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Myra Knoesen | 20 November 2024 South Africa’s recent greylisting by the Financial Action Task Force (FATF) has had significant implications for the country’s regulatory landscape, particularly in the realm of corporate governance. In response, the South African government has introduced amendments to the Companies Act, specifically aimed at enhancing transparency in company ownership structures. The key change is the introduction of beneficial ownership disclosure provisions, which are designed to assist in the fight against money laundering and the financing of terrorism. FAnews spoke to Yaniv Kleitman, Director and Counsel in Cliffe Dekker Hofmeyr's Corporate and Commercial practice, and Roxanne Bain, Professional Support Lawyer in the same practice, to understand the implications of these amendments for South African businesses. The key amendments to the Companies Act The new provisions in the Companies Act require certain companies to disclose the identities of natural persons who ultimately own or control the company. This disclosure must be made to the Companies and Intellectual Property Commission (CIPC). The goal is to improve transparency regarding the true owners - referred to as the “beneficial owners” - of companies, even in cases where ownership is obscured through complex structures such as trusts or corporate entities. The changes are particularly focused on companies with intricate ownership chains, where the company is controlled by another company or trust. In these cases, the company must trace ownership up the chain until it identifies a natural person who is the ultimate beneficial owner. Kleitman explains, “These amendments are crucial for aligning South Africa with international anti-money laundering standards and addressing the concerns that led to the country’s greylisting by FATF.” The complexity of beneficial ownership disclosure The amendments to the Companies Act introduce complexities for companies trying to determine whether they are required to disclose beneficial owners. A company must first assess whether it is an “affected company”, which depends on its share transfer history. Affected companies are required to disclose the holders of a 5% or greater beneficial interest in their shares, while non-affected companies must disclose their ultimate controllers - concepts that are distinct but interconnected. Bain adds, “The challenge lies in the fact that there is no clear-cut threshold for determining who is a beneficial owner. The Companies Act does not specify a percentage of ownership at which a person becomes a beneficial owner, leaving businesses in a grey area.” Interpreting the definition of beneficial ownership The ambiguity surrounding the definition of “beneficial owner” in the Companies Act poses significant risks for businesses. Although the CIPC has indicated that companies should apply a 5% threshold for disclosure, this is not explicitly stated in the legislation. This has created confusion, as the 5% threshold appears to conflate the concepts of a “beneficial owner” and a “5% beneficial interest holder,” which are not necessarily the same. As Kleitman highlights, “Companies now find themselves in the unenviable position of trying to reconcile the technical definition of beneficial ownership with the 5% guideline provided by CIPC. Many companies are likely to err on the side of caution and simply comply with the 5% threshold to avoid potential complications.” Practical implications of disclosure From a compliance perspective, it is crucial for companies to disclose their beneficial owners to the CIPC. Failure to do so can result in severe consequences, including the inability to file annual returns, which may eventually lead to deregistration. However, companies with complex ownership structures face a significant challenge in identifying and disclosing their beneficial owners. Bain notes, “In many cases, companies may not even be aware of who controls their ownership at higher levels, particularly where these structures involve offshore entities, trusts, or partnerships. This lack of transparency makes it difficult for companies to meet the disclosure requirements.” Moreover, while companies are allowed to request information from shareholders about beneficial ownership, there is no legal obligation for shareholders to disclose such details. This lack of enforceability adds another layer of difficulty for businesses striving for compliance. Balancing compliance with privacy concerns The introduction of beneficial ownership disclosure raises important questions about privacy and data protection. Under the Protection of Personal Information Act (POPI), businesses must ensure that the personal information of beneficial owners is handled appropriately. Fortunately, Kleitman explains, “In most cases, over-disclosure is not a concern, as the beneficial owner will generally consent to the disclosure of their personal details. However, companies must still navigate the fine line between compliance and protecting sensitive personal data.” Consequences of non-compliance Companies that fail to comply with the new beneficial ownership disclosure requirements face significant penalties. Bain clarifies, “If CIPC identifies an issue with a company’s disclosure, it must first investigate the matter and provide the company with an opportunity to rectify the situation. If the company fails to comply with the notice, CIPC can apply to the court for a fine to be imposed.” This process ensures that companies are given a fair opportunity to correct their disclosures, but it also highlights the importance of timely and accurate compliance with the regulations. Impact on corporate governance The recent amendments to the Companies Act are likely to have a long-term impact on corporate governance practices in South Africa. The emphasis on transparency in company ownership is expected to drive more rigorous internal controls, particularly in terms of record-keeping and shareholder communications. Kleitman suggests, “To ensure compliance, companies should BREAK maintain detailed organograms and regularly update their ownership structures. They should also encourage shareholders to notify the company of any changes in their ownership interests. This proactive approach will help companies stay on top of their obligations and avoid costly compliance issues.” In conclusion, while the new beneficial ownership disclosure provisions are designed to combat money laundering and terrorism financing, they also pose significant challenges for South African businesses. The lack of clear thresholds, the complexity of identifying ultimate owners, and the need for companies to balance compliance with privacy concerns will require careful attention. However, these amendments are a necessary step in aligning South Africa’s corporate practices with international standards, and businesses that can navigate these changes successfully will contribute to improving the country’s global standing. As Bain aptly puts it, “The regulatory landscape may be challenging, but it also presents an opportunity for businesses to strengthen their governance practices and demonstrate their commitment to transparency.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/compliance-regulatory/2/general/1082/south-africa-s-new-disclosure-laws-a-step-forward-or-regulatory-chaos/40654

Tian Alberts | 18 November 2024 Sakeliga has filed litigation to protect air services providers and customers from harmful and unlawful BEE conditions in air services. In papers served this week, Sakeliga asks the court to set aside the  Air Services Licensing Council’s (ASLC)  harmful, unlawful, and unconstitutional licensing requirements regarding BEE and transformation. The ASLC is a statutory body responsible for the licensing of domestic air services providers, including passenger services, medical services, cargo services, fire-fighting services, and more. Since at least December 2023, the ASLC has been denying and/or frustrating domestic air services providers’ licences by arbitrarily insisting on B-BBEE certification and transformation undertakings. Our lawyers warned the council to halt this conduct and limit itself to the regulatory duties it is lawfully authorised to carry out, but the council persisted and refused to admit any wrongdoing. Denying licences based on BEE is contrary to the ASLC’s statutory mandate in the Air Services Licensing Act (115 of 1990).The Act prescribes that the ASLC must issue licences whenever an applicant complies with requirements on safety, residency, and control and registration of aircraft, and precludes the ASLC from adding additional requirements. There is no basis in law for making race, transformation, or B-BBEE a prerequisite for air services licences.By introducing licensing criteria that have nothing to do with operational standards and accountability, these licensing practices are compromising commercial freedom and the availability and safety of local aviation services. As part of our investigation, Sakeliga discovered an additional concerning practice by the ASLC. Unlawfully so, the ASLC expressly prohibits applicants from recording their licensing application hearings and even bringing any electronic equipment into such hearings. This, despite the fact that the Act stipulates that the hearings should be public.During these hearings, applicants have found themselves confronted with arbitrary and verbal demands regarding BEE and transformation, which conveniently appeared nowhere on paper. If the panel wasn't satisfied with undertakings or explanations, applicants would be instructed to reapply after they had complied with outstanding BEE requirements. Following the ASLC’s refusal to cease its harmful and unlawful conduct, Sakeliga is now requesting the court to: 1.      Set aside the ASLC’s decision to include BEE criteria in its licensing process and declare the inclusion of race-based criteria in such licensing unlawful. 2.      Declare unlawful the ASLC’s prohibition on the use of electronic devices during hearings and on the recording of meetings and other interactions with ASLC staff. Sakeliga’s founding affidavit and supporting documents may be found  here . International Air Services Also Affected Since initiating our investigation into the harmful and unlawful conduct of the ASLC regarding domestic air services licences, we have uncovered and been made aware of similar unlawful conduct regarding international air services in South Africa.  It appears that the ASLC’s counterpart for licensing of international air services, the International Air Services Council (IASC), has been making demands of major international airlines to comply with arbitrary BEE and transformation requirements.  Sakeliga is in the process of obtaining further information through PAIA requests and industry relations and will consider litigation against the IASC should it prove necessary. Issued by Tian Alberts, Legal and Liaison Officer: Sakeliga, 15 November 2024 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/documents/sakeliga-brings-bee-case-against-air-services-lice

BR Reporter | 19 November 2024 The Mineworkers Investment Company (MIC) has launched the third round of its MIC Khulisani Ventures, a R300 million early-stage investment initiative aimed at empowering black-owned, innovative and high-growth businesses in South Africa. Applications are open from November 18 to January 31, 2025. MIC said on Tuesday that this funding window continues MIC’s commitment to fostering economic transformation by supporting businesses with more than 51% black ownership, strong management teams and scalable, innovative solutions. The focus sectors include technology-enabled services, internet connectivity, and cybersecurity. Investment amounts will range from R15m to R30m. “Through MIC Khulisani Ventures, we are committed to creating pathways for sustainable, socially responsible businesses that can thrive in South Africa’s unique economy,” said MIC chief investment officer, Nchaupe Khaole. The venture prioritises post-revenue businesses with the potential to create significant social and economic value, especially those targeting underserved markets. Since its inception in 2021, MIC Khulisani Ventures has supported impactful businesses in sectors such as healthtech and fintech. Past investments include Rentoza, a subscription-based electronics retailer, and Quro Medical, whose Hospital at Home program transforms healthcare delivery. The first two funding windows collectively deployed around R145m, attracting over 2500 applications, 34.4% of which came from women-owned businesses. MIC Khulisani said it continues to encourage applications from businesses that demonstrate the potential to disrupt markets and drive societal impact. Interested entrepreneurs can apply via the platform at khulisani.mic.co.za. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/mic-khulisani-ventures-opens-third-funding-window-for-black-owned-firms-83b5098d-bb64-4c07-9fd9-d130e9467a52

Dimpho Madiba | 19 November 2024 RS South Africa , a global product and service solutions provider for industrial customers, has announced its recent achievement of Level 2 Broad-Based Black Economic Empowerment (B-BBEE) certification, underscoring its unwavering commitment to transformation. This milestone, attained at the end of September, is not merely a badge of honour for the company, it signifies a holistic approach to inculcating transformation within the company and the broader industry. Lebohang Kungoane, B-BBEE Compliance Specialist at RS, explains the importance of the certification in relation to the company’s overarching goals. “We are currently at Level 2 and aim to maintain that status. Our Level 2 certification, achieved in 2023, has become our benchmark, and we will work hard to maintain this level.” This achievement is not an isolated effort but part of an ongoing journey that requires constant planning and implementation. Kungoane highlights the rigorous annual processes involved in maintaining the company’s B-BBEE rating. Her responsibilities encompass everything from strategic planning to sourcing beneficiaries, implementing enterprise and supplier development and socio-economic development initiatives and ensuring compliance. RS’s B-BBEE initiatives are deeply integrated into the company’s Corporate Social Investment (CSI) objectives. “We aim to be a preferred supplier for our customers while contributing to transformation and economic participation in our country. Our mantra drives us to build the company we aspire to be,” she says. RS does not view B-BBEE compliance as a mere tick box exercise but prioritises genuine engagement and meaningful participation. “We pride ourselves on implementing the true intentions of the B-BBEE codes,” affirms Lebohang. “It is about achieving a good scorecard while positively impacting the communities we impact.” This commitment to community engagement is evident in the company’s partnership with the Inqolobane Investment Trust and Qhubeka Charity, which has facilitated bicycle donations to children in rural areas. The initiative not only provides transportation to school but also aligns with RS’s mission of creating sustainable opportunities for those facing socio-economic challenges. Lebohang also highlights the company’s focus on skills development and education through its bursary programmes. “We fund students in engineering fields at universities like the Cape Peninsula University of Technology and the University of KwaZulu-Natal,” she explains. RS goes beyond just funding tuition, as the company conducts needs analyses to provide additional support, such as accommodation and travel allowances. It also offers internal bursaries for employees seeking further education, ensuring that the next generation is equipped for success. The importance of Science, Technology , Engineering , and Mathematics (STEM) education is another critical aspect of RS’s strategy. “We engage with communities at various universities and hope to extend engagement at high schools, to guide students in selecting relevant subjects that will benefit their future career prospects,” says Lebohang. This outreach aims to bridge the gap between education and employment, addressing the prevalent issue of unemployment in South Africa . “Our Level 2 B-BBEE certification is a testament to our dedication to transformation and social responsibility. Through strategic partnerships, community engagement and a focus on education, we not only enhance our operational capabilities, but also make a significant contribution to sustainable growth and social impact in the communities we serve,” concludes Lebohang. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/rs-south-africas-level-2-b-bbee-certification-is-testament-to-its-transformation-2024-11-19

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , 51% Black Owned and 51% Black Women Owned is defined as follows:   “51% Black Owned means an Entity in which:   (a)      Black people hold at least 51% of the exercisable voting rights as determined under Code series 100; (b)     black people hold at least 51% of the economic interest as determined under Code series 100; and (c)      has earned all the points for Net Value under statement 100;”   “51% Black Women Owned means an Entity in which:   (a)      Black women hold at least 51% of the exercisable voting rights as determined under Code series 100. (b)     Black women hold at least 51% of the economic interest as determined under Code series 100; and (c)      has earned all the points for Net Value under statement 100;”   Technical Compliance Services  are available to assist Members in understanding definitions under Schedule 1 of the Amended General B-BBEE Codes of Good Practice.

More often than not when organisations enter into a relationship with an Enterprise Development or Supplier Development Beneficiary, it wants a guarantee that their investment will be successful. Hence, many choose to incorporate accountability clauses to secure their investment. However, Clause 4.12 in Statement 400 of the Amended General B-BBEE Codes of Good Practice  states:   "4.12 Measured Entities are encouraged to develop and implement an Enterprise Development plan and Supplier Development plan for Qualifying Beneficiaries. The plan should include:   4.12.1 Clear Objectives. 4.12.2 Priority Interventions. 4.12.3 Key Performance indicators; and 4.12.4 A concise implementation plan with clearly articulated milestones".   Placing accountability conditions on Beneficiaries may be punitive without taking into account all factors in clause 4.12.   Enterprise & Supplier Development Services  are on hand to guide organisations before entering into a contractual agreement with a Beneficiary, as B-BBEE Sector Codes of Good Practice may have differing requirements.

Early payments apply to Supplier Development Beneficiaries only. Clause 3.7 in Statement 400 of the Amended General B-BBEE Codes of Good Practice  outlines the definitions, as well as the only circumstance in which a Large Enterprise can qualify for early payments:   “3.7 Beneficiaries of Supplier Development or Enterprise Development are EMEs, QSEs or Generic Entities which are at least 51% Black Owned or at least 51% Black Women Owned utilizing the flow through principle. However, in terms of Generic Entities, this is based on the provision that at the first instance of receiving assistance from the Measured Entity, it was identified that such suppliers were EMEs or QSEs. This recognition for Generic Entities will only be allowed for 5 years from the first time of receiving assistance from the Measured Entity.”   Enterprise & Supplier Development Services  are available to help members determine how to claim Early Payments.

Dr Linda Meyer | 18 November 2024 As globalisation and technological advancements reshape economies, South African universities confront a crucial challenge: equipping graduates for emerging technology and renewable energy sectors. Insights from the recent Universities South Africa (USAf) Higher Education Conference underscored the need for the sector to lead with innovative strategies and partnerships. Now more than ever, South Africa’s universities must offer globally competitive and locally relevant education, empowering graduates to thrive in a world marked by rapid change. Globalisation has transformed the educational landscape, requiring universities to maintain international standards while addressing local socio-economic demands. To make matters worse, rising costs and diminishing public subsidies have added pressure to South African universities and students alike, with national student debt reaching R21 billion in 2021 (DHET, 2021). Financial sustainability is critical as these institutions strive to provide accessible education under increasingly challenging circumstances. With over 60% of Africa’s population under 25, the continent’s education and skills development demand is unmatched (World Bank, 2022). This “youth bulge” presents both challenges and opportunities, as universities can play a transformative role in preparing young people for high-demand sectors such as technology and renewable energy (African Development Bank, 2023). For education to resonate locally, it must reflect African cultural knowledge and indigenous research. Current curricula, which are often based on historical frameworks, limit the inclusion of African perspectives and local knowledge. This disconnection hampers students’ ability to relate meaningfully to their studies. Incorporating African knowledge systems and decolonising the curriculum is critical to creating an educational offering that is as culturally grounded as it is globally relevant (Mamdani, 2021, Decolonising the African University). While higher education demand surges, enrollment growth at South African public universities has stagnated at around 1.1 million students. This contrasts sharply with the nearly 570 000 matriculants who qualify for higher education each year (Statistics South Africa, 2023). With limited state funding, public universities can only offer around 210 000 first-time enrolment spaces annually, leaving many students to turn to Private Higher Education Institutions where their NSFAS awards may not be used or to Technical Vocational Education and Training (TVET) institutions where their employment prospects are limited. This gap means that many young South Africans face barriers to higher education and economic mobility. The National Student Financial Aid Scheme (NSFAS) has provided essential support for low-income students. However, NSFAS alone cannot sustain the growing demand and associated costs. For the programme’s sustainability, a system could be introduced where tuition remains free for those who qualify while living and book allowances convert into a payback scheme that graduates repay once they reach a certain income level. This approach could extend NSFAS’s reach and ensure ongoing access for future students (NSFAS, 2023). South Africa’s graduate unemployment rate, while better than the national average, remains troubling at 9.7% (Statistics South Africa, 2024). This disconnect between qualifications and job market demands has sparked concern about the relevance of traditional degrees. According to the International Labour Organization (ILO), around 50% of graduates are employed in fields unrelated to their qualifications, revealing a disconnect in the educational pipeline (ILO, 2022). Employers continue to prioritise graduates from select universities over TVET graduates, restricting employment prospects for vocationally trained individuals (CEDA, 2023). To address this, we must expand work-integrated learning (WIL) through incentives and partnerships that link education to real-world skills. Legislative reform could encourage businesses to provide internships and bursaries by offering tax rebates, akin to Section 12H of the South African Income Tax Act, which supports occupational learnerships and apprenticeships (SARS, 2023). This would increase WIL opportunities, enabling students to transition more seamlessly into employment. One glaring skills gap is the shortage of veterinarians. The Department of Agriculture, Land Reform, and Rural Development (DALRRD) reports that while South Africa graduates approximately 147 veterinarians annually, about 107 emigrate each year, leading to a deficit that impacts the agricultural sector. Adopting a policy similar to Australia’s, where emigrating graduates repay the public funds invested in their education, could help South Africa retain essential skills and ensure local benefits from education investments. The Council on Higher Education’s Quality Assurance Framework (QAF) is a step toward a more flexible and accountable system. However, bureaucracy still hampers responsiveness to industry needs. Streamlining these processes would empower institutions to introduce programmes aligned with a globalised economy, ensuring that South African higher education remains competitive and relevant. The debate over academic salaries is contentious. Recent studies from PwC and REMchannel reveal that academic salaries in South Africa are often higher than the national median, raising questions about long-term sustainability. However, discussions around salaries should consider the broader value that academics and universities bring to society. Rather than fixating on salaries alone, universities and the government should focus on resource allocation to maintain educational quality while ensuring financial health. South Africa’s higher education sector faces challenges that demand collective action. Regulatory reform, sustainable funding models, and partnerships with industry are essential to create a system that prepares graduates for impactful careers. South Africa can build an educational ecosystem that drives economic growth and societal progress by fostering collaboration between academia, government, and private sector stakeholders. As green technology and sustainable development opportunities emerge, innovation and collaboration in higher education are urgently needed. South Africa risks missing out on these critical economic openings without swift adaptation. Now is the time for South African leaders across education, government, and industry to reimagine and reshape higher education, ensuring that tomorrow’s graduates are competitive participants in the global economy and innovators and leaders. The stakes are high, and the window for change is closing. Only through transformative, collaborative efforts can South African higher education rise to meet this moment, crafting a future where universities are at the forefront of economic growth, social development, and global progress. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/opinion/transforming-south-african-higher-education-for-a-sustainable-future-e9a4be2a-1560-4a5f-bef3-4e50b62c5c4e

Mamsi Nkosi | 18 November 2024 According to Statistics South Africa’s Quarterly Labour Force Survey, youth unemployment rates in South Africa are still incredibly high, with 40.7% for those aged 25 to 34 and 59.7% for those aged 15 to 24. Vodacom has partnered with Vuma Reach to provide fast, dependable prepaid fiber connectivity as well as employment and skill-building opportunities to underprivileged townships across the country in an effort to comba t youth unemployment and close the digital divide. The program will train and hire young people from specific townships nationwide to act as agents in their communities. Additionally, these agents will take part in a 12-month curriculum focused on entrepreneurship abilities that will give them operational and company management skills. Participants in this “business-in-a-box” approach are empowered to pursue sustainable employment and entrepreneurial endeavors in addition to receiving useful, transferable skills. Johnny Dos Santos, Fixed Services Executive at Vodacom South Africa, emphasized the dual purpose of the initiative: “We understand the importance of inclusivity in building a thriving digital society and the urgent need to address youth unemployment. This partnership allows us to create job opportunities for young people while delivering affordable connectivity to underserved communities. This program aims to foster a more inclusive society where youth and their communities can actively participate in the digital economy.” The program’s participants are already seeing life-changing outcomes, “This program has given me a path for professional growth, along with technical skills, leadership experience, and business knowledge,” Mahlogonolo Mokhetoa, a 23-year-old from Soshanguve, explained. I’ve been able to provide for my family, save for the future, and make a steady income because to it. In a similar vein, 31-year-old Athenkosi Dabulamanzi of Motherwell, Gqeberha, stated, “This program changed my life.” I can now declare with confidence that my life is stable and that I am independent.  “By empowering youth with essential skills, we’re equipping the next generation of entrepreneurs to drive digital transformation in their communities. This initiative creates opportunities for employment and education, innovation, and community upliftment.” Dos Santos concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itnewsafrica.com/2024/11/vodacom-partners-with-vuma-reach-to-empower-sa-townships-youth-unemployment/

Philippa Larkin and Siphelele Dludla | 18 November 2024 South Africa’s youth unemployment rate eased slightly in the third quarter of 2024, but millions of young people remain unemployed in a tough economic environment The South African Youth Economic Council (Sayec), responding to the quarterly Labour Force Survey (QLFS) released this week, warned that this is just not good enough. “Youth unemployment is not just a social challenge, but an economic liability that undermines South Africa’s potential for growth and stability,” it said in a statement. Statistics South Africa data showed the youth unemployment rate easing slightly from 46.6% in the second quarter of 2024 to 45.5% in the third quarter of 2024. The total number of unemployed youth (age 15 – 34) fell by 171 000 to 4.8 million while employed youth increased by 66 000 to 5.8 million. Despite these improvements, the economic outlook for young South Africans remains challenging. “Vulnerable youth, comprising those aged 15-24, remain the most disadvantaged segment when it comes to finding sustainable employment in this subdued economy,” said Investec economist Lara Hodes. She noted that although the youth unemployment rate improved slightly, it remains critically elevated. Hodes said, “Improving the level of and access to education is essential,” highlighting that unemployment among those with less than a matric certificate remains above 37%, while graduates face a lower, yet significant, unemployment rate of 9.8%. Sayec is concerned that a disengaged youth population will have long-term negative impacts on the economy by limiting consumer spending, reducing tax revenue and increasing dependency on social support systems. “Addressing this crisis strategically aligns with developmental objectives by fostering a productive, empowered generation, while ensuring economic viability by expanding the labour force and driving domestic consumption,” the council said. It warned that persistent unemployment cycles lead to economic exclusion, eroding young people's skills, lowering their future employability, and worsening poverty. “Addressing this requires immediate interventions, including targeted outreach programs, accessible skilling initiatives, and localised employment hubs that reignite hope and rebuild pathways to participation in the economy,” Sayec said. The council urged a “structured, multi-sectoral approach” to tackle the root causes of unemployment and discourage despondency. Moreover, Sayec noted that a national agenda must prioritise sectors showing resilience and potential for job creation, particularly for youth. It pointed to mining, with its 18% year-on-year employment growth, and construction, which is experiencing gains of approximately 11% quarter-to-quarter. By integrating youth into these sectors, South Africa could simultaneously address unemployment and advance developmental objectives, such as closing infrastructure gaps and enhancing competitiveness, it said. “Economically, youth participation in these industries increases productivity and injects innovation, fostering long-term sectoral sustainability and profitability,” it further said. Youth Employment Service (YES) chief partnership officer Tsholo Mogotsi advised young job seekers to pursue skills assessments and consider reskilling to increase their competitiveness in a difficult job market. YES, which operates as South Africa’s highest-impact youth employment initiative, aims to tackle youth unemployment through private-sector partnerships. The official unemployment rate fell by 1.4 percentage points to 32.1% in the third quarter of 2024, down from a two-year high of 33.5% in the second quarter. Nedbank economist Johannes (Matimba) Khosa said the outlook for the job market looked more promising. “Employment will likely increase moderately as the economy recovers over the next 12 to 18 months. Trading conditions have already improved significantly, with load-shedding suspended and logistic networks slightly less clogged. “While employment is forecast to increase, the pace of job creation will still be too slow to absorb new entrants into the labour market and reduce unemployment significantly. Consequently, the unemployment rate will likely remain high, easing only slightly and still leaving a large pool of discouraged workers.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/addressing-youth-unemployment-in-south-africa-strategies-for-economic-growth-c2eec02b-9467-4b3f-a92e-c1660e819c87

Admire Moyo | 15 November 2024 Fintech group Lesaka Technologies is offering shares worth R215 million to its employees, in an effort to boost its broad-based black economic empowerment (BBBEE) rating. Formerly known as Net1 UPS, Lesaka is listed on the Johannesburg Stock Exchange as well as the Nasdaq. BBBEE levels are a measure of a company’s compliance with black empowerment in terms of ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Compliance with BBBEE can provide a range of benefits for businesses, including improved access to various business opportunities, enhanced reputation, increased competitiveness, access to funding and tax benefits, as well as the empowerment of black people in South Africa. Lesaka shareholders recently voted on and approved the funding and issuance of shares to the Lesaka Employee Share Ownership Plan (ESOP) Trust at its annual general meeting. Lincoln Mali, CEO of Lesaka Southern Africa, says: “We are very proud of the launch of our broad-based employee share ownership plan. Lesaka has been on a far-reaching transformation journey and our employees becoming shareholders is a significant and an important milestone for us.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/lesaka-employees-get-r215m-worth-of-company-shares/4r1ly7R9py6vpmda

Thabi Shomolekae | 13 November 2024 Home Affairs Minister Leon Schreiber noted on Wednesday that the digital transformation of the border environment is an important priority for the Government of National Unity (GNU) to be able to grow the economy and create jobs. Schreiber was speaking during the inaugural Border Management Conference, where he said the Border Management Authority (BMA) was set to play a fundamental role in the digital transformation of the entire Home Affairs environment . He said a deliberate focus on building a strong organisational culture, unlocking the benefits of partnership, and embracing technology , held the key to turning the BMA’s vision of building an integrated border law enforcement authority into reality.  His department’s vision for digital transformation meant it had to digitalise the immigration process. “Given the capacity and human resources constraints facing the authority, there can be no more powerful force multiplier than investing in technology . For example, a single modern drone used by the BMA for surveillance of the border line will be able to effectively detect illegal crossings in a context where the authority lacks the manpower it needs for surveillance,” Schreiber pointed out. Body cameras can similarly majorly impact ongoing efforts to combat corruption, he added. “Importantly, as I have also repeatedly emphasised to the BMA management, all of this data will only be effective if it is integrated and analysed on an ongoing basis in order to guide decision-making,” he stressed. In highlighting BMA achievements, he noted that over the last two quarters, the BMA apprehended over 36 000 “undocumented, undesirable and inadmissible persons”. It seized 249 fraudulent documents, confiscated counterfeit cigarettes worth over R22-million, counterfeit clothing worth over R4-million, more than 1 100 stolen vehicle parts, and drugs with a street value of over R6-million. “Over the same period, the BMA screened over two-million people, searched more than 108 000 trucks , processed over 12 000 flights and conducted 648 roadblocks around ports of entry,” he added. It was crucial to leverage the strength of partnerships and cooperation, Schreiber said, as he revealed that the BMA had only 2 700 out of the 11 000 officials it required. However, the BMA was committed to fostering partnerships with the private sector to leverage cutting -edge technology , streamline trade processes, and optimise operational efficiency , he said. “By working with logistics companies, for instance, we can more effectively monitor the movement of goods and manage the flow of trade, which helps reduce congestion and improves service delivery,” Schreiber said. He stated that collaboration with security firms would also enhance surveillance, increase the monitor of high-risk areas, and ensure quicker response to incidents. Technology firms were also key players in this effort, to help integrate digital solutions that made border processing faster and more secure, he said. “By creating public-private partnerships, we will encourage the development of a border management framework that serves both public interests and private sector growth,” Schreiber stated. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/digital-border-transformation-important-to-grow-economy-create-jobs-leon-schreiber-2024-11-13