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Tshepiso Seopa | 31 January 2023 TBWA\South Africa, a brand experience company, has announced the 2023 launch of its cutting-edge and innovative data and insights internship programme. According to the company, staying ahead of the digital curve means ensuring talent keeps up with the demands of the modern-day workplace, such as requirements for data and digital analytical ability. The company says that the 2022 group has successfully completed the programme and is set to advance their careers within the organisation and in the industry; the company is looking forward to welcoming the interns of 2023. TBWA\SA Group CEO Luca Gallarelli adds that the result has been tremendous, opening up a healthy and fast-growing pipeline of fit-for-purpose digital and data talent while also helping accelerate the transformation of the agency collective and industry at large. "Being the disruption company demands that we live in a constant state of restlessness with our orientation always being to reach higher. We realised that getting the right candidates on board with such specialist and rare skills is difficult and expensive, with poaching and competition on the rise. The current problem is that there is a shortage of quality digital and data talent," says Gallarelli. The need for performance marketing, end-to-end measurement, e-commerce and other solutions saw agencies scrambling to meet demand, according to TBWA\South Africa. Gallarelli adds, "I think agencies were in a bit of trouble, but across the TBWA\ collective, we decided to think differently about an old problem. Within a few short months, we recruited our first five candidates who have successfully completed the programmes, and some have gotten jobs with TBWA agencies, while some went on to further their studies." "It's an achievement we are immensely proud of. And we're seeing other businesses in the collective requesting the same process, tools and training to drive their future talent objectives," says Gallarelli. The TBWA\SA approach relies on bringing talent into a fully immersive experience where they attend essential meetings, briefs, pitches and strategy development and shadow only the best. Interns are not given the standard mundane jobs; they meet with leaders rather than middle managers. Critical thinking and soft skills are also developed — key but often forgotten parts of traditional training programmes. "The TBWA\SA internship helped a lot. I have learned valuable skills, soft and hard, and I better understand the brand communications industry. I am extremely grateful for the opportunity that TBWA\SA has given me," concludes Cherezaad Samuels, one of the 2022 interns. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.mediaupdate.co.za/marketing/153334/tbwasa-boasts-a-successful-data-and-insights-internship-programme

1 February 2023 | Fever Reporter The national government will be lobbied to move with speed to ensure the passing of the new Public Procurement Bill. The ANC in KwaZulu-Natal said it is firmly behind the broad-based black economic empowerment (BBB-EE). The party’s provincial secretary, Bheki Mtolo said BBBEE is an instrument designed to fast-track the entry of indigenous people into all sectors of the economy as owners and creators of wealth. Mtolo said the ANC has noted comments on various social media platforms that the ANC government is abolishing BBB-EE. “Unless otherwise stated, the ANC understands that Public Procurement Bill, which the National Treasury submitted to the President and Parliament repeals the Preferential Procurement Policy Framework, or Preferential Procurement Regulations of 2017. The Bill is aimed at unifying the currently fragmented laws dealing with public sector procurement by creating a single regulatory framework for local, provincial and national governments, as well as State-owned enterprises. The 2017 regulations under the Preferential Procurement Policy Framework Act were in contravention of Section 217 of the Constitution,” said Mtolo. He added that the Constitution is very clear regarding the role of the state. It says: “The State must implement a preferential procurement policy that advances people who have been disadvantaged by unfair discrimination.” Mtolo said the new Preferential Procurement Regulations are therefore aimed at addressing these issues. “Regarding BBB-EE, for our part as the ANC in KwaZulu-Natal we have resolved that the national government will be lobbied to move with speed to ensure the passing of the new Public Procurement Bill, rollout of province-wide awareness roadshows to explain and promote the implementation of the new preferential procurement regulations, ensure that stricter measures are put in place to deal decisively with corrupt elements involved in the looting of state resources using new Preferential Procurement Regulations, ANC will mobilize communities and all stakeholders to join hands and fight the practice of fronting using BBB-EE. Fronting is not only unethical but is fraudulent and a criminal offence. We have witnessed the practice of using domestic workers to sustain this practice. We want law enforcement agencies and the court of law to come down hard on those who are defrauding government through this practice,” said Mtolo. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://southcoastherald.co.za/488190/anc-in-kzn-supports-bbb-ee/

31 January 2023 | PropertyWheel “No society can expect to grow or thrive when the vast majority of its young people are out of work” – a comment made by President Cyril Ramaphosa shortly before SA’s 15 to 24 year old’s recorded an unemployment rate of 59.6% during Q3 2022, with 25 to 34 year old’s at 40.5%. Of the 10.2 million South Africans within the younger age group, 34.5% were registered as unemployed or not enrolled in education or training according to Stats SA. Of more concern is that 10.7% of graduates were without work during this period too. This, coupled with a critical skills shortage, paints a picture of an institution that has systematically degraded over the years, failing to produce on its promises of transformation, free education, and job creation. Like many other organisations in the private sector, SAPOA, the voice of SA’s commercial property industry, stepped up to the plate by launching the SAPOA Bursary Fund in late 2009 in aid of previously disadvantaged individuals, many of whom are the first generation within their families to enrol for higher education. Since welcoming its first cohort of students in 2011, the SAPOA Bursary Fund has granted R27.6 million in sponsorships to well deserving individuals who do not have the financial means – like Philani Mzila, one of the programme’s original bursars and a success story worth mentioning. Born in KwaMashu township in Durban, Philani was raised by his single mother in Johannesburg who worked two jobs to support him, and his brother. Through his academic achievements, he attended Jeppe High School for Boys on a scholarship where he completed his Matric and when he set his sight on studying finance, he applied – and was awarded – a bursary through SAPOA’s Bursary Fund. Post-graduation, he started his career in 2013 with the Public Investment Corporation (PIC), a member of SAPOA. Today, he works as an Investment Manager at Founders Factory Africa, focussing on investing in and scaling FinTech, HealthTech, and AgriTech ventures in Sub-Saharan Africa. He is a Chartered Development Finance Analyst (CDFA), an alumnus of the World Economic Forum Global Shapers Community and he has contributed to academia through papers focused on behavioural finance and savings behaviour in Sub-Saharan Africa. Philani holds a BCom (Hons) in Investments and Corporate Finance from the University of Witwatersrand and a MPhil in Development Finance from Stellenbosch Business School. “SAPOA’s bursary fund was amazing from an overall support perspective,” he says. “It covered my tuition, residence and text books costs which allowed me to take my mind off of the pressure and the impact this would have had on my family. I was able to fully immerse myself in the university experience, both academically and from a social perspective.” Investing in SA’s property leaders Over the many years, the programme’s model has developed and while it has moved away from sponsoring ‘general’ qualifications within the property sector, such as Philani’s, it has shifted to home in on industry-focused qualifications in advocation of “circling back” into the real estate industry, says Moeketsi Moshata, Bursary and Career Specialist at SAPOA. “Initially, the bursary fund also only focused on sponsoring tuition. We quickly realized that there are a number of ad-hoc expenses that students are faced with and now, we also cover our students’ accommodation and text books.” The programme has also incorporated mentorship, bringing together various professionals from within the industry including tutors, to assist students with subjects that they struggle with, HR practitioners, who play a part in preparing the graduates for interviews, and psychologists who support students on a psycho-social level. “While we have found that our students do well from an academic perspective, they often aren’t equipped with the necessary skills when going for a job interview. We have come across situations where the psycho-social morale of our students is bad, and we have worked tirelessly to ensure that we do not lose anyone half-way through the programme. The gap between high school and university is large – other graduates, from other universities, are their competition and it is essential that they are equipped to stand above the rest.” Preparing for the world of work Most of the programme’s sponsors are industry members of SAPOA and outside of their financial support, these partnerships have evolved to fuse with various independent graduate programmes, including Vukile Property Fund’s initiative, The Vukile Academy which was launched in 2019 as driver for the REIT’s skills development and transformation strategy. Historically, three or more graduates from SAPOA’s programme have been accepted into the academy’s twelve-month internship programme every year where individuals gain professional experience within the working environment. “Our internship focuses on employing new graduates with applicable property related qualifications. It is not a requirement for the applicants to have prior working experience. We look for dynamic individuals with a strong work ethic, who are eager to learn and passionate about making an impact in the sector,” says Nomsa Kole, HR, and Transformation Manager for Vukile Property Fund. “Access to quality education and youth unemployment are concerning issues that our country is facing and contributions to programmes like the SAPOA Bursary Fund and the Vukile Academy are not only important but should be a requirement for our country’s benefit.” Applying to the bursary fund For individuals wanting to apply for 2024’s intake, there are three main criteria that need to be considered: applicants must be accepted and registered with the university of their choice outside of the degrees that fall within the bursary fund, they must require financial assistance, and they need to be hard workers. “Applicants do not necessarily need to be ‘A’ students – we have the right support via our tutors to assist them along their journeys. What we do look at are things like extra-curricular activities during Matric. I have always told our students that when they work hard, the opportunities will be there. Your academics need to be good; you need to be persistent and to possess curiosity to learn new skills. You need to enter the room to learn, to grow and most importantly, to ask the right questions.” “We have to think towards the future and to implement solutions that can assist our youth in advancing, especially with the high youth unemployment rate. As an industry, we need to come together with the resources we have. Past graduates of our programme have gone on to become mentors and tutors over the years which has helped to close the circle and a way in which to pay back the support that they received.” Applications for 2024’s intake open on the 1st of July 2023 and close on the 15th of September 2023. All successful candidates will be notified by November 2023. Keep an eye on our website and social media platforms for more information. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://propertywheel.co.za/2023/01/closing-the-circle-investing-in-sas-property-leaders-through-the-sapoa-bursary-fund/

31 January 2023 | Monique Mortlock-Malgas Western Cape Minister of Social Development, Sharna Fernandez, joined dozens of young people from Prince Albert, Leeu Gamka, and Klaarstroom on 28 January 2023 for a Youth Indaba hosted by the Prince Albert Community Trust (PACT). PACT is a Non-Profit Organisation (NPO) providing services to uplift, empower, and transform communities in the Prince Albert Municipality. Its three focus areas are: education, health and well-being, and youth and skills development. The purpose of the Youth Indaba was to share information about job opportunities that will arise from the maiden Journey to Jazz Festival, taking place from 03 to 07 May 2023 in Prince Albert. The Indaba also had experts in the fields of events management, videography, photography, and the performing arts sharing their knowledge with the youth. “Prince Albert’s saviour is eco-tourism. I’m hoping the Journey to Jazz Festival will open us up to a global audience and grow the economy of the town. I hope the youth walks out of this Indaba excited and wanting to be part of this, wanting to be part of the history of the town. But we still need a buy-in from the private sector, to really make this a success,” said PACT executive trustee, Ingrid Wolfaardt. Prince Albert Mayor Linda Jaquet said: “This is an opportunity for young people to learn valuable skills in the lead up to, during, and after the festival. My dream is that Prince Albert will be the festival capital of the Central Karoo, and these skills will be used all the time.” When speaking to the youth, Minister Fernandez shared her experiences in the Kannaland Municipality, where she’d recently conducted a visit. Here Minister Fernandez joined Western Cape Department of Social Development social workers on site visits to clients. She saw first-hand the immense challenges facing communities, especially the youth, like a lack of job opportunities, substance use disorders and abuse. “When I was in Kannaland, I met a young woman who has had nearly every obstacle thrown at her from an early age. She’d just found out she’s been accepted into the university of her choice, and she was so excited about what this meant for her future. She told me she wants to be successful, not just for herself, but for her family and the rural community she lives in. Her story filled me with so much hope, and I want to encourage you as young people to keep hope alive, no matter your circumstances. Embrace opportunities like this Youth Indaba, because you are the drivers of change, you are the future of this country,” said Minister Fernandez. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.westerncape.gov.za/news/excitement-brewing-among-prince-albert-youth

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BR Reporter | 1 February 2023 Didi Onwu, managing editor of the Anzisha Prize. Image: Supplied. With South Africa’s high unemployment rate and harsh economic conditions, many turn to entrepreneurship to help carve out a living. The youth have been particularly hard hit by economic uncertainty in the labour market, as they mark an unemployment rate among the highest in the world. According to Statistics South Africa’s Quarterly Labour Force Survey for the first quarter of 2022, the unemployment rate sat at 63.9% for young people between the ages of 15 to 24; and 42.1% for those between the ages of 25 and 34. This is against a current national unemployment rate of 34.5%, translating to only 2.5 million of South Africa’s more than 10 million youth aged 15 to 24 participating in the labour force. This is worrying as the country’s youth population will only continue to grow at a rapid pace. It’s also a concern since this phenomenon can only exacerbate youth unemployment, if nothing is done urgently. “The worsening unemployment situation has left so many young people discouraged and feeling like they have lost any hope of finding not just a job, but meaningful work that suits their interests, skills and capabilities,” said Didi Onwu, managing editor of the Anzisha Prize. The initiative is a collaboration between the MasterCard Foundation and the Africa Leadership Academy, and provides a venture-building fellowship programme for businesses started by young entrepreneurs between the ages 15 and 22 in various African countries. Onwu noted that while things might seem dire, this is not a dead end for South Africa’s youth as there is another avenue open to young people. She believes that entrepreneurship will enable them to build their career pathways, create their own opportunities, and gain financial independence. “Young people simply cannot rely solely on the idea of being employed by someone else anymore, but by shifting their efforts from looking for conventional employment towards entrepreneurship they will be able to create new marketable opportunities for themselves,” she said. “To ensure that entrepreneurship is a truly viable alternative to traditional employment options, we need to empower young people with the relevant knowledge, resources and tools they need to succeed.” Providing young entrepreneurs with the support they need to run successful businesses is the primary mission of the Anzisha Prize. The organisation’s three-year programme focuses on assistance in key areas such as business development and personal leadership through the codification and automation of key operations, funding, mentorship, and skills training workshops. Every year, 20 to 30 young entrepreneurs are selected to take part in the fellowship programme and receive guidance to unlock their full entrepreneurial potential. This year’s winning candidates include an array of entrepreneurs who are bringing their innovations to life, such as 22-year-old Gaoagwe Jeje who founded the farming business, Kgosi Poultry, which produces chickens and eggs for consumption. Jeje created Kgosi Poultry as he had realised that chicken production was exceptionally low in South Africa, with a heavy reliance on imports. While he currently runs the business with the help of one other part-time employee, Jeje plans to expand the business to employ over 300 employees in more than eight branches across South Africa. Meanwhile, driven by her own struggles with STEM subjects in school, Anzisha Prize winner Noreen Mutavhatsindi created Phindulo Tutoring when she was a final-year student at the University of the Witwatersrand to help learners improve their grades. With the goal of encouraging more students to go into STEM careers, Mutavhatsindi hopes to become a leading provider of maths and science tuition in South Africa, and build a network of over 500 tutors. Lastly, 22-year-old founder of restaurant and catering company, Athinga’s Corner, Athingahangwi Ramabulana has always had an enterprising spirit and started her business when she was just 18, with the aim of providing nutritious food to university students daily – particularly those living in self-catering residences. Not only has the company developed an online ordering system and made use of platforms like UberEATS to cater to customer delivery needs, but Ramabulana hopes to expand the reach of her business in the future by opening branches at several universities in South Africa. “Through the achievements already marked by these young entrepreneurs and their ambitions yet to be reached, we can clearly see that entrepreneurship has real power to help young people. “This is not just in determining their own futures but also significantly, and positively by creating impact beyond themselves through service to their communities via the innovations and businesses they create. These also help in the creation of new employment opportunities, and contribute to the development, growth, and competitiveness of the economy as a whole,” said Onwu. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/why-entrepreneurship-should-be-a-priority-for-youth-in-2023-cf303930-b9f0-4a2d-9a7d-140904171355

Staff Writer | 31 January 2023 The 10 selected start-ups of the first GrindstoneX all-female founders accelerator. Business accelerator Grindstone and Naspers Labs have selected the first 10 female entrepreneurs to benefit from the GrindstoneX female entrepreneur accelerator programme. The successful female-founded tech start-ups are: Africa Beyond 4IR, Blushproof, Chicken Bar, Four Minute Medicine, Seponono Africa, Abaguquli, Thetha Digital, Tsehla Holdings, Wisi-oi Marketplace and Young Rebels Marketing. According to a statement, the selected businesses are active in a wide range of sectors, including hydroponics, branding and web development, fashion, online educational content, as well as digital empowerment through animation, gaming and virtual reality. “We have been intentional in our recruitment approach in all our Grindstone programmes to ensure we increase the number of businesses who are female-founded and -led,” says Catherine Young, partner at Grindstone. “This enables us to provide direct support to improve entrepreneurial opportunities equally, and to provide further springboards for investment-ready female-founded businesses in South Africa.” Officially launched in September, the three-year accelerator programme aims to empower female-founded businesses to become more investible, scalable and exit-ready. It is made possible by funding support from Naspers Labs. The female founders will undergo detailed assessments and analyses of their companies, followed by carefully structured interventions, as needed. Interventions include business strategy, go-to-market planning, funding readiness and networking, as well as expert business coaching, including mentorship and advice from Grindstone alumni companies that have successfully scaled or exited their businesses. “South Africa has a reputation for breeding innovative businesses, but there is still a lot of untapped potential among female entrepreneurs,” states Mapule Ncanywa, head of Naspers Labs. “Given Naspers Labs’ focus on addressing unemployment through digital skills training, this initiative is particularly exciting because not only are we helping to uncover female entrepreneurial talent, but we are also adding rocket fuel to South Africa’s economic growth and job creation.” Previous alumni of Grindstone’s programmes include on-demand grocery delivery provider OneCart, pre-owned designer luxury brand Luxity, delivery management platform Loop and visitor management start-up Wizzpass. “The South African start-up ecosystem is vibrant, creating innovative and purpose-driven businesses with the potential to make a powerful impact across South Africa – we really had our work cut out for us to select the final 10,” notes GrindstoneX programme director Nonceba Qabazi. “We were delighted to be presented with a number of amazing female candidates who were well-positioned to benefit from the support GrindstoneX offers. These start-ups have one thing in common – the ingenuity and drive of their female founders.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/lLn14MmQXPEMJ6Aa

Andile Sicetsha | 31 January 2023 A national state of disaster could go a long way in fast-tracking Eskom's recovery. Here's how. President Cyril Ramaphosa may turn to drastic measures and declare Eskom‘s energy crisis a national state of disaster, the public heard on Monday evening. Eskom could be declared a national state of disaster. As reported by Business Day, Ramaphosa made these remarks at the closing of the ANC’s Cabinet lekgotla. At this juncture, the president explained, there is a consensus among ANC leaders and alliance partners that extraordinary interventions may be necessary to save South Africa from a disastrous energy crisis, and the Disaster Management Act could hold the key to fast-tracking the government’s response to Eskom’s woes. “This lekgotla has agreed that the co-ordination of our response also needs to be escalated to the most senior levels of government and that we need to communicate more clearly and the message should be a singular message so that there is no confusion among our people,” the president explained. Eskom has been rotationally implementing loadshedding for more than 15 years consecutively, with no hope of an end in sight, as the utility battles internal leadership issues, skills shortages, corruption and a 10-figure debt backlog. Recently, the power utility had, after numerous attempts, strong-armed the National Energy Regulator of South Africa (NERSA) into approving an 18.5% tariff increase, which, in the 11th hour, was intercepted by the president. It seems, the only way out of rampant loadshedding that has gotten so bad, Gauteng could suffer a reservoir blackout if outages continue at escalated stages, is declaring Eskom a national state of disaster. It remains unclear when this declaration will be made final, as Ramaphosa has yet to return with an update on Monday’s gob-smacking revelations. Here’s what it means for the electricity supplier The last time the Disaster Management Act was used to bypass bureaucratic hurdles was at the start of the COVID-19 pandemic in South Africa, back in March 2020. At the time, Cogta Minister Dr Nkosazana Dlamini-Zuma enacted Section 27(1) to “declare a national state of disaster having recognised that special circumstances exist to warrant the declaration…” The Act allowed the minister to bypass certain limitations contained in several Cabinet portfolios and have far-reaching access to the National Treasury. Quoted by Business Day, the DA’s shadow minister of public enterprises Kevin Mileham provided a clearer explanation of the impact such a declaration would have on Eskom. “The immediate outcome of a ring-fenced state of disaster is that it will enable the government to bypass its own self-imposed obstacles, bottlenecks and cost inflations in the form of unworkable labour legislation, localisation requirements, cadre deployment, and preferential procurement,” he explained. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://swisherpost.co.za/viral/heres-how-eskom-may-benefit-from-a-national-state-of-disaster/

Bloomberg | 30 January 2023 NTT Ltd. sued its former global chief executive officer Jason Goodall in the UK, alleging he had a secret financial interest in a Johannesburg deal that was meant to improve the Black Economic Empowerment rating of the telecoms company’s South African arm. Goodall in 2019 approved the sale of NTT-owned Dimension Data Pty Ltd.’s sprawling headquarters in Johannesburg suburbs at “significantly less” value to a majority black women-owned fund, Identity Fund Managers Pty Ltd., in which he had either already invested or at least had a plan in place to invest, NTT alleged in the suit. “Goodall and the other executives’ conduct in arranging and acquiring their interests in the Identity Fund and concealing and failing to disclose those interests amounts to gross misconduct involving dishonesty,” NTT’s lawyers said in the court filing. Goodall didn’t respond to messages left for comment. Identity Fund was unaware that there was a case taking place in the UK, it said in an emailed statement. The fund, however, denied any wrongdoing and said the allegations by Dimension Data in South Africa were based on hearsay and are “defamatory distortion.” A spokesperson for NTT and Dimension Data confirmed that legal action was being taken in the UK and South Africa, declining to comment further. Goodall’s “fraudulent misrepresentation” means he should repay the $17.6 million he received as part of his retirement package in 2021, argued NTT and Dimension Data. On Jan. 18, the UK high court allowed NTT to serve Goodall the court documents, initiating the formalities for the case to proceed. Dimension Data, South Africa’s biggest listed technology stock before a 2010 buyout by NTT, decided to sell its Johannesburg headquarters for the twin purpose of selling assets unrelated to its core business and improving its Black Economic Empowerment rating, according to NTT’s court filing. These ratings are a core part of government policy to encourage the sale of assets to people disadvantaged during apartheid in Africa’s most industrialized nation. The campus was bought by Identity Fund for 1.4 billion Rand ($81 million) in 2019. The deal is now in the early stages of being unwound, NTT’s lawyers said in the suit. Dimension Data has separately sued other officials of the company for the alleged graft in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/business/478333-dimension-data-parent-sues-former-ceo-demands-r305-million-repayment.html

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ENCA | 31 January 2023 JOHANNESBURG - Government says it is considering helping households and small businesses install solar power and other energy saving devices. In his weekly newsletter, president Cyril Ramaphosa says government is looking at different mechanisms to address the rising cost of electricity. These include measures such as, supporting households with rechargeable lights, and working with school pupils to catch up on lessons interrupted by rolling blackouts. He says further information on these, and other initiatives will be provided in the coming weeks. The President's comments come after the National Energy Regulator granted an 18.65 percent increase in electricity tariffs for Eskom. The President indicated that the tariffs are necessary for Eskom’s financial sustainability. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.enca.com/business/govt-assist-small-businesses-smmes-install-solar-power

Sunday World | 30 January 2023 Growing SMMEs in the country for economic development has been a task on the cards by government for years. / Gallo Images Small, micro and medium enterprises (SMMEs) are often regarded as the backbone and drivers of inclusive economic growth and development in South Africa, as well as the rest of the world. SMMEs play a critical part and contribute significantly to the economy – 34% to South Africa’s gross domestic product. This sector is often seen as one of the solutions towards alleviating some economic challenges such as poverty and the high unemployment rate. Surely these challenges can be addressed by policies that encourage SMME development and sustainability. Growing SMMEs for economic development has been on the cards for the government for years, even in former president Jacob Zuma’s era. In his state of the nation address in 2016, Zuma stated that South Africa must have created at least 6-million jobs by 2030, and one contributor would be using SMMEs. In 2022, President Cyril Ramaphosa announced in his Sona that the government was trying to unleash the full potential of small, micro and informal businesses. Furthermore, the National Development Plan 2030 (NDP 2030) is looking to SMMEs as a major source of employment and big contributor to the growth of the economy. It has also been forecast in the NDP that by 2030, over 90% of all new jobs will be in SMMEs. A report by the International Finance Corporation (IFC) estimates that small, micro, and medium enterprises constitute more than 90% of all formal business in the country, employing more than 50%-60% of the workforce. Considering this, is it not ironic that we do not hear much about SMMEs and their impact on economic development? The socio-economic challenges faced by South Africa make the need to develop and nurture SMMEs nothing short of crucial, now more than ever. One of the many ways for the government to stay committed to its plan to grow the sector was through the Planning Commission, which was meant to draw up a plan to stimulate growth and deal with other social and economic challenges that recommended the formation of the ministry of small business development in 2014. Under this department, numerous entrepreneurship support programmes and various forms of targeted support, which include legislation requirements, is to be found. Now that we have this ministry, how many small businesses can say they are happy with the support it has provided? Of these programmes and initiatives, it would be great to have a clear picture of the resources that have been ploughed into them and the returns they have produced over the years. One big challenge that we do not discuss often is the burdensome regulations SMMEs are often subjected to. For instance, the practice of extending wage agreements, which are often above the minimum wage, and done in bargaining councils, where small businesses have little to no representation and often cannot afford higher wages that bigger businesses are able to afford and pay. This has been an issue for quite some time and has proved many times to be an impediment to small businesses growing. While burdensome regulations are also problematic, it is important to speak to how the tender system and cadre deployment in this country contributes significantly to the failures of small businesses. SMMEs compete with big businesses on tenders. It is well known that the more connected you are, the better chances of your business is of being selected. Now, this is a system we need to start fighting against, and possibly do away with across all spheres of government. Even with South Africa being a democratic country for quite some time now, one could argue we are still undergoing a transition considering all the issues we face. I am of the view that when a country is still in its transitional phase, it will be plagued by issues of political instability and uncertainty, which could see potential foreign business enterprises staying away and not investing in SMMEs. Apart from the challenges mentioned, it is quite important to also highlight cashflow and general operational problems that SMMEs must deal with, including late payments from potential clients, big expenses to keep the business afloat as well as buying and keeping stock. According to research by University of the Western Cape, South Africa has a high start-up failure rate of about 70%-80% for small businesses in the first five years. Business confidence has fallen over the years too, and the situation has worsened now that the country is facing rolling blackouts, high inflation rates, while the recent Covid-19 pandemic did not make things any easier. The South African Reserve Bank’s announcement on Thursday of a further repo rate increase of 25 basis points, coming at a extremely difficult time, will not make it easier for SMMEs. There is also a need for South Africa to have a more inclusive economic system. In South Africa, we do not have a standard definition of what constitutes an SMME, and it is crucial to carefully consider an inclusive growth strategy that will channel the potential of small businesses, both formal and informal. As economies continue to develop and adjust to new circumstances, so too does the SMME sector in this country. This can be attested by the major economic events over the past ten years, including the global financial crisis in 2009, and new administrations (presidents Thabo Mbeki, Zuma and Ramaphosa). Thus, greater support and investment in small businesses remain crucial. Policy uncertainty is also increasingly becoming a factor, hence a rigorous monitoring and evaluation process from policymakers and government is crucial as this will help to systematically analyse the effects of current policies and the necessity to develop and implement new regulations that will speak to the political, socio and economic trajectory in this country. Ngqambela is a researcher at Rivonia Circle with interest in socio-economic research, policy and politics. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/opinion/smmes-importance-still-ignored/