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  • KWIKSPACE LEVEL 1 BBBEE STATUS DELIVERS TANGIBLE BENEFITS TO ITS CLIENTS

    Tracy Klückow | 25 August 2025 Africa's largest manufacturer of prefab and modular buildings Kwikspace offers proven capability and unmatched empowerment credentials. “Kwikspace is a tried and tested company that can meet the toughest African conditions. Our product range is broad, our national footprint is extensive and our innovation keeps us ahead,” says Kwikspace CEO and FD Dirk Steinberg. In an exclusive interview with Engineering News & Mining Weekly publisher Martin Creamer, he highlighted that by securing a Level 1 broad-based black economic empowerment (BBBEE) contributor status – one of the highest designations available in South Africa – Kwikspace offers clients real advantages, whether in tendering or preferential procurement. Being 82.5% black-owned and 56.5% black-women-owned, for Kwikspace, transformation is not just a compliance exercise – it is a business model that empowers clients, employees and communities alike. South Africa’s BBBEE framework was designed to drive inclusive growth and greater representation in business. For many corporates and public entities, choosing the right supplier is as much about meeting transformation goals as it is about securing reliable products and services. “Most of our clients, particularly in the public sector, require higher levels of empowerment credentials for tendering processes. We’re proud that Kwikspace can meet those requirements. For the private sector, the preferential procurement benefits are equally valuable, with clients receiving up to 135% recognition on their BEE scorecards when procuring from us,” elaborates Steinberg, emphasising that the company’s business model drives transformation across the value chain. Shareholding Reflects Confidence and Growth Kwikspace’s ownership structure was bolstered when Vulindlela Holdings and Lehumo Women’s Investment Holdings increased their stakes following the exit of private equity partners. Having already been minority shareholders since 2022, they recognised the growth trajectory and return on investment potential of the business. “This uplift in shareholding is testament to the confidence our shareholders have in the business and its future,” Steinberg notes. Transforming Skills Kwikspace’s transformation efforts are not limited to equity ownership. The company has embedded empowerment into its broader operations, from employee development to supplier partnerships. Through its on-site training centre, Kwikspace offers accredited courses, apprenticeships and bursaries. In the last financial year, 29 graduates qualified and several of them, along with some interns and artisans, transitioned into permanent roles. “Transformation must benefit more than just the shareholders. It must benefit employees, local suppliers and communities. We are proud that our model extends opportunities to many stakeholders, not only those within the business,” Steinberg stresses. On the procurement front, Kwikspace has mapped out its high-spend areas and deliberately prioritised compliant black-owned vendors. This ensures that its empowerment commitment resonates throughout its supply chain. The company’s senior executives have also invested personally in the business, ensuring they share directly in its successes. “Our management team has been together for many years. They don’t just design and execute strategy – they have skin in the game. That ownership fosters accountability and provides a strong succession plan for the business,” says Steinberg. Proven Solutions Across Africa With more than 50 years in operation, Kwikspace has built a reputation for delivering modular solutions that meet Africa’s toughest conditions. Its projects range from massive 12 000 m² mining camps to small guardhouses, with applications in education, healthcare, government and commercial sectors. The company’s product offering includes classrooms, offices, kitchens, ablution facilities and living quarters – all designed to be safe, durable and adaptable. Beyond manufacturing units for sale, Kwikspace also runs the largest modular rental fleet in South Africa, supported by a national footprint that allows it to serve clients across the country. Driving Kwikspace’s ability to deliver is a culture of innovation. Its manufacturing facilities continuously refine designs, ensuring products are safer, stronger and smarter. “Innovation is part of who we are. Our factories don’t just produce units, they test and improve them constantly. That’s how we’ve managed to remain competitive and reliable over five decades,” concludes Steinberg. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/kwikspace-level-1-bbbee-status-delivers-tangible-benefits-to-its-clients-2025-08-22

  • PAUL MASHATILE CALLS FOR URGENT SOLUTIONS TO SOUTH AFRICA'S YOUTH UNEMPLOYMENT CRISIS

    Wendy Dondolo | 24 August 2025 Deputy President Paul Mashatile has urged government, business, and civil society to take “radical” action in addressing South Africa’s unemployment crisis, warning that the situation is most severe among young people who are not in employment, education, or training. Speaking in his capacity as chairperson of the Human Resource Development Council (HRDC) at the Gallagher Convention Centre in Johannesburg on Friday, Mashatile welcomed the new Minister of Higher Education and Training, Buti Manamela, while outlining the scale of the country’s jobs crisis. “We are meeting here today after a harsh reality was revealed by Statistics South Africa that the unemployment rate climbed once again to 33.2% , meaning one-third of the workforce is sitting without a job, the majority of whom are youth, women, and marginalised groups,” he said. Mashatile stressed that the “crisis of youth unemployment is particularly severe” among the NEET cohort, young people who are not working, studying, or training. “According to Statistics South Africa’s first-quarter release of 2025, 34% of all youth aged 15 to 24, more than 3.5 million young people, are disconnected from both the labour market and the education system,” he said. Citing research by the University of Cape Town’s Southern Africa Labour and Development Research Unit, Mashatile said the NEET population reflects entrenched exclusion and fragile transitions. “Alarmingly, more than half of unemployed youth not in employment, education and training have been searching for work for over a year, underscoring the systemic barriers they face in securing a foothold in the labour market,” he added. He said the HRDC must play a leading role in addressing these challenges. “The future of the youth of South Africa is in our hands, and we must be radical in securing it!” Mashatile called for urgent collaboration across sectors to ensure that education and training align with economic needs. “We must adopt a proactive stance and address the disparity between labour supply and demand. We must create a labour market that will effectively create employment opportunities for young people, including those with no skills,” he said. Among the strategies he proposed were: Strengthening education and skills development to better match market demand. Supporting small businesses and entrepreneurship as drivers of job creation. Expanding public employment programmes to absorb young people with limited skills. Enhancing workplace-integrated learning and mentorship opportunities through partnerships with business. Mashatile also welcomed the successful launch of provincial HRDCs in North West and Mpumalanga, saying provincial councils play a vital role in the implementation of the HRD Strategy and achieving our objectives. On the global stage, Mashatile said South Africa’s role in the G20 Education Working Group would be vital for shaping resilient and inclusive education systems. “As a host country, we have the chance to support emerging market economies’ objectives while also promoting the African continent's development agenda within the G20 framework,” he said. “For us to take our country forward, we must focus on the discipline of execution. We have at this stage mastered the art of policy making; however, some of these policies are not coming alive in the areas where they are needed to transform the lives of South Africans and the youth in particular.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/news/south-africa/2025-08-22-paul-mashatile-calls-for-urgent-solutions-to-south-africas-youth-unemployment-crisis/

  • RAMAPHOSA LEANS ON JAPAN AS GATEWAY OUT OF US TARIFF QUAGMIRE

    Banele Ginidza | 22 August 2025 President Cyril Ramaphosa has lauded Japan’s willingness to adjust tariffs for its strained partners, viewing it as a significant opportunity for deeper bilateral tariff cooperation in a bid to bolster South Africa's international trade in the face of evolving global tariffs. Speaking at the South Africa-Japan Business Forum on the margins of the 9th Tokyo International Conference on African Development (TICAD9) Summit in Yokohama on Thursday, Ramaphosa said Japan is a key pillar in South Africa's outreach. Ramaphosa made clear South Africa's readiness to engage in strategic sectors such as battery minerals, automotive components, renewable energy equipment, and hydrogen technologies. He outlined how his government has swiftly activated diversification strategies in the wake of recent tariff decisions by the United States that have challenged South Africa’s historical reliance on certain markets. "The recent tariff decisions by the United States have tested South Africa’s reliance on historical markets. We call on our Japanese counterparts to support tariff cooperation to ease market access for African goods," Ramaphosa said. "We seek partnerships in infrastructure, energy and digital development through blended finance. We also seek partnerships in financing skills development, youth innovation and small business scaling." Ramaphosa highlighted the impressive growth of trade between South Africa and Japan, which reached R132 billion in 2024, resulting in a R52bn trade surplus for South Africa. South Africa is a leading global supplier of strategic and industrial minerals used in Japan’s green tech industries. South Africa exports automotive components to Japanese auto manufacturers across global supply chains, chemicals and polymers, and stainless steel and fabricated metal products. More than 270 Japanese companies have a notable presence in the South African economy, sustaining over 200 000 local jobs.  Ramaphosa emphasised that the nation was modernising infrastructure and stabilising energy supply, paving the way for private sector investment in port and rail operations. As part of its industrial policy, Ramaphosa said South Africa aims to enhance trade with key countries and improve market access for both agricultural and industrial products. He said the government was particularly focused on its proactive role in the African Continental Free Trade Area (AfCFTA).  "We are incentivising electric vehicles and battery production, and supporting green hydrogen value chains through infrastructure and skills investment. South Africa is growing its health manufacturing capacity, with a focus on vaccines, diagnostics and therapeutics," Ramaphosa said.   "Our country is also expanding digital infrastructure to bridge gaps in access and enhance service delivery. South Africa seeks to deepen intra-African trade while becoming a continental industrial platform from which Japanese and other global firms can export into Africa. "We are actively working with the AfCFTA Secretariat to finalise value-chain protocols in automotive, agro-processing, pharmaceuticals and textiles." Piet Croucamp, an associate professor of political studies and international relations at the North-West University, commented on the trade dynamics with Japan, suggesting that it makes sense to expand South Africa's market share in Japan due to its relatively small percentage of Japanese international trade, making it a stable and predictable market. "They are a very stable, very predictable market for most of our goods and services, which are more or less from time to time depending on the cycle in the international economy. It's a good visit, it's a massive, enormous market, very vast and its possible to broaden our scope of trade with them," Croucamp said. "It just makes sense for us to trade in an environment where tariffs are not determining the volumes and that is the case with Japan." On the other hand, political analyst Professor Andile Siswana pointed out challenges in energy security within the Southern African Development Community (SADC), noting the need for South Africa to stabilise its Energy Availability Factor from the current 61% to at least 70%. "There are big questions about energy security in the SADC region as a whole including South Africa, the President should have been clear as to whether in that domain there is any specific scope for collaboration," Siswana said. Additionally, Siswana said Ramaphosa needed to have clarified how incentives to the Electric Vehicles (EVs) sector linked up with Japan, which was not wholly into EVs. "Obviously, Toyota is into hybrids engines. The optimum, they believe, is in hybrid not exclusively electric vehicles. They don't believe EVs surpass that. There is a big controversy at the moment around that," Siswana said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business-report/economy/2025-08-22-ramaphosa-leans-on-japan-as-gateway-out-of-us-tariff-quagmire/

  • EDUCATION MINISTER BUTI MANAMELA ACTS AGAINST THREE EMBATTLED SETAS

    Sisanda Mbolekwa and Sabelo Skiti | 19 August 2025 Training authorities for local government, construction and services placed under administration. Higher education and training minister Buti Manamela has taken action against three embattled sector education and training authorities (Setas), placing them under administration. They were gazetted on Tuesday after years of corruption and mismanagement, as well as serious rot reflected in the auditor-general's reports uncovering various irregularities. This intervention follows serious and entrenched governance failures in these entities, including procurement irregularities, lapses in oversight and board instability, which threatened their ability to deliver on their mandate to advance skills development. “This decision marks the first step in stabilising eta governance. We cannot allow governance failures to erode the public’s confidence in our skills development system. “These administrators have a clear mandate to restore integrity, enforce consequence management where necessary and ensure that learners and workers are not prejudiced by institutional weaknesses. Our goal is to reposition Setas so they can contribute effectively to the fight against unemployment, poverty and inequality,” said Manamela. Meant to address skills shortages and improve the overall quality of education and training in South Africa, the entities have been riddled with corruption and maladministration, with poor accountability leading to millions spent with little to show for it. The Local Government Seta (LGSeta), the Construction Education and Training Authority (Ceta) and the Services Seta (SSeta) faced the chopping block, with their operations taken over by administrators appointed by the minister.  Zukile Christopher Mvalo was named the LGSeta administrator, with Dithabe Oupa Nkoane as the Ceta head and Lehlogonolo Alfred Masoga taking over at the SSeta. Their tenures as administrators will last a year. They are to oversee the running of their respective Setas, performing functions such as ensuring sufficient funding for the processes and activities. The minister has also charged them with submitting monthly progress reports to the director-general. Key to their task is facilitating the appointment of new accounting authorities at the three entities. Last month this publication reported how finance minister Enoch Godongwana warned his former cabinet colleague Nobuhle Nkabane about malfeasance at the LGSeta three months ago, saying that the process to appoint CEO Ineeleng Molete was beset with irregularities and possible criminal conduct. The information had come to light during an investigation by the National Treasury’s specialised audit services after a tip-off from a whistle-blower. As a consequence, all remuneration earned by Molete since his appointment would amount to irregular expenditure as defined in section 1 of the Public Finance Management Act (PFMA). According to a parliamentary reply in January 2023, the CEO of the LGSeta earns R2.5m a year. Molete was appointed in January 2021, so his earnings since then could amount to at least R11m. Godongwana told Nkabane the Treasury had also uncovered irregularities in the dissolution of the LGSeta’s audit & risk committee by the board. While Godongwana did not give details in his letter as to why Molete’s appointment was irregular or what irregularities had been uncovered in the dissolution of the board, he recommended that Nkabane take disciplinary action against the members of the selection and interview panel that oversaw Molete’s appointment. In the Ceta, more than R13m has allegedly been siphoned out of the embattled entity through two contracts meant to provide and administer a biometric system designed to combat fraudulent learner enrolments in training programmes. At least R6m of this was paid by the Ceta to joint venture EZG Vest and Coinvest Africa to administer the system, despite a warning by the auditor-general (AG) and an internal whistle-blower that there were irregularities in the appointment process. The other R7.1m was paid to Grayson Reed, a company appointed by the Ceta in 2018 to provide the system, which included biometric scanners and a portal to keep track of learners' attendance and automatically link it to payment of stipends.  The biometric system was meant to verify the identities of learners and ensure that only registered individuals participated in Ceta-funded training programmes. It would have been integrated with Ceta’s Indicium management information system, which is used for registering learners and managing training data, Ceta said on its website.  Despite the system never being operational, Ceta, under CEO Malusi Shezi, proceeded to make monthly payments to the joint venture, essentially for operating a non-existent system, between March 2022 and July 2023 as part of a R50m contract awarded to the two companies in 2021. The payments stopped only after Coinvest became embroiled in a tender controversy at the National Student Financial Aid Scheme (NSFAS), where it was one of four companies awarded a multibillion-rand contract to make direct payment of students’ allowances into their bank accounts. Each company was meant to make R330m in profit during the five-year contract, but the tender was stopped after irregularities were picked up in the procurement process. Among them were that none of the companies had a banking licence and all were relatively new to fintech and could not demonstrate adequate experience in the field. Then NSFAS CEO Andile Nongogo was also found to have had a previous relationship with Coinvest, after overseeing the awarding of equally controversial business to one of its directors, Tshegofatso Ntumba, while he was CEO at the SSeta. Nongogo took special leave and was eventually fired from NSFAS. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/politics/2025-08-19-education-minister-buti-manamela-acts-against-three-embattled-setas/

  • WARNING ABOUT TECH INDUSTRY RACE AND GENDER EMPLOYMENT QUOTAS IN SOUTH AFRICA

    Jan Vermeulen | 19 August 2025 The Information and Communications Technology sector faces unique challenges that may impact companies’ ability to comply with the Department of Labour’s newly introduced employment equity targets. That is the warning from Capital Appreciation chairman Michael Pimstein in the company’s integrated annual report regarding employment quotas, which the department published on 15 April 2025. “South Africa’s tech industry is grappling with a critical talent shortage, particularly in specialised roles such as software engineering, cybersecurity, data science and machine learning,” Pimstein said. Adding to the shortage is that South African skills have become a prime target for international organisations looking for quality software engineering at a competitive cost. “The availability of qualified candidates from designated groups remains limited, necessitating more strategic planning and workforce development,” said Pimstein While the regulations assure that affected employers will not incur penalties or any form of disadvantage if there are reasonable grounds for not complying with the targets, it is unclear what “reasonable grounds” means. The labour department also stated that reasonable grounds will be determined based on the assessment of affirmative action compliance in a workplace. “We believe that workable solutions can be found through collaboration between the government, industry stakeholders and educational institutions to expand skills development programmes,” said Pimstein. “A phased implementation of the EE targets with periodic reviews, along with incentivising compliance through tax incentives, grants and subsidised training programmes, will encourage sustainable transformation.” “Designated groups” is a collective term and euphemism that the labour department uses to refer to black people, women, and people with disabilities. In this context, “black” means African, Coloured, and Indian. Curiously, the regulations do not mention people of Chinese descent. According to the B-BBEE Commission, Chinese people born before 1994 are considered black for the purposes of B-BBEE. To be considered part of a designated group, a person must also be a South African citizen by birth, descent, or naturalisation. People who naturalised must have done so before 27 April 1994. Those who naturalised after 26 April 1994 can qualify if they would have been entitled to naturalise before then but were precluded by apartheid policies. ICT sector employment quotas Although the regulations do not give the non-designated group a formal name, the department expressly states who is considered designated and who is not. “The 5-year sectoral numerical targets are not intended to add up to 100% as they exclude white males with no disabilities and foreign nationals as part of the workforce profile,” it explained. The regulations state that within five years, no more than 8.3% of skilled technical workers in information and communications technology (ICT) may be white South African men or foreigners. Similarly, the proportion of white men and foreigners permitted to be in middle management and professional qualified roles is restricted to 23.2%. The regulations set out specific racial and gender-based quotas for businesses across 18 industries in South Africa to achieve over the next five years. The ICT sector targets are summarised below. R2.7 million fines and job cuts The Department of Employment and Labour said its goal was to ensure the equitable representation of suitably qualified people from designated groups at all occupational levels in the workforce. However, analysts, civil society groups, and the Democratic Alliance have warned that the quotas will cause widespread job losses rather than achieving the department’s goals. Since the quotas only apply to “designated employers”, which are companies with 50 or more employees, they argued that many will consider cutting staff to fall below the thresholds. Larger businesses might consider restructuring and laying off people in certain demographics where they are over-represented. Law firm Wright Rose-Innes has warned that companies face stiff fines if they do not start complying from 1 September 2025. Failure to comply with the requirements could result in fines of up to R2.7 million, or 10% of their annual turnover. Wright Rose-Innes explained that companies must have updated Employment Equity Plans in place that span from 1 September 2025 to 31 August 2030. Designated employers must also submit annual reports on their progress to the Director-General. Compliance is not optional, especially for businesses hoping to work with the government. “All employers intending on conducting business with an organ of state will be required to, amongst other things, comply with the targets and implement their Employment Equity Plan,” Wright Rose-Innes said. “They must also obtain a compliance certificate, valid for 12 months, to avoid termination of their agreement with the state.” Sakeliga, the National Employers Association of South Africa, and the Democratic Alliance have launched legal challenges to the Employment Equity Amendment Act, saying it is flawed and unconstitutional. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/business/607401-warning-about-tech-industry-race-and-gender-employment-quotas-in-south-africa.html

  • SA MINING SECTOR BURNISHES TRANSFORMATION CREDENTIALS AS BATTLE LOOMS OVER DRAFT BILL

    Ed Stoddard | 18 August 2025 The mining industry is arming itself with facts before what may be a long slog as it pushes for changes in the draft Mineral Resources Development Bill. South Africa’s mining sector is digging in for lengthy talks with the Department of Mineral Resources and Energy over the contentious draft Mineral Resources Development Bill (MRDP). The Minerals Council SA, the main umbrella group for the industry, maintains that the bill has many shortcomings that will discourage investment and job creation. The council lodged an extensive submission on the draft bill before the 13 August 2025 deadline. “It is of fundamental importance for the Minerals Council that the bill creates certainty, predictability and a competitive regulatory environment, while eliminating ambiguity in what will become the act to ensure we build on the successes we have had to date,” the council said in a statement on Monday, 18 August 2025.  At a media briefing, Mzila Mthenjane, the CEO of the Minerals Council, said the industry would be engaging with the department on the bill in what was expected to be a marathon rather than a sprint. “We will not negotiate the bill in public… It will take time. It will be a lengthy process,” he said. “We will take it one step at a time, but from the progress we have seen so far in submitting our detailed submission I think there’s a possibility that we can avoid seeing ourselves in court.” Not negotiating in public means that the council is keeping its specific concerns under wraps for now, though when the bill was first flagged in May it did raise alarms over the failure to exclude BEE requirements for exploration. That has since been amended.  “The Minerals Council’s overarching concern with the bill is that in its current form it does not encourage investment in the industry for growth. Its reliance on regulations that have yet to be published for public scrutiny make it impossible to fully engage the department in detail on key elements of the bill,” the council said.  Like a miner without a headlamp, this means that the industry is groping in the dark.  What this means for the industry Regulatory clarity is crucial for investment in the mining sector. Without investment, there is no mining and no transformation in the sector. A lengthy engagement where both sides display compromise would be the best outcome. Otherwise it will probably end up in court — and the regulator usually loses on that front. In a presentation, the council said key areas of broad focus and contention included transformation and empowerment — subjects that have long been bones of contention in post-apartheid South Africa.  On that front, the Minerals Council produced a new factsheet to burnish its transformation credentials. Historically disadvantaged South Africans now have a 39% ownership stake in the mining sector, far above the 26% target. Much of this stems from pension funds.  “In 2023, a study on employment equity and human resource development showed women now make up 19% of the full-time workforce, with ongoing efforts to improve representation and safety,” the factsheet reads.  “Through Social and Labour Plans (SLPs), the mining sector invests more than R3-billion annually in community development — far exceeding the 1% Net Profit After Tax benchmark in other sectors — funding schools, roads, clinics, water and sanitation projects, and much more.”  In the presentation, one chart showed that monthly per capita earnings for miners have soared about six-fold the past 20 years to more than R30,000.  The industry is arming itself with facts before what may be a long slog. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2025-08-18-sa-mining-sector-burnishes-transformation-credentials-as-battle-looms-over-draft-bill/?dm_source=dm_block_grid&dm_medium=card_link&dm_campaign=business-maverick

  • PRACTICE GUIDE 01 of 2022

    The B-BBEE Commission has over the years continued to be inundated with requests from various stakeholders to confirm validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates, which process has resulted in the B-BBEE Commission issuing a number of advisory letters to the affected entities to advise of invalidity of such documentation and the need to withdraw the invalid B-BBEE Verification Certificates, Sworn Affidavits or CIPC EME B-BBEE Certificates.   Thus, the purpose of this Practice Guide  was to set out the approach for stakeholders to determine the validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates for consistency.   This Practice Guide  replaced Practice Guide 01 of 2018 as of 01 November 2022.   Certificate Collection Services  are available to in understanding the validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates.

  • EXPLANATORY NOTICE 02 OF 2024

    In terms of section 13F (3) Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013, the Broad-Based Black Economic Empowerment Commission, must increase knowledge of the nature and dynamics and promote public awareness of matters relating to Broad-Based Black Economic Empowerment   One of the ways in which the Broad-Based Black Economic Empowerment Commission delivers on the abovementioned mandate is by providing guidance to the public by issuing of non-binding opinions on the interpretation of any provision of the Broad-Based Black Economic Empowerment Act as directed by the provisions of section 13F(3)(b)(ii) of the same Act.   This Explanatory Notice  replaces Explanatory Notice 01 of 2016 effective from date of issue.   Technical Services  are available for Members who need assistance with understanding Advisory Opinions.

  • EXPLANATORY NOTICE 01 OF 2024

    The Broad-Based Black Economic Empowerment Commission has published Explanatory Notice 01 of 2024 in August 2024.   This Explanatory Notice  is issued in terms of section 13F(3)(b)(i) of the Broad-Based Black Economic Empowerment Act to guide the parties/entities regarding the process and documents to be submitted in registering a Major B-BBEE transaction to comply with the requirements of the Broad-Based Black Economic Empowerment Act, including regulation 18 of the B-BBEE Regulations of 2016.   This Explanatory Notice  replaces Explanatory Notice 1 of 2017 effective from date of issue   Technical Services  are available for Members who need assistance with understanding Major B-BBEE Transactions.

  • US DEMANDS SPARK GROWING DISCONTENT AMID TARIFF NEGOTIATIONS – REPORT

    Molefe Seeletsa | 17 August 2025 The US has reportedly set conditions to restore relations. Ministers for the two largest parties, ANC and DA, in the government of national unity (GNU) are said to be growing increasingly frustrated as the US continues to make more demands during ongoing tariff negotiations. South Africa is in talks with Washington in the hope of securing a deal that would see the steep tariffs imposed by the US reduced. Earlier this month, President Donald Trump’s administration introduced a 30% tariff on all South African exports to the US. Although Trump had initially delayed implementation for 90 days in April to allow for negotiations, the tariffs officially came into effect last week. The trade standoff comes amid broader tensions between the two countries. These include South Africa’s case against Israel at the International Court of Justice (ICJ), policies such as broad-based black economic empowerment (B-BBEE) and the Expropriation Act, as well as claims of the persecution of Afrikaners. US makes further demands to SA amid tariff talks In June, Freedom Front Plus (FF Plus) leader Corne Mulder travelled to the US and later returned claiming that the White House officials his party engaged with had set conditions to restore relations. The conditions allegedly set out by US officials included exempting US companies from B-BBEE, allowing land expropriation with compensation, a public condemnation of the “Kill the Boer” chant and treating farm murders as a priority crime. According to City Press , the US has further requested that South Africa grant visas to 30 Kenyans linked to Resettlement Support Centre Africa (RSC Africa), an organisation that has worked with the US for over two decades to assist prospective refugees. These individuals would reportedly help facilitate the resettlement of Afrikaners. This latest demand has added to South Africa’s frustration, with the government reportedly expressing its dissatisfaction informally. Ramaphosa’s administration is also displeased with delays in receiving responses to its trade proposals. However, the government has reportedly remained firm in its refusal to get rid of any of its policies. New trade proposal South Africa recently submitted a revised offer to Washington aimed at reducing the 30% tariff. The proposal builds on one put forward in May and specifically addresses issues raised by the US in the 2025 national trade estimates report. Deputy President Paul Mashatile also announced that another delegation will soon be sent to the US to push for better terms. Earlier efforts included a high-profile May visit to the White House led by President Cyril Ramaphosa and joined by Cabinet ministers, Cosatu President Zingiswa Losi, businessman Johann Rupert and professional golfers Ernie Els and Retief Goosen. Ramaphosa also recently held a phone call with Trump in an attempt to ease tensions. In addition, the government has introduced support programmes that will help offset the 30% tariff. Some of South Africa’s exports will remain exempt. These include products like copper, pharmaceuticals, semiconductors, critical minerals, stainless steel scrap and energy-related products. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/news/us-tariff-negotiations-south-africa-afrikaners/

  • ELON MUSK’S STARLINK BACKS BEE EQUITY EQUIVALENTS, NOT 30% OWNERSHIP

    Gugu Lourie | 18 August 2025 Elon Musk’s SpaceX’s satellite internet venture, Starlink, has formally endorsed South Africa’s proposed Broad-Based Black Economic Empowerment (B-BBEE) policy reforms, advocating for Equity Equivalent Investment Programmes (EEIPs) as an alternative to the mandatory 30% black ownership requirement for telecom license holders. In an exclusive written response obtained by TechFinancials, Ryan Goodnight, Senior Director of Starlink Market Access, stated: “SpaceX commends the Department for this timely policy direction and welcomes the opportunity to discuss our response with the Department at your earliest convenience.” The statement follows SpaceX’s submission to the Independent Communications Authority of South Africa (ICASA) regarding its Proposed Policy Direction on B-BBEE alignment in the ICT sector, published on 23 May 2025. The policy seeks to harmonise ICASA’s Ownership Regulations with the ICT Sector Code, which permits EEIPs, a model that allows foreign companies to contribute to economic transformation without relinquishing direct equity. Why Starlink supports Equity Equivalents over 30% ownership 1. Regulatory clarity and foreign investment Starlink argues that misalignment between ICASA’s regulations and the ICT Sector Code creates uncertainty for investors. Currently, ICASA requires telecom license applicants to: Be South African-registered entities (SA Requirement). Achieve at least Level 4 B-BBEE contributor status (BBBEE Requirement). Have 30% equity owned by historically disadvantaged individuals (Ownership Requirement). However, the ICT Sector Code, governed by the B-BBEE Act, recognises EEIPs as an alternative for multinational corporations that cannot transfer ownership. Goodnight emphasized: “Harmonising the regulations with the ICT Sector Code will provide clarity regardingthe obligations that apply to both emerging market participants and existing operators. “This harmonization encompasses the acknowledgment of equity equivalent investment programmes, which play a vital role in incentivising investment in South Africa by international operators, while also recognising transactions and structures that have shown success under the ICT Sector Code.” The company added that for clarity – SpaceX supports (and does not seek any amendments to) the South Africa requirement or the BBBEE requirement. 2. Global precedent for Equity Equivalents EEIPs are not new in South Africa. Major firms like Microsoft, Google, and Cisco have previously used this model to comply with B-BBEE without diluting ownership. These programmes typically fund: Skills development (training, scholarships). Enterprise growth (supporting black-owned SMEs). Digital inclusion initiatives (low-cost internet access). Starlink contends that this approach is more practical for global operators, as forcing foreign firms to sell 30% equity could deter investment in critical broadband infrastructure. “The Policy Direction appropriately directs ICASA to urgently consider alignment of its Ownership Regulations with the ICT Sector Code,” Goodnight contends in a written response. “This alignment is both legally required and practically necessary to achieve South Africa’s broadband and empowerment objectives. “This alignment, and in particular the recognition of equity equivalent investment programmes, will provide much-needed regulatory certainty and foster investment in infrastructure essential for bridging the digital divide. “This approach is consistent with the global nature of multinational corporations’ operations and provides an avenue for alternative ways to impact South Africa’s socio-economic development.” 3. Economic Benefits of Broadband Expansion The policy direction cites World Bank research showing that a 10% increase in broadband penetration correlates with a 1.21% GDP growth in middle-income countries like South Africa. Despite this, South Africa ranks: 52nd globally for mobile internet speeds. 100th for fixed broadband speeds. Starlink’s low-orbit satellite technology could help close this gap, particularly in rural and underserved areas, where traditional ISPs struggle to deploy infrastructure. Legal and political controversy EFF opposition and sovereignty concerns The Economic Freedom Fighters (EFF) have vowed to challenge the policy in court, arguing that exemptions for Starlink undermine B-BBEE’s transformative goals. In a statement issued in May, the EFF said: “Granting special exemptions to billionaires like Elon Musk compromises South Africa’s sovereignty and economic empowerment agenda.” Legal basis for Equity Equivalents Starlink’s submission highlights that: The Electronic Communications Act (ECA) allows ICASA to impose alternative empowerment mechanisms (Section 9(2)(b)). The B-BBEE Act (Section 10) mandates that sector codes (like the ICT Sector Code) take precedence over conflicting regulations. ICASA’s strict 30% rule may contravene these laws by ignoring EEIPs. What This Means for South Africa’s Digital Future 1. Faster Internet Rollout If approved, the policy could accelerate Starlink’s entry into South Africa, providing: Affordable satellite broadband in remote regions. Competition to dominant ISPs like MTN, Vodacom, and Telkom. Could allow other satellite operators across the world to set up shop in South Africa. 2. Balancing Empowerment and Investment The debate reflects a broader tension in South Africa’s policy: Strict ownership rules may deter foreign investors. Flexible EEIPs could attract capital while still advancing B-BBEE goals. 3. Potential for Legal Challenges If ICASA adopts the policy, the EFF or other groups may seek judicial review, arguing that it weakens transformation efforts. Starlink’s push for regulatory alignment emphasises the challenges of balancing economic empowerment with foreign investment. The proposed policy direction could: Unlock billions in broadband investment. Expand internet access to underserved communities. Set a precedent for how South Africa regulates global tech firms. As the government finalises its decision, the outcome will shape not just Starlink’s future in South Africa—but the entire digital transformation of the country. All rules have their exceptions — in other words, it is the exception that proves the rule. This basic principle explains why SA’s rigid insistence on enforcing BEE compliance for Starlink amounts to economic self-sabotage. While Elon Musk’s dismissal of BEE as racial bias is misguided, the government’s refusal to grant operational flexibility to a transformative digital provider ignores SA’s deepening crisis, which includes stagnant GDP growth, mass unemployment and more than half of the population living in poverty. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2025/08/18/elon-musks-starlink-backs-bee-equity-equivalents-not-30-ownership/

  • NELSON MANDELA FOUNDATION CHAIRPERSON NALEDI PANDOR HIGHLIGHTS CHALLENGES FACING WOMEN IN SOUTH AFRICA

    Central News | 17 August 2025 Nelson Mandela Foundation Chairperson Naledi Pandor highlights challenges facing women in South Africa, stressing the need for more female entrepreneurs and access to economic power as she reflects on the legacy of the 1956 Women’s March. Johannesburg – Nelson Mandela Foundation Chairperson Dr Naledi Pandor says women in South Africa face many challenges that need to be addressed. Speaking alongside her daughter in a reflective discussion on the ongoing struggles of women, even after the historic Women’s March on 9 August 1956, Pandor pointed out the lack of economic power for women and called for greater support for female entrepreneurs. This comes amid broader concerns about gender inequality in the country, where women continue to battle poverty, limited education, and rural isolation. Pandor further highlighted that women do not enjoy access to economic power. She says the country needs more female entrepreneurs to provide support to women who wish to be in business. Pandor and her daughter were reflecting on the challenges that women still face even after the Women’s March on 9 August 1956. Pandor elaborates, “I think sadly, African women, Black women in particular, continue to face the triple challenges that we used to speak of when we were theorising the economics of apartheid: that they are Black, they are without skills, they are without high-level education, and they live primarily in rural areas. Those triple challenges impact negatively on women. I speak from the perspective of business as an entrepreneur; there is still a lot of work that needs to be done to support women who are building businesses.” Historical Context of the 1956 Women’s MarchThe Women’s March of 1956 remains a cornerstone of South Africa’s fight against apartheid and gender oppression. On 9 August that year, over 20,000 women from all races marched to the Union Buildings in Pretoria to protest against pass laws that restricted Black women’s movement and employment. Led by figures like Lilian Ngoyi, Helen Joseph, Rahima Moosa, and Sophia Williams-De Bruyn, the march symbolised unity and resistance. It paved the way for National Women’s Day, celebrated annually on 9 August, to honour women’s contributions to democracy. Pandor’s reflections tie directly to this legacy, noting how the “triple challenges” – race, lack of skills and education, and rural living – echo the apartheid-era barriers that the march sought to dismantle. Despite 30 years of democracy, these issues persist, with Black women bearing the brunt. Statistics from Statistics South Africa show that female unemployment stands at 35.5%, higher than the national average of 32.9%, and women in rural areas face even steeper hurdles, with limited access to jobs, education, and healthcare. Persistent Challenges for Women in South AfricaPandor’s comments shed light on deep-rooted inequalities that affect women across the country. Economic exclusion is a major barrier, with women owning only about 21% of businesses, according to the Commission for Gender Equality. This lack of economic power limits their ability to escape poverty cycles, support families, or invest in communities. Rural women, who make up a large portion of the population, often lack basic infrastructure like reliable water, electricity, and transport, which hinders business growth and education. Gender-based violence (GBV) adds another layer of hardship. South Africa has one of the highest rates of femicide in the world, with over 2,700 women murdered in 2023 alone, as per police data. Pandor, a former Minister of International Relations and Cooperation, has long advocated for women’s rights, drawing from her experience in global diplomacy where she pushed for gender equality in forums like the United Nations. Her role as foundation chairperson since 2024 allows her to focus on Mandela’s legacy of social justice, including empowering women. Education and skills gaps remain critical. While more girls enrol in school than boys, dropout rates are high due to teen pregnancies, poverty, and family duties. Only 23% of women hold tertiary qualifications compared to men, limiting their entry into high-paying fields like technology and engineering. Pandor, an academic with a background in education policy, stressed the need for targeted programmes to build skills and promote entrepreneurship among women. Call for More Female Entrepreneurs Pandor’s push for more female entrepreneurs aligns with national efforts to boost women’s economic participation. Initiatives like the Women Economic Assembly, launched in 2021, aim to connect women-owned businesses with supply chains in sectors like agriculture and manufacturing. However, challenges like access to funding persist – women receive just 10% of venture capital in South Africa, per a 2024 report from the African Development Bank. She urged society to support women in business, noting that successful female entrepreneurs can mentor others and create jobs. Examples include women-led cooperatives in rural KwaZulu-Natal producing crafts and food products, which have lifted communities out of poverty. Pandor’s daughter, joining the conversation, shared personal insights on navigating these barriers, adding a generational perspective to the discussion. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://centralnews.co.za/nelson-mandela-foundation-chairperson-naledi-pandor-highlights-challenges-facing-women-in-south-africa/

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