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Yuneal Padayachy | 5 February 2024 As South Africa moves into 2024, the landscape of Broad-Based Black Economic Empowerment (B-BBEE) is poised for significant shifts. The B-BBEE framework has been a cornerstone of economic transformation in our country, aiming to address historical imbalances and promote inclusive economic growth. In 2024, I am hoping to see the following taking place in the B-BBEE transformation space: Updated B-BBEE sector Codes of Good Practice: The B-BBEE Codes of Good Practice including for specific sectors, are subject to periodic reviews, and 2024 may see updates to these Codes of Good Practice especially aligning to the 2019 Amendments to the General B-BBEE Codes of Good Practice. Businesses should anticipate changes in scorecard elements, weightings, principles and compliance criteria. Staying abreast of the modifications will be crucial for companies striving to maintain or improve their B-BBEE status. Enhanced focus on implementation and monitoring: One of the primary expectations I hope to see for 2024 is an increased emphasis on the effective implementation and monitoring of B-BBEE initiatives. The notion of impactful B-BBEE initiatives needs to be instilled within the mindsets of B-BBEE practitioners and transformation managers. There is a need to place a stronger focus on ensuring that companies are actively working towards achieving the outlined B-BBEE goals and that the intended benefits are reaching the targeted Black beneficiaries. The shift from being transactional to transformational is a must. Increased collaboration and partnerships: Collaboration between businesses and stakeholders is expected to be a key theme in 2024. Companies may engage in strategic partnerships to pool resources, share best practices, and collectively work towards achieving B-BBEE objectives which will achieve larger impacts on the intended Black beneficiaries. Focus on skills development: Skills development has been a crucial pillar of B-BBEE, and in 2024, there may be an intensified focus on training and upskilling initiatives. I do foresee companies exploring more innovative approaches to skills development, including mentorship programmes, online training platforms, and partnerships with educational institutions to address the skills gaps in our country. Focus on job creation: South Africa still faces a large challenge in respect of unemployment. In 2024, I hope to see more collaboration between the public and private sector to address challenges of unemployment. From a B-BBEE perspective, it would be great to see more of an uptake of participation under the Youth Employment Service (YES) initiative in 2024 and giving a young people an opportunity to gain working experience. Inclusive procurement practices: Procurement is a significant component of B-BBEE, and 2024 is likely to witness a continued emphasis on inclusive procurement practices. Companies are encouraged to source goods and services from Black-owned and Black women-owned businesses focusing on small business as well. As South Africa looks ahead to 2024, the evolution of B-BBEE transformation is inevitable. Companies must proactively adapt to the changing landscape, embracing technology, fostering collaboration, and prioritising the holistic impact of their B-BBEE initiatives. The trajectory of B-BBEE transformation in South Africa for 2024 promises an array of pivotal changes and opportunities for businesses. As we anticipate updated B-BBEE Sector Codes of Good Practice, a pronounced emphasis on implementation and monitoring, increased collaboration, and a sharpened focus on skills development, job creation, and inclusive procurement practices, the landscape of empowerment and economic growth is set to undergo significant evolution. Businesses must be vigilant in staying abreast of these developments, ready to pivot and align their strategies to effectively navigate the shifting B-BBEE landscape. Embracing innovation, forging strategic partnerships, and committing to impactful initiatives will be integral in not just meeting compliance criteria but truly fostering inclusive economic growth and addressing historical imbalances. https://www.bizcommunity.com/article/great-expectations-for-b-bbee-transformation-in-2024-345498a

Piet Le Roux | 7 February 2024 Labour minister Thulas Nxesi's latest employment equity quotas are so weak and watered down that it actually reveals severe weakness in his department’s position. Employers are in a strong position to avoid and oppose further state interference in hiring processes. The new quotas, as contained in the minister's latest draft regulations, are intended to reflect the amended Employment Equity Act of 2023. This Act aims to empower the state to force businesses to hire employees according to the government's targets for race and gender. On paper, the state could even impose fines of up to 10% of turnover on companies that continue to hire employees freely.  In practice, however, the state’s efforts have been engulfed at every turn by its own decline and failure. Despite its claims to strong implementation capacity, the Department of Labour has shown itself unable to publish even a coherent set of regulations, let alone capable of enacting and enforcing the law.  Sakeliga opposes the entry into force of the Amendment Act as well as the draft regulations (see here for our statement on the Amendment Act). Although the latest regulations are also unacceptable and harmful for how they impede business growth and hiring, they represent a drastic setback for Minister Nxesi. In May 2023, in page after page filled with tables and percentages he proposed a multitude of quotas for men and women, subdivided for coloured, black and Indian persons, and then divided again over 9 provinces and 18 different "sectors". In the face of widespread domestic and international resistance, the Minister has now published the February 2024 version. Without any explanation, he has deviated drastically from his previous aspirations. The new version contains only national figures and no provincial breakdown, and only specifications for men, women and the disabled. Although it mentions "designated groups", there is no clarity in the regulations as to how this should be applied. This month's significant watering down indicates that the minister recognises the considerable problems with his planned policies. As Sakeliga's lawyers pointed out to the minister last year, his previous regulations would be defeated substantively as well as procedurally in a legal process. The new version may be different on the surface, but it has the same substantive and procedural problems as the previous one and should likewise be withdrawn. Sakeliga advises businesspeople to remain firm and not make any changes to their employment policies for the sake of the Amendment Act and the draft regulations. Given the minister's apparent willingness to make such wild swings in quota design, there is currently no clarity on what the final regulations are that he hopes to make, let alone the timelines by which he would be able to get them implemented. Opposition from the side of businesses and others has caused the state to retreat. This pressure must be maintained.  Both the amendment and the draft regulations remain highly contentious in litigation, unenforceable in practice, and altogether against the public interest. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/employers-are-in-a-strong-position-against-new-quo

Sisanda Mbolekwa | 7 February 2024 ActionSA leader promises to fix SA's economy, create jobs and crack down on crime if elected. South Africans are worse off today than they were six years ago, ActionSA leader Herman Mashaba said in his alternative state of the nation address (Sona) on Wednesday. Mashaba said the legacy of President Cyril Ramaphosa’s time in office was a rundown economy with rampant unemployment, crime, load-shedding and decaying infrastructure. “By almost every measure, South Africans are worse off today than they were six years ago. We cannot continue to vote for the same selfish leaders, election after election, and expect our country to improve. One cannot hope to do the same thing over and over again and expect a different outcome,” he said. He accused Ramaphosa of consistently making grand promises while delivering little. “To bring about positive change, we must be bold. We must be courageous. We must try something new. We must take action. We must look to a solutions-based alternative to challenge the failed political establishment.” Mashaba said his party wanted to fix the country by working with South Africans who want to make SA work. The party held its first national policy conference in September last year, bringing together more than 600 delegates to consolidate policy proposals as solutions to address the country’s problems. The party’s priority is economic prosperity, which comprises creating a conducive environment for economic growth and job creation through interventions that will stabilise the energy market, develop world-class economic infrastructure and improve the ease of doing business. “We will reform labour regulations to break the stranglehold of unions and make it easier to do business, to create millions of jobs and lift our people out of poverty. We will support SMMEs and ensure we remove the barriers to growth that prevent small businesses from succeeding.” The party said it is unapologetically in favour of black economic empowerment and the previously marginalised, but it rejects the B-BBEE Act of 2003 which has created tenderpreneurs for the politically connected while leaving others in poverty. “An ActionSA government will replace B-BBEE with a policy of inclusive economic empowerment that will empower all previously disadvantaged South Africans, as well as those harmed by 30 years of corrupt and incompetent government. “Inclusive economic empowerment, or IEE, is the first real alternative to BBBEE. It will directly address the legacy of apartheid by creating economic opportunity for all previously disadvantaged South Africans, not only the connected few.” On education, Mashaba said the government’s neglect is a grave injustice, robbing generations of the opportunity for a brighter future. “We will begin with the establishment of universal access to early childhood development (ECD) to ensure all South African children receive a foundation of quality education. ECD centres play a pivotal role in shaping future educational outcomes later in life.” The party said it will break the stranglehold unions exert over schools by implementing reforms to ensure the most qualified teachers are appointed to key positions. ActionSA believes it has what it takes to end load-shedding. After enduring nearly 17 years of rolling blackouts, Mashaba said little had been done by the ruling party to end the curse. “ActionSA will change this by ending Eskom’s monopoly and introducing competition into the electricity market. This will help drive down prices while increasing efficiency. “We will also incentivise private homes and businesses to install solar power, and will protect schools, police stations and hospitals from load-shedding to ensure front line services can continue uninterrupted.” The ActionSA leader vowed to clamp down on crime and corruption, saying no country can flourish and no economy can grow in a state of anarchy, chaos and lawlessness. “ActionSA’s approach to law and order aims to reinstate the rule of law by prioritising visible policing over VIP protection for politicians. This involves a comprehensive overhaul of the police service, instilling a sense of pride in the force, and rebuilding trust so criminals no longer operate with impunity. “We will review bail, parole and sentencing guidelines for severe offences such as rape, murder and drug trafficking.” Mashaba said another priority will be securing the country’s borders. “South Africa was built on the back of migrants. ActionSA wants the people of the world to come to South Africa, but they must do so legally and obey our laws once here. We will secure our borders while reforming our immigration system to make it easier for those who can contribute to our economy to enter legally. “We will clamp down on corruption and issuing of fraudulent documentation in the department of home affairs.” He also promised to expedite the deportation of undocumented criminals. Mashaba said his solutions will place the country on the path towards an inclusive and prosperous future. “They represent a major shift in the status quo that will empower millions of people to leave behind poverty and achieve their true potential. If implemented, these solutions will lead to safer communities, improved economic infrastructure and a prosperous country where everyone has equal access to opportunity.” ActionSA contested elections for the first time at local government level in 2021, receiving more than 550,000 votes. It is represented in six out of 278 municipalities across the country. This year will be the first time the party contests elections at national and provincial levels.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/politics/2024-02-07-herman-mashaba-says-sa-worse-off-than-six-years-ago/

Ntuthuzelo Nene | 7 Februarie 2024 In a pre-SONA engagement in Cape Town on Tuesday, President Cyril Ramaphosa said while government works on addressing unemployment, the youth should not be too picky when choosing jobs. CAPE TOWN - President Cyril Ramaphosa has urged South African youth not to be choosy when job opportunities present themselves. Ramaphosa engaged the youth of Belhar in Cape Town on Tuesday, to reflect on the three years since his administration launched the Presidential Youth Employment Intervention and the Presidential Employment Stimulus Programmes. Ramaphosa told the youngsters that the programmes had created at least 1.8 million job opportunities for the youth since they were launched. The president also promised the youth that government was making progress in addressing unemployment. Ramaphosa also shared a story on how he was introduced to the workforce many decades ago:  "I was in Standard 9, which is today's grade 11, I think. I walked door-to-door saying 'kan ek werk kry asseblief, net 'n vakansie werk?' and I got a job to pack boxes of cigarettes and boxes of sweets." The president said this taught him a lesson in hard work.  "That's why I encourage young people, don't just want to get an office job. Go and get any job, manual or otherwise, because it teaches you the discipline of work." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2024/02/07/go-and-get-any-job-because-it-teaches-you-the-discipline-of-work-ramaphosa-tells-youth

Abdu-Rahman Abrahams | 10 February 2024 South Africa has plenty of good policies and initiatives to promote economic empowerment, but historically disadvantaged groups, such as black females, may continue to be left behind without the requisite capital to fund their access. Thankfully, industry bodies are recognising the importance of enabling historically disadvantaged groups to thrive economically by introducing new initiatives specifically designed to empower these groups. An example of such an initiative includes the new codes from the Transport Sector Charter, set to be implemented from March 1, 2024. The codes have urged those in the industry to prioritise fostering broad-based black economic empowerment (B-BBEE) and diversity in the logistics sector, a sector crucial to the nation’s economic growth. According to the SA Road Freight News, the codes will impact all road freight operators and companies in South Africa rated under the current Transport Sector Codes. Companies must align their planning according to the new Transport Sector Codes or risk not receiving a compliant B-BBEE certificate. South Africa’s freight and logistics market is expected to grow significantly from 2024 to 2029 due to a substantial increase in online retail, according to a research study by Mordor Intelligence. According to Mordor, the South African freight and logistics market is estimated to reach $22.92 billion (R432bn) in 2024 and $30.56bn by 2029, growing at a Compound Annual Growth Rate (CAGR) of 5.92% during the forecast period. As this critical sector continues to grow and develop, it is essential that it embraces and facilitates transformation and empowerment to help fight economic inequality and promote inclusivity. At this critical juncture, investors can make a difference by going beyond financial transactions. What we need to move the needle to empower black women, an under-represented group, in economic empowerment transactions, is innovative funding mechanisms. This is because innovative funding models such as hybrid equity can play a significant role in accelerating economic transformation by funding the risk elements that traditional mechanisms cannot. For example, our funding model mitigates the risk for all involved parties by blending debt and private equity. It is this combination of debt and equity funding that allows a company to take up a direct interest in the business, giving it a say in the running of the company. Old Mutual Alternative Investments (OMAI), through its Hybrid Equity capability, a specialist in innovative financial solutions, recently announced a transformative R125 million preference share facility to Afropulse Group, a wholly black women-owned investment holding company, to restructure its funding, which is backed by an equity interest in Imperial Logistics South Africa, one of the country’s largest logistics firms. This facility was supported by Afropulse’s 6.56% shareholding in Imperial Logistics. Afropulse Group’s partnership with OMAI is a landmark agreement in our country’s journey towards economic inclusivity. This investment not only supports our stake in a vital industry, but also propels the agenda of black women’s ownership in the South African economy. The strategic move also aligns with the goal of fostering broad-based black economic empowerment and diversity in a sector crucial to the nation's economic growth. In addition to promoting equity ownership, the deal represents a strategic restructuring and replacement of existing funding, showcasing how expertise in executing complex structured equity funding transactions can make a difference. This restructuring will optimise Afropulse Group’s capital structure, further solidifying its position in the logistics sector. Despite challenging economic conditions, this investment demonstrates continued confidence in South Africa's strategic logistics sector. In 2021, Hybrid Equity concluded a B-BBEE deal to assist in funding the Afropulse Group’s acquisition of a 6.56% shareholding in Imperial Logistics. As part of the overall transaction, Hybrid Equity provided preference share funding of approximately R112m as part of a junior quasi-equity-related funding package. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/old-mutual-innovative-funding-solutions-can-bolster-black-female-ownership-f8f13369-0109-4e69-8c43-a2c76aa6d0ee

Kamogelo Moichela | 12 February 2024 Gauteng Premier Panyaza Lesufi has extended the employment contracts of 32,000 youth brigades under the Nasi iSpani mass recruitment programme. The individuals will work as teacher assistants in schools across Gauteng. Their roles include Education Assistants (EA), General School Assistants (GSA), and Early Childhood Development Assistants (ECDA) in schools. Lesufi handed over the appointment letters to the job-seekers who packed the Dobsonville Stadium in Soweto, Johannesburg on Sunday. These are individuals whose contracts ended last year. “These are young people who were recorded by a national government and their contracts came to an end. We felt that we can’t have 32,000 people unemployed when they have done so well,” he said. Addressing the crowd, the premier said young people should not depend on grants and handouts, instead, they must work for themselves, earn their salaries, and contribute to the province’s economic development and growth. “Social development department, you can keep your social grants, we are employing them,” he said. This is as Lesufi continued to fulfil his long-standing promise to create jobs for young people in the province since his inception as the premier. This is the third biggest public handover of appointment letters to date since last year. Lesufi has so far handed over more than 90,000 employment letters to the unemployed youth, including the Gauteng Crime Prevention Wardens “AmaPanyaza” who are now training under the supervision of the South African National Defence Force (SANDF) to fight crime in the province. However, the premier dismissed claims that this was an electioneering campaign, saying the drive was aimed at tackling unemployment in the province. “It’s unfortunate if people say it’s election work. We just want to give these people an opportunity rather than for them to join the unemployment queue. “What is strange is that everyone in their manifesto talks about fighting unemployment, but when you do that they also accuse you of electioneering,” he said. Lesufi added that their mission was to make sure that the youth of Gauteng got opportunities to improve their lives and skills. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/you-dont-need-social-grants-you-need-jobs-gauteng-premier-lesufi-hands-over-30000-appointment-letters-df9b1aea-5db5-4c30-ada4-502d114a6ccc

Jacques van Wyk | 12 February 2024 On 1 February 2024, the Minister of Employment and Labour, Thembelani Waltermade Nxesi, (“Minister”) published, by way of Government Gazette, the draft regulations on proposed sectoral numerical targets (“2024 Draft Regulations“). The amendments made to the Employment Equity Act, 1998 (“EEA“) enacted in 2023 were accompanied with two sets of draft regulations, published in 2018 and 2023 respectively. The Regulations in Brief The Draft Regulations have been published for public comment in preparation for the commencement of Section 15A of the Employment Equity Amendment Act No 4 of 2022 (“EE Amendment Act”). Section 15A of the EE Amendment Act provides that – (1) The Minister may, by notice in the Gazette, identify national economic sectors for the purposes of this Act, having regard to any relevant code contained in the Standard Industrial Classification of all Economic Activities published by Statistics South Africa . (2) The Minister may, after consulting the relevant sectors and with the advice of the Commission, for the purpose of ensuring the equitable  representation of suitably qualified people from designated groups at all occupational levels in the workforce, by notice in the Gazette set numerical targets for any national economic sector identified in terms of subsection (1). (3) A notice issued in terms of subsection (2) may set different numerical targets for different occupational levels, sub-sectors or regions within a sector or on the basis of any other relevant factor. (4) A draft of any notice that the Minister proposes to issue in terms of subsection (1) or subsection (2) must be published in the Gazette, allowing interested parties at least 30 days to comment thereon. The draft regulations include further information regarding the following: a) legislative requirements for the setting of sectoral numerical targets; b) a list of Economic Sectors; c) setting of 5-year sectoral numerical targets and (d) the implementation of affirmative action measures. Some important points to note about the 2024 Regulations (a) Sectoral targets Designated employers will be measured against annual targets set in reaching the five year sectoral numerical targets. The targets are to be set for all population groups in the four occupational levels where there is an under representation in relation to the economically active population (“EAP“). The targets are combined for designated groups per sector (i.e., they do not specify for African, Coloured, Indian and White), while providing specific targets for each gender. This does not mean, however, that designated employers are not still required to set targets in other occupational levels as required by the applicable provisions of the EEA. The national EAP shall apply to designated employers conducting their business / operations nationally and the respective provincial EAP shall apply to designated employers conducting their business / operations provincially. While a designated employer can choose whether to use a national EAP or a provincial EAP, the designated employer cannot use national and provincial EAP at the same time. A designated employer who operates in more than one province and chooses to use the provincial EAP may choose the province with the majority of employees. A designated employer who operates in more than one sector may choose the sector in which the majority of employees. The proposed sectoral numerical targets are not meant to equal 100% as they exclude, for instance, sectoral targets. (b) Affirmative action measures The 2024 Draft Regulations emphasize that no absolute barrier may be placed on any employment practices. In addition, no employer will incur penalties or any form of disadvantage if in the compliance analysis of affirmative action in any workplace there are justifiable / reasonable grounds for non-compliance. Furthermore, an employee’s employment cannot be affected as a consequence of affirmative action. The 2024 Draft Regulations provide a non-exhaustive list of factors that may constitute justifiable / reasonable grounds for non-compliance. Deadlines The public has 90 days, from the date of publication, to comment. All public comments must be in writing and forwarded to: Christina.lehlokoa@labour.gov.za Jullian.mohale@labour.gov.za Innocent.makwarela@labour.gov.za The Government Gazette containing the draft regulations on the proposed sectoral numerical targets may be accessed at: Draft regulations on proposed sectoral numerical targets. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/employment-equity-act-draft-regulations-on-proposed-sectoral-numerical-targets-2024-02-12

Staff Writer | 13 February 2024 Cassa Depositi e Prestiti, the Italian financial institution for international development cooperation, is inviting African start-ups to apply for the Archipelagos SME support programme. Established in collaboration with the European Commission, Archipelagos seeks to assist up to 1 000 SMEs from across the continent to join a dedicated capacity-building programme designed to strengthen their capabilities and skills, and increase their readiness for capital markets. According to a statement, through the Archipelagos online learning platform, SMEs will have access to a learning catalogue of online courses, with differentiated learning paths according to the specific needs and stage of development for each business. It focuses on three core areas: training, mentoring and networking. The training is delivered through a hybrid model, combining asynchronous and synchronous components to offer a comprehensive and interactive learning experience. Webinars also contribute to make the learning journey more stimulating, engaging and interactive. “In addition to training, SMEs participating in the programme will receive dedicated support and will have access to a community of SMEs and investors, providing them the opportunity to make valuable business connections, also at international level,” says the statement. “The European Commission has committed a €30 million guarantee facility and €5 million for technical assistance – all to be channelled towards the top achieving participants.” At the end of the programme, the most promising SMEs will receive specialised support to raise funds in the capital markets through debt instruments, supported by a guarantee facility from the European Commission. Interested businesses can apply on the Archipelagos website until 30 June. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/skills-development-initiative-targets-african-smes/rxP3jMBEAyQ7A2ye

Wolfgang Neff | 13 February 2024 Construction is also the largest employer of unskilled workers and one of the biggest employers of youth in South Africa. This makes it a major driver of economic upliftment and an integral flywheel for economic recovery and growth. This year’s opening of Parliament occurred in a difficult economic climate. Just last week, the International Monetary Fund downgraded its economic outlook for South Africa. Given that the outlook was only 1.8% growth to begin with, the possibly of even slower growth (just 1%) should concern us all as we strive to build a more inclusive economy that significantly addresses unemployment, poverty and inequality. In this context, the work of Parliament carries even more weight, with a greater responsibility to safeguard critical industries. Nowhere is this truer than in the construction sector. The South African construction industry is a critical economic contributor. It makes up 3% of the national gross domestic product, to the value of more than R30 billion, provides much-needed employment to some 1.3 million people while improving the public and private infrastructure in the country. Construction is also the largest employer of unskilled workers and one of the biggest employers of youth in South Africa. This makes it a major driver of economic upliftment and an integral flywheel for economic recovery and growth. More importantly, the construction sector’s work brings immediate and tangible benefits to communities across the country, from roads and bridges to schools and hospitals. This is especially true in rural communities. In the process of delivering the important projects, the construction sector also offers a direct and rapid economic injection to communities who often need it most in the form of jobs. In recent years, the sector has faced many headwinds, having been badly impacted by the stagnating economy, a decline in government infrastructure expenditure, the Covid-19 national lockdowns and the growth of the construction Mafia, all of which resulted in reduced revenue and job losses. There has, however, been a notable recovery in the construction sector over the past year, with many construction firms reporting stronger financial results than was previously experienced. Wilson Bayly Holmes-Ovcon (WBHO), which employs 9 413 people, provides a good example of this recovery. WBHO has been responsible for some of the biggest building construction, civil engineering and roads and earthworks projects across the continent. Although also impacted by the downturn of the past few years, WBHO’s recent results for the financial year ended June 30, 2023 show operating profit from continuing operations having increased by 30% with African operations contributing R995 million from R701m in the previous year. Furthermore, WBHO’s order book levels have increased to R33bn, a growth of 47% when compared to the previous year. This stronger financial performance has led to the empowerment of thousands of South African beneficiaries. WBHO, for example, has invested heavily in transferring a large percentage of its shareholding to permanent black employees over the past few years through its Akani Broad Based Incentive Share Scheme programme while spending hundreds of millions of rand on skills development and enterprise development programmes aimed at benefiting black employees and black-owned businesses in the sector. To illustrate the point, WBHO has invested more than R480m in skills development over the past decade as well as nearly R150m to develop black-owned businesses in the sector. In many ways, WBHO is doing something unprecedented – the company is investing resources to grow its own competition. From an operational perspective, WBHO’s executives own less than 1% of the business while more than 20% is owned by largely black permanent employees. During the first phase of WBHO’s employee share initiative, more than 2 966 employees received shares in the company, worth approximately R110m. It is in this context that the Public Procurement Bill was passed by the National Assembly in December with minor changes, and is being considered by the National Council of Provinces. While the imperative to accelerate and advance transformation is widely recognised, it is also important that legislation passed for this purpose does not undermine the significant progress made in transforming the construction sector. There was considerable criticism of the Public Procurement Bill when it was tabled in the National Assembly. This criticism varied from procedural issues – a short notice period, rushing the legislative process and rendering it impractical – to more substantive issues which identified specific long-term consequences such as the impracticalities of implementing the Public Procurement Bill in its unamended form as well the negative impact of Bill on the Constitutional considerations of fairness, equity, transparency, cost-effectiveness and competitiveness to the bidding process. The issues create reasonable grounds on which to question the constitutionality of the bill. The bill would also impede the ability of municipalities and provinces to determine their own procurement criteria. If passed in its unamended form, it seems clear it will invite lengthy and costly legal challenges. The construction sector operates under the 2017 Amended Construction Codes (ACSC). The preferential procurement element of the ACSC’s scorecard has specific targets aimed at advancing businesses owned by black South Africans, women and black youth, as well as disabled and rural South Africans. Within this framework, the sector has seen tremendous efforts to not only meet, but also exceed expectations. In addition to requiring new infrastructure, South Africa needs a thriving construction sector to help rebuild and repair critical infrastructure that has suffered as a result of insufficient and delayed maintenance. This is required in various parts of the country impacted upon by crises including social unrest and climate-related incidents. Now more than ever, our priority as a nation must be to safeguard the skills and investment necessary to build and maintain globally competitive infrastructure that keeps apace with global trends and technological innovation. South Africa’s construction sector was once globally respected, and it can be again. But to achieve this, we must narrow our focus to policy and legislative changes that support the growth of the economy more broadly and the construction sector in particular. We need to recognise those who lead in transformation instead of burdening them with further requirements that hamper further transformative contributions and sap the economy of its vitality. Parliament must revisit the Public Procurement Bill and what its impact on the economy will be. In this watershed moment, mistakes can be costly, setting back the critical recovery the country so desperately needs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/deliberations-on-the-public-procurement-bill-will-have-real-and-lasting-consequences-for-the-construction-sector-19c9b08c-a74b-496f-a2b5-b0bcc9954cd3

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials.    This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements.   Support Services  are available to guide members on TMPS Exclusions.

Informal training is the means that many organisations use to drive their Skills Development mandate. Category G is Informal Training whereby the Skills Matrix references work-based informal programmes. It refers to the workplace or internal training, whereby one employee trains another.   The following evidence substantiates a claim for this category (not limited to):   Certified copy of a South African identity document; A signed EEA1 or any documentation confirming race and gender presented by the trainee; A training register confirming the date, the number of hours, as well as the trainer’s and trainee’s names. All parties must sign off this evidence; and The payslips of the trainer will verify the hourly rate paid in the month training took place. It may include presenting the trainer’s IRP5 if the Measurement Period is a February year-end.   Skills Development Services  are available to guide members on how to claim such Training initiatives.