Tag: Broad-Based Black Economic Empowerment (B-BBEE)

The Statistics SA Quarterly Labour Force Survey for Q2 2021 paints a grim picture of the employment landscape in South Africa – the official unemployment rate is 34.4%. Most significant of all, the unemployment rate for youth aged 15 to 24 years stood at 64.4% and the unemployment rate for those aged 25-34 years was 42.9%.

Many South African businesses have been struggling since the initial COVID-19 lockdown in March 2020. While the economy has seen slight improvements from last year, conditions remain uncertain and unstable. Many businesses are struggling to balance the need to stay afloat with the desire not to retrench any further staff.

Astute and timeous legal advice around foreign direct investment (FDI) transactions in the mining sector is necessary for efficient processes. FDI in South Africa fell by almost half in 2020, in line with the world-wide downturn caused by the global COVID-19 pandemic, reports the United Nations Conference on Trade and Development (UNCTAD).

Broad-based Black Economic Empowerment (B-BBEE) is a prerequisite for doing business in South Africa, and training forms a significant portion of the B-BBEE scorecard. However, training is also critical to help address the skills shortage in the country that is only growing as we move into the 4th Industrial Revolution (4IR).

An interview with Monde Ndlovu, Head Advocacy and Thought Leadership, Black Management Forum (BMF), and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing how all stakeholders in society have a particular role to play in fusing the scientific, the craft and artistic perspectives of transformation in the South African economy.

As the Workplace Skills Plan (WSP) and Annual Training Reports (ATR) submission deadline draws closer, employers are encouraged to make their skills development submissions as soon as possible because unlike the previous year, there will not be an automatic extension.

South Africa is limp wristed from unclear definitions and objectives that are used at different moments to drive ambiguous agendas. South Africa lacks a clear definition for transformation, and thus every other organ of change abdicates their role in shaping the country in a progressive direction.

The B-BBEE commission sent an unflinching message to entities attempting to circumvent their transformation responsibilities: there is zero tolerance for entities involved in fronting and/or misrepresentation of their Broad-based Black Economic Empowerment (B-BBEE) status and such activities will lead to criminal investigation and prosecution.

We have noted the ruling by the Supreme Court of Appeal (SCA) that declared the PPPFA Regulations of 2017 invalid and confirm that the ruling has no effect on the B-BBEE Act, as amended, and its requirements. The B-BBEE Act permits organs of state or public entities to set B-BBEE qualification criteria for procurement and other economic activities and to exceed the criteria set in the Codes of Good Practice through section 9 (6) of the B-BBEE Act.

The current COVID-19 pandemic, and the lockdown implemented by the South African government, has had a significantly negative impact on businesses. Some have only recently been able to commence operations with the start of the current alert level 1 status.