African Leader November 2023 Edition

Cover Deputy.indd 2

2023/11/01 1:21 PM

WHERE HUMAN CONNECTIONS CREATE LASTING IMPACT MEET ARMANDO MANHIÇA Armando’s story unfolds as a testament to Standard Bank CIB’s Human First philosophy. Discover Armando’s commitment to achieving his personal aspirations, and his dedication to aligning these to create impactful solutions for our clients, supported by a bank that shares his passion.

Delve deeper into the story of Armando Manhiça, Credit Risk Manager for Standard Bank CIB in Maputo, and see how human connections can create lasting impact.

standardbank.com/cib

Standard Bank is an authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06).

GMS-22982 08/2023

TO BE HUMAN FIRST, YOU HAVE TO BE HUMAN, FIRST. Paul Lotter, Head: People and Culture, Corporate and Investment Banking (CIB) at Standard Bank Group.

Standard Bank CIB has been on a journey to foster an environment where people can show up as themselves: be fully engaged, feel like they belong and bring their authentic selves to work.

We believe in the power of this human-centred approach and the positive impact of this on our long-term success and sustainability. We call this being ‘Human First’.

Listening to our people Our ’Human First’ philosophy is at the heart of the decisions we make and the way we do things within CIB, and our journey continues to evolve.

One of the promises we make is to find new ways to support our people with what they need to thrive and to make their dreams possible.

This involves truly listening to our people to understand what inspires them, and what they aspire to, both personally and professionally.

Our human-centred approach stood us in good stead during the COVID-19 pandemic and helped us transition to working-from-home while still prioritising our people’s wellbeing during this time. One of the major outcomes of this work in the post-pandemic hybrid era has been that our people feel more comfortable being vulnerable – more human. Our teams are better able to connect with each other and show greater care, empathy and respect for one another due to focused initiatives that help our people better understand themselves and their personal values. This is as important for us as it is for our engagements with our clients.

Safe spaces A key focus for us on this journey has been to deliberately create opportunities and environments where it’s safe for our people to speak up and share their views. We continuously offer our leaders access to world-class leadership and coaching programmes that equip them to listen with curiosity, invite feedback and facilitate emotive conversations. We’ve seen a positive shift within CIB and our people feel more comfortable to open up outside structured forums. This is key for the wellbeing of our people, our teams and our organisation.

Igniting head, heart and soul We speak of ‘igniting head, heart and soul’ as part of our ‘Human First’ philosophy. The ‘head’ element speaks to energising our people through what can be achieved when they’re part of our team – the difference they can make in our communities and our continent. We support our people in unleashing their full potential, and surround them with equally passionate people to collaborate with to solve difficult challenges that we face.

‘Heart’ is a reminder of our shared humanity.

As a father, husband and brother myself, I know the ups and downs that life can throw our way.

We offer our people tools to support them at all stages of life. For example, we offer life coaching to all our people, no matter their role, to help them realise the things they personally need to thrive in life. ‘Thrive’ is an important word: we often talk about high-performing teams in challenging envi-

ronments, and we’re committed to building ways to help our people sustain their productivity, energy, and commitment so that they don’t burn out.

The ’soul’ aspect is that feeling of being part of something bigger than ourselves. In line with our purpose of driving Africa’s growth, we want our people to feel and know that they’re not just doing a job when they come to work. Our organisation and our work enable amazing transformations in our communities, countries and the entire continent. That’s great for the soul, at work and at home.

The journey continues There’s no final destination on our ‘Human First’ journey – we are committed to continuously progressing as we learn and grow. We know that we’re not yet where we want to be and will continue working to honour our promise to our people.

We are also excited to see the external expression of our ‘Human First’ philosophy, with our people empathetically engaging with our clients as their best, authentic selves; fully committed to making a difference to every client they serve.

To learn more about our employees’ experience of our ‘Human First’ philosophy, please visit standardbank.com/cib.

Standard Bank is an authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). GMS-22982 09/2023

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023 | WWW.BMFONLINE.CO.ZA

CONTENTS 3 MD’S NOTE

10 EMERGENT ECONOMIES

Xolile Kunene, acting managing director of the Black Management Forum, comments on the organisation’s recent Reimagining Broad-Based Black Economic Empowerment thinktank.

4 BMF EVENTS Reimagining Broad-Based Black Economic Empowerment; The BMF celebrates the graduation of the 2022 and 2023 cohorts of the Women In Power Programme and the Management and Leadership in Action Programme.

8 IN CONVERSATION WITH Gloria Serobe: a name synonymous with empowerment for women – but this icon’s contribution to South Africa’s business landscape has had benefits for all. In this conversation, she discusses how far the country has come, and how far we still have to go.

ADDITIONAL RESOURCES The push for diversity must intensify

Unpacking the energy conundrum

In the last 30 years, transformation in the financial, mineral and energy sectors has been painfully slow compared to other industries. We unpack what lies behind this.

13 GENDER PARITY Dr Sibongile Vilakazi, BMF president, shares what it means to be the torchbearer of the BMF’s historical women presidency; Lebogang Zulu, chairperson of BRICS WBA South African Chapter, talks about propelling both BRICS and African nations toward sustainable prosperity on the global stage; Jeanett Modise (Absa) and Bertina Engelbrecht (Clicks Group) share that Africa’s female leaders are working hard to blaze the trail for their peers and counterparts; We highlight some of the strides made by women within the automotive sector.

20 THE ENERGY CONUNDRUM Why is access to renewable energy fundamental to supporting inclusive growth?; Creating a hydrogen economy in South Africa is about more than just energy transition.

22 ENTREPRENEURSHIP As we approach the Global Entrepreneurship Congress for Africa in 2024, we look at what it means to advance entrepreneurial activity to build economies and expand human welfare.

26 BLACK ECONOMIC EMPOWERMENT READ NOW

2

READ NOW

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

Is there adequate buy-in from corporate South Africa around supplier, skills and enterprise delvelopment?; Navigating Employment Equity reporting: guidelines and insights for 2023 from the BEE Chamber.

Bmf president: Dr Sibongile Vilakazi Deputy president: Lilly Moabi BMF editorial team: Acting managing director: Xolile Kunene Head of communications, marketing and events: Khulukazi Mtebele Head of advocacy and thought leadership: Xolile Kunene Address: The Eric Mafuna House, 12 Summer Street, Rivonia, Sandton, Gauteng, 2196 www.bmfonline.co.za

published by

Picasso Headline, a proud division of Arena Holdings (Pty) Ltd Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 Postal Address: PO Box 12500, Mill Street, Cape Town, 8010 VAT Number: 4730261205 Contact Person: Lodewyk van der Walt Tel: +27 21 469 2400 | Fax: +27 86 682 2926 www.businessmediamags.co.za EDITORIAL Content Manager: Raina Julies rainaj@picasso.co.za Contributors: Trevor Crighton, Pierre Herben, Busani Moyo, Viren Sookhun, Dr Sibongile Vilakazi, Lisa Witepski, Lebogang Zulu Copy Editor: Brenda Bryden Content Co-ordinator: Natasha Maneveldt Digital Editor: Stacey Visser vissers@businessmediamags.co.za DESIGN Head of Design: Jayne Macé-Ferguson Advert Designer: Bulelwa Sotashe Cover Image: Robbie Tshabalala. © FM. SALES Project Manager: Jerome van der Merwe jeromem@picasso.co.za Tel: +27 21 469 2484 | 082 668 1496 Sales: Frank Simons PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Shamiela Brenner Subscriptions and Distribution: Fatima Dramat | fatimad@picasso.co.za Printer: CTP Printers, Cape Town MANAGEMENT Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

Copyright: Picasso Headline. No portion of this magazine may be reproduced in any form without written consent of the publisher.

The publisher is not responsible for unsolicited material.

African Leader is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

MD’S NOTE

B-BBEE 2.0: THE NEXT PHASE OF TRANSFORMATION XOLILE KUNENE, acting managing director of the Black Management Forum, comments on the organisation’s recent thinktank on reimagining B-BBEE

Image: supplied

S

outh Africa marks nearly 30 years since the establishment of its new constitutional order and two decades since the enactment of the Black Economic Empowerment (BEE) Act. The Black Management Forum (BMF) has been a sounding board for advocating and lobbying for transformative legislation to reconstruct the economic outlook of corporate South Africa and our broader society.

The country has been confronted with myriad challenges and has been searching for the best approaches to transform the economy so that it is demographically representative. Thus, in fast-tracking the pace of socioeconomic transformation and paving a new pathway, the BMF continues to amplify its mandate of effective lobbying and advocacy by articulating views for inclusion, ownership, management and control.

In the current economic trajectory, the organisation is actively hosting and participating in conversations that will assist in guiding social and economic progress. It is essential that we prevail in developing thought leaders who will act as architects of progress, provide innovative ideas and a vision for a better South Africa, and propel the nation forward.

Further, thought leadership is essential as a mechanism to navigate complex environments and assist in steering the direction of policymaking, societal changes, and economic development.

A recent robust thinking and discussion session, “Reimagining Broad-Based Black Economic Empowerment (B-BBEE)”, hosted by the organisation, is a testament to the importance of effective lobbying

Xolile Kunene

and advocacy. It emphasised the need to return to basics, particularly for the BMF as midwives of the legislation. We concede that the act was a starting point towards averting several challenges pertaining to economic exclusion.

Significant progress is needed to ensure that the act benefits the majority from the peripheries of the economy to the mainstream.

It is against this background that the current president of the BMF calls for the establishment of B-BBEE 2.0, where key lessons and successes from the past 20 years will be incorporated in configuring the next two decades and reflect the aspirations of the country.

Merely acknowledging social inequalities is not adequate, decisive and deliberate action must be taken to address and avert them.

Calling for significant socioeconomic changes, more especially in the public policy domain, is not an easy endeavour.

To effectively challenge the status quo, we need to articulate clear views, have a robust voice and ultimately work towards desired change. The organisation’s initiatives demonstrate how we can stimulate the next phase of transformation. We simply cannot get it right by being passive observers; we must be intentional and agents of change by collaborating with policymakers, business leaders and community groups to promote ideas that reshape the future of our nation.

In a democratic age, the power to make a difference and an impact is not solely bestowed upon those in charge of the affairs of the country, society also has a view. Hence the important role of the BMF in championing, influencing and persuading decision-makers and industry experts to drive transformation.

As we reflect on South Africa’s democratic journey and look to the future, we need to be committed to economic transformation, encourage open and constructive debates and suggest practical interventions and solutions. This year’s BMF Annual Policy Conference will be used as a vehicle to steer the country back on the right trajectory and drive the nation’s transformation.

To effectively challenge the status quo, we need to articulate clear views, have a robust voice and ultimately work towards desired change.

ISSUE 59 | NOVEMBER 2023

MDs note_subbed.indd 3

AFRICAN LEADER

3

2023/11/01 1:11 PM

EVENTS

CHARTING A NEW PATH FOR ECONOMIC TRANSFORMATION On 20 July 2023, the Black Management Forum hosted an ideation session titled “Reimagining Broad-Based Black Economic Empowerment”

T

his event marked a significant turning point in the ongoing discourse surrounding Broad-based Black Economic Empowerment (B-BBEE) in South Africa. The session’s core message was clear: it is time to return to the drawing board and redefine the path to economic transformation for the nation.

For the Black Management Forum (BMF), the need for reimagining B-BBEE stems from a stark reality – despite two decades of implementation, the policy has not achieved its intended objectives.

Instead, it has benefitted a select few, leaving the broader goal of economic transformation largely unaddressed.

The call is now for B-BBEE 2.0, a comprehensive overhaul of the policy, drawing from the lessons learned during the past two decades and aligning with the aspirations of the present.

One resounding conclusion emerged from the session: to truly empower the black population and address South Africa’s socioeconomic challenges, the nation must first establish its identity and purpose. True black emancipation requires not only a functional economic framework, but also the healing of historical wounds. South Africans must reconnect with their culture and identity, and engage

4

in introspective discussions about their collective mission.

At the heart of this vision is the imperative of fostering a growing economy. To achieve this, it is essential to set clear economic growth targets that are rigorously monitored and driven with purpose and discipline. The shift from being consumers to producers, as emphasised by Mashudu Ramano, encapsulates this journey – South Africans must become “prosumers,” consumers of their own products, thereby stimulating economic growth from within.

The words of the BMF’s founding president, Eric Mafuna, remind us that genuine transformation transcends mere economic policies. It involves addressing economic, social, and psychological dimensions. B-BBEE should not be seen as a mechanism for accepting handouts, but as a means for meaningful economic participation, where every citizen contributes to and benefits from the country’s prosperity.

“Genuine transformation transcends mere economic policies. It involves addressing economic, social, and psychological dimensions.” – Eric Mafuna

Images: supplied

Back from left: Mashudu Ramano, Ruel Khoza, Bonga Mokoena, Mzwanele Manyi, Alwyn Nel, and Sipho Nkosi. Front from left: Eric Mafuna and Sibongile Vilakazi.

The BMF’s vision for B-BBEE 2.0 also extends to regional integration, recognising the potential for growth through strengthened ties with neighbouring countries and the broader African continent. South Africa can position itself as a hub for trade and investment, fostering collective growth and mutual benefits for all.

The BMF’s holistic approach underscores the need to address economic, social, and cultural aspects simultaneously.

Acknowledging the nation’s shared history while taking responsibility for shaping a more equitable future is paramount. Investing in education, promoting entrepreneurship, and fostering collaboration across sectors and borders are essential steps towards overcoming economic challenges and creating a thriving and inclusive South Africa.

In her concluding remarks, BMF president Dr Sibongile Vilakazi emphasised that the BMF is committed to leading the collaboration required to make this vision a reality. All black professional formations are invited to join hands in shaping this vision as the nation embarks on this transformative journey. Unity and collective effort are the keys to realising the dream of a prosperous South Africa for all.

As we move forward, the call for B-BBEE 2.0 serves as a rallying cry for all South Africans to engage, reflect, and work collaboratively towards building a more inclusive and prosperous nation. The journey to redefine empowerment has begun and, with unity and determination, we can pave the way for a brighter and more equitable future.

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

EventsNEws.indd 4

2023/11/01 1:18 PM

EVENTS

SHAPING THE FUTURE OF LEADERSHIP The BMF celebrates the graduation of WIPP and MLAP participants

MLAP graduates

I

n an era where leadership evolves continuously, equipping individuals with the right skills, tools and vision is essential to driving progress. The Black Management Forum (BMF) understands this need and, in partnership with Duke Corporate Education, has been on a mission to reshape the leadership landscape in South Africa. On 26 May, a remarkable celebration – the graduation of the 2022 and 2023 cohorts of the Women In Power Programme (WIPP) and the Management and Leadership in Action programme (MLAP) – took place at Duke Corporate Education’s premises.

Images: supplied

WIPP: EMPOWERING WOMEN FOR LEADERSHIP EXCELLENCE WIPP is a six-month short-learning programme designed to empower women executives with value-based leadership skills. It is tailored to address the unique challenges women in management and leadership roles often encounter. WIPP doesn’t just offer theoretical knowledge; it equips participants with practical insights, tools, frameworks and leadership competencies to enhance their leadership impact significantly.

From left: Angie Naidoo (managing director, partnerships at Duke Corporate Education); Dr Sibongile Vilakazi (BMF president); Sharmla Chetty (chief executive officer, Duke Corporate Education); Lilly Moabi (deputy president of the BMF); and Xolile Kunene (acting managing director of the BMF).

As the graduates of WIPP walked the stage with a sense of accomplishment, it was evident that this programme had not only provided them with invaluable knowledge, but had also ignited a higher level of professional performance. In a world where diversity and inclusion are paramount, the WIPP programme has been instrumental in paving the way for more women to take their rightful place at the forefront of leadership.

MLAP: NURTURING TOMORROW’S LEADERS TODAY On the same occasion, the BMF celebrated graduates of the MLAP. This programme is designed for junior managers, serving as an entry-level management and leadership intervention.

MLAP empowers participants to steer their personal leadership goals thoughtfully and tackle the critical growth strategies essential for their organisations.

Through MLAP, individuals gain access to the tools and processes needed to address their organisation’s leadership challenges effectively. As these graduates embarked on the next phase of their careers, it was evident that MLAP had

played a pivotal role in shaping their leadership journeys. They are now equipped not only to lead, but also to lead with vision, purpose and a deep understanding of the dynamic leadership landscape.

The success of the 2022 and 2023 cohorts is a testament to the fruitful partnership between the BMF and Duke Corporate Education. This collaboration has not only empowered individuals with knowledge, but has also ignited a spark of transformation in the South African leadership sphere. As these graduates step into the world, they carry with them the mission of driving change, fostering diversity and championing excellence.

The BMF and Duke Corporate Education have taken a significant step towards building a brighter future. With each WIPP and MLAP graduate, South Africa moves one step closer to a leadership landscape that reflects the diverse voices, experiences and talents of its people. These graduates are not just leaders; they are the architects of a new era in leadership, one defined by innovation, inclusivity and unwavering excellence.

ISSUE 59 | NOVEMBER 2023

EventsNEws.indd 7

AFRICAN LEADER

7

2023/11/01 1:18 PM

THEN AND NOW: GLORIA SEROBE’S VIEW OF A CHANGING SOUTH AFRICA Gloria Serobe’s name is synonymous with empowerment for women – but this icon’s contribution to South Africa’s business landscape has had benefits for all. Here, she discusses how far the country has come, and how far we still have to go. By LISA WITEPSKI

G

loria Serobe’s impact on South African business – and, by extension, the country itself – cannot be ignored. She would possibly say that her greatest achievement is the establishment of Wiphold, the first women’s investment company in South Africa. The company ultimately went on to list on the Johannesburg Stock Exchange, an idea she admits was “against the wind” when the organisation commenced operating 26 years ago.

However, her mark on the public sector is just as pronounced. As chief financial officer of Transnet between 1996 and 2002, she was instrumental in changing the fortunes of the then beleaguered parastatal; an act that had an emphatic ripple effect. The efforts of Serobe and her team helped move the country from the junk investment status inherited by the new ANC government to a BBB rating in just seven years. “It was an important development because state-owned enterprises (SOEs) were weighing heavily on the government’s balance sheet at the time. We received a direct instruction from Treasury to fix the SOEs so that we could improve that balance sheet.

It was a special career highlight for me because Transnet was one of the worst performing SOEs.” Serobe was also involved in addressing the issue of Transnet’s historical pension fund deficit – a legacy of the company’s T11 bonds that choked the organisation’s balance sheet and left it with an unhealthy gearing ratio of 85 per cent. “That meant

8

improved performance allowed a growing number of black auditing firms to specialise in auditing this area, and Serobe is proud of the role played by the organisation in cultivating these specialists.

More recently, her appointment as chair of the Solidarity Fund, formed to mobilise private funding during the COVID-19 pandemic, saw her “take bullets for the country”. “It was my biggest battle yet, but I am grateful for the opportunity, no matter how hard it was,” Serobe states. “It is also because of the immense support we received from government, business, civil society and ordinary South Africans that the Solidarity Fund could raise over R4-billion for the fight against COVID-19, and I will forever be grateful for this show of patriotism and active citizenship from all South Africans.”

Gloria Serobe

STRENGTHS AND CHALLENGES

there was no money left for us to invest in infrastructure,” she notes. Her contribution saw the gearing ratio shift to 50 per cent, making such investment possible.

As the sole owner of ports, pipelines and rails in South Africa, Transnet’s

Her role in both the private and public sector over her long career means that she has been able to develop a unique view of the country’s developing strengths and weaknesses in the almost three decades since democracy. “I find it interesting to note that because we are experiencing difficult times now,

The vilification of empowerment overlooks the fact that a very real solution is needed to create opportunities for a population who were formally excluded from the economy before 1994.

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

Gloria Serobe_subbed.indd 8

2023/11/01 1:11 PM

IN CONVERSATION WITH

people tend to overlook the country’s many positives,” Serobe comments. She maintains that the most significant of these is that South Africa now participates on the global stage meaningfully – a status we didn’t enjoy pre-1994. “We are taken seriously and are listened to. I don’t want us to forget this, it is something we worked hard for.”

She adds that, controversial though this observation may seem, the country’s electricity situation is, in fact, an improvement on the days before democracy. Back then, electrical penetration stood at just 20 per cent, leaving an astounding 80 per cent of the country in darkness. Having access to power now has markedly improved their quality of life.

“We are all familiar with the challenges the country faces, from crime to the energy crisis. But few give thought to the rural economy and its state of disrepair.

So many people who would prefer to live in their rural home are forced to travel to urban areas for jobs, and in the process, new problems, such as traffic congestion, are created. By investing in agriculture, for example, we could fix the rural economy and create a positive knock-on effect.”

Image: supplied

THE ROAD FORWARD FOR EMPOWERMENT Empowerment is another ongoing challenge for South Africa’s business leaders. Serobe describes it as “a sore point”. “We’re not only seeing empowerment going backwards; it is increasingly under attack,” she says.

“More and more frequently, empowerment is becoming the scapegoat for unrelated issues.” Not only is this unfair, but the vilification of empowerment overlooks the fact that a very real solution is needed to create opportunities for a population who were formally excluded from the economy before 1994. “They were marginalised through legislation, and we need legislation to bring them back into the mainstream economy,” Serobe says.

She adds that while it is understandable for foreign partners that don’t appreciate the scale of the damage that must be

reversed to question empowerment policies, it is inexcusable for local business leaders to imply that the practice does not add value. More than this, these leaders should be champions of empowerment.

“We need to articulate and defend empowerment. Perhaps one of the problems is that we are not doing this, and so are not executing it or explaining it as well as we should.” At the same time, she says organisations should operate in a manner that makes it clear empowerment is sustainable by refusing to take shortcuts. “Wiphold is a prime example. We won’t invest in a company unless it holds the same standards as any other organisation.

“We must give transformation dignity by investing in infrastructure and human capital, just as any other company would.”

TRANSFORMATIVE LEADERSHIP Against the backdrop of a country grappling with several issues, Serobe acknowledges that a special type of leader is needed to take us forward.

“Obviously, business acumen and entrepreneurial flair are important, but given that we are competing against major international organisations, the most vital quality for any leader today is outstanding intellectual capacity. We can’t remain competitive without it,” she says.

Courage is also key – the global stage is not for the faint-hearted.

A transformational mindset is another must. Serobe maintains that today’s leaders must also be “social entrepreneurs”, able to unlock the massive opportunities within transformation. “Here’s what I mean: presently, South Africa’s apple industry is centred around Ceres in the Western Cape. However, there are many other areas where apples would grow well.

Many of these areas haven’t yet been identified, because the land is owned by the 40 per cent of South Africans economically excluded under the apartheid regime. Because of this, we look to other countries to fill the demand for apples, missing out on an opportunity

The most vital quality for any leader today is outstanding intellectual capacity.

We can’t remain competitive without it. to develop our economy.” Linked to this is a focus on social inclusivity to ensure sustainability.

Serobe says mentorship should also be a key priority for emergent leaders.

This is especially true for women leaders.

Women have yet to achieve critical mass in the boardroom – and meet their full potential in terms of making an impact.

The way to solve this is for other women who have already walked the road to extend a hand and journey alongside them.

But mentorship cannot only happen at corporate level; it is vital inside families, too. “Our social fabric is broken, and the family is the basic unit of society,” Serobe explains. “It makes sense for us to build families along corporate lines to fix them.”

The ultimate mentor is the mother-in-law, the woman who has already been where you are standing now and therefore knows how to help you navigate the land – a sentiment Serobe expressed in her recently penned book, An Ode to My Mother-in-Law, Winnie Serobe.

LEAVE POLITICS TO THE POLITICIANS With such leaders at the helm, South Africa’s challenges are, hopefully, temporary, however, Serobe wants to add a ‘but’. “We need to leave politics to the politicians; let them sort out these issues while we stick to our mandates.

For the BMF, that means developing a new cohort of leaders and managers, for ABASA (Association for the Advancement of Black Accountants of South Africa), it means cultivating the next generation of accountants. When we step outside of this remit, chaos and confusion take hold,” she concludes.

ISSUE 59 | NOVEMBER 2023

Gloria Serobe_subbed.indd 9

AFRICAN LEADER

9

2023/11/01 1:11 PM

ECONOMICS

EMERGENT ECONOMIES

What’s behind the slow pace of transformation?

In the last 30 years, transformation in the financial, mineral and energy sectors has been painfully slow compared to other industries. BUSANI MOYO asks why

BEHIND THE RESISTANCE TO CHANGE Tabea Kabinde, transformation specialist and chair of the Commission for Employment Equity (CEE), says that the pace of progress on transformation has been painfully slow, and there continues to be a lack of representation of individuals from previously disadvantaged groups, particularly in senior management positions and in certain industries.

Kabinde advances the reasons behind the slow pace of transformation: • Not willing to change: based on the thinking

10

that the government or anyone else has no right to tell a business owner who they employ or engage with.

• Superficial compliance: organisations that manipulate the system through such methods as fronting, worried only about the numbers, but never fully invested in transformation.

• Self-delusion: these companies claim and believe they are diverse, but a closer look shows that the diversity doesn’t speak to the spirit of transformation.

Aggy Moiloa, the Employment and Labour Inspector General, doesn’t mince her words when evaluating the pace of transformation in South Africa. “There is very little to show in terms of transformation in the workplace in South Africa, even after 29 years since the country entered democracy.”

Moiloa says that the main reason behind this slow pace is that “discrimination runs too deep”. She adds that in the 2021/2022 financial year, only six per cent of organisations complied with the stipulations of employment equity legislation.

CHAMPIONS OF REAL TRANSFORMATION Even though the overall transformation picture in South Africa doesn’t look good, some sectors are showing what is possible. For instance, Tabea Kabinde

the B-BBEE Commission reports that “the transport sector and tourism sector have the highest average black ownership percentage at 78 per cent and 52 per cent respectively, followed by the construction sector at 49 per cent”.

NEW RACIAL TARGETS FOR BUSINESS With a report card as bad as the one painted by the B-BBEE Commission, it’s not hard to understand why the government is wielding a bigger stick with legislation forcing companies to do more. In the new racial targets, the Employment Equity Amendment Act specifies targets for people with disabilities, professionally qualified and skilled levels, and top and senior management. Even though the new legislation has received backlash from opposition parties, such as the Democratic Alliance, and some legal experts, it indicates that the South African government has not given up on the battle against inequality.

INEQUALITY IN SOUTHERN AFRICA: AN ASSESSMENT OF THE SOUTHERN AFRICAN CUSTOMS UNION REPORT

RE A D NOW

Images: supplied

I

t’s official: South Africa is the most unequal country globally. A recent World Bank report, Inequality in Southern Africa: An Assessment of the Southern African Customs Union (SACU) confirms this. The report says: “South Africa, the largest country in SACU, is the most unequal country in the world.”

That a finding like this is still possible nearly 30 years after independence is an indictment on South Africa’s efforts to create an equal society through different means, including employment equality. It may also indicate challenges with the country’s ability to create compelling situations where leaders can be developed organically from the various racial and gender groups. So why has South Africa’s transformation been Aggy Moiloa so slow that the undesirable accolade of being the most unequal society in the world has stuck for so long.

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

Emergent Economies_subbed_v2.indd 10

2023/11/01 1:20 PM

ADVERTORIAL: FOREST SECTOR CHARTER COUNCIL

B-BBEE LEVEL 3: IT’S ABOUT THE JOURNEY AND THE DESTINATION

E

While there is still a lot to do, the age-old quote that “it is not the destination but in fact, the journey” has a lot of merit here. As a Sector, we should continue to encourage each other in pursuing our dream of a converged, transformed and empowered forest community.

TS

Continued forward movement is imperative if the destination is to be reached. As the FSCC, we need to build on the momentum gained over the past five years and look at how our efforts can be amplified to broaden our reach.

The task for the sector is to replicate the exceptional yearly scores recorded for enterprise and supplier development across the other transformational target areas. An obvious one is to broaden our beneficiary reach through skills development aligned with the digital and technological needs of the sector and current skill shortages, tapping into areas that will

This year’s (2022/23) performance marks an important milestone and turning point for the forest sector. After five consecutive years of reporting using the Amended Forest Sector Code, with year-on-year peaks and troughs, we have achieved Level 3 B-BBEE status, suggesting that the commitment to transformation is reaching new heights. While the sector has not yet achieved the targets on four key scorecard elements, good scores were recorded in enterprise and supplier development, ownership and skills development, with management control showing a half-mark positive momentum.

KEY IMPERATIVES

MERIT IN THE JOURNEY

CT

O RC

H A R T E RC

OU

O. Z A

A TURNING POINT FOR THE SECTOR

appeal to and be acquired easily by the youth in particular.

Also critical is the development of programmes promoting the economic participation of women be it through entrepreneurship or promoting their rise through the corporate managerial structure.

The latter was identified as an area where significant changes and perhaps a reinvented approach is required if targets are to be met. That would also mean uncompromisingly embracing diversity and going beyond compliance to provide a clearly defined pathway for women inclusion and control in such roles.

One beacon of positivity in this area is the “She Is Forestry SA” initiative, established three years ago, which has been embraced and supported by the Sector and could provide a platform for change and growth. As a Sector we must value and credit women for their contribution and help them grow to achieve a balanced leadership platform.

I L .C

Where the sector is achieving its targets, they are exceeding all expectations.

The performance on socio-ecomonic development, augmented by the recent Corporate Social Investment reports, showcases the myriad of initiatives undertaken by the sector in forestry communities that are improving the lives and livelihoods of those living there and supporting the rural development principle.

These include the provision of clinics, schools, housing, food security initiatives, community engagement, educational programmes and recreational opportunities.

We are pleased to see sector-driven skills development initiatives increasing along with the dependable enterprise and supplier development initiatives supported by an increased number of entities reporting as new entrants and suppliers to the sector.

The subsequent approach would be to showcase these to further justify the sector’s efforts and encourage those still averse to transformation.

NC

s we look back to the days when Broad-Based Black Economic Empowerment (B-BBEE) was introduced in the Forest Sector, one could say, it has been a journey worth the ride.

That was 14 years ago. With the introduction of B-BBEE to the forest sector, a strong emphasis has always been on rural economic development and emancipation, women inclusion and creating new jobs, preferably for the previously disadvantaged. Some notable accomplishments prove that the desired transformational outcomes and goals can be realised.

The commitment to B-BBEE and the initiatives to achieve it must be aligned.

However, our actions need to remain relevant to ensure sustainable B-BBEE. While it would be fulfilling for the Forest Sector Charter Council (FSCC) to see all entities in the forest sector reporting and achieving the transformation targets, the improvements observed in the last few years are a step in the right direction.

FORE S

A

THE FOREST SECTOR CHARTER COUNCIL reflects on the sector’s journey to arrive at Level 3 B-BBEE

This year’s performance marks an important milestone and turning Nelly Ndlovu, point for the forest sector. After five consecutive years of reporting chairperson: Forest Sector Charter Council using the amended forest sector code, with year-on-year peaks and troughs, we have achieved level 3 B-BBEE status.

ISSUE 59 | NOVEMBER 2023

The Journey it has been- African Leader Magazine - draft 2_subbed.indd 11

AFRICAN LEADER

11

2023/11/01 12:58 PM

GENDER PARITY

CHAMPIONING THE CAUSE DR SIBONGILE VILAKAZI, BMF president, shares what it means to be the torchbearer of the BMF’s historical women presidency

T

he BMF took the bold step of electing a woman president and deputy president on 16 April 2023. Bold because the BMF is a male-dominated membership-based organisation: its membership constitutes 60 per cent men and 40 per cent women, so the majority of votes are by men. That two women were elected shows a progressive development on the part of the BMF men, which is commendable. The cry for a woman president has long echoed within the organisation – the last time was when Sis’ Nolitha Fakude served as president for one term 17 years ago. Now, five months after the cry was finally answered how has the organisation fared?

Image: supplied

TRANSFORMATIONAL THINKING AND BOLD LEADERSHIP CALLED FOR It is no secret that the decision to have both a female president and deputy president was due to unique challenges facing the organisation, necessitating a different leadership style to assist in resolving the challenges. The challenges were severe and encountered for the first time in the BMF’s history, leading to some existential questions from members and stakeholders.

Organisations go through different phases, successes and challenges in their evolution, so leaders with specific skills, qualities and temperaments

are brought in to respond to these.

The BMF was in a phase that needed transformational thinking and bold leadership.

For an institution whose purpose is to drive and agitate for transformation, this phase provided the lessons to be in a better position to hold corporate South Africa and the country at large accountable and honest on matters of transforming organisations. Key among these lessons is that change must be enforced, often by external forces. Change does not happen on its own and organisations don’t necessarily change willingly; they must have no option other than to change. The BMF had no option but to allow female leadership to assist the BMF in finding its way back to its soul.

TRAVERSING THE UNCHARTED TERRAIN OF CHANGE Now that the organisation has made the necessary change, I reflect on the first five months of travelling this uncharted terrain as an all-female presidency. I can conclude that the organisation’s decision was correct, especially in the interest of its reputation. Stakeholders, members and supporters of the organisation have welcomed an all-women presidency.

The female face and voice are seen to be refreshing and give the organisation a nurturing posture. However, the internal dynamics of the organisation have been interesting to navigate. This can be unsettling at times, but also understandable as the organisation operated without a president and deputy for several months.

As per Tuckman’s model of group dynamics or team formation, the first five months have been about storming and forming. The lesson here for the BMF and other organisations that have initiated change is to allow time to go through an adjustment process. While change must be forced, integration is a process that can’t. Instead, it must be allowed to unfold. Where needed, assistance, such as mediation or team building, can be sought, but the process of earning respect as a leader or authority in one’s field must be allowed to unfold naturally. After all, a position does not make one a leader, a leader is made by one’s ability to influence people to follow. Having a strong, well-articulated vision for people to follow is the ultimate test. Therefore, organisations undergoing change must ensure that the vision behind the change is strong enough to sustain the change. It must enable the organisation moving from storming to forming to begin performing soon enough and ensure success. Otherwise, the risk is that initiated change won’t progress to its natural conclusion and people will become despondent and start seeing change as a problem within the organisation – the worst scenario for the transformation agenda.

As the matriarchs and torchbearers of the organisation, I’m confident that the BMF members’ wisdom and decision were correct. The change initiated will not only see benefits for the organisation, but will also influence national politics to change. The time for a South African woman president has come, and the BMF is holding the torch and shining the light on how to navigate that road.

The BMF had no option but to allow female leadership to assist the BMF in finding its way back to its soul.

Dr Sibongile Vilakazi

ISSUE 59 | NOVEMBER 2023

gender parity_subbed_v2.indd 13

AFRICAN LEADER

13

2023/11/01 1:10 PM

GENDER PARITY

EMPOWERING WOMEN AND MSMES LEBOGANG ZULU, chairperson of BRICS WBA South African Chapter, shares that as we start unleashing capital and fostering a pipeline of empowered women leaders, we can establish an inclusive economic landscape propelling both BRICS and African nations toward sustainable prosperity on the global stage and across the continent. “BRICS and Africa: Partnering for Accelerated Growth, Sustainable Development, and Inclusive Multilateralism”, the theme of the XV BRICS Summit, underscores this recognition.

AFRICA’S POTENTIAL Africa represents significant opportunity for industrialisation across various sectors.

The continent boasts abundant minerals crucial for 21st-century business success, including lithium, vanadium, cobalt, platinum, palladium, nickel, copper, rare earth minerals, rhodium, and more. African nations have emphasised their preference for investors that process these resources locally, fostering stronger regional value chains that interconnect multiple African countries, offering investors diversity, strength and resilience.

BRICS heads of state have officially endorsed Africa’s potential, particularly that of its women and MSMEs, as highlighted in the XV BRICS Summit Johannesburg II declaration. Through declaratory statement 37, the BRICS leaders affirmed their support of the BRICS MSMEs Cooperation Framework, promoting co-operation through information sharing, business-to-business meetings and a focus on women- and youth-owned MSMEs. Member states will exchange MSME information, business opportunities and partnerships while also enhancing global trade involvement through the exchange of trade policies

Effective development of the SME business model is critical for Africa’s economic growth and long-term sustainability.

and market intelligence. Emphasis will be on providing access to resources, skills, knowledge networks and technology to boost MSME participation in the global economy and value chains, including exploring integration into global trade and value chains and leveraging regional experiences for their development.

In the dynamic global economic landscape, the BRICS MSME Cooperation Framework is a powerful driver of progress, empowering women entrepreneurs and SMEs. African leaders are urged to provide essential support to unlock the potential of the AfCFTA and enhance BRICS’ role as a gateway to global markets.

SUPPORTING WOMEN-OWNED BUSINESSES IS VITAL It is important to channel financing into women-owned businesses and MSME development. This promotes equity and serves as a strategic imperative, fully realising the potential of the continental free trade area and optimising economic value within the expanded BRICS nations.

Women, in general, are effective entrepreneurs with a profound impact on economic growth and job creation. Studies show that women-led businesses exhibit resilience, innovation and adaptability – qualities vital in today’s rapidly changing economic landscape. Moreover, women-owned businesses often prioritise social and environmental responsibility, aligning their endeavours with sustainable development goals. Empowering women entrepreneurs is not only a matter of gender equality, but also a strategic imperative to foster inclusive economic growth that benefits all segments of society.

Image: supplied

M

icro-, small- and medium-sized enterprises (MSMEs) play a pivotal role in Africa, representing, according to reports by The Centre for Strategic and International Studies, approximately 80 per cent of the workforce while sub-Saharan Africa boasts about 44 million small and medium enterprises (SMEs).

The African Continental Free Trade Area (AfCFTA) holds the promise of granting SMEs broader access to regional and continental export markets as a strategy to build capacity for international markets. Furthermore, both the Sustainable Development Goals and the African Union recognise that effective development of the SME business model is critical for Africa’s economic growth and long-term sustainability.

In Africa, SMEs are ubiquitous across all sectors, significantly impacting the continent’s socioeconomic development. According to the World Bank, SMEs are the primary engines of job creation, employing up to 90 per cent of the population in countries such as Uganda, Ethiopia and Kenya. And because we know SMEs foster invention, innovation and generation of new ideas and technologies, they serve as platforms for incubating, introducing and commercialising innovations and technologies, allowing for the testing and scaling of new products within broader macroeconomic systems.

From a South African perspective, substantial untapped investment potential exists within our nation

Lebogang Zulu

14

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

BRICS_subbed.indd 14

2023/11/01 1:01 PM

GENDER DIVERSITY

FEMALE EQUITY IN AFRICA: FAR AWAY OR WITHIN REACH? Africa’s female leaders are working hard to blaze the trail for their peers and counterparts, writes LISA WITEPSKI

J

ust five per cent of companies listed on Africa’s 24 stock exchanges have a woman as CEO, according to the Definitive List of Women CEOs from Africa.com and Standard Bank Group.

But despite this, those that are in leadership are pioneering change and growth at a fast pace.

Images: supplied

LEADING ON AFRICAN SOIL For Jeanett Modise, chief people officer at Absa, the lack of women empowerment in Africa is problematic, but she is also hopeful. She cites the World Economic Forum’s (WEF) 2022 Global Gender Gap Report, which notes that sub-Saharan Africa has registered its highest gender gap scope in 16 years: “The region has bridged 67.9 per cent of its gender Jeanett Modise gap, and Namibia ranks eighth out of 146 countries surveyed, while South Africa holds the twentieth position.”

Meanwhile, Bertina Engelbrecht, CEO of the Clicks Group, has her eyes open to the challenges facing female leaders in Africa. She, too, looks to the WEF Gender Gap Report, but is concerned by the report’s revelations around economic participation and opportunity, particularly in South Africa.

“South Africa has yet to meet 50 per cent of gender equality goals, highlighting the imperative of creating equal economic opportunities for women in leadership positions.

“Women in South Africa face a host of workplace challenges, including wage disparities, limited representation in leadership and corporate roles, a growing skills gap and inadequate career prospects. The issue of women occupying token roles for broad-based black economic empowerment compliance further diminishes the potential benefits of their leadership capabilities as they lack real decision-making power.”

Modise observes that the report’s outlook on closing the gender gap is far more optimistic than that of UN Women: According to the WEF, it will take only 98 years for the gap to close.

She says many businesses are doing all they can to ensure progress is made far sooner. In 2021, Absa adopted August as Women’s Month; an initiative aimed at bringing awareness to the gender agenda. For a start, Absa set out to create psychologically safe work spaces – important, she says – because empowerment is not only about putting women in key positions; it requires a holistic approach. With this in mind, the organisation is bringing awareness to unconscious biases, as these may influence decision-making. Absa has several formal initiatives in place, too.

The organisation created a Women’s Manifesto, which encompasses several programmes: Absa Ignite Her, Women Empower Her, Women in Tech and Women in Risk.

These efforts are bearing fruit: in 2022, 64 per cent of all promotions went to women, and 50 per cent of all new appointments were female. Many of these promotions were at management level. Advancement is taking place throughout the organisation’s African operations, too: representation at senior management level has increased from 33 per cent to 35 per cent, and stands at 40 per cent at mid-management level.

At the Clicks Group, says Engelbrecht, the accent is on creating an inclusive workplace culture where every employee feels valued for their unique contribution.

This is made possible through a well-defined Code of Conduct and workplace values that guide expected behaviours. Modise says the momentum set in place by forward-thinking companies needs to be picked up by more organisations. Her tips for creating space for emergent women leaders? “We must acknowledge women as the backbone of our society and ensure the workplace reflects this key role. Gender diversity is about harnessing the creativity and power that stems from our differences to make our organisations more effective.”

Engelbrecht adds: “Female advancement requires a multifaceted approach that emphasises equity rather than equality.

Corporate South Africa must make a deliberate effort to address unconscious bias and stereotypes through training and awareness campaigns to ensure we create an inclusive and supportive environment where women can thrive, unencumbered by prejudiced perceptions.”

“Female advancement requires a multifaceted approach that emphasises equity rather than equality.” – Bertina Engelbrecht

Bertina Engelbrecht

ISSUE 59 | NOVEMBER 2023

GENDER DIVERSITY_subbed_v2.indd 15

AFRICAN LEADER

15

2023/11/01 1:10 PM

THE FP&M SETA BELIEVES THAT EMPOWERING WOMEN IS EMPOWERING THE NATION The economic empowerment of women is vital for sustainable development and essential to achieve gender equality, poverty eradication and inclusive economic growth.

Given that there is a relationship between the social and economic status of women and economic growth and development, the Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA) believes that investing in women is imperative to increasing their contribution to the economy.

Skills training and consistent upskilling are powerful tools against poverty and hunger, and for women’s empowerment in all our sectors: Clothing, Textiles, Footwear, Leather, General Good, Forestry, Printing, Packaging, Print Media, Publishing, Pulp and Paper, Textiles and Wood Products.

PRIORITISING EDUCATION AND TRAINING We understand that economic empowerment is one of the basic drivers of progress for a country. When evaluated in the general sense, education and training are areas that should be prioritised in order for women to be effective in the economic growth and development process.

For us, it is crucial to realise the value and worth of a woman in society. Women should empowered to lead and contribute their skills, and to ensure that their presence and contribution to nation-building and all spheres of life are felt.

That is why the FP&M SETA provides leading skills development practices that empower the manufacturing sector and local communities, and boost inclusive socio-economic growth.

Some of the functions of the FP&M SETA are to: • Assist in promoting job creation, economic growth and decent work in the sector; • Co-ordinate the development of an overall training and education strategy for the sector; and • Develop an integrated sector skills plan and incorporate sub-sector skills training requirements and objectives within the national skills development strategy framework.

4IR We also understand that equitable upskilling sits at the nexus of the Fourth Industrial Revolution (4IR).

The FP&M SETA is cognisant that companies and organisations do not only require scarce information technology skills, but that the way employees do their work is increasingly digital as new tools are introduced in the workplace. But, while the 4IR makes lives and businesses better, it also widens the skills gap as countless people are left behind.

We know that if upskilled sufficiently, women will be able to embrace the 4IR. This will allow them to work more flexibly, to use their social and emotional skills,

and to integrate skills with the technological expertise required for the digital world of work.

Dr. Felleng Yende, CEO of FP&M SETA

Therefore, the FP&M SETA works hard to promote sustainable economic growth through skills training programmes to create an environment where all talent is given the opportunity to succeed and grow.

Through our career guide, which can be accessed at www.fpmseta.org.za, our responsibility is to ensure that each of our 13 sub-sectors deliver on their mandate to create an employable workforce in the context of the Fourth Industrial Revolution.

FORCE FOR CHANGE Through financial support, bursaries, study loans and study grants, we ensure that people obtain the critical or scarce skills that are needed to build the capacity of the sector to become economically sustainable and globally competitive.

We focus on identifying and addressing employer training needs through partnerships and engaging in ongoing improvements in delivery. We make training delivery as easy as possible for employers, and are exploring innovations such as online delivery and ways of making the cost of delivery as low as possible.

By equipping a new generation of employees, including women, with the skills and values that are helping to shape the future of the nation, the FP&M SETA is empowering workers to take control of their future, and be a force for positive change and sustainable economic development.

AUTOMOTIVE SECTOR

FROM THE BOARDROOM TO THE PRODUCTION LINE More workplaces need to be inclusively representative to deliver the full benefit, writes TREVOR CRIGHTON

T

he automotive industry is seen as one heavily dominated by men – from the boardroom to the production line via the engineers and designers – and, says Volkswagen Group South Africa director of corporate and government affairs Nonkqubela Maliza, that perception is the reality.

“It’s also true of the manufacturing industry as a whole. While things are changing, the pace of that change is too slow. Things are heading in the right direction, but it’s incremental – we’re still waiting for a seismic shift.”

Maliza says it’s easy to criticise the pace of change, but legacy issues are hard to correct. “What do you do with the people – men – who hold positions in the industry?

You can’t boot them out.” She believes that technical areas, such as engineering and technology, have traditionally been the domain of men because nobody spoke to young women about the career opportunities in those fields. “We don’t see women in those areas because they don’t see themselves there – either from a representation or opportunity perspective,” she says.

Image: supplied

SUFFERING FOR BIOLOGY Biological differences place a different kind of stress on women, says Maliza, because at no point in a man’s career is he defined by his ability to have children. “If a woman decides to have children, there’s an impact on her health, her body, her time and her career. That’s something we women just manage, doing all the juggling but not being allowed to show anyone that you’re juggling.”

She does her best to counsel young women entering the industry because

guilt of returning to work so soon was such a burden – and my boss hadn’t even noticed.”

Maliza now counsels young women – or those thinking about having children – by telling them they’re the only people who will remember the hurt, pain and guilt of rushing back to work. “I say, ‘take care of yourself – take your full maternity leave because you’re entitled to it and spend that precious time with your young family.

You’ll be back in six months, and nothing will have changed at work’.”

BETTER BALANCE Nonkqubela Maliza

of an event early in her career when she decided to have children. “I told my boss I was pregnant and he didn’t take kindly to it. He told me that although it was good for me personally, it would be bad for the company to have me away and that my KPIs wouldn’t change. The company maternity leave policy gave mothers four to five months off, but I was so terrified that I only took eight weeks. When I did my performance review a year later, my boss hadn’t even been aware that I’d cut my time with my child short by more than half.

I was so worried about my child, and the

She believes that to balance workplaces better, we need a critical mass of difference. “If there’s only one woman or one black person in a room of ten, that’s not inclusion. If you’re in the minority, you’ll always try to fit in with the group – you’ll change the way you think, talk and dress, it’s human nature. The only way to balance industries is to have more women, more people of colour or any more diverse representation in more places to change the thinking and behaviour and bring the full value those people have to offer to the business. Women are smarter than many if they’re truly allowed to show up as their best and most powerful selves – and that’s how we can change the workplace.”

The only way to balance industries is to have more women, more people of colour or any more diverse representation in more places to change the thinking and behaviour and bring the full value those people have to offer to the business.

ISSUE 59 | NOVEMBER 2023

women in automotive sector_subbed_v2.indd 17

AFRICAN LEADER

17

2023/11/01 1:12 PM

SHIFTING GEARS

HAPPY ZONDI looks at the developing role of women taking the driver’s seats in the changing automobile industry

A

transformational shift is taking place – one where more women are leading the charge in an industry once seen as a boys’ club – fostering diversity and innovation.

As the purr of engines and the redolence of motor oil mingle in the air, a dynamic group of female executives are breaking the barriers to rightfully assert their crucial role as a prominent item on the leadership meeting agenda, championing gender parity and inclusivity.

We showcase the significant strides made in the automotive component manufacturing industry, redefining the once male-dominated sector, challenging stereotypes and propelling the industry towards a more comprehensive and inclusive future.

NAACAM TAKES A LEADING ROLE In the ever-evolving landscape of automotive component manufacturing, the latest insights from the National Association of Automotive Component and Allied Manufacturers (NAACAM) reveal female representation in the component manufacturing sector is sitting at 34 per cent. While this number signifies progress, it also underlines the work still ahead to bridge the gender gap.

NAACAM is the representative body for the automotive component manufacturing sector and takes a leading role in driving the sector towards the targets of the South African Automotive Masterplan 2035, which includes increasing the representation of women and youth in the sector to broadly align with South Africa’s demographic profile.

This goal took centre stage at the recent NAACAM Show 2023, driven by the Tshwane Economic Development Agency. The NAACAM Show 2023 was the premier forum to showcase the capabilities of the domestic automotive component manufacturing sector. Hosted in the vibrant City of Tshwane for the first

18

Women in Autos Roundtable delegates

time, the event celebrated the sector’s high levels of innovation, interconnectedness and economic value-add to the South African economy. Industry leaders and stakeholders gathered at the Sun Bet Arena to engage in cutting-edge discussions, one of which was the Women in Autos Roundtable, sponsored by the Automotive Industry Transformation Fund (AITF).

The roundtable featured six distinguished panellists, representing various facets of the industry, such as component manufacturers, original equipment manufacturers (OEMs), training authorities and government representatives. Their discourse delved into “The Impact of Industry Mobilisation on Women-Owned Businesses and Youth.”

In this dynamic dialogue, speakers explored the hurdles women face as they endeavour to break into and thrive within the sector. They highlighted critical focal points for empowering women, the nurturing of an innovative culture among women and youth in South Africa’s automotive component manufacturing sector and the sector’s long-term aspirations.

Emphasis was placed on two cornerstones that can elevate female representation: skills development and mentorship programmes designed to facilitate career progression within the sector. This transformation must begin at an early stage, even as early as high school, where improved technical skill developments and career guidance can expose young women to the sector’s opportunities and benefits.

The Yakh’ifuture online career guidance platform launched through NAACAM’s High Gear Programme aims to do just this – generate awareness and excitement around the career prospects in the sector.

To achieve this, young women must

ABOUT NAACAM NAACAM is recognised as the voice of the South African automotive component industry domestically and internationally. As a member-driven organisation, NAACAM is at the forefront of industry leadership, representation and stakeholder engagement for automotive component manufacturers.

Anchoring its membership base are suppliers to OEMs for assembly in South Africa as well as to OE export markets and the domestic and global aftermarket.

These manufacturers are supported by a band of associate members who provide specialised services across a diverse range, including financial services, logistics, IT, incentive consulting and a host of others. NAACAM devotes many resources towards positively impacting the localisation, transformation and supplier development environment in South Africa.

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

naamcam.indd 18

2023/11/01 1:25 PM

ADVERTORIAL: NAACAM

value chain by providing access to developmental funding, access to market and capacity development for qualifying black-owned entities,” says Selumane.

To this end, AITF has set aside 30 per cent of its funding for black female-owned businesses. To date, they have already spent almost 60 per cent of these funds towards this endeavour.

As part of the South African Automotive Master Plan, the sector aims to increase the share of black-owned companies in the value chain.

The Institute of Future of Work at Tshwane University of Technology, AITF and naamsa | The Automotive Business Council, have also established the Future Dealership Women Management JABULANI SELUMANE, AITF CEO Development Programme, which aims to Complementing the activities of NAACAM, prepare a cohort of 30 forward-thinking AITF seeks to tackle female representation at black women to become new owners of an ownership level. motor vehicle dealerships.

In the fast-paced world of Says Selumane: automotive innovation, where “The programme will cutting-edge technology helps create a pipeline of meet the demands of a rapidly entrepreneurs who will evolving market, few leaders be upskilled to break the have left as indelible a mark barriers of entry into the as Jabulani Selumane, the sector. Once qualified, dynamic force behind the AITF. they will be able to A qualified mechanical establish, manage and engineer with a career run their own dealership spanning 14 years in businesses. These the automotive industry, women will also have a Selumane, 42, has not only full understanding of the navigated the complexities of role of the sector and Jabulani Selumane the global market, but is also how it fits into the overall spearheading a transformative approach South African economy.” that is redefining this industry’s landscape.

EDWINA WATERBOER, CO-OWNER, Relentlessly pursuing change, Selumane MCR PLASTICS is emerging as a trailblazer, setting In the heart of Uitenhage, Eastern Cape, new benchmarks and positioning the a remarkable success story is quietly organisation at the forefront of transformation unfolding. MCR Plastics, an injection conversations, especially the inclusion moulding business, stands as a testament of women-owned businesses in the to the power of vision, hard work and male-dominated automotive industry. unwavering commitment. At the helm Selumane has been solidifying the of this venture is Edwina Waterboer, company’s position through championing the co-owner, whose inspiring journey change, which involves helping has seen the company flourish and black-owned businesses to become become a thriving enterprise. This is a suppliers to established businesses tale of resilience, determination, and the within the sector. transformative support of the AITF, which “We play a key role in facilitating has elevated MCR Plastics to new heights. transformation across the sector’s be able to see other women excel in the sector. The interactive platform not only provides educational content on the different professions within the sector, spanning from machine operator to company director, but also provides interviews with women in some of these positions. In addition to this, the NAACAM Metair Skills Programme, funded by merSETA, was launched. There are currently 145 recipients of the bursary that is focused on engineering and related studies, with 46 per cent of recipients being women. These concerted efforts, championed by NAACAM and its partners, are paving the way for a brighter, more inclusive future in the automotive component manufacturing sector.

MCR Plastics has been making waves as a critical supplier to Volkswagen South Africa (VWSA), an achievement that speaks volumes about its capabilities.

Through the VWSA Trust, the company received crucial funding from the AITF, empowering it to acquire cuttingedge machinery, equipment, spacious warehousing and the essential working capital required for smooth operations. This strategic support has undoubtedly been a game-changer for the company.

In partnership with her husband, Morgan, Edwina has played a pivotal role in the company’s journey. Their visionary leadership has been instrumental in transforming MCR Plastics into a prominent industry player. Together, they’ve created a thriving business.

However, MCR Plastics’ success isn’t solely a result of the Waterboer’s remarkable efforts. The AITF’s B-BBEE (Broad-Based Black Economic Empowerment) Initiatives have played a significant role in nurturing the company’s growth. These initiatives provide invaluable guidance, assistance with certifications and support for business and market development, ensuring that MCR Plastics is on the path to sustainable success.

As a beneficiary of the AITF, MCR Plastics was invited to participate in the NAACAM Show 2023, where it showcased its capabilities and innovations.

With the AITF’s support, MCR Plastics has become a symbol of excellence in the injection moulding industry, poised to shape the future of South African manufacturing.

ISSUE 59 | NOVEMBER 2023

naamcam.indd 19

AFRICAN LEADER

19

2023/11/01 12:50 PM

ENERGY TRANSITION PIERRE HERBEN, group head of carbon neutrality and innovation at Anglo American, shares that renewable energy access is fundamental to supporting inclusive growth in the future. Moreover, it must be harnessed now if the country is to escape the grips of the current energy crisis

L

ast year’s introduction of an “unrestricted” licensing threshold for energy projects was a welcome intervention.

Equally, plans to update the Integrated Resource Plan and review existing limits on local embedded generation procurement will unlock the potential for rapid expansion of power generation capacity, while policies to enable the energy transition are being addressed by the National Energy Crisis Committee.

Pierre Herben However, the wheels of government must now turn faster than ever and move beyond the energy crisis and towards an energy transition that provides security for growth and prosperity in the long term.

According to an Economist Impact report, Powering Progress: Policy shifts and economic frameworks to enable South Africa’s energy transition, only well-co-ordinated, progressive and fundamental changes to the country’s energy mix will provide the best route to a prosperous, low-carbon and energy-secure future.

A critical area needing urgent focus remains grid development, access and connectivity. According to research commissioned by the National Business Institute, at least 190GW of renewable energy is needed by 2050 to decarbonise the power sector and realise South Africa’s low-carbon ambitions.

The mining industry has already started doing its part to answer the call for clean energy with a pipeline of over 6.5GW of sustainable energy projects.

20

Across many other industries, companies are on the same path, signalling a commitment to making the energy transition real and inclusive. To support this future growth, greater grid availability will be critical to delivering renewable energy projects for public and private investments.

There has never been a more important time for the development of public-private partnerships between the government and business, marrying private-sector financing and technical expertise with efficient and simplified government processes to develop much-needed grid connection capacity.

RE A

D MORE

Read more about Pierre Herben’s views on why moving decisively to address gaps across the country’s energy landscape can lead South Africa to begin laying the foundation for a sustainable and inclusive energy future.

CHINA AND SA FORGE ENERGY DEVELOPMENT PARTNERSHIP The recent announcement by Minister of Electricity Dr Kgosientsho Ramokgopa of a framework agreement on co-operation in green energy, signed with his Chinese counterpart at the recent BRICS meeting, offers hope to a nation reeling under load shedding.

Media reports indicate that the Chinese commitment to South Africa encompasses over R500-million worth of equipment and energy assistance. A donation of emergency power equipment worth around R167-million will be offered in an effort to alleviate our country’s electricity generation challenges.

This is expected to be used to power major public facilities, such as hospitals, clinics and correctional services.

South Africa’s biggest trading partner has also agreed to help the country to improve its ageing coal-fired electricity generation units and to expand its transmission lines.

Dr Kgosientsho Ramokgopa

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

Energy_subbed.indd 20

2023/11/01 1:16 PM

ENERGY

WILL THE FUTURE BE GREEN? Creating a hydrogen economy in South Africa is about more than just energy transition. By VIREN SOOKHUN, managing director at Oxyon

G

reen hydrogen is about more than just replacing fossil fuels. Building a hydrogen economy in South Africa presents a significant opportunity for skills development, local content and social upliftment.

A just energy transition requires more than moving away from fossil fuels; it also requires a concurrent social transition that uplifts the people of South Africa and Africa as a whole. There is opportunity to use the funding, loans and grants available to invest in the future and ensure that, in the coming years, the standard of living of even the poorest in our society will be far higher than currently.

One of the best ways to do this is to expand the definition of local content beyond just using local people for employment and procurement. By opening the parameters and allowing for a portion of the total contract value of green hydrogen projects to be used for people development, we can create a broader economic and social impact.

Investing in people beyond those directly involved in projects, training them and skilling them to enable upliftment will facilitate their growth and have a ripple effect on wider communities.

MOVING UP THE VALUE CHAIN One area where funds can and should be used is setting up component manufacturing facilities for the various

parts of renewable energy production, from wind turbine blades to solar panels and batteries. If these are set up in Special Economic Zones (SEZs), the surrounding communities can also have a stake while the country moves up the value chain as locally manufactured components can decrease cost, add value and reduce carbon footprint.

Engagement with the communities to determine and prioritise their development needs is important. Often, community development initiatives are not conducted in consultation with the communities, and the result is something not necessarily of great use – for example, the construction of a sports stadium when a hospital or a school would be more beneficial.

In addition, community leaders need to be upskilled to understand the investment, use financial grants wisely and grow the money for continuous development.

South Africa has a large proportion of unemployed youth who are ideal candidates for training in skills around the fourth industrial revolution (4IR) and science, technology, engineering, and mathematics subjects. This knowledge is essential for hydrogen and renewable energy technologies as well as a host of essential future endeavours. We also need to focus on skills development around 4IR from the ground up, starting as soon as early childhood development education.

A MOVE TOWARDS SELF-SUFFICIENCY Africa cannot be a developing economy forever; we need to use the fund inflows that are part of the just energy transition to invest wisely so we can become self-sufficient in the future.

Expanding the definition of “local content” will allow investment into community development, skills development and transfer of skills, education, training, and establishing component manufacturing factories locally, creating jobs and value down the line.

It is also essential for corporate social investment (CSI) to move beyond a tick-box exercise – it must be meaningful, fully thought through, sustainable and centred on giving back to communities.

CSI is not just about building and equipping schools in rural communities.

CSI opportunities can also be found in value chains, such as transport and logistics, ports, green hydrogen refuelling networks, and construction and civils.

By creating local component manufacturing, investing in innovative skills development and focusing on creating value through effective CSI and community initiatives, we can move the continent forward and become more globally competitive.

Image: supplied

Viren Sookhun

South Africa has a large proportion of unemployed youth who are ideal candidates for training in skills around the fourth industrial revolution and science, technology, engineering and mathematics subjects.

ISSUE 59 | NOVEMBER 2023

Energy_subbed.indd 21

AFRICAN LEADER

21

2023/11/01 1:17 PM

DRIVING COLLABORATIVE ECONOMIC ECOSYSTEMS As we approach the Global Entrepreneurship Congress for Africa in 2024, BUSANI MOYO looks at what it means to advance entrepreneurial activity to build economies and expand human welfare

T

o say that South Africa faces a development conundrum is quite an understatement.

The country’s development challenges can be seen in the numbers that often speak for themselves. For instance, in May 2023, Statistics South Africa reported that the country’s unemployment rate was 32.9 per cent; among the highest in the world. On the other hand, the World Bank shares that “although South Africa has made progress in reducing poverty since 1994, the trajectory of poverty reduction was reversed between 2011 and 2015, threatening to erode some of the gains made since 1994”. It also reports that over half of the country’s population lives in poverty.

The good news is that the answer to South Africa’s development problem is known: inclusive, sustainable growth involving entrepreneurs. This view is supported by the African Development Bank, which states: “Entrepreneurship must be at the heart of efforts to transform Africa’s economic prospects.”

The multilateral development finance institution adds: “The right interventions could open the door for the continent’s young and dynamic entrepreneurs and help build linkages with the large firms that are the key drivers of supply chains to create jobs and revenues to help scale up businesses.”

In South Africa, the numbers also tell the story of the role of entrepreneurship.

For example, a recent report published by global management consulting firm McKinsey concludes: “SMEs across South Africa represent more than

22

98 per cent of businesses, employ between 50 and 60 per cent of the country’s workforce across all sectors and are responsible for a quarter of the job growth in the private sector.”

DEVELOPMENT CHALLENGES In September 2021, delivering his keynote address at the launch of the book, Structural Transformation in South Africa: The Challenges of Inclusive Industrial Development in a Middle-Income Country, Minister of Finance Enoch Godongana indicated that his government is clear about the country’s challenges.

On that occasion, Godongwana was not in the mood to sugarcoat anything. He said: “Our reality is that the current state of the South African economy is unsustainable. Real Kizito Okechukwu gross domestic product (GDP) per capita has been declining since 2015. Productivity growth has been slow and appears to be slowing down further and the unemployment rate has recently increased to record highs of 34.4 per cent.”

THE ANSWER: INCLUSIVE AND SUSTAINABLE GROWTH While it is generally accepted that development and economic growth can help reduce poverty and improve human welfare, there is a catch. The United Kingdoms’s Department for

International Development (DFDI) puts things into perspective: “The extent to which growth reduces poverty depends on the degree to which the poor participate in the growth process and share in its proceeds.” It adds: “Thus, both the pace and pattern of growth matter for reducing poverty.”

A careful analysis of the DFDI perspective above shows that the concern should not just be with developing policies that spur growth, but also guaranteeing measures to ensure that the fruits of growth are also enjoyed by the poor. The DFDI puts it succinctly: “The challenge for policy is to combine growth-promoting policies with policies that allow the poor to participate fully in the opportunities unleashed and so contribute to that growth.”

For Kizito Okechukwu, the executive head at 22 On Sloane – the largest start-up campus in Africa – being inclusive means involving all entrepreneurs, including those in the informal sector. Okechukwu says the informal sector should be sustained as it “supports even the formal sector because there are many things the formal sector will not be able to do, and the informal sector provides that.” He posits that the most important question relates to how this sector can be supported to thrive, create more jobs and add to the country’s GDP.

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

entrepreneurship_subbed.indd 22

2023/11/01 1:07 PM

ENTREPRENEURSHIP

THE VALUE OF COLLABORATIVE ECONOMIC ECOSYSTEMS

THE TECH INNOVATION AGENCY: BRIDGING THE GAP Central to sustainable growth for entrepreneurs is the ability to leverage research to make informed decisions and keep up with trends. Realising the importance of research in the entrepreneurial journey, the Department of Science & Innovation created the Technology Innovation Agency.

Concerned with driving collaborative ecosystems and facilitating sustainable growth for entrepreneurs, the Technology Innovation Agency is involved in: • Stimulating technological innovation to expand the human welfare of South Africans.

• Bridging the innovation gap between research from higher learning institutions and implementation in the country’s economic sectors.

• Providing seed funding through the Seed Fund, the Technology Development Fund and the Commercialisation Support Fund.

• Ensuring that allocated funds are used as intended by providing support before and after the disbursement of the funds.

• Helping translate South Africa’s knowledge resources into sustainable socioeconomic opportunities.

The work of the Technology Innovation Agency is Winners of the SAIS TIA10X Competition a true reflection of the power of bringing together role players, higher education institutions, science councils, public entities, the private sector and commercial operations to improve economic growth, which will eventually result in a better quality of life for South Africans.

Mahlatse Tolamo, head of stakeholder relations at 22 On Sloane, suggests that if entrepreneurs are to help drive sustainable economic growth in such a way that they help build economies and expand human welfare, collaboration will play a huge role. She says: “We believe it takes a combination of organisations to strengthen the ecosystem for entrepreneurs to get access to the resources required in the start-up cycle.”

Tolamo explains that in advancing entrepreneurial activity to build economies and expand human welfare, “it’s vital for the ecosystem to have the start-up at the centre with the right players to assist in their development.”

She adds: “As such, financial institutions, corporates, and Mahlatse Tolamo government partners must be involved from the beginning to make the journey inclusive and sustainable through co-creation and collaborations.”

A PP

LY NOW

GET FUNDING FROM THE TECHNOLOGY INNOVATION AGENCY

BMF SMME DESK

Images: supplied

The BMF remains committed to creating a community of entrepreneurs, start-ups, investors and various support organisations that collaborate and assist each other to foster innovation, growth and success. This entrepreneurial ecosystem is not only a strategic move, but also a manifestation of the BMF’s commitment to its mission and its unwavering dedication to driving socioeconomic transformation in South Africa. By embracing this transformative journey, the BMF continues to be a prominent force for change and remains a cornerstone of leadership and empowerment in the nonprofit landscape.

The BMF SMME Desk aims to: • Advance SMMEs (small, medium and micro enterprises) in Southern Africa, primarily black-owned SMMEs, to contribute to the transformation of the South African business landscape.

• Facilitate member participation in initiatives promoting SMME development, economic growth and job creation.

• Increase members’ involvement in broad-based black economic programmes, ensuring they benefit from the available developmental opportunities.

RE A D NOW

MCKINSEY REPORT ON SMEs

REG I

S TER N

ISSUE 59 | NOVEMBER 2023

entrepreneurship_subbed.indd 23

OW

ABOUT THE BMF SMME DESK

AFRICAN LEADER

23

2023/11/01 1:08 PM

QS World University Rankings by Subject 2023

First in South Africa Accounting and Finance

101–150

Economics and Econometrics

251–300

Second in South Africa Social Sciences and Management

283

Faculty of Economic and Management Sciences Fakulteit Ekonomiese en Bestuurswetenskappe Lefapha la Disaense tša Ekonomi le Taolo

ADVERTORIAL: FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES, UNIVERSITY OF PRETORIA

EMPOWERING FUTURE LEADERS PROFESSOR MARGARET CHITIGA-MABUGU, dean of the Faculty of Economic and Management Sciences at the University of Pretoria, discusses the need for educational institutions to equip students with the critical skills needed to navigate the ever-evolving digital landscape

I

n today’s world, marred by intricate societal challenges, collaboration among diverse minds to pool skills, expertise and knowledge is pivotal to resolving the challenges we face. Young people with potential can harness the digital revolution for innovative problem-solving to ensure a prosperous South Africa. At the University of Pretoria’s (UP) Faculty of Economic and Management Sciences (EMS), we are dedicated to producing innovative graduates who will co-create value for society in this digital age.

The rapid pace of technological advancements needs innovative thinking to keep up with the ever-changing digital landscape. Innovation is crucial for shaping our future, driving positive change and equipping students for the evolving work landscape.

To ensure education remains relevant, higher education institutions must future-proof their curriculum and academic programmes. As we address unemployment, a forward-thinking approach is essential, especially in light of pervasive technological advancements and the disruptive influence of the fourth industrial revolution. For young people, our future assets, acquiring the requisite skills is crucial for them to thrive in this evolving landscape.

The impact of technology on the labour market often centres on job creation and destruction. Technology is often viewed as either displacing or reinstating labour. If technology displaces workers, jobs are lost.

Conversely, if technology creates or reinstates work, jobs are created. But, does technology create more jobs than it eliminates?

Prof Margaret Chitiga-Mabugu

The World Economic Forum estimates that by 2025, technology will create at least 12 million more jobs than it eliminates.

How many of these new jobs will be in South Africa?

The answer lies in our ability to equip young people with the relevant digital skills. Therefore, it is critical that the faculty produces employable graduates capable of capitalising on these technological advancements. UP took a significant step in this direction by launching the Digital Capability Lab in 2022, a vital initiative aimed at equipping students with the skills necessary for the future world of work.

The lab develops students into innovative, solution-driven individuals ready to meet the challenges of the evolving job market.

A MULTIFACETED APPROACH In the face of our current economic climate and high unemployment rates, a multifaceted approach is essential to address unemployment comprehensively.

Adapting curricula to be future-ready is vital, but fostering an entrepreneurial spirit among students is equally important.

Initiatives such as the Mamelodi Business Hub, play a significant role in addressing unemployment in South Africa.

The Hub empowers young people with entrepreneurial skills and is a beacon of hope in our efforts to collectively tackle unemployment. By bridging the skills gap and nurturing future employers, initiatives such as these contribute to positive societal impact.

As researchers and knowledge producers, we must envision the future of work in the digital era. Our Centre for the Future of Work in the faculty is pivotal in ensuring the university remains at the forefront of evolving skill requirements.

We must apply our intellectual acumen to research this future landscape, anticipate challenges and devise innovative solutions.

Digital transformation is at the core of this preparation. By fostering critical thinking, problem-solving, creativity and adaptability, we enable our students to navigate the dynamic challenges of the digital age effectively.

As academic leaders, we bear a significant responsibility: to equip students with essential skills that transcend beyond employability. We aim to foster the development of visionary leaders, capable of steering society towards progress in the digital age. This formidable task needs a proactive approach that involves instilling a culture of entrepreneurship, honing digital skills and forging strategic partnerships with public and private sectors.

In essence, the University of Pretoria’s approach is holistic. We prepare our students to embrace innovation, entrepreneurship and critical thinking. We ensure they are not just employees, but also creators and leaders in the digital workforce. Through our initiatives and research, we contribute to the success of our students and the prosperity of South Africa in the digital age.

www.up.ac.za/facultyof-economic-andmanagement-sciences

ISSUE 57 | OCTOBER 2023

AFRICAN LEADER

25

NAVIGATING EMPLOYMENT EQUITY REPORTING

Guidelines and insights for 2023 from the BEE Chamber Compliance with employment equity reporting holds significance for organisations aiming to foster inclusive and diverse workplaces. FRIK BOONZAAIER, senior human capital consultant at the BEE Chamber, shares that the Department of Labour’s recent EE roadshow shed light on key updates and insights for the 2023 reporting period

T

he reporting period commenced on 1 September 2023, encompassing both manual and online submission methods.

Manual employment equity (EE) submissions closed on 1 October 2023, while online submissions will be accepted until midnight on 15 January 2024.

These dates mark critical milestones for organisations to present their EE reports, ensuring alignment with legal requirements and demonstrating their commitment to equitable workplaces.

A prominent aspect highlighted during the roadshow is the absence of an effective date for impending amendments to the Employment Equity Act (EEA) therefore the 2013 Amendments to the Act remains for this reporting period.

This situation carries several implications: Inspections will continue as per the regulations outlined in the 2013 amendments.

• Businesses with less than 50 employees but surpass the turnover threshold must still adhere to designated employer obligations.

• Companies transitioning from designated to nondesignated status after the effective date are advised not to deregister if they require a Certificate of Compliance.

• Expiry of existing EE plans or imminent expiration necessitates proactiveness, as inspections can occur before the effective date.

• While the duration of EE plans remains unamended (between one to five years), uncertainty persists regarding the practical implementation of shorter

26

AFRICAN LEADER ISSUE 59 | NOVEMBER 2023

durations than the five-year duration of each round of sectoral targets.

SECTORAL TARGETS The concept of sectoral targets emerged as a pivotal topic during the roadshow. The demographic transformation benchmark remains the economically active population (EAP), while sectoral targets serve as interim milestones toward achieving EAP goals.

An important point highlighted is that transformation should occur through natural attrition, avoiding dismissals or retrenchments.

The formulation of draft sectoral targets followed a comprehensive process, involving stakeholder engagements, written submissions, EAP data analysis, B-BBEE sector codes and unique sector dynamics.

These targets are more flexible benchmarks than rigid quotas, affording designated employers the ability to self-regulate and consult employees in their pursuit of achieving five-year sectoral targets. In cases of failure to meet these targets, explanations justifying this can be provided, adding a layer of adaptability to the process.

THE SHIFT TO EQUITY The evolution from rigid quotas to flexible sectoral targets underscores a strategic shift towards equitable workplaces through collaborative transformation.

Companies should seize this opportunity to engage with their employees, adapt their EE plans, and embrace diversity

and inclusivity. Ultimately, EE reporting is not merely a regulatory obligation, but a testament to an organisation’s commitment to equality and fairness in the modern workforce.

BEE can add enormous value to an organisation, provided it is understood and implemented correctly. If we are truly committed to transformation and if we approach the EE plan and EE report effectively, it offers a structured approach that addresses the transformation of a business and ensures compliance with the legislative employment equity framework.

TIPS FOR SUCCESSFUL REPORTING • Your report needs to be accurate and honest.

• Both the EE plan and EE reports must be consulted through an EE committee with thorough understanding of the Employment Equity Act. • It is fraudulent to submit a report without a plan.

• The size of a company impacts the time needed for reporting.

So allow adequate time if you are a large business, especially for completing the EEA4 Report.

• Businesses must stay attuned to changes in reporting forms and ensure their submissions adhere to the deadlines for a successful report.

BLACK ECONOMIC EMPOWERMENT

IS BEE COOLING DOWN AMID DECLINING SUPPORT FOR SMMES? Is there adequate buy-in from corporate South Africa around supplier, skills and enterprise development as the country looks to promote and create viable black- and youth-owned small, medium and micro enterprises? BUSANI MOYO asked the B-BBEE Commission

I

t doesn’t matter what statistics you look at; there is no way of escaping the fact that South Africa has a high level of unemployment. Some reputable sources, such as the World Population Review, the nonprofit organisation that delivers up-to-date data, put South Africa in the number one spot.

If the employment situation in South Africa is depressing, the good news is that the solution is known: promoting youthand black-owned small, medium and micro enterprises (SMMEs). Productivity SA, an organisation seeking to promote employment growth and productivity, says: “Small enterprises account for most businesses and have the potential to promote domestic-driven growth of new and existing industries.”

LACK OF PROGRESS The question of whether there is support/ buy-in from corporate South Africa around supplier, skills and enterprise development was posed to Mofihli Teleki, the director of stakeholder relations and communications at the B-BBEE Commission. He shared the latest report on the effective deployment of Enterprise and Supplier Development (ESD) funds with the assurance that all the answers are in there.

According to the report, “while it is encouraging that ESD is enabled through measured entities’ compliance with B-BBEE policy/law, this is in a context of

insufficient overall progress of B-BBEE in the country, compared to the initial optimism and anticipation of the early years of democracy and national reconciliation and the Constitution’s advocacy for economic redress and inclusion”.

SMMEs LEFT OUT IN THE COLD The National Status and Trends on B-BBEE Report for 2021 tells the story of the declining enthusiasm: “... the overall achievement of the set target towards ESD declined from 61% in 2020 to 46.46% in 2021”.

“This means that many enterprises that required enhanced support in a challenging [COVID-19] environment were faced with lack of finance, resulting in [the] closure of businesses, especially the so-called exempted micro-enterprises (EMEs) and qualifying small enterprises”, reads the report.

The data from the B-BBEE Commission presents a complicated picture regarding support/buy-in from corporate South Africa around supplier, skills and enterprise development. For instance, the commission refers to a “misalignment between the preferences of measured entities and the requirements of ESD beneficiaries, as far as what ESD should best focus on”.

A DAMNING SCORECARD Suppose one considers that 65 per cent of the 2.3 million SMMEs in South Africa

SANLAM TRANSFORMATION GAUGE REPORT

Did you know?

South Africa has over 2.3 million SMMEs, and over 65 per cent are informal businesses primarily operating in poor and rural provinces.

Source: Productivity SA

are in poor rural areas, where most black people live, and racism is still an influential part of the equation. In that case, it can be concluded that there is inadequate buy-in from corporate South Africa around using black economic empowerment (BEE) to implement real transformation in South Africa. Add this to the reality that the B-BBEE Commission talks about falling expenditure and a misalignment of preferences between the beneficiaries and benefactors. Then, it becomes clear that it is necessary to go back to the drawing board.

THE SOLUTION It’s clear that there is insufficient progress, characterised by falling expenditure in supplier, skills and enterprise development expenditure relating to SMMEs. The B-BBEE Commission suggests that the “reorientation of ESD deserves serious engagement by government in partnership with the private sector”.

DO

A W NL O D REP

ISSUE 59 | NOVEMBER 2023

O RT

Over half of the BEE verification agencies that participated in the research that produced the 2023 Sanlam Transformation Gauge Report agree that race is still a huge factor. For instance, the report indicated that “resistance by corporate South Africa to seeing black people in leadership positions” was the number one culprit behind the slow pace of transformation.

DETERMINING THE EFFECTIVE IMPLEMENTATION OF ESD FUNDS REPORT

AFRICAN LEADER

27