Empowerment - June 2019

EMPOWERMENTJJUUNNEE22001189
IN ASSOCIATION WITH THE www.businessmediamags.co.za
BLACK MANAGEMENT FORUM

Beverages

South Africa





MOST EMPOWERED

FOOD AND FISHING COMPANY ON THE JSE

Sea Harvest is honoured to be the transformation leader in its sector

we also want to help address the challenges facing

our country through enterprise development, skills

development, socioeconomic development and the

other pillars that constitute transformation,” explains

the chairman of the SHG board and Brimstone,

Fred Robertson.

About 70% of middle and senior management

and 97% of all Sea Harvest staff are black, while the

majority of the SHG board is black and 30% is female.

Initiatives that have allowed Sea Harvest to boost

transformation include the formation of employee

share trusts — with a current combined market

value of approximately R80-million — that allow

employees to benefit in dividend declarations; a

rigorous recruitment policy; and a R17-million per

annum learning and development programme.

During the past year, the company continued

Sea Harvest service provider, Michael Madangatya to make strides in its transformation ambitions
by implementing a management development

Since the advent of democracy in 1994, Sea to empower the previously disadvantaged. This has programme for high-performing employees from
Harvest Group Limited (Sea Harvest/SHG) taken Sea Harvest from a Level 4 Broad-based Black previously disadvantaged backgrounds.
has been committed to the new South Economic Empowerment (B-bBEE) company 10 years
Africa and promoting transformation ago to a Level 1 company in 2018. Over the past two Twenty years ago, Sea Harvest was instrumental
in the creation of the West Coast Business
Development Centre, which provides services and

and access to the fishing industry for the decades, we have achieved consistent success on mentorship for small-, medium- and micro-sized

previously marginalised in our society. This steadfast our ambitious transformation path, spearheaded by enterprises (SMMEs). The company’s procurement

commitment has seen the company transform in Brimstone becoming a shareholder in the business, policies, meanwhile, have resulted in about R666-

all facets, underpinned by majority shareholder which has resulted in our about 80% black ownership million being spent during the 2018 financial year on

Brimstone Investment Corporation’s (Brimstone) (up from 21% 15 years ago) and overall B-bBEE score of more than 170 suppliers, 55% of which are majority

vision of profitability, empowerment and positive 100.37%; the latter being above other sectors in black-owned and managed.

social impact. The dedication to a holistic 20-year the economy.” To fast track transformation within the broader

transformation journey within the organisation “As a responsible South African, JSE-listed fishing industry, Sea Harvest recently led a black

culminated in Sea Harvest being named the most company, our driving force is not just generating consortium in the purchase of the majority white-

empowered fishing and food company on the profits. While we are in the business of generating owned Viking Fishing Group, contributing to the

Johannesburg Stock Exchange (JSE) in a special report profits and creating wealth for our shareholders, establishment and furtherance of sizeable operational

about the empowerment credentials of JSE-listed

companies, published by Independent Media in “Driving transformation is and has been a non-negotiable
partnership with Empowerdex and Intellidex in

November 2018. for us for a very long time. We have worked hard to ensure
Sea Harvest CEO Felix Ratheb says: “Driving that we support the government’s endeavour to empower
the previously disadvantaged.” – Felix Ratheb 
transformation is and has been a non-negotiable for
us for a very long time. We have worked hard to
ensure that we support the government’s endeavour

2 EMPOWERMENT

ADVERTORIAL

Sea Harvest employees who completed a Management Development Programme (MDP) in 2018.

black industrialists and new black entrants into the benefit, uplift and empower communities throughout

fishing industry. Together with its BEE partners, the South Africa, but predominantly in the Western CONTACT DETAILS

company believes that this acquisition will promote Cape. “Our foundation has specific focus areas, CAPE TOWN:
Physical Address: 1st Floor, Block C,
inclusive economic growth and participation through including early childhood development, education, The Boulevard, Searle Street, Woodstock,
7925, Cape Town, South Africa
access, diversity, empowerment and transformation health, and business and sports development. Telephone: + 27 (0) 21 468 7900
Fax: + 27 [0] 21 465 5883
within the fishing industry and the Over the past year, we’ve committed
SALDANHA:
greater South African economy. The about R3-million to these focus Physical Address: Government Jetty,
Saldanha Road, Saldanha, 7395,
transaction also allowed Viking areas, predominantly in the local South Africa
Telephone: + 27 (0) 22 701 4100
Fishing Group staff, who communities where we operate. Fax: + 27 (0) 22 714 3555

held shares in the company As we move into the future, V&A WATERFRONT:
Physical Address: South Arm 4, Table Bay
through the Viking Employee we look forward to taking the Harbour, Cape Town, 8001, South Africa
Telephone: +27 (0) 21 419 4140
Share Trust, to receive a R120- local communities that we Fax: +27 (0) 21 419 6731

million payout. In addition, in serve along with us on our PO Box 761, Cape Town, 8000
[email protected]
partnership with Brimstone, growth journey.” www.seaharvest.co.za

Sea Harvest has established Ratheb says Sea Harvest is

a R100-million South African Sea Harvest employee, immensely proud of its rating
fisheries development fund for Samkelo Nikilane as the most empowered food

SMMEs, which will include the and fishing company on the JSE.

creation of a subsidised accidental “We believe that we are now further

death and disability policy for small- and aligned with the objectives pertaining to job

medium-scale fishers. The primary objective of creation and the transformation of the South

the fund is to transform the fishing industry African economy, as espoused in the National

from the ground up by assisting smaller quota Development Plan. This also allows us to

holders and new entrants to acquire vessels, support Operation Phakisa in fully realising the

catch their quotas, process catches, and potential of the oceans economy, as advocated

access markets. by the Office of the Presidency of the Republic of

Ratheb adds that investing in local communities South Africa.

IMAGES: SUPPLIED through the Sea Harvest foundation not-for-profit “The legacy we are creating is to see our

company is another way in which Sea Harvest tries employees and their families, local communities

to bring about social change. Through the foundation, and South Africa grow and flourish now and

Sea Harvest also directs funds towards projects that well into the future,” concludes Ratheb.

EMPOWERMENT 3



EMPOWERMENTJJUUNNEE22001189
IN ASSOCIATION WITH THE www.businessmediamags.co.za
BLACK MANAGEMENT FORUM

ON THE COVER:
Top, from left: Professor Jonathan
Jansen, Andile Nomlala, Bonang Mohale.
Middle, from left: Ncebakazi Mnukwana,
Judi Nwokedi, Tasneem Fredericks.
Bottom: Zodwa Ntuli.

Beverages
South Africa

c on t en t sEMPOWERMENT_2019.indd1 5/31/19 1:56 PM

6 FROM THE EDITOR 24 government’s commitment 46 entrepreneurship

The changes and challenges of our The terminology has shifted, but has the Entrepreneurs are often bogged down
country’s empowerment and base of B-bBEE beneficiaries increased? by a lack of finance and business skills
transformation journey
29 land 49 the oceans economy
11 bmf president’s report
Of all the issues that swayed voters during The jury is still out on Operation
Andile Nomlala says that now more South Africa’s 2019 general elections, none Phakisa, but SA boat-builders are ready
than ever, the BMF has a critical role was as polarising as the issue of land to contribute
to play in rallying black people and
driving socioeconomic transformation 38 SUCCESS STORIES 50 employment equity

12 bmf DEPUTY PRESIDENt’s note A number of small-scale companies are What are the challenges around creating
reaping the benefits of transformation real balance in the workplace?
Tasneem Fredericks goes to the heart of
the gender (dis)parity issues in SA 42 education 54 policing B-bBEE

15 bmf: ethos and history Is our education system geared towards Fronting and corruption is set to be
turning out empowered and economically stamped out as the B-bBEE Commission
Still a watchdog for transformation and active citizens? monitors and enforces BEE codes
good governance
45 UNEMPLOYMENT 58 diversity
19 BMF: governance
The ever-increasing rate of unemployment Despite JSE-listing requirements,
There was a time when SA leadership in post-democratic SA is both alarming the pace of change at boardroom level
got it right and discouraging remains slow

29 38

54

12

EMPOWERMENT 5

FROM THE EDITOR

CHANGES AND PUBLISHED BY

CHALLENGES A Tiso Blackstar Group Business

T his year, South Africans are celebrating the triple challenges of unemployment, poverty Picasso Headline IMAGE: HENRY ISAACS
25 years of democracy and we and inequality. The most recent figures 13th Floor, 2 Long Street, Cape Town, 8001
voted for the sixth time in released by Statistics SA show that Tel: +27 21 469 2400 Fax: +27 86 682 2926
national and provincial unemployment, which is a good
elections. Nationally marker of (lack of) progress www.businessmediamags.co.za
and provincially, we have in any economy, had
given a new mandate to gone up to 27.6 per cent EDITORIAL
the government to take from 27.1 per cent in the
our country forward. previous quarter. Editor: Ryland Fisher
South Africa’s economy Content Manager: Raina Julies
It is an opportune time remained resilient despite
to reflect on where we as some setbacks over the [email protected]
a country have come from past 10 years especially. Copy Editor: Brenda Bryden
and how far we still have Some of the economic Contributors: Nafisa Akabor, Jermaine Craig,
to go to deliver on the ANC’s pressure came from outside Duma Gqubule, Caiphus Kgosana,
first election promise of “a — such as the global recession
better life for all”. — but some of it was due to internal Tiisetso Tlelima
Content Co-ordinator: Vanessa Payne
Many people tend to pressure, like the corruption that is now being
forget that until 25 years unpacked with sickening regularity at the Zondo DESIGN
ago, our economy was Commission into State Capture.
a closed one meant to Head of Design: Jayne Macé-Ferguson
benefit only a minority Against this background, there is a need Senior Designers: Archie Ndzo,
of people in our country. to remain focused on the broad goal of Lesley-Ann van Schalkwyk
The majority of our people transforming our economy, to make it
... were discouraged more inclusive. Advert Designer: Bulelwa Sotashe
from pursuing careers in
business through a lack of Many people tend to forget that until 25 years SALES
educational opportunities ago, our economy was a closed one meant to
or finance. benefit only a minority of people in our country. Project Manager: Jerome van der Merwe
The majority of our people did not have access [email protected] | +27 21 469 2485
The sad reality is that, while we have made to the economy and were discouraged from
significant progress, all of this is overshadowed pursuing careers in business through a lack of Sales Team: Jacqueline Bezuidenhout,
by our inability to comprehensively deal with educational opportunities or finance. Zukisani Silwana, Frank Simons

South Africa today looks very different from PRODUCTION
what it did 25 years ago, but there is still lots
to do to involve more people in the economy Production Editor: Shamiela Brenner
and to ensure that more people benefit from Advertising Co-ordinator: Johan Labuschagne
opportunities that have been made available in
our democracy. Subscriptions and Distribution:
Shumiera Fredericks
This issue of Empowerment looks at some of the
areas where there have been positive changes [email protected]
in our society, but also at some of the many
challenges that still remain. ■ MANAGEMENT

Ryland Fisher Senior Bookkeeper: Deidre Musha
Business Manager: Lodewyk van der Walt
Editor 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. Empowerment

is published by Picasso Headline. The opinions
expressed are not necessarily those of Picasso
Headline. All advertisements/advertorials and
promotions have been paid for and therefore do not

carry any endorsement by the publisher.

6 EMPOWERMENT



REFRESHING,
EMPOWERING AND
TRANSFORMING
A NATION

Coca-Cola Beverages South Africa (CCBSA) is
a proudly South African and African company
that began operating as a legal entity in July
2016, after the merger of six entities.

CCBSA is the largest Coca-Cola bottler in continent a better place for all. Currently, the CCBA business culture to reflect our African identity. We
South Africa. The company employs over serves 10 countries in sub-Saharan Africa, including accelerate sustainable, profitable revenue growth
7 000 employees at its headquarters in South Africa, Kenya, Ethiopia, Mozambique, Tanzania, across all categories and offer an innovative portfolio
Olifantsfontein, Midrand and 13 of its Uganda, Namibia, Ghana, Mayotte and the Comoros. of products that respond to customer needs and
manufacturing facilities across the country. consumer preferences. We believe that profitability
CCBSA is a subsidiary of Coca-Cola Beverages The company manufactures and distributes Coca- is important, but not at any cost. People matter; our
Africa (CCBA), present in the continent since 1928. Cola beverages that make life’s everyday moments planet matters. We do business the right way by
CCBA is the seventh largest Coca-Cola bottling more enjoyable while conducting business the following our values and partnering for solutions that
partner worldwide by revenue and the biggest on right way. The result is shared opportunity for its benefit us all,” explains Tshidi Ramogase, the director
the African continent, accounting for about 40 per customers, its employees, the communities where it of public affairs and communications at CCBSA.“
cent of all Coca-Cola volumes sold in Africa and. The is located, and the shareholders.
company’s vision is to refresh Africa and make our We aspire to be the best Coca-Cola bottler in
“We conduct our business ethically, transparently the world and Africa’s most valuable independent
and conscientiously and we espouse an inclusive

8 EMPOWERMENT

ADVERTORIAL

food and beverage company, driven by engaged, retailing, entrepreneurship, and community are aligned to government’s strategic objective of
motivated and capable employees. CCBSA’s development as well as ownership. youth and women empowerment.
business strategy is to pursue strong top line
growth, superior customer service, productivity “We believe that our transformation strategy “As a company, we believe in the notion that
that funds market-facing investments, and to is aligned to the government’s focus, reflected on achieving equality and empowerment for women
build a great reputation and advocacy. the B-bBEE scorecard. The Department of Trade has both immediate impacts that benefit them
and Industry (dti) highlights the need for greater directly and larger ripple effects that are good for
“We believe that we are a world-class, customer- support for entrepreneurship and the creation society more broadly. Our aim is to enable the
orientated, socially and environmentally of access to market channels for small and economic empowerment of women and youth
conscious fast-moving consumer goods (FMCG) medium enterprises. As CCBSA, we believe that entrepreneurs throughout the SA value chain with a
company. Sales and distribution excellence are our transformation strategy responds to this call focus on rural areas and townships,” Ramagose says.
our core strengths. as well as to the president’s call for job creation CCBSA’s focused initiatives include:
among young people,” says Ramagose. • Bizniz in A box: a youth and women
“Furthermore, our goal to build a strong business
can only be achieved through the support and “We believe that engagement entrepreneurship programme.
long-term prosperity and collaboration with and collaboration are • Grow my business: a retail development
our governments.
important to the attainment programme that seeks to train and develop
CCBSA’s a stronger, more successful beverage of our country’s strategic over 25 000 small business people by 2020 to
bottling business, we will create greater shared improve the sustainability of the outlets in
opportunity for the business as well as the goals. As a company the local and traditional market. Cumulatively
communities we serve across the value chain operating in SA we are since the merger in 2016, the company has
through job creation, skills development and committed to complying trained 10 268 outlets.
support for small- and medium-sized enterprises,” with regulation and playing • Agriculture development through the
she says. our role in contributing CCBSA Mintirho Foundation: where CCBSA
towards the growth of our has committed R400m to the development of
CCBSA’S EMPOWERMENT VISION economy and development black emerging farmers over a period of five
of our communities.” years and potentially integrated some of them
CCBSA’s transformation plan is informed by the into the company’s value chain.
company’s aspirations to become the benchmark THE JOURNEY SO FAR “We believe that collaboration between
for corporate citizenship while complying government and business can go a long way towards
with the country’s legislative requirements. In response to the Enterprise and Supplier dealing with the country’s challenges, as no single
CBSA’s aspirations to become a front-runner in Development requirement. entity can manage the scourge of unemployment,
transformation and community development job creation, and environmental sustainability,
are well articulated and spearheaded by CCBSA CCBSA Enterprise and Supplier Development among others, on its own. And government’s role is
executive directors. Strategy is integrated with the business model and to create a conducive environment for industry to
seeks to: thrive and reinvest in the economy.
Its ambition to empower communities and • Integrate SMMEs into its main supply chain “We believe that engagement and collaboration
transform its workforce is reflected in the are important to the attainment of our country’s
company’s transformation strategy end goal to (suppliers and distributors and retailers) strategic goals. As a company operating in SA
become a level 2 Bb-BEE contributor by 2021. • Empower communities where it is doing business we are committed to complying with regulation
CCBSA has identified key transformation strategic and playing our role in contributing towards the
priorities in the areas of employment equity and (developing entrepreneurs in the community) growth of our economy and development of our
diversity, supplier development, distribution, • Create jobs communities,” concludes Ramagose.

In support of this strategy, in 2018, CCBSA www.coke.co.za
committed to shifting over R3.9-billion of its
procurement spend to black-owned, black-women-
owned companies over three years. By end 2018,
the company had disbursed R1.5-billion, exceeding
the target by R200-million. The company further
announced a R100-million development fund
towards the capacity building of black and black-
women-owned businesses.

In response to the socioeconomic requirements,
the company’s community development initiatives

EMPOWERMENT 9



BMF PRESIDENT’S REPORT

FASTOTRFATCRKIANNG STHFEOSROMCIAALTCIOONMPACT

Now more than ever, the BMF has a critical role to play in rallying black people and
driving socioeconomic transformation, writes Andile Nomlala

IMAGES: SUPPLIED T he key to much-needed transformation and Andile Nomlala I am confident that the
inclusive economic growth in South Africa Black Management Forum
does not lie in the creation of more neatly and Semi-skilled labour positions were mostly held by has a critical leadership
meticulously written policies and legislation, black people at 76.8 per cent. At the unskilled level,
but in ethical and accountable leadership in 83.5 per cent of positions are held by black people. role to play under the
both the public and private sectors that commits to the favourable conditions
transformation project of South Africa. The 18th CEE report unsurprisingly showed that
the pace of transformation was lacking, especially in of today.
Government, civil society, the business community, the upper levels of management where white people
the Black Management Forum (BMF) and its (especially males) still dominate. Most importantly, black professionals need to
counterparts need to make inclusive economic deliberately rally behind each other in their quest
growth and transformation a priority. ACHIEVING A JUST AND EQUITABLE SOCIETY for transformation.

The “rainbow nation” has revealed all its The BMF’s role in revolutionising the SA economy World-renowned singer, actress, dancer and
displeasing stripes over the past few years: a rise remains a critical one as confirmed by South Africa’s businesswoman Beyoncé’s Homecoming performance
in incidents of racism, tribalism, xenophobia, first black president, Nelson Rolihlahla Mandela, at Coachella beautifully exemplifies this notion.
factionalism and continued high levels of gender- during his speech at the BMF’s 1995 Annual Beyoncé, in April 2018, was the first African-
based violence. Conference when he said: “I am confident that the American woman to headline Coachella, which is
Black Management Forum, which represents a sector a historically white-dominated music festival held
The Department of Labour’s 18th CEE report of society that formed itself under the most difficult of annually in California, United States of America.
showed that 67.7 per cent of top management circumstances and when opportunities were few, has According to Beyoncé, it was important to her
positions were occupied by whites, 14.3 per cent by a critical leadership role to play under the favourable that everyone who had never seen themselves
Africans, 5.1 per cent by coloureds, 9.45 per cent by conditions of today”. represented felt like they were on stage.
Indians and 3.4 per cent by foreign nationals.
Therefore, advancing socioeconomic She made sure that she employed black people
Men occupied 77.1 per cent of top management transformation towards institutionalised, entrenched to work with her for her ensemble, from the
positions, 22.9 per cent by women and people with transformation and black excellence in a society that dancers, band, to the singers and the crew. She gave
disabilities constituted 1.3 per cent. is just, fair and equitable is what we stand for and opportunity to her fellow black counterparts —
what we seek to achieve. opportunities which they would normally not have,
White people held 56.1 per cent of senior especially at a predominantly white festival such
management positions, black people held 22.1 per as Coachella.
cent, Indian people held 10.9 per cent, coloured people
held 7.7 per cent and foreign nationals held 3.2 per What Beyoncé did was champion transformation
cent in their professionally qualified category. in her own right. She decolonised a stage, one that
made its name as a white indie rock festival. And that
Technically skilled positions were mostly held by is what made her performance so rare and
black people at 60.2 per cent followed by white people much needed.
at 20.8 per cent, coloured people at 11.5 per cent,
8.5 per cent by Indian people and 2.8 per cent by Government and business, together with
foreign nationals. transformation advocates such as the BMF also have
to come to the party, but imagine how much more
Black professionals effective these parties could be if black professionals
need to deliberately united in the workplace to support each other, lift as
rally behind each they rise and unashamedly revelled in black pride
other in their quest for and not assimilate into white culture and practices in
the workplace.
transformation.

E M P O W E R M E N T 11

GEINNDSOERUT(HDIAS)FPRAICRAIT:Y

ADDRESSING
THE HEART OF
THE MATTER
Gender balance remains an issue in South Africa, writes Tasneem Fredericks, BMF deputy president

Gender disparity remains an issue in South employees earning 39 per cent less than their it is because they are more courageous, braver
Africa and the world at large, regardless male counterparts. In addition, the gender pay gap than women are; and bravery and courage are, of
of the fact that countless numbers of in South Africa has doubled since January 2017, course, traits they are taught from a young age,” said
women in the workplace embody skills and according to the same report, showing a regression Masechaba Ndlovu at the 7 Percent Gala Event
business know-how, which makes them as opposed to a progression for women. in 2018.
powerhouses in their respective industries.
In a global survey by New Scientist, conducted To reverse this social conditioning, women
The gender pay gap, simply put, refers to the with 4 300 working scientists, engineers and must be empowered to have a voice and be more
difference between the average wages of men and academics, 49 per cent of them women, it was found confident from a young age. Part of achieving
women regardless of their seniority. that the pay gap begins from the moment women this lies in including men, young and old, in
enter the workplace. From ages 25–34, women earn conversations about women empowerment and
ALARMING STATISTICS ON PAY GAPS 2.5 per cent less, but by the time the same women advancement as well. Men have an important role to
are 55, that gap’s widened to a staggering 35 per cent. play in speaking out against practices that promote
The Global Wage report for 2018/19 shows the economic, political and social exclusion of
shocking and rather disturbing facts related to It then begs the question as to why this is women and girls. They too should play an active and
how the gender pay gap widens both locally and the case. There are many reasons for gender more participatory role in fighting for gender parity.
internationally. Sadly, South Africa leads on disparity, but the primary one is unquestionably
several scores with women on average earning gender prejudice entrenched in the minds of both We need gender pay ratios disclosed by both
28 per cent less than their male counterparts. In men and women from childhood, due to social private and public sectors with the specific
terms of protecting the most vulnerable of women, conditioning and the normalisation of patriarchal purpose of not only improving gender parity on
South Africa has the “second worst” part-time norms. “Why men are in more executive positions is boards, but also for much-needed and satisfactory
wage gap in the world with female part-time not because they are more intelligent than women, representation of black female professionals.

12 E M P O W E R M E N T

BMF DEPUTY PRESIDENT’S NOTE

We need gender pay ratios disclosed by both private • To celebrate women’s achievements.
and public sectors with the specific purpose of not • To regularly publish research papers on women
only improving gender parity on boards, but also for
much-needed and satisfactory representation of black and youth empowerment and upliftment.
female professionals. • To foster knowledge-sharing (for example, news,

Gender equity reforms in the public and private • Youth empowerment and development into the statistics, information) in internal newsletters
sector, as mentioned by President Cyril Ramaphosa, fourth industrial revolution. and other publications, through interaction
need to have an intersectional approach and with special women’s forums where BMF
deliberate intervention that acknowledges the triple The BMF has identified that an effective and women can share best practices, workshops and
oppression faced by black women in the form of dedicated Women’s Desk and Forum is imperative interactive dialogues.
race, gender and wage gap inequality. not only for female professionals that have • To create and nurture strategic partnerships
subscribed to our organisation, but also for on women empowerment (knowledge and
Unlike other countries, South Africa does not females and youth in the wider society. It is our event collaboration terms) with like-minded
make it a requirement of any law to report on the responsibility to ensure that we participate in organisations.
gender pay gap and perhaps herein lies the start outreach programmes that raise awareness and • To educate both sexes around what exactly
of fixing the end. We will then move away from funding for children’s health and basic education. constitutes sexism.
the position where various reports are released Objectives of the Women’s Desk and Forum: Economic exclusion, financial systems that
annually on information relating to the gender pay • To create a culture where both male and female perpetuate their discrimination, limited
gap that we already know exists. participation in political and public life, lack of
members find an equally conducive access to education and poor retention of girls in
Legislation around mandatory quotas to increase environment for their leadership development schools, gender-based violence, harmful cultural
the participation of women on boards with and networking. practices, and exclusion of women from peace tables,
sanctions imposed on non-compliant companies, like • To provide dedicated support are the major standing barriers to achieving gender
Norway, France, Italy and Belgium have done, can for female leaders at the equality in Africa.
see a real and measurable turnaround strategy for governance level within the Women empowerment is critical in our current
the advancement of women in South Africa. BMF structures to ensure socioeconomic context, and as the late UN
they conduct their duties in
BMF INITIATES WOMEN’S DESK AND FORUM an effective manner. Secretary-General Kofi Anan said, “there is
• To support young female no tool for development more effective
The BMF has a critical role to play in this global BMF members in than the empowerment of women
agenda of gender pay disparity and gender their own leadership and youth”, and it is crucial that the
equality in general, and it has deliberately crafted development with BMF’s Women Desk and Forum
as its strategy for 2019–2021 a Women’s Desk and concrete leadership plays its part in this process.
Forum to specifically dedicate time and resources to training, mentoring
IMAGE: SUPPLIED address this. and support.

Given its experiences of dealing with structural Tasneem
inequalities based on race, the BMF felt that it would Fredericks
be in a good position to address the intersection of
race and gender and to tackle this issue in a practical
way with practical responses and programmes.

The establishment of the Women’s Desk and
Forum is the identified action to respond to
challenges faced by women in society. Key
issues that the Women’s Desk and Forum tackle are:
• The lack of representation of black women in

management positions in both public and
private sectors.
• Lack of mentorship, training and professional
development for black women in the
corporate sector.
• Sexism and sexual harassment in the
workplace as a measure for promotion.
• Wage gap inequality.
• Education and health of girls, in particular the
broader STEM skills gap.

E M P O W E R M E N T 13



BMF: ETHOS AND HISTORY

AANWDATGCHODOOGDFOGR OTRVANESRFONRMAANTIOCNE
For the past 43 years, since its first meeting
at the Carlton Hotel in Johannesburg in e Black Management Forum, Nolitha
1976, the Black Management Forum (BMF) now in its 43rd year of existence, Fakude
has been at the forefront of developing boasts a rich history and, despite
managerial leadership and advancing many challenges and changes, must be an agent for change that will help develop
socioeconomic transformation in SA. In November remains true to its values, a non-racial and equal society that brings an end to
2018, the BMF elected 35-year old Andile Nomlala writes Duma Gqubule poverty. The BMF will stand for good governance
as its president for the next three years. and value-based leadership. Our social fabric has
A LEADING ROLE IN DEVELOPING EMPLOYMENT been compromised by state capture and corruption.
An entrepreneur who has also worked in the EQUITY POLICY This cancer has affected many of our institutions
corporate sector, Nomlala met eight out of ten of including churches, political parties, trade unions
the BMF’s past leaders who are still alive to learn In 1987, the BMF defied the apartheid government and businesses. Ordinary people do not believe
about the organisation’s values and ethos while he and participated in a business delegation that went that we were once a proud nation led by people like
ran for president. to Lusaka in Zambia to speak to the then banned Nelson Mandela. We have to restore the confidence
ANC in exile. In 1993, with Wiseman Nkuhlu as of the citizens about the quality of leadership in
They told him about the BMF’s rich history and president, the organisation released its landmark society. Leadership is not just about having a title. It
how it did not stray from its values and mission. affirmative action blueprint, also known as the is about moving society from one state to another. ›
After it made a transition from a loose association to Basotho Hat formula. It called for private sector
a legal entity with a constitution and Eric Mafuna companies to achieve a critical mass of black people Mncane
as president in 1980, the BMF continued to pursue in management levels. During the post-apartheid Mthunzi
its vision during the most difficult period in SA period, then president Lot Ndlovu deployed young
history as the country went through a political and BMF leaders to the Department of Labour, where
economic crisis that culminated in the democratic they helped to develop the country’s employment
breakthrough of 1994. equity policies and laws.

Under the leadership of Don Ncube, George In 1997, at its national conference, the BMF
Negota and Don Mkwanazi, the BMF grappled with passed a resolution that called for the establishment
the relationship between broader socioeconomic of a BEE Commission. It was established in May
and political issues and the plight of black managers 1998 under the auspices of the Black Business
during the 1980s. Council with Cyril Ramaphosa as chairman. The
Commission’s report was presented to former
Don president Thabo Mbeki in 2001. It paved the way for
Ncube the country’s current BEE policies and laws.

Don The BMF, led by presidents Bheki Sibiya, Nolitha
Ncube Fakude and Mzwanele Manyi, played a role in the
development of the BEE Codes of 2007 and 2013.

Since then, presidents Bonang Mohale and
Mncane Mthunzi steered the organisation during
a difficult period of state capture and rising levels
of corruption.

AN AGENT FOR CHANGE

Nomlala says the BMF is a platform for contributing
towards the development of the country. “We must
be dedicated to a cause and not material benefits. We

E M P O W E R M E N T 15

BMF: ETHOS AND HISTORY

“BEE has been hijacked by political elites. “We have to restore the
Radical economic transformation became mired confidence of the citizens
in corruption. It was for certain individuals to line

their pockets. It lost its reputation and became a about the quality of
get-rich-quick scheme. Even black people have a leadership in society.
condescending attitude towards transformation,” Leadership is not just about
says Nomlala. “When we develop a 30 per cent
target for transformation, people don’t own

the policy. They believe that the shares have having a title. It is about
already been targeted for certain people. BEE and moving society from one state
transformation should be seen as tools to develop an to another.” — Andile Nomlala
equal society.

“There must be a supreme law for transformation.

It should not be optional. We have to institutionalise

transformation. It must be taught in schools and Andile entrepreneurs to first have a professional training
universities. We have to explain it and give it Nomlala before branching out on their own.
meaning it again.
“Entrepreneurs who are born out of trading do
“We must re-position it as a business imperative not corporatise their businesses. If you do not have
— a tool for achieving diversity, innovation and corporate experience, you do not learn how to
sustainability and not just a tick-box exercise.”
corporatise your business. A tenderpreneur

NEW PRESIDENT, NEW CHAPTER phUcI3oidbcubpIdocgDdBttnoohaft0urreeiepeMneodwhmmoasvvTNTcamwfnpbpigicperapFeevavhhagoppoaeeotheremlltne’seiessimslcooranmeirciaserird.ntacppneprttNcetsrtsNhplhbmytmeeersiiae4iirlaortCee,fneoaendCdealNyoneipnseYarlvrScnestSCl.paansrdgoopoo.sdietstHghienBeaTtmmdpfaruhvtsair,ilripteaecitlehoConl,eapniospalesikentdwcsutcae.taagisbhrdpeeeetoeodHdTlppleaefghlranx,apnheueoicivpessorecesinretonqhhstw,sicaerohdsxTcmigelstuhotandaGtnnouueoprinr.dptisiutvavuidNecwafttarts.haenaiinyatweoueepnIvnaaolrnntnartdltedtatebenmaaoetBttthryB2nehsounrdhnuMdsMrled0gudociorcaeeirgsep1onakeBnseltiF.masns5liawld.aAonwttiY,itstneumlhoep.iaoamodsreytuasnsohibsebnviSaenesiegclitrWcnahsmPisatstchorameteacooihgsprnilfeteen,ieeatuwtwsirgthcnsneehaihetromeilPCemlnrfrneaRioeaetsnparlhssetmie.daepnht oCaoitIathiytnmerstfyeacaswaaHaacsrpotniogrsmliascleseslteuonalfa.msponv2seTraarerts0eetyhemmrstrn.th”saeiefhetbabyetoisepghtilnrtthiiisnrehiowsrstuooahirneBbwvucvgiailuahMersresanleetbsnlgppbasmauiFisueftndlrrusosdtoistooowiebghsNyavirrpgaCisnpatmsneie“ofrsotatIolsuleeWuhaenelraihBsspiewfarsnosnswmfsnuaroadtpstoaahnotsegseloituacduvlnorw.oamiceidfrcfbspnfneMrsecynukoaktheucitaupeiednge,rflsa.esrioofntfarC.lttrenIesdisiyiotonseueItnnadrorhth.twgetrnorntswflswlynTohewqiedtrauteesDoltohphaaueceio(ttxwenunrifIlorcehauntenrallDskpargaosuRltvtkotdetatsoni,etctCcaetorprwensyahylbhrrtlodbkesj,nl)eniegiguiiuiooonesvpiclweepnoCdaldisotptssfarndedlsfpgnuhtoehbthcmetlohMducaltahrbceiienmiseewrehemascbntaetfeem1reetav.tlieelotnohta0eanrTeuiticeaphrusd.btctioonttahrlteohesehoelonlhostpsaneneettlpaetisto.1haddtaney5aneertlyrdt.

Nomlala brings to his new job a unique personal
history to an organisation that has traditionally
been led by older people who had spent their lives
working in large companies. Born in Umtata in
the Eastern Cape, he went to the University of the
Western Cape, where he studied accounting and
finance. He immersed himself in student politics as
an activist for the South African National Students
Congress and the ANC Youth League. He left in
2005 and worked for an accounting company in
Cape Town where he did his articles.

He soon realised that accountancy was not his
calling. He then worked for a few black-owned
entrepreneurial companies before he started
his own venture, NCS Consulting, a marketing
consultancy, in 2010.

He had a big break in 2012 when he became
a trade partner for a large telecommunications
company. He set up a distribution network for the
company and entered into joint ventures to bid for
public sector contracts.

During this period, he brokered a sponsorship
deal between the company and Chippa United
football club.

“We want to be a sounding board for the state

In 1997, at its national conference, the BMF and business. We will provide solutions and not
passed a resolution that called for the establishment just endlessly diagnose problems. We will also
of a BEE Commission. It was established in May 1998 under continue to be a watchdog for good governance
and transformation. We will ensure that the
government and the private sector are accountable.

the auspices of the Black Business Council with Cyril I don’t believe that many people in the private sector IMAGES: SUPPLIED
Ramaphosa as chairman. have the same interests as the rest of society when it
comes to the objectives of creating an equal society,”
concludes Nomlala.

16 E M P O W E R M E N T





BMF: GOVERNANCE

TWHEEREGWOATSIATTRIMIGEHT!

Governance is supposed to be the glue that holds an institution minister of public enterprises, told him that she
together. Duma Gqubule shares what happens when there is
disequilibrium in this system had the perfect candidate — Max Sisulu, a member

of the ANC royalty, who was also an economist. “I

told her that there was a process. If she imposed

I n 1997, the government had a critical decision Sisulu on Eskom, we would not be following the
to make. It had to appoint a new chairman of
Eskom to replace John Maree who had retired the hat were the late Eric Molobi, the founder process. She never came back to me,” Khoza
after leading the company for 12 years. Former of Kagiso Trust, Vusi Khanyile, the
President Nelson Mandela had a soft spot for founder of Thebe Investments, and relates. In 2000, Thulani Gcabashe
Cyril Ramaphosa. But Thabo Mbeki, the deputy Reuel Khoza, a businessman
president, said the government should develop and strategy consultant who became Eskom’s first black chief
criteria to assess the candidates. Other names in had advised Eskom and SAA.
Molobi and Khanyile exited executive. It’s hard to believe
the race.
now, but there was a time
“Cyril loomed large and I
loomed small,” says Khoza. when our politicians got the
“To be fair, they developed
14 criteria to evaluate thetwo basics right. Nolitha Fakude,
of us. It was a rigorous selection
process and I won on nine of the a former BMF president and
criteria. It was a rigorous selection
process. What helped me was the fact that Sasol executive director,
I had been a consultant to Eskom for 10 years.
who is on the boards of
“It was a unique assignment because I had
been a permanent member of a structure Max Anglo American, the JSE,
that included the company’s top 30 executives.” Sisulu Afrox and Discovery Bank,

says Khoza and Gcabashe

were a sound chairman and

CEO combination. Eskom won the

Financial Times global power company of the

year award in 2001. The award was presented in

recognition of Eskom’s success in “providing the

world’s lowest-cost electricity while at the same

time making superior technological innovations,

ESKOM’S THEN FORMIDABLE DUO increasing transmission system reliability and

Khoza became the first black chairman of developing economical, efficient and safe methods
Eskom. A few years later, he invited senior
for combustion of low-grade coal”.
business leaders to advise him on a succession
plan to replace chief executive Allan Morgan. Eskom expanded its operations to the rest
They included lawyers Mervyn King and
of Africa. “We had a presence in 33 African
Michael Katz. But Stella Sigcau, the former
Reuel countries,” Fakude says.
Khoza
By the time Khoza left Eskom in 2005, the

company was virtually debt-free. It is hard to ›

E M P O W E R M E N T 19

BMF: GOVERNANCE

believe now, but there was a time when Eskom was “We had a very professional set-up. The buck stopped
reasonably well run. with the chairman, CEO and CFO. However, the government’s
biggest mistake was a decision to ignore the Eskom board’s
POOR LEADERS, A LACK OF UNITY AND
WEAK SYSTEMS advice to invest in new generation capacity during the
late 1990s. ” — Reuel Khoza
Khoza, an author of books on leadership and
governance within state-owned companies, says to invest in new generation on roadshows to investors. In state-
a successful leader must have competence, a owned companies, the chairperson
sound sense of values and probity. He says a good capacity during the late interfaces with the shareholder.
Eskom board should have a diversity of skills and “In the current crisis situations,
competencies in areas such as engineering, finance 1990s. They told the it is understandable that ministers
and treasury, mining, banking, manufacturing, need regular reports. But this
agriculture, and international business. government that it should not be the norm,” she says.
When Khoza was Eskom
“The current board has only one qualified takes about seven chairman, he chaired all press
electrical engineer. The board also needs people conferences. “Ministers should not
who have expertise in the specialised area of years to build a run state-owned companies. They
corporate turnaround strategies. Such people know
how to do diagnostics on struggling companies.” power station and that must supervise them. At Eskom today,
the chairman seems to be an appendage.
But the wheels started coming off in state-owned SA would experience The CEO says nothing.”
companies when “SAA appointed a charlatan Governance is supposed to be the glue that holds
from the United States and rewarded him with problems by 2006 an institution together. Boards have three roles
R232-million to get him to go, despite the fact that that relate to governance framework, performance
he had messed up the organisation,” Khoza says, if there was no Nolitha and strategy. There must be unity of purpose on a
referring to the 1998 appointment of Coleman new investment.” Fakude board, which must be empowered to act swiftly to
Andrews who left after 18 months with one of the changing market conditions. Governance failures
biggest payouts in SA corporate history. This illustrated a unique can arise when there is disequilibrium in this
system. Sometimes, there are rogue CEOs who are
Later, former president Jacob Zuma “appointed governance conundrum within given too much power by their boards, for example,
a friend and trusted her with a multibillion-rand at Steinhoff.
organisation, despite the fact that she had never state-owned companies where boards In other cases, there are board members who
sold a bag of potatoes. A fish rots from the head. benefit from related party transactions because of
The rot became so pervasive it cascaded and have to report to multiple government ministries, weak systems of disclosing and managing conflicts
permeated everything. My former drivers told me of interest. There are also human factors that can
stories about brown bags that were delivered to with changing ministers who frequently work in result in conflicts between personalities on a board.
people at the very top,” comments Khoza.
silos and do not agree with each other. NEW GOVERNANCE MODEL NEEDED
After Khoza left, Eskom appointed a head of
procurement who only had a diploma. “In my time, Boards cannot make decisions on capital In state-owned companies, boards cannot act swiftly
procurement was a relatively junior function when there are blurred lines of responsibility and
within treasury. We had the best treasury structure or the funding of costly public and political contestations between ministries. There
department in the country with 43 chartered must be a new governance model that balances the
accountants who negotiated with original economic development mandates, which are need for institutional autonomy and accountability.
equipment manufacturers.
political shareholder responsibilities. Decision- The government also frequently fails to draw
“We had a very professional set-up. The buck a line between expected financial and broader
stopped with the chairman, CEO and CFO,” explains making is slow. economic development objectives. For example, at
Khoza. “However, the government’s biggest mistake the SABC, the government has failed to fund a costly
was a decision to ignore the Eskom board’s advice This seems to be the case with the current Eskom public broadcasting mandate.

“there has to be clarity board. There is a presidential sustainability task There could be a separation between the
within state-owned organisation’s commercial and public broadcasting
companies about the roles team and a ministerial task team on Eskom in operations with private investors allowed to
of the shareholder, the line participate in the former. But this is a political issue
ministers, the board and addition to three ministries — national treasury, that no board can resolve.
management.” — Nolitha Fakude
public enterprises and energy — that have

overlapping areas of responsibility.

“There is a stalemate. We need to get all the

stakeholders, from the presidency to the ministries,

and all the task teams under one roof to make key

decisions and own the company’s strategy,” an

insider says.

Fakude says there has to be clarity within

state-owned companies about the roles of the

shareholder, the line ministers, the board and

management. “In listed companies, we have

multiple shareholders who do not participate in

day-to-day operations. We do not get shareholders

calling us every week.

“Directors receive a mandate at the annual

general meeting. The share price suffers if the

market does not agree with a company’s strategy. IMAGES: SUPPLIED

The market also monitors the allocation of capital

by looking at earnings and the return on equity.

Also, it is the CEO (not the chairman) who goes

20 E M P O W E R M E N T







HAS GOVERNMENT’S COMMITMENT TO

EMPOWERMENT
WORKED?

Government terminology and policy has moved from Black Economic Empowerment
(BEE) to Broad-based Black Economic Empowerment (B-bBEE) over the years, but just

how broad is the base of bene ciaries? Jermaine Craig reports

South African workers protesting for jobs, skills development and a decent living wage.

24 E M P O W E R M E N T

GOVERNMENT’S COMMITMENT

S tatistics South Africa (Stats SA) has “Government’s black economic
announced that the country’s official empowerment approach is
unemployment rate for the first quarter of nonsensical.” — Dali Mpofu
2019, has gone up to 27.6 per cent and that
a staggering 55.2 per cent of the country’s place meant to drive B-bBEE. Empowerment is an
orderly process, the alternative for which is full,
youth are jobless, again calling into question brutal expropriation of big business into black hands,
which would be counter-productive. Empowerment
government’s ability to stem the jobs bloodbath as is aimed at dealing with the ownership and
management of the economy. Yes, it has admittedly
its citizens suffer. not benefitted as many people as it was intended to,
but most black people who are well-to-do today will
Stats SA further shares that an estimated 237 000 tell you they have achieved that without benefitting
from empowerment policies. What is encouraging,
people lost their jobs in the first quarter of 2019, however, is that big business and major corporates
are taking the B-bBEE codes very seriously now and
with the overall number of unemployed people in saying to companies ‘you will lose the opportunity
of doing business with us if you do not abide by the
the country now standing at over 6.2 million. codes’. That forces companies to up their game on
empowerment if they want to do business with ›
Advocate Dali Mpofu, national chairperson of the Dali
Mpofu Sandile Zungu
Economic Freedom Fighters (EFF), says government’s
becoming 100 per cent black-owned. He added that
empowerment policies have been a complete failure. another significant empowerment highlight was
government’s engagement with insurance giant
“Government’s black economic empowerment (BEE) Old Mutual to bring the company “back home” from
London and to use the Johannesburg Securities
approach is nonsensical. You can’t empower millions Exchange for its primary stock exchange listing,
while taking its BEE shareholding levels to best-in-
by giving a few a share,” says Mpofu. class industry standards.

“Real empowerment is based on workers getting a President of the Black Business Council (BBC)
Sandile Zungu acknowledges that while the efficacy
share in the profits of the companies they work for. of black economic empowerment “leaves much to be
desired”, it is nevertheless unjustly hauled out as a
Government’s empowerment policies have created
soft target for criticism whenever damning
a black elite that joins the white elite. Inequality is unemployment figures are released.
“In terms of the current situation
inequality, whether it’s black or white inequality,” regarding the ownership and
management of the economy, it
Mpofu adds. remains lily white. This state of
affairs is like a wart on the face
It’s this notion that saw government move its of our democracy and needs
to be corrected. Quite clearly,
approach from narrow-based empowerment, black people have political power.
Through sheer force of numbers,
seen to be benefitting only a few, to “broad-based” they can influence who their
government will be, but at an
empowerment. While there have been
economic level, they remain powerless,”
some successes, much still needs says Zungu, whose BBC is the overarching
body representing black professionals,
to be done as the alarming business associates and chambers in
lobbying government on policy matters to
unemployment statistics ensure greater black participation in the
mainstream economy.
indicate. While acknowledging
Zungu maintains, however, that the
that unemployment government’s strict broad-based black
economic empowerment (B-bBEE)
levels remain alarmingly policies are the correct approach
to transform the economy, but the
unacceptable, Minister of implementation needs to be more
genuinely and sincerely embraced
Economic Development by business. “The government has
a suite of empowerment policies in
Ebrahim Patel, in his last Ebrahim
budget speech in the former Patel

administration, said the output of

the South African economy was at

R4.7-trillion last year and that nearly 16.2

million people were employed.

Patel alluded to the fact that government was

doing everything in its power to stimulate greater

economic development and more inclusion of black

people in the mainstream economy. At the time, he

said that some of the practical steps government

was engaged with was to, for instance, get Coca-

Cola South Africa to buy more local grapes for its

Grapetiser brand of drinks and more local glass

bottles for its beverages, thereby creating jobs in

supplier industries.

Patel also pointed out that rival buyers merging to

buy the Caltex business from Chevron with greater

black representation was another success, as was

major construction company Murray & Roberts

E M P O W E R M E N T 25

GOVERNMENT’S COMMITMENT

government, or even if they want to do business entity when they are involved in major decision- “Women don’t only make their own homes
with each other,” Zungu told Empowerment in making and day-to-day operations. warm, they make their streets warm, they make
an interview. their communities warm. Some women do not see
EMPOWERMENT OF WOMEN A CORE FOCUS themselves as leaders, but they are. We want women
THE SPIRIT OF TRUE EMPOWERMENT to make our country feel like home, whether it’s
And how does empowerment relate to women, who at community level, or in politics and also in the
Zungu agrees with Minister of Trade and Industry will make up 45 per cent of South Africa’s economy,” says Khoza.
sixth parliament? A bold new voice that has entered
in the previous administration, Rob Davies, that
South Africa’s political fray is the Women
fronting is still a challenge to true Forward (WF) political party, which GREATER INVESTMENT IN THE TOWNSHIP
contested the national elections. ECONOMY REQUIRED
economic transformation and needs to “In terms of black economic
empowerment, our core focus
be “ruthlessly” eradicated. is true empowerment of
women, which resonates with
Davies said recently at the women who remain left out Zungu says bringing industries and opportunities
of the country’s economic pie,”
B-bBEE Commission’s annual says WF’s assistant national closer to home for the country’s majority was
co-ordinator Lindiwe Khoza.
conference that it is equally “We’ve seen these gravy trains absolutely critical in creating empowerment
mushrooming from afar, where the
important to “identify, support and employment. “I would like to see the new
B-bBEE system is still built to
and value those who are Rob benefit a few golden boys administration of the country investing a lot
doing the right thing” by Davies or companies.
implementing B-bBEE in the more resources in developing and promoting the
“But empowerment does
not benefit women or reach township economy.
down to the communities
spirit in which it is intended. where it is most needed. Most “Government has spent billions of rands in
companies still relegate black
“It’s true that some businesses businesses to minor services building RDP houses, but the same people who are
and to mere administrative
want to take shortcuts,” says Zungu, roles, while white males still the beneficiaries of those houses still have to walk to
dominate the boardrooms,”
adding “there are companies who do not adds Khoza. taxi ranks and train stations and travel over an

believe in true empowerment, but who want to tick She called for greater representation hour to get to work.
of women in senior leadership positions in
a box. True empowerment is promoting deserving business, saying “often we find women are the only “Everyone wants to live in Sandton,
black woman on a major board, but still truly do not
black men and women to the upper echelons of feel they belong or add value. Umhlanga or the V&A Waterfront

leadership and ownership of companies. What’s “As women, we too need to organise ourselves because there are jobs and
and have real conversations about what the lived
lacking in business is the spirit of Mandela, which is experiences and challenges of women in business are. industries there, but no one wants
The leadership of women is consistently undermined
being thrown away at the altar of expediency, with in the companies they represent,” says Khoza. to live in Kwa-Mashu. The equity

companies taking shortcuts to get to level one of the “Our message is that if we put more women in in black hands does not rise in
leadership positions, they have the right heart to
B-bBEE scorecard, without really believing in the transform the lives of poor people. Even when there’s value because there’s no basis for
no money in the home, women put food on the table. it to rise,” says Zungu.
spirit and letter of the law and ensuring They somehow make a plan. Lindiwe
Khoza “Government must take this
true empowerment”.

Davies said the more black people are able to issue more seriously, the township

exercise true business ownership powers, the more economy is not a ‘social experiment’,

economic transformation will take hold in South it is an absolutely critical way to empower

Africa. He said at the conference that the value of the those entities that are supposed to expand, advance

B-bBEE transactions reported in 2017 and 2018 was capital and create the kind of empowerment and jobs

around R115-billion, but that much more could still government is looking to create.

be done. “If you want to empower people, bring large-scale,

“In South Africa, too much black ownership is not world-class infrastructure close to where they live.

real economic ownership; too often it is only legal The bulk services, water and electricity, are already

ownership,” said Davies. there, add large-scale industries and opportunities

The governnment was aggressively cracking and give our young people big data in their

down on fronting, which has been made a criminal communities and we can empower our people on a

offence through the B-bBEE Amendment Act of 2013, sustainable long-term basis.

but which was becoming more sophisticated and The President must also appoint ministers who IMAGES: SUPPLIED

complex as entities such as the B-bBEE Commission know how to create economic value and lead

crack down on it. In echoing Zungu, Davies said black ministries in a business-like fashion. We have to hit

people only experience real ownership of a business the ground running,” he says.

“In terms of black economic empowerment, our core focus is true empowerment
of women, which resonates with women who remain left out of the country’s

economic pie.” — Lindiwe Khoza

26 E M P O W E R M E N T

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LAND

RTAHGE DEESBAOTEN An aerial view of
wealthy Gauteng
suburb, Sandton, and
one of the poorest
townships next door
to it, Alexandra.

Of all the issues that swayed voters during South Africa’s 2019 general elections, none
was as polarising as the issue of land, writes Jermaine Craig

L and is every bit the hot button issue it was the national vote. He says it was also a hug factor white people is something they can’t stomach,”
billed as before the election, and the final in galvanising the Afrikaans community to rally Mpofu says.
election results show that it was central behind the Freedom Front Plus (FF Plus) and
to the eventual outcome and remains a ensure the party’s 414 864 votes (2.38 per cent He adds that while the FF Plus’ “Slaan Terug”
pressing issue. of the national vote) and six more seats in the campaign saw it consolidate its conservative support
“Our Land And Jobs Now!” was one of the National Assembly. base, it was also a major beneficiary of white
Economic Freedom Fighters’ (EFF) most powerful support deserting the Democratic Alliance (DA)
election slogans. The EFF’s election manifesto says RIGHT-WING SHIFT en masse. “The right-wing nationalist elements of
“landlessness and joblessness among black South the DA could not stomach the possibility of land
Africans are at crisis levels, posing the biggest “The most decisive moment came at the African reform and of a black party leader. The fear around
challenges that confront South African society National Congress’ (ANC) Conference in Nasrec the land issue was what shifted people from the DA
today”. It further states that “80 per cent of the when they supported the EFF’s position on the to the FF Plus,” Mpofu says.
population continues to occupy less than 10 per cent expropriation of land without compensation, and
of the country’s land”. when the ANC supported us in parliament by He adds that the EFF’s strong election showing
agreeing that Section 25 of the Constitution be was a “huge” boost to the party and showed that its
According to the EFF, of the 122 million hectares amended to make expropriation of land without prioritisation of the land issue was well founded.
of available land in the country, 67 per cent is white- compensation more explicit. That’s when the right-
owned agricultural land, 14 per cent is state-owned wing shift happened. While the ANC’s support for the amendment of
and 5 per cent Indian-owned. That leaves less Section 25 of the Constitution was seen as a clear
than 14 per cent of the country’s land for black “The FF Plus phenomenon is actually also a good attempt to stem some of the populist red tide of the
Africans and coloureds, who make up 88 per cent of thing. It shows the reality of their apartheid-state EFF, the ANC tiptoed around the land issue during
the population. nostalgia and that black people being equal to its election campaign. President Cyril Ramaphosa
almost single-handedly dragged the ANC over the ›
The EFF advocates that available land should be
placed under the custodianship of the state, which According to the EFF, of the 122 million hectares of
would administer and redistribute it equitably to all available land in the country, 67 per cent is white-owned
South Africans for residential and productive use. agricultural land, 14 per cent is state-owned and
5 per cent Indian-owned.
EFF national chairperson, Advocate Dali Mpofu,
says the issue of land was “key” to the party getting
over 1.8 million votes and nearly 10.8 per cent of

E M P O W E R M E N T 29

LAND

President Cyril
Ramaphosa

“The right-wing nationalist injustices of the country, it was not one of our five parliament is now made up of parties in favour of the
elements of the DA could expropriation of land without compensation. What
not stomach the possibility core campaign issues and we did not feel it was a will happen now after the election is what we are
of land reform and of a
black party leader. The fear make or break issue for voters”. . concerned about,” says Roets.
around the land issue was
what shifted people from No party was more militantly WHAT DOES THE FUTURE HOLD?

the DA to the FF Plus.” focused on land than Black First Just how aggressively or sensitively
the new ANC government
— dali mpofu Land First (BLF), whose slogan deals with the issue of the
expropriation of land without
line, out of the quagmire of a campaign mired in state “Land or Death” was deemed compensation and how this will
capture and corruption allegations, although it dipped work is now the big question.
below 60 per cent nationally for the first time in six as hate speech prior to the For the moment, Ramaphosa
general elections. remains diplomatic.
election and whose fiery “We have great minds in our
Ramaphosa was every bit the diplomat with his
“presidential” take on the land issue just ahead of rhetoric didn’t resonate nation that are going to be put to
the election. work to make sure we find solutions.
with voters. Solly Much as we live in a country where there is
“The one thing that I’ve always said, that will never Ernst Roets, spokesperson for Malatsi private ownership, we also have a hybrid type of
be allowed is to have land grabs. We are going to system. There is private ownership and communal
solve this problem by working together and finding minority rights group Afriforum, ownership. The land being claimed is for communal
solutions that are fit for South Africa. As South ownership and the Constitution recognises that,”
Africans, we have been able to find solutions for says it was “very interesting” Ramaphosa said recently.
the most difficult and almost intractable problems,” “A constitutional process is now underway. We
Ramaphosa said in Pretoria in the week before that the ANC did not campaign at are law-abiding, and the rule of law must apply. This
the election. matter is going to be handled with the seriousness,
all around the land issue ahead of the and the delicacy it requires, “ he added.
FF Plus chairperson Anton Alberts made no bones EFF leader Julius Malema is far less diplomatic
of the fact that the party’s increased support was elections. “They know that it (land) is not as big a than Ramaphosa in calling for the land issue to be
directly due to its stance on land reform. decisively and quickly addressed, or for the country
deal for their supporters as it’s made out to be and to face the consequences. “Let black people own
The DA’s message of “One South Africa For All” the land too, and we will see how much crime and
clearly wasn’t particularly palatable for many of its that issues such as unemployment, education and service delivery protests will reduce,” Malema told
conservative supporters, and the FF Plus was only Turkish television station TRT World just before the
too happy to provide an alternative hardline home. rooting out corruption are far more important. We election.
“Employment is not in the hands of white people,
DA national spokesperson Solly Malatsi says: “We are concerned, however, that over 70 per cent of it’s in the land. This inequality, which is growing and
definitely lost votes to the FF Plus and we need to widening by the day, and which is racially based
understand why some of our supporters jumped ship. Ernst as blacks become poorer and whites richer, is not IMAGES: SUPPLIED
While the land issue is important given the historical Roets sustainable, and it will lead to loss of life.
“We are serious about the issue of land and we are
saying to government please put the systems in place
and expedite it, otherwise it will become ugly and we

30 E M P O W E R M E N T





QUALITY PRODUCER
OF THE NOBLE FIBRE

S outh African Mohair Industries Limited (SAMIL) was formed in 1992. is that SAMIL is able to o er lots guaranteed from origin – a rare luxury in
Primarily a mohair trader and processor, SAMIL’s ambitions have reached today’s business environment.
far beyond this activity, and it now sees itself as the link between Spinning & Dyeing: Although we specialise in pure mohair, we also blend
mohair producers, processors and consumers. SAMIL’s vision is to be mohair with a range of other natural and man-made bres. Yarns can be custom
an innovative South African company specialising in the production and dyed to any shade at Samil’s state of the art dyehouse.
processing of natural bres, as well as speciality spun yarns. Genetic research: ANGELA - Angora Genetics Laboratory was established
in 2013.  
• SAMIL spinning is a global manufacturer of outstanding quality ANGELA has as its objective the improvement of hair yield for the Mohair
mohair yarns, producing a wide and exclusive range of mohair and Industry. This is achieved by using controlled breeding techniques to improve
mohair-blended fancy and ne-spun yarns in both ne-count and aspects as diverse as, increased kidding rates, micronaire value of the hair
coarser varieties. grown, total usable hair per goat. All aspects combine to achieve the ultimate
aim of increased hair yield per goat and ock. The project makes its results freely
• SAMIL is internationally renowned for its superior product range and available to all in the Mohair Farming Community.
caters for the hand-knitting, machine-knitting, weaving, hosiery and
decor markets. Our hand knitting brand African Expressions was born out of the desire to
share Africa’s natural beauty with the rest of the world. Through our unique
DIVISIONS range of yarns, we express the essence of that which makes Africa magical.
Using our noble bres to create yarns which are naturally soft to the touch, easy
Farming: Samil Farming was established in 2011, with the primary objective to knit and luxuriously versatile.
of stabilising and possibly increasing mohair supply to the processors, and,
secondly to show Samil’s commitment to the Mohair Industry. OUR AIM
Combing: In 1987, SAMIL established its own combing plant, Border Combing
Company, in Berlin, outside East London in the Eastern Cape, now known as • Through its involvement in all aspects of
SAMIL Natural Fibres Combing. As mohair processing has decreased in other the industry, SAMIL’s aim is to provide a
areas of the world, SAMIL Combing, as it is now known, has become one of the sustainable, a ordable, superior quality
world’s leading processors of mohair. Unlike many processing plants around the product to the world, showcasing not only
world SAMIL Combing is committed to processing only mohair. the product, but also the industry, country
Trading: From being primarily a greasy mohair trader, SAMIL has, through a of origin and individuals participating in the
strong support base of a liated companies, partners and agents, established production of the bre.
strong connections throughout the world for the purchase and sale of raw
materials and nished goods. Although mohair is produced in various parts of • With a dynamic and innovative team that
the world, South Africa processes in excess of 80 per cent of the world’s mohair embraces change and progress, SAMIL
production. The advantage of having both top-making and spinning operations anticipates a strong and bright future.
in South Africa, as well as access to raw material produced within the company,

Contact details:

+27 (041) 486 2430
[email protected]
www.samil.co.za

ADVERTORIAL

Masisizane Fund Zizipho Nyanga
Chief Executive Officer
supports SMME
development

Old Mutual’s Masisizane Fund is aimed at developing and
empowering SMMEs to run successful businesses and
generate economic opportunities for their communities

T he Masisizane Fund is an Old Mutual “The long-term goal is for Masisizane Fund walked the entire journey with
initiative established in 2007 following Masisizane to evolve into the entrepreneurs, achieving financial growth and
the closure of the Unclaimed Share a fund that offers end-to- diversification into new markets.
Schemes Trust. end services and plays a
As a non-profit funding entity, the significant role in economic The fund also prides itself on giving access
Masisizane Fund provides enterprise development to funding for entrepreneurs in the franchise
to small, medium and micro enterprises (SMMEs), growth.” – Zizipho Nyanga sector; this usually requires significant amounts
through its financing and business support channels. of unencumbered cash. Franchises such as fuel
Once an enterprise is given the green light, stations, food retail stores and restaurants perform
Throughout its 12 years of operation, the fund has particularly well. With proven methods and
focused on supporting SMMEs in rural areas, smaller Masisizane Fund goes into full gear working with systems provided by the franchisors and a number
towns and townships within South Africa, with of opportunities available, the fund is biased towards
the purpose of uplifting economies in regions that the entrepreneur to mitigate the business gaps women and youth and encourages these categories of
have been left behind. By occupying this space, the people to tap into these sectors for funding.
fund strives to give business owners and members that would have been identified as part of the
of communities the opportunity to establish Keeping in mind the increasingly competitive
sustainable businesses and generate opportunities application process. global terrain in which South African SMMEs
for the development of their communities. operate, as well as the opportunities being opened
Partnership and collaboration are essential to by technological advancements, having a forward-
Zizipho Nyanga, CEO of Old Mutual Masisizane thinking mindset is vital. Nyanga indicates that
Fund, says that corporates have a duty to contribute the long-term achievement of a healthy SMME assisting SMMEs to tap into the prospects that
to the development of South Africa’s SMMEs technology and innovation could offer is exciting.
for the purpose of creating jobs, stimulating the sector in South Africa. Nyanga acknowledges that This is especially pertinent for recent entrants
economy, establishing businesses and generating who require the support to develop the agility
wealth. She explains: “Where some institutions may the challenges faced by the country are too huge and dexterity required to navigate an unknown
provide funding without any further support, we future. Therefore, the areas of fintech, agritech,
are committed to driving broader change through to be overcome by one stakeholder and that is why manufacturing and energy are areas with attractive
our work. This means offering development growth prospects.
support to and close collaboration with the Masisizane values strong relationships with like-
entrepreneurs we invest in to ensure their CONTACT DETAILS
sustainability and growth.” minded allies. IMAGES: SUPPLIED
GAUTENG
The rate of early-stage SMME failure is One of its high-impact partnerships is that with Head Office: No. 1 Mutual Place,
high, with an estimated 50 per cent of all 107 Rivonia Road, Sandton
start-up businesses in South Africa failing SAICA Enterprise Development. Through this Telephone +27 (0) 11 217 1000
within 24 months. Prior to receiving Email: [email protected]
financial backing, it is important for collaboration, highly trained accountants are www.oldmutual.co.za/masisizane
entrepreneurs to get other support such as
strengthening the business plan, access given placements in businesses, thereby
to markets and other operational
aspects of the business to enable infusing rigorous financial management
the entrepreneur to access
funding successfully. systems into businesses. This results in

healthier enterprises that can thrive

and qualify for bigger opportunities

down the line. The fund is committed to

creating a pipeline of financially-secure

entrepreneurs who are able to operate

sustainably for generations.

One of the fund’s flagship

projects is a business that

received funding to

Portia Zilwa manufacture hospital
Head of Investments linen in Gauteng,

34 E M P O W E R M E N T





ADVERTORIAL

EMPOWERMENT AT

WOOLWORTHS IS A BUSINESS IMPERATIVE

Woolworths is committed to socio-economic transformation and human capital development

T he preamble to our constitution states: • Human capital transformation: in our ESD programme, with an accumulated
“South Africa belongs to all who live in it” Woolworths is steadfast in the belief that procurement spend of R800m.
and commits us to work together to “heal skills development is a key enabler to • Social development: Contributing to
the divisions of the past and establish a empowerment and transformation. Within social development and South African
society based on democratic values, social this context, our strategic intent is to national priorities through relevant social
values and fundamental human rights”. contribute to economic growth through development initiatives. We extend our
building skills not only for the company, but brand capabilities and traits to meaningfully
Aligned to and building on the above, the also for the sector and for the country. Our and sustainably contribute to addressing
Department of Trade and Industry (dti) says: approach to skills development is, therefore, some of the socio-economic challenges facing
“Our country requires an economy that can meet integrated across the talent “value chain”. South Africa.
the needs of all our economic citizens — our people
and their enterprises — in a sustainable manner. Overall, this empowerment journey is underpinned
This will only be possible if our economy builds on by our company purpose and values, which anchor
the full potential of all persons and communities us in doing the right thing for the right reasons, and
across the length and breadth of this country.” which, coupled with solid transformation principles,
To enable this, the dti implemented the B-bBEE ensure the sustainability and impact of our efforts.
codes, which provide an integrated and pragmatic – Zinzi Mgolodela: Director Corporate Affairs
growth strategy that aims to realise South Africa’s
full economic potential. • We offer opportunities throughout this Overall, this empowerment journey is
talent “value chain” — from bursaries for underpinned by our company purpose and
In line with our Good Business Journey students and co-op student placements values, which anchor us in doing the right thing
intent, Woolworths remains passionate to our participation in the YES Programme for the right reasons, and which, coupled with
about and committed to its role in the socio- and workplace experience programmes solid transformation principles, ensure the
economic transformation of our country. To us, for Sector Education and Training Authority sustainability and impact of our efforts.
transformation has become a business imperative (SETA) unemployed graduates and through www.woolworths.co.za/goodbusinessjourney
and we believe that our socio-economic licence to job placement. In so doing, we create
IMAGES: SUPPLIED to operate in this country would not be complete career progression within the business,
without a deliberate, holistic and sustainable improve the diversity of our workforce
transformation perspective. and our potential talent pool,as well as
contribute to the development of employable
Our commitment includes a commitment skills in the country.
to the transformation of our business, our
people and our supplier base, in a way that we • Supply chain transformation: “Contribute
can deliver on sustainably over many years. to inclusive economic growth by creating
Woolworths articulated its transformation intent opportunities for small, medium black and
into four strategies: black-women owned businesses.
• D irect empowerment: Broad-based
• We currently have 49 suppliers participating
beneficiation by increasing black and black
women equity ownership.
• T he closing of our BEEESOS (BEEEmployee
Share Option Scheme) brought about significant
economic empowerment for almost 8 000 of
our loyal Woolworths employees, most of whom
are black. The scheme itself created almost
R3-billion of wealth for beneficiaries.

E M P O W E R M E N T 37

SUCCESS STORIES

Tankiso Mosie T ankiso Mosie, managing director of Red
Ribbon Papers, a tissue and hygiene
HOW HAVE manufacturing business, started his
business in 2012 with just R250 in his
BEMEPNOWEEFRIMTETNET DPOLTICHIEES pocket. Operating from his parents’
PREVIOUSLY garage at the time, he bought toilet paper from
a wholesaler, rebranded it and started selling it
DISADVANTAGED? in his community in the Eastern Cape. Seeing
potential in the business, his father gave him a
Since the dawn of democracy, the government has implemented R200 000 loan, which he used to buy equipment
numerous empowerment policies in an e ort to upscale previously so that he could manufacture the product and
disadvantaged communities. Tiisetso Tlelima reports on companies have control over the quality of the toilet paper
he sells.
that have bene tted from the country’s transformation policies
“The financial support from
government resulted in a
growth leap; it put us three
or four years ahead of
other small businesses.”

— Tankiso Mosie

Like many small businesses, Red Ribbon Papers
struggled to get access to further funding until
it received a R3.7-million cash injection from
the Department of Economic Development,
Environmental Affairs and Tourism in 2017, and
another R50 000 in 2018 from youth empowerment
agency, NYDA.

This enabled the company to build a small factory,
buy equipment, raw materials, a bakkie and a trailer
to transport the product, making it a fully functional
factory. Additionally, the company received branding
and marketing support from the Small Enterprise
Development Agency (SEDA).

Today, Red Ribbon Papers employs 14 villagers from
Ngcamgeni in the Eastern Cape and manufactures
10 000 rolls of toilet paper daily. These are supplied to
the rural areas in the Eastern Cape and retail stores
such as Pick n Pay.

Although Red Ribbon Papers had clients before
receiving government support, Mosie believes that
without government’s empowerment policies, his
company wouldn’t have made it this far. “The financial
support from government resulted in a growth leap,
it put us three or four years ahead of other small
businesses,” explains Mosie. “We have more diverse
clients, more equipment and we are getting exposed to
new markets as a result. As a company that’s working
in the rural areas, we needed a lot of that coverage.”

Red Ribbon Papers is a 100 per cent black-owned
community-based company with 49 per cent of its
shareholders being women. The company prides itself
on employing staff directly from the community, thus
reducing unemployment among the youth in the

38 E M P O W E R M E N T

SUCCESS STORIES

area. “We didn’t want to recruit in a structured received preferential procurement,” explains Phali. Receiving government support has meant that
corporate way, so we set up a committee of
community members who were able to identify “The B-bBEE Act expects companies to develop BEEnovation, now in its sixth year of existence, was
the unemployed and most disadvantaged in the
community,” says Mosie. Red Ribbon Papers then took suppliers through the Enterprise and Supplier able to weather the storms and survive longer than
these unemployed youths, trained them and provided
them with employment as a way of giving back to Development (ESD) B-bBEE element, which has most small businesses, which struggle to pass the
the community.
transformed our business.” As a result, her business two-year mark. Du Preez thinks that even though
REMOVING BARRIERS
received business incubator support from various there are benefits to BEE policies, sometimes there
Creating employment opportunities is also at the
heart of Beyond Ability Talent Solutions, a company business incubation programmes such as Shanduka are many fly-by-night ESD programmes that waste
that finds jobs and economic opportunities for people
with disabilities. Black Umbrella, Raizcorp, SAB KickStart and the development spend and don’t produce effective results

Opportunities vary from learnerships and Branson Centre of Entrepreneurship. for beneficiaries or the donor company.
internships to permanent employment and linking
entrepreneurs with disabilities with procurement Beyond Ability continuously mentors and As a BEE beneficiary, Du Preez thinks it’s
opportunities. Beyond Ability also ensures that
people with disabilities work in safe environments by trains entrepreneurs with disabilities through a important that the support he received has a trickle-
conducting disability building audits in workplaces.
“It’s imperative to ensure that attitudinal barriers are seven-week business mentorship programme to down effect. His company works with Enactus, a
removed in a client’s workplace and we do this by
sensitising employers on how to relate to people with help them start their own businesses and help student-led organisation, which uses the power of
disabilities,” says Ntsoaki Phali, owner of
Beyond Ability. their new business ventures become compliant entrepreneurship to effect positive social change in

Founded in 2009, Beyond Ability partnered with with the B-bBEE Act. Phali makes sure that these the world. Enactus helps rural and underprivileged
the Department of Labour to effect change in SA
by ensuring that employers are aligned with the small businesses attract investors and funding so communities mostly in KZN use entrepreneurial
requirements of the Employment Equity Act. Since
its inception, the company has received non-financial that they can benefit from the business tools to address food insecurity issues as
support from the government’s enterprise
development agencies such as SEDA to develop opportunities that are created by well as bring extra income into those
its website and corporate identity, and NYDA for
bookkeeping services. the government and private FAST FACT communities. Du Preez serves
sector. “Hopefully, the as a business advisory board
Over and above the support from the development
agencies, the company has benefitted from participants themselves According to NYDA CEO Waseem member on Enactus and helps
empowerment policies such as the Broad-based will employ others by Carrim, the agency plans to provide the students understand
Black Economic Empowerment (B-bBEE) Act. “As a creating the needed jobs social economic empowerment for young business principles
result of the Act, our business was recognised as a and,in turn, the South people by increasing the number of youth- associated with their
valued supplier by most companies and automatically African economy will owned enterprises supported through the projects and getting access
grow,” says Phali. grant programme to 920 for the 2020/21 to resources. He also
Ntsoaki financial year, thereby decreasing youth provides them with general
Phali VALUE OF MENTORSHIP business mentorship.
unemployment. “BEE is the most powerful
The B-bBEE Act has also Source: pmg.org.za
helped companies such as policy that exists for small

BEEnovation, which works business and large businesses

in the transformation sector, if they understand how to use it,”

grow immensely. BEEnovation works concludes Du Preez.

with clients to make them more BEE-compliant

by helping them implement BEE efficiently and

cost-effectively. Its clients range from family and

medium-sized businesses to JSE-listed corporates.

“Firstly, and most obvious, is that our business

model is based on empowerment, the B-bBEE Act

and BEE codes attached to that act, and helping

companies reach transformation based on these

policies,” explains Lee Du Preez, managing director

of BEEnovation. Du Preez adds that his company

was a beneficiary of the ESD programme funded

by Engen and implemented by Raizcorp.

According to Du Preez, private companies

such as Engen were encouraged to support and

develop small businesses because of government

transformation policies.

As a beneficiary of the programme, he

was taught how to run a business effectively

and was also provided with mentors who

trained him and taught him how to reduce

mistakes, thus making his business sustainable.

IMAGES: SUPPLIED “Research shows that businesses last longer

because of mentorship and support, not Waseem
because they are financially viable,” says Carrim

Du Preez.

E M P O W E R M E N T 39



A t MMI Holdings, transformation is ADVERTORIAL
integral to achieving our company
purpose of enabling businesses and BEYOND THE SCORECARD:
people from all walks of life to achieve A HOLISTIC APPROACH
their financial goals and life aspirations. TO TRANSFORMATION
We are committed to empowerment through
transformation. This key focus area is integrated By Busisiwe Sithole, Group Head of Transformation at MMI Holdings
into our business and governance structures, which
has led us to having a broad, holistic approach. ENTERPRISE AND SUPPLIER DEVELOPMENT According to Stats SA, unemployment reached
27.1% in the fourth quarter of 2018. More than 54%
When the revised Financial Sector Code was We recognise that entrepreneurship is a driver of of youth in South Africa were unemployed at the
promulgated in December 2017, our Broad-based economic and socioeconomic improvement. Our end of last year. In 2017, we reset our CSI strategy
Black Economic Empowerment (B-bBEE) rating Enterprise and Supplier Development (ESD) strategy to specifically focus on youth employment to help
dropped from a level 2 to a level 3. However, we promotes the development of small and medium- address this issue.
immediately set to work to rectify this and in sized enterprises, specifically the creation and
January 2019, MMI Holdings became the first major growth of black-owned businesses. Through the MMI Foundation and using our
insurance group to reach Level 1 B-bBEE status Momentum and Metropolitan brands, we support
under the revised codes. MMI’s Masikhulise (Together we grow) ESD Trust South Africa’s young people on their journey to
is a broad-based ownership scheme that houses sustainable employment. The ultimate goal is getting
The rating applies to the group and our client- all MMI’s ESD initiatives. This trust supports and young people into jobs. Through our previous
facing brands, Metropolitan, Momentum, Multiply provides funding to empower small businesses to financial year initiatives, we managed to place 86
(rewards and lifestyle wellness programme), and access new markets, including MMI’s supply chain – youth in jobs and close to 700 youth are currently in
specialist brands, Guardrisk and Eris Property Group. thereby also addressing the challenge our industry is training opportunities.
facing around untransformed supply chains.
It is the result of our concerted effort to make This holistic approach to transformation has
a real difference to our industry and the country Our long-term strategy is to create a sustainable, translated into us being a B-bBEE Level 1 rated
through our approach to transformation, which resilient network of black suppliers, achieve true organisation, but it is about far more than just
includes the following five key pillars. economic empowerment and support the financial the scorecard. It’s about creating an enabling
and operational sustainability of black businesses. environment that allows diversity to be a significant
SKILLS DEVELOPMENT contributor to the economic growth of our country,
In partnership with ASISA and other ESD service thus contributing positively to South Africa and
As a learning organisation we are committed to providers, MMI has invested R67-million in the empowering South Africans.
providing employees with the skills that help them development of black-owned and black-women-
achieve their financial goals and life aspirations. owned businesses. This includes ESD programmes We have a responsibility to further transform
Through our human capital programmes, we for the development of a number of black-owned our business and continue to enable people from all
continuously explore innovative ways of enabling brokerages as well as cleaning and security suppliers. walks of life to reach their financial goals. We also
enable employees to reach their maximum potential, To date, more than 400 enterprises have been know that while we have achieved some success,
with more focus on the upskilling of black employees supported through ESD initiatives. there is still more work to be done. We will continue
and black female employees within our businesses. to work hard to be an active player towards creating
EMPOWERMENT FINANCING a transformed industry.
Black employees make up the majority of our
workforce, and more than half of our investment in Over the years, MMI has invested in CONTACT DETAILS
employee development is on black female employees. a number of transformational projects which
GAUTENG: Head Office
PREFERENTIAL PROCUREMENT include BEE transactions/black growth Telephone + 27 (0) 12 671 8911
funding, education, energy, infrastructure, Email: [email protected]
We provide small black-owned businesses with agricultural development and affordable Fax: + 27 (0) 12 671 8656
access to the market, and direct more Physical Address: 268 West Avenue,
procurement spend towards housing. In the previous financial year, Centurion, Gauteng, 0157
black-owned and black-female- we invested over R30-billion and have Postal Address: Momentum, PO Box 7400,
owned companies. strategically used empowerment financing Centurion, 0046
to develop and grow small businesses. As www.mmiholdings.co.za
Our procurement team a result, we contributed significantly to
is committed to proactively
identifying opportunities for the creation of employment in
preferential procurement our country.
of black-owned small and
medium-sized enterprises Busisiwe CSI
(SMEs) and qualifying Sithole
small enterprises (QSEs) South Africa has
throughout the value chain. untenably high levels of
Going beyond compliance, youth unemployment.
we support and develop
small businesses to enable
them to graduate onto our
supply chain and access
other markets.

E M P O W E R M E N T 41

EDUCATION

POOR EDUCATION SYSTEM,

POOR ECONOMIC GROWTH?

Are we geared towards turning out empowered and economically active
citizens? Na sa Akabor reports

I n it’s Struggling to Make the Grade: A Review of the national curriculum statements (NCS)/matric results, should be on rebuilding the foundations of education, IMAGES: SUPPLIED
Causes and Consequences of the Weak Outcomes which serve only about half the children who started starting in pre-school with high quality numeracy
of South Africa’s Education System, released in Grade One 12 years ago,” says Jansen. and literacy in the first three grades of primary
March this year, the International Monetary school; without such solid foundations, inequality
Fund (IMF) asserts that while South Africa has Professor Ruksana Osman, dean of the Faculty of persists in later years,” says Jansen.
made significant improvements in basic and tertiary Humanities at the University of Witwatersrand, says:
education enrolment, the country still suffers from “Education and good quality education is a game- To make matter worse, Minister of Basic Education
significant challenges in the quality of education by changer for individuals and families. It changes lives: Angie Motshekga lowered the pass rate for learners
almost any international metric. it gives you options and chances and provides a ticket in 2018. Jansen says it is a trend that has continued,
to economic and social empowerment, both essential rather than an aberration of 2018. “The effects on the
The report states: “South Africa has achieved for individual and country development.” school system and on the expectation set of teachers
significant improvements in access to education, and learners are quite devastating.
but the quality of education is significantly lagging, Jansen says education is “absolutely” the only real
and secondary education completion rates are way to empower South Africans, and the evidence “The new minister should reset the entire
comparatively low. is clear that the investment in human capital has the framework for school education in South Africa,”
highest personal and social rates of return in South continues Jansen. “High standards matched by high
“Due to conscious government efforts since the fall Africa. “In other words, education and training have support for enabling or empowering teachers to
of apartheid, access to education at a primary level is definitive payoffs for the individual and society, and deliver on those standards. The problem is not the
almost universal. Enrolment at the secondary level this is the direct route to empowerment, especially in learners; their aspirations and achievements are a
has also been expanding. However, completion rates disadvantaged communities.” consequence of what adults do.
at this level are low. In 2015, almost half of South
Africans aged between 25 and 34 had not completed “A new (EDUCATION) “Private education is a more viable option for
upper secondary education.” minister should reset the quality education at the moment, including low-cost
private education,” concludes Jansen.
The IMF further states that the reasons for SA’s entire framework for
poor school system are “complex and multifaceted, school education in South Ruksana
and associated with insufficient subject knowledge Osman
of some teachers, history, race, language, geographic Africa.”— jonathan jansen
location, and socioeconomic status,” adding that,
“low educational achievement contributes to low School leaders need to build powerful teams of
productivity growth, and high levels of poverty,
unemployment, and inequality”. teachers to deliver on the curriculum, says Jansen.

GOOD QUALITY EDUCATION OPENS “Without school-level leadership that is both credible
UP POSSIBILITIES
and effective, it is very hard to turn around our
Professor Jonathan Jansen from the Faculty of
Education at Stellenbosch University says very schools,” he says.
little has changed in systemic terms within the past
25 years. “The inequalities of infrastructure Osman says that the curriculum is one of the
and performance remain miles apart
for the 20 per cent of mainly former best levers for empowerment, particularly
white functional schools and the
large majority of black schools. a cutting-edge, innovative and
Too much emphasis has been
placed on Further Education fun curriculum.
and Training (FET), the last three
grades of high school, and the Both Osman and Jansen agree

that the biggest challenge today

is the weakness in the basic

education and foundation

Jonathan phase in pre- and primary
Jansen schools. “The emphasis

42 E M P O W E R M E N T





UNEMPLOYMENT

SOUTH AFRICA’S bring in new workers. He cites the example of the
Netherlands where benefits for new workers are
GREATEST SHAME introduced incrementally as one creative way to boost
job creation.
The ever-increasing rate of unemployment in post-democratic
South Africa is both alarming and discouraging. Is there a He says: “They say at year one of your employment
solution? asks Caiphus Kgosana you don’t get any benefits, you just get a basic pay.

WHAT THE FIGURES REVEAL The most worrying figure, however, is the number “Year two you derive some benefit and only in
of young persons aged 15–24 years who are not in year four do you derive the full complement of
According to the recently released Quarterly Labour employment, education and training. This category benefits. We need to become more flexible in
Force Survey by Statistics South Africa, in the first has increased from 32.4 per cent to 33.2 per cent, that regard, we must make it more attractive for
quarter of 2019, unemployment hit an all-time high of raising fears of increased social unrest. people to be employed.”
27.6 per cent. Employment has decreased in all
four sectors — formal, informal, agriculture and The National Development Plan (NDP) specifically Pienaar suggests a social accord between
private households. warns of this. “Rising levels of frustration and government, business and labour, modelled on a
impatience suggest that time is of the essence: failure similar accord entered into in Ireland in the 1990s,
The number of employed people has decreased to to act will threaten democratic gains. In particular, which helped to drastically curb that country’s
16.3 million, a reduction of 237 000 workers when South Africa must find ways to urgently reduce unemployment rate. Government, he says, needs
compared to the same quarter last year. Of those that alarming levels of youth unemployment and to to come to the party with more employer-friendly
still have a job, 11.2 million people are employed in the provide young people with broader opportunities,” legislation. “The growth in the creation of work
formal sector, 2.9 million in the informal sector, 1.3 it reads. globally lies in flexi-labour, not in formal employment.
million in private households, and 837 000 work in Can we have six months no-fault dismissals? Is that
the agricultural sector. “Unless there are a possibility?”
concessions by all parties,
The formal sector recorded the largest job losses at He says business needed to give an undertaking
126 000, followed by the informal sector, which shed we will not have an that it would end its investment strike and relook
68 000 jobs. Around 31 000 jobs were lost in private answer to unemployment.” retrenchments, or even fund the re-skilling of workers
households, while agriculture lost 12 000 jobs. earmarked for retrenchment, so they can be employed
— hugo pienaar in other business units or other sectors. Unions must
Of the ten major industries tracked by Statistics consider wage freezes in return for job retention, as
South Africa, six of them shed jobs in the period INNOVATIVE IDEAS NEEDED happened in Ireland.
under microscope. The construction industry
recorded the largest decrease of workers at 142 000, Given this gloomy picture, what can be done to bring “We have seen instances there where certain
followed by finance and other business services, down the high unemployment rate? What innovative unions came to the table and said that to retain jobs,
which shed 94 000 jobs. Around 50 000 jobs were ideas are there to boost job creation? they would not take increases that year. Unless there
lost in community and social services, while private are concessions by all parties, we will not have an
households employed 31 000 fewer people. But it was The NDP suggests that for the economy to grow answer to unemployment,” he says.
not all bad news. Employment gains were recorded sufficiently to create much-needed jobs, the GDP has
in the transport sector, which hired 59 000 more to increase by five per cent every year until 2030 and But, Thembinkosi Mkalipi of the Department of
people, trade added 25 000 more workers, utilities and SA’s per capita income must be at double the current Labour says experts and other observers that were
manufacturing sectors followed with 16 000 and rate. Key proposals to curb high unemployment criticising the Labour Relations Act (LRA) have to
14 000 new jobs respectively. include raising exports, breaking the disincentive point out what it is in the legislation that inhibits
to hire young people and unskilled workers by job creation. He says the legislation was meant to
The unemployment rate was also higher incentivising employers to take them on board, and safeguard worker rights by introducing recourse
among those without educational qualifications, lowering the costs of energy, transport and logistics. mechanisms such as the Commission for Conciliation,
when discouraged job seekers are excluded. The Mediation and Arbitration (CCMA) to mediate in
unemployment rate among those without matric is Professor Hugo Pienaar, an expert in employment labour disputes.
55 per cent, reducing to 34.5 per cent among those law and director in the employment practice division
with only a matric certificate. For those with some at Cliffe Dekker Hofmeyr law firm, believes in only “Is it the dismissal provisions in the LRA? Do
form of tertiary qualification, the unemployment rate one formula — making it attractive for employers to they want workers to be dismissed without a
was at 6.1 per cent while among graduates it is at 2.1 hearing? Which part of the LRA affects employment
per cent. The Western Cape has the lowest number of negatively? What do we mean when we say employer-
unemployed persons at 19.5 per cent, and the Eastern friendly legislation?
Cape has the highest number of unemployed people at
37.4 per cent. “Are you saying that when workers are dismissed,
they must not go to the CCMA, they must not
challenge the dismissal? Are you saying when
workers are dismissed, there must be no hearings?”
He also dismisses suggestions that small to medium
enterprises be excluded from certain sections of the
LRA to make it easier for them to hire new workers.

“Are you saying small-sized business should be
able to dismiss me in the morning without a hearing?
Without me having to defend myself? From which
provision should they be excluded?” he asks.

E M P O W E R M E N T 45

ENTREPRENEURSHIP

YOITU’SNSOTTHAOWRT …
Entrepreneurs may have the right idea and the will to succeed, but are often bogged
down by lack of finance and critical business skills. Caiphus Kgosana investigates where

entrepreneurs can find assistance 

W hen Mishack Kgapane and his wife He also bought another bakkie customised to fit a cold SMME SECTOR (third quarter
started selling packaged ice cubes from storage component at the back. The NEF also provides of 2018 - stats sa)
their home, they did it to augment their him with regular support, from how to manage his
family income. “It all started with a books, advice on growing the business, in human • 68.7 per cent of SMMEs are in the
single icemaker that was producing resource matters, accounting and tax services as well informal sector.
enough to sell around 20 or 30 packets of ice a day. It as structured repayment terms. • SMMEs in the formal sector accounted
was so that we could earn some extra money because for 60 per cent of employment.
my wife was unemployed,” says the mid-level civil His business is set to more than double its sales in • 65 per cent of SMME owners are 40
servant from West View, west of Pretoria. a year’s time, and Kgapane is almost ready to quit years old and above.
his job and run it on a full-time basis. His long-term • 36 per cent of SMME owners are
Back then he was staying in Saulsville township. plan is to grow his business to the scale where he between the ages of 25–39.
Ice is big business in the township where residents can supply packaged ice to large retailers such as • 35 per cent of all SMMEs are located
are into outdoor life during summer days when it’s Pick n Pay, Shoprite and Spar. He is in the process in Gauteng.
sweltering. It was only when local drinking holes, of complying with their requirements and looks set • The number of SMMEs in Gauteng grew
spaza shops, and other smaller businesses started achieve this vision. by 20 000 in the year under review.
ordering from his business, Millenium Ice, that
Kgapane realised there was an opportunity to grow TRAINING AND ADVISORY SERVICES SOME STATE-OWNED FUNDING
the business. AGENCIES IN SOUTH AFRICA
Andrew Bam of the Small Enterprise Development
He took a personal loan and invested in two Agency (SEDA), an entity of the Department of • The National Empowerment Fund
industrial-size ice machines and cool storage, which Small Business Development, said his organisation • Industrial Development Corporation
he installed in his backyard. He bought a small was created to assist start-ups and small to medium • National Youth Development Agency
bakkie, employed an assistant and started making enterprises, but not with funding. • The Land Bank
regular deliveries of packaged ice cubes at R10 a • Small Enterprise Finance Agency
packet to a growing number of clients. On a good day, SEDA has the largest entrepreneurial support • Technology Innovation Agency
he could deliver up to 400 ice cubes. “Ice is a seasonal and development network across the country,
business, so what was good about securing drinking with 56 branches and 46 co-location points within opportunities to come to them. “Access to market is
spots as clients was that they have demand for ice municipalities. This extends its presence into perseverance. You need to go out there and knock on
throughout the year. That meant my business could townships and rural areas. The agency provides a million doors, and get the right product,” he says.
still make money even in winter,” says Kgapane. non-financial support, which includes training for
prospective entrepreneurs and in-depth diagnosis of On the part of government, Bam hopes for policy
FINANCIAL ASSISTANCE a small enterprise or co-operative. Its network boasts direction that will encourage deregulation and make
74 incubators and accelerators across the country, it easier for entrepreneurs to get into business. “The
With a growing clientele beyond the township, supporting over 3 000 entrepreneurs in technology- key for us is to look at deregulation and the challenges
Kgapane was told that the National Empowerment based sectors such as the ICT sector, biotechnology, of getting into business: improved safety and security,
Fund (NEF) existed to fund start-ups such as his. He agriculture and agro-processing and engineering. making it easier to register a business, assisting
approached the NEF and was told he could qualify. So, entrepreneurs with making a business case, not just a
he drafted a business plan, filled in all the forms and According to SEDA’s statistics, there are 2.5 million business plan. There’s also a big gap on start-up funds,
provided all the requirements. small and medium enterprises in South Africa, we must find a way of closing that gap.”
employing 10.1 million people. Bam believes that with
After months of waiting, the NEF approved a the right focus, the SMME sector can be a massive
loan of R700 000. The money has allowed Kgapane’s contributor to employment creation. With figures
business to grow immensely. He was able to move showing that most start-ups fold in the first year of
his business to an industrial site in the township, business, he advises entrepreneurs to put in the hard
purchase additional ice machines and hire extra help. work, show extra commitment instead of waiting for

46 E M P O W E R M E N T

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