Latest news with #BEE
IOL News
2 days ago
- Business
- IOL News
Exploring mixed reactions to the Freedom From Poverty Bill: A new approach to replacing BEE and employment equity
The Institute of Race Relations has introduced a new Bill that seeks to replace the Black Economic Empowerment and Employment Equity. Pictured is Minister of Employment and Labour, Nomakhosazana Meth. Image: GCIS The Freedom From Poverty Bill, introduced by the Institution of Race Relations (IRR) as a replacement for the Black Economic Empowerment (BEE) and the Employment Equity Act (EEA), has been met with mixed views. Under the bill, there is Economic Empowerment for the Disadvantaged (EED), which is codified as an alternative to BEE and a proposal for true transformation, as it will be based on need, not race. It was launched this week as part of the #WhatSACanBe campaign in a webinar discussion between IRR Head of Policy, Dr Anthea Jeffery, and IRR Strategic Engagements Manager, Makone Maja. The BEE aims to correct past inequalities and is governed by the Broad-Based Black Economic Empowerment Act. Its application is limited to people who are black, of mixed race, and Indian, and excludes white people, including those with disabilities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Explaining the difference between the two policies, Jeffery said the BEE uses race as a proxy for disadvantage, EED targets the poor, and identifies disadvantage based on a means test. 'This would enable poor whites to benefit too, but 99% of its benefits would in practice go to poor black people. Its non-racial focus would reduce racial divisions, put an end to race classification, and comply with the Constitution's founding value of non-racialism. 'The EED is voluntary, which means companies would no longer be required to keep the current BEE scorecard to aid them in state procurement contracts, or race-based ownership deals, management posts, and procurement contracts. EED's scorecard incentivises companies for their key contributions to the economy by rewarding them with EED points for these actions. With EED, the points cannot be redeemed to gain from preferential procurement,' Jeffery said. She added that EED introduces education and health voucher-based support for poor people to be used at schools or health facilities of their choice. This, she said, will redirect much of the revenue now spent on dysfunctional schools, hospitals, and housing developments into tax-funded vouchers for low-income families. The bill states that a system of tax-funded vouchers must be created and administered by provincial administrations, with the help of public-private partnerships where necessary, and it will go hand in hand with social grants. An emphasis was made that this will not take away social grants. 'In the instance of schools, the voucher will go with the child to the school of the family's choice. The vouchers will fund teachers' salaries, study materials, maintaining the school grounds, and more. Parents can remove their children from poor-performing schools and take the vouchers with them. This will engender competition and incentivise excellence at all levels of the supply-side of education and raise due diligence on the demand-side. The health vouchers will operate the same way,' Jeffery said. Maja said ending fake transformation, which only enriches those at the very top, is critical to truly changing South Africa's economy. 'True transformation would move the needle on the numbers of unemployment, economic growth, and the rates of poverty and decline of state services and infrastructure. All of which have either stagnated or, in some instances, worsened since the advent of fake transformation,' said Maja. Dr Rowena Bernard, a senior lecturer at the University of KwaZulu-Natal's School of Law, said the proposed EED excludes racial criteria and any form of racial classification as a basis for empowerment. She added that it emphasises merit, skills, objective criteria, and measurable socio-economic disadvantage, and no EED measure may rely on demographic representativity, racial criteria, racial targets or quotas, or any form of classification by race. The focus of the BEE is on redistribution instead of growth. It is based on racial classification and preference, which goes against the founding principles of the Constitution. The BEE tends to benefit only a small elite of South Africans; unfortunately, the vast majority of black South Africans still receive limited benefits from the policy. South Africa's progress in reducing poverty and inequality, and improving socio-economic rights has been relatively slow, Bernard said. 'The BEE overlooks contributions made by the private sector in terms of upward mobility by investing, employing, innovating, and paying taxes. According to the BEE policy, businesses are to be measured according to a scorecard to determine their compliance level. The elements in the generic scorecard relate to ownership, which measures the economic interest, voting rights, and net value of shares held by black people. 'Management control assesses the number of executive boards, senior, middle, and junior management positions held by black members in a business. Skills development focuses on skills development initiatives and training for black employees.' Under the EED, existing race-based contracts or empowerment schemes will be reviewed within 18 months and may also be terminated by a court or tribunal if they are tainted by inflated pricing, corruption, undue influence, or other damaging or unlawful conduct. She added that the EED proposes the introduction of a voucher system in the three critical areas of education, housing, and health, affecting the lives of the vast majority of South Africans. 'This proposed voucher system will be available to all South Africans and will not be based on any racial criteria. A means test will be used to determine an individual's eligibility for the voucher. 'This means that people earning below the threshold would be granted education vouchers, up to a certain amount; this voucher would then be used at the school of their choice. This would be done by redirecting the education budget. This system would give children from lower-income families the right to make their own educational choice. This would also have an effect on failing state schools, which many children have to attend because they have little other choice. This allows for better choices and better education opportunities,' she said. Bernard added that the vouchers would work similarly for housing and healthcare, as people would no longer have to solely rely on government services. 'Access to the vouchers would enable people to improve their living conditions, not rely on the inferior, low-cost houses built and provided by the South African government. They will be able to use the voucher to either build better quality homes or rent proper homes. It is envisioned that it will reduce homelessness, housing instability, and overcrowding. Health vouchers will increase access to healthcare. People will no longer have to rely on free public health care treatment, which will increase access to better quality health care,' she said. The EED, she said, brings in a new perspective to address the real challenges all South Africans experience regardless of their race. It provides realistic options to empower and uplift those who are disadvantaged. Bernard said the bill may have serious consequences for employment laws. 'Affirmative action measures and policies will also be affected as employers will not be able to introduce preferential policies that result in racial preferencing. All employees will have equal opportunities in relation to promotions and fair labour practices. All employees will have equal opportunities to receive training and skills development,' she said. She added that it may result in financial strain and capacity issues as employers will be expected to review and change existing employment policies and practices. There may be an increase in employee grievances concerning unfair discrimination claims, which will lead to a strain on the resources of the employer and the court system. 'The EED Bill will certainly benefit the majority of black employees, but the proposed non-racial approach would reaffirm the Constitution's founding values of equality and human dignity,' she said. However, Professor Ntsikelelo Breakfast said the IRR is using non-racialism to block transformation. 'The issue of transformation is not debatable, because it comes from the Constitution. The preamble of the Constitution talks about the transformation, which is a historical appreciation. So, we can't have nation-building and social cohesion without transformation. 'We can't be united when the rugby national team is playing, but when it comes to other issues, we don't want to talk about them. It looks like some people want to preserve their privileges. In my opinion, people are not being honest, because if you look at poverty and unemployment, those social cleavages have a colour,' Breakfast said. He added that the BEE has not achieved its intended objective, but that doesn't mean that transformation must take a back seat. 'We need to call out people who are pushing back from transformation, while at the same time talking about social cohesion and nation-building. Unemployment, inequality, and poverty still indicate that race is an issue. How do you transcend racial categorisation but still have these issues along racial lines? If this bill goes to Parliament, it won't be adopted by the majority. I don't think this policy is proposed in good faith. I find it very suspicious,' he said.
Time of India
2 days ago
- Business
- Time of India
Energy efficiency push: Electronic appliances to soon carry detailed labels for transparency; what it means for you
Consumers will soon be able to verify star rating claims on electronic appliances such as air-conditioners, refrigerators, televisions, and washing machines, as they will carry detailed energy efficiency labels aimed to help people make informed choices. According to people familiar with the development,the updated labels are a part of the upcoming 'Bureau of Energy Efficiency (Appliance Labelling) Regulations, 2025.' The Bureau of Energy Efficiency (BEE) under the Ministry of Power said in a notification dated 10 July, that the new labels will offer greater transparency, specifying the product's country of origin, power consumption in easy-to-understand language, a unique serial number and a QR code for traceability. Industry executives cited by ET said that current energy efficiency labels do not provide enough information and are not consumer-friendly. There have also been instances where companies were found making false claims about energy performance. The new labelling system aims to encourage consumers to pick low power-consuming models and curb misleading claims, they added. Apart from common household appliances, manufacturers will also be required to affix these new labels on deep freezers, chillers, ceiling fans, geysers, solar photovoltaic modules, and certain commercial products. The regulations will lay out the process for applying for and obtaining label authorisation, as well as compliance testing and applicable label fees, the BEE said. The rules also mandate that the new labels be prominently displayed on the product itself and at retail stores. BEE has already proposed scrapping older label design rules for certain white goods like air-conditioners, refrigerators and televisions. 'There is a revision going on regarding label design. There are altogether five notifications on that,' a government official was quoted as saying. Under BEE's existing star-rating system, appliances are rated from one star (least efficient) to five stars (most efficient). These ratings are revised every two to four years to reflect updated energy efficiency benchmarks. As per the new norms, each label must display a unique label number, equipment name, brand name, model number, energy performance parameter, label year, rated capacity, star level, validity, country of origin, and the appliance's serial number. A QR code will also be included for digital verification. ET had earlier reported that the power ministry is working on a plan to incentivise consumers to replace air-conditioners that are 10 years or older with new five-star models, offering them scrapping benefits and discounted prices to support the energy efficiency push. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News24
2 days ago
- Business
- News24
MTN backs BEE plan that could open door for Starlink - but only on equal terms
Fani Mahuntsi/Gallo Images MTN has said it welcomes the proposed policy direction that could alter BEE ownership rules to allow multinational communications operators such as Starlink to operate in South Africa, as long as the same rules apply to everyone. The South African telecommunications giant also said a legislative amendment may be required in Parliament to bring the proposal into effect, which would likely take a long time. MTN made these inputs in its submission on the proposed policy direction on the recognition of equity equivalent investment programmes in the ICT sector.
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Business Standard
2 days ago
- Business
- Business Standard
Star rating, QR code, origin: Labels on ACs, TVs, fridges to get a revamp
In a major step to help consumers pick genuine and energy-efficient products, new labelling norms are being introduced for appliances such as ACs, refrigerators, washing machines, TVs, ceiling fans, geysers, and solar PV modules, according to a report by The Economic Times. The labels will soon carry more detailed and user-friendly information, including the product's energy consumption, brand details, country of origin, star rating, and a QR code for traceability. The Bureau of Energy Efficiency (BEE), under the Ministry of Power, issued a notification on July 10 for the Bureau of Energy Efficiency (Appliance Labelling) Regulations, 2025. These rules will replace older labelling guidelines for white goods and will also cover several commercial products. New programme to replace old ACs with energy-efficient alternatives The Ministry of Power, in coordination with the BEE, is developing a new initiative aimed at helping households replace air conditioners (ACs) older than a decade with newer, more energy-efficient alternatives. The proposed programme will likely include financial incentives to encourage the switch to five-star rated ACs, which consume much less electricity. India has seen a sharp rise in AC sales, jumping from 8.4 million units in 2021–22 to nearly 11 million in 2023–24. This reflects growing demand for cooling, especially as temperatures continue to rise. According to government estimates, buildings in India used nearly 500 terawatt-hours (TWh) of electricity last year, with cooling accounting for around 25 per cent of this. Most ACs over 10 years old are rated below three stars, making them significantly less efficient than current models. BEE states that replacing these with five-star rated units could help households save up to ₹6,300 annually in electricity costs while easing stress on the power grid during peak summer. Mandatory temperature limits proposed to improve energy use India is also considering setting a national temperature range for all air conditioners — including those in buildings and vehicles — to between 20 degrees Celsius and 28 degrees Celsius. This would be the first time such limits are made mandatory. The idea is to reduce power demand spikes, lower electricity bills, and improve energy use efficiency. While some ACs currently allow settings as low as 16 degrees Celsius or as high as 30 degrees Celsius, the new rule would cap those extremes. According to a 2020 BEE directive, all star-labelled ACs — whether for rooms or vehicles — must have a default setting of 24 degrees Celsius. Commercial buildings are allowed to adjust this range slightly, between 24 degrees Celsius and 25 degrees Celsius, to balance comfort and power savings.
Time of India
3 days ago
- Business
- Time of India
Watt's Inside: Refrigerators, ACs, TVs to get new labels revealing energy use, brand details, and more
Kolkata | New Delhi: Air-conditioners, refrigerators, televisions, washing machines and other appliances will soon sport new energy efficiency labels with detailed product information and traceability, to encourage consumers to choose energy-efficient products and reduce cases of fake claims of star ratings, people aware of the development said. The label will clearly specify the product's country of origin and its energy consumption in easy language to help consumers make an informed choice, besides a unique serial number and QR code, they said. Explore courses from Top Institutes in Select a Course Category Healthcare healthcare Finance Digital Marketing PGDM Data Science CXO Data Analytics Public Policy Others Operations Management Degree Management Technology Leadership Cybersecurity Product Management MBA Design Thinking Project Management Artificial Intelligence MCA others Data Science Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details The new 'Bureau of Energy Efficiency (Appliance Labelling) Regulations, 2025' will establish a comprehensive framework governing the display of essential information on labels, the Bureau of Energy Efficiency (BEE) under the power ministry said in a notification dated July 10. Industry executives said the current energy efficiency labels do not contain so much information and are not that consumer friendly. There have also been cases where BEE has found some companies making false claims on energy efficiency. The intention of the new labelling system is to ensure consumers choose models which are low in power consumption to save energy, they said. Apart from common household appliances, manufacturers also need to fix these labels on deep freezers, chillers, ceiling fans, geysers, solar photovoltaic modules and some commercial products. The new regulation will also establish the "process for applying for and granting permission to affix such labels and to provide for compliance testing and label fees," the BEE notification said. Companies must ensure these labels are prominently displayed at retail stores and on the products. BEE has already proposed to repeal old rules on the design of labelling on certain white goods such as refrigerators, air conditioners and televisions. "There is a revision going on regarding label design. There are altogether five notifications on that," a government official said. BEE currently fixes the energy efficiency norms for household and commercial appliances under a star rating system, with the five star being the most energy efficient while the one star least. These ratings are revised periodically, in every 2-4 years, to tighten the energy efficiency standards. As per BEE, labels under the new norms should display a unique number of label, equipment name, brand name, model number, energy performance parameter, label year, rated capacity, star level, validity, country of origin and serial number of the appliance. There will be a QR code as well. Earlier this month, ET reported that the power ministry is working on a plan to push customers to replace their 10 years or older air-conditioners with new five-star energy efficiency rated ones at below-market prices by offering them scrapping benefits.
