Latest news with #FinancialSectorCharter
TimesLIVE
12-06-2025
- Business
- TimesLIVE
Glittering towers, shadowed lives: why Peter Bruce's ‘voluntary' transformation is a cruel mirage
Finally, the Financial Sector Charter saw dramatic shifts once banks were obliged to earn Level-1 BEE status. The Banking Association's 2024 Transformation Report now shows a remarkable 83% of total procurement spend landing with black-owned suppliers, a monumental leap from under 30% just a decade earlier. Critics like Bruce are right that B-BBEE needs sharpening. It has had potentially detrimental shortcomings, including instances of fronting and the enrichment of a politically connected few, creating a new class of black elite that has alienated the very masses the policy was meant to uplift. However, these should be arguments for refining BEE, not for scrapping it altogether. A constructive agenda should build on, not dismantle, the existing scaffold of transformation legislation. A recent peer-reviewed study, by German economists at Ruhr University Bochum and the German Institute of Development and Sustainability, published in the June 2025 Journal of Comparative Economics, analysed firm-level data for 356 JSE-listed companies over 15 years (2004—2019). Their findings are unequivocal: BEE has had no negative impact on profitability, has a small but statistically significant positive effect on turnover and a mildly positive effect on labour productivity. Specifically, a one-point increase in the BEE score is associated with a small increase in turnover of up to 0.8%. This suggests that while there might be costs associated with BEE compliance, these do not necessarily translate into reduced profitability for firms. This disproves the critique that BEE harms businesses, at least within the sample of large listed firms in South Africa. Additionally, reduced discrimination in the labour market and enhanced human capital levels through skills development dimensions are likely to enhance labour productivity. The study highlights that larger firms are particularly likely to benefit from BEE in terms of higher turnover. This evidence directly refutes the claims that BEE universally undermines business performance or confidence. Instead, it suggests a nuanced impact where for many firms, particularly larger ones, BEE compliance can lead to tangible benefits. When a significant portion of the population sees little tangible improvement in their economic circumstances despite political freedom, it corrodes faith in the democratic system and its institutions. This fertile ground of disillusionment and frustration provides a breeding ground for populist movements that promise false radical change and challenge the existing order. The rise of Donald Trump's Make America Great Again movement in the US, the resurgence of Nigel Farage with his Reform UK, the Alternative für Deutschland in Germany, Marine Le Pen's National Rally Party in France, and the recent election of Karol Nawrocki in Poland are the bitter fruits of this widespread disaffection. They weaponise the anger from unmet expectations of those who feel left behind by the current economic order. Our very own EFF and MK Party belong to the same milieu. Abrahams closed Mine Boy with Xuma and his comrades marching up the reef, their lanterns held high, demanding humanity's just dividend — dignity, work and an end to systemic exploitation. Bruce would ask them to dim those lanterns and trust the mine-owners' goodwill. History, however, tells us unequivocally that the shadows at the bottom will only thicken if we succumb to such a deceptive illusion. Transformation in South Africa cannot rely on a handshake or a fleeting promise.
Zawya
06-05-2025
- Business
- Zawya
South Africa: FNB, IAAE launch new initiative to empower Black-owned SMEs
I Am an Entrepreneur (IAAE) in partnership with FNB has launched a new initiative called The Growth Code to empower Black-owned small and medium-sized enterprises (SMEs) that are poised for scale, investment readiness, and long-term sustainability. Keitumetse Lekaba, managing director at I Am an Entrepreneur | image supplied 'The Growth Code is more than just a business development initiative. It is a growth accelerator for entrepreneurs who are already generating significant traction and are now looking to expand their footprint "This bespoke programme combines financial support, sector-specific mentorship, and meaningful network access—equipping entrepreneurs with the tools they need to overcome structural and operational challenges associated with scaling,' said IAAE. 'Our commitment is to meet entrepreneurs at the point of their need,' said Keitumetse Lekaba, managing director at IAAE. 'The Growth Code is more than just a support system—it's a collaborative blueprint designed to help Black-owned businesses create meaningful impact, scale with precision, and build legacies that resonate beyond the present.' Programme benefits Through this programme, selected entrepreneurs will benefit from: - Funding opportunities – Access to capital and financial instruments needed to fuel growth. - Tailored mentorship and guidance – Personalised coaching from seasoned industry leaders and business strategists. - Strategic networks and partnerships – Opportunities to build relationships with corporate partners, investors, and like-minded business leaders. - Customised solutions – Targeted interventions and support to address operational, market, and strategic scaling challenges. Eligibility criteria Entrepreneurs interested in applying for The Growth Code must meet the following criteria: - Be at least 51% Black-owned, as prescribed in the Financial Sector Charter issued in terms of the Broad-Based Black Economic Empowerment Act, 2013 (FSC). - Be a Qualifying Small Enterprise (QSE) operating in high job-creation industries such as retail and manufacturing services. The business must be revenue-generating (whether profitable or not) and in need of scale. - Operate under a business-to-business (B2B) model. Businesses with a business-to-business-to-customer (B2B2C) model may be considered on a case-by-case basis. - Have been in operation for two or more years within South Africa. - Have an annual turnover between R10m and R50m. - Demonstrate good financial health. - Demonstrate job growth potential. - Demonstrate passion and resilience for business. - Require access to growth finance. - Consent to and pass necessary background checks. Palesa Moeletsi, buiness development support manager at FNB: 'This partnership is about more than just financial support—it's about creating lasting, transformational impact. We believe that when Black-owned businesses are equipped with the tools, resources, and networks they need to succeed, they become powerful engines for innovation, job creation, and community development.'
TimesLIVE
05-05-2025
- Business
- TimesLIVE
IAAE and FNB team up to help black-owned QSEs crack ‘The Growth Code'
I Am An Entrepreneur (IAAE), a leading platform dedicated to enabling entrepreneurial success, has announced the launch of The Growth Code, an ambitious 18-month strategic partnership with First National Bank (FNB). This initiative is specifically designed to empower black-owned small and medium-sized enterprises (SMEs) that are poised for scale, investment readiness, and long-term sustainability. In a time when small businesses are navigating complex economic landscapes, The Growth Code offers a timely and strategic response to the needs of high-potential entrepreneurs. With a unique focus on scaling businesses that have moved past the survival stage, the programme is tailor-made for those ready to grow strategically, attract investment, and make a broader economic impact — locally and beyond. Bridging the gap between growth and scale The Growth Code is more than just a business development initiative. It is a growth accelerator for entrepreneurs who are already generating significant traction and are now looking to expand their footprint. This bespoke programme combines financial support, sector-specific mentorship, and meaningful network access — equipping entrepreneurs with the tools they need to overcome structural and operational challenges associated with scaling. 'Our commitment is to meet entrepreneurs at the point of their need,' says Keitumetse Lekaba, MD at IAAE. ' The Growth Code is more than just a support system — it's a collaborative blueprint designed to help black-owned businesses create meaningful impact, scale with precision, and build legacies that resonate beyond the present.' Through this programme, selected entrepreneurs will benefit from: Funding opportunities: Access to capital and financial instruments needed to fuel growth. Tailored mentorship and guidance: Personalised coaching from seasoned industry leaders and business strategists. Strategic networks and partnerships: Opportunities to build relationships with corporate partners, investors, and like-minded business leaders. Customised solutions: Targeted interventions and support to address operational, market, and strategic scaling challenges. Eligibility criteria Entrepreneurs interested in applying for The Growth Code must meet these criteria: Be at least 51% black-owned as prescribed in the Financial Sector Charter issued in terms of the BBBEE Act, 2013 (FSC). Be a Qualifying Small Enterprise (QSE) business that operates at varying stages of development and in high job creation industries, such as retail and manufacturing services, and be revenue generating but not profitable; or revenue generating and profitable, but requires scale; Must have a business-to-business 'B2B' business model. Businesses that have a business-to-business-to-customer 'B2B2C' business model will be considered on a case-by-case basis and may be accepted based on merit; Have been in operation for two or more years within SA; Have a turnover of between R10m and R50m per annum; Demonstrate good financial health; Demonstrate job growth potential; Demonstrate passion and resilience for business; Require access to growth finance; and Consent to and pass necessary background checks. A shared vision for inclusive economic growth 'IAAE and FNB are united in our vision to empower the next generation of industry leaders. This partnership is about more than just financial support — it's about creating lasting, transformational impact,' says Palesa Moeletsi, Business Development Support manager at FNB.
