As things stand entities that wish to generate B-BBEE points from the Youth Employment Service (Y.E.S) initiative will have to score full points on the 2.5% target for “Skills Development Expenditure on Bursaries”. This might change. The bursary pre-qualification criteria might be dropped.
The department of trade and industry communicated that it is considering delinking the “Skills Development Expenditure on Bursaries” qualification criteria.
The department said “Preliminary comments received since the Gazette on 29 March 2018, are indicating concerns regarding the proposed qualification criteria “220.127.116.11” which requires entities to score full points on the 2.5% target for “Skills Development Expenditure on Bursaries” in order to qualify for the Y.E.S BEE recognition.
The department added that it “views the participation in Y.E.S to be in line with the objectives of B-BBEE policy and has keen interest that there be maximum impact resulting in empowerment of young South Africans. In order to create certainty and ensure rapid take up in the Y.E.S, has considered to delink the Y.E.S and the Bursary target of 2.5%. This means that the Bursary contributions will not be a precondition to obtain BEE recognition as a Y.E.S participating entity.”
This was part of a statement that was inviting members of the public to submit their thoughts on the proposed amendment of the the Broad-Based Black Economic Empowerment Amendment (B-BBEE) Act 53 of 2003 in order to accommodate YES. The department released released the proposed amendments on 29 March 2018 for a 60 days public commentary process. The amendments relate to the Reviewed Statement 000 and 300 of the B-BBEE Codes of Good Practice.
The DTI said “The proposed amendments aim to promote innovative ways to increase the participation of black South Africans and in particular black youth in the economy. Key to these amendments is the Youth Employment Service (Y.E.S) initiative and the introduction of a ring-fenced Point indicator on the skills development Scorecard for 2.5% spend target on Bursaries for Black Students attending Higher Education Institutions.
“The Youth Employment Service (Y.E.S) initiative was one of the initiatives presented in the 2018 State of the Nation Address by President Cyril Ramaphosa. The Y.E.S initiate aims to improve the grim employment outlook for young work seekers by offering work opportunities and therefore inclusion in the economy.
“The introduction of the ring-fenced 2.5% target for “Skills Development Expenditure on Bursaries for Black Students at Higher Education Institutions” is critical intervention to enable the raising of funds for the education of needy and deserving black youth.
“Both the above highlighted changes are critical policy revisions that are deliberately targeting youth empowerment initiatives through work opportunities and critical skills development.”
The proposed changes can be accessed from the issued (gazette Vol. 633 29 March 2018 No. 41546). The DTI also noted that it will be will be hosting advocacy sessions on the Reviewed Statements during the month of May 2018.
The 60 days process of public comments will close on 29 May 2018. Inputs and comments should be submitted to Mr Jacques Manus vial email: JManus@thedti.gov.za.