July in South Africa marks the birth of Nelson Mandela which is celebrated worldwide. We can only wonder today about his thoughts would be of our beautiful country today. Looking back at S A History in July with the links below our country has been through a lot and yet we have survived. Challenges there are, but we are a diverse bunch of people and as long as we all focus, we will survive.
Load shedding is far worse than Covid it appears. Companies are struggling to adapt, and this puts us all in a negative frame of mind but how is South Africa really performing?
The cumulative value of exports during the first five months of the year amounted to R791-billion, which is a record.
Wholesale trade sales figures were R260-billion in May, the second highest ever. For the first five months of the year, they were R1.2-trillion, which is a record and 18% higher than in the same period last year.
The value of mining production was R89-billion in May, 92% higher than the same month in 2019, i.e., pre-covid.
New vehicle sales, which have been higher every month this year than last year, in marked contrast to almost every other large and medium sized country in the world. Car sales in SA increased by more than 7% in June and export sales by 18%.
So, with all the challenges we face it’s not all doom and gloom.
It looks more and more like Zimbabweans in South Africa potentially will no longer be given work permits unless they meet the critical / scares skills requirements. This will have a major effect on business, and you need to take special note of this as both an employer and employee.
The department of labour is reviewing Employment Equity currently regarding sector specific targets per industry, this too will have a major effect on how business is structured moving forward.
President Ramaphosa has selected his delegates for a review of the B-BBEE codes what is concerning to me that once again the panel does not have a single verification company on the panel. This is a major shortcoming that always results in a lot of back and forth.
We are being called on more and more to fix ownership structures in companies that were implemented. Before you implement a structure that sounds too good, I suggest you get a second opinion from a different consultant or a verification company – this will save you a fortune. It’s not a simple task in simply unwinding an existing structure.
Half of the year is now well over please do not leave your BEE, EE and Skills requirements to the last-minute start now it will save you money and hassle.
As always take care
CEO – Compliance Hub