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Your Source of South African Current Affairs

4th Issue

SA Outlook DEVELOPMENT & EDUCATION TRADE & INVESTMENT FINANCE & BUSINESS TRAVEL & TOURISM CURRENT AFFAIRS

Publishing


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SA OUTLOOK

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ENERGY


ENERGY

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Contents Institute for Futures Research

IFC & 1

Africa Energy Indaba – From Transformation to Transition

2&3

Expatweb – Expatriate Management Network Coccoon Network

5 6&7

Message from the Publisher

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Izimbokodo Energy

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Institute for Futures Research - The Fifth Industrial Revolution could be born in Africa 10-11 Institute for Futures Research - SA to Host Prominent Global Thinkers

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Teach the Future – Creating Sustainable African Futures

14-15

Petroleum Agency SA – Explore South Africa 16-17 Petroleum Agency SA – By the Book

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Phoenix College makes its mark!

28-29

Vuyo Dubese – The Role of Inclusion in Venture Capital

30-33

Math Engineering

34

Universal Trading – Plumbing, Electrical, Civil and Hardware Materials

35

Rigid Printers

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USB Executive Education – Empowering leaders across Africa and beyond 37 USB Executive Education – Economic development trends – Africa 2050 38-39 USB Executive Education – 5 traits for successful leadership in the digital age 40-41 Kokake – Construction and Projects

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Lec Marketing

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ATM Consulting

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Africa Energy Indaba - Conference and Exhibition

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Deveng Africa Consulting

Izazi Electrical Engineering

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Constructive IT Solutions

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Broadreach – 4IR technology holds key to better healthcare in Africa

Alcohol Breathalysers

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AKAF Bodyguards and Security

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EPICreative Agency

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Invincible Valves Supplying various industries

26-27

46-49

Barry Collier & Co.

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ASPASA

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Upcoming Events

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Open Trade Training Centre - World Skills 1995-2018 56 & IBC


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PROJECT MANAGEMENT


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SA OUTLOOK

Message from the Publisher One need only look at the state of such entities like Eskom along with several loadshedding episodes that we as a nation have experienced during this year to realise that something drastic needs to be done in order to turn our economy around and for real growth to take effect. This along with an extremely high unemployment rate resulting from numerous job losses in the financial sector and industries such as the Saldanha Steel Plant does not bode well for the South African economy. It should not be under-estimated what the ripple effect might be in terms of the impact on other sectors of our economy. And then there is the plight of SAA as its future hangs in the balance. Our economy is in crisis. Our president and govenrment need to sit back and provide real solutions and address these crititical issues to restore growth and investment into our country. Our government needs to establish interventions that support local business across small and medium enterprise as well as stimulate entrepreneurial business startups

through policy and support structures for these businesses that can contribute toward growing and sustaining the South African economy. Regardless of the current state of our economy, SA Outlook will continue to support local industry and sectors and endeavour to keep you informed of changes and trends as they unfold as well as current affairs and in highlighting some of the top players in these industries including events of interest to these sectors. We wish to extend our thanks to our key partners, Institute of Futures Research and Manufacturing Indaba for making this possible. Our aim is to remain a key point of reference for informing you on developments in mining, technology, energy, tourism and education and other key businesses and sectors. SA Outlook’s competitive rates, provides you with a unique platform that will enable you to reach a broad audience with a focus on key distribution points to reach the right audience and future potential clients and seek to expand our distribution to

Publisher: Emile Polman

Dynasty Publishing (PTY) LTD P.O Box 5071 Blue Downs 7105 Tel: +27 (0) 81 029 7247 Email: info@dynastypublishing.co.za Website: www.dynastypublishing.co.za

Finance & Administration Manager: Lynne Polman Business Development Manager: Anthony Botha Production Manager: Tracy White Research & Database Analyst: Sherazaun Johnson Design & Layout: Sonya Collison Printers: Durbanville Commercial & Digital Printers www.dcprinters.co.za

include government, public entities and entrepreneurs, particularly in these industries. We look forward to bringing you the next issue of SA Outlook and thank you for your continued support. Best wishes,

Emile Polman Managing Director Dynasty Publishing (Pty) Ltd

Disclaimer All rights reserved. No part of this publication may be reproduced, in any form or by any means without the Prior written consent of Dynasty Publishing (Pty)Ltd, Reg.No 2018/086878/07. While every care has been taken when compiling this publication, the publisher and contributors accept no responsibility for any consequences arising from any errors or omissions.


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ENERGY

By the book Driving South Africa’s booming gas sector while ensuring a well regulated and responsible environment is a key mandate of Petroleum Agency SA PETROLEUM Agency SA plays an important role in developing South Africa’s gas market by attracting qualified and competent companies to explore for gas in the country, as well as monitoring and regulating their activities. In addition to ensuring operators always comply with the law, a major area of focus is increasing the inclusion of historically disadvantaged South African-owned entities in the upstream industry. South Africa needs large discoveries of indigenous gas as well as fair access to opportunities and social licence to develop a healthy gas market. Currently, natural gas supplies about just 3% of South Africa’s primary energy. A significant challenge facing the development of a major gas market in South Africa is the extreme dominance of coal as a primary energy source, and industry’s historic reliance on coal-generated electricity. A lack of extensive gas transport and reticulation infrastructure goes hand in hand with this, while other challenges include uncertainty about volumes of indigenous gas available to industry; security of supply; switching and conversion costs; gas pricing; and negativity around the ongoing use of fossil fuels. After all, end users require certainty before committing, while explorers look for a guaranteed market. On a more positive note, however, opportunities for gas lie in the realisation of South Africa’s National Development Plan (NDP) and the Integrated Resource Plan (IRP). Both call for indigenous hydrocarbons – conventional and unconventional – and independent power production to play an increasing role in the nation’s energy mix.

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The national power utility also intends to replace coal-fired power stations with gas-fired counterparts, in line with the vision of the NDP. The advent of gas-fired power stations will represent a ready, indigenous market for operators that make discoveries of gas in South Africa, ensuring it will be far easier to monetise smaller discoveries that may otherwise have remained undeveloped. As stated in the NDP, the government’s intention is to ‘enable exploratory drilling to identify economically recoverable coal seam and shale gas reserves, while environmental investigations will continue to ascertain whether sustainable exploitation of these resources is possible. ‘If gas reserves are proven and environmental concerns alleviated, then development of these resources and gas-topower projects should be fasttracked’. The plan also calls for the need to incorporate a greater share of gas in South Africa’s energy mix, through importing liquefied natural gas (LNG); using shale gas if reserves prove commercial; and developing infrastructure for the import of LNG, mainly for power production, over the short to medium term. Meanwhile, the proposed update of the IRP envisages greater prominence of gas in the energy mix, accounting for 16% or 11 930 MW of the installed capacity mix by 2030. An additional 8 100 MW of capacity will be sourced from gas. The IRP calls for a detailed analysis of gas-supply options.

Gas also has the potential and flexibility to be used as a bridging fuel in the move from coal and oil to renewables as primary energy sources. Rapier (2018) reports that this is already the case in the US where, over the past 17 years, coal’s contribution to primary energy has fallen from 51% to 30%, while gas use has doubled. As custodian, Petroleum Agency SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable. Applicants also need to have a good track record in terms of oil and gas exploration activity, as well as regard for the environment. This applies to both local and foreign companies. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record, and must carry insurance for environmental rehabilitation. In addition, all planned activities can only be carried out after completion of an environmental impact assessment and


ENERGY

under an approved environmental management plan, after consultation with the public as well as interested and affected parties. Explorers are also required to contribute to skills development through the agency’s Upstream Training Trust. Oil and gas exploration in South Africa is regulated in terms of the Mineral and Petroleum Resources Development Act (MPRDA) of 2002, which stipulates that applicants for production rights are required to submit social and labour plans (SLPs) to assist in transforming the industry, promoting employment and advancing social and economic welfare in South Africa. Applicants must develop and implement, where applicable, comprehensive SLPs that cover human resources-development programmes, community development, housing and living conditions, and employment equity. In addition to the MPRDA, other acts also regulate the sector – including the National Environmental Management Act, the Royalties Act, the Mining Titles Registration Act and the National Water Act. These acts and regulations have served the upstream industry well and are all in line with international standards. Recently, however, Minister of Mineral Resources Gwede Mantashe and President Cyril Ramaphosa have stated that oil and gas exploration and production activities should have their own standalone legislation, separate from that applicable to hard mineral mining. This legislation is being drafted and the agency is part of the team at the Department of Mineral Resources working on it. Ensuring compliance with the law and mining regulations is another of the agency’s primary responsibilities. Failure by an operator to pay required fees, carry out agreed work programme activities or furnish the agency with the required reporting can lead to the revocation of a permit or right. Contravention of environmental legislation can result in substantial fines or imprisonment.

Under the MPRDA, operators may apply for a technical co-operation permit, which allows a year-long desktop study over the area of interest. After this, or if they are ready to commit immediately to undertaking a work programme, they may apply for an exploration right. This comprises four periods, the first being three years in duration, followed by three periods of two years each. Each period has its own negotiated work programme and relinquishment requirements. On making a discovery, operators may apply for a production right, which lasts for 30 years and can be renewed. The exploration right incurs an annual fee, while production will be subject to royalties at a minimum of 0.5% and a maximum of 5%. Income tax of 28% is also payable. The MPRDA requires state participation at the production stage, while 10% must also be made available on commercial terms for participation by BEE companies. Currently, in preparation for the new legislation, Minister Gwede Mantashe has declared a moratorium on the acceptance of new licence applications and any licensing will be by invitation or during a licence round only. Around 19 applications made prior to the moratorium are under consideration, together with a number of conversions from technical co-operation permits to exploration rights. Earlier this year, a significant gas discovery off the coast of South Africa was made by Total and its exploration partners, Canadian Natural Resources, Qatar Petroleum and Main Street, in a position about 175 km offshore to the south-east of Mossel Bay. The well position is in a water depth of nearly 1 500m, directly in the path of the Agulhas current. The successful drilling of this prospect represents an unprecedented engineering feat. Total has reported the discovery of gas condensate

SA OUTLOOK

with a reservoir net pay thickness of 57m being intersected. ‘It is extremely gratifying that the first well drilled offshore in over a decade by an international oil company has had this very exciting result,’ according to Petroleum Agency SA. ‘The well hasn’t been tested for flow rates, and Total has not released any figures regarding the size of the accumulation. However, as Total states, this discovery opens up a new world-class oil and gas play for South Africa, and there are several other prospects in the area that look very similar to the discovery.’ Total and its partners recently completed the acquisition of a 3D seismic survey over the area that will assist them in further exploration and appraisal. The challenging operating conditions will also play a part in the eventual determination of the commercial viability of development. The recent gas condensate discovery by Total has certainly put South Africa on the map. While there are already many international operators active in South Africa, the results of future licence rounds will provide a good indication of the direct effect.

PO Box 5111, Tygervalley South Africa, 7536 +27 (0)21 938 3500 www.petroleumagencysa.com

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MINING


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SECURITY

AKAF Bodyguards and Security List of Services Training (PSIRA & SASSETA) • National Key Point training • General Security Practices NQF level 3 • hotel security • armed response training • cash in transit training, • CCTV training • Retail security

Guarding services • Access Control • V.I.P Protection • Patrolling, Camera Operators • Control Room Operators • Front Door Greeters • Receptionists • Alarm Monitoring, Video Alarm Monitoring, Total Solution ( Camera/ Integration), • Point of Sale Supervision

Future Artisan training • Plumbing • Brick laying • Electricians • trade tests

Contact details and address Telefax: 014 592 2660 Cell: 083 977 0174 / 0717734408 Email: akaf@webmail.co.za Physical address: 89b Leyds Street Rustenburg, 0300 24


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SA OUTLOOK

INDUSTRIAL

Supplying various industries When we talk about business in

sive range of valves and covers a

Advice to entrepreneurs

Africa, the thing that we visual-

broad spectrum of low pressure

Finally, armed with a five-year

ise first is mining – the backbone

valves and prides itself on excep-

plan, with a new age manage-

of the economy of many African

tional customer service, offering

ment system with family values,

countries. In Africa, it is not only

many ancillary services as in rub-

under the guidance of corporate

the biggest greatest catalyst of

ber lining of pipes, fittings and

governance with a full board

development in multiple nations

valves along with reconditioning

of directors, one non-executive

of the continent, but also an

of valves. Our passion drives our

director and two independent di-

extraordinary source of employ-

on-going innovation of industry

rectors, Invincible Valves are now

ment and global trade exchange.

solutions including manual and

implementing systems and con-

Breaking every odd to bring

automated valves in a variety of

trols which will be able to cope

positive winds of change in min-

packages. We offer a fully opera-

with current business growth

ing, Pam du Plessis, Managing

tional workshop on site for valve

and expansion. They are striv-

Director of Invincible Valves, a

repairs and or reconditioning,

ing for diversification within

well-established company that

along with a fully operational

the business, expanding their

distributes valves of its own as

rubber lining division on valves,

markets, adding additional an-

well as on behalf of the biggest

pipes, fittings and tanks.

cillary services and products range, directed to the mining,

manufacturer in South Africa. What drives this Innovative

petro chemical, power genera-

tion to the industry has helped

Women Entrepreneur?

tion, water, sewerage, gas works

her

awards

Pam gives huge credit to her

and general industries which will

and recognitions including the

father and her three beautiful

enhance customer experience

prestigious

children is what drives her mo-

and business expansion

Women of the Year Award, Mov-

tivation.

throughout Africa and beyond.

ing Mountains 2017, among

achievements and recognition

many other.

from global organisations and

Pam’s

extraordinary earn

numerous 2017

contribu-

Enterprising

Pam’s

extraordinary

her passion drives her to make Innovative Valve Company

an impact in people’s lives

Invincible Valves has almost 4

through the establishment of

decades of rich experience in

a fully equipped Education &

distributing, manufacturing, re-

Training Centre on the compa-

conditioning and rubber lining

ny’s premises to offer courses

valves. Over the years the com-

through SAVAMA along with

pany has introduced its own

ABET training, Basic Business

registered brand of INVAL valves

Skills, Life Skills etc for its staff,

which has led to a comprehen-

interns and local community.

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INDUSTRIAL

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EDUCATION

Phoenix College makes its mark! Founded in 1994, Phoenix College has provided quality education at an affordable cost. Today it is one of the best “low fee independent schools” serving the lower socio economic group of previously disadvantaged learners. It was recently mentioned in “Hidden Assets”, a report by the “Centre for Development and Enterprise” sponsored by the Templeton Foundation in the U.S.A. Phoenix College has made its mark as a valuable and integral part of the community by obtaining many remarkable achievements academically, athletically and recreationally, including obtaining 100% matric pass rate since 2008.

It has also been pointed out at meetings of the Gauteng Education Portfolio Committee held at

The need for Independent Education

the Gauteng legislature that not only do indepen-

Both the Constitution of the Republic of South

what they would have paid to educate a learner

Africa 1996, as well as the South African Schools

in a public school, while costing parents less to

Act 84 of 1996, identified the essential role that

send their children to these schools than to former

independent schools would need to play in order

model ”C” schools, but that independent schools

for the national education strategy to be achieved.

in the province have during the period 2009 to

As it is foreseen that the state would not be able

2017 often achieved a higher average matric pass

to provide the total education needs of the coun-

rate than that achieved by public schools.

dent schools cost the state less than one third of

try at the required level for the foreseeable future, independent schools will continue to play an important role in providing quality education. Many independent schools were started during

The Founding and Development of Phoenix College

the previous dispensation in order to assist with the

Fred Boltman, a retired engineer, used his sav-

education of disadvantaged learners who were not

ings, insurance payouts and pension payout to

catered for at that time. Beyers Naude High School,

found Phoenix College in order to empower the

previously located in Braamfontein, was an exam-

community by supplying quality education at an

ple of an independent school that was established

affordable cost to historically disadvantaged learn-

to respond to this need. When Beyers Naude High

ers from the poorer socio economic classes. The

School closed, the learners were accommodated

Phoenix in Greek mythology was a bird that died

by Phoenix College as a result of a recommenda-

in flames. Out of the ashes, a baby bird was born.

tion by the Gauteng Department of Education.

In 1994, the name Phoenix College was chosen to

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EDUCATION

be symbolic of the new dispensation that was arising out of the ashes. Phoenix College was born.

SA OUTLOOK

The Phoenix College Saturday School providess extra lessons to uplift learners from poorly perform-

Located at Happiness House, the school is con-

ing public schools in outlying districts. Since 1994,

veniently close to rail and taxi services, but the

the total learner base has grown to approximately

building may not be able to accommodate planned

1255 learners. The total full time staff complement

future growth. Phoenix College is engaged with

is 72 while the Saturday School and the Matric Re-

planning a second school for which the land has

write Centre have additional casual teaching staff.

already been purchased.

Phoenix College is fully BEE compliant.

The full time school caters mainly for learners that live in the inner city with some learners from Katlehong, Thokoza, Soweto, Alexandra and a few learners from outside our borders. In about 2006, however, Phoenix College took in 16 refugees from the DRC whose parents had been massacred in the war. They were fed, provided with uniforms and after they passed matric, they were united with family members that were traced overseas. Many of them obtained their degrees in Sweden, Canada,the U.S.A. and other countries.

What makes Phoenix College great! Co-operative and Excellent Management

Unique Educational Offerings

• Presented by the Gauteng Department of Education • Total commitment to Education • The Director has an open door policy

• SETA and other skills training courses in areas such as Entrepreneurship and Project Management • Computer / Mathematics lessons offered to learners from public schools

Caring for children • The “World’s Children’s Prize for the Rights of the Child” awarded to Phoenix College by a Swedish N.G.O. for the part played in re-uniting learners with their families in foreign countries • Numerous positive testimonials from parents • Bursaries awarded to eligible children • Children who cannot get home are cared for

Excellent Education

Technology Oriented School • Offers the subject of Information Technology covering the Delphi programming language

Other Distinguishing Features • Counseling on subject and employment choices to Grade 9 and Grade 12 learners • Zero tolerance for drugs and alcohol • Good discipline

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ECONOMY

The Role of Inclusion in Venture Capital: Future of Alternative Capital, How Devaluing Data is Compromising Economies

averse, but who yielded better financial returns. The results determined that businesses founded by women deliver higher revenue (at that, more than two times as much per dollar invested) than those founded by men. To add to this, the study

A few weeks ago I attended a two-day national

also provided insight of how much more VCs

conference that invited some of the most promi-

could’ve made (an additional $85 million over five

nent women in leadership, business and economic

years) had they invested more money equally into

empowerment in both the private and public sector.

both women and men-founded startups. This is a

The line up included the likes of Economic Advisor

global phenomena, not only unique to the United

to the Republic of South Africa, Trudi Makhaya,

States. The growing equality parity in both entre-

World Champion and Human Rights Activist Caster

preneurship and venture capital translates to men

Semenya and UCT’s incoming chancellor Dr Precious

being more than 92% of the Top 100 venture cap-

Moloi-Motsepe. In bringing together these women

ital firms and as an impact investment correlation,

under the theme of empowering an inclusive and

female-founded businesses are only receiving 2%

empowered economy, the role of investing in wom-

of total investments by these VCs. This underpins

en owned and led businesses quickly became an

the essence of what we’ll unpack soon, of how

emphatic theme. And in this editorial, we’re going

the VC mind works, and later why individuals

to explore not only the role of inclusion in Venture

(both men and women) and organisations had to

Capital (VC), but the consequences of innovation

deal with the consequences of the VCs decisions

and discrimination that has lead to the future of

to devalue and disregard the data.

alternative capital.

But first, let’s bring the ball back to the continent for a moment, and frame not only the

Venture capitalists are devaluing the data

consistency of the return on investment statistics,

It is no secret that the more diverse your team is,

but also the challenges that female entrepreneurs

the more likely that your business is to thrive, and

face in an attempt to acquire or raise capital.

moreover, when that diversity is lead by women.

According to the MasterCard Index of Women

In a study conducted by Mass Challenge and the

Entrepreneurs 2017, sub-Saharan Africa has the

Boston Consulting Group entitled “Why Wom-

world’s highest growing rate of women-owned

en-Owned Startups Are a Better Bet”, over 350

and led businesses at 27%, with Uganda (34.8%)

startups were interviewed and assessed to deter-

and Botswana (34.6%) leading the pack globally.

mine which enterprises were not only more risk

As great and impressive as these statistics are, what

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SA OUTLOOK

compliments this ideal is that while on the surface

powering the economies of the continent to a

more women are entering and playing the field,

greater degree than anywhere else in the world; Sub-

the staying power doesn’t read quite well. The

Saharan Africa is the only region where women

continental region also lists it as the community

make up the majority of self-employed individuals.”

that has the most women-owned startups shut-

Diop affirms what the many studies conducted and

ting down due to little for opportunity for growth

reports released say about not only growing but vis-

and lack of access to capital and resources.

ible rate of entrepreneurial activity by women on

In 2016, Venture Capital for Africa (VC4A) dis-

the continent. He then textures this foundational

closed in their ‘VC4A Venture Finance in Africa’

introduction with a much more granular approach

report, which captured the performance of ear-

in partially answering why this is the case of stum-

ly stage, high impact and growth enteprises from

bling growth in women-owned ventures.

Africa at their crucial stage of early stage investor

“What this fact conceals, however, is that on

activity. Some of the data that is based on data col-

average women-owned firms have fewer employ-

lected from 1866 ventures from 41 African countries

ees, and lower revenues, profits, and productivity.

and 111 Africa-focused investors from 39 countries

In many cases, women’s businesses contribute

around the world unveiled included that only 9%

little beyond basic subsistence. This limits the

of startups have women leaders, and that there is a

potential of women entrepreneurs and further

direct correlation to the success rate of the venture

hinders economic growth and poverty reduction

based on the gender balance of the entity.

in Africa.” he continues.

So why, as revealed in the African Development Bank’s inaugural Africa Investment Forum in 2018 hosted in Johannesburg, South Africa, do women entrepreneurs experience a significant funding gap of US$42 billion annually even though the numbers, time and time again support that they are better yielders of seeded capital? A thought leadership piece in the World Bank blog shared by Makhtar Diop, the World Bank’s former Vice President for the Africa Region and now Vice President for Infrastructure, may help us in shedding some perspective.

Betting on the horse, not the statistics In his opening remarks, “Walk around a major city in Sub-Saharan Africa and you will quickly realize that women are a highly visible part of the economy, selling all manner of products and services. In some ways, women are

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ECONOMY

two ideas that I do want us all to be cognisant of

The innovation consequences of exclusion of access to capital

which one he further explains in the article, is that

It’s happening, too slowly but surely. This gender

the patriarchal systems which are still in place for

investment gap has actualised innovative solutions

African women across the border of the continent.

and some, even going back to the basics of group

Women do not, and lack the access to the collat-

economics to ensure that more entities owned by

eral that is required to enable them to access the

women are funded and grow to the scale of po-

credit capital, like land and property, these policies

tential that they truly deserve. Let’s unpack some

and framework are things that need to change so

of these solutions:

Is he incorrect in his statement? No. However,

that women can start or develop their businesses. The other big elephant in the inclusion con-

• Using metrics like partnerships, capital invest-

versation of venture capital that is widening the

ments, total number of companies invested in

investment gap, is that of not only who carries the

and the social and financial return on invest-

capital, but why and how that capital distribution

ment, Billion Dollar Fund for Women (TBDF) is

always ends up circulating amongst the same racial

committed to ensuring that its holding venture

and gender recipients, call it intentional super in-

companies to investing in more women-found-

clusive circular and shared value economies of and

ed companies. Implementing a self-funded,

that scale. In as much as VCs look at outliers and

non-profit model, TBDF is a global consor-

the business and investment cases of startups, it is

tium of venture funds that have committed to

no secret that they also bet on horses that mirror

date (November 2018) $650 million to tack-

them. Men (whom we unpacked earlier comprise

le the gender investment gap by pledging to

of 92% of the Top 100 VC firms) are much more

increase their investments capital pools to

likely to invest in men-owned businesses than

women-owned companies, globally. The lobby-

female ones, and according to a study led by Bab-

ist approach has garnered some success stories

son College’s Entrepreneurship chair Dr. Candida

like Rethink Impact, with continued increased

Brush, it found that startups lead and managed

investment in businesses founded by women.

by all-male teams were “four times more likely to receive funding than companies with even one

• Group economics is an ancient economic prac-

woman leader.”, even with the shocking discovery

tice that’s now positioned itself as one of the

that gender diversity at the top improves a start-

most pivotal ways in which to raise capital, for

up’s performance.

pre-seed and early stage investment business-

If VCs are such risk takers, why not take the biggest risk of them all, women?

es. Entities like The People’s Fund, UpriseAfrica, iFundWomen and Portfolia are some of the companies who are doing exciting things in the space of impact investing and creating not only diversity of opportunities for minorities, but also enabling entrepreneurs to tap into capital they wouldn’t otherwise have access to.

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• The rise of the gender gap also gave rise to

a 45 minute psychometric test that provides a

women-owned venture capital firms and

reliable indication of whether an entrepreneur

venture networks who are intentional about

and whether you will be able to repay a loan

investing in women owned businesses. Africa

without any collateral required. At present, the

has provided great case studies and momen-

repayment rate is at 99.4%. Another example

tum to this with venture companies like Dazzle

of how being technology and future adjacent

Angels, and Rising Tide Africa which is a group

has served the venture capital and investment

of women angel investors that are harnessing

ecosystem is through the constant data science

their power, network, passion and capital to

application and introduction of technologies

positively impact and invest in an empowered

like machine learning and artificial intelligence

and inclusive growing economy, and society.

to aid with decision making, and also democratising who can become an investor. The funds

• Startups and organisations have now had to

in magnitude still lie with the wealthy to invest

become technology adjacent in understanding

in “lesser risk averse male-owned entities”, but

their customers, business model and partic-

the opportunities to value the data and tap into

ularly financial services company, HOW they

the industry with impact investing and seeding

deploy capital. In his book Tech Adjacent, serial

the billion dollar potential of the global econo-

technology entrepreneur and thought leader,

my is fair game.

Mushambi Mutuma engages on doing business in the future and the importance of constant-

With all the data on the table supporting why in-

ly evolving with the exponential technology

clusion, and particularly why investing in women

and innovation that’s also growing quite expo-

owned businesses is important for the current and

nentially in business. “What would make you

future of the economy, and AfDP’s President Akin-

absolete in a day? What technology are you

wumi Adesina’s call for increased support to for

terrified your competitors will figure out? How

women to be active stakeholders in the economy,

would we run this company with 10 percent of

why are we constantly accelerating towards the

our current staff? How would you monetise if

opposite direction when it’s time to seed the cap-

consumers expected you products/services to be

ital? The answer may not be as complex as we

free?”. These questions are some of what, I be-

may make it to turn out, however we can applaud

lieve, have influenced how capital and credit is

the innovative strides being taken to drive inclusiv-

becoming more inclusive for women to be able

ity and capital returns on these investments. The

to bypass the archaic banking structures and

future of venture capital and investments is de-

enable them to get their food in the door. The

mocratized, technology and data science adjacent

Women’s Entrepreneurship Development Proj-

and inclusive of breaking down archaic, exclusive

ect has contributed to the rise of female-owned

and oppressive systems to ensure that we build in-

businesses in Ethiopia by providing women with

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33


SA OUTLOOK

ENGINEERING

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MINING

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SA OUTLOOK

ECONOMY

Economic development trends – Africa 2050 By the year 2050, Africa’s population is projected

He stresses that Africa is far from one homoge-

to double with more than a quarter of the world

neous landmass. “This is a continent made up of

being African. This will be accompanied by huge

55 extremely distinct countries. So, we shouldn’t

economic development trends for the continent

forecast the fate of Africa. Rather we need to look

which leaders need to prepare for:

at each country individually.” However, some gen-

• Increase in urban dwellers

eralised forecasts are possible.

• Rising youth population in Africa

Here Roux (AR) paints his picture of Africa 2050:

• Continental education makeover • Increase in Africans using internet

Increase in urban dwellers

• Less dependence on mining and agriculture

1.2-billion Africans could be living in cities. Cur-

• Increase in emerging leaders

rently there is 400-million urban dwellers (June 2019). 800-million more people will move to the

2050 sounds like a long way off. But it is just 31

cities in the next three decades. The implications

years away. And in that time, Africa’s population

in terms of infrastructure, employment, social

is projected to double. We currently account for

welfare and housing are immense. Likewise, food

16% of the world’s population; by 2050, a quarter

security with a shrinking rural population will need

of the world will be African. Professor André Roux,

to be in the spotlight.

economist, USB-ED faculty member and the head of USB-ED’s post-graduate programme in Future

Rising youth population in Africa

Studies says, “If we’re 25% of the world’s popula-

40% of the world’s under-18s will live in Africa.

tion, we’re 25% of its consumers. 1 in 4 consumers

Our population is big, growing and young. It has

on the planet will be in Africa. The implications of

the potential to be our greatest asset. However, all

that are huge.” How will this impact the continent’s

the potential benefits of a young population can

economic development? Time will tell…

only materialise if our population is appropriately

What will the Africa of 2050 look like? Roux says no one can make predictions, but we can make forecasts by foreseeing a few potential outcomes. He believes there will be two major

schooled, and skilled for the challenges of the 4th Industrial Revolution.

More middle-income consumers

game-changers for countries:

Linked to this, we’ll see more and more people

• The ability to diversify and add value.

(but unfortunately by no means the majority) es-

• The ability to establish and maintain good

cape poverty. This will create more middle-income

governance, accountability and a rule of law.

consumers to drive economic growth, activity and

Leadership development will be essential.

development.

38


ECONOMY

Continental education makeover

SA OUTLOOK

Increase in emerging leaders

Hopefully, we will have found a way to align our

The enormous leadership potential of Africa’s

education quality to the rest of the world. There

young people will, hopefully, have been unlocked

are all kinds of reasons why education in Africa is

by 2050. We will have invested in grooming leader-

lagging behind. If this doesn’t change, we won’t

ship qualities in young people so they become the

be able to enjoy the benefits of our demographic

leaders Africa needs. Currently, more and more of

dividend*. Industry 4.0 (the Fourth Revolution/ I4)

a younger generation of leaders are coming into

calls for cognitive skills. This poses a big challenge,

power in Africa, with no real first-hand knowledge

calling for a major makeover of the continental

of the post-independence eras of these countries.

education system. Technological, scientific and

These leaders are possibly better versed in democ-

managerial skills will be required – but most of

racy; better versed in what it means to be more

the continent currently doesn’t focus on instilling

economically competitive. This is driven partly by

these skills.

the demands of a middle-income youth who want

Increase in Africans using internet

middle-income aspirations. “There’s no one-size-fits all forecast for the fu-

By 2030. Africa will have 16% of the world’s in-

ture of Africa’s economy,” says Roux, “But I think

ternet users (source: Euromonitor International).

the message is one of guarded optimism. Given our

By 2050? A lot more we can assume. Information

youthfulness, the demographic dividend will still be

technologies and the internet are already changing

around by 2050 and beyond. This means we still

the lives of millions of Africans in terms of access-

have a couple of decades to prepare ourselves. The

ing education and mobile money. This bodes well

risk is if we don’t ensure young people are prop-

for our continental education makeover.

erly skilled and educated then they will be stuck in

Less dependence on mining and agriculture

unemployment and poverty; they’d have nothing to lose by taking take to the streets and rebelling. That’s the worst case if we don’t get it right.” All in all, I think the Africa of 2050 will be in a

By 2050, African countries will need to have

better place than the Africa of 2019, which is in a

transformed their economies to become far less

better place than the Africa of 1990.”

dependent on mining and agriculture. Currently, most countries specialise in one or two natural resources – these form the backbone

* The United Nations defines a demo-

of their economies. But they extract the raw forms

graphic dividend as, “the economic

and sell these on to someone else. In this way, in

growth potential that can result from

a sense we export our wealth. We’re overdepen-

shifts in a population’s age structure,

dent on resources and prices are determined by

mainly when the share of the working-

a global force. We need to add value ourselves.

age population is larger than the non-

That means using what we’ve got, not reinventing

working-age share of the population”.

the wheel.

39


SA OUTLOOK

BUSINESS

5 traits for successful leadership in the digital age

Top soft skills for leaders in 2019 In 2018, the buzzword for businesses was

To navigate the complexities of a time when

very much agility. This year, agility remains

LinkedIn’s top three ‘hard skills’ are cloud comput-

key but there’s also greater recognition of

ing, artificial intelligence and analytical reasoning,

the three Cs: creativity, collaboration and

leaders need to build on a transformational lead-

communication. With rapid change being

ership style that nurtures the continuous learning

the new norm, it’s imperative that leaders

of soft skills. Collaboration especially, is a ‘top soft

define a guiding ‘north star’ (overarching

skill’ for 2019. Creativity and persuasion also top

purpose), with input and buy-in from their

the list. With digital technology, globalisation and

teams and an emphasis on cross-organ-

innovation making big business impacts, teams

isational cohesion that breaks down the

are having to adopt an iterative approach that al-

traditional ‘silo’ approach and brings in

lows for ‘fast failure’ in order to generate quick

digital leadership.

solves. The key to this? Creativity, plus the ability to problem solve.

40


BUSINESS

SA OUTLOOK

Top traits for leaders in Industry 4.0: With all this in mind, here are our predictions for the top five leadership qualities you need to be an exceptional business leader in our digital age: 1. Be ‘Human’: This is Forbes’ biggest lesson

4. Be creative: This is LinkedIn’s top skill for 2019

for leaders in 2019. Leadership has changed

and it’s also the third most in-demand skill in

and now the emphasis is firmly on nurturing a

the World Economic Forum’s Future of Jobs

‘culture of inclusivity and cooperation’. How

report. As a leader, you need to get creative

to do that? By being human in your approach.

with your design thinking, people- and change

Listen to your team members; know what’s

management, scenario planning and future

happening in their personal and professional

forecasting. But you also don’t need to do this

lives; be empathetic, supportive and insight-

on your own. A big part of leadership is recog-

ful; and, most importantly, affirm individuals

nising and encouraging the creativity in others.

through continuous encouragement. Being

To do so, you have to create a space where

human also means owning up to errors and

people feel safe sharing their ideas.

avoiding laying blame. 5. Be a bastion of morality: With corruption 2. Be self-aware: To manage people effectively,

scandals rampant around the world, ethical

it’s imperative that you understand what effects

businesses are highly prized. Consumers are

your moods, attitudes and drives have on oth-

looking to brands to be bastions of morality

ers. Self-awareness allows you to master your

and to make a sustained positive difference to

moods and project the best, most confident

the communities they operate in. As a lead-

version of yourself to your team. The better

er, you need to lead this, which means being

you connect with yourself, the more effectively

spotless in your own ethics and championing

you’ll connect with others.

causes you care about.

3. Collaborate, collaborate, collaborate: Gone are the days of silos, with each team member

Make 2019 the year you take your

or department working in isolation. Now, it’s all

leadership to the next level.

about cross-departmental collaboration with all

We offer a vast range of leadership and

players cooperating cohesively. As a leader, you

executive development courses that’ll

need to kick-start this by actively coordinating

help you master the traits that’ll hone

the business so that there’s interaction between

your leadership in the digital age.

all team members. Another big part of this is ensuring everyone feels comfortable partici-

Find out more at USB-ED.com.

pating. Again, this comes back to creating an inclusive culture that encourages different perceptions through transformational leadership.

41


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SA OUTLOOK

HEALTHCARE

4IR technology holds key to better healthcare in Africa gramme using Vantage technology, a record 5.5 million people were tested for HIV between 2012 and 2018. Of these 530 000 were taking anti-retroviral therapy and a healthy 93% were virally The rapidly rising population in Africa and the

suppressed.

lack of appropriate resources are just some of

The programme is on track to meet the UNAIDS

the challenges obstructing the delivery of quality

90-90-90 goals for bringing HIV under control.

healthcare on the continent.

This vision aims to ensure that 90% of people liv-

Governments and legacy healthcare systems are

ing with HIV know their status, 90% of those who

struggling to address basic healthcare needs in

test positive receive treatment, and 90% of those

the face of increasing levels of disease and health

on treatment remain virally suppressed.

problems as the population, now at 1.32 billion, continues to grow. The only way to effectively manage the healthcare needs for this expanding population is to renew our focus on the social determinant of poor health-

Vantage technology, through implementing part-

care, and institute “much more aggressive and

ner BroadReach Consulting, is able to integrate

proactive healthcare management programmes,”

data immediately from a large range of sources

says Dr Ernest Darkoh, health systems expert and

− ranging from population and health service data

co-CEO of BroadReach Consulting.

to information about the weather − to analyse

Technology holds the solution for maximising

service delivery. It then makes recommendations

scarce resources to ensure both disease prevention

for step-by-step action, directing staff to take the

and more effective healthcare, he says. This work

right action at the right time, rather than make

is already underway. Fourth Industrial Revolution

decisions based on gut instinct, habit or anecdotal

technology, called Vantage, is being used to dra-

evidence.

matically boost public healthcare in underserved

Used together with human expertise in strength-

regions of Africa including parts of KwaZulu-Na-

ening and supporting health systems, it enables

tal (KZN), South Africa, where it is making great

people at every level to be better at their jobs. The

strides in tackling the HIV epidemic.

greatest healthcare challenges, in the populations

South Africa has the highest HIV-prevalence in

and areas of the greatest need, can be identified

the world, and KwaZulu-Natal is the epicenter of

and quickly addressed. Gaps in healthcare provi-

the epidemic. In a KZN Department of Health pro-

sion can be accurately pinpointed and solutions

46


HEALTHCARE

Threat

SA OUTLOOK

immediately recommended, mostly in real-time.

ease

solutions

“Individual healthcare workers can be provided

are currently in develop-

with an app showing when targets are missed and

ment in partnership with

intervention is required,” says Darkoh. “Managers

the West African Health

are able to monitor and oversee from one place

Authority

the performance of thousands of field staff, and

help coordinate regional

the health authorities can access an overall view

infections disease man-

of the programme.

agement across their 15

This technology is also being used in a US-

member states.

AID-funded programme called Regional Access

“Technology for technolo-

through Data (RAD), which looks at innovative

gy’s sake is useless. What

ways to improve access to healthcare across bor-

is exciting is that, in the

ders in West and East Africa. The work includes

right hands, it can unlock

a pilot programme on cross-border immunisations

productivity and inspire the action that can change

in East Africa, and on how children’s health could

lives,” notes Darkoh. “This is a solutions-oriented

be better managed across borders, in partnership

rather than crisis-driven approach, directing the

with the Inter-Governmental Authority on Devel-

path towards a more efficient use of the already

opment (IGAD).

scarce resources and budgets and will provide bet-

Technology could also be deployed to identify

ter healthcare management - and better outcomes

and control the threat of cross-border outbreaks

where these are most needed.”

(WAHO),

to

of diseases such as Ebola. The Cross-Border Dis-

47


SA OUTLOOK

HEALTHCARE

CASE STUDY The Ugu district of KwaZulu-Natal has a higher

to help them make optimal and timeous decisions

HIV prevalence among pregnant women than any

and improve the impact of their work. They were

other district in South Africa, with 41% HIV-posi-

also able to instantly call up and share data with

tive. In this district, use of the technology enabled

local managers and clinicians about HIV testing,

healthcare workers to ensure that HIV-suppression

enrolment in anti-retroviral therapy programmes,

rates among those taking anti-retroviral therapy

and viral load suppression. Previously, district health managers were over-

increased from 57% to 81%. The rate of those completing viral load tests,

whelmed with data management, and rarely had

which determine the concentration of HIV in their

the information necessary for effective “Mon-

blood, jumped from 32% to 92%, and HIV-sup-

day morning� decision-making. Data was spread

pression rates increased from 57% to 81%.

An

across disparate, siloed systems, and as a result

analysis using Vantage technology revealed that

staff lacked an on-demand, synthesised view of

only 10 of the 42 facilities accounted for 80% of

the most pressing problems and how to fix them.

the performance gap. Based on this insight, facility

Instead, most managers retained external consul-

management was able to re-focus its resources on

tants to draw data-driven insights and plans of

the high impact facilities.

action, which took two to three months to com-

When Vantage was implemented, nurses and

plete. Drawing up reports was an arduous and

other health workers on the frontline of the ep-

time-consuming process that was inadequate to

idemic were able to access it from their tablets,

identify trends.

48


HEALTHCARE

SA OUTLOOK

BroadReach Consulting is a certified implementing partner of Vantage Technologies.

The company works with various partners in many African countries, including the PEPFAR-funded grant for USAIDS’s five-year epidemic control program in South Africa, called APACE (Accelerating Program Achievements to Control the Epidemic). BroadReach Consulting’s headquarters are in Cape Town, South Africa. Vantage Technologies, registered in Switzerland in 2010, is a software

Dr. Ernest Darkoh, BroadReach Co-Founder and Co-CEO/Country Director, PEPFAR South Africa

development company that leverages big data to help strengthen healthcare systems in emerging

Dr Ernest Darkoh is an internationally re-

economies.

nowned expert in strategic planning, systems and large-scale public health program management and implementation. He is passionate about using new cutting- edge technologies that radically improve healthcare delivery and ignite improved development sector outcomes.

Issued and prepared by:

Ernest has worked with governments, interna-

Paula Wilson, Media Consulting for BroadReach.

tional normative organizations and the private

For media queries contact Paula Wilson on

sector across Africa, Asia, the Caribbean, and

paula@pwmc.co.za

North America. He currently oversees Broad-

+27 21 789 1904 or

Reach’s extensive health systems strengthening

+ 27 82 659 9187

efforts in South Africa as part of the USAID

www.pwmc.co.za

PEPFAR program.

It starts with data, but it ends with tools that empower action and change lives. 49


SA OUTLOOK

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SA OUTLOOK

ADVERTISERS

We wish to thank all of our advertisers for your valuable contribution and for making this publication a success.

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DAC

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52


RATE CARD & DEMOGRAPHICS SA Outlook is a quarterly magazine which focuses on the current affairs and events within the South African arena. Our publication is aimed at government leaders, thought leaders, SA business society, SMME’s and State owned enterprises. We deliver thought provoking material to the masses on our state of affairs within South Africa. The magazine is a source of information from Finance in business to Education. SA Outlook is not just any magazine. It provides a platform for dialogue between businesses and communities. SA Outlook offers a great platform to bring brand awareness through our advertising opportunities as it is a Business to Business platform for shared knowledge, industry and resource. SA Outlook serves its audience in the following areas: • CURRENT AFFAIRS • FINANCE & BUSINESS DEVELOPMENT • EDUCATION • TRAVEL & TOURISM • TRADE & INVESTMENT

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SA OUTLOOK

EVENTS

Upcoming events Marketing Indaba 2020

6 – 7 May 2020 | Cape Town 20 – 21 May 2020 | Johannesburg

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11 – 12 March 2020

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30 September – 2 October 2020 Cape Town

PowerGen Africa

12 – 14 May 2020

CTICC | Cape Town

For more information, visit the website for the event you are interested in attending.

6th Annual Top Empowerment Conference

15 – 16 April 2020 Emporers Palace | Johannesburg

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29 July – 1 August 2020 Johannesburg Expo Centre

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7 – 11 September 2020 Johannesburg Expo Centre at NASREC

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3 - 4 March 2020 Cape Town International Convention Centre


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