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inspire trade • investment • tourism

brics Development Bank – Filling

South Africa

a gaping hole in the global development affairs!

kzn tourism Contributing immensely to the country’s GDP

design indaba South African designs, a force for change within the country

afcon

2013

issue 1/2013

S.A. always ready to be counted when duty calls


contents

Editor’s note

4

9

South Africa walks into a golden city made of BRICS

12

Filling a huge gap in global development finance

16

The ‘S’ in BRICS

18

Investment opportunities galore in KwaZulu Natal

22

Sun, surf and plenty to do: KZN tourism leads the way

26

Robert More: Inspired, determined and visionary

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Inspire South Africa Issue 1


DENEL – DEFENCE AND TECHNOLOGY PARTNER-OF-CHOICE FOR BRICS COMPANIES Denel’s growing reputation in the global defence industry positions itself as South Africa’s obvious partner-of-choice for BRICS companies who are extending their business into Africa. With a proven record for quality products and services across the spectrum of defence manufacturing – from landward, to aerospace, to missile technology, to maintenance services – Denel offers advanced facilities, a world-class skills pool and an unflinching commitment to excellence, innovation, research and development. “Denel is excited about the many opportunities for new business and cooperation flowing from South Africa’s role within the BRICS community,” says the Group Chief Executive, Riaz Saloojee. “We already have established joint ventures with key defence industry players in the BRICS countries and I am convinced that the Durban Summit will provide even greater exposure of the products we manufacture and the services we provide.” Denel Dynamics, a division within the stateowned company is working with Brazil on the development of the A-Darter, a short-range airto-air missile; Denel Aviation has a relationship with Russian Helicopters to provide maintenance, repair and overhaul services to its range of products in Africa; and Denel Aerostructures is involved in talks with Embraer SA to manufacture parts on future aircraft construction. The cooperation between Denel Dynamics and Brazil has resulted in the development of the 5th generation A-Darter missile able to manoeuvre at very high G-forces with lock-on after launch capability.

The A-Darter, which will be produced in both South Africa and Brazil, has already completed extensive testing including guided launches at the Denel Overberg Test Range on the southern tip of Africa. The Africa Aerospace and Defence Exhibition (AAD) in September 2012 provided the backdrop for the signing of an agreement between Denel and Russian Helicopters. In terms of this, Denel Aviation will, in future, be responsible for maintenance and repair services on helicopters produced by Russian Helicopters on the African continent. “We are delighted to have relations with one of the world’s leading manufacturers of rotary wing aircraft and are looking forward to extend this relationship in the future,” says Mr Saloojee. With Russian Helicopters expanding its presence in Africa Denel Aviation provides a world-class facility and highly-skilled engineering and technical base to support its products. Denel Aerostructures (DAe) recently visited Brazil as part of a South African trade mission to its BRICS partner. The visit included meetings with senior executives of Embraer who were briefed about the company’s unique capabilities in the design, industrialisation and manufacturing of complex composite and metallic aircraft structures. Mr Saloojee says Denel’s strategic location in Africa makes it an ideal partner for companies in the BRICS group looking to expand their business in the defence and high-technology arenas. “This is the experience, the capacity and the quality of service that Denel now also offers to companies in the BRICS group,” says Mr Saloojee.


Publisher: All Media Africa International The Avenues Office Park Media House,unit 3b2/3b1 1 Village Walk, Parklands Cape Town, 7441 Tel: +27 21Â 801 7111 Website: www.amafrica.net

contents

All MediA Afr icA international EDITOR Grivin Ngongula editor@amafrica.net COPY EDITOR Pam Makati pm_makati@gmail.com CONTRIBUTORS Sibonelelo Radebe, Janine Stephens, Jabulile Ngwenya, Yolande Stander, Gaye Crossley, Cara Bouwer, Stefan Lotter, Jonathan Harvey. art direction Stacey Storbeck Nel indiodesign@mweb.co.za Sales Director Julian Moffat julian@amafrica.net

Mapungubwe: At the forefront of cultural tourism in South Africa.

38

Homegrown style for sale

42

South Africa’s rollercoaster agriculture sector

48

S.A. to Speed Up Land Reform

54

Export focus

57

S.A. endurance sports love affair

58

Afcon positives

63

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Inspire South Africa Issue 1

Advertising Sales: Theo Jacobs, Malcolm Solomon, Progress Mpala, Roseleen Tapera Managing Director Graeme Mather graeme@amafrica.net Operations Director Brennen Wareley brennen@amafrica.net associate publisher Mark Poonan DISCLAIMER: INSPIRE SOUTH AFRICA is published by ALL MEDIA AFRICA INTERNATIONAL. All work published herein is protected by copyright. No part, editorial or images may be reproduced or adapted in whatever format without the express permission of the publishers and / or their contributors. Information and opinions expressed and published in INSPIRE SOUTH AFRICA, do not necessarily express opinions of this magazine. The magazine, publisher or editor cannot be held liable for damages of any nature, directly or indirectly from any facts or information that has been provided or omitted in these pages. The same applies to any statements made or withheld by this magazine.


Financing

Africas ’ future

ANOTHER AWARD WINNING INFRASTRUCTURE PROJECT PUT TOGETHER BY A TEAM THAT IS VERY PASSIONATE ABOUT AFRICA!

iww | 1979 | cp

Harith General Partners congratulates SOCOPRIM for winning the Deal of the Year Award from the prestigious and authoritative Project Finance Magazine.

Harith together with Bouygues Construction is proud to form part of a concession to build and operate the EUR 282 million Henri Konan Bédié Bridge in Abidjan, Côte d’Ivoire. This award winning Public Private Partnership will empower the residents of Abijan and stimulate their economy, bringing regional prosperity and development. Another proud moment in African infrastructure development financing.

No. 1 Chislehurston, 33 Impala Road, Chislehurston, Sandton, 2196 South Africa | Pule Molebeledi +27 11 384 4000 Tunisia | Souleymane Keita +27 76 455 9197 Ghana | Ernest Nyarko +27 73 039 4361 | info@harith.co.za | www.harith.co.za Harith is an Authorised Financial Services Provider | Registration no. 31473

Structuring Today Strengthening Tomorrow


DENEL – DEFENCE AND TECHNOLOGY PARTNER-OF-CHOICE FOR BRICS COMPANIES Denel’s growing reputation in the global defence industry positions itself as South Africa’s obvious partner-of-choice for BRICS companies who are extending their business into Africa. With a proven record for quality products and services across the spectrum of defence manufacturing – from landward, to aerospace, to missile technology, to maintenance services – Denel offers advanced facilities, a world-class skills pool and an unflinching commitment to excellence, innovation, research and development. “Denel is excited about the many opportunities for new business and cooperation flowing from South Africa’s role within the BRICS community,” says the Group Chief Executive, Riaz Saloojee. “We already have established joint ventures with key defence industry players in the BRICS countries and I am convinced that the Durban Summit will provide even greater exposure of the products we manufacture and the services we provide.” Denel Dynamics, a division within the stateowned company is working with Brazil on the development of the A-Darter, a short-range airto-air missile; Denel Aviation has a relationship with Russian Helicopters to provide maintenance, repair and overhaul services to its range of products in Africa; and Denel Aerostructures is involved in talks with Embraer SA to manufacture parts on future aircraft construction. The cooperation between Denel Dynamics and Brazil has resulted in the development of the 5th generation A-Darter missile able to manoeuvre at very high G-forces with lock-on after launch capability.

The A-Darter, which will be produced in both South Africa and Brazil, has already completed extensive testing including guided launches at the Denel Overberg Test Range on the southern tip of Africa. The Africa Aerospace and Defence Exhibition (AAD) in September 2012 provided the backdrop for the signing of an agreement between Denel and Russian Helicopters. In terms of this, Denel Aviation will, in future, be responsible for maintenance and repair services on helicopters produced by Russian Helicopters on the African continent. “We are delighted to have relations with one of the world’s leading manufacturers of rotary wing aircraft and are looking forward to extend this relationship in the future,” says Mr Saloojee. With Russian Helicopters expanding its presence in Africa Denel Aviation provides a world-class facility and highly-skilled engineering and technical base to support its products. Denel Aerostructures (DAe) recently visited Brazil as part of a South African trade mission to its BRICS partner. The visit included meetings with senior executives of Embraer who were briefed about the company’s unique capabilities in the design, industrialisation and manufacturing of complex composite and metallic aircraft structures. Mr Saloojee says Denel’s strategic location in Africa makes it an ideal partner for companies in the BRICS group looking to expand their business in the defence and high-technology arenas. “This is the experience, the capacity and the quality of service that Denel now also offers to companies in the BRICS group,” says Mr Saloojee.


from the editor

i

n December 2012, politician and business man Cyril Ramaphosa was elected Deputy President of South Africa’s African National Congress at the party’s elective conference in Mangaung, South Africa. In 2013, South Africa hosted the continental football competition —the Africa Cup of Nations (AFCON). South Africa was selected host after Libya had withdrawn because of the Arab Spring uprisings that swept through the northern parts of Africa. Also in 2013, South Africa won the bid to operate together with Australia, The Square Kilometre Array (SKA), which ‘will be a radio telescope — instead of seeing light waves, it will make pictures from radio waves.’ In actual fact, South Africa has hosted and is still hosting many events. INSPIRE SOUTH AFRICA explores inspiring facts about South Africa. Events such as the Brics conference in March 2013 or the travel and tourism showcase Indaba in May 2013 in KwaZulu-Natal are indicative of the good things happening in South Africa. The upcoming editions of INSPIRE SOUTH AFRICA are jam-packed with features promoting trade and investment opportunities in South Africa. Send us emails, call us or use any of the media platforms and become our partners as we showcase inspiring moments from your province. Until next time, stay inspired.

Grivin

Inspire South Africa Issue 1

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BRICS summit

South Africa walks into a golden city made of

BRICS ‘The grouping has grown into much more than just an economic/ financial forum and has evolved further into a fully-fledged diplomatic cooperation initiative.’ By Sibonelo Radebe

‘A

decade ago trade with the BRICS economies accounted for a mere 5% of South Africa’s total trade with the world. In 2012, this figure stood at 19%.’ It has been two years since South Africa joined a bloc of nation states who are organised under the banner of advancing the course of emerging economies within the global order. One wonders and asks the following questions: What is in store for South Africa in this formation? Is it just a simple talk shop as many are suggesting? It is two weeks before South Africa is to host the fifth BRICS summit. Already, the buzz caused by the turning of billions of eyeballs towards the southern tip of the African continent has been gathering momentum. You can feel the buzz through the ranking of the acronym BRICS within the Google algorithms. Headlines carrying BRICS are popping up within Google News Top Stories with remarkable regularity. This says something scientific about the interest of information users on the world-wide-web. Such interest should not be surprising because the BRICS movement promises to shake the organisation of world politics. BRICS does pass as one of the most watched global developments in the post cold war era. This goes into displaying the residual value available to South Africa inside the BRICS formation. The numbers behind this bloc are mind boggling. Jointly, Brazil, Russia, India, China and South Africa (BRICS)

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command about 25% of global GDP, 16% of global trade and 40% of the world population. They also account for almost a quarter of the world’s land area and about 30% of the world’s economic growth registered in the past 10 years. These numbers are forecasted to be radically different on the upside by 2050 which will surely change the face of world politics. To be in the driving seat of such a movement must be the envy of every emerging economy. However, there are questions about the cohesion of this four-year-old political movement. There are serious challenges arising from the increasing multipolarity of world politics, says Memory Dube an economic diplomacy expert at the South African Institution of International Affairs (SAIIA). This is to say lines of political solidarity in the post cold war era can never be as cogent as they were before the fall of the Berlin Wall. Dube and many other analysts also highlight the contradictions within the BRICS member states as a challenge. Standard Bank economic analysts, Simon Freemantle and Jeremy Stevens, note that ‘despite best intentions the group is diverse and has struggled to carve out a collective agenda.’ Thus, the interest around BRICS continues to grow. In 2011, an American magazine, Foreign Policy, ranked the BRICS phenomena, albeit attached to the particular rise of China, top of the list of 10 major global events. As such, the week beginning on 24 March 2013 will set the world’s attention towards South Africa, one that rivals the gaze enjoyed by the

Inspire South Africa Issue 1


brics summit

country when it hosted the 2010 FIFA World Cup. This is the week that South Africa is scheduled to host the fifth BRICS summit. Hordes of journalists from all four corners of the globe were set to descend into the country. Although the event is smaller in quantitative terms, it can be argued that in qualitative terms it does want to rival the FIFA spectacular especially considering the recurring nature of its rhythms. It was more or less the same highlight in 2011 when South Africa attended its first BRICS summit in Sanya, China, and last year in New Delhi, India. These BRICS annual theatrics look set to be sustained for many years to come. In between them, stand supplementary gatherings, like BRICS finance ministers meetings, BRICS caucuses around G20 meeting etc. It all adds up to a sustained rhythm of political action, or ‘political theatrics’, where member countries enjoy unparalleled global attention.

There in, lies the residual value of the BRICS formation. It fulfills a critical national interest, an ambition by South Africa to assume a prime spot in the global stage. The stage is set. But then, there is more to BRICS than mere political theatrics. Of course a lot that goes into the BRICS rhythm is yet to be fully understood, a point well made by respected scholar Francis Kornegay. He states that… ‘it is critical that intellectuals as well as governing elites of the five countries really make an effort to get to know one another in more depth, where we are all respectively coming from — and really get a handle on what BRICS is all about apart from, as seems to be suggested, simply a collectivity of national interests converging on reforming global governance generally, global economic governance in particular.’ Maite Nkoane-Mashabane, South Africa’s Minister of International Relations, says ‘The grouping has grown into much more than just an economic/ financial forum and has evolved further into a fully-fledged diplomatic cooperation initiative. This includes cooperation on the political, economic, financial and various sectorial levels as embodied in the Delhi Declaration and Action Plan.’ BRICS is turning out to be more of an inward looking movement than a simple voice of protest. This will have some resonance to many South Africans who know their way around the struggle against apartheid and in particular the Black Consciousness Movement chapter. This chapter displayed the importance of the self in a subversive paradigm and warned against the pitfalls of an overly protest-oriented struggle. While noting and critiquing the persistence of inequality within the global order, the BRICS formation seems to be geared more towards proactive approach in addressing global inequalities. BRICS comes with a clear subversive movement which fights the portrayal of emerging economies as charity seeking and helpless beggars. Declarations taken during the 2012 BRICS

Inspire South Africa Issue 1

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brics summit

Armaments Corporation of South Africa SOC Ltd

T

he Armaments Corporation of South Africa SOC Ltd (ARMSCOR) is a state owned entity, established in terms of the Armscor Act, Act 51 0f 2003, with the main objectives of meeting the defence matériel requirements of the Department of Defence and to provide for the defence technology, research, development, analysis and test and evaluation requirements of the Department of Defence. The Minister of Defence and Military Veterans is the executive authority responsible for ARMSCOR. In the execution of its functions, ARMSCOR maintains capabilities and technologies that are required to fulfil its mandate, such as appropriate acquisition management, Defence Industrial Participation (DIP), and the management of technology projects and strategic facilities. ARMSCOR acquires defence materiel for the Department of Defence and, with the approval of the Minister, for any other organ of State. The acquisition role of Armscor pertains to all actions that need to be taken to satisfy the need for materiel, facilities or services intended for client use or in support of clients requirements, including: •

long - term operational research and requirements planning

establishment and development of technology

design and development of products and systems aimed at industrialisation

as well as manufacturing of mature products and systems that fully meet the stated user requirements

This acquisition role is then divided into four categories, namely: v Technology Acquisition v Capital Equipment Acquisition v Product Systems Support Acquisition v Procurement The acquisition process starts from technology development, product development, manufacturing, maintenance and support until disposal. To support the acquisition function, Armscor also undertakes research and development and supplies engineering and technical capabilities to the Department of Defence. ARMSCOR also manages the Naval Dockyard in Simon’s Town, which is the Navy’s 3rd Line maintenance and refitting authority. The Dockyard executes activities such as planned preventative maintenance, corrective maintenance, refurbishment and repairs, as well as upgrades and modernisation on the SA Navy’s vessels (ships and submarines).

“GATEWAY TO DEFENCE SOLUTIONS”

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Inspire South Africa Issue 1 website: For more information, please visit Armscor www.armscor.co.za


BRICS summit

summit in New Delhi and the follow ups scheduled for the 2013 summit in Durban provide evidence. A portion of this evidence is carried in the 18th point of the 2012 Declaration: ‘We agree to build upon our synergies and to work together to intensify trade and investment flows among our countries to advance our respective industrial development and employment objectives.’ This is a promise by BRICS member states to collaborate in economic development and other attendant chapters. This declaration is highlighted in a number of proposals which promise to translate into tangible development initiatives and thus institutionalise the BRICS formation. Critically, these include proposals to collaborate on infrastructure development projects, information and communication technologies (ICT) development, finance, health, and agriculture and rural development. Development on this front may come to silence skeptics who have been quick to dismiss the four-year-old BRICS formation as a simple talk shop. The proposal to establish a BRICS Development Bank is central to all these proposals given the obvious role of finance. There has been considerable movement around this proposal and a promise that tangible progress will be reported during the fifth BRICS summit. ‘The world will be watching,’ says Stevens, the Standard Bank economist. This is because the BRICS Development Bank initiative will provide an institutional underpinning to the bloc. It will go a long way into displaying unity of purpose and vice versa. Responding to signs of escalating skepticism around South Africa’s BRICS membership, Nkoane-Mashabane highlights improved trade activity within BRICS members. ‘South Africa’s BRICS membership holds prospects for attracting investments in our economy, contributing to the growth of our exports, and creating conditions for employment creation.’ Figures show that South Africa is punching way above its weight within inter BRICS trade trends. This is clearly reflected in a research note written by Stevens and Freemantle who argue that the leap in importance of the BRICS has been most pronounced for South Africa. ‘A decade ago trade with the

BRICS economies accounted for a mere 5% of South Africa’s total trade with the world. In 2012, this figure stood at 19%. Nominally, in this same time period, South Africa’s trade with the Bric economies surged more than ten-fold from around $3.2bn to $37 billion.’ While some analysts suggest that BRICS may translate into a situation where South Africa clears a path for its fellow BRICS members and mainly China and India to trump it in the new scramble for Africa, Stevens and Freemantle provide information which suggest otherwise. They argue that ‘China’s relative role in Africa is more proportionate to its relative economic might.’ Their figures show that China accounted for almost 60% of total BRICS trade with Africa. This argues Stevens and Freemantle is broadly commensurate with China’s economic size within BRICS. Similarly, India’s role is consistent with its economic size, whilst Russia and Brazil are relatively underrepresented. ‘In the context of Africa, South Africa breaks the mould, punching above its economic weight. Adjusting for relative economic size, South Africa remains by far the most integrated of the BRICS in Africa’s trade calculus, accounting for 11% of BRICS trade with Africa. South Africa is the third largest BRICS trading partner for Africa—in 2012 South Africa-Africa trade was 35% greater than Brazil-Africa trade and 200% greater than Russia-Africa trade.’ Stevens and Freemantle do issue word of caution. In reality, the BRICS still act as competitors in Africa. And, despite best intentions the group is diverse and has struggled to carve out a collective agenda. However they do highlight the theme of the fifth BRICS summit as a silver lining of sort. The theme is ‘BRICS and Africa—partnerships for integration and industrialization.’ Nkoane-Mashabane says the theme was carefully chosen to reflect South Africa’s commitment to take Africa’s development agenda into the BRICS formation. ‘The theme that we have chosen for the summit is in line with our objective of promoting the African Agenda.’

Inspire South Africa Issue 1

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brics bank

huge gap A

for a development bank built by BRICS

‘We … have the capacity to run the best financial services in the world. We are a very sound, dependable democracy, with an independent foreign policy.’ By Sibonelo Radebe

‘t

he IMF policies not only exacerbated the downturns but were partially responsible for the onset.’ While South Africa is the smallest economy inside the BRICS bloc, it stands a good chance of securing a mandate to play host for the bank. Top bankers, prime economists and all sorts of number crunchers from around the globe are said to be dusting up their resumes in anticipation of a new giant that is being designed to dawn over the world of development finance. Such is the reverberation caused by the mere conceptualisation of a development bank under the BRICS formation. It could be as huge as the political character of the bloc formed by Brazil, Russia, India, China and South Africa (BRICS) has become. When pitched as an alternative to the Bretton Woods Institutions; the International Monetary Fund and the World Bank; the BRICS Development Bank will come to fill a gaping

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hole in the world affairs. From this angle, it comes with strong ideological undertones as expressed through the well-established disgruntlement over the conduct of the IMF and the World Bank. In many quarters, the IMF and the World Bank are seen as peddling the interests of imperialistic western powers and at the archaic economic policies which contributed to the making of the 2008 financial crisis. Warnings have been coming long before the 2008 crisis. In reviewing the 1997 Asian financial crisis, Joseph Stiglitz concluded that ‘the IMF policies not only exacerbated the downturns but were partially responsible for the onset.’ It is this view which has seen the BRICS bloc campaign for the reform in the governance of the Bretton Woods Institutions. Discussions of the BRICS Development Bank adds a new angle to the future vision even though the bloc is careful not to style this initiative as an alternative development finance institution but a complementary service.

Inspire South Africa Issue 1


brics bank

Observers are watching this discussion with interest with many pointing out that even as a complementary service it is long overdue. Lynette Chen, CEO of the Nepad Business Foundation, says such a bank will come in handy to reduce the funding deficit faced by infrastructure development needs across the African continent. Jeremy Stevens, a China-based economist for Standard Bank, said the BRICS Development Bank will be best paced to better understand the priorities faced by emerging economies. It could be styled to house institutional support for development projects. Stevens sees the BRICS Development Bank as a critical chapter in the BRICS formation, one that will come to provide institutional underpinning for the bloc. He speculates that the establishment of such a bank will demand about $50 billion from BRICS member states which may translate to a contribution of $10 billion per member. This capital could be complemented by contributions from other sources or states with speculation that participation will not be limited to BRICS members. The idea only emerged into the public arena during the fourth BRICS Summit held in New Delhi, India, in 2012. A declaration from that summit said ‘We have considered the possibility of setting up a new Development Bank for mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement the existing efforts of multilateral and regional financial institutions for global growth and development. We direct our Finance Ministers to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back to us by the next Summit.’ The idea has quickly developed into what looks like a tangible plan. That is, if the promises of the fifth BRICS summit to be held in Durban are anything to go by. South African authorities have promised that the Durban summit will register significant progress on the BRICS Development Bank front. In a speech presented recently, deputy minister of international relations Marius Fransman said ‘As the host of the next BRICS Summit in early 2013, we have a contribution to make to the realisation of the objective of establishing the BRICS Development Bank.’ He has not been alone in making such a promise.It could be that South Africa is making rash decisions on this matter. This is a serious matter and expecting a major announcement only after 12 months of coming up with the idea indicates over optimism. But then South Africa does want to be seen to be leading this development. This may contribute further into positioning South

Africa as the best candidate to host the BRICS Development Bank whenever it takes off. South Africa is globally recognised for its advanced financial system and the attendant skills base. Maite Nkoana-Mashabane, Minister of International Relations upped the ante in March 2013 by revealing that the office of President Jacob Zuma is running with the mission of securing from other BRICS members the mandate for South Africa to host the BRICS Development Bank.She was quoted saying ‘Of course hosting it will be good. But not just good because it’s good to host an institution, but because SA has something to offer. We … have the capacity to run the best financial services in the world. We are a very sound, dependable democracy, with an independent foreign policy.’ She also said that it would also be worthwhile for South Africa to settle for nominating a citizen to run the bank, if the country fails to secure the first prize of hosting the bank. Stevens has speculated that if South Africa does not get the bank it might get the reinsurance attached to the BRICS Development Bank plan. For an expert who operates from China, Stephens’ views are worth something. He says South Africa stands a good chance of emerging as a critical player in this development due to its strong base of financial systems and skills. This is a point well captured by Fransman that South Africa is a source of exceptionally sophisticated professional services and financial expertise. The country was ranked fourth globally in the 2011/12 World Economic Forum’s Global Competitiveness Index’s financial market development ranking. ‘The regulation of the Johannesburg Securities Exchange (JSE) was ranked number one in the world, as was the strength of South Africa’s auditing and reporting standards. Additionally South Africa is ranked 2nd for both the eliability and efficiency of banks and the efficacy of corporate boards. With direct access to the rest of the continent and situated between the East, the Americas, Europe and the Middle East, South Africa has many structural advantages which make it an excellent investment destination and ideal partner in the African growth story.’

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brics summit

The ‘s’ in brics: an African perspective Maite Nkoana-Mashabane: Minister of International Relations and Cooperation, South Africa

s

outh Africa’s foreign policy contends that our national interests are better safeguarded by not just focusing on our own national interests, but broadly on the interests of our region and our continent. Our country, as a member of the BRICS (Brazil, Russia, India, China and South Africa) bloc, is playing an important role towards the shifting and distribution of power internationally. This shift is expected to give rise to a multi-polar world order. Our interaction with fellow BRICS states is premised on three levels of engagement: firstly, national, where we advance our national interests; secondly, regional, where we promote regional integration and interaction with specific emphasis on the African Union mandate given to President Jacob Zuma to promote infrastructure development across the continent; and,

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thirdly, on a global level, where we advocate for a more inclusive global governance system. The BRICS bloc represents 43% of the world’s population, approximately one-fifth of global gross domestic product (GDP), estimated at US$13.7 trillion, as well as combined foreign reserves estimated at $4.4 trillion. In, 2012, the BRICS countries accounted for approximately 11% of global annual foreign direct investment (FDI) flows ($465 billion) and 17% of world trade.

Promoting the African agenda South Africa’s membership of BRICS contributes to further leveraging economic opportunities for our own development agenda as well as that of the continent. We want to ensure that

Inspire South Africa Issue 1


brics overview

our membership of BRICS also benefits the entire continent. The Fifth BRICS Summit scheduled for 26-27 March 2013 in Durban will constitute another high-level opportunity to further support key priority areas of the African agenda. Asset Management Global chairman, Mr Jim O’Neill, published an article entitled “South Africa’s BRICS Score: Not All Doom and Gloom”. O’Neil argued objectively that South Africa could more than justify its presence in BRICS if it helped Africa to fulfill its remarkable potential by exploring cross-border expansion in trade and infrastructure, as well as improvements in domestic productivity. Africa is emerging as one of the fastest growing markets with the potential of future growth due to the demographic basis underpinning this growth and the new consumer market that is emerging.

BRICS-Africa trade set to treble The BRICS countries now constitute the largest trading partners of Africa and the largest new (not total) investors. The BRICS investment portfolio in Africa is very encouraging and promising. Over the past decade, we have seen a seismic acceleration of commercial and strategic engagements between the BRICS and Africa. BRICS has nourished Africa’s economic emergence and elevated the continent’s contemporary global relevance. The recession and recovery period has enhanced this shift. In 2010, Standard Bank economists predicted that BRICS-Africa trade will ‘see an additional increase in the velocity of BRIC-Africa engagements, with trade and investment spearheading the commercial charge’. According to Standard Bank, BRICS-Africa trade will increase threefold, from $150 billion in 2010 to $530 billion in 2015. The exponential growth potential of BRICS over the years to come will impact considerably on the future of emerging markets and developing economies - especially in the case of Africa.

Infrastructure development is also expected to boost our competitiveness and create jobs.

Supporting Africa’s industrialisation Our BRICS partners view South Africa as a springboard into the African continent and a partner for economic development opportunities. At the New Delhi Summit, President Zuma met with captains of industry from fellow BRICS member states and invited them to join hands with South African companies in the development of Africa, pointing out that in the infrastructure sector alone, $480 billion in investments will be required over the next 10 years. BRICS leaders already expressed support in the Sanya Declaration for infrastructure development in Africa. They

South Africa’s membership of BRICS contributes to further leveraging economic opportunities for our own development agenda as well as that of the continent

Tackling SA’s, Africa’s challenges South Africa’s membership of this emerging markets bloc must be understood within the context of what we wish to achieve against the current challenges we face as a country and a continent. As part of the developing world, South Africa faces the challenges of poverty, unemployment and inequality. BRICS leaders engage in peer learning and share best practices and development models. The Indian Prime Minister, Manmohan Singh, outlined 10 specific priority areas at the New Delhi Summit last year. These included job creation; skills upgrading; energy, food and water security; sustainable growth through expanded trade opportunities; clean energy; income inequality; urbanisation; and the impact of the external geo-political environment. Due to the complex nature of our challenges, the South African government has singled out infrastructure development as a key vehicle for improving the quality of life of the people.

are committed to the continent’s industrialisation within the framework of the New Partnership for Africa’s Development (Nepad). In the Delhi Declaration, the leaders expressed further support for Africa’s industrialisation, saying they ‘attach the highest importance to economic growth that supports development and stability in Africa, as many of these countries have not yet realised their full economic potential’. The BRICS economies, which already constitute between 20 and 25 percent of global GDP, will link a large part of Africa with the fastest growing economies in the world. First published on 16 January 2013 by the Department of International Relations and Cooperation. Credit www.southafrica.info

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of the nation

Having served as a Minister for the South African government since 2002, Nosiviwe Noluthando MapisaNqakula is now embracing her greatest challenge yet, that of Minister of Defence and Military Veterans, a post she assumed in June. In this, her third ministerial position, Minister Mapisa-Nqakula is on familiar and beloved ground. Long has the trumpet sounded her staunch drive to ensure that South Africans live in safety, with peace and stability driving her many campaigns over decades of work for the ANC. Minister Mapisa-Nqakula has been a defender of human rights by leading the youth, women and her peers through troubled times. Having achieved a Primary Teachers Diploma, and following two years as a teacher at the Eastern Capes’ Bensoville Junior Secondary School and St Matthews Training College in the late Seventies, Minister Mapisa-Nqakula was deeply touched and disturbed by the rate of Matric drop-outs in disadvantaged communities. This led to her undergoing training in Youth Leadership and Community Development, resulting in the Minister directing her attention at open school environments and then by becoming the assistant director of the Masazane Open School, a project directed by the South African Institute for Race Relations. The concept of


opening schools to all races was seen as a major step in addressing the crisis of black education following the Soweto uprisings of 1976. Similarly Minister Mapisa-Nqakula felt the challenge of the mothers of students, many of whom were domestic workers, and helped in founding the East London Domestic Workers Association. In 1984 the Minister travelled to Angola and the Soviet Union to undergo military training within uMkhonto weSizwe (MK), something that stands her in good stead in her current role. While in the Soviet Union she served as a member of the ANC’s political and military structures and later headed a Commission that was created to investigate desertions of ANC’s uMkhonto weSizwe members to the United Nations High Commissioner for refugees (UNHCR) in Angola. In the late Eighties and early Nineties Minister Mapisa-Nqakula interests were slanted towards woman’s rights. Initially she represented the ANC’s Women’s Section of the Pan African Women’s Organisation (PAWO) before becoming the ANC Women’s League President from 2003-2008. Her contribution to the development of the ANC has been multifold. The Minister helped to rebuild structures of the ANC during the crucial Nineties as well as during the years following the ANC’s election as the ruling party government. She has held the positions of Deputy Chairperson of the Political Committee and acted as the first female Chief Whip of the majority party in parliament. Since 2007 she has remained a member of the National Executive Committee of the ANC. Most notable in terms of the Ministers’ defence activities is her chairing of the Joint Standing Committee in intelligence since 1994;

and as a Theme 3 Core Group Member of the Constitution Making Process, also since 1994. Amid all these activities the Minister has also studied Project Management at a Canadian University, psychology at Newport University, and undertaken courses in Human Relations and Communications. Minister Mapisa-Nqakula’s impact as Deputy Minister of Home Affairs for two years led to her appointment as the Minister of that department in 2004, a position she held until 2009 before she accepted the post of Minister of Correctional Services. In this position she oversaw the overhaul of legislative frameworks that aided with the regulation of parole, medical parole, and the care and improved conditions of those

incarcerated. This included the consideration of children who live with their mothers in the prisons, as well as the handicapped, juveniles and the elderly. A further task was to ensure the correctional services department be on course achieve a clean audit by 2014. She has fondly been referred to as the ‘cleaner’ given her various appointments, all of which have required the need for intense ‘turnaround’ strategies to optimise service delivery. Along her journey she has been entrusted with security sensitive projects and currently is a member of the Justice Crime Prevention Cluster while also chairing the International Cooperation Trade and Security Cluster by virtue of her role as Minister of Defence and Military Veterans. Over the years the Minister has been called upon to speak at international conferences, such as the Quality Development and Peace Seminar in Nairobi in 1985, and the 2001 World Racism Conference that was hosted by KwaZulu-Natal.

In 2010 Minister Mapisa-Nqakula spoke at the 12th United Nations Congress on crime prevention and criminal justice in Brazil. She was outspoken about her intolerance of crime, particularly that of organised crime and corruption. She vehemently stands against human trafficking, terrorism and xenophobia and continues to underscore the critical importance of collaboration and cooperation in raising awareness of the treatment of women prisoners. More recently, at the Africa Aerospace & Defence exhibition, she emphasised the importance of the South African government’s agenda to focus on the humanitarian aspect of military business, which includes ensuring peace support, humanitarian aid, security and stability for South Africa, its neighbours and the continent. Minister Mapisa-Nqakula is married to the former South African Minister of Safety and Security, Charles Nqakula, now South Africa’s high commissioner to Mozambique. She is the mother to four children. Gripen over Robben Island, South Africa’ by Frans Dely. Copyright Saab AB


kzn investment

invest opportunities galore make KZN ‘gateway to Africa’

KwaZulu-Natal’s ports and world-class infrastructure are being recognised by the international business community, as exemplified by the recent BRICS Summit, writes Yolande Stander

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waZulu-Natal’s bustling economy and world-class infrastructure has earned the province the label ‘the Gateway to Africa’ and premier investment destination. The province, situated on the east coast of South Africa, bordering Mozambique, not only has the second largest economy in the country, contributing roughly around R300 billion or 17.5% to the national gross domestic product (GDP), but is also home to two of the country’s busiest ports, adding to the investment allure. About 18% of the country’s exports comes from the province. Hence, the fifth BRICS summit will be held in the province on 26 and 27 March 2013. BRICS is the acronym for the five member countries, Brazil, Russia, India, China and South Africa, all with emerging economies, and is an organisation

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aimed at increasing the countries’ global economic development. ‘The world is looking at Africa for opportunities on trade and investment. The province of KwaZulu-Natal is poised as the gateway not only into South Africa, but into sub-Saharan Africa as well, especially though the ports of Durban and Richards Bay and the Dube TradePort Aerotropolis’, said Zamo Gwala, Chief Executive of Trade and Investment KwaZulu-Natal (TIKZN). The port of Richards Bay is the largest bulk coal terminal in the world with more than 80 million tonnes of coal routed through the port annually while Durban port is Africa’s busiest harbour with the capacity to handle 2.6 million containers, making up about 68% of South Africa’s container traffic every year. The Dube TradePort is a trade and logistics hub boasting a state-of-the-art angri-zone and cyber port centred around

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ment Durban’s world-class King Shaka International Airport and complements the logistics services of the two ports. The province is also constantly looking at development opportunities in terms of infrastrucure and is currently implementing an ambitious expansion project at the Durban Container Terminal (DCT) through which the terminal’s container handling capacity will be increased to 2.9 million containers. A refurbishing project is also underway at the port of Richards Bay replacing conveyor belts, ship loaders and unloaders and dust extractor units. Dr Zweli Mkhize, Premier of KwaZulu-Natal said thanks to these developments the province was now the ‘undisputed gateway’ into the rest of Africa and other continents. With the highest export propensity and highest level of industrialisation in the country, KwaZulu-Natal’s economic

activity is centred around a large manufacturing sector bolstered by the paper products industry as well as ferro-alloys and other chemicals. Gwala said vehicle and component manufacturing, printing and publishing, food and beverage production, iron and steel, wood furniture, textiles and clothing also contributed significantly to the local economy. Most economic activity is concentrated in the metropolitan areas of Durban, the capital city Pietermaritzburg and Richards Bay. The province is also a goldmine of investment opportunities across all sectors and is ready to receive investors with open arms with investor-friendly policies in place, backed up with lucrative incentives. ‘KwaZulu-Natal offers a wide range of excellent investment opportunities. If it is in manufacturing, we have the workforce, a good infrastructure network, roads in particular, and, most importantly proximity to both the ports

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and the Dube TradePort and King Shaka International Airport. ‘If it is in tourism, we have the weather, the sea, the wonderful Drakensberg and a most interesting multiculturalism. We have an excellent quality of life to offer immigrant investors with outstanding schools and four universities. If it is in the services sector, we have provincial and local governments that offer support to service providers and a large population,’ said Andrew Layman, chief executive of the Durban Business Chamber. With KwaZulu-Natal’s rich natural resources, one of the sectors with investment potential is agriculture. This diverse sector adds 3.8% to the province’s value-added GDP. It also has room for major growth with agriculture contributing about R15.8 billion to the gross geographic product (GGP), while its potential is estimated to be in the region of R30 billion per year. According to TIKZN, the discrepancy between actual production and the potential indicates that a large percentage of farmland has not been fully developed. Government regulations and policies have been developed to encourage foreign investment in this sector and has been earmarked as a

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priority investment area with streamline and investment-friendly legislation, incentives and legal protection for foreign investment. The automotive sector, another economic driver in the province, is a major employer and has provided jobs for more than 7 000 people in manufacturing operations and 28 000 in the retail sector. About 13 500 people work in the component manufacturing sector. KwaZulu-Natal contributes about 32% to the total vehicles made, the third largest contribution in South Africa — for export in the country. This sector also has potential for growth with government setting the domestic automotive industry a target of 1.2 million units of production by 2020, a 11% growth rate. TIKZN has identified the manufacturing of airbags and airbag packs, air compressors, engines and engine components, centre consoles, chassis modules and components and new generation manifolds as investment opportunities. Gwala said these investment opportunities were also backed up with many attractive investment incentives administered by the national Department of Trade and Industry (dti) with various local and provincial investment promotion agencies

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‘A new Provincial Tourism Master Plan was approved by the offering facilitation services between investors and traders to Cabinet with a target to increase tourism jobs to 180 000 by assist them in accessing these incentives. The province also 2020 and the number of domestic arrivals to 24.17 million by produces about a third of the country’s plastic products and uses 2030. We are determined to market the province as an African about 150 000 tonnes of polymer annually. The chemicals and city of choice for business, leisure and holiday homes,’ he petrochemicals sectors make up 17% of the province’s added. Mkhize further said the province also developed a manufacturing output and contributes to just under a third of business/tourism hosting programme as part of its preparation the sector’s turnover. for the BRICS summit with the aim of showcasing the most KwaZulu-Natal has set its sights on becoming the country’s distinct features of KwaZulu-Natal to the world. He also stated economic hub and has therefore earmarked the development that ‘The programme will explore all our unique flora and fauna, of the information communication technology (ICT) sector as especially our game parks and World Heritage Sites some of another focus area. which are home to the Big Five — the rhinoceros, lion, African The province already has top notch telecommunications elephant, leopard and Cape buffalo.’ infrastructure in place, mainly in its business centres including KwaZulu-Natal is divided into four regions, each with its Durban, Pietermaritzburg, Newcastle, Port Shepstone and own economic activities. The Richards Bay, and include northern part of the province, technologies such as fibre-optic, including the district WiMax and 3G. Local universities, “The province of municipalities Amajuba, municipalities and government KwaZulu-Natal is poised uMkhanyakude, Zululand programmes play an active role in and parts of uMzinyathi with ploughing the necessary skills into as the gateway …. into coal mining and manufacturing the ICT sector through various sub-Saharan Africa as being the main economic drivers initiatives. The KwaZulu-Natal well, especially through in the region. The biggest Education Department has also started offering ICT subjects at the ports of Durban and business opportunities in the area include the development school level, to ensure the Richards Bay and the of small scale coal mines as well development as tourism. of this sector. Dube TradePort The western region is home Alternate and renewable Aerotropolis” to the province’s capital city energy is also high on the Pietermaritzburg which is about province’s list of priorities to 75km from Durban. Driving the sustain growth. There are economy in the area is tourism, manufacturing and agriculture. currently several initiatives under the microscope including a Commercial farming is centred around sugar cane, fruit, animal methane gas from landfill site as products, stock farming and forestry while subsistence farming well as micro-hydro schemes in the eThekwini district. Cow mainly includes maize production. digesters, solar water heaters, garden refuse incineration, The southern region is the province’s economic hub and co-generation, bio-fuels, bio-gels, wind energy farms, ethanol comprises the eThekwini Municipality and the Ugu District plant and biomass waste to energy are also Municipality. The region includes Durban, Port Shepstone, being considered. Pennington, Margate and Hibberden. The eastern part of the The province has also taken massive strides in providing province is the second most populated region in KwaZulu-Natal industry and residents with quality basic services including after the southern region and includes municipal districts of water supply. One of these projects is the R2.2 billion MooiuThungulu and Ilembe and is home to the port of Richards Bay Mgeni Transfer Scheme which will supplement the yield of as well as the King Shaka International Airport. The towns of the Mgeni water system, one of three systems supplying water to Richards Bay, Ballito and Empangeni are the economic centres about 6.3 million people living in KwaZulu-Natal municipalities of the region. of eThekwini Metro, uMgungundlovu and uMsunduzi. The Key sectors in the area include manufacturing and District Municipalities of Sisonke, Ugu and Ilembe are also agriculture, including sugar cane, vegetables, tunnel farming, indirectly benefiting from the project. flowers, nurseries and paper, tourism and natural resources, ‘Tourism also remains a very important sector and KwaZulusuch as forestry and mining. The region is also a hub of cultural Natal is the third destination of choice for international tourists. activity with authentic Zulu culture leading to opportunities in We have identified tourism as one key priority for stimulating both tourism and manufacturing with a growing demand for economic growth and job creation in the province. It contributes Zulu handcrafts and other products. about 10% to the GDP of the province,’ said Mkhize.

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Sun, surf and plenty to do: KZN tourism leads the way From the colourful culture of the Zulu people to miles of the unspoilt golden beach, KwaZulu-Natal continues to set the standard as South Africa’s premier international travel destination writes John Harvey.

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t is no secret that the province of KwaZulu-Natal enjoys South Africa’s best all-year-round climate, with balmy day and night time temperatures rivalling those of Brisbane in Australia. As a result, it is little wonder that the province’s tourism industry continues to thrive, attracting visitors from both within South Africa’s borders and abroad each year. The tourism sector contributes about 10% (direct and indirect) to the provincial Gross Domestic Product (GDP) with the hotel and accommodation subsector responsible on its own for about 1.1% of provincial GDP. Average spend annually is in the region of R8.75 billion. However, the tourism authorities of KwaZulu-Natal have certainly not rested on their laurels and have gone all out to capitalise on the excellent weather that defines the province from Durban to the South Coast, Zululand and beyond (KwaZulu-Natal enjoys a warm subtropical climate, where temperatures range from 12°C at night to more than 30°C in the day, and sea temperatures measure as much as 25°C most of the year). In 2012, the City of Durban launched its National Geographic International Marketing campaign, which is set down for the next three years. International travel blogger Andrew Evans visited Durban last year as part of the agreement and blogged over the National Geographic website about the experiences in Durban which

covered culture, urban lifestyle, heritage, adventure and the warm Coastline. The Durban vignette (Sounds of Durban) promoting the city overseas has been all over the internet and viewed by millions of people on the internet and National Geographic. The vignette has already been broadcast more than 1 600 times with another 400 to go before 31 July 2013. National Geographic broadcasts across 160 countries to 363 million households in more than 60 languages. Durban Tourism senior marketing manager Dumi Mbatha said Durban Tourism would also launch its latest documentary with National Geographic in London in April. The documentary is 30 minutes long and will be aired in more than 160 countries across the world. On the east flank of the Durban beachfront or ‘Golden Mile’ stands the hugely impressive uShaka Marine World, the $125 million 40-acre theme park, which offers visitors a wide array of family entertainment options at its three signature attractions such as Sea World aquarium, the gated water park Wet N’ Wild, and the Village Walk, comprising more than 80 shops and restaurants. Attracting more than 1.2 million visitors a year, uShaka Marine World has won a host of local and international awards, including the Inernational THEA award for Outstanding

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Achievement in the marine park category, awarded by the Themed Entertainment Association in 2004. Umhlanga Rocks, north of Durban, is increasingly becoming a playground for the trendy visitor, in addition to being a highly sought-after business precinct for successful companies. Here, the golden beaches stretch northwards for more than 200 kilometres, all the way to the Isimangaliso Wetland Park, a world heritage site, while inland from Umhlanga, endless fields of sugarcane give way to the undulating landscape of the Valley of 1 000 Hills, the massive Inanda Dam and the mystical hidden valleys of Zululand. As Umhlanga Rocks has grown, so too have the attractions the seaside paradise has to offer tourists to the region. The spectacular Gateway Theatre of Shopping centre and Sibaya Casino are a mecca for shoppers and those looking to splash out on some fun at the tables. Gateway is considered to be the biggest shopping centre on the African continent, with more than 1.8 million visitors passing through its passages every year. The centre is home to 18 movie theatres, six Nouveau Cinemas, a playhouse called the Barnyard Theatre, more than 70 restaurants and 350 stores, a 4 000 square metre skate park designed by legendary US skateboarder Tony Hawk, a 4×4 track and a science theme park. Yet, Umhlanga Rocks is hardly what one might consider a concrete jungle. Ocean enthusiasts and outdoor adventurers will also be in their element thanks to innumerable

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opportunities for surfing, deep-sea fishing, scuba diving, whale and dolphin watching, scuba diving and even microlight flips. Although perhaps not as exclusive as Umhlanga Rocks, the KwaZulu-Natal South Coast is one of the province’s best-kept secrets for global travellers. ‘We currently have seven Blue Flag (exclusive eco-label awarded to beaches and marinas throughout the world) beaches and three pilot beaches. We also boast 11 golf courses and 14 birding routes, so there lots to see and do,’ explains Michael Bertram, Chief Executive of Tourism South Coast. ‘We also have two world class dive sites — Aliwal Shoal and Protea Banks — as well as several major ski-boat launch sites and celebrate big game fishing with several well attended fishing competitions.’ On a clear water day, Protea Banks takes on the appearance of a ‘miniature’ Great Barrier Reef, with rare pink coral attracting scores of rare reef fish. Of particular interest is a cave known as the ‘Hole in the Floor’ – a focal point of the ragged tooth sharks in the mating season. In keeping with the ‘adventure spirit’ of KwaZulu-Natal, the South Coast is also home to Oribi Gorge, the world’s highest gorge swing alongside a waterfall, and black water rafting along the Grade Three rapids of the Umzimkulwana River. For South Africans, KwaZulu-Natal’s Greater Margate area has become a regular port of call on the vacation calendar,

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particularly among school-leavers upon completion of their studies. The area boasts of a vibrant, colourful town, renowned for its exciting nightlife and set around one of the most spectacular Blue Flag beaches in the country. It is for good reason that the area around Margate has come to be known as South Africa’s ‘Golf Coast’. Eleven golf courses linked by a superb road network making for easy access to each are set in a sub-tropical paradise against the backdrop of the beautiful Indian Ocean. Most visitors choose to plan their holidays around playing each of these courses. One cannot talk about South Africa without making reference to the country’s famous Zulu kings and their traditional place seat of power, Zululand. From the Seven Kings who lie buried in the South, to the Big Five in the North, the Zululand district surprises with its diversity and down to earth hospitality. The region, which includes Ulundi, uPhongolo, Nongoma, Vryheid/Abaqulusi and Edumbe, is aptly branded the Heart of the Zulu kingdom, the place where many clans and tribes came together hundreds of years ago to be moulded into a great nation. ‘It is an undisputable fact that when foreign visitors come to South Africa, they come for two reasons,’ says Gustav Rohrs, Manager of Zululand Tourism. ‘One, is that our foreign visitors like to see the country’s many eco-tourism attractions. The second is that they come to see the culture and heritage

of the famous Zulu nation.’ Taking the visitor into the world of the Zulu spirit, the occult Cultural Museum in Ondini has one of the finest collections of Zulu cultural artefacts, while the Emakhosini Cultural Heritage Park is another essential stop in the journey to understanding the Zulu people. The battlefields where thousands of Zulu warriors fought and died, and earned their reputation as a nation of fearsome fighters, are of course a must-see for any history buff, particularly since these clashes play such an important part of South Africa’s past. According to Rohrs, there is no more moving experience that witnessing the Royal Reed Dance Festival held in eNyokeni Royal Residence near Nongoma, each year. The festival is attended by more 25 000 maidens from all parts of the kingdom and beyond who gather to celebrate their virginity and their approaching womanhood. Another attraction that has grown substantially in the past few years is Zululand’s Mona Market, which has its roots in another fine tradition of the kings. ‘It takes place every third week of the month, and grew of the Zulu king selling his excess white Nguni cattle at the market. However it has now turned into a three-day event at which you can buy everything and everything. It is a wonderful event in which to participate,’ says Rohrs.

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profile

robert more: Inspired, determined and visionary

‘Determined’ is a word Robert More, co-founder and Chief Executive Officer of MORE uses to describe himself. It’s a bold, strong word. It carries with it courageous connotations. However, it’s not a word large enough to describe a man who has, with the help of others, created a brand that entices people all over the world; a brand that not only promotes South Africa, but brings with it an ongoing vision of positive contribution to the people in our country. By Jabulile Bongiwe Ngwenya

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t’s a story that started in 1933 before Robert was born. His great-grandfather, stockbroker Guy Chalkey invested in property along the Sabie River on the fringe of the Kruger National Park. What began as the ideal safari resort in 1978, developed by Robert’s father John, came to an end in the year 2000 when floods washed the two camps – Warthog Wallow and River Lodge away. Not one to give up easily, a plan was put into place to build a new a place that would meet the future demands of both upmarket tourism and game conservation. ‘We started the business in 2001 with Lion Sands,’ says Robert More. ‘We had no idea that it would lead to a collection of properties. It was a single focus family business – we had everything to learn in a very competitive market. It was blood, sweat and tears and we learned the tourism business as we went along.” Robert More was born and raised in Johannesburg, until the age of six when his family moved to the Lowveld in Mpumlanga. At the age 12 he attended Saint Andrews College in Grahamstown before joining the South African Navy and going on to complete his bachelor degree in Economics and Accounts at the University of Cape Town. ‘I was given an incredible advantage by being born into a family which owned an asset in Lion Sands,’ says More. ‘My ambition is to take what I was given and build and create a business which will allow other talented and passionate people the same opportunity and in doing so give back positively to our country.’

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In 2004, the More brothers added the ultra-chic Ivory Lodge as their signature first step into the exclusive 5-star international market. In 2011, they clinched a co-traversing agreement with Kirkman’s Camp, one of the popular Big Five areas within the Sabi Sand Wildtuin. In 2010, More also took over the management of Tinga Game Reserve. It was the prestigious travel magazine awards for Lion Sands in 2010 – overall winner in the World Luxury Hotel Awards, in the most luxurious game lodge category; Tatler magazine naming Lion Sands as one of the best 101 hotels and Conde Nast’s Travel & leisure magazine reader ranking Lion Sands 24th in their annual survey of the World’s 500 best hotels - that put their business plan on the fast track. ‘I felt we were good at what we did and there were opportunities in the industry to do things differently and establish a foothold for our MORE Collection brand,’ says Robert More. ‘If we could get this niche right - of individual boutique properties located in key locations which were joined in trade to achieve efficiency of economy and scale and sales effectiveness, we would have a very strong business model. It was and still is a intrinsic core set of values that have given the MORE brand a visible strength that makes them unique thirst to be the best at all, trust and respect every individual, with no room for non-judgement and non-arrogance, boldly go where others fear to go, make and leave a mark while challenging convention and in the words of Robert More, ‘we commit to being cool. It defines our approach, our attitude and our experiences.’

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While aware of his own shortcomings, a strength in itself, More acknowledges that self-discipline, hard word and a great attitude are the factors that keep him moving towards greater achievement. ‘Life is a roller coaster and I have had many days where I just don’t feel like getting out of bed and the world is imploding. My coping mechanism is a five-step principle which I learnt while hiking with my wife in the Drakensburg where we got lost and in some real danger of losing our lives. One: remove the emotion; two: assess what you can control; three: don’t make any big or life changing decisions while in a crisis as often what we perceive is not as bad as the reality; four: set the priority and five: take the first step to achieving the priority and only worry about one step at a time; eventually you get over every challenge and soon things start to open up and you are back on your feet again’. MORE is a family-owned business. This value encompasses the reason of being for the brand. The values of family speak to the MORE core values and every effort is to give guests the experience of being hosted in a commercial hotel or lodge as if they were a family member. ‘Our predominately foreign guests are nervous about South Africa and we want to take them in and ensure they get to meet us - South Africans - and see how warm and wonderful we are as if we are their own flesh and blood.’ Sincerity and respect is paramount to how staff and management interact with each other. It’s also vital to how guests must experience the luxury of staying in any one of the five hotels and lodges. ‘All our properties are boutique and pay homage to the unique location of the Hotel or Lodge,’ says More. ‘This is not just about five-star luxury and consistency. It’s about a personal, luxurious guest experience which is in line with what the area should be offering. Each property pays respect to the landscape and the culture and history of the area.’ The ideal of family begins in his own home with his wife, Britt More, the sales director in MORE and their children. It’s also the basis that he has had with his brother, Nick More who works as the Executive Director for the Tinga & Lion Sands Lodges. ‘Like in any family you can never get too big for your boots and trust me a family member will bring you back down to what is important. We love and support each other through thick and thin and try and live by this in our dealings with everyone in the company.’ It is a powerful message and an ideal he strives to live by everyday, but outside of the interaction More enjoys with guests, he still finds himself aware that work must be done to change the perception of Africa and South Africa. Internationally acclaimed author Chimamanda Adichie has spoken widely of the danger of the single story – the perception

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of Africa has a dark continent with corrupt leaders, political strife, crime and unending famine and homelessness. More believes there is another story we must tell the world, a story that is true to who we are as Africans. ‘We are a people business which is built on a sustainable relationship between commercial, community and conservation. This can be seen on our websites where we feature all our key people; we focus on conservation at all our Lodges and it is not just about the Big five; we encourage our guests to visit each and every one of our community-based projects at all of our properties and commercially we operate a business which is done so on a world class level with utmost professionalism and integrity.’ He believes that it is only through travel that one begins to be appreciative of the world’s diversity and it is that same acknowledgement that he sees in others that gives him a sense of fulfillment and joy. ‘I love it when every single guest leaves our shores with such warm, fond memories of South Africa and its people and it is through that we will gradually change the negative stigma associated to Africa.’ To South Africans, his message is clear, ‘be proud, be respectful of each other and our visitor and get out there and do it.’ Today MORE includes Madikwe Safari Lodge, Cape Cadogan – an iconic building converted to a luxurious boutique hotel as well as More Quarters an apartment hotel that he uses when his family needs some time away from work and daily stresses. This is not the end of the journey for the More family. The world, as he sees it, has limitless possibilities and the opportunity to create something – another lodge, another hotel is always around the corner. ‘We are a glass-half-full family and this is what I hope to pass on to my three-year old twins. I want them to also know that respect for others is important and if you want to achieve your dreams, it requires hard work but make sure you do what you love because then it is not hard work, but fulfilment.’ To everyone else, he says, ‘your greatest opportunity to impact is through your business so operate it along all the values you want to pass on and you will see the impact happening.’

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‘my ambition is to take what I was given and build and create a business which will allow other talented and passionate people the same opportunity and in doing so give back positively to our country’.

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South African Social Security Agency (SASSA) New technology to disburse social grants hailed as the best in the continent. (Story by Tshediso Mahlaku: Manager: Media Relations, SASSA) The latest biometric technology employed by the South African Social Security Agency (SASSA) to disburse social grants to approximately 16 million beneficiaries on a monthly basis is proving to be a worthy investment in combating fraud within the social security system in South Africa. The new payment system has also been widely welcomed by beneficiaries of social grants as safe and convenient. The South African Social Security Agency (SASSA) has been responsible for disbursing social grants since it was established in 2004 (but came into operation in 2006). This is in accordance with its mandate derived from


OPPOSITE: The CEO of SASSA, Ms Virginia Petersen in a briefing session with Mr. Kaushik Basi of the World Bank. ABOVE:SASSA CEO (far left) explaining to the World Bank Senior Vice President, Development Economics and Chief Economics Mr. Kaushik Basi on how the Biometric system works.

the Bill of Rights contained in The Constitution of the Republic of South Africa (Act 108 of 1996), which prescribes the right of everyone to have access to social security, including appropriate social assistance if they are unable to support themselves and their dependents. Prior to the establishment of SASSA the function of administration and payment of social grants was the responsibility of the nine provinces into which the country has been divided since independence in 1994. This state of affairs resulted in fragmentation of services, rampant fraud within the system and obvious lack of norms and standards in the administration and payment of social grants. One of the first challenges facing SASSA during its first year of existence was to bring social security under a single but efficient administration. The agency was able to accomplish this daunting task within the prescribed period and very soon thereafter established same norms and standards for all nine provinces. The number of beneficiaries of social grants in South Africa grew from 2 million in 1994 to around 16 million in February 2013. Of these an estimated 11 million are Child Support Grant (CSG) beneficiaries.

New Technology Since March 2012, the Agency has been engaged in the process of mass enrolment of all beneficiaries using the latest biometric technology. This followed a major announcement by Minister of Social Development Ms Bathabile Dlamini on behalf of government. The technology includes finger and palm verification as well as voice recognition to ensure that the grant money is paid to the relevant beneficiary at all times. In this way SASSA is able to verify that the beneficiary is still alive and that no one can claim the money on behalf of a deceased beneficiary. The process is aimed at eliminating fraud within the system as well as avoiding long and winding queues at pay points, as was the case in the past.


President of South Africa Mr. Jacob Zuma, Social Development Minister Bathabile Dlamini and SASSA CEO Virginia Petersen watching the process of biometric mass enrolment of social grant beneficiaries.

The new SASSA smart card being issued to beneficiaries allows them to withdraw their grant money at local participating stores at no charge. Beneficiaries are also free to draw their money at any ATM (automated teller machine) at anytime and anywhere throughout the country. In introducing these reforms in the administration and distribution of social grants it remains a passionate vision of the CEO of SASSA, Ms Virginia Petersen, to provide a convenient but world class service to the people of South Africa. In a recent statement Ms Petersen declared that the future for SASSA looks bright and that she was “proud of the humanitarian way in which our people get their grants. We’ve managed to change where and how they get money through the new SASSA payment card. Through MasterCard the new SASSA payment card (besides its innovative safety features) also provides data on where the card is being used, even in other countries.” Electronic data shows that the new SASSA card has been used for withdrawals as far afield as the United Kingdom, Andorra, Pakistan and New Zealand.

Benefits of the new payment System Because of increase in the number of collection channels pay points are no longer overcrowded. The new system has seen almost 60% of cash beneficiaries migrating from pay points to receiving their social grant money at their preferred payment vendors which they find to be very convenient.

Other benefits of the new system include the following: • In addition to the increased payment gateways, beneficiaries have also used the increased payment channels to access their social grants within the first seven (7) calendar days of the month. The previous antiquated system indicated that beneficiaries were able to receive their grants only on specific dates and at specific pay points.


Social Development Minister of South Africa Ms Bathabile Dlamini presenting the much needed food supplies to a child headed house hold in the village of Ngobie, North West Province.

• The average time the beneficiary takes to access their money from the pay machine at a pay point has been reduced to a mere 30 seconds. This further reduces the queues and amount of time a beneficiary spends within a particular pay point. • An estimated saving of R88m (approx. $9.7m) has been generated so far through voluntary cancellation and lapsing of grants. This can be largely attributed to non-compliance. • For the first time Sassa will have a reliable electronic data storage of updated particulars of beneficiaries. • The biometric data compiled and stored can be compared with that of the Home Affairs department which is responsible for issuing citizenship documents.

Visit by the World Bank delegation In March 2013 Mr Kaushik Basu, Senior Vice President for Development Economics and World Bank Chief Economist led a delegation that visited a SASSA pay point in Coronationville, Johannesburg. The purpose of the visit was to learn about the new biometric-based payment card system, the strategic use of the system itself as well as the technology behind it. SASSA, and indeed South Africa as whole, can pride itself in that through this important visit, The World Bank hopes to use this information to assist other developing countries in improving the management of their own social security payment systems. This was confirmed by Mr Basu when he pointed out during the visit that “The important experiments that have been used are the kinds of ideas that we would like to take to other countries”. Judging by the quality of change and improvements in the payment of social grants in South Africa it is clear that Sassa has positioned itself well enough to becoming a leader in delivering a social security system that can be the envy of the world.


a golden past South Africa has long been pegged as a nature, adventure and wildlife destination. But more and more, it’s our history and culture that visitors want to explore. By janine stephen pictures by sa national parks

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omewhere in the whispering wonder of nyala and ana trees along the edge of the Limpopo, we found ourselves surrounded by elephants. More elephants than I have ever seen in one spot before: baggy skinned babies and curious youngsters; adults as big as removal vans; all slinking through forest to either side of the car, foraging and rumbling and flapping irritated ears at the smell of petrol. It was a superlative moment, full of awe and majesty, the kind of wildlife sighting that so many tourists imagine when travelling across the world to South Arica. And yet it was not even the highlight of a trip to Mapungubwe National Park and World Heritage Site, that wildly varied and intriguing destination right at the crown of the country, where the Shashe washes into the Limpopo and where South Africa, Botswana and Zimbabwe meet. It also was not the albino impala we spotted one morning, or the enormous kori bustards striding through the grass. No, what stands out from that holiday was standing high, high above the enormous plains on the secret summit of Mapungubwe Hill. Below, animal tracks radiated out in all directions and dots of antelope and a troop of baboons moved across the landscape. We were standing in a place reserved for kings, an ancient Lost City. This hill was once the centre of the largest kingdom on the subcontinent, a sophisticated civilisation with established trade

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links to such far-away places as China and India. From 1200 to 1290 AD, the people of Mapungubwe prospered and then for some reason they moved on, leaving the mountain to the ancestors, a taboo place for ordinary folk. But on its summit, buried in graves with the kingdom’s elite, they left behind evidence of a remarkable society. None of the objects found are more evocative than the Golden Rhino, a small but immaculate animal made of gold foil and tiny golden pins. The rhino is evidence of skilled smiths who lived in a complex, rich community and it has become a symbol of the African Renaissance. Before walking up the narrow, hidden staircase to the top of the Hill, guide Johannes Masalesa had briefed the group on the history of this special place. In December 1932, a sharp-eyed farmer named van Graan somehow persuaded a local to point out the rumoured scared hill. Van Graan and some friends started digging, only to uncover graves and astounding artefacts — bangles, pots, golden beads, the rhino and more. The royals had been buried surrounded by wealth and ceremony: one wore a necklace of gold beads and cowrie shells. Some objects covered in gold foil, one resembling a crocodile, were found with him. A woman buried seated, facing west, had golden bangles around her feet and glass and gold beads surrounded her. Thankfully, van Graan’s son later contacted the University of Pretoria, and archaeologists took over the excavations. But

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rumours of Mapungubwe gold decorating random family mantelpieces still do the rounds, and some believe that only a fraction of the artefacts discovered entered today’s collection. What remains helps us to understand the people who lived here so long ago. The hill may be silent and enigmatic now, but its sandstone heights were home to a royal elite who oversaw as many as 9 000 commoners. These subjects farmed cattle, sorghum and millet on the plains below. The city used the Limpopo River to connect to Arab traders at the ports on the Indian Ocean. Salt, cattle, fish, metals and more were traded through regional routes; gold and ivory was exchanged for prestige. What’s more, this was not the first settlement in the area. Remains of an even earlier Iron Age civilisation, known as K2, can be seen from the summit. While the archeological discoveries at Mapungubwe hit the headlines at the time, the news soon went quiet. Many of the discoveries were only publicised after 1994. SA History Online suggests this may well be linked to a reluctance to accept evidence of an African civilisation ‘that existed and flourished years before European occupation.’ Interest in the site grew as winds of change swept through South Africa. The provincial nature conservation department took control of the farm on which the Hill stands in 1992, and SanParks took the reins in 1999. In July 2003, Mapungubwe

was declared a World Heritage Site by UNESCO. And in 2012, an interpretation centre became the new home to many of the amazing objects uncovered, from figurines to sewing needles. The building itself is an attraction; it is a subtle, vaulted structure made largely from clay tiles fashioned on site, using local labour, and it won World Building of the Year at the World Architecture Festival in 2009. Inside, the Golden Rhino has pride of place, although it is not clear whether it is a replica or not; SANParks chooses to keep the location of the original rhino secret for security reasons. Displays are designed to communicate to all, even those who do not use a guide or are unable to read. Finally, the treasures of Mapungubwe are accessible to the public – and people are eager to see them. ‘Ninety per cent of visitors to Mapungubwe National Park come to the Park because of its rich cultural heritage,’ says Paballo Mohafa, Manager of Cultural, Heritage And Interpretive Centre. ‘It gives a visitor more to see beyond the natural heritage. Visitors can be taken to Mapungubwe Hill, to see the site of the first kingdom in southern Africa. On the hill visitors will see remains of houses, game boards and other cultural objects. The cultural heritage helps give meaning to the physiographic features within the Park, knowing that these features were at one time used by people long gone.’ Mapungubwe is an excellent example of the power of

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mapungubwe

cultural heritage to draw visitors. Visitor stats in general are up. Some 94% of international visitors to the park visited the museum. And Mapungubwe is very far from the only inspiring heritage site South Africa has to offer. The Tourism Department’s 2012 National Heritage and Cultural Tourism Strategy (NHCTS) spells out how it plans to focus more attention on the country’s heritage. ‘Currently, as a tourist destination, South Africa is positioned largely around “safaritype” experiences and scenic natural environments,’ the document states. Yet an analysis conducted by South African Tourism showed that more tourists enjoyed cultural and historical heritage than wildlife viewing. ‘Heritage and cultural tourism products are notably the fastest emerging competitive niche or product within domestic and international markets. The organisation for Economic Cooperation and Development (OECD) Report (2009) demonstrated that more than 50% of tourist activity in Europe is driven by cultural heritage and cultural tourism in particular,’ the NHCTS states. Of course, Europe boasts more museums and galleries than South Africa. But South Africa has innumerable sites of great importance. Robben Island, the Cradle of Humankind, AngloBoer War battlefields in KwaZulu-Natal, and Constitution Hill spring to mind. Communities themselves are assets: think Soweto township tours, or Ndebele or Xhosa homestays. Plus there are hundreds, if not thousands, of lesser-known niche-interest possibilities: arts, crafts, festivals, oral history, storytelling and folklore, places of historical significance, archeological remains and paleontological evidence. ‘The trends in heritage and cultural tourism are increasingly showing that travellers are seeking authentic, memorable experiences through meaningful interaction with local people and cultures,’ the NHCTS points out. It also cites United Nations World Tourism Organisation (UNWTO) statistics: cultural tourism accounts for 40% of international tourism. In 2011, World Tourism Day highlighted the value of cultural resources: ‘Experiencing different ways of life, discovering new food and customs and visiting cultural sites have become leading motivations for travel, and as a result, a crucial source of revenue and job creation, particularly for developing countries.’ It is also important to draw tourists to places that usually receive less tourist traffic is most attractive for South Africa, and to bring development opportunities to communities outside the key cities. ‘This segment of tourism has the potential to generate a significant number of decent jobs which are vital to combat the huge unemployment rate in South Africa,’ the NHCTS says. Yet, at this point, some cultural products are still ‘under-performing’, under-represented, and some are not meeting the quality standards visitors want. Consumer appetite for cultural products also varies: 85% of US tourists seek them out, but only 60% of Asians are interested. The NHCTS recommends prioritising flagship projects to promote heritage, in partnership with stakeholders like the

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department of arts and culture, environmental affairs, and SanParks. All eight World Heritage Sites in the country will be promoted — as will projects thought to be globally significant, including the National Heritage Monument; the First Indigenous Peoples Project (KhoiSan) in Graaff-Reinet, and the Dinosaur Interpretative Centre in Golden Gate Highlands National Park. Mapungubwe’s Paballo Mohafa is clear that the UNESCO honour has aided the park. ‘It puts it in the category of the best of the world,’ she says. ‘For cultural heritage enthusiasts who want to plan on a tour to any part of the world, the starting point is the World Heritage List,’ she adds. It is also free advertising, in a sense, and a stamp of approval; visitors expect to find ‘international standards’ and may feel more comfortable about booking. Of course, growing cultural tourism has its challenges, not least finding the resources to develop and staff sites in a country with so many demands on the budget. Retaining the integrity of sites, conservation and ethical tourism are also vital. As Bheki Zwane, SANParks general manager of sales and marketing points out, while SanParks is very aware of the value of various cultural heritage sites in its parks, some, like bushmen paintings, are delicate, and adequate infrastructure and planning is needed to ensure their safety before they can be made public. But overall, there is huge room for investment by business and the private sector in the segment, preferably in partnership with local communities. Darryl Lombard, Managing Director of Lombard Consulting, a tourism development and branding consultancy, agrees that the heritage segment offers ‘massive’ opportunities for growth and is clearly underutilised, but is also clear about the challenges. ‘The right product must be offered to the right market at the right time – and be well-priced,’ he says. Drawing sufficient numbers of tourists off the usual tourism routes can be very difficult, resulting in ‘wonderful concepts dying in the bush’. There is a need for astute marketing that can focus on and speak directly to niche markets (battlefield enthusiasts are a good example). Research on these markets is still inadequate. Tour operators must be encouraged to integrate cultural heritage items into their packages, and not simply offer them as add-ons. Also, South Africa needs more quality, digital interpretive materials – something many international tourists have grown to expect. One way of pushing traffic to areas is to market routes, as opposed to single destinations. The Greater Mapungubwe

Heritage Route was launched in October 2012, with the aim of tempting people to explore beyond their principle destination. So, besides the national park, visitors could visit sites like the sacred lake of Fundudzi, the Dzata Museum in Vhembe District, the Sagole baobab, or Thulamela, another lost city hidden in the Kruger Park. And they hope to link up with sites in Botswana and Zimbabwe via a transfrontier conservation area. ‘Heritage routes widen the appeal of the area for the public and encourage them to go to other sites in the vicinity,’ says Bheki Zwane. Many will also benefit from collective marketing, which gives the smaller sites more exposure than they could achieve alone. There is little doubt that Mapungubwe’s heritage offerings would meet most tourists’ expectations. That the park itself is

‘Heritage and cultural tourism products are the fastest emerging competitive niche or product within domestic and international markets.’

off traditional tourist routes is of no concer. Its story has the power to draw people in, and the quality of the experience means word-of-mouth recommendations are guaranteed. It seems it is a good time for tourists and investors to turn off the beaten track and explore new routes and culture.

Visting Mapungubwe It takes about 5½ hours to drive to Mapungubwe from Johannesburg. The 28 000 hectare park, previously known as Vhembe Dongola National Park, is South Africa’s newest national park and opened on Heritage Day in 2004. It has four of the Big Five, and some 400 birds as well as the cultural wealth. A variety of accommodation is available in the park, ranging from budget camping, to self-catering options, to a luxury lodge. Learn more about the attractions to be explored on the Greater Mapungubwe Heritage Route, from Thulamela to TK: http://www.golimpopo.com/activity-detail_mapungubweroute_30.html Visit www.sanparks.org to find out more about Mapungubwe.

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design indaba

home-grown style for sale

South African design, from fashion to décor, is not only making it big overseas – it is a force for change within the country. One event has done much to kick-start awareness of the sector’s potential. By Janine stephen pictures by Eric Miller, courtesy of Cape Craft & Design Institute

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avi Naidoo, the founder of the annual Design Indaba Conference and Expo, is sitting in offices awash with distinctive South African design. Furniture, textiles, ceramics – the place is an ode to the country’s plush homegrown décor and craft. He has been talking about the wildly diverse objects created by ingenious South Africans, from a condom applicator (clever packaging to help avoid slippery battles in the dark), to low-cost housing solutions, hip textiles, and new fashion for the starved men’s market. All the above items have graced exhibitor stands at the annual celebration of local design that is the Design Indaba Expo, a trade fair that has grown exponentially since its inception in 2004. On its third birthday in 2006, 15 500 people, including 27 international buyers, strolled through the curated exhibitor stalls. In 2012, 156 international buyers attended, over 40 000 people visited, and R180 million orders were placed. Strict curatorship has kept the Expo fresh and representative of the best the country has to offer: exhibitors can not buy space; they are vetted by a panel for quality and originality. The recession has not registered; orders have climbed steadily since 2009. Also, the benefits spread across the country while Capetonian designers dominate the Expo, almost 50% of exhibitors are from elsewhere in South Africa. The 2012 event created 1 151 jobs. And most impressively, Naidoo says,

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the Expo and its sister conference (which draws the cream of the design cognoscenti from across the world) added R1 billion to the economy in four years. ‘In 2012, R326.9 million was contributed to the national GDP. ‘We place a store by numbers; by how much exhibitors really sell,’ says Kelly Berman, the Expo manager. ‘We want them to do business and be exposed to local and international buyers. Getting South African goods and design out to international markets is a main drive. By demonstrating that our products are as good – or better – than design made elsewhere in the world, we can create jobs and support small and medium businesses.’ The sector is also one in which entrepreneurs can flourish, bringing additional job creation benefits. The Expo was launched nine years after the famous conference, at one point labelled most exciting talk shop in the world. By bringing together iconic designers from South Africa and the world, it did much to shake up attitudes about local design. Naidoo’s vision, as he explained in a 2007 interview, was to give an industry that had always been a bit of a Cinderella ‘the stature, gravitas and attention it deserves.’ Naidoo had no interest in ‘design soirees’. He wanted to see a move away from a moribund economy dependent on commodities and use design to create high-end, covetable products to take South Africa further up the value chain. ‘Why not use high tech, high art and high science as levers for social and economic renewal in Africa?’ he asked. ‘It’s less patronising and more about investing in intellectual capital, ideas and people.’ ‘Because it is a curated show it has become a benchmark of excellence to which producers aspire,’ says Cape Craft and Design Institute Market Support Coordinator: Export, Ryan Rode. ‘This is important in driving innovation and quality in the

sector. The Expo is unique in its positioning of design-led products with a South African flavour – other trade and consumer shows (Decorex, SARCDA) don’t apply the same criteria.’ This all makes the Expo a buyer magnet. Since its inception, the Department of Trade and Industry has worked with Expo organisers to bring international buyers to the show. At one point, the DTI worked with SA embassies overseas to promote inward buying missions, or sponsored trips for targeted buyers (18 were sponsored in 2007). This did not happen this year, but Berman says that by now, the event has many ‘loyal’ buyers who return year on year, from across Europe, Scandinavia, the UK, USA and Australia. The Expo also pushes exhibitors to keep abreast with current trends; a R50 000 award for most innovative product was introduced in 2012. In 2013, a collaboration with international trend forecaster Li Edelkoort challenged SA designers to articulate new trends. ‘Buyers are coming to Cape Town (and the Indaba) to spot new trends, and the feedback we get is that the trends they see in South Africa are way ahead of other international markets,’ says Nils Flatten, CEO of Wesgro. Wesgro sponsors a dedicated Expo day for buyers only, which includes a buyers breakfast,

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design indaba

attended by the city’s mayor, ‘to give confidence that the authorities are fully behind the local design sector’ – in 2013 the platform was also used to promote Cape Town’s 2014 World Design Capital coup. Buyers are also introduced to selected designers at a specially hired venue in a top hotel, to allow them to chat about current ideas in the sector. ‘This helps keep awareness about the country’s design sector high,’ says Flaatten. Beverly Smart is a buyer who attended the Expo for the first time this year. Smart, a fashion designer with a small boutique in the medieval town of Lagrasse, France, has for some years visited South Africa to source fashion accessories to complement her own ranges. She is not a bulk buyer. Her orders are for small quantities of quality, handmade items produced by crafters in Cape Town and KwaZulu-Natal, goods that come from ethical sources. ‘The world is hungry for handmade, personalised things that tell a story,’ Berman says. Smart agrees. ‘The back story of the accessory is the most important thing,’ she says. ‘I would never sell something made in a factory. My clientele are conscious of (a product’s origins). It must be made by a designer or a community group run on fair trade-type guidelines; they are very selective, there must be the sense that you will not find

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it elsewhere.’ Knowing her customers well, Smart is aware that the vibrant colours of some local merchandise would not appeal. She sidesteps this problem by sending her desired colourways for crafters to work from ensuring that, for example, a township-based beader from KwaZulu-Natal will produce pieces in the tones popular with a European audience. It is a win-win partnership. ‘International consumer trends are shifting towards fair trade and ethical fashion as opposed to fast fashion,’ says Cape Town Fashion Council CEO Bryan Ramkilawan, which has a strong presence at the Expo. ‘Our designers are in advantageous position to capitalize on this consumer shift as it suits our current manufacturing and production strengths. We are currently investigating export opportunities for our designers in Scandinavia, USA, Thailand, India, and South America. We are not excluding Africa is a key export market.’ One of the Expo’s most exciting aspects is developing new talent. The DTI provides an umbrella stand for mainly black, women-owned creatives to showcase their products. They supported 20 exhibitors in 2013. The Expo is seen as a ‘strategic trade event’; one of a number of platforms targeted by the DTI’s Market Access Programme. In addition, space for ‘emerging creatives’ is sponsored by the Department of Arts and Culture (DAC). ‘This gives new designers a platform besides their established peers,’ says Berman. Success can be dramatic. Laduma Ngxokolo, who uses geometric Xhosa beadwork designs in mohair menswear, launched as an emerging creative in 2011. In 2013, he returned as a full exhibitor. Andile Dyalvane, founder of Imiso Ceramics first exhibited a few pieces on someone else’s stand in 2004. By 2006, he was taking orders from international buyers at his own stand; today once-off pieces are advertised on his site for up to $6 000. ‘The Expo changes the way people look at you, it’s a prestige thing,’ he once told me. Emerging creatives also receive training to prepare them to be business ready; they are even briefed on the basics of import/export. They are meant to hit the ground running. ‘The emerging creatives programme identifies designers that show great potential and offers them opportunities to access markets and grow their businesses. The exposure provides a

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design indaba

proper platform to advance their talent, expand the network base and nurture their entrepreneurial skills levels and ultimately create jobs,’ a DAC spokesperson says. In 2012, 45% of emerging creatives had at least one job offer; sales and orders totalled well over R400 000 and 91% ‘made invaluable contact with local and international buyers.’ Government is committed to growing the design sector. In the 2012-2013 DAC strategic plan, Mzansi Golden Economy, Minister Paul Mashatile claims ‘significant strides in efforts to position the cultural and creative industries as one of the main drivers of economic growth and job creation in our country’. The sector’s potential has been well-documented internationally. In the UK, the creative industries contribute 6% of GDP, employ over 2 million people and export over £16 billion annually. In South Africa, figures are scarce. DAC has plans to establish a ‘cultural observatory’ that will gather such vital statistics, but has no figures as yet. Wesgro (the official Destination Marketing, Investment and Trade Promotion Agency for the Western Cape) has indicated that foreign direct investment in the creative industries from 2003 to 2011 was highest in Cape Town, at R1.8 billion, followed by R1.2 billion in Johannesburg and R465 million in Pretoria. Also, a study commissioned by the DTI in 2010 put the craft sector contribution towards the GDP at 0.14%. The Cape Craft and Design Institute, set up specifically to grow the craft industry, believes that 40 000 people from roadside wire artists to ceramic artists like those at Ardmore in KZN work in the SA craft sector. They contribute R2 billion a year to the economy. The CCDI’s objective of helping crafters learn business skills, improve product quality and access new markets is recognised by the DTI, which hopes to replicate its success in other provinces. ‘There has been huge growth in interest in SA design and handmade products over the last 10 years,’ says the CCDI’s Ryan Rode. ‘International markets see South African products

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as unique, innovative, quirky – even humorous. South African products also come with interesting stories about individuals and communities and how they use creativity to change their lives.’ Flaatten notes that big opportunities for investment in the design sector remain, not only in ‘softer’ design, but also areas like green energy. Africa and sub-Saharan Africa in particular, is set for dramatic growth in the next decade, and international companies will need to form African strategies to make the most of it. ‘The longer you leave it, the more crowded the space will become,’ he says. Starting partnerships with South African businesses is an excellent way in, and a springboard for moving into the continent. Despite all the progress, Rode does note that competitiveness remains an issue for SA businesses. Also, not all products are destined to meet the exacting criteria high-end design requires. Other markets can be found. Wesgro’s Flaatten notes growth in bulk product procurement for high street shops – and the immense US catalogue market. ‘Some of our top exporters – Monkeybiz, Veldt, Imiso (Ceramics), Wola Nani, Heath Nash, The Potter’s Workshop, Avoova, Kunye, Wonki Ware, Skinny LaMinx etc – their products all retain a unique flavour and character that is transferable into international markets – but they have had to be very smart about how they manage their businesses to maximize access to these markets and service their customers effectively,’ says Rode. This is indicative of the long list of achievers Rode mentions, just about all have had stands at the Design Indaba Expo over the past decade. It remains a formidable stepping stone to growth.

DESIGNER CONTACTS

Design Indaba Expo, held annually in late February/ March. Exhibitors are from most design fields, including décor, graphic design, advertising, film, music, fashion design, industrial design, architecture, craft, visual art, new media, publishing, radio and television and performing arts. See designindaba.com Department of Arts and Culture: dac.gov.za Department of Trade & Industry: thedti.gov.za Cape Craft & Design Institute (A central point through which buyers can access thousands of businesses. The CCDI also ‘matches buyers with appropriate crafters’. They will also facilitate applications to the dti for international pavilions.) ccdi.org.za Cape Town Fashion Council: ctfc.co.za Beverly Smart: beverlysmart.com Wesgro: wesgro.co.za

Inspire South Africa Issue 1


0 6 3 R E T SEN

Africa’s pivot of success

partner in irrigation l a t o v i p r – You

Company profile SENTER 360 is a South African company. We have a simple policy of doing business with the highest standards of integrity. We therefore pride ourselves on not merely selling a product, but building long term relationships. Designed and built in South Africa in 1994, SENTER 360 centre pivots are known for their superior construction quality and strength – above industry standards, and we as a company are renowned for excellent sales and after-sales service. We have been in the irrigation industry for more than 20 years, specialising in surveying, system design, installation and commissioning of irrigation systems. We have growing business interests in South Africa, Africa and internationally and offer a turn-key project development service from feasibility study phase to implementation and project management. One of our recent achievements has been the allocation of an international tender for the supply of more than 50 centre pivots to the South African Government for the Taung irrigation scheme.

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Africa’s pivot of success Since 1994

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export focus

South Africa’s rollercoaster agriculture sector

South Africa exported nearly R51 billion in agricultural products to countries in North America, Europe, Asia and into the rest of Africa in 2011. As world markets continue to suffer the effects of the global financial crisis, as well as droughts and food shortages, South Africa’s agricultural exports are poised to benefit; if only we remain focused on getting the basics right. By GAYE CROSSLEY & CARA BOUWER

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outh Africa has the most prolific agricultural industry on the African continent. The country is the largest maize producer and exporter in Africa and, according to the Rome-based Food and Agriculture Organisation, South Africa’s 2013 maize production may hit record levels, above 13 million tonnes — if favourable weather persists. Nonetheless, South African agriculture is facing some tough challenges. Land reforms continue to be a political minefield, creating uncertainty within the farming sector and there is growing pressure to get small-scale black farmers producing and becoming commercially viable. Another growing concern is the departure of big commercial farmers, who are being lured into more than 22 African, Asian and Eastern European countries to help build those nations fledgling agricultural industries. The exact numbers are hard to

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track, in part because Statistics South Africa stopped gathering data on emigration some years ago, but news reports talk of a handful of farmers emigrating to the former Soviet state of Georgia as well as the likes of Zambia, the Democratic Republic of Congo and Botswana. In 2012, Dirk Hanekom, Executive Head of AgriSAMoz, told TimesLive that about 950 South African farmers already had interests in Mozambique. Whether this is full-scale emigration or business diversification is hard to tell, but certainly South African farmers are recognising the massive potential that exists in underperforming agricultural sectors like Africa, which, once a net food exporter in the 1960s, is now a net food importer. As Future Advisory Chief Executive Officer Herman Singh told the Gordon Institute of Business Science’s recent 2013 Economic Outlook conference: ‘Many countries around the world are looking to Africa as the future breadbasket of the

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world.’ Agriculture is the third most dynamic sector contributing to Africa’s economic growth and yet, says Singh, ‘in West Africa, for example, only 1.1% of arable hectares are irrigated. The African food story is a stunning story.’ South Africa, with its robust and multi-faceted agricultural sector, is a key player in this African growth story. Primary agriculture contributes some 3.2% to South Africa’s gross domestic product (GDP) and officially represents about 7% of employment. Across its entire value chain, South African agriculture’s GDP footprint could be as high as 12%.

South Africa’s exports South African exports have grown steadily year-on-year, according to the Department of Agriculture’s Abstract of Agricultural Statistics 2012. The report, compiled by Stats SA, shows that the value of South Africa’s agricultural exports grew from R2.1 billion in 1980 to R4.6 billion in 1990, and from R15.8 billion in 2000 to R50.8 billion in 2011. In 2011, agricultural exports totalled 7% of the country’s total exports, a slight decline from 7.5% in 2000 and 7.9% in 2010. However, government statistics show that farmers are increasingly opting to export their produce, with the country’s exports as a percentage of total agricultural production soaring from 5% in 1988 to 46% in 2009. The European Union (EU) is one of South Africa’s strongest trading partners when it came to the supply of agricultural products. However, this market has shrunk as a result of the 2008 financial crisis. Writing in his latest newsletter, Dr John Purchase, CEO of South Africa’s Agricultural Business Chamber (Agbiz), says the Department of Trade and Industry and the industry need to ensure that they keep the channels of business open with the EU. He says that the ‘finalisation of a fair and enabling Economic Partnership Agreement will go some way to maintaining these markets, but the recent proliferation of private standards and non-tariff trade barriers poses added challenges and exports to the EU have declined in reals terms in the past year.’ Although exports to the EU have fallen, the outlook is positive for South African agricultural exports flowing into African countries such as Angola, Zimbabwe, Mozambique and Mauritius, all of which have seen significant increases in trade since 2008. Purchase says that despite Africa’s growth coming off a relatively low base, the continent’s middle-class consumer boom will provide large and fast-growing markets for South African agribusiness. ‘Demand and consumption patterns of food constantly growing and shifting fairly dramatically,’ stresses Purchase. In years to come, Africa’s booming population – which is projected to hit 1.2 billion by 2020, will provide an additional growth market for South African farmers. In the Far East, Hong Kong and South Korea are also seeing a lot more South African produce hitting their shelves. Again, this is a consumer market to be cultivated, says Purchase. He

stresses that a growing Asian market will increasingly turn to Sub-Saharan Africa and South America for new food sources as these areas have the land and the water sources to service that region’s growing food demands. Already, on a global level, South Africa ranks as a significant player in global food supply-chain. The country is the world’s biggest producer of grapefruit juice and confectionary sugar; ranks fourth in terms of corn germs and citrus juice; is the fifth biggest supplier of chicory root, raisons, vegetable juice and corn meal; and is the sixth biggest producer of dry apricots and orange juice concentrate.

Pockets (and provinces) of excellence Certainly, pockets of excellence exist in the South African agricultural sector and while the potential and long-term prospects for even greater success are evident, it is vital that the country tackles some hard issues, encourages agriculture across all provinces and adopts a strategic plan for future growth and development. Currently, the situation is skewed with six out of the country’s 10 top exports (which account for just under 50% of total agricultural exports) coming from just two provinces: the Western Cape and Mpumalanga. For both of these regions, fruit exports alone total around R12 billion a year and demand from new markets, such as Russia, South and East Asia and the rest of Africa, is certainly growing. Earlier this year, however, the Western Cape (by far the bigger of South Africa’s two fruitgrowing regions) was affected by farm worker unrest. Alan Winde, the Western Cape’s Minister of Finance, Economic Development and Tourism, addressed the impact in his provincial budget speech which he delivered on 7 March 2013. ‘Agriculture is a key driver of our regional economy,’ said Winde. ‘It accounted for 22.6% of the national economy’s value, added in this sector in 2011. The violent labour protests in late 2012 and early 2013 will have negative implications for

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production over that period. In addition, the 52% increase in minimum wages for farmworkers, which came into effect on the 1st of March 2013, could result in the loss of jobs and more rapid mechanisation of the farming process — a major setback for our rural areas.’ Over and above concerns that the strikes may impact on the quantity and quality of the produce being exported, there are fears that South Africa’s reputation as a reliable exporter may also have been damaged. This could see customers looking to competitor countries, such as Chili, for future supply. Pieter du Toit, Managing Director of Du Toit Group, one of South Africa’s largest farming companies whose clients include ASDA in the UK and Edeka Zentrale in Germany told news agency Bloomberg: ‘I think they are spreading their risk to ensure supply. We will make mechanization a high priority.’ As Winde’s comments attest, how this approach tallies with South Africa’s National Development Plan (NDP), and the focus on rural development and job creation, is a critical point which has yet to be addressed head-on by agriculture and government.

along with fuel and electricity increases, will drive the cost of production up and cause food price inflation. For 2013, food price inflation is expected to reach around 9%. Purchase believes that in order for government to stabilise the agricultural sector, it is essential to build investor confidence. The NDP, if effectively implemented, should go a long way in offering investors greater certainty about the country’s future, but Purchase says that government needs to work on soothing the country’s heated labour relations, continue investing in infrastructure, ensure municipal and provincial governments improve service delivery, build skills and root out corruption. Focusing on these key areas will, says Purchase, ‘greatly enhance business confidence and should be the focus of government, business and labour in 2013.’ ‘While there is much to be done for these long-term fundamentals, currently, South African exports could expect a positive year ahead. Grain and oil seed stocks are down globally and international prices remain high. Droughts in the Ukraine, the US and Argentina have also not helped the supply of these products. Therefore, Purchase believes prices for these commodities are expected to remain high throughout 2013. The financial crunch has slowed down demand for luxury goods and South Africa’s horticultural industry, in particular, is feeling that pinch; which has also not been helped by labour unrest or by fuel and power hikes. The wine industry too has seen demand dip in developed countries; and cheeky moves such as that by the UK to import unbottled South African wine ‘in bulk’ has caused ripples in Cabinet due to the potentially negative effects on the industry. From 2011 to 2012, approximately 52% of South Africa’s certified wine was exported in bulk. Only 35% was exported in this fashion in 2006. Purchase believes that innovation, new markets and the adoption of new techniques to increase productivity are key themes to watch in the year ahead. These points, he feels, will differentiate great farmers from the pack in this challenging, but not impossible local and global environment.

“South Africa, with

its robust and multi-

faceted agricultural sector, is a key player in this African growth story”

South Africa: Outlook 2013 In spite of political questions and the effects of the labour relations crisis, Purchase believes there is still cause to be buoyant about South Africa’s agricultural industry. First and foremost one must acknowledge that South African commodity prices are deeply intertwined with developments around the globe. Purchase further mentions that ‘Commodity prices, especially for important crops like maize, often oscillate between export and import parity depending on the supply and demand situation.’ He advises sellers, and of course buyers, to keep a close eye on markets and make sure they adopt adequate hedging strategies to protect themselves from downward trends. Pricing fluctuations are not the only financial risk facing farmers in 2013. South Africa’s lower-than-projected GDP figures, a growing GDP-to-debt ratio and the widening of the current account deficit (which now sits at around 6%) are putting pressure on the value of the rand, which plunged to its weakest level since April 2009 on 7 March 2013 when it touched on R9.18 to the US dollar. The impact, attributed to labour unrest in the mining sector, may be positive for exporters but will also hurt farmers through the fuel price and the added cost of other imported supplies. Ultimately, such fluctuations,

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A case of net losses from positive gains Rooibos tea, a uniquely South African product and one which many consider to be the country’s national drink, has seen export figures grow substantially in the first 10 years of this century. From R38.1 billion in exports between 2000 and 2001,

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Rooibos now accounts for almost R89.9 billion in exports. It is a South African farming success story. Success sometimes brings unintended consequences, as so it has been with Rooibos. The product’s popularity first caused problems in 1994 when South African Annique Theron’s company, Forever Young, filed a trademark application for the word ‘Rooibos’ in terms of skincare use in the US. In 2001, Theron sold the trademark to her American agent, Burke International, for just $10. After numerous petitions and lawsuits, the matter was eventually settled out of court in 2005 and the name ‘Rooibos’ was surrendered back to the public domain; and free for anyone to use. Perhaps motivated by this trademark fight, in 2008, the Intellectual Property Laws Amendment Bill was submitted to Parliament. In part the Bill aimed to recognise the importance of geographical indicators which, says the World Intellectual Property Organisation, indicates a product’s specific geographic place of origin. The Bill is yet to be passed into law. Currently, a French company is trying to register ‘Rooibos’ as a geographical indication trademark. According to patent and trademark attorneys Smit & Van Wyk, if South Africa does not register a geographical indicator for Rooibos, the French coup may well prove successful. That said, a Sunday Times article on the subject does note that the South African Rooibos Council has applied to register Rooibos as a Certification Mark in terms of the South African Trade Marks Act. This process is, it seems, a rung on the ladder towards receiving international geographical indicator protection. According to Rob Davies, Minister of Trade and Industry, in his report to Fin24 in February ‘The Department of Trade and Industry stands ready to defend South Africa’s trade and intellectual property interests vigorously. However, the issues in this particular matter will require an urgent assessment of the legal options to strengthen protection of the Rooibos name in South Africa. This is not the first time a foreign firm has attempted to capture the intellectual property associated with Rooibos.’

Time to get brand savvy? Another case of South Africa dropping the trademark ball relates to the country’s national flower, the Protea. Although South Africa still exports about 50% of the world’s supply of Proteas, according to South African Flower Export Council, this crown is being threatened by Australia’s booming industry. Unless South Africa develops these ‘niche’ industries, the Protea risks going the way of other indigenous species, like the Gerbera, or Barberton daisy, which is grown commercially by farmers in the US, Japan, New Zealand and the Netherlands but receives no financial support or incentives locally. Speaking at a recent conference in Johannesburg, Jeremy Sampson, CEO of leading brand consultancy Interbrand Sampson, said countries should be paying more attention to

their indigenous brands and building these into industries and commercial propositions. Part of the problem facing lumbering government bureaucracy is the pace at which the world and global brands are moving. ‘Often I think the politicians are incredibly naïve, they just don’t understand,’ said Sampson. ‘Mark Twain said, some 150 years ago, that a lie goes around the world before the truth has got it shoes on. Today if you tweet something it flies around the world.’ This instant, global village, is challenging the way we do business, enact laws and safeguard our products and legacy. ‘Fifteen years ago, people were approaching us to take brands regionally, into SADC. Today, with the internet, you can go instantly global. I think that’s where things have changed. But there is still a mentality that lags behind that doesn’t realise that once you have a name you must register it; is it a company is it a trademark? These are basic things and this is where a lot of African countries haven’t done the basic things. If you haven’t trademarked something you don’t own it. You don’t have a brand. It’s as basic and brutal as that,’ says Sampson. ‘Look at Rooibos at the moment, the French are claiming it. There are lots of brands that have been created in Africa but people haven’t had the foresight – or perhaps not the money or the guidance – and others are saying “well, that’s ours”. Marketing is war. That’s the reality.’ While the worlds of marketing and agriculture may seem light-years apart, lessons like that of Rooibos serve as a reminder of how interlinked today’s world economy truly is. Modern farmers no longer tend just the earth; they are integral to GDP growth, custodians of indigenous brands and vital exporters. Theirs is a vital role; and one which South Africa and Africa must nurture for decades to come.

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About Brand South Africa Brand South Africa has a mandate to build South Africa’s reputation to improve international competitiveness. While this has an internationally focussed element – to promote trade, tourism and particularly investment - it also works domestically to encourage pride, patriotism and active citizenship to achieve greater social cohesion. Brand South Africa’s goal is to be acknowledged as a Top 20 Nation Brand, and to make South Africa a Top 30 Nation in the World Economic Forum’s Global Competitive Index, by 2020. To find out more visit www.brandsouthafrica.com and www.southafrica.info


South Africa: Inspiring New Ways as a partner and participant in the African growth story A decade ago, The Economist spoke of Africa as “The Hopeless Continent”. But in its 2011 December issue, the cover story of the magazine spoke of Africa as “The Hopeful Continent”. With a new world order characterised by stagnant European economies, constrained American growth and the growing power of the developing world, South Africa is uniquely positioned to service and connect these global markets. As the global economy changes so too are South Africa’s trade patterns with increasing imports and exports amongst BRICS members and the African continent. According to IMF projections seven of the ten fastest growing economies in the world between 2010 and 2015 will be African. And, the average growth for Sub-Saharan Africa for the next five years is expected to be 5.5% – second only to Asia. As a partner for growing African economies and those wishing to invest and trade with them, South Africa’s competitive advantages include the quality of our institutions; strong intellectual property protection and accountability of private institutions; and a stable and well-regulated financial sector. While confidence in the integrity of global markets is reeling, South Africa’s financial market development was ranked 4th globally in the 2011/12 World Economic Forum’s (WEF) Global Competitiveness Index, indicating a high level of confidence. The Johannesburg Stock Exchange is by far the largest exchange in Africa and the regulation of the JSE is rated number 1 in the world by the WEF. Likewise the WEF rate’s South Africa 1st for the strength of its auditing and

reporting standards; 2nd in soundness of banks and for the efficacy of corporate boards; and 3rd in protection of minority shareholders’ interests and for the availability of financial services. The list of excellent rankings in these areas goes on, but collectively they make one powerful statement: our professionals are some of the most respected in the world. We have lawyers, bankers, regulators, management consultants, engineers, managers and chartered accountants who support investment into South Africa and the continent. South Africa offers investors well-established infrastructure to support imports, exports and business transactions. The recently announced massive investments into new rail, road, ports and water capacity will not only improve access to South Africa’s mineral resources and industrial heartland, but also enhance the links with the rest of the continent to both generate and benefit from the region’s growth potential. In this regard we have taken responsibility for developing continental north-south rail and road links, and have been championing infrastructure investment, skills development and the enabling regulatory environment – a single free-trade zone. Negotiations are currently underway to establish a 26 country, $1 trillion African Free Trade Area for Eastern, Southern and Central Africa by 2014. This will effectively expand South Africa’s market from 50 million to 600 million people – placing us in the same ball park as our BRICS partners in terms of market size and access.


land reform

south africa to speed up

land reform With South Africa set to mark the centenary of the notorious 1913 Land Act this year, the government is taking a number of steps to speed up land reform, including a shift from the ‘willing buyer, willing seller’ to the ‘just and equitable’ principle for compensation for land acquired by the state.

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n his State of the Nation Address to Parliament on 14 February 2013, President Jacob Zuma announced that government would now pursue the ‘just and equitable’ principle set out in the Constitution, instead of the ‘willing buyer, willing seller’ principle which forces the state to pay more for land than its actual value. Zuma also proposed amendments to the Restitution of Land Rights Act to provide for the re-opening of the lodgement of restitution claims by people who missed the 31 December 1998 deadline. ‘Also to be explored are exceptions to the June 1913 cut-off date (i.e., claims for land confiscated before 1913) to accommodate claims by the descendants of the Khoi and San as well as heritage sites and historical landmarks.’ Zuma said the government would also need to provide better incentives for commercial farmers that were willing to mentor smallholder farmers.

Land redistribution Speaking during the debate on Zuma’s State of the Nation Address in Parliament last week, Gugile Nkwinti, Minister of Rural Development and Land Reform, said farms transferred to black people through various redistribution programmes, from 1994 until January 2013, amounted to 4 813 farms. This translated to 4.123 million hectares, benefiting 230 886 people. He said that a total of 50 440 beneficiaries were women (1.7 million hectares in the hands of women), while 32 563 were young people, and 674 were people with disabilities. Nkwinti said the state had spent R12.9 billion on land. Of the 4.123 million hectares acquired, the government had, since

2010, recapitalised 696 farms into full operation, employing 4 982 permanent workers and investing R1.8 billion in infrastructure, inputs and strategic support. Of the 696 recapitalised farms, he said 332 were cropping and 364 were livestock farms. The gross income generated by these farms, as of 31 January 2013, was R126 million.

Land restitution ‘Land acquired by the state for the restitution of land rights, since the inception of the programme (in 1995), amounts to 4 001 land parcels, translating into 1.443 million hectares,’ Nkwinti said. ‘Of these beneficiaries, 136 968 are female-headed households, and 672 persons with disability have benefited. A total of R16 billion has been spent on the programme thus far. This in settling 77 148 claims; R10 billion for land acquisition, and R6 billion for 71 292 financial compensation claims.’ Nkwinti said the 5 856 settled claims, translating into 1.443 million hectares, was land restored. He said this clearly illustrated that claimants had chosen financial compensation over land restoration, which was a reflection of poverty and unemployment. Nkwinti said a team of lawyers was working on the re-opening of land claims and addition of claims for land confiscated before 1913. The re-opening of lodgement of claims would take place once amendments to the Restitution of Land Rights Act had been signed into law by President Zuma. Source: SAnews.gov.za

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South African top 11 export trading partners in 2011

South Africa’s top 10 exports in 2011 in descending order

Source: Statistics SA

Source: Statistics SA

South Africa on the world stage: how we measure up

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endurance sport

south africa’s

endurance sport love affair

It’s no wonder that South Africans love long-distance challenges, the country’s climate and contrasting landscape is ideal for endurance sport activities writes Brad Morgan.

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hether on land or in water, South Africans love testing their endurance ability and an ever-increasing number of people from overseas have discovered the fantastic events that the country has to offer and are participating in them.Learn about some of the challenges that South Africans hold dear. Among them are a good number of world leading events:

On foot Endurance running, which is widely supported throughout South Africa, is a discipline ideally suited to the country’s varied and beautiful landscape. It is highlighted by two ultra-marathons, both of them world-renowned events.

The Comrades Marathon The Comrades Marathon is run annually between the capital of KwaZulu-Natal, Pietermaritzburg, and the balmy coastal city of Durban. The distance can vary slightly from year to year, but it usually is in the region of 90 kilometres. The race attracts approximately 13 000 runners, and the route is lined by great numbers of cheering supporters. The biggest entry in the history of the Comrades Marathon occurred in 2000, when the race celebrated its 75th anniversary. An extra hour was allowed for bronze medal finishers to celebrate the milestone and the public responded in incredible fashion with the field topping out at 23 961. Since the introduction of prize money, the Comrades has also drawn some of the world’s top ultra-distance athletes.

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The undoubted King of the Comrades, though, is South Africa’s Bruce Fordyce, who won the gruelling race an astounding nine times between 1981 and 1990. In recent times, runners from overseas have also claimed their share of victories, including Vladimir Kotov winning the up run from Durban to Pietermaritzburg three times in succession, but no one has managed in any way to duplicate the successes of Fordyce in both directions. The popularity of the Comrades is based largely on some dramatic finishes over the years. But it is not the race for the title that provides the drama as much as the struggle for the also-rans, right at the end of the race, to cross the finish line before the cut-off gun sounds for medals. Special mention should be made of Isavel Roche-Kelly, who became the first woman to win a silver medal in 1980. More than that, however, she also won the Cape Argus Pick ‘n Pay Cycle Tour in 1984, making her the only woman to achieve the unique double of victories in the Comrades and the Cycle Tour.

The Two Oceans Marathon South Africa’s second ultra-popular ultra-marathon is the 56-kilometre Two Oceans Marathon. Its greatest draw card is an extremely picturesque route that winds along the coastline surrounding Cape Town. The Two Oceans, like the Comrades, also manages to pull top professionals from overseas. Zimbabwean men have enjoyed good success in recent years, being the dominant runners in the event since 2001, including Marco Mambo being crowned champion in 2004, 2005 and 2008. The women’s race has succeeded in drawing many of the top female athletes preparing for the Comrades Marathon, which takes place just over a month after the Two Oceans, and as a result has produced winners who have gone on to Comrades’ victory. They include Elena and Olesya Nurgalieva and Tatyana Zhirkova.

On wheels The Cape Argus Pick ‘n Pay Cycle Tour Cycling is a very well-supported family-oriented sport, and South Africa boasts the world’s largest individually time event, the Cape Argus Pick ‘n Pay Cycle Tour.

Like the Two Oceans Marathon, it is raced around the Cape Peninsula. In recent years it has drawn an increasing number of overseas cyclists, and it forms part of the International Cycling Union’s prestigious Golden Bike Series. The event at one stage formed part of the now defunct Giro Del Capo, a professional tour event, which ended with the Cycle Tour, and thus drew professional teams from South Africa and from abroad. Robbie Hunter, the first South African to win a stage of the Tour de France, the most famous cycle race in the world, has won the race on a number of occasions. The Laureus Foundation has used the Cycle Tour to raise funds for sport in South Africa, drawing big names to help boost the profile of the event, including Miguel Indurain, a five-time

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winner of the Tour de France, decathlon star Daley Thompson and rugby legend Hugo Porta. Even seven-time Tour de France champion Lance Armstrong has taken part in the event, along with Stephen Roche, the winner of the 1987 Tour de France, and Jan Ullrich the 1997 Tour de France champion. The man many regard as the greatest cyclist of all time, Eddy Merckx (five Tour de France wins, five Giro d’Italia victories, one Vuelta a España win, and three World Championship titles) has also taken part in the Argus. Overseas interest in the race continues to grow and in 2006 it topped 2 000 entrants for the first time, including competitors from Africa, North America, South America, Asia, Australasia, the Middle East, Europe, and the United Kingdom.

“I’ve never seen anything like it: the number of swimmers, the crowds, the organisation, and the beautiful setting.”

The Momentum 94.7 Cycle Challenge The Voice of Cycling, Phil Liggett, is a huge fan of the event, and also loves the Momentum 94.7 Cycle Challenge, another mass-participation cycle race that takes place in Johannesburg. The race has been recognised by cycling’s world governing body, the UCI, as a model to the cycling world, and it continues to show fantastic growth. The aim of the organisers is that the size of the Cycle Challenge’s entry should eventually eclipse that of the Cape Argus Pick ‘n Pay Cycle Tour. In 2007, the Cycle Challenge became the first event to attract Eddy Merckx to South Africa. Nicknamed ‘The Cannibal’ because of his hunger to win every race he entered, Merckx was named the UCI Cyclist of the Twentieth Century. He was named Belgium’s Athlete of the Century, and he was voted World Sportsman of the Year three times.

The Absa Cape Epic The Absa Cape Epic is truly an epic challenge, covering eight

stages of extremely testing terrain. It covers roughly 700 kilometres, but any images one might have one open roads and flat riding should be dispelled very quickly. The Epic is a supreme challenge and it attracts both the casual competitor and the world’s best mountain bike endurance racers. It is also the world’s most broadcast mountain bike event. By March 2009, it had generated 8 000 hours of television in Europe, America, the Middle East and Africa.

The Subaru Sani 2C Among the mountain bike community, another event that is held in high esteem is the Subaru Sani 2C. It has been voted the best MTB race in South Africa by many different publications on a number of occasions. It is a three-day event, covering about 260 kilometres, that starts at Underberg in the Drakensberg Mountains and sweeps all the way down to the KwaZulu-Natal coast at Scottburgh. Competitors love the Sani 2C’s course; it is a challenging mix of surfaces, climbs and descents, and scenery that tests and exhilirates competitors. Like the Absa Cape Epic, it attracts the cream of South Africa’s mountain bike racers, as well as top overseas stars.

On and in water The Hansa Powerade Dusi Canoe Marathon Off of land, the Dusi Canoe Marathon is a three-day challenge that requires remarkable stamina. It is not just about canoeing, but running too, and that with a canoe on one’s shoulders. Plenty of portaging means that good running is a requirement to do well. The Dusi pulls about 2 000 competitors annually, but overseas contestants tend to shy away from it because of the high premium it places on running. The race is synonymous with Graeme Pope-Ellis, a man known as the Dusi King. From 1972 to 1990, he won it an

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astonishing 15 times and placed second on three occasions. Only a broken boat in 1979 had prevented him from achieving another top-two finish.

The Hansa Powerade Fish Canoe Marathon The Fish River Canoe Marathon, however, does draw some of the world’s top marathon paddlers. It takes place over two days, starting in the Eastern Cape Town of Cradock. In 2006, the event had its first ever international winners when the Czech combination of Michala Mruzkova and Katarina Vacikova claimed the women’s title in record-setting fashion. South Africans, though, are among the best canoe marathon paddlers in the world and are tough to beat. This is borne out by the fact that Hank McGregor won the K1 Canoe Marathon World Championship title in 2003 and 2011, while Shaun Rubenstein landed the title in 2006. In 2008, Ant Stott and Cam Schoeman teamed up to win the K2 Canoe Marathon World Championship title in the Czech Republic. Interestingly, both paddlers attended the same school — Maritzburg College.

The Berg River Canoe Marathon The Berg River Canoe Marathon is regarded by many as the world’s toughest canoe marathon. It features four stages and covers about 230 kilometres. Andre Collins and Giel van Deventer completed the event for a 40th time in 2011. Eight-time champion Hank McGregor, the 2003 and 2011 World Marathon K1 champion, believes the Berg is definitely the world’s toughest race.

The Midmar Mile South Africa is also home to the world’s largest swimming event, the Midmar Mile, which has been recognised as such by Guinness World Records. The number of entries has rapidly accelerated well past the 10 000 mark, topping 16 000 by 2003. It is so popular that it is now swum over two days. Former winners include some big names in the world of swimming, such as Ryk Neethling, a previous winner of the FINA World Cup swimming series and an Olympic gold medal winner in the 4 by 100 freestyle relay, as well as Germany’s Jorg Hoffman, a former world champion over 400 metres and 1 500 metres, and Terence Parkin, the winner of silver in the 200 metres breaststroke at the Sydney Olympics. Johannesburg-born Keri-Anne Payne, a seven-time winner of the women’s race, finished second in the 10-kilometre open water swim in Beijing, and is a two-time world champion. Sam Greetham attended the Midmar Mile in 2005, when the entry was 17 050 swimmers, as a member of swimming world governing body Fina’s open water swimming technical committee. He was blown away. ‘Nothing I have seen comes anywhere near the Midmar Mile’, Greetham said. ‘Both in terms of the number of participants, tip-top organisation, security and safety aspects, and the interaction between the participants and the public.’ Greetham helped design the 10-kilometre open water course for the Beijing Olympics, and he will also design the course for the 2012 Olympics in London. His view was echoed by German star Nadine Pastor, the runner-up in 2009, who reckoned, ‘Honestly,’ she said, ‘I’ve never seen anything like it: the number of swimmers, the crowds, the organisation, and the beautiful setting.’ In 2011, former 25-kilometre open water world champion and coach of the USA’s national team at numerous open water World Championships, Steve Munatones said, ‘It sets the worldwide bar in every category.’ Source: SAnews.gov.za

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afcon

afcon inspires lasting effects for sa

‘We were quite hopeful that AFCON will be hosted and delivered in accordance with our defined broad objectives.’

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By stefan lotter

he recent African Cup of Nations (AFCON) Football Tournament might have gone by as quickly as it came, but the positive effects it left on South Africa might last much longer as it set the platform for greater growth to come

for the hosting team and country. Although it was Nigeria who won when the tournament concluded on 10 February 2013, it is still South Africa who keeps on winning with the aftermath of the AFCON 2013. Bafana Bafana started their AFCON 2013 with an unlucky

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draw against the Cape Verde Islands during an opening match in front of 50 000 supporters at the National Stadium in Soweto. Yet, beating Angola 2-0 saw new fire in the South African side that progressed to the play-offs. Unfortunately, the team then fell short against Mali in the quarter final fixture at the Moses Mabhida Stadium, leaving the hopes of a hosting side to conquer the cup in shambles. Even still, the performance of Bafana Bafana during this AFCON tournament has seen them jump 25 places up to number 60 in the FIFA world rankings. Coach Gorden Igesund’s boys also ranked among the top ten squads in Africa after their lively AFCON tournament. In retrospect, AFCON 2013 gave back that glimmer of hope that Bafana Bafana had on their horizon after the 2010 FIFA World Cup, thus regaining some confidence. Not only did AFCON 2013 bear gifts for South Africa’s national side, but according to Sipho Sithole, the local

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organising committee member for AFCON 2013, the tournament had a great impact on football and sports in general in the country. ‘There were a few positives,’ says Sithole. ‘Up to 300 000 Adidas Soccer balls were distributed to participating schools throughout the country.’ This added a vast incline to the interest and development of football. Not only were the matches watched on television and supported in stadiums, but football was also being physically promoted among the youth of the nation. Obviously more interest in a certain sport can be generated when one of its most important tournaments is hosted in one’s country. In South Africa, on sport in general, there were also other intangible benefits pertaining to the use of football as a vehicle for socio-economic development. According to Sithole, ‘Four Social Causes were identified by the Confederation of African Football (CAF) to advance key messages and address other

Inspire South Africa Issue 1


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societal issues, such as HIV/AIDS with UNAids, Education the supporters had a chance to visit historical and heritage with 1Goal, Peace with the African Union and Malaria with sites and attractions. They also got a good taste of the top South United Against Malaria. The tournament was used to highlight African restaurants, and therewith experienced the urban night these social causes as well as create awareness.’ Hence, the life that our country’s cities have on offer. The rich history of development of sports in South Africa that was promoted during the country’s democratic roots and struggles therefore adds AFCON left lasting effects on community service. The reason to a return trip to the rainbow nation. awareness created for the above mentioned causes will also lead Also, the closing ceremony included musical performances to better support for the causes, both financially and in terms of from some of Africa’s finest musicians like Yvonne Chaka man power, but it should also lead to the everyday man and Chaka, D’Banj from Nigeria, Muthoni from Kenya, and many woman being able to address these societal issues in his or her others. The publicity that these artists received from just personal life every day. Sithole further adds that ‘We were quite performing at the AFCON closure will therefore not only hopeful that AFCON will be benefit South African artists, hosted and delivered in but also performers in the rest accordance with our defined of the continent, opening the broad objectives.’ international eye to scout more In terms of the support from African talent. local fans, the turnout was also Nigeria’s conquest of the extremely positive during the winning trophy added an AFCON 2013 tournament. unmentionably valuable bonus “Not only did AFCON Sithole says that ‘South Africans for South African Tourism. For a came out in numbers to support 2013 come bearing gifts decade now, our tourism industry the tournament and a new has been hard at work in trying to benchmark was set in terms of attract Nigerians to visit South for South Africa’s record attendance.’ But what Africa, who bring more business then did AFCON 2013 achieve opportunities along with them. national side……. for the tourism business in South And the tourism industry’s efforts the tournament had Africa? Well, according to Sithole, have paid off. over 150 000 tourists were According to Dhlomo, South a great impact on estimated to have visited South Africa achieved a 16.6% increase Africa during the tournament. in arrival figures for the period of football and sports And this likely leaves many more January to October 2012 and his to come. Once a tourist visits hopes for the next sector are high in general in the South Africa, he or she is bound as well. ‘With the number of to come back. The same was clear Nigerians who came to support country”. to be seen after the World Cup the Super Eagles in South Africa three years ago. during AFCON 2013, the The final match at the numbers will grow even further,’ National Stadium, where Nigeria says Dhlomo. beat Burkina Faso 1-0, had an Furthermore, the CAF was exciting crowd of 85 000 thrilled with the outcome of supporting the tournament conclusion and all festivity along AFCON 2013 and gave praise to South Africa for organising with it. Naturally these supporters were not all South African such a successful tournament. This may lead to our country and during that week alone the country enjoyed entertaining to playing host many times again in the near future. Shortly a large number of visitors. after the AFCON 2013, CAF Secretary-General Hicham El On southafrica.net, Phumi Dhlomo, Regional Director of Amrani said to local press that as CAF, they were satisfied South African Tourism, said that AFCON 2013 set the perfect with the progress of the tournament and they were satisfied stage for South Africans to give international visitors from other with the infrastructure as well as the support from the South parts of the continent a healthy dose of home-grown hospitality. African government. Dhlomo said many tourists not only came for football, but Therefore, the AFCON 2013 left South Africa much richer also had the opportunity to visit the sights and attractions of than it found us, which should, if anything, lead to government the country. officials, street vendors, tour guides and all other citizens to be Since Johannesburg was host to the final match, a lot of greatly inspired for many more amazing things to come!

Inspire South Africa Issue 1

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Inspire SA Issue 1  

Inspire South Africa is a quarterly magazine that promotes trade and investment opportunities in different sectors. With a print run of 15 0...