SA Business integrator - September 2017 - February 2018

South African Business Integrator

South African Business Integrator

Issue 6

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N September 2017/February 2018

September 2017 / February 2018

Myers Attorneys:

Great service, great results

Clay bricks: Star performers in sustainability

China makes inroads into

Food security:

African energy www.sabusinessintegrator.co.za

sabusinessintegrator.co.za

The staggering statistics COVER STORY

Freedom Park:

The voice of our nation

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Contents n Cover story: Freedom Park: the voice

n Marketing & communication:

of our nation................................................................................. 9

Are we ready for POPI?......................................................... 58

n Agriculture: Hard graft pays off............................14 n Corporate governance:

n Market research: 10 Ways drones can improve your business.................................................... 60

Reducing social inequality......................................................16

n Marine & maritime: Addressing marine

n Construction & engineering:

waste in Africa...........................................................................62

Clay bricks: star performers in sustainability......................18

n Corporate social investment: A responsible growth strategy...............................................22

n Energy: Powered by platinum....................................24 n Advertorial: National Cleaner Production Centre South Africa..................................................................26

n Advertorial: Bowline Security...............................28 n Entrepreneurs: What entrepreneurs wish they’d known when they started out.......................... 30

n Environment & sustainability: Food security: the staggering statistics.............................. 34 Identifying areas for meaningful sustainability................... 36

n Finance: Does cash flow stand in the way of African expansion for SMEs?.............................................................. 38 n Human resources: Can you afford not to be a leader?.................................................................. 40

n Advertorial: South African Wood Preservers Association........................................................... 44

n Information technology: Securing your growing home network................................ 46

n Infrastructure development:

n Mining: Mining for tomorrow....................................... 64 n Advertorial: National Institute for Occupational Health............................................................... 66 n Oil & gas: China makes inroads into African energy........................................................................... 69 n Purchasing & procurement: Tender process for the tough-minded..................................72

n Property & real estate: Wine overtakes classic cars on Luxury Investment Index..............................74 n Advertorial: VMQ Property Services..................76 n Retail: South African shoppers influenced by clicks and bricks..................................................................77 n Risk management & consulting: Next generation liability risks..................................................79

n Advertorial: Fleet Data Technologies................. 80 n Science & technology: Three steps towards customer experience enhancements....................82 n Skills development & training: Workplace learning: the key to SA’s progress.................. 84

WorleyParsons rolls out ESD programme......................... 48

n Advertorial: Tshwane South TVET College.......85

n Insurance: Business after junk: insurance has never been more important............................................ 50

n Supply chain & procurement:

n Advertorial: The Royal Institution of Chartered Surveyors South Africa...................................52

n Advertorial: Gauteng Partnership Fund............ 88

n Investment: Hedge funds 101................................53 n Legal: Great service, great results..............................55

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Improving growth in uncertain times................................... 86

n TOURISM: Growing loyalty and revenue for Cape tourism...................................................................... 90 Inspiring change with 67 days of training............................92

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South African Business Integrator

South African Business Integrator

Publisher

Issue 6

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N September 2017/February 2018

September 2017 / February 2018

Media XPOSE excellence in exposure Tel: +27 21 424 3625 | Fax: +27 86 516 7277 PO Box 15165, Vlaeberg, 8018

Myers Attorneys:

Publishing Director: Elroy van Heerden elroy@sabusinessintegrator.co.za

Great service, great results

Editor Emma Dawson editor@sabusinessintegrator.co.za

Clay bricks: Star performers in sustainability

Food security:

The staggering statistics

Mining

for tomorrow www.sabusinessintegrator.co.za

sabusinessintegrator.co.za

COVER STORY

Freedom Park:

The voice of our nation

Current Affairs I Economic Development I Business Integration

Photography: Ivy & Rose, Melissa Kay den Dunnen

Editorial Contributors Brian Eagar Danny Bryer Gareth Paterson George Herman Gugu Mjadu Joshia Montsho Julius Mojapelo Kevin Vlietman Khutso Sekgota MornĂŠ Stoltz Paul Williams Wynand Smit Marketing & Communications Manager Sarina Afonso sarina@mediaxpose.co.za Content Manager Melanie Taylor artwork@mediaxpose.co.za Online advertising consultant Maurisha Niewenhuys marketing@mediaxpose.co.za

Pictures: 123rf.com

South African Business Integrator @SA_Business_Mag

Design & Layout CDC Design carla@cdcdesign.co.za Advertising Sales Consultants Micheal Makhawu micheal@sabusinessintegrator.co.za Rashiedah Wyngaardt rashiedah@sabusinessintegrator.co.za Chief Financial Officer Shaun Mays shaun@mediaxpose.co.za Distribution/Subscriptions Janine Mays distribution@mediaxpose.co.za

South African Business Integrator A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

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Disclaimer: The views expressed in this publication are not necessarily those of the publisher or its agents. While every effort has been made to ensure the accuracy of the information published, the publisher does not accept responsibility for any error or omission contained herein.

Consequently, no person connected with the publication of this journal will be liable for any loss or damage sustained by any reader as a result of action following statements or opinions expressed herein. The publisher will give consideration to all material submitted, but does not take responsibility for damage or its safe return.

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Editor’s L E T T E R

Celebrating our joint heritage

“

It is a great joy for me that we can all come as free South Africans, with our friends, to Robben Island; and even more that we are gathered to celebrate our joint heritage as a nation, to acknowledge this heritage in the context of our commitment to democracy, tolerance and human rights.”

– Nelson Mandela, Heritage Day, September 24, 1997.

In 1997, during his address on Heritage Day at Robben Island, Nelson Mandela said: ‘It is a great joy for me that we can all come as free South Africans, with our friends, to Robben Island; and even more that we are gathered to celebrate our joint heritage as a nation, to acknowledge this heritage in the context of our commitment to democracy, tolerance and human rights’.

He noted that during colonial and apartheid times, our museums and monuments reflected the experiences and political ideals of a minority to the exclusion of others.

He commented: ‘Most people had little or no say in the depiction of their history in textbooks, libraries, or research institutions…’

About our museums, he added: ‘…all but a handful (3%) represented the kind of heritage which glorified mainly white and colonial history… Having excluded and marginalised most of our people, is it surprising that our museums and national monuments are often seen as alien spaces? How many of our people have visited the country’s museums? How many have gone to see one of our monuments?’ In other countries, he noted, such places throng with citizens.

‘Our cultural institutions cannot stand apart from our Constitution and our Bill of Rights. …Can we afford exhibitions in our museums depicting any of our people as lesser human beings…? Can we continue to tolerate our ancestors being shown as people locked in time? Such degrading forms of representation inhibit our children’s appreciation of the value and strength of our democracy, of tolerance, and of human rights. They demean the victims and warp the minds of the perpetrators,’ Mr Mandela insisted.

He was talking about all our museums and monuments preserving the whole of our diverse heritage to strengthen our attachment to human rights, mutual respect and democracy.

One of our heritage sites to truly pick up this mantle is Freedom Park, which overlooks the capital city from Salvokop Hill in Pretoria.

A recommendation from the Truth and Reconciliation Commission outlined a need for a memorial to remind the nation that our freedom was not free. Freedom Park fulfils this mandate to contribute towards healing and nation building.

Don’t miss my interview, on page 9, with Jane Mufamadi, Freedom Park’s CEO, about the site’s significance and what it means to our nation. I encourage you to visit, and urge corporate South Africa to support this breathtaking heritage destination.

The team at SA Business Integrator wishes you a happy Heritage Day.

editor@sabusinessintegrator.co.za

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COVER STORY: FREEDOM PARK

The voice of our nation Perched on the Salvokop Hill in Tshwane, Freedom Park is a one-stop heritage site that tells an interwoven tale of our nation’s unique culture, heritage and spirituality. Without prejudice, it reflects who we are, where we’ve come from, and where we want to go as a nation. Emma Dawson talks to Freedom Park’s CEO, Jane Mufamadi, about the significance of Freedom Park and what it means to our nation.

Everything at Freedom Park is representative of our history, heritage, culture, spirituality and indigenous knowledge. Even the 360° view of the capital city from Salvokop Hill symbolises a link between the past, present and future. From here you can see the Voortrekker Monument – a reflection of the past; the Union Buildings – our current governance; and UNISA’s Centre of Knowledge – engendering a sense of knowledge and development for the future.

Freedom Park is a monument to human rights, dignity and freedom, and a memorial to those who have sacrificed their lives to secure liberty. It tells the South African and African story, dating back 3.6 billion years to the dawn of humanity, through the rise of African civilisations, colonialism, the struggle against apartheid, and on to present-day democracy. It is primarily a cultural institution comprising a series of memorial sites that express the common themes of humanity and freedom. Compelling and distinctive African architecture, archives, landscaping, sculpture, and imagery explain the history and heritage of the region.

‘We call Freedom Park a one-stop heritage destination because we narrate the history, heritage, culture, spirituality and indigenous knowledge systems of our nation,’ explains Jane Mufamadi, Freedom Park’s CEO. ‘Everything at Freedom Park is symbolic and every element’s design has been carefully chosen and integrated to reflect the holistic nature of humankind. We believe that it is this that makes us unique, ambitious and different from other heritage destinations.’

Jane adds: ‘Fostering a sense of social connection for

Jane Mufamadi, CEO, Freedom Park

all South Africans, and always remembering those who died for our freedom is important in what we do.’ This is reflected in Freedom Park’s vision to be a leading national and international icon of humanity and freedom.

Storytelling Freedom Park’s elements are particularly special, reflecting our nation’s diversity using names from languages spoken in South Africa – and not only official languages. ‘We also adopted names from heritage languages, for example, the name of our museum is //hapo, which means dream. “//Hapo ge //hapo tama /hapo hasib dis tamas kai bo” is a Khoi proverb that means “A dream is not a dream until it is shared by the entire community”,’ Jane explains.

‘This is central to the message we tell at Freedom Park.

At our museum, we recount the rich and colourful story of South Africa through what we call epochs. These epochs chart events that have changed the course of history in Africa and particularly in South Africa.’ They include an African perspective on the origins of the universe; African innovations and the many vibrant civilisations and ideas that have influenced developments in the modern world; resistance and colonisations, industrialisation and urbanisation; nationalisms and struggle; and, finally, nation and continent building.

Those who have gone before Another of Freedom Park’s elements that Jane highlights is S’khumbuto, a siSwati word meaning memorial.

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COVER STORY: FREEDOM PARK

S’khumbuto bears testimony to the various conflicts that shaped present-day South Africa and remembers those who died during these struggles. It comprises six symbolic elements, the main being the Wall of Names – a 697-meter long wall that is currently inscribed with 85 000 names of those who played a significant role in the eight conflicts that have shaped South Africa.

‘It is also important to know that in honouring and remembering these heroes, we’ve been deliberately inclusive. We’re telling the story of reconciliation and unity, and honouring all those who died for freedom and humanity.’

Another element within the S’khumbuto is the Gallery of Leaders. ‘Here we honour national, continental and international leaders who are unimpeachable and have been highly influential in inspiring our understanding of the concept of freedom and humanity,’ Jane points out.

‘There are currently 41 names in the Gallery of Leaders.

Because we’ve invited public participation, as we receive names they are presented to our independent committee and, once approved, are added to our Gallery of Leaders.’

Freedom Park also has a spiritual space called Isivivane – the symbolic spiritual resting place for the spirits of those who died in their quest for our freedom and humanity. ‘One of our African practices is that when somebody dies away from home, we symbolically and spiritually bring the spirit home. Isivivane symbolises this,’ says Jane. Another important aspect of Isivivane is that it’s a space for people with all religious beliefs to come and pray and worship in their own way.

Respect and tolerance Freedom Park is not only mandated to address reconciliation and nation building, it also purposefully strives to highlight the heritage that our forbearers bequeathed to us. ‘We believe that our heritage and the heritage of the spirit of ubuntu is at the root of respect and

tolerance of diversity. It is our aim to restore that link with those who came before us. It’s this link that forms the basis of how, in our diversity, we feel we are equal and respected and able to interact and tolerate each other,’ explains Jane.

This, she adds, should not just be reflected in our dayto-day interactions but also in our religious tolerance. ‘At Freedom Park, we have an interfaith committee – religious leaders from different faiths sit, pray and eat together. We believe this heritage can be bequeathed to the world. We show that it is possible to be different and yet still be united in our diversity,’ Jane insists.

It’s also important to note that Freedom Park’s message is told from a multicultural perspective. It is not biased towards one nationality but rather to a diverse community, both black and white. ‘Freedom Park is not a place for guilt; it’s a place to celebrate our collective achievement.

It’s a story of hope, persistence and of the triumph of the human spirit.’

Dialogue with the elders Understanding who we are and where we come from is central to activities at Freedom Park. ‘Our elders have gifted us our beautiful heritage and the freedom we appreciate today. We believe that without their wisdom we will lose a link with our own identities and our own heritage,’ Jane insists. ‘We have a programme that we call “Youth in Dialogue with the Elders”, where we create opportunities for young people to engage with the elders and learn about our heritage.’

The elders also played a significant role in the design of Freedom Park. ‘We established an Indigenous Knowledge Committee, comprising elders from different communities, and asked them what their understanding was of our culture and heritage, and what needed to be built to signify who we are as South Africans. Freedom Park’s design is largely inspired by these dialogues,’ Jane fondly remembers.

Jane Mufamadi with some of the ladies in her team.

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COVER STORY: FREEDOM PARK

Freedom was not free Freedom Park emanates from fulfilling a recommendation of the Truth and Reconciliation Commission (TRC), which outlined a need for a memorial to remind the nation that our freedom was not free. Freedom Park fulfils this mandate to contribute towards healing and nation building. ‘We have a popular phrase we use,’ says Jane. ‘Freedom Park is about transforming individual pain into a shared national pain. It’s about remembering our painful experiences, not to harbour a spirit of revenge but to draw lessons from the past and build a better socially-cohesive nation where all of us in our diversity have a sense of belonging.’

Community outreach Although Freedom Park is one of the foremost heritage destinations, it is committed to its many outreach programmes. ‘We want to be in touch with South African communities,’ Jane notes. A recent project that highlights this is the Calvinia Reconciliation Project. ‘Calvinia was a divided community. We brought the community together, assisted them to get funding, and now the whole community is building a Garden of Remembrance together to honour their diverse heroes,’ Jane enthuses.

‘Another programme we’re proud of is Spiritual Repatriation. We work in collaboration with the Department of Justice, the Missing Persons Task Team, and the TRC Unit. There are still many people unaccounted for. We ensure that the repatriation, digging of graves, and handing over of people’s remains to families is done in the most dignified and culturally-relevant and appropriate manner.’

In terms of education, Jane adds that Freedom Park is leading the Time Travel Educational Method in partnership with Sweden and Finland. It’s a participatory (role playing) method of teaching young people about their country’s history and culture, which is proving very successful.

Freedom Park is also proud of its Digital Pan African Archives – a digital collection of stories from ordinary people who contributed to our freedom in various ways.

Educating our nation’s youth ‘We have a fully-equipped education unit and arrange activities that bring together youth from diverse backgrounds to talk about culture and heritage. We also have specific programmes for basic and tertiary education and a special Youth Out of School programme that teaches young people about where they come from and assists them to develop a sense of pride in their own identity. We teach young people about tolerance and acceptance, and to understand and respect each other.

We believe that racism and intolerance often result from ignorance and misconceptions about who you are.’

Freedom Park also focuses on school tours but is aware that accessibility becomes an acute challenge; hence the outreach programmes that aim to take Freedom Park to the people.

‘We have ambitious plans for the future, and my dream is that every South African child can visit Freedom Park at least once in their lifetime. We believe that we are

the foundation of identity and heritage, as well as the foundation of unity and diversity. I hope that the nation will rally to support us, and particularly corporate South Africa, which can potentially help to fund visits for children from some of the smaller, poorer schools,’ Jane implores.

Award-winning location Besides visiting Freedom Park for a tour, or to spend time learning, reflecting and praying, it is also the perfect location for corporate functions and retreats, picnics, and even concerts. This beautiful and inspiring venue offers state-of-the-art technology and facilities, as well as a peaceful space for walking, hiking and bird watching.

‘When you’re at Freedom Park you’ll forget that you’re in the city centre,’ Jane quips. Last year, Freedom Park was voted among the top 10 architecturally outstanding museums in the world and Pretoria’s best heritage destination. We believe these are testaments to the beauty and uniqueness of Freedom Park,’ Jane says.

The heart and soul of South Africa ‘We believe that Freedom Park is the voice of the South African people. Bringing together threads of our nation’s unique culture, heritage, history and spirituality, Freedom Park weaves together the previously untold South African story. We believe that Freedom Park reflects the heart and soul of South Africa, captured in one breathtaking space.

For that reason, we encourage all South Africans to visit,’ Jane concludes. n

Freedom Park Corner Koch and 7th Avenue, Salvokop, Pretoria T +27 012 336 4000 W www.freedompark.co.za

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AGRICULTURE

Hard graft pays off From the fertile valley of Grabouw in the Western Cape – historically significant as one of the earliest movements towards black ownership of vineyards and wineries – Beverley-Anne Joseph has become the first black female hops farmer in Africa.

Located in Waboomskraal near George, BeverleyAnne Joseph’s 50-hectare farm, Zelpy, produces 20 hectares of bittering and flavour hops for Castle, Castle Lite and craft. It’s through the SAB Thrive Fund that this transaction was made possible.

‘As a young black South African, the biggest challenge for me was start-up capital and finding the right partner to provide business support. SAB’s help with an interest-free loan to purchase the farm and Awethu’s professionalism and support in our engagement sessions were invaluable in making this possible,’ says Joseph.

Learning to work the land alongside her dad who worked in agriculture his whole life, the seed for this moment was sown in Joseph’s youth. When she finished school, there was no question that Joseph wanted to be in any field other than agriculture. ‘As one of seven children, there was no funding for university so I approached local farmers in the small Western Cape farming community to raise the funds. That’s when I

spoke to Dr Paul Cluver, who gave me a bursary to study viticulture and oenology at Stellenbosch University.’

After university, a call from SAB set Josepth on a path of practicing and honing her knowledge and skill with her mentor, Thinus van Schoor, who helped her to explore the limits of what she thought possible.

The story of Joseph’s dedication and commitment is indelibly written in the pages of her CV with no room for doubt that her mother’s ‘never give up’ attitude was deeply embedded within her.

At the age of 33, Joseph is more than a skilled farmer and business woman with vision for leading the charge in cutting-edge changes in the hops field. She is centred by a strong drive to impact the core team of 10 people who work with her: ‘With so much land there is huge scope to help my workers develop their own enterprises in vegetable farming, for example, to improve their living conditions and the quality of their lives. My dream is that the success of the farm will snowball into the community, South Africa and beyond.’ n

Photo credit: Awethu Project

The SAB Thrive Fund is a black private equity fund that was established and is funded by SAB in partnership with the Awethu Project to transform SAB’s supplier base through acquisition, business development and fostering entrepreneurship.

The Awethu Project is one of Africa’s leading social enterprises, growing from a R60 000 start up to a R450m incubator and private equity fund manager. Awethu has incubated over 2 000 entrepreneurs and refined its SME equity investment model by innovating and testing equity investments in micro, small and medium enterprises alike. For more information, visit www.awethuproject.co.za.

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CORPORATE GOVERNANCE

Reducing social inequality The Sustainable Development Forum offers practical guidance to help directors and executives build effective, strategic responses to the challenge of social inequality.

Social inequality is a strategic risk for businesses globally, and particularly in South Africa.

Consequently, directors need to ensure that initiatives to reduce inequality are core to the organisation’s strategic thinking and planning, says Karin Ireton, chair of the Sustainable Development Forum (SDF), a forum of the Institute of Directors in Southern Africa (IoDSA).

‘As we have seen over years of protests about service delivery, unequal access to the most basic services affects many South Africans. In turn, that inequality translates into greater challenges in obtaining education and employment and negatively impacts the environment in which business operates – from the national mood to employee productivity, market resilience and the health of the supply chain,’ says Ireton. ‘When inequality is particularly marked, as it is in South Africa, it threatens the long-term profitability and sustainability of all businesses.

‘While the primary responsibility for social redress rests with the state, business can and must play a role in promoting growth and prosperity. In line with the integrated thinking proposed in King IV, it makes good business sense to prioritise social inequality on the agendas of governing bodies and their strategic decisionmaking,’ she adds.

In short, directors need to steer organisations beyond seeing corporate social investment or philanthropy as a sufficient response to this challenge. Rather, overcoming social inequality should be an essential part of an organisation’s strategic review and goal setting.

The paper shows how various aspects of social

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inequality impact specific business risks. For example, unequal education affects the available workforce and productivity; unequal healthcare affects productivity; and unequal opportunity creates resentment and, ultimately, an unstable market environment.

‘These are real business risks, and their scale and urgency in South Africa means a more business-like approach is needed, with the focus shifting from the amount spent (the typical corporate social investment metric) to effective monitoring and the measurement of impact,’ Ireton insists. ‘We have already seen this shift in the skills area: as access to the right skills has become a real risk, so companies have moved from a conventional bursary programme as part of corporate social investment into a formal investment in skills development pipelines.’

The paper offers a set of 13 practical guidelines for directors to consider as they seek to make a measurable impact on social inequality in the quest for sustainability.

Such guidelines include a continuous assessment of the socio-political context in which the organisation operates, particularly in relation to the shifting landscapes of key stakeholders; identifying opportunities that return benefits that extend beyond shareholder profits and employee remuneration; and looking at these issues with an operational focus.

At a broader level, organisations need to find ways to promote inclusive capitalism and long-term shared value, in which the widest possible grouping (stakeholders, consumers and communities) benefit from initiatives that also secure new markets for the organisation. For more information, visit www.iodsa.co.za. n

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CONSTRUCTION & ENGINEERING: COMPANY PROFILE

Photo credit: Clay Brick Association of Southern Africa

The Green Building Council of South Africa’s offices in Johannesburg benefit from the energy cost savings afforded by clay bricks.

Clay bricks: star performers in sustainability

By Emma Dawson

To improve the sustainability of building materials and understand their environmental and socio-economic impacts, the Clay Brick Association of Southern Africa has produced the country’s first industry-wide Life Cycle Assessment. As part of a larger sustainability initiative, this assessment commits the clay brick sector to continuously improve water and energy savings, and limit the use of coal as a firing fuel.

Buzz words abound in the construction sector – green, sustainable, eco-friendly, low carbon footprint, recyclable and reusable. We’ve heard them all, and for good reason: the growth and development of societies has a big impact on our natural environment and increasing a building’s efficiency is important for preserving our natural resources.

Clay bricks have been around since Babylonian times.

Dating back some 5 000 years, they are one of the oldest building materials and are still widely used thanks to their durability, structural capacity and energy performance.

Brick buildings shape South Africa’s architectural heritage – from schools, social infrastructure, hospitals, churches and stately homes to forts and lighthouses.

You will also see affordable brick homes, moulded from South African soil, that have protected and served South African families across several generations. The average clay brick structure lasts for more than 100 years, and there are numerous examples of buildings dating back 500 years.

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Clay brick structures have impressively high loadbearing capacity, and high-dimensional stability and compressive strength, which limits cracking and ensures structural integrity. They are incombustible, offering the maximum fire rating; and water resistant, making them impervious to all weather.

Also, because of the durability of clay brick constructions, life cycle cost analysis demonstrates long-term benefits – they require little to no maintenance, they’re easy to clean, and thermal expansion and contraction is minimal throughout the year thanks to their low thermal and moisture movement.

For energy cost savings, clay bricks hold all the trumps.

Their inherent thermal capacity significantly reduces the need for more expensive insulation materials between the brick leaves; and their ability to self-regulate means they keep internal spaces naturally cool in summer and warm in winter. Additionally, their thermal efficiency reduces the need for heating and air-conditioning, providing lifetime savings for property owners.

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CONSTRUCTION & ENGINEERING: COMPANY PROFILE

Another major benefit of clay bricks is that they can be salvaged and reused when the existing structure has outlived its usefulness. Bricks can be crushed and recycled as aggregate for road construction, sub-base, or non-toxic landfill and site levelling. They can also be cleaned and reused for new building construction.

SA’s first industry-wide LCA With these myriad benefits as a backdrop, it’s no wonder that the Clay Brick Association of Southern Africa (CBA) wants to drive home its environmental message.

‘A first step towards improving the sustainability of building materials is to understand the extent and source of their environmental and socio-economic impacts. It was with this intention that the CBA embarked on a four-year project to complete South Africa’s first industry-wide Life Cycle Assessment (LCA),’ explains CBA’s president, Musa Shangase.

Photo credit: Clay Brick Association of Southern Africa

“

The average clay brick structure lasts for more than 100 years, and there are numerous examples of buildings dating back 500 years.”

An LCA quantifies the resources consumed and emissions produced over the product’s entire life cycle and then assesses the impact of this on specific environmental aspects such as human health, climate change, and damage to ecosystems. It allows property developers and building owners to make fact-based decisions in the context of building and operating sustainable, energy-efficient green buildings.

Conducted in accordance with the ISO 14040 and 14044 standards, and with an external review to aim for the highest quality standards, the study evaluates all major environmental impacts including damages to human health, to ecosystem quality, to the contribution to climate change, and to the consumption of nonrenewable resources for the six main brick manufacturing technologies with respect to the production of 1kg of fired brick.

These included: • Calculating the resources consumed and emissions produced over the entire life cycle of clay brick.

• Assessing the impact of different methods of clay brick production against specific environmental factors such as human health, climate change and damage to ecosystems. The study used production data from 86 of the 102 clay brick production sites in South Africa, ensuring the results are a relevant and valid assessment of the industry.

Built in 1860, this beautiful roof is part of an arch that supports a railway viaduct in London.

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CONSTRUCTION & ENGINEERING: COMPANY PROFILE

• Q uantifying the energy efficiency of six common walling materials across South Africa’s six climate zones and three types of building types (low-cost residential, residential and commercial). It compares heating and cooling costs during the 50-year use or occupation phase.

• Measuring a range of socio-economic factors such as health and job creation (social Life Cycle Assessment).

The big picture ‘During brick manufacturing, environmental impact mostly relates to mining, production and burning coal – the raw material used for combustion during firing.

Because South Africa relies on coal-burning technology for the generation of electricity, switching to electric kiln technologies would not reduce environmental impact,’ explains Nico Mienie, CBA’s technical director.

By far the greatest share of climate and health impacts occur in the ‘use’ phase (50 years of building use and occupation). ‘Electricity used for heating, cooling and ventilating homes and offices in South Africa has a very high impact because electricity is predominantly generated by coal-fired power stations. The study measurements were based on residents living in reasonable thermal comfort (between 19 and 25˚C).

This makes clay brick an attractive option for both environmentally-conscious architects and cost-conscious property owners,’ Mienie insists.

“

By far the greatest share of climate and health impacts occur in the ‘use’ phase.”

From a socio-economic point of view, the LCA assesses how the product affects workers, the community and consumers, which includes human rights, working conditions and health and safety.

‘It takes 26-man hours to produce 1 000 bricks, which results in four jobs created per million bricks produced.

In South Africa, the brick industry provides employment, particularly in rural communities where it is most needed.

What’s more, the industry actively engages in community development programmes, and brick makers significantly support SMMEs – from which they purchase 74% of their supplies,’ Mienie notes.

He adds: ‘A strength of our industry is its transparency and communication regarding environmental performance, and a positive impact regarding health and safety, and living conditions. Areas for improvement include equal opportunities for employment at higher education levels, and equal remuneration across gender and race.’

Committed to energy efficiency ‘The clay brick sector is committed to playing its part in meeting government’s targets to reduce carbon

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“

Clay bricks are one of the oldest building materials and are still widely used thanks to their durability, structural capacity and energy performance.”

emissions. Over the last four years, the Energy Efficient Clay Brick Project (EECB)’s energy-efficiency initiatives resulted in a 10 to 15% reduction in the industry’s greenhouse gas emissions,’ maintains Mienie.

When asked why the LCA matters to the construction industry, Mienie notes: ‘Energy used during production is just a fraction of the total life cycle considerations of a building material. The clay brick industry LCA allows architects to accurately calculate the lifetime environmental impact of using clay brick in a building compared to other construction materials. Access to accurate data makes it easier to design green buildings that are naturally energy efficient.’

Continually improving industry sustainability CBA has led research in brick production and brick building design for 54 years,’ says Shangase. ‘This information aids architects and engineers to maximise thermal comfort and energy efficiency in residential and commercial buildings. With the assistance of the EECB, several local brick manufacturers have already reduced their energy consumption since the LCA’s original data collection period.’

He adds: ‘The LCA is part of a larger sustainability initiative that commits the clay brick sector to continuous improvement in terms of water and energy saving, as well as limiting the use of coal as a firing fuel. It offers guidance to our members who want locally-relevant statistics on which technologies offer reduced fuel use, improved air quality and low environmental impact.’

Know the facts A regular South African Brick Industry Sustainability Report will be prepared to show how South Africa’s clay brick sector is performing against its collective sustainability strategy. It will demonstrate progress against targets set for fossil fuel use, waste and resource consumption.

To disseminate the findings of the reports for construction decision makers, the most pertinent results from the main report are consolidated into a series of downloadable publications available for free from the CBA’s website.

‘The greatest potential for the clay brick sector to reduce its environmental impact is by educating the building sector about the need for the design of energyefficient buildings and the importance of choosing suitable building materials,’ concludes Mienie.

For more information, visit www.claybrick.org. n

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“A local company with global experience” Lebo Leshabane CEO

INNOVATIVE ENGINEERING SOLUTIONS With key staff having more than 35 years’ of experience in South Africa, our intimate knowledge of the country’s unique challenges enables us to tailor our solutions to deliver maximum value to our customers and apply this knowledge to the broader African and internationa arena.

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Corporate social investment

A responsible growth strategy Not only consumers but all stakeholders want to know what businesses are doing to be socially and environmentally responsible. This influencing factor has the potential to build or break down your reputation and, therefore, having an authentic corporate social investment (CSI) initiative is key to sustainable growth in any organisation.

The latest King IV report, launched at the end of 2016 by the Institute of Directors in Southern Africa (IoDSA), aims to reinforce principles of good corporate governance, ethical leadership, and sustainable development, and discusses a ‘changed world’. An influencing drive for the change in corporate governance is climate change and the environmental impacts that affect people. The quality of the environment and the resources it offers directly influence the quality of life of the people living there. Also part of society are businesses, which are in the advantageous position of being able to positively influence change that addresses social and environmental issues.

‘CSI purely as a marketing attempt is not a good strategy. It is imperative to have an ongoing investment towards positive change,’ notes Chris Bischoff, research and sustainability specialist at Reputation Matters.

In this day and age, your average consumer is much more tuned in to specific environmental and social issues.

Mentioned in King IV, social media (specifically Facebook and Twitter), is creating a world of radical transparency, especially when it comes to being transparent about

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environmental performance. More and more institutions and businesses are getting caught out, especially on social media, for not ‘walking their environmental talk’.

This is known as ‘greenwashing’ – saying that you have a responsibility towards reducing your environmental impact when business decisions and actions suggest otherwise.

This is why it is so important to have an authentic approach to your CSI initiatives.

‘Not only does it pay dividends for the environment and society’s wellbeing, but having an authentic commitment to environmental and social responsibility makes business sense. You open the opportunity of becoming a strategic alliance. Our research shows that people and businesses want to be involved with other organisations that are socially and environmentally responsible,’ Bischoff adds.

CSI is a two-way investment. In one sense, it means investing in the upliftment of a society and, in another, investing in that area of business that contributes to your corporate reputation. Having well thought out CSI initiatives aligned to your organisation’s vision and values encourages employees to embody this responsibility and, most likely, taking this culture home from work.

If you would like to know what people think about your corporate social and environmental responsibility, read more about Reputation Matters’ Sustainability Check, a research tool that provides insight into stakeholders’ perceptions of your social and environmental responsibility. For more information, visit www.reputationmatters.co.za. n

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WWW.RENPOWER.CO.ZA

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To find out more what RENpower can do for you please contact Marius Bekker, mbekker@renpower.co.za CONTACT DETAILS:

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Tel: 021 035 0345 E-mail: mbekker@renpower.co.za

Address: 10A Carpe Diem Offi ce Park, Quantum Street,Techno Park, Stellenbosch

Web: www.renpower.co.za

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ENERGY

Photo credit: Chamber of Mines

Powered by platinum Proponents believe that platinum-based hydrogen fuel cell technology has huge potential for South Africa, not only as a cleaner way to provide base load electricity but also because platinum is the catalyst in many fuel cell designs, and could increase demand for the country’s enormous platinum reserves. The Chamber of Mines explains why.

Fuel cells are not a new idea. The physics was established in 1838, and the first crude example of a fuel cell was demonstrated in 1839. Then, in the 1950s, General Electric chemists developed the concept using platinum as the catalyst for the necessary hydrogen/oxygen reactions. The first hydrogen fuel cell car was developed in 1991 and NASA used fuel cells for both the Apollo and Space Shuttle missions.

Over the past 40 years, the fuel cell has progressed from development into application, broadening platinum’s clean energy credentials. While the current world leader in application is South Korea, the global market for fuel cells is still in its infancy. South Africa sees this as a development opportunity, and that platinum fuel cells can help to address the increasing demand for energy,

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decrease country’s high carbon footprint, create jobs, and beneficiate South Africa’s platinum.

The chief challenges to the adoption of fuel cells are capital costs and the need for gas as a fuel. Nevertheless, fuel cell technology is increasingly being explored and promoted locally.

A fuel cell using just 40 ounces of platinum and low-pressure natural gas is powering the Chamber of Mines’ building in the heart of Johannesburg’s central business district. While the use of stationary fuel cells to power buildings is becoming more common in the USA, Germany, Japan and Korea, this is the first base load commercial low pressure natural gas installation in Africa.

The Chamber’s fuel cell, installed in December 2014, was the culmination of a four-year initiative to demonstrate the applicability of fuel cell technology in South Africa.

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ENERGY

The fuel cell industry has the potential to revolutionise the way power is delivered, and the Chamber of Mines continues to demonstrate the potential for local manufacture and the industrial use of platinum in South Africa and Africa. It also continues to promote platinum beneficiation, to capture and sustain technical and operational fuel cell knowledge, and to unlock South Africa’s natural resources by using natural gas and platinum.

What is a fuel cell?

A fuel cell is a highly-efficient and ultra clean power generation system based on an electrochemical process, not combustion, to reduce harmful emissions (NOx, SOx and CO2).

It is reliable, with power availability in excess of 99% of the time in multiple unit configurations or connected in parallel with the electric grid. It is modular and scalable, which means it can be installed and operated in parallel to meet any size of electrical load requirement – additional units can be added incrementally as a facility requires. It is quiet and durable – quiet enough to install inside or outside a building (normal conversation can be conducted within close proximity of the fuel cell); and it generates electricity and heat from the electrochemical reaction between hydrogen, platinum, oxygen, and in this case phosphoric acid, without energy conversion through fuel combustion A fuel cell has a fire inertisation ability and is used in protecting data centres and high fire risk areas, such as tyre storage facilities. It is eco-friendly, readily available, and uses hydrogen or hydrogen-rich fuel (such as natural gas, biogas, methanol) and oxygen. Other benefits include its use for propulsion or auxiliary power in transportation (cars, trucks, buses, trains, ships, submarines and spacecraft); and its versatile technology (each fuel cell type has unique operational characteristics for a broader range of applications than any other currently available power source – from large power plants to vehicles and residential power for mobile phone chargers and toys).

How fuel cells operate 1. A fuel cell is an electrochemical device that combines hydrogen and oxygen to produce electricity with water and heat as its by-product.

2. A single fuel cell consists of two electrodes – an anode and a cathode – with an electrolyte between them.

3. At the anode, hydrogen reacts with a catalyst, creating a positively-charged ion or proton and a negatively-charged electron.

4. The proton then passes through the electrolyte while the electron travels through a circuit, creating a current.

5. At the cathode, oxygen reacts with the ion and electron, forming water and useful heat.

When cells are stacked in series the output increases, ranging anywhere from several watts to multiple

megawatts. South Africa is in a unique position to drive the platinum group metals (PGMs) market in the right direction by actively promoting and using fuel cells, not only to be able to beneficiate our platinum but in driving industrialisation. To date the local uptake of fuel cell technology has been disappointing, but there are signs that this market is starting to see growth.

Job creation The fuel cells industry potential, as a key benefactor, is strategically positioned to take advantage of this increased interest and demand as it will accelerate PGMs manufacturing in South Africa for both local consumption and export, driving the economy and creating sustainable jobs.

The impact on job creation in the mining sector is significant and the associated manufacturing and servicing job opportunities, while not being high in number in comparison to the mining sector, provide advanced skills development opportunities.

Alternative energy and economic growth Unlike a conventional power plant, the electrochemical reaction between hydrogen and oxygen with a fuel cell generates electricity directly, without undergoing an energy conversion process through fuel combustion, making it highly efficient, eco-friendly, and readily available for distributed generation as a next-generation energy source. The development of other fuel cell catalysts, other than platinum, poses a potential threat to South Africa’s beneficiation drive. However, by acting decisively in taking a lead in the fuel cell value chain, South Africa can emerge as the custom-engineered and integration manufacturing and servicing hub of Africa.

Registering for carbon credits Fuel cell technology is aligned with the Chamber of Mines’ commitment to an agreement reached at COP21, aimed at creating a more environmentally-sustainable future through the Sustainable Development Goals.

In the most recent news from the Chamber of Mines, it is now in the process of registering its platinum fuel cell project with the United Nations Framework Convention for Climate Change (UNFCCC). By doing so it hopes to be able to obtain tradable carbon credits through a programme of activities (PoA) under the Clean Development Mechanism (CDM).

The 100kW fuel cell currently uses piped natural gas to generate electricity and heat at the Chamber of Mines head office in Johannesburg. The electricity and heat generated from the cogeneration fuel cell project displaces the grid electricity requirements of the Chamber of Mines’ building. As this grid is predominantly coal-fired and therefore, heavily carbon-intensive, the reduction in electricity consumption from the grid results in a reduction of greenhouse gas emissions. For more information, visit www.chamberofmines.org.za. n

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ADVERTORIAL: NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA

Empowering greener industry

In keeping with its theme, ‘Transitioning industry to a low carbon economy’, the conference offers workshops, presentations and panel discussions on a range of resource efficient and cleaner production (RECP) methodologies.

Delegates can expect information about better use of energy, water, materials and waste, as well as legislation and policy that may affect their operations. Successful case studies will also form an integral part of the two-day programme.

The NCPC-SA, a national programme funded by the dti and hosted at the CSIR, supports industrial companies to reduce their environmental impact through RECP. ‘The conference is an opportunity to expose companies to government policy and support programmes, new research and methodologies, the successes and lessons of other companies, and the opportunities for skills development in the green economy,’ explains Julie Wells, marketing and communications manager at NCPC-SA. Both days include a non-commercial exhibition, allowing delegates to interact with government and industry programmes that may be of assistance.

The programme is structured to allow delegates to move between themed tracks and addresses an array of relevant topics. On Thursday, September 14, the focus is on areas needed to create resilient companies and sectors. Presentations offer practical solutions for companies wishing to transition to a cleaner, more sustainable and environmentally-conscious organisation.

Topics include energy efficiency, water efficiency, industrial symbiosis, waste management, green productivity, localisation and clean technology. A session on NCPC-SA’s tools and programmes introduces RECP and provides guidance on the first steps and subsidised services to begin a low carbon journey.

On Friday, September 15, the conference delves a little deeper into creating a competitive advantage through

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Photo credit: NCPC-SA

From September 14 to 15, 2017, the National Cleaner Production Centre South Africa (NCPC-SA) is hosting its biennial Industrial Efficiency Conference at Century City Conference Centre in Cape Town in its on-going effort towards industrial and commercial sectors becoming cleaner, greener and more resource efficient.

RECP. Sessions address ‘next step’ topics such as renewable energy, sustainability reporting, green funding, sustainable value chains, and the professionalisation of the RECP sector. The day’s highlight is tracking Life Cycle Thinking, which addresses the concept of ecoinnovation – measuring the carbon and water footprint of a product along the entire value chain.

Conference partners include the dti, the Departments of Trade and Industry and the Environment, the CSIR, Proudly South African, Productivity South Africa, United Nations Industrial Development Organization (UNIDO), UN Environment, the Global Cleantech Innovation Programme, the Technology Localisation Implementation Unit, and the Global Reporting Initiative.

The two-day event is expected to draw 400 delegates from industry, business and government, and is offered at no cost to delegates. However, registration is essential at www.ncpc.co.za/conference. n

National Cleaner production Centre South Africa T +27 012 841 3772 T +27 021 658 2776 E ncpc@csir.co.za W www.ncpc.co.za

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ADVERTORIAL: BOWLINE SECURITY

Cyber threats change as technology evolves Today, cyber criminals still use technology platforms to gain access, manipulate and destroy sensitive information that resides on all digital platforms. Bowline Security considers cyber security awareness programmes within organisations effective towards reducing cyber risks.

Is your personal/business information safe anymore?

Are the username and password/pin still sufficient in securing your online presence? Are your security measures making it difficult for hackers to get in, but simple enough to do business with you?

Online transactions are constantly under attack and can lead to legal costs, fines and increased pressure on IT departments, as well as seriously damaging your business’s reputation and, most importantly, losing your customers’ trust.

By simply adding a multi factor authentication process and encrypting your devices, you will drastically decrease the chance of a data breach.

History of Bowline Security Bowline Security can trace its roots to the early years of the Millennium, when a great deal of financial fraud was taking place. The Internal Audit Unit within the Treasury Department of KwaZulu-Natal mobilised an international task team lead by Mr Sbusiso Xulu. The project was called Unembeza. It was also Mr Xulu who planted the security seed within Carl Uys, Bowline Security’s CEO, to investigate the modus operandi relating to fraud and to conduct technology analytics within the government environment.

The success of project Unembeza resulted in its findings being handed over to SITA to implement. In 2011, Bowline Security was formed by three former Unembeza team members – a Canadian, an American, and a South African.

Besides its general interest in technology and cyber security, Bowline Security is motivated by the desire to make the world a safer place. Its personnel spend much of their time urging businesses and public sector organisations to improve their security maturity

“

In addition to providing intelligence advisory services and international technology security solutions, Bowline is pursuing an exciting new line of work as it develops its own products.”

levels when it comes to cyberspace. Bowline assists organisations to evaluate their risk from a technology perspective and provides security technology that assists in minimising these risks.

Bowline works predominantly in seven key sectors in three countries. However, we have established a benchmark in the energy sector, in petrochemicals and within the hospitality sector. We have also undertaken a lot of research in the maritime and defence sectors. We are on a journey of really transforming the South African petrochemical industry, getting it from an immature stage of cyber security to the internationally preferred industry level.

In addition to providing intelligence advisory services and international technology security solutions, Bowline

Photo credit: Bowline Security

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ADVERTORIAL: BOWLINE SECURITY

is pursuing an exciting new line of work as it develops its own products. It owns a stake in Payprint, which has developed a biometric authentication system.

We’ve developed a unique technology biometric authentication solution that uses your fingerprint to make payments. We have made security the foundation of the solution – you don’t need your card or your phone, all you need is your fingerprint to make a payment. This solution safeguards you from card cloning and people obtaining your credit/debit card details.

Although Bowline isn’t able to divulge much detail about the other in-house service in the pipeline, it is involved in developing a child protection service geared for parents’ use. The company is also keeping abreast of developments in artificial intelligence.

The cost of recovery Business and government leaders shouldn’t underestimate the role people play in matters of security – it is definitely not just about technology. The processes that people follow can directly impact security. Bowline is surprised that so many companies still mandate IT departments to look after cyber and information security yet they understand that security is a different skill set. It’s like trusting your physical security guard to ensure that your IT systems function.

‘Don’t wait to become a victim,’ Bowline Security urges.

‘The cost of recovery is often greater than the cost of accurately assessing your systems for vulnerabilities and addressing these.’

Career opportunities Bowline is keen to attract more young people to the field of cyber security. With an estimated shortfall of six million

“

By simply adding a multi factor authentication process and encrypting your devices, you will drastically decrease the chance of a data breach.”

cyber-security professionals worldwide, Bowline feels there are ample career opportunities for young people with the right attitude.

We’ve begun partnering with the likes of the Cyber Security Institute, with the Pearson Institute of Higher Education, and technology giant, Cisco, to map out a holistic programme where we can get students from high school into a higher institution of learning and, from there, posting them into companies such as Bowline where they’ll be taught the importance of cyber security.

In conclusion, Bowline says that relationships with God, family, friends and business partners inspire our team to practise continuous improvement.’ n

BOWLINE SECURITY T +27 031 535 7236 E info@bowlinesecurity.com W www.bowlinesecurity.com

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ENTREPRENEURS

What entrepreneurs wish they’d known when they started out 2016 Entrepreneur of the Year® winners discuss advice they would share with their younger selves.

Entrepreneurs in the small and medium enterprise (SME) sector have long regarded business mentorship as one of the fundamental factors required for developing this space in the South African economy.

Gugu Mjadu, spokesperson for the 2017 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, points to the results of the first quarter 2017 Business Partners Limited SME Index that reported an 82% level of importance for business mentorship in the development of a business. This is the highest level ever recorded since the survey’s inception in 2012.

Mjadu says that in the absence of concrete guidance and mentorship, the path to becoming a successful entrepreneur can be lonely and too often forged solely by way of trial and error – frequently involving costly mistakes and countless sacrifices along the way.

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‘Entrepreneurs are desperate for mentorship to guide their businesses in the right direction in the current economic climate,’ she notes.

Some of the past winners of the 2016 Entrepreneur of the Year® competition offer their advice to younger aspiring entrepreneurs starting their journey: Vanessa Jacobs of Sow Delicious® and 2016 Emerging Business Entrepreneur of the Year® says that she would remind her younger self to never trade passion for money.

‘If you follow the money it will seem to elude you and leave your life empty. But, if you work for the love of it, then the money will follow you instead. It is also important to always remain teachable and view every set-back as a gift because at its very core lies a solution of how to use it to excel to greater heights,’ she adds.

This sentiment of remaining teachable is echoed in the advice offered by Michael Roberts, owner and founder of Khonology, and 2016 Job Creator of the Year®.

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themselves about what they do and do not know, and then get help with what they don’t know.’ He adds that young entrepreneurs should realise that it can take up to five years to put a solid business concept together and to start making serious money. ‘In this time, entrepreneurs must remember that they are not managing a readymade concept – it requires constant change and sharp entrepreneurial tenacity to succeed. Most entrepreneurs look down at the road they are on and forget to check the direction in which they’re going. Keep one eye on the potholes and the other on the road.’ n

Gugu Mjadu, spokesperson for the 2017 Entrepreneur of the Year® competition

Photo credit: Sanlam/BUSINESS/PARTNERS

‘Understand economics and how the world works but be open to views, ideas and take advice. Look for inspiration in other people’s success stories and surround yourself with positive and focused people.’

Overall 2016 Entrepreneur of the Year®, Johan Eksteen of Agricon, urges young entrepreneurs to realise that they are loose cannons – something that he says is both a good and a bad thing. ‘Young entrepreneurs have untapped potential as they have not yet been corrupted by the harsh realities of the economy. They dream without limits and are therefore creative and original. ‘Many ideas are potentially great, but the key is to implement these in real life. If they listen too much or too often to people with experience, they may be discouraged, and their great innovation may go undeveloped. However, if they do not heed some mentorship and advice, they may have no clue as to how they should turn the idea into a business.’ He adds that choosing the right mentor is crucial. ‘The last thing a young driven entrepreneur needs is a passion killer.’

Carl Pretorius, managing director of Just Trees and 2016 Medium Business Entrepreneur of the Year®, says that he found having an older mentor to bounce ideas off and get advice from was very helpful. ‘I would encourage young entrepreneurs to be honest with

The Entrepreneur of the Year® competition sponsored by Sanlam/BUSINESS/PARTNERS aims to honour, benefit and uplift South African SMEs. Now in its 29th year, the competition celebrates excellence in entrepreneurship, serving as an inspiration to others to succeed in the world of business. For more information, visit www.eoy.co.za.

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ENVIRONMENT & SUSTAINABILITY

Food security: the staggering statistics The statistics are staggering. According to the Food and Agricultural Organization of the United Nations (FAO), roughly one third of the food produced in the world for human consumption every year – approximately 1.3 billion tonnes – gets lost or wasted. Emma Dawson considers the facts and figures published by the FAO. Food losses refer to the decrease in edible food mass throughout the part of the supply chain that specifically leads to edible food for human consumption. Food losses take place at production, postharvest and processing stages in the food supply chain. Food losses occurring at the end of the food chain (retail and final consumption) are referred to as food waste, which relates to retailers’ and consumers’ behaviour.

With 50% of South African households experiencing hunger or food insecurity, we need to take food security very seriously for many reasons.

The FAO’s statics reveal that in developing countries, 40% of losses occur at post-harvest and processing levels, while in industrialised countries more than 40% of losses happen at retail and consumer levels. For example, large quantities of foods are wasted at retail because of high quality standards and over-emphasis on product appearance.

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Worldwide enough food is produced to feed everyone, yet this food and the technology to produce it do not always reach those in need.

Between 2014 and 2016, the FAO estimated that about 795 million people of the 7.3 billion people in the world, or one in nine, were suffering from chronic undernourishment. Even if just one-fourth of the food currently lost or wasted globally could be saved, it would be enough to feed 870 million hungry people in the world.

The impact on food security The issue of food losses is of high importance in the efforts to combat hunger, raise income and improve food security in the world’s poorest countries. According to a paper published by the FAO, food losses have an impact on food security for poor people, on food quality and safety, on economic development and on the environment. The exact causes of food losses vary

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throughout the world and are very much dependent on the specific conditions and local situation in each country. In broad terms, food losses are influenced by crop production choices and patterns, internal infrastructure and capacity, marketing chains and channels for distribution, and consumer purchasing and food use practices. Irrespective of the level of economic development and maturity of systems in a country, food losses should be kept to a minimum.

Improving the efficiency of the food supply chain What’s more, food losses represent a waste of resources – land, water, energy and inputs – used in production. Producing food that will not be consumed leads to unnecessary CO2 emissions in addition to the loss of economic value of the food produced.

Economically avoidable food losses have a direct and negative impact on the income of both farmers and consumers. Given that many smallholders live on the margins of food insecurity, a reduction in food losses could have an immediate and significant impact on their livelihoods.

For poor consumers (food insecure or at-risk households), the priority is clearly to have access to food products that are nutritious, safe and affordable. It is important to note that food insecurity is often more a question of access (purchasing power and prices of food) than a supply problem. Improving the efficiency of the food supply chain could help to bring down the cost of food to the consumer and thus increase access.

Given the magnitude of food losses, making profitable investments in reducing losses could be one way of reducing the cost of food. But that would, of course, require that financial gains from reduced losses are not outweighed by their costs.

Ongoing research and collaboration How much food is lost and wasted in the world today and how can we prevent food losses? The FAO’s researchers maintain that these are questions impossible to give precise answers to, and there is not much ongoing research in the area. They add that this is quite surprising as forecasts suggest that food production must increase significantly to meet future global demand. Insufficient attention appears to be paid to current global food supply chain losses, which are probably substantial.

As with many issues that are exacerbated by extreme poverty, it’s often the youngest and most vulnerable who are hurt the most. The world’s children are disproportionately affected by food and nutrition shortages. In 2015, 90 million children under the age of five (one in seven) worldwide were underweight. Ninety percent of the world’s hungry children live in just two regions – southern Asia and sub-Saharan Africa. For more information, visit www.fao.org. n

Facts about food loss and waste One of the pillars of the global initiative for solutions for food loss and waste is awareness.

According to the FAO, this will be achieved by, among other things, increasing knowledge and changing the behaviour of actors and consumers in the food chains.

The facts: • Roughly one third of the food produced in the world for human consumption every year – approximately 1.3 billion tonnes – gets lost or wasted.

• Food losses and waste amounts to roughly US$680 billion in industrialised countries and US$310 billion in developing countries.

• Industrialised and developing countries dissipate roughly the same quantities of food – 670 and 630 million tonnes respectively.

• Fruits and vegetables, plus roots and tubers, have the highest wastage rates of any food.

• Every year, consumers in rich countries waste almost as much food (222 million tonnes) as the entire net food production of sub-Saharan Africa (230 million tonnes).

• Per capita waste by consumers is between 95 to 115kg a year in Europe and North America, while consumers in sub-Saharan Africa, and south and south-eastern Asia, each throw away only 6 to 11kg a year.

• Total per capita food production for human consumption is about 900kg a year in rich countries, almost twice the 460kg a year produced in the poorest regions.

• In developing countries, 40% of losses occur at post-harvest and processing levels while in industrialised countries more than 40% of losses occur at retail and consumer levels.

• At retail, large quantities of food are wasted because of quality standards that over-emphasise appearance.

• Food loss and waste also amount to a major squandering of resources and needlessly produce greenhouse gas emissions that contribute to global warming and climate change.

• The food currently lost or wasted in Latin America could feed 300 million people, in Europe could feed 200 million people, and in Africa could feed 300 million people.

• Even if just one-fourth of the food currently lost or wasted globally could be saved, it would be enough to feed 870 million hungry people in the world.

For more information, visit www.fao.org/save-food/en/.

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ENVIRONMENT & SUSTAINABILITY

Identifying areas for meaningful sustainability Business owners have a responsibility to not only keep the environment clean, but also to help marginalised societies. The concept of sustainability in the business environment has been around for a while but it’s still not being embraced enthusiastically by all, despite the consequences.

Photo credits: Protea Hotels by Marriott®

‘Having witnessed the negative effects wrought by the corporate world on the environment and society, it is no wonder the millennial generation wants a different approach,’ says Danny Bryer, the director of sales, marketing and revenue management for Protea Hotels by Marriott®. ‘Now that young adults make up a large proportion of the market, it would be short-sighted to ignore the focus on a sustainable world that this market group demands.’

While there’s no question that businesses need to incorporate the principles of sustainability into their everyday functions, it’s not that straightforward.

‘Ultimately, if applying these principles means that costs go up, no business is likely to jump on board,’ Bryer admits. ‘So, the solution is to find ways to make sustainability profitable.’

A good starting point is to ensure that business activities align with what the public is looking for from a sustainability perspective. ‘A viable approach is to identify particular themes of sustainability that support your market’s view, and to look for the means to deliver on these in profitable ways,’ Bryer advises.

Some of the themes to consider include supporting local people – the environment, human rights, and the supply chain. This helps identify areas to concentrate on so there is no risk of a haphazard approach. Global trends include building working environments that encourage diversity to advance opportunities for marginalised sectors of society.

‘In South Africa, we have joined forces with a recruitment firm with a difference. They identify unemployed youth with potential and train them to fill entry-level positions in our hotels.’

A big focus for Protea Hotels by Marriott® is to actively stimulate economies at a local level by focusing on procurement. For instance, Protea Hotels by Marriott® provides quality coffee for its guests by going the Fairtrade route to source coffee suppliers. Rural coffee growers in other African countries are given the

opportunity to sell their produce to a corporate market – something that would otherwise be beyond their capacity.

The range of construction choices when new hotels are built is also a sphere of attention. Guidance is given to hotel owners and developers so that the environment is protected and owners still reap financial benefits over the long-term.

Taking these sustainability issues into account helps to grow a loyal customer base and contributes to a better world. n

Danny Bryer, director of sales, marketing and revenue management at Protea Hotels by Marriott®.

Protea Hotels by Marriott® is the leading hospitality brand in Africa and one of the most widely recognised brands in Africa. The hotel group, owned by Marriott International, forms part of Marriott’s global brand portfolio made up of 30 leading brands that operate more than 6 000 hotels in 122 countries. For more information, visit proteahotels.com.

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FINANCE

Does cash flow stand in the way of African expansion for SMEs?

By Kevin Vlietman, commercial executive at Transaction Capital Business Solutions

SME owners, just like any other big business owners, constantly consider ways in which to expand their business reach and compliment their local growth. It is in this phase that thoughts of expanding into Africa might seem far too big a reach for small businesses. But it shouldn’t…

Africa is well geared to support the expansion of SMEs on the continent. If we consider Nigeria’s SME sector – which contributes 100% of the total manufacturing output and 70% of industrial employment – there is a strong business case for growth into Africa. Therefore, there is a compelling argument to be made that no matter what the size of the business – if done correctly and by taking into consideration Africa’s complexities – growth in Africa can be a strong reality for the SME sector.

Proceed with caution However, as exciting as expanding business borders may be to owners, it can be a daunting experience and comes

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with risk. The decision to expand should always be taken with precaution. Before taking the plunge, here are five things you may want to consider or research before the big move: • Firstly, decide which country you want to expand into, bearing in mind that not all African business markets are the same. Ensuring that your service offerings are aligned to the demand in a particular country is key to your planned outreach.

• Another big challenge is how to establish a presence in the market – the right way. Often, the key is finding the right partner to introduce you to the right industry players and show you ‘the ropes’. Networking and acquainting yourself with other like-minded business owners/partners is therefore essential – you never

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FINANCE

know what can come out of the relationships you build.

• Pay attention to the regulations and tax systems of the country you wish to expand into. Some countries have specific capital requirements, which means that a certain amount of money is needed to invest in registering the business before trading begins.

• Language barriers – it may seem like a small thing, but if you are expanding to a country where English is not one of the primary languages, it can be very challenging to network or trade with local businesses.

• Expanding a business can be costly and time consuming. In some instances, depending on the nature of the business, you might be required to relocate to the specific country for a period of time, depending on your business needs, to set up and take care of start-up logistics and requirements.

Photo credit: Transaction Capital Business Solutions

Taking the plunge For any small business, growth and expansion can be risky. However, if you have done your research and the numbers add up, don’t be afraid to take the plunge – but managed the risk by ensuring that you have taken care of all that is required beforehand.

However, as you consider your options, remember that one of the most important considerations of any expansion plan is the capital requirement to support the move. Effective working capital management forms the cornerstone to any business – whether South African, or expanding into Africa – and it is important that you make sure your house is in order and that you have a solution in place for the effective and consistent management of cash flow to avoid payment obstacles. This is even more important in Africa – where often you are paying/being paid in foreign currencies.

The secret is being able to raise sufficient working capital and ensure strong cash flow within your business, always.

For instance, take a business owner who has been thinking about expanding into Africa but doesn’t have enough capital to fund it. Without a proper cash flow strategy or the extra cash to fall back on, the prospect of expanding is unlikely and negates the opportunity to grow and expand. However, there are options available to SMEs specifically that may not have this critical component in place. So, what are the funding/financing solutions that are available to SME organisations examining growth into African?

Debtor financing and invoice discounting Invoice discounting, or debtor factoring is one of the easiest ways to avoid having to wait 60 or 90 days to get paid by your debtors. By converting existing invoices into instant cash, through the payment of a small monthly instalment, an invoice discounting organisation will manage your invoices and refund you 75% of the amount

owed to you immediately. This gives you access to unlimited cash flow while funding future orders, all while managing your cash flow.

Trade finance and property-backed lending Property-backed lending is a business loan that you take out against your personal/business assets/collateral. This option allows you to borrow the money you need against your residential property. In other words, if you can’t get finance to expand your business, then asset-backed lending can provide that extra cash.

However, remember that the amounts borrowed must be repaid in an equal instalment over a fixed period.

Alternatively, you can apply for an overdraft facility, which allows you to pay the interest portion of monies borrowed, monthly.

We all understand that business expansion and growth is centred in strong cash flow and working capital management. Therefore, financial considerations should be the first point of order before moving into Africa. While it’s not difficult to sort out your cash flow, it is challenging to find the right partner to help you get on track. There is a smarter way to go about your cash flow solutions to ensure your business survives the leaner months, and to provide for exciting opportunities. However, pick your growth partner wisely. n

Kevin Vlietman, commercial executive at Transaction Capital Solutions is energised and passionate about innovation, commercial credit risk and the SME market in South Africa.

Transaction Capital Business Solutions provides cash when you need it most. You’ll need to qualify and meet the company’s criteria and run a good business, but when traditional lines of funding and overdraft facilities are not an option, we are. As an established company providing funding to a variety of businesses throughout South Africa, we are known for working with our clients to meet their very specific and unique needs.

Transaction Capital Business Solutions works with mostly smallto medium-sized businesses that are reaching for the next phase of growth and require innovative, non-traditional means of funds.

We have excellent market share in the manufacturing, printing, packaging, engineering and road transport industries, and are very proud of what our clients have accomplished. For more information, visit http://tcbusiness.co.za/.

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HUMAN RESOURCES

Can you afford not to be a leader?

By Brian Eagar, founder and CEO of TowerStone

Many like to hide behind the premise that they are not a born leader and consider themselves exempt from contributing to a better future for all. However, looking at the world today, filled with greed, violence, environmental destruction and poverty, can you really afford not to be a leader?

Criticising our leaders seems to be a modern society trend, and social media makes it so easy. Agreed, there are many leaders who are not fulfilling their responsibilities as the custodians of our countries, our economies, the environment and ultimately our wellbeing. But are we looking to ourselves for the solution? And if we are not working towards the solution, are we not also accountable for the devastation?

We can’t afford to be complacent You will only change what you really care about. This is why it is so sad that many believe that leadership is action free from emotion. Leadership is emotion. Inspiring your team and valuing their contribution can no longer be disregarded as the ‘soft and fluffy stuff’. In fact, this is the hardest and most important focus area if an organisation is to be successful and sustainable.

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Kevin Murray, Richard Leider, and many others share how neuroscience proves that having a sense of common purpose has a profound impact on how we show up.

Anyone can choose to positively impact those around them. If you make others feel insignificant or insecure their brains will release cortisol, which instils fear and causes them to disengage. But if you inspire fulfilment and make others feel valued and worthy, you will encourage the release of oxytocin, helping them to connect emotionally with a common purpose. Ultimately, if everyone brings their hands, minds and hearts to work, it translates into business results.

We can’t afford to have a short-term focus It is vital to invest in your own and your key talent’s leadership capability, even if it carries short-term risks and costs. Investing in the future is always risky because

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HUMAN RESOURCES

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Ultimately, if everyone brings their hands, minds and hearts to work, it translates into business results.”

you don’t know what tomorrow brings, but for this same reason it is so necessary.

If you don’t prepare for the future you might not have a place in it. Failing to invest in building talent now could result in failing to have the capacity to deliver when the opportunity comes. We cannot sacrifice long-term success for short-term gain. It might help balance the budget, but it will harm the sustainability of your company and consequently your industry’s future and the country in which you operate. This will then have a further negative impact on your company.

We can’t afford to be self-serving Leadership is not about enriching yourself or even your company. It is about contributing to a society that enriches the lives of everyone. Of course, you make decisions that support the sustainability of your company, but the sustainability of your company must support the sustainability of society. And perhaps even more importantly, it must inspire others to follow your example.

It is everyone’s responsibility to invest in developing themselves and those around them. The more people who begin to display compassion, the more compassion will be ignited in others and the less violence we will see. The more we display integrity, the more others will follow our example and the less corruption and greed will manifest.

You don’t have to be a bad leader to fail, you only need to be an absent leader. The reverse is also true: there is no such thing as a good leader, there are only purposeful leaders. Anyone can be mindful of how they impact others and, more importantly, how they can impact others to inspire change.

In a world where we all shift the responsibility to someone else, everyone loses together. For more information, visit towerstone-global.com. n

Brian Eagar is a founder and CEO of TowerStone, a leadership centre that empowers leaders to build a values-driven culture for sustainable success.

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Choose the correct preservatives treated timber for your end application (H classes)

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Advertorial: South African Wood Preservers Association

Preservative treated timber SA Wood Preservers offers advice about treating timber and the types of wood preservation and their hazard classes for end-use applications.

The natural durability of South Africa’s commerciallygrown species – such as Pinus and Eucalyptus – is low, rendering it susceptible to insect and fungal attack. It is important to treat the timber with a wood preservative.

There are two types of wood preservation – primary (industrial) and secondary (DIY). In primary preservation, wood is impregnated (pressure treated) with an industrial chemical wood preservative, such as CCA, TBTN-P, or creosote. This process increases the long-term durability and resistance to fungi and insect attack. Primary preservation is prescribed in South African National Standards (SANS), NRCS Compulsory Specifications and Building Regulations.

Secondary preservation is a surface application used for supplemental (preventative) and/or remedial (corrective) purposes and applied by hand, for example for treating previously untreated timber or exposed ends of machined pressure-treated timber. Protective wood sealers or varnishes are not regarded as secondary preservatives unless they contain active ingredients (biocide). Without active ingredients, such finishes merely protect against weathering (moisture and UV rays), and not fungal and/or insect attack.

Primary preservation of timber is categorised into different hazard or ‘H’ classes for different end-use applications:

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When specifying pressure-treated timber, be sure to choose the correct H class for your intended application and apply remedial preservative to all cross-cut and exposed areas (except for cross-cut ends exposed in

H CLASSES

PRESERVATIVE TYPES

TYPICAL END-USES

PROTECTION AGAINST

H2 – Dry interior above ground

• CCA, CuAz, ACQ and Boron TBTN-P and ZP

Roof trusses frame wall construction interior doors and joinery

Insect attack and low decay risk

H3 – Exterior above ground

• CCA, CuAz & ACQ • Creosote

Decking, cladding, exposed Fungal attack and insects structural

H4 – Exterior in ground

• CCA, CuAz & ACQ • Creosote

Timber used in ground; poles used in light structures, fencing, landscaping and garden features

H5 – Fresh water and heavy wet soil contact

• CCA, CuAz & ACQ • Creosote

Jetties, walkways, poles/ posts used as foundation supports in permanent timber structures

H6 – Marine

CCA plus Creosote

Jetties, quays, marine walkways, retaining walls and barriers

Fungal decay and insect attack

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Advertorial: South African Wood Preservers Association

ground, fresh water or marine applications). Apply a suitable penetrating wood sealer and regularly maintain it if a natural non-weathered look of the exterior timber is desired.

How to plant a pole/post When planting a pole or post, do not plant them inside an encapsulated concrete base. Instead, use a collar or compacted stone and soil with or without a solid (cured) concrete base.

As a safety precaution when machining CCA-treated wood, wear a dust mask, gloves and safety glasses to protect your eyes. Do not make baby toys, furniture, food utensils or store food or water in containers made from CCA-treated wood. CCA-treated wood should also not be used in beehives.

Treated wood waste is not regarded as hazardous waste material and should either be reused for applications where treated wood was intended, or be disposed of at a registered disposal or landfill site. Do not

burn treated wood off-cuts and do not use it for firewood or for food preparation. Do not use treated wood shavings and sawdust as mulch in gardens, or for animal litter or bedding where it may become a component of animal feed.

For more information about wood preservation in South Africa, please visit www.sawpa.co.za. n

SAWPA W www.sawpa.co.za.

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INFORMATION TECHNOLOGY

Securing your growing home network

By Paul Williams, country manager – SADC at Fortinet

With the increase in the number of people working from home, more corporate offices are being linked to hyper-connected and often poorly-secured home networks. The implications are significant.

The number of connected devices in South African homes are expected to increase exponentially. Smart TVs, connected appliances, online fitness devices, entertainment and gaming systems, smart cars, connected water and power meters, climate control systems, and online home security systems are all available. Many home networks also include wireless medical devices, and tools designed to track and monitor children or elderly family members.

All these devices are connected to the Internet through a home Wi-Fi system, or increasingly, a Home Area Network (HAN) combined with Network-Attached Storage (NAS) and cloud-based applications that are accessible from any device in any location. We are also now beginning to see

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“

Before you buy a device that wants to connect to your network, ask some questions.�

interconnectivity being developed between these devices, as well as connectivity to other systems and networks to enable information and entertainment sharing with friends and family, or data collection by device manufacturers and service or utility providers.

Significant implications For corporates with personnel working from home, these hyper-connected and often poorly-secured home networks have significant implications.

Some companies are stepping up and offering user awareness training programmes for remote workers, especially for employees with access to sensitive data.

But learning how to avoid phishing and social engineering attacks does not address the relatively new problem of hyper-connected home networks.

As our work and social networks expand into the home, and the potential threat footprint in our homes continues to grow, it is critical that we take a fresh look at how we are protecting ourselves from the growing number of networks we interact with.

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INFORMATION TECHNOLOGY

A three-phase approach For the enterprise, we recommend a three-phase approach to security based around learning what is on your network, dividing the network into separated segments and then implementing appropriate security that provides critical protections without compromising functionality and interoperability.

Learn With the increasing number of portable IoT and other devices being installed or used by family members and friends visiting your home, it may be difficult to know exactly what is on your home network at any given time.

Even harder is controlling what they may do.

Home security tools can identify devices looking to connect to the Internet through your Wi-Fi network. Many of them can be easily configured to provide access to your guest network, while restricting and monitoring the traffic they are generating, the applications and home resources they are able to access, the amount of time they can be connected online, and the places on the Internet they may connect to.

Do your homework: Before you buy a device that wants to connect to your network, ask some questions. Do you really need to be able to look inside your refrigerator from the store? Does your coffee maker need to be able to order its own filters?

Next, research these devices relating to security. Are there known vulnerabilities? Many connected devices include vulnerable software or back doors that make them potential targets. Can you add passwords? Can they be updated if a vulnerability is detected?

This is particularly important before you add connected home healthcare devices that monitor patients or regulate medicines.

Segment

Protect Home networks and devices tend to become infected because security is notoriously lax. Here are a few security tips for your home network: • Keep a list of all the devices and critical applications on your network, including the manufacturer. Set up a weekly routine to check for updates for physical and virtual devices, operating systems, applications, and browsers.

Of course, this is easier said than done. Browsers such as Google allow you to set up automated searches that alert you when news on a topic is found, or simply provide you with a daily email with discovered links.

• Get antivirus and anti-malware software, keep it updated, and run it regularly. But first, do your research. Products pretending to be security tools are actually disguised malware. Also, remember that no software is 100% effective, so set up a regular schedule, say once a month, where you use a second or third security solution to scan your device or network. Many solutions provide a free online version or let you run a free demo for a period.

• Get a firewall. Most home security packages include a firewall option. Turn it on. Even the default settings are better than doing nothing.

• Use good password hygiene. Change your passwords every three to six months. Use an encrypted password locker to store passwords. Use different passwords for different applications. Don’t mix your personal and work passwords.

Given the rate at which technology is changing, you can no longer afford to simply load an antivirus tool onto your laptop and think you are going to be protected. As we begin to use and interconnect more and more devices – and blend our personal, social, and work lives –security is increasingly important. It is critical that you begin to develop a strategy now for learning, segmenting, and protecting your network, resources, data, and privacy. n

Paul Williams, country manager – SADC at Fortinet

Photo credit: Fortinet Africa

Many organisations are implementing some sort of network segmentation strategy to protect their resources.

Visitors and unauthorised devices are connected to a guest network. Critical resources, such as financial data, are isolated from the rest of the network. And sensitive communications are encrypted. Homeowners can do many of the same things: • Buy separate wireless access points to separate things like gaming systems and IoT devices from your PCs and laptops.

• Set up a wireless guest network for visitors or new devices. Most access points allow you to restrict access, set up firewalls, and monitor guest behaviour.

• To protect your critical resources, consider purchasing a separate, inexpensive device, such as a Chromebook, that is only used for online banking, for example. You

could also set up a separate virtual device on your laptop or PC for banking online.

• As much as possible, keep your work and personal devices separated. Set up a separate connection for work, only connect through a VPN tunnel, and consider encrypting sensitive data travelling back and forth between your home and corporate networks.

Fortinet is a global leader and innovator in network security. Its mission is to deliver the most innovative, high-performing network security platform to secure and simplify customers’ IT infrastructure. It provides network security appliances and security subscription services for carriers, data centres, enterprises, distributed offices and MSSPs. For more information, visit www.fortinet.com.

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INFRASTRUCTURE DEVELOPMENT

WorleyParsons rolls out ESD programme South Africa faces countless socio-economic challenges from poverty to inequality.

Project delivery and engineering consultancy WorleyParsons RSA understands that the creation of employment can contribute towards addressing these challenges and that businesses serve a critical role in driving inclusivity and sustainability within the environments in which they operate.

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Empowerment and collaboration with WorleyParsons RSA will lead to skilled resources and more opportunities for ESD partner companies.”

Photo credit: WorleyParsons RSA

WorleyParsons’ corporate social responsibility philosophy espouses the concept of active citizenry, which calls for citizens to play their part in making a difference either in their personal capacity and/or as members of organisations or institutions they own or work for. WorleyParsons RSA is fully committed to transformation within South Africa and develops its structure and systems to actively contribute to this vision.

An example of this commitment is in its enterprise and supplier development (ESD) programme that shows WorleyParsons RSA’s understanding of complying in spirit and not just merely ticking boxes.

Building on the success of its Enterprise Development (ED) programme, which saw a combined turnover growth of the initial ED partner companies by 204% and the creation of over 100 permanent and temporary jobs in South Africa, WorleyParsons RSA has partnered with black-owned SMEs that operate in the engineering sector (mining, water, energy and infrastructure) to jointly deliver services and, by doing so, expose these SMEs to worldclass delivery systems and transfer skills and capabilities to these SMEs to enable them to grow.

Referred to as the ESD programme, WorleyParsons RSA is also assisting ESD partner companies with branding, marketing collateral, legal compliance, market positioning, financial compliance and introducing potential clients, that

Denver Dreyer, Chief Executive Officer at WorleyParsons RSA

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INFRASTRUCTURE DEVELOPMENT

WorleyParsons RSA is already servicing, to ESP partner companies. Conversely these SMEs have introduced WorleyParsons RSA to their own client base, enabling a mutually-beneficial relationship of growth. This empowerment and collaboration with WorleyParsons RSA will lead to skilled resources and more opportunities for ESD partner companies; in turn leading to growth of ESD companies and potential for job creation and/or job preservation.

WorleyParsons RSA’s ESD partner companies are subdivided into three levels:

Level 1: ED core partner companies The following companies are fully participating in the ED programme with development outlines specific to their company needs and requirements: • Originally constituted as ISF Services in 2007, the ISF Group is now a highly diversified, integrated engineering, procurement, construction and management (EPCM) company, supplying specialised services to the energy, water, ICT, transportation and construction sectors.

• Latita Energy Pty (Ltd) is a BEE Level 1 rated 100% black women-owned company in operation since 2012. Latita is a licenced wholesale supplier and specialises in the supply and distribution of bulk petroleum products, logistics services, and other commodity sourcing.

• UNN Surveys is a dynamic and diverse company that specialises in land development, land management, and engineering consulting. UNN Surveys offer its clients comprehensive solutions in the infrastructure and development sectors. UNN Surveys is a 100% black women-owned entity and has been in operation since 2004.

• Incorporated in South Africa and 100% black-owned, Mancor is a specialist engineering and project management firm providing 21st Century solutions to developers, and are providers of infrastructure services across a variety of sectors including energy, mining, water, government and engineering and construction.

• A leading multi-disciplinary consulting engineering, town and regional planning company based in South Africa with 52% black ownership, MDV Kalahari is a result of several partnership changes of Mostert, van den Berg and de Leeuw, which was established in 1959.

• Risimati Consulting Engineers, owned and managed by historically-disadvantaged individuals, was established and registered in 1999. Risimati specialises in providing engineering solutions in the civil, structural,

“ SABI Vol 6 Issue.indd 49

WorleyParsons RSA is fully committed to transformation within South Africa and develops its structure and systems to actively contribute to this vision.”

“

This empowerment and collaboration with WorleyParsons RSA will lead to skilled resources and more opportunities for ESD partner companies.”

building, mechanical and electrical disciplines.

• iX Engineers (Pty) Ltd was established and registered in July 2016 following the acquisition of the public infrastructure business unit of WorleyParsons RSA and the consulting infrastructure business of Black Jills Engineers (BJE). iX Engineers is a majority blackowned consulting engineering company focusing on the private and public infrastructure sector and provides professional services for the design, development and through-life-support of private and public infrastructure. These projects are delivered through engineering and project management skills that specialise in civil, structural, electrical, mechanical, process engineering, project and portfolio management, cost control, SHERQ and financial management. The key staff at iX Engineers has more than 35 years’ experience in the infrastructure sector in both the consulting and project delivery markets that commenced as KV3 Engineers and then as WorleyParsons RSA, as well as the more than eight years’ experience of staff joining from BJE.

Level 2 – ESD extended partner companies WorleyParsons RSA also works closely with the following black-owned SMEs (some are graduates from the ED programme) as suppliers and continue to seek opportunities with them: 1.

NBI Quantity Surveying 2.

Angarhela Trading and Projects 3.

T2 Tech Engineers 4.

Kgato Project Management 5. Makhurumola

Level 3 – ESD alumni partner companies To ensure continued working relationship with companies that graduate from the ESD programme and grow its suppliers, WorleyParsons RSA continues to partner with the following companies: 1.

Shilangane Engineering 2.

MGD Consulting Engineers 3.

Gemini – GIS and Environmental Services 4.

Hape Coal Services 5. Gridbow 6.

Shaweni Consulting Engineers For more information, visit www.worleyparsons.com. n

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2017/08/30 11:06 AM

INSURANCE

Business after junk: insurance has never been more important

By Morné Stoltz, MiWay head of business insurance

The downgrade of South Africa’s bonds to junk status heralds tough times for business, with SMEs likely to be hard hit. The pressure to cut costs should not tempt owners to skimp on insurance – being properly covered is critical to long-term survival.

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INSURANCE

In general, depressed economic activity puts pressure on all business, SMEs included.

And, with shallower pockets than corporates, SMEs inevitably look for ways to cut overheads. For many, insurance is already seen as a grudge purchase and it is often a seemingly obvious target for cost-cutting.

This would be a mistake. Risk is always present and wise business people take proactive steps to ensure that they understand their business risks and mitigate them.

Insurance remains the best and cheapest way for small companies to mitigate risk and ensure that it doesn’t result in business failure. With fewer resources behind it, one could argue that an SME is more dependent on insurance than a large corporation.

For example, a customer injury at its business premises or a defective product that causes injury could both result in substantial claims for damage. The purchase of new equipment for example, could make a business a desirable target for thieves. These are all likely scenarios.

Having the right insurance cover in place spells the difference between survival and bankruptcy for many SMEs when disaster strikes.

Furthermore, the right insurance partner can play a more strategic role than simply providing insurance cover. A reputable insurer recognises that it has a vested interest in helping its clients’ businesses to succeed.

Professional risk management is invaluable, particularly when it comes to complex, poorly-understood risks such as supply chain risk. Every business is part of a supply chain, something that creates a complex risk landscape. SMEs may find it hard to come to grips with the impact of a supplier’s inability to supply a product or service on time, or indeed a disaster making it impossible for the SME itself to honour its contractual obligations.

There’s no doubt that trading conditions will be tough for the foreseeable future. SME owners are resourceful and tough – they have to be. Using insurance wisely to understand and mitigate risk makes their chances of surviving and prospering much greater, while the lack of insurance could give fate the upper hand. n

According to the president of the AHI, Bernard Swanepoel, South Africa’s debt downgrade to junk status is likely to usher in economic tough times. He argues that downward pressure on the rand and more expensive debt means less money for infrastructure projects, which will reduce government procurement from SMEs. In addition, less spending on service delivery could mean SMEs will have to make contingency plans for power and water interruptions, among others.

Morné Stoltz, MiWay head of business insurance

MiWay Insurance Limited (‘MiWay’) is a direct short-term insurer and a financial services company, offering customers a range of short-term insurance products including motor, household, homeowners, business insurance as well as liability cover. MiWay is wholly owned by Santam, a blue-chip JSE-listed company. MiWay is an Authorised Financial Services Provider (Licence no: 33970)

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ADVERTORIAL: RICS

Slashing infrastructure investment risk Until now, despite rapid globalisation with investment funds flowing across borders and money pouring into constructed assets, the construction profession has lacked a common framework for classifying and reporting construction costs.

Launched in July this year, the new International Construction Measurement Standards (ICMS), a universal system that enables global comparison of construction projects, will revolutionise the global construction industry by improving cost prediction in infrastructure projects. ‘Financing desperately-needed buildings and infrastructure, including railways, bridges, schools and hospitals, can often be risky because infrastructure projects across the globe categorise and forecast construction costs differently,’ explains TC Chetty, RICS country manager for South Africa.

Tackling these problems head on, a group of influential sector players formed the ICMS Coalition during a meeting at the International Monetary Fund in June 2015.

Construction is a large contributor to national economies, and governments worldwide need to spend

vast sums of public money on essential infrastructure.

Inconsistent information causes poor cost prediction that impedes investment and can cause mega projects to run over budget. Overall, close to $78 trillion needs to be spent globally between 2014 and 2025 on infrastructure.

The ICMS Coalition saw the need to derisk these projects for public and private sector investors.

The new ICMS standard enables better comparison to improve investor confidence and attract more private sector funding. A number of leading organisations have publicly announced their support for ICMS by registering as ICMS partners, committing to its future use.

The ICMS Coalition believes that financially constrained governments should be able to better understand information to make the right construction investment decisions and attract more private funding to help improve return on investment. For more information, visit www.rics.org. n

RICS South Africa W www@rics.org

RICS T +00 000 000 0000 E +00 000 000 0000 W ????

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INVESTMENT

Hedge funds 101

By George Herman, director and chief investment officer, Citadel

While hedge funds are increasingly being used in South Africa, they remain largely misunderstood by the average investor. Here’s what you need to know.

Hedge funds have been perceived as elitist investments or only for high net-worth individuals.

This is a pity as hedge funds can offer investors excellent returns with generally lower risk. They are essentially funds that aim to generate returns that are independent of the direction of the underlying market.

Their returns should thus be uncorrelated to the bond or equity market so that they provide your overall portfolio with a hedge during unfavourable periods for that particular market.

Hedge funds can adopt a variety of investment strategies, depending on their specific nature and the asset classes they take exposure in.

Positions can be taken in the physical (equity, bond or currency) or via a derivative position. Hedge funds gain their exposure predominantly via equities, bonds, futures, contract for differences (CFDs), options on futures, and

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swaps. A fund would typically take a position in an asset in which they have a high level of conviction and expect to perform well. They would then take the opposite position in a similar asset by shorting an asset that they believe will reduce in value or would battle to generate a positive return. This combination then leaves the fund with very little nett exposure to the direction of the underlying asset class, but merely with the relative performance of the two assets. This is the ultimate expression of the core skill of a fund manager: security selection.

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Hedge funds can adopt a variety of investment strategies, depending on their specific nature and the asset classes they take exposure in.�

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INVESTMENT

A useful part of an investment portfolio Firstly, they provide returns that are uncorrelated to both the equity and the bond markets. So, by adding hedge funds to an otherwise well-diversified portfolio, it improves the overall risk-return ratio of the portfolio. And secondly, hedge funds should experience lower volatility and smaller drawdowns than pure equity or bond portfolios, making them ideal vehicles for long-term wealth preservation.

Hedge funds do carry risk Some are exposed to market risk and this will vary depending on the strategy and category of hedge fund.

Market neutral funds have very little directional market exposure, whereas macro hedge funds may have large, concentrated bets on certain global outcomes. This is by far the most important issue when analysing hedge funds as their ability to generate returns is inexorably linked to the amount of market risk they take.

Hedge funds face credit risk on two major fronts: they may own fixed income securities that have differing degrees of credit exposure; and they implement their positions predominantly using derivative instruments. If these instruments are not listed, the fund will have overthe-counter credit exposure to the derivative contract counterparties.

Lastly, there is key-man risk. Many hedge funds revolve around the expertise of one or more key individuals. Their presence and commitment is essential to the long-term success of a fund.

Tighter regulation New hedge fund regulation came into effect during 2016, which has changed the perception of them as carrying a high degree of regulatory risk. It is important to note that hedge funds actually have less market risk and lower volatility than traditional long-only funds. The perception that hedge funds have higher risk comes from their sophistication and often secretive operations. None of these need to be feared as all hedge fund activity is under regulated scrutiny either by regulators or the exchanges via which they transact.

South Africa is also one of the leading domiciles in the world when it comes to hedge fund regulation. However, the South African financial markets are more concentrated and liquidity is less than in most global markets. This does constrain our hedge funds in terms of size, risk budget, and strategy diversification.

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Hedge funds have less market risk and lower volatility than traditional long-only funds.”

Skills to look for in a hedge fund manager Good hedge fund managers require a combination of unique skills. Some of these include: • Independent thinking. Common, well-known trades only get you into a stampede where liquidity disappears when the herd becomes fearful.

• A methodical, disciplined trader as opposed to an emotional ‘noise’ trader.

• Somebody who has shorted regularly before. Currency, bond and derivative trading typically provides such experience. Analysts that become hedge fund managers seldom have the aptitude and experience to dispassionately approach any position.

• Good understanding of and respect for risk.

Hedge funds are designed to take advantage of certain identifiable market opportunities and can enhance a portfolio’s returns while also lowering the risk. They are certainly worth consideration as an investment vehicle but, as with all investments, it pays to do your research before placing your money in them. n [Kindly note that this article does not constitute financial advice. All information and opinions provided are of a general nature and are not intended to address the circumstances of any individual.]

George Herman, director and chief investment officer at Citadel, is a Chartered Alternative Investment Analyst (CAIA)

A member of the Peregrine Group, Citadel Investment Services Proprietary Limited is licensed as a financial services provider in terms of the Financial Advisory and Intermediary Services Act, 2002.

Citadel is a specialist wealth manager with over 20 years’ experience in providing bespoke solutions for high net worth individuals. Through character-rich engagement and building strong relationships based on mutual respect and trust, Citadel enables its clients to explore the true potential of their hard-earned money. The best fiduciary, risk and asset management expertise is used to strategise, implement and manage a financial roadmap for its clients and their family. For more information, visit www.citadel.co.za or @Citadel SA

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LEGAL: COMPANY PROFILE

Great service, great results At Myers Attorneys, professional legal services are specifically tailored to clients’ needs and are delivered in a refreshingly friendly way. Emma Dawson talks to the company’s founder and senior partner, Caryn Myers, about her firm’s commitment to being ‘small enough to care and big enough to make a difference’.

For as long as she can remember, Caryn Myers wanted to be a lawyer and completing her BA and Honours in Political Science at the University of Natal (Pietermaritzburg), and later her LLB at UNISA, came naturally to her. She commenced her articles in 2003 and was admitted as an attorney in 2005.

In 2006, Caryn launched Oriole Consulting to focus on compliance consulting – BBBEE, employment equity, skills development, labour and corporate governance.

However, as her clients discovered that she was a lawyer, demand for her legal services escalated. ‘In 2009, I opened Myers Attorneys to service the needs of these clients,’ she explains. ‘Today Oriole Consulting and Myers Attorneys operate independently of each other but their synergy makes it perfect for referrals where appropriate.

I run both companies but have two amazing women who run the day to day operations in each – Natalie Grundlingh at Oriole and Giuseppina Amore at Myers Attorneys,’ Caryn enthuses.

‘From a day-to-day perspective I run the commercial department at Myers Attorneys and compliance relating to corporate governance and some BBBEE work at Oriole.’

Consultation and collaboration Caryn has a passion for delivering innovative tailor-made services by finding the right solution for her clients

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Myers Attorneys is a clientorientated law firm that offers presence, professionalism and expertise to all its clients.”

through consultation and collaboration. She delivers her best work when she’s able to develop and share strategic and effective solutions with her clients by anticipating challenges in today’s constantly evolving regulatory and business environment. Caryn specialises in commercial law and consults across the board within the arena of commercial, compliance and empowerment law.

Heading up the day-to-day operations at Myers Attorneys, Giuseppina completed her BA and LLB degrees at Wits University before taking a gap year to study full-time at Wits for a Diploma in translations from/ to English, Italian and French. She was admitted as an attorney in 1996, as a conveyancer in 1999, and as a notary in 2001.

Dealing with clients varying needs and requirements is one of the aspects of her work that Giuseppina particularly enjoys; and her significant experience provides her talent for presenting appropriate services suited to those needs.

Photo credit: Sarah Midgley

Caryn Myers, senior partner at Myers Attorneys.

Natalie Grundlingh, consultant at Oriole Consulting.

Giuseppina Amore, attorney, conveyancer and notary at Myers Attorneys.

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Caryn’s favourite quote: “Don’t raise your voice, improve your argument.” Archbishop Desmond Tutu

It starts with great service and ends with results Based in Johannesburg, Myers Attorneys is a clientorientated law firm that offers presence, professionalism and expertise to all its clients. And, percolating throughout the firm is the team’s proudly maintained vision of ‘small enough to care, big enough to make a difference’.

‘Our approach to professionalism and service excellence is based on the highest possible standards of integrity, mutual respect and dedication in everything we do for our clients,’ Caryn insists. ‘What’s more, we draw on the strengths of the knowledgeable and skilled individuals who represent a variety of viewpoints and experiences within our team,’ she adds. Backed by the talent, long-term commitment and support of its staff, the team at Myers Attorneys is committed to understanding and meeting clients’ needs with timely, innovative and relevant advice.

Commercial consultancy services South Africa has a well-developed and formallyregulated company law regime, and all South African businesses are governed by the New Companies Act No 71 of 2008 that has been modernised and brought into line with international best practices. In particular, this applies to public companies, communications and corporate governance. It is also harmonised with other South African legislation, such as the Promotion of

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Access to Information Act (PAIA) and the Electronic Communications and Transactions (ECT) Act. ‘We have a thorough working knowledge of the legal implications of the New Companies Act and are able to assist clients with the formation of commercial contracts, as well as dispute resolution, agreement structuring (association, joint venture, non-disclosure, shareholders), policy documents, mergers, acquisitions and most other areas of commercial and corporate law,’ says Caryn.

‘We also have the expertise to assist with new company registrations, directors’ resignations and appointments, name changes, corporate governance and compliance, and company structures. And, in a world where information abuse and exploitation is rampant, we provide clarity and assist with developing solutions in line with the Protection of Personal Information (POPI) Act, which includes staff training, POPI audits and compliance.’

Conveyancing and notarial services Immovable property transactions are involved and complicated. Special knowledge and skills are required to accomplish a successful transfer and the entire conveyancing process hinges on the competency of the conveyancer. ‘We combine our knowledge of real estate with our expertise in the deeds registry process, sectional title process, property law, corporate law, family law, insolvency law, and the law relating to the administration of deceased estates to provide clients with specialised professional services,’ notes Caryn.

Certain contracts and transactions may only be prepared and signed by a notary, and Myers Attorneys offers notarial services that include drafting and registering antenuptial contracts, bonds over movable property, servitudes, leases and cessions, as well as the authentication of documents.

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LEGAL: COMPANY PROFILE

Labour law and dispute resolution Absence of a written contract of employment by the first day of employment is not only in violation of The Basic Conditions of Employment Act but could also severely compromise an employer’s position in a labour dispute.

The most effective contract of employment will satisfy both employer and employee and the lawyers at Myers Attorneys are able to determine a balance to keep both sides satisfied while retaining a flexibility that will support the organisation’s growth in the future.

In addition to labour law, Myers Attorneys also assists with executive, standard, fixed-term and temporary employment agreements; restraint of trade and confidentiality agreements; and independent contractor agreements and letters of employment.

When it comes to dispute resolution, Myers Attorneys’ labour law specialists represent clients in labour court, provide guidance and valuable advice to employers and employees faced with labour disputes, and recommend an approach during these processes and advise on what to expect.

Litigation ‘Our litigation team is committed to providing accurate advice to further the interests of our broad spectrum of clients with a view to delivering service in a speedy manner with a willing approach, always striving to bring matters to conclusion in the most cost- and time-effective manner possible,’ Caryn maintains. ‘The approach of the litigation department allows our professionals to incorporate creative and out-of-the-box problem solving techniques that ensures tailored services, among which are civil litigation matters, debt collection, breach of contract, evictions, insolvency, and commercial litigation.’

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We draw on the strengths of the knowledgeable and skilled individuals who represent a variety of viewpoints and experiences within our team.”

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Giuseppina’s favourite quote: “Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.”

Robert Kiyosaki

Personal and family services Myers Attorneys provides clients with fast, reliable and easy to understand estate administration solutions. It offers clients professionally-drafted wills that facilitate the smooth and efficient winding up of an estate in the event of a debilitating accident or death. Myers Attorneys also offers a simple online form that clients can complete to initiate the drafting of a will.

When tying the knot, Myers Attorneys offers antenuptial contracts that give both parties confidence in the contract. The firm’s qualified professionals assist couples to find solutions and settle financial disagreements, and where appropriate recommends qualified professional counsellors/mediators to negotiate an out-of-court settlement in the event of divorce. ‘Importantly, we strive to bring the divorce process to finality as soon as possible and believe that a speedy resolution is best in these family matters.’

Where children are involved, Myers Attorneys provides in-depth legal advice according to its client’s specific circumstances. This includes child support, contact with children, children’s care and custody.

Grounded in ethics Myers Attorneys’ ethics are beautifully summed up by the words of Frankin D Roosevelt: ‘The credit belongs to the man who is actually in the arena – whose face is marred by dust and sweat and blood, who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause, who is best if he wins, knows the thrills of high achievement, and if he fails at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory or defeat.’ n

Trusts

Creating a trust is a popular estate planning strategy in which the founder donates assets to a trust that is held and administered by a nominated trustee for the benefit of a third-party beneficiary. However, when contemplating the establishment of a trust, it is imperative that the correct type of trust is identified to avoid incurring unnecessary or excessive costs. Myers Attorneys is highly competent in the establishment and administration of trusts and provides clients with the best solution based on their intentions and objectives.

Myers Attorneys T +27 011 346 2422 W www.myersattorneys.co.za

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MARKETING & COMMUNICATIONS

Are we ready for POPI? The Protection of Personal Information Act, 2013 (Act No. 4 of 2013), or POPI, has only been partially implemented, with the focus mainly on establishing a national Information Regulator. But many commentators believe that full implementation will probably not be delayed past 2018.

Teryl Schroenn, CEO of Accsys believes that most organisations are not adequately prepared for compliance. ‘At conferences, we see a small show of hands when asking how many have POPI-ready systems and processes in place.’

She asserts that a successful POPI rollout starts with total buy-in from senior executives and management.

‘Organisations need a strong committee with the authority to drive change. They’ll also require thorough guidance from legal, subject matter, technical and change management experts.’

Conditions It’s important to have at least a broad understanding of the Act. There are eight conditions that data collectors must meet:

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1. Making themselves accountable to the law 2. Limiting personal information collection and use to a minimum 3. Collecting data for a specified purpose only 4. Allowing third party processing only in terms of the original purpose 5. Preserving the quality of the data 6. Documenting how the data is processed, and informing the subject of its use and effect 7. Securing the integrity and confidentiality of the data 8. Ensuring the data subject has access to and control of their information.

Supervision The Act establishes an information regulator tasked with providing public services for and enforcing POPI. Data

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collectors must appoint an information officer as per the Promotion of Access to Information Act 2 of 2000.

To use personal information for certain purposes, data collectors must obtain authorisation from the regulator first. These include processing data outside its original purpose, linking it to data from third parties, or transferring it to a foreign country lacking adequate protection.

Rights Data subjects have specific rights regarding unsolicited electronic communications from direct marketers, being listed in public directories, and decisions made about them by automated decision-making processes.

Restrictions for transmitting personal information to foreign countries apply but don’t prohibit the data collector from doing so when necessary to their function.

Enforcement The Act dictates how complaints are processed, the conditions for warrants, search and seizure of data, how violations are assessed, and the right of a data collector

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Organisations need a strong committee with the authority to drive change.”

to appeal. Certain acts are unlawful and may carry a prison sentence of up to 10 years or a fine of up to R10 million. However, the Regulator will consider the nature and extent of each transgression.

Why should organisations implement POPI now?

‘While POPI provides a mandate for the cause, organisations should already be protecting their customers’ and employees’ information simply because it’s the right thing to do,’ Schroenn concludes. n [This summary is for information purposes only. Readers are encouraged to seek legal and technical counsel before addressing POPI.]

Accsys is a South African software company specialising in people management solutions. Its solutions are developed in South Africa with an emphasis on local workplace conditions to fulfil the purpose of providing strategic solutions for people who manage people. For more information, visit http://accsys.co.za.

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MARKET RESEARCH

10 ways to use drones to improve your business The rapidlygrowing global drone market presents a plethora of opportunities for companies to enhance their operations, or for new businesses to emerge.

With analysts putting the global drone market opportunities at between $11 billion and $13 billion by 2020, organisations stand to gain by harnessing the new capabilities unmanned aerial vehicles (UAVs) deliver. Nearly three million drones will be manufactured this year alone, and the global market revenue for drones is expected to top $11.2 billion by 2020.

Airborne Drones South Africa highlights 10 key areas where drones can offer compelling benefits: 1. Construction efficiencies – Drones offer construction firms and developers efficient new 2D and 3D mapping methods, as well as thermal and multi-spectral imaging and real-time data for Building Information Modelling. This allows for greater efficiencies from preconstruction through to maintenance phase.

2. Asset management – Currently the most compelling drone application for asset management and protection – whether for power lines, buildings, humans, wildlife or roads – they are deployed for rapid, efficient inventory and survey purposes.

3. Maintenance – Drones support ongoing routine facilities inspections at lower cost and risk, particularly in potentially hazardous areas or for tall structures.

They allow for wear and damage assessments – supported by technologies such as thermal imaging cameras – bypassing the need for ground crews and specialised equipment. They can also be used for routine deliveries of consumables and spares to reduce costs and potential downtime.

4. Agriculture – Advanced agriculture will depend on drone technologies for multiple applications, such as crop and irrigation inspection, precision spraying, mapping and security.

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5. Mapping – For developers, civil engineers and local authorities, drones mapping applications are an efficient geographic survey tool – even across challenging terrain and bodies of water.

6. Surveys and research – The use of drones for mapping and geographic surveys can also add significant value to marketers and brands researching target areas, as well as to public sector authorities confirming census data or assessing development needs.

7. Risk monitoring and claims assessment – For the insurance sector, drones efficiently assess population density, natural risk, property values and damages, enabling more accurate forecasting, more competitive products, and faster claims resolution.

8. Safety and security – Unlike satellite imaging, traditional aerial surveys, or human resources on the ground, drones can conduct highly-targeted surveillance with live feeds and no risk to human life.

In high-risk situations, such as civil unrest or natural disaster, drones allow for ongoing assessment of the situation, supporting rapid and appropriate response.

Drones can also be deployed for search and rescue purposes and potentially for emergency medical deliveries.

9. Film and multimedia – Already widely is use in this field, the potential to add new dimensions to multimedia is significant. Aerial visuals also offer opportunities to the real estate, hospitality and tourism sectors to enhance marketing and communications.

10. Drones-as-a-service – multiple new business opportunities now exist for the launch of specialist drone surveillance and survey services. For more information, visit www.airbornedrones.co. n

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MARINE & MARITIME

Addressing marine waste in Africa PETCO has partnered with The Sustainable Seas Trust to set up the communications hub for The African Marine Waste Network.

An ambitious collaboration between the 38 coastal and island states of Africa, the African Marine Waste Network (AWMN) represents the first dedicated approach to addressing marine waste at a pan-African level – an African contribution to solving a global crisis.

‘PETCO believes that the partnership with the Sustainable Seas Trust (SST) and the AMWN has great potential to unite key stakeholders in the PET value chain – government (national, provincial and local), the private sector, manufacturers, converters, bottlers, brand owners, recyclers, collectors, retailers, and consumers – to develop and implement plans to address the challenges of waste in the marine environment,’ says Cheri Scholtz, PETCO’s CEO. This initiative promises to be a game changer and is particularly timely following the first international UN Ocean Conference that took place in New York in June and focused on waste minimisation and improving mechanisms for environmentally-sound waste management, disposal and recycling.

At the opening of the Ocean Conference, the UN Secretary-General, António Guterres, said: ‘The special relationship between people and the ocean, which brings untold benefits for life, is under threat as never before.

The problems of the ocean – all created by human activity – can be reversed and prevented with decisive, coordinated action.’

Given the pressing issue of ocean pollution worldwide, the partnership between PETCO and the SST is well positioned to become a positive pathway for facilitating change and action.

Dr Tony Ribbink from SST adds: ‘Thanks must be given to PETCO for their vision and generosity in providing core support. We believe that alongside strategic founding partner Plastics|SA, PETCO has planted the seed that SST will carefully nurture through its early stages and then grow the hub so that communications will become the unifying essence of the Network.’ n

PETCO (the PET Plastic Recycling Company NPC) works to fulfil the South African PET industry’s role of Extended Producer Responsibility (EPR). EPR promotes the integration of environmental costs associated with PET products throughout their life cycles into the market costs of the products, and shifts responsibility for the used packaging from government to private industry. www.petco.co.za Sustainable Seas Trust (SST) is a registered Charity, Public Benefit Organization, and Not for Profit Organization. The Trust is registered and administered by Nedgroup Trust and operates exclusively for charitable, socioeconomic, scientific, educational and philanthropic purposes.

SST is dedicated to harnessing the power of people everywhere to promote conservation, sustainability and habitat restoration. SST raises environmental awareness to help preserve coastal areas from over-harvesting and pollution. www.sst.org.za/sst/the-organisation Plastics|SA and Packaging SA are signatories of the Declaration of the Global Plastics Associations for Solutions on Marine Litter, which was signed in 2011 and is an International Plastics Industry effort to combat marine litter by up to 90%. Since March 2011, to consolidate and leverage these efforts and to generate additional innovative solutions, 65 plastics associations from 34 countries have signed the declaration. ww.plasticsinfo.co.za/

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MINING

Mining for tomorrow South Africa’s mines are aging and travel times to the face sometimes reach an hour or more. Consequently, with increasing depth and distance, actual drill time at the workface has contracted, accounting for increased health and safety challenges, shrinking production and contributing to burgeoning costs. The Chamber of Mines South Africa explains how modernising our mines can help.

A snapshot of the South African mining sector reveals a labour-intensive industry using physicallydemanding manual drilling methods – with blasting and cleaning on a stop-start basis, predominantly in narrow reef, hard-rock – in working conditions generally characterised by abrasive rock, steep gradients and seismicity. And, with increasing depth, the virgin rock temperature continues to rise. On the Witwatersrand Basin, host to the world’s largest gold resource, at depths of 2 000m below the surface, the virgin rock temperature can be as high as 40ºC. On the Bushveld Complex, host to 80% of the world’s platinum reserves, these temperatures are even higher, reaching 70ºC. Modernising our mines will help to improve safety and health, facilitating the quest for zero harm. It will also contribute to increased skills development, employment, exports and revenue; not to mention the knock-on effect on local communities. Ultimately, without a shift in mining methodology, the industry will fail to mine South Africa’s deep-level complex orebodies profitably. This could result in the sterilisation of resources, accelerated and premature mine closures and job losses. Research suggests 200 000 job losses by 2025 could affect two million people indirectly.

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What does modernisation mean?

Modernisation is not simply mechanisation and/or gradual implementation of new technology. It is not the replacement of people with machines. It is not a euphemism for job losses. Rather, it is a process of transition and transformation of the mining industry of yesteryear and today to that of tomorrow.

Modernising the mining industry involves: • Mining South Africa’s mineral resources in the safest, most efficient, cost-effective and sustainable manner possible.

• Recognising that people are at the heart of the industry and focusing on improving skills, health, quality of life, and employees’ fulfilment.

• Conservation of natural resources, preservation and restoration of the environment.

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Modernising our mines will help to improve safety and health, facilitating the quest for zero harm.”

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MINING

• Contributing to the development of local and laboursending communities.

• Recognising that metals and minerals are valuable, useful and necessary.

• Transformation and growth as key imperatives of the mining industry and nation.

Research and development In part, modernisation will be driven by technological innovation that needs to be driven by research and development. However, to be successful, a holistic systems and people-centric approach must be adopted.

All elements of mining – including reporting structures, skills development, change management, stakeholder engagement, community development and environmental management – need to be modernised.

What has been done?

While a number of individual products have been developed by private companies, mining companies and manufacturers, an integrated suite of locally-manufactured products with real-time monitoring and control is needed.

The industry has set a milestone for the implementation of a cyclical drill and blast suite of equipment that mechanises all activities in the stoping and development cycle, including remotely operated equipment. In addition to this milestone, other areas have also been identified as critical to the development of research and development.

Work done to date indicates that modernisation significantly extends mine life, preserves mining employment, improves safety and health, and allows mining of lower-grade orebodies and deeper resources.

This also creates an environment conducive to 24/7 operations until 2045 and beyond in the gold sector, higher skills utilisation and job preservation.

With new equipment, which allows the conventional drill, blast and clean cycle of working, work can be done 24/7 by miners skilled in the use of remotely-controlled equipment from safe, healthy sites.

The chamber’s contribution A new senior executive position has been created to champion this modernisation throughout the organisation.

In addition, an innovation team consisting of senior company representatives has been established to steer the Chamber’s efforts. The Chamber conducted extensive research into mine modernisation and developed a strategic framework for modernisation to indicate how the mining sector could achieve its objectives while contributing to National Development Plan objectives of higher growth, employment, exports and government revenue.

The three key enablers of modernisation are identified as: • Research and development – Massive investment is required, with initial focus on narrow-reef, hard-rock mining equipment and systems. Incentives should

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Ultimately, without a shift in mining methodology, the industry will fail to mine South Africa’s deep-level complex orebodies profitably.”

be provided for companies to invest in research and development, and a world-class collaborative R&D hub is in the process of being created. This is being done with the collaboration of industry (through the Chamber of Mines), various key government departments, universities and research institutions.

• Mining manufacture – The development of a mining manufacturing development programme to increase levels of local manufacture of mining equipment, industrialisation using local labour, and a reduced cost of ownership for mines and optimal mining production.

• Sustainability issues – A transition road map for modernisation to include sustainability impact assessments of future mining scenarios and accelerated skills development of employees in local communities.

The Chamber has identified the products, technologies, people and infrastructure required to mechanise the stoping and development cycle with remotely-operated equipment by 2020. Similar requirements have been developed for a 24/7 mechanised mining system that operates without explosives by 2025. Additionally, systems to modernise current conventional mining operations – to make them safer, healthier, more productive and sustainable – have also been identified.

An exciting new area of work that has been initiated is digitisation, where appropriate technologies and systems can be developed to keep abreast with international developments in the Internet of Things as applicable in the mining industry.

During the Mining Phakisa, detailed plans were developed to accelerate progress on all the building blocks for modernising mining through a partnership between the public and private sector. The Chamber will participate actively in the implementation of these plans.

Mining companies have spent over R500 million annually over the past couple of years on innovation and the Chamber has advocated that substantive investments be made by government to accelerate these efforts.

This campaign culminated in an allocation in the national budget for research and development in the mining industry (in the extractive phase of the value chain), at levels unprecedented in the past.

None of this work will be sustainable or meaningful without due consideration of the human factors associated with modernisation in mining, and thus an inclusive process of identifying issues and providing win-win solutions for all stakeholders has been initiated through a dedicated programme in this area. For more information, visit www.chamberofmines.org.za. n

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ADVERTORIAL: OCCUPATIONAL HEALTH & SAFETY

The importance of preventing occupational diseases and injuries

By Dr Sophia Kisting, executive director, National Institute for Occupational Health (NIOH)

While many South African workplaces adhere to national and international OEHS best practice, many do not. It is imperative that there is a mind-set change towards greater prevention and an urgent need to reduce the current heavy burden of work-related diseases and deaths.

Workers in South Africa are exposed to many occupational and environmental health and safety (OEHS) hazards that could result in adverse health outcomes, including Tuberculosis and HIV, occupational respiratory diseases, skin diseases, reproductive health problems and hearing loss. Workplaces can also cause diseases such as diabetes, hypertension, work-related stress and cancer, or can make these better or worse.

Inadequate OEHS teaching and training, and a lack of universal access to occupational health services, impact negatively on health outcomes. Occupational and nonoccupational diseases can be prevented or managed better through workplace programmes that support a healthy, safe and productive workforce.

The Global Development Agenda (GDA) The Sustainable Development Goals (SDGs), adopted by the United Nations in September 2015, include decent work, health and gender equity. The SDGs are universally applicable to balance different dimensions of sustainable development. They apply to all countries and are intended to promote human rights, greater equity, peaceful and inclusive societies, create decent and sustainable jobs, and address the enormous environmental challenges of which climate change constitutes a significant part.

The SDGs provide us with an opportunity to aspire more determinedly to achieve decent work and therefore integrate OEHS into our development agenda. The appropriate control of workplace hazards will not only benefit workers’ health but will also protect the environment, communities and our children.

Gender equity In 2016, the NIOH Gender@Work programme was launched with support from government departments, trade unions, employer organisations, and international agencies to mainstream gender concerns in OEHS in the workplace. The NIOH Gender Committee coordinated a participatory gender audit (PGA) between 2015 and 2016, which is globally considered as a powerful tool for organisational transformation and helping to identify organisational strengths and challenges towards gender

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integration. PGA’s role is particularly important in the context of the GDA and South Africa’s commitment to delivering the KPIs of the 17 SDGs.

Technology strengthens workplace OEHS Advances in technology significantly contributes to improved OEHS globally. These include developments in engineering devices, personal protective equipment, and more efficient methods of managing diseases and injuries.

To improve OEHS systems and utilise technology more optimally, the NIOH – in collaboration with the University of British Columbia – implemented the Occupational Health and Safety Information System (OHASIS). Where implemented, the system shows significant positive impacts on the practice of OEHS. It is our conviction that OHASIS will greatly enhance OEHS practice in the public and private sectors in South Africa and beyond, and will assist with more effective compliance with OEHS legislation.

The SDGs provide incentives for implementing genderinclusive programmes in OEHS within all industrial sectors and the informal economy, and facilitate sustainable economic growth and decent work for all. SDG eight calls for the promotion of inclusive and sustainable economic growth, full and productive employment and decent work.

This enables South Africa to find inclusive processes to help address, among others, the vexing challenge of our heavy burden of disease as countries must report on the 17 goals through various KPIs. The NIOH and its multidisciplinary teams are committed to working with as many business role-players as possible for healthier, safer and more sustainable workplaces. n

National Institute for Occupational Health – NIOH W www.nioh.ac.za

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OIL & GAS

China makes inroads into African energy China is quickly and steadily shifting the balance of power in Africa, playing an especially pivotal role in the rapid development of much-needed infrastructure.

The Belt and Road initiative will be a catalyst for further advances by Chinese builders and lenders.

For most African countries, Chinese investment cannot come quickly enough. The continent’s power sector alone requires $450 billion through 2030, with about 600 million people in sub-Saharan Africa currently lacking access to electricity. The oil and gas industry is estimated to need over $2 trillion in investment between 2013 and 2035.

China has stepped up to fill those gaps. Africa, with its abundant natural resources, wealth of infrastructure opportunities and convenient location, is a perfect match for China’s global infrastructure plan, ‘One Belt, One Road,’ which sets out to create new land and sea trade routes to ensure energy supplies, increase foreign trade, and promote Chinese enterprise and products.

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Power projects built by Chinese firms accounted for 30% of new capacity in sub-Saharan Africa from 2010 to 2015.”

Building power projects Power projects built by Chinese firms accounted for 30% of new capacity in sub-Saharan Africa from 2010 to 2015. Similarly, in power projects from 2010 to 2020, Chinese companies have built and are building an additional 17GW of generation capacity, according to a report by the IEA. And, in July, South Africa’s state power

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OIL & GAS

utility, Eskom, announced it was taking a $1.5 billion loan from the China Development Bank to finance the Medupi coal power plant.

Chinese involvement in the oil and gas upstream has also skyrocketed. Up to 2000, China’s three state owned petroleum companies were represented in just one African nation, Sudan, where, according to the Institute of Developing Economies Japan External Trade Organization, the state-owned China National Petroleum Corporation (CNPC) was a major stakeholder in the Greater Nile Oil Project Company.

In the 2000s China set out to diversify its natural resources imports and ensure energy security amid rapid growth. By 2014, Sinopec alone was active in 16 African countries (Algeria, Angola, Cameroon, Central African Republic, Chad, Egypt, Gabon, Ghana, Kenya, Libya, Mauritania, Niger, Nigeria, Sudan, South Sudan and Tunisia). CNPC is currently active in Tunisia, Algeria, Libya, Niger, Chad, Nigeria, Sudan, and South Sudan; and China National Offshore Oil Corporation (CNOOC) has interests in Gabon, Uganda, Nigeria, Algeria, and Republic of the Congo.

According to the Council on Foreign Relations, China receives 22% of its oil supply from Africa at 1.4 million barrels per day. In June 2016, Nigeria, a key provider of Chinese oil, signed $80 billion in provisional contracts with Chinese companies to upgrade its oil and gas infrastructure. Sinopec, already active in in Nigeria’s upstream, was one of 38 Chinese companies involved in the deal.

“

Many African countries find loans and other funding mechanisms are more attractive from China than from its Western counterparts, largely because China offers money on a ‘no strings’ approach.”

A top investor in Africa China is quickly emerging as a top investor throughout Africa, with foreign direct investment (FDI) from China growing by 166.7% from 2014 to 2015 compared to a 29.5% growth in investment by the US, according to EY. And, according to a report by the Brookings Institute, in recent years China has made up one-sixth of overall foreign investment in Africa. China became Africa’s largest trading partner in 2009, taking the top spot from the US, and

by 2015 Chinese exports to Africa totalled $103 billion, compared to US exports of $27 billion, according to data from the China Africa Research Initiative at Johns Hopkins University.

A land of opportunity In fact, David Pilling, the Financial Times’ Africa editor, argues in an article that Chinese investment ‘is shifting the commercial and geopolitical axis of an entire continent that many Western governments had all but given up on. While Europeans and Americans view Africa as a troubling source of instability, migration and terrorism – and, of course, precious minerals – China sees opportunity. Africa has oil, copper, cobalt and iron ore. It has markets for Chinese manufacturers and construction companies.’

According to a Pew study, many African countries find loans and other funding mechanisms are more attractive from China than from its Western counterparts, largely because China offers money on a ‘no strings’ approach.

In contrast, Western countries tend to have stipulations, often related to governance or human rights policies.

Overall, the Pew study found that 70% of Africans have a favourable view of Chinese investment.

Funding for Africa Additionally, China is more likely to lend to unstable countries such as DR Congo, South Sudan and the Central African Republic, which struggle to gain funding from other sources.

Some question China’s involvement in Africa as another form of exploitation or even ‘new colonialism’, in which China loans copious amounts of money to African governments so that its firms can win contracts. The Brookings study found that by also providing the financing for projects, Chinese construction firms have gained a firm foothold on the continent and are crowding out African construction companies.

But there is no question that Africa severely lacks infrastructure and that this is severely limiting Africa’s economic capacity. And this is just where China has been excelling – financing and building infrastructure.

‘From Africa’s perspective, although China presents risk it brings tangible benefits in finance and engineers,’ said Pilling in the same article. ‘More importantly, it brings choice. That is welcome for African governments that have, for decades, been locked in often unproductive relationships with foreign donors.’ n

Africa Oil & Power is the continent’s premier platform for energy investment and policy. With a heralded series of energy events, AOP brings together an elite class of ministers and senior level government officials and top executives of private sector companies spanning the energy value chain, including upstream, downstream, engineering, construction, services, consulting, power generation, legal and finance. AOP is the benchmark for top-tier networking and high-level discussion on a multitude of issues concerning the African energy landscape. For more information, visit http://africaoilandpower.com.

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PURCHASING & PROCUREMENT

Tender process for the tough-minded Speaking of transparency in the same sentence as tendering to government; surely not? Chartered accountant [CA(SA)] Julius Mojapelo, senior executive for the public sector at the South African Institute of Chartered Accountants (SAICA) sets the record straight.

There are many SMMEs doing honest deals with government through a legal, transparent process of procurement and tendering. But the truth is that by far the majority of SMMEs steer well clear of government even though BBBEE and tendering rules favour them.

As important as it is for tender processes to be above board for SMMEs, who find these processes onerous enough, they generally don’t look for business from government at any level for a much more critical (to them) reason – on average, they don’t get paid on time by public institutions. And, as a result, more than 80% of SMMEs don’t do business with government at any level.

This was among the findings of the 2016 SMME Insights Survey conducted by SAICA, which is the most recent research on the topic by the institution. The average turnover of these enterprises is R10.9 million, with a third employing between six and 49 people.

According to the National Development Plan, these companies are the country’s only hope of reducing unemployment and poverty and of boosting our failing levels of gross domestic product.

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Among the survey’s critical conclusions is that SMMEs (and by extension our country) could flourish if the tender process was simplified and made more transparent, and if government and big business paid their accounts on or before 30 days.

Public finance management capacity building With the low uptake by SMMEs tendering for government contracts and the often-bemoaned slow payment, it is heartening to learn that SAICA is working with government to improve public finance management capacity.

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The majority of SMMEs steer well clear of government even though BBBEE and tendering rules favour them.”

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There is no chicken and egg situation here. If government pays on time SMMEs will engage in droves.”

But what’s being done? ‘Providing public finance management capacity and building support is a priority at SAICA,’ explains Mojapelo. ‘This involves collaboration with public sector institutions to help them improve financial management systems and processes to ensure sustainable service delivery.’ Paying SMMEs on time would be one of the outcomes.

‘SAICA is also educating SMMEs and its members who interact with SMMEs about the process of doing business with government. This makes it easier for SMMEs to tender for contracts.’

But with slow payment by government a concern for many SMMEs, is Mojapelo optimistic about a turnaround?

‘I see signs of government’s commitment to turning the situation around through recent legislation and measures,’ he maintains. ‘Among them, Treasury Regulation 8.2.3 states that unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgement.’

Help at hand for SMMEs He adds: ‘These measures include establishing a dedicated call centre within National Treasury to assist institutions and affected suppliers in resolving nonpayment of suppliers/creditors appointed through the supply chain management process.’

National Treasury will provide quarterly reports to parliament regarding the non-payment of creditors within 30 days, and make the reports public. While this is a step in the right direction, SMMEs remain unconvinced about doing business with government. The proof of the pudding it seems will only emerge in the eating.

Mojapelo sympathises with the plight of SMMEs that are struggling to get payment from government.

‘The Small Enterprise Development Agency payment assistance hotline is a very important platform that SMMEs can use to facilitate payment of long outstanding payments from public sector institutions.’

Current legislation protects SMMEs in instances of slow payment. ‘Should entities fail to comply with the 30-day payment terms, this will result in non-compliance with the Public Finance Management Act and Treasury Regulations.’

The ball firmly in government’s court During a budget speech earlier this year, Lindiwe Zulu, Minister of Small Business Development, said: ‘In January the National Treasury gazetted the revised Preferential Procurement Regulations that encourages government

and its entities to procure at least 30% of goods and services from SMMEs and cooperatives.’ But, as the Minister observed, ‘the contribution of SMMEs to the South African economy is far below its potential’.

According to the Quarterly Financial Statistics Report, the private sector earned R2.3 trillion in the last quarter of 2016. Large businesses contributed 60% with the balance from small and medium businesses.

‘We need to do better and match the global average that shows small businesses share higher levels of participation in various economies. This is possible if we heed the President’s directive to set aside 30% of government procurement budget of around R600 billion towards SMMEs and cooperatives.’

SMMEs might be tempted to reply to Minister Zulu

“

More than 80% of SMMEs don’t do business with government at any level.”

that the contribution of government to encourage SMME involvement by paying its bills on time is also far below its potential. The ball, it seems, is firmly in government’s court. There is no chicken and egg situation here. If government pays on time SMMEs will engage in droves.

The continued growth of SMMEs rests on government’s commitment to delivering on tender and payment policy. Everyone’s a winner when we create jobs through transparent tenders, fairly awarded, and where work is paid on time.

SMMEs that want to report slow payment by government can call 0860 766 3729. For more information, visit www.saica.co.za; www.seda-smme.co.za. n

Julius Mojapelo, senior executive for the public sector at the South African Institute of Chartered Accountants (SAICA).

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PROPERTY & REAL ESTATE

Wine overtakes classic cars on Luxury Investment Index Wine has topped the Knight Frank Luxury Investment Index (KFLII), knocking classic cars off pole position into second spot. This follows strong annual growth in key regions around the world that form the backbone of most investment cellars.

Data from the latest edition of The Wealth Report has revealed the value of The Knight Frank Fine Wine Icons Index, rose 24% in 2016, dwarfing its more modest 5% growth the previous year. Classic cars increased in value by 9%, falling from 17% growth the previous year.

Andrew Shirley, editor of The Wealth Report, comments: ‘Last year’s stellar wine performance sets it apart from the other investments in our index. Several other asset classes also produced some record-breakers, even though their overall performance was relatively muted. The sparkiest was the sale of the Oppenheimer Blue, a vivid blue 14.62-carat diamond sold by Christie’s Geneva for the equivalent of almost US$51m, making it the most expensive jewel to ever sell at auction.’

Nick Martin, founder and executive director at Wine Owners – which compiles the Knight Frank Fine Wine Icons Index – explains why investment-grade wine performed so strongly last year: ‘In 2015 we saw growth of around 8% for the whole of the Bordeaux region off the back of steep declines between 2012 and 14 following the burst of the Chinese-induced Bordeaux bubble in late 2011. However, in 2016 the top Bordeaux blue chips drove the entire market, growing 9% to the end of June.

Brexit turbo-charged the market with the devaluation of sterling, feeding more positive sentiment into a market

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had already been gathering significant momentum.

The first growth rose a further 18% between June and November 2016, resulting in an annualised performance of over 30%.’

The strong performance of wine could not prevent the KFLII, which tracks the performance of 10 luxury investment sectors, from posting annual growth of just 2% – its weakest performance since experiencing a 2% drop in 2009.

Some examples, in addition to the Oppenheimer Blue, of record-breaking sales in 2016 include: • A Ferrari 1957 335 Sport became the most expensive car to go under the hammer ever, in Euro terms at least, when it was sold by Artcurial in Paris for 32m.

• A rare stainless steel 1941 Patek Philippe ref 1518 perpetual calendar chronograph with moon phases broke the record for the most expensive wristwatch sold at auction when it went under the hammer with Phillips Geneva for US$11m.

• Bonhams London sold a 14.13-carat ring for £1.4m in December against a high estimate of £800,000.

• A 1962 Ferrari 250 GTO sold privately is thought to have exceeded the highest sum ever paid at auction last year (US$38m for another 250 GTO sold by Bonhams) for a classic car and was possibly the biggest deal ever struck. n

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ADVERTORIAL: VMQ Property services

Property consultants management services VMQ Property Services alleviates its clients’ burdens through turnkey project management services and the diverse skills of its project managers.

VMQ Property Services adds value throughout the life cycle of property development from strategy formulation and feasibility modelling to construction.

Post construction, VMQ also consults in asset and facilities management.

The company consults in the following areas: • Project management – in construction and as a programme manager to coordinate the output of various property disciplines.

• Strategic consulting in facilities management – due diligence audits of properties, formulating maintenance plans, and skills analysis audits.

• Property development facilitators and assessors in the social housing market.

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SABI Vol 6 Issue.indd 76

2017/08/31 9:36 AM

RETAIL

South African shoppers influenced by clicks and bricks New research by Nielsen reveals that thinking in terms of bricks versus clicks is outdated and that bricks-and-clicks is the current and future retail reality, especially in emerging markets including South Africa.

Nielsen’s new global research, What’s in-store for online grocery shopping – omni-channel strategies to reach crossover shoppers, conducted in 63 countries, assess consumer behaviour and attitudes towards in-store and online shopping with an emphasis on groceries and fresh produce. It explores patterns across product categories and investigates the key influencers and barriers that affect the decisions of ‘trialists’ (purchased online in the past but not recently) and ‘considerers’ (currently don’t buy online but would consider buying) in adopting online retail models.

Nielsen South Africa head of retail services, Gareth Paterson, says: ‘We found that the most effective strategies to engage shoppers starts with an in-depth understanding of how shoppers make purchasing decisions, both online and in store while considering the blurring across both options, then offering touchpoints that are specific and relevant to their needs.’

When asked what products or services are currently purchased online, many South African respondents said travel (53%), event tickets (52%), books/music/stationery (45%), IT and mobile (40%), and fashion (38%), while items such as fresh groceries, packaged grocery food,

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medicines and pet food are mostly accessed in-store.

Travel and event tickets are also purchased online with greater frequency than offline, while books/music/ stationery, IT and mobile are purchased to the same extent on and offline, and fashion is still purchased with greater frequency in-store.

Influencing strategies For fresh produce (fruit, vegetables, meat and dairy), the most effective online activation strategy is offering a full money-back guarantee for products not meeting expectations. Other high-influence activation strategies include offering the same produce free with a subsequent purchase, freshness labels, and the ability to make special product requests to suit individual needs – such as green bananas, ripe tomatoes, lean cuts of meat.

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In line with global trends, the most important source of information used in purchasing decisions are traditional touchpoints.”

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RETAIL

‘For information sources used to aid purchase decisions in the fresh grocery category, visits to the physical store is top (56%) followed by word-of-mouth (41%), newspapers or magazines (32%), and websites containing coupons or discounts (30%). Our respondents cited online user reviews and blogs, or special interest websites at the bottom of the list,’ Paterson comments.

While online and offline switching behaviours suggest that most consumers buy fresh and packaged groceries, and medicine or health-care products in store, the use of online shopping options is growing, especially among tech-savvy Millennials.

Online hesitancy In South Africa, which has a 49% internet penetration, 51% of those sampled say they would go to a physical store to buy groceries and would not consider buying online, 40% are not buying online but would consider it, 6% have bought online but not recently, and 3% buy online regularly.

When asked if South African consumers had confidence that their personal information on a retailer’s website is secure, the majority (57%) said they did but 13% somewhat disagreed, and 7% strongly disagreed.

Another question dealt with problems of internet connectivity with 42% saying they felt this was a problem in South Africa.

To encourage online purchases of any consumable products, retailers need to address consumers’ concerns.

A full refund for product that doesn’t match consumers’ expectations is most influential among ‘trialists’ and ‘considerers’, but other strategies include same day product replacement, free delivery above a minimum spend, tracking progress of delivery online, and free delivery from Tuesday to Thursday every week.

Information nation

Online and offline continue to blur Overall, it’s clear that digital retailing gives consumers more ways to shop and greater access to products and services than ever before. Consumers are also embracing the freedom of shopping whenever and wherever they please, as growth in online sales outpaces bricks and mortar to capture a growing share of retail spend in many markets around the world.

While these measures show more sales going online; actual consumer behaviour is a little more complicated and the lines between online and offline channels continue to blur.

Considering this, Paterson comments: ‘Simply adapting to keep pace is no longer sufficient; to create maximum ROI in an omni-channel environment, winning brands and retailers must know their shoppers – their demands and how and what they’re buying online and in-store – and then leverage the specific touchpoints that will maximise their shopping experience.’ n

Gareth Paterson, Nielsen South Africa’s head of retail services

Photo credit: Nielsen South Africa

In line with global trends, the most important source of information used in purchasing decisions are traditional touchpoints. Visits to a physical store are helpful for all product categories, but they’re clearly the most influential source for fresh grocery products. For all categories, digital platforms and social media are more influential in purchasing decisions in developing markets than advanced ones, highlighting a greater importance for integrated omni-channel marketing strategies in developing markets.

Some disruptive trends that will continue to drive connected commerce growth include: • Business model innovation – New models are gaining traction and South Africa is no exception. While no single model is right for everyone, the challenge is to

determine how to take the best of the online and offline worlds and blend them in a way that deepens the shopper relationship and experience.

• Rising connectivity – Exponential growth will occur in emerging markets and South Africa, driven largely by the spread of mobile devices and increasing access to affordable data.

• Digital payment disruption – Mobile is helping to address one of the major challenges for online retailers: the largely unbanked population in much of the developing world – mobile money services is enabling new consumers to engage in e (electronic) and m (mobile) commerce for the first time, driving additional consumer spending.

• Rising economic prosperity and consumption-led growth – Growing consumer purchasing power and the rising middle class will be a growth engine for consumption, with young, digital natives being a powerful force for future consumption.

• Urban living – Up to 64% of South Africans live in urban centres, which have better digital and physical infrastructure necessary to facilitate connected commerce growth.

Nielsen Holdings plc is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with total audience measurement services across video, audio and text. The Buy segment offers consumer packaged goods manufacturers and retailers with the industry’s only global view of retail performance measurement. By integrating information from both segments and other data sources, Nielsen provides world-class measurement and analytics that help improve performance. For more information, visit www.nielsen.com.

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RISK MANAGEMENT & CONSULTING

Next generation liability risks Allianz Global Corporate & Specialty SE (AGCS) is working with Praedicat to better predict the key catastrophe liability risks of the future.

By combining Praedicat’s forward-looking predictive modelling approach with AGCS’ underwriting processes and extensive liability risk portfolio analysis, the companies aim to identify the next generation of catastrophe liability risks for business customers far earlier than under current methods.

Praedicat’s modelling engine uses machine learning technology to scan large volumes of data from peer-reviewed science publications and profile the likelihood that products or substances will generate litigation risks over their lifecycle.

AGCS and Praedicat aim to combine the best of both approaches in this new risk assessment methodology.

Using forward-looking data models in addition to historic loss data analysis and risk engineering assessments, AGCS liability underwriters globally will be able to better identify and assess future liability risks for industries or single companies. Praedicat’s data analytics tools will help to evaluate the risk of a potential mass litigation, stemming from the use of a chemical, product, or substance in niche or widespread industry applications.

‘Forward-looking models will transform insurance underwriting. Through this collaboration we hope to change the core role of underwriters, freeing them up from the daily paper grind and empowering them to be data scientists,’ explains Hartmut Mai, chief underwriting officer and board member, AGCS. ‘Emerging risks are challenging to quantify for an insurer. But now, AGCS underwriters can identify emerging liability catastrophe risks with increased confidence based on in-depth data.’

Identifying litigation risks When risk agents or named perils are identified, they are tracked over time as new data emerges and increasingly shapes scientific acceptance of the risk. Praedicat has further developed a database of industry and company exposures to the named perils.

‘With forward-looking models, machine learning, and algorithmic search, the insurance sector is in the midst of transformation,’ says Robert Reville, chief executive officer at Praedicat.

Research on emerging risks There is a large degree of liability stemming from emerging risk, although just how much is not effectively measured today. Bringing together scientific and risk management expertise, both companies work closely to get in front of emerging risks that could have an impact on industry segments, such as nanotechnology in the food and beverage industry.

‘AGCS will help businesses understand potential emerging liability risks and their impact on their company while providing innovative solutions,’ adds Michael Hohmann, global head of liability, AGCS. ‘We will use the Praedicat data and tools to help our clients achieve better product stewardship and to tailor their insurance program to their specific risk profiles.’ n

Allianz Global Corporate & Specialty (AGCS) is the Allianz Group’s dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty alternative risk transfer and corporate business. For more information, visit www.agcs.allianz.com.

Praedicat is a science-based data analytics company that offers a revolutionary new approach to emerging risk, working with (re)insurers and corporates to manage liability exposure and capture opportunity for better risk management and product stewardship. For more information, visit www.praedicat.com.

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ADVERTORIAL: Fleet Data Technologies

How can FDT help you?

The Fleet Data Technologies (FDT) Group’s solutions support the key requirements of fleet and asset managers who need to track performance and utilisation, reduce operating costs, and ensure safe operating practices.

The FDT Group’s end-to-end fleet management solutions, GPS tracking, sophisticated mapping, managed maintenance, fuel, insurance, tracking, and customised reporting tools provide the real-time, location-based data that our customers across South Africa and the region rely on to keep their businesses running smoothly every day.

FDT connects all your location-based and mobile information and presents it in a single online application.

We determine your optimum fleet size based on usage.

But we don’t stop there. We ask you to tell us about your goals and challenges. By applying design-led thinking to

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these insights we find areas for innovation that are deeply rooted in your desired business outcomes, such as: • Reducing fuel costs by monitoring and reporting idling time and driver behaviour.

• Reducing administration time and costs with regulatory compliance.

• Streamlining processes with automated reminders for servicing, registrations, and certificate of roadworthiness.

• Monitoring and limiting unauthorised or after-hours use of vehicles and assets.

• Simplifying integration with a robust application interface.

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ADVERTORIAL: Fleet Data Technologies

• Providing activity-based information to make daily operations easy to manage.

• Easily keeping track of non-powered assets.

• Safety and risk – Impactful driver safety and risk management tools and techniques.

• Fuel and maintenance procurement systems – cards and smart systems.

• Bulk fuel supply and wetstock management.

Incorporated in 2001, the FDT Group is 100% black owned and managed. As a passenger and transport management solutions provider, our ethos has everything to do with people. We come to work every day excited to work with smart, creative people and dynamic clients with whom we develop trusted relationships. We are proud that our location-based business intelligence solutions help our clients make smart business decisions even when they can’t be in the field near their operations or with their personnel.

FDT’s Intelligence Suite enables our clients to see the big picture when looking at the day-to-day operations of their business.

With approximately 1 000 owned vehicles and 16 000 vehicles under management, our real-time information, historic data, and robust reporting capabilities help clients see the whole picture, allowing them to make informed decisions about the health and welfare of their people, their operations, and their bottom lines.

Portfolio expansion Over the last decade, FDT has steadily been increasing its product portfolio to increase market share. A new addition to the FDT stable is car rental and chauffer driven services offered by Select Car and Van Rental.

Our approach is to provide any travel arrangements where the traveller has ease of access to our facilities, right-priced innovative solutions with constant, pertinent communication to make sure that the entire travel experience is comfortable but with all the commensurate attention to detail.

Within the group, FDT has a fleet of luxury coaches and takes great care in its service offering to communities.

Through our relationships with other multi-nationals, FDT provides adhoc rental and luxury chauffer driven services anywhere in South Africa. n

Fleet data Technologies cc Cnr White Hills Close and White Hills Boulevard Lonehille, Fourways T +27 011 465 9911

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SABI Vol 6 Issue.indd 81

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Science & Technology

Three steps towards customer experience enhancements

By Wynand Smit, CEO, Inovo

Data acquired in a contact centre environment can provide the insights you need to discover your customers’ preferences. This can then be used to drive a more personalised and positive experience for these customers.

Improved Customer Experience (CX) is top of mind for companies, with 90% saying that they know it’s essential. However, too few are converting that awareness into an active strategy. Fewer than 10% have a programme set up to improve CX, even though it’s possible to create one and see improvements within 12 months. If achieved, valued customers and audiences will know that engagement has been improved, which contributes towards the goal of enhanced customer loyalty.

The path to improving CX begins with an understanding of the customer journey. This journey has evolved in recent years from being largely a voice-driven interaction over the phone to interactions over multiple channels. The average company actively uses up to nine channels (voice, text, email, social media and chat being among the most common) in response to a major shift to digital options available. Customer preferences and expectations drive how your business should present what’s on offer, be it

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service or sales. Being able to interact with your company directly from their mobile device gives customers the expectation that their needs will be met, often instantly.

Know your data, know your customer In the contact centre environment, huge quantities of data can provide the insights you need to discover what your customers prefer: when, where and how. This data, once aggregated across all contact channels and business systems, can then be analysed and the insights used to help drive a more personalised and positive experience for customers, including improvements in processes to enhance service levels or to align with customer preferences, more relevant and targeted marketing campaigns, or even to help identify specific support problem areas. The applications are endless.

Processes, tactics and strategies must be aligned to the individual customer’s specific needs to increase loyalty and satisfaction.

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SABI Vol 6 Issue.indd 82

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Science & Technology

Seamless, invisible The customer journey must be monitored at every touch point and any inefficiencies addressed. Inefficiencies are what cause customer frustrations. Your customer doesn’t need to know the processes and actions behind what goes into fulfilling their request, they simply want seamless resolution. Dealing with those points of frustration will ensure that your processes flow.

If you’re not sure where to start, begin by listening to your customer. Listening is a means of obtaining enormous insights into the customer experiences you want to improve. You can do post-call, USSD or email surveys or obtain in-store feedback about specific employees, processes or interactions.

Owning CX The CX journey doesn’t just belong to those who are dealing with customers directly. The strategy must be communicated to and owned by everyone in your company. It’s a journey with vision, goals and actions that take time to implement, but ones that bear long-term fruit. Make sure that everyone understands how their role

Wynand Smit, CEO, Inovo

fits into the CX strategy and that each person is actively engaging with their responsibilities.

The tools and insights available to do this are accessible and manageable, it makes sense to keep your customers satisfied, loyal and engaged. n

With over 10 years’ operational and strategic experience in the South African contact centre industry, Smit’s understanding of technology and its application to business has benefitted multiple organisations across a variety of industries. As CEO of contact centre solutions provider, INOVO, he is passionate about using the contact centre as a platform to drive positive change in a business. For more information, visit www.inovo.co.za.

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SKILLS DEVELOPMENT & TRAINING

Workplace learning: the key to SA’s progress Learnerships produce competent and efficient employees. More South African employers should encourage workplace learning to boost the level of skills in the organisation.

While workplace learning should be fast-tracked to up-skill and develop staff to ensure employees remain knowledgeable and informed in key industries, research into workplace learning by auditing firm Deloitte indicates the opposite.

Of the 1 200 organisations surveyed for the Bersin

by Deloitte: A Quantum Leap Ahead For Learning Organisation Maturity, 74% of organisations said they choose to focus on traditional learning methods and not on empowering employees to acquire new skills through workplace learning. Only 38% of workers said they have opportunities for growth and learning at their place of work.

‘These figures are concerning. In South Africa where there are critical skills gaps in several key sectors, workplace learning is necessary. Organisations need to start realising that great value lies in empowering and upskilling employees through Learnerships. It’s the perfect way to develop employees and to ensure they are equipped to do the work employers need them to do,” explains Richard Rayne, CEO of iLearn.

A Learnership is a vocational and educational training programme that links structured learning and work experience to obtain a registered qualification.

It combines theory and workplace practice into a qualification registered by the National Qualifications Framework (NQF).

‘Empowering and developing employees through learning programmes is one way of moving our country forward through education. Employees have the opportunity to upskill themselves, organisations evolve in the process and are able to compete effectively, and it’s a cost-effective and highly-beneficial option,’ he notes.

‘Considering how skills development has become such an important aspect of the B-BBEE scorecard, companies can use Learnerships effectively, not just for

talent development and management, but also to boost their B-BBEE levels,’ Rayne points out. Investing in Learnerships also provides opportunities to capitalise on various reimbursements, grants and tax rebates. iLearn offers a hyper-personalised approach to learning that supports interactive learning. ‘We help companies identify skills gaps and create learning pathways that encourage continuous employee learning, which aids both career development and business growth.’

This year, iLearn launched the first MICT SETAapproved blended learning Learnership, which Rayne says innovatively merges the advantages of online learning with the tried-and-tested benefits of classroom learning.

‘The new Learnership will have learners engaging with the course content online and in their own time, as well as with other learners in a structured face-to-face learning environment, guided by expert facilitators,’ he concludes. n

iLearn is the leading corporate learning solutions company that provides both onsite instructor-led and online methodologies. iLearn offers an array of learning solutions including: Business Skills, Learnerships, IT Desktop Applications, IT Technical, Design & Media, Language Courses, Custom Course Development and Learner Management Systems. For more information, visit: www.ilearn.co.za.

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Photo credit: Tshwane South TVET College

Advertorial: Tshwane South TVET College

Supplying scarce skills and creating jobs Tshwane South TVET College aims to contribute to South Africa’s economic growth initiatives by equipping the country’s youth with scarce skills and by creating job opportunities.

Tshwane South TVET College (TSC) is a public technical and vocational education and training (TVET) college that was formed when three former technical colleges merged. In 2006 TSC gained a fourth campus.

The college’s current sites are its headquarters in Pretoria Central and its four affiliated campuses in Atteridgeville, Centurion, Odi and Pretoria West.

The college operates under the auspices of the Department of Higher Education and Training (DHET) in terms of the Continuing Education and Training Act (No.16 of 2006), as amended.

TSC’s mandate involves equipping South Africa’s young people with vocational and occupationally-directed skills at the intermediate level of the National Qualifications Framework (NQF). In executing this mandate, the college aims to contribute to the eradication of inequality, poverty and unemployment, as well as the economic growth initiatives of the country.

TSC forms partnerships with stakeholders in both the private and public sector to supply the economy with skilled graduates. The college relies on these stakeholders for placement of TSC students with industries for purposes of experiential training.

The courses offered at TVET colleges are externally and independently quality-assured.

Public TVET colleges offer a very wide range of courses and/or programmes that have been developed to respond to the scarce skills needed by employers. Like at other TVET colleges, courses at TSC vary in duration from a short course of a few hours to formal diploma courses of three

years. The costs of the courses also vary considerably but most important is the fact that DHET courses are subsidised by 80% of the delivery cost. The remaining 20% is paid by the student, and many full bursaries are available for those who meet the criteria. The colleges offer various types of courses across a number of industry fields, including engineering, business, commerce, services, information technology, and civil & building construction. n

Tshwane South TVET College T +27 012 401 5000 (Head Office) T +27 012 373 1200 (Atteridgeville) T +27 012 380 5000 (Pretoria West Campus) T +27 012 725 1800 (Odi Campus) T +27 012 660 8500/1 (Centurion Campus) E marketingadmin@tsc.edu.za W www.tsc.edu.za

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SUPPLY CHAIN & PROCUREMENT

Improving growth in uncertain times Uncertainty and growth ambitions are a constant focus in many organisations.

As a result, reducing costs is the number one priority for 79% of procurement leaders. However, challenges with talent and poor adoption of digital technology still hinder progress.

Cost reduction and risk management top the list of procurement leaders’ business priorities in 2017, as per Deloitte’s annual Chief Procurement Officer (Cpo) Survey. The survey was carried out in 79 countries, including South Africa. Worldwide, 2016 was a period of political instability and economic uncertainty balanced with growth aspirations.

‘In a low-growth economic environment, companies need to implement cost-related strategies – drive cost reduction, cost avoidance, cost containment, and aggregation – to lower unit costs and defer costs or even cancel contracts,’ explains Schalk Human, acting chief procurement officer at National Treasury.

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“

CPOs who accelerate the adoption of predictive and cognitive analytics will enable end-to-end supply chain visibility and start using their data to drive decision making.”

‘A lack of skilled procurement talent adds to the pressure on organisations that need to cut costs without jeopardising quality and service levels, and that are under pressure to implement digital strategies. Clients are

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SUPPLY CHAIN & PROCUREMENT

increasingly recognising that procurement skills depend on their organisation’s operating model. This is a step towards pushing chief procurement officers to add more value to their organisations amid economic turmoil,’ adds Khutso Sekgota, associate director of integrated operations delivery at Deloitte.

Three quarters of CPOs believe that procurement’s role in delivering digital strategy will increase in the future, with over 65% saying that analytics will have the most influence. The impact of automation and robotics on their function will steadily increase from 50% today to 88% in five years’ time, and up to 93% by 2025. But 62% claim that there is still a large to moderate skills gap across analytical abilities.

Predictive and cognitive analytics The survey shows that companies are particularly interested in adopting predictive and cognitive analytics, for example leveraging cloud, analytics, and robotic software to drive decision-making processes. In total, 60% of CFOs agree that this digitised process should sustain cost reduction in parallel to a greater focus on risk.

‘Those CPOs who accelerate the adoption of predictive and cognitive analytics will enable end-to-end supply chain visibility and start using their data to drive decision making. Most CPOs are already thinking about how to augment their existing tools by leveraging the cloud,

“

The desired future state is one where there is cross-functional interaction and improved vendor relations.”

analytics and robotics. The challenge for them will be ensuring that their investments are well spent,’ Sekgota insists.

‘In the past, there were no expectations of the procurement function except for just-in-time contracting,’ notes Ventekatesen Giridhar, vice president of finance and commercial at AngloGold Ashanti. ‘We’re slowly moving away from contracting to value and optimisation.

The desired future state is one where there is crossfunctional interaction and improved vendor relations.

Appreciation at an executive level is paramount to the success of the procurement function.’

In total, 75% of CPOs say that they have executive support, but most CPOs also believe that they can improve their effectiveness of business partnering. Most rate their current effectiveness of business partnering at less than 70%, and are targeting future effectiveness of more than 90%. Without executive support, the CPO role becomes less strategic and more operational.

Like other business leaders facing global economic and political risks, CPOs will continue to focus on cost and risk management in 2017 to support growth in an uncertain market. So far, this is proving successful, with 58% achieving better savings performance than last year.

However, challenges with talent and poor adoption of digital technology still hinder progress. n

Photo credit: Deloitte

Khutso Sekgota, Deloitte’s associate director of integrated operations delivery

Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. For more information, visit www2.deloitte.com/za/en.html.

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ADVERTORIAL: GAUTENG PARTNERSHIP FUND

Integrated, sustainable human settlement developments The Gauteng Partnership Fund (GPF) is both partner and custodian of integrated, sustainable mega human settlement developments in the Gauteng City Region.

Our role is to bridge the gap between government and the private sector in terms of funding and implementation. In addition, we ensure turnkey planning and coordinated, efficient implementation of mega human settlement projects on strategic provincial land transferred to GPF. GPF’s mandate is to serve as the funding and implementing agent for integrated, sustainable human settlement developments in the Gauteng City Region and custodian of strategic provincial land transferred to GPF for effective immovable asset management and a coordinated, efficient implementation of mega human settlement projects.

GPF’s functions include: Fundraising and investment facilitation We use public sector funding to leverage additional funding and facilitate capital flows into integrated,

sustainable human settlements through the formation of strategic partnerships with local and international donors, development finance institutions and private sector partners.

Project preparation and funding packaging We assess project readiness and coordinate and facilitate the process to close the project readiness gaps in collaboration with relevant stakeholders. In addition, we develop bankable feasibility studies and facilitate funding and investment in human settlement projects.

Project Financing We facilitate equitable risk sharing and project financing models.

Project implementation, coordination and oversight We project manage, monitor and evaluate the development of mega projects by developers and contractors.

Photo credit: Gauteng Partnership Fund

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ADVERTORIAL: GAUTENG PARTNERSHIP FUND

Custodianship of strategic provincial land transferred to GPF We maintain, secure, develop and leverage the value of the land/property to unlock funding for development. The intent is to enhance GPF’s balance sheet for sourcing additional funding for all elements/sectors that comprise integrated, sustainable human settlement developments.

Vision and mission Our vision is to be Gauteng’s leading funding and implementing partner for delivering integrated, sustainable human settlements.

Our mission is to: • Leverage additional direct financial resources to deliver integrated, sustainable human settlements in Gauteng • Package mega human settlements to secure optimal capital market investments • Establish and manage strategic funding partnerships in respect of integrated, sustainable human settlements • Provide GPF’s funding partners with a sound return on investment • Ensure proactive, efficient and effective implementation of mega human settlement projects by private sector developers and contractors • Effectively unlock bulk services’ funding and mega human settlements projects development.

of committed housing delivery targets; and most importantly, • The millions of people whose lives are changed positively by the development of high-quality human settlement developments and spatial transformation across the Gauteng City Region.

Our values GPF has a values-driven leadership approach towards crafting a high-performance culture based on professionalism and excellence. Embedded in this culture are our core values, which are teamwork, innovation, integrity, people, and being proactive.

2020 and beyond The GPF’s strategic goals moving forward are to: • Raise additional capital to deliver integrated, sustainable human settlements across the Gauteng City Region • Implement mega human settlement projects efficiently and effectively • GPF is the custodian, that effectively and economically manages the life cycle of strategic land assets • Govern and manage the GPF as an organisation effectively and efficiently. n

Our value proposition In support of the spatial transformation of the GCR to develop integrated, sustainable human settlements by leveraging strategic partnerships, providing innovative funding solutions, facilitating effective project implementation, and developing and managing strategic land and property designated to GPF as custodian.

The GPF provides unique value to our strategic partners and beneficiaries including: • Developers and contractors – by providing structured and innovative funding solutions and effective project implementation and strategic land assets management • Our shareholder, the Gauteng Department of Human Settlement (GDHS) – by ensuring the achievement

Gauteng Partnership Fund 82 Grayston Drive, Sandton, 2196 T +27 011 685 6600 F +27 011 685 6696 E info@gpf.org.za W www.gpf.org.za

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TOURISM

Growing loyalty and revenue for Cape tourism Being held at Spier in Stellenbosch on September 20, The Business of Food and Wine Tourism Conference focuses on best practice and how to improve customer experience. An important feature of the forum is the various ways in which wine and food impact customer loyalty.

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Photo credit: World Travel and Tourism Council

The World Travel and Tourism Council (WTTC) has calculated that last year the direct contribution of the travel and tourism sector to the South African economy was worth R127.9 billion, accounting for 3% of the country’s GDP. Commenting on the WTTC findings presented in its recent 2017 Economic Impact Report, Margi Biggs, convenor of the upcoming The Business of Food and Wine Tourism Conference, says: ‘The good news is that the council has projected the sector’s contribution to domestic GDP will rise by 2.7% in 2017, a very welcome increase given the subdued state of our local economy’.

A seasoned travel and tourism specialist, Biggs contends that travel and tourism can contribute still further to national GDP, ‘provided the industry takes note of new trends in consumer spending, behaviour and priorities to make our food and tourism offerings more compelling and more competitive while upping the standard of our execution and service delivery’.

She adds: ‘If we get it right, the impact will be substantial. It will help to build skills, create economic opportunities and reduce unemployment, generating greater prosperity for more South Africans. We have all the right ingredients: beautiful locations, a growing reputation for world-class food and wines, and friendly and welcoming hospitality staff. We just have to finesse what we are doing with the technology and research we now have at our disposal while applying new thinking to marketing and problem-solving.’

She says the annual conference, now in its second year, is presented by a selection of international and local tourism specialists and focuses on best practice and how to improve the customer experience. ‘There is a growing view internationally that customer experience will drive more loyalty than complicated point-based programmes and schemes. We need to take note.’

Among this year’s keynote speakers is CEO of SA Tourism, Sisa Ntshona. His address explores how the food and wine experience can promote South Africa’s competitive advantage as a tourist destination. Included in the line-up of international speakers are Don Shindle, an expert in customer service and GM of the Westin Verasa Napa in California’s renowned wine tourism epicentre;

and world-renowned TV personality, Andrea Robinson, one of only 23 female master sommeliers in the world.

Dr Robin Back, a South African-born, US-based academic who conducts wine tourism research in both South Africa and the US, is looking specifically at the impact on loyalty of cellar door visits. The programme will also cover topics that include virtual reality, attracting new markets, and PR trouble shooting. For more information, visit www.wineandfood.co.za. n

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TOURISM

Photo credit: Pepperclub Hotel & Spa

Head chef, Scott Hendrie, with Zoliwe Thame, Kwanele Kawe and Victoria Jada.

Inspiring change with 67 days of training Using Mandela Day as an opportunity to inspire change, the Pepperclub Hotel & Spa in Cape Town tailor-made three long-term employment opportunities for unskilled personnel at the hotel.

In July, the five-star luxury hotel, situated in the heart of the city, launched its Mandela Day Pepperclub Hotel & Spa Upskilling Programme, which benefits three candidates from the Fisantekraal Centre for Development – a non-profit centre for training and development for the unemployed in Durbanville.

As part of the programme, these candidates were afforded the opportunity to receive 67 days of on-thejob training at the hotel to guide them in launching their careers in the hospitality sector.

‘With unemployment at its highest level in years, and youth unemployment at 38.6%, we were inspired to do more this year, taking the Mandela Day initiative from 67 minutes to 67 days,’ says Josiah Montsho, general manager at Pepperclub Hotel & Spa.’ He explains that

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after the conclusion of the two-month training programme, these candidates will be offered permanent, full-time employment at the hotel in the departments in which they excel the most.

The candidates taking part in the inaugural training programme are Zoliwe Thame, Kwanele Kawe and Victoria Jada.

Zoliwe Thame (28), from Bloekombos in Kraaifontein, completed her training in job readiness and computer skills at the Fisantekraal Centre for Development and describes herself as a hard worker who can manage any challenge that comes her way. Her aim is to be promoted to supervisor level within the next five years.

Victoria Jada (21), from Durbanville, studied a job readiness and office basics course at Fisantekraal Centre

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TOURISM

Josiah Montsho, general manager at Pepperclub Hotel & Spa

Photo credit: Pepperclub Hotel & Spa

for Development. Excited to learn as much as possible about the industry, she sees this opportunity as a new beginning and plans to work her way up to management level within a few years.

Kwanele Kawe (23), originally from the Eastern Cape, is looking forward to furthering her studies in marketing.

Kawe strives to be a positive influence in her community, and aims to use this opportunity to inspire others.

‘The two-month training programme is an initiative that the hotel will aim to implement every year on Mandela Day,’ says Montsho. ‘We feel that everyone deserves a fighting chance at building their career.’

‘Nelson Mandela once said that a fundamental concern for others in our individual and community lives would go a long way in making the world a better place and, together with the “teach a man to fish and you feed him for a lifetime” proverb in mind, we look forward to welcoming these three candidates into our hotel team and embarking on their new career path alongside them,’ concludes Montsho. n

Developed by Solomon Brothers Property Holdings, Pepperclub is a R400-million luxury hotel and spa situated in the heart of Cape Town.

The 20-storey hotel caters for discerning business and leisure travellers. For more information, visit www.pepperclub.co.za.

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