Progressive Leader Issue 14

Issue 14

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Reflecting on the way forward

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Publication of the ANC Progressive Business Forum

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Inside Progressive Leader

17 LETTERS 4 8

Letter from the President Letter from the Editor

NGC 2015 17 18 21 24 26 28 30

All about NGC October 2015 NGC Gala dinner PBF Exhibition at NGC Dr Rob Davies MP speaks at NGC breakfast

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Minister Jeff Radebe speaks at NGC breakfast Minister Lindiwe Zulu speaks at NGC breakfast Minister Ebrahim Patel speaks at NGC breakfast

FEATURES 32 36 41 46 51 67 73 85 89 93

The African Union’s role in Africa 50th anniversary of Brazil’s DPR Africa Attractiveness Survey results Infrastructure: Nelson Mandela Children’s Hospital

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Deloitte expert discusses tax 2016 Business Spotlight: Digital company BBD Fuel storage goes independent in Cape Town DSA Annual Awards Luncheon Focus on HIV/AIDs Durban 2022 XXII Commonwealth Games

PEOPLE 38 45

Political Profile: Minister of Public Enterprises,

Lynne Brown

101 103

Business Guru: Titus Ximba Business Guru: Fred Boltman

REGULARS 6 10

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Business Profile: Freedom Hadabe, Velani Unlimited

Message from the Treasurer General Join the PBF

12 15 55 77 96 104 107

Inside Luthuli House PBF Update PBF Globals PBF Networking Training in Johannesburg, Cape Town and Durban PBF Give Back: Art in the Right Spaces Entrepreneurs: People in Business

MESSAGE | PRESIDENT

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he ANC’s 4th National General Council (NGC), held in Johannesburg from 9-11 October 2015, gave a clear mandate to all ANC members to grow the movement and ensure that it continues to lead our people to prosperity. The NGC was marked by high levels of robust discussions and discipline. One of the ANC’s unique strengths is self-criticism and self-correction. Organisation building and renewal was a key factor in the NGC in our determination to rebuild the ANC and renew the character of our glorious movement.

The strengthening of ANC branches to enable them to perform their constitutional tasks was emphasised.

The ANC branch is the first point of contact with the broader community.

It must respond to the community’s needs and interests, and provide clear direction on the most important issues.

The NGC agreed to reinforce measures to inculcate within our cadreship the values of service, selflessness, integrity and discipline.

It reaffirmed our resolve to root out corruption and factionalism. It agreed that the Integrity Commission should be fully supported and resourced so that it can promote ethical behaviour within the ANC. To enhance the fight against corruption in government and the private sector, the NGC recommended that civil servants be periodically rotated from one employment site to another so as to circumvent growth of unprofessional and frequently corrupt relations with clients, service 4

A mandate to renew and rebuild providers and other persons.

Government should conduct lifestyle audits for all employees of the state and its related entities. The vetting process should be expedited for government employees and its related entities. The ANC challenges the private sector to subject itself to instruments of financial interest disclosure, vetting and lifestyle audits.

Economic transformation The NGC centred its discussions on measures to accelerate economic growth, create jobs, reduce poverty and improve livelihoods.

Given the distress in the mining sector as a result of low commodity prices, the ANC called on parties to exercise restraint and moderation in order to save jobs and to sustain the sector’s potential for future growth and development.

To promote energy security, the implementation of the energy mix is a priority, including coal, renewables, gas, nuclear and hydro. The recommendation by the Presidential Operation Phakisa programme to advance offshore oil and gas exploration should be implemented, but in in a manner that does not damage South Africa’s water and other environmental resources.

The NGC fully supported ongoing efforts by the National Economic Development and Labour Council (NEDLAC) constituencies to advance discussions on a minimum wage in the South African economy. The NGC noted that while we have made progress in some areas, there have

also been reversals and unintended consequences with regard to some of our black economic empowerment (BEE) interventions.

Processes need to be undertaken to iron out such problems and to develop more sophisticated mechanisms to achieve BEE-related economic transformation. The NGC called for a review of the Preferential Procurement Policy Framework Act to implement procedures that will be more effective in promoting black businesses.

The NGC also directed government to take all necessary steps to save South Africa’s steel production industry. Any assistance should be conditional on steel producers giving firm and specific undertakings on job retention, future investment commitments and future pricing, which will facilitate downstream competitiveness.

Social transformation The NGC directed that the 50/50 parity between men and women principle must be implemented in full in the ANC and in government. Preferential procurement rules need to be amended to make specific allocation to women-owned enterprises, including cooperatives.

The NGC also supported the need to review legislation to facilitate the removal of unused and inequitable water rights allocations. It is proposed that national government should be the custodian of water and water trading will be abolished. On human settlements, government should implement the Military Veterans Housing Programme and the Human Settlements and

MESSAGE | PRESIDENT

Gender Empowerment Programmes.

In addition, the Mining Towns Human Settlement Programme, including basic services, must be prioritised.

The NGC resolved that government’s sport funding model needs to be completely overhauled so that sports can meet its mandate. This requires the necessary levels of investment by all of government, including allocation from all provinces from the equitable share.

Legislature and governance The achievement of radical economic transformation depends on progress in building a capable developmental state. We have resolved to urgently and comprehensively address weaknesses that exist in a number of state agencies.

On land reform, progress in the “willing-buyer, willing-seller” policy has been addressed through the promulgation of the Property Valuation Act, which codifies the “just and equitable” principle as reflected in section 25 of the Constitution.

The NGC resolved that government should continue to strengthen the security of tenure for farm workers.

The Extension of Security of Tenure Amendment Bill will be an important step in this direction.

Land rights for people in communal areas should be formalised such that security of tenure is ensured and such land can have commercial value.

To ensure against the risk of people becoming landless in the process, a limitation clause in the title deed giving the State the right of first refusal must be secured.

The NGC resolved that there should be equitable access to land for women and that their interests must be protected.

The Expropriation Amendment Bill, currently before Parliament, is critical to ensure that the state is able to expropriate land in terms of the Constitution and should be expedited. We resolved that the Policy Conference should finalise the details

of the policy regarding the ownership of land by foreign nationals.

The NGC supports the current proposed ceilings on different forms of land ownership and use and this should find expression through the introduction of legislation.

International The NGC confirmed the support for the African Union’s Agenda 2063 Vision, recognising that it is a continuation of the African Renaissance philosophy.

The ANC disagrees with the doublestandard and selective actions of the International Criminal Court (ICC). In this regard, the NGC recommended that government reviews South Africa’s membership of the ICC. Our last important assignment as Chair of G77 + China will be to lead the Group to Paris for the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. This will be in defence of the Durban Platform for Enhanced Action, informed by the principle of common but differentiated responsibilities and capabilities.

The ANC carries the hopes of millions of South Africans. We remain focused on the responsibility of working to achieve a truly united, non-racial, non-sexist, democratic and prosperous society. This NGC has taken us a step further towards the implementation of that goal. <

Education, health, science and technology The ANC has called for a speedy review of the powers of the school governing bodies, the fast-tracking of the introduction of inspectors in schools, and for the building of more schools in villages and townships.

The NGC expressed support for the Annual National Assessments in schools and urged that challenges relating to its implementation be resolved.

The NGC welcomed the launch of Operation Phakisa on information and communication technologies in schools.

We need to confront the findings that black African children receive three-and-a-half hours of teaching per day as opposed to six-and-a-half hours in former whites-only schools.

This results in a three-year gap in their schooling career. We reiterate our call to all teachers to be at school, on time, in class, on task, teaching for at least seven hours a day.

Government was directed to fasttrack the implementation of the National Health Insurance and for funds to be made available for this

very purpose.

Jacob G Zuma President 5

MESSAGE | TREASURER GENERAL

Economic policy discussion I

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ran alongside the NGC, it was evident from the discussions that business was keen, and government is receptive to strengthening the partnership between government and the private sector in order to give effect and impetus to the National Development Plan (NDP).

The NDP is the country’s longterm development plan to eliminate poverty and reduce inequality by 2030.

It is worthy to note that government, business, labour and civil society reached consensus and are, in the main, in agreement regarding the objectives of this plan.

As we face the challenges of 2016, it is important to reiterate the ANC’s determination to bring about fundamental transformation that will create a more inclusive economy.

Long-term sustainability and stability require this from us, as do fiscal discipline, policy certainty and the strengthening of the link between policy formulation, budgeting and performance.

The decisions of the National General Council, and its endorsement of these principles as spelt out in the National Development Plan, confirm the ANC’s commitment to real and radical transformation in partnership with the business community in a fiscally sound manner; the outcome of which must ensure sufficient growth to bequeath a more inclusive South African economy for the generations to come. <

n this issue of Progressive Leader, we focus on the important policy decisions that were taken at the recent National General Conference (NGC) of the African National Conference; and in particular we focus on the economic engagement between the economic leadership of the ANC and the business community.

We have time and time again alluded to the importance of ensuring ongoing dialogue between the ANC as the primary economic policymaker of the country and the business community. This dialogue is crucial to ensure that government and business are in sync with regard to the main economic direction that the country has embarked upon.

During the PBF’s programme that

Dr Zweli Mkhize Treasurer General

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LETTER | EDITOR

Letter from the Editor A

NGC resolutions give further content to.

We call on progressive businesses to involve themselves in the national dialogue, as this dialogue directly impacts the economy in which they operate, the society from which they derive their clients and customers, and their bottom line. We believe that businessesâ&#x20AC;&#x2122; involvement in this dialogue should not just be a peripheral activity, but, in fact, a business imperative. For this, the PBF platform provides an effective vehicle to directly engage the countryâ&#x20AC;&#x2122;s leadership. We thus invite businesses to get involved with us in our endeavours to, through the partnership between business and government, steer our economy towards maximum growth. <

t the recent National General Council (NGC) of the African National Congress (ANC), the movement discussed a suite of policy proposals that will materially impact the South African economy. In this issue of Progressive Leader, we cover the outcomes of the deliberations extensively. We also cover the dialogue between the business community and the ANC that took place on the sidelines of the NGC. We believe that it is important for the readers of Progressive Leader to have insight into the direction that the ANC government is taking our country. We also believe that informed dialogue will lead to a mutual understanding of the solutions that will best serve the economy. South Africa needs a growing economy to ensure job creation and poverty alleviation. To ensure such a growing economy, South Africa requires a dynamic partnership between government, the private sector, labour and civil society.

This issue of Progressive Leader appears at the start of 2016. We trust that the issues raised in the coverage of the NGC serve to further stimulate the dialogue between government and business. The Progressive Business Forum (PBF), under whose auspices Progressive Leader is published, is dedicated to providing a platform for such dialogue.

In the course of the year, a number of opportunities will be created to advance the partnership for growth as is envisaged in the National Development Plan, which the

Enjoy the read.

Daryl Swanepoel

Editor Daryl Swanepoel

Managing editor Sharon Preston

Content editor Stephen McQueen

Senior designer: Art Direction Chief Albert Luthuli House 54 Sauer Street Johannesburg 2001

Justine Kerr

Junior designer Lucy Nkosi

Copy editing Loren Shirley-Carr and Lynne Yates

Photographer Kevin Josephs Progressive Leader is published by Ballyhoo Media. Opinions expressed in Progressive Leader are not necessarily those of Ballyhoo Media or the Progressive Business Forum. No responsibility can be accepted for errors, as all information is believed to be correct at the time of going to print.

Copyright subsists in all work in this magazine. Any reproduction or adaptation, in whole or in part, without written permission of the publishers is strictly prohibited and is an act of copyright infringement which may, in certain circumstances, constitute a criminal offence.

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Publisher Ballyhoo Media: a division of Ballyhoo Trading CK No: 2007/207595/23 14 Sixth Street, Parkhurst, Johannesburg, South Africa, 2193 PO Box 3125, Parklands, 2121 Tel: 086 111 4626 Fax: 086 670 6429 www.ballyhoomedia.co.za Printed by Creda Project manager Crosby Moruthane Sales executive Clinton Thomas, Siyabonga Mbonambi, Vhula Bhamuza Financial manager Anup Govan

0800 FENCING www.fng.co.za info@fenceandgate.co.za

PBF | ABOUT

Join the Progressive Business Forum

S

ince 1994, the ANC-led government has worked tirelessly to transform the South African economy, through fundamental macro-economic reforms, into a robust and vibrant economy characterised by good monetary and fiscal policy. The result has been a prolonged period of uninterrupted economic growth unprecedented in the history of the country.

The sound financial system created by the ANC-led government has also helped to protect South Africa from the worst of the global banking, housing and credit crisis, and in a period when others are experiencing or projecting recession, South Africa is less exposed.

Effective communication between government and the business community has been vital to the economic successes we have achieved in the past. This has traditionally been conducted at the formal level through entities such as Nedlac and with organised business groups.

In order to continue facilitating effective and vital communication between government and all sectors and sizes of business, the ANC would like to invite you to join our business group, the Progressive Business Forum (PBF), formed in 2006 with the primary objective of creating an ongoing dialogue between the ANC and the business community.

BENEFITS TO PARTICIPANTS

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Sustained economic growth and prosperity requires ongoing dialogue between the business community and the country’s policymakers. The PBF provides you and your business concerns with the opportunity to contribute to that dialogue by sharing your aspirations and concerns.

As a participant you will be part of an informal mechanism for frank and open discussion between the business community and ANC government leaders. As a member of the PBF, you will: • be invited to intimate and exclusive events organised specifically for the PBF that will be structured in a way that maximises honest two-way discussion; • enjoy an effective platform to get a clear understanding of government policy as it affects you and an opportunity for you to express your views and explain the impact of government policy on your business; • receive information bulletins and documents from our policy team; • have the opportunity to join ANC-led international trade missions and conferences, enabling you to promote your products and services internationally; • save money with specially negotiated discount schemes for PBF participants on various products and services, including discounted airfares; • be able to participate in our Growth Assist Programme, which has been designed to support you in growing your business by giving you access to complimentary training and consultations and exposing you to experts on a variety of relevant subjects such as business growth strategies, tax management, financial management and so forth; • be able to attend regular courses presented under the SMME training programme; and • have access to a PBF participants-only helpdesk that provides advice and guidance from experienced staff and consulting associates.

To join or contact the PBF, send your details to pbfhelpdesk@anc.org.za or go to www.anc.org.za/pbf/index.php for more information 10

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ANC | WHO’S WHO

Inside Luthuli House An introduction to the ANC leadership PRESIDENT JACOB ZUMA Jacob Zuma was born on 12 April 1942 in Inkandla, KwaZulu-Natal (KZN). He joined the African National Congress in 1959 and became an active member of Umkhonto We Sizwe in 1962, following the banning of the ANC in 1960. While on his way out of the country in 1963, he was arrested with a group of 45 recruits and sentenced to 10 years’ imprisonment on Robben Island. After his release, he helped mobilise internal resistance and was instrumental in the re-establishment of ANC underground structures in KZN between 1973 and 1975. He became a member of the ANC National Executive Committee in 1977 and served as Deputy Chief Representative of the ANC in Mozambique.

Following the unbanning of the ANC in February 1990, he was one of the first ANC leaders to return to South Africa, and was instrumental in organising the Groote Schuur Minute between the FW de Klerk regime and the ANC. In 1991, he was elected the Deputy Secretary General of the ANC, and in January 1994 he was nominated as the ANC candidate for the Premiership of KZN. In 1994, Zuma was appointed as Member of the Executive Committee of Economic Affairs and Tourism for the KZN provincial government. In December 1994, he was elected National Chairperson of the ANC and chairperson of the ANC in KZN, and re-elected in 1996.

Subsequently, he was elected Deputy President of the ANC at the National Conference in December 1997 and was appointed Executive Deputy President of South Africa in June 1999. Zuma was elected President of the ANC at the National Conference held in Polokwane in December 2007. He became President of the Republic of South Africa on 6 May 2009. He was re-elected to the position following the general election held in May 2014.

DEPUTY PRESIDENT CYRIL RAMAPHOSA Cyril Ramaphosa was born on 17 November 1952. He grew up in Soweto, but matriculated in 1971 at the Mphaphuli High School in Sibasa, Venda. In 1976, he was detained for a second time for six months. Subsequent to his release, he became a law clerk for a Johannesburg firm of attorneys and continued his studies through the University of South Africa, from where he obtained his B.Proc Degree in 1981. Elected Secretary General of the African National Congress in 1991, he is widely respected as a skilful negotiator and strategist, having played a leading role as an ANC negotiator at CODESA. He is also known for the role he played in building the National Union of Mineworkers into the biggest trade union in South Africa.

Following the first democratic elections in 1994, Ramaphosa became a Member of Parliament. He was elected Chairperson of the Constitutional Assembly on 24 May 1994 and played a central role in the drafting of the South African Constitution. Among other positions held, he was the Executive Chairman of Shanduka Group, a company he founded. Shanduka Group has investments in the resources sector, energy sector, real estate, banking, insurance and telecoms (SEACOM). He was also Chairman of The Bidvest Group Limited and MTN. His other NonExecutive directorships included Macsteel Holdings, Alexander Forbes, Standard Bank and SABMiller. In March 2007, he was appointed Non-Executive Joint Chairman of Mondi, a leading international paper and packaging group, when the company demerged from Anglo American plc. Ramaphosa was elected Deputy President of the ANC in Mangaung at its 53rd National Conference in Mangaung, December 2012. He was elected Deputy President following the general election of May 2014.

NATIONAL CHAIRPERSON BALEKA MBETE Baleka Mbete is a mother of five and a teacher who went into exile six weeks before the Soweto uprisings of June 1976. She worked for Radio Freedom in Tanzania and started playing leadership roles from 1981.

Over the years she worked in the women’s structures of the ANC (specialising in the Arts and Culture field). Back in South Africa, she was among the first contingent charged with the re-establishment of ANC structures after its unbanning, serving under such veterans as Walter and Albertina Sisulu, President OR Tambo, Dr Nelson Mandela and Mama Gertrude Shope. She became Secretary General of the ANC Women’s League in 1991 and played a part in the ANC’s policy development, especially in the women’s sector.

The country’s negotiations towards a new Constitutional 12

order were critical in this regard, as the framework for the new dispensation had been skilfully crafted.

Elected an ANC MP in 1994, she soon rose to leadership of the institution of Parliament and the Constitutional Assembly, which shaped South Africa’s new Constitution.

As Deputy Speaker and later Speaker of South Africa’s Parliament, Mbete served when the rules of the new Parliament were determined. At the ANC’s 52nd and 53rd National Conferences, she was elected as the National Chairperson. During her first tenure in this capacity, Mbete presided over the celebration, nationally and internationally, of the ANC’s centenary. In the transitional period of 2008, she served as Deputy President of the RSA. The Heads of States of Africa appointed her in January 2012 as a member of the Panel of Eminent Persons of the African Peer Review Mechanism (APRM), a task she will fulfil for four years in African countries. Ms Mbete was elected Speaker of the National Assembly following the May 2014 general election.

ANC | WHO’S WHO

SECRETARY GENERAL GWEDE MANTASHE Gwede Samson Mantashe was born in Lower Cala in the Eastern Cape. As a youth he began his activism in the then Student Christian Movement (SCM), which was pivotal in raising the consciousness of young people in the 1970s.

He joined Western Deep Levels mine in 1975 as a recreation officer.

In the same year, he moved to Prieska Copper Mines where he was a welfare officer until 1982. Mantashe moved to Matla Colliery where he co-founded and became the Witbank branch Chairperson of the National Union of Mineworkers (NUM) in 1982, a position he held until 1984. He was then elected NUM Regional Secretary in 1985. Mantashe became the NUM’s National Organiser from 1988 to 1993 and Regional Coordinator between 1993 and 1994. From 1994 to 1998 Mantashe served as the Assistant General Secretary

DEPUTY SECRETARY GENERAL JESSIE DUARTE Born on 19 September 1953 in Newclare, Johannesburg, Jessie Yasmin Duarte is a former spokesperson for the ANC. A long-time antiapartheid activist, she has served variously as a special assistant to Nelson Mandela, a member of the provincial cabinet (MEC) for Gauteng, and was an ambassador to Mozambique. She was detained without trial in 1988, released and placed under restriction orders until the State of Emergency was lifted.

One of nine children, she was schooled in Coronationville and became active in politics while studying. She then rose through the ranks as Secretary General of the Federation of TVL Women, a UDF affiliate, became a member of the SACP and served on the ANC PWV Provincial Leadership. She is currently in her fourth term on the National Executive Committee of the ANC. She also served as Head of Monitoring and Evaluation, Chief Operating Officer in the office of the President, the Director General in charge of African multilateral relations in DIRCO, the MEC for Safety and Security in Gauteng, and as a Director of the Beyers Naudé Bursary Fund.

She was elected Deputy Secretary General at the ANC’s 53rd National Conference in Mangaung, December 2012.

of the NUM, whereupon he was elected as the first worker General Secretary at the union’s congress in 1998, stepping down in 2006.

In 2006, he was appointed as the Executive Manager: Strategic Initiatives at the Development Bank of Southern Africa (DBSA), where he was the Chairperson of the Technical Working Group of the Joint Initiative for Priority Skills Acquisition (JIPSA) for two years.

He was elected Chairman of the South African Communist Party (SACP) in 2007, and also served as a member of the Party’s Central Committee. At the 52nd National Conference of the ANC in Polokwane, December 2007, Mantashe was elected as the Secretary General of the ANC. In 2012 at the SACP National Congress, Mantashe stepped down as the Chairman of the SACP, but was elected to the Central Committee of the Party. In the same year, at the 53rd National Conference of the ANC in Mangaung, he was re-elected as the Secretary General of the ANC.

TREASURER GENERAL ZWELI MKHIZE Dr Zweli Mkhize was born in Pietermaritzburg on 2 February 1956.

He graduated with an MB ChB degree from the University of KwaZulu-Natal in 1982.

He did his internship in Durban before being employed at Edendale Hospital in his hometown.

In 1986, he went into exile and continued with his medical practice in Swaziland and Zimbabwe. He returned to South Africa in 1991, starting his private practice in Pietermaritzburg. Between 1991 and 1994 he served as a member of the ANC’s National Health Secretariat, the structure that was tasked with the responsibility of developing the country’s health policy. He co-founded the Regional Health Forum and became a member of the National Health Forum.

Dr Mkhize has been provincial chairperson of the ANC in KwaZulu-Natal since 2008, and was re-elected in 2012. He is credited with having played an active role in the promotion of peace and stability in the KwaZulu-Natal province. His previous appointments include MEC for Finance and Economic Development from 2004 to 2009. He has also held the position of Chairperson of the ANC’s National Education sub-committee and was leader of Government Business in KwaZulu-Natal between 2004 and 2009. He served as MEC for Health in KwaZulu-Natal for 10 years, making him the longest-serving provincial Health MEC in the country. He was Premier of KwaZulu-Natal from 2009 until 2013. He was also voted best Premier by the Idasa Barometer Survey in 2012. He is a member of the ANC National Executive Committee and has been Chancellor of the University of KwaZuluNatal since 2009. Dr Mkhize is the Treasurer General of the ANC, having been elected in December 2012. The Progressive Business Forum operates under his leadership.

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PBF | UPDATE

How the PBF is working for you

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As part of its Enterprise Development Programme, the PBF hosted the final module of its Progressive Business Leader Training Programme. The topic 'Sales and Marketing Fundamentals' was presented in Johannesburg, Durban and Cape Town.

As part of its Trade and Investment Promotion Programme, the PBF undertook trade missions to China, Turkey and India during the second half of 2015.

PBF participants can expect a busy 2016. The PBF is currently reviewing its offering and intends to make a number of adjustments to further enhance the programme.

This includes, inter alia, providing practical training, such as tendering, business planning, and more to emerging enterprises. It also intends to create sectoral engagement opportunities in addition to its current Dialogue Programme.

On the administrative front, the PBF has been assessing its data integrity, and has decided that it will have to undertake a verification process to improve the quality thereof.

Changes in email and correspondence addresses that are not communicated to the PBF result in many participants not receiving invitations and publications. It would be appreciated if PBF enterprises could complete the Data Verification Sheet that accompanies this publication.

The PBF team looks forward to working with you in 2016.

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he second half of 2015 has once again been a busy, fruitful period. The Progressive Business Forum (PBF) participants enthusiastically participated in the programmeâ&#x20AC;&#x2122;s various offerings. The level of participation endorses the programmeâ&#x20AC;&#x2122;s objective of creating a platform for dialogue between corporate South Africa and the leadership of the African National Congress (ANC) for purposes of ensuring greater cohesion in achieving the national objectives of securing economic growth, creating jobs and reducing poverty. During 2015 the PBF hosted no less than 26 such dialogue events.

What is important is to ensure that the country has policies to effectively deal with the issues at hand; thus the ANCâ&#x20AC;&#x2122;s National General Council (NGC) held from 9 to 11 October 2015 was an important milestone for the movement to assess and adapt its policies to give effect to these objectives. In this publication we cover the outcomes of the NGC. The PBF hosted the business programme alongside the NGC. This was a jam-packed event that included a Presidential Gala Dinner, business breakfasts every morning with the economic cluster ministers, a business lounge and a series of round table discussions.

In the course of its normal activities, the PBF continued to host its dialogue programme, which included events with the Treasurer General in Cape Town, the Deputy Minister of Trade and Industry in Durban and the Deputy Minister of Small Business Development in Johannesburg.

Daryl Swanepoel PBF Convenor 15

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NGC 2015

G N I T C E REFLE WAY FORWARD ON TH

At the beginning of October 2015, the National General Council (NGC) of the ANC held a three-day event, where more than 2,000 delegates from all over South Africa assembled and reflected on the state of the nation, on the state of the economy and on the state of the ruling party. This session concluded with the adoption of a set of policies, a declaration and a way forward that will begin to shape the next few years of governance as we prepare to deal with the challenges that we face. The ANC's Progressive Business Forum also hosted a series of breakfasts during the NGC

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he breakfast sessions included guest speakers such as the Minister of Trade and Industry, who set out in some detail the type of government programmes particularly directed at the manufacturing sector. The Minister of Small Business Development, Lindiwe Zulu, gave an overall vision on the important role of small business, cooperatives, township enterprises in the economy and what the government is doing to promote these important forms of productive enterprise. Minister Jeff Radebe, the Minister in the Presidency, set out what he regarded as some key challenges. These included how to address the trust deficit that exists in this and many other societies. He also gave some examples of successful partnerships between the

business community and government.

The Minister of Trade and Industry, the Hon Dr Rob Davies MP, discussed the challenges facing the economy, which include electricity and water supply, and reiterated the governmentâ&#x20AC;&#x2122;s nine-point programme to deal with these.The Minister of Economic Development, the Hon Ebrahim Patel MP, spoke about how the global economy has changed, plus the slowdown in the developing world, particularly in China, and came up with suggestions on how South Africa can unlock the value in our economy. The Treasurer General of the ruling party, Dr Zweli Mkhize, also had the opportunity to set out the ruling partyâ&#x20AC;&#x2122;s point of view on some of the key issues and the importance of a deeper dialogue between business and labour.

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NGC 2015

PRESIDENTIAL GALA

DINNER AT THE NGC

President Jacob Zuma

ANC Treasurer General Dr Zweli Mkhize

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NGC 2015

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NGC 2015

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NGC 2015

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NGC 2015

T S A F K A E R B S S E IN S U B C G N DR ROB DAVIES The NGC Business Breakfast was hosted by MultiChoice, which was represented by the companyâ&#x20AC;&#x2122;s Executive Chairman, Nolo Letele. Below is an adaptation of the speech given by the Minister of Trade & Industry, the Hon DR ROB DAVIES MP

Dr Rob Davies, Minister of Trade & Industry

W

e are facing another aftershock from the continuing global economic crisis. The first aftershock was in Wall Street, but this one is in the East and relates to how the Chinese economy is trying to develop its domestic market as well as the concerns that this may be difficult to achieve. This has spooked the markets and has led to a degree of uncertainty. These effects are evident not only in generally depressed conditions in the world economy, but also in the way the IMF is downgrading its growth expectations for the world economy in 2016.

Not only is global trade seriously depressed, but primary products are being sold at reduced prices. If we compare the prices of some key minerals now compared to 2012, we will see that platinum has lost one third of its price, gold is about half of what it was and iron ore is down to one third. We also have overproduction in the steel sector, which is hitting us in the heart of our economy, as it is based on the production and export of primary mineral commodities.

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So we need to shift our place in the global division of labour.

To give an example: In a report produced by KPMG recently, it showed that Africa receives $US6 billion for producing and exporting coffee. The coffee is then made into consumable products outside of African borders and those products fetch US$100 billion. So the real value is evidently not in the primary production.

These are the realities we need to come to terms with. If we look at the performance of the manufacturing sector in the last quarter, there was actually serious positive growth in automotives, clothing and textiles, agro processing and a number of other sub-sectors. We also had declines in industries related to the iron and steel value chain and other sectors directly related to the mining industry.

Chapter three of the NDP on the economy talks about increasing exports in key sectors such as mining, agriculture and manufacturing, i.e. producing more value-added exports.

The government has developed a nine-point programme to

NGC 2015 Nolo Letele of MultiChoice

deal with the challenges facing the economy, which were largely home-grown at the beginning of 2015 and derived from the energy sector. Energy generation has now been stabilised, but has not solved all the problems. However, the nine-point plan had a number of elements, which included work on the agroprocessing and agricultural value chain, an energy challenge as well as a higher impact industrial policy action plan .

Industrial policy works where it is purposefully implemented, but the impact is actually felt five or six years later. We have been able to demonstrate this in the automotive sector, clothing and textiles, renewable energy, agro-processing, business process services and the film sector, among others, and we are prioritising three more sectors.

An important driver of industrialisation is the work we have been doing on African regional integration. We have focused on establishing large free trade areas that reach beyond our existing regional economic communities. We will not be able to occupy the same place in the African continent by simply providing manufactured goods; we are going to have to move up the value chain. For instance, Nigeria wants to start an auto industry; we are supporting them by getting South African companies to supply the assembly kits. We are also going to have to accept that certain value-added products from other African countries will find a presence in the local market.

The green economy is one of our big successes. We have

the largest renewable energy programme in Africa. Many believe the design of our Renewabale Energy Independent Power Producer Procurement programme (REIPP) is one of the best in the world. It has supported investments particularly in solar and wind, and we are hoping to reduce our carbon footprint by making the necessary products locally. In fact, one of the potential Special Economic Zones that has to be worked through by the Special Economic Zones Advisory Board is a solar corridor based in the Northern Cape.

The biggest challenges facing the economy include electricity and water supply. We also need to ensure we have affordable energy to support industrial activity. This also applies to water, which is a key constraint right now.

"THERE WAS SERIOUS POSITIVE GROW TH IN AUTOMOTIVES , CLOTHING AND TE XTILES, AGRO PROCESSING AND A NUMBER OF OTHER SUB-SECTORS" 25

NGC 2015

T S A F K A E R B S S E IN S U B C G N JEFF RADEBE The NGC Business Breakfast at Gallagher Estate was hosted by Mphaphuli Consulting and was addressed by the Minister in the Presidency, Mr JEFF RADEBE. Below is an adaptation of Mr Radebe’s speech

Jeff Radebe, Minister in the Presidency

S

outh Africa is facing three interrelated challenges of unemployment, poverty and inequality, which I concede to be our most pressing challenge. We have this dubious honour of holding the title of being the most unequal country in the world. We have this skewed distribution of income where, for example, the share of total income going to the top 10 percent income earners is between 60 and 65 percent. This is higher than all major economies in the advanced and the developing world. Inequality is bad for growth and development.

Chapter 15 of the NDP, entitled Transforming Society and uniting the Country, provides us with some profound insights about inequality. It says: “Inequality hardens society into a class system, imprisoning people in the circumstances of their birth.

Inequality corrodes trust among fellow citizens, making it seem as if the game is rigged.” We should ask ourselves what happens when people feel that the game is rigged? When they feel that the same rules do not apply to all the players? Quite frankly, they see no need to continue to play the game in which those who win and who lose are already predetermined.

But they don’t walk away peacefully. They protest and try to catch the attention of whoever cares to listen. It is no surprise that workers are making higher and higher demands for wages, because their own experience is that no matter how hard they work, their personal circumstances do not change relative to the boss’s. We see this in communities where protests are turning violent because people see others

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enjoying a good life while they can’t make ends meet.

What we are seeing today on the shop floor, at university campuses, in our communities, is not a phase that will pass.

It will only pass when those affected see their circumstances change and feel that their pain is taken seriously. We need to reawaken our own consciousness and the conscience of a nation. Many businesspeople like the NDP, what it says about economic growth, infrastructure investment, policy certainty easing the regulatory burden, checking corruption and reducing the levels of crime. And there is nothing wrong with that.

But also consider Chapter 15, which tells us that the deep inequalities and the associated low levels of trust have a highly negative impact on economic development and make it harder to forge a social compact that can move South Africa onto a higher developmental trajectory. Put simply: If we want economic growth, if we want development, if we want prosperity for our future, we must seriously address inequality.

In addition, our economy has been performing below its potential for some time and recovery has also faltered. The nett effect is high levels of unemployment and inequality, and low levels of investment. This serves as a sharp reminder of the fundamental developmental as well as transformational challenges that we still face. Surely one of the most important actions to get our economy back on track on a sustainable basis is to agree on the measures to significantly reduce inequality in addition to addressing energy shortages, infrastructure, skills and other constraints.

NGC 2015

Lufuno Mphaphuli of Mphaphuli Consulting

President Jacob Zuma with the Lord Mayor of London

We are no closer to meeting the NDPâ&#x20AC;&#x2122;s economic growth targets to provide opportunities to everyone. This provides an opportunity for business and government to work closely together to address the bottlenecks that are preventing us from reaching those goals. The private sector needs to play a bigger role in growing the economy and also in the creation of jobs.

To enable everyone to achieve a decent standard of living that is envisaged in our plan requires a resize of our economy measured by GDP to three times its current size by 2030. Thatâ&#x20AC;&#x2122;s radical socio-economic transformation.

What this practically means is that each company should have a growth strategy to triple its size by 2030.

Other targets such as a reduction of unemployment and investment, amongst others, requires equally bold actions

on the part of the private sector.

The many challenges facing our country present massive business opportunities. The NDP calls on us to work together and to forge a social compact to advance on the challenges that are holding us back. It will not be easy, and at times sacrifices will have to be made. We should approach this task with an open mind, with a commitment to change.

Time is not on our side - let us get down to work.

"THE MANY CHALLENGES FACING OUR COUNTRY PRESENT MASSIVE BUSINESS OPPORTUNITIES" 27

NGC 2015

T S A F K A E R B S S E IN S U NGC B LINDIWE ZULU The NGC Business Breakfast at Gallagher Estate was hosted by Velani Unlimited, which was represented by Freedom Hadebe. Below is an adaptation of the speech given by the Minister of Small Business Development, the Hon LINDIWE ZULU

Lindiwe Zulu, Minister of Small Business Development

T

he President appointed the National Planning Commission in 2010, which comprised 26 people primarily from outside government. There begins the partnership between government, civil society, the private sector, progressive NGOs and so on. The plan resulted after two years’ consultation involving community formations, business through chambers and sector bodies, unions and the non-profit sector, parliament plus development finance institutions.

The NDP balances development and redress by acknowledging the interlinkages between the triple challenges of poverty, inequality and unemployment. It identifies the single challenge of rolling back poverty and inequality. So, the partnership is very important, something we hold dearly as a Department of Small Business Development. We are proud of our country, and our collective commitment can make it happen. As the Treasurer General said, we must focus on what we can do best together and remove the negative narrative.

Regarding economy and employment, the NDP identified critical success as South Africa’s achievement of a gross domestic product of 5 percent or over a doubling of the GDP capital by 2030. It also anticipates that unemployment will be reduced from the current 24 percent to 6 percent by 2030.

Although 2030 seems to be very far away, in reality it is not. The plan hopes to achieve this through the creation of some

28

11 million jobs, 90 percent of which would come from SMMEs. This will require the economy to treble in size by 2030.

According to the NDP, South Africa is in a low growth middle income trap, which is characterised by a low level of competition and unemployment, poor skills and generally low savings profile. It proposes three specific interventions to remedy this: SMMEs development, boosting productivity and a progressive labour market. The NDP acknowledges that skewed apartheid development has resulted in a high cost structure for doing business in South Africa, and that government has not done enough in the past 21 years to bring down the overall cost of business in order that SMMEs can grow and flourish - our department is focused on that.

The creation of the Department of Small Business Development is government’s bold response to situational analysis advance in the NDP. In July 2014, President Jacob Zuma signed the new department into existence to provide financial and non-financial support to SMMEs through the Small Enterprise Finance Agency and the Small Enterprise Development Agency. The department also inherited the programmes of the Department of Trade and Industry, and because we do not want to collapse the systems and the support small businesses had at the time, we have continued those programmes. However, we need to review these to respond to

NGC 2015

Freedom Hadebe of Velani Unlimited

the real challenges that small and medium enterprises face, so we have started review processes and are looking at having academic institutions step in and assist us in developing programmes to address these challenges.

Our vision is that of an SMME development and support ecosystem that provides financial and non-financial support, and is customised to the life stage of SMMEs. We would like to see targeted procurement opportunities in the public and private sector being earmarked and set aside for deserving and qualifying SMMEs. We would like to see more SMMEs entering the supply chain of big corporations and the service and manufacturing sector, and would also like big corporates to open up those opportunities for small and medium enterprises.

Our department has also begun negotiations with the National Treasury to review the Preferential Procurement Policy Framework Act to create a dispensation for 30 percent of state procurement to be set aside. This procurement is vital for the growth of small and medium enterprises, an opportunity particularly for young blacks.

The department is talking with various business chambers and sector bodies to establish enterprise and supply development programmes, and has created a special projects

Dr Zweil Mkhize, ANC Treasurer General

unit to oversee some of these. We have also developed the National Informal Business Upliftment Strategy, which has been adopted by Cabinet and is being rolled out in the nine provinces; the strategy calls for a progressive legal and regulatory regime for informal traders, intergovernmental coordination, enterprise development and promotion of informal business, stakeholder management between communities and informal business, knowledge management and capacity building. We call it NIBUS, the National Informal Business Upliftment Strategy. Gauteng and KwaZulu-Natal are in the process of consulting their provincial strategies for this.

"WE ENVISION AN SMME DE VELOPMENT AN D SUPP ORT ECOSYSTEM THAT PROVIDES SUPP ORT AND IS CUSTOMISED TO SMME 'S LIFE STAG ES " 29

NGC 2015

T S A F K A E R B S S E IN S U NGC B EBRAHIM PATEL The NGC Business Breakfast at Gallagher Estate was hosted by Mphaphuli Consulting, which was represented by Lufuno Mphaphuli. Below is an adaptation of the speech given at the breakfast by the Minister of Economic Development, the Hon EBRAHIM PATEL, MP

Hon Ebrahim Patel, Minister of Economic Development

T

he concept of the National General Council (NGC) relates to very significant challenges the economy has to respond to. Since our economic plan was initially developed, there has been a significant change in the global economy. Global growth is slower and the IMF has revised prospects for growth in a number of key economies. Subsequent data indicates continued sluggish growth in the European Union, historically our most significant trading partner.

More significant has been the slowdown in growth in the developing world, particularly in China. Looking at the macro trends of trade in the past seven years, what is most striking is growth in exports to China, principally minerals and the expansion of manufacturing exports to the rest of Africa.

Chinaâ&#x20AC;&#x2122;s slowdown has an impact on both of these, not only in the volume of trade between South Africa and China, and the price at which the exchange of commodities take place, but also on the prospects of growth in Africa. So there are challenges that need to be navigated.

Russia is currently in recession, so are Brazil and Canada. Australia has revised its growth sharply downwards. All four economies are mineral-led and represent the softening of global demand, so it is in this

30

context that we need to navigate our way .

In the last few years, we have recovered from the global economic recession. Our economy, like many others, went into recession around 2009 and recovered relatively quickly. Over this period, we have had more modest growth than in the period before, but nonetheless it has been positive growth. We are still in a positive growth phase; year-on-year the GDP grew by 1.2 percent in real terms. However, on a quarter-to-quarter basis, we had a decline in GDP of 1.3 percent. So the impact of this global slowdown is beginning to show itself in levels of output and increasingly it may translate to levels of investment.

On the jobs front, the picture is more complex. On the one hand, in the last quarter, we have actually had quite substantial growth. But on the other hand, the labour force grew faster than the number of jobs that were created.

We have an energy challenge that is not short term.

Essentially, we are producing less energy than the economy needs. Eskom is now managing energy carefully and actively, but we need to ramp up energy generation.

Fundamentally, the economic strategy on which we are basing our response, not only to the more recent softening of global demand, but also to lift the rate of growth in

NGC 2015

Lufuno Mphaphuli, Minister Ebrahim Patel & PBF Convenor Daryl Swanepoel

the consumer goods sector, it’s the moment to reclaim the domestic market.

I have emphasised the importance of partnerships today between the government and the private sector. We are in very successful partnerships with parts of the private sector already, we can continue to expand on that, but we can also deepen our existing partnerships. We need to consider the rest of Africa. The more value that this partnership brings to society - in enhanced growth, in inclusive growth, in jobs and so on, the more logic there is to the state putting resources into the partnership with the private sector. <

the economy, is industrialisation; it is infrastructure development; it is innovation in the economy, i.e. reinsuring the value add; it is investment, lifting the rate of private and public investment; it is inclusion, that is small business development and the government’s efforts to combat poverty and to address inequality; and finally it is about integration, connecting the South African economy with the rest of the continent in a much deeper way.

How do we unlock the value in our economy? Our level of input penetration is large and that provides an opportunity.

We certainly cannot make everything that we import - we will always continue to import a significant part of the nation’s needs. But there is a growing part of that which can, in fact, be manufactured locally.

Also, we now have a competitive exchange rate. In the last few months, the rand has depreciated against the dollar, and that provides an opportunity for South African exporters as well as local companies that want to reclaim part of the domestic market. So the amount of rand to the dollar gives you a more competitive price when you want to sell your products to local consumers, and you are competing against imports. It means we pay a bit more on oil, we pay more on imported capital equipment, but in

"WE PAY A BIT MORE ON OIL, WE PAY MORE ON IMPORTED CAPITAL EQUIPMENT, BUT IN THE CONSUM ER GOODS SECTOR, IT’S THE MOMENT TO RECLAIM THE DOMESTIC MARKET" 31

FEATURE | AFRICAN UNION

The African Union’s role in Africa DR NKOSAZANA DLAMINI-ZUMA, Chairperson of the African Union Commission, explains the vision of the African Union (AU) and its role on the African continent

Dr Nkosazana Dlamini-Zuma, Chairperson of the African Union

T

he vision of an African Regeneration and Renaissance championed by early PanAfricanists such as Seme and Nkrumah, Garvey, Du Bois and Constance Cummings-John led to the decision at the Fifth Pan-African Congress in Manchester in 1945 to free Africa from colonialism and apartheid within 50 years.

That is why Emperor Haile Selassie said at the launch of the Organisation of African Unity in 1963, “We name as our first great task the final liberation

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of those Africans still dominated by foreign exploitation and control. Our brothers (and sisters) in the Rhodesias, in Mozambique, in Angola, in South Africa cry out in anguish for our support and assistance. To them we say: Your pleas shall not go unheeded.

The resources of Africa and of all freedom-loving nations are marshalled in your service.”

This mission was achieved (except for Western Sahara) when South Africa was liberated 49 years later.

OAU Secretary General Salim

Salim, in his report on the Fundamental Changes in the World and Implications for Africa, advocated for a new continental mission for the continent, leading to the transformation of the OAU into the Africa Union in Durban, 2002.

At the Golden Jubilee of the OAU/ AU in 2013, the AU decided to elaborate its mission for the next 50 years in Agenda 2063: The Africa we Want. The role of the Afican Union, working with member states and regional economic communities, is to work for the realisation of an integrated,

FEATURE | AFRICAN UNION

prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the world.

Agenda 2063 prioritises investments in the African people, in health, education, skills and basic services, and the modernisation of African agriculture and agro-processing. It plans to speed up infrastructure development - energy, including renewable energy such as geothermal, wind, solar and hydro energy like the Granda Inga Project. It also focuses on transport infrastructure such as highways, aviation (the creation of a single aviation market) and railways (Integrated High Speed rail to connect capitals and commercial centres). It aims to expand ICT and broadband capacities, emphasise industrialisation to create jobs and enterprises for millions of youth, eradicate poverty and build inclusive societies and shared prosperity. Agenda 2063 envisages robust development of the blue and maritime economies as one of the drivers of economic growth.

In confronting the challenge of the Ebola outbreak, Africa mobilised 855 health workers from 18 member states, the biggest contingent deployed on the ground, with the support of African business and other partners.

Agenda 2063 calls for an African skills revolution. The AU Commission requested the African Capacity Building Foundation to conduct a study on the key critical technical skills and capacities required for implementation of Agenda 2063. It is shocking that in every technical, engineering, scientific skills and research area, there is massive skills shortage. That’s why Africa still annually imports over US$80 billion in food, why manufacturing and industry remain marginal to global production and value chains, why we only produce 2 percent

of the pharmaceutical products we consume and that intra-African trade stands at around 15 percent.

The AU is in conversation with universities and technical vocational education and training (TVET) institutions about the realignment of skills training with jobs required to spur industrialisation. Current enrolments in higher and further education are less than 10 percent, and they have set the continental target to grow this to 40 percent.

The AU aims to launch an ongoing conservation among political, business and tertiary education

“

African countries and abroad.

Agenda 2063 also calls for a paradigm and mindset shift for Africans to promote their culture and identity, and for the spirit of Pan-Africanism to inform all its approaches. This includes building creative arts and industries to bolster development.

The African leaders vowed to silence the guns by 2020, as a clarion call to speed up peace and security efforts. Peace and good governance are essential elements for socioeconomic growth and development, and the African Peace and Security Architecture and the African

Agenda 2063 prioritises investments in African people, health, education, skills and basic services, and the modernisation of African agriculture

leaders to share views and coordinate efforts on key integration and development projects. The inaugural African Economic Platform Dialogue will be convened in May 2016.

Having spearheaded the development of Agenda 2063 with many sectors of the society, RECs and member states, the AU’s role is clearly to drive the implementation of Agenda 2063. Since the June AU Summit in South Africa, it has assisted 21 countries to domesticate Agenda 2063 into their national development plans.

We are moving on key flagship projects, including free movement of people, goods and services, and towards negotiations on the Continental Free Trade Area. The AU passport is rated among the best worldwide and the AU plans to promote its use and acceptance by all

”

Governance Architecture have been developed as interlocking mechanisms to address challenges posed by conflicts and governance in Africa.

For example, Ethiopia, headquarters of the AU, has its current national mission to become a middle income country by 2025, transform agriculture and agro-processing and to be the African hub for light manufacturing.

This, it knows, could not be done without skills. In 1991, Ethiopia had 3,000 students enrolled in universities and only three technical colleges.

Twenty-five years later, its university sector has grown by over 16 percent a year, and with 600,000 students enrolled in universities. Seventy percent of this intake is in STEM, and 40 percent in engineering.

They’ve also expanded their TVET sector from three colleges in 1991 to 33

FEATURE | AFRICAN UNION

AU headquarters Addis Ababa, Ethiopia

34

forestry, infrastructure, energy, financial services, ICT and other sectors. South Africa is a champion of the AU infrastructure development programmes, and its state-owned enterprises and development finance institutions are venturing into crossborder partnerships.

South Africa is home to a large number of African professionals, students and entrepreneurs from other parts of the continent. Together, we must remember the wise words of late President Nelson Mandela when he said, “We owe it to all the peoples of the continent to ensure that they see

in us not merely good leaders waxing lyrical about development, but as the front commanders in the blast furnaces of labour, productive investments and visible change.”

Indeed, Africa is a continent with endless possibilities. As its premier institution, the AU’s raison d’être is to push its integration and to play a transformative role in the overall development of the continent.

We urge the PBF to assist in popularising Agenda 2063 as well as its 10-year Implementation Plan in all its platforms, including all of its websites and publications. <

over 1,340 in 2015, training one million young people each year. The country plans to build over 6,000km of modern rail, and has sent young people overseas to train as rail engineers and other related skills, in addition to setting up a railway academy. This example shows that a skills revolution is possible in Africa; today the country is amongst the top 10 fastest growing in the world.

South Africa has a lot to offer, but it should also learn from best practices on the continent. Together, South Africa, Kenya and Nigeria are amongst the top 10 foreign direct investors in Africa: in mining, retail,

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FEATURE | BRAZIL CONFERENCE

50 anniversary of Brazil’s Department of Commercial Promotion and Investment th

DARYL SWANEPOEL, Convenor of the PBF, attended the 50th anniversary of Brazil’s Department of Commercial Promotion and Investment (DPR) at an international seminar in Brazil on 14 October 2015. Here he reports back

T

he theme of the seminar, hosted jointly by the DPR and the Alexandre de Gusmão Foundation, was 'Half a century promoting Brazilian exports and investment attraction'. Mr Swanepoel was asked to prepare a paper and to participate in the panel discussion on 'Network creation between public and private entities and policies of coordination between commercial promotion and investment attraction entities'. The document is available on the PBF website.

His paper approaches the topic from South Africa’s perspective and its positioning within BRICS. It analyses the South African economy and, within that context, concludes with a number of important considerations in developing the country’s trade and investment approach and, consequently, its trade and investment promotion strategy. According to the paper’s conclusions, it is evident that the issues identified cannot be solved by any one organisation or, for that matter, any one country working in isolation. It will require intensive coordination within and between private and public entities involved with trade and investment promotion.

36

The paper also identifies some of the impediments to effective trade and investment promotion. To resolve these, a domestic and multilateral cooperative approach is required to inform both public and private trade and investment promotion agencies.

The paper also makes some practical proposals as to how to improve networking and coordination between public and private entities involved with trade and investment promotion, both domestically and amongst strategic trade partners. In conclusion, the paper discusses the fact that cooperation has become an urgent imperative.

In highlighting these issues, the document illustrates the nature of the conversation that will be required in respect of trade and investment promotion, both within South Africa and in the context of BRICS. It also discusses the need for well-defined cooperation mechanisms between those involved in promoting trade and investment. This includes matters such as designing mechanisms to address trade imbalances, strategies to change the supplement trade with manufacturing, including the beneficiation of raw materials prior to

export and the problem of transacting in third party currency.

The paper also deals with questions such as the focus on national interest versus mutual interest that often leads to uncoordinated trade and investment promotion, and the disjuncture that often exists between bilateral preferential trade agreements and trade bloc, for example, BRICS, agreements.

Measures are also required to promote greater integration and easier movement of people and

FEATURE | BRAZIL CONFERENCE

â&#x20AC;&#x153;

â&#x20AC;?

both at a domestic and multilateral level. This could be achieved through establishing structures such as a BRICS Business Forum for private sector

business chambers and an association of BRICS trade and investment promotion agencies for government agencies across the BRICS region.

A greater degree of policy and tactical coordination between commercial promotion and investment attraction entities could be established through setting up a BRICS Dialogue Forum.

In addition to business and trade and investment promotion agencies, other stakeholders such as research institutions, political formations and the media could be included to improve the quality and effectiveness of communication and advocacy on the objectives of BRICS. <

goods, and to maximise bilateral preferential agreements to the benefit of manufacturing capacity across broader trade blocs.

There exists an urgent need to give effect to the BRICS Contact Group for Economic and Trade Issues (CGETIs) Trade and Investment Cooperation Framework, which has been established to enhance coordination and possible joint action between member states.

Swanepoel maintains that there is a need for greater coordination of strategy, policy and promotion activity between trade and investment promotion agencies and chambers of commerce,

The document illustrates the nature of the conversation that will be required in respect of trade and investment promotion, both within South Africa and in the context of BRICS

37

BUSINESS OPINION | VELANI UNLIMITED 38

Stakeholders in the same country We are all stakeholders in the same country, says CEO of Velani Unlimited, FREEDOM HADEBE. Government, business, communities and individuals form a continuum; why are we acting separately?

A new world order Globally, the trend towards making a positive social impact is founded on an increasing understanding that all actions - political, commercial and personal - are profoundly interlinked.

The environmental drive has increased this understanding. The 2008 banking crisis gave rise to an emphasis on sustainability in all spheres of life.

Quantum physics, quantum medicine and recent business theory remind us that all systems, whether in the body, in an organisation or out in interstellar space, are interdependent and what happens in one system will inevitably affect all the others.

Wherever you choose to grasp a handkerchief in order to pick it up, you move all parts of it as soon as you lift it.

We South Africans have become so focused on the minutiae of our push for transformation that, where once we were leading the creation of a new world order, we are now paralysed by detail and a communications fog.

As companies, we are so fixated on the various percentages of profit or revenue we must allocate to enterprise development, training and corporate social development that we don’t plan coherently for an overall social outcome.

Government writes the policies; many of them extremely good. But it holds back from execution, leaving that to the commercial and industrial sector.

Or it gets involved in public/private partnerships to the extent of retaining the power of sanction but doesn’t get involved in project action.

As businesses, we act communally only when government and public sentiment force us to do so. As individuals, we wait for government or business to help us. We don’t take our destiny into our own hands. In essence, South Africa’s collective entrepreneurial spirit is being smothered by outdated habits of thought and roles and rules unfit for the purpose of transformation.

Disruption through an emphasis on impact Velani Unlimited has seen this most recently in the project we undertook in Bekkersdal on the West Rand where, theoretically, our priority was the repair of broken down sewerage systems and the building of new sewerage infrastructure. By the time the contract was awarded to us, the community was rioting. A previous contractor had done nothing for two years, partly because the contract came with job creation, enterprise development and corporate social investment obligations that the contractor seemed unable to initiate.

All the project stakeholders were firmly entrenched behind conceptual barriers.

Since our involvement, the project has been named the most successful of its kind, creating jobs, incubating businesses and improving quality of life. What did we do differently? We saw the community as our first priority.

Repairing and building infrastructure is simply about good project management and good engineering practice. As an infrastructure specialist, you need to connect the right pipes in the right way in the right trenches. There is international best practice to follow. It might be complex, but it is not difficult.

Developing and transforming a community means listening and providing access to information.

It entails motivating community members whose lifelong poverty has stripped them of self-belief and the will to try just once more. It calls for thoughtful planning of how and where you recruit unskilled and semi-skilled workers so that you ensure that benefit flows to all parts of the community.

It means helping the community, your own company and the government entities involved to identify and prioritise those project activities that will have the deepest social impact - and then working communally to implement them. It is about being a stakeholder not just in a project, but in life itself. It is about getting involved. <

Toss the clichés Let’s not get stuck in 'isms' or trapped in historical definitions such as 'socialism' or 'communism' or the collective.

Rather, let’s be practical. The fact is that incremental change is not working in terms of transforming this country.

Certainly, it is not working fast enough.

So, we have to discard tradition. We have to break the old rules. And we have to smash the old barriers.

I am not talking about the obvious barriers, such as race and gender. I am talking about the subtle assumption we all make about who does what in society. We still buy into the idea that business does business and doesn’t do government; that government governs but cannot or should not function as a business; that government and business have power and money and, therefore, that individuals are dependent on them for survival; that government and business can both be benefactors, but not in the same areas of activity.

All of these assumptions are nonsense. Individuals are also employees, employers and voters.

Governments are also consumers.

Businesses are enforcers of government

policy, if only because they must obey the laws that are applied to them and to society in general. By artificially compartmentalising ourselves and the organisations with which we interact, we are allowing development to fall through the cracks that separate us all.

BUSINESS OPINION | VELANI UNLIMITED

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reating a positive social impact is imperative in South Africa because, morally, we must redress the past and, practically, transformation is critical to our survival as a sovereign state. However, because we’ve been focused on our own transformation for more than 20 years, we’ve lost touch a little with the fact that social impact is now a global trend. We are so inwardly focused that we are out of sync with the insight that underpins the global trend: everyone impacts everything in society.

We have become a splintered society.

We have forgotten that, whether we are individuals, members of a particular community, employees, business owners or government officials, we are all stakeholders in the same country. We no longer act with the knowledge that every decision we make has a direct or indirect impact on how this country evolves.

By thinking of ourselves as separate entities, we are indeed disruptive in a negative way. To be disruptive in a positive way, we need to think cohesively and aim for a collectively beneficial outcome.

Velani unlimited is a diversified group of businesses that currently operate in construction, civil engineering, cleaning, sanitation, franchising and real estate development. velaniunlimited.co.za 39

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An in-depth look at ERNST & YOUNG’S (EY’s) fifth annual Africa Attractiveness Survey

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ince the programme was initiated in 2010, EY has been among those at the forefront of promoting the African growth story and advocating for greater levels of investment. Its mission, from the outset, has been to provide factual substance to the emerging 'Africa rising' narrative.

Over the course of the past five years, it has helped to tell new stories about Africa, stories of economic growth and opportunity, democratic progress and human development. However, in telling these stories, it has not shied away from the challenges that remain before Africa’s vast human and economic potential can be unlocked.

So where is Africa on its journey? In the past year, Africa has experienced stronger headwinds than in recent times. Consequently, economic growth for 2016 is likely to be at its lowest in five years, dragged down by the impact of lower oil prices on the Nigerian and Angolan economies, the softening of other commodity prices, as well as South Africa’s still sluggish growth. The most recent survey reveals that investor sentiment has deteriorated and that foreign direct investment (FDI) projects are down for a second consecutive year.

At the same time, however, economic growth across the continent remains

resilient. Despite the headwinds, average growth in sub-Saharan Africa (SSA) will be higher than the emerging markets’ average, and the region will still experience the second highest economic growth rate in the world this year. Economies like Ethiopia, Kenya, Tanzania, Mozambique, Zambia and Cote d’Ivoire are among 22 SSA economies the International Monetary Fund (IMF) expects to grow at more than 5 percent this year.

The data also shows that, although the number of FDI projects fell this year, the value of those projects increased significantly, as did the number of jobs created as a result. In fact, the capital value of FDI was by far the highest over the past five years, so much so that, as a region, Africa received the second highest amount of FDI in the world in 2014. It is not yet known whether this is sustainable, but, at the very least, it is cause for celebration.

This mixed picture is not surprising.

It reflects Africa’s diversity and complexity - there is never a 'one size fits all' answer. Perspective remains important. The EY’s has been, and remains, a 'glass is half full' perspective.

It remains confident that the 'Africa rising' narrative stays intact.

However, Africa’s future will not

take care of itself. The EY believes that Africa and its leaders are poised at an inflection point: deliberate and urgent choices are required to raise levels of productivity and competitiveness, accelerate structural transformation and make the shift toward an inclusive, sustainable growth path. From its vantage point, there are five priorities for action to a successful African future: 1. Embracing shared value: The central premise behind this is that a company’s competitiveness and the health of the communities and economy around it are mutually dependent. It is a fundamental business philosophy that recognises that profit and purpose can coexist and be mutually reinforcing. The organisations that have been the most successful in Africa are taking a long-term view. They realise there are no shortcuts and, more importantly, for their business to grow sustainably over the longer term, the economies and communities in which they operate need to grow sustainably. The bigger the skills pool, the more jobs and economic opportunities are created and the larger the spending power of consumers and government. This will result in a number of opportunities

FEATURE | AFRICA ATTRACTIVENESS SURVEY

Africa Attractiveness Survey 2015: making choices

Realising the possibilities: Five priorities for action

Shared value Pursue profit with the purpose to achieve shared value

Entrepreneurship Create enabling conditions for entrepreneurs and actively support SME development

Regional integration Accelerate the process of developing regional markets with critical mass

Infrastructure development Implement enabling infrastructure for growth

Partnerships

AFRICA

Promote collaborative partnerships across business, government and social sectors

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FEATURE | AFRICA ATTRACTIVENESS SURVEY

sovereign states. Regional integration and stronger regional institutions (such as the African Union and Regional Economic Communities) are key to promoting greater levels of regional investment and trade, because these will make it easier and more efficient to conduct crossborder business, and will create markets with greater critical mass, coherence and density of economic activity. Progress is being made, perhaps most promisingly with the Tripartite Free Trade Area. However, greater urgency is required to accelerate the process.

4. Bridging the infrastructure gap: Ultimately, the impact of regional integration will depend on the infrastructure’s quality; to physically connect markets, reduce the costs of delivered goods, facilitate peoples’ mobility, remove productivity constraints, generate enough electricity to support the development of manufacturing and other industrial sectors and enhance the region’s overall competitiveness.

A multilateral study revealed that Africa has the weakest infrastructure in the world, and that an annual investment of $93 billion would be required for 10 years to close the gap with other developing regions.

More recent analysis by EY and the Infrastructure Consortium for Africa (ICA) shows that the gap is being closed. The greatest challenge

remains in effectively executing these projects, as around two thirds of active infrastructure projects are still in pre-implementation stages.

5. Promoting partnerships: There is a proverb that, roughly translated, says, “If you want to go fast, then travel alone; if you want to go far, then travel together”. Partnerships are going to be essential to drive the inclusive, sustainable growth that is so critical to Africa’s future.

Unfortunately, the relationship between government and business across many parts of Africa is not always as engaging and productive as it could and should be. Too often, business is viewed as part of the problem. In contrast, government and business, both local and international, need to become partners to embrace a philosophy of shared value and to drive a common agenda of inclusive, sustainable growth. In order to successfully drive inclusive, sustainable growth, there needs to be a proactive effort to forge multidimensional (rather than bilateral) partnerships - across business, government, development finance institutions, donor agencies, and so on.

What is clear is that we are presented with a wonderful opportunity to make a genuine difference in our working lives.

This is the time and place for Africa’s future; our generation of leaders can make it happen. <

for business growth. To accelerate Africa’s progress, it is critical that the private, public and social sectors all actively embrace this philosophy.

2. Fostering entrepreneurship: A key element of the win-win growth equation will be promoting entrepreneurship across Africa.

Entrepreneurs act as vital agents of change by developing new products and services, implementing more efficient production methods and creating new business models and industries. Small and growing businesses create jobs that sustain families across the continent, and will be essential if Africa’s burgeoning population is to be a source of economic growth rather than social unrest. As technology and innovation accelerate, a new breed of 'social entrepreneurs' are creating low-cost, highly scalable businesses tackling previously intractable problems such as lack of sanitation, clean water and affordable health care and education. For organisations genuinely committed to shared value, supporting Africa’s entrepreneurs should be a priority.

3. Accelerating regional integration: With the shifting dynamics in the global economy, Africans have a unique opportunity to break the structural constraints that have long marginalised the continent. However, this will only be achieved by driving greater regional coherence in all 54

By 2030, in terms of per capita income, SSA should reach the level where emerging Asia is today 6,000

Forecast

Source: Oxford Economics database, accessed in August 2014

5,145

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5,000

4,706

4,000

3,903 3,035

3,000

2,000

BRIC

1,878

Southeast Asia 1,000

Emerging Asia Eastern Europe SSA

0 2003

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07

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Political authority of six state-owned companies and currently a member of the ANC’s National Executive Committee, Minister LYNNE BROWN has always been active in the struggle for women’s rights

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national airlines), Alexkor (a diamond mine) and the South African Forestry Company Limited (timber and forestry).

During a 20-year stint in the Western Cape Provincial Legislature, she served as Premier of the Western Cape Province in 2008 (she is the fourth coloured Premier of the Western Cape). She also served as Speaker of the Western Cape Legislature and as Minister for Finance, Economic Development and Tourism until her elevation to the

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ynne Brown was appointed as South Africa’s Minister of Public Enterprises after the country’s May 2014 national elections. Brown, who was born in Cape Town and grew up in Mitchell’s Plain, is currently the political authority (referred to officially as the 'Shareholder Representative') of six state-owned companies. These are Transnet (rail, freight, ports and engineering), Eskom (electricity utility), Denel (advanced manufacturing and arms industry), SA Express (one of two

office of the Premier in 2008.

She is a member of the African National Congress’s National Executive Committee, the South African ruling party’s highest decision-making body. She was elected member of its National Executive Committee in both 2007 and 2012.

A teacher by profession, she was active in the struggle against apartheid, with a particular emphasis on women’s issues. She was Chairperson of the Mitchell’s Plain Youth Congress in 1979 and a member of the United Women’s Organisation from 1979 to 1985. She was also a member of the United Women’s Congress from 1985 to 1990, serving first as Education Officer and then as Provincial Secretary, and was involved in the United Democratic Front from its formation in 1983 until its disbandment, serving as a member of its Finance Committee.

She has served as Western Cape Provincial Secretary of the ANC Women’s League since 1990. Her involvement in education also continued after her teaching years.

She was a board member of the National Literacy Project and is currently a board member of the Extra-Mural Education Project. She initiated and was Director of the Women’s College in 1990. In 1994 and again in 1999 she was elected as an ANC Member of the Western Cape Provincial Legislature. She was Chairperson of the standing committees on Community Services and on Health and Welfare, and served as an ANC Whip and Chief Whip in the legislature.

When the Democratic Alliance took over the province in 2009, Brown was replaced by Helen Zille as Premier.

She then served as Leader of the ANC Opposition from 2009 until May 2014, when she was appointed by President Jacob Zuma to his cabinet as Minister of Enterprise.

POLITICAL PROFILE | LYNNE BROWN

Woman of substance

45

INFRASTRUCTURE

Nelson Mandela Children’s Hospital nears completion After almost two years, specialist health care facility The Nelson Mandela Children’s Hospital, the first children’s hospital of its kind in South Africa, is almost completed and will open by the end of 2016

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t was in 2005 that the idea of a children’s hospital was first ignited, when Madiba personally challenged the Nelson Mandela Children’s Fund to investigate paediatric health in South Africa. Over the next few years, this simple request grew and led to the establishment of the Nelson Mandela Children’s Hospital Trust (NMCHT) in 2009. The Hospital Trust has a vision of creating a specialist health care facility 46

that will complement the current health care system in southern Africa.

The Nelson Mandela Children’s Hospital, for which construction began on 22 April 2014, has been designed with such meticulous care and attention to detail that it could well have been imagined by one of the children who will one day seek medical attention there.

The result is a first-of-its-kind hospital for children in South Africa.

The hospital will be located right next to Wits University’s Medical School in Parktown, Johannesburg. This is near other medical facilities, and allows for paediatric academic teaching access from the Wits Medical School, maximising operational efficiencies and staffing models.

It has been designed as a worldclass, highly advanced, specialised children’s hospital that will shape

the lives of the children of Africa and shape the future of a greater Africa. The hospital will work on a referral basis across all its centres of excellence.

“The passion that drives the Nelson Mandela Children’s Hospital project is the refusal to settle for thousands of our children living shorter lives and frustrating, painful existences when we have the capability to offer them the opportunity of getting the best health care,” said Professor Sithembiso Velaphi, Head of the Department of Paediatrics, Chris Hani Baragwanath Hospital. “The plain truth is that, even in sub-Saharan Africa’s best resourced city we do not have sufficient capacity to treat our sickest children,” he continued. “And in many of our neighbouring countries this kind of care does not exist at all.

“I specialise in the medical discipline of neonatology - care of newborn babies – and each year about 4,000 newborn and young babies are admitted to Chris Hani Baragwanath Academic Hospital, where I work. A significant number of these infants have been born with life-threatening conditions – heart defects, problems involving the spine and brain, and abnormalities of the lungs and bowel.

“Most of these conditions can be corrected - or substantially improved - by means of surgery. Each year at Chris Hani Baragwanath Academic

Hospital and other teaching hospitals in Gauteng, such surgery affords large numbers of newborns a new, healthy lease on life,” the Professor added.

Once the need for this hospital was established, the Hospital Trust received a commitment from the South African government, through the Department of Health, to support the hospital’s operating costs once it

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It has been designed as a world-class, highly advanced, specialised children’s hospital that will shape the lives of the children of Africa

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opens. This support will help ensure the sustainability of this not-forprofit hospital.

The hard work of the Nelson Mandela Children’s Hospital Trust and compassion of all the donors, both locally and abroad, has thus far raised R700 million of the R1 billion target.

All efforts are focused on raising the balance required in time for the hospital’s opening at the end of 2016.

“Since its inception, the Nelson Mandela Children’s Hospital Trust has received support from donors, partners and various stakeholders who took it upon themselves to make sure that this, a living statue for Madiba, is built. And as we look towards its completion, we ask everyone to come together and help us finish the building,” says NMCHT CEO Sibongile Mkhabela.

The Hospital Trust Board is chaired

by Mrs Graça Machel, who is supported

by Ms Nana Magomola as Deputy Chairperson. The board features various philanthropists, businesspeople and industry experts who have volunteered their time to guide the project through its various phases. They are supported by various committees that focus on the project’s different aspects.

The R1 billion capital campaign target will be for building, equipment, training, interior design as well as any other costs required to establish the facility. This ambitious target is what the global fundraising team set out to reach and has made such incredible strides towards reaching. The hospital is the first of its kind to be built solely on the generosity of the world’s citizens, making it a unique partnership between the public and private sectors as well as civil society.

Major donors include Islamic Relief, Bill & Melinda Gates Foundation, 47

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DG Murray Trust, Nelson Mandela Children’s Fund and Macsteel. These organisations stand among various members of the global community who are helping to raise funds for the hospital. One of these is the For Kids By Kids campaign, where children around the country have raised more than R100,000 towards the hospital.

The lack of paediatric facilities in the country over the years has led to a dearth of professionals trained in the specialities that will be required in this hospital. The National Skills Fund has donated towards the training of nurses and doctors for the hospital.

To date, nearly 70 bursaries have been awarded, and more will be awarded as the countdown towards the opening of the hospital continues. The training of fellows has also commenced.

YOUR CHANCE TO DONATE The Nelson Mandela Children’s Hospital Trust is raising funds to reach a target of R1 billion to build and equip the hospital, as well as train medical professionals to work in it. To donate towards the building of the Nelson Mandela Children’s Hospital, SMS “GIFT” to 40301 (SMS costs R20. Terms, conditions and administrative costs apply.) Alternatively, visit www. nelsonmandelachildrenshospital.org for more details and to donate.

49

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FEATURE | DELOITTE ON TAX

Economic outlook sets the scene for tax increases The Medium-term Budget Speech was not only realistic, it also offered options for raising revenue to fund government expenditure projects, says NAZRIEN KADER, Deloitte Africa Taxation Services Managing Partner

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n the background of the rising weeklong #feesmustfall claims from university students, the Medium-term Budget Speech was delivered, facing the difficult task of sustaining growth in an economy that is facing significant growth challenges.

As GDP for 2015 fell to a lowerthan-expected 1.5 percent, the Finance Minister looked for alternative options to raise revenue to fund government expenditure projects. Key concerns that emanated from the Medium-

term Budget Speech on 22 October 2015 included rising unemployment, estimated at 25.5 percent for the third quarter of 2015, as well as an increasing wage bill of 10.1 percent that remains unsustainable. The growing demand for basic services has resulted in a R6 billion increase to support rising costs, coupled with a R13 billion increase in grants.

Power constraints, lower commodity prices and lower investor confidence left the Minister with little option but to draw on the contingency reserves, which

are now depleted, and South Africa is faced with a net stabilising debt of 45.7 percent in 2019/20.

With a less than optimistic three-year economic forecast ahead and little room for new spending priorities, Nazrien Kader, Deloitte Africa Taxation Services Managing Partner, says that the Minister will be looking to increase revenue from almost every source of tax available to him. “For the first time, tax was a key feature in the Minister’s Medium-term Budget Speech, and future tax hikes cannot be ruled out in the main Budget Speech in February,” says Kader. “The speech was very realistic and continued to remind us each of our responsibilities as individuals, businesses and government in driving economic growth in South Africa.”

The speech discussed the possibility of reviewing the corporate tax system, mining tax and small business tax.

Increasing mining taxes could be seen as risky, though, with the unease in the mining sector and pressure on commodity prices. South Africa could also see changes to the VAT rate and estate duty.

“I don’t anticipate that we will see an increase in the VAT rate, especially considering that it is a regressive tax, which will impact the poor significantly,” Kader says. “Instead what we may see is an increase in the marginal tax rate from 41 percent as well as the introduction of a carbon tax.”

Draft Carbon Tax Bill released The National Treasury released its Draft Carbon Tax Bill for public comment with a deadline of 15 December 2015. This is 51

FEATURE | DELOITTE ON TAX a clear indication of the government’s intention to introduce carbon tax as a source of revenue. If introduced, the Carbon Tax Bill is aimed at reducing greenhouse gas (GHG) emissions below business-as-usual by 34 percent by 2020 and 42 percent by 2025.

The Bill states that entities will be liable for their fossil fuel combustion emissions, industrial processes and product use emissions as well as their fugitive emissions. The carbon tax is expected to be implemented with complementary measures, which include a reduction in the electricity levy and other measures to recycle revenue.

“The Minister mentioned looking into National Health Insurance (NHI) reform as well as Retirement Funds reform,” says Kader. “He also cited reducing e-tolls, and not abolishing them, for which many South Africans have been calling.”

52

has seen the average income of the top 10 percent of earners widen to 19 times higher than the bottom 10 percent.

Wealth inequality is even worse, with the top 10 percent owning 76 percent of all net wealth and income poverty affecting around 18 percent of the population.

“Several options for tax reforms do exist that increase the average tax rate paid by top income recipients without necessarily raising their marginal rates. These include scaling back on tax deductions, fringe benefits, carried interest, treaty shopping - but these measures to improve tax collection are already being applied, for the most part, in South Africa,” Kader adds.

The best way to increase tax revenue, improve wealth transfer to the poor and reduce the burden of taxation on the small number of taxpayers in South Africa is to have greater enforcement and broaden the tax base, she continues.

As pre-tax income inequality increases, the role of tax policy becomes even more important. “The most important of these measures is broadening the tax base to reduce avoidance opportunities and thereby the elasticity of taxable income,” Kader says.

Base Erosion and Profit Shifting The focus on reducing avoidance opportunities with regards to multinationals is being driven globally by the Organisation for Economic

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Cooperation and Development (OECD), which released its final report under the Base Erosion and Profit Shifting (BEPS) project on 5 October 2015.

The speech highlighted the fact that the government will continue to explore reforms that promote an efficient and progressive tax system, which included dealing effectively with profit shifting and the misuse of transfer pricing.

BEPS is not only a focus for the South African government and likely to feature in the 2015/17 Budget Speech, but it is increasingly occupying the agenda of high profile international bodies, says Kader. Deloitte’s recent Global Multinational Survey found that 52 percent of organisations cited BEPS and OECD legislation as their biggest area of concern.

“There is a need for greater transparency to counter the perception that large business is 'getting away with it’. However, navigating the new global tax environment is becoming riskier and more challenging for multinational enterprises that do not plan properly for all eventualities.

“In conclusion, I think it is fair to say that under the current economic landscape, South Africans should brace themselves for an increase in taxes in the 2016/17 Budget Speech as the Minister looks to sustain growth and prioritise revenue over the next three years,” Kader concludes. <

Focus on wealth tax Another feature of the speech was the possible introduction of a wealth tax.

To date, the Davis Tax Committee has been tasked with investigating wealth taxes and has recommended a review of estate duties, but has not gone so far as to call for another layer of wealth taxes on top of what already exists.

Wealth taxes have come under the spotlight recently following Thomas Piketty’s visit to South Africa, where he urged South Africa to consider an annual wealth tax or a tax on individual net wealth considering that the country has one of the most unequal distributions of income in the world.

Kader says that while it is easy to point fingers at South Africa, the United States, the world’s model of capitalism,

“

For the first time, tax was a key feature in the Minister’s Medium-term Budget Speech, and future tax hikes cannot be ruled out in the main Budget Speech in February

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The Institute for Performance Management is a specialist performance management service provider, established in 2004 to provide a seamlessly 11-Steps to Business Excellence™ integrated methodological approach to consulting, training and automation solution for clients. The Institute is actively pursuing the goal of developing a think-tank for performance planning, monitoring, reporting and evaluation advisory service whereby a true performance management culture can be established in South Africa.

The Vision of The Institute is to Enlightened Africa through renewed governance. Linked to our Vision, the Mission of the Institute is to Plan, develop, implement, monitor, review and report integrated performance management results through SELF (Success, Energy, Leading, Fulfilled).

The objective of The Institute is to plan, develop, implement, monitor and review workable integrated performance management and evaluation results through strategic vision, leveraged executive leadership and, human and organisational capital. The Institute holds to the value of wisdom and harmony.

The company has developed a highly successful approach to planning, monitor, reporting and evaluation that results in overall improved performance as well as enhanced corporate governance. Our Lebelela™ Automated System is designed for the South African market to streamline performance management, decision-making, reporting and employee

assessment functions. Lebelela™ does not require additional infrastructure but only the ability to connect to the Internet. Lebelela™ is results-driven, based on Microsoft Technology.

The Institute has researched, developed and practically applied a range of cutting-edge solutions for government through powerful new technologies and methodologies.

The Institute is committed to changing the performance management and governance outlook in Africa from lacklustre to excellence, through a combination of handson consulting and advisory services, research, ongoing development of methodologies and supporting products, accredited training and leadership development.

The Institute’s team of highly qualified and experienced specialists skilled in both the science and art pertaining to all elements of performance management ensures that the company’s clientele receives professional services of the highest calibre. The Institute is 100% HDI-owned.

As service provider it has been awarded a BBBEE (Broad Based Black Economic Empowerment) rating of 2. The Institute is headquartered in Midrand, Gauteng but operates country-wide.

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Executive Director GJ Rossouw Jv Rensburg | Chief Executive Officer Hector Makhubele www.instituteforpm.co.za | info@instituteforpm.co.za Reg no 2004/013125/07 54

PBF | GLOBAL

2015 South Africa-China Business Summit for SMMEs China: Canton Fair & Shanxi Province

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Province as well as by a representative of the Consulate General of the Peoples Republic of China in Johannesburg.

In addition, a representative of the Gauteng Province gave a presentation on the advantages of doing business in Gauteng.

At the summit, the PBF Chinese Committee was also launched to streamline future cooperation between China and South Africa. The summit was followed by a successful B2B session. <

business summit was held on 26 August 2015 between South African SMMEs and a business delegation from Shanxi Province in China.

The event, which was well attended, consisted of a presentation and promotion of the Canton Fair and a summit that was opened by Daryl Swanepoel, the Convenor of the PBF. Speeches were also made by a representative of Shanxi

His excellence Mr. Yang Peidong, Vice Consul General from General Consulate of PRC in Johannesburg

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PBF Chinese Chapter Committee

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PBF | GLOBAL

PBF trade delegation to Changchun and Taiyuan, China China: Changchun & Taiyuan

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Vice Governor, Shanxi Province, Wang Yisin (circled)

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the keynote session. He focused on the need for African economies to transfer from raw material exporters to manufacturers and beneficiators.

He emphasised that African leaders were determined to transform their economies along these lines and that countries such as China needed to think strategically along these lines.

He said that enterprises would do well to convert from exporters to Africa to investors in Africa if they wished to remain relevant in Africa in the longer term. He also discussed the EY Africa Attractiveness Survey 'Doing Business in Africa 2015', which painted an encouraging picture for potential investment on the continent.

On the morning of Tuesday, 1 September 2015, the delegation visited the China-Northeast Asia Expo. In the afternoon they attended a businessto-business matchmaking session and that evening they attended a dinner

hosted by Ding Shengxing, the Deputy Director General of the Foreign Affairs Office of the Jilin Province.

On Wednesday, 2 September, they travelled to Taiyuan in the Shanxi Province. On arrival, the delegation was whisked off to enjoy a traditional lunch, followed by a visit to the TISCO Stainless Steel Industrial Park. Later in the afternoon they attended a business seminar and business-to-business session hosted by the Shanxi Provinceâ&#x20AC;&#x2122;s Department of Commerce. In the evening they enjoyed a dinner reception hosted by the Director General of the Department, Sun Xiaomin.

PBF Convenor Daryl Swanepoel, along with representatives of the delegation, also met with the Shanxi Provinceâ&#x20AC;&#x2122;s Vice Governor, Wang Yisin, who has been a driving force for strengthening economic relations between the Shanxi Province and South Africa. <

he PBF led a trade delegation to the cities of Changchun and Taiyuan in China between 29 August and 4 September 2015. Around 20 companies enlisted for the visit.

In Changchun the delegation attended the 4th Global Economic Leaders Summit, which was held at the Shangri-La Hotel in the city centre.

The programme was filled with highpowered speakers from around the world and discussions covered three themes, namely 'Emerging Industries', 'Cultural Industry' and 'Technology Innovation'. The keynote session was held under the banner of 'Promoting Global Science and Technology Innovation and International Collaboration on Production Capacity for Economic Transition and Upgradation'. (For full details on the summit, visit www.gels.apceo.com).

PBF Convenor Daryl Swanepoel also addressed the summit during

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Trade delegation to New Delhi, India New Delhi, India

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he PBF led a trade delegation to New Delhi, India between 19 and 22 November 2015. The visit included a business seminar and a business-to-business session, a chance to spend time at the India International Trade Fair and sightseeing to explore the magnificent Taj Mahal and Agra Fort.

The South Africa/India Business Seminar and Businessto-Business Session was held at the Sheraton Hotel in New

EB Rajesh (circled left) and Dr Sunil Dagar (circled right) of the CII

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Delhi on Friday, 20 November 2015. The event was coorganised by the PBF and Confederation of Indian Industry (CII), with whom the PBF has a cooperation agreement. It was well attended by Indian enterprises.

Speakers from the South African side included the Minister Plenipotentiary of the South African Embassy in New Delhi, MW Mogale, and PBF Convenor, Daryl Swanepoel, who spoke on the topic of doing business in South Africa and explained about the

PBF | GLOBAL

MW Mogale, Minister Plenipotentiary of the South African Embassy

<

South African business and investment environment. CII speakers included Dr Sunil Dagar and EB Rajesh, International Regional Director of Africa.

On Saturday, 21 November the trade delegation attended the India International Trade Fair; they visited the South African pavilion, which hosted around 30 South African craft enterprises. The exhibitors reported brisk business and keen interest in their products.

On Sunday, 22 November, the delegation enjoyed exploring the worldfamous Taj Mahal and Agra Fort, a most memorable end to their Indian visit.

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Delegation to Istanbul and Ankara, Turkey Turkey: Istanbul & Ankara

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delegation of some 19 South African companies, accompanied by the Deputy Minister of Small Business Development, Hon Elizabeth Thabethe, visited Istanbul and Ankara, Turkey, from 26 to 31 July 2015.

After arriving early on the morning of 27 July in Istanbul, the delegation settled into their hotel and then enjoyed a sightseeing tour of this ancient city that straddles both continents of Europe and Asia. That evening the delegation was hosted at a dinner cruise on the famous Bosphorus, the strait that forms part of the boundary between Europe 62

and Asia. Together, the Bosphorus, the Sea of Marmara and the Dardanelles Strait to the south-west form the Turkish Straits. The Bosphorus is the worldâ&#x20AC;&#x2122;s narrowest strait and is used for international navigation. It connects the Black Sea with the Sea of Marmara (which is connected by the Dardanelles to the Aegean Sea, and thereby to the Mediterranean Sea.) SA/Turkey Business Forum The following day, 28 July, was devoted to a meeting of South African and Turkish businesses at a forum arranged

and hosted by the Foreign Economic Relations Board of Turkey (DEIK). The event was held in the Intercontinental Hotel in Istanbul and was attended by over 100 guests. It began with an introductory video on business opportunities in Turkey, presented by DEIK. This was followed by a video on South Africa.

The meeting was addressed in turn by the DEIK coordinator, the Chairman of Africa Business Councils and the Chair of the Turkey/South Africa Business Council, Mr Tamir Taskin. The South African Ambassador to Turkey, HE Vika

Ankara On Thursday 30 July, the delegation travelled to Turkey’s capital, Ankara, to meet with the Small and Medium Enterprises Development Organization (KOSGEB). They were briefed on KOSGEB’s functions, goals and objectives and were able to interact

in a lively Q&A session about the organisation’s work and how it relates to South Africa.

They then visited Ankara’s Industrial Zone in Sincar, and met with the President of the Chamber of Industry of the Industrial Zone, Mr Nurettin Ozdebir.

The Chamber made a presentation, and Deputy Minister Thabethe thanked the Chair of the Chamber for meeting with the delegation.

She noted the great potential for cooperation between Turkey and South Africa and extended an invitation to Mr Ozdebir to visit here.

The delegation continued to the KOSGEB Sincan Directorate offices and then visited three companies that operate in the industrial zone, namely Hidromek (manufactures heavy machinery), Kucukpazarli Aviation (manufactures steel for the aerospace and aviation industries) and Ulusoy Electrics (manufactures medium voltage electricity distribution networks and facilities).

The delegation returned to South Africa on Friday 31 July after a most successful visit filled with prospects and potential. It seems likely that they will plan a return visit in the future. <

Site visits The following day, Wednesday 29 July, was devoted to site visits of various bodies and institutions.

The delegation visited the Istanbul Development Zone at the Technopark, Istanbul, located in Pendik, and explored the sophisticated zone, which offers new, start-up and incubation facilities to young entrepreneurs, many of whom are in the IT and communications fields. They then enjoyed lunch at the Technopark and enjoyed interacting in the stimulating young business environment.

Next stop was the showroom/ street of one of the world’s largest prefabricated house building companies, VEFA, which comprises five divisions. The delegation viewed some of the houses built by the company and also paid a visit to the VEKON factory outside Istanbul, which manufactures prefabricated houses and schools, clinics and facilities, then packages them and ships them worldwide.

PBF | GLOBAL

Khumalo, followed up with an address and then the South African Deputy Minister of Small Business Development, Hon Elizabeth Thabethe, addressed the forum. Deputy Minister Thabethe extended an invitation to Deputy Minister Yildirim, Deputy Minister of the Economy of Turkey, to visit South Africa.

The Deputy Minister of the Economy of Turkey, Hon Adnan Yildirim then addressed the forum.

Presentations were delivered by the Regional Director of Africa, the Middle and Near East, Mr Murat Buyukerk, as well as by Mr Taskin and by the Trade Finance Manager of Turkish Eximbank, Mr Firat Dursun.

During the DEIK luncheon, targeted meetings were held between the Turkish and South African business representatives. The delegation also enjoyed a visit to the Nelson Mandela exhibition that had been put together by the South African Embassy in Turkey. It was on display in a prominent gallery in Istanbul’s Taksim district.

SA Deputy Minister for Small Business Development, Elizabeth Thabethe (centre left) and the Turkish Deputy Minister of the Economy, Mr Adnan Yildirium (centre right)

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PBF | GLOBAL PROFILE

Meet the new German Ambassador Introducing WALTER LINDNER, the new German Ambassador to South Africa, Lesotho and Swaziland

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PBF | GLOBAL PROFILE

W

acclaim. Another memorable act was his introduction of the Kikwetu Music Festival, that attracts Kenya’s most recognised pop artists to this day. As a graduate Jazz musician himself with several CDs on the market, Lindner is very passionate about music and African music in particular. He realises that music and sports are the easiest ways to reach and touch people throughout Africa.

“

Both countries are already strong partners with close economic and political ties. And in many ways, Germany and South Africa are natural partners in globalisation

”

During his tenure as Director for Africa at the German Foreign Office (2010-2012) and Special Representative of Germany for the Ebola Crisis (October 2014- June 2015), Lindner gained even more profound knowledge about Africa. Having travelled to over 40 African nations, he now has a wide network of valuable contacts throughout the continent.

With this broad range of experience, Lindner will endeavour to contribute and make the most out of his three years of residence in

Pretoria. The German diplomat is very keen on enhancing and using South African and German relations to their full potential.

Both countries are already strong partners with close economic and political ties.

And in many ways, Germany and South Africa are natural partners in globalisation, Lindner believes.

Given their economic and political weight, both countries carry a special responsibility for their home regions.

South Africa and Germany are both committed democrats and proven defenders of human rights as well as international law. And both countries have open economies that are deeply intertwined with global markets.

To Lindner’s mind, dealing with challenges like terrorism, global warming or the challenges of migration is only possible with strong, reliable partners and their intensive and consistent cooperation.

To achieve this, it will be necessary to focus on concrete action rather than lofty declaration, he says. A true partnership means solving problems together instead of talking about each other, he adds.

Now that he has spent three months in the country, Lindner is already in love with its beauty and the openness of its people. He has shared some of his pictures on his personal Twitter account.

As a senior German Ambassador you always have to be prepared for a phone call from Chancellor Merkel asking you to come back to Germany for a special assignment, Lindner says.

Right now, he is hoping the phone will not ring. <

hen people meet the new German Ambassador to South Africa, Lesotho and Swaziland for the very first time, most of them are surprised. With his noticeable tall stature, his long dark hair tied back in a ponytail and his mostly inconspicuous clothing, Mr. Walter Lindner does not match the prevalent cliché of a wellestablished diplomat. But it is not only his physical appearance that distinguishes the graduate lawyer from other diplomats. His clear language and his unconventional style of handling things are the reasons he is so highly thought of in the diplomatic sphere.

Mr. Lindner is what one would call a 'hands-on' diplomat. Instead of spending most of his time in the office or at diplomatic events, he prefers to explore and learn as much about the country and its people as he can.

On his first day in office, he visited Soweto to join the German Embassy’s Mandela Day activities. Visits to German development cooperation projects in Mamelodi East and Khayelitsha are more important to him than attending a cocktail reception in the capital.

The Ambassador believes it is vital to experience the dynamics of the country firsthand. This philosphy derives from a long-standing passion for and a relationship with Germany and the African continent.

His first Ambassadorial posting was in Nairobi, Kenya in 2006. During his tenure there, his dedication and commitment as an advisor of the new and inexperienced coalition government brought him much

65

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BUSINESS SPOTLIGHT | BBD

Combining intelligence Spotlight on enterprising software company BBD

B

BD was started over 30 years ago and has over the years been building the systems and software behind some of South Africa’s biggest and most technologically sophisticated businesses. Started by three tech enthusiasts, the team has grown to more than 500 digital specialists.

BBD’s footprint extends to Pretoria, Johannesburg and Cape Town, and while it is very much a South African business, it includes offices in Bulgaria and India as well.

BBD has an enviable track record of working alongside its clients, most of whom are major, blue-chip corporate entities, to create tailormade, sustainable software solutions that have a tangible impact on the companies where they’ve been implemented, and continue to show measurable return on investment years after deployment.

Whether they’re getting old, legacy systems and databases to work with brand new mobile apps, building

payment or process systems, or just finding a simpler way to digitise a particularly onerous administrative function, no software or systems related challenge is ever too complex or too challenging. The company has worked with industry leaders in insurance, banking, telecommunications and the media, and has also developed a number of significant software solutions for the public sector.

Combined intelligence BBD has always approached every new business and project with the aim of achieving 'Combined Intelligence'.

This mantra indicates a culture of continuous learning and ongoing collaboration, which results in the best possible solutions being developed for its clients. The company’s team of analysts and experts investigates every business thoroughly, identifying opportunities to improve and upgrade its digital processes.

“Put simply, if something isn’t right

for a business, we won’t recommend it,” says CEO Peter Searle. “Everything we build is bespoke; everything we suggest is based on research and insight into that specific business. A big part of what we offer is face-to-face consultation. We believe in working closely with our clients. The better we understand their business, the better we can build solutions for it.”

Having over 500 software specialists in-house means that BBD is able to offer myriad solutions for businesses of any size, in any industry and with any kind of existing legacy systems.

Not only does BBD offer full-scale project development, but it is also well versed in the art of modular upgrades and integration - adding new systems, features and processes to a company’s existing IT infrastructure. “It’s always exciting when we get the opportunity to build an app, a system or a website from the ground up,” says Searle.

“We love being involved from day one. But the reality is that many organisations have had systems in 67

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BUSINESS SPOTLIGHT | BBD

place and years’ worth of data that can’t just simply be 'switched over'.”

At the same time, the pressure is on businesses to constantly adapt, innovate and improve to keep up to date with rapidly changing technology and an increasingly tech-savvy market.

Software solutions for public and private sectors BBD’s initial focus was on the private sector and it has built up a solid reputation in the banking, insurance, telecommunications and retail sectors. Specialist solutions in capital markets and providing development services to banks has seen its banking clients expand to include all the major banks as well as many of the second tier banks. Banking clients include ABSA, Standard Bank, Nedbank, FNB, RMB, Investec and Sasfin.

Insurance companies such as Discovery, Sanlam, Santam, Old Mutual, Hollard, King Price and others are also clients. In the telco sector, BBD works with Vodacom and in the past it also provided services to Nashua Mobile and other telco businesses.

BBD has a strong understanding of these different business verticals and combines a solid business focus with technology solutions that are designed to enable the business strategy.

For more than a decade the company has also provided software development, maintenance and support and mobile application development services to the public sector.

BBD has been a technology modernisation partner for SARS for over eight years and has worked with it to deliver a world-class modernisation programme. This has seen an improvement and rejuvenation in various legacy systems. It has managed to assist SARS to continue modernising its technology. BBD also delivers value through the Asset & Liabilities System that manages money market, foreign market, domestic and retail bond investments issued by the National Treasury.

Working with its strategic partners with knowledge of the public sector, the company is delivering projects of significant business value at the IEC and the South African Reserve Bank (SARB).

BBD was also chosen by the Michael & Susan Dell Foundation (MSDF) to develop a dashboard system for the Department of Basic Education (DBE).

This involves improving data and reporting around learner performance to help education officials at every level make informed data driven decisions that can ultimately lead to educational outcomes for South African school learners. The Data Driven Districts Dashboard is a highly intuitive dashboard that displays appropriate education-related information to education officials.

Investing in future software skills BBD is committed to providing opportunities for students and professionals looking to make a difference and work on exciting projects that are transforming the way corporate South Africa does business on the world stage.

Every year, BBD hires skilled graduates from all over the country to join the team as part of the firm’s Graduate Programme. This offers them the opportunity to gain invaluable experience at South Africa’s largest and longest standing 69

BUSINESS SPOTLIGHT | BBD

custom software development company and find their niche in a fast-paced industry. In turn, they provide BBD with fresh new ideas, innovative thinking and great skills, plus, of course, lots of young energy.

Obviously, achieving a tertiary education is no easy feat, which is why BBD’s Bursary Programme has been put in place to assist with some of the costs associated with talented students’ university studies. The Bursary Programme helps students cover tuition fees, prescribed books, accommodation and meals so that they can focus on achieving their goals without having to worry about making ends meet.

The BBD Learnership Programme is another avenue for youth who want to take their first steps in the growing local software arena. This 12-month workbased learning programme combines a structured learning component with practical work experience. Every year, more than 20 incumbents are paid a minimum monthly stipend during the programme and upon completion, they receive a nationally recognised IT qualification.

BBD’s investment in the future of South Africa’s prospective software developers doesn’t stop there. The company recently announced a significant founder sponsorship of a major software development skills incubator - 'WeThinkCode', which aims to train up world-class software engineers. It is based on a revolutionary concept developed in France that looks at coding as a standardised skill set instead of a niche one. Coding is essentially a second language that our devices use to communicate with one another and that we should be using to, in turn, communicate with them.

“BBD knows that the aptitude to be a programmer is not necessarily aligned to formal computer science training, hence WeThinkCode’s unique and disruptive approach to identifying

”

and training talent is, for us, a compelling proposition to support our efforts to develop programming as a key skill in South Africa,” says Searle.

Looking to South Africa’s future Despite a packed schedule and a client list that seems to grow every week, BBD is committed to growing alongside the South African economy.

“The way we see it,” says Searle, “is that what’s good for the South African corporate and public sector is what’s good for us. This is what keeps us up at night, thinking of pro-active ways to keep our clients and our country globally competitive.” BBD plans to continue to grow and expand, possibly into territories beyond South Africa, but is determined to never forget its roots. “South Africa is home,” Searle says, “It’s our duty to give back to the country that has helped us to do what we love for 30 years. We’re hoping to be bigger and better than ever in 30 more years!”

Social initiatives In line with this, BBD has actively supported a number of social initiatives over the years, including the Student Sponsorship Programme that provides high school scholarships to the best Gauteng high schools for low income, academically distinguished learners who exhibit leadership potential.

Another is the Khuphulanani Training Institute, which aims to enhance and create opportunities for employed and unemployed individuals so that South

Africa can become a hub of information and communications technology (ICT) excellence. BBD has also provided support to Girls and Boys Town and set up an IT infrastructure for the young people to give them a second chance.

Business development “While social support is essential and an absolute priority for any business with heart, it is also critical that we support small South African entrepreneurs,” Searle says. BBD has supported various South African start-up businesses over the years, including Mabu Technologies, MVT and RamLink.

Since the mid 1990s, BBD has provided shared services support, development support and high level business support to Mabu Mamadi to build his core consulting business. Mabu Consulting has gone from strength to strength and is now a force to be reckoned with, proving consulting services in both the public and private sector. Mabu is an inspiring entrepreneur who is active in a number of businesses. BBD has engaged with RamLink, a small black women-owned consultancy providing Pastel Accounting Software support and hardware and software supplies. It has assisted them in expanding their hardware and software supply services.

More recently, BBD supported Lehlohonolo Nthako ('Hloni') in building MVT, a new business with an initial product offering and service based on identity management.

MVT Technologies is a leading supplier of biometrics technology to Africa. Using the fingerprint, which is absolutely unique to every human being, MVT is able to create impenetrable identity-based security systems that can be easily integrated into companies, events and daily transactions. BBD is very excited about the prospects of working with Hloni and sees a bright future for this young energetic entrepreneur. <

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“

What’s good for the South African corporate and public sector is what’s good for us. This is what keeps us up at night, thinking of proactive ways to keep our clients and our country globally competitive

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INFRASTRUCTURE

Independent fuel storage for Cape Town Burgan Cape Terminals breaks ground on its independent fuel storage facility

State Secretary for Economic Affairs and Minister of Agriculture, Mr Martijn van Dam from the Netherlands (centre), DG of Trade & Industry, Mr Lionel October (right), and Global Head of Strategy for VTTI, Mr Rubel Yilmaz unveil the plaque

B

urgan Cape Terminals officially broke ground for the construction of a new independent fuel storage and distribution facility in the port of Cape Town at the end of November 2015. The development, which will see a R650 million investment in the first two years, is a joint venture between Thebe Investment Corporation, broad-based BEE company Jicaro and Rotterdambased international terminal operator VTTI. This has been designated a strategic project under the South

African government’s Operation Phakisa, and is the first project under this important programme that has been implemented.

“The facility will ensure security of fuel supply by adding greater flexibility and choice to a strained provincial storage market,” said Muziwandile Mseleku, CEO of Burgan Cape Terminals. “It will also play an important role in opening up a previously closed market for emerging black-owned independent

fuel suppliers.”

Mseleku believes that Burgan Cape Terminals, precisely because of its stature as an independent fuel storage facility, has been successful in attracting both commercial oil majors such as Shell, as well as those companies that have experience in the sector but that have not previously been able to enter the storage and distribution market because of the lack of independent storage facilities in South Africa.

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INFRASTRUCTURE

“One of the companies that is renting space in our terminal, Gulfstream Energy, is a 100 percent blackwomen-owned entity. Having access to fuel storage terminals puts this experienced young company in the same league as the oil majors, and that is indeed exciting for South Africa,” he said.

Speaking at the official groundbreaking ceremony in Cape Town, Vusi Khanyile, Executive Chairman of Thebe Investment Corporation, said that “South Africa is likely to be energy constrained for many years to come, so the more contingencies we put in place to address this energy challenge the better. Secure and plentiful energy means a growing economy and much-needed jobs. We are proud to be part of this exciting development.”

Burgan Cape Terminals was awarded a 20-year lease by Transnet for the development of the fuel storage facility. The terminal is due to be completed in 18 months.

“

South Africa is likely to be energy constrained for many years, so the more contingencies we put in place to address this energy challenge the better

”

It is anticipated that the project’s construction phase will create approximately 130 contract jobs, with an average duration of 22 months.

Approximately 20 operational jobs will have to be created once this facility is fully operational.

Operational expenditure in the first few years of production has

been estimated at approximately R40 million and will increase in line with all throughput.

About the facility The fuel storage facility in Cape Town Harbour will be multipurpose; it will be used for the storage and distribution of both locally produced and imported fuels.

Companies will 'rent' space from Burgan for storage of their fuel product. Burgan has already signed long-term (10-year) contracts with oil companies, who jointly aim to throughput up to 805,000m3 every year.

This includes the contract with Gulfstream Energy, which signed a three-year throughput agreement to store 120 million litres per annum with Burgan Cape Terminals.

Shell, which is also an anchor tenant, has extended the energy major’s global relationship with VT TI and its longstanding partnership with Thebe.

Burgan’s state-of-the-art truck-loading facility will allow for efficient and swift distribution to end users with a very limited impact on the surroundings. <

Economic impact The terminal will bring additional competition, supply security, as well

as improved oil infrastructure and flexibility in oil supply. The resulting cost optimisation will have a structural net economic benefit to the Cape.

State Secretary for Economic Affairs and Minister of Agriculture from The Netherlands, Mr Martijn van Dam (right) and DG of Trade & Industry, Mr Lionel October

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T

he Progressive Business Forum hosted an incoming China Council for the Promotion of International Trade delegation on 2 December 2015. The delegation was in Johannesburg to attend the Forum for China Africa Cooperation, which was held between 4 and 6 December.

The keynote speaker at the event was the Hon Elizabeth Thabethe, Deputy Minister for Small Business Development, who encouraged the Chinese enterprises to invest in South Africa. She emphasised the beneficiation of mineral resources prior to export, and discussed how investment creates jobs. She dealt extensively with investment incentives, South Africaâ&#x20AC;&#x2122;s policy positioning, access to Africa and the business environment.

In his speech, the Director General of the China Council

for the Promotion of International Trade, Lin Shunjie, spoke about Chinaâ&#x20AC;&#x2122;s approach to investment in Africa. He said that both countries needed to ensure mutual benefit. China was set on creating balanced bilateral trade, the transfer of technology and skills, and productive investment which led to job creation. He emphasised the desire to move Chinese manufacturing capacity to Africa.

The Convenor of the PBF, Daryl Swanepoel, also spoke.

He emphasised the advantages of investing in South Africa, and also shared the findings of the EY Africa Attractiveness Report 2015, which confirms the positive outlook of businesses investing in Africa.

The formal proceedings were followed by an energetic B2B session and a networking dinner.

PBF NETWORKING | EVENTS

PBF hosts a business seminar on the eve of the Forum for China Africa Cooperation, Johannesburg

Lin Shunjie, Director General of the CCPIT and Elizabeth Thabethe, Deputy Minister for Small Business Development

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PBF NETWORKING | EVENTS

Meeting between the PBF and the China Council for the Promotion of International Trade (CCPIT)

T

he Convenor of the PBF, Daryl Swanepoel, and the Chairman of the CCPIT, Jiang Zengwei, held a bilateral meeting in Johannesburg on 3 December 2015 to, among other issues, discuss their cooperation agreement, which was entered into in 2011. Both parties agreed that they were satisfied with each otherâ&#x20AC;&#x2122;s performance under the agreement and, in fact, expressed the desire to deepen the working relationship.

The PBF and the CCPIT will further develop their cooperation platform, which comprises trade exchanges, the sharing of best practices, enterprise linkages, information dissemination and more. The CCPIT recently developed an extensive e-trade and investment platform and has invited PBF enterprises to participate in this e-commerce initiative.

The PBF and CCPIT intend following up the bilateral meeting with a planning workshop in the first quarter of 2016.

Jiang Zengwei, Chairman of the CCPIT (centre)

Investec Bank hosts the Chairman of the China Council for the Promotion of International Trade, Johannesburg

I

Solomon, Global Head of Financial Institutions, used the opportunity to strengthen its network in China. It also made an extensive presentation of the economic outlook for South Africa.

At the meeting, CCPIT confirmed that it would actively encourage Chinese enterprises to set up business in South Africa, and believed that there was much scope and opportunity, particularly in the manufacturing sector. <

nvestec Bank hosted the Chairman of the China Council for the Promotion of International Trade (CCPIT), Jiang Zengwei, who was in Johannesburg to attend the Forum on China-Africa Cooperation held on 4-6 December 2015.

CCPIT works closely with the Progressive Business Forum in promoting mutually beneficial trade and investment between South Africa and China.

Investec Bank, whose delegation was led by Darren

Darryn Solomon, Global Head, Financial Institutions , Investec (right)

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Mpumalanga Head Office Unit No.4 11 Collfin House Ferreira Street Nelspruit 1200 P O Box 30047 Steiltes Nelspruit 1213 Tel 013 753 2586 013 755 4480 013 753 2587 Fax 013 753 2569 Email solutions@bakhusele.co.za

EDWIN MKHABELA

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YOUTH EMPLOYMENT OPPORTUNITY In support of Government’s focus onfocus creating employment for young seekers from Jhb. and surrounding areas, areas, Eric In support of Government’s on creating employment forwork young work seekers from Jhb and surrounding Eric Shoe Manufacturing invites applicants between the ages of 18 to 29 to apply. Training will be provided for Shoe Manufacturing invites applicants between the ages of 18 to 29 to apply. Training will be provided for successful successful applicants in making Italian shoes. Interested applicants should contact Eric Asante Obeng at 011 394 1505. applicants in making Italian shoes. Interested applicants should contact Eric Asante Obeng at 011 394 1505. Please Please forward CV’s to esmck2@yahoo.com Web: www.esmck2.co.za Member of the PBF. forward CV’s to esmck2@gmail.com Web:www.esmck2.co.za Member of the PBF.

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PBF NETWORKING | EVENTS

Durban ministerial briefing, Coastlands Hotel Umhlanga, 24 November 2015

I

Municipality, Cllr Logie Naidoo, who briefed the gathering on the economic developments that are taking place in the wider Durban area.

A lively Q&A session followed Deputy Minister Masina and Cllr Naidooâ&#x20AC;&#x2122;s input, after which members of the enterprises mingled with the dignitaries over supper. <

n November, the PBF hosted the Deputy Minister of Trade and Industry, Mzwandile Masina, at a cocktail briefing for PBF enterprises in Durban. The focus of his speech was on economic security, the fight against corruption and economic empowerment.

Also speaking at the event was Speaker of Ethekwini

Cllr Logie Naidoo, Speaker of Ethekwini Municipality

Deputy Minister of Trade and Industry, Mzwandile Masina

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PBF NETWORKING | EVENTS

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OUR SERVICES Civil Works and Construction Construction of Substations for Eskom Road maintenance General Construction Works Vegetation Management / Bush Clearing Electrical Works General Maintence

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O

n 22 July 2015 the PBF facilitated the attendance of the Deputy Minister of Small Business Development, Hon Elizabeth Thabethe, at the Direct Selling Association (DSA) Annual Awards Luncheon held in Johannesburg. The Deputy Minister addressed the 330plus delegates who attended the awards luncheon. The audience, which included top achieving independent direct sellers and head office personnel from DSA members across South Africa, applauded the Deputy Minister’s comment, “I am told this is a room filled with people

who are making a positive difference in the lives of others.”

The Ministry of Small Business Development views the Direct Selling Association (DSA) as an important partner in achieving its mandate. Calling the direct selling industry an industry that gives birth to entrepreneurs and makes a critical contribution to the future of our country, Deputy Minister Thabethe said that a partnership with the DSA was important to the ministry.

“I can already see many opportunities for collaboration between us and your association in the realisation of achieving

our mandate,” she said.

The Deputy Minister praised the association’s members for the contribution they had made and continue to make to South Africa.

“The direct selling industry does more than just provide entrepreneurial and income opportunities to over one million South Africans; it also encourages an environment of learning, personal development and business building,” she said. This is something the country is in desperate need of, she added.

Thabethe explained that the task of the 12-month-old Ministry of Small

PBF NETWORKING | EVENTS

Direct Selling Association (DSA) Annual Awards Luncheon

Deputy Minister Elizabeth Thabethe delivered the keynote address at the DSA Luncheon

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PBF NETWORKING | EVENTS

to contribute to radical economic transformation.

She said the DSA was an important partner for the ministry if it were able to achieve this aim, as direct selling has the potential to significantly impact on unemployment levels in South Africa. “There can be no question that the direct selling industry assists in creating income earning opportunities for anyone who has the desire and is prepared to work. There are no barriers of age, education, colour, creed or gender,” she continued.

Deputy Minister Thabethe also praised the theme of the DSA Awards Luncheon event – 'Renewal, Transformation and Innovation'.

“It speaks to me of unleashing the potential of the people of South Africa,” she said. “Embrace your training, work hard, enable people and be prepared to work. As long as you have the spirit to change your life, self-motivation is the only barrier.

Step away from the confines of your circumstances. Grasp the opportunities presented.” <

86

Business Development is to promote and support small businesses. “The creation of this ministry is proof of the government’s resolve to grow this sector of the economy. Our goal is to create an environment that supports and promotes this.”

The ministry’s mandate, she explained, is to lead an integrated approach to the promotion and development of small businesses and co-operatives through a focus on the economic and legislative drivers that stimulate entrepreneurship

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Fax: +27 (0) 86 561 6481 E-mail: tshepisom@sisimogroup.co.za admin@sisimogroup.co.za Johannesburg 42 & 44 Dudley Road (corner Bolton Road), Parkwood / Rosebank, Johannesburg, Gauteng P O Box 52704, Saxonwold, Johannesburg, 2132

Tel: +27 11 447 4136 Fax: +27 11 447 5609 Polokwane No. 42 Hoog Street Polokwane 0699 P.O.Box 829 Fauna Park 0787 Tel: 015 295 2073 Fax: 015 291 1145

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2015/12/07 4:00 PM

FEATURE

Focus on HIV/AIDS Mr DARYL SWANEPOEL, Convenor of the PBF, on South Africa’s fight against HIV/AIDS during the PBF India trade mission to Delhi in November 2015

W

hile major advances have been made in the fight against HIV/ AIDS, the disease continues to remain one of the world’s most significant public health challenges, with South Africa bearing the biggest brunt of the disease. South Africa has the largest HIV epidemic, with 6.8 million people infected with the HI virus. As per the Stats SA report (February 2015), HIV moved from being ranked the sixth biggest killer in South Africa in 2012 to being the third biggest killer in 2013. An increase in the number of deaths due to HIV was reported by three provinces: Western Cape, KwaZulu-Natal and Northern Cape.

The challenge, and the key to winning the battle against HIV/AIDS, is threefold: • Identify those infected by encouraging regular HIV testing, supported by counselling; • Treat those already infected by providing access to antiretroviral (ARV) treatment; and • Prevent new infections through continuous education, engagement and advocacy at all levels.

South Africa’s HIV/AIDS Programme South Africa recognised the challenge and acted swiftly, with the largest number of people (3.2 million) on ARV

treatment in the world. According to the Joint United Nations Programme on HIV and AIDS’ latest AIDS report (November 2015), 1.3 million lives have been saved over the past two decades.

Life expectancy has increased from 52 years in 2004 to just over 61 years in 2014 and mother-to-child transmissions have also been reduced.

The challenge ahead In an effort to end the AIDS epidemic by 2030, UNAIDS launched its 9090-90 targets last year (this has to be reached by 2020). The targets include having 90 percent of people living with HIV knowing their status, 90 percent 89

FEATURE of HIV-positive people on treatment and 90 percent of people on treatment with a suppressed viral load (viral loads low enough for HIV-positive people’s immune systems to remain strong and for them to stop being infectious).

South Africa would have to substantially increase its treatment coverage in the next five years to reach these targets.

To achieve the 90-90-90 targets, Nova Genesis Healthcare, a South African pharmaceutical company, created specifically in support of South Africa’s HIV/AIDS Programme, identified the following focus areas: • Local manufacture of active pharmaceutical ingredients (APIs) and ARVs for South Africans by South Africans.

• Guaranteed continuous monthly supply of ARVs (fixed-dose triple therapy medication).

• Centralised electronic monitoring systems for both stock control and for forecasting.

• Dedicated courier pharmacy services and auditable systems for delivery of medications to treatment clinics and collection points.

• Focused campaigns promoting confidential regular testing without discrimination.

• Tailor-made HIV education and awareness offerings (one size doesn’t fit all): - HIV education and awareness and wellness programmes for scholars.

- HIV education and awareness plus wellness programmes for educators.

- HIV education and awareness and wellness programmes for health care workers.

- HIV clinical training to upskill and equip staff with HIV clinical management skills.

- Management training to upskill community and traditional leaders.

Local production of ARVs ARV production is highly regulated, with the most costly and complex component being the production of APIs. India has emerged as a world leader in API production and plays a vital role in driving down the cost of HIV treatment through its supply of generic drugs. Nova Genesis Healthcare 90

FEATURE

“

We need to spread the word about prevention and encouraging all sexually active South Africans to use condoms. We need to encourage people to test for HIV and TB and ensure that all those who need treatment receive it and remain on treatment

has been screening various potential production sources for local supply and distribution to ARV clinics and accredited health care facilities.

During the PBF India trade mission to Delhi in November 2015, various pharmaceutical companies were engaged and site visits to production facilities conducted. Some companies are currently producing ARVs for other countries and almost all have a South African presence, but are producing other drugs for the South African private sector.

RISE

ACT

<

Towards an HIV-free generation The 1st of December 2015 marked World AIDS Day with the theme:

”

'Rise. Act. Protect'.

Deputy President Cyril Ramaphosa, who is also the Chair of the South African National AIDS Council, has urged South Africans to know their HIV status in order to achieve an AIDS-free South African generation.

“We need to spread the word about prevention and encouraging all sexually active South Africans to use condoms.

We need to encourage people to test for HIV and TB. “We need to ensure that all those who need treatment receive treatment and that they remain on treatment,” said the Deputy President.

Government is encouraged by the actions taken by South Africans from

all walks of life over many years to work towards achieving an AIDS-free generation, the Deputy President added.

“We have acted in various ways - big and small - to spread information, to fight stigma and to promote healthy lifestyles all round.

“We have made protection our number one priority, from classrooms to sports fields, from the factory floor to our homes, from our bedrooms to our boardrooms and all corners of our society,” he continued.

Deputy President Cyril Ramaphosa said the nation must rise to this challenge with the determination that “we can succeed”.

“As a people and as individuals, we must act to inform, support and encourage. No action is too small. No contribution is wasted.

“We must protect ourselves and those who are nearest to us. We must protect the vulnerable. We must combat stigma and create an environment in which all can feel safe and comfortable to be tested and be treated,” Deputy President Cyril Ramaphosa concluded.

PROTECT

Be aware of the needs of your community and what is going on in your country

Now that you know what the needs are and how your help can make a difference, do it

Promote preventative behaviours and protect people living with HIV

Have consciousness and realisation

Be an advocate

Show compassion to others

Start with useful health knowledge and a positive attitude

Perform. Be involved

Be kind and caring to you

Understand you need to be part of a network

Accomplish things

Eat healthy foods Exercise

Advance! Progress! Improve!

Every contribution helps

Rest

A call to awaken

Do something!

Be safe. Keep others safe.

TOWARDS AN HIV-FREE GENERATION: 'RISE. ACT. PROTECT' Our country is moving in the right direction, but we are still far from an AIDS-free generation. We have to keep doing the work. Government cannot do it all on its own. We must unite behind the goal of a healthy life for all. We need to work together. We must act responsibly. Every citizen has the power to end the epidemic. An HIV-free generation needs individual and collective action.

I rise. I act. I protect.

We rise. We act. We protect.

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South Africa’s official legacy project for the Durban 2022 XXII Commonwealth Games – Nation of Champions – fits the bill for securing future employment opportunities at home and abroad

FEATURE | COMMONWEALTH GAMES

Creating the employers of tomorrow

“The ambition and intended impact of the Nation of Champions initiative is strongly aligned to the vision and values of the Commonwealth Games Federation. Through the power of sport, events like the Durban 2022 Commonwealth Games grant all citizens the opportunity to be inspired and aware of their ambitions, while creating a call for advocacy and action in order to build more peaceful, sustainable and prosperous communities across their city, nation, throughout the Commonwealth and beyond. Nation of Champions is about connecting young citizens to beneficial life changing opportunities supported by the public, private and third sector.” (David Grevemberg, CEO, Commonwealth Games Federation).

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FEATURE | COMMONWEALTH GAMES

S

Generating a minimum of 100,000 jobs in South Africa The Nation of Champions Legacy Project is implemented at a 'programme' level with a number of individual projects/initiatives under it, all aimed at achieving and addressing the 94

“

Let us commit to our common goal, a nation where all of us are winners. Let us build a nation of champions – Nelson Mandela

three focus areas, namely 'Nation Building', 'Youth Entrepreneurship' and 'Employment Creation'.

In doing so, it supports South Africa’s National Youth Development goals as the free online platform is aimed at the youth from Grade 10 onward. It includes a Learning Management System combined with a Jobs and Business Opportunities portal.

It also allows members to chat to one another, share and swap information and therefore network with each other, while having immediate employment, procurement and enterprise development opportunities presented to them by the many businesses who will be involved in supporting the development and implementation of the Games in Durban in 2022.

“Nation of Champions is a place to reignite a sense of belonging and pride in the country and its people, moving towards a common goal - delivery of an exemplary sporting event, economic prosperity and upliftment for everyone,” explains Madoda Khuzwayo, the young entrepreneur who developed the platform.

“Unlike other legacy initiatives, Nation of Champions will not be dependent on handouts or donations.

We have developed this based on tried and tested principles, and with an eye to the future of how the connected society communicates through the Internet, and on the move, with revenue generated through digital means,” he continues. Khuzwayo is no stranger to the Internet, having already developed several successful technology-based commercial enterprises and in the process authored a book on cloudcomputing for Africa.

Nation of Champions’ revenue model also finds a place for sponsorship and

”

enterprise development support, which will allow it to disburse monies back to South Africa Sports Confederation and Olympic Committee (SASCOC) for the continued growth and development of all sporting codes in South Africa. <

outh Africa was recently awarded the hosting of the XXII Commonwealth Games. But, did you know that with each and every Games, there are legacy projects that are left behind - either as straightforward commemoration or as vital ongoing social development projects? While South Africa will be instigating a number of these, a world first for the Games is the implementation of a legacy project before the actual Games, and whose stated aim is to 'grow and sustain a Nation of Champions'.

To do that and to understand why South Africa’s legacy project is breaking new ground, it is important to understand that 60 percent of the more than three billion total population of all 71 Commonwealth Games countries is under the age of 30. As a result, more and more young people are entering the workforce, so there is a growing and pressing need to create sustainable employment and fiscal security throughout the Commonwealth.

Finding the solution to long-term social and economic prosperity is difficult. However, with the power and reach of the Internet, the solution to a more equitable affluence could very well be here.

'Nation of Champions', an online hybrid social networking platform, has been created by entrepreneurs for entrepreneurs, and is staggeringly simple. Therein lies its effectiveness and the reason that the Commonwealth Games Federation believes that all 71 countries in the Commonwealth could benefit from it as it supports the Federation’s Transformation 2022 strategy by practically helping to address future job and employment creation opportunities.

MADODA KHUZWAYO is a socially Responsible Entrepreneur (SRE) who is building sustainable businesses based on advanced IT capabilities. At an early age he fell in love with the world of the Internet and the infinite possibilities it can generate for commercial use and social change. His remarkable journey from humble beginnings to his seat at several boardroom tables is inspirational. Fast Company magazine has also recognised this and in its July 2015 issue acknowledged him as one of South Africa’s Top 50 most creative people in business.

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PBF | TRAINING

Skills development and training seminars Johannesburg

T

he final round of Skills Development and Training for 2015 commenced with the Johannesburg event on 4 November 2015. More than 150 delegates attended the training, which was conducted by Jan Coetzee of Makarios Training and Development, who has become well known to our participants.

The topic of the day was 'Sales and Marketing Fundamentals' and the focus was on subjects such as market research, marketing plan, the marketing mix, marketing strategies, trade missions, trade shows, advertising and mobile marketing. The section dealing with social media was

96

clearly of great interest to the delegates; they found this an exciting new way of marketing their businesses.

The delegates used the opportunity to ask many questions about new and modern marketing methods in an effort to grow their businesses. Much of the time was spent training delegates on how to be successful salespeople, as this is key to a successful business. The selling process, the attitude of the seller, selling skills and building relationships were some of the subjects that were discussed.

Once again, this course re-emphasised the importance of sales and marketing to the success of any business.

T

he last of the training seminars for 2015 took place in Cape Town on 18 November 2015. The topic of the day was 'Sales and Marketing Fundamentals' and the focus was on market research, marketing plans, marketing strategies, trade missions, trade shows, advertising, social media and mobile marketing.

For the sales division, the focus of the seminars was on

the salesperson, the selling attitude, selling skills, building relationships, targeting the right market, time management, customer service and achieving your goals.

Marketing clearly remains one of the most important aspects of company activities, and during their training, delegates indicated that they would appreciate more workshops on this topic.

PBF | TRAINING

Cape Town

97

PBF | TRAINING

Durban

T

he second stop for the last Skills Development and Training Course for 2015 was in Durban on 12 November. As per the Johannesburg seminar, the topic was 'Sales and Marketing Fundamentals'.

The focus was on training delegates on how to market and sell effectively, with specific reference to successful selling techniques and attitudes, building relationships, generating prospects, targeting oneâ&#x20AC;&#x2122;s market, time management, customer service and methods of achieving

98

sales targets.

Marketing as a tool to success was discussed, with the focus on market research, the marketing plan, lowcost marketing strategies, trade missions, trade shows, advertising in its various forms as well as the use of social media as a tool.

The course once again emphasised the need for continued training in the field of marketing and sales, which is the very essence of a successful company.

Y-2-K CUSTOMS ACADEMY

ZA-Y2K-3-13-001

Mokalokano Construction cc

INTERNATIONAL TRADE & TRANSPORT Customs Clearing – Shipping – Airfreight Procedures – Dangerous Goods Regulations ATO : SACAA/DG/0049

IATA CARGO COURSES IATA AVIATION COURSES TETA 08 -117

ICDL ZA 150131T

IATA TRAVEL & TOURISM COURSES

ID 613421

SUPPLY CHAIN MANAGEMENT & LOGISTICS

COMPUTER LITERACY LPA/00/2013/01/045 ID 90061884

CAPE TOWN

THE STUDIOS BUILDING 63 ROSE STREET CAPE TOWN Tel CPT: 021 4222261/ 086 1102151 Email : info@y2k-online.co.za

ENGLISH LANGUAGE

Philani Ncube Director

GAUTENG UNIT OF06 DE LUCIA COLLONADE NO 16 MONUMENT ROAD, KEMPTON PARK TEL: 011 9701143/ 086 1102151 Email: jnb@y2k-online.co.za

0861102151 www.y2k-online.co.za

Muthelo – BEE

Muthelo Treasury

Services - BEE certificates for QSE’s and Generics - Pre-verification support - Offer an analyst to assist with required compliance documentation to understand and comply to the BEE legislation - Consulting to understand requirements and better scoring - Consulting to understand the newly amended B-BBEE codes

Services - Insurance Brokers - Short term insurance - Long term insurance - Commercial insurance - Medical aid - Construction Risks - Indemnity Cover

SERVICES OFFERED Building construction | General building | Plastering Plumbing | Painting | roofing | Civil construction Road construction | Paving | Drainage and storm water maintenance | and general supplier Physical address Office no. 6 6A OR Tambo street Nedbank building Middleburg 1050

Postal address PO Box 316 Middleburg 1050

S.D Gordon Tell/Fax (013)2431585 Cell: 0791359501 Email: sdgordon700@gmail.com

MPHO MUTAVHATSINDI, DIRECTOR No. 2 Benton House Bond Street Business Park Cnr. Bond Street and Kent Avenue Randburg 2194

T 011 079 7333 E info@muthelo.co.za W www.muthelobee.co.za

SERVICES

• Electricity and Water Meter Management -Meter Supply -Meter Reading -Meter Audits -Meter Installations • Construction of Electricity and water meter networks -Electrical Construction -Plumbing and -Civil construction • Rural Solar Installation HEAD OFFICE PINETOWN 11 Rosella Road Pinetown Tel: 031 701 3916 Fax: 031 701 3917 REGIONAL OFFICES WESTERN CAPE 31 Sycamore Crescent Atlas Gardens Contermanskloof

Tel: 021 556 3658 Fax: 086 517 3590 GAUTENG Unit 23, Knightsgate Industrial park Jonas Street Germiston Tel: 011 825 0504 011 825 0033 Fax: 086 517 3590

NEWCASTLE 79 Scott Street Newcastle Tel: 034 315 3852 RICHARDS BAY Unit 6 Mcgra Park 3 Brasslink Road Richards Bay Tel: 035 751 2512

GURU | SECRET TO SUCCESS

The secret to a succesful business We chat to TITUS XIMBA, CEO of Kuntwela Enzansi Ventures, to find out his secrets to success Q: Tell us about yourself A: I was born in the village of Tugela Ferry in the KwaZulu-Natal Midlands.

I’m married with three children and three grandchildren.

Q: Tell us about your business A: The business, which I own with my wife, started operating in 2002. We employ about 200 people and have a presence in KZN (our head office is located in Pinetown), the Western Cape and Gauteng. We plan to grow our company throughout all nine provinces. Our business has a culture of excellence. We pride ourselves on training people who have no experience and giving them skills; in fact, some are managers today.

Q: What are some of your business’s key focus areas?

A: Kuntwela Enzansi Ventures focuses on electricity and water meter

Q: What is the secret to the company’s success?

A: Reliability, hard work, commitment and excellent service. Customer service is key to our business; we focus on delivering services beyond customer expectation. We also respect business and the money it creates, so we invest in the resources that make it grow. In addition, we are committed to looking after every aspect of the business.

Q: What advice do you have for small business owners?

A: When starting a business, you must choose something you like and have a passion for. Let money and profits be the by-product of what you enjoy doing. This will keep you from giving up before you have the opportunity to become a success.

Work hard on your dream, manage all possible risks and be self-motivated. Your business needs to have a vision that you follow and that guides you through its growth.

Make sure that your business vision is current and future oriented.

Q: What would you say is your secret to success?

A: I dream big, I have a passion to succeed, a fear of failure and undying self-motivation.

My most important advice would be to build on the following firm biblical foundation: “I trust in God with all my heart and do not lean on my own understanding”. <

Q: What led you to start your business?

A: I was motivated by a passion for creativity and needed the independence and freedom to allow this creativity to flourish. With the country battling with unemployment, I saw an opportunity to create employment for young people and decided to focus on the municipality business sector.

projects, plumbing, electrification, solar and civil projects. We mainly service the local government, assisting with revenue protection projects and revenue enhancement. We believe we can help the municipality with service delivery and also assist in increasing their revenue.

CEO of Kuntwela Enzansi Ventures, Titus Ximba

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PHOENIX COLLEGE

QUALITY EDUCATION AT A PRICE YOU CAN AFFORD

• A TOP ACHIEVING SCHOOL • 100% MATRIC PASS RATE SINCE 2008 • NELSON MANDELA TROPHY FOR DUX STUDENT IN GAUTENG IN 2012

Full Time School - Matric Rewrite Centre - Saturday school (Computer Classes in Saturday School at R20/hour)

FACILITIES INCLUDE: PRE-SCHOOL Ideally situated to provide education for children of mothers working in the inner city.

FULL TIME SCHOOL With an unbeatable record

SATURDAY SCHOOL Helps upgrade learners from poorer schools who are struggling to pass their grade

MATRIC REWRITE CENTRE Which has already assisted thousands of learners in obtaining their Matric certificates

The COMPUTER COLLEGE, opening in 2015 will provide courses in Microsoft Office as well as A++ for young adults working in the inner city

YOU HAVE TRIED THE REST, NOW TRY THE BEST. For more information on our courses contact us on 011 720 6796 / 073 471 5045

GURU | EDUCATION

Phoenix rising We chat to FRED BOLTMAN about starting Phoenix College when South Africa became a democracy in 1994 Q: Tell us about yourself A: I was born in Potchefstroom. I completed my matric in Oudtshoorn in the Klein Karoo and then went to Tukkies in Tshwane to complete a B.Sc. (Eng) degree. My main focus in life is collecting knowledge and passing it on to other people. It was therefore natural that, after a successful career as a research and development engineer, and going on pension, I would consider moving into education to keep myself busy.

Q: Tell us about your business A: In Greek mythology, the Phoenix bird dies in a fire, but out of the ashes two babies arise. The name, 'Phoenix College' seemed to be a good representation of the rainbow nation that was about to emerge out of the ashes of the old dispensation, and so Phoenix College was born in 1994. It had eight staff members and three classrooms of learners from Grade 7 to Grade 9. In 2016, we expect to have 1,000 learners from Grade R to

Q: What are some of your company’s key focus areas?

A: The key focus of Phoenix College has been to provide quality education at an affordable price. Our successes in education and extramural activities have been phenomenal.

To mention but a few over the last few years: • Top School in Drama at Hillbrow Theatre.

• Second in chess in Gauteng; fifth in South Africa.

• Certificate from Swedish NGO for being a child-caring school.

• We have won the Inner City Soccer League twice.

• Winning a trophy for being the top achieving school in Gauteng District South.

• A 100 percent matric pass rate since 2008.

• Mandela Trophy for dux learner in matric in 2013.

Q: What is the secret to your company’s success?

A: Phoenix College has been featured in a report called Hidden Assets, which was published by the Centre for Development and Enterprise and distributed internationally. Many top educationists, including Professor

Stephen Ball of the University of London, have visited Phoenix College to find the answer to your question. I believe that total commitment, good management and brilliant teachers result in brilliant results. Our reputation has become our best marketing tool.

Q: What advice do you have for small business leaders?

A: The most important factor is the human being. Produce an atmosphere that oozes excellence, commitment and loyalty. Be passionate about what you are doing. Get others to buy into your vision and your passion.

Do a needs analysis and strategic analysis of the market to determine your critical success factors and key performance indicators.

Check your projected versus actual cashflow regularly to sustain solvency.

<

Q: What led you to start your own business?

A: In 1994, I went on early pension and was looking for something to do.

The education of the lower socioeconomic group in South Africa seemed to be the greatest challenge facing our rainbow nation. I had a passion to leave behind a legacy and education seemed a good choice.

Grade 12 in the full-time school, 600 learners in the Saturday School and about 100 young adults in the matric rewrite centre.

Fred Boltman, owner of Phoenix College

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PBF | GIVE BACK

CEEF.Africa and socio-economic empowerment The initiatives for the Centre for Education in Economics and Finance.Africa (CEEF.Africa) exemplify a proactive, tangible and sustained commitment to socio-economic empowerment for all South Africans

T

he Centre for Education in Economics and Finance.Africa (CEEF.Africa) is committed to a vision of a “socially cohesive society in which all people share”, a society which values “South Africa’s human potential and diversity”. Founded in 1996, shortly after South Africa’s first democratic elections, the centre set to work on delivering accessible critical education, primarily in the fields of economics, finance, management, strategic leadership and policy. In tandem with these efforts were initiatives to enhance access to critical and scarce 104

skills and, in turn, enhance access to those skilled resources.

The Strategic Management and Leadership Education unit is CEEF. Africa’s flagship programme. A local initiative with logistic and tutorial support, it has a relationship with the world-renowned Centre for Financial and Management Studies (SOAS, London University). Since 1999, more than 130 CEEF.Africa Executive Leadership programme students from varied backgrounds and fields have graduated with postgraduate diplomas and Master of Science degrees from

the University of London.

The centre also continues to invest in local government finance and management. Indeed, as early as 1996, the forerunner of CEEF.Africa’s Local Government Unit was the Local Government Training Programme, which focused on public finance and management of critical and scarce skills for councillors and officials.

Activities included training and a Councillor Exchange Programme between South Africa and the United Kingdom (funded by the Westminster Foundation and further supported

PBF | GIVE BACK

“

Since 1999, over 130 CEEF.Africa Executive Leadership programme students graduated with postgraduate diplomas and Master of Science degrees

”

by CEEF.Africa’s Socio-Economic Forum). There were more than 1,000 programme beneficiaries.

Adding value and robustness to the centre’s vision are several complementary initiatives, namely Applied Research, African Leadership Network, Socio-economic Forum, Human Capital Investment and Resourcing of Critical and Scarce Skills.

These initiatives give local, regional and global resonance from the centre’s work through to the socio-economic fabric and governance of South Africa through to the key relationships with leading academic institutions, independent democratic institutions and wider civil society.

CEEF.Africa’s core - its strategic operations team and its leadership convocation - are energised and critical leaders, committed to contributing through their own work as well as to assisting others as they strive to transform political, social and economic interactions through the realisation of good governance and effective, efficient and quality project management. Their contributions work towards the goal of a competitive, collaborative and equitable South Africa, locally and globally. The operations team comprises Joanmariae Fubbs (Director and Chair), Gugile Nkwinti, Victor Kgalema, Jabu Moleketi, Moyasi Catherine Mvelase, Arthur Moloto, Jay Pema and Ingrid Rossouw (CEO). Many graduates are well known, and all can be found in leadership positions in government, the corporate and civil society sectors.

MEC for Finance in Gauteng, Barbara Creecy

Johannesburg Mayor, Parks Tau (centre)

Gauteng Premier David Makura and Hon Joan Fubbs MP, CEEF.Africa Chairperson

105

VENUS SECURITY SOLUTIONS is a national security services and secured logistics company and has branches and site offices within major centres of South Africa. The Venus brand has been in existence since December 2001.

CORPORATE OFFICE, CENTURION, PRETORIA: No. 13 Esdoring Street, Central Park Building no. 5, Highveld Technopark Centurion, 0157 P.O.Box 732, Irene, Pretoria, 0062 T 012 665 3719 | F 012665 0486

VENUS SECURITY SOLUTIONS delivers a wide range of products and services, aimed at satisfying all the security and logistics requirements of a large spectrum of customers, from Retail, Mining Houses, Financial Institutions, Service Industry, Manufacturing Applications, National Key Point Protection, Aviation Security, Transportation of Assets, Surveillance and Close Protection, Parastatals and Government Departments.

SERVICES: Electronic Security Solutions | Risk Information Management | Armed Response | Physical Guarding | VIP Guarding | Secured Logistics

OFFICE PRESENCE: • Gauteng - Centurion • Limpopo - Polokwane • Mpumalanga - Mbombela & Standerton • North West - Mafikeng • Western Cape - Cape Town & Ceres • Eastern Cape - Port Elizabeth

www.venussecurity.co.za

SOUTH AFRICA JNB: Tel: +27 (11) 907 8808 Fax: +27 (11) 869 3323 JNB email: transit@transitco.co.za

CPT: Tel: +27 (21) 981 4779 email: allan@transitco.co.za

ZAMBIA

Cell: 00260 966 860703 email: karen.russell@realsk.co.zm

ZIMBABWE

Tel: 0027 828 177700 Cell: 00263 78320 8424 email: transitfanuel@zol.co.zw

 Road freight of perishable goods, general & industrial consignments, within the RSA & SADC REGION  Consolidated loads from RSA to Zimbabwe & Zambia  Warehousing and distribution  Global door to door ocean freight

Mzila HM Incorporated TELL US ABOUT YOUR COMPANY

Mzila HM Incorporated is a firm of attorneys that specialises in the fields of land tenure rights and land restitution claims. We assist South African citizens who were deprived of their rights to land through past racially discriminatory laws and practices. We also offer services in respect of Community Trusts and Communal Property Associations.

WHAT CHALLENGES DO YOU FACE IN THE INDUSTRY?

Like most black lawyers, I do face many challenges in the industry, including the lack of an infrastructure that is necessary in order for one’s business to grow. Because of this, black businesses are, at times, unable to procure bigger jobs from government and/or private institutions.

Also, we as black professionals lack the courage to team up and form strategic companies with footprints in

all of the provinces so that we are able to take advantage of the opportunities that are out there.

Our government has levelled the ground for black entrepreneurs to compete, but we are disadvantaged by the element of mistrust amongst us. It is every man for himself, which, in itself, hinders our growth. This is a major problem.

WORDS OF WISDOM

Remember, there are no shortcuts to business success. You need to be passionate about your dream. It’s important to persevere in the midst of challenges and adversities and be loyal to your mission.

PBF | PEOPLE IN BUSINESS

People of the PBF

WHAT IS THE BEST BUSINESS LESSON YOU HAVE EVER LEARNT?

One must not get too carried away and concentrate too much on the craft, which is practising law, and neglect the business side of the practice. Although I am a lawyer who is very passionate about assisting other people, I am also an entrepreneur and I want my business to grow and prosper.

Therefore, it is extremely important that I balance my core business with the finances of my own business in order to succeed.

Muzi Mzila, Director

SASSTEC Group TELL US ABOUT YOUR COMPANY

Since its inception in 1994, the SASSTEC Group has built a progressive reputation in the security solutions industry by subscribing to a distinct philosophy that concentrates largely on innovation, advancement and maintaining customer satisfaction. The business was started to revolutionise the security industry.

The key focus of the business, which comprises SA Fence and Gate, Integritron, Civil Quip and others, is to provide customers with turnkey personalised integrated security solutions. The SASSTEC Group’s uncanny in-house ability to design, manufacture, install and integrate client specific security solutions from A to Z makes it the leader in its field.

The SASSTEC Group provides custom integrated security solutions. Some of its projects have included: • Securing national key points.

• Eskom.

• Security management systems for various government departments.

• Security perimeter fencing for prisons.

• Integrated security management systems for correctional services.

individual and unique requirements.

WORDS OF WISDOM

Stay true to your roots and focus on providing your individual customers with tailor-made services and solutions.

WHAT IS THE BEST BUSINESS LESSON YOU HAVE EVER LEARNT?

The SASSTEC Group has been successful because of staying true to its original vision and having good leadership. It has continuously outdone itself, year on year. The group takes great pride in delivering value that exceeds the client’s expectations. All work is done on time and right the first time. Attention to detail and personal care to a client’s specific requirements makes us masters among experts in our field.

Whether it is a R500,000,000 project or a R50,000 project, our ethos and work ethic remain the same: Provide the best possible solution at the best possible price at the highest quality based on a client’s

Geoff Greyling, CEO 107

PBF | PEOPLE IN BUSINESS

i-LINE FILMS TELL US ABOUT YOUR COMPANY

The advantage of working for a company or in government is that you get shielded from work training and skills.

The downside for an entrepreneurial spirit is the red tape. After working for government, business and UP for several years, I decided to start my own venture. By then I was involved in several documentaries, training videos for doctors, corporate productions and a few broadcast films on local and international TV and I knew it was time to pay it forward. i-LINE FILMS is an award winning business, founded on over 30 years’ experience to entertain, inform, train and equip our viewers. Situated in Pretoria, we deliver video solutions for local and international clients. We supply copywriting services and photography.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

We focus on the corporate, advertising and documentary arenas because there are countless success stories just waiting to be told. It is very important for others to realise that they can create an inspirational path to success for themselves. Video is by far the most

powerful way of passing on these legacies.

We are now progressing into feature film production and our challenge is to get young, local filmmakers onto an international level. We want to ensure that South Africa can supply a score of films for local broadcast and for international distribution. Making movies is a team sport and a great return on investment, so we know that this industry will make a substantial income for these film-makers and talent in the near future.

Our main focus in the international market is to illustrate our continent’s most precious commodity, the spirituality of Africa.

money every day. We do not purchase things with cash, we buy them with our time and that is one commodity that we can never buy. Do not live the American dream, believing that wealth is the only success achievable. Follow your passion.

WHAT IS YOUR SECRET TO SUCCESS? Success is being happy with what you have and aspiring to achieve more. We work as a team and compete within ourselves to excel at what we do.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

We have always focused on skills development, bringing in passionate film-makers and putting them on the production floor. We have an incredible track record of enabling young entrepreneurs to start their own ventures.

They in turn employ and skill more people and so it keeps paying forward. We supply more than just skills, we build self-esteem.

WORDS OF WISDOM

Stop chasing the money. We print new

Johnny Tout, Director

Megatest TELL US ABOUT YOUR COMPANY

Starting the business has not been easy, but I have persevered throughout the years and I value every step I have taken to get me to where I am today.

For the past 20 years, Megatest has provided a specialised service to industries such as local municipalities, Eskom, SANRAL, Transnet and electrical contractors. The company has built an impressive reputation as a reliable professional technical service provider.

I previously worked for eThekwini Municipality, Electrical Test Department for 11 years. My extensive municipal test experience and electrical construction and maintenance knowledge has allowed me to provide an exceptional standard of service.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS? • Employees: We maintain a

108

positive working environment by motivating our staff in order to bring out the best in them.

• Quality: We pride ourselves in delivering a unique customer experience by maintaining professional services and ensuring that our clients are always satisfied.

• Compliance and ethics: We hold ourselves to a high ethical standard in business practices according to the regulations.

• Health and safety: We strive to eliminate incidents from occurring in the workplace and on site.

Maintaining our clientele by providing reliable services that bring 100 percent customer satisfaction. Having a good working team in our company’s possession. Without teamwork, one cannot become a reputable business.

WORDS OF WISDOM

It is important to be true to your clients, and to ensure that you comply with the requirements necessary for the work you offer.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

Preggie Govender, Director

GHT Consulting is a scientific consultancy company with more than 22 years of experience in the fields of earth sciences and environmental management.

GHT has the experience, expertise and resources to develop multi-disciplinary approach strategies for the detection, exploration, sustainable development, management and protection of one of Africa’s most valued natural asset; - Groundwater.

Pegs and Aces is a turn key construction company focusing on infrastructure improvements, renovations, building and management of multi occupancy and high density student accommodation, office blocks, Town houses, hospitals, airports, universities and shopping malls.

PRODUCTS AND SERVICES

HYDROGEOLOGICAL SERVICES OFFERED -Rural & Urban Groundwater Supply Investigations.

-Groundwater Exploration, Development & Management.

-Aquifer Delineation, Recharge & Catchment Management Studies -Groundwater Flow, Fate & Transport Modelling -Aquifer Hydrochemistry, Risk & Contamination Assessments -Water Use Licence Application –Municipal & Private Use -Groundwater Dewatering Investigations & Assessments -Geohydrological Investigations & Registration of WWTW & DWS Free State Bloemfontein +27 82 652 2992 +27 51 444 0088 ghtfs@ghtglobal.com

Eastern Cape Port Elizabeth +27 82 656 6996 +27 41 378 1252 ghtec@ghtglobal.com

Mpumalanga Amersfoort +27 83 679 9806 +27 86 679 9806 ghtmp@ghtglobal.com

Directors: LJ van Niekerk, MSc, Pr.Sci.Nat. & DC Rudolph, MSc, Pr.Sci.Nat.

-Construction and related services including: General building, Electrical Installation Tiling, carpets, plastic and wooden floors Carpentry, Project Management Painting, Paving, Energy saving Steel and Aluminum (Shopfronts) Plumbing, Water proofing -General Facilities Management: Property management, Asset protection and Access control, Cleaning services, -In house professionals Tel: 011 079 4309 • Cell: 076 111 4833 / 081 539 0054 Fax: 086 663 3649 • Email: pegsnaces@yahoo.com 22 Solomon str Braamfontein JHB VAT NO. 4150239053 • REG:2005/150398/23

www.pegsnaces.co.za

Its time to call the pro’s...

Teloc is South Africa’s leading Drain Specialist company offering maintenance, cleaning and unblocking of sewer and storm water pipes.

Through the use of the most advanced equipment and our highly trained staff we offer service of the highest quality 24 hours a day, 7 days a week including public holidays.

Our services include: > > > > >

CCTV Pipeline Inspection Cleaning of large storm water drains, pump stations and treatment plants to a depth of 8 meter using a Super Sucker with a combination Vacuum and Jetting.

Servicing and cleaning of septic tanks, sumps and pump stations using a high powered Vacuum Truck.

Bin Hire Portable Toilet Hire

24 Hour Emergency Service

For more information contact us on: Tel: 041 372 1080 • Fax: 041 372 2351 • Cell: 079 490 5747 • Email: kady@teloc.co.za www. teloc.co.za • 49 Seaview Road, Little Chelsea

We help people with the following:

Bad Luck | Relationship Problems | Infertility | Miscarriage | Diabetic | Low sex drive | Menstruation pain | Pick up your Business | and many others

FIND US AT: • City

• Day

• Street

Johannesburg

Fridays & Saturdays

c/o Pritchard & Polly Streets

Zeerust

Sundays

Next to KFC & FNB

Rustenburg

Mondays

No 62 Steen Street

Polokwane

Tuesdays

Divinish & Book

Malamulela

Wednesdays

Head Office

Contact Dr Hlati C: 082 765 2815 | 073 346 1800 | 073 144 8032 E: drhlati@gmail.com

PBF | PEOPLE IN BUSINESS

Epaphrus Electrical TELL US ABOUT YOUR COMPANY

As a student at Bopedi Bapedi Comprehensive High School in Limpopo, I was fascinated by the electrical industry. From that time I knew that I wanted to start my own electrical contracting business once I finished my studies. After completing my tertiary education I went to work for Pelane Electrical Contractors, who, up until today, still guide and mentor me.

After working in the corporate sector for six years, I realised that I wanted to enjoy the flexibility that comes with being self-employed. It made sense for me to start working for myself.

I founded Epaphrus Electrical in 2005 as a 100 percent black youthowned business and to this day the company is passionate about skills development and skills transfer Epaphrus Electrical specialises in the following fields: • Electrical consulting services.

• Project management services.

• Medium voltage services.

• Low voltage work.

• Electrification.

• Vegetation management.

• Air-conditioning services and coldroom plants maintenance.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

• Our business mainly focuses on the water and sanitation treatment works and bulk water purification plants across the country. This is mainly due to a big shortage of skills in this sector.

• We also strive to excel in telecommunication power (AC/ DC grid construction) and satellite service establishments across South Africa.

that our 'marketing tool' is our satisfied customers.

The current fiscal climate in South Africa means that one needs to make calculative and feasible steps in sustaining any business (the emerging companies are more vulnerable to this situation). Perseverance is important - never lose focus of what you want to achieve. Also, in my last 10 years of business, I have always needed to focus and see both sides of any problem.

WORDS OF WISDOM

Identify your target market and align this with your business capacity. Do not take on more than you can handle as that will lead to unhappy customers. As the owner of the company, put in enough effort and time growing your business.

Remember, being your own boss means that you need to work twice as hard. Most importantly, work smarter than your employees… this means that you will have very little spare time.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

We always emphasise the importance of customer satisfaction; we believe

Epaphrus Mankwane, CEO

Zululand Filters TELL US ABOUT YOUR COMPANY

I was born and schooled in Newcastle and relocated to Richards Bay where I gained a lot of experience in the aluminium industry.

As I had gained so much experience in the filtration industry, I took the challenge. I bought an existing small business that, together with a committed team, has grown the company into a formidable organisation within the filtration industry.

Everything we do has a direct impact on the environment. We offer diverse solutions to all mining, industrial, marine, commercial and domestic clientele. We specialise in clean air, dust collection maintenance services and supplies and water purification systems. We focus on improving quality of life. Our business has expanded into other arenas; we are also key suppliers of marine parts to the shipping industry. Recently, and in keeping with our environmental focus, 110

we have established a small biodiesel plant using recycled vegetable oils.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

Over and above building longterm business relationships and engaging with our customers to seek improvements, we also customise our offering to deliver the best results.

Sustaining our business is a huge focus as it is key to future growth and to the security of our customers.

We are constantly adapting our focus and operations as required. We remain a dynamic organisation, with no red tape.

We always actively seek technological improvements and cost savings, which we pass on to our customers.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

I don’t let failures shift my focus from the goal. My personal strength comes from enriching my mind. You never stop learning.

WORDS OF WISDOM

Always run your business with big business ideas, but small business ideals.

Never lose that entrepreneurial spirit.

Suren Gopi, CEO

TELL US ABOUT YOUR COMPANY

I was born in the rural part of Limpopo in Modimolle, and raised by my father, who is blind, and my mother, who was a domestic worker.

After grade 12, I worked at the toll gate as a cashier and then I studied business management at Damelin. I started my business in 2006 and have worked hard to build it.

The motivation to start a business came from noticing how much cash was being collected every hour when I was working as a toll gate cashier. I realised there is money in South Africa and decided that by the time I reached 40, I wanted to be self-employed.

My aim was to have my own business employing mostly women and looking after orphans. My main ambition was to improve my home town and help women gain meaningful employment.

As a mother, safety comes first and that is why I focused on road safety to make sure that the roads were in excellent condition.

The company focuses on painting the correct road markings and maintaining all of the roads to prevent accidents occurring from bad road maintenance.

In this way, we are protecting our

community and ensuring that the people who live here have peace of mind while they are travelling on our roads. That is why we chose the name 'Tshireletso' for the company.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

The company’s main focus is on people’s safety on the road. We maintain both provincial and national roads and look after the municipality as well.

Road maintenance includes ensuring that drivers can see clearly and that the lines are properly drawn so that they are guided on where it is safe to drive.

Also, build a good relationship with your bank. Don’t change your bank because of the overdraft.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

Respect, being prepared to listen, to learn and to deliver. My company offers the best services.

We ensure that our clients are always our main priority. Tshireletso is dedicated to giving our customers the very best service possible. Time is our greatest priority.

PBF | PEOPLE IN BUSINESS

Tshireletso

WORDS OF WISDOM

Don’t be driven by money; you must be the driver. Put the company first.

Put it before yourself. Respect your employees because without them you are nothing. Know your business. Run your business yourself, not over the phone. Manage your time and plan everything thoroughly.

Remember, you don’t only complete projects because you are getting paid for them. Learn to be patient, take your time and make sure you understand what you are doing.

Raisibe Pole, Director

Khatha-Khatha Trading Enterprise TELL US ABOUT YOUR COMPANY

I am a strategist, visionary and leader who has helped to establish a number of businesses.

I studied in South Africa and then went on to complete my Master of Business Administration (MBA) in London in the UK. Passion is what led me to start my own business. I became tired of the corporate life and decided to start my own company so that I could influence the country’s economy.

Khatha-Khatha Trading Enterprise was established in 2006. Since its inception, the company has successfully completed many projects in Gauteng, Mpumalanga and the Eastern Cape.

In 2012, Khatha-Khatha Trading Enterprise won the regional as well as the national Govan Mbeki Awards.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

Our main areas of business are general building, civil engineering and electrical works.

project before we start with it and always complete every project that we start.

WORDS OF WISDOM

You must be able to move quickly, easily and lightly, that is, you need to be able to understand things quickly and easily, finish every project that you start and only bite off what you can chew - don’t take on more than you can handle.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

Dedication and truthfulness is the secret to the company’s success.

Khatha-Khatha Trading Enterprise is supported by a dedicated team of workers. We evaluate each and every

Takalani Tshivhenga, Founder 111

PBF | PEOPLE IN BUSINESS

Dezzo Equipment TELL US ABOUT YOUR COMPANY

I joined the company on 1 August 2012 after retiring from a longstanding career in the public service. I was initially appointed as General Manager and on 1 February 2013 became the company’s Managing Director.

After the first democratic elections in 1994, a new political dispensation came into effect that placed an emphasis on the upliftment and development of previously disadvantaged people. One of these initiatives entailed broad-based economic empowerment, compelling businesses to have representative shareholding should they desire to do business with government and mining entities.

Dezzo was established with a 60 percent shareholding vested in a previously disadvantaged person.

Dezzo is linked to a company that is renowned internationally and locally for its wide range of quality equipment and customised attachments.

The reality of economic constraints in general is forcing service providers to improve on service delivery and the valuefor-money concept. Customers have faith in the brand; this is being maintained by the ongoing servicing of customer needs.

On 1 January 2007, Dezzo Equipment was appointed as the official independent BEE dealer in South Africa by Manitou Southern Africa (MSA), which is responsible for selling Manitou and Gehl

ranges of equipment in the country.

In addition to the geographical areas of Mpumalanga, Swaziland, Limpopo, Northern Cape and designated areas of Gauteng and North West, Dezzo is also involved in all deals involving national, provincial and local government and parastatals requiring procurement through an accredited BBBEE contributor.

Currently Dezzo is certified as a level 1 contributor. During its existence the company has supplied approximately 600 Manitou and Gehl units throughout its assigned dealership areas. These units are maintained and repaired by Dezzo’s fully equipped service centres in Middelburg, Mpumalanga, Kathu in the Northern Cape and Modikwa Platinum Mine in the Steelpoort area. We receive the full backup on sales, aftermarket and technical support from Manitou Southern Africa.

Democratic South Africa saw a need for companies with BBBEE status and we seized the opportunity. Once the company was established, we hired well-trained sales and aftermarket personnel. MSA’s ongoing support and refereeing and its management were of the utmost importance; without this we would not have been able to achieve and maintain our success.

WORDS OF WISDOM

Have faith in your product, surround yourself with loyal and competent staff and deliver your service with dedication, pride and integrity. Believe in yourself and the product you represent.

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

As an appointed dealer of a company that has an established brand name both nationally and internationally, it is our main objective to perform our activities in line with and in accordance with the set standards and service charter. We strive to serve our customers with integrity, effectiveness and efficiency.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

Andre Roos, MD

Mogolola, Mokoka & Associates Consulting Engineers TELL US ABOUT YOUR COMPANY

We are both engineers; one of us trained at the University of Natal and the other studied in Texas. We founded the company Mogolola, Mokoka & Associates to provide a much-needed service to the underdeveloped and developing areas in our country. It is the company’s priority to train and develop the skills of mainly previously disadvantaged communities.

Mogolola, Mokoka & Associates offers a spectrum of services in the civil engineering field, including planning, investigations and assessments, concepts and viability, system and process design, detailed design, supervision and management, and upgrades, renewals and extensions.

112

WHAT ARE SOME OF YOUR COMPANY’S KEY FOCUS AREAS?

Key focus areas are in water supply, water and waste water treatment, and related water-retaining structures.

into new projects wherever feasible. We have a love of civil engineering and the ability to accept objective criticism and sound advice.

WORDS OF WISDOM

Stay focused and continuously evaluate your performance with respect to peer companies.

WHAT IS THE SECRET TO YOUR COMPANY’S SUCCESS?

We have the utmost passion for what we do. We follow up on progress and review adverse impacts during the implementation of projects.

We identify talent in locals during project implementation and rope them

Hilton Mokoka & Jonas Mogolola, Directors

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