SA Business Integrator - Volume 8 l Issue 1 - January 2022

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

Volume 8 | Issue 1 | January 2022

SA leading the African space race

Can SA revitalise its manufacturing capabilities?

5 Principles

for SA becoming a major EV producer

‘Hydrogen Valley’

has potential to boost GDP by billions COVER FEATURE

R65.00 Incl. VAT

22004

Ingo Hamann: Stiebel Eltron MD

Growth opportunities for clean energy solutions 9 772411 292008

Current Affairs

Economic Development

Business Integration

Be Be Be Be

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ED'S NOTE

What a journey it’s been over the past couple of years. As we kick-off 2022, we are hopeful that it will be a stellar and productive year going forward.

South African Business Integrator @SABImagazine

With the start of a new year, it is an opportunity to impact positive change.

Over the past few years we have made great strides in fast-tracking of digitisation to enable delivery, and I am hopeful that we will be able to continue on this journey of change for progress.

In 2021, clean energy was a buzz phrase, and we started to see some major developments from a green perspective. In this edition experts give some insight of the potential of hydrogen, and the downstream benefits. We are also seeing more businesses shifting towards the installation and implementation of sustainable renewable energy sources to drive operations – many highlighting the use of alternative energies to develop more small businesses, enable job creation and decrease the impact of loadshedding on operations. These are all positive developments, however it remains up for debate as to whether we are doing enough from a green energy perspective. There is no easy answer to this as while we have resources and local talent, we have to remain cognisant of socio-economic realties.

Last year (2021) we also saw government forging ahead with its localisation policy. It is early days to say whether or not this is a step in the right direction, but what can be said is that further engagement will be required to ensure that adequate support is provided to business.

While recent statistics paint a gloomy picture about the state of our economy, we need to prioritise collaboration between stakeholders to unlock job opportunities and promote upskilling opportunities, resulting in positioning South Africa as a major player in the business arena.

Tashne 2

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Contents GROWTH & INVESTMENT

COVER FEATURE

Growth opportunities for clean energy solutions in an emerging SA market

COP26

COP26: A tale of progress (and disappointment for some)

INTERVIEW: ELECTROLUX Electrolux leads locally

8 14 18

OPINION EDITORIAL: ELECTRIC VEHICLES 5 Principles for SA becoming a major EV producer

INTERVIEW: NERSA

Amendment to the Electricity Regulation Act

22 24

How socio-economic realities in South Africa impact on growth and investment

HEALTH & SAFETY

Championing local manufacturing in workplace safety solutions 58

HOW WE WORK

Hybrid, borderless offices & big shift in culture: 5 Things to know about work in 2022

INFORMATION & COMMUNICATIONS TECHNOLOGY

How businesses can help build the next ICT generation

INVESTMENT

RENEWABLE ENERGY

The importance of project planning: Solar is not an off-the-shelf solution

26

ENERGY

Reducing energy consumption and costs

28

ENERGY

‘Hydrogen Valley’ has potential to boost GDP by billions

30

How property investing can chip away at the wealth gap

MANUFACTURING

Can SA revitalise its manufacturing capabilities?

Covid-19 in the workplace: the rights of employers and employees

34

64 68 70

POST-PANDEMIC RECOVERY: BPO

Global business recovery & reconfigured post-pandemic business models .za domain namespace sees surge of domain name registrations during pandemic

RISK MANAGEMENT & INSURANCE

DIVERSITY

Diversity & inclusion become more important than ever during a pandemic

38

DOMESTIC PRODUCTION

Localisation perspectives – the steel viewpoint

42

eCOMMERCE

Choosing the right B2B ecommerce model

46

EMPLOYMENT EQUITY

Employee induction a vital step for productivity & job satisfaction for people with disabilities

Prevention is better than cure

TECHNOLOGY

SA leading the African space race

SMMEs

Access to funding for SMMEs demystified

WOMEN EMPOWERMENT Connected Womxn!

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70 42 sabusinessintegrator.co.za

60

74

INTERVIEW: .ZADNA

COVID-19: WORKPLACE

4

54

78 84 88 92 96

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Credits

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

South African Business Integrator @SABImagazine PUBLISHER Elroy van Heerden elroy@mediaxpose.co.za EDITOR Tashne Singh editor@sabusinessintegrator.co.za SUB-EDITOR Tessa O’Hara tessa.ohara@gmail.com CONTENT MANAGER Wadoeda Adams artwork@mediaxpose.co.za DESIGNERS Anja Bramley artwork1@mediaxpose.co.za Shaun Mays artwork2@mediaxpose.co.za

Cover image: Rozier van Tonder Image credits: 123rf.com

Distribution: ON THE DOT

EDITORIAL ASSISTANT Maurisha Niewenhuys maurisha@mediaxpose.co.za EDITORIAL CONTRIBUTORS Mandy Mlilo Minister Ebrahim Patel Kate Collier Nivaani Moodley Jenna Atkinson Thato Kola Mervin Munsamy Nick Durrant Linda Christensen

Professor Imraan Valodia David Francis Nadia Hearn Delia De Villiers Amanda Moropa Teresa Settas Claude Hamman Gordon Malebo

ADVERTISING SALES MANAGER Bruce Crowie bruce@mediaxpose.co.za

Published by:

ADVERTISING SALES CONSULTANT Rene van Heerden rene@mediaxpose.co.za Jacqui Marsh jacqui@mediaxpose.co.za DIGITAL MARKETING MANAGER Trish Jukes digital@mediaxpose.co.za

6 Carlton Crescent, Parklands, 7441 Tel: 021 424 3625 Fax: 086 544 5217 E-mail: info@sabusinessintegrator.co.za Website: www.mediaxpose.co.za

SOCIAL MEDIA Kyla van Heerden social@mediaxpose.co.za

Disclaimer: The views expressed in this publication are not necessarily those of the publisher or its agents. While every effort has been made to ensure the accuracy of the information published, the publisher does not accept responsibility for any error or omission contained herein. Consequently, no person connected with the publication of this journal will be liable for any loss or damage sustained by any reader as a result of action following statements or opinions expressed herein. The publisher will give consideration to all material submitted, but does not take responsibility for damage or its safe return.

CHIEF FINANCIAL OFFICER Shaun Mays shaun@mediaxpose.co.za

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DISTRIBUTION & SUBSCRIPTIONS Shihaam Gyer distribution@mediaxpose.co.za

RECEPTION Daniëla Daniels receptionist@mediaxpose.co.za

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COVER FEATURE: STIEBEL ELTRON

Growth opportunities for clean energy solutions in an emerging SA market With increasing energy prices and a concerted effort by companies to look towards cost-efficient green solutions, STIEBEL ELTRON Southern Africa’s new Managing Director, Ingo Hamann, talks about the strategic vision and growth opportunities for clean energy solutions in an emerging SA market.

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COVER FEATURE: STIEBEL ELTRON

What is the STIEBEL ELTRON vision for South Africa?

The further expansion and development of STIEBEL ELTRON Southern Africa Limited signals that we are here to stay. Our goal is clearly defined; as one of the top companies in Europe for building services based on renewables, we want to make a significant contribution to the distribution of highly efficient, electricity-based building service products in South Africa and the surrounding countries. We are focused on positively contributing to the building industry, moving it towards green building and CO2 neutral, or CO2-free housing.

What are the opportunities for STIEBEL ELTRON in South Africa?

The energy transition is a done deal. That is why we rely on future-proof building technology based on electricity – because electricity is the energy source of the future. In contrast to oil and gas, it is not finite, but it is increasingly green and resource efficient. All our products run on electricity. I see the future developments using solar or wind power to drive these products. South Africa has a lot of sunshine, and as I experienced in the Western Cape, a lot of wind as well. With our products we can use this electricity in a smart way.

How can STIEBEL ELTRON’s products contribute to the green building industry locally?

With our 'renewables', our heat pump and ventilation product range, we consistently focus on green, energy-efficient building technology.

Our customers benefit from lower operating costs and a high level of convenience. Construction developers can predict operating costs much more reliably and benefit from many more functions that are provided with just one system technology.

As an example, the combination of heating, cooling and hot water preparation – functions that almost every building needs – with good planning are possible at the same time with our products. Just think of an office building that simultaneously has heating on the building side facing away from the sun and cooling on the sunny side. Of course, that doesn't work with oil heating.

Our instantaneous water heaters will play a big role in the years to come. A STIEBEL ELTRON instantaneous water heater does more than heat water. You ask, it delivers, exactly when needed, in precisely the right amount and always at the selected temperature. That’s why we talk about DHW convenience. They are particularly useful in your bathroom or kitchen, where you frequently need a lot of hot water. There will always be enough room for one of our heaters, even in your guest toilet or under the kitchen sink. No matter the volume, consumption or requirements, you will find a match for your individual requirements.

How will the launch of the air ventilation portfolio in 2022 contribute to the green building industry?

Let's get back to CO2 savings. New houses don't just have double-glazed windows. They are more insulated in the walls and roof. But we all know that a lot of moisture is created in the house through human breathing, daily showering and cooking processes. Who would want to ventilate their house several times a day, let alone leave their window open while one is absent? That is why we use our centralised or decentralised ventilation systems with heat recovery in buildings. In addition to the advantages mentioned, you can breathe fresh, filtered air 24/7, save heating costs and protect your investment.

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COVER FEATURE: STIEBEL ELTRON

How will STIEBEL ELTRON's expansion locally enable skills development, job creation, and strengthen partnerships and collaboration?

In addition to a strong team that can offer the full STIEBEL ELTRON package, resilient and, above all, long-term partnerships are also required. The expansion of our partner network consists of several steps. The training of specialist companies in the field of heat pumps is one of the most important. A good system can only function if everything, from planning to implementation and subsequent service, is done professionally and consistently. We enable our partners to train their employees according to high standards. We have brilliant trainers here in the country and thanks to the new means of communication, we can also bring in our trainers from Germany. The empowerment of employees and the building of self-confidence in the job can only be achieved through good training. This will then again benefit the general public.

In SA, as we have for a long time, we will work with the local associations. New projects and the use of new products also create jobs. There are so many people who have brilliant ideas in the field of green building technology, and we can help implement them.

What role can STIEBEL ELTRON play to effect positive change towards reducing CO2 emissions locally?

The greatest challenge facing humanity now is climate change, the consequences of which can be felt all over the world. Everyone can do something to stop climate change, be it on a small or large scale. There are great projects and implementations in the field of green technology in SA. We have to work more closely with some in order to drive forward CO2 reduction with our products.

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How do STIEBEL ELTRON’s products compare to alternate energy resources being currently touted?

Those who opt for fossil heating technology these days are opting for technology that is being phased out.

The green-hydrogen dream is not necessarily efficient either. Of course, the energy transition cannot succeed without green hydrogen, particularly for industry, shipping and air traffic, and decentralised power generation in efficient power plants. Unfortunately, hydrogen does not fall from the sky. The extremely complex production makes it expensive; cautious estimates assume that the costs will be at least three times the current gas price. There is a cheaper, more flexible and convenient alternative – the heat pump.

Industry participants and politicians know that the heat pump is the only product that will prevail in the long term. Let's look at the UK. This is where the change is starting right now, and heat pump technology is being used on a large scale to achieve climate targets. It is more important than ever to

COVER FEATURE: STIEBEL ELTRON

replace the existing energy producers (coal-fired power plants) with sustainable solutions like solar, wind and waterpower. These energy sources can then directly use the electricity they generate in our heat pumps.

Yes, and we will also directly serve the neighbouring countries of Namibia, Botswana,

Mozambique, and Mauritius. We already have strong long-term partnerships in many of these countries and are working on a variety of projects.

With STIEBEL ELTRON South Africa as the hub, we can deliver faster support and service to our clients. These days, transport and logistics is not a simple task. Container ship transport is taking longer and longer. By having a transport and logistics hub in Johannesburg, we can serve all our clients more rapidly than ever before. We also foresee a lot of opportunity for new partnerships to

Zimbabwe, Lesotho, Swaziland, Zambia,

expand the network. 

Will STIEBEL ELTRON use SA as the hub for its sub-Saharan African market, and if so what will this look like?

Ingo Hamann, STIEBEL ELTRON Southern Africa Managing Director Managing Director, Ingo Hamann, has been with STIEBEL ELTRON for over 15 years and was previously based in Germany and China. He has a technical background, and qualifications as well as experience in economics, energy electronics and electrical engineering. Passionate about the environment, he notes that climate change is not just a change but is in fact a crisis.

“The world is changing and there is an opportunity for us to do better with new technological advancements. It is critically important for me to help drive responsible development from a clean energy perspective; and with this new position in South Africa, I together with my team, will be actively pursuing partnerships and collaborations to bring about clean energy solutions with premium product/ service offerings to the market,” he says.

STIEBEL ELTRON Founded in 1924, STIEBEL ELTRON is a market leader in the supply of technologies products for building services and green tech. It operates internationally with seven production facilities, 26 sales companies and sales agencies in over 120 countries. Driven by innovation, STIEBEL ELTRON focuses on efficiencies that are green for heating, cooling and ventilation.

STIEBEL ELTRON South Africa is currently based in Sandton, Gauteng, with aims to expand nationally.

Product and solutions offerings include: • Renewables: heat pump; system cylinders; controller/energy management; ventilation; DHW heat pumps • Hot water: instantaneous water heater; small water heaters; wall and floor mounted geysers; water boilers/automatic water heaters; water filter • Central heating: electrical heaters For more information, please visit: www.stiebel-eltron.co.za

sabusinessintegrator.co.za 11

Harnessed from the air Used for your living comfort www.stiebel-eltron.co.za

Sustainable solutions for your home – Heat pump technology Create your comfortable home with efficient building technology based on renewable energies - for example with heat pump technology for heating and cooling. Intelligent building services can improve your living comfort and offer you security of investment.

Hot Water | Heating | Cooling | Ventilation

ADVERTORIAL: STIEBEL ELTRON

A STIEBEL ELTRON

instantaneous water heater does more than heat water You ask, it delivers exactly when needed, in precisely the right amount and always at the selected temperature. That’s why we talk about DHW convenience. And why we call our premium appliances comfort instantaneous water heaters.

What are the advantages of STIEBEL ELTRON's decentralised instantaneous water heaters over centralised DHW systems?

Solutions for efficient DHW heating are differentiated into centralised and decentralised concepts.

Centralised DHW solutions are mostly DHW cylinders that are heated by the central heating system, or a geyser. In this case, reasonable efficiency levels dissipate through long supply lines. The actual energy efficiency of the system usually only comes to light in the end-of-year bill. This is because many cost factors, such as DHW circulation in ring mains, cylinder losses, standby energy losses and distribution losses result in high energy consumption.

Such factors are seldom recognised as DHW costs. If these hidden costs are also taken into account, then STIEBEL ELTRON's decentralised electric DHW heating systems are often more economical than centralised systems. This has been verified by various different studies and has been proven by thousands of installation around the world.

STIEBEL ELTRON electric instantaneous water heaters are energy efficient and environmentally responsible and offer many benefits, if planned in the right way.

1. Close to the point of use installation DHW heating appliances are fitted precisely where they are required: at the kitchen sink, at the washbasin, in the bathroom.

2. Energy saving Short pipe runs, due to installation directly on site, ensures that heat loss is reduced to a minimum. This saves energy and protects the environment.

3. Water saving Short pipe runs also means that there is no cooled water in the supply line, which needs to run off unused when hot water is drawn. If it is drawn directly at the source, no precious water is lost.

4. Easy to fit Our DHW appliances for decentralised DHW provision are quick and easy to install – even when replacing older appliances. This limits expenditure and saves time.

5. Accurate billing In apartment buildings, the possibility of accurate individual billing is truly appreciated. Everyone pays for what they use – not a penny more.

Discover the STIEBEL ELTRON instantaneous water heater range – a guarantee of exactly the right hot water temperature and the best comfort for you.

Thanks to its compact design, the instant water heaters are suitable for the kitchen sink, washbasin, the shower and the bathtub. In commercial settings, it can be used in utility rooms or, for example, supplying multiple hand washbasins in sanitary facilities.

010 001 8547 www.stiebel-eltron.co.za sabusinessintegrator.co.za 13

COP26

COP26: A tale of progress

(and disappointment for some) While some feel that the progress made at COP26 fell short of targets, the benefits to SA could catalyse major development gains.

By Thato Kola, Economics and Fixed Income Analyst, Matrix Fund Managers

14 sabusinessintegrator.co.za

COP26

The two-week long COP26 conference has come and gone, but now the question remains whether it achieved all that it had set out to accomplish.

At the conference, world leaders, climate activists and various civil organisations made pleas and submissions to the conference delegates to pursue adequate and immediate solutions to address the devastating effects of climate change.

Following intense negotiations, stretching beyond the allotted hours of the conference, consensus was reached by delegates and negotiators that led to the adoption of the Glasgow

Minister Johnson expressed his disappointment by noting that the countries most vulnerable to climate change demanded a higher level of ambition from the conference, which it failed to deliver. Climate-change activists and organisations were also critical of the outcomes reached in Glasgow.

The Climate Action Tracker, an independent research group analysing government policy actions relating to climate change, indicated that based on the target pledges by parties, including those made during the conference,

Climate Pact.

UK Prime Minister, Boris Johnson, hailed the resolutions taken at COP26 as a “truly historic” outcome, marking a decisive shift in the global approach to tackling carbon emissions by providing a clear roadmap towards reaching the Paris Agreement objectives and marking the “beginning of the end” for coal power.

According to the European Commission, the progress made on the three objectives, which were set at the start of the conference, were as follows: • Commitments to reduce emissions to stay within reach of the global warming limit of 1.5°C; • Progress to reach the target of US$100bn per year climate financing for developing and vulnerable countries; • The completion of the agreement on the Paris Agreement Rulebook1.

global greenhouse gas emissions in 2030 will still be about twice as high as required for the 1.5°C target. Greenpeace Executive Director Jennifer Morgan said of the outcomes, “It’s meek, it’s weak and the 1.5°C goal is only just alive, but a signal has been sent that the era of coal is ending. And that matters.” The organisation further reiterated that failing to deliver on firmly closing the gap towards meeting the Paris agreements, was a clear betrayal of the millions of people already suffering from the climate crisis.

The finalisation of the rulebook is significant because now there is an agreement that addresses the transparency and reporting requirements for all signatories to enable them to track their progress against their emission reduction targets.

During the closing plenary, the President of COP26, Alok Sharma acknowledged that the wording in the Pact had been sacrificed for the sake of a balanced outcome and that the possibility of reaching the target of 1.5°C was weak unless commitment translated into action. Similarly, Prime

The South African perspective is far more positive From a South African perspective, the developments from Glasgow will perhaps be interpreted more positively, on the back of the Climate Finance deal announced in the first few days of the conference. The deal worth US$8.5bn, or about R131bn, in the form of grants and concessional funding, will be mobilised over the next three to five years to drive the country’s low carbon transition. The proceeds will be used to “accelerate investment in renewable energy and the development of new sectors such as electric vehicles and green hydrogen”. It is important to note that this partnership with developed countries will drive the just transition approach through initiatives that support workers and communities most affected by the transition away from coal.

sabusinessintegrator.co.za 15

COP26

In contrast to the positive news for the country emanating from Glasgow, Eskom continued to experience electricity generation challenges, with the power utility implementing load shedding up to stage 4 – a stark reminder of the electricity supply challenges South Africa has faced for the past 14 years. Since the start of Eskom’s 2021/22 financial year (FY) in April, the average weekly unplanned outages have been 12,572MW. This had risen to over 14,296MW since early October, resulting in the load shedding across the country.

Figure 1 highlights the the weekly Energy

in South Africa’s energy sector. The Minister of Mineral Resources and Energy, Gwede Mantashe, announced the outcomes of Bid Window 5 under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)2. It was announced that 25 Preferred Bidder projects will be able to procure 2,583MW of power. The projects are set to plough about R50bn into private investment, which will offer a significant boost to the economy while also providing some 13 900 job opportunities. According to the Minister, it typically takes up to 36 months for grid scale

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Energy Availability Factor, %

projects to begin to produce power meaning that these projects will, unfortunately, not provide immediate solutions to the country’s energy security challenges.

Mantashe also said that Independent Power Producers, through 89 previously procured projects, are already providing 6,855MW to the grid. Importantly, the prices of these renewable projects continue to trend lower. The total weighted average price under the latest Bid Window 5 came in at R473/MWh. As Figure Progress in securing renewable energy as 2 shows, the actual tariffs achieved under the tariffs set to fall below coal production REIPPPP have been decreasing significantly, with costs wind and solar energy prices falling by 78% and Despite slow progress on the reform agenda, 91%, respectively since Bid Window 1 in 2011. there have been some positive developments According to Eskom’s 2021 Integrated Report, the unit cost for coal generation of Figure 1: Eskom Energy Provision Indicators electricity for the 18 000 75 Average Weekly Unplanned Outages Energy Availability Factor financial year was R421/MWh. With the 16 000 70 new Bid Window 6 14 000 65 set to be announced in January 2022, 12 000 60 coupled with falling technology prices and 10 000 55 the competitiveness of renewables, it 8 000 50 can be expected Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 that the tariffs under Source: Eskom Outage, MW

Availability Factor (the percentage of maximum available power generation capacity as a share of total power generation capacity). Eskom blamed the losses of generation capacity on a myriad of reasons, including the failure of power stations to return to service within the anticipated time, insufficient diesel to continue operating the open cycle gas turbines, power outages in Zambia, and the continuous tripping at a number of power units across the country.

COP26

Figure 2: Average Auction Tariffs Over Time R/MWh 5 000 4 500

Solar PV

Wind

4 602

4 000 3 500 3 000 2 500 2 000

1908

1 500 1 000

429

500 0

BW 1 - 2011

BW 2 - 2012

BW 3 - 2013 Source: CSIR

this procurement round will be lower than coal production costs.

Transmission infrastructure will be key As new renewable energy projects get underway, part of the puzzle in solving the energy security crisis in the country will be ensuring that the transmission infrastructure can adequately integrate the additional generation capacity onto the national grid. To address this, Eskom outlined their Transmission Development Plan (TDP) for the period 2022 to 2031. According to Eskom, the expected new generation capacity of 30GW, which will mainly be from renewable energy sources in areas that currently have limited network infrastructure.

The power utility also said that “to provide for an adequate and reliable transmission system, Eskom plans to increase the transmission infrastructure by approximately 8 400km of extra-high-voltage lines and 119 transformers to bring on board 58 970 MVA of transformer capacity over the next 10 years”3. To fulfil this plan, over the next 10 years Eskom plans to invest R178bn. Of this amount, R144bn will be allocated towards the expansion of new capacity

495

projects, while the other R34bn will be spent towards the refurbishment of the current asset base.

As envisioned by the 2019 Integrated Resource Plan (IRP), the South African energy sector is set for significant transformation with

the overarching objectives of improving energy security together with transitioning to cleaner sources of energy in a way that supports sustainable economic development. The recent developments in the sector, which include the increase to 100MW of embedded generation, the recently announced green financing partnership, the awarding of projects for Bid window 5, and the promulgation of Eskom’s TDP, lay the foundation for an energy sector that is reliable and supports the country’s climate change objectives.

To fulfil the targets set out in the 2019 IRP, which include adding 14,400MW of wind, 6,400MW of solar PV, and 2000MW of storage power by 2030, about 14 million solar panels and 3,600 wind turbines will be required4.

BW 4 - 2014

BW 5 - 2021

The potential this holds for South Africa is significant The renewable energy transition can be a key lever to catalyse the local manufacturing sector, attract private capital investment, and create much needed job opportunities across the construction, manufacturing, and operation phases of the various independent power producing phases. 

1.

European Commission. (2021). COP26: EU helps deliver outcome to keep the Paris Agreement targets alive

2.

Department of Mineral Resources and Energy. (2021). Renewable Energy IPP Procurement Programme Bid Window 5 – Announcement of preferred Bidders.

3.

Eskom. (2021). The Eskom Transmission Development Plan (TDP) 2022-2031

4.

GreenCape. (2021). The South African Renewable Energy Master Plan: Emerging Actions Discussion Document

sabusinessintegrator.co.za 17

INTERVIEW: ELECTROLUX

Electrolux leads locally

Murray Crow, Managing Director at Electrolux SA

Electrolux South Africa continues to deliver on its promise to reduce its environmental footprint by using renewable energy to power operations. Murray Crow, Managing Director at Electrolux SA, tells SA BUSINESS INTEGRATOR about Electrolux SA’s successful journey of shifting to sustainable and renewable energy solutions that powers an impressive 80% of operations during the day.

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In 2020 Electrolux SA implemented an 112kW solar system and developed a 1MW solar energy system that went live in November 2021 at the Benoni factory, powering factory and warehouse operations. What is the driving force behind achieving these milestones?

At Electrolux our core purpose is to shape living for the better. There is no better way than creating a sustainable future for the generations to come. At COP26, countries pledged their plans to reduce their emissions to ensure a better future. We also need to do our part and plan to be carbon neutral in our operations globally by 2030. We strive not only to offer our customers sustainable products (including solar geysers), but to manufacture them in a sustainable way.

Examples of this include: • 2020: 112kWp solar plant for offices which includes 308 solar panels. Cost at R1.4 million.

INTERVIEW: ELECTROLUX

Saved 131 tons of CO2 so far by not using fossil fuel generated electricity.

• 2021: 1 272kWp solar plant for the water heater factory which includes 2 892 solar panels. Cost at R16 million. Generated 420MWh just for November 2021, which is equivalent to a saving of 115 tons of CO2 emissions.

• 2021 to 2022: We have been audited to become ISO 50 001:2018 certified. We plan to obtain this energy management certification early next year.

• 2022: An additional solar project to commence to offset the remainder of the electricity purchased during the day.

What were some of the major challenges and how were these overcome?

We spent some time during the design phase and reworked the solar layout a few times to achieve the most optimum panel layout while keeping in mind some constraints. We also had some delays during the metal industry strike in October 2021.

We had to wait for key deliveries and had limited staff on site to aid the installation due to the safety constraints on the roads. Luckily the installers made alternative arrangements on weekends to ensure that we made our November deadline.

What were the highlights?

The biggest highlight was on 2 November 2021 when the project came together, months of hard work and planning all completed. We switched the solar system on and instantly generated 1.1MW of green energy. Further, earlier in 2021 (June), we were quite delighted when President Cyril Ramaphosa announced lifting the 1MW generation threshold to 100MW. We no longer had to limit our system and are able to plan future projects for 2022.

What are the benefits from an emissions and budget efficiency perspective?

We expect our renewable energy systems to cut our carbon emissions by at least 35% in our operations.

If the local infrastructure is in place to export power, this number will increase to 55%. Exporting power will allow us to offset the fossil fuel power consumed during the night with green solar energy. From an investment perspective, the solar system helps with the rising electricity costs in the long run.

The newest solar system enables Electrolux to power 80% of its operations during the day. Is the remaining 20% via the grid – and if so, what are the future plans for this?

Yes, in 2022 we plan to address the remainder of electricity imported during the peak day time with solar energy. The exact system size is still being planned, but 400 kWp is what we are aiming for. It should be more than enough to cover us for a large part of the day.

Has the shift to alternative energy impacted production/manufacturing?

No, we have duly planned our switchovers to have minimal impact on our business.

Has the move to alternative energies enabled job creation?

In the broad spectrum, energy systems like these do create jobs. For example, we provided work to local contractors for structural upgrades and trenching.

The idea for the Electrolux Group is to achieve climate neutral operations by 2030 – how achievable is this from a South African perspective?

Eskom is creating a new renewable energy tariff for businesses that would like to purchase green energy at a price. We hope this tariff is introduced sooner than later which will greatly help with electricity consumed during night-time and bring us closer to our 2030 target. We do not consume a lot of water in our production processes, nor do we produce a lot of waste going to landfills.

sabusinessintegrator.co.za 19

INTERVIEW: ELECTROLUX

Globally we aim to have all our plants certified in our Zero Landfill programme and have already started with it in South Africa. The aim of the programme is to reduce and totally eliminate all waste going to landfills. In 2021, we have found a way to re-use TPV plastic in our products.

Tell us a bit about the Electrolux Green Spirit programme.

The programme is a global initiative whereby Electrolux drives sustainability inside its organisation. Every year we aim to reduce our non-green energy footprint as well as our water consumption. Locally we have a cross-functional green spirit team that ensures we make our targets by finding creative ways to save water and energy.

Furthermore, all Electrolux plants are measured against the programme, and we will always strive for improvement.

What are some of the key learnings for other South African companies?

1.

Plan a larger system than what you actually need. Remember that everything degrades over time, and so does your solar generation. Ensure that your system will be able to deliver for your demand even 20 years down the line.

2.

Plan your financial savings according to your actual electricity consumption. Sales proposals are sometimes based on the solar system output, which makes the system look quite attractive, but unrealistic.

What does the future of Electrolux SA look like?

We want to encourage other manufacturers to produce their products in a more sustainable way.

In future, we might even require our suppliers to manufacture our raw materials more sustainably.

We all live in this world together and have a responsibility to ensure a better future for the generations to come. 

Electrolux Group Electrolux is a leading global appliance company offering high quality products including: refrigerators, freezers, ovens, cookers, hobs, hoods, microwaves, dishwashers, washing machines, tumble dryers, vacuum cleaners, air conditioners, air purifiers and water care products (domestic water heaters, Elon solar PV water heating, pressure control valves, commercial stainless steel, heat pumps, industrial water heaters, stainless steel sinks, commercial electric water heaters, instant boiling water dispensers, and spares and accessories.

Murray Crow, Managing Director at Electrolux SA, was born in Johannesburg, and completed his undergraduate studies at the Witwatersrand Technikon and his MBA through Henley Business School.

He began his career in 1991 as a Sales Executive at Cadbury’s, Coleman Foods and CPC Tongaat Foods before moving on in 1998 to Whirlpool South Africa where he held several executive roles in marketing and sales resulting in his appointment as Managing Director. From 20082021 he was Managing Director at Home and Living Brands. Following this, he joined Electrolux SA as Managing Director in 2021.

20 sabusinessintegrator.co.za

OPINION EDITORIAL: ELECTRIC VEHICLES

5 Principles

for SA becoming a major EV producer The local automotive industry remains the most vibrant manufacturing sector in the South African economy and is a major driver of economic growth and development for the country. The close partnership between Government, business and organised labour is the critical success factor which has seen the auto value-chain grow to approximately 7% of GDP and R175 billion in exports.

By Minister Ebrahim Patel, Department of Trade, Industry and Competition

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OPINION EDITORIAL: ELECTRIC VEHICLES

In August 2019, I set the large automakers in South Africa a challenge: to help develop a roadmap for the local production of electric vehicles (EVs). In 2020-21, the implications of this work has become more critical as growth in EV production and sales in our key export markets has accelerated. This is reflected in the new targets and deadlines to reduce the number of fossil fuel reliant vehicles on their roads in the EU and the UK amongst others.

Consequently, if South Africa is to preserve its status as a major auto manufacturing and exporter, a coherent strategy supported by all stakeholders is required to encourage the shift to the production of EVs.

Five principles form the basis for SA’s move to becoming a major EV producer 1.

It is widely accepted that, subject to technology developments that can reduce costs, the use of fuel-cell technologies based on platinum-group metal catalysers (green hydrogen technologies) can play to South Africa’s strengths and provide potentially significant demand for its raw materials. Special attention will need to be paid to this and efforts by the private sector to pilot with such technologies will be encouraged. As the green hydrogen technologies mature, they are expected to become the technology-ofchoice in SA and across the world.

2.

The value-proposition for SA needs to be clearly established in the form of additional jobs, stimulation of local industrial capabilities and expansion of production for new markets.

3.

While the principle of a technology agnostic framework is generally agreed, it is recognised that innovation may provide market-driven advantages to particular technologies. This could change the price-gap between EVs and internal combustion engines and thus reduce the extent to which support-measures will be required. Stakeholders will need to be alive to these opportunities and be prepared to take

firm decisions to unlock these.

4.

The current charging infrastructure in the domestic market should be expanded to incentivise motorists to switch to EVs. The private sector should play a key role in enabling such development, on commercial terms.

Government has already provided a common standards platform through the work of the SA Bureau of Standards (SABS).

5.

In the domestic market, the full value of carbonreduction can only be achieved in tandem with a shift in the country’s energy-mix: an increased proportion of renewable energy in the national grid will ensure that the electricity used to charge vehicles does not negate the positive effects on the environment of the electric vehicle technologies.

These principles are guiding the work of stakeholders to develop sound and credible recommendations that will pave the way for specific measures that South Africa can take to increase the supply and demand of EVs and establish a new basis for competitive auto vehicle production in SA. 

Minister Ebrahim Patel, Department of Trade, Industry and Competition

sabusinessintegrator.co.za 23

INTERVIEW: NERSA

Amendment to the Electricity Regulation Act

hailed as a positive way forward by the energy sector and industry National Energy Regulator of South Africa (NERSA) Head of Communication, Charles Hlebela, talks to SOUTH AFRICAN BUSINESS INTEGRATOR about government’s decision to allow private entities to increase from 1 to 100 megawatts.

24 sabusinessintegrator.co.za

With the increased electricity generation threshold for private energy producers from 1 to 100 megawatts, what is the expected uptake on this by private entities?

NERSA cannot speculate on the uptake. However, it’s expected that the increased threshold will result in increased applications for registration.

It should be noted, however, that the increased threshold is a signal of the deregulation of the electricity market in South Africa. Investments in

INTERVIEW: NERSA

electricity generation are exposed to the same market vagaries as any other commodity and all the typical market forces, such as demand for small-scale power and competitive pricing will determine how the uptake may develop over time.

deregulation, the impact of market forces will be more conspicuous, informing consumer choice over time.

What was the rationale for this decision?

How does the increased threshold enable job creation and the establishment and growth of SMMEs?

The amendment to Schedule 2 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), to exempt generation facilities up to 100MW from the licensing requirement is aimed at achieving energy security and reducing the impact of

It is expected that investment in new energy generation facilities and emerging technologies will enable job creation; however, many of the macroeconomic benefits are more dependent on industrial policy than energy regulation,

loadshedding on businesses and households across the country. The exemption includes generation projects connected to the grid, as well as those not connected to the grid. However, the generation facilities are still required to apply to NERSA for registration to ensure that they meet all the requirements.

such as the promotion and incentivising of local manufacture of the inputs to the electricity sector and a competitive investment climate to attract investors.

What is the impact for businesses and the general public with reference to energy costs and tariffs?

Increasing electricity tariffs negatively impact both businesses and the general public. As correctly indicated in the IRP 2019, as wholesale and retail electricity tariffs rise, it is expected that more electricity users will look for alternatives like rooftop PV systems (residential) or utility scale PV generation (mines and other big industrial users) and migrate away from the electricity grid.

However, as mentioned above, with incremental

... with incremental deregulation, the impact of market forces will be more conspicuous, informing consumer choice over time.

How does NERSA envision the energy mix from private producers?

NERSA implements government policy. The current Integrated Resource Plan (IRP 2019) states that South Africa continues to pursue a diversified energy mix that reduces reliance on a single or a few primary energy sources. The IRP 2019 further indicates that the extent of decommissioning of the existing coal fleet due to end of design life could provide space for a completely different energy mix relative to the current mix.

What are the opportunities for private producers based on South Africa’s location and availability of natural resources?

The DMRE has hailed the amendment to Schedule 2 of the Electricity Regulation Act as a positive way forward by the energy sector and industry across the board. It is envisaged that this step will unlock significant investment in new generation capacity in the short-to-medium term, and make significant inroads towards achieving national energy security, as well as reduce the impact of loadshedding across the country. 

sabusinessintegrator.co.za 25

RENEWABLE ENERGY

The importance of project planning:

Solar is not an off-the-shelf solution

For many businesses, it has become a necessity to adopt solar PV solutions to augment or replace grid-power. The drive towards solar is three-fold: lower electricity bills, more reliable supply, and a decreased carbon footprint.

By Svilen Voychev, Managing Director of Valsa Trading However, businesses looking to install solar PV solutions need to consider more than just the choice to ‘go green’. There is a wealth of considerations when looking to implement solar.

The most important one right now, arguably, is the solar PV supply chain which has been disrupted in recent months and is hampering the global and local industry.

Valsa has wide-ranging operations and I have seen in recent months that the supply chain today is very different from that of 2019, when the last round of Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bidding ended.

Project managers today must look holistically at the industry when making decisions over raw materials, labour, sub-contractors and more. With projects going ahead after the announcement of 25 preferred bidders in the fifth bidding round of the REIPPPP, we can expect these projects to take up much of our local capacity and put further strain on the supply chain in the coming years.

Add to the mix the necessity of finding trusted service providers who can ensure your installation is done to the highest quality, standards and specifications. A comprehensive and holistic approach to planning will save you some nasty surprises down the line.

We have seen a growing urgency to set up solar power solutions as the South African power sector finds its way in their energy transition. This transition will take several years. In the meantime, people want reliable power, now. However, keep in mind that you cannot simply pick a solution off the shelf. There is more to consider. 

It all comes down to planning At the most basic level, it is all going to come down to planning. Those looking to install solar need to ensure they have a proper system design, which takes into account: the suitability of products for the application; the availability of these products; and their cost.

26 sabusinessintegrator.co.za

Svilen Voychev, Managing Director of Valsa Trading

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ENERGY

Reducing energy

consumption and costs The growing need to reduce energy use and CO2 emissions, while cutting operational costs, is seeing ‘unprecedented levels’ of interest in energy-efficient technologies – including low and medium voltage drives – across sub-Saharan Africa, says power and automation technology group ABB. Drives have a significant potential for energy saving across a range of industries, including power, water and wastewater, cement, mining, metals and pulp and paper.

By controlling the speed and torque of motors, drives can reduce energy usage by between 30%50%, thereby significantly improving industrial energy efficiency. Drives are used to adapt the motor speed to the actual need, which optimises energy consumption and lowers environmental impact.

ABB Product Marketing Manager, Sean McCree, says while financial decision-makers were generally attracted by the potential of drives to save costs and reduce energy consumption, electrical engineers were realising major benefits through greater network reliability, reduction of maintenance and greater mechanical equipment longevity.

“There’s a growing demand for energy-efficient products in the sub-Saharan market that takes into account the region’s specific requirements, from the voltage level to protection design, to ensure that drives can work optimally in a variety of complex, harsh working environments. At the same time, clients are looking for products that are easy to operate and maintain,” says McCree.

28 sabusinessintegrator.co.za

Higher efficiency, cost-effectiveness & ease of implementation ABB recently relaunched its ACS580MV drive in the local market, offering higher efficiency, costeffectiveness and ease of implementation to the industrial sector, with applications specifically for pumps and fans. Built-in energy calculators, including used and saved kWh, CO2 reduction and money saved, help users monitor and fine-tune their processes to ensure optimal energy use.

The ACS580MV is also fully compatible with the company’s ABB Ability condition monitoring services, which allow customers to obtain realtime data about the status and performance of the monitored equipment from any location. The drive is supplied 'ready to connect' to the ABB Ability condition monitoring services, which simplifies ondemand remote support.

“Since the launch of the 3.3kV voltage range, we have seen a significant growth in local order intake from both existing and new customers. This is a clear indication that the market has realized the product is well positioned to offer a value proposition backed by a very well established local service team”, says McCree.  www.abb.com

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ENERGY

‘Hydrogen Valley’ has potential to

boost GDP by billions

By Mandy Mlilo, Director: Hydrogen and Energy, Department of Science and Innovation

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ENERGY

The study on the feasibility of developing a hydrogen valley in South Africa is seen as critical for advancing South Africa's socio-economic growth and global competitiveness.

Recent data released by Statistics South Africa shows that unemployment in South Africa has reached unprecedented levels. The results of the Quarterly Labour Force Survey for the third quarter of 2021 showed that the official unemployment rate had increased to 34.9%, the highest since 2008 when the survey began.

Promoting initiatives that encourage entrepreneurship and job creation, like the proposed South African hydrogen valley, are key to addressing this challenge.

The recent launch of a study on the feasibility of developing a hydrogen valley in South Africa is the result of many years of investment by the Department of Science and Innovation in scientific knowledge domains seen as critical for advancing South Africa's socio-economic growth and global competitiveness.

One of these is the hydrogen economy, which has long been identified by the Department as a potential game-changer for the reindustrialisation of South Africa. The intention is to leverage the country's abundant mineral and natural resources (including solar and wind energy, which can be used to produce hydrogen) to make the country an exporter of cost-effective green hydrogen to the world. The hydrogen valley initiative is supported by government as part of the country's move towards a hydrogen economy and inclusive growth, and thereby reducing unemployment, poverty and inequality.

Nine promising projects The hydrogen valley feasibility study identifies nine promising projects (across the transport, industrial and construction sectors) that could be used as a springboard for establishing the hydrogen valley. The valley will start near Mokopane in Limpopo and extend through an industrial and commercial corridor to

sabusinessintegrator.co.za 31

ENERGY

Johannesburg, leading finally to Durban.

One project will focus on converting heavyduty diesel-powered trucks into fuel-cell-powered trucks, which will support increased consumption of hydrogen in the transport sector. The projects will also facilitate the commercialisation of publicly funded intellectual property and the beneficiation of platinum group metals in targeted geographic areas.

The feasibility study projects that hydrogen demand along the corridor could reach up to 185 000 tons by 2030. The hydrogen valley has

and if the financial models around the initiative are not sustainable.

To support the successful implementation of the hydrogen valley, the Department of Science and Innovation will continue to work with other government departments to come up with a comprehensive approach to making sure that public sector funding can be mobilised to reduce the risks for private sector funding.

An inclusive, comprehensive and sustainable governance structure, anchored in the quadruple helix model (the public sector, the

the potential to add between US$3.9 and US$8.8 billion to the country's GDP (through direct and indirect contributions) by 2050, and to create between 14 000 and 30 000 direct and indirect jobs per year by 2030.

Government's investments in the establishment of the hydrogen valley are aimed not only at addressing the country's energy needs, but also at meeting the day-to-day socio-economic needs of ordinary citizens. The jobs that will be created will contribute to building a socially inclusive economy and implementing government's Economic Reconstruction and Recovery Plan, as well as the achievement of the Sustainable Development Goals.

private sector, academia and civil society), will be established. An awareness campaign to engage with communities at the centre of the transition will be organised to ensure that buy-in is obtained.

The provision of tailor-made support to shovel-ready projects within the hydrogen valley can enable innovation in the policy-making process, while de-risking the financial and technical components of a project. Regulatory barriers will be fully researched and a detailed game plan for the necessary revisions will be established so that an enabling environment can be put in place as soon as possible. 

Successful implementation depends on the collective ability of key stakeholders to avoid potential hurdles The successful implementation of a hydrogen valley depends on many factors, including the collective ability of key stakeholders to avoid potential hurdles. Regulations require players to follow permit procedures properly and observe safety requirements for hydrogen deployment.

There may be preparation barriers if there is no governance model for the project, or if the project is not accepted by local communities.

Funding may be a problem if private investment or public financial support cannot be obtained,

32 sabusinessintegrator.co.za

Mandy Mlilo, Director: Hydrogen and Energy, Department of Science and Innovation

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COVID-19: WORKPLACE

Covid-19 in the workplace:

the rights of employers and employees

All employers in South Africa have a legal obligation to, as far as reasonably practical, provide their employees with a workplace that is safe and without risk to the health of their employees.

By Kate Collier, Nivaani Moodley and Jenna Atkinson, Webber Wentzel

34 sabusinessintegrator.co.za

COVID-19: WORKPLACE

The Covid-19 pandemic has highlighted this obligation, and the measures required of employers, cannot only be seen determined with reference solely to inward factors and hazards caused by work. The Labour Court1 has found that "there is no bright line between public health and occupational health…" and that "public health concerns the entire population and occupational health a subset of that population". Following from this, employers are equally required to consider external public health hazards and their impact on the workplace and, as far as reasonably

together with considerations of the operational requirements of the employer and where it indicates as necessary, employers are legally permitted to implement policies requiring that all employees be vaccinated against Covid-19.

However, even though an employer may implement a mandatory Covid-19 vaccination policy, an employee retains the right to refuse the vaccination on any constitutional or medical ground. Where an employee refuses vaccination, the obligation shifts to the employer to, amongst other things, reasonably accommodate that

practicable, put measures in place to prevent the spread and transmission of disease in those workplaces.

Employers are, and have been, required to specifically consider the hazard of Covid-19 and assess and control the risks associated with the disease, in their workplaces and to put measures in place to safeguard the health of their employees. These measures include the minimum statutory obligations of mask wearing, sanitising, ventilation etc., but also employers may well be required to go beyond these measures based on their identified hazards and the measures that would be considered reasonable to mitigate identified risks. Employers must equally consider the full conspectus of employee health (including mental health, ergonomics and physical health) and safety.

The specific regulations dealing with occupational health and safety related to Covid-19 in workplaces, the Consolidated Direction on Occupational Health and Safety Measures in Certain Workplaces was amended in June 2021.

The amended OHS Directive requires employers consider the role Covid-19 vaccination as part of its risk assessment processes and, through this assessment, determine whether a policy requiring mandatory vaccination is necessary.

The risk assessment considers the legal duties to safeguard employee health and safety

employee.

Where an employee refuses to be vaccinated, the OHS Directive states that an employer should counsel the employee and, if requested, allow the employee to seek guidance from either a health and safety representative, worker representative or trade union official, refer the employee for further medical evaluation or advice and, if necessary, take steps to reasonably accommodate that employee.

While such a policy does, naturally, limit the choices or rights of employees, this would be rational, fair and justifiable where the risk assessment has been thoroughly performed by the employer and the policy is implemented to

The risk assessment considers the legal duties to safeguard employee health and safety together with considerations of the operational requirements of the employer and where it indicates as necessary, employers are legally permitted to implement policies requiring that all employees be vaccinated against Covid-19.

sabusinessintegrator.co.za 35

COVID-19: WORKPLACE

protect employee health and safety. Furthermore, from a constitutional perspective, no right in the Bill of Rights is absolute. The South African Constitution specifically provides for the limitation of rights, where such limitation is reasonable and justifiable – this must be determined based on the facts within each employer.

Importantly, the recently gazetted notice on compensation for Covid-19 vaccination side effects has confirmed that the Compensation Fund will cover employees for injuries, illness or death as a result of receiving a Covid-19 vaccine when the

Diseases Act for Covid-19 related injuries, illness or death will provide some level of comfort to employers considering mandatory vaccination; the notice specifically reiterates that employers may not vaccinate employees against their will – essentially reiterating the right of employees to refuse vaccination as set out in the OHS Direction.

The key question then for employers in implementing mandatory Covid-19 vaccination policies is rather then one of reasonable accommodation and the steps to be followed

employer requires employees to be vaccinated as an inherent requirement of employment or where the need of employees to be vaccinated is based on the risk assessment performed by the employer.

While this specific inclusion into the ambit of the Compensation for Occupational Injuries and

when reasonable accommodation cannot be achieved, rather than whether vaccination policies are permitted.  Association of Mineworkers and Construction Union v Minister of Mineral Resources and Others.

1

Ed’s Note: Please note this article was printed in December 2021.

36 sabusinessintegrator.co.za

DIVERSITY

Diversity & inclusion

become more important than ever during a pandemic

Covid-19 has focussed a spotlight on diversity and inclusion (D&I) in our organisations. The pandemic has had a harder impact on many diverse groups, including women, working parents and LGBTQ+ employees, with magnified challenges around caring for family and working.

By Mervin Munsamy, Head of Human Resources, ABB South Africa

38 sabusinessintegrator.co.za

DIVERSITY

As we ponder what our future world of work will look like, there’s never been a better time for us to make our D&I initiatives even more inclusive, by encouraging dialogue across all hierarchical levels and enabling creativity and innovation.

What does diversity and inclusion really mean?

This question has taken on added significance as we navigate the pandemic. As our people have had to adapt to a world where remote and hybrid working becomes the norm, company values and culture have never been more important.

For me, a strongly inclusive culture starts when a business creates an environment in which everyone can flourish, thrive and be themselves. Diversity and Inclusion are not just ‘the right thing to do’: it lays the foundation for innovation and better decision-making across the business by allowing all voices to be heard, ensuring everyone feels valued, and linking that value to the success of the organisation.

It’s vital that any D&I approach looks to embed priorities like the health, wellbeing, and resilience of a workforce into an enterprise’s people strategy, as these variables will have a significant influence on future performance and success. Supplier diversity is another important topic, especially in a country like South Africa, as it talks directly to how we are influencing positive change in our communities.

Leadership is required for sustainable change to take place None of this happens by itself, though. A business can’t expect to simply make policies and establish Codes of Conduct and expect change to take place. Leadership, not just at a strategic level, but at all hierarchical levels is required for sustainable change to take place. Moreover, systems and

structures must be put in place to ensure D&I is embedded in all processes and becomes a standard part of the business agenda.

It must be supported by ongoing training and development programmes, mentoring programmes and appropriate learning interventions. It has to be modelled by the leadership and lived through the company’s values.

Measurement becomes a critical success factor, as the adage goes, ‘what gets measured, gets done’. As a business, it’s vital to hold yourself accountable, and establish a dashboard to monitor your KPIs regularly.

sabusinessintegrator.co.za 39

DIVERSITY

The UN’s Sustainable Development Goals are broadly seen as the blueprint to achieve a better and more sustainable future – and it’s no surprise that goal number five is gender equality.

D&I must align to broader business issues What’s absolutely critical to the success of D&I is that it aligns to broader business issues like sustainability, which are top of mind for many business leaders. The UN’s Sustainable Development Goals are broadly seen as the blueprint to achieve a better and more sustainable future – and it’s no surprise that goal number five is gender equality. It’s a natural link.

A big part of diversity will always focus on gender. My company’s Global D&I Strategy 2030 aims to double the percentage of women managers across our offices in the next 10 years, from 12.5% to 25%. That’s just one target, though.

True inclusion and equality span across all areas of diversity, which include, for example, gender, abilities, generational, hierarchical level, ethnicity, LGBTQ+, and so on.

As part of our efforts to foster a more diverse and inclusive culture, ABB launched a genderneutral global parental leave programme that grants 12 weeks of paid leave for primary caregivers and 4 weeks for secondary caregivers.

The new programme aims to give every parent an opportunity to spend more time with their adopted children or newborns, and balance career and family responsibilities. Aligned with local regulation, the global parental leave programme was implemented on 1 October 2021.

40 sabusinessintegrator.co.za

How are we adapting to the new world of work brought on by the pandemic?

For a start, company values and culture have become more important than ever. They’re the glue that bind our people together, especially during volatile times. We’re seeing more empathy, transparency and communication than ever before in our workforce, and this is positive for everyone.

Ultimately, truly diverse and inclusive organisations will be businesses where diversity, inclusion and equal opportunity in the workplace, marketplace and community are a natural way of doing business, with no overt regulation or policy needed to enforce it. We’re still some way off that, but it’s work in progress.

Diversity and inclusion are a continuous journey, and we learn something new every day.

But it’s a journey we cannot afford to stop, not even for a moment. Our futures as people, and businesses, depend on it. 

Mervin Munsamy: Head of Human Resources, ABB South Africa

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DOMESTIC PRODUCTION

Localisation perspectives –

the steel viewpoint

In recent months the spotlight has been shone on government’s localisation plans, which aims to reduce imports and build domestic production to supply local and international markets, thus enabling job opportunities. But is localisation a sustainable option to develop SA or will it create further challenges?

42 sabusinessintegrator.co.za

DOMESTIC PRODUCTION

For years various industries have taken a knock due to high production costs, skills gaps, unrest and cheaper imports. Keitumetse Moumakoe, CEO of the Steel Tube Export Association of South Africa gives his viewpoint.

How has the industry been impacted due to imports?

Cheap Asian imports have left an indelible mark on the South African local steel tube and pipe industry, that in part culminated in the demise of once one of South Africa’s largest steel tube and pipe manufacturers Robor in 2019. The failure by government of not extending the same import duty and tariff protection to the downstream steel industry as they did to the primary industry, left this segment of industry completely exposed to cheap imports and further exacerbated the dire straits the industry was already in.

Other notable steel tube and pipe manufacturers that had to ‘right size’ their companies to mitigate the market and import onslaught include Macsteel Tube and Pipe and Trident Steel, to name but a few in the public domain. A jobs bloodbath inevitably ensued, closures and business rescue cases rose as the downstream steel industry’s margins were eroded by imports and the sustainability of the industry in existential threat. The steel tube and pipe industry has shown positive green shoots post the risk adjusted Covid-19 opening of the economy due to pent up demand, and it is hoped that an infrastructure growth lead economy will maintain this trajectory.

How will localisation policies benefit SMMEs? Localisation is very beneficial for SMMEs who often plug into the steel value chain at a downstream level, where they fabricate and add value to primary and midstream steel products to produce specific structures and products often done to final user specifications. Localisation reduces the

Holistically, localisation enables the steel industry to leverage on public expenditure from SOEs who’s collective expenditure contributes on averages between 15% to 20% to GDP...

barriers of entry into the industry because steel resources would be locally and readily available for these micro enterprises who supply into both public and private projects. An infrastructure driven economy is also imperative to creating opportunities for small players and assist in their sustainability.

How do you see the industry benefiting from the policy?

Holistically, localisation enables the steel industry to leverage on public expenditure from SOEs who’s collective expenditure contributes on averages between 15% to 20% to GDP; it enables the development and enhancement of local manufacturing capacity and capabilities, creates employment and supports broader economic empowerment.

Localisation of steel products underpinned by the objectives of the recently signed Steel Masterplan could have the gravitas to influence supply chain competitiveness and economic policy by getting key stakeholders that own and manage key supply chain links to fully commit to the localisation drive.

Industry would require policy amendments that would ensure that steel manufacturers have access to globally competitive domestic input material (i.e. hot roll coil), energy/electricity, port tariff costs, export rebates and transport infrastructure.

Without these interventions our steel export efforts

sabusinessintegrator.co.za 43

DOMESTIC PRODUCTION

will be futile, and we’ll witness more and more transhipment imports from Asia via South Africa with final destinations to other SADC countries.

The localisation drive and the short to medium term drive of establishing a globally competitive steel supply chain have got to be aligned and mutually inclusive, failing which the unintended consequences will result in unwarranted construction and end product cost inflation.

carefully calibrated liberalisation of trade and took advantage of any trade openings to expand their manufactured exports.

I’m confident that the DTIC have applied their minds in implementing localisation industrial policy within the confines and framework of South Africa’s trade agreements with its trading partners.

What needs to be done to ensure localisation policies are sustainable?

The cost of locally manufactured generic carbon steel tube and pipe products is comparably more

Significant public capital infrastructure investments are critical year-on-year, adequate raw material and semi- finished input products to manufacture designated finished goods, lower barriers of entry into the downstream steel industry and efficient competitive manufacturing. Localisation must not be used as a scapegoat for the uncompetitive.

How do you think localisation policies impact trade agreements?

Localisation policies are not unique to South Africa and some of the most prominent developing countries such China, India and South Korea employed such industrial policies during the nascence of their industrialisation drives. It was only when the respective countries had achieved a level of competitiveness that they moved towards a

What about the cost of producing products locally?

expensive than equivalent Chinese manufactured products due to structural cost inefficiencies in South Africa’s steel supply chain.

Key legacy input cost challenges are as follows: • Escalating electricity prices are rendering primary and downstream steel manufacturing companies, especially high energy consumers, uncompetitive.

• Inefficiencies and high costs of road, rail and port infrastructure continue to undermine the competitiveness of the downstream industry.

• The uncompetitive cost of hot roll coil input material that steel tube and pipe manufacturers procure from the primary manufacturer.

Localisation policies are not unique to South Africa and some of the most prominent developing countries such China, India and South Korea employed such industrial policies during the nascence of their industrialisation drives.

Keitumetse Moumakoe, CEO of the Steel Tube Export Association of South Africa 44 sabusinessintegrator.co.za

DOMESTIC PRODUCTION

Other perspectives

DTIC According to a statement by the DTIC, localisation “is about building local industrial capacity for the domestic market and for export markets. It is not a turn away from engaging in global markets, but it is about changing the terms of the engagement to one where we are no longer mainly an exporter of raw materials.”

Intelledex Report The response to localisation by business has been varied according to a report released by Intelledex: “A number of respondents posed interesting concerns around export and AfCFTA: how can companies exporting from SA and building globally competitive businesses be expected to import substitute when they should be deepening global supply chains, particularly in the rest of Africa. Some called for an exemption of export-led companies

to ensure that there would be jobs maximisation onshore interlinked to new global supply chains.

Currently there is an uneasy calm in sectors with compacts like car manufacturing, but it would seem there is some cry from industry for a more thoroughly thought-out policy in this area from DTIC.” CDE Report A report released by the CDE argues that: “The benefits of localisation are overstated while the costs are dramatically understated.” The report further states: “The competitiveness of exporting firms, particularly of manufactured goods, is also dependent on access to high-quality, competitively priced intermediate inputs. Since localisation will restrict access to competitively priced imports and result in higher production costs, the policy is, in effect, an anti-export strategy.” 

sabusinessintegrator.co.za 45

eCOMMERCE

Choosing the right

B2B ecommerce model

Customer behaviour has changed significantly since the introduction of global restrictions and lockdowns.

B2B sales organisations have quickly embarked on a digital transformation journey to meet customer demands and to sell goods and services online.

By Bluegrass Digital CEO, Nick Durrant

46 sabusinessintegrator.co.za

Gartner says 80% of B2B sales interactions between suppliers and buyers will occur in digital channels by 2025. According to a study conducted by Grand View Research, the global B2B ecommerce market size is estimated to reach US$25-trillion by 2028.

In a B2B ecommerce model, businesses sell products or services to other businesses online.

The sales cycles normally take longer but they do have higher order values with more recurring purchases. The main reasons why B2B customers prefer ecommerce is the ease of buying online,

eCOMMERCE

convenience, access to an online catalogue with available inventory and delivery times.

Ecommerce domain is rapidly improving through digital transformation The ecommerce domain is rapidly improving through digital transformation, making it more efficient for vendors, manufacturers, wholesalers and distributors.

For example, ecommerce innovators have replaced traditional catalogues and order forms with ecommerce storefronts. However, trying to get them online could be a real challenge.

where businesses sell their products to buyers in bulk at a discounted rate through online platforms.

Online ecommerce platforms such as Amazon Business and Shopify allow B2B businesses to automate their manual selling processes which improve the buying experience through its efficiency and speed.

Dropshipping: Dropshipping is a model where businesses use ecommerce to sell products without ever actually stocking the items themselves. Instead, the catalogue items are purchased from a thirdparty supplier, usually a wholesaler or manufacturer,

Although digital advertising, content marketing and SEO are effective methods to drive traffic, increase revenues and ensure a good ROI, they are not nearly as effective without understanding B2B ecommerce needs.

Businesses have quickly realised that they need to choose the right model if they want to compete with established B2B ecommerce players in the market.

According to McKinsey, 83% of B2B leaders believe that omnichannel selling is a more successful way to prospect and secure new business than traditional 'face-to-face only' sales approaches. It says this is a notable sign of confidence, given the higher cost and hurdle of acquiring new customers.

Furthermore, the study states that two-thirds of buyers made clear they prefer a cross-channel mix, choosing in-person, remote, and digital self-serve interactions in equal measure. It is estimated that B2B ecommerce revenues are six times those of B2C. B2B ecommerce companies that want to succeed need a solid business plan, intuition, knowledge of their market and thorough understanding of their products and business models.

and shipped directly to the customer. This means the business doesn't have to stock or own inventory.

This model provides a lower-risk approach for businesses to trial new products without having to purchase them upfront.

White-labelling: White-labelling is an ecommerce model that allows a B2B company to sell their products under another online company platform.

White labelled companies allow your business to place your brand on the ecommerce platform and have the operation and management of the platform handled by the second company.

This ecommerce model allows your company to expand your client base, increase the distribution of your products, and reduce time and resources spent on marketing initiatives.

Subscription model: This is the perfect model for businesses that sell products or service on a recurring subscription revenue. The subscription model ensures a steady, recurring revenue stream.

It also allows businesses to enhance their products and services to suit their customer's needs.

Various ecommerce business models

Ecommerce isn’t just about digitising old sales processes; it's more about reinventing it for future growth. To choose the right B2B ecommerce model, one needs to put the customer at the heart of every decision. The digital experience must reflect the brand and satisfy all the customer’s needs. 

One of the biggest challenges for newcomers is understanding the various ecommerce business models and how they are set up. Here are a few examples: Wholesaling: Wholesale ecommerce is a model

Making the right choice

sabusinessintegrator.co.za 47

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EMPLOYMENT EQUITY

Employee induction a vital step for productivity & job satisfaction for people with disabilities South Africa’s progressive employment equity legislation has not gone far enough to enable people with disabilities to fully integrate into workplaces and perform their jobs optimally.

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EMPLOYMENT EQUITY

In a recent study co-published by Dr Armand Bam, Head of Social Impact at the University of Stellenbosch Business School (USB), it was found that South African businesses are failing to meet regulatory targets for the employment of people with disabilities, while disillusionment with workplaces that do not accommodate their physical, social and professional needs contributes to the growing unemployment and underemployment of disabled people.

“Rather than focusing on legislative compliance and regulatory targets, employers need to re-think

Disabled people want seamless integration

how they define inclusion and provide an enabling working environment that supports disabled people’s integration and productivity from day one,” says Dr Bam. “If employers and managers improve their people management processes around recruitment, hiring and induction of people with disabilities, and develop an inclusive organisational culture rather than simply focusing on legal compliance, they are in turn more likely to meet their employment equity targets,” he adds.

“It is also crucial that people with disabilities are able to decide for themselves about disclosure of their disability, and that they are able to provide their first-hand input in orientation processes, rather than having experts give ‘disability awareness’ talks to their co-workers,” he said.

Dr Bam also cautioned that when people with disabilities feel pressure to appear 'normal' in order to be accepted, they often strive to exceed expectations of their abilities. In addition to fatigue, frustration and lack of job satisfaction, they also potentially place themselves at risk when they try to “exert themselves beyond their physical capacity” or perform in the same way that people without disabilities can.

“With rising unemployment in South Africa and employment rates of disabled people declining, off an already low base, we need practical strategies to achieve meaningful inclusion in the workplace and economic participation in society. This is all the more relevant for people with disabilities, whose unique needs are too often overshadowed by the structural problems affecting employment and economic empowerment that impact the majority.

Research on disabled employees’ experiences of inclusion Dr Bam, together with Prof Linda Ronnie of the UCT Graduate School of Business, researched disabled employees’ experiences of inclusion, from recruitment to orientation and their first six months on the job.[i] They aimed to better understand the challenges that hinder disabled people’s economic participation and caused many to abandon formal employment altogether.

Employee induction and orientation sets the tone for the employer-employee relationship, relationships with co-workers, and the nature of the working environment.

For people with disabilities, this initial experience influences their sense of acceptance and integration in the workplace, as well as productivity and job satisfaction.

Dr Bam’s research showed that what disabled people want most is “seamless integration” and to be actively involved in decision-making about how their disability is disclosed to co-workers and how their induction into the organisation is managed.

“They want to be able to slot in beside their coworkers without fanfare or special processes. Their ability to do this is dependent on an organisational culture of acceptance rather than focusing on differences and narrow definitions of ‘normal’.

Employers often confuse equality with equity “If South Africa is to build a truly inclusive society, people with disabilities must take their rightful place in the mainstream of the economy,” Dr

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EMPLOYMENT EQUITY

Bam says. "Employers often confuse equality with equity”.

“Prioritising equality by mistakenly attempting to treat people with disabilities ‘like everyone else’ might be well-intentioned, but it fails to achieve equity.

“Equity means recognising that all people have different circumstances and needs, accommodating the unique challenges of people with disabilities, and allocating the support and resources that enables them to succeed.”

the needs of people with disabilities would contribute to a sense of community and inclusive organisational culture.

Recommendations

technology in place before their first day at work.

“Managers who engage earlier with people with disabilities to understand their needs before arrival contribute to them being confident employees and improve their chances of integration into the organisation,” Dr Bam says.

Disabled employees who participated in the research were uncomfortable with structured, generic 'disability awareness or sensitisation' programmes, feeling these were more aimed at allaying the concerns of non-disabled employees than addressing issues faced by people with disabilities.

Dr Bam recommends that people with disabilities be given the space to share their own experiences and needs first-hand during induction programmes.

Disclosure: Having control over the way their

Based on the findings of the research, Dr Bam offers a number of recommendations for employers and managers to promote better employment experiences for people with disabilities, with the aim of achieving a more diverse workforce and truly inclusive organisations including: • the appointment of a disability champion to promote and account for disability equity within the organisation; • the development of more inclusive recruitment and orientation practices, enlisting co-workers for support; and • the active involvement of people with disabilities in shaping onboarding processes.

A disability champion should be drawn from top management, says Dr Bam, “to overcome some of the broad challenges related to organisations not understanding or being attuned to the needs of people with disabilities”.

The disability champion would develop an understanding of the 'disability landscape' within the business and develop employment strategies and policies to recruit, place, and retain disabled employees.

Dr Bam says that managers, responsible for employment of people, were critical to the work experiences of people with disabilities.

As managers play a key role in organisational cohesion, developing their understanding of

52 sabusinessintegrator.co.za

Further practical steps Dr Bam recommends include:

Induction and orientation: Preparing for the arrival of employees with disabilities even prior to induction day is the first step to inclusivity.

Employers are advised to consult with the new employee and have necessary alterations to the physical environment or provision of assistive

Prioritising equality by mistakenly attempting to treat people with disabilities ‘like everyone else’ might be wellintentioned, but it fails to achieve equity.

EMPLOYMENT EQUITY

disability is disclosed allows people with disabilities to directly address any fears or stereotypes held by their co-workers.

In contrast, Dr Bam says, people with disabilities experience a sense of betrayal and disempowerment when their disability is disclosed to others without their consent.

Support from co-workers: While people with disabilities prefer to 'blend in' to a new work environment and the existing ways of doing things, some might also need assistance from coworkers.

Assigning a mentor or using a 'buddy system' could be helpful, Dr Bam says, but the new employee’s manager also needs to be available during the induction period to provide reassurance and an opportunity for the employee to raise any concerns about accommodation of their specific needs.

The research participants experienced “high

levels of anxiety and frustration when managers were unavailable during their orientation”, he adds.

“This created unnecessary tension between disabled employees and their co-workers who did not know how best to assist them.”

Dr Bam says that managers need to balance the needs of the disabled person with ensuring that an employee assigned to assist is properly equipped to do so.

“There is sensitivity and acceptance needed on both sides when a disabled person is reliant on others to facilitate their inclusion and so has to discuss their personal needs with a relative stranger.”

Lastly, Dr Bam stresses that employees with disabilities who participated in the study wanted to “be accepted on their own terms by fellow employees and managers and be seen as individuals in their own right”. 

All information and recommendations in this article are drawn from Dr Bam and Prof Ronnie’s findings, published as: Bam A & Ronnie L. Inclusion at the Workplace: An Exploratory Study of People with Disabilities in South Africa. International Journal of Disability Management, Vol 15, 2020, e6. https://www.cambridge.org/core/journals/international-journal-ofdisability-management/article/abs/inclusion-at-the-workplace-an-exploratory-study-of-people-with-disabilities-in-south-africa/D60BCC316578054E3E1605222C465883#

sabusinessintegrator.co.za 53

GROWTH & INVESTMENT

How socio-economic realities

in South Africa impact on growth and investment

The international evidence on the relationship between economic growth, stability and levels of inequality among the citizens of a country is quite clear – the more equal a society, the more likely it is to be stable and the more likely the society is to have higher levels of economic growth (Wilkinson and Pickett, 2009). Conversely, high levels of inequality are a barrier to economic growth and social stability (Francis, Valodia and Webster, 2020).

By Professor Imraan Valodia and David Francis, Southern Centre for Inequality Studies, University of the Witwatersrand

54 sabusinessintegrator.co.za

Prior to the Covid-19 pandemic, which has had a devastating impact on the country, the socioeconomic situation in South Africa was already precarious. South Africa is one of the most unequal countries in the world. The Gini co-efficient is the most common measurement of levels of inequality. The Gini is an index between 0 and 1 which measures the distribution of income in a country and shows how the distribution of income differs from total equality, measured as zero and total inequality, measured as 1, where only the top income earner would get all of the income in that country.

GROWTH & INVESTMENT

SA has possibly the highest levels of income inequality across the globe South Africa’s Gini co-efficient is estimated to be 0.63, which makes us one of the highest in the world (for countries that have such data) (Sulla and Zikhali, 2018). This means that South Africa has possibly the highest levels of income inequality across the globe. It also has the highest inequalities in wealth.

Recent research by Aroop Chatterjee, Léo Czajka and Amory Gethin of the Southern Centre for Inequality Studies and the World Inequality Lab finds that the poorest 50% of South Africans have an average net wealth of negative R16 000. That means their assets are less than their liabilities; they are deeply in debt. The richest 10% of South Africans, by comparison, have an average net wealth of R2.8 million per person (the top 1% have an average net wealth of R17.8 million per person) (Chatterjee, Czajka and Gethin, 2020).

Furthermore, progress on poverty reduction in South Africa has stalled in recent years. A continual decline in poverty was one of the successes of the post-Apartheid state. But since 2011, poverty rates have started to increase, and per capita incomes have fallen for several years (Sulla and Zikhali, 2018).

Large number of jobs permanently destroyed by the pandemic

on our economy and society.

The graph (on the right hand side) shows employment in South Africa. In essence, South Africa has lost all of the, admittedly limited, job growth that we have seen over the 2010-2020 period.

vulnerable in the labour market, disproportionately occupying low-paid and precarious positions.

It is clear that, even before the pandemic, South Africa faced formidable socio-economic challenges in the form of the often-cited triple challenge of poverty, inequality and unemployment. The Covid pandemic has exacerbated all three aspects, and it has also highlighted the macro-economic conundrum which South Africa faces (Sachs, 2021).

SA needs higher rates of investment to achieve necessary growth Briefly, the conundrum is that South Africa needs higher rates of investment in order to achieve the Employment in South Africa 2008 - 2021

17 000 16 500 16 000

Employment (000s)

These alarming statistics have been made much worse by the way in which the pandemic has impacted

While we are likely in the short term to see some recovery in employment numbers, what is quite clear is that a large number of jobs have been permanently destroyed by the pandemic and its associated lockdowns.

The country’s inequality crisis has been compounded by the distribution of these job losses. Recent research has found that job losses have disproportionately affected women and those working in the informal sector (Casale and Posel, 2020; Francis, Ramburuth-Hurt and Valodia, 2020).

Both these groups are already among the most

15 500 15 000 14 500 14 000 13 500 13 000 12 500 12 000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: (Statistics South Africa, 2021)

sabusinessintegrator.co.za 55

GROWTH & INVESTMENT

growth necessary to address these challenges.

Both private sector and public sector investment has dropped precipitously over the last decade or so. It is very worrying that this has happened while government expenditure was actually increasing and debt levels have been rising.

Some would argue that in order to increase investment, the debt trajectory needs to be stabilised, but the reduction in government consumption required to do this is in itself bad for growth (Joffe, 2021).

Furthermore, the country’s socio-economic

A new social pact will need to be ambitious if it is to address the multiple crises we face. Perhaps most importantly it would need to generate growth in a pattern which benefits lower income groups and does not exacerbate inequality, as we have seen in the post-Covid recovery in much of the world.

The upheaval of the pandemic makes it possible for a new social pact to be realised.

Doing so, however, will require a more inclusive approach to social dialogue, which includes the unemployed and the informally employed, who

challenges themselves are a constraint: the high levels of inequality and socio-economic disparities are part of the reason why we have very little consensus on how to get out of the economic and social mess.

are currently excluded from the tripartite alliance at NEDLAC (Francis, Valodia and Webster, 2020).

The magnitude of our socio-economic challenges mean that this is now an imperative. 

A new social pact is imperative What is urgently needed is a new social pact, but this will not be possible unless all parts of society recognise the need to bargain and make concessions (Francis, Valodia and Webster, 2020). The costs of such a social pact need to be shared equitably, not equally, and should not fall disproportionately on the poor and marginalised.

Mr David Campbell Francis: Deputy Director at the Southern Centre for Inequality Studies

Professor Imraan Valodia: Dean of the Faculty of Commerce, Law and Management at University of the Witwatersrand, and Director of the Southern Centre for Inequality Studies

REFERENCES Casale, D. and Posel, D. (2020) Gender and the early effects of the Covid-19 crisis in the paid and unpaid economies in South Africa. Working Paper 4. Cape Town, p. 25. Available at: https://cramsurvey.org/wp-content/uploads/2020/07/CasaleGender-the-early-effects-of-the-COVID-19-crisis-in-the-paid-unpaid-economies-in-South-Africa.pdf (Accessed: 3 November 2020).

Chatterjee, A., Czajka, L. and Gethin, A. (2020) Estimating the Distribution of Household Wealth in South Africa. SCIS Working Paper 3. Johannesburg, South Africa: Southern Centre for Inequality Studies, Wits University. Available at: https:// www.wits.ac.za/media/wits-university/faculties-and-schools/commerce-law-and-management/research-entities/scis/documents/Estimating%20the%20Distribution%20of%20Household%20Wealth%20in%20South%20Africa.pdf (Accessed: 7 June 2020).

Francis, D., Ramburuth-Hurt, K. and Valodia, I. (2020) ‘South Africa needs to focus urgently on how COVID-19 will reshape its labour market’, The Conversation, 20 June. Available at: https://theconversation.com/south-africa-needs-to-focusurgently-on-how-covid-19-will-reshape-its-labour-market-141137 Francis, D., Valodia, I. and Webster, E. (2020) ‘Politics, Policy and Inequality in South Africa under Covid-19’, Agrarian South: Journal of Political Economy, 9(3).

Joffe, H. (2021) ‘Godongwana’s policy statement leaves many questions’, BusinessDay, 15 November. Available at: https://www.businesslive.co.za/bd/opinion/columnists/2021-11-15-hilary-joffe-godongwanas-policy-statement-leaves-manyquestions/ (Accessed: 16 November 2021).

Sachs, M. (2021) Fiscal Dimensions of South Africa’s Crisis. Working Paper Number 15. Johannesburg: Southern Centre for Inequality Studies, Wits University. Available at: https://www.wits.ac.za/media/wits-university/faculties-and-schools/ commerce-law-and-management/research-entities/scis/documents/Sachs-2021-Fiscal%20dimensions%20Working%20Paper%2015.pdf.

Statistics South Africa (2021) Quarterly Labour Force Survey Quarter 1: 2021. Statistical Release P0211. Pretoria, South Africa: Statistics South Africa. Available at: http://www.statssa.gov.za/?page_id=1854&PPN=P0211&SCH=72943 (Accessed: 12 July 2020).

Sulla, V. and Zikhali, P. (2018) Overcoming Poverty and Inequality in South Africa: An Assessment of Drivers, Constraints and Opportunities. Washington: International Bank for Reconstruction and Development/The World Bank. Available at: http://documents.worldbank.org/curated/en/530481521735906534/pdf/124521-REV-OUO-South-Africa-Poverty-and-Inequality-Assessment-Report-2018-FINAL-WEB.pdf.

Wilkinson, R.G. and Pickett, K. (2009) The spirit level: why more equal societies almost always do better. London: Allen Lane.

56 sabusinessintegrator.co.za

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HEALTH & SAFETY

Championing local manufacturing

in workplace safety solutions

BBF Safety Group, with its head office in Pinetown, KwaZulu-Natal, is an integrated workplace safety solutions provider that helps customers create safe working environments. BBF was formed on the basis of championing local manufacturing, procurement and SMME development – an objective more relevant than ever to get the South African economy back on its feet.

58 sabusinessintegrator.co.za

HEALTH & SAFETY

In 2014, four of South Africa’s largest safety footwear manufacturers joined forces to create BBF Safety Group (Pty) Ltd. The merger created the largest safety footwear manufacturer in Africa.

Since then BBF has transitioned to being an integrated workplace safety solutions provider offering a full portfolio of head-to-toe Personal Protective Equipment (PPE) and SHEQ services, including training.

BBF is a proudly South African business, employing more than 1 200 people at four ISO:9001 accredited manufacturing facilities

highly committed, professional and efficient local suppliers and distributors.

The company continues to strive to service the safety needs of industries both domestically and abroad, while playing its part to drive the South African economy; through both its own manufacturing and services, as well as the suppliers and business partners with whom it works.  www.bbfsafety.com

across the country.

Solutions throughout the various PPE categories BBF’s safety footwear portfolio includes well-known brands such as Lemaitre, Frams, Sisi and South Africa’s market-leading Bova range. As part of the portfolio, Wayne gumboots has long been established as one of Africa’s leading gumboot manufacturers, having serviced the South African market for 80 years and counting.

The company also manufactures workwear, Fall Arrest systems and specialised thermal protection wear, while the Nikki brand of hard hats and face masks is well-established in the head and respiratory protection categories. As an entity BBF is able to supply solutions throughout the various PPE categories, actively working to industrialise and localise ranges as far as possible.

Industrialisation, transformation & development BBF Safety Group’s mission has been to ensure economic empowerment, transformation and development in South Africa, forging partnerships with local SMMEs, both upstream and downstream of the supply chain, to create a network of

sabusinessintegrator.co.za 59

HOW WE WORK

Hybrid, borderless offices & big shift in culture: 5 Things to know about work in 2022 The pandemic has been described as our “once in a generation...opportunity to reimagine how we work”. While work-fromhome (WFH) is perhaps the most pervasive change, experts believe that a number of other factors will impact work in 2022.

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HOW WE WORK

Hybrid models will become more ubiquitous The workplace remains a highly contested space. After nearly two years of pandemicrelated flexibility around where we work, it’s clear that simply going back to the office in the traditional nine-to-five sense is not an option in 2022.

As such, hybrid work models offer the ideal 'middle ground' between working from home and returning to the office full-time.

“A hybrid model, when approached with structure and thoughtfulness, can be very successful. It’s a progressive way of working, and should be embraced and enjoyed. In my experience, when people feel comfortable and understood, they deliver some of their best work,” says David Seinker, founder and CEO of The Business Exchange, whose serviced office space offering has been promoting hybrid work models for years.

Seinker explains that the hybrid model also offers significant benefits for companies concerned about being tied down by long, inflexible leases in the current fast-changing world of work.

“If they choose the option of a fully-serviced, professional office in which to pursue this hybrid approach, they can save on rental costs through more efficient utilisation of space and associated costs, including large fit-outs, furniture and even IT infrastructure,” he says.

Mental wellbeing must become a priority Awareness around mental health in the workplace is growing – and rightly so, as one in every six South Africans suffers from a mental illness. As such, mental health protection should be a responsibility shared by the individual, family, friends and employers.

Matt Poladian, VP of People at Liferay, believes supporting mental health should be motivated by empathy which demonstrates a genuine concern for the ideas, feelings, and life experiences of others.

“The best way to build empathy is to listen intently to your people and proactively ask questions to learn more about what is going on with them,” he says.

Poladian adds that empathy is essential for building an environment where all employees feel safe and comfortable.

“This is critical not just for the employees’ well-being but also for an organisation's creativity and productivity.”

Renewed focus on company culture In many instances, company culture has been another casualty of the pandemic as companies have found it challenging to maintain a culture in instances where the majority of employees

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HOW WE WORK

Borderless offices help to define work as a thing we do rather than a place we go, with productivity as the bottom line rather than physical presence.

were working remotely. But culture is key to a company’s success and deserves to be prioritised, irrespective of where teams are located.

Fostering the right company culture has been an important part of SweepSouth’s toolbox in building one of the fastest growing tech start-ups in the country.

“Having a great company culture plays a powerful part in a company’s success,” says SweepSouth CEO and co-founder, Aisha Pandor.

“It’s a driving force in how you do business and has a big impact on how you develop strategies.

It also creates focus among your employees and engenders a feeling of identity.”

SweepSouth launched in 2014, and early on set their company culture to embody specific principles. All employees are expected to follow those, and the company has added adherence to them in their yearly KPAs. Despite being separated by working from home during the pandemic or sheer geography (the company now operates in Kenya and Nigeria, too) all employees embody the same key values, which include delivering quality work, and being respectful, innovative, flexible and trustworthy.

The rise of the borderless office The pandemic has shown that remote and hybrid working can be effective and it has also accelerated a shift towards the more widespread adoption of borderless offices. Borderless offices

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help to define work as a thing we do rather than a place we go, with productivity as the bottom line rather than physical presence.

Hayley van der Woude, MD at integrated PR and marketing agency Irvine Partners believes the borderless office concept has the potential to strengthen and enhance a company’s offering and shares that their own experience of borderless offices has been very positive.

“We have teams across six territories in Africa and the UK, which means we draw on a rich variety of skills, experience, expertise and cultural insights. As a result, our output is more dynamic, more inclusive and ultimately more relevant, which is of great benefit to our clients,” she says.

Hiring for soft skills, not technical knowhow The 'right' skills are often touted as the answer to many of the world’s employment and innovation challenges.

“Too often we are made to believe that a particular set of skills is the silver bullet that future proofs a career, but the reality is far more nuanced than that,” says SizweSihle Dlamini, Customer Experience Director at Hoorah Digital.

He believes that the social skills needed to thrive in the Fourth Industrial Revolution (4IR) economy are the ones that deserve more attention.

Typically referred to as 'soft' skills, these are the skills that allow you to influence decision making and get stakeholders on board with a more customer-centric way of doing things, as one example.

But most important, according to Dlamini, “is the ability to constantly learn, unlearn and relearn will be the skill we most value in a tech-enabled future. And it starts, simply, with a mindset that values the utility and importance of a fluid approach to learning.” 

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INFORMATION & COMMUNICATIONS TECHNOLOGY

How businesses can help

build the next ICT generation

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INFORMATION & COMMUNICATIONS TECHNOLOGY

With 34.4% of citizens unemployed and the majority of that (74.8%) being youth aged between 15 and 24, combined with the fact it is no secret that South African businesses have a major skills deficit in the next generation of our workforce, organisations have an immense opportunity to make an impact.

Prudence Mabitsela, founder and Managing Director of Dynamic DNA, a leading training and skills development company empowering Africa’s ICT generation believes by employing more youth in Information and Communications Technology (ICT) businesses can propel Africa into the future,

have received is incomplete in terms of soft skills, such as communication and etiquette, to properly equip them to be productive members of a team.

However, you have ambitious technically qualified young workers who – due to inexperience – are unable to get a start in the industry.

bridge the skills deficit of our workforce, close the gender divide, and help the unemployment gap.

She shares three ways companies can participate to advance women in the industry.

Dynamic DNA’s learnership programme offers young learners the ability to pursue a career in the ICT sector with special focus on upskilling and facilitating workplace placement for their graduates. In addition to providing technical skills, they focus on practical and soft skills such as communication skills, work etiquette, time management, presentation skills, and more elements essential to them creating fulfilling careers.

Dynamic DNA graduates can build innovative solutions across multiple technologies, both onpremises and in the Cloud. They learn the skills to design and build agile applications in a complex business environment making them a valuable asset to the workforce.

1. Learnerships The challenge in learnerships is twofold: firstly, companies have to deal with the administrative challenges associated with SETA applications, learnership hiring, management of the learner, training, reporting, admin, document records, auditing and then the successful absorption or placement of the learner.

Employing young highly skilled individuals means not only hiring employees with the necessary skills to improve their businesses but also improving their B-BBEE score, getting tax rebates, and most importantly sustainably transition into the digital economy.

“Our role as the facilitators of these learnerships benefit both parties. For companies we handle the full suite skills development solution necessary from hiring, SETA admin, reporting, mentoring, training, and placement – taking away the burden of learnerships which is often a big inhibitor to the process,” says Mabitsela.

Secondly, a challenge that we often hear businesses facing when it comes to employing young team members is that the education they

2. 4IR4Her Mabitsela has heeded the call and is leading from the front by empowering women in ICT through the 4IR4HER movement. 4IR is the term given for the profound period of transition we find ourselves in. The Fourth Industrial Revolution, 4IR, or Industry 4.0, refers to the rapid change to technology, industries, and societal patterns we see due to increasing interconnectivity and smart automation.

As a democratising force, 4IR is potentially powerful and could provide women with the opportunity to compete in the knowledge economy. However, this will only if happen if

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INFORMATION & COMMUNICATIONS TECHNOLOGY

ICT skills are greatly needed to build our economy and there are many scarce skills that are needed to do this.

you see risks in your business, what contingency plans you need and so on.”

3. Pay your device forward

adequate attention is paid to existing gender divisions and equal opportunities are assured.

“Having come from humble beginnings growing up in Soweto, I believe in shaping the

Mabitsela is a firm believer that Covid-19 should not become yet another barrier black women have to overcome to receive the education they are entitled to. However, there is no doubt that Covid-19 has affected learning and skills development around the world because of how the education landscape hybridises digital learning training. It is the responsibility of businesses to ensure our

future and enriching lives by developing and empowering young black women by giving access to education and showing what is possible in my career,” says Mabitsela.

“When people look at black women excellence, they want to see a picture. There is a gap for women to take on powerful positions in business, in the technology sector and entrepreneurship and yet we see few successful women who have made it in the industry. I want to change the narrative for young women to one where you do not need to be interlinked to a man to become successful.”

As the chairperson of the non-profit 4IR4Her – a Dynamic DNA programme that brings women empowerment, female youth, and women in tech together – Mabitsela is intentionally moving womankind towards different 4IR tech opportunities in streams like robotics, artificial intelligence, cybersecurity and UX/IX by assisting them to equip themselves with key skills for the future. Currently there are 15 women in the programme.

“It is a crucial part of the learning journey to be paired up with an entrepreneur that is successful in the tech or business space to learn the key lessons you can never be taught in a book. How to manoeuvre through your day as a businesswoman, how to diversify revenue streams if you are self-employed, what do you do when

underprivileged youth don’t get left behind.

In response to this shift in the landscape, Dynamic DNA in Partnership with the COMETSA Friends & Supporters Club NPO and Kaya FM, launched a campaign that will enable learners from disadvantaged communities to access online training. The campaign calls for individuals and corporates alike to ‘Pay Your Device Forward’ and donate new/old devices like laptops, smartphones, WiFi routers and tablets to enable continuous skills development for the disadvantaged youth.

Determined to be an icon for hope, Mabitsela is leading the charge by empowering women to empower others by equipping young previously disadvantaged women with the right skills for the future.

“ICT skills are greatly needed to build our economy and there are many scarce skills that are needed to do this. I believe the business and ICT sectors could drive youth employment through technology skills if they wanted to,” Mabitsela says.

"When you look at the employment challenges within South Africa today, the predominant reason why our statistics are so high is because of a lack of skills in industries related to the 4IR that is booming, she adds.

"Businesses need to set up sustainable ways to digitise and young people need to be fully equipped with skills that will still be relevant over the coming decades." 

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RetentionFund Federated

E

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Project start Milestone 1

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Milestones occur either periodically throughout the duration of the contract (i.e. stage of completion) or once-off at the end of the project.

As the funds are kept within the Retention Fund in safe custody, interest is earned by clients on the retention fund balance.

A retention is held as an alternative to the agent using a performance guarantee.

The product can also be used to hold deposits in a similar way to an escrow account.

This product has been in existence for a number of years and managed within the FEM Finance team structure, through an internally developed software tool. Over the years, FET has built strong relationships with its clients, through its quality service quality and efficient.

For further information: retentionfunds@fema.co.za | www.fem.co.za | 011 359 4300

INVESTMENT

How property investing

can chip away at the wealth gap The wealth gap is growing and shows little sign of abating, and what’s more, the Covid-19 pandemic has fuelled this inequality further.

According to Oxfam, from 18 March 2020 to 31 December 2020, global billionaire wealth increased

by US$3.9 trillion, while millions of average people – those not part of the extremely wealthy 1% – faced job losses, salary freezes and other financial challenges.

The Credit Suisse Global Wealth Report found that the world’s richest 1% (those with more than US$1-million) own an extremely unequal 43.4% of the world’s wealth.

One of the ways the very rich have built and maintained their wealth is through property ownership. Wealth Migrate CEO, Scott Picken, sums this up succinctly: “This is what the wealthiest people have done for centuries and there is a

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reason that there is a saying, ‘he who owns the land is King'.”

Real estate more valuable than all equities and debt securities together New research released by Savills as part of its Impacts 2021 programme found that during 2020 the value of the world’s property assets rose 5% to US$326.5 trillion. This makes real estate more valuable than all equities and debt securities together, and almost four times global gross domestic product.

Institutional property investments offer investors a steady stream of income, but for most investors, these opportunities are inaccessible due to wealth

INVESTMENT

inequality. One of the best ways to breach the wealth gap is through the use of technology – online investing platforms, including Wealth Migrate, allow the 99% access to assets and opportunities otherwise reserved for the 1%.

Connecting investors and property partners “Wealth Migrate helps to break down many of these barriers to entry by connecting investors and property partners without the added cost of middlemen and allowing investors to invest directly in property in the UK, the US and Australia and then earn US dollars, Australian dollars and pounds,” Picken says.

The Fin Tech solution allows members to gain financial security, and this is “why we want to give at least 25% of the world’s population a way to drive wealth creation by 2030”, he adds.

Crowdfunding, which uses the momentum of a group investment, has been made possible by technology – allowing each member to punch above their individual weight.

As inequality grows and with-it widespread dissatisfaction, getting more people to invest in real estate and then reap the asset class’s incomegenerating returns can make a real difference by significantly reducing the wealth gap.  www.wealthmigrate.com

sabusinessintegrator.co.za 69

MANUFACTURING

Can SA revitalise its manufacturing capabilities?

Many industries are reliant on imports as part of the manufacturing supply chain, but is there potential for SA to optimise its manufacturing capabilities to assist in streamlining production locally in a cost-effective manner?

And if so, what is required? Philippa Rodseth, Executive Director at Manufacturing Circle provides some insight.

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MANUFACTURING

What is the current state of the manufacturing industry in South Africa?

Manufacturing, with its strong multiplier effects on value addition, job creation, export earnings and revenue generation, is the engine of growth for our economy.

However, manufacturing is currently experiencing challenges evidenced by its declining contribution to GDP. In 2008, the manufacturing sector’s contribution to GDP was 15%. This figure was sitting at around 11% at the end of 2020. International experience shows that for South Africa’s stage of economic development, manufacturing could contribute up to double this level.

It was reported that South Africa is producing less now than it was a decade ago. What is the reason for this?

There are many factors that have contributed to the premature de-industrialisation of our country.

These include electricity supply constraints, rapid increases in administered prices, labour and political instability and competition from unfairly incentivised imported products.

What role does current legislation/policy play?

In 2008, the manufacturing sector’s contribution to GDP was 15%. This figure was sitting at around 11% at the end of 2020.

Policy and legislation play an important role in providing the framework and guidelines in which industry can operate. To drive industrialisation, many government departments play a role including the Department of Trade, Industry and Competition (DTIC), Department of Mineral Resources and Energy (DMRE) and the National Treasury. We find that in some areas; policy, legislation, and implementation is not always consistent and aligned.

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MANUFACTURING

It is often said that manufacturing costs are higher in South Africa.

Why is this and what can be done to mitigate this?

Our member companies note high costs relating to ports, rail and electricity.

Portnet tariffs are significantly higher than the world norm. This is a serious impediment to exports, and inflates import parity pricing. We need to improve port efficiency to reduce costs.

Much of our manufacturing is located in Gauteng, with associated costs in transporting raw materials to the point of manufacture. We advocate for the reinstatement of rail subsidies for containers destined for export to overcome the inland location disadvantage of much of our manufactured product.

Electricity costs have increased considerably, driven by tariffs at an Eskom level and in some cases compounded by additional costs added at municipal level. We accept that Eskom will never be sustainable without cost-reflective tariffs. And we accept that tariffs have been below what it costs Eskom to generate, transmit and distribute electricity. But we do believe that Eskom has to keep cutting those costs. We also need a better understanding of Eskom’s new tariff structures and tariff philosophy. Furthermore, at a municipal level, a backlog in maintenance and inconsistencies in charges and mark-ups need to be urgently addressed.

What is the actual decline in employment in the manufacturing over the last 10 years?

In 2008, the manufacturing sector employed 2.1 million people, contributing to 14% of all jobs.

In the second quarter of 2021, this figure had fallen to 1.41 million people, or 9.5% of all jobs.

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Manufacturing employment has declined by 700 000, or a third, over this period, and total employment provided by the sector has fallen below 10% for the first time on record.

Is there potential for SA to revive its manufacturing industry, and if so what steps are required to do so?

We do believe that this is possible. South Africa has a number of strong companies, many committed people and an infrastructure that if adequately enabled can drive growth, employment and equality.

Increasing demand for manufactured product is our highest priority. Many of our factories are operating under full production capacity.

To increase aggregate domestic demand, a commitment by both business and government to visibly support Proudly South African is important to increase the procurement of locally manufactured

MANUFACTURING

goods, provided their cost and quality are competitive. Retailers in particular should commit to clear labelling of products on shelf to ensure that consumers can make informed choices.

We also advocate the investigation by government of its options to invest in catalytic projects and infrastructure projects. An increase in the renewables component of electricity procurement, with solar and wind generation equipment manufactured in SA is also an important area worth investigating.

Furthermore, we need to increase our exports.

to be realigned to focus on delivering skills that are required for further training in areas with the highest potential for job creation.

We are also of the view that core jobs in production will shift from manual- to techintensive activities, requiring different skills sets. Demand for customised products will raise demand for skills in design and R&D. Fourth Industrial Revolution trends will not only disrupt traditional manufacturing jobs, but also jobs in design, development, and related services.

This dynamic is resulting in an increasing skills

This involves enhancing our competitiveness with particular reference to reducing port and rail costs.

gap, which is exacerbated by the emigration of highly skilled workers from SA shores alongside immigration restrictions for highly skilled foreigners. An additional challenge is that education is directed mostly at new entrants to the job market, rather than at existing workers.

We therefore suggest that the visa system for scarce skills is an important mechanism to allow for scarce skills to be deployed in SA, and suggest that requirements are linked to the duration of such visas and demonstration of skills transfer to SA citizens. 

Which manufacturing industries have the most potential in SA? The manufacturing sector is an ecosystem with complex and interconnected value chains, so it is not possible to ring-fence or highlight a particular industry. Having said that, opportunities presented by renewable energy infrastructure build are currently being explored.

Does SA have the human capital skills to compete on a global level or are there major skills gaps?

We have shortages of suitably trained artisans and middle management. This is the result of poor output from the schooling system, limited uptake into the Technical and Vocational Education and Training (TVET) system and incoherence between the programmes offered through the TVET system and the skills demands of the manufacturing sector.

In basic and tertiary education, general skills are prioritised. Industry-specific or technical skills are in short supply. The shortage of skills and the ageing of the available skills are key cost factors affecting the medium-term sustainability and expansion of SA’s industrial activity.

To address this, our education system needs

Philippa Rodseth: Executive Director at Manufacturing Circle

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POST-PANDEMIC RECOVERY: BPO

Global business recovery & reconfigured

post-pandemic business models

The consequences of the pandemic have affected business and markets all over the world, and at the same, has reshaped business and outsourcing trends. Aspects such as geographic diversification, budget optimisation, operational efficiencies, tech and digitization, work flexibility and globalisation all feed into how businesses handle their core business in the post-pandemic recovery.

“We are still facing a recessionary environment into 2022 and reducing costs and limiting risk are priorities. Businesses are looking for ways to scale and grow as markets recover after almost two years of pandemic mayhem, without taking on more risk in an uncertain and volatile environment,” says Clinton Cohen, CEO of iContact BPO. Cohen cites a surge in international business enquiries and deals closed by iContact BPO in Q3 of 2021, with the uptick unabated.

“There’s a distinct preference by organisations to outsource more of their processes and skills requirements than ever before in the post pandemic recovery. Key offshoring markets driving this trend are the US, Canada, UK and Australia, and South Africa is front and centre on their prospecting list as a BPO destination. A number of important market dynamics are driving this,” explains Cohen.

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The outsourcing trends likely to dominate in 2022-2023, according to iContact BPO include:

#1: Increase in outsourcing and contract hiring A prevailing sense of uncertainty in economies around the world sees many organisations reluctant to make permanent appointments. As demand returns, organisations are opting for contract appointments and outsourcing arrangements which gives them the flexibility to manage market uncertainty.

With strategic outsourcing arrangements, businesses get the scale and skills they need, on a lean and cost-effective basis as demand fluctuates.

There is also a return to core business principles as organisations look to do what they do best and outsource the rest. #2: Contact Centre skills shortages in emerged markets In emerged economies like the US and UK, finding

POST-PANDEMIC RECOVERY: BPO

skilled people to fill positions in contact centres is challenging. Low unemployment rates mean that competition with other job roles where there is a high transferability of contact centre skills is fierce. In some instances, government-provided unemployment benefits pay more than the minimum wage, providing a disincentive for people to work. Similarly, hourly pay for new hires in areas such as logistics, online shopping and the like exceed the finite hourly wages that onshore contact centres compete with, making these contact centres uncompetitive in terms of global labour realities.

These factors feed into South Africa’s appeal as a top offshoring destination. With a 50% unemployment rate among youth, South Africa has millions of educated young people in need of employment with English accents and linguistic capabilities amenable across many geographies.

The exchange rate also makes it particularly attractive. South Africa’s BPO providers can deliver

fully loaded services, including management time at up to 60% less than onshore delivery, at a time when businesses across the globe are under enormous cost pressures. The labour arbitrage benefits of South Africa are clear and likely to be a key driver in offshoring to the country. #3: Intelligent people and intelligent machines make for powerful insights AI developments in areas such as speech-to-text capabilities and sentiment analysis now allow BPO providers to deliver quality assurance and analysis at levels never seen before. Instead of randomised checks, every recorded conversation can be fed through speech-to-text, indexed and then run through AI to check whether all compliance requirements and customer needs were met and resolved appropriately.

Previously, QA on calls was done on a randomised, limited basis where a QA manager listened to each conversation and then drew up the

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POST-PANDEMIC RECOVERY: BPO

metrics and reporting manually. Now, thousands of calls are pulled through an automated and intelligent system that crunches in-depth and accurate reports in a matter of minutes, providing reliable, large samples for actioning and improvement.

The same can be done with webchats and e-mail data. When you take this level of data and analytics and AI and provide this to your client to layer over their value chain processes, BPO providers add incredible value by helping clients identify bottlenecks in the value chain, which are or

that while credit providers need to collect the debt and do so cost-effectively, they also need a datadriven and empathetic approach that maintains a positive relationship with their customers, many of whom find themselves defaulting on their financial commitments through no fault of their own. It’s a fine balance to strike and will see more outsourcing of this crucial yet delicate function to specialist collections partners.

could impact customer experience – the customer feedback of which ultimately manifests in the contact centre.

last months, not least of which is the fact that organisations need to diversify and manage their location, operations and HR risks following the fallout that the pandemic has had on business continuity plans and recovery.

We can expect to see a continued trend of diversifying geographic risks and ensuring that business processes and resourcing are spread across more locations that are not vulnerable to the same risks, at the same time. This trend will drive greater usage of BPO providers across geographies and time zones. 

#4: The timing of customer service has changed With the rapid digitisation of business and service processes brought about by the pandemic, and more businesses serving multinational markets, keeping up with an always connected, ‘always on’ customer requires a 24/7, multichannel service and support operation.

Very few businesses are geared for the scale of human resources, technology and security requirements to deliver on their changing customer service requirements. Many businesses also don’t have the appetite to upscale rapidly again in a still uncertain environment. This will drive the move to offshoring in 2022 and beyond, notably on sales, customer service and back-office/ technical support. #5: Businesses increasingly turn to collections BPO providers to boost cash flows With a greater need for intelligent data and analytics and solid collections experience in the current pandemic environment, more organisations are outsourcing their early-stage debt collections to BPO providers with proven track records.

One of the key reasons behind this is the fact

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#6: Geographic diversification is key There have been major learnings over the

www.icontactbpo.com

Clinton Cohen: CEO of iContact BPO

INTERVIEW: .ZADNA

.za domain namespace

sees surge of domain name registrations during pandemic

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INTERVIEW: .ZADNA

According to reports, local organisations have accelerated digital transformation projects in the past few years. While there is a plethora of digital platforms available for businesses, a website still remains critical to assist businesses connect to stakeholders. Molehe Wesi, CEO of the .za Domain Name Authority (.ZADNA) talks to SA BUSINESS INTEGRATOR about the crucial role it plays for businesses on a local and global level.

What are .ZADNA's key responsibilities?

Our mandate is derived from the Electronic Communications and Transactions Act (2002), through which the Authority has to administer and regulate the .za domain namespace. Furthermore, the Authority must ensure the namespace complies with international best practices, raise public awareness on various namespace issues, conduct research and advise the Minister on policy matters relating to the .za domain namespace.

Since the start of the pandemic, organisations have had to accelerate digital transformation. What has the impact been on .ZADNA? As devastating as the pandemic was on many organisations and individuals, it also accelerated others’ digital transformation and digitalisation journeys. As an effort to reposition themselves and ensure they ‘survive’ the effects of the

A .za domain name has several benefits for SMMEs, the main one being establishing their digital presence.

lockdown restrictions, most looked to the internet, which resulted in a surge of domain name registrations.

While websites and having a recognisable domain is standard for major corporations, what is the statistic when it comes to SMMEs? It is very difficult to determine this statistic; however, anecdotal data indicates that most SMMEs use free platforms offered by email and social media platforms.

How can using the .za domain assist SMMEs in gaining traction?

A .za domain name has several benefits for SMMEs, the main one being establishing their digital presence. Once this is in place it will translate to the accessibility of the SMME being improved and their brand being protected by South African legislation.

To help encourage SMMEs we have partnered with stakeholders to help empower small businesses through a variety of initiatives. An example of one of the initiatives we run is the Registrar Reseller Training programme, which aims to empower women, youth, persons with disabilities, SMMEs and Individuals on how to become a domain Registrar or Reseller. This training is offered free of charge and participants learn about the .ZA domain name industry and how to become a .ZA Domain Reseller or

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INTERVIEW: .ZADNA

As a regulator, we are able to change processes in line with legislation and without infringing on anyone’s constitutional right to enhance the protection of .za domain name holders.

Registrar. Through this initiative we aim to help empower SMMEs through information about the various opportunities available under .ZA namespace. As a socially responsible entity, programmes such as these play a critical role in enabling access to the industry to individuals who would not have previously had access to this information.

What are key opportunities for .ZADNA (and businesses) during this digital age?

There are many opportunities, but I will try to be concise. The first one is the prevalence of technology, which translates to improved access to it; this is technological innovation like cloud computing, automation, and cybersecurity, to mention a few.

If you take cloud computing, for instance, organisations can now remove the burden of infrastructure ownership from themselves so that they can focus on their core business.

These technological innovations have been shown to present organisations with a unique opportunity to reinvent their business models and operating models, or even start up new businesses.

What role does .ZADNA play in providing .za domain holders support for cyber security issues?

And, how does your experience in this field help .ZADNA enable proactive change in terms of cyber security?

Molehe Wesi, CEO of the .za Domain Name Authority (.ZADNA)

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As a regulator, we are able to change processes in line with legislation and without infringing on anyone’s constitutional right to enhance the

INTERVIEW: .ZADNA

protection of .za domain name holders.

We also use our international standing to influence international best practices and policy positions. My experience assists in guiding the solid and experienced team I have the privilege of leading. This team is being expanded with knowledgeable individuals that will continue protecting the South African domain namespace while we increase it.

With digitisation being at the forefront of the global world, how do you see the role expanding that .ZADNA plays?

The role of the Authority will be more crucial by providing enabling regulatory framework that improves the inclusion of the marginalised while we protect the vulnerable in the digital space and the .za domain namespace. 

What are some of the major highlights and challenges since you started at .ZADNA? The highlight would be experiencing the growth potential of the .za domain namespace, and this was crucial to show the Authority what is possible. We still have a lot of work ahead of us despite being the largest Country Code Top Level Domain Manager in Africa.

Of course, 2021 came with its challenges, one for the Authority being limited to conduct community engagements and outreaches, which is fundamental to our mandate. I know it could be argued that we could have used digital or virtual, but this would have excluded the majority of South Africans.

Molehe Wesi, .ZADNA CEO Molehe Wesi is the current Chief Executive Officer for the ZA Domain Name Authority, which is the ccTLD Manager of the .ZA namespace entrusted with the administration and management thereof. Wesi is an established ICT leader with a wealth of knowledge and experience; he also occupies oversight and governance roles in the Technical and Vocational Education space in South Africa. He is also an occasional contributor to Lesedi FM’s current affairs programmes as an expert on cybersecurity and 4IR.

About .ZADNA The .za Domain Name Authority (.ZADNA) is a not-for-profit organisation that manages and regulates the .za namespace. .ZADNA is accountable to the South African Department of Communications and Digital Technologies, but does not receive government funding. ZADNA strives to strengthen relations and engagements with the .za stakeholders and ensure that collaborative efforts are pursued, and the namespace remains competitive and robust. .ZADNA is committed to working closely with key stakeholders and facilitating engagements that drive the advancement of the .za namespace. Furthermore, .ZADNA collaborates with its key stakeholder through various means to ensure that its direct and indirect stakeholders, local and international partners, and .za collaborators across the globe contribute in matters of the South African internet space.

For more information, please visit: www.zadna.org.za

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Rand Mutual Admin Services (Pty) Ltd (CIPC Reg No. 2012/190552/07) is an Authorised FSP 46113 licensed with the Financial Service Board and forms part of the RAND Mutual Group of Companies

RISK MANAGEMENT & INSURANCE

Prevention is better than cure Considering the impact of the pandemic and the recent violent looting which resulted in the widespread destruction of property and businesses across South Africa, the first question many business owners and shareholders asked was: “Do we have insurance and are we covered for a major business interruption?”

By Claude Hamman, IRMSA Certified Risk Management Professional

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RISK MANAGEMENT & INSURANCE

Business interruption (BI) refers to any event that stops a business from trading or generating an income. Typical examples include fire, flood, explosion, and theft. BI is a catastrophe type of risk, meaning that it doesn’t happen often, but if and when it does, business owners need to ensure that they are prepared with good business continuity management and that their insurance policy will respond appropriately.

Prevention is better than cure, especially when it comes to insurance. Claims may be repudiated due to control failures that were said to be in place,

you wouldn’t be able to sell any food until it is replaced or repaired – a 100% loss of income.

may be applied in the event of asset values being understated. Claims may also take several weeks to be paid or the business may require expensive legal assistance to convince insurers that a claim is valid, resulting in further financial strain. The bottom line is that insurance is a financial safety net but there is a lot a business can do to mitigate risk before calling upon their insurer.

1.

What could the possible causes of income

Identifying risks Not only do you need to know and understand your business risks, but also those of the extended enterprise. Do you understand your supply chain exposure, and have you asked yourself what your customers and suppliers’ (extended enterprise) interruption plans look like, and what, from those plans, do you need to include and account for in your own BI plan?

Whether you are a small or big business, you need to consider what your insurable and noninsurable risks are. Start by identifying the major events that can cause your business to grind to a complete halt. Then determine the type of risks that can cause a partial loss of income. Every business and industry has a series of scenarios that have the potential of playing out. You can determine the risks thereof and prioritise those that can cause your income to completely cease operations for an extended period. By way of example, if you owned a fish and chips franchise and your fryer packs up,

Identifying income streams You need to consider all the revenue streams that your business survives on. This will enable you to determine what the impact and duration would be on the business’s finances if any or all of these become unviable, as well as identify the appropriate indemnity period.

Ask yourself these questions: shutdowns be?

2.

Are the causes deferrable or insurable?

3.

How will a loss of market share affect your income streams?

4.

How reliant is your business on external parties/ players?

5.

How long will it take to return to normal business operations?

Risk mitigation Developing a business continuity plan is a practical way of getting your business up and running and staying operational, in the eventuality of an adverse event. No business is too small to have a business continuity plan in place.

It could be the difference in a business recovering from an adverse event or not. Proper risk management informs your business continuity.

Consider each risk and the appropriate controls required to ensure that they remain within your appetite and tolerance for financial or reputational loss.

Risk management Risks are uncertainties in your business operations and operating environment. When an event occurs i.e. the risk materialises, you fall back on a business continuity management and disaster recovery plan. It is important to understand the context of

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RISK MANAGEMENT & INSURANCE

your unique business and the internal and external uncertainties it faces.

It is vitally important that risks are identified, evaluated against your risk appetite and treated to ensure the inherent risk exposure is reduced.

Unfortunately, even the best controls fail. We cannot have controls in place for every eventuality, but we can be prepared for most catastrophic events by remaining agile in our thinking and ensuring we have adopted good business continuity practices in a robust business continuity plan.

With the increasing adoption of widespread work-from-home strategies by organisations, the claims trends suggest that cyber-related events are increasing. Have you considered a Disaster Recovery Plan (DRP) that focuses on the continuity of Information Technology (IT)? How quickly are you able to start up again, in terms of servers, data, etc?

Your business might still be standing but will you be able to operate without your key operating system, communication infrastructure, and customer/ supplier information? Cyber risks, like hacking and data extortion, increase the need for effective DRP’s.

Risk transfer Risk transfer commonly takes place through an insurance contract or via an outsourcing contract to a third party. Consider insurable versus uninsurable risk carefully, you need an effective business continuity plan (BCP) for both insurable and uninsurable risks.

Often your insurer will insist upon effective BCP’s as this is key to reducing any downtime and reinstating normal operations as soon as possible.

Many previously insurable risks may become uninsurable or unaffordable. Already, we can see almost all types of infectious disease cover has been removed from insurance policies and we can expect significant increases in SASRIA and Political Violence related cover from 2022 onward.

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It is in your best interest to consider possible loss scenarios and how they will impact your business.

How resilient is your business?

In other words, how equipped is your business to handle adverse events? If you have a super resilient business with a continuity plan in place covering a multitude of eventuality and resource requirements, you will be able to adapt to any adverse event that materialises, activate your plan, and get on with business.

Are you prepared for the next uncertainty?

Often, we think of recovery only in terms of having the business up and running but we forget about the loss of market share and customers that will need to be converted back to your brand. This takes time. When an event occurs, you need to react as if you are uninsured and action your business continuity plan swiftly, so that you can get your business up and running.

If in doubt, speak to a specialist risk advisor for guidance on how to identify, evaluate, treat, and transfer risk effectively and in a cost-efficient manner. 

Claude Hamman, IRMSA Certified Risk Management Professional

www.veolia.co.za

HEADER TECHNOLOGY

SA leading

the African space race South Africa is leading the new space race in Africa and is set to grow its capability and the industry with an investment of over R18 billion in the coming years.

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TECHNOLOGY

According to South African National Space Agency (SANSA) CEO, Dr Valanathan Munsami, South Africa need not shy away from the spotlight as the leader of Africa’s space economy with its in-house capability to manufacture satellite technologies.

Dr Munsami notes that SANSA’s and therefore South Africa’s true value lies in its unique value proposition.

South Africa is also the only African country with a presence in Antarctica conducting ongoing space physics research and developing scarce engineering skills.

SA has a unique value proposition “South Africa is the only country in Africa capable of designing, building and finally manufacturing a satellite where our continental counterparts often go abroad to procure the same technology with the help of international partnerships,” he comments.

From a ground segment point of view, SANSA’s Hartebeeshoek ground station is by far the biggest in Africa with 70 different antenna systems which will be expanded even further in the next few years.

From an Earth observation point of view, SANSA’s data archive spans all the way back to 1972, which is the most extensive Earth observation data archive in Africa, and provides a valuable tool for government decision-making and planning for human settlements, food security and water management, disaster management, and safety and security.

New state-of-the-art facility for 24/7 operational Space Weather Centre SANSA has the only accredited Space Weather Centre in Africa. A new state-of-the-art facility for a 24/7 operational Space Weather Centre is currently under construction and will provide space weather information for various sectors across the African continent including the aviation industry.

South Africa is also the only African country with a presence in Antarctica conducting ongoing

space physics research and developing scarce engineering skills.

“All of these factors contribute to a unique baseline value proposition for the space economy potential of South Africa,” says Munsami. “Looking at these unique factors as a foundation for investment opportunities coming into South Africa and given our well-established infrastructure, South Africa, at least from a space economy perspective, now looks like the ideal investment opportunity going forward,” says Munsami.

Operational space missions are key for the future Dr Munsami says that operational space missions are key for the future with project life cycles that include high-level project management, engineering, and oversight of design and manufacture of complete satellites through contracting the industry for upstream development. This allows SANSA to also maintain high quality standards and to ensure that this capability becomes a significant asset to SANSA and the country. Space products and services also serve to improve the lives of all citizens.

Midstream he sees the Telemetry, Tracking and Command (TT&C) of launched satellites being managed in-house by SANSA in a setup not too dissimilar to the control centre seen at NASA during space missions.

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TECHNOLOGY

Significant investments will stimulate South Africa’s space economy According to Munsami, there are great opportunities downstream in products and services for the stimulation of industry growth and therefore job creation, through contracting of the local industry to build products and services based on the satellite imagery stored in valuable data archives. This means that the local space industry will be strengthened even further.

“Over the next few years we are looking at billions of Rands dedicated to a space infrastructure

component level of this pipeline enables South Africa to export this to the commercial market, so there are indeed, what Munsami describes as multiplying effects other than direct contracting to industry, that can be harnessed to stimulate increased industry growth to ensure a bright future for South Africa’s space economy.

The Department of Science and Innovation continues to invest in space related infrastructure that will drive innovation in the sector. In 2019 the DSI committed R70.89 million towards the establishment of a capability in operational

hub to the tune of R4.5 billion and a telecoms satellite costing between R5 billion and R6 billion,” says Munsami. “Investments in a new ground segment like the project in Matjiesfontein will cost roughly R3 billion and launch capabilities, which the Department of Science and Innovation is pursuing at a further cost of R4 billion. The approximate sum of these figures of the investment pipeline and funding are in the range of R18 billion,” he adds.

The leveraging factors as a result of localising the

space weather. This project is about two-thirds complete and received an acknowledgement of appreciation from the DSI Director-General for the progress made by SANSA to complete construction by the October 2022 deadline.

The ball is certainly rolling and there is no doubt that South Africa is cementing its positioning as the clear leader in the African space economy, with numerous growth factors to benefit the continent. 

Dr Valanathan Munsami, SANSA CEO

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About SANSA The South African National Space Agency (SANSA) is an internationally recognised and well-respected global player in its field, with close ties to space agencies and the private space industry around the world. SANSA was created to promote the use of space and strengthen cooperation in space-related activities while fostering research in space science, advancing scientific engineering through developing human capital, and supporting industrial development in space technologies.

SANSA undertakes operations in four thematic programme areas of Earth Observation, Space Engineering, Space Operations and Space Science.

Together they contribute towards positioning South Africa as a leader in Africa’s space sector.

SMMEs

Access to funding for

SMMEs demystified Access to funding remains a critical growth enabler for small businesses in South Africa, and access thereof, continues to be incorrectly viewed as a difficult, painful and slow process due to lack of knowledge regarding application processes and inadequate awareness of the compliance documents required by financiers, writes Gordon Malebo, ESD Strategist.

In order to demystify small business funding challenges, we have to encourage information sharing platforms that seek to: • Increase awareness of the funding processes; • Confirm the standard compliance documents required and the importance thereof in accessing business funding; and • Provide knowledge on maintaining the funding readiness of the business.

At the recent Anglo American Zimele Funding Workshops, featuring key partners that included ABSA, IDC, Guard Risk, Bopano Capital as well as SEDA, all the abovementioned points were noted. Through collaborations such as these we are able to unlock opportunities within the South African entrepreneurship development ecosystem.

Fundamentals crucial to accessing finance for small businesses The funding requirements are standard for all funders, and they will remain so for the near future. The requirements may slightly increase based on the complexity of the funding transaction.

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A crucial takeaway from the Zimele workshops was that the entrepreneurs should exercise good financial management discipline that can be evidenced through financial records.

SMMEs

To drive impact, it is important for business advisors, consultants, and development practitioners in various ESD programmes to instil good financial management discipline and recordkeeping skills to the entrepreneurs when providing mentorship/advisory services. This knowledge must be imbedded in the business processes through policy and systematic implementation.

All financiers emphasise the importance of the following documents as a prerequisite to unlocking funding, therefore, all entrepreneurs should always strive to have them at the tip of their fingers to achieve quick turnaround times in their funding applications: 1. Historical trading records • Annual financial records, showing historical trading performance.

• Management accounts, showing latest trading updates since the last annual financial report.

2. Future trading view • Cash flow projections, showing the future trading outlook for a minimum of 12 months.

It is important to provide assumptions to the projections so that the financier can understand the logic behind the numbers. It is also crucial to include sensitivity scenarios to evidence the level of consideration taken for possible risk factors that may have a negative effect on the trading performance should they materialise.

• Secured contracts/purchase orders should be provided to support the revenue figures indicated on the projections.

3. Directors financial position All company shareholder’s/directors’ personal ability to manage finances will be assessed via credit records (available through credit bureaus) and their financial positions through personal assets and liabilities statements. As an entrepreneur, it is important to guard against a poor credit record as this might render you and your business high risk to possible financiers or creditors.

Integrity remains a crucial element of the funding process, hence the importance of upfront disclosure of a poor credit history, the circumstances that led to the negative records, and pre-eminently showing steps taken to resolve the matter by providing (where applicable): • Rescindment of judgements; • Proof of settlement of the matter; • Active repayment arrangements with the creditor; and • Proof of adherence to repayment commitments.

For seamless access to finance to exist, entrepreneurs must have a clear understanding of the defined processes to be followed and have the necessary documents at the tip of their fingers to minimise delays in obtaining finance decisions from the funders.

Need help to access funding?

Zimele provides funding to qualifying entities within their host communities to the maximum amount of R5 million for Anglo related supply chain contracts. For any additional funding requirements above the threshold, as well as for non-Anglo supply chain contracts, access to funding is facilitated through ABSA’s alternative funding, IDC, and the performance guarantees through Guard Risk. Zimele is a registered credit provider with the National Credit Regulator.

All entrepreneurs are encouraged to make use of the local Zimele Business Hubs to gain assistance in processing their funding applications.

Anglo American Zimele Business Hubs are located within the various communities in which Anglo American mining sites are situated. These Business Hubs have been established to provide a variety of support services to local entrepreneurs including, amongst others, coaching and mentorship services. 

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ADVERTORIAL: NISSAN

The Legend Continues

Nissan continues its unyielding faith in the growth and success of South Africa.

Economies are built on big businesses; big businesses are built on small businesses and small businesses are built by entrepreneurs. This is the fundamental truth that Nissan understood since it began operations in South Africa over 50 years ago.

It’s fair to say, Nissan has had a fair hand in the foundation of small, medium and large enterprises in our continent.

In 1988, the first locally built units of the legendary

Nissan NP300 Hardbody rolled off the production line at the Roslyn factory and made their way to loading bays, construction sites and farms across 35 African

countries as well as to Russia, Ukraine, Lebanon and the UAE. Their legendary reputation for toughness,

reliability and above all, affordability, made them the bedrock of any fleet.

Now the legend continues with the much-awaited launch of the all-new Nissan Navara Single Cab, the spiritual successor of the mighty NP300. Since the Nissan Navara was introduced to the market in 1997, it has led the way in terms of innovation and performance. Now the latest generation of Nissan Navara promises even more, with outstanding progress in drivetrain development for increased power and efficiency, driver aids, safety and

annually. The positive impact of this investment extends to the

high-tech creature comforts.

creation of over 1,000 new jobs in the value chain.

Nissan continues its unyielding faith in the growth and

Nissan’s commitment to growth and development now includes

success of South Africa and the continent as a whole.

eight BEE start-up companies under the Nissan Incubator

That is why, when Nissan SA secured the contract to build

Programme that was launched in 2017. Skills development

the entire Navara line-up on our home ground, it was a

is another factor to be considered with an investment of

win for more than just Nissan, but our local economy and

40 million ZAR in training and re-skilling.

community as well.

In an effort to create more inclusive production opportunities,

This new leg of our journey started with an investment of

Nissan will be increasing its volume of locally sourced

3 billion ZAR into the South African economy, which had

components from 38 to 48% by 2022, in line with the SA

an impact of R5.8bn turnover within the local economy

Automotive Master Plan targets.

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ADVERTORIAL: NISSAN

In Africa we say: “When you want to go fast, you go alone.

But when you want to go far, we go together”.

We’ve collectively loaded the shoulders of this hearty one tonner with the aspiration of our business communities from small to large, entrepreneur to multi-national conglomerate, and we have every confidence that it will deliver.

Find out more at www.nissan.co.za

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WOMEN EMPOWERMENT

Connected

Womxn!

The IAB South Africa Transformation Council, in collaboration with Google, Meta, and TBWA, recently launched the Connected Womxn initiative. The initiative aims to address the lack of support structures and connection opportunities for women in senior roles in the digital sector.

Connected Womxn will take the form of quarterly thought leadership and connection events held in partnership with Google, Meta, TBWA, and IAB South Africa. Each partner will host one of the quarterly events, which will include panel discussions, presentations, and group events.

The initiative is targeted particularly at C-suite and senior leaders across the tech, media and marketing industries.

“The genesis for Connected Womxn came when we realised that there was no ‘big tent’ forum for leaders across agencies, specialists, platforms, publishers, brands and education companies in the digital media and marketing industry to raise challenges and collectively work to find solutions,” says Asha Patel, Google Sub-Saharan Africa Head B2B Marketing & South Africa Head of Marketing and Chair of the IAB’s Transformation Council.

“We also understood that we were in a unique position to provide that platform and help support women in leadership.”

Building recognition and support for women in the digital sector Connected Womxn is a central part of the Transformation Council’s wider efforts at building recognition and support for women in the digital sector. These include profiling senior women leaders

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across the industry to combat a perceived lack of role models and providing online support structures and a safe space for women through the IAB South Africa Transformation Council’s Digital Group for women – Allies in Action – which is launching soon.

“As the primary digital media and marketing body in South Africa, we are committed to ensuring that the industry is as representative and diverse as possible,” says IAB SA CEO Paula Hulley.

“Connected Womxn recognises that achieving real representation doesn’t just mean pushing for numbers, but also providing meaningful support.”

Connected Womxn will run throughout 2022 and cover a variety of topics, including celebrating the achievements of women in leadership positions in South Africa, what it takes to become a woman leader, and the responsibility women in leadership positions have to younger generations.

Members of the IAB Transformation Council, Women’s Sub-Council include: • Asha Patel, Head of B2B Marketing Sub-Saharan Africa & South Africa Head of Marketing, Google • Nokuthula Magwaza, Founder and CEO, Bloom Marketing • Nomacala Mpeta, Head of Learning, Digify Africa • Razia van der Schuur, MD of 4IR Academy 

MADE TO LAST

When you’re building a business you need the right tools and the Navara Single Cab measures up every time.

With an over 1 ton payload, increased load-box size, 3.5 ton towing capacity improved ride comfort and a powerful petrol or diesel engine in both two- and four-wheel drive it gets the job done. Getting to the site is now the best part of the day with Nissan Connect 8” touch-screen, rear view camera and cruise control. The hardworking Navara Single Cab is now built in South Africa to be Africa tough, rugged and reliable.

Nissan Navara. Made for your journey.

RUGGED REDEFINED

The New Nissan Navara Single Cab From

R316,700

NISSAN INTELLIGENT MOBILITY FEATURES AVAILABLE ON SELECTED MODELS

Visit nissan.co.za for more.