SA Profile - Volume 4 : 2021

VOLUME 4

■ 2021

How SME’s can seize an opportunity despite COVID-19 What we might expect from another unusual year

What the pandemic

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Insights for Entrepreneurial Leaders

SME financing 101: Knowing your options is key to survival When President Cyril Ramaphosa addressed the nation on the country’s response to COVID-19 on Monday 1 February 2021, small and medium enterprises (SME) owners across the country gave a unified sigh of relief, as certain lockdown restrictions were eased. Yet despite this easing of restrictions, SMEs have been under pressure for some time thanks to a sluggish economy, which the pandemic only served to compound.

T

his is according to Jeremy Lang, Regional General Manager at Business Partners Limited (BUSINESS/PARTNERS), who urges business owners to be realistic about their expectations and plans for the year ahead, but not to give up hope; “While we still have a long road to recovery, the extended curfew and the lift on the ban on alcohol sales is a positive step, especially for the hospitality sector. We implore SMEs who might be tempted to throw in the towel to reconsider their financing options.”

New institutions and types of financing are introduced each year, and there is a whole host of financing products available from the private and public sector. This financing mainly consists of grants, risk free and risk-based finance where either grants, debt or equity investments are made available.

Financiers include commercial institutions such as banks and SME focused financing institutions, development finance institutions, angel investors, crowd funding, enterprise development funding and private equity firms, amongst others. At present there are also relief programmes specifically designed to help SMEs weather the COVID-19 storm.

Unfortunately, a lack of awareness around available financing as well as a lack of business compliance and knowledge are proving to be a major barrier to SMEs accessing the support they need. “Thus, accessible financing is key to the survival of SMEs – which will, in turn, only assist the country’s economic recovery,” says Lang.

Before applying for financing, he advises a few factors that SMEs should consider:

Get your ducks in a row Most financiers require 12-24 month projections and need to get a clear understanding of how further expenditure will produce a better income for the business, which is why it is vital to detail how the business loan will be spent and how this will influence the projections.

“Strict criteria for most finance applications require statutory compliance and financial statements to be completely up to date, so make sure that the administrative function of the business is well managed,” says Lang.

Determine the life stage your business is in Lang explains that each financing option has different features that could be beneficial for businesses at various stages in their lifespans. “During the early stage of any business, it is most difficult to source financing due to the higher risk involved for the financier – which is why the majority of entrepreneurs rely on financiers like family or friends to provide the necessary funding to open or expand a business.”

As the business grows and matures, more capital may be required to maintain business operations during tough times, but a lower risk profile also means more financing options become available.

Customise every application According to Lang, the local financing landscape can be tricky to navigate because different financiers have different mandates and objectives in terms of social impact, employment or commercial returns.

“Generic applications may result in a higher failure rate, so it pays to do your research on all potential financiers in order to determine not only whether the business matches the specific criteria of the investor and speaks to their investment preferences, but also that the proposed financing agreement ensures a fair deal for both the entrepreneur and investor,” he advises.

Seek additional specialist input Financiers have become strong advocates of SMEs, especially over this tough period. According to Lang, there is a strong correlation between a business’ success when it receives financing along with technical assistance and mentorship. “Experts in their field can help SMEs to avoid costly mistakes and improve processes within the business.”

In conclusion, Lang adds, “The good news is that, while financiers’ and banks’ lending criteria have become increasingly stringent over the years, interest rates are currently low in South Africa, and as a result, monthly instalments have decreased, increasing affordability by SMEs. While it might seem like you are out of options, there is financing still available for SMEs - sometimes it’s just a matter of finding the right financing fit and knowing how best to approach it to increase your chances.”

About Business Partners Ltd. Business Partners Limited (BUSINESS/PARTNERS) is a specialist risk finance company for formal small and medium owner-managed businesses in South Africa and selected African countries. The company actively supports entrepreneurial growth by providing financing from R500, 000 to R50 million, specialist sectoral knowledge, business premises and added-value services for viable small and medium businesses. Since establishment in 1981, BUSINESS/PARTNERS has provided business finance worth over R19.5 billion in over 71 600 transactions facilitating over 651 000 jobs. BUSINESS/ PARTNERS was named the 2019 Gold winner in the SME Bank of the Year – Africa category at the recent Global SME Finance Awards*. Visit www. businesspartners.co.za for more information. *BUSINESS/PARTNERS has had remarkable results within the SME segment in Africa as a financier, even though it does not conduct the business of a bank.

ED’S NOTE

EDITOR'S NOTE If the COVID-19 pandemic has taught us anything, it is how crucial face-to-face interactions, marketing and advertising are in securing future business. All mediums of marketing and advertising will continue to play a significant role in business development and future growth.

Many of us have 'stopped the clock' and are waiting

I am highlighting the advertising topic specifically as I have

for better days during these unprecedented times.

noticed it internally and the huge negative impact it had on

However, what we don’t realise is the extent of the

us as a business.

damage we have caused to our brands and service offerings.

So, let’s not forget what has been working for us for the past few decades when it came to promoting your brand or

Henry Ford once said, “A man who stops advertising

services.

to save money is like a man who stops a clock to save

I would like to say a huge thanks to all our contributors

time.”

for their great input in this edition and also kudos to our advertisers for their support. Without your support, nothing

Advertising after all, is an integral part of a successful

would have been possible. Thanks for your trust in using this

business. I have personally noticed that many businesses

title as part of your communications vehicle during 2021.

have stopped advertising or brand building during the past few months, which has resulted in many businesses

We wish you all the best during 2021 and beyond. And

closing down permanently or scaling down dramatically.

remember to stay safe and lets all get active in tackling the

It is, however, understandable that there had to be many

unemployment crisis in our country.

changes because businesses just could not operate.

Best wishes, However, scaling down on marketing and advertising brand or services is one of the biggest mistakes we could have made because marketing and advertising a vital part of creating a great internal operation.

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CONTENTS

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52

Cover Story: SME Warrior – Business warrior and

66 Entrepreneurship: From side hustle to main hustle –

transformation champion................................................................ 8

7 tips for making the jump............................................................ 62

Advertorial: SME Warrior.............................................................. 11

Profile: Quazar – Leanne Cape...................................................... 64

Advertorial: Aurum Capital........................................................... 12

Working Capital: When is the best time to borrow

COVID-19 & Africa: Africa is greatly challenged

money for your small business?................................................... 66

by COVID-19 pandemic................................................................ 14

Stocks worth watching: What we might expect

Interview: Petroleum Agency SA – CEO,

from another unusual year............................................................ 68

Dr Phindile Masangane................................................................. 18

Workplace Diversity: Mainstreaming disabled people

Achievement: World’s youngest CEO of a

into the economy is a human rights issue................................... 70

pharmaceutical company hails from SA...................................... 22

Customer Experience: Why breaking down silos is

SME’S & COVID-19: Cut the costs, not the dream – how

essential for great CX..................................................................... 72

SME’s can seize and opportunity despite COVID-19................. 26

New Technology: How can automation and AI bolster

Wealth Management: Three wealth management

the fight against money laundering............................................. 74

trends to watch in 2021................................................................. 28

Advertorial: K&A Marketing......................................................... 77

Working Remotely: South Africa’s business model

Digital Economy: SA Competition Commission plans

has forever been disrupted........................................................... 30

to zoom in on digital markets....................................................... 78

Continuous Learning: How continuous learning

Workforce: Building a flexible, future-proof workforce............. 80

helps business to innovate............................................................ 32

Corporate Social Investment: Companies in SA

Profile: Sol Plaatje University – Dr Tendai Musvuugwa.............. 34

spent R10.7 billion on CSI in 2020............................................... 82

Profile: Sol Plaatje University – Dr Marga Stander...................... 35

Financial Education: Challenging the failure of

Profile: Sol Plaatje University – Dr Christelle Meniago.............. 36

financial education......................................................................... 86

COVID-19: What the pandemic taught us.................................. 38

Enterprise Resource Planning: Five benefits of ERP

Entrepreneurship & Human Rights: Entrepreneurial

for African SME’s............................................................................. 88

impact and human rights............................................................... 42

Stock Market: How to tell if we are in the midst of a

Profile: Nova Property Group – Dominique Haese.................... 44

market bubble................................................................................. 90

Mentoring Entrepreneurs: Driving entrepreneurial

E-Commerce: 5 Reasons to urgently implement a B2B

growth through mentoring........................................................... 47

e-commerce solution in your business........................................ 94

E-Learning: E-Learning trends that can help your

Skills Training: Why executives believe closing the

business succeed in 2021............................................................. 48

skills gap is an urgent priority....................................................... 96

Advertorial: Skills Train Distribution............................................ 50

Customer Service: BPO Insights – The changing face

Transformation: Time to transform our inequitable

of customer service in a post pandemic economy.................. 100

society into one governed by Ubuntu......................................... 52

Performance Management: Manage output

Advertorial: Transformation Legacy............................................. 56

not presence................................................................................. 102

Sales Incentives: Using incentives to drive

Unemployment: Why unemployment is shackled

business growth – 4 tried and tested ways.................................. 58

to business growth....................................................................... 106

Entrepreneurship: 20 lessons in 20 years:

The Future of Work: 15 Critical skills to master for

Lesson 1 – Am I really an entrepreneur........................................ 60

the future world of work.............................................................. 108 Advertorial: Beraca Accountants and Auditors....................... 112

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CREDITS

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82

EDITOR

Elroy van Heerden | editor@saprofilemagazine.co.za

SUB-EDITOR

Tessa O’Hara | tessa.ohara@gmail.com

CONTENT MANAGER

Wadoeda Adams | artwork@mediaxpose.co.za

DESIGN AND LAYOUT

Anja Bramley | artwork1@mediaxpose.co.za

EDITORIAL CONTRIBUTORS Prof Meshach Aziakpono Ivan Radmore Maarten Ackerman Michael Gullan Craig Kent Yogavelli Nambiar Andrew Weinberg Dr Mamphela Ramphele Claire Storm Allon Raiz Dov Girnun Jacqueline Raw Daniel Kibel Natalie Schooling Erik Stretz

100 Burton Phillips Cathy Duff Shafeeqah Isaacs Dumisani Moyo Nishlen Govender Andre Adendorff Clinton Cohen Jason Hamilton Dr Eric Albertini

PROJECT MANAGER

Zelda Stein | zelda@mediaxpose.co.za

ADVERTISING SALES Hester Kleynhans Maurisha Niewenhuys

SOCIAL MEDIA

Kyla van Heerden | social@mediaxpose.co.za

DISTRIBUTION AND SUBSCRIPTIONS

Shihaam Gyer | distribution@mediaxpose.co.za

CHIEF FINANCIAL OFFICER

Shaun Mays | accounts@mediaxpose.co.za

RECEPTIONIST

Daniela Daniels | receptionist@mediaxpose.co.za

DISTRIBUTION: ON THE DOT

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PICTURE CREDIT: SME Warrior | 123rf.com | pixabay.com

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

COVER STORY BUSINESS SUCCESS

Business warrior and transformation champion SA PROFILE spoke to Shani Naidoo, founder of SME Warrior: A true warrior with an instrinsic desire for SA businesses to flourish.

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COVER STORY BUSINESS SUCCESS

Please tell us more about your career background.

implementation, business transformation through neuro

After completing my CMA qualification in 1995 at Wits, I

based on neuro-social and NLP methodologies.

entered the insurance and banking industry and worked

education and business development. The basis of training is In March 2019 in association with Y-Connect, we hosted an

in it for the next four years. In 1999, I had the opportunity

interactive business workshop: Ignite Your Sales and What’s

to enter the accounting/tax/compliance arena at an audit

Your Money Game. A new and different approach to sales,

firm in Johannesburg. This was the start of my career as an

finance and money management was showcased using NLP

accountant and tax practitioner. In late 2005, I embarked on

methods.

my entrepreneurial journey into private practice and Nemesis Accounting was launched.

Since then I have obtained a few other qualifications:

August 2020 marked the second Women’s Day event: COVID 19 – New Business Woman of the Future. Due to the pandemic this was quite apt and needed. The impact

Registered FAP, Registered Certified Tax Practitioner (SARS,

of current and post-COVID on business was workshopped,

SAIT), Business Rescue Practitioner (UNISA/Law Society

specifically addressing: what lies ahead; the new trajectory;

2018), Internal Audit Certificate (Tuks 2014), Business Coach

adopting a new way of thinking; developing new habits and

(2018), Master NLP Practitioner (Neuro Linguistic Practitioner

the intrinsic values that will be required.

2019), GCologist- GC Index accredited facilitator and trainer of the GC Index (2019 UK).

From 2005 to 2007 I served on the Exco as treasurer

Come September 2020, I was a panelist on the Skills Development Summit which was held in Cape Town – a virtual event due to COVID. Here, in-depth discussions about

for the Midrand Chamber of Commerce and Industry.

the SME sector, solutions, ongoing problems and more

In 2010, Nemesis Accounting was nominated for Small

specifically government's involvement and lack thereof in the

Business Entrepreneur of The Year Award by the NSBC. I was

SME space. It also took into account how the economy was

appointed in 2015 as a director of Business Acceleration

impacting businesses.

Specialist, teaching business sustainability skills and development strategies for small business.

In August 2018, Nemesis Accounting hosted its first

In November 2020, I was appointed CEO of a company called Aurum Wealth Creators (Pty) Ltd. As a start-up, my function and role is to enable through internal controls,

women's day event : Business Woman Of The Future - a

compliance and proper business execution, culminating in

very transformational experience. We addressed the neuro-

a gentle scale-up of the company. The company is involved

psychological connection and impact on women in business.

with financial literacy education on a personal and business

SME Warrior was born in September 2018, the focus being on SME training and development, strategic business

level including wealth creation strategies using different avenues for generating wealth.

How would you describe your work in the SME space?

Working with SMEs requires a very special type of interaction

Not many accountants have the NLP as part of their service offering or even use it in a business framework. The results are remarkable in that true transformation happens intrinsically and immediately for the client.

and deep understanding. With the qualifications I have the NLP, it places me in a very favourable position when it comes to problem solving. I have a tremendous amount of insight into a client from a neurological perspective. Not many accountants have NLP as part of their service offering or even use it in a business framework. The results are remarkable in that true transformation happens intrinsically and immediately.

We do a lot of mentoring and strategic business advisory in addition to the normal accounting and taxation services.

Each SME has its own unique problems so there will never be a one-fit-for-all solution. Only tailor-made solutions that work

SA PROFILE www.saprofilemagazine.co.za

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COVER STORY BUSINESS SUCCESS

is what we are about. There is also a lot of pro-bono work that we include in our services because money is always a concern for SMEs and more so for small business owners who need our services.

Why is continuous learning for entrepreneurs vital, especially during these unprecedented times?

Being faced with uncertainty and the economic strife that the country is facing, we have come to see and accept that nothing can be taken for granted. Foundational business skills and knowledge is of paramount importance, now more than ever before.

Learning, unlearning and relearning are the core elements of successful navigation and business continuance. The real key to success is knowledge, rather the correct use of knowledge, defined skill sets, training, agility and understanding of what you’re in and what you’re doing. Many millionaires and billionaires who started with nothing and no education will tell you that at some point they had to get some sort of education.

Financial literacy is an absolute necessity and is desperately needed. The responsibility falls on all of us and business owners to educate ourselves as best we can. Being in the digital era means learning more is easier to achieve. Self-education is where we need to focus on and together with mentors and accounting firms, like Nemesis Account and SME Warrior who specialize in SMEs, half the battle is already won. Everyone starts somewhere and continuous learning must become the

always have its place and value. However, living in COVID, 4IR

norm for business owners.

and ever-changing times, a bit more than experience is going to be needed to navigate and sail these waters. Remember

A lot of SMEs start up with no proper educational background, and rather just on experience. What is your opinion on this?

that business is a game of elements; if you are not playing to win then you shouldn’t be playing at all. Unfortunately, some business skills will have to be learnt.

You can only ‘wing it’ for so long. Eventually, the nature of business will require more than you have. Experience will

We are facing a pandemic that is not only putting a halt to our daily lives but also affecting SMEs more than ever. What advice do you have for SMEs? COVID-19 has brought a few gifts to all of us – the gifts of

Learning, unlearning and relearning are the core elements of successful navigation and business continuance.

resilience, introspection, planning, creative thinking and problem solving. SMEs must use these gifts as strategy points to re-engineer and rewire themselves and their businesses. It is through this process that the strongest and most creative will survive the effects of the pandemic.

It is unfortunately easier said than done – however, partnering with the right service providers, mentors, finance coaches, accountants, business advisors and specialists, this can be achieved and sustained well into the future. ■

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ADVERTORIAL SME WARRIOR

A serious path of

business change dynamics SME Warrior was born out of problems we encountered during servicing our small business clients in Nemesis Accounting. Over the years it became more apparent that business failure and instability were not merely due to lack of money or funding but more to do with the actual business owner and their lack of skills, financial literacy, money management, planning and execution and a strong values and beliefs system.

O

ur philosophy is based on neuroscience. Being a Master NLP Practitioner (neuro linguistic programming), it dawned on us that the mindbody connection was not the only connection that mattered. The connection between the brain and emotion was the missing component. Looking at the four components enabled us to get to the root cause of the weakness in the SME sector The vision was to enable every business owner and entrepreneur who walked through our door, to be awakened; hence “awaken the warrior within" became our slogan – because that’s exactly what we do!

We launched three houses in our business under the “Game Changing Academy” – Business, Financial Literacy & Entrepreneurship, Legal, and People Performance and Development.

This academy will bridge the skills, knowledge and experience gap that is needed by so many businesses. Through the academy we teach, mentor and develop people potential, latent and existing, using neuro-educational techniques and methodologies.

These can then be implemented by the business owner in their everyday life and they can continue to experience life-changing results that truly matter.

We encapsulate “Maslow’s Hierarchy of Needs” of business training and people development.

We also own a financial franchise – Smart Money – an online learning platform that teaches financial literacy from basic level to investment and retirement level.

With NLP, we are able to dig really deep when analysing and problem solving with clients. Deep introspection enables us to

gain an in-depth insight into the clients' thinking, actions and root causes of their stagnation. Once we achieve the breakthrough, the client is amazed and ready to take the necessary action required to succeed on their chosen path.

Another serious, almost forgotten aspect is that of business legal. Most business owners and entrepreneurs have very little or no knowledge or understating of basic business legal requirements and concepts. This is another harsh blow for small businesses. Through our 'House of Legal', we are able to close the gap with simplistic teaching and webinars.

SME warrior is on a serious path of business change dynamics.

Being in 4IR, crypto currencies, and new age everything, we need to bring business innovation to the masses to enable a new, sustainable economy to emerge, just like a Phoenix from the ashes.

The time is now and we are ready to do just that!

If you want a free consultation with us, visit our website to complete the form or email: shani@ nemesisaccounting.co.za.

Shani Naidoo

SME WARRIOR W www.smewarrior.biz SA PROFILE www.saprofilemagazine.co.za

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ADVERTORIAL AURUM WEALTH CREATORS

Igniting wealth

creation & sharing As the CEO of Aurum Wealth Creators, I can tell you that we are on a path of igniting the new in terms of financial literacy, wealth creation, financial products for the new age including crypto currencies, financial freedom and an all-encompassing drive and passion to see wealth created and shared with those who are willing to learn, understand and reposition themselves.

F

inance and wealth creation are not easy areas to understand and talk about. For most people, what they know and understand about money is very limited. At Aurum Wealth Creators, we provide consultation services on financial leveraging, debt management, passive income generation, and a host of other related products that would service financial needs.

Wealth creation, once only reserved for the elite, is now available to everyone, like you and me. It’s a bit different to finance, yet still includes financial concepts that need to be understood.

So, a person would need to talk to people who know, understand and are involved with these areas of business if they wanted to learn and become more aware of these concepts, especially if they wanted to improve the financial quadrant of their lives.

Aurum Wealth Creators is bridging the finance gap with innovative financial products such as debt management, sustaining living costs, asset finance, and income generating products, business building and business mentoring.

Business mentoring of the SME sector is one such area that is critical to sustaining and improving our economy. Ultimately, it’s up to the private sector and companies like Aurum Wealth Creators, who have the skills and expertise to significantly contribute to the business sector, to support the economic rebuild. A strong economic foundation means greater leverage to do more and improve livelihoods. Ultimately, this is how financial freedom is created.

Aurum Wealth as a mentor Aurum Wealth is currently mentoring a start-up called Dial-A-Mula Network. It’s a company that has launched a dialler product that facilitates income generation for the lower end market through the use of a cell phone and network marketing. The secondary benefit is airtime and data at a lower cost.

The aim here is to teach basic financial literacy, how to start a

small network business and ultimately contribute to alleviating poverty and unemployment. The pre-launch took place on 3 February 2021 in Alexandra. This was attended by all staff, including King Francis Nwaneri and coverage by the SABC. The product goes live in the second quarter of 2021. Dial-A-Mula also hosted a community outreach on 3 February 2021 at the Alexandra Community Centre where residents of Alex were introduced to this life-enhancing product and financial tool.

An office will be established later in the year in Alexandra to service the residents who want to invest in the Dial-A-Mula product. Specifically designed for the lower end market; by sacrificing the cost of a bucket of fried chicken, people could invest in the Dial-A-Mula product and embrace the opportunity to change their lives.

When King Francis Nwaneri, the Paramount King of Kings, was introduced to us and our products, he immediately saw the benefit this would bring to his people throughout Africa. Here is a king who understands the human need, the need to eradicate poverty and realized that governments the world over would not be able to solve the poverty and unemployment crisis currently being faced.

We are honoured to have King Francis Nwaneri as our ambassador. ■

Shani Naidoo

Aurum Wealth Creators T +27 (0)11 267 0500 M +27 (0)83 597 2772 E info@aurumwealth.org or shani@aurumwealth.org 12

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EDITORIAL COVID-19 & AFRICA

Africa is

greatly challenged by COVID-19 pandemic

By Prof Meshach Aziakpono, professor of Development Finance, University of Stellenbosch Business School (USB)

Although the world has been forced to its knees as a result of the COVID-19 pandemic, countries in Africa are facing a severe decline in future investments, high debt obligations and massive backlog of economic infrastructure. African countries pre-COVID-19 had challenges of such nature and their recovery is not going to be easy.

One of the solutions is for Africa to look beyond individual country specific needs and solve the issues as a continent.

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T

he level of disruption brought about by COVID-19 globally is overarching and since Africa is not operating in isolation, how the pandemic affects the globe has a significant impact, especially if you

consider the problems the continent faced pre-COVID-19.

Before COVID-19, Africa was at the lowest level of income compared to other regions of the world. According to the World Bank (2019), only one African country from 80 countries around the world was identified as high income, and 23 out of 31 countries in the low-income quadrant.

Unemployment is between 33-55%, affecting the youth

EDITORIAL COVID-19 & AFRICA

massive infrastructure backlogs, and high-levels of debt and

Look beyond individual country-specific needs

corruption all stifle the growth of the continent.

One of the solutions is for Africa to look beyond individual

which constitutes 70% of the population. Hunger, poverty,

In South Africa, according to the OECD, 57% of youth were unemployed in 2019. The high level of income inequality and

country-specific needs and solve the issues as a continent.

Africa has a unique opportunity to mobilise and tap the

the growing proportion of those who have little increase social

huge trade potential within the continent. The Africa Free

challenges.

Trade Agreement needs to be implemented to unleash

Most countries around the world are facing a recession

growth, instead of depending on import from other countries.

and the impact on Africa cannot be stressed enough.

Also, Africa governments need to approach lenders

Through economic stimulus packages, developed countries

collectively for debt cancellation and in its absence, at least

were able to support their citizens with relief funds, grants,

a delay in repayments and possible cancellation of interest

and healthcare infrastructure, stimulating the economy and

payment.

cushioning the impact on businesses and mitigating the adverse effect of the pandemic.

Although similar initiatives were adopted at different levels and degrees in developing countries, the number of people that could benefit was significantly limited.

The informal sector, which makes up a vast majority of small

Africa is in a unique position to embrace technology which can support and grow business-to-business transactions, boosting potential funding for SMMEs. Proper mechanisms need to be put in place to fight corruption and to create policies that would protect investors rights to enhance their confidence in investing in Africa. No

businesses in Africa, were significantly affected due to the fact

investor does so without the guarantee of improving their

that their businesses are not correctly documented, making it

bottom-line and making profits. We are sending investors

impossible not only to identify them but for these businesses

away and Governments and its citizens need to recognise the

to access the relief that was offered.

crucial role they play in attracting and retaining investors.

The impact on Africa has already seen a decline in

Africa needs to increase the culture of savings, even

tourism, foreign direct investment, development assistance,

amongst the poor. Current policies cater for the rich but what

and a decrease in tax revenue, loss in revenue from natural

if we made saving attractive to the poor? If we can implement

resources, decline in exports and an increase in public

a scheme whereby the poor are incentivised to save, this

expenditure.

will have a significant impact on spendable income, foster

Government debt is at an all time high. The Daily Maverick estimates a R285 billion loss in revenue for South Africa with

a culture of saving and uplift the poor whilst the continent mobilises resources for growth and prosperity. ■

government loan response jumping to R95 billion.

The ratio of Government borrowing to GDP increased significantly yet it will soon be impossible to borrow at a reduced cost. With the private sector constraint, the only option is for Governments to boost the economy, yet their capacity is limited.

It’s evident that the capacity to generate domestic resources is limited and COVID-19 has worsened the situation.

GDP per capita was already very low and if the recession turns into an economic crisis, the reduction will be even greater, spiralling the countries into further poverty. Developed countries are weathering their own storms, resulting in significantly lowering foreign investment and the flow of funds available for developing countries.

With these real challenges Africa faces, a vicious circle is created, leading to the critical question of how does one recover an already failing economy?

Prof Meshach Aziakpono, professor of Development Finance, University of Stellenbosch Business School (USB)

SA PROFILE www.saprofilemagazine.co.za

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INTERVIEW PETROLEUM AGENCY SOUTH AFRICA

Brulpadda discovery and ongoing exploration have put SA on the international investment map SA PROFILE spoke to Dr Phindile Masangane, CEO of the South African upstream oil and gas regulatory authority, Petroleum Agency South Africa (PASA), about what is required to secure stability and security of energy supply.

D

r Masangane was appointed as Chief Executive Officer of PASA in May 2020. Before that, she served as an executive at the South African stateowned energy company, CEF (SOC) Ltd, the

holding company of PASA. In this role, she was responsible for clean, renewable and alternative energy projects. In partnership with private companies, Dr Masangane led the development of energy projects including the deal structuring, project economic modelling and financing on behalf of the CEF Group of Companies.

Her responsibilities also include supporting the national government in developing energy policy and regulations for diversifying the country’s energy mix. In 2019, Dr Masangane was appointed Head of Strategy for the CEF Group of Companies, where she led the development of the Group’s long-term strategic plan (Vision 2040+) as well as the group’s gas strategy.

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Between 2010 and 2013, Dr Masangane was a partner and

consistency in contractual terms together with political and

director at KPMG and was responsible for the Energy Advisory

independent judicial stability. Coupled with this would be a

Division. In this role she successfully led the capital raising of $2

government that is committed to ease of doing business and to

billion for the Zimbabwe power utility (ZESA/ZPC)’s hydro and

facilitating entry into the upstream space.

coal power plants expansion programmes.

Local expertise in servicing the industry’s requirements in terms of human resources and services is also a strong

What is PASA's role and its mission and vision?

advantage. A developed industrial economy offering

Petroleum Agency SA is South Africa’s national regulator for the

opportunities for local monetisation of gas discoveries would

upstream oil and gas industry in South Africa. PASA licenses and

also assist.

regulates exploration and production activities of oil and gas both onshore and offshore.

Where do the opportunities lie in this sector?

South Africa has a good petroleum resource prospectivity

PASA has three main functions:

which remains unexplored. The country is highly dependent on

1.

The first is to attract investment to South Africa’s oil and

imported crude oil and in recent times South Africa also started

gas upstream industry via investment into exploration and

importing finished product (petrol and diesel), which is not

production of oil and gas in South Africa. We have a team

good for our balance of payment as a country. The opportunities

of geologists and geophysicists who interpret data gathered

are massive for the country to unlock its petroleum resource

through past exploration activity to determine prospectivity

endowment to meet its energy needs.

and use this to attract exploration companies to South Africa.

2.

The second is to regulate the upstream industry in terms of

The development of the stand-alone Upstream Petroleum Resources Development legislation and its accompanying

the Mineral and Petroleum Resources Development Act, its

regulations will further support a conducive environment for

regulations and other applicable legislation. PASA has staff

oil and gas development. This rewriting of the legislation

responsible for ensuring legal, technical and environmental

governing oil and gas exploration and production gives South

compliance as organisations enter into contracts with the

Africa a chance to address the requirements of the industry

state to explore for oil and gas.

(as above) while also ensuring an equitable deal for the South

3.

The third function is to act as the national archive for all data and information produced during oil and gas exploration and production in South Africa, and to curate and maintain this dwata for use and distribution.

African state and meaningful participation of South Africans in the industry.

The recent Brulpadda* discovery and ongoing exploration in the area, as well as the potential for shale gas have both put South Africa on the international map in terms of a destination

Other functions include advising government on any issues

for investment. The oil price is making a slow but steady

pertinent to oil and gas as well as carrying out any special

recovery from the recent crash caused by the price war between

projects, as directed by government.

Russia and Saudi Arabia and further exacerbated by the drop in

For example, we are currently studying the geology of the

energy demand because of the COVID-19 pandemic.

Karoo Basin to quantify the shale gas potential that we have.

We are also studying the ground water availability (quality

What are the challenges facing this sector?

and quantity) so that we have a baseline against which we can

Challenges facing the South African upstream industry

monitor shale gas activities in the future.

include the low oil price (now steadily recovering), uncertainty regarding terms and legislation (now being addressed through

What is required to secure stability and security in the sector?

the UPRDA), environmental concerns and misplaced public

The oil and gas exploration industry has always been extremely

the specialised skills.

volatile, being subject to global economic forces and highly

negativity regarding fossil fuels, and the perception that we lack A further challenge is to diversify the industry and make it

dependent on the fluctuating oil price. In addition, oil and

more inclusive in terms of South African companies undertaking

gas exploration is exceptionally risky in terms of initial, upfront

exploration in South Africa.

capital investment with long periods before any return on investment and profit generation.

To counter this, oil and gas exploration companies require equitable terms, and especially long-term stability and

Transformation of the upstream oil and gas industry and making sure that the industry is inclusive is essential. The upstream oil and gas industry is highly capital intensive, high risk in the early stages and requires highly specialised skills.

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INTERVIEW PETROLEUM AGENCY SOUTH AFRICA

So local small and medium companies tend to find it difficult to source funding to participate in the industry. Our challenge is that as a regulator acting on behalf of the government and the people of South Africa, we have to find solutions to these challenges so that South African companies can meaningfully participate in this strategic industry.

How big a role does PASA play in the renewable energy sector, and how will you be advancing this agenda?

The opportunities are massive for South Africa to unlock its petroleum resource endowment to meet its energy needs.

Oil and gas are fossil fuels and by definition, not part of the renewable energy sector. The South African energy transition is from a high coal reliant energy mix with a high carbon

dependent on the success of this further drilling.

Other exploration offshore is the planned drilling of the

footprint to a cleaner energy future with mainly gas/renewable

Gazania -1 well off the west coast to test a prospect close to the

energy. Renewable technologies cannot provide a reliable

A-J1 oil discovery made in 1988. African Energy Corporation

baseload supply of electricity. The flexibility and load following

has entered into a partnership with Azinam and Panoro in this

capability of gas technologies makes gas-to-power an essential

block (still to be approved by the ministry) and have identified

technology to combine our renewable energy programme with.

numerous prospects in the block. Aziman will become the

South Africa is currently heavily dependent on coal as a primary energy source and the substitution of natural gas for some percentage of electricity generation, as envisaged in

operator. The well will test the Gazania and Namaqua prospects.

Drilling is expected to start during the first quarter of 2021.

Off the east coast, ENI and partner Sasol, have identified

the National Development Plan, could assist with the country

potential drill prospects in deep water, but the testing of these

reaching its goals in terms of lowering the carbon emissions.

by drilling has been delayed due to various issues including the

PASA's main role in this is to attract and facilitate the activities of

COVID-19 pandemic and its effect on the oil price.

explorers for indigenous gas.

Once the UPRDA and its accompanying regulations are finalised, we can expect the initiation of active exploration for

How important is policy- and legislation decision-making in informing how PASA undertakes its operations?

shale gas onshore. The true potential of this resource will only

Policy and legislation are of utmost importance in how PASA

economy of South Africa.

become known through drilling and production testing, but this may certainly represent a major economic boost for the

operates. The main purpose of PASA is to implement and apply behalf of government. Its mandate is 100% driven by policy

Do you know what the onshore and offshore potential is of these explorations?

and legislation. Its close contact with the diversity of exploration

PASA has a team of geoscientists which determines the

companies puts it in a unique position to be able to advise

potential to attract explorers, ensure that exploration is properly

government in the formulation of policy.

managed, and advise government on the potential indigenous

policy and applicable legislation to the upstream industry on

resource to help develop energy and development policy.

Where are the new SA oil and gas explorations?

there are only four wells drilled off South Africa's east coast.

Currently there is ongoing exploration offshore of the prospects

Current estimates indicate the potential for billions of barrels of

close to the Brulpadda discovery. Odfjell’s Deepsea Stavanger

oil and multi Tcf (trillion cubic feet) of gas yet to be discovered.

oilrig is on its way to South Africa from Norway and should arrive

Onshore, PASA’s estimate for shale gas is 205 Tcf recoverable

around 12 August. It will drill the Luiperd (more correctly the

while coal bed methane and biogenic gas represent a further

Luiperdpadda) prospect which is the second of five prospects in

multi-Tcf potential resource.

Offshore is for the most part underexplored, for example,

the group. There is an option to retain the rig in South Africa for

but the phase in the other prospects can only be determined

What skills and upskilling of expertise is still required to ensure stable and thriving on- and off-shore exploration?

through drilling. Future development of the discovery is highly

South Africa already has the ability to provide a vast array of

further drilling.

The Brulpadda well discovered light oil and gas condensate,

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INTERVIEW PETROLEUM AGENCY SOUTH AFRICA

skills and services to the upstream industry, as represented

has passed regulations that opened the exploration and

by the membership of SAOGA. What South Africa does

production of oil and gas to go ahead.

not have is specialised skills such as qualified rig crews, as

For PASA, the pandemic has made us accelerate the

the local industry is too small to sustain such specialisation.

implementation of the digitisation programme wherein we are

Specialised crew and tradesman trained to service the

automating our processes, including the online application for

upstream industry have to be equipped with skills that can

oil and gas permits.

be applied cross-industry to ensure sustainability.

Professional skills such as reservoir engineers, petroleum

What are your long-term goals for PASA?

geologists and geophysicist are also in very short supply

In the long term, we want to see a diversified and fully

locally, for the same reasons.

developed upstream oil and gas industry that produces at least 50% of the country’s petroleum needs. Indigenous

What is the future for gas-fired power stations? Will this provide more stable power generation, and how far away is SA from introducing this?

production of oil and gas supports security of energy supply

South Africa already has legislation in place allowing for

have domestic production of gas in spite of having good gas

independent power production and this will most probably

resources.

and enables (re)industrialisation of our economy and can create many permanent jobs. Gas is part of South Africa’s energy transition to a cleaner energy future, yet we don’t

lead the way to gas-fired power stations on a large scale.

procurement of gas-to-power generation capacity to be

How will the merging of PetroSA, the Strategic Fuel Fund and iGas (to form the National Petroleum Company) impact the petroleum industry?

launched anytime now – the procurement approval has been

The petroleum industry is not just an economic industry

granted by both Minister Mantashe and the energy regulator

but it is about security of the country. You can see that in all

(NERSA) under the 2000MW emergency power procurement

countries the state always has a part in the petroleum industry.

determination. During the year we expect another 3000MW

Bringing the three entities together is about making sure that

of gas-to-power generation capacity procurement to follow.

the three SOEs can pull their resources together to optimise

Explorers for coal bed methane onshore have reported discoveries that could sustain gas fired stations of possibly co-firing supplement to coal. We are expecting the first

the state participation in the petroleum industry. This is in

How would you describe the current state of SA’s petroleum industry?

line with the upstream petroleum resource development legislation that is being developed.

South Africa imports more than 95% of the gas used in the country. We have almost no crude oil production so we import that as well. Recently, we have also started importing refined petroleum products as our refineries have not made the required investments to meet demand. So we are too reliant on imports, yet we have good petroleum resource prospectivity as a country that is under-explored.

In terms of executive positions, you work in a male-dominated sphere. However, studies show that diverse work environments hold many benefits. As a woman, how can your background and lived experience benefit PASA? I believe that some leadership qualities which come naturally

How is the COVID-19 pandemic affecting the petroleum industry and PASA in particular?

to women are what make women better leaders. For example,

COVID-19 has caused serious disruptions to the industry

on delivering government’s long-term objectives for the

and PASA. Exploration and production of oil and gas have a

sector.

significant presence of international oil companies who from time to time bring their experts into the country to manage projects. With the restrictions on travel, major projects

women are naturally long-term visionaries and I will use my experience in government policy development to focus PASA

You have a PhD in Chemistry. Where does your love of chemistry and science in general, come from?

From an early age I was very strong in maths and science. I

been have put on hold as equipment and people cannot

was fortunate and I was given opportunities to pursue studies

enter South Africa. Fortunately, in Level 3 of the lockdown

in science (Chemistry) to the highest level (PhD) and I really

regulations, the Minister of Mineral Resources and Energy

enjoyed it. ■

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EDITORIAL ACHIEVEMENT

World’s youngest CEO of a pharmaceutical company hails from SA Awarded the title of world’s youngest CEO of an international pharmaceutical company, at the 2019 ARAB Health Conference held in Dubai, 20-year-old Tony McPherson has already achieved more success and accolades than many his age or even older.

H

aving learnt the value of money at a very young age, McPherson is today group CEO of McPherson Holdings which oversees the running of companies specialising in pharmaceuticals, marketing, logistics

and philanthropy, and has achieved this without any outside investment.

Entrepreneurial bloodline Based in Somerset West in the Western Cape, McPherson attributes much of his entrepreneurial prowess to that of a long lineage of businessmen and women. His grandfather, Ivor Duncan, founder and inventor of EmOx™ Oxygen, started grooming McPherson – then aged 17 – to eventually take over

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EDITORIAL ACHIEVEMENT

his pharmaceutical company. From working on the factory

of money, and how saving and investing it over time would reap

floor to overseeing product marketing, McPherson already

rewards.”

demonstrated acute knowledge of how to run the business

Academically, McPherson excelled at primary school and

when his grandfather suddenly passed away in September

equally so as he started his scholastic career in high school.

2017.

In Grade 9, the then 15-year-old took an interest in computer

Without a leader, battling dwindling profit margins and

programming and web development so when asked to create

accruing debt, the company board members appointed

a website for his grandfather’s real estate company, McPherson

McPherson as their interim CEO for a six-month period.

jumped at the opportunity to programme, develop, optimise

“Understanding and knowing the company like the back of my hand meant that I was a natural candidate despite only being 18-years-old at the time,” says McPherson.

In six months, the company recovered from all its debt,

and market the website. In the process he realised that there was a growing demand for those types of services.

“With one completed website under my belt, I decided to pitch for more work,” he says.

profitability was increased by 38%, development plans

It took over six months of unsuccessful pitching until

for new product lines were underway, and a worldwide

McPherson landed a monthly retainer with a local security

sales force was implemented. It goes without saying that

company in Somerset West who were so impressed with his

McPherson’s business acumen won him the permanent title of

pitch; they signed him on the spot.

CEO. Over the past two years, EmOx International, which manufactures the world’s only emergency powder-based oxygen, has sought to continuously improve on its nonpressurised products, which are activated by mixing two

“No one wanted to entrust their money to a 15-year-old with little experience, but I never gave up and I kept on pitching,” adds McPherson.

Less than a year later, McPherson Consultancy had over 25 clients on retainer and was turning a reasonable profit.

chemicals with water to generate 99.98% pure oxygen. The company is also working on developing and marketing products McPherson’s grandfather was unable to complete due to his illness.

Today the company works closely with international entities

Trading with the world In January 2019 – and with a wealth of experience in shipping oxygen products around the world – McPherson launched McPherson Trading; a tender-based procurement consultancy

such as the United Nations, Doctors Without Borders, Marie

that sources and ships medical consumables and disposables to

Stopes International, and various relief programmes across

difficult-to-deliver regions and rural communities across Africa

the world. Within South Africa, portable EmOx™ oxygen units

such as Mali, Malawi, Tanzania, the DRC, Sudan, Somalia, and

are used by miners, the NSRI and the Mountain Club South

Yemen.

Africa search and rescue teams.

Within 11 months of founding the company, McPherson won the 2019 NSBC Youth Entrepreneur Champion Award, and

COVID-19 relief As a result of the COVID-19 pandemic, McPherson and his

McPherson Trading was placed among the top 20 SMMEs in South Africa.

team are operating together with various relief programmes around the world to supply them with portable EmOx™

Uniting nations

oxygen units for use on patients that require oxygen on a

Through his advisory work with South Africa’s current

non-invasive or high flow basis. The team is also assisting

government, McPherson has developed strong ties with

governments across Africa and Europe with planning for

the United Nations. In July 2020, he was named Youth

predicted shortages of pressurised oxygen supplies.

Representative for South Africa to the Model United Nations (MUN), which is an educational simulation in which delegates

Holiday job that started an empire Starting an empire needs to start somewhere and for

can learn about diplomacy, international relations, and the United Nations. MUN delegates are taught key leadership and

McPherson it was atop an overturned milk crate behind the till

diplomacy skills and are introduced to delegates from the world

at his grandparent’s store in Malgas along the Breede River.

over.

“I was six years old and I could barely see over the till,” recalls McPherson. “But that’s when I started to learn the value

“I have always taken a fond interest in diplomacy and international relations and am extremely intrigued by the inner

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23

EDITORIAL ACHIEVEMENT

workings of governments,” adds McPherson. “The opportunity

From the onset of the COVID-19 pandemic, the foundation

I have been entrusted with makes me incredibly excited. Not

– together with the help of the Rotary Organisation and

only will I be interacting with various likeminded delegates

Helderberg Ubuntu Feeds – reallocated its funding and has

and intellectuals from all over the world, but I will also be

been able to distribute, to date, over 6,000 food parcels, and

contributing to our society; discussing the issues South Africa

has provided protective masks, sanitisers and soaps to families

faces to an international platform.”

who had been overlooked by the government.

Recipe for success

Hali Trust, The Red Cross War Memorial Children’s Hospital, and

The foundation also supports local organisations such as the McPherson admits that taking his business prowess from

Heartlands Baby Sanctuary.

his bedroom where he started his consultancy in 2015, to the boardroom where he now oversees 52 staff locally and internationally – was a big shift for him.

“I went from being a sole proprietor to running two international companies,” he adds. “My success is owed largely

Hitting the books Despite an incredibly busy schedule, the young entrepreneur and Parel Vallei High School alum is currently in his second year of an LLB degree via Unisa.

in part to the unwavering support my family and friends give me.”

McPherson also cites focus as a key characteristic he has honed over the years.

“I would rather give one hundred percent to a few endeavours than 20% to many.”

Amongst his accolades, McPherson holds several titles. In 2018, he was awarded the Investec Bank Out of the Ordinary

Spare time When not running successful companies or doing good for others, McPherson can be seen flexing his political muscles advising on inter-ministerial committees for procurement in South Africa and Angola. And when not travelling for leisure or playing water sports, McPherson can be found indulging in the culinary arts and oenology. ■

Award and received a Forbes 30under30 fellowship in the USA. He was also runner up at the 2017 Small and Medium Enterprise Association of South Africa’s (SMESA) Youth Entrepreneur of the Year Awards.

Doing good In 2018, McPherson understood that he was in an unusually privileged position at such a young age, and so at 18 he founded the McPherson Foundation as a charity aid organisation. Through strategic investments, donations, and government funding, the foundation strives to uplift through empowerment. Rather than just donating money, the foundation puts programmes in place to uplift communities by working closely with their local ward counsellors, the municipal and provincial government, as well as various other NGO's within the areas.

Tony McPherson

Tony McPherson awards and accolades

• 2020 appointed Youth Representative for South Africa to the Model United Nations (MUN) • 2019 ARAB Health Conference - Awarded title of world’s youngest CEO of an international pharmaceutical company • 2019 winner of NSBC Youth Entrepreneur Champion Award • 2019 McPherson Trading was placed among the top 20 SMMEs in South Africa • 2018 winner of the Investec Out of the Ordinary Award • 2018 received a Forbes 30under30 fellowship in the USA • 2017 runner up at the Small and Medium Enterprise Association of South Africa’s (SMESA) Youth Entrepreneur of the Year 24

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EDITORIAL SMEs & COVID-19

Cut the costs, not the dream

- how SME’s can seize an opportunity despite COVID-19

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EDITORIAL SMEs & COVID-19

SME’s across South Africa are counting the costs of the pandemic and its devastating impact on business. The fact is, according to a McKinsey study: How South African SMEs can survive and thrive post COVID-19, SMEs represent more than 98% of businesses, employ between 50-60% of the country’s workforce across all sectors, and are responsible for a quarter of job growth in the private sector1.

I

n addition, the same study says that ‘business confidence

to individual employees is often cited as problematic.2 In South

has fallen too’. In a flash survey, conducted in April 2020,

Africa, unless you buy mobile data in large bundles, such as

just over a third of businesses surveyed expressed that they

60GB or 80GB, then cost per megabyte becomes expensive.

are pessimistic about the economy and economic outlook

This can of course be perceived as a barrier to entry to business

and more than 30% indicated that they expected revenues to fall by between 5 and 50% over the next six to 12 months

owners who want to pursue an online model.

However, as Radmore indicates, in the short term this could

leading to negative profits in excess of -5%. The consequences

be seen as a negative but the cost per square meter of an

of COVID-19 on the economy are undeniably severe. Business

employee onsite vastly negates this cost. Additionally, when

owners are therefore experiencing an unprecedented level

you can use on online platform to identify potential customers,

of anxiety. Conversely, according to a recent study, 56% of

without the direct need for a sales force, the costs are lowered

directors at enterprise businesses say lockdown has been their

even more. BuzzApex’s catalogues provide excellent marketing

most innovative time at the company3.

tools, geographically based but at a lower cost to the consumer

The COVID-19 pandemic has provided an unexpected

to access because there are no images. Technology is a tool

opportunity for business owners to assess what does and

that must be harnessed. At a time when most businesses are

doesn’t work, what they can do better, and what needs to be

trying to survive within the parameters of their current thinking,

improved. For many, this is their relationship with technology.

technology provides an opportunity that goes outside the box,

Online business productivity platforms such as BuzzApex are

and ticks it.

making the case for using the internet as a powerful tool to

“Ultimately, now is not the time to sit back and wait until the

communicate, conduct business and even reach customers

problems pass. It is the time to take action, reconsider your

in novel ways. This echoes the research that says that 96% of

strategy and battle for survival with an effective online strategy,”

enterprise businesses and 90% of SMEs say lockdown has

concludes Radmore. ■

increased the priority of digital transformation .

3

“Now is the time for a change. While choosing to opt for an online platform for the day-to-day running of your business may seem like a daunting task in the short-term, it will pay dividends in the long-term by enabling you to compete in an evolving marketplace. The opportunity to offer a free-to-access online platform to SME’s is inspiring at a time when businesses need it most. BuzzApex provides an essential tool that proves compliance, tracks assets, promotes sales, and market expansion. It levels the playing field between small and large businesses, “ says Ivan Radmore, CEO of BuzzApex.

For many companies, remote working has become a reality, one that comes with additional costs. This includes the cost of data provided to staff. There is no getting away from the fact that the cost of mobile data can put business owners off the idea of having staff off-site. The high cost of data to be supplied

Ivan Radmore, CEO of BuzzApex

References: 1 https://www.mckinsey.com/featured-insights/middle-east-and-africa/how-south-african-smes-can-survive-and-thrive-post-covid-19# 2 https://www.businessinsider.co.za/how-sas-data-prices-compare-with-the-rest-of-the-world-2020-5 3 https://econsultancy.com/agility-vs-innovation-how-smes-and-large-businesses-have-responded-to-covid-19-survey/

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EDITORIAL WEALTH MANAGEMENT

Three wealth management

trends to watch in 2021 The COVID-19 pandemic has been one of the greatest disruptors in living memory, causing major upheaval across all facets of our everyday life. Within the wealth management space, it has further acted to accelerate many of the changes that were already in the pipeline, seeing three major trends emerge as we enter 2021:

By Maarten Ackerman, Chief Economist and Advisory Partner, Citadel 28

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EDITORIAL WEALTH MANAGEMENT

1

Taking the industry virtual Technological advancements and the fourth industrial revolution (4IR) have seen the world slowly shift from the physical to the virtual, and businesses have been playing with the idea of introducing and making use of digital solutions for years.

But the rapid changes brought on by the pandemic have forced businesses to quickly introduce remote-working and urgently seek out ‘no-contact’ solutions. Employees and clients alike have quickly adapted to meeting via Zoom, Skype and Microsoft Teams rather than face-to-face, as well as making arrangements for virtual onboarding and going paperless.

Additionally, the pandemic seems to have paved the way for robo-advice to play a greater role within the financial planning space than it has previously, especially given the meteoric advancements in computer learning and artificial intelligence (AI). While many individuals still prefer speaking directly to an advisor and appreciate the value of human contact, many also enjoy the speed and convenience of robo-advice for assistance with certain financial decisions and transactions.

2

Searching for new safe haven assets In their efforts to prop up economies and support more individuals with social grants, governments and central banks around the world have amassed huge amounts of debt. As a result, central banks have been manipulating interest rates, holding them below inflation in order to afford this debt and gradually work it down to more sustainable levels.

In effect, however, this means that central banks are using the savings that were supposed to be paid to future generations in the form of interest to fund the debt for our current generation.

The dilemma for many long-term investors, and those investing towards their retirement, is that where those seeking a low-risk portfolio would previously have opted for cash and bonds, the reality is that they will now grow poorer from the minute they place money into these types of investments. Investors and wealth managers now need to look for suitable safe haven alternatives to cash, constructing portfolios from assets that are still absolute return in nature (or that are able to generate returns above inflation), but from a diverse range of asset classes.

These may include assets such as the Swiss franc or Japanese yen, which have typically performed well when the wheels fall off equity markets. Although they currently offer depressed yields, US bonds may also merit consideration as one of the best uncorrelated asset classes that still offers benefits in difficult economic times. Gold, silver and palladium also represent attractive alternatives. And finally, once they are properly regulated, certain cryptocurrencies may also begin to earn a position as safe haven asset.

3

Introducing better cost solutions We are now entering a low-return environment, and the typical equity portfolio is only expected to deliver mid-single digit returns on the basis that cash and interest rates, the discount rate, are currently at all-time lows. Additionally, capacity growth will slow as the world recovers from the pandemic, and a shift in geopolitical trends towards a more inward focus with less trade will also cap economic growth potential.

This slowdown is again likely to be reflected in more muted equity returns, bringing heightened attention and downward pressure to bear on fees. In this type of environment, investors and wealth managers therefore need to ensure that investment solutions are competitive and cost-efficient.

It’s therefore positive to see players in the wealth management industry becoming more creative in terms of their pricing structure. Furthermore, developments in the virtual world mean that there are also a number of savings to be found in transitioning away from old ways of doing business that can be seeded down to clients. The industry is currently combing through the entire investment supply chain in order to introduce cost-efficiencies with new technologies, from client onboarding, to making use of AI support in generating active investment strategies, right down to investment platforms and products.

Overall, there are many exciting and challenging times ahead for the wealth management. It will be extremely interesting to watch how the industry responds to these latest trends and developments, and what new innovations may emerge. ■

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29

EDITORIAL WORKING REMOTELY

South Africa’s business model

has forever been disrupted Working from home is the new normal but business owners must have the right processes in place to remain productive.

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EDITORIAL WORKING REMOTELY

T

he COVID-19 pandemic and subsequent move to

“Every company, irrespective of its size”, she stresses,

remote working has put many companies under

“needs to have employee policies and procedures in place

pressure as they navigate a new way of managing

that guides the Company culture and actions in terms of

remote workforces. Small businesses are taking

employee relations. It furthermore sets the condone actions for

substantial strain during this time given their limited access to resources, and often they lack the experience in handling human capital issues.

Managing remotely poses a number of unique challenges.

How, for example, does the company ensure remote workers are doing what they are supposed to be doing, when they are

employees”.

While some businesses recruit staff on little more than a handshake and don’t believe they need contracts, policies and procedures in place, from a legal perspective this is actually not sufficient.

“Employees need to be reasonably informed of their terms

supposed to be doing it; that they are on task and on schedule?

of employment as stipulated within the Basic Conditions of

How do you keep them motivated over extended periods of

Employment. Should the relationship with the employee sour

time?

for any reason and the employee takes the company to the

“Policies and procedures become increasingly important when you are managing a remote workforce,” reveals Drina Meyer-Jardine, CEO of MJ Specialised Consulting, a professional business support services consultancy.

Many small and even some medium sized businesses were

CCMA or respective Bargaining Council, it’s important to, at the very least, have an employment contract in place.

“Even businesses with only one or two employees need to have employment contracts for their staff, and policies and procedures available”, she says. “And while many of these

caught on the back foot at the outset of the lockdown with

documents are freely available on the Internet, rather than using

no policies or procedures to fall back on in terms of guiding

generic documents, they should be specifically structured for

the business’s expectations of employees and employees’

each business’ unique culture and requirements.

expectations from the employer.

One of the biggest challenges, many businesses have found,

“Professional advice is an investment that will reap a significant return in the long term and means the business can

is managing less motivated staff members who may use the

avoid potentially falling foul to any regulations,” Meyer-Jardine

opportunity offered by working from home to do their own

adds.

personal chores during the working day. which offer reporting, diagnostics and analysis to measure what

Focus on employees’ well-being and mental health

work the employee has done during the course of the day,”

Another priority for management is to be focused on

says Meyer-Jardine. “Certain cloud-based digital applications

employees’ well-being and mental health at a time when staff

can even track the employee’s physical whereabouts using GPS

members may be feeling isolated and suffering high levels of

technology.”

stress.

“In addition to time sheets, there are technological offerings

“Where time sheets are used”, she adds, “it is important

“There is no question that a lack of human connection will

to stress on employees the consequences of fraudulent time

be taking its toll on employees, which is why managers and

keeping”.

business leaders need to be empathetic. They need to put aside regular time to connect with each employee. If possible, they could also allow small groups of staff to come in to the office on alternate days. Rewarding and acknowledging staff for a job

Professional advice is an investment that will reap a significant return in the long term and means the business can avoid potentially falling foul to any regulations.

well done with something like a voucher will also go a long way towards making employees feel valued and appreciated,” she suggests.

“Although remote workforces may be harder to manage initially, there are certain benefits to having staff work offsite”, maintains Meyer-Jardine, “including the fact that companies can grow their workforces without having to invest in larger business premises. There is no question that remote working is here to stay, so it makes sense for business’s to successfully navigate what is involved in managing remotely.” ■

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EDITORIAL CONTINUOUS LEARNING

How continuous learning

helps business to innovate

By Michael Gullan, co-founder and CEO of G&G Advocacy 32

SA PROFILE www.saprofilemagazine.co.za

EDITORIAL CONTINUOUS LEARNING

For businesses to remain competitive, they need to innovate, adapt, motivate and encourage their employees to expand their skill set and gain expertise. At the core of this, employees need sufficient and continuous learning and training to contribute to the success of the organisation — a win-win for businesses and employees.

A

Gallup poll indicates that disengaged employees

3.

Levels the playing field: By making digital learning and

cost the global economy $7 trillion in lost

training opportunities available, organisations can also

productivity each year. To address this concern,

bridge the critical digital skills divide across the business.

more organisations are showing support to their

Each employee will be able to upskill themselves without the

employees by offering learning and training opportunities

fear of being stereotyped, which can foster a positive attitude

that keep them engaged, feeling valued, and helping to grow

in the workplace and boost employee productivity.

their professional development, especially during the global pandemic.

Businesses are evolving, and with the pandemic, there is

Businesses that prioritise digital learning and training opportunities will reap the benefits of employees' professional

an urgent need for them to address employee engagement

development and their employability skills. These organisations

that adds growth through learning and training. Digital

will also be identified as employers of choice, who show their

learning and online training are flexible and effective methods

commitment to people and growth. ■

for employees to choose to learn in their own time. In addition to being online, G&G Advocacy makes strong use of microlearning through our bespoke methodology called Content Capsules™, which are specifically tailored to the needs of adult learners and helps to produce deeper, more effective learning experiences.

Digital learning and training opportunities cater to timestrapped employees and challenge them to learn, improve and excel continuously. These digital learning and training opportunities also make it easier for employees to retain the information they learn, empowering them to integrate and implement their learnings, boosting employee performance and overall innovation in organisations.

Here are three ways continuous learning can benefit employees and organisations.

1.

Stay relevant: Employees remain at the forefront of developments in their industry and beyond. By accessing digital learning and training opportunities, employees can diversify their skills, which will benefit their professional development.

2.

Build confidence: Employees feel a sense of accomplishment when completing learning and training programmes, which boosts their confidence. Their enhanced confidence makes it easier for them to apply the learnings, and it will also push them to step out of their comfort zones and embrace new opportunities within their organisation.

Michael Gullan is the Co-Founder and CEO of G&G Advocacy www.ggadvc. com. A tactical strategist and strong leader, Michael is an out-of-the-box thinker who is passionate about G&G Advocacy's clients and brands. G&G is an independent digital agency with a passion for quality, smart creative solutions and sound strategies founded on deep insights.

G&G Advocacy™ was founded out of the need for organisations to provide smart-working digital solutions to learning and training that are aligned with the way people want to access information, learn, acquire knowledge and develop their skills and feel confident to advocate for their product or service.

Everything we do stems from that simple idea: if we design a better experience, together we'll get better results. Workplace learning and development doesn't need to be boring. G&G Advocacy™ assists organisations to gain a lead in their sectors by ensuring they deploy key information to develop their staff, learners, advocates, customers, partners, franchises and other external stakeholders with skills and information so they can outperform their competitors and ultimately advocate for the organisations product or service.

SA PROFILE www.saprofilemagazine.co.za

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PROFILE SOL PLAATJE UNIVERSITY

Dr Tendai Musvuugwa – tackling emerging problems in plant pathology SA PROFILE spoke to Dr Tendai Musvuugwa, a senior lecturer in the Department of Biological and Agricultural Sciences within the School of Natural and Applied Sciences at Sol Plaatje University.

A

fter completing her Bachelor of Science Honours degree from the National University of Science and Technology in Zimbabwe, Dr Musvuugwa was awarded a scholarship to undertake a Master of

Science degree in Conservation Biology at the University of Cape Town.

Following that, she was awarded another scholarship from the Centre of Excellence in Tree Health Biotechnology (CTHB) to pursue her PhD research in Botany at Stellenbosch University, where she graduated in 2014.

Her PhD research gave birth to her interests in plant, fungal and arthropod interactions, which is still the focus of her research today. Some of her notable research work has investigated the biodiversity of ophiostomatoid fungi associated with trees in the Afromontane forests of the Cape Floristic Region, which is a biodiversity hotspot. Most recently, she adopted a multidisciplinary research approach where she is also building interest and expertise on the effects of climate change on plant phenology over a long period.

Dr Musvuugwa actively collaborates both nationally and internationally with some of the top-rated scientists in this field to

Dr Tendai Musvuugwa, a senior lecturer in the Department of Biological and Agricultural Sciences within the School of Natural and Applied Sciences at Sol Plaatje University.

tackle the emerging problems in plant pathology. She is part of a team that recently successfully acquired an NRF/NSF funding for research in bark beetle Mycobiome over a period of five years.

Her work has been recognised and presented at several national and international conferences, has been published in several accredited peer review journals and won awards such as the prestigious African-German Network of Excellence in Science.

Sol Plaatje University T +27 53 491 0000 E information@spu.ac.za W ww.spu.ac.za 34

SA PROFILE www.saprofilemagazine.co.za

Besides focusing on her lecturing and research career, Dr Musvuugwa is also passionate about mentoring, guiding, advising and motivating young scientists to help them to achieve their academic goals. ■

PROFILE SOL PLAATJE UNIVERSITY

Dr Marga Stander

– nurturing second language acquisition and learning, sign language and deaf culture SA Profile spoke to Dr Marga Stander, a senior lecturer in the Department of Language and Communication within the School of Humanities at Sol Plaatje University.

D

r Stander studied BA Drama and Theatre Studies and obtained an Honours degree in Afrikaans Linguistics from the University of the Free State.

She began her academic career at the University

of the North in Phuthaditjhaba, where she taught Afrikaans linguistics to second language speakers. She also holds a Master of Arts in Afrikaans Sociolinguistics and a PhD in Second Language Acquisition in Afrikaans.

Dr Stander taught English and visual arts to deaf students at the Thiboloha Special School in Phuthaditjhaba through the medium of South African sign language, during which time she also obtained a PGCE at Unisa and a B.Ed Honours degree in Deaf Education at Wits University She was the coordinator of the Writing Centre and Unit for Language Development at the Phuthaditjhaba Campus of the University of the Free State. Whilst in this position, she received the Student Engagement award, the Teaching and Learning Innovation award and an award for advancing the scholarship of teaching and learning.

At Sol Plaatje University, Dr Stander teaches English and Afrikaans in the School of Humanities, Communication in the School of Economic and Management Sciences, and South African sign language as a conversational language in the School of Education.

She has published articles on topics about second language

Dr Marga Stander, senior lecturer in the Department of Language and Communication within the School of Humanities at Sol Plaatje University.

acquisition, deaf culture and plagiarism. She has also presented several conference papers on second language acquisition and learning, sign language and deaf culture locally and internationally.

Dr Stander is a research associate at the Department of South African Sign Language and Deaf Studies and a member of the Northern Cape division of the Pan South African Language Board (PANSLAB) and acts as an adjudicator at debate competitions in

Sol Plaatje University T +27 53 491 0000 E information@spu.ac.za W ww.spu.ac.za

schools for the deaf in the Northern Cape.

She is busy writing a series of 20 children’s books (in Afrikaans and English) on the birds of Southern Africa (facts and fiction) in which she does both the text and illustrations. ■

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PROFILE SOL PLAATJE UNIVERSITY

Dr Christelle Meniago – fostering understanding of developmental problems plaguing developing economies SA PROFILE spoke to Dr Christelle Meniago, a senior lecturer in economics within the School of Economics and Management Sciences at Sol Plaatje University.

D

r Meniago's primary research interests lie in macroeconomics – including international economics, and development economics – where she is particularly interested in using advanced

econometric techniques that can help better understand and solve developmental problems that are plaguing developing economies, mainly in Africa.

Before beginning her academic career at Sol Plaatje University in 2018, she worked as an economist/ econometrician at NKC African Economics, an Oxford Economics company, with her main tasks centred around overseeing and analysing the macroeconomic situation of selected Sub-Saharan African countries.

Prior to that she was a consultant at the World Bank Group in Washington DC in the Office of the Chief Economist for the Africa region.

Dr Meniago obtained both her Masters and PhD degrees in Economics from North West University. She is the author or co-author of several academic articles, as well as book chapters published in international accredited platforms. She is also an academic journal reviewer.

When she is not keeping abreast of the latest economic

Dr Christelle Meniago, a senior lecturer in economics within the School of Economics and Management Sciences at Sol Plaatje University

Sol Plaatje University T +27 53 491 0000 E information@spu.ac.za W ww.spu.ac.za 36

SA PROFILE www.saprofilemagazine.co.za

developments, Dr Meniago can be found reading about business ventures in Africa. ■

EDITORIAL COVID-19

What the Pandemic

taught us The world is still reeling from the enormity of the impact of the COVID-19 pandemic on our seemingly ‘normal’ operations and lives. For businesses, there have been significant disruptions in how strategic, operational and external risks are viewed and handled, many of which have been amplified by the influence of the pandemic. No matter which way you approach it, COVID-19 has fundamentally changed the parameters for business of what constitutes success in the future, and how risks will be measured and mitigated.

By Craig Kent, Head of Risk Management at Aon South Africa

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EDITORIAL COVID-19

W

hat is very clear is that what leaders and risk

Lesson #1:

managers may have thought are likely risks

Legal and compliance

to be faced in their business operations

• Changes to ongoing transactions and construction Force

has been given a big dose of reality and

Majeur (FM) and Material Adverse Change (MAC) clauses

lousy-tasting medicine. Without discounting the known and ‘typical’ business risks – these were with us before the pandemic started and will continue to be relevant – however

in contracts should by now have materialised, leaving the business to navigate and amend future approaches.

• Occupational Health and Safety (OHS) Act – what was the

their rating on our risk registers and their influence over our

demonstrated response to commitment of health, safety

medium to long-term plans has very likely changed. The

and wellness of staff, tenants and the community and to

realisation that no risk is too far-fetched or unlikely to occur is

what extent emergency measures adopted during the

rapidly settling in.

pandemic become permanent, and to what cost versus benefit?

Winston Churchill once said: “Never let a good crisis go

• Environmentally-friendly approach to cleaner, greener and

to waste”. There is much correlation with where Churchill

smarter properties – revise all Capex plans to dovetail into

found himself and indeed the world as they emerged from

a centralised risk and procurement approach that is eco-

the devastation of World War II, and how we navigate our

friendly.

way forward as we emerge from this globally synchronous pandemic disaster.

Lesson #2:

Stakeholder disclosures and guidance A business response to risk should be based on a solid,

• The impact of COVID-19 is likely to be long-term, so

resilient and flexible risk framework that is supported from

businesses need to determine how to communicate the

the top to the bottom. The success of the reaction process to

impact of COVID-19 on upcoming earnings through

a perceived or imminent risk hinges firstly on how informed

managing expectations relating to share buy-backs and

the risk framework is in terms of operational, strategic and

dividends.

financial factors related to the business, which requires reliable data in real time; and secondly requires a structure

Lesson #3:

that efficiently interrogates and interprets this data once placed in the framework for processing and appropriate

Strikes, riots, civil commotion, malicious damage

response.

• The socio-economic implications of COVID-19 are significant and far-reaching, creating complex security

Well-formulated risk programs that complement the

challenges in the long-term. Organisations should consider

business structure and plans underpin the information

whether their operations have the potential to be affected

required for the board to make timeous and informed

by widespread protest action and civil unrest, review the

decisions on both known and unknown exposures. This

potential impacts and how their insurance programmes will

is where risk transfer starts to play a significant role as the

respond.

business identifies what risks it is comfortable facing on its own through self-insurance tools, and what risks need to be

Lesson #4:

transferred to an insurer. It’s a delicate balance that requires

Cost management / reductions

serious discussion with expert brokers and risk advisors in

• If there is a need for discernible cost reductions, identify

the field.

where and to what extent, and what the implications are of such reductions across the business.

COVID-19 lessons for long-term risk management and strategic planning Going into 2021, it is wise to interrogate the many

• Re-appraise Capex expenditure by evaluating non-core assets, lease agreements and planned developments in addition to interrogating associated risk factors.

important lessons learned in 2020, and how these will influence short, medium and long-term business planning

Lesson #5:

in the face of an unprecedented crisis. Aon unpacks the key

Relief, insurance and alternate risk transfer

lessons and factors to be considered as businesses move

• Identify possible government relief funds to be accessed.

into the recovery and beyond phase of the current pandemic.

• Investigate potential business interruption claims and

SA PROFILE www.saprofilemagazine.co.za

39

EDITORIAL COVID-19

adjust the insurance portfolio’s future outlook.

• Identify alternate risk transfer methods available in the market, allowing the business to take ownership of smaller

Lesson #10:

Failure to innovate and meet customer needs • Identified as one of the top 10 risks facing businesses in

risks with an overarching insurance band that will respond if

Aon’s 2019 Global Risk Management Survey, this risk took

larger losses are triggered.

centre stage during 2020, focusing an uncomfortable spotlight on business agility and ability to digitise, change

Lesson #6:

business models and offer readily available alternative

Liquidity

products and services. Is your business ready for 2021?

• The pandemic intensified the negative financial impact on businesses, with more and more organisations failing

“The only certainty is that the future is uncertain” has been

to meet their financial obligations, filing for business

the clarion call for 2020, and with 2021 promising its fair share

rescue proceedings or liquidation. Ensuring your business

of uncertainty, it is crucial to take what we have learned from the

continuity is crucial and one means of achieving that goal

pandemic and apply it to our long-term risk management and

is to protect your business against defaulting debtors with

strategic planning. The world is a very different place in so many

trade credit insurance.

fundamental ways. This makes it crucial to interrogate your risks and to put a flexible, robust and adaptable risk framework in

Lesson #7:

place - a task best undertaken with an expert broker and risk

Mergers and Acquisitions

advisor by your side.

• Identify possible windows of opportunity and inherent risk factors as the market is likely to condense and consolidate to stave off the effects of a shrinking economy.

It is here where Aon’s data-driven insights provide value and opportunity. As specialists in risk mitigation, risk and business continuity management, we implicitly understand

Lesson #8:

Cyber Risk • If there wasn’t a big cyber exposure before the pandemic,

the need to always stay ahead of the curve. COVID-19 – and future pandemic risks – will without a doubt continue to test every organisation’s resilience planning in future and there is

there may very well be now in the rapid shift from ‘brick to

still much unchartered water to cross. What is not unchartered

click’ and remote working which are likely to be ongoing

is our response to it. It is here where Aon’s fact-based insights,

trends for many businesses.

processes, skilled people and technology platforms ensure

• The pandemic has fundamentally changed the way we

optimal decision making and functionality to provide you with

conduct business in respect of mobile, cloud and remote

a solutions-based management approach to insurance and

working and this has significant cyber risk implications

advice, combined with a risk management strategy to help you

that need astute planning, risk mitigation and business

protect your people, assets and brand, now and into the future

continuity planning.

with certainty and stability. ■

Lesson #9:

Changing property market • Rental space and changes to occupancy rate classes.

Identify property rentals or triple Nett lease exposures where the space is utilised for operations other than intended use of the space – this can have a material impact on liability exposures as far as health and safety and due diligence matters are concerned.

• Rent collections and growth – Many businesses are downsizing amid the work from home movement in addition to businesses closing their doors, fundamentally impacting the property rental, development and construction markets.

• Land Rights – With ongoing uncertainty relating to land rights in RSA, identify the potential of properties exposed to this risk and a suitable course of action.

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Craig Kent, Head of Risk Management at Aon South Africa.

Image supplied by Energas Techologies (Pty) Ltd

| |

EDITORIAL ENTREPRENEURS & HUMAN RIGHTS

Entrepreneurial impact and human rights The work of innovative entrepreneurs is to take new knowledge and opportunities to create new businesses, and even new markets, to deliver increasing value.

By Yogavelli Nambiar, CEO of the Allan Gray Orbis Foundation

42

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EDITORIAL ENTREPRENEURS & HUMAN RIGHTS

T

hey are change agents on a journey into formal

the education received by the majority of the current generation

economic environments, with the potential to

(and of our Millennials) and the education they need to be

integrate into the global economy. As they follow

skilled for today’s work.

their paths, they solve problems for people, they

According to Statistics SA, 2.5 million young people aged

include others and, in the long run, directly or indirectly,

15 to 34 are now unemployed with an overall 11 million South

contribute to social wellbeing.

Africans unemployed. Low educational standards in under-

In the framework of the United Nations (UN) 17 Sustainable

resourced schools leave job-seekers poorly-equipped, and

Development Goals (SDGs), entrepreneurs are poised to make a

a world away from being 4iR job creators. This is a lack of

significant impact on increasing people’s access to their human

fulfilment of their rights to education.

rights when they bring products and services to market that are desperately needed to drive social development.

Entrepreneurs are intrinsically inspired by the prospect

#GEW2020 #Ecosystems highlighted the often-overlooked and challenging-to-achieve entrepreneurial success factor of

of betterment. If they can navigate the immense challenges

being immersed in networks and connections with ease of

of starting up, scaling and sustaining growth, they change

access to vibrant partnerships and collaborations that can help

not only their own fortunes, but they can positively impact

propel a venture.

the livelihoods and lives of those in their ecosystems and

These kinds of ecosystems are healthy when there’s diversity,

communities. In doing so, they can bring about economic and

productivity, resilience and efficient organisation. Endemic

social transformations.

poverty, and other socio-economic factors such as crime and spatial segregation, compromise the robustness of the

SA has to come together to do more to enable entrepreneurial success However, as we know from South Africa’s below average rates

ecosystems available to budding entrepreneurs trying to start up and scale up in SA’s townships and rural communities.

This is a lack of fulfilment of their rights to decent work, and

of start-up success, the entrepreneurial journey in our country is

compromises the overall aim of human rights to achieve a

particularly arduous and fraught with high risk. We have a great

dignified life.

wish to see innovators take the abundance of knowledge in the world and apply it to solve our socio-economic problems.

If we want to ignite the possibilities for entrepreneurs to help

SA’s #GEW2020 celebrated the life-changing possibilities of entrepreneurship aimed at raising awareness around how entrepreneurially minded individuals with ethical values and

millions of South African people live dignified lives through

strong leadership skills can improve the socio-economic

improved access to their human rights of food security, quality

landscape of South Africa.

education, decent work, health and housing, then the country

Through Global Entrepreneurship Week, SA start-ups and

has to come together to do much, much more to enable and

young innovators engaged with an international community

promote entrepreneurial success.

of entrepreneurs to learn and to share, to connect and to

Connecting SA innovators

collaborate in pursuit of the prospect of betterment. ■

In celebrations of Global Entrepreneurship Week, the Foundation staged a slew of activities and events for the ecosystem and South African 'imagineers' and innovators who joined 80 000 international counterparts from 180 countries.

To connect South Africa’s innovators with the international #GEW2020 community, the Association of Allan Gray Fellows curated a week-long programme of digitally broadcast events via the Hopin platform. #GEW2020 #Education focused on how education can expose people of all ages to entrepreneurship, nurture creativity and develop critical innovation skills – from early childhood development centres through to tertiary education institutions.

The SA education system is yet to transform meaningfully to the 4iR context. There’s a deeply troubling disconnect between

Yogavelli Nambiar, CEO of the Allan Gray Orbis Foundation

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43

PROFILE NOVA PROPERTY GROUP (SA)

Successful business through

a strong female presence & respectful leadership Dominique Haese, CEO at Nova Property Group (SA)

I have some 26 years’ experience in financial management and reporting, taxation and auditing in various industries, of which 17 years have been in property, with 9 years in property development leadership, developing and managing commercial, mixed-use and residential property, with the view to enhancing the bottom line.

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PROFILE NOVA PROPERTY GROUP (SA)

O

ne of the boldest decisions of my career was

itself in being competitive and pro-active in rendering services

when I decided to head up the restructuring

timeously and accurately.

of some R4.5 billion property syndicated investments.

During 2010, the Reserve Bank closed the South African

property syndication industry. Hundreds of thousands of property syndication investors (PS investors) lost their livelihoods, basically overnight.

Whilst in discussion with Reserve Bank officials, I made

It has been a privilege for me, given my finance, taxation and auditing background, to have seen first-hand how Frontier has grown to where it is today. Most significantly, how its employees have thrived. Frontier’s staff turnover ratio is incredibly low.

The above has been achieved through respectful leadership, something I learned over the years as I worked myself up through the corporate ranks in a very male dominated industry.

myself available, procured a Board and together proposed

Anchored therein, I developed one of my core attributes of

to some 20 000 PS Investors, four Schemes of Arrangement

leadership: to aspire to lead by respecting and valuing each

(Schemes). These Schemes were voted in favour of and we

employee.

were voted in as directors by a majority of PS investors.

It is imperative for any leader of a successful establishment

The Schemes were sanctioned by the High Court in January

to ensure employees are empowered through growth within

2012 and the PS investors became debenture holders in Nova.

their employment. Without thriving and loyal employees, an

The aim of the Schemes was to secure properties linked to PS investors’ historical investments, fend off liquidations, manage underlying properties, obtain funding for value enhancement, growth and sustainability, and ultimately enable cash payments to the debenture holders.

Through the above, Nova Property Group was established

establishment cannot exist successfully.

I find the above criteria key attributes for anyone in a leadership position.

Through experience, I found that women in business have a natural ability to get on with things and in a most organized fashion. For this reason, I chose to build a team of women in the

in 2011 and I was appointed its CEO. Today, Nova consists

companies I head up, including executive and non-executive

of an independent group of companies, controlling assets

seats at the Board table. This strong female presence has

comprising a balanced mix of commercial properties, both

benefitted the workplace environment.

retail and office, and mixed-use residential developments throughout SA, worth more than R2.56 billion, providing comprehensive property management and land development.

As CEO, I decided a few years ago to take on the additional

Women have, however, family responsibilities and the corporate realm unfortunately does not always favour women.

As a woman and mother, I believe I am more attentive to the needs of employees and have always made the extra effort

role of project development team leader of Nova’s residential

to find ways to create a more thriving environment for them. I

and mixed-use property portfolio, wherein I, together with the

appreciate that women, in particular, need to be empowered

professional team, oversee the process of developing and

within the company.

managing same.

Nova has an assortment of such projects, located throughout South Africa, all carefully prepared, consolidated,

It is key that a corporate culture must be established within a company, starting with its leadership, respecting, recognizing and supporting the needs of women in the workplace.

subdivided, zoned and in different stages of development. These range from residential full and sectional title units, retirement, frail care and medical facilities, to affordable housing and estate living. Many of these projects, all offering favourable returns on completion, are lined up and ready for development funding, either equity or debt.

Frontier Accounting and Secretarial Services In 2011, I, together with a handful of individuals, established Frontier, which I have headed up since.

Today, Frontier has evolved into an experienced accounting, finance, tax, administration, secretarial and communication services company. Frontier prides

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45

PROFILE NOVA PROPERTY GROUP (SA)

This is easily achieved. As an example, Frontier provides the following benefits to its employees: • In terms of Section 10(1) (q) of the Income Tax Act, Frontier provides bona fide scholarships or bursaries to employees and their relatives to study at a recognized educational or research institution.

• Frontier assists professional employees with their continuing professional development, to not only shape their strategic approach in their career but also to ensure that standards across Frontier are high and consistent, promoting a greater workforce engagement and enhancing employee commitment to job roles.

• Frontier further assists employees with study loans and training that can further their career within the company.

In closing The past nine years have most certainly been the most challenging of my career. Such a large restructuring, by its mere nature and given its history, brings with it much criticism and negativity, further fuelled by unjust negative and even incorrect media reporting, unfortunately resulting in many funding lines and equity partnerships not coming to fruition.

Nonetheless, Nova has steered a steadfast course and through perseverance has achieved: •

successful capital payments to many debenture holders

• property value enhancement of many of its properties for future capital payments to debenture holders As Nova’s CEO, together with my Board, our incredibly dedicated employees, committed professional teams, business associates, partners and supportive stakeholders, we know the potential Nova has in making this a success story.

We are committed in continuing to build on the positives achieved and are confident that the role players, both in the financial sector and the property sector, locally and abroad, will eventually join forces with Nova and its cause and invest in Nova, to further unlock value for both stakeholders and debenture holders of Nova. ■

Nova Property Group T +27 (0)12 425 5000 E admin@novapropertygroup.co.za W www.novapropertygroup.co.za 46

SA PROFILE www.saprofilemagazine.co.za

Dominique Haese, Education and Membership: Bridging PG Dip - Accounting/CTA (Postgraduate Diploma in Accounting) – Milpark, 2020 BCompt – UNISA, 2003 SAICA Articles – BDO International, 2003 General Tax Practitioner – SAIT Principle Professional Practitioner in Real Estate - EAAB Member of the SA Council of Shopping Centres – SACSC Diploma: Computerised Bookkeeping – UNISA, 1998 Certificate: Quality Customer Service (Finance) – Technikon Pretoria, 1998 Diploma: Intermediate Financial Accounting – UNISA, 1998 Certificate: Management and Leadership – Technikon Pretoria, 1996 Diploma: Bookkeeping – Damelin, 1995 Matric: Deutsche Schule Pretoria, 1989

Frontier Accounting and Secretarial Services T +27 (0)12 425 5000 E admin@frontieram.co.za | W www.frontieram.co.za

EDITORIAL MENTORING ENTREPRENEURS

Driving entrepreneurial growth

through mentoring

The rise in the amount of knowledge sharing and mentoring by businesspeople through partnerships with SMEs and entrepreneurs to help them survive and succeed, has been, and continues to be, a silver lining in the overwhelming COVID-19 cloud. It’s a new reality that needs to be encouraged to grow across all sectors of business.

By Andrew Weinberg, CEO of 2Engage

T

he significant number of jobs losses in South Africa in 2020 now means there are more people who need to find some way to bring in income – many will become entrepreneurs and will start small or even medium enterprises.

A significant proportion of business survivors in this pandemic are themselves entrepreneurs. From the outset, they had reduced operational costs, they understand their markets, and were able to streamline and adapt to the rapidly changing economic environment.

For instance, in a local street in the northern suburbs of Johannesburg, out of five eateries that existed before the pandemic, one has survived – the one that was the most popular before the crisis. There are valuable learnings to be shared there that could make a difference to struggling SMEs or start-ups.

If a few thousand successful businesspeople take it upon themselves to advise, mentor and support just 10 entrepreneurs or potential small businesses each – according to their own time availability – and those mentored entrepreneurs then each partner with 10 more, ad infinitum, the number of successful and growing businesses would escalate exponentially.

stages of the FNB Innovation Awards. Since then, I have been in a position to share knowledge and experience with aspiring entrepreneurs, both through Endeavor and on other SMEbuilding platforms in South Africa, on a partnership, rather than on a ‘teaching’ basis.

From the start of the pandemic, it has been inspiring to see a definite and strong growth in the willingness by businesspeople – corporates and entrepreneurs – to work with smaller companies, building new partnerships, networking, encouraging innovation, and driving growth in those businesses.

This form of ‘paying it forward’ makes sound business sense – every business is part of the local community and economic environment where it survives and thrives. If that environment is struggling, the business in turn will struggle. Getting involved in contributing to the growth of small businesses and entrepreneurs, will serve the business well into the future.

Just a glance at South Africa’s economic status now is enough to remind every businessperson with something of value to share, the value of sharing. Growth is imperative – and businesspeople are at the heart of that potential. ■

Entrepreneurs for entrepreneurs Personal experience with the international Endeavor organisation, a high-impact entrepreneurship movement of ‘entrepreneurs for entrepreneurs’, created to multiply the impact of its invited membership of entrepreneurs, has proven the value of knowledge sharing many times over.

The Endeavor model is designed to search for, select and scale up entrepreneurs with the greatest potential for largescale success, then spread their stories and resources to sustain lasting economic and social transformation in their home markets and beyond. In 2018 and 2019, the 26 SA Endeavor Entrepreneurs created over 4,500 new jobs and an incremental R2 billion in annual revenue.

2Engage was privileged to be selected for the Endeavor International panel in 2017, following our reaching the finalist

Andrew Weinberg, CEO of 2Engage

SA PROFILE www.saprofilemagazine.co.za

47

EDITORIAL E-LEARNING

E-Learning trends

that can help your business succeed in 2021 Thanks to the global pandemic and savvy, forward-thinking key-decision makers, many businesses have embraced e-learning to ensure they remain competitive.

The global consultancy firm McKinsey observed that business learnings were one of the most affected activities when lockdown was implemented, as almost 100% of in-person programmes were cancelled or postponed as a measure to curb the spread of COVID-19.

By Michael Gullan is the CEO of G&G Advocacy™

B

usiness learning and training is crucial in upskilling

centred around human interaction, and takes the form of online

and onboarding employees and placing learnings on

forums and class chatrooms. It's collaborative, productive and

hold can impact businesses substantially. To address

efficient, and facilitates more discussions about the learning

this disruption, businesses invested in new ways to

material amongst employees. Social learning can also help

continue valuable online learning and training for employees

employees grasp information quicker and is an excellent team-

remotely. This included using e-learning platforms, which

building tool. As technology advances, new applications will

registered a significant increase as employees worked from

make social learning even more collaborative and in demand.

home.

By making learning and training available on e-learning platforms, businesses could easily share relevant information

2. Microlearning The volume of information we're all exposed to can be

across the organisation and allow employees to learn at their

overwhelming. Add learning materials on top of that and you're

own pace, improving their retention of the learnings. A major

dealing with information overload. Microlearning breaks content

benefit of adopting e-learning is the success in retaining

into bite-sized interactive learning moments that are easy to

information. According to the World Economic Forum, learners

manage, understand, retain and apply.

can retain between 25% and 60% more information, compared

"Learners have short attention spans, and incorporating

to 8% to 10% retention of in-classroom learnings. This can only

interactive tools like videos, audio, polls and infographics

benefit employees and organisations.

into the learning material makes it easier for them to grasp

As more businesses are adopting e-learning, technology

information, and better yet, remember what they've learned,"

is driving new trends to transform and optimise learning

says Michael Gullan, CEO of G&G Advocacy, a disruptor in the

opportunities and outcomes for businesses and employees.

e-learning space.

Here are four e-learning and online training trends to look out for in 2021 and beyond.

3. Personalised learning Everyone has different learning strengths and weaknesses.

1. Social learning Social learning is an effective, new approach to learning,

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Allowing employees to learn at their own pace and in their own time is essential. Employees will feel more productive and

EDITORIAL E-LEARNING

Learners retain 25% to 60% more information when adopting e-learning.

engaged, knowing they can manoeuvre through the learning material when they are ready. This includes the flexibility to move to the next topic, even if other team members aren't yet prepared to move on. And for those who find specific topics more challenging, they won't feel pressured to review learning materials until they're familiar with it and can confidently apply the learnings.

4. Gamification Gamification is an effective way to keep employees engaged with learning materials while rewarding them on their progress and engagement with the e-learning platform.

Gamification also increases employees' retention rates and enhances their learning experience. Achievement badges and leader boards also encourage healthy competition, giving employees a sense of accomplishment and encouraging them to share achievements on their social media platforms.

2020 was a devasting year of disruption for businesses and employees. E-Learning and online training can put organisations back on track for the year ahead and help give them the edge over their competitors. As employees apply their learnings in the workspace, they become more productive and engaged, resulting in optimally performing organisations, ready to take on the competition. ■

Michael Gullan is the CEO of G&G Advocacy™, www.ggadvc.com. A tactical strategist and strong leader, Michael is an out-of-the-box thinker who is passionate about G&G Advocacy's™ clients and brands.

G&G Advocacy™ was founded out of the need for organisations to provide smart-working digital solutions to learning and training that are aligned with the way people want to access information, learn, acquire knowledge and develop their skills and feel confident to advocate for their product or service.

Everything we do stems from that simple idea: if we design a better experience, together we'll get better results. Workplace learning and development doesn't need to be boring. G&G Advocacy™ assists organisations to gain a lead in their sectors by ensuring they deploy key information to develop their staff, learners, advocates, customers, partners, franchises and other external stakeholders with skills and information so they can outperform their competitors and ultimately advocate for the organisations product or service.

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49

ADVERTORIAL SKILLS TRAIN DISTRIBUTION

Your encyclopaedia to the new era of online training We are a supplier of niche market learning resources. Ultimately, we believe in creating a better future for Africa through education and the development of skilled workers. We strive to make education as accessible as possible.

T

o the end user this means we offer more opportunities at a competitive cost on more platforms than ever before, allowing instant access to the majority of our products online.

We have embraced a hybrid learning approach, as we believe it will save our clients time and money. We are reducing our carbon footprint by embracing leading technologies. We have focused our effort towards one goal: “Giving all our learners a recognized qualification.”

Ultimately, we believe in creating a better future for Africa through education and the development of skilled workers. We try our best to make education as accessible as possible. To the end user this means we offer more opportunities at competitive cost on more platforms than ever before. Allowing instant access to the majority of our products online.

Not ready to take the e-jump yet? Not to worry, we still offer the option to buy books, DVD’s and USB curriculums. In fact, we have made this more accessible and faster than ever before with our instant checkout option. We offer delivery to anywhere within South Africa, as well as the option to collect your products at our office.

each other and the skills of management to make this happen.

This training programme sets out easy to follow guidelines for managers to create a mentally healthy work environment and a culture where their team is effectively identifying and helping to manage psychosocial hazards in the workplace.

Mental health and wellbeing

Mental vs physical

Mental health and wellbeing is perhaps the most significant health and safety issue in the workplace today. Produced in 2020, this 13part series is a comprehensive guide to dealing with this very topic.

The first eight modules provide effective tips for managing mental health and wellbeing for the manager or supervisor. The final five modules detail how workers can assist in maintaining a psychologically healthy workplace. Furthermore, it also details how to manage their own mental health.

This 13-part mental health and wellbeing training programme will arm your people with a myriad of ideas. In addition, they will learn skills on how best to deal with mental health and wellbeing.

• Creating a mentally healthy workplace is a shared responsibility.

• We can all help promote good mental health by talking openly and positively about mental health in the workplace.

• The danger of assumptions when it comes to mental health.

Aim of the mental health training video series In December 2016, the National Mental Health Commission stated that the cost of mental ill-health in Australia each year was around $4,000 per person, or $60 billion in total.

It’s a well-known fact that when workers are not feeling the best, they can’t work at their best. So, maintaining a positive approach to psychological health and safety, it just makes good business sense.

An essential ingredient to creating and maintaining a mentally healthy and well workplace is the focus of all workers to care for

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SA PROFILE www.saprofilemagazine.co.za

It also details several coping skills for workers when faced with change or stressful situations.

It achieves this by focusing on three main areas: 1. Promoting positive mental well-being, 2. Protecting workers from mental injury and illness, and 3. Addressing mental injury and illness.

Whatever type of workplace you are employed at, mental health will be an issue your workplace will be faced with not just this year but years to come.

Our range of mental health training videos are designed to educate all members of your workplace on the importance of maintaining and monitoring their own mental health and help them to understand how various factors (both internal and external) can influence it.

Managing wellbeing • A person’s basic human needs.

• The significant role the workplace plays in managing a person’s holistic wellbeing.

• The importance of diversity.

• How to positively influence a mentally healthy workplace.

A few facts and figures • Stress drivers in the workplace.

• A mental illness does not necessarily equate to an inability to work.

• A mental illness does not mean diminished intellectual capacity.

• How to deal with the worker struggling with the main requirements of their work.

ADVERTORIAL SKILLS TRAIN DISTRIBUTION

Managing the risks

Your own mental wellness

• Psychosocial risk factors in the workplace.

• Stigma in regard to a mental illness versus a physical injury.

• The importance of measuring the effectiveness of any controls put in place.

• The importance of consultation in workplace health and safety.

• What is mental health?

• Several ways to accomplish emotional wellness.

• The importance of relationships.

• The importance of mindfulness.

Stress management

The warning signs • The 20 possible indicators of a mental illness.

• What to ask, how to ask and when to ask.

• Ways in which you can best support an individual.

• Privacy legislation requirements.

Building resilience

• A physical and emotional auto responses to change.

• How to produce a safe haven in your mind’s eye similar to the cave for the caveman.

• How to reprogramme our ancient operating system.

• It’s not what happens to you that’s important, it’s how you react!

Coping with change

• What is a resilience?

• How to build resilience.

• How to create and maintain job satisfaction.

• The importance of mindfulness.

• A great first step to coping with change.

• How a yacht’s skipper copes with change.

• The importance of keeping things in perspective.

• Recognising those individuals ignoring change.

Managing change • Coping attitude towards change.

• The importance of keeping things in perspective.

• The importance of a clear vision.

• A great brainstorming exercise.

The implementation • What a psychologically healthy workplace looks like.

• 14 points to consider before implementing a mental health and wellbeing plan.

• How to implement and continually improve the plan.

• The importance of a sponsor and a champion.

Mental vs physical (workers’ edition) • Creating a mentally healthy workplace is a shared responsibility.

• We can all help promote good mental health by talking openly and positively about mental health in the workplace.

• The danger of assumptions when it comes to mental health.

Options • single user licences • enterprise licences for 500 learners or more • options for selected packages to be run on your site at your corporation • video streaming for Fire and medical courses • Over 1000 on-line specialised and health and safety courses to choose from

Choose from • Compliance Package • Hazwoper Package • Professional and personal development • Customer Service, Communication and people management • Project and Process Management • Supply chain and logistics ■

How you can help • The 20 possible indicators of a mental illness.

• What to ask, how to ask and when to ask.

• Ways in which you can best support an individual.

• Privacy legislation requirements.

The first 10 people to call us can s elect a course o f their choice a t no charge!

Skills Train Distribution www.skillstrain.co.za www.skillstrainlms.co.za – for all our courses https://www.linkedin.com/In/Lindaabotha

Linda Botha

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51

EDITORIAL TRANSFORMATION

Time to transform our inequitable society into one governed by Ubuntu The COVID-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming our society into a more equitable, resilient and prosperous democracy that promotes the wellbeing of all people and our planet.

By Dr Mamphela Ramphele

T

his call to action was made by academic,

“There is an imperative to initiate processes of deep

businesswoman and political thinker Dr Mamphela

conversation in safe spaces between leaders, managers and

Ramphele, cofounder of ReimagineSA. Dr Ramphele

workers about how to work together to create a new normal in

was the opening speaker at the 13th annual

the work space. Healing conversations have to go beyond the

Trialogue Business in Society Conference on 13 October,

wounds of the past to embrace the fragilities in work, family,

where she discussed how corporates could play a leading role

community and public life that COVID-19 has laid bare.”

in strengthening socio-political and economic conditions.

Dr Ramphele said the greatest leaders in extraordinary times in world history are not necessarily those who had demonstrated their capacity to lead in normal times.

“On the contrary, leaders who rise to the demands of

Corporate South Africa can also invest in embedding civic education in personal development programmes for staff at all levels.

“Critical, responsible and accountable citizenship is a key success factor of stable societies across the world. We

extraordinary crisis tend to be those willing to take the risk to

now know that where there is trust between people in the

be creative, inventive and courageous. Such leaders succeed

workplace, productivity, creativity and innovation thrive,” Dr

because they dare to break from the known to the unknown,

Ramphele added.

from the familiar to the unfamiliar, from traditional to nontraditional ways, to open up new pathways to more promising futures.”

Dr Ramphele focused on three key issues in her virtual

Leading the emergence from post-COVID emergency Humanity is consuming 1.7 times the resources we should

address: Leadership in challenging times, the process of

and the world is approaching a tipping point on climate

emerging from the COVID-19 crisis, and education as a

change. Protecting the future of human civilisation and the

platform for innovation and resilience.

wellbeing of our planet will require dramatic interventions.

Leadership in challenging times

a radical overhaul of corporate governance, finance, policy-

These include human and economic transformation, with Racism, sexism and inequity, “that have reared their ugly heads with a vengeance over the past few years”, are warning signs that unless we address these legacy issues, future generations will be hampered by the burden of these ghosts.

Corporate South Africa has the opportunity to lead the charge in this healing work as businesses return to face-toface encounters in the workplace, said Dr Ramphele.

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making and energy systems, towards greater transparency and accountability. We need to address three obstacles: • Business that is shareholder-driven instead of stakeholder-driven; • Finance used in inadequate and inappropriate ways; and • Governance based on outdated economic thinking and faulty assumptions.

EDITORIAL TRANSFORMATION

Critical, responsible and accountable citizenship is a key success factor of stable societies across the world. We now know that where there is trust between people in the workplace, productivity, creativity and innovation thrive.

Companies and enterprises need to listen to trade unions

from the local, provincial and national levels and to strengthen

and workers’ collectives, community groups, consumer

critical citizenship to ensure that we, the people, relentlessly

advocates and others in the rest of society. Corporate

demand accountability in a responsible manner within the ambit

governance must reflect stakeholders’ needs instead of

of the law," said Dr Ramphele.

shareholders’ whims.

Government assistance to business should be less about

“Destruction of public property in the name of public anger and rage must end. Citizen accountability must rest

subsidies, guarantees and bailouts, and more about building

on taking ownership of these public assets and needs to be

partnerships. Strict requirements should be attached to any

complemented by severe punishment for those who continue to

corporate or state-owned enterprise bailouts so that taxpayers’

be destructive.”

money is used productively and generates long-term public value.

“We need to re-imagine and rebuild governance systems

Dr Ramphele advocated robust plans for a transition to renewable energy, with timelines towards zero emissions.

“We have much to gain by kick-starting our economy

SA PROFILE www.saprofilemagazine.co.za

53

EDITORIAL TRANSFORMATION

through accelerating investments in enterprises that promote regenerative economic production systems.”

South African small and medium enterprises are largely in

“It would be much cheaper to let go of all default teachers, 50 years and older, with attractive packages. We would then be able to hire young people from our higher education and

survival mode. We require nimble and integrative approaches

training system, who are assessed to have the aptitude and

that collapse the bureaucracy of existing organisations into a

commitment to become 21st century teachers," Dr Ramphele

high-impact platform to identify and significantly invest financial

said.

and business skills support, she added.

We also need to move away from GDP as a measure of

“In-service training of scores of young people would enable us to re-imagine and build a 21st century education system. The

progress. “GDP is an inadequate measure given that it largely

good news is that there are models of success of this form of

accounts for, and values, only consumption. GDP does not take

leadership, for example the LEAP schools for maths and science.

into account the ecological costs in the production of goods

They have demonstrated that excellence is attainable.”

and services that have a major impact on the wellbeing of people and our planet,” said Dr Ramphele.

Public services should be reimagined to ensure high quality,

Dr Ramphele concluded: “COVID-19 has created an urgent imperative to transform our inequitable society into one governed by the values of Ubuntu – that would help

sustainable solutions. “The pernicious tender system that has

us understand that there is no ‘I’ without ‘we’. An Ubuntu

turned public servants into administrators of interminable

value-based society, with citizens that are liberated from the

tender processes needs to be ended.”

impositions of inferiority and superiority complexes, is urgently

Social and physical infrastructure development has to be driven by skilled personnel, with capable leaders at local,

needed.

“Such a society would be driven by healthy relationships

provincial and national levels to ensure that they can negotiate

with self, family, community and wider society. Leadership that

value for money for all public-private partnerships.

is self-liberated would emerge to lead the rebuilding of our

“We urgently need to transform and revitalise infrastructure to kick-start our moribund economy. Well-planned and well-

broken public institutions in line with ubuntu values and the prescriptions of our Constitution.” ■

executed infrastructure development programmes are the only guarantor of training opportunities for the millions of young unemployed people to become artisans and maintenance workers.”

Education Our education system is the best resourced in Africa, yet by all measures is among the worst performers globally. In the 2018-2019 fiscal year, 16.5% of government expenditure went to basic education; overall, 20% of our national resources are spent on basic and higher education annually, yet we have “a hopelessly underperforming system that has failed generations of young people since 1994".

Teachers, who had entered the profession by default because of the lack of alternative careers in the past, should be offered the opportunity to retire early.

Dr Mamphela Ramphele

Trialogue is a 51% black-owned company that has focused exclusively on corporate responsibility issues for over 20 years.

It is the Southern Africa Local Authority for a global network of responsible business and social development-focused organisations, called the Global Exchange, overseen by the US-based CECP: Chief Executives for Corporate Purpose. Trialogue has offices in Cape Town and Johannesburg and shares its knowledge through its annual conference and handbook, digital platform (www.trialogueknowledgehub.co.za), training programmes and webinars. It also offers corporate social investment and sustainability consulting and reporting services.

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The College of Business and Economics, in short, the CBE, is the largest faculty in the University of Johannesburg.

The cbe houses six schools, twelve departments, six centers, one institute, one research lab and three saRchi chairs. The cbe qualifications range from diplomas to postgraduate diplomas as well undergraduate degrees to postgraduate degrees. our continuous education programmes include short learning programmes, bridging programmes and whole programme.

We develop critical thinkers and problem solvers that address business, economic and societal challenges.

The cbe has evolved into a preferred commerce education provider who, within three years, has achieved global recognition for: • Tourism & Hospitality: First in Africa (2019) / (2020), Eighteenth globally (2019) • Marketing Management: First in Africa (2019) • Organisational Psychology: First in South Africa (2019) • Business & Management Studies: Third in Africa (2019) • Economics & Econometrics: Fourth in Africa (2019) • Accounting & Finance: Fourth in Africa (2019) • 2021 results Times Higher education QS rankings The cbe schools and their specialisations are: scHool of accounTing Department of Accountancy Department of Commercial Accounting scHool of consumeR inTelligence and infoRmaTion sYsTems The Department of Applied Information Systems The Department of Information and Knowledge Management The Department of Marketing Management scHool of economics The Department of Economics and Econometrics scHool of managemenT Department of Business Management Department of Financial and Investment Management Department of Industrial Psychology and People Management Department of Transport and Supply Chain Management scHool of Public managemenT, goVeRnance and Public PolicY Department of Public Management and Governance scHool of TouRism and HosPiTaliTY Tourism Management Hospitality Management Food and Beverage Operations

foR moRe infoRmaTion, Please conTacT us: Telephone: +27 11 559 4586 / 6028 / 1348 email: askcbe@uj.ac.za Website: www.uj.ac.za/cbe

college of business and economics

ADVERTORIAL THE TRANSFORMATION LEGACY

Why should

Enterprise Development Matter?

According to the Small Business Institute (2018), 7 out of 10 small businesses fail within the first five years of operation. This means that the majority of entrepreneurs that start businesses will lose their income and the capital investment made into their respective businesses and ultimately close down their operations. This alarming reality has unfortunately become part of the narrative for far too long in our country. The impact of this statistic is not only felt in the small, medium and micro enterprise (SMME) landscape; it is a reality that affects the whole economy.

T

he Transformation Legacy organisation exists to create a new narrative of thriving SMMEs that remain sustainable, are able to create jobs and thus lead to a positive contribution to the economy. To ensure that we achieve this, we implement

enterprise and supplier development that are holistic in their approach by not only imparting critical business and entrepreneurial skills. Our programme focuses on ensuring that business owners reach a certain

Development initiatives.

• The Transitioning Entrepreneur programme: reskilling of retrenched individuals aspiring to start their own businesses.

• Skills Development programme: SETA accredited NQF level 4 Business skills training to train and upskill unemployed individuals.

• Socio-economic development programme: training and mentorship of unemployed youth in township and rural regions.

level of personal mastery which would allow them to have the right

Our in-house Enterprise Development programmes

mindset to thrive as entrepreneurs.

The Transformation Legacy is an Enterprise Development company

The Transformation Legacy team rollout a number of successful ESD

providing impact-driven Enterprise & Supplier development (ESD)

programmes throughout the year. Any of the following programmes

initiatives that are geared towards empowering small businesses

can contribute to your Enterprise & Supplier Development spend, if

to significantly grow their enterprises. We do this through business

you choose to come on board as a sponsor.

mentorship and practical training programmes that are aimed at

• The Transitioning Entrepreneur Programme: Business mentorship

providing entrepreneurs with the necessary skills and support to build

and training programme specifically targeting retrenched

their businesses.

individuals, to ensure they are re-skilled and have the knowledge

For corporate companies, the contribution made towards the development and implementation of effective enterprise and supplier development programmes can lead to more sustainable SMMEs, securing excellent black-owned suppliers, maximizing of company BEE compliance and thus improving the corporate company’s competitiveness in the market.

and tools they require to start their own businesses.

• Transformation Fridays: Business skills training sessions taking place on Friday’s covering a variety of management challenges facing small business owners.

We believe that through our programmes, we can significantly improve the competitiveness and sustainability of corporate companies by building SMME’s that can grow to becoming

Our offering to corporates:

sustainable enterprises and thus leave a meaningful legacy in our

• Development and Implementation of Enterprise and Supplier

nation.

THE TRANSFORMATION LEGACY T +27 10 005 5753 E info@transformationlegacy.com W www.transformationlegacy.com 56

SA PROFILE www.saprofilemagazine.co.za

Are Areyou you aware aware of ofthe the exciting exciting opportunities opportunities for foryou you to to support support small smallbusinesses? businesses?

Partner Partnerwith with us us in in supporting supporting small small businesses businesses to to scale scale and and grow grow their their businesses. businesses.

The TheTransformation TransformationLegacy Legacyisisan anEnterprise EnterpriseDevelopment Development company companyproviding providingimpact-driven impact-drivenEnterprise Enterprise&&Supplier Supplier development development(ESD) (ESD)programmes programmesand andprojects projectsthat thatare are geared gearedtowards towardsempowering empoweringsmall smallbusinesses businessesto to significantly significantlygrow growtheir theirenterprises enterpriseswhilst whilstimproving improvingyour your BEE BEEcompliance complianceas asaacorporate corporatepartner. partner.

OUR OUROFFERING OFFERINGTO TOCORPORATES: CORPORATES:

OUR OUROFFERING OFFERINGTO TOENTREPRENEURS: ENTREPRENEURS:

• •Development Developmentand andImplementation Implementationof of Enterprise Enterprise&&Supplier SupplierDevelopment Developmentprojects. projects.

• •Business BusinessCoaching Coaching&&Mentoring.

Mentoring.

••The TheTransitioning TransitioningEntrepreneur EntrepreneurProgramme: Programme: Reskilling Reskillingof ofretrenched retrenchedindividuals individualsaspiring aspiring to tostart starttheir theirown ownbusinesses. businesses.

••Skills SkillsDevelopment Developmentprogrammes: programmes:SETA SETA accredited accreditedNQF NQFlevel level44Business BusinessSkills Skills training trainingto totrain trainand andupskill upskillindividuals. individuals. ‘’Maximize ‘’Maximizeyour yourBEE BEEcompliance complianceand andimprove improveyour your competitiveness competitivenessininthe themarket marketwhilst whilstimpacting impactingthe the sustainability sustainabilityof ofsmall smallbusinesses” businesses”

• •Business BusinessSkills SkillsTraining.

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• •Start-up Start-upbusiness businessdevelopment developmentsupport support programmes. programmes.

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30 30Years’ Years’collective collectiveexperience experienceininentrepreneur entrepreneur development development| |NQF NQFLevel Level44accredited accreditedBusiness BusinessSkills Skills Training Training| |BEE BEELevel Level1-100% 1-100%Black-women Black-womenowned. owned.

info@transformationlegacy.com Contact Contactus uson on+27 +2710 10005 0055753 5753or or+27 +2787 87153 1532143 2143 | |info@transformationlegacy.com Constantia ConstantiaSquare SquareOffice OfficePark, Park,16th 16thRoad, Road,Randjespark, Randjespark,Midrand, Midrand,1682 1682 www.transformationlegacy.com www.transformationlegacy.com

EDITORIAL SALES INCENTIVES

Using incentives to drive business growth - 4 tried and tested ways If sales are the engine of your business, sales incentives are the high-octane fuel needed to drive performance. This is an ever-popular, tried-and-true tool used to energise sales teams to sell more by qualifying for and winning great prizes.

By Claire Storm

I

ncentive is a noun that describes an object or

1. Transparency: Don’t hide the results in a secret vault for

experience that can be earned by meeting certain

all eternity. The announcement of the winners should never

criteria. The mechanic is quite simply being rewarded

be a huge shock or surprise. Using regular leaderboards,

for hitting specific targets, says Claire Storm, Co-founder

the results will drive the desired behaviour change and

and Director for Airshot, an innovative digital toolkit that

ensure that your sales force keeps working towards the

boosts communication and collaboration across business

win. Transparency also opens you up for healthy internal

value chains.

competition where your sales teams will begin to rally each

With years of experience in the incentives industry, Storm believes that without a data-driven, structured

other – I don’t need to win, as long as I beat Bob – giving you an unstoppable team that is fully engaged with the goal.

approach to incentives – and plenty of internal buy-in – companies will find themselves wheel spinning.

“A sales incentive programme without the right blueprint

2. Performance plus participation: When you are drawing up the mechanics of the competition, include measurements

could cost you a bundle of time and effort and leave

based on performance as well as participation. Performance

you with lack-lustre returns. Worse yet, you won’t get the

is the integer that defines success so be clear on your goals

revenue results you want from your employees,” she says.

up front whether its growth percentage, number of sales or

“When it comes to running incentives, many companies

profit improvement. The more focused your revenue goal,

have formed bad habits. I have seen too many businesses

the easier it is for your sales team to understand and achieve

put their entire incentive budget and plough all their

it.

creative juices into promoting the campaign rather than

Participation is just as important. Be sure the goal is

into the detail that will push their sales teams further. All too

clearly communicated and mention it over and over in a

often, it’s about creating a poster of a magnificent beach,

way that drives two-way engagement. Make it compulsory

adding some colourful cocktails, dropping a speed boat

to respond to surveys, submit photographs, and re-arrange

onto the water and use a catchy campaign name – without

an office or storefront. This is not about making unnecessary

focusing on what actually needs to be achieved.”

work; it will encourage buy-in and put your sales team into a

While the creative process has its place because every

positive headspace that says: “Game on!”

incentive does need a carrot, the work does not end

58

with a flashy design. Storm suggests considering these

3. Target growth across the board: Incentives must always

fundamental rules for your next incentive:

create growth. Although the criteria and mechanics may

SA PROFILE www.saprofilemagazine.co.za

EDITORIAL SALES INCENTIVES

well be constructed into more user-friendly objectives, the end result of everyone’s efforts must always equal growth. Your end game is to shift the behaviour and performance of every single player – not just the top five performers who are likely to win anyway.

4. The size of the prize: Great prizes rock but they can also be so polarising. Weirdly, even a big-ticket prize can be off-putting if it doesn’t hit the right note with your audience. There is huge merit in creating smaller, more frequent rewards. These can equal the playing field and ensure a higher level of active participation. Plus it gives you an opportunity to create incentives within an incentive in order to push the ‘bottom’ players along. ■

Claire Storm

Incentives that work focus on clearly defined goals that change behaviour to drive sales growth. Starting with the end in put will put your sales people in the driver seat and help you fuel record performance,” Storm concludes.

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EDITORIAL ENTREPRENEURSHIP

20 lessons in 20 years:

Lesson 1 – Am I really an entrepreneur?

Over the past 20 years, Raizcorp CEO Allon Raiz has learned many tough lessons and overcome many entrepreneurial challenges. He has also had the privilege of learning from the journeys of over 13 000 entrepreneurs who have passed through Raizcorp.

In this series of articles, Allon shares 20 of some of the most important lessons he has learned, using a sequence that mirrors the typical stages of any entrepreneurial journey – from ideation through to scaling a business.

By Allon Raiz

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EDITORIAL ENTREPRENEURSHIP

I

strongly urge anyone who has started a business recently

Most of Western society regarded entrepreneurs and

or is about to start a business to seriously ask themselves

entrepreneurship as somehow less than being a professional or

the question: Am I really an entrepreneur?

corporate manager.

Statistics show that 96% of businesses do not see their

It was only in the mid-1980s, with the advent of the first

tenth year (in fact, most do not even see their third year) but

published business books aimed at entrepreneurs, that

100% of people who start a business believe that they will be

entrepreneurship started to become acceptable as an

successful, and most think of themselves as entrepreneurial.

alternative career. By the early 2000s, some entrepreneurs were

I am referring here to 'opportunity entrepreneurs' and

regarded by the media as rock stars and the first celebrity status

deliberately excluding 'necessity entrepreneurs' since their

entrepreneurs began to appear.

circumstances are different. Necessity entrepreneurs are

The result of this has been that entrepreneurship has

forced to become entrepreneurs and, given the chance,

become a very popular life choice. In most instances, though,

would take up formal employment instead.

the entrepreneurial journey has been over-glorified by the

By definition, opportunity entrepreneurs see an

media which continues to publish the stories of entrepreneurs

opportunity and believe that they can make money – or

who have achieved extraordinary success. In reality, and in

at least a living – from that opportunity. They purse this

view of the 96% failure rate in entrepreneurship, these success

'opportunity', often borrowing money or using up personal

stories represent a 'false positive'.

resources to initiate the business and keep it running.

So before your start your 'glorious' entrepreneurial journey

Statistically, most of these people will lose their money and

of self-realisation and self-discovery, make sure you ask yourself

their borrowings. So it’s not really simplistic or stupid to ask

the question: Am I really an entrepreneur? ■

oneself the question: Am I really an entrepreneur?

The question at its core does not refer to the skills of an entrepreneur but rather to the characteristics of an entrepreneur. To use an analogy, if you were a medical doctor, you would learn many of your skills at university or in practice. However, if you can’t stand the sight of blood, don’t like being around people, are completely unsympathetic and don’t enjoy problem solving then, no matter what skills you have learned, you’re probably not going to stay a doctor for long and most likely won’t be a very good one.

Similarly, the entrepreneurial journey is arduous and requires a set of characteristics that will give one the highest probability of becoming part of the 4% of entrepreneurs who succeed. These include incredibly high levels of tenacity, a high tolerance for rejection, a strong work ethic, an ability to listen, being flexible in the moment, being highly resourceful, being highly self-motivated, have the ability to reach out for advice … and the list goes on and on.

During the 1960s, entrepreneurs were regarded by society as less academic people who could not study to become professionals or find jobs in the corporate world, and who therefore had to resort to starting their own businesses.

Allon Raiz is the CEO of Raizcorp. In 2008, Raiz was selected as a Young Global Leader by the World Economic Forum, and in 2011 he was appointed for the first time as a member of the Global Agenda Council on Fostering Entrepreneurship. Following a series of entrepreneurship master classes delivered at Oxford University in 2014, 2015 and 2016, Raiz has been recognised as the Entrepreneur-in-Residence at the University of Oxford’s Saïd Business School. Follow Allon @allonraiz on Twitter, Instagram and LinkedIn.

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EDITORIAL ENTREPRENEURSHIP

From side hustle to main hustle

7 tips for making the jump

By Jacqueline Raw, owner and founder of marketing consultancy, Ycagel

The dream of being your own boss is a driving factor for many when it comes to striking out on their own, but the idea of starting a business from scratch without a safety net (financial or skill-wise) can prove overwhelming.

Here are seven helpful tips to ensure entrepreneurs' side-hustle become a full-time success:

1

Treat it like a business, even when it's still a side-hustle. Approach claims that your ‘free’ work could lead to bigger and better opportunities with caution. Giving away your time, energy and content

The majority of entrepreneurs are driven by a particular

for free could interfere with your ability to earn a

passion or dream of owning their own business. In fact

living. It could also devalue your brand and it may

studies show that 30% start their side-hustle in a completely

cause you to get early burn out.

different industry from the one they work in full time. So, what do you need to do to turn your side hustle into your full-time business?

2

Put weekend plans and vacations on the backburner (for now). If you are working full time and running a side-hustle then, you will need to use your weekends to grow your business.

3

Don't be in a rush to start your business.

Make sure you have enough time, money and skills. There are many short courses, coaches and mentors online sharing their insights and experiences with new entrepreneurs for free.

Leverage these, lay a solid foundation for yourself and then when you've done the hard work, you can launch your new business!

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EDITORIAL ENTREPRENEURSHIP

4

5

Make a plan for financial stability. Managing your

Anyone with passion, discipline and perseverance can

expenses from the get-go so that the fluctuation in

work for themselves. It's nowhere near as glamourous or

income won't eat into the profits of your business when

straightforward as it looks, BUT the rewards are worth it

you take the leap. This is a key discipline in business

for those who want to live life on their own terms. Dream

ownership! Also, don’t forget to make provision for the

big, work smart (and yes, HARD) and don't quit! ■

slow months.

You don't need to do it alone. Lean on your family and friends for support. Your inner circle are the tribe you'll lean into when things are tough, and the first people you'll want to call to celebrate with when you reach your goals. Who you choose to surround yourself with and share your dreams and goals with will make or break your entrepreneurship journey. Choose wisely.

6

Manage your risk. Small business insurance is key when it comes to minimising your financial exposure if things go pear-shaped.

7

Mindset does matter. Being an entrepreneur is like waking up every morning and stepping into the ring with Mike Tyson. You have to prepare yourself for the knocks – that they will come is the only certainty in business! It doesn't matter how many no's you get or how many times you fail – you've got to have the grit to get up again.

Jacqueline Raw is a sales and marketing strategist. She is the founder of Ycagel, a marketing consulting and services firm and SkillX an online skills incubator for entrepreneurs and professionals. As a thought-leader and influencer in her markets, she is passionate about driving change and equipping people with the skills they need to grow successful businesses and brands.

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PROFILE WOMEN IN BUSINESS

Balancing the fine line between the leading edge and the bleeding edge Leeanne Cape started her first business when she was just 19 years old. Being a business owner so young with no real education except a Matric meant that the daily act of showing up was, in essence, the practice that would go on to teach her invaluable lessons no tertiary education could.

“I

never really thought about going to university as I knew my family had no means to make it happen and I didn’t think of applying for a loan or a bursary. I had been working weekends and holidays since I was 13 and I just assumed that’s what you do: You leave school, and you go work.

“But I loved working and earning my own money, which is probably why any other route wasn’t really part of my thinking,” says Leeanne.

Curiosity, enthusiasm, and balancing the fine line between the leading edge and the bleeding edge took Leeanne on a journey of being a pioneer in many industries.

Equals, undoubtedly “Being a woman in a country that was – and still is – largely male dominated in most industries, rarely crosses my mind,” says Leeanne.

Growing up with two brothers, Leeanne was treated as an equal and was expected to achieve the same success. Later, her business partners would extend the same equality and respect.

“Sometimes, I have to really catch myself to be aware of gender discrimination as I just don’t expect it. I think a lot has to do with my approach and I do believe the world feeds back to you what you believe to be true.

“I am not saying gender inequality doesn’t exist – I see it often in many businesses I’ve worked with, but I cannot admit to having experienced it in business myself and I firmly believe it’s because I never gave that belief space to be true in my world.

“What you believe will be reflected to you by the world.”

idea how I was going to do that, but I bought the pencil crayons, printed the paper banners and got about finding somewhere to pack them," she explains.

“I sold all 100 000 units within the first week and never had to put down a cent of my own money – keeping in mind I had none.”

This taught Leeanne to trust her instinct – and more times than not, when things go wrong it’s because she hasn’t and knows that she only has herself to blame.

“Today, when our design team brings me an idea or creative execution and it's really good but my gut says, ‘something isn’t quite right here, the client is going to push back here’, I have to trust it.

“I am a firm believer in creating an environment and the space to allow for inspiration to flow and to be heard. Inspiration can come from many different places, from many different people and in any moment.

“My advice is to learn to cultivate your inspiration – and yes you will know the difference between a thought and inspiration.” ■

Leeanne Cape is the Group CEO of Quazar Group and plays an integral role in each of its subsidiaries. As Director of Quazar, a brand strategy consultancy, and Pandoran Limited, a software solutions company, Leeanne’s years of business strategy experience have allowed her to build robust companies while creating products and solutions for others.

Inspiration as a source of business acumen “I also believe all genius comes from inspiration, and that women are more attuned to this. Whether it’s a spark which leads to a highly considered mathematical equation or an idea expressed as art, I feel that at times, women are more open to trusting and allowing inspiration to flow to them and not limit it entirely by intellectual analysis,” she says.

Leeanne’s first recollection of such inspiration was when she was a 20-year-old sitting in a cinema. After watching the trailer to the original ‘Lion King’ movie, she left the movie house knowing, unequivocally, that it would be a massive success, especially with children.

“I had just seen the perfect children’s product to take advantage of. It was a plastic playmat – I had seen a version from Australia and priced it up but import taxes on plastic made it too expensive. So, I found a local company that could do the printing and approached Disney in South Africa for the rights to use the characters.

“It was a different world then. I managed, without a prototype, to get the usage rights, convince a printer to print 100 000 units with no money down and no distribution mechanism and had 30 days to pay. I had no

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EDITORIAL WORKING CAPITAL

When is the best time

to borrow money for your small business?

Small businesses face many challenges: Access to working capital is one of them.

There is the perception out there that borrowing money is a last resort, but lending can actually be a strategic move that can build your business in the long run. In fact, the last thing you should be doing is waiting too long to lend.

By Dov Girnun, CEO of alternative fintech lender Merchant Capital

W

hen you turn to funding because your business

in the game while you are able to manage that debt and pay it

is in crisis, funding is used to plug holes.

off quickly.

According to Dov Girnun, CEO of alternative fintech lender Merchant Capital, “the best time

What are some good reasons to get a loan?

to borrow is when you can use that working capital to enhance

• Setting up shop: If you’re starting a new business you

your chances of future success and make sure you can pay it

will need to create an infrastructure before the business

back with ease”.

is generating any revenue. This is already a good time to

Here are some of the key ways to think about borrowing money for your small business as you head into 2021.

access start-up funding to get a head start on your young business and not purge it before it’s had a chance to get off the ground.

Plan your financial future If there is anything that COVID-19 has taught us, it’s that we can never plan for everything. But as a business owner, there are many things you can foresee. For example; that equipment upgrade which is looming, the staff training that is required or

• New location: If your existing business is doing well, you may consider expanding to a new location. A loan is a good idea here so that the existing branch doesn’t have to carry all the risk.

• Upgrades and inventory: If your business requires

that renovation you’ve been hoping for. While you may have

new systems or equipment, a loan could be the answer.

some funds available, it may be better to achieve these goals

Similarly, if you have a supplier that will give you better

with borrowed capital.

rates on a bulk order, a loan to purchase this could secure

“Once you understand what needs to be done in your business, then you can take the necessary steps to understand

you an upfront discount which will pay you back as you sell this stock for a higher profit.

what kind of loan is best for your business,” says Girnun. “Taking a long-term view of the situation will allow you to think clearly and investigate all options.”

What are bad reasons to get a loan?

• Shiny things: Just because something seems like a sure thing, doesn’t mean that it is. So do your homework before

Build up a track record Gaining access to loans is complex. Lenders are cautious and they often require a credit history to decide on whether or not they can lend to your business. Because your current financial situation determines long-term lendability, it is important to get

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investing someone else’s money into risky projects. And make sure that whatever you take on, yields long-term growth.

• Avoid stacking: If you are already battling with one line of credit, taking out another loan to service that gap is going

EDITORIAL WORKING CAPITAL

to cause many knock-on problems. Girnun cautions here saying: “A responsible lender will help you understand if more debt will help or hinder your business.”

• Understand your credit pressure: If you are swimming in debt and all the subsequent loans haven’t helped you, it may be time to ask yourself some hard questions about why things aren’t working. Then take the necessary steps to make smarter decisions for your business.

The bottom line Smart debt can really relieve pressure on your business.

Understanding your business’ needs, assessing this long term, and building a healthy credit history can be a strategic move in building partnerships with responsible lenders. Once in place you will have quick access to working capital when your business needs it the most. ■

Dov Girnun, CEO of alternative fintech lender Merchant Capital

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EDITORIAL STOCKS WORTH WATCHING

What we might expect

from another unusual year 2021 is well underway, and Daniel Kibel, co-founder of CM Trading, discusses five industries that may perform in the year ahead.

By Daniel Kibel, co-founder of CM Trading

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EDITORIAL STOCKS WORTH WATCHING

D

uring the COVID crisis, we’ve seen a major increase

Apple

in online trading. And while 2021 is well underway,

The iPhone remains the biggest money-spinner for the tech

it’s likely we’ll still see a few lingering effects of

giant. And stocks flew due to the launch of the new 5G iPhones

2020 in the markets. One of the main take-outs

late last year. The associated services business provided

from 2020 was major volatility on oil. That was a huge trading

by Apple to a billion iPhone users is also attracting major

opportunity in terms of ‘going long’, selling and buying.

investment. And while their streaming service may have been

Gold did well last year and has historically been a safe place

met with a lukewarm reception by viewers, Apple’s mobile

for traders. It’s where they go when they’re concerned about

division still accounts for around 44% of their total revenue.

what’s going on in the world. That said, there is a rising trend

And much like Google, the company remains ahead of the pack

of traders moving to Bitcoin instead of gold. For the most part,

when it comes to investing in new technology.

though, the whole stock market was dragged up by just a few stocks last year. And some of them may still be worth watching

Oil

in 2021.

Every trader needs a wild card. And this is it. As vaccines roll out globally and a semblance of ‘normal’ begins to return, we may

Amazon

well see oil prices rise. With air travel and business beginning

Lockdown has been an obvious winner for Amazon. With

to revert to what it was before; oil will be back in demand. It is

people all over the world forced to stay at home and unable

all very tied to the dollar’s performance, though – as are most

to shop in person, a boom in online shopping was a natural

major commodities. Nonetheless, if I was a gambling man

conclusion. And Amazon performs in terms of service, price

(which I am not), I would say that oil is one to look out for in

and quality delivery, which really helped their case. Shopping

2021. By the same token, as things do normalise, we may see

has changed forever due to COVID. And because of the

the gold price falling.

convenience factor, online shopping is probably going to

In closing, I am often asked for words of wisdom for aspiring

continue to do exceptionally well, even beyond the pandemic.

traders. And the best I could suggest is for them to just take

Plus, we aren’t quite out of the woods yet, as vaccines roll out in

the leap into the water. It doesn’t have to be too deep. Start

phases globally. So, it still makes absolute sense to shop from

with small amounts, even if it’s positions of 0.01 lots (the

home.

smallest possible amount). Practice until you are ready to wade in deeper and trade bigger amounts. But don’t overextend

Tesla

yourself by putting in money you can’t afford to lose at first.

Tesla stocks absolutely flew through the roof by around 400%

Trading is a skill. And practice is the only way to learn to do it

in 2020. With several countries set to phase out fossil fuels,

successfully. ■

Elon Musk’s vision of having electric cars take over the roads is set to become a reality. And January saw a further surge in value. In 2020, Tesla achieved its target of producing 500,000 vehicles. And production shows no signs of slowing down, with worldwide expansion in the works. Electric vehicles will soon be the way of the future – by law. That bodes very well for the world’s top electric vehicle manufacturer.

Google As online activity increased, so did the value of Google Stock.

More people online meant more advertising activity. So, Google’s ad revenue surged. And as Google’s main source of income, this had a very positive effect on their shares. Google hasn’t only performed well during lockdown; it is one of the most successful stocks of the 21st century. The company is also constantly investing in value-added apps and systems, like cloud storage and mobile technology. For now, Google still looks to be a stock that’s on the move.

Daniel Kibel, co-founder of CM Trading

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EDITORIAL WORKPLACE DIVERSITY

Mainstreaming disabled people into the economy is a human rights issue In South Africa, workplace diversity discussions revolve mostly around race and gender, often sidelining the issue of disability inclusion. The private sector needs to take charge of this urgently regardless of what government legislation stipulates, experts say. Not only will this help millions of disabled South Africans to exercise their human and economic rights; it also has benefits for employers and the economy at large.

W

hilst the country has made some strides on the diversity and inclusion front, a lot of progress still needs to be made.

People with disabilities continue to be

disproportionately affected by a lack of job opportunities and unemployment. The National Council of and for Persons with Disabilities (NCPD) estimates that over two-thirds (68%) of disabled adults in this country were not working last year. The unemployment rate amongst the disabled will likely be higher this year because of the economic impact of the national lockdown, resulting in 2.2 million lost jobs in the second quarter alone.

“People with disabilities are at the bottom of the food chain and have always struggled to find employment, even before the COVID-19 pandemic. They will, unfortunately, struggle even more now,” says Jonathan Shapiro, CEO of LESCO Manufacturing. Founded in 1999, this producer of electrical products only employs traditionally unemployable workers such as disabled and unskilled people.

“Just because someone is in a wheelchair for example, or has a mental delay or disability doesn’t mean he or she can’t add value to a business or the economy,” Shapiro stresses. “It is time the private sector comes to terms with this and fast-tracks the inclusion of people with disabilities, regardless of whether there is legislation or not. We can do the right thing without having laws in place.”

Focus on what they CAN do The first critical ingredient of mainstreaming disabled workers in the formal economy is to focus on what they can

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EDITORIAL WORKPLACE DIVERSITY

do – rather than on what they can’t.

“Businesses need to shift their mindset,” Shapiro says,

This estimate excludes the economic benefits of job creation, especially amongst those who have always been

taking his own company as an example. “All of our 100

unemployed, and reliant on state support. Nkosi says; “Every

factory employees are functionally disabled or unskilled,

single person who no longer relies on government grants

and all of them are exceptionally valuable to the company.

because they have gained meaningful employment is a win for

This is because we know their strengths and capabilities, and

the private sector, the economy and country at large.” ■

where and how to apply those. That, and our wish to tap into a valuable and often ignored talent pool, is why we chose to work only with traditionally unemployable people. It forms

LESCO Manufacturing (Light Electrical Switch Company)

part of how we see the role of diversity in creating innovation

is a South African producer of electrical products

whilst doing good.”

that employs the traditionally unemployable, namely

Lebogang Mashego, one of LESCO’s long-standing staff members, contracted polio when she was eight years old.

“Most companies don’t give us disabled individuals, many

your unskilled, semi-skilled and disabled people, with a primary focus on women and youth. They do this by incorporating smart design processes into the

opportunities. If I hadn’t been working here, I would have

manufacturing and assembly of electrical products such

been sitting at home earning nothing and doing nothing,”

as adapters, multiplugs, switches and sockets.

she says. “Here, they treat us like we have no disability, and this gives us the confidence we need in life. Our dignity is restored.”

A second key pillar of successfully boosting disability inclusion in the workspace is to give disabled workers the same rights and opportunities as other colleagues.

“Like with any worker, give them opportunities to grow, develop and expand their skillset so that they can grow and take on more responsibilities,” says LESCO chairman, Sipho Nkosi. “It is their right - and looking at South Africa’s inequality problem, a business’ duty.”

Nkosi adds that deepening employees’ hard and soft skills is critical to building their confidence, both inside and outside of the workplace. LESCO does this by providing staff with speech, physio, and occupational therapy weekly through the LESCO Care programme, over and above skills training initiatives. This benefits the company too.

Sipho Nkosi, Chairmen of LESCO

“More confident staff are happier and more productive workers. All of this enhances operations, too.” This also benefits the economy at large. “Successful local companies are, after all, important drivers of the local economy,” Nkosi says. “This is particularly relevant as we are recovering from lockdown.”

Shapiro concurs. “As President Cyril Ramaphosa said during last month’s Economic Reconstruction and Recovery speech: the only way to rebuild and grow South Africa’s economy is to lower our reliance on imports and increase the quantity, quality, and value of our exports.”

“According to the president, producing 10% of what we import ourselves could add 2% to our annual economy,” he continues. “Based on last year’s GDP value of $385 billion and current exchange rates, this comes down to R125.24 billion.

This amount is no pocket change.”

Jonathan Shapiro, CEO of LESCO

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EDITORIAL CUSTOMER EXPERIENCE

Why breaking down

silos is essential for great CX

By Nathalie Schooling, CEO nlighten

By definition, siloing involves a failure to freely share information and ideas throughout an organisation.

This seriously hinders innovation

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EDITORIAL CUSTOMER EXPERIENCE

In all but the smallest organisations, there’s a tendency for silos to develop. This isn’t entirely a bad thing. After all, most companies rely on specialist teams to carry out key functions. Necessarily, this entails higher levels of communication within teams than between them.

W

hile this kind of compartmentalisation is fine,

customer throughout the organisation. This means ensuring

all too often, it leads to a situation where

that every employee, no matter what their department

teams, or different levels in a business’s

or role, is focussed on the end game of creating great

hierarchy, stop communicating effectively with

experiences for customers or clients. It also involves making

other parts of the business.

That’s when you have a serious problem.

sure different teams are sharing information and data and collaborating wherever possible.

Journey maps are another useful tool which can help

Why silos negatively impact how customers perceive your brand By definition, siloing involves a failure to freely share information and ideas throughout an organisation.

This seriously hinders innovation. It also prevents management from gaining insights into the challenges facing a business and therefore, managing these effectively.

Silos are deeply incompatible with a successful CX strategy.

break down silos. As well as providing invaluable insights into the way customers or clients interact with a business, they enable these insights to be shared across teams and hierarchies. This helps ensure all areas of the business, no matter how specialised, are focussed on the bigger picture.

US customer service specialists CSP recommend having staff spend half a day in different teams as a way of breaking down silos. Apart from helping people get to know each

The reason for this is that ensuring great experiences for

other, this enables insights into what other departments

customers at every touch point requires a shared, customer

really do and how their work impacts different parts of the

centric culture across an organisation.

business. Gaining a better understanding of how other areas

Looking at it from the customer or client’s perspective (as we always should), dealing with a business with entrenched silos is

of the business function helps staff view their own roles more holistically, encouraging a ‘one company’ culture.

a total nightmare. We’ve all been there – having to explain the

Finally, a set of well thought out corporate values that

same issue again and again to different departments that give

articulate the organisations USP, can be a terrific way to instil

the distinct impression of being worlds unto themselves.

a sense of common purpose. It goes without saying that ‘put

There are few things that annoy customers more.

How to break down silos once they have developed

the customer first in everything you do’ should be at the top of the list. ■

Breaking down silos isn’t about restructuring. The key is communication.

Without a plan for ensuring information is shared between different parts of a business, a restructure will simply replace one set of silos with another.

The focus needs to be on developing a culture where every team and every level of the business, from the CEO down, works together to realise a common vision.

I believe a good way to inspire the kind of cultural change required for CX success, is to create a senior position responsible for customer experience initiatives and improvements.

A key responsibility of the role I am envisaging – ‘Customer Experience Officer’ if you will – is to champion the voice of the

Nathalie Schooling, CEO nlighten

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EDITORIAL NEW TECHNOLOGY

How can

automation and AI bolster the fight against money laundering?

Several extensive investigations around the globe into the activities of banks have revealed massive failings in the fight against money laundering. Research showed that more and more criminals are exploiting the financial system and laundering their 'black' money by means of quick and immediate remittances. Banks face the challenge of keeping their ever-increasing compliance costs under control. To keep the balance between security on the one hand and cost efficiency on the other, financial service providers need to improve their compliance systems — but how?

By Erik Stretz, Principal Consultant, FICO

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EDITORIAL NEW TECHNOLOGY

coexistence is emerging – a mixture of the existing scenarios and the AI mechanisms.

Thank you very much, Mr Roboto Robotic Process Automation (RPA) enables banks to massively streamline and automate investigations and alert processing within their KYC (Know Your Customer) and AML (Anti-Money Laundering) solutions. Until now, entire crowds of investigators have often been hired only to do the initial processing of alerts, which typically consists of at least 90 to 95% of false positives.

This is especially true in Watchlist Screening, where a lack of data quality and the nature of the matching process itself create massive amounts of alerts, which to the human eye are obviously false. In doing so, clearly defined alert and case rules – which are specifically adapted to the situation of the financial institution, products, customers, etc. – can cover many of the repetitive activities, thereby minimizing duplication of efforts, while still retaining full audit trails.

Robotic Process Automation (RPA) should therefore be integrated into company-wide alert and case management.

This also ensures that investigators time is freed up from mundane tasks, so they can focus on more complex work.

RPA and analytics-based alert prioritization even helps to reduce costs in the short term. Above all, however, the combination of both ensures enormous efficiency and efficiency improvements. Experience from the everyday life of FICO's customers has shown that the number of suspected cases increases by up to 20% through appropriate implementations, while at the same time increasing efficiency

F

by up to 30 percent in alert and case management. ortunately, supervisory authorities are adapting to advances in analytics, which will help financial institutions. There is a growing willingness to trust new technologies such as artificial intelligence (AI),

Deus ex Machina However, automation and analytics are not the only means to effectively combat money laundering. As early as 2017,

machine learning or robotics. Authorities actively encourage

a study by McKinsey showed that machine learning could

banks to consider, evaluate and, if necessary, implement

reduce the number of false positives by 20-30%. At the same

these innovative solutions.

time, machine learning in the AML area can improve the

This does not mean that the existing risk-based approach, which is based on good compliance knowledge

conversion rate 'from alarm to suspicion' by a factor of three thanks to tighter segmentation.

in defining 'detection scenarios', is no longer valid. In

Examples of finer segmentation include isolating the fact

fact, many regulators insist that AML controls need to

that a customer has financial relationships outside the country,

remain explainable and auditable; they see its application

is a wealthy private individual or is a small business owner.

in supplementing existing controls. Hence, a kind of

While a risk-based segmentation into such customer groups

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75

EDITORIAL NEW TECHNOLOGY

Machine learning is explainable

V1

Reason Reporting and Ranking Algorithm

V2 V3

Feature

V4 V5 V6

Avg. Score

Feature Bin

850

4.0 - 5.5

650

2.5 - 4.0

400

<2.5

V1

can be done via configuration of expert systems, given the complexity of all our individual lives, it is also a mammoth

R-Code

65

Reason 2: International Deposits > 96th % of customers Reason 3: Velocity to risky countries > 94th % of customers

Stronger together Another way for financial institutions to reduce costs and

task when done manually, and very hard to maintain over

improve business outcomes is to connect AML and fraud

time. In this way, machine learning calls into question the

detection solutions, as FICO has done for our clients.

status quo of KYC processes, as it can take over such an

These are relatively similar and meet many common

ongoing segmentation by using real-time behavioral analysis

requirements, such as detecting unusual behavior.

based on financial transaction activities. It furthermore

Unfortunately, most banks still operate them in a silo

can add value by sifting through banks mountains of data,

environment.

exploring, and finding unknown connections. Again, this is

The use of a fully scalable IT environment that simultaneously

a boon for KYC operations by providing more information,

meets both fraud detection and AML requirements would not

while reducing effort.

only provide a cost advantage – it would also allow financial

One of the most basic requirements in AML is to ensure

institutions to act 'cross-border' in detecting illegal activities. ■

that we are keeping audit trails of our own actions, as well as the underlying machine behavior. This is very easily done with rules-based systems; since we can point to the underlying typologies we have used when defining them and explain the thresholds we have chosen.

Hence, machine learning models need to be similarly explainable in the event of an investigation, or an external audit. For example, the following example shows how the different variables of the model (V1-V6 on the far left) are incorporated into the machine learning algorithms, the results of which are processed by a Reason Reporting and Ranking algorithm. The reasons are sorted by importance and relevance to explain how the model came to the evaluation. Despite the model not using fixed thresholds like a rule would, an analyst can therefore easily see why an alert has been created.

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Reason 1: Unusually high $ amount > 88th % of customers

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Erik Stretz

ADVERTORIAL K&A MARKETING

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77

EDITORIAL DIGITAL ECONOMY

SA Competition Commission plans

to zoom in on digital markets The Competition Commissioner during the Commission's Annual Conference (in November 2020), noted that the Commission will take a "decisive and proactive stance to ensure the balance of economic forces favour a shift to facilitating entry and a more competitive digital economy".

By Burton Phillips, Partner at Webber Wentzel

P

roposed changes for the industry may be far-reaching

enforcement of merger control laws in digital markets to date.

and may include a possible requirement for dominant

One of the ways in which the Commission plans to promote

tech companies to inform the Commission of all

competition, inclusive growth, increased and meaningful

acquisitions, even those falling below the prescribed

employment and shared prosperity in the sector is through

thresholds for mandatory merger notification to the authority.

All players in the tech/digital markets space will need to be

Statistics published by the SA Commission indicate that

aware of the heightened focus of the competition authorities

out of the 87 notifiable mergers relating to digital markets

on this sector. Not only will this bring a change in transaction

from 2011 to 2019, none were prohibited; 82 were approved

costs and deal time-lines – but also many more mergers being

unconditionally and five conditionally approved. The proposed

prohibited or approved with conditions.

merger between MIH and WeBuyCars was the first in this space

The Commission's recently published paper on Competition in the Digital Economy notes that there may have been under

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more stringent merger regulation of the industry.

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to be prohibited, following a decision by the Competition Tribunal in March 2020. This decision appears to have

EDITORIAL DIGITAL ECONOMY

encouraged the Commission to scrutinize mergers in the digital

turnover in, into or from South Africa). At this stage, the

space more closely.

proposal is for such notification to merely serve to inform of the Commission of the transaction to enable it to decide

Some of the common reasons for the perceived under enforcement in the sector are:

whether to call for a full merger notification by the parties.

• Many transactions in the digital space may fall below the

the Commission and may be prohibited or have conditions

If it does, such transaction would be subject to review by

financial thresholds for mandatory notification. This results in

imposed. It is unclear how the Commission will identify

numerous small start-up digital companies being acquired

these dominant firms as this largely depends on how the

without any scrutiny by the competition authorities.

relevant markets are defined. The list may include well-

• In South Africa, acquisitions meeting certain prescribed

known players such as Facebook, Alphabet's Google, Netflix,

financial thresholds must be approved by the competition

Naspers, Amazon, Uber, Airbnb as well as network and

authorities and cannot be implemented prior to such

telecommunications infrastructure firms such as Vodacom,

approval being granted. Transactions falling below these

MTN and Telkom making any acquisition of a local target tech

thresholds (referred to as small mergers) can be notified to the Commission voluntarily - but can be implemented

company.

• Adding digital markets to the Commission's list of priority

without prior approval. The Commission may, however,

sectors, which means that the Commission will allocate

call for a notification of a small merger on suspicion that

greater resources and subject digital mergers to greater

a small merger could result in the substantial lessening or

scrutiny. The additional scrutiny on these mergers could result

preventing of competition.

in lengthy merger reviews which will have to be factored into

• In the UK, the March 2019 report on Unlocking Digital

deal timetables. In the case of global digital mergers, the

Competition noted that over the last 10 years the five

Commission seeks to ensure that global digital mergers that

largest tech firms made more than 400 acquisitions globally

are notifiable in South Africa are notified to the Commission in

– but none of these were prohibited and some not even

parallel with notifications submitted to competition authorities

scrutinised by their competition authorities.

in other jurisdictions. This will allow the Commission to

• Parties to tech transactions are often based offshore with

engage and collaborate with global competition authorities

no presence and little or no revenue in a particular country

and consider any conditions imposed by such authorities and

at the time of the acquisition to establish jurisdiction. The

its application in South Africa.

Facebook/WhatsApp merger is cited as an example of such a transaction. The merger was not notifiable to South African

Publishing a practice note on the assessment of mergers in

competition authorities as WhatsApp did not generate any

digital markets to deal with the competition and public interest

turnover in, into or from South Africa.

assessments, and a guidance note on how the assets of digital

• The traditional tools and theories of harm used in merger

companies should be evaluated for purposes of determining

review are not appropriate for tech related mergers. The

whether transactions fall within the financial thresholds for

consideration of factors such as defining the relevant

mandatory notification. ■

markets, market shares, foreclosure, barriers to entry and public interest factors need to be suitably adjusted and developed to take into account the fast moving dynamics of digital markets, including innovation, the use of multiple platforms, consumer reach, data usage, the use of free services or platforms and digital advertising.

Commission developing a strategy to address these issues Key merger control related measures suggested by the authority at this stage include: • Introducing a requirement for dominant digital firms to inform the Commission of all small domestic acquisitions, including investments in start-ups and global acquisitions of target companies with a local presence (i.e. generating

Burton Phillips, Partner at Webber Wentzel

SA PROFILE www.saprofilemagazine.co.za

79

EDITORIAL WORKFORCE

Building a flexible, future-proof workforce There’s no doubt that COVID-19 has changed how we work, and while there have been many negatives to this pandemic, it presents a unique opportunity to shape the world of work in a way that improves the environment for a greater section of the workforce, a leadership expert says.

“I

n many countries, we’re set to see a large uptick in

the rise of an agile, flexible, contract-based and performance-

the use of contract or non-permanent staff in recent

focused workforce offers the prospect of managing critical

months,” says Georgina Barrick, Managing Director

projects without the risk or cost associated with permanently

at Network Contracting Solutions, ADvTECH

appointing top talent,” she says.

Resourcing’s Contracting Division.

She says this change has brought benefits for both employers and employees.

“For contractors or temporary workers, there is the

Labour Organisation has been reporting on the rise of the ‘flexible workforce’ – or a workforce that “grows in number to meet business needs at any given time and falls back

opportunity to chase technology, to hone skills or upskill

to a baseline number when the increased size is no longer

between projects, and the freedom to schedule breaks between

necessary”.

projects to enhance their work-life balance. For employers,

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Barrick notes that for the past two decades, the International

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“Companies that embrace the use of flexible workers keep

EDITORIAL WORKFORCE

their number of full-time, permanent employees at a more sustainable level, while hiring more temporary, freelance or contract employees to meet demand during busier periods or for specific projects.

• IP leakage: If your contract doesn’t make provision for IP ownership, you may have no claim over valuable IP when the contract ends.

• Data and insight on costs, hourly rate benchmarking and

“The concept isn’t new. We only need to look at retail or

the effective onboarding/ offboarding of contractors.

agriculture, where seasonal workers have always been brought

• Payroll implications: What, if anything, do you need to

in to meet demand in busy periods. However, what is new is

consider around payroll?

the dramatic increase over the past decade in the use of highly skilled contractors to deliver on specific projects or work. For

Companies who already have contractors as a part of their

employers, the benefits are numerous and include reduced

workforce should consider:

payroll costs, greater talent diversity, access to expert skills that

• If you currently have any flexible workers in your business,

might not otherwise be affordable or indeed available locally,

were they onboarded into the business in a way that

and greater employee engagement.

reduces your risk? Are they timeously offboarded at

“And for employees turned contractors, working flexibly is part of the trend towards a gig economy – or the move towards temporary, flexible jobs and away from permanent employment. In an ideal world, this move is powered by independent workers, who select work contracts based on interest and how the work offered can grow their skills and expertise.”

Barrick says that as the economy starts the slow journey to recovery, many leaders have had to reduce their permanent

contract end?

• Who do these contractors report to? Who has sight of them and their output?

• What are they doing for your business? Do they touch customers or work on any mission-critical systems?

• Are they paid correctly and on time and within the project budget? Is your business exposed to any legislative, tax or statutory risks as a result of these flexible workers? Do you think that you have any business risk exposure as a result?

staff complement as a result of the effects of COVID-19 lockdowns.

“However, this has not removed the need to deliver on

“A properly managed flexible workforce can significantly and positively influence business success and, with the right amount

outstanding projects. Expanding the flexible workforce to

of visibility over your contractors, you can experience a better

support business and project needs is the obvious answer.”

outcome,” says Barrick.

Effectively managing a large non-permanent workforce is not without its challenges, she says.

“While your flexible contract workers aren’t employees in

“There is no doubt that, in uncertain times, talent agility is critical to organisational success. Using flexible, non-permanent talent can give you the skills that you need to get urgent work

the traditional sense, their work and performance still need to

done immediately. It can also help you to build a talent pipeline

be tracked. To manage this it is important to establish a flexible

to support future growth.”■

workforce programme to ensure that you have the right tools in place to manage this type of work effectively.”

Companies considering hiring contractors should consider the following: • Deemed employment: South African law makes provision for temporary or contract workers to be deemed ‘employed’ if temporary or contract employment persists beyond a certain period.

• 3rd Party tax and statutory exposure: If there is a transgression, it’s likely that the company will be pursued and not the contractor/temp worker.

• Worker misclassification: Incorrect classification of your freelancers could mean that you become liable for minimum wages, pension contributions, holiday and sick pay.

Georgina Barrick

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81

EDITORIAL CORPORATE SOCIAL INVESTMENT

Companies in SA spent R10.7 billion on CSI in 2020

By Cathy Duff, Director at Trialogue

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The top 100 companies (by CSI spend) accounted for 69%, or R7.4 billion, of total CSI expenditure. Of this R7.4 billion, almost twothirds was spent by the 20 companies whose CSI expenditure was more than R100 million in 2020.

EDITORIAL CORPORATE SOCIAL INVESTMENT

S

outh African companies spent an estimated R10,7 billion on corporate social investment (CSI) in the

Response to COVID-19 Almost all companies focused on the health and safety

2020 financial year. This represents a marginal 1.2%

of their staff (99%) and customers (83%) in their response to

growth in real terms from R10.2 billion in 2019,

COVID-19. Fewer (40%) offered support to suppliers.

according to CSI consultancy Trialogue. The research was

At least four out of five companies donated to COVID-

published in the latest Trialogue Business in Society Handbook,

19-specific responses, with most supporting interventions

released in late November. It reflects the 23rd consecutive year

in food security (64%), healthcare (60%), and in the form of

of fact-finding into the state of local CSI.

contributions to the Solidarity Fund (60%). Two-thirds took part

CSI expenditure in real terms has not shown a consistent trend since a period of growth between 1998 and 2013.

Although we see a slight increase in 2020, we expect that as the

in multi-stakeholder responses such as government dialogues and industry initiatives.

The reported impact of COVID-19 on CSI spend was mixed.

economy contracts, so too will CSI expenditure, which generally

Almost equal numbers of companies reported increased

lags GDP growth.

expenditure (26%), no change in expenditure (21%) or reduced

CSI expenditure remained concentrated. The top 100 companies (by CSI spend) accounted for 69%, or R7.4 billion, of

expenditure (21%).

Several companies (13%) reported that expenditure

total CSI expenditure. Of this R7.4 billion, almost two-thirds was

remained the same but was redirected to respond to COVID-19.

spent by the 20 companies whose CSI expenditure was more

Only 4% of companies ceased or put all CSI funding on hold.

than R100 million in 2020.

Companies that donated the most operated in basic resources (mining, water and forestry), retail – boosted by

Causes and geographies supported As in previous years, education was the most popular cause,

product donations - and financial services. Together, these three

supported by 95% of companies and receiving half of all CSI

sectors accounted for nearly two-thirds of CSI spend.

expenditure, said Duff. Social and community development

Non-cash giving (products, services, time) constituted 16% of total CSI allocation.

remained the second most supported sector, followed by health, then food security and agriculture. Disaster relief received a relatively small percentage of CSI spend, but many more companies contributed to it this year.

Corporates supported projects across an average 4.6 sectors, broadly consistent with previous years. This figure is significantly higher than United States companies, which are more focused and supported projects in an average 1.4 sectors in 2017.

Over half of CSI spend (54%) was allocated to projects with a national footprint. Gauteng was the most supported province in 2020 (48% of companies directed funding to operations in the province, which received on average 19% of companies’ CSI expenditure.) This was followed by KwaZulu-Natal (supported by 35% of companies) and the Western Cape (supported by 28% of companies.)

Funding recipients In line with previous years, non-profit organisations (NPOs) were the main recipients of CSI funding. Over 90% of companies directed an average 54% of their spend to NPOs. The next most common recipients were government institutions such as universities, schools, clinics and hospitals.

These were funded by 69% of corporates and received on average 25% of companies’ CSI spend.

One out of five companies funded social enterprises, which

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EDITORIAL CORPORATE SOCIAL INVESTMENT

aim to maximise profits while maximising benefits to society and the environment. This, however, amounted to only a small percentage (2%) of average company CSI spend.

2020/21 may delay the downturn in CSI spending.

As in previous years, the Trialogue Business in Society Handbook is noted not only for its in-depth research, but also for its expert contributions and striking design. This year,

Rationale and strategy The majority of companies (81%) rated ‘moral imperative’

images from The Lockdown Collection appear on the front cover and throughout the edition. The Lockdown Collection

as one of their top three reasons for supporting CSI, with 53%

is an art initiative founded this year to capture South Africa’s

rating it as the top reason. This is consistent with previous years.

COVID-19 lockdown and to support vulnerable artists. ■

More than half of companies undertook CSI because of licence-to-operate obligations other than BBBEE, although only

To read more: The Handbook can be downloaded free from

11% ranked this as their top reason.

www.trialogue.co.za/publications.

Reputational benefits, which ranked second in 2017, were rated lower this year. Only 35% of companies reported reputational benefits as one of their top three reasons for supporting CSI.

Impact of weak economy Discussing trends in local CSI, Duff noted that net profit after tax (NPAT) of the 194 listed companies analysed showed a median decline of 12.7% in 2020, reflecting the weak state of the economy.

CSI budgets are often determined as a percentage of NPAT and are based on the financial performance of the previous year. This results in a lag between current NPAT performance and budgeted CSI spend.

Declining corporate profitability is expected to have a negative impact on future CSI budgets, although the extraordinary contributions to COVID-19 relief programmes in

Trialogue Director, Cathy Duff.

Survey methodology The 2020 research refers to data from the 2019/2020 financial year, which differs across organisations depending on the month of financial year-ends.

Trialogue’s estimate of total CSI expenditure is based on analysis of data from various sources, most notably the published NPAT data of 194 companies and published CSI data of 104 companies listed on the Johannesburg Stock Exchange. It also considers the primary survey data collected by Trialogue and data from the South African Revenue Service (SARS).

The primary survey data was collected between April and August 2020 by professional researchers who conducted virtual interviews with CSI representatives from large South African companies. Companies also had the option to self-complete the questionnaire, which was then verified by the researchers. There were 75 participating companies. Of these, 53 (71%) also took part in 2019.

The surveyed companies were large with most (86%) having an annual income of over R1 billion in their latest financial year.

Almost half (47%) had an income of over R10 billion. Almost half of the companies (48%) employed 5000 staff or more, with one-third (32%) employing over 10 000 people.

Trialogue is a 51% black-owned company and the Southern Africa Local Authority for a global network of responsible business and social development-focused organisations, called the Global Exchange, overseen by the US-based CECP: Chief Executives for Corporate Purpose. Trialogue has offices in Cape Town and Johannesburg and shares its knowledge through its annual conference and handbook, digital platform (www.trialogueknowledgehub.co.za), training programmes and webinars. It also offers CSI and sustainability consulting and reporting services.

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www.ixengineers.co.za | info@ixengineers.co.za

EDITORIAL FINANCIAL EDUCATION

Challenging the failure of financial education - breaking the cycle of poverty by actively engaging young people Financial education in South Africa isn’t working very well. This is despite the best efforts of financial service providers which are required to invest 0.5% of their net profit after tax to educate consumers about money. It is estimated that about R1bn is spent annually on financial education programmes.

By Shafeeqah Isaacs, Head of Financial Education at DirectAxis

F

our-and-a-half years of data from 15 500 surveys shows that South Africans struggle with their relationship with money. They are not able to convert knowledge and skills into income-earning

opportunities, do not understand how to budget and where their money is going, which leads to an inability to save. Then, faced with an unexpected expense or emergency, they incur debt. So, the cycle begins.

The fact that some 85% of South Africans are over-indebted suggests a different approach is required – one that assesses outcomes and efficiency, not just how much was spent and how many people were exposed to the messaging.

It’s why, after two years of running a typical financial education programme that ticked all the regulatory boxes, DirectAxis decided to try a different approach.

It may seem contradictory for a financial services company that is primarily in the loans business to be looking for better ways to educate

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EDITORIAL FINANCIAL EDUCATION

people about how to avoid the debt trap, but actually, it’s

indicators to achieve independence and dignity. Participants

entirely consistent with our approach.

self-diagnose across these metrics using the Stoplight: red (I’m

Many people need loans for all sorts of reasons, from opening a business to furthering their education. We’ve been a successful business for over 25 years because we’re very careful

stuck), yellow (I’m struggling but trying) and green (I’m doing OK).

It’s being rolled out across some of South Africa’s most

about who we lend to. It is very much in our interest to have

impoverished communities as part of the gold programmes in

more financially educated consumers who borrow responsibly

the Western Cape, Kwa-Zulu Natal, Mpumalanga and Limpopo.

and pay back loans on time.

In addition, multiple Peer2Peer sites in the Northern and Eastern

So, we teamed up with an innovative youth peer-education

Cape will provide training for selected adults.

programme that has a proven model.

Called gold Youth Development Agency, over the past 16

To best evaluate efficacy, there are three target groups:

years it has developed and implemented a system-change

1. Parents of gold adolescent peer educators. This takes the

model to unlock the social and economic potential of South

form of two day-long workshops and two one-on-one

Africa’s youth.

poverty stoplight mentorship- and behaviour-change

To do this it pioneered a peer-based education system which it calls an ‘each-one-reach-one’ model. The peer educators are

evaluation sessions.

2. gold graduates entering the job market. This includes 10-

not necessarily the top academic achievers or traditional role

day work readiness and Me and My Money training and

models, but rather the cool kids, who others naturally follow and

two mentorship sessions.

want to emulate. This ensures the messenger is credible and

3. Me and My Money training for parents and young

resonates with his or her audience, which is then more likely to

adults on how to implement a Me and My Money peer

trust and act on the information.

education programme.

At weekly meetings, skilled young adult facilitators equip and mentor the peer educators. In addition, they are given academic

We don’t know which iteration will work best or even whether

support, work-readiness skills and workplace experience.

any of them will deliver the results we want. We do know that

Each student and facilitator are paired for four years, during

the peer education model works and that we’ve got to find a

which peer leaders are taught how to model positive decision

better approach than just spending money to tick the regulatory

making, educate their peers and younger children to make

boxes.

positive choices and maximise their impact in the community.

School principals, teachers, parents, community leaders

Whatever the outcome we’ve decided that this is opensource social investment, and we’ll share the learnings with

and local businesses are mobilised to create an enabling

anyone in the financial services sector who’s interested. Like

environment. Alumni are connected to future opportunities in

Volvo’s three-point seatbelt or penicillin, the societal benefit

further education, internships, access to entry level jobs and

outweighs any proprietary considerations. ■

micro-entrepreneurship support.

Using this model gold-youth has reached over 71 000 young people in 123 communities with concrete results in youth socialbehaviour change, education and job creation.

Now we’re employing the same proven peer-education approach to try and make financial education more effective and break the cycle of poverty.

Importantly gold is also deploying part of its monitoring and evaluation system called the Poverty Stoplight Tool. This allows households to generate a snapshot of their quality of life and reevaluates it again in 12- and 24-months’ time. The dual benefits are that it encourages people to want to change their red and yellow lights to green and also provides a way of measuring the effectiveness of the peer-to-peer education programme.

The financial education couple’s personal development and financial freedom training. It prioritises spending across 50

Shafeeqah Isaacs

SA PROFILE www.saprofilemagazine.co.za

87

EDITORIAL ENTERPRISE RESOURCE PLANNING

Five benefits of

ERP for African SMEs In the context of a tough post-pandemic business environment and in a sector where liquidity and cash flow are perennial challenges, SMEs’ ability to quickly adapt to this new normal can be the difference between survival and absolute disaster.

B

eyond navigating financial and operational pressures, SMEs also face substantive challenges such as business continuity and reduced demand for products and services.

The COVID-19 crisis is forcing SMEs to fundamentally

rethink their business models, in particular how they manage remote work and interact with suppliers and customers while managing widespread uncertainty.

Technology can empower SMEs to make credible

By Dumisani Moyo, Head of Mid-Market: Southern Africa at SAP

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decisions and better adapt to a dynamic and unpredictable business environment. In times of heightened uncertainty,

EDITORIAL ENTERPRISE RESOURCE PLANNING

such as what we are currently experiencing, one standout

oil’. The notion is predicated on the fact that raw oil isn’t as

technology for SMEs is Enterprise Resource Planning,

valuable as the final products that are produced once its

commonly referred to as ERP.

processed. In the same way, data isn’t as valuable as the

Technology enabling resilience to disruption

insights that are generated once it is analysed. ERP enables

The purpose of implementing an ERP solution is to

SMEs to analyse data and extract valuable insights that inform

provide an end-to-end information management system that

decision-making, enabling them to quickly adapt to changing

connects the right information, to the right people, at the right

market conditions.

time. It helps companies manage the countless processes human resources, supply chain, procurement, and customer

Benefit 4 – Improved compliance, governance and data security

relationship management to name a few.

If data is indeed the new oil, then organisations need to take

that make the business function effectively, such as finance,

An ERP solution enables the smooth flow of information

reasonable steps to safeguard it, both from a security and

across the business and gives decision-makers a real-time view

governance perspective. SMEs striving to comply with the

of the overall health of the business, with potential risks and

POPI Act or Europe’s GDPR, for example, can leverage their

weak spots more easily identified.

ERP solution to ensure sound governance by maintaining the

The common misconception that technology – and specifically ERP - is only accessible to large companies with

correct levels of access to data for various stakeholders within the business.

big budgets is misplaced. SMEs can also use technology to In fact, compared to larger companies, SMEs are well placed to

Benefit 5 – Accessibility of business-critical information

take advantage of technology. Because of their size, SMEs are

Cloud-based ERP systems enable business leaders to access

more agile and are able to make decisions faster and respond

business critical information from anywhere and at any time. In

to changing market conditions quicker.

our current state of disruption, having the ability to tap into a

become more efficient, more innovative and more successful.

Here are the top five benefits that SMEs can expect from implementing an ERP solution:

real-time view of the total health of the business is invaluable to decision-making. The ability to securely access information about the company’s operations from any device, anywhere

Benefit 1 – An integrated business management approach

and at any time is also an important component of business continuity. ■

An ERP system streamlines, automates and integrates multiple sources of disparate information and business processes.

This supports planning efforts by, for example, matching raw material purchases to accurate sales forecasts to minimise wastage in the supply chain.

Benefit 2 – Greater transparency, efficiency and cost-savings ERP solutions enable SMEs to store information once and without duplication. This removes inefficiencies and enables the entire organisation to work off a single source of truth.

Without an ERP system, valuable insights, such as production information used to calculate profitability may be stored in multiple silos leading to inefficiencies and potential wastages.

Benefit 3 – Decisions powered by predictive analytics and business insights Many technology pundits have dubbed data as ‘the new

Dumisani Moyo Head of Mid-Market Southern Africa

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EDITORIAL STOCK MARKET

How to tell

if we are in the midst of a market bubble

By Nishlen Govender, Portfolio Manager, Citadel & Maarten Ackerman, Chief Economist and Advisory Partner, Citadel 90

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EDITORIAL STOCK MARKET

With over 100 million cases of COVID-19 and 2.2 million deaths globally since the start of the pandemic, its impact cannot be underestimated.

The COVID-19 crisis has rocked economies around the world, resulting in rampant unemployment, massive shocks to businesses and households left in turmoil. Yet in the midst of this, equity markets are at an all-time high. So are stock markets overvalued, or are we facing another market bubble?

E

quity markets are simply a collection of

a similar range of products to compare to? Samsung may

companies listed on stock exchanges

appear an obvious choice considering the competition

around the world. In South Africa this

between Apple and Samsung devices. However, consider that

includes retailers like Mr Price and

Samsung also sells an array of other products while Apple

Woolworths, banks such as FNB and Standard

controls its own operating system, iOS, and you can see that

Bank, and restaurants like Spur. Globally, large

making a relative valuation from a company perspective is

companies established in various markets are

difficult.

also listed, such as Nike, Microsoft, Booking. com and Walmart.

The majority of these companies sell to

For this reason, investment professionals defer to a process known as the discounted cash flow (DCF) analysis, which attempts to find the present value of a future stream of cash

and service the public in some way and are

flows. To understand what this means, consider the process in

operating in the very same economies that are

the context of your home again. If you had to rent your home

being ravaged. Additionally, their employees

to another family, what would the new value of your property

are being affected by the virus every day in the

be? It is no longer just the value associated with selling the

form of lockdowns, social distancing and the

property in the future – you now have to consider the impact

upheaval of families via death or contraction of

of a recurring stream of rent. If you have a fixed-term lease and

the virus.

plan to sell the property at the end of the lease, then you need

Yet if all this is true, how can these companies be thriving with share prices at alltime highs? The idea seems like an oxymoron,

to determine the value today of those cash flows, as well as the value, today, of selling the house at the end of the lease term.

The DCF analysis offers the ability to find the present value

giving rise to the perception that equity markets

of future cash flows, thus providing a future value. Importantly,

are overvalued. But are they? The answer is

however, like any framework or formula, your inputs and

not necessarily simple and goes back to the

assumptions are crucial to the output. In the case of DCF, the

question of how to determine fair value.

key variables that affect the value you would pay for a financial asset is the growth in cash flows over time and the final or

How do we value a financial asset?

terminal value. In the case of renting your home, the level

One of the most relatable ways of understanding the fair value

of rent is crucial, as well as potential escalations in that rent

of financial assets is by examining the value of a property. For

and the final selling price for your house. The model is also

example, how much is your home worth to you? The answer

malleable: you could add the risk that your renter may default

often relates to the value of properties around you. However,

on their rent, that there may be property damage that you

you would also often adjust that value based on additions you

would have to pay for, and so on. The list is truly endless.

have made to your property relative to your neighbours. This

You can think of a company like Apple in a similar way.

includes items such as pools, air-conditioning, a pizza oven etc.

Apple is not just worth its current stock of inventory, properties

This is considered a relative valuation – the price of something

and equipment – its worth is also based on the company’s

relative to something similar.

ability to produce products and services that will be consumed

You can do a similar assessment with companies and achieve

in the future. To perform a discounted cash flow analysis,

a fair value for a share in a company (and thus the market).

investors need to consider and forecast a variety of factors

However, the key issue lies in finding companies that are as

related to a company’s prospects. However, there are four key

similar to each other as houses in a neighbourhood. Consider

levers that determine a significant part of a company’s value,

a company such as Apple – can you find a company that sells

namely:

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EDITORIAL NEW TECHNOLOGY

1. Sales or revenue: how the company makes money;

in turn would reduce the value of companies. This has mostly

2. Margins: how much profit a company makes from US$1

been avoided through more stimulus, as central banks around

of revenue; 3. Reinvestment: how much the company needs to invest in

the world have lowered interest rates and thus reduced the interest burden on loans. In fact, interest rates are so low that

capital to fund the assets (such equipment or inventory)

those less affected by the pandemic (both companies and

in order to generate revenue; and

individuals) could lever up and take on more debt, providing

4. The cost of capital: the return that you, as an investor, require from the business.

even more capital to spend in the economy.

Ultimately then, simply because the market goes up, it does not mean that equities are overvalued (or in a bubble) –

Understanding these factors and valuing that stream of cash

despite what the underlying economy is telling you. Although

flows into the future then allows us to determine the value of

discussed briefly, it is clear that the environment for companies

Apple and other stocks. But unlike our property example, it is

has been far more nuanced since the pandemic started given

crucial to understand that investment views differ widely, as it’s

stimulus efforts by governments and central banks.

challenging to predict future profit and cash flows. For instance,

As long as equities are offering value at a particular

what will Apple look like in 10 years? Will the iPhone still be

price or level, the risk of a bubble is lessened. In the current

popular? Will Apple have found a different growth lever to pull?

environment, we believe that the market might see a correction,

Each analyst and portfolio manager will have their own opinion

but we do not expect it would result in a wholesale crack across

of a company’s prospects and will thus determine their own

all stocks.

value of a stock.

This nuance is crucial as the support provided is recordsetting and is a vital offset to the extreme downside of the

Are all equities expensive?

pandemic. So, while equities may seem like they’re in a bubble,

If we try to incorporate our pandemic view into the framework

we believe that there is support for equity valuations at these

for understanding company valuations, we can now determine

levels, especially if we consider the development and roll-out

whether we are in a bubble. Given the pandemic’s effect on

of vaccines. We therefore don’t expect a severe market crash –

economies, we would expect revenue growth and margins to

the kind that often follows an equity bubble. Rather, we expect

be down for major companies. However, significant stimulus has

equities to be supported in the near term.

allowed those who are unemployed to continue to ‘earn’ and spend despite the virus. It has also supported many companies

particularly equities can shift quickly as events change on

that have received stimulus support directly, boosting both

the ground. As a result, the framework explored above is an

revenue and profits.

iterative and ongoing process. Thus, while we believe that

In addition, it is worth noting that companies and individuals

equities will be supported in the near term, we do expect

have loans to pay. Just like a defaulting renter in your property,

market volatility as investors grapple with the ever-changing

companies and individuals could default on their loans, which

global narrative. ■

Maarten Ackerman, Chief Economist and Advisory Partner, Citadel

92

Crucially, however, views on financial markets and

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Nishlen Govender, Portfolio Manager, Citadel

THE DRIVING FORCE BEHIND ALWAYS VISIBLE

Ctrack also provides integrated solutions with third parties and products that are not normally seen as true tracking products. This one-stop shop for fleet managers also provides a state-of-the-art camera solution, Ctrack Iris, where transport and asset managers can view live camera footage of dash-cams, as well as up to 4 cameras fitted to trucks, trailers and inside cargo bodies. In-cab devices that assist drivers with multi-tasking and route management is also a result of years of development of software reports, that are easily accessible via mobile devices and cloud-based platforms.

As part of the Inseego group, our objective is to transform business around the world, with innovative solutions, changing the way business communicate and collaborate, with actionable insights on cloud platforms. We stand for values where a sense of urgency, customer- focused marketdriven accountability and integrity is the foundation of our business.

2018

On the road to realising our vision of being an innovative global solutions provider, Ctrack has earned the following accolades and awards in recent years:

2015 2016 2017

Our wide range of products and services are made to suit your business’ needs including industries, such as; • Transport & Logistics • Airport Solutions • Mobile Assets • Security & Safety • Agriculture • Mining & Yellow Equipment • Safety and Security companies • Government and Public Transport • Driver specific Management tools • Small & Medium Business Solutions • Supporting Software & Business Intelligence Platform for all of the above.

ACCOLADES AND AWARDS

• Compass Intelligence award as a Compass-Intel IoT Innovator for an industry-leading Aviation Asset Management solution, engineered together with aviation partners to solve unique airline operations with innovative product technology worldwide.

• Global Brands Magazine’s Most Innovative Technology Company, South Africa • Frost & Sullivan’s African IoT Competitive Strategy Innovation and Leadership Award

• CFi’s Most Innovative Fleet Management Solutions Africa

• Top 5 finalist for Accenture Innovation Index • Finalist for Automechanika Johannesburg Innovation Awards

INDUSTRY PARTNERSHIPS National Small Business Chamber

The National Small Business Chamber (NSBC), established in 2007, is a dynamic and fast-growing nonprofit organisation that is committed to the success of Small Business in South Africa. Ctrack’s solution underpins the SMB market requirement, of providing a low-cost fleet management solution for these entrepreneurs.

The Road Freight Association The Road Freight Association (RFA) represents most transport operators in the South African road freight industry. The association makes provision for various categories of members and facilitates the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, crossborder transport, development funding for emerging operators, education, health, the fuel price, law enforcement, labour relations, and many other issues related to road freight transport. Ctrack has been a member for over 30 years.

Transport Forum The Transport Forum facilitates effective management sessions that enhance two-way communication between state and stakeholders relating to various aspects including road transport, safety and traffic congestion issues. The Transport Forum has become a highly representative and nationally recognised platform for thought leadership by organisations and individuals who are active in the transport and logistics industry.

Arrive Alive The Arrive Alive website was launched on 13 March 2003, as a private initiative to assist the Department of Transport, road safety authorities, and NGOs in enhancing awareness of road safety. 2019 is the sixteenth consecutive year that Ctrack has partnered with Arrive Alive to promote road safety.

Solar Race Challenge

2014

Our continued emphasis on researching and developing next-generation products ensures that we remain ahead of the market, meeting demands for value-added, flexible, feature-rich, and costeffective technology that keeps everything, Always Visible.

Through-out the years, Ctrack has received quality assurance accreditation for various markets; E-mark: European Automotive E-mark Certification TCA: Transport Certification Australia FCC: U.S. Federal Communications Commission VESA: Motor Vehicle Security Association of South Africa ABS: Accreditation Bureau for Security and Safety SAIA: South African Insurance Association

• Winner for ‘Management of Technology’ in the Enterprise category of the Technology Top 100 Awards endorsed by the Department of Science and Technology in South Africa • Finalist at Telematics Update Awards (Detroit)

Ctrack also supports the Solar Race challenge, where electric vehicle development is showcased every two years in South Africa, as part of the International circuit.

Our technology already then caters for electric vehicle adaption, as well as using battery powered units, that do not interfere with the Solar technology platforms in these futuristic vehicles.

2013

Our operations under the Ctrack brand, span over 55 countries on six continents with 500 employees and over 1 Million Ctrack systems sold. To further expand on our offering, we have strengthened our position as a provider of advanced machine-tomachine (M2M) communications and telematics solutions, for specific industry solutions.

ACCREDITATION

• Best Telematics Service Provider in South Africa (Ptolemus) • Preferred supplier of CO2 Emissions & Monitoring Technology in Southern Africa (Financial Mail Essentials, Green Business)

Our continued emphasis on researching and developing next-generation products ensures Ctrack remains ahead of the market, meeting demands for value-added, flexible, featurerich, and cost-effective technology that keeps everything, Always Visible.

2012

Ctrack, a Software as a Service (SaaS) solution offered by Inseego Group, is a global supplier of vehicle tracking, insurance telematics, and fleet management solutions. We provide tailor-made solutions for our customers, and we cater for business and industrial requirements. Our technology and electronic research division designs and develops a wide range of asset management and monitoring systems using GPS satellite positioning, GSM cellular communication, other advanced communication, and sensory technologies.

• First Prize in DTI Technology Awards: Advanced Hi-Technology Projects (DTI) • Competitive Strategy Leadership Award in the South African Vehicle Tracking Systems Market (Frost & Sullivan)

www.ctrack.co.za | sales@ctrack.co.za | Call Centre: 0860 333 444

Ctrack, keeping your fleet ALWAYS VISIBLE. For product information and specifications please visit: www.ctrack.co.za

Always Visible

EDITORIAL E-COMMERCE

5 reasons

to urgently implement a B2B e-commerce solution in your business The global pandemic forced many businesses to change. Companies and employees who had resisted digital innovation suddenly had no choice. The demand for online sales began to grow as populations were locked down to quell the spread of the virus. Businesses without an online or digital presence have been left badly exposed and many are playing catch-up.

By Andre Adendorff, Director of Presales, Seidor Africa

O

n the plus side, although COVID-19 accelerated the shift to e-commerce everywhere, it has the potential to be much

more lucrative in countries like South Africa where many more people are developing the habit of online buying for the first time.

There are perks to being late adopters of new technology, including greater reliability, costeffectiveness, and improvement. Over the last decade e-commerce solutions have proved themselves in global markets, not only with multinationals, but also in smaller businesses across many diverse industry sectors.

It makes sense for businesses that want to harness the power of automation and all the benefits that it brings to adopt the technology that have been most successful.

Here are five key reasons for implementing a B2B e-commerce solution in your business right now:

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EDITORIAL E-COMMERCE

1

Increased sales Today, with the move away from in-person sales and

events, digital sales is playing an important role in helping

5

Providing an omni-channel experience An e-commerce platform can support multiple channels

of customer engagement – web, voice, digital, email and more.

companies to find new opportunities quickly, meet customer

Supporting multiple channels within a single interaction is the

expectations and increase service levels.

complete omnichannel customer experience that is expected

By enabling efficiencies up and down the supply chain, an

by today’s B2B customers.

integrated B2B e-commerce platform makes it easier to meet

In the business-to-business (B2B) environment, having each part

those service levels, deliver on time, and keep orders flowing in,

of a business able to access the same repository of data has

with customers benefiting too.

been a revelation for companies that manage large, complex

In the wholesale marketplace, service level agreements

inventories.

(SLAs), are of the utmost importance. Enhancing customer

Wholesalers have traditionally invested well in ERP, stock

engagement and experience increases positive word of mouth

management, logistics, accounting software and other areas of

and loyalty, boosting sales and increasing profits. This is

IT because these solutions form the foundation of a successful

especially important in the B2B environment, where sales take

warehouse operation. ERP is no longer reserved for large

more time and patience is required to earn a buyer’s trust and

corporates. SME’s can buy a premium tool without paying a

loyalty.

premium cost.

2

By embracing e-commerce, digital transformation can allow

Improved brand awareness

you to scale your business significantly by making further

An e-commerce platform enables you to build a strong

improvements to efficiencies, reaching new customers in new

digital presence for your brand. It offers the perfect platform

markets, and attracting, retaining, and empowering the best

to connect with your target market and create meaningful

talent to help them grow.

conversations about your brand. It tracks the buying patterns of

The bottom line is that good salespeople need tools and

your customers and alerts you to when they might be running

support to perform at their best, and the reality of a forward-

out of products, so that you can alert them about restocking.

thinking 21st century sales environment is that digital offers

It’s a great way to keep customers happy while increasing your

massive benefits. It allows the sales team to serve customers

revenue. It also allows you to personalise the customer buying

more powerfully and generate better results across the board

experience, helping your business to build its brand.

— both in the customer experience and the company's bottom

Providing detailed product information and features is key for

line.

an effective branding strategy. You can demonstrate care about

Choosing the right e-commerce platform for your business

the needs and concerns of your customers by providing them

needn’t be a daunting and tough decision, nor a time-

with relevant information, including key features and benefits.

consuming task, provided that you opt for seamless out-of-the-

3

Enhanced cross- and up-selling

box ERP integration, coupled with B2B industry expertise. ■

Cross- and up-selling in the ecommerce environment

involves identifying related products and services and creating appropriate offers.

When customers have found everything, they need on your website, you can request feedback on how they feel your sales process can be improved and review their recent purchase to see if there are additional items that might complement their current order. This can help you grow your average order value with relatively little marketing effort.

4

Testing ground for new offerings An e-commerce platform provides an excellent testing

ground for the viability of new products, enabling your business to get real-world feedback and to gauge future demand.

Testing product viability ensures that you aren’t wasting your time or money when launching a new product or service.

Andre Adendorff, Director of Presales, Seidor Africa

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EDITORIAL SKILLS TRAINING

Why executives believe closing the skills gap

is an urgent priority In 2020, many businesses were unable to provide much-needed training for their teams as they didn’t have the right training solutions. Their inability to pivot to digital training solutions, resulted in severe delays in skills development and knowledge transfer.

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EDITORIAL SKILLS TRAINING

T

his skills deficit had a significant impact on a

2. Strategy

business, says Michael Gullan, CEO of G&G

A well-structured e-learning strategy lays out a plan for

Advocacy™.

businesses to bridge the skills gap and includes the specific

“What’s more, employees with perfect skills

learning needs of various skillsets ensuring employees of all

often move on or retire before skills transfer takes place.

levels stay engaged in the learning material.

Add to this, technology advances and changes in processes

3. User experience

as a result of global lockdown, and it has never been more

Smart e-learning solutions should be easy to navigate and

important for training and learnings to take place."

convenient for employees, even if they’re not digitally savvy.

Businesses that don't step up to address these needs will

This includes providing them an engaging and interactive

be left behind, as the shortage of skills will negatively affect

experience, which encourages employees to complete the

business operations and growth potential.

learning materials.

A McKinsey Global Institute Report indicates that a

4. Microlearning

shortage of skills will push at least 14% of the global

The Content Capsule™ methodology, which is highly

workforce away from their current employment by 2030. This

interactive and provides content in bite-sized learning

skills shortage was identified before the 2020 global health

moments, addresses the attention span of adult learners.

crisis, which disrupted industries and forced many companies

The method also caters to time-strapped employees', who

to implement remote working. This drastic new way of

struggle to find the time to learn and upskill themselves.

working impacted traditional classroom business training and

5. Gamification

learning.

Gamification motivates employees and promotes behaviour

Although the increasing skills gap is an urgent priority for

change to make learning fun. This includes game mechanics

many organisations, the McKinsey survey indicates that the

such as badges, achievements, leaderboards, animations,

majority of businesses aren't ready to address this need.

and sound effects to get your employees engaged and keep

“As much as lockdown disrupted all industries, it also

them motivated in training.

pushed business executives to rethink how they make learning and training accessible for all employees. Businesses

To address the increasing skills gap and ensure

that make e-learning a priority will be well-positioned for

business continuity, relevance and competitive advantage,

future disruptions in their industry,” Gullan says.

organisations should prioritise learning and training for all levels of employees. Doing so will ensure that your

eLearning is the answer

workforce has the right skills for their roles. Developing a

Technology is a long-term solution, that when deployed

business philosophy of continuous learning and training

correctly, can significantly address the skills gap, across all

will develop a pool of exceptional talent, improve job

levels, in an organisation. By implementing learning and

satisfaction, employee productivity and ultimately an

training through an e-learning solution, businesses can

organisation's bottom line.

address their most common concerns, including: • lack of employee time to participate in training;

Short-term low growth is ‘new normal’’ but longer-term view holds positive signs

• lack of employee participation and knowledge retention;

As the impact of the COVID-19 pandemic continues to

• lack of appropriate training technology; and

ripple through 2021 and South Africa faces economic

• lack of accurate reporting, data and detailed insights.

contraction and high levels of business risk, there are some

• budget constraints;

positive signals that suggest business should be playing it Here are five things to consider before implementing e-learning to bridge the skills gap.

safe for now while keeping an eye on the long game.

“When travelling over rough terrain it is often better to

1. Consulting

keep your eyes on the horizon as opposed to becoming

An effective e-learning and training programme starts with

obsessed with every pebble or rock in front of you,”

consultation, aligning an organisation’s learning objectives

University of Stellenbosch Business School (USB) guest

with their outcomes to ensure employees receive the

lecturer, Jason Hamilton said.

necessary information and are able to meet goals as a result of training.

“COVID-19 could not have happened at a less opportune time for South Africa, already suffering from high consumer,

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97

EDITORIAL SKILLS TRAINING

corporate and sovereign debt, with credit ratings below

2021, at about 2% are “not too great, especially coming off a

investment grade, low savings rates and high unemployment.

low base”.

Although they were necessary, economic support and and lockdowns amplified the economic woes but there are

On market fundamentals: Focus on the longterm

reasons for optimism despite this negativity,” he added.

Hamilton said that although global economic activity had

stimulus measures dipped the country deeper into deficit

Hamilton pointed to slow signs of recovery in global

started to show signs of recovery, a closer look at the global

economic activity, with emerging market currencies

Purchasing Managers’ Index (IHS Markit) data indicates that

strengthened by rising demand and commodity prices, and

“this remains precarious, and there has been continued

the rand, while still undervalued, expected to remain stable

slowing in many markets”.

with some signs of strengthening in coming months.

“Inflation is expected to remain within the SA Reserve

South Africa’s PMI data (December 2020: Absa) is similarly positive, “but our fortunes will be tied to markets such as the

Bank’s target range and interest rates are likely to remain

US, EU and Asia, and will be impacted by a stunted global

stable for this year. Globally, there has been an uptick in

economic recovery”.

capital flows to emerging markets, which bodes well for South Africa, and we expect to see an increased appetite by global asset managers for emerging market fixed investment.”

Hamilton, a director at First River Capital, said the African

Local economic activity will also be hampered by continued electricity supply issues “On a positive note, inflation is expected to remain within the target range of the SARB, which affords greater fiscal and monetary policy wiggle room. Expected stable interest rates

Continental Free Trade Area (AfCFTA) which came into effect

may even allow the Reserve Bank to lean against inflation if

on 1 January 2021, was set to be a key driver of growth for

required. This is something we do not generally see globally,

the continent, a market of 1.3-billion people and a trading

where rising production costs and COVID-19 stimulus has

bloc worth at least $3-trillion – “an opportunity not to miss”.

seen many markets running hot – something central banks are happy with over the short run, but the longevity of this

On COVID-19 and low short-term growth

approach is uncertain. There are clear signs of policy fatigue in

“The full impact of COVID-19 on global markets, the

the US and EU.”

economy and society is yet to be experienced and

determination of GDP growth difficult to achieve while South

roll-out plans remain unclear, it is expected for large-scale

Africa’s economy remained sensitive to global market changes.

procurement and delivery by mid-2021. Until herd immunity through a vaccination programme has been achieved, not

“A longer-term view may be required to gain a clearer understanding of the future.”

likely before 2022, the virus will continue to hamper growth.”

Market analysts Fitch Solutions expect emerging markets

Pre-pandemic, key markets were already exhibiting major

(excluding China) to take about two years to recover to pre-

fault lines, said Hamilton, with rising debt and muted growth

pandemic levels, while South Africa is projected to take as

in the USA, the Brexit-embattled EU facing low inflation and

long as five years, and this lagging behind other emerging

economic activity, and “even China underperforming against

markets is a major concern that would contribute to greater

expectations”.

social instability and could see capital flow to more attractive

“The impact of COVID-19 was profound. Lockdowns and global supply chain disruptions wreaked havoc, forcing

investment destinations.

However, Hamilton said, for context, developed economies

governments to launch significant stimulus measures.

such as France and the UK are also expected to take around

According to the World Bank, the global economy contracted

five years to return to pre-pandemic levels.

by 4% during 2020. There is expectation of a recovery with

“What we expect is an increased appetite by global asset

a forecasted 4% in 2021, primarily from emerging markets

managers for emerging market fixed investment, given the low

led by China, but the looming crisis as a result of the second

yields found in the EU and US – but the preference may still

wave of the virus and the challenges related to the roll-out of

remain with the Asia region given its better containing of the

vaccines means that it is really unclear what 2021 may hold.”

virus.

South Africa’s economy contracted by 8% in 2020, one of the deepest globally, Hamilton said, and growth estimates for

98

Hamilton said this combination of factors made an exact

understood. While the timelines and ability of vaccine

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“All markets will have to consider two factors: The shortterm recovery from the pandemic and the long-term position

EDITORIAL SKILLS TRAINING

of the economy post-recovery. It is more prudent to work from

“In South Africa, the tourism and travel industries as well as

the long-term position as an investor as opposed to try and

the alcohol and tobacco industries have been hard hit by the

predict and respond to a highly volatile and dynamic short-term

pandemic and government measures to contain the virus. The

view,” Hamilton said.

outlook on these industries remains negative until the virus has been brought under control. In addition to the winners

On the business environment

in healthcare and technology, locally we can also expect

Reason to be optimistic over the long-term is tempered by

agriculture, energy, renewables and infrastructure to enjoy

expected “extremely tough” trading conditions for most

strong growth in the coming years.”

companies over the next five years.

“As combatting the virus faces serious practical constraints,

While the uptick in capital flows to emerging markets bodes well for South Africa, this is a highly competitive market

many markets can be expected to remain closed or partially-

and the country is competing for investment against China,

closed, continuing to limit the movement of goods and people

India, Brazil and Mexico – “so the fundamentals remain that

for the coming 12 to 18 months.”

South Africa should focus on improving its attractiveness as an

Hamilton said that companies that have weathered the storm so far have done so with significantly more debt, depleted

investment destination,” said Hamilton.

On the launch of AfCFTA and Africa embarking on making

financial resources and possibly diluted equity positions,

itself a more attractive investment destination, Hamilton

seriously impeding their ability to access further funding for

said the goal was to boost intra-Africa trade which remained

possible growth-oriented capital allocations.

extremely low compared to similar trade areas in Asia, Europe

“Those with the deepest pockets and strongest balance sheets – thus larger companies – are best placed to access

and the Americas.

“Africa is a market of 1.3-billion people and a trading bloc

further local and global capital to survive and possibly thrive.

worth upwards of $3-trillion, but only 16% of current African

But we can expect to see an increase in liquidations and

exports are to other African countries, compared to 68% in

business rescue filings in 2021 as the pandemic drags on.

Europe and 59% in Asia.

“This will require companies to simultaneously take both

“AfCFTA will be a key driver of growth for all nations on

a conservative and a pragmatic view in plans and budgets

the continent and companies must ensure that they are in a

for 2021 – incorporating careful risk analysis and developing

position to benefit from this. It is certainly not without practical

contingency plans – while also devoting capital to future growth

and political concerns and issues, but a key investment drive

opportunities.”

should be made by local and global markets and companies

Hamilton said a rebound in merger and acquisition (M&A) activity was being seen globally, with the US posting record high

to ensure that this agreement is successful. It is an opportunity that is too important to miss.” ■

levels, but this had not yet flowed over to emerging markets.

“We expect these figures to rise in emerging markets during 2021 as larger firms embark on consolidation drives and others seek to off-load non-core assets and manage debt levels.

Companies will need to restructure their balance sheets in order to maintain a base from which to embark on growth paths and limit job losses.

“The risk is naturally for overleverage, which creates the opportunity for funding from venture capital or private equity funders to fill the gap of traditional equity and lenders. This is especially the case in the buy-out market, where we see great opportunities.”

Hamilton said investors globally retained appetite for those industries least impacted by the pandemic, such as pharmaceuticals, health, essential industries with low demand elasticity such as food retail, and others able to continue operating under lockdown conditions, with technology a “major winner”.

Michael Gullan

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EDITORIAL CUSTOMER SERVICE

BPO Insights: The changing face of customer service in a post pandemic economy South Africa’s BPO sector has gained credibility and worldwide recognition for its ability to navigate the COVID-19 pandemic, maintaining business continuity and client service, while safeguarding employee health. This has been achieved under tremendous stress as service teams experienced meteoric increases in customer service support queries amidst the chaos and confusion of the pandemic.

By Clinton Cohen

T

his is according to Clinton Cohen, CEO of iContact, a

unrelenting pressure in 2021 as customer service expectations

BPO provider specialising in inbound and outbound

have been radically and permanently altered by the pandemic

sales and customer support services, customer

experience,” says Cohen.

retention and loyalty management, lead generation

were thrown headfirst into online working models, having

24/7/365 basis.

to stress test their effectiveness and planning, adapting to

“Interestingly, while consumers may understand that these

new technology platforms and circumstances under huge

are trying times, it has not offered brands much relief in terms

pressure, time and cost constraints. Second waves around the

of customer expectations according to a report - Customer

globe mean these pressures remain, but there is the benefit of

Service Trends for 2021 – by Stella Connect. The survey

hindsight and learning to build more resilient business models

shows that 67% of polled consumers report having the same

going into 2021.

or less patience for a bad customer service experience since COVID-19 began. Customer Service teams face heightened and

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When the pandemic broke in 2020, many organisations

and back-office fulfilment for international businesses on a

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“While pandemic risks don’t occur often, when they do the impact and domino effect is severe. COVID-19 provides a

EDITORIAL CUSTOMER SERVICE

model that we should draw upon and drill test to reduce the

to deduplicate multiple logs and avoid wastage of efforts and

impact of such events in future, preparing appropriately for

resources.

the disruptive nature thereof in terms of operations, supply

Customers will say goodbye faster in 2021 as their

chains, IT systems and the most fundamental aspect of business

expectations rise exponentially. With high and rising customer

recovery – customer service,” adds Cohen.

expectations, brands will need to invest heavily into their service

Cohen provides insights on the impact that the pandemic

support offerings to deliver consistent, timely and professional

has had on how and when customer service is delivered, and

customer experiences. Real-time data and analytics will be

what this means for overall customer experience.

crucial in enhancing overall customer satisfaction.

Combined remote and in-office working models

Timing of service enquiries

The pandemic triggered one of the biggest trends that is likely

traditionally early in the day as soon as people got to the office

to endure long after COVID-19 is gone - combined remote

and tapered off in the afternoons, remote working has turned

and in-office working models. While initially challenging in

this on its head. We now see service enquiries to our call centre

the early stages due to the radically changed operational and

starting much later in the day, presumably after people have

connectivity requirements, much refinement has gone into

sorted out family responsibilities, but they are also extending

providing the tools and support for hybrid work arrangements

to much later in the evenings when people have time on their

that allow companies to pivot in either direction, in line with

hands. This has implications for agent staffing and availability.

their unique circumstances and those of the customers they

“While it’s impossible to predict with certainty what the

Timing of service enquiries has shifted – where these were

serve. Today’s BPO operations need to prepare for and optimise

months ahead will hold, there are certain fundamentals that

the hybrid working models that cater for a fluid spectrum

we must build upon – most notably is that customer service

of options. While the initial work-from home movement

BPO teams will play a fundamental role in helping our clients

was a necessity at the time, the hybrid working models of

to recover from the economic and human crisis that has been

tomorrow are an opportunity to achieve greater innovation and

unleashed by this pandemic,” SAYS Cohen.

productivity levels by being flexible, digital and responsive to the needs of customers and service team members.

“We need to unpack and build upon the important lessons that continue to emerge in order to build resilient and adaptive business models that can safeguard customer experience, even

Shifts in customer expectations

in its most precarious state. We need to carve out not a ‘new

There have been major shifts in customer expectations

normal’, but a ‘new better’ where multichannel customer service

driven by the instant gratification that comes with digitisation.

is at the centre of business and economic recovery,” he ends. ■

Consumers increasingly expect immediate responses so the importance of managing their expectations is vital – whether

www.icontactbpo.co.za

that contact is through e-mail, WhatsApp, chatbots, AI or a service agent.

Offering multichannel, AI-driven client service platforms is essential, but not a replacement for a service agent. Chatbots, WhatsApp, live chat/webchat and other self-service platforms have been invaluable in providing scale and resolving simple service queries to reduce volumes, however, they are not an effective replacement for human engagement on complex queries. In fact, 80% of US consumers still prefer to interact with a person when they have a customer service need, according to the Stella Connect Customer Service Trends 2021 report.

The proliferation of multichannel self-service options also had unintended consequences, with meteoric increases in duplicate customer support logs across multiple service channels. In resolving this challenge, BPO providers will need to be clear about managing customer expectations in terms of response times and deploy sophisticated analytics capabilities

Clinton Cohen

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EDITORIAL PERFORMANCE MANAGEMENT

Manage output not presence - the new normal of remote work Performance management can be an excruciating experience for both managers and employees, and the process of measuring performance is potentially even more challenging when done at a distance in today’s ‘new normal’ of remote work.

By Jason Hamilton

T

he COVID-19 pandemic has accelerated trends

but most companies continue to use traditional methods of

towards technology-enabled remote work and

goal-setting, measurements, reviews and ratings. Research

meetings, teleworking, and automation, with a survey

has shown that performance management is most effective

of South African firms finding that at least 38% of the

when “managers have a clear purpose on why it needs to be

country’s active workforce were working from home in 2020,

done, and the purpose and process are communicated with

compared to 4% pre-pandemic.

employees openly and transparently”.

Remote working is not expected to go away any time soon,

meeting overload, Dr Winkler-Titus says the need for open

survey estimated that 33% of their employees would still be

communication did not always have to mean another online

working from home in three years’ time.

meeting or formal email. She encouraged ‘casual check-ins’ on

The impact of the pandemic and successive lockdowns hit business hard – with liquidations in the 4th quarter of 2020 up

progress and how the employee is coping with remote work.

Online, collaborative progress tracking tools can also be

by 20.5% on the final quarter of 2019 , and 2.2-million jobs

applied to track delivery of individual contributors, ensuring

shed in July-September 2020 as companies were forced into

meetings are focused on qualitative discussions as opposed to

retrenchments or closures – and the focus now for those that

activity tracking.

have survived needs to be on sustainability in the ‘new normal’,

“That kind of open communication is not easy to achieve

says Dr Natasha Winkler-Titus, Senior Lecturer in Organisational

in virtual meetings and emails but it is critical if performance

Behaviour and Leadership at the University of Stellenbosch

management in a future of remote working is going to be

Business School (USB).

effective. Research at the USB during lockdown showed that

“2020 for business was about adapting and surviving and

while employees experienced many positives in working

hoping for a ‘return to normal’ but clearly that is not yet likely in

from home, they missed the interaction and support of an

2021 and business is now compelled to focus on moving from

office environment, and so it’s important that performance

survival to sustainability. Talking about sustainability implies a

management methods continue to be done in a way that

need to focus on productivity and measuring and managing

promotes connection and interaction, rather than disconnection

the performance of individuals and teams in alignment with the

and disengagement,” she comments.

business’s goals is central to this,” she adds.

Performance management has its pro’s and con’s, she said,

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While remote work can become a situation of online

as lockdowns continued into 2021 and employers in the same

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Dr Winkler-Titus says a “simple and engaging process with fairness and compassion at its centre” was a key element in

EDITORIAL PERFORMANCE MANAGEMENT

performance management, particularly under the current circumstances where remote working presents employees with multiple social, family and financial challenges in addition to the pressure of working from home in an environment not always designed for work.

“On the plus side, this ‘new normal’ of working arrangements

forced into defensiveness, making it difficult to provide support and turn the situation around.

• Avoid one-way communication – allow the process to be employee-driven by inviting feedback and finding ways for the employee to track progress.

• Enable the employee to take ownership of their own

is an opportunity to really focus on actual output as opposed

development and how to improve their performance, by

to mere presence and visible activity in the office as a measure

ensuring expectations are clear and mutually understood,

of performance. Trust has been found to be a key element

having regular, informal conversations and providing

in managing virtual teams, and is built by setting accurate, mutually-understood expectations.

“Remote working arrangements are an opportunity for

ongoing coaching.

• Invest in the person – understand their life goals and challenges, especially what may be their unique

managers to build trust by ‘letting go’, not making stereotypical

circumstances and challenges related to remote work and

assumptions about working at home being an excuse to slack

show compassion. Understand their level of engagement

off, and showing that they trust their employees to get the job

with the work, team and organization, and address

done without the control that applies when employees work in

problems they may have there.

co-located spaces,” she said.

Best practice performance management systems should support achievement of the organisation’s strategic objectives

Research also shows that generally people avoid difficult conversations.

“Especially after a tough performance discussion, the

and specific goals, and answer the questions of “what business

leader may be tempted not to engage, to allow the employee

problem needs to be solved”, what must be evaluated to show

time to think, but this brings a risk of the employee feeling

achievement of the business goals.

overwhelmed and insecure,” says Dr Winkler-Titus.

Dr Winkler-Titus said managers of remote teams could not

“Check in with your team informally and encourage them

afford to ignore under-performing employees whose lack of

to do the same with each other – don’t ‘ghost’ your people,”

contribution negatively impacts or influences the team.

she said. Managing performance calls for managing delivery, leading and inspiring people and coaching the individual.” ■

Her advice for managing poor work performance remotely includes: • Revisit expectations and make sure that they are clear and consistent. Clear expectations, priorities, standards and criteria for success provide a clear yardstick and fairness, especially in situations where an employee doesn’t share the manager’s view of under-performance.

• If the employee lacks skills or experience to do the job, consider support mechanisms such as training, mentoring or coaching. Ensure that you understand the exact source of the challenge and put support in place in partnership with the employee. Set up the support remotely – training, mentoring and coaching are ideally suited for online and virtual modes – rather than waiting for a time when everyone is working in the same office again.

• Don’t make the employee feel attacked as they will be

Jason Hamilton

1 Survey by business consultants Willis Towers Watson of 66 SA firms employing 207 000 people, conducted in September & October 2020. https://www. willistowerswatson.com/en-ZA/News/2021/01/working-from-home-is-here-to-stay-but-firms-have-no-plans-for-jobs-offshoring-or-pay-cuts-tied 2 Statistics South Africa report on liquidations and insolvencies December 2020, released 25 January 2021. http://www.statssa.gov.za/?page_ id=1854&PPN=P0043&SCH=72680 3 Statistics South Africa Quarterly Labour Force Survey, Q3 2020, released 12 November 2020. http://www.statssa.gov.za/?page_id=1854&PPN=P0211 4 Pulakos, E. D.; Mueller-Hanson, R.; & Arad, S. (2019). The Evolution of Performance Management: Searching for Value. Annual Review of Organizational Psychology and Organizational Behavior, 6: 249-271, https://doi.org/10.1146/annurev-orgpsych-012218-015009

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ADVERTORIAL MTN SA FOUNDATION

Uplifting and empowering our youth The MTN SA Foundation is MTN’s primary vehicle for contributing to transformational social change. Through it, MTN is able to deliver a number of structured corporate social investment interventions and contribute to the development of South Africa in an effective manner.

While there are many varied ways of tackling the pressing social issues facing South Africa, the MTN SA Foundation’s approach is to use technology to create shared value in its focal area of education. This flagship programme is complemented by a number of carefully selected themes and interventions designed to allow the MTN SA Foundation to be responsive in delivering solutions to the most marginalised among us. These include digital inclusion, with a view to equipping young people with the ICT skills they need to cope in a rapidly changing world.

Tackling the digital divide and equipping young people for the future The youth of our country are amongst the most powerful drivers of social change and the MTN SA Foundation wants to harness that spirit to help create the business leaders of the future. ICT in education is vital as it delivers specific scholastic content to individual learners, adapting to the learner’s needs. By harnessing the power of information and communication technologies, learner outcomes can be improved and students adequately prepared to play a meaningful role in the digitised world.

We know that while South Africa has made notable strides in broadening access to telecommunications and technology, the country continues to be characterised by a deep digital divide. This perpetuates unequal access to opportunities, making it harder for historically disadvantaged youth to benefit from employment and entrepreneurship opportunities. We know that while young people are often considered “digital natives", the majority of them do not possess sufficient digital skills required for them to succeed in the workforce. Given the right support and resources, young people can drive growth and innovation using ICT. As a major player in the telecommunications industry and employer of a large workforce, MTN believes it has an important role to play in providing youth with opportunities to enhance their ICT skills and long-term career prospects. MTN also has a role to play in creating an enabling environment for innovation, entrepreneurship and job creation in the digital economy. The MTN SA Foundation’s interventions are designed to respond to this challenge.

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ADVERTORIAL MTN SA FOUNDATION

All the initiatives the MTN SA Foundation support in enterprise skills development will ensure that the next generation of entrepreneurs are equipped with the skills needed to grow and sustain their businesses and become the business leaders of the future.

At school level, the MTN SA Foundation supports the Students for the Advancement of Global Entrepreneurship programme (SAGE), which targets teenagers (13 - 19 years) across the country. The programme is aimed at inspiring and educating teenagers about the fundamentals of entrepreneurship and the exciting opportunities that exist therein. The programme’s vision is to raise the next generation of teenagers whose innovative ideas address the world’s most pressing challenges as envisaged in the United Nations’ Sustainable Development Goals (SDG’s). These challenges include unemployment, poverty and environmental protection.

In partnership with the University of the Free State, learners are mentored by trained program alumnus who are available throughout the year to assist them with the program business requirements as well as other business-related queries. They also receive assistance in identifying and starting up real businesses that solve critical problems.

Learners furthermore compete against each other at different levels (regional, provincial and finally on a national level) where they have the opportunity to showcase their businesses or business ideas through live presentations to community leaders and industry leaders and ultimately to be crowned South African Teen Entrepreneur of the year. The winners of the national competition then proceed to represent the South Africa at the SAGE World Cup. At university level, the MTN SA Foundation partners with Enactus South Africa to deliver business training and mentorship to tertiary students across the country. The programme culminates in an annual youth entrepreneurship development competition. Through it, young people are challenged to design projects that demonstrate their entrepreneurial skills and aptitudes. Through the National MTN ICT Challenge, MTN collaborated with Enactus South Africa and challenged University teams to come up with innovative ideas to address social challenges under the categories of Agriculture, Health and Education. 12 universities in South Africa will be funded by MTN SA Foundation to develop and launch their mobile app solutions.

In 2020, 23 universities were involved in the Enactus initiative, with a total of 2 590 students participating. Following their crowning as South African champions, the team from the University of KwaZulu-Natal (UKZN) will represent South Africa in the World Cup finals which will be hosted virtually through an online platform as a result of Covid-19 and international travel restrictions. This global stage will provide the students an opportunity to go compete with their peers from around the world at the Enactus World Cup. To support SMMEs, the MTN SA Foundation has partnered with Datacomb Development Hub, the University of the Free State and Hodisang Dipeu Holdings. By supporting this initiative, MTN contributes to the creation of businesses that are robust, innovative and able to develop solutions that address the challenges facing our communities.

For more information please visit mtn.co.za/foundation

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EDITORIAL UNEMPLOYMENT

Why unemployment

is shackled to business growth The great economies have always been built on cause and effect. When businesses are primed to succeed, unemployment reduces. The fact is, a company is either in growth or decline, and to ensure our future employment, growth quite obviously is imperative. With future-first thinking, new employment opportunities are created, even as old positions become redundant. This sounds simple enough but is there enough of a focus on the cause of growth – the essential factors that stimulate profitability and employment?

I

van Radmore, CEO of the free-to-access online business platform BuzzApex, believes we often overlook the essential building blocks.

“The purpose of a business is to make a profit. Any

unbelievable numbers.

The ‘Like’ and ‘Follow’ buttons have created business opportunities that were never considered in the past because we were locked into the present and not looking to the exciting

employment offered is a direct result of that profit. If we accept

future. It takes brave thinking to embrace future jobs when

that employment is a by-product of business, then it’s not

people are concerned about their current situation. However,

difficult to relate that back to unemployment. It is, therefore,

history has taught us that those who resist change get left

reasonable to accept that any country with an unacceptable

behind. This is a position that ironically fuels job losses.

unemployment ratio to population also suffers from a shackled

“As a child, my mother and many others were concerned that

business environment, as the two are systemic. What is defined

bookkeeping was shortly to become a job of the past because

as acceptable is very much dependent on the country and

of computers, yet today we see the skyline littered with new

industry leaders’ definition,” he says.

buildings erected to create office space for all those that are needed to feed and extract data from computers. I hear people

Future-forward is future friendly

telling me today of the threats posed by robots and Artificial

Many developing countries, possibly in response to their

Intelligence, but unlike in the past, I’ve realised that technology

voter base, resist embracing new technologies. The closure

brings employment and we only need to look at how many are

of outdated technology results in job losses and the resultant

employed in the manufacture and distribution of smartphones

negative press can be costly at the polls. Companies are also

to understand this point. The faster we embrace innovation the

warned of the hazards that technology brings to employment

better life will be for the next generation. This is not a time to

but let’s be reminded that the drive-ins and cinemas were

fear progress,” says Radmore.

replaced with the video stores that employed more people.

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The video stores have faded out now and yet, if we search

Sometimes you need to lose now to win later

for the results of the number of people now needed to run

An important factor to consider is that when the cost of labour

the millions of servers at Google, Facebook, Netflix, Youtube,

exceeds the cost of automation, or there’s a perceived risk

and the many others that feed us the entertainment we find

of dire consequences that outweighs the cost of automation,

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EDITORIAL UNEMPLOYMENT

unemployment rises. Whilst these realities can be disregarded

business community to streamline their operations and ensure

by trade unions and socialistic groupings, they are nonetheless

that they have the controls in place to help each other and

a fact of life that will escape no economy. It's only when there is

navigate the challenges ahead. This kind of technology will

no bread on the table that we gain hindsight.

not only propel business success but future-proof companies,

In South Africa, the lack of investment in intelligent business

resulting in positive employment stats. This business-first

solutions and statutory protection of industry has impacted

approach must be replicated across the country because

more people than has been conceded. Ironically, this has

ultimately, it benefits all,“ concludes Radmore. ■

undoubtedly driven costs upwards making automation appealing. The worst of the automation on a national scale is probably behind us, but now offering employment comes at a risk. It has become prudent to consider all alternatives before embarking on recruitment. Therefore, the time has come to address the current socio-economic imbalance versus future gain. After all, in 2020 alone there has been a substantial increase in the use of technology, at a rate of adoption that could have taken another few years were it not for the coronavirus.

This presents opportunities to embrace the future - that is closer than it once was. Focusing purely on what’s best for a company or industry can seem like choosing to profit over people. But if we don’t invest 100% in what does work today, eventually, the unemployed will become an overwhelming challenge that no responsible country can afford.

“Technology solutions like BuzzApex are brought to the market because it provides workable solutions that help the

Ivan Radmore

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EDITORIAL THE FUTURE OF WORK

15 Critical skills to master for the future world of work Ask anyone what the crucial skills are to compete in the future world of work, and they’re likely to rattle off a list of competencies such as coding, robotics, digital marketing, programming and so on. This overt focus on technical or digital competencies stems from the belief that machines and robots will automate jobs and remove the need for human labour and skills in the Fourth Industrial Revolution, making millions of jobs redundant.

By Dr Eric Albertini, Future Fit Academy

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G

ranted, there is some truth in the fact that many jobs will be automated and driven by computers and artificial intelligence – but this has been a

business reality for decades in the drive for business operational efficiencies and the achievement of that truly important state called progress!

In fact, for every pessimist who believes tech and disruption will make more jobs redundant and signal the end of 'being human', history has categorically proven that technological advances create more jobs, in different industry sectors. The big question that everyone should be asking of themselves, of their leaders and workforce, is not what technical competencies are needed, but rather: “Will I rise to

EDITORIAL THE FUTURE OF WORK

the challenge of learning what is required to stay relevant in

conflicting directions and multiple demands. COVID-19

the future world of work? Do I possess the crucial human traits

has taught us this in truckloads.

and behaviours to be a lifelong learner, to embrace change to continually learn new, in-demand skills to empower myself to transition and face the future of work successfully?”

It is important that we pick up our pace of change and look to build capability that helps us to adapt, thrive and succeed within an ever-changing world. For any employer, employee, student, leader or entrepreneur looking to get a handle on what the skills of the future will be, the list is onerous. A Google search on 'future world of work' yields in excess of three million results. A search for 'skills for future of work' yields approximately 700 000 results. There is an avalanche of literature suggesting the 'top skills for the future of work', yet no definitive list of what these skills are.

Instead, to cut through the clutter, and through literature review and years of consultation and work with corporates, local and international business schools, think tanks and providers of management and executive education, the Future Fit Academy has defined 15 ‘behavioural’ future fit skills as critical to being relevant and competent, if not advanced, in the future of work.

4. Learning agility - the ability and willingness to learn from experience and use those lessons to perform effectively in new and different situations.

5. Growth mindset - The mindset that talents can be developed through hard work, good strategies, and input from others.

6. Design thinking mindset - an ideology and a process concerned with solving complex problems in a highly user-centric way.

7. Sensemaking - refers to how we structure the unknown so as to be able to act.

8. Creating clarity – also known as 'visioning and mobilising', is about defining shared values and engaging people in positive action.

9. Adaptability - is about having ready access to different ways of thinking, enabling leaders to shift and experiment as things change.

10. Cultural adaptability - an individual's willingness and ability to adapt their manner of communicating, motivating, and managing across cultures.

Organisations must develop their human capital ‘muscle’ The emphasis on the ‘Future Fit’ skills is equally as important to individuals as it is to employers and businesses. To meet

11. Virtual collaboration - collaboration between dispersed team members that is carried out via technologymediated communication.

12. Change resiliency - being able to adapt well and bounce

the skills challenge and ensure that businesses are sustainable

back quickly in times of stress and constant change.

and competitive demands that organisations developing their

13. Resourcefulness - the ability and creativity to cope with

human capital ‘muscle’ to strengthen companies for future

difficulties, the ability to deal resourcefully with difficult

disruptions. Companies need a talent strategy that develops

problems.

employees’ critical, future fit skills. For individuals, the need to upskill has never been more pressing.

Reskilling could be the best strategy for individuals to ensure they are flexible and nimble resources in ‘disrupted’ companies

14. Leading without authority - getting others to willingly cooperate and engage, rather than following directives because of your positional authority.

15. Connectedness - the ability to relate to others in a

– and as indispensable as possible.

manner that builds them up, encourages, and brings out

In harnessing and developing these 15 skills, the Future Fit

their highest potential.

Academy developed a Future Fit Index which provides a comprehensive self-assessment tool that assesses your level of

Being ‘Future Fit’ is not simply about technical skills or

effectiveness in these 15 critical skills needed to be effective

competencies, but rather a holistic set of skills, behaviours and

now, and in the future world of work. They are:

traits that are inherent to being ‘human’. It is these 15 crucial

1. Curiosity - the desire to know more about something or

behavioural skills that lay the foundation to being a lifelong

someone. The willingness to seek out and embrace the

learner who is able to focus on continual learning of new,

unknown.

in-demand skills and able to claim your power in facing the

2. Dealing with paradox - the ability to deal with seemingly opposing or contradictory perspectives, the ability to think 'both/and' instead of 'either/or'.

3. Tolerance of ambiguity - the degree to which an individual is comfortable with uncertainty, unpredictability,

future of work successfully.

In our changing work climate, lifelong learning paves the way for success in a future world of work that has in fact already arrived and is morphing and evolving at exponential rates.

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EDITORIAL THE FUTURE OF WORK

Why are these 15 future fit skills so important?

knowledge and behaviours required to remain relevant and effective in an ever-changing world.

Based on the ‘knowing-doing-being’ framework, the Future

Being Future Fit for a changing world of work extends

Fit Index takes into account all aspects of good leadership

to a concept of the 'whole person', moving the focus from

and management and how it works in practice. It recognises

intellect and ‘qualifications’, to personal areas of strength

the need for rounded development across technical

and weakness across a variety of essential leadership and

knowledge, capability and personal awareness.

success traits. Being able to execute strategy, lead and

The reality is that many technical competencies you

manage uncertainty effectively extends well beyond technical

learned at university, on the job or at a technical college are

competencies, into the realm of behaviours and personal

likely to become outdated and redundant in a world facing

traits that can and should be learned and developed as much,

exponential change (ask Kodak and BlackBerry leadership).

if not more, than any ‘academic’ qualification. ■

However, your ability to embrace the opportunity that comes with change, learn new skills on a lifelong basis, and cope with the stresses of uncertainty are underpinned by your ability to harness and leverage the 15 future fit skills.

Consider for example, the software developer or programmer who learned the ropes on (now seemingly archaic) Cobol, C++ and Fortran programming languages.

Those who evolved their skills and embraced the rapid change and uncertainty of the tech world earn 6-digit salaries in 2020 on Python, Perl, Scala and Javascript.

Consider the self-employed electrician who is now a solar PV specialist able to integrate the Internet of Things (IoT) into his customer’s smart home, green energy management systems, and leads a team of technicians and salespeople on our country’s energy transition. It is a huge leap from the good old days of wiring up DB boards and issuing COCs. Consider the once retrenched accounts clerk who took the leap of faith to self-employment (and self-determination) to build up her book of clients in need of outsourced accounting services.

Consider the business and HR leaders who are tasked with having to reskill and upskill entire workforces to deliver new business models in a post-pandemic era.

Technical qualifications count at a base level of being competent to do a certain job, at a certain level. But one’s level of mastery of the 15 Future Fit skills will determine ones ability to evolve, learn new skills, progress and remain relevant in the future world of work – whether as a business leader, an employee, an independent consultant or entrepreneur.

In mastering the 15 Future Fit skills, the detailed Future Fit Index provides respondents with an awareness of their level of readiness across these skills, as well as a developmental pathway for each of the 15 skills assessed. By understanding your level of readiness on each of these 15 future fit skills, the Future Fit Academy is then able to formulate a learning strategy to guide behaviour change and master these skills,

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Dr Eric Albertini has spent the last 25 years in leading South African organisations, fulfilling roles in finance, marketing, sales, and strategy and leadership development. He has consulted to organisations of all sizes across a range of industries in the areas of sales, sales management, marketing, business strategy and leadership. Having operated at all levels within both local and international organisations.

He has consulted with, and facilitated at The Institute of Marketing Management, The University of Johannesburg, Wits Business School, The Centre for Creative Leadership, Pearsons CTI, University of Stellenbosch Business School – Executive Education, The American Management Institute, and Management Centre Europe.

He completed his Doctorate in Philosophy (Leadership), and holds a Masters in Philosophy (Personal; Interpersonal and Professional Mastery), a B.Comm (Hons) degree in Financial Management (Cum Laude) and the IMM Diploma in Marketing Management.

The Future Fit Academy (FFA) is a centre of excellence in South Africa business school, specialising in helping individuals, teams, leaders and organisations equip themselves for changes in the world of work. We help you to make sense of the disruptors that are changing how you live and work, and help you master the skills, knowledge and behaviours required to continue to remain relevant and be effective in an ever-changing world. We use The Future Fit Index (FFI) to assess readiness in terms of a range of future skills and provide integrated solutions and developmental pathways to develop these skills. www.futurefitacademy.com

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ADVERTORIAL BERACA ACCOUNTANTS & AUDITORS

Multi-discipline audit firm offers high level of quality and assurance Beraca Accountants and Auditors is a multi-discipline audit firm that was established in 1999 and has offices in Secunda, Sandton and Cape Town.

T

he managing partner is CJ Stokes, a registered auditor with the Independent Regulatory Body for Auditors and a charters accountant registered at the South African Institute of Chartered Accountants (SAICA). He is also a registered member of the South African Institute of Tax Practitioners.

Stokes has significant knowledge of the current challenges facing the business enviroment as he is representative at various committees, including committees at SAICA. He is currently serving as the Chairman of the Highveld District Committee at SAICA. Beraca Accountants and Auditors is your one-stop service provider for accounting, auditing, consulting, statutory and secretarial inquiries, for individual as well as all business entities.

Clients include listed entities and their subsidiaries, multinational corporations, non-profit entities including schools, private and public companies, as well as the general public.

Beraca Accountants and Auditors’ philosophy is to engage with its clients to assist them in decoding the complexities that they may face, develop a solution fit for business and assist them to implement and execute it.

Services include: Audit As registered auditors, Beraca Accountants and Auditors provide many levels of audit services, including reviews, compilations and agreed upon services. It also provides assurance to clients on their reporting about the financial performance of their operations. Clients are also assisted in adhering to regulatory requirements as part of the company’s wide range of attest and attest-related services.

‘Our transparent and consistent approach enables us to build confidence and trust with our clients, as they rely on us to assist them to manage their operations with integrity and report accordingly within the current regulatory environment,’ says Stokes.

Accounting Beraca Accountants and Auditors’ range of business accounting and business tax services allow it to attend to all of the regulatory reporting and lodgment requirements of a business. In addition to that, a dedicated accountant, supported by Beraca’s entire accounting team, can conduct regular reviews and analysis to provide the client with sound accounting advice and strategies which may assist the client to significantly improve their accounting practices and procedures.

‘This proactive approach ensures that any potential accounting opportunities for the business are promptly identified and are able to be appropriately leveraged to gain maximum results for your business,’ Stokes explains.

‘We can also assist you to maximise your wealth by legally minimising your tax, as well as integrating financial planning advice and assisting with budgeting advice and expense control,’ he adds.

Tax consulting services As independent tax consultants, Beraca assists business, individuals and organisations with tax strategy, planning and compliance on a local and nationwide basis.

‘Ongoing reforms in the tax regulatory environment and improvement in the tax collection ability of revenue authorities have elevated the tax function from a compliance issue to a business risk – a risk that could have a material impact on the results of a business or a specific transaction,’ Stokes comments.

‘We are also an associated member of the CORE group, whereby we can assist with financial solutions, BB-BEE consulting, secretarial services, training for executive teams, business development, trust and estate services and cloud accounting, to name a few of our specialities,’ he adds.

‘We believe that we are small enough to be nimble and effective, yet big enough to support any size entity with professional advice that is affordable and of a high level of quality and assurance.’ ■

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SA PROFILE www.saprofilemagazine.co.za

The accounting and audit firm where the future of accounting The accounting and audit firm where the future of accounting is NOW. is NOW. We are your multi-discipline service provider of choice for all We your multi-discipline service provider of and choice for all yourare accounting, auditing, consulting, statutory your accounting, auditing, consulting, secretarial needs from a corporate to a statutory non-profitand to the secretarial needs from a corporate to a non-profit to the individual. individual.

We are small enough to be nimble and efficient, whilst big We are small enough be nimble and professional efficient, whilst big that enough to support anytosize entity with advice enough to support sizelevel entity professional advice that is affordable and atany a high of with quality and assurance. is affordable and at a high level of quality and assurance.

Century City Cape Town Century City Cape Town

Bekker Street Trichardt Bekker Street Trichardt

West Tower, 2nd Floor Nelson Mandela West Tower, 2nd Square Floor Maude Sandown Nelson Street Mandela Square Johannesburg Maude Street Sandown Johannesburg

www.beraca.co.za www.beraca.co.za

Coen Stokes Managing Partner Coen Stokes Managing Partner

T: +27 (0) 17 638 0165 F: +27 0166 T: +27 (0) (0) 17 17 638 638 0165 E: F: coen@beraca.co.za +27 (0) 17 638 0166 E: coen@beraca.co.za