ISSUE 12 by Beyond Publishing

Beyond

SEPT 2011 ISSUE 12 R29.95

sustainability quarterly

current affairs finance & business development & education travel & TOURISM TRADE & INVESTMENT politics

TOP ECOLOGICAL ISSUES IN SOUTH AFRICA WHAT SOUTH AFRICA CAN LEARN FROM THE DEVELOPED WORLD

SUSTAINABLE INFRASTRUCTURE IN A DEVELOPING COUNTRY

ECONOMIC OUTLOOK FOR SOUTH AFRICA

RUGBY WORLD CUP 2011 SOUTH AFRICA’s switch to digital technology

9 772074 05200 1

www.beyondpublishing.co.za

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CONTENTS 18

Editors note Charlene Heyburgh

FOREWORD Lebo Gunguluza

WORLD NEWS

SOUTH AFRICA NEWS

BY THE NUMBERS

INFRASTRUCTURE What South Africa can learn...

INFRASTRUCTURE Sustainable infrastructure...

INFRASTRUCTURE Measuring the success...

BEE Linking the development strategy

INFRASTRUCTURE Most successful projects...

INFRASTRUCTURE Was 2010 successful?

ECO Largest seawater desalination plant

BBBEE Is your company BBBEE compliant?

ECONOMY Is the dollar dead?

ECONOMY Are we out of the woods?

ECONOMY Economic outlook for South Africa

ECONOMY South Africa’s policies...

FINANCE Where should you be investing?

FINANCE How to invest in Retail Savings Bonds

ECO Ecologically-sound infrastructure

ECO Top ecological issues in South Africa

ECO Green tips for your office

ECO Carbon management

WOMAN OF SUBSTANCE Thembisa Jemsana

Distinguished Gentleman Elton Brown

POLITICAL SATIRE

FINANCE Why you can’t live without a budget

HUMAN CAPITAL INVESTMENT

SOCIAL FRANCHISING - EVERYONE WINS! â&#x20AC;&#x153;Sport has the power to change the world. It has the power to unite in a way that little else does. It speaks to youth in a language they understand. Sport can create hope where once there was only despair. It is more powerful than governments in breaking down racial barriers. It laughs in the face of all types of discrimination." - Nelson Mandela

Opportunities are available to own a Sport For All franchise which includes everything a passionate sports lover needs to operate a successful business.

Corporations can invest in Sport For All Franchising and earn valuable Enterprise Development points contributing to Broad Based Black Economic Empowerment.

To get in the game contact the SFA Team: 087 820 4030 | info@sportforall.co.za | www.sportforall.co.za

CONTENTS 80

JOB CREATION In a climate of Job loss

OTTC

Skills & Training Sustaining the infrastructure

economic development Department

Skills & Training Industries take charge

EDUCATION Bridging the rich-poor information gap

EDUCATION Graduate School of Public & Development Management, University of the Witwatersrand

100

TECHNOLOGY Technology’s role in infrastructure

102

TECHNOLOGY South Africa’s switch to digital technology

104

TECHNOLOGY The economic importance of design innovation

106

CAR PROFILE Subaru Forester S-Edition

108

PHONE REVIEW Samsung Galaxy S II

110

TECHNOLOGY REVIEWS

112

CSI Support development ethically

114

tourism Can you afford to travel?

116

HEALTH Avian flu, Foot and mouth, E.Coli

118

CATHSETA

120

ART From Russia with love

122

SPORT Rugby World Cup 2011

124

HATCH Structurally ahead of the pack

128

RESTAURANT REVIEW Sloppy Sam

130

BEYOND THE BEAT Are you caught by the economic crunch?

106

120

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EDITORS NOTE CREDITS Managing Director TB Mabecha Editor Charlene Heyburgh PROJECT MANAGER Jerome Dyson

ugby World Cup fever is upon us as we wait for the reigning champions, our beloved Springboks, to go into battle in New Zealand. Despite our disappointing performances during the Tri-Nations, we have no doubt in our minds that we will be victorious in the end and bring home, for the third time, the coveted Webb Ellis Cup. We have seen in the past how sport can inspire South Africans towards excitement and unity and, in these testing times for our country, with increased strike action, union-led opposition to the Walmart takeover of Massmart, increased job losses and the call for the nationalisation of mines, to name but a few, we so desperately need to find that feeling of unity. What our leaders and even ourselves have seemed to have forgotten is that South Africa’s greatest asset are its people. In this edition of Beyond, we take a look at infrastructure and how South Africa can learn from the developed world. Our country will need to do this in order to be taken seriously as an international contender. The definition of infrastructure often seems to be lost in translation. We should be looking at the infrastructure that is the support for social and economic projects in the bigger scheme of things. What we too often fail to realise is that, when our tempers flare, our actions paint South Africa as all “Doom and Gloom”, especially as an investment destination. By doing this, we are depriving our nation of much needed foreign investment which we need to grow our infrastructure to meet the needs of our growing economy and population. We also take a look at South Africa’s most successful projects where we celebrate our success stories in terms of infrastructure development projects such as the Coega Industrial Development Zone and the Cape Town International Convention Centre. On a lighter note, we give you tips on how to “go green” in your office. Our finance feature explains why you can’t live without a budget and if you are a car enthusiast, be sure to read our car profile on page 106. All this and so much more in this edition of Beyond. Finally, it is my pleasure to introduce myself, Charlene Heyburgh, as your new editor. Steve Rosenberg has moved on to new challenges and I’m sure you will join me in thanking him and wishing him the very best for the future. Enjoy the read! Charlene 12

Sales ExecutiveS Michael Keys Bernhard Kappelsberger Gaynor Thompson Shaun Davids Khayalethu Jacobs Thandolwethu Jevu Anthony Botha Emile Polman Traffic Controller Laurenda Hagglund Design Mark Rosenberg Accounts ExecutiveS Laurenda Hagglund, Kelly Cupido Office Administrator Carmen Puma

Beyond Publishing CK 2008/187319/23 25 Voortrekker Road, Unit 29 Goodwood, 7460 Tel: 021 592 5725, Fax: 021 592 5714 Email: beyondpublishing@telkomsa.net The opinions in Beyond are not necessarily those of the publisher. COPYRIGHT MABECHA PUBLICATIONS. All rights reserved. No part of this material may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without prior permission from the publisher.

FOREWORD Lebo Gunguluza related services is a catalyst for economic growth as well as direct and indirect jobcreation in South Africa. The provision of affordable, safe and reliable transportation of goods and people within our economy are critical to the development of our country. Challenges faced by transport systems in the various countries require specific responses in order to solve particular economic problems. In our context, the root cause of the current status of our transport system is the historic under-investment of our country in its transportation sector; this especially in the face of ageing infrastructure, growing urban population, global The R9 billion jobs fund will be key to trading and the expansion of the economy. Long-term finance new job-creation initiatives development planning and over a three-year period and will effective resource allocation be complemented by an amount of are critical for the realisation R10-billion set aside by the Industrial of the economic and social goals of our Transport Sector. Development Corporation The Local Government Business Network in association with Beyond do not service all areas. After decades of Publishing will be hosting municipalities, established urban planning and development, government departments and state owned which marginalised rural communities, enterprises in an intense two-day Summit to the current changing human settlement review, consult and address current issues patterns and economic challenges require facing government in further investments on planning that reconnects communities with Infrastructure development, the application each other; with economic opportunities of labour intensive technologies, methods and social amenities, to ensure that South and programmes, the second phase of the Africa develops sustainable communities. expanded public works programme, public To address this challenge, it requires an private partnerships as well as partnerships integrated and collective effort by all spheres with other government agencies to create of government - national, provincial and jobs and accelerate service delivery. This local as well as the private sector. summit will take place in November 2011 at In the global context, Weisbrod further the Cape Town Convention Centre in Cape indicated, “There is no doubt that Town Western Cape , themed “Building infrastructure in general and specifically Bridges for Job Creation” where senior transport infrastructure plays a role in the government and municipal officials, business economic development, as well as in social and civil society will network, engage and development of a country” (Weisbrod 1997, share ideas on the way forward. Chapman P et al 2002) . Transport and its During the last ten years, South African economy has recorded impressive expansion. However, that growth did not translate into more jobs. In 1994, ANC inherited a R800 billion a year economy. Today, South African economy turns R2.2-trillion a year, which represents an increase of 2, 5 times. This much larger economy has about the same number of people in formal employment as it did in the late 1980s. Many South Africans have been kept out of the economic mainstream because of gaps in infrastructure, lack of roads linking rural areas to markets and energy grids that

n this year’s state of the Nation Address (SoNA) President Jacob Zuma announced several initiatives to boost job creation, including the setting up of a R9-billion jobs fund, as he declared 2011 South Africa’s “year of job creation” through meaningful economic transformation and inclusive growth. In line with the New Growth Path, six priority areas are targeted in a bid to create more jobs, namely: infrastructure development, agriculture and rural development, mining and beneficiation, manufacturing, the “green” economy, and tourism. The R9-billion jobs fund will be key to finance new job-creation initiatives over a three-year period and will be complemented by an amount of R10-billion set aside by the Industrial Development Corporation (IDC) over the next five years for investment in projects with high job-creation potential. 14

WORLD NEWS

Russia to build first space hotel

Why Germany might let Europe fall

According to plans unveiled in Moscow, the space hotel, which would orbit 217 miles above ground, will have room for seven guests in four cabins, each with views of the Earth below. The Commercial Space Station, as it is officially called, is due to open in 2016. Guests who decide to take the journey into space will spend two days aboard a Soyuz rocket to get there. While the hotel will reportedly be more comfortable than the International Space Station (ISS), holidaymakers can still expect sealed showers and bad food. Tourists, who will be accompanied by crew, will eat food prepared on Earth that can be reheated in a microwave, the Daily Mail reports. Alcohol will also be prohibited. And there may be the odd uninvited guest: astronauts from the ISS could use the hotel as an emergency bolthole. Sergei Kostenko, head of Orbital Technologies, the firm that is building the hotel, said the hotel would be comfortable with large portholes to view the Earth below. “The hotel will be aimed at wealthy individuals and people working for private companies who want to do research in space.” However, a trip to the hotel will not come cheap. A fiveday stay will cost £350,000. So far, only 500 people have been into space

For the last year Europe have produced workable compromises to bail out weaker countries that failed. This strategy was normally quite successful. Europeans kept promising, “Yes, we are going to bail out the weaker countries with the greatest debt load, but we want some structural reforms in return. And as we get more structural reforms, we’ll bail them out more. And if the crisis seems more intense, we’ll bail them out again.” The Europeans repeatedly produced plans that were enough to satisfy the markets. Their hope was that at some point concerns would calm down and then while nobody notices they could allow a country like Greece to default. Their plan was a quiet reshuffling of debt. Today people are basically asking is: “Is Europe’s debt going to be centralized or not?” In other words, is Europe going to be willing to say, “All our debt is pooled together and theoretically, as a single entity, we’ll pay it back.” The key to this commitment is Germany. Germany is the only country that can pay. But Germany is increasingly reluctant to do so. What we’re seeing is the rise of a new, Germany, which in turn will lead to the unraveling of the old, highly unnatural structure of Europe.

ISRAELI ATTACK Eight Israelis were killed and 30 more wounded during a well-planned terror attack along the Israeli-Egyptian border. The attack was planned in the Gaza Strip by the Popular Resistance Committees and perpetrated by terrorists who crossed from Gaza into Sinai via smuggling tunnels. They then traveled some 200 kilometres to reach an area of the border protected only by a tattered wire fence, about 15 kilometres north of Eilat. Israeli forces killed five of the terrorists, and Egyptian soldiers reportedly killed two more. But the Israel Defence Forces estimates that 15 to 20 participated in the attack, meaning most escaped.

COMAIR LIMITED For more than 50 years, Comair Limited has provided a product and service of consistent value, reliability and professionalism. Comair also carries an average of 1.8 million customers per annum, locally and regionally with both British Airways and kulula.com. It is this reputation of quality, and passion for service that will ensure Comair Limited, continues to play a major role in the South African aviation industry.

BRITISH AIRWAYS In 1996, Comair Limited underwent some major changes when it became a franchise partner of British Airways. On the 27th of October 1996, British Airways (operated by Comair Limited) was established, and took on the colours and livery of British Airways mother brand. British Airways, operates domestic return flights from Johannesburg to Cape Town, Durban, Port Elizabeth and Nelspruit and between Cape Town, Durban and Port Elizabeth as well as regional flights from Johannesburg to Victoria Falls, Livingstone, Harare, Windhoek, Mauritius, Gaborone and Maputo.

COMAIR TRAINING CENTRE

The Comair Training Centre (CTC) has set a benchmark in the South African airline operations and training industry. It is one of only a few highly sophisticated training centres on the African continent that offers the most comprehensive training solutions to local and International flight deck crew, cabin crew and flight operations personnel.

SLOW LOUNGES

The SLOW lounge is an unrivalled business lounge, it’s a peaceful haven to work, dine and unwind in comfort. Business facilities and wireless internet connection, help’s maximise time more efficiently. A selection of fine wines and a delicious range of food are also on offer. There are three SLOW lounges based at the domestic terminals at OR Tambo in Johannesburg, Cape Town International and Durban King Shaka International airports. The award winning SLOW lounges are exclusively for British Airways Executive Club, First National Bank and RMB Private Bank card holders.

As a franchise partner of British Airways and a member of the oneworldtm alliance, British Airways offers seamless connections to the international route network as well.

kulula.com Right from the get-go, kulula.com has proven to be an innovative and robust travel partner, bringing not only the love of flying to the people, but other travel related products like car hire, accommodation, chauffeur service, adventure experiences and even the most generous credit card. kulula literally means ‘easily’ in Zulu, and it’s catchy and unique, with a lyrical name which people don’t easily forget. So they’re all about being easy, easy to book, easy to fly … easy in everything. kulula.com currently flies to all the major destinations within South Africa.

SOUTH AFRICA NEWS Tollink awarded R110m N1 contract Tollink South Africa has won a R110 million contract to supply and maintain toll plazas in Limpopo, its Austrian owner Efkon Group said, “the contract spans eight years and includes the full upgrade of the N1 north route (57 lanes) toll plazas as well as the maintenance and support of the system,” Efkon said in a statement. The entire SA National Roads Agency Limited project, worth around R600 million, was awarded to TolconLehumo as the operator, Efkon said. Tollink would be the preferred service provider for the maintenance component of the contract, valued at R110 million.

COPPER WIRE THEFT

ROAD ACCIDENTS 13,768 people died in accidents on South African roads in 2009. This is according to data from the Road Traffic Management Corporation provided in a reply to a parliamentary question by the Minister of Transport. This is slightly down from the 13,873 recorded road accident fatalities in 2008. KwaZulu Natal was the province with the highest number of deaths in 2009 (2,855), followed by Gauteng (2,485), Mpumalanga (1,764) and the Eastern Cape (1,543). There were 10,343 road accident fatalities in 2010 up until September - the last month for which statistics were available. See graph and tables below. By comparison 2,222 people were killed in road accidents in the United Kingdom in 2009, and 4,152 in Germany the same year. www.politicsweb.co.za 18

Energy Minister Dipuo Peters wants copper theft to be classified as economic sabotage. Peters told media at the government’s Infrastructure Development Cluster briefing today that her department had written to the Justice Minister Jeff Radebe to suggest that legislation be changed so that cable theft can be classified as a serious offence. “At the moment cable theft is treated as petty theft,” she said. “A person who steals the copper is a murderer, a thief and a saboteur.” The crime, she said, was economic sabotage which disrupted energy, transport and telecommunications service delivery. Her comments come after stolen cables disrupted the Gautrain for the second time in two weeks on Tuesday between the Hatfield, Pretoria and Centurion stations. Energy department deputy director-general Ompi Aphane said cable theft had cost the country around R100 million last year, but that the indirect costs to the economy were far higher. In a statement the cluster said eight people were arrested for stealing copper cable from the ERPM mine in Boksburg on Wednesday. The Bombela Concession Company has asked the government to help fight copper theft. - Sapa

DA wants 8% growth to create jobs At a press conference presented by DA leader Helen Zille, along with party federal chairperson Wilmot James, the official opposition announced that it would launch a policy project that would identify what South Africa needed to do in order to gain such an economic growth rate. This policy project would conclude in August next year in order for the party to position itself ahead of the 2014 general elections. James acknowledged that the 8% growth rate figure was aspirational and that he would be very glad if South Africa’s economy achieved a 6% growth rate. “We need an economic growth rate such as that to ensure three generations of prosperity,” he said.

BY THE NUMBERS 92,000 31 ST

the rank in the Economist Intelligence Unit’s Survey of Democratic Freedom, South Africa ranks 31st out of 184 countries

30,000

schools in South Africa made up of 7,000 secondary and 23,000 primary

24,000

the amount of schools in South Africa with electricity today

1 ST

NUMBER 1

killed in a fresh wave of gang warfare and political killing in Pakistan

Nigeria has launched two earth observation satellites used to monitor weather

the amount of schools in South Africa with electricity 17 years ago

people massacred by Anders Behring Breivik in attacks that traumatized the nation of Norway

active cell phones in South Africa with our population of 49 million, ranking in the top five globally in terms of cell phone coverage

Angry Birds is the number one paying iphone game

THOUSANDS

people were arrested in the Philippines for trafficking in some of the world’s rarest turtles

33%

Exxaro resources profit climbs 33% on coal, iron-ore gains

of Pilgrims flock to Madrid for the Pope’s arrival in Spain in celebration of World Youth Day

people have been killed in air strikes that the Israeli military has carried out over the Gaza Strip, targeting those it blamed for a series of deadly attacks in southern Israel

16.5 BILLION 20

12,000

South Africa is the first, and to date only, country to build nuclear weapons and then voluntarily dismantle its entire nuclear weapons program

45 MILLION 6

the amount in rands of municipal bins damaged by striking municipal workers in the CBD alone on Tuesday 16 September 2011

12.5 BILLION

Googles bid to buy Motorola

rand is what Walmart paid for a controlling stake in Massmart in a transaction that was approved by the Competition Tribunal on May 31 on the condition that no jobs are cut for two years

YOUR

NATIONAL PRINT PARTNER

NATIONAL PRESENCE • 10 printing plants across South Africa allows high quality printing of large volumes under tight deadlines • Product can be printed where it suits the client best from a distribution and cost perspective • Reduced transport requirements minimise carbon footprint

PAARL MEDIA ACADEMY OF PRINT Paarl Media has heeded the government’s call in the President’s State of the Nation address for partnerships with industry to avail our capacity for developing the skills of our people. Skills development is central to job creation and productivity, empowering people for meaningful participation in society.

LOCAL PRODUCTION, INTERNATIONAL STANDARDS • Printing in South Africa with Paarl Media ensures South Africa beneﬁts from investment, job creation and skills development • Implementation of world class technology and systems delivers products printed at an international standard • • • •

Following a comprehensive study of international training programmes, Paarl Media has taken the lead in the development of a world class training facility, the Paarl Media Academy. It is set to raise the skills levels in the industry.

LEVEL 4 BEE ACCREDITATION Level 4 BEE accreditation and value added service provider status 125% of clients’ procurement spend applies towards their own BEE scorecards Broad based BEE partners, LoveLife’s Kurisani Investments, and Naspers’ Welkom Yizani investment company Over 1 500 jobs created through successful enterprise development initiatives

PROVIDING CRITICAL SKILLS • Existing outdated trade training curricula replaced by new apprenticeship programmes, developed to international standards • Apprentices earn a wage while they learn on the 2 year theoretical and practical training programme • The Academy oﬀers Paarl Media employees technical, skills and leadership courses • Drives personal excellence through development and performance management • Additional value added courses oﬀered to clients to facilitate design and preparation of material for print

EXTENSIVE CAPABILITY • Proven experience with print, storage, picking, packing and distribution of printed material • Full range of print services offer most efficient production of different formats • Capacity to handle very large volume requirements • Extensive bindery service offered • Established national distribution network RESPONSIBLE PRINTING • First South African printer to receive FSC™ (Forest Stewardship Council) CoC (Chain of Custody) certification. This serves as an independent international verification that the products printed can be traced back from their point of origin to responsible well managed forestry, controlled and recycled sources • Industry leader in environmentally sustainable printing practices

CERTIFIED QUALIFICATION • Academy is an Institute of Sectoral and Occupational Excellence (ISOE) • Accredited training provider with FP&M SETA • International accreditation by City & Guilds, UK’s leading vocational awarding body

Limpopo

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INFRASTRUCTURE

What South Africa can learn from the developed world Writer Kendal Brown

ell, we’ll all agree that no doubt that South Africa can learn a lot from the developed world and an article like this will only scratch the surface. Instead of heading in the usual direction of America and Europe though, what about looking eastwards? From middle to far east there are plenty of infrastructures that if perhaps studied, imitated or adapted, may well benefit South African infrastructures. One that immediately springs to mind is the area of unemployment. Strong infrastructure here would mean an enormous amount to our economy given that the growing unemployed are being massively bolstered by an ever larger army of youthful job seekers. A positive approach from India With a population of just under 50 million unemployed people, the joblessness situation pales into insignificance when one considers what it must be like in India where the population is one billion! Yet, believe it or not ( to quote the famous Mr. Ripley) South Africa may well be able to take a leaf or two (or more) from India’s job creation manual. Here’s why. A while back Zwelinzima Vavi pointed to a ground breaking Indian model, which has gone a long way in alleviating unemployment in what is the second largest population in the world. We have approximately six million unemployed people in South Africa facing a grim future if something is not done really quickly to alleviate the situation. Certainly the government has put some serious funding

in place of late but the bugbear is always rollout. This is what India did and it may well be worth imitating with some adaptations for local conditions. Back in 2005, India came up with a scheme to give every rural household the right to 100 days of employment (manual labour) a year at a minimum wage. With over 55 million participating (yes, more than our entire population!), it is one of the largest anti-poverty programmes ever. As such it has achieved reduced hunger, raised selfesteem, advanced women and strengthened civil society. The scheme was introduced through the Mahatma Gandhi National Rural Employment Guarantee Act, a job guarantee scheme which was enacted by legislation on August 25, 2005. So here’s something that legally guarantees 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual labour at a legally binding minimum wage of approximately R20 a day. Now before you say who can live on R20 a day (and quite rightly so), this is one of the adaptations that would need to be made to offer a realistic wage that meets local needs. An interesting aim of this legislation was to improve the purchasing power of the rural people, primarily semi or unskilled people, whether or not they are below the poverty line. So with a bit more money going around locally a lot more people will enjoy an improved cash flow. Multiple benefits all round! Obviously a lot of work will be needed to administer the infrastructure for

such a scheme but if India can do it so can South Africa. After all, we organised a Soccer World Cup didn’t we?

and more pressingly , when are we going to implement what we may learn? Captains of industry to your posts!

The Chinese manufacturing legend Moving further east we can take a look at China’s manufacturing infrastructure for another lesson. Back in May at the World Economic Forum Africa, Trade and Industry Minister Rob Davies said that Africa needed to develop its industrial capacity, and South Africa and the rest of the continent could learn from China on how to develop manufacturing capacity. He added “It is key that South Africa and Africa develop their manufacturing capacity because China’s industrialisation was fuelled by its deliberate intervention to support its manufacturing industries. Africa needs to defend the space to develop its industrial capacity in general and within the World Trade Organisation.” He also reiterated that infrastructure development be focused on creating conditions in Africa that promoted intra-Africa trade and created an internal market consistent with the long-term economic development aims of South Africa and Africa. So then, just what are we going to learn from the Chinese industrial infrastructure

Innovative Israelis Back to the middle east and the always innovative Israelis. At the 13th annual Power & Electricity World Africa Conference and Exhibition at the Sandton Convention Centre back in March 2011 Sharon Kedmi, director-general of Israel’s Ministry of Industry, Trade and Labour said, “South Africa is currently in the same position that Israel was in three or four years ago with regards to the government’s preparation of new regulations and tariffs. South Africa can use the experience that Israel has gained in this area to make better decisions. And rather than reinventing the wheel, the government should look at what Israel had to offer. “There must be a positive, almost aggressive endeavour to implement the necessary REFIT programmes, and companies must be incentivised to participate, both locally and from abroad, with government paying premiums for new industry. For example, the photovoltaic (PV) capacity – particularly in the Eastern Cape – should be increased substantially, and government should help to

provide the infrastructure to achieve this.” In February 2010, the Ministry of National Infrastructures published a policy paper describing the steps towards the full implementation of renewable energies in Israel. An economic allocation model distinguishes between the different technologies and sets different capacities according to the economic indicators. For instance, solar water heaters should be mandatory in SA. Kedmi went on to say “Solar water heaters can reduce electricity consumption significantly – this needs to be implemented and government has to regulate this implementation. Not only will this save energy, but it will also grow the economy and provide employment. Regulation is the first step – after regulation, the details can be defined and determined.” Innovative infrastructure So there, not even a mark, let alone scratch, on the surface of what we can learn about infrastructure, but maybe it will get the creative thinking juices flowing in government and elsewhere and lead to the creation of the sort of infrastructures needed to ensure rapid implementation and transformation within critical areas.

INFRASTRUCTURE

Sustainable infrastructure in a developing country Writer Ryan Jared Ali

he term ‘sustainable’ seems to be all over the business world but what does ‘sustainable’ mean? Determining what is sustainable infrastructure needs to be the first goal. The statement means various things to different people. Does it just mean taking care of the environment? Does it mean focusing on the youth building schools? Or does it mean creating a safe living area for a society? The answer is yes to all the above and more. Let us try and determine the criterion for a sustainable infrastructure by looking at various examples. A public space is built in an area where there is a high crime rate and poor lighting at night. Will the public space change the behaviours of the criminal element in the area? A township if provided with electricity to an area where there is a high rate of illegal connections. Will the new electrical infrastructure change the attitude of people from the theft of electricity to purchasers of electricity? The answers to these questions begin to expose how far reaching the development of sustainable infrastructure needs to stretch. What factors need to be taken into consideration? The most basic of which is can the development afford planned and unplanned maintenance over the developments life cycle? What is the social impact of the development, will it create alienation between social groups? How will safety be affected and how will behaviours be affected of people interacting? The answer to the challenge seems to be a holistic approach. At the core of sustainable infrastructure is a need to a clear strategy. In that strategy the purpose of the type of society that is being developed needs to be clear. Infrastructure are mere objects that we

interact with however they affect us down to an emotional level. It is a strong form of communication between government and the people that inhabit the space. A simple example of which is what we find in South Africa. In the RDP housing projects across South Africa bricks and mortar are used as the primary material however there are many

In the RDP housing projects across South Africa, bricks and mortar are used as the primary material, however there are many alternatives which could better serve the communities they intend to uplift alternatives which could better serve the communities they intend to uplift. The reason behind the use of the somewhat primitive material for bulk infrastructure construction, people have an innate belief that “houses are only houses if they are built with brick and mortar.” Alternatives are deemed substandard which is not exactly true. So we find another balancing act with sustainable developments, the communities on which the infrastructure will be served needs to be considered in terms of their expectations at a basic level. This leads to the most important aspect of infrastructure development, education. The gap between what is most economically viable in terms of development and the expectations of the public can be narrowed and most effectively deployed with the publics buy in. Through communication with the public who ultimately will interact with

the developments on a daily basis. Now that it is clearer what sustainable developments need to be in order to be sustainable in reality it becomes easier to map the process for developments. There are four major infrastructure components that combined cater to the needs of our society. Water, Electricity, Public Spaces, Transport and Waste disposal. Focusing on the problem in an African context the problem becomes ever more complex, but with great potential to solve the problem due to the relative large amount of development taking place at one time. This enables the holistic approach to effectively take place. What is at the root cause of degradation of the surrounding environments? There are a multitude of elements that contribute. A definite contributor would be those living in a sub standard quality of life. How can one give someone a house with water, electricity and not give them the means to maintaining it? There is no shortcut on the road to developing a sustainable society. Imbalances quickly lead to situations of dereliction. In poverty stricken areas how can those who have the means and the time to reason on matters that would never even occur to those just trying to provide a basic meal and shelter for their families. Sensitivity needs to be had by those on the outside to the conditions on the environment and prioritize humanity. This does not mean blindly serving the needs of humanity at the detriment to the environment. That is not a good long term plan as the environment ultimately affects our social behaviours. Let us look then at sustainable development of society in a clear holistic fashion where problems are solved in isolation and inadvertently induce others. 27

INFRASTRUCTURE

Measuring the success of infrastructure development Writer Natasha Braaf

ccording to answers.com, infrastructure refers to an underlying base or foundation for an organisation or system. The basic facilities, services, and installations needed for the functioning of a community or society and can be akined to the human body requiring a strong and flawless sub-system, dependent on proper inflows, outflows and a capable and ready maintenance structure. It needs a solid foundation, impeccable planning and leadership beyond reproach. The reality is that infrastructure development is an important part of economic development in the sense that its elements affects the way communities live and the way enterprises compete locally and globally. South África has made huge strides since 1994. Despite these achievements, significant levels of poverty, unemployment and inequality still persists, while the “better life for all” remains an unattainable outcome for huge sectors of our communities. It became clear that while government has succesfully improved access to services and increased service-delivery expenditure, it was the way we did things that had to change in order to improve the lives of the citizens. The 12 Outcomes In February 2010, through extensive consultation with various stakeholders, government has drawn up 12 performance outcomes as a new initiative designed to improve performance and bring about more focused delivery. Its aim is to ensure that

state resources are used productively while more focused attention will be given to critical areas of need as determined by the electoral mandate. These outcomes include improved education, health, safety, employment, skills upliftment, hunger elimination, environment, economic growth, sustainable rural communities, housing, an accountable government system and of course - Outcome 6 - the matter at hand, “An efficient , competitive and responsive economic infrastructure network”. The minister in the presidency responsible for performance monitoring and evaluation, Mr Collins Chabane, maintains that the various priority outcomes will be measured to see whether outcomes are being achieved: “The delivery forums will develop detailed service delivery agreements that will indicate each party’s contribution to achieving the outputs and outcomes with typical information on budget contribution, implementation timelines and personnel allocation.” Source: http://www.thepresidency.gov.za/ dpme/docs/guideline Outcome 6 On 29 October 2010, the Infrastructure Development Cluster Ministers signed their Delivery Agreement with President Zuma. In his State of the Nation address, President Zuma referred to the expansion of digital services, water, electricity and transport infrastructure as essential to drive economic growth and provide jobs for all our people. “Through Outcome 6 of the 12 Outcomes of government, we seek to devise corrective

measures and interventions to enable government to ensure maximum impact of infrastructure investment in economic growth”. National Planning Commission (NPC) In May last year, President Zuma appointed 25 private citizens to work with Minister Trevor Manual to develop a plan. This gave rise to the NPC and their mandate: “To take a broad, cross-cutting, independent and critical view of SA, to help define the SA we seek to achieve in 20 years time and to map out a path to achieve those objectives.” They will put forward solid research, sound evidence and clear recommendations for government. A consultative process with the public was launched during June 2011, while a development plan will be presented for the Cabinet’s consideration on II November 2011. The President says: “The establishment of the National Planning Commission is our promise to the people of SA that we are building a state that will grow the economy, reduce poverty and improve the quality of life of our citizens.”* Through consultation, transparency and accountability, we take note of the Outcome 6 Delivery Agreement and the mandate of the NPC. We know that the infrastructure budget increased from R784 to R846 billion over the medium-term expenditure period and.... we will be watching. *Source: Politicsweb - Our diagnosis of SA`s problems - Trevor Manuel

BEE

Linking the development strategy Writer Dionne Kerr

he debate continues as to the validity of BEE as a mechanism to truly achieve Transformation and ongoing scepticism around the policy’s strengths as a way in which to achieve economic growth. The average middle to lower income black South African feels that BEE has failed to provide access to wealth and opportunity. The average middle to lower income white South African blames BEE for their inability to find work in this tough economy. The average entrepreneur is focused on survival and has no time to understand the broad-based model of seven elements of developmental participation in South Africa’s growth strategy. The youth of South Africa are desperate to have a sense of purpose and remove the barriers to opportunity. Somehow BEE gets blamed by all parties for some or all of this. However South Africa has a strong, integrated strategy for development. The ASGISA programme saw a commitment of more than R400billion (expenditure was almost double) in infrastructure development. These projects started in 2004 well in advance of rest of the world who announced infrastructure programmes in response to the economic downturn as a means for economic recovery. ASGISA demands focus on Job creation and local, economic development. If you want to benefit commercially from these projects, then ensure that the local area benefits developmentally. In this way the intent is to ensure that the legacy of infrastructure investment is more than just a building, road, power station or rail network. The legacy issue is then skills, entrepreneurs and local development. The Industrial Policy Action Plan (II) implemented by the DTI suggests a limit

on Capex expenditure to 30% in order to encourage local supply, manufacture and production as a means of job creation. The New Growth Path and the related departments are on board. The Minister of Finance confirmed that the allocation of funds for Development, loan and grant funding would increase and all of these policies are specifically geared around the principle of partnership between Government, community and business in order to stimulate the economy, develop a platform for job creation and drive sustainable development. With the very best intentions, and these remarkable strategies, are we truly capturing the opportunities in South Africa for job creation, enterprise development and sustainability? The pivotal factor will be our ability to implement. This starts with the Leadership. Once the strategy is defined, do we have the right people in the right positions with the passion, the energy and the enthusiasm who want to make a difference in the lives of their people? Do people truly understand the power they hold to empower other people and change lives? The fundamental success of BEE lies in its prioritisation of measurement and targets. The model for building skills, setting targets and measuring investment as well as constant evaluation of the impact are, in principle, sound theories. Our development strategies similarly need to be broken down into plans that can be actioned. If we can teach SMME, employee and rural communities to sustain themselves, then we remove the culture of dependence that sees public sentiment shift so swiftly every time we have an election. Every community in South Africa should take back the control over their lives and be able to employ themselves, educate themselves, feed themselves and

sustain themselves. Our policies towards investment need to encourage international investors to participate providing they subscribe to the principle that South Africa and South Africans should benefit from their commercial activity. Business creates jobs, and taxes which assist with development. Changing the way we slice up a pie and distributing the pie doesn’t change the fact that the pie is not big enough to sustain a growing population and the priority needs to be expanding the growth opportunities to meet the demands of this population. It is Government’s role to create an environment for us as South Africans to succeed. The strategies, the access to funding and the policies do that. The inconsistent messaging and the ongoing issues around corruption and manipulation derail these efforts. With the right environment to succeed, it is the role of Youth organisations to work with business and government to find solutions. It is the role of business chambers and SMME funders to collaborate with all stakeholders to find solutions for business growth. It is the role of the Unions, the employment industry, business and Government to identify ways to increase the number of jobs. Solution-seeking should be the priority, not problem-finding. This simply distracts people from the activities that should be aimed at driving solutions. If there is one thing we can learn from the BEE model. Set targets. Identify a plan, with targets and see it through. With targets, underpin this with clear, consistent policy, be broad-based and inclusive in the approach, review regularly, and insist on minimum performance. Engage everyone, communicate frequently and let’s celebrate our quick wins so that we remain focused on why this is so important. This is how we will achieve our development goals.

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INFRASTRUCTURE

South Africa’s most successful projects

have been asked to identify some success stories in terms of Infrastructure Development projects and within the framework of the limited space allocation, I have opted to look at projects other than the obvious 2010 world cup wins.

The Coega Industrial Development Zone The 11,000ha Coega, near Port Elizabeth, is South Africa’s largest IDZ. Construction started in 2005 and by the end of 2007, the Coega Development Corporation reported a sharp increase in the number of people employed on site. The intake of labour brought the total number of construction jobs created since the Coega Project started to 19,940. The initiative is a multi-billion dollar industrial development complex customized for heavy, medium and light industries, adjacent to a deep water port, Port of Ngqura. The Coega Development Corporation (CDC) is the developer and operator of the Coega IDZ and is responsible for the land side infrastructure, while the deep-water port facility, Port of Ngqura, is developed by the Transnet National Ports Authority. The Coega Development Corporation provides a one-stop investment service to assist investors with all aspects of setting up business in the zone and has to date, signed investments worth approximately R30 billion, with a portfolio of investments undergoing feasibility some R140 billion. This project subscribes to South Africa’s vision of becoming a manufacturing centre of the world and has been declared as a lead project in SA. REA VAYA – “We are going” Rea Vaya is the Johannesburg Bus Rapid Transport system and is a major contribution towards Johannesburg’s transformation into a World Class African City. This integrated transport system is one of the first of its kind in Africa. Since inception in August 2009, Rea Vaya has transported approximately 8 million commuters. When the service was launched

in August 2009, only 300000 people used the bus service to and from work. This has grown to more than a million. Mr Gabu Tugwana, City of Joburg communications director, said the system turns over more than R6-million a month in passenger fares, making it a veritable cash cow for the City. When the service was initially launched, it was plagued by violent protests at the hand of taxi drivers who feared that it was going to take away their livelihood. These issues were soon resolved, so much so that the BRT system was officially handed over to Piotrans - a company of former taxi owners - for them to run as part of the integration and efficiencies introduced to provide better public transport services for commuters. This, along with the other BRT – systems across the country and the successful Gautrain, sets SA well on her way to establishing a public transport infrastructure, which gives credence to the R4 billion commitments for 2010/11. The Cape Catalyst Economic Infrastructure In an effort to obtain first hand input from the source, I approached the Department of Economic Development and Tourism and scored an invitation to the offices of Minister Allan Winde, where I met with Tammy Evans, Spokesperson for MEC Winde and Jo-ann Jonhston, Chief Director of Strategic Development. These ladies generously shared information with me and promptly pointed me towards one of our biggest success stories, namely the Cape Town International Convention Centre (CTICC) and its significant impact on Tourism growth in the region. The CTICC cost a total of R582 million to build, with funding provided by: The City of Cape Town R284 million, The Provincial Government of the Western Cape R142 million, SunWest International R140 million, Convenco R16 million The 2008/2009 financial year, “the seventh annual study of the economic contribution of the convention centre revealed that R2.3 billion was contributed to the South African

Writer Natasha Braaf

GDP and R828 million to the Western Cape’s Gross Geographic Product. Furthermore, as a direct and indirect result of the existence and operation of the CTICC, 3242 people were employed in the Western Cape and a further 4168 were employed indirectly across the country.” CTICC Annual Report. This from the initial investment costs of R582 million, not too shabby, I’d say. In short, the Cape Catalyst encompasses a range of projects of which the following five are currently in progress and rumoured to catapult the City of Cape Town into a leader in various fronts. Telecommunications Infrastructure Strategic Framework & Implementation Plan. To increase our connectivity with the world. In her State of the Province Address, premier Helen Zille quoted a World Bank study that found that for every 10 per cent increase in broadband penetration, developing economies grow by 1.38 per cent. East City Design Initiative (Ecdi) Facilitating the sharing of new ideas and innovations, this will boost the Western Cape’s already world-class creative industries and attract Investment and innovative people to the region. Port Precinct Redevelopment. The formulation of a 30-year plan to redevelop the port of Cape Town. Cape Health Technology Park. A partnership between various public players (national and local) that have a vested interest in the growth in biotech and health innovation – across academia and private enterprise. The Centre represents the infrastructure deemed necessary to stimulate heightened activity in biotech and health innovation. Saldanha Idz. An Industrial Development Zone linked to an international port airport, which contains a controlled customs secured area in the Saldanha Bay area. Development of these projects is solidly underway and with the verve and enthusiasm that radiated from the key-players I obtained my information from, we best watch this space!

INFRASTRUCTURE

Was 2010 successful? Writer Reagan C Adams

he 2010 FIFA World Cup is known to be one of the biggest infrastructure investment projects South Africa has seen. It has been a catalyst to unlocking public funds and accelerating the development of various infrastructural projects in this country. The effects of a lasting legacy, to benefit generations to come, was the main objective for the South African government. Recently memories of this showpiece may have resonated with you, as we celebrated its birthday. Government will have invested more than R400 billion in the country’s infrastructure, between 2006 and 2010. Two key infrastructural components that initially received R17.4 billion were the building of stadia and upgrades to transport and transport infrastructure. This allocation increased to R19,4 billion to meet further demands. A major focus was building and upgrading the 10 world-class sporting facilities in the hosting cities. These stadia are; Soccer City, Ellis Park Stadium, Cape Town Stadium, Moses Mabhida Stadium, Nelson Mandela Stadium, Loftus Versfeld Stadium, Royal Bafokeng Stadium, Free State Stadium, Mbombela Stadium and Peter Mokaba Stadium. Our sporting venues, as many others, have sought to become multifunctional by hosting other events. The Moses Mabhida Stadium in Durban has

attractions like adventure walk and sky car. Soccer City with its distinctly African flavour because of its calabash design, has hosted Neil Diamond in concert in October 2010. The mother city’s creation, Cape Town Stadium has seen various events since the World Cup. Come December 2011 it will host the Cape Town Bike Festival. Recent concerns about stadiums being underutilised are yet to be established, as we have fared well in utilising these facilities. Public transport and related infrastructure was identified by the South African government as key to this legacy project. The project included rail upgrades, road upgrades, bus-rapid transport (BRT) systems and inner-city mobility systems. South Africans have experienced detours and congestion on our roads as preparations were on the way to accommodate the multitudes visiting our shores. Some of the upgrades were meant to be completed before 11 June 2010 and others were not. The Integrated Rapid Transit (IRT) in Cape Town, is one such example and would have transported its first commuters by the end of 2010. The Gautrain Rapid Rail Link was not earmarked for the World Cup, but the completion of the OR Tambo International Airport and Sandton link was fast-tracked for World Cup fans. Other World Cup-related projects to which national government has contributed were broadcast and telecommunications, event

operations, safety and security, ports of entry infrastructure, immigration support and communications, hosting, legacy and culture programmes. The impact of the World Cup has superseded 2011 and has made a dent in some of South Africa’s Millennium Development Goals for 2014, set by the United Nations in 2000. By 2010, since SA heeded to the call it has seen an average growth of at least 6%. A major achievement considering an average growth rate of 1% per year, since 1994 to 2004. Challenges there are and one of these are the maintenance of these facilities. However, it is pleasing that Cape Town Stadium has entered into a franchise agreement with a French company to generate revenue over time. This will assist in maintaining its structure and services. The success and lasting legacy SA Government wanted to ensure through the World Cup, was that it will contribute to the country’s growth and development goals. Also, to make sure that hosting this tournament bring opportunities that can be accessed by all South Africans, in a way that will also empower those who were systematically excluded from participation in the economy in previous years. It is valuable to understand that the tangible success will be experienced in time.

ECO

Largest seawater desalination plant commissioned Writer Robin Hayes, SSI Engineers & Environmental Consultants Currently undergoing commissioning at Mossel Bay is the country’s largest seawater desalination plant, a 15Mℓ/day unit serving the Municipality of Mossel Bay and the adjacent PetroSA refinery. Due to the worst drought in 150 years, the Municipality was compelled to turn to ‘new’, innovative water sources to augment the rapidly diminishing existing resources. Work commenced on the 15 Mℓ/day seawater desalination project – the largest in South Africa –in May 2010, with a target completion date of November 2010. This very condensed timeline necessitated execution of the design, tender and construction stages largely in parallel to ensure the earliest possible completion, in order to avert an impending catastrophe. SSI headed a project team that had to deliver a R200-million project in the space of 8 months, from appointment, through procurement, design and construction. The design and construction stages had to be executed largely in parallel to meet the extremely tight deadline. The project involved four complex sub-projects, each under separate contracts, by independent consultants and contractors. The project was further complicated by the limited space available for the plant and the sensitive environment of the works. Public/Private Partnership The project was commissioned by the Mossel Bay Municipality, but jointly funded by PetroSA, a large industrial water consumer. This public/private initiative was supported by central government through the allocation of further funding on account of the project’s 38

emergency status and strategic importance. The project entailed hands-on interaction between the Municipality and PetroSA to ensure the objectives of the project were met in accordance with the requirements of both parties. PetroSA provided a dedicated team of specialists to work in conjunction with Municipality’s technical team and consultants. Complexity & Coordination The overall project comprised four ‘subprojects’, namely seawater intake and brine discharge works, reverse osmosis desalination plant, bulk electricity augmentation and permeate water supply pump station and rising main. The subprojects were commissioned and executed in parallel as separate contracts, by different consultants and contractors. This required detailed planning, close cooperation and intense, regular coordination to ensure timelines and interfaces were achieved. Innovative and Environmentally Conscious Design The marine works contract comprised large diameter welded HDPE intake and brine discharge pipelines, fitted with bespoke precast concrete weight collars. The pipelines were towed into position by a tug and sunk by filling with water. A coffer dam had to be constructed through the surf zone to facilitate towing of the pipelines out to sea. The RO plant itself was sited behind the primary dune above the beach to minimize its visual impact. The plant had to be constructed within a very confined site, which required careful planning and design

to ensure optimal use of available space. The vast majority of components had to be manufactured from scratch (e.g. filters) due to their size or imported from abroad, which made the delivery to programme particularly challenging. The following components had to be constructed within an area of 1,150m2 (36m x 32m). • Medium to large diameter HDPE pipelines aboveground (500mm dia): 1,500m- 2,000m. Possibly the only large scale HDPE pipe plant of its kind in Africa. • 6 x Multi-media filters: 4.5m dia x 12m long, weighing 300t per filter. Possibly the largest water treatment filters in Africa. • 6 x RO skids (each 2.5Mℓ/d capacity). The permeate water supply pump station and rising main entailed approximately 2,3km of large diameter pipeline (500mm dia), complicated by construction within a heavily industrialized area, crossing of numerous main roads, including national road, utilizing pipe ramming techniques. Due to the fast-track nature of the project, the normal EIA process could not be followed. Therefore to ensure compliance with environmental legislation and regulations, environmental specialists and the regulatory body were consulted early on to provide input into the design. The beach and dune areas disturbed during construction will be re-profiled and planted with indigenous species as part of the rehabilitation phase of the project. www.ssi-dhv.com

Is your company BBBEE compliant?

t has been just over 4 years since the Broad-Based Black Economic Empowerment Act 53 of 2003 was gazetted. We have seen many companies embracing the spirit of these codes, however we are still far from the desired results. There is no doubt that B-BBEE is here to stay and companies who wish to be competitive, will need to comply with the requirements of the scorecards. There are elements of the scorecard which will require long term planning to change, however there are sufficient elements in the scorecard that can be addressed in the short term. A companyâ&#x20AC;&#x2122;s compliance and status is measured in terms of the following seven elements: Ownership (Who owns the business); Management Control (Who controls the business); Employment equity (Who 40

works in the business); Skills development (Training for black employees); Preferential procurement (Who does the business purchase from); Enterprise development (What efforts are made to develop small enterprises); Socio economic development (What contributions does your business make for social causes) It should be noted that Black economic empowerment is a process. Nobody is expecting every enterprise in South Africa to be BBBEE compliant immediately, but government does expect every enterprise to commence implementation of BBBEE with a view to becoming compliant sooner rather than later. Ignorance to the BBBEE Codes will ultimately have an impact on the sustainability of your business. According to the DTI BBBEE certificates for enterprises with turnover greater than R5 million per

annum, must carry the SANAS logo to ensure that you have been verified by an accredited verification agent. INTEGRA SCORES is a SANAS accredited BBBEE Verification Agency as well as a full member of ABVA (Association of BEE Verification Agencies). Having been involved with BBBEE since the inception of the Draft BBBEE Codes of Good Practice in December 2004, INTEGRA SCORES is well versed in the mechanics of the gazetted Codes of Good Practice, and also understands the background and rationale that inspire their creation. We offer verification services to have your company verified, or consulting services to assist your company with either preparing for a verification or improving on your current score. We may be contacted on 0860 233 669 or www.integrascores.co.za

Integra SCORES IS A SANAS ACCREDITED BEE VERIFICATION AGENCY

MAKING “CENTS” OF BEE Integra Scores BEE Verification offers clients a comprehensive BEE verification and certification service: • BEE Compliance Audits, Evaluations and Verifications • BEE Scorecards and Scenario Planning • BEE Consulting and Strategy Planning • Supplier Assessment and Verification • Internal Training • BEE Status Tracker software controls complex scorecard information Our professional, highly trained consultants provide personal and customised attention to ensure your company receives the highest BEE rating for which it qualifies. We operate nationally in Johannesburg, Cape Town, Durban and Port Elizabeth.

CONTACT Pascal Lagesse or Joelle Naidoo Telephone 0860 233 669 Email joelle@iquad.co.za

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ECONOMY

Is the dollar dead? Writer Zak King get more Rand for the Dollars you own. So swop those Dollars for Rand and hey presto you have made a profit in the exchange... in Rands. Whether the profit you have made is higher than the normal interest you would have received at local Banks is a different story. Herein lies the skill of Forex investors who buy and sell currency just ahead of the trends. It is the age old story of investments everywhere. Buy low, sell high. With the recent downturn in the global economy, most countries have felt the pinch. This Many investors have been steering is as true in the U.S.A as clear of the unstable US Dollar and anywhere else, maybe even looking to other currencies such as more so. When one has been riding as high as the US was the Euro, or Swiss Franc or even the Australian Dollar. Does this mean that for so long any fall can feel catastrophic. Indeed, many the US Dollar is dead? point to problems with banks and property in the USA as sparking off the recent world-wide melt of the day. Travel through many regions of down. As a result many investors have been the world today and you will find the same steering clear of the “unstable“ US Dollar phenomenon with currencies such the British and looking to other currencies such as the Pound, Euro and of course, the U.S. Dollar. Euro, or Swiss Franc or even the Australian Many South Africans, in their preparation Dollar. Does this mean that the US Dollar is for a trip abroad, will stock up on Dollars. dead? For many decades the same has been true of It would be true to say that this is hardly the Forex investors. first time in recent history that the Dollar has They use your currency (Rands) to buy gone though a rough patch. In fact, several Dollars. This is hopefully done while the economists will tell you that the US Dollar Rand is strong against the Dollar. Then, as the seems, much like the property market, to markets shift, and one of the local politicians go through a roughly “eight year cycle”. says something about nationalising the This may have to do with shifting US mines, or the President makes an unfortunate economic policies as one presidency gives comment about a serious matter, the Rand way to the next, or with the US diving into dips in value. This means that you can now Two thousand years ago when Rome was in its heyday the most widely used currency of the time in the Mediterranean world was the Denarius. No surprises really. This meant that even though local currencies were used all through the region, that the Denarius was the currency of choice. Before that, during and after the time of Alexander the Great, you might have found a similar demand for the Greek Drachma. The world power of the time had the most valued currency

global conflicts at regular decade intervals. Conflicts which at first may win them praise, then criticism, then derision. Popular opinion about the US and therefore its currency also weigh upon the value of the Dollar. Things like interest rates, which are at an all time low, also affect the currency market. With gold at a record high, many investors are looking to metals for the best stable returns. Some concerned market pundits are declaring that the Dollar will be “destroyed” as the US flounders in the midst of this economic recession. While there is always the possibility that the entire US economy could come crashing down, it is a sure bet that the rest of the world’s economy would soon follow its catastrophic collapse. However at present the USA continues to dominate world culture and trends. With Oprah no longer telling us what to think, we are all a bit bewildered and are looking in a confused haze to US TV to tell us who or what to “like” next. What do I think of Justin Bieber and Selena Gomez’ new romance? So, while some will turn to other currencies such as the ever growing force of the Yen, there can be no denying that the USA remains a world power, both politically and economically. As a result, the possibility for future growth by the Dollar against other currencies is strong. Especially if past trends hold true. This means that although the Dollar has undoubtedly seen hard times, there is definitely reason for investors to feel optimistic about the US Dollar. I say, the Dollar is dead! Long live the Dollar!

ECONOMY

Are we out of the woods? Writer Kendal Brown Moody’s claims that the SA economy is on the rebound, saying it expected the economy to grow by 3.5 to 4.0 % during the next two years. Minister Pravin Gordhan is a bit more optimistic and expects growth to reach 4.1% in 2012 and 4.4% in 2013. Let’s see what is happening globally as to whether we are rebounding or simply ricocheting closer to a double dip in the economy! Warning lights flashed indications of a slowdown in the global economy early in June when US employment failed to rise to expectations while the service sector growth in major European and emerging Asian economies was somewhat erratic. There were some welcome flickers of inflation easing in Europe but increasing prices in Russia and India and questionable data created a confusing view of what’s happening in China. Some hold that perhaps this is due to factors such as the high oil price (which has since dropped) and disruptions in supply due to Japan’s disastrous earthquake and will only temporarily affect the economy. Others have a somewhat less optimistic view. 44

Indications are that worldwide there is a slowing in the growth of factories, indicating that richer countries are not ordering as they too feel the pinch. Malcolm Barr, an economist at JPMorgan says,“Putting the services and manufacturing readings together... I think the PMIs as a whole are sending a pretty clear signal that there’s a slowing in growth taking place.” The gap is growing in Europe too between the powerful Franco-German economic core and countries like Spain,Ireland and Italy who are struggling with their debt burden and whose service sectors have slowed to a snail’s pace. Even British service sector growth took a knock in May though nothing like neighbouring eurozone. But what causes these effects on the economy? Take a look at the headlines below from one particular day late in June. Caution prevails in Asian stocks, Bonds mixed in late trade, Oil rebounds in Asian trade, Bonds weaker after auction, Flat JSE awaits Greek decision, Stocks lift, investors stay wary, JSE, rand rally on renewed Greek hopes of Greece. Many markets were affected by what was happening in Greece. Why? When Japan

suffered its disaster earlier this year, same thing. Unrest in North Africa and the middle East all get blamed for affecting the economy. Are they really to blame. Given the uncertain world in which we live is there ever going to be a time when all factors are favourable and what if suddenly they were, would we then see a boom in the economy which actually translated into jobs and plenty of them? If the biggest financial brains in the world are puzzled as to what is going on and don’t know how to solve it then we are, I suspect, in a spot of bother. If they do know, then they must be smoke-screening something they don’t want the rest of us jobless or barely hanging onto our jobs, to know! So in comparison to the rest of the world where many countries have a far more highly developed economy than South Africa and who are struggling to keep their economies buoyant, what chance do we have of finding a way out of this economic maze at this point? Are we out of the woods? Or can we just not see the wood for the trees? Or is the forest already burning?

Pioneering Local Economic Development Opportunities for Small-Scale Farmers Municipal commonage is land that was granted for free by the state to a municipality for the use and benefit of residents during the 1800’s, and is owned by the municipality and used to benefit its residents. Farm 502BH Land Reform Project started in October 2002 when a group of thirteen small farmers, from historically disadvantaged backgrounds, moved onto 65,5 hectares of irrigated municipal commonage land situated in the local municipality of Stellenbosch, Western Cape Province. The thirteen farmers constituted the Stellenbosch Small Farms Holding Trust and with the support by the local municipality became the lawful tenant of the land when it superseded the existing tenant, Spier Holdings Pty Ltd. The Stellenbosch Small Farms Holding Trust approached the Municipality, who is the land owner with the request to facilitate and coordinate an application for an infrastructure grant application to the then Department of Land Affairs, currently known as the Department of Rural Development and Land

Reform. The Municipality agreed to support and coordinate such an application to the Department based on the premise that it would assist the Municipality in fulfilling its legal mandate in terms of the Constitution to facilitate local economic development. Local economic development being defined as a participatory process which encourages public, private and civil society sectors to establish partnerships and collaboratively find local solutions to common economic challenges while creating environment which fosters economic growth. The sole objective of this application is to ensure that the infrastructure is provided to support and increase current agricultural production on the land and to use this as a stepping stone to assist small scale farmers in becoming commercial farmers. The grant application is therefore substantial in value and is one of the biggest applications ever made to the Department by Stellenbosch Municipality. The primary stakeholders in the project are the municipality

as land owner and the Trust as lessee, along with its beneficiary group of 13 farmers. Added to this are the government departments of Rural Development and Land Reform (DRDLR), Water Affairs (DWA), and the provincial department of Agriculture (DoA), who are able to provide grant funding in terms of its specific mandates for the upgrade to the property. Other role-players as part of the process include the University of Stellenbosch, NGO’s i.e. Agri-Academy. Role-players are not limited to the latter and should the need arise technical, financial and other resources and assistance from other role-players can be co-opted as may be required from time-to-time. With the achievements of the group of farmers to date, (under relatively difficult farming conditions), this project has the potential to become a successful (although small) land reform project in the Western Cape. It has the potential of also becoming a best practice model commonage management for South Africa.

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ECONOMY

Economic outlook for South Africa Writer Lee-Anne Richards

ocal Economic Development (LED) is of great importance to the people of South Africa. The government sees it as an important mechanism to decrease poverty and as a means to create and sustain jobs to make the economy grow. Most of the strategies of LED are contained in the various Integrated Development Plans (IDP’S) of municipalities. All stakeholders should have a say in how the economic environment in their areas are run and how it will assist with growth and community upliftment. We examine what is planned at a

national level as well as in some of the major cities in South Africa. “The Department of Provincial and Local Government has identified the following as key principles underlying LED: • Poverty and unemployment are the main challenges facing South Africa. LED strategies must prioritise job creation and poverty alleviation • LED must target previously disadvantaged people, marginalised communities and geographical regions, black economic empowerment enterprises and SMMEs to allow them to participate fully in the

economic life of the country • There is no single approach to LED. Each locality may develop an approach that is best suited to its local context • LED promotes local ownership, community involvement, local leadership and joint decision making • LED involves local, national, and international partnerships between communities, businesses and government to solve problems, create joint business ventures and build local areas • LED uses local resources and skills and maximizes opportunities for development

Local Economic Development is of great importance to the people of South Africa. The government sees it as an important mechanism to decrease poverty and as a means to create and sustain jobs to make the economy grow.

• LED involves the integration of diverse economic initiatives in an all-inclusive approach to local development • LED relies on flexible approaches to respond to changing circumstances at local, national and international level” - source: Government Toolbox At a national level job creation and skills development are priority areas in economic development. Two accords were recently signed by the Minister of Economic Development, Mr Ebrahim Patel that focuses on “addressing education and skills development as a core aspect of the New Growth Path.” These accords will see 30 000 new artisans and 16 000 college lecturers trained and under performing schools will receive business and community support. The National Skills Fund will be used to support these initiatives. Some other initiatives include plans to speed up job creation. With unemployment reaching 25.7%, the government is looking at measures to speed up job creation by implementing their “12 point implementation plan.” This includes: “harnessing short-term employment schemes, enterprise development and a series of public investment schemes to tackle unemployment…” (source: Bua News) Enterprise Development is another key area where government is looking at increasing small business incubation programmes. It is also proposed that 1% of the payroll in all government departments should be spent on skills development towards artisanship – this as a means to encourage enterprise development. The Industrial Development Corporation has also invested in job creation

as it approved funding of R8.4 billion on South African-based investments. This is supposed to create +-20 000 jobs in the economy. Other areas getting attention in the national arena is growing the high impact manufacturing sector for greater job creation. They have allocated R22.4billion towards “Green” Industries. 50 000 Small holdings (farms) are earmarked for development, focusing largely on subsistence producers. The Comprehensive Agricultural Support Programme (CASP) is used to support emerging farmers and this has created a number of jobs. City of Durban and its Integrated Development Plan Some of the strategies used to implement the city’s IDP – they focus immensely on crime: Neighbourliness and Community Forums: The aim is to promote connection with communities, increase access to information, and create support amongst communities, to take joint action against crime and to foster ownership of public spaces. Plan for Safety and Promote Ownership of Public Spaces: Reducing risks in public spaces and create pride amongst communities. Discouraging crime by showing public presence. Integration and Capacity Development: Integration between role players in the safety and security sectors to reduce duplication. Targetted Social Crime Prevention: Targeting areas to reduce risk that could lead to crime. Access to information and Education: these assist stakeholders with statistics to take action in crime prevention. Create an

Effective Criminal Justice System: Restore public confidence in the justice system – focused on efficient and effective prosecution of criminals. City of Johannesburg and its Integrated Development Plan. The city focuses on 6 main areas namely: Proactive absorption of the poor: Delivery of affordable housing – mixed property developments, providing basic services, subsidies for poor households, HIV/Aids awareness programmes, etc. Balanced and shared growth: Growing the economy by 9% by 2014 and making more jobs available through the Expended Public Works Programmes (EPWP). Facilitated social mobility and reduced inequality: Commitment to facilitate the secondary property market where price is determined by individuals ready to buy rather than developers. Settlement Restructuring: Delivery of 100 000 housing opportunities, formalisation and regularisation of informal settlements – provision of services, inner city charter – regeneration of the city in a balanced manner. Sustainability and Environmental Justice: Greening the city – building open spaces (parks). Innovative Governance solutions: Rebuilding and improving on the requirements for a functional, responsive, accountable and effective local government.

ECONOMY

South Africa’s policies for economic and social growth Writer Rishqah Roberts

mongst the many dictionary definitions found for the word “economy” is “the production and consumption of goods and services of a community regarded as a whole”. This fits well into the context of our article, as the South African community we ought to be served with ample opportunity for economic and social growth. Economic growth may be understood as an increase (or decrease) in the capacity of an economy to produce goods and services, compared from one period of time to another. While social growth sensibly would mean maturing and developing one’s communal skills to an acceptable level so we may live in a harmonized and civilized society with one another. As history has proven in the cases of the Second World War and the Apartheid regime we have made major strides forward on both the fronts of economic as well as the social growth. A product of which, is our proudly South African Constitution, for which we have to thank that we will never again be put in such a situation of reverse where economic and especially social growth will be completely ignored.

As a nation, we have come a long way in our seventeen years of democracy. But, that’s not to say we’re done growing and have become all that we can become in these past seventeen years. Surely there are matters some of us are not even aware of that need attention, where there’s loads of room for improvement. Our economic and social growth situation finds itself among these matters. At a growth rate of roughly five per cent per annum, which dropped, as to have been expected, with the 2008 – 2009 recession, but then increased fairly from 2010 to date. South Africa has been described as the economic “engine” of our continent. To make sure our position remains this way a national initiative supported by business, labour, state-owned enterprises, government economic enterprises, entrepreneurs as well as all spheres of government AsgiSA (Accelerated and Shared Growth Initiative for South Africa) plan has been developed, aimed at accelerating economic and social growth by at least six per cent in the period between 2010 and 2014. Which would in the process tackle, and solve, what many believe to be the root of most South African problems, unemployment and poverty, by

cutting the unemployment rate in half. The proposal is to develop our infrastructure by upgrading and building new railway lines, harbours, ports and roads which would create and sustain jobs. Jipsa (the Joint Initiative on Priority Skills Acquisition) was established shortly after AsgiSA to address the vital, yet few and far between skills which are necessities for AsgiSA to meet their objectives. To date there are not any legal bills specifically targeted at improving our economic and social growth situation. Thus, nothing legally has to be done to better the situation, unlike taxes which we are all forced to pay, knowingly or unknowingly. Thus, our chances of improving our economic and social situation and ensuring that it remains growing, as opposed to becoming stagnant is the success rate of programmes such as AsgiSA. To get involved, or even just find out more about AsgiSA, feel free to make contact with their media contact person, NobaTembu Pako on +27 43 735 1673, or +27 82 4622 714 - nobatembu@asgisa-ec.co.za. Who will surely be able to answer any questions you may have.

FINANCE

Where should you be investing? Writer Abraham Agulhas This is probably one of the most critical questions that every potential investor is asking. It should be noted though that the investment needs of one individual could be vastly different from another. Before investing, the individual needs and personal circumstances of that individual must be taken into account. This will enable the person to make sound investment decisions. There is no one size fits all approach when it comes to investment. Personal savings or investment forms a critical part of our economy. The South African economy is in desperate need of savings to boost our economy to bigger heights. Whilst savings per capita in Japan is around 25% in South Africa it is about 6%. This article is not aimed at giving financial advice but more to give general guidelines and you should still consult your broker or financial adviser for advice. It is absolutely imperative that we save as much as we can to generate sufficient wealth for you and your family. Everyone can save irrespective of your level of income. Saving is the starting blocks of financial independence. Some of our readers asked the following questions. I will attempt to answer this to the best of my ability. Can an investment expert with absolute surety say what the best way to invest your money is? An investment expert can only guide you to the best possible decision. He / she cannot make the decision on your behalf. Your personal circumstances must be taken into account. E.g. what is the aim of the investment? Do you want access to the money at short notice? What is your risk

profile, etc? What are the general guidelines that a person or institution should take into account before investing? You need to establish or decide on investment goals for you or your company. The lower the amount that you invest, the longer it will take to reach your goals. It is always advisable to have short term goals as well as longer term goals. What is a safe investment? A safe investment could be a guaranteed returned product. This is where the insurer guarantees a fixed return on your investment at the inception date of the investment. You can also have a safer investment based on the asset classes where you invest in. What is a high risk investment? High risk investment is normally investment in equities etc. It is important to test the â&#x20AC;&#x153;appetiteâ&#x20AC;? of the investor. The implications of high risk or an aggressive investment product must be explained to the investor. Normally, the higher the risk of your investment, the bigger the return. With ever increasing interest rates, should you be investing more money in paying off your mortgage bond or put your money in unit trust? In general, it is advisable to put extra money in your bond. However it is also important to discuss other options with your financial planner or adviser. It might just be that you can get far better returns on another investment product compared to putting the extra money in your bond. Is it a good thing to invest money if you have significant debt? In times like this, it

is very difficult for anyone to be debt free. In fact to be debt free can also count against you when it comes to your credit rating. Hence it is important to Design a plan with your financial adviser to get rid of your debt or manage it in the best way possible. Must every investment plan be goal related? E.g. Retirement savings are for retirement only! Paying extra money into your bond is to settle the bond earlier and not to access that money later for a holiday etc. The sweet reward of savings takes time. It is important that your investment plan is goal orientated because each investment plan could have certain benefits. E.g. saving for retirement or buying a Retirement annuity could provide you with annual tax benefits whilst you are accumulating wealth for retirement. What about the cost of investment? The investment cost is something you need to discuss with your financial adviser. The cost of the product that you choose must be explained to you. There could be other factors like tax, inflation etc. that also impacts on the overall performance of your investment. All of this must be taken into account to determine the net value of your investment. To invest money is not a once off decision. Many factors can impact on your investment. Ongoing involvement and regular assessment of your portfolio is very important. We all wish for a better life, but the planning starts with us. Abraham Agulhas is a Sanlam Financial Adviser. This article is written in his personal capacity

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oking for a smart and secure way to save? From just R1000, you can invest in RSA Retail Savings Bonds, which er competitive interest rates and guaranteed financial growth. You pay no fees, no commission and it’s riske – that’s right, no fees, no commission, no risk. Join thousands of South African investors and buy fixed or ation-linked bonds which have different maturities and can be purchased for amounts from R1 000 to R5 million.

To encourage the public to save, the National Treasury introduced a set of savings instruments known as RSA Retail Savings national Bondstreasury in 2004. These bonds are intended Department: Nationalto Treasury create awareness about the importance REPUBLIC OF SOUTH AFRICA of saving.RSA Retail Savings Bonds are secure, risk free and deliver solid guaranteed returns. These bonds can be bought for as little as R1 000.00 and carry no commission, agency or service fees. For more information visit www.rsaretailbonds.gov.za or call our helpline on 012 315 5888.

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Savings Products on offer Fixed Rate Retail Savings Bonds Rolling maturities of 2-years, 3-years and 5-years. Offers fixed rate until maturity. Investment amount R1 000 to R5 million. Interest payment option - payments received semi-annually or monthly (monthly repayments for over 60’s only). Option of reinvesting interest (receive compounded interest at maturity) 2 Year Fixed Rate 7.50%, 3 Year Fixed Rate 7.75%, 5 Year Fixed Rate 8.25%. Please note that the above rates are applicable only for August. Inflation-linked retail savings bonds 3-year, 5-year and 10-year maturities. Inflation protection for investors. Bi-annual interest payment (May and November). Investment amount R1 000 to R5 million. Capital Adjusted bi-annually (May and November. 3 Year Inflation 1.75%, 5 Year 52

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RSA Retail Savings Bonds are available to South African citizens and permanent residents of any age gro your bonds now online at www.rsaretailbonds.gov.za, from the National Treasury offices in Pretoria or at a Office. You can also buy them at Pick ‘n Pay stores nationwide, but you will have to first register online or by our helpline on (012) 315 5888.

Inflation 2.00%, 10 Year Inflation 2.50%. Please note the above rates are applicable until the end of November 2011.

Applying for a RSA Retail Savings Bonds 1.1.1 Through the SA Post office: Go to your nearest Post Office branch, complete the application form(s) provided, please ensure you are in possession of the following: Your green ID book, Birth Certificate [if applying for a minor child or incapacitate person] or the valid certified copies. A bank guaranteed cheque*in favour of “SA Post Office” and or cash. 1.1.2 Through Pick ‘n Pay: Register first on National Treasury helpline, 012 315 5888. There is no application form required for this option. Go to your nearest Pick ‘n Pay store, provide them with your ID number, inform them of the investment option that you desire. Pay with either, cash, credit/debit card, payment voucher or cheque [personal/ bank guaranteed] 1.1.3 Through the Helpline 012 315 5888: Register your personal and investment details. Obtain an Investor Number. Obtain National Treasury’s bank details. Make you payment through internet banking or directly at your bank or at a Pick n’ Pay store. 1.1.4 Through our website: Our Log-In and Register buttons are displayed on the home page; to register log on to www. rsaretailbonds.gov.za, click on the Register button; complete the online application form; retrieve your Investor Number from

your e-mail [an e-mail address is required to successfully complete the online form]; click on the Log-in button; enter your Investor number *it will be number starting with “WW”+; enter your password [as captured on your online form]; click on the “Activate Account” link just under your log-in details, you will now be sent into your profile. To buy a Retail Savings Bond; log-in and open your profile; click on the “Apply for Bond” link that is on the left-hand side of the screen; select the required options and update; The National Treasury’s BANK DETAILS will be provided upon completion of the “Apply for Bond” online form. To make payment: Option 1. Log-on to your internet banking site, using the National Treasury’s bank details provided when applying for a bond, load these bank details as beneficiary on your Internet banking profile; make the desired payment. Option 2. Take down/print the National Treasury’s bank details provided. Go to your bank and make an EFT [electronic funds transfer] from your bank account to the National Treasury’s bank account. *bank details available on request] Thereafter a confirmation letter showing the full details of your application and investment shall be sent to you within a week via post or e-mail, depending on which correspondence option chosen when registering to purchase a retail savings bond.

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International Transport Investors’ Conference a success The Department of Transport hosted a very successful International Investors’ Conference from the 13th to 14th June 2011 at the Cape Town International Convention Centre under the sterling stewardship of Transport Minister Sibusiso Ndebele. Under the theme Creating winning partnerships through investment in transport infrastructure the conference focused on creating opportunities for investment in transport infrastructure. The conference was aimed at attracting local and international investors to major transport infrastructure projects in order to establish local industries, and contribute to economic growth. Approximately more than 900 delegates from across the globe, representing a cross-section of interests from governments, state-owned entities and regulatory bodies to research bodies, funding and investment institutions and many others attend the Conference, far exceeded the initially anticipated 500 investors and participants. Among some of the key role players, investor and stake holders represented, were the World Bank, African Development Bank, Development Bank of Southern Africa, the IDC, NEF, ADB ETC, IDC, DBSA, Asset Managers such as the Old Mutual, Metropolitan, Sanlam, ABSA, Vunani Capital, PIC, Harith Investment, Investment banks such as RMB, STD Bank, Citi Bank, JP Morgan, Deutche Bank, International investors such as KFW, Natixix, JICA and Transport engineer firms to mention but a few. The conference focused among others, on: • identifying and packaging potential projects desirous of investments in the transport sector; • showcasing different transport projects critical to the delivery of transport 54

infrastructure objectives; • identifying and attracting investors for identified projects; • enabling interaction between investors and government on proposed projects, providing an opportunity to demonstrate interest by investors; and • testing eagerness to invest in transport projects. Delegate at the conference explored and deliberated on present and future funding requirements in the improvement of transport infrastructure in the Republic, which would lead to much needed socio-economic stimulation. Addressing the delegates in his opening address during the conference, Minister Ndebele said “Long-term development planning and effective resource allocation are critical for the realisation of the economic and social goals of our Transport Sector. The introduction of ‘Life Cycle Design and Costing,” combined with effective routine and preventative maintenance will ensure that we optimise transport sector infrastructure in providing cost effective service delivery. We gather at this conference therefore to explore the various financing innovations which, when implemented shall address the needs of our country and its economy. Transport and its related services is a catalyst for economic growth as well as direct and indirect job-creation in South Africa. The provision of affordable, safe and reliable transportation of goods and people within our economy are critical to the development of our country.” It has been noted in recent years that investors have shown a greater interest in investing in projects that combine a commercial and a social return. Investors consider and evaluate the social and environmental impact of a project in relation to their commercial

return, an approach that clearly fits in with our government objective of creating a better life for all”. The Department of Transport is tasked with the responsibility to provide safe, affordable, reliable, efficient, and fully integrated transport systems and infrastructure that best meets the needs of its users. The Department is further tasked with providing transport infrastructure and services that are efficient and affordable to individuals and corporate users, while ensuring the provision of increasing levels of safety and security across all transport modes. The challenges facing the South African transport system have been documented over the years and can be categorised into three main categories namely: • demand outstripping supply with regards to infrastructure; • lack of appropriate investment in the transport sector over the past decades, resulting in poorly maintained infrastructure; and • limited or absence of investment into the various modes. The country’s fiscus is not in a position to fund all the needs of the transport sector. For this reason, Government’s ambitions need significant support from the private sector, notably in terms of sustainable investments. Investors and the private sector need to be considered as financial partners in the implementation of the overall turn-around strategy for the transport sector. Research indicates that a large part of private sector investment, in developing countries, is made up of foreign investment into the various sectors. The challenges facing the South African transport sector in the various Government spheres range from budget constraints,

Sibusiso Ndebele Minister of Transport

Jeremy Cronin Deputy Minister of Transport

Strategic transportation projects New Commuter Coaches Shosholoza Meyl new coaches / Locomotives N1/N2 Winelands R 72 / N2 Toll Road R 200 Ring Road N2 Wild Coast Project Sandal’s Domestic Medium Term Note Wild Coast Meander Mahatma Airport Development project West Rand Logistics Hub Cape Town Rail Link

Tendering authority

Gautrain

PRASA PRASA

Status feasibility study June 2011 June 2011

Estimate Capital Cost ( ZAR Billions) 86 11

SANRAL SANRAL SANRAL SANRAL SANRAL

Complete Complete Complete Complete Not Applicable

8 - 10 5.35 4.16 8 - 10 55 by 2016

Eastern Cape Dept R&T Dot and Eastern Cape R&T Blue IQ PRASA

Complete Work in progress

1.35 0.5

May 2011 Complete

3.19 3.5

ageing transport infrastructure and lack of modal integration. However, government continues to aggressively address these sector needs, notwithstanding. Some of the key transport sector projects highlighted by the Minister in his opening address at the conference, contextualizing the investment environment and framework in the Republic related to: • The completion of the ultramodern, stateof-the-art Gautrain rapid rail network, Link 1 between Sandton and O R Tambo International Airport which was opened in June 2010 and Link 2 from Johannesburg / Rosebank to Pretoria opened in August 2011. This ushers in a new era in public transportation matching world standards for rapid rail transport.

• The Gauteng Freeway Improvement Project, valued at R22 billion, is an initiative that aims to encourage people to use public transport, in an effort to alleviate traffic congestion on Gauteng’s freeways. SANRAL, together with its Partners, the Provincial Government of Gauteng, and the Metro authorities in Tshwane, Johannesburg and Ekurhuleni developed a project to upgrade or construct approximately 500 kms of road around the three Metros. • The successful implementation of the Rea Vaya Bus Rapid Transit System, transporting some 30 000 people per day, has been awarded the “Encouragement Award” by the International Association of Public Transport (UIPT) in Dubai in May 2011. • The taxi industry in Johannesburg became

a 66% shareholder of the Rea Vaya Bus Rapid Transit System Company, marking one of the most significant Broad Based Black Economic Empowerment [BBBEE] transactions South Africa has seen in the transport sector. A number of key strategic areas for investment including rail, roads, public transport and maritime were identified, as indicated on the table above. The conference has established a platform for investors to come into the transport space in South Africa; it has raised the investment profile of the region and of the whole continent.

ECO

Ecologically-sound infrastructure Writer Sara Booley

n entire city that has been rendered environmentally-friendly is Amsterdam. Back in 2009, renewable energy projects were combined with a more rigid set of efficiency rules in order to cut overall carbon footprints. Around 1200 households were geared-up to install energy-saving systems, whilst other

households were given access to finance from Holland’s Rabobank to invest in energy-saving light bulbs and ultra-efficient roof insulation. The city also installed 300 power hook-ups to recharge electric cars and solar panels were installed on the historic 17th-century townhouses. Infrastructure upgrades allowed households to sell the energy they generate from small-scale wind

turbines and/or solar panels back to the city’s power grid, as an initiative to encourage the use of renewable energy sources. Local electricity network operator, Alliander, invested €300 million ($420 million) in “smart grid” technology that uses network sensors and improved domestic energy monitoring to trim electricity use. Part of the plan also includes up to €200 million ($280 million) to be spent by local housing cooperatives on boosting household energy efficiency, and €300 million from companies including Philips and Dutch utility Nuon to be invested in other energy-efficient technology. These projects were the first few steps taken by Amsterdam towards making its infrastructure more eco-friendly, which made Amsterdam the world leader in turning its city green. A more futuristic development that was proposed to be built towards the end of last year is the Straddling bus in China. Due to increasing volumes of traffic on the roads

Infrastructure upgrades allowed households to sell the energy they generate from small-scale wind turbines and/ or solar panels back to the city’s power grid, as an initiative to encourage the use of renewable energy sources

considering China’s large population, traffic has proven to be the worst in the world, with one traffic jam lasting up to 9 hours just outside the city of Beijing last year. Putting additional buses on the road will aggravate the traffic problem, and is definitely not an environmentally-friendly alternative, since the noise and air pollution produced by buses are far more detrimental to the environment and raises the carbon footprint. The straddling bus seemed to be the smarter alternative, elevated above the street to allow traffic to pass through underneath the bus so that it does not cause any congestion. The bus can carry up to 1400 passengers at a time, reaches a speed of up to 40km’s per hour and costs about a fraction of the price it would cost to develop an underground subway system. The bus is low-carbon and environmentally friendly, releasing zero gas emissions since it is powered by electricity that is generated from solar energy gathered from rooftop panels of each station, whereby the energy it

stores can support the bus until the next stop where another round of charging takes place. It solves the problem of ordinary-fuelled buses, and is a combination of a subway and BRT system. It will reportedly reduce traffic jams by 25-30 percent and its estimated cost is at 500 million Yuan, which will take about a year to complete, compared to the three years it would have taken to develop an underground subway system. Cars travelling underneath the elevated bus will be signalled if they are driving too closely to the wheels via radar technology, and larger vehicles will be signalled to detour if they are too large to pass beneath. Closer to home, Vodacom has proposed the development of their “Green Building” in Midrand, Gauteng which is merely an innovation centre that is aimed towards creating a global strategy in order to create mobile technology that impacts the environment in a positive way. Ultimately, it is aimed at passing cost reductions to

customers who are at the core of the centre; if the project is driven aggressively and efficiently. The innovation centre will be one of the most environmentally-friendly buildings within the Vodafone group which will be powered with renewable energy employing cooling and heating technologies. It will house a team of experts whose aim will be to develop energy efficient technologies to counter South Africa’s and the planet’s greatest environmental challenges. Moreover, the building will be accredited according to the Green Star rating system as established by the Green Building Council of South Africa (GBCSA). Not only will the centre serve all of Vodafone’s global markets, but it will also play a role in reducing carbon emissions around the world. The centre is proposed to be completed later during this year. Vodacom’s trend of developing environmentally-friendly infrastructure should pave the way towards a sustainable South Africa, and taking into account the examples from across the world including that of Amsterdam and Beijing should set the trend for an up-and-coming infrastructure that is environmentally-friendly. Although the Vodacom initiative is not targeted as large-scale as the developments in Amsterdam and Beijing, the stepping stones towards investing in green technology so that the steep costs of such technology may be reduced should not go by unnoticed. 57

Acid mine drainage has become one of the most serious environmental issues facing a water-scarce South Africa

ECO

Top ecological issues in South Africa Writer Sara Booley

country’s economic success can often be a trade-off to its sustainability and vice versa, if precaution is not taken seriously. It’s not often that a developing country like South Africa which is rich in natural resources can rise to the top without over-exploiting its natural resources to benefit economically. Rising concerns have been focused however on questioning the sustainability of our resources if we do not take action immediately. We have recently been exposed to clashes between economic success and sustainability, more specifically within the mining industry, which is one of the major contributing industries to South Africa’s economic activity next to agriculture. Acid mine drainage (AMD) has become one of the most serious environmental issues facing a water-scarce South Africa. When water levels beneath the earth’s surface rise and come into contact with the sulphide minerals as a result of underground mining activity, the water becomes highly acidic. Once that water reacts with other minerals, by-products such as aluminium, zinc, lead and uranium further contaminate the water. When the polluted water flows onto the surface from underground, it is known as AMD. Some mining companies located in the Witwatersrand are found guilty of allowing their toxic water to flow into streams, dams and groundwater, taking no precaution whatsoever in preventing the contamination of water as a result of their mining activities. Witwatersrand has reached its crisis point where the East Rand has been predicted to suffer from AMD that is expected to reach and flow to the surface within months from now if the situation is not controlled immediately. Along the

West Rand, some areas have already been subjected to AMD which has left borehole water contaminated, posing as a great healthrisk to plants, animals and humans in an area where water is terribly scarce. Sadly, AMD has only reached public and media attention in recent years as a result of government and mining houses keeping the issue under wraps so that they need not be held accountable which may have led to them to addressing the financial costs of rectifying and preventing further damage to the water supply and the environment. Earth Metallurgical Solutions is a company that played a large role in rectifying AMD which became prominent in its development of a water purification process that disassembles the acid mine water into its constituents, which are then combined with chemicals into useful products such as fertilizer, emulsion explosives, thermal salts and potable water. Richard Doyle, Managing Director of EMS thus believes that treating AMD should not be limited to purifying polluted water, but should also include solutions to recycle the toxic byproducts back into the economy successfully. The company’s objective is profitable remediation of AMD which is possible through current technical developments, adding to a more sustainable South Africa. For example, the lab trials during the water purification process showed that the salts from AMD can be successfully converted into the thermal exchange medium which is used in concentrated solar plants of which South Africa plans to demonstrate within the next 2 to 4 years. Hydraulic fracturing on the other hand has also become a hot topic of debate as an environmental issue in South Africa. Also known as fracking, the process of hydraulic fracturing can be explained by being the

process of increasing the extraction and ultimate recovery rates of oil and natural gas from beneath the earth’s surface. This is done by propagating a fracture in a rock layer through employing the pressure of a fluid as a source of energy. The Karoo has ironically become a gold mine in shale gas, upon which the oil firm Royal Dutch Shell planned to extract shale gas due to the unique make-up of the indigenous South African rock – shale. However, the environmental outcome of fracking has brought upon much scepticism and has led the South African government to terminate Shell’s fracking frenzy until all ecological consequences have been fully studied. Professor Bruce Rubidge, geologist and palaeontologist of the University of the Witwatersrand believes that a greater understanding of the Karoo’s groundwater resources is essential, as well as the effects that fracking may have on the salinity thereof. He reckons that the fracking process will contaminate the sea and brack water with chemicals that will leave the soil in ruins, as has happened in several cases in America. He also reported the negative conditions that fracking would leave the veld in, around the area of the Southern Karoo. Many locals have been unhappy about the government’s potential acceptance of the plan, where several have expressed their views that the economic value of the project does not nearly equate with the value of a sustainable, unexploited environment. Mass mobilisation in the form of Treasure the Karoo Action Group has insisted that mining companies have never kept their promise of protecting and repairing the environmental damage caused by mining activity, and the government’s negligence to enforce environmental legislation has aggravated scepticism of the project’s success. 59

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low VOC

Plascon South Africa strives to inspire more ecological considerate decisions throughout our business. We have responded to the challenge by innovating unparalleled sustainable solutions based on the 3 fundamental pillars of compliance, sustainability and products.

Compliance = Green Processes Several Environmental Management Systems have been implemented in all of Plascon’s South African Manufacturing Plants and in 2005, we attained ISO 14001 certification at all of our plants.

Sustainability = Green Practices Pioneering ground-breaking processes have been implemented to ensure that we are starting on ground level. Our processes focus strictly on achieving complete sustainable progression.

Products = Green Products Plascon is dedicated to provide industry-first solutions, through quality, environmentally-aware products, which do not compromise the finished product performance or our world. Plascon has a one-stop product solution from preparation to topcoat; ensuring your indoor air quality is Breatheasy™. Plascon’s new Kitchens & Bathrooms™ paint combines superior stain resistance with a premium matt finish. Plascon Kitchens and Bathrooms™ formulated with SILVER PROTECT ™ and MICROSHEILD ™ inhibits microbial growth. Available in White and a Pastel tintbase, with less 16g of VOC’s per litre it is also Green Star compliant.

coppercoast BEY/01

Winner in the Paint category, Survey of 5000 people by Nielsen

For more information contact the Plascon Advisory Service: 0860 2040 60 or visit our website www.plascon.co.za, www.plascontrade.co.za

OUR GREEN STARS Plascon Double Velvet was the first product in SA to be launched with a Breatheasy™ formulation. This leading Breatheasy™ formula releases fewer harmful chemicals into the air as it dries, dramatically improving indoor air quality. Plascon Cashmere soon followed.

PLASCON DOUBLE VELVET gives your interior walls a luxurious look and feel that is easy to keep clean and beautiful, even in your most “lived in“ rooms. A unique Stain Barrier™ formulation forms a multilayered protective coating preventing dirt from penetrating the paint. PLASCON DOUBLE VELVET is Breatheasy™ – Virtually No Odour.

PLASCON CASHMERE gives a long lasting plush matt finish, that creates a sense of style for both the interior and exterior of your home. A unique Triple Action Bead Technology™, diffuses light thereby hiding imperfections and forms a protective barrier which maintains an absolute matt finish over time, even with regular wiping.

• Washable & stain resistant • Low odour • Luxurious velvet finish

• Washable & stain resistant • Hides imperfections • Stylish matt finish

• Low Volatile Organic Compounds = Breatheasy™ formula • 7 Year Quality Guarantee

Features

Benefits

Excellent hiding & coverage

Complete hiding in 2 coats

Breatheasy™ Formula

Improved indoor air quality

Water based

Clean up with water

Available in thousands of colours

Extensive range of colours to create beautiful décor

Velvet Sheen and Plush Matt

Choose the finish that suits you

Seven Year Quality Guarantee

Superior Plascon product performance

Keep in mind that millions of people are far more likely to support a company if it is seen as helping the environment

Go green with these 3 easy tips for your office Writer Caitlin de Kok, www.all4women.co.za

One of the biggest energy wasters is the office environment, but you can make a change if you set your mind to it. It doesn’t matter whether the change is big or small, every little bit helps! 1 Encourage a green culture at your office Change won’t come easily as many people don’t like to take on extra responsibilities at work. The best way to make your office eco-friendly is to encourage a culture which recognises the importance of saving the environment. Start with your friend group at work, tell them how you decided to bring your own glass and mug to work to cut out the Styrofoam cups. Get the ball rolling from there. You could ask your boss if he could make some time in a meeting to discuss these issues. Keep 64

in mind that millions of people are far more likely to support a company if it is seen as helping the environment. Once people have been educated and made aware of what they need to do, put up reminders on notice boards and in the kitchen. Otherwise they may well forget. You could also appoint a green monitor (one person or multiple people) to make sure that all appliances, electronics and lights are switched off at night, and who can act as a receiving point for green suggestions from other staff members. It may sound like a lot of work, but at the end of the day if you’re saving the company money in electricity bills, I’m sure they’ll hold you in the highest regard.

necessary. Try and communicate as much as possible via telephone and email, avoiding faxes and snail mail.

2 Paper saving There are multiple ways to save paper. You could start by buying recycled paper (such as Typek 50% recycled paper from Sappi). Other methods include double sided printing and only printing that which is strictly

Would you like daily green tips delivered directly to your email inbox? Subscribe to All4Women daily green tips http:// all4women.co.za/sub.php

3 Recycling What paper you do use can easily be recycled. Ask that your company supply different coloured recycle bins. There are many companies which pick up and sort these bins on a weekly basis for a small monthly fee. Items which can be recycled in and around the office include: paper, glass, plastic, old ink cartridges and batteries. For electronic waste such as appliances, computer parts and old cell phones, you may need to contact a specialist company (visit www.ewasa.org for a comprehensive list).

ECO

Carbon management as essential, not luxury Writer Vittorio Bollo, NOSA R&D / Training Department

Climate change is undoubtedly one of the defining issues of our time. It continues to engender copious scientific studies, much political debate and even controversy, with sceptics continuing to argue loudly that anthropogenic (i.e. human-made) global warming is overstated or even false.

However, the international consensus is that global warming and climate change are real issues affecting us all. Certainly, the 2500-odd scientists that comprise the Intergovernmental Panel on Climate Change (IPCC), an organization awarded the Nobel Peace Prize in 2007, back this up with their scientific studies. In fact, the IPCC’s usually conservative data was overshadowed in 2009 when a special study by 26 of the world’s top climate scientists called “The Copenhagen Diagnosis” was released. Their modelling showed that global ice-sheets were melting at an increased rate; Arctic sea-ice was disappearing much faster than recently projected, and future sea-level rise was expected to be much higher than previously forecast. The study concluded that several important aspects of climate change were “occurring at the high end or even beyond the expectations of only a few years ago.”

This pessimistic view has been echoed by the acclaimed Canadian conservationist, David Suzuki, who stated that, “In the late 80s when I began to take climate change seriously, we referred to global warming as a “slow-motion catastrophe”, one we expected to kick in perhaps generations later. Instead, the signs of change have accelerated alarmingly.” Uncertainty and unpredictability regarding the data and future projections thereof only make managing climate change even more difficult. But how does one ‘manage’ climate change, given that it is such a complex and global issue? Fundamentally, awareness of climate change needs to be heightened in the workplace. There continues to be either vague understanding or even downright misunderstanding about this critical issue. For example, many people still continue to believe that the words ‘global warming’ connote that everywhere on Earth will get

warmer, which is incorrect. Rather, it is the warming of the planet that will create greater climate instability and flux, i.e. climate change. Climate will become more extreme, more uncertain, not simply ‘hotter’ everywhere. Therefore, education in the workplace on global warming and climate change continues to be crucial. All workers need to understand the interrelationship between carbon, primarily from the burning of fossil fuels like oil and coal, and the resulting greenhouse gases (GHGs) that are the leading contributors to global warming. Everyone needs to understand that every time they flick on a light switch at work or at home, or drive in a car or taxi, they are contributing to climate change. A less carbon-intensive economy and lifestyle are imperatives today, not nice-to-haves. Carbon management, the platform for any management of climate change-related risk, is essential in any modern business, irrespective of industry sector. Traditional environmental management alone cannot ensure sound carbon-related solutions. Nor can carbon management be allowed to ‘stand-alone’, isolated from the rest of a company’s risk profile. Instead, carbon management needs to be a ‘golden thread’ that runs throughout all that a company does, an integral and dynamic part of its enterprise-wide risk management structure. Company-wide ‘carbon footprinting’ is a good start, in that it affords a company the ability to objectively

assess just how much carbon its production or services, including all electricity use, do indeed emit. A company truly committed to sustainability will even include all emissions from ‘third parties’, i.e. suppliers, contractors and even users/customers. But carbon footprinting can only be the foundation for sound carbon management, not the end itself. Carbon management will have to include mitigation (i.e. proactive) measures, as well as even adaptation (i.e. reactive) measures, depending on the nature and location of the business and relevant climate-related risks. The thinking and solutions around climate change risk within a company must be holistic and comprehensive, even dynamic and ‘out-of-the-box’, not linear and ad-hoc. Doing nothing is simply not an option. As Dr Richard Gammon, a professor of chemistry and oceanography, states: “If you think mitigated climate change is expensive, try unmitigated climate change.” Climate change has forced a dramatic paradigm shift in the way business is done and the very concept of ‘risk’. It requires clear understanding, vision and courage from management, and the full, meaningful participation of all. It will depend on our individual and collective response. Amir Jina, a climate change scholar, stated, “I think climate change is important because it represents a sickness in the way that humans think about the world. It is a symptom of the fact that we think the world is inexhaustible and it is there for us to use and not to work

with. What we need to tackle climate change is to change this idea.” Education and awareness must be the foundation on which sound carbon management is built. Our sustainable future depends on that. NOSA recently introduced a new 2-day training course to the market: Climate Change Management Course. The purpose of this course is to assist companies in setting environmental objectives and targets to mitigate climate change and covers the following: Climate change science and definitions, Legal, economic and sociopolitical context of climate change, Carbon foot-printing, Climate change mitigation and carbon footprint reduction, Climate change adaptation, Carbon management. This course will benefit the following target groups at a NQF Level 5: Environmental Managers, SHE Management Representatives, Risk Mangers and General Managers. For more information on NOSA training programmes, go to www. nosa.co.za or email info@nosa.co.za

My personal motto, veritas et virtus, was learned from my most excellent old school, Queenstown Girls High School motto. It means truth and courage

WOMAN OF SUBSTANCE Thembisa Jemsana Writer Lee-Anne Richards

ntroducing Thembisa Jemsana, General Manager: Integrated Affordable Housing, at Amdec Property Development. Working in a so-called “male dominated” industry, this vibrant and sassy lady knows where she’s going and what she wants out of life. Inspired by strong women that have influenced her from a young age, she is destined to make strides in her career and industry. Beyond spoke to her to find out more. Who is Thembisa Jemsana? About me: I am born, bred and built by the Eastern Cape where my family homestead still is and I look forward to returning there every year. Although, I have now been in Cape Town for almost 8 years, with a mad love for this mother city, my heartstrings remain tied to the Eastern Cape. My maternal grandmother, who is now a couple of days short of turning 90 years old, is my hero and my north star. I was raised by women – strong, long-suffering women of excellence. Their influence on my life has been significant such that I never had to look far for rolemodels or inspiration. My two mothers (my mother and her older sister) are my compass. I have deep and abiding admiration, respect of, and am in awe of them. Not just them, but

a number of other unsung heroes that have crossed my path so far: teachers, community leaders, neighbours, colleagues – many people who will never win accolades or be celebrated have contributed to who I am and to my advancement, and that of my peers in this field. My personal motto, veritas et virtus, was learned from my most excellent old school – Queenstown Girls High School (www.qtghs. co.za) motto. It means truth and courage. I find the world to be difficult, demanding and debilitating on the spirit sometimes and these words (truth, courage) inspire me to hold my head up and to keep going. I work in the construction industry – a very difficult and dubious environment where if you cannot hold your own, regardless of the extent of your talent or intelligence, you will quickly be swallowed up or trampled underfoot. So, it is important to know and to practice one’s truth and to do so is to exercise courage – this keeps one from the discouragement losing faith. That is the greatest danger of all: to lose one’s faith. Sometimes, when your environment is not affirming or conducive to hope, you begin to lose faith in the world, in yourself and in your abilities. And I also just love Max Erhmann’s words that, “With all

its sham, drudgery and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.” Although I read for a bachelor of science in quantity surveying for the Nelson Mandela Metropole University (www.nmmu.ac.za), I pursued my career in construction project management. I have since worked on several exciting developments, including the landmark R300mil Gugulethu Square mall (www.gugulethusquare.co.za). What is your present occupation and what does it entail? For the past 8 months I have embarked on an exciting career stepping stone in property development. My ultimate career goal is property investment and entrepreneurship. But, right now, I am energised and feel very blessed to have the opportunity to be General Manager of Integrated Affordable Housing at Amdec Property Development (www.amdec.co.za). My key responsibilities include leading the strategic direction of my business unit, maximising the customer value proposition, achieving the desired shareholder value and getting the most out of the company’s investments. I am entrusted with the establishment and profitable running of this business unit. Amdec places 69

A lot of people in our society, in our nation, feel helpless and hopeless – frustrated and forgotten – as if their needs and dreams do not matter. We know that they do matter. We are very cognisant of this cry and we, with our partners and banks, seek to address it. One of the ways in which we have gone about this is to acquire for re-development and refurbishment abandoned and hijacked buildings in downtown Johannesburg.

great onus on each business leader becoming an intrapreneur and self-sufficient leader and a great part of leading is to help others climb the ladder of success too. There is also emphasis on self-development and growth in business acumen and strategic thinking. I could not have asked for a better opportunity. How does the company that you work for contribute to the local economic development of the country? Amdec is historically known for pursuing developments that address the upper middle class needs. By investing in affordable housing, not only is it a sound decision to invest in a market that has great demand, thus great opportunity for growth and return for investment, but we are mindful of the important role that sound, affordable housing plays in the establishment of an 70

equitable society. I believe that, when people have knowledge of the means to improve their lives, they will have hope – and hope engenders willingness and commitment. A lot of people in our society, in our nation, feel helpless and hopeless – frustrated and forgotten – as if their needs and dreams do not matter. We know that they do matter. We are very cognisant of this cry and we, with our partners and banks, seek to address it. One of the ways in which we have gone about this is to acquire for re-development and refurbishment abandoned and hijacked buildings in downtown Johannesburg. One of our most successful re-developments is a 26-floor building that has 924 apartments and houses 2000 people. How do you view local economic development and what do you see as quick

wins for communities and the government? Communities that work together have the ability to change the world – for better or for worse. But, for the better, communities need to first recognise that no other person or power is as invested in their communities or in the lives of the people therein, than themselves. This lady sure knows what is good for our communities and what we should focus on to ensure sustainability and a good life for all. It is now up to all the stakeholders to play their part in realising that housing is a basic need and that it engenders a sense of pride and belonging for communities. Thembisa has clear goals and it goes without saying that she will prosper in whatever she attempts to do and we wish her well in her career moving forward.

DISTINGUISHED GENTLEMAN Elton Brown

Writer Charlene Heyburgh

outh Africa has the highest number of people infected with HIV/AIDS in the world. That is a shocking statistic, but, many of us are too afraid to address this issue because of the stigma attached to it. Not Elton Brown, CEO of Revalorize Condoms, South Africa’s first BBBEE owned condom manufacturing and distribution plant who, driven by a desire to improve and transform the social and economic conditions around him after losing a loved one to HIV/AIDS, decided to stand up and make a difference. Beyond had the privilege of interviewing this remarkable young man. How did you come up with the concept? I had just completed my business studies through Unisa and my dream was to become an entrepreneur and to start my own business. This was quite difficult at first as many opportunities had come and gone and finding the ideal start up project wasn’t as easy as I had expected it to be. It was around this time that my then 35 year old uncle, fell ill with tuberculosis. This was an emotional time for my family and I and over the next 5 months, I spent all of my time trying to nurse him back to health. His condition didn’t improve and sadly, he passed away. It was only after his passing that I discovered that he had died of HIV/AIDS. I wished that I could have done something to prevent the cause of his death and I knew that had he been using condoms with his partners, it surely would have decreased the possibility of him contracting the virus. It was through the tragedy of my uncles’ death that I found my business idea, Revalorize Condoms. Initially, the idea was to put my own brand of condom on the market. A brand that would appeal to your normal, everyday type of person. The next step was to find a suitable supplier based in South Africa that could offer me a quality product that was SABS approved, a reasonable pricing structure

and quick, efficient delivery. I searched for a supplier for many months and discovered that not one condom manufacturing company existed in South Africa. Currently, 95% of Africa’s condoms are imported. My first question was, “Why import condoms when my country has a growing employment crisis?”I couldn’t understand why we would take money out of our country to empower another. Why don’t we manufacture locally, ensure that South Africans have a steady supply of condoms, create jobs and supply the government, NGO’S, wholesalers and distributors both locally and internationally? At first, the various contacts that I had made in the industry had told me that it was impossible to manufacture condoms within South Africa and that it was far too complicated to even attempt to do it. In spite of all the negativity, I decided there and then that this could be done, that I would be the one to do it and that I would put absolutely everything that I had into it to make it a success. I had managed to find a massive gap in the market, one that was mine for the taking. Who did you approach to finance your start up? Initially I approached the various financial houses in Cape Town for start up capital. I had no luck with them as they all felt that my idea wasn’t worthy of getting funding. One of the major financial houses mentioned that if it was funding meant for a manufacturing concern that would ultimately create jobs, they would definitely look into it. I then drafted a new business plan with the help of industry experts around the world to include the full manufacturing process of condoms. Thereafter, Brian Smith, my financial director, and I approached various venture capitalists, angel investors and government financial institutions. The initial response was great but it took more than a year before potential funders decided to take my initiative seriously. Raising capital for a start up is quite a challenge as the risk is

always high and minimising the risk is not easy. This is a daunting task especially when you are not yet in operation but need to secure supply contracts to prove that you will have customers when production commences. For 3 years, I did various odd jobs to support myself financially and every cent that I could spare went into research etc until I could eventually get my company off the ground. In the process of getting the business plans finalised and trying to secure funding, we decided to use our own funds and combined this with determination and perseverance. I believe that if South Africa is to create jobs, then the country must do more to support, incentivise and fund entrepreneurs who develop new ideas and who are innovative. It’s been almost 5 years later and we are now months away from setting up our manufacturing and distribution plant. We will be creating 150-200 jobs initially, of which 70% are for black women, thereby contributing to local economic development and manufacturing a capacity of 12 million condoms per month serving both the national and international markets. How did you come up with the name REVALORIZE? The meaning of revalorize is “establishing new value”. Condoms play a critical role in our daily lives as condom usage is the only proven method of preventing the spread of HIV/AIDS, unwanted pregnancies and sexually transmitted diseases. With this in mind, we want our customers to realise the meaning of condom usage by “establishing new value” in what our superior products can do for them by introducing various products that were not previously available to our multi-cultured country. Revalorize is for the user who sees himself as more than the circumstance in an ever developing country where respect for each other and livelihoods are parallel. What is the main goal of your company? The main goal right now is to acquire new technologies and systems that ensure the provision of the highest quality and most appealing condoms on the market and for our clients to establish the real value of protection. We are also in the process of launching the company by creating a presence in the industry via online marketing, television commercials, social networking sites, etc. Revalorize will start its mass marketing campaign in November 2011. For Elton, no hurdle is too great and no task too complicated but a strong mind and an even stronger will to succeed has put him on the road to success. For more information or investment opportunities visit www.revalorize.co.za or contact Elton on 021 447 8908. 73

KWAZULU-NATAL DRIVING THE BUSINESS OF TRADE AND INVESTMENT

POLITICAL SATIRE

Protection of information bill stripped to its soul? Writer Walter Majosi

his is a paradox of democracy, a ridiculous attempt to silence the media! One of the many legacies that the late Kader Asmal left behind is one of objective opinion. Even though some in the ANC did not like it, he stated his opinion without fear or favour. The well respected Kader Asmal made a war cry shortly before his death that the protection of information bill must be rejected. Coming from a man of his stature, this call must be taken seriously. In a ground breaking statement, the Chairman of Pick n Pay stores picked the following words “ The Protection of Information Bill represents precisely such a threat: it not only imposes restrictions on access to government information, but proposes unreasonably harsh prison sentences for those who violate it, refuses to recognise the ethical foundations of whistleblowing, denies a public-interest defence to those who seek to publish wrongdoing, and entrusts the decision as to what should be defined as secret to unaccountable functionaries.” Further to this, Zapiro adds fuel to the fire with another damaging cartoon. He has already been sued “secretly” by President Jacob Zuma for a previous cartoon but deemed it appropriate to do it again, for the sake of defending democracy and media freedom. We salute him for pushing the boundaries even further. Its main ally, Cosatu has also turned their back on the ANC on this issue and threatened with a possible constitutional court action. Many organs of civil society as well as the media are opposed to this bill. Not to mention Nobel Literature Laureate Nadine Gordimers’ criticism on this bill. Can we really afford more excessive secrecy and censorship of political expression? The ANC is not a happy chappy. They have their backs against the wall and Zuma still has the shower on his head, thanks to Zapiro. Their

agenda of secrecy and censorship has been given a serious blow. Perhaps they are thinking that this constitution that originates form people like Kadar Asmal, Nelson Mandela and other serious minded committed South Africans are not such a good thing! If they can have their way, they would like to change or amend it to the whims of the ruling party. Why do they have to be confronted with so many constitutional challenges based on their own making? After all, don’t they represent the interest of the majority of South Africans? A disappointed ANC may want to fight back on this issue in a different manner. We must be on the look out. Tactic one could fail but let us see about other tactics that may come to the fore. At the crux of the matter is FAT CAT protection in the movement. Corruption in government circles has become a norm as we witness daily. Before corruption becomes CLASSIFIED INFORMATION let us stop it! We have the right to know; says the RIGHT2KNOW campaign, when they welcomed the ANC’s concessions on the bill. “It is a first, but important step, which may signal a willingness by democrats within parliament and government to push back against an apparent grab for power by securocrats within the state.” According to the Friederich-Ebert-Stiftung and the Media Institute of South Africa, South Africa’s overall rating for its media environment has decreased. So, we are sliding downwards. Please Right2Know step up your mass action campaigns. It is in all our interest. We just recently came from the dark ages of secrecy in Apartheid South Africa, are we about to go back there? Censorship was the order of the day, are we about to go back there? ANC please tell us! We all want to know!

Irrigation can shield Africa’s farmers from the effects of climate change

armers in northern Ethiopia are struggling under the impact of climate change. Until a few years ago farmers in this hot and dry area could at least count on the occasional moderate rain. These days there is either no rainfall or it is in the form of torrential downpours leading to flash floods. Irrigation has a proven potential to boost levels of agricultural productivity on the continent, as well as address the effects of climate change. Africa is, however, dramatically underserved in terms of irrigation. A 2009 research report by the International Food Policy Research Institute (IFPRI) states that African countries irrigate only about 6% of their collective cropland, compared with a world average of 18%. In sub-Saharan Africa, only 4% of farmland is under irrigation. “The low coverage of irrigation technology and the slow rate of growth in coverage clearly represent a lost opportunity for Africa and a tremendous potential for future investment and policy effort,” said IFPRI. The report also found that African countries produce 38% of their crops (by value) from cultivated land on which water is managed, suggesting that additional investment in

irrigation would pay large benefits. The disproportionate contribution to agricultural production of Africa’s small irrigated area suggests that returns on additional investment in irrigation would be high, both in terms of greater food security for the continent and greater production of exportquality agricultural goods. Drought and unpredictable rainfall patterns caused by climate change increases the need for irrigation. McKinsey & Company notes that even before global warming was a problem, many parts of Africa were particularly affected by droughts, heat waves and floods. As climate change becomes more of an issue, African agriculture will increasingly suffer because of unusual weather. Irrigation companies are looking to capitalise on Africa’s need to irrigate farmland, from providing drip irrigation systems for smallholders to centre pivot technology for larger commercial projects. India’s Jain Irrigation recently concluded a deal with Rwanda to develop irrigation solutions for smallholder farmers. After a meeting with Rwandan Prime Minister Bernard Makuza, the company said in a statement that its goal in Africa, and Rwanda

in particular, is to help farmers establish a culture of using water efficiently and to introduce irrigation technology adapted for local needs. Makuza commented that Rwanda has significant wealth of water but has not exploited this sufficiently for it to become a source of development for the country. Other irrigation firm’s such as Israel’s Netafim; South Africa’s Senter 360, Agriplas and Bosal House of Irrigation; as well as the US-based Lindsay are all eyeing opportunities on the continent. In addition to bringing new areas under irrigation, potential also exists to upgrade current systems operating at less than optimal levels or that have fallen into disrepair. Irrigation is only one of the capital investments and inputs that Africa needs to boost agricultural productivity. Others include fertiliser, advanced seed technology, postharvest processing facilities, and access to markets. However, irrigation stands out strongly among these because of its role in stabilising yields in the face of climatic variability, which has increased notably in recent times and is projected to increase further under almost all future climate change scenarios.

on uti s l fo so r n o Africa i t a g i r Ir Africa’s pivot of success

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

KEY ADVANTAGES OF SENTER 360 • The most effective way of irrigating large areas • Ensures constant high yields • More than 96% water distribution accuracy • Manufactured with high quality materials to very high standards of accuracy • Only the best quality heavy-duty drive train components are used to cope with terrain and ensuring years of reliable service • Senter 360 has the strongest centre pivot span structure available today • We carry high levels of stock to be able to supply when you need it

Tel: +27 (18) 469–1331 Email: info@senter360.co.za www.senter360.co.za

Africa’s pivot of success Since 1994

FINANCE

Why you can’t live without a budget Writer Zak King

o plan for the future is human. From an early age, we identify the things we want, and figure out a way to get our hands on it, whether it is a baby crying for its mother’s milk or an adult lusting after a car. As we age and take on more responsibility, we begin to accumulate more fixed costs. Sure, when you lived with Mom and Dad, you didn’t have to pay rent, and your folks covered all the costs for electricity and water etc. Maybe, as you got older you contributed to the monthly bills once you began working. Throughout it all you were identifying what you needed (and wanted) and were figuring out how to get it. Planning ahead! Since we don’t have piles of money just lying around, we can’t just spend without any regard to when your wallet or purse will run dry. Who has ever been able to buy a house with money they had saved up? Thus the Credit Industry was born, together with all the benefits of getting what we want right now and paying for it later. Don’t forget, we actually DO have to pay later! The National Credit Act, now in its fourth year, has enabled us all to plan better. When we go to borrow funds from a credit provider they now ask you some questions to see if you can actually afford to pay the amount back. So, they will ask you what you pay for accommodation, groceries, electricity and

water, transport and even other debts. This protects them from lending you money you can’t afford, and thus helps you avoid getting into trouble later. It also protects them from lending money recklessly. The NCA carries steep penalties for “reckless lending” by credit providers. How will you respond when asked those questions? Do you know what you have to spend to stay alive each month? Most people would say: “of course”. However, the truth is often very different. For example, have you not been shocked at the rise in your electricity bills recently? Are you also tracking how the increased cost of petrol is affecting your expenses each month? It is good to plan for future increases in your monthly costs. Generally, things get more expensive, not cheaper. Never forget that there are also certain costs that only come around annually. Costs like: buying gifts for family, paying your TV and car licence. Parents know that January is an expensive month with new school clothes, books and stationery needed. If you fail to plan for these expenses, then you will feel the pinch when they come around and you have to reach for your credit card. A monthly budget which takes not only the regular monthly expenses, but also those annual costs into account, will really help. Don’t forget to include in your budget a saving toward unplanned expenses

like doctors’ visits and repairs to your vehicle and appliances. Putting it all down on paper allows you to add up the costs and see if you have enough money each month. If you have enough to cover all your expenses and even save a bit toward your annual expenses too, then you are doing well. If not, beware of simply putting luxury expenses you can’t really afford right now on credit! Use a budget to see where you need to adjust your monthly spending. Focus on your needs first, including your future needs. Once you have funds set aside for those real necessities, then you will be able to add the little luxuries to your monthly expenses. A written budget is not a difficult thing to do; it takes only a few minutes. However, few people like to do it. Why? Well, it is a bit of mental work and because many of us have this bad feeling that if we add up what we are actually spending we might see that we are spending more than we earn. Well, if that is the case, at some point in the near future, an unplanned expense will come along and push us over the edge. So, plan ahead! Rather than viewing a budget as a “pain”, view it as an “essential”, a safeguard to help you avoid nasty financial surprises.

The drive to relocate are down to reactions to the perceptions of crime, governmental instability and poor job prospects

Human Capital Investment Can we keep our professionals Writer Ryan Jared Ali

sentiment about the development of the country, now the research points to a lack of confidence in government. “They are questioning our leaders and their capabilities. They are feeling disillusioned,” said research director Andrea Kraushaar. As a country there needs to be a balanced view of human capital investment, the basic idea of investments are long term returns. In the context of a country, having your professionals leave the country and working in others ultimately strengthens your own economy. As a developing country, there are certain skills where the The reality of professionals leaving application for them is not readily required in your the country is still real as ever. This own country. By having problem is not localized to South your professionals exposed Africa, it is something facing the entire to them, they bring back skills and experience which developing world. they cannot have gained by remaining the country of origin. facing the entire developing world. With an What has taken place with the global ever increasing effect of globalization on economic crisis is that the job market has developing countries, new strategies need to become a much more competitive arena. be employed to attract professionals to return This has led to legislative changes which and stay in their relevant countries. particularly affect countries such as South The drive to relocate are down to reactions Africa where the obtaining of work permits to the perceptions of crime, governmental internationally has proved challenging. instability and poor job prospects. In order Further to this, events such as economic to mitigate the risk of professionals leaving, downturns work in the employer’s favour as which are now sought after globally. It is true people tend to be more risk averse in these that these issues cannot be solved overnight time periods and prefer job security. but progress needs to be made in order to What is not taken into account is the reassure these scarce skills to keep faith in increasingly pervasive influence of South Africa. globalization on skills migration around the This sentiment has also infiltrated the youth. world. In essence, the global village offers A recent study by Youth Dynamix revealed an open market for employment and career that black youths between the ages of 13opportunities to the highly skilled. The term 15 years of age show a percentage of 42 % brain circulation has been used to describe who want to leave at their first opportunity. the increasing flow of professionals around Previous research indicated a positive ost 1994 there was much pessimism as to whether South Africa would result in a land of carnage and chaos. What has taken place since then? Continuous growth and a robust economy which has provided growth and investment opportunities for companies from first world countries facing a serious economic downturn. The reality of professionals leaving the country is still real as ever. This problem is not localized to South Africa, it is something

the world. Ultimately, employers need to approach this on an individual level. They need to realize that employees are not only motivated by monetary incentive. “A recent survey showed that nearly 40,000 job seekers had returned from overseas to re-settle in South Africa, and this number could reach as much as 120,000 as more and more people come to the end of their work contracts.” (www. insurancejunction.co.za) So what is the solution to the brain drain, is there a solution and is it still happening? Well, the numbers indicate that of the post 1994 professionals that left, a large number are returning to South Africa. Yet as we look at the youths sentiments there is once again a drop in confidence in the governments’ ability to deliver a sustainable future. There will always be a risk of scarce skills within a country and to this day, even first world countries face the same issue. Maintaining a fine balance of professionals across a wide spectrum of industries can be a challenging prospect. In order to mitigate the risk of the increase of scarce skills, there needs to be a drive toward getting youths on career paths and developing valuable skills. This can be encouraged by government, incentivising staff development programs and focusing on youth recruitment. The change that the country wishes to see will come about through the collective of government and private business focusing on staff retention while balancing that with employee movement across the world.

JOB CREATION In a climate of Job loss Writer Kendal Brown

he whole world is still reeling from the global economic crises. Like a boxer clawing his way up the ropes on rubbery legs and onto his feet, the world economy claims to be in recovery. But is it? Like a thoroughly stunned boxer, it may be some time before it can fight its way into contention in this latest bout of consumerism versus economy. Everyone wants consumerism to win. It’s what keeps the economy going. But to be able to consume one has to earn. To earn one needs to work. To work one needs a job. And here’s the rub. Not enough jobs. The cry echoes resoundingly around the world “job creation”. Is it being heeded? Can it be heeded? And if so how? Take a look at what’s happening around the world and see what we here in the good old RSA can learn. Is there something we can take from all the advanced economies around the world or do we need to think out of the box, may I be so bold as to venture, ‘think for ourselves’? Well firstly a report on the macroeconomic context for growth and employment noted “ that the persistently high levels of unemployment stand in stark contrast to the recovery seen in several key macroeconomic indicators: global GDP, consumption, world trade and many equity markets had all recovered by 2010, surpassing pre-crisis levels. Despite rapid economic growth in 2010 the global unemployment rate stood at 6.2% versus 6.3% in 2009 and well above the 5.6% rate in 2007.” Does it make sense to you? One just has to ask “Why?” ILO Director-General Juan Somavia noted that “In spite of a highly differentiated recovery in labour markets across the world, the tremendous human costs of the recession are still with us.” More and more affected are today’s youth. Worldwide in 2010, 78 million young people were unemployed substantially above the pre-crisis level of 73.5 million in 2007, but slightly down from 80 million in 2009. Unemployment in

the 15-24 age group was 2.6 times the adult rate of unemployment. Mr Somavia says “Youth employment is a world priority. The weak recovery in decent work reinforces a persistent inability of the world economy to secure a future for all youth. This undermines families, social cohesion and the credibility of policies.” On that matter, on June 28th Cosatu general secretary Zwelinzima Vavi, had this to say in that regard. “Youth unemployment in South Africa could lead to North Africanstyle revolt. It’s youth unemployment... the marginalisation of the youth is exactly the same, if not worse, in South Africa than in Tunisia.” Mr. Somavia sees the one common challenge as being the need to “rethink our standard macroeconomic policy mixes and make quality job creation and decent work a central target of macroeconomic policies, alongside high growth, low inflation and balanced public budgets. We must not forget that for people the quality of work defines the quality of a society.” Africa compared to the world In sub-Saharan Africa, more than three quarters of workers are in vulnerable jobs and four out of five are living with their families on less than $2 a person per day. In North Africa, an alarming 23.6 per cent of economically active young people were unemployed in 2010. The European unemployment rate is close to the highest in more than 12 years. The rate has been affected by government budget cuts in countries from Ireland to Spain, with the result firms have been reluctant to recruit staff. Unemployment in the 27 nation EU remained at 9.6 percent and while the jobless rate declined in eight EU states it increased in 18! Spain’s 20.2 percent unemployment rate is the highest, with Ireland’s at 13.8 percent in December. Greece’s woes leave the panic stricken, virtually bankrupt country, on the brink of anarchy.

So, if the sophisticated countries of Europe and elsewhere are struggling to find solutions where does that leave South Africa with its weird and wonderful first and third world mix? South Africa’s GDP forecasts are still only a fraction of the 7 percent growth the government admits is needed to make a dent in unemployment which at present affects more than half the adult population. Add to this the manufacturing sector, the second biggest contributor to GDP, was on the mend it was still struggling to create jobs. What the Government hopes to do The government’s New Growth Path aims to create five million jobs by 2020 and bring South Africa’s unemployment rate down to 15%! Six priority areas have been targeted in a bid to create more jobs. Infrastructure development, agriculture, mining and beneficiation, manufacturing, the “green” economy, and tourism. A R9billion jobs fund to finance new job-creation initiatives over a three-year period will be complemented by R10-billion to be set aside by the Industrial Development Corporation (IDC) over the next five years for investment in projects with high job-creation potential. R20-billion in tax allowances and tax breaks to promote investments, expansions and upgrades in South Africa’s manufacturing sector are also on the cards. The government continues with legislative reforms to make it easier to register businesses, and strengthen the Competition Act to open the market to new participants. Additionally South Africa’s Expanded Public Works Programme aims to create 4.5-million work opportunities, and pointed out that more than a million opportunities have been created already since the beginning of phase 2 of the programme. There is only one question. Will it be enough and soon enough?

OTTC rocks! OTTC Diploma Project. How we tackled a true classic with new technology. When we received Lionel Huntâ&#x20AC;&#x2122;s CD of his Elvis Presley impersonation, we were struck by the white, dazzling suit he was wearing and we made the decision to build our own Elvis out of copper and freeze him up, to get his suit white. Now we had to put this idea into practice. It was not an easy task to do. The project had to be built by the OTTC candidates within the time allocated to complete the other prescribed tasks for their Diploma Courses. It was a bonus project to practice cutting, welding and brazing techniques as well as 90

getting the dimensions right. All OTTC learners attending the Metal Basic and Pipe Installation Courses during this time participated in the project regardless of age and qualification. Secondary Cooling Technology was then used to freeze Elvisâ&#x20AC;&#x2122; pants. This is OTTC teamwork where every-body took part. Isolde Dobelin (Director) had the idea; Peter Potgieter (Instructor Metal Basic and Installation) designed and built the body with the students. The technology to freeze Elvis was designed by Peter Hoetmer (Principal, German Master in Refrigeration and Air-Conditioning)

together with Arne Pedersen (Marine Engineer, Instructor, Refrigeration Theory and Practical), Arrie Manuel (German Master in Electrical, Instructor Electrical and Controls), Chris Hoenkhaus (Dipl. Engineer Facility Management, Instructor higher theory for OTTC Technical Diplomas) and of course all of the OTTC learners. To make the OTTC Diploma Graduation complete Lionel Hunt did a live performance of his Elvis repertoire, to the applause of the huge audience!

For decades industry and other sectors were responsible for their own training. The apprenticeship system worked pretty well and they took on people that wanted to do the job

Skills & Training Sustaining the infrastructure Writer Kendal Brown

n looking at this question of sustaining the infrastructure of South Africa’s skills and training efforts, I am reminded of two quotes. It’s from a rather renowned thinker whose opinion will always carry some weight I think. Albert Einstein said something to the effect that ‘you cannot solve problems with the same thinking that created them.’ The second, I have no idea who coined it, but it seems to have come from the heart of a very ordinary but wise man. “If it ain’t broke, don’t fix it.” Now before I launch forth with whether the skills and training infrastructure can be maintained, let me relay what the Department of Trade and Industry’s Codes of Good Practice for Broad-based Black Economic Empowerment requires. It requires organisations to promote skills development to ensure an adequate supply of skilled individuals within the broader South African economy. That being said, let battle commence.

under whose guidance they fall. The said person is Minister Blade Nzimande who despite saying recently that there were no losers in his legal battle with members of the previous council of the Services SETA, certainly went a long way to undermine confidence in their ability to fulfil their prescribed role. The DA has called on the Minister to “release his heavy hand from the various SETA boards and stop trying to intervene in their affairs. He needs to accept responsibility for the breakdown in communications and trust that now characterises his relationship with the Services SETA.” What this points to is the fact the whole SETA thing is not really working is it? And the reason might well be that what exists is a top heavy, bureaucratic arrangement which is not actually well equipped enough to take the lead in the various sectors they govern, simply because they don’t know enough about them and are only bureaucrats.

You cannot solve problems with the same thinking that created them The whole SETA system, which appears to be largely responsible for achieving this undertaking, seems to be under fire from all angles. From the sectors themselves and unhappily for them, from the very person

If it ain’t broke, don’t fix it For decades industry and other sectors were responsible for their own training. The apprenticeship system worked pretty well and they took on people that wanted to do the job. Why not return to that system. It worked and turned out people who were

competent and well trained in a number of fields. A few changes should be introduced like speeding up the process by lopping off 2 or so years of the apprenticeship and also giving recognition to qualifications through certificates equivalent to those of tertiary institutions. Also please take into account this statement by Dr. Nzimande that while South Africa is “experiencing dire shortages of artisans, technicians and other professional, more than 90 percent of the money in the hands of SETAs was spent on short courses.” If the industries assumed the responsibility for training and skills within their own domains then perhaps they would be more forthcoming in doing that rather than being dictated to by a SETA whose incumbents know little or nothing about their industry. Perhaps the ‘incumbents’ fear that they will also then have to join the masses of the unemployed. Not necessarily. A new role for the SETAs could be simply as an outside organisation to see that industry was indeed creating the skills and training required and helping (not hindering) them to do it in as streamlined and effective way as possible. So, is the infrastructure sustainable? From what I read in the press and my own observations... no.

Skills Accords give push to New Growth Path Private Bag X9047, CAPE TOWN, 8000 120 Plein Street, 15th Floor, CAPE TOWN Tel: (021) 466 9800 Fax: (021) 461 0428

Writer Professor Richard Levin, DG Private Bag X149, PRETORIA, 0001

77 cnr Meintjies and Esselen Streets, DTI Campus, 3rd Floor, Block A, As a result of these discussions between High unemployment is costly for the Sunnyside, PRETORIA organized labour, well-being Bag of any society. It is especially Private X9047, CAPE TOWN, 8000the private sector, Tel:often (012) community 394 1006 organizations and the challenging for poor households which 120 have Plein Street, 15th Floor, TOWN Fax: 394 0255 government, the first two major accords were to support unemployed members of (012) the CAPE

signed466 in July,9800 2011 at the Union Buildings Tel: (021) in Pretoria. The National Skills Accord Fax: (021) 461 0428 (Accord 1) and the Basic Education and

family. The government’s New Growth Path released in November 2010 has placed employment creation at the centre of its economic vision for the country. The success of this policy will be measured Accord01skills6.indd against the extent 20 it is able to meet its target of creating 5 million new jobs by 2020. While economic growth will be important, it will not be the sole determinant of the country’s economic health. Sustainable jobs that can dignify the lives of all South Africans must be the foremost priority. In order for the job creation targets to be met, large-scale efforts will have to be made to train people and ensure that their skills are upgraded. The reality is that the bulk of those who are presently unemployed are unskilled or semi-skilled. They can best be absorbed into labour-intensive activities. Industrial policy and other economic initiatives are being aligned with rd01skills6.indd 20 other policies to directly support more employment-intensive growth. At the same time, intense discussions are taking place between government and key social partners to formulate how current challenges are to be resolved.

Partnership with Schools Accord (Accord 2) identified key commitments to improving the development of national skills and improving schools. Some of these commitments will see up to 30 000 new artisan trainees enter training this financial year, 31 % in government, 13% in state-owned enterprises and 56% in the private sector. They will also see about 12000 placements and internship spaces made available by business each year for further Education and Training College students to complete the on-the-job training they need to gain their certificates. There will be 5000 internships for third-year University of Technology students to do the same, for their degrees. The trade unions have promised to work with the government to improve the quality of education. Under the Basic Education Accord, up to 200 schools will be adopted and improved this year and up to 1000 next year. The accords that are presently under discussion include a Draft Local Procurement Accord, a Draft Accord on the Green Economy and a Draft Accord on Enterprise

Private Bag X149, PRETORIA, 0001 77 cnr Meintjies and Esselen Streets, DTI Campus, 3rd Floor, Block A, Sunnyside, PRETORIA Tel: (012) 394 1006 Fax: (012) 394 0255

Development (including small business and the social economy). Discussions are also taking place on how to remove red tape and how to intensify savings and investment. These Accords will be made public as soon as social partners reach agreement on the terms. Crucial to all these initiatives is for the social partners to develop a mutual understanding of the role of different sectors in making 7/21/11 10:38 A the economy work and for all the different elements to work in concert. Accord 1 and Accord 2 have been signed on behalf of · Organised Labour, comprising of COSATU, FEDUSA AND NACTU, represented by Zwelinzima Vavi, Dennis George and Manene Samela · Business through Business Unity SA, represented by Futhi Mtoba · Community constituents at NEDLAC, comprising of organisations of women, civic structures, youth, people with disabilities, cooperatives and the financial sector campaign, represented by Lulama Nare · Government, by Dr Blade Nzimande, Minister of Higher Education and Training and Ms Angie Motshekga, Minister of Basic Education. For access to Accord 1 and 2, go to www.gov.za

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Cape Town Private Bag X9047, Cape Town, 8000 120 Plein Street, 15th Floor, Cape Town Tel: (021) 466 9800 Fax: (021) 461 0428 Pretoria Private Bag X149, Pretoria, 0001 77 cnr Meintjies and Esselen Streets, DTI Campus, 3rd Floor, Block A, Sunnyside, Pretoria Tel: (012) 394 1006 Fax: (012) 394 0255

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Skills & Training Industries take charge Writer Lee-Anne Richards

kills development and in general, human capital development is at the heart of boosting the South African economy. Accords and memoranda of agreements are being signed between government and various companies to realise some of the core aspects of the New Growth Path, which aims to create five million jobs in the next decade. The lack of skills makes

it more challenging to place the unemployed into meaningful and self-sustainable jobs. Training people towards enterprise development is also a key area – the creation of entrepreneurs. Many businesses have undertaken to spend above the 1% of their total company salary bill on a voluntary basis to improve on skills development and will monitor the deliverables on an ongoing basis. Microsoft South Africa signed

a memorandum of agreement with the Department of Science and Technology to “fast-track high performance computing, human capital and enterprise development in the country.” (Source: Bua News) The programme will focus on increasing participation to students from previously disadvantaged communities. The programme also seeks to establish world-class research infrastructure at science councils and higher education institutions. Partnering of this nature will create a more enabling environment for ICT in South Africa and will address innovation and business skills with the students on the programme. Students will be given real global challenges and with the skills obtained will be able to make a difference in the world. The stakeholders on this project are government, training providers, academic institutions and NGO’s. Woolworths also embarked on taking some unemployed youth through its Woolworths Growth Academy in conjunction with the University of Stellenbosch Business School.

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This was a 12 – 18 month programme and the students completed and received an executive education certificate from Stellenbosch University. This programme was also geared towards the historically disadvantaged. The Wholesale and Retail Seta partnered with Woolworths on this programme. Woolworths is hoping to offer all of the candidate’s full time employment. Mentoring by industry experts was a key ingredient in this programme and the students were also given challenging assignments that made them explore beyond the boundaries of every work life. The SETA commented that it was a great success and that there was a +-95% completion rate.

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Eskom Academy of Learning was also established to train new recruits and to impart the skills necessary to realise the infrastructure investment programme. The academy will partner with relevant tertiary institutions as well as other service providers. The Academy is geared to develop the technical skills, e.g. technicians, engineers, artisans, etc. and will develop them in terms of project management, leadership and finance. Eskom is currently training over 5200 learners in the technical fields. They are earmarking to have 2500 learner artisans per year. Transnet is also training engineers and artisans and awards R144 million per year in bursaries for artisan training. Bursary holders get job placements at Transnet operations after studies are completed. The Samsung Electronics Engineering Academy was also launched to address the shortage of technical and engineering skills in South Africa. The Academy aims to “transform communities through education and skills development and in return open up skilled, well-paying job opportunities for individuals”. (Source: Staff Reporter) Samsung is partnering with Technical High Schools in the Ekurhuleni area and is open for students from grade 10 – 12 learners. The students will be equipped with practical experience as business skills. On completion of the courses, students will have the opportunity to compete for internships at various Samsung plants. As can be observed, skills development and training are key areas of growth that are not only realised by government but also by major companies in building South Africa’s stability and economic viability.

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EDUCATION

Bridging the rich poor information gap Writer Libby Norton

ow will we usher the poor in information into mainstream knowledge? IT access for Africa has been said to be ‘an invitation for the world’s majority to access all of human knowledge as equal participants in the global conversation, while having the power to modify systems to match their needs’. That’s powerful motivation. Globally, South Africa has one of the widest divides in the rich-poor information gap and it’s most evident in the technology area, but by its very definition it must also allude to

access to education and libraries. In light of South Africa’s eleven official languages, the international English language domination of information technology is a problem. It’s hard enough for English speakers getting used to mice without eyes and software that’s not soft without also having to battle with it as a second language. There are NGOs and organisations working hard to introduce dedicated hardware for children with satellite access and others translating software into the many languages of South Africa but they are only scratching the surface of need. Even where there is

signal, computers are just too expensive for those hungry for knowledge. Until IT access becomes significantly cheaper, the mammoth task of bridging the information gap will fall to education and libraries. National library spokesperson Andrew Malotle says a national priority is to promote a culture of reading, and more than a billion rand has been spent on community libraries since 2007. Libraries are the primary source of reference and self education. Last year, over ten thousand people marched in Cape Town for libraries in all schools as only 8% are fully functioning. The 2011 Annual National Assessment (ANA) results only provided proof of how the South African education situation has worsened and the recognition by government of a need to reverse gears on Outcomes Based Education, (OBE) could not come soon enough. Our inflated matric results ushered hopeful youth into universities, but left behind a trail of disappointment in the failure, dropout rates, and in graduates surprised finding themselves unable to read or write well enough to hold down decent jobs. However, government does seem to have learned from previous experience having changed direction in education once before and instead of chucking the baby out with the bathwater again are re-focusing where specifics require new direction to achieve the biggest chance of success. However, analysts are still sceptical, regarding the quality and moral fibre of the South African Democratic Teachers’ Union as being a core problem. African Christian Democratic Party spokesperson on Education, Cheryllyn Dudley, said in the Budget Vote in Parliament that South Africa will never have the teachers and managers needed if the union stronghold is allowed to prevent a culture of dedication and hard work. But teachers say there is new enthusiasm in the faculty with a dynamic for all to become the best they can be. There has been considerable preparation for the implementation of interventions for adults and children and observers are hopeful that the new teachers’ packages, with work books described as ‘phenomenal’ for simple and easy instruction, will make a big difference. While the IT world waits for no-one and the technology river races on leaving another generation of South Africans on the far bank, they may not be completely stranded; I.T. is proving to be contagious. With gogos drawing money and making the most of their cellphones along with every teen from Mitchell’s Plain to Messina, technology may yet span its’ own gap.

Higher education and sustainable development in Sub-Saharan Africa Writer Prof Pundy Pillay, Graduate School of Public and Development Management, University of the Witwatersrand

t is well known that education in every sense is one of the fundamental factors of development. No country can achieve sustainable development without substantial investment in education. However, the converse is not always true – not every country that has invested in education has achieved sustained patterns of development. Education impacts on development in several ways, through its effect on labour productivity, poverty, trade, technology, health, environmental management, income distribution and family structure. Education provides a foundation for development, the groundwork on which much of our economic and social well being is built. By increasing the value and efficiency of their labour, education helps to raise the poor from poverty. It increases the overall productivity and intellectual flexibility of the 100

labour force. It can help also to ensure that a country is competitive in world markets now characterised by changing technologies and production methods. By increasing a child’s integration with dissimilar social or ethnic groups early in life, education contributes significantly to nation building and interpersonal tolerance. In sum, the effects of education on sustainable development are both deep and extensive. While the role of education in development is generally acknowledged by African policymakers, there is at best a lack of clarity about the role of higher education in particular in enhancing development (that is, economic, environmental, and social development) in poor countries. Higher education in Sub-Saharan Africa (SSA) is characterised by extremely low participation rates (only 5-6% of the relevant age cohort compared to an average of 25%

in developing countries). In addition, most SSA countries are faced with a number of challenges to deliver quality higher education. These include: • Coping with surging numbers in the face of declining funding; • Deterioration of infrastructure due to lack of maintenance funds; • Insufficient remuneration of academics, leading to loss of innovation and brain drain; • Student imbalance between science and technologybased programmes on the one hand, and arts and humanities on the other; • Gender inequality and regional imbalances with regard to access; • Insufficient attention to, and insufficient resources for research; • Lack of well qualified managerial staff for administering institutions of higher learning; • An expanding private system which is poorly regulated and often providing education of sub-standard quality; • A looming threat of being cut off from sources

medical schools, agricultural centres, salaries, and a greater ability to save and of, and participation in, global knowledge telecommunication and technological invest. These benefits may result in better creation and distribution due to the digital development, business training centres, health and improved quality of life. gap; • Making curricula more relevant to vocational and skills schools, and other areas However, it is likely that the social benefits of local needs; and • Generally inadequate, included in the tertiary education sector – higher education may have been consistently inefficient, and inequitable patterns of public areas critical to the development of African under-estimated. Recent evidence suggests financing. societies and economies. that the public/social benefits of higher Higher education in Africa thus raises some What can SSA governments do? Most SSA education accrue as a consequence, inter important challenges for policy makers. governments find themselves in a difficult alia, of the creation of greater tax revenue, Access and equity are at the top of these position with regard to increasing funding increased savings and investment, and the challenges. Second, there is a trade off for higher education because of competing development of a more entrepreneurial and between quantity and quality. Third, there is demands in primary and secondary education civic society. It can also improve a nation’s the challenge of reaching a graduate mix that and in other social sectors (such as health, health, contribute to reduced population is compatible with labour market needs and nutrition, and water and sanitation). growth, improve technology, strengthen national development. Nevertheless, there is much that these governance, and ensure better management Moreover, the challenge of changing the governments can do to improve the of the environment. composition of outputs from the higher efficiencyopened and equity current patterns of One possible channel through which education system entails mobilising The Graduate School of Public and Development Management, originally byofHonourable funding including the following: higher education can enhance economic additional resources to higher education • Ensure better utilisation of current public development is through technological specially but not only in the science and public disciplines. policy andFinally, development sector resources with respect to outputs and catch-up. In a knowledge economy, higher technology there is management. outcomes of higher education institutions education or more broadly, post-secondary another important challenge that calls (that is, encourage improved efficiency of schooling, can help economies gain ground for a balance between transmitting the expenditure). on more technologically advanced societies information and skills needed for the labour policy and development fields inasSouthern and beyond. The graduate school • Greater efforts need is to involved be made to in ensure graduates areAfrican more likely to be more aware market, fostering innovative and creative that the poor and women benefit from public of and better able to use new technologies. talents, and developing broad intellectual funding of higher education. Currently, in What all of this suggests therefore is a capacities amongand higher education students research development support. almost all SSA countries, public funding of renewed emphasis on investing in higher and graduates. higher education is dramatically skewed in education. African higher education There are several reasons why poor (SSA) favour of the upper- and middle-classes, and development thus must be at the heart of countries invest in higher education. OURshould DEGREES INCLUDE: males. the continent’s sustainable development First, globalization is bringing the world • Masters in Management in the field of Public and Development Management • Ensure better regulation of private sector processes. Only higher education institutions closer together and at the same time • provision of higher education so that the canthe provide the human capital Policy necessary to changing the traditional of economic in • Masters inpatterns Management field of Public low income groups (who constitute a large ensure the good governance which lies at growth and development. In contrast to Masters in Management of Social Security proportion of those who access private thethe core field of the solution to Africa’s greatest the •“(consecutive) stages of economic in higher education) are offered a much higher challenges, from health to business, science growth” that characterized the economic • Masters in Management in Security Studies • development degree of protection against exploitation and technology, teacher training and the of today’s industrialised than is currently the case. environment. countries, globalization is allowing countries In summary, the relationship between higher Until the mid-1990s, higher education or at least regions within countries, to • “jump” education and sustainable development is development in Africa was largely treated stages of development and/or grow • Public Policy and Management often misunderstood and/or understated in as an outlier, as the majority of education various stages simultaneously. The co• Social and Economic Scenario Planning and Modelling African context. In a rapidly globalizing development projects focused on the existence of subsistence agriculture and • high-technology sectors in countries such as primary level (which, in large part, is still the the context, the patterns of development are changing dramatically from the historical pattern). International donors and partners Brazil, China, India, and South Africa attest pattern of the 19th and 20th centuries. This largely regarded universities as institutional to this. Higher education assumes a key role • Local Economic Development implies a much more important role for enclaves without deep penetration into the in this “globalized” pattern of development • Governance, Leadership and Management higher education to enable poor countries development needs of African communities. enabling countries (or at least regions within • increasingly Development Management of Local Government educational to “catch up” with middle- and high-income Such compartmentalised them) to ‘skip’and traditional stages of development. • Public Finance and Fiscal Policydevelopment strategies, however well- countries. This in turn suggests a much higher level of investment in the higher education intended, led to development policies Second, recent evidence suggests also that sector across the continent if we are going that had severe negative consequences higher education can produce both public to be able to reap appropriate dividends in for African communities and economies. and private benefits. The private benefits terms of sustainable development. Neglect of higher education led to the for individuals are well-established, and disenfranchisement of research centres, include better employment prospects, higher

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TECHNOLOGY

Technology’s role in infrastructure and economic development Writer Louis van Zyl

o we as citizens ever stop and think to what extent our daily routine activities, including social and business, depend on the use of technology? Think of your average daily routine and make a list of all the technology “devices” you use to perform all of these actions. Without technology how do we live, work, socialize, earn an income and especially communicate from within a household as far as globally? How dependant is the improvement of our infrastructure & economical development on technology? What is it costing us? The current rate of infrastructure and economical development versus the financial impact on the economy resulting from the expenditure. The first and most important role of technology in infrastructure and economical development we should look at is “what we get out from what we put in”. This is what calculates the efficiency of what is probably the biggest expenditure in our industry today. Billions can easily be spent on the most advanced emerged technology but not properly implemented and managed causing ineffective results with major overspending. Important questions we should ask ourselves before investing into any future technology development include: What is infrastructure? What and who are the sources and ownership of this infrastructure. Who are all involved and what costs can be shared? Today the interoperability of technology amongst markets, companies, countries in global but also small independent suppliers are challenging because of combined voice, video and data services required to be delivered over increasingly complex networks. The implementation of technology should therefore be managed with great consideration to ensure effectiveness and comparing costs. 102

What effect does technology have in the “fight against unemployment and poverty”? Technology will and has always been a major role-player in creating employment and security for all. Yet in our modern-day world the impact that Information Technology has on unemployment is what gives us most hope. Let’s just think of the growth in mobile phone and public service facilities over the last couple of years in South Africa. ICT is unthinkably the area that creates employment opportunities faster than no other. As exciting as this is there is still no reason to sit back and accept our unemployment and poverty issue to be solved. People in rural areas are still in a position of being illiterate, lacking physical assets and no access to financial services. Further challenges include exclusion on grounds of rural isolation, language, religion or gender leaving us all as part of a nation with a lot of thinking to do. The good news is we know in what area of technology to concentrate on to ensure growth in quality of life through effective financial implementation thus job creation. Another great advancement not only in SA but around the globe is the role that information and communication technologies play in improving gender equality. Women “at home” are in a better position to educate themselves in the ICT sector and are increasingly obtaining employment in all ICT areas. How do we compare to the rest of the globe? We as South African citizens tend to believe our country to be way behind in technology compared to the rest of the globe. SA has yet, despite many political and economical challenges, advanced tremendously in the last twenty years. Yes we are not on the same level than many foreign countries but must also ease our minds that this is only the case compared to other developed

countries. Compared to other developing countries we are at the top of the list. Also, keeping in mind that we have all the recently developed communication access which globally integrates people in all corners of the world. All we need to do now is make access to all citizens as cheap and affordable as possible to ensure open communication and information sharing. Other than that we know that training and education are directly connected to our infrastructure and economical advancement. We need to ensure that our universities are open to international standards to ensure competitive globalization. To what extent should the everyday citizen spend on technology? We as citizens, in difficult economical times, need to control our spending on technology to suit our needs and joys. Yes, but how? Actually it’s quite simple. Decide what you need or want the item to do for you, consult a professional’s advice related to that field and buy what results from that. If you need a computer to enable you to type letters but purchase a top of the range PC with all its “fancies” you will be wasting grocery money. To ensure efficient spending on technology also includes making sure the usage of it is controlled. For technology to help us grow we should not just have it but also utilize it correctly. This includes training and familiarization before and after purchasing. Let’s continuously consider the advantages and disadvantages of technology operations in this amazing developing country and always control it. Can we say that we as a nation are on the right path in controlling technology’s role in infrastructure and economical development and what can we do to ensure that good always comes from it?

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TECHNOLOGY

South Africa’s switch to digital technology

et’s first familiarize ourselves with what this means. Switching to digital technology means that the transmission of the old analogue TV signals are being converted to digital signals. Audio and video equipment now also entail digital operation as to the old mechanical electronic technology. This conversion is necessary to allow more “space” for signals in the atmosphere enabling a more efficient use of radio frequency. What does it involve? The old way of television broadcasting needs to be looked at to allow the poorer communities to afford all of the advanced and new technology available today. We also need to understand that technology advancement has its costs. With all the additional channels and other increased “frequency based” technology growth the “air” fills up with signals. They eventually tend to start interfering with each other. The new digital signals are much more advanced and use a lot less “space”. This can be compared to one digital video channel utilizing the same bandwidth (space) than eight analogue video channels. This does mean that your old analogue TV will not be suitable anymore so it either needs to be replaced or connected to a purchased set-top box. How much is it going to cost (for the economy and individual)? In 2008 the set-

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top box were targeted to roundabout R700 each. This could now be higher and quite unaffordable to many South Africans but announcements made by ministers have included the planning of subsidised boxes to poorer communities. More positive outlooks include that the “cut-off” date for changeover will not be in the immediate future giving people time to prepare financially. Also, keep in mind that most current bought television sets are already compatible. Nobody knows for sure what this migration process will cost the country as a whole at this stage but according to Mr Roy Padayachee, Minister of Communications, the benefits will outweigh the costs. What are the advantages and disadvantages? The two important concerns we have as everyday citizens concerning this migration project is how it will affect us as “consumers” and what benefit this will be to our ever loving country. I don’t think we should worry! Consider the benefits already in mind. Better quality, operation, easier and more accurate recordings, lower operating costs, no loss of quality in worst circumstances, more “free” channels are not even all of the advantages we can look forward to when utilizing digital systems. Big, bulky equipment consuming more power and “wearing off quicker” will soon be something of the past saving costs on both sides on the long run and making our everyday lives much easier and even more

Writer Louis van Zyl

fun. To not even look at the huge employment created in production. Disadvantages, like huge capital outlay and other forever feared issues like “having to change” are therefore no argument against modernising ourselves and thus living better and easier lives in future. When will it happen and be completed? We don’t always notice this but the migration process of switching over to digital technology has been happening under our noses for a number of years. Are the cameras, video recorders, car audio systems, television sets and many more technology items we purchase still old analogue? Do we still take film spools into film shops for development? We are already living in a “digital world” and should look at how “easy” life has become today which can only leave us smiling about the process. The final date of complete digital TV broadcast changeover has been postponed numerous times from 2008 due to the huge complexity involved in this process. Yet this should not be looked at as a stone in the road to living in a more modern society. Look what we’ve achieved up till now despite not so easy times in SA in the last decade. Before we concern ourselves about “is this necessary and can we afford it”, let’s look at all of the milestones reached so far. We should once again be proud and excited about our progress as a nation and keep up the good work.

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TECHNOLOGY

The economic importance of design innovation Writer Marc Ruwiel

ews reports earlier this month revealed that South Africa’s manufacturing index declined in 3 out of the last 4 quarters. In fact, South Africa’s manufacturing sector has shown steady decline over the last 4 years. We are manufacturing less and exporting less. In the press, the usual suspects are blamed for this decrease: the international economic crisis, a currency that is too strong and a labour force that is too costly and inflexible. While these reasons are perfectly valid, I feel that there are deeper causes that have as much influence. South Africa does not design enough. South Africa does not innovate enough. South Africa does not spend enough time, energy and resources on research and development. Without innovation and design, we cannot expect manufacturing and our economy to grow, no matter how weak the Rand is or how inexpensive labour might be. We have far too few companies and individuals trying the untested and creating new and innovative technology. Mark Shuttleworth is seen as a shining example of a successful South African technology entrepreneur. While it is 106

good to have such a role model, we should have tens or hundreds of his ilk to ensure an increase in manufacture and the economy. This is one good reason why Cape Town’s bid to be the World Design Capital in 2014 is so important. The importance of design as a stimulation for growth needs to be understood by everyone active in the economy. Cape Town’s bid committee are doing an excellent job, and Cape Town has been shortlisted as one of 3 cities, along with Dublin and Bilbao. It is my hope that Cape Town’s bid to be the World design Capital in 2014 brings design as an important issue to the forefront of our daily consciousness. South Africans need to understand the importance of design, not just as a way to create pretty objects, but as a real driver of the economy. Naturally the WDC bid is not only about economic impact. Design should serve to improve our daily lives on many levels. In the press release announcing the shortlist, Dilki de Silva, Icsid Secretary general states that these cities “managed to convey the impact of these on the various aspects of social, cultural and economic life, as well as provided three very unique visions for how design will continue to reinvent their urban landscape” Cape Town needed to demonstrate that we possessed “the expertise, infrastructure and financial capabilities to successfully develop and implement an inspiring year long programme of international design related events, promoting design, as well as their city, on an international stage.” Finally we need to show how the Capetonians have and will continue to benefit from their citys achievements in design Using design techniques to help solve seemingly non design related issues opens up lateral thinking and paradigm shifting approaches to problems. We need to foster a tolerance and an acceptance of

experimentation and thinking outside the box in order to address our constantly increasing complex social challenges. A design orientation will humanize solutions, whether these are in transport, housing or products. By supporting the Cape Town bid, I hope that government, the city, business and the general population learn to foster a culture of innovative design. We need to open up and allow exploration and experimentation and allow the time and resources that these require. In Cape Town, companies like dddXYZ, Retief Krige, Ideso Industrial design solutions and a few others all do excellent work in designing new and innovative products. These companies are a catalyst for economic growth, but really there should be many more to have a meaningful impact on the economy. It is essential that we start designing our own products again, and manufacture and export them, rather than importing products designed and manufactured elsewhere. One can only hope that Cape Town’s bid acts as a seed to start this much needed growth in innovation and design. Given the right environment and focus, there really is no reason why the next “Apple” should not be a South African company. About the author: Marc Ruwiel is the head of design and owner of Ideso, one of South Africa’s leading Industrial Design Companies. He qualified with a B.Eng in industrial engineering at the University of Stellenbosch in 1988 and received NHD in industrial design (cum laude) from the Cape Technikon in 1996. Since founding Ideso in 1998, the company has designed over 400 products for clients ranging from entrepreneurs to global corporations. For more info, visit www.ideso.co.za

TECHNOLOGY

A wolf in sheep’s clothing Subaru Forester S-Edition Writer Brent Smith

apanese transport conglomerate, Fuji Heavy Industries, commenced the manufacturing of Subaru cars in 1954, with numerous performance and dual terrain models rolling off the production line since the marque’s inception. In 1997, the Subaru Forester was introduced, which, at the time, was essentially a station wagon featuring an all-wheel drivetrain, swift performance and solid reliability. Having grown in stature yet still as reliable as ever, the third generation Subaru Forester, which made its local debut last year, is now a stylish crossover (although

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commonly referred to as an SUV) and undoubtedly the finest Forester ever. Among the numerous enhancements in the latest offering is the choice of three new Boxer engines: The 2.0-litre DOHC diesel, the 2.5-litre DOHC petrol and the 2.5-litre DOHC turbocharged petrol engine fitted to the hugely impressive range-topping Forester S-Edition, the subject of our topic. Although the S-Edition retains the relatively conservative, yet attractive, Forester design, there are a number of telltale signs which hint at the fact that this is no ordinary Forester. The sporty STI-style 17-inch alloys, subtle

body kit, the prominent air intake on the bonnet and twin exhausts - all direct one’s attention to what lurks beneath the bonnet. Derived from the Impreza WRX sedan, the 2.5-litre turbocharged and intercooled horizontally opposed flat-four Boxer petrol engine is a latest-generation design, featuring variable valve timing, 16 valves and electronic fuel injection, and offers reduced internal friction, high efficiency and low maintenance costs. Under ‘restrained’ circumstances, the S-Edition displays all the traits of a mildmannered luxury SUV crossover. General

driving is smooth, comfortable and effortless. Gear changes are slower than dual-clutch designs and wide-spaced gear ratios mean you may feel slight turbo lag. However, get ready for a heart-pounding experience when you put your foot down... after a moment’s hesitation from the auto transmission, perhaps implying “Are you sure you want to do this?”, all hell breaks loose! The unprotesting 1.5-ton Forester lunges forward at an abrupt, almost ridiculous pace, thanks to a maximum power output of 193kW at 6 000rpm and 347Nm of torque from 2 800rpm going to all four wheels. Wiping the smile off your face after experiencing this unexpected but rather gratifying sports car behaviour may be somewhat tougher than doubting Subaru’s plausible performance claims - zero to 100km/h in 6.5sec, and a top speed of 228km/h. Subaru’s symmetrical all-wheel drive system, powered through a five-speed automatic transmission with shift paddles mounted on the steering column, varies the torque split between the front and rear axles, providing plenty of grip during acceleration and in the corners. Utilising the shift paddles

in sport mode adds to the enjoyment of the Forester’s performance, but is by no means a necessity in order for you to feel the full fury of this beast. Simply leave it in drive and hold on! Although a hint of understeer is apparent during high speed cornering, most driving enthusiasts will thoroughly enjoy the communicative steering. There’s a lot less body roll than you might expect, considering that ride quality is supple enough to effectively minimise bumps and smooth out the effects of uneven surfaces. The front and rear independent suspension provides an excellent balance between rigidity and response. Along with the increased ride height, this makes the Forester great to drive on dirt roads too. Safety features include front, side and curtain airbags, ABS-controlled brakes, and ESP stability control. Long distance travelling fuel consumption is a fair 7.9 litres/100km. However, the S-Edition becomes rather thirsty around town, averaging 14.8 litres/100km during stop-start travel. Combined consumption is 10.5 litres/100km, and carbon emissions

are 248 g/km. The cabin interior is spacious and solid, accommodating five adults comfortably. It features bolstered twotone Alcantara-covered sport seats and a comprehensive array of standard gear which includes cruise control, remote central locking, climate control, electric windows, mirrors and seats, a seven-speaker sound system and iPod connectivity. Plasticky console trim may be a sore point for some. While the boot offers 450 litres of cargo space, folding down the split rear seat will increase load carrying capability to a prodigious 1 660 litres. The Forester S-Edition is therefore an outstanding example of versatility - a practical family vehicle with plenty of comfort and space for holidays and everyday commuting, while at the same time a sure ‘fix’ for most petrolheads, whether it be on tar or gravel. At a retail price of R449 000, it competently tackles the competition headon. A three-year / 75 000km maintenance plan, along with a three-year / 100 000km warranty comes standard. Service intervals are every 15 000km.

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TECHNOLOGY

Samsung Galaxy S II Writer Mark Rosenberg

he first thing you will notice when you pick up the Galaxy S II is how thin and light it is. It feels good in your hand, also less plastic-like like previous generation Galaxy S phones. It’s like you’re holding an expensive piece of technology. The face is made of Gorilla Glass, which is the same scratch-resistant glass the Apple iPhone 4 has. The phone measures in at 124 mm tall by 66 mm wide by 7.6 mm thick, the Galaxy S II is remarkably thin. But the 4.3 inch display still takes up a lot of space in your pocket or handbag. Nevertheless at 113 grams, it’s comfortable to hold for long periods of time. The display is gorgeous, one of the best I’ve ever seen. It uses Samsung’s Super AMOLED Plus display technology. Colours look bright, details crisp, and the viewing angles very good. Even in direct sunlight, the display remained visible. The Galaxy S II comes with the latest version of Android, version 2.3 aka Gingerbread. It runs a Samsung built overlay, TouchWiz 4.0 simultaneously. TouchWiz 4.0 isn’t much different from the previous version, but there are a few enhancements The Galaxy S II went here and there. With TouchWiz 4.0 on to break Samsung’s you get seven homescreens that you can customize with all the widgets own record and sold and shortcuts you want. The new over three million units version of TouchWiz comes with new in the 55 days since Music, Game, and Readers Hubs that join the Social and Media Hubs. The launch Game Hub, powered by Gameloft, organizes games for purchase by social games and HD games. The Contacts have some awesome new gesture based functions. Swipe right on your friend’s name, and you’ll start a call; swipe left on their name, and you’ll get to the SMS composer. The Galaxy S II has an 8 megapixel camera plus a front facing camera for video calls. Image quality of photos are exceptional, both indoor shots and outdoor ones. The shutter speed on the camera was fast enough to capture photos of sports, kids, and other quick moving subjects. The Galaxy S II is powered by a dual core processor which makes navigating the phone, whether it’s photos, video or games incredibly fast. This is the first phone I’ve seen that really contends with the iPhone and the sales prove it to be so. The Galaxy S II went on to break Samsung’s own record and sold over three million units in the 55 days since launch. That’s approximately 50000 phones a day. If you’re in the market for a new phone or about to renew a contract you’re going to have some tough decisions to make. I know I do… end of September I am going to have to decide, wait for the iPhone 5 or grab the Galaxy S II either way I wont be disappointed.

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TECHNOLOGY

NEC M300WS Present to your audience using the M300WS, a widescreen, value driven and eco-friendly portable projector. This model delivers an ideal short throw distance solution for education (including interactive whiteboards) and corporate applications, and offers 3000 lumens to deliver bright images. With advanced connectivity, including HDMI and USB inputs, and wired and wireless (optional) networking options, the M300WS benefits users requiring maintenance-free design and environmentally conscious features.

NEC NP43 The NP43 mobile projector delivers presentations in bright, high contrast brilliance. This model, which displays amazing images from the latest DLP engine, is compact, lightweight and easy to use with the latest automatic features, making it ideal for the professional presenter on the road.

NEC MultiSync PA271W The 27â&#x20AC;? NEC MultiSync PA271W, a widescreen LCD display ideal for graphics and photography applications. This model features a dynamic design, wide colour gamut, 14-bit 3D LUT, eco-conscious features, high brightness and many cutting-edge technologies, creating a new benchmark for accurate and consistent colour performance.

MultiSync PA Series The NEC MultiSync PA Series has been designed to deliver uncompromising image quality to a variety of demanding professional desktop display applications. Uniting outstanding colour reproduction, class-leading ergonomics around 10-bit P-IPS panel performance.

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Looking for the perfect conference and function venue? You want it to be easily accessible from Johannesburg, Pretoria and OR Tambo and across the road from Gallagher. You want a choice of 17 stunning conference and function halls and brilliant service. You need hospitable intimate seven 4-star guest houses with 91 twin bedrooms on suite.You want gardens and pools for your delegates to relax and unwind at the end of each day. You want a village that understands your needs and budget constraints. Look no further. Midrand Conference Centre and Villa Tuscana Guest Houses offers all this and more.

Email: info@midrandconferencecentre.co.za or visit www.midrandconferencecentre.co.za Phone: 011 315 8326

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CSI Support development ethically

one properly, development grantmaking work is about people. It is about the people who have the means to help, the people with the energy and vision to employ those means to make a difference, the people in whose lives this difference is made. Working with these people is an honour - and we must earn this honour by conducting ourselves not just efficiently or professionally, but also ethically. As with any sensitive set of human relationships, understanding, empathy, experience and an awareness of the limitations of our experience are necessary before we can be confident that we are acting as we should. There are some practical guidelines that, in my experience, can help us navigate the course of ethical grantmaking: How we listen is critical to how we understand and comprehend. Organisations have to share their experience of what works and does not work and, just as importantly, what their dreams and aspirations for the future are. Their on-the-ground knowledge often does 114

not fit any neat preconceptions we may have. What is real and possible in one place may not be replicable in another. We should not make promises we cannot keep or create false expectations. We must also avoid being pressured by an organisation to fulfil expectations. As tempting as it is to be “the good guy” and predict a rosy future, it is far fairer to be upfront about who ultimately makes funding decisions, the fact that this is a competitive space and that we are unable to give any initial guarantees. We should avoid a hierarchical relationship whereby we assume control and instead focus on building partnerships — difficult and frustrating as this can sometimes be. Developing a partnership takes time and effort. As with any relationship it needs to deepen over time and be mutually beneficial. Some relationships are more intense than others, some more long-lasting and some disappointing. We cannot be led by sentimentality. Lamenting over pictures of orphaned or destitute children should not be the basis of decision-making but rather an important realisation of the harsh realities

Writer Tracey Henry

that do exist. What is far more important is our response to these harsh realities and to understanding how best ordinary people can respond to these challenges. It is in the stories of humanity’s victories and brave “muddling through” that we find the way to true partnerships that can work. As leaders, the decision-making of grant-makers needs to be guided by wisdom and objectivity, not by personal agendas. We must be sensitive to the limitations imposed by our various upbringings on how we perceive ¬others and society. Objectivity implies fairness and being fair means understanding the implications of our decisions. We must consider cause and effect in the deepest sense and explore what this means at the core of development. We should, above all, strive to engage our partners with care, respect and integrity and treat them as we ourselves would wish to be treated. That should, after all, form the foundation of any ethical code. Tracy Henry is CEO of Tshikululu Social Investments.

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Central Office Tel: 013 690 1430 Fax: 013 690 1450

info@nkangalafet.edu.za www.nkangalafet.edu.za 115

tourism Can you afford to travel? Writer Rishqah Roberts

n the convenience we have become accustomed to, travelling has become a part of our every day lives used by more and more people as society has progressed, yet the cost of travelling is still rising steadily. Why is this? Should it not be that because more people are travelling the cost related thereto should be able to come down, a type of bulk buy scenario? Thus, to me travelling should have become more affordable over the years. In reality however the situation is the complete reverse. The cost of travelling has risen as collateral damage resulting from recent price hikes in fuel and electricity. Due to these price hikes, which rise quite often mind you, the expense associated with travelling has become a whole different ball game not just for the tourist, but their tour guides as well, as pricing and budgets geared towards travelling are usually planned out eighteen months in advance. To avoid these necessary expenses cutting into the budgets of tour guides, as is currently happening on safari trips in Tanzania, they are putting the expense in the tourists account and labelling them fuel surcharges, which currently range from between fifteen and twenty percent of their bill depending on the length of their intended trip. The global recession has managed to 116

worm its way through and affect everyone in its path. Although affected, travelling has not come to a complete stand still, as yet in Manchester, as they have managed to keep their travelling agencies open throughout the difficult periods. However, they have definitely suffered a loss with regard to the amount of business coming in, most noticed in their profit margins as people logically prefer the cheaper option of putting their own packages together in these difficult times. In an effort to avoid this tour guides have been known to come up with and put together amazing, unbeatable, never-done-before packages. So travelling as a lone ranger might not always be the cheaper option it’s thought to be. Perhaps for the travel destination you’re intending on visiting both the cheaper and more convenient option card rests simultaneously in the hands of a tour guide. The strange thing is that people remain reluctant to take either option though. Clearly the global recession has affected their back pockets in such a way as to have been demanded by more immediate necessity expenses, that travelling is simply just not on the cards at this moment in time. Right now the South African Rand (ZAR) is doing so well that it is considered over valued by government and they are even

considering methods of curbing the ZAR’s appreciation. Whether this is possible though remains debatable, some with expert knowledge in the field are of the opinion that the Rand is on a train to the top, which can not be stopped by government. At R6.76 an American Dollar, R10.83 a British Pound, R1.05 for the Chinese Yuan and R0.0008 for the Indonesian Rupiah, it is, as it has always been, cheaper to travel to the east as opposed to the west. Of our estimated forty seven million South African population, even less than five million of them are travelling whether for business, or pleasure. Recent statistics prove that South Africa is able to have a much greater percentage of their population travelling, as affordability is not really the issue. The problem is however, that not enough effort has been made where advertising is concerned, and people are generally intimidated at the thought of travelling alone so as a result it’s just not done. We should all take another look at our situation and perhaps we will find that now is actually the time for that long awaited trip and that there’s really no need to put it off any longer. Fingers crossed!

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HEALTH

cattle were found susceptible to the disease, including the Gauteng region. No deaths were recorded and no animals were killed. E. Coli Found in the intestinal tracts of animals and humans, this bacterial infection can cause serious food poisoning in humans. During the 2011 E. Coli outbreak a variety of raw vegetables, have been suspected as the sources responsible for transmitting this organism. The outbreak, which killed 31 people and sickened 3 100 in Europe, is an example of the spread of this bacteria through contaminated food. Often it is called ‘the traveller’s bug’ as it commonly affects people visiting foreign countries. In most cases, treatment is not needed. The infection generally clears up by itself, within five to ten days.

Avian Flu, Foot and Mouth, E. Coli, Is our food safe? Writer Reagan C Adams

oodborne illness is a serious and often unrecognized public health issue. In an effort to create food safety awareness globally, Health and Human Services encourage parents and caregivers to help protect their families from food poisoning by ensuring they follow certain food safety steps. As consumers, on the other hand, we are also responsible to keep ourselves informed about diseases affecting our food resources. Three dreaded diseases recently headlined world news. Avian Influenza As its name suggests avian flu, or bird flu, refers to influenza caused by viruses adapted to birds. The recent outbreak in South Africa mainly affected ostrich farmers. First detected on 9 April

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2011, the outbreak spread through the entire Klein-Karoo Valley, home to about 70% of the country’s ostrich industry. By the end of May, 10 000 ostriches and an unknown number of chickens were culled, as a preventative intervention. Fortunately avian flu does not raise risk to human beings. Foot-and-mouth disease George Saperstein, a veterinary medicine professor, says that in his opinion foot-and-mouth disease is by far the most socio-economic disease of livestock. It is a highly contagious and sometimes fatal viral disease that affects multiple species of cloven-hoofed animals. On 28 February 2011, after detecting a possible outbreak in Kwa-Zulu Natal, all exports of cloven-hoofed animals and their meat were suspended. A total of 116 112

Food Safety Education Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness. It includes a number of steps that should be followed to avoid potentially serious health hazards. These safety steps follow. Clean: Wash hands and surfaces often. Bacteria can be spread throughout the kitchen and get onto hands, cutting boards, utensils, counter tops and food. Regularly wash your hands with warm water and soap. Wash your cutting boards, dishes, utensils, and counter tops with hot soapy water after preparing each food item and before you go on to the next. Separate: Don’t Cross-Contaminate. Crosscontamination is how bacteria can be spread. When handling raw meat, poultry, seafood and eggs, keep these foods and their juices away from ready-to-eat foods. Always start with a clean scene, as explained above. Separate raw meat, poultry, seafood and eggs from other foods in your grocery shopping cart, grocery bags and in your refrigerator. Cook: Cook to Proper Temperatures. Food is safely cooked when it reaches a high enough internal temperature to kill the harmful bacteria that cause foodborne illness. Chill: Refrigerate Promptly. Refrigerate foods quickly as cold temperatures slow the growth of harmful bacteria. Do not overstuff the refrigerator. Cold air must circulate to help keep food safe. Food is our bodies’ fuel which without it, we are unable to perform daily tasks or enjoy life. I believe it is one of those things that make us want to be sociable. Fact is, we cannot quit eating. Become food safety savvy and protect yourself and your family from contamination.

Mediclinic reaching out to the community

ediclinic Southern Africa recognises the importance of being involved in the communities in which it operates by providing cost efficient acute care hospital services and contributing to the welfare of previously disadvantaged people through its skills, technical expertise, financial resources and employee time. Therefore a corporate social investment (CSI)

policy has been successfully implemented, which is built on a three-tier platform, namely public private initiatives, joint ventures and volunteerism. The platforms are integral to the group’s sustainable development strategy of economic, social and environmental performance, or triple bottom line, in accordance with the 2009 King Report on Governance for South Africa (King III) and the JSE SRI (Socially Responsible Investment) indexes.

Public private initiatives are the flagship of the company’s strategy. This involves collaborating with government hospitals to provide much needed surgical support in various disciplines such as cataract operations, prostatectomies and tonsillectomies. In May 2010, Mediclinic Southern Africa embarked on a R2,5 million project, in which it partnered with the Northern Cape Department of Health to remove cataracts from 280 indigent patients in Kimberley. Other projects undertaken included the donation of two dialysis machine and a water purification system, worth R800 000, to the dialysis unit at George Provincial Hospital. In addition the hospital group heeded the call from the Minister of Health for HIV volunteering, counselling and testing by partnering with the South African National Aids Council in their awareness campaign. This entailed printing 1,8 million “10 reasons to get tested” flyers for distribution. “Our CSI strategy consists of three distinct tiers and public private initiatives such as these spearhead our endeavours to ensure a future of quality healthcare in South Africa,” says Dr Mvula Yoyo, Transformation Executive, Mediclinic Southern Africa. The second tier comprises joint ventures with established non-profit organisations that meet the government’s socio-economic requirements. Last financial year 45 accredited community-based projects were financially supported to the value of R2 million. While a total of R100 000 went towards in-kind donations. Through this involvement, Mediclinic Southern Africa is able to help them expand their programmes and reach more people. The final tier gives Mediclinic Southern Africa’s staff the opportunity to engage with the community outside the hospital setting through volunteering. Five pilot projects were rolled out. Three of these involved renovating childcare centres in Mbekweni township (Mediclinic Paarl), Kraaifontein (Mediclinic Panorama) and Philippi (Mediclinic head office). A food garden was planted in Morningside on the west coast (Mediclinic Milnerton) and Mediclinic Bloemfontein renovated a home for the mentally challenged. Mediclinic Southern Africa believes CSI should play an important part in a commitment to broad-based transformation in South Africa as a healthy population drives a healthy economy.

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Towards a brighter future

or those who enter the workforce without a qualification life can be tough, with few prospects of promotion or earning a better salary during their working lives. The SETAs address this situation by offering appropriate training to workers and encouraging employers to improve the knowledge of their work force. One of these SETAs is the Culture, Arts, Tourism, Hospitality and Sports Sector Education and Training Authority (CATHSSETA), which recently emerged in its new guise from the erstwhile THETA to include culture and arts. “We have undergone two main changes with the migration from THETA to CATHSSETA,” says CEO Mike Tsotetsi. “from a skills development perspective we are working according a strategy that encourages research and development. The migration has also meant that we diversify as a SETA by incorporating the creative industries and heritage into out scope.” “Secondly, we have embarked on number national workshops as part of our stakeholder engagement and management. This has offered us the opportunity to address critical issues raised by our stakeholders. These vary from accessing training which is being offered by our accredited training providers, to solving problems experienced by our

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levy payers, right down to the management of our SETA Management System (SMS) and how the training providers can upload the achievements of their learners on the system. - It has not been an easy road since we were engaging with stakeholders that are accustomed to a specif way of doing things from the now disbanded MAPPPSETA; but we are very excited in that we have seen buyin by the levy payers, and training providers that were not previously with CATHSSETA.” Tsotetsi believes that there are many benefits

We want to ensure that investors see a return on their investment to be had from the SETA’s increased scope and coverage of a larger range of industries. By including arts and culture, the SETA is able to leverage on the full value chain associated with tourism instead of isolated industries. Programmes are being aligned to encourage tourists to sample the work produced by the arts and culture industries. Under Tsotetsi’s guidance, the CATHSSETA is committed to serving every person in its sector and not only those who participate in education and training. “We are encouraging those who are not participating to become involved. We have a responsibility to ensure that our programmes

reach the previously disadvantage communities, people in rural areas, women, the youth and consider and act against the scourge of HIV and AIDS that has posed such a threat to the industries of our SETA. -,” says Tsotetsi. “Everyone should have the attitude of sharing whatever knowledge they have with the sector and vice versa. “We have a special interest to working more closely with the newly incorporated sectors and know that arts and culture is driven by government funding and foreign investors. We want to ensure that those investors see a return on their investment by improving the skills base, knowledge and services of our providers” There is also a determination by the SETA to up its gains and serve the country in terms of the goals set out by the National Skills Development Strategy (NSDS III). CATHSSETA strives to succeed where many SETAs have failed by increasing, as much as possible, access to the occupationally directed programmes that are available, not only at a basic level but also in the intermediate levels. This means the SETA will be working in close collaboration with the further education and training (FET) institutions to ensure that FET programmes remain relevant to the country’s skills needs.

Culture Arts, Tourism, Hospitality and Sport Sector Education and Training Authority The Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority, also known as CATHSSETA; is a statutory body established under the Skills Development Act No. 97 of 1998. CATHSSETA is mandated to implement the National Skills Development Objectives that meet the requirements of the National Skills Development Strategy (NSDS) as outlined by the Department of Higher Education and Training (DHET); which is agreed to by all stakeholders in the sector. Our Vision Sustainability people development for prosperity. Our Mission To facilitate the skills development of our people through creating strategic partnerships to ensure a meaningful contribution to economic growth within our sector. Our Values Service Excellence, Commitment to Transformation, People Development, Accessibility, Integrity, Strengthening Partnerships Our Objectives CATHSSETA’s strategic objectives are directly

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aligned to those of the NSDS III 2011-2016 which are to: • Establish a credible institutional mechanism for skills planning; • Increase access to occupationally-directed programmes Intermediate level; • Promote the growth of public FET college system that is responsive to sector, local, regional and national skills needs and priorities; • Address the low level of youth and adult language and numeracy skills to enable additional training; • Encourage better use of workplace-based skills development; • Encourage and support cooperatives, small enterprises, worker-initiated, NGO and community training initiatives; • Increase public sector capacity for improved service delivery and supporting the building of a developmental state; and • Build career and vocational guidance. CATHSSETA contributes to the development of skills for those employed individuals who are seeking to improve in their specific fields as well as those wanting to be employed; and functions in a spectrum of industries by offering some specialized experience and training opportunities within the following sectors; Hospitality, Tourism and Travel, Gaming and Lotteries, Conservation and Tourist Guiding, Sport, Recreation and Fitness, Creative Industries

For more information on the services we offer: visit www.cathsseta.org.za call 011 217 0600 email info@cathsseta.org.za

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ART From Russia with love Writer Kendal Brown

where he still had his studio. It was, to put it mildly a shambles, and boasted an unfinished painting on an easel in the middle of the studio. He insisted he was still working on it but I doubt he finished it. It still showed all his old skill and talent but I think he was just too shaky to paint any more. We visited him several times and he happily waited while we interviewed him in his studio, lounge and garden, pressing him for little secrets This self taught artist outsold many a more recognised ‘artist’ and, if his that perhaps he had never shared before. He might well work appealed to so many, who can have had but I fear we got to say his art was not recognised him too late as his memory had long since faded and he clung mostly to those that were all too well During his halcyon days in Cape Town, he documented. His heavy accent and faltering was either hailed or reviled as the ‘King of voice also didn’t lend itself to clarity. Kitsch’. I suspect a lot of jealousy may have Am I being critical. No. I am telling you what raised that epithet. After all, this self taught artist outsold many a more recognised ‘artist’ I experienced. It was sad. Underneath it all you saw the energy and love of life that once and, if his work appealed to so many, who coursed through this creative man’s veins. can say his art was not recognised? And in Now old age cruelly and slowly tore it away the best possible way. People were willing to from him. He had talent, who can deny. He pay for it even if it was only a print! had courage too. Small of stature, he faced Back in 1997, when he was already way down an entire art world by doing exactly past his prime, I had the interesting and what he wanted to, never mind their opinion! challenging task, of interviewing him for a I am a great believer in beauty is in the eye of TV documentary of which I was co-producer. the beholder. So who can tell any of us what We visited him at his Bishop’s Court home ladimir Griegorovich Tretchikoff, died in Cape Town at the age of 93 in 2006. Tretchikoff,who was born in Russia and through the vagaries of revolution and war wound up in South Africa back in 1946. His early years as a refugee make interesting reading. (His autobiography “Pigeon’s Luck” is well worth a read.)

is art and what is not? My opinion, for what it’s worth, is he was a good artist. Innovative and independent. The fact that they never hung him in the South African Gallery seems small minded now that they have an exhibition of his works that will run for four months at the Iziko: National Art Museum in Cape Town! During our chats he talked about his eastern adventures and of course Lenko, who we actually went all the way to Holland to interview. Another interesting lady! A highlight was when he offered me one of his prints, The Balinese Girl, which he autographed with a very shaky hand. I treasure it among my few works of art, mostly originals by a little known local artist (but one whom I think is rather good!) and Maxfield Parrish prints (look him up on the web, ahead of his time!). There are of course many excellent artists around who will never receive the recognition they deserve. That’s life. But if you want to have an opportunity to enjoy the art of one who did, then take the opportunity to see Tretchikoff’s works while they are on display until September at the Iziko: National Art Museum in Cape Town.

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SPORT Rugby World Cup 2011 Writer Jerome Dyson

his year, from the 9th of September to the 23rd of October, the beautiful land of New Zealand plays host to the most prestigious of all rugby tournaments-the Rugby World Cup 2011. 20 nations will battle it out for the title of Champion and the chance for glory, each team fighting tooth and nail to come out victorious and hold up high, the coveted Webb Ellis Cup. While South Africa did not compete in the first RWC tournaments due to international sporting boycotts, they both hosted and won in their inaugural appearance in 1995 beating New Zealand. South Africa also defeated England in the RWC 2007 final to become one of only two teams to win the Webb Ellis Cup on two occasions. As the current world champions, we will be going into the event as one of the favourites to go all the way. One of SARU’S main objectives is to unite all South Africans through their passion for the team as well as to appeal to those who have immense national pride in South Africa and our country’s assets. Let’s take a look at an overview of the SPRINGBOK FANS UNITE 2011 campaign. The Springbok Fans Unite 2011 campaign gives fans the opportunity to pledge their support in a tangible way. By simply visiting either www.unite2011.co.za or the www.facebook.com/springboks fan page, supporters can become one of the thousands of South Africans uniting behind the Springboks in the lead-up to the IRB Rugby World Cup. Interactive competitions, chances to win branded gear and even trips to watch the team in New Zealand, forms part of the activity on these platforms. The Campaign kicked off on 1 June, and will finish when the team arrive back home in October. The key focus will be an expression of national pride, with BOKDAY. BOKDAY is every Friday leading up to the IRB Rugby

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World Cup 2011, as well as every day that the Springbok team take to the field before (Castle Tri-Nations), and during the World Cup tournament. On BOKDAY, we call on supporters to take to the streets in their Green & Gold official Springbok merchandise. Clearly proud. Clearly passionate. Clearly committed. BOKDAY [1st JUNE – END RWC] SARU, The Minister of Sport – Mr Fikile Mbalula together with Lead SA are promoting the BOKDAY concept. Every Friday for the next 15 weeks will be an official BOKDAY where the public of South Africa are encouraged to wear their official Springbok merchandise in show of their support for the team. But, BOKDAY is not limited only to Fridays. BOKDAY is also every match day when the Springboks take to the field – irrespective of what day of the week it is. We will be having spotter campaigns throughout the Rugby World Cup to keep excitement and activity high. This could be through Facebook pictures, twitter feeds, radio campaigns, school activations and of course, actual sightings in cities around SA! So, watch out and get spotted! In support of all retailers that stock official Springbok Merchandise, SARU, together with Signet Licensing, have provided BOKDAY point of sales items to selected stores to support the BOKDAY initiative. Official Apparel Sponsor to the Springboks, Canterbury, has also thrown their weight behind the BOKDAY initiative through channels under their direct control. THE FANS’ FAREWELL [1 SEPTEMBER] On 1 September 2011, the Springboks will depart South Africa for New Zealand, to represent the South Africa at the 2011 IRB Rugby World Cup. A public send-off event will be hosted at Nelson Mandela Square on the afternoon of 1 September, complete with

live entertainment by South African artists, an appearance by the entire Springbok Rugby World Cup squad and management and the performance of the Unite 2011 Campaign Song, “Let’s Do It Again”. The Springbok team will then walk from The Square, along West Street to the Sandton Gautrain Station, and fans will have the opportunity to bid them farewell and to wish them good luck. The team will then take the Gautrain to OR Tambo International Airport to board their plane to New Zealand. ABSA BOKTOWN VIEWING PLATFORMS The Springbok Supporters Club will once again be hosting their successful Absa BokTown viewing platforms. Absa BokTown will be hosted at Montecasino (JHB), Suncoast Casino and Entertainment World (DUR) and also Trinity (CPT). The Supporters Club will be introducing a new concept for the RWC quarter-final matches, “overnight sleepovers” on the pitches of Newlands, Johannesburg Stadium and Durban‘s Moses Mabhida. Entertainment and full details will be confirmed closer to the time. New to the viewing opportunities are 10 ‘Township TV’ sites which will be hosting the RWC games, free of charge for the local communities. Selected sites and matches will have TAG rugby clinics to teach the children about the game, as well as to create a positive and interactive experience. [TAG clinics teach the ball handling skills of the game, using a touch/tag format, with low contact to enable all ages and genders to play together] Our team is definitely a force to be reckoned with so support your country by wearing your green and gold colours and let’s bring the Webb Ellis Cup home for the third time.

Go to

SPRINGBOKS or

WWW.UNITE2011.CO.ZA

Structurally ahead of the pack

onsulting engineering and project implementation firm Hatch’s Structural Practice is cutting their project delivery schedules by up to three months and improving quality control owing to improved workflow through its in-house 3-D modeling procedures and shop detailing capabilities. Hatch Structural Practice Lead Stephen Stacey says that by replacing the 2-D engineering layout workflows with 3-D model workflows, the result is a savings on structural engineering drafting hours as well as enhanced quality. “We have witnessed a serious deterioration of skills on site and in the fabrication processes and believe we can counter-act this by using enhanced 3-D model workflows in the office,” explains Stacey. “The schedule for the in-house shop detailing workflow – in comparison to the traditional workflow – affords clients a time saving of between three weeks and three months by cutting out the need for 2-D drawings and shop drawing approvals. Through the traditional workflow, companies have to prepare the 3-D models and 2-D drawings before they can tender and award the shop 126

detailing to a fabricator,” says Stacey. By using the in-house approach, the shop detailing can begin while the fabricator is still in the tender selection process. Once the fabricator has been appointed, they can immediately begin ordering material to begin fabrication rather than wait another eight to ten weeks for preparation and approval of steel detailing documentation. “By using this in-house detailing approach there is a vast improvement in interdiscipline co-ordination and design, autoclash detection, reduced duplication of data and control of re-work. Additionally greater flexibility, both in terms of global procurement and fabrication, is enabled,” explains Stacey. Hatch Shop Detailing Coordinator Elodi Vlok adds that the end result is dramatically reduced error rates, while the close interaction between engineering and detailing allows for the flagging of omissions and errors in a timely fashion. “Hatch is one of the only consulting engineering firms in South Africa with an in-house detailing division. These capabilities are spread across the globe and can be accessed through Hatch’s offices in

Montreal, Canada; Johannesburg, South Africa; Delhi, India; and Shanghai, China,” explains Stacey. Meanwhile, Stacey notes that Hatch’s 3-D modeling is world-class; and that in terms of reviewing and organising the EPCM workflow, Hatch is one step ahead of other consulting engineering firms. Hatch Africa’s Structural Practice has won numerous awards over the years, including several from the annual Tekla Structures Competition. Hatch’s Structural Practice is currently involved in numerous projects, including the Kolomela mine in the Northern Cape for Kumba Iron Ore, a business unit of global miner, Anglo American. As the main EPCM contractor on the project, Hatch’s Structural Practice was tasked with the design and engineering of a new plant, primary crusher, secondary crusher, tertiary crusher and train load-out station. Stacey says the project has been running since 2008 and is now reaching commissioning. Amongst others, Hatch’s South African and Canadian offices are also involved in large smelter projects in Canada and Iceland for mining giant Rio Tinto.

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RESTAURANT REVIEW Sloppy Sam Writer Mark & Roxy Rosenberg Photos John Anthony Davis

ince I have moved to the bustling streets of Cape Town City I have always been attracted to the peculiar name of a certain restaurant, Sloppy Sam. The name is regarded as a landmark in Green Point. Established in the 1930’s as a milk bar which slowly introduced Greek styled dishes, Sloppy Sam has evolved into a popular eatery. Its 19h30pm when we arrive to a rather quiet informal venue with a relaxed ambience. Mediterranean music fills the room. Persian carpets hang off the walls, along with personal photos from Iran and shelves packed with pomegranate juice, olive oil tins and jars of pickled treats and bottled pleasures. Persian Chef and owner Hooman Saffarian was enjoying a glas of wine with what looked like loyal customers. Linda,

our Portuguese waitress brings us a bottle of Hartenberg Pinotage 2007 and simple starter of hot pita bread, pitted olives and creamy feta drizzled in olive oil. Linda had the right balance of attentiveness, service and friendliness. Simple earthly flavours are going down well when we are warmly greeted by our charming chef Hooman. It’s always a pleasure when personal interest is shown. He informs us that he enjoys his chilli (as do I) and mentions to us that he would like to add his pickled sour grapes speciality to enhance the flavour of our main events. Mark is having the ‘Sloppy Sam Famous Lamb’ slow roasted lamb shank that falls off the bone with flavour, served with vegetables and delicious roast potatoes. Perfection. I was torn between the pepper steak beef medallions served with mash potato and ‘Hoomans Calamari’ . My

father who grew up along the west coast has instilled in me a taste for seafood, making my decision easy. Generous pan-fried whole baby calamari with just the right amount of fresh chilli, garlic and lemon, served with dill basmati rice. There was not enough rice to soak up the tastiness. True to their catchphrase “ Simple food cooked well”. For sweets we tried the baklava served with real home made toasted almond ice cream. Along with turkish coffee and a rose dom pedro, the sweet non alcoholic version. Its easy to enjoy good food in the homely atmosphere where Chef Hooman clearly serves food to people who want to eat with unique flavours. Whether you’d like to enjoy a romantic evening or a casual dining with friends in the cosy upstairs, Sloppy Sam (contrary to the name) is a good choice to enjoy the last of cold winter nights.

BROOKES HILL SUITES

48 STUDIOS 1 ONE BEDROOM SUITES 7 TWO BEDROOM SUITES Across the way from the Port Elizabethâ&#x20AC;&#x2122;s most popular beach, flanked by Brookes on the bay, offering full restaurant facilities, with the casino complex only a 10 minute walk. Undulating gardens surrounding a beautiful salt pool. Braai areas to enjoy. For complete peace of mind at all hours, we provide 24-hour security. 24hr security, WIFI access, braai facilities, salt swimming pool surrounded by luxurious gardens, secure parking, conference facilities, on site restaurant and bar, same day laundry/ dry cleaning service, selected satellite channels, swimming pool and luxurious walkways, private access leading to beachfront

Phone bookings: 041 5840444 Fax bookings: 041 5840844 Email: bhill@legacyhotels.co.za

www.legacyhotels.co.za

BEYOND THE BEAT Are you caught by the economic crunch? Writer Brow Beat

re you one of those people that are walking around with a financial noose around your neck? Or are you flying that financial kite of freedom, free from debt and other measures that are begging to get you tied down for many years to come? With all the prices going up, one struggles to keep head above water. You just had a sigh of relief when you heard the petrol price was going down by twenty cents, just for it to go up again two months thereafter by seventeen cents. What was the point of it all! All this negatively impacts on your pocket and your “well-planned” budget. Some of us let me not exclude myself, live for the day when we can just spend and not think where the next cent will come from. A world where all you want is there for the picking, you should just indicate how much you want, and it will be yours. Oh stop dreaming and get real! With the recession still being in place and worsening in some countries, I may not see this in my lifetime. With all of this said, I thought it apt for me to share some tips on

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how to beat this economic crunch and how you could make your twenty cents go much further. Dare not point fingers and call this stingy, it is revolutionary to say the least. Tips not to be frowned at: Buy two ply rolls of toilet paper and separate the sheets so that you can make two rolls. This will be cheaper than buying two single ply toilet rolls, kaching money in the bank! Re-use your roller towel sheets more than once by hanging it out to dry after use, by the third use; you may dispose of it, more money in the bank! Rummage through your neighbours bins for all the tomato or any other sauce sachets that they may have discarded without opening them. Squeeze all of these in a bottle and you may be surprised by the amount that you may get from all the sachets. Even better put a note in your neighbour’s post box and ask them to collect the sachets for you when they buy take away and give them a day on which you will collect it, brilliant to say the least! An old adage that says, “Another man’s trash could be your treasure.” Ask your

neighbour’s to consult you when they are thinking to get rid of any old furniture or things they just don’t want anymore. Even offer to get rid of it for them for FREE! Take it to your garage and sort it and have a garage sale, you will be surprised by the amount of money you can make from this, another brilliant idea, try it! Don’t always drive with your car to the shop. On sunny days, take a walk and do careful inspection of your surroundings. You can be amazed at some of the things you may find lying around. Ensure that you have a solid carrier bag to bag the treasures that you may find lying around and add it to your stock for your garage sale. One cannot afford to go through life with closed eyes! These are only a few of my brilliant tips that I can share with you now. One needs to beat the economic crunch that is bearing down on our pockets and threatens to change the things we used to enjoy doing. By following some of the tips above, we may just survive the total onslaught. Happy hunting! Till next time!

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Fleurhof Views, Fleurhof, Johannesburg

138 Brickfields

TAU Village

GAUTENG PARTNERSHIP FUND

Providing affordable housing finance solutions

ousing provision remains one of the greatest items on the public finance policy agenda in South Africa, with millions of our people still awaiting suitably located, affordable accommodation which would improve the quality of their livelihood. This is evidenced by continuos national debates and various policy pronouncements by government regarding the need for rapid delivery of sustainable human settlements. In Gauteng the housing challenge is particularly severe, with people continuously flooding to this economic hub in search of work and better quality of life. For some time the banking sector had been reluctant to fund in the low income housing market due to perceived high risk associated with the low end housing market segment. Gauteng Partnership Fund (GPF) was therefore founded by The Gauteng Department of Housing in 2002 as a mechanism for mitigating risk faced by private sector funding institutions in financing the low end housing developments in the province. This we have been able to achieve by taking up to 30% first loss position in the funding arrangements towards the developments, provided that these meet our target beneficiary group which are the households earning between R1500 to R12000 per month in 2004 prices, and that the private senior debt financing of the balance would be forthcoming. We at Gauteng Partnership Fund pride ourselves of having been a key player in the facilitation of affordable housing developments in the Gauteng Province. Since our inception as a public entity under the auspices of the Gauteng Department of Housing, we have focused our programmes on mobilization of private sector funding to address the funding constraints that are experienced by social housing providers and low income housing developers in putting up affordable, well located housing developments. To date we have committed

up to R450 million of public risk capital towards financing of affordable housing projects, enticing banking sector to enter the market to the tune of close to R2.2 billion, resulting in over 17000 housing units for our target population. When we started our mandate was to design and implement innovative funding solutions to normalize the social housing market in Gauteng. At the time banks were reluctant to fund social housing projects due to the perceived riskiness of those investments.

To date we have committed up to R450 million. Moreover the conventional banking risk evaluation criteria were not structured with a clear understanding of this market segment and therefore banks were not well disposed to optimally price the risk associated with their funding facilities. We therefore entered the market with innovatie funding instruments wherein we would provide the first layer of capital, very favourably priced relative to market, to enable banks to mitigate their financing risk. Our interventions have made a great deal of difference and the value we have added to this critical sector speaks volumes. While we have managed to successfully put the GPF on the pedestal as a premier vehicle in the housing delivery chain in the province we are starkly aware of the challenges still facing the provincial government given the massive backlogs of suitable housing in Gauteng. We have aligned our current strategic objectives closely with those of the Gauteng Department of Local Government and Housing, especially the strategic outcome of accelerating delivery of housing opportunities through provision of adequate shelter by implementing rapid developments of mixed housing and provision of adequate rental housing solution in partnership with the private sector. GPFâ&#x20AC;&#x2122;s impetus has always been on building a networked ecosystem

of partners involving the private financiers, local government structures, relevant provincial government departments and affordable housing developers, including social housing institutions. We are now well poised to drive much more aggressively our strategy for the next three years which entails proactively sourcing housing projects in the province, packaging them appropriately for our clients and going to market to raise suitably structured funding instruments. Our focus will involve active participation in setting the agenda for sustainable human settlements and advocating appropriate policy interventions to assist the province in meeting its housing objectives. We continually call upon all our existing partners and new ones to join us as we drive our strategic interventions forward in this market. We are more than ever keen to see new players (developers and investors) who are interested in acquiring the old buildings in the inner-cities and converting them into suitable quality dwelling units. We particularly wish to assist emerging black entrepreneurs who would want to take risk alongside the public funds under our administration for a mutually rewarding partnership. We aim to realize the national policy objective of achieving cohesion within our communities through new developments within sustainable human settlement context. Gauteng Partnership Fund, 82 Grayston Drive, Sandton 2196, Tel: +27 11 290 6690, Fax:+27 11 290 6696, www.gpf.org.za

Gauteng Partnership Fund is a partner of choice in mobilization and facilitation of funding for the delivery of affordable housing finance.