Spotong Edition 2 by Contact Media

ISSUE 2

ebeens

ns and sh r e v a t r o f e in z a ade mag

sa’s best tr

www.spotongmag.co.za

Qualifying for a Bond

elcomes W y tr s u d In r o u iq L

EXTENSION OF SHEBEEN PERMITS

How to Increase your Chances

Stokvels

Improve Your Cash Flow Management

Potential Source to Finance SMEs

r Beware of Liquo Licensing Scams

Failing Entrepreneurs

trol n o C k c o t S s s e in Bus

Y E K E H T S S E C C TO SU y Lifestyle Keeping a Health

Fail Why Businesses After Three Years

rtising

hol Adve o lc A g in n n a B f o • Eﬀects

A PERFECT

VOTED THE BEST BRANDY IN THE WORLD BY THE INTERNATIONAL SPIRITS CHALLENGE 2011.

Not for Sale to Persons Under the Age of 18.

EDITOR’S NOTE

s we bring you our bigger, better second issue of Spotong we are pleased to announce our new partnership with the Gauteng Liquor Forum! This ground breaking partnership has been forged to promote responsible liquor trading in Gauteng and enhance communications among traders, their suppliers and other business stakeholders within the industry.

editor

Donald Makhafola

contributor

Mashabela Seshoka Andrew Lukhele

publishing house

Ferdi Booysens, a product manager at Old Mutual (page 28), explains the need for business assurance regardless of the industry, size or length of time in existence.

sales

Leroy Senderayi Lerato Tieho Mojaki Mosadi Julie Teffo

CREATIVE director Quinten Tolken

subbing & proofing Carrie Cleminson

PRODUCTION CO-ORDINATOR

INDUSTRY NEWS TAVERN OWNER PROFILE

TRADE FEATURE

9 From Bartender to Tavern Owner

11 You Need Sufficient Stock to Run a Successful Business

TRADE

15 Product Reviews

FEATURE

16 Responsible Drinking Government Looking to Raise Drinking Age to 21

STOKVELS

18 24 Years of Stokvels and Financial Institutions in SA 19 Stokvels: A Potential Source to Finance SMMEs 20 TAVERN AND RESTAURANT REVIEWS

BUSINESS

22 UNB Wants Separate Liquor Licensing for African Traditional Beer 25 Entrepreneurs Need Skills and Capital to Sustain their Businesses 28 Business Assurance 31 Cash Flow is the Income and Expenditure Pattern of Your Business

MARKETING

32 Banning Alcohol Advertising Would Affect Smaller Brands

COMMUNITY LEADER

HEALTH & SAFETY

42 Drinking Responsibly Keeps You Healthy

sales manager

EVENTS

Copyright © 2012 Contact Media & Communications. Spotong is published by Contact Media & Communications. All material is strictly copyright with all rights reserved. No material may be reproduced in part or whole without the express written permission of the publisher. No responsibility will be accepted for unsolicited material. The publisher accepts no liability of whatsoever nature arising out of or in connection with the contents of this publication. Whilst every care has been taken in compiling this publication, the publisher does not give any warranty as to the completeness or accuracy of its contents. The views and opinions expressed in Spotong are not necessarily those of the Publisher or contributors.

40 Wine Industry Encourages Ethical Labour Practices 41 Wine Reviews

PROPERTY

Chioma Didi Okoro

37 Promoting Pool Games in Taverns

finance and operations DIRECTOR Lesley Fox

SPORT

PROUDLY ENDORSED BY:

34 Save The Environment And Make Money

WINE

Kadimah Print

RECYCLING

REPRO & PRINTING

Tinique Morgado

Sean Press

Donna Verrydt

it and web manager

CEO & DEVELOPMENT DIRECTOR managing director and publisher

CONTENTS

38 Zanele Twala in the Forefront of Transforming Education

Gwen Sebogodi Contact Media & Communications Block A, 388 Main Avenue, Randburg Tel: +27(0) 11 789 6339 Fax: +27(0) 11 789 7097 email: pressman@contactmedia.co.za web: www.contactmedia.co.za

In This Edition

stock control or inventory management.

Cash flow management is the lifeblood of your business because it enables you to track cash as it flows in and out of your business and reveals the causes of shortfalls and Spotong strives to connect surpluses. Zandile Nkabinde, you with renowned industry from Azuka Payroll and Accounting Services (page 30), specialists who provide shares some tips to help you expertise in various areas of manage cash income your business so in this issue we speak to one of the country’s more effectively. top marketing specialists, This month marks 24 years Chris Moerdyk, about his preliminary impact assessment since the official recognition of on the proposed ban on alcohol stokvels by commercial banks in the country and President of the advertising (page 46). As a National Stokvels Association liquor trader this will help you of South Africa, Andrew Lukhele understand how the proposed (page 20), looks into the strides legislation would affect your made by this informal business and operation saving sector. if promulgated. We recognise that managing your stock effectively is key to a successful business and it’s for this reason that in our trade feature (page 11) we look into the benefits of an effective

CONTENTS

44 Being Self-employed And Qualifying For A Bond 46 What’s Happening Out There

LISTINGS

48 Tavern Listings www.spotongmag.co.za

INDUSTRY NEWS

S W E N Y INDUSTR SAB at the Forefront of Brewing WORLD SAB in Alrode is the largest capacity brewery in South Africa

Brewers to Benefit from Emerging Market Brewers are set to benefit from the growing consumer market in Africa as more people on the continent move from home-brewed beer and spirits to commercially produced alcohol, according to a report by Moody’s Investors Service, a company providing research for economic analysis. The report says the overall profitability of alcoholic beverage companies’ operating in African operations is high and most should benefit from continued growth in the premium segment. The beer market in Africa currently represents only five percent of worldwide volumes with four players controlling more than 80% of the market - SABMiller, Diageo, Heineken and Castel Group. They have all obtained a first-mover advantage among brewers operating on the continent. SABMiller is the fastest growing in the Sub-Saharan Africa’s region and Nigeria 4

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is one of the largest Guinness markets in the world for Diageo. In the premium segment, the Heineken brand is showing a higher rate of organic growth in Africa and the Middle East than the company’s total volume growth in the region.

Jameson Wins Six Medals at World Spirit Competition Irish whiskey, Jameson, recently won six medals at the 2012 San Francisco World Spirits Competition where judging was based on a blind, consensual procedure ensuring competitive integrity. More than 1 215 spirits from 60 countries were entered into the competition. The medals were: Double Gold for Jameson 18 Year Old Limited Reserve, Silver for Jameson Rarest Vintage Reserve, Jameson Gold Reserve, Jameson 12 Year Old Special Reserve and Jameson Select Reserve Black Barrel, as well as Bronze for Jameson Standard Irish Whiskey.

South African Breweries (SAB) Trade Brewer, Anton Erasmus, says the slightest variance in brewing, ingredients or method can affect a beer’s taste, aroma and even appearance. From the first germination of barley seeds to the final tankard of beer, only the highest standards are acceptable and that is their uncompromising commitment to brewing excellence, Erasmus explained during a media brewery tour at Alrode Brewery where he took reporters through the brewing and beer packaging process. SAB has a total of seven breweries in the country and the one in Alrode, in the East Rand of Johannesburg, is their biggest capacity brewery. Beer is best when it is fresh, so it’s packaged as quickly and efficiently as possible in high speed lines, into kegs, bottles or cans. The bottled and canned beer, which is more widely distributed, is pasteurised during packaging to ensure a longer shelf life. SAB’s portfolio of brands includes a total of nine beers. It also distributes, and in some cases, brews a number of local and international brands such as Peroni Nastro Azzurro, Miller Genuine Draft, Grolsch and Pilsner Urquell. Their flavoured alcoholic beverages are Redds, Brutal Fruit and Sarita.

REEZER has BACARDI B image with a

refreshed its ok. And at the lo dynamic new oduced a delicious tr same time in lackberry. B new flavour,

TinFish Advertising C3993

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Company of Bacardi & trademarks

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ONSIBLY

ENJOY RESP

Not for Sale to Persons Under the Age of 18. Enjoy Responsibly.

LIQUOR LICENSING

e m o c l e W s r e d a r T Liquor

Permits hebeen S Extension of

he Gauteng Liquor Forum (GLF) has welcomed the decision by the former Gauteng MEC for Economic Development, Qedani Mahlangu to extend Shebeen Permits in the province, by eight months, until 28 February 2013. The GLF, which represents more than 8 000 shebeen and tavern owners, had previously voiced its concerns in a petition over the proposed changes to the Gauteng Liquor Bill, which would have seen Shebeen Permits expire last month. According to Mahlangu, the extension will provide the necessary space for the migration of Shebeen Permits into the ‘liquor licensing regime’. The GLF is satisfied with Mahlangu’s decision and believes this will lead to better regulation of the sale of liquor in the province. A Shebeen Permit is a temporary legal document that grants the shebeen owner the right to trade. It has been estimated that the Gauteng Liquor Board

has issued more than 15 000 Shebeen Permits since it was legislated in 2004, more than half of which are still active in the market. “We applaud the former MEC’s decision to extend Shebeen Permits for another eight months. We believe that this will give liquor traders across our province an opportunity to be a part of the process that will shape the Gauteng Liquor Bill going forward”, said GLF spokesperson Linda Madida. “By taking this decision, Mahlangu is providing an opportunity for further engagement with all stakeholders during a process which will develop a legislative enabling environment for shebeen licensing. “ “At the same time, we’d like to remind our members to trade responsibly and within the rules stipulated by the permits. Permits are not for sale and their renewal is free of charge. MEC Mahlangu has given us all the opportunity to trade legally, so let’s

Gauteng Liquor Forum president and spokesperson Linda Madida

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all ensure that we do so responsibly”, Madida advised liquor traders. Economic Development spokesperson Mandla Sidu said the extension of the Shebeen Permits was in the public interest and would ensure that the rights of individuals are not adversely affected and there is no unreasonable burden on anyone. Sidu said permit holders are fully protected and should operate within the framework of the law and comply with it at all times. Mahlangu has been replaced by Nkosiphendule Kolisile as the MEC for Economic Development and Madida said: “We feel lost to the progress that was going to put our business in another level. “But we hope the new MEC will just fit like a hand to the glove because he is not new to the problems that our businesses are facing. He has been part of the debate around the proposed Legislation.”

t Beware of Fraudulen

cams S icensing L Liquor

epartment of Trade and Industry (DTI) has warned businesses and individuals interested in registering as liquor traders about fraudulent liquor licensing scams operating in Gauteng. The department said consultants involved in the scam lured applicants to pay exorbitant registration fees leading them to believe that they would receive registration certificates within two days to a week. “The consultants will then provide the prospective registrant with a fraudulent registration certificate,” said the department’s spokesperson Sidwell Medupe. Medupe said legitimate registration certificates issued by the National Liquor Authority (NLA) have security features and are easily identifiable. He said applicants must be informed on the standard and regulated fees for applications and the minimum waiting period to receive a registration which was 120 working days. Business people within the liquor industry were warned

against trading without valid registration certificates because that constitutes a criminal offence. The department revealed that about 15 % of liquor traders in the country were operating without valid licences. According to the NLA this normally happens around the informal settlements, where traders were licensed earlier and continue to trade even after their licences were revoked. The Gauteng Liquor Board (GLB) could not say how many liquor traders operate without licenses in the province but assumed that a majority of them are not interested in applying for licenses, whilst a few seem not to know how to go about it. ”During a majority of our raids, we discover illegal traders who don’t have a reason why they don’t have a licence,” says GLB Chief Director Ntsoaki Tsokolibane. “For the latter group we have introduced an online application system which we believe will assist a great deal. We also regularly conduct workshops to increase awareness about application

processes, pro-actively or per invitation by various stakeholders.” Tsokolibane says GLB conduct regular inspections or raids to establish whether or not traders have licenses and they also conduct out-reach programmes in schools ,as well as for liquor traders, to highlight the socio-economic impact of alcohol abuse. The NLA’s primary objective is also to balance the socio-economic impact of alcohol abuse with the economic viability of the alcohol industry.

Prospective registrants are urged to contact DTI’s call centre on 0861-843384 for guidance to liquor license application procedures and fees. Liquor traders who may question the validity of their registration certificates are advised to contact the Liquor Authority on 012-3941654 or the Gauteng Liquor Board on 011-3558663.

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PROFILE

Tavern Owner

From Bartender to

Tavern Owner T

hirty years ago, 50-year-old Norman ‘Shakes’ Hlongwane left his tiny village of Malamulele in Limpopo and came to Johannesburg in a hunt for greener pastures. On arrival he stayed in Soweto and worked at George’s Tavern as a Bartender. Hlongwane’s ultimate dream had always been to own and run a tavern and he put in all the work to reach his dreams. It was at George’s Tavern where he learned all aspects of operating a tavern and in 2003 he finally realised his dream and opened the doors to his very own “Shakes Tavern” in Diepkloof Zone 2. Since he started his business, Hlongwane has had to face many challenges but believes none of these are exceptional to his operation. “There are many taverns and that brings about healthy competition but I don’t see that as a threat, instead I see it as the nature of every business. We welcome competition and the emergence of any new business in the community.” Shakes Tavern opens for trading on Fridays and Saturdays only, but since its inception has been hosting stokvel celebrations and many other community social events. His good business skills, passion and the way he treats his customers has given him an advantage over his competitors.

Norman ‘Shakes’ Hlongwane, owner of Shakes Tavern in Diepsloot Zone 2

As an entrepreneur Hlongwane has bigger ambitions, one of which is to own a bottle store. He believes as a businessman you must always explore different ways to grow and subsequently increase your income or profit. “If you have a dream or idea for any kind of business, you must never back off, you must pursue it and I know it’s never easy but one day you will realise it,” Hlongwane advises. www.spotongmag.co.za

TRADE Feature

You Need Sufficient Stock

to Run a Successful Business

tock control is about managing your stock effectively, which is a key part of any successful hospitality business. Stock control involves careful planning to ensure that the business has the right quantity available at the right time because lack of stock can lead to a loss of sales and can ultimately damage your business reputation. Whilst most hospitality business owners recognise the benefits of stock control, many find it difficult to implement because it takes time to set up a good system and to provide the necessary staff training. According to Sean Scott, managing director at Retail Systems, a company that provide a wide range of customisable Point OfÂ Sale solutions for small and large retailers, stock control is the heart of any retail business and should work hand in hand with sales and profit management.

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TRADE

Feature

Scott says the main advantages of proper stock management is to minimize stock loss due to theft or breakage and it also allows good buying decisions to be made based on cost prices, potential profit and current stock on hand. “Without proper stock control buying, sales, stock and profit cannot be managed.” “The management of sales and profit can be done independently of stock management; however this is poor business management. Stock management can be done manually or with the assistance of a Point of Sales Program. The advantage of a Point of Sale Program is that it saves the business owner’s time and automates the capture of sales and incoming stock purchases to reflect a current stock on hand.” Stock Control software specialist Ian Said adds that stock control will also point out items that are moving slowly and possibly overstocked, causing a strain on cash flow. Said says implementing an effective stock control program will quickly point out problem areas that the company can rectify. The company will be able to see which items are performing well, and which stocks are being used inefficiently or stolen. He says it is very important that the person controlling the stock systems is not the same person controlling the stock because the same person can steal and finds ways to work around the system to cover their theft. He also advises that the business does not hold too much stock for too long because this will cost the business.

The costs of holding stock include: • Storage costs – the rent, heating, lighting and security costs of a warehouse • Bank interest - if the stock is financed by an overdraft or a loan • Risk of damage to stock by fire, flood, theft etc; most businesses would insure against this, so there is the cost of insurance • Stock may become obsolete if a buyer favours new or better products • Stock may perish or deteriorate – especially with food products

WINNER OF THE GOLD ‘BEST IN CLASS’ AWARD AT THE INTERNATIONAL SPIRITS CHALLENGE 2012

Not for Sale to Persons Under the Age of 18 Years.

RIB/10001121CT/E

VIVE LE RICHELIEU

TRADE

S W E I V E R PRODUCT Product Reviews

KWV Brandy

Amarula the Champion Brand Ranked

The renowned KWV 10 Year Old brandy has been awarded best brandy in the world by the International Spirits Challenge.

Amarula has been identified as the one of the hottest brands to pass the lips of patrons and is the fastest-growing global brand across all spirits categories. The marula flavour is so exotic and closely bound up with the mystery of Africa, making the Amarula cream drink a very compelling offering. Last year it was voted one of the world’s top bar brands in an international industry poll undertaken by Drinks International. In the survey involving 700 bartenders, bar owners and mixologists across 60 countries, Amarula took sixth place in the Top Ten Hot Liqueur brand list. Respondents were drawn from the most popular bars in major cities across the world and asked to identify the hottest brands according to their patrons.

Dry Savanna es the 51% Launch Bigger Bottle

A bigger, bolder half litre Savanna Dry, which is 51% bigger than the original bottle, is now available in stores and still offers the same crisp, premium cider. This means more Savanna Dry for you in a single serving!

Savanna Dry is a clear (100%) apple cider made from the juice of crushed Elgin apples and served in a unique see through bottle . The magic of transforming humble apple juice into sublime cider is all in the fermentation process. The original Savanna Dry 330 ml bottle has enjoyed the spotlight since it was introduced in 1996. “We strive to continue setting trends and offering alternatives for our consumers. The introduction of this new half litre Savanna Dry bottle is one such innovation,” says Savanna SA Marketing Manager, Liezl Dippenaar. There will be no questioning your cred when you’re seen enjoying a Savanna in this man size bottle. “It has the same crisp taste, is 100% apple cider and is dry,” adds Dippenaar.

The KWV 10 Year Old – a vintage brandy with a deep amber colour, complex full bodied palate and rich, lingering after- taste is a timeless classic. Matured in oak barrels for a minimum period of 10-years, this brandy has citrus and raspberry aromas, with a complex blend of peach and apricot flavours underpinned by spicy nutty notes. KWV 10 is a distinguished, vintage brandy for celebrating achievements with those who are meaningful to your success.

Extreme Hunter’s Can y and Max-Energ Zero Sugar

Hunter’s Extreme Zero now brings to the market a 275ml slim line can for added convenience. This slim can allows drinkers ease of use in any occasion, whether it be outdoor events such as picnics, shisanyama and music concerts or even when going on holiday. It contains all the energy but is a conveniently guilt-free alternative to other alcoholic energy drinks. Extreme Zero, has the same energyboosting qualities of the original Extreme, and was the first zero sugar-added RTD (ready-to-drink) in South Africa when the 275ml bottle was first introduced last year. There are no strong spirits to counteract the energising ingredients and therefore the energy is enduring and keeps you going throughout the night. “We are excited about the launch of our new 275ml Extreme Zero can and have no doubt that our local markets will enjoy Extreme Zero as a guilt-free alternative to the alcoholic energy drinks out there,” says Hunters’ SA Marketing Manager, Laura Mardon. The new Extreme Zero Can is now available in 275ml units, six-packs and full cases.

the Neew Try ta y on th Beach’ ‘Mains

Mainstay has added a new variant to their ready to drink cocktail range, “Mainstay on the Beach”. The new variant, commonly known as ‘Sex on the Beach’, is made from Mainstay Premium Original and combined with real orange, peach and cranberry pulp, making a refreshing ready mixed cocktail. “Mainstay cocktails are exotic fruit based cocktails that at a sip will transport you to exotic islands. We give Mainstay consumers more than a delicious drink, we offer a Mainstay lifestyle. We are encouraged by how well the cocktails are doing with consumers. Even though cocktails have been around forever, now our consumers can enjoy ready mixed cocktails at home, at dinner parties and functions without spending the whole night behind a blender,” says Kurt Hermanus, Mainstay South Africa Brand Manager at Distell. The ready to drink cocktail range can be purchased from leading liquor retailers nationwide and are available in a 1 litre box for R40 and a 3 litre box for R105.

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FEATURE

Responsible Drinking

o t s t n a W t n e Governm

1 2 ge to A Raise Drinking

METAL USED SPARES AD

early 80% of a group of surveyed Gauteng high school pupils regularly consume alcohol, according to findings released by the University of South Africa’s Bureau for Market Research (BMR). The survey found that of the 4 346 pupils in grades eight to 12 who were quizzed, 66.6% said they had been drunk, 44.8% had done “binge drinking” and 79.4% regularly consumed alcohol. Antoinette Basson at the BMR’s Youth Research Unit (YRU) says the study was motivated by the need for contemporary information on the subject, which she said, placed an enormous burden on South African society. “The YRU research study identified that more than half of the pupils surveyed, said they trust their parents for advice on drug use and alcohol consumption. Learners often find themselves in an environment where illicit drugs and alcohol are easily accessible and used by their peers, which make resistance very difficult,” the BMR said. Pupils stated they were using the substances for stress relief and recreation. Almost three in every 10 pupils (26.9%) who participated in the study said they use illicit drugs, with dagga being the most popular with a total of 95.4% of the drug users confirming they used it.” Basson says cigarette smoking and hubbly bubblies were becoming more popular among secondary school pupils, particularly girls, and were not associated with the negative consequences of tobacco smoking. Meanwhile Social and Development Minister Bathabile Dlamini announced that a bill, proposing that the purchasing age of alcohol be raised from 18 to 21 years, will be presented to the Cabinet before the end of the year, along with a bill for restrictions on alcohol advertising. Dlamini insists alcohol is an entry to drugs and unlawful behaviour among young South Africans. In her opinion children start drinking at a very young age with ‘sweet’ drinks and later drink hard liquor and graduate to drugs. “However, alcohol remains the most common primary drug of choice across the country and results in a burden of risks including accidents, injuries, teenage pregnancies as well as unprotected sexual behaviour which leads to HIV transmission,” she said. Alcohol and Drugs Counsellor, Caro Smit had previously called for government to raise the drinking age to 21 and to ban alcohol advertising. But Smit says

law enforcement has to play its role because people change behaviour if they are afraid of the financial and legal implications of their actions. She says government and organisations should put more resources to efforts aimed at educating people, especially children, on alcohol and its effects. According to SAB director of Corporate Affairs and Transformation, Dr Vincent Maphai, one out of every two teenagers in the average South African home is a user of alcohol. Their research shows that teenagers who use alcohol are three times more likely to be involved in violent crime and 50 times more likely to use cocaine. “SAB views underage drinking as totally unacceptable and is one of the most serious forms of alcohol abuse with an overwhelmingly negative impact on South African society as a whole.” SAB has partnered with the Department of Trade and Industry (DTI), the National Youth Development Agency (NYDA) and provincial Departments of Education to launch a comprehensive programme to tackle the scourge of alcoholism. The programme has launched in February this year and encompasses a series of interactive initiatives aimed at teens, but with strong links to parents, peers, teachers, liquor traders and the community. The programme called ‘You Decide’ is a multi-faceted intervention grounded in the latest thinking on the clinical and psychological facets of this complex problem, Maphai explains.

BUSINESS

Stokvel Column

24 Years of Stokvels

and Financial A S in Institutions t of the National Founder and presiden South Africa, Andrew of Stokvels Association ese e strides made by th th to in s ok lo e, el kh s Lu mes over two decade he sc ng vi sa ” al m or d “inf en officially recognise ago since they have be s. by commercial bank

with NASASA at the A-Train Night Club in Soweto on 25 August 1988 by myself and Bob Tucker, former Managing Director at Perm. By the end of 1988, 13 000 accounts had been opened, with a total balance of R19 million. By the end of 1989 the number had grown to 36 000 accounts with a total balance of R96 million. By the end of February 1990, 44 500 groups had opened accounts with Perm. By July 1991, Perm claimed to have about 10% of the stokvel business. “We have 75 000 stokvel groups in our books,” said Richard Ford, former Manager (Quickcash Marketing) at Perm.

As predicted in my book ‘Stokvels in South Africa’, in 1990, Perm had indeed R2 000, a figure that exceeded faced vigorous competition from other edbank through Perm the average balance on all other financial institutions for the stokvel (Previously the South African transmission or savings accounts. market in the past years as formal Permanent Building Society, a business learnt more and more about division of the Nedcor-Group) Based on this information, Perm was the first financial institution in South commissioned research into the stokvel the stokvel movement. Other banks followed in Perm’s footsteps by branding Africa to recognise the potential to do market in 1986. When asked to design various products to attract stokvel funds. business in the informal savings sector. the ideal product; respondents listed Standard Bank launched their stokvelthese six requirements: type product known as the Society How then did Perm end up with a large Scheme, amid protest from the informal black client base? And what prepared • The account was to be book-based, in sector. It is a fact that all major banks Perm for the opportunities that arose in other words, no plastic cards. A savings have some form of dealing with the the stokvel market? book can be taken to meetings and all stokvel market today, including the Post the members shown how much money Bank and Ithala Bank. The story goes back to the 1960s. In was in the account. those days building societies did not Since the first forays of Perm into the have segregated banking halls. They • The club decided how many, and who, stokvel arena, South African banks actively encouraged their clients to use should be authorised to sign had become increasingly interested their savings as an alternative to bank for withdrawals. in having a share of this market. Today cheque accounts, by offering unlimited all the major banks have a customised free cheque withdrawals. And they • There were to be no charges debited savings product for stokvels. fought for market share by offering to act against the account. as paymaster for companies paying their The banks all required stokvels to staff via transmission accounts. • A better- than – average rate of present their constitutions and to interest was to be paid, and the rate appoint a certain number of members Perm imposed no limitations on was to rise as the balance on the as signatories. The signatories have to minimum loans, was the first to account increased. comply with the Financial Intelligence recognise total household income as Centre Act (FICA), and thus have to a qualification to service the loan (as • No minimum balance was to present proof of identity and a fixed opposed to the breadwinner’s income), be imposed. address, among other things. We noted and was the first to lend to single black that, because some stokvels had a rather • And, after distribution of the savings women. Through its policy and actions short lifespan, the banks had adopted among members at the end of the Perm earned the respect and support of different strategies to encourage stokvel many black people throughout year, the account was to remain open members to keep their deposits in the country. so that the club could start saving the bank for longer. Standard Bank’s again in the new year without having In 1984 Perm’s Eastern Cape region Society Scheme, for example, waived to open a new account. conducted a study on customers’ the monthly management fee and bank savings habits. The survey showed that Perm wasted no time in deciding to charges on debit transactions, and accumulatively, branches in their the enter into a working relationship with a entered the stokvel into a monthly “save region had more than 2 500 savings credible, community-based organisation, and win” competition if the account accounts from stokvel groups, with namely, the National Stokvels balance remained above R5 000. combined balances exceeding R5 Association of South Africa (NASASA). million. This meant that the average The Club Account was officially launched Lukhele is also the author of the book Stokvels in balance on each account was around as a national product in conjunction South Africa

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BUSINESS

Stokvel Feature

StokvelS

MEs S inance F Potential Source to

outh Africa is facing serious socio-economic challenges. Poverty, unemployment and economic disparity due to low education and skills levels make it difficult for many to participate in the mainstream economy. This is also the reason many people resort to start Small, Medium and Micro Enterprises (SMMEs) to make a living, however, obtaining start-up and working capital remains a serious challenge to emerging and potential entrepreneurs. The University of South Africa’s Akwasi Arko-Achemfuor says township people can use the traditional saving scheme commonly known as stokvels to finance their start-up enterprises. A study conducted by Old Mutual found out that almost all the savings from stokvels are used for domestic consumption and buying semidurable goods and other household expenditures. Arko-Achemfuor says the funds can be invested in SMME activities because there is a high demand for start-up and working capital for SMME activities which the financial institutions are unwilling or unable to supply. He says government, nongovernmental organisations and development agencies interested

in entrepreneurship should come together to embark on educational campaigns about saving. “People need to be educated on how some of the money generated from the stokvel system can be used as a source of start-up and working capital for entrepreneurship. Stokvel groups must be encouraged to invest part of their savings in entrepreneurial activities for individuals and groups.” After he concluded his research in stokvel patterns, Arko-Achemfuor said stokvel groups and individual members indicated to him that they have not considered their savings as a source of start-up and working capital. “All the groups sought advice on how this can be done and where they could possibly invest part of their savings”, he said. Stokvel Consultant Busi Skenjana through her company, BSK Marketing, says her work is to unlock strategic partnerships between stokvels, private and public sectors. She has developed a unique brand activation concept in which brands are able to tap into the stokvel markets through their monthly meetings and events such as weddings and funerals.

Skenjana helped Kemano Investment, previously a traditional saving stokvel, to buy a property in Kruger Park where the group now runs their hospitality and tourism business and their property is fully paid up. She advised that stokvels can collectively play a role in the tourism sector through supplying other products such as linen. Through the consultation of Skenjana, the Kliptown Helping Hands, which was formed 25 years ago, was able to invest a total of R100 000 on the Johannesburg Stock Exchange market. “This is a group of 15 old women from Kliptown township in Soweto”, says Skenjana. The Sweet Harmony is a financial service co-operative and after Skenjana held workshops with the group, they secured a loan from the Rural Housing Fund and have upgraded their homes which were previously RDP houses. Skenjana says her special interest is to support stokvels and convert them into co-operatives adding that stokvels have potential to create wealth and must not only focus on short-term savings. www.spotongmag.co.za

REVIEWS

Tavern & Restaurant Reviews

S W E I V E R T N A R U Tavern & RESTA

ambitha N Soweto An Upmarket Eatery in

revolutionary Street is named after the author of the the s BW Vilakazi, who wa tionary. Dic d ate nsl Tra lu English/Zu

(nambitha – to Nambitha Restaurant, most popular taste in isiXhosa), the heart of Soweto, the in y upmarket eater erse with s with a touch of Their menu is really div serves soul food recipe for ue ven sine that al cui ide n the ica it Afr g Western and à la carte makin delicious malad includes appetising an Sunday luncheons. h spinach and wit ved ser ) l mogodu (tripe ica tor his the in d als are also ate me The restaurant is loc pumpkin. All their main former of ty ini samp vic e, ric the p, in pa t, r ee he Vilakazi Str served with eit d an use ho ’s ela nd President Nelson Ma or dumplings. m. Vilakazi Hector Peterson’s Museu

has previously Nambitha Restaurant h as Britain’s most suc s rie hosted lumina ur Sir Richard successful entreprene hosted Archbishop r yea t Branson and las was celebrating Desmond Tutu when he th his 80 birthday. serves as an The restaurant not only range of a ers eatery - but also off bookings, t ffe bu ing lud services inc venue hiring. d an conferences, catering

Cast members of theatrical play The Brothers Size: Rodrick Covington, Timothy Bond, Sam Encarnación with comedia Deep Fried Man and a friend at Nambitha

Sakhumzi Flavour Taste of Township Enjoy the

The Sakhumzi Bar and Restaurant in Orlando West, that’s where Gautengers and tourists from across the world enjoy the taste of the real township flavour and experience the true spirit of ubuntu (Humanity). The restaurant has a spacious and modern dining area with a distinct gastro bar vibe offering delicious home-cooked meal by ever-smiling staff that is always happy to help. Each meal is paired with a wine and their exclusive self-serve wine and beer stations allow patrons to enjoy variety of local wines and craft beers.

Sakhumzi Chef: Life Ndlovu

The restaurant’s major customer base is the middle class Sowetans, young adults and older people, who patronise on weekends. During the week the restaurant host corporate South African bookings and international tour companies, that requires service excellence of the highest quality.

Wine and Dine lace to P he T i z Restaurant Vilaka Restaurant Vilakazi is a modernly decorated space that pays attention to detail all the way down to their cutlery sets. With plasma TV screens surrounding the restaurant and soulful music playing in the background, you can’t help but enjoy your dining and wining experience. The restaurant boasts both Mediterranean and local cuisines with a menu that caters for all types and functions, from the seafood lover’s right down to those who enjoy their traditional samp and lamb tripe. With good food, quality drinks which include local and international wine lists and divine cocktails, you can’t help but walk out a satisfied customer. Located right in the heart of Soweto in the upbeat and the iconic Vilakazi Street, this restaurant is in close reach of all the rich South African history that everyone needs to know about.

Floor Manager at Restaurant Vilikazi, Profile Mohale

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BUSINESS

Liquor Licensing & Trading

E T A R A P E S S T N A UNB W R O F G N I S N E C I L LIQUOR

AFRICAN L A N O I T I D TRA BEER

nited National Breweries (UNB), in partnership with the Gauteng Liquor Licensing Office, hosted a Traditional African Liquor Indaba (Summit) recently in Alexander to highlight the challenges faced by the traditional beer sector. The Indaba was supported by the Traditional Leaders and Healers Association, Department of Social Development and retailers of traditional African Beer. UNB is the leading manufacturer of Traditional African Sorghum Beer (Umqombothi) in South Africa. National Manager for Licensing and Trade Relations at UNB, Gift Sethunya, said they were concerned about the regulating and licensing of African liquor and the negative effects of homebrewed concoctions. “We decided to engage the authorities, communities and all our stakeholders regarding these matters to find permanent solutions.” Sethunya said the current liquor legislation in Gauteng and other provinces makes trading of African Beer difficult because it has been regulated the same as commercial liquor which has a high consumption and huge market. “For example when the current legislation restricts the operation of more than one liquor outlet within 500 metre radius, it closes doors for anyone who would like to sell African Beer because in township there is always a tavern or shebeen within the specified zoning. And it’s for this reason that we’re proposing that trading of African Beer be regulated independently because the legislation applied in the current form closes opportunity for traders of Traditional African Beer.” Sethunya said after engaging with the Liquor Licensing Office in Gauteng and Free State, UNB’s proposed Traditional African Beer Act has been included in the Draft Liquor Bill which is still to be tabled before the legislature in the respective provinces and they will also engage other provinces. He said the UNB was also concerned about the home-brewed concoctions and they want government and all concerned stakeholders to step in and monitor the manufacturing of the beer. Sethunya said it was important that all home-brewers comply with the Liquor Product Act for the hygiene and health safety of consumers.

United National Brewery Licensing and Trade Relations National Manager, Gift Sethunya

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He said UNB is compelled to champion the cause of Umqombothi and strives to uphold the image of this amazing product in all of its endeavours of producing and taking it to market.

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TEL: (018) 293 0820

BUSINESS

Entrepreneur Feature

Skills and eed N Entrepreneurs

n i a t s u S o t l Capita s e s s e n i s u B their A

ccording to Liz Zambonini, the chief executive of The Hope Factory, an established Enterprise Development Initiative of the South African Institute of Chartered Accountants, most businesses do not fail because the owner did not work hard – they fail because the owner did not have the necessary skills and knowledge to succeed. It’s for this reason that a holistic and inclusive outlook is vital for the country to stimulate the growth of new businesses. Zambonini says the most common challenges entrepreneurs face include lack of skills, limited access to markets, no seed capital, lack of work experience, and insufficient self-confidence. If any of these areas are not addressed the entrepreneur’s chance of success is reduced dramatically. Director for the University of Johannesburg’s (UJ) Centre for Small Business Development (CSBD) Dr Thami Mazwai noted with “great concern” that only 1.4% of the South African population can sustain a business past four years. Mazwai also shares some of Zambonini’s sentiments saying the key to improving the country’s low level of entrepreneurship lies in providing fledgling entrepreneurs with mentorship, grants, loans, skills training, access to market and variety of solutions including preferential procurement and investment.

President Jacob Zuma speaks at the UJ’s CSBD Conference

(Photo Courtesy of GCIS)

It’s estimated that home-based enterprises provide R6 billion to the country’s annual Gross Domestic Profit (GDP), which is why supporting fledgling entrepreneurs must be the focus for all stakeholders going forward, says Mazwai. In addition, entrepreneurship is important for economic growth, productivity,

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BUSINESS

Entrepreneur Feature

Soweto entrepren eurs

attending the UJ’s

Conference on Sm

innovation and employment, and can lead the way in overcoming the many economic, social and environmental challenges the country is facing.

all Business Develo

pment

This year’s CSBD’s International Conference, held recently at UJ’s Soweto Campus, looked at among others issues, steps to developing a successful entrepreneurship:

Executing Upon Opportunities - execution or the ability to generate the most value out of an opportunity, requires a unique Before the country can fully reap combination of creativity, passion, the substantial rewards that persistence, focus, responsibility, entrepreneurship can provide, policy intelligence, planning and energy. Spotting Opportunities - the entrepreneur Having an expertly written business plan makers and other stakeholders must must be able to identify a market. Often will allow the entrepreneur to see the first understand and address the obstacles facing entrepreneurs. Lack this need is seen through inefficiency in outline of the actions that must been of a supportive and co-operative the market - something that doesn’t work taken to ensure success. environment is just one of the barriers quite the way the entrepreneur would faced by would-be entrepreneurs in Understanding the four steps to like it to. As a result, the entrepreneur South Africa. Other impediments include works out a potential solution and the entrepreneurship enables entrepreneurs crime, poor infrastructure, costs and to better understand the path that they opportunity is born. regulations, all of which restrict new are embarking upon. It’s a path filled business development, says Mazwai. with potential pitfalls, but also filled with Assessing Opportunities - many entrepreneurs keep a journal that details tremendous excitement, satisfaction and According to the latest report from the potential to build enormous value. the myriad of opportunities they come Global Entrepreneurship Monitor; Small, across each day. While it takes a creative Medium and Micro Enterprises (SMMEs) skill set to identify opportunities, it takes Mazwai says people in townships contribute 40% of South Africa’s GDP think their problems are unique, but an analytical skill set to assess them. and employ more than half of the private that couldn’t be further from the truth. Each opportunity should be assessed sector workforce. This makes small If we are to be successful in establishing, to determine its likelihood of success businesses an indispensable player in sustaining and growing new enterprises, and the financial and human resources the economic growth of South Africa. we must encourage the belief that required to execute upon it. With an estimated 33% of people in entrepreneurship is a worthwhile and the country between the ages of 15 and important endeavour,” he urged. Selecting Opportunities - entrepreneurs 34 being unemployed, initiatives like should assess their potential Research by The Hope Factory the third annual International Soweto opportunities and come to a firm shows that by growing the pool Entrepreneurship and Small Business Development Conference are vital. Their decision regarding which one to execute. of entrepreneurs, not only do the Once selected, the entrepreneurs individuals themselves profit but it aim is to allow township entrepreneurs cannot second-guess themselves. To do also supports the country through a the chance to engage with experts from reduction in social grants, an increase all over the globe about how to enhance so would lessen their focus and drive in employment and lower crime and their skills and overcome the challenges towards the selected opportunity, both of which are critical in achieving success. poverty levels. they face. www.spotongmag.co.za

BUSINESS

Assurance

E C N A R U S S BUSINESS A

What type of assurance is pense they ex an is suitable for a small business e nc ra su as s rs feel busines s. se es sin such as a restaurant, bar or bu ed ish Some business owne bl ta it as a luxury for es tavern in townships? cannot afford, or see ess assurance can be expensive, it’s an of sin th bu ng le ue tr or s e it’ siz , gh ry ou st th Al indu In the case of a sole proprietor, Business ess, regardless of the expense every busin ude in its budget. Loan Cover can be used for short to cl ager medium term business loans and existence, needs to in Ferdi Booysens, Greenlight Product Man ks overdrafts. If you have key personnel, Donald Makhafola as estions regarding business assurance. Key Person Cover would ensure the qu l ia uc cr at Old Mutual business can continue should the key person die or become disabled. Business Overheads Replacement Cover is important for any self-employed person, because if you’re temporarily off work for two or three months, your overheads can be covered with the monthly proceeds from your cover.

Ferdi Booysen, Greenlight Product Manager at Old Mutual

How important or necessary is it for a small or start-up business to have business assurance? If you look at small businesses, the pressing concerns are sales, client service and profitability. Since business owners are focusing on these aspects of the business, holistic enterprise risk management often gets left behind, which means that significant risks to their businesses are overlooked. Some of these risks are related to the death and disability of business partners or key individuals within the business.

How can smaller businesses be encouraged to buy business assurance? 28

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Succession planning and the exit strategy for the business owner will drive the right conversations around business insurance between the owners and their financial advisor. As a starting point, advisers would focus on the individual needs of the business owner through estate planning. For instance, how will the family be taken care of if they die or are too disabled to work? Estate planning however should go hand in hand with the continuity plans of the business, and together they form the foundation for good succession planning. In the case of a family business, it’s important to identify the successor(s) and their role(s) and responsibilities within the business, where ownership is intended to continue into the next generation.

Should you as a business owner have business partner(s), a Buy-and-Sell Agreement should be put into place. If one partner dies, the remaining partner(s) will have the option to buy out the deceased partner’s share in the business. This will ensure that the business can continue with business as usual. A Buy-and-Sell Agreement must be in place between the partners alongside the Buy-and-Sell Cover, and the agreement regulates the terms of sale on the death or disability of a partner. Without Buy-and-Sell Cover, the remaining partner will face delays and uncertainty while waiting for the deceased partner’s estate to be wound up. The remaining partner may also end up with the spouse or children of the deceased as business partners, which may put undue strain on the running and profitability of the business.

What are the common risks faced by these kinds of businesses in regards to assurance? Let’s say for example that the business is a partnership. The first risk is that one of the partners dies. There’s also a risk to the family of the partner who dies – especially if the family is reliant on the business owner for their household income. And here are some of the questions to ask: • What impact will it have on the management and income of the business?

• Will the bank call in the business loan after one of the owners who signed surety for the loan dies? • What will happen to sales or service if one of your key employees are no longer at work? • How long will your emergency funds cover your overheads if you are temporarily unable to run the business? These are the kind of risks that can be be covered with Greenlight for Business (Old Mutual Insurance Product).

What would be the consequences of not having business assurance? It could have huge financial implications for the business. For example: Two business owners both sign surety for a loan. If one of the partners dies and the bank calls up the loan, there will be a huge impact on the personal estate of the deceased, the other business partner, as well as on the business. The remaining business partner will have to come up with the funds to settle the loan and if he can’t, it could lead to the business having to close its doors.

What are the common mistakes business owners make when choosing or buying business assurance and how can that be avoided?

Business owners should take note of the following:

When it comes to Buy-and-Sell Agreements, the agreement means very little if it’s not structured correctly or updated annually. The Buy-andSell Agreement provides funds for the remaining partner to buy out a portion of the business from the deceased in the event of death or disability. Partners need to ensure that their Buy-and-Sell Agreements and company valuations are up to date. They’ll also need to ensure that the necessary cover is put in place and reviewed on an annual basis. This is where a professional financial adviser will play an invaluable role, and at Old Mutual we have specialised financial advice available to business owners through our accredited business assurance advisors and brokers.

• The credit rating of the company (For example, Old Mutual is the only AAA rated insurance company).

How do you evaluate whether insurance company is reputable or not?

• The capital strength of the insurance company (Are there enough surplus assets to cater for a financial disaster?)

• The company’s claims philosophy and statistics – this is where the real benefit of having cover is shown. • The sustainability of the premiums - some companies have premium increases year-on-year that may be unsustainable over the longer term.

What are the risks of buying business assurance products? The business will need to ensure that they consult a professional financial advisor with experience in business assurance. Your business solutions need to be structured correctly, taking the companies specific structures, needs, and tax considerations into account. The business must also have sufficient funds to pay their insurance premiums.

consumer goods council of south africa

Responsible. Inclusive. Simple. Effective.

Your Voice in the Industry The Consumer Goods Council of South Africa (CGCSA) represents over 12,000 member companies in the retail, wholesale and manufacturing of consumer goods.

Become a member today

Join CGCSA and receive a range of benefits and services such as:

The CGCSA business units provide their own specific benefits and services to members: Leads the design and implementation of global standards to improve the supply and demand chain.

• Belong to a network of over 12,000 businesses in the retail, wholesale and manufacturing sector in SA • Improve your business performance through training, seminars and workshops offered by CGCSA • Participate in debate forums on legislative, economic and political matters that affect the industry

consumer goods council

consumer goods industry affairs

consumer goods council

• Enjoy quality representation in various statutory bodies that regulate the industry • Interact with suppliers, service providers / other players in efficiently resolving non-competitive matters For more information on the Consumer Goods Council of South Africa and any of its business units, or to become a member, log onto www.cgcsa.co.za or call 0861 242 000.

south african retail council

consumer goods council

food safety initiative

consumer goods council

consumer goods risk initiative

Promotes the industry’s understanding of the legislative and regulatory framework governing it. Deals with non-competitive issues within the retail industry. Protects public health, consumer and industry interests in the area of food safety and nutrition. Aims at reducing crime in the consumer goods industry in South Africa.

BUSINESS

Finance & Banking

is low F ash C the Income re u t i d n e p x E d n a r u o Y f o n r e t t a P Business

gap occurs it means your cash inflows and cash outflows don’t keep pace with each other, leaving your business short of cash. This is an especially common problem for small businesses, where cash outflows may repeatedly exceed cash inflow.

ash flow management is the lifeblood of your business because it enables you to track cash as it flows in and out revealing to you the causes of cash flow shortfalls and surpluses. As such it’s imperative that you understand both the inflows and outflows accordingly. Cash is generated into a business through: • Sales of your product or service. • Loan or credit card proceeds. • Asset sales. • Owner investments.

She says the most important aspect of cash flow management is avoiding extended cash shortages because when you’re having a gap between cash inflows and outflows you won’t be able to stay in business for too long or pay your bills for any extended length of time. “Therefore, you need to perform a cash flow analysis on a regular basis and use cash flow forecasting so you can take the steps necessary to head off cash flow problems.” Ndlovu says as a business owner you have to keep a close eye on your cash flow because by doing so, you will forecast potential cash flow problems before they occur. This helps you see that the business is in the red, which is a wakeup call to take action immediately.”

Cash flows out of a business through: • Business expenditures. • Loan or credit card principal payments. • Asset purchases. One of the easiest ways to monitor • Owner withdrawals. your business cash flow is to compare the total unpaid purchases to the total These cash inflows and outflows can be sales due at the end of each month. “If categorised into three main business parts: the total unpaid purchases are greater • Operating, this covers sales and than the total sales due, you will need to business expenditures. spend more cash you receive in the next • Investing, this covers asset sales and month, indicating a potential cash purchases. flow problem.” • Financing, this covers loan payments and proceeds, and owner investments Ndlovu emphasises that business owners must see themselves as and withdrawals. employees and as such must earn Financial Adviser at Mmafana a monthly salary and not use the company’s money for personal Accounting, Tax and Payroll Services, expenses. “That will make a huge Lucy Ndlovu says when a cash flow

difference and serve to grow the company because knowing that they are able to get a salary will make them work hard.” Here are some tips on how to manage cash income more effectively from Zandile Nkabinde, who’s a practitioner at Azuka Payroll & Accounting Services: • Take full advantage of creditor payment terms. If a payment is due in 30 days, don’t pay it in 15 days. • Use electronic funds transfer to make payments on the last day they are due. You will remain current with suppliers while retaining use of your funds for as long as possible. • Communicate with your suppliers so they know your financial situation. If you ever need to delay a payment, you will need their trust and understanding. • Carefully consider vendors’ offers of discounts for earlier payments. These can amount to expensive loans to your suppliers, or they may provide you with a chance to reduce overall costs. • Do not always focus on the lowest price when choosing suppliers. Sometimes more flexible payment terms can improve your cash flow more than a bargain-basement price. • Develop discipline and curb spending. You have already taken a big risk by starting your own business. The last thing you need for your business is a financial loss. An accountant or business financial planner can intelligently guide you through the necessary steps to reach your financial goals, but if you don’t have self discipline, all efforts to reach financial fitness will be in vain.

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MARKETING

Feature

THE EFFECTS OF

Banning Alcohol Advertising

g, is to alcohol advertisin of g in n an b e th on of Health Dr Aaron ft legislation r ra te d is al in si M . er ar ov ye tr n is co The d of th ment before the en hol advertising will reduce underage ia rl Pa in d le b ta e b s that banning alco Motsoaledi, believe rge of alcohol abuse in the country. ou drinking and the sc

Image by Jason Alden, One Red Eye

arketing analyst Chris Moerdyk says a total banning on alcohol advertising would be a “tragedy” that sees benefitting big established brands over smaller brands both in terms of product and retail outlets. “Both Brandhouse and SAB have openly admitted that a complete ban would benefit them far 32

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more than smaller players. Both have also been quite open about the fact that this concerns them as they would prefer to do business in a competitive market than one that has become somewhat monopolistic due to legislation.” Speaking to Spotong Magazine, Moerdyk, who has also done the preliminary

impact assessment on the proposed ban of alcohol advertising, ascertained that smaller brands would feel the pinch quite considerably. According to Moerdyk smaller brands would face challenges in terms of launching new products to compete against bigger established brands.

“This is what advertising is all about, letting people choose one brand over the other, not persuading them to drink. A dvertising cannot force anyone to do anything, it’s not that powerful.” Asked how a complete ban on alcohol advertising would change the liquor marketing industry, Moerdyk says it would not change the industry all that much but it would simply mean that the R2 billion spent on advertising would be moved into promotions and other direct marketing efforts. He says marketers can still explore other avenues to promote their products as has been proven conclusively by the tobacco industry. “We have to remember that although the anti-tobacco lobby claims that since advertising was banned the incidence of smoking has decreased, these statistics only cover official sales. We know that upwards of 20% of all smoking in South Africa is from illegally imported cigarettes, so in my opinion banning advertising has had no impact

whatsoever. What has reduced smoking, if it has reduced, was banning smoking in restaurants, public places and so forth, on top of which smoking has become a lot more socially unacceptable. I cannot see drinking in moderation ever becoming socially unacceptable.”

mean irresponsible in terms of these adverts persuading people to start drinking so that they can become cool, I mean irresponsible because it’s simply bad marketing.”

However, Moerdyk says he encourages liquor brands to market their products responsibly “not because I am a do-gooder” but because the more responsible marketers are today the more they will be accepted by consumers. In his opinion alcohol advertising is irresponsible in portraying certain lifestyle advantages. “I don’t

Despite Minister of Health Dr Aaron Motsoaledi’s honest wish to ban alcohol advertising, Moerdyk believes that given the wide ranging financial and trade implications this may have on the economy, many of his cabinet colleagues, who will have to be part of the legislation, will come out against a complete ban.

Marketers cannot encourage young people to start drinking without physically bribing them or getting them Moerdyk says in countries such as hooked like the drug dealers do. Young Canada and Denmark where alcohol people do not start drinking because advertising was banned, it was found that in the first year alcohol consumption they see adverts — they start drinking because their friends or their parents dropped by between five and eight do it. In any event, most media owners percent. After that alcohol consumption complain that fewer and fewer young rose to normal levels. These countries also found no decrease in the incidence people consume mass media these days, so frankly, advertising is not having of alcohol abuse and have since much influence on them, says Moerdyk. rescinded the complete ban.

RECYCLING

Feature

SAVE THE T N E M N O R I V EN Y E N O M E K A M D N A

Can Recycling

ollect-a-Can is a recovery as opposed to a profit driven company and has proven that it is self-sustainable by managing its operations and cost structures at optimum levels, assuring the respective southern African governments, environmentalists and the public of Collect-a-Can’s long-term stability. Over the past 19 years, Collect-a-Can has been at the forefront of minimizing the negative impact of used beverage cans on the environment. “We have subsequently been involved in the recovery of all scrap tinplate generated in the tinplate and can-making processes, including sludge, cut-offs (skeletons), misprints, sub-standard fills, and most importantly the recovery of used metal cans,” says Operations Manager Gregory Masoka. The core business of Collect-a-Can is to facilitate the recovery of used beverage cans, although the company also recover aerosol, aluminium, food, oil and paint cans, thereby addressing the cradle-tocradle needs of the metal can industry.

What happens to cans once they reach Collect-a-Can Collect-a-Can does not recycle steel itself. All cans recovered are either compressed into bales and sold on the open market to steel mills to produce new prime steel or turned into briquettes which are sold to the mining operations. . Collect-a-Can has a depot in Aeroton near Soweto where they buy cans directly from the public and other established can collectors. Collect-a-Can Tel: 011 494-3623

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Plastic Glass Recycling Recycling

lass collectors are predominantly partially employed or unemployed South Africans, who are able to supplement their income by collecting waste glass in the townships and outlying areas, and selling it for cash. The Glass Recycling Company is South Africa’s official organisation for promoting glass recycling and has assisted over 700 entrepreneurs with income generating opportunities. The Glass Recycling Company offers primary glass collection infrastructure, business training and drop-off points for collectors where returnable bottles are collected and sold back. All glass bottles and jars (green, amber, clear) whole and broken bottles and jars are acceptable. Buy back centres offer opportunities for energetic entrepreneurs to create sustainable businesses and are also a critical link in the collector market, making it easier for them to deposit their collected waste glass and thereby earn cash. Entrepreneurs who have access to a fourton or skip truck can build sustainable businesses by collecting glass in suburbs where residents are actively separating at source and recycling waste glass. The more entrepreneurs there are who embrace this business opportunity, the more people will recycle.

Preparation Tips: • In South Africa, it’s not necessary to wash glass before placing it into “Glass Banks”. • It’s preferable to remove corks and lids. • It’s not necessary to separate different coloured glass into separate banks.

lastic bottle recycling has led to job creation in the waste management, product development, manufacturing and marketing sectors. It has been estimated that the industry creates 14 000 income opportunities for collectors. Direct jobs in the Polyethylene Terephthalate (PET) bottle recycling industry have a capital investment amount of R130 million. Recycling demand for plastic bottles has outstripped supply for many years and South African recyclers now have the capacity for an increased number of bottles for reprocessing. Plastics are the material of choice for many manufacturers and will form an increasing proportion of household waste in the future. Research conducted by the United Kingdom based recycling organization Recoup, has shown that if plastics were no longer used in packaging the weight of packaging materials would rise by 300%, the volume of rubbish would expand by 150% and the energy consumed by the packaging industry would increase by 100%. Approximately 12% of household waste is packaging waste. Estimates are that approximately 3% of this, by weight, consists of plastic bottles. They are easy for the public to identify and remove from the residual waste stream.

For more detailed information contact the following organisations: Buyisa-e-Bag Tel: 011 452 0414 PETCO Tel: 0860 147 738 Extrupet Tel: 011 865 8360/1 South African Plastics Recycling Organisation Tel: 083 654 8967 Polystyrene Packaging Council Tel: 012 259 0554

Paper Recycling

aterial recycling has the potential to create employment and other economic empowerment opportunities through Small, Medium and Micro Enterprises. Recycling also saves the environment in terms of reducing the amount of recoverable packaging materials ending up in landfills. According to the Paper Recycling Association of South Africa, recovered paper is an international commodity, with over 36 million tons traded annually. In paper and paperboard production, recovered paper is the most important and fastest growing raw material. The association confirms that during the past 15 years, the recovered paper collection and utilisation in paper manufacturing has doubled from 84 million to 167 million tons. The first step to start your own business in this industry is by collecting old newspapers and selling them to a recycling plant in your area.

Tips for Paper Recycling: • Get a separate reusable container for your paper waste. • Separate your paper waste from your other waste by placing it in the container. • Keep your waste paper clean and dry – quality is important for a good end product. Buyers will not accept wet paper. • Find out from your local recycler what paper grades should be kept separate from the rest.

Some Important contact details in the recycling industry: Paper Recycling Association of South Africa Tel: 011 803 5063 Mondi Recycling Tel: 0800 022 112 Nampak Recycling Tel: 0800 018 818 Sappi Tel: 082 876 7468 Lefatse Larona Recycle Tel: 083 413 8162

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COLLECT A CAN AD

Promoting

game hat began as a friendly u do an oy oh Th n ee tw be sa and Mlamlankuzi Tavern w s no ha , ago rs yea of ple cou t Pool become the Orlando Eas nt. me Masters Tourna Tavern the Held at Thohoyandou its inception, ce sin s, tournament ha s competing in a yer pla ol po 10 ed featur t, but in the last ma for n single-eliminatio yers has doubled year the number of pla the event was of nd to 20. The first rou mination and played in a double eli ck to ba nt the next round we n. tio ina im single-el ner Patrick Thohoyandou Tavern ow es attract gam ol po s say i Mtambelen tavern because more customers to his ile watching their wh ing nk dri they enjoy ern plays a tav is favourite game. “Th table games ol po g tin mo pro big role in w players. ne ing in the area and groom

SPORT Pool

Pool Games in Taverns ed because more We are very encourag erested in the people are getting int past pool was the game these days. In only played in d an rt spo ip not a townsh ” says Patrick. as, the white dominant are ombo, from the 39-year-old Russel Riv erienced and Chiawelo Team, is an exp player who ol po d an talented snooker ng South Black currently plays for Gaute Snooker is s,“ say bo Ball League. Rivom re you play mo the rt, spo er like any oth

d that’s the key it, the better you get an r player. Once oke to become a good sno l skills of ica hn tec the you have learnt e els the game, everything becomes easy!”

ne who is Mtambeleni says anyo rt in the interested in taking pa as they are me lco we is competition ung and yo always looking for new, can groom to y the t tha s talented player s. ion become future champ

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COMMUNITY LEADER Profile

of orefront F Sheâ&#x20AC;&#x2122;s in the

Transforming Education

asoned nele Twala, is a se Za , ge d ri B at r to d executive direc vil society in The newly appointe h of knowledge about the role of ci ills in fundraising lt sk ea ve w ti a ea h it cr s w st er oa ag b man se . She ds transformation the profile and pur ar e w at to ev g el in to ut ib ed tr us n e co sh anagement which izzy heights, leaving them with an and stakeholder m . South Africa to d in id A n e she joined Bridge io or ct A ef b of or ct se y strings et ci d in the civil so entrenched foothol

Executive Director of Bridge, Zanele Twala

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ridge is an education-focused non-profit organisation that links innovators in education; including representatives from civil society, government, funders, practitioners, teachers, learners, principals, parents, research organisations and unions. It connects them together in communities of practice that promote the sharing of good and effective educational practices so there can be an increase in trust, a reduction in duplication, a maximising of resources, and an impact on policy so that the education system as a whole can benefit. Bridge focuses on the areas of school leadership, teacher development and accountability, the socio-economic conditions of learners, as well as learning and teacher resources. Twala left the country at a very young age when she went into exile with her parents and came back to the country in 1991, just after the release of the former president Nelson Mandela The multicultural school in London where she was teaching, presented her with a set of diverse contextual opportunities and challenges which shaped her professional growth and career for life. The choices that she was to make in her future career were undoubtedly influenced by the experiences she had in those early years of teaching. The daily experiences of working with children from ethnic minority backgrounds who were persistently underperforming and the realisation that there are a number of factors, internal and external, that influence educational achievement made her realise how much these factors can either be an enabler or a barrier to a child’s educational success. These factors range from a child’s socio-economic background, policies and practices that inform learning and teaching to a lack of access to a number of critical ingredients for success. Twala explains that, “Growing up in a home where both my parents were teachers, made me realise the centrality of teachers in our lives. Teachers play a fundamental role in any individual’s life; they have a great influence in the choices we make in later life.” Twala’s earlier experiences in education set her on a path and sparked a desire to mitigate the factors which inhibit educational success. After two years of teaching in inner city schools, she pursued a M.Ed Degree in International Management and Policy in Education at the University of Birmingham. Twala’s educational career spans from an educational researcher, co-

publisher of a book and content in a range of educational subject matter to policy-making, policy analysis and directorship roles. Twala has served on a number of committees and Boards, contributing to their activities through her knowledge and experience in research and management. These include the Advisory Personnel Committee, the Transformation Team of the Department of Education and the South African Board of the “Slave Route” Committee on behalf of the ANC Parliamentary Constituency. She has also served as: a Board member for the Junior Achievement South Africa, a Trustee of the Youth Development Network, a Board member of the Education Foundation and Council Member for Africa in the Junior Achievement International. She served on the Presidential Working Group for Women, the SA African Peer Review Mechanism Governing Council and the board of the Centre for Policy Studies. Twala has worked at the University of Witwatersrand, the Independent Examinations Board, the National Department of Education, Junior Achievement, The South African NGO Coalition and, most recently, ActionAid International before joining Bridge. Twala has published a book in collaboration with Michael Cross and Gillian Klein called Dealing with Diversity in South African Education: A Debate on the Politics of a National Curriculum. She has also contributed chapters in two books titled From Apartheid to Modern Racism: The Case of Open Schools in South Africa, and another titled The Long Shadow of Apartheid Ideology. Twala has produced a number of research reports focusing on the transformation of South African education in a post-apartheid South Africa between 1992 and 1995. Very recently she contributed to a newly launched book by Lauretta Ngcobo titled Prodigal Daughters, a book about South African exiled women. Contributors to the book include ANC Chairperson Baleka Mbete, human rights activist Dr Brigalia Bam and South African Ambassador to Canada Dr Mohau Pheko among others. Twala says the book is dedicated to all women - as we celebrate Women’s Month - a celebration of women that made immense contributions into the political liberation of the people. The contribution she made to the book was on behalf of her mother Judith Nomsa Mkwanazi.

“Young girls must know that in the past women did not sit on the periphery and fold their hands - they were part of the struggle. Young women today must carry the battle and struggle further in their own ways. But without a quality education it would be difficult for them to articulate their aspirations. It is also disturbing that young girls constitute high level of school drop outs in the country, my conviction is that we can break the cycle of poverty by providing children with a better education for them to be empowered, make a difference and to sustain their lives socially and economically. As the saying goes ‘when you educate a woman you educate a nation’ and that has proven to be true in my life.” My father told me he had no money to set up a trust fund for me - but he committed to put me through university where I would get educated and later in life, I would pass that to my children and future generations. In other words that was the trust fund he was giving me. Twala says Bridge’s main challenge is funding and they’re planning to forge a partnership with government. It is their hope that government would realise that it’s sitting with money and resources that it can channel to where it’s needed the most. “Now is the time that as a nation we should start working together. If this government can succeed in providing quality education, more people will get educated and we would achieve the economic liberation that everyone is making a fuss about.” she says. Twala states research has shown that there are a lot of unqualified teachers in the country who are teaching our children and the blame cannot continue to be laid at the feet of these teachers as they were produced by a dysfunctional system. Unfortunately, the current system continues to reproduce this state of affairs. It’s quite criminal to have children learning under trees, without toilets – it’s very inhuman and undignified. “This government has to take responsibility and be accountable for whatever happened in that department. Why do we have cabinet ministers and officials if none of them want to be accountable? My sense is that as long as we don’t have accountability in the system and measures of accountability, and ways of dealing with failures in the system, we will not move forward as fast as we would like to. We want leaders that are in service to others, like our Former President Nelson Mandela and not leaders that are in leadership because they have acquired a position,” says Twala. www.spotongmag.co.za

WINE

Feature

Wine Industry Encourages

ractices P abour L Ethical

abour organisations and wine producers in the country have agreed to support the programme to fast-track the implementation of fair labour practices on wine farms and in cellars with the aid of the Wine and Agricultural Industry Ethical Trade Association (WIETA). WIETA is a non-profit organisation that actively promotes ethical trade in the wine industry value chain through training, technical assessment and audits to assess compliance with its code of good practice. Stakeholders include producers, retailers, trade unions, Non-Governmental Organisations and Government. The fast-tracking ethical programme will be implemented in three phases, starting with the simultaneous training of workers, owners and management in labour law and the WIETA code of fair trading principles. All training manuals would be supplied free of charge by WIETA. After the initial training phase, all producers would be required to complete assessment forms to determine their level of compliance and will get further support from WIETA in taking the necessary steps to address gaps. In the final stage of the process, producers would be required to pass a full WIETA audit, involving on-site inspections. WIETA chief executive Linda Lipparoni said WIETA was also considering the recognition of ethical, health and safety audits undertaken by other recognised bodies to facilitate the accreditation process. A seal would be introduced to acknowledge and accredit wineries and farms that followed ethical practices in a bid to protect them from any potential negative publicity resulting from those who flout the law. Lipparoni said the fully traceable seal was developed to promote awareness of the production integrity followed at every stage of the supply chain from vineyard to bottle.

Waterkloof Wine Estate workers leading horses

The fair labour initiative was supported by foreign retailers, the Food and Allied Workers` Union, Sikhula Sonke, Women on Farms, as well as established industry organisations such as the SA Liquor Brandowners` Association, Wine Cellars SA and producer organisation VinPro. The WIETA code of good practice is premised on the base code of the International Labour Conventions` Ethical Trading Initiative and also incorporates South African labour legislation. It precludes the use of child labour, asserts that employment should be freely chosen and that all employees should have the right to a healthy and safe working environment. Amongst the conditions it sets are out that workers should have the right to freedom of association, a living wage and be protected from unfair discrimination. Worker housing and tenure security rights should also be respected.

To be entitled to carry the ethical seal, brand owners would have to enter an annually renewable, legally binding agreement with WIETA. And to ensure total traceability, brand owners would have to identify all their suppliers, of which 60% The WIETA which is believed to be a world- of their suppliers would also have to be first amongst wine-producing countries will WIETA-accredited, with the other 40% monitor compliance amongst members. demonstrating that they were prepared Only those producers who meet the for accreditation. criteria set out by WIETA will be entitled to use the seal on their wines. It’s anticipated VinPro chief executive Rico Basson said that the first seals will be granted later this the initiative was intended to increase the confidence in South African wines year to currently compliant producers. 40

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both domestically and internationally and to capitalise on the industry`s global leadership in eco-sustainable production. “Wine lovers have the right to know that the wines they enjoy have been made with respect for the environment and in accordance with ethical working conditions.” “Our industry has built a reputation for advancing environmentally sustainable wine production. Now is the time to match that reputation with an infrastructure to promote social sustainability. As a start, we need greater awareness and implementation of the law with both workers and producers understanding their rights and responsibilities,” he added. The department of Agriculture, Forestry and Fisheries welcomed the ethical seal. The departments Communications Director Steve Galane says they note and support “this very important development” in the wine industry that will acknowledge and accredit wineries and farms that follow ethical practices. He says this will address the abuse of human rights in the longer term and will recognise that the ethical treatment of workers is both a moral and a legal obligation. WIETA will be working with Wines of South Africa who will promote the new ethical seal, along with Fairtrade and Fair for Life.

S W E I V E R E WIN J.C. Le Roux Brut Invigorating and Refreshing Composed of predominantly Pinot Noir with a small component of Chardonnay, J.C. Le Roux Brut is a non-vintage Cap Classique with superbly integrated flavours of berry fruit, youthfulness and the great complexity of a bottle of fermented sparkling wine that lingers long on the finish. “This addition to our Cap Classique family was crafted especially for people who enjoy the elegance of a Cap Classique with a youthful character. Both refreshing and palate pleasing, our Brut has rich yeasty tones melded with fruity Pinot noir flavours,” says cellar master Elunda Basson. The House of J.C. Le Roux has a wide range of Cap Classiques to suit all palates, from award winning vintage classics to more accessible offdry favourites, all crafted in the time-honoured French method of secondary bottle fermentation to create the lively bubbles and rich mousse synonymous with a fine Méthode Cap Classique. “I love drinking J.C. Le Roux Brut with fish, seafood, pasta and chicken dishes, and don’t forget the sushi,” adds Basson.

South Africa’s Oldest Red Blend Originally conceived as an elegant Cabernet Sauvignon-based, wood-matured blend, Chateau Libertas is still made with the same objectives. However, these days it has more of a ripe berry fruit profile to suit contemporary tastes.

Those who have been involved in making the blend will attest that there has never been a fixed recipe. “The overriding criterion has always been to remain loyal to the original intention of the wine, which is to please with an approachable, well-balanced and layered combination of fruit, wood and the structure to age,” says brand marketing spokesperson Jackie Olivier. The current blend still features Cabernet Sauvignon but also Shiraz, Merlot, Ruby Cabernet and even Petit Verdot. Olivier says, “Everybody loves its open-hearted burst of juicy ripe fruit backed by a touch of wood. Smooth and delicious, it makes a great match with so many foods. Try it with smoked meats, hearty pastas, pizza, grills, roasts, casseroles and stews.” Chateau Libertas is believed to be South Africa’s oldest red blend and celebrates its 80th birthday this year. The wine is sold nationally and retails for around R34 a bottle.

‘Soon to be Extinct a ç ra G D E S LO -C K R CO Graça, South Africa’s first Mediterranean-style white wine that is light, fresh and youthful in style, has blown its top, exchanging its traditional cork closure for a screw-cap The new screw-capped bottles come with a cork key ring displaying the quirky message, “soon to be extinct”. These limited-edition packs are intended to draw attention in a humorous way to the need to protect cork trees but also the advantages of screw-caps. “Research shows that screw-caps generally make for taintfree wines that maintain flavour and freshness,” says brand spokesperson, Vanessa Kok. Both the white and rosé will come closed under screw-caps. The white is a zesty, refreshing blend of Sauvignon Blanc, Colombard and Semillon. The tangy rosé is made from Sauvignon Blanc, Semillion, Colombard and Pinotage. It fits so well into the local lifestyle that in nearly 30 years it has never once changed its appealing positioning. The brand has built up a loyal following of consumers based on its compatibility with virtually any food, especially seafood. Graça and Graça Rosé sell for around R28 a bottle.

WINE

Wine Reviews

2012 Two Oceans Pinot Grigio The newly released 2012 Two Oceans Pinot Grigio is light, aromatic and very food-friendly. “The wine makes a great partner to Asian and Mediterranean foods and its unusually silky texture is very appealing,” says the Two Oceans spokesperson Ebith Jurgens. The 2012 Two Oceans Pinot Grigio is brilliantly clear with flashes of green and has a subtly floral nose with hints of dried peach, apricot and litchi. “Its refreshingly fruity palate just begs for a dish with a bit of a bite,” Jurgens explains. The Two Oceans Pinot Grigio can be paired well with salt and pepper calamari with sweet chilli sauce or with grilled chicken or fish. The 2012 vintage retails nationally for about R30.

Nederburg Baronne Strikes Out on Its Own Nederburg Baronne, one of South Africa’s top-selling red blends, is now a part of the Paarl winery’s popular Winemaster’s Reserve Collection that has been repackaged as a wine in its own right from the 2011 vintage. The Cabernet Sauvignon/Shiraz blend, launched in 1973, is such a fixture of South African wine that for some, the name has come to signify red wine itself. “For many people, Baronne is synonymous with wine, so we thought the time had come to give this ubiquitous satisfyingly smooth red blend a Nederburg pedestal of its own,” says cellar master, Razvan Macici. Its classical, almost universal appeal of succulent red fruit flavours, matched by slight peppery, smoky characters, makes it a very versatile wine that goes extremely well with burgers, ribs, hearty pastas and even Sunday roasts,” Macici adds. Baronne, closed in the traditional way, under cork can be found in most bottle stores, on supermarket shelves and is listed widely on restaurant menus from steakhouses to family bistros in the city, outlying towns and at game lodges. Nederburg Baronne retails for around R45 a 750 ml bottle.

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HEALTH & SAFETY Feature

ealthy H Keeping

Images By: Philip Meec

he consumption of alcohol can have beneficial or harmful effects depending on the age and other characteristics of the person consuming alcohol, amount consumed and specifics of a situation. According to research, the hazards of heavy alcohol consumption are well known and include increased risk of liver cirrhosis, hypertension, and cancers of the upper gastrointestinal tract, injury, violence, and death. The National Health and Medical Research Council recommends that certain individuals who are more susceptible to the harmful effects of 42

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alcohol should not drink at all. And moreover, alcohol should be avoided by those participating in activities that require attention, skill, and/or co-ordination. However, alcohol may have beneficial effects when consumed in moderation. The lowest all-cause mortality occurs at an intake of one to two drinks per day. The lowest coronary heart disease mortality also occurs at an intake of one to two drinks per day. Morbidity and mortality are highest among those drinking large amounts of alcohol. Alcoholic beverages supply calories but few essential nutrients. As a result,

excessive alcohol consumption makes it difficult to ingest sufficient nutrients within an individualâ&#x20AC;&#x2122;s daily calorie allotment and to maintain a healthy weight. However the consumption of one to two alcoholic beverages per day is not associated with macronutrient or micronutrient deficiencies or with overall dietary quality; only heavy drinkers may be at risk of malnutrition if the calories derived from alcohol are substituted for those in nutritious foods. Those who do drink alcoholic beverages should do so in moderation. Moderation is defined as the consumption of up to one drink per day for women and up

with Alcohol Key Recommendations • Those who choose to drink alcoholic beverages should do so sensibly and in moderation—defined as the consumption of up to one drink per day for women and up to two drinks per day for men. • Alcoholic beverages should not be consumed by some individuals, including those who cannot restrict their alcohol intake, women of childbearing age who may become pregnant, pregnant and lactating women, children and adolescents, individuals taking medications that can interact with alcohol, and those with specific medical conditions. • Alcoholic beverages should be avoided by individuals engaging in activities that require attention, skill, or co-ordination, such as driving or operating machinery.

to two drinks per day for men. Twelve fluid ounces of regular beer, five fluid ounces of wine, or one-and-a-half fluid ounces of 80-proof distilled spirits count as one drink for purposes of explaining moderation. This definition of moderation is not intended as an average over several days but rather as the amount consumed on any single day. Excessive alcohol consumption alters judgment and can lead to dependency or addiction. Even less than heavy consumption of alcohol is associated with significant risks. Compared with women who don’t drink, women who consume one drink per day appear to

have a slightly higher risk of breast cancer. Some people, including children and adolescents, women of childbearing age who may become pregnant, pregnant and lactating women, individuals who cannot restrict alcohol intake, individuals taking medications that can interact with alcohol, and individuals with specific medical conditions should not drink at all. Even moderate drinking during pregnancy may have behavioural or developmental consequences for the baby which range from behavioural and psychosocial problems, malformation, and mental retardation in the baby.

Moderate alcohol consumption may have beneficial health effects in some individuals. In middle-aged and older adults, a daily intake of one to two alcoholic beverages per day is associated with the lowest all-cause mortality. More specifically, compared to nondrinkers, adults who consume one to two alcoholic beverages a day appear to have a lower risk of coronary heart disease. However, in contrast, among younger adults alcohol consumption appears to provide little, if any, health benefit, and alcohol use among young adults is associated with a higher risk of traumatic injury and death. www.spotongmag.co.za

PROPERTY

Lifestyle

SELF EMPLOYED? hances of C R U O Y Increase an C HOW YOU

ond B Qualifying for a

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ost banks view self-employed home loan seekers as high risk and as a result would only offer them a 90% and not the full 100% bond, says Olen Sterling, mortgage expert at Property Loans. Sterling says affordability is a big key factor, and as such applicants will have to prove to the bank that they have sufficient disposable income available each month to afford the monthly bond repayment. “A clear credit record is a must; a negative record will not be treated favourably.” She says self-employed home loan seekers must ensure that their business financial records are up to date and that they employ the services of a reputable accountant to assist with drafting their financial records on a yearly basis. “Each month you can draw a salary for yourself into a personal bank account so that the bank can clearly trace your own personal drawings from the business. This will be used as the basis to determine your affordability for the home loan you are applying for,” Sterling advises. Asked about the success rate of selfemployed home loan applicants, Sterling says it depends on each business’ financial standing.

Here are a few requirements for securing a home loan for any self employed applicant: • The business must be operational for a minimum period of three years. • The business account must reflect income deposits – cash payments are unacceptable. • Accounting business financials must be produced for a period of three years, which indicate the financial position of the business such as profitability and cash flow. This comprises of an income statement, balance sheet, statement of assets and liabilities, cash flow statement, and accounting notes to the financials. • Proof of business registration which confirms business ownership • If the latest financials are unavailable, then recent management accounting reports must be submitted for assessment. The management reports usually include an interim income statement and balance sheet signed off by the business accountant and business owner. • Proof of yearly tax returns are rarely called for, however, these can be requested based on each individual’s type of business.

The key factors that the bank

will look at when assessing As a mortgage consultant, she would the financial and conduct an upfront interview prior to the applicant applying for the bond and banking records: ensure that all the minimum criteria • The profitability position of are met before she lodges an official the business, application at the banks. This includes an • Available balances in the bank account upfront credit check to cover the basic at the end of each closing month, credit score requirement. • The ratios between assets and But she says it’s difficult to provide preliabilities for the business. approval for a self employed applicant, Overall, the business needs to reflect a since their income varies on a month to month basis, however the recent annual positive financial position and steady growth over the three year period. turnover and business profit incurred would give them a clear indication of The most recent personal tax return whether the applicant will be considered accompanying the signed employment favourably or not. contract and a six month record of salary payments would be needed for “If the business financials reflect a assessment purposes. positive financial standing, and we can trace the turnover in the bank account While each application is assessed records, there is a good chance of according to its own merit of course, it’s the application being granted. If the also easier to secure finance through declared income doesn’t match up with a bank where the business banking the business financial records and bank portfolio is held. statements, there will be very little we could go on to convince the Sterling suggests that the applicant bank otherwise.” consults with a mortgage expert to weigh up the pros and cons of their financial decision before committing to the property purchase.

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EVENTS

Services

EVENTS

Kasi o to e G arties P p A Series of Pop-U An impromptu party recently kept Soweto partygoers on their toes when Hansa Pilsener’s music acts “Hansa Legends in the Making” gave a stunning performance at Moroka Cricket Oval. The Hansa Special Inside Truck has already made its appearance in East London, Gugulethu, Polokwane and Tembisa, bringing some of South Africa’s hottest acts such as Zakes Bantwini, Liquideep, DJ Cleo and Black Coffee to perform for fans. “With the Hansa Special Inside Truck we have tapped into the impromptu party trend which sees those in the know gathering in non-traditional areas to attend temporary parties,” says Hansa General Manager Mosidi Seretlo. “Popup parties have been happening in cities such as London and New York for years, now Hansa is bringing the concept to spotong-repro.pdf AM eKasi (township).8/13/12 Just like 11:02:41 Hansa has something ‘special inside’ each bottle

with the kiss of the Saaz hop, each truck also has a unique surprise on board.”

Lucky East London resident Yolisa Nongauza and Tembisa resident Kamogelo Mazibuko each won Hansa Special Inside prizes of R100 000, which was up for grabs in each city with loads of other prizes on offer. “The party was great – even more so after I won,” says Nongauza, who plans to use the money to study tourism. Student Tshepo Mmutlana won R50 000 at the last Hansa Special Inside Truck party held in Soweto which he also plans to use towards his studies. The Katlehong man is currently studying Hospitality at the Central Johannesburg College and says he plans to pay for his studies with his prize money. “I will use this money to finance my studies and the rest I will visit my homeland in Hammanskraal to slaughter a cow and thank my ancestors for bringing me such luck,” Mmutlana said.

Hostess at the Hansa Party in Soweto, Standing Dawn Bekwa, Dineo Satekge and Refilwe Sebothoma, sitting Sibongile Mahlangu, Masego Mothibenyane and Tshepiso Gawu

Events Calendar

Celebrating French and South African Cultures The lively Seventh Street in Melville was brought to a total standstill as street performances and local restaurants got the opportunity to spill out onto the street with their special acts and menus for the day as Joburgers celebrated this season’s Fête de la Musique.

Reneilwe Letsolonyane , Siphiwe Tshabalala, Caryl Kolk and Mougan Gound

The Fête de la Musique was organised as part of the French and South African Seasons 2012 and 2013 in collaboration with the Melville Residents Association, Restaurants and bar owners, Alliance Française and the French Institute of South Africa.

Tshabalala Celebrates the Finest Moment of His Career

Launched in 1982, by the French Ministry for Culture, the Fête de la Musique is held in more than hundred countries in Europe and around the world. It normally takes place on or around the 21st of June, the day of the summer solstice in the Northern hemisphere.

Acclaimed Bafana Bafana and Kaizer Chiefs midfielder, Siphiwe Tshabalala was the guest of honour at the highly glamorous event hosted by Fine Brandy By Design at the upmarket Sedibeng Pub and Restaurant, in Soweto.

The event offered a unique fare of artistic and cultural experiences featuring a giant puppet parade, brass band, live music, theatre performances, open-mic session, kid’s entertainment, street performances and a flea market.

Tshabalala has been honoured as one of South Africa’s youth ambassadors for his unending dedication and commitment to his career and community. “I am honoured to be recognised as a modern master by Fine Brandy By Design. They gave me a wonderful opportunity to celebrate one of the proudest moments in my career; scoring the opening goal of the 2010 World Cup”, says Tshabalala. While the event was a commemorative celebration for Tshabalala’s 2010 Fifa World Cup opening goal, it was also about giving Siphiwe the opportunity to network with various business associates in order to further his business goals, says Shelley Ellse, Marketing Manager at Distell. “I have tried, through my football and business to inspire, uplift and create employment for the youth. Fine Brandy By Design have given me another opportunity to network with influential business people giving me the edge to take my business ambitions further”, adds Tshabalala.

The Eighth Annual Soweto Wine Festival The eighth annual Soweto Wine festival combines the best African vibe with the finest South African wines. Visitors can delight in tasting 950 wine styles and cultivars; interact with lifestyle brands in wine lounges and enjoy a meal in the revamped food court showcasing Soweto’s restaurants. The festival will be held at the University of Johannesburg, Soweto Campus on Thursday, 06 September 2012, to Saturday, 08 September 2012, from 18h00 to 22h00 on weekdays and from 17h00 to 21h00 on the Saturday.

The Soweto Mushroom Festival This festival is set to celebrate the best of mushrooms throughout Soweto and allow shoppers and mushroom lovers to indulge in the wonderful mushroom inspired dishes. The festival is a South African Mushroom Farmers’ Association initiative and run in association with the Soweto Tourism Association. Restaurants, pubs, Bed and Breakfasts will participate in the festival and live mushroom cooking demonstrations and tastings will be on show. The festival will be held at Soweto’s prestigious Maponya Mall on Saturday, 29 October 2012, from 11h00 to 16h00.

African Shebeen Festival African Shebeen Festival of Beer is a celebration of Africa’s rich brewing history and is hosted by experts of the brewing craft. Featuring micro and commercial brands on site, the festival is regarded as Africa’s premier celebration of the golden beverage. Patrons will enjoy beer brands from all over the world, amazing food, competitions, live performances and dancing. The festival will be held at Innesfree Park, Sandton, on Friday, 05 October 2012, until Sunday, 07 October 2012, from 16h00 to 22h00.

Soweto Festival Expo This year’s Soweto Festival Expo promises to offer an uncompromising experience of culture, business and entertainment to all. The Festival Expo has awarded many small businesses the opportunities to exhibit their goods alongside industry leaders, as well as learn valuable lessons through skills transfer workshops and interaction with larger organisations. The Festival Expo will comprise a variety of events, workshops and exhibitions covering everything from cuisine, beauty and business to arts and crafts. The Festival Expo will also offer performances including music, stand-up comedy, poetry readings and storytelling. The Soweto Festival Expo provides the 16 – 25 age groups with business information and sound career advice. Two giant puppets parading at the Melville Fête de la Musique Festival

The expo will be held at Nasrec Expo Centre, Soweto, from Friday, 21 September 2012 to Monday, 24 September 2012.

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LISTINGS

Services

LISTINGS Waterkloof Wines Tel: 021 858 1292

Industry Association for Responsible Alcohol Use (ARA)

KWV

Tel: 011 326 2906

Tel: 021 807 3911

University of Johannesburg’s Centre for Small Business Development

Azuka Payroll and Accounting Services

Tel: 011 559 5649

Distell Tel: 021 461 5383

Gauteng Liquor Licensing Board Tel: 011 355 8699

Bara Rank Wholesalers Tel: 011 938 6835

Restaurant Vilakazi Tel: 011 936 7432

Nambitha Restaurant Tel: 011 936 9128

Sakhumzi Restaurant Tel: 011 536 1379

Gauteng Liquor Forum

Mmafana Accounting Tax and Payroll Services

Tel: 011 863 3239

Tel: 011 865 5074

Bridge

Old Mutual

Tel: 011 482 5363

Tel: 011 217 1000

Collect-a-Can

Property Loans

Tel: 011 466 2939

Lefatshe Larona Recycle Tel: 083 413 8160

Retail Systems Tel: 011 824 0844

Tel: 083 304 2536

Tel: 087 625 0590

Wine of South Africa Tel: 021 883 3860

Wine and Agricultural Industry Ethical Trading Association Tel: 021 880 0580

Ideal Software

United National Breweries (SA)

Tel: 082 806 6743

Tel: 011 315 8147

South African Breweries

Vice Unlimited Head Office

Tel: 011 881 8111

Tel: 031 765 6521

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And then... We put it in a box

Enjoy Responsibly. Not for Sale to Persons Under the Age of 18.