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ANNUAL REPORT April 2012 – April 2013
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Introduction Again in presenting this report on the progress of the Durban Chamber of Commerce and Industry during the past year, we have been guided by the principles of integrated reporting. The report will highlight successes, of which there have been a number, challenges and weaknesses, and how these will be either sustained or addressed in the future, while also drawing attention to the activities and events of which the Chamber may be justifiably proud.
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CONTENTS Introduction
3
OVERVIEW
5
MEMBERSHIP
8
PUBLIC EXPECTATION AND OUTREACH
10
FINANCIAL SUSTAINABILITY
11
GOVERNANCE
13
POLICY AND ADVOCACY
14
BUSINESS SERVICES
17
COMMUNICATION
19
ENTERPRISE DEVELOPMENT
20
STAFFING
22
EVENTS
24
ACKNOWLEDGEMENTS
25
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OVERVIEW As the year began, a number of strategic priorities were to be addressed. These were 1. financial viability; 2. increase in membership, especially as far as larger companies are concerned; 3. more rigorous risk management, particularly in the sphere of governance; 4. the development and adherence to a strategic plan for communication, including attention to an antiquated IT system; 5. enhanced advocacy programmes; 6. new revenue streams; 7. the identification of new markets. The progress made in these areas is dealt with during the course of this report. The most significant achievement in the year under review was to avoid yet another deficit (strategic priority #1).
The previous three annual reports have had to
reveal operational deficits, the 2011 shortfall being R1,449 million. This report is able to reflect a surplus of R1,919 million, an amount which includes the revaluation of investments and investment income and if confined to operational transactions is limited to R445,554. While
The most significant achievement in the year under review was to avoid yet another deficit. This report is able to reflect a surplus of R1,919 million,
this enabled the budget for 2013 to include a meaningful, but not as generous as one would have liked, increase for staff, it is a circumstance that should not invite complacency.
The costs of employment were less than budgeted because of the
difficulty experienced in filling management positions.
But events and functions yielded
satisfactory returns on which more may be built, while financial prudence was shown in several other operational areas.
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Member and public confidence in the Chamber continued to rise during 2012 as a result of regular and effective communication, an expanding profile in the media and in relation to enhanced relationships with important stakeholders.
This was not always backed up by
internal efficiencies and productivity, and, particularly since the appointment of a Chief Operations and Financial Officer at the beginning of September, it is the intention of the CEO to consciously raise the bar in this sphere during 2013.
At current levels of productivity, the
Chamber employs too many people, but this would not be the case were we to do everything that we could to elevate the DCCI to being world class in the exercise of its various typical chamber of commerce functions, as well as others which are expected of a
Member and public confidence in the Chamber continued to
Chamber in South Africa.
rise during 2012 as a result of Two important challenges have evaded resolution during
regular and effective
the year, but the discussions held as these have been
communication, an expanding
faced have revealed great complexities.
One is the
profile in the media and in
constitutional status of the DCCI. The chartered status
relation to enhanced
afforded the Chamber during the nineteenth century is
relationships with important
considered inappropriate in the contemporary business
stakeholders
environment.
Increasingly, institutions are being
expected to have registered status, particularly if they wish to qualify for grant or other funding. Moreover, the Chamber should set an example in terms of its governance practices, and it cannot do so if it is subject to a Charter and Rules which fail to recognise accountability on the part of those who provide decision-making leadership. A second matter of grave concern relates to the premises which the Chamber has occupied since they were custom-built for its purposes in 1999.
The terms of the lease, which expires
at the end of January 2014, include an annual escalation of 11%, a figure which has become out of touch with the current reality of the property market in this part of the city. spending too much on rent.
We are
Notwithstanding the cost, the Chamberâ€&#x;s comfortable tenancy of
Chamber House has been compromised by the entry to the building as co-tenant of a political party. In the course of the year under review, the building has been effectively re-branded,
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and, indeed, re-named.
These concerns aside, however, parking has become an issue for
Chamber visitors and it is felt that the inconvenience of this has affected attendances at meetings held at the Chamber.
The Council and Board have explored several options and
continue to wrestle with a choice of future home which will be in the best interests of the Chamber.
Challenges Ahead Following the Annual General Meeting, and the installation of a new President, Akash Singh, the Chamber will continue to address its most serious challenges. Apart from those cited above, they include
Inadequate enrolment of new member companies, notably those of a larger size;
The retention of members who resign, often on receipt of the annual subscription invoice, citing “lack of benefit”;
Shortage of expert capacity within the staff;
Greater accountability on the part of staff for their performance;
Significant sources of revenue apart from subscriptions;
More effective marketing of services which constitute a much longer list than is often recognised;
More dynamic Standing and Area Committee meetings which are better attended;
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MEMBERSHIP During 2012, under the management of Sibusiso Msawoni, 503 new members were enrolled (strategic priority #2).
This
increased the net membership by 256 from January, a very encouraging increase.
The gilt was tarnished by the fact that
between November 2012 and March 2013, 186 members resigned, mostly in response to requests for subscription payment.
However, the year reflected a net gain in
membership which is a change from the former trend and a reasonable achievement given the fact that times have been hard, particularly for smaller companies.
In assessing the
performance of the Area Liaison Officers, it needs to be remembered that 231 members were enrolled within the terms of an agreement with First National Bank which sponsored, to the tune of R100 000, the membership of new business account holders for a year.
Some of these free memberships
expired during 2012, and the companies declined to extend their membership, preferring not to pay the subscription.
This reflects negatively on the impact that the Chamber made to the
businesses, but it has to be acknowledged that participation and involvement in the activities of the Chamber are required if businesses are to derive optimal value. Many do because they take advantage of the various opportunities that become available to members. During 2012 it was decided by the Board that the potential of medical professionals as members should be exploited (strategic priority #7).
Doctors, after all, are business people,
and from all accounts, not nearly as good at business as at medicine.
The feeling was that
the Chamber would be able to offer services which would be of value in the business aspects of their practices.
As it transpired, recruitment was disappointing, the appetite for Chamber
membership being clearly less than had been anticipated.
However, a meeting of those who
had joined was held early in 2013 and a chairperson elected to head a new Standing Committee which would directly serve the medical members.
Despite the difficulties
associated with the timing of events (doctors are generally not available when other chamber
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members are able to attend meetings), it is hoped that by delivering constructive services to health practitioners, more will seek membership.
The key to member retention is the value of
the benefit, but it is also related to person-to-person contact with the right people within a member organisation.
Chambers, the DCCI included, wrestle with this. The right person for
one communication or contact is not the right person for another.
Steps will be taken to
improve the information that the Chamber holds with regard to people within the member companies with a view to addressing this problem.
This will necessitate much more personal
contact on the part of Area Liaison Officers with member companies.
The targets set for
2012 – each company to be contacted at least three times in the year – were not achieved as was clear from the number of inaccuracies in the database which emerged during the course of the year.
It is increasingly necessary to store and use the right information, which must
include individuals‟ cell phone numbers in order to activate successful the facility that the Chamber has to communicate via cell phone. This will be very useful in the case of meetings for which people need to be reminded. From the beginning of 2013, a concerted effort has been made to improve the Chamber‟s use of social media and a consultant was engaged to do this on a part-time basis. This is a way of exploiting the fact that although Chamber members are companies, they comprise individual people, and the more of them that become interested in the Chamber‟s activities and follow it on social media platforms, the better the chances are of companies deciding to join and support.
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PUBLIC EXPECTATION AND OUTREACH In this time, Chambers cannot be content with private status and the servicing of members. There are increasing public expectations, sometimes related to erroneous perceptions that chambers are government-funded.
This perception also reflects the wide belief that
chambers are the institutions which not only represent Business, but also promote and nurture it.
However, for the sake of its credibility and because of the importance in relation to
economic growth, the Chamber has no alternative but to share alignment with government in terms of the burning issues of poverty, unemployment, especially among youth, black economic empowerment, gender equity and entrepreneurship promotion.
The Board has
been very conscious of the importance of these matters and done its best to ensure that they influence the ways in which the Chamber operates and engages with its stakeholders. During the year, the DCCI has embarked on a township business development project in Umbumbulu.
During November 2012, the DCCI staged a „Business Day‟ in the township.
Local people attended to hear presentations from a number of private and public sector organisations with service offerings for those who wanted to know more about business. The project enjoys the co-operation of the eThekwini Municipality which has agreed to fund the initiative as part of a comprehensive grant package to the Chamber which will undertake, on the municipality‟s behalf, a number of programmes which, it is felt, are best driven by the private sector.
The grant of R2,25 million, recently approved, includes money for the
township business development, some aspects of investment promotion, enterprise development and also women empowerment.
In 2012 a highly successful Women
Empowerment conference, with the support of the eThekwini Municipality, was staged by the Chamber.
This included a series of “Women of Excellence” awards and announcements of
the establishment of a Women in Business directory and a Women Empowerment fund. Plans for an expanded programme, including a conference to make it an annual and iconic event, are in place for 2013. On Women‟s Day 2012, the Chamber joined a community event in Inanda, the co-ordination of which was done very largely by Chamber staff.
The programme included presentations on
business related matters and the provision of basic health services offered by the Municipality.
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FINANCIAL SUSTAINABILITY The highlight of the year has been the turn-around of the Chamber‟s financial position (strategic priority #1). In 2012 the auditors raised the question of “going concern”, and were not required to do so this year. However, sustainability is not as assured as it should be into the future.
Reliance on subscriptions to the tune of
60% of income is too high and it must be the objective of
management
to
boost
revenue
from
subscription sources to a higher proportion.
non-
Income from certificates of origin increased by
The
36% in 2012
change in the subscription collection system so that all members have a common payment date has now been firmly established and the transitional problems which were encountered are things of the past.
It is clear that the change was a positive development, for it provides cash in quantity
early in the year and alleviates much of the administrative work that had to be done in relation to anniversaries occurring each month of the year. In 2012, it took all of twelve months to collect R5,957 million of subscriptions, this being 92% of the budgeted income from this source.
A great deal of time was spent on telephones urging member companies to pay, and
this revealed that the invoice and statement system that we are using results in duplicates having to be sent to those who claim not to have received them.
In 2013, concerted efforts
will be made to get as much subscription income as possible by the end of April at the latest.
2012, Income from certificates of origin increased by 36% in R5,957 million of subscriptions
2012. This was attributable to the increase in price of 32% imposed at the beginning of the year in order to bring the price in line with that charged by other
organisations.
This remains a very important service of the Chamber and the systems
employed allow certificates to be applied for and received within a very short time.
Staff
members involved in the procedures are adequately trained and this will be an ongoing commitment to ensure that the integrity of certificates issued by the DCCI remains untainted.
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Under the direction of the Manager, Jane Pillay, the 2012 events programme yielded very pleasing financial returns.
By the end of the year, a sponsorship amount of R150 000
committed by the eThekwini municipality was still outstanding and this was essentially the difference between the budget figure for the year, which was quite substantially higher than the previous year, and the income realised.
It is clear that events and functions constitute a
major revenue source, as well as providing excellent networking, information-sharing and business engagement opportunities.
The anticipated income has been increased again for
2013 and it is believed that this will be attained by a programme that will be further enhanced by more professional delivery and high calibre, relevant presentations. Despite prudent management of expenses, sometimes to the detriment of the Chamberâ€&#x;s image and progress, perhaps, the ravages of a high monthly rental cannot be escaped. Rent constitutes 17% of expenses, a figure thought to be too high, especially in relation to the current state of the building which discredits the Chamber.
It lacks the professional gravitas
and general cleanliness that the Chamberâ€&#x;s premises should exude. It is considered fortunate that the lease expires at the end of January 2014.
This will provide the opportunity to move
into alternative premises, which, one hopes, will ease the parking difficulties, provide a better standard of office and, above all, save money. In 2012, the Chamber adopted a more realistic approach to its financial practices.
An
overdraft facility was approved to avoid the necessity for shares to be sold whenever cash flow ran short and it was accepted that businesses customarily pay accounts at a particular time in a month and, therefore, do not pay in advance ahead of functions and events for which their staff book.
This has been a requirement but one honoured more in the breach than the
observance. At the same time, the Chamber was always a prompt payer once invoices were presented.
Thirty day terms have now been arranged with several creditors to ensure that
cash flow is better managed. For larger events, invoices are presented early and companies pressurised into paying ahead of the event.
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GOVERNANCE Since the beginning of 2011, emphasis has been laid on better practices of governance (strategic priority #3).
An Audit, Risk and Compliance Committee with an independent
chairperson is now in place and monitors the progress of the Chamber in respect of the various risks that it faces. Members of the Council are required to declare their interests both at the beginning of the year and at the start of each meeting, while observance of the Rules is done strictly and consistently.
Attention has been given to procurement and a policy has
been adopted by the Council and implemented.
A review of other policies, especially those
relating to staff, is underway with a view to updating them to cater for current employment circumstances. The circle of good governance is incomplete, however, without a statutory status which accords with modern business practice.
It is necessary, it is felt, for the Chamber to be
governed by a Board of Directors in terms of the Companies Act.
While the Council has
agreed with the necessity for change, as recommended by the Audit, Risk and Compliance Committee, the President and the Chief Executive, the adoption of an acceptable Memorandum of Incorporation has proved impossible so far.
The point of contention would
appear to be the transfer of ultimate decision-making power from the Council, as governed by the current Rules, to a Board of Directors.
Legal guidance has been sought on this matter.
The opinion expressed by the attorney is that the Act does not entertain any erosion of directorsâ€&#x; powers in favour of another structure.
Consultation on this matter is continuing and
will do so until a solution acceptable to the Council, and Chamber members, is found.
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POLICY AND ADVOCACY Notwithstanding the fact that the Chamber has lacked a manager of policy and advocacy since Amar Sooklal resigned in April 2012, the advocacy function has been considerable enhanced (strategic priority #5).
At the time it was felt that there were other priorities that required at
least some of the allocation budgeted for this position. It became clear, particularly in the new year, that a person to manage this work is essential and efforts are being made to adjust the 2013 budget to accommodate a new appointment.
The policy and advocacy work has been
effected successfully, largely as a result of the Chamber‟s good fortune in having in its employ a
Advocacy on the part of the Chamber is central in its raison d’être.
graduate intern, Shivani Singh, who has a Masters degree in Economics . She has provided committees with documentation around which discussion has taken place, done valuable research into diverse
issues and drafted submissions to government.
When the Board decided that the Chamber
should compile a business vision for the economic development of the city, much of the preparatory work fell to her.
She collated input from committees (all were asked to include
this in their agendas and submit recommendations) and individuals and did the primary draft of the final document.
This document is in the final stages of completion.
It represents a
unique initiative on the part of Organised Business. Advocacy on the part of the Chamber is central in its raison d‟être.
Unfortunately, it is not
strong as a saleable service and members, generally, fail to appreciate what chambers do to advance the case for Business.
Within the eThekwini Municipality, for example, the strong
stance taken by the Chamber was instrumental in the decision of the City to postpone the introduction of both a development levy and a local business tax.
Indeed, in the case of the
latter, the advocacy channel from DCCI to SACCI resulted in the Minister of Finance resisting the introduction of a local business tax which had been proposed by several metropolitans, including eThekwini. Formal submissions that were made include those in connection with The Tax Laws Amendment Bill, Infrastructure Development Bill, the B-BBEE Amendment Bill and the
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proposed amendments to the Code of Good Practice, the Tourism Bill, the Draft National Norms and Standards for the Remediation of Contaminated Land and Soil Quality, a Municipal Demarcation Board proposal to excise the area around KSIA from the eThekwini Municipality and transfer it to KwaDukuza, the proposed Special Economic Zone Bill and the Preservation and Development of Agricultural Land. The Chamber also developed a policy on the tolling of roads.
In numerous meetings, Chamber representatives made input to the Provincial Growth
and Development Plan, tourism strategies, including the one adopted by KZN Tourism, the eThekwini Budget, the Integrated Freight and Logistics Strategic Framework and Action Plan for eThekwini, the Municipality‟s Back of Port plan and the proposed Dig-out Port, among others. An innovation during 2012 was the introduction of a partnership with Tsogo Sun and the Sunday Tribune‟s Business Supplement (This supplement also featured weekly a selected entrepreneur within the context of an agreement between the Chamber, the newspaper and Investec.) which involved periodic round table breakfast meetings which were called to discuss particular pertinent issues. These were attended by individuals invited because of their closeness to the topic under discussion.
An innovation during 2012 was the introduction of a partnership with Tsogo Sun and the Sunday Tribune’s Business Supplement
One
dealt with the Demarcation Board‟s proposal, another with the Durban Beachfront and a third with the Food Supply Chain.
Facilitated by Professor Jeff McCarthy, these meetings were
covered in feature articles in the Tribune‟s Business Supplement. The Chamber made a successful proposal to SACCI that it should host and manage a SACCI Port and Logistics Committee which could deal with matters of concern relating to the ports and their access. These meetings have got underway and shown clearly the need for national intervention which SACCI is able to offer. Policy and advocacy are driven by the Chamber‟s Standing and, to a lesser extent, Area Committees.
The introduction during 2011, and some intensification of this last year, of
focused topics as central features of committee agendas and the advertisement of meetings to all members, has had mixed success.
Attendances at some meetings have been
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embarrassingly small, but others have drawn good attendances, often by virtue of the relevance and dynamics of the discussion.
One meeting of the North Area committee during
2012 drew over a hundred people to hear a DTI presentation on its incentive offerings.
The
Durban Port Committee is always well-attended and proves consistently valuable to those who sit round the table because it is an opportunity, sometimes though not always unfortunately, for them to engage with various agencies which manage aspects of the port. Committee is another which draws a consistently large number of members.
The Tourism Perceptions that
this committee is only interested in the beachfront are not entirely valid, although the committee itself is conscious of the fact that, owing to the constituencies of most of those who attend, the beachfront often dominates discussion, but its brief covers the whole area of the city.
The Central Area committee has highlighted the problems associated with urban decay
in the traditional CBD and the inadequacy of current policies relating to informal trading. Indeed, the Chamber has requested SACCI to take this up as a matter of urgency with DTI because it is clear that the informal economy has been taken over to a large extent by immigrants who are using the freedoms inherent in informal trading to evade compliance and squeeze indigenous people out. In pursuance of the policy to build committee meetings around a particular topic of relevance and to make the agendas more attractive, the Chamber arranged numerous presentations during the year.
These included the Durban Green Corridor (Tourism Committee); Quality of
municipal electricity supply and SIP2 (the Durban-Free State-Gauteng logistic and industrial corridor) (Infrastructure Committee); Child Trafficking (Safety and Justice); KZN Growth Fund, Economic Developments in the city and the draft KZN Maritime Strategy (Economic Affairs); Integrated Rapid Public Transport Network (Infrastructure and Central Area); Small Enterprise Finding Agency and eThekwini Maritime Cluster (SMME); Contaminated land, Medical waste and Landfill management (Environment); Dubeâ€&#x;s iConnect Cloud platform and DTI Grants and Incentives (North Area). The appointment of a suitably capable manager will address some of the current challenges. Meetings need to be enlivened with interesting focus topics introduced, they need to be better advertised and the overlapping of subject matter needs to be addressed by joint meetings
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being held when appropriate. Infrastructure committees.
This is particularly the case with the Economic Affairs and In addition, greater efforts need to be made to encourage
participation by representatives, even decision-makers, of larger companies which in earlier days dominated these committees. Advocacy is not confined to the formal submission of commentaries on proposed legislation. It includes the countless individual concerns that are taken up by Chamber on behalf of its members.
These have ranged, inter alia, from tax matters, to problems with the
Compensation Commission (particularly relating to Letter of Good Standing), to property valuations, to congestion at the port, to the problem of large vehicles on Fields Hill, to the continued absence of a working weighbridge on Bayhead Road, to delays in authorisation for development and to unregistered taxis.
BUSINESS SERVICES This department was compromised after the resignation at the end of June 2012 of Malusi Mpanza when it became impossible, for a period of six months, to find a suitable replacement.
In particular, a person with management
experience and knowledge of int required.
ernational trading was
Finally, Mrs Dumile Cele was identified and
appointed during January this year.
She has an impressive
CV with experience considered entirely appropriate for the position. She will also manage the SMME Desk. It is within this department that certificates of origin are provided, and the initial acceptance of documentation for attestation was done by Leonard Shange for much of his thirty-three years of service at the Chamber.
He retired at the end of October.
certificates of origin is exceedingly important.
The Chamberâ€&#x;s work with
Not only does it earn significant revenue
(R3,013 million in 2012), but it provides an accessible and prompt service to exporters.
For
some years, the right of chambers to attest certificates, in common with chambers of commerce throughout the world, has been open to contestation and it would be unwise to take
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this function, and the revenue that comes with it, for granted.
The „controlâ€&#x; of certificates of
origin is now vested in the ICCSA rather than SACCI (where it was perceived to favour SACCIaffiliated chambers alone), but heels have been dragged in respect of proper accreditation and the introduction of electronic submission mechanisms which are common in several other countries.
The DCCI is acutely conscious of the need for constant vigilance over certificates
issued and the importance of good training to prepare people to do the attestation correctly. The Business Services Department deals with all trade and business delegations.
In recent
times, there has been a succession of incoming missions, most of which have relied on the Chamber to provide networking opportunities with its members.
This has inevitably involved
hosting at the DCCIâ€&#x;s expense and it is felt that the outcomes in terms of benefits for our members have not been positive.
In light of several requests for the Chamber to advertise
visiting missions, arrange person-to-person networking and host meetings, it has been decided that a fee will be charged when extensive DCCI resources are required to make the requested arrangements.
Chambers are often exploited by companies wishing to take advantage of
their membership base, sometimes when they are earning consultancy fees for their services. It is frustrating that the membership of the DCCI does not seem to have an appetite for joining out-going delegations.
Attempts to identify countries to which delegations could be arranged
have yielded meaningless responses, while opportunities that have been offered have not been taken up.
Larger companies are self-sufficient in this regard, while at the other end of
the spectrum, there are those that are not ready for international trading.
But, over time the
DCCI has lost a considerable amount of momentum in this regard; it was once a notably successful organiser of outgoing delegations.
It is a meaningful objective to recapture this.
There is money to be made and credibility to be earned, but it will necessary to develop the expertise first and then market it effectively. Among its various services to members, which now include BEE verification and mediation, the provision of relevant business information is considered to a competitive edge which the Chamber enjoys.
While the transmission of information is done through seminars and
publications, such as a regular Trade Bulletin, for example, a great deal of it is passed on in response to individual queries.
At least one member of the Business Services Department
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spends much of her time engaging with members who require answers to their many and varied questions.
Some responses require lengthy research and at present this is regarded
as a benefit to members. In time, the Chamber must learn how to evaluate information so that a charge may be levied when valuable information is provided, especially if it is provided to a non-member.
COMMUNICATION In a year during which the Chamber was short of three managers simultaneously, Communication and Marketing was one which was rudderless for several months.
A great
deal had to be done by the person, Bradley Waltman, who was appointed and took office in August.
He has brought to the position a lot of experience, especially in the use of
technology, and his knowledge has proved very valuable. The Daily Digest has continued as the means of daily communication with members and attempts have been made to sustain a level of usefulness and vibrancy. supported by direct emails to member companies.
It has been
Communication with members has posed
an increasing number of challenges, however (strategic priority #4).
Not only does the
Chamber have a very full programme of its own events, but there are constant calls from members, NGOs and government agencies to advertise functions and events on their behalf. The general rule of thumb is the extent of the benefit to our members of knowing that a particular event is being staged.
As far as government is concerned, it is difficult to deny
departments access to our members by means of our communication channels. Consequently, effective marketing is compromised by the volume of advertising required, and satisfactory solutions to this have not been found yet.
Repetitious advertising loses impact,
but there is always a tendency to believe that extra advertising is required when the response is indifferent. What is more of a concern, however, is the twofold problem of people unsubscribing on the grounds that the Chamber sends them too many emails and the intervention of spam filters which are inclined to block emails when a number emanate from a single email address.
The
manager is working on a rationalisation of the list of recipients with a view to trying to avoid
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sending messages to people who perceive them to be irrelevant.
Thus, the group that
receives information about trade will constitute people who are interested in this, and they won‟t necessarily receive other information.
At the heart of the problem is the fact that many
recorded recipients, contacts whose names have been provided by member companies, are not the most appropriate people to receive Chamber information.
This problem may be
addressed by a more accessible and user-friendly CRM mechanism and the diversification of communication media, such as contact via cell phone and greater reliance on social media. An acceptable website would also assist in communication, particularly if it invites access and entry and is modern in concept. Such a platform has been identified and a new website is in the process of being developed.
The platform used gives the Chamber considerable scope
to manage the website and to ensure that it is consistently up to date and interesting.
It also
offers networking and will facilitate interaction among members and between members and the Chamber.
ENTERPRISE DEVELOPMENT After seven years of support for the Chamber‟s SMME Desk, the formal arrangement with Absa ended at the end of June 2012 when Gugulethemba Ngcobo‟s secondment to the Chamber to manage this facility came to an end.
Thanks to Absa‟s generosity, however,
Gugu was made available to the Chamber two days each week , an arrangement which has persisted into 2013 while discussions have taken place regarding the future.
Absa has proposed migrating its entire
Enterprise Development Centre staff into the Chamber, a proposal which has found great favour. However, the
The tendency is for small businesses to expect that opportunities are going to be given to them.
current premises are not suitable for this to be effected now and the move will take place when the Chamber has moved into alternative premises where adequate space will be provided.
In
the meantime, with some assistance from the former Desk manager, the Chamber is developing programmes which will meet the needs of the SMMEs within, and outside, the membership.
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Until the beginning of this year, activities of the Desk have been dominated by the R2 million funding for enterprise development by BATSA and, to a lesser extent, the SAPLATO mentorship programme which is undertaken by the Chamber in partnership with SEDA and the VOKA Chamber of Commerce in Flanders.
These programmes have focused on fledgling
rather than established businesses and the result is that some of the needs of the latter have not been successfully met.
The segmentation of the SMME sector within the Chamber needs
to be done in such a way that the services offered are spread and tailored to particular needs. The tendency is for small businesses to expect that opportunities are going to be given to them. Within the SMME committee, for example, there is constant cry for more business to be commissioned by large companies.
A number of
electronic linkage programmes have attempted, with varying degrees of success, to provide a platform for bigger businesses to engage the services of small enterprises.
Indeed, the Chamber is involved in a
The contribution of BATSA over several years is acknowledged
with gratitude
project, initiated by the World Bank and taken on by a company called Market Square, which will be a Durban Chamber-based linkage programme. Over the past months, this has been advertised to members, large and small, with a view to encouraging them to register.
In addition, a somewhat different approach is to be adopted.
SMMEs within the Chamber will be invited to provide all their pertinent details which will then be made available to large procurers with an invitation to use the services of these smaller enterprises. At the same time, the requirements of these procurers will be made available to the smaller companies. In this way, the Chamber will be interventionist but from the point of view of smaller companies seeking business, with the help of the Chamber, rather than waiting for it to come to them. The contribution of BATSA over several years is acknowledged with gratitude.
There was a
good deal of disappointment when the decision was made not to renew the funding in light of strategic changes within BATSAâ€&#x;s CSI department.
It enabled the Chamber to offer a
plethora of training courses at no cost to attenders, but, as valuable as this was, it also had the effect of compromising the success of other training offered by the Chamber at a charge.
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Free training to fledgling businesses will continue by means of using stakeholders which are willing to offer it without charge, but the Chamber will press for other training at a higher level to business people who should be paying for the value they receive. This is in line with the segmentation referred to earlier. The Chamber is anxious to be afforded the status of Enterprise Development Recipient which will enable it to accept money which can then be invested in enterprise development programmes, enabling the funders to earn enterprise development points on the BBBEE scorecard.
This will be regarded as a priority before the end of 2013.
Related to this
objective is the hope that the Chamber will qualify to receive substantial funding from the DTI in terms of its Incubator Incentive Fund.
To this end, engagement with Transnet, and
Transnet Port Terminals (TPT) in particular, has led to mutual agreements that the establishment of an incubator for enterprise development will be a joint venture between the Chamber and TPT. This incubator will focus on the maritime sector and TPT‟s supply chain. It is envisaged that it will nurture micro and small businesses at various stages of development.
STAFFING The most notable staffing change which occurred during 2012 was the retirement of Trevor Douglas, the Chamber‟s Finance and Administration Manager for 16 years, at the end of August.
In fact, he should have left several months before that, but agreed to stay until a
successor could be found.
His contribution to the progress of the DCCI over the years can
neither be underestimated nor accurately evaluated. He was a stalwart protector of propriety and responsible financial management whose loyalty to the organisation is legendary.
A
tremendous loss of institutional memory was feared, but, as it turned out, did not occur as expected.
The opportunity was taken to revise the role of the person responsible for the
Chamber‟s finances and, in particular, to broaden it to include other operational aspects which required attention.
The new post was advertised as Chief Operations and Financial Officer
and it was filled, following several other unsuccessful interviews, by Praneel Nundkumar.
As
a CA, and notwithstanding his young age, he came with an excellent record of performance both in the profession and then, later, as an acting financial director of a large company. The
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challenge of the Chamber appealed to him and he took office on 1 September.
The particular
characteristics of the Chamberâ€&#x;s finances were assimilated very quickly and it was not long before the new manager had a firm handle on the requirements of the job. Mention of the appointments of Bradley Waltman and Dumile Cele into management positions has already been made. They joined Sibusiso Msawoni, Membership Manager, and Jane Pillay, Events and Corporate Liaison Manager as the executive team. resigned from the SMME Desk to take up a better position elsewhere. changes in staff during 2012, going into 2013.
Thabsile Ntuli
There were no other
The beginning of the new year, however, did
see the arrival of four graduate interns sponsored by the Services SETA.
These young
people, all very impressive, have been deployed in the Events, Finance, SMME and Communications/Marketing departments, respectively. The Chamber now qualifies as a designated employer and, accordingly, will be submitting employment equity reports.
These will inform the staff appointments in the future, for the
Chamber must retain a high level of credibility being operating as a model business in terms of compliance and other considerations. Among the early tasks assigned to the new Chief Operations and Financial Officer was the development of a comprehensive Performance Management System covering all members of staff.
Previously, key performance indicators had been attached only to management
responsibilities.
These have been absorbed into an integrated system which will introduce
six-monthly appraisals for all staff, with the first taking place in June/July this year. In January 2013, the staff participated in a team-building session, and this was followed by a workshop in which the rationale for the PMS and its modus operandi were discussed.
Staff have been
urged to “raise the bar� in 2013, and, although the external relations, activities and image of the Chamber will not be neglected, the focus of management will be on internal productivity and efficiencies.
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EVENTS Events and functions have the potential to yield at least a million rand in revenue, it is believed (strategic priority #6).
A good deal of this will again accrue from the major events, viz. the
Annual Dinner and the Exporter of the Year Awards, both of which are generously sponsored by Vodacom and Transnet Port Terminals, respectively. was an inspirational keynote speaker at the Annual Dinner.
In 2012, Dr Mamphela Ramphele At the modest end of the events
spectrum, the Chamber staged a number of seminars and presentations, as well as training courses.
Most seminars, organised to provide important information and insights to
members, are conducted by people within the membership who do not charge for their contributions, but allow the Chamber to levy charges for attendance.
Some of the seminars
held in the year under review covered the Protection of Private Information Bill, Equality of Pay (a most interesting presentation by labour expert Andrew Levy), the prospect of International Air Services to Durban, an Africa Opportunity Report (presented by Ernst and Young), the municipality‟s Back of Port Plan, proposed revisions to the B-BBEE codes, development projects in the Northern and Western Areas of the city and the opportunities presented by the Jobs Fund.
The name „Power Connection‟ is given to lunch functions which feature high
profile speakers, and three such events were held. They featured Maria Ramos, CEO of Absa, Thuli Madonsela, the Public Protector, and iconic business personality, Bobby Godsell. Executive Forum events were staged.
Two
These are designed to give those who attend the
opportunity of engaging, in a smaller group, senior officials of the presenting organisation.
In
the year under review, Transnet Port Authority and its plans for port expansion, and the Provincial Planning Commission were featured. Bank.
These were kindly sponsored by Capitec
For the second year, the Chamber held an Economic Symposium, in 2012 the subject
was the Economics of Tourism and among an excellent panel of speakers, Dr Roelof Botha came from Gauteng to deliver the keynote address. Reference has already been made to the extremely successful Women Empowerment Conference which will become an annual feature of the Chamber‟s event calendar.
The
advancement of women and better representation in Chamber structures was an additional priority motivated by the Board. A successful corporate golf day was held while regular
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networking events, called Coffee Connection, were staged in various venues.
They have
proved to be very popular among members. The most recent of these during March drew over ninety people.
ACKNOWLEDGEMENTS The Chamber, acknowledges with gratitude
SPONSORS OF VARIOUS EVENTS, INCLUDING, NOTABLY, VODACOM, TRANSNET PORT TERMINALS, CAPITEC BANK, ABSA, TIKZN, FNB, SEDA AND MANY OTHERS.
THE SERVICES OF THE MEMBERS OF COUNCIL AND THE BOARD; THE WORK OF THE CHAIRPERSONS OF THE STANDING AND AREA COMMITTEES AND THE MEMBERS WHO HAVE SUPPORTED THOSE COMMITTEES;
ALL MEMBERS WHICH HAVE PARTICIPATED ACTIVELY IN THE AFFAIRS AND ACTIVITIES OF THE CHAMBER;
THE SUPPORT OF THOSE MEMBER COMPANIES THAT HAVE MADE EXPERTISE AVAILABLE FOR THE STAGING OF SEMINARS AND OTHER PRESENTATIONS;
MEMBER COMPANIES THAT HAVE ASSISTED THE CHAMBER BY THE PROVISION OF VENUES AND/OR SPECIAL RATES FOR THE USE OF THEIR SERVICES.
THATO TSAUTSE President
9 April 2013