KZN Invest_Lockdown Special by famouspublishing

KZN M AY 2 0 2 0

INVEST

Guest Column

Nigel Ward – do the right thing to save jobs and reinvigorate the economy

CONNECT COMMUNICATE COLLABORATE

Vega Talks

How to reimagine your business – the nuts and bolts of innovation

Telecoms

Ignition Group’s Valde Farradez talks about paying attention to customer pain points

LOCKDOWN ISSUE

Property

How will the local property market weather this storm?

Elevated by challenge LOCKDOWN SPECIAL

COVID-19 Funding Relief Landscape in South Africa The recent global health crisis has many business owners deeply concerned about the health and wellbeing of family, friends and employees. Whilst the drop in revenue that is attributed to the potentially protracted lockdown period will be most severely felt in sectors such as travel, tourism, hospitality, retail and entertainment, no business is left unscathed. Many suppliers may have had to shut down their production and exporters are faced with a slump in demand and freight capacity. At the end of the day it effectively comes down to cashflow, the lifeblood of any business. To support businesses, we have compiled a COVID-19 Funding Relief guideline for South African businesses to navigate funding options. https://issuu.com/famouspublishing/docs/absa_business_banking_covid19_funding_relief_inter Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7

ED’S LETTER

LOCKDOWN Issue 2020

guard down and dismiss it as the “shambling zombie” in the distance as Nobel prize-winning economist Paul Krugman described it, then it will strike. We have to stay the course, and we know we walk a terrifying tightrope keeping the economy grinding and the population safe. Around the world, this demands public-private partnerships, the likes of which most of us have never seen. It calls for a government of national unity in South Africa. Neither the government, private sector nor civil society has a monopoly on the expertise to deal with this alone. They need to come together and share resources and wisdom. We need to combine capabilities to model, test, trace and contain surges in the pandemic. The world changed in a matter of weeks and our new narrative is survival. It’s not always

ives versus livelihoods. Is it an either-or choice and if so, who gets to make it; you or your government? The human race is reeling in a world so surreal it beggars belief. In democracies, citizens have had to surrender many of their civil liberties on the altar of safety. How much of your freedom do you have to relinquish to live? Some might call this hyperbolic, but CNN’s Richard Quest described it as a Faustian pact. In this hazy space, trust becomes critically important. In South Africa, Cyril Ramaphosa’s initial public response to Covid-19 was downright presidential, but as days turned to weeks people have increasingly questioned the authoritarian edicts of his government. Many of its rulings, that impact

Lives versus LIVELIHOODS

on our ability to earn a living and determine when we can move around and what we can buy, are arbitrary and bizarre. Some people are ennobled by a crisis and display true leadership, while others strut around like the little tin pot despots they are – and we’ve seen inglorious examples of this. Everyone should always behave with compassion and integrity. Alas, they don’t always, but now more so than ever, we have to behave mindfully. Predictions are that South Africa’s GDP will contract between 10-17% and a global recession seems inevitable. If governments want a meaningful social compact with citizens they need to be utterly transparent in all dealings. They have to share information and explain decision-making. They need to subject their choices to scrutiny. Rational adults have the right to robustly interrogate matters of life and death. This week Ramaphosa’s address, while belated and vague,

made refreshing concessions around government missteps. Hopefully, his ideologically bent and authoritarian ministers will take heed. Just as masking and social distancing have become the norm, and words like co-morbidity and digital detox have entered our lexicon, so too have our brains started engaging around issues like modelling and epidemiology. The lockdown was meant to flatten the curve of the pandemic and hopefully has in South Africa, but in that time there is no clear evidence that the government has significantly bolstered its tracing and testing capability. It would do well not to patronise its citizenry. It cannot decide whimsically or in secret what is good for us. This is not to say that most people don’t appreciate the enormity of what we face. Covid-19 seems like a complicated and nasty beast. We would be stupid to be complacent about it. It has deadly potential to deceive: when we let our

an Armageddon movie. Many people have rightly relished the opportunity to take stock and re-align. But it has come at a cost. Major investments have been cancelled or shelved and huge unemployment and hunger loom. In this digital edition of KZN INVEST, we’ve asked clever people to try and predict how the economy will change. And, our Vega Talks, an initiative in conjunction with the university, offers businesses some fantastic ideas on how to respond to the new world. There’s a story on the critical property sector and another on a Durban telecoms company that was done before the lockdown but is interesting because the sector has never been as relevant as it is today. Good luck to us all as we hopefully start navigating what Business for Unity calls the riskadjusted restart of the economy.

gregarde@gmail.com

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W H AT ’ S I N S I D E

KZN

COVER: DURBAN THOUGHT LEADERS SHARE THEIR VIEWS ON THE ECONOMY AND OUR FUTURE

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Crucial co-operation against a common enemy Durban Chamber President Nigel Ward’s take on reopening business

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Why are you in business at all? Vega Talks with Ian Gourley and Wendy Mahoney

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Making our new normal work

Local really is lekker, now more than ever

Thought leaders share their views on our changing economy

Local trading is alive and well in Chatsworth

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Pain points can help firms find joy MVN-X’s CEO, Valde Ferradaz

EDITOR Greg ArdŽ PRODUCTION EDITOR Lorna King DESIGNER Kyle Griffin ADVERTISING Gaylene Diedericks 081 707 6313 GENERAL MANAGER Doody Adams

Copyright: All material in this issue is subject to copyright and belongs to Famous Publishing unless otherwise indicated. No part of the material may be quoted, photocopied, reproduced or stored by an electronic system without prior written permission from Famous Publishing. Disclaimer: While every effort is taken to ensure the accuracy of the contents of this publication, neither the authors nor the publisher will bear any responsibility for the consequences of any actions based on information contained herein. Neither do they endorse any products/ services advertised herein. Material which appears under ‘Advertorial’ is paid for.

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INVEST

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From virus to virtual The Durban ICC – reinventing the way they do business

Published by Famous Publishing, 52 Mahogany Road, Mahogany Ridge, Westmead, Durban, 3610. 031 714 4700 www.famouspublishing.co.za

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High hopes property will bounce back

An overview from property leaders in KZN

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Survive & thrive 13 tips to keep your business on track

Building a team is building a company – A Successful One! FOR MOST OF US, TEAMWORK IS A PART OF EVERYDAY LIFE. WHETHER IT’S AT HOME, IN THE COMMUNITY, OR AT WORK, WE ARE OFTEN EXPECTED TO BE A FUNCTIONAL PART OF A PERFORMING TEAM. HAVING A STRONG TEAM WILL BENEFIT ANY ORGANISATION AND WILL LEAD TO MORE SUCCESSES THAN NOT

OUR TEAM EFFECTIVENESS AND COHESION retreats encourage participants to explore different aspects of teamwork. Participants are given details and concepts of what makes up a team, and what factors are important in being a cohesive and successful team, all the time basing our approach on pre-retreat diagnostic assessments undertaken by individual team members. These retreats allow and encourage team members through expert facilitation to engage at individual, team and organisation levels, thus leveraging on the inter-relatedness of all three resulting in effective and cohesive teams capable of working effectively, innovatively, communicatively and creatively in delivering to their promise. Needless to point out, teams devoid of these, endlessly stumble from one problem to another.

The highly energised sessions allow even the most withdrawn and quiet team members to participate fully through carefully planned teamwork, open conversations and games. Self-awareness of individual strengths and susceptibilities is critical for anyone to assertively interact with other team members. Participants at our sessions undertake behaviour style assessments, which are debriefed by a certified behaviour analyst. With the understanding that change is not an event but a journey, teams leave the retreats with co-created team effectiveness and cohesion execution plans with specific goals, objectives and activities to implement in building effective and cohesive teams. FOR FURTHER INFORMATION AND OTHER CUTTING EDGE HR SERVICES WE PROVIDE, PLEASE VISIT WWW.HRMATTERS.CO.ZA OR CALL US ON 031 5662847

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G U E ST CO LU M N

Crucial co-operation against a COMMON ENEMY The impact of Covid-19 on the economy will be severe, writes Nigel Ward, President of the Durban Chamber of Commerce And Industry, and reopening the economy will take some doing

irstly, the Durban Chamber of Commerce and Industry applauds President Cyril Ramaphosa, his cabinet and the government for the manner in which they have dealt with this unprecedented crisis and the bold steps taken to combat the Covid-19 pandemic. All leaders, in both the private and public sector, have acknowledged that dealing with the Covid-19 outbreak has been an unenviable task, and we have to recognise the leadership and difficult decisions that have been taken in order to secure the country’s socio-economic future. The proactive action taken has gone a long way in preventing the crippling impact that large scale loss of life would have had on our society and economy, and the socio-economic strain it would have put on

critical infrastructure in the healthcare sector. IMPACT OF COVID-19 The effects of the pandemic on the national economy will be unavoidably severe. Insights from the Organisation for Economic Co-operation and Development (OECD) outlined that as the disease spreads across the world, global gross domestic product (GDP) growth could plummet this year to as low as 1,5%, almost half the 2,9% forecasted prior to the outbreak. South Africa is highly dependent on the global market in terms of trade of goods and services; hence, we believe these losses will indeed find their way into South Africa’s bottom line. In fact, Minister of Finance, Tito Mboweni, has indicated that he expects the South African economy to contract as much as 6,4% with the budget deficit swelling to more than 10% of GDP.

The Durban Chamber is particularly concerned about the socio-economic impacts of the Covid-19 pandemic and the lockdown which has led to significant losses for KZN’s provincial economy. Several critical sectors have been impacted as a result of

An extended lockdown will impact both our manufacturing and transport/ logistics sectors adversely, as these sectors are interdependent the Covid-19 pandemic. Tourism: The pandemic has brought many businesses in the tourism sector to a complete halt, translating into huge losses in terms of revenue, coinciding, as it does, with a traditionally busy Easter season. This

threatens job security on a large scale. Travel bans and the cancellation of events have contributed to further losses for allied businesses. Manufacturing, Transport And Logistics: Given the inherent complexity of regional and global supply and value chains, an extended lockdown will impact both our manufacturing and transport/logistics sectors adversely, as these sectors are interdependent. These losses will weaken our local economy further. Manufacturing and the transport sector contribute significantly to Durban’s GDP. A recent article published by the World Economic Forum outlined that the emergence of Covid-19 is accelerating the change of global value delivery models with unprecedented consequences for both manufacturers and supply chains. Small Business: SMMEs, spaza shops and informal businesses will be the worst affected given that many are reliant on monthly income to sustain operations, with no access to additional capital to ride out the current outbreak. Notwithstanding the economic stimulus package put together by the government, this tough social reality will bring more pressure to bear on the national purse. Currently, the Durban Chamber is not aware of any businesses shutting down as a direct result of Covid-19 yet, but the possibilities remain high. A number of our members in the eventing and hospitality sectors have already begun restructuring processes and jobs have already been shed, and we expect many more to be lost in 2020. According to The Durban

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lives and preserving livelihoods. Managing this process will be critical as we have to monitor our daily rate of infection and balance that against the different requirements and needs of each industry sector. The Durban Chamber, on behalf of the business community, is engaging with the details of this plan that has been provided in order to determine how organised business can work with the government to ensure the successful implementation of a smooth transition back into economic activity and productivity that will help secure social stability. The one positive that has come out of this crisis is that it has proven that the public and private sectors can work together quickly and with a singular vision in the best interests of our country. We hope this trend continues well after this crisis has ended. ECONOMIC STIMULUS PACKAGE The Covid-19 pandemic and the resultant lockdown have placed South Africa’s economy under tremendous pressure. Our economy and businesses will not be immune to the adverse exogenous and endogenous effects of Covid-19. As a result, the Durban Chamber welcomes the government’s R500-billion socio-economic relief package to fight the Covid-19 pandemic. We are optimistic that this relief will aid our ailing economy. We applaud the R50-billion allocated to social grants, which will be a significant help to the most vulnerable in our local communities, and we urge organised business to supplement this through their own or jointly co-ordinated corporate social responsibility programmes. The Durban Chamber

EDGE, high skilled labour will be better able to adapt to and absorb the shortto medium-term shocks. However, the impact will be worse for employees who cannot work from home and most likely to be low skilled. While Covid-19 has already impacted businesses across most sectors, the Durban Chamber believes the full economic impact of Covid-19 will only become

clear post-Covid-19. REOPENING THE ECONOMY The Durban Chamber supports the government’s “risk-adjusted approach” to reopening the economy. While our businesses are suffering tremendous economic losses as a result of the lockdown, we acknowledge the science and respect the statistics that indicate that a resurgence of infections in an unplanned return to

business as usual could cost the country even more. The value of human life must be prioritised above all else. In fact, this is in line with eThekwini’s goal to be the most caring and liveable city by 2030. Reopening the economy during this phase of the pandemic is a complex process with different sectors having different requirements and facing different pressures. There is a delicate balancing act between preserving

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acknowledges that this funding is not new money and has been reallocated and redistributed from the existing national budget. The Durban Chamber has the following concerns: • Reprioritised funding from other areas will alleviate the immediate stress but will mean that critical infrastructure and other development activities will be placed on hold. • Overall, established businesses will benefit. We remain concerned about how funding will reach the informal sector. • The R200-billion in loan guarantees will not go directly into the businesses but will be administered by the banks. Sadly, the lending practices of most banks and financial institutions have not transformed over the years or been adjusted to match the social reality of South Africa which has a staggering number of informal businesses operating outside the formal sector, very profitably in many cases. We are anxious to hear how the banks will cater to small businesses and microbusinesses that desperately need access to this relief offered by the government. We will appreciate some detail on how the credit committees of the banks will unlock the R200-billion, broaden their horizons and restructure their lending mechanisms as well as culture and approach to financing micro-businesses. • Existing defaults and arrears that happened for many businesses in the economic crisis that preceded Covid-19 mean that certain businesses will be excluded from accessing the funding. • Those who will benefit from the R70-billion allocated to tax relief are

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those who are currently tax compliant. Those who need help are most likely those who are in trouble and presently non-compliant. There is an opportunity here to look at the big picture and structure relief in a way that will grow and encourage future compliance. UNETHICAL BUSINESS PRACTICES AND PRICE GOUGING DURING THE COVID-19 PANDEMIC The Durban Chamber is aware that, during the Covid-19 pandemic and national lockdown, there have been increased reports and allegations about price gouging and other unethical business practices. The Durban Chamber urges all businesses to pledge to maintain food and commodity prices at fixed and affordable levels as the national lockdown continues to have a significant impact on our local, provincial and national economies as well as the global economy. We encourage the local business community to work with the government to maintain a stable pricing regime. Both direct and indirect suppliers of goods and services are bound by the Consumer Protection Act, and it is essential that businesses supply reliable, safe and quality goods and services to avoid adverse consequences. Price gouging is exploitative and unethical. The Covid-19 outbreak is an unprecedented national emergency and the business community – as a critical stakeholder and role player in South African society – needs to play its part in working with the government to support society at large. The government has taken measures to ensure the

LEFT: NIGEL WARD, PRESIDENT OF THE DURBAN CHAMBER OF COMMERCE AND INDUSTRY.

The one positive that has come out of this crisis is that it has proven that the public and private sectors can work together quickly and with a singular vision in the best interests of our country health and safety of the populace, and it is up to business to support government structures to help us all make it through this pandemic. The Durban Chamber applauds the work done so far by the KwaZuluNatal Premier’s Office, the KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs, Health, Labour, to name a few, to root out price gouging, unethical business practices and non-compliance with the lockdown regulations and Disaster Management Act. We warn offending businesses to consider not only the financial repercussions of legal action being brought to bear on them, but the fact that there will also definitely be extended reputational damage sustained by noncomplying companies, their owners and senior

employees. The Durban Chamber also recommends to all businesses that this is the ideal time to review all the applicable laws and current emergency regulations, re-evaluate current pricing strategies and practices, and develop risk management plans and procedures for dealing with enforcement agencies and the media. The Durban Chamber remains committed to promoting ethical business practice and integrity within its membership and the business community at large. We encourage all members to abide by the Durban Chamber Members’ Code of Conduct and Members’ Code of Ethics. Together we can survive the national lockdown and the Covid-19 pandemic if we all remain committed to ethical behaviour, compliance with the rule of law and compassion for fellow citizens. CONCLUSION The Durban Chamber calls on our members, the business community, chamber movement and labour movement to intensify messaging to employees and members regarding the need to adhere to lockdown regulations in order for us to collectively make progress in flattening the curve. The more we observe the regulations at community level, while we are in lockdown, the fewer infections and deaths we will see and therefore the sooner we can all return to full productivity in the business arena. Our country is depending on us all to do the right things that will save jobs and reinvigorate the economy.

A D V E RTO R I A L

A better FUTURE

Do you want to return to normal or are you ready to build something better?

he way we have been behaving as manufacturers leaves much to be desired. Until now the global economic system and rampant consumerism have failed to halt their devastating impact on natural and social capital – despite ample warning. Complex and inefficient supply chains place excessive strains on some resources while starving others. In hindsight, our pre-Covid-19 habits seem so out of balance. Stories abound of us realising and finding healing in this lockdown period, resetting our

priorities and relationships. We in the fashion supply chain have known for too long that our entire system is not sustainable. If not the industry we work in, then the way we consume, has made us all complicit in creating a world where there is growing inequality; regional, social, financial. We buy too much for a low price, but at huge cost to someone else, and nature. The environment cannot stomach our insatiable wants. BELOW: LEON BUHR, MANAGING DIRECTOR OF BELT MANUFACTURER, EQUATOR – THE BELT FACTORY™.

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BUILDING SOMETHING BETTER AND RIGHT-SIZING FOR A BETTER LEGACY At Equator – the Belt FactoryTM – since 2017 we have been on a journey to create something better – to right-size our role in the entire fashion supply chain. Not to just talk about it, but to build it. The end goal is circular economy and carbon neutrality of the product we make and deliver into your hands. That ideal is a long way off. Undeterred, we started our journey in 2017 and today we are more emboldened than ever. We are focusing on three elements – the raw materials we use; the facility where we manufacture; and the packaging and logistics footprint. We are working feverishly at all three, developing and sourcing better and more sustainably created raw materials, and improving our packaging and distribution choices. But it is our manufacturing facility in New Germany where we have, after three years, achieved the leading gain. Here we are on track to being awarded a 4-star rating by the Green

Waste management and minimisation of waste provided one of our most significant opportunities for improvement Building Council of South Africa. Our biggest learning in engaging with the Green Building Council of South Africa in collaboration with our consultants Ecolution Consulting, was that a green building certification looks at measures that affect working conditions such as indoor environmental quality, as well as operational resource consumption; energy, water and waste management. Waste management and minimisation of waste provided one of our most significant opportunities for improvement. The certification process has proven to be a broad, in-depth and real measure of the manufacturing process and facility. We are excited for the future, and that is why we at Equator – the Belt FactoryTM, call ourselves A Place of Craft and a Place of Science. Equator is approved to manufacture for Levi’s® and other leading USA brands – an accreditation not easily achieved due to their demanding standards.

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extbook answers and business clichés ring hollow when workers and company owners are left aghast at the scenes unfolding. How should local business respond? The panorama of the pandemic might not be as bleak as you imagined and, as poet Alexander Pope wrote, hope springs eternal in the human breast. This was the upshot of the first Virtual Vega Talks, hosted in collaboration with KZN INVEST and moderated by Durban Vega campus navigator, Naretha Pretorius. Panellists Ian Gourley and Wendy Mahoney considered the issues and hinged their presentations around innovation. Mahoney heads up consulting group Newmella Holdings, and Gourley is the Group Creative Director at Barrows, a global retail company headquartered in Durban. The incentive to innovate, Gourley said, was survival. Most businesses faced with the threat of closure battened down the hatches and regrouped. The crisis forced many companies to do what they ought to do routinely: clearly articulate their challenges. Innovation, he added, was a process framed by hope. “Imagining our future lifts us up ... it outlines the change that we can become and it inspires us. Hope is an elixir that helps us press on.” Gourley said businesses could draw strength from inspirational leaders like South African President Cyril Ramaphosa and New York Governor Andrew Cuomo, both of whom inspired confidence and provided thought leadership and clarity. Reimagining was fundamental to innovation

V E G A TA L K S

Why are you in business AT ALL? If there was ever a time for mindful business, now is the time. KZN companies, like firms around the world, are reeling in response to the lockdown and global economic contraction. They will do well to remember that good people and good companies are ennobled by a challenge

and required expansive thinking, Gourley said. He quoted Cuomo who said he was tired of being asked what New York was going to look like when “things get back to normal”. “Cuomo said we will

never return to the past. We will never turn back. We have to reimagine everything: travel, communication, all sorts of engagement.” Tragedies like the pandemic and the 911 disaster often had the

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consequence of improving things and benefitting civilisation, however painful the process was. “I think what we should do is reimagine things better. Humans want to make it better. I hope we look back on this as a time where innovation surged and that we don’t go back to our old ways when the tragedy wanes.” Gourley suggested businesses document this time. Innovation helped create new neural pathways and fostered a new, unrivalled sense of collaboration. “It is fantastic. We must learn and continue to learn.” In response to the pandemic, people engaged and shared innovations on open platforms, lifting humanity. At first, social distancing put the brake on

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a brainstorming session. It was based on what people were hearing, seeing and thinking. Businesses could refuel their innovation engines by better understanding changes in the world around them. Gourley said he was encouraged by the buoyancy of the human spirit, and acknowledged that while he was an eternal optimist, he felt “terrified and overwhelmed” at times because the pace of change was unprecedented. “It’s unbelievable. What were five-year plans are ABOVE: IAN GOURLEY, GROUP CREATIVE DIRECTOR AT BARROWS. LEFT: WENDY MAHONEY HEADS UP CONSULTING GROUP NEWMELLA HOLDINGS.

innovation. People needed to interact and engage and felt disconnected, as though they were operating in a vacuum. Conversation was critical to most businesses. But, people realised innovation wasn’t always

“What were fiveyear plans are now one-year plans. We are in warp speed and we are jumping to remodel and restructure. This demands new skills and thrusts new processes on us” – Ian Gourley, Group Creative Director at Barrows now one-year plans. We are in warp speed and we are jumping to remodel and restructure. This demands new skills and thrusts new processes on us. We have been disrupted by a common enemy – not a competitor – and it means accelerated processes. “My heart goes out to businesses that have to make difficult decisions as a result of this.” Gourley said Barrows had a reputation for being able to “pivot fast”. It had retained some of its traditional point-of-

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sale lines but had also remodelled in response to the crisis. The company had made screens to separate supermarket cashiers from shoppers. It was making foot-operated hand sanitiser pumps because “safety is the new experience”. Wendy Mahoney said innovation had moved from a “future aspiration to a current necessity”. She quoted Charles Darwin who said it is not the strongest of the species that survives, it is the one most adaptable to change. Those struggling with innovation needed to remember their “golden compass” was their customer. Innovation conceptualised an idea into a product or service of value to your customer. It is rooted in empathy and required inspiration and creativity aimed at solving a problem. “Innovation requires that we look outside of ourselves. We don’t know what the future looks like, but we have a connection with our stakeholders. We can help them avoid a pain or access a gain. That’s the starting point of innovation. What does your stakeholder

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value? The value you offer determines their loyalty to you. Businesses that truly understand what their customers need will survive.” Innovation was a constant process, Mahoney said, not something episodic. It meant businesses had to evolve, create prototypes, test them out and in doing so, respond to customer pain points. Mahoney and Gourley said a key element to survival was socially responsible companies. “I think we owe it to the

ABOVE: DURBAN VEGA CAMPUS NAVIGATOR, NARETHA PRETORIUS.

people who have died that they did not die in vain,” Gourley said. “We need to make sure we apply what we are learning, to make the world a better place. We all have the opportunity to do this and companies that don’t take a social stance will be judged.” Mahoney said the world was seeing a shift from capitalism to “conscious capitalism” and companies

were mindful of moving from “net profit to net positive impact or net value”. Profit, she predicted, would be overtaken by purpose as defined by human and planetary sustainability. Gourley said companies would be publicly shamed if they capitalized on the pandemic. This demanded transparency around business and integrity of supply chains. “Do your due diligence and play by your values ... people value integrity more than price.” Mahoney said integrity underpinned innovation. “Companies now more than ever need to review their purpose for innovating and the values that support them, as their key drivers in current times. People will judge the intent behind your action more than your action. The authenticity of intent is something at the moment that is differentiating companies.” Gourley and Mahoney said the pandemic presented businesses with the opportunity to reimagine, and that companies would do well to look at what was in their asset box and repurpose around two new big issues: savings and safety. “More people are listening than ever before,” Gourley said. “Start something, do it, put yourself out there. There are changes in consumer behaviour, there is no whimsical or impulse purchasing. People are more careful with their money.” Vega Talks navigator, Naretha Pretorius, said the discussion emphasised the need for businesses to reimagine, to be humancentric and live their brand promise. “This is an opportunity to show up. To honestly assess what value you add.”

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Repositioning for POST-LOCKDOWN

recent article in The Economist says the Covid-19 crisis and response to it are accelerating three trends: an energising adoption of new technologies, an inevitable retreat from free-wheeling global supply chains, and a worrying rise in well-connected oligopolies. Also, ingenuity, not just the financial muscle, will become a source of advantage, allowing nimble and fleet-footed companies to operate closer to full speed much quicker. It makes sense therefore that we consider some steps businesses can take to adapt to the new environment as the pandemic forces a review of strategies, policies and procedures to protect employees, customers, suppliers and other stakeholders. Companies have to follow policies and procedures laid out by the Department of Employment and Labour (www.labour.gov.za), and at minimum apply protocols provided by the National Institute of Communicable Diseases (NICD) and the World Health Organization (WHO) as communicated by the Department of Health. The NICD has easyto-understand reference material including guidelines for symptom monitoring and management of essential workers for Covid-19 related infections. In fact, this is a good place to find information on what

What can companies emerging from Covid-19 lockdown possibly do to reposition themselves? Many firms wonâ&#x20AC;&#x2122;t make it through the crisis and those that do will be precarious, with uneasy consumers

ABOVE: MUSA MAKHUNGA, MANAGING DIRECTOR OF HR MATTERS.

to do should any of your employees test positive or report that someone they had been in contact with tested positive. Over and above providing returning employees with masks and encouraging them to wash their hands and keep social distancing, each employee must be screened following laid out protocols. It is advisable to follow

the guidelines as provided by the health authorities, and to allow staff who can work from home to do so until advised otherwise. For staff who are critical to the workplace â&#x20AC;&#x201C; as well as visitors â&#x20AC;&#x201C; they must undertake a simple screening questionnaire to prevent the spread of Covid-19 and reduce the potential risk of exposure

to the entire workforce and visitors. Records of the questionnaires, including details of all visitors, must be kept to allow tracing should the need arise. Some of the policies needing immediate attention are annual and sick leave policies to deal with the lockdown period and how to handle employees who are off either because they are sick or caring for someone receiving Covid-19 related care. This should include payroll related policies where people are no longer going to be clocking in because they are working offsite or from home, and tools of the trade needed for people working from home. The pandemic has suddenly pushed even the most reluctant of businesses and individuals to adopt technology that allows individuals to work from home. Firms must enable certain staff to work from home and provide them with the tools to do so. Without any shadow of a doubt, the environment businesses are returning to is going to be very different which could be good or bad depending on how each firm perceives this. The pandemic is providing an opportunity for businesses and individuals to take stock and reimagine their future and put in place actions that will take them there.

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THOUGHT LEADERS

Dale Tomlinson

CEO OF ADVERTISING AGENCY THE HARDY BOYS We are an industry able to work remotely. The reality was forced on us, and some aspects are not unwelcome. There are less cumbersome meetings and agility from that – but it is lonely. We need to come together to co-create and brainstorm. We can do that more productively, and when we do get together again, the time will be richer and better appreciated. There’s a better work-life balance now – we’re not cramming our families into Sunday. The response to Covid-19 will be prudent spending and business reassessment of brands, what role they play in people’s lives, and the new way of engaging.

Murray Collins

CEO OF THE COLLINS GROUP Covid-19 has forced decisionmaking. Before the crisis institutions around the world were sitting on cash and the South African economy wasn’t the strongest. There was a lot of trepidation around property and investment before, but this has been replaced by decisiveness. The number of enquiries on our developments on the KZN North Coast since the pandemic has been unbelievable. We’ve sold units. We live in a great place – the equivalent of Florida in the USA. The sun is shining. We will come through. We are resilient and positive people.

Making our NEW NORMAL work The global economy has almost shut down due to Covid-19, but the wheels are still grinding. KZN INVEST asked a host of thought leaders about their new normal and how they expect the economy will change

THOUGHT LEADERS

Palesa Phili

CHIEF EXECUTIVE OFFICER OF THE DURBAN CHAMBER OF COMMERCE AND INDUSTRY Agility is now more important than ever. Business leaders are asking questions around reconfiguration of the fundamentals of business. What new products can machinery be repurposed for? What expanded roles/ functions can staff take on? What is the work-from-home capacity to handle future disruptions? What are the additional measures to strengthen and maintain customer relations? Continuing to resist technology is not an option. The Fourth Industrial Revolution is here, and many empowering free online training courses are available to assist business owners. There’s increased confidence in technologies that enable remote communication and management. As businesses embrace these new processes, it will, in turn, impact operational efficiency and budgets that once placed a premium on faceto-face meetings.

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trouble due to declining circulation and advertising revenue. Some bad newspapers have been kept afloat by their ego-driven owners when they should have folded ages ago. This is a time of reflection, consolidation and co-operation. Only products that understand their audiences and are relevant to their needs will survive. I hope the post-Covid-19 era will create a better business model for the media, and better journalism.

Miles Dally

CHIEF EXECUTIVE AT RCL FOODS At RCL Foods our purpose is “More Food To More People More Often” so we have never been more relevant, rising to President Ramaphosa’s call to feed South Africa. We are doing this in the context of keeping our people safe and ensuring we have enough cash to keep the business going. As the old adage goes “never waste a crisis”. We have seen many positives emerge from this, in particular a smarter way of working and a stark reminder that we need a reset, in the broadest sense, as a society to ensure our survival.

Philani Mgwaba

ILANGA EDITORIAL DIRECTOR The impact of Covid-19 on the media industry – especially print – has been calamitous. National newspapers have shrunk considerably and some are now only accessible digitally. Magazines that were household names have shut down. The virus occurred when many media companies were already in deep

Hamish Erskine

CEO OF DUBE TRADEPORT We have had to balance essential operations onsite with most staff

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working remotely. The AgriZone provides food so it did not close. The Cargo Terminal has been on standby and TradeZone has remained open for tenants able to work during Level 5. The lockdown gave us a chance to test business continuity and our experience of remotely accessing key business applications and meeting online has largely been positive. At Level 4 more of our tenants are starting up again. There is a strong possibility that post-Covid-19 there will be a drive towards localisation of production and the emergence of new sectors. We are focusing on providing infrastructure, services and facilities to serve this growth.

Russell Curtis

INVEST DURBAN CE Personal paradigms and business models must adapt. All processes from global trade to personal communications, mobility and consumption are reconfiguring. There is innovation and opportunity in all of these, from personal and professional reinvention to corporate efficiency, diversification and digitisation. It is going to be an expanding set of new playing fields where first movers will have advantage, where those eager to grab the change will add value, purpose and most importantly, hope. This will be a survival season, so we had all better speed up our introspection, adaptation and targetting of growth opportunities in the new normal. The haves are behoved to share resources with the have nots, more so than in the past. Tolerance for fraud and corruption is done. Many of our children are starving.

THOUGHT LEADERS

far more receptive to technology and trends. This is a time for business leaders to step up by swiftly adapting, future-proofing their businesses, and creating a safe and secure environment for their staff.

Jacquie Bhana

HR DIRECTOR AT TONGAAT HULETT SUGAR Business will be completely different to survive. Some actions that were never contemplated in the old world order, will become the new normal. While it will be difficult at first, it will be a case of sink or swim. New ways of working and managing time will be based on what has become a necessity, for safety and to manage costs. Flexibility, creativity and agility will happen more naturally. Human beings are resilient creatures. People have come up with different ways of thinking – and so new opportunities have sprung up. People are acting with confidence and courage in testing new ideas and embracing technology – online meetings and trusting employees to work from home. People are supporting one another. This cannot change – this will not change.

Grant Gavin

BROKER/OWNER AT RE/MAX PANACHE The current crisis will bring about another period of enforced change for all, especially for our industry. The new norm will no doubt require us all to become more creative, adapt rapidly to changes in the market, and force those who were resisting technological change to embrace the opportunities that come with a new way of doing business. Overheads will need to be reduced as business models change, and the workforce will find benefit from more efficient use of their time due to their ability to work remotely.

Stefan Botha

DIRECTOR AT RAINMAKER MARKETING This unprecedented time has negatives and positives. In property and infrastructure, KZN has always fought way above its weight category based on prime land, climate, exceptional town-planning, and lots of bold and positive people. This trend will continue. There will be a new normal but that too will be an exciting space where we will naturally be forced to raise the game and be innovative and engaged, and

Solly Suleman

CO-FOUNDER OF SPARKPORT This has given us a chance to stop, introspect and re-examine our priorities. Never in our wildest imaginations would any of us have predicted this. Unfortunately, millions of jobs will be lost and poverty will not just be a problem for the poor. The knock-on effect of the lockdown

THOUGHT LEADERS

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Andrew Turner

SENIOR PARTNER, EVERSHEDS SUTHERLAND Our office was debating the merits of limited remote work before Covid-19 forced it on us. We have had to go from teams to Teams. The big positive is that – left to their own devices (literally!) – our people have problem solved and got things done with very little outside help. We have been forced to adopt those IT systems we used to find excuses to avoid – and they work. From a home perspective, I think schools may have discovered that they can also be more efficient. For the more senior pupils, they could move closer to a “varsity type” model with a combination of lectures, smaller group tutorials and kids’ personal work time.

Mandisa Ndlovu

will impact every business. Relief schemes will barely scratch the surface considering that we were already in a recession and still reeling from state capture. But, there will be major opportunities if the government appoints the most competent people, is tough on corruption, and demands accountability. Government has worked well with business and civil society. This rallying together could get the engine of our country moving again.

Government has worked well with business and civil society. This rallying together could get the engine of our country moving again

FNB SEGMENT HEAD KZN Many of our clients are in touch to find out if they qualify for assistance; if they can access payment holidays and secure a moratorium on bonds or other loans. We’ve been very busy. Traditionally we would be looking for new business, but now we are focusing more on helping customers stay in business. Our credit committees are meeting more often to assist with the volumes of applications. Some businesses are severely impacted. We were in a recession before Covid-19. As a net importer of goods, South Africa relies heavily on our international trading partners. While the whole world is in panic, this also serves as an opportunity for SA to localise faster, to source more goods locally.

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PROFILE

Pain points can help FIRMS FIND JOY Valde Ferradaz has traversed the forests of Papua New Guinea, caught rickety Russian planes to far-flung lands and has brokered deals in hostile territories, side-stepping bandits, drunk gold miners and prostitutes. It has all been part of his lifelong career in telecoms and through all of this, one issue has remained his focus

he CEO of uMhlanga based technology company, MVN-X, hones in on pain points, customer pain points. It is the raw data he has always relied on to fix a host of issues, whether working at Vodafone, Telkom, Cell C or Digicel. Ferradaz has spent 17 years working outside of South Africa and joined MVN-X – a subsidiary of the Ignition Group – in 2018. Throughout his career 56-yearold Ferradaz has taken a keen interest in big brands and their relationship with their customers. How brands add value in a bearish economy is especially important as consumer spend shrinks and companies battle it out for a diminishing share of thin wallets. Ferradaz ran a telecoms consultancy before Ignition founders, brothers Sean and Donovan Bergsma, roped him into their enterprise which has grown from a garage start-up in Durban to a technology giant. Ferradaz wants to help MVN-X secure a bigger share of the global mobile virtual network operator

market, which analysts value at billions. It is a massively expanding business. A mobile virtual network operator is a telecommunications service provider that does not own the network infrastructure it uses to provide services to its customers. It enters into agreements with networks like Cell C, Vodacom and MTN to get bulk access to services at wholesale rates, then it sets competitive retail prices and tailors products to suit its customers. MVN-X builds and supplies turnkey systems to mobile virtual network operators, a field that is growing in South Africa by the day. MVN-X, for example, enables retail giants like Mr Price, Clientele Insurance and Standard Bank to provide their own mobile virtual services. MVN-X provides the systems, administration and processes for these big firms to offer their customers branded SIM cards and a host of value-add

RIGHT: VALDE FERRADAZ – THE CEO OF MVN-X – AIMS TO SECURE A BIGGER SHARE OF THE GLOBAL MOBILE VIRTUAL NETWORK OPERATOR MARKET.

PROFILE

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PROFILE

walking their journey with them. He worked in Suriname before Papua New Guinea where he followed rice sellers who trekked through the countryside – and he got them to sell data. “Rice was the commodity with the furthest reach, so we hitched data on to that. Data became a currency and traded like gold, rice and coffee.” Ferradaz says South Africa has a number of big brands with incredible reach. The majority of well-established consumer brands understand the profile of their customers and what their customers’ pain points are in relation to their service offering. “If companies know this and are prepared to address these pain points, they tend to become innovative and even brave in their solutions and product offering. Digitising their customer base is an important enabler for this, as it allows brands to better communicate with

In today’s times, data is a commodity and is an essential ingredient in connecting the nation

telecommunication services. Ferradaz says it is a new world where voice offerings are enjoying a resurgence. However, data is the new commodity and big brands, wanting to retain customer loyalty and increase their share of wallet, are realising the value of rewarding customers with data and bespoke telecommunication services. In today’s times, data is a commodity and is an essential ingredient in connecting the nation. MVN-X recently partnered with global company Cerillion to implement its converged billing system, which, among other things, allows customers to get to market quicker and offer a multitude of services on one bill. Any company wanting to enrich their value proposition and offer mobile services to recurring customers is a potential client of MVN-X. Ferradaz says most mobile virtual network

operators fail when they try to compete on price, however, the potential of improved service and relationshipdriven engagement is where the real opportunity of conversion lies. “Brands don’t typically think about entering the telecoms space because it’s a sophisticated and complex digital world, but they don’t need to know about the intricacies of the business model. This is what we specialise in and do very well for our customers.” South Africa has 104 million SIM cards in circulation and smartphone penetration is at 70%. Ferradaz says the time is ripe for brands to enrich their customer engagement and value offering, especially if they know their customers well and have established trust with their customer base. Having worked in remote areas in the developing world, Ferradaz says knowing your customers’ needs means

their customers, while also enhancing their relationship by offering valueadded services.” The opportunities around that innovation seem endless and smart companies with rich data sets can mine that to design products that are both good and relevant for customers. MVN-X has done this successfully for almost a decade. The last two years (2018 and 2019) were particularly good for the company which saw growth from a 275 000 active subscriber base to over 400 000. Ferradaz says that the outlook for the next two years is positive, and he anticipates reaching a million. Ferradaz is an ardent advocate for increased access to data and says the time is right for opening the South African mobile virtual network operator market. Ultimately, competition serves customers. “The more access to data the more buoyant and resilient the economy. Mobile virtual network operators will flourish in this environment if they can properly leverage the trust their brands have established with their customers.”

CAN GREEN STARS HELP US SEE THE MILKY WAY BETTER? We think so. Our personal & corporate actions have had a hand in the climate crisis we see today. Could a reverse cumulative effect be the catalyst in driving the real change we need - if millions of us make small habit-changing, more sustainable decisions each day? One result of our journey towards a Green Star rated factory building is that we decreased the amout of waste we sent to landfill by 28% in just one year - and we're working harder to design it out of the system in the first place.

The Milky Way seems closer already.

Follow our sustainability journey: https://equator.group

A Place of Craft and a Place of Science

r o t a u q (.\ e

Tt ry " o t c a F lt e B Th e

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eep-rooted demographic and social forces drive an unprecedented need for investment in real estate assets. Investors turn to real estate assets to find yield, diversify their portfolios and steer through volatile markets, even in the wake of Covid-19. Real estate investments have generally been at the forefront of individuals and institutional investor’s strategic asset allocation portfolio, especially as real estate is one of the easiest assets to leverage. When done correctly, an investor can buy real estate, improve its value, then refinance to recover 100% (or more) of the capital. However, in the past years, the sector has undergone a dramatic transformation both within the investment structure and return in opportunity. Today, some of the costs of investing in real estate have been reduced, as initiatives to enhance liquidity and transparency in property markets have been developed. Despite changes, real estate investment remains substantially different from country to country, region to region, and from one property type to another. As real estate opportunities differ widely, traditional real estate may be differently viewed as returned-enhancement vehicles to equitybiased and fixed-income investors.

A D V E RTO R I A L

Real

Estate

A SCHOLARLY ARTICLE BY SHAUN TOWEEL ON WHY REAL ESTATE REMAINS AN ASSET, EVEN DURING TRYING TIMES  Counter-

cyclical strategies matter in a real economy

Counter-cyclical strategies allow for long-term investment which facilitates the redevelopment of living and working spaces. As such, innovation fosters further sustainable economic growth and supports stability. Real estate is one of the leading and fundamental wealth creators in society, yet it can also be a wealth destroyer. It all depends on where, when and how one buys, and even more so on how one sells. The demand for new residential estates will not only come from population growth and wealth growth, but also from adaptation from a new lifestyle. Although we are currently going through a dramatic economic meltdown with a huge amount of uncertainty around Covid-19, the importance of the residential real estate sector still remains, as it provides individuals with shelter, access to amenities and jobs.

 Shaun Toweel is a real estate advisor offering consultative property guidance in all spheres of the property lifecycle – from development and construction through to investment.

Residential real estate is a major asset market worth nearly 10 times more than that of commercial real estate. As the level of home ownership has increased over the last 40 years, house prices have become an increasingly important part of economic policy. Rising house prices generate consumer confidence and retail sales.

 Long-term institutional investors spearhead urban regeneration projects

With the aftermath of an economic recession, including Covid-19, economic growth can fall below trend for a few years. There seems to be a natural limit on home ownership of about 50 to 60% of households. When home ownership is pushed beyond these levels, as in the US prior to the sub-prime lending crisis in 2007, households then take on mortgages they are not able to support. Thus, rental property, as well as multi-family or single-family structures become an essential part of a balanced housing market. In fact, my study shows that the risk-adjusted returns in the rental residential sector are better than those of commercial real estate. Furthermore, the luxury residential sector, owner-occupied or for rent, appears to have substantially outperformed other parts of the market in the last 20 years or so. As with all real estate, GDP growth is the main influence of the housing market, but there are some interesting additional influences in the case of luxury real estate – like stock market performance. Real estate is all about asymmetric risk and reward and is a generational wealth transfer. Despite our current economic Armageddon, real estate will always be an optimal asset class due to its defensive characteristics.

A D V E RTO R I A L

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Shaun Toweel Ðreal estate VISIONARY

haun Toweel’s track record speaks for itself; he’s a seven times international property award winner and philantorcapitalist, who sees an opportunity and creates viable markets where none existed before. This KZN resident is always on the look out for new opportunities, and his latest venture is also suitably tailored for the current status quo in the world around the coronavirus and lockdowns. He is cognisant of the fact that one has to adapt with the times to flourish. “The Covid-19 pandemic has become a humanitarian challenge, which will have a protracted effect on how people live, work and play. By mitigating such challenge today, real estate leaders can best serve end-users and protect their own viability,” he says. His new brainchild, YOUFARM, is set to take the world by storm within the foreseeable future. The development will take root in the USA and Mauritius and Shaun is confident the model will also be incorporated into other countries’ real estate industries. “In the USA and Mauritius there is a huge demand for luxurious selfsustainable communities, which is a mixed development centred around contemporary farming life. This design concept would feed, provide and teach the purest natural form of life derived from nature. This is particularly apt for the current status quo following the

His story is not a typical rags to riches one, however, over the last 20 years, Shaun Toweel has managed to create a real estate empire from scratch

ABOVE: SHAUN TOWEEL’S NEW BRAINCHILD, YOUFARM, IS SET TO TAKE THE WORLD BY STORM WITHIN THE FORESEEABLE FUTURE.

worldwide coronavirus pandemic,” he explains. YOUFARM in the USA will include a contemporary farm hotel, spa, residences, farm shop or bakery, fine dining and wine establishments that are led by the everchanging tapestry of the gardens. The entire development

ABOVE: LE SAVOY AT GRAND BAIE IN MAURITIUS – ONE OF SHAUN TOWEEL’S DEVELOPMENTS.

is self-sustainable and designed to be totally independent from the needs of the real world. YOUFARM is designed to create a landmark destination, whereby people can live, work and play in a unique environment that is one of a kind. It will allow residents to enjoy the fullness of nature, tranquillity, serenity and well-being. Meanwhile, Shaun is excited about the way he expects the real estate industry to develop over the next few years. “I see the industry developing into more mixed-use communities which I like to refer as Live, Work, Play. But, I’d like to expand even further on that and incorporate a level of selfsustainability. More than ever, people are starting to see the value of living organically and creating convenient living spaces.” Shaun’s property portfolio is vast and includes developments in residential, retail and commercial components, locally and in countries such as Mauritius and the USA. He is currently the founder and CEO of a number of real estate companies including Extra Dimensions Property Group based in South Africa, One Luxury Ltd on the Island of Mauritius and Toweel Property Developments and Investments LLC based in the USA.

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LO C A L E CO N O M Y

Local really is lekker, now MORE THAN EVER With the world on the brink of a new economic order brought on by Covid-19, some communities are already reaping the benefits of trading locally. What is happening in Chatsworth, writes Greg Ardé, might offer some pointers

ade in Chatsworth” is the label independent publisher Anivesh Singh gave to a mini-movement that relies on hyper-local micro-projects. It is a cottage industry for now, but it is a good illustration of what social commentator George Monbiot observed at the start of lockdown. He wrote an online piece entitled Zombie Love Story, about the horror films getting it all wrong. “Instead of turning us into flesh-eating zombies, the pandemic has turned millions of people into good neighbours.” As I recently wrote in www.newframe.com, some might say this warmth and co-operative ethos was always alive and well in Chatsworth. Made in Chatsworth predated the pandemic, but it seems a brilliant response to the global crisis that has upset supply chains and multinational monopolies.

Chatsworth was established in the 1950s to segregate South Africans of Indian origin who were forcibly relocated there. The area was a farm named Chatsworth by a Brit named Samuel Bennington, to commemorate an area near Derbyshire in England. Former academic and author, Kiru Naidoo, whose family was moved there from the Magazine Barracks in Somsteu Road, wrote the book Made In Chatsworth under publisher Anivesh Singh’s Micromega imprint in January. One reviewer described the book as “located in the ‘kasi stories’ genre pioneered by Eskia Mphahlele, Bloke

LO C A L E CO N O M Y

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ABOVE: MADE IN CHATSWORTH AUTHOR KIRU NAIDOO WITH HIS PARENTS ON HIS FIRST BIRTHDAY. ABOVE LEFT: ANIVESH SINGH, THE MAN BEHIND THE MADE IN CHATSWORTH PROJECT. LEFT: MEC RAVI PILLAY WITH TRADERS IN CHATSWORTH.

schemes to clinics for drug addicts. While the township is far from a utopian enclave, it has always embodied vibrancy and been rooted in resistance to injustice. Famous residents include Lenny Naidu, a liberation era soldier killed by apartheid security forces in exile, and Kumi Naidoo, former Greenpeace head and GeneralSecretary of Amnesty International. Kiru Naidoo’s book celebrates the place that nurtured these people. “In Chatsworth, we did a lot with nothing,” Naidoo writes in his book. An excerpt reads: Let’s not romanticize poverty. Perhaps we did not notice the things we lacked. We had

Kiru Naidoo’s book celebrates the place that nurtured these people. “In Chatsworth, we did a lot with nothing” Modisane, Ronnie Govender and others”. In February this year – drawing inspiration from Naidoo’s book – Singh created an eCommerce platform for local businesses to market their work, harnessing the social entrepreneurship that defines Chatsworth. It has stimulated the sale of niche goods from the township and has harnessed the spirit of activism that was forged in the colonial and anti-apartheid eras and which is thriving in response to the pandemic. There are a host of Chatsworth charities and nongovernmental agencies running everything from feeding

limited wants, limited needs but we had enough. To use Neville Alexander’s words, enough is a feast. The real feast in Chatsworth was life. The energy lifted a community battered and wounded by colonialism, indenture, apartheid and forced removals. “They had done their beastly best. Yet we survived. Nay, we thrived.” Naidoo says life was about simple pleasures. “A chunk of wood could be whittled into a goolie ganda (a game with sticks). A wooden bread box quickly transformed into a cricket bat and stumps. The match that followed was worthy of a dedicated sports channel. Neither rain

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LO C A L E CO N O M Y

nor bad light ever interrupted play, just the odd car that needed to pass through the pitch.” Chatsworth, Naidoo writes, was always about selfsufficiency. People grew fruit, herbs, vegetables and chillies in their backyards, selling what they didn’t eat on the pavement. “The iconic Bangladesh Market has its origins in that survival entrepreneurship. My grandmother sold eggs and cigarettes from home. Her margins were small but she saved enough to strut her dignity.” Singh’s Made in Chatsworth is a tribute to this local resilience. When he is not doing this or publishing books for previously marginalised communities he prints occupational health and wellness booklets and posters. “Here you will find the products of hard-working, creative people who have learnt to be self-reliant despite overwhelming odds.” The Made in Chatsworth label started with the foray into books, feeding the growing appetite for heritage stories. Singh and Naidoo then became involved in an offshoot that is geared around former homeless residents of Durban who sold newspapers to earn an income. Organised by the Denis Hurley Centre, it drew the attention of the men who sourced books for 10 former homeless people to sell on the city streets – with Singh building an online mechanism to help the booksellers RIGHT AND BELOW: A SELECTION OF SNAPSHOTS TAKEN IN CHATSWORTH, INCLUDING FORMER DEPUTY MAYOR LOGIE NAIDOO.

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LO C A L E CO N O M Y

community businesses and sells a range of items from locally produced candles to pickles. One of the products is Mrs Naidoo’s home-brewed sour porridge with a flavour that is unique to Chatsworth and its famous Bangladesh Market. There are no mass commodities and products must reflect the township character. There is also no cost for businesses to list their products. The platform gives them a free online presence and once it is buzzing, Singh says he will try to create similar platforms for other townships. “The movement was born out of the desire to celebrate local,” says Singh. “Not much attention is given to the internal economy of townships. If we can get the microbusinesses to supply not only their local community but also to ‘export’ their unique products, we will help to build a sense of pride and revenue.” Most of Singh’s book titles wouldn’t raise an eyebrow from a commercial publisher oriented around making a profit, but his books are toasted by locals who cherish them. The books vary, from traditional dance to children’s stories to sporting memoirs to one in isiZulu. Kiru Naidoo says he was heartened (and surprised) by the take up of his book, which he attributes to the nature of Singh’s novel enterprise. “Honestly, I expected to sell about 50 copies: sympathy buys from friends. But in the first three months it sold over 1 000. People have fond memories of growing up in Chatsworth and their lives

There are no mass commodities and products must reflect the township character. There is also no cost for businesses to list their products

during lockdown. On the Made in Chatsworth website, buyers are able to browse through each bookseller’s collection of new and “pre-loved” books and place orders. The books can be either collected or delivered the day after lockdown is lifted, and the monies paid to the sellers in the interim to ensure they are able to bank some income and don’t become despondent during lockdown. Naidoo says the booksellers are proud people. “They are not fond of charity, they want to earn a decent living.” Singh says Made in Chatsworth connects a host of

have been defined by the community.” The same public spirit embodied in the Made in Chatsworth label has spawned another civic offshoot, a community garden at the township’s Depot Road Memorial School. Kiru Naidoo says just before lockdown two unused soccer fields at the school were ready to put under plough for the Indo-African Peace Garden. The children went home for the holidays with indigenous seedlings to nurture as a practical component of their classes. The organic garden will grow African heritage vegetables like madumbi and traditional Indian curative spices like Moringa. Naidoo and the school staff have been joined in their endeavour by a group of local engineers, scientists and specialists, all volunteering to make the most of the land for the locals. “The idea is to encourage local cultivation for the community.” ANC MP Ben Toruk says in exile at the University of Dar es Salaam, President Julius Nyere insisted that for two hours a day everyone tilled the soil in between lecture halls. Food gardens replaced flower beds. “This year we won’t celebrate the anniversary of Indian indenture in South Africa by building a statue that pigeons will just shit on,” Naidoo says. “We figured the garden was a much better idea.”

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D U R B A N I CC

WE ARE AIMING TO BE RECOGNISED AS “AFRICA’S SMART LINDIWE RAKHAREBE, CEO AT THE DURBAN ICC.

From virus to VIRTUAL

How the ICC has responded to Covid-19

he conference industry – a key element of the tourism and hospitality sector – has been massively affected by Covid-19. KZN INVEST spoke to Durban ICC CEO, Lindiwe Rakharebe about the road ahead. The business of the Durban ICC is about conferences and meetings, the very thing outlawed by the lockdown. How many events had to be postponed or cancelled?

Luckily we have built strong relationships with our clients over many years, so we only had a handful of cancellations, but when the lockdown was announced basically all our events had to be rescheduled to future dates. During this time, we are also working with our clients on our Virtual event offerings, seeing how we can help convert their traditional face-to-face conferences into online events using our live-streaming technology.

Q A

Assumptions are difficult at this time, but what timelines are you using in your predictions? We are working with a number of scenarios, but the most optimistic predictions are that live events from the local market will start up again in October, with international events returning in about 12 months. We are also following local and international news closely to see how daily developments could impact the

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D U R B A N I CC

Video-on-demand events, and Remotepresentation technology. What is a Virtual or Hybrid event? A Hybrid event is simply the combination of a traditional face-to-face event with an online component, which extends the reach of the conference to a wider audience using technology like live-streaming. The best part is that companies are

Q A

What are the other benefits for the Virtual delegate? The Virtual delegate can: • Get all the content of the live event from the comfort and safety of their homes. • Watch the speakers via the video feed and view any presentations via the picture in picture mode. • Engage remotely with the event in real-time via the event’s chat or social

We currently offer clients a range of innovative solutions such as Hybrid events, Live-streaming, Videoon-demand events, and Remote-presentation technology

ICA’S SMARTEST CONVENTION CENTRE” – CC.

tourism industry and influence our scenarios. It certainly helps to be actively involved in our international industry associations, as you get the benefit of the best thinking from around the world, especially from countries who have been impacted by the pandemic ahead of us. Meetings and communication are still essential. How are you reinventing the Durban ICC and your business? The Durban ICC has always aimed to position itself as “Africa’s Leading Convention Centre”. Having invested in the latest, cutting-edge meeting technology, we are reinventing ourselves as the continent’s leading high-tech, innovative convention centre. Without losing anything from our existing market positioning we are adding this competitive edge and aiming to also be recognised as “Africa’s Smartest Convention Centre”. We currently offer clients a range of innovative solutions such as Hybrid events, Live-streaming,

taking advantage of this kind of event solution even during the lockdown by using the technology we offer and not necessarily waiting until live events fully start up again. Some are even able to reach much larger audiences by taking their events online than they would have had with a traditional live event, and thus are able to monetize them accordingly.

media channels. • Share the content with others in their organisation directly without having to repeat it themselves second-hand to their colleagues. • Choose to consume the event content at a later time if that suits their schedule. • View selected elements from the event programme which pertain to their area of interest.

ABOVE: WE ARE AIMING TO BE RECOGNISED AS “AFRICA’S SMARTEST CONVENTION CENTRE” – LINDIWE RAKHAREBE, CEO AT THE DURBAN ICC.

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P R O P E RT Y

HIGH HOPES property will bounce back The economy, already in the doldrums, has been battered by Covid-19. Does this mean residential developers and estate agents will shut up shop and go home?

ground to a halt and preliminary data showed that volumes plummeted by around 60% yearon-year in April. FNB estimates suggest that GDP could contract by between 7% and 10%. This implies employment loss of at least 750 000. But, a raft of policies adopted to support

the economy could help limit damage and set the stage for a rebound once the shock passes. “We expect house prices will decline by around 5% and transaction volumes by around 45% this year. In comparison, prices declined by an average 1,5% and transaction volumes by

ar from it. If the mood of property pundits is a reliable gauge, the sector might prove to be among the most resilient in the regional economy. They would talk it up, you’d say they have everything to lose if they don’t. There’s no doubt, the data is bleak, prices will fall and margins will narrow, but the well-worn cliché about “location, location, location” has never been more apt. KwaZulu-Natal – especially coastal property and secure, gated living – could prove resilient. FNB property economist, Siphamandla Mkhwanazi, says the impact of the lockdown is yet to be felt on the property market, but annual house price growth fell to 1,9% in April, down from 2,5% in March – the slowest pace since December 2009. Since the lockdown, market activity has almost

ABOVE: CHRIS TYSON OF TYSON PROPERTIES PREDICTS THE MARKET IS IN FOR SOME TOUGH TIMES. ABOVE RIGHT: CHARLES THOMPSON, A DEVELOPER OF KEY PROJECTS, INCLUDING LARGE TRACTS OF THE SIBAYA PRECINCT, NORTH OF UMHLANGA.

around 40% in 2009 during the global financial crisis.” Chris Tyson of Tyson Properties predicted the market was in for “some very tough times”. The economy was already under pressure before the pandemic and there would be a lot of uncertainty about job security that will

P R O P E RT Y

impact the banks’ decisions to lend money. This will reduce the number of sales and affect property prices, which Tyson predicts will elicit a similar reaction to the global financial crisis in 2008, but not as severe because 2008 “came off a very buoyant market as opposed to the subdued market we have currently been working in.” Charles Thompson, a developer of key projects – including large tracts of the Sibaya precinct – painted a rosier picture. He said he hoped construction would get back to normal in a matter of weeks. “Construction is open air and we can work seven days

LOCKDOWN Issue 2020

a week and catch up lost time. A lot of the smaller builders who have suffered financially will be wanting to get back to work. Going forward, key property locations will retain value. “If anything the lockdown has driven home issues around convenience and lifestyle. Big properties with lawns and pools are difficult and costly to maintain.” Thompson predicted property prices in key locations would increase because of interest rate cuts and inflation. “The property sector is a pillar of investment. I do see unsteady times, but guys with some cash will be investing.” This was echoed by Shaun

LOCKDOWN Issue 2020

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Toweel, involved in a range of mix-use developments in South Africa and abroad. Toweel said real estate remained a fundamental wealth creator. “Although we are currently going through a dramatic economic meltdown and huge amount of uncertainty around Covid-19, the importance of the residential real estate sector still remains, as it provides individuals with shelter, access to amenities and jobs.” Marc Rosenberg, is a director of the Multiply Group, the main shareholder and key driver of The Arch in uMhlanga,

If ever there was a beacon of hope for the property sector in KZN, it was arguably The Arch, perched on uMhlanga Ridge with panoramic ocean and city views a R1,3-billion residential, retail and hospitality development. The building is 80% complete, and before lockdown was weeks away from handover of almost half of the 200 apartments to residential owners (11 of the 23 floors in the residential tower). If ever there was a beacon of hope for the property sector in KZN, it was arguably The Arch, perched on uMhlanga Ridge with panoramic ocean and city views.

Before lockdown there were 1 200 workers on site every day, working steadily to complete the last few floors, the Hilton Hotel fit out, and shop fitting in the retail and restaurant section. Rosenberg said the development should be completed by year end. “I think we are still a beacon of hope in the city. We were in the last yards and the Covid-19 reality means we can align with the new demands around public health and safety, rather than have to retro-fit. “It is actually an amazing opportunity to fit out a smart tech building to the new realities of

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LEFT: FNB PROPERTY ECONOMIST SIPHAMANDLA MKHWANAZI. RIGHT: MARC ROSENBERG IS A DIRECTOR OF THE MULTIPLY GROUP, THE MAIN SHAREHOLDER AND KEY DRIVER OF THE ARCH IN UMHLANGA.

restricted access, security and health sensitivity,” adding that Covid-19 had deepened relationships with stakeholders that consequently made the development best suited to purpose and the new world. “We are not blindly or naively positive. Our buyers aren’t financially distressed and we are very encouraged by our engagements. We haven’t

LOCKDOWN Issue 2020

had a single person pull out of their commitment. But the discussions are not just about spaces and making them safe. The development is the livelihood of many people from construction workers to commercial tenants to security and cleaners. “We have to work with our stakeholders to bring them prosperity and to keep them safe. That means constant engagement and strict adherence to safety. If we regard ourselves in a private public partnership with the government, we have to take that responsibility seriously. We have optimism and hope based on substance.”

LOCKDOWN Issue 2020

BUSINESS SENSE

Survive & THRIVE With the initial lockdown period extended, it is imperative for businesses to use this time wisely and plan accordingly. International award-winning business coach Darryn Le Grange shares 13 action item ideas for business owners to work on their business through this crisis

Dream Chart: If you have not yet had the time, now is a great time to compile your dream chart. Remember, your business is the vehicle that will assist you in achieving your life’s dreams and goals. Encourage your family to get involved and do their own dream charts too.

Vision: Spend some time getting clear on your business’ vision and make sure you find your purpose in business. Everything you and your team do should be in line with your company’s vision. Businesses with a clear purpose are almost always more successful than those without one.

Learning & Development: Grow your knowledge during lockdown. Read business books, participate in webinars or sign up for an online course. Encourage your employees to learn new skills as well.

Organisational Chart: Take time to look at the structure of your business currently and reassess any changes or adjustments that may need to be made. It is also advisable to forecast the structure of your business in three years’ time.

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E-commerce: Does your business have an e-commerce component? If not, is this something you should consider? Digital Footprint: Google your business and your industry. Did you find what you were hoping to find? Does your business feature? If not, what can you do to address this? Spend time working on

building your online brand. Update your website content, work on your LinkedIn profile and write blog articles for social media.

Get To Know Your Clients: Connect with both past and present clients. Phone and/or email them to show them that you care. Be compassionate, especially if their industries are being affected. Consider sending out surveys or polls to your client base to gather

In the spirit of helping business owners during this time of crisis, ActionCOACH Founder, Brad Sugars, has compiled 10 FREE VIDEOS TO HELP BUSINESSES SURVIVE AND THRIVE DURING THIS PERIOD. To request these free, 10 strategies to get you and your business through the Coronavirus economic crisis, please email Chenal at adminkloof@actioncoach.com

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Marketing: During tough times keep your pipeline full and don’t stop marketing and selling. Upskill yourself and grow your marketing and sales knowledge during lockdown.

Review Financials: Spend time comparing year on year financials. Are there any expenses that you may need to review, and are there any changes that will need to be made?

Standard Operating Procedures: Review your systems, add to them and refine them. If you have not yet had the time, now is a great time to start writing your standard operating procedures. Update your company operations manual and improve or upgrade all relevant company documents.

Declutter & Re-organise: Apart from your desk or home office space, spend time decluttering your digital platforms as well. Sort through your email inbox, back up your computers and organise your online files and folders.

Action Plan For Re-opening: It is critical to work on a plan for your business for when lockdown is lifted. In order to hit the ground running you need to plan for day one, week one, month one and so on. Don’t be caught without a plan. Prepare, stay positive and turn this time into a personal and business development opportunity.

information on your business and learn from the valuable feedback you receive. Above all, remember that the way you treat your customers, especially during trying times, will go a long way in reinforcing loyalty and securing customers for life.

Review Products & Services: Make time to review and revise your products and/or services. Do you need to adjust your offering? Are there any additional products/services you could offer? Ask yourself what you could do to enhance your offering.

ABOVE: DARRYN LE GRANGE FROM ACTIONCOACH IGNITE.

FULL TURNKEY SPECIALISTS

International Property Award Winners

Precision • Detail • Passion • Innovation • Vision • Professional Service Matthew Toweel • +27 72 693 5120 • matthew@toweelbros.co.za

KZN Invest_Lockdown Special

Articles inside

A better FUTURE

Survive & THRIVE

Local really is lekker, now MORE THAN EVER

HIGH HOPES property will bounce back

Pain points can help FIRMS FIND JOY

Making our NEW NORMAL work

Why are you in business AT ALL?

Crucial co-operation against a COMMON ENEMY

Lives versus Livelihoods