Opportunity Issue 112

TARIFFS MUST MAKE BUSINESS SENSE

SAIPPA is tracking how tariffs affect the renewable energy sector

BUSINESS CONFIDENCE

GAINING TRACTION

SACCI’S Business Confidence Index shows best improvement since Covid

SOUTH AFRICA'S ROLE IN THE AGI REVOLUTION

DATA IS THE KEY TO SPEEDING UP MINING INVESTMENT

The green transition urgently needs critical minerals

STARLINK TO SOUTH AFRICA

An empowerment arrangement could attract the tech giant

A rich legacy and adaptability are the keys to Medihelp Medical Scheme reaching this milestone, says VARSHA VALA, Principal Officer of Medihelp

Ensuring Energy Supply in Mining and Related Sectors

Petroleum Agency South Africa explains why it is vital that South Africa increases its onshore and offshore gas exploration activities.

South Africa’s mining industry continues to play a vital role in our economy, heavily contributing to employment, foreign exchange earnings and the GDP. According to the Minerals Council South Africa’s Facts & Figures 2023, South Africa's 2022 mineral production reached a new high of R1.18-trillion, surpassing the R1.1-trillion mark recorded in 2021. This was the first time the industry topped the trillion-rand mark and directly contributed 7.53% to the economy.

By the end of March 2024, there was a 4.12% decline in mining revenue and a projected decrease of 2.97 % by the end of 2024 (Directorate: Mineral Economics and Statistics, 2024). One of the biggest factors identified to be negatively impacting the growth of mining in South Africa is security of energy supply, i.e. power cuts and inflated fuel costs. By Q2 of 2024, South Africa saw an increase of more than 2 % power supply in real terms, but the reduced performance in the mining industry indicates the impact which these phases of unstable electricity generation had on production outputs.

The country's ongoing energy dilemma has severely impacted many strategic industries, particularly the high-energy-intensive mining sector. Increased expenses in most mining operations have been associated with unreliable power supply and high electricity costs. Apart from the energy crisis, decarbonisation initiatives such as the Carbon Border Adjustment Mechanism (CBAM) add to the pressure and uncertainty for the future of most mining companies, especially with trading ties to Europe. CBAM has finally reached the transitional period where emissions reporting is mandated without "financial adjustment" as of 1 October 2023. On 1 January 2026, the permanent CBAM system will go into effect, requiring financial adjustments through the purchase of certificates (Carbon Chain, 2024).

Natural gas has been identified as

to attain energy sovereignty, therefore as South Africa’s upstream oil and gas regulators, Petroleum Agency South Africa (PASA) is on a mission to promote and increase exploration and production activities of oil and natural gas. PASA is mandated according to the Mineral and Petroleum Resources Development Act (MPRDA) to provide effective and efficient regulation of onshore and offshore upstream oil and gas activities in South Africa. Furthermore, the agency has a vision to lead a diverse upstream petroleum industry that can meaningfully contribute to the economic development of the country.

South Africa is endowed with high potentials of natural gas deposits found in both unconventional petroleum systems, ie Shale Gas, Coal-Bed Methane (CBM) and Deep Biogenic Gas (DBG), dominantly located onshore, and conventional petroleum systems, ie Block 11B/12B offshore. Natural gas currently forms 3 % of South Africa’s energy mix, with an expected increase to 14 % by 2030. Majority of South Africa’s natural-gas demand is met through imports from Mozambique via the ROMPCO pipeline supplying to the following three largest consumers: industrial, domestic and power generation.

Petroleum Agency SA records an estimate of more than 290 trillion cubic feet (Tcf) of gas resources, with over 81% of these deposits located onshore (Figure 1). South Africa has several critical gas exploration projects at various stages of development, with a few onshore highlights being the Virginia Gas Project in Free State Province, Kinetiko’s recent gas discovery in Amersfoort and Volkrus, Mpumalanga Province and various initiatives by government to lift the moratorium on shale gas developments in the Karoo Basin and enable exploration activities of this estimated 200 Tcf of natural gas.

PASA's Board of Directors and technical experts at the Virginia Gas Project site for monitoring and evaluation.

Dr Mimi Mokoele, Shale Gas Project Manager at Petroleum Agency SA.

Offshore, South Africa has a discovery of 0.5 Tcf in the Ibhubesi gas field on the West Coast, Orange Basin and 3.2 Tcf gas discovery in Block 11B/12B. Considering that only 3.2 Tcf out of the estimated 10 Tcf of the entire Padavissie Prospect has been unlocked to date, the full potential of Block 11B/12B presents an opportunity for the construction of an entirely new gas-to-power capacity on the South Coast.

The West Coast records an estimate of 22 Tcf natural gas, which provides yet another opportunity to develop a GTP plant as a baseload in the Northern Cape Province to supplement the vast amount of new renewables being brought into the grid. Furthermore, the gas has a potential to supply Eskom’s Ankerlig OCGT peaking power plant on the West Coast. Increasing our exploration efforts for gas as a country could change the trajectory of our economy and improve growth in strategic sectors such as mining.

The draft IRP 2023 emphasises the need and urgency for South Africa to implement various energy solutions to supply rising local demand. Although the goal is to have energy pathways that are dominated by renewable and clean energy technologies to deliver the desired outcome for decarbonising the power system, the document also acknowledges the fact that these pathways do not provide security of supply and they carry the highest cost to implement. Access to reliable and affordable electricity also requires the new energy systems to be crucially supported by reliable energy sources such as natural gas as a baseload.

With gas forming such a low percentage of our current energy mix and Mozambique being our main supplier, South Africa should expand its gas consumption across various sectors to drive economic transformation and industrialisation. In addition to the IRP 2023, several legislations are in place to guarantee security of supply and accelerate the development of upstream oil and gas projects in South Africa, including the Upstream Petroleum Resources Development Act (UPRDA, which was signed by President Cyril Ramaphosa in October 2024) and the SANPC Bill.

An increase in the number of licence applicants and multiple-lead projects by companies like Renergen and Kinetiko also indicate a growing interest in South Africa's onshore gas exploration efforts. Currently, onshore oil and gas activities are classified under: 23 Technical Compliance Permits (TCP), 29 Exploration Rights (ER) and one Production Right (PR) by Renergen. Offshore upstream activities are categorised into 16 Exploration Rights and 8 Production Rights held by companies such as PetroSA, Sunbird Energy and PetroSA, TotalEnergies and Eco Atlantic. Apart from Block 11B/12B, offshore activities are led by Namibia's continuous oil and gas campaign in its portion of the Orange Basin (26%), sparking more interest in unlocking the South African side of the Orange Basin (74%).

It is important to approach everything from a value-chain standpoint and heavily invest in developing well-functioning infrastructure. The IRP 2023 recommends 8 596 MW of gas-topower projects to come online in the next six years, whereas the Petroleum Agency SA estimates over 290 Tcf of gas both onshore and offshore (Figure 2). If a 1 000 MW baseload gas-to-power plant can run on 1 Tcf of natural gas for a period of 20 years, an estimate of 290 Tcf presents endless opportunities.

Figure 2. Gas-to-power recommendations from the IRP 2023 Draft. Source: www.energy.gov.za

Summary

With such high estimates of natural gas deposits, opportunities are endless for the expansion of the gas industry in South Africa through the development of new gas-to-power projects, gradual conversion of old “coal power fleets” to “gas-fired power plants”, conversion of the diesel-fuelled OCGT plants to natural gas, industry supply and exports.

It is clear that South Africa possesses substantial quantities of gas to support the country’s National Development Plans to reindustrialise and drive economic transformation, while we simultaneously address our climate change commitments by reducing carbon emissions.

Figure 1. South Africa’s onshore and offshore gas potential.

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Our History: A Commitment to Excellence

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Contents

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SACCI NEWS

SACCI welcomes 2025 and looks forward to a good year.

EMPOWERING SMMES

The Absa-SACCI Limpopo SMME Summit was held at the Euphoria Golf and Lifestyle Estate, Limpopo, in September 2024.

120 YEARS OF EXCELLENCE IN HEALTH COVER

Medihelp Medical Scheme celebrates a major milestone.

TARIFFS NEED TO MAKE BUSINESS SENSE

Opportunity spoke to Thembani Marhanele, chair of the Tariffs and Wheeling Workgroup of the South African Independent Power Producers Association (SAIPPA) on the importance of getting tariffs levels right.

DEVELOPING A MARKET FOR BUYING ELECTRONS

The Chairman of SAIPPA, Brian Day, explains the concept of wheeling.

LEGAL REFORMS CAN UNLOCK SA’S WIND ENERGY FUTURE

Lena Chirwa, board member at the South African Wind Energy Association (SAWEA), explains how important compliance is as the wind-energy market in South Africa matures.

POWERING UP: SOUTH AFRICA'S ROLE IN THE AGI REVOLUTION

By Mandy

Hattingh, Legal Practitioner, NSDV.

DATA IS THE KEY TO SPEEDING UP MINING INVESTMENT

The world urgently needs to find more of the minerals needed to power electric vehicles and the transition to a greener economy. Opportunity spoke with Kimmo Tiilikainen, the Director General of GTK (Geological Survey of Finland). 22

SOUTH AFRICA AT THE MINING INDABA 3

- 6 February 2025

MINISTER MANTASHE

Promotion

of

Responsible Mining Practices:

The DMRE has actively promoted responsible mining to ensure the sustainable and efficient use of mineral resources while minimizing environmental impacts. It engages with stakeholders to enhance transparency, accountability, and ethical practices in the mining sector.

Establishment of the Junior Mining Exploration Fund:

In partnership with the Industrial Development Corporation, the DMRE initiated a R400 million Junior Mining Exploration Fund. This initiative aims to stimulate investment and growth in the mining sector by supporting qualifying enterprises in mineral exploration.

Combating Illegal Mining:

The DMRE, in collaboration with law enforcement agencies, has implemented operations like "Operation Vala Mgodi" to tackle illegal mining activities. These efforts have focused on closing illegal mining shafts, confiscating illicit equipment, and enhancing the regulation of the mining industry.

TALKS WITH MR TIM MODISE

Development of the South African Mining licensing system.

The DMRE has made progress in implementing a modernized Mining licensing system. This digital system is designed to streamline the licensing process, improve transparency, and provide accurate and accessible information about mineral rights and licensing across South Africa

Record Safety Achievements in Mining:

Through collaboration with industry stakeholders, the DMRE has contributed to significant safety improvements in mining, achieving record-low fatalities. For instance, 2024 saw a 24% reduction in mining fatalities, reflecting the department's dedication to promoting safe work environments.

Artisanal and Small-scale mining Fund:

In February 2023 DMRE issued a call for applications to Artisanal and Small Scale Mining Fund. Twenty projects have been approved, of which three are female owned.

Details

Wednesday, 03 March 2021

21:00pm

Channel: 412

WORK-INTEGRATED LEARNING PROGRAMMES

VuMore than 700 students and graduates will benefit from a grant issued by the National Skills Fund to Resolution Circle.

STARLINK TO SOUTH AFRICA

Bruce Hunt, Managing Director at Transcend Capital, believes that an empowerment arrangement could be the way to attract Starlink to South Africa.

EMPOWERING THE TOWNSHIP ECONOMY

Annelene Dippenaar, Chief Business Officer at Shop2Shop, reports on what needs to be done to accelerate the transition to cashless transactions in South Africa’s townships.

FIVE BUSINESS-TRAVEL MYTHS

Rethink your next trip, writes Bonnie Smith, the General Manager of Corporate Traveller, because common perceptions are often plain wrong.

TRUMP POLICIES MAY CAUSE AN INITIAL DOWNTURN

Citadel foresees continued sticky inflation, a strengthening dollar and strained global trade relations as a result of Donald Trump’s “America First” protectionist policies.

ECONOMIC DATA

The latest economic data: SACCI Business Confidence Index (BCI) and Trade Conditions Survey (TCS).

Celebrating 23 years of black excellence

MNS Attorneys is one of South Africa's leading black-owned law firms with wide-ranging expertise in the mining sector

Established 2002

Legal expertise in your corner

Mncedisi Ndlovu & Sedumedi Attorneys (MNS Attorneys) draws on more than 100 years of combined experience to deliver innovative legal advice to our clients.

Our commitment is to provide + the best legal outcomes

+ unwavering focus on customer service

We approach complex legal challenges armed with a keen understanding of our clients’ needs and a determination to use our multi-sector legal expertise to arrive at solutions that are in their best interests.

MNS Attorneys provides a full complement of legal support and advisory services to mining companies, including providing regulatory advice and assistance with regards to exploration, prospecting and mining operations; completion and lodging of applications for mining rights, mining permits and prospecting rights; drafting and lodging various applications with the Department of Mineral Resources and Energy; conducting legal and ESG due diligence; providing advice on corporate governance and compliance; and drafting mining, construction and commercial agreements.

+ Excellent legal counsel in key areas of business and government.

+ Client base includes companies, financial institutions and government.

As a black-owned law firm, we hold true to the values of a democratic South Africa.

We strive to be the best and lay down foundations that can be built upon by the next generation of black lawyers.

Is greening slowing?

COP29 has come and gone. While the annual international climate conference invariably produces nail-biting drama (Will they sign? Will there be a walkout?), the very fact that representatives from nearly 200 countries and countless NGOs gather to deal with the global crisis that is climate change is a good thing.

The focus of the 2024 UN Climate Change Conference (COP29) was on providing finance to the developing world to protect its citizens from the worst effects of climate change and to help them take advantage of the economic opportunities that green energy presents. The International Energy Agency estimates that 2024 will the first year in which investments into clean energy will exceed $2-trillion.

The global goal for financial support through the UN initiative has been raised threefold, to $300-billion annually by the year 2035. The plan has been named the New Collective Quantified Goal on Climate Finance (NCQG). In addition, efforts will be made to encourage further investment from private and public sources.

South Africa has been one of the early movers to partner with foreign countries to assist the country transition from fossil fuels. The $8.5-billion Just Energy Partnership Transition (JEPT) with the US, UK and EU aims to phase out coal by 2035.

As several interviews and articles in this issue point out, if the transition to green energy is not to fizzle out, finding and mining the relevant minerals will be as important as building and expanding the renewable energy sector.

In this issue

One of the bodies keeping an eye on policy in the renewables sector is the South African Independent Power Producers Association (SAIPPA): two interviews with key members provide insight into the importance of tariffs and the concept of wheeling.

South Africa must adjust its legal framework to cater for the rapidly evolving renewable energy environment, argues Lena Chirwa, board member at the South African Wind Energy Association (SAWEA). Legal clarity is needed on a host of issues, including land ownership, the complex nature of some projects, access to grid connections and regulatory compliance.

Data centres need lots of power, and if South Africa is to keep up with the rest of the world, it needs to be sure that these data centres can be powered by green energy. Mandy Hattingh, Legal Practitioner at NSDV, examines South Africa’s role in the next step in the AI revolution, Artificial General Intelligence (AGI).

Data is one of the key issues raised by Kimmo Tiilikainen, the Director General of GTK (Geological Survey of Finland). The world urgently needs to find more of the minerals needed to transition to a greener economy and the best way of doing that efficiently is to have control of the relevant data.

More than 700 students and graduates will benefit from a grant issued by the National Skills Fund to Resolution Circle. Bruce Hunt, Managing Director at Transcend Capital, believes that an empowerment arrangement instead of an equity model could be the way to attract Starlink to South Africa.

Annelene Dippenaar, Chief Business Officer at Shop2Shop, reports on the need to accelerate the transition to cashless transactions in South Africa’s townships.

There are at least five strongly held beliefs about business travel that Bonnie Smith, the General Manager of Corporate Traveller, wants us to discard or at least challenge. Her article unpacks five business-travel myths.

Citadel foresees continued sticky inflation, a strengthening dollar and strained global trade relations as a result of Donald Trump’s “America First” protectionist policies.

John Young, Editor

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Managing director: Clive During

Online editor: Christoff Scholtz

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Website: www.gan.co.za

THE ULTIMATE PORTS EXPERIENCE

The Ports of Walvis Bay and Lüderitz lie on the West Coast of Africa. The Namibian Ports Authority is a body corporate established by the Namibian Ports Authority Act, 1994 (Act 2 of 1994) as a state-owned enterprise. Namport’s mandate is to exercise control and manage Namibia’s ports, lighthouses and other navigational aids in Namibia and its territorial waters.

The Port of Walvis Bay oversees container imports, exports, and transshipments, along with bulk and breakbulk cargo for various industries, including petroleum, mining, construction, and fishing. Additionally, it caters to the tourism sector through a dedicated cruise liner berth and terminal.

The Port of Lüderitz oversees the export of mining commodities from the southern region of Namibia and the Northern Cape of South Africa. Additionally, it supports the local fishing industry and operates as a supply base for the oil and gas drilling campaigns.

NAMPORT ACTIVITIES

TRADE ROUTES NAMPORT SERVES

Strategically located along the Namibian coastline, Walvis Bay provides direct access to principal shipping routes, making it a natural gateway for international trade. Its world-class infrastructure and equipment ensure reliable and safe cargo handling.

The favorable temperate weather conditions of the bay enable timely operations, thus facilitating Namibia’s largest commercial port, the Port of Walvis Bay, to accommodate approximately 1,600 vessel calls annually, with a handling capacity of 10 million tons of cargo.

GEARED FOR GROWTH

Namport focuses on being the best performing seaports in Africa. Therefore, Namport continues to invest in port infrastructure to ensure Namibia is not only compliant with the International Ship and Port Facility Security code (ISPS), but is also geared towards opportunities for future growth.

In 2019, a new container terminal worth N$4.2 billion was brought into operation. It provides infrastructure and deployment of ship-to-shore gantry cranes for the first time in Namibian port history, firmly establishing a competitive position in relation to other ports for the critical hinterland markets. This raises the handling capacity to 750 000 TEUs, which is double the previous 350 000 TEU’s.

News & snippets

Industry insights from the past quarter

New space for students in Joburg

Student accommodation is in short supply so the conversion of an office block in the middle of Johannesburg to accommodation for 1 000 students was rightly celebrated at the official opening of Fedsure House in November 2024. TUHF funded the project for Focus1, a long-time client of the specialised commercial property financing company that has an inner-city focus. An earlier project, Cape York building, was similarly financed for the student accommodation supplier by TUHF. Located at 13 Plein Street in Johannesburg’s CBD, Fedsure House has a gym, an entertainment area, a library and a computer lab. The facility also offers essential amenities such as convenient access to a reliable bus network for transportation to various campuses, a 24/7 boiling water system, inhouse management, maintenance and cleaners, biometric access for enhanced security, uncapped Wi-Fi, a laundry room and a back-up generator.

Driving innovation in drones

Rectron, an ICT company offering software, networking, data-centre solutions, surveillance, data storage and cloud computing, has announced its collaboration with NTSU Aviation Solutions, a South African startup revolutionising the drone industry. Through this partnership, Rectron is equipping NTSU Aviation with the cutting-edge technology and support needed to expand its operations and drive innovation within the country's rapidly growing drone sector. According to Statista Market Insights, the drone market in South Africa was expected to generate a revenue of $10-million in 2024 (up 12.4% from 2023) and is projected to experience an annual growth rate of 4.58%, compound annual growth, 2024-2028. In addition to acting as a key Rectron drone reseller in the fast-growing drone sector, NTSU also assists clients in the facilitation of Air Service License (ASL) and UAS Operators Certificate (UASOC) approvals. With an investment of over R650 000, Rectron is empowering NTSU Aviation to invest into placing drone pilots, drone technicians and administrative and consultancy personnel, as well as critical training equipment such as laptops, projectors, multimedia displays, drones and other accessories. The partnership between Rectron and the NTSU Drone Academy sponsored seven students in 2023 to do drone training, which included pilot licences as well as maintenance technician and advanced pilot training (Beyond Visual Line of Sight). All seven students were placed immediately after completing training

Transforming Africa through innovation and sustainability

ICRD Group Holdings is a dynamic Pan-African business group pioneering transformative change through its triple-bottom-line approach, which equally values people, the planet and profit.

Established in 2008, ICRD Group delivers economic, social and environmental value through innovative, marketdriven initiatives that empower businesses and ignite meaningful change across society.

Our vision

We aspire to create a world where technology and nature coexist harmoniously, enhancing the quality of life for communities globally.

Our services

ICRD Group offers a comprehensive suite of services through its venture-building studio:

• Capital raising: Securing funding for impactful ventures.

• Project preparation services: Guiding projects from conception to execution.

• Business incubation: Empowering startups with resources, mentorship and strategic support.

• Advisory services: Delivering tailored strategies aligned with client goals.

• Strategic communication: Telling impact stories to influence and inspire action.

Leadership and Recognition

Led by Founder and Executive Chairman Lucky Litelu, ICRD Group has emerged as a hybrid development institution driving sustainable growth in Sub-Saharan Africa. The group’s innovative revenue model sustains its ambitious expansion and fosters

inclusion in the macroeconomic ecosystem. In December 2024, ICRD Group was honoured with the Innovation Excellence Award from the South African government for its contributions to fostering innovation and meaningful change across Africa.

Our philosophy

Integrity, collaboration and tailored solutions are at the heart of our business. Through strategic partnerships and a deep understanding of the unique challenges in African markets, we craft scalable solutions that enhance resilience, transform ideas into reality and leave a legacy of lasting impact. With its visionary leadership and unwavering commitment to sustainable development, ICRD Group Holdings continues to be a beacon of hope, innovation and empowerment for Africa and beyond.

Our approach

Collaboration is the cornerstone of our methodology. We partner closely with clients to develop tailored, innovative solutions that address their distinct challenges while creating sustainable competitive advantages. Leveraging our extensive industry experience and functional expertise, we go beyond conventional thinking to deliver fresh insights, drive organisational transformation, achieve measurable results and enhance longterm capabilities.

Founder and Executive Chairman Lucky Litelu, ICRD Group, at a JSE event for the FinTech Startup Accelerator.

Karabo Mohole, Chief Operations Officer, on stage at BeGreen 2024.

News & snippets

Industry insights from the past quarter

Mpumalanga mall gets grid-tied solar plant

Global EPC company Neosun Energy has launched a commercial solar station at Dayizenza Mall in Mbombela (Nelspruit). The grid-tied solar PV plant has a total capacity of 1MW and is expected to reduce 25 807 tons of CO2 emissions, further establishing the mall as a leader in promoting sustainable practices within the region. Financially, the project demonstrates strong viability, with an internal rate of return (IRR) of 53% and a payback period of just 12 months, largely due to the Section 12B government tax incentive. The cumulative savings are estimated to exceed R164-million over the plant’s lifespan, making it a highly cost-effective renewable-energy investment. The system is a purely on-grid configuration, featuring 1 706 solar panels integrated with seven on-grid inverters. In its first year of operation, the system is projected to generate slightly over 1.6GWh of electricity. This equates to an average daily generation of approximately 4.38MWh, a figure that aligns closely with expectations for a solar installation of this scale in regions with high solar irradiance

“The solar power plant is projected to deliver monthly electricity savings in excess of 50-60% over its lifetime, contributing to both environmental and financial benefits. The service life of the solar station is more than 40 years,” reports Head of Sales Neosun South Africa, Jeanine Jackson.

Low Earth Orbit is a rural-connectivity solution

Paratus South Africa, an official distributer of Eutelsat OneWeb's Low Earth Orbit (LEO), has installed the system for Tantum IT that has markedly improved connectivity for the IT service provider’s clients. Tantum IT specialises in remote IT management, cloud services and secure data handling for various industries, particularly those situated in remote and high-demand environments. The LEO service that Paratus South Africa has now provided and installed has been a game changer for Tantum IT’s business, enhancing operational efficiency and improving clients’ satisfaction.

“For businesses and industries operating in remote areas, traditional connectivity solutions often fall short in providing the reliability and speed needed for daily operations,” remarks Kallie Carlsen, Managing Director of Paratus South Africa. At a resort at Doornkop, pictured, users could access shared drives without issues, complete tasks quickly and maintain stable VPN connections. Tests conducted confirmed other benefits of the LEO solution, including smooth operation of email servers, the Oracle Finance system and successful video conferencing sessions. Users experienced no disconnections or slowdowns and tasks like uploading photos and streaming content were completed efficiently.

Welcome to 2025: a message from SACCI

Looking ahead to a successful year.

As we enter a promising new year, the South African Chamber of Commerce and Industry (SACCI) sends heartfelt greetings and best wishes for a prosperous 2025 to all our members and stakeholders. Your unwavering support and commitment have been crucial in driving our mission forward and we are sincerely grateful.

Strengthening diplomatic and economic ties

In our ongoing efforts to foster economic growth and international collaboration, SACCI has been actively engaging with various embassies in South Africa. These partnerships are aimed at strengthening diplomatic ties and building meaningful connections with international chambers of commerce. Through these engagements, we have hosted and met with numerous delegations, creating new trade and investment opportunities for our members.

B20 Advisory Council

We are delighted to announce that Advocate Mtho Xulu, President of the South African Chamber of Commerce and Industry, has been appointed to the prestigious B20 Advisory Council. This role presents a remarkable opportunity to shape global economic policies and amplify South Africa’s voice on the international stage, marking a historic moment for both our nation and the continent.

The B20, the official business engagement forum of the G20, serves as a vital platform for influencing global policy and driving sustainable economic growth. In 2025, South Africa will host the G20 and its associated forums for the first time, placing Africa at the heart of critical global economic and social discussions under the theme “Inclusive Growth and Prosperity through Global Cooperation”.

As a member of the B20 Advisory Council, Adv Xulu will:

• Guide strategic direction: offer high-level counsel on the priorities and focus areas of B20 South Africa.

• Participate in collaborative forums: Engage in regular (every six to eight weeks) meetings with fellow BAC members to review progress, share insights and contribute to key decisions shaping the B20 agenda.

• Amplify B20’s vision: Serve as an ambassador for B20 South Africa, promoting its objectives and outcomes within our networks.

• Advocate for policy recommendations: Support the advocacy of outcomes from B20 task forces and initiatives within SACCI networks.

SACCI will share further updates on B20 engagements, including the official launch in Cape Town and key milestones leading to the B20 South Africa Summit.

We are proud of Adv Xulu’s appointment and confident in his leadership to ensure South Africa’s active and impactful participation in this global initiative.

Looking ahead to a successful year

As we progress through 2025, SACCI remains dedicated to advocating for the interests of our members and the broader business community. We are excited about the opportunities that lie ahead and are committed to fostering an environment that supports business growth and innovation.

Let us face the challenges and opportunities of this new year with optimism and determination. We look forward to your continued support and active involvement as we strive to achieve our collective goals.

Contact

If you are interested in reaching out to SACCI, please visit our website at www.sacci.org.za Facebook: https://www.facebook.com/SACCIza Tel: 011 446 3800

SACCI President Advocate Mtho Xulu, second right, has been appointed to the prestigious B20 Advisory Council. The B20 is the official business engagement forum of the G20.

OPERATION PLAN 2025

THEME: Creating a Trade, Investment, and Transformation Ready Province

Limpopo Chamber of Commerce and Industry

The Limpopo Chamber of Commerce and Industry is a provincial representative body for the business community in Limpopo. Its consists of 22 local chambers in each of the municipalities in Limpopo, five district chambers and 21 sectoral forums defined in line with the SETA definition of a sector.

Networking is powerful. Join 1200+ BUSINESSES to your network peers. We will connect you with fellow investors and customers

TTake advantage of the “FREE” publicity we offer: website, print ads, radio, news stories and more. We are here to PROMOTE YOUR BUSINESS.

he LCCI is led by its President who is also its CEO, Albert Jeleni, with his team members who are the heads of the district chambers and some heads of local chambers and/ or sector forums.

We recommend our INVESTORS FIRST and provide information to thousands of people each year.

The LCCI’s purpose is to represent the business community in engaging with government, civil society and the economic sector in a single united voice. It advocates for a conducive environment for business to flourish, identify and bring to life catalytic projects to fuel the economy and also to offer support for businesses to grow.

We are part of the government economic development programs in LIMPOPO. Grow your business and our community through our economic development ecosystem partners.

In 2023/24 the LCCI focused on establishing relationships both nationally and internationally to the extent of signing an MOU with a chamber in Pakistan, a process that is being pursued with other countries and will continue in 2025. LCCI has hosted or engaged the delegates from India, Zimbabwe, Indonesia, Italy, Dubai, Chad, Zambia, US, China, UK and Botswana, among others, to establish bilateral trade relationships, with a focus on signing twinning agreements.

We are the VOICE OF BUSINESS for you, so you can focus on your business. We advocate on your behalf through the chamber lobbying efforts.

Benjamin Franklin supposedly once said, “If you fail to plan, you are planning to fail.”

• Fixed flea market: to include a one-stop SMME support centre in each municipality

• Market days: known as Small Business Thursdays

VISION

• Funfairs: on Saturdays, with heritage and sports events to run as tournaments

Membership and partnerships

The Chamber is one of the most respected and credible business organisations. STRENGTHENS CONSUMER AWARENESS of your business as well as increase the likeliness of being sought out for goods and services in future

The LCCI has four main aims for 2025, which are to:

Major events in the past year included:

To be recognized as trailblazers for locally owned and globally aligned local economy, and a united voice of business in the Limpopo Province and beyond.

MISSION

• Job Creation Indaba

1) Unite the business community around trade, sports & heritage economy,

• SMMEs and co-operatives roadshow

2) Establish a business chamber building/office,

• A seminar and gala dinner on doing business with India

• A symposium and gala dinner

The LCCI’s activities are run through its member companies, avoiding competing with the private sector it represents. In this manner, the LCCI creates opportunities for the business community. The membership has been structured to accommodate SMMEs and sole traders, with fees starting from R300 annually and also accommodating large corporates and growing SMMEs with partnership packages starting from R15 000 annually. The partnership packages are not just membership subscriptions, but genuine partnerships with guaranteed returns on investment as the members are provided with opportunities to market and grow their business, and to carry out projects identified by the chamber.

Contact details

3) Strengthen chamber governance and interaction with ecosystem partners, 4) Establish international linkages. These objectives shall be achieved through the programmed activities herein.

In addition, SMMEs were supported with an internship programme and managers within SMMEs were assisted to participate in international development programmes.

Future plans

Contacts: 065 924 3925 / 076 773 7460

President@limpopochamber.org

The major plans for 2025/26 include establishing chamber offices in Limpopo, which will consist of conference and meeting rooms, a networking lounge and a training centre. Affiliation with the South African Chamber of Commerce and Industry (SACCI) is a historic step for the province.

The LCCI is running the Adopt-a-School drive in partnership with social partners to uplift education by adopting struggling schools. Under the theme of uniting the business community around trade, sports and the heritage economy, a series of trade fairs and sports tournaments will be held as follows:

Mr Albert Jeleni, President and CEO Tel: 065 924 3925

Email: president@limpopochamber.org Alternate: info@limpopochamber.org

The LCCI is driven by the Concept of Local Economic Development, and our mission is to ensure that the Local economy can thrive, be quantified, locally owned and globally aligned, and therefore we speak honestly, fearlessly, and with authority for business in our region.

VALUES

Empowering SMMEs

The Absa-SACCI Limpopo SMME Summit was held at the Euphoria Golf and Lifestyle Estate, Limpopo, on 18 September 2024.

The Absa-SACCI Limpopo SMME Summit, a collaborative initiative by Absa and SACCI, served as an invigorating platform designed to catalyse growth and unlock opportunities for small, medium and micro-sized enterprises (SMMEs) across the province of Limpopo.

Rooted in a commitment to empowerment, this event offered an extensive range of resources and support mechanisms, all aimed at nurturing entrepreneurial innovation and fostering sustainable business success.

Attendees were treated to a wealth of insights from industry leaders and experts who shared strategies to help SMMEs excel in today’s competitive landscape. The summit facilitated invaluable connections, allowing participants to engage with potential partners, investors and mentors, thereby igniting collaboration and propelling growth.

Interactive sessions delved into practical advice covering diverse facets of business management, from financial acumen to cutting-edge marketing techniques. Participants left equipped with a toolkit of resources designed to bolster their business development and sustainability efforts.

The summit was a remarkable success, underscoring the dedication of Absa and SACCI to uplift SMMEs and significantly contribute to South Africa’s economic landscape.

The programme

The day began with a warm welcome from Gabriel Thumelo Mogashoa, MC for the day, who set the tone for an engaging event.

Kgalaletso Tlhoaele, Executive Sectors: Enterprise Development, Absa, highlighted the partnerships that exist between SACCI and Absa, noting that fruitful collaborations had been undertaken to support SMMEs. On the same topic, SACCI Chamber Services Manager, Danny Vengedasamy, further explored the partnership's benefits for the business community in general.

The Director for Enterprise Development, Limpopo Economic Development Environment and Tourism (LEDET), Thinamaano Lusunzi, delivered the keynote address that anchored the summit. The topic of the address was “Insights into the economic landscape and opportunities for SMMEs in Limpopo”.

Lebuhang Monama of Absa SME Finance Solutions introduced tailored financial solutions designed for SMEs, which was followed by practical guidance on utilising commercial asset finance (CAF) offerings. Themba Madonsela, CAF Manager, gave expert advice on leveraging CAF offerings to enhance growth and operational efficiency in business.

Mashweu Matsiela, IDC Regional Manager: Limpopo, was the next speaker at the podium. His topic was “Rural and township economy opportunities and IDC funding solutions” wherein he discussed funding opportunities for rural and township enterprises.

After a question-and-answer session where participants could seek clarity and share insights, Douglas Sebothoma, SARS Limpopo, gave an outline to understanding compliance requirements and their importance for SMEs.

“Market access: challenges and opportunities” was the subject of the next presentation, by Tiro Matjiu, Yarena MD. The landscape for small businesses with regard to market access was the focus of the talk.

Compliance was the focus of the intervention of Ofentse Shakung, who is in charge of Innovation and Collaboration at the Companies and Intellectual Property Commission (CIPC). He offered concrete guidance on navigating compliance with the CIPC.

“Navigating the path of agro-processing entrepreneurship” was presented by Mologadi Madisha, who gave insights into opportunities and strategies in agro-processing.

After more questions and answers, several breakaway sessions were held, as follows:

• Absa funding and CAF offerings

• Compliance with SARS and CIPC

• Access to market challenges, opportunities in township and rural economy development and agro-processing

SMME competition

Details were given of a pitching competition where the prize involves Business Development Support, which was open to all participants.

Looking

ahead

Closing remarks and a recap of the day was given by Monnie Mongwe, Head: SME Business Gauteng North and Limpopo at Absa, who reflected on the day’s discussions and key takeaways.

Among the recommendations that followed the successful hosting of the event was that a larger venue would be needed to host future events in the province of Limpopo, given the excellent level of support for the event in 2024.

Future summits will have enhanced live-stream capabilities with more cameras and rigged sound. Beyond these logistical and technical improvements, the nature of the agenda for future events will also be amended, with market access and market opportunities being incorporated, thus giving SMME owners even more practical benefits to attending.

The bank will also consider having a customer support desk on site. Having someone to talk to about immediate issues arising from the banking experience will not only offer a useful service but also help to build customer relationships.

Principles of success

Building a business that lasts 120 years requires a combination of adaptability, resilience and a deep understanding of market dynamics. Here are Varsha’s key principles to achieve such long-term success:

• Build a strong foundation.

• Establish a clear mission and strong core values that can guide decision-making across generations. Plan with a multi-generational mindset rather than short-term gains and maintain integrity and strong governance to build trust.

• Adapt to change. Foster a culture of learning to keep evolving with market trends and consistently adapt to changing customer needs and expectations.

• Build a resilient brand.

• Ensure your products and services maintain high standards over time. Develop strong relationships with customers that pass through generations.

• Nurture human capital.

• Treat employees as long-term partners, not just workers. Prepare and mentor future leaders early and foster a culture that retains talent and promotes growth.

• Balance tradition and innovation.

• Respect legacy. Preserve what makes the company unique while modernising where necessary.

• Leverage technology and digital transformation.

• Implement modern technology without losing sight of core business principles and use analytics and AI to optimise operations and customer engagement.

Varsha Vala, Principal Officer of Medihelp.

120 years of excellence in healthcare cover

Medihelp Medical Scheme celebrates a major milestone.

The year 2025 marks a significant milestone in the remarkable history of Medihelp Medical Scheme as the medical aid provider proudly celebrates 120 years of service in the industry. As South Africa’s oldest medical scheme, Medihelp has achieved unparalleled longevity, demonstrating resilience and a commitment to helping generations of South Africans access quality healthcare.

Founded in 1905, Medihelp’s rich legacy is built on a foundation of adapting to the everchanging healthcare landscape while remaining steadfast in its core purpose: to support members in taking care of their health and mental well-being. This enduring mission has positioned Medihelp as a leader in providing comprehensive medical cover that evolves with the needs and values of its members.

“Reaching 120 years is an extraordinary achievement that reflects the trust and loyalty of our members and the dedication of our teams,” says Varsha Vala, Principal Officer of Medihelp. “Our longevity is a testament to our ability to adapt to the times while remaining true to our core values. We are proud to have been playing a pivotal role in the lives of South Africans for more than a century.”

These include wellness programmes, community outreach and educational campaigns aimed at empowering South Africans to be the custodian of their health and well-being.

Throughout its history, Medihelp has continuously evolved its offerings to meet the demands of a dynamic healthcare environment. From its early days of providing basic medical cover to today’s comprehensive, tailored solutions, Medihelp has consistently placed the well-being of its members at the forefront of its operations.

Holistic healthcare

In recent years, Medihelp has focused on promoting mental wellbeing alongside physical health, recognising the importance of holistic healthcare. This approach has resonated with modern South Africans who prioritise their overall wellness and strive to live life to the fullest.

“Our members are at the heart of everything we do,” Vala continues. “We remain committed to being their trusted healthcare partner, providing peace of mind and confidence that their healthcare cover is in capable hands.”

As part of the 120-year celebrations, Medihelp will launch various initiatives promoting healthy living and mental well-being.

Medihelp’s ongoing success is rooted in its ability to stay relevant and innovative while maintaining its core purpose. Its focus on value-driven, member-centric solutions has allowed the Scheme to successfully navigate various challenges over the years, including regulatory changes and the shifting healthcare demands of the population.

Looking to the future, Medihelp remains steadfast in its commitment to funding access to quality healthcare that aligns with its members’ changing needs. Medihelp Medical Scheme’s 120-year milestone is not only a celebration of its past achievements but also a reaffirmation of its dedication to supporting South Africans on their health journeys for generations to come.

About Medihelp Medical Scheme

Medihelp Medical Scheme is one of the five largest open medical schemes in South Africa and also its oldest, established in 1905. With a 120-year legacy, Medihelp continues to provide comprehensive medical aid solutions that prioritise the physical and mental well-being of its members. By offering accessible and sustainable medical aid plans, the Scheme is committed to empowering South Africans to live healthier, more fulfilling lives.

Tariffs need to make business sense

Thembani Marhanele is the chair of the Tariffs and Wheeling Workgroup of the South African Independent Power Producers Association (SAIPPA). In that capacity, and as founder and CEO of Jeka Energy, he deals daily with issues central to the future of South Africa’s energy landscape. Opportunity spoke with him via an electronic connection made possible by electricity.

What is your background and how did you get into energy as a career?

I was in logistics as a mining service provider and I was introduced to Renewable Energy Technologies at the Mining Indaba in 2013. I studied Renewable Energy Project Development through the Renewables Academy (RENAC) in Germany where I received an International Certification in Renewable-Energy-Project Development in 2016. When I came back, I started a company called Jeka Resources (Jeka means light in Shona). Jeka Energy was established as a subsidiary and it has focussed on largescale project development since 2017. We have self-funded the development of a utility-scale 90MW project that will connect to a municipality’s distribution lines in Limpopo that is almost at financial close. We also do some smaller Commercial and Industrial (C&I) projects in South Africa. Our portfolio stands at about 20MW

combined: we design, build, own and operate Green Power Plants for our clients through power-purchase agreements (PPAs).

When you say a bit smaller are you talking about a supermarket roof?

Roof or ground-mounted solar installation from 50kWp to 2MW (megawatts). A small office installation could be 50kWp with battery storage. A commercial building or office block could be about 100kWp to 1MW. Also, the rooftop installations at shopping centres and malls ranges from 100kWp to 5MW. We are also developing utility-scale projects in Zambia, Zimbabwe and Botswana.

Is the business growing?

Yes, and we have also been growing in SADC.

Thembani Marhanele, the chair of the Tariffs and Wheeling Workgroup of SAIPPA.

How many utility-scale projects have you done or are you doing?

In South Africa, almost 350MW, with 100MW developed for municipalities (90MW in Polokwane and 10MW with Ekurhuleni).

The other 250MW projects are developed for private off-takers, being your large power users like mining houses and industry to conclude through PPAs with wheeling arrangements. They sometimes have challenges regarding land or space where they operate, limiting their ability to install large solar plants.

We are also co-developing projects in Zimbabwe (100MW), Zambia (150MW) and Botswana (5MW). We are looking into private PPAs, wherein wheeling power to private large power users becomes an everyday conversation

And so you have direct experience of that which you are talking about as the chairman of the SAIPPA working group?

Yes, we are engaging with Eskom and other stakeholders in trying to design financial models that make business sense. The tariff must make business sense to the developer and benefit the client, including the cost implications of wheeling power through the Eskom grid. We already have success stories of signed wheeling agreements in South Africa which shows progress in the kind of engagements that shape those conversations.

How have you found the wheeling environment?

In the beginning it was very difficult, especially for clients that are behind the municipal meter instead of Eskom. The success (even though it took longer than expected) of the Bio2wattBMW-Tshwane project serves as a success story. The wheeling environment for clients behind the Eskom meter was also very challenging as most of the large power users (as potential

off-takers) currently have very low tariffs. The benefits that come with renewable energy as an energy source also rely on policy adoptions that include tax incentives.

Please expand on the business sense issue.

The client could be paying 60 cents per kilowatt to Eskom, for example. If I then want to sell that client green power through a wheeling agreement, the simulated cost savings (ideally below the current tariff that they are paying) and tax incentives should make financial sense and add value to our clients. We also look into socio-economic strategies like localisation and direct community involvement within the value chain of delivering those projects to foster social-cohesion.

Does SAIPPA have direct communication with Eskom?

SAIPPA has a multi-pronged approach. We interrogate the NERSA processes and we have working groups that interact with different stakeholders. As an industry body we serve as the platform where IPPs, government, private sector, professionals and communities at large can engage and contribute to a zerocarbon future. Our membership is so diverse that all stakeholders come into one conversation and try to find solutions. Our platforms are also used in sharing the feedback from all our engagement with stakeholders to benefit those that were not part of those conversations.

Are more power producers wanting to use the wheeling model?

Definitely. A key aspect is space availability. Roofs that were designed long ago do not have the structural integrity to carry the weight of solar panels for power to be produced from their

roof for self-consumption. For large power users, how can you access green power cheaper without having to sacrifice land that is earmarked for future operations? In those cases, the other option is to negotiate a wheeling agreement where the solar installation is on land available closer to grid connection points.

Are your interventions being heard at policy level?

Yes, definitely. The beauty about it is that there are a lot of stakeholders besides SAIPPA that are advancing technologyspecific policies like SAPVIA (solar PV), SAWEA (wind), etc. SAIPPA is an overarching association and we are not technology based. We are looking at the industry as a whole and engaging with all industry stakeholders and players.

There has been a lot of improvement in terms of the industry coming together and the conversations on different platforms created to advance and support our country strategies. The alignment of industry players with some of the stakeholders like potential funders is energising.

Do you believe the renewable energy sector is on the up and up?

Definitely. A good thing is that most of the business cases in terms of renewable energy for C&I and utility projects were not based on loadshedding as they would have been for households. Businesses need uninterrupted power solutions designed to make sure that they can continue on a daily basis without further interruptions to operations due to power failures. The daily costs

of loadshedding on our economy was measured and published. Power interruptions costs a lot of money to business.

How important is it for the renewable energy sector that Eskom completes its split into three divisions?

The debundling of Eskom into the three divisions is another one of the positive contributions, as the new focus on strengthening grid access also advances the green-energy business case. It is critical. We need a division that’s focused on transmission, strongly focussed. All the assets that Eskom owns need to be used optimally.

Is there scope to grow the sector?

Government, industry, communities and all other stakeholders have created multiple platforms that are advancing conversations and strategies for us as a country to achieve our country sustainability goals. The sector is also growing with advancement of other technologies for power generation like hydrogen. Government support in policies that include social-cohesion strategies and localisation are also contributing positively to the sector growing that should be inclusive.

When you talk to a smaller service provider who is just installing small solar-power PV rooftop to households, they have no idea about opportunities to sell power through a wheeling engagement. They are not building business cases that allow them to grow, but solving that one problem, “Loadshedding”. As an Association we have a duty to inform and foster conversations that will elevate such energy businesses to eventually become IPPs.

PHOTO: Casey Horner

Developing a market for buying electrons

To better understand the concept of “wheeling”, Opportunity sat down with the Chairman of the South African Independent Power Producers Association (SAIPPA), Brian Day, on the sidelines of the Africa Renewable Investment Summit (ARIS) in November 2024.

What is wheeling?

An example is power being generated in the Eastern Cape by an independent power producer (IPP) and power being used by a customer in Mpumalanga. When your customer and your generator are both connected directly to Eskom, you have a wheeling arrangement.

But it is not literally that same power?

It’s different electrons and it’s a book entry. It’s a commercial arrangement and there are loss factors based on the relative geographies of the two to be taken into account.

The customer has an electricity supply agreement with Eskom and the generator has a connection and use-of-system agreement with Eskom. All the electricity comes through the Eskom meter but some of that came from the IPP. The credit on the customer’s bill is enough to pay the power-purchase agreement (PPA) to the generator.

And wheeling is catching on?

Slowly, and limited to big customers. In the future, in the same way you buy pencils at the corner shop you would buy electrons. Such a market at the wholesale level is being developed, while the retail market is some way off. Developing a market for power is where we are going. Mulilo has reached financial close on two Eastern Cape projects for 260MW total for a combined off-take by Sasol and Air Liquide for their Secunda operations.

Sasol needs a lot of power for its

Sasol was at the forefront of wheeling, much of which was initially done between their facilities in Sasolburg and Secunda. Eskom designed wheeling largely for Sasol because it is a massive prosumer, both a consumer and a producer of power. It’s an intriguing concept in the electricity space; other companies like [timber and dissolving pulp producer] SAPPI are prosumers because they have excess heat, which is excess energy and can be converted to electricity.

What is an aggregator?

A company trying to trade electricity.

Are we moving towards having a seamless market for such trading?

We are moving there now more than ever before and in the last year there has been significant progress.

Are there obstacles?

The Electricity Regulation Amendment Act was promulgated on 1 January 2024, with some parts postponed, despite the complaints of the South African Local Government Association (SALGA) and municipalities. Municipalities have a distribution licence and the word in the legislation and regulations is “supply”, but that is distinct from a trading licence which is the buying and selling: it is like running a fleet of trucks on somebody else’s freeway. Some other people need to do their job too, most notably the National Energy Regulator of South Africa (NERSA).

Can municipalities protect themselves from losing future revenue by building a solar farm?

A municipality can do three things: they can procure from an IPP who builds for them, they can establish new generators themselves or they can establish wheeling frameworks so that third parties establish new generators and sell to other third parties where they don’t have the onerous task of being the balance sheet. By wheeling, they are making their “road” available to willing people.

But does the road belong to the city?

Does it not belong to Eskom?

It belongs to Eskom only up to a point, but then it gets to a point where the grid belongs to the city and that’s the problem. As I said about the big Sasol wheeling projects, if both the customer and the generator are connected directly to Eskom then it works. If one or other or both are connected to a municipal grid which in turn is connected to Eskom, you then have to make these arrangements with both the entities. And that’s when it gets more difficult.

For information on the South African Independent Power Producers Association: www.saippa.org.za

About BUSA

Business Unity South Africa (BUSA) is committed to empowering businesses to contribute positively to South Africa's economic growth and transformation objectives, fostering an environment where businesses of all sizes can thrive, expand, and remain competitive. As the leading business organization, representing over 90% of South African businesses both domestically and globally, BUSA plays a crucial role in advocating for energy and environmental policies that promote inclusive business growth.

BUSA made significant representations on behalf of its members during 2024. Below is a recap of key interventions:

Department of Trade, Industry, and Competition (DTIC)

BUSA's collaboration with the Department of Trade Industry and Competition (DTIC) on the Energy One Stop Shop (EOSS) aims to streamline regulatory approvals and reduce barriers to energy project development. This collaborative effort has removed bottlenecks associated with energy streaming applications. In 2024 and continuing into 2025, this initiative strives to fast-track applications for Independent Power Producer (IPP) energy projects across all nine provinces, projects outside the various Bid Windows including those with Strategic Infrastructure Programme status. The intention is to provide support for small-scale embedded generation (SSEG) power projects under the recently promulgated Electricity Regulations Act Schedule 2 to enhance energy security and to support efforts to decarbonise South Africa's economy.

Furthermore, BUSA is contributing towards the development of the Energy Security Bill The intention is to make the EOSS the only place to go for all approvals, permits, and authorizations for energy projects. This change will reduce red tape and encourage more investment in energy.

Department of Forestry, Fisheries, and the Environment ( DFFE)

BUSA continues to engage with DFFE matters relating to the Climate Change Act. BUSA's input helps to ensure that regulatory frameworks are practical and facilitate business compliance, crucial as South Africa steps up climate action in line with international expectations.

Department of Water and Sanitation (DWS)

BUSA continues its engagement with DWS to address key water issues affecting business and consumers alike including water shedding.

Department of Mineral Resources and Energy (DMRE) and Ministry of Energy and Electricity (MoE)

BUSA will continue its engagement with the DMRE and MoE to address priority issues like grid capacity, regulator performance, integrated planning, pricing policy, expansion, and diversified energy generation which reflects the urgent need to modernize South Africa's electricity infrastructure.

Stakeholder Engagement (Including International Cooperation)

As the voice of business in South Africa, BUSA engages with both local and international organizations to ensure a stance for its represented members. Below are some of the ongoing engagements with various organizations.

Re-establishing Engage ments with the National Treasury on Carbon Tax Regulations

BUSA maintains an active dialogue with the National Treasury on carbon tax regulations. High-level political support is necessary to formalize these interactions, but BUSA preparatory work positions it to respond proactively to upcoming tax proposals, ensuring they are structured in a way that encourages sustainable business transitions.

Gas Supply Issue (July 2026)

South Africa faces an impending gas supply cliff as the largest supplier of gas plans to reduce gas supply by 2026. BUSA coordinated a private sector response, which has resulted in various interventions such as the appointment of a private-sector aggregator and a Memorandum of Understanding between Eskom and Sasol to expedite LNG imports that seek to safeguard industrial operations that rely on gas. These initiatives highlight BUSA's role in contributing to addressing critical energy security issues, with implications for both industrial resilience and the energy transition.

Waste Amendment Bill Waste Definition

BUSA has engaged with the Department of Forestry, Fisheries, and the Environment to address regulatory issues surrounding waste definitions in the amendment Bill, advocating for clarity that supports circular economy principles without excessive administrative burden. This engagement ensures that regulatory developments align with business sustainability goals.

Engagement with N ERSA on Electricity Pricing

BUSA's engagement with the National Energy Regulator of South Africa (NERSA) on the Electricity Price Determination Methodology has emphasized the importance of cost transparency and fairness, leading to the draft methodology being reversed as it was inappropriate and impractical. Our work on the affordability subsidy charge also underscores BUSA's commitment to ensuring that electricity pricing reflects both business viability and social equity, which is now a ministerial priority.

United Nations Framework Convention on Climate Change UNFCCC COP29

At the COP29 held in Baku, Azerbaijan, BUSA represented South African business interests, contributing to the country's position on emissions reduction commitments. Our role encourages business engagement in climate negotiations, strengthening the alignment between national climate goals and industry interests.

During the year, BUSA also engaged with the Danish Industry and Clean Air Fund to collaborate on initiatives relating to the just transition and air quality which will be implemented in the new year.

To find out more please go to www.busa.org.za

The critical role of legal reforms to unlock SA’s wind energy future

Lena Chirwa, board member at the South African Wind Energy Association (SAWEA) and Head of Legal & Corporate Affairs: Sub-Saharan Africa at Enel Green Power, explains that as the wind-energy market in South Africa matures, the complexities of project development, grid connections and regulatory compliance have increased significantly.

As South Africa continues its journey toward a sustainable energy future, wind energy has emerged as a crucial element of the country’s renewable energy mix. With its rich wind resources and increasing demand for clean energy, the sector is well-positioned to contribute significantly to the nation’s energy goals. Despite this promising outlook, several significant challenges could impede its growth.

The complexities of project development, grid connections and regulatory compliance have increased significantly as the domestic market has matured.

Says Chirwa, “Given the many challenges, the role of commercial law has become crucial in advancing the sector and highlighting

the urgent need for legal reforms. This has transformed commercial law into an indispensable tool for navigating the complex legal and regulatory landscape of renewable energy projects.”

One of the primary hurdles is the regulatory environment, where existing regulations are often complex and outdated, leading to administrative bottlenecks that impede project development. Simplifying and modernising these regulations is essential for fostering a more supportive environment that promotes innovation and attracts investment.

Financial constraints also pose a significant challenge, with the perception of the high financial risks associated with wind-energy projects making it difficult to secure funding.

PHOTO: Enel Green Power

The thickets of the complex legal and regulatory landscape of renewable energy are redefining commercial law in South Africa.

“To attract both local and international investors, it is essential to have legal reforms that clarify risk management strategies and provide financial incentives. Such reforms can help mitigate perceived risks and accelerate the deployment of wind-energy projects,” adds Chirwa.

Furthermore, land acquisition for wind-farm projects presents another critical obstacle. The process can be lengthy and contentious, involving multiple approvals and potential disputes that cause delays. Here, effective legal frameworks are needed to streamline land acquisition processes, reduce delays and resolve conflicts efficiently, facilitating quicker project execution.

Additionally, integrating wind energy into South Africa’s national grid involves technical and regulatory challenges. Developing robust legal frameworks to support seamless grid connections and infrastructure investments is essential for ensuring that wind power can be harnessed and distributed effectively across the country.

Critical role for commercial law

The role of commercial law is becoming increasingly critical in overcoming the challenges faced by the renewable-energy sector. As the sector experiences rapid growth, commercial law has had to adapt, demanding a more in-depth engagement with technical aspects and a stronger grasp of regulatory policies. This transformation underscores the importance of legal expertise in navigating the complexities of renewable-energy projects.

Commercial lawyers play a critical role in navigating these complexities, with Chirwa adding that she has adapted to engage more deeply with the technical aspects of a project and garnered a deeper understanding of the regulatory policies related to the industry.

“As commercial lawyers, our involvement in contractual negotiations is essential for addressing risk-allocation issues and streamlining transaction processes,” she says. “By managing these aspects effectively, we contribute significantly to the successful implementation of renewable-energy projects.”

Looking at global examples, Germany in particular, underscores the argument for legal reforms in South Africa's wind-energy sector. Here, regulatory changes, such as streamlined permitting processes and clear legal frameworks, have played a pivotal role in positioning the country as a global leader in wind energy.

Drawing parallels to these successes can highlight the potential impact of similar reforms in South Africa, making a compelling case for how targeted legal changes could accelerate the country's adoption of renewable energy.

To fully realise the transformative potential of wind energy in South Africa, it is not enough to merely identify the challenges. Action is required, and legal reforms that streamline regulations, mitigate financial risks and simplify land-acquisition processes will unlock new opportunities for innovation and growth.

The future of South Africa's renewable-energy sector depends on the willingness of stakeholders, government, investors and legal professionals alike, to adapt and collaborate. By embracing these changes, South Africa can not only meet its energy goals,

but position itself as a leader in the global shift towards a sustainable future.

Reference: Germany boosts renewables with “biggest energy policy reform in decades” [Internet]. Clean Energy Wire. 2022 [cited 2024 Aug 29]. Available from: https://www.cleanenergywire. org/news/germany-boosts-renewables-biggest-energy-policyreform-decades

About SAWEA

Founded in 1998, the South African Wind Energy Association (SAWEA) stands as a leading advocate for the wind-energy sector in South Africa. As a non-profit organisation, SAWEA promotes the advancement of sustainable energy practices, policies and investment in South Africa, while advocating for socio-economic development and energy transformation through wind power.

SAWEA is dedicated to fulfilling its purpose as a dynamic force within the wind industry with a primary focus on supporting its members and advancing the integration of wind energy onto the grid. Central to SAWEA's strategic priorities is the active engagement of members on industry matters and the strategic aligning with stakeholders for focused collaboration to foster a just energy transition in South Africa.

To learn more, visit https://sawea.org.za/

Lena Chirwa, Enel Green Power Head of Legal & Corporate Affairs and South African Wind Energy Association (SAWEA) board member.

Be proactive in handling legal disputes

Contracting can be an extreme sport, says Simba Takuva, the Director of Takuva Attorneys, and it will pay business owners to hire seasoned professionals to manage and oversee legal risks.

As a business owner or executive, I spend an inordinate amount of time managing legal risks for my organisation. How can I benefit from your services?

It is inefficient for business owners and executives to spend significant time managing and overseeing legal risks. While this may seem cost-effective in the early stages, you risk losing credibility and it diverts your time and attention from focusing on business-growth activities. It is more prudent and efficient to appoint experienced attorneys to manage legal risks, allowing your business to realise immediate value, both financially and strategically.

Our organisation relies on a non-legal professional to negotiate, review and draft corporate and commercial transaction agreements. How risky is this?

Transaction agreements must be negotiated and drafted in the best interests of and to protect the business. Some entrepreneurs and executives either take a do-it-yourself approach to negotiating transaction agreements or delegate it to non-legal professionals. Even if the functionaries are highperforming employees with an intimate knowledge of the strategic objectives of the business, contracting in Africa can be

an extreme sport. If they are not familiar or up to date with the nuances of contract negotiation and drafting, the company may find itself bound to onerous contractual terms that negatively impact on the business in the long term.

How can our organisation ensure that it meets its regulatory and contractual obligations on an ongoing basis?

Regulatory non-compliance poses a huge risk in possible fines, penalties, business disruption and reputational damage. This is more so in Africa, where the complex web of laws, rules and regulations makes it difficult to understand and adhere to the rules. Organisations must have a compliance plan to benefit and protect their business, starting with a comprehensive assessment of the regulatory environment, identifying their specific compliance obligations and aligning their policies and procedures to these requirements.

It is also helpful to engage an independent service provider to conduct regular and/or ad hoc compliance and due-diligence assurance to verify that the compliance procedures and policies are appropriately implemented and followed.

What measures can we implement to minimise the ever-impending risk of litigious disputes and the high legal costs attendant on them?

Lawsuits are probably the biggest push factor for most businesses to incur the cost of external legal counsel as it is an inevitable need once the dispute becomes litigious. Businesses that have a proactive approach to handling legal disputes can save time and money and build a strong foundation for growth. Corporate litigation can largely be avoided when business owners and executives take time to understand contractual and compliance risks and factor them into their risk-management strategy to minimise the impact of those risks materialising.

Do we need to have an intellectual property strategy to safeguard our brand, products and/or technology?

The value of intellectual property is often underestimated by businesses in Africa. This leads to a risk of copying or other infringements which dilute the value of the business’s unique brand, distinctive product or proprietary technology. This ultimately has a detrimental impact on your long-term success. Business leaders must develop a matrix to utilise trademarks, patents and copyright protections to shelter their business from potential IP rights infringements.

Simba Takuva, Director Takuva Attorneys.

Meet your growth experts

Takuva Attorneys works closely with corporates, investors and entrepreneurs to efficiently manage legal risks to our clients' organic and acquisitive growth strategies.

Takuva Attorneys Inc. is a boutique legal practice which provides expert legal and policy advisory services to corporations at all stages of growth. We have a track record of achieving favourable outcomes for our clients in complex transactions and disputes within Africa’s diverse corporate, commercial and compliance terrain.

Our team

Simba Takuva, Director: Simba has successfully advised businesses at different levels of growth on governance structures, corporate and commercial transactions, regulatory compliance and commercial disputes.

Jordin Tribe, Associate: An admitted attorney with experience in company secretarial, labour law, contract management and regulatory compliance.

Kuda Bandama, Policy Analyst: A policy expert with over seven years of experience specialising in policy and political-risk analysis, election support and programme operations within the SADC, EAC and ECOWAS regions.

Ranga Takuva, Office Manager: An administrative consultant with expertise in office administration, team building, marketing and events and social media management.

Our services

We tailor our services to each client’s needs, based on their strategic outcomes, operations and regulatory environment. Foundation

• Company Formation

• Founders and Shareholders Agreements

• Governance Frameworks

• Policy Advisory

• Compliance Assurance

• Contract Management Growth

• Mergers and Acquisitions

• Joint Ventures

• Franchise Agreements

• Cross-border Trade and Finance

• Capital Raising (Debt and Equity)

• Corporate Restructuring

Exit

• Secondary Capital Raising

• Management Buyouts

• Succession Planning

• Sale of Business/Shares

• Private Placements

• Initial Public Offerings

Key differentiators

We are a small, high-performance team with a track record of delivering quality and tailored legal advice in urgent and highpressure situations.

We regularly generate informed insights into multi-jurisdictional policy and regulation in dynamic sectors. Our proactive approach reduces the time and cost of closing transactions, operational disruptions and the risk of future liabilities.

Track record

Sturdy operators

Our client portfolio includes sturdy businesses such as Independent Metal Distributors, Frusina Holdings, Eve Onboard, JBJ Transport and Thumeza Enterprises.

Problem solvers

We have successfully provided cost-effective legal advisory services to our clients on complex matters, including regional financing, corporate restructuring, share purchase transactions and multi-jurisdictional dispute resolution.

Service promise

To learn and understand your business intimately and become a trusted advisor and strategic partner. To add immediate financial value by freeing up management time, allowing you to focus on business growth while we manage and mitigate the legal risks.

To provide service level flexibility and choice, not only regarding the number of hours but also to each client’s operating and systems preferences. To implement safeguards and resources to enable clients to proactively manage the legal risks attendant on their strategy, operations transactions and projects.

Powering up: South Africa's role in the AGI revolution

By Mandy Hattingh, Legal Practitioner, NSDV.

Artificial Intelligence (AI) has found its way into general conversation after the emergence of large-language models like ChatGPT, capable of generating text on a near-infinite range of topics. However, the discussion is increasingly turning to the search for Artificial General Intelligence (AGI), which, once discovered, could entirely change the game.

Narrow AI is trained to perform a specialist function such as natural language understanding, playing chess or identifying spam. In contrast, AGI will resemble a genius polymath, able to tackle a wide range of challenges across any field. AGI is expected to revolutionise sectors such as healthcare, scientific research and automation. This automation could lead to increased productivity and efficiency but may also result in substantial job displacement. Naturally, AGI’s potential applications come with environmental, social and governance (ESG) considerations that must be addressed.

Before considering the ESG implications of AGI, it is worth noting that its discovery is currently constrained by three main factors: processing power, access to information and energy supply.

AGI requires vast amounts of computational resources (ie chips) to mimic human-level intelligence, far surpassing the capabilities of today’s AI models. In addition, training AI and AGI requires access to large, high-quality datasets. As humancreated data is a finite resource, AIs and AGIs may create

new knowledge autonomously to teach themselves – raising important questions about privacy, control and the implications of AI generating its own data.

However, none of this is possible without sufficient energy.

Training AI requires huge amounts of energy. Statistics published by OpenAI indicate that training ChatGPT-3 took 34 days and consumed approximately 1 248MWh of electricity during that time. By contrast, the next iteration, ChatGPT-4, took 100 days to train, consuming an estimated 50GWh of electricity. This amount of energy is roughly enough to power 17 000 South African homes for a year.

In simple terms, current models of AI typically train the programme (resulting in a knowledge cut-off date), review the programme, and then publish it to the general public for use. When an AI receives an instruction, it then generates a response based on the knowledge it acquired during training. The largest computational power and energy demand therefore occurs during training, although processing power and energy are required when instructions are fed to the AI. However, AI systems are now evolving towards an “always learning” phase, where they continuously update and refine their knowledge in real-time. The energy demand associated with their operation will thus increase and become sustained, as this shift requires constant computational processing. Continuous learning involves ongoing

data analysis, model adjustments and real-time decision-making, all of which consume significant computational power and electricity. When AGI emerges, this effect will be amplified. AGI's ability to understand, learn and apply knowledge across a wide range of tasks in a human-like manner will necessitate even more complex computations and perpetual data processing, further escalating electricity demand exponentially.

The inability of regions or nations to meet these electricity demands could limit access to AI and AGI technology to regions and entities with stable, affordable and increasingly green energy supplies. This will likely shape who can participate in the AI and AGI revolution, potentially reinforcing global and regional inequalities if not addressed equitably.

As AI becomes more prolific, more data centres will likely be constructed in South Africa both to train AI and to locally host AI software to reduce latency (the time delay between a user's instruction and the system's response). Consequently, both existing and future data centres in South Africa will need to be robust, secure and always online (and always powered), or we risk missing out on the competitive advantages associated with the use and development of AI and AGI.

Incentivise investment

To ensure South Africa benefits from the AI revolution, it must adopt a proactive approach.

The first and most critical step is to prioritise and incentivise investment in renewable energy. This will prevent the stalling of AI development in South Africa. Powering data centres with renewable energy, coupled with storage solutions like greenhydrogen fuel cells or batteries to address intermittency issues, has many benefits, including:

• reducing greenhouse gas emissions

• reducing longer-term operational costs, particularly in light of the recent proposed Eskom tariff increases for the next three years

• alleviating strain on the national grid and energy losses due to wheeling if renewable facilities are co-located with data centres

• enhancing competitiveness in the global economy where the source of energy (renewable vs fossil fuel) for data centres may attract or deter foreign investment

• where possible, feeding excess power back into the grid to contribute to energy security for the broader community as well as earning revenue for the data centre

South Africa is already taking steps to encourage energy selfsufficiency at data centres, as evidenced by the National Data and Cloud Policy, published on 31 May 2024. The policy states that data centres with self-sufficient energy and water sources should be “prioritised”.

To drive investment in renewables in the context of data centres and the country at large, there are always two options – carrot or stick. The carrot (rewarding proactive efforts) is often preferred as it encourages investment and innovation, making adoption more appealing and reducing resistance. Thus, incentives such as tax

breaks and reduced tariffs on renewable-energy hardware should be considered to foster growth in the renewable-energy sector, creating green jobs and green data centres.

Contrary to this, the South African government recently elected not to renew the 2023 tax incentives on solar panels and imposed a 10% tariff on all imported solar panels. These actions have the potential to discourage investment in renewable energy. South Africa should consider adopting the example of other African nations that have proven successful in incentivising renewable energy investment. For example, in 2021, Kenya exempted solar and wind energy specialised equipment from VAT; in Ghana, all imported solar panels are VAT-free; and in Botswana, equipment and machinery including solar panels and inverters have been exempted from import duty.

Embracing renewable-energy investment is imperative for South Africa to fully capitalise on the opportunities presented by AI and AGI. By prioritising sustainable power sources for data centres, the country can meet the substantial and continuous energy demands of advancing AI technologies. Proactive action today will enable South Africa to harness AGI for economic growth and social development, paving the way for a more equitable and sustainable future.

Mandy Hattingh, NSDV Legal Practitioner.

Rand Water shows resilience and growth

Rand Water presents annual financial results to the Minister of Water and Sanitation.

The exceptional results presented at Rand Water’s 2024 AGM underscored the utility’s resilience and growth, affirming its position as one of the leading water utilities globally.

The Chairperson of the Rand Water Board, Mr Ramateu Moyokolo,, had the honour of presenting the company’s Annual Results to the Minister of Water and Sanitation, Honourable Pemmy Majodina, on the occasion of Rand Water’s Annual General Meeting on 30 November 2024.

The meeting brought together the board members of Rand Water and of the Rand Water Foundation, shareholders, customers and the executive and top management committees to celebrate the progress and achievements of the past financial year.

Financial highlights:

• Revenue increased by 11%, reaching R21.8-billion

• Gross profit rose by 15%, amounting to R7-billion

• Net profit surged by 29%, totalling R4.6-billion

• Peak demand hit 5 200ML/d, with an average daily demand of 4 555ML/d

Minister’s appreciation

In her address Minister Majodina commended Rand Water for its impressive performance and acknowledged its critical role in ensuring reliable water supply to its customers. She recognised the challenges posed by South Africa’s status as a water-scarce country and stressed the need for water conservation and efficient

The Chairperson of the Rand Water Board, Ramateu Moyokolo, greets Minister of Water and Sanitation, Honourable Pemmy Majodina.

usage by all citizens. The Minister also reinforced the Department of Water and Sanitation’s commitment to prioritising investment in bulk-water supply, infrastructure and municipal water reticulation. Additionally, she expressed support for proactive infrastructure maintenance projects, applauding Rand Water for the major maintenance work carried out in June and July 2024.

She emphasised the importance of such maintenance efforts in ensuring water sustainability and long-term reliability. She praised Rand Water’s governance and leadership, specifically acknowledging the efforts of the Board, led by the Chairperson Ramateu Monyokolo and the Group Chief Executive Sipho Mosai. The entire Rand Water team drew praise for its dedication to providing world-class water services.

In her remarks, the Minister emphasised the importance of collaboration to tackle water and sanitation challenges and strengthen partnerships within the water sector.

Looking ahead: water sustainability

As a world-class water utility, Rand Water is proud to be ranked among the top four best water utilities globally. While celebrating these achievements, we remain committed to working tirelessly to provide clean, safe, reliable and sustainable water services for all.

Group Chief Executive Sipho Mosai concluded, “ We call upon our stakeholders, partners and communities to join us in building a future of water sustainability. Through collaboration and innovative solutions, we can ensure equitable access to this vital resource and strengthen the resilience of our water systems.

“Together, we can tackle the challenges of water security and create a sustainable legacy for future generations.”

Minister of Water and Sanitation, Honourable Pemmy Majodina, with the hard-working Rand Water team.

Minister Majodina with the Executive Committee of Rand Water at the 2024 AGM.

Data is the key to speeding up mining investment

The world urgently needs to find more of the minerals needed to power electric vehicles and the transition to a greener economy. Opportunity spoke with Kimmo Tiilikainen, the Director General of GTK (Geological Survey of Finland), at the Nordic Sustainable Mining meeting about how his organisation is sharing best practice across the world. Tiilikainen had three spells as a cabinet minister, most recently as Minister for Housing, Energy and the Environment, before taking up his current position.

Is GTK (Geological Survey of Finland) a state entity?

Yes it is, the organisation falls under the Finland Ministry of Economic Affairs and Employment.

But your activities are not limited to Finland, is that correct? We are doing geoscientific research not only in Finland, but we also provide our services based on the science that we do in very many corners of world. For example, we are active in several African countries.

Do you have a relationship with South Africa’s Council for Geoscience?

Indeed, Council for Geoscience (CGS) is like our sister organisation and we do have contact with them. Gatherings such as the Mining Indaba give us a chance to have more meetings.

The CEO of CGS, Mosa Mabuza, says that government and society should not look at expenditure on geoscience as an expense, but rather as an investment. What do you think? I totally agree with my colleague!

You have previously served in cabinet as a government minister. Is it common in Finland that someone would move from politics to the civil service?

It does not happen very often, but every now and again there is someone who does that. I have natural sciences background, with a focus on the economics of natural resources. I spent about 20 years in politics, including serving as Minister for Housing, Energy and the Environment, so I had a lot to do with sustainability issues, things such as adaptation and climate change.

Are there any major insights that this wider experience of looking at the problem from both sides has given you?

I have realised that if we are to have success in implementing the Paris Agreement, where we are targeting 1.5 level, then it will need huge investments to bring electric vehicles (EVs) to the market. And if that is going to happen, then all those EVs need the raw materials they require to run.

The supply of critical raw materials can be a serious problem when we are tackling climate change. Can we get the raw materials? We need those CO2 reductions very quickly, but can we get the replacements that we need equally quickly?

That’s the big question. Taking my background into account, I am in a good position at the moment to work with these mining issues. They are practical issues.

Is your position based on which political party is in power? The position is not permanent but it is based on a five-year contract. All similar positions within research institutes are nominated for five years.

Are you enjoying the work you are doing now at GTK?

It is definitely very stimulating. It is inspiring to work with such skilful and motivated people who are using their abilities in science to solve the problems that society is facing. I think it is very challenging and a very worthwhile challenge.

In politics you find that people are trying to find the weak part of proposals. In this environment we can

Kimmo Tiilikainen, Director General of GTK.

New and expanded office, pilot plant and laboratory facilities for GTK (Geological Survey of Finland) were officially opened in June 2024 in the town of Outokumpu in the eastern part of Finland. The new facility is part of the broader development and renewal of the GTK, intended to promote the clean transition and the circular economy.

focus all our energies on finding solutions. I have found that really interesting and rewarding.

What is the staff complement of GTK?

We have a staff of 450, 80% of whom have degrees at master’s or doctoral level.

What services do you provide when you operate outside of Finland?

What we are providing for our partners worldwide is mainly to take care of quality assurance. We can help our partners with regard to investors being able to rely on the results that we provide. In the context of speeding up investment into the sustainable minerals sector, the importance of relevant data is the key issue.

Does the work of GTK go beyond mining?

We are not only focussed on mining and the circular economy, we also involved in projects related to groundwater and water management issues in Africa.

Are there water-management lessons that the world can learn from Finland?

One very interesting example is in the storage of groundwater. We have been using aquifers as storage in Finland for decades. Water can be stored in various geological layers so that it can be purified, like a filter. Then the idea is that it can be used later when it is needed.

Would it be correct to say that testing is at the core of what you do?

We do a huge variety of tests, not only in terms primary production, but also testing with tailings from mines. We ask how they can be re-mined and we look at how we can remove harmful elements from tailings.

South African mining company Sibanye-Stillwater has made a big investment in the Keliber lithium project in Finland. The project will produce battery-grade lithium hydroxide, an essential component in lithium-ion batteries.

PHOTO: GTK | PHOTO: Sibanye-Stillwater

We look at what other uses we can find for them. Mines produce a big amount of residue so the issue is very important.

Beyond mining, there are different kinds of industries, for example the metal industries, which are starting to act like a circular economy in many ways.

Do you have plans to expand?

Right now, we are reviewing our operations, with the intention of bringing in a lot of digitisation. We are focussed on making it more operationalised and including it in our testing. The need for our services is increasing so there is a need to expand.

What is your exposure to Africa?

We have been involved with or will be involved in 15 African countries. In addition, the EU is discussing partnership agreements with several African countries concerning minerals and raw materials.

Finland is a small country but because of our history, we have a lot of knowledge of mining, and we have a great variety of companies in many related fields. We have a high level of skills and there are excellent opportunities for technology development for all parties involved. There are good opportunities for African countries to work with us and it is also a privilege for GTK to work with partners.

PHOTO: GTK

Geoscientists have a vital role in finding critical minerals to support the transition to a greener economy.

3-6 February 2025

CTICC, Cape Town

Innovative engineering and fabrication solutions that deliver an impact

The founder and CEO of Uduhu Holdings, Teboho Mkhwanazi, is determined to leave a lasting legacy of quality and value

Teboho Mkhwanazi, CEO of Uduhu Holdings

How did the company come to be formed?

Uduhu Holdings was born out of my vision to address a gap in the engineering and fabrication industry. I founded the company with the goal of creating innovative solutions that could deliver both technical excellence and meaningful impact. What started as an idea has evolved into a company that thrives on solving challenges and contributing to the industries that we serve.

What drives you?

As the founder, I remain actively involved in driving Uduhu Holdings forward. Being a young and agile company gives us a unique advantage – we can adapt quickly to changing needs, innovate boldly and deliver smarter solutions faster. What motivates me is knowing that every project we complete leaves a lasting legacy of quality and value.

What is the project you are most proud of, and why?

Two projects stand out: the Eskom Half Station Shutdown (HSSD) corrosion protection work and the 18-metre Carbon-in-Leach (CIL) Steel Tank project at a gold mine. Both were complex and highstakes operations, requiring precision and expertise under tight deadlines. These projects reflect the resilience, skill and dedication of our team and our ability to deliver under pressure.

Diversifying and transforming

Uduhu Holdings Managing Director Thato Sete reports that the company is on an expansion drive and aims to be a leader in turnkey engineering projects.

What are the core competencies of Uduhu?

Our core competencies include civil and structural engineering, steel fabrication, welding and corrosion protection. What sets us apart is our ability to integrate these disciplines into turnkey solutions for our clients.

As a young company, we are highly agile, enabling us to respond to challenges quickly and deliver results that consistently exceed expectations.

Is there a division of the business that is experiencing more growth than others, perhaps due to how the economy is growing?

Our corrosion-protection division is currently experiencing rapid growth. With industries like mining and energy placing greater emphasis on asset longevity, the demand for robust, high-quality protective solutions is growing. This aligns perfectly with our expertise and we’re scaling up to meet this demand.

Do you have plans to expand in the near future, either in terms of what you offer or to a new geographical area?

Thato Sete

We’re not just expanding, we’re diversifying and transforming. Uduhu Holdings is growing its footprint across South Africa and exploring opportunities in neighbouring regions. Our focus is on becoming a leader in turnkey engineering projects, offering end-to-end solutions that include design, fabrication, installation and maintenance. This approach positions us as a one-stop partner for clients looking for seamless, innovative and reliable solutions. Managing Director

UDUHU HOLDINGS

Setting new standards for quality, sustainability and excellence in engineering, fabrication, welding and corrosion protection.

Uduhu Holdings is a young, dynamic group of companies founded by Teboho Mkhwanazi to deliver cutting-edge engineering solutions. Specialising in civil and structural engineering, steel fabrication, welding and corrosion protection, the company is a trusted partner to industries such as mining and construction. With Thato Sete playing a key leadership role as a partner, Uduhu combines agility, expertise and innovation to adapt quickly to client needs. The company is expanding its footprint and evolving its offerings to include turnkey engineering projects, setting new standards for quality, sustainability and excellence.

What we do

Welding engineering

Our welding engineering services are characterised by precision and expertise. We employ cutting-edge techniques and a highly skilled team to ensure the integrity and strength of welded components. Whether it's structural welding, material analysis, or quality control, we are your trusted partner in welding engineering solutions.

Construction

Our expertise extends across a spectrum, including the construction of concrete structures, steel structures, earthworks, sandblasting and corrosion protection. Whether for commercial or industrial endeavours, our comprehensive services ensure each project is a testament to both functionality and aesthetic excellence

Consulting engineering and management

We provide comprehensive guidance, technical expertise and project management solutions. Whether you require assistance in project planning, feasibility studies or regulatory compliance, civil and structural designs, we bring experience and insight to make your project a triumph.

Fabrication, repairs and installation

From intricate metal fabrication to swift and reliable repair services, we have your needs covered. Our expert team can craft, mend and install with utmost precision. We excel in creating custom solutions, handling repairs efficiently, and ensuring installations are seamless, no matter how complex the task.

Quality

We proudly hold ISO 14001:2015 and ISO 45001:2018 accreditations, showcasing our unwavering commitment to quality management and environmental sustainability. These certifications signify our proactive approach to eco-friendly practices and the assurance of a secure working environment.

Finance

In strict accordance with applicable laws and regulations, our financial management system undergoes rigorous independent audits on an annual basis. Additionally, we proudly hold a commendable 6CE 6ME grading from the Construction Industry Development Board (CIDB), affirming our commitment to excellence in financial practices within the construction industry.

Safety

Adhering to the ISO 45001:2018 safety management system, we uphold a globally recognised framework for our occupational health and safety (OHS) practices. Our objective is to minimise workplace incidents, prioritise the well-being of our team, and enhance our overall OHS performance.

Your success is our priority

Our team approaches each project with a level of dedication that goes beyond mere job completion – we tirelessly work to transform your vision into a tangible reality.

Seasoned experience and expertise

Over the years, we have successfully navigated a diverse array of challenges, ranging from intricate mechanical systems to complex civil engineering endeavours. Trust us to infuse your project with the invaluable experience and proficiency that sets us apart.

Some notable projects

• ESKOM East HSSD main cooling water duct and piping: Condenser chemical cleaning and HPWJ, cooling tower cleaning and internal repairs, MCW valves replacement and repairs, MCW pumps overhaul (Tutuka) and heat-exchanger plates.

• SASOL U217 platform and staircases: Steel fabrication and installation and sigma-corrosion-protection coating.

• Elikhulu substation masonry walls repair: Fabrication and installation of steel plates.

• Evander Gold Mines mill building, structural modifications: Earthworks and reinforced concrete, steel fabrication and installation and Sigma corrosion protection coating.

Contact details

Head Office: 16 Cornell Road, Evander 2280

Sasolburg Office: Industrial Zone 2, Sasolburg 1947

Tel: +27 81 593 7651

Email: admin@uduhu.co.za

Website: www.uduhu.co.za

Excellence knows no gender

Hlengiwe Gumede, Chief Operations Officer of Notefull Engineering, looks forward to a future where women leaders will no longer be the exception.

Please tell us a bit about yourself.

I am Hlengiwe Gumede, mother of three and the Chief Operations Officer of Notefull Engineering. My passion lies in mechanical engineering, empowering communities and steering this remarkable organisation towards excellence. With extensive knowledge in operations and the mechanical engineering sector, I bring a dynamic approach to leadership.

Outside of work, I am deeply inspired by nature, gardening and reading, which sharpens my perspective and keep me grounded. Fitness is a cornerstone of my lifestyle; a sharp mind thrives in a sharp body. As a proud graduate of the University of Zululand, UCT’s Graduate School of Business and GIBS Business School, I’ve honed my skills to lead with purpose and integrity.

Your background is very diverse: how did you come to engineering?

My journey into mechanical engineering began with Nokuthula Mpunzana, the visionary founder of Notefull Engineering. She saw potential in me and brought me on board as a Human Resources Manager. At the time, I was transitioning from my role as a Parliamentary Liaison Officer in the Department of Agriculture.

One of my greatest strengths is adaptability. Through relentless curiosity and dedication, I immersed myself in the world of mechanical engineering and discovered a deep passion for the field. Today, I am honoured to contribute to the growth of this incredible organisation.

What core values are most important to you as a leader?

Four pillars define my leadership:

• Leadership: true leadership inspires trust, empowers teams and fosters innovation.

• Integrity: transparency and honesty are non-negotiable in our work and relationships.

• Adaptation: the ability to evolve and thrive in changing environments is key to sustainable success.

• Empowerment: building others up and creating opportunities for growth fuels lasting impact.

Your CEO has described you as one of her pillars since she established Notefull Engineering. Can you elaborate?

Nokuthula and I share an unbreakable bond, forged through shared challenges and triumphs in a male-dominated industry. We are not just colleagues – we are sisters with a unified vision to make Notefull Engineering a beacon of excellence.

Our partnership stands as a testament to the power of black women lifting each other up. Together, we have built a culture of resilience, excellence and unwavering dedication to our organisation and its mission.

How do you incorporate diversity and inclusion into your leadership practice?

Diversity and equality are the cornerstones of my leadership. For too long, talented individuals from historically disadvantaged backgrounds have been overlooked. At Notefull Engineering, we actively seek out skilled artisans and passionate individuals from all communities, ensuring they have the platform and support to thrive.

This isn’t just about inclusion – it’s about creating a legacy of opportunity for the next generation.

What challenges have you faced in a male-dominated industry, and how have you overcome them?

The challenges have been countless, but my faith and our collective purpose keep us resilient. Each obstacle becomes an opportunity to show that we deserve a seat at the table.

We refuse to be underestimated or overshadowed. With excellence as our standard, we prove – again and again – that we are unstoppable.

How do you see the role of women in leadership in engineering evolving in the next five years?

The next five years will redefine the landscape of engineering. Women leaders will no longer be the exception; we will become the norm.

Through mentorship, advocacy and bold innovation, we will create pathways for more women to rise and excel. Our contributions will be undeniable and our impact will inspire industries to embrace diversity at every level.

This is not just about breaking barriers – it’s about building a future where excellence knows no gender.

Hlengiwe Gumede, Chief Operations Officer of Notefull Engineering.

Notefull Engineering

Quality mechanical engineering that inspires confidence.

Since 2017, Notefull Engineering has grown to meet the needs and ever-changing demands of the mechanicalengineering industry.

Notefull Engineering is proud to be a leader within the metal industry, specialising in all steel fabrication such as welding, laser cutting, punching, CNC machining, plate bending, sandblasting and painting, piping, steel plating, structural steelwork and more.

Values

• Teamwork

• Excellence

• Integrity

• Zero harm

• Innovation

Metal fabrication

Metal fabrication is the process involving the transformation of raw metal into a product or item that can be used in construction or as an assembly. As an alloy of iron and other metals, steel has a wide variety of different variations which are used in structural and fabrication operations. In essence, fabrication is taking metal and shaping it to a desired specification.

Notefull’s custom-metal-fabrication services ensure fast and cost-effective solutions for any parts that need to be made from 3D CAD files or engineering drawings to fabrication services. Notefull offers a range of sheet metal materials, including aluminium, copper, steel and stainless steel, as well as assembly services like installing PEM inserts, welding and finishing services.

Services

• Steel fabrication

• Specialised welding

• Mechanical engineering design

• Machine moving and rigging

• Boiler making and fabrication

• Sand blasting and painting

Branches

Notefull Engineering’s three branches are located in Richards Bay, Tongaat and Pretoria. A large fleet of vehicles ensures the best

logistical value when delivering clients’ products and services. A full fleet of 19 vehicles includes a wide variety of trucks, 4x4s and panel vans.

Major clients

Lafarge, Eskom, Sappi, Tronox, Rio Tinto, Rand Water, Department of Public Works, Tongaat Hulett, Corteva, Foskor, Transnet, Harmony Gold, Multotec.

Accreditations

ISO9001:2015 QMS.

ISO 9001 and ISO 3834 accreditations and the company’s BBBEE certification ensures that clients get consistent, good-quality products and services. The ISO 3834 is regarded as the global benchmark in welding quality requirements.

BBBEE: Level 1

Memberships

SACCI, Zululand Chamber, PMB Chamber, Durban Chamber, Cape Town Chamber, American Chamber, Durban Automotive Cluster, JCCI, AFSA, SAIW.

Contact details

Richards Bay (Main Branch): 9 Ceramic Curve, Alton, Richards Bay 3901 | Tel:+27 35 761 1015

Automotive Supplier Park, 30 Helium Road, Rosslyn, Pretoria, Pretoria | Tel:+27 12 564 3503

Email: Nokuthula.m@notefullkzn.co.za | marketing@notefullkzn.co.za Website: https://notefullengineering.co.za

Tempo Equipment and Attachments

Engineering Excellence That Works for You.

Tempo Equipment and Attachments has become one of the most trusted names for custom-designed, highperformance attachments for nearly fifteen years. Operating across diverse industries, including mining, construction, demolition and agriculture, we have built a reputation for delivering durable, dependable and innovative equipment that withstands the toughest challenges.

A legacy of innovation and reliability

Tempo was founded with a clear mission: to equip the mining and earthmoving industries with robust, dependable attachments that deliver unmatched performance. With some of our products manufactured locally and others produced in a cutting-edge 83 000m² European facility, we combine global expertise with advanced technology to create world-class equipment that stands the test of time.

Three decades of trust: our partnership with CTC Plant Company

For over thirty years, CTC Plant Company has been the exclusive agent for Tempo Equipment and Attachments in Africa. This enduring partnership has allowed us to provide top-tier engineering solutions tailored to the region’s unique challenges. From heavy-duty mining tools to high-efficiency demolition attachments, our collaborative expertise helps businesses streamline operations and improve productivity.

Custom solutions for maximum efficiency

At Tempo, we understand that no two projects are alike. That’s why we specialise in customisation, working closely with our clients to engineer attachments that meet their specific needs. Whether you require custom-sized attachments, advanced hydraulic systems or specialized tools for niche applications, our expert team is

Tempo VibroRipper.

dedicated to delivering precision-crafted solutions that enhance efficiency and performance.

Our Research and Development Department continually strives to push the boundaries of innovation, ensuring that we remain at the forefront of attachment manufacturing. From hydraulic breakers to amphibious excavators, our entire lineup is precisionengineered and rigorously tested for durability.

Uncompromising durability and quality control

Quality is at the heart of everything we do. Our strict quality-control measures ensure that each attachment meets the highest industry standards, from raw material selection to final product testing. Designed to thrive in demanding conditions, Tempo’s equipment provides longterm reliability, reducing downtime and boosting operational productivity.

With nearly a century of combined experience among our key personnel, we pride ourselves on delivering expertly engineered solutions that help businesses operate safer, smarter and more efficiently. Whether you need rock-handling equipment, soil-compaction tools, or specialised roadworks attachments, Tempo Equipment and Attachments offers expert guidance and custombuilt solutions that elevate your work.

Whatever the job, Tempo ensures you have the right tools to work faster, safer, and more effectively.

Beyond products: innovation and customer support

At Tempo, innovation extends beyond manufacturing - we are committed to ongoing client support. Our team is always ready to provide expert advice, assist with product selection and offer post-purchase technical support to ensure long-term reliability.

We don’t just deliver attachments; we deliver innovation, durability and quality solutions that empower businesses to excel.

Tempo Equipment and Attachments – Engineering Excellence That Works for You.

Contact details

Cnr Michigan and Manchester Streets, Boquinar Industrial Area, Cape Town 7460

Tel: +27 21 386 4190

Cell: +27 82 825 6966

Email: marks@ctcplant.co.za | partsadmin@ctcplant.co.za

Website: www.tempoequipment.com

Tempo Hammers

Tempo Hammer.

Work Integrated Learning programmes receive a boost from the National Skills Fund

More than 700 students and graduates will benefit from a grant issued by the National Skills Fund to Resolution Circle.

Resolution Circle, a leading advocate for enhancing academic and industry connections, has reached a significant milestone by securing a National Skills Fund grant to support Work Integrated Learning (WIL) programmes for approximately 700 learners.

This initiative benefits students from Universities of Technology (UoTs), Technical and Vocational Education and Training (TVET) institutions and recent graduates, bridging the gap between theoretical education and practical industry experience.

The National Skills Fund grant has empowered Resolution Circle to offer hands-on learning opportunities, enabling learners to gain real-world insights and develop essential industry skills. Through these WIL programmes, participants engage in projects under the mentorship of seasoned industry professionals, providing them with the chance to navigate real-world challenges and capitalise on emerging opportunities in their fields.

Enhancing academic journeys and industry readiness

For students from Universities of Technology, the WIL programmes have enriched their academic experience by allowing them to apply classroom knowledge to real-world situations. This practical exposure has deepened their understanding of their chosen fields, equipping them with the skills needed to excel in their future careers.

TVET learners, who already possess technical training, have benefitted significantly from the practical experience gained through these programmes. This exposure has made them more job-ready upon graduation, enhancing their employability and enabling a smoother transition into the workforce.

Recent graduates have also leveraged this opportunity to boost their employability. By acquiring industry-specific skills and expanding their professional networks, they have positioned themselves as attractive candidates in a competitive job market.

Profound impact on learners and employers

The impact of the National Skills Fund grant on learners has been transformative. Participants have reported increased confidence, enhanced problem-solving abilities and a greater sense of preparedness for the workforce. These outcomes have not gone unnoticed by employers, who have recognised the exceptional calibre of graduates who have completed these WIL modules.

The programme has been a game-changer for many of the students and beneficiaries. The hands-on experience they have gained through Resolution Circle has not only improved their skills but also their ability to succeed in their chosen industry, ensuring that they are employable.

Employers have echoed these sentiments, noting that the graduates they have hired from Resolution Circle's WIL programmes have consistently demonstrated a strong work ethic, problem-solving skills and a readiness to contribute from day one. These programmes are clearly producing candidates with a competitive edge.

Strengthening the education-industry link

Resolution Circle's commitment to enhancing the academic journey and industry readiness of learners has resulted in a stronger link between education and industry. This initiative contributes to the development of a skilled and adaptable workforce, poised to drive innovation and growth across various sectors.

“We are incredibly proud of the impact these Work Integrated Learning programmes are having on our learners," said Sibusiso Shange, Senior Executive Manager at Resolution Circle. "This grant has allowed us to bridge the gap between education and

industry, providing invaluable opportunities for our learners to gain practical experience and develop the skills needed to thrive in their chosen careers.”

ABOUT RESOLUTION CIRCLE

Resolution Circle is dedicated to bridging the gap between theoretical education and practical industry experience. Through innovative programmes and strong industry partnerships, Resolution Circle empowers learners to achieve academic excellence and career readiness, contributing to the development of a skilled workforce that drives innovation and growth in South Africa.

For more information, see www.resolutioncircle.co.za

Giving South Africans a chance to live better lives

Eruditio provides quality skills-development training and enterprise and supplier development solutions by partnering with corporate companies across South Africa.

Eruditio was founded by Joel Emmanuel in 2012. Eruditio exists to transform the South African business landscape as well as to transform the lives of ordinary South Africans so that they can create sustainable incomes for themselves and their families.

We achieve this by partnering with corporate companies and by offering skills-development training and enterprise and supplier development solutions to help upskill qualifying learners, entrepreneurs and SMMEs.

We make sure that we provide high-quality, transparent and measurable impact to our partners, clients and beneficiaries.

Programme management, execution and reporting are key components within our service delivery.

The services we offer have made a concrete difference in the quality of lives lived by South Africans.

Statistics

• 70% placement rate through our learnerships, resulting in fulltime or part-time employment

• More than 6 500 learners have been through our accredited skills programmes, which include full qualifications and unit standards

SKILLS DEVELOPMENT

We are a SETA-accredited training provider and experts in education and skills development solutions in South Africa. We provide fully accredited learnerships, skills programmes and skills development, soft-skills training and online learning which includes accredited online courses.

We work and partner with corporate companies to offer skillsdevelopment training for the growth and development of South Africans.

Why choose us?

We are dedicated to creating innovative training solutions through research and development and are committed to delivering impactful and measurable skills development solutions.

We have extensive experience with disabled learners which requires on-site training and support.

Among the specialised services our education and training experts provide are:

• Workspace skills plans development and submission

• ATR submissions

• SETA grant submissions (mandatory and discretionary grants)

• Skills gap analysis

• SETA grant submissions (mandatory and discretionary grants)

• Skills-gap analysis

Full Qualifications and National Certificates

• Business Practice: NQF Level 1

• National Certificate: Informal Business Practice NQF Level 3

• National Certificate: New Venture Creation NQF Level 2 and 4

• Business Administration Services: NQF Level 3

• Generic Management: NQF Level 4 and 5

• Informal Small Business Practice: NQF Level 3

• National Certificate: Information Technology End Use Computing NQF Level 3

• Occupational Certificate: Training and Development Practitioner NQF Level 5

Services SETAs:

SSETA: 12709; W&R SETA: W&R 100; MICT: LPA/00/2022/07/0009; QCTO: 07-QCTO/SDP030222-439

Joel Emmanuel, Eruditio Managing Director

Accredited short courses

• Leadership and management

• Customer service

• Work etiquette

• Financial management

• Coaching and mentoring

• Small-business management

• Business-model canvas

• Costing and pricing

• Sales and marketing

• Business planning

• Digital literacy

ENTERPRISE AND SUPPLIER DEVELOPMENT (ESD) MANAGEMENT

We offer development, management and reporting of enterprise development and supplier development programmes, all aimed at helping entrepreneurs and SMMEs in South Africa grow through our expert skills development, incubation and mentoring services.

As a South African business incubator, we have the skills and resources to support the growth and development of entrepreneurs through our enterprise and supplier development. Our business incubation programme gives entrepreneurs and SMMEs access to:

• business skills

• education

• business facilities and Internet connectivity

• business experts

• markets

• expert coaching and mentoring

Enterprise Development Programmes (ESDs) We manage the enterprise development programmes for many corporate companies in South Africa. We ensure that each enterprise development programme is designed to meet the needs of the individual business owner.

Supplier Development Programmes (SDPs) Transitioning enterprise development candidates or enterprises that are already established have access to our supplier development programmes. We work in collaboration with supply chain and procurement to help develop these entrepreneurs and SMMEs to access procurement opportunities.

Contact details

45 Villa Valencia Office Park, 2 Anemoon Rd, Glen Marais, Kempton Park 1619

Tel: +27 11 973 0205

General queries: info@eruditio.co.za

Learnerships: learnershipregistration@eruditio.co.za

Business Development: esd@eruditio.co.za

Website: www.eruditio.co.za

Making an impact where it matters most

General Manager Mbulelo Lekgetho is excited to be part of a team that is making a tangible difference in people’s lives and helping redress economic imbalances

Mbulelo Lekgetho, General Manager

Please describe your role at Eruditio.

As a GM, my responsibility is to oversee the day-to-day running of the company, which includes managing employees, creating a positive work culture that attracts and maintains good employees, setting up regular goals and objectives and motivating my team to meet them, ensuring compliance with legal and regulatory requirements, developing and implementing policies and procedures to enhance operational efficiency and effectiveness, representing the organisation in industry events, conferences and networking opportunities, identifying market trends and opportunities for innovation and expansion and participating in organisation-wide marketing plans.

What makes working for Eruditio special?

We are a medium-sized company that has been in existence for just over 12 years which has punched above its weight, given the calibre of clients that we are serving such as some of the Big Four banks, private banks and automotive companies. As such, I am delighted to be part of this dynamic and passionate team that is constantly growing and innovating. I believe that our work makes an impact, that makes a tangible difference in people’s lives and that’s satisfying. As our country strives to redress the economic imbalances of the past, we are at the forefront of growing SMEs, the chief job creators in a country with unacceptable levels of unemployment.

Unlike my previous places of employment, which are big multinational organisations, Eruditio is an organisation with a workforce of 10 to 15 people. In this environment, you get to learn how the company operates from grassroot level all the way to management level and at times, you find yourself operating at grassroots level because meeting deliverables to our clients is not negotiable.

Moreover, we assist entities to achieve a high B-BBEE score so they can be awarded contracts and licences by the government and private sector. For me, this is a pragmatic growth strategy that aims to realise the country's full economic potential while helping to bring the black majority into the economic mainstream. This promotes the spirit of making an impact where it matters the most.

What perspective does your accounting background and qualifications give you in terms of carrying out your role at Eruditio?

My background and qualifications will be most beneficial in my new role as follows: ability to work with people; ability to interact with our clients’ and potential clients’ senior management; ability to work closely with the MD to develop budgets and track budgets against actuals; conflict resolutions in general; lead and manage the team in an effective and efficient manner.

What have you learnt from auditing big firms and NGOs that can be useful to smaller businesses?

• How to design a system of internal control

• Developing a standard operating policy

• Developing adequate segregation of duties even for small organisations

• Significance of management accounts

For your ESD programmes, do you focus on particular sectors?

At Eruditio we do not take a one-size-fits-all approach. Each SMME is different, and we always develop tailor-made solutions to ensure that we address the key requirements of our SMMEs. As such, any SMME will be able to benefit from our programmes.

What is the Unique Selling Point of Eruditio’s ESD programme?

• Tailor-made solutions: Our services are tailored to our clients’ requirements. Our interventions speak to the specific requirements revealed by our detailed gap analysis.

• Impact: Eruditio quantitively measures KPIs like turnover growth, job creation and operating profit to validate whether impact is made or not. If you cannot measure it, then you cannot manage it.

• Walking our talk: Eruditio itself and its partners are all entrepreneurs implementing these programmes. Who better to guide you on this journey than people who have literally walked their talk?

Why is it important for people to keep learning, or developing professionally?

I strongly believe that continuous learning and developing professionally is important as new standards and best practices are being introduced on an ongoing basis, which are redefining the way that we do business. Professional development is an investment in oneself, a commitment to lifelong learning and it is equivalent to staying ahead of the curve in today’s fast-paced

workplace. It is not just a nice to have but rather a must have for anyone serious about their career.

Whether it is in our professional or personal lives, the need for ongoing education has never been more important than it is now. For example, the world is quickly moving towards the 4th Industrial Revolution (if it is not there already) where artificial intelligence, robotics and the Internet of things are fast becoming the order of the day.

Shaping a brighter future

Ntsako Shibambo, National Key Accounts Manager for Eruditio, believes that investment in youth drives national progress.

Please describe your role within the company.

My role involves identifying new business opportunities and staying updated on industry trends through meetings, conventions and workshops. I develop and nurture relationships with both potential and existing clients to ensure our services align with their evolving needs. My focus is on maintaining strong, longterm relationships, providing high-quality service and continually improving the client experience.

What inspired you to follow a career path in education, training and youth development?

I am passionate about community development, believing that empowering youth with skills and confidence shapes a brighter future. Education and training break barriers, unlock potential and inspire growth. Investing in young people not only uplifts individuals but also drives national progress.

This belief fuels my work, giving me purpose as I help create opportunities for all. I've seen how knowledge inspires confidence and hope and my commitment to education is rooted in the belief that everyone deserves the chance to reach their full potential. For me, teaching is about changing lives and expanding possibilities.

What are the key takeaways about this field that you have learnt on your journey so far?

I’ve learned that holistic development extends beyond academics, focusing on life principles and leadership skills. Educational and training programmes should be accessible to all. Lifelong learning is becoming increasingly important and personalised learning should be prioritised to accommodate each individual’s unique learning style. This calls for adaptive platforms and methodologies.

What is South Africa doing in the field of skills development that it could be doing differently?

Our country’s skills development efforts have made significant progress, but the pace needs to accelerate. Strengthening collaboration between education and industry, focusing more

on youth entrepreneurship training, expanding skills programmes to rural areas, upskilling workers in the informal economy and enhancing the value of TVET education with clearer pathways to employment are all essential for addressing regional disparities and promoting broader economic inclusion.

Does Eruditio keep statistics on how many graduates of its training programmes get jobs?

Yes, we have a robust LMS system that tracks learner progress from initial engagement to employment. We also help candidates secure jobs through strategic partnerships with various organisations. Additionally, our Alumni Programme invites graduates to share their success stories with current learners, providing motivation and inspiration.

What are the most popular among the training courses you offer?

End User Computing NQF 3, Business Administration NQF 3, New Venture Creation NQF 4, Generic Management NQF 4 & 5 and Consumer Education Training (Financial Literacy).

Do you help employers with training and workplace skills programmes?

We provide comprehensive skills-development services, including skills gap analysis, training recommendations and interventions. We also compile workplace skills plans and submit the annual training report to the relevant SETAs.

Ntsako Shibambo, National Key Accounts Manager

Starlink to South Africa

Bruce Hunt, Managing Director at Transcend Capital, believes that an empowerment arrangement could be the way to attract Starlink to South Africa, and to ensure a big win for all concerned.

South Africa's pursuit of digital inclusion faces a significant hurdle – the high cost of broadband access, especially in underserved communities. Starlink, with its promise of affordable satellite Internet, presents a potential solution. However, regulatory requirements mandating 30% black ownership for international communications companies pose a challenge. Primarily because at the moment, these organisations are not able to use an Equity Equivalent Programme (EEP) to acquire an ICASA licence without a change in regulations.

The good thing is that the Minister of Communications and Digital Technologies, Solly Malatsi, has announced that his department will look at extending the concept of equity equivalents to multinationals applying for an Electronic Communications Network Service (ECNS) licence. This is a recognition of the potential of an EEP, as this could pave the way for Starlink's entry while simultaneously empowering South African communities and businesses. A well-crafted EEP could be a game-changer, benefiting both Starlink and South Africa.

Instead of focusing solely on direct ownership, Starlink could invest in initiatives that directly benefit black-owned businesses and communities. This approach aligns with the spirit of South Africa's Broad-Based Black Economic Empowerment (B-BBEE) policies, which aim to address historical inequalities.

Successful EEPs implemented by other multinationals can be emulated here. Amazon, for instance, has effectively supported black-owned businesses in the ICT sector through technical training and grants. Similarly, JP Morgan's Abadali Fund focuses on empowering black entrepreneurs in financial services. These examples demonstrate that alternative pathways to empowerment can be both impactful and sustainable.

Necessary innovation

When the Competition Commission oversaw Google’s entry into South Africa, some innovation was needed. Google had to establish an AdWords training programme for small businesses as a means to help bridge the digital divide in this sector. This

Starlink Minis were effectively deployed by Ukrainian armed forces in the first weeks of the war with Russia.

helped Google to achieve a key objective and a requirement by the Commission without incurring substantial cost.

A similar approach could be applied to Starlink, where underutilised bandwidth could be discounted for educational institutions and entrepreneurs from underrepresented communities. This would expand digital access, foster entrepreneurship and maximise social impact at a low cost. Imagine the transformative potential of connecting rural schools and public facilities to high-speed Internet, bridging the digital divide and fostering educational opportunities.

It is equally important to highlight the success of employeeshare schemes in other sectors. While Starlink's operational structure may not lend itself to traditional employment models, it could explore innovative alternatives. Partnerships with local black-owned tech firms in areas like distribution or installation could be a viable option.

In situations like this it is easy to fall into the trap of implementing highly structured legal solutions. However, multinational companies need to be careful of too good to be true structured private-equity solutions. It is good that Starlink has chosen not to enter the market taking this easy high-risk solution that we are seeing a number of advisors promote. Those schemes, in contrast to well-capitalised black private-equity funds that deploy capital, are often abusive structures that aim to circumvent B-BBEE. They are superficial in structure and are offered by a number of advisors that promise empowerment without substance and don't present a viable empowerment alternative.

Sustainable structures

Real transformation requires a commitment to sustainable, impactful structures that go beyond mere compliance, as is seen in bone fide private-equity funds.

By investing in initiatives that empower black-owned businesses and communities, Starlink has an opportunity to demonstrate a commitment to social responsibility and an equitable gain into the market. This aligns well with the B-BBEE legislation and policies, which are primarily aimed at addressing historical inequalities.

Lastly, an EEP can help Starlink build a loyal customer base in South Africa. By demonstrating a commitment to social responsibility and empowerment, Starlink can enhance its brand reputation and foster trust among South African consumers. This can lead to long-term market success and contribute to the sustainability of Starlink's operations in the country.

An EEP could be a win-win for all stakeholders. Starlink gains entry into a burgeoning market, while South Africa benefits from increased connectivity, economic empowerment and skills development. By drawing on the successful models of companies like Amazon, Google and JP Morgan, Starlink can create an EEP that truly aligns with South Africa's empowerment objectives and paves the way for a digitally inclusive future.

ABOUT TRANSCEND CAPITAL

Transcend Capital is a specialist Employee Ownership (ESOP) and BEE Ownership transaction advisor, serving South Africa’s leading

listed and multinational companies. Founded in 2005, Transcend Capital has successfully advised on over 200 transactions. We utilise our unparalleled expertise and experience to structure and implement value-adding ESOPs and BEE transactions. Our culture and way of working enables us to be trusted advisors to blue-chip corporations and to attract and retain top talent. We deliver high-quality solutions and transactions that benefit our clients and the country.

ABOUT THE AUTHOR

Bruce Hunt is the Managing Director at Transcend Capital. He has 18 years of experience in structuring multinational BEE transactions, including Employee Ownership, Broad Based Schemes and introducing strategic investors. He also advises on the public interest elements of Competition Commission approvals.

Bruce Hunt, Managing Director at Transcend Capital

Empowering South Africa's R750-billion township economy

Annelene Dippenaar, Chief Business Officer at Shop2Shop, reports on what needs to be done to accelerate the transition to cashless transactions in South Africa’s townships.

In the heart of South Africa's vibrant township economy, valued at an estimated R750-billion, a transformative shift is taking place. Small to medium-sized businesses are flourishing as the adoption of cashless transactions grows. Despite the widespread availability of banking services, cash remains dominant and collaboration between private and public stakeholders is essential to address perceptions, drive down costs and increase the uptake of digital-payment solutions.

According to research by Statista, while eight out of ten South African adults have a bank account, 73% of point-of-sale transactions are still conducted in cash, highlighting the need for a significant push towards digital payments. The reliance on cash is particularly evident in the bustling township economy, where more than 1.8-million informal traders operate. This preference is driven by several factors: the inclusive nature of cash allows everyone to participate in the economy irrespective

Digital payments can enhance safety by reducing the risks associated with cash while offering greater convenience through faster transactions and 24/7 accessibility. Beyond providing a layer of financial transparency for merchants, digital transactions and payment histories will now help these informal businesses build transactional profiles, making it easier for them to access loans and financial services. This, in turn, can drive economic growth by supporting local entrepreneurs and cultivating a safer society.

What needs to be done

However, in order to drive the adoption and usage of cashless transactions among informal businesses, several steps still need to be taken by private and public-sector stakeholders:

Address cost and perception issues

Developing affordable digital-payment solutions and launching education campaigns can help dispel misconceptions about digital payments. Improving financial and digital literacy through

PHOTO: Freepik

In South Africa, 73% of point-of-sale transactions are conducted in cash.

training programmes and community outreach is also essential to ensure that all segments of the population can benefit from digital-payment systems.

Enhance digital infrastructure

Expanding Internet and mobile network coverage, especially in underserved areas and modernising payment systems to support real-time, low-cost transactions will make digital payments more attractive and accessible. Building trust in digital payments is equally important. Ensuring robust security measures and promoting transparency in digital payment fees and processes can help build confidence among users.

Regulatory support and incentives

Creating a supportive regulatory environment for the adoption of digital payments and providing incentives for businesses to adopt digital-payment methods will encourage the transition to a cashless society. While the South African Reserve Bank (SARB) is busy with a digital payments strategy to promote digital payments more broadly across the country, cost-sensitive consumers in townships will continue to rely on cash until certain regulatory fees (such as interchange and other bank transaction fees) are addressed.

Collaboration

Finally, promoting collaboration between government, financial institutions, technology providers and community organisations is essential for developing and implementing comprehensive digitalpayment solutions.

Gaining momentum

Despite the dominance of cash, the transition to digital payments is gaining momentum for small to micro businesses. Firms like Yoco, Shop2Shop, Flash and iKhokha are at the forefront of this revolution, providing the tools and technologies needed to pave the way for a safer, more efficient and inclusive economic environment.

Traditionally, people living in townships had to catch a taxi or a bus to the closest mall to withdraw cash. Now, thanks to the widespread availability of these card payment options at local community stores, residents can purchase goods directly from nearby shops. This not only supports small entrepreneurs but also saves customers money on transportation costs.

The convenience of cashless transactions has led to a notable boom in the informal economy. More and more people in townships and informal areas prefer to spend small amounts at local shops rather than withdraw large sums of cash. This trend, accelerated by the Covid-19 pandemic, has made shopping safer and more convenient, reducing the need to queue at malls and ATMs.

The success of cashless payments has also benefited banks like Capitec and TymeBank. As more customers use their cards for transactions, banks are reducing ATM costs and focusing on enhancing the digital payment infrastructure. This shift supports

the broader goal of financial inclusion, ensuring that all South Africans can participate in the digital economy.

Seemingly ahead of the curve in this cashless transformation is Shop2Shop, whose innovative solutions and agile methods are making a significant impact on small businesses in the informal economy. To further support cashless transactions, firms like Shop2Shop offer digital vouchers which can be used for payments. Their efforts highlight the potential for a broader transition to a digital society, which additionally reduces the risks and costs of handling cash.

Although a fully cashless society is not necessarily the end goal, by taking these steps, South Africa can make significant strides towards creating more inclusive opportunities for small and micro businesses which are the lifeblood of the economy. Furthermore, it bridges the divide between the informal and formal market which stimulates economic growth within the country.

ABOUT SHOP2SHOP

The Shop2Shop platform provides accessible end-to-end technology solutions designed to empower entrepreneurs and their stakeholders by facilitating seamless payments. Our mission is to help businesses thrive in the digital economy by removing barriers to growth. From payment devices that accept card payments to free and instant payments between stores and suppliers within the ecosystem. Shop2Shop provides a payment solution that gives customers immediate access to their financial transactions, fostering an inclusive economy connecting major brands and small, informal stores.

Annelene Dippenaar, Chief Business Officer at Shop2Shop.

Five business-travel myths

Rethink your next trip, writes Bonnie Smith, the General Manager of Corporate Traveller, because common perceptions are often plain wrong. Getting your head around five common myths about business travel will help make your next trip much better.

Business travel often gets a bad rap. But what if much of what we think we "know" is actually a myth? Challenging these misconceptions can not only save money but also make your trips more productive and even enjoyable. Rethinking our perceptions is key.

"By questioning stubborn myths, we can turn business travel from a stressful obligation into a strategic advantage," says Smith. She advises you to put your rethinking cap on for these five big myths:

Ridesharing is always cheaper than car rentals

While Uber and Bolt have their place, renting a car can often be the smarter financial move. Travel management companies (TMCs) frequently score great deals with car-rental firms, offering rates that ridesharing can't match.

It’s a myth that ridesharing is always cheaper.

Plus, those rideshare costs can skyrocket fast when you're in an area prone to surge pricing. A rental car's flat rate starts looking good in comparison. So, before you default to ridesharing for your next business trip, take a moment to crunch the numbers. You might find that good old-fashioned car rental is the way to go, especially for longer stays or when you need to zip around town frequently.

Business travel is bad for employee health

A recent Maxis white paper uncovers some exciting perks of moderate work travel. Employees hitting the road for one to six nights a month often enjoy better health, lower anxiety and improved sleep compared to their desk-bound colleagues. It turns out that a bit of travel can inspire more activity and reduce the odds of smoking or obesity.

Business trips are golden opportunities to sneak in exercise, savour nutritious meals, and recharge – luxuries often overlooked in the daily grind. Plus, face-to-face interactions can spark morale and strengthen teamwork.

As Smith points out, many companies are catching on by revamping their travel policies to support employee wellbeing. This includes enticing options like hotels with gyms, healthier meal allowances and time to relax on longer trips. With fresh surroundings and valuable networking, occasional business travel might just be the secret ingredient to boosting employee health.

Business travel is always bad for the environment

While business travel can contribute to carbon emissions, many companies are taking steps to minimise their impact. For example, airlines are investing in Sustainable Aviation Fuel (SAF), which significantly reduces greenhouse gas emissions and makes flights greener.

Businesses are also rethinking how they approach travel. They’re cutting unnecessary trips and opting for virtual meetings to reduce travel frequency. When travel is essential, they focus on direct flights and use public transport, which are greener choices. Plus, many companies are choosing eco-friendly hotels that prioritise sustainability.

TMCs are also upping the ante by offering clients carbonreporting tools. These give businesses the cold, hard facts on their travel emissions. “Companies can now make data-driven decisions and set concrete sustainability targets,” says Smith.

Booking through a TMC is always more expensive

Many assume TMCs increase travel costs, but nothing could be further from the truth. TMCs have access to better deals on flights, hotels and car rentals that you can't get on your own. They know smart booking strategies, like when to book for the best rates and how to mix fare types to reduce expenses. They handle timeconsuming tasks like price comparisons and bookings, saving your team effort. By keeping travellers in line with company policy, they

help avoid unnecessary spending. Many TMCs also offer efficient booking tools that can lower fees.

“A good TMC looks at your whole travel programme, finding ways to cut costs while making trips smoother for your employees,” says Smith.

Business travel is a great way to rack up loyalty points

The idea that business travel is your ticket to rake in loyalty points is more myth than reality these days. While you can still earn points on work trips, loyalty programmes have evolved to favour businesses over individual travellers. Airlines and hotels are making points harder to redeem and less valuable, meaning those frequent flyer miles aren't stretching as far as they used to.

If your travel policy allows it, here's how to play the game, according to Smith:

• Join every loyalty programme you can; airlines, hotels, rental cars.

• If possible, book travel on your personal credit card and get reimbursed. This way, you're double-dipping, earning points from both the airline or hotel and your credit card.

ABOUT CORPORATE TRAVELLER

Corporate Traveller is a division of the Flight Centre Travel Group, dedicated to saving businesses across Southern Africa time and money. Corporate Traveller has the benefit of being part of the world's third-largest travel retailer, leveraging its global negotiating strength. It has access to over 50 of the world's leading airlines and deals with more than 100 000 hotels around the world to guarantee savings for clients. Corporate Traveller provides clear, consolidated reporting of all its clients' travel activities, helping them to control travel spend and identify opportunities to save costs.

• Speaking of credit cards, pick ones that give extra points for travel and dining. Some offer elite status and business lounge access just for being a cardholder.

• Don't forget about promotions. Sign up for those emails, they might offer double points or other bonuses.

• If booking through a company portal, ensure your loyalty numbers are attached to your profile.

Travel management companies have smart strategies for booking and can get better deals on flights, hotels and car rentals.

Bonnie Smith, General Manager of Corporate Traveller.

Trump policies may cause an initial global and US economic downturn

Citadel foresees continued sticky inflation, a strengthening dollar and strained global trade relations as a result of Donald Trump’s “America First” protectionist policies.

When Donald Trump stepped into the Oval Office on 20 January 2025, his proposed economic policies were set to initially have a negative impact on United States (US) and global economic growth, according to Citadel Chief Economist, Maarten Ackerman.

“While Trump’s proposed ‘America First’ policies are about economic growth, the irony is that protectionism will be creating

its own set of economic headwinds. Inflation, which is a global problem, won’t disappear overnight.”

Ackerman explains: “With the Senate and House secured by the Republicans, the 'red sweep' raises expectations that the party could more effectively pursue its global macroeconomic and domestic economic policies aimed at fostering economic growth and reducing inflation. These policies may, however, initially have

USA bound. The US is a major market for Mercedes-Benz South Africa, which exports from the Port of East London.

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the opposite effect of what he promised, as the Republicans’ hardline immigration policies will impact the availability of affordable labour and their trade policies won’t make inflation disappear overnight.”

“Trump wants to produce in America. His protectionism will lead to a stronger dollar, which is exactly what he wants, and will also further slow down global trade. In addition, his proposed tariffs on imports will further slow trade and hike inflation.”

Having called “tariff” his “favourite word in the dictionary”, Trump promised 200% trade tariffs on Mexican cars and 60% tariffs on certain Chinese products.

Citadel Chief Investment Officer George Herman adds that Republican policies could cause the largest-ever impact on the fiscal deficit, “The US deficit is almost twice the size it was in 2016. We're probably going to get to Covid levels, which was a very unusual time with a lot of spend from government to get the economy going. The US will keep on borrowing, but the cost of borrowing will need to increase. Looking at government debt in relation to gross domestic product (GDP), the already enormous US debt-to-GDP ratio of 125% is expected to rise to 140% of GDP by 2035.”

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Ackerman adds, “In an environment of cutting corporate and wealth taxes, short term that can be quite positive for equity markets. However, where will you get the revenue from to actually finance a deficit like this?”

Initial global market reactions

“The first market reactions were severe,” says Herman. “The dollar strengthened materially and several asset classes were affected right away. As expected, ‘Trump Trade’ was priced into the market, but the ‘red sweep’ was not priced in. The gold price went down a good 5%, on the back of his promise to ‘end the Ukraine conflict in 24 hours’. The copper price also took a 5% smack, because Trump has made it clear he is not a fan of renewables and has promised to ‘drill, drill, drill’. Bitcoin on the other hand –which is firmly backed by Trump and his friend Elon Musk – reached a new all-time high of $75 000,” says Herman.

“Trump will cut corporate taxes, which is good in the short term for equity markets. We saw the S&P500 up 2.5%, Nasdaq up 2.5% and the Russell 2000, which contains smaller-cap stocks, up 6% and the Dow Jones up 3-3.5%. These movements, however, were a US phenomenon and speak to US exceptionalism and are not reflected in other global equity markets.”

Turning to US Treasury yields, Herman explains that it sold off by 20 basis points within a few days of the result, on top of 60 points in the buildup to Trump’s re-election.

“This is an enormous move, considering that it usually moves by only two to three basis points on any given day. Now consider that in 2022, when US yields sold off as aggressively, it throttled the equity market and equities took a step back. We haven't seen that yet. We've seen the opposite now where equities rally while bond yields are going higher. So, this higher cost of debt will filter through into the economy.”

Ledu Zhixing Wind Farm in Qinghai Province contributes to China’s goal of energy self-reliance.

Chief Investment Officer, George Herman. Chief Economist and Advisory Partner at Citadel, Maarten Ackerman.

Herman cautions that while US equity is much stronger in the short term on the back of the promise of lower corporate taxes and higher US yields, there is a fear in the market of increased overall debt levels for the US.

Impact on South Africa and other emerging markets

“The knock-on effect of a stronger dollar is very important to us in South Africa, as it places our commodities under pressure and is negative for emerging markets, ” reports Ackerman.

Another emerging market that will be hard-hit by Trump’s adversarial stance is Mexico. As Ackerman notes, “Mexico is a sensitive issue for America, specifically because of illegal immigrants. Trump will impose mass deportations and high trade tariffs.”

While the protracted trade conflicts have already made China more self-sufficient, which meant that Trump’s re-election was “no real body blow to China”, China would have to focus on finding more alternative trade partners, says Ackerman.

“First, China needs to move to a policy of self-reliance on energy or trade. That's why they're trying to stimulate consumption expenditure in the Chinese economy. If they're going to replace American trade, it will most likely be with other emerging countries, specifically in Africa. So, it's a totally new world post-Covid as to how these alliances and trade partners get put together.”

Explaining the impact of trade tensions on global supply chains, Herman says: “In this new world of re-globalisation, or de-globalisation, of new trading partners, we've abandoned the most efficient, cheapest logistical supply chains in products, for

‘friend-sharing’, trading with friends or alliances, which implies higher prices and more inflation.”

Herman believes BRICS may provide some new opportunities for South Africa in the new world order. “BRICS started showing muscle against the West over the past five years. The G7 and the BRICS are pretty much head-locked in some policy decisions. And Africa is right in the middle. It will create some opportunities for Africa and the emerging markets. President Cyril Ramaphosa was also quick to emphasise that South Africa takes over the G20 presidency in 2025, and in 2026 it will be taken over by the US. It is clear that the president wants to build relations during this period. Minister of International Relations and Cooperation, Ronald Lamola, has been quite outspoken about anti-West, antiAmerican views.” This doesn’t bode well for South Africa’s place in the AGOA trade agreement under a Trump administration.

Conclusion

“The world is entering an environment with below-average growth and sticky inflation. The trade conflict is now global. Geopolitical challenges may intensify. We are preparing for a slow-growth environment. Interest rates can decline further, but we're probably not going to go to pre-pandemic levels.”

It is therefore more important than ever to have well-diversified, long-term and weather-proof investment strategies. “Politicians come and go. There are shorter-term opportunities and we will definitely include that in our portfolios, but the thinking must always be long term and adjusted for risk.”

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Economic data

The South African Chamber of Commerce and Industry (SACCI) regularly publishes economic data relating to business confidence and trade, the SACCI Business Confidence Index and the Trade Conditions Survey. As of 2023, SACCI has been collaborating with the Bureau of Market Research (BMR) in producing the Small Business Growth Index. For more statistics, see www.sacci.org.za and www.bmr.co.za

BUSINESS CONFIDENCE INDEX – NOVEMBER 2024

Business confidence gaining traction

The broader political representation in the administration of national government has facilitated a positive assessment of economic prospects by business. This positive assessment spilled over into the business climate, improving sentiment and stability. The BCI has, since the formation of the new administration in June 2024, improved gradually. Over the year to November 2024, the BCI improved by 6.6 index points, the largest year-on-year improvement for a month since the Covid-19 restrictions were lifted in December 2022. More inward tourist numbers, higher precious metal prices and increased new vehicle sales made the most notable positive impact on the BCI in November. Lower merchandise import volumes had the only noteworthy negative impact on the BCI. SACCI noted with concern and disappointment the slow economic growth of 0.4% y/y for the first nine months of 2024, which reflects the perplexing situation the South African economy finds itself in. The strong upward momentum of business confidence, however, confirms the resolve and understanding by the private business sector to contribute and play its respective role to improve economic performance. This private sector effort must, however, be complemented by an efficient and proficient public sector. The collaborative effort between business and the public sector could see the translation of improved business confidence into investor confidence, higher and sustainable economic growth and job creation.

SACCI TRADE CONDITIONS SURVEY

Trade expectations outpace trade activity

The trade outlook remained well into positive territory, but present trade activity was still in negative territory. Although some structural economic impediments may be resolved, the poor economic performance is preventing trade from reaching its more optimal potential. However, 40% of the respondents indicated that present trade conditions were better than in December 2023. Trade conditions slowed down since August 2024 and deteriorated even further, with only 35% of respondents experiencing positive conditions in December 2024. However, the outlook for trade in the next six months improved notably, with 65% of respondents in December compared to 54% in October 2024 being positive. The sales volumes index of 37 in December 2024 shows that the majority of respondents find trade conditions demanding. Increased new orders dipped to 28% of respondents. Logistical problems are currently being experienced, mainly with rail and sea transport. Lower stock levels confirm the existing tight trade conditions. The six-month sales outlook is nevertheless at a high level, with 72% of participants anticipating better sales compared to 58% in October 2024. It is expected that both input costs and sales prices will accelerate in the next six months. As inflationary expectations may rise, it could deter an easier monetary stance and cause the SA Reserve Bank to continue a cautious approach. Despite challenging trade conditions and tight profit margins, employment in the trade sector was relatively stable.

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