SA Business Integrator - Issue 7 - March to August 2018 by Media Xpose - South African Business Integrator

South African Business Integrator

Issue 7

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N March/August 2018

March / August 2018

Nungu Diamonds:

beyond the sparkle

Clay bricks: promoting inclusive, sustainable practices

Bitcoin, blockchain and bubbles: cutting through the hype www.sabusinessintegrator.co.za

sabusinessintegrator.co.za

Maredi Technologies:

your ICT partner of choice COVER STORY

Invincible Valves:

turning challenges into opportunities

Current Affairs I Economic Development I Business Integration SABI Vol 7 Issue.indd 101

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The benefits of belonging to the RMI The RMI has represented the retail motor industry and its members for more than 100 years. It is widely recognised as the authoritative voice in the motor retail industry and, with over 7 500 members business and 13 associations, there is strength in unity.

Benefits of belonging to the RMI includes:

• Communication and Media • Quality and Standards • Labour Relations Seminars • Advice, Support and Assistance • Representation • Training • Influencing and Lobbying • Industry-specific Products and Business Benefits

www.facebook.com/retailmotorindustry Retail Motor Industry Organisation - RMI @AutomobilSA

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• The RMI is recognised in the media as the industry voice and is regularly invited to comment on industry topics by both print and broadcast media.

• The Association participates in and hosts numerous conventions and shows. • Members have access to the informative Automobil magazine and receive weekly web letters which not only facilitate two-way communication, but keep Members abreast of developments in a highly dynamic industry.

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Quality and Standards

Advice, Support and Assistance

• The RMI and its Associations represent the Industry at various South African Bureau of Standards (SABS) committees and working groups

Labour Relations Seminars

• Members have access to Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses

• Professional industrial relations advice by specialists, ensuring procedural and substantive fairness with disciplining staff.

• Support with chairing disciplinary hearings and automatic entry and representation at the CCMA, DRC and Labour Court.

• Exceptional CPA support and member assistance during defence cases

at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA). • Facilitation of complaints between RMI Members, with a complaint resolution rate in excess of 95%.

Representation

• Members enjoy RMI presentation at often volatile and disruptive centralised wage negotiations.

• Representation at various MIBCO and Industry-related Boards and committee structures.

• Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised. • Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident & Maternity Pay Fund. • Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders, such as Business Unity SA (BUSA).

Training

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Influencing & Lobbying

• Training and representation via merSETA and W&RSETA. The RMI actively drives industry-wide training and apprenticeship issues through its position on the merSETA Board and involvement with the Technica manuals.

• The RMI and its Associations are actively involved in influencing new legislation and regulations to minimise the impact on business and the industry it serves.

Industry-specific Products and Business Benefits • The RMI offers industry-specific products, tailored to meet the needs

of the industry it serves: RMI4Law: 24-legal advisory service RMI4Sure: Best-value short-term insurance RMI4OHS: Occupational Health and Safety RMI4BEE: Advice and assistance on B-BBEE matters, with an accreditation service and the compilation of a National B-BBEE register. • Industry-specific Products and Business Benefits Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the Association.

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DO BUSINESS WITH RMI - ACCREDITED MEMBERS FOR MOTORING PEACE OF MIND

Communication and Media

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Editor’s L E T T E R

The long game

“

It always seems impossible until it is done.” – Nelson Mandela

In President Cyril Ramaphosa’s first State of the Nation Address, he devoted much attention to the challenge of uprooting corruption in government. ‘This is the year in which we will turn the tide on corruption in our public institutions,’ he stated. In this regard he made two key announcements. The first is that board appointments in the public sector will be based on ‘expertise, experience and integrity’ and not, by implication, on political connections or amenability to corruption. The IoDSA is particularly pleased by this news as it has consistently pinpointed the appointment of unskilled people to boards and a lack of due diligence on those appointments as key weaknesses in our state institutions. President Ramaphosa’s second key announcement was a specific promise to remove board members from any role in procurement, something that has become commonplace in some state-owned enterprises. ‘To ensure a well-governed, ethical organisation, it is essential that there is role clarity: directors must focus on governance and not get involved in operational matters such as procurement. Doing so compromises their independence. Directors have to have unfettered discretion to make decisions in the best interests of the organisation – they cannot be influenced by other considerations, such as who should get a certain contract,’ states Parmi Natesan, executive: Centre for Corporate Governance at the Institute of Directors Southern Africa (IoDSA). The IoDSA has consistently argued that ethical institutions in both the public and private sectors alike are created from the top down, and that an organisation’s directors bear the main responsibility for ensuring that ethics are embedded in its DNA. Also generating much debate is this year’s budget speech, particularly relating to the increase in the VAT rate from 14% to 15%. While the DA is planning to fight the hike through parliamentary processes, several NGOs and trade unions are also gearing up to join the fray, stating that the increase will add to the burden of the poor. The Congress of South African Trade Unions (Cosatu) has criticised government’s approach to fix what it calls a ‘budget crisis’. In a written submission, it stated: ‘Cosatu rejects and condemns the VAT and fuel hikes in the strongest possible terms and calls for Parliament to defend workers and reverse them.’ While there seems to be a general sentiment of optimism in South Africa, and many are praising the Budget Speech for its strong focus on fiscal consolation and growth stimulation, the debates rage on. However, Steven Nathan, 10X Investments’ chief executive told media at a budget breakdown event held recently in Cape Town that, like investing, the future success of this country is a long game. ‘One thing that we have lacked as a country is a proper and credible long-term plan that we can all get behind. There is no quick-fix solution. However, if the correct measures are put in place now, we will be able to work towards a more secure and inclusive future.’

editor@sabusinessintegrator.co.za

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Contents n Cover story: Invincible Valves: turning

challenges into opportunities................................................... 8

n Interview: Nungu Diamonds: beyond the

sparkle.........................................................................................14

n Advertorial: RICS World Built Environment Forum 2018 debates key global issues...............................18 n Banking: Nedbank launches South Africa’s

first solar branch........................................................................20

n Art & culture: Imenent launches art co-lab to

consult on corporate culture..................................................22

n Building & construction: Clay bricks:

promoting inclusive, sustainable practices.........................24

n Building & construction: Sassda equips

cutting through the hype.........................................................51

n Legal: Common pitfalls of forensic corporate investigations............................................................................ 56

n Manufacturing: Is your manufacturing business functioning as a team?......................................... 59

n Marketing & media: Nielsen announces Africa’s first digital audience metric..................................... 60

n Marine & maritime: Plans to save Africa’s polluted coastlines in 2018....................................................62

n Occupational health & safety: The cost of depression at work............................................ 64

members to tap into billion-rand African projects.............28

n Occupational health & safety:

n Corporate governance: New to company

Promoting sustainable prevention in OHS.........................67

compliance? Don’t believe these four myths......................31

n Oil & gas: Oil and gas fuel West Coast growth.....70

n Corporate social initiatives: Clothing retailer invests millions to fight blindness............................32

n Real estate: Commercial property ripe

n Education: Elevating commercial professions

in Africa...................................................................................... 34

n Entrepreneurs: Youth development

essential for Africa’s prosperity............................................ 36

n Finance: How accountants can mitigate

with investment opportunities................................................74

n Retail: Garage forecourt stores meet SA consumers’ need for speed....................................................76

n Risk management & consulting: Sasria joins Santam to empower municipalities.............................78

hesitance in SA businesses.................................................. 40

n Skills development & training:

n Human resources: The working zeitgeist in 2018........................................................................................42

SA organisations are not ready for learning development.............................................................................. 80

n Interview: Maredi Technologies:

n Supply chain: Lack of skilled technology

your ICT partner of choice..................................................... 46

operators threatens logistics profitability............................82

n Infrastructure development: Stainless steel’s role in solving SA’s water woes............................... 48

n Travel & tourism: Tourism can help SA

n Investment: Bitcoin, blockchain and bubbles:

break the recession cycle in the short term....................... 84

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South African Business Integrator

Publisher

Issue 7

A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N March/August 2018

March / August 2018

Media XPOSE excellence in exposure

Nungu Diamonds:

Tel: +27 21 424 3625 | Fax: +27 86 516 7277 PO Box 15165, Vlaeberg, 8018

beyond the sparkle

Publishing Director: Elroy van Heerden elroy@sabusinessintegrator.co.za

Clay bricks: promoting inclusive, sustainable practices

Maredi Technologies:

Bitcoin, blockchain and bubbles: cutting through the hype www.sabusinessintegrator.co.za

sabusinessintegrator.co.za

your ICT partner of choice COVER STORY

Invincible Valves:

turning challenges into opportunities

Current Affairs I Economic Development I Business Integration

Photography: Chrisette

Editor Emma Dawson editor@sabusinessintegrator.co.za Editorial Contributors Brendan Cooper Christo Botes David Loxton Dr Sophia Kisting Faith Ngwenya Gareth Paterson Lesley Squires Michael Basson Mike van der Westhuizen MmatĹĄatĹĄi Ramawela Nishlen Govender Terry Murphy Marketing & Communications Manager Sarina Afonso sarina@mediaxpose.co.za Content Manager Melanie Taylor artwork@mediaxpose.co.za Design & Layout CDC Design carla@cdcdesign.co.za

Pictures: 123rf.com

South African Business Integrator @SA_Business_Mag

Advertising Sales Consultants Micheal Makhawu micheal@sabusinessintegrator.co.za Rashiedah Wyngaardt rashiedah@sabusinessintegrator.co.za Chief Financial Officer Shaun Mays shaun@mediaxpose.co.za Distribution/Subscriptions Maurisha Niewenhuys distribution@mediaxpose.co.za

South African Business Integrator A B U S I N E S S I N T E R A C T I O N P U B L I C AT I O N

Disclaimer: The views expressed in this publication are not necessarily those of the publisher or its agents. While every effort has been made to ensure the accuracy of the information published, the publisher does not accept responsibility for any error or omission contained herein. Consequently, no person connected with the publication of this journal will be liable for any loss or damage sustained by any reader as a result of action following statements or opinions expressed herein. The publisher will give consideration to all material submitted, but does not take responsibility for damage or its safe return.

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COVER STORY: Invincible Valves

Turning challenges into opportunities Pam du Plessis, the managing director at the helm of Invincible Valves, is an enterprising woman with global awards under her belt to prove it. She talks to Emma Dawson about her company’s success, its culture and the positive impact they have on young people’s lives. Products and markets

Managing director of Invincible Valves, Pam du Plessis.

At the helm Invincible Valves operates under a new-age management system with team leaders who have each been promoted from within the organisation. ‘With just five employees on each team, these leaders can forge meaningful relationships with their team members and easily identify

Photos credit: Invincible Valves

Established in 1982 by Rob Macpherson and Paul Kirchmann, Invincible Valves began operating as a valve reconditioning and rubber lining business. From inception, the company has grown from strength to strength and is now one of the top valve distributors, reconditioners and rubber liners for the South African market. ‘We have a broad array of new valves that we distribute globally, as well as its own brand, the Inval® range,’ comments Pam. Over the last few years, to keep pace with changing technology, industrial advancements, and customer demands, Invincible Valves has restructured and diversified to other industries. ‘Since the business was taken over by new management in 2013, each department has been reshaped into a simple team structure with a team leader and no more than five others in a team. We’ve also upgraded our IT infrastructure to ensure more efficiency when responding to customers’ needs. This also provides more accurate feedback, and the ability to speed up processes by submitting documents with ease,’ Pam points out.

Invincible Valves’ primary markets include the global mining industry, as well as power generation, paper and pulp, water and sewerage, fisheries, and many more. The company supplies a full range of imported and locally-manufactured low-pressure valves with all the control mechanisms they required. ‘We also offer a reconditioning service for these valves and fittings and have an in-house rubber lining facility for valves, pipes and fittings. This service is used by many of the country’s major valve manufacturers,’ Pam adds. ‘It’s Invincible Valves’ simple structure that I believe makes it easier to work within the parameters of the business,’ explains Pam. ‘This philosophy is also rolled out to our stakeholders, which means that our customers enjoy our flexibility and commitment to service excellence too. ‘We also offer a number of ancillary services that give customers the one-stop-shop deal they’ve come to expect from us.’ Valves are an essential part of our daily lives – just consider the plumbing in homes and offices as an example. Each time you turn on a tap, you’re operating a valve that controls the waterflow and enables you to open, close or control the speed of the flow. On the industrial side, valves are of utmost importance for the operations of most industrial processes that use oil, water and or gas. ‘At any given time, Invincible Valves has 90 days of stock on the floor. Our ordering process works on minimum stock levels and is replenished monthly. We have a team of technical sales personnel in the office and on the road who have combined industry experience of more than 100 years. We also have excellent working relationships and access to our principles, which enables us to offer the best advice for any query,’ Pam comments. To service the African market, Invincible Valves has agents located throughout the continent.

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COVER STORY: Invincible Valves

training needs or social issues, for example. Each team leader reports to me, and we have an open-door policy and family-value system,’ Pam insists. ‘From a governance point of view, we have a full board of two executive directors, one non-executive director, and two independent directors. This ensures good governance and consistency within the organisation,’ she adds. Being a woman at the helm of a company in a traditionally male-dominated industry has been a challenge. ‘However, each challenge has created new opportunities. So, while it’s been tough, it’s also been rewarding,’ Pam notes. ‘Initially I wasn’t taken seriously, and that was very difficult. But I decided to hang in there and learn as much as I possibly could to be able to engage in the right circles. With new levels of emotional intelligence and working in a sector with aging captains of industry also means that I’ve learnt to speak less and listen more. This way I’ve learnt a lot and can make informed decisions,’ she maintains.

After finishing school in 1988, Pam got her Diploma in Financial Accounting. She initially followed this path into the IT world of accounting software, Accpac, before joining a healthcare facility as the company’s administration manager. Now, heading up Invincible Valves, Pam is the recipient of two global awards – Enterprising Women of the Year 2017 in Florida, USA; and Moving Mountains 2017 in Lisbon, Portugal. The Enterprising Women of the Year Awards is an annual tribute to the world’s top women entrepreneurs. It is widely considered one of the most prestigious recognition programmes for woman in business. Accolade winners are recognised in seven categories and recipients of awards represent an amazing group of women entrepreneurs from across the USA, Europe, UK, Canada and Africa. Pam won her award in the Over $5 million and up to $10 million in annual revenues category. Pam’s Moving Mountains 2017 award was presented by Unitedsucces, a global business organisation of

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COVER STORY: Invincible Valves

Photos credit: Invincible Valves

credible women entrepreneurs interested in accelerating the growth of their businesses. It connects and unites women entrepreneurs to amplify positive global impact.

Philosophy and drive Pam is a widow of 10 years. She has three young adult sons, a daughter-in-law, and a beautiful grandson. ‘My philosophy in life is that “too busy” is a myth. People make time for the things that are important to them. This is how I live my life. I am a mother, business partner, managing director, counsellor and socially responsible person. This is what fulfils me and makes me happy, so I make time for these things. My passion to add value to the universe is what drives me,’ she enthuses.

Knowledge is power While Pam is usually the driving force behind Invincible Valves’ CSI projects, her staff are fully supportive and

involved. ‘We primarily focus on women and children, which is very special to me and I feel privileged to have been able to touch many people’s lives.’ Invincible Valves’ ongoing projects include a reading programme that donates dictionaries to primary school children, a mentorship programme for young budding entrepreneurs that offers support and advice on the day-to-day running of their new businesses, and a partnership with a local technical high school to provide internships within our organisation. This gives students opportunities to learn about basic business practices and acquire new skills. We extend our support to a training centre in Gauteng that trains unemployed, disabled people, and we also focus on healthcare education relating to HIV Aids, TB and general wellbeing. ‘We take these initiatives seriously and integrate these people into our business to offer them an array of opportunities. I believe these projects are essential. If every company undertook one project a year, we

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COVER STORY: Invincible Valves

“

I believe that everyone deserves a chance in life – particularly that leg up when moving from being a scholar to embarking on the world of work.

would see a significant impact on our communities. Knowledge is power. The more we share and transfer our skills, the more chance there will be of change through empowerment,’ Pam maintains.

A chance in life ‘I believe that everyone deserves a chance in life – particularly that leg up when moving from being a scholar to embarking on the world of work. Employers are usually driven by candidates having experience, but this is something you can’t buy or achieve without an opportunity. We have had great success with our intern programme and often identify talent for our own business.’ Invincible Valves has a training facility on site, and all training is provided to our staff free of charge. We currently offer the South African Valve and Actuator Manufacturers Association (SAVAMA) Working with Valves course, and a Basic Business courses. ‘Because we’re passionate about education, we extend our training to our interns and our partnered technical high school scholars.’ In addition to the SAVAMA Working with Valves course, Invincible Valves also offers SAVAMA’s Introduction to Valves, and its Control Valves courses. ‘90% of our staff attend these courses because we feel it’s important to upskill everyone so that they have a better understanding of the products the company sells.’ Invincible Valves’ custom-developed Basic Business Skills programme covers topics that include emotional intelligence, communication, and buying and selling, to name a few. ‘This falls in line with our company value system of transparency and allowing people to grow in other areas of business and life,’ Pam adds. ‘The health awareness initiatives we offer provide training and testing and include an HIV Aids Day programme in December each year, a Tuberculosis initiative twice a year, and an annual Wellness Day. These initiatives give our staff and local community an opportunity to learn about prevalent diseases and to take advantage of the free testing. Our Wellness Day covers high blood pressure, sugar diabetes, and cholesterol, among others. Again, we focus on our family value system of caring for each other and we challenge our staff to share their experience with at least one other person in their community.’

Setting the bar ‘Our internship programmes create opportunities for youngsters to gain work experience and for us to set

“

‘Our internship programmes create opportunities for youngsters to gain work experience and for us to set the bar high when it comes to how they view company culture.

the bar high when it comes to how they view company culture. I believe this is a great asset for interns to take away with them. In our case, very often our interns are offered positions within our organisation. We then move them between departments to identify their hidden talents and passions, which also gives us the great advantage of having multi-skilled employees,’ Pam enthuses. ‘My personal mentorship sessions are for students, young entrepreneurs and anyone who requires assistance with self-development and those facing tough times. I’ve studied psychology, and mentoring is very special to me. I remember how alone I felt when I entered this industry and I now do my utmost to create support structures for mentees. I mentor on a personal level, as well as in communities outside our businesses because I’m passionate about seeing people grow, rise against the odds, and turn challenges into opportunities.’ Pam concludes. n

Invincible Valves Pam du Plessis, managing director T +27 (0)11 822 1777 E pamdp@invalve.co.za W www.invalve.co.za

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Interview: Nungu Diamonds

Beyond the sparkle If we buy local we can say that we’re proudly South African – we come from here, we contribute to changing lives here, and we’re creating and sustaining jobs here. Emma Dawson talks to Kealeboga and Ursula Pule, the founders of Nungu Diamonds, about this message and how they’re changing the dialogue about diamond purchasing and manufacturing in South Africa. Over three-billion years ago, diamonds were formed deep in the Earth’s crust under extreme conditions of heat and pressure that caused carbon atoms to crystallise. The word ‘diamond’ comes from the Greek word ‘Adamas’, which means invincible – a word that also aptly applies to husband and wife duo, Kealeboga and Ursula Pule, owners of Nungu Diamonds. Married two years ago, Kealeboga and Ursula are now the proud parents of baby Amantle who has dramatically changed the way the pair view life. Mostly it’s been a catalyst for adapting their business to provide a legacy for their children. But the story begins some time ago. ‘I met Ursula during the third year of my Law Degree,’ says Kealeboga. ‘At the time I was beginning to develop an interest in

minerals and the mining industry and was fortunate to meet someone with a diamond business. He was based in Johannesburg so, in 2010, I went to meet him. He suggested that if I was interested in getting into the diamond business I’d better move to Johannesburg the following year, which was also the year I was graduating,’ he recalls. ‘My parents weren’t happy. My Dad saw me fulfilling a career as an advocate but, nevertheless, in 2011 Ursula and I moved to Johannesburg where I began my mentorship. My mentor was buying from De Beers, and manufacturing and selling diamonds to global clients. This helped me learn about how the industry works, how to get licenses, how to get a supply of diamonds, and how to establish a factory,’ Kealeboga comments.

Photo credit: Shoot You Photographical Services

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Interview: Nungu Diamonds The dream begins In 2013, with a solid mentorship under Kealeboga’s belt and the knowledge they needed, the couple launched their own business, Nungu Diamonds. With a background in fashion, Ursula worked for a short while before joining Kealeboga in Nungu Diamonds. To supplement their income, she worked part time while making clothing. Then, in 2017, with the business well established and growing, Kealeboga suggested Ursula begin working full time at Nungu Diamonds, particularly as they are about to begin manufacturing jewellery. ‘While diamonds are synonymous with South Africa, unfortunately South Africans don’t consume many of the diamonds that are manufactured and mined here. Our market is predominantly export but this is something we’re very keen to change. The reason for low local purchasing is not just because of the country’s economy, but also because people don’t know about South Africa’s diamonds, and how and why they should buy them,’ he insists. ‘We’re now moving into jewellery, but you’ll find that the big jewellers are only too happy for customers to know very little about buying diamonds,’ he adds. Kealeboga has spent time in China and Hong Kong where he says customers will tell you that they want a specific colour and carat, and they roughly know how much it should cost. ‘The Chinese public are knowledgeable about diamonds, unlike South Africans who, in a country where diamonds are mined, know little to nothing about them. We believe our job is to educate South Africans and show people that you can have a pair of diamond studs, a beautiful ring, or a necklace with a diamond pendant that doesn’t have to cost you an arm and a leg,’ Ursula insists. ‘And there’s an element of investment there too,’ adds Kealeboga. ‘You can buy a one carat diamond, the smallest available, and sell it for the same value 10 years later.’ So, rather than viewing diamonds as just an heirloom that’s passed down through the generations, people should be considering their investment value too. It’s also important to note that the value of a diamond, once set in jewellery, doesn’t devalue. Unlike gold, which when mixed with other materials to set jewellery diminishes the gold’s purity and decreases its value, diamonds maintain theirs.

Diamonds and the African continent ‘What I’m personally very passionate about is the link between diamonds, the African continent and specifically South Africa,’ says Kealeboga. ‘We believe our people need to wear diamonds because they come from here. Not all diamonds cost a million rand – there’s a diamond that can fit most people’s budgets. So, it’s a question of ensuring that people understand that they’re not just expensive. We want to change this narrative.’ He adds: ‘As Ursula mentioned, I’ve been to China and Hong Kong and on every street corner there’s a shop

selling diamonds. People walk in to buy loose diamonds and jewellery that they wear every day. The perception there is that diamonds are beautiful, not just something to buy for an engagement.’ When asked why there’s such a lack of knowledge about diamonds in South Africa, Kealeboga says that traditionally the industry has been very secretive. ‘For example, when I told my parents about my plans to manufacture diamonds they wanted to know if it’s legal,’ he says. ‘And this is a view generally associated with diamonds, particularly on the African continent.’

Lost opportunities But, you can’t blame Africa or South Africa for this perception. Diamonds have fuelled wars and people have lost lives because of them and they’re still viewed in the same light. However, South Africa is missing out because of it. From an economic point of view, diamonds sustain eight million jobs in India – a country that doesn’t mine diamonds. All the diamonds that are manufactured there come from Africa. ‘These eight million jobs should be African jobs, but perhaps to some extent our government isn’t seeing the diamond industry from a manufacturing perspective and as an opportunity to fuel job creation. They just see it at a value-added mining level. Mining does create many jobs, but there are vast downstream opportunities that are missed. Even some of the diamonds sold in jewellery stores locally are mined in South Africa and manufactured elsewhere. What a loss!’, says Kealeboga. From a manufacturing perspective, once we begin to see diamonds for the value they create, much more than just the investment alone, we need to consider what the country’s losing when we send a rough diamond to another country to be manufactured, cut and polished.

Connecting to our continent ‘We want young people to understand that while handbags are great, as part of our African story we should consider owning minerals,’ says Ursula. ‘This is a message we particularly want to get across to the ‘Afrilenials’ – the conscious African millennial generation who would prefer their hair to be natural, who express themselves with make-up or not, and who showcase African prints in their clothing choices,’ she adds. ‘We want them to consider wearing African diamonds to show their pride in where they come from. After all, if not you, then who? Who can “own” diamonds like us Africans can?’ To this, Kealeboga adds: ‘And this forms part of the new narrative we’re championing – being aware. We want people to say, “I am wearing what comes from my earth.” It’s this connectedness that we want to add value to. This new narrative is an empowerment statement: “I’m wearing a part of a continent that I feel connected to.”’ Diamonds have traditionally been marketed as an elitist product, but they don’t have to be. ‘We believe we need a different approach – focussing more on the message

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Interview: Nungu Diamonds and less on the product. Regardless of what the diamond costs, if people know the meaning behind the purchase – why you should own a South African diamond – you’ll want to purchase more because they’ll form a significant part of who you are,’ Kealeboga adds.

Provenance. Substance. Authenticity. ‘Our business tagline underpins the pillars of our business: Provenance. Substance. Authenticity. and we talk about provenance a lot,’ says Kealeboga. ‘We want people to understand that the value of diamonds goes beyond the sparkle. It’s not just about how pretty they are, but also about where they come from; who they support; the effect on the mining, manufacturing and jewellery making sectors; and ultimately the economy. If consumers and the government understand this, then people will buy them. People buy expensive foreign-brand watches and foreignbrand cars, but we urge them to consider who they’re supporting by purchasing these,’ Kealeboga insists. The succinct answer to why we should buy diamonds is in Nungu Diamond’s pillars: Provenance refers to the source – diamonds are proudly part of who you are. Substance refers to the meaning of why you buy a diamond. If you know where it comes from, if you know its connection with who you are and where you come from, then when you buy it for yourself or as a gift you can say, ‘I’m giving you a Nungu Diamond, it’s been manufactured responsibly, and it has created jobs’. It goes beyond your love for this person. You’ll also be able to pass that diamond on to somebody one day and say, ‘you see this diamond? It comes from this place in South Africa, this is what it was able to do for people’. Authenticity encompasses all the above. It’s the sincerest form of showing love, and what better way than with something that embodies these values. ‘These are the things that Nungu Diamonds stands for,’ Kealeboga comments. ‘As a young couple in South Africa, we want to be seen as diamonds ourselves, but we shouldn’t be as rare as we are! There should be more of us,’ Ursula quips. We want to inspire young people to champion what’s ours, and to be concerned about what people take away from us (such as exporting our diamond manufacturing).’ To this Kealeboga adds: ‘In some cases, we’re being led by people who don’t understand the value of the roles they’re supposed to play. If you know that South Africa produces as many diamonds as it does, and 90% of them leave our shores and go somewhere else to create value for other people, we must question why. If you know that diamonds sustain economies of other countries when yours is dwindling, how are you giving it away? Is it an information deficit perhaps? Or is there an ignorance because an inner echelon may be benefiting from the current status quo?’

Industry regulation ‘Using our Diamond Beneficiation License, we buy rough diamonds that we cut and polish (this is the

manufacturing process). The industry is governed by a regulator – set up by the Department of Minerals Resources – called the South African Diamonds and Precious Metals Regulator (SADPMR). They are tasked with regulating the industry and awarding licenses to manufacturers. ‘We buy our diamonds from De Beers, which has mining operations in four countries, and we’re one of probably 11 or 12 of their clients in the country. We also buy from the State Diamond Trader, a government entity – an SOE set up by government to facilitate the manufacturing of diamonds. They buy rough diamonds from other producing companies, including De Beers, and they offer those diamonds to licence holders. Today, I think there are about 20 active diamond manufacturers in the country. The job numbers used to be impressive at about 3 000 people, but this number has now dwindled to around 200.

Paying it forward Through partnerships, we’re working to give people a skillset that they can use in their own businesses,’ Kealeboga maintains. Kealeboga was instrumental in setting up an NGO called the South African Young Diamond Beneficiators Guild – an industry association that aims to bring more young people into the sector. ‘I sit on the board as vice president and co-founder,’ he says. ‘The purpose of this NGO is to encourage young people to enter the trade, and we offer mentorships because I want to do for them what was done for me.’ But they’re very particular about who enters the trade. ‘We’re looking for people that want to play a part in the industry. We’re not in the business of selling illicit diamonds. Every diamond we buy must have a certificate that proves its chain of custody.

Looking ahead Kealeboga and Ursula have launched their own jewellery design and manufacturing brand. The company is called Medi Yame Diamonds. Medi means ‘roots’ in Setswana and Yame means ‘my’ – My Roots. Medi Yame is a collaboration between Nungu Diamonds and Kwame Diamonds, owned by Jo Mathole. ‘We’re also working with a diamond mining company and there are grand plans afoot but, for now, this will remain a story for another time,’ Kealeboga concludes. n

Nungu Diamonds Suit 319A, SA Jewellery Centre 225 Main Street, Johannesburg, 2000 T +27 (0)11 052 4557 W www.nungu-diamonds.co.za

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ADVERTORIAL: RICS

RICS World Built Environment Forum 2018 debates key global issues On April 23 and 24, 2018, the Summit of the RICS World Built Environment Forum reconvenes in London with two days of cutting-edge debates focusing on the commercial strategies needed to harness the enormous potential of the 21st century’s people and places. Under the title of ‘Our Changing World – Urbanisation, Innovation and Civilisation’, the RICS World Built Environment Forum looks at the three driving forces of industrial transformation, urbanisation and digitalisation. Key themes include collaborative infrastructure, trade and knowledge networks; the role of intelligent technology in driving productivity; and competition and cooperation between cities and regions. Says TC Chetty, RICS country manager for South Africa: ‘The World Built Environment Forum is a global network of professionals combining knowledge, skills and resources to shape the environment global populations need.’ Delivering the opening keynote address is Tesla’s chief technical officer and co-founder, JB Straubel. A global leader in large-scale solar and energy storage and electric vehicles, Straubel will highlight the role of innovative technology in creating disruptive business models. Other speakers include Jonathan Ballon, vice president and group manager – Internet of Things, Intel Corporation; Guy Grainer, Europe, Middle East and Africa CEO for JLL; and Didier Bonnet, senior vice president and global practice leader – digital transformation for Capgemini Consulting. Chetty adds: ‘The two-day programme, developed in collaboration with internationally renowned and respected industry figures, explores the transformative impact of digitalisation on business models and the consequences for cities and the regions around them. ‘Attending the conference provides insights enabling delegates to: • Understand the trends shaping the urban environment and the interconnected sectoral risks in regional and global markets. • Understand the market forces driving foreign direct investment in real estate and infrastructure. • Gain valuable insight into real estate markets: location

strategy, occupier needs, responsible investment. • Learn best practices that make optimum use of available resources, and offer the best long-term viability for cities to attract employers and meet citizens’ needs.’

About the summit The main summit themes debate: • How development of collaborative infrastructure, trade and knowledge networks can generate inclusive wealth and wellbeing and inspire deeper regional economic co-dependencies. • The nature and scope of the Fourth Industrial Revolution and the role of intelligent technology in driving productivity across both de-industrialised and industrialising global regions. • Competition and cooperation between cities and regions in pursuit of greater prosperity and economic versatility, enhanced public health and welfare, and improved levels of liveability and environmental sustainability. n

RICS TC Chetty, RICS Country Manager for South Africa T +27 (0)31 7644645 C +27 (0)83 264 3134 E wbefbooking@rics.org W wbef.rics.org, tcchetty@rics.org

RICS is a global professional body. We promote and enforce the highest professional qualification and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve. The work of our professionals creates a safer world: we are proud of our profession’s reputation and we guard it fiercely.

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BANKING

Nedbank launches South Africa’s first solar branch in Mncwasa

In what is a first-to-market in the financial sector, the Nedbank solar-powered branch provides convenient banking to a community without banking facilities through SolarTurtle, a mobile service provider owned by members of the Mncwasa community. Opening the Mncwasa branch was a result of a partnership with the Mbhashe Local Municipality, represented by Executive Mayor, Councillor Samkelo Janda. More than 69% of Mncwasa’s community is economically inactive and depends on child support grants. Those employed are mostly teachers and smallscale entrepreneurs. The solar branch is situated in a rural area and enables the community to access financial services, such as cashless banking, and make use of digital-payment solutions through Masterpass. Masterpass is an innovative digital-payment app that is convenient and simple to use. This trusted digital wallet enables faster and safer transactions as it saves client payment information in a secure digital storage facility for online purchases at the press of a button. The app can be downloaded from the Apple, Android, Blackberry and Windows app stores. James van der Walt, SolarTurtle’s CEO, says: ‘This

Photo credit: Nedbank

In September last year, Nedbank launched South Africa’s first solar branch in Mncwasa, 60km from Mthatha in the Eastern Cape. solar Nedbank branch offers cutting-edge e-banking technology to an area where banks normally don’t go. This allows rural clients to open accounts, receive money from relatives, or even take personal loans to buy solarpower solutions for their homes. All this is done cash-free through a phone, making it safe and secure.’ Until now, there was no local banking facility in the community. Nedbank is committed to uplifting communities by offering facilities for local entrepreneurs to transact safely and conveniently. ‘As money experts who do good, Nedbank is committed to making banking accessible to all the communities in which we operate. We understand the role that banking services play in stimulating economic activity and developing communities. It is for this reason that we continue to develop innovative products and services such as the solar-powered branch, which is designed to overcome infrastructure constraints while enabling individuals, families and businesses to realise their goals and full potential,’ says Eastern Cape Provincial General Manager, Lonwabo Daniels. ‘This is a wonderful opportunity for Nedbank and we envisage it being a pilot for a potential penetration strategy into Africa,’ Lonwabo concludes. n

Nedbank Group is one of South Africa’s four largest banking groups by assets and deposits, with Nedbank Limited being our principal banking subsidiary. The bank provides wholesale and retail banking services and a growing insurance, asset management and wealth management offering through four main business operations – Nedbank Corporate and Investment Banking, Nedbank Business Banking, Nedbank Retail and Nedbank Wealth. Masterpass is an innovative, simple to use and convenient digital-payment app that enables faster transactions and safer shopping experiences. It saves payment details and shipping information in a secure digital storage facility, allowing you to make your online purchases at the press of a button.

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ART & CULTURE

Imenent launches art co-lab to consult on corporate culture Late last year, the first co-lab art exhibition between Imenent, a new era web-based performance management system, and visual artist, Zonia Nel, was launched at Slee Gallery in Stellenbosch in the Western Cape.

The exhibition launched an extended Imenent service that uses art as an intervention to help organisations understand and improve their internal cultures. ‘We assist companies to develop and grow a healthy internal culture as this impacts on employee engagement and the overall success and sustainability of the business,’ explains Adri Dörnbrack, main culture architect (MD) at Imenent. ‘Through our various HR management experiences, we find that creative ways of communicating important concepts to employees, such as conversation art, are more powerful in transferring the concepts to employees compared to ‘classroom’ interventions for specific subject matter. This intervention is fun, creative, and spurs conversation, which improves overall culture and, most importantly, the performance and engagement of valued employees,’ she adds.

Photo credit: Imenent

Adri Dornbrack and Zonia Nel.

For art-based interventions, Imenent consults with organisations and conducts internal assessments to determine positive and negative dimensions of the culture. Visual artist Zonia Nel is then briefed to paint a visual representation of the culture assessment. The painting is then hung in the organisation’s offices as a conversational art piece. ‘The painting encourages employees to discuss the culture in a more objective way,’ says Zonia. ‘These conversations are then used to determine what needs to change to improve the internal culture. After a determined time, a new painting is done that then represents the desired culture,’ she concludes. This corporate culture art intervention is an extension of Imenent’s current performance management services. To find out more, or to book a consultation, visit www.imenent.co.za. n

Imenent is a web-based performance management system. We pride ourselves on ensuring that our system is not used as just another HR tool but something that adds value to business. We do not offer a performance appraisal system, but rather a system that assists managers and HR professionals to properly manage individual performance to assist with succession and talent management strategies. Our simplified performance management system operates from a web platform that encourages relationships that align manager expectations with employee performance. This helps to build organisation character and enhance job satisfaction.

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BUILDING & CONSTRUCTION

Clay bricks: Promoting inclusive, sustainable practices By Emma Dawson

In 2017, the Clay Brick Association of Southern Africa produced the country’s first industry-wide Life Cycle Assessment. As part of a larger sustainability initiative, this assessment commits the clay brick sector to continuously improve water and energy savings and limit the use of coal as a firing fuel. In 2017, the Clay Brick Association of Southern Africa (CBA) finalised a four-year project that produced South Africa’s first industry-wide Life Cycle Assessment (LCA). ‘A first step towards improving the sustainability of building materials is to understand the extent and source of their environmental and socio-economic impacts,’ explains CBA’s president, Musa Shangase. ‘To do this, the CBA commissioned two detailed scientific

assessments to understand the environmental impact of clay brick production and use in South Africa. The independent studies were conducted by the University of Pretoria. The CBA also commissioned a social LCA, which was conducted by G1 Consulting & Associates and Equispectives Research & Consulting Services.’ An LCA quantifies the resources consumed and emissions produced over the product’s entire life cycle and then assesses the impact of this on specific

Photo credit: Clay Brick Association of Southern Africa

Sustainably designed buildings are energy efficient, water-efficient and resource-efficient. They address the well-being of the occupants by considering thermal comfort, acoustics, indoor air quality and visual comfort in the design. They also consider the impact of a building’s construction, operation and maintenance on the environment, and the environmental impact of the building’s constituent materials.

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BUILDING & CONSTRUCTION environmental aspects such as human health, climate change, and damage to ecosystems. It allows property developers and building owners to make fact-based decisions in the context of building and operating sustainable, energy-efficient green buildings. Conducted in accordance with ISO 14040 and 14044 standards with an external review to aim for the highest quality standards, the study evaluates all major environmental impacts including damages to human health, to ecosystem quality, to the contribution to climate change, and to the consumption of nonrenewable resources for the six main brick manufacturing technologies with respect to the production of 1 kg of fired brick.

“

The greatest potential for the clay brick sector to reduce its environmental impact is by educating the building sector about the need for the design of energy-efficient building and the importance of choosing suitable building materials.

Committed to sustainability The CBA is committed to sustainability in its sector and is delighted to have been co-funded by Switch Africa Green, funded by the European Union on the project ‘Promoting Inclusive Sustainable Practices in the South African Clay Brick Sector’. This grant promotes inclusive sustainability practices and will be used to explore sustainability in the sector.

Why the life cycle of a clay brick matters Clay brick structures have impressively high load-bearing capacity, and high-dimensional stability and compressive strength, and are incombustible and water resistant. Also, because of the durability of clay brick constructions, life cycle cost analysis demonstrates long-term benefits – they require little to no maintenance, they’re easy to clean, and thermal expansion and contraction is minimal throughout the year thanks to their low thermal and moisture movement. For energy cost savings, clay bricks are excellent. Their inherent thermal capacity significantly reduces the need for more expensive insulation materials between the brick leaves; and their ability to self-regulate means they keep internal spaces naturally cool in summer and warm in winter. Additionally, their thermal efficiency reduces the need for heating and air-conditioning, providing lifetime savings for property owners. Another major benefit of clay bricks is that they can be salvaged and reused when the existing structure has outlived its usefulness.

So, what did the LCA studies find in terms of the highest impact and contribution to global climate change? • Environmental impacts driven by dependence on fossil fuels The most significant environmental impacts from the production and use of a brick are the contribution to global climate change, consumption of non-renewable resources, and emissions of substances that cause respiratory diseases. All three of these impacts are a consequence of the use of fossil fuels, primarily coal, either directly in the kilns during production or indirectly as electricity during use of the brick. • A brick’s biggest impact is in its use By far the greatest share of climate and health impacts occur in the use phase of the brick. The electricity used for heating and cooling houses in South Africa has a very high impact as it is predominantly produced from burning coal. • The highest manufacturing impacts occur in brick firing In terms of brick production, the highest environmental impacts occur during clay preparation and firing. The high impacts on ecosystem quality and resources are caused by the production of coal. During firing, the main impacts come from the emissions of burning fossil fuels, either from coal mixed in with the clay mixture as internal fuel, or from coal, natural gas or fuel oil used to fire the kiln. • Kiln technology affects the brick’s impact on climate ecosystem quality, human health and resources Of the six different kiln types used in South Africa, no one technology consistently performs better across all the different environmental impacts assessed, but continuous firing technologies perform the best. There are therefore minor improvements to be made to production processes by moving towards continuous firing technologies and using higher quality, cleaner-burning fuels. However, the savings that can be achieved in this phase are minimal compared to the savings that can be made during the use phase.

The importance of design and education The greatest potential for the clay brick sector to reduce its environmental impact is by educating the building sector about the need for the design of energy-efficient building and the importance of choosing suitable building materials.

“

Clay brick structures have impressively high load-bearing capacity, and high-dimensional stability and compressive strength, and are incombustible and water resistant.

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BUILDING & CONSTRUCTION

Photo credit: Clay Brick Association of Southern Africa

The Thermal Performance Study carried out in conjunction with the LCA found residential buildings constructed with clay brick walls to have the lowest heating and cooling requirements of all commonly employed walling systems in South Africa. In the temperate climate zones, potential energy savings of 30% were found for residential buildings built of solid brick walls, while savings of 70% were found for insulated cavity brick walls. In terms of climate change impact, this is equivalent to taking between three and seven passenger cars off the road for a month for every year the building is in use. Even higher savings are evident in the hotter regions and in non-residential buildings where electricity use for air conditioning is much higher.

Predominantly positive socio-economic impact The brick industry provides employment, particularly in rural communities where it is most needed. It is also actively engaged in community development programmes, as well as being a significant supporter of SMMEs. It takes 26 man-hours to produce 1 000 bricks, which results in four jobs created per million bricks produced. An industry strength is its transparency and

communication about its environmental performance and a positive impact regarding health and safety and living conditions. Areas for improvement include providing equal opportunities for employment at higher education levels, and equal remuneration across gender and race.

Continually improving industry sustainability CBA has led research in brick production and brick building design for 54 years,’ says Shangase. ‘This information aids architects and engineers to maximise thermal comfort and energy efficiency in residential and commercial buildings. With the assistance of the EECB, several local brick manufacturers have already reduced their energy consumption since the LCA’s original data collection period.’ He concludes: ‘The LCA is part of a larger sustainability initiative that commits the clay brick sector to continuous improvement in terms of water and energy saving, as well as limiting the use of coal as a firing fuel. It offers guidance to our members who want locally-relevant statistics on which technologies offer reduced fuel use, improved air quality and low environmental impact.’ For more information, visit www.claybrick.org. n

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BUILDING & CONSTRUCTION

Sassda equips members to tap into billion-rand African projects

Last year, the Southern Africa Stainless Steel Development Association (sassda) hosted an Africa Rising Market Intelligence Briefing to provide members with key insights and top tips on how to leverage the â&#x20AC;&#x2DC;African opportunityâ&#x20AC;&#x2122; and bypass the lack of information and labyrinth of red tape that thwarts many export and investment opportunities before they even begin.

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BUILDING & CONSTRUCTION Speaking at the event, market intelligence specialist, Lesley Squires, said: ‘Further to our interactions and lobbying the Department of Trade and Industry, we want to facilitate the integration of our value chain and enable market integration between sassda members and the rest of the continent. ‘Our aim is to assist members to establish and strengthen product value chains and identify infrastructure and industrial projects on the continent, as well as to work more closely with key economies on behalf of our members. We are already seeing positive results with inter-Africa trade initiatives, and trade with our neighbouring countries continues to present opportunities for sustained growth and development with enormous potential presenting itself for future economic partnerships and investment.’

Potential already realised

Overall, Lesley noted that South Africa now has better leverage with existing regional trade arrangements and various bilateral agreements that members can take advantage of to expand and diversify their imports and exports. ‘Working with the dti’s strategy of fostering intra-Africa trade with South African companies, we advise members not to just consider exporting into Africa but rather to work together with other African countries and become part of regional value chains to add value to products through beneficiation prior to them being exported.’ However, Lesley warned: ‘Don’t go into Africa thinking you’re going to get instant business. It doesn’t work like that. We have seen that business in Africa is all about building relationships and going back time after time. One cannot rush into deals. Members will need to build longterm relationships over months, if not years.’

Government’s view Also speaking at the event, TIA manager of economic development facilitation, Kwanda Modise said: ‘The South African government has recognised that South Africa can scale up and be more focused in how we approach our engagement in terms of economic development with the African continent. We aim to contribute to increasing intra-African trade, increasing industrialisation and facilitating higher levels of infrastructure development to the continent. The approach will be to pursue an outward-bound investment-led trade strategy to the rest of Africa.’ n

Photo credit: Sassda

‘Our current successes and potential areas of investment for members is seen with projects now running in Cote d’Ivoire, Mozambique, Tanzania and Kenya. Going into Africa, we have found that many of the projects are water and sanitation, food and beverage and abattoir related, which all utilise stainless steel and, as we proceed, will come our way. These are development infrastructures lacking in Africa, as well as the sector development we are working towards in these regions as they provide enormous market opportunities for our members and export-oriented sectors of the South African economy,’ she confirmed. She outlined various projects including those in Mozambique that are finally seeing the launch of a liquid natural gas plant between Pemba and Palma in northern Mozambique, which has an estimated Investment value of $30billion (Source: Reuters). She also updated attendees on a sassda trade mission to Abidjan and San Pedro in Cote d’Ivoire that took place in 2017. ‘Much development needs to take place. For example, it currently takes up to 14 days to get a ship into the port of Abidjan to offload goods, many of which are perishables, so one can imagine the wastage that occurs with this kind of delay’. Because of this, the proposed Port Autonome de San Pedro (PASP) is of interest, particularly with its total project cost of US$1.4billion. Looking ahead, Lesley commented that the redevelopment of the Port of San Pedro, which currently only has one docking facility, will serve as a gateway into the rest of the surrounding landlocked countries, such as Mali and Guinea, that have large iron ore and manganese reserves.

Regional value chains

Sassda market intelligence specialist, Lesley Squires.

The Southern Africa Stainless Steel Development Association (sassda), launched more than 50 years ago, is made up of members that distribute, market, manufacture and fabricate products and services relevant to stainless steel. With 400 members in sub-Saharan Africa, the association provides a platform for its members to collectively promote the sustainable growth and development of the industry, with the main emphasis on stainless steel converted within the South African economy. For more information, visit www.sassda.co.za.

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Mark Nel • 064 513 2706 • info@africancontainerprojects.com

2018/03/13 12:48 PM

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CORPORATE GOVERNANCE

New to company compliance? Don’t believe these four myths Getting your company compliance documents in order for the first time can be a confusing and exhaustive task. Here are four myths you shouldn’t believe. If you want to skip unnecessary red tape and avoid hefty fines from SARS or the Department of Labour, it’s vital to tick all the boxes from the get-go. Unfortunately, because of limited compliance knowhow when you’re starting out, and grey areas and common misconceptions doing the rounds, first-timers are often thrown off track. According to Ilana Steyn, MD of Company Partners, most start-ups make the following four inaccurate assumptions about compliance documentation:

CIPC registration Simply registering your company name at CIPC does not protect it. The only way to protect your brand name under SA’s Trade Marks Act is to do a Trade Mark registration at CIPC. It’s possible to defend your brand name without the additional Trade Mark registration, but this leaves you fending for your brand using common law, which is a challenge in a court of law.

Directors and shareholders A director can be a shareholder, but it’s not an automatic association; it’s two separate titles. Shareholders are the legal owners of company shares, while directors simply head up the company’s management. It’s important not to skimp on the formalities because it’s your company’s responsibility to issue share certificates to every shareholder as proof of ownership. The CIPC does not issue the share certificates upon your company’s initial registration. You only stipulate how

many shares will be available for distribution within your company during the registration process. It’s also a good idea to create a legal shareholder’s agreement when there’s more than one shareholder.

B-BBEE (BEE) affidavit The good news is that if your business’s turnover of less than R10 million a year you don’t need a B-BBEE certificate. You simply need a B-BBEE affidavit. Your business is considered an Exempted Micro Enterprise (EME), which means you need to complete the affidavit to state whether you have 100% black ownership, more than 50% black ownership, or less than 50% black ownership in your company. If you have 100% black ownership, your company receives Level 1 B-BBEE status; more than 50% black ownership earns you Level 2; and less than 50% gives you a Level 4. Once your affidavit is stamped by a Commissioner of Oathes it serves as your legal B-BBEE certificate. When your company hits the R10 million mark, you need to apply for a B-BBEE certificate.

PAYE, UIF and COID According to South African law, all registered companies should comply with annual, bi-annual and monthly PAYE, UIF and SDL requirements. If you employ someone, you should be registered as an employer at both SARS (for PAYE and SDL) and the Department of Labour (for UIF). For more information, visit www.ptycompanyregistration.co.za. n

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CORPORATE SOCIAL INITIATIVES

Photo credit: Truworths

Seen with some of the latest state-of-the-art equipment at Lenasia South CHC are Helen Drabbe, head of CSI Truworths, Gauteng Health MEC, Gwen Ramokgopa, and Helen White of Orbis Africa.

Clothing retailer invests millions to fight blindness A new public-private partnership will impact the lives of thousands of South Africans waiting for cataract surgery. South African clothing retailer, Truworths, is investing R3.6 million towards improving eye healthcare services in Gauteng province. This investment is in partnership with international NGO, Orbis Africa, and the Gauteng Department of Health. The province of Gauteng is home to a quarter of the countryâ&#x20AC;&#x2122;s total population, 75% of which depend on the public healthcare system and are a huge burden in terms of high mortality-rate diseases. The public-private partnership supports the Department of Healthâ&#x20AC;&#x2122;s efforts to address the significant backlog of cataract surgeries in the province. The backlog is estimated to be in the region of 2 500 surgeries, with patients living in Soweto waiting up to 12 months to undergo surgery in state-owned facilities. In response to this, the Department of Health identified the need to establish dedicated cataract surgical centres that will take the pressure off Chris Hani Baragwanath Academic Hospital. A similar centre is already established by the Department in Bheki Mlangeni Hospital.

The investment from Truworths will strengthen cataract surgical services at Lenasia South Community Health Centre, a facility that serves communities living in Soweto and Orange Farm. The funding is being used to renovate the existing eye clinic, purchase diagnostic and surgical equipment, procure medical supplies, and train the full eye healthcare team. A broader impact will be increasing public awareness on the importance of eye health, and investing in research to improve the uptake of services, patient care and surgical outcomes. The Truworths-funded cataract surgical centre will reduce the backlog in adult cataract surgery and will enable the team at Chris Hani Baragwanath Hospital to focus on essential teaching and as paediatric eye health services. The newly-renovated cataract surgical centre at Lenasia South Community Health Centre was unveiled in November 2017. For more information, email Patricia.Mokoena@gauteng.gov.za. n

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Courses offered at Tshwane South TVET College are: NATIONAL CERTIFICATE VOCATIONAL *L2 – L4 •Tourism •Hospitality •Information Technology & Computer Science •Civil Engineering & Building Construction •Electrical Infrastructure Construction •Engineering & Related Design •Office Administration •Finance Economics & Accounting

“Let us help you to achieve your future”

REPORT 191: GENERAL STUDIES *N4 – N6: •Management Assistant •Financial Management •Hospitality REPORT 191: NATURAL SCIENCE (ENGINEERING STUDIES) *N1 – N6: •Electrical, Mechanical & Civil Engineering SKILLS PROGRAMMES •Clothing Production •Artisan Training •Cosmetology LEARNERSHIP •Early Childhood Development

For more info visit our website:

www.tsc.edu.za Tshwane South TVET College @tsc_tvet @tsc_tvet Tshwane South TVET College

CONTACT DETAILS General Enquiries 012 401 5000 Atteridgeville Campus 012 373 1200 Centurion Campus 012 660 8500/1 Pretoria West Campus 012 380 5000 Odi Campus 012 725 1800

Tshwane South TVET College has been selected as one of the Centres of Specialisation for the fields of Mechanical Fitter and Fitting & Turning

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EDUCATION

Photo credit: UJ CBE

Prof Mercy Mpinganjira, director of the CBE School of Consumer Intelligence and Applied Information Systems (SCIIS); Prof Hardus van Zyl, director of the CBE School of Economics (SoE); Prof Amanda Dempsey, senior director of the CBE School of Accounting (SoA); Prof Daneel van Lill, acting dean of the College of Business and Economics (CBE); Dr Diane Abrahams, director of the CBE School of Tourism and Hospitality (STH); Prof Lyal White, senior director of the CBE Johannesburg Business School (JBS); Prof Shikha Vyas-Doorgapersad, representing the CBE School of Public Management, Governance and Public Policy (SPMGP) on behalf of the director, Prof Christelle Auriacombe.

Elevating commercial professions in Africa Launched in August last year, the University of Johannesburgâ&#x20AC;&#x2122;s (UJ) College of Business and Economics is set to elevate commerce professions in South Africa. The College includes the Johannesburg Business School (JBS), one of the largest in Africa.

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EDUCATION

The University of Johannesburg’s College of Business and Economics (CBE), combining the innovative strengths of the previous Faculty of Economic and Financial Sciences, and Faculty of Management, houses six schools focusing on enhancing the profile of management education in Africa. These Schools serve 19 500 full-time students and a further 6 600 part-time continuing education students, totalling about 40% of UJ student enrolment. Speaking at the launch, Prof Daneel van Lill, acting executive dean of the CBE, said that UJ has established itself as an institution of global excellence and world-class stature, while providing accessible higher education.

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The scale and accessibility of the UJ CBE highlights the University’s drive to become an international university with the vision to serve pan-African ideals.

‘A week prior to the CBE’s launch, UJ debuted among the Top 500 global universities, ranked in the Academic Ranking of World Universities (ARWU) released by the Shanghai Ranking Consultancy. This ranking placed UJ fourth in South Africa. The scale and accessibility of the UJ CBE highlights the University’s drive to become an international university with the vision to serve pan-African ideals,’ said Prof Van Lill. Core to the CBE is its newly-established Johannesburg Business School (JBS) tthat, at its inception, is one of the largest business schools in Africa with over 6 000 students. Under the leadership of its senior director, Prof Lyal White, JBS will develop successful African leaders and managers with a focus on context, building on international networks, and research collaborations to become the leading school of African management thinking and academic rigour. The transformation of chartered accounting in South Africa is being driven from the CBE School of Accounting (SoA), headed by its senior director, Prof Amanda Dempsey. Annually, UJ produces the largest number, more than a fifth, of all successful African candidatechartered accountants in the country. The School’s programmes are accredited by major national and international industry bodies. Insight into markets facilitated by contextual knowledge and employment of information technology is the unique offering of the CBE School of Consumer Intelligence and Applied Information Systems (SCIIS), headed by its director, Prof Mercy Mpinganjira. The SCIIS already offers a benchmark Honours programme in Marketing Management in South Africa and has strong industry partnerships with national and multi-national organisations. The CBE School of Economics (SoE) is a leader in the fields of Competition and Regulation Economics, Industrial Policy, Local Economic Development and Financial Economics. The SoE hosts the SARChI Chair in Industrial Policy, the UN IDEP program, CCRED (the research centre of competition and regulation economics) and CENLED (the centre for local economic development). The SoE, headed by its director, Prof Hardus van Zyl, is ranked fifth in South Africa by the RePec academic rating system for Economics. The CBE School of Public Management, Governance and Public Policy (SPMGP) collaborates with an array of actors in African and South African developmental government processes. The SPMGP, headed by its director, Prof Christelle Auriacombe, has achieved national and international recognition as one of the most successful higher education and training institutions to build on best practices and to improve governance and management capacity. The CBE School of Tourism and Hospitality (STH), is rated 34th globally among 100 ranked institutions for research in Tourism and Hospitality Management, in the Shanghai Ranking’s 2017 GRAS, the only South African and African university to be included. The School is headed by its director, Dr Diane Abrahams. For more information, visit www.uj.ac.za. n

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ENTREPRENEURS

Youth development essential for Africaâ&#x20AC;&#x2122;s prosperity A recent report released by the research department of JvR Africa Group highlights the critical role that youth can play in driving economic change and development.

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ENTREPRENEURS youth population are unemployed. Further, if we consider those individuals who are employed but who are receiving low pay, no benefits and few advancement prospects, this statistic becomes even more alarming. In the world’s least developed countries, every year around 15 million young people enter the labour market where the majority faced with the reality of unemployment, underemployment, or vulnerable employment. If this is not adequately addressed, by 2050 Africa’s population is estimated to double in size to approximately 2.4 billion people, and the world’s largest working-age population will remain economically stagnant.

The answer Reinvention and a shift in youth development focus is essential if Africa is to move to a socially and economically prosperous state. But how can Africa move forward and adequately address this current reality? The answer is simple but requires tremendous effort from government, leaders, philanthropists, and initiatives across the continent. There needs to be a deliberate and conscientious attempt to create and harness entrepreneurism. Promoting entrepreneurial initiatives will generate millions of new jobs for the expanding workforce. With ‘strength in numbers’ a positive impact can be achieved, bringing with it transformative and sustained growth. With the correct policies, investments, engagement and enthusiasm in place, the largest generation of young people in history can become the problem-solving producers, creators, change agents, and leaders of the coming decades.

Identifying entrepreneurs

One of Africa’s prevalent challenges is also a source of immense opportunity – its people. Africa is home to the youngest population on the globe, where 200-million people are between the ages of 15 to 24 years. The United Nations Population Fund (UNFPA) reports that about 77.6% of South Africa’s population are below the age of 35 years.

Unemployment This abundant youth population can be the key that unlocks Africa’s economic potential, yet 60% of Africa’s

Without the creation of small businesses in Africa, an even larger proportion of people would be unemployed. Yet, for a business to be sustainable, Africa needs to look beyond the external barriers and focus on the people aspects behind the business. Identifying individuals with entrepreneurial potential is critical, since it has been widely confirmed that there are measurable individual differences in entrepreneurial talent. The Measure of Entrepreneurial Tendencies and Abilities (META) assesses an individual’s entrepreneurial potential. According to the META, the essence of a successful business relies on four foundational characteristics possessed by entrepreneurs. These include a combination of creativity, opportunism, proactivity, and vision.

On a knife’s edge To achieve measurable progress in Africa, entrepreneurialism is imperative. Since economic development in Africa is on a knife edge, the next few years mark a quintessential period for Africa to take advantage of and invest in the human capital so abundantly available. For more information, visit https://jvrafricagroup.co.za/. n

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ADVERTORIAL

Promoting the interests of finance and related professionals in the public sector The Chartered Institute of Government Finance, Auditing and Risk Officers (CIGFARO) is the recognised professional body for finance, audit, risk management, performance management and related professionals in the public sector. Founded in 1929, CIGFARO is the South African Qualifications Authority (SAQA) recognised professional body for financial management in the public sector. It establishes and maintains high standards of professionalism among practitioners by providing a framework for enhanced and maintained sustainable financial management and good governance in managing public finances.

Core services and functions Promoting the interests of finance and related professionals in the public sector and protecting the interests of the public through strict enforcement of the code of conduct by embracing the following objectives: • Developing and registering appropriate qualifications • Registering qualifying professionals as its members • Constant renewing of members' registrations • Assessing and promoting programmes at institutions of higher learning • Regulating activities within the public-sector finance profession and related professions via the code of conduct and a disciplinary procedure • Monitoring and tracking the continuing professional development of members • Developing and implementing practical guideline and process enhancements and best practices • Making submissions pertaining to legislation and/or proposed legislation to sector departments as and when requested. • Where necessary, to consider research and comment on existing and proposed legislation affecting the Public Sector. • Cooperating with other professional bodies that aim to improve and enhance public finance and governance both locally and internationally. • To advise the national and provincial government, related institutions, and other recognised national associations on matters affecting the public sector. • To provide opportunities and platforms for exchanging of views, knowledge and best practices among members. • Undertaking research into public sector finance and governance to promote efficiency and enhance the available core body of knowledge.

CIGFARO's advisory functions Further the interests of the public sector in the financial and related professions by advising institutions, commissions and other bodies and persons. Advise the national and provincial governments, related institution,s and other recognised national associations on matters affecting the public sector.

Member training Training is provided on all aspects of local government with a focus on finance, auditing and risk issues. We are currently rolling out training on MSCOA (Municipal Standard Chart of Accounts). Our conference assists with the continuous professional development of our staff. As the president of CIGFARO, my goals for the Institute include: 1. Helping public entities survive the current economic climate through economic growth, improved productivity, better collection rates, value for money and return on investment. 2. Assisting in reducing the rate of rural-urban migration. 3. Enhancing financial sustainability and viability. 4. Committing to the triple bottom line – assessment of all projects in terms of economic, social and environment issues. 5. Ensuring a balance in expenditure – social, economic, environmental and rehabilitative. 6. Optimising the use of technology and innovation. 7. Developing the skills and capacity of finance practitioners in the public sector. 8. Ensuring maximum service delivery and providing costeffective services. 9. Benchmarking and ensuring value for money.

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FINANCE

How accountants can mitigate hesitance in SA businesses By Faith Ngwenya, technical executive at the South African Institute of Professional Accountants (SAIPA)

Late last year, Grant Thornton published its International Business Report for the third quarter of 2017. The findings show that South African business executives continue to adopt a ‘wait and see’ approach to business because of political and economic instability in the country. Of the 100 South African business executives surveyed for the quarterly INTERNATIONAL BUSINESS REPORT, 72% confirmed that turbulence in the economy over the preceding six months affected operations and decisions, 38% were considering investing offshore, and 28% were contemplating selling their businesses.

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If your clients are taking their wealth, jobs and businesses overseas, then it has a butterfly effect that negatively impacts many South African citizens, their families, and the economy.

The problem with keeping operations stagnant and simply focusing on keeping heads above water is that we’re not solving the problem – we’re perpetuating it and adding a steady stream of fuel to a slow-burning fire. If everyone adopts a ‘wait and see’ approach, we’re not moving businesses or the economic prosperity of our country forward.

Put the spotlight on growth and success As professional accountants, we have a key role to play in changing the perspective of business owners, which can be achieved in a number of ways. At SAIPA, we’re encouraging clients to dig deep into the financial histories

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FINANCE

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Your clients need to be made aware of what they’ve been able to achieve, despite economic situations that are far outside their realm of control.

of their clients so that a spotlight can be put on what they have achieved during tough, turbulent times, economic downturns, and setbacks that have affected their industry or business specifically. Often, despite the challenges, businesses have shown growth. These are the things that your clients need to be reminded of and you should be drawing their attention to their successes and achievements. Besides being the opposite of a doomsayer and essentially becoming nothing short of a cheerleader for your client’s business mission and goals, you can also highlight viable investment opportunities within our own borders. Money can be made by investing overseas, but there’s also money to be made by investing in South African investment opportunities. Research investment opportunities that would appeal to your clients and that would align with their business operations, interests and industries to show them how they can benefit and inject money into South African opportunities. Economic upliftment and sustainable development starts at home, and if your clients are taking their wealth, jobs and businesses overseas, then it has a butterfly effect that negatively impacts many South African citizens, their families, and the economy.

Cumbersome legislation Our employment regulations are regarded as a huge barrier to entry in the country, and this is something that Government needs to carefully rethink. In September 2017, the World Economic Forum announced that South Africa had slipped down 14 positions in the World Economic Forum Global Competitive Index and restrictive labour regulations were cited as one of the reasons for this. South Africa’s unemployment rate is high, and it is disturbing. Accountants need to join forces with the appropriate unions and challenge these legislations so that we can make it easier and more attractive for companies to invest in our country; the natural result will be more employment opportunities for our people. In conclusion, your clients need to be made aware of what they’ve been able to achieve, despite economic situations that are far outside their realm of control. Show them how they have continued to grow, what they could be doing better, which areas of their business they should be investing in to drive growth, and how a big-picture mentality and positive outlook can help them continue to grow. For more information, visit www.saipa.co.za. n

South Africa is still a major driver in the global economy It’s also important to look at different economic indexes that can give your clients a better, broader perspective. Instead of waiting for the results of upcoming political events, which is essentially a short-sighted approach, delve into the indexes that are painting a much brighter picture. When compared to other BRICS, South Africa has become a major driver in the global economy and a force for change in the developing world. Context is key. As accountants, we also need to do our part in making foreign investment in South Africa more attractive. Many businesses want to start operations in South Africa for myriad reasons, ranging from our natural resources to our proximity to booming African markets.

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Photo credit: SAIPA

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It’s also important to look at different economic indexes that can give your clients a better, broader perspective.

Faith Ngwenya, technical executive at the South African Institute of Professional Accountants (SAIPA)

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HUMAN RESOURCES

The working zeitgeist in 2018 In this article we explore how to avoid cognitive dissonance between your business objectives and your staff’s motivations. ‘The shared conclusion of many articles written about the generational differences between the employees of yesteryear and the employees of now, is that the workforce today demands personal fulfilment from their jobs,’ explains Brendan Cooper, head of internal communications at New Media. ‘For staff to be engaged and invested in their jobs, they have to find value in what they do. They need to be able understand the organisation’s broader purpose and what the company they work for is doing to make the world a better place and add value to the communities in which they operate,’ he adds. Very different from the traditional mindset of working for a salary and being grateful for a job, this trend is known as value-ation. The value-ation mindset demands that people know what is going on at an organisation – internally and externally – and what the organisation stands for, which requires an ongoing conversation between leaders and staff.

This paradigm obviously needs to be a two-way conversation with empowered employees, but also equally empowered leaders, who need to balance communicating and enforcing the organisational requirements that make the bottom line work with staff culture priorities. Facebook understands how to do this. People are motivated by the power of pride in an organisation that they perceive to be doing social good, with a mission that they understand and an optimism that they can buy into, which engenders pride and job satisfaction. South African CEOs and other senior executives are also adopting new tactics and channels to ensure that

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For staff to be engaged and invested in their jobs, they have to find value in what they do.

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HUMAN RESOURCES

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This paradigm obviously needs to be a two-way conversation with empowered employees, but also equally empowered leaders.

Photo credit: New Media

they are visible and communicating business objectives with staff in a way that authentically motivates employees to achieve them. So how do you align employee motivation with company objectives? You communicate. It’s all about understanding what you want to say, why you want to say it, who you want to say it to, and then unpacking how to deliver it effectively. Staff are unceasingly hungry for this communication from their employers. New Media has seen great results with internal communications content they have produced for various types of businesses. ‘For one of our clients, we have statistics that show a 5 366-download rate and seven-minute reading time of a digimag to an audience of 6 000,’ Brendan says. ‘That’s serious engagement and it’s an indicator of staff being hungry for information about the company and getting it with content that they find easy to consume and that is relevant to them. ‘We have also seen an 85% take home rate of a print magazine we produce on behalf of one of SA’s bestknown and most innovative companies and are seeing great stats on the emailers we produce for a variety of clients, regularly hitting an open rate mark which is almost double the industry average,’ he adds. Video emailers with a message from the CEO (using his first name only) resulted in 97% of recipients saying they wanted to receive further communication. Brendan believes this was because the message was humanised through relaxed visual communication. Video also works very well to convey difficult messages when you use a people-centric approach. According to Brendan, a video interview message and visual graphs, given by an HR director responsible for wide-spread retrenchments is just one great example of successful

internal communication using video. ‘Unpacking big issues by framing the content in a people-centric manner lets the most relevant person or people in the company tell the story from their viewpoint, making the message relatable,’ Brendan maintains. Research by Willis Tower Watson showed that companies with good internal communication outperform their competitors by 3.5 times. Yet, a recent Gallup Survey showed that 82% of HR managers felt that their internal communication strategy needed an overhaul. It is becoming very clear that when dealing with the employees of today that companies that do not have a good understanding of the trends in this space run the risk of staff disengaging with their messaging. Engaged employees thrive and there’s no doubt that organisations reap the benefits of effective internal communication through increased staff retention and attraction, as well as the bottom line. n

Brendan Cooper, head of internal communications at New Media

New Media is the leading content marketing agency in South Africa. Established in 1998 and part owned by Media24, New Media connects people to brands through crafted content on a variety of media platforms. Based in both Cape Town and Johannesburg, the company’s portfolio covers the food, décor, entertainment, internal communications, health, sport and financial services sectors. New Media adds value to brands and audiences by creating content that engages, entertains, increases sales, improves customer affinity and retention, positions brands and aligns informed staff. For more information, visit www.newmediapub.co.za.

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Interview: Maredi Technologies

Your ICT partner of choice Maredi Thema, managing director of Maredi Technologies, has a big dream to become the partner of choice in the ICT sector. He tells Emma Dawson about his client-centric approach to service excellence.

Photo credit: Shoot You Photographical Services

Maredi Thema’s story begins at Wits Technikon where he studied Electrical Engineering. ‘Towards the end of our studies, companies – one of which was Telkom – visited us on a recruitment drive. Telkom’s representatives talked about development and, at the age of 19, this greatly appealed to me,’ Maredi recalls.

Out of the starting blocks ‘In December of my last year studying I joined Telkom, which exposed me to telecoms technology. I worked as a technician for five years but discovered that I wasn’t really a “spanner boy” – the guy doing the work. While I loved the technology and engineering, I didn’t want to fix things and work with my hands, I preferred being the background guy doing the planning and project management. This is when the idea of moving into sales developed,’ Maredi comments. ‘I began looking for opportunities to join a company selling telecoms test equipment and found a job as a sales engineer doing just that. I remained at the company for six years, during which time I learned a great deal about business,’ Maredi notes.

Character building and resilience There are two things that Maredi believes shaped him into the man he is today – his school life and his job as a sales manager for Africa. ‘I enrolled at Potchefstroom Boys High in the North-West Province but being a black boy just after 1994 in an Afrikaans town, at an Englishmedium school was hard. I had to learn what life was all about. My family was determined that I should attend a good school and my three years there, from Grade 10 to Grade 12, were a learning curve that taught me resilience and broadened my character,’ he maintains. ‘Selling test equipment gave me a lot of exposure to what business is all about. As a sales person, you moreor-less run your own income statement and this exposure was invaluable.’ In 2005, he registered Maredi Technologies because he wanted to secure the company name. ‘At that stage, I had no idea what I wanted to do with it, but I wanted to secure the name,’ he says. ‘I began looking for opportunities for my business and found the answer while selling a box of state-of-theart equipment. There was a missing link – the service element. I saw this as a huge opportunity and finally knew what I wanted to do – instead of just selling equipment, I could sell solutions.’ In August 2010 he launched Maredi Technologies as a going concern.

Maredi Thema, managing director of Maredi Technologies

Big ideas ‘My idea was to sell solutions and not just telecoms. I packaged it as selling ICT solutions, which meant an offering for IT (corporates), telecoms (service and ad hoc operators) and last mile (consumer or end-user such as wi-fi) customers. However, what we soon discovered was that the industry wasn’t used to full-spectrum solutions. They were accustomed to dealing with companies providing a service or a product. I wanted to package this together as a solution but, frustratingly, the industry wasn’t ready. So, we broke down our offering.’ This meant that while Maredi’s goal was to sell solutions, he carried the product and services sides of his business separately but explained to customers that it was also possible to mesh the two as a full solution offering. ‘Even today, we still predominantly sell services, but the industry is changing and becoming more interested – customers are asking for results instead of just products and services. The industry is maturing,’ he insists.

Based on partnerships As with many start-ups, the early years were tough. ‘I was working from home to keep the costs down and my wife helped me with admin.’ After his second year, things settled at a steady pace and the business began to grow. Maredi Technologies is celebrating its eighth anniversary this year, the company has a staff complement of 40 people, healthy contracts with some of South Africa’s big

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Interview: Maredi Technologies corporates, and they’re hoping for more. ‘My business model is still based on partnerships. Our motto is ‘Your ICT partner of choice’ because we want our customers to know that anything relating to their ICT needs can be managed by us – including the planning stage. We can design a customised solution for a full turnkey service. I believe that where partners are concerned, you turn up, show your face and don’t hide from challenges. Money comes later. However, my target is to achieve a turnover of R1-billion,’ Maredi says with utter conviction.

Looking ahead ‘This goal galvanises my dream, but I can’t do it alone. Everyone at Maredi Technologies must share the vision and have the capability to achieve our goal. In the last year we’ve been developing areas of specialties and have implemented an innovative business plan to incentivise our team. We need their ideas and passion to take us to the next level,’ he maintains. With its head office in Midrand (covering Gauteng, including Pretoria and the North-West Province), and branches in Limpopo and Mpumalanga, the next stage is to meet the African market. Maredi has registered Maredi Technologies Mozambique and plans to be trading there within the next six months. ‘Our internal policies have also grown. Last year we introduced a formal performance and process management system. Although we’re a small company, we have plans to take it a long way and we need to do things right, from the start. One of my dreams is to be ISO-accredited. I appreciate the process of finding the gaps and beginning to fill them in. Once we’re accredited, it’ll make life a lot easier because all the processes and policies are already in place. We’re also focused on empowering our team because these are the people who will drive our vision. I don’t micro manage. I give targets and walk away. I don’t lose focus on what needs to be done, but I give them room to achieve.’

Key advice for start ups Maredi considers the advice he’d give to others considering starting their own businesses. ‘Build up savings, take micro credit, and kept cash to feed your family during the business’s start-up phase. I’m also not a fan of moonlighting. When you try to work for a company while establishing your own business, your focus will change. It’s not about time, even if you think you have it to do both. It’s about the quality of the time and focus. Your attention for the company you work for will falter and you don’t need to burn bridges with any employer. You may be moving on, but relationships are key. One day, you may need those people.’ His final advice is to celebrate milestones. ‘Running a business is stressful and can be lonely, so remember to reward yourself, celebrate the accomplishments, and keep learning and empowering yourself. The good times and memories will carry you through the tough times.’

Maredi is now in his third year of his degree in Business Management Leadership. ‘Don’t ever take education for granted. Hands-on is great, but formal learning will carry you a long way. My wife is my business partner, she understands my pressures, and she’s my greatest supporter and motivator. She makes juggling the business, my family, and my studies possible,’ he explains.

Comprehensive ICT services Maredi Technologies is 100% black owned, with its primary goal to provide clients with turnkey solutions that are both cost effective and operationally efficient. This is made possible by the significant experience and knowledge acquired by our management team that boasts years of experience in the ICT sector. Comprehensive ICT strategies are designed through consultation with clients, and proposals and implementations are established on a per project basis, leveraging the power and expertise of strategic partners wherever necessary. Collaborating with these strategic partners ensures that client investments in specific systems are protected, and that fundamental changes to ICT systems are generally avoided.

Services • Power installation and maintenance • Network installations (RF, microwave, indoor and optical fibre) • Network maintenance (RF, microwave, indoor and optical fibre) • Network optimisation (RF, microwave, indoor and optical fibre) • IT network design, build and maintenance (fixed and wireless)

Products • Cables and accessories • Network termination equipment • Wireless products • Transmission equipment • Test equipment • Power solutions • Repeaters, DAS and TMAs • Batteries • Power monitoring and energy management solutions • Optical fibre products • IT hardware and software products • Custom design products n

Maredi Technologies 04 Liebenberg Road, Noordwyk Midrand, 1687 T +27 (0)11 074 7181 F +27 (0)86 541 8340 E info@maredit.co.za, sales@maredit.co.za W www.mareditechnologies.co.za

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INFRASTRUCTURE DEVELOPMENT

Drakenstein Municipality, in Paarl in the Western Cape, has converted to stainless steel for all its water treatment and bulk conveyancing applications.

Stainless steel’s role in solving SA’s water woes Cape Town’s dire water crisis and the rapid approach of the much-feared Day Zero is shining a light on the role that corrugated stainless steel water pipes can play in securing South Africa’s long-term municipal water supplies.

a Medium ~18mm Outer Diameter (OD) pipe, and a Large ~25mm OD pipe. The Boksburg factory currently produces a couple of thousand meters of its new range of corrugated stainless-steel piping a month but would like to triple this figure within the next few months. Inox Systems’ general manager, Eric Levi comments: ‘At the moment we are trying to get continuity in our orders and increase them as we can more than meet that increased demand, given that the actual speed of production is very quick. This means we can produce 400 to 1 000 meters per shift, per machine, at full capacity.’

Big benefits? These types of pipes provide a number of advantages when compared with conventional pipes as they are lightweight, flexible, require fewer connections and fittings, and are less susceptible to extreme temperature and corrosive environments. In addition, they have far lower lifecycle costs. For example, a higher range of stainless steel such as Grade 316 (medical) has an average lifecycle of 100 years as does one slightly below that – Grade 304. It all depends on the correct grade being specified for the specific environment. For example, soils high in chlorides or sulphurous compounds would require 316, while in more benign corrosive environments, 304 is more than adequate. Another benefit is that the price of stainless steel now compares with other metals such as copper, whereas in

Photo credit: South African Stainless Steel Development Association

After five years of research and writing, and an additional year of rigorous testing, the introduction of a new SABS standard for corrugated stainlesssteel water pipes has largely been driven by Sassda members Flexotube and INOX Systems. The standard, finalised in May 2016, stipulated among other factors the exact composition of the stainless steel to be used, specifications on flow rates, and involved comprehensive testing (pressure, vibration and oscillation) prior to the standard being awarded. Sassda’s executive director, John Tarboton says: ‘Stainless-steel water service pipes represent a simple, yet cost-effective solution to South Africa’s water crisis, especially since international case studies from Tokyo, Seoul and Taipei show that plastic service pipes (PE or PVC) have an average life of 20 years, while stainless steel service pipes can expect a minimum of 60 years. As Day Zero looms large in Cape Town, they are therefore definitely one of the solutions to consider in the longer term, given their resistance to leaks and ease of use,’ he adds. The local availability of the pipes stems from Inox Systems opening its Boksburg factory in 2014. This heralded a big shift in the operation of the business, as prior to this most of its product was imported from its sister company in Taiwan utilising the same machines that now find themselves on the shop floor in Boksburg. These machines make up three key production lines – a ~15mm Outer Diameter (OD) flexible connector,

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INFRASTRUCTURE DEVELOPMENT

The Boksburg factory currently produces a couple of thousand meters of its new range of corrugated stainless-steel piping a month

the 1970s and 1980s stainless-steel was more expensive. ‘We used to buy most of our stainless steel from abroad, but Columbus has got a lot more competitive, meaning the price of stainless steel is now like prices from abroad. This means we can be as competitive as copper pipes, but plastic is still the cheapest,’ says Eric.

figure of 13.4% versus other municipalities’ average water loss of 39%. Other sectors that hold the most potential for the use of this piping fall within the solar (heat exchangers) and the construction industry when it is specified by developers and contractors such as plumbers and architects.

The pros and cons

Looking ahead

So, why is there still such a prevalence of copper and plastic pipes at a municipal water service pipe level? Eric explains that the advent of locally-manufactured stainless steel corrugated pipes is still very new, so it will take time for people to appreciate the long-term benefits at a municipal level. ‘Copper has also been around for many years, so it is well known, and plastic is still cheaper than stainless steel. Where stainless steel can really make a difference is at the service pipe level, between domestic water meters and bulk distribution pipes, which is where most leaks occur and the most difficult section to detect water leaks.’

Sassda is working to form an affiliation with the Institute of Plumbing South Africa. Inox is now also distributes its pipes for retail to some hardware outlets and is undertaking training within individual stores and providing them with sales and marketing support. Inox Systems is also looking to expand its range to include larger sizes different diameters and applications specifically looking at gas, which is currently being tested for safety specifications. n

Drakenstein Municipality converts to stainless steel However, there are few projects where this type of pipe will be rolled out in large quantities. Municipalities are reluctant to dig up roads and replace entire pipelines because it’s expensive in materials and labour. Most current water-related work involves short-term repairs to municipal water pipes and this will be the case until large scale capital projects are approved at a municipal level. The exception to this is the Drakenstein Municipality, in Paarl in the Western Cape, that has converted to stainless steel in all its water treatment and bulk conveyancing applications and currently has a water loss

Sassda’s Western Cape manager, Michel Basson

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INVESTMENT

Bitcoin, blockchain and bubbles: cutting through the hype By Citadel’s Mike van der Westhuizen, portfolio manager; and Nishlen Govender, portfolio manager

Recent Bitcoin mania has raised a heated debate as to what the world’s largest cryptocurrency (by market capitalisation) is worth. Until recently, Bitcoin garnered attention mostly from computer science boffins and the criminal underworld, but the 1000% price rise since the beginning of 2017 is turning heads around the globe. As the famous Wall Street saying goes: ‘When even shoeshine boys are giving you stock tips, it’s time to sell.’ Is this adage warranted in the case of Bitcoin? Bitcoin’s appeal centres on the fact that it operates independently of any central bank. It is seen as the new age of global currency and payment methods. Of the roughly US$470 billion total cryptocurrency universe, Bitcoin comprises just over 40%. And although it is prominent now, it has in fact been active since 2009. Bitcoin’s rapid price acceleration since the beginning of 2017 has largely been due to the explosion of

cryptocurrency into the mainstream, the ease of accessibility to the man on the street, and a large bout of FOMO (fear of missing out) that drove the price to dizzy heights into the latter part of December last year. The technology or algorithm behind Bitcoin, namely blockchain, has far more powerful reach as a platform than Bitcoin itself, in our view. A fintech specialist describing the technology on question-and-answer site Quora said: ‘Blockchain technology creates a decentralised digital public record of transactions that are secure, anonymous, tamper-proof, and unchangeable.

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INVESTMENT Instead of a bank or other intermediary maintaining a private database of records, blockchain technology makes all records public.’ Disintermediation is blockchain’s biggest advantage: removing the middle-man ensures that users of the blockchain are in control of their information and transactions, data integrity is affirmed and, in theory at least, transaction times and transaction costs are minimised. Uses of blockchain technology in the real world include making payments (the most commonly known); supplychain management (for example, tracking your food at every step from farm or sea to table); smart contracts (including land registries); cloud storage; online voting; trade settlement; and payments of grants. Being a relatively new technology there is still much potential to be unlocked in blockchain, and many large corporations are exploring potential uses.

How should Bitcoin be valued? A key factor is to determine whether it is an asset class and, if so, what the appropriate valuation criteria to assess it might be. There are significant stumbling blocks here as there are no underlying fundamentals that allow us to price or value Bitcoin. If we assume that Bitcoin is a currency, we would try to ascertain a long-run fair value by using various models: relative purchasing power parity, inflation differentials, or interest rate differentials. But these values are impossible to ascertain for Bitcoin given the lack of central bank involvement, the absence of a domiciled area or, indeed, any linking economic fundamentals. If we treat Bitcoin as a basic security, then there are no fundamentals that we can use to assess it, leaving us unable to reach an appropriate valuation assessment. Despite this stumbling block, there is no doubt that Bitcoin has done exceptionally well. A fact that is evident if you merely consider the performance of the cryptocurrency in recent months. If we cannot estimate value using traditional criteria, we can still assess a tradeable asset based on its supply and demand. For Bitcoin, we can break down participants into two broad spheres: those using Bitcoin for trading and those who are speculators. We know from anecdotal

evidence that Bitcoin still isn’t widely used as legal tender, based on the lack of vendors accepting it and the relative charges from third-party providers that link consumers with vendors. Additionally, as a store of value, it is extremely volatile and an unlikely source for long-term wealth preservation. There is also a vast portion of trade that could be based on unreported illicit activity, but without further information it is difficult to understand the supply/demand dynamics from those users. We do believe that cryptocurrencies will be used much more in the future but, at present, this represents a small portion of global trade. If the only way we can value Bitcoin is based on supply and demand, and if those using Bitcoin practically as legal tender comprise just a small part of its demand, then we are left with a large portion of the current demand for Bitcoin being speculative. With no viable way to determine what price Bitcoin, or any cryptocurrency, should be trading at based on usual valuation criteria, should demand slump it could result in spectacular losses along the lines of those seen during previous bubbles (something which is true even in Bitcoin’s relatively short history). To fully understand how important underlying fundamentals are, consider the fact that Figure 1 does not represent Bitcoin but rather BlackBerry from the period 2006 to mid-2008, a time when the brand (within the company RIM), was absolutely soaring: it rose 525% in under three years. Since that peak the stock has lost 92% to its current price. Just consider whether you would have bought or sold the stock during the period in 2008 when it traded at a lofty price. You would consider any number of factors, including the company’s underlying fundamentals, its strategic positioning and the overall competitive landscape.

Feeding on optimism We believe that the hype and price appreciation of select cryptocurrencies belies any of the underlying traits that we would look for in a sound investment, and rather feeds on optimism regarding the future of cryptocurrencies. We cannot tell you if these currencies are expensive or not, but we believe that without this knowledge it is impossible

Figure 1: Price appreciation over a two-year period (Source – Bloomberg)

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Photo credit: Citadel

INVESTMENT

Mike van der Westhuizen, Citadel’s portfolio manager

Nishlen Govender, portfolio manager at Citadel

for us to invest in an asset class that seems to trade purely on momentum and sentiment. In addition, there are some headwinds which – at least at this stage – could prevent Bitcoin being rapidly and widely accepted. These include: • Bitcoin’s transaction processing is relatively slow, handling up to seven transactions per second, whereas service providers such as Visa and Mastercard can handle thousands per second. • The size relative to the global monetary base is tiny. • Without acceptance from regulating authorities, involvement in cryptocurrencies by large institutional players and governments will remain limited. • It is unlikely that Bitcoin will replace money in the near to medium term because governments have far too much to lose from this move. • Although Bitcoin can be used to pay for goods and services, its heightened volatility negates the definition of a currency as a store of value.

A mathematical algorithm Ultimately, Bitcoin is just a mathematical algorithm. There is no doubt that the technology behind bitcoin (blockchain) is revolutionary, but bitcoin itself requires much wider acceptance and continual improvement for

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Bitcoin’s appeal centres on the fact that it operates independently of any central bank.

price moves like we’ve seen to be sustainable. Other than its pure (but declining) dominance, Bitcoin has no distinguishable competitive advantage over other cryptocurrencies. Bitcoin is to cryptocurrencies what the Motorola DynaTAC 8000X was to mobile phones. The first of its kind is not necessarily always the best, and technological innovation changes rapidly. As there is no clear way of accurately valuing any cryptocurrency, it does not instil confidence in making any kind of rational investment decision. Momentum is a powerful force, and while the price can continue to run, the biggest risk is not missing out but rather in waking up to the realisation that Bitcoin isn’t the chosen one. Just ask BlackBerry. [Ed: Kindly note that this article does not constitute financial advice. All information and opinions provided are of a general nature and are not intended to address the circumstances of any individual.] n

A member of the Peregrine Group, Citadel Investment Services Proprietary Limited is licensed as a financial services provider in terms of the Financial Advisory and Intermediary Services Act, 2002. Citadel is a specialist wealth manager with over 20 years’ experience in providing bespoke solutions for high net worth individuals. Through character-rich engagement and building strong relationships based on mutual respect and trust, Citadel enables its clients to explore the true potential of their hard-earned money. The best fiduciary, risk and asset management expertise is used to strategise, implement and manage a financial roadmap for its clients and their family. For more information, visit www.citadel.co.za.

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LEGAL

Common pitfalls of forensic corporate investigations In 2017, South Africa experienced a flurry of forensic corporate investigations that aimed to address allegations of misconduct, accounting irregularities and even fraud within companies or government institutions. The latest investigation in South Africa pertained to the scandal-hit retail group Steinhoff whose CEO, Markus Jooste, resigned on the back of ‘accounting irregularities’. In most instances, a company will instigate a forensic corporate investigation to get to grips with what happened to the money, who was involved, and who can be dismissed or held accountable. David Loxton, partner at law firm Dentons, says this investigation is different from the police investigation that

looks at criminal issues such as fraud or corruption. He says in an investigation such as the one at Steinhoff, the team must include forensic accountants. ‘You need someone who has a nose for how accounting irregularities are perpetrated, and who recognises the warning signs as to where the money may be hidden.’ Once the team is up and running, it is critical to make a list of the allegations already unearthed, the witnesses and the potential suspects.

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LEGAL Terms of reference David warns against the pitfall of accepting terms of reference that are aimed at engineering a result in favour of the company or organisation requesting the investigation. There are recent examples of accounting and law firms falling into the trap of accepting to undertake investigations with their hands tied behind their backs. ‘It is quite easy to identify when the terms of reference have been written to engineer a favourable result,’ says David. It could be that the organisation states in the terms of reference what the investigators can do, but also what they cannot do. It is the list of ‘cannot do’s’ that gives it away. David says he has experienced instances where the entity, more often in the private sector, insists that one of their senior representatives is present during interviews. ‘The team cannot allow that. People must be able to speak freely, and if a senior manager is present they will feel constrained. Also, if the company prevents investigators from speaking to employees without one of the senior people present, it is a sure sign that the results are being engineered.’

Never compromise your integrity ‘You can never compromise your reputation or your integrity by taking on instructions that can taint your reputation or are dodgy. Your reputation is really all you have.’ The temptation to accept terms with too narrow a reference may be because of the temptation by some firms to earn fees for the sake of earning fees.

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It is critical to look at the evidence and consider whether you will get a conviction if the case is prosecuted in court.

cherry, especially with suspects. If you don’t have all the facts together to confront them, it is pretty much a waste of time. David adds that he has also noticed that some investigating teams do not even interview the suspects. They gather the evidence but leave the suspects to be interviewed by the police because of fear that they may be interfering in the police investigation. ‘Your investigation is utterly incomplete if you have not confronted the suspects during interviews,’ says David. He also warns against accepting too much assistance from the company itself. Many accept the offer from the company to let their IT-team assist with some of the evidence gathering. Internal IT employees can manipulate information. They are also not forensically trained to obtain evidence that can be presented to a court of law. David maintains that once the investigation is complete, it is critical to look at the evidence and consider whether you will get a conviction if the case is prosecuted in court. This will focus attention on what is lacking in the investigation. n

Be well prepared Another common pitfall is a lack of preparation. David says forensic investigators should be wary when an investigation needs to be done as a matter of ‘extreme urgency’. ‘I have seen teams leaping in and starting to interview people without doing the ground work properly. It is a common mistake.’ There is only one bite at the Photo credit: Dentons

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People must be able to speak freely, and if a senior manager is present they will feel constrained.

David Loxton, partner at law firm Dentons

Dentons is the world’s largest law firm, delivering quality and value to clients around the globe. Across South Africa, the Dentons team advises on all aspects of banking and finance, corporate and M&A, energy and natural resources, government, healthcare, hotels and leisure, infrastructure and transport (and PPP), and telecommunications. For more information, visit www.dentons.com/en/global-presence/ africa/south-africa.aspx.

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MANUFACTURING

Is your manufacturing business functioning as a team? Different departments operating independently within a manufacturing business means it’s difficult to share relevant information and makes it easier to get blindsided by competitors with a smarter game plan. The SAP Business One Manufacturing software solution is tailored specifically for small to medium sized businesses within the highly-competitive manufacturing industry. Light manufacturing, maketo-order (MTO), engineer to order (ETO), mixed-mode, and assembly focused businesses can all get ahead of the game with an integrated mid-market Enterprise Resource Planning (ERP) system. ‘It is ideal for companies that engage primarily in light manufacturing or lack the internal capacity for advanced manufacturing systems. It is easy to configure with existing applications and has room for customisation,’ says Craig Johnston, marketing manager at Bluekey Seidor. The package includes standard SAP Business One features, as well as specific manufacturing features that include: • lot, batch and serial control • project cost tracking • labour management • multi-level bill of materials • forecasting • multi-warehouse management capability • extensive item master management

The system assists businesses to streamline their entire manufacturing process, from production scheduling to purchasing and logistics. It is designed to help manage material requirements planning (MRP) for multi-level production processes, create resource planning scenarios to forecast demand, and generate automatic replenishment orders to prevent material shortages. Contrary to paper-based picking systems, stock can be scanned out and the information is quickly passed to other departments for required checks, reducing the risk of human error, which protects margins. This reduces the time needed for manual stock revaluation. The ability to track inventory levels in real-time means that inventory is optimised, which gives companies the advantage of reducing inventory-carrying cost, while minimising the risk of stock outages. Another benefit is the complete customer view it offers across sales, distribution and financials. ‘This certainly helps businesses with their customer retention and identifying opportunities to expand. Managers can keep their eye on the ball and will have less chance of getting penalised because someone forgot to, for example, save details of the last communication with a customer,’ Craig concludes. n

Bluekey Seidor is a member of the Seidor group of companies – a multinational IT integrator and systems provider with a wide portfolio of products and services covering consulting, infrastructure, implementation, development, maintenance and support. Bluekey Seidor is also the most successful and fastest growing SAP Business One partner in Africa with a reputation for on-time delivery of complex, as well as simple, integrated business management solutions to SMEs. The company is founded on the value proposition that successful implementation of ERP and business management solutions brings real and tangible benefits to business owners by driving efficiency, profitability and growth while giving management effective control and visibility. For more information, visit www.bluekeyseidor.com.

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MARKETING & MEDIA

Nielsen announces Africa’s first digital audience metric The entrenchment of Nielsen’s Digital Ad Ratings in the South African media market heralds a new era of audience-based advertising metrics where advertisers now know who, as opposed to just what, consumers engage with digital advertising across screens and publishers. Digital Ad Ratings (DAR) is powered by aggregated, anonymous information from the world’s largest third party, demographic databases and Nielsen’s industryleading calibration sources. Its real strength lies in the provision of demographics, unique audience, reach, frequency and gross rating points (GRPs) for a campaign’s total digital audience across computers, tablets and smartphones. This is also in a comparable manner to TV, enabling advertisers, media agencies and publishers to maximise their advertising reach across digital platforms. Nielsen South Africa watch head, Terry Murphy says: ‘DAR provides transparent, actionable audience

measurement for digital advertising. Until now, audience measurement has been limited to impressions served or unique audience and demographics from panels that do not necessarily represent the digital landscape.

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The tool empowers clients to measure campaigns, irrespective of size or where they are placed, from a neutral, independent stand point.

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MARKETING & MEDIA

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Until now, audience measurement has been limited to impressions served or unique audience and demographics from panels that do not necessarily represent the digital landscape.

‘The tool empowers clients to measure campaigns, irrespective of size or where they are placed, from a neutral, independent stand point. DAR also offers standardisation and accountability and helps advertisers and agencies to gauge return on investment for every rand they spend online. In addition, publishers and platforms can also show their performance to clients based on the actual audience they reach, rather than click-throughs,’ she adds.

Independent 3rd party verification Nielsen first launched DAR in the US in August 2011, and the solution is now widely available in 29 markets, with South Africa being the first on the African continent to launch the tool. One of the biggest strengths of the DAR currency is that it provides an independent measurement service to the industry. This leads to greater transparency by preventing ad fraud and allows for better audience targeting. It also enables tracking of publishers on their performance, in terms of their accuracy in reaching a desired target market, against global norms. These norms are based on industry data over cumulative campaigns, run over time. ‘The norms are based on many campaigns measured globally and are a good benchmark to assess a campaign. Using the DAR metrics, one can now optimise investment based on performance to achieve the stated targets,’ Terry clarifies.

The solution then provides overnight details of a campaign’s full digital audience across computers, tablets, smartphones and connected devices (Smart TV, PS4, apple TVs, etc) and the ads specifically served on these platforms and gives users the options to view Unique Audience by Age and Gender, not just impressions.

Reality check Looking at the context that DAR operates within, Terry admits that digital initially went through something of a honeymoon phase, which saw a lot of advertisers hopping on to the digital bandwagon. Unfortunately, too many digital ads are still missing the mark – with 50.1% of impressions not seen (Source: IAS Viewability Benchmarks, Q2 2016) – which has undermined the perceived effectiveness of the medium and brought a need for greater accountability. Terry adds: ‘The advantage of DAR is that it brings the same rigour and accountability to digital that exists in TV advertising and measurement, and creates accountability and comparability for brand marketers, advertising agencies and publishers who have been seeking measurement to better understand the true audience of their digital campaigns across devices.’ n

Anytime, anywhere access Photo credit: Nielsen

The DAR interface is easy to use and gives users greater access to data and the resultant ability to analyse, assess, and apply that data in a strategic manner. Clients and agencies have access to overnight data, which provides transparency via a Live Dashboard. The web-based interface allows users anytime, anywhere access through their unique login and doesn’t require any software installation for its use.

Nielsen South Africa’s watch head, Terry Murphy.

Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content – video, audio and text – is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

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MARITIME & MARINE

Plans to save Africa’s polluted coastlines in 2018

Microplastics, chemical and agricultural runoff, oil, sewage and solid waste are contributing to the pollution of much of the continent’s natural resources, warns the African Marine Waste Network (AMWN). In a bid to face the looming crisis head-on, numerous African countries are putting their data and resources together. At the inaugural African Marine Waste Conference held in Port Elizabeth in July last year, 200 delegates from nine African states and a further 10 countries from around the world got together to develop policies to deal with this ever-growing global problem. As African economies grow, so does the accumulation of waste. And waste management is not keeping up with rising consumption. However, the good news is that when properly managed, waste has value: it can create jobs, open doors to education, encourage public participation and promote tourism. PETCO (the PET plastic recycling company) believes the African Marine Waste Network has great potential to bring together key stakeholders across the continent – from government to the private sector, from academia to brand owners, from retailers to consumers – to jointly develop and implement plans to address the challenges presented by waste in the marine environment. Says PETCO CEO, Cheri Scholtz, ‘We view the Network – the first of its kind to focus on the prevention and mitigation of marine pollution in Africa – as a gamechanger. Plastics and other pollution is one of the biggest challenges currently facing the planet. The accumulation

Photo credit: PETCO

The oceans have become the world’s biggest rubbish dump – and Africa’s coastlines are under siege.

of plastics waste and other debris on land, and its leakage into the sea is a growing, costly problem. We can and must work together to solve this crisis.’ Partnering with The Sustainable Seas Trust (SST) to establish the communications hub for the AMWN, PETCO supported the conference by presenting on both the importance of data in strategic decision-making, and the role of consumers in moving to a circular economy (where resources are in use for as long as possible then regenerated into products and materials at the end of each service life). Major outputs of the conference include the continued development and expansion of the AMWN to include all stakeholders, and the document entitled Strategy for Marine Waste: Guide to Action for Africa. This detailed document provides the foundation for the Network’s next steps, which include growing the resource base to support the Network throughout the coastal and island states of Africa, building up a strong internal team to meet Network requirements, and growing a resource base of information, interactive maps and educational toolkits. ‘Creating a sustainable future requires fundamental changes in attitudes and behaviour among all groups – from government and industry, to the man and woman on the street – taking responsibility for their specific role in transitioning to a circular economy. This is the future PETCO is working to create,’ Cheri concludes. For more information, visit www.petco.co.za or www.sst.org.za/sst/ the-organisation. n

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OCCUPATIONAL HEALTH & SAFETY

The cost of depression at work In 2016, the IDEA study, carried out by the London School of Economics and Political Science found that depression costs South Africa more than R232 billion or 5.7% of the country’s GDP because of lost productivity, either through absence from work or attending work while unwell. The stats relating to depression at work are significant and, because of this, last year’s World Mental Health Day focused on mental health in the workplace. Dr Sebolelo Seape, chairperson of the Psychiatry Management Group (PsychMG), says organisations and individuals need to become more aware of the reality and impact of mental health in the workplace. ‘With more than 9.7% of South Africans (or 4.5 million people) suffering from depression, the chances are that the person next to you in the office may be depressed. It’s the duty of individuals, organisations and colleagues to fight the stigma associated with mental health issues.’

Impact on productivity Depression has a significant impact on productivity, which aggravates resultant problems at work relating to relationships with colleagues and line managers. ‘Depression causes memory problems, procrastination, extreme fatigue, difficulty concentrating, anxiety, fear and panic that add to work-related stresses and cripple the output from the employee.’ Dr Seape says that the cost of presenteeism, those at work while suffering from depression, has the most significant impact. It equates to a loss of 4.23% of the country’s GDP and, based on a world-wide study, the

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OCCUPATIONAL HEALTH & SAFETY proportion lost to South Africa’s GDP is the highest in the world. ‘In South Africa, employees are likely to keep working during periods of depression, impacting their productivity and performance at work. This can be because they’re afraid of losing their jobs, being ostracised from colleagues, or that they lack mental health knowledge and don’t understand why they’re experiencing spells of being unwell,’ Dr Seape explains.

Stigmatism ‘Even those who take a sick day here and there because they are not mentally up for it, are likely to be self-diagnosing and their perceived coping mechanism will draw negative attention. In addition, they could be losing out on the support structure offered by their employer, putting their career and relationships with colleagues at risk.’ She says that taking a few days off but only ending up sitting at home doing nothing will not help anyone cope when returning to work. ‘Although depression (except in severe, chronic and debilitating cases) is not a disability, it can cause impairment and have an impact on daily life from sleeping to work, concentrating, regulating emotions, or caring for oneself. It needs to be addressed via the correct channels. You need to work with your medical doctor and psychiatrist to determine the best treatment and how to manage your time off, special needs required at work or flexible working hours. Discussing the issues with your line manager or human resources department and finding out the options available to you might alleviate a lot of the anxiety.’

A two-way street ‘You can’t expect the person suffering from depression to be the only one to be held accountable. The onus is on employees to seek help, discuss the situation with a line manager, HR manager or dedicated mental health staff member, and to comply with treatment, medication requirements and lifestyle changes. It is equally the responsibility of employers, who have a legal responsibility to the welfare of their staff. However, the fact that many employees in South Africa don’t report their depression to their employer is rather worrying.’

Legal protection The law in South Africa states that an employee with a mental health condition has a constitutional right to equality, human dignity, reasonable accommodation and fair labour practice. An employer cannot demote, transfer or reduce the salary of a person because of a mental health condition.

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It’s the duty of individuals, organisations and colleagues to fight the stigma associated with mental health issues.

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Organisations and individuals need to become more aware of the reality and impact of mental health in the workplace.

‘The Employment Equity Act protects employees in the workplace but only to an extent. Since the act can’t possibly list all conditions, it leaves the employer with the power to decide which constitute a disability and which do not. Additionally, the ‘reasonable accommodation’ law that refers to flexi-time, a quiet office space, reduction in workload or increased support, is also based on the word ‘reasonable’. The law cannot prescribe to an organisation what is and what’s not reasonable. So, if the employee suffering from depression needs to receive special accommodation, the employer can simply say that, for example, their core business does not allow for flexible working hours, leaving the employee to either leave the employment or wait to be worked out,’ she adds. ‘Therefore, it’s up to the employer to decide how “serious” the condition is to warrant any form of accommodation. And although the law can legislate against discrimination it cannot rule against stigma. Many who suffer from depression fear that the disclosure of their condition makes them vulnerable and that they may lose their jobs or be the first to be selected during times of restructuring or retrenchment.

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Depression has a significant impact on productivity, which aggravates resultant problems at work relating to relationships with colleagues and line managers.

An accepting culture Stigmatism is a culture that can only be changed from within an organisation, not enforced by the law.’ Dr Seape says workplace attitudes that promote acceptance and openness about depression would have a significant impact on improving workplace productivity while openness and support from managers will foster a socially-accepting attitude towards those suffering from depression. ‘If depression is continuously seen as a weakness and something that people make up to receive special treatment or paid days off work, or those suffering fear for their jobs, then neither the stigma associated with depression nor the lack in productivity and loss in revenue will change,’ she concludes. For more information, visit www.sasop.co.za. n

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OCCUPATIONAL HEALTH & SAFETY

Promoting sustainable prevention in occupational health and safety By Dr Sophia Kisting (NIOH executive director), Prof Jim Phillips, Prof David Rees and Ms Shanaz Hampson

To control hazards you must be able to identify and measure them. The National Institute for Occupational Health provides laboratory-based, discipline-specific specialised services to industrial clients and government to offer occupational and environmental health and safety services for the public, private and informal sectors. have research as a core function. This research is often interdisciplinary because of the complexity of modern workplaces. The NIOH has a proud research record of over 50 years. During this time, it has expanded its research mandate to not only focus on mineral particles and the health of miners but also to include diverse topics and research programmes. To fulfil its role as a centre of excellence, the Institute continues to conduct research and create publications on traditional and emerging issues challenging occupational health for the benefit of workers and stakeholders.

As Early as 1885, the pioneering miners of the reef suffered from chest disease because of the dusty conditions in which they worked. South Africa became the centre for research into mining-related diseases and this was acknowledged in 1930 when Johannesburg hosted the first International Silicosis Conference. Following this work, the Pneumoconiosis Research Unit (PRU) came into being in 1956. Over the years the role of this unit has expanded not just to investigate disease in the mining industry but to look at all aspects of occupational health across all industrial sectors. Following its 60th anniversary in 2016, the institute is now named the National Institute for Occupational Health (NIOH) and is a division of the National Health Laboratory Service (NHLS). The NIOH is a public health institute that focuses on providing occupational and environmental health services across the public and private sectors, and the informal economy. This is primarily to improve and promote workersâ&#x20AC;&#x2122; health and safety but very importantly to be a consistent catalyst for a mind-set change towards greater prevention in Occupational and Environmental Health and Safety. The institute achieves this through its mandate of knowledge generation and innovation, teaching and training activities, and service delivery.

Service delivery To control hazards you must be able to identify and measure them. The NIOH provides laboratory-based, discipline specific specialised services (including advisory and information services) to clients in many industrial sectors, government departments and trade unions. The Instituteâ&#x20AC;&#x2122;s laboratory services include asbestos identification and counting; diagnostic lung pathology; analytical chemistry (e.g. for biological monitoring specimens); the identification of components of dusts (respirable crystalline silica in particular); microbial air sampling; allergy diagnostics; nanoparticles and invitro

As a World Health Organization Collaborating Centre for Occupational Health, a centre of excellence and a referral institute, the NIOH engages in activities that generate and improve local, regional and international knowledge through research in the fields of occupational and environmental health and safety. This is in line with national priorities and those of the African region. The Institute collaborates with local and international institutions of higher learning to redress the legacy of occupational and environmental health issues throughout Africa. New knowledge through research is fundamental to a better world of work and the reason why global national institutes for occupational health around the world

Photos credit: NIOH

Knowledge generation and innovation

Occupational Hygiene assistant evaluating airflow direction using a smoke test.

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OCCUPATIONAL HEALTH & SAFETY

Occupational hygienists at NIOH conducting respirator fit testing on employees.

workers so that they maintain optimal health, and even to assist employees with non-occupational related illnesses to achieve higher levels of health and wellness. The Sustainable Development Goals (SDGs) adopted by the United Nations in September 2015 include decent work, good health and wellbeing, gender equity, youth employment, sustainable economies, and sustainable environments among their goals. Its objective was to produce a set of universally-applicable goals that balance different dimensions of sustainable development mainly the environmental, the social, and the economic. The SDGs are intended to promote human rights, greater equity, peaceful and inclusive societies, create decent and sustainable jobs, and address the enormous environmental challenges, including climate change. Environmental pollution secondary to industrial activity contributes enormously to the burden of noncommunicable diseases in many countries including our own. The NIOH strongly believes that this should constitute an important part of deliberations on effective and efficient interventions at workplaces.

Looking ahead

Lung Dissection to detect disease at NIOH Pathology Laboratory. risk assessments. Among the discipline-specific services are occupational medicine, occupational hygiene, occupational toxicology, immunology and microbiology, and occupational epidemiology. Information services are also a core service of many national institutes of health around the world and the NIOH is no exception. Its unique library and information services provide occupational health professionals, occupational hygienists, industry, labour and academics with information that cannot be resourced elsewhere on the continent.

Leading by example The World Health Organization (WHO) defines health as ‘a state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity’. In keeping with this broad definition, occupational health aims to maintain the highest level of physical, mental and social well-being of workers in all occupations. This is primarily done by ensuring that workplaces are healthy. This, in turn, means that workplace hazards (which pose significant risks) are promptly and accurately identified and controlled to protect the health of workers. However, the sole purpose of occupational health is not only to ensure that people who come into the workplace do not acquire illness, but also to safeguard the well-being of

The NIOH plans to contribute more to addressing the decent work deficit in our country and to supporting efforts related to inequality at work. Furthermore, the NIOH needs to support all efforts to nurture a culture of sustainable prevention of occupational injuries and diseases as well as non-communicable diseases that may be exacerbated by conditions of work. Important areas that require more attention relate to gender concerns at work, workers who may be considered more vulnerable, including migrant workers, subcontracted workers and workers with disabilities. The Institute plans to take a lead in the management of workplace stress as it has identified and recognised that this area requires more study and service development. As a result, the NIOH has established a Mental Health Unit in its Occupational Medicine and Epidemiology Division. This unit has begun research into occupational stress in South Africa and plans to support both employees and employers in their efforts to reduce this increasingly common, and serious, occupational health problem. This involves developing programmes and approaches to identify and mitigate risk factors at organisational and individual levels to create workplaces that are healthy, safe and ultimately sustainable. n

National Institute for Occupational Health – NIOH T +27 (0)11 712 6400 E info@nioh.nhls.ac.za W www.nioh.ac.za

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OIL & GAS

Oil and gas to fuel West Coast growth The oil and gas sector is the fastest growing in South Africa, and a slew of recent announcements show that the vision for the Saldanha Bay in the Western Cape is already bearing fruit.

Royal Bafokeng Holdings is involved in two oil and gas projects in Saldanha Bay that could outlay more than R4 billion. In August 2017, Phase 1 of the Sunrise Energy liquid petroleum gas import facility terminal, costing R1 billion, was officially launched. According to Sunrise Energy’s CEO, Pieter Coetzee, the next two phases will cost R200 million each, while a road-to-rail facility would be around R50 million. Royal Bafokeng’s CEO, Albertinah Kekana, says that Sunrise Energy’s LPG import and storage terminal is the largest in Africa. Royal Bafokeng’s second Saldanha project is a R2.6 billion oil tanking venture, already under construction and due for completion by 2019. Albertinah comments: ‘When completed, it will be the only dedicated oil blending and storage facility in Africa.’

Wesgro recently announced that in 2015, the oil and gas sector of the Western Cape economy sustained 7 120 direct jobs, and 6 120 indirect jobs in the province, and added R1.5 billion to the provincial economy in 2015. MEC for Economic Opportunities, Alan Winde, notes that Saldanha Bay is at the heart of this success and is currently servicing 82% of the South African market – its proximity to the Angolan and other oil fields being a factor in its favour. Mozambique’s oil fields provide further potential. Laura Peinke, executive: business development and Saldanha Bay Special Development Zone adds: ‘A recent report by Wood Mackenzie reveals that more than 15 major upstream projects reached final investment decision stage during 2017, one of which is the Coral FLNG project by ENI in Mozambique.’

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OIL & GAS

“ Niall Kramer, chief executive director of the South African Oil and Gas Alliance (SAOGA) comments that they meet with at least two international investors each month, while Alan Winde confirms that SAOGA and the Saldanha Bay Industrial Development Zone (IDZ) host more than four interested delegations a quarter. ‘Most recently, a French delegation of maritime companies met with local companies to explore partnership opportunities and areas of growth in projects such as port infrastructure and specialist fabrication,’ he adds. Saldanha has long attracted a variety of businesses, with the oil and gas players the latest to take advantage of being in a port larger than those of Durban, Cape Town, Richard’s Bay and Port Elizabeth combined. Leading compressor and generator hire company, Rand-Air recently opened a branch in the IDZ, and with Saldanha Bay the only dedicated iron ore export facility in South Africa, the Sishen/Kolomela-Saldanha iron ore export channel sees trains pulling 342 wagons of iron ore arriving every nine hours. The ore is loaded onto ships waiting at the ore quay or stockpiled at ArcelorMittal. Wesgro estimates that the Saldanha Bay IDZ has the potential to contribute 86% to the gross geographic product (GGP) of the Western Cape, creating around 12 000 new jobs.

Wesgro estimates that the Saldanha Bay IDZ has the potential to contribute 86% to the gross geographic product (GGP) of the Western Cape, creating around 12 000 new jobs.

In 2016, standing committee chairperson on Econ Development, Tourism & Agriculture, Beverley Schäfer, said, ‘The development of the SB IDZ forecasts R53.4bn cumulative contribution to the WC GGP by the end of 2020, with an approximate R8.2bn in cumulative taxes back to the national fiscus.’ The impact on the area is already being felt, with property prices and rental demand soaring. According to Lew Geffen Sotheby’s International Realty, house sales between 2013 and 2016 showed an increase of nearly 300% (291.92%) in Saldanha alone. And positive effects are expected to be experienced in neighbouring towns, for example the popular holiday town of Langebaan, 30km from Saldanha. Says Dries Venter, Langebaan’s Ward Councilor: ‘The development of the IDZ in Saldanha will have a direct impact on Langebaan by stimulating housing demand and positively impacting on the tourism and leisure sectors. Increases in possibly higher guesthouse occupancies and support for restaurants and retail will balance out economic activity all year. Businesses will no longer be reliant on the festive season, Easter and school holidays. This will have a positive multiplier effect on job creation and the growth of Langebaan, which will hopefully attract further services to support the growing population.’ Langebaan is well equipped to serve the expected boom, with facilities such as the 18-Hole Gary Player Design’s Black Knight golf course and a host of other facilities offered at the Langebaan Country Estate. ‘The IDZ in Saldanha has already impacted businesses in Langebaan – we’ve seen a definite increase in accommodation, conferencing and leisure interest from businesses there, and are enjoying introducing our new neighbours to our beautiful corner of the West Coast,’ says Kate Richardson, Langebaan Country Estate marketing manager. ‘It’s not surprising really, we have a great offering and are just half an hour from Saldanha. Once the IDZ is at full capacity, the spin offs for Langebaan will provide even more business and job opportunities for the whole area. It’s a very exciting time.’ n

Langebaan Country Estate, located in the heart of the West Coast, is a 450-hectare eco-estate that offers an exceptional living experience at all levels. The Estate offers a harmonious balance of sport, leisure and conferencing facilities, set against the spectacular West Coast scenery. Whether you’re planning to play a round of golf, toast a celebration, or just need some rest and relaxation, you’ll find it all within the Langebaan Country Estate. For more information, visit www.LCE.co.za.

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REAL ESTATE

Commercial property ripe with investment opportunities Following years of low price growth and stagnant sales, the property market in South Africa remains unfavourable for real estate agents and sellers. However, this depressed market provides many opportunities for investors if properties are carefully chosen with thorough due diligence and a long-term investment plan in mind. Christo Botes, executive director at Business Partners Limited (Business/Partners) says that the depressed property landscape is the result of several factors, with the most significant being the overall anaemic state of the South African economy. ‘With household spending under stress, businesses under pressure, an overall unemployment rate of 27.7% and GDP growth of below 2%, investors with large deposits and financiers eager to extend property loans are scarce – especially following the downgrade of South

Africa’s long-term foreign currency debt,’ Christo notes. He adds that real estate has also become a less desirable asset class following the 2008 global financial crash. ‘This is true among global and local investors. The net result is that property buyers in South Africa will find themselves in a relatively open playing field, with lots of options from which to choose.’ Christo says that prospective investors who are considering purchasing a property should keep the following ten points in mind:

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REAL ESTATE

1. Location Certain areas are more affected by the economic downturn, which is why location is imperative. Property values in metropolitan areas are more favourable as they are more resilient to economic fluctuations. 2. Affordability One of the biggest mistakes that inexperienced property investors make is to fixate on the bond-repayment figure alone. Rates, levies, utilities, maintenance and security costs must all be factored in. It is also very important to test various scenarios to see if the investment is still affordable when interest rates or other costs increase.

Remember not to take the municipal rates that the previous owner has been paying as a given. The municipality adjusts rates according to the sales price as you register the purchase of the property. 3. Deposit The bigger the deposit, the lower bond repayments will be. However, this can be a difficult calculation for business owners. They must consider the opportunity cost of taking the cash for the deposit out of the business â&#x20AC;&#x201C; it may be more lucrative to keep the money in the business compared to the savings gained from having an increased deposit. 4. The cost and supply of utilities Electricity and water, once a given in nearly all formal properties in South Africa, is no longer to be taken for granted. Conduct a careful study of the reliability of the supply, its costs, and the availability of backup systems. 5. The cost of maintenance It is easy to underestimate the cost of maintenance, especially in old buildings that may seem to be a bargain. Be sure to do an accurate survey of the state of repair of the building. 6. The cost of security The buyer may need to invest a large once-off installation such as an electric fence or add the ongoing cost of around-the-clock security if the property is particularly vulnerable to crime. 7. Access Ease of access can be key to making a property investment worthwhile. Consider issues such as road infrastructure, as well as parking, congestion, and the proximity of public transport. 8. Defects Calculating the ongoing maintenance of a building is one thing but ensuring that there are no hidden defects in the property is another element that must not be neglected. Make a careful study of the water and electricity connections to the property, the state of the building itself, the infrastructure such as air conditioning, fibre connections, and cell phone coverage. 9. Approved building plans Many investors have had the misfortune of buying a property only to be slapped with a demolition order because the seller built without the requisite approval. It is advisable to request the approved building plans of the property before it is bought. 10. Sectional title If an investment is part of a sectional-title scheme, it adds another layer of due diligence. Make sure that the body corporate that runs the complex is well managed and healthy. It is also vital to view the body corporateâ&#x20AC;&#x2122;s financials. n

Business Partners Limited (BUSINESS/PARTNERS) is a specialist risk finance company for formal small and medium enterprises (SMEs) in South Africa and selected African countries. The company actively supports entrepreneurial growth by providing financing, specialist sectoral knowledge and added-value services for viable small and medium businesses. For more information, visit www.businesspartners.co.za.

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RETAIL

Garage forecourt stores meet SA consumers’ need for speed The increasingly time-starved nature of consumers’ lives is driving the evolution of South Africa’s R35-billion convenience retail sector, which currently commands 10% of total market retail spend. These findings stem from Nielsen’s broader 2016 to 2017 South Africa Shopper Trends report, which found that the popularity of this store format is because of ease of use and convenience, making it the channel of choice for weekly on-the-go consumption purchases, late night shopping, and everyday emergency purchases. This means that despite South Africa’s current pressurised retail environment and consumers having less to spend on impulse purchases, there is excellent potential for growth within branded garage forecourt stores for example, Engen Quickstop, BP Express and Caltex FreshStop and branded superettes such as Pick n’ Pay Express, USave and 7-Eleven. Nielsen South Africa’s head of retailer services, Gareth Paterson says: ‘Time is precious, and shoppers are looking for a store that is accessible. Retail stores on fuel station forecourts are meeting this need with their proximity to shoppers’ homes and work, longer operating hours, and their growing range of products and services.’

So much more than a store The reality driving this growing interest is that this format has gone beyond pure impulse or top-up purchases such as milk, bread, sodas, snacks and cigarettes. It’s expanding into broader product ranges and service areas that include bakery, fresh and convenience foods, and beverages including speciality coffees. ‘Those stores that offer ready-prepared foods and beverages that can be consumed on-the-go are preferred by time-strapped individuals,’ Gareth comments. He adds that given South African shoppers being driven by a strong need for convenient access, they are also looking for differentiators such as ease of parking, longer opening hours, staff who provide excellent customer service, and a pleasant and safe store environment.

Convenience consumers The Shopper Trends report revealed that as much as 89% of these spontaneous consumers frequent just two to three convenience stores of choice along their daily routes. While convenience consumers motivated by ease

and speed don’t display high loyalty, they have good awareness of the various forecourt retail brands, provide frequent visits, and are more likely to recommend their preferred stores, creating organic ambassadors for the retailer brands. ‘When it comes to store attributes, consumers prefer those stores with a loyalty programme, efficient checkout points, well presented shelving and displays, and stores that offer the preferred brand or product they are looking for,’ Gareth maintains. In terms of shopper demographic, the Shopper Trends study found that upper LSM shoppers are most likely to frequent convenience outlets. Interestingly, more men (58%) are likely to consider purchasing everyday grocery items at this kind of outlet versus their female counterparts (42%). The average monthly spend at these outlets is R357.

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Those stores that offer readyprepared foods and beverages that can be consumed on-the-go are preferred by time-strapped individuals.

Small but smart! Looking at the future of convenience opportunities, Nielsen highlights these key points to ensure small is also smart: • Fast check-out = shorter queues – The use of technology allowing for speedier self-checkout would be beneficial, considering the fewer number of items normally purchased per trip. • Powering up product displays – Forecourt retailers have largely mastered the art of impulse displays but there’s an opportunity to improve the presentation of other categories. As fuel owners become more established retail owners, they will need new skills and expertise to enhance the overall retail experience. • Petrol and private label – Now that retailers have a branded store presence on petrol forecourts their own brands are, and should become, more prevalent within these stores in tandem with Private Label brands’ increased share within the country.

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RETAIL

• Big data, bigger baskets – The use of data analytics will allow retailers to analyse factors such as basket composition and product assortment, as well as explore the time and day when purchases spike. In this way, retailers could fashion their stores around the shopping dynamics and experiment with product and promotional concepts to drive purchases throughout the day. Convenience outlets present a storehouse of opportunity as consumers’ lifestyles evolve. The key is to tap into the shopping missions and consumer needs to maximise this opportunity with the right strategy. n

Photo credit: Nielsen South Africa

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Convenience outlets present a storehouse of opportunity as consumers’ lifestyles evolve.

Nielsen South Africa’s head of retailer services, Gareth Paterson.

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RISK MANAGEMENT

Sasria joins Santam to empower municipalities Sasria has signed an agreement with leading short-term insurer Santam to join their Partnership for Risk and Resilience programme to facilitate increased collaboration between provincial and district disaster management centres, and to enhance the capacity of local government with fire and flood risk management.

Sasria, a state-owned entity, provides distinctive insurance cover against risks such as civil commotion, public disorder, strikes, riots and terrorism. Beginning with the Ehlanzeni district municipality in KwaZuluNatal they will work in their business’ specific areas of concern – civil and labour unrest, and student protest, which in many instances result in fire risk in municipalities. ‘We commend Santam for the impact it has made across a host of municipalities and look forward to our partnership in this ground-breaking project. Through our involvement, we will understand the drivers of potential community unhappiness and then address it proactively to prevent any unrest or protest action,’ explains Cedric Masondo, Sasria’s managing director. Santam’s Parternship for Risk and Resilience (P4RR) is a cooperative partnership established in 2012 with the Department of Cooperative Governance. The initiative was originally established to assist municipalities to address vulnerable levels of risk when it came to fire, flood and storm surge hazards within underprivileged communities. ‘We have greatly improved the provision of disaster management services across several municipalities, and more than five million people in ten district municipalities

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We have greatly improved the provision of disaster management services across several municipalities, and more than five million people in ten district municipalities and 53 local municipalities will benefit from the expanded programme over the next five years.

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Santam’s collaboration with municipalities via P4RR has resulted in several contributions being made by the insurer to help mitigate ‘on the ground’ insurable risks.

and 53 local municipalities will benefit from the expanded programme over the next five years,’ says John Lomberg, stakeholder and CSI manager at Santam. ‘Through the partnership, Santam has been instrumental in enabling these municipalities to effectively respond to emergency and disaster risk management events. We were pleased when Sasria responded to our appeal for other insurers to join our initiative. We place enormous importance on our accountability to fulfil the role of a responsible corporate citizen through forging partnerships, building capacity, and creating sustainable solutions and practices to enhance the resilience of communities to manage and reduce risk. We’re looking forward to more insurers joining the project,’ says John. Santam’s collaboration with municipalities via P4RR has resulted in several contributions being made by the insurer to help mitigate ‘on the ground’ insurable risks. These contributions include resourcing local fire stations with equipment such as fire hoses and protective gear and enabling geographical information systems aimed at improving emergency response and disaster management capabilities. ‘We have greatly improved the provision of disaster management services across several municipalities and look forward to impacting the lives of more than five million people between now and 2020,’ John concludes. For more information, visit www.sasria.co.za and www.sanlam.co.za. n

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SKILLS DEVELOPMENT & TRAINING

SA organisations are not ready for learning development Building techniques to cultivate a culture of continuous learning and growing professional development is of national importance for South African employers.

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SKILLS DEVELOPMENT & TRAINING build skills, roughly 30% say they do not have a clear path within their organisation, and 16% say they use short-term assignments as part of career development. And, while 81% of executives rated career and learning as important, only 58% describe their organisation as prepared, which rates the country ‘not ready’ when it comes to how employers manage careers and deliver learning and development. To boost the country’s readiness score, employers need to become digitally savvy in an evolving digital world. According to the data, companies are moving to overhaul their career models and L&D infrastructure for the digital age. Learning technology is changing rapidly. Traditional learning management systems are being complemented with and replaced by an array of new technologies for content creation, delivery, video distribution and mobile use.

“ According to the 2017 Human Capital Trends Report by auditing firm Deloitte that delves into the top human capital trends for South Africa, as well as globally, careers and learning shot to second place on the importance list. Deloitte’s research finds that globally, 83% of executives have identified learning and development (L&D) as vital. And, increasingly, more organisations are beginning to help employees with ‘always-on’ L&D to plug the critical skills gap that exists in various sectors, as well as to help employees grow and thrive in the workplace. But what are South African employers doing to fasttrack learning and development? The report indicates that only 28% of employers say they’re helping employees

To boost the country’s readiness score, employers need to become digitally savvy in an evolving digital world.

Richard Rayne, CEO of iLearn – a leading South African learning solutions provider that offers a range of learnerships, short courses and digital learning solutions – describes the report’s results as refreshing. ‘We’re pleased that more employers have acknowledged that learning and development in the workplace is fundamental and key to growing any organisation. But there is more to be done,’ says Richard. Because of the critical skills gap that exists in various industries, South African employers are encouraged to accelerate their staff development process and produce a culture of employees who are knowledgeable and informed. Richard says learnerships produce capable and efficient employees, and more South African employers should encourage learning and development in the workplace to boost the level of skills in the organisation. A learnership is a vocational and educational training programme that links structured learning and work experience to obtain a registered qualification. It combines theory and workplace practice into a qualification registered with the National Qualifications Framework (NQF). ‘Empowering and developing employees through NQFaccredited learning programmes is one way of boosting the level of skills in an organisation. And it’s a twopronged process – when employers upskill, organisations grow, and this will help take our country forward, which is exactly what we need,’ Richard insists. For more information, visit www.ilearn.co.za. n

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SUPPLY CHAIN

Lack of skilled technology operators threatens logistics profitability The logistics industry is geared to quickly hire operational skills – pickers, packers, and drivers – based on seasonal scalability, but in a highly-competitive environment this isn’t enough anymore to ensure business profitability and happy customers.

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SUPPLY CHAIN A shortage of specialised skills that operate the technology optimising distribution of goods to customers is threatening even the best efforts at scaling operational capability,’ points out Lukas Potgieter, general manager at VSc Solutions.

Humans need to provide insight Technological advances have significantly eased the pain traditionally associated with outsourcing skills considered core to the success of a business but having the right technology available is only one part of the solution. While technology typically manages customer orders throughout the supply chain – whether it be for large quantities of car parts, or one pair of shoes – it is the team of humans operating the logistics technology that need to provide insight into the supply chain functions. Some of these insights include route planning that optimise service levels and reduce costs, determining driver schedules according to labour regulations, and managing breakdowns, route deviations, and other exceptions that can result in costly redeliveries.

Impact of staff turnover Lukas explains that the knowledge and skills needed to efficiently use logistics technologies take some time to grasp, and are quickly lost when trained staff leave, or during planned or unplanned leave days. ‘No business can afford to incur unnecessary costs or delay deliveries just because of a lack of trained staff,’ warns Jaco Kamper, senior contract manager at VSc Solutions. ‘We need to be able to compensate for specialist human resources needed for strategic insight and operational efficiency as much as we need it on core operational skills.’

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No business can afford to incur unnecessary costs or delay deliveries just because of a lack of trained staff.

Impact of e-commerce The increased pressure of customer expectations brought on by developments in e-commerce, changes to customer ordering patterns, and a move to centralised distribution services, means businesses are finding themselves in need of both operational and consulting services that analyse and optimise their networks. These include advice on where to base production and distribution centres and warehouses, and the most optimal way to service customers, taking business constraints and customer service levels into account.

Shared responsibility It is becoming more popular to share the responsibility of strategic decisions and the resulting outcomes, as well as

the daily operational management of these systems, with specialist service providers specifically trained to operate and generate insights from supply chain software. The solution to this strategic requirement lies in a so-called control tower. A control tower serves as a structure to manage the human resources – whether in-house, outsourced, or in a combined model – dedicated to managing the strategic optimisation, routing and route execution software. A control tower offers a depth of skills that can handle unforeseen circumstances as quickly as they arise. This negates the need for a business to employ fulltime resources for skills that might only be required on a part time or ad hoc basis. ‘The control tower method allows us to become outsourced specialists of daily operational functions of our clients, explains Lukas.

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A control tower serves as a structure to manage the human resources dedicated to managing the strategic optimisation, routing and route execution software.

Trust is key Although outsourcing these specialised services through control towers have grown significantly over the last few years, many businesses struggle to understand how someone outside their organisation could potentially provide better insights into their business than fulltime resources can. Lukas explains that a control tower operator is less likely to get distracted by operational details and inherited inefficiencies because their decisions and advice are primarily based on data generated by technology and best practice. ‘We typically see an increase in customer satisfaction and a reduction in logistics costs for our control tower clients, whether they have a fully-managed service or just a partial bureau service solution, Lukas adds. A managed service has a lot of smaller benefits: the control tower can look at strategic considerations such as the number and types of vehicles needed, whether sales or nominated delivery day driven distribution models are needed, and advice on balancing and optimising operations based on customer service requirements. ‘Probably the biggest benefit of a control tower service is the shared responsibility for improvement initiatives,’ notes Jaco. ‘Once a system is live, it becomes very easy to measure improvement versus daily costs and make adjustments without costly delays.’ For more information, visit www.vscsolutions.co.sa. n

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TRAVEL & TOURISM

Tourism can help SA break the recession cycle in the short term By Mmatšatši Ramawela, CEO of the Tourism Business Council of South Africa (TBCSA)

The South African economy has been hit by a perfect storm of rising unemployment, a widening budget deficit, credit ratings downgrades and a technical recession. And this is happening in a country struggling to regain some form of equilibrium on socio, economic and political fronts. The economic situation in South Africa is compounded by an unacceptable political environment of capture, corruption and succession debates, which are causing continual internal focus rather than taking a global view of the nation’s competitiveness and economic growth.

Business and investor confidence is at its lowest level since 2008. In this environment, the prognosis for the economy and consequently the levels of unemployment, poverty, and the likelihood of increased criminal activity and social unrest are extremely worrying.

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TRAVEL & TOURISM Sunrise sector However, tourism is one ‘sunrise’ sector that can not only switch on and generate swift growth but is also one that, societal upheaval aside, can be immune to many of the local issues and challenges, providing visitor experiences are not compromised. Tourism is a vibrant and vital economic sector, and its total GDP contribution in 2016 alone amounted to R492.2 bn or 9.3% of GDP. The World Travel and Tourism Council (WTTC) forecast that this sterling contribution would rise to well above current GDP levels to 2.5% in 2017, and by a further 4.5% per annum thereafter. Additionally, in 2016 the sector generated 1 533 000 in jobs (9.8% of total employment) and was projected to rise by 6.7% in 2017 to 1 636 500 jobs, notwithstanding the current recessionary pressures.

Economic value chain Looking at the specific employment figures, it is critical to remember that this is the one sector with the ability to provide a broad range of job opportunities: from very technical to soft-skills and unskilled. Tourism has the ability and potential to generate jobs across the board in both rural, semi-urban areas and major cities. It has the potential to encourage the direct development of entrepreneurial opportunities in all its sub-sectors, not forgetting the other indirect employment and entrepreneurship opportunities generated elsewhere in the country’s economic value chain.

Leveraging the sector’s full potential But, despite being recognised for its immense economic potential, we are yet to scratch the surface of leveraging this potential. Instead, the lack of cohesion and alignment in our planning and policy implementation results in the unintended consequence of creating barriers for the sector’s growth. To illustrate the point, one only needs refer to the issue of the changed immigration regulations in 2014 and the impact this had on the tourism sector. Issues of tourist vehicle permitting requirements, as well as the provision of bespoke investment incentives are among the key areas that need attention if we are to reap the economic benefits of a thriving tourism sector

Changing mindsets We need a complete mind-set change – a change in view to a single vision – that we can work towards together as the private sector, public sector and society. The review of the National Tourism Sector Strategy (NTSS) was a step in the right direction. However, as we interrogate the NTSS it is critical that we guard against our responses descending into a list of problems with the subsequent ‘bashing’ key elements normally falling within public sector. This is neither constructive nor encouraging as it merely generates a negative mind-set and inevitable hostility and mistrust among stakeholders that need each other.

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Tourism has the ability and potential to generate jobs across the board in both rural, semi-urban areas and major cities.

What we need is frank and robust discussion regarding the challenges and barriers the sector faces, guided by positive and innovative thinking by all role-players working together towards developing tourism solutions for South Africa’s economic challenges. We need a fresh approach to find solutions that can help align the various components of the tourism value chain, from supply and demand, and the enablers of a viable operating environment. We need to all work collectively behind a tourism manifesto to help South Africa break out of the recessionary cycle in the short to medium term.

Getting practical: from challenges to solutions Let’s investigate a few examples and assess whether collaborative and positive thinking can generate sustainable solutions: • Growth in inbound and domestic tourism: Our international arrivals are still increasing although we are still in the recovery phase following poor performance in the past two years. We must continually examine what the critical success factors are that enable us to sustain this positive showing. On the domestic front, our tourism numbers are declining, a situation that is further exacerbated by the economic situation. The technical recession and less disposable income may certainly lead to less discretionary spend on travel, which begs the question of what the best approach is for us to ignite a local travel culture amongst all South Africans. • Integrated public transport: Virtually all successful tourism destinations enjoy fully-integrated, convenient, affordable and safe public transport systems. This is one key area that requires serious focus and investment as it directly impact on the ability to enable tourism activity within the country. • Personal safety: South Africa has always had a good reputation as having one of the friendliest, warmest and most welcoming people. However, recent issues of airport follow-home robberies are putting a damper on this reputation and requires serious attention by all the relevant parties. The annual brand tracking research by South African Tourism (SAT) indicates that the number one reason why potential visitors to South Africa don’t convert their awareness, interest and desire into action is a concern for personal safety. We should strive to make South Africa liveable for our own people and

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TRAVEL & TOURISM The challenges and barriers are many. However, so are the solutions. It’s time to work together behind a vision to ignite South Africa’s tourism potential: to position tourism as a core pillar of the South African economy because we are indeed a world in one country. It’s time for us to liberate tourism for the sector to take its rightful place as THE economic engine that will kick-start economic growth faster and more sustainably than any other sector. It’s time to provide the leadership and support required for this sector to make serious contributions to our economy and country’s growth and development. n

Photo credit: TBCSA

improve our prospects of being a desired location. Our success as a country in addressing this, not only for tourists but for locals too, would be both a symbolic and a practical demonstration that the rule of law, order and mutual respect is desirable and achievable. • The enabling environment: This is where a very simple shift is required in terms of mind-set by the manifold authorities who perform the gatekeeping functions. We need a shift from a red- to greentape environment that makes the tourism business experience simpler, better and faster. • Inclusive growth of tourism: In the same way that we need to pay attention to making our country more liveable for it to be visitable, we also need to work together to ensure that all our people benefit from the growth of tourism in the country. We can do this by ensuring that we create an enabling environment for business to thrive (government), operate enterprises in such a way that we make it possible for budding entrepreneurs to enter the sector and its various industries (private sector), and ensure that we give a share of our disposable income to support tourism products and services in South Africa (public with disposable income) while also working together to create opportunities for all South Africans to experience tourism in their own country.

Mmatšatši Ramawela, CEO of the Tourism Business Council of South Africa

Tourism Business Council of South Africa (TBCSA) is the umbrella organisation for business in the travel and tourism industry. We are a nonprofit, member-centric organisation representing the unified voice of business. We serve to unite and influence the diverse travel and tourism industry to contribute to a competitive, responsible and inclusive travel and tourism (and South African) economy.

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