Gauteng Gateway

july

- august 2018

South Africa has investment opportunities across the economic spectrum – Sasol CEO

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Managing Publisher Peter Ngozi-Nyirongo +27 11 589 9043 +27 73 965 1943 peter@gautenggateway.co.za Publication Strategy Karel Mare Management Consultant Twelve Stones Editorial Chris Mutale Creative Direction Design Bandits & Peter Nyirongo Design and Layout Bryan Maron / Design Bandits

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Inspiration and Creative Motivation Paul Martin Sales and Marketing TK Ngambi Distribution Nathan Zachary – The Americas Region Joseph Myers – Middle East Regions and Asia Pacific Printer Paarl Media Publisher Priority Digital Media 150 Rivonia Road Sandton, 2090 South Africa Disclaimer The opinions expressed in this publication are those of the author(s) and do not reflect the opinions of Gauteng Gateway or its Editors.

Information contained in our published works have been obtained by Gauteng Gateway from sources believed to be reliable. However, neither Gauteng Gateway or its authors guarantees the accuracy or completeness of any information published herein and neither Gauteng Gateway nor its authors shall be responsible for any errors, omissions, or claims for damages, including exemplary damages, arising out of use, inability to use, or with regard to the accuracy or sufficiency of the information contained in the Gauteng Gateway publication.

NOTE FROM THE EDITOR

D

ear Reader,

You would have picked up a copy of this magazine because you fall within the economic framework required for investment into Gauteng and other parts of the African continent. Gauteng Gateway in this issue looks specifically into the performance of strategic economic sectors in South Africa as a means to inform investment decisions.

According to Standard Bank, economic growth in South Africa will recover and perform better in 2018, than the economy did in 2017; however, we need to navigate our investing cautiously as there are still domestic and international risks that may affect how we perform.

There has certainly been a growth in positive perception since Cyril Ramaphosa took over as President of the ANC, and subsequently president of South Africa. Because the South African economy is still largely dependent on foreign direct investment, how the world views SA is critical to how much investment we can attract.

Despite the setbacks, South Africa still maintains strong legal and democratic frameworks within which strong businesses can be built to thrive. Investing in SA property, the telecoms industry, agriculture, the Internet of Things, recycling,

manufacturing and mining, is a viable option for any perceptive investors looking for steady growth and sustainability. At the World Economic Forum and various other platforms, the message from the president is clear, “South Africa is open for business”.

The road ahead is not a steep rise to the peak but a stable climb with limited turbulence. South Africa is on the rise. The critical factor that remains in terms of pushing investment into Gauteng is creative funding solutions that bring into economic play major groups and clusters of the black forgotten masses.

The bulk of black South Africa still lives in what can be classified as poverty. This is always a precursor to crime and disease; and it subsequently makes a dent into sound economics required for investing. The good news is government, banks, entrepreneurs, technologists, futurists, and crypto venture capital are working towards solutions that drive out mass poverty.

Gauteng Gateway believes this province which hosts Africa’s Richest square mile has what it takes not only to attract necessary investment into critical sectors but also to give you the return over time that you most desire.

Greets from Mzansi, Chris Mutale

Chris

Gauteng Gateway // 5

Discover Melrose 8 The Business Exchange

32 Sandton Gate

64 Spotlight on Phuti Mahanyele 6 // Gauteng Gateway

Manufacturing Industry Analysis

18 Predicated Property Future Hotspots

Accessorizing The LBD (Little Black Dress)

Play your part

Twenty things to do in Joburg

Internet of Things (IoT) Trends in South Africa

66

26

52

50

CONTENTS

14

60 Important Lessons About Money

67 Sophie Kanza. Building a Supportive, United and Tolerant Society

76 The AFRICA challenge Gauteng Gateway // 7

OFFICE SPACE

Flexible office space Inspiring Creativity and Collaboration

F

lexible office space is the future. Productive people build progressive companies - and where they work matters. At The Business Exchange (TBE), our beautifully designed workspaces inspire creativity and collaboration.

Each TBE building is home to internationally curated artwork,

which provides an imaginative backdrop for new ideas and innovation to flourish. You’ll get access to the TBE app, which allows you to connect with an entrepreneurial ecosystem of members - as well as book conference and boardrooms and seek assistance from on-site managers. Ultimately, it’s about providing inspiring spaces that allows you to work with purpose. The companies who realise this will own the future and at TBE, they already do.

Private Office Space Whether you’re looking for a one-person office or you need a corporate space for your team of 100 people, our flexible offices will meet your requirements. You’ll get all the benefits of community, plus an added sense of privacy and the ability to create a culture of your own. As a private office tenant you get 24/7 access to your office, fully furnished space, a full staff compliment, fibre optic internet, events space, a coffee shop and so much more.

8 // Gauteng Gateway

OFFICE SPACE Included in all our office packages: • Cutting edge and stylish office design • Fibre optic Internet connectivity • Access to a monthly events • Free usage of Events and bar space • Full time IT support • Boardroom & Presentation room usage • Flexible Lease Options • Business Managers at all Properties • Gym and Shower • Biometric Access • Restaurants & Barista Served Coffee • Video Conferencing v

The Business Exchange Rosebank 116 Oxford Rd, Melrose Estate, Johannesburg, 2196 TEL: +27 10 035 2500 officespace@thebusinessexchange.co.za

Gauteng Gateway // 9

INVEST IN GAUTENG The Gauteng One Stop Shop, which aims to facilitate seamless international investment in South Africa, was officially opened by Minister of Trade and Industry Rob Davies and Gauteng Premier David Makhura in Johannesburg.

T

he InvestSA One Stop Shop (OSS) has been launched to provide professional service to investors, reduce regulatory inefficiencies and reduce red tape for entrepreneurs looking to invest in the province.

“The task of countries that want to be competitive investment destinations is to make it easy for business to set up shop and remove all hindrances that may drive investors away. We are responding to this with the launch of InvestSA Gauteng,” said Makhura.

The InvestSA One Stop Shop in Sandton aims to bring together special economic zones, provincial investment agencies, local authorities and government departments to reduce inefficiencies and red tape for investors looking to invest in Gauteng.

Invest in SA – One Stop Shop At the launch Minister Rob Davies said the hub was part of a presidential priority to improve service delivery for investors.

“This is a partnership from national government into the provinces and an excellent model of intergovernmental collaboration between the three spheres of government,” said Davies.

Shop will remove the hassle and red tape to an investor by providing a more coordinated, streamlined and professional service to companies. All these services will be available under the same roof.”

Services offered to investors include access to the departments of home affairs, labour, environmental affairs and trade and industry.

“The aim of the One Stop Shop is to provide a convenient, professional service for setting up a business. The One Stop

The hub will also give investors access to agencies such as the Companies and Intellectual Properties Commission, the SA Revenue Service and state power utility Eskom, among others.

“South Africa is indeed an attractive destination and government is committed to improving the investment climate and ease of doing business. I urge the investment community to make use of these services and look forward to the roll out of One Stop Shops in all provinces.”

Gauteng Premier David Makhura said the hub signals that South Africa is open for business “The task of countries who want to be competitive in the global economy is to make it easy for companies to invest,” Makhura said. v

10 // Gauteng Gateway

SOCIAL MEDIA

IGTV social media

BY NESSAH

I

nstagram is one of the apps that have made a difference in a lot of business peoples’ lives by making it easier and cheaper to advertise and attract loyal followers and customers.

We have seen them borrowing from snapchat sometime in 2016 (Pavithra Mohan) and now they have launched an application which works hand in hand with the Instagram application and can also be accessed from within the Instagram app and could be a serious competition for Youtube.

What is IGTV and why should anyone use it?

“IGTV is Instagram’s way of disrupting the traditional TV experience and updating it for a modern, mobile experience.” - Taylor Loren Certainly, anyone can use it, however, it seems to be more for content creators but then again everyone and anyone has become a content creator so this information is useful to everyone who uses Instagram.

Since the world is becoming more video based, this app was built with this in mind.

We all hold our phones in our hands almost every minute of the day so watching vertical videos basically makes life easier for all of us without having to rotate them.

If you are an Instagram user, when you get 12 // Gauteng Gateway

the IGTV app you automatically have an IGTV channel.

For the content creators and the general Instagram users who do not have a big following there was a struggle of driving traffic from one’s Insta stories to their website or other platforms with the lack of linking a site, however, IGTV gives you the option to link your channel on your stories in order to get your followers and customers to watch your longer length videos.

Like in my previous point, the videos on your IGTV can be up to 1 hours long and this turns out to be a really great feature because the longest Instagram could

Over the years we have seen the rise of many different apps and some have been helpful while others have just been plain useless. accommodate was 1 minute.

Ease of use. As you open the app it instantly starts playing videos from the people you already follow on Instagram and you can easily swipe away if a video does not quite satisfy you.

IGTV is easily accessible from within the Instagram app for those who would not fancy downloading the app for their own uploads but would like to keep up with their favorite influencers. v

MANUFACTURING

Manufacturing Industry Analysis Courtesy of Standard Bank STRENGTHS • The strengths of the manufacturing industry are that it is relatively stable. Although the demand for manufacturing tends to fluctuate with the ups and downs of the economy, it is characterised by regular periods of recovery following any downturns.

Additionally, manufacturing has become highly efficient over the last century, with the ability to maximise both the productivity of the workers and machines to maximise profits.

•S outh Africa has world-class infrastructure, exciting innovation, research and development capabilities 14 // Gauteng Gateway

and an established manufacturing base. It is actively involved in the development and roll-out of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact.

WEAKNESSES • A weakness of the manufacturing industry is that much of it is built on the production of non-essential goods.

This means that a severe downturn in the economy can have a crippling effect on it.

• Another weakness is that it is a mature industry. This means that there is heavy competition and little room for growth.

As a result, the manufacturing industry can be a cash-cow for those who are

There are many truths in starting and operating a successful business. Many business truths are common sense concepts – like if you run out of cash, your business might not make it.

But, you can also draw on general life lessons when growing your business already in it but may be unattractive to new entrants.

• Set prices that affect the economy, such as electricity tariffs and petrol prices, form part of the macro policies that need to be reviewed to enable the manufacturing sector to work efficiently and affect the economy positively. As this is a national challenge, government should play an enablement role and not an intervention role.

• An adversarial relationship between government, labour and business severely hampers a coordinated approach for the good of the sector.

MANUFACTURING

OPPORTUNITIES • Manufacturing is among the top three multiplier sectors in terms of value addition, job creation, export earnings and revenue generation for every R1 invested, according to Deloitte’s 2013 report, “Enhancing manufacturing competitiveness in South Africa”.

• Opportunities in the manufacturing industry are in the technology and biotechnology areas. These are growing market segments with higher profit margins.

• Foreign markets with a growing middle class are providing opportunities for technology and bio-technology manufacturers to increase their profitability through exports.

• The future of manufacturing in South Africa lies in the country’s ability to become a stable business destination, globally competitive and beneficiate locally produced products.

THREATS • Over 300 000 South African manufacturing jobs have been lost or exported to other countries since the beginning of 2008, with the majority going to China.

• The South African business environment has worsened while administered prices in Brazil, Russia, India and China have decreased by over 36% in the last decade.

• By contrast, electricity costs have been raised by over 170% in South Africa, and this is predicted to continue to escalate at more than double the forecasted inflation rate.

• Our domestic market is vulnerable to imports from China, India, Brazil and other countries which offer much higher incentives and protection to their manufacturers.

• The largest threats to the

manufacturing industry today are from low-wage high-productivity nations like China, India and Brazil.

India, for example, has the ability to supply highly educated workers at low wages to fill roles in the high-tech manufacturing market segment.

• There is a need to review the bulk infrastructure pertaining to the reliability of water and electricity supply that allows for manufacturing to take place.

• Frequent strikes indicate that the collective bargaining system is placing pressure on manufacturing and that more leeway has to be given to other methods that were successful in some areas of industry, such as central bargaining. v Gauteng Gateway // 15

Benchmark Recycling

B

Using Crypto Currency to Kickstart Efficient Waste Management in Our Cities

enchmark Recycling is launching businesses in the recycling space by ensuring cities in Africa are making more efficient use of the resources they consume. Benchmark Recycling aims to achieve this by harnessing the power of crypto currencies to raise robust capital which is then channelled into systems that will help to recover materials for reuse instead of landfill dumping. This kind of system is called a Material Recovery Facility or MRF, pronounced as a murf.

A material recovery facility or MRF receives waste the same way that a landfill does. The waste is fed into the entire process by separators that separate the materials based on weight and dimensions. The MRF then allows for men and women to do the final high-quality separation into specific categories, driven usually by what the market wants to buy. The following highlights the advantages of building MRFs; • to get the materials needed by industry such as paper and plastics to industry at a fraction of the cost in comparison to the cost of importing raw material from overseas 16 // Gauteng Gateway

• to create hundreds of decent income jobs allowing for men and women with little or no education to have an income that catapults them into being economic players within the urban economy, • to create numerous small businesses around the process of recovering materials in areas such as logistics, composting, bio energy, waste to energy, catering, business supplies, manufacturing, and trading.

• Reduce the damage to the environment by redirecting thousands of tonnages of waste from being dumped in a landfill to being used in energy and manufacturing industries.

Understanding the Need for Recycling The city of Johannesburg is running out of landfilling space.

Historically there was six (6) landfills in Johannesburg operating to receive the city’s waste. Currently only four (4) are operational.

With a consistent increase in the waste we produce over the years, there is no longer a viable solution for the waste coming out of our businesses and our homes; this necessitates innovative ideas of funding and support for waste recovery projects around the city.

Any tonnage of waste that we can stop from going to landfill has a huge bearing on the sustainability of the municipality to continue its proper function without charging its citizens an arm and a leg in rates and taxes.

We know now that we are running out of landfill space and our environment is begging for efficient waste management in order reduce the carbon foot print. A MRF allows us to achieve this goal

CRYPTO CURRENCY while at the same time creating jobs and empowering thousands of families to earn a living and be part of a new ecosystem.

Johannesburg metro alone currently dumps approximately 7000 tons of municipal solid waste every single day into the landfill; a staggering 2.5 million tons on annual basis. The Centre for Scientific and Industrial Research (CSIR) has estimated the value of the waste we are dumping to be approximately R50 billion on an annual basis. Our landfills in the city have a maximum capacity of 6 – 10 years before we can no longer use them.

The alternative immediate solutions considered are either to build new landfills at an approximate cost of several billion rand per landfill, and thereby continue to damage our environment making it unresponsive and unproductive for use by future generations; or rail the materials at a mammoth cost to rural communities and dump it there to damage the environment

far away from where we are, and perhaps let the non-urbanites sit with the problem.

None of these solutions make any sense considering the cost to the municipality and implication on the environment. The seeming lack of information as well lack of leadership to deal with this issue means that we are still discussing ideas that are not sustainable. While initiatives like separation at source exist, whereby basic separation is encouraged in the home – there are no real commercial frameworks to ensure the exercise is a success. There is no real benefit for separating in the home and even if the separation at source is eventually achieved, there are no MRFs to uptake the materials and package them for industry.

The Benchmark Solution Benchmark International owns a crypto currency named Benchmark Token or simply BMK, which is investing in a series of MRFs around major cities in the African region.

Starting with Johannesburg, Benchmark is

aiming to reduce environmental damage and secondly to create thousands of jobs.

Tens of thousands of jobs will be created in every major city once MRFs and associated industries are functional.From investing in BMK, to project choice, and to realisation of profits – this is a seamless process achieved using blockchain technologies and facilitated by Benchmark professionals who possess versatile skills in property, finance, engineering and business management.

Well-meaning people and institutions from across the globe can invest in BMK, and be part of the Benchmark Ecosystem.

Benchmark is a blockchain technology company managed and owned by real people from various professional backgrounds with offices in Cape Town, China, Malta, the United States, and the Isle of Man. v Find out more about Benchmark: https://benchmarktoken.io/en/

PROPERTY

Courtesy of Private Property, www.privateproperty.co.za Braamfontein According to Lightstone the average price for a sectional title unit in Braamfontein in 2007 was R365 000, while it is R480 000 today. Although the price escalation is only 23% at this stage, the gentrification of this area is an ongoing success and Braamfontein is fast becoming a hot spot where penthouses of up to R4 million are now selling to creatives and young professionals.

...a neighbourhood celebrated through art, with its finger firmly on the pulse of big business Bryanston Bryanston is known as one of the most affluent suburbs in Sandton where the average sectional title property would cost you R1.2 million and the average freehold property R4.5 million in 2016, but in 2007 you could pick up sectional title for only R830 000 and freehold for just short of R3 million.

Property prices here will continue to climb as living in or close to Sandton is 18 // Gauteng Gateway

Predicted Future Property Hot Spots

an ideal for many and there seems to be no end to the commercial expansion and new employment opportunities arising in the area.

years ago and that is why Seeff decided to ask several of their principals across Gauteng which suburbs they predict will become the future property hot spots.

Cape Town Properties In Cape Town, Sea Point in particular has seen notable capital value accumulation over the last few years on the back of rising prices in the neighbouring suburbs. The average selling prices on the Atlantic Seaboard have tripled over ten years and values are up by a significant 67% over the last five years.

Linbro Park and Modderfontein David Ingle, Principal of Seeff Edenvale & Bedfordview says that Linbro Park in Sandton and Modderfontein around the Gautrein station will without a doubt be some of the hottest investment property in Gauteng over the next ten years.

In Observatory in Cape Town sectional title prices have more than doubled from R568 000 in 2007 to R1 258 million in 2017, as is the case with freehold from R892 000 in 2007 to R2 288 million today.

Of course, various property experts predicted the success of these suburbs

“These areas will present opportunities in the residential space with cluster homes, sectional title apartments and high rise apartments eventually on offer as well. In addition to the residential opportunities, there will also be numerous commercial, retail and office development opportunities.

Ingle concludes that he believes Linbro

PROPERTY

Park and Modderfontein, with their unrivalled location in the heart of Gauteng, to be two of the top five investment destinations in this province going forward.

Parkmore and Kyalami Charles Vining, Seeff’s Principal in Sandton, lists Parkmore and Kyalami as two of the best areas to invest in.

“Parkmore is on the doorstep of Sandton and is popular with young families who may be working in the Sandton CBD. It has a park-life appeal and it’s fast attracting trendy foodies to the local restaurants and coffee spots.

Local security companies have worked hard to maintain a secure environment that appeals to family and the local sports club has had

several upgrades recently.

This deliberate suburb upliftment will result in steady price growth over the next few years and in ten years, we’ll all be sorry we didn’t invest in Parkmore.

As one of Midrand’s southernmost neighbourhoods, Kyalami is a suburb with a plethora of

property options including new sectional title suburbs, older agricultural holdings, comfortable clusters and family homes and more exclusive homes in the secure Kyalami Estate.

“The racetrack has always been a significant attraction, but now that the Mall of Africa has opened up just down the road, there’s more reason to want to be in the neighbourhood.

Large corporations are ahead of this already, having built mega-offices in the area and others begin breaking ground soon. As these corporate head offices open, the attraction of living nearby in a suburb full of choices will

drive prices up and in ten years an investment here will pay off handsomely”.

Randburg, Sophiatown, Albertsville Chris Hajec, Seeff’s Principal in Randburg, says there are very few residential suburbs left in Randburg in which full title properties are poised to enter a stage of significant gentrification.

“First time home buyers are increasingly hard pressed to find entry level price points available for full title homes for R900 000 to R1 million and therein lies the potential for a disproportionate rise in appreciation in the last holdout suburbs left in that price range and one where the average homebuyer will be glad they invested in Randburg ten years from now.

When looking for that rapid appreciation that comes during a bout of gentrification, the next logical Gauteng Gateway // 19

PROPERTY

areas of Randburg to undergo such a transformation are the last predominantly full title areas left at R1.1 million and below: Sophiatown and Albertsville, both only a stone’s throw from Westdene.

These suburbs are predominantly characterised by full title, single family dwellings which hold a significant appeal to a large number of residential home buyers.

Currently, Sophiatown, with its vibrant culture and close knit community is extremely accessible to first time home buyers with an average price tag of around R843 000 for a full title property.

Although currently considered to be an area of higher than average crime rates and a lower than average household income, there is no denying that Sophiatown offers charming properties well situated for people who commute to work in other locations throughout

Randburg There is also excellent proximity to Wits and Johannesburg University, as evidenced by the high levels of student accommodation conversions which have been done in the area.

Albertsville has many similarities to Sophiatown and is increasing in popularity due to its affordability and the growing desirability of its neighbour to the north, Greymont as well as the established, sought after bohemian enclave of Melville to the south.

Greymont has an eclectic mix of a long time established residents and younger, often ‘hipster’ purchasers; a clear indication that gentrification is percolating.

When you have two neighbours side by side that seem wholly inconsistent (established residents versus new entrants)

PROPERTY

or every other property on a street undergoing renovations, you know there is gentrification brewing.

Sales prices over the last five years in Albertsville, Greymont and Sophiatown have not appreciated at the same steep incline as neighbouring “Meldene,” and thus are ripe for a gentrification phenomenon which will at a point five to ten years from now have investors and home buyers smiling at the above market appreciation they have achieved”.

The South Duane Butler, Seeff’s Regional Manager for the Northern Division says Brackenhurst and Brackendowns, two suburbs of Alberton, offer great value for money with an average selling price of around R1.5 million at the moment.

“This average selling price was R900 000 ten years ago and I believe it will be

around R2 million ten years from now”.

Butler adds that suburbs close to Soweto like Naturena, Meredale, Ridgeway and Mondeor will also experience good overall growth in ten years as supply and demand will push the average selling prices up. All of these suburbs are well located, close to the CBD and have good roads and transport infrastructures”.

Pretoria Steve van Wyk, Seeff’s Principal in Centurion says that you can’t go wrong with property investment in the fairly new areas of Highveld and Rooihuiskraal North.

“Both these suburbs offer great returns, have low crime rates, access to highways, good schools and amenities and are predicted to become even more sough after in future.”

Gerhard van der Linde, Seeff’s Principal

in Pretoria East, says suburbs in the far east of Pretoria like Hazeldean, Silver Lakes and Lombardy are expanding rapidly and are seeing many new access routes and schools, while medical facilities, a shopping mall, office parks, a commercial district, tourism buildings, hospitality and lifestyle living are predicted too.

Van der Linde says reasons to invest in the far east of Pretoria include amongst others the new R44B City Development, dubbed “The East Capital” with access from the N4, the new road known as Hazeldean Road which will link The N4 to the R21, a Gautrain station at the new development and easier access to OR Tambo.

“The whole area offers 12 estates which cater for a wide range of clients, all upmarket, ranging from stack bachelor units to townhouses and freestanding houses.” v

Gauteng Gateway // 21

This should improve

Courtesy of Standard Bank business and consumer

SA Takes Positive Economic Momentum

A

gradual economic recovery and the first steps of policy reform should characterise the South African economy in 2018, although there are global and domestic risks that need to be monitored closely.

implementation under newly elected ANC President Cyril Ramaphosa. This should improve business and consumer confidence and, in turn, economic growth, and most economic indicators are expected to move favourably in 2018.

The global backdrop is expected to remain benign, with reasonably strong economic growth and generally robust capital flows into emerging markets.

However, we will monitor the risk of a sharper China slowdown; downside risk to the near-record terms of trade; and the risk of higher inflation and, in turn, faster monetary policy normalisation in advanced economies (the US in particular).

Domestically, despite the divisions within the ANC’s National Executive Committee (NEC) and also its “top six� leadership, we expect some traction with policy reform and

However, many structural impediments, deep-seated ideological divisions across society, and extreme levels of inequality and poverty will continue to make decisive progress challenging. This will be most evident in respect of fiscal policy, with growing social needs and backlogs amid an already strained fiscal position. The existing policies require economic growth above 2.5-3% to ensure fiscal sustainability.

But demographic trends suggest that significantly more pro-poor spending, on top of the potential budgetary step-change from free tertiary education, will be required

22 // Gauteng Gateway

confidence and, in turn, economic growth, and most economic indicators are expected to move favourably in 2018. in the medium term, which would further lift the required economic growth rate. In short, the SA economy is expected to move in the right direction in 2018, but hard work still lies ahead.

Growth We expect economic growth to accelerate in 2018 to around 1.5% from an estimated 0.9% in 2017 (of which around half stemmed from the agricultural rebound), mostly driven by accelerating consumer spending growth.

This, in turn, is expected to be underpinned by real wage growth and gradually improving support from employment and credit extension. While there is ultimately potential upside to fixed investment growth, this recovery may take some time to

ECONOMY materialise. We expect very weak public sector infrastructure spending growth in the short- to medium term, and the expected private sector GFCF recovery is likely to be uneven across sectors and possibly slightly delayed.

Despite our expectation that the current account deficit should remain relatively narrow, we do not expect any material contribution from net exports to real economic growth. Unfortunately, the positive impact of Ramaphosa’s election will be counteracted to some extent by the remaining policy uncertainty, including the ANC’s conference resolution to change the Constitution to legitimise expropriation without compensation, but also including lingering uncertainty about policies such as the Mining Charter and Mining and Petroleum Resource Development Act (MPRDA) as well as general lack of traction with implementation of other growth-enhancing policies.

Cyril Ramaphosa’s New Deal • Similar to the NDP, the New Deal is essentially based on a social pact between business, government, labour and civil society.

• Radical economic transformation is state-led.

• A combination of policy instruments, including special economic zones, tax and other reforms, incentives for the development of small and medium enterprises (SME), import substitution policies and lowering the cost of doing business (including by improving Eskom’s operational performance, ensuring effective price regulation, reviewing port tariffs and increasing investment in rail and road infrastructure), is envisaged to support mainly manufacturing-led job creation.

• Accelerated land reform and growth of the SME sector are seen as key to support inclusivity in the economy.

• Policy certainty, improved institutional stability, restored credibility of the criminal justice system, and demonstrated political will to turn the economy around are regarded as key to restore (investor) confidence.

• Fiscal discipline is important to ensure economic sovereignty and to ensure that resources are directed to where they have the greatest developmental impact.

• It stresses the importance of improving the quality of education, and supports the provision of free higher education to the poor (although this requires a growing economy and stronger fiscus).

ECONOMY • SOEs should facilitate economic development, which requires that they should be properly governed and operated, with the appointment of skilled, experienced and incorruptible boards at strategically important SOEs as an immediate priority.

• Corruption and state capture should be addressed by taking criminal action against perpetrators, and all recovered proceeds of corruption should be put in a special anticorruption appropriation fund to be used for youth training and employment initiatives.

Expenditure The main driver of consumer spending momentum is expected to be real wage growth, which is in turn supported by our expectation for relatively low inflation.

Assuming 6.5% wage growth, real income growth should remain positive across the income spectrum, even once the impact of bracket creep (with tax brackets not adjusted for inflation) and the usual “sin” tax increases, is taken into account.

However, if total hikes of R30bn are implemented, as intimated by the Finance Minister, and these hikes are broad-based, middle income households will only have

24 // Gauteng Gateway

around 0.5% real after-tax income growth at 6.5% nominal income growth (and thus effectively no real after-tax income growth if nominal income grows at say 6%). The chart shows that the possible monetary easing could provide modest further relief to consumers.

Apart from the underpin from real wage growth, there could be modestly stronger support to consumer spending growth from credit extension in 2018 following a decade of deleveraging that reduced the household debt-income ratio from 87.8%

to 72.5%. Data from one of the credit bureaus suggests that credit growth, albeit still weak, has become somewhat more broad-based, after previously been mostly concentrated among the higher income groups. However, debt in arrears does not appear to have receded, which curbs the likely near-term upside.

The immediate prospects for fixed investment growth remains weak, despite the boost to the medium-term outlook from the political economy improvements underway. While there should be some general improvement in confidence, many firms will likely require more concrete

policy signals or improvements to expand capacity, and it is normally a protracted process. In many sectors, sector-specific issues would first have to be convincingly resolved with credible and certain longterm policy programmes.

Despite these factors that curb the upside in the foreseeable future, we do expect some improvement in private sector fixed investment following two years of contracting real private sector. This is supported by the recovery in aggregate profitability as well as our estimate that private sector has declined significantly relative to domestic or domestic and export demand to justify some expansion against the current economic backdrop.

The Supply Side • The agricultural sector’s real GDP has recovered to around 5% above its peak prior to the drought. We expect only modest further expansion in the near term, but there might be slight upside risk to our current assumptions.

• The medium-term outlook for mining sector volumes remains relatively bleak, although relatively high prices could have a positive bearing on supply and profits. The single biggest risk to the general SA economic outlook is at this stage the potential downside to the terms of trade, although to date there is no indication that this is imminent.

• We pencil in modest growth for the manufacturing sector in 2018, and expect a slight acceleration in the sector in 2019. It is supported by the expected recovery in domestic demand growth and reasonable growth in the demand for SA’s exports, although we are slightly

ECONOMY

concerned that the stronger rand (even if the recent strength is ultimately not entirely sustained) may encourage an increase in the import intensity of demand.

• We do not expect any contribution from the utility sector to GDP growth, given relatively weak growth in the most electricity-intensive sectors and the general decline in the electricity intensity of GDP. • We expect there to be some improvement in select pockets of the construction sector. However, with the weak government forecasts for public sector infrastructure spending and weakness in the structural longer-term mining volume prognosis, our base case expectations for the sector remain relatively weak.

• We expect some recovery in the wholesale and retail sector in 2018 and 2019, supported mainly by our expectation for a recovery in consumer demand.

• We pencil in an improvement in the transport and communication sector, owing to the recovery expected in the general economy and particularly the goods-producing part of the economy that should support the transport component of the sector.

• We are cautiously optimistic about the outlook for the financial and business services and real estate sector. There has been a tentative improvement in the credit demand growth of households, which we expect to accelerate somewhat over the course of 2018.

• Growth in the government services sector should remain under pressure given the fiscal consolidation that is underway. At this stage we are not pencilling in an ongoing contraction, but there is some downside risk to our forecasts.

• We expect some improvement in the personal services sector’s GDP growth in 2018, consistent with our

– such as land expropriation without compensation, and radical economic transformation – are keeping political and policy risks elevated.

view that general consumer demand growth should pick up on the back of reasonable real wage growth.

monitor closely several potentially randnegative risks, including a slowdown in China sharper than expected and higher inflation in advanced economies (notably the US) that could compel faster monetary policy normalisation than currently expected, as well as downside risk to the near-record domestic terms of trade (our key concern), the aforementioned general policy risks and, specifically, material fiscal risks. v

The Rand Our rand forecasts are constructive, supported by benign global economic expectations, including reasonably strong economic growth and the expectation that capital flows into emerging markets will remain robust. Domestically, improved sentiment should provide support to the rand, although lingering policy debates

We also expect the rand to benefit from a relatively small foreign funding requirement given our forecast that the current account deficit should widen only modestly in 2018. However, we will

Gauteng Gateway // 25

TRAVEL

20 Things To Do in Joburg 1. Bryanston Organic Market

Cost: Free Location: Bryanston Live music, handmade goods, a tea garden and crafting activities for the kids.

This is a great option especially if you are looking for a weekday market. 40 Culross Road, Bryanston. Open on Thursdays and Saturdays from 9am to 3pm.

2. Walter Sisulu Botanical Gardens

Fee: R45 Location: The Westrand / Roodeport Founded in 1982 this nature reserve is perfect for your next picnic. One of South Africa’s eight botan-ical gardens, you can snack on sarmies beneath the waterfall, 26 // Gauteng Gateway

watching the Verreaux’s Eagles perched at the top with binocs, walk through the succulent rocket and fern garden or look down on the sprawling lawns from the top of the waterfall. It’s a great time to go anytime of the year.

3. Montecasino Bird Gardens

Cost: R70 Location: Montecasino More people ought to visit these incredible bird gardens. There are beautiful walkways past count-less exotic birds, an impressive cycad garden, a frog room and the longest snake in the world, plus other unusual mammals like the sloth and lemurs. My favourite though is the walk-through aviary filled with dozens of bright pink scarlet ibises and over 60

other bird species.

The bird show is really interesting too and you can feed the lorikeets on your way out which is always a scream.

Literally, when they land on your head and walk up the back of your neck.

4. The Living Room Joburg’s Premier Eco Urban Venue

Cost: R60 on Saturdays and Sundays.

R80 after 4pm on sundays. Free during the week.

Location: Maboneng This awesome rooftop venue in Maboneng overlooks the gorgeous city skyline and feels like you’re sitting in a nursery – hence its name, The Living

TRAVEL

6. Visit The Apartheid Museum

Room. Eat tapas surrounded by an abundance of plants and sip on cocktails as the sun goes down.

5. Melville Koppies

Cost: R50 Location: Melville Over 200 bird species have been recorded in the reserve and a variety of small mammals such as slender mongooses, civets, genets and hedgehogs. Hedgehogs have to be the

sweetest animals and we have them right here in Joburg. Melville Koppies Central has controlled access only, so you can either go on a Sunday group guided tour or Sunday group hike of the Reserve for R50 per adult and R30 per child who must be over six.

Details of these tours and hikes can be found on calendar/map of www.mk.org. za or phone for special booked groups 011 482 4797.

The Apartheid Museum is very popular among visitors who are eager to learn about the history of the city and South Africa as a whole. The non-profit museum was opened in 2001 and relies on dona-tions, contributions and sponsorship to keep functioning and growing. The Apartheid Museum is the first of its kind and documents the rise and fall of the apartheid system. Here you’ll be able to learn through film footage, photographs, text panels and a variety of artifacts that bear witness to the events and human stories that were part of the apartheid.

7. Nelson Mandela Square

Formerly known as Sandton Square, Nelson Mandela Square was renamed in 2004 in honor of the former President of South Africa and anti-apartheid activist, the late Nelson Mandela. A striking statue of Nelson Mandela was erected in the square, which lures many visitors who want to take a pic-ture next to the iconic president. The square also boasts a sprinkler fountain, which provides great entertainment for children.

Gauteng Gateway // 27

TRAVEL

8. Gold Reef City

Cost: R120 Location: Johannesburg Gold Reef City is an amusement park located on a gold mine that was closed in 1971. Come and en-joy a wide variety of fun rides – be aware that some have height restrictions. Here, visitors also get the opportunity to learn about real life mining disasters. For an additional fee, you can take part in an underground tour of a disused gold mine. One ride to look forward to is the giant wheel, which provides a stunning view of Johannesburg’s suburbs and the beautiful calabash of Soccer City. Test out your luck at the casino afterwards.

Computicket. 56 Margaret McIngana St, Newtown. Monday hours are 8am to 4pm, Tuesday to Saturday hours are 8am to 10pm and Sunday hours are midday to 5pm. Call 011 832 1641 for more info.

9. The Market Theatre

10. Pata Pata

The Market theatre was an integral part of the struggle and continues to produce strong, intelligent performances. Awardwinning past pieces include Woza Albert, Asinamali, Bopha, Sophiatown, You Strike the Woman You Strike a Rock, Born in the RSA, Black Dog and the standard continues with cutting edge performances on offer. Book on

Cost: R75 for a pata pata burger.

Popular 60’s themed jazz restaurant filled with good people, good food and good music. 286 Fox street, Maboneng.

11. The Joburg Red Bus Tour

Cost: R160 Adults; R90 children; Free

for under fives The most cheerful way to discover Joburg is on the roof of a shiny red city sightseeing bus. They’re hop on, hop off meaning you get to choose how you spend your time. The tour comes with audio commen-tary available in 15 languages.

12. The Nelson Mandela Centre of Memory

Cost: Free, donations welcome The centre of memory can be found at the Nelson Mandela Foundation, a nonprofit organisation started by Madiba in 1999. Visit the current exhibition which focuses on photography during the State of Emer-gency. Submit a booking request via the website to visit the centre. One is able to visit on Mondays, Wednesdays and Fridays between 09h30 and 15h30.107 Central Street, Houghton. Call +27 (0)11 547 5600.

13. SAB World of Beer

Cost: R105 for adults, R95 for pensioners and students Two-time winner of the number one tourist attraction in SA, SAB World of beer tour is a must for anyone fond of a cold one or just interested in the fascinating political and economic history behind our beloved brewery.

Sample raw barley and hops, ask questions and fill up on interesting 28 // Gauteng Gateway

TRAVEL

facts about the origins of beer drinking in SA. After the tour you can do a beer tasting included in the ticket price or simply enjoy the views of Newtown from the tap room while sipping on two complimentary SABMiller Beers. Book-ings are essential. The SAB World of Beer is open seven days a week from 10am until 6pm. The last tour is at 5pm, except for Sundays and Mondays, when the last tour is at 4pm. This is a stop on the red bus route. 15 Helen Joseph Street (formerly President Street) Newtown. Call +27 (0)11 836 4900.

14. Zoo Lake

Cost: R10 Take some bread crumbs along and have a lovely afternoon out at Zoo lake feeding the ducks and geese. You can also rent out a row boat which fits up to 6 people. You’ll have a great time paddling about. The boat club is open from 9.30am to 5pm from Tuesday to Sunday (it’s closed on Mondays). You can also go bowling at the bowling green or have a picnic.

15. The Momentum World of Golf

Cost: R139.

The Momentum World of Golf is a peaceful place to practice every shot imaginable. R139 gains non-members entrance and access to all facilities except the fitness centre and grass tees.

Contact: 011 545 8600.

Gauteng Gateway // 29

TRAVEL

many names including Soccer City. It’s built in the shape of a Zulu clay pot traditionally used for serving umqombothi.

Vuvuzelas welcome.

19. Wits Origins Centre

plements and baby food. It also stocks cleaning products and kitchen equipment. One added bonus are the detailed vegetarian recipes available for free at the store.

18. See Kaizer Chiefs in the biggest stadium in Africa

The biggest stadium in Africa, the FNB stadium, goes by

16. The Orbit

Cost: From R120.

The Orbit is a warm bistro with serious jazz performances. Open from Tuesday to Saturday from 5.30pm to 1.30am. +27 11 339 66 45, 81 de Korte Street, Braamfontein.

Booking in advance highly recommend-ed.

17. Fresh Earth Food Fresh Earth Food Store 30 // Gauteng Gateway

was established with the aim of fostering a new understanding of healthy eating and sustainability. It’s delicious vegetarian dishes are prepared from scratch and they don’t contain any artificial additives, sweeteners, colorants or preservatives, so the meals are nutritious and healthy.

Not only does Fresh Earth offer tasty vegetarian treats, but here you can also shop for healthy groceries, sup-

Tickets cost R40.

A unique museum dedicated to celebrating the origins of human kind including fascinating rock art. Au-dio tours available. On occasion there are public lectures in the evenings. Open every day from 10am to 5pm. Yale Rd & Enoch Sontonga Avenue. 011 717 4700.

20. The Military History Museum

Cost: R30 Artifacts from Umkhontowe-Sizwe, the Anglo-Boer War, the Anglo-Zulu war and various other historical battles are on display. Open daily from 9am to 4:30pm.

22 Erlswold Way, Saxonwold.

Call 011 646 5513. v

PROPERTY DEVELOPMENT

SANDTON GATE

T

he new Sandton Gate development promises a massive new commercial, residential and working dis-trict on the doorstep of the country’s financial hub.

The precinct overlooks the Braamfontein Spruit, one of Johannesburg’s longest natural greenbelts, while being a few minutes away from Sandton CBD. It is also located on both the Gautrain and BRT bus routes, meaning commuters are easily connected to Sandton Gate from across the city.

Features The mixed-use precinct will combine commercial, residential and retail space, and will also facilitate active lifestyles in a green, lush precinct.

32 // Gauteng Gateway

A R3 Billion Eco City

PROPERTY DEVELOPMENT Other Key features include: • Premium-grade office space totaling approximately 75,000 square, connecting tenants easily to all facilities and services.

• Connectivity via high-speed fibre, gives residents and businesses easy internet access.

• A number of modern residential apartments overlooking the Braamfontein Spruit.

• Specialist retail offerings includes restaurants, cafes, specialist stores and fitness facilities.

• Pedestrian friendly piazzas & walkways offer tenants in both apartments and offices the space to relax.

• State of the art security installations will secure the precinct so that those within Sandton Gate can have complete peace of mind, 24/7.

The first phase of Sandton Gate will include all the necessary infrastructure, will commence in the latter part of 2017,

and is a collaboration between Abland Property Developers and the Tiber Construction group.

This initial phase will include 10,000m2 – 15,000m2 of commercial office space, and a residential component. Thereafter, the development will progress according to market demand.

The Sandton Gate precinct is envisioned as an eco-friendly smart mini-city, that will serve as a commer-cial and residential hub within the greater Sandton area.

It will be located on William Nicol Drive, in the middle of four commercial nodes, namely Sandton CBD, Bryanston, Randburg and Hyde Park.

The commercial construction of the first phase is expected to be completed and launched for availability by the end of 2019. v

WEALTH

Citadel Wealth Management A forward-thinking approach, always supported by research

T

here’s a culture of curiosity at Citadel. The result is deep insights, which translate into future-focused decisions.

Nowhere is this more evident than in our approach to asset management.

remain consistent.

Planning your legacy As your wealth management partners, it’s our job to make sure your money is invested smartly. But, we also consider the next generation.

How do you benefit?

Our specialist team of asset managers seeks out research, locally and globally.

The goal is to determine economic outcomes in the medium- to longterm. A wide range of asset classes is assessed. Drivers and sources of returns are evaluated. In-depth understanding is sought.

There’s no crystal ball.

Our team of fiduciary specialists works practically, devising a strategy that includes your will and any trusts.

We span jurisdictions – local and international – ensuring that all legal and tax requirements are taken care of. The aim is to craft a solution that’s sustainable and relevant for you and your family.

This insight into the fundamentals of each asset class is then used as the basis to construct and manage the different portfolios for our clients, over time.

Markets may change, but our objectives 34 // Gauteng Gateway

Understanding you.

But before we do the planning, we have conversations with you to fully understand you and your life-

style. Marriage? Children? Unique circumstances? We also gather a detailed picture of your assets, and your intended purpose for your wealth.

Naturally, these sensitive conversations are kept completely confidential.

How do you benefit?

With a thorough fiduciary plan comes peace of mind. Postponing these important administrative details can have profound consequences for your heirs. Let’s get things sorted, today. v

CITADEL Telephone: +27 11 722 7600 Physical address: Peregrine Building, 6a Sandown Valley Crescent, Sandown, Sandton, 2196 Postal address: PO Box 650777, Benmore, 2010

MANUFACTURING

SA’s Manufacturing Industry is Optimistic Courtesy of Brand SA

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here is a huge potential to grow South Africa’s economy by fostering and instilling confidence in the domestic business in the economy.

If confidence improves, then foreign capital moving out of South Africa can be reversed, while local business can benefit from greater volumes of new fixed capital investment.

Agriprocessing industry Agriculture contributes 4% to South Africa’s gross domestic product (GDP) and consists largely of cattle and sheep farming, with only 13% of land used for growing crops.

Maize is most widely grown followed by 44 // Gauteng Gateway

wheat, oats, sugar cane and sunflowers. The government is working to develop smallscale farming in efforts to boost job creation.

Citrus and deciduous fruits are exported, as are locally produced wines and flowers.

The agri-food complex contributes approximately R124 billion to South Africa’s GDP and employs 451 000 people in the formal sector. Exports of processed agricultural products amounted to R17.2 billion in 2001.

The election of Cyril Ramaphosa as President of South Africa has resulted in many economists, industry experts, and analysts becoming clearly more optimistic of a ‘new dawn’.

There is enthusiasm about the prospect of Ramaphosa creating a climate that is far more conducive to growth and investment by combining his talent for consensus building with his understanding of the needs and demands of both business and labour. it both an important trading partner and a viable investment destination. A world-class infrastructure, counter-seasonality to Europe, vast biodiversity and marine resources, and competitive input costs make the country a major player on the world’s markets.

South Africa has a diversity of climates, ranging from semi-arid and dry to subtropical. As a result, a diversity of crops, livestock and fish are to be found.

The establishment of preferential trade agreements, such as the Africa Growth and Opportunity Act (AGOA) for the US market and a free trade agreement with the European Union, confer generous benefits.

The South African agri-food complex has a number of competitive advantages, making

The automotive industry is one of South

MANUFACTURING Africa’s most important sectors, with many of the major multinationals using South Africa to source components and assemble vehicles for both the local and international markets.

European Union and the Southern African Development Community free trade area.

Opportunities also lie in the production of materials (automotive steel and components).

Despite its distance from some of the major markets South Africa, produces high quality products at prices competitive with other automotive manufacturing and assembly centres.

South Africa’s aim is to become an automotive investment destination of

The South African automotive and components industry is growing rapidly and is perfectly placed for investment opportunities. Vehicle manufacturers such as BMW, Ford, Volkswagen, Daimler-Chrysler and Toyota have production plants in the country, while component manufacturers (Arvin Exhust, Bloxwitch, Corning, Senior Flexonics) have established production bases in the country.

The industry is largely located in two provinces, the Eastern Cape (coastal) and Gauteng (inland). Companies with production plants in South Africa are placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the

choice. Modernisation and upgrading of key elements in the automotive industry are required to keep pace to achieve international competitiveness.

Interest rates are currently at historic low levels, reducing the cost of investments.

It is significant to note that most major multinational vehicle manufacturers are

MANUFACTURING

currently represented in SA, which means that international developments also impact on the country. The outlook for the vehicle industry is bright in terms of both exports and the domestic market.

A key challenge will be to raise local content, particularly in the vehicles now being exported in large volumes.

Chemicals industry The chemical industry has been shaped by the political and regulatory environment which created a philosophy of isolationism and protectionism during the apartheid years. This tended to foster an inward approach and a focus on import replacement in the local market.

It also encouraged the building of small-scale plants with capacities geared to local demand, which tended to be uneconomic.

Through isolation of the industry from international competition and high raw material prices as a result of import tariffs, locally processed goods have generally been less than competitive in export markets. Now that South Africa is once

46 // Gauteng Gateway

South African chemical companies are focusing on the need to be internationally competitive and the industry is reshaping itself accordingly...

is prominent, with South Africa being world leader in coal-based synthesis and gas-to-liquids (GTL) technologies.

South Africa’s chemical industry is of substantial economic significance to the country, contributing around 5% to the gross domestic product (GDP) and approximately 25% of its manufacturing sales.

more fully part of the global community, South African chemical companies are focusing on the need to be internationally competitive and the industry is reshaping itself accordingly.

The industry is the largest of its kind in Africa. It is highly complex and widely diversified, with end products often being composed of a number of chemicals which have been combined in some way to provide the required properties and characteristics.

Two noticeable traits characterise the South African chemical sector.

Firstly, while its upstream sector is concentrated and well developed, the downstream sector – although diverse – remains underdeveloped. Secondly, the synthetic coal and natural gas-based liquid fuels and petrochemicals industry

The primary and secondary sectors are dominated by Sasol (through Sasol Chemical Industries and Sasol Polymers), AECI and Dow Sentrachem.

These companies have recently diversified and expanded their interests in tertiary products, especially those with export potential.

MANUFACTURING

ICT and electronics industries The South African information technology (IT) industry growth outstrips the world average. The country’s established and sophisticated indigenous information and communications technology (ICT) and electronics sector comprises more than 3 000 companies and was ranked 22nd in terms of total worldwide IT spend. It has ready access to cutting edge technologies, equipment and skills and has the advantage of access to the rapid expansion of telecommunications and IT throughout the African continent.

Metals industry South Africa’s large, well-developed metals industry, with vast natural resources and a supportive infrastructure, represents roughly a third of all South Africa’s manufacturing.

It comprises basic iron ore and steel, basic non-ferrous metals and metal products.

The iron and steel basic industries involve the manufacture of primary iron and steel products from smelting to semi-finished stages.

Ranked the world’s 19th largest steel producing country in 2001, South Africa is the largest steel producer in Africa (almost 60% of Africa’s total production).

Primary steel products and semi-finished products include billets, blooms, slabs, forgings, reinforcing bars, railway track material, wire rod, seamless tubes and plates. South Africa is a net exporter, ranked 10th in the world, to more than 100 countries.v

South African software developers are recognised as world leaders in innovation, production and cost efficiency backed by an excellent local infrastructure. This sector can be divided into three main sub-sectors: telecommunications, electronics and information technology.

The telecommunications industry is thriving, contributing more than 7% to South Africa’s gross domestic product (GDP). With approximately 5,5 million installed fixed-line telephones, South Africa is ranked 23rd in telecommunications development in the world and represents more than 30% of the total lines installed in South Africa.

The South African electronics industry has repeatedly proved itself in terms of worldclass innovation and production.

The industry is characterised by a handful of generalist companies with strong capabilities in professional electronics, while small to medium companies specialise in security systems and electricity pre-payment meters.

Investment opportunities lie in the development of access control systems and security equipment, automotive electronic subsystems, systems and software development in the banking and financial services sector, silicon processing for fiber optics, integrated circuits and solar cells.

There are also significant opportunities for the export of hardware and associated services as well as software and peripherals.

Gauteng Gateway // 47

FASHION

Accessorizing The LBD (Little Black Dress)

BY NESSAH

T

he shade alone – black – holds such significance.

It’s the fashion uniform for a reason. You cannot go wrong in black. Not only that, black imbues contradictory sensory associations. It is severe and seductive, demure and raven, posh and discreet, austere and chic and it will always exudes elegance.

The little black dress is centuries old but still remains every woman’s wardrobe staple and it is surely the epitome of true style and elegance. For anyone who masters the art of accessorizing a little black dress I believe a price should be given because as simple as it is only the right accessories could either make or break the elegance The brilliance of the LBD is its versatility, and that adaptability comes down to the accessories. By thinking outside the box when it comes to what you pair with this beautiful black canvas, you can switch up your look for every season or event.

“One is never You’ll always look striking and classic in the simple sleek dress and a pair of heels, but sometimes you just need to 50 // Gauteng Gateway

overdressed or underdressed in a little black dress” – Karl Lagerfeld.

shake up the ordinary.With the ability to either be dressed up or down, here is how you can take a basic LBD and wear it at two different times of the day.

For an afternoon event, no one needs to go overboard so the dress should be fun, flowy and flirty. Whether you are in the company of your friends or your better half noone will go wrong with a foot baring sandal, a watch and either dangling earrings or a necklace (because wearing both could turn out bulky). Cinch the waist with a little sparkle belt and voila! you are ready.

“Scheherezade is easy; a little black dress is difficult.”

– Coco Chanel

For an evening of cocktails or a semi formal event one can ensure elegance by not only allowing the dress to shine but by actually pairing the dress with some sparkle and shimmer to catch the light and other guests’ eyes.

A more structured, figure hugging ensemble will do the trick.

Accompanied by strappy heels for a touch of sexiness, a sleek hair updo and a pair of sparkling earrings to compliment the whole look. v

Gauteng Gateway // 51

TECHNOLOGY

Internet of Things (IoT) Trends in South Africa

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he Internet of Things (IoT) is rapidly changing our world, how we live and do business.

Anything that can be connected will be and every machine will be connected with the aim to improve lives and positively impact businesses. Global predictions vary, with anything from 12 billion to 30 billion IoT devices expected to be connected to the

Analysis are forecasting that the IoT installations in South Africa will reach 35 million by 2020...

52 // Gauteng Gateway

internet by 2020. Analysis are forecasting that the IoT installations in South Africa will reach 35 million by 2020. The number of connected things will be unprecedented and IoT could solve many of the issues Africa is facing – especially those caused by social and economic challenges.

Here is a list of current or potential IoT value propositions that we’re likely to see in action in future: Agriculture Sensors placed in the soil enable farmers to track acidity levels, temperature and other variables to assist in improving crop yields. Biochip transponders help keep track of animals, for example connected cows. Access to real-time

information, such as weather conditions, and interconnectivity with operators, dealers, buyers and agricultural consultants can help farmers enhance productivity and increase efficiency.

Vodacom’s Connected Farmer platform as an example will link thousands of smallholder farmers to the agriculture value chain.

Mining The mining sector is using sensors to detect dangerous methane levels and rock movement in mines to improve workplace safety.

Petroleum industry Fuel pipelines are fitted with sensors to monitor for leaks.

TECHNOLOGY

Manufacturing Manufacturers use smart sensors to enable real-time plant monitoring and optimisation. For example, an overheating machine in a factory might send an alert to a supervisor.

Utilities Some local municipalities are already using internetconnected smart metres to measure household utility usage.

These devices can be used not only to measure power and water usage and provide feedback to customers, but also automatically adjust the system’s parameters based on demand. Municipalities could also use IoT to track refuse collection and emptying.

Retail Product and shelf sensors could automatically trigger stock orders as shelves empty. Predictive analytics could help optimise this process. Merchants could use smart beacons to track customers in-store so that they can optimise the layout of their stores.

Hospitality sector Some hotels are already using infrared sensors to detect body heat so that staff know when rooms are empty and can enter to clean them.

Connected elevators Systems could enable data from elevator sensors to be monitored, analysed and displayed in real-time, improving equipment performance, reliability and safety.

Gauteng Gateway // 53

TECHNOLOGY

Traffic Intelligent traffic lights are helping to ease traffic congestion. These smart traffic control systems are using real-time data and mimicking human reasoning to make effective traffic routing decisions.

Transport The concept of placing a SIM card into a vehicle to track its performance was born in South Africa. Connected cars are becoming mainstream, designed to offer infotainment and other in-vehicle digital services for drivers. Connected car technology can assist in avoiding traffic and finding a parking space, even parking the vehicle for you. In fleet management, some businesses are already using telematics to track the location of their vehicles, monitor driver behaviour and route efficiency.

Logistics Sensors placed on parcels or shipping containers help track goods, reducing costs associated with lost or damaged items. Logistics services alerts let customers know the delivery time for a parcel or when a service provider will arrive based on the real-time data from

a vehicle tracker. Vehicle telematics can also be used to monitor traffic data and reduce food wastage during transport.

Business IoT technologies enable employee mobility and help the business bottom line by lowering operating costs, enhancing productivity and allowing borderless enterprise. Small companies can selectively use the technology to transform their business processes, drive efficiencies and serve their customers better. Affordable mobile apps and point of sale devices enable plumbers, electricians and other mobile traders to

Logistics services alerts let customers know the delivery time for a parcel or when a service provider will arrive based on the real-time data from a vehicle tracker. record customer details, draft quotes and invoices and obtain payments on the go.

Connected home A smart, connected home can help its occupants improve energy efficiency and control security through remotecontrolled thermostats, door locks, lights and security cameras.

Wearables You probably know someone who wears a fitness tracker or smart watch. Taken to the next level, sensors in running shoes for example, will track distance. In future, wearables will focus on specific tasks with the smartwatch as the central network hub, leading to the “Internet of the Body�.

Health Healthcare will be the leading application of wearables over the next few years, using smartphones and

54 // Gauteng Gateway

TECHNOLOGY

driver behaviour and reduce incidents.

However, as commuters look to Uber services, self-driving cars and even Commuter Cars, where a car is hired for a single trip, insurers will need to adapt their cover accordingly, perhaps insuring per trip in the future or even insuring the person based on their driving behaviour as monitored through vehicle/wearable tracking units.

wearables to monitor a person’s health remotely.

Stock Visibility Solution, which is a custom-built using mobile application, monitors medicine stock levels and assists in reducing medicine stock-outs across remote clinics.

Connected pets A further application of wearables is to keep track of and monitor the health of pets.

Wildlife monitoring Endangered animals (like the black rhino) are being given an ankle collar that is connected to the globalIoT network and which relays movement and exact geo-location data back to antipoaching teams.

Usage-based insurance Due to vehicle telematics, driver behaviour based solutions are now offered by insurers as a tool to improve

Banking and Payments Artificial intelligence is being used in banks for automatic check readers and signature verification systems, together with cameras for automated face detection, for automatic location recognition from your web surfing and for automatic fraud detection. In the future, we may see teller-assist ATMs provide a live-stream video of a teller for enhanced customer support.

Education We’re moving from online courses to a fully digitised classroom of the future.

Mobile app ‘Cognition Online’ allows parents and students to find tutors in their area by subject specialisation, book lesson times and pay easily. Tutors can accept bookings via the app and receive their payment from Cognition Online.

Parents and tutors are free to negotiate fees and both tutors and pupils can be rated by the system. v

Gauteng Gateway // 55

Safety remains a focus area

Courtesy of PwC

Mining Sector Overview

T

he 2017 financial year was another tough one for stakeholders in the mining sector.

Despite the improved financial performance, regulatory announcements in June 2017 resulted in market capitalisation dropping to June 2015 levels. The subsequent recovery to the end of August was aided by improved USD prices and hope by investors that the suspended new Mining Charter would be revised before final implementation.

South Africa’s mining landscape The 2017 financial year was another tough one for stakeholders in the mining sector: • Investors in aggregate saw a decrease in dividends and market capitalisation after a cautiously optimistic view on a recovery last year; • Decreases in precious metal rand prices have put a lot of pressure on conventional deep-level platinum and gold mines’ profitability and sustainability; 56 // Gauteng Gateway

• Tax authorities only saw marginal increases in taxes paid; • Employees experienced further retrenchments with the prospect of more to come; and • On the fifth anniversary of the Marikana tragedy, communities around some mines are still desperate for improved service delivery and employment.

The negative environment has been offset somewhat by the excellent recovery in the prices of coal, iron ore, manganese and chrome over the last 18 months.

Mining companies that have repositioned themselves within the current low-price environment have also started to see the benefits of cost saving initiatives reflected in lower operating cost increases.

Identification of risks Cybersecurity It is not surprising to see cybersecurity being included as a risk by some companies.

for all mining management and is probably one of the biggest success stories for the mining industry over the last 20 years.

PwC’s Global state of the information security survey data shows that the compound annual growth rate (CAGR) of detected security incidents has increased 66% year on year across all industries since 2012.

Safety Safety remains a focus area for all mining management and is probably one of the biggest success stories for the mining industry over the last 20 years. Statistics provided by the DMR show a downward trend in fatalities for the industry as a whole over the past 10 years, indicating that investments made in safety initiatives by both companies and the DMR are delivering positive results.

Improving value to stakeholders • Total value created by the entities analysed

MINING increased by 12%, from R161 billion to R180 billion. The increase is largely attributed to improving commodity prices and a significant cost focus.

• Funds reinvested in the form of capital additions and acquisitions is 12% of total value created (2016: 20%), which is significantly lower than previous years.

• Companies continue to feel the burden of high labour costs, adding pressure on margins. This, despite a reduction in the number of employees. The value received by employees represented 40% of total value created (2016: 39%).

Working capital After the well-publicised liquidity concerns of the last two years, ongoing debt restructuring and a return to profitability resulted in improved liquidity ratios.

The acid ratio of 1.2 has again improved to be above the average and is again at a very acceptable level. However, the average

rate hides the individual low liquidity experienced by some companies. Ten (2016: 12) had acid ratios of less than 1.0 and worse still, six (2016: eight) had current ratios of less than 1.0.

at Anglo American Platinum (R7.6 billion), Gold Fields (R3 billion) and Exarro (R2.8 billion) were partially offset by the R8 billion reduction at Lonmin after its rights issue and debt restructuring.

A large number of companies have made significant effort to restructure their balance sheets, preserve cash and contain costs.

Liquidity risk is still a major concern, as reflected in various integrated reports, where strategies to address the issue have been shared. Cash increased by a further R11 billion from the prior year (R11 billion increase in 2016).

Financial performance • Revenue increased by 13% (R43 billion) from the prior year. This is the first substantial increase in more than five years.

• Operating expenses increased by R13 billion, which is a 5% increase from the prior year.

• Labour cost increased by 4.5%, which was marginally below inflation.

• The ten-year summary shows flat revenue with significantly reduced profitability as a result of continued increases in cost pressures and marked impairments.

• The improvement in the current year does provide hope of some recovery for the sector. v

Current liabilities increased by R10 billion from the prior year, indicating that the cash increase might be a temporary difference in settling trade payables (R8 billion increase) rather than a real cash improvement.

Significant increases in current liabilities

Mark Mulder and Annie Robinson in Fawlty Towers

Daphne Kuhn presents an exciting line up for 2018 in addition to the classical and jazz programmes, conferences, seminars, children’s showcases and fundraisers at the Auto & General Theatre on the Square in Sandton.

FINANCE

Sygnia Capital

Sygnia is an innovative FinTech company based in

South Africa and listed on the main board of the JSE

T

he company provides asset management, stockbroking and administration services, as well as a wide range of savings products, to institutional and retail clients. All that we do is supported by leading-edge technology platforms.

Sygnia at a glance: •R 184 billion in assets under management and administration •R 14 billion in unit trusts since launch in 2012 •O ver 600 institutional clients (domestic and international) •O ver 6 000 individual clients •O ffices in Cape Town, Johannesburg and Durban •O ver 195 staff

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•M arket disruptor business strategy •F ocus on innovation through technology •M ost cost-effective savings products in South Africa, with fees starting at 0.35% ex VAT per annum • L evel II contributor in terms of the Financial Sector Charter Our services Sygnia manages and administers assets on behalf of over 600 domestic and international institutional clients, and over 6 000 individual clients.

The integrity of these relationships is the core of our business.

Our services include: •A sset management

• • • • •

ransaction management T Investment administration Liability administration Stockbroking Digital financial advice

You can access our services via: • Segregated accounts • Personal share portfolios • Unit trusts • Unitised life funds • Umbrella funds • Retirement annuities • Preservation funds • Living annuities • Endowment policies v

Sygnia manages and administers assets on behalf of over 600 domestic and international institutional clients, and over 6 000 individual clients.

PERSONAL FINANCE

Important Lessons About Money Adapted from Natasha Burton’s Daily Worth 1. Think about money Many people have complicated feelings about money — from being intimidated by it, to associating wealth with being greedy, to hating it. This can lead to the thinking that finances shouldn’t be a priority.

In order to change your attitude from apathetic or apprehensive to proactive, you must first understand your emotions and preconceived feelings.

The goal is to get to a place where you actively care about finances and don’t feel a sense of guilt for doing so. You must control your money on a constant, day-today basis, and once you start doing this, 60 // Gauteng Gateway

you should never stop.

2. Talk about money Talking about money — with a spouse or a parent, for example — is often harder than thinking about it. Most couples talk about money only when they’re in crisis situations, if at all. Instead, learn to regularly discuss money so it becomes less taboo, frustrating, or fight inducing.

In families, financial conversations can get heated and judgmental, with one person feeling he or she is right and someone else is stupid or incompetent or irresponsible.

3. Live within Your Means To really live at a level you can afford, you

There are many truths in starting and operating a successful business. Many business truths are common sense concepts – like if you run out of cash, your business might not make it.

But, you can also draw on general life lessons when growing your business have to modify your lifestyle slightly and live below your means. This is really the key to financial success. There are so many ways to live comfortably without spending every penny, but this lesson eludes so many.

Look at your budget and spending habits as a project that requires ongoing monitoring and occasional adjustments.

For example, if you keep tabs on where your discretionary spending is going, you can evaluate how to reallocate some of that impulse or unnecessary spend toward saving for a meaningful goal like a down payment on a home or a great holiday trip. Hold yourself accountable with an

app, a journal, an accountability partner — whatever works to keep you on track.

today translate into funding those future goals.

4. The Budget Most people equate the word ‘budget’ to crash dieting, where you’re sacrificing your short-term comfort and denying yourself specific pleasures. In both cases, the ultimate goal of financial or physical health might not be enough to sustain the denial cycle.

7. Save for Retirement Many people use the “set it and forget it” approach to their retirement savings, People start a new job, eventually get around to joining the company retirement plan, and when they do, they choose the simplest investment options and never go back to review [them] again. This could lead to trouble later on, especially if you don’t know what’s in those funds.

Managing your money effectively is a lifestyle, not a quick fix. A strategy for staying on track — and not feeling deprived — is to budget month to month.

5. Prioritize Your Budget Identify what truly matters to you when it comes to how you want to spend your money. It could be your living space, traveling, going out to theatre — make sure you plan for that first. If you rent an expensive apartment, you’ve made the decision that a bunch of your income is going toward your living space — make sure that is truly what is most important to you. If you feel like you’re not spending your hard-earned cash in a way that’s making you happy, start paying closer attention.

6. Save Smarter Don’t just save for the sake of saving as much money as you possibly can. Put your financial goals in context first so you understand exactly how all of your savings

Start by being more proactive about your retirement account. Investing in the stock market might sound like something you don’t want to deal with. The main thing to do is make sure you diversify your investments to lower your investment

risk. You shouldn’t over-invest in any one sector — like technology — or in any single investment style, such as growth stocks or value stocks. Spread your risk in various options.

8. Track Your Money As with many things in life, your relationship with money — and how you track it — is very specific to who you are.

Don’t just jump on the latest financial bandwagon or trendy app or use a money platform you’re “supposed” to use but don’t actually like.

Instead, find the money habits that suit your personality and ensure that you’ll stick with them. If you need to change who you are to use an app, a store program, a points credit card, forget it. v

Gauteng Gateway // 61

Add these Activities to your Gauteng Itinerary Soweto tours.

Union Buildings.

Magaliesburg Mountain Range.

Apartheid Museum.

Johannesburg Zoo. Constitution Hill.

Walter Sisulu Botanical Gardens.

Emmarentia Dam. Pretoria Botanical Gardens.

The Lion Park.

The Cradle of Humankind.

Lilliesleaf Farm.

Gold Mine Tours.

Cullinan Diamond Mine.

Crafts and Farmers’ markets.

Multicultural Fine Dining.

Boating and waterskiing.

De Wildt Cheetah Sanctuary.

Hang gliding.

Birding.

Parachuting.

Hot Air Ballooning.

Wild Cave Adventures.

Bungee jumping.

World Class Golf Courses.

CEO PROFILE

Spotlight on

Phuti Mahanyele

PHUTI MAHANYELE IS THE FORMER CEO OF SHANDUKA GROUP, A MULTI-BILLION RAND DIVERSIFIED AFRICAN INVESTMENT HOLDING COMPANY THAT WAS ESTABLISHED IN 2001.

SHANDUKA HELD A DIVERSIFIED PORTFOLIO OF LISTED AND UNLISTED INVESTMENTS, WITH HOLDINGS IN VARIOUS SECTORS INCLUDING RESOURCES, TELECOMS, REAL ESTATE, ENERGY, INDUSTRIALS AND FOOD & BEVERAGE, ACROSS VARIOUS JURISDICTIONS INCLUDING SOUTH AFRICA, NIGERIA, MOZAMBIQUE, MAURITIUS AND GHANA.

Courtesy of Sigma Capital

S

he joined Shanduka in 2004 as the Managing Director of Shanduka Energy. Ms Mahanyele was previously Head of the Project Finance South Africa business unit at the Development Bank of Southern Africa.

Prior to that she was Vice President at Fieldstone, an international firm specialising in the financing of infrastructure assets. She joined them in New York in 1997 and later transferred to the South African office.

In her tenure as CEO of Shanduka Group, she held directorships with a number of companies, including inter alia Lonmin Plc, Mondi, McDonalds SA, Coca Cola Shanduka Beverages, Macsteel and Helios Towers (Nigeria).

She has been awarded the Forbes Woman Africa Business Woman of the Year Award and the Platinum Award

by Motlekar Holdings BBQ Awards in 2014. In 2013 she was awarded a “Distinguished Achievement” by 64 // Gauteng Gateway

The Douglass Society, and the Africa Investors recognised Ms Mahanyele as a “Leading Africa Woman in Business of the Year” in 2012, 2011 Rutgers University conferred on her the “Rutgers Vision of Excellence Award”. In 2009 she was awarded the “Most Influential Woman in Government and Business by Financial Services.

And Wall Street Journal counted her among one of the “Top 50 women in the world to watch in 2008”. Ms Mahanyele was also selected as a Global Young Leader in 2007 by the World Economic Forum and awarded “Top in Project Finance, 2003” by the Association of Black Securities & Investment Professionals (ABSIP). She is involved in a number of activities with youth in her personal capacity. She is currently mentoring young professionals and

students.

She is involved with the “Dignity Day” programme which is led by Young Global Leaders of the World Economic Forum and is focused on re-enforcing the values of dignity in young people.

She is also a Patron of NEET (National Education Empowerment Trust).

She is currently a non-executive director on the boards of Blue Label Telecoms Limited, Comair Limited and Reunert Limited.

She holds a BA Economics from Rutgers University, USA, and an MBA from De Montfort University in Leicester, UK. Ms Mahanyele completed the Kennedy School of Government Executive Education program ‘Global Leadership and Public Policy for the 21st Century’ at Harvard University in 2008. v

Gauteng Gateway // 65

SOCIAL RESPONSIBILITY

T

ts objective is to lift the spirit of our nation by inspiring all South Africans to contribute to positive change, become involved and start doing – because a nation of people who care deeply for one another and the environment in which they live is good for everyone. The campaign is driven by the Brand South Africa.

AIMED AT ALL SOUTH AFRICANS Play Your Part is aimed at all South Africans – from corporates to individuals, NGOs to government, churches to schools, young to not so young. It aims to encourage South Africans to use some of their time, money, skills or goods to contribute to a better future for all.

There are numerous opportunities, big and small, for each and every South African to make a positive difference in the communities in which they live and operate. Play Your Part encourages them to act on these opportunities. v

Play Your Part is a nationwide movement created to inspire,

empower and celebrate active

citizenship in South Africa.

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SOCIAL RESPONSIBILITY

Sophie Kanza

Building a Supportive, United and Tolerant Society

P

lay Your Part ambassador, Sophie Kanza is the co-founder of the Sophie A. Kanza Foundation, which she runs with her sister Louise, with whom she migrated to South Africa from the Democratic Republic of Congo over 20 years ago.

The Foundation is a fully self-funded, fundraiser and youth led organisation. It focuses on recruiting youth as volunteers to collect and distribute food, clothes and toiletries to those in need. Sophie hopes that by encouraging youth to go out and make a difference in other people’s lives, she is playing her part in building a supportive, united and tolerant society.

Through the Foundation, Sophie uses PanAfricanism to spread love, unity, peace and tolerance in a number of youth volunteerism projects. The Foundation’s volunteers are made up of mostly Congolese and South African youth. Other African nationals also

participating are from other countries like Zimbabwe, Botswana, Zambia, Tanzania, Ivory Coast, Gabon and Malawi.

In efforts to encourage love, unity, peace and tolerance, the Sophie A. Kanza Foundation created a social awareness campaign called ‘#Singabantu – We Are Human’ to challenge the negative stereotypes of foreign nationals living in South Africa. Out of this campaign came a short film of the same name.

into a nationwide wave of attacks believed to have been driven by xenophobia. The film has, since its launch on Africa Day 2017 (25 May 2017) won the United Nations Alliance of Civilizations Plural Plus Award and been nominated at the Soeul Film Festival South Korea, which took place in May 2018 and the Africa Film Festival NYC USA which is in August 2018.

For more information on the Sophie A. Kanza Foundation, follow @SophieKanza on Twitter. v

The film was shot in the remains of a Rosettenville house burnt to the ground during service delivery protests that turned

Sophie uses PanAfricanism to spread love, unity, peace and tolerance in a number of youth volunteerism projects.

CITADEL Telephone: +27 11 722 7600 Physical address: Peregrine Building, 6a Sandown Valley Crescent, Sandown, Sandton, 2196 Postal address: PO Box 650777, Benmore, 2010 Gauteng Gateway // 67

PETROLEUM

‘South Africa has investment opportunities across the economic spectrum’ – SASOL CEO

S

asol Limited Chief Executive Officer and Joint President Mr Bongani Nqwababa, joins the list of multinational CEOs who provide testimonials on Brand South Africa’s CEOs Know campaign – why their corporates continue to invest in South Africa – while highlighting South Africa’s competitive strengths as an attractive foreign investment destination.

In his interview, with Brand SA, Nqwababa said that he is inspired by how resilient South Africans are as well as their ability to overcome adversity.

The country is a great investment destination because it not only has opportunities in the resources, but also has opportunities across the economic spectrum.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 30 300 people working in 33 countries. The multinational develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, chemicals and low-carbon electricity.

Sasol was established in 1950 in South Africa and we remain one of the country’s largest investors in capital projects, skills development and technological research and development. The company is listed on the JSE in South Africa and on the New York Stock Exchange in the United States.

“As the most industrialised country in Southern Africa, South Africa offers opportunities for companies to grow domestically and also for them to 68 // Gauteng Gateway

expand into the African continent.

From an FDI perspective, South Africa is a wonderful place to invest in for a variety of reasons – our legal system is developed, our courts and judiciary are independent, we have sound financial systems, and well-developed local capital markets,” said Nqwababa.

Brand South Africa – in collaboration with Business Leadership South Africa launched the CEOs Know campaign to position South Africa as in ideal investment destination. The CEOs Know Campaign features various CEO’s from multinational corporations based in South Africa, who share insights behind their continued investment into South Africa. v

South Africa is a

wonderful place

to invest in for a

variety of reasons – our legal system

is developed, our

courts and judiciary

are independent, we

have sound financial

systems, and welldeveloped local

capital markets,”

said Nqwababa.

PETROLEUM

SA’s Petroleum Industry Impacts R324 Billion on National GDP

B

rand South Africa’s digital campaign themed CEO’s Know has engaged the nations petroleum sector, which represents close to 9% of the GDP and directly employs approximately 100 000, and indirectly employs 700 000 people.

Positioning South Africa as an attractive investment destination is interlinked to the growth and development of the nation which depends extensively on the economic empowerment and meeting the needs of all economic citizens – the people and their enterprises – in a sustainable manner.

And it is in this regard, that the petroleum industry’s impact in the energy sector and the economy has been extensive.

Pierre-Yves Sachet MD and CEO of Total says the industry’s successes is a result of the country’s conducive investment climate.

Commenting on his interview for the CEOs Know campaign, Mr Sachet said: “South Africa is a great place for investment for various reasons due to the numerous

With an impact of R324 billion

on national GDP, South Africa’s incentives that are in place, and the most iconic of these has to be the 28% company tax which probably one of the lowest in the entire Africa parameter.”

South Africa’s Constitutional Democracy, Rule of Law, exemplary judiciary which continues to demonstrate high levels of resilience and the country’s prudent fiscal management and monetary policies, sound financial system, and world class infrastructure indicate that the country remains the continent’s leading Foreign Direct Investment (FDI) hub. These are all aspects which Sachet says are important in fostering FDI to South Africa.

“South Africa has always been and remains one of the countries where the rule of law

petroleum industry plays

a key role in the economic

development and sustainability thereof of the country.

and independence of justice are respected and they work, and this is important for foreign investors,” adds Sachet.

Established in 1954 in South Africa – Total has grown its business in more than 130 countries. Total is now a major player in the oil, gas and chemical industries. Its shareholders and employees come from a diverse range of backgrounds. The Total brand’s presence in the Southern African region is made up of Total South Africa, Total Namibia, Total Botswana, Total Gauteng Gateway // 69

ENTREPRENEURSHIP

BY KAREL MARE The business landscape is a constantly evolving, living entity, that seems to defy rules of evolution.

Innovation for growth South Africa

Lack of innovation has led to the demise – albeit temporary for some – of more than 80% of Fortune 500 companies from the ‘60’s. Compaq, Kodak, Dell and more recently Toys R Us, all failed to innovate when negative growth and plummeting market shares sent alarm bells ringing.

Gauteng’s evolving skyline is a testimony to the tsunami of construction that continues to alter and morph our cities.

However, the arrogance bred by success convinces us that what we did yesterday, would be sufficient for tomorrow – William Pollard.

These companies were creative, but not innovative. Being creative implies that you create new things, innovation means doing new things.

C

omparing business technology, concepts and practices as recent as a year ago, and as far back as the ’60’s, can leave one in awe of the human mind’s ability to surpass the thinking of yesterday.

Innovation is not a science, and by nature has no E=MC2 formula to go by as there are no two industries that can be approached in the same way.

As a starting point, we can identify 4 essentials to the innovation process A Problem to Solve Gauteng’s evolving skyline is a testimony to the tsunami of construction that continues to alter and morph our cities. Essential to any commercial or residential construction project is concrete.

Yet ironically, concrete also presents one of the biggest problems (and postconstruction costs) to solve. Cracks.

US researchers are working on a self-

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ENTREPRENEURSHIP

Limited resources have resulted in a boom in solar power innovation. Solar paint developed by the University of Melbourne produces hydrogen fuel from solar energy.

The limitation becomes the catalyst to innovation.

healing concrete.

Inspired by the human body’s healing capabilities, bacteria and fungi are infused into the concrete matrix.

Dormant cells are activated by water/ oxygen when cracks appear, growing and expanding to fill the cracks.

Limited Resources Time, money, human capital, land, logistical constraints, clean air. All resources when at a deficit necessitate innovation.

Lack of production capacity is no longer touted as the evil behind load shedding in the region. Not enough coal where it is needed has resulted in systematic power supply reduction.

Willingness to fail Failure is essential to growth, and innovation. Quotes on the effect of failing have become a mantra of society, fueling the personal growth frenzy that has created countless millionaire authors and experts.

Adversely, the fear of failure continues to inhibit business innovation. Perceived risk outweigh’s anticipated growth and benefits. Yet inventions as mundane as bubble wrap – found in almost any package emblazoned with the word FRAGILE – is the result of failure.

Intended as a trendy new textured wallpaper in 1960, and later as housing insulation, it was only when IBM identified it’s potential as a packaging material that the failure became a success.

Crazy idea Creative Thinking as described by John C. Maxwell, demands that ideas are free from any constraints, has no tie to reality,

Time, money, human capital, land, logistical constraints, clean air. All resources when at a deficit necessitate innovation. and is – impossible.

South African born Elon Musk is a champion Crazy Idea thinker. The allelectric powered Tesla raised eyebrows when the concept was launched. Car makers Toyota, long considered industry leaders with their Prius models, become irrelevant overnight. To push the edge of crazy thinking, the Tesla has now been to pace on Musk ’s first SpaceX rocket.

Seth Godin talks about edge thinking.

Define the edges of your idea, and then push past them. There is no limit when it comes to crazy ideas.

Combining these four essentials provides a platform for the next Elon Musk or Richard Branson.

Gauteng has an abundance of problems, limited resources and crazy idea thinkers willing to fail repeatedly, making the province a hub of potential millionaires. v Gauteng Gateway // 71

BUSINESS

South Africa is part of the next big emerging market story of 2018, Goldman Sachs “Transformation and innovation is the name of the game and that is what inspires me about South Africa and the African continent,” says Goldman Sachs Partner MD, Head of Investment Banking in Sub-Saharan Africa – Mr Colin Coleman.

Coleman shared his insights on what makes South Africa an attractive investment destination during his interview with Brand South Africa for the CEOs Know campaign.

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major

72 // Gauteng Gateway

financial centers around the world.

The South African Governments Invest SA initiative which formalised a relationship with the World Bank to improve the country’s ease of doing business, coupled with dynamic and stable economy, solid economic fundamentals, prudent fiscal management and monetary policies are distinguishing factors that make South Africa an ideal investment location – said Coleman.

A recent assessment by Goldman Sachs indicates that South Africa is part of the

...prudent fiscal management and monetary policies are distinguishing factors that make South Africa an ideal investment location

BUSINESS “next big emerging market story” of 2018. It notes that the growth cycle is picking up after an earlier downturn in investment growth. It says that improved confidence is likely to lead to a better outlook for growth and investment.

This is confirmed by the South African Economic Update released this month by the World Bank. While the economy’s performance is improving, it notes that higher growth will require ambitious structural policies. It estimates that a successful conclusion of the Mining Charter deliberations, for example, could increase investment in the sector by 25 percent.

“South Africa is the hot emerging market for 2018 because it stands out in the post transition of the Presidency to Cyril Ramaphosa as an environment which offers opportunity. This political change together with the President’s economic policy , give a clear roadmap as to where South Africa is going,” said Coleman.

President Ramaphosa recently announced that a central priority for government

this year is to encourage significant new investment in our economy. Investment is necessary for the growth of our economy and the creation of jobs on a scale that will significantly reduce current levels of unemployment.

Coleman noted that South Africa’s modern market environment has seen South African companies venturing into the African continent to expand operations and has also afforded global corporates the opportunity to establish their business in South Africa.

“We at Goldman Sachs see South Africa

as a base for out African business and so do many other multinationals – and this is attributed to sound institutional framework built on the foundation of a Constitutional Democracy, sound regulatory framework as well as commercial and legal practices, which are line with those in the rest of the developed world.

“All of these attributes position the country positively and it is through the independence of institutions that the nation will be able to maintain business confidence,” added Coleman. v Gauteng Gateway // 73

PERSONAL DEVELOPMENT

Chris Mutale was born and raised in Zambia, an economist, a visionary, a motivator, and founder of Africa’s Next CEO – a leadership development program for African executives and entrepreneurs.

BY CHRIS MUTALE

The AFRICA challenge he issue of identity raises its ugly head in Africa where the average person has no great role models to emulate. A lot of our traditional and cultural history has gone with the past. Our fathers never left us the kind of inheritance that would have made us world leaders in what we do.

When they left, we had to start over again. Our fore fathers fought for independence but it would appear that upon obtaining the power to govern, we went and sat under a tree and enjoyed the local beer and told stories of the great struggle. We lived in yesterday’s glory and failed to build a vision to see us through to tomorrow.

Our weakness is seen in a consistent belief that someone somewhere will come and rescue us and do for us what we ourselves could never do. We look externally for money, for government

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“Our fore fathers fought for independence but it would appear that upon obtaining the power to govern, they went and sat under a tree and enjoyed the local beer and told stories of the great struggle” assistance, for foreign direct investment; we turn to Hollywood for entertainment, how much will USAID give us to help us feed the kids on the street, we listen to foreign preachers and motivational speakers to inspire us, we read books about the Wall Street; yet we do nothing for ourselves.

Truth is much of Africa has not played

PERSONAL DEVELOPMENT a part in the things we cherish and love the most. Our contribution to current technological trends has been minimalist at best. We survive on medicines manufactured in India and Canada.

man can only give you what he has.

We forget that a man can only take you where he has been. We wake up and chase the money and forget the most basic principles of wealth creation.

We sell our resources to the rest of the world and buy back the finished product at a much higher price because our

Identity Crisis We live in a society with an identity crisis, ready to accept and swallow

leaders refuse to get involved in the beneficiation process. Yet we expect to be wealthy. We elect leaders from among us and expect them to show qualities that we have never taught.

We forget the simple principle that a

anything. It’s a no holds barred “by any means necessary” contest for recognition. Our social media is reeling with hundreds if not thousands of followers ready to celebrate a despicable consumerism the black

middle class calls success. I drive the latest BMW. I eat from the high-end restaurant downtown Sandton. I only wear Gucci. My bag is Louis Vuitton. My shoes are Salvatore Ferragamo. But, how can we get past the hangover of our own failure to see who we are. Is there a way ahead that makes sense in the long term? Is there a path we can follow and trust?

Africa Rising There is no doubt in anyone’s mind that in terms of social growth, global commerce, and industrial development, Africa is the next frontier. From Cape to Cairo, from Dakar to Mogadishu, and right through the rainforest jungles of the Congo and central Africa, the battle for creation of wealth to feed and sustain millions of Africans of all shades of colour, tribe, language and creed rages on. It is a great war past which the African himself must find a solution.

It is not a war that must be fought with daggers and swords or with guns and bombs, neither should it be fought with piercing words and insults as heard everyday among opposing political leaders; it is a war that must be fought with much grace, much wisdom, and much understanding.

It is difficult to understand why Africa is so far behind any other continent in almost every area of human

Gauteng Gateway // 77

PERSONAL DEVELOPMENT

development. Many theories have gone out there blaming slave trade, colonisation, imperialism, the media, the world economic order and many other negative legacies instituted. But what is often not discussed is the role of the African himself in fostering the kind of development that brings real wealth. Perhaps the African himself has not discovered who he is.

What About the African There is almost always something or someone to blame for the suffering of men and women, boys and girls in Africa. It’s the climate, the notorious outbreaks of murderous diseases, the theft of minerals, the corrupt politician,

Real growth and sustainable wealth must be born in the mind, in the soul of a human being as are all great virtues.

78 // Gauteng Gateway

the floods, the HIV/AIDS pandemic, and everything else. We hardly ever look at the inner man, the African himself as the true cause and ultimate solution for all of his problems. Until we truly understand who we are, we are doomed to live in mediocrity walking around with begging bowls in the hope that manner will fall from heaven or perhaps a prophet will come and bless us, or the politician we elected will remember us, or maybe, just maybe the powers that be such as the USA, Great Britain and China will have mercy on us and give us more money. We ignore the Africa himself in finding the solution.

The lack of identity and a missing belief in self worth leads to an inherent nature to destroy rather than to build. As a result, poverty, crime and disease run rampant in our societies. Poverty exists at all levels in Africa; it is just an issue of what level and who is perpetuating it. Even the connected guy down the

road in a three-storey mansion driving a Bentley is poor. No matter how much money you throw at a man, you cannot make him wealthy. Real growth and sustainable wealth must be born in the mind, in the soul of a human being as are all great virtues.

The Way Forward I am a firm believer that in every man is something that no one can destroy.

It is what defines who we are and what we exist for? This truth, this revelation, this quality is hidden in us and those that live to discover that thing go on to become great because wherever they go in life, they understand their identity, their uniqueness, and subsequently their true value. The ability to exploit the hidden identity in us makes us special people. We breathe hope. We make changes.

We contribute. We build. We define new horizons to be reached. Human civilisation is built on this fundamental belief, that somehow, we have a

PERSONAL DEVELOPMENT greater identity and purpose than what our circumstances dictate and that we can be much more than what we are right now.

18th century Europe called it enlightenment, America calls it liberty, Socialism call is it revolution, Africa calls it freedom – we all seek and search for the same thing. The life where our choices are empowered to truly reflect our present consciousness and aspiration.

Africa must resolve and refuse to pull back but march forward; march forward in developing an education system that answers the unique problems of Africa; march forward in reaching the unreached, build roads, dams, and power stations; march forward in creating unique financial solutions that can catapult African entrepreneurs into economic powerhouses; march forward in unity and a common cause for all that is Africa.

Together, we can win. v

Discover MELROSE I

t is urban dynamism, day and night.

The street-based layout favours ambling pedestrians, combining modernism and green design innovation in extraordinary ways, all contributing to the 24/7 buzz.

Set amidst 400 trees and greenery, Melrose Arch encompasses cosmopolitan apartments, two luxury hotels, an events venue, over 20 restaurants and coffee shops, eclectic boutique retail complemented by major national chains, 9 individualized triple A grade office buildings and a luxury health club.

Bustling with boutique browsers and cafe culture, it offers an international high street fashion experience, alfresco style, leading to a shopping galleria boasting over 100 of the country’s top retailers to re-define the face and future of shopping.

South Africa’s only ‘smart city’, Melrose Arch is capable of full independent 80 // Gauteng Gateway

functionality given its own fibre optic network and onsite power backup.

Protected by a team of 90 private security personnel with 24-hour CCTV surveillance through 600 cameras, the precinct is also independently safe.

The ethos of innovation is reflected in the precinct design, the distinct retail tenant mix, the award winning Green Star-rated building across the precinct and ongoing new initiatives to enhance the ‘Melrose Arch experience’, the latest being Ka-ching, a mobile-enabled parking payment app.

Invest in Melrose Melrose Arch is located in the heart of Johannesburg’s affluent suburbs,

Discover why Melrose Arch has been voted ‘The place to see and be seen’ for 8 consecutive years by the Leisure Options’ Readers’ Choice Awards. To experience it is to delight in it. adjacent to the M1 freeway and other major arterial routes, within close proximity to OR Tambo International Airport, the Sandton CBD, the Rosebank CBD, the Gautrain as well as the Johannesburg CBD. The Melrose

PROPERTY The latest fibre optic technology provides seamless access to the best possible digital building, data and telephony services.

Be a part of South Africa’s most exclusive mixed-used precinct Privately owned, maintained and operated. Pristine streets. Manicured landscapes. Iconic architecture.

Fantastic public outdoor space.

Melrose Arch is South Africa’s most exclusive mixed-use precinct. Melrose provides a prime opportunity to live, work and play in an exceptionally safe and secure environment.

Live a cosmopolitan connected life Link effortlessly to the neighbourhood, the city and the world. A short walk within Melrose Arch will connect you with all of your daily needs - offices, restaurants, shopping, hotels, banking, medical services, health clubs, postal services, entertainment and so much more. The latest fibre optic technology provides seamless access to the best possible

Arch Precinct is a strategically central point in Johannesburg, making it the perfect place to invest.

Vision for Melrose Arch To celebrate South Africa in an appealing melting pot of cultures, to be a ‘smart’city for the smart sophisticate. Melrose Arch’s growth is carefully planned and managed to ensure it: • Retains and preserves its special character as a legacy for future generations • Maintains the right mix of elements • Integrates gracefully into its environment as the Melrose Arch community evolves • Aligns with the growing trend of new urbanism digital building, data and telephony services.

Live, invest, capitalise Melrose Arch sets the goldstandard for mixed-use developments! Residential product at Melrose Arch is in high demand - a winning recipe for exceptional rental performance and capital growth. Invest now and be part of an incredible growth story. v Located @ 1 Melrose Square, Melrose Arch, Johannesburg. v Gauteng Gateway // 81

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