Elevation Business Magazine

This launch edition has exhilarating, inspiring, and elevating reads which include a cover story on Mohammed Dewji, super features and features on gas exploration in Mozambique, Bangladesh’s response to COVID-19, governance (conflicts.) and a column on conscious leadership. We present stories and articles on politics (truth commissions), education (blended learning), health (mental health, cannabis industry), entrepreneurship (the entrepreneurs are not yet born), lifestyle (greatest creation), media & marketing (brandmoji), business markets (the oxygen story). There are stories and articles on Africa (African innovations), Legal (Litigation expenses), motoring (electrical cars) CEO/Publisher Michael O’Connor Managing Director Davlynne Lidbetter Chief Operating Officer Jacques Pierre NIemandt Executive Editor-in-Chief Ramabaka Abel Tshimole Sales DIrector Kevin Lazarus Distribution: This publication is a bimontly Magazine (January, March, May, July, September, November and a Special Issue: December) It is only available in a digital format. No Print.

CONTENTS AFRICA’S SWEETEST INNOVATION 10 Using honey as a catalyst for social and economic impact THE URGENT NEED FOR CONSCIOUS LEADERSHIP 18 The dearth of visionary, high calibre leaders who strive to create a meaningful and conscious business environment MOHAMMED DEWJI 28 He has taken the entrepreneurial spirit and flavour from his father THE ENTREPENEURAL ONES ARE NOT BORN YET 34 The debut novel by Ghanaian writer Ayi Kwei Armah that expressed the frustration MOZAMBIQUE’S NATURAL GAS TREASURE TROVE 44 In 2010, one of the World’s most significant natural gas reserves was discovered off Mozambique’s coast. CONFLICT OF INTEREST 54 Without a doubt, conflict of interest ranks among the most common ethics risks MENTAL HEALTH IN THE WORKPLACE 62 The Covid-19 pandemic has been a driving force for social isolation BANGLADESH - IMPACT OF CORONAVIRUS 70 The global Covid-19 pandemic has wrecked havoc with economies LITIGATION EXPENSES 76 Due to the escalating costs of running a business BRANDMOJI 94 How Brandmoji is taking emoticons and branding to the next level VW IS GETTING ON THE “BUZZ-WAGON” 100 Will VW’s entry into this segment be the kickstart that it needs?

Chief Financial Officer Graham Van Blerk Administrative Director Tamelyne Van Tonder Executive Creative Director Gianluigi Morrico Creative Director (Design) Howard Muller Creative Director (Web/Online) San-Marie Scheffler Marketing Director Qaqamba Jikijela VP Legal Jean-Ray Pearton Co-Editor-In-Chief (SA & Africa) Thandi Xaba Editor-In-Chief (International) Apratim Chatterjee

CONTENTS CANNAFRICA – NORMALIZING AND ELEVATING THE USE OF CANNABIS 112 The use of cannabis for various purposes has been happening for centuries TECHNOLOGY IN EDUCATION 118 The new normal has provided more opportunites than ever before. BREATHING NEW LIFE INTO UNPRECEDENTED TIMES 126 On of the core air gasses - Oxygen also used as a supplementation. PRIVACY, SECRECY AND THE PoPI ACT 134 The recent data breach at Microsoft...

VP Legal Jean-Ray Pearton CONTRIBUTERS LIST Dr Claudelle von Eck Noah Debeila George Mutendadzamera Helen Bond Dr Alvin Chikamba Brenda Kali Kevin Lazarus JOURNALISTS Micheal Gillbee Tristan Kapp Jonathan Yarwood Carien von Backstrom DS Sourav Bonolo Mahlatsi Aiden Matthews

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MOHAMMED DEWJI

• He was born in 1975 • He was the second born of six children • He graduated in 1998 with a bachelor’s degree in international business and finance • He joined his family business, METL Group after graduation • He is married and blessed with 3 children • He is a strong family and religious person • He appreciates the role that his father, mother and grandmother played in his being humble, and ground • He loves impacting people’s lives through his investments

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EXECUTIVE EDITOR-IN-CHIEF’S NOTE

ew opportunities unfolding 2020 is behind us. We’ve all had to navigate a fair number of challenges and upheavals since the rise of the Covid-19 pandemic, and fast track the adoption of the 4th industrial revolution. This led to questions coming to mind as to how we need to respond to these developments and still remain relevant and vigilant in our general life and especially to survive as a government, civil society and or business community. In the midst of all this uncertainty, we have built a team of pragmatic and proactive minds that identified the need for business stories that are positive and uplifting. The end result is Elevation Business Magazine. We aim to empower, inspire and elevate the thinking of leaders in business, government, academia and civil society. Expect a variety of positive stories and features on topical issues and subjects that focus on the success stories in SA, the rest of Africa and internationally. We aim to illustrate the potential for collaboration, sharing and interdependence across the globe. “Motho ke motho ka batho” is a Sepedi language saying, loosely translated as

“I am because We are.” Peter Remes, once said: “I like anything that is thought provoking and elevates one’s consciousness to the highest and out of its safety net, making one breathe aspiration.” We invite you to join us as we steer the ship to a new level of thinking, where entrepreneurship, the human factor and the 4th industrial revolution all go hand-in-hand. We will be blending these themes during a time where there is a need for strategic leadership, sharing of knowledge and enabling our industries to embrace technology for continual improvement. All of the above will be driving the content of Elevation Business Magazine, as we get to launch the first edition to bring news stories to instill a spirit of winning and conquering all the dynamics and changes taking place. “We Shall Prosper” as the humankind, notwithstanding the current environment as long as we recognize and celebrate the brilliance and tenacity within our reach. Watch this space!!

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PUBLISHER’S NOTE

y vision and our mission is to be the best digital publisher. As I write this, we take pride in celebrating the start of our journey with you as we welcome two publications, Shoot Photography Magazine and Elevation Business Magazine. Having a passion for the arts and photography, I dedicated my energy into our publication called Shoot. The success was amazing and after just 5 publications, the need to answer to the business sector came knocking. Creating another business magazine simply would not do it for me. I wanted a positive messaging business publication that informed and motioned for effective changes in the market: a publication that elevates and inspires business-minded people around the world. This marriage of elevation and motion gave rise to Elevation Business Magazine. These platforms also serve to encourage and engage of our readers to give them ideas to develop their information in business and build their dreams like I did. Let’s face it, Covid -19 has almost crippled the world economy and the only way out is to start afresh. Big business is not the solution and has proved to be unsustainable for the working class. A new generation of entrepreneurs has risen from these ashes and they need our support to make it. Let us, as a community of the global market that is healing, and in the true spirit of ubuntu, turn our sorrows into hope and a brighter future. I would also like to acknowledge and thank my leadership team whose dedication into my vision and mission with these publications have been remarkable. Stay safe world.

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A FRICA

AFRICA’S SWEETEST INNOVATION:

One Million Beehives for global Food Security Using honey as a catalyst for social and economic impact by Noah Debeila.

hen we think of innovation, our first thoughts are companies such as Tesla, Microsoft, Apple and Netflix. Elevation Business Magazine in association with the SMME Chamber of Commerce, through this series of articles, seeks to expose you, the reader, to niche innovations and entrepreneurs destined to change Africa and the world. – Ed. First, let us agree on what it means to innovate. Lexico, powered by Oxford, defines innovation as to “make changes in something established, especially by introducing new methods, ideas, or products”. Insights of the above definition of innovating would be spot-on to look into the old-age industry of beekeeping. The history of domestic honey gathering and beekeeping dates back many years. However, an exact date has not been established, with historians having various opinions of dates. It is clear that as early as 2500 BCE, domesticated beekeeping was a common practice throughout Egypt. Lesego Serolong (33) is the founder and CEO of Bokamoso Foods, a food processing and supply company redefining innovation by producing honey in an ecologically friendly and sustainable manner and creating sustainable

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Photo by Eric Ward

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A FRICA

Photo by Massimo Rinaldi

income and jobs in rural communities. Lesego is committed to addressing the collapse of the honey bee population in Africa by implementing on the ground solutions to restore and protect honey bee populations. Our planet’s food security is mainly dependent on an abundance of natural pollinators, including honey bees, birds, and other insects. Still, honey bee colonies worldwide have been declining at an alarming rate. She seeks to address dwindling honey bee populations’ issues by allowing individuals, cooperatives, and smallscale farmers to buy beehives to replenish honey bee populations and train these small scale rural farmers to

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A F RIC A

Lesego Serolong

become beekeepers. These participants will promote growth in honey bee populations and provide a mechanism for sustaining healthy honey bee colonies. This is an important step in restoring vital honey bee populations, and ensuring sustainable crop yields, a critical need for global food security. Before launching Bokamoso Foods, Lesego completed a Master of Science (MSc) degree in Social Policy and Development at The London School of Economics (LSE) and a BA in International Studies at the City College of New York. Lesego is also the founder and chairwoman of Raise the Children, a registered non-profit company. Raise the Children identifies self-motivated orphans from impoverished and rural communities and mobilises resources for these children to gain access to high school scholarships that unleash their potential for employment and service leadership. Having lost both parents by the age of 14, Lesego always knew the latent potential lying in the hearts and minds of orphans in rural villages, hence her helping hand in uncovering these “diamonds in the dust”. Mission-aligned people like Lesego’s late mentor, Mama Ruth Mompati, would travel with her to deep rural areas to help identify orphans for the Raise the Children scholarships. These excursions taught Lesego much about the sacrifice and servant leadership required for transformation. Investing in the future After graduating from the London School of Economics, Lesego returned to South Africa to create job opportunities for the youth in rural and remote areas where employment opportunities are scarce, focusing on gaps and opportunities in the agri-value chain. Lesego established Bokamoso Foods in 2017 after getting Raise the Children off the ground.

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A FRICA

Noah Debeila is the President and CEO of the SMME Chamber of Commerce, an independent, non-political, subscriptionbased association. Her organisation is dedicated to creating an eco-system that provides access to markets, financial inclusion, and socio-economic opportunities to the African, Small, Micro, Medium Enterprises.

Bokamoso Foods is a proud, pioneering brand among the few blackowned tea and coffee manufacturing and packaging companies in South Africa, with capabilities in grocery and other dry goods supply. Bokamoso offers a comprehensive range of tea and coffee products manufactured and packaged in-house, with customised solutions to help clients save money and improve the quality of their products. The company supplies mainly to institutional clients such as restaurants, hotels, canteens, mines, prisons and corporations. Bokamoso is a 100% black female-owned business with a current Level 1 BEE rating. Over the last two years, Bokamoso expanded into the honey value chain, sourcing honey, propolis and wax from proudly South African farmers, including previously disadvantaged farmers in the North West and moving this product to market. Bokamoso aims to be a leading, world-class manufacturer and service provider. Bokamoso’s factory is based in the rural village of Taung, North West. “Being in the heart of a rural village, we continue to witness the social and economic impact we are catalysing in the local community where all our employees walk to work. As a SME, it hasn’t been an easy journey, and as one of the creditors of SAA we’ve pressed on while trying to preserve jobs. Our goal is to scale our factory operations and establish packaging facilities in rural areas across South Africa closer to mining towns,” said Lesego. 14

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Photo by Nick Karvounis

Next steps What is next for Bokamoso Foods is entering the international. How should they do that? The first step is to contact the Export Promotion at the Trade Invest South Africa (TISA), a DTIC division, Department of Trade, Industry and Competition. The DTIC will assist with export readiness training and international trade shows. The African Growth Opportunity Act (AGOA) was enacted on May 18, 2000, by US President Bill Clinton and then extended in 2004 by President Bush. In 2008 it was developed further by President Obama until 2025. African entrepreneurs should focus on accessing the USA market through AGOA before it expires in 2024 because there is no guarantee the Biden administration will renew the legislation.

Basic information about AGOA is that it allows 6 500 products into the world’s bests market, USA duty-free. AGOA is a General System of Preference - duty-free treatment to over 119 developing countries with a Rule of Origin that 35% of the product’s value must originate from an eligible AGOA country. Secondly, the African Continental Free Trade Area (AfCFTA) allows companies such as Bokamoso to have beehives all over the African continent producing various types of honey that will position the company as a premium honey maker in the world. In closing, look at the industry you are in and ask what changes can you make in something already established. You might just be able to introduce new methods, ideas, or products so you can become a leading innovator in your industry. n

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Photo by Timon Studler

COLUMNIST

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COLUMNIST

The urgent need for conscious leadership The dearth of visionary, high calibre leaders who strive to create a meaningful and conscious business environment are in short supply. Author and thought leader Brenda Kali argues why it is critical to look inwards to change this narrative and make a positive impact.

ruth, although severe, is a real friend” is a centuries-old Spanish saying that is apt in the current staggering headlines and dismal faux pas of some of our erstwhile leaders. The struggle today is a hidden and confused one. The global crisis of COVID-19 has seen people unwanted and unfed and those rising in protest torn by the needs of their lives, survival, and death. These are the people who cry out for help to leaders, conscious or otherwise, to save them from the most violent and urgent aspects of an exploding world. The emotional reality that lies beneath the everyday cold statistics cry out for conscious leadership. This is not conducive to the complex maze of corporate activity, pressure, speed and the economic necessities of flowcharts, bottom Elevation Business Magazine

COLUMNIST

Unless our leaders embrace a new wave of consciousness, integrity, values and ethics, we are not going to emerge from this dark cloud that threatens our national psyche as we spiral into paralysing pessimism. line and delivery. An unguarded bellow is all it takes for us to witness the final convulsions of a failed leader. There is nothing easy about the journey of leaders in these times. In a country that is as complex and forgiving as South Africa, our historic panorama of a creative race of disparate, diverse people, accepting the responsibility of leadership is a heavy burden. It is easy for an organisation to lose sight of its meaning and purpose beyond profiteering against the backdrop of a culture of dishonest dealings, rampant corruption and global corporate scandals. The time is ripe for positive change Never have we been plunged into such uncertainty and pressure. There is a profound opportunity to change the course of business by changing the shape, character, and consciousness of an organisation and its leadership. The current global malaise, the far-reaching

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effects of corruption and greed, the impact of the recession and the reputational fallout of major companies have become a harsh reality. This raises serious questions and trust and credibility regarding financial behaviour, integrity, governance and ethics both in the political and economic space. Unless our leaders embrace a new wave of consciousness, integrity, values and ethics, we are not going to emerge from this dark cloud that threatens our national psyche as we spiral into paralysing pessimism. More now than ever before, we need to create courageous, conscious leaders who can influence and inspire human behaviour by placing humanity at its core. Those who take on the mantle must help shape realistic expectations of what a leader can do. We need those who are imbued with impeccable integrity to transform society and address equitable and sustainable development, poverty, historical

COLUMNIST

Photo by Warren Wong

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COLUMNIST

Photo by Sushil Nash

imbalances and inequality. We need a paradigm shift that impacts our thinking, behaviour, culture and evolution in our political, economic and social environment. We need a few good men and women to dedicate their lives to service even today and display great human values. Footsteps to follow in We need unparalleled leadership displayed by great leaders like Martin Luther King, Madiba, Gandhi and Frankl again. They were not perfect, but they had demonstrated unprecedented wisdom, clarity of thought, humility, truth, altruistic love, 22

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empathy and patience. What set them apart, despite their flaws, was that they were driven by passion and purpose and examined their nature and their relationship with the world. If the trailblazing leaders of the past were found wanting, their intuition of spirit to turn the hurdle of their flaws into a life lesson set into motion their journey to iconic and extraordinary leadership. This is the kind of leadership we need right now, not only at home but globally. Visionary leaders whose actions manifest greater good for all are not born remarkable or extraordinary, neither are they

perfect. All they have done is learnt the skills to manage their own existence, fully cognisant of their surroundings to influence and better the lives of those around them. How do we create this calibre of extraordinary leadership? How do we raise the bar to develop conscious, courageous leaders with a different quality of thinking and capacity to uplift and influence those whose lives they touch? Looking inwards In navigating the cause of conscious leadership, I sometimes cross paths with an executive who gets it. Someone who gets

COLUMNIST

Brenda Kali is one of the leading voices in advocating conscious, ethical leadership. She is the author of ‘Beyond Corporate Sludge’, insights to create balance and harmony in the workplace. Her latest book, ‘Veritas: The Search for Conscious Leadership and Truth in a Fractured World’ attempts to synergise the technology of ‘how to make a living’ with the psychology of ‘how to live’. Borne out of the author’s deep desire to comprehend consciousness, ethics, and leadership by looking at different perspectives, the book addresses the critical need to understand humanity’s multi-dimensional aspects, unlock the riddle of human behaviour and humanise the corporate and political environments globally.

the essence that consciousness is an inner journey into oneself – so that we can impact positive energy externally. We get caught up in cultural revitalisation, strategies and presentations on corporate transformation. However, corporate transformation is impossible without personal transformation, an internal process that starts as a whisper in one’s very own psyche and one’s relationship with oneself. The way one thinks, acts, feels, behaves and reacts in the workplace then cascades into an inner call of tolerance, sensitivity and the ability to challenge circumstances and cultural norms despite the obstacles one encounters. A conscious, ethical leader creates a culture of trust, care and compassion and is unafraid to display his humanity. In the absence of this consciousness within the complex maze of the corporate space, unpleasant chaos and insecurity permeates most organisations, and they become socially irresponsible and environmentally destructive. ‘Fruitless and wasteful’ expenditure has become the mantra of the Auditor General. We are at the crossroads. Operating in consciousness is a choice for leadership, and given the ethical and moral agitations of our age and the country, it is a critical time to choose. Conscious leadership is a rare spark that flashes in leaders’ behaviour Elevation Business Magazine

COLUMNIST

Conscious leadership requires constant work, compassion and courage to create disruption and bring about a different quality of being in the world of business.

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COLUMNIST

Photo by Tim Marshall

and actions that change the course of the organisations they are entrusted with. It is a conscious leader who, refusing to compromise on his morals and principles, instils an enduring culture of help and service to others in harmony and cooperation. This gives breadth and depth to the company’s idea of itself more than anything the bottom line can achieve. It is deeply fulfilling for people to be part of a conscious company lead by valuebased leadership. Customers and stakeholders feel valued and served, and employees feel safe and have a sense of belonging beyond the paycheque. To gain a deeper understanding of consciousness and the more refined perceptions that distinguish great men like Gandhi or Mandela from others, one had to place humanity at the core to bring about harmony, create stability, prosperity and cooperation with others. That’s what a purposeful, conscious life is about. Admitting your shortcomings Regardless of the circumstances of one’s birth and environment – just being human means that we are all flawed, and no one is left untouched by life, even highly conscious leaders, like Mahatma Gandhi and Martin Luther King. However, when leaders are found wanting and in crisis, they have an opportunity to turn the predicament they find themselves in – into a life lesson of authentic leadership for all. They can do this by publicly holding themselves accountable for their actions and poor judgement, openly admitting their flaws and accepting their human weakness, showing remorse and resolve to turn things around tangibly. We did not see any of this with the leaders of Bain, Steinhoff, and several others who had not displayed an iota

of conscious leadership. Conscious leadership requires constant work, compassion and courage to create disruption and bring about a different quality of being in the world of business. It is a deeply rooted awareness of one’s actions, of doing the right thing and despite having no control of whether the markets go up or down. It is about being mindful of the fact that we are not in control of life’s machinations. We recognise the power to control our response to whatever chaos or crisis that comes our way. Finally, the hour has come for us to realise that we will only be able to turn our backs from the terrifying

consequences that lie ahead if the politician and the economist, the statesman and the soldier, the minister and the citizen has the humility to take responsibility. Our leaders need to have the courage to admit that political, social and economic reform cannot happen without corrective and conscious behaviour. Currently, had it not been for the providence of a few good conscious, ethical men and women, who are an integral part of the Conscious Companies ecosystem, to save the day, the hot mess we are in would have been intolerable. n

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COVER STORY

The youngest, impact driven African billionaire

MOHAMMED DEWJI Mohammed was born of six children, in Tanzania on the 8th May 1975. He has taken the entrepreneurial spirit and flavour from his father who turned his family shop into a thriving import-export business by the time Mohammed started school.

fter attending high school in Florida and New Jersey, USA he studied at Georgetown University in Washington DC wherein he graduated with a bachelor’s degree in international business and finance and a minor in theology in 1998, Mohammed started his working career by joining his father’s business, Mohammed Enterprise Tanzania Limited (METL) wherein he quickly moved within the ranks becoming the Chief Financial Officer in two years. He proved himself as a turnaround strategist by buying

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COVER STORY

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loss making entities offloaded by the Tanzanian government, ensuring that once acquired they start making lucrative profits for METL. He achieved this by buying these companies cheaply, trimming the number of employees and finding new markets to ensure revenue generation capacity. This later turned to make METL Group the biggest conglomerate in the Tanzanian economy. These acquisitions led to making METL Group, a diversified entity having acquired and operating units in the manufacturing, agriculture, trading, finance, mobile telephony, textile, insurance, real estate, transport and logistics, including food and beverages sectors. The company operates in at least 10 countries with a growth trajectory and business model wherein creating more employment opportunities is the focal point. Mohammed recently made a statement, in January 2021 saying that he would want to increase employees METL Group employs in Tanzania from 32,000 to 100,000 by the end of 2021 Mohammed was kidnapped in October 2018 which was quite a stressful time in his life and made him appreciate life more and wanting to invest more into projects that have more impact, creating jobs and changing the lives of those he employs and or get to donate to. He became deeply religious as well. He is now regarded amongst the richest billionaires in Africa, ranked number 13 in the latest reports, richest billionaire in Tanzania and the youngest billionaire in Africa. His net worth is reported to be $1,6 billion. He has dedicated to allocate and giveaway 50% of his wealth to programs and projects for upliftment. Mohammed is married to Saira, his high school sweetheart with whom he has three children. The couple resides in Dar es Salaam, Tanzania. n 30

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Mohammed recently made a statement, in January 2021 saying that he would want to increase employees METL Group employs in Tanzania from 32,000 to 100,000 by the end of 2021

Photo by Ethan Bodnar

COVER STORY

On the 26th March 2021 Elevation Business Magazine (EBM) caught up with Mohammed Dewji (MD) for a Question & Answer conversation to intimately understand his persona and what it is that drives him. Humility displayed in the realms of leadership A conversation that illustrated how grounded, humbling with a touch of strategic vision and impact focused Mohammed Dewji is, took place to get to understand what makes him tick, Elevation Business Magazine (EBM) - We’re over a year into the global pandemic. How do you feel Africa, as a continent, is faring and why? Mohammed Dewji (MD) - Let’s first and foremost focus on Tanzania, the country decided not to go into lockdown like the rest of the world. This decision has spurred Tanzania’s growth by 16%, inflation sitting around 3% and GDP forecast around 5,5%, thus creating a stable economy which makes Tanzania one of Africa’s leading economies during this pandemic. However, Tanzania tourism which averages an injection of about 1,5 billion dollars has stifled due to travel bans which created a ripple effect in other sectors of the economy such as retail, hospitality, real estate, etc. Tanzania is also a fuel importer and gold producer and these commodities help drive and balance the economy shouldering the impact from other sectors. As for Africa yes, we have been hurt with large economies like Egypt, Nigeria and South Africa going into long periods of lockdown. Knowing that Africa has low purchasing power with low per capita income, which means people have to work to survive. Couple that with Africa’s current challenges like collections from taxes, loans repayment restructuring and change of governments, the effect is similar to that of the west. It is much harder in Africa because people do not have as much savings to support their livelihood creating strain on governments. EBM sub question: Why do you think Tanzania was not seriously affected by the pandemic? MD: Well, our government stopped reporting on the pandemic’s statistics and thus people continued to live their lives normally including the economy operating with no lockdown. Unfortunately, people died, especially those with co-mobilities and cos of no reporting the impact was not seriously felt and or reported upon. The focus on keeping the economy functional ensured that economically the country and its people were not severely affected. EBM: How has the pandemic affected your work, and how did you adapt to this new environment? MD: The METL Group was not really negatively impacted as we diversified and adapted into cosmetics and textile, producing sanitizers and masks amongst other needed products. As a business we keep to international practices which meant staff rotation, remote working and now through technology adapted the new business practices of working on platforms like zoom, etc.

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EBM - You’re a fervent believer in the importance of impact investing. Which areas are you particularly passionate about making an impact? MD – First I would want to pass my condolences to the family of our late Tanzanian president, HE President Dr John Pombe Magufuli and the citizens of our country. I believe that we have a new president, HE President Samia Suluhu Hassan, the first woman to lead Tanzania who will be able to make an impact in Tanzania. Investing in projects that result in more jobs is what appeals to me EBM: Tanzania’s The Citizen newspaper reported beginning of this year, that you plan to increase the number of people directly and indirectly employed by your companies from 32,000 to

100,000 by end of 2021. Are you on track? How are you doing this? MD: I believe in impact investing, which is done reviewing businesses that creates jobs. Being in the textile sector that is dependent on local resource, we reap the benefits of the entire production chain, very different to being reliant on the foreign currency strain that impacts on margins gained. From raw to finish product we control the value add required. By investing into other products like denim and into other African states like Mozambique, we definitely creating sustainable jobs. Further investment into Sicil crop production, will result in the production of fibers that have numerous usages across many sectors. It is a semi drought resistant and bio degradable product, with this investment we aim to be by 2023 the largest producer and with this many jobs will be created. Another agricultural project I am hoping to secure land with government, is the production of sugar cane and it’s related by products. Like the textile, tea and other sectors if it’s a local, the creation of jobs will happen automatically. METL is the largest employer, second only to the United Republic of Tanzania. EBM: Climate Change and its impact MD: We are concerned, compared to the world, Africa is small yet we most impacted- it is unfair. I urge the G7 and other leaders to be tougher on their emissions, they need to give back to set off the damage caused. Africa must be given carbon credits for not causing as much pollution, which will help and boost Africa’s growth. EBM: The Fourth Industrial Revolution (4IR) is expected to be more prevalent in countries with expensive labour markets. Our continent (or the majority of it) is not in the same boat. How do you foresee 4IR’s impact on our continent, and what role does Africa have to play in this revolution? MD: I believe industrialization is important for every country, it needs four major components 1. Raw material / natural resources 2. Labour that is competitive, adding value for money change 3. Technology which can always be acquired and 4. Market for these products. I believe if governments in Africa can provide the necessary infrastructure such as adequate power at competitive rates, etc., Africa will benefit and enjoy this revolution. EBM: How do you feel about foreign investment - especially from the East - on our continent? What are the opportunities and pitfalls? MD: The relationship with Africa and the east has been long that spans well over 40 years. IMF and World Bank’s procedures are cumbersome, therefore working with the east makes it viable as access is easier. China has made considerable efforts with African governments by providing access to long term loans more attractive with far less red tape, and competitive rates. In turn Africa needs capital to move their resources, China and India is prepared to exchange these resources for access to capital – that’s business. As long as you have capable negotiations it would be a win win situation. However, they are more exposed now and I believe going forward it might be difficult. This is an opportunity for the west to become more accessible and open trade. Africa needs to maintain a good strategy and strong negotiations with east or west to have a win win outcome. East will continue to establish long term relationships with Africa and the results are strong and here to stay.

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COVER STORY

EBM: What are your views on the start of trading under the African Continental Free Trade Agreement – would you label it as a legitimate game-changer for business on the continent? Why? MD: In general, this is fantastic, the benefits of: no tariffs between countries, free movement of people, African passport all great with the biggest trade blocks and massive leverage against EU, west, etc. But before we proceed must be able to externalize the Common Tarff Harmonization, by looking at the Rules of Origin. Whilst it is not difficult to understand and implement, it must be a just process as the risk will result in viable industries being destroyed with low import tariffs ending in job losses and strain on the economy in the long term. EBM: Do you think enough support and an enabling environment is created to encourage innovation and creativity in entrepreneurship to drive change and socioeconomic transformation on our continent? Please elaborate if necessary? MD: Yes, there is a push for innovations and disruptions e.g., Mobile money, and the creations of tech hubs in certain countries. African governments must set aside budgets for research, doesn’t matter the field but the research process must stay driven. EBM: What’s your contribution to enable and inspire new entrepreneurs and next layer of millionaires for broadening the economic cake and closing the inequality gap? MD: I have joined the Giving Pledge, which is a pledge of giving half my wealth to philanthropy. Areas I focus on is in education both formal and informal. We encourage the creation of more entrepreneurs through funding of their projects and building capacity. EBM: Tanzania is entering a new chapter in leadership with the passing of President, HE. Dr. John Magufuli and the recent inauguration of his successor, President HE. Samia Suluhu Hassan. This didn’t only place Tanzania in the spotlight due to the fact that Samia now is the only female president in Africa, but many analysts believe her leadership will put the country back on the diplomatic map. What is your take on this? MD: I agree, I have full confidence in our president, HE President Samia Suluhu Hassan as she is an experienced politician, strong leader and visionary. She also understands the country well and its problems. As a visionary she has a clear plan and it will change the landscape of Tanzania. She will attract lots of Foreign Direct Investment. But will need to work very hard to move the economy forward at a rate of 10%, by providing water, education and health services and focus on elevating poverty. I believe, she will create a very friendly investment surrounding for both local and international investors. The country is in good hands and I feel very positive.

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EBM: What would you describe as your biggest failure/regret in your career? If you did manage to rectify/recover from it, how did you do it? MD: When I reflect, I believe I should have invested more efforts in telecoms and the banking sector. I believe it’s not late, it’s not a failure – I did what I was more comfortable doing, and had opportunities that I could take advantage of. I wanted to do something that touched the lives of people on a day-to-day basis. Being involved in manufacturing and how do I tap into the 6070% of the incomes that are not taken advantage of. My biggest achievement has been to dedicate more time to family, my children and getting more involved in philanthropy, giving back, as a result of the ordeal of being kidnapped.

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EBM: Who is your role-model in the world of business, and why? MD: My role model is my father, self-made through hard work and intelligence. Trained me in the business. He started from a zero base and elevated the company, welcoming me to take over the business. He started with my grandmother and grew up under him, exposing me to how business operates taking me to China and other locations. EBM: What is your proudest achievement in your career? MD: Not to do with business, but has to do with my faith after being kidnapped and blindfolded for 9 days and God saved me. I didn’t know if I was going to live or not. Reality check is on life and not material gains. I look at life and no more dollars and cents and interested more in making more impact. When you go into the social media and you realise that even poor people were praying for this rich person then you start realising you have more to do to help and change people’s lives. EBM: What keeps you grounded? MD: Family, especially my mother taught me to respect and honour everyone whether poor or rich, educated and uneducated. The values of life have kept me grounded my entire life. Being a Muslim, it has taught me that this is all temporary, kept me humble, taught me humility, and want to continue to do good and touch lives. EBM: How do you start your day? MD: I used to start off by going to the gym. But since my kidnapping, I start with prayer, then read emails and reports. Get into the office by 6am and by 7:30 start my Board Meetings. I now go to the gym around lunch time, 1pm. I also hold informal meetings like with the auditors, marketing, etc. I am involved with Simba Football Club. I do train, running 70-80 kms over weekends especially. EBM’s follow-on question: How is your love for football, and your thoughts about Patrice Motsepe’s ascension to CAF Presidency? MD: I started sponsoring Simba football club after my graduation and when I started working. It was more a members’ club and thus one could not buy it. I left and joined politics. It was around 2015 when I did an interview, with Salama Jabi, an Oprah equivalent in Tanzania, which was played on Youtube, about my love for football and what I would want to achieve that more conversations took place. I was then allowed to buy the club and we have done very good, having played in the FA, winning the Tanzania Championship including beating Al Ahly football club. Simba has about 30-40 million fans and that is money. I believe that Patrice Motsepe is doing a great job and this is good for African football. EBM: How do you finish your day? MD: I am back at home by 7:30pm, have dinner and then study theology, helps me clear my head and by 11pm I am asleep. I used to sleep about 4-5 hours but now I sleep 6-7 hours to rest and rejuvenate. I read theology books in the evenings before I could sleep and stopped watching TV. I subscribed to news publications including reading tweets to keep up to date with news and events in the world. n

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The Entrepreneurial Ones Are Not Yet Born! The Beautyful Ones Are Not Yet Born’ is the debut novel by Ghanaian writer Ayi Kwei Armah that expressed the frustration, around economic emancipation, that many citizens of the newly independent states in Africa felt after attaining political independence. It was written in 1968. By Dr Alvin Chikamba

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ast forward more than a half-century later, and there is a sense that in most of Africa, the economic freedom and inclusive growth that was expected to come with political independence has mainly been elusive. The dream of prosperity seems to have been at least deferred and at most destroyed. However, ‘for countries to grow and benefit from globalisation, more citizens need to take entrepreneurial risk’. Can a renewed commitment to the practice of entrepreneurship and the spirit of innovation be the solution to the continent’s ills of poverty, inequality and unemployment?

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ENTREPRENEURSHIP

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We should realise that we live in a time of a ‘global entrepreneurial revolution where entrepreneurs are challenging existing assumptions and creating value in novel Creative Destruction Revisited One of the most poignant quotes from the book reads thus: “Others devoted to life will surely find that between the creation of life and the destruction of the destroyers, there is no difference but a necessary, indispensable connection, that nothing good can be created that does not of its very nature push forward the destruction of the destroyers.” I have previously written on Creative Destruction, the ‘process by which new ideas, businesses and industries emerge, leading to the downfall of traditional ideas, businesses and industries’. Creative destruction is ‘a revolutionary process at the heart of which is one or more innovations’. Joseph Schumpeter considered capitalism as an economic system in which competition is driven by the ‘perennial gale of creative destruction’: 36

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“Capitalism … is by nature a form or method of economic change and not only never is, but never can be stationary …The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumer goods, new methods of production or transportation, the new markets, the new forms of industrial organisation that capitalist enterprise creates … This industrial mutation … revolutionises the economic structure from within, incessantly destroying the old one, incessantly creating a new one. The process of creative destruction is the essential fact about capitalism … it is not price competition which counts but the competition from … the new technology … competition which strikes not at the margins of the profits … of existing firms but at their foundations and their very lives.” Notably, the ‘central figure on the capitalist stage is the entrepreneur’, who is the agent of this change process.

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The Beautyful Ones Are Not Yet Born

The Entrepreneurial Ones Are Not Yet Born The policy debate around renascent Africa is relatively lukewarm on entrepreneurship and innovation as essential drivers of economic growth, productivity enhancements, job creation and societal well-being. Yet, the ‘abilities to think and act entrepreneurially, to continually innovate, and to engage in an ongoing process of creative destruction have become the source of competitive advantage’ globally. Many of us have been brought up to see only the relative safety of corporate employment as the only way to a better life. There certainly is nothing wrong with having a nice comfortable job. The whole raison d’être for LinkedIn, for example, is to connect talented Elevation Business Magazine

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However, ‘for countries to grow and benefit from globalisation, more citizens need to take entrepreneurial risk’. Can a renewed commitment to the practice of entrepreneurship and the spirit of innovation be the solution to the continent’s ills of poverty, inequality and unemployment? people with job opportunities. But what happens when large corporates are busy downsizing or not recruiting, while the African population is predicted to double to 2 billion in the next few decades? Where will the jobs that are already short come from? We should realise that we live in a time of a ‘global entrepreneurial revolution where entrepreneurs are challenging existing assumptions and creating value in novel ways’. So we can only achieve ‘the destruction of the destroyers’ of the post-independence dream in Africa by creating an entrepreneurial class and supportive socioeconomic and political ecosystems that complement existing paradigms. Only then can the ‘revolutionary process’ begin to deliver the expected

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economic and social good to both the current billion people and the next billion. Till then, I guess the entrepreneurial ones are still to be born! n Dr Alvin Chikamba DBL (UNISA) CA (SA) is the founder and Chief Executive Officer of Entrepreneurial Confluence Strategists (Pty) Ltd, an entrepreneur focused business whose purpose is to grow organisations and create jobs through its innovative and proprietary entrepreneurial growth strategy and capital intraventions. He is passionate about his new saying that ‘Afrika Is The New Black’, offers Africa growth advisory solutions, and can be reached at dralvinchikamba@gmail. com and entrepreneurialconfluence@gmail. com or follow him on LinkedIn, his blog entrepreneurialconfluence.wordpress.com and Twitter @strategoi

ENTREPRENEURSHIP

Ayi Kwei Armah

References 1. Armah, AK. 1968. The Beautyful Ones Are Not Yet Born. Heinemann. 2. Demirbas, D & Demirbas, S. 2011. The Role of the State in Developing Countries: Public Choice versus Schumpeterian Approach. Business & Economics Research Journal. 3. Howie, PJ. 2011. The Evolution of Revolutions: How We Create, Shape and React to Change. Prometheus Books. New York. 4. Kuratko, DF. 2009. The Entrepreneurial Imperative of the 21st Century. Business Horizons. September. 5. Morris, MH, Kuratko, DH & Covin, JG. 2008. Corporate Entrepreneurship and Innovation: Entrepreneurial Development within Organisations. Thomson South Western. 6. Schramm, CJ. 2008. Toward an Entrepreneurial Society: Why Measurement Matters. Innovations. Winter. 7. Schumpeter, JA. 1942. Capitalism, Socialism and Democracy. New York Harper.

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Technology photo created by wirestock

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F EA TURE

Mozambique’s natural gas treasure trove In 2010, one of the World’s most significant natural gas reserves was discovered off Mozambique’s coast. It offers the promise to transform the national economy of one of the continent’s most impoverished nations - not to mention the potential it holds for South Africa. But rising terror might stand in the way.

ozambique was known for its enormous coal reserves and other minerals and natural resources, and it had been producing onshore gas since 2004 through Sasol. More exploratory drilling and then confirmation of findings led to one of the World’s biggest natural gas reserve discoveries. Since 2010, between 150 and 200

Tcf (trillion cubic feet) of natural gas has been found. This amounts to the equivalent of 26 to 36 billion barrels of oil, with more exploration and findings on the way and the 5th licensing round for drilling that will start in 2022. Parliament has passed the necessary legislation to underpin liquefied natural gas (LNG) investment and secure the financing required, therefore giving the country a more practical and pragmatic approach to this natural resource

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FE A TU R E

Sebastian Wagner

and with the view to expediting investment and, subsequently, production. It offers a 2% PPT/ Royalty with no other EPCC Domgas, Domestic Market Obligation or Regional Obligation. The five-year exploration period is extendable, and there is a 30-year development and production concession grant. All this means that by 2026, the LNG sector will likely see a 120-billion-dollar investment and with the likelihood of further growth. South Africa, with its suffering energy sector, could benefit greatly 46

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from Mozambique’s LNG sector. Pipelines are projected to go from Mozambique into South Africa directly to Richards Bay and into Secunda, Sasolburg, Middleburg, and Johannesburg. If this materializes, South Africa’s electricity production wouldn’t be so dependent on diesel-fire and coalfire. One of the advantages of LNG is that it is also the “greenest” of fossil fuels. It emits less carbon, will promote coal to gas switching and also aid in the growth of renewables energies.

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If this materializes, South Africa’s electricity production wouldn’t be so dependent on diesel-fire and coal-fire. Elevation Business Magazine

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Geographical advantage Mozambique is ideally situated to supply the Asian markets – China and India. Its LNG also prices competitive with LNG from the United States, which gives it yet another advantage. As of the 27th March 2021, spot price for LNG ranges between $2.10 -$3.16 per Gigajoule (GJ). Reading this, you’d be thinking that it’s all plain sailing, but sadly not. In late 2017, Islamic radical groups such as Isis and Al-Qaida took a strong foothold in the northern region of Mozambique, the province of Cabo Delgado, where incidentally, the US$25 billion investment to date is situated, and the majority of

President Filipe Jacinto Nyusi addressing the general debate of the UN General Assembly’s seventieth session in 2015. Picture: United Nations

Key dates in Mozambique’s history: 1505 Portugal colonizes Mozambique. 1891 Portugal hands over the administration of the region to the Mozambique Company, a private business. 1962-74 Independence struggle: Front for the Liberation of Mozambique (Frelimo) is formed. 1975 Independence: Frelimo rules under single-party system with leader Samora Machel as the president. 1976-92 Civil war. 1986 President Machel is killed in an air crash, Joaquim Chissano is installed as president. 1990 The Constitution is amended allowing for a multi-party system. 1992 A UN-brokered peace deal ends fighting between Frelimo and the rebel Mozambique National Resistance (Renamo). 1994 First multi-party elections, Joaquim Chissano is re-elected as president. 2004 President Joaquim Chissano steps down after 18 years in office, succeeded by Armando Guebuza. 2010 Discovery of offshore natural gas fields in the North of the country, in the province of Cabo Delgado. 2015 Mozambique declares itself free of landmines, a legacy of its civil war. 2017 An Islamist insurgency begins in the North, putting the development of the offshore gas fields in jeopardy.

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SU PER F EA TURE

MOZAMBIQUE AT A GLANCE • Capital: Maputo • Population 29.5 million • Area 812,379 sq km (313,661 sq miles) • Languages Portuguese (official), various indigenous languages including Makhuwa • Major religions Christianity, Islam and indigenous religions • Life expectancy 56 years (for males), 60 years (for females) • Currency Metical (1 ZAR = 4,85 MT) Mozambique gained independence from the Republic of Portugal in 1975. However, it is still suffering the effects of the 16-year civil war, which ended in 1992. The tensions remain high between the Frelimo party in power since 1975 – and the major opposition party, RENAMO. Corruption has become a significant concern in state affairs and hampers economic growth. In 2011, the discovery of gas fields off the coast of the country’s northern province, Cabo Delgado, offers the promise to transform the national economy of one of the continent’s most impoverished nations. But despite recent economic growth, more than half of Mozambique’s 24 million people continue to live below the poverty line. The President and presidency Filipe Nyusi from the Frelimo party began his first term as President in January 2015 and was inaugurated for a final five-year term in 2020. He succeeded former president Armando Guebuza as party leader, representing a change in guard in Frelimo, which has dominated politics in Mozambique. During his election campaign, Filipe Nyusi pledged to transform Mozambique, one of Africa’s most impoverished nations. Nyusi presides over a country on the cusp of tapping

the natural gas fields are. This has led to a very dire internal situation with more than 2000 deaths and more than 600 000 internal displaced. More than half a million people have fled Mocimboa da Praia, Mueda, Macomia, the ruby and precious gems rich city of Montepuez and other towns and villages. They also relocated towards the provincial capital Pemba. Refugee camps have been set up, new schools and campaign clinics to attend to the sick, the injured and to try and stem the spread of the Covid-19 pandemic. It has become an uneasy situation with military presence from the Mozambican Defence

discovered offshore gas fields that are now being worked on and drilled to start producing by the latest, 2023. This natural resource bonanza – alongside coal and other minerals – could transform the country’s economy. However, since 2017, an Islamist insurgency claimed to be the work of both Al-Qaida and the Islamic State in the gas-rich Cabo Delgado province has raised questions about the state’s ability to guarantee security. With over 2000 deaths and more than 560 thousand displaced people from the region, from various villages and towns, forcing them to the provincial capital Pemba. Filipe Nyusi has requested help in training from Portugal in counter-insurgency and arms and military equipment from nations such as the USA, France and the UK. Media Television is a key medium. TVM - Televisão de Moçambique (Mozambican Television) is a state-run entity, but a private network, STV (news and general content) offers alternative content and exposes much corruption and state inefficiencies. State-run radio operates alongside some private FM stations. Print media also has an influence. But journalists who upset the Government authorities have faced intimidation, threats, persecution and death.

Force on the ground, but who are ultimately unprepared for guerrilla warfare and not trained in counter-insurgency. Help is received from Portugal, of which Mozambique is a former colony and investor countries such as France with Total and the USA with ExxonMobile, with their French Foreign Legion and American marines, to help quell the insurgency, train the Mozambican army and secure the country’s sovereignty. Total has temporarily pulled out some of its staff, yet this has not halted proceedings in the gas fields. Work continues in earnest. n Elevation Business Magazine

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A SUCCESS STORY IN THE MAKING To get a better sense of what is happening ofon the ground and the general feeling of the region and therefore of the LNG industry, Elevation Business Magazine sat down with NJ Ayuk, the executive chairman of the African Energy Chamber and . He also is the author of Amazon’sAmazon’s best-selling book in the industry, ““Billions at Play: The Future of African Energy and Doing Deals”, NJ Ayuk”. He explained the feelings and wishes of Mozambican president President Filipe Nyusi after a meeting with him and the situation on the ground after a visit to Cabo Delgado.

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Elevation Business Magazine (EBM): You’re the executive chairman of the African Energy Chamber. You travelled to Mozambique for the Africa Oil & Power conference, where the President was honoured with Africa Oil & Power’s ‘Person of the Year’ award for 2020. How was the event, and where do you see the path of natural gas in the country? NJ Ayuk: I have to firstly say, we as the African Energy Chamber, believe the head of State deserved the award, he has accomplished a lot, in spite of that there are a lot of challenges that Mozambique has to face. They have one of the largest gas reserves in the World. It’s a country that has seen the majority of its wealth not benefit its people. Energy poverty is real. Many people in the country do not really have the right kind of energy, the right kind of support. So, when you look at that, it’s a perfect opportunity to support Mozambique in a place where you say: natural gas can actually be used to improve the lives of people. To make sure that everyday people, whom nobody ever gave a shot, we can use that to really transform that, and we should not fall in the same mess that a lot of other developing countries have fallen in. We also recognise the Governments challenge in combating Isis and Al-Qaida, terrorism in the North of the country. Some of the grievances come from marginalisation, which are valid, and you need to be honest with those grievances. Also, other grievances come from people who have decided to join forces with Isis. As we’ve seen in recent days, it is going to need a wider international effort in order to have Mozambique free of all these problems. Bring in the right kind of support, the right training, the right machinery, the right weapons and equipment to really ensure that curbing terror does happen. If you look at Mozambique and where it is situated, it is the gateway to five landlocked countries: Zambia, Malawi, Zimbabwe, Tanzania and, to an extent, South Africa. You could see Mozambique becoming the gateway that could encourage commerce. The Africa Energy Chamber, we do support the Government move, we do think it should move faster than they already are, but we also understand some of the handicaps that they have. We must also look at having local, pragmatic content to make sure that everyday people can see themselves and can participate in this industry. EBM: How was your meeting with President Nyusi? Is he receptive to foreign help? NJA: The President is very receptive to foreign help. He was the first one that told me that one of the critical things is to combat and defeat terrorism. [exclaims] He told me I didn’t ask him! He told me very clearly, and he is really on track with it. He also told me clearly –, and I have met a lot of African leaders, some will tell you when there is a crisis, “don’t go!”. He told me: “you go and see for yourself!”

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He gave me access to everywhere. There was massive support from the governor of Cabo Delgado. There were no restrictions going in there. We had full, unfettered access. The Government has been very transparent, and the President gave clear instructions to be no blockage. OK, now you have to watch your back [smiles and laughs], but it was very open. The President is very open to combating the issue, transparent in saying, “I have a problem, and I need a solution, and I need international solidarity and help to combat”. EBM: The investment so far amounts to 25 billion dollars. NJA: [exclaims and smiles] Yes! EBM: What, in your view and experience, impact in the LNG sector do these projects have? NJA: [emphasises] Huge! I mean, Mozambique has the largest gas discoveries in Africa. It only competes with Nigeria. But the advantage in Mozambique is that you will be able to send LNG to Europe, to Asia and other emerging markets that need LNG. Because in the era of energy transition, LNG is going to be seen as a bridge to the Future. So, it is needed to go through. That’s one! Number two, looking at the regional market where you would have to employ concepts like LNG to Africa, LNG to power the gas-fired plants in Namibia, in Zimbabwe, Tanzania and Botswana and even in South Africa. Because of energy transition and renewables, and clean energy, there has been a reduction of investment into coal. Look at every day in South Africa, for example. Every day you have load shedding, bringing in the gas could help curb the issues with energy. After that, you have to oversee pricing issues to ensure pricing is fair and affordable to all. The infrastructure that comes with it is also beneficial because then it will power the economies. When you have natural gas, you can create urea, ammonia, npk, methanol, fertiliser plants. Because when you have fertiliser plants, what do you do? You can build a big agricultural base, so we don’t have to go out begging for food. We have fertiliser plants that can power agriculture around your entire SADC region. Now you become an oasis and a bread basket where you can actually produce and export food rather than import. That is the key, and that is what sometimes people miss in understanding what gas can do! It’s actually a better fuel than petroleum because gas then just calls for development. It’s the small, medium enterprises that will generate jobs and sustainability, yes, from the benefits of the natural gas, but the long-term diversification and total benefit will be done by the secondary industries that benefit from the gas. EBM: In terms of the energy sector, LNG, you would say, is the cleanest of the energies. It offers you most benefits? NJA: Gas is cleaner than oil. We are not against renewables. We’re not against any kind of energy. For us, it’s just a very philosophical and ideological point of view. 1) Climate change is real. You need to deal and fix the issue. 2) how can you turn down a form of energy that can provide solutions where two-thirds do not have any access to any form of power? And the one third that does have access to power, it is riddled with limitations. Only a fool would get stuck with one form of energy that does not fix the problem. Let’s make it work. Ensure that it drives industries and that prices are fair. [pauses] Energy poverty is real. You go around Africa. People are being left behind in poverty because of no power, no electricity. Have to cook with firewood and charcoal, live with that some and how detrimental it is to health. Emissions too. We have to engage in a reasonable dialogue to discuss the right policies, practical way to find a solution and put people at the centre of the solution.

SU PER F EA TURE

A SUCCESS STORY IN THE MAKING EBM: A two-fold question: as the executive chairman of the African Energy Chamber, what is your overview of Mozambique with LNG. And post-pandemic? NJA: I think post-pandemic, between now and 2030 or 2035, we are going to see 100 billion dollars investment in Mozambique. To develop those gas fields around that figure. EBM: Do you see more companies coming in like BP or Shell? NJA: There will be more companies coming into Mozambique because what happens when you discover oil and gas. With the right kind of mapping, with the right kind of studies, great prospects can be found. There is great potential, amazing things can happen there, and it will skyrocket. I foresee that Mozambique is going to be bigger than Qatar when it comes to gas, no question! In that same region, there are already massive gas discoveries that are yet to take off. Some of them in Tanzania, so you’re looking at an up-andcoming region with great things that will happen. What people in the energy sector have predicted to be a disaster has turned out to be a bonanza! For Africa, you’re going to see the next big thing for Africa. Look at Senegal, the region around with Mauritania. There will be billions of dollars of investment. Africa will benefit greatly when politics and business work together for mutual benefit and the big picture of the global markets.

AN OVERVIEW OF AFRICA’S ENERGY SECTOR

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Elevation Business Magazine also sat down with Sebastian Wagner, CEO of Emerging Energy Corporation and executive chair of the Germany Africa Business Forum. EBM: Sebastian Wagner, give us a little bit of an insight into the African energy sector. How do you view the LNG discovery in Mozambique and the Future of LNG? Sebastian Wagner: Africa is obviously very intertwined with the global energy economy and is an exporter of hydrocarbon energy. And I think that you know these comparisons of saying it’s easier to export crude oil from Nigeria to Rotterdam than from Nigeria to Ivory Coast. Which is crazy and sad all at the same time. I think now with the Africa Free Trade Agreement, which has been signed this year, not only for energy hydrocarbons but for all products and markets, it’s a great note for optimism in an African context. I think energy – coming to your specific question – I think that LNG as a fossil fuel – which is a bad word these days – is a bit like the “Last of the Mohicans” in terms of fossil fuels. The Americans call it freedom gas, others call it low-carbon gas, so in fact, while gas is not the ultimate answer to fully getting rid of carbon dioxide emissions, it largely reduces CO2 emissions compared to other fossil fuels, I think it’s not the best solution in a Utopia, but it’s the least bad solution [smiles and laughs] going forward. I think the world will need at least another ten years – and that’s a bullish scenario – to fully transition from oil into other energy sources, and at least another 30 to 40 years to fully transition out of gas. So, I think gas is relevant, and countries like Mozambique, Senegal have been endowed with a lot of reserves. Tanzania, which was a country that was “off the list” for political reasons, now is coming back on for obvious developments that have sparked a current development with gas finds, which are almost as big as the ones found in Mozambique. So, I think Africa is at the forefront of this LNG transition into lower carbon footprint environment. Primarily as an exporter to

Asia, which is good and bad at the same time, yes, go where the market is, but Africa need a more encompassing local and domestic development of its gas resources. Two examples are the Mozambican-South Africa pipeline. The other is the West Africa pipeline which are gas infrastructure that remind us of an American pipeline that worked to some extent, obviously in a much smaller scale. They remind us of the gas pipeline network from Russia into eastern and western Europe. There is a lot that needs to be done on that front to make gas resources more domestic, to be used in a more domestic context, small scale LNG to power local powerplants. Senegal has this “plan emergent” to move away from HFO Fuel Oil into LNG and gas-powered powerplant, which makes sense from a CO2 perspective and, obviously, from an economic perspective. Senegal is not a country that is not particularly endowed with oil. It has a refinery to some extent functioning, but it does import a lot of its fuel oil, whereas the gas is right there. It needs to be exploited! It can be used to backfill into the local electricity production. Gas will help Africa on its path towards lower-carbon environment, and from that perspective, I am very optimistic about LNG on the global context as well as a pan-African context, like Equatorial Guinea who have traditionally been LNG producers and exporters, that have been at the forefront of an initiatives that help using African gas for African customers that lean very much on what Norway is doing. As you know, Norway is a long country [smiles], if you look at the coastline, that have a lot of stranded customers up North. So, what they do is they shuttle with small scale LNG tankers into the various villages that have receiving infrastructures to use LNG. This is something to copy this in a West African context, to supply stranded customers in Benin, Togo, Burkina Faso, etc… EBM: In closing, what are the negative or positive consequences for European investments in the energy sector? SW: I will focus on Germany, which is my home country, and I follow the political debate very closely. The refugee crisis in 2015, 2016 was obviously a wake-up call for European nations, Germany in particular, and there is a very heated debate on whether more refugees, no more refugees, the type of refugees… even the word refugee in German – which is flüchtling – has been banned. It’s a very emotional topic, and therefore we have to look at the root causes, and Europe has had extremely strong ties with Africa. Culturally speaking, we may not see this immediately, but both continents are very much intertwined and very close. In fact, the shortest distance is 10 kilometres. I think the future of Africa will also determine that of Europe and will also determine the whole topic of economic and political migration as long as the lights stay off in Africa, in terms of energy supply and stability, people will continue to migrate because without electricity nothing happens. It’s the foundation of a functioning economy. We say if the lights go off, the politicians go off! In order to stem the flow of migration into Europe, there needs to be an economic change driven top-down by the European Union in Africa, whether it’s grant money or preferential loans, to build the energy infrastructure that is required to give these economies a stable foundation. n

NJ Ayuk Elevation Business Magazine

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Business photo created by yanalya

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GOVERNANCE

Conflicts of interest – why

professionals trip over themselves

Without a doubt, conflict of interest ranks among the most common ethics risks that tend to materialise in the private and public sector. Many a professional has tripped over its wily wires, as it can rear its head most inconspicuously, writes Dr Claudelle von Eck

o mitigate against this risk from materialising, the obligation to declare conflicts of interest, therefore, appears in most Board charters, committee terms of reference and various regulations. It is often the only ethics risk that is singled out by name in governance-related documents, and for a very good reason. It has the potential to impair our judgement, even when we think we are totally in control and believe that the conflict of interest would not influence our decisions and actions. But one thing is for certain: when it comes to risks such as conflicts of interest, it is easy to spot them in hindsight and see the red herring they pose for others. However, when we are in the middle of the action, we can easily become blind to our own conflicts of interest. Conflicts of interest: 101 Conflicts of interest are situations where the judgment of an individual or groups of individuals is impaired due to competing interests or loyalties. This generally plays out when someone will be affected by the outcome of a decision. While many only think of it in terms of financial gain, it certainly is not just about money. Elevation Business Magazine

GOVERNANCE

For example, the outcome of a decision may place an individual in a much more powerful position where she may change policy decisions to align with her personal ideology. It is, however, not just about personal gain; it also plays out when the loyalty to people or organisations may be affected. Theoretically, it is easy to see the glaringly apparent conflicts of interest, such as when someone sits on a committee and also provides services to that company, especially when the committee decides which service provider would win the contract. Unfortunately, most of the time, many professionals remain on the surface in assessing conflicts of interest and completely miss those that are not as obvious to spot. Additionally, more often than not, only one dimension of conflict of interest is considered. There are three types of conflicts of interest, and all three should be considered,

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especially when the stakes are high, where power, politics, money or reputation is concerned. The three types are Actual, Perceived and Potential conflicts of interest. Actual conflicts of interest An actual conflict of interest refers to a situation where the individual or

Sometimes policies only refer to close family, but you could have a friend you may regard as closer than family. The fact that the policy does not cover friends does not mean there is no conflict of interest. Many professionals make a mistake in looking at the rules and not the spirit of the governance principle. The

Many professionals remain on the surface in assessing conflicts of interest and completely miss those that are not as obvious to spot. group of individuals make a decision or is part of a process that directly impacts their personal interests. That personal interest may not always be direct. It could also be a situation where someone the individual is close to would be affected.

rules do not always protect us from all mishaps, simply because you cannot write a rule for every scenario. When one understands the spirit of the principle, it becomes easier to see when you may be conflicted.

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Perceived conflicts of interest When a decision could be connected to an individual’s personal interest because of their proximity to the decision, even though they may not benefit directly or indirectly from the decision, it would be perceived as a perceived conflict of interest. The perception of outsiders would be that the individual in question may have benefited or that the potential existed that they could have benefited, creating reputational damage for the person or the organisation. People’s perception very quickly becomes our reality. The best way to approach a

perceived conflict of interest is to view it in the same light as an actual conflict of interest. To protect himself, a professional should have the ability to take a step back and ask the following question: If I were to participate in this, is there any possibility that a reasonable person standing on the outside may think there is a conflict of interest? If the answer to the above is yes, then it would be best to treat the situation the same way one should treat an actual conflict of interest.

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GOVERNANCE

A potential conflict of interest Just think of a situation where an individual’s personal interest may be affected directly or indirectly at a later stage. For example, when it is known that the person’s official duties may shift, a conflict that may arise at that time due to their involvement in a current decision, that potential conflict should be considered. As with perceived conflict of interest, it is best to treat a potential conflict of interest as an actual one. Even with the increased emphasis on conflict of interest, such as a meeting starting with an invitation to participants to declare their conflicts of interest, there are recent examples of situations where glaring conflicts of interest have been ignored or justified. They clearly illustrate that there is often not a deep enough application of mind when there is a conflict of interest on the table. The importance of seeking advice When in doubt, ask a sober-minded professional whether any of the three types of conflicts may exist in your circumstances so that you do not find yourself tripping over yourself. Sometimes the line can be blurry, as the connection is not always direct. As a result, it requires a debate before the penny drops. Assuming that you can discern all the nuances is the beginning of the fall, especially when you are the one who may be conflicted. The more you immerse yourself in the principle, the more sensitive you will become and the better you’re able to step over those wily wires. Dr Claudelle von Eck is the founder of Brave Inflexions.n

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GOVERNANCE

CASE STUDY: THE PERSECUTED FUNDING THEIR PERSECUTORS The Steinhoff scandal shook South Africa to its core around 2017. Although the company’s primary listing was in Germany, South Africans mostly bore the brunt of it, with many watching nest-eggs like retirement funds go up in flames. Most were taken by surprise. The company’s auditors at the time, Deloitte, came under significant fire for not seeing the problem earlier. The Board, consisting of numerous business heavyweights, was severely criticised for letting it happen under their watch. The Board appointed PwC to investigate. In the meantime, South Africans had all eyes on the National Prosecuting Authority (NPO) waiting to see the disgraced CEO Markus Jooste and his merry crew go to jail. At the time of writing, we were still waiting. And then came the news that the Germans are ready to prosecute Jooste. South Africans are hot under the collar because its NPA seems to be slow out of the starting block. The Hawks and the NPA do not seem to have the capacity to investigate this intricate web.

‘Funding’ those investigating you To crown it all, it has come to light that Steinhoff has given the NPA R30 million to fund the investigation. At first glance, it seemed like a rather noble thing to do, to provide the state with the funding it needs to do its work correctly. But there is just one little problem: The entity being investigated cannot fund its own investigation. Therein lies the seeds of the investigator’s hands being tied in doing his job properly. Steinhoff has argued that it has given the money with no intention to meddle and that they are staying at arms-length. The NPA also insists that there is no conflict of interest and that they are doing their work unhindered and would not be swayed by the funding in determining its outcome. Even if what both entities are saying is true, the issue of a perceived conflict of interest is still squarely on the table. There is no reason to deduce that potential conflict of interest will not be a significant issue. Further conflicts of interest I thought that was the extent of the conflict-of-interest issue until I came across a tweet by Power FM’s Khaya Sithole in which I learnt that it is PwC that is doing the investigation on behalf of the state. The problem is that PwC is the same firm that Steinhoff had brought in to investigate the matter when the scandal first broke. This raises the following questions: Firstly, PwC is now investigating the same matter they had reportedly already been paid a whopping R640m for by Steinhoff; and Secondly, they are now working for a different boss, who seeks a different outcome namely to prosecute. But the boss in question also received funding for the investigation from their previous boss, for whom they have already done the investigation. At the very least, there would be a perceived conflict in that PwC could be accused of being loyal to Steinhoff that has already paid them a bucket full. There are a host of professionals involved in this process. Directors, auditors, lawyers, investigators. Did they all miss the conflicts of interest? When the conflicts of interest were pointed out, the default has been justification. It has, of course, not helped matters that Steinhoff’s second Board chair after the scandal resigned from that position because of … conflict of interest. – Dr Claudelle von Eck

Book recommendation: To fully understand the web of intricacies that led up to the scandal, I encourage you to read Steinheist, written by Rob Rose.

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HE A LT H

Mental health in the workplace – why support is more important than ever before By Tristan Kapp

he Covid-19 pandemic has been a driving force for social isolation, remote work, economic pressures and uncertain career prospects. The consequence? Significant mental strain, resulting in depression and anxiety. To what extent do we see this impact on the world of work? And what can managers do to support employees who are struggling to cope? Tristan Kapp find some answers. In April 2020, the South African Depression and Anxiety Group (SADAG) reported a drastic spike in its help centre calls.

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Councillors and operators worked around the clock, guiding people seeking help for anxiety, depression and suicidal thoughts. SADAG says before the pandemic, they received 600 calls a day. After the outbreak, those numbers doubled. Mental health support groups and health studies reported similar trends across the globe. And it inevitably affects the workplace. Many employees struggled to adapt to working from home. Even as many companies found ways to return to business as usual, the workforce navigates the additional stress of managing safety risks at work while maintaining productivity. Considering the pressures of life and economic decline during the pandemic, it’s more important than ever to be cognizant of the link between a happy workforce and a productive business. According to a study done in 2019 by Oxford University’s Saïd Business School, with British telecoms firm BT, Erasmus University Rotterdam (EUR) and the MIT Sloan School of Management, professors Clement Bellet, JanEmmanuel De Neve and George Ward found that happy employees are 13 per cent more productive.

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HEA L TH

Empathy and assurance from a manager can go a long way in providing a safe space for employees “We found that when workers are happier, they work faster by making more calls per hour worked and, importantly, convert more calls to sales...there has never been such strong evidence,” Professor De Neve said. Dire consequences for the bottom line This study’s findings make it fair to conclude that it’s more critical than ever before to encourage a happier workplace – even if it’s a virtual one. In an article about mental health in the workplace during the pandemic, prof. Dr Sakhar Parikh, professor of psychiatry and associate director of the University of Michigan Comprehensive Depression Center in the US, emphasises that it’s in companies’ best interest to find constructive ways to address depression and anxiety amongst employees. After all, these conditions can lead to decreased productivity and increased accidents at work, but it ultimately affects the bottom line. He believes companies can help with a more proactive approach of “meeting employees where they are” instead of waiting for them to come forward at their own initiative. Parikh developed a programme for employers that provides strategies to improve mental wellbeing for employees. And instead of waiting for employees to reach out asking for help, the program equips supervisors and managers with free mental health tools specially tailored to assist struggling employees. This teaches supervisors and managers to informally check up on everyone after meetings. It also allows one-on-one arrangements where managers can talk to distressed employees without ostracising them or invading personal and professional boundaries. “Empathy and assurance from a manager can go a long way in providing a safe space for employees,” Professor Parikh said. Elevation Business Magazine

HE A LT H

Digital technology can be a lifeline for workers and not just an aid to productivity and presence. The need for managerial support Mental health programs and mental health champions at work remains a foreign concept in South Africa, says, prof. Stoffel Grobler, founder of The Corporate Mental Health Company and clinical head of psychiatry at the Elizabeth Donkin hospital in Gqeberha (formerly Port Elizabeth). He believes there is a need to start educating managers about the signs and symptoms of common mental health disorders. We also need to teach them how to respond in a supportive, empathetic and nonjudgmental way. This is why he is a passionate advocate of a leading UK based mental health program called “i-act”, which is designed to take the conversation about mental illness into the workplace. The name if the program is an acronym for (i) improving wellbeing; (a) advocate and access further help and support, (c) connect and communicate with people; and (t) take tools and take advice for yourself. While South African businesses still have a long way to go, Grobler says he is starting to see a shift 66

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amongst employers where they say, “we know this is a stressful time for everyone, we don’t know anything about mental health problems, let’s get some experts to teach us”. He believes employers are also putting in an effort to build greater capacity to support employees with mental difficulties. He refers to an investment group in South Africa, where he did talks during mental health awareness month in October 2020. “I was told that they appointed two clinical psychologists, who were fully booked. This was amazing news to me!” Self-care is a good start In these challenging times, there is also a need for employees to be more mindful of the fragility of their mental wellbeing. Mmabatho Masoga, the Gauteng Mental Health Society spokesperson, encourages spending time away from the digital world. “It’s important to schedule breaks where we set aside time to escape all forms of digital screens. Give your eyes, neck, shoulders and back some much-needed rest!” She also recommends setting clear

THE GAUTENG MENTAL HEALTH SOCIETY’S GUIDELINES TO PROMOTE BETTER MENTAL HEALTH IN THE WORKPLACE: 1. Employees shouldn’t be afraid to ask for help from colleagues or supervisors. 2. Urge employees to try to use video calls whenever they can. There’s no substitute for seeing a colleague’s face. 3. Encourage routine. Help workers set up a place to work remotely that is as free of distractions as possible. Also, help them to try to stick to a relatively standard working schedule with regular breaks, including a lunch break, and aim to finish work at an appropriate time. 4. Retain a structured mindset. Encourage workers to not work in their pyjamas all day! Getting dressed for work is another positive mental exercise and delineates between work and home life. 5. Promote support through Human Resources in the workplace.

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boundaries between work and home - even if you are working from home. “If you don’t have a dedicated workspace, make this priority number one.” It’s essential to have an office “with a door you can close to mentally and physically separate work from home life”. According to Masoga, many companies have been happy to assist with this by providing office furniture, where necessary, not to mention the provision of IT services. That said, it seems we still have a long way to go when it comes to utilising all these tools to provide more support for mental health. Says Masoga: “As an employer at a time like this, it is important to appreciate

just how drastically workers’ lives have changed. Digital technology can be a lifeline for workers and not just an aid to productivity and presence.” It’s becoming increasingly apparent that if we do not show more proactivity to provide support for mental health while also being mindful of our own, the next greatest pandemic of our time might just be mental illness. So, be self-aware, practice self-care. Encourage your employees to do the same. Have further support in place, where necessary. A happy workforce can go a long way – not just in business but also in a world where everyone is experiencing some form of strain as we’re adapting to a new normal. n Elevation Business Magazine

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B R I N G I N G Y O U I N T E R N AT I O N A L N E W S Photo by Lindsay Moe

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INTERNATIONAL

Bangladesh – impact of coronavirus pandemic The global Covid-19 pandemic has wreaked havoc with economies throughout the world, and Bangladesh has not been spared. Bangladesh reported its first Covid-19 patient on March 8, after which the government announced a nation-wide lockdown by the month-end to curb the spread of the virus.

fter a year-long pandemic situation, concerned with the worsening economic situation, the Bangladeshi government is gradually lifting the lockdown, to keep source of revenues alive. Opening-up of the courts, offices, factories and business establishments on the condition of complying with proper hygiene seems to be the immediate solution.

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INTERNATIONAL

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INTERNATIONAL

While the banks provided incentive loans to the large industrialists such as ready-made garments owners, the small and cottage industries could not accept incentive loans due to many, various complications. Battered RMG Due to the Covid-19 lockdown, ready-made garments factories were shut, production fell and the country lost thousands of shipment orders to the dedicated markets of Europe and America. The 2019-20 fiscal year GDP growth targets were up to 8%, but 5.24% achieved, which can be said to be satisfactory. The national per capita income is worth 8.2 but at the end of the year, by virtue of the pandemic, it does not seem it will be normal in the near future. In that case, it will also be difficult to exceed 6% of GDP growth. While the banks provided incentive loans to the large industrialists such as ready-made garments owners, the small and cottage industries could not accept incentive loans due to many, various complications. Although production in factories now continues, they are not running at capacity. New investment in

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industrial factories is very low as buyers turned down many orders. Macroeconomics researcher Mizanur Rahamn noted that, “While it is not possible to calculate the amount of medium-term and long-term losses at this time, it is not impossible to estimate. As a result, the backward linkage and forward linkage chains in the domestic economy will be severely damaged, which will disrupt the overall production system in RMG.” A positive spin to the pandemic would be the retention of workers nationally: “It is not possible to eradicate this disease worldwide like smallpox without inventing effective vaccines and its widespread use. So other countries may stop taking workers from our country until the effective vaccine corona is invented and its widespread use is confirmed worldwide.”

INTERNATIONAL

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Rahamn further said that, as a result, the remittance flow of Bangladesh may be severely affected which is very visible at present. The demand for ready-made garments in the world market may be greatly reduced. As a result, Bangladesh’s export-oriented garment industry will face more competition. Institutional and self-employed business, hotel-restaurant, public transport, air transport, and the tourism sectors have been affected gravely. Due to the increase of about 7% of GDP growth, there has been an increase in employment and industrialization in the last decade, and poverty drops below 12% due to adequate support for the growth of GDP growth, employment and industrialization. But, due to the pandemic, small income groups lost their work by 22%. According to a survey of BIDS, about 1 crore, 10 million new people became poor. Ready Made Garments owner Modhusudon Dutta said, “The lowincome people are broken by saving or lending from relatives to relatives. Clothing industry is not running in 100 percent capacities. The export orders of many ready-made garments’ organizations have been postponed or canceled due to the epidemic situation in Europe-America. As a result, many workers lost jobs.” Dutta added, “An important controller of economic condition is the import-export of the country. Although doing this, there was a negative situation in import of the country before the epidemic; Due to taxes, due to the recession in the country, there

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INTERNATIONAL

Keeping inflation in check Bangladesh is a great success in keeping inflation control, although the price of rice, flour, vegetables may go out of reach. Overall inflation is comfortably below 6%. The amount of revenue collection in the country has gradually been increasing for two decades. About 85% of total revenue earns the National Revenue Board through direct and indirect taxes. This revenue, however, is not satisfactory in the ratio of GDP. Compared to Asian countries, the ratio of tax-GDP in Bangladesh is very low, which is currently below 9%. Due to the pandemic, the revenue collected in 2019-20 is Tk 2 lakh 18 thousand crore, which is less than Tk 5 billion compared to the previous year. The current fiscal year seems to have some speed in revenue collection. Reform and modernization of revenue administration is important in order to increase tax-GDP ratio. The foreign currency reserve in the country has increased as fast in the last fiscal year, and it promises to continue in the current fiscal year. As a result, in late December 2020, the foreign currency reserve amount of Bangladesh Bank crossed $43 billion. Due to the taxation of international flight disasters and Hundi business, most remittances are coming in a valid way for giving rise to foreign currency through a legal way through the bank. Apart from this, the reduction of import trade is another reason to increase the reserve growth.

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is a collapse in import. 26 percent of the total import of Bangladesh comes from China.” At the initial stage of Covid-19, imports decreased a lot. However, imports are operational from China in the next phase. In 201920, the overall imports decreased by 8.66%. Up to October of the current fiscal year, the amount of import reduction is 12.99%. Of Bangladesh’s exports, 56% goes to the European Union and about 26% goes in the United States. In both countries, many export orders have been suspended due to the pandemic, mortality, lockdown and business recession and the export decreases. However, in May-June last year, many suspended export orders were reinstated due to the positive section of exports. Because of the cost of ready-made garments in Bangladesh, its demand is not enough. Nevertheless, the export of last fiscal year is 16.93% less than the export of its previous year. Exports increased 3-4% compared to the previous year.

INTERNATIONAL

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Slow Investment

The new investment in the country has been slow and, thus, the import of capital equipment has been less. Launching industrial factories are trying to survive, but the production and sale of mobile phones, laptops, computers and equipment and refrigerators, television and other technology has increased. With that, there was no disturbance or loss in the production and supply of essential commodities, cigarettes, flour, drinks etc., cigarette, flour or drinks. Boom for health goods Naturally, health related products, including medicines, sanitizers, tissue and toilet paper, are more useful in dealing with the pandemic. These producing industrial establishments have been doing good business.

Unemployment shows its face

Many lakh workers are unemployed. Due to the closure of the country’s educational institutions, permanent flaws in the education system are being created. The educational system is weakening in the evaluation of auto-promotion or evaluation. In closing, it was recently reported in a new survey by UK-based Center for Economic and Business Research (CEBR), that Bangladesh will become one of the top 25 economies in the world by 2033. The current size of Bangladesh’s economy is 302 billion, which will be 855 billion in 2033. The country has proven successful in dealing with various adversities and natural disasters but the world-wide pandemic will be a challenge. This in itself will illustrate the resilience of smaller economies, whilst noting the overall impact that the pandemic has on global economies. n Elevation Business Magazine

LEGAL

Litigation expenses: How much is too much? By Jean-Ray Pearton

he majority of my work, as well as my passion, lies in litigation. Due to the escalating costs of running a business and owing to the uncertainty of times, it seems apt to write a brief recommendation on what your company should budget and possibly expend on a specific litigious matter. Let us, for a moment, exclude labour disputes and other principal matters. A principal is often an expense that cannot fit any budget, and disputes between an employer and employee are neither uncommon nor foreseeable. The categories above also develop a life of their own as soon as the trial starts.

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LEGAL

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LEGAL

Globally speaking, the business sector has a history of throwing good money after bad debts.

Let us then set the stage for our example. Mrs X owes your business a substantial amount, being R500 000, for services rendered at her specific instance and request. Seeing as she is no longer taking your calls or answering your emails, you decide to schedule an appointment with your attorney. After all, such legal expenses should be for her account, right? In a perfect world, the answer would be yes. However, in this instance, the answer is: Not really. Globally speaking, the business sector has a history of throwing good money after bad debts. If we were to follow suit with the United States, Canada, and the UK, we would be expending between 24 and 26 per cent of our total revenue on the legal fees. It feels safe to say that most of the funds are spent on litigation as the bulk of the legal leg work, just like contracts and a general advisory is by in-

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house counsel or in-house legal departments. As far as South Africa is considered, I can confidently state that the only parties who stand to gain from protracted litigation are the respective legal teams. The point I am trying to get across is that a case sounding in money should boil down to a sound business decision. The South African Government also struggles to afford its litigation fees, marking an almost 100 per cent increase in legal expenditure over the past decade. According to the Finance Ministry, September 2020 reports, municipalities have expended a collective R1.2 billion on legal fees. I merely make mention to highlight the litigious nature of our business society. A business owner should, of course, not be bound by the fiscal spend. The importance of choosing your battles A typical business, especially in our current global economic climate, is subject to

LEGAL

Jean-Ray Pearton is the Head of Legal at SPM Publishers International.

fluctuations in cash flow and cannot afford a no-holds-barred approach to litigation in general. Cash flow concerns aside, the main reason for my recommendation lies in the fact that there exists a genuine risk that your legal fees might either exceed the debt that you seek to recover or it might extinguish a significant portion thereof. This is so even if your adversary, the delinquent debtor, is ordered to contribute to your legal costs. There is a substantial difference between the court tariff, what your adversary is obliged to contribute and your attorney’s hourly rate. The fees due to your attorney are, of course, always for your pocket, and the contribution of the adversary will only be a solace. Upon this example, one could easily expend between R400 000 and R500 000 throughout the legal process, and one will not be fully reimbursed for the legal costs spent in the endeavour. There is much legal consensus that an unsuccessful litigant’s contribution amounts to roughly 60 per cent of the actual expenses incurred during the legal process (on average). To conclude, ‘What too much’ is will depend on the facts of the matter. It is sound business practice to discuss legal costs in consultation with your attorney before overexposure can occur. It is even better business practice to manage the total risk of litigation timely and lucidly.n

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LIFESTYLE

Tap Into The Greatest Power In All Creation By George Mutendadzamera

elcome to the wonderful, powerful, and empowering world of our intellectual faculties. Every advancement, every success, every innovation, every fortune mankind has made has, at its source, the greatest power in all creation – the mind. The mind has been described as “the greatest power in all creation”. Indeed, we are endowed with higher mental faculties designed to make us the highest form of creation on earth. Each one of us, yes, each one of the 7.8 billion odd people on earth, has the six extraordinary gifts which, when put to good use, will

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We all have infinite potential and there is no limit to what we can achieve. Background photo created by kjpargeter Elevation Business Magazine

LIFESTYLE

What lies before you and what lies behind you are very tiny matters compared to what lies within you. Wlevate every person to extraordinary levels of achievement. We all have infinite potential and there is no limit to what we can achieve. Whilst there are many factors which account for the success of many people, the full utilisation and development of these faculties is certainly one of the main reasons why some become that much more successful than others. Chairpersons of Boards, Senior executives, successful business-persons, successful leaders across disciplines all share the one common trait, that is, they can tap into the greatest power in all creation by fully accessing their higher mental faculties. These men and women are not the plaything for outside forces. Even though they observe and are aware of what is going on in their outside world, they are capable of creating and maintaining individualised existences. “What lies before you and what lies behind you are tiny matters compared to what lies within you.” This inspirational statement by Ralph Waldo Emerson provides a good entry point to discuss the subject of our higher mental faculties, the six extraordinary gifts of the mind which are Perception, Will, Reason, Imagination, Memory, and Intuition. Our Perception is our point of view. Nelson Mandela famously said, “It always seems impossible until it’s done”. Many times we psyche ourselves out of tackling issues because they look ‘impossible’, but once we change our perception of them or change our point of view,

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then suddenly we can do the ‘impossible’. Our Will gives us the ability to hold one picture on the screen of our mind to the exclusion of all outside distractions. It gives us the ability to focus and concentrate. You can develop this faculty and when you do, you will amaze yourself at the things you can achieve. Reason is your ability to think. Since you are in charge of your thinking you should not expend time and energy on why something cannot be done. Unlike all the other creatures in the world you were bestowed with this incredible faculty which enables you to ‘figure things out’. Your Imagination is indeed a truly extraordinary gift! Everything is created twice. First with imagination on the screen of your mind – when only you can see the picture. Second, when it manifests in your material world as a ‘thing’. The wonderful paintings, the great song no one can forget, the great engineering feats, were all at some stage just pictures on the screen of someone’s mind. Your Memory is perfect. There is no such thing as a bad memory. Your memory will be as strong or as weak or as perfect or as imperfect as you allow it to be. Just like any other muscle in your body, you can strengthen and develop it through continuous exercise. The Bible refers to it as the “still small voice”, some people refer to it as a sixth sense, and Albert Einstein says, “I believe in intuitions and inspirations…I sometimes feel that I

LIFESTYLE

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George Mutendadzamera

am right. I do not know that I am.” Your intuition allows you to know and know that you know something even though you have no tangible or physical evidence. The wife or husband will know that the other is cheating on them even though they have no physical evidence – they know that they know. The good news is that one can strengthen and develop this faculty and utilise it to great advantage. We are all born with the six higher mental faculties but sadly, because of self-imposed limitations, very few people ever fully utilise them. And yet we can take full advantage of them if we choose to do so. Yes, it will require time and effort, but the rewards far outweigh the input. These

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higher faculties are what separate us from the rest of the animal kingdom. Today, at the touch of a button, you can talk to associates, friends, loved ones who are thousands of kilometres away. Mankind is sending spaceships to explore space and the planets including the sun! Yes, NASA’s Parker Solar Probe is the first-ever man-made mission to touch the Sun and the Perseverance Rover recently landed on the red planet, Mars. We are exploring the deepest oceans and developing cures for all manner of diseases. All these inventions 84

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were at some stage just pictures on the screen of the mind of the inventor. Our imagination knows no limits and each one of us has access to these higher faculties. Tap into them, tap into the greatest power in all creation and create a better world for you and all of us to enjoy. The life you really want is within your grasp if you can simply stop the outside world from controlling your mind and you begin to live from the inside out. Refuse to be the plaything for outside forces. n

LIFESTYLE

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Our imagination knows no limts and each one of us has access to these higher faculties. Tap into them, tap into the greatest power in all creation and create a better world for you and all of us to enjoy.

By George Mutendadzamera Proctor Gallagher Institute Consultant, Business & Life Coach, Speaker, Facilitator, Consultant @ Vula Unlock Consulting. https://www.facebook.com/george.mutendadzamera.7 https://www.linkedin.com/in/georgemutenda/ https://www.youtube.com/channel/UCqb9qnn9a0tanbwvJk5ClCg https://www.vulaunlock.com

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POLITICS

Truth and other Commissions: Are they effective? By Bonolo Mahlatsi

ince the 1970s, societies that have been devastated by repressive and authoritative regimes have sought reparation, justice and healing through truth commissions. This restorative process allows a new dispensation to ask vital questions of how their state may deal with the conflicts and traumas which the nation had faced in the past. There are a full range of mechanisms in society that ensure accountability and justice under the umbrella term of ‘transitional justice’. Transitional justice is a critical component that facilitates initiatives for the right to truth and to account for the root causes

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POLITICS

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POLITICS

To date, there have been more than 35 truth commissions since the mid-1970s. There have been truth commissions in Chile, Ghana, Morocco and Argentina, which were all important exercises in the context of their nations. of conflicts in society. Mechanisms are then developed to address and resolve the conflicts that happened; truth commissions are one of them. Truth commissions differ between countries, depending on the conflicts that they faced. Thus, they are formed at varying degrees, mainly to discover, clarify and to contribute to justice and accountability. In essence, commissions of inquiry are fact-finding missions, used to respond to serious violations against human rights laws. To date, there have been more than 35 truth commissions since the mid-1970s. There have been truth commissions in Chile, Ghana, Morocco and Argentina, which were all important exercises in the context of their nations. Another noteworthy and effective truth commission that was presented in 2003 was created in Peru. It gathered in-depth case studies to understand the nature of human rights violations. One of the most well88

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known inquiries globally was the Truth and Reconciliation Commission (TRC) of South Africa. Truth commissions are also essential in that they serve to clear the image of countries in the eyes of potential foreign investors. They are a ‘clean-up’ process so that for everyone may see the actualisation of democracy. South Africa, for instance, has a history of social injustices and human rights violations. The country also has a legacy of finding revolutionary ways to address ever-existing conflicts. One such revolutionary act would be the commissions of truth South Africa has undergone post-apartheid. Commissions of inquiry are among many other avenues available to governments inquiring into different issues. Commissions of inquiry can present a chance for healing and reform for a country and be beneficial for economic growth. For instance, they may strengthen and defend

POLITICS

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the democracy of a country. According to the Business Leadership South Africa (BLSA), institutions of democracy, such the NPA and SAPS, should be defended and strengthened. The Truth and Reconciliation Commission (TRC) in South Africa was a restorative body to reveal the abuse of human rights during apartheid. The commission served to assist in building the democratic society of South Africa. The TRC is regarded as somewhat successful. It is believed to have shown the importance of public participation. Furthermore, it may have helped in uniting people and bringing about healing. However, it failed to adequately address restoration for victims in a retributive way. It forced a reflection on the trajectory of these commissions and also the rife depravity and Elevation Business Magazine

POLITICS

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acts of dehumanisation within that period. The TRC brought much about the much anticipated hope for South Africa to begin anew. Truth commissions are regarded as the prime transitional justice mechanisms in post-conflict societies. Conversely, there are some people who have differing opinions about the South African commission. However, it can be used as a yardstick in South Africa when evaluating the ongoing Zondo Commission of Inquiry in the country and in comparison with other countries, since the TRC has earned its merit in playing a difficult role in nation building for South Africa due to its history in

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violence and unrest. In January 2018, a public inquiry (known as the Zondo Commission of Inquiry) was launched by the government into the affairs the former president of South Africa, Jacob Zuma. It was launched to investigate allegations of state capture, fraud, corruption and other matters while Mr Zuma was holding public office. One similarity the two commissions may share is that they are both ad hoc bodies that have been set up to investigate and report the causes and consequences of social issues. It is a daunting task to evaluate both commissions, as their magnitudes vary in their measure and capacity. The

POLITICS

two commissions cannot be compared. One was a matter of morality, while the other is investigating a series of criminal activities and its effect on the whole population of South Africa. Prosecutions are difficult to achieve, most especially because they come at a cost of time and money. Already the Zondo commission is costing taxpayers a fortune, presently standing at R356m, and counting, and yet to yield its findings. South Africa has been, and still is, deeply divided. It is still healing from injustices from the past, while facing contemporary problems. The country must be forgiven for the expectations it may have of the functions of the Zondo commission. Essentially, with the Zondo Commission, South Africa needs to witness societal change. As long as injustices from the past remain unresolved and unmitigated, they will

continue to fest in the country. Subsequently, there will be more demands for truth commissions. Despite how costly the process is, countries need to embark on the exercise of commissions. In that way, they will illustrate ethical leadership in their respective countries, which will allow for a clean administration. Essentially, a country like South Africa deserves unsoiled management. After the Zondo commission, the negative effects of state decay may be reversed and the country may be able to divert its focus to issues of socio-economic growth and development. The common aspect among commissions of inquiry have been to bring healing, peace and prosperity. This is certainly the hope for South Africa. n

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M E DIA& M A R KE T I N G

How Brandmoji is taking emoticons and branding to the next level Digital technology connects more South Africans by the day, with up to 24.5 million using smartphones for chat and social media. The possibilities for marketing and advertising are endless, and entrepreneur Jonathan Yarwood found the sweet spot with Brandmoji, an app enabling fans and brand ambassadors to use their favourite brand logos in everyday conversations. It’s a win for the brand-enthusiasts and advertisers, and leading players in the startup sector are taking notice. We met up with Jonathan to chat about the ups and downs of his road to success.

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M ED I A&MA RKETING

Thank you for taking our questions. You came from the corporate sector and ventured into entrepreneurship. Please share briefly how your entrepreneurial journey started and what Brandmoji is about. That is correct. I transitioned from corporate about five years ago to pursue various business ventures, one of them being Brandmoji Media. Since then, it has been quite the adventure. Entrepreneurship is not for the faint-hearted. The idea really was to put brands in consumers’ hands and enable brand lovers to include their favourite brand logos in their everyday conversations and social media posts. The Brandmoji app, essentially a custom keyboard, can be downloaded and used in everyday conversations. It is free, compatible with both IOS and Android and can be used across all social media and instant messaging platforms. A large number of Brandmoji fans are using the keyboard to include their favourite brands in their Instagram story posts. How do you get your brand to live in your consumers pocket? At Brandmoji we have answered this question by developing a mobile app, but more specifically, a predetermined custom keyboard for brands. The Brandmoji keyboard consists of a library of Brandmojis where a multitude of brands are represented - an aggregator of your favourite brand logos that can be used across multiple 3rd party social media channels as well as in private chats like WhatsApp. We collect data on impression usage and offer this data back to the brands and agencies to leverage from. Most notably is that for the first time ever, we are able to help brands measure their social presence more effectively in the “dark social” space as well as enhance user content on social media. Welcome to the next exciting step in the evolution of our modern language!

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M E DIA& M A R KE T I N G

Since the name, Brandmoji combines the words – brand and emoji … how important was it to launch a business that paid attention to communication and language progression? Everybody uses emojis. Some interesting stats: - 25.4% of tweets with emojis get better engagement - 57% of Facebook posts get more likes while 33% get shares and comments if they have emojis in them - 6 billion emoticons are sent every day - 40% of millennials engage with pictures - Emojis increase Instagram engagement rate by 48% We believed the next exciting step in the evolution of our modern language was the use of branded emojis in conversation, and hence Brandmoji was born.

were in survival mode. A few others to note were things like raising capital, dealing with doubt, not only from within but from your immediate circles and the ever-changing environment of operating systems.

Seeing how technology is crucial, where do you foresee the AdTech (Advertising Technology) industry moving to in the next five years? Advertising technology tools will become more and more important in the next few years as they enable marketers to cover a full spectrum when developing marketing plans. Data on these activities is crucial, and that’s where I believe that value is. If you can create something that is fun, current and easy to use, I believe you will be able to reach critical mass and therefore have a pool of data that can really make the needle move.

In your opinion, how can brands better cater to their consumers seeing how technology and trends are continuously evolving? I think a key factor is rewarding consumers for their brand loyalty. With the current state of the world, I believe that consumers spending their hard-earned money on a product should be recognised and made to feel special.

They say being an entrepreneur takes more than having an entrepreneurial mind but also knowledge of how business works. Can you tell us more about some of the business stumbling blocks since you launched Brandmoji in April 2020? Well, we have been working on the research and development of Brandmoji for a bit longer, but yes, we officially launched smack bang as lockdown started on 17 April 2020. So that was one of our biggest stumbling blocks - launching a new digital platform when most companies

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In a time where businesses are buckling under pandemic pressure, how are you keeping your business ahead? Please share some of the innovative strategies you have implemented to make sure Brandmoji stays relevant? It hasn’t been easy with major constraints on budget and general uncertainty, but we have looked to align ourselves with the right partners, which has helped support our vision. We continually look for ways to iterate and improve the Brandmoji App. We have some exciting things planned for the very near future.

Your business will be a year old this year. Please share some of the successes you’ve attained thus far. Since our launch in 2020, we have aligned ourselves with some great brands, including some fantastic educational institutions. We have also improved our dev team and recently teamed up with the Nfinity Group, which is SA’s # 1 Influencer marketing group, to synergise around the distribution of our offering.

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What is the hardest lesson you had to learn since starting your business? I think the hardest lesson for me was learning that nothing ever really goes according to plan, especially in this everevolving space. And what I learnt from that is to be patient and flexible in my approach and to keep believing in my vision.

Jonathan Yarwood

Lastly, which tech start-up/company are you excited about or inspired by? I am most excited about teaming up with the Nfinity Group (www.nfinity.co.za) as I believe that influencer marketing is such an exciting, fast-growing space and is yielding some unbelievable results for marketers. Not only is it a super authentic way to market your brand, but it is a great opportunity for content creators to use their creative skills to earn a living. For us, it means access to a distribution channel, resulting in the partnership being a perfect fit. If that’s not inspiring, I don’t know what is. n Elevation Business Magazine

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M OTO R I N G

& Might Overtake VW is getting

on the “buzz-wagen”

EVERYONE

et’s be frank – to date, South Africa’s uptake of electric vehicles (EVs) has been on the slow side. Will VW’s entry into this segment be the kickstart that it needs? Read more to find out. The World has always been taken with trends, influences and wholesale herd movements. For example: in fashion, you had the Converse All Stars, then all of a sudden, all trainer, sneaker, and tekkie making brands jumped on the white cloth shoe bandwagon. The same thing happened with the popular Timberland yellow boots. We have seen this in fashion, the trend in smartphones and laptops. And, of course, the motor industry is no stranger to this. Maybe better than any industry, it embraces and takes the trends to the

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next level. We saw it with the crossovers, the SUVs, the miniMPVs and with every other segment. By the end of the previous century, VW launched the “New-Beetle”, and immediately BMW got on to the trend and launched the new-Mini. Then Fiat followed suit, with the release of the retro – and best retro of them all – Fiat 500. The first EVs are older than you think. The latest and long-lasting trend in the motor industry is electric.

It started way back in 1832 when Robert Anderson developed the first crude electric vehicle. However, it wasn’t until the 1870s that electric cars become practical. There also was even a period where motorcars were powered by steam. The World was fuelled by crude oil, coal and natural gas, so electricity as a means to replace internal combustion waited a little longer. This latest trend started “officially” in 1997 with the launch

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of the Toyota Prius. The Prius was - and continues to be a hybrid where there is an electric motor that works in tandem with a petrol-powered engine. The trend didn’t catch on properly until 2008, when the global credit crunch hit the financial markets and then sent crude oil skyrocketing, which sent fuel prices up and only then, these cars began to make some sense and see demand rise. But, like everything, new technology usually lacks refinement and reliability. So the industry pressed on a few more years and eventually gave us something like the Fisker Karma. This car had an onboard petrol engine that worked as a generator, feeding the electric motors’ power. But the electric vehicle only really caught on until our very own South African born Elon Musk came along with his Tesla company. These are the first fully electric cars powered by lithium-ion battery packs. Fast forward a few years on, and the Nissan Leaf, Renault ZOE followed. Later we arrived at the BMW i3 (also sold in South Africa) and – deep breath – VW with its ID-

generation of electric cars. The first-born of this new generation was the ID.3, a hatchback launched in 2019. Now, we have a new member of the family, the ID.4. So far as information goes, the ID.4 is expected to be sold on South African shores in 2022. A car for the New World Projected to be a “world car”, like the Ford Focus, the ID.4 is a compact SUV and is powered by a 150kW electric motor supplied by a 77 kWh battery pack. VW said that at the cars’ launch, it is expected to have a range of up to 520km on the WLTP cycle (World Harmonized Light-duty Vehicles Test Procedure). In other words, not quite able to do the JohannesburgDurban holiday run unless there is a charging network along the way. The house of Wolfsburg claims the ID.4 will do the 0-100km/h dash in 8.5 seconds, with a top speed of 160km/h. This is not bad for a car that weighs 2124kg.

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The first versions of this all-electric car will only be rear-wheel drive, and VW says that the vehicles’ 210mm ground clearance will allow it to perform well on not very rough off-road terrain. A dual-motor fourwheel-drive version is also in the pipeline. With dimensions just shy of those of a Volvo XC60, the ID.4 is an embodiment of the crossover spirit. Under the skin lies the same MEB platform used by the ID.3, with the wheelbase and tracks extended for the ID.4. Soon, the Audi Q4 e-Tron and other marques of the VW group will use this same platform. Inside, the ID.4 breaks even more with the VW traditional layout, furthering the image set by the ID.3. The dashboard structure is loosely inspired by that of the Golf. However, the cockpit is even more minimalistic. The visible lack of buttons and switches may even shock a driver that is coming, let’s say, from a VW Tiguan. VW, whose ambitions in the EV market surpass all the others – we’ve been promised 70 new electric models by the year 2028 and told that 70% of all new VW’s sold in 2030 would be EVs – its volume potential is simply colossal. If the ID.4 is properly good, it will probably light the fires beneath the electric offensive.

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TH O D TH OUGH OU

Conversation, controversy, opinion, fact from global, local and African entrepreneurs, captains of industry, business experts, influencers and knowledgeable financial journalists. Elevation Business Magazine

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FOR THOSE WHO SEE THE WORLD DIFFERENTLY

We do not believe in the status quo. To change the world & leave a mark, one has to wander from the beaten path…leaving behind an old world. At CANNAFRICA, it is that mindset that we represent. We are more than just a cannabis retail company. We are about a lifestyle that promotes vitality, balance & good health.

Stay In Touch

A Division of Labat Healthcare

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TECHNICAL SPECS Model: Volkswagen ID.4 1st Edition Pro Performance If not? The shadows of the “Dieselgate” still loom large for the German manufacturer. Pricing The 1st Edition trim, £37,800 in the UK, is a hefty price to pay, and we will have to wait and see what the asking prices will be like in South Africa but expect to pay nothing less than R680 000 for one. Also, one crucial point, in terms of business, is will the ID.4 be built in South Africa? Creating a new industry, more jobs, and giving even greater strength to the country’s VW factories? If the car is not built in our country, the import duties and extra taxes may push this “people’s electric” right out of affordability. When contacted directly, VW South Africa told this publication, in an official document, that “the road to electrics already started as of last year”. “However, we cannot confirm when the ID.4 will come to our market. Therefore, we have no information to share at this stage.” Building an EV charging network in South Africa Charging facilities for electric vehicles are springing up and are greatly concentrated in the big urban centres of Johannesburg, Cape Town, Durban. According to the “Electromaps Borderless Charging” website, a company based in Barcelona, Spain, there is a small “line” starting to appear across South Africa. It can potentially take you to Cape Town or Johannesburg. According to Jaguar’s official website, the information on the matter is as quoted: “South Africa’s city centres will now also be connected by the Jaguar Powerway – a series of 22 charging stations along the N3 between Gauteng and Durban and the N1 between Gauteng and Cape Town. Cape Town will also

Price: not yet available Electric motor/s: AC synchronous electric motor Drive battery: 82.0kWh Power: 150kW (201bhp) Torque: 310 Nm (229lb ft) 0-100km/h: 8.5sec Top speed: 160 kph (99 mph) Kerb weight: 2124kg Range: 500 km (310 miles) Max. charge rate: 125kW Rivals: BMW iX3, Ford Mustang Mach-E, Tesla Model Y

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be connected to the Garden Route with a series of charging stations along the N2 to East London. The majority of charging stations on the public network will be 60kWh fast chargers, meaning 100km of range will take around 20 minutes for Jaguar I-PACE owners. A charge from 0 to 80% will take around 72 minutes.” Compatibility is key But will these Jaguar charging centres be a standardsize-fits-all socket or exclusively for Jags, as some charging points for certain electric cars are in Europe? And the more pressing question is, with the failing power grid in the country, the severe and longlasting bouts of load shedding, can it be a sustainable infrastructural network? How reliable is it, and what can you expect on a journey from, say, Johannesburg to Durban, close to 650 km, and there is no power to charge your vehicle up? Or even a shorter trip, Pretoria to Johannesburg and back? 108

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Consumers are getting more choice, with 18 electric models available in 2018 growing to 120 by 2025. And that will help push electrics to a 9% market share by the year 2025. However, like everything new, prices and availability also play a considerable part in demand. Beating the odds Two things are true of this electric saga: Firstly, the more income a nation has per capita, the more it’s population care about environmental issues and can also afford the high asking prices for these vehicles. Secondly, people with the purchasing power to afford these cars are looking for reliable, fast-working solutions. As a result, asking someone to pay R680 000 for an electric vehicle where range, charging facilities, and power issues are serious factors to consider, a ready-made solution of something else that takes 5 minutes to refuel at the pumps means they won’t be easily persuaded to go “green”. Time will tell if these cars will take off in South Africa. For now, they are rare, and so are the charging facilities for them. The prices, which are in the luxury car market’s upper echelons, is also a deterrent. However, if one company is determined to win and can find quickfire solutions to this problem, it is Volkswagen. Let’s see where this electric trend takes the ID generation for the company and its group. n

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CANNAFRICA – normalizing and elevating the use of cannabis (marijuana) for medicinal purposes By R a ma b a ka A b el Ts h i m ol e

he use of cannabis for various purposes has been happening for centuries, whilst noting the illegal implications that befell it. It was quite recently on 18 September 2018 that the South African Constitutional Court decriminalized and made a ruling that provided certainty in terms of the use of the cannabis plant by adults, in private places. This brought relief to many users as this was criminalized in 1922, which meant that those found in the possession and use of the plant would be found to have transgressed and thus may end up with a criminal sentence behind their names. Cannabinoids are said to offer an array of therapeutic benefits by

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mimicking compounds that are naturally produced in our Endocannabinoids system (ECS) which activate to maintain internal stability, health and wellness (homeostasis). The ruling by the Constitutional Court enabled commercial opportunities and commence investment initiatives to enable consumers to access the product, that has been produced within given standards as regulated by SAPHRA, and other regulatory authorities in South Africa. Thus, patients could then freely obtain prescriptions from authorized medical practitioners for medicinal use, with fear of arrest and or selfincrimination. To illustrate how government is responding to the changing landscape, Gauteng positioned the use of cannabis for medicinal purposes. The Premier of Gauteng mentioned in his SOPA, State of the Province Address, of the Gauteng Provincial Legislature, in February 2021, that the province has the industrial infrastructure to process cannabis for medicinal purposes. One such company that has taken advantage of such developments nationally, in the cannabis industry is CANNAFRICA, the company started initiatives within three or so

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months after the ruling by the constitutional court to be on a growth trajectory wherein it has already sold 42 licenses to franchisees to boost its distribution network, thus far. CANNAFRICA prides itself as the industry leader in the cannabis industry. The company states that “Produced in stateof-the-art, EU GMP compliant facilities, we have tenaciously crafted ourselves to become the industry’s beacon in a largely unregulated sector. With the pioneering spirit of Labat Healthcare, we stand, boldly, as the African Cannabis Lifestyle brand of Labat Healthcare.” The company has positioned the use of cannabis as a lifestyle product. CANNAFRICA assures its customers that its products are verified and tested, including being in compliance with set SAPHRA standards and regulations. Elevation Business Magazine took some time to engage and have a conversation with the company’s CEO, Mr Herschel Maasdorp, to intimately understand their business model, history and what is in store for the market. Elevation Business Magazine (EBM): Briefly share the history of- and growth of

CANNA F RIC A

Herschel Maasdorp

CANNAFRICA and what’s in store for the business in the immediate and long term? Herschel Maasdorp (HM): CANNAFRICA was started immediately after the constitutional court ruling in September 2018. Mere months after the constitutional court ruling, by December 2018 we had a well-crafted value proposition that we could take to market. We understood that there will be commercial opportunities for companies to grow cannabis for export. Whilst we understood that the court ruling was for private adult use, we built a value proposition around CANNAFRICA as a lifestyle brand. By January 2020 we were concluding negotiations with the JSE listed company, Labat Africa. It is a global approach as part of the growth trajectory and platform for companies that play in the cannabis economy. It is proven successful if one is linked to a company on the stock exchange. It gives the business legitimacy, credibility and can give assurance for compliance to corporate governance, giving investors confidence that they are not involved with illicit activities. What became clear is that Health is the new Wealth. Wellness and self-care have become a significant lifestyle priority. This became apparent during the coronavirus pandemic, wherein we observed positive performance of entities with cannabis induced products in terms of profitability. In 2020, we launched three stores in Sandton, Hartbeespoort Dam, and in Cape Town. The fourth store opened in January 2021, and we will be opening additional 38 stores in the coming months taking our rollout into 2023. As part of our product architecture, we have existing products in market and innovation in the pipeline which is based on consumer needstates. EBM: What has been the reception on the JSE since Labat Africa’s investment in CANNAFRICA? HM: It is illegal to trade with cannabis in South Africa and when a company is issued with a license/permit to cultivate cannabis, it is exclusively for the export market. Labat Healthcare, the holding company of CANNAFRICA, successfully concluded an off-take agreement for the supply of cannabis flower to the European market. CANNAFRICA is a data driven company. We observe, analyse data and information which we use in growing our own markets. Our

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approach to business has meant that we were swiftly on par with global standards. In so far as this is concerned, we were awarded two global awards in both 2020 and 2021 respectively. EBM: How has the business been faring during the pandemic? HM: During the pandemic we collectively decided to make use of the opportunity to craft a fail-proof retail strategy for our CANNAFRICA Lifestyle brand. Rolling out the architecture of a data driven business retail model meant that we could dive deep, analysing the performance of the global cannabis retail market, consumer behaviour, comparative retail trajectories and product performance in the largest legal cannabis markets in the world. We have received both local and global recognition of our commercial offering through international brand awards, positive market response and the rapid onboarding of retail partners. EBM: What are some of the latest developments in CANNAFRICA? HM: We have observed month on month and quarter on quarter performance analytics guiding our decisions as we rollout our strategy. With the implementation of our omni channel marketing strategy, including e-commerce, Search Engine Optimisation (SEO) and Paid Per Click (PPC), we have reached over ten million potential customers. The data collected from our activity was a clear indicator that we needed to increase and intensify our production capacity and inventory to meet the anticipated demand. We have made new acquisitions and increased our share of voice in market. Based on research reports from Kantar Millward Brown and other key research houses, it is clear that the pandemic has not only changed consumers value systems but their shopping behaviour 116

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as well. In addition, we have analysed our own consumer data to better understand their evolving patterns. This data clearly indicated that health and wellness are moving into the zone of biotech where choices of delivery systems (how medicines are consumed), bio-availability and efficacy are paramount. EBM: What are some of the legal challenges/ regulatory frameworks you are dealing with and what would you like to see happening in this space to facilitate sustainable growth for the industry? HM: We believe it is critical to adhere to the current regulatory framework. We want our customers to know that when they buy CANNAFRICA, these products are produced in accordance with the most stringent standards; that our products are safe; that our products are effective. We believe that SAPHRA is doing well in relation to the regulatory framework. It is an evolving space and over time we will have a regulatory framework that will become more enabling for business and commercial activity. It must also be understood that the regulatory framework is not only about medicines, but we have to consider the enablers and other related legislation such as agriculture, correctional services, safety, security, trade and industry, among other. The macro legislative requirements for cannabis regulation is still not complete. Government and other stakeholders are currently conducting consultative forums to develop a master plan for the cannabis industry. Ultimately, our vision is for more South Africans to be able to experience the immune-promoting qualities of CBD, thus realising the full wellness potential of the Cannabis plant. n

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SUPER F E A T UR E

Technology in education: Part of an evolution or a stimulusresponse to the pandemic?

The new normal has provided more opportunities than ever before to embrace technology in our quest to achieve successful outcomes. The education sector might have lagged with this but is catching up swiftly. By Kevin Lazarus

Kevin Lazarus is the Sales Director at SPM Publishers International.

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n 2011, the German government introduced the concept of the 4th Industrial Revolution (4IR) in a strategy that promotes manufacturing computerisation. It’s been a hot topic amongst world leaders since then, especially in the World Economic Forum, where it has been studied, discussed and debated extensively over the last five years. The crux of 4IR is simple: Just like humans lost their jobs to machines in previous industrial revolutions, technological advancement is once again going to drive

SU PER F EA TURE

a shift in the world of work – this time, thanks to advances in artificial intelligence (AI). We’ve already seen a change in many sectors, with robots and algorithms outperforming human capability in the workplace. Sadly, we haven’t seen much of this in the education sector. This is because traditional educational institutions and learning methods conveniently stuck to conventional approaches.

Resistance to change There were many discussions about changing “production line” education to personalise education. And there were some institutions, thought leaders and academics who embraced educational technology (EdTech), driving an evolution in education. However, the teacher’s fear of being replaced by technology was more of a concern than the enhancement of teaching through technology, and many institutions

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The teacher’s fear of being replaced by technology was more of a concern than the enhancement of teaching through technology stuck to conventional methods and mediums. And then came the pandemic, which left many institutions and academics with no other choice but to join the bandwagon. Traditional face-to-face teaching institutions had to urgently and drastically rethink their approach to the concept of distance learning. Those who embraced EdTech before the pandemic had a competitive advantage. They didn’t have to scramble like their more conventional counterparts and had room to explore a hybrid approach to education, now known as Blended Learning. This was driven by a need for a personalised learning experience. Making learning more digestible The rise of Blended Learning can be seen as a win for all educators. It enhances face to face and distance learning and does not replace the teacher or lecturer. One of the innovations in this learning style is nano learning, where large chunks of learning material are now broken into bite-sized pieces of educational material, which enables the learner to focus more and digest. Blended Learning gave fruition to several learning tools and platforms 120

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that encourage creativity and exploration. It promotes a world of information where the learning experience goes beyond the physical classroom. In many cases, it creates an opportunity for diverse multinational virtual learning and collaboration. Learners in this new wave of education have the opportunity to take ownership of their learning experience, providing endless possibilities and encouragement to succeed in their studies. They still learn specific content to progress but can now choose how they would like to do it. For example, gamification is on the rise, and educators use videos coupled with various Learning Management Systems (LMS) to transfer knowledge. More support for parents, too. As we progressed into this new era of education, we learned that educational material could be entertaining. It does not have to be as dull as some of us experienced in the past. The days of parents forcing their children to learn or having to reacquaint themselves with longforgotten subjects as they struggle to assist with homework might be a

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thing of the past. This is because Blended Learning provides parents with an opportunity to brush up their knowledge in advance or use the learning tools at their disposal to aid them in teaching concepts. Students can also go back to lessons they might have missed or rewatch the same class to refresh their memory. It’s important to note that it’s not just a one-way street. Forward-thinking Learning Management Systems allow students to engage with their teacher or lecturer and colleagues in the comfort of their homes, at their own pace. Quality learning and teaching remain critical throughout the process. Addressing special needs Technological advancement in education also provides an opportunity to empower students with learning difficulties. According to Collaborative for Academic, Social, and Emotional Learning (CASEL), successes in AI and EdTech have helped 122

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Education has evolved into a service, and the learner is the recipient or consumer of this service.

students who experience Social and Emotional Learning (SEL) challenges to improve their grades up to 11 per cent. And there is no short supply of helpful tools. Learning on demand has become just like any other commodity in the market. Education has evolved into a service, and the learner is the recipient or consumer of this service. For the first time, education serves the student’s needs beyond delivering content by adapting to their needs. Conventional production learning, as we knew it, will soon end. The emergence of collaborative multi-interdisciplinary learning has started, and this will prepare the future workforce for 4IR. With the rise of 4IR, EdTech tools teach and prepare us to adapt to the world of Artificial Intelligence (AI). Embracing AI through investment Before the pandemic, the Online Education Market & Global Forecast projected that international investment in online education would reach $350 Billion by 2025. It is fair to say that we can now expect much more investment in

this sector, from investment in language apps to virtual tutoring, video conferencing tools, to online learning software. Working alongside AI to improve the quality of life is the next inevitable evolution of humankind. A simple scenario illustrates this point: When a robot gets introduced in the manufacturing plant to replace the human who screwed the cap on toothpaste tubes, it will result in job loss, right? But what if the human was was trained to maintain and repair the robot when it malfunctions? We should remember that the pandemic did not create the technology conventional institutions are now adapting to. It merely gave us a new perspective on being more efficient and conscious of our lives. More than ever before, the education sector is harnessing technology to achieve successful outcomes. Within this context, one can argue the pandemic merely brought forward what will eventually be. Whether we use technology to entertain, inform, transform or educate, we cannot deny that we need to embrace and emerge ourselves in it. And Blended Learning offers educators and students the ideal opportunity to do this. n Elevation Business Magazine

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BUSINESS/MARKETS

Breathing New Life Into Unprecedented Times By Aiden Matthews

ne of the core air gasses- Oxygen, needed for the survival of all living things, also used as supplementation from medical grade form when disease process strikes us, and we are unable to get sufficient oxygenation via gaseous exchange physiologically to major organs in our body via our blood stream to sustain life and reverse possible organ damage or complete failure. It is alarming to think that in today’s times of medical technology and advancements globally and locally that there is an increased demand and lack of supply of Medical grade Oxygen to those who are needing it most which could be the difference between life and death.

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An unforeseen circumstance amid a global crisis. Across most of Africa, Asia and the Latin Americas, there is a considerable lack of medical grade oxygen and this circumstance is leaving doctors, emergency and other medical personnel on the front line of the COPVID-19 pandemic having to make the difficult decisions between life and death in relation to increased demand for supplemental medical oxygen and the lack consistent and even going so far as saying non-existent supply in some areas in the world of this all-important lifesaving and life sustaining gas. According to Bloomberg reports, a single Covid-19 patient can use as many as 8-10 3000 litre capacity oxygen cylinders a day. The South African arm of Air Liquide stated that oxygen consumption from hospitals has ‘increased by three to four times with some regions having experienced a more than six-fold increase, and some specific major urban hospitals have experienced an as much as 10-fold increase in consumption” compared to what it was before the pandemic hit our shores. 128

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Meeting the demand and trying to Breathe New Life into COVID-19

Air Liquide SA, Afrox Healthcare Ltd. and Air Products are boosting deliveries to hospitals, with some now taking place daily rather than weekly. Air Liquide mainly supplies private hospitals, while Afrox supplies mostly government facilities. Air Liquide and Afrox have said in response to queries that they have also issued warning notices to their industrial customers, stating that supply may be interrupted. As Afrox also supplies non-medical grade oxygen into industry and various industrial applications, they have the ability to divert the supply from these sectors and refine the product to medical-grade standard. According to comment by Netcare Groups General Manager of Procurement Services Anita Hamilton, she had said “Our groups were able to meet demand, and we can only comment on the local scenario”. Globally it has been determined that an immediate funding need of US$90 million to address key challenges in oxygen access and delivery in up to 20 countries, including Malawi, Nigeria and Afghanistan. This first set of countries has been identified based on assessments coordinated by WHO’s Health Emergencies Programme, in order to match in-country need with potential Elevation Business Magazine

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The South African-made OxERA device. Picture source: Umoya/Facebook

financing, such as through the World Bank and the Global Fund. Tedros Adhanom Ghebreyesus (head of the World Health Organisation) said the WHO has purchased 14,000 oxygen concentrators that will be sent to 120 countries in the coming weeks and have identified another 170,000 concentrators, valued at $100 million, that will be available in the next few months. The urgent, short-term requirements of additional countries will be measured and costed in the coming weeks, with the overall funding need over the next 12 months estimated by the WHO to be US$1.6 billion. Johns Hopkins Centre for Health Security had on the 26 January 2021 issued a white paper on potential solutions that could assist in the COVID-19 oxygen crises being faced. The following below would solve the issues being faced but minimise the impact the crisis would have on the demand for medical grade oxygen. • Oxygen concentrators are being used as much as possible in place of oxygen cylinders. These draw oxygen from the air and do not need oxygen resupply or flow regulators. • Some providers are splitting the tubing from 1 concentrator to supply 2 patients at once; conversely, sometimes 2 concentrators are being used on a single patient to provide higher oxygen concentrations than a single concentrator can provide. • Oxygen is being conserved by lowering the saturation threshold for deemed adequate patient oxygenation. • Large H oxygen cylinders are being fitted with manifolds to service multiple patients simultaneously.

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Locally in South Africa, there has been a recent breakthrough and development that is being dubbed as a game changer in the face of battling the need for oxygen and the shortage thereof, it is a new device being called Oxygen-Efficient Respiratory Aid or OxERA device in short. This is an all-in-one device that uses an oxygen accumulator bag, an anaesthetic mask and an adjustable mechanical PEEP (Positive End Expiratory Pressure) which have all been individually combined to develop this simple to use, cost-effective and oxygen efficient device. “The OxERA effectively bridges the gap between current standard oxygen therapy via face masks and ICU-based noninvasive or mechanical ventilation, while requiring no more oxygen flow than a standard face mask,” the Umoya-Gabler Consortium said. The OxERA device was developed by a group of East London-based volunteers that includes doctors, engineers and entrepreneurs and has now been approved by the South African Health Products Regulatory Authority for emergency Covid-19 use. Hundreds of OxERAs have already been distributed to 25 hospitals around the country and several devices have also been distributed to Zimbabwe, the Democratic Republic of Congo and the Central African Republic. “We can produce over 15,000 units a week, so capacity is not an issue,” “ “Regarding oxygen consumption, the OxERA is in the low flow category of 10 – 15 l/min. This is similar to the standard nasal cannula and rebreather mask delivery oxygen systems.” ” In order to be effective, the standard high flow oxygen therapy systems like HFNC and CPAP use oxygen flows around 50l/min and sometimes even more than that.” What makes the OxERA device so unique is that it offers high FIO2’s of 99-100% with PEEP up to 15 cmH2O in the exhalation breathing cycle, but with low oxygen flows.” “We have calculated that hospitals will be saving about 960 litres of oxygen in a 24hour day when compared with high flow oxygen therapy, which amounts to more than a R900 per day oxygen saving.” said Gabler Medical managing director Reiner Gabler regarding queries around Oxygen consumption and comparison in cost effectiveness. n

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TECHN OL OGY

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TECHNOL OGY

Privacy, secrecy and the PoPI Act The recent data breach at Microsoft once again reminded us that the convenience of connectivity is accompanied by significant risks. Data privacy legislation across the globe aims to mitigate this. Carien von Backstrom reports.

n January this year, Microsoft experienced a major data breach which caused a global cybersecurity crisis. Hackers infiltrated almost 250 000 servers, affecting the information of countless small to medium-sized businesses and even heavy-weight institutions like the European Banking Authority. As soon as the breach was detected, Microsoft immediately released updates to patch the exploits and prevent future vulnerabilities. This remedy could do nothing to solve possible backdoors left by the attackers, which were a hidden open invitation to more future attacks. The Microsoft security breach of 2021 once again reminded us that the digital age has its fair share of security and vulnerability concerns. But what is one to do? Reverting to the stone age might be a bit extreme. Sharpening your data security and privacy systems is a more hands-on solution.

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TIPS FOR TECHNIQUES PoPI IN A NUTSHELL The PoPI Act focuses on collecting, storage, utilising, and disposal of an individual’s personal information. It provides clear guidance to companies on exactly how these matters should be handled. It is governed by eight principles: Lawful collection: Information may only be obtained in a lawful, consented manner from an individual; A clear motivation for data collection: There must be a specific reason that each and every piece of information is required and collected. No more “just because” reasoning will be allowed; Clear scope for information required: What does the company want to do with your information? For example, if they want to collect driver’s license information to see how many Code 08 drivers there are, they may only do that. They cannot later decide to check other details. Quality control: The person collecting the information has a responsibility to ensure reasonable quality control. Information collected should be appropriate and relevant; Ongoing transparency: When data is processed, the affected party, as well as the Information Regulator, has to be kept informed; Active involvement: When an entity collects information about a specific person, the person in question must have active involvement in the process. The person whose data is being collected must have the opportunity to amend and update information as and when required; and Accountability: Accountability rests on the shoulders of the person responsible for processing the information. Every reasonable step aimed at data protection and security should be followed. The required protocol following a data breach When a data breach is detected, companies are obliged to provide the following information to the Information Regulator: ● What type of breach occurred; ● How exactly did it happen; ● Who are the affected parties; ● What steps will be taken to inform the identified parties of the breach; ● What mitigating steps are in place; and ● What risk management factors are in place to ensure that future data breaches do not happen again.

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Defining data privacy Data privacy is concerned with the collection, use, storage and eventual disposal of personal information. With the rise of data privacy laws, companies are required to clearly define what the purpose is for them to want to have access to personal information What can then be defined as data? Most of us have had to “accept cookies” when browsing through a website. Very few, if any of us ever read the privacy policies connected to these. The purpose of all this is quite simple. The cookies work to collect valuable information about what is browsed on the site, data collected, and authenticate a user before sensitive data is released. The rollout of data privacy laws In 2018, Europe took its first step towards ensuring the protection of personal data and privacy of EU citizens with the General Data Protection Regulation. It sets guidelines for collecting and processing personal information from individuals, companies and organisations based in Europe and EU member states. Heavy fines and even imprisonment is on the cards for companies who fail to comply and fall victim to data breaches. Following the steps of Europe, South Africa introduced the PoPI Act or Protection of Personal Information Act. Like the GDPR, the PoPI Act governs when and how organisations collect, use, store, delete and otherwise handle personal information. To give effect to this Act, an Information Regulator had to be established, ensuring compliance to related local and international legislation. It actions steps to non-compliance and amendments to legislation, as and when required. In the past, data privacy was not an important focus area of many business types. But considering there is a 12-month grace period since it came into effect on 1 July 2020, time is running out to comply.

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REFERENCES: ● CPO Magazine. 9 Security Hacks for Protecting Remote Workers. (Online). https://www.cpomagazine.com/ cyber-security/9-security-hacks-for-protecting-remoteworkers/. [Accessed 23 March 2021]. ● Hogan Lovells. South Africa Data Protection Regulations Expected to Take Effect in 2019. (Online). https://www.engage.hoganlovells.com/ knowledgeservices/news/south-africa-data-protectionregulations-expected-to-take-effect-in-2019. [Accessed 18 March 2021]. ● IAPP. After 7-year wait, South Africa’s Data Protection Act enters into force. (Online). https://iapp.org/news/a/ after-a-7-year-wait-south-africas-data-protection-actenters-into-force/#:~:text=The%20act%20aims%20 to%20promote,in%20the%20Bill%20of%20Rights.&text=It%20applies%20to%20any%20organization,for%20 138

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personal%20or%20household%20purposes. [Accessed 18 March 2021]. ● Kaspersky. What is VPN? How it Works. Types of VPN. (Online). https://www.kaspersky.com/resource-center/ definitions/what-is-a-vpn. [Accessed 18 March 2021]. ● Michalsons. Data Privacy or Data Protection in South Africa. (Online). https://www.michalsons.com/blog/ data-privacy-in-south-africa/150. [Accessed 18 March 2021]. ● One Trust Data Guidance. South Africa – Data Protection Overview. (Online). https://www. dataguidance.com/notes/south-africa-data-protectionoverview. [Accessed 18 March 2021]. ● Privacy Policies. South Africa’s PoPI Act. (Online). https://www.privacypolicies.com/blog/PoPI-act/. [Accessed 18 March 2021]. ● Werksmans Attorneys. Data Protection and Privacy

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Photo by Kristina Flour

IMPROVING DATA SECURITY IN YOUR BUSINESS

(Online). https://www.werksmans.com/practices/dataprivacy/ [Accessed 18 March 2021]. ● Wikipedia. HTTP cookie. (Online). https:// en.m.wikipedia.org/wiki/HTTP_cookie. [Accessed 23 March 2021]. ● Wikipedia. 2021 Microsoft Exchange Server data breach. (Online). https://en.m.wikipedia.org/wiki/2021_ Microsoft_Exchange_Server_data_breach. [Accessed 23 March 2021]. ● Workpool. What is PoPI? The Protection of Personal Information (PoPI) Act Explained. (Online). https:// www.workpool.co/featured/PoPI#:`:text=In%20 simple%20terms%2C%20the%20purpose,personal%20 information%20in%20any%20way. [Accessed 18 March 2021]. n

Seeing as remote working might be here to stay, how can security be improved to protect the data in your business? Without having to go into technical detail, there are some basic things that companies and individuals can do to stay compliant: ● Educate your team - it is always sensible to keep your employees informed about the latest risk factors related to the digital environment. It also helps when employees know how to handle data breaches. ● Designated systems - Depending on work functions and data sensitivity, using a designated computer system might be wise. For example, if you work in the financial sector, you would want your employees and co-workers to rather utilise office equipment instead of personal computers. ● Access control - Extra system verification is never a bad thing. The harder it is to access a working system, the better. Every security measure provides one more barrier to unauthorised attacks. ● Backups - Incorporate a proper backup system. Nothing is worse than a system crash and then realising your last backup was six months ago. Partial backups can be done regularly, and complete backups can be assigned every month. These backups also need to be stored safely and securely, either off-site or remotely. ● Be proactive - What happens when a data breach occurs? Do your employees know what will happen and what needs to be done? This can be incorporated with education and awareness. Teach everyone the importance of data security and privacy. Teach them what steps to follow when a breach happens. Your company downtime will be cut in half as your employees will not experience a “deer in the headlights’’ situation. ● Use a VPN (Virtual Private Network) - Quite a few companies have a two-tier approach to system access. They tend to have an “open system”, which is accessible more easily. The “closed system” is only accessible via a VPN, which creates a secure data connection for a user and disguises the user’s identity and encrypts the data in real-time. It also hides your IP address and helps to encrypt data for safer security and data transfer. Your sent and received data, as well as the websites visited, are hidden from any unwanted third parties trying to access it.

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Elevation Business Magazine - Issue 1 2021

Articles inside

The recent data breach at Microsoft

TECHNOLOGY IN EDUCATION The new normal has provided more opportunites than ever before

The use of cannabis for various purposes has been happening for centuries