Business Day World Food Day: October 2020 by SundayTimesZA

16 October 2020

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HOW FOOD SECURE ARE WE? THE ROLE OF TECHNOLOGY | THE FOOD TRACEABILITY CONUNDRUM

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HOW FOOD SECURE ARE WE?

n this issue of World Food Day (16 October) we celebrate 41 years of the United Nation’s (UN) commitment to a global food programme to eradicate hunger. The UN shares that globally currently more than 815 million people do not have enough to eat and that about 155 million children under the age of five – 23 per cent – are chronically malnourished and one in two infant deaths worldwide is caused by hunger. Given South Africa’s extreme poverty levels and inequality, just how food insecure are we? We tackle this issue and talk to the realities of our food security and the innovations being undertaken to address this.

Raina Julies

Contents

Is South Africa meeting the UN’s Sustainable Development Goal 2?

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IS SOUTH AFRICA HUNGRY?

SUPPORTING OUR FOOD HEROES The agricultural sector and food traceability conundrum

MANAGEMENT Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager Magazines: Jocelyne Bayer COPYRIGHT: No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. World Food Day is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

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EDI T ORI A L COMMEN T

FRANCHISING

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A DV ER T ORI A L

AGRICULTURE: A TRUE OPPORTUNITY TO REIMAGINE AFRICAN VALUE CHAINS Absa shares its views on agri-megatrends, what food security means for South Africa and Africa and what it believes its role is in finding solutions to the challenges

s the pandemic continues to spread, the continued functioning of regional and national food supply chains is vital to avoid a food security crisis in countries dependent on agriculture. This is true in terms of both nutrition and livelihoods. This is the warning from Professors Simon Roberts and Jason Bell from the University of Johannesburg, writing in The Conversation Africa. Not to be ignored, it also highlights the strategic importance of investing in the African agriculture and agro-processing sectors. With the COVID-19 pandemic, the world’s attention has been focused on agriculture and agricultural food chains and the impact of lack of food security on emerging markets such as South Africa and the broader African continent. Many traditional assumptions and beliefs have been turned on their heads in 2020. We have seen export restrictions on staples, the inability of people to travel, logistics constraints in the food chain brought about by lockdowns, and severe economic distress. In many developed countries, supermarket shelves were empty of essential goods because the food value chain could not cope with the sudden disruption.

COVID-19 and a renewed focus on agriculture The dramatic reaction to COVID-19 has had the following consequences for almost all countries. • economic growth potential has been structurally damaged • populations have become poorer and economic safety nets in many developing countries are sorely lacking due to fiscal constraints • currency depreciation has a negative impact on countries that have to import staple foods – a particular challenge for many countries in Africa

Stakeholders throughout the agriculture value chain are now having long overdue conversations around how to create a more sustainable food security ecosystem. • food value chains that have been disrupted, due to internal measures and external trade reactions, create a situation where there may not be sufficient food for populations. Absa’s view is that the COVID-19 pandemic will lead to the elevation of agriculture as a priority investment sector for the following reasons. • agriculture is a sector wherein a proportionally large portion of Africa’s population is engaged, formally and informally • while some sectors will see structural shortand medium-term decline, the demand for food is rising. This is leading to a renewed realisation that agriculture could be an engine for economic growth, as well as much-needed investment • Africa holds the most undeveloped agricultural land, which offers significant potential for investors • many African governments are seeing the value of agriculture and are liberalising and

commercialising their agricultural sectors (some faster than others).

WHAT DOES THIS MEAN FOR AFRICA? The above highlights that African countries must increase investment in agriculture to increase production, lessen reliance on imports, increase employment in agriculture, and establish industries aimed at export and import substitution. Some basic levers can be used to achieve this: • market-friendly trade and industrial policies (which, fortunately, some countries are adopting) • “crowding in” of investment from the private sector via policy reform, tax incentives, policy and regulatory certainty • investment in infrastructure required in the food value chain. It is a dichotomy

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A DV ER T ORI A L

DID YOU KNOW?

A staggering three billion people or more cannot afford a healthy diet. In subSaharan Africa and southern Asia, this is the case for 57 percent of the population. Source: Unicef’s The State of Food Security and Nutrition in the World 2020 report

African countries must increase investment in agriculture to increase production, lessen reliance on imports, increase employment in agriculture, and establish industries aimed at export and import substitution.

agriculture employs about 900 000 people directly, most notably in rural areas where few other employment opportunities exist • although the direct GDP contribution is about 3 per cent, Absa estimate that indirect linkages such as input suppliers, manufacturing of machinery and off takers, brings the sector contribution closer to 13 per cent of GDP. The recent quarterly growth performance for second quarter of 2020 of 15 per cent (year on year) has been stellar. The agricultural balance of trade is positive and, during this period, we have seen very strong export performance, bringing in much-needed foreign exchange into the country. Emerging market currencies have been under pressure in 2020; this can be a significant driver of foreign earnings for countries that have invested in their agriculture value chains. A depreciated currency also makes exported goods more competitive on international markets.

AGRi-MEGATRENDS BODE WELL FOR AFRICA

The African continent can benefit significantly from several of the megatrends playing out in the agri sector. According to an estimate by The World Bank, the world population will increase to nine billion people by 2050. To feed this population, areas under plantation will need to increase. With Africa having 60 per cent of the arable land available for Almost 690 million people expansion, the continent will be a around the world went natural beneficiary of this megatrend. hungry in 2019. And, possibly Despite the abundance of available another 132 million may go land, Africa remains a net importer hungry in 2020 due to the of food; this provides an attractive impact of COVID-19. investment opportunity. Source: Unicef’s The State of Food Security and Nutrition in In richer nations, including Europe the World 2020 report and the USA, the demand for fresh fruit has increased dramatically with strong price effects. As nations become more prosperous and stronger middle-classes that although many African countries emerge, there is a noticeable change in diet have excellent production potential, poor from carbohydrates to more protein, changing infrastructure such as road and rail transport, the type and volumes of food that will need to harbours and electricity act as inhibitors. be produced. These present niche opportunities Hard infrastructure investment should be for fruit producers in Africa to supply global prioritised to help drive the sector. marketplaces. In addition, a growing global trend positions ECONOMIC CONTRIBUTION healthy eating and food as a form of medicine. It is important to understand the economic People with underlying conditions such as contribution of agriculture and how it touches hypertension and diabetes can manage these many parts of the economy. through healthy diet and living – a trend that is • agriculture is one of very few sectors that expected to continue. has increased employment. In South Africa,

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FAST FACT

Forward-thinking entrepreneurs and innovators are well positioned to capitalise on a number of megatrends that will likely drive investment returns in this sector.

The rise of the biofuels sector presents an interesting dynamic between food security and energy requirements. Certain commodities are used to produce ethanol for biofuel and this is creating competition for food and feed supplies.

ABSA AS A PARTNER OF CHOICE FOR AGRICULTURE AND AGRO-PROCESSING PROJECTS Absa – the largest agricultural bank in SA – has a material presence outside South Africa, which it aims to expand in the countries where it conducts business. During a recent strategic review, Absa reaffirmed its commitment to the agricultural sector based on the significant investment opportunities it offers across the continent. The total appetite in the sector is around R100bn, which leaves sufficient scope to get involved in new large-scale projects. Typical banking services and products include: • long- and short-term funding for capex and working capital • transactional banking services • risk mitigation – foreign exchange hedging, interest rate hedging, trade finance and documentary trade • agriculture commodity finance is becoming increasingly important for Africa as markets develop. With integrated global supply chains, it is important to be able to work with teams who understand how to develop financial solutions that can fit your requirements. The Absa Commodity Finance team is a leading financier of projects in the grains market and also participates in the funding of other commodities such as raisins, cotton, coffee, sugar, dairy products, animal feed products, for both local and Pan-African markets. This year and the COVID-19 pandemic have structurally changed the way the world does business. And, the agriculture sector is one that will benefit. Forward-thinking entrepreneurs and innovators are well positioned to capitalise on a number of megatrends that will likely drive investment returns in this sector. We, as Absa, look forward to being your finance partner of choice in these endeavours.

Roux Wildenboer Sector Head: Agriculture, Corporate and Investment Banking, Absa Roux.Wildenboer@absa.africa Abrie Rautenbach Head: Agri Business Sector, Absa Abrie.Rautenbach@absa.africa

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F OOD SECURI T Y

Is South Africa hungry? Zero hunger is Goal 2 of the United Nations Sustainable Development Goals. How is South Africa shaping up in the meeting of this goal? GARETH GRIFFITHS reports

Just how food insecure is SA? While South Africa at a national level is food secure, according to Statistics SA’s Towards measuring the extent of food security in South Africa: An examination of hunger and food inadequacy survey published in 2019, the country is still food insecure at household level as not all households have access to adequate food. Almost 20 per cent of South African households had inadequate or severely inadequate access to food in 2017. Food Forward SA MD Andy du Plessis estimates that up to 30 million people may have become food insecure due to the challenges brought on by COVID-19 and lockdown. This number, he says, includes people who were already food insecure prior to lockdown. Dr Imtiaz Sooliman, founder of the Gift of the Givers Foundation, one of the largest disaster response, nongovernmental organisations of African origin on the African continent, has been

quoted as saying in various media interviews that since COVID-19 had hit our shores, he has seen “the worst amount of hunger in the 28 years of the Gift of the Givers”. Since 27 March, Gift of the Givers has handed out over 100 000 food parcels while funding 100 feeding centres. Each food parcel feeds a family of five for a month and each feeding centre supports between 800 and 1 200 people each day. Gift of the Givers’ food parcels are likely to have reached 500 000 people and the feeding schemes have reached 100 000 people. According to Oxfam, even before the pandemic hit, 13.7 million people living in South Africa did not have access to enough food because of high unemployment and poverty. Sooliman estimates that his organisation had spent about R50-million on food parcels and feeding schemes since the start of the national lockdown. The Gift of the Givers has delivered R100-million worth of supplies since 15 March.

“Since COVID-19 has hit our shores, we have seen the worst amount of hunger in the 28 years of the Gift of the Givers.” – Dr Imtiaz Sooliman

Ronelle Louwrens

THE ROLE OF TECHNOLOGY COVID-19 disrupted established food supply chains, making people re-evaluate how and where they get their food. “Opportunities opened up in (information) technology to connect people directly to producers with environmental and local economic benefits,” says Ronelle Louwrens, CEO of YehBaby Digital. Louwrens believes that there is no wealth without health, and technology can help to deliver healthy food to South Africa, save costs and deliver at speed by building effective networks. “Where previously online grocery shopping activity was minimal, the pandemic has accelerated e-commerce in SA, specifically towards food shopping through various retailer initiatives. “This happened in both the formal retail trade and informal trade, which plays a critical role in securing access to food for millions of South Africans. The pressure on food distribution systems supporting vulnerable communities has given rise to wonderful new tech initiatives that play a role in food security, like Yebo Fresh and the Yethu App,” she adds.

Dr Naudé Malan lecturing a senior class in developmental studies

Township and urban farming Urban agriculture aligns with deeper shifts towards circular, sustainable enterprises and markets, says Dr Naudé Malan, senior lecturer in development studies at the University of Johannesburg. Policies supporting them as enterprises can create new circular systems for socioeconomic development that enable the poor to create value among themselves. As the convenor of iIzindaba Zokudla (Conversations about Food) research project in the City of Johannesburg, he speaks from experience. “Food gardens create value in our townships. These gardens can transform township economies. They gross a minimum of R100 a day in sales and deliver

food at prices lower than supermarkets. This has deep human development and nutrition impacts,” he explains. Malan also believes that food gardens point to a new urban (circular) economy because they intersect with recycling, waste harvesting, water management and food retailing. Policies are clearly needed: “The lack of policy in this activity, however, pushes urban agriculture towards political patronage or to the ‘wild west’ of the informal sector,” Malan says. “Urban agriculture holds the key to the local economic development of our townships. New small-scale

“Food gardens create value in our townships. These gardens can transform township economies.” – Dr Naudé Malan agricultural knowledge, integrated with waste harvesting and light industrialisation, can stimulate new enterprise-based approaches to poverty relief. “Food can be exchanged with waste and then transformed into healthy soil and eventually fresh food. This is what our townships need,” he concludes. Dr Naudé Malan

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F OOD SECURI T Y

An agriculture community bank?

mature agricultural value chain is essential to meaningful agricultural development and increasing the number of commercial farmers, says Bennie van Rooy, the CEO of Grobank. “Simplistically, a value chain consists of the following components: land; infrastructure; access to water; and affordable funding. It needs support by grants or blended funding models plus skills/mentoring support and must also have access to markets. “This can’t be owned by a single party, and it is important that every part of the value chain is in place. The objective is to reduce production risk in the absence of farmers being able to pledge land as collateral,” he explains. Dr Sifiso Ntombela, chief economist of the National Agricultural Marketing Council, says that the agricultural value chain must be owned by and open to all players, ranging from small, medium and large farmers, agro-processors and dealers in the chain. “The small and medium players are critical for job creation, food security and rural development while large players are critical for foreign earnings and job creation,” he explains. Van Rooy sees an agricultural community bank as an essential link in the chain. For

“partnerships are a key element of the value chain.” – Bennie van Rooy, CEO, Grobank

development purposes, funding provided by an agricultural bank should be supplemented by (probably) government grants. This would reduce high funding costs and provide a level of loss-bearing capacity. “Partnerships are a key element in the chain contributing to the success of production and food security. The agricultural space is one space that is ideal for partnerships between the public sector, private sector and emerging farmers. “There are successful partnerships where emerging farmers become part of a commercial farm value chain, fulfilling the last two elements of the value chain,” concludes Van Rooy. “Partnerships are important, particularly in the food sector where climate risks and external shocks occur. For food security, partnerships like public-private partnerships are important in Dr Sifiso implementing food production Ntombela and processing across different areas of the country. They are powerful in ensuring food is available nationally, accessible and affordable to households, as well as regional markets,” says Ntombela.

FOOD SECURITY IN NUMBERS

54% 10 31 70% R61.5

The number of South Africa’s township microenterprises trading in food or drink.

MILLION TONNES

The amount of food waste in South Africa annually.

MILLION TONNES

The amount of food produced annually in South Africa.

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Of the 10 million tonnes of food wastage, fruits, vegetables and cereals account for 70 per cent of the wastage and loss, primarily throughout the food supply chain – from farm to fork.

BILLION

The value of South Africa’s food waste, according to the Council for Scientiﬁc and Industrial Research

Source: Department of Science and Innovation’s Centre of Excellence in Food Security within the National Research Foundation

FOOD FORWARD, THE WAY FORWARD FoodForward SA is part of a global movement focused on alleviating hunger and reducing environmental impact by diverting good quality edible surplus food. “FoodForward SA connects a world of excess to a world of need by recovering edible surplus food from farmers, manufacturers and retailers for redistribution to registered beneficiary organisations that serve the poor. We call this cost-effective model foodbanking.” – Andy du Plessis, MD, FoodForward SA.

Source: FoodForward SA.

HELP FOR SMALL FARMERS Sweden, through the Swedish International Development Cooperation Agency, has pledged funds to help avert a potential food crisis in some of the world’s most vulnerable rural communities in the wake of COVID-19. This was announced by the UNO International Fund for Agricultural Development (IFAD) in September. Among the proposals financed are two regionally-focused initiatives in Asia and sub-Saharan Africa that will provide emergency livelihood support through local farmers’ organisations, and eight countrylevel initiatives in Afghanistan, Bangladesh, Cambodia, Ethiopia, Nepal, Nigeria, Palestine and Rwanda. The programme was launched recently by IFAD’s Goodwill Ambassadors, the actor and humanitarian Idris Elba and the model and activist Sabrina Dhowre Elba. The activities that will be delivered include: providing seeds and fertiliser in time for the upcoming planting season; assisting with storage and market transport; supporting local banks to provide credit; and establishing digital platforms for information, training, banking and marketing services. Will SA be eligible in the next round?

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AGRICULT URE

Supporting our

food heroes

griculture is a significant GDP contributor, employing nearly a million people and exporting the majority of production – 52 per cent, according to Hamlet Hlomendlini, AgriBusiness enablement manager, Relationship Banking, Absa Retail and Business Bank. It’s also a significantly advanced industry, already incorporating some of the best mechanisation and digital practices from around the world. How did the sector fare during the worst of the pandemic? Designated as essential, it has continued operations throughout lockdown. The pandemic revealed some supply chain issues, yet we should be impressed at how well these were tackled, says Hlomendlini: “A weekly tracker was implemented identifying all the bottlenecks, and weekly meetings were held with different government departments to find solutions. One of the bottlenecks that was identified was the capacity at certain ports. Due

Hamlet Hlomendlini

A look at how the agricultural sector performed during the COVID-19 pandemic and what its future holds. By JAMES FRANCIS to infections, the ports were not operating at full capacity – capacity fluctuated depending on infections. The agility of the food system and the sound reasoning of regulators have ensured that the bottlenecks were resolved swiftly.” These responses show that we underestimate how modernised agriculture already is, driven to find efficiencies in SA’s harsh climate. The sector also matured digitally, and several online trading platforms began operating to match the sector’s new needs. Not that the sector is unscathed. It’s still unclear how social distancing affected agriculture’s seasonal employees and panic buying exposed problems around supply chain visibility. On a broad view, agriculture is hurt yet resilient, modern and ready to respond to a recovering economy.

“The agility of the food system and the sound reasoning of regulators have ensured that the bottlenecks were resolved swiftly.” – Hamlet Hlomendlini

UN’S WORLD FOOD DAY PROGRAMME CELEBRATES 41 YEARS Since 1979, the world has been celebrating agriculture through the UN World Food Day annually on 16 October. Launched by the United Nations’ Food and Agriculture Organisation (FAO) on the same day of that organisation’s founding in 1945, it has become a mainstay of global and regional food advocacy among NGOs and governments. The day highlights food insecurity and agriculture’s close relationship to national sustainability. Sustainability, poverty elimination and global warming have joined food security as themes for the day. World Food Day reminds us of the food value chain’s place in a modernising world. It echoes the FAO’s mission of physical food availability in the post-war era. South Africa is an active participant, and in 2014 designated October as Food Security Month. Though 2020’s theme is on food safety, local activities focus on food security. NGOs such as JAM and the Do More Foundation support the #2020challenge to help feed children and adults in need.

“Due to the countercyclical nature of agriculture, it is a good time to invest in agriculture. The latest GDP numbers show that agriculture is one of the few sectors showing growth and interest rates are at the lowest level in many years, but such an investment must fit into a strategic plan and must add to the productive value of the business,” concludes Hlomendlini.

The food traceability conundrum communities,” Foster says. “Producers trying to get into the industry struggle to get access to those resources. The combination of a shortage of resources and demanding regulations makes it very hard for a smallscale or new farmer to access commercial markets and clients.” SA agriculture is a significant exporter, which galvanises regulations around traceability. Large farms, food manufacturers and the state reduce their risks through certification. But though competent in production, the demanding requirements of safe food can push smaller farms out of the picture.

“The combination of a shortage of resources and demanding regulations makes it very hard for a small-scale or new farmer to access commercial markets and clients.” – Gwynne Foster 6

The Siyavuna Development farming programme

Developing local skills can support smallscale and new farmers and their communities. So-called agri-hubs, such as the SPAR Rural Hubs initiative and Siyavuna Development Centre, are helping cultivate skills and employment. Successful agri-communities not only offer jobs to farmworkers, but also to information administrators, accountants and technologists, among others, who serve an advanced modern agricultural sector.

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n paper, South Africa’s food traceability is excellent. But in practice, it’s a system that often pushes the little guy out of the picture. This situation isn’t due to conspiracy, explains traceability specialist Gwynne Foster. It’s the culmination of historical processes, international demands, food safety legislation, limited agro-community awareness of standards, and shortages of farming support professionals. “For example, there are too few technical extension services officers to adequately support smallholder farmers and rural

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Zandile Mposelwa, Head of External Relations at Kellogg’s South Africa.

Food security a top priority

for Kellogg’s

Kellogg’s Better Days™ programme plays a big part in addressing food insecurity and poverty

s poverty and unemployment in South Africa intensifi es due to the economic impact of COVID-19, leading global food company Kellogg’s is showing how private sector companies have a powerful role to play in enhancing the nation’s food security and reaching the most affected members of society. In 2014, Kellogg’s launched its global signature cause, Breakfasts For Better Days™ programme, now known as Better Days™ programme, which aims to create, 3 billion Better Days globally, by 2030 through initiatives that address issues related to food security and alleviating hunger. The initiative is particularly important for Kellogg’s South Africa considering that food insecurity remains one of the most

challenging issues facing the country; and has worsened during the COVID-19 pandemic. “We know that South Africa continues to struggle with food insecurity and COVID-19’s impact has been severe,” says Zandile Mposelwa, Head of External Relations at Kellogg’s South Africa. “With the number of people who have lost their jobs and incomes, the situation has become far worse. The economy is going to take a long time to recover, which is why it is particularly important for Kellogg’s to continue driving initiatives to reduce hunger and support efforts to address food insecurity.” In South Africa, through the Better Days™ programme, Kellogg’s provides 36 000 learners cereal and milk breakfast every school day. This initiative, in partnership

with the Department of Basic Education, is implemented at schools located in low socioeconomic communities affected by food insecurity. Since launching the programme in 2014, Kellogg’s has provided 15.5 million meals to children and communities in need. “It’s not just about the food; it’s about ensuring that these children have consistent access to nutrition, positively impacting their health, ability to learn, and general wellbeing. Often, this is the only meal that they will have for the day, so it is a commitment that is very close to our hearts,” says Mposelwa. Another important partnership has been formed with the Shoprite Group’s Act For Change CSI programme by donating food in support of the retailer’s nutrition progamme at Early Childhood Development (ECD) centres across South Africa. Kellogg also supports the Group’s hunger relief efforts through the Shoprite Mobile Soup Kitchens. Kellogg is on track to serve 3.5 million meals and create better days for South Africans by the end of this year. Mposelwa says that the company will expand its Better Days programme in 2021, aiming to donate 7 million meals. “During this pandemic, the company continues to work with its charity partners to offer food relief by donating R2.9-million in food and funding.” Mposelwa explains. The company’s efforts to address food security will continue beyond this pandemic as the company has taken a long-term view in terms of playing its part in alleviating hunger in South Africa. As part of its initiative to mark World Food Day in 2020, the company is excited to launch a partnership with the Kolisi Foundation that will see Kellogg’s donating food monthly to 4 000 disadvantaged households in Port Elizabeth and to the food kitchens, supported by the foundation, that serve lunch to 800 children and 100 elders in Cape Town. “All these initiatives are part of our commitment to drive growth through purpose. A purpose that addresses food security and alleviating hunger,” Mposelwa concludes.

www.kelloggs.co.za +27 11 233 6000

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SP ONS ORED F E AT URE

South Africa – losing billions,

marine resources decimated

PROFESSOR HENNIE VAN AS discusses the challenges involved in targeting fisheries crime

he multicrimes affecting the global fisheries sector range from illegal fishing, extraction of marine resources and human trafficking and forced labour to fraud, forgery, corruption, money laundering and tax and customs evasion. This is organised crime and South African fisheries are a prime target. Our country is losing billions of rand in revenue and our national marine resources are being decimated. Treasury and South African Revenue Services (SARS) need to be more involved and our law enforcement must treat incidents as organised crime and respond accordingly, imposing the associated severe penalties. Much of the illegal global multicrime activity linked with fishing takes place off the coast of South Africa, Namibia, and the east coast of Africa. The fishing vessels don’t need to enter our harbours, they make their transhipments offshore. It’s all happening in front of us; we can actually see these vessels poaching in our Exclusive Economic Zone (EEZ), but we don’t have the capacity to deal with it. Why are our marine resources not being protected in the same way that we protect our gold or work to protect our rhinos? While marine living resources are strictly regulated by law, the implementation, administration and enforcement fall woefully short. There are far too few patrol vessels and there are about 230 fi sheries control officers covering South Africa’s entire 2 800km of coastline. It is frustrating that government is slow to respond and the general feeling is that there is a lack of political will at the highest levels of

to as Illegal, Unreported and Unregulated (IUU) fishing – have been dealt with as a fisheries management issue, resulting in less severe penalties that are not having a deterrent effect. Up until recently, the understaffed South African Police Service (SAPS) did not treat fisheries crimes as a priority crime. This is slowly changing and there are indications that the change was influenced, to a degree, by research that FishFORCE has published in journals and popular publications and shared at conferences. Overall, a considerable upscaling of governance and management of our marine living resources is required as corruption is everywhere. Through Operation Phakisa, we are collaborating with the Department of Environment, Forestry and Fisheries, SAPS, the Defence Force, SARS, National FishFORCE is helping to build fisheries law enforcement capacity Prosecuting Authority and the along Africa’s east coast. Department of Home Affairs to treat fisheries crime as organised crime and to deal harshly with government to implement the corrupt officials. strategies required. Government Time is not on our side and far should acknowledge the value of more stringent laws, combined our marine living resources with specialised policing and for the economy and communities intelligence gathering for fisheries and as food sources and allocate organised crime and harsh the commensurate protection. Prof Hennie van As sentences, need to be prioritised at More fisheries control officers a national and international level. should be appointed and properly trained; the number of fisheries patrol boats should be substantially increased; the navy should be more active in our EEZ and have fisheries officers on board; and successful convictions should be significantly increased. To date, many fisheries crimes – officially referred

TARGETING ORGANISED CRIME IN SA’S OCEANS FishFORCE – Africa’s first Fisheries Law

Enforcement Academy – is headed up by Professor Hennie van As, an admitted advocate, public law professor, director of the Centre for Law in Action (CLA), and the director of FishFORCE. FishFORCE is situated in the Centre for Law in Action in the Faculty of Law at Nelson Mandela University. It was established in 2016 to improve knowledge and intelligence-led investigations and prosecutions of criminals engaged in

transnational organised fisheries crime in South Africa, the continent and globally. FishFORCE is strongly advocating for fisheries crimes to be addressed as a priority transnational crime and prosecuted as organised crime and racketeering under the Prevention of Organised Crime Act, with severe penalties of 25 years to life. It is encouraging that some of South Africa’s

courts are responding to the seriousness of these crimes. Three major abalone (perlemoen) racketeering cases in South Africa – State v Blignaut, State v Miller, and State v Brown – have been prosecuted as organised crime, with sentences of 18 to 20 years delivered in March 2018 and March 2019.

FishFORCE is strongly advocating for fisheries crimes to be addressed as a priority transnational crime and prosecuted as organised crime and racketeering.

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A fisheries Law Enforcement vessel investigates blast fishing in Tanzania.

NEW LEGAL DEVELOPMENTS

Illegal nets and fish caught in protected area

IN COMBATING FISHERIES CRIME

FishFORCE has been assisting various roleplayers to become more effective crime-busters

everal new developments aimed at combating perlemoen/abalone poaching have evolved from research conducted by FishFORCE. People can now be charged with attempted poaching and conspiracy to commit a crime if they are caught with the implements used to remove abalone as there is a “no-take” policy in place for this species. FishFORCE has drawn up the relevant charge sheets and statements for fisheries control officers and the police. FishFORCE is assisting the police in noncoastal areas with drawing up charge sheets to be used when apprehending people in possession of lobster or perlemoen or who are breaking any of the fisheries laws. Police in noncoastal areas generally have little or no experience in this. FishFORCE has sent a policy proposal to Department of Environment, Forestry and Fisheries to change the policy regulation for

fishing licences and bag limits to include an age specification as people find all sorts of loopholes such as bringing young children on fishing trips to increase their per person quota. FishFORCE is appealing to the South African government to put pressure on landlocked countries such as Lesotho and Zimbabwe to adopt laws against the export of poached marine produce. The FishFORCE team says boxes of abalone stating “Product of Lesotho” and “Product of Zimbabwe” are exported from these countries.

Perlemoen and West Coast rock lobster.

WORLD LEADER IN FISHERIES LAW ENFORCEMENT In March 2020, FishFORCE – A World Leader in Fisheries Law Enforcement Training was published by Nelson Mandela University. It provides an overview of the fisheries crime context and of FishFORCE’s work and can be downloaded from the FishFORCE. Website: fishforce.mandela.ac.za

FishFORCE A World Leader in Fisheries Law Enforcem ent Training

TRAINING, RESEARCH, COLLABORATION FishFORCE’s chief operating officer Michael de Lange says: “Fisheries law enforcement is transdisciplinary by nature, requiring expertise in law, criminology, police science, fisheries science, fisheries management and marine living resources conservation. FishFORCE is a member of initiative five of Operation Phakisa where we help to identify the training needs for all government agencies. “To date, FishFORCE has successfully trained 892 law enforcement officers

from multiple agencies, including the Department of the Environment, Forestry and Fisheries (DEFF), SANParks and SAPS. FishFORCE offers several short courses, some of which are credit-bearing towards formal qualifications such as the new Diploma in Law Enforcement at Nelson Mandela University.” The 2020 modules include: • Law for Fisheries Control Officials, Inspectors and other Enforcement Officials

• Identification of Marine Species and Vessels and Gear used in Illegal Fishing • Enforcement for Marine and Coastal Legislation. At the beginning of 2020, FishFORCE launched the first-ever Criminal Law Enforcement Programme (CLEP) in fisheries law enforcement. It equips law enforcers with the basic knowledge, tools and practical techniques to apply legislation in terms of the Criminal Procedure Act.

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RESEARCH, ADVOCACY

AND INTERNATIONAL COLLABORATION FishFORCE undertakes several research projects around improving law enforcement

ishFORCE conducts multidisciplinary research projects that include law enforcement gap analysis and evaluation, and which focus on the development of national and international law and policies. Research projects for 2020/21 include: • The theory of proﬁt maximisation and crime as opposed to detection prior to poaching. • An evaluation of SA ﬁsheries legislation. • The movement of Illegal, Unreported and Unregulated (IUU) fishing from west to east Africa. • The tension between recreational and subsistence fisheries regimes. • The possible impact of the European Union’s IUU regulations as opposed to the obligations and performance of the South African government. Memorandums of Understanding (MoUs) have been signed between Nelson Mandela University and Eduardo Mondlane University in Mozambique, the University of Dar es Salaam in Tanzania, the University of Nairobi and the Seychelles Fishing Authority. Additional MoUs will be signed with the Indian Ocean Tuna Commission, the University of Seychelles, the University of Mauritius and the Fisheries

Observer Agency in Namibia in 2020. In terms of these MoUs, the universities replicate the work of FishFORCE in their countries, while Nelson Mandela University administers interagency and cross-border training. FishFORCE has working relations with a number of international stakeholders such as the Law Enforcement Training Network of the United Nations Office on Drugs and Crime, Fish-i-Africa, and organisations, universities and state bodies in the Southern African Development Community, Indian Ocean Island States, Norway, the UK, Canada, Australia and Indonesia. FishFORCE has been funded by the Norwegian government since 2016 and enjoys a strong working relationship with this fellow ocean nation.

FIRST BINDING INTERNATIONAL The UN-driven Port States Measures Agreement (PSMA) became enforceable in June 2016 as the first binding international agreement that specifically targets IUU fishing. The majority of

coastal states globally have adopted it, but the next step is to ensure they are equipped to implement it on the ground, otherwise it is just a paper exercise. FishFORCE, in partnership with Operation Phakisa, is assisting South Africa and other coastal states in understanding and practically applying this international law, which gives any coastal country the right to report any vessel involved in IUU fishing, to prevent it from entering the port and landing their catches, and to detain it if it enters their port irrespective of whether the vessel was fishing illegally in that country’s waters. The PSMA also applies to transhipment of catches in areas within and beyond national jurisdiction, which is a major activity in fisheries crime. Training is essential and FishFORCE will be training the harbour masters, chief customs officials and fisheries inspectors in Durban and Cape Town – South Africa’s designated harbours for the PSMA.

Given that initiative five of Operation Phakisa is a prominent government initiative, it assists in ensuring that the appropriate people attend the PSMA course.

IMAGES: CAROL_ANNE/ISTOCKPHOTO.COM

The Nelson Mandela Bay harbour, along with the nearby Coega deep-water harbour, will play a key role in growing the country’s blue economy.

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he Fisheries Observer Agency, which falls under the Food and Agriculture Organisation (FAO) of the UN, makes provision for fisheries observers on vessels to ensure the vessels don’t breach their licence conditions. FishFORCE will be collaborating with this agency in the training of fisheries observers. It’s a global initiative where the fishing vessel pays the observer. Our law makes provision for private companies, such as CapMarine in Cape Town, to undertake this. The observer profession needs to be closely regulated as several observers worldwide have died in the last few years. They see things that people don’t want them to see. A recent article in The Guardian states: “People who monitor ships for illegal fishing and labour practices have been vanishing under suspicious circumstances.” Liz Mitchell, president of the Association of Professional Observers, based in Oregon, US, says they have recorded nine deaths of fishery observers since 2015, all with the same outcome: no information. These are only the deaths they know about.

SIGNIFICANT SADC MILESTONE At the fifth meeting of the Southern African Development Community (SADC) Regional Technical Team for the SADC Fisheries Monitoring Control and Surveillance Coordination Centre, hosted by Nelson Mandela University in March 2020, FishFORCE

THE UNITED NATIONS DECADE OF OCEAN SCIENCE FOR SUSTAINABLE DEVELOPMENT (2021–2030) The decade will provide a once-in-a-lifetime opportunity for nations to work together to generate the global ocean science needed to support the sustainable development of our oceans and connect ocean science with the needs of society. For more information, visit www.unesco.org

was identified as a centre of excellence within the SADC region. This is of the utmost importance as it gives FishFORCE access to more states and substantially increases its reach. When working on organised crime in the fisheries environment it doesn’t help to cover 4 or 5 states when 20 or more are involved. “There is definitely an improvement in international and cross-border and intergovernmental collaboration between the SADC countries, with increased efforts in joint operations,” says Hennie van As, director of FishFORCE. Construction on the SADC Monitoring Control and Surveillance Centre hosted in Maputo will start in 2021. It will be staffed by representatives from all the SADC countries who will collaborate through the Fisheries Task Team. “Maputo is a natural choice for this centre as it is the entrance to the Mozambican channel, which sees a lot of marine traffic. If you need to intercept something, this is the place to be,” says Professor van As. “Maputo, Mombasa, Dar es Salaam, Durban and OR

FISHERIES OBSERVER

AGENCY IN NAMIBIA Collaborating with the Fisheries Observer Agency in Namibia to train observers

Tambo International Airport are central points for the international smuggling of marine living resources, drugs, weapons and other illegal activities.”

ONE OCEAN HUB Nelson Mandela University’s flagship Ocean Sciences Campus, the SARChI Chair in Ocean Science and Marine Food Security, the SARChI Chair in the Law of the Sea and Development in Africa, FishFORCE and the new One Ocean Hub are partnering with local and international institutions in transdisciplinary and interinstitutional research towards the growth of a sustainable ocean economy. The One Ocean Hub is an independent programme of collaborative research aimed at tackling the United Nations Sustainable Development Goals. The Hub’s research group comprises 22 universities and research centres from the UK, South Africa, Ghana, Namibia, Kenya, the South Pacific and the Caribbean. It is led and hosted by the University of Strathclyde, Glasgow, UK. One of FishFORCE’s outputs, which will be published in October, deals with tensions between fishing communities and recreational fishers.

FishFORCE Prevention of Corruption training for Kenyan delegation, Nelson Mandela University, 4-8 March 2019.

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FOOD BASKET KEY FOCUS AREAS:

Agriculture and manufacturing Supply chain processing Food science and technology Packaging and distribution Retail and FMCG The impact of food waste The changing role of business

PUBLICATION DATE: MARCH 2021 ADVERTISING CONTACT: JEROME VAN DER MERWE Sales Project Manager Cell: 082 668 1496 Tel: 021 469 2485 Email: JeromeM@picasso.co.za

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Published: December 2020 Sunday Times Empowerment focuses on policy and organisational change as it impacts diversity and transformation within our corporate and political landscape. The publication questions the slow pace of change and showcases the companies, organisation and individuals championing empowerment within the workplace, economy, and broader leadership.

Visit us on www.businessmediamags.co.za Project Manager â&#x20AC;&#x201C; Jerome van der Merwe Tel: +27(0) 21 469 2485 Cell: +27 82 668 1496| Email: jeromem@picasso.co.za

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MORE THAN JUST FOOD Tiger Brands Foundation’s in-school nutrition programme goes beyond the meal, it is about caring for and empowering the community

IMAGES: TIGERBRANDS FOUNDATION

he Tiger Brands Foundation – in partnership with the Department of Basic Education – offers a nutritious hot breakfast to more than 75 000 learners every day at 102 no-fee paying schools in South Africa. Established nearly 10 years ago, the Tiger Brands Foundation’s primary purpose is to bring about socioeconomic transformation in under-resourced communities around the country, through its nutritious breakfast meal programme. The Foundation offers a nutritious hot breakfast to 74 455 learners every single school day, complementing the department’s National School Nutrition Programme’s midday meals. More than 87 million breakfasts have been served in all nine provinces since the Foundation’s inception. This nutrition programme was designed to go beyond ensuring food security for learners in rural and peri-urban no-fee paying schools. The long-term goal is to ensure that communities, through their involvement in various aspects of the programme, are empowered economically. Food preparation, which is done observing the highest hygiene standards, is one of the areas where the Foundation has brought communities onboard, also offering them an avenue for economic sustainability. The Foundation’s food handlers receive SAQAaccredited training, at no cost to them, and can use these valuable skills to seek employment elsewhere. However, while they are still part of the programme, food handlers are at the coalface of ensuring that schoolchildren

from their community receive a hot nutritious breakfast prepared in a hygienic environment. In the past few years, the Foundation has committed more resources to communities through the construction of kitchens, which has resulted in job opportunities for local people. Each of the kitchens cost about R650 000 to build. The supply of breakfast ingredients to the kitchens around the country requires a flawless distribution process. To achieve this, the Foundation has partnered with a black-owned company that is now a major employer of drivers and warehousing staff.

This nutrition programme was designed to go beyond ensuring food security for learners in rural and peri-urban no-fee paying schools. The long-term goal is to ensure that communities, through their involvement in various aspects of the programme, are empowered economically. The central principle that the Foundation employs in selecting suppliers is the establishment and nurturing of long-term partnerships, engendering the love and appreciation of the task at hand by all service providers. This has, to some degree, been the secret “ingredient” to the success of the breakfast programme. Over the years, the Foundation has undertaken some introspection to determine the impact of the breakfast programme and if it has indeed met expectations. A recent study, conducted in collaboration with the University of Johannesburg, revealed some interesting and welcome “spin-offs” from the programme. The study found that the breakfast meal was a major incentive for learners from vulnerable communities to attend school regularly. In many

schools where the programme is in place, attendance went up significantly – thereby improving educational outcomes. Because these young learners are now spending more time in class instead of loitering in the streets, some communities say there has been a drop in petty crime.

GETTING OTHER ORGANISATIONS TO COMMIT The study showed conclusively that the Foundation’s provision of a single meal a day was having an impact well beyond providing food security. It is partly because of this realisation that the Foundation moved up a gear to ensure that the model it has developed can be replicated and deployed with ease by other institutions. However, hundreds of learners in South Africa are still going hungry every day. The Foundation is now on a crusade to get more businesses to adopt the model and continue the fight to eradicate food insecurity. At the operational level, the Foundation is also one of the most well-run institutions around. The response by other corporates to either commit resources to reach more learners or replicate the model independently has been encouraging. The Foundation has always been willing to share its knowledge and expertise to ensure that communities are given a chance to participate in their economic emancipation.

Facebook: @TheTigerBrandsFoundation Twitter: @TigerBrands_F LinkedIn: The Tiger Brands Foundation

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ENSURING FAIR PLAY BETWEEN ENSURING FAIR PLAY BETWEEN ENSURING FAIR PLAY BETWEEN SUPPLIERS AND CONSUMERS SUPPLIERS AND CONSUMERS SUPPLIERS AND CONSUMERS “Businesses should not fear the Consumer “Businesses should not fear the Consumer “Businesses should not fear the Consumer Protection Queen Munyai, CEO Protection Act,”Act,” sayssays Queen Munyai, CEO Protection Act,” says Queen Munyai, CEO of the Consumer Goods Services of the Consumer Goods andand Services of the Consumer Goods and Services Ombudsman. “Instead, should view Ombudsman. “Instead, theythey should view Ombudsman. they should view us as partners who there to promote us as partners who“Instead, are are there to promote us as partners who are there to promote healthy relationships between them healthy relationships between them andand healthy relationships between them and consumers.” consumers.” consumers.” Queen Munyai Queen Munyai CEOCEO Queen Munyai CEO

our mandate was formalised in 2015, April 2015, we have “Since“Since our mandate was formalised in April we have “Since our mandate was formalised in April 2015, we have in April and accredited in terms of section ago inago April 2015 2015 and accredited in terms of section 82(6)82(6) April Protection 2015Protection and accredited theinConsumer complaints, and closed 606 cases,” she says. complaints, and closed 8 6068cases,” she says. of theofago Consumer Act. Act. in terms of section 82(6) complaints, and closed 8 606 cases,” she says. of the Consumer Protection Act. thewhich act which us mandate,” our mandate,” explains advantage to both parties Munyai, is that The The advantage to both parties says says Munyai, is that “This “This is theisact givesgives us our explains The advantage to both parties says Munyai, is that “This is the act which gives us our mandate,” explains Ms Munyai. “It provides an Industry of Conduct, the service is provided of charge andfunded is funded the service is provided free free of charge and is Ms Munyai. “It provides for anfor Industry CodeCode of Conduct, thea service is provided free charge funded Ms Munyai. provides anmanage Industry Code of disputes Conduct, allows the industry to its own through a joining fee annual and annual levy based onisturnover through joining fee and levyofbased on and turnover whichwhich allows the “It industry to for manage its own disputes through joining fee and annual levy based on turnover which allows the industry to to manage own disputes instead of needing each complaint beits investigated by Table (see Table 1). a 1). instead of needing each complaint betoinvestigated by (see instead of needing eachCommission complaint to(NCC). beWe investigated by (see Table 1). the National Consumer Wethis do this the National Consumer Commission (NCC). do the by National Consumer (NCC). We do this primarily by providing anCommission alternative dispute resolution “Participants also have the option of referring complicated “Participants also have the option of referring complicated primarily providing an alternative dispute resolution “Participants also have the option of referring primarily by providing an alternative dispute resolution service that helps companies to recover service the Ombud instead of litigating,” she complicated explains. casescases to thetoOmbud instead of litigating,” she explains. service that helps companies to recover poor poor service cases to the Ombud instead of litigating,” she explains. service that helps companies to recover poor service situations and retain the goodwill of customers their customers situations and retain the goodwill of their in thein the situations and goodwill their customers in consumers the consumers common ground, thisonly can happen only happen process. theofretain era of the social media, an increasingly reachreach common ground, this can process. In theInera social media, thisof isthis an is increasingly consumers common ground, this can only happen process. In the era of social this isshould an increasingly the company is willing to cooperate. important competitive edge that companies should if the ifcompany is reach willing to cooperate. important competitive edge that media, companies be be important competitive edge that companies should be if the company is willing to cooperate. to embrace. willingwilling to embrace. willing to embrace.

the parties to reach a settlement or disagree with our “If the“Ifparties fail tofail reach a settlement or disagree with our “If the parties fail to reach a settlement or disagree with recommendations, a complainant hasright the to right to lodge a we don’t We completely are completely impartial recommendations, a complainant has the lodge a our “But “But we don’t take take sides.sides. We are impartial recommendations, a complainant has the right to lodge “But we don’t take sides. We are completely impartial complaint withNational the National Consumer Commission. and at look at every its merits. Our watchwords complaint with the Consumer Commission. The Thea and look every case case on itson merits. Our watchwords are are complaint with the aNational Consumer The andtransparency, looktransparency, at every and casegood on its merits. Our watchwords canopen then open formal investigation and if warranted, fairness, and good business practice. are NCC NCC can then a formal investigation and ifCommission. warranted, fairness, business practice. NCC can then open a formal investigation and if warranted, fairness, transparency, and good business practice.

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the case the National Consumer Tribunal (NCT). outlined the Code andCPA. the CPA. Failure refer refer the case to thetoNational Consumer Tribunal (NCT). outlined in theinCode and the Failure to dotosodois so a is a refer the case to the National Consumer Tribunal (NCT). outlined in the Code and the CPA. Failure to do so is a The NCT haspower the power to administrative levy administrative penalties breach the Consumer Protection The NCT has the to levy penalties breach of theofConsumer Protection Act. Act. The has theannual power to levy administrative penalties breach of the Consumer Protection Act. up to 10cent per of cent of annual turnover or make any other of up of to 10NCT per turnover or make any other of up to 10 per cent of annual turnover or make any other “By complying, will joining be joining “By complying, they they will be moremore than than 900* 900* “By complying, they willConsumer be Goods joining more 900* companies already onConsumer the Goods andthan Services companies already on the and Services companies already onparticipants. the Consumer Goods Munyai that overwhelmingly companies recognise Ombud’s of registered participants. Theand very Munyai adds adds that overwhelmingly companies recognise Ombud’s list oflist registered The very act Services ofact of Munyai adds that overwhelmingly companies recognise Ombud’s list of registered participants. The very the value of belonging the CGSO androle the itrole it plays participation the scheme a clear message the value of belonging to thetoCGSO and the plays participation in thein scheme sendssends a clear message toact toof value of belonging the reputational CGSO and and regulatory the it plays participation invalue the value scheme a clear message to inthe helping business the androle regulatory consumers that you theirsends business andyou that you are in helping business avoidavoid thetoreputational consumers that you their business and that are in helping avoid reputational and that youorganisation”. value their business and that you are that result thethe poor handling of regulatory customer aconsumers customer-centric risks risks that resultbusiness from from the poor handling of customer a customer-centric organisation”. risks that result from the poor handling of customer a customer-centric organisation”. complaints. complaints. complaints.

you would to know please call on(0)11 +27 (0)11 If youIfwould like tolike know more,more, please call us onus +27 If you would like to know more, please call us on +27 (0)11 “All qualifying businesses the sector comply with the 781 2607 “All qualifying businesses in thein sector must must comply with the 781 2607 “All qualifying businesses in the sector must comply with the 781 2607 takethrough you through the registration process, orcan youvisit can visit by signing the CGSO, paying the participation take you the registration process, or you CodeCode by signing up to up thetoCGSO, paying the participation take you through the registration process, or you can visit Code by signing up to the CGSO, paying the participation the CGSO website, www.cgso.org.za, and register online. and complying with dispute the dispute resolution process the CGSO website, www.cgso.org.za, and register online. fees fees and complying with the resolution process fees and complying with the dispute resolution process the CGSO website, www.cgso.org.za, and register online. *companies belong the group andindividual not individual or outlet *companies belong at theatgroup level,level, and not storestore or outlet level.level. *companies belong at the group level, and not individual store or outlet level.

DID YOU KNOW: DID YOU KNOW: DID YOU KNOW: Companies thatnot do register not register to participate the GSO’s mandate to report the Department Companies that do to participate in thein the of theofGSO’s mandate is to is report to thetoDepartment Companies doin not register toofparticipate the the GSO’s is toNCC report the CGSO scheme contravention section of Trade ofof Trade and mandate Industry and the NCC on Department complaints CGSO scheme arethat inare contravention of section 82(8)82(8) ofin of and Industry and the ontocomplaints CGSO scheme are Act in contravention section 82(8) of Trade and Industry and thesuppliers. NCC on complaints the Consumer Protection Actmight and might be liable for received, anof received, and non-cooperative suppliers. the Consumer Protection and beof liable for an trendstrends and non-cooperative the Consumer Protection Act and might be liable for an received, trends and non-cooperative suppliers. the NCC investigate the company and refer the matter The Code applies all retailers, suppliers, wholesalers, the NCC investigate the company and refer the matter The Code applies to all to retailers, suppliers, wholesalers, the NCC investigate the company and refer the matter The Code applies to all retailers, suppliers, wholesalers, the National Consumer Tribunal. distributors, manufactures, producers, importers, to thetoNational Consumer Tribunal. distributors, manufactures, producers, importers, to the National Consumer Tribunal. distributors, manufactures, producers, intermediaries, logistics and supply chain agents intermediaries, logistics and supply chain agents inimporters, thein the intermediaries, logistics and elsewhere supply chain in the CGSO is governed a board of directors FMCG industry unless regulated elsewhere by public The The CGSO is governed by abyboard of directors FMCG industry unless regulated byagents public The CGSO isconsumer governed by body a board of directors FMCG regulated elsewhere comprising industry, consumer and independent regulation or a Code of Conduct accredited in by terms of comprising industry, body and independent regulation or aindustry Code ofunless Conduct accredited in terms ofpublic comprisingAlthough industry, consumer body and independent regulation athe Code of Protection Conduct accredited terms of representatives. Although the board consists of industry section ofConsumer Consumer Protection Act. in Currently, representatives. the board consists of industry section 82 of82 theor Act. Currently, representatives. Although the board consists of industry section 82 of the Consumer Protection Act. Currently, representatives, no in role the adjudication the other only other accredited the Motor Industry representatives, they they play play no role theinadjudication the only accredited CodeCode is theisMotor Industry representatives, they play no role in the adjudication the only other accredited Code is the Motor Industry of complaints. ensures complaints are managed of Conduct. of complaints. This This ensures complaints are managed CodeCode of Conduct. of complaints. This ensures complaints are managed Code of Conduct.

In terms the CGSO Industry participants contribute the funding the operations the CGSO by means In terms of theofCGSO Industry Code,Code, participants contribute to thetofunding of theofoperations of theofCGSO by means In terms ofofthe CGSO Industry Code, to thea funding of thedetermined operations of thefrom CGSO bytomeans the payment of a joining fee an andannual anparticipants annual levycontribute and (if necessary) a special levy determined time time of theof payment a joining fee and levy and (if necessary) special levy from time to time of the payment of a joining fee and an annual levy and (if necessary) a special levy determined from time to time by the CGSO board, based on annual turnover. by the CGSO board, based on annual turnover. by the CGSO board, based on annual turnover. GROUP TURNOVER RANGE INCEPTION ANNUAL ANNUAL GROUP TURNOVER RANGE INCEPTION ANNUAL FEE FEE NEWNEW ANNUAL FEE FEE GROUP TURNOVER RANGE INCEPTION ANNUAL FEE NEW ANNUAL FEE Group 1 R3 billion + 250 000 200 000 Group 1 R3 billion + R 250R000 R 200R000 Group 1 R3 billion + R 250 000 R 200 000 Group 2 Above R1 billion R3 billion 150 000 120 000 Group 2 Above R1 billion to R3tobillion R 150R000 R 120R000 Group 2 Above R1 billion to R3 billion R 150 000 R 120 000 Group 3 Above million R1 billion R 50 R 50 000 40 000 Group 3 Above R500R500 million to R1tobillion 000 R 40 R 000 Group 3 Above R500 million to R1 billion R 50 000 R 40 000 Group 4 Above R5 million to R500 million R 3 000 R 3 000 R 3 360 Group 4 Above R5 million to R500 million R 3 360 Group 4 Above R5 million to R500 million R 3 000 R 3 360 Group 5 Above R1 million R5 million R 1 500 R 1 680 Group 5 Above R1 million to R5tomillion R 1 500 R 1 680 Group 5 Above R1 million to R5 million R 1 500 R 1 680 Group 6 R1 million no cost no cost Group 6 R1 toR1 R1tomillion no cost no cost Group 6 R1 to R1 million no cost no cost

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