Business Update Issue 18

BUSINESS

A publication for progressive business

A NEW ROADMAP FOR SA TOURISM

AN ECONOMIC REBOOT Creating a start-up nation that can thrive in a world of Covid-19

WOMEN IN MINING Thabile Makgala is disrupting the status quo in mining

BUSINESS RESCUE A viable solution for businesses on the brink of closure

SAVING SPAZA’S The pros and cons of retailers having a hand in the township market

Issue 18 | September 2020

MXN

www.mxndevelopment.co.za Physical address: 41 Johannesburg Road, Irenepark, Klerksdorp, 2571 Contact us on: 018 011 3405 info@mxndevelopment.co.za

Development Construction

Changing people’s lives MXN Development Construction was established in 1996 and is 100% BBBEE with Mr. Nhlanhla Nkala as CEO / Chairman. MXN Development Construction is a property investment, development and construction company in South Africa. MXN has a track record for excellence and innovation in the industry. The principals and executive team in MXN have half a century of combined successful experience in built environment in South Africa.

Our in-house services consist of:

Current projects:

• • • • • • • • •

• Matlosana Estates (N12 West Catalytic Development in Klerksdorp) consisting of: - Bulk & Internal Services (Water, Electricity, Sanitation, Roads, Stormwater) - Affordable Housing Units – 623 - Site & Service - 453 - Social Housing Units – 2888 - FLISP / Gap Housing Units – 1123 - Subsidized Housing Units – 4092 - Total Business Development – 31.87 ha • Township Development in the City of Matlosana (NWP) - Tigane Ext. 7 & 8 – 3078 Subsidized Units - Jouberton Ext. 34 – 2596 Subsidized Units - Kanana Ext. 16 – 2290 Subsidized Units • Township Development in Ubuhlebezwe Local Municipality (KZN) - Nelson Mandela View – 382 mixed units - OR Tambo View – 512 subsidized units.

Property Investment & Development Township Establishments Construction of Affordable housing Construction of Low-cost housing Construction of Social Housing Civil Engineering Services Electrical Engineering Services Road works and Maintenance Plant Hire

Completed projects: • New way Sport Complex, Khayelitsha & Belhar Sports Complex - Tygerberg Municipality – Value R8.8 mil • Nyanga Abbet Centre/Home Affairs - Cape Town City – Value: R 5.8 mil • Storm Drainage Repair – Cape Town City – Value: R 5.8 mil • Bona View Affordable Housing Units in Cape Town – Value – R130 mil

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CONVENOR’S MESSAGE

TOURISM TO SPRING BACK TO LIFE After about five months in some or other stage of lockdown, there is now a palpable sense of recovery on the go.

We see it in the increase of traffic and movement of people, and in the astonishing number of projects, virtual meetings and engagements being announced across various media platforms. The economy has been shifted into a higher gear and seems to be slowly coming back up to speed.

And the timing of this new beginning could not be more synchronous.

Ever resilient, South Africans took to social media on 1 September to celebrate Spring Day, keen to put winter behind them – in more than one sense – and pick up the pace of life and business.

What better way is there to celebrate than to soak up some of our glorious natural heritage, on full display at this time of year: pristine beaches, whale viewing, game viewing and the most spectacular annual wildflower display.

The gradual revival of the tourism industry, which has been hard hit by the stringent but necessary lockdown measures, will find expression in Tourism Month in September, when the focus turns to the importance of the tourism sector in the South African economy. This month’s activities will culminate on 27 September with the United Nations World Tourism

Organisation’s (UNWTO) World Tourism Day. It is fi tting, therefore, that this edition of Business Update features tourism as a strong theme among its articles.

Our aim is to garner a sense of hope that the engine of our economy will once more reach its full potential, and to encourage you to join the efforts of the Progressive Business Forum (PBF) in the programme of action and through it, to make a difference to your business and our country. Enjoy the read!

Sasha Muller

Convenor Sasha Muller

Managing Editors Alwyn Marx and Olivia Main

Chief Albert Luthuli House 54 Pixley Ka Isaka Seme Street Johannesburg

Art Director Clare Schenk

Contributors

Publisher

Deven Govender, Clement Marumoagae, Thapelo Masilela, Frank Mokgoloboto, Andile Ntingi, Busisiwe Nxumalo, Vernon Subban, Clint van Aswegen

Yes!Media Suite 20-301B Waverley Business Park, Kotzee Road, Mowbray, Cape Town PO Box 44383, Claremont 7735 Tel: +27 21 447 6467 www.yesmedia.co.za

Images Shutterstock.com Business Update is published by Yes Media. Opinions expressed in Business Update are not necessarily those of Yes Media, the ANC or Progressive Business Forum.

No responsibility can be accepted for errors, as all information is believed to be correct at the time of going to print. Copyright subsists in all work in this magazine. Any reproduction or adaptation, in whole or in part, without written permission of the publishers is strictly prohibited and is an act of copyright infringement which may, in certain circumstances, constitute a criminal offence.

Printed by CTP Printers

National Sales Manager Jan Weiss

Project Sales Tatenda Musonza Reginald Motsoahae Crosby Moruthane

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We believe in the powerful impact of world-class health infrastructure.

SAKHIWO Health Solutions was established

Current Projects

as an implementing and multi-disciplinary development agency for health facilities.

We pull together some of the best expertise in South Africa to bring you turnkey solutions : • Strategic and facility planning • Health technology planning • Facility design • Project Management • Commissioning • Health technology maintenance management The aim of SAKHIWO is to improve infrastructure and facility delivery to a level not experienced before. We will do this by partnering with user departments at all levels of Government in South Africa, SADEC and the rest of Africa as well as fostering relationships with Development Agencies and Financial Institutions and Private Hospital and Health Services Group. Whether they require our expertise in one or two fields or to deliver the full spectrum of built environment consulting services, each project is tailor-made around their specific needs.

Sakhiwo.indd 38

SOUTH AFRICA • Cecilia Makiwane Hospital • Lilitha College of Nursing • Frere Hospital (Oncology, ICU) • Sipetu District Hospital • Thabazimbi District Hospital • Letaba Regional Hospital • Limpopo Academic Hospital • Siloam Hospital • Eastern Cape Health Facilities Maintenance AFRICAN HOSPITALS - EMPLOYED FOR HEALTH PLANNING, DESIGN, PROJECT MANAGEMENT AND COMMISSIONING • Oshakati Hospital, Namibia • Otjiwarongo Hospital, Namibia • Ondangwa Hospital, Namibia • Khomas Hospital, Namibia • Selborne Hospital, Bulawayo, Zimbabwe • Nampula General Hospital, Mozambique • Women’s Health Hospital and Medical School, Kampala, Uganda • The Avenues Women & Child Hospital, Harare, Zimbabwe

GAUTENG Pretoria (Head Office), 3rd Floor, Block 6, Summit Place Office Park, 221 Garsfontein Road, Menlyn, Pretoria, 0181 Tel: +27 (0)12 346 2749 EASTERN CAPE East London, 1 Rochester Road, Vincent, East London Tel: +27 (0) 43 727 0791 WESTERN CAPE Cape Town, 13 Waterford Mew, 3 Mews Close, Waterford Place, Century City Boulevard, Century City, 7441 Tel: +27 (0) 21 447 4601 NAMIBIA Windhoek, 340 Sam Nujoma Drive, Klein Windhoek Tel: +264 61 256 191

Email: mail@sakhiwo.com www.sakhiwo.com

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CONTENTS 8

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COVER STORY

Spring brings with it a changed landscape, a new beginning for tourism – a sector that has been hard hit, but which promises vital economic growth and increased employment.

By Hon. Mmamoloko Kubayi-Ngubane and Hon. Fish Mahlalela

16 ECONOMY A plan of action for reviving the economy by turning South Africa into a start-up nation. By Deven Govender

18 INSURANCE Parametric insurance could be the next big hero of risk management and business continuity plans.

By Vernon Subban

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20 BUSINESS LEADER An interview with Thabile Makgala about how to succeed as a woman in the maledominated arena of the mining sector.

24 WOMEN IN BUSINESS Meet five women who are taking the small business space by storm – uplifting women and showing the world how high they can go. By The Small Business Site

28 LABOUR LAW The retrenchment process is a complex business that needs to be followed to the letter of the law – take note.

By Clement Marumoagae

32 BUSINESS SUPPORT Rescuing distressed businesses has the knock-on effect of saving jobs, keeping creditors happy and keeping businesses alive. By Clint van Aswegen

34 RETAIL A discussion on whether the large formal retailers should get a piece of the township marketplace pie. By Andile Ntingi

38 TECHNOLOGY African businesses need to action the opportunities presented by the Fourth Industrial Revolution, to increase their global competitiveness. By Frank Mokgoloboto

42 SMME DEVELOPMENT The role of small business lies in who they employ and empower through the supply chain process. By Thapelo Masilela

44 HOSPITALITY Take a virtual stroll through the luxurious 7th Wonder Guest House, where the ultimate in comfort, views and hospitality awaits you.

26 GENDER EQUALITY

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How do we get to the root cause of the fact that gender-based violence in South Africa has been declared the second pandemic? By Busisiwe Nxumalo

46 BOOK REVIEW Tourism, Travel & Covid-19 by Shanaleigh Hebbard offers some relief to those who ply their trade in the tourism industry.

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REIMAGINING THE ECONOMY IN THE (UNCERTAIN) AGE OF COVID-19 A message from ANC Treasurer General, Paul Mashatile, about pressing the reset button on the South African economy

T

he Covid-19 crisis has not only painfully exposed and widened existing economic and social divisions in society, but it has also created new ones. The crisis has accentuated disparities among workers, hitting the hardest for female and least-educated workers.

It has exposed the precariousness of work and once again shone the spotlight on the vast digital divide. Further, the crisis has challenged governments who now face higher spending needs and ballooning deficits. In this age of Covid-19, businesses are grappling with an uncertain and highly unpredictable future. This negatively affects their investment decisions.

The crisis and the fault-lines it is exposing and widening have inspired relentless calls for a rethink on the structure of national economies, as well as on the economic priorities that need to be pursued.

We in the ANC see this as an opportunity to press the reset button on the South African economy; to build a new, fastgrowing and inclusive economy that deliberately targets the fault-lines so sharply exposed by Covid-19.

To us, this is also a moment for a permanent and decisive break with the past of low and declining growth, falling per capita incomes, low investment, as well as high and deeply entrenched levels of inequality, poverty and unemployment.

Indeed, we see this as a definitive moment not only to address the weaknesses of the pre-Covid-19 South African economy, but also and more importantly to create an environment supportive to sustained and accelerated economic recovery and reconstruction.

Ultimately, the goal is to build an economy that is more equitable, adaptable and sustainable – a more resilient economy that works for all South Africans. As the ANC we are determined not merely to return our economy to where it was before the coronavirus, but to forge a new economy in a new global reality.

Our proposals on the new economy we are envisaging are detailed in a document we published titled Reconstruction, Growth and Transformation: Building a New, Inclusive Economy.

We are mobilising all stakeholders behind an infrastructure-led economic recovery and reconstruction. In our proposals we are prioritising climate resilience; industrialisation through localisation; transformation; mass employment creation; support for small business, cooperatives and the informal sector.

Equally, we continue to promote the objectives of Broad-Based Black Economic Empowerment as well as greater integration into the African continent, taking advantage of the Africa Free Trade Agreement.

In our view, the success of the economic recovery and reconstruction effort will depend on, among others, ensuring fiscal sustainability; effective resource mobilisation – including crowding in private sector investment in infrastructure delivery – as well as mobilising the broader savings industry to invest in high-impact developmental projects.

Work is also underway to ensure more effective use of the credit guarantee scheme established with banks to support the continuity of businesses in distress.

We are also building partnerships across all sectors. We view these partnerships as key in mobilising all round support and ownership of the economic recovery and reconstruction effort.

We are encouraged that business, labour and civil society have also put forward very concrete proposals on how to drive economic recovery and reconstruction.

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TG’S MESSAGE

Our immediate challenge is to agree on the specific contributions and the compromises that each of the stakeholders must commit to. Despite this challenge, implementation especially in areas where there is broad agreement – and there are many such areas – must begin urgently. Time is not on our side!

The Covid-19 pandemic has taken a heavy toll on human life, and it is also having a devastating impact on economies across the globe. The extent of the damage to our economy was demonstrated by the GDP numbers for the second quarter of 2020.

They show that GDP fell by just over 16% between the first and second quarters of 2020, giving an annualised growth rate of -51%.

According to StatsSA, the second quarter of 2020 will perhaps become known as the “pandemic quarter”. The GDP decline for the quarter was the biggest since 1960. In addition, our economy continues to shed jobs. Certain sectors such as the tourism and hospitality industry have also been scarred permanently. The result will be widening inequality as well as rising and deepening poverty. All of this underscores the absolute urgency to start with the implementation of measures that will place our economy firmly on a path to recovery and reconstruction.

We applaud our government for acting swiftly and decisively to put in place measures to curb the spread of the coronavirus. These measures have saved many lives.

They have also prevented our country from having an out-of-control pandemic.

We are convinced that the foundation for sustained economic recovery is to continue to control the spread of the pandemic. We are encouraged that the job of rebuilding the South African economy has begun in earnest. All hands are now on deck.

While it may take years to recover from the economic devastation caused by the Covid-19 crisis, there are urgent initiatives that must be undertaken to restore jobs, stimulate demand and cushion households and firms in distress. These include immediate interventions to promote mass public employment, building on the expanded public works programme, as well as taking advantage of opportunities in the circular economy. They also include maximising the use of the governmentbacked credit guarantee scheme to support more SMMEs, including those owned by black people, women and people with disabilities, during this difficult period.

Another important short-term intervention is to strengthen local procurement and manufacturing of medical supplies such as personal protective and other medical equipment as our country continues the battle against Covid-19.

The task of rebuilding our economy could be made even more challenging by the reality that the Covid-19 crisis could fundamentally change how risk and uncertainty is viewed and managed. This is likely to have lasting consequences on investment decisions by firms, spending

This is an opportunity to press the reset button on the South African economy; to build a new, fast-growing and inclusive economy that deliberately targets the fault-lines so sharply exposed by Covid-19 and savings decisions by households, business strategies, government policies and consequently on the overall pace and direction of the economic recovery and reconstruction effort.

Indeed, the new normal ushered in by Covid-19 comes with many unknowns. It brings sharply to the fore critical questions such as: How will the future job market look? Will business travel be replaced by “zooming”? More broadly, what is the future of travel? What will be the structure of the new economies of the future? What is the future of international trade? And how will supply chains of the future be reconfigured?

Such unknowns increase uncertainty.

They could throw a spanner in the works as we imagine a future economy for our country. However, even in the face of these uncertainties and our changed perceptions of risk and how to manage it, the work of rebuilding our economy must continue.

In particular, the implementation of what has been agreed to by all stakeholders must proceed without delay. Time is not on our side!

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COVER STORY

A NEW ROADMAP FOR SA TOURISM Minister of Tourism MMAMOLOKO KUBAYI-NGUBANE offers a sunny outlook for the revitalisation of the tourism sector and its far-reaching network, through the Tourism Recovery Plan.

And then, Deputy Minister of Tourism FISH MAHLALELA draws a roadmap of sustainable tourism development. The overarching theme: to emerge tourism strong!

T

he Covid-19 pandemic has altered the tourism landscape dramatically, with devastating effects on all facets of our lives – as the tourism value chain cascades through many sectors.

This is an unprecedented humanitarian and health crisis and these effects are felt the world over. The Department of Tourism and government at large is therefore committed to putting people first through support to the industry and communities, to mitigate the negative effects of this pandemic. This is also in alignment with the United Nations World Tourism Organisation’s (UNWTO) ethos of “people first”.

Since the country entered level 3 of the Risk-Adjusted Strategy, the tourism sector also began its march towards full operation. The reality of the Covid-19 pandemic and the fluctuating risk of the virus spread has dictated that we pace ourselves in our efforts to reopen the sector. However, we believe that so far, one step at a time, we are walking in the right direction.

THE BAD NEWS: THE IMPACT OF COVID-19 ON TOURISM The impact of the pandemic has been devastating for the sector. Many businesses are at risk and many jobs have already been lost. However, we are doing everything we can to ensure that the impact is minimised.

Over the last four months, we’ve had to work hard in partnership with the private sector to develop health and safety protocols and find innovative ways for the early reopening of the sector. Successive discussions with industry representatives on stringent prevention protocols and guidelines for the tourism sector yielded results, along with various sub-sectors and activities opening under level 3.

Tourism has been one of the worst affected sectors globally. The United Nations Conference on Trade and Development (UNCTAD) has listed South Africa as one of the top 15 countries that are most negatively impacted by the near-closure of the international travel industry during the pandemic.

Accordingly, UNCTAD predicts that tourism in South Africa is going to lose 3% in GDP contribution, and the loss of unskilled jobs in the sector could be as high as 12% if the virus is contained in the next eight months.

It is estimated that R54.2-billion in output may already have been lost between mid-March and the end of May this year. The sector now faces a potential 75% revenue reduction in 2020, putting a further R149.7-billion in output, 438 000 jobs and R80.2billion in foreign receipts at risk.

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THE GOOD NEWS: TOURISM SECTOR SUPPORT AND RECOVERY PLANS The tourism industry is largely comprised of Small, Micro and Medium Enterprises (SMMEs), most of which are survivalists by nature and with limited access to funding from commercial institutions.

The introduction of the Tourism Relief Fund by the Department of Tourism therefore provided much-needed succour to these enterprises. This fund provided a once-off capped grant assistance to SMMEs in the tourism value chain to ensure their sustainability during and post the implementation of government measures to curb the spread of Covid-19 in South Africa.

Capped at R50 000 per entity, grant funding could be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure costs items. Guided by the Tourism BroadBased Black Economic Empowerment (B-BBEE) Codes of Good Practice, the Tourism Relief Fund was administered in line with the objectives of economic transformation, and our vision to ensure sustainable and inclusive tourism development.

Since its inception, we have redirected R200-million which assisted 4 000 businesses through the Tourism Relief Fund. We ensured that the benefi t is spread geographically across the country to cover even businesses in small dorpies and townships as discussed in the Portfolio Committee.

The beneficiaries per province across the subsectors of accommodation, hospitality and travel services were: Eastern Cape – 457, Free State – 134, Gauteng – 1017, KwaZulu-Natal – 607, Limpopo – 294, Mpumalanga – 238, North West – 162, Northern Cape – 124, Western Cape – 967.

We have further reprioritised our budget to put together the Tourist Guides Relief Fund. In this regard, we have set aside a total of R30-million to provide financial relief for freelance tourist guides over a period of two to three months. The beneficiaries of this scheme must be registered tourist guides in terms of the Tourism Act.

So far, we have received a list of 9 380 tourist guides from the provinces and we are finalising the verification process to start paying the eligible beneficiaries.

The department also introduced the Green Tourism Incentive Programme (GTIP), administered by the Industrial Development Corporation (IDC), to encourage private tourism enterprises to move towards more efficient utilisation of energy and water resources. The implementation modalities of the GTIP are currently being reviewed to ensure that the much-needed relief for businesses to retrofi t is speedily disbursed, so that they can reduce operational costs.

We have set aside R40-million for this programme. This will go a long way in providing the much-needed relief in this Covid-19 environment and beyond.

With regards to tourism grading, South African Tourism has resolved to support the sector with provision of an exemption for up to 12 months of the grading assessments and fees followed by a payment holiday of 100% grading discount, when the sector resumes operation, to aid the recovery of the sector.

Government has also intervened to support businesses that are in distress through the Coronavirus Covid-19 Loan Guarantee Scheme, worth R200-billion and this is still accessible to many businesses. Our sector also benefi tted from the Temporary Employer/Employee Relief Scheme (TERS), established to provide financial relief to employees during Covid-19 through the Unemployment Insurance Fund (UIF). Working together with the Tourism Business Council of South Africa (TBCSA), we were able to arrange for a special dispensation such that tourism businesses could apply for TERS through the TBCSA. TERS has so far disbursed R34-billion in R7.4-million payments since March this year. We were also one of the sectors that lobbied for the successful extension until 15 August.

Working together with various stakeholders, we have put together the Tourism Recovery Plan and we are in the final stages of consultation, after which we will submit the plan to Cabinet for approval in August 2020.

We are committed to continue to work closely with the sector in developing protocols and sharing information to ensure that we navigate this storm and emerge tourism strong.

HON. MMAMOLOKO KUBAYI-NGUBANE MINISTER OF TOURISM

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COVER STORY

MESSAGE FROM FISH MAHLALELA, DEPUTY MINISTER OF TOURISM

I

n recent decades, tourism has come of age and is now firmly established as an important contributor to economic growth and employment and a driver for achieving the global development goals.

The tourism sector is one the larger economic sectors that is significantly impacted by the Covid-19 pandemic.

This has resulted in the need for enhanced sector support, to help protect this sector during the Covid-19 pandemic as well as aid it during the recovery phase.

As the tourism sector, while traversing an unchartered path, we do so with positivity and firm in the knowledge that we will emerge tourism strong.

Our strategy for the Medium-Term Strategic Framework (MTSF) period is therefore anchored around commitments for growth and development.

DEVELOPING THE TOURISM SECTOR Coupled with the introduction of the District Development Model (DDM), we believe that we will enhance the competitiveness of tourism localities as we continue to diversify our offerings, with local government as a key role-player in the spatial management of the tourism estate, including work done in communities under traditional leadership.

Through the Enterprise Development and Transformation Programme, we are

introducing new players into the tourism economy and thus contributing to the competitiveness of tourism destinations.

We recognise that technology will drive the provision of government services into the future. The Enterprise Development and Transformation Portal will therefore serve as an online supplier marketplace for SMMEs in order to promote sector transformation and job creation.

Our Working for Tourism Programme continues to support training. Firstly, through on-the-job training within infrastructure projects, and secondly, through stand-alone training interventions with participants accumulating credits towards a qualification.

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We will create 2 500 work opportunities through the Department’s Expanded Public Works Programme (EPWP) during this financial year.

Projects for 2020/21 include (1) Tour Guide Capacity Building, (2) Food Safety Quality Assurers, (3) Wine Service Training (Sommelier), and (4) Hospitality and Fast Food Training programmes.

We have unfortunately had to suspend the Youth Chefs Training and Coastal Marine Tourism Skills Development Programmes in line with the Covid-19 restrictions and risk assessments.

DEVELOPING OUR DESTINATIONS From a Destination Development perspective, we continue our path of inclusive growth through investments in community tourism. Some of this

year’s work will include finalisation of the nodal development concepts for Numbi Gate in Mpumalanga: Ehlanzeni District Municipality, Nandoni Dam in Limpopo: Vhembe District Municipality, Tshathogwe Game Farm in Limpopo, Mtititi Game Farm in Limpopo: Mopani District Municipality, and Mapate Recreational Social Tourism Facility in Limpopo: Vhembe District Municipality.

Through the Tourism Grading Council of South Africa, we are also introducing an approach to prepare establishments for grading. This will enable establishments to receive feedback on areas that require attention prior to full grading application, thereby minimising the numbers of those that do not make it or increasing the uptake, particularly for emerging small enterprises.

We are introducing new players into the tourism economy and thus contributing to the competitiveness of tourism destinations We will equally pursue a well-developed system of handling and managing complaints from travellers and consumers, with the aim of ensuring the speedy resolution of such complaints.

The Meetings Incentives Conferences and Exhibitions (MICE) sector has borne the brunt of the global impact of the Covid-19 pandemic, with cancellations of events. This pandemic resulted in the cancellation of Travel Trade Platforms globally such as ITB, IMEX and WTM

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COVER STORY

System (NTIMS) to gather, analyse and provide data to inform our decisionmaking and enable prioritisation of sector initiatives, geared towards areas with high tourism potential, including townships and rural areas.

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KEEPING TOURISTS SAFE

to name a few. Included in these are our own platforms such as Africa’s Travel Indaba and Meetings Africa.

The South African National Conventions Bureau (SANCB) will this year focus on the support of the recovery of business events tourism by targeting future events, which have a bidding process of three- to four-year lead times.

The geographic spread of tourism business events is another way of broadening participation in the sector.

For this, South African Tourism (SAT) is developing a framework to capacitate national associations to host business events in Villages, Towns and Small Dorpies (VTSDs) across our nine provinces.

We will also implement the National Tourism Information and Monitoring

The National Tourism Safety Strategy, finalised late last year, covers three strategic interventions namely (1) proactive measures – focusing on minimising the incidences that affect tourist safety, (2) responsive measures, and (3) an after-care programme to ensure effective support to tourists in distress.

Our collaboration with the South African Police Services resulted in the signing of the Memorandum of Understanding to identify and address challenges in tourism safety, including (1) identification of tourism hotspots, (2) the analysis and enhancement of crime prevention initiatives as well as (3) creating a platform for joint awareness programmes.

The Tourism Monitors Programme was implemented in parks managed

by South African National Parks (SANParks), and gardens managed by the South African National Biodiversity Institute (SANBI). Although we have 302 participants at SANParks, this programme has been temporarily suspended from 1 June 2020 due to the impact of Covid-19. Plans are also underway for their further training by the South African Police Services Academy.

We will create 2 500 work opportunities through the Department’s Expanded Public Works Programme (EPWP) during this financial year To this end, we have undertaken an assessment of tourism vulnerability at a local level.

In the pursuit of economic diplomacy and development cooperation, the department has bilateral agreements with 35 countries globally. We will continue to work towards regional integration through, capacity-building initiatives, investment promotion, sharing of best practices and dialogue about addressing tourism challenges and opportunities on the continent.

Through the regional economic and political alliance of the Southern African Development Community (SADC), we will collaborate with other states to implement the SADC Tourism Programme, as a roadmap of a sustainable tourism development and growth agenda for the region.

Political commitment is key to ensure that tourism can lead wider economic and social recovery, as proven in past disruptions. While this phase might be a winter of despair, our recovery speaks to a summer of hope. Together we will ensure that as an industry, we will emerge tourism strong.

KEEPING TOURISM SUSTAINABLE Climate change remains an overarching threat. Accelerating the implementation of the 2015 Paris Climate Agreement requires clear strategies and a progressive system reform for climate responsiveness for tourism planning at provincial and municipal level.

While we may be faced with Covid-19 today, climate change brings with it other forms of social and natural disasters, which also has a direct impact on the economy.

HON. FISH MAHLALELA DEPUTY MINISTER OF TOURISM

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INTERVIEW | SBD BUSINESS SYSTEMS

Our company boasts an employee profile that is 81% black, 54% women, and an average age of 33.

As a company, we deliberately aim to recruit and provide opportunities to young, black talent with entrepreneurial potential.

What are the limiting factors within the industry?

Themba Ndhlovu SBD CEO Who is SBD Business Systems?

SBD is one of the few truly black-owned South African printing and technology specialists, with 74% black ownership.

The company has a national supply, service and support network comprising of black, in particular African, emerging entities.

SBD’s main objective is to assist the public sector to improve its use of technology for end-to-end document management, cost management and service. Our goal is to assist government departments, stateowned enterprises and municipalities to improve service delivery, effectiveness and efficiencies through the use of technology.

Our vision is that of a transformed IT industry with an increased number of genuinely empowered technology-oriented and capable entities. This is reflected in our staff compliment and the network of partners we work with.

What makes SBD unique within the South African ICT and print space?

In this industry, SBD competes with a few multinational white-owned monopolies.

SBD is the only company that has a direct relationship with the OEM (Original Equipment Manufacturer) and through this relationship it is able to provide a quality service at reasonable pricing.

The industry in which SBD operates is the least transformed of all industries.

The major reasons why emerging and small empowered entities are battling to emerge and grow in this sector are gate keeping tendencies as well as business challenges that relate, among others, to the lack of technical expertise and the concentration of technical expertise lying in big monopoly entities.

There is a deliberate effort by current industry players to muscle out existing black, in particular African, technical expertise. Through gate keeping tendencies, new entrants are kept out or bought out to keep the industry racial profile. Emerging empowered entities are frustrated and wiped out by competition. Often, they are labeled corrupt or politically connected and choked out of business through legal battles against bids awarded to them.

Where emerging black enterprises survive the above, they go under through the denial of loan funding by commercial banks for the spurious reason of the unreliability of government contracts.

When the few that pull through approach Development Funding Institutions set up by government purportedly to advance transformation, doors are slammed in their face. There is no capacity for finance provision by commercial banks.

DFIs have their own limitations, including non-alignment of funding windows and practices to the transformation agenda of government; a general lack of political will, arrogance, ignorance and aloofness of the bureaucracy; policy rigidity, inflexibility and bureaucratic red tape, resulting in unresponsive turnaround times.

How can government assist in transforming the industry?

The industry will require a lot more political will, strategic intent and consistent roll out of transformative programmes that unapologetically seek to advance the course of a black African, youthful entrepreneur.

In order for this to happen there has to be repositioning. Public sector procurement should increase set asides for empowered entities – the popular subcontracting model being used currently is inadequate. DFIs should revise their policies and funding models to align them to the needs and circumstances of empowered entities.

Government contracts awarded to competent empowered entities should guarantee automatic funding by an FDI. Public Education Sector and Skills Development institutions should pay particular attention to recruitment and training of technicians and thedevelopment of curricula and programmes that will ensure the creation of a huge pool of black African technicians.

Alongside these initiatives, government should seek ways to transform the Distribution Company (DC) tier and force the industry to open this level up to ownership by majority black African-owned enterprises.

In the final analysis, OEMs should be compelled to demonstrate a willingness to progressively increase localisation through assembly plants, sourcing local materials and eventually manufacturing.

Where do you see SBD in five years’ time?

SBD is willing and has demonstrated in the few years of its existence, its commitment towards the transformation of the industry, the development of black African entrepreneurs, thereby disrupting the status quo and revolutionising the IT industry.

SBD sees itself in the next five years gaining a decent market share, a distribution license, as well as a network of empowered associate partners in the industry. And having a countrywide footprint!

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WOMEN IN BUSINESS

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REBOOTING THE ECONOMY DEVEN GOVENDER, CEO of LionPride Investments and Agility Fund, unpacks a plan of action for South Africa to recover from the devastating impacts of state capture and Covid-19

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very 75 to 100 years, an event occurs that will forever define how generations to come live. This is our Black Swan event. According to Ray Dalio (legendary hedge fund investor) we are entering a global depression, not unlike what the world experienced in 1929 (hopefully cushioned by the various monetary and fiscal initiatives by the various governments). Many would say this is self-inflicted, i.e. this was not a systemic failure of capitalism but a choice of lives over livelihoods. How we react will largely define how well we emerge from this.

Nothing will be the same again, hence we cannot go on with business as usual.

South Africa is entering a particularly difficult period. The news of the recent downgrade has been largely overshadowed

by Covid-19. Generally, it takes between 5-7 years to get back to investment grade status in the best-case scenario, and at worst between 10-13 years. Austerity will be called for, as the country tries to recover from the economic remnants of state capture and Covid. We will move into an era where, of the people that are capable and willing to work, we have

more people unemployed than employed.

Contraction of the GDP by 10-15%, increasing poverty and state dependence, which will lead to increasing levels of crime and a much more autocratic state as the will of the people is suppressed to regain control.

The worst-case scenario for Covid-19 is that we will need to manage with the potential infection of the disease for many years to come (much like HIV-Aids) until a vaccine is developed, manufactured and distributed to most of the world’s seven billion inhabitants.

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ECONOMY

It is likely that the rich countries will get access sooner than countries in our geography. We shouldn’t be talking of post-Covid, but rather post-lockdown where we thrive in a world of Covid.

INCUBATORS AND ACCELERATORS South Africa has hundreds of business incubators and accelerators. In an ideal world, these should be creating new companies which create jobs.

Unemployment is at an all-time high, so this has not worked. Again, we see corporate South Africa gaming the system by allocating billions of rands to enterprise development (approx. 3% of net profit after tax) to get BBBEE points, with little or no concern for the outcomes. Can corporate SA do this better? (That’s a topic for another time.) Local incubators and accelerators (not all, there are a few which create entrepreneurs) have become nothing more than training factories where a key measure is “bums on seats” (an input measure) rather than number of jobs created (an output measure). Young participants have also been gaming the system, moving from one incubator to another. I’ve come across some young men that have spent 18 months with three of the incubators with our large banks. They get free Wi-Fi, coffee, office space and some general skills. Have they created jobs… no!

CAN ANYONE BECOME AN ENTREPRENEUR?

If you ask this of professors, teachers or self-help gurus, the answer is a 7-step process or a certified diploma, then you’re good to go. I have taken a contrarian view to this and believe that a very small proportion of us are destined to be entrepreneurs. Having a good idea or a glossy business plan with complex looking graphs and tables does not make you an entrepreneur. Your ability to execute that plan does get you on the road to entrepreneurship. The key is the steely inner resolve to believe in yourself when no one else does, psychologists call this “a high internal locus of control”. There are a number of tests on the Internet – take it honestly and if you score highly, you will have a chance of success. You also need to deal with accountability, financial stress and uncertainty, trust, work-life balance

(no such thing in the life of an entrepreneur) and loneliness (this is also a topic for another day).

CREATING A “START-UP” NATION Start-Up Nation, a book by Dan Senor and Saul Singer recounts “how a tiny, controversial, politically isolated country like Israel manages to be one of the world’s creative hubs with more startups, venture capital and new technology than entire continents”. Some of the key takeaways for me were the culture, role of early responsibility young people got in the army during conscription, lack of formal hierarchy in the army (everyone has a nickname), strong networks and government support. The cultural aspect can be summed up with this joke: A journalist approaches a group at the fringes of the World Economic Forum and asks, “Excuse me gentlemen, what is your opinion on the shortage of meat supply?” to which the American asks, “What’s a shortage?”, the Chinese man asks, “What’s an opinion?”, the Russian asks, “What’s meat?” and the Israeli asks, “What’s excuse me?”.

South Africa can create a start-up nation.

As a country, we need to acknowledge that jobs will come from SMMEs and new startups. Over the past 30 years, start-ups have dominated the world, from Microsoft and Apple to Google, YouTube, Facebook, Tesla, Space-X, Uber, Airbnb, and the list goes on.

These companies have created millions of new jobs all over the world.

INGREDIENTS FOR A START-UP NATION We’ve seen that throwing good money after bad, is not the solution, so we need to be careful to get the right players involved. ✔ Selection of participants – a simple assessment of the steely determination discussed earlier ✔ Creating support networks – not just an organic process but a very deliberate process with intended outcomes ✔ Eliminate the formality – the professor is not the custodian on what makes an interpreter when he or she has never started or run an organisation ✔ Create a culture of problem solving – teach thinking skills and collapse the traditional hierarchies

Over the past 30 years, start-ups have dominated the world, from Microsoft and Apple to Google, YouTube, Facebook, Tesla, Space-X, Uber, Airbnb, and the list goes on.

These companies have created millions of new jobs all over the world ✔ Collaborative forums for start-ups and corporate SA ✔ Access to funds: • Corporate SA, be more discerning on how you allocate ED by looking beyond compliance to value creation.

• Government needs to cut away the red tape and nepotism, and focus on the setting of policy within Treasury, DTI and Small Business.

• Pension Funds, the equity markets have not delivered the value to investors in recent years. Regulation 28 allows funds to allocate capital to alternative investments. SA funds under management equate to almost R8-trillion (US$500-billion).

A mere 0.25% (that’s a quarter of one percent) will provide R20-billion for venture capital. Pension fund managers and trustees need to ask themselves the question in their quest to preserve pension capital, what kind of country will those pensioners retire in if nothing is done now!

DEVEN GOVENDER Questions? deveng@lionpride.co.za

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BUSINESS INSURANCE, PANDEMICS AND BEYOND Parametric insurance could form part of the solution to offer businesses protection when risk-based events are beyond the ambit of traditional insurance, says VERNON SUBBAN

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usiness interruption insurance – the big hero of risk management and business continuity plans, the business lifeline to cover revenue losses in the time of an abrupt shutdown of business – does not cover losses incurred due to the national lockdown instituted to curb the spread of Covid-19.

Many businesses in South Africa and around the world found out that if a business premises remains habitable but only shut down for fear of spread of the coronavirus, then the physical loss requirement of the policy is not met: there is no cover. That their business interruption policy is a standard one that

responds to physical damage typically caused by fire, flood or storm and not pandemics.

The Financial Sector Conduct Authority (FSCA) has confirmed this, however, if specific pandemic/notifiable/communicable disease extensions to standard cover or contingent business interruption policy

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INSURANCE

(insurance cover for major supplier or client who is forced to close) exists, then the insurer will have to honour the claim. Some major insurers still hold firmly that the lockdown is not a trigger for cover even with these extensions of business interruption cover. The tension between businesses and the insurance industry continues to mount.

Court action and rulings are underway at time of press here in South Africa.

Insurers will be guided by the terms and conditions of their contracts with policyholders but claim that it is not viable to offer pandemic coverage within standard Business Interruption Insurance policies.

It would be unaffordable as premiums would be just too high. Following the SARS outbreak of 2003 and the Zika outbreak in 2015, insurers changed their policy wordings both in terms of exclusions and extensions of infectious/notifiable diseases to their business interruption insurance policies.

THE WAY FORWARD Experts have predicted the following: • New legislation being enacted requiring government to assist with future pandemic losses from an allocated fund. Like with post 9/11 terrorist attacks, insurers chose to exclude terrorist risk from policies altogether or offered such cover at such an exorbitant premium, making it unaffordable. This prompted the American government to introduce the Terrorism Risk Insurance Act (TRIA) of 2002 and shared the losses with the insurance industry.

• Government may also propose to extend the mandate of the South African Special Risks Association (SASRIA) to cover pandemics, as its current risk cover includes riots, strikes, terrorism, civil commotion and public disorder.

CAN PARAMETRIC INSURANCE HELP? What is parametric insurance?

Parametric insurance may be able to form part of the solution to offer protection during pandemics, to address the business interruption coverage gaps in property insurance policies mentioned above.

It operates on the premise that following the trigger of a specific catastrophic event, a pre-established payment is then

automatically issued to the insured party.

The policy was originally developed to absorb business revenue losses from low frequency, high severity natural disasters like earthquakes and hurricanes with specific Richter scale and wind speed readings, serving as metrics respectively to trigger cover. These readings would have to be provided by independent, verifiable third-party organisations, for example, The South African Weather Bureau.

The coverage has evolved since inception in the 1990s to include more diverse business interruption losses. Vineyards can now be covered after interruption from unusual frost depth, promoters of sporting events and outdoor concerts would use parametric insurance to cover losses due to cancellation, with rainfall volume used as a trigger for cover.

It was only in 2018 that a specific product for pandemics called PathogenRX was introduced into the market abroad and did not sell well, if at all.

It can be gathered that parametric insurance products are invaluable when risk-based events are beyond the ambit of traditional insurance.

The positives of parametric insurance If the stated type of business revenue loss occurs from the triggering metric/ measurable statistic, there is certainty that payment of the claim would result.

There is no lengthy or disputatious claims process like with traditional insurance.

All information is evident at the outset to both parties, resulting in a swift and seamless payout. Insurers are able to use blockchain ledger technologies which in the event of a metric trigger, the smart contract will pay out with limited human involvement. Which is what is needed right now. The decision to choose parametric over traditional insurance would be a balance of factors. The swift claims settlements and affordable premium will tower over.

Shortcomings of parametric insurance Business owners and risk managers must wrangle with the possibility of the triggering metric – which could be a certain level on the Richter scale, rainfall up to a certain amount and so forth – not reaching the stated level to initiate a payout.

Some may rather deal with the all or nothing proposition of parametric insurance for future pandemic risk transfer, as traditional insurance is unlikely to exclude property damage to trigger Business Interruption coverage or remove their infectious/ notifiable disease exclusions. Payment sums do not cover the extent of the loss, like with traditional policies – rather an agreed-upon sum based on the expected loss resulting from the trigger event is paid out.

RISK MANAGEMENT The coronavirus outbreak will provide an important source of data to help insurers get a better handle on pandemic risk and develop a broader range of products in response.

This can be paralleled to developments in cyber insurance in the past few years, which has gained traction following the influx of cyberattacks on businesses.

Now would also be the best time to ensure that proper cyber insurance coverage is in place as working remotely is the new norm and opens up new vulnerabilities in business’ IT systems. Directors’ and officers’ liability insurance will also have to be reviewed as directors and officers face reporting and disclosure obligations, and solvency issues, during fast-changing times, among other setbacks. Business insurance will always be part of a sound risk management programme.

The Covid-19 pandemic has served as a strong test of a business’ contingency measures and internal structures to ensure survival and adaptability against so much volatility. We can only prepare as best we can.

VERNON SUBBAN Questions?

Vernon@subban.co.za

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BUSINESS LEADER

WOMEN ARE SUCCEEDING IN MINING THABILE MAKGALA, Executive: Eastern Limb at platinum miner Implats, reflects on the role of women in this male-dominated sector and the transformations taking place for gender parity

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ining has traditionally been a maledominated industry, but no more.

Thabile Makgala is one woman who is disrupting the status quo and championing women in mining.

Thabile has nearly two decades of experience in the mining industry under her belt, culminating in her current position as an executive at Implats, where she oversees two operations on the Eastern Limb of the Bushveld Igneous Complex in South Africa, with about 7 000 staff.

But she is more than just a women who has succeeded under near impossible circumstances, she is also the chairperson of non-profit organisation, Women in Mining South Africa (WiMSA), where she advocates for women like herself who wish to take up the challenge of a career in mining.

In fact, in 2018, Thabile was selected as one of the Top 100 Global Inspirational Women in Mining by Women in Mining UK. She has also been invited to talk at the African Mining Indaba, Joburg Indaba and Junior Indaba and shared the stage with various captains of industry.

Thabile says that she became passionate about mining from the day she first set foot underground, especially because she has been the first female in the roles she has taken on. Her struggles in this regard is what spurred her on to join WiMSA, which offers much-needed support and mentorship for women in the industry – all through sponsorship and time volunteered by professionals with knowledge to share.

The NPO is also involved in creating

opportunities for women to network with industry colleagues, participating at events at schools and other institutions to educate the public about careers for women in mining, and working with legislation to ensure the framework encourages a workplace which allows for female mining professionals to flourish.

Although the lack of female representation is a global problem, it is particularly problematic within the mining space in South Africa, which lags behind other sectors and mining jurisdictions in the country.

Which is why WiMSA is such a vital resource.

In South Africa, the Mining Charter stipulates that mining firms must have a certain representation of women in their organisations, which is making a difference

to the landscape of the mining industry.

But Thabile says it is lacking and we still have a long road ahead of us.

Transforming the mining industry isn’t simply about attracting women and getting them excited about the possibilities and opportunities it has to offer, it’s also about finding ways to reduce on-the-job challenges, in order to retain their interest in the field. There needs to be structural and administrative change, but without a change in attitudes – especially of top management – towards women in the industry, it runs the risk of losing the limited number of talented women it has managed to draw.

Thabile shares a few truths about her experiences in the industry and some sound advice on how we can keep the wheels of change and development turning…

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BUSINESS LEADER

Q&A WITH THABILE What challenges have you had to overcome being a woman in mining?

I have encountered numerous obstacles while navigating my mining career path. As the first female mining engineering graduate at Goldfields Kloof and Driefontein division (now Sibanye Gold), I soon realised that the industry had not adequately prepared itself to accept women in mining. The industry was not ready. The response to women’s needs (infrastructure, personal protective clothing and policies) was slow and very little was in place to address women’s issues. Regardless of impeccable qualifications, a solid work ethic and the achievement of production targets, my abilities would continue to be questioned and tested.

Is the environment now more conducive to women progressing?

It is encouraging to witness so many women succeed in an industry that has largely been developed for and by our male counterparts.

Although there have been positive steps taken to make the current environment more conducive for women, more deliberate and proactive action is still required.

What should be prioritised to empower women?

Women and men should hold equal representation in the workplace, and mining companies should prioritise and advocate for diversity, inclusion, parity and greater recognition of female leadership within their organisations.

Is mining a transformed industry, or is it transforming?

The mining industry is transforming, and legislation has been instrumental in driving this transformation. I sincerely hope that ten years from now the fundamental elements such as empowering, caring, showing respect, connecting and growing our female talent would have been achieved.I hope that the conversation about women, parity and inclusion would have advanced, and that the industry would have made a concerted effort to transform, without the need for legislation.

What innovation will be beneficial to the mining industry?

Data and the analytics will prove to be the competitive advantage for mines of the future. Converting conventional mining practices to lower-risk mechanisation and automation is key for the sustainability of the South African mining industry.

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Technology enabling healthcare of the future.

ICT INFRASTRUCTURE, ARTIFICIAL INTELLIGENCE AND ROBOTICS

Info@ceos.co.za www.ceos.co.za 0861 111 231

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5 FEMALE-OWNED SMALL BUSINESSES MAKING IT BIG THE SMALL BUSINESS SITE highlights a handful of the many women breaking through the glass ceiling of the small business space

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his Women’s Month we took a step back from the harsh realities of lockdown to focus on something positive and inspirational. We are fortunate to have thousands of innovative and strong female merchants who have made a name for themselves in the South African ecommerce space by selling beautiful and valuable products that are making a positive impact on the lives of their customers.

Below are some of the female-owned businesses we should be celebrating not only during Women’s Month but all year round…

BLACK BETTY DESIGN Black Betty is a jewellery and piercing studio that was founded in 2012 by South African designer Kristin Weixelbaumer. Their mostly female team inspires their unique designs which use natural hand-cut gemstones and precious metals. Each piece of jewellery is wholly unique and Black Betty ear curation is tailor-made to each individual.

Black Betty has physical stores in Cape Town and Johannesburg as well as an online store.

“As the world changes around us, more and more businesses turn to online platforms. It’s therefore important to make sure your online presence is just as strong as your physical store presence – and accurately and honestly represents

what you are all about,” said Kristin.

When asked about what Women’s Month means to her, Kristin noted that it’s a time for reflection. “Specifically, on how much we as women have overcome, both in our personal and professional lives – and where we are headed to.

If it were not for the women of yesterday striving for better, I would not be where I am today – and it is our generation of strong, successful women that continue to strive for equality and for better – that will change the future for the next generation.”

MACRO MIXES Macro Mixes is a health food company that was founded just over two years ago by Maxine Schuiling. The company specialises in delicious and healthy high protein, sugar free and calorie-controlled baking premixes, instant protein breakfasts and protein pantry items.

Macro Mixes has an easy-to-use online store, and also sells their ready-to-make food products in select retail and other online stores.

“It has been a wild ride, from working at my dining room table to moving into our second office space in July, and it has been nothing short of both exhausting and wonderful. There has never been a more opportune time to start an online business, the demand is there as well as the support,” said Maxine.

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WOMEN IN BUSINESS

“We need to own it and take up space, and thus set an example for other women to do the same. If you want to uplift women, then show the world how high they can go!”

Maxine believes that Women’s Month is a time where we recognise how capable and worthy all women are.

“Too often we play it small to be liked, sweet or relatable but that’s nonsense.

We need to own it and take up space, and thus set an example for other women to do the same. If you want to uplift women, then show the world how high they can go!”

KNUS KNUS is an online platform that was cofounded by Lizelle de Villiers to sell quality crafted homeware and furniture. Since their inception in 2017, KNUS has over 8 000 bespoke locally handcrafted decor and furniture items carefully selected from around South Africa all on one platform.

“Working with over 100 independent designers and makers, the product comes straight from the source and we are truly a one-stop shop for everything you need to make your home stand out from the crowd,” said Lizelle.

To Lizelle, Women’s Month is a there to celebrate the beauty and force of women across cultures and borders. “Women are the mothers of our homes, our families and our nations. Whether it is a stay at home mom managing the home or the career lady leading a large company, women lead with passion and from the heart. More and more women are taking various positions previously not traditionally reserved for women and Women’s Month is a time to remind all aspiring women who they are and that the possibilities are endless!”

E-CLASSROOM Natalie Wood founded E-Classroom in 2011 as the first digital education platform in South Africa, in response to a demand for good quality educational resources.

It was at the time when the curriculum changed from OBE to CAPS and she saw

an opportunity to help teachers with their planning and content.

“We were the first digital platform in South Africa to do this and it’s been a great success, although it has been tough.

Competing for funding against my male counterparts was by far the hardest! I had to bootstrap the business to get to where we are today – but I’m not complaining!

We now have over 300 000 members, have recently launched our video lesson platform and our online school enrolments start in September. It’s been worth the hard work!” said Natalie.

According to Natalie, Women’s Month is a special time to celebrate the success of women around the globe and their contribution to what they do for society.

“It creates awareness about what they have achieved and what they continue to accomplish.”

UNTANGL. HEALTH FOODS SIMPLIFIED

Lesley Scott co-founded Untangl with her brother, Andrew, as an online health foods store where customers can easily find, understand and order the right products from trusted brands for their dietary preferences. The online store was launched only recently during lockdown to help people eat more healthily.

“Launching in 2020 may seem a little odd, but lockdown gave our team the capacity to create this offering and we also believe that now, the importance of health and healthy eating is more appreciated than before. Each person has their own healthy eating journey to walk and we’re excited to be a part of that,” said Lesley.

Lesley believes that Women’s Month is a chance to recognise the women in our lives.

“And acknowledge just how much they enrich our lives. For me, it’s not so much the celebration, but more the ‘I value you’ that counts.”

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GENDER-BASED VIOLENCE: THE SECOND PANDEMIC BUSISIWE NXUMALO, LGBTIAQ+ activist and University of Cape Town Alumni, sheds light on using the interconnected nature of race, class, gender and sexual orientation to end injustice and oppression

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GENDER EQUALITY

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n 2016, a report from the World Health Organisation (WHO) stated that “one in three women will experience genderbased violence in their lifetime, and many of these will be repeated incidents of violence”. A United Nations (UN) report stated that “the place in which a woman is most likely to be murdered is in their own home by people they know or their partners”.

The reports are terrifying. Gender-based violence has escalated to a point in South Africa where it has been declared as a pandemic second only to the Covid-19 virus.

Every day women go missing, are killed or raped. It seems war has been declared on women, children and gender minorities in this country. It’s a lived reality for millions and cannot continue.

“One in three women will experience genderbased violence in their lifetime, and many of these will be repeated incidents of violence” When it comes to issues of injustices, it seems that a hierarchy has formed. Race is always the centre of attention and less attention is paid to class, gender and sexual orientation. This is the wrong way of going about fixing the current issues at hand as it will create further problems in the future.

How do we address the triple discriminations against class, gender and sexual orientation? A good starting point is to realise that they are interconnected.

In 1989, the civil rights advocate Kimberlé Williams Crenshaw coined the term intersectionality, which is described as “the interconnected nature of social categories such as race, class, gender and sexual orientation and how they apply to any given individual or group “. Intersectionality explains how the multiple sources of oppression operate together and exacerbate each other.

Most often, it’s women who face triple oppression when their race, class and gender intersect.

Here’s an example. It is commonly known that black, poor women are oppressed in society. A double injustice. Well, add sexual orientation and the picture gets worse: black, poor women who are also queer are more oppressed. The injustice in that case is three-fold. Additionally, it intersects with other types of disadvantages which is why we need to challenge racism, homophobia and any other form of intolerance.We need to use the concept of intersectionality as a tool to begin to unpack the obstacles to a more egalitarian society. One of those obstacles is the current assumptions created by capitalism which place people of a certain class, gender or sexual orientation above others.

Capitalism, as it stands, is a patriarchal system – a misguided understanding that straight, white men are at the top of the pecking order. This long-standing fallacy is affecting socialisation and society as a whole.

It’s been a problem since the dawn of industrialisation. Capitalism has historically been skewed towards men. Men are viewed as the producers in such a society – the so-called breadwinners – a reputation which makes them, according to a system that values output and growth above all else, indispensable.

Women, on the other hand, don’t figure in this equation. Women are seen as the carers, not the providers. Although there have been steps in the right direction, a woman’s place is still in the kitchen, not the workplace. Women are expected to look after the men who do the work.

They are seen as less than, and suffering because of it.

Women are constantly undermined in the workplace, cultural bodies, religious organisations, the home environment and society at large where the harm is not only professional, but also physical. Genderbased violence is a cause and consequence of gender inequality. Toxic masculinity is one of the biggest contributors to genderbased violence and the lack of tolerance for one another stems from deep ignorance. This unfair treatment has been taught – and if people are able to learn, they can also unlearn.

Being an individual who does not perpetuate violence is not enough.

We need to do better.

We need to understand the issues and to better address them We need to liberate women economically to win the struggle against gender-based violence. We need to empower women by giving them a voice. The work that has been done by activists in South Africa in this fight against gender inequity should not be taken lightly. It also should be a norm that people are demonstrating to call for an end to the inequalities that exist.

Serious action needs to be taken in the form of changing legislation and having more serious penalties for perpetrators.

Women’s rights are human rights and we have a great responsibility as a collective to make the world a better place. Globally it is up to us all to be working towards ending gender-based violence. In the words of South African women’s rights icon, Fatima Meer, “Regardless of how many years we have spent in this life, we must get up and shout.”

Passively going about our lives not taking action is of no use. Being an individual who does not perpetuate violence is not enough. We need to do better.

We need to understand the issues and to better address them. We cannot change outcomes unless we understand how they came about. We need to speak out more; support efforts to empower and address the gender inequality more.

We need to get to the root causes of the violence and tackle them head on.

This will only be achieved through collective action, as it’s a societal issue. We have the power and agency to do something.

Enough is enough.

BUSISIWE NXUMALO Questions? businxumz@gmail.com

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LABOUR LAW

THE COMPLEX BUSINESS OF LETTING GO OF YOUR LABOUR FORCE Some businesses have caved under huge financial pressure caused by closures during the Covid-19 lockdown. CLEMENT MARUMOAGAE offers advice to those still standing, about the retrenchment process, should they need it

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he global pandemic of Covid-19 has had a devastating impact on almost every sector of the economy across the globe, leading to many businesses experiencing financial and operational challenges. There are businesses that have shut down because they are unable to withstand the Covid-19 economic pressures, leaving many employees at a loose end.

There are also businesses that will continue to operate but are considering retrenching employees because they cannot afford to pay salaries – such businesses are just not generating enough income to be sustainable.

It is of utmost importance that companies adhere to the laws and procedures that should be adopted if they wish to retrench employees during Covid-19. During these times, retrenching employees is not merely about issuing a notice to terminate the employment relationship on the basis of operational requirements but to follow the prescribed retrenchment procedures to the letter. Moreover, employers are legally obliged to consider alternatives to dismissals. Let’s take a look at the retrenchment process during Covid-19.

THE RETRENCHMENT PROCESS Covid-19 has neither suspended any protection that is generally afforded to employees when retrenchments are contemplated by their employers nor

has it created space for employers not to comply with the statutory requirements when embarking on retrenchment processes. When contemplating retrenchments, employers are advised to equip themselves with the detailed retrenchment procedures laid out in the Labour Relations Act 66 of 1995 (LRA).

In South Africa, retrenchments are generally known as ‘no-fault dismissals’ occasioned by the employer’s economic, technological, structural and similar needs.

In other words, employees are not dismissed for any conduct or omission relating to their employment such as misconduct or incapacity, but activities which are mostly beyond their control. Covid-19 retrenchments are usually justified on the basis of the employers’ economic needs.

It is, however, important for employers to note that when retrenching employees, they must comply with the procedure laid out either in section 189 or section 189A of the LRA, depending on the size of the business and the number of employees who will be affected by the retrenchments.

Section 189A of the LRA applies to employers who are employing more than 50 employees and contemplate retrenching at least 10 employees when 200 or less employees are employed; retrenching 20 employees when 200 to 300 employees are employed; retrenching 30 employees

During these times, retrenching employees is not merely about issuing a notice to terminate the employment relationship on the basis of operational requirements when 300 to 400 employees are employed; retrenching 40 employees when 400 to 500 employees are employed; or retrenching 50 employees when more than 500 employees are employed. The employer must give notice of termination of employment and a facilitator must be appointed in order to assist the parties to engage in meaningfully consultation, particularly when either the employer or the trade unions requested facilitation.

There are time periods relating to the process of facilitation. If the employer decides to proceed with retrenchments before the expiry of the facilitation period, employees can embark on a strike action.

If the employer does not comply with a fair procedure, employees may refer the matter to the Labour Court in order to, among others, compel the employer to comply with a fair procedure or interdict or restrain the employer from dismissing employees before complying with a fair procedure.

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LABOUR LAW

The Labour Court in SASBO v Standard Bank of South Africa (2011) 32 ILJ 1236 (LC) para 29, held that section 189A procedure was introduced as a short-term preventative measure aimed at pro-actively fostering proper consultation. As such, it is important that consultation is not merely done as a compliance mechanism aimed at arriving at a predetermined outcome.

Consultation should be a process wherein employers and employees honestly engage each other with a view to jointly develop the most plausible solution, having regard for the challenges faced by the employer.

Section 189 of the LRA outlines the procedure that must be followed when the employer wishes to retrench one or more employees. Employers must first issue a written notice inviting said employees or their representatives to a consultation.

The employer is obliged to disclose in writing relevant information that will make the consultation meaningful such as: the reasons for the dismissal; proposed method for selecting which employees will be retrenched; when will retrenchments take effect and any assistance the employer will offer employees who will be retrenched. The consultation can be in respect of any collective agreement that has been concluded between employers and trade unions or workplace forum or directly with the trade union whose members will be affected by retrenchments. In respect to employees who are not members of unions, those employees should be consulted individually regarding the possible retrenchments.

Employers must allow employees or their representatives the opportunity during consultations to state their case regarding the possible retrenchments and the reasons put forward by employers.

The employers have a duty to duly consider the cases made by their employees or their representatives and respond to those. It is advisable to make these representations in writing so that the employer can also respond in writing in order for there to be a clear record of the proceedings. If there is no criteria agreed to by the parties, the

Consultation should be a process wherein employers and employees honestly engage each other with a view to jointly develop the most plausible solution criteria adopted by the employer for the retrenchments must be fair and objective.

Most importantly, consultation in terms of section 189 and facilitation in terms of section 189A of the LRA are aimed to ensure that employers working together with employees consider measures that can be taken to avoid dismissals.

If dismissals cannot be avoided, consultation and facilitation should enable parties to consider measures that can minimise the number of people who will be dismissed. The parties must be satisfied that the retrenchment is a measure of last resort.

In order to reach this conclusion, consultation parties are legislatively required to consider alternative measures to retrenchments. There are various alternatives that can be considered such as: reduction in salaries and working hours; cutting of overtime work and remuneration; enhancing employees’ skills to match business operational requirements. In South African Communication Union and Another v Telkom SA SOC LTD (2020) 41 ILJ (LC) para 38, the Labour Court held that it is readily apparent from section 189(2) of the LRA that the issue of alternatives to retrenchments is ‘… an important objective for the parties to attempt to reach agreement on’. The court also made it clear that ‘… the obligation on the parities to consult over alternatives to retrenchment is unambiguous. Even if a party has reservations about whether there is a need for retrenchment, it must be prepared to engage in consultations on the alternatives’ (para 40).

THE FINAL WORD Some employers have suggested voluntary resignations in exchange for

prescribed packages and/or voluntary severance packages.

While these are indeed alternatives that can be considered, it is important that employers do not implement such measures in haste without providing employees an opportunity to explore and suggest other alternatives to retrenchments.

It is also important for employers not to use Covid-19 as a viable excuse to retrench where they were all along contemplating retrenching some of their employees. It is important for trade unions and employees who are subjected to retrenchment procedures to adequately utilise both the facilitation and consultation processes to seek as much information from the employer as is reasonably possible, in order to formulate their response to employers’ economic, structural and technological justifications for retrenchments.

Finally, non-compliance with the procedures laid out in sections 189 and 189A of the LRA may render the contemplated retrenchments unfair.

CLEMENT MARUMOAGAE Questions? clement@gaeattorneys.co.za

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Calandra Trading 621 (Pty) Ltd is a Small, Medium and Micro Enterprise specialising in Water Demand Management Solutions, Civil Engineering projects and Project Management.

The company was formed 12 years ago and has seen exponential growth over the years. With a team of experienced and qualified engineers, plumbers and business professionals, we are geared to meet the demands of infrastructure roll out in our country and neighbouring countries.

SERVICES • Civil Engineering works • Water Demand Management • Water and Sanitation • Engineering works • Projects and Construction Management • Water Meter Replacement and installation - Conventional Meters - Smart Metering - Bulk Metering - Zonal Metering - Water Meter Reading

• Water Revenue Management - Restrictions & Reconnections of water supply • On-site leak detections and repairs • Valve replacements & installation • Transportation Engineering • Roads rehabilitation and construction • Plant hire • Pipeline Refurbishment • Wastewater Treatment Plant Refurbishment • Plumbing Services

Contact: 051 430 9050 | Email: info@calandra.co.za Address: 1 Piet Retief, Hilton, Bloemfontein, Free State

LR Mecca Group has been in the industry since 2001. We specialize in Land Rover and Jaguar vehicles. We provide our customers with a one-stop solution. LR Mecca Group has a fully equipped workshop, parts (new & second hand) and engineering department.

We can tackle any issue surrounding your vehicle and assure you that we will solve any problem. We are constantly doing market research to ensure that we provide our customers with the best possible quality and the best prices. As a vehicle specialist, we have the latest diagnostic equipment available.

Our services include: • Suppliers of new engines • Reconditioning of engines • Suppliers of new and second hand parts • Services • Small and major repairs • Diagnostics (Latest technology available) • Engineering Contact Details: 081 397 6404 / (012) 943-5937 sales@lrenginemecca.co.za / admin@lrenginemecca.co.za

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RESCUING COMPANIES FROM THE BRINK OF CLOSURE CLINT VAN ASWEGEN details the business rescue process as a means to economic recovery, job preservation, greater returns for creditors and rehabilitation of a floundering company

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he COVID-19 pandemic has had a drastic impact on the global economy as countries imposed nationwide restrictions on movement and on the operation of non-essential business. The effects will undoubtedly be long-lasting, and businesses will need to carefully consider the options available to them to avoid further financial distress or possible closure.

One option is business rescue. In South Africa, this can be broadly defined as the rehabilitation of a financially distressed company with the appointment and assistance of a business rescue practitioner.

The business rescue practitioner temporarily supervises and manages the company’s affairs, business and property.

It was introduced in the Companies Act 71 of 2008 (Companies Act) and is therefore a relatively new concept in our company law, as the relevant provisions came into effect in May 2011. The procedural side of the business rescue is administered by the Companies and Intellectual Property Commission (CIPC).

THE COMPANIES ACT Chapter six of the Companies Act provides for the rescue and recovery of financially distressed companies in such a manner that aims to balance the rights and interests of all relevant stakeholders.

A company is considered to be financially distressed when, within the ensuing

six-month period, it is reasonably unlikely that it will be able to satisfy its debts when they fall due for payment or it is likely that the company will become insolvent.

The process is either initiated voluntarily by the directors of the company in terms of a directors resolution, or by the various ‘affected persons’ in terms of an application to court on the basis that the company is financially distressed, the company has failed to pay over any amounts owed in terms of the company’s contractual obligations or where it is considered to be financially just and equitable to place the company in business rescue with a reasonable prospect of success.

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BUSINESS SUPPORT

The business rescue practitioner aims to secure the best return for the creditors and shareholders, and it is often considered to be preferable to liquidation The ‘affected persons’ that are able to institute such proceedings include the company’s shareholders, creditors, trade unions and employees and it is important to note that the business rescue process cannot be initiated where liquidation proceedings have already commenced.

A person may be appointed as a business rescue practitioner of a company when they are a member in good standing of a legal, accounting or business management profession. The business rescue practitioner acquires a license from the CIPC to operate as such after they have been nominated by the financially distressed company and they normally charge a fee for their services in accordance with the prescribed tariff.

The business rescue practitioner immediately develops and implements a business rescue plan, which is approved by the creditors and shareholders to the extent that their rights will be affected, to restructure the company’s affairs in such a way that maximises the continued existence of the company on a solvent basis while safeguarding the relevant stakeholders’ interests. Throughout the process there is a temporary moratorium on claims and other legal proceedings against the company and its property, subject to certain exceptions. In cases where it is not financially possible for a company to continue its operations, the business rescue practitioner aims to secure the best return for the creditors and shareholders, and it is often considered to be preferable to liquidation.

The business rescue practitioner has full control of the company in substitution for its board and pre-existing management and may delegate any power or function of

the practitioner to a person who was part of the board or pre-existing management of the company. The business recue practitioner also has the power to remove any person who forms part of the preexisting management of the company.

During the proceedings, the business rescue practitioner is considered to be an officer of the court and has the responsibilities, duties and liabilities of a director of the company as set out in the Companies Act. Despite the above powers of the business rescue practitioners, the directors of the company are not excused from their responsibilities and continue to exercise their duties subject to the authority of the business rescue practitioner. The directors of the financially distressed company are obligated to assist the business rescue practitioner in continuing to operate the business.

CIPC PROCEDURE It is important to adhere to the procedural requirements of the CIPC in cases where the directors initiate business rescue proceedings, as failure to comply can result in a nullity and prevent the company from commencing business rescue proceedings for a period of three months.

The board of a company resolves to place the company in business rescue proceedings if it has reasonable grounds to believe that the company is finically distressed and there appears to be a reasonable prospect of rehabilitating the company. The business rescue proceedings will only commence upon the successful filing of the resolution with the CIPC. Within five days after the resolution has been filed, the company must publish a notice of the resolution, and its effective date, in the prescribed manner to every affected person in relation to the company and thereafter appoint the consenting business rescue practitioner. Such a notice must be accompanied by a sworn statement of the facts relevant to the grounds on which the resolution was adopted. After the business rescue practitioner has been appointed, the company must file a notice of appointment with the CIPC within two business days and transmit the notice of

appointment to each affected person within a further period of five business days.

Business rescue proceedings terminate when the practitioner files a notice of termination with the CIPC or when the court sets aside the initial order to commence the business rescue proceedings.

In cases where the company could not be successfully rehabilitated by way of business rescue, the process may be converted to liquidation.

CONCLUSION In reviewing the business rescue statistics in South Africa from the inception of the relevant provisions in 2011, it is clear that it is gaining popularity as a viable solution for companies in financial distress. It is viewed as an attractive alternative to liquidation and out of the 3 298 business rescue applications filed in the 2019/2020 financial year, only 400 of these applications failed in terms whereof they were converted to liquidation proceedings.

The number of business rescue applications will only continue to increase in the upcoming months and years as a result of the Covid-19 pandemic. While many companies will find themselves in increasing amounts of debt, business rescue has the potential to contribute greatly to South Africa’s economic recovery, as it preserves jobs, provides creditors with greater returns and rehabilitates a company that would otherwise have been forced to terminate their business operations.

CLINT VAN ASWEGEN Questions? cvanaswegen@bissets.com

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SAVING THE SPAZA SHOP MARKET ANDILE NTINGI, founder of GetBiz, unpacks a recent live panel discussion on whether big business should have a hand in small business in SA’s townships

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alk of large formal retailers being allowed by government to spread their tentacles into the spaza shop market is splitting the black business community down the middle.

Two diametrically opposed views on the thorny subject are beginning to emerge, with one camp supporting a

tentative push by white-owned retailers into the spaza shop market and another camp arguing for retailers to be stopped in their tracks before they gobble up the lucrative market straddling South Africa’s townships and rural towns. The issue came under heavy discussion during a live Facebook panel discussion, known as

Lockdown Convo, which I participated in.

The theme of the discussion, moderated by Miso Tini, posed this question: what does it mean for black business if Pick ’n Pay and Shoprite are allowed to enter the spaza shop market?

The panel that tackled the matter of whether these retailers should be allowed

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RETAIL

to operate in the sector also included Nafcoc President Sabelo Macingwane, Gauteng Department of Economic Development official Tseliso Motsimo and spaza shop start-up owner Mxolisi Goodman Buthelezi.

In the camp that entertained the idea of participation of formal retailers in the spaza shop market, either through franchising or partnership with black South Africans, included Macingwane, Motsimo and myself.

Buthelezi was vehemently opposed to big retailers owning spaza shops, fearing that they could end up totally dominating that market.

Although Macingwane favours restriction of participation of formal retailers in the long term. However, there are members of Nafcoc who support short-term, gradual expansion of retailers through franchising of stores owned and operated by black South Africans. Nafcoc members do not want white retailers to expand through corporate stores.

Some form of partnership between spaza shop owners and Pick ’n Pay is already happening in Gauteng.

Motsimo, who is driving the programme on behalf of the Gauteng Department of Economic Development (GDED), pointed out that provincial government was funding spaza shop owners that partner with Pick ’n Pay, which supplies the shops with 60% of stock. Beneficiaries of the programme are also supported with training and technology that help them to efficiently operate the stores.

During the debate, Motsimo revealed that GDED also approached Shoprite to request it to participate in the programme, but the retailer declined to be part of it.

I argued for an introduction of a dual model, whereby the entry of black South Africans into the spaza shop market is facilitated through a partnership between government and formal retailers. After 1994, black South Africans were kicked out of this market following an influx into township and rural areas of foreign immigrant traders, some undocumented and others asylum seekers. Around this time, big retailers also made inroads into this

market, but operated from shopping malls. I am not opposed to big retailers operating in the spaza shop market, provided they expand through franchised stores operated by black South Africans.

But I equally support an alternative entry route, whereby government financially backs establishment of black-owned and -run companies that will roll out franchised stores operated by black South Africans.

In turn, these companies must be utilised to facilitate participation of black players in their value chains from manufacturing to distribution of goods sold by their networks of spaza shops. These black-owned manufacturers and distributors could also be supported through state procurement, whereby they supply goods to hospitals and prisons to enable them to remain sustainable for a very long time.

The panel welcomed pronouncements

by Finance Minister Tito Mboweni that after Covid-19 lockdown, it will be compulsory for spaza shops to have trading permits, bank accounts and be tax compliant. Spaza shops will also be subjected to regular checks by health inspectors following complaints that some spaza shops sell rotten or expired products.

It is estimated that there are between 100 000 and 120 000 spaza shops in South Africa, most of them unregistered businesses operated by foreign immigrants, mainly from Somalia, Ethiopia, Pakistan and Bangladesh.

The failure to regulate the encroachment of unregistered, illegally operated businesses has enabled foreign immigrants to also dominate non-grocery markets such as hardware stores, bottle stores, auto spares, vehicle maintenance workshops, hair salons, panel beaters, internet cafes, and many other businesses commonly found in townships and rural areas.

In most of these markets, black South Africans have been muscled out, with Nafcoc claiming that the non-payment of taxes by foreign immigrants was giving them unfair advantage over tax-paying South Africans.

If the government tightens law enforcement, it will be in a position to collect taxes and clamp down on money laundering and illicit trading.

Furthermore, extensive regulation of informal markets will level the playing field and give locals a chance to re-enter these markets.

The panel agreed that participation of foreign immigrants must be restricted in grocery and non-grocery retail markets, but stopped short of calling for a blanket ban of foreign participation as is the case in countries like Ghana and Ethiopia and many other African countries, where foreign immigrants are not allowed to operate shops.

During the debate, Nafcoc came under severe criticism for allowing township and rural markets to fall into the hands of foreign immigrants and white-owned retailers.

Nafcoc, was once the face of township businesses, but after 1994 neglected its traditional constituency. As the lobby group’s members and leaders were exiting the townships through the front door to integrate with white business establishment through black economic empowerment (BEE) deals, they opened the back door for foreigners and white retailers to take townships.

After the lockdown, this blunder will have to be rectified through meticulous state intervention that provides funding for locally-owned retail ventures and restricts participation of non-South Africans.

ANDILE NTINGI Questions? andile.ntingi@gmail.com

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TECHNOLOGY

MGIBA GROUP: PROJECTING A PATH THROUGH THE 4IR A word with FRANK MOKGOLOBOTO, Chief Information Officer at the Mgiba Group, about the future of South Africa within the context of the Fourth Industrial Revolution

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he Fourth Industrial Revolution (4IR) is the marriage between the physical, digital and biological worlds in ways that expand the utilisation of new technologies: artificial intelligence, cloud computing, robotics, 3D printing, the Internet of Things and advanced wireless technologies, among others.

The merging of these dimensions has ushered in a new era of economic disruption with uncertain socio-economic consequences, thus presenting exponential technological change accompanied by talent shortages, mass unemployment and inequality growth. This makes it vital that businesses take an active role in supporting their existing workforces through efficient systems as well as through reskilling and up-skilling.

This phenomenon redefines the way we work.

The inherent opportunities for economic prosperity, societal progress and individual flourishing in this new world of work are enormous, yet depend on the ability of all concerned stakeholders to instigate reform in education and training systems, labour market policies, business approaches to developing skills, employment arrangements and existing social contracts. Failure to recognise and capitalise on 4IR opportunities, conversely, will pose a considerable risk for African stakeholders. Without attempts to pivot beyond existing models of innovation, entrepreneurship and digital growth on the continent, African businesses risk falling further behind, worsening the global “digital divide” and lowering their global competitiveness.

“Mgiba Group Holdings is deliberately focused on industries that bring about a positive change to the African life.

By providing solutions for Africans

by Africans,” says Group CEO, Rhulani Nxumalo. We as Africans, live through some of the challenges mentioned on a daily basis, and so, understanding the problem as intimately as we do opens up opportunities for us to engineer our own solutions. It is for this reason that we must take ownership of the opportunities the Fourth Industrial Revolution presents us with.

BRIDGING THE DIGITAL DIVIDE Mgiba Group is a collaborative organisation of seasoned professionals with a combined experience of over 20 years across several industries. The group comprises five subsidiaries focused on technology and innovation, human capital solutions, branding, engineering science, construction and property development. They are well versed in the complex dynamics that influence and impact the lives of ordinary South Africans and are invested in providing holistic, customised and relevant solutions through implementing appropriate and considerably crafted methodologies and solutions.

Mgiba is harnessing and developing new and emerging engineering techniques, data science and technologies that reach higher levels of efficiency of production and consumption and expand into new markets.

Through the shared vision of improving the circumstances of the communities they come from, remaining aligned to the Fourth Industrial Revolution Pan African goal,

It is vital that businesses take an active role in supporting their existing workforces through efficient systems as well as through reskilling and up-skilling and providing African-tailored solutions engineered within the natural science, built environment and engineering industries, places them at the point of intersection between the old and the new.

They offer a full range of innovative solutions that integrate and span across various industries. Mgiba is harnessing the transformative power of the Fourth Industrial Revolution through providing future-orientated solutions that have humanity and the environment at their core. By building collaborative partnerships between public and private sectors, as well as offering exceptional services and tailormade solutions that have all stakeholders at heart. Chief Information Officer Frank Mokgoloboto attests to Mgiba Group being “a force driven to pioneer African youth to become global business leaders.” They firmly believe that inclusive economies will champion good business on our continent.

MGIBA’S RECENT SOLUTIONS Omeya Housing This is an infrastructure inspection app which captures any defects and generates reports for the inspecting technician where required maintenance and repairs can be scheduled, actioned and tracked.

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TECHNOLOGY

Without attempts to pivot beyond existing models of innovation, entrepreneurship and digital growth on the continent, African businesses risk falling further behind, worsening the global “digital divide” and lowering their global competitiveness Omeya Water Mgiba has developed a platform that maps water demand across regions and districts within the country. This is currently in use by the Department of Water to optimise and address systematic problems such as water supply to regions, minimising wastage and reducing under-allocation.

T4G The group has created a development programme that operates as a business outsourced HR team for graduate workforce placement with SMEs. Using a combination of technology and face-toface training, modules are developed to be practical and relevant, with learnings directly applicable in the workplace.

Their programme has been designed holistically, assisting with the vital basics of onboarding young emerging talent, as well as upskilling and reskilling to remain relevant. T4G ensures that the business has the right graduates in place – with the right skills – to assist with their career evolution and growth. Therefore, the SME junior team’s skills set remains up-to-date, injecting innovation, creativity and new thinking into the company.

Omeya Occupational Health This is an end-to-end occupational health solution that streamlines Covid-19 professional health screening and surveillance as teams return to work.

This system gives businesses and organisations access to extensive healthcare expertise and cutting-edge bespoke technology.

Mgiba partners with the organisation to manage the post-lockdown risk of starting up a business, ensuring compliance with all legislated occupational health requirements.

Omeya Health Here is an e-health solution that seeks to make healthcare services fully digitally integrated by delivering on the promise of “one file, one patient, any hospital”.

This system is sophisticated, easily deployable and offers customised functionalities, based on meticulously considered key performance indicators.

Integrated into the system are reporting and dashboard tools that provide data insights that enable more proactive decisions to be made, therefore improving overall patient experience and healthcare operations. This enables a central, fully comprehensive and integrated national e-health solution which includes: • e-Patient files – electronic capturing of patient details • Appointment scheduling – appointments scheduled with physicians in advance to reduce waiting times and to optimise physician time allocation • Doctors on call – a mobile app-driven solution used to locate and book nearest specialist doctors in real-time in the event of an emergency • Customised real-time interactive dashboards – precise, real-time view of bed allocation, patient headcount, doctors on call and patients discharged • Customised reporting – custom-built reports to provide insight on data which will steer decision-making towards realising key performance indicators • Biometric access control – for staff access control and patient validation, especially for undocumented patients, asylum seekers and citizens who have misplaced or forgotten identity documents.

Omeya Health’s output produces considerable benefits: a database of evidence-based health care that is facilitated through optimised scarce health care resources, improved planning for health care services and funding, optimised Key Health Care Performance Indicators

(KHCPIs), accurate and timely reporting of KHCPIs and patient/client tracking throughout the public and private health care network.

Improved citizen planning services, accurate ad hoc and crisis reporting inform an improved routine and crisis planning system with referred care monitoring and therefore improved health care services and facilities plan.

IN CONCLUSION Through harnessing the transformative potential of the Fourth Industrial Revolution, Mgiba has successfully developed a track record of futureorientated solutions and built purposedriven tools. Their solutions have changed lives and instantaneously improved functionality within their clients’ operational models and, therefore, enabled them to reach higher levels of efficiency, expand into new markets and compete on new products for a stake in the digitally fluid new normal.

“Unlocking the power within. We’re people serving people. Helping them and each other. Enable each other. Grow each other. And together become the very best they can be. Leaving their mark in their communities, and inspiring others to do the same. Welcome to a new way of thinking. Engaging. And being. Welcome to our world...” affirms Thendo Rathando, MD Mgiba Communications.

Mgiba prides themselves on the distinctive and extensive competencies of their skilled professionals, who are passionate about being active catalysts of developmental change and innovation on the African continent. Their seasoned professionals harbour a collaborative spirit that has delivered positive results and driven forward-sighted change and solutions. Imagine a resilient, relevant and responsible future for Africa through accessibility, mobility and ingenuity.

That’s where Mgiba is headed.

FRANK MOKGOLOBOTO Questions? frank@mgibagroup.com

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COMPANY LISTING

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We undertake the minor work with the same enthusiasm as we do the major work.

T: 0100250286 E: info@greenlightlegacy.co.za WhatsApp: 0760814584

Lazarus Developments cc is a provider of professional development co-operation services. Our solutions aim at improving the quality of life and living conditions for the people in South Africa.

Our technical assistance practices are: Monitoring and Evaluation, Local Economic Development and Business Development.

We are a Level 1 BBBEE contributor.

For more information contact Sam Lazarus 0837763007 or sam@lazdev.org

LILIBARA PROJECTS (PTY) LTD is a black-owned multi-disciplinary consulting firm made up of

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the requisite skills, experience and expertise in planning, engineering, project management,

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SCHOONOORD DRY CLEAN & LAUNDRY CC We offer a wide variety of services: Dry cleaning and laundry services Beverages (eg. cold drinks) Sewing clothes Printing (embroidery machine) Shoe components (eg. polishes and solders) Printing number plates Typing CVs and photocopying Car wash Selling bulk airtime 91 Main Road, Schoonoord, 1124 Tel: 013 260 1030 • Email: info@sdcl.co.za www.sdcl.co.za

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THE POWER OF THE COMMUNITY IN BUSINESS The road to growth and development for small businesses is paved by the very communities they operate in, explains THAPELO MASILELA

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he role of entrepreneurs has always been that of providing solutions in their respective communities and spaces. We all know that the key to the future of any country’s economy is held within its small businesses. What isn’t well known is that small businesses also hold the key to the majority of socioeconomic challenges in their respective communities.

South Africa has many such challenges which are measured by various economic indicators like the Gini coefficient, GPD and the DGP per capita. Some of the challenges which have really grabbed the limelight in recent months are the number of gender-based violence cases, rape, crime, Afrophobia and corruption.

Research has shown that there is a strong correlation between high unemployment and these types of social issues. The question here is: what role does small business play in fighting these challenges?

The role of small business really lies in who they employ and who they empower through the supply chain process.

Government has also realised this, and it can be seen in the Broad Based Black Economic Empowerment and Affirmative Action Act. These polices not only encourage business to employ Africans, women and youth but also prioritise them in the awarding of tenders to empower women.

There have been many challenges in the implementation of these policies; however, that is a discussion for another day.

The bottom line is that small businesses need to prioritise women and youth in their recruitment processes. The vast majority of the unemployed are women and youth, and this leaves them more dependent on men – not only does this lead to men abusing their financial power to control those dependent on them, but this also enables patriarchy to assert itself on our lives. Businesses should also deal with the pay disparity between women and men doing the same job. This is not to say that men should be side-lined, but rather that as businesses grow, there should be a deliberate effort to employ women and youth. So, the next question is: how do you grow your business in the current times?

Businesses have never existed outside of the communities in which they operate, and communities contribute much to the growth of local businesses. It makes perfect sense then that in growing your business, you should rely on your community while building it up at the same time. Having local supply chains as close to your community as possible means that money remains circulating within that community, and so, as the community develops and grows, so does your business.

Let’s look at a practical example of this: a bread factory that buys its ingredients from a local supplier, packaging material from locals, employs locals, outsources the delivery of the bread to a local ensures that all profits and wages earned by the different stakeholders remains in the community. This lead to not only empowering more people in the community to afford the product, but encourages them to support their community too. Successful communities are those that are able to create an economy among themselves to uplift and support each other.

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SMME DEVELOPMENT

Having local supply chains as close to your community as possible means that money remains circulating within that community

Decentralising the economy is the best way to ensure that inclusive growth is achieved.

I say this because as much as the GDP of the country may increase, this does not mean that the increase is seen by the majority of the country. This contributes to the inequality challenge that we are faced with as a nation. If everyone goes to Gauteng, Western Cape or KwaZulu-Natal for business opportunities and to realise their dreams, then only these three provinces will develop and prosper. Taking your business to your community will create localised development, which in turn creates a supply chain that will empower and benefit the community at large.

Probably the biggest challenge that small businesses face is the financial element, which has been an obstacle for many generations. There are many initiatives from government in the form of Development Financial Institutions to assist where the banking system is not willing to.

This has had its challenges over the years and is still an avenue worth exploring. There is, however, an alternative which can be

used: this is, once again, the community.

Our communities have for many years been able to collect and save money, through avenues such as stockvels and burial societies. There is clearly no lack of ability to raise money; the challenge lies in channelling that money into projects and businesses that will develop the community.

South Africa has a strong concentration of banks. In fact, in February 2019 the big five banks controlled over 90% of the banking market in South Africa. In other countries like China, you will find a bank in every province – those decentralised banks which are not as conservative or pro development have allowed for millions of people to be lifted out of poverty in a relatively short space of time. Having decentralised financial institutions and economies allows for each centre to focus on that area with tailormade business models to suit that community’s needs.

Crowd funding or pooling of resources also allows for businesses to work together to achieve what might not have

been possible or to do it in a shorter time frame. There are many open areas, abounded buildings and factories in many rural areas and townships which could be developed into business hubs or centres that would attract foot traffic directly relating to potential customers. An example where this has been done well is in Vilakazi Street in Soweto, where houses have been converted into restaurants, there are hawkers along the street selling their respective goods, people offering on-the-spot photography services. The street consisted of just a few houses a few years ago and now it has become a tourist attraction which has created hundreds of jobs.

Most of the solutions for the issues we face are in our own hands. However, we need to work together to realise the full potential that we have. The inequality in all its forms – gender, race, patriarchy, abuse of men, women and children, crime – needs to be addressed by us in our own spaces. The concept of Ubuntu applies to businesses and community just as much as it applies to you and me.

THAPELO MASILELA Questions?

Thapelomasilela@hotmail.com

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HOSPITALITY

YOUR HOME AWAY FROM HOME Linger in the luxury of the 7th Wonder Guest House in Bloubergstrand, where the spaces offer the ultimate comforts and the waves and views wash away the everyday stresses of life

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he 7th Wonder Guest House is an acclaimed, multi award-winning guest house with an idyllic setting in Blouberg.

It boasts magnificent, unrestricted views of the famous Table Mountain – the world’s 7th Natural Wonder – historic Robben Island, where icon Nelson Mandela was incarcerated, and the crisp clear Atlantic Ocean. It also overlooks Table Bay, where cruise liners and freight vessels anchor to wait to dock at Cape Town harbour.

The guest house is situated in a safe, quiet neighbourhood and offers luxurious facilities and landscaped gardens with a splash pool and rustic braai area to round it all off perfectly. It can comfortably accommodate between 12 and 14 guests in elegantly furnished en-suite bedrooms ranging from a bridal suite to smaller en-suite rooms, all with coffee stations, fast Internet access, DSTV and private bathrooms.

LUXURY ACCOMMODATION The luxurious upper-storey Table Mountain penthouse, with its breathtaking views of the magnificent mountain and the Atlantic from every angle, offers a spacious bedroom, en-suite bathroom with spa bath and an openplan lounge area with three large sliding doors opening onto the view deck and balcony. Swoon!

The Robben Island suite is another beautiful and spacious executive offering, with equally stunning views of the mountain and ocean, complete with private lounge and outside view deck.

Situated on the ground floor is the two-bedroom, en-suite Dolphin Beach apartment, which has a wrap-around

glass shower structure, where you can wash off the beach sand while marvelling at the beauty of Table Mountain. The spacious apartment offers a well-equipped kitchen, a 12-person dining table and lounge area with comfortable leather sofas and a large flat-screen TV. The apartment also has easy access to the rustic braai area.

Two additional attractive en-suite bedrooms complete the offering. And with friendly, well-trained staff attending to the every need of their guests, you won’t want to leave.

In fact, the panoramic views, luxurious interiors and dedicated staff is what won the 7th Wonder Guest House its multiple awards within a mere two years of operating, including: - Best of Destination South Africa 2019/2020 - Travelmyth (Expedia Group) Top 10 Accommodation for Honeymoon in Blouberg 2019 - Hotels.com Superb 9.2 guest rated graded 2020 - Booking.com Guest Review Awards 2018 (awaiting new award).

THE GUEST LIST The guest house is a drawcard for business travellers, who can return “home” to the tranquil surroundings after a hard day’s work in the city.

The spacious bedrooms – each with its own workstation, fast wireless internet and satellite TV with a selection of channels – and the onsite laundry services available on request, all lends itself to the need for a temporary home away from home.

It also caters for discerning leisure travellers including honeymooners

who appreciate its proximity to the beach, excellent restaurants, shopping centres and movie cinemas in the surrounding area and along the well-known West Coast. Overlooking Dolphin Beach, the guest house is a favourite among kite surfers and other water-sports fanatics.

With two popular golf courses – Milnerton and Atlantic Beach – in close proximity and annual international watersports events such as the King of the Air Kite Surfing Championship around the corner, the guest house is ideally located – far from the madding crowd but close enough to be part of the buzz.

MORE REASONS TO STAY 7th Wonder is situated on the MyCity bus route which provides easy access to the Cape Town CBD, the Table Mountain Cableway, wine routes and other tourist attractions including Cape Town’s popular Victoria & Alfred Waterfront. The Milnerton Clinic and Blaauwberg Netcare Health facilities are also situated close by – within 5-8 minutes away.

The owners take great pride in the sensational natural surroundings and seem to absolutely love what they do: offering their clients a pleasant stay. But it is not only the location and the luxurious accommodation that leaves a lasting impression; their loyal, capable and friendly staff make the stay at 7th Wonder Guest House that much more memorable.

Visit their website www.7thwonder.co.za or send an email to info@7thwonder.co.za.

Alternatively contact Guest House Manager, Mori, on +27(0)83 276 4242 for bookings and information.

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BOOK REVIEW

NOT THE END OF THE ROAD Although the pandemic has brought the tourism industry to a standstill, this much-needed resource by SHANALEIGH HEBBARD offers hope and inspiration

F

light restrictions, stay-at-home orders, interprovincial travel bans – astonishing as it is, these terms and advisories have become a part of our daily lives. The best way, scientists tell us, to fight the virus is to stay put until, well, nobody is really sure.

We live in uncertain times and, yes, even though the pandemic has been particularly tough on frontline workers, spare a thought for those who ply their trade in tourism. The outbreak of COVID-19 has forced the hospitality industry in Southern and Eastern Africa to lock its doors, which has led to millions of cancelled bookings and billions lost in revenue. The people who ensure we get the best treatment – and outlook points – when we visit our region’s most spectacular spots are in dire need of support.

Well, here is some relief. In a world of doubt, complexity, unpredictability and information overload, this resource – Tourism, Travel & Covid-19: The new narrative for Southern and Eastern Africa during a crisis vortex – cuts through the clutter and panic and calmly leads the reader from being stuck in survival mode to inspired action and developing a thriving mindset.

The book provides stories, insights, guidelines and toolkits from 24 leading experts in the tourism and travel industry. They offer hope and inspiration to business owners and their employees, customers, stakeholders and communities in a calm and confident way as they navigate the vortex of the crisis.

Sparked by crucial conversations, it hopes to ignite the rebirth of a new era for tourism and travel; fix the weak links; and build an optimised and sustainable paradigm that is inclusive and beneficial for all in the value chain.

For travellers both domestic and international, Tourism, Travel & Covid-19 explains how Covid-19 has affected the tourism and travel industry. Those planning holidays can read reports and infographics for an overview of what to expect with regards to the future of travel for peace of mind when the floodgates do open, and Africa welcomes you back to explore and enjoy all she has to offer.

Editor, Shanaleigh Hebbard, is the owner of Shongile – Future Self Journeys.

She started her tourism journey in lodge management, was a Key Accounts Manager for an overseas tour operator, with a focus on managing the logistics and coordination of international student travel while synchronising her clients’ needs and desires with involvement in community outreach programmes and participating in sustainable conservation projects. An entrepreneur at heart, she found her niche and enjoys arranging events for overseas authors, thought leaders, business coaches and student travellers.

ORDER INFORMATION Tourism, Travel & Covid-19: The new narrative for Southern and Eastern Africa during a crisis vortex can be ordered from Knowledge Resources Ground Floor, Yellowwood House, Ballywoods Office Park 33 Ballyclare Drive, Bryanston Contact: tel: (+27 11) 706 6009 fax: (+27 11) 706 1127 e-mail: orders@knowres.co.za Available online at: www.kr.co.za

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WE DO IT RIGHT THE FIRST TIME!

Sesom Construction CC is a CIDB, NHBRC registered company with a BBBEE status. The company has capacity, experience and expertise to offer a full compliment of civil infrastructure, general building and other services. The prime focus of Sesom Construction CC is quality and the pursuit of excellence in all areas of our business. As a company that is committed to the development of the country, we aim to render services that will maximise and create employment, including the objectives of broad-based black economic empowerment (BBBEE).

BUILDING AND CIVIL WORKS WE OFFER: Building plans, building works, plastering, roof works, painting, tiling, sealing, plumbing, electrical works, paving, aluminium works and general maintenance.

Tel: 012 753 3654 Fax: 086 719 9716 Cell: 076 952 8029 or 072 511 3054 Email: sesomconstruction2@gmail.com

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Umpheme Development (Pty) Ltd Umpheme House, 16 Imvubupark Place Riverhorse Valley, Durban, 4017 031 569 3700 | info@umpheme.co.za www.umpheme.co.za

Building is not just what we do, it’s who we are.

Whether it’s developments, communities or people - building is in our DNA. The strength of a building lies in its foundation that is why we choose to partner with clients that operate with integrity and honesty, ensuring that our projects are always highly esteemed.

From the first brick that is laid a story begins: a family receives a home; school children are given a space in which to expand their minds; a community has a place to assemble. Closer, wiser, stronger - these are the types of communities that go on to achieve greatness. With each new project we complete we help empower our nation to build a brighter future.

OUR VISION: To see the communities of South Africa thrive through excellence in the development and provision of high quality housing and infrastructure.

OUR MISSION: To put our client needs first in the provision of high quality housing and infrastructure at competitive prices.

OUR VALUES: With integrity and honesty, we hold fast to the ideal of fairness. Our passion for excellence and professionalism empowers both our staff and the lives of those we impact through the developments we build.

SERVICES: • Turnkey Housing Development • Project Management • Subsidy Administration for Government Grant Housing • Sales Administration for Affordable and Middle-Income Housing • Community Social Facilitation • Project Feasibility Studies • Construction

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