Business Update Issue 23 by Yes Media

BUSINESS

A publication for progressive business

AFRICAN MINING INDABA BACK ON SOUTH AFRICAN SHORES

AUS–SA TRADE RELATIONS Australia and South Africa continue to strike a strong, bilateral bond – on and oﬀ the ﬁeld

IN THE VAAL ZONE The GGDA and Vaal SEZ say ‘Project Phoenix’ will bring jobs and investment to the Vaal region

WOMEN IN POLITICS The WLSA is changing the face of politics with a barrier-breaking new Model Law

THE DAYS THAT MATTER Workers’ Day and Youth Day represent the people with the power to transform our economy

Issue 23 | May 2022

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MULABEATS Mulabeats brings together South Africa’s finest team with vast experience in the creative industry. Mulabeats has become an empire by being the best platform for beats production to showcase their talents and achieve great success. Mulabeats means moneybeats. So, get moneybeats and serenade your space. Mulabeats is for all artists and producers who are interested in showcasing their talent and looking for quality beats production at an affordable price. We offer beats sound from various music genres, films, documentaries, corporate commercials and cater for all types of artists and personalities. Mulabeats’ state-of-the-art equipment enables our producers to record, mix and master music all in-house. Mulabeats recording services are not limited to corporate commercial recordings, we also accommodate individual artists, groups, anthems and church choirs. Mulabeats’ team of professionals also provide training, coaching and mentoring to artists. Mulabeats is inspired by Tsatsawani’s vision of bringing creativity to reality.

For more information visit: www.mulabeats.com

www.mulabeats.com | info@mulabeats.com +27 (10) 597 7811 | +27 (65) 812 8481

Dolian Productions “Dolian Represents Elegant” is an independent record label with the aim to offer industry high-standard facilities and infrastructure, as well as high-performance artist management provisions. Dolian Productions offers high-quality state-ofthe-art music and audio recording services to artists and corporates, around the country and internationally.

The services include voice recording, sound mixing, story and song writing and production, and artist development, among others. We recruit only what we consider to be the best talent and only represent artists who are committed and driven by passion and the desire to succeed. By doing this we believe we will have a positive influence in the South African creative industry and the world at large.

www.dolian.co.za | info@dolian.co.za | +27 (10) 597 7811 | +27 (65) 812 8481

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CONVENOR’S MESSAGE

BREAKING CHAINS AND BUILDING BRIDGES

elson Mandela said, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”

This edition of Business Update is once again packed with interesting articles, designed, as always, to stimulate our thinking and encourage participation in many aspects of our society. The articles cover broad areas of interest and include: the African Mining Indaba; the importance of Workers’ Day; the participation of women in politics; a profile on Minister Gwede Mantashe; South Africa and Australia’s bilateral relationship; the Vaal SEZ; why we celebrate Youth Day; customary marriages and women’s rights; to name but a few. We trust you will enjoy them and find them illuminating. We look forward to your ongoing active participation in the programmes offered by the PBF, confident that together we

can ensure that our engagements will be fruitful and positive. As a final thought, I leave you with a quote from a book by Nobel Peace Prize Laureates Tenzin Gyatso, the 14th Dalai Lama, and Archbishop Desmond Tutu, The Book of Joy: Lasting Happiness in a Changing World, “In the end, generosity is the best way of becoming more, more, and more joyful”.

Sipho Mbele CONVENOR

Convenor Sipho Mbele

Managing Editors Alwyn Marx and Olivia Main

Chief Albert Luthuli House 54 Pixley Ka Isaka Seme Street Johannesburg

Art Director Clare Schenk

PBF Editorial Team Stephen McQueen, Seth O’Dea, Miranda Abrahams-Hermans

Contributors Avuyile Xabadiya, Eileen Dexter, Gita Kamath, Kgomotso Ramotsho, Miyelani Mkhabela, Shonisani Manyaga, Simthandile Kholelwa Myemane, Thapelo Masilela, Vernon Subban

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.

Publisher 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 Printed by CTP Printers

National Sales Manager Jan Weiss

Project Sales Crosby Moruthane Christa Nel

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WE WILL ALWAYS SERVE YOU – TRY US FOR A DRIVE MISSION Do Light Transport (PTY) Ltd offers top-class transport services to its passengers within the parameters of required standards of the industry and in strict observance of the safety requirements of the sector.

ABOUT DO LIGHT TRANSPORT (PTY) LTD Do Light Transport (PTY) Ltd was established 16 years ago by two entrepreneurs as a takeover from the defunct Swangi’s Bus Services. In the evolutionary development of the company to where it is today, the company is currently both male- and female-owned, together offering much experience, from business to financial management expertise, chartering a new vision for a new company that has become a household name in the transport industry within the SADC countries.

Some of the Luxury Buses in the Parking Area

Most significantly in the strategic positioning of the company is the acquisition of new fleet, introduction of new management strategies, sound investment in human resources, comprehensive plans on preventative and corrective fleet maintenance for optimal performance utilization. Central to this is our respect for and special treatment of our customers.

Office staff from left to right: Tsakani Chauke, Khuliso Mukhuba, Teddy Ngonyama, Lavhelesani Muguru, Klaas Mapadimeng and Zintle Rakungulusani

The company has since grown and broadened its horizons beyond daily commuters transport to operating 24 hours and providing mine workers and scholar transportation, and special hire across SADC countries. Based on its growth, the company has established depots in various areas, i.e. Malamulele, Thohoyandou, Tshitereke, Maila, Makhado Town.

CORPORATE SOCIAL INVESTMENT

OUR SERVICES

Do Light Transport (PTY) Ltd is fully involved in social investment by value adding to society within the environment it operates. For this reason it has created the Managing Director Discretionary Fund (MDDF) which contributes by funding a variety of community needs, inter alia:-

• • • • • • •

• Education and training, like - Early childhood development; - Tertiary scholarship; - Computer donations • Disaster affected areas • Sports and recreational creation • Housing for destitute families

Corporate travel Cross-border touring Group travel / touring Daily commuting of workers and ordinary passengers Scholar transportation Mine workers transportation Community social events transportation

The fleet of the company is diversified to cater for the various needs, i.e. semi-luxury and luxury buses as well as commuter buses.

374 Block A, Malamulele Industrial, Malamulele, 0982 P.O. Box 1571, Malamulele, 0982 MANAGING DIRECTOR: MR MUKWEVHO MMBULAHENI RECKSON

mmbulaheni.mukwevho@gmail.com Contact: Mukwevho Reckson

Tel: 015 851 1555 • Fax: 015 851 1200 • Cell: 082 321 0585 • Telefax : 015 516 6858 Reg No.: 2005/001832/07

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CONTENTS 8 COVER STORY

The African Mining Indaba offers a good chance for SA to learn from other mining jurisdictions on how to mine for success. By Avuyile Xabadiya and Shonisani Manyaga

14 GOVERNMENT PROFILE Meet Gwede Mantashe, SA’s Minister of Mineral Resources and Energy.

16 LABOUR Workers’ Day honours the historic achievements of workers and trade unions. COSATU is working hard to keep up the pace.

20 ECONOMY

South Africa has the potential to become an economic and industrial powerhouse for Africa. By Miyelani Mkhabela

24 GENDER LAW Women’s participation in political parties is due for an overhaul in the form of a new Model Law. By Kgomotso Ramotsho

28 INSURANCE The safe arrival of goods in transit can be the difference between success or failure for a business. By Vernon Subban

30 TRADE AND INVESTMENT

36 ESTATE LAW

44 CULTURE

The Australian Ambassador shares why our countries have much to gain from their strong links in the business and government arenas. By Gita Kamath

Special care should be taken when winding-up or assisting to wind up an estate of the deceased to avoid wrongdoing. By Simthandile Kholelwa Myemane

Youth Day recognises the bravery of students who stand up for what they believe in and the power they hold in SA’s future. By Thapelo Masilela

40 FAMILY LAW

Chaos is a gift? by Ebben van Zyl, Andrew Campbell and Liezel Lues turns fear on its head and uses it to thrive instead.

34 GROWTH AND DEVELOPMENT The Gauteng Growth and Development Agency and Vaal SEZ recently announced an exciting new venture to the Emfuleni community – Project Phoenix.

Why is the registration of a customary marriage of vital importance? By Eileen Dexter

46 BOOK REVIEW

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STAY THE COURSE! SA must stick to the ERRP commitments on boosting local manufacturing and promoting aggressive investment in infrastructure – and also, sharpen the implementation of policies and programmes, says ANC Treasurer General PAUL MASHATILE

t was former President Thabo Mbeki who once opined that: “Those who complete the course will do so only because they do not, as fatigue sets in, convince themselves that the road ahead is still too long, the inclines too steep, the loneliness impossible to bear and the prize itself of doubtful value.” These words came to mind as I was pondering the latest unemployment figures released by StatSA. In the fourth quarter of last year, South Africa’s unemployment rate increased from 34.9% to 35.3%. This is the highest unemployment has been since the 2008 global financial crisis. Also of serious concern, is that almost four million

South Africans have been classified as discouraged jobseekers. This brings unemployment, according to the expanded definition, to 46.2%. Furthermore, out of every ten young people, four are not in school, in training or in employment. The situation is dire. We are in a deep crisis. Understandably, this situation has led to calls for a change in the country’s economic policy direction. Some of these calls make the fatal mistake of suggesting that the solutions out of the crisis are simple and obvious. “I do not understand why the ANC, which has a self-interest in staying in power, would implement policies that will make it impossible for South Africans to vote for the party, when the solution to the economic crisis is hiding in plain sight,” writes one prominent economist. Now, any party, and certainly the ANC, is interested in its electability. To suggest otherwise would be false. Perhaps such sentiments, as expressed by the prominent economist, reflect a growing (and understandable) impatience with the direction and pace of South Africa’s economic recovery and reconstruction. In the words of former President Thabo Mbeki: fatigue is setting in, there is a sense that the road ahead is still too long, the inclines too steep and the prize itself of doubtful value. The solution, however, is not to abandon the path we have chosen as outlined in the Economic Reconstruction and Recovery Plan (ERRP). We must stay the course! The ERRP is a product of a broad consensus among social partners at NEDLAC: government, business, labour

The goal is to ensure that such compacts are underpinned by more explicit trade-offs, time-frames, contributions and commitments and community organisations. It outlines a number of reform interventions required to re-ignite growth, investment and job creation. It also seeks to drive an infrastructure-led economic reconstruction and recovery. It further proposed a number of specific sector interventions necessary to rebuild our economy. To give effect to the ERRP, social partners are working tirelessly to strengthen social compacts across various sectors of the economy and society. Ultimately, the goal is to ensure that such compacts are underpinned by more explicit trade-offs, time-frames, contributions and commitments to be made by individual social partners towards rebuilding the economy. Mechanisms to ensure accountability for non-delivery on commitments are also being put in place. It is these social compacts that hold the key to the success and accelerated implementation of the ERRP. Already progress, albeit slow, is being registered in the implementation of the ERRP. This includes efforts to strengthen security of energy supply, the release of

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TG’S MESSAGE

high-speed spectrum, improving efficiencies at our ports, attracting skills and supporting tourism as well as addressing the ease and cost of doing business. A new package of reforms is being considered. Through these reforms, the intention is to unlock the ability of our economy to recover and grow in a sustained, accelerated and inclusive manner. A closer look at the employment numbers released by StatsSA for the fourth quarter of last year, reveals that the largest decreases in employment were recorded in the manufacturing and construction sectors of the economy. The Statistician General, Risenga Maluleke, is quoted as saying that construction has been “depressed for some time” and that the sector has been “consistently losing jobs”. The ERRP identifies strengthening the manufacturing sector – including boosting

local production and procurement – as one of the pillars of economic reconstruction and recovery. Towards this end, industry masterplans are being finalised and implemented in various industries and efforts to boost local procurement and local production are being strengthened. Efforts to enable South African companies to access and move higher up the global and especially continental value chains are being strengthened. Aggressive infrastructure investment is also one of the pillars of the ERRP. More that R1-trillion in infrastructure investments, over four years, is being targeted through the implementation of the ERRP. The drive towards aggressive infrastructure investment constitutes a major component of government’s efforts, in line with the NDP, to ensure that

National Gross Fixed Capital Formation reaches 30% of the GDP by 2030; seen as a prerequisite to achieve a growth rate of 6% per annum. Staying the course means that we must stick to the ERRP commitments on, among others, boosting local manufacturing and promoting aggressive investment in infrastructure. These interventions will, no doubt, help address the issues identified by the Statistician General regarding the declining contribution of manufacturing and construction to job creation and growth. South Africa does not suffer a shortage of policy proposals and programmes. The challenge is implementation. Staying the course, therefore, will also mean sharpening the implementation of our policies and programmes. We dare not fail in this task. Time is not on our side.

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COVER STORY

AFRICAN MINING INDABA BACK ON SOUTH AFRICAN SHORES

AVUYILE XABADIYA and SHONISANI MANYAGA, economists in the Department of Mineral Resources and Energy, believe that African states stand a good chance of developing African solutions through the Indaba by learning from other mining jurisdictions. To achieve this, the Indaba needs to reshape and influence African policy directives that will transform the mining industry to benefit much of the African population

n May this year, South Africa will host the world’s largest mining investment event – the Investing in African Mining Indaba. A platform in which key mining industry players will converge to discuss the evolution of African mining, the just energy transition, and the role of mining in the reconstruction and recovery of the economy in South Africa, Africa, and the world at large. This comes two years after the outbreak of the Covid-19 global pandemic, which disrupted the world’s economies and changed the way of doing business worldwide. In fact, the current global economic environment remains uncertain due to the continuing impact of the Coronavirus. Africa has been affected heavily by these economic shocks and its leaders are still orchestrating its recovery plan.

The mining industry in 2020 employed 451 427 people, excluding indirect employment from mining activities. In the same year, the industry contributed 8.2% (R361.6-billion) to GDP

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The recovery for most countries on the African continent is taking longer than it is in developed economies – in large part due to the slow vaccination rate within the continent coupled with structural challenges embedded in African countries. It is evident that economies that successfully increased their vaccination rate continue to see improvements in their economic activities. Despite challenges, South Africa has also made progress in this regard, as shown by positive Gross Domestic Product (GDP) growth.

THE ROLE OF THE MINING INDUSTRY Over the years, the South African mining sector has played a critical role in the advancement of some of the continent’s biggest economic hubs. For example, in South Africa, during Covid-19, government tabled the economic reconstruction and recovery plan, with mining at the centre of that recovery. Mining was the biggest contributing sector into the overall economy, at 11% of GDP. The mining industry in 2020 employed 451 427 people, excluding indirect employment from mining activities. In the same year, the industry contributed 8.2% (R361.6-billion) to GDP, 3.4% less than 2019 figures, with 11% contribution to GDP coming from goods and services to the mining industry. Despite its huge contribution to the economy, the mining industry continues to experience challenges. Notably, are challenges in the logistical sphere – such as rail, harbour and roads – which has an adverse effect on exports. In Q4:2021, mining was down 3.1%, with the biggest contributors being gold, iron ore and coal, owing to Transnet rail challenges. Mines had to stockpile their produce instead of exporting it. These challenges are being felt across the continent, and at the very least, making it difficult for the continent to trade efficiently with each other. In order for the continent to fully maximise commodity booms, the rail networks and security within our transporting lines should be prioritised

and developed. Progress made in other countries through China’s Belt and Road Initiative (BRI) points us towards one of the strategies we can look to for expansion. It is imperative that we continue to work to change our mining GDP contribution trends in Africa to an increasing trajectory, to mirror other thriving mining jurisdictions such as those in Canada, Brazil and Australia.

Africa remains the number one source of rare minerals such as those used in technology development to date

THE SOUTHERN REGION OF AFRICA The southern region of Africa continues the comparative advantage in Platinum Group Metals (PGMs) through the Bushveld Igneous Complex (BIC), in South Africa, and Great Dyke, in Zimbabwe. South Africa contains the world’s largest Chromium reserves, with coal reserves that could last more than 100 years. The Democratic Republic of Congo is Africa’s leading producer of copper. Accordingly, Africa should consider a move to future strategic metals such as copper, nickel, cobalt, rare earth elements/metals, among others. The Council for Geoscience, which is South Africa’s biggest geoscience research institution, must work hard in assisting other African states, but will need financial resources to help other countries. This will lead to more collaborative efforts in Africa in the mining business. The expansion of South African companies such as Impala Platinum in the region and building of smelters will reduce employment pressure in the country and will also create more employment opportunities for the rest of the continent.

THE INVESTING IN AFRICAN MINING INDABA The Indaba will need to dig deeper to show how best the continent can continue to benefit from its endowment. Africa deserves an equal opportunity benefit from its mineral endowments for the good of the current and future generations. The sector must ensure that people meaningfully benefit from these endowments in terms of actual

shareholding, participation and employment. The delegates at the Indaba will need to share working models on several aspects. Accordingly, some presentations we hope to see are those that describe the experiences of successful countries – information on how they have managed to develop their upstream petroleum industry by attracting and ensuring that exploration of oil and gas in their respective countries happens without any hindrances. We hold a firm view that the discovery of oil and gas on the African continent will be beneficial and will contribute to the African economies. South Africa, Mozambique and Namibia, have all recently announced discoveries of hydrocarbons around their shores, just to mention a few. There can be no doubt that the discovery of these resources will lead to energy security and reduce energy poverty on the continent. Now is the time for African economies to take advantage of the signed African Free Trade Agreement, as with their own natural minerals and energy resources they can solve the much recorded social and economic problems in Africa. Noting that the Indaba is taking place soon after the World Investment Report showed a devastating 35% decline in investment attractiveness due to the Covid-19 pandemic, shoulders need to be put to the wheel to ensure that we attract investment into the economy of the continent. Notwithstanding our challenges, African states stand a good chance of developing African solutions through the Indaba by learning from other mining jurisdictions.

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COVER STORY

To achieve this, the Indaba needs to reshape and influence African policy directives that will transform the mining industry to benefit much of the African population. Africa has proposed an innovative approach to transform economic sectors such as the mining and energy industries, while addressing carbon emissions, economic inclusion and unemployment. The African Mining Vision (AMV) adopted by the heads of states in 2009 at the African Union Summit, seeks to increase investment in energy and mining through policies that will facilitate the following:

■ Negotiation of contracts with mining multinationals that generate fair resource rents and stipulate local inputs for operations; making sure workers and communities see real benefits from large-scale industrial mining and that their environment is protected. ■ Livelihoods and will advance integrated rural social and economic development. ■ Attention to all the stages of the value chain of non-renewable mineral resources, from contracts and licenses for exploration and production to integrating mining with a sustainable development plan.

The Indaba should seek ways to open the path for the continent to withstand the realities of the resource curse. The scramble for Africa was driven by natural resources and, in the main, mining activities were at the centre. As a result, the colonial powers considered Africa as a strategic source for cheap natural resources for their economic development. The scramble has led to a significant number of natural resources in the form of minerals being exploited for the benefit of colonial powers, and in Africa at the expense of indigenous Africans. Despite the rapid exploitation, Africa retains significant mineral reserves in the post-colonial rule.

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COVER STORY

Africa remains the number one source of rare minerals such as those used in technology development to date. The endowment of these minerals in Africa has turned the continent into a hive of mining activities for local and international mining companies, operating on a small and large scale. They process a wide range of high-quality minerals, such as bauxite, copper, gold, diamonds, coal, Platinum Group Metals, and iron. Although the production from small-scale miners remains low compared to the large-scale miners, the impact on employment by the small miners is still significant. Both small- and large-scale mining generates complementary economic activities including merchant operations. This contributes to the gross national products and foreign exchange earnings for the economy. The social and economic benefits of mining also play a major role in the development of technology.

CONCLUSION The Mining Indaba must discuss how smallscale miners can be supported to drive the reconstruction and economic recovery of our economy. There is no doubt that artisanal mining plays an important role in creating employment and as a source of export earnings for countries through the export of minerals. Artisanal mining like large-scale mining has a strong social economic impact, as it contributes to the economic output of and creates economic stability for the indigenous people in rural areas. This shows that artisanal mining is an important factor in poverty alleviation. The Indaba happens when the world is considering realistic energy security issues as well as development of domestic energy sources to power their economies. Africa needs to ensure that the energy transition is ‘just’ and that it caters for the social needs of the people. Transitioning from high carbon emissions to low carbon emissions must not plunge Africa into darkness but rather propel the economies into a growth trajectory.

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MEET YOUR MINISTER OF MINERAL RESOURCES AND ENERGY: GWEDE MANTASHE Speaking at the National Energy dialogue, Minister Mantashe said South Africa needs a discussion on how to balance protection of the environment and development of the economy, to be a great economy again

r Samson Gwede Mantashe was born on 21 June 1955 in Lower Cala village in the then Transkei (now Eastern Cape Province). He started his political career as an activist in the Student Christian Movement. In 1975, he was employed as a Recreation Officer at the Western Deep Levels Mine and, in the same year, moved to Prieska Copper Mines where he served as the Welfare Officer until 1982. Working at the Matla Colliery in 1982, Mantashe co-founded and became the Witbank branch Chairperson of the National Union of Mine Workers (NUM). In 1985, he was elected NUM Regional Secretary. A skilled mineworker and leader, Mantashe was the NUM’s National Organiser from 1988 to 1993; and became the Regional Coordinator between 1993 and 1994.

In 2021, Mantashe achieved a Master of Business Administration (MBA) degree at 65 years of age Photo credit: GCIS

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GOVERNMENT PROFILE

From 1994 to 1998, Mantashe was the Assistant General Secretary of the NUM. He was elected General Secretary at the union’s congress in 1998. He was also appointed the Executive Director at the Development Bank of Southern Africa for two years and served as the Chairperson of the Technical Working Group of the Joint Initiative for Priority Skills Acquisition. In 2007, Mantashe was elected Chairperson of the South African Communist Party and also served as a member of the party’s Central Committee. In December 2007, he was elected Secretary General of the African National Congress (ANC) at the party’s 52nd National Conference. He was re-elected to the same position in 2012. At the ANC’s 54th National Conference, in 2017, Mantashe was elected as the National Chairperson. Following the 6th democratic elections in South Africa, Mr Gwede Mantashe was appointed Minister of Mineral Resources and Energy of South Africa in May 2019, when his earlier portfolio of Minister of Mineral Resources was merged with the energy portfolio. Mantashe has a great passion for education and holds a master’s degree from the University of the Witwatersrand and a Bachelor of Commerce (BCom) degree from the University of South Africa, where he also completed a BCom Honours. In 2021, Mantashe achieved a Master of Business Administration (MBA) degree at the Management College of Southern Africa (MANCOSA) at 65 years of age. He said the MBA required discipline more than intelligence as well as hard work and the ability to meet deadlines. “When you achieve your MBA, you don’t feel the length of the journey, you enjoy

“This country needs a discussion on how to balance protection of the environment and development of the economy. If we get that balance right, we are going to be a great economy again” - Minister Mantashe

the qualification and you go about telling people that I’ve got a new qualification, the MBA,” Mr Mantashe said. “It takes courage and it’s quite an important qualification.” As a result of Covid-19, Mantashe graduated virtually and “received” his degree via his laptop from the comfort of his home. He used his online graduation speech to encourage young people to study. “For young people and other people who want to do it, I would encourage them to do that because it will give them tools of execution, which is what the strength of the MBA is, rather than theory,” he said. In 2021, the Zondo Commission recommended that Minister Mantashe should be probed for corruption after he received security installations for no charge from the facilities management company Bosasa. During his testimony before the state capture commission, Minister Mantashe refuted the claims, saying the upgrades were an entirely innocent contribution from a family friend for a traditional ceremony. In addition, Minister Mantashe was then the ANC’s Secretary General and did not hold any position in government. To clear his name, the minister has indicated he will take the findings of the State Capture Inquiry on judicial review. He hastened to add that his actions should

not be misconstrued as a judgement on the committee’s integrity. “By saying it should be taken on judicial review, I am not saying the commission’s findings should be defied or that the R1-billion invested in it was wasted,” he said. As Minister of Mineral Resources and Energy, Mantashe is acutely aware of the need to balance environmental concerns with economic growth. Speaking at the National Energy dialogue, hosted by the Central Energy Fund in partnership with the Financial Mail and Mkokeli Advisory, Mantashe said discoveries of gas in the Outeniqua basin offshore of Mossel Bay is evidence that South Africa does have gas and possibly even oil resources akin to those significant resources discovered in neighbouring Mozambique and very recently in Namibia. Warning against environmental concerns standing in the way of progress to the detriment of South African citizens, the minister said the Constitution provides guidance for the responsible development of the country’s resources, which still protects the environment. “This country needs a discussion on how to balance protection of the environment and development of the economy,” he said. “If we get that balance right, we are going to be a great economy again.”

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LABOUR

THE WORK AHEAD COSATU asserts that with the struggle for employment and decent working conditions ongoing, Workers’ Day is as relevant as ever

cross the world and in South Africa workers celebrate the 1st of May to commemorate their sacrifices in fighting exploitation, slavery and abuse. Trade union leaders including Vuyisile Mini, who was hung by the apartheid regime, are honoured for giving their lives for the struggles to defend workers and improve their lives. Workers’ Day is a time to recognise the historic achievements of workers and trade unions. Achievements that include winning the right to exist and protest unfair labour practices through strike action. Protests that enact prohibition of child labour, equal pay for equal work, paid maternity leave, protection from the worst forms of abuse, paid time off and the right to a safe working place. It is a moment for workers and unions to reflect on the challenges facing those among their ranks and their families and to recommit themselves for the struggles ahead. The Congress of South African Trade Unions (COSATU) and its ally the African National Congress, together with the Tripartite Alliance, have won major victories for workers over the past three decades. Significant breakthroughs such as the democratic breakthrough of 1994 and the Constitution of 1996, which enshrines the right to unionise, to strike and to work in decent and safe conditions. Progressive labour laws have been put in place that allow for workers to fight for

their rights through collective bargaining; to work in safe conditions; to be given paid maternity and parental leave; and be given paid time off and the opportunity to celebrate public holidays. In 2019 the National Minimum Wage Act lifted the wages of six million workers, who were often paid a pittance. The legislation has benefited 900 000 domestic workers, 800 000 farm workers and millions of workers in retail, hospitality, transport, cleaning, construction and security. Working with government and business during the height of Covid-19 in 2020 and 2021, COSATU ensured the release of over R63-billion from the Unemployment Insurance Fund to help 5.5 million private sector workers who had lost wages take care of their families. This helped prevent millions of job losses. Twenty-seven million unemployed persons currently receive social grants from government, subsidised public transport, free basic education and school meals. The poor receives free tertiary education and subsidised public health care. The progress that has been achieved is plain to see and more is yet to come. Currently, the Compensation of Injury on Duty Amendment Bill is before Parliament. If passed, it will provide workplace injury on duty insurance for domestic workers and make it easier for workers to claim from the Compensation Fund and, so doing, extend their cover and benefits.

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LABOUR

However, much remains to be done to protect workers and improve their lives. The economy is in a deep recession and facing its most difficult challenges in living memory. Unemployment is at an all-time high of 46%. Upwards of 2.2 million workers have lost their jobs since 2020. Millions are highly indebted and have been denied their annual increases. Inflation is rising, as are interest rates. State-owned enterprises are in serious trouble, with Metrorail, Transnet and Eskom performing far below the levels required to take South Africa forward. Municipalities are in financial distress and their workers are sent home unpaid. Government has lost billions to corruption and wasteful expenditure – funds that were needed to build the state, provide relief for the poor and stimulate the economy. Something needs to change and COSATU is working closely with government and the leadership of business at Nedlac to address these crises. The challenges are, however, too big for government or any social partner to fix by themselves. To address and overcome them would require all South Africans to contribute to the solutions, make compromises, and even sacrifices. COSATU has long championed the need for a social compact and is now preparing to engage with government on what needs to be done. The organisation drafted and tabled the Eskom Social Compact at Nedlac in 2020, to help rebuild our most important national economic asset and reduce its debtburden so as to ensure the economy has reliable and affordable electricity. We have worked with government and business to develop the Economic Recovery and Reconstruction Plan with its key pillars which, in addition to the Eskom Social Compact, include rebuilding Transnet and helping save and create thousands of mining, manufacturing and agricultural jobs; fixing Metrorail and get 10 million

workers to work on time; boosting economic productivity; tackling the billions lost to corruption; ramping up local procurement; and mobilising financial resources to stimulate growth. The president’s call for a Social Compact must be premised on progressive principles such as protecting workers and providing meaningful relief to the unemployed and the poor. The focus must be to rebuild the state and tackle the fundamental obstacles to growing the economy. Workers need to be shielded from inflation eroding their salaries. We need to invest in their skills for them to remain employed and find jobs. In addition, the R350 SRD Grant needs to be enhanced as the foundation for a Basic Income Grant, and the Presidential Employment Stimulus needs to be expanded to create at least one million work opportunities for young people. More must be done to rebuild Eskom. Saving and fixing Transnet and Metrorail must be a national priority. Clear turnaround plans are needed for our embattled SOEs, including Denel, SABC and the Post Office. Delays in implementation must be eliminated. Regulation 28’s amendment to allow pension funds to invest in infrastructure must be finalised. The Public Procurement Bill must be expedited and strengthened to provide for a transparent online procurement system for the entire state. The Bill will be a key tool to reduce corruption and wasteful expenditure and ramp up local procurement. The private sector must play its role. Retrenchments must be a point of last, not first, resort. Alternatives to retrenchments must be sought, including tapping into the UIF’s Temporary Employment Scheme. Incentives must be put into place by the banks and government to support job retention and creation. Inequality must be addressed and the apartheid wage gap in the private as well as the public sector must be actively reduced.

Upwards of 2.2 million workers have lost their jobs since 2020. Millions are highly indebted and have been denied their annual increases South Africa has the potential to move from being the most unequal society to an inclusive and modern nation. Its economy is highly diversiﬁed, developed and has great potential. What’s lacking is bold, determined and progressive leadership. Government needs to learn to move with speed and decisiveness. Business needs to embrace the principles of solidarity and compassion. This is what will turn the economy around and ensure that all workers have access to jobs and a decent life. Government and business will ﬁnd a committed partner in COSATU along this journey. The workers of South Africa and their families are looking to us to make a change.

MATTHEW PARKS PARLIAMENTARY COORDINATOR COSATU

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SOUTH AFRICA: AN ECONOMIC AND INDUSTRIAL POWERHOUSE FOR AFRICA South Africa needs an economic growth miracle. MIYELANI MKHABELA forecasts that maximising light and heavy manufacturing is at the source of such a miracle, as it has been for other emerging markets and advanced economies

outh Africa is going through tough times and is realising that the solutions of the past can end up being the challenges of the future. Things can be better than they are, if South Africa prioritises an industry strategy and addresses the prolonged economic stagnation since 2008, the livelihoods crisis and youth unemployment – which is currently above 70% – as well as tackling the risk of state collapse, failure of public sector infrastructure and maintenance, and proliferation of illicit economic activity. The realisation of a capable state and capable human capital demands that the ruling party take the hard decisions of releasing or reducing the old leaders, replacing them with a good mix of young leaders, of fast-tracking service delivery, solving complex challenges to prepare the nation to be attractive to foreign direct

investment, and improving ease of doing business in South Africa. The African National Congress must refocus its primary purpose of economic development and expansion to be inclusive to all people. The ruling party must focus on plans for manufacturing and production that will include multiple industries, as diverse as the future of the automotive industry, chemicals, electronics, renewable energy components, healthcare and textiles. Light and heavy manufacturing has been the foremost source of economic growth and development, jobs and innovation in emerging markets and advanced economies. For sustainability purposes, we need to have maximum economic impact while highly managing environmental consequences. Global primary materials use is projected to almost double, from 89 gigatonnes (Gt) in 2019 to 178 Gt in 2060.

Non-metallic minerals – such as sand, gravel and limestone – represent the largest share of total materials use. These non-metallic minerals are forecasted to grow from 44 Gt to 86 Gt between 2017 and 2060. Metal use is smaller when measured in weight but is predicted to grow more rapidly, and metal extraction and processing is associated with large environmental impacts. The strongest growth in materials use is projected to occur in emerging and developing economies. Sub-Saharan Africa is expected to undergo an economic and materials use growth spurt. Where economic growth rates are projected to be more modest, materials use grows between 1% and 2% per year on average. South Africa must position itself to be one of the leading industrial nations to contribute to the global primary and secondary materials production of 178 Gt in 2060.

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Metals extraction and use have a wide range of environmental consequences, including toxic effects on humans and ecosystems. The overall environmental impacts of extraction and processing of key metals are projected to at least double between 2019 and 2060, mostly driven by the increase in the scale of materials use. Managing economic drivers and environmental consequences are aligned to every industry strategy and South Africa has to align or maintain its position to climate change. The ANC Economic Development and Transformation Committee must further explore a strategy to enhance supply chain connectivity and resilience in South Africa, elevate the country’s position in the global value chain, strengthen investor confidence in the country, and explore new drivers of economic growth and development, with a particular focus on the role of public-private collaboration, innovation and technological transformation. Collaboration can establish a strong research and innovation ecosystem, boost ideas and share resources. The South African economy was already in a weak position when it entered the pandemic after a decade of low growth. In 2019, the economy grew by only 0.1%, partially caused by the resurgence of load shedding associated with operational and financial difficulties at the energy utility Eskom. South Africa’s economic recovery in 2021 is benefitting from the favourable global environment (trade partners’ growth and commodity prices).

However, pre-existing structural constraints, such as electricity shortages, continue to be binding for the medium-term outlook. Economic growth is expected to rebound to 4.0% in 2021. Commodity prices remain important for South Africa, a major net exporter of minerals and net importer of oil, however, strengthening investment, including foreign direct investment, will be critical to propelling growth and create jobs. The percentage of the population below the upper-middle-income-country poverty line fell from 68% to 56% between 2005 and 2010 but has since trended slightly upwards to 57% in 2015 and is projected to reach 60% in 2020. The livelihoods crisis and unemployment remains the leading challenge or risk for South Africa. South Africa ranks poorly in labour market flexibility, encompassing hiring and firing practices, flexibility of wage determination, and poor labour-employer relations. Looking at fast developing nations – China, Vietnam and South Korea – they all have better labour market flexibility and that’s assisting them to attract foreign direct investment currently, and when they’ve equalised, they can reduce flexibility. Foreign direct investment competition in emerging markets forces South Africa’s ruling party and trade unions to provide sustainable development solutions that will make the nation more attractive and transition to the second stage of development, moving from efficiency-driven economies to sophistication and innovation economies.

Global primary materials use is projected to almost double, from 89 gigatonnes (Gt) in 2019 to 178 Gt in 2060 South Africa’s challenge, similar to developing countries, reduced fiscal pocket, increased indebtedness and slow pace of economic recovery and underperforming industries. Behind this divergence, however, lie decades of deepening economic and social divisions, an unstable insertion into global financial markets subject to mercurial flows of capital, and diminished policy space. Rebuilding the economy needs commitment from the public and private sectors and all other stakeholders, including churches. South Africa needs the grace of a Buffalo economic growth miracle similar to the German Miracle-on-the-Rhine after World War II and the Miracle on the Han River after the South Korean War from 1950 to 1953. South Korea maximised export products through light and heavy manufacturing and the United Nations Conference on Trade and Development (UNCTAD) upgraded Korea’s status to a developed economy. South Korea is now at a critical inflection point and I believe South Africa needs to experience the same to be ranked as part of advanced economies.

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South Africa had been globally ranked 34 in 2008 and 2009 but has now dropped to 67. And yet, South Africa has the capacity to implement an industrial strategy and attract more institutional investors. With better ranking in infrastructure, South Africa needs to take advantage of manufacturing clothing and textiles, automotive parts and creating its own vehicle brand, developing the agriculture and agroprocessing market, and producing electricity for parts of the African continent. Achieving the gains from the African Continental Free Trade Area (AfCFTA) is especially important due to the Covid-19 pandemic, which is expected to cause up to US$79-billion in output losses in Africa in 2020 alone. Covid-19 has caused major disruptions to trade across the continent, including in critical goods such as medical supplies and food. By increasing regional trade, lowering trade costs and streamlining border procedures, full implementation of AfCFTA would help South Africa to increase resiliency in the face of future economic shocks and help usher in the kinds of deep reforms that are necessary to enhance long-term growth. The strength of South Africa’s industrial sector must be rooted in building innovative capacities, highly skilled employees and successful interaction between industrial SMEs, family businesses and large enterprises in highly efﬁcient and precisely timed value chains. Globalisation, regionalism and innovation are taking place more quickly, and there is a clear trend towards state interventions and away from multilateral agreements. As a potential successful industrial economy, South Africa needs to respond to these changes by proactively shaping new developments and leading in supply chain operations and manufacturing of minerals and building reﬁneries, like other G20 nations. The economic development strategy’s core objective is to give a lasting boost to the increasing production needed and competitiveness of the entire industrial sector in South Africa and the African Region and to consolidate and build on the technological manufacturing hub in South Africa.

The strategy is based on the tried-andtrusted principles, in fast-growing economies and nations that experienced miracle growth, of the Social Market Economy and defines the cases in which state intervention can exceptionally be justified or even required in order to avert serious disadvantages for the country’s economy and the well-being of the nation. The National Industry Strategy for 2060 can make a contribution towards shaping a South African market economy which has a viable future. South Africa’s National Industry Strategy 2060 must have a united central field of action which focusses on strengthening agroprocessing, manufacturing of automotive industry components and renewable energy components and of key enabling technologies such as modernisation and mechanisation, digitisation, artificial intelligence and battery cell manufacturing. The other main fields of action must be strengthening industrial SMEs; mobilising more venture capital for risky investments such as infrastructure and industrial development; advocating open markets and access to markets for South Africa’s start-ups and scale-ups; promoting and maintaining access to and mastery of technologies within our diversified sectors; improving the general policy environment – for example, energy prices, taxes and welfare charges – and revisiting state aid to SMEs and competition law. A competitive industry is a core element of South African commerce and thus part of the way forward towards a shared identity of a flourishing, social, sustainable and modern South Africa – and the rest of African markets. South Africa is expected to support the development of a long-term industrial development strategy comprising concrete measures to continuously improve and permanently boost the competitiveness of the South African industry. It needs to be rooted in the national industrial strategies that can lead industrial development and growth. The African Continental Free Trade Area offers employment and entrepreneurship opportunities for youth, but policymakers and development organisations must take steps to ensure the agreement reaches its full potential.

The overall environmental impacts of extraction and processing of key metals are projected to at least double between 2019 and 2060 The AfCFTA has what it takes to tackle these challenges by creating more jobs and entrepreneurship opportunities for young men and women. Africa is the youngest continent in the world, with a median age of 19.8 years and 65% of the population under age 25. A third of all youth are expected to be living in Africa by 2050, which could be usefully linked with the industry strategy in that the youth could be a resilient human capital aiming to produce global materials resources. This way, Africa could produce 70% of its own products and food consumed by the continent. Manufacturing stands to beneﬁt the most under the AfCFTA and forecasts indicate that it could create up to 16 million new jobs. South Africa is expected to take the lead in driving the evolution that will help bridge the youth employment gap and redress structural poverty and inequality.

MIYELANI MKHABELA FOUNDING DIRECTOR AND CEO ANTSWISA TRANSACTION ADVISORY

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GENDER LAW

WLSA DRAFTS A MODEL LAW TO ADDRESS THE PARTICIPATION OF WOMEN IN POLITICS KGOMOTSO RAMOTSHO, News Reporter for De Rebus, unpacks a ground-breaking paper on removing the barriers hindering women’s participation and gender parity in not only electoral and decision-making processes, but also in political parties

he Women and Law in Southern Africa (WLSA) Zimbabwe held a virtual meeting on the political participation of women on 23 September 2021, under the theme: ‘Enhancing the inclusion of women in political participation in Africa’. The National Director of WLSA, Fadzai Traquino, in her opening remarks gave a brief background on how the project, which is supported by the International Institute for Democracy and Electoral Assistance, has been implemented. She said that the project has taken three years to complete, with five partners namely, FEMNET (The African Women’s Development and Communication Network), Forum for African Women Educationalists, Gender Links, Universite Cheikh Anta Diop-Institut Fondamental d’Afrique Noire and Padare/ Enkundleni Men’s Forum on Gender. She added that WLSA has conducted surveys in seven African countries, where the organisation observed electoral laws, the electoral systems and the measures that have been put in place to include women’s participation towards the journey of gender equality.

Ms Traquino pointed out that a part of the WLSA’s realisation was that several African countries have committed themselves through being signatories and ratifying international and regional instruments from the United Nations to the Beijing Declaration and Platform for Action and moving back to the African continent and observing the African Union and a number of policy frameworks around gender inclusion and gender parity. She said that targets have been set across most of these instruments, either related to 30% in terms of a target in gender equality of 50%. However, she added that most of the African countries are still struggling to meet these targets. “Although we also recognise that within new emerging democracies, constitutions have also been reformed to remove discriminatory clauses, to remove laws or deal with barriers that are hindering to women’s participation and gender parity within certain legal frameworks,” Ms Traquino said. Ms Traquino added that there is still a lot that can be done to reform by

Changing the face of politics requires that women go beyond the political ambitions that they have looking closely at legislative frameworks to enhance the participation of women and be able to meet the targets. We also recognise political parties, several studies have been completed to audit from a gender perspective, the political parties across the continent, and WLSA also recognise that in order for women to participate in electoral processes and decision-making processes, especially in the politics arena, they have to participate also in political parties. She said political parties, however, are not necessarily gender inclusive and there are several barriers that have also inhibited women from participating or being included in decision-making processes in most political parties. Ms Traquino pointed out that changing the face of politics requires that women go beyond the political ambitions that they have.

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GENDER LAW

We must look at the policy, we must look at the legal framework as well, to see to what extent women can utilise it as a tool to commit and enhance women’s political participation. In so doing the consortium then agreed that it may be prudent for WLSA to develop a model gendered Pan Africa framework, which can be shared across different countries as the best model on how countries can strengthen their legislative framework to adopt measures that are inclusive and allow women’s participation. Phillip Muziri briefly explained the main content of the discussion paper by WLSA. The summary of the paper states that without the participation of women in decision-making processes, debates about policy priorities and options, which are issues of great importance to women will either be neglected, or the way in which they are addressed will be sub-optimal and informed by women’s perspectives. Mr Muziri pointed out the main features include: • literature review • general principles of gendered electoral law • the pre-election phase and gender equality • the post-election phase gender equality • observations, conclusions and recommendations. The Southern African Development Community (SADC) Lawyers Association’s Chief Executive Officer, Stanley Nyamanhindi, said that there are a lot of good laws out there but all that matters is the implementation of those laws. He presented the draft titled ‘Model Law for the Pan African Model Gendered Electoral Law’ prepared by himself, Obert Bore, together with Aminata Ruwodo to WLSA, pointing out that the objectives of the Model Law are to provide model provisions that assist Member States to enact laws on elections that aim to: • consolidate electoral democracy through creating gendered normative standards to regulate the conduct of the electoral process

• mainstream gender into the electoral obligations for states that are scattered in various electoral instruments, such as the SADC Principles and Guidelines Governing Democratic Elections and the Benchmarks for Assessing Democratic Elections in Southern Africa • assist in the domestication and implementation of the gender principles, guidelines and obligations • provide for key gender considerations that ought to be made in the regulation of all aspects of the electoral cycle and electoral processes • promote a cordial approach to gender mainstreaming in election observation and election management, as a means of achieving democracy • promote gender responsive electoral reforms, the strengthening of electoral institutions and the entrenchment of democratic elections • facilitate the development of inclusive and participatory electoral systems, practices and processes to advance peace, mitigate conflict, and deepen democracy • promote constitutionalism and the strengthening of institutions of democracy such as political parties, electoral management bodies (EMBs) and statutory commissions that are key for electoral governance such as the human rights, gender, and anti-corruption commissions. Mr Nyamanhindi added that this Model Law on Elections is non-binding, however, it is persuasive in guiding gender responsive law reform and in particular electoral law. It serves as a blueprint to comprehensively guide law and policymakers in modelling gender responsive domestic election laws. The draft Model Law has more than 15 components and, among others, it includes: • principles of elections • the electoral management body • electoral systems • delimitation of electoral boundaries • timing of the election • political parties and election candidates

Most of the electoral laws in the continent are not necessarily bad, but they are deliberately not implemented • • • • •

electoral code of conduct campaigning media polling stations checklist essential for electoral law framework.

When making remarks, one of the attendees said that he acknowledged that the paper is comprehensive and looks like a solid base for a good Model Law. He added that there is no doubt that WLSA will produce a good Model Law, however, the concern is: How to make sure that the Model Law is embraced by member states? He pointed out that most of the electoral laws in the continent are not necessarily bad, but they are deliberately not implemented. He said political parties and politicians must not be spared and that the broader society implements the laws that are put in place. Another attendee said that there is no doubt that more women are needed to get involved in the aspects of the political process. Equitable participation of women in public life is essential to building and sustaining strong and vibrant democracies. The speaker added that women are on the ground and know what is happening in communities, but women are left out of making the decisions and women can play a greater role, not only in participating in politics but also in shaping policy reformed. She pointed out that there should be a move on how to get men to understand that women have a role in society and in politics. She said this will require a fair amount of increased support by women’s organisations to promote women.

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GOODS IN TRANSIT T INSURANCE HELPS KEEP A RESILIENT TRANSPORT INDUSTRY

Ensuring that goods in transit arrive safely at their destination is a make-or-break aspect of many businesses. GIT insurance is a necessary safeguard against catastrophic financial losses when things don’t go according to plan, advises VERNON SUBBAN

he transport sector is the lifeline of our economy, and this was particularly reaffirmed during the hard lockdown to curb the spread of Covid-19 in 2020, when hauliers had the nation covered by working tirelessly to get all our essential goods delivered. Presently, at any given time there are a considerable volume of goods on our roads, as the largest percentage of our freight relies on this mode of transport. For those numerous businesses whose bottom line is dependent on goods arriving safely from one point to another, this can become a daunting task. Goods in Transit Insurance will protect the goods that a business is responsible for while in transit against loss, theft or damage.

GOODS IN TRANSIT (GIT) INSURANCE EXPLAINED The moment those trucks or vehicles carrying precious goods leave a business premises and get onto our country’s roads, they become vulnerable to numerous risks. Since the first recorded truck hijacking around 1989, it has become a multibillionrand business for criminals. The past two years have been unprecedented for the trucking industry’s risk exposure – the Covid-19 pandemic and lockdown restrictions, the July 2021 unrest, and the continued arson attacks on trucks. Coupled with other perils and hurdles, this has led to devastating financial losses for many of these businesses. Goods in transit (GIT) insurance covers goods against loss, damage or late delivery, while it is in transit from one place to another or being stored during that journey. It includes transportation of a business’ own goods from the business premises to the client as well as goods delivered on consignment. For haulage contractors or transport operators, clients’ goods are also safeguarded while on consignment (goods are considered to be on consignment for the entire transit period even if the buyer/ consignee settles cash on delivery). The amendments to the National Road Traffic Act of 1996 also requires transport operators to provide evidence that both the vehicles and goods to be transported on our roads are insured for damages that may occur as a consequence of an incident. The transport operator also needs to have

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a written declaration of the nature and quantity of goods being transported. So, current agreements and standard trading terms would need to incorporate the terms of the amendment, especially in respect of who is responsible for loss or damage to goods in transit in the business transaction.

WHAT DOES GOODS IN TRANSIT INSURANCE COVER? The following goods that are transported within South Africa are generally covered by GIT insurance: • Raw materials • Goods and materials in the process of being manufactured • Goods that belong to someone else for which your business is responsible • Ropes, chains and packaging material used to transport goods • Loss of goods due to a ﬁre or accident • Loss or damage caused by theft or hijacking • Loss or damage of goods due to civil commotion, public disorder, strikes, riots and terrorism are covered by SASRIA (South African Special Risks Insurance Association – the only insurers in the country who offer this cover) and can be included in conjunction with above cover. The GIT cover extends to include among others: • Deterioration of refrigerated stock – in the event of transporting perishable goods that are dependent on refrigeration, it becomes essential to add this aspect on, due to possible losses from cooling malfunctions. • Cover in other African countries – should delivery routes extend across our country’s borders, this needs to be speciﬁed on the policy, as it will ensure cover should anything untoward occur in a neighbouring country. • A certain period of storage is covered during the course of transit provided that the vehicle is kept in a locked building and there is evidence of forced entry – this cover is essential when there are any unexpected delays, but will not cover planned storage. The nature of the transport/logistics industry today dictates the necessity for bespoke GIT Insurance policies, considering the number of exclusions in standard policies. GIT insurance will provide uninterrupted

cover from the moment goods are loaded at the business premises, the manufacturer’s or producer’s premises to the moment it is delivered to the client.

THE RIGHT GOODS IN TRANSIT INSURANCE COVER Insurance will remain a vital component in the supply chain management of goods transport and logistics. Whether a large fleet cross border transporter, or a one-man owner-driven outfit, ensuring that the business has the right GIT insurance cover cannot be overstated. The most important aspect to consider would be to be insured on the maximum possible value of the goods being transported. Opting for an average amount would certainly lower premiums but would result in being paid out for undervalued goods in the event of a claim. Be familiar with packaging, loading and unloading terms and conditions as these could also influence the outcome of a claim. Policy conditions need to be checked for exclusions like unusual loads, such as ammunition and other hazardous goods, so that they can be included if needed. A raise in premium will then follow, as the cost of GIT insurance is directly dependent on the level of risk. Weight-rated restrictions may also apply. Goods that are left unattended will be excluded from cover, so driver’s need to be educated on the importance of vigilance while goods are in transit.

stops before delivery. Tachographs allow transporters to monitor vital activities of drivers as they are ultimately the kingpins to a safe and uneventful delivery. Transport companies who transport high target goods like electrical gadgets, computers and other sought-after items, generally dispatch two drivers to ensure an uninterrupted trip. Due care and precaution need to be taken when packing and unloading goods as well. Continuous innovation in telematics, artiﬁcial intelligence and more have become critical to the success of monitoring goods in transit through our road networks, with resultant cost savings. The transport industry is by its very nature a high-risk class of insurance, so it becomes most welcome when insurers offer reduced premiums for compliance with comprehensive risk management programmes.

CONCLUSION Road transport remains an essential service that drives our economy and ultimately affects our everyday life. It is the dominant way we move large volumes of goods from one point to another in Southern Africa, albeit capital and labour intensive. Ensuring that goods in transit arrive safely at their destination therefore becomes the lifeblood of many businesses. Goods in transit insurance will continue to safeguard these businesses from catastrophic ﬁnancial losses as a result of hijackings, theft, mishandling and other factors, keeping them part of this burgeoning aspect of the economy.

RISK MANAGEMENT – A VITAL ASPECT TO HELP REDUCE THE GOODS IN TRANSIT INSURANCE PREMIUM With the value of goods lost or stolen in transit soaring and clients demanding perfect order fulﬁlments, risk management for businesses in the transport and logistics industry cannot be overemphasised. Goods owners need to choose reputable carriers/transport operators, who have strategies in place to minimise losses including among others, strict driver management programmes – drivers who transport hazardous materials, livestock and refrigerated trucks, need to be speciﬁcally licenced to do so. Delivery routes need to be carefully planned to have minimal

VERNON SUBBAN INSURANCE BROKER SUBBAN AND SUBBAN RISK MANAGERS

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TRADE AND INVESTMENT

AUSTRALIA–SOUTH AFRICA: BILATERAL TRADE AND INVESTMENT RELATIONS CONTINUE TO STRENGTHEN GITA KAMATH, Australia’s High Commissioner to South Africa, offers a positive message: Australia and SA will continue to look for ways to grow and broaden the scope of their relationship through shared resilience and agility

ustralia–South Africa relations continue to grow, underpinned by strong government, business, sporting and cultural links between our two countries. While we might in some respects be trade competitors and fervent sporting rivals, our common values, southern geographies, shared challenges, and strong mineral endowments mean we both have much to gain by working even more closely together. The contemporary bilateral relationship has its roots in the resolute opposition of successive Australian governments to apartheid. Australians joined people from across the globe in protesting and sanctioning the abhorrent inequality and conduct of the apartheid regime. And were delighted to welcome the new South Africa into the international community in 1994.

THE AUSTRALIA–SA TRADE BALANCE Our strong economic relationship is the clearest, if somewhat under-appreciated, evidence of our countries’ ties. South Africa is Australia’s largest trading partner on the continent. While bilateral trade was temporarily dampened by the Covid-19 pandemic, in 2021, Australia’s two-way merchandise trade with South Africa was

valued at over R31-billion – split almost evenly between exports and imports. South Africa makes up more than a third of Australia’s merchandise trade with Africa. In 2021, over 11 000 vehicles made in South Africa were exported to Australia, with a value of some R4.3-billion. Bilateral investment is also relatively balanced between the two countries. In 2020, total two-way investment was valued at some R157.2-billion. Overall, Australia is the eighth-largest foreign direct investor in South Africa and ASX-listed companies are the largest foreign investors in South Africa’s mining sector. South32 and Richards Bay Minerals, a subsidiary of Rio Tinto, are the two largest Australian investors in KwaZulu-Natal, providing direct employment to some 7 000 people, with in excess of 35 000 downstream jobs also created. In March 2022 at the President’s 4th Investment in South Africa Conference, ASX-listed firm Renergen pledged to invest a further R14-billion in mining beneficiation as it develops LNG and helium reserves in the Free State. Orion Minerals is looking to commence mining in 2022 at its Prieska copper/zinc project in the Northern Cape, while West Wits Mining’s new Johannesburg project is already producing gold ore.

Besides resources and energy, Australian investment in South Africa covers a range of other sectors, such as retail. For example, Cotton On operates some 170 stores in South Africa and operates its largest store globally in the Mall of Africa in Midrand, Gauteng.

OTHER IMPORTANT LINKS The substantial people-to-people links between South Africa and Australia are a major driver of the relationship. South Africans are now the seventh-largest migrant group in Australia. Undoubtedly, these bonds and diaspora connections promise to stand the bilateral relationship in good stead moving forward. The opening of Australia’s borders and the recent resumption of direct Qantas flights between Johannesburg and Sydney are thus extremely welcome developments. Australia and South Africa cooperate on a number of exciting science and technology projects that are generating new commercial opportunities for industry in both of our countries. The Australiandesigned and co-funded Digital Earth Africa platform – which is hosted by the South African National Space Agency – uses opensource technology to translate satellite data into decision-ready maps and information, allowing policymakers, scientists and the

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TRADE AND INVESTMENT

private sector in Africa to address social, environmental and economic challenges. This project, along with the ground-breaking Square Kilometre Array – the world’s largest radio telescope, jointly hosted by South Africa and Australia – are catalysts for innovation and new technologies with broad commercial applications. Australia and South Africa share many challenges related to climate change; however, our continents are also blessed with abundant sources of renewable energy as well as the metals and minerals vital to the transition to a low-carbon economy. There are substantial opportunities for our respective countries to share expertise and knowledge in support of climate action and energy transition, including in the emerging renewables and clean hydrogen sectors.

IN CONCLUSION We continue to look for ways to grow and broaden the scope of the bilateral trade and investment relationship. In addition to the work of my ofﬁce and the Australian Trade Commission (Austrade), the Australian Business Chamber of Commerce for Southern Africa based in Johannesburg continues to strengthen.

The Australia Africa Chamber of Commerce based in Melbourne is also working hard to expand trade between Australia and Africa. During the Covid-19 lockdown last year, both business chambers, supported by the Australian High Commission and Austrade, sponsored a webinar which looked closely at South Africa’s BroadBased Black Economic Empowerment (B-BBEE) policies and the investment environment. Speakers included B-BBEE Commissioner Zodwa Ntuli and Invest South Africa Head Yunus Hoosen. The webinar provided Australian investors and traders with valuable insights into the business environment in South Africa. We live in a time of great ﬂux in which global developments, although perhaps geographically far removed from our shores, create considerable uncertainty. It will take the combined efforts of political, labour, business and civic leaders in both our countries to guide us through this era. I am conﬁdent that our countries’ resilience and agility – thankfully both cornerstones of our respective national psyches – will ensure we adapt and thrive in the shifting global landscape.

For more information on the Australian High Commission in Pretoria: Email pretoria.info@dfat.gov.au Twitter @AuHCSouthAfrica Facebook @AuHCSouthAfrica LinkedIn australian-high-commissionsouth-africa

GITA KAMATH AUSTRALIAN HIGH COMMISSIONER TO SOUTH AFRICA

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SECURITY SERVICES HSS Security Services is an up-and-coming firm of security guards who strive to have a reputation for effective security solutions in the protection of life and property. The company’s Director, GDW Michaels, has more than 10 years’ experience in being a service provider. We have a portfolio of completed and ongoing projects, with particular emphasis on governmental security administration. The company provides a wide range of security services: property guarding, patrolling, event security, escort service, loss control, CCTV and control room monitoring. Office address: HA QUA Building, Varkevisser Street, Riversdale, 6670 PO Box 616, Riversdale Contact Person: Gavin Michaels, CEO | Gail Michaels, Management Contact number: 028 713 4605 | 083 502 9323 Email: gavinmichaels2003yahoo.com | hessequa@gmail.com

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ZONING IN

ON THE VAAL The Gauteng Growth and Development Agency recently announced an exciting new venture to the Emfuleni community – Project Phoenix – which will create much-needed jobs and attract investment to the entire Vaal Region

“R

ise Emfuleni Rise”. With these words the Executive Mayor of Emfuleni, Cllr Sipho Radebe, addressed community members at the Saul Tsotetsi Sports and Recreational Centre. The Programme Director, Dr Sibongile Vilakazi, Group Board Chairperson of the Gauteng Growth and Development Agency, shared the purpose of the Community Outreach Programme, held on 12 April 2022: “To create awareness of the development that the Vaal Special Economic Zone (SEZ) and its anchor investor, Mitochondria Energy Company (Pty) Ltd, will be embarking upon over the few months in readiness to break ground early in 2023”. The Vaal SEZ development will facilitate the establishment of “Project Phoenix”, a Hydrogen Fuel Cell manufacturing facility, to be located in the “Hydrogen Valley”, earmarked for the Emfuleni Local Municipal region. The Community Outreach Programme included a keynote address by the MEC of the Gauteng Department of Economic Development, Agriculture and Rural Development, Mr Parks Tau, that reiterated the importance of Special Economic Zones to attract and facilitate investment in the Vaal Region. He furthermore highlighted the importance of Small, Medium and

Micro Enterprises (SMMEs) and Townshipbased companies’ participation in the manufacturing sector to tie into the value chains of the SEZ’s, to support companies like Mitochondria with the supply of components and services that are needed to produce and export alternative energy. To this end, government has launched the Township Economic Development Bill, which is aimed to support the establishment of township enterprise zones that will offer benefits such as funding, procurement, better by-laws, tax breaks, and dedicated programmes to support the establishment of SMMEs. The Vaal SEZ will be a multi-sector, multi-site Special Economic Zone that will be focused on the Southern Corridor within the Gauteng City Region. The Vaal SEZ will develop sites that will be located in all three of the local municipalities within the Sedibeng District namely, the Emfuleni, Lesedi and Midvaal Municipalities. Mr Xola Sithole, the Programme Director of the Vaal SEZ, explained that the mission of the Vaal SEZ is to “reignite the birthplace of industrialisation in South Africa”. This will be done in a manner that builds a socially cohesive society, with sustained economic growth that results in the creation and retention of quality jobs. He reiterated the

importance of building strong local linkages with the township and rural economies, with participation of SMMEs and township-based businesses in the value chains that the Vaal SEZ will develop and strengthen. The Vaal SEZ’s business case identified sectors related to renewable energy manufacturing and supporting the green energy-fuelled re‑industrialisation of the Vaal region; high impact investments into food, agriculture and agri-processing, with a strong focus on the Cannabis and Hemp sectors; gateway logistics including air, road, rail and the river to exploit the locational advantages; investments in the Blue Economy and the tourism sectors. Other enabling projects will include the support of the development of a Smart City along the Vaal River to enable the Vaal SEZ development and to drive urban regeneration. The value proposition of the Vaal SEZ encompasses an enabling framework underlined by strong support from all three tiers of government, namely, national government through the Department of Trade, Industry and Competition, provincial government through the Gauteng Department of Economic Development as well as local government through the Sedibeng District Municipality and the three

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GROWTH AND DEVELOPMENT

local municipalities of Emfuleni, Lesedi and Midvaal. Other elements include the SEZ legal and regulatory framework underlined by strong commercial and significant economic and social returns, including incentives and rebates. Mr Sithole reiterated the locational advantage of the Vaal SEZ sites being in South Africa’s economic hub, with good logistics access. The Vaal SEZ sites include three land parcels totalling 169 hectares in the Lesedi Local Municipality, five land parcels totalling 900 hectares in the Midvaal Local Municipality and two land parcels totalling 697 hectares in the Emfuleni Local Municiality. “The role of the community situated around the Vaal SEZ cannot be underestimated,” said Mr Simphiwe Hamilton, Acting CEO of the Gauteng Growth and Development Agency and former CEO of the Tshwane Automotive SEZ. Hamilton shared valuable lessons and experiences of how the communities of Eersterust, Nelmapius and Mamelodi got involved and supported the establishment of the Tshwane Automotive SEZ. The establishment of formal structures through ward councillors in the community led to the formation of a Community Project Committee (CPC) that is represented by

community leaders, organised business forums, women forums, youth forums, people with disabilities as well as military veterans. Appointed CLOs assisted with the identification and facilitation of job creation and SMME opportunities. A Skills Development Centre was established to support the training of labourers and administrative functions, such as the capturing of information on jobseekers and businesses on a central database used to manage job placements and contracting of SMMEs. “The Community must adopt, support and protect the SEZ,” said Hamilton. Founder and CEO of Mitochondria Energy Company (Pty) Ltd, Mr Mashudu Ramano explained that Project Phoenix will manufacture fuel cells, revolutionary technology converting hydrogen into electricity. Part of the work that Mitochondria is currently undertaking is to conduct a localisation study to identify products and services within their value chain that can be sourced from the local communities of Roshnee, Sebokeng, Sharpeville, Boipatong, Bophelong, Evaton, and other communities that are located in and around the Vaal SEZ site. Ms Natalie de Wet from Hatch Africa, the company that is supporting Mitochondria with the localisation drive, shared more

The mission of the Vaal SEZ is to “reignite the birthplace of industrialisation in South Africa” detail on the parts and components that make up the fuel cell. SMMEs and companies from the local community were asked to identify which of these parts and components they could manufacture and supply through their current operations. Dr Sibongile Vilakazi, Group Board Chairperson of the Gauteng Growth and Development Agency, facilitated a session with feedback, questions and remarks by members and organised business forums from the local community. The sentiment was overwhelmingly positive, with pledges of support and participation from the community. The day ended with the Executive Mayor of Emfuleni, Cllr Sipho Radebe, calling on the youth to take up the opportunity to participate and to become part of the opportunity that was presented by Mr Ramano. The final message to the communities of Emfuleni is that the Vaal SEZ is open for business.

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DEALING WITH DECEASED ESTATES AND MAINTAINING THEIR ACCOUNTING RECORDS Legal practitioners involved with deceased estates should always ensure compliance with all prescripts surrounding this area of entrustment, explains SIMTHANDILE KHOLELWA MYEMANE

egal practitioners, as part of the services they may provide relate to deceased estates, either in the role as executors, administrators or as agents. In terms of the legislation that regulates legal practitioners, both the Legal Practice Act 28 of 2014 (LPA) and the Rules made under the authority of ss 95(1), 95(3) and 109(2) of the LPA, legal practitioners are required to prepare and maintain trust accounting records relating to deceased estates in which the legal practitioner is involved. This article does not seek to explore the administration of estates in detail but deals with certain areas that are of concern. Section 87(3)(c) of the LPA states: ‘For the purposes of subsections (1) and (2), “accounting records” includes any record or document kept by or in

SimthandileMyemane.indd 36

the custody or under the control of any trust accounting practice which relates to – … (c) any estate of a deceased person or any insolvent estate or any estate placed under curatorship, in respect of which an attorney in the trust account practice is the executor, trustee or curator or which he or she administers on behalf of the executor, trustee or curator’. Rule 54.6 dealing with accounting requirements states: ‘A firm shall keep in an official language of the Republic such accounting records, which record both business account transactions and trust account transactions, as are necessary to enable the firm to satisfy its obligations in terms of the Act, these rules and any other law with respect to the preparation of

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ESTATE LAW

financial statements that present fairly and in accordance with an acceptable financial reporting framework in South Africa the state of affairs and business of the firm and to explain the transactions and financial position of the firm including, without derogating from the generality of this rule – … 54.6.2 records containing entries from day to day of all monies received and paid by it on its own account, as required by sections 87(1) and 87(3) of the Act; 54.6.3 records containing particulars and information of – 54.6.3.1 all monies received, held and paid by it for and on account of any person; … 54.6.3.4 any interest credited to or in respect of any separate trust savings’. According to r 54.9.1, all such records shall be retained for a period of seven years from date of the last entry recorded in each book or other document of record or file. Rule 54.15.1 of the Rules states: ‘Every firm shall extract monthly, and in a clearly legible manner, a list showing all persons on whose account money is held or has been received and the amount of all such moneys standing to the credit of each such person, who shall be identified therein by name, and shall total such list and compare the said total with the total of the balance standing to the credit of the firm’s trust banking account, trust investment account and amounts held by it as trust cash, in the estates of deceased persons and other trust assets in order to ensure compliance with the accounting rules’. In terms of s 55(1)(b) of the LPA, the Legal Practitioners’ Fidelity Fund (the Fund) ‘is

CLAIMS NOTIFIED AND PAID

NOTIFIED

PAID

liable to reimburse persons who suffer pecuniary loss, not exceeding the amount determined by the Minister from time to time by notice in the [Government] Gazette, as a result of theft of any money or other property given in trust to a trust account practice in the course of the practice of the attorney or an advocate referred to in section 34(2)(b) as such, if the theft is committed – … (b) by an attorney or person acting as executor or administrator in the estate of a deceased person’. Considering the claims notified to and paid by the Fund relating to deceased estates over the past five years, the Fund has noticed that this category of claims has been in the top three categories of higher claims as can be seen in the table below. Of note, the claims on deceased estates notified to the Fund relate to matters for which no bonds of security were issued by the Legal Practitioners’ Indemnity Insurance Fund NPC (LPIIF). In terms of s 77(3)(a) of the LPA dealing with the provision of insurance cover and suretyships, the Board of the Fund may enter into deeds of suretyship to the satisfaction of the Master of the High Court, who, in turn, has jurisdiction in order to provide security on behalf of a legal practitioner in respect of work done by that legal practitioner as executor in the estate of a deceased person. The Fund, through the LPIIF that the Fund established in 1993, issues bonds of security to legal practitioners who are appointed as executors in deceased estate matters.

Legal practitioners can obtain these bonds through other insurers and are not compelled to obtain them through the LPIIF. Where the LPIIF has issued bonds of security, claims arising from those deceased estates handled by the legal practitioner are reported to the LPIIF. During the Fund’s inspections at some legal practices, it was noted that where the LPIIF issued bonds of security for deceased estates, legal practitioners failed to notify the LPIIF of a distributed and finalised estate resulting in the LPIIF continuing to reflect an open position on those bonds. Open positions on bonds of security negatively impact on the insurance premiums for the LPIIF. These open positions also impact on the Fund’s profiling of the legal practice and legal practitioner. Maintenance of accounting records could be a reminder for this notification as soon as ‘nil’ balances are recorded. In terms of the Administration of Estates Act 66 of 1965, s 28 dealing with banking accounts states that: ‘(1) An executor – (a) shall, unless the Master otherwise directs, as soon as he or she has in hand moneys in the estate in excess of R 1 000, open a cheque account in the name of the estate with a bank in the Republic and shall deposit therein the moneys which he or she has in hand and such other moneys as he or she may from time to time receive for the estate; (b) may open a savings account in the name of the estate with a bank and may transfer thereto so much of the moneys deposited in the account referred to in paragraph (a) as is not immediately required for the payment of any claim against the estate;

FINANCIAL YEAR 2015

2016

2017

2018

2019

NUMBER

111

106

129

Unavailable

VALUE

R37 914 562

R52 729 070

R53 055 931

R48 992 767

R19 383 982

NUMBER

Unavailable

VALUE

R14 747 537

R9 797 338

R23 377 752

R45 917 919

Source: www.fidfund.co.za/financial-reports/

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ESTATE LAW

(c) may place so much of the moneys deposited in the account referred to in paragraph (a) as is not immediately required for the payment of any claim against the estate on interest-bearing deposit with a bank’. The Fund has noted – through inspections conducted at legal practices – that some legal practitioners do not open separate banking accounts as required in terms of this section for estate moneys in excess of R 1 000 but receive and keep the money in the general trust banking account of the legal practice. In this instance, the deceased estates form part of the general trust accounting records. The Fund has noted through inspections that other legal practitioners do open estate late banking accounts into which estate’s money is deposited as required and the money not immediately required is deposited into savings and interestbearing deposit accounts. What the Fund has not seen in several instances, is the preparation and maintenance of accounting records where estate late accounts and separate interest-bearing accounts are opened. The scope of the auditors who audit trust accounts excludes the audit of deceased estates accounts, except for those that ﬂow through the general trust account of the legal practice, and this has resulted in this area of entrustment not being audited, and in turn led to some legal practitioners not maintaining the accounting records as required, and mishandling and/ or misappropriating the money entrusted, hence the claims notiﬁed to the Fund. Legal practitioners should note that for purposes of inspections the Fund conducts at the appointment of the Board, deceased estates are not excluded from the scope of inspection. Legal practitioners should further take note that if at inspection it is found that the accounting records were not maintained, the inspector may write up the books and the cost for that inspection will be borne by the legal practice. Because this area of entrustment poses a risk to both the Fund and the LPIIF, in that the issuing of bonds of security, both the Fund and the LPIIF have a vested interest on how these funds are dealt with at legal

practices. As part of the proﬁling that the Fund conducts, the Fund also considers the deceased estates and their administration. Lack of controls or mismanagement of deceased estates raises the risk level of the legal practice and a legal practitioner, it may lead to an application through the courts for curatorship. Where there are concerns as to how deceased estates are dealt with by a trust legal practice, it may lead to an expanded inspection beyond just the deceased estates as they are symptomatic of a potential mismanagement of trust moneys in general. In terms of s 51(4) of the Administration of Estates Act, ‘[a]n executor shall not be entitled to receive any remuneration before the estate has been distributed as provided in section 34(11) or 35(12), as the case may be, unless payment of such remuneration has been approved in writing by the Master’. There are tariffs determined for the executor’s remuneration, these being – o 3,5% of the gross assets of the estate; and o 6% of the gross income post the passing of the deceased; or o otherwise as provided in the will. We have noted several instances where legal practitioners, following receipt of funds into the estate banking account, transfer funds from the estate banking account to their business banking account, sometimes before they even advertise the estate. This practice is not allowed as it amounts to contravening the requirements of the Act and possibly fraud. There is an exception in terms of fees earned on the sale of an immovable property of an estate. Fees relating to the conveyancing matter become due to the conveyancer on registration of the property in the purchaser’s name, and this happens before distribution of the estate as the proceeds from that sale form part of the distribution of the estate. Lastly, the distribution of the estate should be done without any undue delay.

CONCLUSION In conclusion, legal practitioners involved with deceased estates should always ensure compliance with all prescripts surrounding

this area of entrustment. Care should be taken when winding-up or assisting to windup an estate of the deceased. More often than not, the beneficiary from the estate needs the property that is bequeathed to them. In some cases, young children are the beneficiaries and are fully dependent on the funds and assets entrusted with the legal practitioner. In other cases, the widow or widower needs the bequeathed money and/or property to raise the children of the deceased. It is important that legal practices dealing with deceased estates are properly managed, and people within the legal practice dealing with deceased estates should protect the image of the profession and manage the estates correctly and in accordance with the prescribed legislation. If the trend in theft of funds from deceased estates continues to be high and not curbed, it poses a major risk to the Fund, and a risk to the sustainability of the Fund. Credibility of a legal practitioner goes a long way in protecting his or her reputation, legal practice, and the profession. Preparation and maintenance of accounting records for deceased estates not flowing through the general trust account must always be ensured as it can assist in early detection of any wrongdoing. This article was first published in De Rebus in 2021 (June) DR 6.

SIMTHANDILE KHOLELWA MYEMANE PRACTITIONER SUPPORT MANAGER LEGAL PRACTITIONERS’ FIDELITY FUND

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4/25/22 12:48 PM

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FAMILY LAW

THE RIGHTS OF WOMEN IN CUSTOMARY MARRIAGES It is important to register a customary marriage in South Africa to afford legal protection to spouses, says EILEEN DEXTER

efore we address the topic at hand, it is important to understand the difference between a civil marriage and a customary marriage. Certain requirements exist that must be complied with in order to conclude a valid customary marriage, which requirements differ based on the type of customs prevalent in a specific tribe, for instance the handing over of a bride, paying “lobola” and the celebration of the marriage according to customs (which may include the slaughtering of an animal or having a chieftain present), while a civil marriage is seen as a marriage concluded between two parties before a marriage officer and witnesses, without the need to celebrate the marriage in a certain way or paying any form of “lobola”. A civil marriage will always be registered with the Department of Home Affairs whilst customary marriages seldom get registered with home affairs, although they should be for the parties’ best interest to be protected. But what does this mean when the parties want to part ways, especially for women in customary marriages?

WHY IS THE REGISTRATION OF A CUSTOMARY MARRIAGE OF VITAL IMPORTANCE? The dilemma that parties in customary marriages find themselves in when the registration of the marriage does not take place, is how to approach the dissolution

of an unregistered customary marriage. Especially, when one spouse has concluded another customary marriage or civil marriage or civil union with a different person at the time that the dissolution is to take place. What is the proprietary consequence, especially for women, as a customary marriage is deemed a marriage in community of property and loss, if no ante nuptial contract is concluded prior to the marriage taking place? It is trite law that a simple separation does not terminate a customary marriage. As it is deemed a legal marriage if all of the requirements were met at the time that the marriage was concluded, only a court of law by a decree of divorce may terminate a customary marriage. However, before one dissolves a customary marriage through the court, there must be some prima facie proof that the customary marriage exists. This can become problematic in a lot of instances, as it is hard to prove after a couple of years and the death of elders who negotiated the marriage terms, that the marriage took place. As such, how does one go about dissolving a marriage and enforce one’s rights in terms of the dissolution of same, if it is difficult to prove that one existed in the first place? It is for this reason and the fact that most customary marriages are not registered, that it has become a trend for, spouses to enter into a civil marriage and thereafter

Contrary to popular belief, a customary marriage may also be registered and has the same proprietary consequences applicable to other marriages to register the civil marriage with the Department of Home Affairs, to obtain a marriage certificate. This would then, however, mean that the spouses would be excluded from other rights that would have existed, had a customary marriage been entered into, for example polygamy. However, it is important to note that contrary to popular belief, a customary marriage may also be registered (and should in fact be registered) and has the same proprietary consequences applicable to other marriages, this is in terms of section 4 of the Recognition of Customary Marriages Act 120 of 1998, as amended (“the RCMA”). It is thus of utmost importance, that if spouses entered into a customary marriage, that they attend to the registration thereof at the Department of Home Affairs, so as to provide the necessary proof that it existed/exists.

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FAMILY LAW

DISSOLUTION OF A CUSTOMARY MARRIAGE A court may dissolve a customary marriage by a decree of divorce on the ground of irretrievable breakdown of the marriage (s 8(1) of the RCMA). It is also trite law that before a court dissolves the marriage; it must be prima facie proved that the marriage exists. The prima facie proof in most cases is the original marriage certificate. Should no such marriage certificate exist, the parties would need to find other means to prove that it existed, which may be more difficult and onerous to prove.

PROPRIETY CONSEQUENCES FOR WOMEN IN A CUSTOMARY MARRIAGE WHEN FACING DIVORCE Despite the evolution of the RCMA to cover the rights of women in customary marriages, there are still a lot of problems to overcome when it comes to seeking a customary divorce in South Africa. Not many women in customary marriages have knowledge about their rights and/or obligation in relation to the assets and liabilities of their joint estate. This, of course, creates a barrier to justice, and many women don’t seek legal recourse, which can severely impact their futures. The following are only a few of the aforementioned issues women in customary marriages must be educated on in the writer’s opinion: Separating instead of getting a legal divorce It’s important for women to know that they will only have access to the division of assets if the customary marriage is dissolved in a court of law. A separation will not be of any beneﬁt to the wife, so it is imperative to register the customary marriage (or ensure that other proof of same is available) in order to conﬁrm that all legal rights are protected. There have also been cases where a husband, after a separation from an unregistered customary marriage, entered into a civil union giving his new spouse the legal right to all assets in the estate (this marriage would not be a

legal marriage as he would be precluded from entering into a civil marriage due to the subsistence of the customary marriage, but it would be wise to seek legal advice in such an instance). Not knowing they’re entitled to an equal share The default proprietary regime of a customary marriage is in community of property, which means that, upon divorce, the former spouses are entitled to an equal division of the joint estate, including all assets and liabilities. However, in some cases where a customary divorce is being heard in court, women often don’t know that they can seek an equal share in the estate but have already signed a settlement agreement that might not reﬂect this position and is to their detriment. What is more concerning, however, is that most women also are oblivious to the fact that they are liable for all debts in the joint estate, whether they applied for and received the beneﬁt of any loans or not. This means that if the estate is not liquid at the time of the divorce, both husband and wife would be liable for an equal share of the debts existing at the time of dissolution. Women are seen as “deserting” the marriage if they want a divorce In addition to the above two points, in some instances, the blame for the “divorce” is placed on the wife who is seen to simply want to leave and “desert” the marriage and family. Because of this, there is a common belief in customary law that the wife is only entitled to her personal belongings, when she leaves the marital home and nothing else. This is not the case. If the wife simply leaves the home, this does not constitute a legal divorce and will compromise her rights to her ownership of half of the estate, if a legal divorce is not sought and the estate is not dissolved properly. Some legal practitioners and courts aren’t clued-up on the law of customary marriages. Often, the South African justice system and practitioners do not keep up

Women often don’t know that they can seek an equal share in the estate to date with changes to the law, and this can result in the situation that even if a divorce is taken to court, the RCMA is not taken into consideration. This means that courts do not sufﬁciently consider the circumstances that are relevant to how the matrimonial property will be shared. Ultimately, the equal division of a joint estate isn’t always guaranteed.

CONCLUSION The only real way in which women will be protected is if they are educated in knowing their legal rights when entering into a customary marriage, or any kind of marriage for that matter. Knowledge, as they say, is power, and it is important for women not to feel powerless in these situations. It’s also then crucial to seek a lawyer who is up to date on South African customary law so that they can accurately and fairly represent you in the divorce.

EILEEN DEXTER CANDIDATE ATTORNEY SCHINDLERS ATTORNEYS

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4/25/22 12:56 PM

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4/22/22 8:46 AM

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CULTURE

THE YOUNG AND

THE BRAVE

The youth is South Africa’s future. They also hold the power to make that future a bright one. THAPELO MASILELA highlights the importance of Youth Day in South Africa

n 16 June 1976 the police in service of the apartheid government opened fire on students in a brutal reaction to their protests against Afrikaans as the language of education. Many were tragically killed and injured. As a result of the massacre, the new democratically elected South African government declared June 16th as Youth Day – a day on which to remember the horrendous scenes that unfolded nearly five decades ago. A total of 176 lives were lost during the Soweto Uprising. Sadly, however, the number of people killed by the apartheidera government while peacefully protesting injustice is much larger and includes the 69 people lost during the Sharpeville Massacre on 21 March 1960; the 13 people killed during the Mayibuye Uprising on 8 November 1952 and the 35 souls lost during the Langa Massacre on 21 March 1985. An enduring legacy of the Soweto Uprising is the bravery of the students to stand up for what they believed in. Their willingness to take action changed the reality of the generation that followed them and will do so for many generations to come. They stood and walked as one. Virtues that have not lost relevance or importance 46 years after the fact and might even be more important today than they were all those decades ago. I cannot speak from personal experience when I discuss events such as the Soweto Uprising, as I wasn’t there. I can only admire how the youth questioned the system and didn’t accept the status quo. However, what I can speak of is the dreamers and creative minds of today that produce ideas ahead of our time. I can speak of the energy and willingness of today’s youth to continue the work started by those that have come

before. Youth that created movements such as the #FeesMustFall movement in 2015, where students protested against the increase of tuition fees that made higher education unaffordable, and the #StopRacismAtGirlsHigh movement, which saw school girls protest around the policy on black hair at their schools. These two movements showed the importance of the youth in their refusal to accept things as they are and made a conscience effort to change, regardless of how big or small the challenge was. Social media is both a positive and a negative force in life today. On the positive side, it has connected people from around the world and enabled them to participate in movements, advocate for causes and hold people accountable. Platforms like Twitter has given youth exposure to things which we ordinarily would not have experienced or even known about. Like many other technologies, social networks have made it easy to communicate across borders, class and race lines. As youth we understand technology and are at an advantage because we can use this to advance ideas, mobilising against injustices and mobilise for great causes. As youth we should use these platforms to make sure our voice is heard. On the negative side, social media has changed the perception of what success is. Even worse, on social media it seems success can be achieved overnight, and instant gratification can be achieved, well, instantly. For many, social media portrays a lifestyle which is unaffordable and unsustainable, causing some people to live beyond their means in an attempt to replicate what they have seen. Whether social media

inspires you to do great things or pushes you into depression, is really a question of the quality and strength of your personality. The same water that hardens the eggs softens the potato. The youth in South Africa must take a step forward and become more politically conscious. We need to be more aware and informed. The criticism which we give should be constructive and insightful and help to overcome the many challenges which the country faces both in the state and in the African National Congress. The youth played an instrumental role in the success of the ANC. More importantly, we have an equal if not greater role to play in taking the country to the next level and realising its potential. Change can only be achieved by fundamental virtues which make the very difficult doable. If we are to take the country forward, it is imperative for the youth to put these virtues into practice. Virtues such as patience, persistence, discipline, foresight and – one that I struggle with personally – bravery. To take the next step, all of these need to be the anchor of all our efforts if any greatness is to be achieved. The most difficult part of the journey is the journey itself. We need to be prepared to do the same thing over and over again without seeing results, but having faith in the process. Another big obstacle we need to conquer is the fear of feeling unsure. We will never know everything, and if we think that we do, we are in the wrong room. When it comes to uncertainty, few words give greater comfort that those of Maya Angelou, who said: “Do the best you can until you know better. Then when you know better, do better.”

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4/25/22 1:01 PM

BOOK REVIEW

ORDERLY ADVICE EBBEN VAN ZYL, ANDREW CAMPBELL and LIEZEL LUES turn the traditional idea of chaotic times as something to be feared on its head, with advice on how to thrive in an uncertain world

haos is a Gift? offers practical realities and specific recommendations on how to lead in turbulent times. Covering the private and public sectors, the academic world and conflict/post-conflict environments, the book is ideal for leaders in a broad range of environments, including the business, private, academic and public sectors, and conflict/post-conflict environments. Chaos is from the ancient Greek word that means ‘a thing that is birthed from the void’. Chaos is a Gift? turns the traditional idea of chaotic times as something to be feared on its head, with advice on how to thrive in an uncertain world. With the sub-title Leading Oneself in Uncertain and Complex Environments, the book asks the simple question of whether chaos can be seen as a gift and sets out to find the answer, while showing counterintuitively how disorder can be put to good use. According to the writers, when dealt with effectively chaos can lead to greater innovation, better teamwork, better interpersonal relations and better performance. But in order to achieve this within a changing and demanding

VUCA environment, leaders and nonleaders must first learn to lead themselves. This guide will show you how to do exactly that within our own turbulent times. Chaos is a Gift? is edited by a team of wordsmiths comprising Ebben van Zyl, Andrew Campbell and Liezel Lues. Currently Professor in the Department of Industrial Psychology at the University of the Free State, Prof Ebben van Zyl has published 48 scientific publications, 39 research projects, and has presented 45 papers at national and international conferences with regard to industrial psychology and leadership-related topics. Dr Andrew Campbell is the Director of the International Peace and Leadership Institute, in addition to being a retired senior military officer, and works for the Department of Defence specialising in Counter-Terrorism and Global Security Cooperation. He’s a recognised national and international speaker on peace leadership and has addressed a number of audiences worldwide, including the Peace Leadership Conference in 2017 and the International Leadership Association in 2018.

Liezel Lues is an Associate Professor of Public Administration and Management at the University of the Free State. She previously held the position of Head of Department following a term as Programme Director of the Department of Public Administration and Management. Her research interests include Public Management Transitions, particularly the role of leadership accountability. She has been awarded the Faculty Economic and Management Sciences Best Senior Research Award and is an NRF-rated scientist. ORDER INFORMATION Chaos is a Gift? 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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4/21/22 8:14 AM

Chushisanani Mzansi is an implementing agent established in 2005. The company is 100% black-owned, with Mr. S.S Myeni as managing member, and is also womenempowered.

CONTACT DETAILS Unit 11 Corporate Park, 11 Sinembe Crescent, La Lucia Ridge, 4051 Contact person: Mr. S.S Myeni Tel: 031 566 1690 | Cell: 083 499 8697 Email: myeni@cmzansi.co.za/ admin@cmzansi.co.za

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In the past few years we have worked on a number of projects within KwaZulu-Natal, and we always strive to go the extra mile, to provide excellent service and ensure all our projects are successful. The company generates maximum local employment and enables transfer of skills through appropriate training. Quality is our priority.

OUR SERVICES • Low-cost housing development • Middle income housing development • Social facilitation • GPS position • General Construction • Subsidy administration • Temporal residential accommodation • Turnkey projects • Project management REGISTRATIONS/CERTIFICATES • BEE level 1 • Construction Industry Development Board (CIDB). Grades: 7CE PE and 7 GB PE • National Home Builders Registration Council (NHBRC)

4/22/22 8:45 AM

Revive Electrical Transformers (Pty) Ltd has won the lion’s share of the 3-year distribution transformer Eskom contract, which is now in production at Revive’s more than 20 000 sqm state-of-the-art factory. We are currently producing more than 100 transformers per day. Revive Electrical Transformers is the only local manufacturer of Cast Resin dry-type transformers and of Cast Resin dry-type Mini-Substations in South Africa, which we supply to data centres, mines, distribution networks, solar and wind farms. Revive Electrical Transformers has started the manufacturing of Natural Ester-filled transformers, using FR3 from Cargill RSA.

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4/21/22 8:08 AM

Business Update Issue 23

Articles inside

BOOK REVIEW

CULTURE

FAMILY LAW

ECONOMY

GENDER LAW

GROWTH AND DEVELOPMENT

LABOUR

GOVERNMENT PROFILE

TRADE AND INVESTMENT

INSURANCE

COVER STORY