BUSINESS
A publication for progressive business
SA’S SOCIAL PACTS TO OVERCOME COVID-19 DRIVING LOCALISATION The key to a fair, sustainable and resilient economy is industrial agility
FOCUS ON NETHERLANDS Partnering for an intelligent economic recovery by going green
GAUTENG TOURISM The province is poised to be a catalyst for growth through its tourism sector
TESTING POSITIVE How to build business positivity when the cards are stacked against you
Issue 19 | December 2020
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CONVENOR’S MESSAGE
THE TASK OF OUR GENERATION: RENEW, REPAIR AND REBUILD TOGETHER This edition of Business Update is the last for this (devastating) year which many will be glad to see the back of. 2020 will go down in history as the year of the Covid-19 crisis and will be remembered for the effect the pandemic had on the lives of people, the world-over. It will be remembered for the loss of many of our family members and closest friends, who we mourn for deeply. It will be remembered for the loss of jobs and incomes, and the shrinking of the economy, which will likely continue to be with us for some time. But it will also be remembered as a year that saw an incredible solidarity, especially with regards the work and dedication of
health workers across the country, who remain on the frontline of the fight against the coronavirus. The sterling work and generosity of every South African will be the lasting memory of 2020. In an address to a joined sitting of Parliament in October this year, President Ramaphosa reminded us of our resilience as a nation, saying: “As South Africans, we have a deep reservoir of resilience to draw upon. We have endured much and have always emerged stronger and more united. We stand together at a crucial turning point in the history of our country. “Our ability to reignite our economy rests on the decisions we take in this moment, and the urgency with which we address this crisis. We shall not rest until we have fulfilled the potential of our country. “We shall not rest until we have built a new economy based on fairness, justice and equality. “This is the task of our generation: to
renew, to repair, and to rebuild. We dare not take a moment to pause. Together, we will build a new economy.” The ANC’s Progressive Business Forum (PBF) looks forward with renewed vigour to continuing and expanding its engagement with business in the year ahead. The PBF’s programme of action is designed to grow and enhance interaction between government, business and the ANC, and to be the tried-and-trusted voice of its subscribers in its ongoing engagements. We encourage your active participation in the PBF – let’s make the journey through the year ahead together. Wishing you and your loved ones a festive season of renewal.
Sasha Muller CONVENOR
Convenor Sasha Muller
Managing Editors Alwyn Marx and Olivia Main
Chief Albert Luthuli House 54 Pixley Ka Isaka Seme Street Johannesburg
Art Director Clare Schenk
PBF Editorial Team Sipho Mbele, Stephen McQueen, Seth O’Dea, Miranda Abrahams-Hermans
Contributors Alie van Jaarsveld, Amb Han Peters, Barba Gaoganediwe, Dr Francois Liebenberg, Justin Sloane, Megan Brook, Min Ebrahim Patel, Prof Theodore Petrus, the dtic, Werner Gaigher, William Gumede
Images
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
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stock.adobe.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.
Project Sales Tatenda Musonza Reginald Motsoahae Crosby Moruthane
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MF Jassat Dhlamini (MFJD) is committed to a culture of continuous improvement in striving to achieve service excellence. It aims to be a leader, among both emergent and established firms, in its chosen field of expertise. MFJD has concentrated its efforts on satisfying the legal requirements of all its clients. Its clientele includes both large and small business enterprises, as well as a number of non-profit organisations and individuals. Motor Vehicle Law | Commercial Law and Litigation Company Law and Litigation Insurance Law and Litigation including Compliance and Ombudsman Law of Property including Landlord and Tenant Conveyancing including Transfers, Bond Registrations and Sectional Title Labour Law | Personal Injury Law including Medical Negligence Sports and Entertainment Law | Debt Collection
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BRIEF COMPANY HISTORY Selenane (Pty) Ltd is a civil construction company which was formed in 2000 and registered on 11 February 2001 in Mahikeng with the objective to focus on Civil Engineering, Mechanical Engineering, Electrical Engineering and General Building. FIELDS OF EXPERTISE 1. Water Infrastructure – Bulk Water Augmentation, Internal Reticulation. 2. Sewer Infrastructure – Bulk Sewer Line, Oxidation Ponds, Internal Reticulation.
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3. Borehole Equipping – Sourcing, Drilling, Management Recommendation, Equipping, Monitoring. 4. Waste Water Treatment Works – Civil, Mechanical & Electrical Works; New and Refurbished. 5. Clear Water Treatment Works – Civil, Mechanical & Electrical Works; New and Refurbished. 6. Pump Stations Water & Sewer – Design, Building, Installation and Commissioning.
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CONTENTS 12 COVER STORY The keys to overcoming the post-Covid-19 economic and social crisis in SA lie in social compacts, social dialogue and government credibility. By William Gumede
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18 TRADE AND INDUSTRY A Manifesto committed to strengthening investment, while offering up an industrial plan for localisation. By Min Ebrahim Patel
22 TOURISM The Gauteng Tourism Agency is looking to make the most of its unique positioning to lead economic recovery for the region. By Barba Gaoganediwe
26 COUNTRY FOCUS Partnering in using climate change, the private sector and the 4IR to rebuild is the clever way to economic recovery. By Amb Han Peters
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28 CONSTRUCTION A massive Special Economic Zone (SEZ) is on the road to completion in Tshwane, come June 2021. By the dtic
30 INDUSTRIAL DEVELOPMENT Haikou High-tech Zone in China has big plans, and South African businesses are part of them. Watch this space‌ By Alie van Jaarsveld
32 TAX The tax treatment of employer provided bursaries has undergone quite a transformation. By Dr Francois Liebenberg
34 B-BBEE
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Fronting is a serious offence which could land you in jail, with a hefty fine and with a bad reputation. By Megan Brook and Justin Sloane
38 SUSTAINABILITY Reducing, recycling and reusing is the answer to ensuring the planet stays habitable for the next generation.
40 BUSINESS COACHING Sage advice on how to build business positivity in a time of crisis. By Prof Theodore Petrus
42 MENTAL HEALTH Learn how to control your stress response and beat burnout. By Werner Gaigher
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44 HOSPITALITY Mix business with pleasure at the renowned Majuba Lodge in the Midlands of KZN.
46 BOOK REVIEW Managing Organisations During the Covid-19 Vortex by Wilhelm Crous is essential reading for leaders at this time.
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BUILDING ON COMMON GROUND A message from ANC Treasurer General, PAUL MASHATILE, about using one of SA’s greatest strengths – forging social compacts – as an action plan to get our country on the road to economic recovery
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arlier this month, President Cyril Ramaphosa unveiled the South African Economic Reconstruction and Recovery Plan. It set out a vision and outlined an action plan aimed at stimulating equitable and inclusive growth of the South African economy. One of the key features of this plan is that it is consensus driven and seeks to mobilise collective action towards common goals. The plan is a product of a detailed consultation process with social partners at the National Economic Development and Labour Council (NEDLAC) – a product of a social compact among key stakeholders in the economy. The plan, therefore, draws on one of South Africa’s most prized assets which is also the essence of who we are as a people: social compacting, collaboration and consensus seeking. During the State of the Nation Address in February this year, President Ramaphosa referred to “the greatest strength of our constitutional democracy, and the reason it has endured”. This, he said, is our ability as South Africans to forge broad-based
coalitions and social compacts: with business, labour, special interest groups or wider civil society. The spirit of consensus and collaboration across all sectors, including among those who may have initially held diametrically opposed positions, is what produced the “South African miracle” our country is renowned for. It is this spirit that is once again carrying our nation as it navigates the path of economic reconstruction and recovery. It is also this spirit of working together towards common goals that should give all of us hope that the South African Economic Reconstruction and Recovery Plan will be implemented and that its goals will be achieved. The plan is a concrete expression by social partners of their willingness to pull together through this difficult period. It is a joint statement of intent to do everything necessary to ensure that our country makes a permanent and decisive break with our past of low and declining growth, falling per capita incomes, low investment, as well as high and deeply entrenched levels of inequality, poverty and unemployment. In pursuing the route of building social compacts, South Africa is not alone. Evidence from several other countries has shown that social compacts are an essential ingredient in effective and sustainable growth and development. Overall, there is significant convergence among social partners on what needs to be done to set the South African economy on a new, accelerated, inclusive and transformative growth path. There is also consensus that urgent action is required to kick-start the economic reconstruction and recovery effort; that time is not on our side. Accordingly, social partners have committed themselves to doing things
collaboratively, to acting decisively with speed and to harness available resources. In the crafting of the plan great care was taken to avoid doing everything but rather to jointly focus on a few high impact priority areas. These are: aggressive infrastructure investment; employmentorientated strategic localisation, reindustrialisation and export promotion; energy security; support for tourism recovery and growth; green economy interventions; mass public employment interventions; as well as enabling conditions and a supportive policy environment focusing on, among others, strengthening employment and empowerment, and massively increasing the participation of and benefits to the historically marginalised: women, youth, people with disabilities; as well as small, medium and microenterprises (including informal businesses) and cooperatives. Specific interventions that will be undertaken collaboratively under each of the priority areas have also been identified and agreed upon. These are categorised into short-, medium- and long-term interventions. The short-term interventions were determined on the basis of their ability to build consumer, investor and public confidence; kick-start the economy; deepen industrialisation through localisation; deliver quick wins; and continue providing relief to mitigate the impact of Covid-19. The medium- to long-term interventions seek to enable sustainable and inclusive transformative growth on an employmentintensive trajectory. It was agreed that equal significance will be placed on both short- and medium- to long-term interventions and that implementation will happen simultaneously. There was also agreement on clearly defined structural reforms required
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TG’S MESSAGE
to support economic recovery and reconstruction. This has helped deal with ambiguities that often arise when the phrase “structural reforms� is used. The structural reforms agreed to include: modernising and reforming network industries and associated state-owned enterprises; re-orienting trade policies and pursuing greater regional integration to boost exports, employment and innovation; lowering barriers to entry to make it easier for businesses to start, grow and compete; supporting labour-intensive sectors such as tourism and agriculture to achieve more inclusive growth; creating greater levels of economic inclusion, including through addressing high levels of economic concentration; addressing the weak job-creating capacity of the economy; boosting education and skills development; promoting greater beneficiation of raw materials; and addressing racial, gender and geographical inequalities which hamper deeper economic growth and development. Social partners have also made collective and individual commitments in respect of all the priority focus areas. It was acknowledged that each social partner,
not only government, has the resources and capabilities to contribute to the overall objectives of the economic reconstruction and recovery effort. Also of significance is that there is an appreciation of the trade-offs and sacrifices required from each social partner for the common good. It was further noted that while the contribution of each social partner on any of the specific priorities of the plan may not be equal or simultaneous, each social partner has an important role to play in the implementation of the overall plan. Social partners have also finalised a social compact on supporting Eskom. This is a critical intervention, once again driven by consensus, aimed at guaranteeing security of energy supply which is so vital for the economic reconstruction and recovery effort. The social compact on Eskom will also go a long way towards ensuring the operational and financial stabilisation of this strategic stateowned enterprise. Just as social partners played a key role in the drafting of the plan, they will also play an important role in ensuring its effective implementation.
As a start, all social partners have agreed to implement, without fail, all the commitments they have made as part of the plan. A clear implementation framework was also agreed to. It will be underpinned by the principles of simplicity and effectiveness, clear timeframes, defined responsibilities, the need to avoid duplication, as well as respect for the roles and authorities of the different social partners. The implementation frameworks will improve coordination and accountability amongst the social partners. It will also facilitate the fast-tracking of decisionmaking that will catalyze the creation of a conducive environment for investment to flourish as well as build consumer, business and public confidence. Drawing from the collective energies, commitment and willingness to work together by social partners, and inspired by the consensus-driven successes of the past, there is no doubt that our country is now firmly on a path to economic reconstruction and recovery. All hands are on deck and the goals we have set for ourselves are within reach.
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PBF WEBINAR
A MASTERCLASS IN RESILIENCE AND RECYCLING SIPHO MBELE, Executive Manager of the Progressive Business Forum (PBF), unpacks a webinar hosted by the PBF to empower SMMEs and our community to work in harmony with nature
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fter six months of lockdown, the South African economy is coming back to life. With this in mind, the PBF in association with Life Retreat hosted an online Masterclass, or webinar, on resilience and recycling. The class forms part of the PBF’s mandate to empower SMMEs with the knowledge and tools they need to thrive. We live in a time when resolve is needed most, and confidence is the means to ensure inclusive growth. Resilience and recycling are the building blocks of a better future for all, which made them the obvious choices as the subjects to be discussed and dissected at this bold and important initiative.
URGENT ACTION The PBF webinar was held just one day after the 75th United Nations General Assembly where, as an important sideline, a summit on biodiversity with the theme, “Urgent Action on Biodiversity for Sustainable Development”, was held. In his address to the summit, President Ramaphosa echoed the sentiments of the Masterclass when he said that, “The coronavirus pandemic has badly affected the ability of national economies to respond to challenges like environmental degradation and climate change. In pursuit of sustainable development, our recovery strategies can, and should, strike a balance between environmental and economic imperatives. As responsible global citizens, we need to change our behaviour and consumption patterns and integrate approaches to improve conservation of species and
ecosystems. As we emerge from the coronavirus pandemic, not only must we raise the ambition of our biodiversity targets, we must also ensure that the recovery effort fosters greater and not less harmony with nature. Through improved awareness, collaboration and collective determination, we can ensure that we build back both better and greener.”
A CALL TO ACTION There is a telling proverb that states, “We do not inherit the earth from our ancestors, we borrow it from our children.” The proverb, together with the words of President Ramaphosa, is a call to action for all of us to change our personal behaviour and recycle where we can in order to stop climate change. And there are more benefits.
REVIVING THE JOB MARKET Statistics South Africa released the Quarterly Labour Force Survey (QLFS) which revealed that 2.2 million people lost their jobs in the second quarter of 2020. Recycling as an industry can turn back the trend as it undoubtedly contributes to job creation and is yet another way to recover after Covid. In the words of the president: “Our success in responding to this unprecedented crisis will be measured by the speed of our labour market recovery. We must ensure that every job lost during the crisis is replaced and that more jobs are created so that we can meaningfully reduce unemployment.”
“Our recovery strategies can, and should, strike a balance between environmental and economic imperatives” - President Ramaphosa LIVING IN HARMONY WITH NATURE The author Robert Swan said that, “The greatest threat to our planet is the belief that someone else will save it.” The webinar served as a timely reminder that sustainable development, biodiversity and recycling is the obligation and duty of all countries of the world – and a multilateral approach is required to place the global community on a path towards realising the goal of the 2050 Vision for Biodiversity, which is to work towards a world where humans are living in harmony with nature.
SIPHO MBELE
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Welcome to City Lightz, your number one, Level 1 BEE electrical contractor. At City Lightz it is our mission to provide our clients with an efficient, professional and environmentally friendly service that exceeds expectations, on time every time. We are a diverse company and believe that each member of our team not only adds value to our company but also our clients. We specialise in the following • Lighting – Planning and construction of new installations as well as maintenance and repairs of existing infrastructure. • Reticulation – New construction of overhead and underground, medium and low voltage electrical networks as well as the maintenance and repairs of existing electrical networks. • Tree cutting – The trimming and removal of growth to safeguard existing electrical infrastructure. We are currently based in Durban and Pietermaritzburg and looking to expand
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SA’S SOCIAL PACTS TO OVERCOME COVID-19 WILLIAM GUMEDE, Associate Professor at the University of the Witwatersrand, discusses social pacts, social dialogue and government credibility as solutions to tackle the dire post-Covid-19 economic and social crisis in SA
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COVER STORY
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outh Africa urgently needs social pacts at all levels between government, business and civil society, to quickly overcome the financial, social and political crises caused by Covid-19. What is meant by social pact is an agreement between social partners, whether government, business, organised labour or civil society, to jointly solve a development, social or economic problem. The pact describes the responsibilities, objectives, and timeframes in which to do so, of each signatory in the partnership.
Social pacts are usually struck in national economic, social and political emergencies. During the 2007-2008 financial crisis many European countries, such as Germany, Sweden and Finland struck social pacts to deal with company closures, job losses and social breakdowns. Ireland struck a social pact in the 1980s when the Celtic Tiger plunged into economic crisis, with unemployment rising to 15% and the national debt ratio spiraling to 115%. South Korea tried to put together a social pact after its devastation by the 1997 Asian financial crises when it was forced to seek
The advantages of social pacts during crises is that they mobilise a wider set of skills, resources and ideas, not only those in the state, to find solutions to complex problems
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a country bailout from the International Monetary Fund. In 2012, when Sweden saw a spike in youth unemployment the country stitched together a Jobs Pact, between social partners, to quickly increase youth employment.
LEVELS OF SOCIAL PACTS Social pacts could be struck at various levels: The national level between government, business, labour and civil society, as has been the case in Ireland, Sweden and the Netherlands during their economic crises pacts. At provincial level, as in Germany, where the state (province) of Brandenburg put together a regional social pact to increase investment, foster skills training and regional development. Another level that could work for social pacts is at a single industry or sector level. During the 2007-2008 financial crises, for example, Germany fostered a social pact in their metal and electrical industry to retain the competitiveness, sustainability of companies and secure jobs in a hardpressed industry. But social pacts could also be policy specific, for example to rally social partners behind policies to foster new jobs. This was the case in 2013 in the Netherlands, when the country fostered a social pact to soften labour flexibility which had increased job insecurity across many industries, when the country had the largest part-time economy in Europe. In addition, they could be struck at the company level. For example, in Japan and South Korea, Germany and Sweden, many companies have created social pacts at the workplace level, where employees are involved in decision-making, companies have joint management-labour structures to share company information, strategy and direction, and where employees share in profits.
INGREDIENTS OF SUCCESSFUL SOCIAL PACTS The advantages of social pacts during crises is that they mobilise a wider set of skills, resources and ideas, not only those in the state, to find solutions to complex problems. The engagement between the government, trade unions, civil society, communities and policy experts fosters
consensus over how to tackle a crisis. Not only are better quality policies brought about, but they are also more readily embraced by wider society, and therefore execution becomes more effective. There are some lessons in the core ingredients of successful social pacts. For national social pacts it is crucial that moderators in government, business, labour and civil society prevail to cobble together the pacts. That has been behind the success of Ireland’s 1980s and 1990s social pacts which turned the country into an economic miracle. When the governing Social Democratic Party in Sweden in the late 1970s turned hard left, the world’s most successful social pact went belly-up, when organised business left the pact. The Social Democratic Party soon lost power too. In all successful social pacts, the government must have credibility among all social partners. A prerequisite of government credibility is that it must not be seen as corrupt, which undermines trust in it to be a power broker. Furthermore, social partners must be inclusive in the broadest way possible. In Ireland, civil society, community organisations and the unemployed were represented in the social pact structures, negotiations and decision-making. In the Netherlands, representatives of the selfemployed were also part of the social pact arrangements – to make it as inclusive as possible. In Sweden, representatives of professional organisations have been part of social pact negotiations. But social dialogue forums must also include non-social partners. In Germany, it is compulsory to have independent experts, not associated with government, business or trade unions, as part of social dialogue forums, in order to get a perspective beyond the horizons of only those of the social partners. Although, it is not always absolutely necessary to have a dedicated social dialogue institution for a national social pact to be successful. Germany has no national tripartite social dialogue institution. Informal tripartite meetings between social partners are scheduled according to need.
Not only are better quality policies brought about, but they are also more readily embraced by wider society, and therefore execution becomes more effective If a country does have a dedicated social dialogue institution, it must be seen as credible, as having the requisite capacity and competence. In the Netherlands, recommendations from the national dialogue agency, the Social and Economic Council (SER), are debated in Parliament. Government is required to explain whether or not its advice will be followed, and if not, why not. The Dutch SER also has an advisory role to Cabinet. The Dutch SER not only has representatives from social partners, government, business and trade unions, but also has independent members, not aligned to the social partners. Business representatives are very broad, including representatives from big business, small business and agriculture. Trade union representatives are from all national federations, and from the union for professionals. Recently, the self-employed have also received seats in the Dutch tripartite social dialogue institution.
SOCIAL PACTS DURING CRISES Forming social pacts at all levels of South African society – forging partnerships between the public sector, business, labour and civil society – is going to be crucial to rebuild the post-Covid-19 economy, social order and politics. The state on its own cannot overcome the Covid-19 crises. The state simply lacks the capacity, leadership and ideas to do so. In a country crisis, such as the multiple crises caused by Covid-19, it is even more crucial, when the state lacks capacity, resources and leadership, because it brings non-state skills, ideas and resources to help tackle the calamity. Partnerships not only bring goodwill, they also bring skills,
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resources and wider buy-in for policies, decisions and delivery. Attempts at cobbling together national social pacts in the post-1994 period have mostly been unsuccessful in South Africa. Sectoral or industry-based social pacts have fared moderately better. The gold crisis in the late 1990s, saw a reasonably successful social pact between goldminers and trade unions, to safeguard the sustainability of the mines, the competitiveness of the industry and preserve job security. In the mid-2000s, trade unions and industry came together with a social pact strategy to rescue the textile and clothing industry, ensure its global competitiveness and secure jobs – government supported the strategy. It is important to observe that in both the gold and textile crises, the social pacts were initiated by business and trade unions, bringing government on board, who supported it. However, there have been no attempts to
foster provincial-based social pacts. There have been no attempts to foster social pacts at municipal level either. Neither have company-based social pacts been widely attempted in South Africa, except for a few farm-based ones, some with reasonable success. Both provincial-based, municipal-based and company-based social pacts offer great potential to find post-Covid-19 economic, political and social solutions to seemingly intractable problems.
WHY HAVE ATTEMPTS AT NATIONAL SOCIAL PACTS BEEN SO DIFFICULT IN SA? Social partners involved in South Africa’s social dialogue have not been diverse enough, meaning decisions therefore often do not have broad societal buy-in. Since 1994, South Africa’s trade union make-up has changed dramatically. Yet, many trade union federations are not included in the current social dialogue forums, undermining
the legitimacy of any social pact. South Africa’s social dialogue forums do not include non-social partners. Professionals, as a separate constituency, are also not included in social dialogue forums, unlike in Sweden. Neither are the self-employed, like in the Netherlands. Furthermore, unlike the Netherlands and Ireland, the unemployed are not representative in national social dialogue. Yet, in South Africa, more people are out of work than in employment. SMMEs are not substantially included in social dialogue efforts in SA. Most South Africans employed are in the informal sector; yet the informal sector is not included as an important constituency. Civil society are also excluded in social dialogue, like they are in Ireland. Distrust between South Africa’s social partners remains deep. Unlike in the Netherlands, where social partners can set aside their deep-seated opposition to each other, it appears very difficult to do so in
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South Africa. The apartheid divisions remain entrenched between mainly white business and the black trade union movement. However, black and white businesses are often not able to collaborate because of racial divisions. But South African social partners also appear too rigidly ideological, often seeing the world in terms of fixed ideological lenses, making compromise, so crucial to successful social pacts, rather difficult. South Africa’s government itself, because of the perception of incompetence, lack of quality leaders and corruption also lacks the credibility, authority and trust to be seen as an honest social dialogue host. At the heart of successful national dialogues in other countries have been governments seen as reasonably honest, capable and governing in the widest national interests; not seen as governing in the interest of the governing party, leaders or for self-interest. If a country does have a dedicated social dialogue institution, it must be seen as credible, as having the requisite capacity and competence.
SA’S SOCIAL DIALOGUE INSTITUTION South Africa’s national social dialogue
institution, the National Economic Development and Labour Council (Nedlac) for a long period has lacked credibility. One of the reasons of course is that not all the critical social partners are included at Nedlac, making the organisation not representative enough. Nedlac also lacks independent members, who are not aligned to social partners, as is the case in the Dutch SER. But Nedlac is often marginalised by government itself. Some government leaders often wrongly believe that government can go it alone or send policy directives by diktat, and social partners and wider society will just magically fall in line. Nedlac does not have the requisite authority. Whereas in the Netherlands, recommendations from the national dialogue agency, the Social and Economic Council (SER), are debated in Parliament, this is not the case for recommendations from Nedlac. Furthermore, in the Netherlands, the government is required to explain whether or not the advice of its Social and Economic Council will be followed, and if not, reasons are given. There is no such obligation in South Africa for government to answer to
Nedlac’s recommendations. The Dutch SER also has an advisory role to Cabinet. This is not the case for Nedlac in the South African context. Nedlac has been criticised in recent years for lacking the capacity to lead complex social dialogue negotiations. It was mired in allegations of corruption, undermining the credibility of the institution. Rebuilding Nedlac’s capacity will be crucial if it is to remain as the institution hosting national social dialogues in the post-Covid-19 era.
WILLIAM GUMEDE Questions? William.Gumede@wits.ac.za
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DRIVING LOCALISATION AND INDUSTRIAL AGILITY KEY TO SA’S POST-COVID RECOVERY “We must find our niche in a new environment re-shaped by localisation, digital technologies, greener industries and industrial agility,” says COMRADE EBRAHIM PATEL, Minister of Trade, Industry and Competition
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TRADE AND INDUSTRY
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n 2019, the ANC lifted the commitment to localisation to a key pillar of our electoral platform. The Manifesto committed to government policies that would strengthen investment for inclusive growth, with an industrial plan to support localisation. The coronavirus pandemic and its economic fallout has led many countries across the world to look at localisation with renewed interest.
During the early days of the pandemic, global supply chains were disrupted and today many economies are counting the economic cost of the measures to contain the spread of the virus, with the world faced with potentially the worst global recession since World War II. China is experiencing its slowest annual growth since the death of Mao Zedong in 1976. In May this year, the Bank of England said the UK might experience its worst recession in 300 years and the US has recorded its highest level of unemployment since the Great Depression. Both the UK and US have already in the three months from April to June this year experienced their steepest decline in quarterly output since records began. President Ramaphosa has spoken about the wider economic recovery and reconstruction plan that is being developed. This wider plan includes the mobilisation of funding for businesses in need; investment in infrastructure-driven growth through building of bridges and roads and clinics and renewable energy plants which will bring more young people into jobs; and greater use of locally-made inputs of steel, cement and machinery that can enable infrastructure investment to stimulate the growth of manufacturing. However, the slowdown in the economy as a result of the impact of Covid-19 and the reprioritisation of resources towards addressing the immediate social and healthcare needs, means the government will have to carry out its responsibilities within a very constrained environment. For example, the Department of Trade, Industry and Competition (dtic), which I oversee, has had its budget cut by R1.8-billion or 16% for the 2020/21 financial year. Agencies that rely in part on income from the public or their investment holdings have had sharp reductions in their income and resources and, at the same time, the needs of firms and workers have grown as a result of the damage caused by the pandemic.
The import of finished goods is the export of jobs. Accordingly, an industrial plan to support localisation was a key commitment of the ANC to our people. Every year we spend 25% of our GDP on imports, much of which could be produced here To repair the damage of Covid-19 and reconstruct the economy to create more jobs, bring more young people into entrepreneurship and increase economic inclusion, we need to think boldly and implement smartly. We need better coordination, fresh thinking and a different way of working. There can be no return to the ‘old normal’. And nor should there be. It was not ‘fit for future purpose’. Established industries, though critical in our economy, will not be able to create the millions of jobs required. As a country, we must find our niche in a new environment re-shaped by localisation, digital technologies, greener industries and industrial agility. To prepare for the post-Covid world, we are now strengthening efforts around reconstruction and recovery, including through engagements at NEDLAC about broader pacts with workers and businesses, focused on saving as many firms and jobs; identifying new opportunities; embracing digital technologies to recover and change; addressing economic inclusion with greater urgency. Prioritising efforts to save firms and jobs is critical. First, to strengthen economic dynamism, we are developing sector masterplans. This financial year, we completed a plan
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for the sugar industry and are now following it up with additional ones, including for furniture which employs 65 000 people in SA with the potential for many more small-scale artisans; plus another for the steel industry, the foundation of our industrialisation, employing nearly 250 000 people. Complementing these new pacts, we need to ensure implementation of what has been agreed, which will be the focus of masterplans for autos, clothing, sugar and poultry, which together already directly employs more than 500 000 people. Second, to help pivot the economy from its reliance on imports, to greater levels of local manufacture, we are considering new agreements on localisation and supplier development, following discussions with CEOs of fast food producers, hardware stores, grocery retailers, food and consumer goods manufacturers and Clothing, Textiles, Footwear and Leather (CTFL) retailers and manufacturers. The import of finished goods is the export of jobs. Accordingly, an industrial plan to support localisation was a key commitment of the ANC to our people. Every year we spend 25% of our GDP on imports, much of which could be produced here. We must call on every consumer and business to make choices which support the growth of local industry, and bring jobs back to South Africa. Third, in the area of trade, we are providing support to local firms, both in the domestic market and for exports; we are busy with talks with the EU on trade access; and are taking a number of actions to strengthen actions against illegal imports. Following the Covid-19 disruptions, we are now engaging on finalising modalities to enable the African Continental Free Trade Area (AfCFTA) to commence trade by the start of 2021. Africa is home to 17% of the world’s people, and yet only 3% of its economic output. The AfCFTA presents a platform for greater regional integration, growth and employment and is a commitment of the ANC election Manifesto. It’s a once-in-a-generation opportunity to expand our markets and
our productive base, and we must work tirelessly with our continental partners to ensure its success. Fourth, on investment: we are now focusing on consolidating the presence of firms who have existing operations and help those who made investment pledges, to bring projects to fruition. New areas for investment include deepening our production of PPEs, medical equipment and pharmaceuticals. South Africa has a history of innovation; and innovation drives investment. This has been demonstrated by the success of the National Ventilator Project which – in a space of four months – has established medical ventilator production in South Africa, with the potential to export to the rest of the continent. We will also continue our efforts to deepen the beneficiation of our mineral resources, so that we create high-value-add industries that support growth, investment and jobs. Fifth, on transformation: Government makes significant resources available to black industrialists through the IDC, NEF and government incentive schemes. This need to be complemented with nonfinancial support to black industrialists women-empowered businesses and worker empowerment must become a stronger focus, and we will work on ensuring that our legislation reflects these ambitions. The 54th ANC National Conference highlighted the importance of worker involvement in company boards. Transformation includes addressing high levels of economic concentration and helping to build stronger, agile small and medium businesses. Sixth, on Special Economic Zones (SEZ): National government is shifting the focus from simply providing funding, to playing a stronger role in improved governance, advocacy and mobilising investment. A special unit is being established at the IDC and DBSA to assist provinces to use the R4-billion budget over the next three years more effectively on SEZs and industrial parks. We must nurture township and rural enterprises, and
diversify the economic centres across our country. Finally, we must find new ways to protect public resources so as to ensure that corruption will not get in the way of effective delivery – strong forensic and internal audit capacity needs to be built across government to undertake the required investigations of transactions by agencies where these are warranted. To quote the ANC Manifesto: “Corruption has negative consequences on our economy and society, impacting on the integrity of our institutions, our leaders and undermining the very moral and ethical basis of our young democracy.” We are further working to improve the capacity of the state through smart recruiting and agile partnerships with social partners. Covid-19 has exposed the fragility in the global economy. Africa must grasp this opportunity to redefine its role in the world – to break from the post-colonial history as simply a supplier of raw materials and this crisis must provide the jolt for our efforts to industrialise. A profound re-boot is now possible, as well as necessary. History suggests that from the greatest human crises, the greatest human advances can be made. So, in the darkest hour, we must find the resolve and strength to build a new economy – fit for future purpose, fair and just, sustainable and resilient.
COMRADE EBRAHIM PATEL Minister of Trade, Industry and Competition
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Mabe-Tinyi Business Enterprise Mabe-Tinyi Business Enterprise is a black-owned company, owned and managed 100% by a dynamic woman (Mabejane Ellina Thoka).Established in 2002, the company has grown from strength to strength and currently provides the following services across South Africa: Electrical Installa�ons, Electrical Maintenance, General Building Maintenance, Vegeta�on Management, Cleaning Services and General Trading.
Mabejane Ellina Thoka
A business woman, an educator/trainer, development prac��oner and manager. The experience she earned as a business woman, teacher, manager and development facilitator has enriched her skills in design, planning and implementa�on of projects.
Services
Projects
- Electrical installa�ons - Electrical maintenance - Vegeta�on management - General trading (tree cu�ng) grass cu�ng - Hor�cultural services - Cleaning services - General building maintenance
- Electrifica�on for Eskom distribu�on (Limpopo/ North West/Mpumalanga - General electrical maintenance at Ma�mba Power Sta�on - General building maintenance at Kusile Power Sta�on - Electrical maintenance at Lethabo Power Sta�on - Cleaning services at Ekurhuleni West College - Supply of electrical material for Mitsubishi Hitachi (Medupi Power Sta�on)
EMAIL mabe�nyi@mweb.co.za | TELEPHONE 015 291 4522 | MOBILE PHONE 082 491 2035 FAX 086 672 4186 | ADDRESS 28 Dorp Street, Polokwane, 0700, South Africa SATELLITE OFFICES Vanderbijlpark & Lephalale
AFRICAN UNION COMMUNICATIONS SA THE PREFERRED BROADCASTING SYSTEM INTEGRATORS IN THE AFRICAN CONTINENT • • • • • • • • • •
Customer Requirement Analysis Turnkey End to End Solutions for Digital Multimedia Platforms DTT Migration Strategy Coverage Planning and Frequency Allocation Solution Architecture Design System Interoperability Project Management Network Implementation Training – Skills Transfer Maintenance (Service Level Agreements)
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Our highly-skilled engineering team maintains and supports critical turnkey systems that help our client’s businesses grow. These systems comprise professional broadcasting systems built both in South Africa and on the continent. We work closely with international supplier support teams to ensure that dedicated engineering resources are assigned to each project, resulting in unmatched service excellence and superior cost-savings.
Tel: +27 (0) 12 001 8670 | E-Mail: tebogo.rashama@aucom.co.za Website: www.aucomsa.co.za
12/10/20 9:02 AM
GAUTENG TOURISM SET TO DRIVE ECONOMIC RECOVERY Gauteng is uniquely positioned to be a catalyst for growth and stability through its tourism sector, says BARBA GAOGANEDIWE, Acting CEO at Gauteng Tourism Authority
T
he tourism sector is undoubtedly one of the key economic growth and development sectors not only in the Gauteng province but in the country and the world. It has the potential to mobilise consistent foreign currency into the economy, stimulate local demand and interface very well with other sectors like manufacturing, transport and logistics, finance and commerce, sporting and food production, and creative industries. For every tourist that arrives on our shores, over six jobs are created ranging from tour operators, hotel cleaners, culinary chefs and entertainers, to transportation and financial services providers. It is for this reason that the Gauteng Tourism Authority (GTA) is mainstreaming this sector across the different work disciplines.
THE GAUTENG TOURISM AUTHORITY The GTA is charged with the responsibility of positioning the Gauteng City Region (province) as a globally competitive tourist destination leveraging the trade, investment, competitive sport and creative sectors, among others, to do so. The GTA is developing targeted and programmatic interventions centred around destination marketing, visitor experience and the bidding and hosting of business and leisure events to grow the economy. For a province that accounts for almost 33% of the country’s Gross Domestic Product (GDP), 9% of Africa’s GDP, and which is a serial net exporter of domestic travel in South Africa, Gauteng possesses
the punch and positioning to lead economic recovery for the benefit of the country and the region. This is a positioning they are not taking for granted. They have used the period of the hard lockdown this year to strengthen their internal capacity – to engender thought leadership, develop partnerships and drive strategies. All in order to stimulate demand for their offerings and adapt their processes and systems to the new normal, with the adoption of a digital-led strategy and approach. The Covid-19 pandemic has clearly had a significant effect on the tourism industry. This is reflected in the forecasted performance for 2020 and the outer years. As the country’s number one destination for international arrivals and Africa’s preferred playground for entertainment, lifestyle, fashion, shopping, sporting and quality musical experiences, the province is reeling from the devastating impact of the pandemic on its revenue, employment figures and the social and solidarity actions brought about by the visitor economy. Cosmopolitan and globally competitive city regions like Gauteng across the world became the epicentres of the coronavirus. With a strong multinational and expatriate community, mobile and youthful population, dynamic cultural vibe and the quest to win against all odds, the province saw a rise in the numbers of Covid-19 cases and deaths, but also recoveries. Encouraged by the progress made in fighting the coronavirus as a united pact, the strengthening of health systems
and infrastructure and human solidarity demonstrated, the GTA believes we are on the right path to recovery, and reignition of the tourism sector and the broader economy. They have already secured massive international business events thanks to their expert bidding and hosting machinery, with a projected R2.3-billion injection into the provincial GDP. They are prioritising airlift and cross-border transportation and logistics capacity to leverage the Africa Free Trade opportunities, inter-regional trade and the ever-increasing visiting friends and relatives (VFRs) market segment. They are also implementing, as part of the provincial tourism recovery plans, a dedicated marketing campaign aimed at encouraging locals to be tourists in their own backyard. Domestic tourism growth is key to stimulating tourism demand, showing market confidence and creation of local consumption and production of local products and experiences. The GTA encourages locals to take the responsibility to get to know their own “hood”, local tourist attractions, experiences and
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products – to buy locally, live life locally and become a champion host to visitors this festive season. Underpinning this work is their strict adherence to the Covid-19 health and safety protocols, taking personal responsibility for actions and instituting measures to protect locals and visitors alike from any possible infection. They are putting the health and wellbeing of their people first, while balancing the need to reignite the economy. To that effect, the GTA is working with all partners in instituting responsible and heightened coordination of health measures, new travel etiquettes and the use of data- and technology-driven interventions to guide recovery and enhance competitiveness.
GROWING GAUTENG TOGETHER VISION 2030 Tourism, and the broader visitor economy, is a key feature of the Growing Gauteng Together Vision 2030. It is also the mainstay of the Gauteng Economic
Recovery Plan and an expected major beneficiary of the recently announced Reconstruction and Recovery Plan of government. Quality destination infrastructure creates liveable cities, integrated and sustainable neighbourhoods, improved living standards, a favourable share economy growth, and a work, stay and play environment. All of which are important ingredients in building a thriving destination brand. Small- and medium-sized enterprises – which make up around 80% of the tourism sector – are expected to be the major beneficiaries of the revitalised strategies and action plans. The GTA is mindful of the impact of this sector on vulnerable communities who rely on tourism as a vehicle to spur their development and economic inclusion. They are uncompromising in directing their funds to drive the development, strengthen the competitiveness and secure market access for these communities.
Due to its cross-cutting economic and deep social footprint, tourism in Gauteng Is uniquely positioned to help societies and communities affected to return to growth and stability. Over the years, the sector has consistently proven its resilience and its ability not only to bounce back but to lead the way to economic and social recovery.
BARBA GAOGANEDIWE Questions? barbag1974@gmail.com
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MAFOKO SECURITY PATROLS Securing all your Security needs
WHAT WE DO
OUR HISTORY
Mafoko Security Patrols specializes in physical security and electronic
Mr. Erasmus Nare founded and started operating Mafoko
services. Our services are provided to a range of customers from
Security Patrols (Pty) Ltd in December 2004, with a staff
Private to Corporate and Government clients. We tailor make and
complement of less than 10.
implement security measures according to each client’s security
Mafoko Security Patrols is the biggest 100% black-owned
needs. We also conduct risk analysis. Our technical teams have
security company with a B-BBEE level one rating in
over 20 years combined technical experience and our team can
South Africa.
design and implement successful electronic security systems. We have been operating in the security industry for 15 years providing effective and excellent quality service.
Mr. E. J. Nare (Director)
Mr. L. T. Nare (Director)
Mrs. T. P. Mdakane (Director)
OUR SERVICES CONTROL ROOM To enhance opportunities and reduce threats to people’s lives and assets, Mafoko Security Patrols makes use of a Control Room that receives real-time feedback from the GMS and patrol guard on site. There is a site manager also stationed on the premises to monitor the patrol guard.
PHYSICAL SECURITY Our physical guarding unit offers a variety of services beyond just the standard stationary guarding. Our security officers are PSiRA registered and trained, and on-the-job trained through a number of security-related courses such as Health and Safety, First Aid, Customer Relations and Fire Prevention.
INVESTIGATIONS UNIT
GUARD MONITORING SYSTEM (GMS) Guarding is a crucial aspect of risk management. To remove the risk of human error, theft, vandalism and criminality, Mafoko Security Patrols makes use of Guard Monitoring Systems, which help to ensure that patrol officers are committed to their specific tasks even when they are alone, keeping track of patrol guards’ movements on duty.
Mafoko Security Patrols has a Special Investigation Team, who have more than 10 years’ work experience in the South African Police Service (SAPS) and hold policing and security qualifications from top South African Universities. Our investigation team is effective and trustworthy, including intelligence units, undercover operatives and crime investigators who are experts in their trained field.
Tel: 012 342 0013 | Fax: 012 342 0019 | Email: info@mafokosp.co.za
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WHITE COLLAR CRIME INVESTIGATION We investigate white collar crimes and provide our expert advice in key areas of regulatory focus, such as anti-corruption, money laundering, compliance and representation related to risk assessments, investigations and criminal enforcements. GENERAL THEFTS IN THE WORKPLACE Our agents are experienced in investigating workplace crime and alleged offences such as theft. An array of techniques and technologies can be used to carry out investigations in the workplace. UNDERCOVER OPERATIVES Mafoko Security Patrols can deploy highly qualified undercover operatives to discreetly investigate criminal, civil, corporate and industrial matters as well as copyright and patent infringements in commercial and industrial settings. BACKGROUND CHECKS Mafoko Security Patrols is able to conduct a wide range of criminal background checks, assessments and verifications. SECURITY, RISK AND FRAUD MANAGEMENT Our company also conducts investigations related to security, risk and fraud management, awareness and training in a variety of areas. TRAINING Mafoko Security Patrols offers security, risk and fraud awareness training to clients’ staff (management and employees as well as stakeholders). CRIMINAL INFORMATION MANAGEMENT Mafoko Security Patrols uses integrated application software and systems to capture and manage information related to incidents, risk management, investigative and law enforcement environment. SURVEILLANCE AND COUNTER SURVEILLANCE TECHNOLOGIES Mafoko Security Patrols provides expert service in these areas including CCTV, hidden cameras with night vision and motion sensors, covert equipment and camera installations, mobile/static surveillance and electronic counter surveillance.
AVIATION SECURITY Mafoko Security Patrols considers airport security to be fundamental. The company delivers on all security required at airports in South Africa. PATROLS One of the more effective methods used in preventing and deterring aviation landside attacks is to perform regular patrols around the airport environment. FOOT PATROLS Foot Patrols take place in all landside areas, but specifically, the parkade, terminal and public areas, check-in counters, arrival halls, cargo precinct and remote sites. VEHICLE PATROLS Mafoko Security Patrols vehicles, patrol the airport premises, checkpoints to the security restricted area, heightened points at the outer perimeter and other vulnerable areas. EXPLOSIVE DETECTION DOGS (EDD) Mafoko Security Patrols provides Explosive Detection Dogs upon the client’s request or in the event of suspected bomb threats. REMOTE AND STAND-OFF SCREENING In the event of a threat, Mafoko Security Patrols begins screening before people enter the airport terminal. Mobile technologies or techniques are also provided, where appropriate. BEHAVIOUR DETECTION Mafoko Security Officers are also trained to analyse the behaviour of people in public areas to identify suspicious behaviour. CCTV Is a critical surveillance tool that is very effective in identifying and pre-empting possible threats.
ELECTRONIC SECURITY SYSTEMS Our Electronic Security Division excels in Design, Supply, Installation, and Maintenance of electronic security and safety systems. It has over 20 years’ experience in the electronic security and systems industry, with technicians on the ground who are highly trained and qualified artisans.
NATIONAL TACTICAL RESPONSE UNIT This Unit is strictly trained and seasoned in handling small, medium and large-scale crowd control measures to prevent further escalation that leads to violence, damage to property and staff.
www.mafokosecurity.co.za
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THE NETHERLANDS: PARTNERSHIPS FOR A PROSPEROUS FUTURE
Dutch Ambassador, HAN PETERS, opens up a dialogue on partnering in using climate change, the private sector and the 4IR to rebuild our countries sustainably and inclusively
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s a global community, we find ourselves in a much more vulnerable position than we did a year ago. Our economies have been ravaged, our resources stretched to the limit and the spirit of our nations tested. National lockdown measures, while necessary, forced us to become ever more inward-looking as we resolved to safeguard our people. As we now enter a new phase of consolidation and rebuilding, we are presented with an enormous opportunity to not only build back what we lost, but to build back better. The Netherlands has gained extensive knowledge and know-how in innovative water management, climate smart agriculture, renewable energy and the circular economy. This combined with our strong track record of public-private cooperation, makes us well positioned to contribute to the very necessary dialogue on sustainable and inclusive growth. The Netherlands is committed to achieving this growth both at home and around the world. To preserve our world for future generations, ambitious goals are needed as well as the tenacity in the pursuit thereof. We believe that by partnering to create the necessary enabling conditions, we can achieve significant progress in our shared economic, social and environmental objectives.
PARTNERS IN INTERNATIONAL CLIMATE ACTION Three years ago, the world set the principles for an effective global climate policy for the 21st century.
In Paris there was momentum, a real sense of urgency as we signed the Paris Agreement. Now in the middle of our climate crisis and global pandemic, we need to recapture that urgency, as climate change affects us all. In the Netherlands we are working hard on raising the bar. Our goal is to reduce domestic emissions by 49% by 2030 and 95% by 2050. We have laid down these measures and more in a National Climate Agreement – an agreement negotiated with over 150 partners from the private and public sector as well as civil society. For the Netherlands, it is self-evident that climate mitigation and adaptation should go hand in hand. Because the Netherlands partly lies below sea level, the rising sea levels and more extreme weather conditions are of great concern to us. It is no coincidence that the Global Commission on Adaptation was launched in our country in 2018. As a nation that has been fighting against water for many centuries, we’re looking forward to hosting the Climate Adaptation Summit on 25 January 2021, the first-ever dedicated platform of global leaders aimed at firmly placing the world on a pathway to accelerated adaptation and resilience. But climate doesn’t stop at borders and no country can solve this problem alone. Both developed and developing nations need to partner at this critical time in protecting our world for generations to come. The Netherlands is strongly committed to building these partnerships. In fact, we have launched a €160-million “Dutch Fund for Climate and Development”
to support developing countries (including South Africa) fight and adapt to climate change, thereby enabling a green and just transition for all.
PARTNERS IN MOBILISING THE PRIVATE SECTOR The private sector can and should play a key role in building back better and reaching the Sustainable Development Goals by 2030. Dutch companies are focusing increasingly on the socioeconomic and ecological impact of their value chains. Responsible business conduct is a critical component in how we do business, both locally and internationally. One example is the Coal Covenant, in which the energy sector and Dutch government reached agreement on how to avoid social and ecological damage in regions where they source their coal (including South Africa). Another way in which business can become more sustainable is through maximising circularity. The circular economy is about reusing resources and reducing waste and Dutch companies are pioneering in circular solutions. Examples of local public/private collaborations working on circular economyrelated initiatives include Dutch entrepreneurs
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COUNTRY FOCUS
the application of innovation and design-led approaches. This allows us to connect key stakeholders from the Netherlands and South Africa using the triple helix approach (public, private and knowledge). In doing so, we create platforms for collaboration and sustainable innovation within the green economy, while simultaneously supporting inclusive digital development. Examples of such platforms include our bi-annual #cocreateMYCITY event, the annual #cocreateDESIGN Festival, the annual #cocreate2ACCELERATE Scale-up programme for local entrepreneurs and the NL-SA Cybersecurity Conference done in partnership with local and national government, academia and the private sector from both South Africa and the Netherlands. We are also very excited about our MOU with the South African Department of Science and Innovation, which provides a solid framework for both countries to collaboratively work on green innovation and technology developments. working with the eThekwini municipality to create a resource hub in KwaMashu. They aim to source organic waste and transform it into new products that can be used in sectors such as construction. In Nelson Mandela Bay, Dutch companies are also sourcing organic waste to produce bioenergy for clean cooking and biofuels. The success of these projects will show the significant job-creating potential of circular economy alternatives in South Africa as well as the power of strategic partnerships. The Netherlands is the second-largest exporter of agricultural products in the world and one of the largest importers of South African fresh produce. For a long time, collaboration in the agricultural space between the two countries has helped to enhance sharing of knowledge and technologies. A good example is the Research and Innovation in Climate Smart and Sustainable Agriculture programme – seeking to create a platform for Dutch and South African researchers and innovators to work together on technological solutions through a consortium. Furthermore, a Research and Innovation Virtual Mission took place from 13-16 October 2020, after which it is envisaged
that technical teams from both countries will start work on developing research and innovation focus areas in the agricultural sector.
PARTNERS IN MAXIMISING THE FOURTH INDUSTRIAL REVOLUTION The Fourth Industrial Revolution will fundamentally impact how we live, work and interact with one another at both micro and macro levels. This revolution brings with it a plethora of challenges: states and businesses can be vulnerable to cyberattacks, and human rights (privacy, speech) are under growing threat. Furthermore, because of the digital divide experienced in South Africa, younger generations face increasing difficulty accessing quality education and the job market. However, the fourth industrial revolution offers many opportunities too, especially in our efforts to build back better. It is for this reason that the Dutch mission network in South Africa has developed a thematic niche focus area, “Economy 4.0”, in our economic diplomatic work. The team working within this theme focus on identifying and showcasing key opportunities in the application of turnkey technologies, and
BUILDING BACK BETTER, TOGETHER An intelligent economic recovery is a green recovery. Scientific evidence clearly shows the major benefits of green economic recovery over business as usual. Building back better therefore just makes good common sense. But where to start? We believe it is all about creating the right partnerships, about tackling this journey together and collaboratively grabbing a once-in-a-generation opportunity to rebuild our world with a green economy.
AMBASSADOR HAN PETERS Questions? Pre-ea@minbuza.nl
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LOCAL BUSINESSES EMPOWERED BY NEW SEZ Morale is high at the Tshwane Automotive SEZ construction site as companies aim to meet their June 2021 deadline, but none more than in Moago Construction’s camp
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t is difficult to miss the passion in Mr Benny Serepong, as he talks about the involvement of his company in the construction of the Tshwane Automotive Special Economic Zone (TASEZ). He is energised by the fast pace on site, as all players work tirelessly to meet the June 2021 deadline for completion, and he hopes the project contributes towards changing and accelerating the pace at which infrastructure projects are done in the country. Having been in the construction business for the past 18 years, his company, Moago Construction, is one of the small business enterprises that are benefiting through sub-contracting opportunities in the TASEZ initiative. What is being built is a massive Special Economic Zone that will house a number of automotive component manufacturers, who will supply parts to Ford Motors Company South Africa (FMCSA). This will ultimately boost Ford’s ambition to become the world’s largest Ford Ranger pickup plant. President Cyril Ramaphosa launched this R4.3-billion initiative in November last year. The project brings together three spheres of government – the Department of Trade, Industry and Competition (the dtic), Gauteng Provincial
Government and the City of Tshwane – in a partnership with the private sector through Ford. The SEZ is situated next to Ford headquarters in Silverton near Mamelodi and Nellmapius townships. Serepong’s Moago Construction was recently appointed for a short-term contract to do bulk earthworks at the construction site. He is passionate about construction, and credits his uncle for infusing the love for the industry from a young age. He learnt the skills and tricks of the trade while working for him to make ends meet for his poor family. He tried to refocus his attention elsewhere and to make a living differently later, by studying Industrial Psychology up to Honours level. He further pursued Leadership Development studies with the INSEAD Business School in France but found it difficult to resist the urge to follow his first love – construction. The TASEZ contract has enabled Serepong’s company to offer short-term employment to 39 people; 70% are from the local areas of Mamelodi and Nellmapius. “The workers we have employed are a blend of unskilled, semi-skilled and fully skilled individuals on the ground to do operations and administration work on site. “The contract also affords us to bring in 30% of our own workers, so I have also
Moago Construction, is one of the small business enterprises that are benefiting through sub-contracting opportunities in the TASEZ initiative brought in professionals from my own company, among them, civil engineers and quantity surveyors.” Moago Construction is a grade 7 level company through which Serepong has garnered extensive experience building luxury private houses in some of Gauteng’s suburbs. He has also been involved in several government projects over the years, building schools, libraries and health facilities. He believes the TASEZ is an excellent initiative, which will contribute to economic growth and job creation in the country. “Private-Public Partnerships such as this one are critical in igniting the economy of the country. “I am happy to see that the local community was consulted extensively in this project.
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CONSTRUCTION
“It has made our work easy as we have not experienced any interruptions due to public complaints. “I feel energised by the tight deadlines set for completion of this work. Staff morale on site is quite high and I believe strongly that as a country we should adopt this fast pace in all infrastructure projects and make it a dominant culture,” says Serepong. During a site inspection in September, the Director General of the dtic, Mr Lionel October, revealed that all plans were on track to finish all construction work by June next year. There has also been a
very clear direction by government to ensure the project opens up opportunities for Small, Micro and Medium Enterprise (SMME) operators, with an estimated R25-million set aside for their training, mentorship and support. In this project, government’s localisation policy imperatives have been surpassed and currently 45% local businesses have been empowered in the construction phase. Once operational, the SEZ is expected to create more than 8 500 jobs and up to 70% of those jobs will go to local residents of Mamelodi and surrounding areas in Pretoria.
The SEZ is expected to create more than 8 500 jobs and up to 70% of those jobs will go to local residents of Mamelodi and surrounding areas in Pretoria
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HAIKOU HIGH-TECH ZONE: CREATING A MASS ENTREPRENEURSHIP AND INNOVATION BASE Haikou High-tech Zone has become an innovative and entrepreneurial landmark in Hainan Province, writes ALIE VAN JAARSVELD, with big plans afoot, including incentives for South African businesses
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n 13 April 2018, General Secretary of the Chinese Communist Party (CCP) Xi Jinping attended the 30th anniversary of the establishment of the special economic zone of Hainan Province, and announced to the world that the central government supports the construction of a pilot free trade zone on Hainan Island. Hainan now has the opportunity to gradually explore and steadily promote the free trade port with its Chinese characteristics. On 1 June 2020, the Central Committee of the Communist Party of China and the State Council issued the “Overall Plan for the Construction of Hainan Free Trade Port”. This will benchmark against international high-level economic and trade rules and build Hainan into a leader and front runner, creating an important opening to the outside world, in the new era of China.
HAIKOU HIGH-TECH ZONE Over the past two years, Haikou Hightech Zone has closely focused on the development needs of three major industries, ten key sectors and 12 key industries in the Free Trade Zone (Port), and has gone to extraordinary lengths to promote various kinds of activities in the hi-tech zone. Furthermore, it embraced the historical and future major opportunities of the national Belt & Road Initiative and the
construction of a Free Trade Zone (Port), while at the same time depending on the advantages of supportive national policies, ecological endowment, special economic zones and international tourist islands. This will create an entrepreneurial and innovative ecological environment which is “livable and suitable for employment” and attract domestic and overseas returners to start new businesses in China. Moreover, it is hoped to introduce technology service platforms with international service capabilities, offshore financial services platforms and other institutions to continuously promote technological innovation and high-quality development of the Zone. As the only state-level high-tech industrial development zone in Hainan, Haikou High-tech Zone has continued to grow, together with Hainan Special Economic Zone, since its establishment in 1991. Over the past 29 years, Haikou High-tech Zone has endeavoured to be the centre of scientific and technological innovation and development, with its focus on the health, low-carbon manufacturing, high-tech and other industries. Now it has become an important driving force in the rapid development of Hainan in the wave of reform and opening up. At present, Haikou High-tech Zone has 20 public technology innovation
service platforms, which are represented by Hainan’s drug innovation service platform and marine industry incubation and innovation platform. Industries on these platforms belong to the “12 Key Industries” in Hainan. In addition, multiple engineering technology centres and key laboratories have become an important gathering cluster for technological innovation and industrial development in Hainan Province. Haikou High-tech Zone has become an innovative and entrepreneurial landmark in Haikou city and even in Hainan Province. In 2017, it was approved as the “National Massive Entrepreneurship and Innovation Demonstration Base” by the State Council. In 2018, it was approved to become the “High-end Talent-leading” Special Carrier for Promoting SMEs’ Innovation and Entrepreneurship Upgrading Project through the joint support of the Chinese Ministry of Finance, Ministry of Science and Technology, and Ministry of Industry and Information Technology.
THE INCUBATION CENTRE After the formation of the Free Trade Zone (Port), Haikou High-tech Zone is working actively to explore the construction of an international offshore innovation and entrepreneurship base. The Haikou National High-tech Zone
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INDUSTRIAL DEVELOPMENT
Entrepreneurship Incubation Centre (referred to as the “Incubation Centre”) is a technology-based small and micro enterprise incubation service platform, established by Haikou High-tech Zone. It has been approved as a national SME public service demonstration platform and a national small- and micro-enterprise entrepreneurship innovation demonstration base. It has cultivated a large number of high-quality enterprises, covering industries such as new energy, new materials, marine technology, biomedicine and artificial intelligence. In fact, the number of registered enterprises in the incubation centre has reached 1419, with a registered capital of ¥11.08-million. As an international offshore innovation and entrepreneurship base, mainly built in Haikou High-tech Zone, the Incubation Centre adheres to the internationalised service route and establishes a globalorientated scientific and technological innovation cooperation system through innovative foreign cooperation mechanisms to help transform and upgrade industrial structure. In 2019, the Incubation Centre established the South African Innovation Cooperation Centre and Singapore-Haikou Hightech Zone International Innovation and Entrepreneurship Centre. It integrated and built an overseas talent pool and cross-
border cooperation service organisation, and organised the China Hainan Station Launching event, inviting ten academics from the South African Academy of Sciences. The roadshow of scientists led to the signing of the project. During 2019, the Forum for Science and Technological Innovation and High-Quality Development of Industrial Parks gathered 350 industrial experts at home and abroad to plan and discuss the development of the Zone in terms of technological innovation and the construction of international offshore innovation and entrepreneurship demonstration zones. The “IPIEC GLOBAL 2019” Swiss special event – together with the “Unicorn” enterprise in the Dawan District – successfully opened a new chapter for the innovation and entrepreneurship cooperation between China and Switzerland.
FUTURE GOALS Haikou High-tech Zone’s future plans involve connecting and channeling global innovation resources, building a highquality international offshore innovation and entrepreneurship demonstration zone, and further expanding the cooperation of countries along the “One Belt & One Road” areas. It will also continue to focus on the health, low-carbon manufacturing, high tech and modern service industries. Furthermore, it plans to further strengthen
the investment attraction of the Zone, as well as provide a vigorous driving force for the high-quality development of Hainan’s, and China’s, economy. Recently, during May 2019, a delegation from Haikou paid a visit to the Progressive Business Forum in South Africa. The established free trade zone creates an excellent opportunity for South African businesses that wish to make use of the incentives provided by the Chinese government. These include the import of various commodities such as wine, meat, minerals and other manufactured goods. It also provides an opportunity to make use of the free trade incentives to use Haikou as a port of entrance for further distribution in the rest of China.
For further detailed information regarding mutual investment and development opportunities, contact ALIE VAN JAARSVELD in Cape Town at South Africa/China Belt and Road Development Agency, Tel: +27794671953, Email: alievanj@gmail.com or Sam Sun Email: gongsi45@Hotmail.com
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SECURING THE FUTURE TODAY THROUGH EMPLOYER PROVIDED BURSARIES DR FRANCOIS LIEBENBERG solving the challenges that companies face to provide value to lower-income employees where it really makes a difference and matters most: education
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ection 10(1)(q) of the Income Tax Act governs the tax treatment of employer provided bursaries for employees and relatives of employees. It has undergone quite a transformation since it was introduced, specifically allowing for salary sacrifice and significantly increasing the monetary thresholds in 2017 to make it more inclusive and accessible. This powerful incentive is gaining momentum in forging a closer relationship between the private sector and educational institutions, decreasing the burden of Government being the main contributor to funding for education in South Africa. Employees are showing great appreciation towards this positive government initiative. Ziyabukwa Ntantala, a 42-year-old employee who currently makes use of the benefit from his employer stated that “I used to struggle paying my children’s transport every month to an extent that my children were left stranded at school for hours due to not paying the transport. As a working class with low income we face a lot of financial difficulties. Since I joined the programme, the tax-relief I receive enables me to pay the school transport regularly. I feel like government heard our suffering and cries as we want to give our kids a good education and we don’t qualify for fees exemption”. Ziyabukwa is unfortunately not alone, “This is and remains a light in a dark tunnel
for many of our employees, especially in the current difficult economic climate”, according to a large employer.
BACKGROUND TO THIS INITIATIVE Various education funding models have seen increased focus from the government over the past few years, with National Treasury issuing various initiatives to support the educational landscape. Quality education continues to be the cornerstone of long-term social-economic upliftment, poverty eradication and skills development, and NSFAS has been an example of a successful mechanism to afford students from low- and middle-income households the opportunity to obtain a tertiary qualification. In addition to NSFAS, funding for tertiary education has been further enhanced at the end of 2019 by the new framework for measuring B-BBEE, which awards points to companies that provide bursaries for black students studying at tertiary educational institutions, aligning it with the NSFAS qualifying criteria. Furthermore, Section 10(1)(q) of the Tax Act is another powerful mechanism whereby companies can provide bursaries to their employees and their relatives. Making budget available for employer provided bursaries does, however, remain a challenge for most companies. To address this issue, National Treasury made changes to section 23(j) of the Tax
Act in 2006 to allow for salary sacrifice structuring for employer provided bursaries. National Treasury noted in the 2006 Explanatory Memorandum on the Revenue Laws Amendment Bill: “Salary sacrifice as a component of the exemption creates unnecessary difficulties in application. While justifiable as a matter of legal theory, this distinction makes little economic sense in light of the skills shortage within South Africa.” This has made the initiative a powerful mechanism to get the private sector more involved in the education funding model for lower- and middle-income citizens and covers a wider spectrum than NSFAS, from Grade R up to NQF level 10 tertiary qualification (PhD). Employer provided bursaries were made tax exempt in the hands of the employee if: • It is granted to an employee for their own studies, the employee agrees to reimburse the employer if that employee fails to complete his or her studies for reasons other than death, ill-health or injury • In the case of a bursary granted to a relative of an employee to study: - if the remuneration of the employee does not exceed R600 000 - the bursary does not exceed R20 000 in respect of grade R to grade 12, or R60 000 in respect of tertiary education.
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TAX
CHALLENGES COMPANIES FACE WHEN IMPLEMENTING THIS SCHEME While this legislation has been positively received, the practicalities of implementation have proven to be a challenge. For a bursary to qualify as being tax exempt, companies have to ensure compliance, covering a wide area of expertise, including: • Compliant bursary policies • A robust mechanism for employees to submit applications • An integrated verification strategy and mechanism to ensure that the schools who receive the funds are registered with the Department of Education and that the beneficiary of the funds is attending the educational institution • Direct payments from the employer to the educational institution to ensure that the scheme achieve its objective, channeling funds from the private sector directly into education. These requirements have been a challenge for companies and the good intentions of both the government and caring employers has historically fallen flat as a result. This highlighted the need for a formal bursary administrator that specialises in providing a cost-effective platform and expertise to administer employer provided bursaries in a compliant way.
THE ROLE OF THE ADMINISTRATOR
CONCLUSION
It has become clear that there was widespread intent from the private sector to become part of the solution to assist in funding education from the grassroots level if the administrative challenges could be overcome, but companies needed assistance with the administration and compliance. SmartFunder, a specialist employer provided bursary administrator, has stepped up to this task by assisting companies who wished to implement this initiative in a compliant way, as intended by the Tax Act. SmartFunder built an online application portal, school verification unit and a bank integrated cost-effective payments distribution mechanism that allows for efficient, transparent and tax compliant administration of bursaries for companies, which has led to a drastic increase in funds being distributed directly to schools. Employers noted that “The SmartFunder system has built-in IRP5 code management tools to ensure that Employer IRP5 submissions accurately reflect taxable and non-taxable bursaries and scholarships, ensuring accurate reporting from employers to SARS”. This solved the challenges that companies were facing to provide value to lower-income employees where it really made a difference and matters most: education.
This amazing government initiative has enabled the private sector to already channel more than R200-million towards education, positively impacting the lives of tens of thousands of employees, learners and students at all levels. SmartFunder, in particular, has helped to distribute funds to more than 4 000 schools and tertiary educational institutions on behalf of employers across South Africa through its transparent, tax compliant and safe platform. This is driving behavioural change, where employees prioritise paying school fees via payroll, improving collection rates at schools and thereby improving education at all levels, particularly in government schools. Given the fact that the only way to utilise this legislation is through properly implemented and controlled schemes at employers who need to use the correct non-taxable IRP5 codes, we trust that employees that make use of this will remain both loyal taxpayers through PAYE, as well as loyal school fee payers. Administrators act as another guardian to ensure that there is no abuse of this legislation and SmartFunder requires employers to make payments directly to the educational institutions. Government has heeded the call for better education for all and Section 10(1)(q) is starting to deliver on a macro and micro level, where government and employees are reaping the benefits of good policy in action.
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ARE YOU GUILTY OF B-BBEE FRONTING? Using black employees for the colour of their skin in order for your business to score B-BBEE points and procure a tender or government contract will land you in seriously hot water, explain MEGAN BROOK, Candidate Attorney, and JUSTIN SLOANE, Partner at Schindlers Attorneys
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B-BBEE
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outh Africa has one of the most unequal societies in the world due to its racially segregated past. The Constitution of the Republic of South Africa, 1996 (The Constitution) places a duty on our lawmakers to put in place measures, legislative and otherwise, to achieve equality. As a result, the BroadBased Black Economic Empowerment Act 53 of 2003 (the Act) was enacted with the aim of remedying the economic and social inequities prevalent in South Africa. Broad-Based Black Economic Empowerment
(B-BBEE) is a policy aimed at assisting in economic inclusivity and is intended to empower black businesses and individuals by forcing state entities to take preference over same when it comes to the granting of jobs and awarding of tenders. B-BBEE compliance, although not compulsory for all South African businesses, has become a prerequisite for government tenders and is vitally important for suppliers to be successful in tender bids. However, in some circumstances black employees are used for the colour of their skin in order for the business to score B-BBEE points and procure a tender or government contract. This is one of the biggest abuses of the Act. Prior to 2014, this was not a statutory offence which could land you in jail. This changed when the Act was amended and made these practices a punishable offence. The B-BBEE Amendment Act 46 of 2013 (the Amendment Act) introduced certain mechanisms, as will be discussed below, in order to strictly monitor these practices.
WHAT IS FRONTING? A “fronting practice” is defined in the Amendment Act as “a transaction, arrangement or other act or conduct that directly or indirectly undermines the achievement of the objectives of the Act or the implementation of any of the provisions of this Act.” The definition provides a list of fronting practices which include, but are not limited to, when “black persons, who are appointed to an enterprise, are discouraged or inhibited from substantially participating in the core activities of that enterprise” and “the conclusion of a legal relationship with a black person for the purpose of that enterprise achieving a certain level of B-BBEE compliance, without granting that black person the economic benefits that would reasonably be expected to be associated with the status or position held by that black person.” In summary, businesses that front pretend to be more compliant with B-BBEE policies than they actually are. This is a form of window-dressing whereby black employees appear as beneficiaries, directors or shareholders but are in fact not. A practical example would be where a company asserts
that a lower-salaried black employee, such as a driver, is a director or holds a senior position in order for the business to appear B-BBEE compliant and secure a tender. Another example would be positioning black employees as executives but with a notably lower salary compared to other executives. Fronting is a common occurrence in South Africa which hampers economic transformation and leads to companies taking away deserved opportunities from those who actually comply with B-BBEE scorecards and embrace transformative ideals.
WHAT ARE THE PENALTIES AND CONSEQUENCES? Criminal liability may ensue if a party is found guilty of fronting and, as per Section 130(3)(a) of the Amendment Act, an individual who knowingly engages in a fronting practice will be liable to a fine and/or imprisonment for a period not exceeding ten years. Companies can face administrative penalties of up to 10% of its annual turnover. A B-BBEE verification professional, who is an individual in charge of rating the status of a company in terms of their B-BBEE compliance, who becomes aware, or attempts to commit, fronting is liable to a fine and/or imprisonment for a period not exceeding 12 months. Section 13P of the Amendment Act prohibits any person that has been convicted of an offence in terms of the Act from doing business with organs of state for up to ten years. Owing to the fact that such contracts are often the main motive for the fronting, this may be the worst form of punishment. Courts are given the discretion to limit this prohibition to only those persons involved in the fronting practice, instead of the whole company concerned, to avoid those individuals from trying to front again, but through another entity, in an attempt to secure government work or tenders. In addition, the B-BBEE Commission has mentioned how a conviction can come with reputational damage as a company or individual can be sued and taken to court for the recovery of a payment made on the back of fronting.
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B-BBEE
Resultantly, fronting fraud is a serious crime which can hamper your access to government work and lead to fines, imprisonment and reputational damage.
WHO CAN BE FOUND GUILTY OF FRONTING? There are essentially two categories of fronting offenders: those who actively front and those who were a part of a fronting scheme and should have reported it. The Amendment Act creates the offence for anyone who “knowingly engages” in fronting, and defines “knowingly” as a person who has actual knowledge of the fronting or who is in a position where he or she ought to have knowledge of it and should have investigated the matter or taken measures which would have exposed the fronting. As a result, the Amendment Act covers those individuals who are negligent in their actions, not just intentional, and one has to take reasonable steps to try and ascertain the actual state of affairs if they are in that position. Ignorance of the facts is not an excuse under the Amendment Act and alleging that you “didn’t know what was going on” will unlikely help you to escape a charge, especially if there were indicators of fronting that you should have been aware of. Bearing the above in mind, it does not matter whether you are black and may have in fact been prejudiced by the fronting scheme; if you negligently participate without taking precautions, you too will face criminal charges together with the main perpetrators who devised the fronting plan. For example, if the black employee appointed to a senior position knows that they do not have the required skill for the position, or if they acquire a certain shareholding yet do not receive the economic benefit allied with same, steps must be taken to report the matter to the B-BBEE Commission. In a scenario like this, the black individual involved may not have deliberately tried to breach the Amendment Act but is still no victim under the law and may face criminal liability.
WHAT IS THE PROCESS OF CONVICTION? The B-BBEE Commission was established in 2016 and has jurisdiction throughout South Africa to oversee the implementation and application of the Amendment Act. The B-BBEE Commission does not have the authority to impose a penalty or other criminal sanctions as this is strictly dealt with through a court of law. It can, however, make a finding as to whether any B-BBEE practice involves fronting. It too has wide investigative powers afforded to it and Section 13K of the Amendment Act affords the Commission the power to issue summons to any person or gain possession of any piece of evidence. After an employee or the general public lay a complaint to the B-BBEE Commission about a potential fronting practice, the Commission will investigate the matter and may then refer it to the National Prosecuting Authority (NPA) for prosecution, to the South African Police Service (SAPS) for criminal investigation or even to the South African Revenue Services (SARS) for examination. A person who appears before the Commission is not obliged to give any information over which is self-incriminating and, if they do, this information will not be admissible before a criminal court. The Commission may publish any finding or recommendation which it has made in respect of any investigation it conducted in such manner as it may deem fit. In February of 2020, Risc Technology Integration (Pty) Ltd (Risc Technology) was issued with a final finding by the Commission in a case alleging fronting and misrepresentation of B-BBEE status. The Commission received a grievance from the companies’ former employee who stated that she was formerly employed as a receptionist but that she left the company after learning that she had been listed as a 33% shareholder, without her approval or knowledge, and without receiving any dividends in respect of her shareholding. After evaluating the complaint, the Commission made a final finding of fronting wherein specific recommendations
When engaging in a fronting practice ... not only can you face jail time or a hefty fine, but also damage to image and reputation were made to Risc Technology. The company then approached the Gauteng Division of the High Court of South Africa (High Court) on an urgent basis to interdict the Commission from implementing its findings and recommendations made in its report. The High Court dismissed the application in March 2020. According to Ms Moipone Kgaboesele, executive manager for investigations and enforcement for the Commission, “the Commission takes every fronting allegation seriously and will not stop pursuing such matters because if true, they undermine the policies and the efforts of government to properly empower black people in this country, and further, it defrauds the tax payers and government because companies that engage in fronting black people and misrepresent their B-BBEE status get benefits that they do not deserve under false pretences.”
CONCLUSION The Amendment Act and B-BBEE policies seeks to change the racial composition of South Africa’s economy in terms of management and ownership structure. B-BBEE fronting is prevalent in South Africa and has the ability to hamper economic transformation and undermine the objectives of the Act. Individuals must be conscious of the risks they face when engaging in a fronting practice as not only can you face jail time or a hefty fine, but also damage to image and reputation which could negatively affect the ability to attract investments or contracts. Those businesses seeking to achieve B-BEE compliance must ensure to comply with the Amendment Act and do so in a manner which does not amount to “fronting”.
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THE DEFINITIVE GUIDES TO GOVERNMENT IN SOUTH AFRICA Yes! Media’s annual Government Handbooks are the most comprehensive guides to government in South Africa. Each publication focuses on a particular layer of government, and together they provide detailed information on more than 800 national and provincial departments, institutions, public entities, state-owned enterprises, and municipalities. The comprehensive directories provide relevant descriptive information, contact details, particulars of senior political and administrative officials, as well as financial and other performance information.
The Handbooks are aimed at government officials, local and foreign representatives of business, as well as investors and NGOs, who need complete, yet concise, reference sources to South African government. Copies are distributed to senior government and municipal officials, government and industry bodies, investment promotion agencies and business chambers. Copies are sold to the private sector via the Yes! Media website. Online versions of previous editions of the print publications can be viewed at www.issuu.com/yesmedia
To advertise in future editions contact: Jan Weiss | Email: jan@yesmedia.co.za | Tel: 021 447 6467 To order copies of current editions visit www.yesmedia.co.za.
Suite 20-301B Waverley Business Park, Kotzee Road, Mowbray, Cape Town Tel | +27 21 447 6467 | info@yesmedia.co.za
PIKITUP FOR A RECYCLING ECONOMY Pikitup is certainly doing its bit to reduce, reuse and recycle. How about you? Here is some information on how you can and what the benefits will be – for you and for the next generation
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hen it comes to recycling, Pikitup is – quite literally – picking it up. With the company’s strategic focus on ensuring waste prevention and minimisation, it is forging new frontiers with a community-driven approach to waste management. And all in line with the National Waste Management Strategy (NWMS), Integrated Waste Management Plan (IWMP), and Growth and Development Strategy: Joburg 2040, outcome 3: Enhanced quality services and sustainable environmental practices. Pikitup’s primary goal is to provide sustainable integrated waste management services to all residential, formal and informal areas, and businesses in the City of Johannesburg. It is also responsible for the provision of services to ensure the overall cleanliness of the City’s streets, open spaces and certain public areas. The cleaning of public sector hostels, public sector housing estates as well as informal trading areas and taxi ranks don’t form part of its responsibilities, but Pikitup does offer these services at a cost. In addition, Pikitup plans to reduce waste going to landfills by introducing waste minimisation projects including the roll-out of the Separation at Source (S@S) programme and alternative technologies such as waste to energy. Another focus area is implementing waste minimisation projects in order to divert waste to landfills, including diversion of dry and green waste as well as builder’s rubble.
THE SEPARATION AT SOURCE (S@S) PROGRAMME The Separation at Source (S@S) implementation plan is mainly derived from Pikitup’s Resource Recovery and Logistics Plan (RR&LP) as well as Waste Minimisation Strategy. The S@S programme was rolled out on a voluntary basis from 2009 in some areas of the City. Based on previous studies (Kwezi V3, 2004) Pikitup should be extracting an average of 13kg of dry recyclables a month per household. However, based on previously reported tonnages from the S@S programme, an average of only 4.5kg of dry recyclables is extracted per month per household in the areas where the S@S programme has been rolled out, which is far below the estimated extraction rates from the KV3 report. It is for this reason that Pikitup introduced a mandatory S@S programme in the areas that are already receiving the service, so as to increase the participation as well as the extraction rate of recyclables in those areas. As of July 2018, residents were requested to separate both dry and green waste at source. It is now mandatory for the residents in the affected areas who are currently receiving the recycling bags to place dry recyclables (paper, plastics, metal and glass) for kerbside collection by Pikitup or its service providers for further processing. The type of bag that residents receive for this purpose is a “clear colour” or a “blue colour” bag depending on the service provider that is delivering the service on behalf of Pikitup.
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SUSTAINABILITY
So far, S@S has been rolled out in the following depots: Zondi, Central camp, Marlboro, Waterval, parts of Avalon (Orange Farm, Lenasia), part of Randburg (Diepsloot) and part of Randburg (Zandspruit), parts of Midrand and Southdale.
THE BENEFITS OF S@S The methodologies used in the implementation of S@S ensures that opportunities are extracted from the waste value chain. Sustainable jobs have been created and new businesses established, which is a direct contribution to the IDP Priority 1 of promoting economic growth and reducing unemployment. The company contribution includes ensuring that a recycling economy is established in the City of Johannesburg where communities and entrepreneurs are enabled to manage and benefit from recycling activities. At the centre of this intervention is the continued support and establishment of various communitybased cooperatives and entrepreneurs, chosen through an open tender process to take responsibility for collecting and managing recycled waste through the separation at source programme. Pikitup has also upgraded several existing garden/drop-off sites into Integrated Waste Management Facilities (IWMF) which include a range of activities. These facilities accommodate all types of waste, i.e. garden waste, recyclables, builder’s rubble, e-waste and others.
THE SUCCESS STORY The success of the S@S programme is heavily reliant on the participation of all residents and businesses and therefore a particular focus on stakeholder engagement and partnerships has been prioritised, making sure that there is a collective effort from all stakeholders. Behaviour change by citizens will impact hugely on the success of the initiatives related to waste minimisation and to improve the quality of services rendered. And so, residents are urged to make use of the S@S service rendered by Pikitup as well as the Integrated Waste Management Facilities allocated around the City. After all, as the old adage goes, “waste not, want not�.
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5 STEPS FOR BUILDING BUSINESS POSITIVITY THROUGH CRISIS PROF THEODORE PETRUS, business coach and speaker on personal and business success, offers wise advice on overcoming negativity when the chips are down
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ovid-19 has no doubt had a significant effect on small- and medium-sized businesses globally, and locally. In South Africa, much of this effect has been negative. We have seen many small businesses facing layoffs, thereby adding to the already high unemployment figures. Many small businesses have also been forced to close, unable to handle the severe drop in sales due to the lockdown regulations. Others have managed to survive, but they have largely experienced a significant loss of income, making continued operations and trading virtually impossible. But these are external challenges that will pass, eventually. Of greater concern are the three hidden challenges facing every SME business owner: fear, demotivation and negativity. While these are understandable natural reactions to the pandemic, as business owners, we need to find ways to move forward, to adapt, to overcome our challenges and to take full advantage of the new opportunities that the pandemic has created. Unfortunately, many business owners are left feeling stuck in a negative mindset. The danger of this is that it keeps us demotivated, and unable to identify solutions and opportunities. If you find yourself in this position, here are five steps to help you overcome these challenges and build your business positivity, despite the obstacles:
STEP 1: RE-ASSESS AND CLARIFY YOUR BUSINESS VISION AND DIRECTION Having a vision for your business is critical as this represents your end goal.
It is also a powerful motivator that keeps you focused on what you are working for. The pandemic may have slowed down your progress, but it also presents you with an opportunity to re-assess, re-clarify and re-ignite your passion, vision and direction for your business. Ask yourself: Why am I in this business? Are the reasons I started my business still clear enough? Are they still big enough? Your why, your reasons must be bigger than anything else. As long as they are bigger, no obstacle or challenge will be able to completely stop you from achieving your goals. Remember why you started. Remember the dream. Remember the legacy you want to leave. Remember the sacrifices you have made. Remember why it will all be worth it.
STEP 2: UPGRADE RELEVANT SKILLS One thing that can significantly impact your confidence as a business owner is whether you have the right skills. To successfully and positively adapt to the Covid and post-Covid world, re-assess your skills and determine their relevance for the new context. Focus on the following key questions: • Are my skills still relevant? • If not, what skills do I either need to develop or acquire to become relevant? • How do I get those skills? As a business owner/entrepreneur, there is great value in constantly improving yourself through learning and personal development. This doesn’t always need to be in the form of formal training, it could be as simple as working with a personal coach or mentor to help identify skills gaps and/or provide guidance on how best to address those gaps.
Also, the market rewards skills. The more you upgrade your skills and knowledge in your industry, the greater your competitive edge.
STEP 3: OPTIMISE YOUR ENVIRONMENT FOR PRODUCTIVITY Your environment is probably the most critical factor to consider. One of the major challenges of the lockdown has been the adjustment to working from home. Many business owners who are used to working in an office, or on-site, suddenly find themselves having to deal with the challenges and distractions that working from home brings. Finding ways to adapt your environment to work for you rather than against you is critical for building your business with positivity. Ask yourself what you can either add or remove from your environment to make it more conducive to productivity. It is also critical to understand that your environment is multidimensional. There are at least three dimensions to consider: your physical, social (people) and mental environment. All three of these are linked by the question: What do you choose to populate your environment with? Do you surround yourself with positive, motivational and constructive things, or with the opposite? How many of us obsessively watch the news channels, daily, exposing ourselves to the constant fearmongering and negativity generated in the media? This is what informs your environment. How can you empower yourself for positivity by changing habits or daily activities that stifle positivity and productivity?
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BUSINESS COACHING
STEP 4: MASTER YOUR MIND AND EMOTIONS In this step, we focus exclusively on your mindset and emotional state, referred to in the previous step as your mental environment. In the coaching world, we call this the “inner game”. While we have very little control over external events and circumstances, we do have complete control over our inner mindset and emotions. Your inner game is your levels of selfmotivation, positivity and mental discipline to overcome challenges and obstacles. It refers to your ability to be proactive, and to apply problem-solving to dealing with your challenges. It also refers to your mental and emotional resilience when facing adversity. What can you do to build your mental resilience and strengthen your inner game? What mental disciplines can you learn and apply consistently to strengthen your mind and emotions, thereby making you
more resilient and better able to deal with obstacles and challenges?
STEP 5: STRATEGISE YOUR ACTIONS Finally, bring all of these steps together into an actionable strategic plan that works for you. By strategising your actions in this way, you will have the confidence to boldly and positively face your challenges and have the tools and strategies to overcome them. To conclude, Tony Robbins says, “The greatest power you have is the power to make a decision.” You have the power to decide whether or not to (re)build your business with a positive mindset. You have the power to decide whether to give up, to give in to negativity and demotivation and to let fear stop you from achieving your dream. If you make the decision to not give in, these five steps will surely help fortify you. You can handle it!
PROF THEODORE PETRUS Questions? theo@tsplifeskills.co.za
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WORKING WITH STRESS, NOT AGAINST IT Burnout is a common ailment at this time of year – more so this year, with the added stress of the Covid crisis. WERNER GAIGHER, a mindfulness facilitator and health care team member at the Paardevlei Therapy Center, educates us on the stress response and how to turn it off when it threatens to overwhelm us
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hronic stress in the workplace is a very real threat to productivity today. And, although a shoulder massage while sitting at your desk is most certainly pleasant, most companies fall way short of addressing the problem effectively. To date, employers’ go-to strategy to reduce this stress is to offer wellness programmes to staff members. But as good as the intentions on the part of management are, the strategy doesn’t work. The reason for this is the one-sizefits-all model the programmes are run on. Workers, like everyone else, are individuals – each with their own set of strengths and weaknesses.
UNPACKING THE “STRESS RESPONSE” The problem runs deeper than the models themselves, however. At its root is a misunderstanding of what stress really is. Despite what the programmes teach using terms such as “stress management” and “creating a stress-free environment”, stress is not a through-and-through bad thing. In fact, if you’re a totally stress-free animal in the wild, you might pay for it with your life. It works like this: when an animal senses a real and present danger, its adrenal glands increase the production of adrenalin
and cortisol; blood is redirected from the internal organs to the muscles; the heart rate increases and its pupils dilate. All of this is designed to give the animal a burst of energy and heighten its senses to survive the threat, more often than not a prey either stalking it or in hot pursuit. It’s called the “stress response” and it’s a lifesaver. But the office is not a plain in the Serengeti. It’s vastly different. Beyond having water coolers instead of drinking holes, and air-conditioning instead of tree shade, places of work are most probably around 95% safer than the wild. The actual threats to one’s life in an office are close to zero because, yes, no one has ever died of missing a deadline or being shouted at by their boss. Yet, in offices around the world, people are sitting at their desks experiencing the same sensations a zebra has in the Serengeti being chased by a lion. Even worse, where the zebra returns to a state of relative peace when the lion is outrun, office workers remain chronically stressed even though a threat such as losing one’s job can be negated simply by doing good work. Why is this? The reason is that humans have the same primitive brain and ancient autonomic nervous system as most mammals in the
wild. Unlike animals, however, we have for some reason attained the ability to reason, plan, negotiate and contemplate about the past and future. Ironically, it is exactly this thinking part of our brains – this constant contemplation – that keeps us in a chronic state of stress. We can’t seem to turn it off. Yes, my job is secure if I work hard, we think, but what if something beyond my control happens and I’m out on the street? What if a meteor strikes and the whole world comes to an end? What then?!
WORKING WITH STRESS Us humans have lost the voluntary ability to shake off the feeling that there is always a threat and something bad is about to happen. This has huge implications for our health, relationships and our overall
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functionality and productivity. The trick is to complete these cycles of stress instead of being trapped within them and keeping that energy stuck within our bodies. Working with stress – reducing it – and the ability to return our bodies to a more balanced, calm and soothing state, requires us to understand how our bodies respond to the perception of safety and danger, and to be willing to understand these states and change our relationship towards them. Before we start to do anything about our situation, we first need to understand that our body is responding to protect us – and it’s doing so without our permission. The stress response is an involuntary reaction by the nervous system. It is called “neuroception” – and it happens before, and completely independently, from perception. Unfortunately, our nervous
system struggles to differentiate between a life threat, like a lion chasing us, and a deadline which holds no threat to our health whatsoever. For the nervous system it is all the same. So, when our bodies respond to a deadline as if it’s a lion, our mind tells us that we should be afraid. We literally think ourselves into danger. The solution is to start befriending these various body sensations. This requires awareness of the here and now, and a turning towards these sensations with a gentle, agenda-less, curious attitude. Remember these sensations are trying to protect you. Once we become familiar with our various individual responses and sensations, we can voluntarily modulate our nervous system through tools such as breathing, movement, sound, and social support to name a few,
to move our nervous system towards more reflexivity. We need stress, but we also need the tools to switch stress off when it is not relevant.
WERNER GAIGHER Questions? wernergaigher@gmail.com
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WORK AND PLAY IN THE MIDLANDS Come full circle at the classy Majuba Lodge, from doing business in its up-market, well-equipped conferencing venues to winding down in its tasteful chalets and living it up in its popular venue for social events, the Waenhuis Lapa
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ith its named derived from the isiZulu word that means ‘hill of many doves’, Majuba Lodge is a renowned getaway right in the heart of the picturesque town of Newcastle in KwaZulu-Natal. Varnished teak railway sleepers can be found throughout this splendid guesthouse, shaping everything from the counter in reception to the footrests in its stunning rooms. The dark wood creates a homely feel which, together with exceptional service, makes for a restful oasis to wind down in after a hard day’s work.
Circles of chalets A unique feature of Majuba Lodge is its 40 chalets arranged in two circles – one of which has a crystal clear and inviting swimming pool surrounded by lush grass, which is ideal to find relief from some of that famous KwaZulu-Natal humidity. Each chalet has its own under cover parking, the double-room suites made up of a main bedroom furnished with two double beds and an additional with two single beds. The rooms are spacious, each with a comfortable lounge and come with DSTV, air-conditioning, a fridge, a microwave, en-suite bathrooms that offer a bath and a shower. The lodge has a same-day laundry service and copying, printing and faxing facilities are available at the reception desk.
Braai or dine
Conferencing
You can arrange with management to braai outside your room or, if you’d rather let someone else do the work, head over to the Pint & Pigout Restaurant and Pub for an à la carte dining experience. The restaurant has a veranda where guests can eat outside and a lively pub with TVs for the sports fanatics to follow the rugby/soccer on. At Majubla Lodge, the warm and friendly Topiary Room is where breakfast is served; the lodge offering a delicious full English breakfast and a self-serve continental buffet.
For business-minded guests mixing work and play, there are four up-market conference venues. Impangela Hall can seat 80 delegates comfortably and is decorated with carpeted walls and beautiful lighting. The new Garden Hall has an indoor garden feel, with side walling that can be opened or closed. The venue can seat up to 300 people and comes equipped with a projector and a big screen.
Entertainment Waenhuis Lapa is the lodge’s premier spot for socialising. Set in a beautiful and lush garden, the lapa is a very popular venue for parties, weddings, spitbraais and more. It boasts a fully licensed cash bar and can seat 60 guests comfortably, with enough space left for the avid dancers. Chandeliers and a thatched roof top off what is a must-have experience at the lodge. There is also the Majuba Hall which can seat 150 guests comfortably, featuring a fully licensed cash bar. They also offer a fully functional hall for all private functions which seats 25 delegates comfortably, with access to a private bar called the Porthole.
Whether you’re visiting to get some work down or to wind down – or both! – the Majuba Lodge will not disappoint. From the koi pond outside reception to the tranquil fish tank inside, the overall theme here is to take it easy.
Tel +27 (0) 34 315-5011
Cell +27 (0) 82 888 0544 / +27 (0) 82 888 1340
Conferencing enquiries@majubalodge.net
Accommodation reservations@majubalodge.net
Website www.majubalodge.net
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BOOK REVIEW
MANAGING THE COVID STORM WILHELM CROUS brings us a timely and comprehensive guide to help leaders navigate their organisation through the choppy waters of the Covid climate
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hile forming the United Nations after the second world war, Winston Churchill famously said that one should, “Never let a good crisis go to waste.” Well, with that attitude Mr Churchill would no doubt have marvelled at the lessons to be learned from the current Covid crisis. It is an undisputed fact that the current Covid-19 pandemic is an unprecedented crisis – an event only ever likely to come along once every century. The challenges facing humanity are monumental as the crisis effects each and every sector of society, from schools through sports through to the way we shop. In the world of business, the disruption is equally severe and, like elsewhere, can lead to a sense of chaos and impending doom. Employees look to their leaders to show the way and steady the ship – a mammoth task under the current circumstances which require trusted, bold and courageous actions to navigate the storm. Managing Organisations During the COVID-19 Vortex is therefore both extremely timely, and extremely helpful. A comprehensive guide, the book helps leaders navigate their organisation through the Coronavirus crisis.
From managing day-to-day practicalities, to scenario planning and sense-making, it offers guidelines from over 20 leading experts to help executives deal with their most pressing challenges. Their insights and advice are essential reading for any business leader who is grappling with how to deal with the complexity, uncertainty and unpredictability of this vortex. Seventeen well-structured chapters cover pertinent subjects such as promoting mental wellness in the workplace, retaining resilience in chaotic conditions, navigating lockdowns with certainty and the legal implications of Covid-19 for employers. The pages include a case study on Tencent Africa’s response to the coronavirus crisis as well as a foreword by Professor Shirley Zinn, ex-HR Director of Woolworths and Standard Bank. The experts offering their know-how include Navlika Ratangee, clinical operations director, ICAS SA; Tim Cohen, editor of Business Maverick, a division of Daily Maverick; Toby Shapshak, editor-in-chief and publisher of Stuff magazine; Sonja Blignaut, founder of More Beyond; and many others.
Managing Organisations During the COVID-19 Vortex has been edited by Wilhelm Crous – a wordsmith with an undying passion for business knowledge. Crous has received numerous awards, including the Lifetime Achievement Award from the SABPP for his outstanding contribution to the human resources management profession, and the Chancellor’s Medal from the University of Pretoria for contributions made to human resources management. In 2017, he received a Lifetime Achievement Award from the University of Johannesburg for his contribution to Entrepreneurship in South Africa.
ORDER INFORMATION Managing Organisations During the COVID-19 Vortex can be ordered from Knowledge Resources Ground Floor, Yellowwood House, Ballywoods Office Park 33 Ballyclare Drive, Bryanston Contact: tel: (+27 11) 706 6009 fax: (+27 11) 706 1127 e-mail: orders@knowres.co.za Available online at: www.kr.co.za
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