Opportunity Issue 88 - Sept-Oct 2018

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Exploring business prospects in southern Africa 

Turning 

point 

Economy headed 

in the right 

direction 

Innovation, 

revolution 

Industry 4.0 and 

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ORGANISED BY 

SOUTH AFRICAN CHAMBER 

OF COMMERCE & INDUSTRY

CONTENTS 

4 What the fourth industrial revolution means for 

SA business 

8 Seeking the turning point 

SA has taken decisive steps to rebuild confidence 

12 Irrigate the future 

To create jobs and stimulate growth, invest in water 

16 Construction slows down 

Construction industry under pressure 

18 Mixed bag for mining 

The 2018 financial year had its ups and downs 

22 Networking with Nigeria 

Trade mission meets with success 

23 The voice of business in Zululand 

ZCCI leads the way in 2018 

24 Lowering barriers to entry 

Can the Luxembourg Protocol reshape the African rail 

industry? 

26 Sourcing artisanal skills 

How a Temporary Employment Service can bridge the 

gap 

30 Maximising African agency 

Understanding the complex ties between African 

countries and China 

34 Configuring individualisation 

Reducing customisations for greater manufacturing 

efficiency 

38 Embracing true value 

Mastering diversity strategies that work 

40 Funding secured 

R200 billion investment for KZN economy

FOREWORD 

What the fourth 

industrial revolution 

means for SA business 

Alan Mukoki,SACCI CEO 

As we draw close to the end of 

another year, SACCI is reviewing 

developments that took place 

during 2018, and that have had a 

bearing on business going into 2019. 

SACCI will be hosting its 2018 annual 

convention on 8 November at the Hilton 

Hotel in Sandton. The topic and theme for 

discussion is “Innovation and the Fourth 

Industrial Revolution”. 

The fourth industrial revolution has 

underpinned most global debates this 

year, from the WEF Davos meeting, 

through to the 2018 BRICS meeting 

(held in Johannesburg in July). It will 

most likely also feed into the major 

themes of discussions at the G20 and 

WEF in 2019. 

In October, we saw the conclusion 

of the presidential Jobs Summit, the 

announcement of a stimulus package 

by government to alleviate poverty, 

inequality and unemployment, and the 

Investment Summit. 

Social partner discourse throughout 

this year has revolved around jobs and 

investment summits’ preparations and 

outcomes. Business has come to the 

table with some new, innovative collaborations 

in an effort to increase job 

creation and employment – through the 

KYB Incubator early childhood development 

projects, the employment wage 

incentive remaining in place, and the 

youth employment service initiative. 

Labour has pushed for the same results 

but indicated that it is against the 

digitalisation of jobs in the name of economic 

growth. Fair enough, but there’s 

more debate that needs to take place on 

how South Africa moves with the times 

in an age of social media prevalence and 

digital disruption, while still holding 

onto traditional labour and capital production 

functions. 

Government has had its own battles 

trying to establish a renewed public 

sector and re-build trust in the system, 

while trying to innovate and remain 

relevant. The 2017 Zuma and Gupta 

debacle around state capture is only 

becoming fully known now through 

the Zondo Commission, and various 

other commissions of inquiry into 

institutions such as SARS. President 

Ramaphosa announced a succinct stimulus 

package promising a lot. As was 

commented on by SACCI at the time, 

there is still a lot of detail missing on 

how exactly the stimulus package will 

be financed and distributed to truly 

spur economic growth and address 

the country’s many challenges. We 

wait and see what Minister Mboweni’s 

first medium-term budget and budget 

speech deliver in this regard. We also 

anticipate possible findings from the 

commissions of inquiry around the 

repatriation of looted assets, a reform 

of state-owned entities, and possible 

follow up on the finding’s or former 

President Mbeki’s high-level panel on 

illicit financial flows. 

What is clear is that the gaps are 

big. The needs are big. But what concrete 

proposals and implementation 

strategies will be used to actually 

achieve outcomes for the benefit of all? 

Innovation and technologies, leap-frogging 

as most call it, is key to overcoming 

such challenges as climate change. But 

will South Africa be able to traverse this 

path without conflict? We have seen 

4 | www.opportunityonline.co.za

how the introduction of Uber and Taxify have caused 

much consternation and unrest within our public 

transport sector. While there has been no backlash 

yet, the digital disruption to things like medical aid 

and e-learning are also likely to create bigger divides 

within health and education sectors, between private 

and public funded initiatives. Business and government 

must work together to find a cohesive solution. 

These are big issues when one thinks that these 

sectors receive the lion’s share of public funding 

and government is moving towards the national 

health insurance policy. Is it perhaps time to rethink 

public-private partnerships? Is it time to recapacitate 

institutions such as NEDLAC for more robust social 

dialogue? Or do we simply need to make space for 

activism by civil society and the media? 

One thing is certain; South Africa should proceed 

with caution. Yes, digitisation can bring great leaps 

in development and innovative solutions to social 

problems. One cannot digitise integrity though. Case 

studies from several countries show that while the 

introduction of integrated financial management 

information systems has streamlined government 

accounting, it has also provided the corrupt with an 

easier way to loot the system. This can be said for any 

procurement or tender process that involves entries 

into a non-transparent and closed digital system. So 

what to do? We can no longer rely on the values of an 

office holder not to pervert the system. 

Well for one, it is important that there are checks 

and balances, both within the digital system, and in 

the bodies responsible for monitoring these systems. 

Information should be available to the public and be 

transparent. No one should be free from scrutiny. 

Also, constant vigilance is required, with regular 

reviews and reforms to the systems and regulations 

in order to continually close loopholes. Think of it as 

one would think of the tax system. Tax evaders exist 

no matter how strong the system is. But the job of 

authorities is to be ever vigilant and reduce the opportunity 

for evasion or creative accounting. The same 

goes for the broader economy as it moves to more and 

more technology-driven means of exchange. 

As the year closes, SACCI is optimistic in the ability 

of social partners to work together on these issues. We 

can overcome the shock and horror of state capture 

under president Zuma. And we can work together 

to avoid such a situation ever occurring again. By 

implementing the right monitoring and evaluation 

processes and the rebuilding of strong anti-corruption 

agencies, strong institutions and re-establishing the 

rule of law, the future for South Africa and doing business 

in South Africa remains hopeful. 

Wishing all readers the best for closure of 2018, 

and prosperity for 2019. 

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ED’S NOTE 

Turning the ship around 

" 

The investment strike is over". If the thunderous applause that greeted 

this announcement by President Cyril Ramaphosa at the Investment 

Conference is anything to go by, the long and eagerly anticipated moment 

of economic turnaround may have arrived. At least, that was the feeling in the room. as 

the President was rewarded with pledges to the tune of R290bn into the South African 

economy, reflecting increased confidence in his administration. 

Greg Penfold 

greg@capemedia.co.za 

With Ramaphosa at the helm, it seems that the good ship SA Inc may finally be 

turning around. However, the storms that have lashed the vessel are far from over, 

and the direction in which it is navigating is not completely clear. There are the 

dangerous reefs labelled Recession and Expropriation that have to be passed, the 

sun is obscured by the clouds of Weak Growth and Deficit, and the sharks of State 

Capture are still trailing the vessel. Let us hope it can build up enough steam to 

shake them off! 

Of course, the business community has little choice but to trust that the ship 

will reach safe harbour. Indeed, for those who believe in South Africa, the future 

is bright, albeit not immediately. As Grant Giburt, portfolio manager at Nedbank 

Private Wealth. commented at the time of the Investment Conference,“The market 

is concerned that we could see a possible downgrade from Moody’s but this might 

present a buying opportunity for long-term investors who can stomach the risk and 

believe that the economy has a chance of a strong recovery,” 

Those who stay the course and help rebuild the country's economy will certainly 

reap the rewards. 


ECONOMY 

Seeking the 

turning point 

SA has taken decisive steps to rebuild confidence 

Investors have had disappointing 

returns from domestic equities this 

year after a promising start. South 

Afrca is now in a recession and the global 

backdrop is no longer as supportive, so 

President Ramaphosa will have his work 

cut out to instil a new sense of confidence 

to ignite growth. His stimulus package and 

a revised mining charter are good signs, 

but scepticism dominates markets. Hope 

alone is not—implementation is required. 

Where might be the turning point? 

After a strong start to the year, equity 

returns on the JSE are negative for 

the year so far and one, three and five 

year returns are well below historical 

averages. Ramaphoria has gone. The 

economy is in recession and unemployment 

is rising. The external environment 

has also deteriorated, not only as a 

result of trade tensions, but idiosyncratic 

events in Turkey, Brazil and Argentina 

have spooked emerging market investors 

and resulted in large scale outflows. 

A stronger US dollar, reduced US dollar 

liquidity and a higher oil price have added 

to the pressure for emerging markets. 

Since Ramaphosa’s inauguration, he has 

taken decisive steps to rebuild confidence. 

The focus has been on dealing with corruption 

in government and state capture, 

restoring good governance at state-owned 

enterprises and strengthening critical 

public institutions. The various enquiries 

such as the state capture enquiry and 

the SARS commission have revealed the 

extent of corruption and deliberate incompetence. 

State-owned enterprises remain 

fragile given the state of their balance 

sheets and lack of capacity to maintain 

and deliver services and infrastructure. 

Significant change is required. 

After a period of consultation, including 

with the private sector, Ramaphosa 

announced a recovery and stimulus 

package. This was shortly followed by 

the release of a more pragmatic and 

business-friendly mining charter. The 

announcements were well received, but 

many will stay sceptical because too many 

of the goals and announcements are not 

new: we’ve heard them from the ANC 

before with no result. Yet Ramaphosa has 

differentiated himself from his predecessor 

by being hands on and pragmatically 

results-orientated. The next markers are 

the Jobs Summit and the Medium Term 

Budget Policy Statement. Meantime, the 

rand and bond markets have recovered 

from lows. Equities continue to struggle 

given low visibility of recovery and the 

very present reminders of recession. 

Economic recovery and stimulus 

package 

• The package has four broad aims: 

• Implementation of growth-enhancing 

economic reforms 


ECONOMY 

• Reprioritisation of public spending to 

support job creation 

• Establishing an infrastructure fund 

• Addressing urgent and pressing matters 

in health and education. 

None of these objectives are new. 

They were part of the National 

Development Plan (NDP) that was so 

comprehensively ignored by the Zuma 

administration. Supposedly incorporated 

in government’s medium-term 

expenditure plans, nothing much was 

implemented. Ramaphosa has elected 

to keep to the sound long term plans 

of achieving the necessary structural 

reforms and sustainable growth plans 

recommended by the National Planning 

Commission, instead of reinventing 

the wheel. 

In his speech, Ramaphosa provided a 

sober synopsis of the challenges facing 

the economy. The plan singled out infrastructure 

spending as a critical driver 

of economic activity and employment 

growth, with the aim of reprioritising 

fiscal spending towards activities that 

have the greatest impact on economic 

growth and job creation rather than 

increasing overall spending. Much as 

this is reshuffling of budget items, SA 

cannot afford any fiscal slippage. There 

will be more detail in the Medium Term 

Budget Policy Statement at the end of 

October. For now, the numbers are in 

one sense not as important as the message. 

An additional R50 billion to be 

allocated to infrastructure is in the context 

of annual government expenditure 

of over R1.7 trillion (33% of GDP). The 

key is the signal regarding focus and 

implementation within the constraints 

of what is possible. The goals are not so 

high as to be unattainable, and instead 

of overpromising we can expect a focus 

on delivered outcomes. 

Because implementation has historically 

failed, an infrastructure execution 

team has been established in the presidency: 

“The team will identify and 

quantify ‘shovel-ready’ public sector 

projects‚ such as roads and dams‚ and 

engage the private sector to manage 

delivery”. This illustrates government’s 

change in tone towards private sector 

inclusion. 

• A number of other initiatives were 

announced to enhance growth, 

including: 

• Changes to SA’s visa regime to support 

tourism and business travel 

• The revised Mining Charter, which 

isn’t perfect, but which should 

restore some confidence 

• A crackdown on illegal imports to 

protect sensitive sectors 

• Support for agricultural development 

including better leasehold terms for 

new farmers which should unlock 

financing. 

Mining Charter 

The revised Mining Charter is an 

additional step. Until now, a lack of 

regulatory certainty has been a major 

obstacle to investment in the sector. 

Removing this uncertainty has been a 

top priority for President Ramaphosa’s 

government. The gazetted charter provides 

more certainty on a number of 

aspects, such as the “once-empowered, 

always-empowered” principle. Without 

going through all the detail it is clear that 

the new mining charter has addressed 

many of the concerns raised by Minerals 

Council South Africa when the previous 

draft was released in July, and an illustration 

of government’s willingness 

and commitment to finding a credible 

solution while redressing historic socioeconomic 

inequalities and ensuring 

broad-based economic empowerment. 

The gazetted charter is more pragmatic 

and investor friendly than was previously 

feared, and provides a framework 

for business to plan and make informed 

investment decisions. 

Conclusion 

Under the new president, politics has 

not settled and uncertainty regarding 

Ramaphosa’s ability to implement 

policy change is high. Yet a considerable 

number of changes have been 

made, both to strengthen governance 

and to remove obstacles to business 

and investment. Within the current 

constraints of government finance, 

limitations on what can be done are 

substantial. None of the changes individually 

will make much difference, 

but collectively represent a significant 

change of direction. Implementation 

will remain a key issue and so a considerable 

amount of scepticism is 

warranted. But with Treasury more 

clearly back in the driving seat, a shift 

in spending priorities and hopefully 

outcomes can be expected. 

SA is stuck in a low-confidence cycle 

and a recession, which complicate the 

outlook; but it has all the required 

basics to enable a cyclical recovery, 

even without lower interest rates. 

While most investors are watching for 

a “trigger event” that will launch a confidence 

revival, and then an economic 

recovery, the way things are going it 

is much more likely that there won’t 

be a specific trigger—it will happen by 

stealth. At some point an accumulation 

of factors will have combined to lift 

things and we’ll be out of recession. 

But don’t overexpect. As far as portfolios 

are concerned, we prefer to adapt 

rather than to take aggressive positions 

based on hope. We have balanced 

portfolios so that when we find we are 

out of recession, we will be ready for it, 

even if we have not anticipated all of 

the nuances. 

Bernard Drotschie, Deputy Chief 

Investment Officer, Standard Bank 

www.opportunityonline.co.za | 9

Building bridges 

between communities 

King Cetshwayo District Municipality 

is making great strides forward 

PROFILE 

as uThungulu) covers an area of 8000 square kilometers, 

from the agricultural town of Gingindlovu in the south, to the 

Umfolozi River in the north and inland to the mountainous 

beauty of rural Nkandla. This paradoxical district comprises 

the best and worst of the two economies of this country. 

“We are home to several of the largest industrial giants in 

the world, the retail sector in our urban areas is burgeoning 

with economic activity, the agricultural and tourism potential 

is boundless and there are ever-increasing opportunities for 

local economic development,” says Mkhulisi. 

“On the other hand, crippling droughts and deep rural 

communities living in abject poverty are also strong characteristics 

of the King Cetshwayo district, with a backlog 

of water and sanitation service delivery topping our list of 

priorities. 

“The challenge is to provide basic services such as water 

and sanitation to these people while stimulating local economic 

development, job creation and the growth of the small 

and medium business sector. The need to address poverty is 

one of the most critical issues. The municipality enjoys good 

relations with the business sector and non-governmental 

organizations.” 

Development and service delivery are at the top of 

King Cetshwayo District Mayor Nonhle Mkhulisi’s 

list of priorities. Committed to improving the socioeconomic 

conditions of the people of the district, Mkhulisi has 

presided over a number of impressive strides forward since 

her inauguration in 2017. An early measure of success was 

the smooth incorporation of Ntambanana Municipality into 

the municipalities of uMhlathuze, Mthonjaneni and uMfolozi, 

a process that was closely managed by the district-run Change 

Management Committee. However, much more work is to come. 

A category C municipality located in north-eastern KwaZulu- 

Natal, King Cetshwayo District Municipality (formerly known 

Surmounting service delivery 

Faced with an extended period of drought, communities 

are struggling to survive on water tanker deliveries and 

water shortages in many rural areas. However, Mkhulisi 

is undaunted. 

“We have worked tirelessly to introduce the interventions 

which we put in place to ensure the supply of water to the 

communities who depend on us for service delivery. These 

include the drilling of boreholes, spring protection in areas 

where natural springs exist, linking of weirs and small dams 

to larger reservoirs to supply small towns, and de-sludging 

of dams.” 

The district is further characterized by large infrastructure 

backlogs, especially water and sanitation, mainly in the 

rural areas. It’s a titanic struggle to overcome, but Mkhulisi 

focuses on the positive: 

“We have achieved phenomenal success in the eradication 

of our backlogs in the past 10 years. Our water backlogs 

have decreased from 81% to 26.1% between 2001 and now. 


We have connected 87,102 households with water between 

2001 – 2018. Over 107197 households have been provided 

with sanitation facilities from 2001-2017. Finally, at uMfolozi, 

Mthonjaneni, Nkandla and Ntambanana, KCDM is planning 

and implementing infills.” 

Radical economic transformation 

Fast-tracking inclusive economic development is an important 

focus area for the District. Currently the accent is on 

agriculture, with the King Cetshwayo Fresh Produce Market 

(KCFPM) at Ngwelezane, Empangeni, being selected as a 

pilot for programme for Radical Agrarian Socio-Economic 

Transformation Model (RASET). 

“RASET will ensure meaningful participation of PDIs in 

the food value chain,” says Mkhulisi. “The criterion used was 

the strategic location to eThekwini and King Cetshwayo and 

agriculture potential to complement the two districts.” 

Farmers on communal land are helped in a number of ways. 

“The farmers are supplied with seeds to plant in their 

communal land as well as garden tools for use during the 

planting stage. Follow ups are made in monitoring the status 

of the produce until it is ready for purchase by KCFPM in 

supporting the Nutritional Programme for the Department 

of Education within the district. Different trainings are 

conducted in educating the farmers with different skills 

pertaining to the plantation of different crops seasonally. 

Farmers are also trained on the value chain so that they 

become aware of business opportunities related to agricultural 

produce,” explains Mkhulisi. 

In addition to RASET, the Department of Planning and 

Economic Development has undertaken to implement various 

agricultural support projects and programmes within 

the District in the 2018/2019 financial year in order to support 

farmers and increase participation in the agricultural 

sector. 

“Agriculture remains a critical vehicle for economic growth, 

job creation and food security as envisaged in the National 

Development Plan and the District Growth and Development 

Plan,” says Mkhulisi. “It is important to continually provide 

information to the farmers within the district to be able to 

tap into the changing environment in order to continue being 

productive in the land.” 

A flagship district agricultural initiative is the revival of the 

Amakha Essential Oils Project in Mfolozi Local Municipality, 

intended to create a Rose Geranium production value chain. 

“Amakha intends to produce and process organic Rose 

Geranium essential oils on site and sell them to buyers for 

international market consumption while adding further 

value to the oils for cosmetic and aromatherapy products for 

various consumers in the cosmetic, aromatherapy and detergents 

value chain. The use of essential oils is not limited to 

room refreshing, repellant, massage, bath skin care, general 

body care, and so on,” Mkhulisi elaborates. 

Initially 50 hectares will be established, ultimately 

expanding to 80 hectares. Primary herb production and 

oil extraction distillation will take place on site. Promoting 

the commercial productivity of the farm will contribute 

immensely towards the local economy and life improvement 

of company members, staff, and the surrounding community. 

Amakha aims to create 60 permanent jobs and 50 casual 

jobs and thus 110 jobs will be created by the enterprise at 

this 50ha start-up phase. 

Mkhulisi lists the factors contributing to the sustainability 

of the project: “The project will be sustainable because the 

beneficiaries have shown interest and have experience in the 

agribusiness, their former commodities and their essential 

oils journey. Essential oils is a priority sector in the country’s 

developments initiatives as it was previously white dominated. 

The climate conditions where the project is situated 

are good. Essential oils are resilient to various climatic conditions. 

Oils will be sold directly to the international buyer, 

Scatters Oils. The EDTEA has funded the project with R2.8 

million and there are other potential funders. Moreover, 

enough land is available in the district to expand essential 

oil production to other local municipalities.” 

Enabling small business 

Provincial Government has identified maritime as a priority 

economic sectors. In line with this, the District has 

adopted the Maritime Strategy developed by the Department 

of Economic Development, Tourism and Environmental 

affairs (EDTEA), and is implementing a Maritime Incubation 

Programme in collaboration with the Kwa Zulu Natal Sharks 

Board Maritime Centre of Excellence and the EDTEA. 

“This structured incubation programme will entail business 

training, mentorship, guidance and business support, 

which will result in the establishment of ten new maritime 

enterprises,” says Mkhulisi. “The target is previously disadvantaged 

women, youth and disabled individuals from all 

municipalities within King Cetshwayo District.” 

Twelve qualifying candidates entered the pre-incubation 

training phase which ran from 26 March to 8 June 2018. 

They now have 11 prospective maritime ventures and have 

considered forming a consortium of 100% black-owned ventures 

from King Cetshwayo District Municipality. 

The different maritime intervention areas that they have 

ventured into include a floating restaurant, stevedoring, 

the Naval Island Annual Jazz Festival, aquaculture, coastal 

marine waste management, ship agent, customer clearing 

and forwarding, warehouse and cold storage, maritime 

construction and maintenance, maritime tour operating and 

ship chandlering. 

PROFILE 


WATER 

Irrigate the future 

To create jobs and stimulate growth, invest in water 

The 4th Annual Water Stewardship 

Conference showcased examples 

demonstrating that investing in 

South Africa’s water sector can create 

jobs, spur local economic development, 

and deliver a host of social benefits 

ranging from improved water 

quality to climate change mitigation 

and adaptation. 

Over 130 senior representatives from 

the water sector including officials from 

government, industry, finance, civil 

society and development organizations 

convened in Sandton, Johannesburg 

on 3 October for the event, hosted by 

GIZ/International Water Stewardship 

Programme (IWaSP), the National 

Business Initiative (NBI), the Strategic 

Water Partners Network (SWPN), and 

the Royal Danish Embassy, to explore 

how best to leverage the full potential 

of investments in the water sector amid 

a severe, ongoing national water crisis, 

contracting economy, and R33 billion 

a year funding shortfall over the next 

ten years for the National Water and 

Sanitation Master Plan (NWSMP). 

“Only by working together to tackle 

prioritised challenges can the water 

sector ensure that South Africa will 

indeed be ‘Ready for the Future and 

Ahead of the Curve’,” said Trevor Balzer, 

the Deputy Director General Department 

of Water and Sanitation, referencing the 

collaborative approach that was promoted 

by President Ramaphosa during 

the launch of the Economic Stimulus and 

Recovery Plan, which pursues, among 

other priorities, the reprioritisation of 

public spending to support job creation 

and investing in municipal social infrastructure 

improvement. 

Restructuring 

expenditure into 

operation and 

maintenance 

of existing 

groundwater 

schemes can act 

as a catalyst for 

local economic 

development 

The event featured keynotes and case 

studies illustrating the economic 

opportunities that can be unlocked 

through strategic investment in the 

water sector. 

A municipal-level case study of 

groundwater management schemes in 

Blouberg Local Municipality suggested 

that restructuring current expenditure 

to shift spending away from an overreliance 

on capital outlays and into 

operation and maintenance of existing 

groundwater schemes can act as a catalyst 

for local economic development. 

“The starting point is how can we 

make existing resources go further? 

Between us, as local and international 

public and private sector, national 

government, and local partners, 

we have the capacity to make this 

happen,” said Jørgen Erik Larsen, 

Counsellor for Water, Energy, Research 

and Innovation at the Royal Danish 

Embassy. “We need to invest more in 

operations and maintenance with a 

'fix it first' approach.” 

A second case study focused the economic 

and social benefits of reducing 

non-revenue water (NRW), namely 

water that is pumped and then lost 

or unaccounted for, through project 

approaches that engage public, private, 

and civil society partners which can 

enable resource-constrained municipalities 

to access the financing, capacity and 

equipment that they lack. 

Martin Ginster, Sasol’s Head of 

Environment: Water, Waste, Land, 

and Biodiversity and member of the 

SWPN leadership said: “Already we are 

seeing that the public and private sectors 

in South Africa are trailblazers in 

developing the type of non-traditional 

and trust-based partnerships required 

to sustainably address our water 

challenges. We remain committed to 

working with all stakeholders to achieve 

a water-secure future for the country.” 


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of the Year Award. 

SBS Tanks® are proven reliable in the Municipal, Mining, 

Fire, Food & Beverage, Agricultural and Water Conservation 

Industries. The SBS® range of tanks has been engineered, 

designed and developed from 20 years’ practical experience 

in the water storage industry, and continues to improve 

from strength to strength. SBS® Water Systems (Pty) Ltd is 

ISO 9001:2015 and ISO18001:2007 accredited. The company 

is also proudly affiliated to various professional bodies and 

organisations. 

PROFILE 

Celebrating 20 Years in Business 

SBS® Water Systems recently celebrated 20 years in business 

with an open week, opening their doors to key stakeholders 

for different events at their Head Office in Pinetown. The event 

was held on the 15th of October until the 20th of October 2018. 

The purpose of the event was to engage the community, staff, 

clients and suppliers in the factory, sites in which SBS Tanks 

were installed, as well as the recently launched Good News 

Stories. The Open Week involved an Employee Appreciation 

Day, Supplier Day, Celebration Dinner and a Fight For Water 

Boxing event. The week was a success, as all staff members 

were excited to welcome everyone that joined us during the 

week. Visitors enjoyed a factory tour, an on-site tank build and 

lunch to end the day. 


A shining success 

in construction 

Nweti Construction leading the way 

with foresight and fortitude 

PROFILE 

Nweti Construction was founded in 2008 by Joshua 

Ndlovu, who is also the Executive Chairperson. 

Although he had been involved in a number of 

entrepreneurial activities before Nweti, Ndlovu was looking for 

a vehicle that would build a sustainable business and contribute 

meaningfully to job creation as well as participate in the macro 

economy. 

The name Nweti means “the moon” in isiTsonga; in Ndlovu’s 

words, the name reflects the key values of foresight and fortitude: 

“It is Nweti’s belief that like the moon, the organization 

must have the foresight to look beyond current horizons and 

challenges to the future that we want to shape. We therefore 

acknowledge realities and challenges but continue in pursuit 

of our objectives even during what may appear to be our 

darkest moments.” 

Ndlovu continues, “With regard to fortitude, we relentlessly 

endeavour to deliver works of the highest quality regardless of 

any obstacles that may inhibit this noble cause. This requires 

the drive and passion, absolute determination and due care to 

achieve our goals.” 

One-stop shop 

Nweti has had a very steep growth trajectory over the last 

three years moving from level 4 CE CIDB grading to currently 

8CEPE order book surpassing R560 million. Ndlovu comments, 

“We are fully aware of the risk of overtrading and have 

implemented our internal fitness programme to improve our 

processes and how we operate so that we can continue to meet 

our clients’ set terms of references as well as deliver more 

complex works within our scale.” 

This growth has set the scene for Nweti to expand. “We 

predominantly operate in Gauteng, however we have done 

work in the North West and have now expanded our footprint 

to both the Western Cape and the Free State, where 

we are currently establishing site for our first contract. It 

is key to note that we have exceeded the respective clients’ 

set targets.” 

Ndlovu continues: “We are currently assessing opportunities 

within the infrastructure value chain. Our starting point 

will be to look at participation in ‘construction materials’ so 

that we can positively dilute our earnings/margins on the one 

hand but also look to be a unique one-stop shop for infrastructure 

development—from material supply to execution. 

“With the ever increasing demand in amenities such as 

housing, retails, clinics and schools, our property development 

division under the Nweti emblem has recently been 

established and we are hard at work to create value and our 

own project pipeline in the foreseeable future.” 

Nweti currently employs over 100 employees and further 

contributes to employment via subcontracting business to 

local communities in line with their corporate social responsibility 

programme. This contribution to society can only 

increase as the company achieves its goals. 

A company apart 

What sets Ndlovu apart from other companies in construction 

is its close-knit culture. “We believe in oneness,” says Ndlovu. 

“We work as a family. We take pride in having a very young 

dynamic team that invests immensely in continuous improvement 

and value engineering. This is equally beneficial to us as 

a contractor and our clients.” 

“Our key strength is quality,” he continues. “We pride 

ourselves on delivering high quality work, first time right, 

all the time. As a niche civils contractor, we strive to be the 

best in this area of construction. Our focus assists us to be 

highly competitive in our space. Respect and simplicity are 

also important—we genuinely respect our stakeholders and 

therefore engage meaningfully well beyond the completion 


NWETI 

CONSTRUCTION 

of our projects. We believe in the simplicity of who we are 

as well as the clarity of our message and value proposition.” 

Thanks to these qualities, Nweti has notched up some 

impressive projects to date. Ndlovu singles out two of which 

he is particularly proud: “In Soshanguve we executed a road 

project for Human Settlements in 2017—our quality delivery 

was a key factor in us securing the second phase of the project 

for the client. In Mamelodi, we are expanding bridges to 

assist with ease of access into and out of the township, as 

part of the Tshwane Bus Rapid Transport system.” 

As a result of these successes, Ndlovu believes that Nweti 

is already changing the world for the better. “We believe that 

our contribution and works as an infrastructure company is 

going to dent the universe, in the sense of a complete change 

in how people live, how business is conducted and the ease 

of integration with the greater Tshwane community,” he says. 

Overcoming adversity 

As with many South African SMEs, Ndlovu admits that the 

conservative approach of financial institutions can be a 

hurdle. “Our biggest challenge as a black-owned construction 

company is at times less favourable funding solutions for a 

company of our size. We would like to believe that as we have 

completed a number of projects of over R50m, the market 

will recognize this and hopefully the financial institutions 

will view our risk profile differently. We continue to engage 

with financial institutions and have introduced more prudent 

financial discipline whilst we place a lot of emphasis on 

effective working capital management.” 

Success, too, can be a risk. “Our second biggest challenge has 

been managing the growth responsibly so as to ensure that 

we do not overtrade, but also to press on with our continuous 

improvement program.” 

Future prospects 

Lately, the construction sector has been under a cloud, with 

big companies like Murray & Roberts shutting up shop or 

planning to leave the country. However, for smaller companies, 

there may be a silver lining. 

“We believe that some of these once great construction companies 

may have suffered from the unfortunate negative 

perceptions of anti-competitive behavior,” says Ndlovu. “We 

don’t know how much did this affect them in securing works 

or to what extent (if at all) it eroded their clients’ trust—I 

think this question would be best answered by the legends 

themselves. That said, the unfortunate exit of the big players 

presents massive opportunities for smaller players to participate 

in the market. It is also terribly important for us to keep 

our lean structure so that we remain agile and adopt quickly 

to changes in the market.” 

Looking to the future, Ndlovu is optimistic. “Our continent 

is young, vibrant and growing fast with huge challenges for 

housing infrastructure. Our reason for existence is defined 

by resolving these real tangible challenges. Our strategy 

and our people will enable us to be counted in the development 

of our country and continent. And as our president 

says, ‘Thuma mina’. We are excited about the future of our 

country and continent,” he concludes. 

PROFILE 


CONSTRUCTION 

Construction slows down 

Civil contractor sentiment falls to a historic low, 

general builders also remain under pressure 

The cidb (Construction Industry 

Development Board) SME 

business conditions survey 

showed that civil contractor confidence 

fell by 6 index points to a historic low of 

27 during the third quarter. Weakness in 

all the underlying indicators, especially 

construction activity, supported the drop 

in confidence. Discouragingly, demand 

for new construction work remains 

a constraint and implies that activity 

growth is likely to remain under pressure 

in the near future. 

From a grades perspective, confidence 

fell to historic lows of 25 and 15 for 

Grades 5 and 6 as well as Grades 7 

and 8 respectively. Respondents in 

these grades experienced a sharp 

slowdown in activity which weighed 

on profitability. 

General building confidence has been 

trending downwards since the beginning 

of 2017. During the third quarter, business 

confidence shed another 3 index 

points to register a level of 30. Ntando 

Skosana, Project Manager for Monitoring 

and Evaluation at the cidb commented, 

“Business confidence amongst general 

builders fell to its lowest level in almost 

seven years. Unfortunately, the outlook 

for this sector does not look promising, 

as the demand for new building work 

remains a constraint.” 

Skosana remarked that “The third 

quarter survey results suggest that 

pressure on smaller building contractors 

in particular is escalating”. Since 

last year this time, business confidence 

for Grades 3 and 4 builders has dropped 

by a cumulative 19 index points to a 

historic low of 28. 

On a provincial level, the deterioration 

in sentiment for both general builders 

and civil contractors in the Western Cape 

was of particular interest. “After outperforming 

other provinces for some time 

before this quarter, building and civil 

contractors in the Western Cape recently 

came under pressure—in line with the 

other provinces,” remarked Skosana. 

“The fact that the lower confidence 

was so pervasive across grades 

and provinces highlights the broadbased 

nature of weakness in the 

building and construction sectors,” 

concludes Skosana. 

About the survey 

The cidb SME business conditions 

survey is conducted quarterly 

among Grades 3 – 8 cidb-registered 

contractors (categorised into Grades 

3 and 4, Grades 5 and 6 as well as 

Grades 7 and 8), both for general 

building and civil industries. 

The main indicator used for 

analysis purposes is business confidence, 

which indicates whether 

respondents find the current 

business conditions satisfactory. 

A business confidence index can 

vary between zero (indicating an 

extreme lack of confidence) and 

100 (indicating extreme confidence). 

The 50 index-point mark is 

interpreted as neutral. 

The fieldwork for the 2018Q3 

survey was conducted during 

the period 30 July and 4 

September 2018. 


MINING 

Mixed bag 

for mining 

The 2018 financial year had its ups 

and downs for SA’s mining industry 


MINING 

The 2018 financial year proved to 

be a challenging year for South 

African mining companies. 

Globally, the financial performance of the 

mining industry improved considerably 

from the previous year. That position was 

largely mirrored by South African bulk 

commodity producers with iron ore, coal, 

manganese and chrome performing well. 

Unfortunately the aggregated SA mining 

industry, which is more exposed to precious 

metals, did not enjoy the same benefit 

from price increases. These are some of 

the key highlights from PwC’s 10th edition 

of SA Mine, a series of publications that 

highlights trends in the South African 

mining industry, released in October.. 

Michal Kotzé, PwC Africa Energy 

Utilities & Resources Leader, says: 

“2018 can be described as a mixed bag 

of performance for South Africa’s mining 

industry, with bulk commodity prices 

continuing to rise during 2018 from the 

lows at the beginning of 2016, while precious 

metals continued to struggle. 

“Cost-saving initiatives could not 

offset the impact of input cost inflation. 

The increased costs and production 

challenges meant a weakening in operating 

results. Together with the gold and 

platinum impairments, it meant that the 

industry recorded a loss for 2018.” 

Michal Kotze 

For the first time since 2012, capital 

expenditure grew as the completion of 

long-term platinum and gold projects 

continues, while older and inefficient 

shafts are being closed. 

While the new mining charter 

underlined the regulatory uncertainty, 

the appointment of a new minister of 

mineral resources in February 2018 

brought hope of open dialogue and more 

certainty to the industry. 

Although the gazetted version of the 

charter is likely to still receive some 

criticism, there was a concerted effort by 

industry and government to move closer 

to each other. Environmental regulatory 

changes are also receiving deserved 

attention. In this edition, we have also 

included a brief look at the regulatory 

changes in the DRC and Tanzania. 

Market capitalisation 

In 2018 total market capitalisation 

of the 31 companies analysed in this 

report recovered to R482 billion (2017: 

R420 billion). Although it is a R62 billion 

increase on the previous year, it is 

still below the June 2016 level of R560 

billion. 

Gold and platinum group metals 

(PGMs) continue to dominate the share 

of market capitalisation of the companies 

analysed, but experienced declines 

of 4% and 5% respectively. Iron ore saw 

an increase of R40 billion from 2017 

to 2018; increasing the commodity’s 

percentage share of capitalisation from 

13% to 20%. The rest of the commodities 

remained stable. 

Production 

Manganese, iron ore and chrome are 

the only commodities that showed real 

production growth over the last 15 years. 

Coal production showed a marginal 

increase for the first time in three years. 

However, it has remained largely flat 

over the last 15 years. Gold continues its 

long-term decline. The ongoing low-price 

environment for platinum is likely to 

result in further curtailment of supply in 

the absence of a reasonable price increase. 

Financial performance 

Total revenue generated by the companies 

analysed for the financial 

Andries Rossouw 

year-end 30 June 2018, increased by 

8% (R28 billion) from the prior year. 

Increased coal and manganese revenues 

mainly drove this. Coal grew 

its share of total SA mining revenue 

and leads at 29% of mining revenue 

for the year. The increase was driven 

by good Rand price increases for the 

commodity, with production marginally 

up. Platinum and gold reflected a 

lower percentage on the back of relatively 

weak prices and low production 

for the year. 

The rand strengthened in the second 

half of the year resulting in an average 

decrease in prices received for gold, 

platinum and iron ore. “The decrease 

in rand prices, as well as weaker production 

for gold and platinum, are 

putting deep-level South African gold 

and platinum producers under significant 

pressure as reflected in the market 

capitalisation of these entities,” Andries 

Rossouw, PwC Partner adds. 

Despite various cost saving initiatives, 

above inflation cost increases continues 

to put the industry under pressure with 

a decline in EBITDA. 

Capital expenditure recovered from 

the lowest levels in ten years to reflect 

a 19% increase. Operating expenses 

increased by 13%. Labour costs continue 

to be the biggest cost driver in the 

mining industry. 


MINING 

The current year impairment doubled from 

the previous year mainly because of gold and 

platinum impairments. After last year’s net 

profit, this year’s companies are back in a lossmaking 

position due to the higher impairments 

and lower EBITDA. The EBITDA margin of 22% is 

lower than the previous year’s 25%. 

Net interest expense increased by R2 billion 

from the prior year, mainly because of borrowings 

utilised for business combinations. 

The mining companies had an aggregated tax 

expense of R9 billion down from R10 billion on 

the previous year, but reflected increased tax 

payments of R18 billion, a 29% increase on the 

prior year. 

Solvency ratios decreased slightly compared 

to the previous year as a result of the net loss 

realised due in the main to impairment provisions 

recognised. The aggregated liquidity 

position is also healthy and better than for the 

global mine position. Unfortunately, this hides 

the challenges still experienced at individual 

company level. 

The risk environment 

The risks disclosed by global mining companies 

and those risks disclosed by South African 

mining companies largely collerates. However, 

the following matters stand out from the comparison: 

South Africa is less prone to natural 

disasters, although some mines have had to 

close in the past because of incidences such 

as flood damage and droughts. Technology and 

cyber risks are becoming more prominent in the 

global mining environment. Market competition 

is not disclosed in South Africa as a major risk. 

The Mining Charter 

The revised Mining Charter was released in 

June 2018 and gazetted on 27 September 2018. 

New licence holders are required to have 

30% black ownership. An added requirement 

is that of carried interest (CI). The concept of 

CI is not new to the mining industry. Carried 

interest means shares issued to qualifying 

employees and host communities at no cost to 

them and free of any encumbrance. The cost 

for the carried interest shall be recovered by 

a right holder from development of the asset. 

Many African countries have provisions in 

their mining regulations that give government 

a 5%-15% free stake in mining companies. 

However, this has not always proved to have 

the desired effect, as host states are often of 

the view that mining companies do not make 

dividend payments promptly. 

In addition, the 20% black female representation 

requirement has changed from last year’s 25% 

black female representation requirement. 

It is notable that the Mineral and Petroleum 

Resources Development Amendment Bill, which 

has been subject to legislative processes since 

2013, has been withdrawn. 

With the Charter now gazetted, it remains to 

be seen whether business and government can 

more effectively work towards a more stable 

South African mining environment. 

Value to mining investors in South Africa 

The mining industry continues to add significant 

value to the country and its people. Stakeholders 

in the industry include employees and their 

families, unions, government, shareholders, suppliers 

and customers. As reported in company 

value added statements, employees still take 

the lion share of value added at 47%, followed 

by government through direct taxes, as well as 

payroll and royalties with 24%. Shareholders 

got an improved share on the back of improved 

dividends from bulk commodity producers. 

The DRC 

Some 16 years after the enactment of the initial 

version of the mining code, an economic crisis 

has hit the Democratic Republic of the Congo 

(DRC). During this time, cobalt has become the 

most expensive material in the portable lithiumion 

battery used in smartphones and electric 

vehicles (EVs), now representing about half of 

the market for the metal. The DRC has 69% of 

the global cobalt production share. 

A new mining code has been drafted for 

stronger rules, more transparency, opportunities 

for local development and an equitable 

fiscal regime. However, the final version signed 

into law in March 2018 is unsupported by many 

mining companies. 

Tanzania 

Tanzania recently introduced regulatory changes 

for the mining sector, which appear to have 

dampened investor sentiment. These changes 

have not come about in isolation as a number 

of jurisdictions in Africa have introduced more 

severe regulatory regimes – but it does appear 

that Tanzania may have gone further than most. 

Some of these regulatory changes are the new 

income tax regime introduced in 2016, increased 

royalty rates and a new ‘clearance fee’ charged on 

the export of minerals, restrictions on VAT input 

credit in relation to the export of unprocessed ore 

and new local content requirements. 


INTERNATIONAL TRADE 

Networking 

with Nigeria 

Trade mission meets with success 

Earlier this year Wesgro’s Trade 

Unit embarked on a mission to 

Nigeria. As a result 10 declarations 

were signed with an estimated economic 

impact of R328 million over the next five 

years, with the potential to create 75 jobs 

in the Western Cape. 

The mission formed part of Wesgro’s 

Africa International Trade and Outward 

Foreign Direct Investment Programme, 

which helps local businesses ready to 

invest in the rest ofAfrica. The delegation 

comprised of 16 companies, five of which 

were Halal Certified, looking to establish 

trade and investment ties in Nigeria. 

The mission programme comprised of 

business networking seminars and b2b 

meetings designed to provide a platform 

for Western Cape companies to meet their 

Nigerian counterparts with the view of 

signing business deals and partnerships. 

Sectors of focus included Agribusiness, 

engineering and oil and gas. 

Addressing delegates at the Business 

Networking Forum hosted by Wesgro 

in Lagos, the Chairman of the Nigeria- 

South Africa Chamber of Commerce, Mr 

Foluso Olajide Phillips, indicated that 

the Nigerian economy is slowly recovering 

from recent years of economic 

hardship caused by the oil price crash 

of 2014, which created havoc across oil 

exporting regions around the globe. 

He continued that the economy 

has since seen growth in agricultural 

exports, with lower inflation 

rates bringing lower interest rates 

resulting in a significant increase in 

public expenditure. 

“These factors coupled with the large 

market of over 180 million people 

provide unlimited opportunities for 

Western Cape companies wanting to do 

business in Nigeria. We want to thank 

our partners, in particular the Deputy 

Director-General of the Department of 

Economic Development and Tourism 

(DEDAT), for your continued support—especially 

in the expanding of the 

Western Cape's Halal footprint in the rest 

of Africa,” commented Wesgro’s Head of 

International Trade, Denan Kuni. 

Wesgro CEO, Tim Harris, added: “The 

Nigeria—South African Chamber of 

Commerce is Wesgro’s strategic partner 

in Nigeria. Through our partnership, 

Wesgro’s delegates are able to tap into the 

vast network of the Chamber’s members, 

made up of a variety of key business sectors 

of the Nigerian economy. Further to 

this, the Chamber has been instrumental 

in intensifying Nigerian and South African 

business relationships in the area of promoting 

bi-lateral trade and investment.” 

The presence of multinational oil 

companies and growth in the telecommunication 

sector has generated a 

significant level of business opportunities 

for companies operating in sectors 

such as agriculture, agribusiness, manufacturing 

and light engineering. 

In addition, the Nigerian government 

is spending much more than the 

previous administrations on capital 

projects, such as road construction, 

rail works and power, with the aim of 

stimulating economic growth in the 

region and diversifying away from an 

over-reliance on oil for revenue. 

Highlighting the importance of this 

African market, Cape Town Executive 

Mayor Patricia de Lille said: “We are 

competing in a global village and in 

doing so our Economic Growth strategy 

also has a strong focus on building economic 

ties with the rest of the Africa 

and contributing to the Africa Rising 

narrative through our Enhanced African 

Agenda. It is key to create an enabling 

environment for Cape Town businesses 

to trade and invest with Nigeria as 

Africa’s biggest economy.” 

Minister of Economic Opportunities, 

Alan Winde commented: “The Wesgro 

trade unit has recorded yet another successful 

trade mission, securing ten new 

trade declarations, with a focus on Halal, 

agri-processing and the oil and gas sectors 

which form the cornerstones of our 

Project Khulisa growth strategy. We look 

forward to developing our relationship 

with Nigerian businesses and growing 

trade between our countries and on the 

African continent as a whole.” 

“Nigeria is the latest stop on a programme 

of trade missions organised 

by Wesgro in the 2018-19 financial 

year—with the strategic objective of 

positioning the Western Cape as key 

supplier of products and services into 

Africa. The Nigerian market is known 

for being difficult to infiltrate however, 

once you gain market access, the opportunities 

across sectors are extensive. 

We are excited to see Western Cape 

companies extend their footprint in this 

significant African market,” concluded 

Wesgro’s Head of International Africa 

Trade, Michael Tiam-Gamwo. 


Dr Jabu Mabuza, President of Business 

Unity South Africa 

The Zululand Chamber of 

Commerce and Industry (ZCCI), 

is thriving as the voice of 

businesses in Zululand under its first 

female president in 87 years, Judith 

Nzimande. 

She also chairs the influential ZCCI 

CEO’s Forum, a platform for local CEOs 

of large corporates to collaborate on 

improving firm-level competitiveness 

The voice of 

business in Zululand 

ZCCI leads the way in 2018 

of participating companies. Focus areas 

include water security beyond 2030 and 

the 4th Industrial Revolution and its 

impact on manufacturing, skills development, 

and transformation. 

The Deputy Governor of the South 

African Reserve Bank, Daniel Mminele 

and the Mayor of the City of uMhlathuze, 

Cllr M. Mhlongo had high-level engagements 

with members of ZCCI CEO’s 

Forum on Zululand’s economic climate 

and constraints on 01 August 2018. 

The ZCCI annually hosts three 

major events, i.e. a Business Women’s 

Conference, SMME Seminar and the gala 

event, the Business Excellence awards. 

The keynote speaker of the 2018 ZCCI 

Business Women’s Conference was the 

dynamic Johanna Mukoki, co-founder 

and Group CEO of Travel with Flair. 

Deputy Minister of Small Business 

Development, Honourable Cassel 

Mathale delivered the opening address 

at 2018 ZCCI Annual SMME seminar. 

The theme of the annual SMME 

seminar was: Building small businesses 

to business empires. Nomfundo 

Mcoyi, Founder and Group CEO of the 

Icebolethu Group was a guest speaker 

at 2018 ZCCI SMME Annual Seminar 

in Zululand. 

ZCCI and TRIAS, a Belgian 

Development Programme has supported 

the development of micro, small and 

medium enterprises. As a result, the 

ZCCI’s SMME development and support 

programme obtained the International 

Labour Organisation’s Start Your 

Business training accreditation during 

May 2018. 

PROFILE 

LEARNERSHIPS AVAILABLE 

BUSINESS/GENERAL STUDIES N4 - N6 

SERVICES • Hospitality 

ENGINEERING/NATURAL SCIENCE STUDIES N1 – N6 

ARTISAN TRAINING 

SKILLS TRAINING • Clothing Production • Cosmetology 

Tshwane South TVET College is a certified Centre of Specialisation in Mechanic Fitter, 

and Fitter & Turner trades 

LEARNERSHIPS 

BURSARIES AVAILABLE 

HEAD OFFICE: 012 401 5000 

CAMPUSES 

Atteridgeville 012 373 1200 

Centurion 012 660 8500 

Odi 012 725 1800 

Pretoria West 012 380 5000 

www.tsc.edu.za / info@tsc.edu.za 

Tel: 012 401 5000 

ISO 9001 2008 

Follow us on 

Tshwane South TVET College 

@tsc_tvet 

tsc_tvet 

Tshwane South TVET College

INFRASTRUCTURE 

Lowering 

barriers to entry 

Can the Luxembourg Protocol reshape the African rail industry? 

The ability of Africa’s rail industry 

to unlock billions of dollars 

of investments from private 

investors and create a more vibrant and 

competitive industry through increased 

freight volumes, could lie in adopting a 

ground-breaking new global treaty that 

provides a central registry of ownership 

of railway assets. 

A major stumbling block for private 

investors looking to invest in Africa 

has always been the need to manage 

the risks inherent in cross-border 

operations, where there is limited legal 

infrastructure, and no common system 

for tracking assets and identifying 

railway equipment. Cross-border operations 

are essential to a thriving African 

rail industry, but operators need to know 

their rights are protected. 

Unlike the aviation industry there 

is currently no single global system 

relating to the ownership and identification 

of railway equipment. The 

Luxembourg Protocol to the Cape 

Town Convention will change that 

through a worldwide legal framework 

to recognise and regulate the security 

interests of lenders, lessors and 

vendors of mobile railway assets. A 

central registry, in Luxembourg, will 

issue unique identification numbers 

for all rolling stock globally at a negligible 

cost, ensuring that every creditor 

and operator can identify and track 

rolling stock wherever it is. 

The Swiss based Rail Working Group 

is already engaged in discussions with 

African rail operators and African governments 

with a view to ensuring the 

Protocol is embraced by every country 

with rail operations. The ultimate goal 

is to have the Protocol and the central 

registry recognised in local legislation. 

By recognising the Luxembourg 

Protocol, African countries with rail operations 

will provide certainty of ownership 

for potential investors, thereby reducing 

both creditor and operator risk—and once 

risks are lowered, we’ll see a greater pool 

of capital finance available for investment, 

which will lower the barriers to 

entry for smaller operators and ultimately 

result in a more competitive and dynamic 

African rail industry. 

A study commissioned by the Rail 

Working Group this year, by economic 

consultancy Oxera, suggests that 

implementing the Protocol in South 

Africa would save the country up to 

R20bn in microeconomic benefits, 

including the reduced cost of finance 

and the knock-on effects of the investment 

in new rolling stock. 

Reducing finance charges for rolling 

stock ultimately translates into a reduction 

of freight charges for customers. This 

means the rail industry can become more 

competitive. It really is one of those steps 

that will allow Africa to advance, and 

there is absolutely no downside to it. 

James Holley, Chief Executive, Traxtion 

Group 


Total 

turnkey 

solutions 

Afritech Equipment Solutions (Pty) Ltd 

provides our clients with a total rental 

or supply package, turnkey solution. 

Our rental fleet consists of equipment that has 

been specifically researched, developed and 

manufactured for the various industries in the 

Southern African market. These market segments 

include, but are not limited to, Power Generation, 

Petrochem Refineries, Paper and Pulp Mills, Steel 

Mills, Solar Sites and Pipeline projects. 

Our package solutions consist of both on-site 

technical support and inventory stock holding 

with management and control systems customized 

to our client specific requirements. Our 

vision and aim is to become the industry leader 

in both the rental and sales market sectors, 

where our company name, brands and services 

are associated with quality, reliability, and most 

important of all, experience. Afritech Equipment 

Solutions have currently the most modern 

rental fleet in Southern Africa. Our rental equipment 

scope incorporates a broad spectrum of 

supply and includes the following mainstream 

equipment; 

• Diesel Generators of all sizes up to 1 

Megawatt units 

• Diesel Welders and Diesel Driven Welding 

Combinations 

• Diesel Driven Compressors up to 900CFM 

• Mobile / Diesel Driven Lighting Plants 

Automatic Telescopic 

• Inverter Welding Machines and Accessories 

for all welding processes 

• Power tools and Accessories 

• Pneumatic Tools and Accessories 

• Pumps- Diesel Driven and Electric 

• Mobile Certified DB Boards 

• Plasma and Gas Cutting Equipment 

• Rigging Equipment and Accessories 

• Hand Tools and Spanners 

• Industry Specific Equipment 

Contact one of our regional branches or visit our 

website on www.afritec.co.za

SKILLS 

Sourcing 

artisanal skills 

How a Temporary Employment Service can bridge the gap 

South Africa is well known for its 

mining and oil and gas industries 

that contribute to a large portion 

of the world’s metals and minerals and 

form a significant part of Sub-Saharan 

Africa’s oil production. However, for a 

country that contributes to these highly 

technical and specialist industries, we 

have a dearth of many of the artisanal 

skills required within these industries. 

Most notable is the shortage of 

skilled, suitably qualified double 

coded welders to be found within 

our borders. Double coded welders 

are qualified to work on more than 

a single material type in adverse or 

challenging conditions, such as underwater 

or in confined spaces. 

Typically, to cover the skills gap, South 

African industries turn to feeder countries 

to source these skills like Thailand, 

India, Pakistan and the Philippines. This 

negatively impacts our Gross Domestic 

Product (GDP) figures, especially 

when South Africa has the people and 

industrial environment to potentially 

become a feeder country, too. 

The scarcity 

At the recent launch of the Cyril 

Ramaphosa Foundation Artisan 

Programme, Sean Jones, Marketing 

Director for the Artisan Training 

Institute, said, “Skilled tradesmen are 

highly sought after in our economy, and 

yet every year we are forced to recruit 

thousands of artisans from other countries 

to fulfil this demand. We have over 

600,000 unemployed graduates in South 

Africa. We need to show young people 

that learning a trade is a viable and 

desirable alternative to university.” 

There is a marked lack of education 

around the opportunities available for 

careers in welding. Despite it being 

a relatively lucrative field and many 

training institutes and technical colleges 

offering training in this niche skill, not 

many institutions take advantage of 

school job fairs or fully advertise the 

possibilities. 

Becoming a double coded welder is a 

very intensive process. Beyond rigorous 

training in harsh environments, as with 

any artisanal skill, it requires consistent 

practice. However, double coded welding 

is often project based, and in a specific 

area where there are large requirements, 

a project tends to only come 

around a few times per year. For this 

reason, many welders tend to move to 

wherever the work is, neglecting a project 

in one area in order to cover a new 

project elsewhere. 

The requirements to become a double 

coded welder are also quite specialised. 

To enter the field, people need to be able 

to work in harsh, confined and often 

solitary environments. They also need 

to possess a level of ambidextrousness, 

as the ability to weld with either hand 

to reach awkward positions is necessary. 

The fit 

There is a large demand for double-coded 

welders in South Africa, and this is a 

gap that is well suited for Temporary 


SKILLS 

Employment Service (TES) providers to fill. Due to 

the project-based nature of the job, TES providers 

are able to permanently employ double-coded 

welders and move them to wherever projects are 

happening. They can ensure that the welders are 

compensated fairly, taking care of transport and 

accommodation costs no matter where the job 

takes them. 

TES providers can also provide the training, 

as well as put welders through the stringent 

testing process. Typically, we find that only 

five to seven welders out of every 100 that are 

tested, pass the test for double coded welding. 

This is a very concerning figure, compared with 

the ninety percent pass rate for welders from 

feeder countries—the industry norm. 

Frequent training and regular work can help 

to maintain a higher standard of local doublecoded 

welders who pass the test. Additionally, 

TES providers are able to manage the testing 

process, which is usually expensive due to the 

cost of materials used to conduct a test. 

What industry can do 

Artisanal apprenticeships have decelerated in 

recent times. Apprenticeships used to be considered 

one of the primary methods of instruction 

for specialised skills, however today’s job market 

tends to value certifications and theoretical 

qualifications over technical experience. In this 

type of field, experience is absolutely critical, 

and the only way that many school leavers are 

able to build up the skills needed to become a 

double coded welder is through apprenticeships. 

Schools can invest in creating more awareness 

from a grassroots level, already, highlighting 

the options and possibilities outside of current 

trending careers like marketing and IT. There 

will always be a need for skilled artisans, and 

as the likes of automation begins to surge in 

industries, artisanal trade skills will become 

increasingly valuable. 

Finally, industry can turn to TES providers 

to facilitate their staffing needs for these skills, 

accessing a pool of experienced, qualified and 

pass-tested individuals to fulfil their requirements. 

TES providers can not only bolster the 

local skills availability but can also seamlessly 

provide access to skills from feeder countries 

for various projects, without a business having 

to concern themselves with VISAs, passports, 

travel, or even training and testing. 

Tebogo Moalusi, National IR Director at 

Workforce Staffing 


The crucial role 

of mentorship 

PPS encourages graduate professionals to 

mentor the new generation of professionals 

PROFILE 

The PPS Foundation, set up by the Professional Provident 

Society (PPS) believes that members of the society 

and all established graduate professionals have a vital 

role to play in stimulating the vitality of the new generation 

of professionals. Through its PPS Professionals Connect 

Mentorship Programme, the PPS Foundation enables South 

Africa’s professionals to contribute towards bringing the 

potential of young people to fruition. 

The PPS Professionals Connect Mentorship Programme 

Launched last year, the programme provides students, professional 

graduates, and entry-level employees with the 

opportunity to connect with and be mentored by established or 

retired professionals from various trades and industries. The 

programme allows mentors to share their knowledge, skills 

and life-learnings that will be essential for their future, while 

also exposing them to a broader range of perspectives needed 

to bolster their professional and personal growth. 

The programme aims to propel the organisation’s mission 

to make a sustainable and measurable contribution to South 

African communities. This will be achieved by creating a platform 

that assists beneficiaries during the transition period 

from tertiary education to the workplace environment, and 

beyond. 

“The importance of the role of mentors cannot be stressed 

enough. As a young graduate in the corporate world, it can 

feel like you’re alone, and this makes mentors more important 

than ever,” says Vuyo Kobokoane, the Executive Head: 

PPS Foundation. 

“At PPS, we believe that mentorship is one of the most 

personalised ways to educate, and that mentorship is the 

gateway for young professionals to unlock their potential and 

to understand the workplace, as this will prepare them for the 

future,” she adds. 

Why mentorship is critical 

It’s no secret that educated, knowledgeable and well-trained 

employees are better able to confidently produce results than 

employees who lack the knowledge. Therefore, by encouraging 

mentorship in the workplace, it ensures that young professionals 

are able to complete their work with the understanding 

required for the position. 

“It’s important that established professionals take up the 

challenge of being mentors to young professionals to help in 

the development of young leaders. This will, in turn, encourage 

them to become mentors themselves when the time comes,” 

adds Kobokoane. 

“With the high unemployment rate among the youth at 53.7% 

in the second-quarter of 2018 and the graduate unemployment 

rate at 33.5% for those aged between 15–24, and 10.2% among 

those aged 25–34 years, mentorship can make a tangible difference 

in getting the CV right, setting goals, preparing for job 

interviews and landing the position,” she explains. 

Through the PPS Foundation, mentees are paired with 

professionals from various industries and trades including; 

science, technology, engineering and mathematics (STEM) 

related fields—which are the key areas that the PPS Foundation 

strives to improve access to and participation in. 

Mentorship can also help to fast-track the transfer of skills, 

meaning that businesses will have productive employees 

quicker than before. “However, it is important that young professionals 

understand that mentorship is a partnership with 

mutual trust, respect and understanding. It’s imperative that 

you and your mentor understand each other and can be honest 

with each other. It will be easier to gain knowledge and advice 

from someone who has been through the same journey,” concludes 

Kobokoane. 

How to get involved 

The Professionals Connect Mentorship Programme is one of 

the corporate social responsibility initiatives at PPS. 

To become a mentor, interested individuals can register via 

www.professionalsconnect.co.za. For more information on the 

Professionals Connect Mentorship Programme, email professionalsconnect@pps.co.za. 

Visit www.pps.co.za for more information. 

PPS is an authorised financial services provider. 


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CHINA-AFRICA 

Maximising 

African agency 

The importance of understanding the complex 

ties between African countries and China 

The complex relationship between 

Africa and China has become 

even more complicated this year. 

Initially, 2018 was set to reaffirm the 

bond through the latest Forum on China- 

Africa Cooperation summit held in Beijing 

in September. The summit delivered 

its usual pageant of African leaders, 

side deals, and the announcement of 

a USD$60 billion financing package. 

The year also saw the recurrence of 

misgivings about the relationship. 

The most explicit theme of this conversation 

was debt. Donald Trump’s 

US administration added fuel to smouldering 

anxiety, and China found itself 

having to defend its lending to Africa— 

at home and globally. At the same 

time, African governments are battling 

rumours that they are about to hand 

over state assets to the Chinese. 

The debt debate is flawed—not least 

for underestimating Western contributions 

to African debt. Nevertheless, 

it is revealing. In particular, the 

debate reflects an anxiety that has 

haunted relations between China and 

the continent since the beginning 

of this century: the massive power 

gap between China and individual 

African countries. 

Power imbalances 

The constant rhetoric of win-win 

cooperation between China and Africa 

has never adequately answered the 

simple structural question at the heart 

of the relationship. That is: how is an 

economy the size of Benin’s or Togo’s, 

for example, supposed to meaningfully 

engage with the Chinese behemoth? 

It’s a bit like trying to speed up your 

bicycle by grabbing on to a passing 

jumbo jet. It can take you to the 


CHINA-AFRICA 

next level, or it can simply rip off 

your arms. 

The fundamental economic and power 

imbalance between China and African 

countries has led to the relationship 

being criticised as neocolonial. The 

truth, however, is that African governments 

exercise more agency than they 

are given credit for. This includes frequently 

playing China and traditional 

Western development partners off 

against one another. 

The word “agency” is key here: to 

what extent is Africa able to freely make 

its own decisions and drive the best 

deals with China? 

Our new research focused on this 

issue. We looked at two emerging areas 

shaping African agency in relation to 

China. These are reforms to the African 

Union (AU) and the Belt and Road 

Initiative (BRI). The initiative involves 

a massive infrastructure rollout aimed 

at linking China to Europe and beyond. 

The aim is to set up a zone of shared 

development that encompasses Central 

and Western Asia and Africa. 

The AU and the Belt and Road 

initiative 

The AU has proposed a set of reforms 

to streamline African negotiations at 

events like the FOCAC under the auspices 

of the continental body. This could 

be seen as a step towards the frequently 

repeated goal of Africa negotiating collectively 

with China. But, in fact, we 

show that it faces significant resistance 

from within the continent. This comes 

both from powerful states worried about 

losing control of their bilateral relationships 

with China, and from smaller 

states worried about being excluded. 

China’s BRI reveals other aspects 

of African agency. It’s structured by 

numerous bilateral agreements, but 

is also subject to regional as well as 

local pressures. The way the initiative’s 

projects have been pulled into national 

debates involving opposition politics 

shows that the range of actors constituting 

African agency is potentially 

much wider than national governments. 

We argue that before African agency 

can be maximised, this aspect of 

relations between China and particular 

African governments needs to be taken 

into account. Thinking about the issue 

has so far fixated on the role of national 

governments, to the exclusion of other 

actors. The biggest include regional 

economic communities such as Nepad 

and the AU. The smaller ones comprise 

opposition parties, civil society, local 

businesses and communities. All contribute 

to and constitute African agency. 

What is this agency, how does it work 

and how can it be strengthened? 

Understanding African agency 

We identified three key areas where 

African agency can be located. 

Firstly, African agency is expressed 

in the frameworks and documents 

that govern bodies like the forum. For 

example, in the early days arrangements 

paid relatively little attention 

to the issue of industrialisation. That 

changed after the formal adoption in 

2015 of the AU’s Agenda 2063—its 

blueprint for Africa’s sustainable development. 

The forum held that yearsaw 

an uptick in how many times the issue 

was mentioned. 

By 2016, African industrialisation 

had become a key initiative of China’s 

presidency of the G20. Beijing directed 

an unprecedented level of G20 attention 

to the continent. 

By 2018, the Beijing summit ended 

with fewer declarations of intent 

relating to industrialisation. Instead, it 

had become integrated into the continental 

and bilateral planning processes. 

In particular, it features regularly in 

discussions on development financing. 

Likewise the word “training” was mentioned 

over 40 times and in virtually 

every section of the Beijing Action Plan. 

This suggests there is a shift from 

declarations of intent to more specific 

engagement towards industrialisation. 

This doesn’t necessarily guarantee the 

success of Africa’s industrialisation. But 

it shows that China responds to African 

agenda-setting. 

Secondly, African agency is diffused 

across various levels and among various 

actors. Any analysis of African agency 

has to consider the complex interactions 

between continental bodies like the AU, 

regional economic blocs, national governments, 

civil society, business, and 

local communities. Each plays a role 

in shaping African decision making in 

relation to China. Partnerships that cut 

across the state-business-civil society 

divide are as important as state led initiatives 

in articulating policy initiatives 

in relation to China. 

Thirdly, it’s important to think of the 

changing terms of agency as African governments 

face growing debt burdens via 

such initiatives as the BRI. For instance, 

rumours that the Zambian government 

offered its national electricity supplier as 

collateral in exchange for a new tranche 

of Chinese loans have reportedly caused 

political division at home. 

Critics have focused on debt as diminishing 

African agency. What they’ve 

ignored are the significant financial and 

reputational risks to China. 

Maximising African agency 

As Africa becomes more involved in 

global initiatives, and as it moves 

towards greater continental integration 

via AU reforms and the Continental Free 

Trade Agreement, the need increases 

to think harder and more creatively 

about what African agency means. It 

isn’t enough to simply reiterate the call 

for Africa to negotiate collectively with 

China—not least because this disregards 

the complex interactions between 

African governments. 

Rather, it’s time for more comprehensive 

thinking about how African agency 

manifests across actors and geographic 

scales. Only once we have a firmer 

handle on this can we move towards 

maximising it. 

Yu-Shan Wu, Foreign policy researcher 

and doctoral candidate, University of the 

Witwatersrand 

Chris Alden, Professor of International 

Relations, London School of Economics 

and Political Science 

Cobus van Staden, Senior Researcher: 

China Africa, South African Institute of 

International Affairs 

theconversation.com 


Investment 

conversations 

Championing economic 

development in the iLembe district 

PROFILE 

Enterprise iLembe is an Economic Development 

Agency of the iLembe District Municipality mandated 

to drive economic development and promote trade 

and investment in the region. The philosophy that drives 

Enterprise iLembe is built on promoting a participatory 

process where local people from all sectors work together to 

stimulate local commercial activity, resulting in a resilient and 

sustainable economy. It is a tool that will help create decent 

jobs and improve the quality of life for everyone, including the 

poor and marginalized. 

The iLembe district of KwaZulu-Natal province is packed with 

opportunity, from agriculture and manufacturing to tourism, 

commerce and services. It even produces wine! We spoke to 

Enterprise iLembe CEO Nathi Nkomzwayo to find out more. 

What is the reason for being of Enterprise iLembe 

Economic Development? 

We are an Economic Development Agency of the iLembe 

District Municipality and our mandate is to essentially drive 

economic development as well as to promote trade and investment 

in the region. We do this through the development of the 

economic development strategy that guides economic activities 

and programmes. The iLembe district is made up four local 

municipalities, namely KwaDukuza, Maphumulo, Mandeni 

and Ndwedwe. These four local municipalities are all different 

in terms of their economic outlook and their developmental 

needs. Some parts of the district are extremely rural and some 

are urban and peri-urban. You are also looking at the coastalline 

on one end and then agricultural space on the other; each 

of these have their own economic and environmental impact. 

This then means that as the entity responsible for championing 

economic development in the district, our strategy and 

approach needs to zoom in on the development needs of the 

individual local municipal areas while ensuring broader alignment 

and integration in terms of what we do. It means that we 

need to be conscious of the unequal society that we deal with, 

which in turn translates to the unequal business environment. 

It falls to us to ensure the enabling business environment for 

all, big and small, at all times. 

Our biggest task is attracting direct investment and infrastructure 

development to the district. We work with various key 

stakeholders such as our partners Trade and Investment KZN and 

iLembe Chamber to position the district as the investment destination. 

Programmes include a bi-annual business confidence, 


aimed at providing a picture of the business confidence in the 

iLembe District, as well as an overall business outlook. 

How does EIED go about identifying, developing and 

implementing projects? 

In most cases we are guided by our strategic geographic location 

and economic sectors that are most viable in our region. 

These sectors are agriculture, manufacturing, tourism, oceans 

economy, renewable energy as well as commerce and services. 

Being strategically located between the two major South 

African harbours in Durban and Richards Bay, iLembe District 

is the highest priority development corridor in the province 

of KwaZulu-Natal. The close proximity to the King Shaka 

International Airport and the Dube Trade Port also connects 

the district directly to international markets. 

These are all major factors in the development of projects 

that will take the economy of the district to new heights, and 

our role as the economic development agency is to ensure 

that we have a business environment that can raise to the 

occasion, grab these opportunities and help us build a sustainable 

economy. 

Further, we have established a Business Incubator Facility 

in the District, the objective behind the initiative is to provide 

assistance for the start-up and growth stages of entrepreneurs 

or SMMEs in the district. Working in partnership with 

Invotech and Africa Unite, the project assists with access to 

technical and business related skills necessary for business 

growth process. It is essentially the one-stop shop for all 

business related information, ensure compliance with all the 

necessary regulation and also facilitate access to funding 

for SMMEs within the district. Enterprise iLembe has also 

finalised the Broadband Masterplan for the district. We are 

currently trying to source the necessary funding for the 

design phase of the project. 

How does Ilembe work with investors? 

We continuously engage with potential investors and 

sometimes even sign MOUs that would then lead to direct 

investment to the region. We publish an investor prospectus 

that outlines the investment landscape of the region as well as 

investment opportunities. 

We also host various delegations and take them through 

various investment opportunities within the district. One of 

the delegations we have hosted recently is the American/ 

Israeli delegation and they have shown interest in investing 

in renewable energy sector. 

We also work a lot with entities such as Trade & Investment 

KZN in creating interactions that can drive direct investment 

and we will be signing an SLA with them in this respect. Over 

the next few months we will be hosting quite a number of key 

business interactions and platforms that will be seeking to 

drive investment conversations within the context of iLembe 

District and are planning on hosting an Investor Summit in the 

first quarter of 2019. 

PROFILE 


PROFILE 

The iLembe Vineyards project is said to be "the perfect 

combination between agriculture and tourism". Please 

tell us more about this project. 

The journey of the project started in 2011 with the assistance of 

funding from the KZN Department of Cooperative Governance and 

Traditional Affairs (COGTA). It is indeed the perfect combination 

of agriculture and tourism as the local cultivator, Villard Blanc, is 

planted in our iLembe Vineyards in Maphumulo, Mandeni and 

Ndwedwe. This has obviously led to job creation for the locals. 

In order to grow the Seventeen Eighty-Seven brand, we have 

extended the range by bringing other SA cultivars and we 

now have Rose, Chenin Blanc, Cabernet Sauvignon, Merlot 

and Sauvignon Blanc. Named after the birth year of King 

Shaka and also known as the “Jewel of the Zulu Kingdom”, 

Seventeen Eighty-Seven has been well received in the market 

and we are still going to push it further and expand our distribution 

channels to ensure that we reach other domestic 

and international markets. 

How has tourism contributed to economic development 

and job creation? 

The past year saw a record of over 800 000 tourists visiting the 

iLembe District, contributing over R3 billion to the economy 

of the region. Attractions such as the Ballito Junction Mall 

remain very key drivers behind such tourism numbers in the 

region as well as ensuring the viable that economic activity 

in general. As the shopping destination, the mall attracted 12 

million visitors during its first year of operating. This means 

that other than tourists from outside the region and outside the 

country, the mall has become the favourite shopping destination 

for locals, which is very key for the growth of the local 

economy as well as job creation. 

Another milestone for the mall within its first year was 

winning the prestigious South African Council of Shopping 

Centres’ Retail Design and Development Award (RDDA) in 

2017 for a new retail property development. This gave further 

testimony to the significance of the mall as the new tourism 

and lifestyle offering in the region. 

It must be noted though that as a destination there are 

many other tourist offerings besides shopping; these include 

the beach, cultural, history and adventure tourism. The region 

is also close King Shaka International Airport making it 

extremely accessible for holidaymakers. 

How does the flagship National Schools Nutrition 

Programme benefit farmers and learners? 

As per our mandate, Enterprise iLembe procures vegetables 

from farmers, preferably within the iLembe District, 

to supply to schools for the National Schools Nutrition 

Programme. Currently approximately 63% of the 180 

tons required for the programme are procured from local 

farmers. A total of 119 farmers, which are mostly co-ops 

and SMMEs, supply fresh produce to the 406 schools in the 

district. This has been achieved through the setting up of 

agri-hubs in Mandeni, KwaMaphulo and Ndwedwe. These 

hubs are responsible for the distribution of fresh produced 

to schools. 

This is a key programme for Enterprise iLembe as it talks 

directly to the empowerment of local communities. Agriculture 

has proven to be one of the most sustainable sectors for 

regional SMMEs provided there is a market for them to supply 

their fresh produce, and the NSNP creates that market space. 

We are also looking at how best we can ensure 100% local 

supply whilst ensuring compliance. 

Contact Details: Physical Address: Sangweni Tourism Centre, Cnr. Link Road & Ballito Drive, Ballito, KZN, SA 4420 | Postal 

Address: PO Box 593 Ballito 4420 | Tel: +27 (0) 32 946 1256 | Email: info@enterpriseilembe.co.za | 

Web: www.enterpriseilembe.co.za 


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Funding the future 

A call to invest in the University of Venda 

PROFILE 

Many South African universities are considered 

among the best in the world. However, there 

are also many issues that are hidden below the 

surface that have come to the fore in recent years with 

massive protests at most universities. Most of these protests 

have been around funding for students who cannot afford 

university fees. 

In order to find out more about the funding that universities 

require and how these crucial entities within our society 

go about creating their own finance, we sat down with the 

Chief Executive Officer of Univen Innovative Group Company 

(UIGC), Dr John Mudau. 

UIGC is 100% owned by the University of Venda with the 

sole purpose of providing the university with funding. The 

University of Venda is the only shareholder within the UIGC. 

Mudau’s main focus as CEO is to ensure that the company 

is financially sustainable and achieves its mandate, as handed 

down by the university. 

“We have to generate enough revenue which we can then 

hand over to the university so that they can use to support 

their main program, especially the core business of the 

university, which is teaching, learning and community engagements,” 

says Mudau. 

The task is more complicated than it sounds. Having been 

CEO for just over four years, Mudau is acutely aware of the 

challenges that UIGC faces. 

”I think the biggest challenge at this stage is that we are 

not in a position to provide enough money to the university, 

for a number of reasons why that is the case. Number one is 

because the company is still pretty new; we only started in 

2010. 

“The second challenge is that as a company we are in the 

process of trying to make sure that we raise enough revenue. 

We have established entities, which are subsidiaries of the 

company. We have a subsidiary called UIGC Travel, which is 

a travel agency that provides a one-stop facility for booking 

travel arrangements and accommodations. We also have a 

company that deals with security, providing guards, and we 

have an entity that deals with landscaping, cleaning services 

and gardening. We also have an entity that deals with commercial 

farming, which is called the UIGC Barter Farm, producing 

macadamia nuts, bananas, avocados. Lastly, we have a division 

that deals with training,” explains Mudau. 

While these new, smaller companies have been a welcome 

addition to the UIGC, they were created for a longer term goal; 

it would be naive to start expecting financial returns right 

away. On the contrary, these companies still need support from 

the UIGC. However, in the long term, Mudau is confident that 

these companies will bring their own rewards. 

Mudau also makes it very clear that, as a commercial 

entity, UIGC would love to offer alumni from the University 

of Venda the opportunity to invest in their business. However, 

he believes they have yet to get their message out there in a 

strong enough way. 

Due to the fact that universities in South Africa are public 

enterprises, they are not allowed to do fundraising exercises; 


however, Mudau believes that this innovation where the university 

is the sole shareholder in an organisation is the way to 

go. All the major universities within South Africa have a private 

entity and it helps the universities a lot with regards to funding. 

“When you have a vehicle like this it becomes very easy 

for a university to get into a commercial transaction without 

compromising the university's integrity of the university and 

without changing its focus: the university cannot be dealing 

with what is happening in the market; they are interested in 

research, teaching and of course learning, correctly so. If you 

leave them to focus on these business areas they will not do 

well. That is where special-purpose commercial entities such 

as UIGC come into their own,” says Mudau. 

The long-term vision that Mudau has put in place for UIGC 

looks positive. He has the goals he’d like to achieve, and 

should these goals be achieved it will have a far-reaching effect 

on those who cannot afford university fees. 

“One very critical commitment we have made to the university 

is that in the next three years we want to provide 

enough money to the university to fund 50% of the students 

enrolled there, both in terms of tuition and learnership, and 

we made this commitment very mindful of the landscape of 

our economy today, but we believe that once we stabilise our 

smaller entities, which will be in the next 18 months, we will 

start getting returns that will assist us in funding students of 

the University of Venda. In our view this is going to promote 

access to quality higher education, and this is going to be done 

regardless of students' background. 

“We don’t want to look at the income of those we are 

funding; over the next three years we just want to fund 50% of 

the students coming into the University of Venda, regardless 

of their background. 

“Furthermore, over the next five years the UIGC would 

also like to provide the finance for the university to provide 

on-campus accommodation for at least 5 000 students,” 

says Mudau. 

The majority of students at the University of Venda are 

from poor households. Government has already decided that 

households of that earn less than R 300 000 qualify for free 

education, but the middle of the range still exists, namely 

those households that earn perhaps R 350 000 per annum but 

still can’t afford to send their child to university, and definitely 

not a second child. 

Furthermore, saysd Mudau, not even households that earn 

R 500 000 per annum are likely to be able to afford the fees. 

Perhaps they can for one child, but definitely not two; this is 

where the UIGC wants to direct its funds. 

In closing, Mudau called on the private sector to open their 

doors. It's not about asking for donations: if companies can 

“come and own 1%, 2% or 3% of our massive organisation, we 

can find the ways to fund that small percentage, but then we 

are in the private sector which will allow us to use our expertise 

to further fund the students at the University of Venda,” 

concludes Mudau. 

PROFILE 


DIVERSITY STRATEGY 

Embracing 

true value 

Mastering diversity strategies that work 

Despite the challenges that come 

with managing and getting the 

best out of and for diverse teams, 

ways to handle diversity successfully 

have been identified, tested and shown to 

work. Specific skills and knowledge are 

required, but they are usually not what 

one would expect. 

Too often, if employees are trained on 

diversity, the focus is on their peers’ 

culture, and even mundane things like 

what type of foods certain groups might 

prefer. This may have some value, but 

in a very limited sense. Even teaching 

staff to greet one another in their home 

language may help, but again, it will not 

remove or even begin to address those 

deep-seated prejudices preventing us 

from really making progress. 

Much more in-depth and focused interventions 

are required to get people to 

understand, acknowledge, and embrace 

the true value of diversity. After this initial 

process of improving interpersonal 

relationships begins, employees can 

then be guided in the creation of a conducive 

workplace environment for the 

advantages of diversity to be realised. 

One major advantage of maintaining 

a sound diversity structure in the 

workplace is that it ensures we draw 

all types of customers to our business. 

There are many other advantages, all 

of which can be taught along with the 

means to implement them. 

To begin teaching the necessary skills, 

we need to start on the individual 

level, introducing powerful tools for 

the employee to use in interrogating 

their own views and getting to the 

heart of their own prejudices, fears 

and worries. Once these have been 

acknowledged in the safe and carefully 

facilitated training space, work begins 

on implementing interpersonal diversity 

strategies that are effective in the 

South African environment. 

A diversity expert should tailor diversity 

strategies for the target group and 

seek to address the specific problems 

that are cropping up and preventing the 

company or team from performing optimally. 

There are a number of ways that 

have proved to work, but again, they are 

not the traditional methods one expects, 

and they require a skilled facilitator or 

trainer to implement. 

One effective way of managing 

diversity and maximising its value is 


DIVERSITY STRATEGY 

to form task forces or project teams to address 

obstacles related to diversity and also to find 

ways to increase equitable representation in 

the company. This method has been tested and 

implemented with great success in companies 

such as IBM and Deloitte. IBM, in particular, has 

used this method for decades with wonderful 

results for employee diversity. 

In the training space, employees and managers 

are taught how to form and operate these 

teams through team-building exercises. A diversity 

task force can be formed from those present 

at a training session, and trainees can begin 

with some of the planning involved under the 

guidance of the facilitator. 

Corporate diversity task forces can be 

trained to promote social accountability, to 

address recruitment issues, and to monitor the 

progress of women, black people, those with 

disabilities and other groups that are often 

side-lined to ensure they are well treated and 

retained, among many other diversity-related 

interventions. 

As an example of what team-building and 

task forces can do, Deloitte, through these same 

interventions, found that transparency in decision-making 

is a key way to get positive results 

for diversity goals. Without first building a cohesive 

team and setting them to work on diversity 

challenges, Deloitte would not have discovered 

how important this factor is to its over 250 000 

employees. The value of transparency has thus 

emerged as a critical input for diversity success. 

IBM also launched hugely successful diversity 

task forces in the 1990s. They were so effective 

that these task forces are a pillar of the company’s 

HR strategy to this day. Some advantages for IBM 

included that the number of female executives 

worldwide increased by 370%; ethnic minorities 

by 233%; LGBT executives rose by 733%; and 

those with disabilities more than tripled (David 

Thomas, HBR). 

We can thus see the incredible value that 

team-building and dedicated task teams can 

achieve. It is these types of diversity initiatives 

which have kept progressive companies 

such as IBM and Deloitte going strong through 

the decades. 

If you want the same for your business and 

your team, train them for the success they 

deserve. Diversity is a wonderful resource 

which, if nurtured through training and teambuilding, 

will bring excellent returns for you the 

individual, for communities and companies. 

Devan Moonsamy, CEO, ICHAF Training Institute 


NATIONAL INVESTMENT DRIVE 

Funding secured 

R200 billion investment for KZN economy 

More than R200 billion will 

be invested in the economy 

of KwaZulu-Natal in the 

next few years, says the MEC for 

Economic Development, Tourism and 

Environmental Affairs Sihle Zikalala. 

The MEC said the province had packaged 

a list of 25 projects, worth more 

than R200 billion, as part of its contribution 

to the national investment 

drive launched by President Cyril 

Ramaphosa recently. 

The opportunities cover a range of 

sectors from agro-processing, film and 

media productions, manufacturing, 

logistics, medical, property development 

and tourism. 

“We are excited that the investment 

opportunities that we have unveiled will 

create 800 000 temporary jobs during 

the construction and development 

phase of the projects and a further 410 

000 permanent jobs in the short to long 

term,” Zikalala said. 

Addressing the investment seminar in 

Durban on Friday 12 October, the MEC 

said the projects would benefit people in 

all corners of KwaZulu-Natal. 

“All these projects and development 

sites have already been secured and 

are in the process of implementation, 

including the acquisition of funding and 

undertaking of feasibility studies,” he said. 

The investments are spread across the 

province including areas in KwaDukuza, 

eThekwini, Mandeni, uMuziwabantu and 

uMhlathuze municipalities. 

KwaZulu-Natal will conduct an annual 

review of the opportunities to assess 

progress on implementation, as well as 

add on new developments. 

The list of investment opportunities 

were handed over to Phumzile 

Langeni, a Special Investment Envoy 

to the President. 

The opportunities will be combined 

with those of other provinces, which will 

help South Africa achieve its target of 

securing US$100 billion of new investments 

over five years. 

Zikalala said the list of investment 

opportunities had been compiled at a 

time when there is growing enthusiasm 

for local and international companies to 

invest in the province. 

KwaZulu-Natal’s two special economic 

zones have attracted billions of rand 

worth of investments and are expected 

to create hundreds of jobs. 

“The Dube Trade Port is commencing 

with Phase Two, which will create more 

industrial space for investors as Phase 

One is already fully occupied. At the 

same time, the Richards Bay Industrial 

Development Zone is playing a crucial 

role in investment attraction. 

“We commend the province for 

responding positively to the President’s 

call to put more efforts in attracting 

investments so that we can grow 

the economy and create jobs. We are 

happy that the projects that have been 

unveiled today will create thousands of 

jobs,” he said. 

Already in July, Zikalala welcomed 

Sappi Limited’s enormous R7 billion 

planned investments that are expected 

to have a massive positive impact on the 

provincial economy. 

The investments include a R2.7 billion 

capacity expansion project and a 

planned R5 billion over five years in 

various continuous improvement initiatives 

and upgrade projects. 

Zikalala said it was heartening that 

more and more business organisations 

such as Sappi continue to express, 

through actions, their commitment and 

loyalty to the provincial economy. 

Zikalala said the massive investments 

currently being poured into 

different parts of KwaZulu-Natal by 

big conglomerates are a major vote of 

confidence in the province’s resolve to 

grow its economy for the benefit of all 

its citizens. 

According to Zikalala, the increased 

and expanded investment reaffirms 

Sappi’s commitment to KwaZulu-Natal. 

“Major investments have also taken 

place in our special economic zones in 

the recent past. We will continue to sell 

our province as a destination for quality 

investments. Working with the central 

government, we will also continue to 

create an environment which is conducive 

for businesses to thrive,” Zikalala said. 

The provincial government also commended 

Sappi for its recently launched 

Skills Centre near Saiccor Mill, which 

has created training and up skilling 

opportunities for the workforce and for 

local youth. 

Zikalala said that KwaZulu-Natal 

would engage other conglomerates to 

invest more on skills development to 

assist in reducing unemployment. 

The provincial government has been 

assured that Sappi would work swiftly 

and seamlessly to obtain necessary 

authorisations to make the company’s 

planned investment a reality. 

Zikalala also said that the province 

is supportive of President Cyril 

Ramaphosa’s efforts to spur the country 

towards the growth trajectory under the 

banner of Operation Thuma Mina which 

encourages corporate South Africa to 

begin to invest in the economy. 

sanews.gov.za 


DYREX 

EMPOWERED. EMPOWERING 

Dyrex is a Mining Construction Company situated in Kriel, Mpumalanga Province. 

It is Black Female Owned and A Level 2BBBEE contributor. 

Our Vision To be the No1 company in providing quality service1 value and excellence to all our clients. 

Our Mission To be excellent, professional1 compliant and reliable at all times. 

Our Values Integrity, Transparency, Empowering and Service Delivery 

OUR SERVICES 

Mining Contractor 

Concrete Work 

Stone-dust Barriers & Sampling 

Installation of: 

• Underground and Overland Conveyor 

Structures 

• Slings 

• Cable Anchors 

Reclaiming of: 

• Air Crossings 

• Underground Stores 

• Underground Cables 

• Underground Belt Structure 

Building of: 

• Ventilation walls 

• Structures underground 

• Mat Packs 

• Conveyor Belt Structures 

• Brattice type Walls Unerground 

Drilling and Blasting of Dykes 

Sealing of Boreholes 

Roof support: 

• installation of Cable Anchors 

• Oslo Straps 

• Roof Bolts 

Service hire: 

• Miners 

• Artisans 

• General Labourers 

• Aides 

Sweeping ofTravelling Ways 

Conveyor Belt Cleaning and Operating 

Director: 

Miss Nomvuyo Ketiso 

Contact 

Nomvuyo Ketiso Director 

Email: nomvuyoketiso@yahoo.com • Cell: 076 872 8081 

Offi ce: 017 648 2323 • FAX Number: 086 464 9029 

Jacques Herbst Site Manager 

Cell: 082 774 9306 

Berry Makhubela Operations Manager 

Email: berry.dyrex @yahoo.com • Cell: 082 073 2444 

Denise Botha Offi ce Administrator 

Email: denise.dyrex@yahoo.co.za 

Offi ce: 017 648 2323 

Sanifa Zunguza 

Email: sanifa.dyrex@yahoo.com 

Tel: 017 648 2323 • Cell: 083 437 1080

Conference & Exhibition: 13-15 November 2018 

Cape Town International Convention Centre 

South Africa 

THE PLACE TO SHAPE 

AFRICA’S DIGITAL FUTURE 

THE LARGEST TELECOMS, MEDIA AND TECHNOLOGY EVENT IN AFRICA. 

EXPECT 14,000 ATTENDEES, 400 EXHIBITORS AND 450 VISIONARY 

SPEAKERS FROM ACROSS THE ENTIRE DIGITAL ECOSYSTEM. 

The Technology Arena: 

The Technology Arena returns for 2018, an entire exhibition 

hall dedicated to tech innovation and Africa’s journey 

towards the 4th industrial revolution. Visit hundreds of 

exhibitors, attend visionary presentations, and try out ground 

breaking tech in our ‘demo pods’. 

Hear visionary insights on future tech trends at AfricaCom 2020: 

The AfricaCom 2020 stage is dedicated to accelerating 

Africa’s digital transformation, and will feature visionary 

presentations on AI, IoT, smart cities, blockchain, the digital 

skills gap and much more. 

New to AfricaCom for 2018: 

For the first time ever leading global events 

AI Summit and IoT World Africa come to 

AfricaCom! Learn about the implementation 

of game-changing technologies at the 

forefront of digital transformation that boost 

productivity, unlock new opportunities and 

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opportunity for African enterprises. 

To find out more and to register, visit tmt.knect365.com/africacom 

KNectAfrica #africacom Africa Telecoms, ICT & Media Group knectafrica Connecting Africa

Opportunity Issue 88 - Sept-Oct 2018

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