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Opportunity Issue 95

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Quarterly journal for business and industry in South Africa<br />

www.opportunityonline.co.za<br />

NOV/DEC 2020 / JAN 2021 • ISSUE <strong>95</strong><br />

GOVERNMENT,<br />

LABOUR, BUSINESS<br />

Stop, listen and hear<br />

our laureate leaders:<br />

PUT THE NATION’S<br />

INTEREST FIRST<br />

Dr Mamphela Ramphele<br />

Busisiwe Mavuso


LEADING<br />

THE FLEET<br />

PROFILE<br />

Strategically located on the West Coast of Africa in Walvis Bay, Namibia,<br />

Namdock is a leader in the West African ship repair market and offshore oil<br />

and gas sector, having gained global recognition for its extensive dry dock<br />

capacities and exceptional client service – even in the face of a global pandemic.<br />

Namdock, or EBH Namibia as it was formerly<br />

known, was founded in 2006 as a joint venture<br />

with the Namibian government, represented<br />

by the Namibian Ports Authority (NAMPORT).<br />

Latterly, a shareholding was taken by a South<br />

African company. In 2018, the South African company<br />

relinquished all shareholding in the former EBH Namibia<br />

when the foreign shareholding was transferred to the<br />

EBH Consortium, a group comprised of prominent<br />

Namibian business leaders. As a result, the organisation<br />

became truly Namibian, with its shareholding held<br />

entirely by NAMPORT and the EBH Consortium.<br />

To reflect this new reality, it was decided to rebrand the<br />

company as Namdock, a name that truly reflects its wholly<br />

Namibian composition. With effect from 31 August 2019,<br />

EBH Namibia changed its name to the Namibia Drydock<br />

and Ship Repair Company Pty Ltd (Namdock). Despite<br />

a drop in the global oil price and its negative knock-on<br />

effect on the offshore repair industry between 2015 and<br />

2019, a still-volatile global oil price, and the knockon<br />

effect of the global Covid-19 pandemic in 2020,<br />

Namdock and its three floating docks continue to<br />

attract local and international clients. However,<br />

there is more to Namdock’s success than a mere<br />

economic recovery.<br />

service and efficiency; but also our inherently strong<br />

relationship with our people and pride in our country,”<br />

says Namdock’s Acting CEO Heritha Nankole Muyoba.<br />

As such, Namdock enjoys the full support of its<br />

majority shareholder, the Namibian Ports Authority<br />

and, by extension, that of the Namibian government. By<br />

reciprocation, Namdock fully supports Namibia’s Vision<br />

2030 and the country’s sustained industrialisation drive.<br />

The next major advantage that Namdock possesses is<br />

that it is situated in Namibia. This country stands out on<br />

the African continent as having a very stable political<br />

dispensation, first-rate and efficiently functioning<br />

infrastructure and a customs and logistics authority that<br />

is user-friendly, corruption-free and swift in operation.<br />

TOP DOCK FACILITIES<br />

It is reported that while there are many ship repair<br />

yards along the West Coast of Africa, in the main, should<br />

a major component be needed, importing such an item<br />

___ __<br />

Strategically situated<br />

in Walvis Bay, Namibia,<br />

the company prides<br />

itself on its on-time<br />

delivery and track<br />

record of consistency<br />

and reliability, making<br />

Namdock a trusted<br />

brand within the<br />

international maritime<br />

sector. A projectorientated<br />

company,<br />

Namdock offers<br />

holistic solutions to<br />

meet all its clients’<br />

requirements.<br />

NAMDOCK’S STRENGTH IS LOCAL<br />

As a nation, Namibia is fiercely proud of its<br />

indepen-dence, and is also strongly focused<br />

on driving economic self-sufficiency and<br />

industrialisation. “We have therefore adopted the<br />

slogan ‘Our Strength Is Local’, which not only<br />

encapsulates our operational ethos of excellence,<br />

Aerial view of Namdock’s<br />

three floating docks.


and having it delivered to the dockside at one of these<br />

yards could take a month or two. By contrast, Namdock,<br />

with the support of the country’s enlightened customs and<br />

logistics system, is able to have similar components on the<br />

dockside within three to four days.<br />

In fact, with three fully operating and well-maintained<br />

floating dry docks, Namdock has the capability to repair<br />

and maintain vessels up to a size that would include<br />

approximately 70% of the global shipping fleet. In addition,<br />

Namdock has reduced its average turnaround time for<br />

ship repairs from 16 days to an extremely impressive 12-<br />

day average.<br />

Namdock’s own facilities include three well-maintained<br />

floating dry docks, seven cranes as well as fully-equipped<br />

workshops for carrying out all aspects of marine repair<br />

and maintenance. As Namdock is part of Namport, which<br />

oversees the port of Walvis Bay, this allows Namdock<br />

access to secure berthing space with the quayside depth<br />

of 12m. In addition, Namdock has access to Namport’s<br />

synchro lift, a facility that can accommodate vessels up to<br />

2 000 tons displacement, 80m in length and 12m in width<br />

overall. The synchro lift area has four 80m repair quays of<br />

8m draft which Namdock uses for alongside-pier repairs<br />

and maintenance. The large natural anchorage at Walvis<br />

Bay has a 14m depth.<br />

SERVICES AND TECHNICAL SKILLS<br />

The removal of marine growth and re-coating of ships’<br />

hulls is a key component of Namdock’s services. This not<br />

only preserves the value of the vessel but also, by reducing<br />

drag in the water, lowers its operating costs.<br />

Namdock employs highly skilled trade professionals<br />

who are dedicated and experienced in a wide variety of<br />

trades, from rigging, piping and coating to fabrication,<br />

carpentry, electrical and propulsion. Namdock’s trade<br />

professionals are well trained to international standards.<br />

In addition to Namdock’s fully equipped workshops<br />

where all the above services can be carried out, the<br />

company constantly works with a range of local highly<br />

experienced and trusted subcontractors and suppliers,<br />

many of the latter from renowned international OEMs.<br />

Clients can therefore access every possible ship repair<br />

service that they might need from Namdock, conducted<br />

in a range of extensive and well-equipped dedicated<br />

fabrication, propulsion, mechanical, electrical, valve and<br />

carpentry workshops, to provide repair and maintenance<br />

services for all potential requirements.<br />

‘SHIPSHAPE’ SAFETY<br />

At Namdock, safety is always the prime and abiding<br />

consideration. For this reason, safety awareness is integral<br />

to Namdock’s management ethos, and forms part of its<br />

day-to-day operations. As such, the company constantly<br />

focuses on creating and enforcing safe and responsible<br />

working conditions for all employees, suppliers and clients<br />

through its safety processes, procedures, certifications<br />

and ongoing training.<br />

The Namdock team were charged with not only restoring the SKD Jaya<br />

to seaworthy condition, but also ensuring that it was safe and fully<br />

compliant with maritime legislation. This project involved the reactivation<br />

of the SKD Jaya rig, a semi-submersible tender assisted drilling unit.<br />

MARINE AND LAND-BASED DIVERSIFICATION<br />

Namdock is currently in the process of diversifying<br />

both in the maritime field and in the land-based heavy<br />

engineering arena. In terms of its marine services, the<br />

company has entered into the field of maintaining and<br />

repairing submersibles and remotely-operated vehicles.<br />

In terms of land-based heavy engineering, Namdock,<br />

as Namibia’s largest engineering company, has the<br />

facilities, design, project management and fabrication<br />

skills to tackle projects of any magnitude.<br />

“Marine engineering has to adhere to exceptionally<br />

high levels of competency, and we would be pleased<br />

to share this skill level with, for example, the coastal<br />

mining industry in Namibia and our neighbouring<br />

countries,” continues Nankole Muyoba.<br />

IN CONCLUSION<br />

“To sum up, at Namdock, we are globally competitive<br />

while also proudly Namibian,” states Nankole Muyoba.<br />

“Our company is a prized national asset, wholly-owned<br />

by all-Namibian entities. With this in mind, Namdock<br />

is sailing ‘full steam ahead’, and navigating a proactive<br />

voyage forward which will benefit not only our valued<br />

clients, our company and our staff, but also the people of<br />

Walvis Bay, and Namibia as a whole,” she concludes.<br />

___ __<br />

Namdock is a highly<br />

successful smart<br />

partnership between<br />

the Namibian<br />

government and<br />

the private sector<br />

and provides the<br />

international shipping<br />

and local industry<br />

with a full-house<br />

capacity in all aspects<br />

of ship repair and<br />

land-based heavy<br />

engineering.<br />

Team work in action! Namdock's take on the popular Jerusalema dance 2020.<br />

PROFILE


Contents<br />

ISSUE <strong>95</strong> | NOV/DEC 2020 / JAN 2021<br />

06<br />

09<br />

10<br />

12<br />

14<br />

18<br />

22<br />

26<br />

30<br />

SACCI FOREWORD<br />

How will South Africa survive this year?<br />

NEWS & SNIPPETS<br />

What has been and what’s to come<br />

THE START OF SOMETHING BIG<br />

If the South African gas market is to take off and thrive,<br />

significant drilling has to take place, says the new CEO<br />

of Petroleum Agency SA, Dr Phindili Masangane<br />

REFINING 2021: WHO WILL BE IN THE GAME<br />

How do oil refineries survive and sustain profitability<br />

in a volatile market?<br />

HEAL OUR PEOPLE, HEAL OUR LAND<br />

Busisiwe Mavuso and Dr Mamphela Ramphele<br />

share their perceptions on how to transform South Africa<br />

TWO TRUTHS ABOUT AFRICA’S AGRICULTURE<br />

Transforming the agricultural value chain is central to any progress in Africa<br />

OPERATIONAL EXCELLENCE IN INFORMATION SECURITY MANAGEMENT<br />

What are organisations doing to ensure that they are securing their data?<br />

HOW TO MAKE PUBLIC TRANSPORT AN ATTRACTIVE OPTION IN YOUR CITY<br />

Introducing the factors needed to realise public transport’s full potential<br />

SURVIVAL STRATEGY<br />

Forward-thinking engineering and construction companies are weathering the<br />

Covid-19 storm by rethinking their strategic choices<br />

10<br />

22<br />

14<br />

26<br />

2 | www.opportunityonline.co.za


LEADERS IN CHEMICAL SUPPLY<br />

INDUSTRIAL CHEMICALS<br />

ChemiCorp is one of the leading raw chemical suppliers<br />

in South Africa.<br />

MINING CHEMICALS<br />

Chemicorp understands the urgency at which mines<br />

operate. We ensure we have stock available at all times.<br />

FOOD AND BEVERAGE INDUSTRY<br />

We supply chemicals of the highest quality suitable for the<br />

manufacture of food products for human consumption.<br />

PAINT INDUSTRY<br />

ChemiCorp is a one-stop-shop for all your architectural<br />

paint manufacturers.<br />

WATER TREATMENT CHEMICALS<br />

ChemiCorp is well-positioned in the water treatment<br />

business and technically geared to tailor-make solutions<br />

to any water treatment requirements.<br />

www.chemicorp.co.za<br />

AGRICULTURAL PRODUCTS<br />

Our agricultural product department is one of the most<br />

innovative. This is mainly due to our partnership with Dagutat<br />

Science, a biological product manufacturer.


EDITOR'S NOTE<br />

Time for<br />

transformation<br />

Covid-19 has exposed just how fractured South Africa’s democracy is,<br />

and how unequal we are as a society. We need rational, pragmatic<br />

choices from government, labour and business, says Busisiwe<br />

Mavuso, CEO of Business Leadership South Africa, on page 14. And<br />

so, in this issue of <strong>Opportunity</strong> magazine, we set out to offer practical<br />

advice in the sectors that the pandemic has impacted most on.<br />

The conventional wisdom of vertical integration as the ideal and sustainable<br />

model for oil refiners is being challenged. Choosing the right operating<br />

model and the required level of integration across the value chain will be<br />

crucial for improving margins and sustaining profitability in the volatile oil<br />

and gas market. Read more on page 12.<br />

If the South African gas market is to take off and thrive, significant<br />

drilling has to take place, says the new CEO of Petroleum Agency SA, Dr<br />

Phindili Masangane. A major discovery has been made at a site south-east<br />

of Mossel Bay called Brulpadda. Dr Masangane says, “The recent discovery<br />

by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant<br />

step in that direction.”<br />

Agricultural transformation in Africa must build social cohesion, create<br />

beneficial continental trade, provide a platform for global exports and, most<br />

importantly, help generate millions of jobs while pulling subsistence farmers<br />

out of poverty (page 18). <strong>Opportunity</strong> also looks at how we can improve<br />

public transport (page 26) and the engineering and constructions sectors<br />

(page 30).<br />

We all know that it is time to transform South Africa; perhaps Dr Mamphela<br />

Ramphele’s words (page 16) offer a place of where to begin: “Covid-19 has<br />

created an urgent imperative to transform our inequitable society into one<br />

governed by the values of ubuntu – that would help us understand that there<br />

is no ‘I’ without ‘We’. An ubuntu value-based society, with citizens that are<br />

liberated from the impositions of inferiority and superiority complexes, is<br />

urgently needed. Such a society would be driven by healthy relationships with<br />

self, family, community and wider society. Leadership that is self-liberated<br />

would emerge to lead the rebuilding of our broken public institutions in line<br />

with ubuntu values and the prescriptions of our Constitution.”<br />

www.opportunityonline.co.za<br />

Editor: Alexis Knipe<br />

Publishing director: Chris Whales<br />

Managing director: Clive During<br />

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the copyright owner. The opinions expressed are not necessarily those of<br />

<strong>Opportunity</strong>, nor the publisher, none of whom accept liability of any nature<br />

arising out of, or in connection with, the contents of this book. The publishers<br />

would like to express thanks to those who support this publication by their<br />

submission of articles and with their advertising. All rights reserved.<br />

4 | www.opportunityonline.co.za


TEXTILES<br />

The beauty<br />

of mohair<br />

With more than 30 years of experience in the South African mohair and textile industry,<br />

South African Mohair Industries Limited (SAMIL) Natural Fibres has a fully integrated<br />

value chain including farming, processing, trading, yarn spinning and dyeing.<br />

<strong>Opportunity</strong> sat down with Michael Brosnahan,<br />

the CEO of SAMIL, to find out more about the<br />

mohair and textile industry.<br />

How do you view the short-, medium- and<br />

long-term future for SAMIL and the mohair industry?<br />

SAMIL and the mohair industry has suffered – and<br />

continues to suffer in the short term – depressed trading<br />

conditions due to Covid-19, but believe me, the mohair<br />

industry is as strong and resilient as both the fibre itself<br />

and the brave, industrious farmers who produce this<br />

magnificent fibre.<br />

What are the biggest challenges caused by Covid-19?<br />

In my view, the biggest challenges caused by Covid-19<br />

are related to ensuring the health and safety of all our<br />

employees while endeavouring to keep our business<br />

going. We have put in place, sadly at not too small a<br />

cost, all the measures required to keep our people as<br />

safe as practically possible while we continue to supply<br />

mohair to the world.<br />

Have any opportunities emerged from Covid-19?<br />

There are always opportunities, if you look hard<br />

enough. The opportunities for SAMIL came through the<br />

lockdown, as unbelievable as that may sound. During<br />

the lockdown, crafters and knitters globally took refuge<br />

in their art, some of them returning to their passion due<br />

to the extra time on their hands. The demand for hand<br />

knitting and crochet yarns increased dramatically, with<br />

the spin-off, please forgive the pun, being that many<br />

of the knitters and crafters have rediscovered their<br />

passion and now make time in their busy schedules to<br />

continue enjoying their hobby.<br />

What was required for SAMIL to become Responsible<br />

Mohair Standard (RMS) certified?<br />

SAMIL is well structured and organised, so the upgrade<br />

to RMS certified was relatively painless. This was due<br />

mainly to the dedication of my staff, in particular Evert<br />

Vermeulen, the head of Mohair Tops Trading Division who<br />

spearheaded the task team on implementation. The detail<br />

of what is required to become certified is contained in<br />

the RMS guidelines available from the Textile Exchange.<br />

What value does the RMS accreditation provide for<br />

mohair suppliers, textile manufacturers, retailers<br />

and consumers?<br />

The RMS accreditation is critical to all associated<br />

with the mohair value chain. The requirement for the<br />

certification is driven by the new environmentally<br />

consciousness consumer, who makes purchase<br />

decisions not only on price but moreover on their<br />

understanding of the ethicality of the manufacturing<br />

process. They want to know that the goods they intend<br />

to purchase have not harmed the environment in any<br />

way. This concern extends further to the welfare of<br />

the people producing the items and, in our case, the<br />

treatment of the animals who have produced the raw<br />

material for the goods.<br />

_____ ___ __ _ _<br />

The requirement for<br />

the RMS certification<br />

is driven by the new<br />

environmentally<br />

consciousness consumer<br />

___ __ __ ___ __ _ _<br />

What are the prospects for RMS?<br />

In my view, the RMS is not a fad, it is reality and it is<br />

here to stay. Very soon, mohair that is not produced by<br />

an RMS-accredited farmer will no longer be marketable.<br />

Today’s young consumer is not prepared to purchase<br />

goods that impact the world environment and, I am<br />

sure, they will instil this value in their children.<br />

___ __<br />

Michael Brosnahan,<br />

CEO, SAMIL<br />

____ __<br />

Mohair is a renewable<br />

natural resource<br />

that contributes to<br />

the Karoo’s longterm<br />

prosperity<br />

www.opportunityonline.co.za | 5


FOREWORD<br />

We don’t know,<br />

what we<br />

don’t know<br />

How does South Africa come out of the three evils of a recession,<br />

a ratings agency downgrade and the Covid-19 pandemic lockdown?<br />

As we ended 2019, the business community<br />

had laid plans for the New Year ahead, not<br />

knowing what was coming. Covid-19 laid bare<br />

our forecasting and plans for the road ahead.<br />

Within months South Africa would<br />

experience an unprecedented loss of jobs, businesses<br />

closing and austerity measures that cut to the very bone<br />

of economic activity.<br />

Social distancing became a norm, wearing masks and<br />

sanitising surfaces and hands is now a legal obligation<br />

in public spaces. Who would have thought this was<br />

coming just months earlier?<br />

Over the past eight months, SACCI has witnessed the<br />

damage within its own ranks. Our Trade Conditions<br />

Survey, which has for many years served as a barometer<br />

of the business community, lost some of the participants<br />

to the severe economic climate. According to the latest<br />

Quarterly Labour Force Survey Quarter 2 released by<br />

Statistics South Africa on 29 September 2020, the South<br />

African economy shed 2,2-million jobs.<br />

Against this background, SACCI had to do something<br />

to turn things around. We cannot rely on government to<br />

pull the country out of this malaise so the SACCI Board<br />

gave a directive that SACCI must filter this down to<br />

grassroots level by implementing programmes of action<br />

to assist our business sectors on a trajectory towards<br />

economic growth and sustainability.<br />

___ __ ___ __ _ _<br />

We cannot rely on<br />

government to pull<br />

the country out of<br />

this malaise so the<br />

SACCI Board gave a<br />

directive that SACCI<br />

must filter this down<br />

to grassroots level<br />

___ __ ___ __ _ _<br />

6 | www.opportunityonline.co.za


FOREWORD<br />

While we know that this is no easy task ahead, SACCI<br />

decided that it is the only way in assisting government<br />

to bring the economy back on stream and create jobs.<br />

The SACCI Board decided that 11 work streams<br />

should be created. The three fundamental areas raised<br />

in the formulation of an action plan must be centred on:<br />

Inclusivity<br />

Innovation<br />

Collaboration<br />

Significant among these action programmes are<br />

small business, mining, construction, manufacturing<br />

and agriculture.<br />

The Terms of References were developed, and<br />

support functions engineered from within SACCI’s own<br />

membership and the SACCI team.<br />

Leading experts from various business sectors,<br />

institutions and academia have volunteered to give of<br />

their time and expertise to help the country get back<br />

on its feet.<br />

This is a giant task but not impossible to achieve<br />

as the commitment is solid, and the involvement has<br />

been forthcoming as the people involved see this as<br />

impacting at a granular level and hence they are keen<br />

to participate.<br />

▲ ▲ ▲<br />

___ ___ __ _ _<br />

The road ahead will<br />

take us all on a path<br />

where hard decisions<br />

will need to be made<br />

___ __ ___ __ _ _<br />

The directive is that milestones<br />

will be set and reviewed regularly<br />

to track progress and ensure that<br />

the various workstreams remain<br />

on track.<br />

The road ahead will take us all<br />

on a path where hard decisions<br />

will need to be made. But, with<br />

the quality of people committed<br />

to this project, and the gravitas<br />

that these people carry, we are<br />

confident that changes will be<br />

made to stimulate the economy<br />

and our business community will<br />

work together with government,<br />

labour and civil society.<br />

These partnerships will ensure<br />

that the country’s economy grows<br />

from a solid platform and will be more resilient to the<br />

shocks of the past and future. By charting a roadmap,<br />

we will ensure a positive path, and produce gains in<br />

the sectors affected.<br />

SACCI further believes that this will build the<br />

confidence in the country to the extent that investors<br />

will review their strategies and return to South Africa<br />

as an investment destination.<br />

We conclude with an extension of our encouragement<br />

to government to remain firm in its commitment to root<br />

out and deal with corruption that has blighted our public<br />

sector and our business community. SACCI believes<br />

these workstreams have the opportunity to raise the<br />

hopes of all South Africans for a brighter future and<br />

together we can turn our economy around.<br />

Alan Mukoki,<br />

SACCI CEO<br />

www.opportunityonline.co.za | 7


TRADE<br />

Unlocking trade and transport<br />

facilitation bottlenecks<br />

Botswana, Namibia, South Africa and beyond.<br />

The governments of Botswana, Namibia and<br />

South Africa, recognising the need to eradicate<br />

poverty and place their countries on the path<br />

of sustainable economic development and<br />

growth, established the Trans Kalahari Corridor<br />

Management Committee (TKCMC). This move was<br />

influenced by the need to achieve the transport and<br />

trade facilitation objectives as well as deeper regional<br />

integration as espoused in the SACU, SADC and AUDA<br />

– NEPAD Agenda. In 2007, the Trans Kalahari Corridor<br />

Secretariat (TKCS) was established to coordinate the<br />

functions and decisions taken by the TKCMC. South<br />

Africa is the current chair of the TKCMC.<br />

The objectives of the TKCMC are to simplify crossborder<br />

transactions and customs operations along the<br />

Corridor; facilitate the movement of goods and persons<br />

on the TKC by simplifying and harmonising the<br />

requirements and controls that govern the movement of<br />

goods and persons with a view to reducing transportation<br />

costs and transit times; integrate the spatial, economic<br />

and transportation planning for the contracting<br />

parties; promote deeper integration by harmonisation<br />

of conflicting regulations and policies of the three<br />

countries in line with the SADC Regional Indicative<br />

Strategic Development Plan (RISDP); integration of<br />

trade, transport, logistics and travel systems of the three<br />

countries with the objective of providing quality services<br />

at minimal costs, thereby increasing competitiveness of<br />

the SADC and SACU region.<br />

In 2016, a new strategic plan was developed with<br />

a goal to have the TKCMC be the leading corridor in<br />

trade facilitation to achieve socio-economic integration<br />

and development. The strategy is underpinned by four<br />

pillars which are organisational efficiency; border<br />

management; stakeholder management; and safety and<br />

security. The strategic objectives for the TKCMC work<br />

programme include accelerating economic integration<br />

and development; enhancing stakeholder capacity; having<br />

a responsive border regulatory framework; as well<br />

as improving border infrastructure, road safety and<br />

security along the TKC, road infrastructure, stakeholder<br />

relations and communication infrastructure.<br />

The TKCMC work programme is a robust trade<br />

facilitation programme that supports effective trade<br />

facilitation and eventually lower trading costs. The<br />

TKCMC is cognisant of the fact that transport operators<br />

and traders choose their routes based on the performance<br />

of the corridor, and these performance indicators<br />

are the distance-related operating costs; travel time;<br />

predictability of transit; reliability of services along the<br />

corridor; safety and security as well as the “hospitability”<br />

of the route. These are therefore paramount for the TKC<br />

to remain a corridor of choice and thereby achieve its<br />

vision of being a leading corridor in trade facilitation for<br />

socioeconomic integration and development.<br />

Covid-19 impacted the TKCMC work programme. Most<br />

programmes could not be executed because negotiations<br />

could not continue as the member states’ focus was on<br />

addressing the spread of the coronavirus. Movement<br />

on the corridor was also affected as borders were only<br />

open for essential goods. However, as restrictions eased<br />

all types of cargo could move. The TKCS is optimistic<br />

that the downward spiral in growth and volumes due to<br />

Covid-19 by all TKCMC member states and the region<br />

will change for the better as countries ease their Covid-19<br />

restrictions. This recovery will be influenced by:<br />

• Regional integration (harmonisation of conflicting<br />

regulations. Covid-19 has exposed this problem)<br />

• Development of regional industrial policy (accelerate<br />

the industrialisation with a focus to improve local<br />

production capacity within the region)<br />

• Innovation in the facilitation of trade and SMART<br />

corridors (less human contact is required, virtual<br />

queuing of vehicles at the borders, pre-clearance,<br />

cargo and vehicles)<br />

• Linking Africa to allow Africa to trade with Africa<br />

• African Continental Free Trade Area (AfCFTA)<br />

• Need to build back better with private sector as the<br />

driving force. The resilience of the private sector<br />

• Deliberate effort to support private sector empowerment<br />

recovery schemes (youth and women).<br />

The TKCMC’s<br />

objectives<br />

are to<br />

simplify<br />

crossborder<br />

transactions<br />

and customs<br />

operations<br />

along the<br />

Corridor<br />

___ __<br />

Leslie Mpofu,<br />

Executive Director<br />

8 | www.opportunityonline.co.za


BUSINESS UPDATE<br />

BUSINESS UPDATE<br />

News & snippets<br />

Industry Industry insights insights from from the the past past quarter quarter<br />

Volatility in in manufacturing<br />

The<br />

The<br />

latest<br />

latest<br />

production<br />

production<br />

data<br />

data<br />

for<br />

for<br />

the<br />

the<br />

manufacturing<br />

manufacturing<br />

sector released by Statistics South Africa reflects<br />

the<br />

the<br />

resilience<br />

resilience<br />

of<br />

of<br />

the<br />

the<br />

Metals<br />

Metals<br />

and<br />

and<br />

Engineering<br />

Engineering (M&E)<br />

(M&E)<br />

cluster<br />

cluster<br />

of<br />

of<br />

sub-industries<br />

sub-industries<br />

on<br />

on a<br />

month-on-month<br />

month-on-month basis,<br />

basis,<br />

says says Steel Steel and and Engineering Engineering Industries Industries Federation Federation of of<br />

Southern Southern Africa Africa Chief Chief Economist Michael Ade. The The<br />

figures painted a worrisome annual trend as the<br />

recession deepened amid the pandemic. Unadjusted<br />

recession deepened amid the pandemic. Unadjusted<br />

manufacturing<br />

manufacturing<br />

production<br />

production<br />

decreased<br />

decreased<br />

on<br />

on<br />

an<br />

an<br />

annual<br />

annual<br />

basis<br />

basis<br />

by<br />

by<br />

10,8%<br />

10,8%<br />

in<br />

in<br />

August<br />

August<br />

when<br />

when<br />

compared<br />

compared<br />

with<br />

with<br />

August<br />

August<br />

2019.<br />

2019.<br />

The<br />

The<br />

largest<br />

largest<br />

contributors<br />

contributors<br />

to<br />

to<br />

this<br />

this<br />

decrease<br />

decrease<br />

year-on-year<br />

year-on-year<br />

in<br />

in<br />

the<br />

the<br />

M&E<br />

M&E<br />

industry<br />

industry<br />

were<br />

were<br />

the<br />

the<br />

motor<br />

motor<br />

subindustries,<br />

which which recorded recorded -30.6%, -30.6%, followed followed by by the the<br />

sub-<br />

steel, metals and and machinery sub-industries at at -11.7%. -11.7%.<br />

Supporting the DRIVING South African SOUTH aerospace, AFRICA’S defence AEROSPACE and marine INDUSTRY manufacturing sectors<br />

The Aerospace Industry Support Initiative (AISI) is a South<br />

African government initiative with the specific aim of improving<br />

the competitiveness of the local aeronautics, space, defence<br />

and marine advanced manufacturing sectors.<br />

The AISI takes its strategic direction from government’s<br />

objectives with a specific emphasis on industrialisation of<br />

technology and technology-based supplier development.<br />

The Department of Trade, Industry and Competition<br />

(the dtic) utilises the CSIR and its position in the National<br />

System of Innovation (NSI) as an independent, strategic<br />

directed R&D entity to give industry access to national<br />

expertise and infrastructure in order to improve its capabilities<br />

and offerings.<br />

Established in in 2006, the the AISI AISI has has supported the the South South African African<br />

industry both directly and and indirectly through interventions<br />

implemented by by the the following programmes:<br />

• Technology-based Technology-Based Supplier Development<br />

• Industry Development and Technology Support<br />

• Marine Manufacturing, Associated Services and and Other<br />

Manufacturing Industries<br />

Supplier Development Programme<br />

• Supplier Sector Strategic Development Support<br />

Programme<br />

Initiatives<br />

• Sector Coordination, Strategic Promotion Support<br />

Initiatives and Awareness<br />

See • Coordination, page 9 of this issue Promotion for<br />

more and information Awareness about AISI<br />

Building PPE capacity<br />

Owned and managed by Ntombekaya (Ntombie)<br />

Nonxuba, Rise Uniforms is a manufacturer and<br />

supplier of high-quality uniforms, corporate wear<br />

and medical PPE. Based in Philippi, Cape Town,<br />

they manufacture locally as per client specifications<br />

and supply nationally. In operation since 2007 and<br />

formally registered in 2010, the company has an<br />

established track record of consistently supplying<br />

uniforms to to well-known brands such as Pick n Pay<br />

and and Boxer superstores.<br />

Beyond simply meeting a product need, Rise<br />

Uniforms is is 100% black female-owned and<br />

employs employs 52 52 people from the township. With a<br />

strong strong desire desire to to see see transformation in in the Philippi<br />

area,<br />

area,<br />

Nonxuba<br />

Nonxuba<br />

deliberately<br />

deliberately<br />

chose<br />

chose<br />

this<br />

this<br />

location<br />

location<br />

for the production facility and offers a significant<br />

number<br />

number<br />

of<br />

of<br />

employment<br />

employment<br />

and<br />

and<br />

business<br />

business opportunities<br />

opportunities<br />

in<br />

in<br />

an<br />

an<br />

area<br />

area<br />

that<br />

that<br />

has<br />

has a<br />

staggering<br />

staggering 38%<br />

38%<br />

unemployment rate. They also offer training<br />

opportunities to groups of women. Over the years,<br />

opportunities to groups of women. Over the years,<br />

Rise has improved their production processes and<br />

Rise has improved their production processes and<br />

built their production capacity substantially.<br />

built their production capacity substantially.<br />

Find us on www.chemicorp.co.za


OIL AND GAS<br />

The start of<br />

something<br />

Light oil and gas condensate<br />

discoveries could be a<br />

game-changer for South<br />

African oil and gas<br />

BiG<br />

If the South African gas market is to take off and<br />

thrive, significant drilling has to take place, says<br />

the new CEO of Petroleum Agency SA, Dr Phindili<br />

Masangane. A major discovery has been made at a<br />

site south-east of Mossel Bay called Brulpadda. Dr<br />

Masangane says, “The recent discovery by Total and its<br />

JV partners in Block 11B/12B (Brulpadda) is the first<br />

giant step in that direction.”<br />

Total’s first attempt to drill the Brulpadda Prospect<br />

in 2014 was suspended before reaching target due to<br />

difficulties experienced by the drilling rig in the harsh<br />

deepwater environment. After an extensive review of<br />

the challenging surface conditions, Total contracted<br />

the Odfjell Deepsea Stavanger semi-submersible rig to<br />

drill the Brulpadda-1AX re-entry well commencing in<br />

December 2018.<br />

The Brulpadda well was drilled in approximately<br />

1 400 metres of water by the Odfjell Deepsea Stavanger<br />

semi-submersible rig. The well targeted two objectives<br />

in a deep marine fan sandstone system within combined<br />

stratigraphic/structural closure. Following the success<br />

of the main objective, the well was deepened to a<br />

final depth of 3 633 metres and was successful in the<br />

Brulpadda-deep prospect.<br />

The well encountered oil pay and a total of 57 metres<br />

of net gas condensate pay over two Middle to Lower<br />

Cretaceous high-quality reservoirs. Core samples were<br />

taken in the upper reservoir, and a comprehensive<br />

logging and sampling programme was performed over<br />

both reservoirs. The success at both the Brulpadda<br />

primary and secondary targets significantly de-risks<br />

other similar prospects on Block 11B/12B.<br />

In March and April 2019, the operator acquired 570<br />

square kilometres of 3D seismic with the Polarcus<br />

Asima vessel. The first phase of 3D seismic covered<br />

the Brulpadda discovery and the Luiperd prospect. The<br />

fully processed 3D seismic dataset validates the direct<br />

hydrocarbon indicators and thick reservoir development<br />

___ __<br />

The success at<br />

both the Brulpadda<br />

primary and<br />

secondary targets<br />

significantly de-risks<br />

other similar<br />

prospects on<br />

Block 11B/12B.


OIL AND GAS<br />

at the main objective and illuminates the deep target,<br />

confirming the large resource potential of the Paddavissie<br />

Fairway. The 3D seismic also increases PASA’s confidence in<br />

the sedimentological and structural interpretation and has<br />

been integral in selecting the location for the next exploration<br />

well on Block 11B/12B, Luiperd-1.<br />

The joint venture partnership continues to analyse and<br />

integrate the fully processed 3D seismic with the analysis of<br />

the core samples and the modular formation dynamics tester<br />

(“MDT”) samples. The core indicates a high net to gross in<br />

the main objective with good intergranular porosity and<br />

permeability. The pressure, volume and temperature (“PVT”)<br />

analysis performed on the MDT samples confirmed the high<br />

liquid yield in the main gas condensate zone of the main and<br />

deep reservoirs.<br />

In July 2019, the operator of Block 11B/12B, Total, executed<br />

a multi-well drilling contract with Odfjell Drilling for the<br />

Deepsea Stavanger semi-submersible rig, the same rig that<br />

drilled the Brulpadda discovery in February 2019. The rig<br />

recently mobilised to South Africa from Norway.<br />

In May 2020, the Block 11B/12B<br />

joint venture received the fasttrack<br />

2D seismic dataset from<br />

Shearwater GeoServices Holding<br />

AS for the 7 033 linear kilometre<br />

2D seismic programme completed<br />

earlier in the year on Block<br />

11B/12B, where the Company<br />

holds an effective 4.9% interest.<br />

Initial interpretative work has<br />

confirmed the Kloofpadda Play<br />

Trend, which consists of several large and encouraging leads.<br />

The Block 11B/12B joint venture expects the fully processed<br />

2D seismic dataset in late August 2020 and will then begin full<br />

prospect analysis for the eastern part of the block.<br />

In June 2020, the Block 11B/12B joint venture received the<br />

fast-track 3D seismic dataset from Petroleum Geo-Services<br />

ASA (“PGS”) for the 2 305 square kilometres 3D seismic<br />

programme completed earlier in the year on Block 11B/12B.<br />

Initial interpretive work has identified some additional leads,<br />

including a potential northern extension to the Luiperd<br />

prospect.<br />

Africa Energy holds a 4.9% effective interest in the<br />

Exploration Right for Block 11B/12B. The Company owns 49% of<br />

the shares in Main Street 1549 Proprietary Limited, which has<br />

a 10% participating interest in the block. Total as the operator<br />

holds a 45% participating interest in Block 11B/12B, while<br />

Qatar Petroleum and CNRI hold 25% and 20%, respectively.<br />

“Further development of the discovery is highly dependent<br />

on the success of this further drilling,” attests Dr Masangane.<br />

“Possible development could see condensate being piped to the<br />

PetroSA facility in Mossel Bay,” she adds, but these decisions<br />

are ultimately up to the operator, Total, and its partners.<br />

DR PHINDILE C MASANGANE<br />

PHD CHEMISTRY, MBA, BSC. (MATHEMATICS & CHEMISTRY)<br />

Dr Masangane was appointed as the CEO of the South African<br />

upstream oil and gas regulatory authority, Petroleum Agency South<br />

Africa, in May 2020.<br />

Before then, Dr Masangane was an executive at the South<br />

African state-owned energy company, CEF (SOC) Ltd, which is the<br />

holding company of PASA. Dr Masangane was responsible for clean,<br />

renewable and alternative energy projects. In partnership with private<br />

companies, she led the development of energy projects including the<br />

deal structuring, project economic modelling and financing on behalf<br />

of the CEF Group of Companies.<br />

Her responsibilities also include supporting the national government<br />

in developing energy policy and regulations for diversifying the<br />

country’s energy mix. In 2019, Dr Masangane was Head of Strategy<br />

for the CEF Group of Companies where she led the development<br />

of the Group’s long-term strategic plan, Vision 2040+ as well as<br />

the Group’s gas strategy. From 2010 to 2013, Dr Masangane was<br />

a partner and director at KPMG, responsible for the Energy Advisory<br />

Division. In this capacity, she successfully led the capital raising of<br />

$2-billion for the Zimbabwe power utility, ZESA/ZPC’s hydro and coal<br />

power plants expansion programmes.<br />

PASA has successfully attracted major explorers to South Africa<br />

and facilitated the acquisition of many new large<br />

seismic surveys and some exploratory drilling,<br />

through a period affected by legislative<br />

issues and a major oil price crash.<br />

“PASA’s challenge is to ensure that both<br />

international and local energy companies<br />

see this value proposition with South Africa<br />

and choose our country. In this low oil and<br />

gas price environment, companies are inclined<br />

to cut back on capital investments and we<br />

need to partner with them to sustain the<br />

momentum,” says Dr Masangane.<br />

___ __ _<br />

Dr Phindile C. Masangane


OIL AND GAS<br />

Refining 2021: who<br />

will be in the game?<br />

To keep up with change, refineries will have to restructure, strategically reposition their assets, or leave<br />

the market. With one in five oil refineries expected to cease operations over the next five years, choosing<br />

the right operating model and level of integration will be crucial for survival and sustained profitability.<br />

These stark prospects are among the findings of<br />

a recent Kearney study of the global refining<br />

market. In North America and Western Europe,<br />

the current trend of refinery closings is expected<br />

to continue, with one in five refining assets being<br />

squeezed out of the market over the next five years.<br />

Meanwhile, the boom in demand in Asia and the Middle<br />

East will lead to substantial changes in capacity and<br />

partnership structures.<br />

The conventional wisdom of vertical integration as<br />

the ideal and sustainable model for refiners is being<br />

challenged. Choosing the right operating model and<br />

the required level of integration across the value chain<br />

– for each asset and each region – will be crucial for<br />

improving margins and sustaining profitability in a<br />

volatile market. For assets that are not financially viable,<br />

regardless of their model, a decision about whether to<br />

exit will need to be made early on to prevent financial<br />

losses later in the decade.<br />

VALUE DRIVERS IN REFINING<br />

In the face of such rapid regional and global change,<br />

refiners need to re-examine what creates value in their<br />

industry to ensure they capture the most value from<br />

their asset portfolios. The value an asset generates<br />

depends on factors related to input, output and the<br />

asset itself.<br />

Value related to input factors includes crude<br />

fungibility, trading and hedging, energy imports and<br />

blending components. Output value relates to the choice<br />

of product and market sectors, for example, lubricants,<br />

petrochemicals, specialities (aviation and marine), or<br />

fuel and energy (domestic or industrial). Asset value<br />

relates to scale and technology, the fiscal and regulatory<br />

(regime) environment, supply chain management and<br />

slate flexibility.<br />

The value derived from each barrel of oil consumed<br />

varies from day to day and over the long term, as does<br />

the risk to that value. Risk factors relate to supply<br />

and demand fluctuations and arbitrage, price and<br />

time exposure, volatility and availability, political<br />

and regulatory instability and uncertainty, and<br />

interdependencies along the value chain.<br />

In such a complex and changing environment,<br />

refiners must be confident that they are participating in<br />

the market most productively – ensuring that a refinery<br />

asset has both the right flexibility and the ability to<br />

capture multiple marketing options.<br />

OPERATING MODELS FOR REFINERS — A DIVERSE PALETTE<br />

Four principal operating models are currently in play<br />

in the industry, with no single model dominating. The<br />

picture is evolving constantly, as companies adopt<br />

models they feel are best suited to the times. The<br />

operating models can be defined briefly as follows:<br />

• Upstream integration. A single source of crude oil<br />

accounts for more than 50% of the upstream integrated<br />

refiner’s supply; the crude source can be either equity<br />

crude or a long-term contractual arrangement.<br />

___ __<br />

Adapting to local or<br />

regional conditions,<br />

while making the most<br />

of global synergies, is<br />

the name of the game.<br />

12 | www.opportunityonline.co.za


Refinery value drivers<br />

OIL AND GAS<br />

Input<br />

Crude fungibility<br />

• Local or regional<br />

balances<br />

• Pipeline or imports<br />

by ship<br />

• Multiple asset<br />

optimisation<br />

Trading and hedging<br />

• Feedstock<br />

• Products<br />

• Currency<br />

Energy imports<br />

• Electricity<br />

• Steam<br />

Blending components<br />

• Gasoline<br />

• Biofuel<br />

• Gas to liquids<br />

Source: A.T. Kearney analysis<br />

Asset-related<br />

Output<br />

Scale and technology<br />

• World-scale or<br />

sub-scale<br />

• Distillation and<br />

conversion<br />

• Technology<br />

Fuel and energy<br />

• Merchant only<br />

versus retail<br />

• Export versus<br />

local sales<br />

Fiscal and<br />

regulatory regime<br />

• Tax<br />

• Regulation<br />

• Environment<br />

Specialties<br />

• Specialist markets<br />

(marine, aviation,<br />

asphalt) with<br />

dedicate assets<br />

• Brand equity<br />

Supply chain<br />

management<br />

• Location<br />

• Logistics infrastructure<br />

• Working capital<br />

optimisation<br />

Petrochemicals<br />

• Which value chain<br />

•Joint venture or<br />

sole ownership<br />

• Export versus<br />

local sales<br />

State flexibility<br />

• Dedication of<br />

technology<br />

• Ability to<br />

change baskets<br />

• Operational flexibility<br />

Lubricants<br />

• Base oil plant<br />

• Blending plant<br />

and storage<br />

www.kearney.com<br />

• Merchant refiner. Lacking both upstream and<br />

downstream integration, the merchant refiner has<br />

the flexibility to react quickly to both crude and<br />

downstream supply opportunities and to adjust<br />

operations or integrate into a larger logistics hub.<br />

• Downstream integration. Dedicated marketing<br />

channels take more than 50% of the downstream<br />

integrated refiner’s production. These trades are<br />

secured either through equity or long-term contracts.<br />

• Vertical integration. Fulfilling the requirements for<br />

upstream and downstream integrated refiners at<br />

the same time, the vertically integrated refiner can<br />

capture value by making the most of advantages across<br />

the value chain.<br />

MAXIMISING VALUE: DIFFERENT STRATEGIES<br />

FOR DIFFERENT REGIONS<br />

In such a diverse landscape, there is no one-size-fitsall<br />

approach to business. Adapting to local or regional<br />

conditions, while making the most of global synergies,<br />

is the name of the game. The only given in this shifting<br />

landscape is that refining excellence is imperative in all<br />

input, output and asset-related dimensions.<br />

Eastern European and Russian refiners are investing<br />

in technologies and scale to overcome the limitations of<br />

their dated structures and to pursue asset excellence.<br />

However, infrastructure and output issues around<br />

the still-underinvested and not yet upgraded refining<br />

technology landscape are hindering integration with<br />

the local market and are favouring fuels export instead.<br />

Asia Pacific has the highest activity in terms of<br />

numbers of refineries opened and closed, even as small,<br />

polluting and less efficient refineries are being closed<br />

and world-scale state-of-the-art facilities are coming<br />

online. In this highly attractive market, international<br />

oil majors are becoming much more involved in joint<br />

ventures to build petrochemical plants, attracted by<br />

relatively high economic growth in many countries.<br />

THE ONLY CERTAINTY: A REQUIREMENT FOR EXCELLENCE<br />

We expect further significant upscaling in global<br />

refining, which will result in divestment and closure of<br />

lagging assets in North America and Western Europe.<br />

The changing global supply-and-demand situation will<br />

push Middle East refiners to intensify their partnering<br />

with Asia Pacific players.<br />

Meanwhile, more refineries in Asia Pacific – especially<br />

China and India – will integrate with petrochemical<br />

plants, as a combined build-or-buy reverse integration.<br />

Changes in crude availability and discounts will affect<br />

refining capacity and profitability of some players in<br />

the region.<br />

Companies can respond to these changes by choosing<br />

among different operating models and methods of<br />

value-chain integration. Each model has its strengths<br />

and weaknesses; for instance, the pure merchantrefining<br />

model ranges from vulnerable to high volatility<br />

in absolute oil price.<br />

For new investors, integration with a competitively<br />

positioned upstream player or a secure downstream<br />

business will be important. Deep integration of refining<br />

with petrochemicals can add value but comes with its<br />

complexity and economic factors..<br />

The only given in this shifting landscape is that<br />

refining excellence is imperative in all input, output,<br />

and asset-related dimensions. The market gives no-one<br />

a free ride, and it has become more important than ever<br />

to manage risk exposure.<br />

___ __<br />

The value derived<br />

from each barrel of<br />

oil consumed varies<br />

from day to day<br />

and over the long<br />

term, as does the<br />

risk to that value.<br />

www.opportunityonline.co.za | 13


LAUREATE LEADERS<br />

Heal our people,<br />

lead our land<br />

Busisiwe Mavuso and Dr Mamphela Ramphele<br />

declare that national interest must be placed<br />

first. It is time to transform South Africa.<br />

Covid-19 has exposed just how fractured South<br />

Africa’s democracy is and how unequal we are<br />

as a society. We need rational, pragmatic choices<br />

from government, labour and business, says<br />

Busisiwe Mavuso, CEO, Business Leadership<br />

South Africa. “If this pandemic doesn’t make us, as<br />

leaders, carefully think about how we sustainably<br />

start to deal with our structural economic flaws, then<br />

I don’t know what will.” Mavuso avers the 2020 economic<br />

outlook was bleak with a projected 0.3% economic<br />

growth. Unemployment data recently released a recorded<br />

2.2-million job losses in the second quarter of the<br />

year, and that the economy shrank simultaneously by<br />

an annualised 51%.<br />

South Africa is hampered in its response to the<br />

pandemic because many citizens lack access to<br />

running water, have no money for sanitiser, and live in<br />

overcrowded housing.<br />

Countries that will bounce<br />

back quickly are those<br />

with a “diamond” economic<br />

structure, with<br />

an 80% middle class.<br />

“It is the middle class<br />

that carries the economies,<br />

not the rich,”<br />

articulates Mavuso.<br />

“The biggest ticking<br />

time bomb in this country is inequality, which<br />

undermines social stability, and means the quest of<br />

attaining a sustainable and conducive environment<br />

within which business should operate will continue to<br />

be elusive. It is for this reason that, as business, we need<br />

to be more intentional and deliberate about the role we<br />

play in society.<br />

“The question we need to be asking is what now,<br />

where to from here, and what is required from each<br />

of the social partners in moving the country forward.<br />

All of our efforts need to be geared towards economic<br />

recovery, and what the country needs right now is<br />

rational, pragmatic choices to guide our actions.”<br />

Mavuso acknowledged that government controls the<br />

policy environment within which all operate. “We need<br />

the government to come up with a president-led and<br />

cabinet-backed plan that we can all get behind with<br />

a common issue.” Nedlac partners had presented the<br />

president with a proposed economic recovery strategy,<br />

and “what is required now is clear and decisive<br />

leadership from the top”.<br />

Businesses can choose to work with fewer people,<br />

or with more machines, to increase productivity. “A<br />

great deal of cost is created by regulation. Employers<br />

spend a great deal on labour disputes that end up in<br />

the CCMA or court, a lot of production is lost to strikes,<br />

and many employers sit with unproductive or even<br />

destructive staff members because it is too difficult<br />

___ __<br />

Countries that will<br />

bounce back quickly<br />

are those with a<br />

“diamond” economic<br />

structure, with an<br />

80% middle class.<br />

“It is the middle<br />

class that carries<br />

the economies,<br />

not the rich,”<br />

articulates Mavuso.<br />

Let us agree that as a country we seem to<br />

lack the political courage to address some<br />

of the stringent labour regulations, and to<br />

have an honest and frank discussion with<br />

our labour constituents in this regard


LAUREATE LEADERS<br />

to fire them.” An economy able to quickly replace<br />

unproductive workers at minimal cost will be one that<br />

employs many more workers, because on average they<br />

will be more productive, and the all-in cost of hiring<br />

them would be lower.<br />

“Let us agree that as a country we seem to lack<br />

the political courage to address some of the stringent<br />

labour regulations, and to have a honest and frank<br />

discussion with our labour constituents in this<br />

regard. It is about time that labour came to the party<br />

by working with business to preserve and create more<br />

jobs. There needs to be serious consideration around<br />

short time and amendment of some of the rigid labour<br />

regulations.” [Short time is working fewer hours as an<br />

alternative to retrenchment.]<br />

“South Africa’s social injustice is business’ crisis<br />

as much as it is the government’s crisis. It is our<br />

crisis because, as a grouping that has levers to<br />

economic power, we have a special responsibility<br />

to work firmly towards this agenda. Let us agree,<br />

as business, that some things are bigger than selfinterest<br />

and the profit motive. And those are issues of<br />

national interest that need to be elevated above all,”<br />

Mavuso concludes.<br />

“It cannot just be left to government to fix our<br />

structural inequalities as a country because,<br />

unfortunately for us, government’s failure is South<br />

Africa’s failure. And South Africa’s failure is business’<br />

failure. As the adage goes, show me a failed state, and<br />

I’ll show you a failed nation.”<br />

___ __<br />

“Let us agree, as<br />

business, that some<br />

things are bigger<br />

than self-interest and<br />

the profit motive.<br />

And those are issues<br />

of national interest<br />

that need to be<br />

elevated above all.”<br />

The Covid-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming our society into a<br />

more equitable, resilient and prosperous democracy that promotes the wellbeing of all people and our planet. This call to<br />

action was made by academic, businesswoman and political thinker, Dr Mamphela Ramphele, co-founder of ReimagineSA.<br />

The greatest leaders in extraordinary times in<br />

world history are not necessarily those who had<br />

demonstrated their capacity to lead in normal<br />

times, asserts Dr Rhamphele. “On the contrary,<br />

leaders who rise to the demands of extraordinary<br />

crises tend to be those willing to take the risk to be<br />

creative, inventive and courageous. Such leaders<br />

succeed because they dare to break from the known<br />

to the unknown, from the familiar to the unfamiliar,<br />

from traditional to non-traditional ways to open up new<br />

pathways to more promising futures.”<br />

LEADERSHIP IN CHALLENGING TIMES<br />

Racism, sexism and inequity “that have reared their<br />

ugly heads with a vengeance over the past few years”<br />

are warning signs that unless we address these legacy<br />

issues, future generations will be hampered by the<br />

burden of these ghosts.<br />

Corporate South Africa can lead the charge in this<br />

healing work as businesses return to the workplace,<br />

says Dr Ramphele. “There is an imperative to initiate<br />

processes of deep conversation in safe spaces between<br />

leaders, managers and workers about how to work<br />

together to create a new normal in the workspace.<br />

Healing conversations have to go beyond the wounds<br />

of the past to embrace the fragilities in work, family,<br />

community and public life that Covid-19 has laid bare.<br />

“Critical, responsible and accountable citizenship<br />

is a key success factor of stable societies across the<br />

world. We now know that where there is trust between<br />

people in the workplace, productivity, creativity and<br />

innovation thrive.”<br />

LEADING THE EMERGENCE FROM POST-COVID EMERGENCY<br />

Humanity is consuming 1.7 times the resources we<br />

should, and the world is approaching a tipping point<br />

on climate change. Protecting the future of human<br />

civilisation and the wellbeing of our planet requires<br />

dramatic interventions. These include human and<br />

economic transformation, with a radical overhaul of<br />

corporate governance, finance, policymaking and<br />

energy systems towards greater transparency and<br />

accountability. We need to address three obstacles:<br />

• Shareholder- instead of stakeholder-driven business<br />

• Finance used in inadequate and inappropriate ways<br />

• Governance based on outdated economic thinking<br />

and faulty assumptions<br />

Enterprises need to listen to trade unions and<br />

workers’ collectives, consumer advocates and others in<br />

the rest of society. Corporate governance must reflect<br />

stakeholders’ needs instead of shareholders’ whims.<br />

Government assistance to business should be less about<br />

subsidies, guarantees and bailouts, and more about<br />

building partnerships. Strict requirements should be<br />

attached to any corporate or state-owned enterprise<br />

bailouts so that taxpayers’ money is used productively<br />

and generates long-term public value.<br />

“We need to reimagine and rebuild governance<br />

systems from the local, provincial and national levels<br />

and to strengthen critical citizenship to ensure that<br />

we, the people, relentlessly demand accountability<br />

in a responsible manner within the ambit of the law.<br />

Destruction of public property in the name of public<br />

anger and rage must end. Citizen accountability must<br />

rest on taking ownership of these public assets and<br />

www.opportunityonline.co.za | 15


LAUREATE LEADERS<br />

_____ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _<br />

Leaders who rise to the demands of extraordinary<br />

crisis tend to be those willing to take the risk<br />

to be creative, inventive and courageous<br />

___ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _<br />

needs to be complemented by severe punishment for<br />

those who continue to be destructive.”<br />

Dr Ramphele advocates robust plans for a transition<br />

to renewable energy, with timelines towards zero<br />

emissions. “We have much to gain by kick-starting<br />

our economy through accelerating investments in<br />

enterprises that promote regenerative economic<br />

production systems.”<br />

South African SMMEs are largely in survival mode.<br />

We require nimble and integrative approaches that<br />

collapse the bureaucracy of existing organisations into<br />

a high-impact platform to identify and significantly<br />

invest financial and business skills support, she says.<br />

We need to move away from GDP as a measure of<br />

progress. “GDP is an inadequate measure given that it<br />

largely accounts for, and values, only consumption. GDP<br />

does not consider the ecological costs in the production<br />

of goods and services that have a major impact on the<br />

wellbeing of people and our planet.”<br />

Public services should be reimagined to ensure<br />

high-quality, sustainable solutions. “The pernicious<br />

tender system that has turned public servants into<br />

administrators of interminable tender processes<br />

needs to be ended.” Social and physical infrastructure<br />

development must be driven by skilled personnel, with<br />

capable leaders at local, provincial and national levels<br />

to ensure that they can negotiate value for money for all<br />

public-private partnerships.<br />

“We urgently need to transform and revitalise<br />

infrastructure to kick-start our moribund economy. Wellplanned<br />

and well-executed infrastructure development<br />

programmes are the only guarantor of training<br />

opportunities for the millions of young unemployed<br />

people to become artisans and maintenance workers.”<br />

A FAILING EDUCATION WHEN EXCELLENCE IS ATTAINABLE<br />

Our education system is the best-resourced in Africa,<br />

yet by all measures is among the worst performers<br />

globally. In the 2018-2019 fiscal year, 16.5% of<br />

government expenditure went to basic education;<br />

overall, 20% of our national resources are spent on<br />

basic and higher education annually, yet we have “a<br />

hopelessly underperforming system that has failed<br />

generations of young people since 1994”.<br />

“It would be much cheaper to let go of all default<br />

teachers, 50 years and older, with attractive packages.<br />

We would then be able to hire young people from our<br />

higher education and training system, who are assessed<br />

to have the aptitude and commitment to become 21stcentury<br />

teachers. In-service training of scores of young<br />

people would enable us to reimagine and build a 21stcentury<br />

education system.”<br />

Dr Ramphele concludes: “Covid-19 has created an<br />

urgent imperative to transform our inequitable society<br />

into one governed by the values of ubuntu – that<br />

would help us understand that there is no ‘I’ without<br />

‘We’. An ubuntu value-based society, with citizens<br />

that are liberated from the impositions of inferiority<br />

and superiority complexes, is urgently needed. Such<br />

a society would be driven by healthy relationships<br />

with self, family, community and wider society.<br />

Leadership that is self-liberated would emerge to<br />

lead the rebuilding of our broken public institutions<br />

in line with ubuntu values and the prescriptions of<br />

our Constitution.”<br />

___ ___<br />

“We have much to gain<br />

by kick-starting our<br />

economy through<br />

accelerating investments<br />

in enterprises that promote<br />

regenerative economic<br />

production systems.”


GLOBAL TRADE<br />

More than beer<br />

and chocolates<br />

Flanders, the northern Dutch-speaking region of Belgium, has a lot to offer<br />

South African companies that want to enter the European market.<br />

Since the Middle Ages, Flanders was a textile<br />

region, making tapestries and clothing. The<br />

textile sector diversified into flooring products<br />

from carpets to wooden flooring, technical textiles<br />

and artificial grass. Flanders is now expanding<br />

in new areas of expertise such as smart textiles and new<br />

materials, where for example, microchips are integrated<br />

in the textile fabrics.<br />

In the golden Sixties, Flanders was successful in<br />

attracting multinational chemical companies to the port of<br />

Antwerp. The port is an ideal gateway to the international<br />

markets and the European hinterland. The different plants<br />

are interconnected with pipelines and connected with<br />

other ports (such as Zeebrugge and Amsterdam) making it<br />

a very efficient production location. Sasol of South Africa is<br />

present in Flanders with a distribution facility in Antwerp.<br />

Another wave of investments in the Sixties came from<br />

the automotive sector. Today Volvo (XC40 model) and<br />

Audi (E-Tron model) in the Brussels region have flexible<br />

production plants. Flanders also attracts automotive<br />

suppliers as well as truck and coach/bus manufacturers.<br />

Volvo trucks has the largest manufacturing plant in Ghent.<br />

New investments also stem from the pharmaceutical<br />

sector. The pharmaceutical development started in<br />

1<strong>95</strong>3 with Dr Paul Janssen, who founded Janssen<br />

Pharmaceuticals in Beerse. His challenge was to merge<br />

pharmacology and chemistry knowledge: 80 medicines<br />

were discovered in different fields, including Opiod<br />

(Fentanyl – pain medication), Mikonazole (Daktarin<br />

– antifungal medication) and Loperamide (Imodium –<br />

diarrhea medication) to name a few.<br />

Green biotech was introduced to Flanders by the<br />

company PGS (Plant Genetic Systems) in 1992. The<br />

founders, Prof Mantagu and Dr Jeff Schell, were the first<br />

to develop plants resistant to insects, pests and herbicides<br />

by genetically engineering the plants. Many of the corn,<br />

cotton, yellow maize and soybeans currently available in<br />

South Africa are GM (genetically modified) crops.<br />

Medical biotechnology (red biotech) has developed<br />

rapidly in Flanders, mostly at the five universities and<br />

four academic hospitals for clinical trials. More than 140<br />

companies have been formed over the years.<br />

In the ICT space, Flanders is one of the worldwide pioneers<br />

in nanotechnology (chip technology) thanks to the<br />

InterUniversity Micro Electronics Center (IMEC), linked to<br />

the oldest university of Europe: KU Leuven. IMEC expanded<br />

its expertise in nanotechnology and chip technology<br />

to application domains such as healthcare, smart cities,<br />

mobility and manufacturing, logistics and energy.<br />

Flanders is now on the forefront of high-tech research and<br />

the digital economy. More than 120 companies have spun<br />

off since IMEC was established in 1986.<br />

The food-processing sector is well-established: the<br />

beverage sector boasts 224 breweries, 1 000 types<br />

of beers and the largest brewing company, ABInbev.<br />

Chocolate production is the highest in Europe, but the<br />

region also excels in the production of frozen vegetables,<br />

fries and bakery products.<br />

Flanders is strategically located in<br />

the middle of Europe, making it an ideal<br />

location for an European Distribution Centre<br />

(EDC). More than 250 companies (including<br />

Nike, Bose, Black & Decker, Volvo, Mazda,<br />

Scania, Ikea, Ingram Micro, Greenspan and<br />

Chiquita) selected Flanders as an EDC.<br />

South African companies should consider<br />

Flanders as an R&D location or distribution<br />

hub for a variety of sectors. Flanders excels<br />

in developing the “Triple Helix’’ (company: education:<br />

government). Building your presence in Europe reduces<br />

your dependence on the rand, your company becomes<br />

part of the various ecosystems and you can tap into<br />

qualified personnel and a broad range of incentives.<br />

www.flandersinvestmentandtrade.com<br />

___ __<br />

Luc Fabry<br />

Trade and Investment<br />

Commissioner,<br />

Flanders Investment<br />

& Trade<br />

___ __<br />

IMEC has 2 clean<br />

rooms and is at<br />

the forefront of<br />

chip design and the<br />

digital economy.<br />

www.opportunityonline.co.za | 17


AGRICULTURE<br />

Two truths about<br />

Africa’s agriculture<br />

There are two truths today about African agriculture: significant progress<br />

has been made, and there is potential for much more.<br />

The progress has been quite impressive.<br />

Agricultural production is up 160% over the past<br />

30 years, far above the global average of 100%.<br />

Eighteen Sub-Saharan African countries have<br />

reached the Millennium Development Goals’<br />

first target of halving the proportion of people who<br />

are hungry. Country-level programmes, cross-border<br />

initiatives and pan-African groups have all played<br />

important roles in these advances.<br />

Yet there is vast room for improvement. Africa<br />

remains a net importer of food, although it has 60% of<br />

the world’s uncultivated arable land. As its population<br />

has doubled overall and tripled in urban areas in the<br />

past 30 years, agricultural production and food security<br />

have struggled to keep pace. Africa is the only continent<br />

where the absolute number of undernourished people<br />

has increased over the past 30 years.<br />

Africa will have a population of two-billion by 2050,<br />

and agriculture will be central to feeding all of those<br />

people. Agricultural transformation must build social<br />

cohesion, create beneficial continental trade, provide<br />

a platform for global exports and, most importantly,<br />

help create millions of jobs while pulling subsistence<br />

farmers out of poverty.<br />

AFRICA’S AGRICULTURAL TRANSFORMATION AT THREE LEVELS<br />

Transforming the agricultural value chain at three<br />

levels – farmer, market and cluster – is central to any<br />

progress in Africa.<br />

FARMERS<br />

Smallholder farmers contribute up to 80% of Sub-<br />

Saharan Africa’s food supply, according to the UN’s<br />

Food and Agriculture Organisation, and Africa has an<br />

estimated 33-million smallholder farms. Increasing<br />

their capabilities would increase Africa’s output and<br />

help solve Africa’s poverty and malnutrition.<br />

Farmer-level transformation should seek to increase<br />

yields and reduce post-harvest losses. It requires<br />

granular-level interventions that form the basis for<br />

sustained economic and societal success. Enablement in<br />

areas like education, infrastructure, water management<br />

and regulation is crucial as well. Public-private<br />

initiatives can ensure capability-building support and<br />

the development of structures in areas like financing.<br />

Crop-specific government initiatives in certain areas,<br />

depending on soil and climatological specifics, could<br />

also benefit.<br />

These initiatives can be facilitated by a pan-African<br />

perspective in three ways:<br />

• Best practice sharing.<br />

Providing a best practice clearinghouse for farmer<br />

associations and governments.<br />

• Support of governments<br />

Aiding governments in skills development and<br />

coordinating cross-country initiatives.<br />

• Public-private partnership initiatives<br />

Creating a first “port of call” for large corporate and<br />

institutional investors to ensure the effectiveness<br />

and coordination of investments.<br />

___ __<br />

At regional and<br />

country levels,<br />

government and<br />

market actors need<br />

to create the markets<br />

that allow the trade of<br />

homegrown products.<br />

18 | www.opportunityonline.co.za


AGRICULTURE<br />

www.kearney.com<br />

MARKETS<br />

Farmers need access to markets to earn their fair share<br />

of the profit pool in the value chain. Good markets,<br />

in turn, provide food security for the population and<br />

facilitate Africa’s agricultural self-sufficiency.<br />

Making markets work is a supply chain infrastructure<br />

and information issue. Governments and<br />

private investors need to ensure that sufficient<br />

roads, warehouses, processing facilities and other<br />

infrastructure are in place to get products to<br />

increasingly urbanising markets. Farmers need access<br />

to information to deliver products to the markets that<br />

offer them the best price. At regional and country<br />

levels, government and market actors need to create the<br />

markets that allow the trade of homegrown products.<br />

Markets are often developed at country level, but a<br />

pan-African strategy would include the best practice<br />

sharing and public-private partnership support we<br />

highlighted for the farmer level. Additionally, for<br />

markets, removing trade barriers and inefficiencies<br />

between countries and freeing up the traffic of<br />

agricultural produce across Africa would significantly<br />

boost the intra-African cross-border trade of produce.<br />

_____ __ ___ __ _ _<br />

Africa is a net importer<br />

of food, although it<br />

has 60% of the world’s<br />

uncultivated arable land<br />

___ __ _____ __ _ _<br />

CLUSTERS<br />

In this final, macro-level of transformation, Africa has<br />

the potential to become a major agricultural player<br />

globally, facilitating the export of its products outside<br />

the continent. Cluster-specific initiatives typically focus<br />

on product availability and production competence.<br />

Dairy exports from New Zealand are one successful<br />

example of macro-level transformation. Years ago,<br />

the New Zealand Dairy Board created a platform for<br />

best practice sharing among its members to improve<br />

productivity and product quality and actively created<br />

export markets for excess products. Some of the Dairy<br />

Board’s activities became part of a new cooperative<br />

called Fonterra – now one of the leading global milk<br />

processors and dairy exporters, with roughly 22-billion<br />

litres of milk produced annually. Fonterra also produces<br />

more than two-million tons of dairy ingredients,<br />

speciality ingredients and consumer products annually<br />

– <strong>95</strong>% of which is exported. This allows New Zealand to<br />

punch above its weight in the dairy market.<br />

Cluster-specific export initiatives like Fonterra should<br />

be a government goal in Africa. From a pan-African<br />

perspective, identifying sectors and coordinating<br />

initiatives across countries are essential steps to a<br />

transformation strategy.<br />

A PAN-AFRICAN FRAMEWORK<br />

Due to existing dynamics, African smallholders do not<br />

yet benefit from best-in-class global farming practices.<br />

They are often trapped in a vicious cycle that prevents<br />

them from improving their productivity and income.<br />

These farmers are, however, the fabric of African rural<br />

societies. Their future success is crucial as Africa’s<br />

population grows and urbanises.<br />

Strategies are only as effective as the change they<br />

bring about. Truly transforming African agriculture<br />

at the farmer, market and cluster levels depends on<br />

financing, government enablement and sustainability.<br />

Financing will fund the improvements in the value<br />

chain on both the micro (farmer) and macro (export)<br />

levels. Government enablement means putting in place<br />

the regulatory frameworks and structures that foster<br />

a strong business environment – for example, giving<br />

farmers title to the land they use and allowing them to<br />

use that land as collateral for loans for investments that<br />

can build. The development should become sustainably<br />

effective through the close interaction of public<br />

and private enterprises (for example, the African<br />

Development Bank, international donors, or private<br />

enterprises buying into the value chain).<br />

SUCCESS FOR AFRICA’S AGRICULTURE<br />

Governments must focus on improving the enabling<br />

environment for local agriculture, particularly when<br />

it comes to land rights, infrastructure, market access<br />

and elevating women’s roles in society. Pan-African<br />

institutions, such as the African Union, can help<br />

develop cluster opportunities across the continent and<br />

promote intra-African trade and best practice sharing.<br />

The private sector can help by investing,<br />

understanding that Africa’s potential for growth and its<br />

untapped arable land offer huge opportunities despite<br />

the risks. Public-private partnerships can unlock value,<br />

as long as both sides share the onus of success.<br />

No longer must Africa go hat-in-hand to feed its vibrant<br />

and resourceful population. It can help its people feed<br />

themselves, their villages, towns and countries. As scale<br />

and quality develop, export markets from the continent<br />

can flourish, leading increasingly not just to poverty<br />

alleviation but wealth creation. As more inhabitants<br />

see the promise of a better future in agriculture, many<br />

more clusters will be developed, truly making Africa the<br />

breadbasket that the world so desperately hungers for.<br />

___ __<br />

Africa has the<br />

potential to become<br />

a major agricultural<br />

player globally,<br />

facilitating the export<br />

of its products<br />

outside the continent.<br />

www.opportunityonline.co.za | 19


LEGAL SERVICES<br />

Lawful value<br />

Noko Maimela Incorporated was established with the sole purpose of offering quality legal and multidisciplinary<br />

advisory services to corporate and public institutions. <strong>Opportunity</strong> speaks to CEO Noko Maimela.<br />

Clients are at the heart of Noko Maimela’s strategy and<br />

vision. How do you provide a superior service to clients?<br />

Throughout the period of our existence, we have<br />

demonstrated passion, knowledge and understanding<br />

in the areas we chose to specialise in. We always<br />

appreciate that the most important feature of human<br />

relations is how you treat your clients. We can adapt<br />

to every client’s needs and give dedication to each and<br />

every client we serve, no matter how big or small.<br />

Our professional and technical staff is committed to<br />

ensuring that we deliver timeously on our promises. We<br />

treat the client’s business as if it is our own. We believe in<br />

bringing peace of mind to our client right from the start<br />

and we put in as much effort and skill as it takes to sort out<br />

our client’s problems. Therefore, our services are designed<br />

to make a success of every client’s needs. We are willing to<br />

go the extra mile, just for you, our Valued Client.<br />

Please tell us about skills development and mentoring<br />

at Noko Maimela Incorporated.<br />

Noko Maimela Inc relies on highly skilled employees<br />

to achieve its objectives. We value and therefore<br />

seek to develop, nurture, maximise and manage the<br />

development of such skills and competences.<br />

We refuse to practice tokenism in our employment<br />

and in this regard, we believe in strengthening our staff<br />

from within and transferring knowledge and expertise<br />

through mentoring and skills development. In this way,<br />

we can retain and reward talent without abandoning<br />

our principles and fundamental values.<br />

Noko Maimela Inc currently recruits and hires most<br />

of its employees from rural areas around Limpopo with a<br />

view of nurturing the skills around those areas. We will<br />

continue to recruit from these previously disadvantaged<br />

areas as we think it is in the best interest of our country.<br />

What measures do you take to ensure that staff<br />

measure up to the company’s expectations of always<br />

providing superior service?<br />

We strive to achieve and maintain a high level of<br />

service quality and work performance excellence and<br />

apply several measures to ensure that our people,<br />

professionals and support staff comply with our<br />

expectations of superior product and service quality.<br />

All work produced by candidates and junior attorneys<br />

below the level of associates is supervised, monitored and<br />

checked by the senior attorneys/director responsible for<br />

overseeing the work. We have a number of procedures<br />

and policies in place, which all professional staff members<br />

must adhere to.<br />

Our quality assurance policy aims to ensure that<br />

quality-related problems are identified at an early stage.<br />

We believe that issues should be resolved proactively<br />

rather than reactively.<br />

For each client, we appoint a senior attorney who<br />

is primarily responsible for the relationship between<br />

the firm and the client. The senior attorney’s role is<br />

to ensure service quality and that the firm meets the<br />

client’s expectation on turnaround times and level of<br />

service delivery, and he or she will be assisted by a<br />

team of candidate attorneys, professional<br />

attorneys and support staff. The senior<br />

attorney will maintain frequent contact<br />

with the client and is expected to hold<br />

regular and formal client meetings to<br />

discuss and identify any service quality<br />

problems so that improvements can<br />

be implemented.<br />

Please tell us about your Corporate Social<br />

Investment outreach programme.<br />

CSI is an investment in the community,<br />

to create an environment that is safe,<br />

healthy, educated, secure and conducive<br />

to a better lifestyle. Noko Maimela Inc is<br />

committed to improving the livelihood of<br />

previously disadvantaged communities<br />

through its CSI outreach programme.<br />

Noko Maimela’s commitment will ensure<br />

the sustainability of many previously<br />

disadvantaged communities. Through<br />

this commitment we also encourage our<br />

employees to identify charities within<br />

their communities in need of help.<br />

We believe in<br />

strengthening<br />

our staff from<br />

within and<br />

transferring<br />

knowledge<br />

and expertise<br />

through<br />

mentoring<br />

and skills<br />

development<br />

___ __<br />

Noko Maimela,<br />

Founder and CEO<br />

20 | www.opportunityonline.co.za


BEST OF BREED<br />

As the established leader in matters relating to legal services,<br />

Noko Maimela Incorporated is well positioned to deliver excellence<br />

in debt collection and legal services.<br />

Our focus is on the standardisation and implementation<br />

of best-of-breed methodologies. Noko<br />

Maimela Incorporated strives to maintain and<br />

provide state-of-the-art legal services with<br />

modern solutions.<br />

With an entrepreneurial spirit and document-centric<br />

expertise from traditional office technology, Noko Maimela<br />

Incorporated has moved rigorously towards a process<br />

mindset, and is today capable of presenting a new value<br />

proposition built on a managed legal services model.<br />

Among the services that Noko Maimela Incorporated<br />

offers are the following:<br />

• Litigation and claims (Magistrate and High Courts,<br />

Labour Court, Land Claims Court, Supreme Court of<br />

Appeals and Constitutional Court)<br />

• Legal costs<br />

• Personal injury law<br />

• Contract management<br />

• Commercial drafting<br />

• Corporate legal compliance<br />

• Municipal courts<br />

• Alternative dispute resolution<br />

• Employment and labour law<br />

• Insolvency law<br />

• Housing and land tenure laws<br />

• Evictions and interdict<br />

• Commercial legal services<br />

• Debt collection<br />

• Tracing and data cleansing<br />

• General advisory law<br />

MISSION STATEMENT<br />

Through understanding our clients and meeting their<br />

needs, Noko Maimela Inc will grow to be the leading legal<br />

service provider and advising institution in and around<br />

South Africa.<br />

VISION STATEMENT<br />

To enrich the lives of our clients by providing value and<br />

protecting their rights and interests.<br />

____ ___ _<br />

VALUES<br />

We, at Noko Maimela Incorporated, subscribe to the<br />

following human values which have been our hallmark<br />

throughout the period of our existence:<br />

• Integrity in all our actions<br />

• Commitment to our clients, our community and to<br />

each other<br />

• Passion for result and excellent customer services<br />

• Growth for our employees, our customers and the<br />

entire South African community<br />

• Respect for the environment, and our clients<br />

• Confidentiality in clients’ affairs<br />

Noko Maimela Incorporated differentiates its services<br />

through innovation by striving to deliver the following<br />

objectives and purpose:<br />

• Increased service productivity and efficiencies<br />

• Reduced unnecessary costs<br />

• Increased strategic control over instructions received<br />

• Leveraged expertise of services<br />

Noko Maimela Incorporated is committed to Broad-Based<br />

Black Economic Empowerment (B-BBEE) in South Africa<br />

and will continue to make improvements to our policy<br />

strategy on an ongoing basis. Noko Maimela Incorporated<br />

has been awarded a Level 1 accreditation in line with the<br />

B-BBEE Codes of Good Practice, further demonstrating<br />

our commitment to continue improvement and making<br />

a visible difference in South Africa.<br />

Noko Maimela Inc seeks to develop a diverse workforce<br />

and achieve equality at all levels of its operations through<br />

a holistic approach. This will incorporate effective<br />

recruitment, promotion and succession planning, and<br />

effective diversity management.<br />

Noko Maimela Incorporated is 100% black-owned<br />

and employs 29 females and 33 youths. Noko Maimela<br />

Incorporated prides itself on being a wholly black<br />

owned law firm that has qualified in various disciplines.<br />

This diversity has enabled us to stand out as a multidisciplinary<br />

institution that makes us a one-stop legal<br />

services centre.<br />

NOKO MAIMELA ATTORNEYS | 163 Marone Street, Burgersfort 1150 | PO Box 2041, Burgersfort 1150<br />

Cell: 082 969 0049 | Fax: (013) 231 7481 | www.nokoattorneys.co.za | info@nokoattorneys.co.za<br />

Our diversity<br />

ensures we<br />

stand out<br />

as a multidisciplinary<br />

institution<br />

and a onestop<br />

legal<br />

services<br />

centre<br />

PROFILE


TECHNOLOGY<br />

Operational excellence<br />

in information security<br />

management<br />

The adage “knowledge is power” is more apt today than ever before. Information is the currency of today’s<br />

corporations, and protecting that information is of paramount importance – a company’s reputation,<br />

strategic relationships and competitive advantage all depend on it. What are organisations doing to ensure<br />

that they are efficiently, yet effectively, securing their data?<br />

Alack of clarity about how to operate efficiently<br />

means that many companies are wasting<br />

critical resources in lower-priority areas,<br />

resulting in insufficient resources to do the<br />

critical work of protecting the crown jewels of<br />

the company – their information and intellectual capital.<br />

The leaders in information security understand that<br />

their most valuable information assets are the potential<br />

value that is at risk; the nature and source of threats;<br />

the cost of introducing measures to monitor, detect,<br />

prevent and react to information security threats; and<br />

how to use their resources – people, technology, time,<br />

money – most efficiently to achieve their information<br />

security objectives.<br />

While information security practices are improving<br />

across the corporate world, few companies have<br />

implemented a model that successfully protects<br />

them while doing so in an efficient manner. Existing<br />

international technical standards and frameworks<br />

are available as guidelines for managing information<br />

security, yet most fail to address how to do so efficiently.<br />

_____ __ ___ __ _ _ _ _ _ _ _ __<br />

While benchmarking the competition<br />

can help find new solutions, merely<br />

copying other firms’ strategies<br />

can be ineffective, since good<br />

information security management<br />

is driven to a large extent by a<br />

company’s business characteristics<br />

___ __ ___ __ _ _ _ _ _ _ _ _ _<br />

THE GOLDEN RULES<br />

Efficient information security requires broad, crossbusiness<br />

collaboration that engages the whole<br />

company. It requires teamwork, decisive leadership,<br />

effective communication and a culture of continuous<br />

improvement. Only then can a company mitigate the<br />

information security risks it faces as part of its daily<br />

business operations.<br />

1. Protect your assets according<br />

to the value at risk<br />

Protecting every piece of data is cumbersome and<br />

inherently inefficient. Rather, companies need to<br />

classify their data based on the level of importance,<br />

create a security architecture, and set security policies<br />

and protection measures for each of these levels. This<br />

___ __<br />

While information<br />

security practices<br />

are improving across<br />

the corporate world,<br />

few companies have<br />

implemented a model<br />

that successfully<br />

protects them<br />

while doing so in an<br />

efficient manner.<br />

22 | www.opportunityonline.co.za


TECHNOLOGY<br />

www.kearney.com<br />

involves not just assessing the data type and content,<br />

but also who has access to the data and the type of<br />

authentication needed to view the data.<br />

Classifying and protecting data requires an<br />

understanding of the type and source of threats faced<br />

by organisations. Generic attacks target almost all<br />

company data and are commonplace, and security<br />

measures are usually readily available for most of these<br />

attacks. Targeted attacks, on the other hand, are geared<br />

toward a particular organisation and often a particular<br />

data type. Attackers in these types of events tend to put<br />

a lot of effort into them; when successful they can have<br />

a greater impact on the organisation.<br />

2. Turn your information security department<br />

into a business-focused service provider<br />

Similar to IT service management, the information<br />

security department can create a service catalogue<br />

that addresses the needs of the individual business<br />

departments and hence will be easy to understand.<br />

The use of those services will mostly be driven by<br />

regulations and security policies; some could even be<br />

mandatory. A non-exhaustive list of examples includes:<br />

• Providing a secure environment to a business<br />

application managing strictly confidential data<br />

• Third-party security audit<br />

• Security consulting to business projects<br />

• Execut i n g annual information security<br />

management systems (ISMS) cycle: reviewing risk,<br />

measures and implementation planning<br />

• Securing access to public cloud-based services<br />

• Penetration testing and business impact analysis<br />

• Awareness campaigns and staff training<br />

At its core, information security is an extension of<br />

the business – and the information security department<br />

should provide security services relevant to the<br />

business. One way it can achieve this, is by acting as<br />

a service integrator, combining internally provided<br />

services with those delivered by various external<br />

service providers. Setting up information security as a<br />

shared services centre means that costs are allocated<br />

based on usage, rather than being rolled into the<br />

corporate overhead, as is common.<br />

When these services show up in each business<br />

department’s budget, the benefit is not only transparency<br />

but also a more efficient use of resources. The objective<br />

of the shared service centre is to recover the cost of<br />

providing services through optimum service pricing.<br />

3. Ensure buy-in from top management<br />

If there are intermediate layers in the reporting<br />

structure, they should improve board understanding of<br />

information security issues and increase transparency<br />

rather than obscure it. There are several ways<br />

senior leadership can underscore the importance of<br />

information security management.<br />

4. Establish an information security<br />

roadmap with a balanced budget<br />

Every corporation needs to understand its current<br />

security posture; align its information security<br />

objectives with its business strategy, goals and value at<br />

risk; and then establish a strong information security<br />

strategy with a clear and shared roadmap.<br />

This strategic roadmap and its supporting budget<br />

should be regularly updated in response to threats and<br />

changes in the business environment. When security<br />

needs are expressed in financial terms, the board and<br />

management will be more inclined to pay attention.<br />

Creating a budget to maintain and improve<br />

information security capabilities is no easy task. Most<br />

information security departments operate under very<br />

tight financial constraints. To complicate matters,<br />

future needs are uncertain: every year there are new<br />

threats and vulnerabilities, new technologies, and often<br />

new regulatory requirements. Companies need to walk<br />

the line between overspending and underspending,<br />

within the context of their risk appetite.<br />

Companies need to shape their budgets based on<br />

business requirements. The chief information security<br />

officers (CISOs) we spoke with confirmed this view. Twothirds<br />

say their organisations make allocation decisions<br />

based on the requirements for planned projects (bottomup<br />

approach), while one-third said allocations are a<br />

percentage of the IT budget (top-down approach). Most<br />

CISOs whose organisations used a top-down approach<br />

felt a bottom-up approach was preferable.<br />

However, neither of these approaches incorporates all<br />

of the costs of information security management. For<br />

example, there are additional costs incurred by various<br />

departments that are related to information security.<br />

Therefore, to measure efficiency, information security<br />

costs in each of the following budgets need to be taken<br />

into account:<br />

• Direct. This budget is usually directly owned by<br />

the information security department and covers a<br />

variety of areas, from operational activities to risk<br />

management, governance and compliance.<br />

• Indirect. This budget is usually owned by either the<br />

IT department or one of the business departments.<br />

It includes the additional costs incurred as a result<br />

of information security policies and requirements<br />

• Emergency. This is usually handled by senior<br />

executives, and funds can be tapped in the event of<br />

a breach or incident. The strategies for dealing with<br />

emergency funds vary widely across companies;<br />

___ __<br />

At its core,<br />

information security<br />

is an extension of the<br />

business – and the<br />

information security<br />

department should<br />

provide security<br />

services relevant<br />

to the business.<br />

www.opportunityonline.co.za | 23


TECHNOLOGY<br />

while some CISOs increase the direct budget for<br />

worst-case scenarios and shift funds based on the<br />

needs of the businesses, others create an entirely<br />

separate and dedicated budget for emergencies.<br />

It is also important to separate the internal<br />

information security budget from those covering<br />

product-related information security. In companies<br />

with large product divisions, these budgets are often<br />

handled by a separate team altogether, ensuring a clear<br />

demarcation of resources and responsibilities. Also,<br />

in that case, each will have direct and indirect budgets.<br />

A best-practice budget is further divided among<br />

preparation, prevention, detection and reaction<br />

measures, with greater emphasis placed on early<br />

detection and mitigation versus prevention. The budget<br />

should be updated annually – with potential mid-year<br />

adjustments driven by unexpected events – rather<br />

than simply projected forward, to take into account the<br />

financial impact of past incidents and previous security<br />

investments, as well as changes in the threat landscape<br />

and new protection measures.<br />

_____ __ ___ __ _ _<br />

Human attitudes and<br />

behaviours, which<br />

are a reflection of the<br />

organisational culture,<br />

are a critical element<br />

of corporate<br />

information security<br />

___ __ ___ __ _ _<br />

5. Use stress and penetration tests periodically<br />

Periodic stress tests, also called wargaming, are<br />

designed to assess the potential business impact of<br />

attacks. These tests can help companies identify the<br />

gaps in their capabilities and can serve as the basis<br />

for a remediation plan, including changes to policies,<br />

technologies, or even team roles and responsibilities.<br />

A specific way to stress-test a company’s security<br />

infrastructure is via penetration testing, which uses<br />

realistic attack scenarios and vulnerabilities, both<br />

technical and non-technical. The results indicate where<br />

investment can create an immediate impact.<br />

6. Go beyond benchmarking your<br />

peers: cooperate with them<br />

The respondents in our survey agree that finding<br />

universally accepted key performance indicators (KPIs),<br />

common in functions such as finance and operations, is<br />

nearly impossible in information security. In any case,<br />

while benchmarking the competition can help find<br />

new solutions, merely copying other firms’ strategies<br />

can be ineffective, since good information security<br />

management is driven to a large extent by a company’s<br />

business characteristics.<br />

7. Automate processes and functions<br />

Leading companies stay ahead of the pack by using<br />

tools that fully or partially automate security-related<br />

functions and processes. AI, machine learning, big<br />

data, behavioural analytics and the like are key trends<br />

in the security solutions market.<br />

8. Enlist your employees in the<br />

fight against breaches<br />

When asked about the most vulnerable aspect of<br />

information security management in an organisation,<br />

one banking CISO said, “The weakest part is always<br />

human.” Human attitudes and behaviours, which are<br />

a reflection of the organisational culture, are a critical<br />

element of corporate information security.<br />

To increase information security effectiveness,<br />

mandatory training and awareness campaigns are<br />

imperative. Vanessa Hanke, director of global security<br />

policy and standards at SAP, said: “You can have as<br />

many standards as you want, you can have as many<br />

technological checks, but awareness among the<br />

workforce remains critical.”<br />

The goal is to create a culture where employees serve<br />

as a source of information security intelligence and<br />

support. Communicating about information security<br />

policies in a way that relates directly to their work or<br />

personal lives can significantly increase the number of<br />

incidents reported by employees, as well as the quality<br />

of feedback provided by the business.<br />

___ __<br />

To increase<br />

information security<br />

effectiveness,<br />

mandatory training<br />

and awareness<br />

campaigns are<br />

imperative.<br />

24 | www.opportunityonline.co.za


ENERGY<br />

BUSINESS<br />

ON THE RISE<br />

Owned and managed by Ntombekaya (Ntombie) Nonxuba, Rise Uniforms is<br />

a manufacturer and supplier of high-quality uniforms, corporate wear<br />

and medical PPE.<br />

Based in Philippi, Cape Town, they manufacture<br />

locally as per client specifications and supply<br />

nationally. In operation since 2007 and formally<br />

registered in 2010, the company has an<br />

established track record of consistently supplying<br />

uniforms to well-known brands such as Pick n Pay and<br />

Boxer superstores.<br />

Beyond simply meeting a product need, Rise Uniforms<br />

is 100% black female-owned and currently employs 52<br />

people from the township. With a strong desire to see<br />

transformation in the Philippi area, Nonxuba deliberately<br />

chose this location for the production facility and offers<br />

a significant number of employment and business<br />

opportunities in an area that has a staggering 38%<br />

unemployment rate. They also offer training opportunities<br />

to groups of women.<br />

EVER-INCREASING CAPACITY<br />

Rise Uniforms has the necessary technical expertise,<br />

capacity and know-how to deliver on immediate<br />

increases in volumes from the market. Having been<br />

selected as a beneficiary of the Sanlam Enterprise and<br />

Supplier Development Programme, which is designed to<br />

assist companies to embark on their next growth phase,<br />

a professional mentor was assigned to the business and<br />

in 2017 the company increased its production plant from<br />

154m 2 to 504m 2 to supply Boxer superstores.<br />

Over the years, the company has improved its<br />

production processes by investing in state-of-the-art<br />

production machinery. In 2019 they acquired embroidery<br />

machines, a screen-printing machine, an eyelet<br />

buttonhole machine and other complementary machinery.<br />

More recently the company also acquired machinery to<br />

enable the production of medical PPE (three-ply surgical<br />

masks). The company has the necessary capability and<br />

capacity to accommodate additional sizeable orders and<br />

can comfortably increase production.<br />

Their product range includes:<br />

• Medical supplies – PPE This includes surgical gowns, isolation<br />

gowns, surgical masks, theatre gowns and two types of coverall.<br />

• Golf shirts Rise Uniform’s various golf shirts and shirts<br />

include crew-neck T-shirts, bird’s eye golfers, plain golfers and<br />

pique knit golfers (both short and long-sleeved), V-neck T-shirts,<br />

and Lacoste golfers.<br />

• Bottoms The corporate wear bottoms range includes straightleg<br />

chino pants for men and women, as well as chef pants.<br />

• Winter wear This includes zip cardigans,<br />

ladies’ cardigans, sleeveless jerseys and a<br />

long-sleeve classic jersey.<br />

• Winter jackets This range covers loose-fit<br />

and slim-fit jackets in varying weights.<br />

• Conti suits Rise Uniforms manufacture<br />

conti suits as well as security shirts.<br />

• Schoolwear This includes a short-sleeve<br />

uniform with buttons at the front.<br />

• Workwear This range covers nurses’<br />

blouses, cleaners’ blouses, short-sleeve chef<br />

jackets for men and women, aprons, lab coats<br />

and security uniforms for men and women.<br />

• Hooded tops In addition to hooded fleece<br />

tops, Rise Uniforms make crew-neck fleece<br />

tops, zip sweaters, track tops and pants and jumpsuits.<br />

• Hooded dresses This includes hooded and sport dresses and<br />

fleece skirts.<br />

• Formal shirts Formal shirts are manufactured<br />

both in short- and long-sleeved styles.<br />

• Traditional shirts These shirts include a<br />

contrast Chinese collar and button stand.<br />

If its current trajectory is anything to go by,<br />

Rise Uniforms is well on its way to achieving its<br />

vision of being a recognised home name brand<br />

nationally and in the rest of Africa; and attaining<br />

its mission to be a brand of choice, being profitable<br />

and offering high-quality products to clients.<br />

PROFILE<br />

www.opportunityonline.


TRANSPORT<br />

How to make PUBLIC TRANSPORT<br />

an attractive OPTION<br />

in your city<br />

Successful public transport is essential for any transport sector emissions reduction strategy.<br />

It is a public good, delivering benefits for transport efficiency, pollution reduction, the local<br />

economy and social inclusiveness. To make public transport an attractive and everyday choice for<br />

residents, cities must design the service well, and overcome physical and cultural barriers.<br />

High-quality public transport services are<br />

reliable, frequent, fast, comfortable, accessible,<br />

convenient, affordable, safe and serve routes<br />

for which there is demand. This article introduces<br />

the essential infrastructure, service<br />

considerations, network planning and public messaging<br />

needed to realise public transport’s full potential.<br />

UNDERSTAND EXISTING SERVICE QUALITY<br />

TO INFORM UPGRADE DECISIONS<br />

The core considerations for analysis are:<br />

• In-demand travel routes (including journeys<br />

currently taken by car)<br />

• Existing service frequency<br />

• Existing service capacity<br />

• Journey speeds<br />

This analysis should inform decisions such as where<br />

new bus routes should go, or how many buses should<br />

operate on them at different times of the day. Analysis<br />

should be ongoing to enable the public transit network<br />

to develop alongside other changes in the city – too<br />

often routes and services remain static.<br />

Cities can benefit from modern technology and<br />

software, such as GPS and automatic fare collection<br />

systems, which make it easier and cheaper for transit<br />

planners to harness rich data. Cities should complement<br />

quantitative data with nuanced qualitative data about<br />

users’ public transport experience.<br />

RAISE REVENUES, SEEK PUBLIC AND PRIVATE INVESTMENT<br />

AND BE PREPARED TO SUBSIDISE OPERATIONAL COSTS<br />

In large cities, mass transit options such as metro, light<br />

rail transit (LRT), trams and bus rapid transit (BRT) are<br />

the most efficient and sustainable ways to move large<br />

numbers of people across the city.<br />

Building dedicated bus lanes for BRT and<br />

improvements to bus service frequency can usually be<br />

implemented relatively quickly and cheaply, compared<br />

to other forms of mass transit. However, large physical<br />

infrastructure projects – particularly rail and metro<br />

– are expensive, politically complex and usually take<br />

many years to be planned, financed and implemented.<br />

Therefore, mass transit needs to be integrated into longterm<br />

transport and urban development strategies.<br />

By clearly laying out a programme of intended future<br />

transit investments, cities can build political coalitions<br />

behind projects, coordinate the multiple parties involved<br />

in planning and delivering them, and make it easier to<br />

secure financing from both government or private sources.<br />

THE MAIN FINANCING OPTIONS ARE: [1]<br />

• Public finance. Cities will usually require a combination<br />

of national, state and local funding sources<br />

to build public transit infrastructure. This includes<br />

municipal bonds or loans, for example. Loans and<br />

grants from national banks help to mobilise investment<br />

capital and improve the bankability of largescale<br />

projects.<br />

___ __<br />

The Gautrain is a<br />

world-class rail<br />

transport facility<br />

serving commuters<br />

in Gauteng.<br />

26 | www.opportunityonline.co.za


TRANSPORT<br />

C40 Knowledge Hub<br />

• Public subsidy. This is nearly always required to<br />

cover operational costs. The notion that a successful<br />

public transport system fully pays for itself through<br />

passenger fare revenues is a common myth. The<br />

fare and level of subsidy is a political decision;<br />

to set the fare, transit agencies need to calculate<br />

the actual cost of transporting a single passenger,<br />

and then incorporate social equity goals and<br />

other considerations. The required subsidy is the<br />

difference between the two. The fare set and the<br />

level of subsidy agreed or requested should enable<br />

the city to improve transport service quality rather<br />

than simply maintain current levels of service. [2]<br />

• Raised revenue. For example, from fares, road<br />

pricing, transport taxes, parking fees, land-value<br />

capture and other transport-related policy.<br />

• Private investment. This includes public-private<br />

partnerships and bonds.<br />

• Multilateral development banks. Developing<br />

country cities may be able to obtain financing<br />

support from multilateral development banks.<br />

Each of these instruments has many advantages<br />

and disadvantages, and their feasibility varies<br />

depending on the project type and local political and<br />

financial context.<br />

TAKE A WHOLE-NETWORK APPROACH TO<br />

PUBLIC TRANSPORT PLANNING<br />

Promoting a whole-network, intermodal approach to<br />

physical transit planning, fares and operations includes:<br />

• Physical planning. Bus and metro routes, as well<br />

as walking and cycling infrastructure, should be<br />

planned to intersect each other so that passengers<br />

can easily move from one mode to another to<br />

complete their journeys.<br />

• Integrated fares. Payment systems should be<br />

integrated so that passengers only pay once for<br />

trips that include multiple public transit modes.<br />

Smart ticketing systems automatically adjust<br />

the fare that is charged to take into account each<br />

passenger’s specific journey and travel frequency.<br />

• Integrated operations. Ideally, a single agency<br />

should be responsible for managing all public<br />

transport systems in the city. This allows for<br />

seamless intermodal integration and timetabling,<br />

smart ticketing and single apps for users to find<br />

information. London is a good example of this:<br />

Transport for London is responsible, either directly<br />

or through licences and franchises, for managing<br />

London’s metro, bus and tram (DLR and Tramlink)<br />

systems, city-wide cycling infrastructure, taxis<br />

and water buses, in addition to London’s Major<br />

Road Network (most smaller roads are managed<br />

by Borough councils).<br />

IMPROVE THE BUS TRANSIT EXPERIENCE THROUGH<br />

RELIABLE AND EASY-TO-USE SERVICES<br />

In many cities, bus networks are inefficient, overlapping,<br />

irregular, have hard-to-read route maps, unbalanced<br />

coverage of the city and differing operating hours.<br />

This is often due to their organic historical expansion.<br />

Nevertheless, these systems are widely used and hold<br />

huge potential. Cities such as Seattle, Houston, Barcelona<br />

and São Paulo have successfully invested in redesigning<br />

their networks and improving service standards by:<br />

• Optimising bus routes to minimise overlap<br />

and ensure coverage across the city in line<br />

with demand. Houston, in the United States, respecified<br />

their service after the LRT was put in<br />

place to reduce overlapping of these services and<br />

to ensure transit coverage in other areas of the city.<br />

This resulted in a 7% increase in ridership.<br />

• Designing an intuitive network and easy-toread<br />

bus map. Since 2010, Barcelona in Spain<br />

has maximised the design value of its grid-based<br />

road network to incrementally implement a<br />

bus network with vertical North-South routes,<br />

horizontal East-West routes and diagonal routes –<br />

an intuitive design that makes it easy and practical<br />

for citizens to use.<br />

• Providing high-frequency, reliable services.<br />

The bus network can be divided into main routes<br />

and local routes, with different frequencies.<br />

Bus routes on main city arteries and roads used<br />

for longer distance travel will require frequent<br />

service, at least every 15 minutes. This is the<br />

minimum frequency at which the service is usually<br />

considered good enough for travellers to turn up<br />

without consulting a schedule. On local routes, a<br />

___ __<br />

Automated ticketing<br />

is a key component of<br />

a modern commuter<br />

transport system.<br />

RAPID RESPONSE TO COMMUTER NEEDS<br />

The South African National Department of Transport has implemented<br />

a Bus Rapid Transport Strategy to ensure swift movement of large<br />

numbers of people between parts of a city in a quick and safer way.<br />

Twelve municipalities were selected to participate in the programme<br />

to introduce to tackle transport challenges in major cities, including<br />

the Rustenburg Rapid Transport system in Rustenburg in North West<br />

Province and Leeto la Polokwane in Polokwane, Limpopo.


TRANSPORT<br />

less frequent service may be sufficient, depending on demand<br />

and provided that the service operates punctually according to<br />

the timetable. São Paulo has implemented this dual-frequency<br />

network timetable for the night shift, increasing night time<br />

ridership by over 70%.<br />

• Building regular bus stops for easy access. In Barcelona,<br />

the maximum distance between transit stops in the new bus<br />

network is 350m. In Seattle, the bus network upgrade plan will<br />

increase the percentage of households within 800m of frequent<br />

transit routes from 43% in 2015, to 73% by 2040.<br />

______ __ ___ __ _ _<br />

In large cities, mass transit<br />

options such as metro, light<br />

rail transit, trams and bus<br />

rapid transit are the most<br />

efficient and sustainable<br />

ways to move large numbers<br />

of people across the city<br />

___ __ ___ __ _ _ _ _<br />

REALLOCATE ROAD SPACE TO BUILD PUBLIC TRANSPORT INFRASTRUCTURE<br />

Most cities’ streets are designed for private vehicles first. This spatial<br />

bias must be rebalanced for public transport to deliver the reliable,<br />

high-frequency service necessary to become a viable alternative.<br />

Reclaiming road space for public transport can be quick, low-cost<br />

and incrementally implemented, but must be part of a long-term,<br />

holistic process. This process includes:<br />

• Allocation of street space for street-level mass transit options,<br />

particularly BRT and LRT. Both typically require dedicated<br />

corridors and lanes.<br />

• Improved bus shelters, upgraded transit terminals and space<br />

surrounding those terminals, ensuring a comfortable transit<br />

experience from journey start to end, including in waiting areas.<br />

IMPROVE GOVERNANCE OF INFORMAL TRANSPORT SYSTEMS<br />

In many Global South cities, a large volume of passenger traffic is<br />

often handled by the informal public transport sector (paratransit).<br />

The vehicles are usually small – minibuses or converted vans –<br />

privately-owned and with little regulation.<br />

In these cities, alongside improving the city’s main bus system,<br />

transit agencies should seek to organise and improve regulation of<br />

privately-owned transit industry. Agencies can establish vehicle<br />

REFERENCES<br />

[1] Financing Sustainable Cities Initiative (no date) Bus Rapid Transit:<br />

Reliable, convenient and efficient public transit. Available at:<br />

http://financingsustainablecities.org/ [Accessed 26 February 2019].<br />

[2] World Resources Institute India Ross Center (no date) Bus Karo 2.0<br />

– Case Studies from India, Chapter 8.3 Public Transport Subsidies<br />

[3] Sustainable Transport Award (2019) Winners<br />

and service standards on procurement renewals, or establish new<br />

formal public-private contracts. The Rea Vaya bus rapid transport in<br />

Johannesburg, South Africa, is an example of this approach.<br />

IMPROVE LOCAL AIR POLLUTION BY SHIFTING TO ZERO-EMISSION BUSES<br />

Travel using diesel bus exposes riders to high levels of air pollution. [5]<br />

Renewing outdated and polluting bus fleets by shifting to electric<br />

buses reduces air pollution exposure for bus riders and on the<br />

city’s streets while providing a more modern and comfortable<br />

bus experience.<br />

DELIVER EFFECTIVE MARKETING CAMPAIGNS TO<br />

BREAK DOWN CULTURAL BARRIERS<br />

Transit agencies must work to overcome the common cultural<br />

barriers that discourage people from choosing public transport.<br />

These will differ between cities but include ideas that public<br />

transport is “only” for low-income people, or that it isn’t fashionable.<br />

Car manufactures and new private car-hire companies advertise<br />

their products and services using slick and intelligent public<br />

relations campaigns. Public transit agencies should do the same to<br />

improve the public image of their services, and increase ridership<br />

numbers and fare revenues. Marketing campaigns should highlight<br />

positive personal stories of how individuals have benefited by<br />

using public transit. They should also be aligned with a compelling<br />

branding strategy that gives the public transit system a clear and<br />

attractive public identity.<br />

MAKE USE OF NEW TECHNOLOGIES AND APPS<br />

Transit agencies can make use of new technologies, such as<br />

smartphone applications, to make their services more fashionable<br />

and easier to use. At the same time, it will improve data collection,<br />

user perception of the service and reduce operational costs. For<br />

instance, Dar es Salaam’s DAR City Navigator app provides users<br />

with real-time information on multiple transit modes, allowing<br />

travellers to plan journeys rather than simply hoping for the best<br />

when they set out for work. Bogotá’s Safetipin app, meanwhile,<br />

allows women to rate their perception of personal safety on the<br />

transit system. This geo-referenced data will then be used by the city<br />

to design and prioritise interventions to improve the transit system<br />

and other public spaces. [6]<br />

Cities can partner with the private sector to develop these<br />

services. The Citymapper app, for example, operates in 39 cities<br />

globally and uses mobile and open transport data to help locals and<br />

visitors navigate public transport systems.<br />

Attractive public transport is the backbone of transit-oriented<br />

development and an essential component of cities’ efforts to drive a<br />

modal shift away from private vehicle use.<br />

[4] Deutsche Gesellschaft fur Internationale<br />

Zusammenarbeit (2011) Negotiating the deal to enable<br />

the first Rea Vaya bus operating company<br />

[5] Environmental Research (2015) Urban air quality comparison<br />

for bus, tram, subway and pedestrian commutes in Barcelona<br />

[6] Transformative Urban Mobility Initiative (no date) Innovative<br />

mobility ideas can win up to 200k for realization<br />

28 | www.opportunityonline.co.za


AEROSPACE INDUSTRY<br />

SUPPORT INITIATIVE<br />

Powering growth of the South African aerospace, defence and<br />

marine manufacturing sectors by providing aid and support to<br />

make the industry competitive in global technology markets.<br />

(012) 841-2913 | www.aisi.co.za<br />

An initiative of the Department of Trade, Industry and Competition, managed and hosted by the CSIR


ENGINEERING AND CONSTRUCTION<br />

Survival<br />

strategy<br />

Forward-thinking engineering and construction companies are<br />

weathering the Covid-19 storm by rethinking their strategic choices.<br />

The pandemic is threatening many companies’<br />

survival, but for those with an eye on the future,<br />

Covid-19 has brought an opportunity to rethink<br />

their strategies. In fact, mining engineering and<br />

construction companies that make the right<br />

strategic moves now can lock in their survival not only<br />

during the pandemic but well beyond.<br />

Power has shifted away from economic powerhouses<br />

such as Europe to strong emerging countries such<br />

as China. Engineering service providers and plant<br />

equipment manufacturers that have traditionally been<br />

strong in the Western world will now need to adjust<br />

to meet their customers’ needs and contend with<br />

escalating global competition.<br />

The pandemic has added even more pressure. A<br />

global decline in the demand for raw materials has<br />

postponed or even cancelled some mining projects,<br />

creating a substantial competitive burden. Also, the<br />

tightening criteria for green investments are making it<br />

even more difficult to finance “dirty” projects, such as<br />

in the coal industry.<br />

Mining engineering and construction companies<br />

that want to survive these unprecedented times will<br />

need to begin by addressing a compelling question: Quõ<br />

vãdis? Where are you marching? The leaders will chart<br />

a clear path through the pandemic to sustainably and<br />

profitably grow for the future.<br />

FOUR STRATEGIES FOR SURVIVAL<br />

The right commodities and geographies<br />

Identify the ideal commodities and relevant geographies,<br />

and then align the organisation accordingly. Having a<br />

clear view of where to play is essential to optimising the<br />

effectiveness of market-facing sales resources.<br />

Covid-19 has had a major impact on demand and<br />

has shifted business priorities. While demand for<br />

commodities such as iron ore, coking coal, thermal<br />

coal and bauxite plummeted and warehouses across<br />

the globe stocked up, the demand for precious metals<br />

such as gold and silver skyrocketed. After years of<br />

strong growth, coal is stable for the short term but faces<br />

an uncertain outlook in the long term. Steeply rising<br />

emission standards around the world have chipped<br />

away at demand for thermal coal as an energy source,<br />

but the fundamental demand for metallurgical coal for<br />

steel production will remain steady.<br />

The growth rate of iron ore is also expected to<br />

remain stable thanks to the ongoing demand for steel<br />

for infrastructure and automotive companies. Copper<br />

is expected to grow with continued electrification and<br />

infrastructure investments. Key growth drivers are a<br />

continued shift toward renewables, electrical vehicles,<br />

and growth in developing countries.<br />

Africa is home to less than 1% of global commodities,<br />

spread over a fragmented playing field of many<br />

countries that are hard to do business with. Making<br />

matters even more challenging, China’s growing<br />

influence is shrinking Western players’ market access.<br />

Mining engineering and construction companies<br />

must address four strategic market-related questions:<br />

• Which raw materials are the best ones to focus on<br />

for the short term amid Covid-19 market shifts, and<br />

which commodities are best for the long term?<br />

• Which geographical regions and countries are the<br />

ideal playfields?<br />

• How can the portfolio be optimised for each region?<br />

• How can margins be protected and growth funded<br />

in a tough market environment?<br />

___ __<br />

Key growth drivers<br />

are a continued shift<br />

toward renewables,<br />

electrical vehicles,<br />

and growth in<br />

developing countries.<br />

30 | www.opportunityonline.co.za


ENGINEERING AND CONSTRUCTION<br />

www.kearney.com<br />

Help customers cope with a changing environment<br />

Because of the nature of the industry, capital<br />

expenditures will always be relevant. Past EBITDA<br />

will drive capital expenditures in the coming years. Be<br />

clear about which customers to pursue and how best to<br />

approach them.<br />

Having a good understanding of the financial power<br />

of existing and potential new customers is essential to<br />

setting the right commercial strategy and initiatives.<br />

Classifying customers and communicating this<br />

internally encourages the company to stay focused.<br />

However, this could also mean adjusting or eliminating<br />

customer interactions that don’t add value.<br />

Global sales organisations should mirror the client’s<br />

base and allow for a local presence close to the most<br />

important customers. Consider not only the big mining<br />

companies but also intermediates such as engineering<br />

companies (engineering, procurement and construction<br />

or engineering, procurement and construction management).<br />

Intermediates are independent service providers<br />

that support the big miners in early project phases (for<br />

example, an order of magnitude); they are technologyneutral<br />

and influenceable. A close customer relationship<br />

creates an informative advantage, which leading<br />

companies use to improve the quality of project offers.<br />

Mining engineering and construction companies<br />

must address four strategic customer-related questions:<br />

• What impact is Covid-19 having on customers’<br />

financial performance and stability?<br />

• Which customers are the right ones to go for, and<br />

how does the global commercial presence match?<br />

• What is the risk appetite to win deals?<br />

• What is the best way to build the right ecosystem<br />

of partners?<br />

Take advantage of the aftermarket,<br />

or improve your skills<br />

During the escalating complexity of large projects,<br />

mining companies pass on risks to their suppliers.<br />

Capitalise on the aftermarket, or improve your skills to<br />

cope with the new challenges of capital projects.<br />

Most mining companies face challenges in dealing<br />

with Capex projects. They report that 68% of capital<br />

projects are behind schedule, and 62% are above the<br />

original budget. As a result of trying to overcome this<br />

poor performance, most companies are following a<br />

similar strategy.<br />

Rather than developing skills to keep their projects<br />

on track, mining companies are changing their buying<br />

behaviours to close the gap in project management.<br />

In other words, they are pursuing one-stop solutions<br />

and passing the risk to their suppliers (the mining<br />

equipment providers). In their search for the supplier<br />

___ __ ___ __ _ _<br />

Africa is home to less<br />

than 1% of global<br />

commodities, spread<br />

over a fragmented<br />

playing field of many<br />

countries that are hard<br />

to do business with<br />

___ __ ___ __ _ _<br />

with the lowest risk of failing, they require the mining<br />

equipment provider to have references from similar<br />

projects. So it’s not only the company’s technical<br />

ability that is required to be competitive; it also needs a<br />

significant number of references to back up this ability.<br />

Mining companies are forcing their equipment<br />

providers to engage in construction activities, but many<br />

are not ready to take on the task. Equipment providers’<br />

traditional business model was the customised<br />

engineering design and supplying the required systems<br />

for a specific application. In many cases, the equipment<br />

provider would also step into a supervising role on the<br />

construction of its equipment on site. However, the<br />

provider would not assume complete responsibility<br />

for the construction process and all of its difficulties<br />

and risks. Traditionally not their core business, mining<br />

equipment providers often have poorly developed<br />

capabilities to manage large construction projects.<br />

Instead, if they must deliver turnkey solutions, new<br />

personnel must often be found quickly.<br />

Further decreasing the attractiveness of the project<br />

business for traditional equipment providers, mining<br />

Four strategies for survival<br />

___ __<br />

Having a good<br />

understanding<br />

of the financial<br />

power of existing<br />

and potential new<br />

customers is essential<br />

to setting the right<br />

commercial strategy<br />

and initiatives.<br />

Four strategies can help mining companies survive the Covid-19 pandemic<br />

www.opportunityonline.co.za | 31


ENGINEERING AND CONSTRUCTION<br />

companies have started to use low-cost competitors as<br />

a reference point for price setting. While those players<br />

cannot yet compete with traditional companies on the<br />

number of references, miners are seeing at what prices<br />

similar equipment could be provided, escalating the<br />

demand for tenders and negotiations. And now with<br />

Covid-19 triggering a drop in the number of projects,<br />

more companies are running to get a stake in a<br />

shrinking market.<br />

The combination of higher risk from turnkey<br />

solutions, significant cost pressure from low-cost<br />

players, and fewer market opportunities make<br />

traditional mining equipment providers view capital<br />

projects as an unprofitable business.<br />

To counteract the escalating risk and pressure on<br />

costs, many original equipment manufacturers (OEMs)<br />

are de-emphasising their project business (engineering,<br />

supply and construction of customised engineering<br />

solutions) in favour of providing off-the-shelf products<br />

such as mills and crushers. Successful OEMs generate<br />

a stable high-margin aftermarket business from these<br />

products. Key success factors for this business model<br />

are having a large installed base of equipment in highwear<br />

operations and being able to service the products<br />

quickly and efficiently.<br />

In addition to providing a stable aftermarket<br />

business, a large installed base of equipment serves as<br />

a credible reference and competitive advantage during<br />

tenders and creates an opportunity to learn from the<br />

performance of the installed equipment (machine<br />

learning-based maintenance). Given the need for a large<br />

installed base and a global network of service centres,<br />

it becomes clear that scale is essential to success in the<br />

product business.<br />

Players that are late to the game, which means they<br />

lack a significant number of references or those that<br />

don’t have the resources to establish a efficient service<br />

network to win in the off-the-shelf product business,<br />

have to face their dependence on the unfavourable<br />

“pure” project engineering business where there is no<br />

physical product or aftermarket service. Their success<br />

will hinge on a significant increase in capabilities to be<br />

able to cope with the changing environment.<br />

The most important skills for these players are the<br />

ability to develop cost-optimised designs and frontend<br />

loading of engineering resources to efficiently<br />

source required materials and smoothly manage onsite<br />

construction. This will allow them to compete with lowcost<br />

competitors.<br />

Mining engineering and construction companies<br />

must address four strategic questions:<br />

• What are the best technologies to bet on?<br />

• Which differentiating short-term and long-term<br />

factors can create a competitive advantage?<br />

• What are the required resources to possibly gain<br />

from the aftermarket?<br />

• What skills can attract a positive cash flow?<br />

Consolidate, or be acquired<br />

M&A activities create a growing scale of competitors. Be<br />

clear about your value proposition, market positioning,<br />

strengths, weaknesses, opportunities and threats.<br />

It’s better to have a clear strategy as opposed to<br />

opportunistic moves with no clear direction.<br />

Larger scale allows equipment providers to have a<br />

large installed base of equipment and to sustain a global<br />

network of service centres, both of which are vital to<br />

generating a stable high-margin aftermarket business.<br />

The recent M&A spike in the mining equipment<br />

industry is no surprise.<br />

Another reason for engineering solution providers to<br />

increase their scale is the diversification of risk that is<br />

inherent in single projects. Lastly, the relative impact<br />

of one poorly executed project on a player’s profitability<br />

decreases with scale.<br />

In another interesting trend, Chinese players are<br />

acquiring European companies to gain access to<br />

Western markets. As a result, Western players will<br />

face stiffer competition from China during tenders or a<br />

potential acquisition from a Chinese competitor.<br />

Covid-19 is causing economic and financial challenges<br />

for many players in the industry, which can be a good<br />

time to keep an eye open for potential acquisition targets<br />

Mining engineering and construction companies must<br />

address three strategic growth-related questions:<br />

• What are the strategic options – either organic or<br />

inorganic – to satisfy shareholders?<br />

• Which partners can help bridge the strategic gaps,<br />

and how can the company improve the perceived<br />

value to these potential partners?<br />

• Which attractive acquisition targets are struggling<br />

amid the pandemic?<br />

PUTTING STRATEGIES INTO PRACTICE<br />

Each set of questions in the four strategies comes<br />

with trade-offs that must be well understood before<br />

making any decisions. But the strategy is about<br />

more than deciding what to do. It’s also about clearly<br />

communicating what not to do.<br />

Defining the right strategies is a complex undertaking<br />

that requires deep outside-in market expertise as well<br />

as inside-out involvement from the C-suite and broader<br />

management. Management buy-in is essential to a<br />

successful implementation.<br />

___ __<br />

Be clear about your<br />

value proposition,<br />

market positioning,<br />

strengths, weaknesses,<br />

opportunities and threats.<br />

32 | www.opportunityonline.co.za


LOCAL TALENT,<br />

INTERNATIONAL IMPACT<br />

Providing our customers with technical and in-depth industry<br />

knowledge, products and services they need to ensure streamlined<br />

operations, AR Jones Engineering provides solutions and equipment<br />

to a diverse range of sectors, including the steel, oil and gas<br />

and maritime industries and to municipalities in South Africa.<br />

We specialise in the maintenance and repair of heavy-duty industrial equipment<br />

across sectors and source and supply premium OEM pumps and valves. We<br />

also advise companies on how to optimise processes in order to achieve<br />

energy efficiencies.<br />

Our workforce includes industrial and engineering specialists, electricians,<br />

fitters and welders. The capability, dedication and commitment of our people ensures that<br />

we always deliver the highest quality services to our customers.<br />

Maintenance and repairs of heavy-duty industrial equipment<br />

Our technical knowledge and in-house experience ensure that we are well-equipped to<br />

assist industry and municipalities in meeting the maintenance and repair requirements<br />

of their critical assets. We are skilled at sourcing and managing maintenance and repair<br />

teams and conduct this work on site. We also offer welding services for the oil and gas<br />

industry and have industry welding procedures certification (ASME IX).<br />

Source and supply premium<br />

OEM pumps and valves<br />

We have trusted relationships with<br />

premium suppliers of quality pumps<br />

and valves, and can advise on, source<br />

and supply the equipment needed<br />

by our customers for their effective<br />

operations. We are the appointed agents for the German manufacturer Wangen Pumpen,<br />

manufacturers of standard and customised progressing cavity and twin-screw pumps for<br />

the biogas, food and beverage, agriculture and wastewater treatment markets.<br />

Energy efficiency advisory services<br />

We advise companies on how to optimise their energy consumption. Our in-depth<br />

understanding of energy technology and solutions and our experience in the power<br />

sector ensures that we are well-placed to advise our customers on meeting their energy<br />

requirements and on improving the energy efficiency of their operations. We offer energy<br />

assessments on behalf of the National Cleaner Production Centre South Africa.<br />

info@arjones-engineering.com | www.arjones-engineering.com<br />

AR Jones is a Level 1 B-BBEE company<br />

and is ISO9001 compliant<br />

AR Jones Engineering was founded by<br />

Antonio Jones in 2016. Jones is a qualified<br />

chemical engineer (B.Eng, Stellenbosch)<br />

and a certified energy auditor, trained<br />

as a consultant for the National Cleaner<br />

Production Centre. He previously worked<br />

for Eskom and ArcelorMittal South Africa.<br />

Having worked his way up from the<br />

factory floor to management after<br />

successfully completing his engineering<br />

degree, Jones now has longstanding<br />

trusted relationships in the industry. He<br />

is passionate about entrepreneurship<br />

and is a business mentor, assisting small<br />

businesses in his community to succeed.<br />

ENGINEERING<br />

PROFILE


Come and explore the Diamond Fields,<br />

situated in the Frances Baard District,<br />

a place of wide-open spaces and arid<br />

natural beauty. The region is defined by<br />

the diamond rush of the 19th century;<br />

apart from its mining roots, the area<br />

has many more experiences to offer,<br />

including cultural attractions, the<br />

beautiful outdoors and agri-tourism.<br />

Nature lovers will feel at home, as<br />

there are several game farms and<br />

waterways in the region where visitors<br />

can spot endangered game species and<br />

a wonderful variety of endemic birds.<br />

WELCOME TO SOUTH AFRICA’S FABLED DIAMOND FIELDS<br />

SOL PLAATJE LOCAL MUNICIPALITY<br />

This municipality is named after the first secretarygeneral<br />

of the African National Congress, and<br />

writer, Solomon Plaatje. At the heart of Sol Plaatje<br />

Municipality is the bright metropolis of Kimberley,<br />

the capital city of the Northern Cape Province.<br />

Kimberley and its surrounds trigger the interest<br />

of different kinds of tourism enthusiasts, from<br />

leisure to adventure, history and art lovers.<br />

Enjoy an adrenaline-filled skateboarding session<br />

at the Kumba Skate Park, pop in at the Star of<br />

the West restaurant that is full of rich mining<br />

history or visit the Dornfield Nature Reserve<br />

for an ideal weekend getaway filled with birdlife,<br />

wildlife and attractive accommodation.<br />

PHOKWANE LOCAL MUNICIPALITY<br />

Phokwane embraces Hartswater, Pampierstad<br />

and Jan Kempdorp. Hartswater, labelled as an<br />

oasis on the edge of the<br />

Northern Cape, intrigues<br />

those interested in pristine<br />

landscapes, photographs<br />

and frequent stops. The<br />

area is home to Cotton<br />

SA, which offers an<br />

idealistic agri-tourism<br />

experience where visitors<br />

are familiarised with the<br />

production process of<br />

cotton and boasts with a<br />

variety of nuts and local<br />

wines. Phokwane also offers<br />

leisure activities, historical<br />

and natural attractions.<br />

LOCAL<br />

MUNICIPALITIES<br />

& ATTRACTIONS<br />

MAGARENG LOCAL MUNICIPALITY<br />

The name Magareng is a Setswana<br />

word meaning “The Middle” and<br />

is derived from the fact that this<br />

region is literally in the middle<br />

of the country. Warrenton is an<br />

agricultural town located 70km<br />

north of Kimberley on the Vaal<br />

River and is the administrative<br />

centre of the municipality. The<br />

area offers significant historical<br />

value along with pristine natural<br />

landscapes that include the<br />

Spitskop and Vaalharts Dams where<br />

water activities can be enjoyed.<br />

DIKGATLONG LOCAL MUNICIPALITY<br />

Dikgatlong is a Setswana word<br />

meaning “Confluence”, referring<br />

to the place where the Harts<br />

and Vaal Rivers flow into one<br />

another. The area is home to the<br />

site of the first alluvial diamond<br />

diggings in the region and is<br />

renowned for its excellent flyfishing<br />

spots and luxury game<br />

lodges. Visitors can explore the<br />

Barkly-West Museum which<br />

displays local geology, archaeology<br />

and the history of the town, visit<br />

the prehistoric Nooitgedacht<br />

glacial paving, which was forged<br />

250-million years ago and explore<br />

the Gong-Gong Waterfall and<br />

its pristine natural scenery.<br />

Frances Baard District Municipality<br />

Tel: 053 838 0911<br />

www.francesbaard.gov.za

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