Quarterly journal for business and industry in South Africa
NOV/DEC 2020 / JAN 2021 • ISSUE 95
Stop, listen and hear
our laureate leaders:
PUT THE NATION’S
Dr Mamphela Ramphele
Strategically located on the West Coast of Africa in Walvis Bay, Namibia,
Namdock is a leader in the West African ship repair market and offshore oil
and gas sector, having gained global recognition for its extensive dry dock
capacities and exceptional client service – even in the face of a global pandemic.
Namdock, or EBH Namibia as it was formerly
known, was founded in 2006 as a joint venture
with the Namibian government, represented
by the Namibian Ports Authority (NAMPORT).
Latterly, a shareholding was taken by a South
African company. In 2018, the South African company
relinquished all shareholding in the former EBH Namibia
when the foreign shareholding was transferred to the
EBH Consortium, a group comprised of prominent
Namibian business leaders. As a result, the organisation
became truly Namibian, with its shareholding held
entirely by NAMPORT and the EBH Consortium.
To reflect this new reality, it was decided to rebrand the
company as Namdock, a name that truly reflects its wholly
Namibian composition. With effect from 31 August 2019,
EBH Namibia changed its name to the Namibia Drydock
and Ship Repair Company Pty Ltd (Namdock). Despite
a drop in the global oil price and its negative knock-on
effect on the offshore repair industry between 2015 and
2019, a still-volatile global oil price, and the knockon
effect of the global Covid-19 pandemic in 2020,
Namdock and its three floating docks continue to
attract local and international clients. However,
there is more to Namdock’s success than a mere
service and efficiency; but also our inherently strong
relationship with our people and pride in our country,”
says Namdock’s Acting CEO Heritha Nankole Muyoba.
As such, Namdock enjoys the full support of its
majority shareholder, the Namibian Ports Authority
and, by extension, that of the Namibian government. By
reciprocation, Namdock fully supports Namibia’s Vision
2030 and the country’s sustained industrialisation drive.
The next major advantage that Namdock possesses is
that it is situated in Namibia. This country stands out on
the African continent as having a very stable political
dispensation, first-rate and efficiently functioning
infrastructure and a customs and logistics authority that
is user-friendly, corruption-free and swift in operation.
TOP DOCK FACILITIES
It is reported that while there are many ship repair
yards along the West Coast of Africa, in the main, should
a major component be needed, importing such an item
in Walvis Bay, Namibia,
the company prides
itself on its on-time
delivery and track
record of consistency
and reliability, making
Namdock a trusted
brand within the
sector. A projectorientated
holistic solutions to
meet all its clients’
NAMDOCK’S STRENGTH IS LOCAL
As a nation, Namibia is fiercely proud of its
indepen-dence, and is also strongly focused
on driving economic self-sufficiency and
industrialisation. “We have therefore adopted the
slogan ‘Our Strength Is Local’, which not only
encapsulates our operational ethos of excellence,
Aerial view of Namdock’s
three floating docks.
and having it delivered to the dockside at one of these
yards could take a month or two. By contrast, Namdock,
with the support of the country’s enlightened customs and
logistics system, is able to have similar components on the
dockside within three to four days.
In fact, with three fully operating and well-maintained
floating dry docks, Namdock has the capability to repair
and maintain vessels up to a size that would include
approximately 70% of the global shipping fleet. In addition,
Namdock has reduced its average turnaround time for
ship repairs from 16 days to an extremely impressive 12-
Namdock’s own facilities include three well-maintained
floating dry docks, seven cranes as well as fully-equipped
workshops for carrying out all aspects of marine repair
and maintenance. As Namdock is part of Namport, which
oversees the port of Walvis Bay, this allows Namdock
access to secure berthing space with the quayside depth
of 12m. In addition, Namdock has access to Namport’s
synchro lift, a facility that can accommodate vessels up to
2 000 tons displacement, 80m in length and 12m in width
overall. The synchro lift area has four 80m repair quays of
8m draft which Namdock uses for alongside-pier repairs
and maintenance. The large natural anchorage at Walvis
Bay has a 14m depth.
SERVICES AND TECHNICAL SKILLS
The removal of marine growth and re-coating of ships’
hulls is a key component of Namdock’s services. This not
only preserves the value of the vessel but also, by reducing
drag in the water, lowers its operating costs.
Namdock employs highly skilled trade professionals
who are dedicated and experienced in a wide variety of
trades, from rigging, piping and coating to fabrication,
carpentry, electrical and propulsion. Namdock’s trade
professionals are well trained to international standards.
In addition to Namdock’s fully equipped workshops
where all the above services can be carried out, the
company constantly works with a range of local highly
experienced and trusted subcontractors and suppliers,
many of the latter from renowned international OEMs.
Clients can therefore access every possible ship repair
service that they might need from Namdock, conducted
in a range of extensive and well-equipped dedicated
fabrication, propulsion, mechanical, electrical, valve and
carpentry workshops, to provide repair and maintenance
services for all potential requirements.
At Namdock, safety is always the prime and abiding
consideration. For this reason, safety awareness is integral
to Namdock’s management ethos, and forms part of its
day-to-day operations. As such, the company constantly
focuses on creating and enforcing safe and responsible
working conditions for all employees, suppliers and clients
through its safety processes, procedures, certifications
and ongoing training.
The Namdock team were charged with not only restoring the SKD Jaya
to seaworthy condition, but also ensuring that it was safe and fully
compliant with maritime legislation. This project involved the reactivation
of the SKD Jaya rig, a semi-submersible tender assisted drilling unit.
MARINE AND LAND-BASED DIVERSIFICATION
Namdock is currently in the process of diversifying
both in the maritime field and in the land-based heavy
engineering arena. In terms of its marine services, the
company has entered into the field of maintaining and
repairing submersibles and remotely-operated vehicles.
In terms of land-based heavy engineering, Namdock,
as Namibia’s largest engineering company, has the
facilities, design, project management and fabrication
skills to tackle projects of any magnitude.
“Marine engineering has to adhere to exceptionally
high levels of competency, and we would be pleased
to share this skill level with, for example, the coastal
mining industry in Namibia and our neighbouring
countries,” continues Nankole Muyoba.
“To sum up, at Namdock, we are globally competitive
while also proudly Namibian,” states Nankole Muyoba.
“Our company is a prized national asset, wholly-owned
by all-Namibian entities. With this in mind, Namdock
is sailing ‘full steam ahead’, and navigating a proactive
voyage forward which will benefit not only our valued
clients, our company and our staff, but also the people of
Walvis Bay, and Namibia as a whole,” she concludes.
Namdock is a highly
the private sector
and provides the
and local industry
with a full-house
capacity in all aspects
of ship repair and
Team work in action! Namdock's take on the popular Jerusalema dance 2020.
ISSUE 95 | NOV/DEC 2020 / JAN 2021
How will South Africa survive this year?
NEWS & SNIPPETS
What has been and what’s to come
THE START OF SOMETHING BIG
If the South African gas market is to take off and thrive,
significant drilling has to take place, says the new CEO
of Petroleum Agency SA, Dr Phindili Masangane
REFINING 2021: WHO WILL BE IN THE GAME
How do oil refineries survive and sustain profitability
in a volatile market?
HEAL OUR PEOPLE, HEAL OUR LAND
Busisiwe Mavuso and Dr Mamphela Ramphele
share their perceptions on how to transform South Africa
TWO TRUTHS ABOUT AFRICA’S AGRICULTURE
Transforming the agricultural value chain is central to any progress in Africa
OPERATIONAL EXCELLENCE IN INFORMATION SECURITY MANAGEMENT
What are organisations doing to ensure that they are securing their data?
HOW TO MAKE PUBLIC TRANSPORT AN ATTRACTIVE OPTION IN YOUR CITY
Introducing the factors needed to realise public transport’s full potential
Forward-thinking engineering and construction companies are weathering the
Covid-19 storm by rethinking their strategic choices
2 | www.opportunityonline.co.za
LEADERS IN CHEMICAL SUPPLY
ChemiCorp is one of the leading raw chemical suppliers
in South Africa.
Chemicorp understands the urgency at which mines
operate. We ensure we have stock available at all times.
FOOD AND BEVERAGE INDUSTRY
We supply chemicals of the highest quality suitable for the
manufacture of food products for human consumption.
ChemiCorp is a one-stop-shop for all your architectural
WATER TREATMENT CHEMICALS
ChemiCorp is well-positioned in the water treatment
business and technically geared to tailor-make solutions
to any water treatment requirements.
Our agricultural product department is one of the most
innovative. This is mainly due to our partnership with Dagutat
Science, a biological product manufacturer.
Covid-19 has exposed just how fractured South Africa’s democracy is,
and how unequal we are as a society. We need rational, pragmatic
choices from government, labour and business, says Busisiwe
Mavuso, CEO of Business Leadership South Africa, on page 14. And
so, in this issue of Opportunity magazine, we set out to offer practical
advice in the sectors that the pandemic has impacted most on.
The conventional wisdom of vertical integration as the ideal and sustainable
model for oil refiners is being challenged. Choosing the right operating
model and the required level of integration across the value chain will be
crucial for improving margins and sustaining profitability in the volatile oil
and gas market. Read more on page 12.
If the South African gas market is to take off and thrive, significant
drilling has to take place, says the new CEO of Petroleum Agency SA, Dr
Phindili Masangane. A major discovery has been made at a site south-east
of Mossel Bay called Brulpadda. Dr Masangane says, “The recent discovery
by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant
step in that direction.”
Agricultural transformation in Africa must build social cohesion, create
beneficial continental trade, provide a platform for global exports and, most
importantly, help generate millions of jobs while pulling subsistence farmers
out of poverty (page 18). Opportunity also looks at how we can improve
public transport (page 26) and the engineering and constructions sectors
We all know that it is time to transform South Africa; perhaps Dr Mamphela
Ramphele’s words (page 16) offer a place of where to begin: “Covid-19 has
created an urgent imperative to transform our inequitable society into one
governed by the values of ubuntu – that would help us understand that there
is no ‘I’ without ‘We’. An ubuntu value-based society, with citizens that are
liberated from the impositions of inferiority and superiority complexes, is
urgently needed. Such a society would be driven by healthy relationships with
self, family, community and wider society. Leadership that is self-liberated
would emerge to lead the rebuilding of our broken public institutions in line
with ubuntu values and the prescriptions of our Constitution.”
Editor: Alexis Knipe
Publishing director: Chris Whales
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Simon Lewis
Production: Lizel Olivier
Administration & accounts:
Printing: FA Print
Global Africa Network Media (Pty) Ltd
Company Registration No:
Directors: Clive During, Chris Whales
Physical address: 28 Main Road,
Postal address: PO Box 292,
Tel: +27 21 657 6200
Fax: +27 21 674 6943
No portion of this book may be reproduced without written consent of
the copyright owner. The opinions expressed are not necessarily those of
Opportunity, nor the publisher, none of whom accept liability of any nature
arising out of, or in connection with, the contents of this book. The publishers
would like to express thanks to those who support this publication by their
submission of articles and with their advertising. All rights reserved.
4 | www.opportunityonline.co.za
With more than 30 years of experience in the South African mohair and textile industry,
South African Mohair Industries Limited (SAMIL) Natural Fibres has a fully integrated
value chain including farming, processing, trading, yarn spinning and dyeing.
Opportunity sat down with Michael Brosnahan,
the CEO of SAMIL, to find out more about the
mohair and textile industry.
How do you view the short-, medium- and
long-term future for SAMIL and the mohair industry?
SAMIL and the mohair industry has suffered – and
continues to suffer in the short term – depressed trading
conditions due to Covid-19, but believe me, the mohair
industry is as strong and resilient as both the fibre itself
and the brave, industrious farmers who produce this
What are the biggest challenges caused by Covid-19?
In my view, the biggest challenges caused by Covid-19
are related to ensuring the health and safety of all our
employees while endeavouring to keep our business
going. We have put in place, sadly at not too small a
cost, all the measures required to keep our people as
safe as practically possible while we continue to supply
mohair to the world.
Have any opportunities emerged from Covid-19?
There are always opportunities, if you look hard
enough. The opportunities for SAMIL came through the
lockdown, as unbelievable as that may sound. During
the lockdown, crafters and knitters globally took refuge
in their art, some of them returning to their passion due
to the extra time on their hands. The demand for hand
knitting and crochet yarns increased dramatically, with
the spin-off, please forgive the pun, being that many
of the knitters and crafters have rediscovered their
passion and now make time in their busy schedules to
continue enjoying their hobby.
What was required for SAMIL to become Responsible
Mohair Standard (RMS) certified?
SAMIL is well structured and organised, so the upgrade
to RMS certified was relatively painless. This was due
mainly to the dedication of my staff, in particular Evert
Vermeulen, the head of Mohair Tops Trading Division who
spearheaded the task team on implementation. The detail
of what is required to become certified is contained in
the RMS guidelines available from the Textile Exchange.
What value does the RMS accreditation provide for
mohair suppliers, textile manufacturers, retailers
The RMS accreditation is critical to all associated
with the mohair value chain. The requirement for the
certification is driven by the new environmentally
consciousness consumer, who makes purchase
decisions not only on price but moreover on their
understanding of the ethicality of the manufacturing
process. They want to know that the goods they intend
to purchase have not harmed the environment in any
way. This concern extends further to the welfare of
the people producing the items and, in our case, the
treatment of the animals who have produced the raw
material for the goods.
_____ ___ __ _ _
The requirement for
the RMS certification
is driven by the new
___ __ __ ___ __ _ _
What are the prospects for RMS?
In my view, the RMS is not a fad, it is reality and it is
here to stay. Very soon, mohair that is not produced by
an RMS-accredited farmer will no longer be marketable.
Today’s young consumer is not prepared to purchase
goods that impact the world environment and, I am
sure, they will instil this value in their children.
Mohair is a renewable
that contributes to
the Karoo’s longterm
www.opportunityonline.co.za | 5
We don’t know,
How does South Africa come out of the three evils of a recession,
a ratings agency downgrade and the Covid-19 pandemic lockdown?
As we ended 2019, the business community
had laid plans for the New Year ahead, not
knowing what was coming. Covid-19 laid bare
our forecasting and plans for the road ahead.
Within months South Africa would
experience an unprecedented loss of jobs, businesses
closing and austerity measures that cut to the very bone
of economic activity.
Social distancing became a norm, wearing masks and
sanitising surfaces and hands is now a legal obligation
in public spaces. Who would have thought this was
coming just months earlier?
Over the past eight months, SACCI has witnessed the
damage within its own ranks. Our Trade Conditions
Survey, which has for many years served as a barometer
of the business community, lost some of the participants
to the severe economic climate. According to the latest
Quarterly Labour Force Survey Quarter 2 released by
Statistics South Africa on 29 September 2020, the South
African economy shed 2,2-million jobs.
Against this background, SACCI had to do something
to turn things around. We cannot rely on government to
pull the country out of this malaise so the SACCI Board
gave a directive that SACCI must filter this down to
grassroots level by implementing programmes of action
to assist our business sectors on a trajectory towards
economic growth and sustainability.
___ __ ___ __ _ _
We cannot rely on
government to pull
the country out of
this malaise so the
SACCI Board gave a
directive that SACCI
must filter this down
to grassroots level
___ __ ___ __ _ _
6 | www.opportunityonline.co.za
While we know that this is no easy task ahead, SACCI
decided that it is the only way in assisting government
to bring the economy back on stream and create jobs.
The SACCI Board decided that 11 work streams
should be created. The three fundamental areas raised
in the formulation of an action plan must be centred on:
Significant among these action programmes are
small business, mining, construction, manufacturing
The Terms of References were developed, and
support functions engineered from within SACCI’s own
membership and the SACCI team.
Leading experts from various business sectors,
institutions and academia have volunteered to give of
their time and expertise to help the country get back
on its feet.
This is a giant task but not impossible to achieve
as the commitment is solid, and the involvement has
been forthcoming as the people involved see this as
impacting at a granular level and hence they are keen
▲ ▲ ▲
___ ___ __ _ _
The road ahead will
take us all on a path
where hard decisions
will need to be made
___ __ ___ __ _ _
The directive is that milestones
will be set and reviewed regularly
to track progress and ensure that
the various workstreams remain
The road ahead will take us all
on a path where hard decisions
will need to be made. But, with
the quality of people committed
to this project, and the gravitas
that these people carry, we are
confident that changes will be
made to stimulate the economy
and our business community will
work together with government,
labour and civil society.
These partnerships will ensure
that the country’s economy grows
from a solid platform and will be more resilient to the
shocks of the past and future. By charting a roadmap,
we will ensure a positive path, and produce gains in
the sectors affected.
SACCI further believes that this will build the
confidence in the country to the extent that investors
will review their strategies and return to South Africa
as an investment destination.
We conclude with an extension of our encouragement
to government to remain firm in its commitment to root
out and deal with corruption that has blighted our public
sector and our business community. SACCI believes
these workstreams have the opportunity to raise the
hopes of all South Africans for a brighter future and
together we can turn our economy around.
www.opportunityonline.co.za | 7
Unlocking trade and transport
Botswana, Namibia, South Africa and beyond.
The governments of Botswana, Namibia and
South Africa, recognising the need to eradicate
poverty and place their countries on the path
of sustainable economic development and
growth, established the Trans Kalahari Corridor
Management Committee (TKCMC). This move was
influenced by the need to achieve the transport and
trade facilitation objectives as well as deeper regional
integration as espoused in the SACU, SADC and AUDA
– NEPAD Agenda. In 2007, the Trans Kalahari Corridor
Secretariat (TKCS) was established to coordinate the
functions and decisions taken by the TKCMC. South
Africa is the current chair of the TKCMC.
The objectives of the TKCMC are to simplify crossborder
transactions and customs operations along the
Corridor; facilitate the movement of goods and persons
on the TKC by simplifying and harmonising the
requirements and controls that govern the movement of
goods and persons with a view to reducing transportation
costs and transit times; integrate the spatial, economic
and transportation planning for the contracting
parties; promote deeper integration by harmonisation
of conflicting regulations and policies of the three
countries in line with the SADC Regional Indicative
Strategic Development Plan (RISDP); integration of
trade, transport, logistics and travel systems of the three
countries with the objective of providing quality services
at minimal costs, thereby increasing competitiveness of
the SADC and SACU region.
In 2016, a new strategic plan was developed with
a goal to have the TKCMC be the leading corridor in
trade facilitation to achieve socio-economic integration
and development. The strategy is underpinned by four
pillars which are organisational efficiency; border
management; stakeholder management; and safety and
security. The strategic objectives for the TKCMC work
programme include accelerating economic integration
and development; enhancing stakeholder capacity; having
a responsive border regulatory framework; as well
as improving border infrastructure, road safety and
security along the TKC, road infrastructure, stakeholder
relations and communication infrastructure.
The TKCMC work programme is a robust trade
facilitation programme that supports effective trade
facilitation and eventually lower trading costs. The
TKCMC is cognisant of the fact that transport operators
and traders choose their routes based on the performance
of the corridor, and these performance indicators
are the distance-related operating costs; travel time;
predictability of transit; reliability of services along the
corridor; safety and security as well as the “hospitability”
of the route. These are therefore paramount for the TKC
to remain a corridor of choice and thereby achieve its
vision of being a leading corridor in trade facilitation for
socioeconomic integration and development.
Covid-19 impacted the TKCMC work programme. Most
programmes could not be executed because negotiations
could not continue as the member states’ focus was on
addressing the spread of the coronavirus. Movement
on the corridor was also affected as borders were only
open for essential goods. However, as restrictions eased
all types of cargo could move. The TKCS is optimistic
that the downward spiral in growth and volumes due to
Covid-19 by all TKCMC member states and the region
will change for the better as countries ease their Covid-19
restrictions. This recovery will be influenced by:
• Regional integration (harmonisation of conflicting
regulations. Covid-19 has exposed this problem)
• Development of regional industrial policy (accelerate
the industrialisation with a focus to improve local
production capacity within the region)
• Innovation in the facilitation of trade and SMART
corridors (less human contact is required, virtual
queuing of vehicles at the borders, pre-clearance,
cargo and vehicles)
• Linking Africa to allow Africa to trade with Africa
• African Continental Free Trade Area (AfCFTA)
• Need to build back better with private sector as the
driving force. The resilience of the private sector
• Deliberate effort to support private sector empowerment
recovery schemes (youth and women).
8 | www.opportunityonline.co.za
News & snippets
Industry Industry insights insights from from the the past past quarter quarter
Volatility in in manufacturing
sector released by Statistics South Africa reflects
says says Steel Steel and and Engineering Engineering Industries Industries Federation Federation of of
Southern Southern Africa Africa Chief Chief Economist Michael Ade. The The
figures painted a worrisome annual trend as the
recession deepened amid the pandemic. Unadjusted
recession deepened amid the pandemic. Unadjusted
which which recorded recorded -30.6%, -30.6%, followed followed by by the the
steel, metals and and machinery sub-industries at at -11.7%. -11.7%.
Supporting the DRIVING South African SOUTH aerospace, AFRICA’S defence AEROSPACE and marine INDUSTRY manufacturing sectors
The Aerospace Industry Support Initiative (AISI) is a South
African government initiative with the specific aim of improving
the competitiveness of the local aeronautics, space, defence
and marine advanced manufacturing sectors.
The AISI takes its strategic direction from government’s
objectives with a specific emphasis on industrialisation of
technology and technology-based supplier development.
The Department of Trade, Industry and Competition
(the dtic) utilises the CSIR and its position in the National
System of Innovation (NSI) as an independent, strategic
directed R&D entity to give industry access to national
expertise and infrastructure in order to improve its capabilities
Established in in 2006, the the AISI AISI has has supported the the South South African African
industry both directly and and indirectly through interventions
implemented by by the the following programmes:
• Technology-based Technology-Based Supplier Development
• Industry Development and Technology Support
• Marine Manufacturing, Associated Services and and Other
Supplier Development Programme
• Supplier Sector Strategic Development Support
• Sector Coordination, Strategic Promotion Support
Initiatives and Awareness
See • Coordination, page 9 of this issue Promotion for
more and information Awareness about AISI
Building PPE capacity
Owned and managed by Ntombekaya (Ntombie)
Nonxuba, Rise Uniforms is a manufacturer and
supplier of high-quality uniforms, corporate wear
and medical PPE. Based in Philippi, Cape Town,
they manufacture locally as per client specifications
and supply nationally. In operation since 2007 and
formally registered in 2010, the company has an
established track record of consistently supplying
uniforms to to well-known brands such as Pick n Pay
and and Boxer superstores.
Beyond simply meeting a product need, Rise
Uniforms is is 100% black female-owned and
employs employs 52 52 people from the township. With a
strong strong desire desire to to see see transformation in in the Philippi
for the production facility and offers a significant
unemployment rate. They also offer training
opportunities to groups of women. Over the years,
opportunities to groups of women. Over the years,
Rise has improved their production processes and
Rise has improved their production processes and
built their production capacity substantially.
built their production capacity substantially.
Find us on www.chemicorp.co.za
OIL AND GAS
The start of
Light oil and gas condensate
discoveries could be a
game-changer for South
African oil and gas
If the South African gas market is to take off and
thrive, significant drilling has to take place, says
the new CEO of Petroleum Agency SA, Dr Phindili
Masangane. A major discovery has been made at a
site south-east of Mossel Bay called Brulpadda. Dr
Masangane says, “The recent discovery by Total and its
JV partners in Block 11B/12B (Brulpadda) is the first
giant step in that direction.”
Total’s first attempt to drill the Brulpadda Prospect
in 2014 was suspended before reaching target due to
difficulties experienced by the drilling rig in the harsh
deepwater environment. After an extensive review of
the challenging surface conditions, Total contracted
the Odfjell Deepsea Stavanger semi-submersible rig to
drill the Brulpadda-1AX re-entry well commencing in
The Brulpadda well was drilled in approximately
1 400 metres of water by the Odfjell Deepsea Stavanger
semi-submersible rig. The well targeted two objectives
in a deep marine fan sandstone system within combined
stratigraphic/structural closure. Following the success
of the main objective, the well was deepened to a
final depth of 3 633 metres and was successful in the
The well encountered oil pay and a total of 57 metres
of net gas condensate pay over two Middle to Lower
Cretaceous high-quality reservoirs. Core samples were
taken in the upper reservoir, and a comprehensive
logging and sampling programme was performed over
both reservoirs. The success at both the Brulpadda
primary and secondary targets significantly de-risks
other similar prospects on Block 11B/12B.
In March and April 2019, the operator acquired 570
square kilometres of 3D seismic with the Polarcus
Asima vessel. The first phase of 3D seismic covered
the Brulpadda discovery and the Luiperd prospect. The
fully processed 3D seismic dataset validates the direct
hydrocarbon indicators and thick reservoir development
The success at
both the Brulpadda
OIL AND GAS
at the main objective and illuminates the deep target,
confirming the large resource potential of the Paddavissie
Fairway. The 3D seismic also increases PASA’s confidence in
the sedimentological and structural interpretation and has
been integral in selecting the location for the next exploration
well on Block 11B/12B, Luiperd-1.
The joint venture partnership continues to analyse and
integrate the fully processed 3D seismic with the analysis of
the core samples and the modular formation dynamics tester
(“MDT”) samples. The core indicates a high net to gross in
the main objective with good intergranular porosity and
permeability. The pressure, volume and temperature (“PVT”)
analysis performed on the MDT samples confirmed the high
liquid yield in the main gas condensate zone of the main and
In July 2019, the operator of Block 11B/12B, Total, executed
a multi-well drilling contract with Odfjell Drilling for the
Deepsea Stavanger semi-submersible rig, the same rig that
drilled the Brulpadda discovery in February 2019. The rig
recently mobilised to South Africa from Norway.
In May 2020, the Block 11B/12B
joint venture received the fasttrack
2D seismic dataset from
Shearwater GeoServices Holding
AS for the 7 033 linear kilometre
2D seismic programme completed
earlier in the year on Block
11B/12B, where the Company
holds an effective 4.9% interest.
Initial interpretative work has
confirmed the Kloofpadda Play
Trend, which consists of several large and encouraging leads.
The Block 11B/12B joint venture expects the fully processed
2D seismic dataset in late August 2020 and will then begin full
prospect analysis for the eastern part of the block.
In June 2020, the Block 11B/12B joint venture received the
fast-track 3D seismic dataset from Petroleum Geo-Services
ASA (“PGS”) for the 2 305 square kilometres 3D seismic
programme completed earlier in the year on Block 11B/12B.
Initial interpretive work has identified some additional leads,
including a potential northern extension to the Luiperd
Africa Energy holds a 4.9% effective interest in the
Exploration Right for Block 11B/12B. The Company owns 49% of
the shares in Main Street 1549 Proprietary Limited, which has
a 10% participating interest in the block. Total as the operator
holds a 45% participating interest in Block 11B/12B, while
Qatar Petroleum and CNRI hold 25% and 20%, respectively.
“Further development of the discovery is highly dependent
on the success of this further drilling,” attests Dr Masangane.
“Possible development could see condensate being piped to the
PetroSA facility in Mossel Bay,” she adds, but these decisions
are ultimately up to the operator, Total, and its partners.
DR PHINDILE C MASANGANE
PHD CHEMISTRY, MBA, BSC. (MATHEMATICS & CHEMISTRY)
Dr Masangane was appointed as the CEO of the South African
upstream oil and gas regulatory authority, Petroleum Agency South
Africa, in May 2020.
Before then, Dr Masangane was an executive at the South
African state-owned energy company, CEF (SOC) Ltd, which is the
holding company of PASA. Dr Masangane was responsible for clean,
renewable and alternative energy projects. In partnership with private
companies, she led the development of energy projects including the
deal structuring, project economic modelling and financing on behalf
of the CEF Group of Companies.
Her responsibilities also include supporting the national government
in developing energy policy and regulations for diversifying the
country’s energy mix. In 2019, Dr Masangane was Head of Strategy
for the CEF Group of Companies where she led the development
of the Group’s long-term strategic plan, Vision 2040+ as well as
the Group’s gas strategy. From 2010 to 2013, Dr Masangane was
a partner and director at KPMG, responsible for the Energy Advisory
Division. In this capacity, she successfully led the capital raising of
$2-billion for the Zimbabwe power utility, ZESA/ZPC’s hydro and coal
power plants expansion programmes.
PASA has successfully attracted major explorers to South Africa
and facilitated the acquisition of many new large
seismic surveys and some exploratory drilling,
through a period affected by legislative
issues and a major oil price crash.
“PASA’s challenge is to ensure that both
international and local energy companies
see this value proposition with South Africa
and choose our country. In this low oil and
gas price environment, companies are inclined
to cut back on capital investments and we
need to partner with them to sustain the
momentum,” says Dr Masangane.
___ __ _
Dr Phindile C. Masangane
OIL AND GAS
Refining 2021: who
will be in the game?
To keep up with change, refineries will have to restructure, strategically reposition their assets, or leave
the market. With one in five oil refineries expected to cease operations over the next five years, choosing
the right operating model and level of integration will be crucial for survival and sustained profitability.
These stark prospects are among the findings of
a recent Kearney study of the global refining
market. In North America and Western Europe,
the current trend of refinery closings is expected
to continue, with one in five refining assets being
squeezed out of the market over the next five years.
Meanwhile, the boom in demand in Asia and the Middle
East will lead to substantial changes in capacity and
The conventional wisdom of vertical integration as
the ideal and sustainable model for refiners is being
challenged. Choosing the right operating model and
the required level of integration across the value chain
– for each asset and each region – will be crucial for
improving margins and sustaining profitability in a
volatile market. For assets that are not financially viable,
regardless of their model, a decision about whether to
exit will need to be made early on to prevent financial
losses later in the decade.
VALUE DRIVERS IN REFINING
In the face of such rapid regional and global change,
refiners need to re-examine what creates value in their
industry to ensure they capture the most value from
their asset portfolios. The value an asset generates
depends on factors related to input, output and the
Value related to input factors includes crude
fungibility, trading and hedging, energy imports and
blending components. Output value relates to the choice
of product and market sectors, for example, lubricants,
petrochemicals, specialities (aviation and marine), or
fuel and energy (domestic or industrial). Asset value
relates to scale and technology, the fiscal and regulatory
(regime) environment, supply chain management and
The value derived from each barrel of oil consumed
varies from day to day and over the long term, as does
the risk to that value. Risk factors relate to supply
and demand fluctuations and arbitrage, price and
time exposure, volatility and availability, political
and regulatory instability and uncertainty, and
interdependencies along the value chain.
In such a complex and changing environment,
refiners must be confident that they are participating in
the market most productively – ensuring that a refinery
asset has both the right flexibility and the ability to
capture multiple marketing options.
OPERATING MODELS FOR REFINERS — A DIVERSE PALETTE
Four principal operating models are currently in play
in the industry, with no single model dominating. The
picture is evolving constantly, as companies adopt
models they feel are best suited to the times. The
operating models can be defined briefly as follows:
• Upstream integration. A single source of crude oil
accounts for more than 50% of the upstream integrated
refiner’s supply; the crude source can be either equity
crude or a long-term contractual arrangement.
Adapting to local or
while making the most
of global synergies, is
the name of the game.
12 | www.opportunityonline.co.za
Refinery value drivers
OIL AND GAS
• Local or regional
• Pipeline or imports
• Multiple asset
Trading and hedging
• Gas to liquids
Source: A.T. Kearney analysis
Scale and technology
• World-scale or
• Distillation and
Fuel and energy
• Merchant only
• Export versus
• Specialist markets
• Brand equity
• Logistics infrastructure
• Working capital
• Which value chain
•Joint venture or
• Export versus
• Dedication of
• Ability to
• Operational flexibility
• Base oil plant
• Blending plant
• Merchant refiner. Lacking both upstream and
downstream integration, the merchant refiner has
the flexibility to react quickly to both crude and
downstream supply opportunities and to adjust
operations or integrate into a larger logistics hub.
• Downstream integration. Dedicated marketing
channels take more than 50% of the downstream
integrated refiner’s production. These trades are
secured either through equity or long-term contracts.
• Vertical integration. Fulfilling the requirements for
upstream and downstream integrated refiners at
the same time, the vertically integrated refiner can
capture value by making the most of advantages across
the value chain.
MAXIMISING VALUE: DIFFERENT STRATEGIES
FOR DIFFERENT REGIONS
In such a diverse landscape, there is no one-size-fitsall
approach to business. Adapting to local or regional
conditions, while making the most of global synergies,
is the name of the game. The only given in this shifting
landscape is that refining excellence is imperative in all
input, output and asset-related dimensions.
Eastern European and Russian refiners are investing
in technologies and scale to overcome the limitations of
their dated structures and to pursue asset excellence.
However, infrastructure and output issues around
the still-underinvested and not yet upgraded refining
technology landscape are hindering integration with
the local market and are favouring fuels export instead.
Asia Pacific has the highest activity in terms of
numbers of refineries opened and closed, even as small,
polluting and less efficient refineries are being closed
and world-scale state-of-the-art facilities are coming
online. In this highly attractive market, international
oil majors are becoming much more involved in joint
ventures to build petrochemical plants, attracted by
relatively high economic growth in many countries.
THE ONLY CERTAINTY: A REQUIREMENT FOR EXCELLENCE
We expect further significant upscaling in global
refining, which will result in divestment and closure of
lagging assets in North America and Western Europe.
The changing global supply-and-demand situation will
push Middle East refiners to intensify their partnering
with Asia Pacific players.
Meanwhile, more refineries in Asia Pacific – especially
China and India – will integrate with petrochemical
plants, as a combined build-or-buy reverse integration.
Changes in crude availability and discounts will affect
refining capacity and profitability of some players in
Companies can respond to these changes by choosing
among different operating models and methods of
value-chain integration. Each model has its strengths
and weaknesses; for instance, the pure merchantrefining
model ranges from vulnerable to high volatility
in absolute oil price.
For new investors, integration with a competitively
positioned upstream player or a secure downstream
business will be important. Deep integration of refining
with petrochemicals can add value but comes with its
complexity and economic factors..
The only given in this shifting landscape is that
refining excellence is imperative in all input, output,
and asset-related dimensions. The market gives no-one
a free ride, and it has become more important than ever
to manage risk exposure.
The value derived
from each barrel of
oil consumed varies
from day to day
and over the long
term, as does the
risk to that value.
www.opportunityonline.co.za | 13
Heal our people,
lead our land
Busisiwe Mavuso and Dr Mamphela Ramphele
declare that national interest must be placed
first. It is time to transform South Africa.
Covid-19 has exposed just how fractured South
Africa’s democracy is and how unequal we are
as a society. We need rational, pragmatic choices
from government, labour and business, says
Busisiwe Mavuso, CEO, Business Leadership
South Africa. “If this pandemic doesn’t make us, as
leaders, carefully think about how we sustainably
start to deal with our structural economic flaws, then
I don’t know what will.” Mavuso avers the 2020 economic
outlook was bleak with a projected 0.3% economic
growth. Unemployment data recently released a recorded
2.2-million job losses in the second quarter of the
year, and that the economy shrank simultaneously by
an annualised 51%.
South Africa is hampered in its response to the
pandemic because many citizens lack access to
running water, have no money for sanitiser, and live in
Countries that will bounce
back quickly are those
with a “diamond” economic
an 80% middle class.
“It is the middle class
that carries the economies,
not the rich,”
“The biggest ticking
time bomb in this country is inequality, which
undermines social stability, and means the quest of
attaining a sustainable and conducive environment
within which business should operate will continue to
be elusive. It is for this reason that, as business, we need
to be more intentional and deliberate about the role we
play in society.
“The question we need to be asking is what now,
where to from here, and what is required from each
of the social partners in moving the country forward.
All of our efforts need to be geared towards economic
recovery, and what the country needs right now is
rational, pragmatic choices to guide our actions.”
Mavuso acknowledged that government controls the
policy environment within which all operate. “We need
the government to come up with a president-led and
cabinet-backed plan that we can all get behind with
a common issue.” Nedlac partners had presented the
president with a proposed economic recovery strategy,
and “what is required now is clear and decisive
leadership from the top”.
Businesses can choose to work with fewer people,
or with more machines, to increase productivity. “A
great deal of cost is created by regulation. Employers
spend a great deal on labour disputes that end up in
the CCMA or court, a lot of production is lost to strikes,
and many employers sit with unproductive or even
destructive staff members because it is too difficult
Countries that will
bounce back quickly
are those with a
structure, with an
80% middle class.
“It is the middle
class that carries
not the rich,”
Let us agree that as a country we seem to
lack the political courage to address some
of the stringent labour regulations, and to
have an honest and frank discussion with
our labour constituents in this regard
to fire them.” An economy able to quickly replace
unproductive workers at minimal cost will be one that
employs many more workers, because on average they
will be more productive, and the all-in cost of hiring
them would be lower.
“Let us agree that as a country we seem to lack
the political courage to address some of the stringent
labour regulations, and to have a honest and frank
discussion with our labour constituents in this
regard. It is about time that labour came to the party
by working with business to preserve and create more
jobs. There needs to be serious consideration around
short time and amendment of some of the rigid labour
regulations.” [Short time is working fewer hours as an
alternative to retrenchment.]
“South Africa’s social injustice is business’ crisis
as much as it is the government’s crisis. It is our
crisis because, as a grouping that has levers to
economic power, we have a special responsibility
to work firmly towards this agenda. Let us agree,
as business, that some things are bigger than selfinterest
and the profit motive. And those are issues of
national interest that need to be elevated above all,”
“It cannot just be left to government to fix our
structural inequalities as a country because,
unfortunately for us, government’s failure is South
Africa’s failure. And South Africa’s failure is business’
failure. As the adage goes, show me a failed state, and
I’ll show you a failed nation.”
“Let us agree, as
business, that some
things are bigger
than self-interest and
the profit motive.
And those are issues
of national interest
that need to be
elevated above all.”
The Covid-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming our society into a
more equitable, resilient and prosperous democracy that promotes the wellbeing of all people and our planet. This call to
action was made by academic, businesswoman and political thinker, Dr Mamphela Ramphele, co-founder of ReimagineSA.
The greatest leaders in extraordinary times in
world history are not necessarily those who had
demonstrated their capacity to lead in normal
times, asserts Dr Rhamphele. “On the contrary,
leaders who rise to the demands of extraordinary
crises tend to be those willing to take the risk to be
creative, inventive and courageous. Such leaders
succeed because they dare to break from the known
to the unknown, from the familiar to the unfamiliar,
from traditional to non-traditional ways to open up new
pathways to more promising futures.”
LEADERSHIP IN CHALLENGING TIMES
Racism, sexism and inequity “that have reared their
ugly heads with a vengeance over the past few years”
are warning signs that unless we address these legacy
issues, future generations will be hampered by the
burden of these ghosts.
Corporate South Africa can lead the charge in this
healing work as businesses return to the workplace,
says Dr Ramphele. “There is an imperative to initiate
processes of deep conversation in safe spaces between
leaders, managers and workers about how to work
together to create a new normal in the workspace.
Healing conversations have to go beyond the wounds
of the past to embrace the fragilities in work, family,
community and public life that Covid-19 has laid bare.
“Critical, responsible and accountable citizenship
is a key success factor of stable societies across the
world. We now know that where there is trust between
people in the workplace, productivity, creativity and
LEADING THE EMERGENCE FROM POST-COVID EMERGENCY
Humanity is consuming 1.7 times the resources we
should, and the world is approaching a tipping point
on climate change. Protecting the future of human
civilisation and the wellbeing of our planet requires
dramatic interventions. These include human and
economic transformation, with a radical overhaul of
corporate governance, finance, policymaking and
energy systems towards greater transparency and
accountability. We need to address three obstacles:
• Shareholder- instead of stakeholder-driven business
• Finance used in inadequate and inappropriate ways
• Governance based on outdated economic thinking
and faulty assumptions
Enterprises need to listen to trade unions and
workers’ collectives, consumer advocates and others in
the rest of society. Corporate governance must reflect
stakeholders’ needs instead of shareholders’ whims.
Government assistance to business should be less about
subsidies, guarantees and bailouts, and more about
building partnerships. Strict requirements should be
attached to any corporate or state-owned enterprise
bailouts so that taxpayers’ money is used productively
and generates long-term public value.
“We need to reimagine and rebuild governance
systems from the local, provincial and national levels
and to strengthen critical citizenship to ensure that
we, the people, relentlessly demand accountability
in a responsible manner within the ambit of the law.
Destruction of public property in the name of public
anger and rage must end. Citizen accountability must
rest on taking ownership of these public assets and
www.opportunityonline.co.za | 15
_____ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Leaders who rise to the demands of extraordinary
crisis tend to be those willing to take the risk
to be creative, inventive and courageous
___ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _
needs to be complemented by severe punishment for
those who continue to be destructive.”
Dr Ramphele advocates robust plans for a transition
to renewable energy, with timelines towards zero
emissions. “We have much to gain by kick-starting
our economy through accelerating investments in
enterprises that promote regenerative economic
South African SMMEs are largely in survival mode.
We require nimble and integrative approaches that
collapse the bureaucracy of existing organisations into
a high-impact platform to identify and significantly
invest financial and business skills support, she says.
We need to move away from GDP as a measure of
progress. “GDP is an inadequate measure given that it
largely accounts for, and values, only consumption. GDP
does not consider the ecological costs in the production
of goods and services that have a major impact on the
wellbeing of people and our planet.”
Public services should be reimagined to ensure
high-quality, sustainable solutions. “The pernicious
tender system that has turned public servants into
administrators of interminable tender processes
needs to be ended.” Social and physical infrastructure
development must be driven by skilled personnel, with
capable leaders at local, provincial and national levels
to ensure that they can negotiate value for money for all
“We urgently need to transform and revitalise
infrastructure to kick-start our moribund economy. Wellplanned
and well-executed infrastructure development
programmes are the only guarantor of training
opportunities for the millions of young unemployed
people to become artisans and maintenance workers.”
A FAILING EDUCATION WHEN EXCELLENCE IS ATTAINABLE
Our education system is the best-resourced in Africa,
yet by all measures is among the worst performers
globally. In the 2018-2019 fiscal year, 16.5% of
government expenditure went to basic education;
overall, 20% of our national resources are spent on
basic and higher education annually, yet we have “a
hopelessly underperforming system that has failed
generations of young people since 1994”.
“It would be much cheaper to let go of all default
teachers, 50 years and older, with attractive packages.
We would then be able to hire young people from our
higher education and training system, who are assessed
to have the aptitude and commitment to become 21stcentury
teachers. In-service training of scores of young
people would enable us to reimagine and build a 21stcentury
Dr Ramphele concludes: “Covid-19 has created an
urgent imperative to transform our inequitable society
into one governed by the values of ubuntu – that
would help us understand that there is no ‘I’ without
‘We’. An ubuntu value-based society, with citizens
that are liberated from the impositions of inferiority
and superiority complexes, is urgently needed. Such
a society would be driven by healthy relationships
with self, family, community and wider society.
Leadership that is self-liberated would emerge to
lead the rebuilding of our broken public institutions
in line with ubuntu values and the prescriptions of
“We have much to gain
by kick-starting our
in enterprises that promote
More than beer
Flanders, the northern Dutch-speaking region of Belgium, has a lot to offer
South African companies that want to enter the European market.
Since the Middle Ages, Flanders was a textile
region, making tapestries and clothing. The
textile sector diversified into flooring products
from carpets to wooden flooring, technical textiles
and artificial grass. Flanders is now expanding
in new areas of expertise such as smart textiles and new
materials, where for example, microchips are integrated
in the textile fabrics.
In the golden Sixties, Flanders was successful in
attracting multinational chemical companies to the port of
Antwerp. The port is an ideal gateway to the international
markets and the European hinterland. The different plants
are interconnected with pipelines and connected with
other ports (such as Zeebrugge and Amsterdam) making it
a very efficient production location. Sasol of South Africa is
present in Flanders with a distribution facility in Antwerp.
Another wave of investments in the Sixties came from
the automotive sector. Today Volvo (XC40 model) and
Audi (E-Tron model) in the Brussels region have flexible
production plants. Flanders also attracts automotive
suppliers as well as truck and coach/bus manufacturers.
Volvo trucks has the largest manufacturing plant in Ghent.
New investments also stem from the pharmaceutical
sector. The pharmaceutical development started in
1953 with Dr Paul Janssen, who founded Janssen
Pharmaceuticals in Beerse. His challenge was to merge
pharmacology and chemistry knowledge: 80 medicines
were discovered in different fields, including Opiod
(Fentanyl – pain medication), Mikonazole (Daktarin
– antifungal medication) and Loperamide (Imodium –
diarrhea medication) to name a few.
Green biotech was introduced to Flanders by the
company PGS (Plant Genetic Systems) in 1992. The
founders, Prof Mantagu and Dr Jeff Schell, were the first
to develop plants resistant to insects, pests and herbicides
by genetically engineering the plants. Many of the corn,
cotton, yellow maize and soybeans currently available in
South Africa are GM (genetically modified) crops.
Medical biotechnology (red biotech) has developed
rapidly in Flanders, mostly at the five universities and
four academic hospitals for clinical trials. More than 140
companies have been formed over the years.
In the ICT space, Flanders is one of the worldwide pioneers
in nanotechnology (chip technology) thanks to the
InterUniversity Micro Electronics Center (IMEC), linked to
the oldest university of Europe: KU Leuven. IMEC expanded
its expertise in nanotechnology and chip technology
to application domains such as healthcare, smart cities,
mobility and manufacturing, logistics and energy.
Flanders is now on the forefront of high-tech research and
the digital economy. More than 120 companies have spun
off since IMEC was established in 1986.
The food-processing sector is well-established: the
beverage sector boasts 224 breweries, 1 000 types
of beers and the largest brewing company, ABInbev.
Chocolate production is the highest in Europe, but the
region also excels in the production of frozen vegetables,
fries and bakery products.
Flanders is strategically located in
the middle of Europe, making it an ideal
location for an European Distribution Centre
(EDC). More than 250 companies (including
Nike, Bose, Black & Decker, Volvo, Mazda,
Scania, Ikea, Ingram Micro, Greenspan and
Chiquita) selected Flanders as an EDC.
South African companies should consider
Flanders as an R&D location or distribution
hub for a variety of sectors. Flanders excels
in developing the “Triple Helix’’ (company: education:
government). Building your presence in Europe reduces
your dependence on the rand, your company becomes
part of the various ecosystems and you can tap into
qualified personnel and a broad range of incentives.
Trade and Investment
IMEC has 2 clean
rooms and is at
the forefront of
chip design and the
www.opportunityonline.co.za | 17
Two truths about
There are two truths today about African agriculture: significant progress
has been made, and there is potential for much more.
The progress has been quite impressive.
Agricultural production is up 160% over the past
30 years, far above the global average of 100%.
Eighteen Sub-Saharan African countries have
reached the Millennium Development Goals’
first target of halving the proportion of people who
are hungry. Country-level programmes, cross-border
initiatives and pan-African groups have all played
important roles in these advances.
Yet there is vast room for improvement. Africa
remains a net importer of food, although it has 60% of
the world’s uncultivated arable land. As its population
has doubled overall and tripled in urban areas in the
past 30 years, agricultural production and food security
have struggled to keep pace. Africa is the only continent
where the absolute number of undernourished people
has increased over the past 30 years.
Africa will have a population of two-billion by 2050,
and agriculture will be central to feeding all of those
people. Agricultural transformation must build social
cohesion, create beneficial continental trade, provide
a platform for global exports and, most importantly,
help create millions of jobs while pulling subsistence
farmers out of poverty.
AFRICA’S AGRICULTURAL TRANSFORMATION AT THREE LEVELS
Transforming the agricultural value chain at three
levels – farmer, market and cluster – is central to any
progress in Africa.
Smallholder farmers contribute up to 80% of Sub-
Saharan Africa’s food supply, according to the UN’s
Food and Agriculture Organisation, and Africa has an
estimated 33-million smallholder farms. Increasing
their capabilities would increase Africa’s output and
help solve Africa’s poverty and malnutrition.
Farmer-level transformation should seek to increase
yields and reduce post-harvest losses. It requires
granular-level interventions that form the basis for
sustained economic and societal success. Enablement in
areas like education, infrastructure, water management
and regulation is crucial as well. Public-private
initiatives can ensure capability-building support and
the development of structures in areas like financing.
Crop-specific government initiatives in certain areas,
depending on soil and climatological specifics, could
These initiatives can be facilitated by a pan-African
perspective in three ways:
• Best practice sharing.
Providing a best practice clearinghouse for farmer
associations and governments.
• Support of governments
Aiding governments in skills development and
coordinating cross-country initiatives.
• Public-private partnership initiatives
Creating a first “port of call” for large corporate and
institutional investors to ensure the effectiveness
and coordination of investments.
At regional and
market actors need
to create the markets
that allow the trade of
18 | www.opportunityonline.co.za
Farmers need access to markets to earn their fair share
of the profit pool in the value chain. Good markets,
in turn, provide food security for the population and
facilitate Africa’s agricultural self-sufficiency.
Making markets work is a supply chain infrastructure
and information issue. Governments and
private investors need to ensure that sufficient
roads, warehouses, processing facilities and other
infrastructure are in place to get products to
increasingly urbanising markets. Farmers need access
to information to deliver products to the markets that
offer them the best price. At regional and country
levels, government and market actors need to create the
markets that allow the trade of homegrown products.
Markets are often developed at country level, but a
pan-African strategy would include the best practice
sharing and public-private partnership support we
highlighted for the farmer level. Additionally, for
markets, removing trade barriers and inefficiencies
between countries and freeing up the traffic of
agricultural produce across Africa would significantly
boost the intra-African cross-border trade of produce.
_____ __ ___ __ _ _
Africa is a net importer
of food, although it
has 60% of the world’s
uncultivated arable land
___ __ _____ __ _ _
In this final, macro-level of transformation, Africa has
the potential to become a major agricultural player
globally, facilitating the export of its products outside
the continent. Cluster-specific initiatives typically focus
on product availability and production competence.
Dairy exports from New Zealand are one successful
example of macro-level transformation. Years ago,
the New Zealand Dairy Board created a platform for
best practice sharing among its members to improve
productivity and product quality and actively created
export markets for excess products. Some of the Dairy
Board’s activities became part of a new cooperative
called Fonterra – now one of the leading global milk
processors and dairy exporters, with roughly 22-billion
litres of milk produced annually. Fonterra also produces
more than two-million tons of dairy ingredients,
speciality ingredients and consumer products annually
– 95% of which is exported. This allows New Zealand to
punch above its weight in the dairy market.
Cluster-specific export initiatives like Fonterra should
be a government goal in Africa. From a pan-African
perspective, identifying sectors and coordinating
initiatives across countries are essential steps to a
A PAN-AFRICAN FRAMEWORK
Due to existing dynamics, African smallholders do not
yet benefit from best-in-class global farming practices.
They are often trapped in a vicious cycle that prevents
them from improving their productivity and income.
These farmers are, however, the fabric of African rural
societies. Their future success is crucial as Africa’s
population grows and urbanises.
Strategies are only as effective as the change they
bring about. Truly transforming African agriculture
at the farmer, market and cluster levels depends on
financing, government enablement and sustainability.
Financing will fund the improvements in the value
chain on both the micro (farmer) and macro (export)
levels. Government enablement means putting in place
the regulatory frameworks and structures that foster
a strong business environment – for example, giving
farmers title to the land they use and allowing them to
use that land as collateral for loans for investments that
can build. The development should become sustainably
effective through the close interaction of public
and private enterprises (for example, the African
Development Bank, international donors, or private
enterprises buying into the value chain).
SUCCESS FOR AFRICA’S AGRICULTURE
Governments must focus on improving the enabling
environment for local agriculture, particularly when
it comes to land rights, infrastructure, market access
and elevating women’s roles in society. Pan-African
institutions, such as the African Union, can help
develop cluster opportunities across the continent and
promote intra-African trade and best practice sharing.
The private sector can help by investing,
understanding that Africa’s potential for growth and its
untapped arable land offer huge opportunities despite
the risks. Public-private partnerships can unlock value,
as long as both sides share the onus of success.
No longer must Africa go hat-in-hand to feed its vibrant
and resourceful population. It can help its people feed
themselves, their villages, towns and countries. As scale
and quality develop, export markets from the continent
can flourish, leading increasingly not just to poverty
alleviation but wealth creation. As more inhabitants
see the promise of a better future in agriculture, many
more clusters will be developed, truly making Africa the
breadbasket that the world so desperately hungers for.
Africa has the
potential to become
a major agricultural
facilitating the export
of its products
outside the continent.
www.opportunityonline.co.za | 19
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Throughout the period of our existence, we have
demonstrated passion, knowledge and understanding
in the areas we chose to specialise in. We always
appreciate that the most important feature of human
relations is how you treat your clients. We can adapt
to every client’s needs and give dedication to each and
every client we serve, no matter how big or small.
Our professional and technical staff is committed to
ensuring that we deliver timeously on our promises. We
treat the client’s business as if it is our own. We believe in
bringing peace of mind to our client right from the start
and we put in as much effort and skill as it takes to sort out
our client’s problems. Therefore, our services are designed
to make a success of every client’s needs. We are willing to
go the extra mile, just for you, our Valued Client.
Please tell us about skills development and mentoring
at Noko Maimela Incorporated.
Noko Maimela Inc relies on highly skilled employees
to achieve its objectives. We value and therefore
seek to develop, nurture, maximise and manage the
development of such skills and competences.
We refuse to practice tokenism in our employment
and in this regard, we believe in strengthening our staff
from within and transferring knowledge and expertise
through mentoring and skills development. In this way,
we can retain and reward talent without abandoning
our principles and fundamental values.
Noko Maimela Inc currently recruits and hires most
of its employees from rural areas around Limpopo with a
view of nurturing the skills around those areas. We will
continue to recruit from these previously disadvantaged
areas as we think it is in the best interest of our country.
What measures do you take to ensure that staff
measure up to the company’s expectations of always
providing superior service?
We strive to achieve and maintain a high level of
service quality and work performance excellence and
apply several measures to ensure that our people,
professionals and support staff comply with our
expectations of superior product and service quality.
All work produced by candidates and junior attorneys
below the level of associates is supervised, monitored and
checked by the senior attorneys/director responsible for
overseeing the work. We have a number of procedures
and policies in place, which all professional staff members
must adhere to.
Our quality assurance policy aims to ensure that
quality-related problems are identified at an early stage.
We believe that issues should be resolved proactively
rather than reactively.
For each client, we appoint a senior attorney who
is primarily responsible for the relationship between
the firm and the client. The senior attorney’s role is
to ensure service quality and that the firm meets the
client’s expectation on turnaround times and level of
service delivery, and he or she will be assisted by a
team of candidate attorneys, professional
attorneys and support staff. The senior
attorney will maintain frequent contact
with the client and is expected to hold
regular and formal client meetings to
discuss and identify any service quality
problems so that improvements can
Please tell us about your Corporate Social
Investment outreach programme.
CSI is an investment in the community,
to create an environment that is safe,
healthy, educated, secure and conducive
to a better lifestyle. Noko Maimela Inc is
committed to improving the livelihood of
previously disadvantaged communities
through its CSI outreach programme.
Noko Maimela’s commitment will ensure
the sustainability of many previously
disadvantaged communities. Through
this commitment we also encourage our
employees to identify charities within
their communities in need of help.
We believe in
our staff from
Founder and CEO
20 | www.opportunityonline.co.za
BEST OF BREED
As the established leader in matters relating to legal services,
Noko Maimela Incorporated is well positioned to deliver excellence
in debt collection and legal services.
Our focus is on the standardisation and implementation
of best-of-breed methodologies. Noko
Maimela Incorporated strives to maintain and
provide state-of-the-art legal services with
With an entrepreneurial spirit and document-centric
expertise from traditional office technology, Noko Maimela
Incorporated has moved rigorously towards a process
mindset, and is today capable of presenting a new value
proposition built on a managed legal services model.
Among the services that Noko Maimela Incorporated
offers are the following:
• Litigation and claims (Magistrate and High Courts,
Labour Court, Land Claims Court, Supreme Court of
Appeals and Constitutional Court)
• Legal costs
• Personal injury law
• Contract management
• Commercial drafting
• Corporate legal compliance
• Municipal courts
• Alternative dispute resolution
• Employment and labour law
• Insolvency law
• Housing and land tenure laws
• Evictions and interdict
• Commercial legal services
• Debt collection
• Tracing and data cleansing
• General advisory law
Through understanding our clients and meeting their
needs, Noko Maimela Inc will grow to be the leading legal
service provider and advising institution in and around
To enrich the lives of our clients by providing value and
protecting their rights and interests.
____ ___ _
We, at Noko Maimela Incorporated, subscribe to the
following human values which have been our hallmark
throughout the period of our existence:
• Integrity in all our actions
• Commitment to our clients, our community and to
• Passion for result and excellent customer services
• Growth for our employees, our customers and the
entire South African community
• Respect for the environment, and our clients
• Confidentiality in clients’ affairs
Noko Maimela Incorporated differentiates its services
through innovation by striving to deliver the following
objectives and purpose:
• Increased service productivity and efficiencies
• Reduced unnecessary costs
• Increased strategic control over instructions received
• Leveraged expertise of services
Noko Maimela Incorporated is committed to Broad-Based
Black Economic Empowerment (B-BBEE) in South Africa
and will continue to make improvements to our policy
strategy on an ongoing basis. Noko Maimela Incorporated
has been awarded a Level 1 accreditation in line with the
B-BBEE Codes of Good Practice, further demonstrating
our commitment to continue improvement and making
a visible difference in South Africa.
Noko Maimela Inc seeks to develop a diverse workforce
and achieve equality at all levels of its operations through
a holistic approach. This will incorporate effective
recruitment, promotion and succession planning, and
effective diversity management.
Noko Maimela Incorporated is 100% black-owned
and employs 29 females and 33 youths. Noko Maimela
Incorporated prides itself on being a wholly black
owned law firm that has qualified in various disciplines.
This diversity has enabled us to stand out as a multidisciplinary
institution that makes us a one-stop legal
NOKO MAIMELA ATTORNEYS | 163 Marone Street, Burgersfort 1150 | PO Box 2041, Burgersfort 1150
Cell: 082 969 0049 | Fax: (013) 231 7481 | www.nokoattorneys.co.za | email@example.com
as a multidisciplinary
and a onestop
in information security
The adage “knowledge is power” is more apt today than ever before. Information is the currency of today’s
corporations, and protecting that information is of paramount importance – a company’s reputation,
strategic relationships and competitive advantage all depend on it. What are organisations doing to ensure
that they are efficiently, yet effectively, securing their data?
Alack of clarity about how to operate efficiently
means that many companies are wasting
critical resources in lower-priority areas,
resulting in insufficient resources to do the
critical work of protecting the crown jewels of
the company – their information and intellectual capital.
The leaders in information security understand that
their most valuable information assets are the potential
value that is at risk; the nature and source of threats;
the cost of introducing measures to monitor, detect,
prevent and react to information security threats; and
how to use their resources – people, technology, time,
money – most efficiently to achieve their information
While information security practices are improving
across the corporate world, few companies have
implemented a model that successfully protects
them while doing so in an efficient manner. Existing
international technical standards and frameworks
are available as guidelines for managing information
security, yet most fail to address how to do so efficiently.
_____ __ ___ __ _ _ _ _ _ _ _ __
While benchmarking the competition
can help find new solutions, merely
copying other firms’ strategies
can be ineffective, since good
information security management
is driven to a large extent by a
company’s business characteristics
___ __ ___ __ _ _ _ _ _ _ _ _ _
THE GOLDEN RULES
Efficient information security requires broad, crossbusiness
collaboration that engages the whole
company. It requires teamwork, decisive leadership,
effective communication and a culture of continuous
improvement. Only then can a company mitigate the
information security risks it faces as part of its daily
1. Protect your assets according
to the value at risk
Protecting every piece of data is cumbersome and
inherently inefficient. Rather, companies need to
classify their data based on the level of importance,
create a security architecture, and set security policies
and protection measures for each of these levels. This
are improving across
the corporate world,
few companies have
implemented a model
while doing so in an
22 | www.opportunityonline.co.za
involves not just assessing the data type and content,
but also who has access to the data and the type of
authentication needed to view the data.
Classifying and protecting data requires an
understanding of the type and source of threats faced
by organisations. Generic attacks target almost all
company data and are commonplace, and security
measures are usually readily available for most of these
attacks. Targeted attacks, on the other hand, are geared
toward a particular organisation and often a particular
data type. Attackers in these types of events tend to put
a lot of effort into them; when successful they can have
a greater impact on the organisation.
2. Turn your information security department
into a business-focused service provider
Similar to IT service management, the information
security department can create a service catalogue
that addresses the needs of the individual business
departments and hence will be easy to understand.
The use of those services will mostly be driven by
regulations and security policies; some could even be
mandatory. A non-exhaustive list of examples includes:
• Providing a secure environment to a business
application managing strictly confidential data
• Third-party security audit
• Security consulting to business projects
• Execut i n g annual information security
management systems (ISMS) cycle: reviewing risk,
measures and implementation planning
• Securing access to public cloud-based services
• Penetration testing and business impact analysis
• Awareness campaigns and staff training
At its core, information security is an extension of
the business – and the information security department
should provide security services relevant to the
business. One way it can achieve this, is by acting as
a service integrator, combining internally provided
services with those delivered by various external
service providers. Setting up information security as a
shared services centre means that costs are allocated
based on usage, rather than being rolled into the
corporate overhead, as is common.
When these services show up in each business
department’s budget, the benefit is not only transparency
but also a more efficient use of resources. The objective
of the shared service centre is to recover the cost of
providing services through optimum service pricing.
3. Ensure buy-in from top management
If there are intermediate layers in the reporting
structure, they should improve board understanding of
information security issues and increase transparency
rather than obscure it. There are several ways
senior leadership can underscore the importance of
information security management.
4. Establish an information security
roadmap with a balanced budget
Every corporation needs to understand its current
security posture; align its information security
objectives with its business strategy, goals and value at
risk; and then establish a strong information security
strategy with a clear and shared roadmap.
This strategic roadmap and its supporting budget
should be regularly updated in response to threats and
changes in the business environment. When security
needs are expressed in financial terms, the board and
management will be more inclined to pay attention.
Creating a budget to maintain and improve
information security capabilities is no easy task. Most
information security departments operate under very
tight financial constraints. To complicate matters,
future needs are uncertain: every year there are new
threats and vulnerabilities, new technologies, and often
new regulatory requirements. Companies need to walk
the line between overspending and underspending,
within the context of their risk appetite.
Companies need to shape their budgets based on
business requirements. The chief information security
officers (CISOs) we spoke with confirmed this view. Twothirds
say their organisations make allocation decisions
based on the requirements for planned projects (bottomup
approach), while one-third said allocations are a
percentage of the IT budget (top-down approach). Most
CISOs whose organisations used a top-down approach
felt a bottom-up approach was preferable.
However, neither of these approaches incorporates all
of the costs of information security management. For
example, there are additional costs incurred by various
departments that are related to information security.
Therefore, to measure efficiency, information security
costs in each of the following budgets need to be taken
• Direct. This budget is usually directly owned by
the information security department and covers a
variety of areas, from operational activities to risk
management, governance and compliance.
• Indirect. This budget is usually owned by either the
IT department or one of the business departments.
It includes the additional costs incurred as a result
of information security policies and requirements
• Emergency. This is usually handled by senior
executives, and funds can be tapped in the event of
a breach or incident. The strategies for dealing with
emergency funds vary widely across companies;
At its core,
is an extension of the
business – and the
to the business.
www.opportunityonline.co.za | 23
while some CISOs increase the direct budget for
worst-case scenarios and shift funds based on the
needs of the businesses, others create an entirely
separate and dedicated budget for emergencies.
It is also important to separate the internal
information security budget from those covering
product-related information security. In companies
with large product divisions, these budgets are often
handled by a separate team altogether, ensuring a clear
demarcation of resources and responsibilities. Also,
in that case, each will have direct and indirect budgets.
A best-practice budget is further divided among
preparation, prevention, detection and reaction
measures, with greater emphasis placed on early
detection and mitigation versus prevention. The budget
should be updated annually – with potential mid-year
adjustments driven by unexpected events – rather
than simply projected forward, to take into account the
financial impact of past incidents and previous security
investments, as well as changes in the threat landscape
and new protection measures.
_____ __ ___ __ _ _
Human attitudes and
are a reflection of the
are a critical element
___ __ ___ __ _ _
5. Use stress and penetration tests periodically
Periodic stress tests, also called wargaming, are
designed to assess the potential business impact of
attacks. These tests can help companies identify the
gaps in their capabilities and can serve as the basis
for a remediation plan, including changes to policies,
technologies, or even team roles and responsibilities.
A specific way to stress-test a company’s security
infrastructure is via penetration testing, which uses
realistic attack scenarios and vulnerabilities, both
technical and non-technical. The results indicate where
investment can create an immediate impact.
6. Go beyond benchmarking your
peers: cooperate with them
The respondents in our survey agree that finding
universally accepted key performance indicators (KPIs),
common in functions such as finance and operations, is
nearly impossible in information security. In any case,
while benchmarking the competition can help find
new solutions, merely copying other firms’ strategies
can be ineffective, since good information security
management is driven to a large extent by a company’s
7. Automate processes and functions
Leading companies stay ahead of the pack by using
tools that fully or partially automate security-related
functions and processes. AI, machine learning, big
data, behavioural analytics and the like are key trends
in the security solutions market.
8. Enlist your employees in the
fight against breaches
When asked about the most vulnerable aspect of
information security management in an organisation,
one banking CISO said, “The weakest part is always
human.” Human attitudes and behaviours, which are
a reflection of the organisational culture, are a critical
element of corporate information security.
To increase information security effectiveness,
mandatory training and awareness campaigns are
imperative. Vanessa Hanke, director of global security
policy and standards at SAP, said: “You can have as
many standards as you want, you can have as many
technological checks, but awareness among the
workforce remains critical.”
The goal is to create a culture where employees serve
as a source of information security intelligence and
support. Communicating about information security
policies in a way that relates directly to their work or
personal lives can significantly increase the number of
incidents reported by employees, as well as the quality
of feedback provided by the business.
24 | www.opportunityonline.co.za
ON THE RISE
Owned and managed by Ntombekaya (Ntombie) Nonxuba, Rise Uniforms is
a manufacturer and supplier of high-quality uniforms, corporate wear
and medical PPE.
Based in Philippi, Cape Town, they manufacture
locally as per client specifications and supply
nationally. In operation since 2007 and formally
registered in 2010, the company has an
established track record of consistently supplying
uniforms to well-known brands such as Pick n Pay and
Beyond simply meeting a product need, Rise Uniforms
is 100% black female-owned and currently employs 52
people from the township. With a strong desire to see
transformation in the Philippi area, Nonxuba deliberately
chose this location for the production facility and offers
a significant number of employment and business
opportunities in an area that has a staggering 38%
unemployment rate. They also offer training opportunities
to groups of women.
Rise Uniforms has the necessary technical expertise,
capacity and know-how to deliver on immediate
increases in volumes from the market. Having been
selected as a beneficiary of the Sanlam Enterprise and
Supplier Development Programme, which is designed to
assist companies to embark on their next growth phase,
a professional mentor was assigned to the business and
in 2017 the company increased its production plant from
154m 2 to 504m 2 to supply Boxer superstores.
Over the years, the company has improved its
production processes by investing in state-of-the-art
production machinery. In 2019 they acquired embroidery
machines, a screen-printing machine, an eyelet
buttonhole machine and other complementary machinery.
More recently the company also acquired machinery to
enable the production of medical PPE (three-ply surgical
masks). The company has the necessary capability and
capacity to accommodate additional sizeable orders and
can comfortably increase production.
Their product range includes:
• Medical supplies – PPE This includes surgical gowns, isolation
gowns, surgical masks, theatre gowns and two types of coverall.
• Golf shirts Rise Uniform’s various golf shirts and shirts
include crew-neck T-shirts, bird’s eye golfers, plain golfers and
pique knit golfers (both short and long-sleeved), V-neck T-shirts,
and Lacoste golfers.
• Bottoms The corporate wear bottoms range includes straightleg
chino pants for men and women, as well as chef pants.
• Winter wear This includes zip cardigans,
ladies’ cardigans, sleeveless jerseys and a
long-sleeve classic jersey.
• Winter jackets This range covers loose-fit
and slim-fit jackets in varying weights.
• Conti suits Rise Uniforms manufacture
conti suits as well as security shirts.
• Schoolwear This includes a short-sleeve
uniform with buttons at the front.
• Workwear This range covers nurses’
blouses, cleaners’ blouses, short-sleeve chef
jackets for men and women, aprons, lab coats
and security uniforms for men and women.
• Hooded tops In addition to hooded fleece
tops, Rise Uniforms make crew-neck fleece
tops, zip sweaters, track tops and pants and jumpsuits.
• Hooded dresses This includes hooded and sport dresses and
• Formal shirts Formal shirts are manufactured
both in short- and long-sleeved styles.
• Traditional shirts These shirts include a
contrast Chinese collar and button stand.
If its current trajectory is anything to go by,
Rise Uniforms is well on its way to achieving its
vision of being a recognised home name brand
nationally and in the rest of Africa; and attaining
its mission to be a brand of choice, being profitable
and offering high-quality products to clients.
How to make PUBLIC TRANSPORT
an attractive OPTION
in your city
Successful public transport is essential for any transport sector emissions reduction strategy.
It is a public good, delivering benefits for transport efficiency, pollution reduction, the local
economy and social inclusiveness. To make public transport an attractive and everyday choice for
residents, cities must design the service well, and overcome physical and cultural barriers.
High-quality public transport services are
reliable, frequent, fast, comfortable, accessible,
convenient, affordable, safe and serve routes
for which there is demand. This article introduces
the essential infrastructure, service
considerations, network planning and public messaging
needed to realise public transport’s full potential.
UNDERSTAND EXISTING SERVICE QUALITY
TO INFORM UPGRADE DECISIONS
The core considerations for analysis are:
• In-demand travel routes (including journeys
currently taken by car)
• Existing service frequency
• Existing service capacity
• Journey speeds
This analysis should inform decisions such as where
new bus routes should go, or how many buses should
operate on them at different times of the day. Analysis
should be ongoing to enable the public transit network
to develop alongside other changes in the city – too
often routes and services remain static.
Cities can benefit from modern technology and
software, such as GPS and automatic fare collection
systems, which make it easier and cheaper for transit
planners to harness rich data. Cities should complement
quantitative data with nuanced qualitative data about
users’ public transport experience.
RAISE REVENUES, SEEK PUBLIC AND PRIVATE INVESTMENT
AND BE PREPARED TO SUBSIDISE OPERATIONAL COSTS
In large cities, mass transit options such as metro, light
rail transit (LRT), trams and bus rapid transit (BRT) are
the most efficient and sustainable ways to move large
numbers of people across the city.
Building dedicated bus lanes for BRT and
improvements to bus service frequency can usually be
implemented relatively quickly and cheaply, compared
to other forms of mass transit. However, large physical
infrastructure projects – particularly rail and metro
– are expensive, politically complex and usually take
many years to be planned, financed and implemented.
Therefore, mass transit needs to be integrated into longterm
transport and urban development strategies.
By clearly laying out a programme of intended future
transit investments, cities can build political coalitions
behind projects, coordinate the multiple parties involved
in planning and delivering them, and make it easier to
secure financing from both government or private sources.
THE MAIN FINANCING OPTIONS ARE: 
• Public finance. Cities will usually require a combination
of national, state and local funding sources
to build public transit infrastructure. This includes
municipal bonds or loans, for example. Loans and
grants from national banks help to mobilise investment
capital and improve the bankability of largescale
The Gautrain is a
26 | www.opportunityonline.co.za
C40 Knowledge Hub
• Public subsidy. This is nearly always required to
cover operational costs. The notion that a successful
public transport system fully pays for itself through
passenger fare revenues is a common myth. The
fare and level of subsidy is a political decision;
to set the fare, transit agencies need to calculate
the actual cost of transporting a single passenger,
and then incorporate social equity goals and
other considerations. The required subsidy is the
difference between the two. The fare set and the
level of subsidy agreed or requested should enable
the city to improve transport service quality rather
than simply maintain current levels of service. 
• Raised revenue. For example, from fares, road
pricing, transport taxes, parking fees, land-value
capture and other transport-related policy.
• Private investment. This includes public-private
partnerships and bonds.
• Multilateral development banks. Developing
country cities may be able to obtain financing
support from multilateral development banks.
Each of these instruments has many advantages
and disadvantages, and their feasibility varies
depending on the project type and local political and
TAKE A WHOLE-NETWORK APPROACH TO
PUBLIC TRANSPORT PLANNING
Promoting a whole-network, intermodal approach to
physical transit planning, fares and operations includes:
• Physical planning. Bus and metro routes, as well
as walking and cycling infrastructure, should be
planned to intersect each other so that passengers
can easily move from one mode to another to
complete their journeys.
• Integrated fares. Payment systems should be
integrated so that passengers only pay once for
trips that include multiple public transit modes.
Smart ticketing systems automatically adjust
the fare that is charged to take into account each
passenger’s specific journey and travel frequency.
• Integrated operations. Ideally, a single agency
should be responsible for managing all public
transport systems in the city. This allows for
seamless intermodal integration and timetabling,
smart ticketing and single apps for users to find
information. London is a good example of this:
Transport for London is responsible, either directly
or through licences and franchises, for managing
London’s metro, bus and tram (DLR and Tramlink)
systems, city-wide cycling infrastructure, taxis
and water buses, in addition to London’s Major
Road Network (most smaller roads are managed
by Borough councils).
IMPROVE THE BUS TRANSIT EXPERIENCE THROUGH
RELIABLE AND EASY-TO-USE SERVICES
In many cities, bus networks are inefficient, overlapping,
irregular, have hard-to-read route maps, unbalanced
coverage of the city and differing operating hours.
This is often due to their organic historical expansion.
Nevertheless, these systems are widely used and hold
huge potential. Cities such as Seattle, Houston, Barcelona
and São Paulo have successfully invested in redesigning
their networks and improving service standards by:
• Optimising bus routes to minimise overlap
and ensure coverage across the city in line
with demand. Houston, in the United States, respecified
their service after the LRT was put in
place to reduce overlapping of these services and
to ensure transit coverage in other areas of the city.
This resulted in a 7% increase in ridership.
• Designing an intuitive network and easy-toread
bus map. Since 2010, Barcelona in Spain
has maximised the design value of its grid-based
road network to incrementally implement a
bus network with vertical North-South routes,
horizontal East-West routes and diagonal routes –
an intuitive design that makes it easy and practical
for citizens to use.
• Providing high-frequency, reliable services.
The bus network can be divided into main routes
and local routes, with different frequencies.
Bus routes on main city arteries and roads used
for longer distance travel will require frequent
service, at least every 15 minutes. This is the
minimum frequency at which the service is usually
considered good enough for travellers to turn up
without consulting a schedule. On local routes, a
is a key component of
a modern commuter
RAPID RESPONSE TO COMMUTER NEEDS
The South African National Department of Transport has implemented
a Bus Rapid Transport Strategy to ensure swift movement of large
numbers of people between parts of a city in a quick and safer way.
Twelve municipalities were selected to participate in the programme
to introduce to tackle transport challenges in major cities, including
the Rustenburg Rapid Transport system in Rustenburg in North West
Province and Leeto la Polokwane in Polokwane, Limpopo.
less frequent service may be sufficient, depending on demand
and provided that the service operates punctually according to
the timetable. São Paulo has implemented this dual-frequency
network timetable for the night shift, increasing night time
ridership by over 70%.
• Building regular bus stops for easy access. In Barcelona,
the maximum distance between transit stops in the new bus
network is 350m. In Seattle, the bus network upgrade plan will
increase the percentage of households within 800m of frequent
transit routes from 43% in 2015, to 73% by 2040.
______ __ ___ __ _ _
In large cities, mass transit
options such as metro, light
rail transit, trams and bus
rapid transit are the most
efficient and sustainable
ways to move large numbers
of people across the city
___ __ ___ __ _ _ _ _
REALLOCATE ROAD SPACE TO BUILD PUBLIC TRANSPORT INFRASTRUCTURE
Most cities’ streets are designed for private vehicles first. This spatial
bias must be rebalanced for public transport to deliver the reliable,
high-frequency service necessary to become a viable alternative.
Reclaiming road space for public transport can be quick, low-cost
and incrementally implemented, but must be part of a long-term,
holistic process. This process includes:
• Allocation of street space for street-level mass transit options,
particularly BRT and LRT. Both typically require dedicated
corridors and lanes.
• Improved bus shelters, upgraded transit terminals and space
surrounding those terminals, ensuring a comfortable transit
experience from journey start to end, including in waiting areas.
IMPROVE GOVERNANCE OF INFORMAL TRANSPORT SYSTEMS
In many Global South cities, a large volume of passenger traffic is
often handled by the informal public transport sector (paratransit).
The vehicles are usually small – minibuses or converted vans –
privately-owned and with little regulation.
In these cities, alongside improving the city’s main bus system,
transit agencies should seek to organise and improve regulation of
privately-owned transit industry. Agencies can establish vehicle
 Financing Sustainable Cities Initiative (no date) Bus Rapid Transit:
Reliable, convenient and efficient public transit. Available at:
http://financingsustainablecities.org/ [Accessed 26 February 2019].
 World Resources Institute India Ross Center (no date) Bus Karo 2.0
– Case Studies from India, Chapter 8.3 Public Transport Subsidies
 Sustainable Transport Award (2019) Winners
and service standards on procurement renewals, or establish new
formal public-private contracts. The Rea Vaya bus rapid transport in
Johannesburg, South Africa, is an example of this approach.
IMPROVE LOCAL AIR POLLUTION BY SHIFTING TO ZERO-EMISSION BUSES
Travel using diesel bus exposes riders to high levels of air pollution. 
Renewing outdated and polluting bus fleets by shifting to electric
buses reduces air pollution exposure for bus riders and on the
city’s streets while providing a more modern and comfortable
DELIVER EFFECTIVE MARKETING CAMPAIGNS TO
BREAK DOWN CULTURAL BARRIERS
Transit agencies must work to overcome the common cultural
barriers that discourage people from choosing public transport.
These will differ between cities but include ideas that public
transport is “only” for low-income people, or that it isn’t fashionable.
Car manufactures and new private car-hire companies advertise
their products and services using slick and intelligent public
relations campaigns. Public transit agencies should do the same to
improve the public image of their services, and increase ridership
numbers and fare revenues. Marketing campaigns should highlight
positive personal stories of how individuals have benefited by
using public transit. They should also be aligned with a compelling
branding strategy that gives the public transit system a clear and
attractive public identity.
MAKE USE OF NEW TECHNOLOGIES AND APPS
Transit agencies can make use of new technologies, such as
smartphone applications, to make their services more fashionable
and easier to use. At the same time, it will improve data collection,
user perception of the service and reduce operational costs. For
instance, Dar es Salaam’s DAR City Navigator app provides users
with real-time information on multiple transit modes, allowing
travellers to plan journeys rather than simply hoping for the best
when they set out for work. Bogotá’s Safetipin app, meanwhile,
allows women to rate their perception of personal safety on the
transit system. This geo-referenced data will then be used by the city
to design and prioritise interventions to improve the transit system
and other public spaces. 
Cities can partner with the private sector to develop these
services. The Citymapper app, for example, operates in 39 cities
globally and uses mobile and open transport data to help locals and
visitors navigate public transport systems.
Attractive public transport is the backbone of transit-oriented
development and an essential component of cities’ efforts to drive a
modal shift away from private vehicle use.
 Deutsche Gesellschaft fur Internationale
Zusammenarbeit (2011) Negotiating the deal to enable
the first Rea Vaya bus operating company
 Environmental Research (2015) Urban air quality comparison
for bus, tram, subway and pedestrian commutes in Barcelona
 Transformative Urban Mobility Initiative (no date) Innovative
mobility ideas can win up to 200k for realization
28 | www.opportunityonline.co.za
Powering growth of the South African aerospace, defence and
marine manufacturing sectors by providing aid and support to
make the industry competitive in global technology markets.
(012) 841-2913 | www.aisi.co.za
An initiative of the Department of Trade, Industry and Competition, managed and hosted by the CSIR
ENGINEERING AND CONSTRUCTION
Forward-thinking engineering and construction companies are
weathering the Covid-19 storm by rethinking their strategic choices.
The pandemic is threatening many companies’
survival, but for those with an eye on the future,
Covid-19 has brought an opportunity to rethink
their strategies. In fact, mining engineering and
construction companies that make the right
strategic moves now can lock in their survival not only
during the pandemic but well beyond.
Power has shifted away from economic powerhouses
such as Europe to strong emerging countries such
as China. Engineering service providers and plant
equipment manufacturers that have traditionally been
strong in the Western world will now need to adjust
to meet their customers’ needs and contend with
escalating global competition.
The pandemic has added even more pressure. A
global decline in the demand for raw materials has
postponed or even cancelled some mining projects,
creating a substantial competitive burden. Also, the
tightening criteria for green investments are making it
even more difficult to finance “dirty” projects, such as
in the coal industry.
Mining engineering and construction companies
that want to survive these unprecedented times will
need to begin by addressing a compelling question: Quõ
vãdis? Where are you marching? The leaders will chart
a clear path through the pandemic to sustainably and
profitably grow for the future.
FOUR STRATEGIES FOR SURVIVAL
The right commodities and geographies
Identify the ideal commodities and relevant geographies,
and then align the organisation accordingly. Having a
clear view of where to play is essential to optimising the
effectiveness of market-facing sales resources.
Covid-19 has had a major impact on demand and
has shifted business priorities. While demand for
commodities such as iron ore, coking coal, thermal
coal and bauxite plummeted and warehouses across
the globe stocked up, the demand for precious metals
such as gold and silver skyrocketed. After years of
strong growth, coal is stable for the short term but faces
an uncertain outlook in the long term. Steeply rising
emission standards around the world have chipped
away at demand for thermal coal as an energy source,
but the fundamental demand for metallurgical coal for
steel production will remain steady.
The growth rate of iron ore is also expected to
remain stable thanks to the ongoing demand for steel
for infrastructure and automotive companies. Copper
is expected to grow with continued electrification and
infrastructure investments. Key growth drivers are a
continued shift toward renewables, electrical vehicles,
and growth in developing countries.
Africa is home to less than 1% of global commodities,
spread over a fragmented playing field of many
countries that are hard to do business with. Making
matters even more challenging, China’s growing
influence is shrinking Western players’ market access.
Mining engineering and construction companies
must address four strategic market-related questions:
• Which raw materials are the best ones to focus on
for the short term amid Covid-19 market shifts, and
which commodities are best for the long term?
• Which geographical regions and countries are the
• How can the portfolio be optimised for each region?
• How can margins be protected and growth funded
in a tough market environment?
Key growth drivers
are a continued shift
and growth in
30 | www.opportunityonline.co.za
ENGINEERING AND CONSTRUCTION
Help customers cope with a changing environment
Because of the nature of the industry, capital
expenditures will always be relevant. Past EBITDA
will drive capital expenditures in the coming years. Be
clear about which customers to pursue and how best to
Having a good understanding of the financial power
of existing and potential new customers is essential to
setting the right commercial strategy and initiatives.
Classifying customers and communicating this
internally encourages the company to stay focused.
However, this could also mean adjusting or eliminating
customer interactions that don’t add value.
Global sales organisations should mirror the client’s
base and allow for a local presence close to the most
important customers. Consider not only the big mining
companies but also intermediates such as engineering
companies (engineering, procurement and construction
or engineering, procurement and construction management).
Intermediates are independent service providers
that support the big miners in early project phases (for
example, an order of magnitude); they are technologyneutral
and influenceable. A close customer relationship
creates an informative advantage, which leading
companies use to improve the quality of project offers.
Mining engineering and construction companies
must address four strategic customer-related questions:
• What impact is Covid-19 having on customers’
financial performance and stability?
• Which customers are the right ones to go for, and
how does the global commercial presence match?
• What is the risk appetite to win deals?
• What is the best way to build the right ecosystem
Take advantage of the aftermarket,
or improve your skills
During the escalating complexity of large projects,
mining companies pass on risks to their suppliers.
Capitalise on the aftermarket, or improve your skills to
cope with the new challenges of capital projects.
Most mining companies face challenges in dealing
with Capex projects. They report that 68% of capital
projects are behind schedule, and 62% are above the
original budget. As a result of trying to overcome this
poor performance, most companies are following a
Rather than developing skills to keep their projects
on track, mining companies are changing their buying
behaviours to close the gap in project management.
In other words, they are pursuing one-stop solutions
and passing the risk to their suppliers (the mining
equipment providers). In their search for the supplier
___ __ ___ __ _ _
Africa is home to less
than 1% of global
over a fragmented
playing field of many
countries that are hard
to do business with
___ __ ___ __ _ _
with the lowest risk of failing, they require the mining
equipment provider to have references from similar
projects. So it’s not only the company’s technical
ability that is required to be competitive; it also needs a
significant number of references to back up this ability.
Mining companies are forcing their equipment
providers to engage in construction activities, but many
are not ready to take on the task. Equipment providers’
traditional business model was the customised
engineering design and supplying the required systems
for a specific application. In many cases, the equipment
provider would also step into a supervising role on the
construction of its equipment on site. However, the
provider would not assume complete responsibility
for the construction process and all of its difficulties
and risks. Traditionally not their core business, mining
equipment providers often have poorly developed
capabilities to manage large construction projects.
Instead, if they must deliver turnkey solutions, new
personnel must often be found quickly.
Further decreasing the attractiveness of the project
business for traditional equipment providers, mining
Four strategies for survival
Having a good
of the financial
power of existing
and potential new
customers is essential
to setting the right
Four strategies can help mining companies survive the Covid-19 pandemic
www.opportunityonline.co.za | 31
ENGINEERING AND CONSTRUCTION
companies have started to use low-cost competitors as
a reference point for price setting. While those players
cannot yet compete with traditional companies on the
number of references, miners are seeing at what prices
similar equipment could be provided, escalating the
demand for tenders and negotiations. And now with
Covid-19 triggering a drop in the number of projects,
more companies are running to get a stake in a
The combination of higher risk from turnkey
solutions, significant cost pressure from low-cost
players, and fewer market opportunities make
traditional mining equipment providers view capital
projects as an unprofitable business.
To counteract the escalating risk and pressure on
costs, many original equipment manufacturers (OEMs)
are de-emphasising their project business (engineering,
supply and construction of customised engineering
solutions) in favour of providing off-the-shelf products
such as mills and crushers. Successful OEMs generate
a stable high-margin aftermarket business from these
products. Key success factors for this business model
are having a large installed base of equipment in highwear
operations and being able to service the products
quickly and efficiently.
In addition to providing a stable aftermarket
business, a large installed base of equipment serves as
a credible reference and competitive advantage during
tenders and creates an opportunity to learn from the
performance of the installed equipment (machine
learning-based maintenance). Given the need for a large
installed base and a global network of service centres,
it becomes clear that scale is essential to success in the
Players that are late to the game, which means they
lack a significant number of references or those that
don’t have the resources to establish a efficient service
network to win in the off-the-shelf product business,
have to face their dependence on the unfavourable
“pure” project engineering business where there is no
physical product or aftermarket service. Their success
will hinge on a significant increase in capabilities to be
able to cope with the changing environment.
The most important skills for these players are the
ability to develop cost-optimised designs and frontend
loading of engineering resources to efficiently
source required materials and smoothly manage onsite
construction. This will allow them to compete with lowcost
Mining engineering and construction companies
must address four strategic questions:
• What are the best technologies to bet on?
• Which differentiating short-term and long-term
factors can create a competitive advantage?
• What are the required resources to possibly gain
from the aftermarket?
• What skills can attract a positive cash flow?
Consolidate, or be acquired
M&A activities create a growing scale of competitors. Be
clear about your value proposition, market positioning,
strengths, weaknesses, opportunities and threats.
It’s better to have a clear strategy as opposed to
opportunistic moves with no clear direction.
Larger scale allows equipment providers to have a
large installed base of equipment and to sustain a global
network of service centres, both of which are vital to
generating a stable high-margin aftermarket business.
The recent M&A spike in the mining equipment
industry is no surprise.
Another reason for engineering solution providers to
increase their scale is the diversification of risk that is
inherent in single projects. Lastly, the relative impact
of one poorly executed project on a player’s profitability
decreases with scale.
In another interesting trend, Chinese players are
acquiring European companies to gain access to
Western markets. As a result, Western players will
face stiffer competition from China during tenders or a
potential acquisition from a Chinese competitor.
Covid-19 is causing economic and financial challenges
for many players in the industry, which can be a good
time to keep an eye open for potential acquisition targets
Mining engineering and construction companies must
address three strategic growth-related questions:
• What are the strategic options – either organic or
inorganic – to satisfy shareholders?
• Which partners can help bridge the strategic gaps,
and how can the company improve the perceived
value to these potential partners?
• Which attractive acquisition targets are struggling
amid the pandemic?
PUTTING STRATEGIES INTO PRACTICE
Each set of questions in the four strategies comes
with trade-offs that must be well understood before
making any decisions. But the strategy is about
more than deciding what to do. It’s also about clearly
communicating what not to do.
Defining the right strategies is a complex undertaking
that requires deep outside-in market expertise as well
as inside-out involvement from the C-suite and broader
management. Management buy-in is essential to a
Be clear about your
opportunities and threats.
32 | www.opportunityonline.co.za
Providing our customers with technical and in-depth industry
knowledge, products and services they need to ensure streamlined
operations, AR Jones Engineering provides solutions and equipment
to a diverse range of sectors, including the steel, oil and gas
and maritime industries and to municipalities in South Africa.
We specialise in the maintenance and repair of heavy-duty industrial equipment
across sectors and source and supply premium OEM pumps and valves. We
also advise companies on how to optimise processes in order to achieve
Our workforce includes industrial and engineering specialists, electricians,
fitters and welders. The capability, dedication and commitment of our people ensures that
we always deliver the highest quality services to our customers.
Maintenance and repairs of heavy-duty industrial equipment
Our technical knowledge and in-house experience ensure that we are well-equipped to
assist industry and municipalities in meeting the maintenance and repair requirements
of their critical assets. We are skilled at sourcing and managing maintenance and repair
teams and conduct this work on site. We also offer welding services for the oil and gas
industry and have industry welding procedures certification (ASME IX).
Source and supply premium
OEM pumps and valves
We have trusted relationships with
premium suppliers of quality pumps
and valves, and can advise on, source
and supply the equipment needed
by our customers for their effective
operations. We are the appointed agents for the German manufacturer Wangen Pumpen,
manufacturers of standard and customised progressing cavity and twin-screw pumps for
the biogas, food and beverage, agriculture and wastewater treatment markets.
Energy efficiency advisory services
We advise companies on how to optimise their energy consumption. Our in-depth
understanding of energy technology and solutions and our experience in the power
sector ensures that we are well-placed to advise our customers on meeting their energy
requirements and on improving the energy efficiency of their operations. We offer energy
assessments on behalf of the National Cleaner Production Centre South Africa.
firstname.lastname@example.org | www.arjones-engineering.com
AR Jones is a Level 1 B-BBEE company
and is ISO9001 compliant
AR Jones Engineering was founded by
Antonio Jones in 2016. Jones is a qualified
chemical engineer (B.Eng, Stellenbosch)
and a certified energy auditor, trained
as a consultant for the National Cleaner
Production Centre. He previously worked
for Eskom and ArcelorMittal South Africa.
Having worked his way up from the
factory floor to management after
successfully completing his engineering
degree, Jones now has longstanding
trusted relationships in the industry. He
is passionate about entrepreneurship
and is a business mentor, assisting small
businesses in his community to succeed.
Come and explore the Diamond Fields,
situated in the Frances Baard District,
a place of wide-open spaces and arid
natural beauty. The region is defined by
the diamond rush of the 19th century;
apart from its mining roots, the area
has many more experiences to offer,
including cultural attractions, the
beautiful outdoors and agri-tourism.
Nature lovers will feel at home, as
there are several game farms and
waterways in the region where visitors
can spot endangered game species and
a wonderful variety of endemic birds.
WELCOME TO SOUTH AFRICA’S FABLED DIAMOND FIELDS
SOL PLAATJE LOCAL MUNICIPALITY
This municipality is named after the first secretarygeneral
of the African National Congress, and
writer, Solomon Plaatje. At the heart of Sol Plaatje
Municipality is the bright metropolis of Kimberley,
the capital city of the Northern Cape Province.
Kimberley and its surrounds trigger the interest
of different kinds of tourism enthusiasts, from
leisure to adventure, history and art lovers.
Enjoy an adrenaline-filled skateboarding session
at the Kumba Skate Park, pop in at the Star of
the West restaurant that is full of rich mining
history or visit the Dornfield Nature Reserve
for an ideal weekend getaway filled with birdlife,
wildlife and attractive accommodation.
PHOKWANE LOCAL MUNICIPALITY
Phokwane embraces Hartswater, Pampierstad
and Jan Kempdorp. Hartswater, labelled as an
oasis on the edge of the
Northern Cape, intrigues
those interested in pristine
and frequent stops. The
area is home to Cotton
SA, which offers an
experience where visitors
are familiarised with the
production process of
cotton and boasts with a
variety of nuts and local
wines. Phokwane also offers
leisure activities, historical
and natural attractions.
MAGARENG LOCAL MUNICIPALITY
The name Magareng is a Setswana
word meaning “The Middle” and
is derived from the fact that this
region is literally in the middle
of the country. Warrenton is an
agricultural town located 70km
north of Kimberley on the Vaal
River and is the administrative
centre of the municipality. The
area offers significant historical
value along with pristine natural
landscapes that include the
Spitskop and Vaalharts Dams where
water activities can be enjoyed.
DIKGATLONG LOCAL MUNICIPALITY
Dikgatlong is a Setswana word
meaning “Confluence”, referring
to the place where the Harts
and Vaal Rivers flow into one
another. The area is home to the
site of the first alluvial diamond
diggings in the region and is
renowned for its excellent flyfishing
spots and luxury game
lodges. Visitors can explore the
Barkly-West Museum which
displays local geology, archaeology
and the history of the town, visit
the prehistoric Nooitgedacht
glacial paving, which was forged
250-million years ago and explore
the Gong-Gong Waterfall and
its pristine natural scenery.
Frances Baard District Municipality
Tel: 053 838 0911