South African Business 2024
Welcome to the 12th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za. A special feature in this journal focusses on the relationship between tertiary education, training and the jobs market. The youth unemployment rate is referenced in a discussion of the various measures that are being taken in the public and private sectors to help prepare young people for work, or to encourage them to start businesses. The role of the country’s Sector Education and Training Authorities (SETAs) is highlighted. Regular pages cover all the main economic sectors of the South African economy. This includes tracking the rapidly evolving renewable energy landscape and reporting on the progress of exploration and discoveries of oil and gas off the coast and on land. Landmarks such as BMW’s 50-year celebration of making cars in South Africa are noted and a snapshot of each of the country’s provinces is provided. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com and www.southafricanbusiness.co.za. These unique titles are supported by monthly business e-newsletters. The Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.
Welcome to the 12th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by an e-book edition at www.southafricanbusiness.co.za.
A special feature in this journal focusses on the relationship between tertiary education, training and the jobs market. The youth unemployment rate is referenced in a discussion of the various measures that are being taken in the public and private sectors to help prepare young people for work, or to encourage them to start businesses. The role of the country’s Sector Education and Training Authorities (SETAs) is highlighted.
Regular pages cover all the main economic sectors of the South African economy. This includes tracking the rapidly evolving renewable energy landscape and reporting on the progress of exploration and discoveries of oil and gas off the coast and on land. Landmarks such as BMW’s 50-year celebration of making cars in South Africa are noted and a snapshot of each of the country’s provinces is provided.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com and www.southafricanbusiness.co.za. These unique titles are supported by monthly business e-newsletters. The Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.
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OVERVIEW<br />
The Economic Inclusion Centre in Rustenburg.<br />
unlike the franchise model, means that independent retailers have<br />
more independence when it comes to decisions within the store and<br />
in terms of who to buy from. Spar’s independent retailers in <strong>South</strong>ern<br />
Africa grew from 2 440 in 2021 to 2 508 in 2022.<br />
Woolworths reports that it spent R450-million in 2022 on<br />
procurement from 34 SMME beneficiaries of its ESD programme.<br />
Examples include a security company (Comet Security), a manufacturer<br />
of babywear and underwear (Davis Clothing) and pet food (K9 Pet<br />
Food), all of which have expanded their businesses on the programme<br />
and started employing more staff as a result. Altogether, the company<br />
contributed R2.9-billion towards the revenue of 917 SMMEs in its value<br />
chain up to end of the financial year in June 2022.<br />
Funds and schemes<br />
In 2023 the SA SME Fund set up its third fund, a dedicated venture capital<br />
fund. In August first close was reached with a figure of R700-million,<br />
achieved with some support from the pension fund sector.<br />
The SA SME Fund is a fund of funds, investing in fund managers<br />
who will support startups and new ventures, rather than itself investing<br />
in projects. It was established with the support of 50 of <strong>South</strong> Africa’s<br />
biggest companies and its first fund had a fairly broad remit, which<br />
included fintech, biotech and supporting universities in turning research<br />
into business ventures. The focus of the second fund was debt funding.<br />
As Hilary Joffe pointed out in <strong>Business</strong> Day, <strong>South</strong> Africa “ranks only fourth<br />
in Africa” in venture capital, despite a strong private equity industry. Joffe<br />
cited the SA Venture Capital Association, which reported that in 2021, the<br />
venture capital industry invested R1.3-billion in 129 startups.<br />
ONLINE RESOURCES<br />
<strong>Business</strong> Day Supplier Development Awards: www.sdawards.co.za<br />
National Department of Small <strong>Business</strong> Development: www.dsbd.gov.za<br />
Small <strong>Business</strong> Institute: www.smallbusinessinstitute.co.za<br />
Small Enterprise Development Agency: www.seda.co.za<br />
In the North West, the Provincial<br />
Government is investing in digital<br />
infrastructure. SMMEs will be able to<br />
use the newly-established Mafikeng<br />
Digital Innovation Hub as a co-working<br />
environment and to get support in using<br />
digital tools.<br />
The <strong>South</strong> <strong>African</strong> National Roads<br />
Agency Limited (SANRAL) actively<br />
supports small businesses wherever it<br />
works in <strong>South</strong> Africa. Subcontracts are<br />
routinely awarded for maintenance such<br />
as the patching of potholes, fencing and<br />
the cutting of grass verges.<br />
Part of the rationale behind a national<br />
programme to revive industrial parks is to<br />
benefit SMMEs. The National Department<br />
of Trade, Industry and Competition (the<br />
dtic) has invested R40-million in the<br />
Nkowankowa Industrial Park in Limpopo,<br />
an initiative which has helped to create<br />
174 direct jobs. In the northern reaches<br />
of the province, more than 300 jobs have<br />
been created with the revitalisation of<br />
the Thohoyandou Industrial Park, which<br />
has achieved a 91% occupancy rate.<br />
The dtic is trying to stimulate<br />
township and rural economies through<br />
programmes such as the Enterprise<br />
Investment Programme (EIP).<br />
The National Department of Small<br />
<strong>Business</strong> Development (DSBD) has<br />
several programmes to assist SMMEs<br />
and co-operatives. The Small Enterprise<br />
Development Agency (Seda), a subsidiary<br />
of the DSBD, has 42 incubation centres<br />
under its Seda Technology Programme<br />
(STP). In Mpumalanga, Seda supports<br />
several incubators: Furntech, furniture<br />
manufacturing, White River; Mobile Agro-<br />
Skills Development & Training, agricultural<br />
training, Nelspruit;Mpumalanga Stainless<br />
Initiative (MSI), stainless-steel processing,<br />
Middelburg (with Columbus Stainless);<br />
Timbali floriculture, Nelspruit; Ehlanzeni<br />
TVET College Rapid Incubator Renewable<br />
Technologies, Nelspruit. ■<br />
PHOTO: Impala<br />
55<br />
SOUTH AFRICAN BUSINESS <strong>2024</strong>
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