Opportunity Issue 110
Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).
Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).
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www.opportunityonline.co.za AUGUST/SEPTEMBER/OCTOBER 2024 • ISSUE <strong>110</strong><br />
LEADING THE PRIVATE<br />
SECTOR CHARGE FOR GREEN<br />
SKILLS AND JOBS<br />
THE CITY OF CAPE TOWN IS<br />
PILOTING AN ELECTRICITY<br />
WHEELING PROJECT<br />
FROM ESTATES TO<br />
PRECINCTS: A PROPERTY<br />
EVOLUTION<br />
WHY CUSTOMER EXPERIENCE<br />
IS THE NUMBER ONE<br />
DIFFERENTIATOR<br />
AI-POWERED TECHNOLOGY<br />
CAN UNLOCK MINING’S<br />
POTENTIAL<br />
IS VENTURE BUILDING<br />
THE SECRET SAUCE FOR<br />
CREATING NEW COMPANIES?<br />
ECONOMIST OF THE YEAR<br />
INDEPENDENT ECONOMIST ELIZE KRUGER IS THE 2023 BUREAU<br />
OF MARKET RESEARCH / UNISA ECONOMIST OF THE YEAR
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Small and Medium Enterprises (SMEs) in South Africa are vital<br />
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2 | www.opportunityonline.co.za<br />
Nobesuthu Ndlovu, Director SME: Old Mutual Corporate
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Contents<br />
ISSUE <strong>110</strong> | AUGUST/SEPTEMBER/OCTOBER 2024<br />
10<br />
14<br />
18<br />
24<br />
28<br />
30<br />
36<br />
44<br />
45<br />
44<br />
EDITOR’S NOTE<br />
SACCI<br />
The South African Chamber of Commerce and Industry (SACCI) stands as the most<br />
representative voice of business. With a legacy rooted in advocacy, collaboration and<br />
progress, SACCI continues to champion the interests of businesses across diverse sectors.<br />
ECONOMIST OF THE YEAR<br />
Elize Kruger was declared the winner of the 2023 Bureau of Market Research/Unisa<br />
Economist of the Year competition.<br />
ENERGY PLANT AND BIOMASS OPTIMISATION<br />
The Commercial Director of Associated Energy Services (AES), Dennis Williams, reveals how<br />
the timber sector is now creating new income streams from biomass.<br />
NINE STEPS TO A GREENER BUSINESS<br />
Simple changes can make businesses greener and more sustainable, says René Botha,<br />
Regional Investment Manager at Business Partners Limited.<br />
THE NUMBER ONE DIFFERENTIATOR – CUSTOMER EXPERIENCE<br />
Nathalie Schooling, CEO of nlightencx, reports on businesses and brands working hard<br />
at differentiating themselves. Excellent CX creates loyalty, establishes credibility and<br />
enhances market status.<br />
POWER IN THE HANDS OF THE CONSUMER<br />
Wheeling is a key component of the City of Cape Town’s drive to ensure power continuity<br />
without collapsing a vital revenue stream. Enpower Trading is a partner in the city’s<br />
wheeling pilot project.<br />
INVESTMENT IS NEEDED IN LAST-MILE DELIVERY<br />
Anita Erasmus, Head of Business at ecommerce ecosystem Bob Group, argues that<br />
intelligent solutions are needed to take advantage of a South African market that is going<br />
to be worth R307-billion by 2030.<br />
LAST-MILE DELIVERIES WILL BOOST EV UPTAKE<br />
The last-mile component of the fleet industry will drive the uptake of electric vehicles, says<br />
Justin Manson, Sales Director at Webfleet South Africa.<br />
24<br />
28<br />
36
Contents<br />
ISSUE <strong>110</strong> | AUGUST/SEPTEMBER/OCTOBER 2024<br />
46<br />
50<br />
58<br />
60<br />
64<br />
66<br />
68<br />
77<br />
GOOD DESTINATIONS FOR MARITIME SALES<br />
Should Southern Africa be preferred destination for judicial ship and other maritime<br />
property sales? Lana Stockton, a partner at law firm Bowmans, tackles this question.<br />
DELIVERING RELEVANT TRANSPORT SKILLS TRAINING<br />
The updated Transport Education Training Authority Strategic Plan 2020 – 2025<br />
highlights the threats and opportunities faced by the transport sector, and how the<br />
Transport Education Training Authority (TETA) plans to tackle them.<br />
THE SECRET SAUCE FOR CREATING NEW COMPANIES<br />
Companies are specialising in “venture building” to create innovative small businesses<br />
along the corporate supply chain. Specno says it’s bringing a startup approach to<br />
corporate innovation.<br />
FROM ESTATES TO PRECINCTS: A PROPERTY EVOLUTION<br />
Estate living is growing in popularity in South Africa at the same time as the concept is<br />
evolving to include a broader range of properties and services.<br />
THE REAL ESTATE INTERNAL AUDITOR OF THE FUTURE<br />
BDO Risk Advisory Services Director, Farhana Hassim, discusses how the internal audit<br />
function needs to become an agile, trusted advisor with specialists addressing digital,<br />
ESG and change management needs.<br />
BELL HEAVY INDUSTRIES IS LAUNCHED<br />
The Richards Bay plant of Bell Equipment has a new heavy-duty facility.<br />
AI-POWERED TECHNOLOGY CAN UNLOCK MINING’S POTENTIAL<br />
By Shaun Vorster Partner and Dinesh Gurlal, Director: Data & Analytics at Forvis Mazars<br />
in South Africa.<br />
ECONOMIC DATA<br />
The latest economic data issued by SACCI: Business Confidence Index (BCI) and Trade<br />
Conditions Survey (TCS).<br />
50<br />
58<br />
66<br />
60
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EDITOR'S NOTE<br />
A shimmy to<br />
the middle<br />
Like voters in France and the UK, South Africans in 2024 did not jump to the left<br />
or step to the right, but plumped for parties committed to adhering to their<br />
countries’ constitutions.<br />
A shimmy to the centre, perhaps?<br />
Unlike the voters in the UK, South Africans (and their French counterparts) in general<br />
elections chose not to bless any one party with a majority, forcing a large number of<br />
groups to work together to form the government.<br />
The party that attracted the second-most votes, the Democratic Alliance (DA), gave<br />
early signals that it was ready to talk about working with the African National Congress<br />
(ANC), which had held the reins of government for three decades, by saying that the party<br />
believed in “the full and urgent implementation of Operation Vulindlela”. They flagged the<br />
economic recovery programme in which President Cyril Ramaphosa is strongly invested<br />
as “critical for success” of South Africa’s economy. After extensive talks, a government of<br />
national unity (more accurately, a large coalition) was formed, and if the focus can be on<br />
the economy, the business and the investment community will be relieved and pleased.<br />
The multiparty Seventh Administration, which is set to run until 2029, represents the<br />
biggest change to the political landscape since the beginning of democracy in South<br />
Africans in 1994. Can the script of the Rocky Horror song hinted at above be followed?<br />
Can South Africa “do the Time Warp again” and reach the growth rates above 4% that<br />
were achieved in the late 1990s? That would be astounding!<br />
In this issue, we are pleased to carry news of the winner of the 2023 Bureau of Market<br />
Research/Unisa Economist of the Year competition. Independent economist Elize<br />
Kruger proved to be the most accurate in terms of forecasting a set of variables, which<br />
are described in an article accompanying the news of the winner. Biomass optimisation<br />
is the subject of an article by the Commercial Director of Associated Energy Services<br />
(AES), Dennis Williams, while the concept of wheeling is explained by Enpower Trading,<br />
a founding partner in the City of Cape Town’s electricity wheeling pilot project.<br />
Last-mile delivery is the subject of two articles. Anita Erasmus of the Bob Group<br />
argues that intelligent solutions are needed to take advantage of a South African market<br />
that is going to be worth R307-billion by 2030 while Justin Manson, Sales Director at<br />
Webfleet South Africa, notes that the last-mile segment of the fleet industry will be a<br />
driver of the uptake of electric vehicles. Lana Stockton, a partner at law firm Bowmans,<br />
writes that both Namibia and South Africa are good destinations for maritime sales.<br />
Nathalie Schooling, CEO of nlightencx, reports on how businesses and brands are<br />
working hard at differentiating themselves from their competitors. A new field in the<br />
creation of small enterprises has opened up, “venture building”. Specno highlights<br />
good local and international examples of this trend. Estate living is growing in<br />
popularity in South Africa at the same time as the concept is evolving to include<br />
a broader range of properties and services. These trends are explored under my<br />
byline with reference to developments in three provinces. BDO Risk Advisory Services<br />
Director, Farhana Hassim, discusses how the internal audit function needs to become<br />
an agile, trusted advisor.<br />
An important contribution from Shaun Vorster, Partner, and Dinesh Gurlal,<br />
Director: Data & Analytics, at Forvis Mazars in South Africa explores how AI can<br />
unlock mining’s potential.<br />
John Young, Editor<br />
10 | www.opportunityonline.co.za<br />
www.opportunityonline.co.za<br />
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the copyright owner. The opinions expressed are not necessarily those of<br />
<strong>Opportunity</strong>, nor the publisher, none of whom accept liability of any nature<br />
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would like to express thanks to those who support this publication by their<br />
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ENERGY EFFICIENCY<br />
AND INNOVATION<br />
STAYCOLD International is a leading<br />
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STAYCOLD has a proud history of always<br />
taking energy efficiency seriously. We are<br />
always striving to develop our products to<br />
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low as possible, but also customer’s total<br />
cost of ownership.<br />
Our ESG journey reflects this commitment.<br />
We are proud of the steps we are taking<br />
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For more information on our range<br />
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All STAYCOLD units are manufactured in an ISO 9001:2015 approved facility to stringent IEC<br />
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Trust the Experience
News & snippets<br />
Industry insights from the past quarter<br />
New “Rhino” tax incentive targets conservation efforts<br />
A new tax incentive allows South Africans who are safeguarding threatened ecosystems<br />
or species to deduct all expenses related to their conservation efforts from taxable<br />
income. This unique tax incentive, section 37C(1) of South Africa’s Income Tax Act, is<br />
enabled by the signing of the country’s first-ever Biodiversity Management Agreements<br />
(BMAs) between the Ministry of the Environment and South African taxpayers. These<br />
initial BMAs, a candidate Other Effective Area-Based Conservation Measure (OECM),<br />
are being implemented for the first time by landowners in Limpopo Province, who are<br />
now able to access this pioneering deduction. The tax incentive for threatened species<br />
came about through the Department of Forestry, Fisheries and the Environment (DFFE)<br />
together with the Sustainable Finance Coalition and through implementation by<br />
Wilderness Foundations Africa (WFA). The Sustainable Finance Coalition finds, designs<br />
and mobilises finance solutions for enduring naturescapes across Africa. Founded in<br />
2019 by the WFA and WWF-SA, the Coalition focuses on unique and innovative finance<br />
solutions that are targeted at the point of conservation and social impact.<br />
Hendrina Recycling is a winner<br />
Refiloe Ramadikela, owner of Mpumalanga-based Hendrina Recycling, is among the national<br />
sustainability change-makers that have been honoured by South Africa’s longest-standing<br />
producer responsibility organisation (PRO), Petco. She founded the company in 2020 while<br />
completing her environmental management studies. Covering a 200km radius, Hendrina<br />
Recycling operates in areas of Mpumalanga like Hendrina, Middelburg and Siyabuswa,<br />
engaging in impactful initiatives such as awareness campaigns and community outreach. With<br />
a team of 29 staff and partnerships with schools, municipalities and non-profit organisations,<br />
Hendrina Recycling is transforming waste management and promoting sustainability in the<br />
community. Ramadikela’s focus on the daily collection of recyclable materials resulted in the<br />
processing of a total of 706 tons in 2023. Ramadikela said the local municipality, industrial<br />
and commercial businesses and households had embraced the recycling culture. The<br />
annual Petco awards recognise inspiring work within the collection and recycling value<br />
chain throughout South Africa. The accolades were awarded to 11 recipients in nine<br />
categories. Petco CEO Cheri Scholtz said the purpose of the accolades was to shine a light<br />
on unsung sustainability heroes and initiatives throughout South Africa. “The awards<br />
once again recognise South Africans who are making an extraordinary contribution<br />
towards building a circular economy for our country. These community members and<br />
organisations are helping to create income streams in the waste economy and divert<br />
post-consumer packaging from landfills and from ending up in the environment,” said<br />
Scholtz. Since 2004, Petco has been facilitating the collection and recycling of PET<br />
bottles and jars, and their associated labels and closures, on behalf of its members.<br />
It began doing the same for liquid board packaging (LBP) in 2023.<br />
12 | www.opportunityonline.co.za
Greener floors are quieter too<br />
Recycled truck tyres are being used<br />
to manufacture acoustic cradles to<br />
contain noise in flooring. Mathe Group’s<br />
Hammarsdale facility, which recycles<br />
approximately 1 000 radial truck tyres<br />
per day to produce 45 tons of rubber<br />
crumb, has entered several partnerships<br />
that have helped the company grow<br />
and reduce South Africa’s hazardous<br />
buildup of used tyres. A collaborative<br />
effort called The Flooring Connection<br />
(which includes Instafloor SA, Instafloor<br />
UK and Van Dyck, a sister company of<br />
Mathe) spans several years. Van Dyck<br />
manufactures the acoustic products at its<br />
production facility at the same location in<br />
Hammarsdale, KwaZulu-Natal. InstaCradle<br />
rubber crumb subflooring cradles were<br />
initially used for raised acoustic flooring<br />
in the sports and office environment and<br />
decking applications, pictured, followed.<br />
The EcoPaver Cradle was developed for<br />
external, permeable paving, allowing<br />
for easy water runoff and has been used<br />
in several waterwise buildings. Rubber<br />
crumb underlays are now being used as<br />
acoustic barriers under standard cement<br />
screeds and as low-profile solutions for<br />
self-levelling screeds. InstaCradles are<br />
used in acoustic recording studios, to<br />
install wall cladding, support roofing joists<br />
and to hold the feet of solar geysers.<br />
Suppliers win in sustainability and innovation<br />
Five suppliers to AB InBev who have made significant strides in sustainability<br />
and innovation have been recognised and honoured by the global brewing<br />
company. The winner of the “The Most Ambitious Climate Target in 2023”<br />
was Frigoglass Group, a glass producer. AB InBev has an ambition to<br />
achieve net-zero carbon emissions across its value chain by 2040. In 2024<br />
the company brought together business heads from its major supplier<br />
organisations across Africa to participate in the “Eclipse CEO Event”. The<br />
agenda underscored the importance of climate resilience, while delving<br />
into the unique challenges and opportunities presented. In addition, there<br />
was a showcase of the progress being achieved by AB InBev’s Africa Zone<br />
through collaboration, with suppliers generously sharing best practices<br />
that could be adopted and scaled for greater impact. Richard Rivett-Carnac,<br />
the CEO of South African Breweries, noted: "The journey to decarbonise<br />
our footprint is not one we can embark on alone. Therefore, only through<br />
our collective action and partnership with our suppliers, can we succeed<br />
in achieving our global ambition.”<br />
www.opportunityonline.co.za | 13
PROFILE<br />
Promoting and protecting<br />
the interests of business<br />
The South African Chamber of Commerce and Industry (SACCI) is the representative voice of business.<br />
The South African Chamber of Commerce and Industry<br />
(SACCI) stands as the most representative voice of<br />
business. With a legacy rooted in advocacy, collaboration<br />
and progress, SACCI continues to champion the interests<br />
of businesses across diverse sectors.<br />
SACCI, the apex chamber of commerce in the Republic of South<br />
Africa that was founded in 1945, is a broadly based representative<br />
national business body. The President of SACCI is Advocate Mtho<br />
Xulu and the CEO is Alan Mukoki, pictured.<br />
SACCI is made up of three tiers of membership:<br />
• Corporates: large multinationals and national companies, most<br />
of which are JSE listed.<br />
• National associations: the industry-specific bodies that<br />
represent various groups of professionals in the country.<br />
• Chambers: this tier of membership consists of town and city<br />
chambers throughout the country as well as a few township<br />
chambers. Under this tier we also host the approximately<br />
20 000 SMMEs that are also members of SACCI via the chamber<br />
they are affiliated to.<br />
As the “Voice of Business” SACCI assists its members by<br />
preparing and submitting policy positions on business-related<br />
issues to government: International Trade, Taxation, Economic<br />
Affairs, Labour and Company Wellness, Education and Training,<br />
Information Technology, SADC, NEPAD, Small Business, Transport<br />
and Regulatory Affairs. SACCI also interacts with many other<br />
agencies on business issues. SACCI holds informative seminars<br />
and presentations using noteworthy speakers.<br />
Seven pillars that drive the organisation:<br />
• Inclusive economic growth and employment creation<br />
• Constructive public and private stakeholder engagement<br />
• Entrepreneurship<br />
• Infrastructure “The four lines to heaven”<br />
• Continental development in Africa and AfCFTA<br />
• Revenue generation<br />
• Membership rewards and benefits<br />
Services<br />
• Policy: Legislation and regulation<br />
• Business Confidence Index (BCI): A report that measures the<br />
business confidence in the South African economy<br />
• Trade Conditions Survey (TCS): A comprehensive overview<br />
of retail sales and goods imported and exported for the time<br />
period covered<br />
• Small Business Growth Index (SBGI): Introduced in 2023 in<br />
partnership with the Bureau of Market Research (BMR), the SBGI<br />
tracks small business growth and development<br />
• Facilitation of trade delegations: Successful trade delegations<br />
into South Africa<br />
• Networking and business-to-business linkages<br />
• ATA Carnet and Certificates of Origin<br />
• Interventions with government, legislators or regulators on<br />
behalf of members<br />
• Events coordination and management<br />
• Rewards and benefits<br />
• Ministers’ breakfasts<br />
• Women in Business cocktail event<br />
• Corporate Forum, Chamber and Association Forums<br />
• Political dialogue<br />
Contact SACCI<br />
Tel: +27 11 446 3800<br />
Email: info@sacci.org.za | Website: www.sacci.org.za<br />
14 | www.opportunityonline.co.za
BUSINESS TRENDS<br />
How to harness<br />
the potential of AI<br />
A frequent speaker at SMME functions hosted by SACCI,<br />
Andre Fourie, the CEO of MatlaFin, has concrete advice on<br />
how businesses can leverage AI to gain a competitive edge.<br />
Andre Fourie, CEO of MatlaFin<br />
Artificial Intelligence (AI) is no longer a<br />
futuristic concept, it’s a powerful tool<br />
that’s reshaping how businesses operate<br />
today. For business owners and managers,<br />
understanding and leveraging AI can lead to significant<br />
improvements in efficiency, customer satisfaction and<br />
overall performance. Let’s explore how AI is impacting<br />
everyday business operations and how you can<br />
harness its potential.<br />
Automate<br />
One of the most immediate benefits of AI in<br />
business is its ability to automate repetitive tasks.<br />
This frees up your team to focus on more strategic,<br />
value-adding activities. Examples include: data<br />
entry and processing; invoice management;<br />
appointment scheduling; basic customer inquiries.<br />
By implementing AI-powered automation, you can<br />
reduce human error, speed up workflows and allow<br />
your employees to dedicate their time to more<br />
complex, creative endeavours that drive growth.<br />
Customer service<br />
AI is revolutionising customer service through<br />
chatbots and virtual assistants. These AI-powered<br />
tools can handle a wide range of customer inquiries<br />
24/7, providing instant responses and improving<br />
overall customer satisfaction. Benefits include:<br />
reduced wait times for customers; consistent<br />
service quality; ability to handle multiple inquiries<br />
simultaneously; freeing up human agents for more<br />
complex issues. In one instance, a multinational bank<br />
implemented AI chatbots and saw a 40% decrease<br />
in customer wait time and a significant increase in<br />
customer-service efficiency.<br />
Data analysis<br />
AI excels at processing and analysing vast amounts<br />
of data, providing insights that can inform better<br />
business decisions.<br />
Applications include: market-trend analysis; customer-behaviour prediction;<br />
risk assessment; resource-allocation optimisation. By leveraging AI for data<br />
analysis, you can make more informed, strategic decisions that give your<br />
business a competitive edge.<br />
Personalised marketing<br />
AI algorithms can analyse customer data to deliver highly personalised<br />
marketing experiences. This leads to more effective marketing campaigns<br />
and increased sales conversions. Examples include: tailored-product<br />
recommendations; personalised email campaigns; dynamic-pricing strategies;<br />
targeted advertising. An e-commerce company that implemented AI for<br />
personalised marketing saw a 35% increase in customer engagement and a<br />
significant boost in sales conversions.<br />
Supply-chain management<br />
AI can significantly improve supply-chain management by predicting demand<br />
fluctuations, optimising inventory levels and suggesting efficient shipping<br />
routes. Benefits include: reduced delays; minimised carrying costs; more<br />
efficient inventory management; improved responsiveness to market changes.<br />
Predictive maintenance<br />
For businesses with equipment or machinery, AI-powered predictive<br />
maintenance can be a game-changer. By analysing sensor data, AI can<br />
predict when equipment is likely to fail, allowing for proactive maintenance.<br />
Advantages: reduced downtime; lower repair costs; extended equipment<br />
lifespan; improved safety.<br />
Risk assessment<br />
In the financial sector, AI is being used for algorithmic trading, risk assessment<br />
and fraud detection. This enhances both efficiency and security in financial<br />
operations. Applications: real-time fraud detection in transactions; credit-risk<br />
assessment; automated financial reporting; investment portfolio optimisation.<br />
The impact of AI on everyday business operations is profound and farreaching.<br />
From automating routine tasks to enabling data-driven decisionmaking,<br />
AI offers tools that can significantly enhance your business’s<br />
efficiency and competitiveness. However, it’s important to approach AI<br />
implementation thoughtfully. Ensure that your team is prepared to work<br />
alongside AI systems and that the AI solutions you choose align with your<br />
specific business goals. As AI technology continues to evolve, staying informed<br />
and open to its possibilities will be crucial for business success. By embracing<br />
AI, you can streamline your operations, improve customer experiences and<br />
position your business for growth in an increasingly digital world.<br />
www.opportunityonline.co.za | 15
SACCI MEMBER PROFILE<br />
Forvis Mazars is the brand name for the Forvis<br />
Mazars Global network (Forvis Mazars Global<br />
Limited) and its two independent members, Forvis<br />
Mazars LLP in the United States and Forvis Mazars<br />
Group SC. Forvis Mazars Global Limited is a UK<br />
private company limited by guarantee and does<br />
not provide any services to clients.<br />
Forvis Mazars<br />
shakes up<br />
professional<br />
services<br />
industry<br />
New $5-billion global network is the largest<br />
new entrant in the global rankings in decades.<br />
On 1 June 2024, two distinguished professional<br />
services firms, Mazars and FORVIS, officially<br />
launched their new global network, Forvis Mazars.<br />
This collaboration marks the creation of the largest<br />
new entrant in the global rankings in decades, bringing a<br />
combined revenue of $5-billion and establishing Forvis Mazars<br />
as a top 10 global network. This new venture introduces<br />
unprecedented agility, capacity and global coverage, making<br />
Forvis Mazars a unique player in the market.<br />
A new era of professional services<br />
Forvis Mazars represents a significant shift in the professional<br />
services industry, offering clients an innovative alternative<br />
in the global market. The combined strengths of Mazars, an<br />
international partnership with a presence in over 100 countries,<br />
and FORVIS, a top-ranked US firm, create a powerful network<br />
capable of supporting clients worldwide. This partnership is<br />
more than a business move; it is a strategic alignment designed<br />
to deliver unparalleled client experiences and uphold the<br />
public interest.<br />
16 | www.opportunityonline.co.za
SACCI MEMBER PROFILE<br />
Tom Watson, CEO of Forvis Mazars LLP (formerly FORVIS LLP)<br />
A vision for excellence<br />
Hervé Hélias describes the formation of Forvis Mazars as a<br />
momentous and exciting development for clients, the profession<br />
and the firm’s people: “Mazars and Forvis have a long history of<br />
collaboration, sharing a commitment to delivering outstanding<br />
client experiences. As a unified global brand, we are positioned to<br />
offer consistent, high-quality services worldwide while remaining<br />
agile to meet specific client needs. I am extremely proud to lead<br />
this network, which will continue to empower our people and raise<br />
the bar for client service standards.”<br />
Tom Watson emphasises the network’s client-centric approach:<br />
“Forvis Mazars is built on listening to our clients and anticipating<br />
their challenges. This network will unlock new opportunities for<br />
both clients and our people, ensuring long-term success. We are<br />
committed to making decisions that prioritise their interests.”<br />
Comprehensive services for a global market<br />
Forvis Mazars offers a wide range of professional services,<br />
including audit and assurance, tax and advisory services.<br />
Operating under a single brand, the network’s two member<br />
firms – Forvis Mazars LLP in the US and Forvis Mazars Group SC<br />
internationally – deliver these services with a shared commitment<br />
to quality and client satisfaction. This unified approach allows<br />
Forvis Mazars to provide tailored solutions that address the<br />
evolving needs of clients in various industries and markets.<br />
Hervé Hélias the first Chair of the Global Network Board.<br />
Leadership for a global network<br />
The governance of Forvis Mazars is structured to ensure<br />
seamless collaboration and client service across all regions.<br />
The Global Network Board, led by Hervé Hélias as Chair, brings<br />
together experienced leaders from both firms. Hélias, who<br />
continues as Chairman of the Group Executive Board of Forvis<br />
Mazars Group SC, is joined by Matt Snow, Vice Chair of the<br />
Global Network Board and Chairman of Forvis Mazars LLP. The<br />
board includes notable leaders such as Tom Watson, CEO of<br />
Forvis Mazars LLP, and key executives from both the US and<br />
international branches.<br />
Empowering people and communities<br />
The strategic vision of Forvis Mazars extends beyond business<br />
success to include the advancement of its people, industry and<br />
communities. By fostering a culture of continuous learning and<br />
innovation, Forvis Mazars aims to drive progress and create a<br />
positive impact globally.<br />
As a new member of the South African Chamber of Commerce<br />
and Industry (SACCI), Forvis Mazars is poised to contribute<br />
significantly to the professional services landscape in South Africa<br />
and beyond. The firm’s commitment to delivering exceptional<br />
client experiences, combined with its global reach and local<br />
expertise, positions Forvis Mazars as a leader in the industry.<br />
In South Africa the Country Managing Partner is Anoop Ninan<br />
and the Partner in charge of the relationship with AMCHAM is<br />
Sebastien de Place. Both of these leaders, together with all of the<br />
Forvis Mazars team, are happy to have joined and be part of the<br />
South African Chamber of Commerce and Industry and are looking<br />
forward to connecting with other members of SACCI.<br />
For more information, visit www.forvismazars.com/za/en<br />
www.opportunityonline.co.za | 17
ECONOMIST OF THE YEAR<br />
Informing business and<br />
investment decisions<br />
The BMR / Unisa Economist of the Year Competition takes centre stage<br />
in economic thinking and growth projections<br />
The Economist of the Year Competition was hosted for<br />
several decades by Media24. In 2021 Media24 decided to<br />
relinquish this prestigious competition due to company<br />
restructuring and operational changes.<br />
The Bureau of Market Research (Pty) Ltd (BMR) was approached<br />
by Media24 to take over the competition. Due to the prestigious<br />
nature of the competition, the transfer of the ownership of the<br />
competition to the BMR was supported by renowned economists<br />
who have competed in the event on an annual basis for many<br />
years. The key rationale for the support for the continuance of the<br />
competition was that the competition had for long occupied the<br />
centre stage of economic thinking and growth projections in the<br />
country.<br />
Enter the BMR<br />
Recognising the value of the competition, the BMR agreed to take<br />
ownership of the competition from the start of 2022. To sustain<br />
the traction of competition, the BMR commenced by setting up<br />
the required management and administrative systems to host<br />
the Economist of the Year (EoY) Competition. Given the strategic<br />
position of the BMR in the Unisa Corporate Group structure, the<br />
Unisa Executive Management Committee in 2022 adopted the<br />
co-branding of the Economist of the Year (EoY) Competition. Thus,<br />
ever since 2022, the EoY trademark has collectively been co-branded<br />
by the BMR and Unisa in support of sustainable development and<br />
to promote economic growth, predictions and debates in South<br />
Africa. On average, a total of 35 of the top economists in South<br />
Africa have participated in the competition each year since 2022.<br />
Forecast variables<br />
The panel of economists who enter the competition are requested<br />
on a monthly basis to submit their forecasts with respect to eight<br />
economic variables, namely:<br />
• Real annual GDP growth rate<br />
• Real annual household expenditure growth rate<br />
• Average annual inflation rate<br />
• Average yield on long-term government bonds in the fourth<br />
quarter<br />
• Average prime interest rate in the fourth quarter<br />
• Average R/$ exchange rate in the fourth quarter<br />
• Average Brent oil price in the fourth quarter<br />
• Annual current account balance as % of GDP<br />
Competition logistics<br />
Since 2022 the BMR has taken ownership of the EoY competition<br />
being governed, managed and operated as follows:<br />
• Monthly engagements with the participating economists.<br />
Requesting the competing economists to submit updated<br />
economic forecasts on a monthly basis.<br />
• Collating and analysing the monthly forecasts. The forecasts<br />
obtained each month are collated and analysed to determine<br />
“consensus” scores on all eight forecasted variables.<br />
• Adjudication of the competition. An independent adjudication<br />
panel consolidates the economic forecasts each month and<br />
identifies a winner and two runners-up for the year based on<br />
a scientific formula. These individuals’ monthly predictions<br />
consistently vary the least from the actual annual economic data<br />
published in the March issues of the South African Reserve Bank<br />
(SARB) Quarterly Bulletin.<br />
• Celebrating the competition and appointing a winner. The<br />
winner and two runners-up of the competition are announced<br />
during a prize-giving ceremony in the following year.<br />
• Preparing monthly competition and competition-winner press<br />
releases. Press releases are issued to the media for publication<br />
on a monthly basis as well as following the announcement of<br />
the top three economists.<br />
The value of the competition to the economy and society<br />
The timely predictions for the leading economic indicators<br />
by the Economist of the Year competition serve to provide<br />
economic forecasts of greatest likelihood, which are of great<br />
value in informing business and investment decisions in<br />
South Africa.<br />
Also, the relevance of the Economist of the Year Competition is<br />
soundly routed in Goal 8 of the United Nations (UN) Sustainable<br />
Development Goals, which aims to promote sustainable economic<br />
growth. Sustained and inclusive economic growth is a prerequisite<br />
for sustainable development, which can contribute to improved<br />
livelihoods for people.<br />
Economic growth can lead to new and better employment<br />
opportunities and provide greater economic security for all.<br />
Moreover, rapid growth, especially among the least-developed<br />
and developing countries, can help reduce the wage gap relative<br />
to developed countries, thereby diminishing glaring inequalities<br />
between the rich and poor.<br />
18 | www.opportunityonline.co.za
ECONOMIST OF THE YEAR<br />
ECONOMIST OF<br />
THE YEAR<br />
Elize Kruger declared the winner of the 2023 BMR/Unisa Economist of the Year Competition<br />
The Bureau of Market Research (Pty) Ltd (BMR) and the<br />
University of South Africa (Unisa) have been hosting the<br />
Economist of the Year Competition since 2022. The winner<br />
and two runners-up of the 2023 BMR/Unisa Economist of<br />
the Year competition were announced at an awards ceremony held<br />
in Pretoria on 20 June 2024.<br />
The winner of the 2023 competition is Ms Elize Kruger, an<br />
independent economist. Ms Kruger has nearly three decades<br />
of experience in both macro and microeconomic analyses and<br />
forecasts. She has worked in the financial, health, transport and<br />
energy sectors.<br />
As an independent economist, she provides consulting<br />
services to a wide variety of clients, compiling forecasts of key<br />
macroeconomic indicators and publishing in-depth reports,<br />
while also delivering frequent media commentary and research<br />
briefs on important economic events. Although Ms Kruger has<br />
participated in the competition for several years, this is the<br />
first time she has won after she was a runner-up in the 2022<br />
competition. The two runners-up of the 2023 competition are<br />
Dawie Klopper, a financial advisor and investment economist<br />
at PSG Wealth, and Jee-A van der Linde, a senior economist at<br />
Oxford Economics Africa.<br />
Overall, the three top economists provided the most<br />
accurate and consistent forecasts for eight economic variables<br />
during 2023. More than 30 of South Africa’s top economists<br />
participated in the competition.<br />
Runners-up<br />
Economist of the Year, Elize Kruger.<br />
Dawie Klopper.<br />
Jee-A van der Linde.
MARKETS AND ELECTIONS<br />
Markets want predictability<br />
Political events that do not achieve sustainability,<br />
predictability and political stability have negative<br />
consequences for economies. This was the resounding<br />
sentiment by panellists at the Democracy and Markets<br />
Investment media roundtable hosted by Standard Bank Investment<br />
Solutions in July 2024.<br />
Standard Bank economists, executives and investment leaders<br />
were joined by independent experts to unpack the big election<br />
year. They explained how the potential for political uncertainty<br />
could reach new heights which could create volatile conditions<br />
in financial markets and concerns for developing markets that are<br />
vulnerable to election-induced market volatility.<br />
Addressing the potential economic implications of the elections<br />
(locally and globally) in the first panel were Goolam Ballim, Chief<br />
Economist at Standard Bank Group; Kevin Lings, Chief Economist,<br />
STANLIB; Prof Busisiwe Mavuso, CEO of Business Leadership South<br />
Africa; and Dr Sthembile Mbete, Political Sciences Senior Lecturer<br />
at the University of Pretoria.<br />
“During the last three years, South Africa has seen a stabilisation<br />
process occur. The political economy and microeconomy have<br />
strengthened, allowing an upward political trajectory to begin,”<br />
said Mavuso. “Sixty percent of the voters chose two parties.<br />
Despite their ideological differences, the ANC and DA are now<br />
PIM_<strong>Opportunity</strong>_Magazine_Ad_210x135_FA.pdf 1 2024/07/15 09:20<br />
welded together in a shared drive to introduce good governance.<br />
This is a sound bedrock that is promising for the future.” Panellists<br />
expressed how voting patterns worldwide had shifted dramatically.<br />
Interrogating whether elections are the market movers investors<br />
believe them to be, the panellists said that 2024 was unique, with<br />
elections scheduled in 70 countries. For financial markets, these<br />
events could result in increased investor confidence, higher levels<br />
of investment and favourable socio-economic conditions.<br />
However, there is also the other side of the coin, particularly for<br />
emerging economies, which could find these times particularly<br />
challenging. A second panel discussion discussed the implications<br />
of elections on fixed-income activities, including bonds, treasuries<br />
and other debt instruments. South Africans’ attention will remain<br />
on the ability of the GNU to set viable economic strategies.<br />
STEP INTO A SUSTAINABLE<br />
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providing consistently superior risk-adjusted returns for our clients.<br />
Environmental, Social and Governance is a core input in our systematic<br />
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Step into your future with a team of experts who understand that the<br />
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Please note there are risks involved in buying or selling a financial product, and past performance of a financial product is not necessarily a guide to future<br />
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20 | www.opportunityonline.co.za
INTERVIEW<br />
A catalyst for<br />
regional development<br />
Professor Andrew Crouch, Vice-Chancellor of Sol Plaatje University,<br />
reflects on a decade of achievement and outlines future goals.<br />
Andrew Crouch, Vice-Chancellor<br />
and Principal, Sol Plaatje University.<br />
Biography<br />
Andrew Martin Crouch was born in Kimberley and is an alumnus of William Pescod<br />
High School. This son of the Northern Cape returned to his roots to take the helm<br />
at Sol Plaatje University in April 2020 as its second Vice-Chancellor and Principal.<br />
During his time at the University of the Witwatersrand, where he was Executive Dean<br />
of the Faculty of Science, Professor Crouch introduced new pedagogies in the digital<br />
sphere, promoted the integration of technology into teaching and championed the<br />
Global Change and Sustainability Research Institute. Professor Crouch has placed<br />
great emphasis on the importance of engagement, partnerships and fostering sound<br />
relationships with all university stakeholders and surrounding communities.<br />
What is the outstanding achievement of SPU’s first 10 years?<br />
The establishment of Sol Plaatje University (SPU) was part of<br />
a national strategic initiative to improve higher education<br />
penetration in the Northern Cape and act as a catalyst for<br />
regional development. We have achieved these by creating a<br />
stable and viable institution of higher education that talks to<br />
the needs of the Northern Cape Province and provides access<br />
to students who were truly under-served, while maintaining a<br />
high level of fiscal discipline and excellent governance.<br />
Where would you like SPU to be in five years’ time?<br />
We want to have a well-developed research profile; we want<br />
to have maintained our position as the university with the<br />
highest pass rates for quintile 1 to 3 students; and through our<br />
community engagement we want to be known as successful<br />
social justice champions.<br />
What defines an excellent university?<br />
Engaging with a sense of ubuntu; showing mutual respect;<br />
ensuring equity of access, outcomes and provision; fostering<br />
innovation; having a strong ethic of accountability and operating<br />
at peak efficiency.<br />
To what extent is SPU shaping its own research<br />
identity through initiatives such as the Risk<br />
and Vulnerability Science Centre?<br />
SPU has at its core a strong ethic of social justice so our research<br />
and community endeavours will reflect that and our location at the<br />
edge of the Kalahari Desert and within a perennially under-served<br />
province will reflect our research themes.<br />
Are there plans to offer further degrees and diplomas?<br />
We will soon have a complete programme qualification mix<br />
(PQM) which will include the offering of doctoral studies (PhD)<br />
studies. From 2025 we will be able to offer the following additional<br />
postgraduate qualifications:<br />
• Master of Public Management and Governance<br />
• Master of Arts<br />
• Master of Science in Biological Sciences<br />
• Master of Science in Computer and Information Sciences<br />
• Master of Science in Mathematical Sciences<br />
• Postgraduate Diploma in Management<br />
Future academic offerings will include Geology, Applied Health<br />
Sciences and Indigenous Studies.<br />
To what extent is SPU working with the Square<br />
Kilometre Array (SKA) radio astronomy project<br />
and renewable energy companies?<br />
At the outset SPU was positioned to significantly contribute to the<br />
development of the intellectual and technical capacity that will<br />
be capable of adding value to the SKA data mission. SPU’s focus<br />
on data science was intended to develop the capacity not only to<br />
engage with the storage and management of the data, but also<br />
the actual analysis and interpretation of very large quantities of<br />
unstructured data sets. This has not yet taken place. Our excellent<br />
data science graduates are being scooped up by the financial<br />
services sector.<br />
We are seeking pathways to engage with renewal energy<br />
companies and hope that our stakeholder initiatives this year will<br />
lead to success in this area.<br />
www.opportunityonline.co.za | 21
EDUCATION<br />
Transforming<br />
rural education<br />
Coding and robotics: a pathway to future talent.<br />
In the vast expanse of the Northern Cape, educational opportunities<br />
were once a rarity. However, the introduction of the Coding and<br />
Robotics Programme implemented by the Siyafunda Education<br />
Foundation (SEF) has brought a transformative change to this<br />
region. This initiative has not only empowered learners but also<br />
highlighted the potential for future growth and support, positioning<br />
the youth as the high-potential talent of tomorrow.<br />
Siyafunda Education Foundation provides innovative, hands-on<br />
STEM educational experiences and resources to rural and semi-urban<br />
education ecosystems in South Africa. Our programmes bridge<br />
identified educational gaps and prepare education ecosystems<br />
with relevant skills for future success. By engaging communities<br />
in programme development, SEF ensures that initiatives are<br />
culturally sensitive and foster local ownership. Through our strategic<br />
partnerships with tech companies, NPOs and donors, we bring<br />
sustainable technology, purposeful research and stable funding to<br />
rural areas. SEF not only promotes academic excellence but also drives<br />
economic growth by training facilitators, supporting local businesses<br />
and creating job opportunities.<br />
SEF aspires to be a focused STEM leader, a valued community<br />
collaborator and partnership powerhouse, aligning with the<br />
Sustainable Development Goals of the United Nations and committing<br />
to making a lasting impact.<br />
Key challenges<br />
Learners in the Northern Cape faced significant challenges due to<br />
limited resources at home and under-resourced classrooms. This<br />
underscored the critical need for targeted intervention to bridge the<br />
educational gap in the province and create a foundation for children<br />
from the area to thrive.<br />
Programme implementation<br />
Launched in early 2023, the Coding and Robotics Programme<br />
introduced several key components:<br />
• Interactive workshops: Engaging hands-on coding and robotics<br />
sessions that captivated students' imaginations.<br />
• Teacher training: Empowering educators with contemporary skills<br />
to enhance their teaching methods.<br />
• Resource provision: Supplying essential technology to schools to<br />
ensure effective learning.<br />
Learners actively engaged in robotics, showcasing the power<br />
of communication, teamwork and collaboration in a dynamic<br />
and respectful environment. This hands-on experience fosters<br />
essential skills for future success.<br />
Impact on schools<br />
Learners participating in the Robotics Programme have shown<br />
remarkable academic improvements compared to their peers<br />
not involved in the programme. The hands-on, technologydriven<br />
approach not only enhanced the learners’ engagement<br />
and understanding but also boosted their overall academic<br />
performance and confidence. Additionally, SEF's contributions<br />
include providing nutritional packs to all learners, financial<br />
assistance to facilitators and access to vital resources for<br />
teachers and learners.<br />
The power of support and endless possibilities<br />
The programme's success can be further realised by extending<br />
its reach to more schools, providing advanced tools and<br />
infrastructure and fostering community pride through the<br />
celebration of achievements. Sustainable development will<br />
be achieved by creating real-world application opportunities<br />
through strategic partnerships.<br />
Conclusion<br />
The Coding and Robotics Programme has revolutionised<br />
education in the Northern Cape, demonstrating that with<br />
the right support, learners can achieve extraordinary success.<br />
Continued and expanded support will further uplift the<br />
community, cultivating a generation of innovative thinkers<br />
and problem solvers prepared for the future. Investing in<br />
these young minds is not just impactful but essential for<br />
lasting change. Together, we can break barriers and build a<br />
legacy of empowerment and excellence in the heart of the<br />
Northern Cape.<br />
22 | www.opportunityonline.co.za
Igniting Minds,<br />
Igniting Shaping Futures<br />
Futures<br />
Who Is Siyafunda?<br />
What Do We Do?<br />
The Is Siyafunda Education Foundation (SEF) is committed SEF drives transformation<br />
Who Is Siyafunda?<br />
What<br />
in<br />
Do under-resourced<br />
We Do?<br />
regions<br />
to addressing South Africa's educational challenges by through holistic school and community development.<br />
bridging the gap in STEM education. As a registered non-<br />
Partnering with companies, mines, IPPs, and individuals,<br />
Igniting Minds, Shaping Futures<br />
profit organisation, SEF empowers young minds and we create sustainable impact through bursary funds,<br />
The The Siyafunda Education Foundation (SEF) is is committed<br />
SEF drives transformation in under-resourced regions<br />
transforms communities through innovative STEM multi-year projects, and community building initiatives.<br />
to to addressing South programmes. Africa's We act educational as catalysts challenges for change, igniting<br />
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Scan To Connect<br />
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BIOMASS INCOME STREAMS<br />
Branching<br />
out with<br />
energy plant<br />
and biomass<br />
optimisation<br />
The Commercial Director of Associated Energy<br />
Services (AES), Dennis Williams, reveals how the<br />
timber sector is not only generating its own power<br />
from internally generated by-products, but is<br />
now creating new income streams from biomass.<br />
AES is an operations and maintenance (O & M)<br />
service provider to the steam and boiler sector.<br />
The timber industry contributes close to 5% of national<br />
gross domestic product (GDP) and has an extremely<br />
complex value chain. AES has worked closely with<br />
sawmills and related downstream businesses for<br />
many years.<br />
“One can rest assured that somewhere in the value chain,<br />
thermal energy is required to condition or soften wood chips,<br />
or even dry them,” Williams points out. Therefore, the timber<br />
sector needs to ensure that its energy plant is efficient, reliable<br />
and resilient in the face of growing input costs and broader<br />
economic pressures. While working alongside a number of<br />
tissue manufacturers, a kraft paper producer and a large board<br />
manufacturer, AES has helped improve boiler efficiency, steam<br />
quality and boiler reliability. This it has done by cleaning up and<br />
reducing emissions through its operations and maintenance<br />
service implementation, including energy plant upgrades and<br />
project management.<br />
Throughout all the processes, safety and asset care are<br />
priorities. As many plants within the timber sector are old, Williams<br />
emphasises that pressure vessel (boiler) safety is crucial.<br />
AES’s ISO 45001 certification, including the management and<br />
legal compliance of boilers, is therefore particularly important.<br />
Similarly, the company’s ISO9001, ISO14001 and ISO45001<br />
certifications in energy plant operations and maintenance set<br />
24 | www.opportunityonline.co.za
BIOMASS INCOME STREAMS<br />
Branching out<br />
Over the past decade, Williams reports that AES has<br />
witnessed much realignment within the timber value<br />
chain: “We are now engaging with companies looking to<br />
invest in new plant and equipment, providing them with<br />
more efficient energy and water utilisation throughputs<br />
and economies of scale, which are currently key operational<br />
and economic considerations.”<br />
He also points out that AES considers what clients plan<br />
to do with the biomass generated and how to manage the<br />
quantities. “We try to find a solution using as little of this<br />
vital resource as possible, enabling our client to on-sell the<br />
rest. Getting the right balance is imperative,” he explains.<br />
Closely related to this is AES helping to source greener<br />
fuel sources such as timber biomass for clients in other<br />
sectors wanting to offset the use of fossil fuels by using<br />
biomass to fire their boilers. However, there are challenges.<br />
High fuel costs mean transport of biomass from rural<br />
sawmills is expensive. Distances travelled could also<br />
inadvertently increase users’ carbon footprint in the name<br />
of sustainability, Williams warns.<br />
“Furthermore, as timber biomass has a low calorific<br />
value, the actual content per mass is low and bulky:<br />
loaded onto a 30-ton vehicle, it might only yield 11 tons<br />
of fuel. If loaded with coal, there will be 25 to 26 tons<br />
of material with a far higher calorific value, potentially<br />
double, depending on how much moisture is in the wood<br />
biomass,” he explains.<br />
Another challenge is the cost of biomass, a key deciding<br />
factor for new plant investment: “It all comes down to<br />
economics. The originator wants to sell it for the best<br />
possible price. So, while the burning of biomass rather<br />
than the burning of coal is preferable, our client may not<br />
be able to pay the price that the timber mill wants.”<br />
AES apart from competitors, who either have no ISO or only<br />
manufacturing compliance.<br />
This is key within the timber sector as AES is often responsible<br />
for the operation and maintenance of clients’ energy plants on sites<br />
in remote locations. A large part of AES’s competency and value<br />
offering to its clients lies in on-site boiler and energy plant staff<br />
training and management, made all the more challenging by low<br />
literacy levels on some sites.<br />
“We have been privileged to really make a difference by<br />
facilitating literacy training where required, thereby unlocking<br />
further career path growth – and quality of life – for those<br />
participating,” Williams enthuses.<br />
www.opportunityonline.co.za | 25
BIOMASS INCOME STREAMS<br />
Future growth<br />
For AES, the timber sector is currently very fluid:<br />
“Many timber residue producers with spare biomass<br />
are trying to figure out what this new marketplace<br />
means for them. If they are not using the material<br />
themselves, they want to maximise what they can<br />
do with it. If AES wants to purchase it to convert into<br />
a fuel source for thermal energy, we need a 10-year<br />
agreement to secure the funding for a new biomass<br />
steam plant,” he notes.<br />
He continues: “The coal, gas and liquid fuels<br />
market is very established. We know the parameters<br />
and how the economics work. However, in the<br />
biomass space, it is a bit of a ‘Wild West’ scenario,<br />
because companies are deciding what works best<br />
in this volatile, dynamic marketplace.<br />
“In summary, whether AES is optimising operations<br />
and maintenance or innovating around the use of<br />
biomass as a greener fuel source we are confident<br />
that the timber sector provides a real ‘plantation’ of<br />
opportunity to assist plant owners in ‘seeing the wood<br />
for the trees’ and processing this as optimally and<br />
successfully as possible,” Williams concludes.<br />
ABOUT AES<br />
AES is an experienced steam and boiler operations and<br />
maintenance (O&M) service provider. The company has<br />
been in existence for over 25 years and is widely regarded<br />
as the leading O&M provider in steam and boiler operations<br />
and maintenance service in South Africa.<br />
Target industry sectors include power generation,<br />
chemical, plastics and rubber, timber, pulp and paper, textiles,<br />
food and beverage, dairy, poultry and mining.<br />
AES’s purpose is to assist industrial plants to optimise<br />
their energy production processes and achieve energy<br />
usage best practices through the following offerings: the<br />
mitigation of risk and the reduction of plant downtime; the<br />
procurement of efficient fuel combustion; assistance with<br />
the care of assets over the plant’s lifetime; diversification<br />
of the plant’s energy<br />
resources; improvement in site operations; and a reduction<br />
in carbon footprint. AES subscribes to the highest ethics<br />
and operates according to high safety standards, process<br />
excellence and product and service innovation, exhibiting<br />
a commitment to quality, technology advancement and the<br />
development of human capital.<br />
AES invests heavily in training and the promotion of<br />
talented people on an equal-opportunity basis into the<br />
industrial operations environment. The company believes<br />
that making a positive difference to communities and the<br />
environment is the best way to ensure that everyone benefits<br />
from good work.<br />
AES is ISO9001, 14001 and 45001-certified, ensuring that<br />
the company maintains a focus on achieving, benchmarking<br />
and optimising its processes and activities.<br />
26 | www.opportunityonline.co.za
SUSTAINABLE BUSINESS<br />
Nine easy steps to<br />
a greener business<br />
René Botha, Regional Investment Manager at Business Partners Limited, provides<br />
small business owners with nine simple changes that they can implement in<br />
their operations to become greener, more sustainable businesses.<br />
For every conscious step that a business takes to become environmentally more sustainable, the positive impact is so much broader<br />
than the business itself. Environmental awareness and habits practised in the workplace are likely to spread to the households<br />
of the workers, says René Botha, Regional Investment Manager at Business Partners Limited. This makes the community of<br />
business owners one of the most important constituencies of the environmental movement. Earth Day, celebrated globally for<br />
over half a century, is a good starting point for business owners who want to take their first step towards sustainability, or for those<br />
who want to consolidate their progress.<br />
Becoming sustainable need not be an all or nothing affair, says Botha. It is a process that all business owners will have to go through<br />
along with the rest of society. She offers the following nine easy steps that business owners can implement on the journey towards<br />
greener, more sustainable business operations:<br />
1End single-use plastics<br />
Find alternatives for all the single-use<br />
plastic that your business consumes.<br />
“If you stock your board or staff-room<br />
with bottled water, consider replacing<br />
it with a water dispenser and glass<br />
carafe. Similarly, plastic cutlery and<br />
food containers can be replaced<br />
with wood, paper or glass. If your raw materials come in<br />
single-use plastic containers or wrapping, discuss reusable<br />
systems with your suppliers,” she says.<br />
3<br />
Start a recycling system<br />
for your business<br />
Once your staff know to separate the<br />
different types of waste, it is very easy<br />
to maintain, and soon it becomes a<br />
habit they will all take home with them.<br />
2<br />
Package in paper, wood and glass<br />
The public is increasingly coming<br />
to expect the items they buy to be<br />
packaged in paper, wood or glass<br />
rather than plastic. It’s reusable and<br />
biodegradable. As Botha asserts, “Even<br />
if you have to use a lot of plastic in<br />
your manufacturing processes or your<br />
packaging, consider using some of the<br />
many biodegradable plastics that are becoming available, and<br />
look for ways to reduce the amount of plastic used.”<br />
28 | www.opportunityonline.co.za<br />
Recycling produces winners. If businesses recycle efficiently,<br />
income streams can be created for waste pickers and collection<br />
depots. A winner in the national Petco awards, which recognise<br />
inspiring work within the collection and recycling value chain,<br />
was GreenWay Africa, in partnership with Heineken for Project<br />
Vuselela in the Durban area.
4<br />
Combine sustainability<br />
with team building<br />
In Botha’s opinion, you can<br />
kill two birds with one stone<br />
by structuring the greening<br />
of your business with teambuilding<br />
exercises. “Let your<br />
staff members compete to<br />
see which team can use the least plastic, save the<br />
most energy, or reduce their waste most. Taking<br />
your staff out for a beach or veld clean-up can be a<br />
great team-building exercise. These can be planned<br />
to coincide with global initiatives such as Earth Day<br />
or Plastic-free July.”<br />
Go solar<br />
As the price of solar equipment falls, the case for installing<br />
a solar system for your business is becoming more and<br />
more compelling. The latest estimates<br />
show that a solar system can pay for<br />
5<br />
itself in as little as six years. “Initiatives<br />
such as Business Partners Ltd’s Energy<br />
Fund, which provides finance of between<br />
R250 000 and R2-million to businesses to<br />
install alternative energy sources, make it<br />
even easier to go solar,” Botha says.<br />
Reduce your power<br />
consumption<br />
Small changes in your<br />
business can make a<br />
big difference to your<br />
power consumption,<br />
including changing your<br />
lights to LED, switching<br />
off unused lights and<br />
equipment, boiling only<br />
the amount of water you<br />
need and removing unused<br />
chargers and power cords from<br />
the wall plugs are good ways to start. And once these<br />
habits are instilled in your staff members, they are sure<br />
to do the same in their homes.<br />
Use energy-efficient machines<br />
According to Botha, it’s important to keep an eye out for more<br />
energy-efficient alternative machinery, from office equipment to<br />
furnaces, that regularly come to the market in nearly every industry.<br />
“Not only does it make your business greener, but it is sure to give you<br />
a competitive edge.”<br />
Insulate your building<br />
It costs a bit in the beginning, but over time you<br />
will save a lot in energy usage by making sure<br />
your premises are well insulated. Consider the<br />
guidelines in Business Partners Limited’s Green<br />
Building initiative, through which business owners<br />
can earn a rebate on their financing costs if the<br />
premises which they buy, build or retrofit qualify as<br />
a green building.<br />
9<br />
Become<br />
water-wise<br />
As Botha concludes, “With plastics<br />
and electricity, there are many ways<br />
in which a business can reduce its<br />
use of water. Teach your staff to<br />
report leaks and stop dripping taps.<br />
Harvesting rainwater is relatively<br />
inexpensive and helps to preserve<br />
this precious resource.”<br />
PHOTO LEFT: Petco / PHOTO RIGHT: Mali Maeder on Pexels www.opportunityonline.co.za | 29
CUSTOMER EXPERIENCE<br />
Why customer experience<br />
is now considered the<br />
number one differentiator<br />
By Nathalie Schooling, CEO of nlightencx.<br />
Businesses and brands work extremely hard at differentiating<br />
themselves from their competitors – with good reason.<br />
You create loyalty, establish credibility and enhance your<br />
market status, among other things.<br />
Some businesses do it very well and truly cement their place<br />
in the hearts and minds of their target market. Think of Nando’s<br />
with its playful, cheeky and often daring advertising campaigns.<br />
Or Coke’s iconic, consistent and near-ubiquitous imagery that<br />
portrays an aspirational lifestyle.<br />
Trader Joe’s, a popular US grocery chain, relies not on big ad<br />
budgets, but on being informal and super-friendly. Staff are always<br />
smiling and do random acts of kindness, such as handing out<br />
balloons to children in the store. Signs advertising special deals<br />
are handwritten, funky and say things like “Our chicken tenderloins<br />
are as tender as a Lionel Richie ballad”.<br />
Price is a differentiator too. “Cheapest prices in town” slogans<br />
turn up everywhere. The problem with that strategy is that, as soon<br />
as a competitor undercuts you, your point of differentiation is lost<br />
unless you go lower. And so it goes… until you’re bankrupt.<br />
Product excellence is a better differentiator. Just ask Apple.<br />
The drawback, though, is that you’re only as good as your latest<br />
product. If someone out-innovates you, your advantage disappears<br />
unless you can, in turn, out-innovate them with a new product. It’s<br />
an expensive and never-ending technology race.<br />
Similarly, if a competitor replicates your product and sells it at<br />
a lower price (did anyone say “China”?), you may be in trouble.<br />
Customer experience emerges as the biggest differentiator<br />
But while all of the above strategies can be a differentiator for your<br />
company or brand, either alone or in combination, there’s a new<br />
and rapidly evolving world out there. Customers, whether in B2B<br />
or B2C, now have different attitudes, motivations and expectations<br />
than just a few short years ago.<br />
Time and again, research by credible organisations like PwC,<br />
Gartner and Salesforce is showing that customer experience (or<br />
CX if you prefer) has emerged as the most important differentiator.<br />
PwC, in a research article created for its Consumer Intelligence<br />
Series, notes that “Good customer experience leaves people feeling<br />
heard and appreciated. It minimises friction, maximises efficiency<br />
and maintains a human element.” Emphasises PwC: “Experience is<br />
everything. Get it right.”<br />
Gartner, the global technological research and consulting firm,<br />
highlights the value of CX in one of the key findings of its “Creating<br />
a High-Impact Customer Experience Strategy” report, noting that<br />
“CX drives over two-thirds of customer loyalty, outperforming<br />
brand and price combined”.<br />
Salesforce, an international customer relationship management<br />
software company, published a 29-country study in 2022 entitled<br />
“State of the Connected Customer”, which found that almost 90%<br />
of respondents believed the experience a company provides is as<br />
important as its products or services.<br />
Nathalie Schooling, CEO of nlightencx<br />
30 | www.opportunityonline.co.za
CUSTOMER EXPERIENCE<br />
Customers do not base their<br />
decisions on price alone.<br />
CX in the South African context<br />
“Ah”, you say. “But that’s in developed-world countries. South Africa<br />
is different.”<br />
No, it’s not. In mid-2023, shortly after the release of the FNB/<br />
BER Business Confidence Index for the second quarter of the<br />
year showed that South Africans had not been as uncertain<br />
about their economic wellbeing since the third quarter of<br />
2020, we did a snap poll among our clients at nlightencx to<br />
explore the state of the market. Surprisingly our clients, which<br />
are all businesses, reported that their customers were not basing<br />
their purchasing decisions on price alone. Instead, it was excellent<br />
customer service that was most important. Better products/<br />
services were on a par with price in order of importance.<br />
Given the lack of economic confidence and steep price rises at<br />
that time, we wouldn’t have been surprised if people told us they<br />
were basing every purchasing decision on price.<br />
Instead, what we found was that “it all comes down to price”<br />
was only listed by 22% of respondents to our snap poll as their<br />
decisive factor. “Great customer experience” came out tops<br />
(56%), with “better products/services” also listed by 22% of<br />
respondents. What this tells us is that a knee-jerk strategy<br />
based on internal cost-cutting to achieve the lowest possible<br />
price point is unlikely to deliver the right results for South<br />
African businesses. Of course, people want a good deal,<br />
especially when they’re hurting financially. But many are<br />
also smart enough to know that “good deal” and “lowest<br />
price” are seldom the same thing.<br />
Communicate via the channels<br />
that work best for the client.<br />
PHOTOS: Freepik, Mika Baumeister on Unsplash
CUSTOMER EXPERIENCE<br />
The importance of retaining customers<br />
The results of that snap poll tie in with findings from statistical<br />
long-term research conducted over two years by Professor<br />
Charlene Gerber, Head of Research at nlightencx and an<br />
Associate Professor at the University of Stellenbosch Business<br />
School. This showed a clear correlation between consistently<br />
high levels of customer satisfaction and sales, which could be<br />
up to 30% higher.<br />
The important takeout from this is that companies which<br />
keep their existing customers happy are in a better position to<br />
grow than those who are throwing lots of money at sales and<br />
marketing efforts to get new customers. Put another way: you<br />
can increase sales by almost a third, without ever signing up a<br />
new customer. That’s significant.<br />
Figures published in 2023 in Accountants Daily, an Australian<br />
publication, are even more bullish on this point. They indicate<br />
that 65% of a company’s new business comes from existing<br />
customers, and that loyal clients spend 67% more than new<br />
ones.<br />
Further statistics from the publication show that the<br />
probability of selling to an existing client is 60-70%, while the<br />
probability of selling to a new prospect is only 5-20%. Similarly,<br />
existing clients are 50% more likely to try new products.<br />
These figures shouldn’t be a surprise. If a well-cultivated CX<br />
relationship is already in place, it’s usually an easier sell. This<br />
is where cross-selling and up-selling opportunities work their<br />
magic; businesses that offer their existing customers relevant<br />
add-ons are far more likely to achieve solid growth.<br />
In summary, if I had to give South African businesses two<br />
pieces of advice for achieving success, they would be:<br />
• Keeping clients is more important than getting new ones<br />
• Put client relationships at the centre of every action<br />
Put simply: Have great CX!<br />
Top tips for achieving CX success<br />
These are my top tips for creating an<br />
excellent customer experience and building<br />
outstanding loyalty:<br />
• Empathise: Consumers are uncertain<br />
and they’re hurting. Take some time to<br />
talk to your clients and understand what<br />
they are going through. See how you can<br />
adjust their plans or contracts to suit their<br />
financial situation at this time.<br />
• Communicate your intentions: Take<br />
this empathy and include it in all your<br />
communication so that your client knows<br />
that you are behind them.<br />
• Walk the walk: People will pick up on<br />
meaningless slogans and empty marketing<br />
promises and use them against you. Make<br />
meaningful and deliverable undertakings.<br />
• Meet your client where they are at:<br />
Communicate via the channels that work<br />
best for them, not the cheapest and easiest<br />
for you.<br />
• Don’t get too caught up in automated CX:<br />
Not when your customer is so vulnerable.<br />
Certainly, it’s useful, helps with quick<br />
responses 24/7 and can save time and<br />
money but remember that automated CX<br />
is easily replicated by your competitors,<br />
eroding any point of competitive<br />
difference.<br />
32 | www.opportunityonline.co.za
The NBI: Leading the<br />
Private Sector Charge<br />
for Green Skills and Jobs<br />
South Africa is navigating a critical juncture, confronting significant<br />
economic challenges while poised for a transformative energy<br />
transition. The pressing need for a skilled workforce in the<br />
renewable energy sector demands immediate attention. The Just<br />
Energy Transition Skilling for Employment Programme (JET SEP) emerges<br />
as a vital solution, spearheaded by the National Business Initiative (NBI).<br />
This article delves into the strategic importance of JET SEP and the pivotal<br />
role of the NBI in skilling South Africa’s workforce in alignment with the<br />
Just Energy Transition (JET).<br />
The Economic Context: Challenges and Opportunities<br />
South Africa's high unemployment rate, standing at 32.9% in early 2024<br />
with even higher youth unemployment, necessitates urgent and innovative<br />
solutions. Demand-led skills development across emerging value<br />
chains through the energy transition presents a unique opportunity for<br />
economic revitalisation, offering new opportunities for the unemployed,<br />
especially among youth and disadvantaged groups, fostering sustainable<br />
development and inclusive growth.<br />
NBI: Pioneering Transformation<br />
For 29 years, the NBI has championed a transformative socio-economic and<br />
environmental agenda in South Africa. In April 2024, NBI launched the JET<br />
SEP, to coordinate the private sector’s support for the JET Implementation<br />
Plan (JET IP).<br />
The Urgency of Skilling for the Just Energy Transition<br />
Without the necessary skills to execute the JET, the transition risks<br />
being slower and more expensive, potentially requiring<br />
the importation of skilled labour. JET SEP tackles this<br />
challenge by offering a unified, pragmatic approach<br />
to demand-led skilling, mobilising the private<br />
sector resources to skill and place workers into<br />
new green jobs.<br />
JET SEP’s Strategic Approach<br />
Led by the NBI and endorsed by the Presidency’s<br />
JET Project Management Unit, Business Unity<br />
South Africa and the Presidential Climate<br />
Commission, JET SEP stands as the leading<br />
private sector effort on green skilling. Its<br />
inclusive governance structure, comprising<br />
over 50 institutions from various sectors,<br />
ensures comprehensive stakeholder<br />
engagement in achieving JET’s goals.<br />
Key Principles and Intervention Areas<br />
JET SEP is founded on several key principles:<br />
• Scalability: Training a significant number of<br />
unemployed youth and workers annually.<br />
• Inclusivity: Ensuring participation across all<br />
geographies and vulnerable groups.<br />
• Co-design with businesses: Creating skills that align<br />
with job requirements.<br />
• Recognition and accreditation: Providing recognised<br />
and accredited skills across industries.<br />
Complementary Approach: Enhancing Existing<br />
Education and Training Programmes<br />
JET SEP supports five key intervention areas outlined in<br />
the JET IP Skills Chapter:<br />
• JET Skills Ecosystem and Forum<br />
• Skills Development Zones<br />
• JET Skills Needs Assessment<br />
• JET Skills Planning and Support for Government<br />
• Foundational Skills Development<br />
Delivering Impact and Building the Future<br />
JET SEP aims to deliver significant impacts, including:<br />
• A robust evidence base of labour-market data for<br />
effective skills planning aligned with JET.<br />
• Platforms for private-sector engagement in designing<br />
necessary skills interventions.<br />
• Public TVET institutions equipped to deliver demand-led<br />
skills interventions.<br />
• Models of localised JET Skills Ecosystems and SDZs with<br />
proven impact on local economies and communities.<br />
Shameela Soobramoney, CEO of the NBI, emphasises,<br />
“The journey towards a Just Energy Transition is fraught<br />
with challenges but also brimming with opportunities. The<br />
NBI’s JET SEP represents a beacon of hope and a strategic<br />
pathway to harness these opportunities, ensuring that<br />
South Africa can transition smoothly to a renewable<br />
energy future.”<br />
These outcomes will drive South Africa towards a<br />
resilient, sustainable economy, underpinned by a<br />
skilled workforce ready to meet the demands of the<br />
Just Energy Transition.<br />
Shameela Soobramoney, NBI CEO<br />
www.opportunityonline.co.za | 33
MOHAIR SUSTAINABILITY<br />
Protecting the land<br />
for generations to come<br />
SAMIL CEO Michael Brosnahan explains that sustainability is much<br />
more than a project for mohair farmers and producers.<br />
What are the main planks of SAMIL’s sustainability policy?<br />
Our core values are honesty and integrity which translate into<br />
looking after our small piece of the world and everything and<br />
everybody in it. To this end, everything we do is questioned as<br />
to whether it will have a detrimental effect on our environment<br />
or our people, whether it be how we farm our goats on the<br />
land or how we process the material in our factories. We only<br />
use chemicals that have been certified by OEKO-TEX or an<br />
equivalent certification proving that they cause no harm to<br />
humans or animals. We have created a work environment on<br />
our farms and in our factories and offices where all employees<br />
are viewed as assets and are treated as such.<br />
How can more jobs be created in the mohair industry?<br />
More jobs in the mohair industry can really only be created by<br />
creating awareness of this wonderful fibre around the world. The<br />
price of mohair limits its general use so the main end uses are<br />
high-fashion items with exclusive big-name brands.<br />
Are your farmers working on projects to protect the land?<br />
Our farmers are not working on “projects” to protect the land – this<br />
is a constant part of everyday life on the farms. The farmer needs<br />
to protect his livelihood, not just for himself but for his children<br />
and his children’s children. Many of our Angora farmers have been<br />
farming goats on the land for more than 100 years, some into the<br />
second and third generation.<br />
What is the Responsible Mohair Standard? Has<br />
its introduction had the desired effect?<br />
The Responsible Mohair Standard or RMS is an international<br />
voluntary standard that addresses animal welfare on goat<br />
farms as well as managing the “chain of custody” of mohair<br />
from the certified farms through to the final products<br />
purchased by the consumer.<br />
The key values of RMS are:<br />
• protecting animal welfare<br />
• regenerative agriculture<br />
• social responsibility<br />
• traceability<br />
Its introduction has definitely had the desired effect – mohair is<br />
once again globally desired which helps to protect the more than<br />
30 000 people employed in the industry in South Africa<br />
Do you see growth prospects for mohair globally?<br />
There are no doubt growth prospects for mohair globally as it is<br />
such a versatile fibre. We have to strike a balance, though, between<br />
the price that the farmer needs to ensure his mohair clip is an<br />
economic product to farm and the price that the consumer is<br />
prepared to pay for mohair products in the marketplace.<br />
34 | www.opportunityonline.co.za
yarns@samil.co.za | sales@samil.co.za | www.samil.co.za
WHEELING<br />
Putting the<br />
power back in<br />
the hands of<br />
the consumer<br />
Wheeling is a key component of the City of Cape<br />
Town’s drive to ensure power continuity without<br />
collapsing a vital revenue stream. This article by<br />
Enpower Trading, a founding wheeling partner<br />
in the city’s electricity wheeling pilot project,<br />
examines how the private sector will play an<br />
increasingly critical role in power provision.<br />
South Africa is at a critical juncture, influenced by various<br />
significant factors shaping the country’s trajectory, all of<br />
which have far-reaching economic and social implications,<br />
emphasising that the decisions made today will impact<br />
communities and generations to come.<br />
In 2023 the average citizen spent 19.9% of the year with zero<br />
power owing to loadshedding, more than double the amount<br />
experienced in 2022 and almost 10 times as much as 2021.<br />
According to Gaylor Montmasson-Clair, Senior Economist at<br />
Trade and Industrial Policy Strategies (TIPS), of the 11.5GW of<br />
renewable energy capacity installed in South Africa, 6.3GW is<br />
attributed to utility-scale generation through the Renewable<br />
Energy Independent Power Producer Procurement Programme<br />
(REIPPPP). But quite remarkably, 5.2GW comes from private<br />
solar systems, of which half were installed last year alone. To put<br />
that number in context, 2.6GW of solar was installed by private<br />
individuals and corporates across the country in 2023, more than<br />
the generating capacity of Kusile (2 397MW) or Koeberg (1940<br />
MW). In practical terms, this equates to about 7.5-million solar<br />
panels, which would take up an area of almost 100km².<br />
The City of Cape Town<br />
The City of Cape Town is leading the way with a robust energy<br />
strategy that sets out to overcome the energy crisis in South Africa<br />
by building a sustainable energy system, with the plan for Cape<br />
Town to be a net-zero carbon city by 2050.<br />
An integral part of the energy strategy, as explained by Kadri<br />
Nassiep, Executive Director of Energy at the City of Cape Town, is<br />
the stabilisation of the network as a response measure to the crisis<br />
faced. As Nassiep said in a joint Future Cities Africa Episode entitled<br />
“Addressing the Energy Crisis”, the transition to a “future-fit” utility<br />
will provide an optimal energy marketplace that better serves its<br />
people while still maintaining municipal revenues.<br />
The single biggest source of local government revenue is<br />
electricity. About 30% of the City of Cape Town’s revenue is derived<br />
this way. It’s therefore imperative that customers remain on the<br />
municipal grid to avoid “off-grid flight”, which poses a real threat<br />
to municipal income. It is equally important that the city provides<br />
customers with energy alternatives and the option to access<br />
cleaner, cheaper power that aligns with their energy needs and<br />
production of their commodities.<br />
Wheeling is key to the new energy strategy<br />
The private sector will play a crucial role in addressing the future<br />
electricity needs of Cape Town, reducing its reliance on Eskom<br />
through electricity wheeling. Wheeling is the purchase of energy<br />
from a large power generator such as an independent power<br />
producer (IPP), for example, a solar farm or a wind farm or a large<br />
rooftop solar producer, and the transportation of that electricity<br />
through the existing network or municipal grid to an end user or<br />
“offtaker” such as a corporate or industrial user. The introduction<br />
of electricity wheeling in the City of Cape Town Wheeling Pilot<br />
36 | www.opportunityonline.co.za<br />
PHOTO: CCID
WHEELING<br />
Cape Town is keeping down the cost of<br />
keeping the lights on.<br />
Research Project has many benefits, allowing customers<br />
to procure electricity independently from the city while<br />
making use of the existing infrastructure and reducing<br />
their carbon footprint. Enpower Trading is one of the<br />
founding wheeling partners in the city’s electricity<br />
wheeling pilot, helping to implement the proof of concept.<br />
Having signed a Master Power Purchase Agreement<br />
with one of Africa’s largest retailers, Enpower Trading is<br />
facilitating multilateral trades with the offtaker within the<br />
city, putting itself in a position to operationalise larger projects<br />
with the retailer over time.<br />
James Beatty, CEO of Enpower Trading, explains that the<br />
benefits electricity trading brings to the South African marketplace<br />
include increased generation to the grid and diversification of<br />
supply. “The trader has the ability to encourage renewable energy<br />
supply without risk to municipal finances and lengthy processes,<br />
as well as an aggregate energy supply from various IPPs to meet a<br />
specific customer’s total energy demand across their multiple sites<br />
under one master Customer Power Purchase Agreement (cPPA),” he<br />
says. “This increased liquidity and the guaranteed savings assist in<br />
mitigating off-grid flight and support our customers’ transition to<br />
100% renewable energy as they journey toward net-zero.”<br />
In 2024 the City of Cape Town became the first metro to allow<br />
households to sell excess energy back into the grid, having opened<br />
that facility for businesses the previous year. Versofy Solar reported<br />
thousands of queries as a result and by July 2024 the company had<br />
installed more than 50 000 panels on rooftops across South Africa.<br />
The future market<br />
The future trading market will transform the way in which we<br />
purchase and consume energy. As the market evolves, Enpower<br />
Trading will collaborate with municipalities, regulators and other<br />
bodies to ensure municipalities remain revenue-surplus-neutral<br />
and collectively work toward the goals of South Africa’s Just Energy<br />
Transition: decarbonisation, affordability and security of supply.<br />
About Enpower Trading<br />
Enpower Trading is a NERSA-licensed electricity trader actively<br />
collaborating with municipalities and businesses, with the hope<br />
to accelerate the implementation of energy wheeling and trading<br />
to transform the future of energy in South Africa.<br />
PHOTO: Versofy Solar www.opportunityonline.co.za | 37
ENERGY LEADERSHIP<br />
The African Energy<br />
Leadership Centre at Wits<br />
Business School: Empowering<br />
Africa’s Energy Future<br />
We are living in an era of radical transition in energy as the sector<br />
faces unprecedented technological upheaval.<br />
Dr Rod Crompton, visiting adjunct professor at Wits<br />
Business School (WBS), calls it a “tsunami of technology”,<br />
which is turning the market on its head. Electricity,<br />
he says, has become decentralised, digitalised and<br />
democratised and the result is that energy consumers are<br />
becoming energy prosumers.<br />
This is just one of the ways in which the energy sector is fast<br />
evolving and, increasingly, demanding a new breed of highly<br />
skilled and qualified leaders to navigate the way forward.<br />
Dr Rod Crompton, visiting<br />
adjunct professor at Wits<br />
Business School.<br />
Dr Rod Crompton, visiting adjunct professor at<br />
Wits Business School.<br />
Recognising a tremendous skills gap in the energy sector, at a<br />
time when loadshedding in South Africa was becoming the new<br />
norm, Wits University and WBS decided the time was right to<br />
start a centre for energy leadership. In 2017, the African Energy<br />
Leadership Centre (AELC), located at WBS, was established with<br />
Crompton, a veteran energy expert and commentator, at the helm.<br />
“At that time there were no formal programmes at the university<br />
that focused on energy and we had to change that. We were in an<br />
electricity crisis and the sector as a whole was in transition. It was<br />
imperative that Wits made a contribution to the energy sector and,<br />
after much research and consultation with industry, we decided to<br />
focus on leadership development,” says Crompton.<br />
The WBS Master’s and Postgraduate Diploma in the field<br />
of Energy Leadership were launched in 2019 and remain the<br />
only programmes of their kind in Africa, and among very few<br />
offered globally. For Crompton, who has spent most of his<br />
career in energy policy, strategy and regulation (working at<br />
the Department of Mineral Resources and Energy and NERSA),<br />
the AELC was an opportunity for him to make a tangible<br />
contribution and share his decades of experience.<br />
“I had collected a lot of knowledge and it made sense to pass it<br />
on. When Wits approached me to spearhead the Centre I agreed to<br />
give it a go,” he recalls. No stranger to teaching – he was involved in<br />
the Minerals and Energy Education and Training Institute (MEETI)<br />
– Crompton set about developing a curriculum from scratch,<br />
which he did in consultation with industry partners as well as Wits<br />
colleagues Professor Ian Jandrell, who at the time was Dean of the<br />
Faculty of Engineering, and the late Professor Bob Scholes, one of<br />
the world's leading scientists on climate change.<br />
A broad and multidimensional subject<br />
“Our first and biggest challenge was deciding both what to<br />
teach and what not to teach. Energy is such a broad and<br />
multidimensional subject and one has limited contact<br />
time in the classroom. Through extensive consultations<br />
with industry and taking into consideration the ‘tsunami’<br />
of transitions happening, a curriculum emerged which<br />
we are very proud of.”<br />
38 | www.opportunityonline.co.za
ENERGY LEADERSHIP<br />
Dineo Tlou, a 2023 graduate of the Master of<br />
Management in the field of Energy Leadership.<br />
There was immediate take-up for the programme with an<br />
inaugural cohort of 40 Master’s students. Now in its fifth year, the<br />
number of applicants has steadily increased for both the Master’s<br />
and Postgraduate Diploma programmes. In addition, companies<br />
such as TotalEnergies regularly request customised programmes<br />
for their leadership teams.<br />
“A highlight for me is seeing young people graduate and<br />
become sought after in the energy industry,” says Crompton. “The<br />
programme is targeted at industry professionals, but at the same<br />
time we hope to grow our base of lecturers and researchers and<br />
encourage more students to do their PhDs.”<br />
In an industry undergoing massive transition, there is significant<br />
scope for research into the future of energy, as well as a need for<br />
more public dialogue and debate.<br />
The AELC has forged strategic partnerships with industry players<br />
and associations over the years, among them the founding donor<br />
Chemical Industries Education and Training Authority (CHIETA),<br />
GIZ, SANEA, the African Energy Chamber and more recently the CS<br />
Bauer School of Business at the University of Houston for a series<br />
of cross-continental webinars exploring energy challenges in the<br />
Global North and South. To advance further research, the AELC<br />
has established two further research divisions, one in hydrogen<br />
with grant funding from CHIETA, and one in energy futures with<br />
funding from Absa.<br />
A good grasp on the whole energy spectrum<br />
“The future is exciting from an energy perspective,” says Crompton,<br />
who recalls the first question he posed to the initial Master’s classes.<br />
“I asked them, what is the most expensive thing that has ever been<br />
built on earth? They were surprised to learn that the answer is the<br />
Gorgon Gas Project off North West Australia. They are even more<br />
surprised when they discover the relevance of that question. In<br />
time, the gas fields off Mozambique will be even bigger. I asked<br />
them – where will you be when this happens?”<br />
While rich in opportunities and natural resources, Africa also<br />
faces a steep uphill battle when it comes to providing access to<br />
clean, affordable energy to all its people.<br />
The challenges are manifold: from the sovereign risk ratings<br />
and the high costs of investing in Africa, the high costs of capital,<br />
the excessive rules and regulations at border posts resulting in<br />
a two-week (or more) waiting period for coal-truck drivers, to<br />
corruption and terrorist activity such as in northern Mozambique,<br />
which caused the gas projects there to stall for two years.<br />
“That is why we are grooming people to handle what are not<br />
only African, but emerging market challenges,” says Crompton.<br />
“And an important part is about developing strong, skilled and<br />
ethical leaders.”<br />
He also notes that a successful leader in energy needs to have<br />
a broad-spectrum understanding of the energy industry, both<br />
locally and globally. Gone are the days of being a “silo expert” in,<br />
say, oil and gas, renewables or electricity.<br />
“Yes, you need core skills, but my advice for anyone entering<br />
this field is to ensure they have a good grasp of the whole energy<br />
spectrum, including energy commodity trading and how global<br />
prices dictate to everyone, not least our corner at the southern<br />
tip of Africa.<br />
“With all this technological change, the former energy silos of<br />
coal, oil and gas, renewables and nuclear have become interlinked<br />
and interchangeable. It’s a whole new approach to energy and our<br />
future leaders need to understand that.”<br />
Applications for the Master of Management in Energy<br />
Leadership and the Postgraduate Diploma in the field of Energy<br />
Leadership at Wits Business School close on 30 September 2024.<br />
www.opportunityonline.co.za | 39
ENERGY STORAGE<br />
CSIR’S Energy Storage Testbed<br />
The Council for Scientific and Industrial Research’s (CSIR) Energy Storage Testbed is a<br />
pioneering initiative that exists under the framework of the World Bank’s Energy Storage<br />
Partnership, in collaboration with the Flemish Government and Vlaamse Instelling voor<br />
Technologisch Onderzoek (VITO) or the Flemish Institute of Technological Research.<br />
Designed to promote energy storage in developing<br />
countries, this state-of-the-art facility is an indoor<br />
battery testbed focusing on battery cells, modules and<br />
packs. With its strategic collaborations and advanced<br />
infrastructure, the CSIR Energy Storage Testbed is revolutionising<br />
the battery testing landscape in South Africa.<br />
Our value proposition<br />
• Comprehensive testing services: The facility offers extensive<br />
testing capabilities, including performance and reliability<br />
testing, battery calendar life, storage capacity, cycle life, depth<br />
of discharge, verification and validation, aged battery services,<br />
battery aftermarket services and postmortem analysis.<br />
• Quality assurance: Ensuring high standards and quality for<br />
lithium-ion batteries, the CSIR testbed helps protect industry<br />
and consumers from substandard technologies.<br />
• Innovative solutions: By repurposing defective and used<br />
batteries, the facility supports waste reduction and promotes<br />
sustainable practices in the battery industry.<br />
Unique selling points<br />
• Advanced infrastructure: Equipped with the latest technology,<br />
including a 32-channel Chroma battery tester and a 1 000-litre<br />
Weiss climate chamber, the facility can conduct rigorous and<br />
precise testing under various environmental conditions.<br />
• Strategic collaborations: Partnering with VITO and supported<br />
by the Flemish Government, the CSIR testbed benefits from<br />
international expertise and cutting-edge resources.<br />
• Support for standards development: Assisting the South African<br />
Bureau of Standards in creating comprehensive standards for<br />
lithium-ion batteries, filling a critical gap in the industry.<br />
• Diverse applications: Catering to a wide range of markets,<br />
including stationary batteries, microgrids, electric mobility,<br />
medical industry, agriculture and road works.<br />
• Energy storage innovation: Addressing the intermittency<br />
challenge of renewable energy and providing solutions for<br />
loadshedding through large-scale battery storage systems.<br />
40 | www.opportunityonline.co.za
ENERGY STORAGE<br />
Accessibility<br />
Located within the Pretoria Campus in South Africa, the facility<br />
is easily accessible to local and international clients. The<br />
testbed’s services are designed to be user-friendly and flexible,<br />
accommodating various client needs and schedules.<br />
Speed and agility<br />
The CSIR Energy Storage Testbed offers quick turnaround times for<br />
testing and results, ensuring that clients can promptly integrate<br />
findings into their operations. The facility’s agility is reflected in its<br />
ability to handle a wide array of battery types and applications,<br />
from initial testing to postmortem analysis.<br />
Pricing<br />
The CSIR testbed provides competitive pricing tailored to the<br />
needs of different stakeholders, from large corporations to small<br />
and medium-sized enterprises (SMMEs). Custom packages and<br />
flexible pricing models ensure affordability and value for all clients.<br />
Advantages<br />
• Cutting-edge equipment: State-of-the-art testing devices<br />
ensure accurate and reliable results.<br />
• Expert team: Highly skilled personnel with extensive knowledge<br />
in battery technology and performance testing.<br />
• Collaborative opportunities: Open invitation for corporates and<br />
SMMEs to collaborate on research and development projects.<br />
• Sustainable practices: Emphasis on repurposing and recycling<br />
batteries, promoting sustainability in the industry.<br />
• Consulting research and development services: Skilled<br />
personnel provide expert advice on renewable energy and<br />
energy storage.<br />
Why engage with the CSIR Energy Storage Testbed?<br />
• Trusted expertise: Leverage the CSIR’s reputation for excellence<br />
in scientific research and industrial support.<br />
• Comprehensive support: From manufacturers to end-users,<br />
receive end-to-end support across the battery value chain.<br />
• Innovative edge: Stay ahead with access to the latest<br />
advancements and best practices in battery technology.<br />
• Sustainable impact: Contribute to environmentally friendly<br />
practices through the facility’s focus on recycling and<br />
repurposing batteries.<br />
• Cross-cutting expertise: Leverage the multidisciplinary<br />
expertise across a wide range of fields.<br />
Contact information<br />
To learn more about the CSIR Energy Storage Testbed and<br />
explore collaboration opportunities, visit CSIR’s official website<br />
or contact the CSIR Energy Storage Testbed supervisor:<br />
Renesh Thakoordeen<br />
rthakoordeen@csir.co.za<br />
Website: www.csir.co.za<br />
www.opportunityonline.co.za | 41
ENERGY<br />
ONE<br />
STOP<br />
STOP<br />
SHOP<br />
SHOP<br />
Status Update<br />
ENERGY<br />
ENERGY<br />
ENERGY<br />
Status Update<br />
ONE<br />
STOP<br />
STOP<br />
The EOSS makes strides for energy developers and progresses on its priority areas<br />
SHOP<br />
SHOP<br />
Subsequent to its establishment in July 2023, the Energy One Stop Shop (EOSS) has made signifi cant strides in its key<br />
priorities Status to support Update and contribute to the country’s energy security. The EOSS has successfully mobilised funding to revolutionise<br />
support mechanisms to Independent Power Producers (IPPs) enabling the transformation of the energy sector<br />
into a sustainable, scaled-up and capacity building sector. This transformation is set to benefi t both industrial and household<br />
consumption of energy across the country.<br />
Status Update<br />
At inception, the EOSS had a database of 114 projects, which were part of the Presidency’s Operation Vulindlela, however<br />
only 64 of those were actively being assisted with facilitating and fast-tracking authorisations, permits and licences from<br />
UNBLOCKED AND<br />
relevant competent authorities by the EOSS. The 64 projects will upon completion and as and when they are connected OUTSTANDING<br />
to the grid collectively provide energy capacity of 11 724MW. Of those 64 projects, four of them with an energy generation CHALLENGES<br />
The EOSS makes strides for energy developers and progresses on its priority areas<br />
capacity of 78MW are operational while nine projects with an energy generation capacity of 774,5MW are in the develop-FOment phase, to its establishment either at financial July 2023, close the Energy or construction One Stop Shop stages. (EOSS) has made signifi cant strides in its key<br />
IN PROJECTS<br />
Subsequent PIPELINE<br />
priorities to support and contribute to the country’s energy security. The EOSS has successfully mobilised funding to revolutionise<br />
support mechanisms to Independent Power Producers (IPPs) enabling the transformation of the energy sector<br />
into a sustainable, scaled-up and capacity building sector. This transformation is set to benefi t both industrial and household<br />
consumption of energy across the country.<br />
By the end of the 2023/2024 financial year in March this year, 40 challenges related to various competent authority<br />
regulatory processes at local and national level were resolved, and the prerequisite authorisations granted.<br />
At inception, the EOSS had a database of 114 projects, which were part of the Presidency’s Operation Vulindlela, however<br />
only 64 of those were actively being assisted with facilitating and fast-tracking authorisations, permits and licences from<br />
relevant competent authorities by the EOSS. The 64 projects will upon completion and as and when they are connected<br />
to the grid collectively provide energy capacity of 11 724MW. Of those 64 projects, four of them with an energy generation<br />
capacity of 78MW are operational while nine projects with an energy generation capacity of 774,5MW are in the development<br />
phase, either at financial close or construction stages.<br />
With the support of the Presidency and National Energy Crisis Committee (NECOM) to fast-track services to IPPs,<br />
the EOSS has also forged strong partnerships with the Energy Council of South Africa, State-Owned Entities,<br />
Government across all three spheres (local, provincial, national), and industry associations such as the South<br />
African Wind Energy Association (SAWEA) and the South African Photovoltaic Industry Association (SAPVIA).<br />
By the end of the 2023/2024 financial year in March this year, 40 challenges related to various competent authority<br />
regulatory processes at local and national level were resolved, and the prerequisite authorisations granted.<br />
In 2024, the EOSS anticipates to deliver on the following key priorities:<br />
• Development and piloting of the Single Window Application Process (SWAP) for IPPs;<br />
• Integration of the Municipal Mapping and Standardisation of Process into SWAP as they relate to energy projects;<br />
• Contributing to adding more unlocked projects to the development pipeline, i.e. at fi nancial close and construction<br />
phases, which would ultimately result in added capacity to the grid<br />
With the support of the Presidency and National Energy Crisis Committee (NECOM) to fast-track services to IPPs,<br />
the EOSS has also forged strong partnerships with the Energy Council of South Africa, State-Owned Entities,<br />
Government across all three spheres (local, provincial, national), and industry associations such as the South<br />
African Wind Energy Association (SAWEA) and the South African Photovoltaic Industry Association (SAPVIA).<br />
In 2024, the EOSS anticipates to deliver on the following key priorities:<br />
• Development and piloting of the Single Window Application Process (SWAP) for IPPs;<br />
• Integration of the Municipal Mapping and Standardisation of Process into SWAP as they relate to energy projects;<br />
• Contributing to adding more unlocked projects to the development pipeline, i.e. at fi nancial close and construction<br />
Energy is a key sector that will transform the economy of our country and align it with the aspirations of our citizens. For the<br />
2024 /2025 financial year, the EOSS will fast track all applications for IPP energy projects across all nine provinces; although<br />
this phases, excludes which would those ultimately that as result are in outside added capacity of the to the various grid Bid Windows and those with Strategic Infrastructure Programme (SIP)<br />
status. The EOSS will also extend it services to Small-scale Embedded Generation (SSEG) power projects, under schedule<br />
2 of the Electricity Regulations Act, to enhance energy security and to support efforts to decarbonise South Africa’s economy.<br />
Energy is a key sector that will transform the economy of our country and align it with the aspirations of our citizens. For the<br />
2024 /2025 financial year, the EOSS will fast track all applications for IPP energy projects across all nine provinces; although<br />
this excludes those that as are outside of the various Bid Windows and those with Strategic Infrastructure Programme (SIP)<br />
status. The EOSS will also extend it services to Small-scale Embedded Generation (SSEG) power projects, under schedule<br />
2 of the Electricity Regulations Act, to enhance energy security and to support efforts to decarbonise South Africa’s economy.<br />
Email: info@enegyoss.gov.za Telephone: 012 394 9599 Website: www.energyoss.gov.za<br />
Email: info@enegyoss.gov.za Telephone: 012 394 9599 Website: www.energyoss.gov.za<br />
ENERGY ONE STO<br />
ACHIEVEMENTS SINCE INCE<br />
PROJECTS IN EOSS PIPEL<br />
LIST A<br />
(Priority Projects)<br />
LIST B<br />
(Updated Projects)<br />
LIST C<br />
(Live Portal)<br />
Project Pipe<br />
List A (Priority P<br />
List B (Updated P<br />
List C (Live P<br />
Unblocked (on t<br />
Unblocked (under c<br />
Total<br />
NUMBER OF PROJECTS<br />
PROVINCE<br />
1 Gauteng<br />
2 Eastern Cape<br />
3 Free State<br />
4 KwaZulu Natal<br />
5 Limpopo<br />
6 Mpumalanga<br />
7 Northern Cape<br />
8 North West<br />
List of projects receiv<br />
List of projects receive<br />
information with which<br />
Projects that voluntar<br />
9 Western Cape<br />
TOTAL<br />
TOTAL<br />
MEG
ENERGY ONE STOP SHOP<br />
ACHIEVEMENTS SINCE INCEPTION IN JULY 2023 UP TO 31 MARCH 2024<br />
PROJECTS IN EOSS PIPELINE AS AT 31 MARCH 2024<br />
Project Pipeline Number of Projects Megawatts<br />
List A (Priority Projects) 10 1 037<br />
List B (Updated Projects) 23 4 041<br />
List C (Live Portal) 23 6 517<br />
Unblocked (on the grid) 4 78<br />
Unblocked (under construction) 4 51<br />
Total 64 11 724<br />
NOTES<br />
LIST A<br />
(Priority Projects)<br />
List of projects received from Presidency with projects that had few challenges with regard to their authorisations and licences.<br />
LIST B<br />
(Updated Projects)<br />
List of projects received from Presidency with projects that more than 3 challenges with regard to their authorisations and licences and also had limited<br />
information with which the EOSS could work with; the developers were then requested to provide updated information in relation to the projects.<br />
LIST C<br />
(Live Portal)<br />
Projects that voluntarily registered on the EOSS to be with assisted with their authorisation and licencing challenges.<br />
UNBLOCKED AND<br />
OUTSTANDING<br />
CHALLENGES<br />
FOR PROJECTS<br />
IN PIPELINE<br />
DEPARTMENTS Unblocked Challenges<br />
Outstanding Challenges<br />
ATNS<br />
DALRRD<br />
Eskom<br />
DFFE<br />
DMRE<br />
DPWI<br />
DWS<br />
Municipal Consent<br />
SAAF / SANDF<br />
Other<br />
0<br />
2<br />
9<br />
3<br />
14<br />
1<br />
1<br />
9<br />
0<br />
1<br />
3<br />
4<br />
19<br />
0<br />
9<br />
0<br />
3<br />
14<br />
3<br />
0<br />
TOTAL 40 55<br />
NUMBER OF PROJECTS PER TECHNOLOGY<br />
CSP<br />
01<br />
NUMBER OF PROJECTS AND MEGAWATTS<br />
PER COMMERCIAL OPERATIONAL DATE<br />
WIND<br />
14<br />
SOLAR<br />
PV<br />
41<br />
511<br />
7<br />
1497<br />
13<br />
3 565<br />
13<br />
1590<br />
3<br />
2000<br />
4<br />
2024 2025 2026 2027 2029<br />
COD YEAR<br />
10<br />
N/A<br />
1<br />
TOTAL: 56<br />
MEGAWATTS<br />
TOTAL: 9173<br />
NUMBER OF PROJECTS<br />
TOTAL: 41<br />
These numbers are subject to change as and when new information presented<br />
PROVINCE MEGAWATTS NUMBER OF PROJECTS<br />
1 Gauteng 986 2<br />
5<br />
2 Eastern Cape 951 8<br />
3 Free State 3 672 15<br />
4 KwaZulu Natal 300 1<br />
8<br />
1 6<br />
5 Limpopo 1 365 9<br />
6 Mpumalanga 1 304 3<br />
7 Northern Cape 1 247 7<br />
7<br />
3<br />
4<br />
8 North West 1 435 9<br />
9 Western Cape 210 2<br />
2<br />
TOTAL 11 470 56<br />
9
E-LOGISTICS<br />
Investment is needed<br />
in last-mile delivery<br />
Anita Erasmus, Head of Business at ecommerce ecosystem Bob Group, argues that intelligent solutions<br />
are needed to overcome security and power issues when it comes to the crucial final stage of the logistics<br />
chain, and to take advantage of a South African market that is going to be worth R307-billion by 2030.<br />
Africa’s last-mile delivery market is expected to be worth<br />
R43-billion by 2030. If one considers that the continent<br />
will be home to some two-billion people by 2050, it<br />
becomes clear that this sector will grow exponentially<br />
and offer many new business opportunities.<br />
Meanwhile, South Africa’s total ecommerce market is on track<br />
to reach R307-billion in the next six years, according to a deep-dive<br />
market assessment by RationalStat.<br />
However, suppose the country’s ecommerce businesses are<br />
to take advantage of the projected boom in online sales. In that<br />
case, their last-mile delivery service offering must correspond with<br />
growth in that market sector. With so much competition, there is<br />
no other option.<br />
“The final leg of delivery profoundly shapes the customer's<br />
journey,” says Anita Erasmus, Head of Business at South African<br />
ecommerce ecosystem Bob Group.<br />
“The speed and seamlessness of the last-mile delivery directly<br />
dictate the pace and quality of your customer’s experiences.”<br />
A typical last-mile delivery service encompasses transporting<br />
goods from a distribution centre to the customer's doorstep. It<br />
begins with order processing and picking and packing items<br />
for shipment, followed by transportation using various vehicles<br />
depending on the scale and location of delivery.<br />
South Africa’s last-mile delivery landscape faces significant<br />
challenges such as security concerns and electricity limitations,<br />
which distinguish it markedly from the US and Europe. Local<br />
companies are compelled to invest in security measures such as<br />
GPS tracking and route planning to minimise their exposure to<br />
potential security threats. At the same time, electricity limitations<br />
hinder the last-mile industry from aligning with the global electric<br />
vehicle trend and reaping the environmental benefits it offers.<br />
Despite these challenges, several notable players in South<br />
Africa are winning the last-mile delivery game by offering smart<br />
solutions that integrate advanced technologies and data solutions<br />
such as GPS tracking, route optimisation algorithms and real-time<br />
tracking to streamline operations.<br />
They leverage data analytics for insights into delivery patterns<br />
and customer preferences, enabling informed decisions for route<br />
planning and resource allocation. They prioritise enhanced<br />
customer experiences with real-time updates and flexible<br />
delivery options.<br />
Erasmus says companies like Pargo, for example, have succeeded<br />
in South Africa with innovative solutions in its counter-pickup<br />
services model. Bob Group has also developed Bob Box, a smart<br />
locker and counter solution that provides secure and confidential<br />
shipments for couriers, online merchants and customers.<br />
“Given the challenges presented by loadshedding, we have<br />
ensured that our Bob Box locker network uses battery power<br />
for always-on service,” Erasmus says. She adds that traditional<br />
logistics firms are increasingly investing in innovative technology<br />
to stay competitive in the market and enhance service offerings<br />
for their customers. Erasmus advises that when assessing a lastmile<br />
delivery option, ecommerce businesses should consider<br />
fundamentals like excellent service delivery, competitive pricing,<br />
customer options and seamless integration.<br />
“Offering customers options for delivering parcels, ranging<br />
from door-to-door services to locker solutions, is essential for<br />
ecommerce businesses. However, to execute this effectively,<br />
businesses must seamlessly integrate with service providers<br />
to ensure a streamlined process, benefiting both fulfilment<br />
operations and the end-customer experience.”<br />
44 | www.opportunityonline.co.za<br />
PHOTOS: Grab on Unsplash, Matt Bloom on Unsplash
E-LOGISTICS<br />
ABOUT BOB GROUP<br />
Bob Group is a merchant and consumer-focused<br />
company born out of an amalgamation between<br />
South African online auction and marketplace<br />
brand Bob Shop and Bob Go, a logistics ecommerce<br />
solution that streamlines order fulfilment and<br />
shipping processes for merchants selling online. The<br />
company offers a variety of tools to assist merchants,<br />
including syncing products to the Bob Shop platform<br />
efficiently, shipping and tracking solutions, payment<br />
facilitation and a software-as-a-service solution for<br />
courier companies.<br />
Anita Erasmus, Head of Business at Bob Group<br />
Last-mile deliveries will boost EV uptake<br />
The fleet industry, and more particularly the last-mile sector,<br />
is likely to be a major driver of the uptake of electric vehicles,<br />
says Justin Manson, Sales Director at Webfleet South Africa,<br />
Bridgestone’s fleet management solution.<br />
During the 2024 State of the Nation Address, President Cyril<br />
Ramaphosa stated that the government was on track to resolve<br />
the most important constraints on economic growth by creating<br />
jobs through electric vehicle manufacturing.<br />
The Automotive Business Council (Naamsa) has stated that<br />
the sale of electric vehicles in South Africa more than doubled<br />
year-on-year in 2023. Sales of new-energy vehicles by 18 industry<br />
brands increased by 100.7% between the first quarter of 2023 and<br />
the second quarter. Eight new electric vehicle models are being<br />
introduced to South Africa in the course of 2024.<br />
While this vehicle category is set to create new jobs and reduce<br />
pollution, in a country that has grappled with up to 11 hours and<br />
30 minutes of loadshedding per day, it begs the question: How can<br />
EV planning be successful to ensure major rollouts and an increase<br />
in purchases, especially in mitigating the effects that blackouts can<br />
have on charging ports and these vehicle models?<br />
Justin Manson, Sales Director at Webfleet South Africa, says, “It<br />
is most likely that the fleet industry (especially last-mile deliveries)<br />
will drive the growth of EVs. South Africa currently has issues with<br />
loadshedding and a generally unstable electricity grid, making<br />
EV use challenging from a planning perspective. Businesses with<br />
vehicles driving short distances could overcome this by installing<br />
charging stations at their depots, using solar and inverters for<br />
overnight charging, and by using artificial-intelligence-powered<br />
fleet management systems to monitor the charging process,<br />
energy usage, charge status and remaining driving distance.<br />
“Not only can drivers cut their driving emissions, but they can<br />
also now personally ensure their vehicles are running on sun<br />
power. Additionally, the environmental impact of EVs is generally<br />
more favourable than that of internal combustion engines,<br />
especially when powered by clean energy sources. EVs have<br />
emerged as significantly better and are the future of mobility. They<br />
offer reduced greenhouse gas emissions, a lower carbon footprint<br />
and decreased noise pollution,” Manson adds.<br />
These factors align with the President’s speech that also<br />
highlighted the implementation of the Energy Transition<br />
Investment Plan. This plan aims to not only reduce carbon<br />
emissions and fight climate change but also to enable economic<br />
growth and create jobs for South Africans. EVs will be an important<br />
part of the plan, by potentially driving investment into green<br />
energy and skills development programmes. The country<br />
plans to collaborate with countries such as Democratic<br />
Republic of the Congo and Botswana, which possess<br />
essential minerals and expertise in the value chain of<br />
automotive manufacturing.<br />
www.opportunityonline.co.za | 45
MARITIME LAW<br />
Namibia and South Africa<br />
are good destinations<br />
for maritime sales<br />
Should Southern Africa be a preferred destination for judicial ship and other maritime<br />
property sales? Lana Stockton, a partner at law firm Bowmans, tackles this question.<br />
Both Namibia and South Africa provide quick and costeffective<br />
solutions in respect of judicial sales or forced<br />
sales of ships and other maritime property.<br />
Southern Africa is often overlooked as a prime<br />
destination for judicial sales or forced sales of ships and other<br />
maritime property. In most cases, the judicial sales that occur in<br />
Southern Africa are as a result of the ship fortuitously calling within<br />
the jurisdiction and being arrested for other claims.<br />
Whether by way of a judicial sale pendente lite (before final<br />
judgement) or a “pre-pack” structured sale and workout by a<br />
financing institution or mortgagee, both Namibia and South<br />
Africa provide for quick and cost-effective solutions in respect of<br />
the judicial sale process, especially when compared with more<br />
well-known jurisdictions like Malta and Singapore.<br />
There are several key benefits of proceeding in<br />
Namibia or South Africa. These include:<br />
South Africa:<br />
• Effective and organised court system<br />
• Judicial sale pendente lite is possible<br />
• Experienced local court-appointed broker offering a competitive<br />
commission structure<br />
• Private treaty, sealed tender and public auction are possible<br />
within abridged time periods<br />
• Ranking of claimants is determined in accordance with the<br />
Admiralty Jurisdiction Regulation Act 105 of 1983<br />
• Strategically positioned geographically<br />
• No court fees or sheriff (Admiralty Marshall) fees<br />
Namibia:<br />
• Effective and organised court system with dedicated Admiralty<br />
Judge(s)<br />
• Judicial sale pendente lite is possible<br />
• Experienced local court-appointed broker offering a competitive<br />
commission structure<br />
• Private treaty, sealed tender and public auction are possible<br />
within abridged time periods<br />
• Ranking is determined by English law as at 1890, which means<br />
that the mortgagee, as a result of English priorities, ranks first<br />
• Safe harbour with low port dues at Walvis Bay<br />
• Strategically positioned geographically<br />
• No court fees or sheriff (Admiralty Marshall) fees<br />
All judicial sales in Namibia and South Africa result in the vessel<br />
being sold with clean title, free of all liens and encumbrances.<br />
ABOUT BOWMANS<br />
Recognising the size and enormous diversity of Africa, our approach to providing legal services across the continent is intended<br />
to offer on-the-ground advice in the countries that matter for our clients. Our presence in Africa is always evolving to meet the<br />
changes that are shaping the future of this vast continent. Currently, we have our own offices in six African countries: Kenya (Nairobi),<br />
Mauritius (Moka), Namibia (Windhoek, Swakopmund), South Africa (Cape Town, Durban, Johannesburg), Tanzania (Dar es Salaam)<br />
and Zambia (Lusaka). Bowmans works with Bowmans Alliance firms in Ethiopia and Nigeria and has special relationships with<br />
firms in Mozambique and Uganda. A non-exclusive cooperation agreement with French international law firm Gide Loyrette Nouel<br />
provides clients access to assistance in Francophone West and North Africa. The Bowmans Shipping team has extensive experience<br />
and expertise in ship arrests, judicial sale, mortgage foreclosure, ship sales and emergency response throughout Southern Africa.<br />
46 | www.opportunityonline.co.za<br />
PHOTO: Namport
MARITIME COORDINATION<br />
Promoting the<br />
maritime sector<br />
Concentrated effort and visible leadership are needed to<br />
blow energy into the Oceans Economy, says South African<br />
International Maritime Institute (SAIMI) CEO Odwa Mtati.<br />
What is the mandate of SAIMI?<br />
SAIMI was established in 2014 as an outcome of the Operation Phakisa<br />
process. A coordinating body was needed to promote maritime education,<br />
maritime skills development and maritime research and innovation as well as<br />
maritime advocacy. Operation Phakisa had identified subsectors and some,<br />
like fisheries, were left out because the assumption was that as a mature<br />
subsector it did not necessarily require government support. The Oceans<br />
Economy is much broader and Operation Phakisa focused on six subsectors.<br />
There had been education and skills development purely from an officer<br />
training point of view, but it did not cater for learners coming into the system<br />
too late because they had not been introduced to the Oceans Economy. That’s<br />
why you find us in schools and working alongside Lawhill Maritime Centre in<br />
Cape Town on the development of online curriculum for maritime economics<br />
and nautical sciences. By the time learners graduate from Grade 12 they<br />
have a sense of what is required in certain disciplines. It is about introducing<br />
learners from a young age. We went a step further to institutionalise it and<br />
have a website called Dive-In and an app. Those that are interested can look<br />
at the broad range of careers available.<br />
Please tell us about SAIMI collaborations.<br />
It is project based, whereby we have a broad range of stakeholders and<br />
partners, based on a specific activity or project. We work with government<br />
departments for the training of peace officers, for example. Or a project<br />
with the Department of Forestry, Fisheries and the Environment or with the<br />
Department of Basic Education. With a constrained fiscus we need<br />
to coordinate more instead of having a duplication of efforts.<br />
Please share some SAIMI success stories.<br />
We recognised the limited engagement of women within<br />
the maritime sector and so we have the Accelerated<br />
Development Programme for Women in Maritime.<br />
This is to increase participation through bursaries<br />
and then there is the formal education shortlearning<br />
programme that we host at the<br />
Nelson Mandela University (NMU).<br />
Another example of a SAIMI-initiated<br />
programme is funded by the National<br />
Skills Fund in partnership with<br />
SABBEX, the boat-building export<br />
council, and the Department of Trade, Industry and<br />
Competition (the dtic), where we provide a set of skills<br />
to support marine manufacturing at False Bay TVET<br />
College in Cape Town.<br />
And you work with Sector Education<br />
and Training Authorities?<br />
We collaborate with SETAs on projects. When we<br />
wanted a central referencing point for seafarer skills,<br />
TETA, the transport SETA, was critical in supporting us<br />
in the development of that framework.<br />
What are the key factors that will ensure the<br />
success of the Oceans Economy strategy?<br />
When Operation Phakisa was launched in 2014 a lot<br />
more people became aware of the potential to use<br />
the ocean to support economic development. That<br />
concentrated effort is no longer there and that’s the first<br />
thing that is needed. The country has a vast coastline<br />
which is under-exploited as a resource that could<br />
help grow the GDP. The second part is that you don’t<br />
achieve much unless you have champions that lead the<br />
process. We identified leaders, from industry itself and<br />
from government. Government has set up structures<br />
which need to have energy blown into them to ensure<br />
we are pursuing the opportunities identified in the draft<br />
masterplan. Finally, a central coordination method is<br />
needed, a focussed strategy with organisations and<br />
departments working together.<br />
Can South Africans be optimistic about the sector?<br />
The Oceans Economy is a sector alongside other sectors<br />
so it is not going to provide a magic wand, but it is a<br />
critical sector that requires a level of intervention both<br />
from industry as well as government. We need a proper<br />
focus and the acceleration of some programmes.<br />
Odwa Mtati, CEO of SAIMI.
MARITIME SKILLS<br />
South Africa needs an<br />
Oceans Economy Strategy<br />
Odwa Mtati, CEO of the South African International Maritime Institute (SAIMI) has called<br />
for collaboration and partnerships to ensure the success of a national strategy.<br />
The South African International Maritime Institute<br />
(SAIMI) Chief Executive Officer, Odwa Mtati, says there<br />
is a need for an Oceans Economy Strategy which will<br />
encourage further growth, investment, job creation<br />
and enhance competitiveness within the sector. Speaking at<br />
the Oceans Economy conference held on 22 May 2024, Mtati<br />
said collaboration and partnerships are key to the success of<br />
implementation of such a strategy.<br />
“Key national strategies have been developed to support<br />
the sector: the Industrial Action Plan, Comprehensive Maritime<br />
Transport Policy (CMTP), Operation Phakisa (Oceans Economy),<br />
Provincial Oceans Economy Frameworks and the draft Oceans<br />
Economy Masterplan. From its 2014 launch, Operation Phakisa<br />
has provided a blueprint for the development of an overarching<br />
oceans economy strategy. Taking into account trends and<br />
developments globally and locally, the Masterplan is expected to<br />
encourage further sector growth, investment, job creation and<br />
enhance competitiveness within SA's oceans economy based on<br />
social compacting,” said Mtati.<br />
In a well-received presentation, Mtati said collaboration and<br />
partnerships were key to the success of the implementation of<br />
the proposed Oceans Economy Masterplan. SAIMI, whose role is<br />
implementing interventions to bridge the skills gaps in the maritime<br />
sector by facilitating coordination between industry, educators,<br />
training providers and government entities, has a network of<br />
partnerships and works in collaboration with various organisations.<br />
These include maritime companies, research institutions, training<br />
providers, international maritime organisations, local NGOs,<br />
community groups, industry experts and academic leaders. Mtati<br />
mentioned technological advances, environmental sustainability,<br />
global trade shifts, infrastructure development, education,<br />
SAIMI manages the National Seafarer<br />
Development Programme (NSDP), which is<br />
funded by the National Skills Fund.<br />
training and workforce dynamics, including regulatory changes<br />
and changes in economic environment as the seven key drivers<br />
of change for the Oceans Economy. “These drivers,” said Mtati,<br />
“among others, collectively impact on the future of the sector<br />
leading towards greater efficiency, technological adaptation and<br />
sustainability." With some of its initiatives already fully operational<br />
and some in various stages of implementation, SAIMI has paved a<br />
path, and continues to do so, for the successful implementation of<br />
Operation Phakisa (Oceans Economy) through the mandate drawn<br />
from the national Department of Higher Education and Training<br />
(DHET) to coordinate the education and skills development work<br />
streams. The outcomes are tangible.<br />
Some of the major initiatives undertaken by SAIMI are:<br />
• The creation of a maritime skills knowledge base which has<br />
culminated in skills audits in various sectors such as aquaculture,<br />
small harbour, marine manufacturing, oil and gas, marine<br />
protection and oceans governance, fisheries and marine<br />
transport. This will culminate in the development of a framework<br />
for the supply and demand for skills in the maritime sector.<br />
• The promotion of maritime research and innovation which has<br />
resulted in the creation of a marine research and knowledge<br />
management roadmap. The roadmap has paved the way<br />
leading to research in marine information technology, maritime<br />
indigenous knowledge systems, oil and gas alternative energy,<br />
ocean governance, maritime economics and the promotion of<br />
small enterprises participating in the Oceans Economy.<br />
• Skills, education and training coordination which has given rise to<br />
the setting up of the National Seafarer Development Programme<br />
to promote seafarer development in the country, supporting<br />
maritime qualification and curriculum development, supporting<br />
the accreditation process of aquaculture demonstration centres, as<br />
well as the training of skippers, small-scale fisheries, Local Economic<br />
Development officials and traditional leaders.<br />
• Capacity building: maritime bursary schemes and post-doc<br />
grants were introduced, capacitation of TVET colleges to offer<br />
maritime qualifications and emerging researchers have also<br />
been given support.<br />
• Maritime advocacy: work done includes the definition and<br />
measurement of the size of the Oceans Economy, maritime<br />
awareness programmes, the promotion of the Oceans Economy<br />
programmes in coastal cities.<br />
www.opportunityonline.co.za | 49
TRANSPORT SKILLS TRAINING<br />
Renewed and updated<br />
strategies to deliver<br />
transport skills training<br />
An extract from the Transport Education Training Authority Strategic Plan 2020–2025<br />
(2023/24 Review) highlights the threats and opportunities faced by the transport sector,<br />
and how the Transport Education Training Authority (TETA) plans to tackle them.<br />
To fulfil our mandate of Skills Development in the transport<br />
sector, it is important to eradicate the labour skills<br />
mismatch in the sector. Statistics South Africa’s Quarterly<br />
Labour Force Survey Q3 of 2020 reported that almost half<br />
(49.4%) of the transport sector employees are plant and machine<br />
operators and assemblers.<br />
These are considered low-skilled workers and are most likely<br />
threatened to be replaced by the emerging technologies. With the<br />
unemployment rate on the rise, there should be measures in place<br />
to prevent the employed (especially the low-skilled workers) from<br />
losing their jobs and to create opportunities for the unemployed<br />
to enter the labour market of the transport sector in the 4IR era.<br />
TETA plans to invest in reskilling and upskilling programmes for<br />
both the employed and unemployed in the industry to ensure that<br />
4IR technology supplements, not replaces labour.<br />
Research provides the foundation for measures desired to<br />
enable businesses to become responsive to the 4IR technology.<br />
TETA is conducting extensive research on the impact of 4IR on the<br />
transport sector. TETA has entered into a research partnership with<br />
the Durban University of Technology and Enterprise University of<br />
Pretoria to conduct 4IR research studies.<br />
These research studies will provide evidence-based decision<br />
making for TETA concerning skills development interventions<br />
relevant to 4IR.<br />
Keeping training on the right track is the task of TETA.<br />
External Environment Analysis<br />
The following external factors in South Africa have been identified<br />
as having a bearing on the effective delivery of skills development<br />
solutions in the transport sector, and therefore, must be addressed<br />
by the TETA strategy.<br />
• Political: five elements, including new government mandates<br />
• Economic: 16 elements, including labour dispute and inflation<br />
• Socio-cultural and ethical: 13 elements, including pandemics<br />
and unemployment<br />
• Technology and information: four elements, including high<br />
data costs<br />
• Environmental (natural): five elements, including the green<br />
economy and energy supply<br />
• Legal and regulatory: three elements, including changes in<br />
legislation<br />
This strategy recommits TETA to continually keep abreast with<br />
emerging trends and adjust its programmes and systems to<br />
respond promptly and adequately to eminent changes. TETA<br />
will integrate new legislative requirements into the design of<br />
its control mechanisms and align its programmes accordingly.<br />
However, in that process TETA will identify and highlight gaps<br />
for the attention of legislators. The information systems will<br />
be reviewed, and compliance processes will be continuously<br />
strengthened to embrace good governance and compliance in<br />
areas such as POPI and the ICT governance framework. Despite<br />
the unfavourable macroeconomic outlook with regards to high<br />
unemployment and slow growth, TETA will continue, through<br />
training initiatives, to ensure that the country has a pool of workready<br />
artisans and graduates and encourage self-employment<br />
through entrepreneurship development.<br />
Strategies to keep delivering<br />
Technology will be harnessed in the sector to enhance delivery<br />
methods, communication with stakeholders and regulatory reporting.<br />
Online access will be enabled for application submission, learner<br />
registration and reporting. TETA will harness reporting processes<br />
and systems for seamless alignment and regulatory reporting to the<br />
DHET SETA Management Information System (SETMIS).<br />
50 | www.opportunityonline.co.za<br />
Credit: South African Heavy Haul Association
TRANSPORT SKILLS TRAINING<br />
TETA regularly holds career days, on this<br />
occasion in an airport hangar.<br />
Mobile technology will be used to facilitate timely communication<br />
with stakeholders and beneficiaries in rural and less accessible parts<br />
of the country.<br />
TETA will sustain advocacy programmes for a clean environment<br />
through monitoring research and funding studies in this area.<br />
HIV/Aids and Covid-19 are impacting the health of the South<br />
African labour industry, with the transport sector being one of the<br />
most negatively affected industries, resulting in costly inefficiencies.<br />
TETA will continue to support the development and implementation<br />
of innovative awareness and prevention strategies to arrest the spread<br />
of infections in the transport sector.<br />
The government promotes the formation of SMMEs as vehicles<br />
of growth to address poverty, unemployment and inequality as<br />
stipulated in the National Development Plan (NDP). Hence in 2014<br />
the Department for Small Business Development was formed. The<br />
establishment of this department in support of the establishment of<br />
small businesses will affect existing players in the subsectors of the<br />
transport industry.<br />
The transport sector mostly consists of 70% small to medium-sized<br />
companies. It is thus imperative that the Transport SETA leverages on<br />
SMMEs in order to increase the sector’s chance of attaining the NDP’s<br />
employment targets by 2030. In capital-intensive subsectors such<br />
as maritime, freight handling, and forwarding and clearing, it is very<br />
difficult for small businesses to enter the market. Therefore, there is<br />
very little competition from SMMEs.<br />
The transport sector accounts for 26% of global carbon emissions,<br />
this number is continually increasing. With greater concern over<br />
climate change, as expressed through many international conferences<br />
(for example, the Kyoto Protocol and the Paris Agreement) in the<br />
past two decades, the transport sector will have to adapt to new<br />
government legislative frameworks and policies which will likely lead<br />
to technological and behavioural changes. Therefore, in the long run,<br />
attempts to change individual attitudes and behaviours will affect<br />
choices made within the sector and consequently the skills required<br />
to sustain it.<br />
The Fourth Industrial Revolution (4IR)<br />
The Fourth Industrial Revolution is characterised by<br />
a fusion of the digital and physical worlds; and the<br />
use of new technologies such as artificial intelligence<br />
(AI), robotics, 3D printing and the Internet of Things<br />
(IoT). This new technology has changed the way<br />
companies operate and do business. South Africa’s<br />
industries, transport included, are affected by the<br />
4IR as it brings economic disruptions with uncertain<br />
socio-economic consequences. It is therefore<br />
important for companies in the different industries<br />
to prepare for this era, ensuring sustainability, growth<br />
and relevance.<br />
The 4IR is introducing rapid changes into the<br />
labour market and production systems requiring<br />
those seeking employment to cultivate the skills and<br />
occupations necessary for adapting to the needs in<br />
the transport sector.<br />
The 4IR has changed things for the workforce;<br />
to remain competitive they need to consistently<br />
build capacity by adding new skills and technical<br />
knowledge. As a result, upskilling is required for<br />
employees in the sector to expand their capabilities.<br />
ABOUT TETA<br />
The Transport Education Training Authority (TETA)<br />
is one of the 21 SETAs mandated to facilitate skills<br />
development and training in different economic<br />
sectors of South Africa. TETA’s areas of operation cut<br />
across rail, aerospace, maritime, road freight, road<br />
passenger, taxi, freight handling and forwarding<br />
and clearing subsectors. The authority is committed<br />
to ensuring that through the implementation of the<br />
National Skills Development Plan a pool of highly<br />
skilled, competitive and competent individuals<br />
is developed and functions effectively within the<br />
transport sector.<br />
TETA is a public entity that reports to the<br />
Minister of Higher Education and Training and<br />
operates under the oversight of National Treasury<br />
in terms of performance management and financial<br />
administration.<br />
The primary functions of TETA are:<br />
• To develop a sector skills plan (SSP)<br />
• To facilitate the development, registration and<br />
implementation of learnerships, skills programmes<br />
and strategic initiatives<br />
• To approve workplace skills plans (WSPs)<br />
• To disburse grants to stakeholders<br />
• To conduct quality assurance on education and<br />
training that falls within the scope of the sector.<br />
Website: www.teta.org.za<br />
www.opportunityonline.co.za | 51
WORLD-CLASS TRANSPORT<br />
Bombela Operating Company<br />
Bombela Operating Company is the operator and maintainer of the Gautrain systems.<br />
As a transport operator we are experts not only within the<br />
rail environment, but we also operate buses, midibuses<br />
and stations efficiently, with our key performing<br />
indicators rating over 90%.<br />
Every day we innovate for more sustainable and smarter cities<br />
by designing, operating and maintaining long-distance and<br />
short-distance transport networks that serve the wellbeing of our<br />
travellers. We do this with passion and determination. We are a<br />
proudly South African company, in a joint venture led by RATP Dev,<br />
a global transport group which operates and maintains urban and<br />
intercity transportation systems around the globe.<br />
A benchmark<br />
Gautrain’s achievements to date include:<br />
• 98% service availability and on-time performance.<br />
• Over 192-million passenger trips since inception, 1.3-million<br />
of which were connecting travellers to OR Tambo International<br />
Airport.<br />
• 24 200 fewer cars, contributing to reduced emissions and access<br />
to efficient public transport.<br />
• An estimated R1.7-billion contribution to economy year-on-year.<br />
• A R46-billion total contribution to GDP. 245 000 jobs added<br />
through property development.<br />
Our vision<br />
To be the preferred operator and maintainer of the Gautrain<br />
systems now and beyond with world-class customer satisfaction<br />
and safety performance.<br />
Our mission<br />
• Moving our customers daily by means of trains, buses and<br />
midibuses in a safe and environmentally responsible manner.<br />
• Consistently meeting and exceeding our contractual obligations.<br />
• Positively impacting communities around our operations.<br />
Engagement<br />
Bombela Operating Company continuously engages (through<br />
forums like Africa Rail) on industry topics such as: improving<br />
networks, handling challenges and requirements in a healthy<br />
and robust integrated multimodal system; relying on data to<br />
offer a seamless passenger experience, actionable data for railway<br />
operators; the idea of introducing high-speed rail to Africa, a<br />
promise to connect the continent’s major cities while providing<br />
fast, safe and affordable transport.<br />
www.bombelaop.com<br />
52 | www.opportunityonline.co.za
WORLD-CLASS TRANSPORT<br />
A leader who believes in partnering for progress<br />
Nthabiseng Kubheka is the CEO of Bombela Operating<br />
Company (BOC) and Country Director at RATP Dev.<br />
She is a sought-after and well-respected engineer<br />
with a proven track record of managing world-class<br />
energy projects, business management and improving<br />
team performance. With extensive experience in a<br />
variety of industry roles, Nthabiseng is experienced and<br />
knowledgeable. She has a strong background in the energy<br />
sector and is currently at the helm of Africa's most efficient<br />
rapid-rail operator and maintainer, Bombela Operating<br />
Company. Her niche is in leading multidisciplinary teams<br />
in the services and construction operations and she is<br />
known to be a ground breaker. She sees her leadership<br />
role in a broader context: “I am a patriotic South African<br />
who wants to see us progress into a super economy in<br />
Africa and beyond. This is our country, we need to build it<br />
ourselves, no-one will do that for us.”<br />
Integrity, inclusion and diversity are at the centre of<br />
her leadership style. She has achieved success through<br />
her high standards of corporate governance, being results<br />
driven, people development and high performance. The<br />
partnership that BOC has with RATP Dev has been a gamechanger,<br />
according to Nthabiseng: “Today we look back<br />
with pride at how we have leveraged our parent company<br />
RATP Dev, the third-largest<br />
integrated transport<br />
leader globally and<br />
world leader in highcapacity<br />
rail networks.”<br />
She is full of praise<br />
for the partners and<br />
employees of BOC<br />
who continue to<br />
deliver a worldclass<br />
service.
UBUMBANO OPERATING COMPANY<br />
Building a legacy<br />
In South Africa, where hope battles against adversity, a beacon of unity emerges.<br />
Chief Executive Officer: Sipho Sikhosana<br />
Sipho Sikhosana, a seasoned industrial engineer, is the Chief Executive Officer at uBumbano Opco.<br />
With over 15 years’ experience in rail, Sipho envisions a future where the mobility experience is safer,<br />
and technologically advanced. Beyond his corporate endeavours, Sipho actively contributes to various<br />
boards and he is currently pursuing an MBA at Henley Business School.<br />
Born out of the opportunity to manufacture world class<br />
components for the mobility sector, uBumbano Opco<br />
was founded in 2015, initially as an investment holding<br />
company with a bias for manufacturing entities. In 2022<br />
the company took a strategic decision to be a manufacturer of<br />
electrical harnesses, and secured its first contract with Gibela Rail.<br />
With its 4,800sm facility which boasts state of the art low and<br />
high voltage equipment, the company has set its sights on the<br />
automotive sector working with NAAMSA and NACAAM.<br />
As a black-owned company, uBumbano is made up of<br />
entrepreneurs from different spheres of commerce, transforming<br />
economic and industrialisation dreams into reality. Our<br />
shareholders, many of whom have started companies themselves,<br />
have a wealth of knowledge and expertise. Paving the way for<br />
black entrepreneurs to thrive, it aims to leave an indelible legacy<br />
in South Africa’s manufacturing sector.<br />
Diverse markets<br />
In the following years, uBumbano will strategically expand<br />
its presence in diverse markets in mobility. In order to<br />
achieve this, the company is engineering a comprehensive<br />
localisation strategy tailored to the defence, mining, marine<br />
and automotive sectors.<br />
This strategy involves customising our products and services to<br />
meet the specific needs of each sector while leveraging local<br />
resources and expertise. By focusing on these key industries and<br />
adopting a targeted localisation approach, uBumbano aims to<br />
establish a strong foothold in different markets to drive growth<br />
and innovation in different spheres of transport.<br />
Our products and services<br />
• uBumbano Opco is a leading component manufacturing<br />
company in the mobility sector, offering a diverse range of<br />
products and services tailored to meet the evolving needs of<br />
the industry.<br />
• Specialising in precision engineering, uBumbano excels in<br />
producing high-quality components for various applications<br />
in transportation. From intricate parts for defence vehicles to<br />
robust components for mining machinery.<br />
uBumbano’s offerings are designed to enhance the performance,<br />
efficiency and safety of mobility systems. With a strong focus on<br />
innovation and quality, uBumbano’s products play a vital role<br />
in driving the advancement of mobility and shaping the future<br />
of transportation.<br />
uBumbano in numbers<br />
• 4 780m² manufacturing facility in Pomona<br />
• Majority women ownership; 100% black owned<br />
• 60% women employees<br />
• Upcoming project to create +180 new jobs over two years<br />
Our facility<br />
Our offices are headquartered and operate out of a newly<br />
renovated 4 780sqm facility in Pomona in the east of Johannesburg,<br />
the economic and manufacturing hub of South Africa. We are<br />
building capacity and have space to run numerous production<br />
lines. The nearby OR Tambo International Airport is connected to<br />
major global destinations serving as a major hub in South Africa<br />
for both passenger and cargo transportation.<br />
Our values drive everything we do<br />
• Patriotism is at the core of our company, driving the team to<br />
prioritise national interests while striving to make a positive<br />
impact on society.<br />
• Teamwork is the foundation of our decision-making process.<br />
• Technological innovation is in our DNA.<br />
• We uphold ethical standards and<br />
• Foster a strong sense of unity, putting the client first in all our<br />
engagements.<br />
• We have a strong bias towards localisation, supporting the local<br />
supply chain wherever possible.<br />
Contact Us<br />
64 Maple Road, Pomona, Kempton Park, Gauteng | Telephone: +27 010 025 0971<br />
54 | www.opportunityonline.co.za
INTERVIEW<br />
Transforming<br />
manufacturing<br />
Sipho Sikhosana, the Chief Executive Officer at uBumbano Opco, outlines the tough and exciting<br />
journey taken by a startup company to becoming a leader in industrial components.<br />
What is the scope of uBumbano’s work?<br />
uBumbano Operating Company (uBumbano Opco) is a harness<br />
manufacturing company set to drive innovation in a number<br />
of sectors like rail, automotive, marine, defence and mining.<br />
uBumbano has set the bar high for itself, to transform the industrial<br />
component manufacturing space.<br />
What are you most proud of, in terms of projects completed?<br />
We are proud of the contract we were awarded by Gibela as a direct<br />
supplier in the Gibela project, for the supply of electrical harnesses,<br />
which are essential components to the electrical systems of trains.<br />
This saw the company move into a newly renovated 4 780m2<br />
facility in Pomona, in the east of Johannesburg, creating over 30<br />
new jobs in the first year.<br />
What have been the most difficult challenges<br />
along the way since 2015?<br />
Starting a new venture comes with its own set of challenges<br />
and over time we have learnt that these challenges need<br />
strategic planning, innovative thinking and perseverance to<br />
overcome and succeed in the competitive startup landscape.<br />
Market competition: ensuring that we stand out in a market<br />
full of big, established players can be a significant challenge<br />
for startups while building a strong team who are passionate<br />
about the mission. Recruiting and retaining talented employees<br />
while scaling up: managing rapid growth while maintaining<br />
quality and customer satisfaction. We have had to be agile and<br />
adaptable to pivot our strategies based on market trends and<br />
customer feedback.<br />
Please describe your relationship with<br />
Alstom within the Gibela consortium?<br />
Our relationship with Alstom is based on collaboration and<br />
mutual dependency. uBumbano benefits from access to Alstom’s<br />
technology and expertise, while Alstom gains local insights and<br />
labour from the local partnership. This partnership allows both<br />
companies to leverage their strengths and contribute to the<br />
successful operation of the Gibela consortium.<br />
To what extent is South Africa in a<br />
position to introduce this now?<br />
South Africa has the potential to introduce smarter mobility<br />
initiatives, although there are some challenges to address. There<br />
are a few initiatives that are doable is the short term such as:<br />
• implementing smart-traffic management systems to reduce<br />
congestion and improve urban traffic flow<br />
• promoting the use of shared mobility services such as ridesharing<br />
and bike-sharing<br />
• investing in infrastructure for electric vehicles and promoting<br />
their adoption to reduce emissions and promote sustainable<br />
transportation<br />
What are your views on Transnet and private partnerships?<br />
Transnet’s focus on partnerships with the private sector is a<br />
positive step towards enhancing efficiency, innovation and<br />
sustainability in its operations. Collaborating with private sector<br />
entities brings in expertise, technology and investment that<br />
can help improve service delivery and drive growth. In terms<br />
of boldness versus caution, SOEs like Transnet need to strike a<br />
balance between being bold in exploring new opportunities<br />
and partnerships while also being cautious in assessing risks<br />
and ensuring that partnerships are in the best interests of the<br />
organisation and the public. Boldness leads to innovation and<br />
growth, but caution is necessary to mitigate risks and safeguard<br />
the public interest.<br />
Does uBumbano do training?<br />
uBumbano invests in training, from specialist training courses<br />
to industry events like Africa Rail to the Smarter Mobility Africa<br />
conference and we provide internship programmes.<br />
How do you understand the concept of “smarter mobility”?<br />
Smarter mobility is the use of technology and innovation to<br />
improve transportation and to enhance efficiency, sustainability,<br />
safety and convenience in transportation.<br />
www.opportunityonline.co.za | 55
RAILWAYS<br />
SADC rail leaders<br />
commit to supporting<br />
sustainable growth<br />
Southern African Railways Association (SARA) announces new leadership at annual board meeting.<br />
The Southern African Railways Association (SARA) Board<br />
Members convened in Cape Town in June 2024 for the<br />
annual SARA Board meeting. The event was marked<br />
by significant discussions, strategic planning and the<br />
transition of leadership within the association.<br />
In terms of leadership, the SARA Board has elected the Passenger<br />
Rail Agency of South Africa (PRASA) Group CEO Hishaam Emeran<br />
as the new President. Emeran served SARA for the previous year as<br />
Vice President. The newly elected Vice President is Nixon Dlamini,<br />
the Chief Executive Officer of Eswatini Railways.<br />
Outgoing SARA President, Agostinho Francisco Langa Junior,<br />
the President of the Board of Directors for CFM (Mozambique<br />
Ports and Railways), highlighted in his outgoing speech the<br />
collaborative spirit that defines SARA. He noted the synergies<br />
within the membership of the association that help SARA<br />
follow through on the organisation’s planned mandate. A key<br />
achievement during his tenure was the approval of the strategic<br />
plan 2023-2027, aimed at facilitating the SADC Regional Railway<br />
Development Agenda through sustainable practices and proven<br />
global railway best practices.<br />
Expressing gratitude to his colleagues, Agostinho Francisco<br />
Langa Junior acknowledged the effective communication and<br />
collaboration facilitated by the SARA Executive Director, Babe<br />
Botana. He also praised Botana for his dedication to the tasks<br />
assigned to him. As he passed the “baton” to the newly elected<br />
president, Agostinho Francisco Langa Junior extended his best<br />
wishes to Hishaam Emeran, urging him to prioritise SARA and<br />
assuring him of continued support from CFM.<br />
The newly elected Vice President of SARA, Nixon Dlamini, the<br />
Chief Executive Officer of Eswatini Railways.<br />
The outgoing President of SARA, Agostinho Francisco Langa<br />
Junior, President of the Board of Directors for CFM.<br />
Promoting trade and growth<br />
In his acceptance speech, the newly elected President, Hishaam<br />
Emeran, emphasised the central role of SARA in promoting regional<br />
trade and sustainable economic growth. He acknowledged the<br />
revival of rail transport in the SADC region driven by member<br />
organisations and expressed confidence in the strength and<br />
experience of the region’s rail leaders. Emeran highlighted the<br />
challenges faced by the railway transport sector, including<br />
inadequate and poorly maintained infrastructure and stressed the<br />
importance of continued investment in development, upgrades<br />
and maintenance.<br />
56 | www.opportunityonline.co.za
RAILWAYS<br />
Emeran also shared successes achieved by SARA members such as<br />
the delivery of new electric locomotives and passenger coaches in<br />
Tanzania, financial commitments for the Lobito Corridor and plans<br />
for the Trans-Kalahari railway project. He noted the achievements<br />
in South Africa, where the PRASA-initiated Gibela Rail Consortium<br />
has been manufacturing world-class passenger trains and<br />
refurbishing existing fleets.<br />
Emeran concluded by expressing his commitment to visiting<br />
member countries, collaborating to solve shared challenges and<br />
supporting the sustainable growth of the region’s rail sector. He<br />
looks forward to serving as President of SARA and partnering<br />
with all members to chart a prosperous path for the sector in the<br />
coming months and years. Nixon Dlamini, the newly elected Vice<br />
President of SARA, expressed his humility and appreciation for the<br />
opportunity to serve. He emphasised the importance of driving<br />
the strategy to increase market share for railways and outlined key<br />
enablers necessary to meet customer needs and increase rail share.<br />
Dlamini highlighted the need for investments, enabling legislation,<br />
governance frameworks and inter-rail business agreements. He<br />
stressed the importance of capacity, including rolling stock,<br />
infrastructure, people and technology. Dlamini stated that the<br />
railways’ offering in the region must be seamless, sustainable,<br />
reliable, consistent and efficient to ensure a positive customer<br />
experience. He concluded by expressing his commitment to<br />
serving and supporting the association, reiterating the SARA<br />
philosophy of “We are better together.”<br />
The Southern African Railways Association (SARA) is<br />
the mandated rail transport body for the Southern African<br />
Development Community (SADC). SARA plays a significant role in<br />
advancing railway development across the continent through its<br />
railway operator members.<br />
The Southern African Railways Association (SARA) Executive<br />
Director, Babe Botana, seated right, next to SARA’s newly elected<br />
President Hishaam Emeran.<br />
www.opportunityonline.co.za | 57
SUPPLY CHAIN INNOVATION<br />
The Checkers Sixty60<br />
delivery service was<br />
dreamed up by a team<br />
working on innovative<br />
solutions within the<br />
Shoprite Group.<br />
Is venture building the<br />
secret sauce for creating<br />
new companies?<br />
Companies are specialising in “venture building”, offering their services to corporates<br />
to assist them in leveraging their assets to create innovative small businesses along<br />
their supply chain. Venture builders are offering more than incubators and accelerators.<br />
One such venture builder, Specno, gives local and international examples of where this<br />
is working and says it’s bringing a startup approach to corporate innovation.<br />
It’s no secret that innovation can unlock potential for<br />
corporations. A Boston Consulting Group (BCG) report states<br />
that 83% of African executives now view innovation as a topthree<br />
priority, compared to 79% of companies around the<br />
world. This represents a 21% increase from the previous year when<br />
only 62% of African companies ranked innovation as a top priority.<br />
Despite the absence of African firms in the top 50 most innovative<br />
companies in 2023, their readiness for innovation is on par with<br />
their global counterparts.<br />
But innovation is often complex and expensive and with<br />
strain on budgets it’s hard to imagine how more money can be<br />
spent on this. This where corporates can take a leaf out of the<br />
startup founders book – lean, agile, rapid prototyping, validation<br />
experiments, customer interviews and growth hacking are some<br />
of the terms you will hear in corridors wherever startup founders<br />
find themselves.<br />
Those that succeed with startups often do so with intense<br />
constraints, particularly when it comes to deployable capital,<br />
available time and staff. These startup founders master the art of<br />
doing a lot with little, reducing time to take products live and at<br />
reduced costs, reducing the overall risk of bringing their digital<br />
products to life.<br />
What these corporates have is a loyal customer base and a<br />
footprint that can empower innovations and capital to throw at it.<br />
The missing ingredient? Venture know-how. And this is where<br />
venture building comes into play.<br />
58 | www.opportunityonline.co.za<br />
PHOTO: Shoprite X
SUPPLY CHAIN INNOVATION<br />
And this innovative approach to building companies<br />
is now coming to the corporate environment. PepsiCo<br />
Labs has backed and/or built ventures along its entire<br />
supply chain and has pioneered more than 100<br />
ventures. And a key ingredient is to spin out a division<br />
that focusses specifically on venture development,<br />
allowing for a different culture, a different approach<br />
and less corporate red tape.<br />
In South Africa, Old Mutual has set up a structure<br />
for this called Next176 with the vision to create<br />
disruptive and innovative new businesses to positively<br />
impact one-billion lives. Similarly, ShopriteX is the<br />
innovation team driving pace-setting innovations<br />
like Checkers Sixty60.<br />
Large retail operations have endless opportunities to set up and<br />
support smaller enterprises along their very long supply chains.<br />
Wide range of skills needed<br />
But building a host of ventures at the same time<br />
requires startup know-how and a whole range of<br />
skills. While most of these skills can be hired, in<br />
different stages of ventures one requires different<br />
About Specno<br />
measures of these resources. As such a new type<br />
Specno is a leading software and design agency known for its<br />
of agency has evolved that offers venture services<br />
innovative approach to building successful tech ventures. With an<br />
to large corporates. Venture services are the action<br />
ambition to be the global leader in venture building, Specno has<br />
of supplying corporate venture-building teams with<br />
proven its competence by ranking as the number one agency<br />
teams or individuals that can execute specific validation<br />
in South Africa and the 30th globally on Clutch.co. Specno is<br />
experiments to bring to life the potential of the venture<br />
committed to achieving its mission of helping one-million<br />
for further development or gain enough insights to<br />
entrepreneurs build a tech-enabled business by 2030.<br />
reject it as a venture that will likely fail, all while spending<br />
substantially less money than would have been spent on<br />
a full software build and launch.<br />
“It’s about augmenting the venture building teams of the<br />
corporates to give them access to a diverse team that lives<br />
and breathes startup and venture building techniques,” says<br />
Renier Kriel, head of Corporate Venture Services at Specno.<br />
“Specno is not your traditional consultancy,” says co-founder<br />
and CEO Daniel Novitzkas. “We’re bringing a startup approach<br />
to corporate innovation, leveraging our extensive experience<br />
working with entrepreneurial ventures. We’re not here to tell<br />
corporates what they want to hear; we’re here to push boundaries<br />
and deliver real value. And we do that by accelerating execution<br />
and leveraging know-how learned from our engagement with<br />
hundreds of startups. We’re shifting our focus to include corporates<br />
because we believe in the value we create when building startups<br />
through corporate venture building. Corporates have the<br />
resources; they just need the right partner to help unlock their<br />
innovative potential.”<br />
Where the corporate climate is influenced by constant<br />
technological change and economic imbalance, companies<br />
cannot afford to stand still.<br />
The next frontier of corporate growth lies in harnessing<br />
innovation and fully utilising existing assets, especially its customer<br />
base using best-in-class startup methods. The future belongs to<br />
those corporations that can transform their loyal customers into<br />
Specno co-founder and CEO, Daniel Novitzkas<br />
engines of growth through innovation.<br />
PHOTO: Dennis Siqueira on Unsplash www.opportunityonline.co.za | 59
PROPERTY TRENDS<br />
From estates<br />
to precincts:<br />
a property<br />
evolution<br />
Estate living is growing in popularity in South<br />
Africa at the same time as the concept is<br />
evolving to include a broader range of properties<br />
and services. These larger areas, precincts<br />
encompassing residential, educational, retail<br />
and commercial users, are being developed in<br />
all parts of the country, writes John Young.<br />
South African estates are offering more affordable<br />
properties, greener surroundings and a broader range of<br />
services and amenities. The idea of living on an estate is<br />
also appealing to a broader range of South Africans, but<br />
estates themselves are changing.<br />
A Pam Golding Properties analyst told Property24 in<br />
2023 that 16.4% of all residential sales in South Africa in the<br />
previous year were for properties in estates. The figure for<br />
2010 was 13.1%.<br />
Property research company Lightstone has put the number<br />
of estates in South Africa at 5 000, encompassing about 440<br />
000 properties. This is only 7% of the country’s property<br />
portfolio but represents about 17% of the total market value<br />
of residential property.<br />
The Covid-19 epidemic is part of the reason for the uptick in<br />
numbers and the rise in remote working is a related factor but<br />
there are other considerations: the attractions of a coastal lifestyle<br />
compared to inland living and increasing demands for security<br />
among them.<br />
The Developer of Serenity Hills on the KZN South Coast, Reece<br />
Daniel, has outlined five key of security which should be present on<br />
a modern estate: biometric access, camera surveillance, electrified<br />
perimeter fencing and community engagement.<br />
On the last issue, Daniel says, “A gated estate should not cut<br />
the residents off from the surrounding community. Fostering<br />
good relations with everyone in the area builds better long-term<br />
security. Estates that support local communities with job creation<br />
are also contributing to the local economy while diminishing the<br />
threat of criminal activities.”<br />
Three other shifts are noteworthy:<br />
• the importance of wildlife and nature in new estates<br />
• the broader scope of affordable options available<br />
• the widening of the concept of estate living to include “precincts”<br />
Natural attractions<br />
New World Wealth’s analysis of trends in estates in 2021 noted a<br />
“general movement away from traditional golf estates and towards<br />
wildlife and parkland estates” and stated that clustering of housing<br />
was becoming commonplace in order to allow for more open<br />
space on the estate as a whole.<br />
Something else noted by this survey was that the percentage<br />
of millionaires living in (or having a second home on) estates was<br />
on the rise, up from 30% in 2010 to 48% at the time of the survey,<br />
June 2021.<br />
Adrian Gardiner, founder of the Mantis Collection, says of the<br />
St Francis Links estate, inside of which his company has recently<br />
developed the St Francis Links Villas, “The birdlife and the wildlife<br />
make St Francis unique.”<br />
The first page of the website of KwaZulu-Natal’s Zimbali Estate<br />
references a “natural and contemporary coastal forest estate”, “ecofriendly”,<br />
“caring for the environment” and “our wildlife, our birdlife<br />
and our incredible flora”.<br />
60 | www.opportunityonline.co.za<br />
PHOTOS: St Francis Links Villas
PROPERTY TRENDS<br />
The St Francis Links Villas development is within<br />
the larger golf and residential estate.<br />
The retail node at the Riverfields Precinct.<br />
Affordable options<br />
Lightstone regularly releases graphs showing<br />
trends in the property market. The average price for<br />
an estate property in 2003 was close to R3-million.<br />
That figure averaged just less than R2-million in<br />
the four years to 2022. The St Francis Links Villas<br />
in the Eastern Cape is a typical new development<br />
in that it includes free-standing houses but also<br />
one-bedroom and two-bedroom apartments.<br />
Newer estates are also allowing for smaller plots<br />
and greater mix of more affordable houses to be<br />
built. This might be within a particular section or<br />
“suburb” of the estate, as with the St Francis Links<br />
Villas option, which is a development within the<br />
estate. Residents of the Villas have some of their own<br />
amenities (like healthcare) but they also have access<br />
to the clubhouse and gym of the main estate.<br />
From an estate to a precinct<br />
A new trend in estate living is the move to precincts. Essentially<br />
this is the extension of the concept of a secure estate to<br />
encompass more elements: residential, commercial, educational,<br />
medical and recreational.<br />
In short,<br />
a town within a city with the residential<br />
estate occurring within the precinct. This is an extension of the<br />
idea of having a hotel or lodge within the estate, as is the case<br />
at Zimbali. The idea of a precinct goes beyond holidaying and<br />
recreation to encompass work and play. Gideon van der Vyver,<br />
the developer of the Riverfields Precinct in Gauteng, says that<br />
the focus is on safety, sustainability and community.<br />
PHOTO: Riverfields Precinct<br />
www.opportunityonline.co.za | 61
PROPERTY TRENDS<br />
Good security is a feature of<br />
both estates and precincts.<br />
Careful landscaping ensures that the natural<br />
element is highlighted at Serenity Hills.<br />
Calling the new entities “managed<br />
precincts”, Van der Vyver points to the success of the Umhlanga<br />
Urban Improvement Precinct (UUIP) which was established in<br />
2015. He credits the UUIP with reducing crime, improving street<br />
cleanliness and creating a more welcoming environment. Other<br />
examples he cites from around South Africa are Waterfall City<br />
(between Johannesburg and Pretoria), Melrose Arch and Steyn<br />
City in Johannesburg, the V&A Waterfront and Century City in<br />
Cape Town and Menlyn Maine in Pretoria.<br />
Riverfields, which is near the OR Tambo International Airport,<br />
has so far delivered more than 1 000 residential units, a retail node<br />
is functioning and a number of logistics and distribution centres<br />
have been created in the light industrial zone.<br />
While the KwaZulu-Natal North<br />
Coast has long been a site for<br />
golf and residential estates,<br />
many destinations south of<br />
Durban are proving attractive<br />
options for people choosing<br />
estate living. One of the most<br />
ambitious of these is the 1 300-<br />
acre Renishaw Coastal Precinct<br />
on the Mid-South Coast near<br />
Scottburgh. The development<br />
is backed by Renishaw Property<br />
Developments, a subsidiary of<br />
the JSE-listed Crookes Brothers<br />
Limited, and its property partner,<br />
Crocker Properties.<br />
Renishaw Hills, a retirement<br />
estate, has been in place for some<br />
time and five phases have been<br />
sold out. Every property has been<br />
positioned to maximise the views<br />
of the surrounding coastal forest and Indian Ocean. The precinct<br />
will eventually comprise zones for residential, retail, educational<br />
and healthcare. In keeping with the latest trend, the developers<br />
will build on just 20% of the land, creating a conservation area of<br />
real substance.<br />
Van der Vyver sums up the positive impact a managed<br />
precinct can have as follows: “They attract businesses, tourism<br />
and investment, which leads to job creation and increased<br />
economic activity. The presence of commercial spaces and retail<br />
outlets also generates revenue for the local government through<br />
taxes and fees.”<br />
62 | www.opportunityonline.co.za<br />
PHOTO: Serenity Hills
Unleash the hidden jewels of Frances Baard District<br />
Renowned as the home of the Diamond Fields, nestled in the north-eastern<br />
corner of the Northern Cape Province, a place of wide-open spaces, where<br />
golden savannahs stretch, a place or arid natural beauty, where resilient green<br />
cactuses and tenacious thorn trees fill the landscape. Five gushing rivers divide<br />
the landscape; the Vaal, Orange, Modder, Harts and Riet which gives life to the<br />
region and its inhabitants.<br />
Adventure<br />
Fly-fishing: The diamond fields is widely known as a premier fly-fishing destination<br />
for yellowfish, the renowned Vaal and Riet rivers runs through the region and hold<br />
vast populations for yellowfish which provides the prefer setting to attract any<br />
discerning fly-fisherman.<br />
Cycling: The extensive network of gravel roads and veld paths in the diamond<br />
fields provide an ideal opportunity for mountain bike enthusiasts to not only get<br />
a great workout, but to get closer to nature at the same time. The region has<br />
become a regular and popular host for mountain bike events.<br />
Eco-Tourism<br />
Game-viewing: The diamond-fields region is renowned for our luxurious gamereserves<br />
which offer visitors a world-class experience with spectacular views and<br />
guaranteed sightings of the African sunset. Visitors get to experience unique<br />
and exciting insights into the world of animal activity and discover a wide variety<br />
of fauna and flora species.<br />
History<br />
Anglo-Boer War Route: The diamond fields were at the centre-stage of many<br />
great battles fought during the Anglo-Boer War. Explore this incredible historic<br />
landscape by following the Battlefields Route along the N12.<br />
Canteen Kopje: Overlooking Barkly West is a small, unassuming kopje (hill)<br />
covered in thorn trees and cactus. This is the site where the first alluvial diamond<br />
diggings in South Africa took place in 1869, sparking the diamond rush that<br />
came to define this region.<br />
Culture and Heritage<br />
Wildebeest Kuil Rock Art Centre:<br />
View more than 400 well preserved<br />
San engraving on a sacred hill. The<br />
land is owned by the !Xuan and<br />
Khwe San, who gather annually at<br />
the cultural villages in Platfontein to<br />
celebrate their ancient traditions.<br />
Visitors to the centre are ventured<br />
on a guided walking tour to the<br />
sacred hill to view the ancient<br />
etchings, which include animals,<br />
celestial designs and mystical<br />
human figures.<br />
Galeshewe: A vibrant township on<br />
the outskirts of Kimberley, known for<br />
its friendly atmosphere and bustling<br />
street life. Galeshewe is one of the<br />
oldest townships in the country and<br />
offer visitors a walking route to various important sites that mark the township’s<br />
history, including Mayibuye Memorial, built in memory of the people who died<br />
during the 1952 uprising, and Robert Sobukwe’s law office.<br />
Birding: The diamond fields offer a number of popular locations for bird<br />
viewing such a Kamfers dam, Spitskop dam, Ganspan Wetland Reserve etc. Bird<br />
enthusiasts are able to view a wide variety of bird species throughout the year<br />
making this a region an unquenchable birders paradise.<br />
Frances Baard District Municipality<br />
Tel: 053 838 0911<br />
Fax: 053 861 1538<br />
www.visitdiamondfields.co.za
REIT RISKS<br />
Trusted advisor: the real estate<br />
internal auditor of the future<br />
New risks, technologies, policy and governance issues mean that the traditional roles played by<br />
the real estate internal audit function, specifically with respect to real estate investment trusts,<br />
are no longer adequate. BDO Risk Advisory Services Director, Farhana Hassim, discusses how<br />
the internal audit function needs to shift from a more tradition financial assurer into an agile,<br />
trusted advisor with specialists addressing digital, ESG and change management needs.<br />
Some of the prevalent risks in the real estate sector of<br />
late have resulted in real estate investment trusts (REITs)<br />
refocusing their resources to remain sustainable, valueadding<br />
businesses in the longer term.<br />
REITs have started to future-proof their businesses by<br />
navigating their own forward-thinking strategic initiatives. As<br />
this shift continues to occur, the role of the internal auditor must<br />
evolve from the traditional as REITs require more specialised skills<br />
from their internal audit teams such as digital, ESG and change<br />
management. While some changes seem further away than others,<br />
it is still important that a REIT’s internal audit function understands<br />
their role in the shift, remains agile, and continually ensures the<br />
necessary skills to be a trusted advisor.<br />
What has led to this shift in real estate and a need for internal<br />
auditors to change their value proposition? For real estate, it was<br />
the pandemic which prompted organisations to change their<br />
approach to managing risks. This has led to a refocus of internal<br />
audit plans to areas that matter.<br />
The below pointers highlight some of the skills a REIT’s internal<br />
audit function needs to possess to add value to its clients:<br />
The foundations of the investment protocols in the<br />
real estate industry are shifting.<br />
Digital transformation and data skills<br />
The adoption of AI technology is rapidly increasing<br />
across all industries, including retail and real estate. In<br />
addition to pure AI technology adoption, businesses<br />
are focused on automation and streamlining<br />
processes to improve operations.<br />
Internal auditors can play a vital role in the<br />
maturity of an organisation’s digital journey over time.<br />
Internal audit teams must have the necessary skills to<br />
be an effective role-player in this space. This means<br />
that as REITs implement more technology alongside<br />
internal audit functions, their plans must consider<br />
pre-implementation and post-implementation<br />
reviews, review management’s intended process<br />
controls (recommending improvements too), embed<br />
data analytics in the internal audit plan and explore<br />
opportunities to optimise data and data analytics.<br />
As digital transformation strategies are<br />
implemented, the internal audit plan can be<br />
consistently aligned to ensure that the digital<br />
maturity of the internal audit also improves.<br />
Farhana Hassim,<br />
BDO Risk Advisory Services Director<br />
PHOTO: bearfotos on Freepik
REIT RISKS<br />
Change management and people solutions<br />
Change management is becoming a key focus area not<br />
only for REITs, but for businesses in general that are future<br />
focused. Internal audit functions will need to have the<br />
necessary skills on board to work with management in real<br />
time to ensure change management is effectively employed<br />
at all stages of strategy execution. It is important to note<br />
that change management no longer only refers to system<br />
changes, but also the changes which affect human resources<br />
strategies across businesses.<br />
In South Africa particularly, we have seen “people” rise as<br />
an emerging risk on many risk registers. This is largely<br />
driven by the implementation of digital transformation<br />
which affects change management, emigration of skilled<br />
workers to other countries and cost-reduction measures<br />
affecting employment. Forward-thinking internal-audit<br />
functions must be able to provide the necessary skills<br />
within the team when it comes to change management<br />
and people solutions.<br />
Non-financial reporting<br />
Internal audits have traditionally focused on assuring<br />
financial Information. But in recent years, boards and<br />
other stakeholders have placed greater emphasis on<br />
the need for internal controls to supply accurate and<br />
sustainable non-financial information. Thus, in cases<br />
where it’s needed, internal auditors should work with<br />
management and ESG specialists for assistance with nonfinancial<br />
reporting assurance, as well as considerations<br />
around management’s maturity and needs when<br />
it comes to ESG. A forward-thinking internal audit<br />
plan must consider management’s risk, strategy and<br />
implementation plans around ESG. The internal audit<br />
function of the future must have the relevant ESG skilled<br />
resources as part of the overall team.<br />
The modern auditor has to be on top of the latest<br />
trends in technology, especially regarding data.<br />
Combined assurance<br />
Internal auditors play a vital role in any organisation’s<br />
combined assurance model as its third line of<br />
defence. The traditional annual three-year audit plan<br />
has become stagnant. Instead, an agile audit plan<br />
that adjusts to the risk profile of an organisation now<br />
provides the best value to clients. When a REIT’s risk<br />
profile changes due to emerging risks or change in<br />
strategic direction, the internal audit plan should be<br />
updated accordingly.<br />
In addition to being an agile third line of defence,<br />
the internal audit function should review the REIT’s<br />
combined assurance plans at least quarterly to<br />
provide comfort to management and the risk<br />
committee. Internal auditors should also understand<br />
the client's risk profile to ensure that areas which are<br />
not necessarily part of the internal audit universe,<br />
such as valuations and tax, are still covered in the<br />
combined assurance plan.<br />
As forward-thinking strategies such as digital<br />
transformation and ESG become more prevalent, we<br />
should also see a change in the combined assurance<br />
providers and even lines of defence in the future.<br />
Key role-players of the future in the REIT space<br />
could be data scientists, actuaries and HR/change<br />
management specialist consultants and advisors, as<br />
an example. The internal audit function must remain<br />
agile and up to date with these changes and have the<br />
necessary skills to navigate these changes to clients’<br />
combined assurance plans.<br />
In conclusion, the real estate internal auditor of<br />
the present and future needs to constantly adapt<br />
to changing REIT risk profiles if they are to continue<br />
adding value to any business. The real estate internal<br />
audit function of the present and future needs to have<br />
the necessary skills to transcend from a traditional<br />
role into a trusted advisor to management, boards<br />
and stakeholders.<br />
PHOTO: Anete Lusina on Pexels<br />
www.opportunityonline.co.za | 65
INDUSTRIAL MANUFACTURING<br />
Bell Heavy Industries<br />
is launched<br />
In October 2023, Bell Equipment announced the launch of a new<br />
division, Bell Heavy Industries. Famous for its internationally<br />
recognised Articulated Dump Trucks (ADTs) and with manufacturing<br />
facilities in Germany and KwaZulu-Natal, Bell Equipment supplies<br />
machinery in a wide range of sectors and has an ancillary range of<br />
equipment which includes Excavators, Backhoe Loaders, Wheeled<br />
Loaders, Telescopic Handlers, Skid Steer Loaders and Graders.<br />
With almost 70 years of demonstrated expertise<br />
in complex engineering, heavy fabrication and<br />
machining for its own range of material-handling<br />
equipment, Bell Equipment is now offering these<br />
specialist services to all industries in the country through its newly<br />
formed division, Bell Heavy Industries (BHI).<br />
Bell Equipment’s Group Business Development Director,<br />
Stephen Jones, emphasises the current scarcity of companies<br />
providing these vital services locally. “South Africa has seen a huge<br />
reduction in engineering companies and in response, we have<br />
strategically positioned our South African manufacturing facility<br />
to fill this void by providing project engineering and contract<br />
manufacturing through BHI.<br />
“The growth of Bell as a well-established mining, earthmoving<br />
and agriculture equipment manufacturer, both domestically and<br />
in terms of exports around the world, is a testament to the skills<br />
available and the quality of products that we make in Richards<br />
Bay. We’re confident in our ability to expand into other industries<br />
and believe this will benefit not only the manufacturing sector but<br />
the whole country.”<br />
Bell has also received accolades for its demonstrated<br />
performance from organisations such as the South African Capital<br />
Equipment Export Council (SACEEC), the Mining Equipment<br />
Manufacturers of South Africa (MEMSA) and the Department of<br />
Trade, Industry and Competition, which hosts the South African<br />
Premier Business Awards together with Proudly South African and<br />
Brand South Africa.<br />
The 45 000m² undercover manufacturing area in Richards Bay<br />
complies with the ISO9001:2015 Quality Management System<br />
and welds to the internationally recognised ISO 834-2 Appendix<br />
10 standards. It is well equipped with specialist machines<br />
including both horizontal and vertical CNC (computerised<br />
numerical control) machining centres, five-axis boring machines,<br />
laser cutters, high-definition oxyfuel and plasma cutters, bending<br />
66 | www.opportunityonline.co.za
INDUSTRIAL MANUFACTURING<br />
Onsite calibration<br />
facilities, equipment<br />
to perform material<br />
checks, and several<br />
highly specialised<br />
co-ordinate measuring<br />
machines ensure<br />
consistent quality.<br />
Bell Heavy Industries is capable of<br />
oxyfuel cutting up to 75mm material<br />
thickness, plasma cutting up to 32mm,<br />
and laser cutting to 12mm of a variety<br />
of metal sheets.<br />
Bell Equipment has a 45 000m² undercover<br />
manufacturing area in Richards Bay<br />
brakes and advanced welding technology. A blasting plant,<br />
phosphating tanks, sealed spray booth, galvanising bath and an<br />
automated powder-coating installation are available to take care<br />
of surface treatments.<br />
Richards Bay plant<br />
The Bell team in Richards Bay of over 800 machinists, welders<br />
and assemblers is among the best in the country thanks to the<br />
company’s own training centre, which plays a crucial role in<br />
internally developing world-class skills from the surrounding<br />
community. “This is complemented by our highly skilled team<br />
of welding, quality and industrial engineers, along with onsite<br />
calibration facilities, equipment to perform material checks and<br />
a number of highly specialised coordinate measuring machines.<br />
“Together with our strong focus on process development,<br />
BHI can guarantee consistent quality to customers. BHI can<br />
also tap into a wealth of group resources, notably a team<br />
of over 100 South African design engineers, enhancing its<br />
suitability for local manufacturing across diverse industries,”<br />
adds Jones.<br />
Bell Equipment’s manufacturing operation, which is 55%<br />
black-owned and 24% black women-owned, contributes to<br />
B-BBEE scores and creates localisation opportunities for potential<br />
customers. Says Jones, “Over the years we have established a<br />
global supply chain with access to world-class suppliers.<br />
Procurement staff are well skilled in international logistics<br />
and our strategic sourcing department has strong commodity<br />
expertise, which ensures stringent input cost control.<br />
“We have always maintained that manufacturing has<br />
massive transformation potential for the South African<br />
economy and employment, so we are optimistic about this<br />
new division and will be actively engaging with those looking<br />
for the expertise we now offer outside of our traditional market<br />
segment,” he concludes.<br />
www.opportunityonline.co.za | 67
AI IN MINING<br />
Adapting AI-powered<br />
technology for local relevance<br />
is the key to unlocking<br />
its potential in mining<br />
By Shaun Vorster, Partner, and Dinesh Gurlal: Director–Data & Analytics at Forvis Mazars in South Africa.<br />
One of the hot topics during the 2024 Investing in African<br />
Mining Indaba in Cape Town was undoubtedly how to<br />
advance on effective application of AI technology in<br />
the mining sector.<br />
The United Nations Economic Commission estimates that AI<br />
could contribute $1.5-trillion to Africa’s GDP by 2030, and with<br />
mining a core industry for most countries in Sub-Saharan Africa,<br />
the sector stands to gain the most from embracing AI-driven<br />
technological advancement.<br />
The consensus is that the Fourth Industrial Revolution (4IR)<br />
is already here and investing in and adopting AI-powered<br />
technologies is no longer a question of if but rather when and at<br />
what pace.<br />
A digital twin of<br />
Exxaro’s Belfast mine<br />
has been created.<br />
Despite its relevance and potential impact, the reality is that the<br />
majority of existing generative AI and machine learning (ML)<br />
solutions are not always adapted to the realities of the mining<br />
sector in Africa and require significant adjustments in the ways<br />
they work, thus calling for a deeper transformation of operations.<br />
Every part of the mining cycle, from exploration to production<br />
and processing to mine closure, can benefit from implementing<br />
AI tools. According to a recent survey conducted by the Minerals<br />
Council South Africa, over 50% of its members are already piloting<br />
various AI-powered tools while another 25% are looking to do so<br />
in the next five years.<br />
There has been a noticeable uptake in the application of<br />
AI-driven technology especially in the exploration or mine<br />
expansion phases. By using technology and aggregating data<br />
from analogue and digital sources, as well as geophysical imagery,<br />
mining companies can better understand mineral deposits,<br />
improve accuracy and ultimately make better decisions when it<br />
comes to investing in exploration activities.<br />
Such tools are already used at Jwaneng Mine in Botswana,<br />
where the focus is on expanding operations. AI helps Jwaneng<br />
determine precise belts to blast and increase overall productivity.<br />
An efficient digital twin<br />
Another example is Exxaro, which invested R3.3-billion in<br />
digitalisation of its mining operations. Exxaro invested in<br />
developing a digital twin of the Belfast mine in Mpumalanga<br />
province, which made simulating various scenarios easier<br />
and overall mine management more effective. A digital<br />
twin enables an innovative approach to mining and<br />
creates a much safer and more efficient environment.<br />
Additional AI applications include predictive<br />
maintenance, which is expected to become one of the<br />
key focus areas for miners across the world. Ensuring<br />
productivity and eliminating downtime are key<br />
Shaun Vorster, Partner,<br />
Forvis Mazars.<br />
68 | www.opportunityonline.co.za<br />
PHOTO: Exxaro
AI IN MINING<br />
AI is here, are we using it effectively?<br />
priorities for miners and AI-powered technology has already made<br />
significant progress in this field.<br />
Another less explored application of AI technology relates<br />
to community relations which is an extremely important factor,<br />
especially in South Africa. Indeed, mining companies often<br />
struggle to quantify and assess the impact of mining operations<br />
on communities or to predict and prevent potential unrest that<br />
can result in operational downtime.<br />
By focusing on value and people, mining companies can<br />
improve their interaction with communities while also ensuring<br />
the relevance and efficacy of the initiatives they implement.<br />
Real-time stakeholder engagement allows miners to monitor<br />
issues that may arise within communities and help prevent them<br />
by recommending proactive measures.<br />
Furthermore, continuous monitoring of water quality or dust<br />
control helps companies address issues in advance. Once again,<br />
it is the agglomeration of data from various sources and trackers<br />
that can materially reduce the environmental impact that mine<br />
operations have on communities and the environment.<br />
Despite the myriad applications and potential benefits, there<br />
are numerous challenges associated with the implementation of<br />
any new technology, including staff training, change management<br />
and the rate of adoption, which is often impacted by organisational<br />
culture. Naturally, the cost of implementation remains one of the<br />
most important factors precluding companies from introducing<br />
new technologies, especially for smaller operators.<br />
In the case of AI technology, the list of challenges also includes<br />
hiring the right people with the necessary training and skills to<br />
understand the new technology and also ensure that all the<br />
elements are there to make this technology work. For AI-driven<br />
automation and ML to deliver results, companies must invest in<br />
hiring skilled data scientists and analysts.<br />
Companies must also ensure that systems can access large<br />
and accurate data sets to maximise return on investment in AI<br />
technology. Data is the new gold and ensuring its relevance,<br />
consistency and accuracy is paramount to the effective application<br />
of AI technology in the mining sector. Unsurprisingly, businesses<br />
are looking for more effective ways of working with data in terms<br />
of organisation, standardisation and visualisation to improve the<br />
decision-making process.<br />
Finding the best solution for data visualisation offers unparalleled<br />
insights and new perspective capabilities for the entire organisation<br />
and supports decision-making on all levels.<br />
Companies that are investing in effective data analysis see<br />
improvements in operations and, ultimately, a positive impact on<br />
the bottom line.<br />
In a similar way, AI-powered technology has the potential<br />
to transform the mining industry and is already doing so. The<br />
challenge we face is ensuring that the technology used at mines<br />
in Africa is fully adapted to the local context and fulfils the needs<br />
of the sector.<br />
While the potential of AI is endless,<br />
there are concerns surrounding<br />
effective implementation, data<br />
protection and data privacy.<br />
Also, we cannot underestimate<br />
other ethical requirements and<br />
relevant governance and<br />
control processes must be<br />
put in place. At Mazars, we<br />
find ourselves in the centre<br />
of this paradigm shift and will<br />
continue to support our clients<br />
throughout the process.<br />
Dinesh Gurlal, Director:<br />
Data & Analytics, Forvis Mazars<br />
PHOTO: Christopher Gower on Unsplash<br />
www.opportunityonline.co.za | 69
INNOVATIVE PARTNERSHIP<br />
Revolutionising<br />
earthmoving and mining<br />
in Sub-Saharan Africa<br />
K-Tec and Ukwazi have joined forces to offer innovative technology and local market<br />
knowledge for safe contract mining and site-construction solutions.<br />
70 | www.opportunityonline.co.za
INNOVATIVE PARTNERSHIP<br />
In a strategic move set to transform the landscape of earthmoving<br />
and mining operations in Sub-Saharan Africa, K-Tec, a leading<br />
manufacturer of innovative earthmoving scrapers, has<br />
announced a partnership with Ukwazi, a prominent mining<br />
services provider in the region. This collaboration aims to leverage<br />
the strengths of both companies to enhance efficiency, productivity<br />
and sustainability in the mining and construction sectors.<br />
K-Tec's cutting-edge technology<br />
K-Tec, renowned for its advanced earthmoving scrapers, has<br />
consistently pushed the boundaries of innovation to provide<br />
equipment that offers superior performance, durability and<br />
efficiency. The company’s product line includes scrapers designed<br />
for various applications, from large-scale mining operations to<br />
heavy construction projects. K-Tec's scrapers are known for their<br />
high load capacities, fuel efficiency and the ability to handle tough<br />
terrain, making them an ideal choice for the demanding conditions<br />
often found in Sub-Saharan Africa.<br />
The K-Tec pull-pan scrapers are towed behind highhorsepower<br />
tractors or articulated dump trucks for a solution<br />
that offers one operator and one engine running to pick up<br />
material, transport material and spread the material evenly<br />
and efficiently. K-Tec’s scrapers have been successfully moving<br />
material on all seven continents of the world. K-Tec scrapers have<br />
been effective in the mining market with a proven track record of<br />
stripping overburden, mine reclamation, haul road smoothing,<br />
gold, salt, lithium, potash, aggregate, clay, bauxite and gypsum<br />
rock transportation for processing.<br />
www.opportunityonline.co.za | 71
INNOVATIVE PARTNERSHIP<br />
Ukwazi's local expertise<br />
Ukwazi, headquartered in South Africa, has established itself<br />
as a key player in the mining and construction sectors across<br />
Sub-Saharan Africa. With a deep understanding of local<br />
market dynamics, regulatory environments and operational<br />
challenges, Ukwazi brings invaluable insights and expertise to<br />
the partnership. Their extensive distribution network and strong<br />
relationships with mining companies and construction firms<br />
make them an excellent partner for K-Tec as they expand their<br />
footprint in the region.<br />
Ukwazi’s Contracts Manager, Werner Louw, comments on the<br />
new agreement: “Ukwazi has selected K-Tec as its preferred partner,<br />
and their K-Tec scrapers as unique earth-moving equipment,<br />
due to their innovative, cost-effective safe and practical onsite<br />
applications. The innovative application of established equipment<br />
and methods aligns perfectly with our strategy to provide safe<br />
contract mining and site-construction solutions with a significant<br />
competitive advantage, reducing the cost per unit of material<br />
moved by up to 30% to 50%.<br />
“Additionally, the environmental footprint is substantially lower,<br />
with diesel consumption approximately 30% to 40% less than<br />
conventional methods. Moreover, the reduced reliance on scarce<br />
water resources provides a significant advantage over wet mining<br />
systems. We look forward to implementing these methods to make<br />
a real difference to our clients in Sub-Saharan Africa.”<br />
For the K-Tec Direct Mount and ADT scraper products, Ukwazi<br />
will obtain sales exclusivity in the region.<br />
K.A. Group’s International Business Development Manager, Allan<br />
Friesen, explains: “We have been searching for a knowledgeable<br />
and reputable distributor in the African region for quite some time<br />
and are confident that we have found the right partner in Ukwazi.<br />
Their representation, promotion, distribution and servicing of our<br />
K-Tec brand of equipment to heavy construction contractors and<br />
mining operators in their region allows for a massive advantage<br />
in productivity.”<br />
Synergies and strategic goals<br />
The partnership between K-Tec and Ukwazi is founded on<br />
the complementary strengths of both organisations. K-Tec’s<br />
technological prowess and product innovation will be synergised<br />
with Ukwazi’s market knowledge and distribution capabilities.<br />
• Tailored solutions for regional challenges: Sub-Saharan<br />
Africa presents unique challenges, from harsh environmental<br />
conditions to logistical complexities. The combined expertise<br />
of K-Tec and Ukwazi will enable the development of customised<br />
solutions that address these specific challenges, ensuring that<br />
equipment performs optimally under varying conditions.<br />
• Sustainable practices: Both K-Tec and Ukwazi are committed to<br />
promoting sustainable practices within the industry. The use of<br />
K-Tec’s fuel-efficient and environmentally friendly equipment<br />
will contribute to reducing the carbon footprint of mining and<br />
construction projects, aligning with global sustainability goals.<br />
Impact on the industry<br />
The partnership between K-Tec and Ukwazi is poised to have<br />
a significant impact on the earthmoving and mining sectors<br />
in Sub-Saharan Africa. Companies in the region will benefit<br />
from access to state-of-the-art equipment and fit-for-purpose<br />
applications that enhance operational efficiency, reduce costs<br />
and promote sustainable practices. Additionally, the collaboration<br />
will likely stimulate economic growth by supporting large-scale<br />
infrastructure projects and mining operations which are critical<br />
to the development of the region.<br />
Future prospects<br />
Looking ahead, K-Tec and Ukwazi plan to explore further<br />
opportunities for collaboration, including the introduction of new<br />
technologies, partnership on major projects and initiatives aimed<br />
at workforce development and training. By fostering innovation<br />
and sharing knowledge, both companies aim to drive progress<br />
and set new standards in the industry.<br />
In conclusion, the alliance between K-Tec and Ukwazi marks<br />
a pivotal moment for the earthmoving and mining sectors in<br />
Sub-Saharan Africa. With a shared vision of excellence and a<br />
commitment to addressing the region’s unique challenges, this<br />
partnership is set to pave the way for a more efficient, productive<br />
and sustainable future.<br />
This collaboration aims to achieve several strategic goals:<br />
• Enhanced product availability: By leveraging Ukwazi’s<br />
extensive distribution network, K-Tec’s advanced scrapers<br />
will become more accessible to mining and construction<br />
companies throughout the region. This increased availability<br />
is expected to drive significant improvements in project<br />
timelines and cost efficiencies.<br />
• Local support and service: Ukwazi’s established presence in the<br />
region ensures that customers will receive prompt and reliable<br />
support, maintenance and service for K-Tec equipment. This<br />
local support is crucial for minimising downtime and maximising<br />
the lifespan and performance of the machinery.<br />
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INNOVATIVE PARTNERSHIP<br />
About K-Tec<br />
K-Tec is a manufacturer of pull-pan ejector earthmoving scrapers and<br />
accessories for the construction and mining industries. K-Tec’s high-capacity,<br />
minimal maintenance, lightweight and durable scrapers have proven to<br />
work in topsoil, clay, sand, gypsum rock, salt and coal applications. K-Tec’s<br />
scrapers efficiently complete three functions of earthmoving by picking<br />
up material in the cut zone, transporting the load down a haul road and<br />
smoothly ejecting the material in the desired fill area on a job site. K-Tec<br />
scraper capacity ranges from approximately 20m³ to 48m³, pulled by<br />
tractors or articulated dump trucks (ADTs), resulting in the largest scrapers<br />
in the marketplace, allowing for greater production requiring fewer cycles<br />
per day to shrink the earthmoving carbon footprint compared to traditional<br />
methods of earthmoving. K-Tec scrapers have two daily grease points, to<br />
spend time more productively. K-Tec has an industry leading three-year<br />
structural warranty and ISO 9001:2015 certification to stand behind the<br />
quality and workmanship of scrapers.<br />
For more information, visit: www.ktec.com<br />
For further information, please contact:<br />
Shane Kroeker, Director of Strategic Initiatives<br />
Email: Shane.Kroeker@kagroup.com<br />
Telephone: +1 204 746 6435 ext. 258<br />
About Ukwazi<br />
Ukwazi is a niche mining services provider<br />
at its core. It provides integrated multidisciplinary<br />
studies, public reports, due<br />
diligence, project valuation, surface<br />
engineering and sustainable mining<br />
solutions to clients in Sub-Saharan Africa<br />
and the Middle East. The contract-mining<br />
division focuses on niched applications in<br />
the contract-mining value chain.<br />
For more information visit: www.ukwazi.com<br />
For further information,<br />
please contact:<br />
Werner Louw<br />
Email: werner@ukwazi.com<br />
Telephone: +27 11 665 2154<br />
Maria Moganedi<br />
Email: maria@tsebokgadi.com<br />
Telephone: +27 11 665 2154<br />
www.opportunityonline.co.za | 73
INTERVIEW<br />
Harnessing mining’s<br />
potential to drive economic<br />
growth and combat poverty<br />
Combining operational and administrative excellence to ensure compliance to<br />
the highest standards are what sets Mzansi Exploration, Drilling & Mining apart,<br />
according to the Group CEO of Mzansi Holdings, Samkelo Mlambo.<br />
How did the company come to be established?<br />
The journey to establishing Mzansi Holdings began with a<br />
deep commitment to supporting the people of South Africa<br />
amid challenging economic circumstances. With the country<br />
facing some of the highest unemployment rates globally, I<br />
recognised the urgent need to contribute to economic growth<br />
and poverty alleviation.<br />
Having witnessed first-hand the transformative impact of the<br />
mining sector in creating sustainable jobs and driving economic<br />
prosperity globally, I was driven by a passion to harness South<br />
Africa's rich mining potential. This passion initially led to the<br />
establishment of Mzansi in Action Trading, which later evolved<br />
into Mzansi Holdings. This evolution paved the way for the<br />
establishment of Mzansi Exploration, Drilling & Mining, a pivotal<br />
step towards harnessing the economic potential of the mining<br />
industry in South Africa.<br />
My previous experience in strategic business management<br />
and my unwavering commitment to community upliftment were<br />
key drivers in forming a company that not only aims for business<br />
success but also prioritises social responsibility.<br />
Through Mzansi Holdings and its subsidiaries, including Mzansi<br />
Exploration, Drilling & Mining, I aim to contribute to economic<br />
sustainability, create employment opportunities and foster<br />
community development. By leveraging strategic partnerships<br />
and innovative approaches, we strive to make a lasting positive<br />
impact on South Africa's mining sector and beyond.<br />
What have been the most difficult challenges?<br />
One of the most significant challenges has been earning trust in<br />
a well-established industry where competitors have longstanding<br />
relationships. Breaking into this sector required us to build<br />
new relationships and gain credibility. Our strategy focused on<br />
demonstrating reliability through meticulous project execution,<br />
adherence to industry standards and transparent business practices.<br />
How did diamond drilling become a speciality for Mzansi?<br />
Diamond drilling became a speciality due to a keen observation of<br />
market gaps and a commitment to high standards of compliance. I<br />
identified a significant gap in the market for fully compliant drilling<br />
companies capable of meeting rigorous industry standards. The<br />
journey began with a small borehole-drilling company in KwaZulu-<br />
Natal, where I noticed that larger competitors were often sidelined<br />
from major contracts and tenders due to compliance issues. This<br />
pattern was not unique to borehole drilling.<br />
While many companies could deliver quality service in the field,<br />
few could support their operations on an administrative level to<br />
meet stringent regulatory requirements. I envisioned Mzansi<br />
Exploration, Drilling & Mining as a pioneer in providing not only<br />
exceptional field operations but also unparalleled administrative<br />
excellence. Our commitment to sourcing international expertise<br />
and adhering to the highest standards ensures that we stand apart<br />
in the South African drilling sector.<br />
Our dedication to compliance and operational excellence is<br />
ingrained in every project we undertake. As we continue to grow<br />
and expand our capabilities, we remain steadfast in our mission to<br />
set new benchmarks for excellence in diamond drilling and mining<br />
operations across South Africa.<br />
Do you specialise in any types of drilling methods?<br />
Mzansi Exploration, Drilling & Mining is a specialised turnkey<br />
drilling and sampling service provider, offering a diverse array<br />
of drilling techniques tailored to various geological formations<br />
and project requirements. Our comprehensive drilling services<br />
encompass both surface and underground operations, supported<br />
by extensive experience across different geological environments.<br />
Our approach begins with a meticulous evaluation of each<br />
project’s unique challenges, geological conditions and site<br />
specifics. This assessment allows us to determine the optimal<br />
drilling technique, taking into consideration factors such as<br />
borehole depth, diameter, sampling requirements and soil or<br />
rock type. By aligning these considerations, we ensure precise<br />
and reliable results.<br />
Mzansi Exploration, Drilling & Mining offers a comprehensive<br />
range of drilling services, including diamond-core drilling,<br />
percussion drilling, reverse-circulation drilling, sonic drilling, drill<br />
and blast drilling and domestic and industrial borehole drilling.<br />
Our commitment to excellence, coupled with our technical<br />
expertise and dedication to client satisfaction, ensures that we<br />
74 | www.opportunityonline.co.za
INTERVIEW<br />
consistently deliver superior drilling services tailored to meet the<br />
unique requirements of each project.<br />
Do you have expansion plans?<br />
Mzansi Exploration, Drilling & Mining, with offices in KwaZulu-<br />
Natal, Gauteng and Mpumalanga, recently acquired a majority<br />
share in a prominent African exploration company, Geosearch.<br />
This strategic move significantly expands our operational footprint<br />
across South Africa and various regions of the African continent.<br />
Please give an example of a challenging<br />
project successfully carried out.<br />
One of our notable achievements was in completing South Africa's<br />
first CCUS (Carbon Capture, Utilisation and Storage) pilot project.<br />
Located near Leandra in Mpumalanga, this pioneering initiative<br />
aimed to capture and store CO2 underground, representing a<br />
significant advancement in environmental sustainability.<br />
The project involved drilling a 1 800-metre hole under<br />
challenging conditions, including vertical fractures in the core that<br />
caused substantial water loss, technical complexities and adverse<br />
weather conditions. We exceeded expectations by completing the<br />
project ahead of the timeline.<br />
Despite frequent equipment repairs and logistical delays, our<br />
teams maintained a flawless safety record, demonstrating our<br />
dedication to both project success and environmental stewardship.<br />
This project not only showcased our technical capabilities but<br />
underscored our commitment to innovation and sustainability. It<br />
stands as a testament to our ability to overcome obstacles, deliver<br />
results and set new standards of excellence.<br />
Please tell us about Mzansi’s relationship<br />
with Wits University.<br />
Mzansi Holdings has established a collaborative and ongoing<br />
relationship with Wits University, Africa’s leading academic and<br />
research institution specialising in geophysical exploration<br />
for deep mineral resources. This partnership aims to formalise<br />
engagements and create long-term opportunities for developing<br />
innovative geophysical and geotechnical technologies in the<br />
mining industry, both in South Africa and globally.<br />
This strategic partnership enhances our credibility and reinforces<br />
our position as a leader in integrating academic research with<br />
practical industry applications, ultimately contributing to<br />
sustainable development and growth in the mining sector.<br />
Is there scope in South Africa for more exploration?<br />
There remains significant untapped potential for exploration<br />
in South Africa’s mining sector, despite current challenges. The<br />
Minerals Council’s proactive engagement initiatives with junior,<br />
emerging and exploration members underscore a vibrant industry<br />
environment. Efforts to facilitate easier access to the Johannesburg<br />
Stock Exchange (JSE) through programmes like the Junior Mining<br />
Accelerator Programme highlight a commitment to bolstering<br />
market participation while ensuring robust investor protection<br />
measures. The Exploration Strategy outlined by the Department<br />
of Mineral Resources and Energy (DMRE) aims to revitalise South<br />
Africa’s global appeal in mineral exploration. Published as the<br />
Exploration Implementation Plan, it serves as a strategic roadmap<br />
to enhance the country’s market share in the global minerals sector.<br />
Despite a decline in South Africa’s share of global exploration<br />
activity from 5% in 2003 to below 1% currently, the strategic<br />
positioning of mineral-rich countries becomes increasingly pivotal,<br />
especially in the context of growing global demand for rare earth<br />
minerals and future-oriented minerals.<br />
What do you take most pride in when looking back?<br />
I take immense pride in our unwavering commitment to health<br />
and safety. Across all entities within the Mzansi Group, prioritising<br />
health and safety is a fundamental cornerstone of<br />
our operations. In an industry where health,<br />
safety and environmental protection are<br />
often relegated to secondary considerations,<br />
we elevate these aspects as the pillars of our<br />
commitment. As we continue to evolve<br />
and expand, our dedication to maintaining<br />
the highest standards of health and safety<br />
remains steadfast, ensuring sustainable<br />
operations and fostering a culture<br />
of excellence.<br />
Biography<br />
Samkelo Mlambo is the Group CEO of Mzansi Holdings, a visionary businessman and<br />
a dedicated philanthropist with extensive expertise in the mining sector. Under his<br />
dynamic leadership, Mzansi Holdings manages seven subsidiary companies across<br />
Africa, spanning industries such as exploration drilling and mining, water infrastructure,<br />
petroleum, lubricants and manufacturing. He is the founder of the Action Development<br />
Agency, which has helped thousands of South Africans through its community<br />
development initiatives.<br />
Samkelo Mlambo, Group CEO of Mzansi Holdings.
PROFILE<br />
Mzansi Exploration,<br />
Drilling & Mining<br />
Unearthing South Africa’s reserves together.<br />
Mzansi Exploration Drilling, trading as Mzansi<br />
Exploration, Drilling & Mining, was established in<br />
2008 by Samkelo Thankslord Mlambo. The company<br />
is 100% black owned with over 15 years’ experience<br />
in the exploration, drilling and mining industry.<br />
Mzansi Exploration, Drilling & Mining employs qualified and<br />
award-winning civil engineers, experienced specialist drillers,<br />
geohydrologists, mining engineers, safety officers, quantity<br />
surveyors and geologists and owns and operates a fleet of rigs<br />
and equipment to carry out exploration and percussion projects.<br />
All rigs are supported by a fleet of vehicles and a dedicated<br />
workshop, store and support staff to ensure timeous and safe<br />
completion of projects. The mining and mineral beneficiation<br />
industries have the potential to address the government’s key<br />
objectives of inclusive growth, job creation, economic growth,<br />
transformation and infrastructure development. As a transformed<br />
company, we offer specialised drilling services that are essential<br />
to unearthing and beneficiating South Africa’s mineral deposits.<br />
Mzansi Exploration, Drilling & Mining has a memorandum of<br />
understanding and working partnership with the University of the<br />
Witwatersrand (Geoscience Department) which brings together<br />
the expertise of the mining company and the academic knowledge<br />
of the university to create new opportunities for research and<br />
development, providing a platform for innovation and growth.<br />
Another partnership is with the Geosearch Group. Innovation is<br />
at the core of our existence.<br />
Services<br />
We provide turnkey solutions for<br />
explorational drilling, production drillling<br />
and mining. Our services:<br />
• diamond drilling and ultra-deep holes<br />
• specialised horizontal drilling<br />
• drilling, blasting and core drilling<br />
• percussion drilling and symmetric<br />
drilling<br />
• monitoring and large diametric drilling<br />
• reverse-circulation drilling<br />
• water-borehole drilling.<br />
Integrity<br />
What we do relies heavily on data, analysis and reports. It is imperative that we communicate with our clients with transparency.<br />
Collaboration<br />
We can only achieve brilliance through working together with all our stakeholders.<br />
Health and safety<br />
Safety is not just on a checklist for us, it is factored in everything that we do. We operate in industries where something can fatally go wrong at any moment, therefore it<br />
is important that we keep all parties safe at all points, through our continuous investments in our SHEQ department.<br />
Vision and mission<br />
Our vision at Mzansi Exploration, Drilling & Mining is to be a leader in providing turnkey solutions and sustainable mining practices, driving innovation and growth in the<br />
industry while preserving the environment and improving communities. We aim to deliver exceptional value to our stakeholders through responsible resource exploration,<br />
extraction and management. We strive to build long-lasting relationships with our partners and customers by providing high-quality products and services that meet their<br />
needs. Together, we will shape the future of mining for a better tomorrow.<br />
Contact details<br />
Tel: +27 (0) 10 0010 033 | Cel: +27 (0) 82 739 3297<br />
Email: admin@mzansiexploration.co.za<br />
Website: www.mzansiexploration.co.za<br />
Gauteng | 181 Lever Rd, Noordwyk, Midrand 1684<br />
KwaZulu-Natal | 42 Bulman Road, Mkondeni, Pietermaritzburg 3201<br />
Mpumalanga | 1854 Julindaba Street,<br />
Ackerville Location, Emalahleni 1039<br />
76 | www.opportunityonline.co.za<br />
PHOTO: Retina Creative from Pixabay
Six month expectations Current<br />
SACCI Business Confidence Index – May 2024<br />
Economic data<br />
The SACCI Business Confidence Index (BCI)<br />
2020 = 100<br />
Month 2017 2018 2019 2020 2021 2022 2023 2024<br />
January 112.9 115.3 109.9 106.6 109.2 108.8 112.9 112.3<br />
February <strong>110</strong>.4 114.3 108.0 107.2 109.0 112.0 111.9 114.7<br />
March 108.4 112.8 106.1 103.9 108.7 <strong>110</strong>.5 111.3 114.7<br />
April 109.7 111.0 108.3 89.9 109.5 108.3 107.1 108.9<br />
May 107.7 108.7 107.5 81.0 112.1 103.2 106.9 107.8<br />
The South African Chamber of Commerce and Industry (SACCI) June regularly 109.7 108.3 publishes 107.9 economic 94.1 111.2 data 108.5 108.8<br />
July <strong>110</strong>.2 109.5 106.4 95.7 107.7 <strong>110</strong>.3 107.3<br />
relating to business confidence and trade, the SACCI Business<br />
August<br />
Confidence<br />
103.6 104.6<br />
Index<br />
103.0<br />
and the<br />
99.2<br />
Trade<br />
106.2<br />
Conditions<br />
105.6 108.6<br />
September 107.5 107.9 106.8 99.1 105.2 <strong>110</strong>.9 108.2<br />
October 107.4 <strong>110</strong>.8 106.0 106.4 109.7 109.4 108.6<br />
Survey. As of 2023, SACCI has been collaborating with the November Bureau of 109.9 Market 111.1 Research 107.2 108.0 (BMR) 107.3 in producing<br />
<strong>110</strong>.9 111.5<br />
December 111.4 <strong>110</strong>.1 107.6 109.0 106.4 117.3 112.1<br />
the Small Business Growth Index. For more statistics, see www.sacci.org.za and www.bmr.co.za<br />
Average 109.1 <strong>110</strong>.4 107.1 100.0 108.5 109.6 109.6<br />
BUSINESS CONFIDENCE INDEX<br />
SACCI Business Confidence Index<br />
% Positive<br />
Political stability will drive business and investor sentiment<br />
The national and provincial elections near the end of May 2024 had a<br />
notable effect on business confidence during April and May. The SACCI<br />
Business Confidence Index (BCI) dipped by 5.8 points in April 2024 to<br />
108.9, and further to 107.8 in May 2024, a decline of 6.9 points over the two<br />
months. The formation of the new government will largely determine the<br />
future course of business confidence. In the short term, three sub-indices<br />
negatively impacted the climate in May 2024. The decrease in overseas<br />
tourists and the decline in merchandise import volumes weighed on the<br />
BCI, but positive impacts came from merchandise export volumes and<br />
new vehicle sales. Over the year to May 2024, the SACCI BCI increased by<br />
0.9 points. Inward tourism and the improved rand exchange rate had the<br />
largest positive year-on-year impact. Positive effects also came from the<br />
SACCI Trade Conditions Survey June 2024<br />
higher global price of precious metals and lower inflation. SACCI notes<br />
South African Chamber of Commerce and Industry<br />
with concern that real economic growth slipped to below 1% at 0.5%<br />
Trade Conditions Survey<br />
year-on-year in the 1st quarter of 2024, after measuring 1.4% year-on-year<br />
June 2024<br />
in the 4th quarter of 2023. Political stability and policy certainty will be<br />
Trade Conditions Survey<br />
New Orders<br />
fundamental assurances that<br />
100drive business and investor sentiment. The<br />
80<br />
90<br />
Current<br />
70<br />
80<br />
political deviousness Six month expectations of parties during the election process should give<br />
70<br />
60<br />
60<br />
way to pragmatism and reality 50 that serve future economic improvement,<br />
50<br />
40<br />
40<br />
30<br />
performance, prosperity and inclusiveness.<br />
30<br />
20<br />
Jan-15<br />
Jun-15<br />
Nov-15<br />
Apr-16<br />
Sep-16<br />
Feb-17<br />
Jul-17<br />
Dec-17<br />
May-18<br />
Oct-18<br />
Mar-19<br />
Aug-19<br />
Jan-20<br />
Jun-20<br />
Nov-20<br />
Apr-21<br />
Sep-21<br />
Feb-22<br />
Jul-22<br />
Dec-22<br />
May-23<br />
Oct-23<br />
Mar-24<br />
Current Trade Conditions Index (TAI)*<br />
% Positive respondents<br />
Activity Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24<br />
Sales volumes 26 34 43 44 50 50<br />
New orders 18 25 36 44 39 50<br />
Backlog on orders received 32 16 23 34 32 27<br />
Supplier deliveries 29 31 36 50 46 47<br />
Inventory level 47 25 32 41 46 43<br />
Selling prices 53 38 48 50 54 53<br />
Input prices 66 56 64 69 75 77<br />
Employment 34 38 39 47 32 43<br />
TAI 28 31 38 45 42 47<br />
TAI seasonally adjusted 27 31 36 43 42 48<br />
Note: The indices are diffusion indices and vary between 0 and 100. At 50 an index reflects<br />
a 'no change' situation and above or below 50 implies a positive or a negative reading<br />
depending on the trade component.<br />
* The TAI is the composite index of sales volumes, new orders, supplier deliveries,<br />
inventory levels and employment.<br />
Expected Trade Conditions Index (TEI)*<br />
Activity Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24<br />
Sales volumes 42 50 55 59 61 63<br />
New orders 47 44 52 56 61 63<br />
Backlog on orders received 29 28 34 25 18 20<br />
Supplier deliveries 42 44 55 53 43 50<br />
Inventory level 45 34 50 50 50 43<br />
Selling prices 58 56 64 72 64 67<br />
Input prices 76 72 77 81 86 87<br />
Employment 32 34 45 41 39 40<br />
TEI 42 43 52 53 53 55<br />
TEI seasonally adjusted 39 44 52 51 53 53<br />
* The TEI is the composite index of expectations on sales volumes, new orders, supplier<br />
deliveries, inventory levels and employment.<br />
The expectations are for six months ahead<br />
20<br />
10<br />
0<br />
Jan-15<br />
Jun-15<br />
Nov-15<br />
Apr-16<br />
Sep-16<br />
Feb-17<br />
Jul-17<br />
Dec-17<br />
May-18<br />
Oct-18<br />
Mar-19<br />
Aug-19<br />
Jan-20<br />
Jun-20<br />
Nov-20<br />
Apr-21<br />
Sep-21<br />
Feb-22<br />
Jul-22<br />
Dec-22<br />
May-23<br />
Oct-23<br />
Mar-24<br />
Index<br />
160<br />
150<br />
140<br />
130<br />
120<br />
<strong>110</strong><br />
100<br />
90<br />
80<br />
70<br />
60<br />
40<br />
Jan-10<br />
Jul-10<br />
Jan-11<br />
Downward phase of the business cycle<br />
BCI 2020 = 100<br />
Jul-11<br />
Jan-12<br />
Jul-12<br />
Jan-13<br />
Jul-13<br />
Jan-14<br />
Jul-14<br />
Jan-15<br />
Jul-15<br />
Average -30 109.1 <strong>110</strong>.4 107.1 100.0 108.5 109.6 109.6<br />
Jan-16<br />
Jul-16<br />
2<br />
Jan-17<br />
Jul-17<br />
Jan-18<br />
Jul-18<br />
Jan-19<br />
Jul-19<br />
Jan-20<br />
Jul-20<br />
Jan-21<br />
Jul-21<br />
<br />
The SACCI Business Confidence Index (BCI)<br />
The SACCI Business SACCI BCI Confidence year-on-year 2020 = 100 Index movement (BCI) 2020=100<br />
Month 2017 2018 2019 2020 2021 2022 2023 2024<br />
30<br />
January 112.9 115.3 109.9 106.6 109.2 108.8 112.9 112.3<br />
February 20 <strong>110</strong>.4 114.3 108.0 107.2 109.0 112.0 111.9 114.7<br />
March 108.4 112.8 106.1 103.9 108.7 <strong>110</strong>.5 111.3 114.7<br />
April 109.7 111.0 108.3 89.9 109.5 108.3 107.1 108.9<br />
10<br />
May 107.7 108.7 107.5 81.0 112.1 103.2 106.9 107.8<br />
June 109.7 108.3 107.9 94.1 111.2 108.5 108.8<br />
July 0 <strong>110</strong>.2 109.5 106.4 95.7 107.7 <strong>110</strong>.3 107.3<br />
August 103.6 104.6 103.0 99.2 106.2 105.6 108.6<br />
September -10 107.5 107.9 106.8 99.1 105.2 <strong>110</strong>.9 108.2<br />
October 107.4 <strong>110</strong>.8 106.0 106.4 109.7 109.4 108.6<br />
November 109.9 111.1 107.2 108.0 107.3 <strong>110</strong>.9 111.5<br />
-20<br />
December 111.4 <strong>110</strong>.1 107.6 109.0 106.4 117.3 112.1<br />
Index points<br />
Jan-10<br />
Jul-10<br />
Jan-11<br />
Jul-11<br />
Jan-12<br />
Jul-12<br />
SACCI Business Confidence Index – May 2024<br />
Jan-13<br />
160<br />
SACCI TRADE CONDITIONS SURVEY<br />
150<br />
140<br />
Improved trade conditions expected<br />
130<br />
120<br />
The outcome of the recent national <strong>110</strong> and provincial elections called for more<br />
100<br />
representative governance. The broader<br />
90<br />
agreement by a Government of National<br />
Downward phase of the business cycle<br />
80<br />
BCI 2020 = 100<br />
Unity to address economic challenges collaboratively has filtered through to<br />
70<br />
<br />
60<br />
the trade environment. The May and June 2024 SACCI Trade Conditions Survey<br />
Index<br />
Jan-10<br />
Jul-10<br />
Jan-11<br />
Jul-13<br />
Jul-11<br />
Jan-12<br />
Jan-14<br />
Jul-12<br />
Jul-14<br />
Jan-13<br />
Jan-15<br />
Jul-13<br />
Jul-15<br />
Jan-14<br />
Jul-14<br />
Jan-16<br />
Jan-15<br />
Jul-16<br />
Jul-15<br />
Jan-17<br />
Jan-16<br />
Jul-16<br />
Jul-17<br />
Jan-17<br />
Jan-18<br />
Jul-17<br />
Jul-18<br />
Jan-18<br />
Jan-19<br />
Jul-18<br />
Jan-19<br />
Jul-19<br />
Jul-19<br />
Jan-20<br />
SACCI Business Confidence Index<br />
therefore reflected a more positive tendency. Trade conditions recovered gradually<br />
as the Trade Activity Index (TAI) reached its best level in June. Although still in<br />
40<br />
negative territory with 47% of respondents positive, the six-month expectations<br />
30<br />
were for trade conditions to improve. Sales and new orders remained at improved<br />
20<br />
levels and supplier deliveries were unchanged, with lower inventory levels<br />
10<br />
suggesting increased sales volumes. The expected increase in sales volumes,<br />
0<br />
Index points<br />
-20<br />
expect that sales prices and input costs -30 will rise over the next six months. This may<br />
Jan-10<br />
Jul-10<br />
Jan-11<br />
Jul-11<br />
Jan-12<br />
Jul-12<br />
SACCI BCI year-on-year movement<br />
new orders and supplier deliveries indicates optimism. Continuing high input<br />
-10<br />
costs were still prevalent, although sales prices were relatively stable. Respondents<br />
uphold inflationary pressures and cause the SA Reserve Bank to delay its decision<br />
on an easier monetary stance and lower interest rates. More<br />
2<br />
stable energy supply,<br />
increased electricity generation and lower fuel prices contributed positively to<br />
trade conditions.<br />
Jan-13<br />
Jul-13<br />
Jan-14<br />
Jul-14<br />
Jan-15<br />
Jul-15<br />
Jan-16<br />
Jul-16<br />
Jan-17<br />
Jul-17<br />
Jan-18<br />
Jul-18<br />
Jan-19<br />
Jul-19<br />
Jan-20<br />
Jan-20<br />
Jul-20<br />
Jul-20<br />
Jul-20<br />
Jan-21<br />
Jan-21<br />
Jan-21<br />
Jul-21<br />
Jul-21<br />
Jul-21<br />
Jan-22<br />
Jan-22<br />
Jan-22<br />
Jan-22<br />
Jul-22<br />
Jul-22<br />
Jul-22<br />
Jul-22<br />
Jan-23<br />
Jan-23<br />
Jul-23<br />
Jul-23<br />
Jan-23<br />
Jan-23<br />
Jan-24<br />
Jan-24<br />
Jul-23<br />
Jul-23<br />
Jan-24<br />
Jan-24<br />
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