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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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SME FUNDING<br />

Helping SMEs grow<br />

Leveraging funding options and navigating financial challenges<br />

for SME growth through Old Mutual SMEgo.<br />

Small and Medium Enterprises are the cornerstone of<br />

the global economy. The 2024 United Nations General<br />

Assembly designated June 27 as "Micro, Small, and<br />

Medium-sized Enterprises (MSMEs) Day" to raise awareness<br />

of their contributions toward achieving the United Nations<br />

Sustainable Development Goals (SDGs) – specifically SDG 8 (decent<br />

work and economic growth) and SDG 9 (industry, innovation, and<br />

infrastructure). According to UN statistics, SMEs account for 90%<br />

of businesses, more than 70% of employment, and 50% of GDP<br />

worldwide, thereby remaining core to the economy.<br />

Small and Medium Enterprises (SMEs) in South Africa are vital<br />

to the economy as their operations drive job creation, innovation<br />

and economic growth. Despite their relevance, SMEs face a range<br />

of constraints that hinder their ability to thrive. To expand and<br />

sustain their businesses, entrepreneurs need to understand and<br />

overcome these challenges, employing potential solutions and<br />

effective financial management strategies.<br />

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Old Mutual SMEgo is a multifaceted platform that acts as a onestop<br />

shop for small to medium enterprises offering Business<br />

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consensus on the macro, micro and environmental factors that<br />

influence the efficiency and growth of SMEs, these factors include<br />

access to finance, infrastructure, governance and market access.<br />

Additionally, aspects such as gross domestic product (GDP),<br />

unemployment rates, spending patterns, inflation and monetary<br />

and fiscal policy also form part of the broader financial ecosystem<br />

affecting SME operations. Understanding these obstacles enables<br />

businesses to develop strategies tailored to their specific needs<br />

and capabilities, regardless of their size.<br />

According to a 2024 International Finance Corporation (IFC)<br />

analysis, the financing gap among MSMEs in developing countries<br />

is $5.2-trillion annually. Governance, small budgets, financial<br />

acumen, brand recognition and skills are significant challenges<br />

for small businesses scaling up.<br />

The loans available include:<br />

• Business Funding (Secured and Unsecured): up to R50-million<br />

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business operations<br />

• Contract Finance: up to R20-million to fund approved customer<br />

contracts<br />

• Purchase Order/Tender Finance: up to R10-million to fund<br />

approved customer purchase orders/tenders<br />

• Supply Chain Finance: accessible cashflow solutions for<br />

businesses up to R10-million<br />

• Personal Loan: up to R250 000 to finance your business.<br />

Basic qualifying criteria include the business being a registered<br />

business in South Africa and operating for a minimum of six<br />

months with an annual turnover of R500 000 and above. While<br />

SMEs face a range of financial challenges, leveraging appropriate<br />

financial solutions and services such as Old Mutual SMEgo can<br />

significantly alter the trajectory of SME operations. Old Mutual<br />

SMEgo has flexible subscription options to suit different budget<br />

needs and business requirements. The monthly subscription<br />

options are the Premium Plan for R99 and the Premium Plus Plan<br />

for R299. The platform is available on www.smego.co.za. Also<br />

available on Android and ios.<br />

Old Mutual FOR SME is offered by Old Mutual Corporate Ventures, a<br />

company in the Old Mutual Group. Terms and conditions apply.<br />

Matching funders<br />

Old Mutual SMEgo offers a unique proposition of an aggregation of<br />

various SME lending experts onto one platform where the system<br />

matches you to your most suitable funders that can be applied to<br />

with a single application with the average response time of 72 hours.<br />

Further to this, the platform provides credit-scoring capabilities<br />

that allow businesses to understand their credit score and get an<br />

indication of the amount of funding their business can take.<br />

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 />

Editor: John Young<br />

Publishing director: Chris Whales<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Salmah Brown<br />

Production: Sharon Angus-Leppan<br />

Ad sales:<br />

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Vanessa Wallace<br />

Venesia Fowler<br />

Gabriel Venter<br />

Tennyson Naidoo<br />

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Gavin van der Merwe<br />

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Printing: FA Print<br />

PUBLISHED BY<br />

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Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road,<br />

Rondebosch 7700<br />

Postal address: PO Box 292,<br />

Newlands 7701<br />

Tel: +27 21 657 6200<br />

Email: info@gan.co.za<br />

Website: www.gan.co.za<br />

No portion of this book may be reproduced without written consent of<br />

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

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

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

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

submission of articles and with their advertising. All rights reserved.


1 Kakie Strachan Rd<br />

Parys, South Africa<br />

+27 (56) 819 8097<br />

info@staycold.co.za<br />

www.staycold.co.za<br />

Staycold International (Pty) Ltd<br />

ENERGY EFFICIENCY<br />

AND INNOVATION<br />

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Our ESG journey reflects this commitment.<br />

We are proud of the steps we are taking<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 />

FUTURE WITH US.<br />

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the future is to step into it with confidence, knowing that we’ve considered<br />

everything. Even the things that may only happen in the next generation.<br />

We’ve been leading the way in systematic investing for over 25 years,<br />

providing consistently superior risk-adjusted returns for our clients.<br />

Environmental, Social and Governance is a core input in our systematic<br />

investment process. Not only because we consider all longer-term<br />

implications for the clients we have today, but because we also care about<br />

the futures of the generations still to come.<br />

Step into your future with a team of experts who understand that the<br />

best path to sustainability, is to consider it all.<br />

To find out more visit prescient.co.za<br />

The future of investing.<br />

Prescient Investment Management (Pty) Ltd is an authorised financial services provider (FSP 612). For any additional information please go to www.prescient.co.za.<br />

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 />

performance. There is no guarantee in respect of capital or returns in a portfolio.<br />

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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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 />

72 | www.opportunityonline.co.za


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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