South African Business 2016 edition

OVERVIEW Events and

OVERVIEW Events and conferences Bookings in the years to 2017 promise an injection of R1.6-billion. South Africa has more than 1 000 events and conference venues ranging from wine farms and bush lodges to huge halls and exhibition centres. The meetings, incentive, conference and exhibition (MICE) sector is well equipped to grow. The three biggest centres for conferences, exhibitions and events are Johannesburg, Cape Town and Durban, with each city having invested heavily in large venues. But many resorts and game reserves have facilities for conferences, and smaller towns are attractive to some conference planners. KwaZulu-Natal has a good reputation for hosting major events, conferences and exhibitions, and is set host the 22nd edition of the Commonwealth Games. Durban 2022 will host all 71 member territories from the Commonwealth of Nations. The provincial capital is the focus of the sector, but all of the province’s big towns have good facilities and the Garden Route and several wine routes are well suited to a combination of business and pleasure. The Cape Town International Convention Centre (CTICC) plans to double in size, a R4.5-billion project that will create 8 000 jobs annually by 2018. Johannesburg Tourism Company has a dedicated unit, the Johannesburg Convention Bureau (JCB), which works to attract new business to the city. The JCB assists companies in preparing bid documents and is on hand to assist in supplying relevant information in key areas such as telecommunications and IT services and the securing of visas for delegates. The Sandton Convention Centre is surrounded by a range of hotels and is well located for delegates who want to shop in their free time. Eskom’s Megawatt Park Conference Centre and the Absa Convention Centre in Tshwane are some of the larger venues outside Johannesburg. In the Ekurhuleni metropole, the Airport Grand Hotel and Conference Centre is particularly well situated in relation to the main airport. Two of the region’s biggest venues are in the centrally located town of Midrand: Gallagher Estate and Kyalami Events and Exhibition Venue. A premier venue in Pretoria is the CSIR International Convention Centre. A new addition to the Pretoria skyline is the OR Tambo Building, a conference centre designed specifically to cater for the needs of South Africa’s National Department of International Relations and Cooperation. Regular meetings of the African Union and South African National Development Community (SADC) will be held in the R1.2-billion building, which also houses 2 500 departmental officials. SOUTH AFRICAN BUSINESS 2016 116

Trade with Africa Improved infrastructure will boost intra-African trade. OVERVIEW South Africa aims to diversify its economy away from an over-reliance on the primary sector (mining and agriculture) towards a more varied economy in which increased capacity in existing manufacturing sectors is coupled to the growth of wholly new areas such as alternative energy, biofuels and digital television. Trade policies and anti-competitive legislation are being aligned with the imperatives of industrial policy, ensuring that tariff agreements with trading partners do not undercut strategic targets. South Africa, with an annual total trade volume of R2.3- trillion, benefits from preferential trade agreements with the US and EU and its membership of the Southern Africa Development Community (SADC). The acceptance of South Africa into the BRICS group of nations (Brazil, Russian, India, China, South Africa) holds great potential for increased exports. Iron ore and coal are among the biggest export items to India and China, while the EU and US are strong markets for agricultural products like fruit. In the seven years before the global economic meltdown of 2008, sub-Saharan exports to the US grew to -billion, four times more than at the beginning of that period (AT Kearney). A key factor in intra-African trade is the development of improved infrastructure. The establishment of regional corridors is intended to boost this trade, with the North-South Corridor the most significant for the Southern African region as it runs through 26 countries and ends in Durban. Ten corridors are being developed to ease trading and improve access to ports. More than half of South Africa’s trade is with other countries in Africa, but the cost of trade in terms of tariffs, permits and delays at border posts can be very high. Shoprite spends about R200 000 a week in permits to keep its shops supplied throughout the continent. The South African Revenue Service (SARS) has initiated an automated custom system that is reducing costs and improving efficiency. It has been introduced at the Port of Durban, the country’s busiest port. 117 SOUTH AFRICAN BUSINESS 2016