VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
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VOLKSWAGEN says yes to job creation! THE AGRO-processing & MANUFACTURING I S S U E FEATURE STORY - Page 27 COVER STORY - Page 38-39 Agro-processing and Manufacturing sectors Volkswagen Group South Africa commits have a wide spectrum of companies under it. its support to fund & develop black-owned BKB Limited is one of these companies and suppliers. has proved its great service value within our community. www.businesschamber.co.za 1
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Contents ADVERTISER’S LIST OUR BUSINESS CHAMBER ABSA 041 390 6000 www.absa.co.za CEO’s Letter 5 Editor’s Letter 7 Air Products SA (Pty) Ltd 011 570 5001 www.airproducts.co.za Research Unit Column 10 Algoa FM 041 505 9497 www.algoafm.co.za How To Build A City 13 AON South Africa (Pty) Ltd 041 508 8600 www.aon.co.za Latest News From Task Teams 14 Auto X (Pty) Ltd 041 401 4000 www.willard.co.za/ Annual Golf Day 18 Bay FM 041 811 0555 site.bayfm.co.za CSI 2019 24 BDO 041 374 3222 www.bdo.co.za T Birch & Co (Pty) Ltd 041 363 1360 www.birchs.co.za AGRO-PROCESSING AND MANUFACTURING Businesswomen's Association 041 367 1104 www.bwasa.co.za Coega Development Corporation (Pty) Ltd 041 403 0400 www.coega.co.za Notes From The Top 27 Continental Tyre SA (Pty) Ltd 041 406 5111 www.continental.co.za Mohair Company Attends German Trade Fair 30 Masterplan for the Automotive Industry 32 Dennis Collins Jewellers 043 726 0644 www.denniscollinsjewellers.com SME Focus 34 Dry Ice International cc 071 881 1440 www.dryice.co.za Exporters Eastern Cape 041 373 1122 www.exportersec.co.za Harambee 041 813 9200 www.harambee.co.za BUSINESS ADVICE COLUMNS Howden Donkin (Pty) Ltd 041 409 1400 www.donkin.co.za A view on cyber threat landscapes 41 Inkanyezi Event Organisers (Pty) Ltd 041 363 0310 www.inkanyezi.co.za Breaking Barriers 43 Isuzu 041 403 9111 www.isuzu.com Employment Tax Incentives 45 Joubert Galpin Searle 041 397 9200 www.jgs.co.za Tax Budget Proposals 47 AKM Foods (Pty) Ltd t/a KFC 041 373 7880 www.kfc.co.za From Farm To Fork 49 Khaya Engineering 041 451 0712 www.khayaeng.co.za Is An Employer Obliged To Hold A Pre-suspension Enquiry 51 Stop Multi-tasking 53 KPMG 041 395 1500 www.kpmg.co.za Culture Starts With Leadership 56 Mazars 041 501 9700 www.mazars.co.za Msecure 041 811 8499 www.msecure.co.za Nedbank Ltd 041 393 5800 www.nedbank.co.za SPORT AND LEISURE Nelson Mandela University 041 504 3084 www.mandela.ac.za Ironman Celebrates 15 Years 59 Nelson Mandela University Business School 041 504 4000 businessschool.mandela.ac.za Lets Get Social 60 Oracle Media 082 646 3963 www.oraclegroup.co.za Best Dressed In The Bay 62 Orion Engineered Carbons 041 402 4100 www.orioncarbons.com Connect.Empower.Inspire 67 PKF 041 398 5600 www.pkf.co.za/portelizabeth Exporters Eastern Cape 68 PwC 041 391 4400 www.pwc.com/za Sovereign Food Investments Limited 041 995 1700 www.sovereignfoods.co.za Stainless Accessories Eastern Cape (Pty) Ltd 041 452 3529 www.stainlesssteelbalustrades.net Transnet Freight Rail 041 507 2042 www.transnet.co.za Awards and Recognitions 69 Vodacom 041 396 3148 www.vodacom.co.za Business Chamber Partners 70 New Members 71 Volkswagen South Africa 041 334 4111 www.vw.co.za New Appointments 72 Workstation 041 586 0258 www.workstation.co.za NELSON MANDELA BUSINESS CHAMBER 200 Norvic Drive, KPMG House, Greenacres, 6045 • 041 373 1122 DISCLAIMER www.nmbbusinesschamber.co.za • Registration Number: 94/08719/08 Infocom is published by the Nelson Mandela Bay Business Chamber. Copyright of material in Infocom is the property of the Nelson Mandela Bay Business Chamber unless otherwise attributed or indicated. The contents may, in some instances, be quoted, on condition that prior permission is obtained from the Business Chamber, and that the Business Chamber is quoted as EDITORIAL TEAM CONTRIBUTORS ADVERTISING & SALES PRINTING the source. The views expressed in this publication are views of the authors or respondents, and Odette Parfitt Tham-Tham Uduojie Welma Swanepoel Bukani Print not necessarily those of the Nelson Mandela Bay Business Chamber, unless specifically indicated. Tarryn Vasi Jeremy Dobbin Tham-Tham Uduojie While everything is done to ensure the accuracy of the information presented, no responsibility Odette Parfitt DESIGN for errors can be borne by the Nelson Mandela Bay Business Chamber. The Nelson Mandela Bay Tarryn Vasi Yellow Lizard Business Chamber is a Section 21 (not for gain) business association. www.businesschamber.co.za 3
CEO’s letter Dear Reader In the research that underpins our strategic direction, the Nelson Mandela Bay Business Chamber identified certain sectors that have the potential to contribute massively to economic growth in the Metro. Since then, we have been vocal about the value of sectors that include automotive, tourism, maritime and creative industries. However, this edition has shifted the spotlight onto two critical sectors about which we, as business and residents, do not speak To this end, we have embarked on our How to Build a City series. often enough: agro-processing and manufacturing. Though These talks are designed to encourage frank discussions around Nelson Mandela Bay’s agricultural industry only makes 0,3% of the state of our Metro and what can be done to transform our the metro’s economy, the city and its two ports are the closest city into a thriving economy. Leaders from various sectors will urban stop for various agricultural producers in the region. The share their advice at these events. province is the second largest citrus producer and the single largest wool producer in Southern Africa. What sets the How to Build a City series apart is that our aim is not just to place experts behind a microphone; we want each Against this backdrop, opportunities in agro-processing must be stakeholder in this city – from business to government to civil seized to the benefit of our local economy and the residents who society – to participate. If we hope to build a city that offers the depend on it. best for its residents and businesses, we need everyone’s voices to tell us what that city will need. The same can be said for manufacturing. This issue focuses on all forms of manufacturing, including the automotive industry, The first of these events has already been hosted successfully, and we must nurture this productive sector as a whole. with former Rwandan government official Serge Kamuhinda as Manufacturing accounts for a staggering 18,8% of our metro’s speaker. (More on this can be found on page 13). May his advice economic output and is among the largest industries in terms of herald the beginning of a series of transformative conversations. employment as well. As for the rest of the series and its topics, stay tuned to our website and social media channels. We are all stakeholders in these crucial industries; let us step up and work together to develop it in a sustainable way. NOMKHITA MONA You can read more on how we could go about growing these CHIEF EXECUTIVE OFFICER clusters on page 10, but the Business Chamber has already Nelson Mandela Bay Business Chamber begun the work in supporting sustainable sector development. We empower businesses in various sectors through our Exporter Development Programme (more on this can be found on page 16). Through our Task Teams, we lobby for simpler business process and the provision of basic infrastructure – including reasonably priced electricity, well-maintained roads and a reliable water supply – in order to remove the obstacles that stunt businesses before they are even established. Despite all our efforts, we believe there is still much more to Nomkhita Mona is proudly driven by VWSA be done. www.businesschamber.co.za 5
NEDBANK PARTNERSHIPS LAY A SOLID FOUNDATION FOR AGRI-INNOVATION AND GROWTH A t Nedbank we know that success in business is resilient eco systems, protecting bio diversity and about partnerships, therefore, choosing the right responsible farming practices. Essentially as a sector partner is critical, says John Hudson, Head, and a country we need to do more with less while at the Nedbank National Agriculture. same time protecting our bio diversity and looking after our scarce resources. The adoption of technology and ‘With our unique whole-view approach to business precision farming is assisting in meeting some of the banking, we immerse ourselves in your business so that challenges that require far greater water and energy we understand your requirements and can provide your efficiency as well as security of supply. “ business with the solutions you need, no matter where you are in the agri-sector, be it the primary producer, …actively participating in critical including wildlife, or part of the agri value chain,’ adds Hudson. aspects that impact the long-term sustainability of the agri industry. ” ‘We put the building of lasting, value-adding Food, energy and water… relationships at the centre of everything we do. And that’s why your goals are our goals, and your success As the green bank, Nedbank has been at the forefront of our success,’ he says. financing renewable energy solutions that suit all agri business types whether it is to power the farmhouse and Hudson adds that the Nedbank approach is one of staff accommodation, heating poultry houses, crop engagement and in so doing we aim to understand your drying, irrigation, dairies (pasteurisation, condensation industry and your business, not only in formulating a and cleaning), horticultural hot-houses, wind tunnels, tailored solution but to also continually seek new and water pumps, livestock ventilation heating, cooling and innovative ways to help you manage and grow your humidifying, water pumps and water treatment. money. That means together we can develop unique solutions to help take your business to the next level. Our efforts are geared towards making a tangible difference in the agri-sector, helping to grow the Nedbank is actively participating in critical aspects that economy and create jobs. impact the long-term sustainability of the agri industry. Food, energy and water are inter-related and given the To enquire on how our financial expertise can help take scarcity of resources, an integrated approach is your business to the next level, why not get in touch with required in meeting the ever-increasing challenge of our agricultural teams based in the Nedbank Business feeding the growing population Banking offices around the country. Alternatively, contact us via email at agriculture@nedbank.co.za or Nedbank’s investment in agri-tech company Aerobotics johnhudson@nedbank.co.za. and our long-standing partnership with WWF-SA are examples of how we are tackling these critical issues. The partnership with WWF-SA focuses on creating see money differently SPONGE 5824 6 INFocom - edition one 2019 Nedbank Ltd Reg No 1951/000009/06.Authorised financial services and registered credit provider (NCRCP16).
EDITOR’s letter Dear Reader I’ve been giving a lot of thought to what it takes to build a city. Given that the Business Chamber just recently hosted the first event in its How to Build a City series, this is not surprising. Our first speaker in the series was Serge Kamuhinda, who used to be in the employ of the Rwandan government, and who brought with him the story of his nation’s reconciliation and economic success (you can read more about this on page 13). I briefly visited Rwanda’s capital Kigali last year and absolutely fell These industries are also dependent on exports for a sustainable in love with the immense kindness of its people. I have glimpsed income. The Business Chamber places emphasis on empowering the way in which this nation, once torn apart by unspeakable businesses and preparing them to export, which is the purpose violence, has united to secure a better future. of our Exporter Development programme (read more about this on page 16). My hope is that we, as residents of Nelson Mandela Bay, can follow their lead – because I believe a city cannot be built Through learning about all the Business Chamber’s initiatives, I without the support of all its people, coming together to realise have reached a conclusion about the necessary ingredients of a shared vision. Though the Business Chamber is taking the lead a thriving city. Any city poised for growth needs infrastructure, by starting these necessary conversations, we need each of you basic services, simplified business processes and a unified vision to be a part of the process. – but without decisive leadership, a vision remains a dream. But, while the event series aims to improve the city and address This is my last edition as editor of Infocom, but in my time at the the issues that threaten sustainable business in the metro, this Business Chamber I have become certain that our city’s vision is edition of Infocom is aimed at celebrating successes in two in good hands here. It has been a privilege to be a part of driving important industries. Manufacturing in all its forms remains an change in the Metro, and I intend to continue building this city in integral part of the metro’s economy, while the agro-processing whichever way I can. industry has significant potential for growth. May we all become leaders on the path to progress. On page 30, we ask BKB’s leadership about the company’s secret to success as they celebrate 100 years of business. S4 Integration shares their innovative projects on page 32. ODETTE PARFITT MEDIA AND PUBLICATIONS OFFICER Since automotive manufacturing forms a large part of the local economy, we unpack the implications and goals of the South African Automotive Masterplan on page 34. Agro-processing, light manufacturing and the automotive sector count among the Business Chamber’s priority sectors for development, which is why we have also worked towards enabling growth in these sectors. Our Head of Research unpacks the research that will be done around these sectors and the goals of the Research Unit on page 10. www.businesschamber.co.za 7
NELSON MANDELA BAY BUSINESS CHAMBER STRATEGY championing an enabling BUSINESS ENVIRONMENT The strategy of the Nelson Mandela Bay Business Chamber is based on the Quadruple Helix model of building relationships between academia, industry, government and civil society as the foundation of creating a competitive Nelson Mandela Bay. Along with all our partners in the city, the Business Chamber has adopted a long-term cluster development approach to promote economic growth. We are focused on the Enablers that facilitate the Ease of Doing Business in Nelson Mandela Bay. KEY Methodology Enablers Priority Focus Area 8 INFocom - edition one 2019
Task teams THE ACTION ARM OF THE BUSINESS CHAMBER The Nelson Mandela Bay Business Chamber facilitates the ease of doing business through its strong action arm, consisting of eight well-established task teams. The task teams have traditionally been the enablers by creating an environment in which business can grow, and addressing inhibiting factors impacting business. The Business Chamber is driving the Quadruple Helix concept of building relationships between academia, industry, government and civil society as the foundation of creating a competitive Nelson Mandela Bay. OUR TASK TEAMS WATER TASK TEAM Creating a secure supply at the correct quality level. ELECTRICITY & ENERGY TASK TEAM Creating an energy smart city. ROADS & STORM WATER TASK TEAM Addressing concerns regarding the upgrade and maintenance of key roads and storm water facilities in Nelson Mandela Bay. TRANSPORT & LOGISTICS TASK TEAM Improving logistics to support investment in the region. METRO COLLABORATION TASK TEAM Ensuring strong collaboration between the Nelson Mandela Bay Municipality and the Business Chamber at Executive and Task Team level. SME TASK TEAM Creating an enabling environment for sustainable growth of SME member companies in priority sectors. TRADE AND INVESTMENT TASK TEAM Creating an enabling environment to attract and stimulate trade and investment. INDUSTRY 4.0 Creating opportunities out of the Fourth Industrial Revolution. www.businesschamber.co.za 9
industry attracts industry HOW TO BUILD THE BAY’S AGRO-PROCESSING & LIGHT MANUFACTURING CLUSTERS COMPILED BY JEREMY DOBBIN Labour-intensive agro-processing and light manufacturing have Further to this, in the current era of increasing globalisation, led the economic development of many of the most successful we are experiencing a decreasing importance of city-regions’ cities in south and east Asia, but has not fared so well across natural endowments and local input costs because these factors sub-Saharan Africa. While China’s emergence in the global of production can easily and cheaply be sourced from around manufacturing market in the 1980s resulted in a broad decline the globe. Where clustered networks of firms and institutions in the market share of all other regions, Africa’s decline has been can now take advantage of their local linkages, is by driving longer and deeper than most. innovation-focused competitiveness strategies collaboratively - in simple terms: working (smarter) together to compete better. Experience across highly successful city-regions elsewhere shows us that we need serious re-industrialisation and ‘structural We need to address the extremely high cost of doing business transformation’ in Nelson Mandela Bay that shifts our local labour in Nelson Mandela Bay, and the most effective method of force from unemployment and under-employment to higher- identifying and confronting the binding constraints on our productivity activities. Light manufacturing and agro-processing businesses is to speak and listen to them, and get their leaders in the Bay are generally characterised by a few medium-sized around the same table. Any cluster development strategies businesses providing products to niche foreign markets, and a should fundamentally be decentralised as much as possible; to small number of low-productivity firms providing low-quality increase appropriate collaboration within the business sector, products to the domestic market. These smaller enterprises can to improve accountability between business, academia, and only provide low-paying jobs, little in foreign exchange earnings, government, and to foster competition - not only along an and few productive employment opportunities for young South industry’s value chain, but across various spheres of government Africans. Encouraging the productivity and expansion of our or education. SMMEs in this space has not received adequate support and needs to be addressed. Most importantly, it is about not outsourcing the leadership of a single industry’s future to one specific individual or stakeholder. In Nelson Mandela Bay, advocacy and collaboration across the private business sector that encourages new investment can accelerate both industrial re-development and expansion of profitable business. “Industry attracts industry” and the impact of isolated successes can be multiplied, as demonstrated by Ethiopia’s recent foray into selling cut flowers in EU markets: a single pioneering firm opened the door to a profitable industry that now employs 50 000 workers. The Nelson Mandela Bay Business Chamber has adopted a cluster-specific trade and investment strategy to grow our local businesses and develop the local economy. We are breaking new ground here, as there has never before been a formal, long-term, cluster-led approach undertaken by the Business Chamber - nor our local government - across multiple sectors of the region’s economy. But why “clusters” in priority economic sectors such as tourism, agro-processing, and light manufacturing? And why now? Well, as related firms cluster together (spatially), we find that their costs of production decline significantly as they can collectively: • attract more competing suppliers; • attract more productive and specialised pools of labour; • attract more customers globally; and • share and adopt new ideas and practices. 10 INFocom - edition one 2019
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HOW TO build a city: LESSONS FROM RWANDA COMPILED BY ODETTE PARFITT For the first event in its How to Build a City series, the Nelson Kamuhinda said any city or country could fare as well as Rwanda Mandela Bay Business Chamber on the 15th of March welcomed – with the will of its leadership. “If Rwanda can improve, everyone Serge Kamuhinda, a former senior official in the Rwandan else can do better. Leadership is the gap between potential and government, as main speaker. reality. Leadership has made the difference for us, even though all the odds were against us.” The event, held at the Sun Boardwalk Hotel, brought together over 120 guests to hear Kamuhinda’s account of Rwanda’s Nelson Mandela Bay Business Chamber CEO Nomkhita Mona journey, from a history of genocide to becoming a poster child said she had taken Kamuhinda’s lessons to heart. “If we focus on for progress. three things as a metro, it should be to dream big, start small and move fast,” said Mona. “We recognize that this city is more than Kamuhinda, who is currently Volkswagen’s director of business just the negative energy; there is a lot of good happening in the development for Africa, said the success achieved by Rwanda city as well, but there is a backward movement. has been built on three specific values: “We choose to stay together, we choose to be accountable to ourselves and we “Whatever we do towards building a city, we need to make sure choose to think big. the human element [is included]. We hope we are creating a movement with this series, and we want everyone to participate.” “More than a million people were killed [during the genocide]. That was the status quo we inherited. We chose to have a society Mona said the Business Chamber aimed to host a How to Build based on values everyone can relate to.” a City event each month, to keep the conversation around the city’s progress going. Kamuhinda said these values were visible in umuganda, which involves the community coming together one Saturday each month to clean the city of Kigali, and in the country’s approach to promoting business growth through removing red tape. “In Rwanda, if you want to register a business, it is done within six hours online and then you can start doing business right away.” For more information on the event series or suggestions for speakers and topics, contact info@nmbbusinesschamber.co.za Rwanda is currently the second best country in Africa in terms of the ease of doing business, and the third least corrupt country on the continent. It has also established itself as the third best destination for conferencing, by investing in hotels, establishing RwandAir and simplifying the visa process for foreign travellers. “We tend to see someone coming to our country as a customer experience – and then we track that experience.” www.businesschamber.co.za 13
BUSINESS CHAMBER argues at NERSA HEARING COMPILED BY ODETTE PARFITT The Nelson Mandela Bay Business Chamber presented He also argued that Eskom’s sales forecast during the MYPD 4 a compelling case against Eskom’s recent tariff increase period was based on the assumption that increased prices would application, during a public hearing held by Nersa on the 16th have no effect on electricity sales, while the Business Chamber of January. expects Eskom’s sales to decrease by at least 3% per year, in line with a report by Deloitte. The Electricity and Energy Task Team, represented by board director MC Botha and Task Team member David Mertens, In turn, Mertens said all spending on new capital projects should strongly objected to the proposed increases during their be suspended until new capacity is required, as Eskom is already presentation. generating more electricity than it can sell. Eskom initially requested increases of 15% per year for three The Business Chamber’s presentation ended with further years, but later amended their application to 17,1%, 15,4% and recommendations to: 17,5% over the three years. • Instil a culture of payment in the customer base; • Reduce municipal tariffs to stimulate the economy; and To the Business Chamber’s extreme disappointment, Nersa • Review tariff structures in order to stimulate sales growth. announced on the 7th of March that it had approved increases of 9,41% for 2019/20, 8,1% for 2020/21 and 5,22% for 2021/22. Nelson Mandela Bay Business Chamber CEO Nomkhita Mona This is on top of a 4,4% increase that was approved earlier, said innovative solutions would be needed from Eskom in which takes effect from April 2019. the long term. “They are trying to fix the same model when innovative thinking is needed to counteract the trend of rising The Business Chamber has been actively defending the interest tariffs,” said Mona. “We cannot allow consumers to pay for of businesses by lobbying against unreasonable tariff hikes at Eskom’s mismanagement and shortcomings. We expect the Nersa’s public hearings since 2006, and strongly objected to the power utility and government to come up with forward-looking latest application. solutions and strategies for energy supply, to foster economic growth.” During the presentation, Botha said the ripple effect of such high tariffs on local businesses could lead to economic decline, Through its Electricity and Energy Task Team, the Business a decrease in investment and a sharp increase in unemployment Chamber will continue to lobby for reasonable electricity tariffs and poverty. and a reliable electricity supply for businesses and domestic consumers alike. 14 INFocom - edition one 2019
3187_Willard 7 Letter Word_Magazine Advert_PLOUGHING PRINT.pdf 1 3/20/2019 11:37:20 AM PLOUGHING IS A 7 LETTER WORD. And that 7 letter word is Willard. Preparing the rich soil for the seed that will grow to feed the nation, you need a battery partner you can trust. The power of the technology in every Willard battery ensures that South Africa’s 12.5 million hectares of farmland get farmed. C Willard. The last word in start-up power. M Y CM MY CY CMY K willard.co.za www.businesschamber.co.za 15
EXPORTERS DEVELOPMENT PROGRAMME: what is it all about? COMPILED BY TARRYN VASI The Nelson Mandela Bay Business Chamber strives to always invest time in the development of businesses. One of the programmes that it offers is the Exporters Development programme, in partnership with the Eastern Cape Development Corporation (ECDC). The programme’s purpose is to unpack the intricacies of the exporting space and help local companies to start exporting. It seeks to provide assistance to the different Small Medium Enterprises in order to position the businesses for future growth, as well as to address key constraints that companies face before entering the export market. These constraints involve costs, competitive foreign markets, contact with potential buyers, documentation and the process of changing their product to suit the market. The Exporters Development programme is considered a key pillar in the Eastern Cape Export Strategy spear-headed by ECDC. The pilot phase of the Exporters Development programme involved 10 emerging exporters or SMEs from the Nelson Mandela Bay and Buffalo City Metros. The participants were drawn from a pool of 47 applicants, of which the final 10 were in the following sectors: office furniture, agro-processing, creative and textile arts, footwear, chemicals, engineering, wool and mohair. The programme ran between April 2018 and February 2019, attaining most of the planned outcomes. In particular, the programme bridged the knowledge gap amongst the SMEs by addressing the key constraints that companies face before entering the export market. More importantly, the SMEs had an opportunity to develop an export marketing plan for their businesses with expert advice at hand. The programme was lauded for having a very practical emphasis, which assisted the SMEs to resolve their immediate business concerns. Participants on the programme also received advice and assessment on export marketing plans and export readiness assessments. The Nelson Mandela Bay Business Chamber would like to congratulate the 2018 participants of the Exporters Development programme who will be graduating this year. We wish you success as you continue your journey as an exporter. For more information about the Exporters Development Programme, e-mail Sinazo Yekiwe on admin@nmbbusinesschamber.co.za 16 INFocom - edition one 2019
good news DEVELOPS FROM EXPORTERS PROGRAMME COMPILED BY TARRYN VASI On the 27th and 28th of March 2019, the Eastern Cape Development Corporation (ECDC), hosted the first Eastern Cape Export Symposium and Exhibition at the Abbotsford Christian Centre in East London. The Nelson Mandela Bay Business Chamber’s Operations Manager, Prince Matonsi, attended this event as a guest speaker to touch on the overview of the Eastern Cape Exporter Development Programme. Over 47 SMEs applied to be on the programme and 15 were shortlisted and after a rigorous process which included site visits, the final 10 SMEs were accepted onto the programme. The pilot programme was launched and started on 8th March 2018. Eventually 9 out of 10 SMEs completed the programme. Matonsi’s presentation emphasised the importance of the programme in light of the Quadruple Helix Model upon which the partnership between Eastern Cape Development Corporation (ECDC) and the Nelson Mandela Bay Business Chamber (NMBBC) is based. He also gave an overview on the aims of the programme. He explained how this development programme was being run Furthermore, he explained the key constraints emerging not only to position the Eastern Cape Province as an exporter exporters face in the export market and indicated that this was but to grow exports and also aid in the development of emerging why the programme existed – to educate the SMEs about the key exporters. In doing so, the Business Chamber and Exporters constraints. He also mentioned that even though the programme Eastern Cape provide valuable and practical mentorship to the faced challenges, it turned out to be a huge success. This is why SMEs (emerging exporters) through their exporting members. the ECDC and the Business Chamber will continue to run this This was one of the key aspects of the programme that the beneficial programme in 2019 to 2021 on a three-year cycle. The audience at the conference commended as this gave the SMEs ECDC has committed to roll out the programme to more Metros the much needed hand holding to develop a practical export and Cities in the EC based on the success of the pilot. marketing plan. “The Eastern Cape Province has a “What a privilege it was to have been chosen comparative advantage on the export to be part of this programme. A huge business due to its geographical thank you to ECDC, the Nelson Mandela location, namely: ports; affordable, Bay Business Chamber, ITRISA and the skilled and unskilled labour and an Exporters Club for the opportunity. excellent road network system. As The course content was informative we venture into Africa, it is most and comprehensive. We were made important to note that Africa does aware of the risks and the importance business on relationships. This means of the incoterms and documentation that in order to trade effectively, we required. The visits arranged by the need to note that it is imperative to build Exporters Club were extremely interesting relationships in Africa. There is need for and also gave us ideas of how to streamline more trade organisations in Africa, especially our factory. We have subsequently changed our SADC and the need for introduction of a common production flow and capacity. Our manufacturing process enables currency, like the Euro, to facilitate easy flow of goods and us to employ unskilled workers and train them accordingly, which services competitively. ” is what government wants. We are excited about the future of our business, the opportunity to export and with the expansion, create JOSEPH TAZVIVINGA, OFFICE BUDGET FURNITURE further employment opportunities.” MARLENE MILLARD, SA CANVAS www.businesschamber.co.za 17
One day 18holes THE NELSON MANDELA BAY BUSINESS CHAMBER’S ANNUAL GOLF DAY COMPILED BY TARRYN VASI Normally, a Golf Day is considered as just a fun event for players to relax and have an ‘out of office’ day. However, the Nelson Mandela Bay Business Chamber’s Annual Golf Day brings a different feel as it is considered to be an outdoors networking opportunity through sport. This networking opportunity is not only for the players, but the companies that sponsored and branded tees as well. This year’s event took place at the Wedgewood Golf and Country Estate on the 14th of March 2019. The 4-ball teams came in all geared up, registered for the event, received their goodies (Powerade, water and sunscreen lotion), took their 4-ball photograph and headed onto the course to tee off. The Business Chamber would like to congratulate the winners of the competition, Coca- Cola Beverages SA. Congratulations also goes to Vodacom for coming in second place and GVK Siya Zama Building Contractors for coming in third place. The winner of the Closest To The Pin Award on the 3rd hole is Cameron Harvey and the 7th hole is Justin Marshall - well done! Also, well done to the winner of the Longest Drive Award at the 10th hole, Heinrich Vosloo. A huge thank you goes out to all the players for bringing on good competition, to the sponsors of the tees that brought the fun into the day, Michael Sheehan for the amazing captures of the day, and to the following sponsors for the outstanding prizes: Amobia Communications Newton Park Superspar Atlas Security PwC BLC Attorneys Radisson Blu Hotel Blitzbokke Rand Merchant Bank Dimension Data Remax Independent Properties Dynamic Commodities SA Mohair First National Bank SA Rugby GVK Siya Zama Building Contractors Spec-Savers Kelson Motor Group (Peugeot) Standard Bank Mantis Collection Sun International Boardwalk Market Square VW Uitenhage Vodacom Nashua Vovo Telo Coffee Shop Nedbank 18 INFocom - edition one 2019
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Ladies in red HIGH TEA COMPILED BY TARRYN VASI For the Nelson Mandela Bay Business Chamber, the 14th of February 2019 was not only of significance because it was Valentine’s Day, but because it was the Ladies In Red High Tea too. The sun was out, love was in the air and due to the venue being the Audi Centre, even the Audis were on display. The beautiful ladies in red had the opportunity to network, drink free Mastertons coffee and enjoy a lovely breakfast as they listened to the sweet sounds of Gino-Lee’s singing. The Master of Ceremonies, Tham-Tham Uduojie, welcomed all the beautiful ladies, introduced Gino-Lee as entertainment and even did a few lucky draws. Everything about the event was beautiful. However, the most outstanding aspect of the event was the guest speaker, BLC Attorneys Director and Nelson Mandela Bay Business Chamber Board member Sonja Tifloen’s speech. Tifloen spoke about her incredible journey in life. She spoke about how she had a rough start to her career and explained how she was determined to work hard to reach her goals. Her speech touched on how women’s voices are not always equally heard, and reminded the women in the room that they are “powerful beyond any understanding”. Tifloen said women should rather focus on “internal barriers”, as those are the ones you can actually control. She encouraged women to be ambitious and to “go get what is yours”. Tifloen ended her speech off by asking women to “move away from the stereotypes and work towards diversity and inclusion”. The women in the room then applauded Sonja Tifloen on the words of encouragement. The Nelson Mandela Bay Business Chamber would like to thank the Audi Centre, Magnetic Storm, Mastertons, Broughton Country Estate, Sonja Tifloen and Gino-Lee for their contributions to the event. 20 INFocom - edition one 2019
international relations COMPILED BY ODETTE PARFITT On the 27th of February, the Nelson Mandela Bay Business The delegation expressed that they were impressed with Chamber welcomed a delegation from the East Gothenburg the Business Chamber’s initiatives, including the Enterprise district in Sweden. Development Programme, the in-house Help Desk and the events through which small businesses are empowered and The district was represented by political leaders and officials, linked to larger companies and opportunities. including elected council members Peter Mattiasson and Anneli Eriksson, city district head Gitte Caous, head of communications As part of forming strategic relations, the Business Chamber will for the district Malin Ankarhem and Katja Ahlsell of the Culture continue engaging with the East Gothenburg district to explore House Bergsjön project. ways in which we can assist the community and work together in future. The delegation met with the Business Chamber CEO Nomkhita Mona and Operations Manager Prince Matonsi, with the aim of learning more about the Business Chamber’s initiatives to support SMEs in Nelson Mandela Bay. During the meeting Caous said the delegation hoped to seek the Business Chamber’s advice on how the district of East Gothenburg could assist small business owners in growing their enterprises. Mattiasson added that the aim was to develop businesses and A delegation from East Gothenburg in Sweden visited the Business Chamber in February to seek advice on supporting SME development in their district. From left is Gitte Caous, help them find a market for their products, and ultimately create Prince Matonsi, Nomkhita Mona, Peter Mattiasson, Malin Ankarhem, Anneli Eriksson, more jobs for the district’s residents. Katja Ahlsell and the Nelson Mandela Bay Municipality’s Nicole Scharnick. SUPPLYING INDUSTRIAL GASES TO SOUTHERN AFRICAN BUSINESSES FOR 50 YEARS Service that delivers the Difference www.airproducts.co.za www.businesschamber.co.za 21
just for you MORE ABOUT COO COMPILED BY JEREMY DOBBIN Certificates of Origin As an accredited service provider, the Nelson Mandela Bay Business Chamber signs certificates of origin for businesses in Nelson Mandela Bay. What is a Certificate of Origin (COO)? It is a document which states the origin of exported goods. There are various reasons why it may be needed, including: • Buyer Preference – the buyer may have a preference as to where the goods originate; • Financial Requirement – may be requested by an issuing bank; and • Import Control – the importing country may have specific duties, quotas, or anti-dumping regulations. ANNUAL NUMBER OF CERTIFICATES ISSUED Average annual growth from 2014 to 2018: 1.23% each year NUMBER OF CERTIFICATES ISSUED PER MONTH (2011-2019) August 2018 was our busiest month to date: we issued a record number of 2 042 certificates during the month! NUMBER OF CERTIFICATES ISSUED PER SECTOR IN 2018 22 INFocom - editionFor onefurther 2019 information or assistance with Certificates of Origin, kindly contact coo@nmbbusinesschamber.co.za
budget speech ANALYSED AT BUSINESS BREAKFAST COMPILED BY ODETTE PARFITT While the national budget speech listed several priorities that the kind of growth we need to make a meaningful dent in our could spur business growth, government needs to do more to unemployment situation. In South Africa, sustained growth of promote investor confidence. less than 4% never really brings a meaningful decline in the unemployment rate. This was the sentiment at the post-budget speech business breakfast, hosted by Absa and the Nelson Mandela Bay Business “It’s not just economic growth we want, but inclusive growth. Chamber on the 28th of February. The growth strategies we should be thinking about are the strategies that will lift up as many people as possible.” The event, held at Elizabeth Place, saw business leaders from across the Metro converge in one place to hear Absa’s economist These strategies should include plans to improve private Miyelani Maluleke’s analysis of Minister Tito Mboweni’s budget sector confidence. “We need policies that bring private sector speech. confidence.” Maluleke said government had a crucial role to play in Business Chamber CEO Nomkhita Mona also called on the strengthening the economy. “Government is very important to business community to do their part in creating better business the economy, not just as a provider, but as an enabler,” said conditions. She also encouraged guests to take part in the Maluleke. Business Chamber’s How to Build a City event series. He said the government’s decision to raise the tax burden by “This is a call to stand up and take our city back,” said Mona. adding carbon tax is not helpful to overall economic growth. “We want everyone to be involved. The more we are and the “Part of the solution should be to look at SARS’s efficiency.” louder our voice, the better for our city.” Maluleke also emphasised the need for growth that brings opportunities for the country’s unemployed. “We’re not seeing legalisation & labour WORKPLACE EFFECTS OF MARIJUANA COMPILED BY ODETTE PARFITT The legalisation of marijuana and the effects this could have in “A layperson would struggle with the field test. It would need to the workplace, was the controversial topic of discussion at a be done by a medically trained person who can see the signs.” recent session held at the Business Chamber. Though employers cannot regulate the personal use of The well-attended event was hosted by Joubert Galpin Searle, cannabis, JGS labour specialist Leon van Staden said being with JGS labour specialists and Ampath pathologist Dr JD “under the influence” was usually defined as no longer being Deetlefs unpacking the workplace implications of legalising able to perform one’s duties with the same skills as a sober dagga use. person. Deetlefs explained the processes of testing employees for “Cannabis exposure definitely affects psychomotor abilities and cannabis, but said it could be difficult to gauge whether a this lasts much longer than the high, which has a huge impact in person could be under the influence of marijuana. terms of labour,” added Deetlefs. “The signs can differ from person to person, in the way they The Employment Equity Act determines that employers cannot react to the drug,” explained Deetlefs. compel their employees to undergo testing, but Van Staden and his colleague Rowan Willcock indicated that testing can He warned against testing an employee suspected of cannabis be legally justified due to the nature and requirements of use too early, as the urine test – which must be performed by a certain jobs. medical professional – detects a metabolite which only forms a few hours after use. Willcock added that employers should develop a clear communication plan around cannabis and related workplace Deetlefs said a normal sobriety test is used in Canada, where policies. “Employers must be strict as with alcohol. We don’t the personal use of cannabis has already been legalised. want people in the workplace who are a danger to themselves.” www.businesschamber.co.za 23
BUSINESS CHAMBER CSI INITIATIVES 2019 COMPILED BY THAM-THAM UDUOJIE In 2018, the Nelson Mandela Bay Business Chamber embarked on creating change in the lives of young people by assisting the Elsen Academy and Kleinskool Initiative. We held an equipment drive for Elsen Academy and a full adventure day for Kleinskool Initiative. We would like to thank all those who supported us last year in making our goals a reality. This year we have adopted the Masinyusane Development Organisation, an education focused non-profit entity working with children and families in the townships of Port Elizabeth. The organisation was founded in late 2008 when a group of friends came together and discussed the need for a development organisation. The two flagship programmes they run are Top Learners, aimed at ensuring all of the qualifying learners from Port Elizabeth’s 35 township high schools have access to university; and the Children’s Education & Youth Unemployment, focused on foundation phase literacy. The Business Chamber recognises the need for community development and investing in child education from early on. With Masinyusane, we hope to assist in creating change in our local communities and the lives of young people. As the Business Chamber, we urge all our members to support us in rolling out the initiatives which the Business Chamber will be implementing in assisting Masinyusane. We also request your assistance with the below list in achieving our goals: Top Learner Program: 1. Bus fare for university students 2. Mentorship 3. After graduation – employment plan 4. Access to technology Children’s Education program: 1. Mobile classrooms 2. Books and stationery 3. Security 4. Food for child-headed households 5. Sanitary pads and toiletries 6. Winter clothes This will be an ongoing initiative. It is our goal to invest as much as we can in the lives of young people in Nelson Mandela Bay. Join us in creating that change! Any and all assistance is welcome. Contact Tham-Tham Uduojie at marketing@nmbbusinesschamber.co.za 24 INFocom - edition one 2019
Specialists In Material-Handling Equipment Andile Mtshwane Peter Hodgkinson www.businesschamber.co.za 25
AGRO-PROCESSING & manufacturing Agro-processing and manufacturing count among the sectors identified by the Nelson Mandela Bay Business Chamber for their potential to contribute significantly to the city’s economic growth. These two industries play a crucial role in providing employment and export opportunities in the Bay. This section celebrates some of the successes of member companies in these industries, and highlights the path towards building an inclusive economy within this space. 26 INFocom - edition one 2019
NOTES from the top Wolf Edmayr COMPILED BY TARRYN VASI Agro-processing and Manufacturing sectors have under them a wide spectrum of companies. BKB Limited is one of these companies and has proved its great service value within our community. BKB Limited is not only led by a great team, but by a man of great and real substance, Wolf Edmayr. Wolf Edmayr qualified as a chartered accountant with Deloitte & Touche in Johannesburg. Before joining BKB Limited in 2004, Edmayr held the titles of Audit Partner and Managing Director in various companies. Edmayr, values are what he focuses on and lives his life by. Values are the ‘foundation’ of his relationships and the organisation he leads. Edmayr is considered as ‘an advocate of living with integrity’. This is why people find it easy to trust him and to stay loyal not only to him, but to his brand as well. It is through this loyalty that the brand has grown exponentially. This year, BKB Limited celebrates 100 years of trust. In order to find out more about the background of getting this far, we asked Edmayr a few questions and these were his answers: BKB Limited recently reached its 100 year anniversary. How do you feel about that? Extremely proud! Proud to be part of an organisation that has always placed relationship, values and trust at the forefront of their business strategy. What was your motivation through all these years? We have been very successful in putting together a really competent management team and a great group of people at BKB. Motivation in its widest sense is experienced by everybody. How did a Chartered Accountant become interested in Agro-processing? I really enjoy business. The accounting qualification has been one of the steps (a really good one) that makes business work. Agriculture and Agro-processing have been opportunities that presented themselves along the way. BKB Limited celebrates 100 years of trust. How does one manage to build such a reputation? Our company’s story is a story of relationship and trust. Our relationships are cultivated over time; they are ones that endure and take commitment and trust. Trust comes from a sense of common values and choosing to practise our values rather than simply professing them. Why do you consider your business as the ‘home of agriculture’? BKB is the trusted home of Agriculture in South Africa. This is supported by: • A great team of people. • A diverse offering for all in Agriculture and Agro-processing. • A national footprint. • A reliable partner. How do primary producers and agricultural groups within the Metro, as stakeholders, affect BKB Limited as a business? BKB started in Port Elizabeth 100 years ago. We consider the Metro and all its stakeholders to be part of our business. Although most of BKB’s business is done throughout the country, we are proud to be part of Port Elizabeth and have an offering to the people of our Metro. What were the three biggest achievements for BKB Limited during the past 100 years? • Expanded and positioned as the number one natural fibre and livestock auctioneering business in Africa. • Diversification of the business both locally and internationally. • Maturing into a company culture where people are our differentiating factor with common values that are underpinned by integrity. Where do you see BKB Limited, as a business, in the next 5 years? BKB has over the past year grown as a national player in the Agri-space. We operate from Cape Town to Ermelo and from Upington to Swaziland. The growth trajectory has been established and will be maintained, creating value through innovation and efficiency. www.businesschamber.co.za 27
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Nelson Mandela University is a new generation university, with campuses in the Eastern and Southern Cape, that is doing things differently in striving to become a dynamic African university, recognised for its leadership in generating cutting-edge knowledge for a sustainable future. Change the World mandela.ac.za www.businesschamber.co.za 29
mohair company ATTENDS GERMAN TRADE FAIR COMPILED BY ODETTE PARFITT La Mohair, a local exporter of kid mohair products, was invited to take part in a prestigious trade fair held in Germany in March. The business attended the Europe, Middle East and Africa (EMEA) Trade Fair in Berlin on the 19th and 20th of March. This fair provides mohair producers from across the EMEA region to showcase their products, meet with industry partners and take advantage of opportunities for development. La Mohair already exports to Scandinavian markets and also took part in the Africa Sourcing and Fashion Week in Ethiopia last year. Speaking ahead of the Berlin fair, owner Larissa Primmer said: “We are a relatively small exporter of South African kid mohair products to our international clients, but we hope to broaden our horizons and build a bigger market overseas. “I am mostly looking forward to growing my business and new opportunities for the future.” Primmer said she also hoped to bring more employment and training opportunities for unskilled and semi-skilled women. “Through in-house training programmes we aim to develop and upskill these women to empower them, and to further the success of La Mohair.” lighthouse mes S4 INTEGRATION Industry 4.0 is set to lead the way of digitisation of manufacturing S4 Integration offers services to the end customer covering processes. Manufacturing Executing Systems (MES) are a critical installation, integration, development and support of Lighthouse component of Industry 4.0 as it acts as an enabler to achieve MES. With a number of local installations within the automotive digitisation from end-to-end. and packaging sector, Lighthouse MES has become synonymous with a Manufacturing Executing System with measurable LIGHTHOUSE MES benefits to the end customer. Lighthouse Systems, a global vendor of Manufacturing Execution S4 Integration offers the South African market a tried and tested Systems (MES) software offers; MES/MOM platform. Lighthouse MES is currently servicing • Smart Manufacturing through the digitisation of various industries, including packaging, food and beverages, manufacturing processes and operations. automotive (OEM and Tier 1 – Tier 2), aerospace, building and • Removes traditional organisational silos to optimise construction, electronics, pharma / life science and sustainable business processes. energy. • Creates an uninterrupted thread of real-time critical data throughout manufacturing operations. Lighthouse MES is built on a modular platform consisting of four • The empowerment of organisations, from plant operatives main areas of manufacturing operations, namely Production to executives. Operations, Quality Operations, Inventory Operations, and • Improvement in efficiency, output, compliance and Maintenance Operations. customer satisfaction. • Low risk and high reward. • Industry-ready solutions: • Industry recognition 30 INFocom - edition one 2019
ADVERTORIAL transnet freight rail Transnet Freight Rail is part of Transnet Limited, a public company with the South African government as its sole shareholder. A FEW FAST FACTS ABOUT We are a world-class freight transport company, transporting bulk, break-bulk and containerized freight on approximately TRANSNET FREIGHT RAIL 22 000 route km of railway, of which 1500km covers our internationally acclaimed heavy haul lines - used for the export of coal and iron ore and low density branch lines covering 3 928km. 1 We replaced a total of 6 million trucks in the past financial year. The very core of our business is in the movement of high density cargo over long distances. 2 If you take a plane from OR Tambo, we provided that fuel. We provide a critical link between mines, ports, production facilities and distribution hubs as well as facilitating regional trade by connecting to our neighbouring country’s railways. One of the 3 We railed wheat that could bake 5,9 crucial elements that binds all of us is our interconnectedness, billion loaves of bread. our economic activity, our ability to transform and make every possibility a reality. If you buy an avocado in Europe, 4 chances are it was once in our wagons. This is where we begin to see and shape a new vision and a new mission. Our Mission is all about linking economies, connecting people and growing Africa. 5 Customers are committing long term with us. As we embrace this role, we come to understand that our vision is fuelling Africa’s growth and development as the leading 6 We move South Africa forward! provider of innovative supply chain solutions. Solutions Delivered, our tag line the very essence of our brand and what we want to be known for, we implement our strategic thrusts with vigour and commitment understanding that change is part of our model and that without it, we cannot embrace the future or deliver on our promises. At the heart of our strategy is finding the balance between stability and risk, cascading a culture of innovation and analytics as we implement new technologies and as we transform and secure sustenance of our eco-systems. Our strategic thrusts are rooted in being Agile enough to embrace change. Our focus is on the implementation of digital technologies by a united Transnet which assists us to deliver on our promises every time and allows us to be admired for our service excellence. As we embrace and embody our vision, mission and strategic thrusts, we are able to say with pride that we as Transnet are SOLUTIONS DELIVERED! www.businesschamber.co.za 31
MASTERPLAN for the AUTOMOTIVE INDUSTRY COMPILED BY ODETTE PARFITT The national government has designed the ambitious South aware of the dire need for job creation in our country, and the African Automotive Masterplan to grow the country’s transformation imperative across all sectors. These things can automotive sector into a globally competitive industry. only be unlocked by increasing our participation both across Infocom posed a few questions to Renai Moothilal, executive and deep into the value chain. That means more assembly, director of the National Association of Automotive Component more localisation and value addition - all of which contributes to and Allied Manufacturers (NAACAM), to unpack the objectives higher competitiveness, for even greater volumes of business. of the Masterplan. The objectives work in a virtuous circle. What is SAAM? The biggest shift seen in the incentive policies that will underpin The SA Automotive Masterplan 2035 is an overarching strategic the masterplan, is definitely a move towards driving greater plan to help the automotive manufacturing sector achieve localisation for both vehicle assemblers and component growth levels that will unlock a host of economic benefits for manufacturers - after it was found that the current APDP was business and the country in general. It provides a blueprint for delivering results that favoured assembly, whilst localisation all stakeholders to deliver activities that will ensure the country rates regressed over time. remains one of the key global destinations for automotive manufacturing What is the industry’s, and NAACAM’s, role in driving this agenda forward to 2035? What are the key goals of SAAM? It’s quite simple actually: SAAM is underpinned by a vision that will see “a globally • Find ways of doing business that will contribute to the competitive and transformed industry that actively contributes attainment of the long-term objectives. to the sustainable development of South Africa’s productive • Invest for growth. economy, creating prosperity for industry stakeholders and • Both assemblers and tier one component manufacturers broader society”. need to develop local suppliers and sub-suppliers. To that end, the following objectives will need to be achieved: • Support, rather than prevent, new market entrants. • 1% of global vehicle production • Upskill employees, find innovative ways of creating jobs, • 60% local content and leverage the various incentives and other packages of • 100% employment growth support that are present in the sector. • Competitiveness to leading competitor standards • Give the public a reason to ensure the taxes spent on • Industry transformation supporting the sector, is considered well spent. • Increased value addition within global value chains. NAACAM will continue to be the pre-eminent voice and authority Why are these goals important for the industry? on the South African automotive component landscape, and will The reality is that all of these objectives would need to be always look to ensure that members operate in an environment met in tandem to ensure the country receives the benefits of that is conducive to long term growth and sustainability. having a domestic automotive manufacturing sector. We are all 32 INFocom - edition one 2019
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