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Township Economies Conference & Expo proudly announces Takealot as Headline Sponsor

The Township Economies Conference & Expo is thrilled to announce a significant partnership with Takealot, South Africa’s leading online retailer, who has come on board as our Main Sponsor. This collaboration marks a pivotal moment in our ongoing mission to foster entrepreneurship and economic growth within township communities.

Takealot’s sponsorship underscores its deep commitment to supporting small businesses and promoting economic development in underserved areas. As the Main Sponsor, Takealot will play an instrumental role in expanding the reach and impact of the Township Economies Conference & Expo, ensuring it remains a premier platform for innovation, entrepreneurial business development and market growth.

Township economies in South Africa are experiencing notable business growth, with small and medium enterprises (SMEs) playing a critical role. Recent statistics indicate that township-based SMEs contribute significantly to the country’s GDP, generating billions in revenue annually and providing employment opportunities for millions. The entrepreneurial spirit within these communities drives innovation and resilience, with many businesses leveraging digital platforms and e-commerce to expand their reach and market presence. This growth underscores the potential of township economies to be major contributors to South Africa’s overall economic development.

This year’s conference promises compelling features designed to inspire and empower attendees. Notable entrepreneurs and industry leaders will deliver keynote speeches, sharing their experiences and insights on building successful businesses within township economies. These inspiring sessions motivate attendees to pursue their entrepreneurial aspirations and overcome challenges.

Engaging panel discussions will address crucial topics such as digital transformation, access to finance, and sustainable business practices. Experts from various sectors will provide valuable perspectives, equipping participants with the knowledge needed to navigate the complexities of today’s business environment.

The expo showcase will feature innovative products, services, and solutions tailored to the needs of township businesses. This provides a unique opportunity for attendees to connect with suppliers, investors, and potential partners, fostering new business relationships and opportunities.

Additionally, practical workshops and training sessions will be conducted to equip attendees with essential skills and knowledge. These sessions aim to enhance the competitiveness of township businesses, ensuring they are well-positioned to thrive in the market.

The Takealot Township Economies Conference & Expo is a must-attend event for entrepreneurs, business leaders, policymakers, investors, and community members committed to unlocking the potential of township economies and driving sustainable growth. Your participation will empower local communities, foster innovation, and create new opportunities for economic development.

The event will occur on 30 – 31 July 2024 at Emperors Palace in the City of Ekurhuleni.

Empowering Township Economies Together. Join Us at the Township Economies Conference & Expo!

Go to: https://townshipeconomies.co.za/

Mohair’s prospects are looking up

What are the main planks of SAMIL’s sustainability policy?

Our core values are honesty and integrity which translate into looking after our small piece of the world and everything and everybody in it. To this end, everything we do is questioned as to whether it will have a detrimental effect on our environment or our people, whether it be how we farm our goats on the land or how we process the material in our factories.

We only use chemicals that have been certified by OEKO-TEX or an equivalent certification proving that they cause no harm to humans or animals. We have created a work environment on our farms and in our factories and offices where all employees are viewed as assets and are treated as such.

SAMIL CEO Michael Brosnahan
How can more jobs be created in the mohair industry?

More jobs in the mohair industry can really only be created by creating awareness of this wonderful fibre around the world. The price of mohair limits its general use so the main end uses are high-fashion items with exclusive big-name brands.

Are your farmers working on projects to protect the land?

Our farmers are not working on “projects” to protect the land – this is a constant part of everyday life on the farms.

The farmer needs to protect his livelihood, not just for himself but for his children and his children’s children. Many of our Angora farmers have been farming goats on the land for more than 100 years, some into the second and third generation.

What is the Responsible Mohair Standard? Has its introduction had the desired effect?

The Responsible Mohair Standard or RMS is an international voluntary standard that addresses animal welfare on goat farms as well as managing the “chain of custody” of mohair from the certified farms through to the final products purchased by the consumer. The key values of RMS are:

    • protecting animal welfare
    • regenerative agriculture
    • social responsibility
    • traceability

Its introduction has definitely had the desired effect – mohair is once again globally desired which helps to protect the more than 30 000 people employed in the industry in South Africa.

Do you see growth prospects for mohair globally?

There are no doubt growth prospects for mohair globally as it is such a versatile fibre. We have to strike a balance, though, between the price that the farmer needs to ensure his mohair clip is an economic product to farm and the price that the consumer is prepared to pay for mohair products in the marketplace.

 Find out more about SAMIL, visit: https://www.samil.co.za/

Africa aims for food security and global market share: Collaboration paves the way

A wave of optimism is washing over Africa’s agricultural landscape. The recently concluded Market Access Africa 2024 conference served as a powerful testament to the continent’s unwavering commitment to achieving food security and becoming a major player in the global agricultural market.

The conference, brimming with a collaborative spirit and a shared vision, underscored Africa’s immense potential. With a youthful workforce, abundant natural resources, and a growing embrace of technology, the continent is uniquely positioned to revolutionize its agricultural sector.

But achieving this revolution hinges on a three-pronged approach:
  • Prioritizing productivity: Boosting crop yields and overall agricultural output is paramount. This requires investments in innovative farming techniques, improved access to fertilizers and seeds, and a focus on sustainable practices.
  • Building robust supply chains: Efficient and reliable supply chains are crucial for minimizing post-harvest losses and ensuring food reaches consumers effectively. Investments in storage facilities, transportation networks, and digital solutions for tracking and management will be essential.
  • Fostering regional cooperation: Collaboration across borders is key to knowledge sharing, resource optimization, and tackling challenges like cross-border trade barriers. Initiatives like the West Africa Agriculture Productivity Program serve as a model for future partnerships.

By prioritizing these areas, Africa can not only achieve self-sufficiency but also transition from a food importer to a major exporter. This agricultural revolution promises to be a catalyst for economic development across the continent. Increased agricultural output will create jobs, generate export revenue, and contribute to poverty reduction.

The collaborative spirit witnessed at Market Access Africa 2024 offers a glimpse into a brighter future for Africa.

By leveraging its strengths, fostering partnerships, and implementing strategic solutions, Africa can transform its agricultural sector, ensure food security for its people, and claim its rightful place on the global agricultural stage. This revolution has the potential to unlock prosperity for millions across Africa, paving the way for a more secure and sustainable future.

Find out more about Market Access Africa (MAA): https://access-africa.com/

 

30 years into democracy, how has SA’s agricultural sector performed?

By Wandile Sihlobo, chief economist at the Agricultural Business Chamber of SA and author of A Country of Two Agricultures. 

There are divergent views about the effectiveness and extent to which South Africa’s agricultural policies have been implemented. Regardless of how experts feel about the capacity of the state and the policy stance of the South African government since the dawn of democracy, the one undeniable fact is that the sector has grown tremendously. Data from the Department of Agriculture, Land Reform and Rural Development show that domestic agricultural output in 2022/23 was twice as much as in 1993/94.

Whether this growth has been inclusive and transformative is a question I will return to later in this piece. For now, it’s important to emphasise the growth of the industry and the drivers of its expansion. Significantly, this expansion was not driven by a few sectors but has been widespread – livestock, horticulture and field crops have all seen strong growth over this period.

Of course, the production of some crops, most notably wheat and sorghum, has declined over time. This, however, had a lot to do with changes in agro-ecological conditions and falling demand in the case of sorghum, not policies.

These higher production levels have been underpinned, mainly by adopting new production technologies, better farming skills, growing demand (locally and globally) and progressive trade policy. The private sector has played a major role in this progress.

I use the words “progressive trade policy” solely to highlight South Africa’s standing in global agriculture. South Africa was the world’s 32nd-largest agricultural exporter in 2022 – the only African country within the world’s top 40 largest agricultural exporters in value terms. This is according to data from Trade Map.

This was made possible by a range of international trading agreements the South African government secured over the past decades. Africa and Europe now account for about two-thirds of South Africa’s agricultural exports. Asia is also an important market for South Africa’s agricultural exports.

The agricultural subsectors that have primarily enjoyed this progress in exports are horticulture (and wine) and grains.

Aside from the exports

The increase in agricultural output is why South Africa is now ranked 59th out of 113 countries in the Global Food Security Index, making it the most food-secure in Sub-Saharan Africa. I recognise that boasting about this ranking when millions of South Africans go to bed hungry every day may ring hollow, as I pointed out at a few presentations where I cited these statistics.

However, it is essential to note that the lack of access to food that most South Africans face is due to the income poverty challenge rather than lack of availability due to low agricultural output, as is the case in other parts of Africa. We need to ensure that there is employment and that households have sufficient income.

We must remember that the Global Food Security Index balances the four elements (affordability, availability, quality and safety) to arrive at a rating and covers matters at a broad national level. In this regard, South Africa produces enough food to fill the shelves of supermarkets with high-quality products but still has a long way to go in addressing household food insecurity, as many households cannot afford the food that is available in a way that meets their nutritional demands. This is a topic for another day.

Transformation

Earlier on, I noted that the consensus on agricultural growth is at variance with the diversity and sometimes polarising views around the extent to which this growth is sustainable, inclusive and transformative. The gains we’ve seen in agricultural production over the past two decades have not been equitably distributed across the agricultural industry. Specifically, the growth in the agricultural sector has been restricted to organised commercial agriculture, sometimes at the expense of a distinct but heterogeneous cohort of farmers in South Africa.

As I argued in my recent book, A Country of Two Agricultures, “Nearly three decades after the dawn of democracy, South Africa has remained a country of ‘two agricultures’. On the one hand, we have a subsistence, primarily non-commercial and black farming segment; on the other, we have predominantly commercial and white farmers.”

The book adds, “The democratic government’s corrective policies and programmes to unify the sector and build an inclusive agricultural economy have suffered failures since 1994. The private sector has also not provided many successful partnership programmes to foster the inclusion of black farmers in commercial production at scale.

“It is no surprise that institutions such as the National Agricultural Marketing Council estimate that black farmers account for less than 10% on average of commercial agricultural production in South Africa. This lacklustre performance by black farmers in commercial agriculture cannot be blamed solely on historical legacies.”

While this paints a bleak picture of transformation in the agricultural sector, what we can also not ignore is the anecdotal evidence pointing to the rise of black farmers in some corners of South Africa. We see this in field crops, horticulture and livestock in the Free State, Western Cape, Eastern Cape and other regions.

Employment

Even with the adoption of technology that catalyses agricultural productivity improvements, employment in South Africa’s agriculture industry has remained robust. For example, about 922 000 people were employed in the industry in 1994, according to data from Statistics South Africa. This is both seasonal and permanent labour. While the share of seasonal and regular labour changed over time, the broad conditions remained vibrant. In the third quarter of 2023, about 956 000 people were working in primary agriculture, a 4% increase from 1994.

…what we can also not ignore is the anecdotal evidence pointing to the rise of black farmers in some corners of South Africa. We see this in field crops, horticulture and livestock in the Free State, Western Cape, Eastern Cape and other regions.

As South Africa moves forward, let’s always be mindful of the progress that has been made in boosting our agricultural fortunes. And in the quest to grow and be more inclusive, we should be vigilant of the unintended consequences of the policies we seek to implement. Equally, we must never be complacent with the dualism we continue to see in South Africa’s agricultural sector.

The task, then, is how to grow South Africa’s agricultural sector more inclusively and transformatively.

This will need the private sector (organised agriculture groups and agribusinesses, etc.) and the government to craft a common vision for the sector with clear rules of engagement and monitoring systems. This can build on the work of the National Development Plan (Chapter Six to be specific), the Agriculture and Agro-processing Master Plan, the Land Reform Agency (yet to be launched by government) and other progressive programmes and policies available to the nation.

The renewable energy landscape in South Africa is expanding

Credit: Bushveld Energy

By John Young

The Humansdorp area supplies a significant portion of the dairy products that South Africa consumes. East London is known as the port that exports expensive German sedans. The mouth of the Coega River is where 60 000 tons of salt are produced every year.

In 2024 and beyond, all of these statements remain true but for each of these Eastern Cape locations there is now an additional economic bounty that is going to transform the energy landscape of the province and potentially, the country.

All of these sites are hosting exciting projects in the renewable energy field. The Eastern Cape has already established itself as the “Wind Power Province” but progress in manufacturing, green hydrogen and battery storage is opening new opportunities.

The greater Humansdorp Jeffreys Bay area hosts no fewer than 13 wind farms, so the announcement in March 2024 that Nordex Energy South Africa is to start making concrete tower sections at a manufacturing facility in Humansdorp makes economic sense.

Up to 300 jobs will be created and work at the tower factory was expected to start in Q1 2024 with the first set of turbines due to be installed in the second half of the year. Having invested in the Eastern Cape since 2013, Nordex Energy South Africa boasts a significant footprint in the province, including a warehouse in Gqeberha and 573MW of installed capacity across five wind-power plants.

Promoting renewables

Both the Coega Special Economic Zone (SEZ), which is located at the Port of Ngqura just outside the city of Gqeberha, and the East London Industrial Development Zone (ELIDZ) have dedicated zones within their precincts for renewable energy projects.

The ELIDZ has been recognised by Global Africa Eco-Parks, a United Nations Industrial Development Organization (UNIDO) initiative, for its environmental stewardship. The ELIDZ is targeting investors both in renewable manufacturing as well as the production and transfer of green power.

Solar component manufacturing at the East London IDZ. Credit: ELIDZ

The Coega Development Corporation (CDC) has published a Coega SEZ Energy Strategy that seeks to develop solar parks and other forms of alternative energy generation methods. It aims to position itself as an ideal export destination for products such as green ammonia.

The Coega SEZ has been chosen by Hive Hydrogen SA as the location of a Green Hydrogen project which will be fully operational by 2026. The project will see a green ammonia plant constructed, valued at approximately $4.6-billion. The main development partners are BuiltAfrica and Hive Energy of the UK who have formed Hive Hydrogen SA, but various other partners are involved.

Local salt manufacturer Cerebos, who own the famous salt works on the Coega River, will supply desalinated water to the project. The hydrogen will be separated from the oxygen by an electrolyser, and hydrogen and nitrogen will be combined to form green ammonia which will be stored in liquid form at a tank at the Port of Ngqura, from where it can be exported around the world.

Gas company Afrox is another partner, although there is no intention currently to convert the oxygen to pharmaceutical grade product as that market is currently well served.

Batteries

Within national government’s Integrated Resource Plan (IRP) there is a stipulation for battery storage.

South Africa has so far issued a handful of utility-scale tenders which include battery storage. Ambri, a US company, has been contracted to supply a 300MW/1 200MWh battery system for a combined wind and solar facility in the Eastern Cape. The local company is Earth & Wire. The first batteries for this project are expected to be delivered in the first half of 2024 with the installation being completed in 2026. The energy-storage facility itself will have the potential to generate an estimated 700MW of wind and 600MW of solar power.

The first project to reach financial close under the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P) was for a 540MW/1.1GWh project in the Northern Cape. Eskom has embarked on a 500MW Battery Energy Storage System (BESS) project and has begun to award tenders.

The Independent Power Producers Projects Office within the Department of Mineral Resources and Energy released a Request for Proposals (RFP) for energy storage whereby bidders had to submit their proposals by early June 2023. This was for 513MW in the first phase, and when complemented by wind and solar projects, will provide baseload energy.

Lithium and vanadium are two preferred solutions for new-generation batteries. Australia, Chile and China are the world’s top producers of lithium, with Argentina and Brazil making up the top five. South Africa is in third place in terms of vanadium production, but China makes more than twice as much as South Africa and the second and fourth-placed Russia and Brazil combined.

Bushveld Minerals in Limpopo describes itself as being “one of only three operating primary vanadium producers” in the world. Glencore and Marula Mining are the other South African companies that mine vanadium.

But Bushveld Minerals has gone beyond mining. Its subsidiary, Bushveld Energy, is to produce vanadium battery electrolyte at its new Belco facility in East London. The aim is ultimately to produce battery systems. The plant was built with the support of the Industrial Development Corporation (IDC), which is well placed to assist in the creation of a value chain for vanadium batteries in South Africa. If Bushveld Energy reaches its target of eight-million litres, it will be the largest plant of its kind outside of China.

Credit: Bushveld Energy

Namibia Oil and Gas Conference 2024

The 2nd edition of the Namibia Oil and Gas Conference will return in August under the theme; The Next Steps towards a Prosperous Oil and Gas Industry – another unparalleled opportunity for local and global investors to connect, develop and sign deals and partnerships.

The programme will focus on key issues such as sustainable development, investment opportunities, and technological advancements in the industry, alongside an international exhibition.

With an agenda that includes expert panels, keynote addresses, and networking opportunities, the conference promises to be an essential platform for shaping the strategic direction of Namibia’s landscape.

Find out more! Visit https://www.namibiaoilandgasconf.com/

The pivotal importance of infrastructure

The Sishen circle has been widened. Credit: SANRAL

Investments have been flowing steadily into the Northern Cape as mining and renewable energy projects pique the interest of domestic and international companies. To maintain and accelerate that flow, national, provincial and local government is pouring resources into constructing new infrastructure.

This includes digital infrastructure. The Northern Cape Provincial Government has been actively pursuing a digital strategy to expand access to the Internet. Examples of successful rollouts include free WiFi hotspots at all youth centres and 91% penetration of connectivity at the province’s health facilities. Private companies are doing their bit too, as telecoms operators Vodacom and MTN redouble their efforts to extend the range and quality of their signals across South Africa’s biggest province. More details appear in the ICT overview of the 2024/25 edition of Northern Cape Business, the annual guide to business and investment in the province.

The decision by Colossal Concrete Products to bring the precast concrete factory in De Aar back to life is a significant boost for infrastructure in the province. As the company’s Chief Executive Officer (CEO), Gwen Mahuma-Madida, said at the ribbon-cutting in October 2023, “Africa is rich in natural resources, but much-needed growth and progress are often hampered by lack of finance and the required infrastructure. Colossal Concrete Products understands the pivotal importance of infrastructure development and the impact that this has on the economic development of any country.”

With a brief from Transnet Freight Rail to make railway sleepers, Colossal Concrete Products will also be looking to expand into the renewable energy sector (wind towers) and the construction sector more broadly.

Colossal Concrete Products is making precast concrete at De Aar. Credit: Colossal Concrete Products

Presenting the provincial budget in 2024, Finance MEC Abraham Vosloo allocated R20-billion to health and R25-billion to education in a budget of R68-billion. These social services are the main responsibility of this level of government. Provincial priorities are health facilities, schools, roads, housing, energy, water and sanitation. As Northern Cape Premier Dr Zamani Saul says, “Infrastructure investment is the backbone of a thriving economy.”

Two public infrastructure property projects that will be tackled in 2024 are a R30-million renovation of Mayibuye Centre and a R10-million upgrade for the AR Abbass stadium in Kimberley.

Municipalities can receive help in rolling out infrastructure through the Municipal Infrastructure Grant (MIG) programme. A Public Infrastructure Unit Cost Guideline has been developed by the Municipal Infrastructure Support Agent (MISA) to help municipalities control expenditure of MIG money.

Special Economic Zones

One of the most important types of infrastructure in the Northern Cape is Special Economic Zones. Generous incentives and rebates make investing in these SEZs attractive, as does the spinoff effect achieved from the clustering of companies in related fields.

The Northern Cape Department of Economic Development and Tourism (DEDaT) has supplied articles for the 2024/25 edition of Northern Cape Business, highlighting the special focus of each of the Namakwa Special Economic Zone (with Vedanta Zinc International as the core tenant), the Upington Industrial Park, the Kathu Industrial Park, the De Aar Logistics Hub and the Boegoebaai Special Economic Zone, Deepwater Port and Green Hydrogen Cluster.

The Northern Cape, as a dry province that relies heavily on agriculture, has adopted a Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle climate change issues. Floods, droughts and fires are becoming more frequent and more severe; planning can at least mitigate the negative outcomes to some extent.

Other support for agriculture will come in the form of infrastructure at the Upington Industrial Park, which will act as a services centre for road, rail and air transport, agriculture, agro-processing and manufacturing.

Farmers and agro-processors are increasingly drawing attention to the need for good roads for the delivery of their products to market and they will be hoping that these parks will help to provide the necessary infrastructure.

In a similar vein, the Namakwa SEZ in Aggeneys will become an industrial cluster for mining and agriculture services, beneficiation and manufacturing.

The Boegoebaai Port and Green Hydrogen Cluster has the potential to be transformative, especially as it might signal a real and significant step towards the establishment of a green hydrogen market in South Africa, and therefore a step towards a cleaner, greener energy environment.

Roads

National roads agency SANRAL has taken over responsibility for several “strategic” roads that used to fall under the provincial government. This handover happened in 2023 and takes SANRAL’s responsibility in the province to 4 409km.

SANRAL announced a R14-billion three-year plan for the province’s roads in the same year, covering maintenance and improvements.

The N14 highway is an important element of the infrastructure of the province. Also known as the Industrial Development Corridor and passing through the Kathu Industrial Park, the N14 runs from Springbok to Pretoria, crossing the Orange River at Upington and providing the main connection between the various existing and proposed industrial parks and SEZs in the province.

SANRAL’s most recent work on the N14 involves a R60-million upgrading of three intersections between Olifantshoek and Kathu. This included increasing the size of roundabouts to allow for wider turning circles and improved traffic flow. This was in response to growing numbers of heavy vehicles passing through the Kathu South circle every day.

The following roads-related projects also serve to provide employment opportunities: Valazonke Projects, a labour-intensive programme to fix potholes; Welisizwe Programme, construction of rural bridges; S’hamba Sonke Projects, road maintenance on secondary and rural roads.

The Operation Vala Zonke programme had fixed 23 334 potholes at the time of the Premier’s State of the Province in February 2024. In addition, a pothole-fixing programme forms part of the curriculum of the staff taken on by the newly established Northern Cape Construction Company. In the course of studying for a Road Construction Level 3 learnership offered by the Construction Education & Training Authority (CETA), the group’s pothole repairs made a difference to the state of the local roads.

Water

The Vaal Gamagara Water Supply Scheme (VGWSS) was originally built to supply water to the semi-arid areas of Kalagadi. It has been expanded to supply to the Dikgatlong, Tsantsabane, Gamagara and Joe Morolong municipalities and nearby mines and farmers.

Water infrastructure is being installed where it is needed most. GIC engineers laying pipes in Kathu. Credit: GIC

The first phase of an upgrading and replacement project of a 75 km between Roscoe and Blackrock has been completed, benefiting about 6 000 households, mines, municipalities, farmers and Transnet. However, the VGWSS has struggled to keep up with demand.

Minerals Council South Africa reports that more than 20 mining companies are paying a premium compared to other users for water in the scheme towards a capital-raising fee to pay for the second phase of the VGWSS.

So far R268-million has been raised from the premium and it is ringfenced for the second phase of the pipeline upgrades, which includes upgrading the 260 km pipeline between the Vaal River extraction point and Roscoe near Kathu.

The Northern Cape’s biggest town and provincial capital, Kimberley, has been facing infrastructure challenges for some time, particularly regarding water provision.

National Treasury has approved funding of R2.5-billion through its Budget Facility for Infrastructure (BFI) for the Sol Plaatje Municipality to repair and upgrade water infrastructure and to improve water quality.

Prioritising transformative action and innovation at the Hotel and Hospitality Expo Africa 2024

At the 2024 edition of the Hotel and Hospitality Expo Africa, held from June 11-13 at the Sandton Convention Centre in Johannesburg, transformative action and innovation took centre stage, redefining hospitality across the continent. Featuring a diverse line-up of speakers and discussions, the Expo highlighted the importance of sustainability, technology, and local innovation in shaping the future of African hospitality, reaffirming it as the premier platform for driving growth and excellence in the sector.

“The Hotel and Hospitality Expo Africa connected brands and decision-makers, proving once again that it’s so important to create a space where industry leaders can share knowledge and prioritise important topics such as sustainability,” said Margaret Peters, Event Manager at dmg events.

Sustainability was one of the central conversation points at the event, unpacking the importance of sustainability in hospitality and its influence on decision-making and strategy. As a recent article in Southern and East African Tourism Update, emphasised, ‘consumers are travelling more thoughtfully and making conscious choices across the entire travel experience.’

Another focal point of the show was on the power of Small, Medium & Micro Enterprises (SMMEs) to drive innovation and propel the hospitality industry forward. Returning for its third year, the Enterprise Development Pavilion, sponsored by the Johannesburg Convention Centre, provided a dedicated space for SMMEs to showcase their cutting-edge products and services. “This platform links emerging businesses, especially black-owned and women-owned enterprises, with key industry buyers, providing valuable exposure and market access. Through this initiative, we empower these businesses to flourish and shape the dynamic future of hospitality,” said Thandubuhle Mgudlwa, Chief Executive Officer, The Johannesburg Tourism Company.

By supporting emerging businesses, particularly those black-owned and women-owned, we actively contribute to economic development and job creation. This creates a ripple effect, leading to a more progressive and prosperous industry for everyone – stakeholders, partners, customers, and the entire community.

On day one of Hotel and Hospitality Expo Africa 2024, the opening keynote address on ‘Exploring the changing landscape of hospitality in Africa’ featured Jeff Blackbeard, Director of Sectors and Markets, Moore Global. As Africa is set to be the world’s second-fastest growing region in 2024 for the travel and tourism market, Blackbeard’s presentation looked at the trends, sustainability and technological transformations needed to ensure Africa becomes a vibrant international destination.

Unpacking some of the core findings from dmg events and Moore Global’s African Hospitality Confidence Index in the presentation, Blackbeard said: “There is confidence in the sector, and as the European market shows confident growth, this will filter into the African market as well. There’s a lot of confidence in the high-end market and there remains significant interest travelling into the Africa region, particularly South Africa.”

Also on day one was a panel discussion on ‘Unlocking opportunities – City destination marketing in Southern Africa’ with Lee-Anne Singer, Marketing and Sales Director at the Singer Group, and Chairperson of FEDHASA Cape, as the moderator, and Mike Vroom, Chief Operating Officer at Newmark Hotels, Reservations and Lodges; Mark Wernich, Cluster General Manager at Raj Cape Town; Thandubuhle Mgudlwa, Chief Executive Officer at the Johannesburg Tourism Company; Monika Iuel, Chief Tourism Officer at Wesgro; and Bronwen Auret, Chief Quality Assurance Officer and Acting Chief Marketing Officer at South African Tourism.

This was bolstered by two fireside chats on ‘Future living – adapting products to anticipate changing guest demand’, and ‘Sustainability – Journey to tomorrow blending purpose and profit’. The latter conversation was moderated by Brett Hendricks, Chief Executive Officer at Motsamayi Tourism Group, and had Gavin Ferreira, Concession General Manager at Kruger Shalati; and Andrea Kleainloog, Partner at Hesse Kleinloog, discussing sustainable tourism. The conversation centred around the bold investment into the Kruger Shalati train in the Kruger National Park during the pandemic and the commitment and purpose that led to its resounding success.

“You must partner with operational sustainability and understand how your ideas are going to play out over the long term. We prioritised sustainability on multiple levels from employment to environmental impact,” said Ferreira. He argued that it was possible to create a more people-centric approach to environmental conservation that has a lasting impact.

Also taking place on day one were panel discussions asking ‘Can sustainability and luxury co-exist?’; how companies can go about ‘Embracing timeless authentic design with innovation – blending aesthetics and functionality’; talking about ‘Pricing strategies and channels – boosting revenue and maximising occupancy’; and an exclusive interview focusing on thinking global while acting local featuring Chris Browne, Owner and Creative Director of Fox Browne Creative.

Day two of the event focused on the overarching theme of technology and the important role it plays in reimagining experiences, personalising guest interactions, and transforming the shape of the hospitality sector. The rise of solutions such as artificial intelligence (AI) and automation have the potential to comprehensively reimagine travel, both in Africa and abroad.

The panel discussion ‘The digital era -striking the balance between embracing AI vs. safeguarding your guests’ privacy and data’ saw Khaya Mbanga, Digital Head of Advisory at BDO South Africa, take on this topic with insightful commentary. The key takeaways from the presentation included the need to integrate the human touch with technology, how to improve business performance with AI, and what hoteliers need to know about Google and Yahoo email authentication.

Other events hosted on day two included: ‘Elevating guest experiences through personalisation’ and how important it is to unlock cultural personalisation; ‘Procurement 4.0 – streamlining supply chain optimisation’; ‘Enhancing synergies between owners and operators’; and a case study looking at how the Internet of Things (IoT) and AI can change the future of energy management within the sector.

Closing the events for day two was a deeply insightful keynote address focused on ‘Launching your culinary voyage – a blueprint for entry into the F&B industry’ hosted by Coo Pillay – director of F&B Protea Hotel by Marriot Johannesburg Wanderers.

“Chefs today aren’t just cooks, we’re businesspeople. We need business acumen and entrepreneurial skills balanced with skills and capability. It is so important for chefs to cultivate a deep passion for your food, your creativity and your culinary excellence,” he said. He went on to unpack some of the key trends to look out for that included plant-based foods, sustainability, and global flavours. “There’s a growing demand for alternative proteins and eco-friendly practices alongside cultural influences for South African cuisine,” he added.

On day three, the core themes were around labour shortages and talent retention. There is a need to bridge the gap and find ways of tapping into skills opportunities as well as capturing the attention of Gen Z. The day also looked at healthy eating, locally-sourced quality ingredients, and experiential dining. Discussions that took place included ‘How hospitality can use design thinking’; ‘Paving the way for an engaged workforce’; ‘Becoming an incredible employer and solving the unemployment crisis – what steps are being put in place to build a diverse workforce’; homegrown culinary innovation’ and ‘Embracing the future of hospitality and beyond.’

The fireside chat moderated by Lee-Ann Bac, Director of BDO South Africa and attended by Hamza Farooqui, Founder and CEO of Millat Investment; Ram Lokan, Principal at Kasada Capital Management; and JS Anand, Founder and Owner of Leva Hotels, Dubai, unpacked the theme of ‘Investment – the African hospitality industry’. The speakers discussed the challenges and opportunities in the South African hospitality industry, including the demand for mid-scale hotels and the importance of ESG. They shared their experiences in scaling up hotels and highlighted the importance of building relationships with global brands while prioritising local innovation.

There should be a push towards local products, local technology and local human capital,” said Anand. “You can be a leader in your sector if you have quality people and invest in your human capital. The culture of the company starts at the top.”

“With over 3,632 attendees and 85 exhibitors recorded at this year’s event, the Hotel & Hospitality Expo Africa will continue to be one of the most important events in the hotel and hospitality sector’s calendar next year, offering delegates an exceptional array of industry-specific experiences,” Peters concluded.

For more information on the Hotel & Hospitality Expo Africa and to download the latest Hospitality Confidence Index visit www.thehotelshowafrica.com.

30 years of a democratic public service

In May 1994, Nelson Mandela was unanimously elected as South Africa’s first democratic president by the National Assembly, with Thabo Mbeki and FW de Klerk as deputy presidents.

The principal of the National School of Government (NSG), Professor Busani Ngcaweni, says despite the many challenges facing the public service, public administration “is on an upward trajectory”.

As the country moves towards 30 years of democracy, Ngcaweni notes that despite some negative public sentiment on its efficacy, the public service has evolved a lot over the past 29 years. In the early years of democracy, government had a mammoth task of putting in place an inclusive public service to serve all South Africans, including setting up democratic institutions.

Thirty years into democracy, what does the future hold for the public service?

The journey

Ngcaweni describes the first public service, under former President Nelson Mandela, as “characterised by phenomenal growth and achievement”, adding that it was an intense period with rapid transformation. “We had to transform the character of the public service to serve more citizens. We had to transform and create one administration.” He says the second generation (from 2008 to 2004) in public administration was that of both elected and appointed officials who worked to consolidate the gains of the first administration.

Government, through public servants, worked hard to produce programmes that continue to benefit South Africans. “So, for example, during that first 10 years of democracy, you see the consolidation and expansion of the social security system. They did not hire consulting firms to create that system. It was created by public administrators,” he adds.

It was during this time that the country hosted major conferences, such as the World Summit on Sustainable Development, the Organisation of African Unity (OAU) conference that led to the transformation of the then OAU into the African Union and the World Racism Conference.

“This redefined South Africa in the eyes of the global community and, of course, there were laws that were legislated and implemented such as the Employment Equity Act (Act 55 of 1998) and Black Economic Empowerment and we were beginning to see a major growth as well in terms of black people who were working formally in the labour market,” he says.

Highlights from the third administration, led by former President Thabo Mbeki, include preparations for the country to host the 2010 FIFA Soccer World Cup – backed by a growing economy. Public servants continued to offer innovative ways of delivering service to South Africans.

On 16 June 1999, Thabo Mbeki was sworn in as South Africa’s second post-apartheid president. Mbeki appointed Jacob Zuma as deputy president.

The fourth administration, under former President Jacob Zuma’s leadership, saw the World Cup being hosted on African soil for the first time. “This World Cup was prepared for by public servants. They worked on it, set up new institutions like the [National] Planning Commission and set up departments like the [Department of Performance] Monitoring and Evaluation,” adds Ngcaweni.

Stumbling block

The global financial crisis in 2008 harmed the country’s economy. “There was a major reversal when we entered the period of care and maintenance for most of the problems of government.”

The fifth administration continued with care and maintenance and there “was a kind of turmoil in public administration during that period”.

“We ended up having State Capture and we had instability in many institutions of state and that took away the ability of public administrators to perform diligently.

“But there were still some good things that were happening, like Operation Phakisa during that period but the focus just changed, there was major disruption in terms of people being focused and we didn’t do as much to recover the lost ground in terms of the economy,” says Ngcaweni.

In 2009, Jacob Zuma was sworn in as president of South Africa. Zuma served as president from 2009 to 2018. In February 2018, he offered his resignation.

An initiative of government, Operation Phakisa was designed to fast-track the implementation of solutions to critical development issues highlighted in the country’s National Development Plan (NDP). The NDP guides all government policy formulation and implementation.

The sixth administration is about rebuilding.

Professionalisation of public service

Ngcaweni’s assessment of the public service comes on the heels of the NSG having celebrated a decade of existence in October 2023. The milestone comes after the approval of the national framework towards the professionalisation of the public service.

In 2020/21, the NSG trained 12 000 people, today we are training 85 000 people and that change is because there is a national movement to build state capacity and everyone in the public service must return to school,” says Ngcaweni.

He reiterated the importance of continuous learning among public servants. “Public servants must see themselves as pilots and cabin crew. For you to retain your licence as a crew member or to be in the cockpit, you must constantly return to the simulator because flight conditions are changing all the time.”

He notes that there are some aspects of the national framework towards the professionalisation of the public service that require the amendment of legislation. “Three pieces of legislation are currently in parliament for amendment to give effect to the framework – the Public Service Commission Bill, the Public Administration Management Amendment Bill and the Public Service Amendment Bill.”

Ethics and good governance

On what constitutes good governance, Ngcaweni says, “It is about doing the right thing that serves the public even when no-one is watching you. It must have an impact on those you are serving.”

He adds that it is unethical for public servants to fail to deliver services when they have the means and resources. He is of the view that ethics can be taught and has emphasised the need for a national campaign.

President Cyril Ramaphosa was sworn in as president the day after Zuma resigned. He has served the fifth and current administration since February 2018.

The road ahead

Thirty years into democracy, what does the future hold for the public service? Ngcaweni urges public servants to use available information like the Census 2022 results to reflect on what has been achieved since 1994 and what needs to be done. The bigger question is whether we will be able to sustain the momentum as public servants.

“We cannot continue to bask in the glory of those who have achieved what is contained in the Census [2022 report] and not think about what we, as a generation of public administrators, will achieve,” he concludes.

Los Angeles-based business leaders commit to investing in Durban

City leadership had a successful investment and destination promotion meeting with Presidents and Chief Executive Officers from various organizations in Los Angeles, USA, as part of the reSURGEnce Conference activations.

Los Angeles-based businesses in the United States of America have expressed confidence in eThekwini Municipality’s value-proposition aimed at attracting investment into the City across various sectors.

This comes after the City’s Economic Development and Planning Chairperson Councillor Thembo Ntuli led the government delegation, including eThekwini City Manager Musa Mbhele and Head of Catalytic Projects, George Mohlakoana, during a dinner engagement.

The engagement was attended by over 30 Presidents and Chief Executive Officers from various corporate organisations in Los Angeles.

Business and city leaders agreed to collaborate on a number of projects in sectors that included property development, health, artificial intelligence and arts.

Reflecting on deliberations and resolutions of the engagement, Councillor Ntuli said: “This was a highly successful business meeting with some of the most successful entrepreneurs in USA. The business community in Los Angeles is eager to invest in Durban and have a footprint in our City. As government, we will do everything to support them.”

Mbhele said the engagement enabled the City and business leaders in Los Angeles to share strategies and develop a common plan of action.

“I am humbled and excited about the future prospects of our City. The presentations that have been made are exactly what we came to Los Angeles for. We will embark on further discussions with the business leaders as we continue to reach out to the rest of the world and the African continent to attract investors into eThekwini,” said Mbhele.

The City delegation is in USA as part of an aggressive drive to attract investors and position eThekwini as a serious economic player in the world.

The meeting with business leaders in Los Angeles was also a platform for the City to discuss the reSURGEnce Conference taking place at Inkosi Albert Luthuli International Convention Centre (Durban ICC) from 17 to 21 July 2024.

The reSURGEnce Conference is a global business event aimed at highlighting the status of businesses in New York, Africa, America, and globally. It celebrates and promotes successful entrepreneurs within these communities while providing critical resources and support for those who need them most.

This conference offers an unparalleled opportunity to discuss ways that can strengthen local economies, create jobs and close racial wealth gaps. Under the theme “Moving the needle forward towards economic emancipation” this year’s conference seeks to establish trade relations and progressive investment talks between government and business on small business development and opening corridors of trade between Africa and the USA.

Critical areas of business collaboration are particularly focussed on the following sectors:

• Trade and Investment
• Destination Promotion and Tourism
• Meetings, Incentives, Conferences and Events
• Promotion of Arts and Culture
• Entrepreneurship, Education and Training
• Export opportunities including Agro-processing, Citrus and Natural Health-related products.

Explore investment opportunities in Durban

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