Welcome to the ninth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. The journal is supported by an e-book edition, which can be viewed here.
This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy.
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. In 2020, the inaugural African Business joined the Global African Network stable of publications. The e-book editions can be viewed here.
These unique titles are supported by a monthly business e-newsletter with a circulation of over 23 000.
Chris Whales
Publisher, Global Africa Network Media
Flanders Investment and Trade is organizing the seminar series “Logistics and Distribution in Europe” in cooperation with the local Chambers of Commerce in Cape Town, Port Elizabeth and Bloemfontein, and Sakeliga in Pretoria.
Exporting and establishing a distribution business in the European market is one of the best ways to expand in the current economic climate:
There are different economic reasons to focus on Europe:
The European Union is the largest trading partner and most important investor in South Africa. The economic bloc has the highest income per capita and 65% of the purchasing power is located in the center of Europe, with Belgium in the center.
The currency rate of the Euro stayed very stable and increased more than 25% versus the Rand since the beginning of the pandemic, making exporting more valuable and making the South African products more competitive on the European market.
Having a business in Europe generates valuable hard currency. In order to avoid currency losses and currency exchange risk, it makes economic sense to setup operations in Europe.
Earned income from operations in Europe can stay in the operating company in Europe, avoiding the hassles of currency exchange control in South Africa.
South-Africa is one of the few African countries with an Economic Partnership Agreement (EPA) with Europe. The partnership reduces trade barriers and minimized import duties and levies on both sides. Please review the Market Access Database (www.madb.europa.eu) of the EU to see if there are any barriers in place.
South Africa is logistically well connected with Europe & Belgium with different international shipping lines, connecting the Port of Antwerp with Cape Town & Durban. South Africa has a direct airlink with Belgium thanks to a cargo line with Zaventem (Brussels) and the airport of Liege (TNT).
As a business, please listen to each of the relevant topics:
Flanders Investment and Trade provides a general overview of the Logistics market in Europe.
As a first step to expanding in Europe, different 3rd party logistics service providers provide an introduction on how to use these companies for product distribution.
A case study to optimize the supply chain is discussed by the data analytics firm Ahlers Data Analytics. The case study will explain how to optimize distribution in Europe.
Finally, optimizing your distribution from a tax perspective is discussed by the International Tax expert of the Ministry of Finance of Belgium.
The different events are free of charge and will take place in Covid Proof rooms.
Separate individual and confidential meetings with the speakers are organized before or after the events (in 30 minute slots). Please reserve your time slot when appropriate.
The events in Pretoria and Cape Town will include life streaming.
Details programmes are available on the links below:
Thursday, November 19
Cape Town, Western Cape: Cape Chamber of Commerce Seminar details
Tuesday, November 24
Port Elizabeth, Eastern Cape: Nelson Mandela Bay Business Chamber Seminar details
Thursday, November 26
Bloemfontein, Free State: Free State Chamber of Commerce & Industry Seminar details
Tuesday, December 1
Pretoria, Gauteng: Sakeliga Seminar details
Flanders Investment & Trade (FIT) is the economic development agency of the Northern, Dutch speaking region of Belgium. The agency promotes international enterprise in Flanders in a sustainable way as a key factor in the social and economic development of our region. FIT does so by supporting the international activities of Flemish companies and by attracting foreign investors to Flanders.
FIT assists Flanders based companies in international business. FIT offers also tailored advice and guidance. Companies can call on our networks of contacts both at home and abroad. FIT gives also financial support to Flanders based companies and provides information on a wide range of financial incentives to foreign companies interested in investing in the region.
Events Extraordinaire has been in the business of helping their mining and mineral clients execute some of the most prestigious events in the most remote areas of South Africa. Their dedicated team, lead by Clara Mdlalose, has been able to meet the needs of their clients and responded to some of the most challenging briefs because of their understanding of the rural mining communities they operate in.
Clara Mdlalose
“It all begins with a proper understanding of the brief from the mining client and working within the allocated budget for the event ensuring that we respond to Supply Inclusive Procurement by engaging and empowering local businesses in order to make a significant positive contribution to our host communities. Effective local procurement practices then contribute to job creation and skills development by lowering logistics costs and facilitates access to critical goods and services,” says Clara Mdlalose.
Over the years, the events industry, especially in the mining and minerals space, has been challenged to bring in more local players in the form of Historically Disadvantaged South African businesses. Events Extraordinaire sees this as an opportunity to create their niche.
We specialize in creating the overall event and focus on the Invitations, Response Handling and Onsite Accreditation, Event Site and Floor Plans, JOC Committee, Infrastructure, VIP Requirements and then outsourcing the rest of the event requirements to local suppliers, managing them and assisting in overseeing the implementation of these services by acting as Community Event Specialist Advisor whereby Extraordinaire becomes the Integrator in terms of quality assurance and successful delivery of all CSI mining and mineral events within the host communities.
In many instances, they have to empower the local suppliers through on-the-job coaching and mentoring to ensure excellent execution of projects.
With her tenacity and over 20 years’ experience in the events space the leader of Events Extraordinaire, Clara Mdlalose, has helped guide many a mining and mineral client into successful events execution. From working with Presidents, Ministers, MEC’s, Mayors, Counsellors, Board Members and General Managers to local community members, this team has been able to service them all with the right amount of decorum required by each.
With the new focus that is responsive to the needs of the clients, the future does look bright for Events Extraordinaire. The fact that the company is 100% female owned does not only bring value to the clients, but it ensures that a feminine touch based on caring shines through their work.
The company has indeed responded to the needs of the mining and minerals industry and their host communities, and they are destined for greatness.
Events Extraordinaire is a 100% BBBEE (Level 1) Women Owned and award-winning event design and production company specializing in CSI Event Project Management in the Mining and Minerals Industry. In an industry that has suffered a great deal due to Covid-19, they have reinvented themselves and emerged with even a stronger and relevant service offering to the industry.
Safety and People First and always adhering to all Covid-19 Events Safety Guidelines for the event management sector.
Kathu–Taung–Kroonstad–Johannesburg–Rustenburg–Northam–Thabazimbi–Mokopane–Polokwane–Tubatse–Burgersfort–Musina, all over South Africa, call us for your next mining event:
The opening of the BPO Academy at the College of Cape Town.
Today, 6 November 2020, saw the official opening of the BPO Academy at the College of Cape Town, Gardens Campus which will not only provide opportunities for young people to gain the necessary skills to graduate into an exciting career in the BPO sector, but importantly also ensures a talent pipeline for a fast-growing sector that is contributing significantly to job creation in Cape Town and the Western Cape.
The BPO Academy is also the first of its kind, in that it is a unique example of a learning and skills development initiative made possible through a partnership between both government and the private sector.
The initiative for the BPO Academy started with engagements between the Department of Economic Development and Tourism and the BPO sector which highlighted an increasing need for high quality BPO skills that would fulfill the demand of a fast-growing sector in Western Cape.
However, it is only as a result of a successful and committed partnership between government and private stakeholders that the opening of the BPO Academy today has been fully realised. These stakeholders include the Western Cape Government, City of Cape Town, Cape BPO and the public Technical, Vocational Education and Training (TVET) college, College of Cape Town.
It is this partnership that has resulted in close collaboration on the design of the curriculum offered at the BPO Academy to ensure graduates are workplace ready and have the relevant, high-quality skills that are endorsed by the Service SETA and required by the fast-growing BPO sector.
Initially focusing on voice skills, the curriculum at the BPO Academy will expand along the full BPO value chain of skills requirements including ICT, finance and accounting and other middle and back-office capabilities, offering young graduates that next step into a career in the BPO sector.
Welcoming guests to the event, CEO of the College of Cape Town, Louis van Niekerk, said: “The launch of the BPO Academy at the College of Cape Town Gardens campus is an important milestone for the college which seeks to improve responsiveness to industry workforce needs. We are very privileged to be a part of this, and grateful for the opportunity to add value to the BPO sector and create jobs, while growing the College of Cape Town.”
Confirming the City of Cape Town’s support for the BPO sector, Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos, said, “The City of Cape Town will be contributing R55-million over the next three years for jobs training and placement in call centre companies, which has led to the launch of the BPO academy today. I am happy to have worked closely with the Western Cape Government, Department of Trade, Industry and Competition and the NSF to ensure this project was approved by full council. That is why we fund CapeBPO, as a Strategic Business Partner (SBP), to grow the industry. I am immensely proud that this partnership has resulted in the addition of 2 633 additional jobs in the last three months alone, despite the Covid-19 lockdown measures.”
The BPO sector has been a great example of resilience and adaption, and despite the challenges of the Covid-19 pandemic has continued to contribute to job creation and economic growth in Cape Town and the Western Cape.
In fact, this year 5,000 additional jobs have been created in the BPO sector in Cape Town.
Commenting on the contribution of the BPO sector to job creation and the economy in the Western Cape, Western Cape Minister for Finance and Economic Opportunities, Minister David Maynier, said, “The BPO sector is an island of hope as it is one of only two sectors that created jobs in the Western Cape this year, and it plays an important role in creating opportunities for people and giving hope to people, especially young people, in Cape Town and the Western Cape. Which is why the BPO sector is one of the key sectors that we are showcasing as we present a common message to the world: that both Cape Town and the Western Cape province are open for business. I have no doubt that our investment in this sector will continue to pay dividends for years to come.”
The launch of the BPO Academy and the investments made over the medium-term are a clear indication of the support by both government and the private sector for the BPO sector which continues to play a significant role in job creation and economic growth in Cape Town and the Western Cape.
Thanking all the stakeholders involved, CEO of CapeBPO, Gareth Pritchard, said: “The launch of the BPO Academy today is the culmination of 10 years of hard work to establish a vibrant BPO sector in the Cape. The academy will not only accelerate the growth of talent to support the sector, it will also accelerate the interest of overseas investors considering bringing their business to our shores. What differentiates the Cape is the unique public/private sector partnerships which enables initiatives like this to be implemented.”
A unique guide to business and investment in Limpopo Province
The 2020/21 edition of Limpopo Business is the 12th issue of this essential publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province.
Limpopo has been attracting significant investments in the mining sector in recent years and the green light for the creation of the Musina-Makhado Special Economic Zone in the province’s far north has attracted several billion dollars. A metallurgical and energy cluster will inaugurate the SEZ, after which investments in agri-processing, logistics and manufacturing are expected to follow.
In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on transport and logistics,and specific plans that are in place to promote manufacturing in Limpopo.
News related to mining, agriculture, tourism, construction and property, water, education and development finance is carried in overviews of the main economic sectors.
A unique guide to business and investment in North West Province
The 2020/21 edition of North West Business marks the 10th publication of this essential publication that, since its launch in 2009, has established itself as the premier business and investment guide for the North West Province.
North West Business includes news and analysis of the most important sectors, with a regional overview covering the strategic thinking behind plans to attract investment into the province.
Best known for its platinum mines, grain and livestock farming and tourism, the province is making a concerted effort to bolster its manufacturing capacity.
Corridor development, agri-parks and the creation of a Special Economic Zone are among the economic stimulus plans covered in this edition.
A unique guide to business and investment in Mpumalanga Province
The 2020/21 edition of Mpumalanga Business is the 11th issue of this essential publication that since its launch in 2008 has established itself as the premier business and investment guide for the province.
Updated overviews of each of the key economic sectors of the province are included, with references to the latest investments by companies across multiple sectors.
These include Sappi, Sasol and Sonae Arauco, which is expanding its White River factory. Afrimat is considering investment in the mining sector, while Exxaro Resources, South32 and Pan African Resources are among the mining companies spending on extending the life of existing mines.
A useful article on what incentives are available to investors from various departments and agencies is provided. Mpumalanga has several investment and business opportunities in a wide range of sectors.
The new brand which positions Cape Town as “Africa’s Tech Capital” affirms the Western Cape’s status as leader of the African tech ecosystem thanks to the many tech and digital businesses based primarily in Cape Town and the Stellenbosch region. In addition it seeks to clearly represent the values, skills, talent, innovation and lifestyle offered by the tech ecosystem of Cape Town and the Western Cape.
More specifically, the tech ecosystem in the province offers:
A diverse community of companies across the technology supply chain;
A strong presence of supporting institutions that provide for ease of business;
Over 22 active incubators and accelerators in the region which play a vital role in providing business and tech support, mentoring and networking opportunities, and links to markets and funders;
More than 25 co-working spaces where innovation and creativity are fostered;
A skilled workforce, affordable operational and residential costs, excellent IT infrastructure and a great lifestyle;
Four leading higher educational institutions, namely the University of Cape Town, Stellenbosch University, CPUT and the University of the Western Cape, as well as six TVETs in the province that contribute to the skills base.
The tech sector has also played an important role in helping businesses pivot and adapt during the Covid-19 pandemic, with many rapidly transitioning to new ways of working and a significant amount of the workforce working from home. This has resulted in a rapid adoption of digital technologies, which only strengthens our offering to international investors.
The digital economy is one of the Western Cape’s competitive advantages, attracting investment into the province, growing our outward trade through the export of our digital products and capabilities, enhancing the productivity and competitiveness of local companies through the uptake and adoption of digital technologies, and also providing tech career opportunities among young people.
Revealing the new brand logo to attendees at the launch event today, Premier Alan Winde said: “We are excited to proudly declare Cape Town and the Western Cape as ‘Africa’s Tech Capital’. The Covid-19 pandemic has shown us just how important this new digital economy is and it bodes well for our province’s recovery plan that we are the leading in this space. I want to thank our Department of Economic Development and Tourism for their hard-work on this pioneering project. And I also want to thank all those innovative start-ups for your role in developing our amazing tech ecosystem.”
Premier Alan Winde at the launch event for the new brand positioning.
The initiative started with the Digital Economy unit at the Department of Economic Development and Tourism, however the final product launched today is as a result of the hard work and collaboration between the Western Cape Government, City of Cape Town, Wesgro, and major tech eco-system enablers including: CiTi, Silicon Cape, LaunchLab and Startup Bootcamp.
Welcoming the launch of the new brand positioning, Western Cape Minister of Finance and Economic Opportunities, David Maynier said, “The launch of this new brand couldn’t happen at a better time as we re-open our economy and begin rebuilding so we can save jobs in the Western Cape. Key to our economic recovery are the partnerships between government and the private sector. And this new brand, which is a confidence boost to the sector, is a great example of a successful partnership between government and the private sector.”
We are inviting everyone within the Western Cape to be part of building the profile of Cape Town as Africa’s Tech Capital – register here to receive the logo and brand assets.
Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos, added, “With an internet take-up of 63% and with one of the largest open-access fibre networks in Africa, Cape Town is home to the vast majority (almost 60%) of South Africa’s start-ups. The City funded Cape Innovation and Technology Initiative (CiTi) is Africa’s oldest tech incubator and has turned out more than 2,000 businesses and supported more than 3,000 entrepreneurs since its inception in 1999. In response to this growing industry, the City of Cape Town is continuing to invest in IT infrastructure, and to date, the City has installed 848 km of fibre-optic cable. As a City, we will continue to support and invest in high growth sectors that will create jobs for our residents. This is a caring city, but more so, Cape Town is an opportunity city and we are open for business.”
Concluding the launch event, Wesgro CEO, Tim Harris, said, “We need to affirm our status as leader of the African tech ecosystem, and declare this on the international stage. We have the overwhelming evidence that Cape Town is Africa’s leading tech capital. Now, we need to jointly tell the world!”
A vessel similar to the vessels DNG Energy will be using at Coega. (Supplied: DNG Energy)
DNG Energy has received final authorisation from the Transnet National Port Authority (TNPA) to begin Liquefied Natural Gas (LNG) bunkering operations in the Port of Coega (Ngqura), in the Eastern Cape, South Africa.
Aldworth Mbalati, the Group Chief Executive Officer of DNG Energy says, “This is a positive outcome for DNG Energy and South Africa. Our country is poised to become a premium LNG bunkering hub in the Southern Hemisphere. The licence enables us to respond to environmental, legislative and business needs for the South African and the international LNG fuel markets. We are happy to be part of the solution in the quest to decarbonise the shipping industry by offering LNG as a transition fuel that is safer for marine species.”
Aldworth Mbalati, Group Chief Executive Officer of DNG Energy
The licence gives DNG Energy rights to have its terminal, the floating storage unit (FSU) in Algoa Bay, which is a first in Africa. This will enable the company to offer off-shore as well as on-shore logistics with ship-to-ship transfers for international trading ships as well as LNG “milk runs” within the country.
The impact of this project stretches from securing energy for various industries and households as well as creating jobs and developing skills in the country.
“We are positive about the future of South Africa, and supplying the cheapest possible gas that we can find to power the economy is our contribution towards achieving socio-economic aspirations of the country in a responsible manner. The licence opens up a way for us to deliver LNG in South Africa as early as 2021.
“The next steps include completing our terminal infrastructure at Algoa Bay and finalising delivery of our storage and bunkering equipment. We are poised to be the gas solutions provider for local and international markets by adding value in the gas value chain,” adds Mbalati.
Digitisation and technological innovation are nothing new to the South African banking industry, but those banks that had made significant progress on their digital journeys before the Covid-19 pandemic, have been best placed to meet the fast-changing needs of their clients and, as is the case with Nedbank, gain efficiencies and grow market share in the process.
According to Ciko Thomas, Group Managing Executive for Nedbank Retail and Business Banking, the progress that the bank made on its digital transformation journey in the years leading up to 2020, equipped it with the technology infrastructure, world-class banking platforms and processes, and agility to move quickly when its clients most needed it to earlier this year.
As a result, the bank has seen some impressive gains, not only in the digital migration of its existing clients, but also in its ability to attract and efficiently onboard new clients – despite remote working and social distancing challenges.
“Over the past few years, Nedbank has invested into the development of a true omni-channel banking experience for our clients, including our ground-breaking Eclipse single-client-view onboarding and servicing system, various platform-based banking ecosystems, and our industry leading Open Banking (API) platform,” Thomas explains, “and while we had no idea at the time we were developing these systems that they would be so absolutely vital to our customers in 2020, they have given us the ability to actually enhance our solutions and service delivery for the benefit of our clients during these difficult months.”
And the statistics Thomas shares around Nedbank’s increasing digital uptake, enhanced client servicing, and year-on-year market share growth certainly bear out his claims. For example, the bank’s digital sales increased to 53% in the first half of 2020 from 9% in 2018.
The bank has also prioritised its turnaround times for credit application approvals and funds disbursals. Thomas points out that this focus on credit provision speed and efficiency has been facilitated by means of a highly efficient straight-through processing system, involving a single digital application form that is pre-populated for existing Nedbank clients, cutting-edge automated credit assessment processes, and very fast approval-to-payment processing times.
The bank’s digital sales increased to 53% in the first half of 2020 from 9% in 2018
“We have significantly increased the number of same-day funds disbursals on successful personal loans applications, from 40% last year to 65% currently,’ he says, ‘and our clients appreciate the speed with which these funds are now made available in their bank accounts during Covid-19 and the national lockdown.”
Our more efficient digital credit process has resulted in the Net Promoter Score for this key touchpoint in the client onboarding journey increasing from 70% to above 80% since the bank rolled out its Eclipse digital platform ecosystem to its branch network.
“In June this year, we effectively switched off all our legacy systems, so all our new business is now being originated through our digital Eclipse platform,” Thomas says, ‘and this convenient, digitally enabled sales ecosystem has significantly enhanced the levels of ease and convenience enjoyed by our clients, both in terms of joining the bank and quickly accessing the finance solutions they need through a vast array of digital channels.”
Ciko Thomas, Group Managing Executive for Nedbank Retail and Business Banking
By way of example, Thomas points out that a client of Nedbank in need of extra money, can apply for a personal loan in minutes online and have the funds available to them within 90 minutes.
And the benefits of Nedbank’s extensive investment into digitisation don’t end with finance application and disbursement. The highly integrated, true omni-channel Nedbank system makes accessing, transferring, managing and even investing funds quick, easy and secure.
“Of course, while we are immensely pleased with the steady growth in clients and product uptake that we are seeing as a result of our digital focus, sales are not the main reason we have invested so massively into digitisation in recent years,” Thomas says, “we have long been committed to providing outstanding services and a range of innovative solutions that are, quite literally, life changing for South Africans – and the very positive business data we’re seeing as a result of our digital-first commitment is evidence that we are succeeding in delivering on that promise.”
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This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy.
Initially focusing on voice skills, the curriculum at the BPO Academy will expand along the full BPO value chain of skills requirements including ICT, finance and accounting and other middle and back-office capabilities, offering young graduates that next step into a career in the BPO sector.
“Over the past few years, Nedbank has invested into the development of a true omni-channel banking experience for our clients, including our ground-breaking Eclipse single-client-view onboarding and servicing system, various platform-based banking ecosystems, and our industry leading Open Banking (API) platform,” Thomas explains, “and while we had no idea at the time we were developing these systems that they would be so absolutely vital to our customers in 2020, they have given us the ability to actually enhance our solutions and service delivery for the benefit of our clients during these difficult months.”
