Home to South Africa’s premier multi-cargo port, King Shaka International Airport, Dube TradePort SEZ and the N3 highway – it’s no wonder Durban, is considered South Africa’s industrial hub, with key infrastructure in place to support the country’s trade and export activity.
Given the opportunities this strategic location presents to traders, logistics operators and infrastructure in KwaZulu-Natal, we’re thrilled to announce eThekwini Municipality has partnered with KZN Construction Expo as Official Host City to the 2021 KZN Construction Expo.
Taking place on 21 – 22 September at the Durban ICC, in South Africa – KZN Construction Expo will be co-located with Transport Evolution Africa, Export Evolution Africa and Drone Con – giving exhibiting companies access to meet influential role-players from across the infrastructure, construction and transport value chains under one roof.
On the evening of 21 September, exhibitors are invited to join Mayor Cllr Mxolisi Kaunda and the eThekwini Municipality team at the Mayoral Networking Function, providing the perfect opportunity to discuss, meet and network with key stakeholders responsible for driving the municipality’s multiple infrastructure projects.
To become one of these exhibitors and do business with eThekwini Municipality and other key stakeholders in the region, go to: https://www.kznconstructionexpo.com/ for contact info or to register.
Rich agricultural soil supports the intensive cultivation of sugarcane in the iLembe District Municipality, located north of Durban in KwaZulu-Natal. Credit: Enterprise iLembe.
KwaZulu-Natal is South Africa’s major sugar-producing province. A start has been made on tackling the many challenges faced by the sugar industry: In 2020 the Sugarcane Value Chain Master Plan 2030 was signed by two national government ministers and various sector participants. Among the steps to be taken include diversifying revenue streams and an agreement by users and retailers to buy more South African sugar. Imports have a devastating impact on the local industry.
Two mills have recently closed, the Umzimkulu mill run by Illovo Sugar and Tongaat Hulett’s Darnall mill. With a good crop expected in 2020/21, this will put additional pressure on the country’s remaining 12 mills.
An important part of the transformation of the sugar industry involves supporting small-scale farmers. Of the 10 443 farmers who supply Tongaat Hulett, 94% are small-scale farmers. The Illovo Small-Scale Grower Cane Development Project used 119 local contractors to develop the fields of 1 630 new growers on 3 000 ha. Production sent to the company’s Sezela factory more than doubled and income for the growers is expected to be about R64-million annually. National Treasury and the SA Canegrowers were partners in the project.
SA Canegrowers represents 23 866 growers and is responsible for the production of 18.9-million cane tons. A 2019 project, in which five commercial sugarcane farmers donated 10 tons each of seedcane to five small-scale farmers has been a success. Lilian Dube (pictured below), was one of the recipients in the Amatikulu region and she has prospered with the addition of sugarcane to the variety of crops on her farm.
Neither of the Big Two companies relies exclusively on South African sugar earnings: Tongaat Hulett has a big property portfolio and Illovo draws most of its profit from operations elsewhere in Africa. Diversification is vital for the future of sugar producers and power generation will be an important part of that.
The Sugar Terminal at Maydon Wharf, Durban, serves 11 mills and can store more than half-a-million tons of sugar. It also has a molasses mixing plant.
Amatikulu small-scale farmer Lilian Dube and SA Canegrowers’ Area Manager Sinenhlanhla Njoko admire Dube’s seedcane plot. The seed was donated by commercial growers in the northern region. Credit: SA Canegrowers.
Agricultural assets in KwaZulu-Natal
Of KwaZulu-Natal’s 6.5-million hectares of agricultural land, 18% is arable and the balance is suitable for the rearing of livestock. The province’s forests occur mostly in the southern and northern edges of the province.
The coastal areas lend themselves to sugar production and fruit, with subtropical fruits doing particularly well in the north. KwaZulu-Natal produces 7% of South Africa’s citrus fruit. The Coastal Farmers Co-operative represents 1 400 farmers.
TWK is a R6-billion operation that originated in forestry (as Transvaal Wattlegrowers Co-operative) but which is now a diverse agricultural company with seven operating divisions. It has 19 trade outlets in the province and 21 in Swaziland and Mpumalanga.
Beef originates mainly in the Highveld and Midlands areas, with dairy production being undertaken in the Midlands and south. The province produces 18% of South Africa’s milk.
KwaZulu-Natal’s subsistence farmers hold 1.5-million cattle, which represents 55% of the provincial beef herd, and their goat herds account for 74% of the province’s stock. The Midlands is also home to some of the country’s finest racehorse stud farms. The area around Camperdown is one of the country’s most important areas for pig farming. Vegetables grow well in most areas, and some maize is grown in the north-west. Nuts such as pecan and macadamia thrive.
KwaZulu-Natal has two colleges offering higher qualifications in agriculture, Cedara in the Midlands and the Owen Sitole College of Agriculture near Empangeni.
Agro-processing hub
Enterprise iLembe is the development arm of the iLembe District Municipality and is looking for investors to further develop an agro-processing hub near the King Shaka International Airport and Dube TradePort SEZ.
So-called superfoods have potential to grow the agricultural sector via greatly increased exports: these include avocados, pecans and dates. Another possibility is macadamia nuts (already a thriving sector in other parts of the country) and in new areas such as the farming of rabbits.
Among the new lines of agricultural produce being investigated is cannabis. The provincial government initiated a feasibility study to identify opportunities in the production of cannabis and downstream beneficiation. A Cannabis Investor Protocol has been developed and a dedicated Cannabis Unit has been established within the Moses Kotane Institute to assist emerging cultivators and entrepreneurs with infrastructure assistance, funding and licensing.
Another initiative of the Department of Agriculture and Rural Development (DARD) is to promote the commercialisation of goat farming. In 2020/21, DARD assisted farmers to plant 10 658ha for food security and R30-million has been set aside for the establishment of five large nurseries to produce seedlings and fruit trees. The programme will employ 290 agricultural graduates.
The National Department of Rural Development and Land Reform (DRDLR) has launched an Agri-parks programme to support small-scale farmers and to boost other businesses related to agriculture such as abattoirs and transport operators. KwaZulu-Natal is one of four provinces where pilot projects have been carried out. The plan is to have an Agri-park in each of South Africa’s 44 district municipalities with farmers owning at least 70% of the venture.
There are three components to the fully realised Agri-park concept:
Farmer Production Support Unit: links farmer with markets, collection and short-term storage, local processing and the introduction of mechanisation.
Agri-hub: equipment-hire, processing, packaging, logistics and training.
Rural Urban Market Centre: contract-based links to local and international markets, long-term storage and market intelligence.
In KwaZulu-Natal sugar is like gold. Large-scale sugar production has always played an important role in KwaZulu-Natal’s history and the sugar industry is a significant part of South Africa’s economy given its agricultural and industrial investment and significance as a foreign exchange earner.
A R16-billion industry, it is a large employer with 85 000 direct jobs and an estimated 350 000 jobs indirectly attributable to sugar production. KwaZulu-Natal is responsible for nearly 80% of the country’s sugar production, with 20 000 growers producing 1.68-million tons of sugar annually.
Standard Bank provides banking services and finance to the entire value chain of this vital industry, from input suppliers such as co-operatives and chemical companies to contractors and transporters, as well as specialist services and the growers and millers.
We consider all types of agricultural finance, from tailor-made long-term products for purchases of fixtures and property, mid-term asset finance as well as looking after short-term working capital needs for operational costs and seasonal expenses. Transactional banking, hire purchase, credit and fleet management are also vital for cane hauliers.
Agribusiness offering
While many sectors in South Africa struggled in 2020 because of Covid-19 restrictions, agriculture enjoyed a strong year. According to Statistics South Africa the agriculture, forestry and fisheries sector’s Q3 2020 seasonally adjusted and annualised growth rate was 18.5% and was valued at R79.4-billion.
While agriculture remains the biggest contributor to South Africa’s GDP, it is easy to forget its importance and the impact it has on our lives – producing crops that are crucial to our country’s growth.
That’s why Standard Bank is committed to providing farmers with a full banking suite. Agriculture is a specialised sector with more than 30 sub-industries, and a vast field of knowledge is required to understand each subsector and how each of these industries’ cycles are integrated.
With 35 in-field agents located in all provinces who are experts in those specific geographical areas, we are able to assist with cash flow and financial planning.
Standard Bank continues to prioritise providing a world-class service, knowledge and expertise. We believe that when a farmer wins, we all win.
The Port of Durban handles containers, automotive imports and exports, break-bulk and agricultural commodities (Credit: TNPA)
A new era in trade and export has begun and the traders, logistics operators and ports of KwaZulu-Natal are in pole position to take up new opportunities. Not only is the province strategically located on the Indian Ocean but it already has excellent infrastructure which is being upgraded and improved.
The official date for the new era was 1 January 2021 for that date marked the launch of the African Continental Free Trade Area (AfCFTA). All but one of Africa’s 54 countries have signed the agreement and a majority of countries have ratified it. Implementation was postponed for six months because of Covid-19.
Tariffs on 90% of items are due to be reduced in the next decade although more time has been allocated to poorer countries to allow them time to adapt.
The African market of 1.3-billion people is expected to grow to 2.5-billion by 2050 but the key statistic targeted by AfCFTA is intra-African trade. Exports to the rest of the world made up between 80% and 90% of Africa’s total trade from 2000 to 2017 (UNCTAD). In 2019 about 27% of South Africa’s exports were delivered to the rest of the continent.
As part of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), South Africa is already part of the most active regional bodies which are promoting integration and intra-regional trade. These regional groupings are best placed to start thinking beyond tariffs: more efficient customs posts, lower air-freight costs, better-run ports, regulatory alignment and improved rail and road infrastructure.
Even before AfCFTA was signed, one of the largest independent wire manufacturers in the country, Hendok Group, set about steadily increasing its exports to other African countries. With more than 1 000 employees at the factory in the Phoenix Industrial Park in Durban, the company makes a number of types of wires and is the country’s biggest producer of nails.
Donald Trump’s interests did not stretch to Africa during his presidency of the US but he preferred bilateral, rather than regional agreements so it is surprising that the African Growth and Opportunity Act (AGOA) survived the Trump years. The deal, which gives duty-free access to about 6 500 products from 39 Sub-Saharan countries, is due to expire in 2025.
As much as African countries’ trade within the continent will grow, exports will remain key to adding value and attracting good prices. Trade between the US and Africa in 2018 was valued at $41.2-billion.
Awards and China
Opening up new markets is a priority for local business leaders. The Durban Chamber of Commerce and Industry partners with Transnet Port Terminals (TPT) in hosting the annual KwaZulu-Natal (KZN) Exporter of the Year Awards. At the 2019 ceremony, Durban Chamber Deputy President Gladwin Malishe said, “With the global economy in a state of flux and several developed economies becoming more protectionist, KwaZulu-Natal and our emerging exporters need to scout for non-traditional points of entry into the global market, which are more open and have more liberal trade policies and procedures such as China. This is an ideal time to visit a growth market like China if you have export aspirations, hence the theme for our event being Shanghai Nights.”
The award winners on that occasion offer a good sample of the strength and variety of the provincial economy. Winners included Imperial Armour (body armour), Sappi (forestry and paper), Sumitomo Rubber (tyres) and the Mediterranean Shipping Company. Finalists came from sectors as diverse as engineering, condiment-making and boat-building.
Approximately 220 TEU equivalent containers (20-foot containers) of Sappi products pass through the Port of Durban every day.
At the awards evening, the Emerging Exporters Development Programme was launched, a joint initiative by TPT and the Durban Chamber to develop emerging exporters. The first beneficiaries were Get2Natural Beauty; Gugu Mobile Boutique; Samac Engineering Solutions; Siyazenzela Trailers & Truck Bodies and Zikhe.
The award for small and medium exports (a new category) was sponsored by the Small Enterprise Development Agency (Seda KZN).
One of the event sponsors, Trade & Investment KwaZulu-Natal (TIKZN), is an agency dedicated to promoting the province as an investment destination and to facilitating trade by helping local companies to gain access to international markets.
In 2020, 103 export opportunities were created with 20 companies enrolling for the exporter competitiveness programme. This initiative sustained 1 605 jobs, according to the Provincial Government of KwaZulu-Natal.
Another awards ceremony, organised by the South African Capital Equipment Export Council (SACEEC) and Specialised Exhibitions Montgomery as part of the Southern African Local Manufacturing Expo, saw Bell Equipment win the “Exporter of the Year” in the large category (over R200-million turnover). Exports to more than 80 countries make up about 40% of the company’s turnover and local content of those exports is at 70%. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors.
Infrastructure
With two of Africa’s biggest ports in Durban and Richards Bay and the King Shaka International Airport and associated Dube TradePort SEZ, KwaZulu-Natal has superb infrastructure to support trade and export activity. The N3 highway linking Durban with the Highveld and the industrial hub of South Africa is the country’s busiest road.
Durban harbour is South Africa’s premier multi-cargo port and is Africa’s busiest, handling in excess of 80-million tons of cargo per annum (StatsSA). The Port of Durban is a key hub in the transport and logistics chain, with 60% of all imports and exports passing through it.
The Port of Durban exports a broad range of products, including automotive vehicles. In 2018/19, the year in which South Africa’s total vehicle exports topped 350 000, Durban’s Car Terminal boasted a record of putting more than 500 000 fully-built-up units (FBUs) through the port. The figure includes FBUs that are not motor vehicles and includes vehicle imports. Toyota’s popular Fortuner is exported at a rate of about 150 per month.
All aspects of the port are expanding or being upgraded. Within the Port of Durban there are a number of specialised facilities. Several projects are underway to increase capacity. Transnet National Ports Authority (TNPA) and Transnet Port Terminals (TPT) are combining to upgrade infrastructure and buy new equipment to improve efficiencies at the Ro-Ro terminal (vehicles and break bulk) and Maydon Wharf (mixed cargo and agriculture) but the biggest project is at the Durban Container Terminal (DCT).
DCT has a capacity of 3.6-million TEUs (twenty-foot equivalent unit) and the current project aims to extend that beyond five-million TEUs. The Brics New Development Bank has approved a loan of $200-million for the DCT expansion project.
TNPA states that the multiplier effect in the marine sector creates five jobs for every direct job. A large drydock project created direct jobs for 29 skilled employees.
The Port of Richards Bay, 160 km to the north-east of Durban and 465 km south of the Mozambican capital of Maputo, handles more than 80-million tons of bulk cargo every year. Richards Bay is a deepwater port. Among its 13 berths are terminals that handle dry-bulk ores, minerals and break-bulk cargo.
The Richards Bay Coal Terminal (RBCT), with capacity of 91-million tons per year, is South Africa’s primary portal for the export of coal. In 2020, 65 collieries delivered coal to RBCT. The quay of the RBCT is 2.2 km long with six berths and four ship-loaders. The 276 ha site contains a stockyard that can store 8.2-million tons while the terminal itself has a design capacity of 91-million tons per year. More than 900 ships visit RBCT every year.
Richards Bay is the site of South Africa’s largest coal export terminal. (Photo credit: TNPA)
In 2020, 92% of South African coal went to Asia, with India and Pakistan being the biggest importers. Africa imported less than the previous year and made up a total of 5% of volumes while 3% went to Europe.
Among the exporters which use RBCT are Anglo Operations, ARM Coal, Exxaro Coal, Glencore Operations South Africa, Kangra Coal, Koornfontein Mines, Mbokodo, Optimum Coal Terminal, Sasol Mining, South African Coal Mine Holdings, South Dunes Coal Terminal, South32 Coal Holdings (which is selling to Seriti), Tumelo Coal Mines and Umcebo Mining. Several junior miners also have rights.
TNPA has approved in principle the construction of a floating dock near the existing Small Craft quay. TNPA will have to create new onshore infrastructure and do some dredging before it can call for tenders from the private sector to build the dock, which would be able to handle large and ultra-large cargo vessels.
The authority that runs the ports at Durban and Richards Bay, TNPA, and Transnet Freight Rail (TFR) have been working with the private sector to try to improve efficiencies at both ports. Backlogs at Durban in particular have proved frustrating for exporters. Logistics company OneLogix has opened its own distribution hub in Umlaas because of crowded conditions and slow loading.
The other entity involved in the loading and unloading equation, TPT, is investing R2-billion in new equipment to improve coordination between truckers, tax authorities, port staff and ship’s captains.
Dube TradePort has facilities devoted to logistics, warehousing and export support. Proximity to the airport is vital and freight volumes are growing.
Financing
Four countries currently account for 41.7% of intra-African trade, according to the Export Credit Insurance Corporation of South Africa (ECIC). The ECIC has invested in the African Export Import Bank to boost intra-continental trade to $250-billion. The South Africa-Africa Trade and Investment Promotion Programme has the same goal.
The ECIC provides export credit and investment guarantees, stepping in where commercial banks might be risk-averse to support private investment.
Standard Bank has launched a product to assist African importers in evaluating and choosing Chinese suppliers. Faced with daunting variety, language and cultural differences, the prospect of having to pay cash upfront to unseen suppliers or limiting supply choices to a small group of previously used suppliers, African importers can use the Africa China Agent Proposition (ACAP) to validate quality while having sight of the logistics process. Standard Bank is using its partnership with shareholder the Industrial and Commercial Bank of China (ICBC) to create the ACAP, which puts importers in touch with agents and is underpinned by a letter of credit. Standard Bank is Africa’s biggest bank and ICBC is the world’s biggest bank.
In preparation for AfCFTA, development finance institutions and banks have been developing methods of trading in local currencies, rather than hard currencies like the US dollar. The African Virtual Trade-Diplomacy Platform (AVDP) is a private-sector initiative by more than 20 companies (in partnership with the AU Commission) which will support the AfCFTA by enabling member states to participate effectively and securely.
Banking groups such as Citi have been investing heavily in digital platforms related to payments infrastructure. Many African traders already do their banking on hand-held devices and so the market is ready for more innovation in taking digital payments further into the world of trade.
Developing reliable cross-border payment platforms will be vital in supporting increased intra-African trade.
The European Investment Bank is the investment arm of the European Union and often partners with African institutions.
China has a wide range of financial entities which are active across a range of sectors in Africa. These entities include the China Development Bank (CDB), the China International Trade and Investment Corporation (CITIC), China Export and Credit Insurance Corporation (CECIC), China Export Credit Insurance Corporation (Sinosure) and the China Export-Import Bank.
Something that we all have to do is make decisions and solve problems. Every day, we have a multitude of decisions to make. Some big, like buying a house or changing jobs, and others more mundane like what to make for dinner or what movie to watch. All of these decisions involve taking into account and managing variables.
Human beings are pretty good at solving problems and making decisions when dealing with a finite number of variables that are connected in predictable and familiar ways. For example, most of us know how to improvise with the ingredients available in our fridge or problem-solve when our computer doesn’t switch on.
Life gets a bit more complicated when we have to make decisions that involve dynamic and interconnected variables. For example, when we need to decide to change jobs, we need to consider finances, location and commute time, career growth opportunities, fitting into a new culture. Up to now, we were mainly able to make these decisions, even if we found them stressful.
In recent times, however, this has changed. Now we often find ourselves paralysed when needing to make decisions that seemed straightforward in the past. The world has become increasingly interconnected, and this has brought increased complexity and unpredictability. In today’s world, variables are dynamic and entangled in unexpected and unknowable ways. There are too many variables to keep track of or plan for, and there are many unknown or even unknowable unknowns.
Two years ago, no one knew that a then-unknown variable called Covid-19 would disrupt the entire world and fundamentally change our lives. Centuries ago, such a virus’s impact would have been more localised, and propagation would be slower. It took less than six months for the entire world to be impacted in today’s globally interconnected world. Now we collectively face a highly dynamic variable, a virus that keeps mutating (as viruses do). Not only have we become more aware that there are critical variables that we are unaware of in our web of interconnections, but also that our contexts are inherently volatile and uncertain and therefore unpredictable.
We are not used to being in such complexity and perpetual uncertainty.
For many, having to make decisions in this context is creating much anxiety. Especially in business contexts, decision-makers face dwindling revenues, anxious employees needing to cope with remote working and job insecurity, evolving business models, volatile markets, and increasing socio-political instability.
More than ever, it has become critical to develop a new kind of fitness to retain our ability to think clearly and respond appropriately while feeling fear and anxiety.
“Therefore, my sense is that those things which shift our nervous system from the sympathetic (fight or flight cortisol system) into the parasympathetic (connection, creativity, and play dopamine-led system) are those that help us thrive in Complexity. This would make nervous-system management a central complexity leadership skill. We need to first learn how to recognize when we are operating from our sympathetic nervous system and then learn to shift out of it.” – Jennifer Garvey-Berger
Meta-skills for complexity fitness
Complex adaptive systems are inherently uncertain, and while it may seem overwhelming at times, we do intuitively know how to navigate this Complexity. Families, cities, traffic – these are all complex systems. The problem is we tend to forget those skills in the workplace. Our decisions have much higher stakes in a world facing a pandemic, social unrest, and potentially existential threats like climate change.
In such a high-stakes, volatile context, we need a strong inner core, just like a surfer needs strong core muscles to be able to ride big waves. Over the years in our work with clients, we have found four meta-skills that help build this strong core for complexity fitness.
Courage – to face the unknown requires courage. We need to feel the anxiety and move towards the unknown despite it.
Openness – Complexity requires continuous learning and adaptation. We need to be open to unlearning and learning; we need to engage with curiosity, not rigidity, to diverse perspectives and difference.
Observation – Complexity requires situational, self, and other awareness. It requires us to observe patterns in our context from multiple perspectives, to zoom into the micro and out to the macro. It also requires observing and noticing our own internal responses to this context, again with curiosity, not judgment.
Lightness – Complexity, and emergence imply perpetual novelty. We can see this as an adventure and continuous discovery or as something that provokes anxiety. Being on the edge of not knowing means we will fail; it also means we need to reconnect to our childhood skills of imagination and playfulness. We need to hold our plans, our views, and our egos lightly.
“When the playful me shows up, I am ready to be a serious learner … a culture of playfulness I closely related to the capacity to learn.” – Rosemary Sutcliff
When it comes to payment options, e-commerce users in Southern Africa have been massively constrained for most of the retail category’s history. Those fortunate enough to have credit or debit cards and access to a PC, still face cumbersome payments, with 3D secure and bank authorisations required to prevent online fraud.
The only other safe option is to use an electronic funds transfer (EFT). The trouble with that is that it’s slow and expensive. In a bid to get around the latter issue and open up e-commerce markets, a number of fintech companies have exploited gaps in the rules to create a workaround. It’s called screen scraping – and it’s dangerous.
Screen scraping involves third-party companies accessing consumer bank accounts by offering a portal that mirrors the bank’s online banking interface and feels like a typical online banking login page. The customer unwittingly enters their banking information, which is then captured and stored by the third-party fintech company. As a result, the third-party can log in to the customer’s account as if it were the customer, and the bank is unable to detect the difference.
Not Open Banking
In a bid to defend this practice, the companies behind it claim that it is analogous to Open Banking, the system of allowing access and control of consumer banking and financial accounts through third-party applications. But this is a false equivalency. European Open Banking laws were designed to improve efficiency, empower consumers, and level the playing field in payments by allowing customers to decide who can have access to their accounts for payment authorisation in a safe and secure manner. Additionally, the third parties who make use of these open banking provisions are well regulated and work directly with banks and financial institutions to access customer accounts in a more secure and faster way.
In South Africa, screen scrapers ignore the rules and operate under the radar. The consumer assumes that the payment is safe, secure and regulated, but it is not. And as much as the screen scraping companies might insist that they keep customer information safe, they cannot guarantee that is the case. Also, because the service is not approved by or aligned with the bank if the bank changes its web portal, the screen scrapers have to quickly catch the change to avoid transaction fails. This is to say nothing about the excessive fees charged for the ‘convenience’.
At the same time, as e-commerce becomes increasingly important to the Southern African retail space, it’s pivotal that outlets do everything they can to steer clear of fraud risk. But most attempts to reduce fraud come up against providing a good customer payment experience. For example, current card-based services, especially from an e-commerce perspective, require interactions that slow the transaction process down and increase costs and points of failure in transaction processing. The costs and limitations of card-based payments place a burden on retail and limit who can have a card and who can accept card payments.
A different approach
So, how do retailers provide a great e-commerce experience while keeping customers safe? What’s needed is a mobile, contactless, secure, cost-effective payments service that is instant. In order for that to happen, counties must eventually embrace true Open Banking. Additionally, the banking industry must develop secure control systems and protocols that require third-party providers to be identified and authenticated by banks as they access customer data. At a minimum, consumers should be warned about the risk they carry.
At the same time, payment regulations should be reviewed to ensure that legacy rules and constructs do not stifle innovation. Instead, they should encourage innovative new payments services that provide for data security and good practice. If banks wish to enter into agreements with secure account rail-based payments, regulation should not get in the way but rather promote secure alternatives for participating qualified financial institutions and payment service providers. But rather than siloed bespoke QR payments, the industry needs to embrace an open loop domestic account rail scheme instead of a domestic card scheme. We have an opportunity to embrace the future and not entrench the legacy technology.
As risky as screen scraping can be, it’s important to realise that it is a response to demand first realised in Europe. More specifically, it was able to copy and import an unsound foreign practice because monetary authorities and industry bodies in the region have not yet provided an alternative to card scheme-based services. If they instead provided a low-fee, instant, secure, anonymous, non-card-based token service on the account rails as an alternative, the threat of screen scraping would dissipate significantly, and e-commerce could make significant strides forward and include the majority of consumers.
The anchor investor of the Namakwa SEZ in the Northern Cape is Vedanta Zinc International which is already running the Gamsberg Zinc Mine and intends to build a smelter. (Photo: Kevin Wright/Vedanta Zinc International)
Namakwa Special Economic Zone (SEZ)
The Northern Cape Department of Economic Development and Tourism, in conjunction with the national Department of Trade and Industry (the dti), is in the process of finalising submission documents for the declaration of a Namakwa Special Economic Zone.
The planned Namakwa Special Economic Zone to be established in the Aggeneys region of the Namakwa District of the Northern Cape Province will have a transformative effect on the local, regional, provincial and national economies.
The anchor investor of the SEZ will be Vedanta Zinc International, which is already running the Gamsberg Zinc Mine and intends to build a smelter for the treatment of zinc concentrate.
The SEZ would advance the aims of developing infrastructure, accelerating skills development and empowerment, and consolidating economic development in the Northern Cape.
Executive Summary
At the official launch of the Vedanta Gamsberg Zinc Mine, President Cyril Ramaphosa suggested that the mine complex could be the core and catalyst for economic development for the region through the establishment of a SEZ. He specifically called for more beneficiation of South Africa’s minerals to take place in South Africa.
Vedanta Zinc International started exporting product from the mine in 2018 and has so far invested about $400-million in the project. The company is considering the construction of a smelter; together, these facilities would form the base of the SEZ.
President Cyril Ramaphosa and Vedanta chairman Anil Agarwal at the Gamsberg mine opening.
Investors in related downstream activities such as fertiliser, explosives, paints and sulphuric acid would use product from the mine and the smelter. Further opportunities in renewable energy, transportation, storage and construction would naturally flow from the primary activities.
All investors would benefit from the special benefits that accrue to investors in SEZs (outlined below). The plan for the Namakwa SEZ complies with and is aligned with the Provincial Growth and Development Strategy of the Province, the Northern Cape Spatial Development Framework and the National Spatial Development Framework. Furthermore, the plan supports the concept of development corridors and local economic development.
Location
Aggeneys is in the Khai-Ma Local Municipality within the Namakwa District Municipality of the Northern Cape Province. Aggeneys is 66 km from Pofadder (headquarters of the local municipality) and 110 km from Springbok, where the office of the district municipality is located. All three towns are on the N14, the national road that links Springbok with Pretoria.
The proposed Namakwa SEZ is strategically located along a bulk commodity corridor, which runs from a planned port on the Atlantic coast (the Boegoebaai Deep Port Harbour) through Aggeneys to the large urban centre of Upington and beyond to the concentrations of iron ore and manganese ore at Sishen and Kathu. Upington Airport is capable of handling large aircraft.
The railway line that currently transports ore from Sishen to the coast at Saldanha is one of the engineering marvels of the world, moving 40-million tons every year along an 861 km route.
Anchor investment
The value proposition of the Namakwa SEZ is based on the existence of the Vedanta Gamsberg Zinc Mine and the proposed building of a smelter by Vedanta Zinc International. These would be the anchor tenants of the SEZ.
In 2010 Vedanta Resources acquired Black Mountain Mining (Pty) Ltd from Anglo American. Black Mountain Mining (Pty) Ltd, part of Vedanta Zinc International, owns and operates the Gamsberg Zinc Mine. By 2014 environmental authorisation had been granted to Vedanta, together with a waste management and water-use licence. Development work began in June 2016 and the mine is currently mining four-million tons per annum and producing up to 250 000/tpa of zinc metal in concentrate for export.
The mine’s approved capacity to produce zinc and lead concentrate is 10-million/tpa. The planned increase in volumes will lead to the concentrator plant producing 1.1-million/tpa of zinc and lead concentrate. The open-cast mine and concentrator plant are being developed in phases.
The construction of the concentrator plant began in 2017 with the official opening in February 2019. Phase 1 is complete, and planning work for the commencement of Phase 2 is currently underway.
Vedanta Zinc International started exporting product from the mine in 2018 and has so far invested about $400-million in the project. (Photo: Kevin Wright/Vedanta Zinc International)
Smelter
It is proposed that a smelter be built to treat zinc concentrate produced at Gamsberg. The zinc concentrate produced at the existing concentrator plant will be treated in the smelter using the conventional roast-leach-electrowinning (R-L-E) process.
The full process would involve the treatment of 680 000/tpa of zinc concentrate to produce 300 000/tpa of high-grade zinc ingots for export. As a by-product 450 000/tpa of 98.5% pure sulphuric acid will be produced for both export and consumption within South Africa*.
* This information is taken from the Draft Scoping Report, Non-Technical Summary, prepared by SLR Consulting, January 2020.
Various types of infrastructure will be needed to support the smelter, including:
Secured landfill facility: 21 ha in extent and situated 1 km away from the smelter, connected by a paved road.
New water pipeline: Approximately 7 km water pipeline to connect the Horseshoe reservoir with the smelter complex.
Business partner camp: 12 ha for accommodation during the construction period.
Laydown area: 15 ha for use during the construction period.
Upgrade of transmission line: upgrade 66 kV transmission line to 132 kV transmission line within the existing servitude and associated upgrades to the Eskom substation at Aggeneys.
In 2018 alone, Vedanta spent R44-million on skills development, health, enterprise development and municipal infrastructure support, with a further R77.5-million spent with local businesses. In the period 2014 – 2019, Vedanta invested over R77-million on a range of CSR programs, and over R88-million on various training initiatives.
Gamsberg is considered one of the most digitally advanced mines in South Africa, which will give impetus to the provincial ICT sector.
De Beers Group Managed Operations Managing Director, Mpumi Zikalala and Acting Mayor of Musina Local Municipality, Councillor Jeremiah Khunwana turning the first sod on the Stand 4 construction site. The Stand 4 development is one of the Stay in Business accommodation construction projects taking shape in Musina.
De Beers Venetia Mine, in partnership with contracting partner, BMH Africa, has launched a skills development programme, which aims to develop skills in the construction industry and ultimately enhance the local skills base.
The programme, which is part of De Beers Group’s Socio-Economic Development strategy in Venetia Mine’s host communities of Musina and Blouberg, aims to support skills development and job creation for 150 construction workers that will be employed on the mine’s accommodation projects.
The programme, which will be implemented over a period of 24 months, is targeted at three skills levels:
Level 1 is a semi-skilled short course programme: aims to increase the resource pool of semiskilled construction workers by formalising their skills through the attendance of short skills courses and a formal skills assessment.
Level 2 is a semiskilled accredited programme: aims to assist construction workers with some form of previous training to complete the artisan trade test and qualify as an artisan in terms of South African legislation.
Level 3 is a practical training programme: provides an opportunity for existing TVET students to complete a portion of their practical training through employment at one of Venetia mine’s accommodation projects. Some of these students may qualify to complete the artisan trade test
and qualify as an artisan.
Mpumi Zikalala, Managing Director of De Beers Group Managed Operations, said: “This project we are launching today [22 April 2021] highlights our commitment to development of our host community, with particular focus on the youth. What we recognise is the importance of working with our contractor partners to ensure that the projects we implement have scale and touches the lives of many of our host communities as possible.
“We are proud to have partners such as BMH Africa, who share our values and are committed to walking with us in shaping a better future for our host communities. This approach is very much in line with our Building Forever Framework, which is our commitment to create a positive legacy that will endure well beyond the recovery of our last diamond.”
The skills development programme will also identify and train personnel in various construction skills. This will include a literacy assessment to determine the ability of prospective learners, occupational health and safety training where learners will obtain a firm understanding on how to achieve a Zero Harm mindset through safe working procedures and the transfer and formalisation of construction skills.
Councillor Jeremiah Khunwana, Acting Mayor of Musina Local Municipality, said: “The good news for our people is that the construction of the accommodation project will also provide job opportunities and the development of skills to the locals. This will help our people, especially the youth, to become independent and be able to stand on their own after the project is completed. Let me take this opportunity to thanks De Beers Venetia Mine for their contributions in developing our municipality through their social and labour plan. Musina is now a fully-fledged town because of your kind assistance.”
Through this project, construction workers, who are mostly young people, will be equipped with skills and a verifiable record of training and employment. This will allow them to apply for future job opportunities on other projects at the Venetia Mine or in other sectors.
Christoff Pretorius, Project Manager of BMH Africa, said: “It is not often that a construction company gets to be involved in such an extensive skills development programme that will change lives forever. It is a privilege for us to be involved in this programme with De Beers Group and our various service providers.”
Through its Socio-Economic Development strategy, Venetia Mine is also implementing a number of key projects in the Blouberg area, where commercial farming plays a critical role in providing employment and entrepreneurial opportunities for many local farmers. The mine is investing R6.5-million in agricultural projects, namely; Eldorado Crop Farm, Gemarke Chilli Farm and Driekoppies Peanut Butter Factory.
Other Social and Labour Plan (SLP) projects amounting to a spend of R15.5 million and being implemented in our host communities of Blouberg and Musina include amongst others, the Education Schools Programme targeting 25 schools in Musina and Blouberg, Alldays Road Paving, Construction of the Taaiboschgroet Community Hall, Development of the Alldays Sports Complex and the Alldays Pump Station.
De Beers Group is committed to supporting the economic development of its host communities. Our SLP is an important element of this and we believe that partnerships with municipalities are key to delivering meaningful and sustainable benefits in education, infrastructure, as well as economic opportunities through farming.
Sean Young, Air Products’ Welding Specialist in action.
Air Products prides itself on outstanding customer service, innovation and a secure supply of industrial gases, but more importantly is the technical expertise provided to customers in terms of the application of the range of gases supplied.
The welding fabrication process takes place when two or more parts of material are fused together by using pressure, heat, or both. Creating a weldment (completed weld joint) requires specialised skills.
Welding Specialist, Sean Young, is known in the industry for his knowledge and expertise in terms of welding processes and available to assist distributors and customers with technical matters.
In this video, Sean Young shares insight on the Gas Metal Arc Welding (GMAW) process with specific focus on the Metal Inert Gas (MIG) and Metal Active Gas (MAG) welding processes. He further highlights their most important uses and benefits as well as how this specific type of welding compares to others.
Media release by David Maynier, Western Cape Minister of Finance and Economic Opportunities
The immense response to the Cape Town fire from across government, civil society and the private sector has been incredible. In particular, I would like to thank businesses in Cape Town, especially those in the tourism and hospitality industry, who have stepped up to quickly assist those affected by the fire, especially University of Cape Town (UCT) students who had to be evacuated from their residences.
Through the co-ordination efforts of FEDHASA and Ubuntu Beds, over 29 accommodation businesses provided 560 rooms to almost 1 000 UCT students on Sunday, 18 April 2021, and the support continues to increase. Ongoing accommodation will be provided to students until such time as they are able to return to their residences.
Old Mutual have offered their premises in Pinelands as a collection point for donations and their kitchen facilities as a base for the preparation of over 12 000 meals which have been distributed by Gift of the Givers and Hospital Heroes to the students.
Restaurants and fast-food outlets such as Den Anker, Burger King, Tigers Milk, City Grill Steakhouse and others are also providing meals to UCT students.
In fact, just this morning I had the privilege of visiting Den Anker to meet with management and the team working hard to provide meals to the students. With the assistance of donors, they’ve already provided 40 meals to students on Sunday night and 350 meals on Monday night.
I also visited Makers Landing and met with representatives from the V&A Waterfront to hear about their efforts to feed students from the venue – since Sunday over 4 000 sandwiches have been made and 1 000 lunches, 1000 dinners and 1000 breakfasts have been served.
Makers Landing is also available to students as a work space with free wi-fi, and the V&A Waterfront are providing personal care items to the students that are currently being housed in temporary accommodation in Breakwater Lodge.
Other retailers and brands such Massmart, Engen, The Foschini Group, Woolworths, Pick n Pay, Shoprite, Pioneer Foods, Blue Ribbon bread and Coke have also offered donations and supplies, while Uber and Bolt have provided free trips to transport students and deliver meals, and we are grateful to them for their support as well.
These are just a few examples of the many impressive efforts made by the private sector, many of whom have been hard-hit by the Covid-19 pandemic yet are showing great initiative to support our fire-fighting heroes and those displaced by the fire.
These efforts could also not have been achieved without the help of hundreds of volunteers who have given generously of their time to assist.
This comprehensive and immediate response to the crisis is also a result of lessons learnt and systems implemented to accommodate healthcare workers and stranded international tourists during the Covid-19 pandemic.
While the Cape Town fire has caused great damage to property and the irreplaceable loss of historical works and important research, the cost of which will only be full counted in the days and weeks to come, the efforts of business to step up and assist in this moment of crisis are welcomed and are certainly a positive during this tragedy.
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A R16-billion industry, it is a large employer with 85 000 direct jobs and an estimated 350 000 jobs indirectly attributable to sugar production. KwaZulu-Natal is responsible for nearly 80% of the country’s sugar production, with 20 000 growers producing 1.68-million tons of sugar annually.
Courage – to face the unknown requires courage. We need to feel the anxiety and move towards the unknown despite it.
