FAR UVC Africa has announced that it has received certification from the CSIR (Council for Scientific and Industrial Research) for its ground breaking Far-UVC sanitation lighting technology system, to destroy Corona Virus.
Due to the nature of Covid-19, it has proven difficult to manage the spread of the virus in South Africa, and some of the most effective counter-measures are to sanitise, wear masks and socially distance where COVID cases are found.
“Our technology offers a one-of-a-kind real time air and surface sanitation solution. No other product is able to effectively kill SARS-Cov-2 and all other pathogens and bacteria, in the air and on surfaces of occupied spaces with the speed and effectiveness of Far-UVC. Far-UVC light, unlike UV-C light, does not penetrate the skin or eyes, making it 100% safe for humans and animals alike.” says Conrad Kullmann, Managing Director of FAR UVC Africa.
Far-UVC is a technological breakthrough product that causes a physical distraction of viral, bacterial, and fungal cells in a matter of seconds. It is the first of its kind to provide practical and effective countermeasures that are animal and human safe to fight off infectious diseases and pathogens in occupied spaces.
Designed and assembled in South Africa, for the South African market, Far-UVC uses an imported built-in technology that has been used for many years by the healthcare industry to destroy superbugs in hospitals.
Adds Kullmann, “We are determined to help curb the spread of the CoronaVirus by distributing the Far-UVC lighting technology and finding ways to provide a ‘safe zone’ in public and private spaces where the South African public cannot avoid going.”
This technology offers a low maintenance long term sanitisation solution for business and intimate or enclosed public spaces including hospitals, health care centres and healthcare transportation as well as the transportation industry as a whole.
“We cannot deny that Covid-19 has caused tremendous strain and pressure on the healthcare and transportation industry because it is not always possible to socially distance in medical centres, inside healthcare vehicles, buses, taxis and trains; and the amount of ventilation available is not always sufficient to exterminate viruses, and airborne viruses still continue to be spread,” says Kullmann.
Far-UVC lighting provides a safe and effective alternative solution to mitigate virus transmission in such settings.
“By using Far-UVC light sanitising technology, it’s possible to disinfect the whole body within eight seconds. while providing everyone with the peace of mind, of knowing that they are safe and protected,” concludes Kullmann.
FAR UVC Africa provides a finance plan for retailers and business owners who are interested in turning their places of business into a Covid-19 safe zone.
To learn more about FAR UVC Africa, please visit the company website: www.faruvcafrica.com
With winter just around the corner, many businesses will be going into the low season. This means fewer customers, therefore, less revenue. The trick to not just surviving this period, but making it work to your advantage, is to have a plan for managing your cash flow as well as using the time to prepare for future success.
With this in mind, we’ve put together four tips for businesses to manage through their quiet months:
Stick to a plan
Take advantage of the downtime
Plan for the busy season ahead
Learn and learn again
1. Stick to a plan
Low seasons come around every year and should not take you by surprise. Every successful business should have a plan in place, much like they’d have a plan for the busy season. To start, don’t base your slowest season’s plans on your busiest season’s results. It won’t take long for this type of planning to cause serious problems for your business finances.
Your plan should anticipate seasonal fluctuations and adjust accordingly. If revenue is lower, you will need to cut costs.
Potential areas for seasonal cost savings include:
Fewer operating hours
Reduced workforce
Fewer or smaller inventory buys
In addition to cutting costs, consider where you can leverage existing assets to generate income.
You could leverage assets by:
Selling off excess or aging inventory at a discount
Securing a line of credit against inventory, equipment, and property
The slow season is the one period of the year when you have time to focus on areas you may ordinarily not have time for. As you get close to the slow season, prepare yourself to take advantage of the time it provides.
Plan to Plan
The slow season is a great time to develop roadmaps for your business. Now is the time to determine what aspects of your business need attention. Think about how you can best prepare your business for the uptick in customers, transactions, complaints, and everything else that comes with the busy season. Be prepared to plan for these busy season realities as the slow season arrives.
Here are some common areas that often go overlooked as you grow your business:
Employee benefit packages
Updated business plans
Marketing strategies
Organizational roadmaps
Areas that deserve your attention vary depending on your business’ industry, maturity, growth, and other unique factors. The best way to prepare for your slow-season planning is to identify areas that deserve your attention.
Take control of administrative tasks
Before the slow season begins, identify administrative tasks that need your attention.
Your administrative tasks will vary depending on the nature and stage of your business. But, there are some common administrative tasks that many business owners avoid during the busy season because they are either too time consuming or boring:
Tax strategy
Staff growth and outsourcing needs
Internal policies and procedures development
Whether you have neglected these tasks in the past, or you simply need a good chunk of time to get these tasks completed, be ready to knock them out when the slow season provides time.
3. Plan for the busy season ahead
Once the busy season arrives, it’s too late to prepare for it. The slow season is a perfect time to ensure that you make the preparations and adjustments needed to hit the ground running when the busy season comes back around.
Train Employees
All employees benefit from training, but finding time to train isn’t easy. During the slow season, you have the time to offer training options that meet your employees’ needs. Newer employees may need some basic onboarding training. Your more seasoned employees likely need more advanced training to improve their skills. Identify the training needed across your workforce, and plan that training before the slow season hits.
Inventory Strategy
The slow season is a good time to dive into your inventory strategy, if it’s relevant to your business. The goal of an effective inventory strategy is to identify the most effective and profitable inventory method for your business. While the slow season is the time to conduct an inventory analysis, you must develop a plan beforehand that will serve as your roadmap to execute this.
Here are some common metrics and processes to consider when reviewing your inventory practices:
Inventory turns
Average shipping time
Cost of inventory
Volume discounts
Fill rate
Shipping accuracy
The list above is a starting point for analyzing your inventory practices. Before the slow season arrives, determine which metrics make sense to review when the slow season gives you a window of time to do so.
During the busy season, track the metrics applicable to your inventory strategy to ensure you are ready to execute your review when the low season arrives. An effective inventory strategy will be unique to your business.
Investing in a Customer Relationship Management (CRM) system can be one of the most effective means to increasing customer engagement and retention for an SME. A CRM solution enables a business to efficiently collect a wealth of data on its customers’ behaviours and preferences, and then quickly respond to these via personalised communications. CRM tools can also play a vital role in aligning a business’s Marketing and Sales activities.
Let’s have a look at 4 reasons why your SME should consider investing in CRM software to grow your business:
A single view of the customer
Real-time data access
Nurture leads with optimized user journeys
Track your KPI’s (Key Performance Indicators)
A single view of the customer
A CRM platform allows a business to collate all of the data it holds on a customer, including previous purchases and interactions with the customer service team, in one place. This can then easily be viewed and acted upon by internal teams. The more you know about your customer, the easier it is to meet their future needs. Having a complete overview of all your customers also helps a business to segment its customer base and develop different strategies for each.
Real-time data access
The real-time data collection and analysis most CRM tools offer enables companies to gather information on prospects or clients straight away. You get actionable information on who is visiting the website and which content they are viewing. You will see which emails they are opening or clicking on, as well as which forms they have filled out.
You will also learn about their preferences, which goods and services they buy, and how to upsell to them. By capturing behavioral data CRM tools allow you to engage in a more personalized manner.
96% of people aren’t ready to buy from you the first time they visit your website.
The same can be said for a trade show, networking gathering, or company conference. Rather than launching your sales pitch straight away, it is important to get to know your prospects and engage with them on a more personalized basis. This is conveniently accomplished by developing lead nurture journeys using a CRM platform.
As an example: email addresses can be collected via a form on your website. When this occurs, a sequence of automated email messages can be triggered. Each message can share more about your products and services, while also being tailored to any subsequent actions the lead completes (such as downloading additional product guides).
This prompt, and customised way of following up with leads, can significantly increase conversion rates.
Track your KPI’s (Key Performance Indicators)
CRM tools can help you answer crucial business questions, such as:
Which marketing strategies are the most effective? E.g. Paid Search, SEO, or word-of-mouth?
Which methods of customer service do your customers prefer, such as do you need a live chat or phone support?
Which customer segments are most profitable?
A CRM tool provides real-time filtering and monitoring, allowing you to understand important performance drivers such as:
Which sources your new marketing leads are coming from
Effectiveness of the sales conversion funnel
The efficiency of your customer service team in handling queries
A CRM system can be the missing link for small companies looking to get closer to their clients,
Here are three of the most common CRM tools SMEs can consider:
Hubspot – assign your customers to specified stages of the sales funnel where you can personalize their user experience with your business through content and marketing material.
Salesforce – ensures trouble-free contact management by providing access to important customer details and relationship history. It provides a full description of the client, with insights and engagement-enhancement techniques.
Freshworks – designed to help sales teams never fall behind with built-in phone and email, robust insights such as lead scoring, website monitoring, and intelligent workflows.
A CRM system can be the missing link for small companies looking to get closer to their clients, generate more leads, and increase revenue. Customer Relationship Management solutions provide you with the data and knowledge you need to automate your processes and improve your customer experience.
Shutdown at Air Products’ air separation unit (ASU) at Sasol.
Air Products is known for their ability to provide a secure supply of industrial gas to customers. Maintaining a high standard with regards to service delivery and customer service is largely the result of planning and executing continuous maintenance on different ASU’s. Performing shutdowns and placing a strong focus on safety during this process, has become an integral part of the company’s success. Plant shutdowns are a critical activity that needs to be performed at specific intervals to ensure the optimal use of equipment, operational efficiency and most importantly, to secure a safe work environment for Air Products and customer’s employees.
As a market leader, Air Products is familiar with the planning and execution required for a successful shutdown, however the added responsibility to ensure safe work practices during COVID-19 has added another dimension to a process that is already extremely complex and time sensitive. Air Products has completed a major shutdown at the Sasol Facility in Sasolburg in March 2021 and is extremely proud of the on-time zero incident and successful execution.
In addition, the company reported zero COVID-19 infections despite having a team of more than 270 individuals forming part of the process.
Air Products’ success in this most recent shutdown at Sasol, which formed part of one of their biggest maintenance shutdowns, is largely as the result of strategic planning and the quality of the local team’s skills and expertise.
Dumisa Gina, General Manager – Operations
Keeping gas flowing to customers
As customers are reliant on Air Products’ gases to keep their operations going, it is important to ensure that the customers agree with the process and are constantly updated on the project status.
According to General Manager – Operations, Dumisa Gina, most of the Air Products plants are linked to customer supplies, and for that reason a process has been developed over the years that mainly focuses on the customer’s operations. “When we do a shutdown, communication with the customer is crucial and our team ensure that all parties agree on the timelines and have their planning in place to manage during the shutdown period. In this situation the customer becomes the most critical player on our team”.
Elements in the shutdown process
Area Production Manager, Chris Schoeman, explains that each shutdown is unique based on the size of the specific plant, the products manufactured and the challenges associated with each. However, the basic elements in the shutdown process such as safety, planning, costs and quality remains the same and forms the basis of any shutdown. “As long as these elements are all aligned, the project will succeed.”
This year, with the current COVID-19 pandemic, another important element was added – a contingency plan had to be developed to make provisions for COVID-19 infections. In effect, this meant that regular safety protocols as well as Air Products and the customer’s COVID-19 protocols had to be followed to create a safe work environment for all.
A delicate mix of planning, expertise and teamwork
The team involved in a shutdown generally consists of experienced individuals from disciplines such as engineering and maintenance. The planning, which took approximately two years, and the 20-day execution is conducted by experienced engineers and a maintenance team with skills required to complete all the aspects of a shutdown. It is important for the management team to ensure that the execution plan is clearly understood and followed by all parties involved, within the set timeline and by following all the necessary safety protocols.
Chris Schoeman, Area Production Manager
In essence, it is a collaboration of efforts and skills from the maintenance, operations and projects teams that ensures a successful shutdown. During a project of this nature, it is crucial that there is good communication, understanding and interaction between the teams to ensure each one’s role is performed in accordance with the project plan. Contractors are generally also part of a shutdown and usually fulfill specialised roles.
Dumisa Gina further explains that contractors play an important role during the shutdown: “Although Air Products consists of an experienced team, we need more hands when it comes to specific skill sets and utilising the expertise of contractors definitely adds to the overall strength of a shutdown team. Having said that, it also requires a special focus as they need to also understand the project at hand and have the same commitment as the rest of the other team members.
More importantly, the contractors need to be familiar with all the general safety standards and protocols as well as the additional protocols that is needed to be maintained to prevent the spread of COVID-19 infections”.
According to Chris Schoeman any shutdown project requires focus, dedication and commitment from all parties involved. “I am really humbled by this team – a shutdown is always a challenge, but they worked like true professionals and went to extra mile to adhere to the additional COVID-19 protocols”.
Dumisa Gina concludes: “At Air Products, we pride ourselves in our ability to provide an outstanding service, but we have a very important new learning from our last shutdown – using and having proven processes in place, we had a solid base to work from and were able to absorb additional challenges such as keeping all safe during a pandemic”.
Digital Transformation refers to the overall change of organisational activities aimed at leveraging opportunities created by digital technologies and data. This requires companies to profoundly transform their business models, infrastructure, processes and culture, in order to steer them toward finding new sources of customer value.
The use of digital technologies has transformed commerce and how businesses interact with their customers. To adapt to this changing world, organisations must embrace digitisation.
“For small businesses just getting started, there’s no value in setting up your business processes and transforming them later. You can futureproof your organisation from the get-go. Thinking, planning and building digitally sets you up to be agile, flexible and ready to grow,” says Trevor Gosling, CEO of small business service provider, Lulalend.
Equally so, Gosling says that SMEs can transform their business model to increase productivity and profitability. “This could mean replacing manual processes with digital ones or upgrading existing digital resources or systems with newer, more capable ones.”
SME owners should consider crafting a winning digital strategy through ensuring top to bottom support. Since digital transformation is a large undertaking that impacts any aspect of the enterprise, it is impossible to execute a plan without the buy-in and alignment of all the main stakeholders in the organisation.
For small businesses just getting started, there’s no value in setting up your business processes and transforming them later. You can futureproof your organisation from the get-go.
While most companies have been moving online over the past few years, digital transition is not a one-time event. It is a continuous approach to how business is conducted that can affect all aspects of the organisation.
“SMEs need to understand how much capital they want, and can afford, to invest in a project. Your budget will help you define the scope, timing and phasing of your strategy,” says Gosling.
To do this, it will require business owners to critically evaluate their digital objectives, what they intend to accomplish, as well as defining the kind of experience they would like to offer to their clients and employees. “Try to keep the long game in mind when you consider these issues. The aim of a digital transition is to help your business achieve its long-term goals. Your vision should be optimistic and positive,” he explains.
In addition, having access to data is critical to achieving transformation objectives. Companies who exploit their data and operate on it easily gain an advantage over their competitors. An even more significant strategic advantage is developing the ability to collect useful data, convert the data into concrete observations, and, most importantly, act on those insights.
According to Gosling, data without insights and insights without intervention are meaningless. The pandemic has shifted digital transformation into an overdrive. Gosling says that there is no turning back. “People have now gotten used to living in a digital world.”
The growing pressure of digital competition has compelled long-established companies to rethink their marketing strategies. It is important for businesses to recognise that digital innovation influences various sectors in several ways. It provides extraordinary opportunities to follow new market models.
The latest guide in our Business High Five series, The SME Guide to Digital Transformation, offers useful guidance on how to introduce digital technology to help your business succeed.
The South African wine industry expects exceptional wines from the 2021 wine grape crop. (Photo credit: Simoné René Nel, Piekenierskloof Wines).
Wine lovers from across the globe can enjoy outstanding wines from a much cooler and later 2021 wine grape season in South Africa. This according to the annual South African Wine Harvest Report 2021.
“It seems as though the vines really took their time to prepare this year’s harvest,” says Conrad Schutte, consultation service manager of the wine industry body Vinpro. “Moderate weather throughout the season, and specifically during harvest time, resulted in grapes ripening slower, while developing exceptional colour and flavour.”
The 2021 wine grape crop is estimated at 1 461 599 tonnes, according to the latest estimate of industry body SAWIS (South African Wine Industry Information & Systems) on 19 May 2021. It is 8.9% larger than the 2020 harvest.
The harvest kicked off around two weeks later than normal due to unusually cool weather conditions throughout the season, which persisted throughout harvest time and resulted in some wine grape producers harvesting their last grapes in May. Water resources were also replenished in most regions following the recent drought, which contributed to good vine growth, bunch numbers and berry sizes.
“Although these are general observations, it is always important to take the South Africa wine industry’s diversity over ten wine grape growing regions into account,” Conrad says.
Remarkable wines
“The late and slow harvest was definitely worth the wait. Wine lovers can really look forward to remarkable wines from the 2021 crop,” Conrad says. “The cooler weather enabled producers to harvest their grapes at exactly the right time, and viticulturists and winemakers are especially excited about good colour extraction, low pH levels and high natural acidity in cases where vineyards were managed effectively, which all point to exceptional quality wines.
The 2021 wine harvest – including juice and concentrate for non-alcoholic purposes, wine for brandy and distilling wine – is expected to amount to 1 136.4 million litres at an average recovery of 778 litres per ton of grapes.
“We are delighted that harvest 2021 has proven to be somewhat of a silver lining for the South African wine industry, which will no doubt further bolster our international positioning,” says Siobhan Thompson, CEO of Wines of South Africa (WoSA). “What stands out above all else is the consistency in quality that we have come to see over recent years. This will go a long way to convincing those who may still have been on the fence and reinforce our overall standing alongside our international competitors. It is also very promising to note that the volume and value of wine exports from South Africa are higher compared to the year on year figures in 2020 and 2019.”
South Africa is the ninth biggest wine producer world-wide and produces about 4% of the world’s wine. The wine industry contributes more than R55 billion to the country’s gross domestic product (GDP) and employs 269 069 people throughout the value-chain, of which 80 183 work on farms and in cellars.
Strike a balance
Intermittent restrictions on the export and local sale of alcohol in South Africa from March 2020 to February 2021 as part of the country’s national state of disaster resulted in 650 million litres of wine stock at the end of 2020, of which a large portion was not yet contracted.
“With so much stock still in the tanks at the beginning of harvest time, producers and wineries were concerned about processing and storage capacity when taking in the new harvest, many of whom rented additional storage space or restored old tanks,” says Rico Basson, Vinpro MD. “However, the fact that sales reopened, along with the harvest starting later than normal, helped ease the pressure to some extent.” A number of wineries were also able to secure contracts with grape juice manufacturers, which helped work away some of the stock.
“The larger wine grape crop will require careful planning from producers and wineries to sell the current wine stock in a responsible and sustainable way. This situation will, however, also create the opportunity for innovation and growth of existing and new markets,” Rico says.
The weather was moderate in most regions during the post-harvest period, which led to leaves falling later than normal and vines building up good reserves. Producers also had access to sufficient water for post-harvest irrigation.
Winter was colder than the previous season, with much higher rainfall, which replenished water resources and led to sufficient cold accumulation to break dormancy.
The cold and wet weather continued into spring, which contributed to homogenous, but delayed bud-break and initial growth. In the coastal region, however, the wetter conditions made the timing of disease control more challenging.
Frost damage occurred in some irrigation areas and it was expected that significant frost damage in the lower lying areas of the Northern Cape and strong winds in the Cape South Coast region would have a notable effect on these crops. Fortunately, the frost and wind occurred at an early enough developmental stage for vines to recover.
Flowering and set was mostly efficient and even, while shoot and leaf growth picked up the pace by the start of November, which necessitated additional inputs from producers to manage the fast and vigorous growth.
Temperatures remained moderate during the summer, which slowed down ripening and resulted in harvest time starting out around two weeks later than normal. Although most wine regions experienced little rainfall during harvest time, there were also almost no characteristic heat-waves, and the lower day and night temperatures throughout the season led to producers waiting patiently for grapes to reach optimum ripeness.
Overview of regions
Breedekloof
A very late season, characterised by a good balance between yield and quality, as vines developed healthy canopies during a moderate growing season.
Cape South Coast
Challenging weather conditions led to a smaller crop, but enabled producers to truly make cool climate wines of exceptional quality.
Klein Karoo
Moderate weather conditions, good water availability and sufficient winter rainfall in certain areas resulted in a larger crop and great quality, although drought conditions still persist in some parts of the region, placing wine grape producers under great pressure.
Northern Cape
A good wine grape crop in terms of quality and volume, despite challenges in terms of sugar accumulation and load shedding during the peak of harvest time.
Olifants River
A later and cooler season resulted in slow, but even ripening of a somewhat larger and outstanding quality wine grape crop.
Paarl
Good water availability, sufficient reserves and cooler weather contributed to yields equal to that of 2020, which will result in elegant wines.
Robertson
Although it was a long and extended season, the vineyards realised a higher, exceptional quality yield.
Stellenbosch
A smaller crop, but outstanding quality grapes, resulting in great wines with good ageing potential.
Swartland
Consumers can look forward to exceptional wines from this year’s crop, following moderate weather conditions and slow ripening.
Worcester
One of the latest harvests recorded in this region, bringing with it a larger wine grape crop and remarkable wines.
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.
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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.
