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Business MOviNg & SHAKING

KwaZulu-Natal womeN iN BusiNess ResouRce Guide

The Women in Business Forum (WIB) of the Durban Chamber of

Commerce and Industry (DCCI) is proud to launch the “KwaZulu-Natal Women in Business Resource Guide” a directory of women entrepreneurs and organisations in KwaZulu-Natal.

Vani Moodley, Chair of the WIB Forum said, “Being a membership based forum for women business organisations in KwaZulu-Natal, we aim to fully represent the collective voice of women in business to lobby and advocate against the disparagement of women entrepreneurs. Our emphasis is on women operating in priority sectors of the economy in order to achieve equity in business at all levels.”

Moodley added, “It is a known fact that the reason for the limited contracting of women entrepreneurs for significantly larger projects in the province has its roots in gender bias and denial of the existence of high levels of skills and experience. These reasons have consistently been cited to explain the lack of

visibility and reach to women entrepreneurs.”

The “KwaZulu-Natal Women in Business Resource Guide” presents a resource of women entrepreneurs that, coupled with outstanding interventions of the collective, will positively facilitate the exponential growth of women owned enterprises in the significant mainstream of the ‘first” economy.

The WIB Forum hosts quarterly “PowerHouse” gatherings where industry specialists and procurement desks highlight the general and sector specific opportunities available to women entrepreneurs. The emphasis is on imparting knowledge and information on the current state of the economy, economic developments and opportunities that facilitate strategic business decision-making.

Specific interventions targeted at youth, senior women in business and women based in rural areas have been designed, planned and are in the process of being implemented. n

Vani Moodley, Chair of the Women in Business Forum and Member of Council, Durban Chamber of Commerce and Industry Chief Executive Vani Moodley & Associates – South Africa International: +27 (0)31 261 6872 Mobile: +27 (0)82 444 1338 Email: moodleyvani@iafrica.com

moviNG aNd shaKiNG BusiNess iN duRBaN By Andrew Layman, the Durban Chamber of Commerce and Industry

In any thriving and dynamic

economy, the moving and

shaking is done by the

private sector, either in terms of its own powerful business

imperatives or its ability to shape the regulatory framework, or both. In South Africa, with the tacit approval of the business community, it is government which has occupied the pre-eminent role. This is the expectation of the majority of the people whose distrust of the private sector and its profit motive

shapes a vision of the economic landscape. It is a vision of “radical transformation” and job creation, but lacking sufficient recognition of the engines of growth. Government is able to provide the infrastructure, albeit belatedly, and it might even have a hand in the vehicles, but it cannot ensure that the engines run at optimal efficiency and power.

In its recent report, “The Future of Manufacturing: Driving Capabilities, Enabling Investments”, the Global Agenda Council stated that in the global context manufacturing has taken on a new face over the past few decades. The industrialised countries have seen rapid declines in manufacturing, while this has shown significant increases in the developing world. The index known as Manufacturing Value Added (MVA) is significant. According to the report, the world’s MVA reached an all-time high in 2013, amounting to $12 000 billion. In two decades,

the global MVA increased two and a half times, despite the fact that, especially in the advanced economies, manufacturing employment declined. The most improvement occurred in the industrialising countries (by more than three times, in fact). In these, there has been a notable increase in so-called “informal” employment which allows manufacturers to be more agile and more competitive, by employing on the basis of need.

Regrettably, South Africa cannot claim to have benefited from the trends, despite the action plans and the stated commitments to industrialisation. It is politically fashionable to point to unused trillions hoarded by the private sector rather than being used to invest in the country and its future. But, just as the sowing of seed in expectation of a good harvest depends on fertile ground, investment requires the certainty and predictability of a conducive environment.

The report identifies “three pillars” of manufacturing: factors, standards and costs. Among the factors are labour, land, infrastructure, resources (energy), technology, capital and market. We have some in abundance, but others are scarce, and, in fact, inhibitively so. The national agenda of job creation is at odds, in a way, with the exploitation of technology, while this is difficult considering the low levels of education within a numerically vast labour force. The domestic market is limited in size, but the ones that lie beyond our borders are massive. They are also difficult to access because of transport costs and inadequate infrastructure. The unreliability and shortage of energy have led us just about to crisis point.

In the sphere of standards, the relevant matters are: quality, interoperability, consistency, reliability, environment, safety, security. Some production generated in this country is

world class, but some is not, because it is difficult to achieve high quality without far greater commitment to manufacturing processes. There is too little value chain development, safety and security issues are not pursued as vigorously as they might be, and production is plagued by disruptions of one type or another. Relevant cost factors relate to the input costs, those to do with distribution ... (continued pg 3)

DURBAN CHAMBER COMMERCE &

INDUSTRY : CONTACT DETAILS

Tel: +27 (0)31 335 1000

Fax: +27(0) 31 332 1288                   

Chamber House - Lion Match Office

Park, 892 Umgeni Road, Durban,

KwaZulu-Natal, South Africa

http://durbanchamber.com

what will womeN’s empoweRmeNt meaN foR meN?

“A breaking down of outdated autocratic leadership styles, and a fresh new nurturing and caring approach to leadership and staff management.” - David White, CEO

“I believe women’s empowerment will create or should create a better family life where men can be better fathers and husbands as both sexes share household responsibilities and chores. I think it will also create more opportunities for their children and give their children a broader perspective of the working environment, the world and provide them with some good insights into the different

challenges that men and women face in the working environment, their different coping mechanisms and the skill sets they bring as opposing sexes.” - Colin Long, Executive Financial Planner

“The empowerment of women continues to have a positive impact on our society and in our country. When our society, our economy and our communities prosper, then we all stand to reap the rewards. Men should not be ignorant of, nor intimated by, women empowerment. Quite the opposite, men must embrace, support and influence the empowerment

of women. We as men have a responsibility to teach our sons and daughters about gender equity, respect and love for one another - and to constantly remember that we all have the ability to help others – to be good and to do good.” - Alan Khan, Media and radio personality

“The power of 52% of the population harnessed and added to our economy!” - Pete Swanepoel, Optometrist n

Please send your opinions or comments on current issues to gayle@durbanbusiness.co.za

3

a passioN foR developmeNtDon Mkhwanazi recently

received an Honorary Doctor of Technology

degree in Management Sciences from the Durban University of Technology (DUT) for his outstanding contribution to the promotion of Black Economic Empowerment in South Africa, his prominent role in local and international entrepreneurship as well as his significant commitment to youth and social development.

This award is the latest of a string of recognitions acknowledging his remarkable contribution to development in South Africa. Notably, the eThekwini Municipality’s Living Legends Award in 2011 was presented “for a selfless, unparalleled contribution to society in general and business in particular.”

Over the years, Mkhwanazi has served as a non-executive member of various listed (Illovo Sugar, Mercedes Information Technology, UNIDATA, Anglo Alpha, amongst others) and non-listed companies. He was also a Director of the Industrial Development Corporation (IDC) and Transnet, as well as Chairman of the Central Energy Fund, Strategic Fuel Fund, SOEKOR and MOSSGAS. He is currently the Chairman of Southern African Shipyards, the largest shipbuilder in southern Africa and earlier this year leading consulting engineering firm, GIBB appointed Mkhwanazi as Chairman of the GIBB Holdings board.

Richard Vries, Group CEO of GIBB, commented that “Don’s invaluable experience on the continent and business in general is well documented. We believe that Don will provide us with in-depth insight into the challenges on the continent and the local business environment to help inform our strategies going forward.”

As the Chairman of Southern African Shipyards, the maritime sector in Africa is one that is close to his heart. He said, “It is clear that shipping is an enabler of trade and the future of Africa lies in the ability to trade more effectively and efficiently with the rest of the world.”

Mkhwanazi is a founding member of the Black Management Forum (BMF) and has long been considered the father of broad based black economic empowerment. However, his views of the need for a fully inclusive society were expressed in his acceptance speech at the DUT Graduation Ceremony. He said, “For South Africa to realise her full potential an economic revolution must take place. Economic revolution means fundamental change in economic power relations. It means the redefinition of economic power

relations between the haves and the have- nots. It means your race, religion, status, where you were born must not determine your ultimate station in life. It means equal and equitable chance of success in any endeavour of your choice in life. Economic function, nor success must not correspond to race. It means fundamental deracialisation of the economy. Simply put it does not mean rearranging of chairs in the Titanic ship, but rebuilding of the ship (SA Economy).”

Mkhwanazi is passionate about the centrality of entrepreneurship

for South Africa’s economic growth and development strategy. He said, “Entrepreneurship is crucial in creating new jobs in numbers and promoting sustainable economic growth and development.” He believes entrepreneurship is a necessary risk that our people must be prepared to take, because it creates jobs and therefore reduces the poverty and unemployment breeds crime.

In addition, the importance of quality education in order to positively impact on sustainable economic development and growth is of major importance to him.

He said, “It therefore becomes imperative that we increase the number of graduates with relevant skills for the South African economy.”

In his concluding comments Mkhwanazi stressed that it up to all stakeholders to participate in effecting change. Mkhwanazi said, “Each one of us has a critical role to play in advancing the cause of economic revolution. Each one of us has a crucial role in creating a better future for all. The future belongs to those who shape it. The future belongs to those who define it. Our future is in our hands.” n

(Continued page 2) ...

and finance and, significantly for our country, those required to comply with the regulatory framework. In none of these areas are we able to match competitors in some other countries.

However, wherever business operates, there is an environment which shapes its progress. It is said that the true entrepreneur does not concern himself with this because it represents circumstances beyond his control, and he finds the way through what others may see as minefields to take the risks that lead to profit.

The question is: are we to be victims of perceived constraints or seek the space to move and shake? To use a rugby analogy, there are those who score tries by finding space and using their skills to exploit it, and there are those who arrest their progress by running at the opponent. n

Dr Don Mkhwanazi was the Facilitator of the Maritime session during the African Renaissance Conference held in Durban in May 2014.

4

pRotectioN of peRsoNal iNfoRmatioN act (popi)

The South African legislative

environment is constantly

changing - often before business

has become completely

comfortable with its obligations under the preceding legislation; a challenge

for any company director.

It was no different when the Protection of Personal Information Act (POPI) was enacted in November 2013. Much fanfare was made in the press about the Act, but most especially about the “radical” changes that business is expected to adopt in order to be compliant. Almost every comment made noise about the fines that would be imposed if businesses failed to comply with its provisions. But how much of this is hype?

The facts

■ POPI applies to every private and public body (referred to collectively in this article as ‘companies’) , giving specific rights to natural and juristic persons in the way that their personal information is handled. ■ POPI will require changes

to the way in which companies conduct themselves, possibly extensively and almost certainly differing from one company to the next depending on the nature of their business in terms of the use and processing of personal information.

■ POPI does provide for significant fines and criminal sanctions on companies, directors and other employees who fail to comply with its provisions. ■ The effective date for POPI has

not yet been determined - save for the provisions relating to the establishment of the Information Regulator which became effective in April this year. ■ Now is the time for business to

be getting POPI ready. ■ We suggest that a good

understanding of the POPI act, is necessary to prepare companies.

popi: a snapshot

1. Be aware that POPI will be applied broadly to a wide range of situations and will require an explicit considered assessment on a case-by-case basis2. Processing of any personal information must be lawful in terms of the eight conditions set out in the Act, generally requiring prior consent (that may be withdrawn at any time) and considered in terms of the purpose for processing3. Companies must identify a defined purpose to collect information and the ‘data subject’ must be made aware of this purpose4. Further processing of personal information (ie, beyond the original purpose) needs additional consent5. Data subjects have a right to be informed about what information is collected and who has access to that information6. Data subjects have the right to object to processing and are

entitled to request access to, as well as the correction and removal of their personal information7. Responsible parties remain responsible, even where the information is transferred to another party for processing on their behalf8. All personal information must be complete, accurate and kept up to- date9. Companies must have a retention and destruction policy. Personal information cannot be kept any longer than is necessary to achieve the original purpose for which it was collected10. Companies need to take specific security measures to maintain the confidentiality and integrity of the personal information, regularly monitoring and updating these, and notifying the information regulator and data subject of any breaches

Clearly, there are many facets of a business that POPI touches on and, at first glance, may appear overwhelming to deal with at once. It is therefore key for any business to have a clear strategy which ties into existing, industry-specific legislation which already covers data protection to some extent. n

Shamit Govind Director, Information Technology Advisory, KwaZulu-Natal M: +27 (0) 82 719 1389 shamit.govind@kpmg.co.za

5

supeRtech duRBaN GoiNG eveN GReeNeR

Supertech Durban’s state of the art dealership is receiving much recognition,

recently winning first place in the Independent Newspapers ‘Your Choice 2014’ Awards in the best new car dealership category.

The iconic building, which was opened in January 2013, is situated on the corner of Solomon Mahlangu Drive and Bellair Street in Rossburgh. With great foresight and at a huge investment cost, much attention was paid to ‘green issues and elements’ in the design and construction of the building. Supertech MD Shabir Tayob and the directors Farida Tayob, Mohammed Ubaid Tayob and Mahomed Sader are committed to environmentally friendly practices and the desire to proactively reduce their ecological foot print.

Consequently, the pristine and striking building is equipped with a number of sustainable technologies. These include:

■ Rainwater harvesting – the building has an underground 300 000 litre tank from where collected rainwater is fed into the wash bay and used for garden irrigation in order to have a close to zero draw on municipal water.

In addition, the plants used in the landscaping design are all indigenous and water wise. ■ The Eco Wash system forms

a major part of the water-saving initiatives, as very little water is used to wash each car (less than a litre of water per vehicle). ■ Sensor lighting is used in all

office areas which means that the lights automatically turn on and off depending on the presence of people in the room. ■ The double volume windows

and sky lights ensure that natural lighting is used as much as possible. The windows are also glazed to filter UV light. ■ The air conditioning system

is a state of the art multiphase system, which is self regulating and eco driven, responsive to temperature changes internally and externally.

healthy lifestyle

The promotion of a healthy lifestyle forms part of Supertech Durban’s sustainable living focus. The Isetta bar caters for healthy food options. Staff have the use of an onsite gym to encourage physical fitness.Weekly visits by a doctor for medical advice and the dispensing of chronic medication as well as a nurse for routine health screening tests

and queries all form part of the employee wellbeing programme provided. The layout of the dealership is wheelchair friendly catering for both disabled staff and clients.

The future

BMW South Africa will be launching two electric vehicles in the very near future; the i3, which is aimed at urban drivers and the i8 sports hybrid in 2015 which is BMW’s Supercar. As part of this launch and a wide-reaching global sustainability programme, BMW SA has tasked its designated i-dealers to improve the environmental standards of its showrooms. All initiatives are aimed at limiting the reliance on environmental resources such as power and water as well as decreasing CO2 emissions with zero emissions as the end goal.

The next six months will see some additional projects implemented at Supertech Durban, which will be the only

dealer in KwaZulu-Natal to participate in the programme. These include:

■ The installation of solar energy panels that will supply 70-80% of electricity needed during work hours. ■ All lighting systems will

be upgraded to LED/efficient lighting in order to reduce power draw. ■ Water from the washbays will

be purified, recycled and fed into the dealership toilet system.

■ Real-time water and electricity usage will be monitored and the usage data will be available for customers to view.

Supertech Durban is well on its way to obtaining a much valued formal four/five star green building rating from the Green Building Council SA. It will be the only BMW dealership in South Africa to obtain a formal rating against the very stringent requirements set and will ensure that the dealership continues to be the one of choice. n

local ecoNomic oppoRtuNities of ReNewaBle eNeRGyDr. Susanna Godehart, Energy Office eThekwini Municipality

There is worldwide consensus that to limit climate change, most

energy needs to be generated from renewable sources in the long-term. Several countries have set targets to achieve 80 to 100% of energy through renewable sources by 2050. In South Africa, a national target has been set to produce 42% (installed capacity) from renewable sources by 2030. Municipalities are critical actors in the quest to convert to renewable sources because globally 75% of energy is consumed by cities.

The eThekwini Municipality faces severe energy related challenges.The local economy and the residential sector are

very energy intensive and nearly all energy consumed in Durban is imported. The eThekwini Energy Office has calculated that in 2012, close to R50b was spent on energy. This is 15% of the local GDP, or one Rand in every seven Rands spent.

The energy supply is very carbon intensive. In 2012 the greenhouse gas emissions in Durban were around 8t CO2 per resident. This figure matches the figure of developed countries with far higher GDP per resident. The electricity supply depends almost exclusively on ESKOM that increasingly struggles to ‘keep the lights on’. Only a tiny portion of electricityis locally produced from renewable sources.

The challenges underline the need to reduce the energy intensity of the local economy

and to reduce the dependency on energy import. But they also show the large economic opportunities if money that is currently spent on importing energy would be redirected to generate energy locally from renewable sources. This would result in a stronger and greener local economy. In addition, such a transition to renewable energy will impact positively on the environment and on the health of the residents.

A future energy system will rely on renewable sources such as solar, wind and biomass to supply electricity, heating and cooling, and power the transport system. A large number of local, small and medium sized producers will contribute to the energy supply and will make it more sustainable. Incorporating these new suppliers requires changes

to the energy infrastructure, especially the electricity grid.

Worldwide, cities and regions are taking leading roles in climate change mitigation because of their responsibility for the energy related infrastructure. In order to allow for the transition to a sustainable energy supply, cities will have to adjust infrastructure networks and operations. The complexity and cost of the transition to a low-carbon and green economy require a long-term planning perspective.

The Durban Climate Change Strategy sets ambitious targets for energy efficiency and renewable energy. In order to achieve the targets, the city must transition to a more sustainable energy supply. Currently, in South Africa only limited information exists on institutional, financial and

technological requirements how to achieve this. The eThekwini Municipality is embarking on a research project into these requirements. It will also assess the local potential for energy efficiency, the type and quantity of renewable energy sources, and the future energy demand. The objective of the project is to develop a framework for the transition to a more sustainable and self-reliant energy supply for the eThekwini Municipality. The framework will inform municipal policy to create the conditions for the emergence of a local energy sector as part of the green economy. This sector will provide socioeconomic opportunities, such as the promotion of innovation, economic development and the creation of green jobs. n

www.durban.gov.za

Exterior view of Supertech Durban

6

KwaZulu-Natal BaRometeR dRaGGed dowN By factoRies aNd fiNaNce- Acknowledgement: KZN Department of the Treasury, KZN Department of Economic Development, Tourism and Environmental Affairs, Trade and Investment KwaZulu-Natal

KwaZulu-Natal’s economy is under strain due to a lack of growth in the two

biggest sectors, manufacturing and finance, showing that the economic slump is still broad-based. The latest KwaZulu-Natal barometer, as compiled by Mike Schüssler of Economists.co.za, declined 2.4% year-on-year, the most in 13 months, as increased economic stress eroded the effect of the little growth the economy has shown.

economic stress on the rise

The growth index was up 3.3% year-on-year, 1.3% month-on-month and 2.3% on a quarter ago, boosted by transport and communications in particular. Given these growth numbers, the KwaZulu-Natal barometer could have been very positive if it was not for the increase

in economic stress. The stress index, which reflects factors like unemployment, inflation and interest rates, was up 5.8% on a year ago, the most since last August, and also grew on a month-on-month and quarter-on-quarter basis. Compared with three years ago, economic stress is 10.8% higher. Growth in KwaZulu-Natal could run into serious problems if the stress index continues to grow like this. The increase in the stress

index was driven by the rise in unemployment to 24.1%. While inflation in the province has come down slightly to 6.2% from 6.3%, it is still outside the Reserve Bank’s 3% to 6% target range and after the 75 basis points of interest rate increases this year, the borrowing cost is higher than 12 months ago. n

For more information please visit www.kzndedt.gov.za

dRiviNG iNvestmeNt

Durban Investment Promotion commonly known for years as DIPA is

part of the eThekwini Municipality and was recommended by the Durban City Council and organised private business as the appropriate vehicle to stimulate economic growth and new investment into Durban. The team’s main purpose is to, “Facilitate sustainable investment in Durban for the benefit of ALL”.

Russell Curtis, who heads up Durban Investment Promotion, said that there are good opportunities in the Durban region and we need to capitalize on the advantages present. Curtis stressed that the municipal and provincial government has put much focus on promoting economic growth through building infrastructure and institutional frameworks. He said, “There is however still much more to be done.” He emphasized the need for projects in KwaZulu-Natal to be implemented in partnerships with both multinational companies and local business in order to participate in the global value chains.

The strength of partners in getting things done is apparent in the Samsung Electronics South Africa investment, which has resulted in the opening of an electronics manufacturing plant in the Dube TradePort precinct.

“Samsung remains the leading consumer electronics brand in South Africa and we are determined to add value to the South African community in which we operate,” says Matthew Thackrah, Deputy Managing Director of Samsung Electronics SA. “The establishment of the new plant is another step in our goal to create new business opportunities, products and technology. Samsung South Africa is continuously

exploring opportunities which will benefit the country”, says Thackrah. He added, “Durban is aligned with these goals and this is an exciting step forward for the company.”

With a Phase One investment of 20 million USD (R222m) until 2018, the plan demonstrates the company’s effort to meet customer

demand in South Africa. The manufacturing facility will provide hundreds of job opportunities and encourage the development of skilled and unskilled labour in the region. The plant will manufacture initially for the domestic market and then will begin exporting to the rest of Africa.

This project is the result of close collaboration between Samsung and the South African authorities - at National and Provincial level

-plus key business colleagues. Provincial MEC for Economic Development, Tourism and Environmental Affairs, Mike Mabuyakhulu has been a key driver of the partnership investment process.

Dube TradePort’s redesignation as an Industrial Development Zone

and soon as a Special Economic Zone has also played a large role in facilitating this investment. CEO of the Dube TradePort, Saxen van Coller said, “The declaration of the Dube TradePort as a Special Economic Zone (SEZ) positions the region as a one-stop shop for investors and facilitates a clustering effect for manufacturers as well as provides ease of access to global markets. The Dube TradePort has positioned itself as a location for

light manufacturing and agri-processing and there are significant opportunities for investors to establish a base there.

Curtis said, “We are taking investment far more seriously than we have in the last decade.” Durban Investment Promotion cooperates closely with a range of

national and provincial investment promotion bodies as well as the Durban Chamber of Commerce and Industry and other key organisations, like the KwaZulu-Natal Growth Coalition, to promote investment in the city. Other major projects, currently being facilitated in Durban include:

■ The Durban Point Waterfront Precinct ■ National Ports Authority new

Durban dig-out Port and current Port expansions ■ Hammarsdale and  Cato Ridge

corridor developments ■ Large new industrial parks, with

integrated commercial, residential and retail opportunities  such as Cornubia, Kings Estate, Keystone and Finningley amongst others ■ Multiple transport authority

projects including road, rail and bus system expansions ■ Dube TradePort –broader

Aerotropolis project ■ Accelerated Durban CBD

renewal investments ■ Townships: secondary CBD

upgrades ■ Multiple industrial cluster

private public partnershipsCurtis concluded, “It is therefore

apparent that Durban’s horizons are becoming brighter, clearer and filled with more opportunities.”n

http://www.durban.gov.za

Dube TradePort’s 29° South Building

7

steel aNd eNGiNeeRiNG iNdustRies - siGNs of RecoveRy Kaizer Nyatsumba,

SEIFSA Chief Executive Officer

The metals and

engineering sector has experienced slow and unstable growth

since the financial crisis in 2007. In addition, the recent demand and production disruptions through various strikes have exacerbated the already alarming trends. It is against this backdrop that the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has formulated the view that the sector may contract during 2014.

Business confidence has been compromised in the sector since the financial crisis and seems to have taken a second turn for the worst since 2011. Capacity utilization has also been below the full benchmark of 85% for many years. In addition, various data indicate that, as a result, profit margins are under severe pressure. Furthermore, on average production levels have been 30% lower than the peak of 2007 and growth patterns vary,

due to production and demand disruptions.

However, SEIFSA Chief Executive Officer Kaizer Nyatsumba is of the view that in spite of the challenges currently facing the sector, there seems to be small signs of recovery of confidence. This was evident in the latest purchasing manager’s index figures released in September as well as the Bureau for Economic Research’s Manufacturing Survey for the third quarter.

“Assuming the lag of 12 to 18 months, growth in production will only be under way by the second half of 2015,” Mr Nyatsumba said.

To remedy the challenges currently facing the metals and engineering sector, Mr Nyatsumba says that manufacturing should play a much more critical role. This would help the economy to grow at higher rates than it has done over the past few years.

Mr Nyatsumba said that it was also vital that the Government and the private sector work collectively to achieve international competitiveness and find lasting solutions for economic growth in general and in the metals and engineering sector in particular.

“Approaching sector dynamics holistically has a better chance of success than an approach based on stages of production,” Mr Nyatsumba said.

Mr Nyatsumba said that in the medium term, it was possible that capital intensification would commence. This would be a reversal of prevalent trends.

“The increase in unit labour costs recorded over the past years, along with labour instabilities, may be substantial enough to make mechanisation a serious option.”

Commenting on investment opportunities within the sector, Mr Nyatsumba said there was a serious possibility that deteriorating investment patterns recorded over the past years would continue. The combination of rising domestic costs, production disruptions and competition from cheap imported components has had two results:

■ Gross fixed investment and the value of production capacity has declined. ■ The sector itself is replacing

domestically-produced intermediary inputs with cheaper, imported components for assembly in South Africa in order to save costs and stay competitive.

“Low capacity utilisation, very

low profit margins and competition from imports may result in no or very little investment in the sector. In addition, international doubts regarding South African producers’ ability to honour their supply commitments as exporters may have dire consequences in future.”

The industrial policy Response

Mr Nyatsumba is of the view that any industrial policy response should recognise the complexity of the sector and the fact that it is highly exposed to international markets and import competition.

The sector has the same domestic constraints as all other sectors,

but it seems to be losing its competitiveness. The support for higher value-added products internationally seems to be overwhelming South African producers. The strategy to “tax” upstream – commodity and basic metal producers – to compensate for international subsidies of imported products was not viable.

“There has to be a holistic policy response and the Industrial Policy Action Plan is a fine attempt,” said Mr Nyatsumba, who reiterated the need for Government and the private sector jointly to find sustainable solutions to address South Africa’s current economic woes. n

what Role caN maNufactuRiNG play iN duRBaN aNd south afRica’s futuRe?

The DCCI, in collaboration with SEIFSA KZN, recently hosted a meeting of

their manufacturing members. The event was met with much enthusiasm, as over 60 manufacturers attended to voice their views on the state of their industry. Common concerns

included tension in labour arrangements, coupled with rising electricity costs, a complicated regulatory environment and increasing competition from cheap imports as well as a shortage of skilled workers.

Manufacturing has for many decades been a major contributor

to GDP and employment in the greater Durban area.

Ajiv Maharaj of eThekwini’s Economic Development Unit highlighted that the textile, metals, transport and petroleum manufacturing sub-sectors are the largest contributors to eThekwini’s economy.

Glen Robbins of UKZN provided some of the preliminary results of the eThekwini Municipal Area Large and Medium Manufacturing Firm Survey currently underway. Preliminary findings include the fact that the number of firms importing from outside of the country is rapidly increasing, while the value of Durban’s exports has decreased, i.e. Durban is becoming increasingly reliant on exports. Another

finding is that nearly a third of the sample is no longer operating as a manufacturer, while a further group are still operating, but no longer engaging in manufacturing activities.

Some firms have been successfully engaged in expansion projects and strategies which include product specialization and niche thinking. Other factors that may have contributed to growth include a better understanding of Chinese and African markets including a focus on technological advances, productivity and marketing

Maharaj added that the City has established several interventions to assist local manufacturers, including the Durban Automotive Cluster; the Durban Chemical Cluster; the eThekwini Maritime Cluster; Use-It (a waste materials industry development intervention); the Durban Clothing and Textiles Cluster, and the KZN Tooling Initiative. There are two local government strategies which are relevant for manufacturers, the eThekwini Economic Strategy, with its focus of unlocking industrial

development, and the Industrial Land Strategy, which focuses on both greenfield and brownfield projects.

Ndumiso Mlambo, of the Best Practice City Commission (BPCC), said that the purpose of the BPCC is to facilitate investment linkages and reduce the cost and time associated with investment and doing business in Durban. Ndumiso closed by stating that the way forward is to engage with individuals firms to understand their needs, and couple incentive schemes with schemes in specific geographic areas.

Prasheen Maharaj- Southern African Shipyards encouraged the audience not to sit-back and dwell on the dire state of affairs in the manufacturing industry, but rather take the initiative to exploit government policy and strategy.

Should you be interested in engaging in this Forum, or should you have any concerns as a local manufacturer, please contact Shivani Singh singhs@durbanchamber.co.za for more information. n

8

successful hostiNG of the iNteRNatioNal uNioN of aRchitects (uia) woRld aRchitectuRal coNGRess iN duRBaN

The South African Institute of Architects, a national representative body serving

the interests of architects and architectural firms successfully hosted the International Union of Architects (UIA) 25th World Congress 2014 in Durban. The World Congress, which is the Architecture’s Profession equivalent of the Soccer World Cup was a

resounding success, which saw more than 4,200 delegates from all over the world attending the event.

The UIA is a non-governmental organisation accredited by the United Nations, and it represents professional associations of architects in 124 countries, and approximately 1,3 million architects worldwide. Reflecting on the success of the Congress, SAIA

President, Sindile Ngonyama noted that: “South African had staged the Congress to an unprecedented high level of quality and the architects that participated in all the various events had only good words of praise regarding the manner in which SAIA had organised the event”.

The key theme of the Congress was “Otherwhere: which had the

sub themes of resilience, ecology and values.

“Against the backdrop of hosting of the UIA World Congress, SAIA has now shifted its focus to the implementation of its Strategic and Business Plans that were approved

by the Board earlier this year. Our work is now really cut out for the next five years as we seek to attain our vision of ensuring that SAIA architects position themselves as the authoritative voice in the built environment”, said Obert Chakarisa, SAIA Chief Executive Officer. n

duRBaN icc scoops woRld tRavel awaRd

Perseverance, passion and the pursuit of excellence has kept the Durban International

Convention Centre at the top of its league. The Durban ICC has been voted ‘Africa’s Leading Meetings and Conferencing Centre’ at the World Travel Awards (WTA) for an unprecedented thirteenth time.

Now in its 21st year, the WTA brand is recognised globally as the ultimate hallmark of quality

and is renowned as the most prestigious and comprehensive awards programme in the travel and tourism industry. Each year, thousands of travel professionals worldwide cast their votes as the top organisations contend for the title in their regional divisions. The regional winners then compete head to head in a final round of voting to decide who will triumph in WTA’s World Awards – the

ultimate accolade in the travel and tourism industry.

Durban ICC’s Acting Chief Executive Officer Nicolette Elia-Beissel commented, “We are delighted to have achieved this award for the 13th time and we are honoured that the Durban ICC is recognised as setting the benchmark for world-class service on the African continent. I would like to express my appreciation to

all the stakeholders and clients who have voted us as the best in Africa and to the entire Durban ICC team for their tireless efforts in making sure we retain our top position. We are also thrilled that the city of Durban was awarded ‘Africa’s Leading Meetings and Conference Destination’ a title which provides global recognition and raises the profile of the destination in the international meetings industry.”

Commenting on both awards, James Seymour of the Durban KwaZulu-Natal Convention Bureau said, “This accolade once again affirms the status of the Durban ICC as one of the top convention centres in the world and the significance of Durban as a global business events destination.”

World Travel Awards President Graham Cooke said, “It is an honour for World Travel Awards to recognise the Durban International Convention Centre as Africa’s Leading Meetings and Conference Centre for an unprecedented thirteenth year. This location continues to lead the field in the African meetings, incentives, conferences and exhibitions sector, welcoming tens of thousands of guests each year to its state-of-the-art facilities.”

“Following victory at the Africa and Indian Ocean Gala Ceremony 2014, the Durban International Convention Centre will now move forward to the Grand Final, this year taking place in Marrakech, Morocco. I look forward to welcoming them at the ceremony”, added Cooke. n

Issued by: The Durban International Convention Centre For more information contact: Scott Langley, 031 360 1315 or scottl@icc.co.zaThe Durban ICC team whose passion has ensured an unprecedented 13th victory in the World Travel Awards

UIA 2014 Durban Architecture, wall mural.

9

GlamouRous, iNNovative aNd pRoGRessiveMarkus Fritz, General Manager of the Hilton Durban

The Hilton Durban

Hotel is currently undergoing major renovations to ensure that the glory of the hotel is

maintained along with adding some extra sparkle.

New generations of travelers are more discerning, expecting comfort, convenience, added value experiences as well as place an emphasis on the need to be connected. Markus Fritz, General Manager of the Hilton Durban said, The aim of the three year R150 million refurbishment programme is to ensure that these expectations are not only met but exceeded. The Hilton Durban is an international brand with a strong portfolio. Guests have brand assurance when they book into a Hilton Hotel, they know what they are going to get and we need to ensure that we keep the hotel appealing and interesting.”

He added, “It is important to show people that the Hilton Durban Hotel is keen to invest in the Durban city centre. This investment will not only benefit Durban but the conference industry as well.” The hotel is located alongside the Durban ICC, which makes it very convenient to conference delegates as well as provides an ideal base

for delegates to explore the tourist offerings of the region.”

The renovation of the contemporary lobby reception area has been completed. The Coral Lounge is a very stylish place to relax, drink a cup of coffee or have a business meeting. High tea has been introduced on weekends with a decadent range of sweet and savoury treats.

The restaurant will be renovated early next year and will introduce a new concept restaurant to Durban. The brand is still to be announced. Fritz said, “It will be the talk of the town. The aim is for a contemporary restaurant, with an emphasis on good food and wine as well as having a sports element that will be stylish and affordable attracting both hotel guests and Durban locals.”

After this phase, over the next three years, all the hotel’s rooms will be upgraded, including the executive suites and presidential suite.

Expect a smile and a greeting as you walk into the hotel lobby – you will not be disappointed. Service excellence is an intrinsic part of the Hilton’s offering and staff are trained extensively to ensure that these high standards are met. Development of staff is paramount; there are over 8,000 online courses, books, documents and videos in the Hilton Worldwide University. While staff training is essential, key to providing a good service is the correct attitude to guests. Fritz said, “You need to be a hotelier by heart as the job is very demanding,

every day is different, but also very rewarding.”

Along with service excellence is a commitment to use technology to satisfy the needs of the new generation of techno savy guests. Fritz said, “Today’s busy travelers want to be in control of their hotel experience as well as have ease of access to their rooms.” The hotel is to be among the first in the world to offer mobile check-in facilities.He added, “While sitting at home or en route to the hotel, Hilton Honours members’ will have the ability to check-in and choose from the available rooms through an app on their mobile devices, tablets and computers.  Using digital floor plans, guests will be able to select their room type, location in the hotel and room number.” On arrival at the hotel, guests just need to collect their room key from the front desk. In the years to come the hotel group will also include the technology for doors to be unlocked using smartphones.

Fritz said his vision for the Hilton Durban is that, “It will be the top hotel not only in Durban but in South Africa offering quality and convenience. New guest experiences are constantly being developed - watch this space!”. n

Exterior view of the Hilton Durban Hotel

New lobby areaHigh tea is served on weekends

10

KZN expoRteR of the yeaR awaRds 2014For over a decade, the

Durban Chamber of Commerce (DCCI) has

collaborated with Transnet Port Terminals (TPT) to highlight successful exporters in KwaZulu-Natal.   Each year, the programme culminates in the KZN Exporter of the Year Awards Gala Dinner at which the winners are announced. This year the awards were held on 30 October 2014 at the Durban International Convention Centre.

The Keynote Address was delivered by KZN MEC for Education Mrs Peggy Nkonyeni on behalf of the Honourable Premier of KZN Mr Edward Senzo Mchunu.

The awards are an ideal showcase for emerging and established exporters of a wide range of goods. With a GDP contribution of 16%, KwaZulu-Natal is the second largest economic contributor to the South African economy. A large part of the KZN economy is as a result of being host to the Durban Container Terminal, the largest

in Southern Africa, and Richards Bay Terminal. These two facilities are among 16 terminals run by TPT.

Dumile Cele, CEO Designate commented, “We celebrate and attempt to encourage exports out of KZN. The KZN economy needs to improve as it is currently faced with imports that are higher than it exports, making KZN a market for other countries to benefit, while we remain a follower on the world economic stage.”

It is important to highlight that this competition is part of the

Trade Department’s Strategy in its efforts to show business it is not only about winning.

The DCCI acknowledges all partnering

companies that have joined in support of the 2014 KZN Exporter of the Year Awards. They include TPT, TIKZN, SEDA, emc and ABSA.

Winner Category Service Provider: Sponsored by eThekwini Maritime Cluster: Indian Ocean Export Co. Ltd

Andrew Layman (CEO DCCI), Logie Naidoo (Speaker of eThekwini Municipality), Peggy Nkonyeni (MEC for Education), Karl Socikwa (Chief Executive: Transnet Port Terminals), Thato Tsautse (Immediate Past President DCCI), Akash Singh (President DCCI)

Dumile Cele (CEO Designate of the DCCI)

11

this yeaR’s fiNalists aNd wiNNeRscateGoRy: small

■ Africa! Ignite - Finalist ■ M/S Scott Bader (Pty) Ltd

- Finalist ■ SBS Water Systems (Pty) Ltd

- Winner

cateGoRy: medium

■ Futura Footwear Ltd - Winner ■ A.J Charnaud & Co (Pty) Ltd

- Finalist ■ Iqlaas Foods (Pty) Ltd - Finalist

cateGoRy: laRGe

■ Canvas and Tent Manufacturing - Winner ■ Sumitomo Rubber South Africa

(Pty) Ltd - Finalist

■ The Lion Match Company (Pty) Ltd - Finalist

seRvice pRovideR

■ Indian Ocean Export Co Ltd - Winner ■ Mediterranean Shippng

Company (Pty) Ltd - Finalist ■ Rohlig- Grindrod - Finalist

cateGoRy: afRica

■ Imperial Armour CC - Winner - Small Category ■ Iqlaas Foods (Pty) Ltd - Winner

- Medium category ■ AJ Charnaud & Co (Pty) Ltd

- Finalist - Medium Category ■ The Lion Match Company (Pty) Ltd

- Winner - Large Category

■ Sumitomo Rubber South Africa (Pty) Ltd - Finalist - Large category ■ Bell Equipment Company

Finalist -Large Category

special BBB-ee awaRd

■ Africa Ignite - Winner ■ SBS Water Systems (Pty) Ltd

- Finalist ■ Canvas and Tent Manufacturing

- Finalist n

Alta Keyter, Marketing and Communication Manager T: 031 335 1000 E: keytera@durbanchamber.co.za Nothando Hadebe, Marketing and PR Assistant T: 031 335 1000 E: hadeben@durbanchamber.co.zaWinner Category: Large: Sponsored by TPT: Canvas and Tent

Winner Category: Small: Sponsored by SEDA: SBS Water Systems (Pty) Ltd

Winner Category: Africa: Small, Sponsored by TIKZN: Imperial Armour

Winner Category: Special BBB-EE Award: Sponsored by TPT: Africa! Ignite

Winner Category: Medium: Sponsored by ABSA: Futura Footwear

Winners Medium Category: Africa: Iqlaas FoodsWinners Category: Africa: Large, Sponsored by TIKZN: The Lion Match Company (Pty) Ltd

12

talKiNG eNtRepReNeuRism An interview with David White,

CEO of DRG Outsourcing

Interviewer: Gayle McLennan-Smith of

Moving and Shaking

Thank you David

for taking this time to

speak with Moving and Shaking about your thoughts and involvement in entrepreneurship development in South Africa.

Thank you Gayle, it is my pleasure. Entrepreneurship is now being regarded world over as the single greatest hope in creating employment for new entrants into the economy. Government and big business can no longer absorb the mass of school leavers and graduates coming into the market each year. It is now an important time for entrepreneurs to help create employment, and bring new ideas and improved processes into the market.

we know that worldwide statistics of successful entrepreneurs are low, showing as much as eight out of ten companies failing in their first two years. would you say that in south africa we are in a better or worse situation with regard to entrepreneurs being successful?

Better. Setting up and managing a business in SA is perhaps as complex as any other business environment in the world with regard to compliance, meeting operating standards, customers choices and demands, and shareholders expectations. But we in SA have an underlying culture of ubuntu, pioneering, innovation,

self-sufficiency, and most importantly our huge need to create sustainable small businesses.

in your view you believe we could become a nation of self-sufficient entrepreneurs.

Yes indeed..! I think we as a nation urgently need to create employment opportunities for our many unemployed citizens. Consider that three quarters of the people in SA between the ages of 18 and 24 have never worked in a formal or semi-formal business environment. Consider that we have one million new people leaving school each year. Consider that of the 52 million citizens in SA, only six million are tax payers. Such a large and unproductive population creates unrealistic demands on Government to provide services, housing and social welfare. These are the early warning signs of a catastrophic situation. Clem Sunter said recently that in order for Government’s target of five million jobs by 2020 to be reached, SA would need to create one million entrepreneurs. These factors create the energy and necessity for us to develop and encourage entrepreneurship.

so david.. what is it that will make more entrepreneurs more successful more often..?

Some of the best minds in the world are working on incubator and entrepreneur development models, and some are having great success. I think that we as a global community are learning more about what an entrepreneur is or isn’t each day, and at the level benchmarking “excelling entrepreneurism”, simplicity, originality, and contribution to society stand out as key criteria. No longer is the world trying to make

entrepreneurs into business people, but is now celebrating their passion, innovation, and energy as a unique talent.

do you think that there is a formula for understanding the probability of a new business venture being successful..?

Perhaps not a formula, but I think that we can follow a methodology to help us identify strengths and weaknesses in the entrepreneur’s idea, leadership attributes, and the business structure and environment. So often we think that the entrepreneur’s vision or idea is the business. It is not. The vision or idea is the nucleus of the company (it helps to direct action and passion), but the business is the system that coordinates and integrates operational activities within the company. So we have the entrepreneur perspective with its creative imaging and desire, and the business perspective with its systems, staffing, constraints, and operating responsibilities. Following a methodology where we rate entrepreneurs on the attributes and influences needed to help ensure their company’s success will help to create a common business platform, and support a more productive functioning model and outcome. But there will always be that X-Factor with entrepreneurs, where they are successful in creating a popular commodity, and providing advantageous returns to investors and staff - without needing a defined methodology.

what would you say make up an entrepreneur’s x-factor characteristics.

Bearing in mind that 98% of people throughout the world work in companies with less than 20 staff, we already have many successful small owner managed businesses. We know that there are many different industries and markets, and we know that entrepreneurs come in all shapes and sizes, with

different personalities, heritages, and education levels. There are also many different levels of entrepreneurial success, and each situation, product, and market is unique to itself. I would say that an entrepreneur’s ability to adapt to the uniqueness of his/her environment is perhaps the single greatest example of what characterises the X-Factor. Successful small businesses are common in that they are led by entrepreneurs with passion, tenacity, customer focus, and a love for what they are doing. There are other aspects such as the benefit and attraction the product will have to clients in the market, the entrepreneur’s ability to reason wisely and guide the business along its path of progress, and the entrepreneur’s natural leadership style and ability to create an engaging staff culture.

how would you group entrepreneurial focus areas in just a few points?

I would group into five measurable attributes: Idea and Vision, Core Competencies, Business Reasoning, Market Intelligence, and Tenacity.

please talk about the business environmental side of being in business.

Every business is made up of activities, which include functions like marketing, financial management, human resources, operations, etc. A sustainable business needs to be built on a solid foundation of best practice business activities, and be able to meet compliance, customer, and shareholder expectations. Other important considerations include growth in the industry, competitors, exchange rates, legislation, resourcing (funding and staffing), and of course a plan/strategy to steer the business idea into a valued commodity.

last question.. you are part of a team that have created a

business mentoring service for entrepreneurs. can you tell us a bit about this company.

BusinessFit is an organisation that has been developed by 12 KZN business leaders. Each person is the head of their own company, and together we have the experience and knowledge to consult on every activity in a company’s business environment. Entrepreneurs can engage BusinessFit to draw in professional support partners to help them create the foundation they need to build their business idea upon. Our aim is to help make more businesses more successful more often, by supporting the entrepreneur’s vision and idea with a solid business foundation. BusinessFit has specialist mentors in each business activity, including strategy, marketing, financial management, cash flow management, human resources, systems, website design, BEE, etc. We are essentially a one source solution for entrepreneurs, and our mentoring methodology consists of discovering the current situation in a business, developing the entrepreneur and his business foundation, and delivering a more robust and structured company. We call it the 3D Approach, and it is definitely helping entrepreneurs to build confidence in their ability to run their businesses. BusinessFit is also an Enterprise Development Beneficiary, and as such (and for BEE points) we are able to provide business mentoring services into supply chains of larger companies, and help them to improve their suppliers’ service quality and business longevity.

Thank you David for your time and comments..!

Thank you Gayle, it has been a pleasure speaking with you and Moving and Shaking..! Thank you for a great publication. n

DRG Outsourcing (Pty) Ltd Tel: +27 (0) 31 - 767 0625 Fax: +27 (0) 31 - 767 3280 david@drg.co.za www.drg.co.za

13

maRGaRet hiRsch lauNches BusiNess womeN of the yeaR competitioNs at all hiRsch BRaNches

Over the last two years, Margaret  has been the recipient of a variety

of awards to acknowledge her contribution to the business world in South Africa, from the BWASA  Business Woman of the Year (Entrepreneur) award in 2012 to SANLAM’s Lifetime Achievement Award in Entrepreneurship in 2013.  This year she was a nominee

in the  Standard Bank sponsored Business Woman of the Year (Topco) Awards.

“Winning these awards has been wonderful – both for Hirsch’s and for me personally, and I would like to see this happening to other women in business.”  Margaret explained when she decided to launch the Margaret Hirsch

Business Woman of the Year Award in each area in which Hirsch’s operates throughout South Africa. “As women, we tend not to be assertive enough.  There are so many fantastic women out there who are not coming forward to be acknowledged for their contribution to the business world, and I would like to encourage them to come forward and enter the competition 

or nominate a friend or business owner who they would like to be recognized for this award and if you think you are a successful business woman don’t be too shy to enter yourself!”  she said.

Margaret announced that Sky Carboni was the first finalist to be chosen. At any given time during the day, one is likely to find her under the bonnet of a car or even under the car as she is considered to be the only credited female motor vehicle assessor in KZN, with 13 years of panel beating under her belt. Sky has extensive hands on knowledge and is CEO and owner of PRO- Auto Assessing. Sky introduced her company to insurance companies and brokers by phoning, emailing and literally knocking on doors.

These days she is one of the preferred providers for companies such a Holland Compendium, Reid Raetzer, CC& A Insurance

Brokers and TIB. Sky is not only a hard worker but a wife and a mother as well! n

womeN oN the move

The Businesswomen’s Association of South Africa (BWA) recently

announce the appointment of   Farzanah Mall as president of the national body. As a Director in the Advisory – Risk Consulting division at KPMG South Africa and the former Regional Chairperson of the BWA KwaZulu-Natal (KZN), Mall will lead as the voice of women in business, at South Africa’s largest and most prominent association of business and professional leaders in the country.

Mall brings with her over 15 years of experience in providing risk consulting, governance, strategy and business development services to a number of key organisations in South Africa and internationally. She succeeds Lebohang Pheko, who resigned in August 2014.

Speaking about her passion for women empowerment and youth development, Mall believes that it is the key to poverty alleviation, job creation and socio economic growth. “I’ve always had a passion for helping others, particularly

growing leaders and in the last five years my greatest joy has been to observe “the magic” and impact to lives when a great team comes together, to work collectively for the betterment of others. This has led to influential business leaders supporting and commending us for the key role we play in the economy,” she said.

A proud mentor to young women from previously disadvantaged backgrounds, Mall has had the opportunity to participate in a number of forums on gender diversity and issues facing women in the workplace and has successfully launched mentorship and leadership programs.

“As Maya Angelou once said, ‘When you learn, teach. When you get, give.” Together with the board, regional chairpersons, sponsors and partners I am looking forward to learning, teaching and giving to this incredible organisation as we drive the agenda of women empowerment in South Africa and Africa”, says Mall.

mpume langa to head durban Bwa Branch

Mpume Langa – Head: ABSA Private banking will be taking over as the new regional chairperson of the Durban BWA Branch. Mpume has been an active executive member of the BWA Durban region for two years and has been

extensively involved in many of its projects.

Langa said “I see an incredible opportunity in front of me to empower all women of KZN from all walks of life. I am encouraged by the power of the women that I will be serving in KZN and want to ensure that BWA provides us with a platform

to build our businesses and our BWA brand while also delivering clear, concise, great service and support to all our members.  As KZN we have strong winds in our sails, including the fact that KZN has produced a National leader. We have a great deal going for us, and a great deal to be proud of!”. n

Mpume LangaFarzanah Mall

Margaret Hirsch and Sky Carboni

14

ecoNomic implicatioNs of miNimum waGe implemeNtatioN

The Durban Chamber of Commerce and Industry has prepared a paper on

the Economic Implications of Minimum Wage Implementation. It is not a definitive conclusion by any means; it is just the start of a rational, broadly-encompassing debate.

At present there is no coherent national minimum wage policy in South Africa. The general consensus in many quarters is that the apartheid wage structure has not been fundamentally altered, as many black South African workers in

the private sector continue to live in poverty. A 2013 study suggests that in 2011, nearly half of South Africa’s workers earned less than R 3033 per month, while the estimated minimum living level (MLL) is roughly R 4000. It is evident

that many minimum wages currently prescribed by sectoral determinations and bargaining council agreements fall well below the MLL threshold. This begs an important question: Will the implementation of a national minimum wage policy

reduce poverty and improve the standard of living for South Africans?

what is a ‘minimum wage’?

A ‘minimum wage’ may be defined as the smallest hourly wage rate that an employee may be paid as mandated by the law. A traditional minimum wage has three characteristics, namely:

■ Must be adequate to satisfy the purchase of vital necessities (such as food, clothing, housing, education and recreation); ■ Represents the lowest legal

level of remuneration; and ■ A failure to abide by the

mandated rate is punishable by the force of the law.

In considering the determination of a minimum wage, several other important criteria are usually considered. These include:

■ The ability of the employer to pay the mandated wage rate (this is particularly important for SMMEs); ■ Regional differences in the cost

of living; ■ The prevailing labour market

situation, i.e. the interaction of the supply and demand of labour in a relatively competitive labour market; ■ The productivity of the

individual worker in relation to other workers conducting comparable work in other institutions or industries; and ■ The relative ‘power’ afforded to

labour unions (this is dependent on the negotiation skills of the party; the personality and societal culture of the negotiators; and the culture of collective bargaining).

why mandate a minimum wage?

The general consensus is that the purpose of implementing a minimum wage is to afford wage-earners the requisite social protection in terms of the minimum permissible levels of wages. A fixing of the minimum wage provides workers a reasonable income to meet their basic needs, as well as prevents the exploitation of ill-informed workers.

The increased attention garnered by minimum wages in recent times is attributable to COSATU’s repeated calls to implement a national minimum wage. COSATU’s calls are supported by their research into the apparent successes of Brazil’s consolidation of a national minimum wage (an increase in the national minimum wage of 81% in real terms between 2003 and 2010, or roughly R3000 per month).

what is cosatu calling for?

1. A coherent national wages and incomes policy, which

15

1. is to be combined with an appropriate macroeconomic and industrial policy, and not the policy outlined in the National Development Plan. The wages and incomes policy must be complemented by a developmental state, as part of a comprehensive strategy. 2. A national minimum wage will be one cornerstone of this national policy and will aim to protect low-wage workers. 3. Legislated comprehensive sectoral bargaining will improve on the minimum wage threshold. 4. COSATU argues that if the minimum wage policy in Brazil was not coupled with an increase in domestic productive capacity, it would not have driven the creation of large scale formal employment opportunities.

what is the proposed minimum wage threshold?

According to a Mail and Guardian report in September 2012, the Labour Research Service proposed a living wage level of R 4 105, while UNISA suggested R 4 000 per month for a family of five. By contrast, the average minimum wage earned by those

workers who fall under sectoral determinations is R 2 115 per month (based on 2011 figures).

how do we expect firms to adjust to a national minimum wage policy?

There are three basic ways in which firms will adjust their behaviour when faced with a minimum wage mandate. The first and most common strategy is for the business to increase the price of their goods and services in order to reflect higher production costs. However, it is likely that the level of competitiveness of the market and price sensitivity (i.e. elasticity of demand) of consumers may prevent this.

The second strategy may result in an increase in the firm’s overall efficiency as the threat of increased operational costs will encourage the firm to become more attentive to cost-saving measures. Therefore an improvement in worker productivity coupled with a redistribution of firm resources including water, energy and waste

efficiency interventions may be seen.

The knee-jerk reaction of the private sector is to reduce the size of its labour force. However, it is unlikely that South Africa’s relatively rigid labour legislation will allow for this. Rather, it is more likely that South African firms will choose to adjust price, productivity or distribution of resources prior to the consideration of retrenchments. Firm relocations are not a popular choice as the modest magnitude of minimum wage cost increases often discredits the feasibility of this option.

The international empirical literature highlighted that the outcomes of a national minimum wage policy on employment levels is highly dependent on the econometric methodology selected and the characteristics of the local labour market.

The South African literature was confined to the agricultural sector and provided an argument against a minimum wage as it has the tendency to increase unemployment, and in some cases decrease the number of hours worked per individual. The Thai case was explored and it was evident that a national

minimum wage policy poses a significant inflationary risk for the macro economy. This risk, coupled with decreased consumption demand from the private sector does not deliver a convincing case for a national minimum wage regime. The Chamber however acknowledges the propensity of appropriate sectoral determinations to yield positive employment outcomes, and provides recommendations to achieve this. n

For more information contact Shivani Singh Manager: Policy and Advocacy singhs@durbanchamber.co.za

uNileveR BReaKs RecoRd at top employeR awaRds

Unilever South Africa has been certified number one company to work for by the

Top Employer Institute for a second year - having taken first position in 2013/14 and now in 2014/15.

The Top Employer South Africa Awards which took place on Thursday, 2nd October at a gala dinner held in Gallagher Estate, Johannesburg saw Unilever walking away with four category awards, securing exclusive certification as:

■ Top Employer overall South Africa ■ Top Employer in the FMCG

sector South Africa ■ Top Employer in the

Manufacturing sector  South Africa and ■ Top Employer overall Africa“Being named the number one

top employer in South Africa for the second consecutive year cements Unilever’s position as a Top Employer of Choice in the market. We are really excited that we have been awarded this accolade. Unilever South Africa’s vision is to be a leading company helping to create a brighter future for all South Africans. As part of our business strategy, we invest significantly in creating an inclusive culture where our employees feel valued and engaged,” said Peter Cowan, Chairman of Unilever South Africa.

Unilever places people at the heart of it strategy.  A lot of emphasis

is placed on the development of leaders who are then able to take HR policies and implement them within the company.   The company has world class facilities that demonstrate the investment that the company is making towards its people.  This promotes engagement amongst employees and further shows leadership’s commitment to diversity and inclusivity.

In addition to this, Unilever has a highly regarded graduate programme that offers a world class leadership development curriculum which offers international careers and mentorship programmes.

“Being named a Top Employer differentiates Unilever’s position to attract and retain the best talent, whilst allowing the company to benchmark its HR policies

and practices externally”, added Antoinette Irvine, Vice President Human Resources, Unilever South and Southern Africa.

“We are humbled that amongst equally competent contenders we emerged as the Top Employer yet again.  Our aim is to continue raising the bar and remain by far the best employer on the African continent. Having achieved this recognition

for the second year running, we are grateful to be celebrating such prestigious awards made possible by our dedicated and committed employees,” concluded Irvine. n

Unilever South Africa Unathi Mgobozi External Affairs Manager For only media queries only, contact: Unathi.Mgobozi@unilever.com Tel: 031 570 2470

Source : Department of Labour http://www.labour.gov.za

16

Key to the futuRe

From 12 – 14 October 2014, Airports Company South Africa (ACSA) hosted

industry executives from across Africa and presidential bodies from ACI World and ACI Africa, for the 23rd ACI Africa Region Annual Assembly, Conference and Exhibition in Durban. Service Excellence – Key to the Future was the theme for this year’s conference that presented exciting opportunities for business to connect with counterparts from other areas of Africa.

As one of the continent’s leading airport authorities, ACSA participated in discussions on service quality issues at airports as well as the economics of service excellence in operations. This was a unique opportunity for the company to share expertise and lessons learned in an effort to contribute to the improvement of service levels at airports in Africa.

The Chairperson of the Board, Busisiwe Mabuza, CEO, Bongani

Maseko, and a few members of the senior leadership team represented the business at the event. Speaking opportunities featured ACSA’s learnings on Airport Service Quality implementation as well as the collaborative decision making programme adopted by business.

The conference hosted representatives of the aviation industry from the continent as well as a few global exhibitors. ACSA was involved in facilitating and ensuring that everything from logistics to the strategic discussion sessions went smoothly. General Manager of King Shaka International Airport, Terence Delomoney said, “One of the best and most well organised regional assemblies in a long time”, which echoed the positive sentiments of the 350 attendees and delegates.

ACSA has, without a doubt become an international player within the sector, currently providing services to nine regional airports within South Africa and the Guarulhos International Airport project – Brazil and Mumbai International Airport – India.

Their aspirations to become a world leading airport operator is confirmed by the fact that the most recent Airports Service Quality (ASQ) survey ranked O.R Tambo, King Shaka and Cape Town International airports in the top three in Africa.

Globally in the Skytrax rankings of the world’s top one hundred airports, Cape Town International is placed 22nd, King Shaka International 26th and O.R. Tambo International is 28th, King Shaka International is placed first in the under five million category and Cape Town first in the five to ten million category.

Delomoney feels that the conference left a very good impression on all the delegates and spoke volumes in affirming the ability of the airport, city and province to deliver a world class experience. A comprehensive tour of the King Shaka International Airport, Dube TradePort and the City of Durban allowed select delegates the opportunity to explore the facilities, understand systems and observe working processes. A true ambassador, Delomoney made a point of reiterating Durban’s position as a business destination, remarking,

”We have worked hard to earn the respect of the international aviation community. Being able to boast that Durban will be hosting the 21st World Route Development Forum (World Routes) in September 2015 makes it all worth it. This marks the first time in its history that the event will be held in Africa.”

Armed with the information that came out of the strategic sessions and motivated by a renewed perspective of the achievements, ACSA is determined to improve its offering on all levels. The departure point will be getting back to service basics, best practices that are not dependent on financial viability. The strategy will be supported by initiatives in technological advancement, security improvements and new processes aimed at delivering an end user experience that is second to none. n

Colin Naidoo King Shaka International Airport: Communications and Brand, Manager Airports Company South Africa www.airports.co.za

BiG Name aRtists foR woRld Jam music festival

No less than 35 of SA’s top artists and 17 international acts will take

to four themed arena stages for the inaugural World Jam Music Festival on 6-7 December 2014. They will perform a cross section of music that holds appeal for all South Africans, both young to mature audiences, appealing to all communities and languages, before the closing performances on Saturday and Sunday nights where another eight major acts will be added to the bill for the weekend.

Music award winning artist Kelis, Platinum selling album guitar band, The Kooks and the electrifying Bollywood Electro Dance Music extravaganza from the worldwide franchise BollyBoom headline the World Jam Music Festival. But it’s not just the magnitude of the festival that impresses, it is the quality of the music content, themed food experience and interactive lifestyle exhibitions that make this unique and an event not to be missed by any family or music fan!

“There are over sixty world class performances, where some musical styles and artists may be known and

others will be something completely new to many. A varied “musical education” can be expected, which is exactly what we intend with this festival as we create a melting pot of cultural experiences. This is Durban, KwaZulu-Natal’s very own homebred event, and something that we will grow in years to come as an annual iconic event made posssible through local collaboration and partnerships,” says Craig Clay-Smith, of the Flagship Group and Communications Director for the festival.

A Proudly South African line up includes Arno Carstens, Just Jinjer, Mango Groove, Prime Circle, Freshlyground, Jimmy Dludlu, Lira, Jeremy Loops, Khaya Mthethwa, Mandoza, Beatenberg, Shortstraw, Gangs of Ballet, Mathew Mole and a return to South Africa of the globally acclaimed Parlotones.

Come and see jazz and soul legends like Regina Bell, Najee and Alex Bujon in the New Orleans and Oceans arenas or Mango Groove and Kurt Darren in the Rainbow Arena complement newcomers like Lira, Mafikizolo, radio playlist leaders reggae group

The Rudimentals, Durban’s own Natalie Rungan, plus Ernie Smith, Shortstraw, Jimmy Dludlu and The Meditators while Hip hop duo Locnville and Beatenberg up the tempo with their special POP, EDM and Rap.

When the arenas close down after 6pm on Saturday night, multi-music award winning Prime Circle, who has released five studio albums to date and achieved multi-platinum-selling status in South

Africa, will open the bill in the main stadium for headline acts The Kooks and Kelis.

Beverley Theron, World Jam Music Festival Director says: “World Jam Music Festival is the perfect platform on which to launch this festival within a festival. EDM is a universal culture, which has true cross over appeal to all markets and demographics. It is a one in a million spectacle and we are very proud to be associated with this top

billing for our Sunday programme.”

Daily tickets are available at Computicket from Monday 20th October ranging from R300 – R950 and from R540 to R1710 for a two day pass. Hospitality and Exhibition space details are contained on the web site. n

View the artist full line-up at

www.worldjamdurban.com

Kelis Estevanoriol and The Kooks

17

vodacom aNd office 365 cReate collaBoRatioN platfoRmBroadening the business

possibilities. Peter Fourie doesn’t just manage his Just

Call Communications business, he lives it:

“Before we take any solution to market we want to try it ourselves. I want to see how it works and what features it has. It’s never just the product, it’s about how we bring it to the customer and how it impacts on their business.”

The challenge

Mobility and collaboration Just Call Communications is a technology services provider, based on the outskirts of Johannesburg, South Africa. “We specialise is cellular technology,” says Fourie. “We have to believe in a product before we can begin to sell it.”

His company, founded in 1998, has grown to a staff of 10. The business now operates nationwide, working with clients ranging in size from multinationals to local small businesses it sells mobile solutions into cities and rural areas to work effectively, Fourie and his team must be available at all times, and have full access to client information.

“Mail is now such a big part of our business,” he says. “The ability to share information is vital.” As an independent dealer of both Vodacom, Fourie was well aware of the potential of Microsoft Office 365 from Vodacom. A cloudbased solution, Office 365 would allow Just Call Communications to access applications from anywhere, from any device. Business-class email and shared calendars means staff remain in touch and in-sync.

“It was obvious Office 365 could offer two benefits,” says Fourie. “It would clearly help us to perform better as a business, and it was also something I could see being of great interest to our clients.”

Office 365 makes sharing information a pleasure. I don’t need to be in the office; I can go on holiday and still take care of business. Peter Fourie, founder, Just Call Communications

first mover advantage

Just Call Communications became one of the first users of Office 365 in South Africa, in August 2013. Fourie says he had no qualms about being an early adopter. “That suits us fine. We like to have a look at any new technology ourselves. A lot of the implementation was self-done, and we took plenty

of valuable insight from that. “It’s something we’re using all day, every day – which gives us tremendous confidence when taking it to market.” Fourie says, while cost savings have been a happy consequence, the major impact has been on productivity. “We’ve not bothered to calculate the savings. Having access to our information, from anywhere, at any time, is priceless. The email alone represents great value for money.” In particular, he says, Lync has changed the way his office collaborates on projects. “It has completely changed our workflow. When I need an answer I ping out an Instant Message, either from my mobile or desktop. Staff don’t need to drop everything, they can ping an answer straight back. It certainly beats shouting across the office!”

The bottom line transforming client meetings Fourie says he now spends at least half his time out of the office, with no downtime. He says Office 365 will encourage mobility for his staff, and allow the business to be more productive, more of the time.

He says the practicality of Lync has proved itself in client meetings: “We were in a meeting with the managing director of one of our clients, regarding the suitability of the latest Samsung tablet. “During the meeting, we downloaded some apps through Samsung play store and demonstrated the functionality. However, there were one or two issues where my knowledge of the device was incomplete. “While the client was testing the apps, I was able to unobtrusively connect with my wife, Tertia, via Lync from my iPhone. She uses the same tablet, and was able to quickly give me the information I needed. We walked out of that meeting on a high having satisfied the client’s concerns, knowing there was no unfinished business to attend to.” The next step, he says, is to integrate Office 365 with Microsoft Dynamics CRM solution, currently under Proof of Concept: “By integrating CRM with Office 365 we’ll have one dashboard to control our entire customer database. I think this will give us a real edge over the competition.

Benefits

■ Email, contacts and calendars: Staff can stay in touch and in-sync, wherever, whenever. ■ Secure file sharing: Staff are

able to access data on the go,

via tablets, smartphones or laptops. Teams can update files together, regardless of location. “Effectively, it means we can take the office with us,” says Fourie. ■ Online conferencing: Screen

sharing and real-time note-taking means Just Call Communications can manage projects nationwide, bringing staff together online and improving its ability to win (and service) new business. ■ Zero hosting fees: As a small

and growing business, Just Call Communications enjoys all the benefits of the cloud – the scalability, the storage, but without the hosting fees or high start-up costs.

■ Familiar applications: Allows staff to access their usual business applications - Word, PowerPoint and Excel, from mobile devices.

Content and formatting remain intact once staff return to their desks. n

vodacombusiness.co.za

Office 365 makes sharing

information a pleasure. I don’t

need to be in the office;

I can go on holiday and still take

care of business.

- Peter Fourie, founder, Just Call Communications

18

fiNdiNG adveNtuRe iN duRBaN’s GReeN spaces

Getting out into the open air and enjoying the green spaces that cities

offer is a privilege of which many people do not take sufficient advantage. The city of Durban is distinguished by magnificent beaches that are frequented by many people – both local and visitors. However, less appreciated, but equally superb, are the city’s green spaces that are now being actively promoted and in some cases spruced up for visitors’ pleasure.

The Durban Green Corridor (DGC) is a local economic development initiative delivered by the Duzi uMngeni Conservation Trust (DUCT). The project uses adventure and eco-activities to create jobs, facilitate skills development and uplift communities along the uMngeni River Valley. A variety of activities are on offer to suit all levels of fitness and need for action in the outdoors.

For the more adventurous, the various mountain bike trails offer

an exhilarating and totally new Durban experience for both skilled or novice cyclists. For those who prefer their feet on the ground, the trails – Blue Lagoon, Valley of a Thousand Hills Adventures or Inanda Dam may be enjoyed on foot. Guided or self guided options for the mountain biking and the hiking trails are on offer form DGC.

Twitchers take along your binoculars for a bird watching experience. The Green Corridor initiative has created a guided tour for birders to explore the Umgeni River. The numerous birds that may be seen include Cape Cormorants, Pink-backed Pelicans, Kittlitz’s and White-fronted Plovers, Grey-headed Gulls and Swift Terns as well as many other waterbirds. A special treat is in the much anticipated sighting of an African Finfoot.

Eco tourists will greatly value the Beachwood Mangrove Nature Reserve, the national monument, proclaimed in 1977 is a natural

estuarine ecosystem. Here, red, white and black mangroves along with mudskippers, Fiddler crabs, with their distinctive large claws, dwarf chameleons and a variety of bird life may be viewed while walking along a series of boardwalks. The Beachwood Mangrove Nature Reserve is open to the public on the third Saturday of every month from 8am to 1pm. Alternatively, walks can be booked via The Green Hub and DGC offers tours throughout the week and weekend.

If just unwinding quietly is your intent, then take pleasure in relaxing at one of the many picnic spots at the uMngeni River mouth at Blue Lagoon, inland at Inanda Dam or at iSithumba in the beautiful Valley of a Thousand Hills. Here you will find some of the best picnic spots in Durban, along with breathtaking

cliffs, sparkling dams, cascading waterfalls, green valleys, a winding river and much more.

For those people hoping to learn more about local culture, visit a sacred Shembe Village, eat a meal, stay overnight or meet local Rastafarians that sleep and worship in caves.

More information is available at the Green Hub, which is an innovative, sustainable and environmentally -friendly building located at Blue Lagoon Park. This office houses the information, education and promotion centre for the Durban Green Corridor. www.durbangreencorridor.co.za

Joint Business ventures

The Duzi uMngeni Conservation Trust – Durban Green Corridor is seeking proposals for joint business ventures to be implemented at The Green Hub at Blue Lagoon, Durban in order to maximise the beautiful natural surroundings and current tourism/leisure products offered by The Green Hub. The aim of

these joint business ventures is to establish new ways to attract more visitors and customers to the areas and better serve those that already do frequent the areas. The joint business ventures would also need to be a great value and benefit for the local community which is the driving force behind of all Durban Green Corridor’s work.

To request the full information documents please contact Anna da Graça – anna@durbangreencorridor.co.za Eligible applicants are then invited to attend a briefing on Tuesday 25th November at The Green Hub (31 Stiebel Place, Blue Lagoon, Durban) from 2pm to 3.30pm to inform their applications.

RSVP for the briefing must be received via email to anna@durbangreencorridor.co.za by Fri 21st Nov. After the briefing, all completed applications must be submitted by the deadline date of Friday 5th Dec at 12 noon as directed in the ‘Call For Proposals’ document. n

19

stRateGies foR impRoviNG maNaGeRial leadeRship iN south afRicaJon Taylor Industrial/Organisational Psychologist

The shortage of high quality

managerial and leadership skills is a major

obstruction to economic

growth in South Africa. This is not unique

to South Africa, but it has been exacerbated here by the legacy of apartheid education. A survey of CEOs by the Economist Intelligence Unit in 2006 found that CEOs devote as much as 50% of their time on developing leaders and if leadership development has not been a primary focus of top management, organisations are more likely to make wrong decisions. It is therefore critical for top management to cultivate and nurture leaders with the abilities and skills to manage and lead others effectively.

Research into the factors associated with managerial success indicates that leaders are more intelligent and effective problem solvers. They are ambitious (not just for the sake of earning higher salaries but in order to master new

work experience), and tend to be outgoing and adaptable. Higher levels of intelligence assist them in acquiring more complex job knowledge and acquiring it faster than those who have lower levels of cognitive ability. In addition, they can figure out difficult and unstructured situations better, and adapt to task changes more quickly. Such individuals are likely to be attracted to more complex jobs and leadership challenges, which in turn provide them with the challenge and stimulation they need.

Leaders tend to be open to new experiences and innovation, reflecting a need for variety. They will therefore tend to seek out different roles and will enjoy participating in developmental activities. Going together with these factors is a tendency to be outgoing – this manifests itself as proactivity - spontaneously taking initiatives and assuming increasingly important and more complex roles and responsibilities. Research findings confirm the above, with cognitive ability being the most important contributor to the development of strategic leadership.

Leadership develops through the accumulation of work experience, but it can be accelerated by appropriate training that exposes potential leaders to practical applications of the required

skills. This is based on the well-established principle (Dewey) that knowledge is a by-product of activity. People do things in the world, and this doing results in learning something, which if it is seen to be useful, gets carried along into the next activity. In traditional methods of instruction, things considered worth knowing are handed down from the instructor as disembodied information, and this knowledge is cut off from the activity in which it has its meaning. This results in the very problematic distinction between knowing and doing. We have all seen leaders who claim to know the right thing to do, but their actual behaviour contradicts their stated intentions.

This raises the critical issue of leadership values. Are there universal leadership values that apply in all cultures? Based on over forty years of work in the development of leaders in South African organisations, and drawing on an extensive range of management and leadership theory, Hugo Misselhorn has crystallized this body of knowledge into a programme called “Joint Problem Solving” (see “The Head and Heart of Leadership”, Amazon 2012). In order to successfully use his proposed problem solving model, we need to genuinely engage all relevant stakeholders in finding rational solutions to complex problem situations.

Underlying values of integrity and respect for others are critical for the engagement of others in good faith. However if leaders use their power simply to gain their own political ends, then their leadership values will involve manipulation and deception which will divide and weaken their organizations in the long term.

So are we maximizing our investment in leadership development by selecting those

who will add most value to our leadership pipelines? It is essential to focus leadership development programmes on those who have the capabilities to succeed. Therefore, before promoting staff into challenging new leadership positions, the careful assessment of the above mentioned factors is needed in order to sustain our organisations into the future.. n

jon@adsteam.co.za www.adsteam.net

a GReed theN

I’m not sure whether its myth or in fact true, that when John Harrison created his first

longitude clock it would have been impossible for anyone else to have fathomed how to replicate it. Each time he encountered a miscalculation; instead of going back and adjusting he elected to make an overcorrection on the next layer. What he ended up with was a prototype that only he understood and which had too many layers, fortunately he lived long enough to solve the longitude problem and to make a reproducible clock.

As a nation we have an impressive reputation for creating functional laws, laws often even adopted by other countries. Recently, the National Credit Act has widely been praised for mitigating the effects of the global recession on the country. What we perhaps aren’t able to do adequately is police these laws satisfactorily, perhaps I should say, what we aren’t ‘ABIL’ to do… or is that being a tad impertinent.

The FAIS act was introduced to prevent the unscrupulous

financial advisor or intermediary from taking advantage of the uninformed. The intention was to create transparency regarding services rendered and disclosure regarding the costs of such services. Advisors and intermediaries had to prove themselves to be of a certain salt in order to give advice, and service the clients adequately. The man on the street would now be protected…well not actually him because he doesn’t really have any assets or investment portfolio, apart from his cardboard sign; rather, the man in the house with the 1.75 cars 2.37 children 3.65 pets and 1.1 wives (for the purposes of this article ‘man’ can be read as ‘woman’ and ‘wives’ as ‘husbands’ however if that exchange is made the number 1.1 must be read as 1). I think, like Harrison I may now need a correction.

A major achievement of Act 37 of 2002 was the creation of an additional layer in the financial services industry, compliance. It became law to have a compliance officer (you could elect to be your own if you had the requisite time). Generally, compliance officers

are qualified legal people and qualified legal people generally have more than 1.75 cars. In addition, there is also a greater workload that accompanies the legal requirements in terms of record keeping, report submitting and confirmation to the client. This may lead to the need for more staff and that’s not a bad thing because it has created more employment. But unless the salary expense of the few is maintained and divided amongst greater numbers, additional costs will also be incurred here. Ultimately these expenses must be made up and there’s only one place that this can come from.

There is nothing wrong with the law, but isn’t it logical. Isn’t it the right thing to do to not ‘rip’ someone off. To be careful with their money, to not exploit any lack of understanding when it comes to products of a financial nature. I believe that the majority of service providers are made that way, I believe too that these are also the ones that will abide by the rules, that will submit returns on time, that will struggle slightly more to keep afloat.

Those who took advantage previously will spend their hours finding new ways to abuse the system. They are made differently and more than likely also have more than 1.75 cars. The odd thing about laws is that they don’t prevent things, most of us hopefully are aware that murder is wrong and humanity was hopefully aware of the fact prior to the law being written. I realise that the law is more complicated than what I am implying and that parameters need to be created in order to successfully prosecute. The point is that in some ways the laws may actually force the hand of the previously holier than thou who has now become lowlier, and how. The law birthed by the greed of the few for the few is now the enemy of the many.

So this leads us back to the policing, without the policing the laws mean very little… We live in a society that is more inclined to a perfect crime, constantly reminded of how cool it is to live on the edge and how boring it is to abide by the rules. There’s also the case to be made for over protection, if the consumer doesn’t

need to think then they probably won’t. The spiral of ignorance will increase and the man in the house will become more susceptible to infection.

There’s always a problem when a law acts as a restraint to business development; a bit of a catch 22 exists currently, where our economy requires stimulation to grow and regulation so as not to implode, decisions need to be made in the name of progress. The notion of protecting the ‘man in the house’ is noble, no one can deny but ironically it’s he who will pay in the end.

Maybe we aren’t going back and fixing the real problem maybe we’ve created a bit of a John Harrison legal system, one that has created an overcomplicated layered society that’s forgotten what the point was in the first place. n

Robin Ackerman Operations Manager Tel: 0861 373 257 Fax: 031 701 6537 www.threepeaks.co.za robina@threepeaks.co.za

The 2014 DCCI Entrepreneur of the Year is Dave Pons from Ceiling in a Can.

20

Caption:

ouR leadeRship NaRRative has to chaNGeOften when

we think of and discuss

leadership it is mostly in the context of

positions people hold in society or in organisations. Unless someone holds a seemingly important

position they aren’t considered as leaders, resulting in the failure to recognise the true leadership potential that exists within all of us.

Leadership occurs first and foremost at an individual level through knowing and accepting ourselves, which gives us the confidence to respond appropriately to personal as well as societal situations.

The idea that leadership is the preserve of a few, results in many people not developing leadership behaviours and skills that would benefit themselves and their environments. They wait for someone to tell them what to do or not to do; they expect things to be equal before acting on anything. On the other hand, confident people do not wait for someone to put a title on their foreheads before they act.

If we all understand that leadership potential exists within each one of us, we would accept the responsibility to take charge of deciding what we want, how to work towards achieving this and more importantly, how we could help others, thereby exercising leadership at a personal level.

Societal challenges are so huge it’ll be impossible to overcome them if we rely only on few individuals who are accorded leadership status based on position. Shared leadership will become a reality once we encourage and promote leadership at an individual level.

If leadership is about taking accountability and responsibility for our actions and our destiny, which includes society or the environment at large, imagine if we all did this. What would a workplace, school, university, home, and public places look like?

There is a need for all to realize the unintended consequences of limiting leadership to one or few people, based on positions they hold, which is that it suppresses development of leadership capability of the majority with dire consequences. Often these few individuals end up being so thinly spread they are rendered ineffective and incapable of executing

plans meant to bring about positive change.

In the work context, understanding that leadership has nothing to do with position, creates an environment of openness, trust and integrity in which the firm thrives on the creative talents of women and men working

therein. Individuals so empowered are willing to take risks where others seek conformity and comfort.

Again in the work context, taking risks would involve allowing other people to take charge without feeling threatened. Leaders would risk their careers by challenging

the status quo whilst respecting all involved, they would make decisions without having all the pieces in place.

Our leadership narrative has to change if we are to unleash the immense power that each individual possesses in our quest

to turn around the fortunes of organisations we work for and societies we live in. n

Musa Makhunga, Managing Director Mobile: +27 83 2516704 Fax to email :+2786 6321426 musa@hrmatters.co.za, www.hrmatters.co.za