Opportunity Issue 95
Quarterly journal for business and industry in South Africa www.opportunityonline.co.za NOV/DEC 2020 / JAN 2021 • ISSUE 95 GOVERNMENT, LABOUR, BUSINESS Stop, listen and hear our laureate leaders: PUT THE NATION’S INTEREST FIRST Dr Mamphela Ramphele Busisiwe Mavuso
- Page 2 and 3: LEADING THE FLEET PROFILE Strategic
- Page 4 and 5: Contents ISSUE 95 | NOV/DEC 2020 /
- Page 6 and 7: EDITOR'S NOTE Time for transformati
- Page 8 and 9: FOREWORD We don’t know, what we d
- Page 10 and 11: TRADE Unlocking trade and transport
- Page 12 and 13: OIL AND GAS The start of something
- Page 14 and 15: OIL AND GAS Refining 2021: who will
- Page 16 and 17: LAUREATE LEADERS Heal our people, l
- Page 18 and 19: LAUREATE LEADERS _____ __ ___ __ _
- Page 20 and 21: AGRICULTURE Two truths about Africa
- Page 22 and 23: LEGAL SERVICES Lawful value Noko Ma
- Page 24 and 25: TECHNOLOGY Operational excellence i
- Page 26 and 27: TECHNOLOGY while some CISOs increas
- Page 28 and 29: TRANSPORT How to make PUBLIC TRANSP
- Page 30 and 31: TRANSPORT less frequent service may
- Page 32 and 33: ENGINEERING AND CONSTRUCTION Surviv
- Page 34 and 35: ENGINEERING AND CONSTRUCTION compan
- Page 36: Come and explore the Diamond Fields
Quarterly journal for business and industry in South Africa<br />
www.opportunityonline.co.za<br />
NOV/DEC 2020 / JAN 2021 • ISSUE <strong>95</strong><br />
GOVERNMENT,<br />
LABOUR, BUSINESS<br />
Stop, listen and hear<br />
our laureate leaders:<br />
PUT THE NATION’S<br />
INTEREST FIRST<br />
Dr Mamphela Ramphele<br />
Busisiwe Mavuso
LEADING<br />
THE FLEET<br />
PROFILE<br />
Strategically located on the West Coast of Africa in Walvis Bay, Namibia,<br />
Namdock is a leader in the West African ship repair market and offshore oil<br />
and gas sector, having gained global recognition for its extensive dry dock<br />
capacities and exceptional client service – even in the face of a global pandemic.<br />
Namdock, or EBH Namibia as it was formerly<br />
known, was founded in 2006 as a joint venture<br />
with the Namibian government, represented<br />
by the Namibian Ports Authority (NAMPORT).<br />
Latterly, a shareholding was taken by a South<br />
African company. In 2018, the South African company<br />
relinquished all shareholding in the former EBH Namibia<br />
when the foreign shareholding was transferred to the<br />
EBH Consortium, a group comprised of prominent<br />
Namibian business leaders. As a result, the organisation<br />
became truly Namibian, with its shareholding held<br />
entirely by NAMPORT and the EBH Consortium.<br />
To reflect this new reality, it was decided to rebrand the<br />
company as Namdock, a name that truly reflects its wholly<br />
Namibian composition. With effect from 31 August 2019,<br />
EBH Namibia changed its name to the Namibia Drydock<br />
and Ship Repair Company Pty Ltd (Namdock). Despite<br />
a drop in the global oil price and its negative knock-on<br />
effect on the offshore repair industry between 2015 and<br />
2019, a still-volatile global oil price, and the knockon<br />
effect of the global Covid-19 pandemic in 2020,<br />
Namdock and its three floating docks continue to<br />
attract local and international clients. However,<br />
there is more to Namdock’s success than a mere<br />
economic recovery.<br />
service and efficiency; but also our inherently strong<br />
relationship with our people and pride in our country,”<br />
says Namdock’s Acting CEO Heritha Nankole Muyoba.<br />
As such, Namdock enjoys the full support of its<br />
majority shareholder, the Namibian Ports Authority<br />
and, by extension, that of the Namibian government. By<br />
reciprocation, Namdock fully supports Namibia’s Vision<br />
2030 and the country’s sustained industrialisation drive.<br />
The next major advantage that Namdock possesses is<br />
that it is situated in Namibia. This country stands out on<br />
the African continent as having a very stable political<br />
dispensation, first-rate and efficiently functioning<br />
infrastructure and a customs and logistics authority that<br />
is user-friendly, corruption-free and swift in operation.<br />
TOP DOCK FACILITIES<br />
It is reported that while there are many ship repair<br />
yards along the West Coast of Africa, in the main, should<br />
a major component be needed, importing such an item<br />
___ __<br />
Strategically situated<br />
in Walvis Bay, Namibia,<br />
the company prides<br />
itself on its on-time<br />
delivery and track<br />
record of consistency<br />
and reliability, making<br />
Namdock a trusted<br />
brand within the<br />
international maritime<br />
sector. A projectorientated<br />
company,<br />
Namdock offers<br />
holistic solutions to<br />
meet all its clients’<br />
requirements.<br />
NAMDOCK’S STRENGTH IS LOCAL<br />
As a nation, Namibia is fiercely proud of its<br />
indepen-dence, and is also strongly focused<br />
on driving economic self-sufficiency and<br />
industrialisation. “We have therefore adopted the<br />
slogan ‘Our Strength Is Local’, which not only<br />
encapsulates our operational ethos of excellence,<br />
Aerial view of Namdock’s<br />
three floating docks.
and having it delivered to the dockside at one of these<br />
yards could take a month or two. By contrast, Namdock,<br />
with the support of the country’s enlightened customs and<br />
logistics system, is able to have similar components on the<br />
dockside within three to four days.<br />
In fact, with three fully operating and well-maintained<br />
floating dry docks, Namdock has the capability to repair<br />
and maintain vessels up to a size that would include<br />
approximately 70% of the global shipping fleet. In addition,<br />
Namdock has reduced its average turnaround time for<br />
ship repairs from 16 days to an extremely impressive 12-<br />
day average.<br />
Namdock’s own facilities include three well-maintained<br />
floating dry docks, seven cranes as well as fully-equipped<br />
workshops for carrying out all aspects of marine repair<br />
and maintenance. As Namdock is part of Namport, which<br />
oversees the port of Walvis Bay, this allows Namdock<br />
access to secure berthing space with the quayside depth<br />
of 12m. In addition, Namdock has access to Namport’s<br />
synchro lift, a facility that can accommodate vessels up to<br />
2 000 tons displacement, 80m in length and 12m in width<br />
overall. The synchro lift area has four 80m repair quays of<br />
8m draft which Namdock uses for alongside-pier repairs<br />
and maintenance. The large natural anchorage at Walvis<br />
Bay has a 14m depth.<br />
SERVICES AND TECHNICAL SKILLS<br />
The removal of marine growth and re-coating of ships’<br />
hulls is a key component of Namdock’s services. This not<br />
only preserves the value of the vessel but also, by reducing<br />
drag in the water, lowers its operating costs.<br />
Namdock employs highly skilled trade professionals<br />
who are dedicated and experienced in a wide variety of<br />
trades, from rigging, piping and coating to fabrication,<br />
carpentry, electrical and propulsion. Namdock’s trade<br />
professionals are well trained to international standards.<br />
In addition to Namdock’s fully equipped workshops<br />
where all the above services can be carried out, the<br />
company constantly works with a range of local highly<br />
experienced and trusted subcontractors and suppliers,<br />
many of the latter from renowned international OEMs.<br />
Clients can therefore access every possible ship repair<br />
service that they might need from Namdock, conducted<br />
in a range of extensive and well-equipped dedicated<br />
fabrication, propulsion, mechanical, electrical, valve and<br />
carpentry workshops, to provide repair and maintenance<br />
services for all potential requirements.<br />
‘SHIPSHAPE’ SAFETY<br />
At Namdock, safety is always the prime and abiding<br />
consideration. For this reason, safety awareness is integral<br />
to Namdock’s management ethos, and forms part of its<br />
day-to-day operations. As such, the company constantly<br />
focuses on creating and enforcing safe and responsible<br />
working conditions for all employees, suppliers and clients<br />
through its safety processes, procedures, certifications<br />
and ongoing training.<br />
The Namdock team were charged with not only restoring the SKD Jaya<br />
to seaworthy condition, but also ensuring that it was safe and fully<br />
compliant with maritime legislation. This project involved the reactivation<br />
of the SKD Jaya rig, a semi-submersible tender assisted drilling unit.<br />
MARINE AND LAND-BASED DIVERSIFICATION<br />
Namdock is currently in the process of diversifying<br />
both in the maritime field and in the land-based heavy<br />
engineering arena. In terms of its marine services, the<br />
company has entered into the field of maintaining and<br />
repairing submersibles and remotely-operated vehicles.<br />
In terms of land-based heavy engineering, Namdock,<br />
as Namibia’s largest engineering company, has the<br />
facilities, design, project management and fabrication<br />
skills to tackle projects of any magnitude.<br />
“Marine engineering has to adhere to exceptionally<br />
high levels of competency, and we would be pleased<br />
to share this skill level with, for example, the coastal<br />
mining industry in Namibia and our neighbouring<br />
countries,” continues Nankole Muyoba.<br />
IN CONCLUSION<br />
“To sum up, at Namdock, we are globally competitive<br />
while also proudly Namibian,” states Nankole Muyoba.<br />
“Our company is a prized national asset, wholly-owned<br />
by all-Namibian entities. With this in mind, Namdock<br />
is sailing ‘full steam ahead’, and navigating a proactive<br />
voyage forward which will benefit not only our valued<br />
clients, our company and our staff, but also the people of<br />
Walvis Bay, and Namibia as a whole,” she concludes.<br />
___ __<br />
Namdock is a highly<br />
successful smart<br />
partnership between<br />
the Namibian<br />
government and<br />
the private sector<br />
and provides the<br />
international shipping<br />
and local industry<br />
with a full-house<br />
capacity in all aspects<br />
of ship repair and<br />
land-based heavy<br />
engineering.<br />
Team work in action! Namdock's take on the popular Jerusalema dance 2020.<br />
PROFILE
Contents<br />
ISSUE <strong>95</strong> | NOV/DEC 2020 / JAN 2021<br />
06<br />
09<br />
10<br />
12<br />
14<br />
18<br />
22<br />
26<br />
30<br />
SACCI FOREWORD<br />
How will South Africa survive this year?<br />
NEWS & SNIPPETS<br />
What has been and what’s to come<br />
THE START OF SOMETHING BIG<br />
If the South African gas market is to take off and thrive,<br />
significant drilling has to take place, says the new CEO<br />
of Petroleum Agency SA, Dr Phindili Masangane<br />
REFINING 2021: WHO WILL BE IN THE GAME<br />
How do oil refineries survive and sustain profitability<br />
in a volatile market?<br />
HEAL OUR PEOPLE, HEAL OUR LAND<br />
Busisiwe Mavuso and Dr Mamphela Ramphele<br />
share their perceptions on how to transform South Africa<br />
TWO TRUTHS ABOUT AFRICA’S AGRICULTURE<br />
Transforming the agricultural value chain is central to any progress in Africa<br />
OPERATIONAL EXCELLENCE IN INFORMATION SECURITY MANAGEMENT<br />
What are organisations doing to ensure that they are securing their data?<br />
HOW TO MAKE PUBLIC TRANSPORT AN ATTRACTIVE OPTION IN YOUR CITY<br />
Introducing the factors needed to realise public transport’s full potential<br />
SURVIVAL STRATEGY<br />
Forward-thinking engineering and construction companies are weathering the<br />
Covid-19 storm by rethinking their strategic choices<br />
10<br />
22<br />
14<br />
26<br />
2 | www.opportunityonline.co.za
LEADERS IN CHEMICAL SUPPLY<br />
INDUSTRIAL CHEMICALS<br />
ChemiCorp is one of the leading raw chemical suppliers<br />
in South Africa.<br />
MINING CHEMICALS<br />
Chemicorp understands the urgency at which mines<br />
operate. We ensure we have stock available at all times.<br />
FOOD AND BEVERAGE INDUSTRY<br />
We supply chemicals of the highest quality suitable for the<br />
manufacture of food products for human consumption.<br />
PAINT INDUSTRY<br />
ChemiCorp is a one-stop-shop for all your architectural<br />
paint manufacturers.<br />
WATER TREATMENT CHEMICALS<br />
ChemiCorp is well-positioned in the water treatment<br />
business and technically geared to tailor-make solutions<br />
to any water treatment requirements.<br />
www.chemicorp.co.za<br />
AGRICULTURAL PRODUCTS<br />
Our agricultural product department is one of the most<br />
innovative. This is mainly due to our partnership with Dagutat<br />
Science, a biological product manufacturer.
EDITOR'S NOTE<br />
Time for<br />
transformation<br />
Covid-19 has exposed just how fractured South Africa’s democracy is,<br />
and how unequal we are as a society. We need rational, pragmatic<br />
choices from government, labour and business, says Busisiwe<br />
Mavuso, CEO of Business Leadership South Africa, on page 14. And<br />
so, in this issue of <strong>Opportunity</strong> magazine, we set out to offer practical<br />
advice in the sectors that the pandemic has impacted most on.<br />
The conventional wisdom of vertical integration as the ideal and sustainable<br />
model for oil refiners is being challenged. Choosing the right operating<br />
model and the required level of integration across the value chain will be<br />
crucial for improving margins and sustaining profitability in the volatile oil<br />
and gas market. Read more on page 12.<br />
If the South African gas market is to take off and thrive, significant<br />
drilling has to take place, says the new CEO of Petroleum Agency SA, Dr<br />
Phindili Masangane. A major discovery has been made at a site south-east<br />
of Mossel Bay called Brulpadda. Dr Masangane says, “The recent discovery<br />
by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant<br />
step in that direction.”<br />
Agricultural transformation in Africa must build social cohesion, create<br />
beneficial continental trade, provide a platform for global exports and, most<br />
importantly, help generate millions of jobs while pulling subsistence farmers<br />
out of poverty (page 18). <strong>Opportunity</strong> also looks at how we can improve<br />
public transport (page 26) and the engineering and constructions sectors<br />
(page 30).<br />
We all know that it is time to transform South Africa; perhaps Dr Mamphela<br />
Ramphele’s words (page 16) offer a place of where to begin: “Covid-19 has<br />
created an urgent imperative to transform our inequitable society into one<br />
governed by the values of ubuntu – that would help us understand that there<br />
is no ‘I’ without ‘We’. An ubuntu value-based society, with citizens that are<br />
liberated from the impositions of inferiority and superiority complexes, is<br />
urgently needed. Such a society would be driven by healthy relationships with<br />
self, family, community and wider society. Leadership that is self-liberated<br />
would emerge to lead the rebuilding of our broken public institutions in line<br />
with ubuntu values and the prescriptions of our Constitution.”<br />
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4 | www.opportunityonline.co.za
TEXTILES<br />
The beauty<br />
of mohair<br />
With more than 30 years of experience in the South African mohair and textile industry,<br />
South African Mohair Industries Limited (SAMIL) Natural Fibres has a fully integrated<br />
value chain including farming, processing, trading, yarn spinning and dyeing.<br />
<strong>Opportunity</strong> sat down with Michael Brosnahan,<br />
the CEO of SAMIL, to find out more about the<br />
mohair and textile industry.<br />
How do you view the short-, medium- and<br />
long-term future for SAMIL and the mohair industry?<br />
SAMIL and the mohair industry has suffered – and<br />
continues to suffer in the short term – depressed trading<br />
conditions due to Covid-19, but believe me, the mohair<br />
industry is as strong and resilient as both the fibre itself<br />
and the brave, industrious farmers who produce this<br />
magnificent fibre.<br />
What are the biggest challenges caused by Covid-19?<br />
In my view, the biggest challenges caused by Covid-19<br />
are related to ensuring the health and safety of all our<br />
employees while endeavouring to keep our business<br />
going. We have put in place, sadly at not too small a<br />
cost, all the measures required to keep our people as<br />
safe as practically possible while we continue to supply<br />
mohair to the world.<br />
Have any opportunities emerged from Covid-19?<br />
There are always opportunities, if you look hard<br />
enough. The opportunities for SAMIL came through the<br />
lockdown, as unbelievable as that may sound. During<br />
the lockdown, crafters and knitters globally took refuge<br />
in their art, some of them returning to their passion due<br />
to the extra time on their hands. The demand for hand<br />
knitting and crochet yarns increased dramatically, with<br />
the spin-off, please forgive the pun, being that many<br />
of the knitters and crafters have rediscovered their<br />
passion and now make time in their busy schedules to<br />
continue enjoying their hobby.<br />
What was required for SAMIL to become Responsible<br />
Mohair Standard (RMS) certified?<br />
SAMIL is well structured and organised, so the upgrade<br />
to RMS certified was relatively painless. This was due<br />
mainly to the dedication of my staff, in particular Evert<br />
Vermeulen, the head of Mohair Tops Trading Division who<br />
spearheaded the task team on implementation. The detail<br />
of what is required to become certified is contained in<br />
the RMS guidelines available from the Textile Exchange.<br />
What value does the RMS accreditation provide for<br />
mohair suppliers, textile manufacturers, retailers<br />
and consumers?<br />
The RMS accreditation is critical to all associated<br />
with the mohair value chain. The requirement for the<br />
certification is driven by the new environmentally<br />
consciousness consumer, who makes purchase<br />
decisions not only on price but moreover on their<br />
understanding of the ethicality of the manufacturing<br />
process. They want to know that the goods they intend<br />
to purchase have not harmed the environment in any<br />
way. This concern extends further to the welfare of<br />
the people producing the items and, in our case, the<br />
treatment of the animals who have produced the raw<br />
material for the goods.<br />
_____ ___ __ _ _<br />
The requirement for<br />
the RMS certification<br />
is driven by the new<br />
environmentally<br />
consciousness consumer<br />
___ __ __ ___ __ _ _<br />
What are the prospects for RMS?<br />
In my view, the RMS is not a fad, it is reality and it is<br />
here to stay. Very soon, mohair that is not produced by<br />
an RMS-accredited farmer will no longer be marketable.<br />
Today’s young consumer is not prepared to purchase<br />
goods that impact the world environment and, I am<br />
sure, they will instil this value in their children.<br />
___ __<br />
Michael Brosnahan,<br />
CEO, SAMIL<br />
____ __<br />
Mohair is a renewable<br />
natural resource<br />
that contributes to<br />
the Karoo’s longterm<br />
prosperity<br />
www.opportunityonline.co.za | 5
FOREWORD<br />
We don’t know,<br />
what we<br />
don’t know<br />
How does South Africa come out of the three evils of a recession,<br />
a ratings agency downgrade and the Covid-19 pandemic lockdown?<br />
As we ended 2019, the business community<br />
had laid plans for the New Year ahead, not<br />
knowing what was coming. Covid-19 laid bare<br />
our forecasting and plans for the road ahead.<br />
Within months South Africa would<br />
experience an unprecedented loss of jobs, businesses<br />
closing and austerity measures that cut to the very bone<br />
of economic activity.<br />
Social distancing became a norm, wearing masks and<br />
sanitising surfaces and hands is now a legal obligation<br />
in public spaces. Who would have thought this was<br />
coming just months earlier?<br />
Over the past eight months, SACCI has witnessed the<br />
damage within its own ranks. Our Trade Conditions<br />
Survey, which has for many years served as a barometer<br />
of the business community, lost some of the participants<br />
to the severe economic climate. According to the latest<br />
Quarterly Labour Force Survey Quarter 2 released by<br />
Statistics South Africa on 29 September 2020, the South<br />
African economy shed 2,2-million jobs.<br />
Against this background, SACCI had to do something<br />
to turn things around. We cannot rely on government to<br />
pull the country out of this malaise so the SACCI Board<br />
gave a directive that SACCI must filter this down to<br />
grassroots level by implementing programmes of action<br />
to assist our business sectors on a trajectory towards<br />
economic growth and sustainability.<br />
___ __ ___ __ _ _<br />
We cannot rely on<br />
government to pull<br />
the country out of<br />
this malaise so the<br />
SACCI Board gave a<br />
directive that SACCI<br />
must filter this down<br />
to grassroots level<br />
___ __ ___ __ _ _<br />
6 | www.opportunityonline.co.za
FOREWORD<br />
While we know that this is no easy task ahead, SACCI<br />
decided that it is the only way in assisting government<br />
to bring the economy back on stream and create jobs.<br />
The SACCI Board decided that 11 work streams<br />
should be created. The three fundamental areas raised<br />
in the formulation of an action plan must be centred on:<br />
Inclusivity<br />
Innovation<br />
Collaboration<br />
Significant among these action programmes are<br />
small business, mining, construction, manufacturing<br />
and agriculture.<br />
The Terms of References were developed, and<br />
support functions engineered from within SACCI’s own<br />
membership and the SACCI team.<br />
Leading experts from various business sectors,<br />
institutions and academia have volunteered to give of<br />
their time and expertise to help the country get back<br />
on its feet.<br />
This is a giant task but not impossible to achieve<br />
as the commitment is solid, and the involvement has<br />
been forthcoming as the people involved see this as<br />
impacting at a granular level and hence they are keen<br />
to participate.<br />
▲ ▲ ▲<br />
___ ___ __ _ _<br />
The road ahead will<br />
take us all on a path<br />
where hard decisions<br />
will need to be made<br />
___ __ ___ __ _ _<br />
The directive is that milestones<br />
will be set and reviewed regularly<br />
to track progress and ensure that<br />
the various workstreams remain<br />
on track.<br />
The road ahead will take us all<br />
on a path where hard decisions<br />
will need to be made. But, with<br />
the quality of people committed<br />
to this project, and the gravitas<br />
that these people carry, we are<br />
confident that changes will be<br />
made to stimulate the economy<br />
and our business community will<br />
work together with government,<br />
labour and civil society.<br />
These partnerships will ensure<br />
that the country’s economy grows<br />
from a solid platform and will be more resilient to the<br />
shocks of the past and future. By charting a roadmap,<br />
we will ensure a positive path, and produce gains in<br />
the sectors affected.<br />
SACCI further believes that this will build the<br />
confidence in the country to the extent that investors<br />
will review their strategies and return to South Africa<br />
as an investment destination.<br />
We conclude with an extension of our encouragement<br />
to government to remain firm in its commitment to root<br />
out and deal with corruption that has blighted our public<br />
sector and our business community. SACCI believes<br />
these workstreams have the opportunity to raise the<br />
hopes of all South Africans for a brighter future and<br />
together we can turn our economy around.<br />
Alan Mukoki,<br />
SACCI CEO<br />
www.opportunityonline.co.za | 7
TRADE<br />
Unlocking trade and transport<br />
facilitation bottlenecks<br />
Botswana, Namibia, South Africa and beyond.<br />
The governments of Botswana, Namibia and<br />
South Africa, recognising the need to eradicate<br />
poverty and place their countries on the path<br />
of sustainable economic development and<br />
growth, established the Trans Kalahari Corridor<br />
Management Committee (TKCMC). This move was<br />
influenced by the need to achieve the transport and<br />
trade facilitation objectives as well as deeper regional<br />
integration as espoused in the SACU, SADC and AUDA<br />
– NEPAD Agenda. In 2007, the Trans Kalahari Corridor<br />
Secretariat (TKCS) was established to coordinate the<br />
functions and decisions taken by the TKCMC. South<br />
Africa is the current chair of the TKCMC.<br />
The objectives of the TKCMC are to simplify crossborder<br />
transactions and customs operations along the<br />
Corridor; facilitate the movement of goods and persons<br />
on the TKC by simplifying and harmonising the<br />
requirements and controls that govern the movement of<br />
goods and persons with a view to reducing transportation<br />
costs and transit times; integrate the spatial, economic<br />
and transportation planning for the contracting<br />
parties; promote deeper integration by harmonisation<br />
of conflicting regulations and policies of the three<br />
countries in line with the SADC Regional Indicative<br />
Strategic Development Plan (RISDP); integration of<br />
trade, transport, logistics and travel systems of the three<br />
countries with the objective of providing quality services<br />
at minimal costs, thereby increasing competitiveness of<br />
the SADC and SACU region.<br />
In 2016, a new strategic plan was developed with<br />
a goal to have the TKCMC be the leading corridor in<br />
trade facilitation to achieve socio-economic integration<br />
and development. The strategy is underpinned by four<br />
pillars which are organisational efficiency; border<br />
management; stakeholder management; and safety and<br />
security. The strategic objectives for the TKCMC work<br />
programme include accelerating economic integration<br />
and development; enhancing stakeholder capacity; having<br />
a responsive border regulatory framework; as well<br />
as improving border infrastructure, road safety and<br />
security along the TKC, road infrastructure, stakeholder<br />
relations and communication infrastructure.<br />
The TKCMC work programme is a robust trade<br />
facilitation programme that supports effective trade<br />
facilitation and eventually lower trading costs. The<br />
TKCMC is cognisant of the fact that transport operators<br />
and traders choose their routes based on the performance<br />
of the corridor, and these performance indicators<br />
are the distance-related operating costs; travel time;<br />
predictability of transit; reliability of services along the<br />
corridor; safety and security as well as the “hospitability”<br />
of the route. These are therefore paramount for the TKC<br />
to remain a corridor of choice and thereby achieve its<br />
vision of being a leading corridor in trade facilitation for<br />
socioeconomic integration and development.<br />
Covid-19 impacted the TKCMC work programme. Most<br />
programmes could not be executed because negotiations<br />
could not continue as the member states’ focus was on<br />
addressing the spread of the coronavirus. Movement<br />
on the corridor was also affected as borders were only<br />
open for essential goods. However, as restrictions eased<br />
all types of cargo could move. The TKCS is optimistic<br />
that the downward spiral in growth and volumes due to<br />
Covid-19 by all TKCMC member states and the region<br />
will change for the better as countries ease their Covid-19<br />
restrictions. This recovery will be influenced by:<br />
• Regional integration (harmonisation of conflicting<br />
regulations. Covid-19 has exposed this problem)<br />
• Development of regional industrial policy (accelerate<br />
the industrialisation with a focus to improve local<br />
production capacity within the region)<br />
• Innovation in the facilitation of trade and SMART<br />
corridors (less human contact is required, virtual<br />
queuing of vehicles at the borders, pre-clearance,<br />
cargo and vehicles)<br />
• Linking Africa to allow Africa to trade with Africa<br />
• African Continental Free Trade Area (AfCFTA)<br />
• Need to build back better with private sector as the<br />
driving force. The resilience of the private sector<br />
• Deliberate effort to support private sector empowerment<br />
recovery schemes (youth and women).<br />
The TKCMC’s<br />
objectives<br />
are to<br />
simplify<br />
crossborder<br />
transactions<br />
and customs<br />
operations<br />
along the<br />
Corridor<br />
___ __<br />
Leslie Mpofu,<br />
Executive Director<br />
8 | www.opportunityonline.co.za
BUSINESS UPDATE<br />
BUSINESS UPDATE<br />
News & snippets<br />
Industry Industry insights insights from from the the past past quarter quarter<br />
Volatility in in manufacturing<br />
The<br />
The<br />
latest<br />
latest<br />
production<br />
production<br />
data<br />
data<br />
for<br />
for<br />
the<br />
the<br />
manufacturing<br />
manufacturing<br />
sector released by Statistics South Africa reflects<br />
the<br />
the<br />
resilience<br />
resilience<br />
of<br />
of<br />
the<br />
the<br />
Metals<br />
Metals<br />
and<br />
and<br />
Engineering<br />
Engineering (M&E)<br />
(M&E)<br />
cluster<br />
cluster<br />
of<br />
of<br />
sub-industries<br />
sub-industries<br />
on<br />
on a<br />
month-on-month<br />
month-on-month basis,<br />
basis,<br />
says says Steel Steel and and Engineering Engineering Industries Industries Federation Federation of of<br />
Southern Southern Africa Africa Chief Chief Economist Michael Ade. The The<br />
figures painted a worrisome annual trend as the<br />
recession deepened amid the pandemic. Unadjusted<br />
recession deepened amid the pandemic. Unadjusted<br />
manufacturing<br />
manufacturing<br />
production<br />
production<br />
decreased<br />
decreased<br />
on<br />
on<br />
an<br />
an<br />
annual<br />
annual<br />
basis<br />
basis<br />
by<br />
by<br />
10,8%<br />
10,8%<br />
in<br />
in<br />
August<br />
August<br />
when<br />
when<br />
compared<br />
compared<br />
with<br />
with<br />
August<br />
August<br />
2019.<br />
2019.<br />
The<br />
The<br />
largest<br />
largest<br />
contributors<br />
contributors<br />
to<br />
to<br />
this<br />
this<br />
decrease<br />
decrease<br />
year-on-year<br />
year-on-year<br />
in<br />
in<br />
the<br />
the<br />
M&E<br />
M&E<br />
industry<br />
industry<br />
were<br />
were<br />
the<br />
the<br />
motor<br />
motor<br />
subindustries,<br />
which which recorded recorded -30.6%, -30.6%, followed followed by by the the<br />
sub-<br />
steel, metals and and machinery sub-industries at at -11.7%. -11.7%.<br />
Supporting the DRIVING South African SOUTH aerospace, AFRICA’S defence AEROSPACE and marine INDUSTRY manufacturing sectors<br />
The Aerospace Industry Support Initiative (AISI) is a South<br />
African government initiative with the specific aim of improving<br />
the competitiveness of the local aeronautics, space, defence<br />
and marine advanced manufacturing sectors.<br />
The AISI takes its strategic direction from government’s<br />
objectives with a specific emphasis on industrialisation of<br />
technology and technology-based supplier development.<br />
The Department of Trade, Industry and Competition<br />
(the dtic) utilises the CSIR and its position in the National<br />
System of Innovation (NSI) as an independent, strategic<br />
directed R&D entity to give industry access to national<br />
expertise and infrastructure in order to improve its capabilities<br />
and offerings.<br />
Established in in 2006, the the AISI AISI has has supported the the South South African African<br />
industry both directly and and indirectly through interventions<br />
implemented by by the the following programmes:<br />
• Technology-based Technology-Based Supplier Development<br />
• Industry Development and Technology Support<br />
• Marine Manufacturing, Associated Services and and Other<br />
Manufacturing Industries<br />
Supplier Development Programme<br />
• Supplier Sector Strategic Development Support<br />
Programme<br />
Initiatives<br />
• Sector Coordination, Strategic Promotion Support<br />
Initiatives and Awareness<br />
See • Coordination, page 9 of this issue Promotion for<br />
more and information Awareness about AISI<br />
Building PPE capacity<br />
Owned and managed by Ntombekaya (Ntombie)<br />
Nonxuba, Rise Uniforms is a manufacturer and<br />
supplier of high-quality uniforms, corporate wear<br />
and medical PPE. Based in Philippi, Cape Town,<br />
they manufacture locally as per client specifications<br />
and supply nationally. In operation since 2007 and<br />
formally registered in 2010, the company has an<br />
established track record of consistently supplying<br />
uniforms to to well-known brands such as Pick n Pay<br />
and and Boxer superstores.<br />
Beyond simply meeting a product need, Rise<br />
Uniforms is is 100% black female-owned and<br />
employs employs 52 52 people from the township. With a<br />
strong strong desire desire to to see see transformation in in the Philippi<br />
area,<br />
area,<br />
Nonxuba<br />
Nonxuba<br />
deliberately<br />
deliberately<br />
chose<br />
chose<br />
this<br />
this<br />
location<br />
location<br />
for the production facility and offers a significant<br />
number<br />
number<br />
of<br />
of<br />
employment<br />
employment<br />
and<br />
and<br />
business<br />
business opportunities<br />
opportunities<br />
in<br />
in<br />
an<br />
an<br />
area<br />
area<br />
that<br />
that<br />
has<br />
has a<br />
staggering<br />
staggering 38%<br />
38%<br />
unemployment rate. They also offer training<br />
opportunities to groups of women. Over the years,<br />
opportunities to groups of women. Over the years,<br />
Rise has improved their production processes and<br />
Rise has improved their production processes and<br />
built their production capacity substantially.<br />
built their production capacity substantially.<br />
Find us on www.chemicorp.co.za
OIL AND GAS<br />
The start of<br />
something<br />
Light oil and gas condensate<br />
discoveries could be a<br />
game-changer for South<br />
African oil and gas<br />
BiG<br />
If the South African gas market is to take off and<br />
thrive, significant drilling has to take place, says<br />
the new CEO of Petroleum Agency SA, Dr Phindili<br />
Masangane. A major discovery has been made at a<br />
site south-east of Mossel Bay called Brulpadda. Dr<br />
Masangane says, “The recent discovery by Total and its<br />
JV partners in Block 11B/12B (Brulpadda) is the first<br />
giant step in that direction.”<br />
Total’s first attempt to drill the Brulpadda Prospect<br />
in 2014 was suspended before reaching target due to<br />
difficulties experienced by the drilling rig in the harsh<br />
deepwater environment. After an extensive review of<br />
the challenging surface conditions, Total contracted<br />
the Odfjell Deepsea Stavanger semi-submersible rig to<br />
drill the Brulpadda-1AX re-entry well commencing in<br />
December 2018.<br />
The Brulpadda well was drilled in approximately<br />
1 400 metres of water by the Odfjell Deepsea Stavanger<br />
semi-submersible rig. The well targeted two objectives<br />
in a deep marine fan sandstone system within combined<br />
stratigraphic/structural closure. Following the success<br />
of the main objective, the well was deepened to a<br />
final depth of 3 633 metres and was successful in the<br />
Brulpadda-deep prospect.<br />
The well encountered oil pay and a total of 57 metres<br />
of net gas condensate pay over two Middle to Lower<br />
Cretaceous high-quality reservoirs. Core samples were<br />
taken in the upper reservoir, and a comprehensive<br />
logging and sampling programme was performed over<br />
both reservoirs. The success at both the Brulpadda<br />
primary and secondary targets significantly de-risks<br />
other similar prospects on Block 11B/12B.<br />
In March and April 2019, the operator acquired 570<br />
square kilometres of 3D seismic with the Polarcus<br />
Asima vessel. The first phase of 3D seismic covered<br />
the Brulpadda discovery and the Luiperd prospect. The<br />
fully processed 3D seismic dataset validates the direct<br />
hydrocarbon indicators and thick reservoir development<br />
___ __<br />
The success at<br />
both the Brulpadda<br />
primary and<br />
secondary targets<br />
significantly de-risks<br />
other similar<br />
prospects on<br />
Block 11B/12B.
OIL AND GAS<br />
at the main objective and illuminates the deep target,<br />
confirming the large resource potential of the Paddavissie<br />
Fairway. The 3D seismic also increases PASA’s confidence in<br />
the sedimentological and structural interpretation and has<br />
been integral in selecting the location for the next exploration<br />
well on Block 11B/12B, Luiperd-1.<br />
The joint venture partnership continues to analyse and<br />
integrate the fully processed 3D seismic with the analysis of<br />
the core samples and the modular formation dynamics tester<br />
(“MDT”) samples. The core indicates a high net to gross in<br />
the main objective with good intergranular porosity and<br />
permeability. The pressure, volume and temperature (“PVT”)<br />
analysis performed on the MDT samples confirmed the high<br />
liquid yield in the main gas condensate zone of the main and<br />
deep reservoirs.<br />
In July 2019, the operator of Block 11B/12B, Total, executed<br />
a multi-well drilling contract with Odfjell Drilling for the<br />
Deepsea Stavanger semi-submersible rig, the same rig that<br />
drilled the Brulpadda discovery in February 2019. The rig<br />
recently mobilised to South Africa from Norway.<br />
In May 2020, the Block 11B/12B<br />
joint venture received the fasttrack<br />
2D seismic dataset from<br />
Shearwater GeoServices Holding<br />
AS for the 7 033 linear kilometre<br />
2D seismic programme completed<br />
earlier in the year on Block<br />
11B/12B, where the Company<br />
holds an effective 4.9% interest.<br />
Initial interpretative work has<br />
confirmed the Kloofpadda Play<br />
Trend, which consists of several large and encouraging leads.<br />
The Block 11B/12B joint venture expects the fully processed<br />
2D seismic dataset in late August 2020 and will then begin full<br />
prospect analysis for the eastern part of the block.<br />
In June 2020, the Block 11B/12B joint venture received the<br />
fast-track 3D seismic dataset from Petroleum Geo-Services<br />
ASA (“PGS”) for the 2 305 square kilometres 3D seismic<br />
programme completed earlier in the year on Block 11B/12B.<br />
Initial interpretive work has identified some additional leads,<br />
including a potential northern extension to the Luiperd<br />
prospect.<br />
Africa Energy holds a 4.9% effective interest in the<br />
Exploration Right for Block 11B/12B. The Company owns 49% of<br />
the shares in Main Street 1549 Proprietary Limited, which has<br />
a 10% participating interest in the block. Total as the operator<br />
holds a 45% participating interest in Block 11B/12B, while<br />
Qatar Petroleum and CNRI hold 25% and 20%, respectively.<br />
“Further development of the discovery is highly dependent<br />
on the success of this further drilling,” attests Dr Masangane.<br />
“Possible development could see condensate being piped to the<br />
PetroSA facility in Mossel Bay,” she adds, but these decisions<br />
are ultimately up to the operator, Total, and its partners.<br />
DR PHINDILE C MASANGANE<br />
PHD CHEMISTRY, MBA, BSC. (MATHEMATICS & CHEMISTRY)<br />
Dr Masangane was appointed as the CEO of the South African<br />
upstream oil and gas regulatory authority, Petroleum Agency South<br />
Africa, in May 2020.<br />
Before then, Dr Masangane was an executive at the South<br />
African state-owned energy company, CEF (SOC) Ltd, which is the<br />
holding company of PASA. Dr Masangane was responsible for clean,<br />
renewable and alternative energy projects. In partnership with private<br />
companies, she led the development of energy projects including the<br />
deal structuring, project economic modelling and financing on behalf<br />
of the CEF Group of Companies.<br />
Her responsibilities also include supporting the national government<br />
in developing energy policy and regulations for diversifying the<br />
country’s energy mix. In 2019, Dr Masangane was Head of Strategy<br />
for the CEF Group of Companies where she led the development<br />
of the Group’s long-term strategic plan, Vision 2040+ as well as<br />
the Group’s gas strategy. From 2010 to 2013, Dr Masangane was<br />
a partner and director at KPMG, responsible for the Energy Advisory<br />
Division. In this capacity, she successfully led the capital raising of<br />
$2-billion for the Zimbabwe power utility, ZESA/ZPC’s hydro and coal<br />
power plants expansion programmes.<br />
PASA has successfully attracted major explorers to South Africa<br />
and facilitated the acquisition of many new large<br />
seismic surveys and some exploratory drilling,<br />
through a period affected by legislative<br />
issues and a major oil price crash.<br />
“PASA’s challenge is to ensure that both<br />
international and local energy companies<br />
see this value proposition with South Africa<br />
and choose our country. In this low oil and<br />
gas price environment, companies are inclined<br />
to cut back on capital investments and we<br />
need to partner with them to sustain the<br />
momentum,” says Dr Masangane.<br />
___ __ _<br />
Dr Phindile C. Masangane
OIL AND GAS<br />
Refining 2021: who<br />
will be in the game?<br />
To keep up with change, refineries will have to restructure, strategically reposition their assets, or leave<br />
the market. With one in five oil refineries expected to cease operations over the next five years, choosing<br />
the right operating model and level of integration will be crucial for survival and sustained profitability.<br />
These stark prospects are among the findings of<br />
a recent Kearney study of the global refining<br />
market. In North America and Western Europe,<br />
the current trend of refinery closings is expected<br />
to continue, with one in five refining assets being<br />
squeezed out of the market over the next five years.<br />
Meanwhile, the boom in demand in Asia and the Middle<br />
East will lead to substantial changes in capacity and<br />
partnership structures.<br />
The conventional wisdom of vertical integration as<br />
the ideal and sustainable model for refiners is being<br />
challenged. Choosing the right operating model and<br />
the required level of integration across the value chain<br />
– for each asset and each region – will be crucial for<br />
improving margins and sustaining profitability in a<br />
volatile market. For assets that are not financially viable,<br />
regardless of their model, a decision about whether to<br />
exit will need to be made early on to prevent financial<br />
losses later in the decade.<br />
VALUE DRIVERS IN REFINING<br />
In the face of such rapid regional and global change,<br />
refiners need to re-examine what creates value in their<br />
industry to ensure they capture the most value from<br />
their asset portfolios. The value an asset generates<br />
depends on factors related to input, output and the<br />
asset itself.<br />
Value related to input factors includes crude<br />
fungibility, trading and hedging, energy imports and<br />
blending components. Output value relates to the choice<br />
of product and market sectors, for example, lubricants,<br />
petrochemicals, specialities (aviation and marine), or<br />
fuel and energy (domestic or industrial). Asset value<br />
relates to scale and technology, the fiscal and regulatory<br />
(regime) environment, supply chain management and<br />
slate flexibility.<br />
The value derived from each barrel of oil consumed<br />
varies from day to day and over the long term, as does<br />
the risk to that value. Risk factors relate to supply<br />
and demand fluctuations and arbitrage, price and<br />
time exposure, volatility and availability, political<br />
and regulatory instability and uncertainty, and<br />
interdependencies along the value chain.<br />
In such a complex and changing environment,<br />
refiners must be confident that they are participating in<br />
the market most productively – ensuring that a refinery<br />
asset has both the right flexibility and the ability to<br />
capture multiple marketing options.<br />
OPERATING MODELS FOR REFINERS — A DIVERSE PALETTE<br />
Four principal operating models are currently in play<br />
in the industry, with no single model dominating. The<br />
picture is evolving constantly, as companies adopt<br />
models they feel are best suited to the times. The<br />
operating models can be defined briefly as follows:<br />
• Upstream integration. A single source of crude oil<br />
accounts for more than 50% of the upstream integrated<br />
refiner’s supply; the crude source can be either equity<br />
crude or a long-term contractual arrangement.<br />
___ __<br />
Adapting to local or<br />
regional conditions,<br />
while making the most<br />
of global synergies, is<br />
the name of the game.<br />
12 | www.opportunityonline.co.za
Refinery value drivers<br />
OIL AND GAS<br />
Input<br />
Crude fungibility<br />
• Local or regional<br />
balances<br />
• Pipeline or imports<br />
by ship<br />
• Multiple asset<br />
optimisation<br />
Trading and hedging<br />
• Feedstock<br />
• Products<br />
• Currency<br />
Energy imports<br />
• Electricity<br />
• Steam<br />
Blending components<br />
• Gasoline<br />
• Biofuel<br />
• Gas to liquids<br />
Source: A.T. Kearney analysis<br />
Asset-related<br />
Output<br />
Scale and technology<br />
• World-scale or<br />
sub-scale<br />
• Distillation and<br />
conversion<br />
• Technology<br />
Fuel and energy<br />
• Merchant only<br />
versus retail<br />
• Export versus<br />
local sales<br />
Fiscal and<br />
regulatory regime<br />
• Tax<br />
• Regulation<br />
• Environment<br />
Specialties<br />
• Specialist markets<br />
(marine, aviation,<br />
asphalt) with<br />
dedicate assets<br />
• Brand equity<br />
Supply chain<br />
management<br />
• Location<br />
• Logistics infrastructure<br />
• Working capital<br />
optimisation<br />
Petrochemicals<br />
• Which value chain<br />
•Joint venture or<br />
sole ownership<br />
• Export versus<br />
local sales<br />
State flexibility<br />
• Dedication of<br />
technology<br />
• Ability to<br />
change baskets<br />
• Operational flexibility<br />
Lubricants<br />
• Base oil plant<br />
• Blending plant<br />
and storage<br />
www.kearney.com<br />
• Merchant refiner. Lacking both upstream and<br />
downstream integration, the merchant refiner has<br />
the flexibility to react quickly to both crude and<br />
downstream supply opportunities and to adjust<br />
operations or integrate into a larger logistics hub.<br />
• Downstream integration. Dedicated marketing<br />
channels take more than 50% of the downstream<br />
integrated refiner’s production. These trades are<br />
secured either through equity or long-term contracts.<br />
• Vertical integration. Fulfilling the requirements for<br />
upstream and downstream integrated refiners at<br />
the same time, the vertically integrated refiner can<br />
capture value by making the most of advantages across<br />
the value chain.<br />
MAXIMISING VALUE: DIFFERENT STRATEGIES<br />
FOR DIFFERENT REGIONS<br />
In such a diverse landscape, there is no one-size-fitsall<br />
approach to business. Adapting to local or regional<br />
conditions, while making the most of global synergies,<br />
is the name of the game. The only given in this shifting<br />
landscape is that refining excellence is imperative in all<br />
input, output and asset-related dimensions.<br />
Eastern European and Russian refiners are investing<br />
in technologies and scale to overcome the limitations of<br />
their dated structures and to pursue asset excellence.<br />
However, infrastructure and output issues around<br />
the still-underinvested and not yet upgraded refining<br />
technology landscape are hindering integration with<br />
the local market and are favouring fuels export instead.<br />
Asia Pacific has the highest activity in terms of<br />
numbers of refineries opened and closed, even as small,<br />
polluting and less efficient refineries are being closed<br />
and world-scale state-of-the-art facilities are coming<br />
online. In this highly attractive market, international<br />
oil majors are becoming much more involved in joint<br />
ventures to build petrochemical plants, attracted by<br />
relatively high economic growth in many countries.<br />
THE ONLY CERTAINTY: A REQUIREMENT FOR EXCELLENCE<br />
We expect further significant upscaling in global<br />
refining, which will result in divestment and closure of<br />
lagging assets in North America and Western Europe.<br />
The changing global supply-and-demand situation will<br />
push Middle East refiners to intensify their partnering<br />
with Asia Pacific players.<br />
Meanwhile, more refineries in Asia Pacific – especially<br />
China and India – will integrate with petrochemical<br />
plants, as a combined build-or-buy reverse integration.<br />
Changes in crude availability and discounts will affect<br />
refining capacity and profitability of some players in<br />
the region.<br />
Companies can respond to these changes by choosing<br />
among different operating models and methods of<br />
value-chain integration. Each model has its strengths<br />
and weaknesses; for instance, the pure merchantrefining<br />
model ranges from vulnerable to high volatility<br />
in absolute oil price.<br />
For new investors, integration with a competitively<br />
positioned upstream player or a secure downstream<br />
business will be important. Deep integration of refining<br />
with petrochemicals can add value but comes with its<br />
complexity and economic factors..<br />
The only given in this shifting landscape is that<br />
refining excellence is imperative in all input, output,<br />
and asset-related dimensions. The market gives no-one<br />
a free ride, and it has become more important than ever<br />
to manage risk exposure.<br />
___ __<br />
The value derived<br />
from each barrel of<br />
oil consumed varies<br />
from day to day<br />
and over the long<br />
term, as does the<br />
risk to that value.<br />
www.opportunityonline.co.za | 13
LAUREATE LEADERS<br />
Heal our people,<br />
lead our land<br />
Busisiwe Mavuso and Dr Mamphela Ramphele<br />
declare that national interest must be placed<br />
first. It is time to transform South Africa.<br />
Covid-19 has exposed just how fractured South<br />
Africa’s democracy is and how unequal we are<br />
as a society. We need rational, pragmatic choices<br />
from government, labour and business, says<br />
Busisiwe Mavuso, CEO, Business Leadership<br />
South Africa. “If this pandemic doesn’t make us, as<br />
leaders, carefully think about how we sustainably<br />
start to deal with our structural economic flaws, then<br />
I don’t know what will.” Mavuso avers the 2020 economic<br />
outlook was bleak with a projected 0.3% economic<br />
growth. Unemployment data recently released a recorded<br />
2.2-million job losses in the second quarter of the<br />
year, and that the economy shrank simultaneously by<br />
an annualised 51%.<br />
South Africa is hampered in its response to the<br />
pandemic because many citizens lack access to<br />
running water, have no money for sanitiser, and live in<br />
overcrowded housing.<br />
Countries that will bounce<br />
back quickly are those<br />
with a “diamond” economic<br />
structure, with<br />
an 80% middle class.<br />
“It is the middle class<br />
that carries the economies,<br />
not the rich,”<br />
articulates Mavuso.<br />
“The biggest ticking<br />
time bomb in this country is inequality, which<br />
undermines social stability, and means the quest of<br />
attaining a sustainable and conducive environment<br />
within which business should operate will continue to<br />
be elusive. It is for this reason that, as business, we need<br />
to be more intentional and deliberate about the role we<br />
play in society.<br />
“The question we need to be asking is what now,<br />
where to from here, and what is required from each<br />
of the social partners in moving the country forward.<br />
All of our efforts need to be geared towards economic<br />
recovery, and what the country needs right now is<br />
rational, pragmatic choices to guide our actions.”<br />
Mavuso acknowledged that government controls the<br />
policy environment within which all operate. “We need<br />
the government to come up with a president-led and<br />
cabinet-backed plan that we can all get behind with<br />
a common issue.” Nedlac partners had presented the<br />
president with a proposed economic recovery strategy,<br />
and “what is required now is clear and decisive<br />
leadership from the top”.<br />
Businesses can choose to work with fewer people,<br />
or with more machines, to increase productivity. “A<br />
great deal of cost is created by regulation. Employers<br />
spend a great deal on labour disputes that end up in<br />
the CCMA or court, a lot of production is lost to strikes,<br />
and many employers sit with unproductive or even<br />
destructive staff members because it is too difficult<br />
___ __<br />
Countries that will<br />
bounce back quickly<br />
are those with a<br />
“diamond” economic<br />
structure, with an<br />
80% middle class.<br />
“It is the middle<br />
class that carries<br />
the economies,<br />
not the rich,”<br />
articulates Mavuso.<br />
Let us agree that as a country we seem to<br />
lack the political courage to address some<br />
of the stringent labour regulations, and to<br />
have an honest and frank discussion with<br />
our labour constituents in this regard
LAUREATE LEADERS<br />
to fire them.” An economy able to quickly replace<br />
unproductive workers at minimal cost will be one that<br />
employs many more workers, because on average they<br />
will be more productive, and the all-in cost of hiring<br />
them would be lower.<br />
“Let us agree that as a country we seem to lack<br />
the political courage to address some of the stringent<br />
labour regulations, and to have a honest and frank<br />
discussion with our labour constituents in this<br />
regard. It is about time that labour came to the party<br />
by working with business to preserve and create more<br />
jobs. There needs to be serious consideration around<br />
short time and amendment of some of the rigid labour<br />
regulations.” [Short time is working fewer hours as an<br />
alternative to retrenchment.]<br />
“South Africa’s social injustice is business’ crisis<br />
as much as it is the government’s crisis. It is our<br />
crisis because, as a grouping that has levers to<br />
economic power, we have a special responsibility<br />
to work firmly towards this agenda. Let us agree,<br />
as business, that some things are bigger than selfinterest<br />
and the profit motive. And those are issues of<br />
national interest that need to be elevated above all,”<br />
Mavuso concludes.<br />
“It cannot just be left to government to fix our<br />
structural inequalities as a country because,<br />
unfortunately for us, government’s failure is South<br />
Africa’s failure. And South Africa’s failure is business’<br />
failure. As the adage goes, show me a failed state, and<br />
I’ll show you a failed nation.”<br />
___ __<br />
“Let us agree, as<br />
business, that some<br />
things are bigger<br />
than self-interest and<br />
the profit motive.<br />
And those are issues<br />
of national interest<br />
that need to be<br />
elevated above all.”<br />
The Covid-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming our society into a<br />
more equitable, resilient and prosperous democracy that promotes the wellbeing of all people and our planet. This call to<br />
action was made by academic, businesswoman and political thinker, Dr Mamphela Ramphele, co-founder of ReimagineSA.<br />
The greatest leaders in extraordinary times in<br />
world history are not necessarily those who had<br />
demonstrated their capacity to lead in normal<br />
times, asserts Dr Rhamphele. “On the contrary,<br />
leaders who rise to the demands of extraordinary<br />
crises tend to be those willing to take the risk to be<br />
creative, inventive and courageous. Such leaders<br />
succeed because they dare to break from the known<br />
to the unknown, from the familiar to the unfamiliar,<br />
from traditional to non-traditional ways to open up new<br />
pathways to more promising futures.”<br />
LEADERSHIP IN CHALLENGING TIMES<br />
Racism, sexism and inequity “that have reared their<br />
ugly heads with a vengeance over the past few years”<br />
are warning signs that unless we address these legacy<br />
issues, future generations will be hampered by the<br />
burden of these ghosts.<br />
Corporate South Africa can lead the charge in this<br />
healing work as businesses return to the workplace,<br />
says Dr Ramphele. “There is an imperative to initiate<br />
processes of deep conversation in safe spaces between<br />
leaders, managers and workers about how to work<br />
together to create a new normal in the workspace.<br />
Healing conversations have to go beyond the wounds<br />
of the past to embrace the fragilities in work, family,<br />
community and public life that Covid-19 has laid bare.<br />
“Critical, responsible and accountable citizenship<br />
is a key success factor of stable societies across the<br />
world. We now know that where there is trust between<br />
people in the workplace, productivity, creativity and<br />
innovation thrive.”<br />
LEADING THE EMERGENCE FROM POST-COVID EMERGENCY<br />
Humanity is consuming 1.7 times the resources we<br />
should, and the world is approaching a tipping point<br />
on climate change. Protecting the future of human<br />
civilisation and the wellbeing of our planet requires<br />
dramatic interventions. These include human and<br />
economic transformation, with a radical overhaul of<br />
corporate governance, finance, policymaking and<br />
energy systems towards greater transparency and<br />
accountability. We need to address three obstacles:<br />
• Shareholder- instead of stakeholder-driven business<br />
• Finance used in inadequate and inappropriate ways<br />
• Governance based on outdated economic thinking<br />
and faulty assumptions<br />
Enterprises need to listen to trade unions and<br />
workers’ collectives, consumer advocates and others in<br />
the rest of society. Corporate governance must reflect<br />
stakeholders’ needs instead of shareholders’ whims.<br />
Government assistance to business should be less about<br />
subsidies, guarantees and bailouts, and more about<br />
building partnerships. Strict requirements should be<br />
attached to any corporate or state-owned enterprise<br />
bailouts so that taxpayers’ money is used productively<br />
and generates long-term public value.<br />
“We need to reimagine and rebuild governance<br />
systems from the local, provincial and national levels<br />
and to strengthen critical citizenship to ensure that<br />
we, the people, relentlessly demand accountability<br />
in a responsible manner within the ambit of the law.<br />
Destruction of public property in the name of public<br />
anger and rage must end. Citizen accountability must<br />
rest on taking ownership of these public assets and<br />
www.opportunityonline.co.za | 15
LAUREATE LEADERS<br />
_____ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _<br />
Leaders who rise to the demands of extraordinary<br />
crisis tend to be those willing to take the risk<br />
to be creative, inventive and courageous<br />
___ __ ___ __ _ _ _ _ _ _ _ _ _ _ _ _<br />
needs to be complemented by severe punishment for<br />
those who continue to be destructive.”<br />
Dr Ramphele advocates robust plans for a transition<br />
to renewable energy, with timelines towards zero<br />
emissions. “We have much to gain by kick-starting<br />
our economy through accelerating investments in<br />
enterprises that promote regenerative economic<br />
production systems.”<br />
South African SMMEs are largely in survival mode.<br />
We require nimble and integrative approaches that<br />
collapse the bureaucracy of existing organisations into<br />
a high-impact platform to identify and significantly<br />
invest financial and business skills support, she says.<br />
We need to move away from GDP as a measure of<br />
progress. “GDP is an inadequate measure given that it<br />
largely accounts for, and values, only consumption. GDP<br />
does not consider the ecological costs in the production<br />
of goods and services that have a major impact on the<br />
wellbeing of people and our planet.”<br />
Public services should be reimagined to ensure<br />
high-quality, sustainable solutions. “The pernicious<br />
tender system that has turned public servants into<br />
administrators of interminable tender processes<br />
needs to be ended.” Social and physical infrastructure<br />
development must be driven by skilled personnel, with<br />
capable leaders at local, provincial and national levels<br />
to ensure that they can negotiate value for money for all<br />
public-private partnerships.<br />
“We urgently need to transform and revitalise<br />
infrastructure to kick-start our moribund economy. Wellplanned<br />
and well-executed infrastructure development<br />
programmes are the only guarantor of training<br />
opportunities for the millions of young unemployed<br />
people to become artisans and maintenance workers.”<br />
A FAILING EDUCATION WHEN EXCELLENCE IS ATTAINABLE<br />
Our education system is the best-resourced in Africa,<br />
yet by all measures is among the worst performers<br />
globally. In the 2018-2019 fiscal year, 16.5% of<br />
government expenditure went to basic education;<br />
overall, 20% of our national resources are spent on<br />
basic and higher education annually, yet we have “a<br />
hopelessly underperforming system that has failed<br />
generations of young people since 1994”.<br />
“It would be much cheaper to let go of all default<br />
teachers, 50 years and older, with attractive packages.<br />
We would then be able to hire young people from our<br />
higher education and training system, who are assessed<br />
to have the aptitude and commitment to become 21stcentury<br />
teachers. In-service training of scores of young<br />
people would enable us to reimagine and build a 21stcentury<br />
education system.”<br />
Dr Ramphele concludes: “Covid-19 has created an<br />
urgent imperative to transform our inequitable society<br />
into one governed by the values of ubuntu – that<br />
would help us understand that there is no ‘I’ without<br />
‘We’. An ubuntu value-based society, with citizens<br />
that are liberated from the impositions of inferiority<br />
and superiority complexes, is urgently needed. Such<br />
a society would be driven by healthy relationships<br />
with self, family, community and wider society.<br />
Leadership that is self-liberated would emerge to<br />
lead the rebuilding of our broken public institutions<br />
in line with ubuntu values and the prescriptions of<br />
our Constitution.”<br />
___ ___<br />
“We have much to gain<br />
by kick-starting our<br />
economy through<br />
accelerating investments<br />
in enterprises that promote<br />
regenerative economic<br />
production systems.”
GLOBAL TRADE<br />
More than beer<br />
and chocolates<br />
Flanders, the northern Dutch-speaking region of Belgium, has a lot to offer<br />
South African companies that want to enter the European market.<br />
Since the Middle Ages, Flanders was a textile<br />
region, making tapestries and clothing. The<br />
textile sector diversified into flooring products<br />
from carpets to wooden flooring, technical textiles<br />
and artificial grass. Flanders is now expanding<br />
in new areas of expertise such as smart textiles and new<br />
materials, where for example, microchips are integrated<br />
in the textile fabrics.<br />
In the golden Sixties, Flanders was successful in<br />
attracting multinational chemical companies to the port of<br />
Antwerp. The port is an ideal gateway to the international<br />
markets and the European hinterland. The different plants<br />
are interconnected with pipelines and connected with<br />
other ports (such as Zeebrugge and Amsterdam) making it<br />
a very efficient production location. Sasol of South Africa is<br />
present in Flanders with a distribution facility in Antwerp.<br />
Another wave of investments in the Sixties came from<br />
the automotive sector. Today Volvo (XC40 model) and<br />
Audi (E-Tron model) in the Brussels region have flexible<br />
production plants. Flanders also attracts automotive<br />
suppliers as well as truck and coach/bus manufacturers.<br />
Volvo trucks has the largest manufacturing plant in Ghent.<br />
New investments also stem from the pharmaceutical<br />
sector. The pharmaceutical development started in<br />
1<strong>95</strong>3 with Dr Paul Janssen, who founded Janssen<br />
Pharmaceuticals in Beerse. His challenge was to merge<br />
pharmacology and chemistry knowledge: 80 medicines<br />
were discovered in different fields, including Opiod<br />
(Fentanyl – pain medication), Mikonazole (Daktarin<br />
– antifungal medication) and Loperamide (Imodium –<br />
diarrhea medication) to name a few.<br />
Green biotech was introduced to Flanders by the<br />
company PGS (Plant Genetic Systems) in 1992. The<br />
founders, Prof Mantagu and Dr Jeff Schell, were the first<br />
to develop plants resistant to insects, pests and herbicides<br />
by genetically engineering the plants. Many of the corn,<br />
cotton, yellow maize and soybeans currently available in<br />
South Africa are GM (genetically modified) crops.<br />
Medical biotechnology (red biotech) has developed<br />
rapidly in Flanders, mostly at the five universities and<br />
four academic hospitals for clinical trials. More than 140<br />
companies have been formed over the years.<br />
In the ICT space, Flanders is one of the worldwide pioneers<br />
in nanotechnology (chip technology) thanks to the<br />
InterUniversity Micro Electronics Center (IMEC), linked to<br />
the oldest university of Europe: KU Leuven. IMEC expanded<br />
its expertise in nanotechnology and chip technology<br />
to application domains such as healthcare, smart cities,<br />
mobility and manufacturing, logistics and energy.<br />
Flanders is now on the forefront of high-tech research and<br />
the digital economy. More than 120 companies have spun<br />
off since IMEC was established in 1986.<br />
The food-processing sector is well-established: the<br />
beverage sector boasts 224 breweries, 1 000 types<br />
of beers and the largest brewing company, ABInbev.<br />
Chocolate production is the highest in Europe, but the<br />
region also excels in the production of frozen vegetables,<br />
fries and bakery products.<br />
Flanders is strategically located in<br />
the middle of Europe, making it an ideal<br />
location for an European Distribution Centre<br />
(EDC). More than 250 companies (including<br />
Nike, Bose, Black & Decker, Volvo, Mazda,<br />
Scania, Ikea, Ingram Micro, Greenspan and<br />
Chiquita) selected Flanders as an EDC.<br />
South African companies should consider<br />
Flanders as an R&D location or distribution<br />
hub for a variety of sectors. Flanders excels<br />
in developing the “Triple Helix’’ (company: education:<br />
government). Building your presence in Europe reduces<br />
your dependence on the rand, your company becomes<br />
part of the various ecosystems and you can tap into<br />
qualified personnel and a broad range of incentives.<br />
www.flandersinvestmentandtrade.com<br />
___ __<br />
Luc Fabry<br />
Trade and Investment<br />
Commissioner,<br />
Flanders Investment<br />
& Trade<br />
___ __<br />
IMEC has 2 clean<br />
rooms and is at<br />
the forefront of<br />
chip design and the<br />
digital economy.<br />
www.opportunityonline.co.za | 17
AGRICULTURE<br />
Two truths about<br />
Africa’s agriculture<br />
There are two truths today about African agriculture: significant progress<br />
has been made, and there is potential for much more.<br />
The progress has been quite impressive.<br />
Agricultural production is up 160% over the past<br />
30 years, far above the global average of 100%.<br />
Eighteen Sub-Saharan African countries have<br />
reached the Millennium Development Goals’<br />
first target of halving the proportion of people who<br />
are hungry. Country-level programmes, cross-border<br />
initiatives and pan-African groups have all played<br />
important roles in these advances.<br />
Yet there is vast room for improvement. Africa<br />
remains a net importer of food, although it has 60% of<br />
the world’s uncultivated arable land. As its population<br />
has doubled overall and tripled in urban areas in the<br />
past 30 years, agricultural production and food security<br />
have struggled to keep pace. Africa is the only continent<br />
where the absolute number of undernourished people<br />
has increased over the past 30 years.<br />
Africa will have a population of two-billion by 2050,<br />
and agriculture will be central to feeding all of those<br />
people. Agricultural transformation must build social<br />
cohesion, create beneficial continental trade, provide<br />
a platform for global exports and, most importantly,<br />
help create millions of jobs while pulling subsistence<br />
farmers out of poverty.<br />
AFRICA’S AGRICULTURAL TRANSFORMATION AT THREE LEVELS<br />
Transforming the agricultural value chain at three<br />
levels – farmer, market and cluster – is central to any<br />
progress in Africa.<br />
FARMERS<br />
Smallholder farmers contribute up to 80% of Sub-<br />
Saharan Africa’s food supply, according to the UN’s<br />
Food and Agriculture Organisation, and Africa has an<br />
estimated 33-million smallholder farms. Increasing<br />
their capabilities would increase Africa’s output and<br />
help solve Africa’s poverty and malnutrition.<br />
Farmer-level transformation should seek to increase<br />
yields and reduce post-harvest losses. It requires<br />
granular-level interventions that form the basis for<br />
sustained economic and societal success. Enablement in<br />
areas like education, infrastructure, water management<br />
and regulation is crucial as well. Public-private<br />
initiatives can ensure capability-building support and<br />
the development of structures in areas like financing.<br />
Crop-specific government initiatives in certain areas,<br />
depending on soil and climatological specifics, could<br />
also benefit.<br />
These initiatives can be facilitated by a pan-African<br />
perspective in three ways:<br />
• Best practice sharing.<br />
Providing a best practice clearinghouse for farmer<br />
associations and governments.<br />
• Support of governments<br />
Aiding governments in skills development and<br />
coordinating cross-country initiatives.<br />
• Public-private partnership initiatives<br />
Creating a first “port of call” for large corporate and<br />
institutional investors to ensure the effectiveness<br />
and coordination of investments.<br />
___ __<br />
At regional and<br />
country levels,<br />
government and<br />
market actors need<br />
to create the markets<br />
that allow the trade of<br />
homegrown products.<br />
18 | www.opportunityonline.co.za
AGRICULTURE<br />
www.kearney.com<br />
MARKETS<br />
Farmers need access to markets to earn their fair share<br />
of the profit pool in the value chain. Good markets,<br />
in turn, provide food security for the population and<br />
facilitate Africa’s agricultural self-sufficiency.<br />
Making markets work is a supply chain infrastructure<br />
and information issue. Governments and<br />
private investors need to ensure that sufficient<br />
roads, warehouses, processing facilities and other<br />
infrastructure are in place to get products to<br />
increasingly urbanising markets. Farmers need access<br />
to information to deliver products to the markets that<br />
offer them the best price. At regional and country<br />
levels, government and market actors need to create the<br />
markets that allow the trade of homegrown products.<br />
Markets are often developed at country level, but a<br />
pan-African strategy would include the best practice<br />
sharing and public-private partnership support we<br />
highlighted for the farmer level. Additionally, for<br />
markets, removing trade barriers and inefficiencies<br />
between countries and freeing up the traffic of<br />
agricultural produce across Africa would significantly<br />
boost the intra-African cross-border trade of produce.<br />
_____ __ ___ __ _ _<br />
Africa is a net importer<br />
of food, although it<br />
has 60% of the world’s<br />
uncultivated arable land<br />
___ __ _____ __ _ _<br />
CLUSTERS<br />
In this final, macro-level of transformation, Africa has<br />
the potential to become a major agricultural player<br />
globally, facilitating the export of its products outside<br />
the continent. Cluster-specific initiatives typically focus<br />
on product availability and production competence.<br />
Dairy exports from New Zealand are one successful<br />
example of macro-level transformation. Years ago,<br />
the New Zealand Dairy Board created a platform for<br />
best practice sharing among its members to improve<br />
productivity and product quality and actively created<br />
export markets for excess products. Some of the Dairy<br />
Board’s activities became part of a new cooperative<br />
called Fonterra – now one of the leading global milk<br />
processors and dairy exporters, with roughly 22-billion<br />
litres of milk produced annually. Fonterra also produces<br />
more than two-million tons of dairy ingredients,<br />
speciality ingredients and consumer products annually<br />
– <strong>95</strong>% of which is exported. This allows New Zealand to<br />
punch above its weight in the dairy market.<br />
Cluster-specific export initiatives like Fonterra should<br />
be a government goal in Africa. From a pan-African<br />
perspective, identifying sectors and coordinating<br />
initiatives across countries are essential steps to a<br />
transformation strategy.<br />
A PAN-AFRICAN FRAMEWORK<br />
Due to existing dynamics, African smallholders do not<br />
yet benefit from best-in-class global farming practices.<br />
They are often trapped in a vicious cycle that prevents<br />
them from improving their productivity and income.<br />
These farmers are, however, the fabric of African rural<br />
societies. Their future success is crucial as Africa’s<br />
population grows and urbanises.<br />
Strategies are only as effective as the change they<br />
bring about. Truly transforming African agriculture<br />
at the farmer, market and cluster levels depends on<br />
financing, government enablement and sustainability.<br />
Financing will fund the improvements in the value<br />
chain on both the micro (farmer) and macro (export)<br />
levels. Government enablement means putting in place<br />
the regulatory frameworks and structures that foster<br />
a strong business environment – for example, giving<br />
farmers title to the land they use and allowing them to<br />
use that land as collateral for loans for investments that<br />
can build. The development should become sustainably<br />
effective through the close interaction of public<br />
and private enterprises (for example, the African<br />
Development Bank, international donors, or private<br />
enterprises buying into the value chain).<br />
SUCCESS FOR AFRICA’S AGRICULTURE<br />
Governments must focus on improving the enabling<br />
environment for local agriculture, particularly when<br />
it comes to land rights, infrastructure, market access<br />
and elevating women’s roles in society. Pan-African<br />
institutions, such as the African Union, can help<br />
develop cluster opportunities across the continent and<br />
promote intra-African trade and best practice sharing.<br />
The private sector can help by investing,<br />
understanding that Africa’s potential for growth and its<br />
untapped arable land offer huge opportunities despite<br />
the risks. Public-private partnerships can unlock value,<br />
as long as both sides share the onus of success.<br />
No longer must Africa go hat-in-hand to feed its vibrant<br />
and resourceful population. It can help its people feed<br />
themselves, their villages, towns and countries. As scale<br />
and quality develop, export markets from the continent<br />
can flourish, leading increasingly not just to poverty<br />
alleviation but wealth creation. As more inhabitants<br />
see the promise of a better future in agriculture, many<br />
more clusters will be developed, truly making Africa the<br />
breadbasket that the world so desperately hungers for.<br />
___ __<br />
Africa has the<br />
potential to become<br />
a major agricultural<br />
player globally,<br />
facilitating the export<br />
of its products<br />
outside the continent.<br />
www.opportunityonline.co.za | 19
LEGAL SERVICES<br />
Lawful value<br />
Noko Maimela Incorporated was established with the sole purpose of offering quality legal and multidisciplinary<br />
advisory services to corporate and public institutions. <strong>Opportunity</strong> speaks to CEO Noko Maimela.<br />
Clients are at the heart of Noko Maimela’s strategy and<br />
vision. How do you provide a superior service to clients?<br />
Throughout the period of our existence, we have<br />
demonstrated passion, knowledge and understanding<br />
in the areas we chose to specialise in. We always<br />
appreciate that the most important feature of human<br />
relations is how you treat your clients. We can adapt<br />
to every client’s needs and give dedication to each and<br />
every client we serve, no matter how big or small.<br />
Our professional and technical staff is committed to<br />
ensuring that we deliver timeously on our promises. We<br />
treat the client’s business as if it is our own. We believe in<br />
bringing peace of mind to our client right from the start<br />
and we put in as much effort and skill as it takes to sort out<br />
our client’s problems. Therefore, our services are designed<br />
to make a success of every client’s needs. We are willing to<br />
go the extra mile, just for you, our Valued Client.<br />
Please tell us about skills development and mentoring<br />
at Noko Maimela Incorporated.<br />
Noko Maimela Inc relies on highly skilled employees<br />
to achieve its objectives. We value and therefore<br />
seek to develop, nurture, maximise and manage the<br />
development of such skills and competences.<br />
We refuse to practice tokenism in our employment<br />
and in this regard, we believe in strengthening our staff<br />
from within and transferring knowledge and expertise<br />
through mentoring and skills development. In this way,<br />
we can retain and reward talent without abandoning<br />
our principles and fundamental values.<br />
Noko Maimela Inc currently recruits and hires most<br />
of its employees from rural areas around Limpopo with a<br />
view of nurturing the skills around those areas. We will<br />
continue to recruit from these previously disadvantaged<br />
areas as we think it is in the best interest of our country.<br />
What measures do you take to ensure that staff<br />
measure up to the company’s expectations of always<br />
providing superior service?<br />
We strive to achieve and maintain a high level of<br />
service quality and work performance excellence and<br />
apply several measures to ensure that our people,<br />
professionals and support staff comply with our<br />
expectations of superior product and service quality.<br />
All work produced by candidates and junior attorneys<br />
below the level of associates is supervised, monitored and<br />
checked by the senior attorneys/director responsible for<br />
overseeing the work. We have a number of procedures<br />
and policies in place, which all professional staff members<br />
must adhere to.<br />
Our quality assurance policy aims to ensure that<br />
quality-related problems are identified at an early stage.<br />
We believe that issues should be resolved proactively<br />
rather than reactively.<br />
For each client, we appoint a senior attorney who<br />
is primarily responsible for the relationship between<br />
the firm and the client. The senior attorney’s role is<br />
to ensure service quality and that the firm meets the<br />
client’s expectation on turnaround times and level of<br />
service delivery, and he or she will be assisted by a<br />
team of candidate attorneys, professional<br />
attorneys and support staff. The senior<br />
attorney will maintain frequent contact<br />
with the client and is expected to hold<br />
regular and formal client meetings to<br />
discuss and identify any service quality<br />
problems so that improvements can<br />
be implemented.<br />
Please tell us about your Corporate Social<br />
Investment outreach programme.<br />
CSI is an investment in the community,<br />
to create an environment that is safe,<br />
healthy, educated, secure and conducive<br />
to a better lifestyle. Noko Maimela Inc is<br />
committed to improving the livelihood of<br />
previously disadvantaged communities<br />
through its CSI outreach programme.<br />
Noko Maimela’s commitment will ensure<br />
the sustainability of many previously<br />
disadvantaged communities. Through<br />
this commitment we also encourage our<br />
employees to identify charities within<br />
their communities in need of help.<br />
We believe in<br />
strengthening<br />
our staff from<br />
within and<br />
transferring<br />
knowledge<br />
and expertise<br />
through<br />
mentoring<br />
and skills<br />
development<br />
___ __<br />
Noko Maimela,<br />
Founder and CEO<br />
20 | www.opportunityonline.co.za
BEST OF BREED<br />
As the established leader in matters relating to legal services,<br />
Noko Maimela Incorporated is well positioned to deliver excellence<br />
in debt collection and legal services.<br />
Our focus is on the standardisation and implementation<br />
of best-of-breed methodologies. Noko<br />
Maimela Incorporated strives to maintain and<br />
provide state-of-the-art legal services with<br />
modern solutions.<br />
With an entrepreneurial spirit and document-centric<br />
expertise from traditional office technology, Noko Maimela<br />
Incorporated has moved rigorously towards a process<br />
mindset, and is today capable of presenting a new value<br />
proposition built on a managed legal services model.<br />
Among the services that Noko Maimela Incorporated<br />
offers are the following:<br />
• Litigation and claims (Magistrate and High Courts,<br />
Labour Court, Land Claims Court, Supreme Court of<br />
Appeals and Constitutional Court)<br />
• Legal costs<br />
• Personal injury law<br />
• Contract management<br />
• Commercial drafting<br />
• Corporate legal compliance<br />
• Municipal courts<br />
• Alternative dispute resolution<br />
• Employment and labour law<br />
• Insolvency law<br />
• Housing and land tenure laws<br />
• Evictions and interdict<br />
• Commercial legal services<br />
• Debt collection<br />
• Tracing and data cleansing<br />
• General advisory law<br />
MISSION STATEMENT<br />
Through understanding our clients and meeting their<br />
needs, Noko Maimela Inc will grow to be the leading legal<br />
service provider and advising institution in and around<br />
South Africa.<br />
VISION STATEMENT<br />
To enrich the lives of our clients by providing value and<br />
protecting their rights and interests.<br />
____ ___ _<br />
VALUES<br />
We, at Noko Maimela Incorporated, subscribe to the<br />
following human values which have been our hallmark<br />
throughout the period of our existence:<br />
• Integrity in all our actions<br />
• Commitment to our clients, our community and to<br />
each other<br />
• Passion for result and excellent customer services<br />
• Growth for our employees, our customers and the<br />
entire South African community<br />
• Respect for the environment, and our clients<br />
• Confidentiality in clients’ affairs<br />
Noko Maimela Incorporated differentiates its services<br />
through innovation by striving to deliver the following<br />
objectives and purpose:<br />
• Increased service productivity and efficiencies<br />
• Reduced unnecessary costs<br />
• Increased strategic control over instructions received<br />
• Leveraged expertise of services<br />
Noko Maimela Incorporated is committed to Broad-Based<br />
Black Economic Empowerment (B-BBEE) in South Africa<br />
and will continue to make improvements to our policy<br />
strategy on an ongoing basis. Noko Maimela Incorporated<br />
has been awarded a Level 1 accreditation in line with the<br />
B-BBEE Codes of Good Practice, further demonstrating<br />
our commitment to continue improvement and making<br />
a visible difference in South Africa.<br />
Noko Maimela Inc seeks to develop a diverse workforce<br />
and achieve equality at all levels of its operations through<br />
a holistic approach. This will incorporate effective<br />
recruitment, promotion and succession planning, and<br />
effective diversity management.<br />
Noko Maimela Incorporated is 100% black-owned<br />
and employs 29 females and 33 youths. Noko Maimela<br />
Incorporated prides itself on being a wholly black<br />
owned law firm that has qualified in various disciplines.<br />
This diversity has enabled us to stand out as a multidisciplinary<br />
institution that makes us a one-stop legal<br />
services centre.<br />
NOKO MAIMELA ATTORNEYS | 163 Marone Street, Burgersfort 1150 | PO Box 2041, Burgersfort 1150<br />
Cell: 082 969 0049 | Fax: (013) 231 7481 | www.nokoattorneys.co.za | info@nokoattorneys.co.za<br />
Our diversity<br />
ensures we<br />
stand out<br />
as a multidisciplinary<br />
institution<br />
and a onestop<br />
legal<br />
services<br />
centre<br />
PROFILE
TECHNOLOGY<br />
Operational excellence<br />
in information security<br />
management<br />
The adage “knowledge is power” is more apt today than ever before. Information is the currency of today’s<br />
corporations, and protecting that information is of paramount importance – a company’s reputation,<br />
strategic relationships and competitive advantage all depend on it. What are organisations doing to ensure<br />
that they are efficiently, yet effectively, securing their data?<br />
Alack of clarity about how to operate efficiently<br />
means that many companies are wasting<br />
critical resources in lower-priority areas,<br />
resulting in insufficient resources to do the<br />
critical work of protecting the crown jewels of<br />
the company – their information and intellectual capital.<br />
The leaders in information security understand that<br />
their most valuable information assets are the potential<br />
value that is at risk; the nature and source of threats;<br />
the cost of introducing measures to monitor, detect,<br />
prevent and react to information security threats; and<br />
how to use their resources – people, technology, time,<br />
money – most efficiently to achieve their information<br />
security objectives.<br />
While information security practices are improving<br />
across the corporate world, few companies have<br />
implemented a model that successfully protects<br />
them while doing so in an efficient manner. Existing<br />
international technical standards and frameworks<br />
are available as guidelines for managing information<br />
security, yet most fail to address how to do so efficiently.<br />
_____ __ ___ __ _ _ _ _ _ _ _ __<br />
While benchmarking the competition<br />
can help find new solutions, merely<br />
copying other firms’ strategies<br />
can be ineffective, since good<br />
information security management<br />
is driven to a large extent by a<br />
company’s business characteristics<br />
___ __ ___ __ _ _ _ _ _ _ _ _ _<br />
THE GOLDEN RULES<br />
Efficient information security requires broad, crossbusiness<br />
collaboration that engages the whole<br />
company. It requires teamwork, decisive leadership,<br />
effective communication and a culture of continuous<br />
improvement. Only then can a company mitigate the<br />
information security risks it faces as part of its daily<br />
business operations.<br />
1. Protect your assets according<br />
to the value at risk<br />
Protecting every piece of data is cumbersome and<br />
inherently inefficient. Rather, companies need to<br />
classify their data based on the level of importance,<br />
create a security architecture, and set security policies<br />
and protection measures for each of these levels. This<br />
___ __<br />
While information<br />
security practices<br />
are improving across<br />
the corporate world,<br />
few companies have<br />
implemented a model<br />
that successfully<br />
protects them<br />
while doing so in an<br />
efficient manner.<br />
22 | www.opportunityonline.co.za
TECHNOLOGY<br />
www.kearney.com<br />
involves not just assessing the data type and content,<br />
but also who has access to the data and the type of<br />
authentication needed to view the data.<br />
Classifying and protecting data requires an<br />
understanding of the type and source of threats faced<br />
by organisations. Generic attacks target almost all<br />
company data and are commonplace, and security<br />
measures are usually readily available for most of these<br />
attacks. Targeted attacks, on the other hand, are geared<br />
toward a particular organisation and often a particular<br />
data type. Attackers in these types of events tend to put<br />
a lot of effort into them; when successful they can have<br />
a greater impact on the organisation.<br />
2. Turn your information security department<br />
into a business-focused service provider<br />
Similar to IT service management, the information<br />
security department can create a service catalogue<br />
that addresses the needs of the individual business<br />
departments and hence will be easy to understand.<br />
The use of those services will mostly be driven by<br />
regulations and security policies; some could even be<br />
mandatory. A non-exhaustive list of examples includes:<br />
• Providing a secure environment to a business<br />
application managing strictly confidential data<br />
• Third-party security audit<br />
• Security consulting to business projects<br />
• Execut i n g annual information security<br />
management systems (ISMS) cycle: reviewing risk,<br />
measures and implementation planning<br />
• Securing access to public cloud-based services<br />
• Penetration testing and business impact analysis<br />
• Awareness campaigns and staff training<br />
At its core, information security is an extension of<br />
the business – and the information security department<br />
should provide security services relevant to the<br />
business. One way it can achieve this, is by acting as<br />
a service integrator, combining internally provided<br />
services with those delivered by various external<br />
service providers. Setting up information security as a<br />
shared services centre means that costs are allocated<br />
based on usage, rather than being rolled into the<br />
corporate overhead, as is common.<br />
When these services show up in each business<br />
department’s budget, the benefit is not only transparency<br />
but also a more efficient use of resources. The objective<br />
of the shared service centre is to recover the cost of<br />
providing services through optimum service pricing.<br />
3. Ensure buy-in from top management<br />
If there are intermediate layers in the reporting<br />
structure, they should improve board understanding of<br />
information security issues and increase transparency<br />
rather than obscure it. There are several ways<br />
senior leadership can underscore the importance of<br />
information security management.<br />
4. Establish an information security<br />
roadmap with a balanced budget<br />
Every corporation needs to understand its current<br />
security posture; align its information security<br />
objectives with its business strategy, goals and value at<br />
risk; and then establish a strong information security<br />
strategy with a clear and shared roadmap.<br />
This strategic roadmap and its supporting budget<br />
should be regularly updated in response to threats and<br />
changes in the business environment. When security<br />
needs are expressed in financial terms, the board and<br />
management will be more inclined to pay attention.<br />
Creating a budget to maintain and improve<br />
information security capabilities is no easy task. Most<br />
information security departments operate under very<br />
tight financial constraints. To complicate matters,<br />
future needs are uncertain: every year there are new<br />
threats and vulnerabilities, new technologies, and often<br />
new regulatory requirements. Companies need to walk<br />
the line between overspending and underspending,<br />
within the context of their risk appetite.<br />
Companies need to shape their budgets based on<br />
business requirements. The chief information security<br />
officers (CISOs) we spoke with confirmed this view. Twothirds<br />
say their organisations make allocation decisions<br />
based on the requirements for planned projects (bottomup<br />
approach), while one-third said allocations are a<br />
percentage of the IT budget (top-down approach). Most<br />
CISOs whose organisations used a top-down approach<br />
felt a bottom-up approach was preferable.<br />
However, neither of these approaches incorporates all<br />
of the costs of information security management. For<br />
example, there are additional costs incurred by various<br />
departments that are related to information security.<br />
Therefore, to measure efficiency, information security<br />
costs in each of the following budgets need to be taken<br />
into account:<br />
• Direct. This budget is usually directly owned by<br />
the information security department and covers a<br />
variety of areas, from operational activities to risk<br />
management, governance and compliance.<br />
• Indirect. This budget is usually owned by either the<br />
IT department or one of the business departments.<br />
It includes the additional costs incurred as a result<br />
of information security policies and requirements<br />
• Emergency. This is usually handled by senior<br />
executives, and funds can be tapped in the event of<br />
a breach or incident. The strategies for dealing with<br />
emergency funds vary widely across companies;<br />
___ __<br />
At its core,<br />
information security<br />
is an extension of the<br />
business – and the<br />
information security<br />
department should<br />
provide security<br />
services relevant<br />
to the business.<br />
www.opportunityonline.co.za | 23
TECHNOLOGY<br />
while some CISOs increase the direct budget for<br />
worst-case scenarios and shift funds based on the<br />
needs of the businesses, others create an entirely<br />
separate and dedicated budget for emergencies.<br />
It is also important to separate the internal<br />
information security budget from those covering<br />
product-related information security. In companies<br />
with large product divisions, these budgets are often<br />
handled by a separate team altogether, ensuring a clear<br />
demarcation of resources and responsibilities. Also,<br />
in that case, each will have direct and indirect budgets.<br />
A best-practice budget is further divided among<br />
preparation, prevention, detection and reaction<br />
measures, with greater emphasis placed on early<br />
detection and mitigation versus prevention. The budget<br />
should be updated annually – with potential mid-year<br />
adjustments driven by unexpected events – rather<br />
than simply projected forward, to take into account the<br />
financial impact of past incidents and previous security<br />
investments, as well as changes in the threat landscape<br />
and new protection measures.<br />
_____ __ ___ __ _ _<br />
Human attitudes and<br />
behaviours, which<br />
are a reflection of the<br />
organisational culture,<br />
are a critical element<br />
of corporate<br />
information security<br />
___ __ ___ __ _ _<br />
5. Use stress and penetration tests periodically<br />
Periodic stress tests, also called wargaming, are<br />
designed to assess the potential business impact of<br />
attacks. These tests can help companies identify the<br />
gaps in their capabilities and can serve as the basis<br />
for a remediation plan, including changes to policies,<br />
technologies, or even team roles and responsibilities.<br />
A specific way to stress-test a company’s security<br />
infrastructure is via penetration testing, which uses<br />
realistic attack scenarios and vulnerabilities, both<br />
technical and non-technical. The results indicate where<br />
investment can create an immediate impact.<br />
6. Go beyond benchmarking your<br />
peers: cooperate with them<br />
The respondents in our survey agree that finding<br />
universally accepted key performance indicators (KPIs),<br />
common in functions such as finance and operations, is<br />
nearly impossible in information security. In any case,<br />
while benchmarking the competition can help find<br />
new solutions, merely copying other firms’ strategies<br />
can be ineffective, since good information security<br />
management is driven to a large extent by a company’s<br />
business characteristics.<br />
7. Automate processes and functions<br />
Leading companies stay ahead of the pack by using<br />
tools that fully or partially automate security-related<br />
functions and processes. AI, machine learning, big<br />
data, behavioural analytics and the like are key trends<br />
in the security solutions market.<br />
8. Enlist your employees in the<br />
fight against breaches<br />
When asked about the most vulnerable aspect of<br />
information security management in an organisation,<br />
one banking CISO said, “The weakest part is always<br />
human.” Human attitudes and behaviours, which are<br />
a reflection of the organisational culture, are a critical<br />
element of corporate information security.<br />
To increase information security effectiveness,<br />
mandatory training and awareness campaigns are<br />
imperative. Vanessa Hanke, director of global security<br />
policy and standards at SAP, said: “You can have as<br />
many standards as you want, you can have as many<br />
technological checks, but awareness among the<br />
workforce remains critical.”<br />
The goal is to create a culture where employees serve<br />
as a source of information security intelligence and<br />
support. Communicating about information security<br />
policies in a way that relates directly to their work or<br />
personal lives can significantly increase the number of<br />
incidents reported by employees, as well as the quality<br />
of feedback provided by the business.<br />
___ __<br />
To increase<br />
information security<br />
effectiveness,<br />
mandatory training<br />
and awareness<br />
campaigns are<br />
imperative.<br />
24 | www.opportunityonline.co.za
ENERGY<br />
BUSINESS<br />
ON THE RISE<br />
Owned and managed by Ntombekaya (Ntombie) Nonxuba, Rise Uniforms is<br />
a manufacturer and supplier of high-quality uniforms, corporate wear<br />
and medical PPE.<br />
Based in Philippi, Cape Town, they manufacture<br />
locally as per client specifications and supply<br />
nationally. In operation since 2007 and formally<br />
registered in 2010, the company has an<br />
established track record of consistently supplying<br />
uniforms to well-known brands such as Pick n Pay and<br />
Boxer superstores.<br />
Beyond simply meeting a product need, Rise Uniforms<br />
is 100% black female-owned and currently employs 52<br />
people from the township. With a strong desire to see<br />
transformation in the Philippi area, Nonxuba deliberately<br />
chose this location for the production facility and offers<br />
a significant number of employment and business<br />
opportunities in an area that has a staggering 38%<br />
unemployment rate. They also offer training opportunities<br />
to groups of women.<br />
EVER-INCREASING CAPACITY<br />
Rise Uniforms has the necessary technical expertise,<br />
capacity and know-how to deliver on immediate<br />
increases in volumes from the market. Having been<br />
selected as a beneficiary of the Sanlam Enterprise and<br />
Supplier Development Programme, which is designed to<br />
assist companies to embark on their next growth phase,<br />
a professional mentor was assigned to the business and<br />
in 2017 the company increased its production plant from<br />
154m 2 to 504m 2 to supply Boxer superstores.<br />
Over the years, the company has improved its<br />
production processes by investing in state-of-the-art<br />
production machinery. In 2019 they acquired embroidery<br />
machines, a screen-printing machine, an eyelet<br />
buttonhole machine and other complementary machinery.<br />
More recently the company also acquired machinery to<br />
enable the production of medical PPE (three-ply surgical<br />
masks). The company has the necessary capability and<br />
capacity to accommodate additional sizeable orders and<br />
can comfortably increase production.<br />
Their product range includes:<br />
• Medical supplies – PPE This includes surgical gowns, isolation<br />
gowns, surgical masks, theatre gowns and two types of coverall.<br />
• Golf shirts Rise Uniform’s various golf shirts and shirts<br />
include crew-neck T-shirts, bird’s eye golfers, plain golfers and<br />
pique knit golfers (both short and long-sleeved), V-neck T-shirts,<br />
and Lacoste golfers.<br />
• Bottoms The corporate wear bottoms range includes straightleg<br />
chino pants for men and women, as well as chef pants.<br />
• Winter wear This includes zip cardigans,<br />
ladies’ cardigans, sleeveless jerseys and a<br />
long-sleeve classic jersey.<br />
• Winter jackets This range covers loose-fit<br />
and slim-fit jackets in varying weights.<br />
• Conti suits Rise Uniforms manufacture<br />
conti suits as well as security shirts.<br />
• Schoolwear This includes a short-sleeve<br />
uniform with buttons at the front.<br />
• Workwear This range covers nurses’<br />
blouses, cleaners’ blouses, short-sleeve chef<br />
jackets for men and women, aprons, lab coats<br />
and security uniforms for men and women.<br />
• Hooded tops In addition to hooded fleece<br />
tops, Rise Uniforms make crew-neck fleece<br />
tops, zip sweaters, track tops and pants and jumpsuits.<br />
• Hooded dresses This includes hooded and sport dresses and<br />
fleece skirts.<br />
• Formal shirts Formal shirts are manufactured<br />
both in short- and long-sleeved styles.<br />
• Traditional shirts These shirts include a<br />
contrast Chinese collar and button stand.<br />
If its current trajectory is anything to go by,<br />
Rise Uniforms is well on its way to achieving its<br />
vision of being a recognised home name brand<br />
nationally and in the rest of Africa; and attaining<br />
its mission to be a brand of choice, being profitable<br />
and offering high-quality products to clients.<br />
PROFILE<br />
www.opportunityonline.
TRANSPORT<br />
How to make PUBLIC TRANSPORT<br />
an attractive OPTION<br />
in your city<br />
Successful public transport is essential for any transport sector emissions reduction strategy.<br />
It is a public good, delivering benefits for transport efficiency, pollution reduction, the local<br />
economy and social inclusiveness. To make public transport an attractive and everyday choice for<br />
residents, cities must design the service well, and overcome physical and cultural barriers.<br />
High-quality public transport services are<br />
reliable, frequent, fast, comfortable, accessible,<br />
convenient, affordable, safe and serve routes<br />
for which there is demand. This article introduces<br />
the essential infrastructure, service<br />
considerations, network planning and public messaging<br />
needed to realise public transport’s full potential.<br />
UNDERSTAND EXISTING SERVICE QUALITY<br />
TO INFORM UPGRADE DECISIONS<br />
The core considerations for analysis are:<br />
• In-demand travel routes (including journeys<br />
currently taken by car)<br />
• Existing service frequency<br />
• Existing service capacity<br />
• Journey speeds<br />
This analysis should inform decisions such as where<br />
new bus routes should go, or how many buses should<br />
operate on them at different times of the day. Analysis<br />
should be ongoing to enable the public transit network<br />
to develop alongside other changes in the city – too<br />
often routes and services remain static.<br />
Cities can benefit from modern technology and<br />
software, such as GPS and automatic fare collection<br />
systems, which make it easier and cheaper for transit<br />
planners to harness rich data. Cities should complement<br />
quantitative data with nuanced qualitative data about<br />
users’ public transport experience.<br />
RAISE REVENUES, SEEK PUBLIC AND PRIVATE INVESTMENT<br />
AND BE PREPARED TO SUBSIDISE OPERATIONAL COSTS<br />
In large cities, mass transit options such as metro, light<br />
rail transit (LRT), trams and bus rapid transit (BRT) are<br />
the most efficient and sustainable ways to move large<br />
numbers of people across the city.<br />
Building dedicated bus lanes for BRT and<br />
improvements to bus service frequency can usually be<br />
implemented relatively quickly and cheaply, compared<br />
to other forms of mass transit. However, large physical<br />
infrastructure projects – particularly rail and metro<br />
– are expensive, politically complex and usually take<br />
many years to be planned, financed and implemented.<br />
Therefore, mass transit needs to be integrated into longterm<br />
transport and urban development strategies.<br />
By clearly laying out a programme of intended future<br />
transit investments, cities can build political coalitions<br />
behind projects, coordinate the multiple parties involved<br />
in planning and delivering them, and make it easier to<br />
secure financing from both government or private sources.<br />
THE MAIN FINANCING OPTIONS ARE: [1]<br />
• Public finance. Cities will usually require a combination<br />
of national, state and local funding sources<br />
to build public transit infrastructure. This includes<br />
municipal bonds or loans, for example. Loans and<br />
grants from national banks help to mobilise investment<br />
capital and improve the bankability of largescale<br />
projects.<br />
___ __<br />
The Gautrain is a<br />
world-class rail<br />
transport facility<br />
serving commuters<br />
in Gauteng.<br />
26 | www.opportunityonline.co.za
TRANSPORT<br />
C40 Knowledge Hub<br />
• Public subsidy. This is nearly always required to<br />
cover operational costs. The notion that a successful<br />
public transport system fully pays for itself through<br />
passenger fare revenues is a common myth. The<br />
fare and level of subsidy is a political decision;<br />
to set the fare, transit agencies need to calculate<br />
the actual cost of transporting a single passenger,<br />
and then incorporate social equity goals and<br />
other considerations. The required subsidy is the<br />
difference between the two. The fare set and the<br />
level of subsidy agreed or requested should enable<br />
the city to improve transport service quality rather<br />
than simply maintain current levels of service. [2]<br />
• Raised revenue. For example, from fares, road<br />
pricing, transport taxes, parking fees, land-value<br />
capture and other transport-related policy.<br />
• Private investment. This includes public-private<br />
partnerships and bonds.<br />
• Multilateral development banks. Developing<br />
country cities may be able to obtain financing<br />
support from multilateral development banks.<br />
Each of these instruments has many advantages<br />
and disadvantages, and their feasibility varies<br />
depending on the project type and local political and<br />
financial context.<br />
TAKE A WHOLE-NETWORK APPROACH TO<br />
PUBLIC TRANSPORT PLANNING<br />
Promoting a whole-network, intermodal approach to<br />
physical transit planning, fares and operations includes:<br />
• Physical planning. Bus and metro routes, as well<br />
as walking and cycling infrastructure, should be<br />
planned to intersect each other so that passengers<br />
can easily move from one mode to another to<br />
complete their journeys.<br />
• Integrated fares. Payment systems should be<br />
integrated so that passengers only pay once for<br />
trips that include multiple public transit modes.<br />
Smart ticketing systems automatically adjust<br />
the fare that is charged to take into account each<br />
passenger’s specific journey and travel frequency.<br />
• Integrated operations. Ideally, a single agency<br />
should be responsible for managing all public<br />
transport systems in the city. This allows for<br />
seamless intermodal integration and timetabling,<br />
smart ticketing and single apps for users to find<br />
information. London is a good example of this:<br />
Transport for London is responsible, either directly<br />
or through licences and franchises, for managing<br />
London’s metro, bus and tram (DLR and Tramlink)<br />
systems, city-wide cycling infrastructure, taxis<br />
and water buses, in addition to London’s Major<br />
Road Network (most smaller roads are managed<br />
by Borough councils).<br />
IMPROVE THE BUS TRANSIT EXPERIENCE THROUGH<br />
RELIABLE AND EASY-TO-USE SERVICES<br />
In many cities, bus networks are inefficient, overlapping,<br />
irregular, have hard-to-read route maps, unbalanced<br />
coverage of the city and differing operating hours.<br />
This is often due to their organic historical expansion.<br />
Nevertheless, these systems are widely used and hold<br />
huge potential. Cities such as Seattle, Houston, Barcelona<br />
and São Paulo have successfully invested in redesigning<br />
their networks and improving service standards by:<br />
• Optimising bus routes to minimise overlap<br />
and ensure coverage across the city in line<br />
with demand. Houston, in the United States, respecified<br />
their service after the LRT was put in<br />
place to reduce overlapping of these services and<br />
to ensure transit coverage in other areas of the city.<br />
This resulted in a 7% increase in ridership.<br />
• Designing an intuitive network and easy-toread<br />
bus map. Since 2010, Barcelona in Spain<br />
has maximised the design value of its grid-based<br />
road network to incrementally implement a<br />
bus network with vertical North-South routes,<br />
horizontal East-West routes and diagonal routes –<br />
an intuitive design that makes it easy and practical<br />
for citizens to use.<br />
• Providing high-frequency, reliable services.<br />
The bus network can be divided into main routes<br />
and local routes, with different frequencies.<br />
Bus routes on main city arteries and roads used<br />
for longer distance travel will require frequent<br />
service, at least every 15 minutes. This is the<br />
minimum frequency at which the service is usually<br />
considered good enough for travellers to turn up<br />
without consulting a schedule. On local routes, a<br />
___ __<br />
Automated ticketing<br />
is a key component of<br />
a modern commuter<br />
transport system.<br />
RAPID RESPONSE TO COMMUTER NEEDS<br />
The South African National Department of Transport has implemented<br />
a Bus Rapid Transport Strategy to ensure swift movement of large<br />
numbers of people between parts of a city in a quick and safer way.<br />
Twelve municipalities were selected to participate in the programme<br />
to introduce to tackle transport challenges in major cities, including<br />
the Rustenburg Rapid Transport system in Rustenburg in North West<br />
Province and Leeto la Polokwane in Polokwane, Limpopo.
TRANSPORT<br />
less frequent service may be sufficient, depending on demand<br />
and provided that the service operates punctually according to<br />
the timetable. São Paulo has implemented this dual-frequency<br />
network timetable for the night shift, increasing night time<br />
ridership by over 70%.<br />
• Building regular bus stops for easy access. In Barcelona,<br />
the maximum distance between transit stops in the new bus<br />
network is 350m. In Seattle, the bus network upgrade plan will<br />
increase the percentage of households within 800m of frequent<br />
transit routes from 43% in 2015, to 73% by 2040.<br />
______ __ ___ __ _ _<br />
In large cities, mass transit<br />
options such as metro, light<br />
rail transit, trams and bus<br />
rapid transit are the most<br />
efficient and sustainable<br />
ways to move large numbers<br />
of people across the city<br />
___ __ ___ __ _ _ _ _<br />
REALLOCATE ROAD SPACE TO BUILD PUBLIC TRANSPORT INFRASTRUCTURE<br />
Most cities’ streets are designed for private vehicles first. This spatial<br />
bias must be rebalanced for public transport to deliver the reliable,<br />
high-frequency service necessary to become a viable alternative.<br />
Reclaiming road space for public transport can be quick, low-cost<br />
and incrementally implemented, but must be part of a long-term,<br />
holistic process. This process includes:<br />
• Allocation of street space for street-level mass transit options,<br />
particularly BRT and LRT. Both typically require dedicated<br />
corridors and lanes.<br />
• Improved bus shelters, upgraded transit terminals and space<br />
surrounding those terminals, ensuring a comfortable transit<br />
experience from journey start to end, including in waiting areas.<br />
IMPROVE GOVERNANCE OF INFORMAL TRANSPORT SYSTEMS<br />
In many Global South cities, a large volume of passenger traffic is<br />
often handled by the informal public transport sector (paratransit).<br />
The vehicles are usually small – minibuses or converted vans –<br />
privately-owned and with little regulation.<br />
In these cities, alongside improving the city’s main bus system,<br />
transit agencies should seek to organise and improve regulation of<br />
privately-owned transit industry. Agencies can establish vehicle<br />
REFERENCES<br />
[1] Financing Sustainable Cities Initiative (no date) Bus Rapid Transit:<br />
Reliable, convenient and efficient public transit. Available at:<br />
http://financingsustainablecities.org/ [Accessed 26 February 2019].<br />
[2] World Resources Institute India Ross Center (no date) Bus Karo 2.0<br />
– Case Studies from India, Chapter 8.3 Public Transport Subsidies<br />
[3] Sustainable Transport Award (2019) Winners<br />
and service standards on procurement renewals, or establish new<br />
formal public-private contracts. The Rea Vaya bus rapid transport in<br />
Johannesburg, South Africa, is an example of this approach.<br />
IMPROVE LOCAL AIR POLLUTION BY SHIFTING TO ZERO-EMISSION BUSES<br />
Travel using diesel bus exposes riders to high levels of air pollution. [5]<br />
Renewing outdated and polluting bus fleets by shifting to electric<br />
buses reduces air pollution exposure for bus riders and on the<br />
city’s streets while providing a more modern and comfortable<br />
bus experience.<br />
DELIVER EFFECTIVE MARKETING CAMPAIGNS TO<br />
BREAK DOWN CULTURAL BARRIERS<br />
Transit agencies must work to overcome the common cultural<br />
barriers that discourage people from choosing public transport.<br />
These will differ between cities but include ideas that public<br />
transport is “only” for low-income people, or that it isn’t fashionable.<br />
Car manufactures and new private car-hire companies advertise<br />
their products and services using slick and intelligent public<br />
relations campaigns. Public transit agencies should do the same to<br />
improve the public image of their services, and increase ridership<br />
numbers and fare revenues. Marketing campaigns should highlight<br />
positive personal stories of how individuals have benefited by<br />
using public transit. They should also be aligned with a compelling<br />
branding strategy that gives the public transit system a clear and<br />
attractive public identity.<br />
MAKE USE OF NEW TECHNOLOGIES AND APPS<br />
Transit agencies can make use of new technologies, such as<br />
smartphone applications, to make their services more fashionable<br />
and easier to use. At the same time, it will improve data collection,<br />
user perception of the service and reduce operational costs. For<br />
instance, Dar es Salaam’s DAR City Navigator app provides users<br />
with real-time information on multiple transit modes, allowing<br />
travellers to plan journeys rather than simply hoping for the best<br />
when they set out for work. Bogotá’s Safetipin app, meanwhile,<br />
allows women to rate their perception of personal safety on the<br />
transit system. This geo-referenced data will then be used by the city<br />
to design and prioritise interventions to improve the transit system<br />
and other public spaces. [6]<br />
Cities can partner with the private sector to develop these<br />
services. The Citymapper app, for example, operates in 39 cities<br />
globally and uses mobile and open transport data to help locals and<br />
visitors navigate public transport systems.<br />
Attractive public transport is the backbone of transit-oriented<br />
development and an essential component of cities’ efforts to drive a<br />
modal shift away from private vehicle use.<br />
[4] Deutsche Gesellschaft fur Internationale<br />
Zusammenarbeit (2011) Negotiating the deal to enable<br />
the first Rea Vaya bus operating company<br />
[5] Environmental Research (2015) Urban air quality comparison<br />
for bus, tram, subway and pedestrian commutes in Barcelona<br />
[6] Transformative Urban Mobility Initiative (no date) Innovative<br />
mobility ideas can win up to 200k for realization<br />
28 | www.opportunityonline.co.za
AEROSPACE INDUSTRY<br />
SUPPORT INITIATIVE<br />
Powering growth of the South African aerospace, defence and<br />
marine manufacturing sectors by providing aid and support to<br />
make the industry competitive in global technology markets.<br />
(012) 841-2913 | www.aisi.co.za<br />
An initiative of the Department of Trade, Industry and Competition, managed and hosted by the CSIR
ENGINEERING AND CONSTRUCTION<br />
Survival<br />
strategy<br />
Forward-thinking engineering and construction companies are<br />
weathering the Covid-19 storm by rethinking their strategic choices.<br />
The pandemic is threatening many companies’<br />
survival, but for those with an eye on the future,<br />
Covid-19 has brought an opportunity to rethink<br />
their strategies. In fact, mining engineering and<br />
construction companies that make the right<br />
strategic moves now can lock in their survival not only<br />
during the pandemic but well beyond.<br />
Power has shifted away from economic powerhouses<br />
such as Europe to strong emerging countries such<br />
as China. Engineering service providers and plant<br />
equipment manufacturers that have traditionally been<br />
strong in the Western world will now need to adjust<br />
to meet their customers’ needs and contend with<br />
escalating global competition.<br />
The pandemic has added even more pressure. A<br />
global decline in the demand for raw materials has<br />
postponed or even cancelled some mining projects,<br />
creating a substantial competitive burden. Also, the<br />
tightening criteria for green investments are making it<br />
even more difficult to finance “dirty” projects, such as<br />
in the coal industry.<br />
Mining engineering and construction companies<br />
that want to survive these unprecedented times will<br />
need to begin by addressing a compelling question: Quõ<br />
vãdis? Where are you marching? The leaders will chart<br />
a clear path through the pandemic to sustainably and<br />
profitably grow for the future.<br />
FOUR STRATEGIES FOR SURVIVAL<br />
The right commodities and geographies<br />
Identify the ideal commodities and relevant geographies,<br />
and then align the organisation accordingly. Having a<br />
clear view of where to play is essential to optimising the<br />
effectiveness of market-facing sales resources.<br />
Covid-19 has had a major impact on demand and<br />
has shifted business priorities. While demand for<br />
commodities such as iron ore, coking coal, thermal<br />
coal and bauxite plummeted and warehouses across<br />
the globe stocked up, the demand for precious metals<br />
such as gold and silver skyrocketed. After years of<br />
strong growth, coal is stable for the short term but faces<br />
an uncertain outlook in the long term. Steeply rising<br />
emission standards around the world have chipped<br />
away at demand for thermal coal as an energy source,<br />
but the fundamental demand for metallurgical coal for<br />
steel production will remain steady.<br />
The growth rate of iron ore is also expected to<br />
remain stable thanks to the ongoing demand for steel<br />
for infrastructure and automotive companies. Copper<br />
is expected to grow with continued electrification and<br />
infrastructure investments. Key growth drivers are a<br />
continued shift toward renewables, electrical vehicles,<br />
and growth in developing countries.<br />
Africa is home to less than 1% of global commodities,<br />
spread over a fragmented playing field of many<br />
countries that are hard to do business with. Making<br />
matters even more challenging, China’s growing<br />
influence is shrinking Western players’ market access.<br />
Mining engineering and construction companies<br />
must address four strategic market-related questions:<br />
• Which raw materials are the best ones to focus on<br />
for the short term amid Covid-19 market shifts, and<br />
which commodities are best for the long term?<br />
• Which geographical regions and countries are the<br />
ideal playfields?<br />
• How can the portfolio be optimised for each region?<br />
• How can margins be protected and growth funded<br />
in a tough market environment?<br />
___ __<br />
Key growth drivers<br />
are a continued shift<br />
toward renewables,<br />
electrical vehicles,<br />
and growth in<br />
developing countries.<br />
30 | www.opportunityonline.co.za
ENGINEERING AND CONSTRUCTION<br />
www.kearney.com<br />
Help customers cope with a changing environment<br />
Because of the nature of the industry, capital<br />
expenditures will always be relevant. Past EBITDA<br />
will drive capital expenditures in the coming years. Be<br />
clear about which customers to pursue and how best to<br />
approach them.<br />
Having a good understanding of the financial power<br />
of existing and potential new customers is essential to<br />
setting the right commercial strategy and initiatives.<br />
Classifying customers and communicating this<br />
internally encourages the company to stay focused.<br />
However, this could also mean adjusting or eliminating<br />
customer interactions that don’t add value.<br />
Global sales organisations should mirror the client’s<br />
base and allow for a local presence close to the most<br />
important customers. Consider not only the big mining<br />
companies but also intermediates such as engineering<br />
companies (engineering, procurement and construction<br />
or engineering, procurement and construction management).<br />
Intermediates are independent service providers<br />
that support the big miners in early project phases (for<br />
example, an order of magnitude); they are technologyneutral<br />
and influenceable. A close customer relationship<br />
creates an informative advantage, which leading<br />
companies use to improve the quality of project offers.<br />
Mining engineering and construction companies<br />
must address four strategic customer-related questions:<br />
• What impact is Covid-19 having on customers’<br />
financial performance and stability?<br />
• Which customers are the right ones to go for, and<br />
how does the global commercial presence match?<br />
• What is the risk appetite to win deals?<br />
• What is the best way to build the right ecosystem<br />
of partners?<br />
Take advantage of the aftermarket,<br />
or improve your skills<br />
During the escalating complexity of large projects,<br />
mining companies pass on risks to their suppliers.<br />
Capitalise on the aftermarket, or improve your skills to<br />
cope with the new challenges of capital projects.<br />
Most mining companies face challenges in dealing<br />
with Capex projects. They report that 68% of capital<br />
projects are behind schedule, and 62% are above the<br />
original budget. As a result of trying to overcome this<br />
poor performance, most companies are following a<br />
similar strategy.<br />
Rather than developing skills to keep their projects<br />
on track, mining companies are changing their buying<br />
behaviours to close the gap in project management.<br />
In other words, they are pursuing one-stop solutions<br />
and passing the risk to their suppliers (the mining<br />
equipment providers). In their search for the supplier<br />
___ __ ___ __ _ _<br />
Africa is home to less<br />
than 1% of global<br />
commodities, spread<br />
over a fragmented<br />
playing field of many<br />
countries that are hard<br />
to do business with<br />
___ __ ___ __ _ _<br />
with the lowest risk of failing, they require the mining<br />
equipment provider to have references from similar<br />
projects. So it’s not only the company’s technical<br />
ability that is required to be competitive; it also needs a<br />
significant number of references to back up this ability.<br />
Mining companies are forcing their equipment<br />
providers to engage in construction activities, but many<br />
are not ready to take on the task. Equipment providers’<br />
traditional business model was the customised<br />
engineering design and supplying the required systems<br />
for a specific application. In many cases, the equipment<br />
provider would also step into a supervising role on the<br />
construction of its equipment on site. However, the<br />
provider would not assume complete responsibility<br />
for the construction process and all of its difficulties<br />
and risks. Traditionally not their core business, mining<br />
equipment providers often have poorly developed<br />
capabilities to manage large construction projects.<br />
Instead, if they must deliver turnkey solutions, new<br />
personnel must often be found quickly.<br />
Further decreasing the attractiveness of the project<br />
business for traditional equipment providers, mining<br />
Four strategies for survival<br />
___ __<br />
Having a good<br />
understanding<br />
of the financial<br />
power of existing<br />
and potential new<br />
customers is essential<br />
to setting the right<br />
commercial strategy<br />
and initiatives.<br />
Four strategies can help mining companies survive the Covid-19 pandemic<br />
www.opportunityonline.co.za | 31
ENGINEERING AND CONSTRUCTION<br />
companies have started to use low-cost competitors as<br />
a reference point for price setting. While those players<br />
cannot yet compete with traditional companies on the<br />
number of references, miners are seeing at what prices<br />
similar equipment could be provided, escalating the<br />
demand for tenders and negotiations. And now with<br />
Covid-19 triggering a drop in the number of projects,<br />
more companies are running to get a stake in a<br />
shrinking market.<br />
The combination of higher risk from turnkey<br />
solutions, significant cost pressure from low-cost<br />
players, and fewer market opportunities make<br />
traditional mining equipment providers view capital<br />
projects as an unprofitable business.<br />
To counteract the escalating risk and pressure on<br />
costs, many original equipment manufacturers (OEMs)<br />
are de-emphasising their project business (engineering,<br />
supply and construction of customised engineering<br />
solutions) in favour of providing off-the-shelf products<br />
such as mills and crushers. Successful OEMs generate<br />
a stable high-margin aftermarket business from these<br />
products. Key success factors for this business model<br />
are having a large installed base of equipment in highwear<br />
operations and being able to service the products<br />
quickly and efficiently.<br />
In addition to providing a stable aftermarket<br />
business, a large installed base of equipment serves as<br />
a credible reference and competitive advantage during<br />
tenders and creates an opportunity to learn from the<br />
performance of the installed equipment (machine<br />
learning-based maintenance). Given the need for a large<br />
installed base and a global network of service centres,<br />
it becomes clear that scale is essential to success in the<br />
product business.<br />
Players that are late to the game, which means they<br />
lack a significant number of references or those that<br />
don’t have the resources to establish a efficient service<br />
network to win in the off-the-shelf product business,<br />
have to face their dependence on the unfavourable<br />
“pure” project engineering business where there is no<br />
physical product or aftermarket service. Their success<br />
will hinge on a significant increase in capabilities to be<br />
able to cope with the changing environment.<br />
The most important skills for these players are the<br />
ability to develop cost-optimised designs and frontend<br />
loading of engineering resources to efficiently<br />
source required materials and smoothly manage onsite<br />
construction. This will allow them to compete with lowcost<br />
competitors.<br />
Mining engineering and construction companies<br />
must address four strategic questions:<br />
• What are the best technologies to bet on?<br />
• Which differentiating short-term and long-term<br />
factors can create a competitive advantage?<br />
• What are the required resources to possibly gain<br />
from the aftermarket?<br />
• What skills can attract a positive cash flow?<br />
Consolidate, or be acquired<br />
M&A activities create a growing scale of competitors. Be<br />
clear about your value proposition, market positioning,<br />
strengths, weaknesses, opportunities and threats.<br />
It’s better to have a clear strategy as opposed to<br />
opportunistic moves with no clear direction.<br />
Larger scale allows equipment providers to have a<br />
large installed base of equipment and to sustain a global<br />
network of service centres, both of which are vital to<br />
generating a stable high-margin aftermarket business.<br />
The recent M&A spike in the mining equipment<br />
industry is no surprise.<br />
Another reason for engineering solution providers to<br />
increase their scale is the diversification of risk that is<br />
inherent in single projects. Lastly, the relative impact<br />
of one poorly executed project on a player’s profitability<br />
decreases with scale.<br />
In another interesting trend, Chinese players are<br />
acquiring European companies to gain access to<br />
Western markets. As a result, Western players will<br />
face stiffer competition from China during tenders or a<br />
potential acquisition from a Chinese competitor.<br />
Covid-19 is causing economic and financial challenges<br />
for many players in the industry, which can be a good<br />
time to keep an eye open for potential acquisition targets<br />
Mining engineering and construction companies must<br />
address three strategic growth-related questions:<br />
• What are the strategic options – either organic or<br />
inorganic – to satisfy shareholders?<br />
• Which partners can help bridge the strategic gaps,<br />
and how can the company improve the perceived<br />
value to these potential partners?<br />
• Which attractive acquisition targets are struggling<br />
amid the pandemic?<br />
PUTTING STRATEGIES INTO PRACTICE<br />
Each set of questions in the four strategies comes<br />
with trade-offs that must be well understood before<br />
making any decisions. But the strategy is about<br />
more than deciding what to do. It’s also about clearly<br />
communicating what not to do.<br />
Defining the right strategies is a complex undertaking<br />
that requires deep outside-in market expertise as well<br />
as inside-out involvement from the C-suite and broader<br />
management. Management buy-in is essential to a<br />
successful implementation.<br />
___ __<br />
Be clear about your<br />
value proposition,<br />
market positioning,<br />
strengths, weaknesses,<br />
opportunities and threats.<br />
32 | www.opportunityonline.co.za
LOCAL TALENT,<br />
INTERNATIONAL IMPACT<br />
Providing our customers with technical and in-depth industry<br />
knowledge, products and services they need to ensure streamlined<br />
operations, AR Jones Engineering provides solutions and equipment<br />
to a diverse range of sectors, including the steel, oil and gas<br />
and maritime industries and to municipalities in South Africa.<br />
We specialise in the maintenance and repair of heavy-duty industrial equipment<br />
across sectors and source and supply premium OEM pumps and valves. We<br />
also advise companies on how to optimise processes in order to achieve<br />
energy efficiencies.<br />
Our workforce includes industrial and engineering specialists, electricians,<br />
fitters and welders. The capability, dedication and commitment of our people ensures that<br />
we always deliver the highest quality services to our customers.<br />
Maintenance and repairs of heavy-duty industrial equipment<br />
Our technical knowledge and in-house experience ensure that we are well-equipped to<br />
assist industry and municipalities in meeting the maintenance and repair requirements<br />
of their critical assets. We are skilled at sourcing and managing maintenance and repair<br />
teams and conduct this work on site. We also offer welding services for the oil and gas<br />
industry and have industry welding procedures certification (ASME IX).<br />
Source and supply premium<br />
OEM pumps and valves<br />
We have trusted relationships with<br />
premium suppliers of quality pumps<br />
and valves, and can advise on, source<br />
and supply the equipment needed<br />
by our customers for their effective<br />
operations. We are the appointed agents for the German manufacturer Wangen Pumpen,<br />
manufacturers of standard and customised progressing cavity and twin-screw pumps for<br />
the biogas, food and beverage, agriculture and wastewater treatment markets.<br />
Energy efficiency advisory services<br />
We advise companies on how to optimise their energy consumption. Our in-depth<br />
understanding of energy technology and solutions and our experience in the power<br />
sector ensures that we are well-placed to advise our customers on meeting their energy<br />
requirements and on improving the energy efficiency of their operations. We offer energy<br />
assessments on behalf of the National Cleaner Production Centre South Africa.<br />
info@arjones-engineering.com | www.arjones-engineering.com<br />
AR Jones is a Level 1 B-BBEE company<br />
and is ISO9001 compliant<br />
AR Jones Engineering was founded by<br />
Antonio Jones in 2016. Jones is a qualified<br />
chemical engineer (B.Eng, Stellenbosch)<br />
and a certified energy auditor, trained<br />
as a consultant for the National Cleaner<br />
Production Centre. He previously worked<br />
for Eskom and ArcelorMittal South Africa.<br />
Having worked his way up from the<br />
factory floor to management after<br />
successfully completing his engineering<br />
degree, Jones now has longstanding<br />
trusted relationships in the industry. He<br />
is passionate about entrepreneurship<br />
and is a business mentor, assisting small<br />
businesses in his community to succeed.<br />
ENGINEERING<br />
PROFILE
Come and explore the Diamond Fields,<br />
situated in the Frances Baard District,<br />
a place of wide-open spaces and arid<br />
natural beauty. The region is defined by<br />
the diamond rush of the 19th century;<br />
apart from its mining roots, the area<br />
has many more experiences to offer,<br />
including cultural attractions, the<br />
beautiful outdoors and agri-tourism.<br />
Nature lovers will feel at home, as<br />
there are several game farms and<br />
waterways in the region where visitors<br />
can spot endangered game species and<br />
a wonderful variety of endemic birds.<br />
WELCOME TO SOUTH AFRICA’S FABLED DIAMOND FIELDS<br />
SOL PLAATJE LOCAL MUNICIPALITY<br />
This municipality is named after the first secretarygeneral<br />
of the African National Congress, and<br />
writer, Solomon Plaatje. At the heart of Sol Plaatje<br />
Municipality is the bright metropolis of Kimberley,<br />
the capital city of the Northern Cape Province.<br />
Kimberley and its surrounds trigger the interest<br />
of different kinds of tourism enthusiasts, from<br />
leisure to adventure, history and art lovers.<br />
Enjoy an adrenaline-filled skateboarding session<br />
at the Kumba Skate Park, pop in at the Star of<br />
the West restaurant that is full of rich mining<br />
history or visit the Dornfield Nature Reserve<br />
for an ideal weekend getaway filled with birdlife,<br />
wildlife and attractive accommodation.<br />
PHOKWANE LOCAL MUNICIPALITY<br />
Phokwane embraces Hartswater, Pampierstad<br />
and Jan Kempdorp. Hartswater, labelled as an<br />
oasis on the edge of the<br />
Northern Cape, intrigues<br />
those interested in pristine<br />
landscapes, photographs<br />
and frequent stops. The<br />
area is home to Cotton<br />
SA, which offers an<br />
idealistic agri-tourism<br />
experience where visitors<br />
are familiarised with the<br />
production process of<br />
cotton and boasts with a<br />
variety of nuts and local<br />
wines. Phokwane also offers<br />
leisure activities, historical<br />
and natural attractions.<br />
LOCAL<br />
MUNICIPALITIES<br />
& ATTRACTIONS<br />
MAGARENG LOCAL MUNICIPALITY<br />
The name Magareng is a Setswana<br />
word meaning “The Middle” and<br />
is derived from the fact that this<br />
region is literally in the middle<br />
of the country. Warrenton is an<br />
agricultural town located 70km<br />
north of Kimberley on the Vaal<br />
River and is the administrative<br />
centre of the municipality. The<br />
area offers significant historical<br />
value along with pristine natural<br />
landscapes that include the<br />
Spitskop and Vaalharts Dams where<br />
water activities can be enjoyed.<br />
DIKGATLONG LOCAL MUNICIPALITY<br />
Dikgatlong is a Setswana word<br />
meaning “Confluence”, referring<br />
to the place where the Harts<br />
and Vaal Rivers flow into one<br />
another. The area is home to the<br />
site of the first alluvial diamond<br />
diggings in the region and is<br />
renowned for its excellent flyfishing<br />
spots and luxury game<br />
lodges. Visitors can explore the<br />
Barkly-West Museum which<br />
displays local geology, archaeology<br />
and the history of the town, visit<br />
the prehistoric Nooitgedacht<br />
glacial paving, which was forged<br />
250-million years ago and explore<br />
the Gong-Gong Waterfall and<br />
its pristine natural scenery.<br />
Frances Baard District Municipality<br />
Tel: 053 838 0911<br />
www.francesbaard.gov.za