Opportunity Issue 105

Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI). Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

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www.opportunityonline.co.za APRIL/MAY/JUNE 2023 • ISSUE 105 Closing the fashion loop Sustainable Production Africa Summit 2022 was a great success How small business can benefit from renewable energy A report charts the way to a brighter future through renewables for small and medium businesses The circular epoch has begun Waste turned into school shoes and fertiliser show where opportunity lies A new way of delivering water RAND WATER CE SIPHO MOSAI REFLECTS ON THE OPTIONS FACING SOUTH AFRICA

www.opportunityonline.co.za APRIL/MAY/JUNE 2023 • ISSUE <strong>105</strong><br />

Closing the fashion loop<br />

Sustainable Production<br />

Africa Summit 2022 was<br />

a great success<br />

How small business can benefit<br />

from renewable energy<br />

A report charts the way to a<br />

brighter future through renewables<br />

for small and medium businesses<br />

The circular epoch has begun<br />

Waste turned into school<br />

shoes and fertiliser show<br />

where opportunity lies<br />

A new way of delivering water<br />

RAND WATER CE SIPHO MOSAI REFLECTS ON<br />

THE OPTIONS FACING SOUTH AFRICA


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Banks find new growth in<br />

next generation networks<br />

Kevin Odudoh, Executive Head of BFSI Sector at Vodacom Business,<br />

outlines what to expect when migrating from MPLS to SD-WAN.<br />

If you are a large bank with multiple points of presence across<br />

the country, continent or even globally, you need to be able<br />

to leverage the best technologies available to remain agile,<br />

competitive and future fit.<br />

In addition, an increasing number of employees are choosing<br />

to work remotely, and more BFSI (Banking, Financial Services and<br />

Insurance) customers are opting for digital channels, putting pressure<br />

on BFSI organisations to move their internal and customer-facing<br />

applications to the cloud. This increases the demand on networks to<br />

deliver reliable and secure services from anywhere, using any available<br />

transport medium, whether it’s dedicated leased lines, open Internet<br />

or GSM-based access services like 4G and 5G.<br />

However, many BFSI organisations are still running pure Multiprotocol<br />

Label Switching (MPLS) technology to connect their branches, offices<br />

and data centres, which is also proving too costly.<br />

The solution<br />

One of the ways to modernise your network is by leveraging a Software<br />

Defined Wide Area Network (SD-WAN).<br />

According to Gartner, “Vodafone identified as a Leader in the 2022<br />

Gartner Magic Quadrant for Network Services, Global”:<br />

• By 2025, 65% of enterprises will have implemented SD-WANs,<br />

compared with approximately 45% in 2021.<br />

• By 2025, 40% of all enterprise locations will use Internet access as<br />

their only WAN transport, compared with less than 20% in 2021.<br />

Kevin Odudoh, Executive Head of BFSI Sector at Vodacom Business,<br />

has an MBA in Global Business, Entrepreneurship and Innovation<br />

from IE Business School, Madrid, and a BSc Degree in Mathematics<br />

and Statistics from the University of Nairobi. Prior to joining<br />

Vodacom Business, he worked in national, regional and global<br />

sales leadership roles, most recently as Global Account Manager,<br />

responsible for the global business relationship between Vodafone<br />

Business and the largest financial-services clients in Africa and the<br />

Middle East.<br />

Migrating to a SD-WAN, a next generation network, which is the<br />

backbone for many of today's most important technologies, can help<br />

BFSI organisations to use the Cloud more effectively, manage businesscritical<br />

traffic more efficiently across a network and enhance cybersecurity<br />

all the way from the end users and clients to the cloud.<br />

“Choosing the right SD-WAN technology is critical when transitioning<br />

from a pure MPLS network. Factors to consider include your cloud<br />

strategy, business applications, geographic presence, employee<br />

profiles and customer experience,” says Kevin. “Data and Security are<br />

also key considerations, because how you collect and leverage data,<br />

and which security processes and tools you have or are willing to invest<br />

in, will influence the SD-WAN technology you choose,” he adds.


SD-WAN TECHNOLOGY<br />

_________________<br />

Migrating from MPLS to SD-WAN is<br />

becoming a no-brainer<br />

________________<br />

Deployment and transition<br />

Any transformation project has inherent risks. “Scope, cost and<br />

time are constraints that need to be carefully understood and<br />

managed to ensure quality delivery. Usually, a controlled pilot<br />

can help to identify risks and mitigation plans, and even assist<br />

in choosing between technology alternatives before a scaled<br />

roll-out,” says Kevin. “From experience, however, this is the easier<br />

part. Often, the hard part is ensuring seamless contracting and<br />

transition between service providers. This is especially true<br />

if there are several supplier contracts across the networking<br />

stack, including routers, switches, firewall and access links across<br />

multiple territories. To ensure speed to value with minimal<br />

scope creep, choosing the right provider with experience in<br />

delivering large-scale network-transformation projects is key,”<br />

explains Kevin.<br />

Juggling a multitude of regional contracts is common in<br />

multinational banks with global operations, where each country<br />

invariably has its own budgetary constraints, challenges and<br />

demands. The one commonality is that a multinational's head<br />

office often desires to source a service (like SD-WAN) from a single<br />

supplier and be able to provide the same user experience across all<br />

its branches. “For highly dispersed multinational banks, SD-WAN is<br />

ideal, affording a single view across the entirety of their network,”<br />

adds Kevin.<br />

The benefits<br />

By opting for one service provider, customers benefit from volume<br />

pricing. Furthermore – and crucial for banks with a large physical<br />

footprint – they can have the reassurance that comes from working<br />

with a Tier 1 operator. Vodacom was the first service provider in<br />

Africa to achieve the prestigious MEF 3.0 SD-WAN certification,<br />

which confirms that its services comply with the highest industry<br />

standards for performance, assurance and agility.<br />

Legacy networks “work” so to speak but are not optimised<br />

for future-ready businesses. One of the best features of an SD-<br />

WAN deployment is the fact that it uses any existing broadband<br />

infrastructure and does not require the ripping and replacement<br />

of legacy systems.<br />

The rationale for migrating to next-generation networks is as<br />

clear as it is compelling – SD-WAN networks are a significantly<br />

better fit strategically for Cloud services, IoT, digital twins and unified<br />

communications. It is particularly relevant for well-established<br />

global banks who were traditionally bound to an expensive legacy<br />

access infrastructure for their wide area networks. In contrast, nextgeneration<br />

SD-WAN networks open them up to utilising low-cost<br />

Internet connectivity.<br />

Disruption to business continuity need not be a concern. Banks<br />

can have a hybrid setup, maintaining some of their legacy MPLS<br />

wide-area networks, while moving branches individually to SD-WAN.<br />

Depending on their transformation roadmap, banks could adopt a<br />

phase-in phase-out approach, running a hybrid network with legacy<br />

MPLS VPN in some branches and SD-WAN in others, and then migrate<br />

those branches that are still on the legacy networks over time.<br />

Futureproofed for the digital era<br />

Beyond modernising their infrastructure and availing themselves<br />

of the cutting-edge technology, the underlying reason behind<br />

migrating from legacy networks to a Software Defined Network is<br />

that it affords BFSI organisations greater agility and the ability to open<br />

up new revenue streams.<br />

In recent years, banks have been pressured to diversify their<br />

offerings to remain competitive in response to mobile players<br />

like Apple and Google moving into banking and fintechs such as<br />

Chime capturing market share. However, for a bank to expand into<br />

other verticals without jeopardising its core business requires a<br />

greater degree of agility, which is ultimately what next-generation<br />

networks offer.<br />

For banks, time is of the essence. In 2021, the EY NextWave Global<br />

Consumer Banking Survey urged incumbent banks around the<br />

world to “act with urgency to protect their advantages, which are<br />

under direct attack by these new providers.“ It added that banks<br />

must also “build new business models capable of satisfying today’s<br />

consumer needs and evolve and scale to meet future needs and<br />

market developments.“<br />

This is exactly what Vodacom Business can enable for banks<br />

today. By migrating to SD-WAN, banks are future-proofed and<br />

ideally positioned to take advantage of a nimble network. They can<br />

use big data, along with machine learning and artificial intelligence,<br />

to refine their processes and better cater to their customers' needs<br />

and thus remain relevant.<br />

www.opportunityonline.co.za | 3


Contents<br />

ISSUE <strong>105</strong> | APRIL / MAY / JUNE 2023<br />

08<br />

10<br />

12<br />

13<br />

14<br />

16<br />

18<br />

20<br />

MAINSTREAMING SUSTAINABILITY<br />

The Editor’s Notes reflect on this issue’s theme – how sustainability is everyone’s business and<br />

every sector of business, industry and society is working on how best to achieve it.<br />

DYNAMIC RUSTENBURG ENTREPRENEUR IS CREATING OPPORTUNITIES FOR<br />

OTHER WOMEN<br />

Sina Makgatlha is driving change in multiple business sectors while expanding the North West’s<br />

first female business chamber, the Chamber of Commerce for Women in Business, one of SACCI’s<br />

newest members.<br />

DIRECTORS ASSOCIATION<br />

SACCI member profile.<br />

CHARTERED INSTITUTE FOR BUSINESS ACCOUNTANTS (CIBA)<br />

SACCI member profile.<br />

A NEW WATER DELIVERY MODEL IS NEEDED<br />

Rand Water CE Sipho Mosai explains that adding more water to the system will not be enough<br />

to future-proof it, new methods and ways of thinking are required.<br />

UTILITY FINANCES<br />

Rand Water is growing and investing in infrastructure but its financial viability is threatened by<br />

cumulative municipal debt of R5.8-billion.<br />

WHAT MUNICIPALITIES CAN DO TO PROMOTE EFFICIENT WATER DELIVERY<br />

Municipalities can play a big role in reducing water loss, which will create manageable waterdemand<br />

volumes and allow purification systems to deliver more efficiently. Rand Water has<br />

also identified the major supply interruption factors hampering effective water purification and<br />

primary pumping.<br />

CLOSING THE FASHION LOOP<br />

Caroline Nelson, Country Manager, CEO, H&M Southern Africa, reflects on the successes of the<br />

Sustainable Production Africa Summit 2022.<br />

10<br />

14<br />

20<br />

18


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Contents<br />

ISSUE <strong>105</strong> | APRIL / MAY / JUNE 2023<br />

32<br />

38<br />

40<br />

44<br />

48<br />

54<br />

56<br />

58<br />

THE DAWN OF A NEW ERA FOR BUSINESS<br />

Bridget Wijnberg and Catherine Wijnberg of entrepreneurial support programme<br />

provider Fetola describe the beginnings of the circular epoch.<br />

OPERATIONALISING THE MINING OF TOMORROW<br />

The 2023 Investing in African Mining Indaba had a distinctly future-oriented focus.<br />

One of the event’s associate sponsors, dss + , presented its sustainable operations vision.<br />

PRESIDENT RAMAPHOSA REASSURES INVESTORS THAT MINING CHALLENGES<br />

ARE BEING ADDRESSED<br />

The Webber Wentzel Mining Team summarises the points raised by President<br />

Cyril Ramaphosa in his address to the Investing in African Mining Indaba 2023<br />

and comments on key aspects of the speech.<br />

HOW SMALL BUSINESS CAN BENEFIT FROM RENEWABLE ENERGY<br />

Pieter Bensch, Executive Vice President for Sage Africa & Middle East, reports on the way<br />

to a brighter future through renewables for small and medium businesses.<br />

TRANSNET DIGITISES FREIGHT SERVICES<br />

Huawei's all-optical backbone network for railways has been introduced in South Africa.<br />

BUSINESS TRAVEL INDUSTRY TRENDS UNPACKED<br />

Marc Wachsberger, CEO of The Capital Hotels and Apartments, explains how travellers and<br />

companies can continue to get value for money in the new environment.<br />

SOUTH AFRICA'S TOP FIVE MOST EMPLOYABLE SKILLS<br />

Melissa van Aswegen of the Skills Development Corporation highlights the skills most in<br />

demand in the country.<br />

THE OUTLOOK FOR SMALL AND MEDIUM BUSINESSES<br />

For SMEs, says David Morobe, Executive General Manager for Impact Investing at<br />

Business Partners Limited, current global and local economic trends demand adaptability<br />

as a key to success.<br />

38<br />

40<br />

58<br />

44


The picturesque Table Mountain and the<br />

golden beaches of Fishhoek await at the<br />

33rd International Rail Safety Council<br />

T<br />

he Railway Safety Regulator (RSR) will be<br />

hosting the international rail community for the<br />

International Rail Safety Council (IRSC) from<br />

01 - 06 October 2023 in Cape Town, South Africa.<br />

The IRSC is a forum that brings together railway safety<br />

professionals from all over the world to exchange<br />

information and provide experiences and lessons to<br />

improve railway safety.<br />

The world-class Century City Conference Centre<br />

will be the venue for the duration of the conference,<br />

while several operators from across the Western Cape<br />

province have partnered with the Regulator to showcase<br />

their operations, technologies and maintenance<br />

regimes during the technical tours.<br />

With close to 350 local and international delegates<br />

expected to attend, the IRSC makes a crucial contribution<br />

to the continued development of international safety<br />

and performance.<br />

Both private and public sector organisations are<br />

invited to partner with the RSR through sponsorship<br />

opportunities in exchange for lucrative marketing and<br />

profiling prospects. By sponsoring the conference, your<br />

organisation will have co-branding opportunities and<br />

access to a complete electronic database of delegates<br />

after the event. Exhibitors, sponsors and delegates<br />

will also get the chance to network with like-minded,<br />

influential people from the rail sector, while getting<br />

insights into trends from around the world. Set your<br />

company apart from the rest by acquiring unique<br />

knowledge from a diverse pool of individuals while<br />

showcasing your business with potential clientele and<br />

valuable partners. For enquiries and detailed information<br />

on exhibitions, sponsorships and registrations, contact<br />

secretariat@irsc2023.com<br />

Visit the IRSC website at www.irsc2023.com to<br />

register.


Mainstreaming<br />

sustainability<br />

Eskom’s inability to provide the power that South Africa needs to function optimally has<br />

made energy everyone’s business.<br />

Various business organisations and individual business leaders are making their opinions<br />

known and various interventions and support mechanisms are being implemented<br />

in an effort to find solutions to an expensive and economically damaging problem. A<br />

Resource Mobilisation Fund has been started to support the initiatives of the National Energy Crisis<br />

Committee and President Cyril Ramaphosa has appointed a new minister, a Minister of Electricity.<br />

He chose for this position the man who had been head of the Investment and Infrastructure Office in<br />

the Presidency, Kgosientso Ramokgopa, a respected civil servant with a reputation for dealing in facts.<br />

While Eskom grapples to fix its systems and repair ageing infrastructure, the country is also seized with<br />

the necessity to make a transition from fossil fuels to renewable energy. The debate is no longer about<br />

whether this needs to happen, rather about how and how long it will take.<br />

Sustainability is a now a mainstream issue and every sector of business, industry and society is<br />

working on how best to achieve it.<br />

In this issue<br />

In <strong>Opportunity</strong> <strong>105</strong>, Rand Water lays out its programmes and future plans for providing water. One<br />

utility can obviously not be responsible for the kinds of massive changes that have to be undertaken<br />

to transform South Africa’s water sector. Rand Water CEO Sipho Mosai makes clear that a total rethink<br />

is needed in how the country extracts, stores and uses water so that water provision can indeed<br />

be done sustainably.<br />

The fashion industry encompasses many subsectors, and all of them have important roles to play<br />

in making more sustainable the making, selling, distribution and disposal of clothing. Interviewee<br />

Caroline Nelson, Country Manager, CEO, H&M Southern Africa, reports that her company’s<br />

Sustainable Production: Africa Summit 2022 was a success but makes the point that for it to be<br />

truly successful, there has to be follow-through. H&M’s land-regeneration project among sheep<br />

farmers in the Eastern Cape is also mentioned.<br />

Bridget Wijnberg and Catherine Wijnberg of entrepreneurial support programme provider Fetola<br />

write about how the time has come to act, there have been enough COPs. Fetola is supporting<br />

businesses who want to be part of the circular economy through its Circular Economy Accelerator.<br />

They report on profitable recycling opportunities in plastic bags (school shoes), sewage (fertiliser)<br />

and car oil.<br />

The 2023 Investing in African Mining had several contributions related to sustainability. One of<br />

them was from consulting group dss+, and its report on its vision for its sustainable operations in<br />

the mining sector makes for interesting reading. As does the commentary by the Webber Wentzel<br />

mining team on the address made by President Ramaphosa to the conference. Most of his comments<br />

are welcomed by the authors, but the report card also has “room for improvement” in several<br />

areas, including the mining licence regime and the approval process for renewable energy projects.<br />

Renewable energy is the subject of an article by Pieter Bensch, Executive Vice President for Sage<br />

Africa & Middle East. He points out that there are terrific opportunities for small and medium businesses<br />

in the switch to renewables and suggests ways of tackling challenges in that regard. For<br />

logistics operators, the introduction of Huawei’s all-optical backbone network for railways in South<br />

Africa should be good news.<br />

Two tourism articles are featured. One article deals with business travel trends in South Africa<br />

(Marc Wachsberger, CEO of The Capital Hotels and Apartments) while the high costs associated with<br />

global travel is behind the partnership with Mastercard that is reported on in an article authored by<br />

Travelstart. Both suggest that it is possible to get more bang for your buck if you plan ahead and<br />

take advantage of deals that are offered.<br />

John Young, Editor<br />

8 | www.opportunityonline.co.za<br />

www.opportunityonline.co.za<br />

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Clinical documentation availible on request.<br />

This product has not been evaluated by the SAHPRA.<br />

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2018/01/26 1:53 PM


SACCI<br />

Dynamic Rustenburg entrepreneur is<br />

creating opportunities for other women<br />

Sina Makgatlha is driving change in multiple business sectors while expanding<br />

the North West’s first female business chamber, the Chamber of Commerce for<br />

Women in Business, one of SACCI’s newest members.<br />

• Leading the compilation processes of key strategic mandatory<br />

documentation for local government such as OPEX and CAPEX.<br />

• The skills of being a team player, time management and people<br />

management.<br />

• New and innovative methods of running businesses in the current<br />

economic climate and sourcing funding.<br />

What made you think of starting your own company?<br />

I grew up under the shadow of my father, Joseph Makgatlha, who is<br />

now 87. From as early as the 1960s he had already built his own shop,<br />

a mechanical business he ran from home. He was a brick manufacturer<br />

and a commercial farmer of sunflowers. Through these business<br />

ventures he created many jobs in our village. He remained one of the<br />

largest producers of sunflower until about 1995 when he had started<br />

to mentor emerging farmers, even in neighbouring countries.<br />

The freedom to be independent and to contribute towards the<br />

challenges that we face as a country. That’s what motivates me.<br />

Sina Makgatlha, founder and CEO of Kgotlaetsile Holdings (Pty) Ltd<br />

Where did you grow up?<br />

I was born and bred in a little rural village just outside Rustenburg<br />

called Mabeskraal. Mabeskraal is predominantly renowned for its rich<br />

history. It is currently known for its large deposits of chrome and it has<br />

good agricultural potential.<br />

Where did you start working?<br />

I started to work at Invest North West in 2004 and ultimately went on<br />

to work for the Rustenburg Local Municipality, Water and Sanitation<br />

Unit within the Technical and Infrastructure Services in 2007.<br />

From 2008 I started my business journey through the co-ownership<br />

of a restaurant in the Rustenburg CBD town with my sister. I went on<br />

to enter the construction sector through a company called Kamano<br />

Trading which did a lot of work with Anglo Platinum Mines (Bleskop<br />

Shaft) through to 2013.<br />

What skills did you learn in that time?<br />

• Financial management through the application of various<br />

measures, including council’s cost-containment measures.<br />

Where did you spot a gap for your startup businesses?<br />

A noticeable and long-standing gap has been created by many<br />

services still being imported into our country. This relates to the<br />

manufacturing of engineering equipment, core mining services,<br />

management-consulting services and software development<br />

and technology. What is not imported, a small fraction of goods<br />

and services, is then very often made in South Africa by large<br />

monopoly companies.<br />

Therefore I developed a keen interest in core mining and miningsupport<br />

services. These included hauling, vamping and drilling.<br />

Were there people who helped or inspired you at the time?<br />

Indeed, I would absolutely not have been able to do it alone. When I<br />

started Kgotlaetsile Holdings Group of Companies in late 2019 I was<br />

advised on each and every step by a well-established businessman.<br />

He assisted by providing professionals to register and set up the<br />

company and gave me continuous advice and guidance. He remains<br />

one of the most successful and astute businessmen in Rustenburg. He<br />

also demonstrated a passion for helping to develop, build and mentor<br />

aspiring entrepreneurs. He remains an inspiration to me to break all<br />

frontiers and surpass all barriers. He remains my source of inspiration.<br />

10 | www.opportunityonline.co.za


industry-related documentation. CCWB meets with its members on<br />

a regular basis for workshops, luncheons, golf days, gala dinners and<br />

training seminars.<br />

The CCWB is a registered NPC, POPIA-registered and SACCI-affiliated,<br />

among other affiliations. We have partnered with government, the<br />

private sector and financial institutions such as Standard Bank. All<br />

CCWB policies are in place and have been adopted.<br />

CCWB recently signed a Memorandum of Understanding with<br />

Impala Rustenburg Operations and is engaging with other entities.<br />

After Covid-19, CCWB hosted its first event in partnership with<br />

Standard Bank and followed that with hosting the two-day visit of the<br />

Consul General of India. We also hosted a Professionals-Only Summit<br />

with 100 practising attorneys, accountants, medical practitioners and<br />

engineers in July 2022. And many more.<br />

Tell us about the early stages of your first business.<br />

I started small with small contracts. Some of them were totally unrelated<br />

to the core objectives of the business. However, they assisted with the<br />

building up the capital needed to grow and develop the business.<br />

Please give examples of the work you do for clients in the mining sector.<br />

• Mining services: crushing and screening, drilling and tunnelling,<br />

materials and handling, ventilation, underground marking and painting<br />

• Construction services: construction, refurbishments, upgrading,<br />

extensions, maintenance of mining infrastructure and buildings<br />

• Logistics and plant hire equipment: earthmoving, demolishers, TLB,<br />

excavators, tipper truck.<br />

Your KH group has a lot of variety: did it start with many companies<br />

or did you start with just one thing and then it grew?<br />

I started small in 2019. After establishing Kgotlaetsile Holdings (Pty)<br />

Ltd I went on to register the mining, civil, IT and telecommunications<br />

subsidiaries. This was because of the interlinking nature of the business.<br />

Due to accreditation and professional affiliation requirements, it was<br />

necessary to dismantle the companies into sector-specific units.<br />

Is the chamber work rewarding?<br />

It is indeed rewarding as we have recorded a significant increase<br />

in the number of women-owned businesses. A good deal of<br />

development is being done to ensure work-readiness and, most<br />

importantly, to ensure that the fiscal set-aside for women-owned<br />

businesses of all colours in procurement budgets is achieved.<br />

More women are venturing into engineering, mining, agriculture,<br />

manufacturing and technology. Our members are happy and have<br />

enjoyed and appreciated the benefits that the chamber has brought<br />

into their lives.<br />

What are important issues for you that lie ahead?<br />

Government is working on inclusive procurement but more work<br />

needs to be done to support small business and take down barriers<br />

which are preventing them from competing in various sectors, both<br />

in the public and private sectors. The best way to do this – at the<br />

same time as growing the economy and creating jobs – is through<br />

partnerships with established companies and investors.<br />

Why did you want to start a business chamber?<br />

It has proven to be very difficult for a typical woman to be afforded an<br />

opportunity to do business with the mines due to gender barriers. It<br />

became clear that most women in business were experiencing similar<br />

problems so in 2020 I mobilised like-minded women to join me in this<br />

cause. I approached five women from different business sectors who<br />

agreed to establish the Chamber of Commerce for Women in Business<br />

(CCWB) and drive the vision to create generational wealth for those<br />

who will come after us.<br />

What does the chamber offer members?<br />

We currently have 618 registered women in business across all<br />

economic sectors. These members gain access to fruitful and powerful<br />

networking sessions, SMME training and assistance with mandatory<br />

The CEO of Impala Rustenburg Operations, Mark Munroe,<br />

with Sina at the signing of the MoU.


SACCI MEMBER PROFILE<br />

The boardroom experts<br />

Directors Association is an independent professional<br />

body that develops, equips and places directors<br />

on various boards across the country.<br />

Chairperson Munya Divera<br />

As a professional body,<br />

our mandate is to<br />

continuously develop<br />

our members in all<br />

things corporate<br />

governance while concurrently<br />

creating opportunities for our<br />

members through networking,<br />

professional development, lobbying<br />

and board placement.<br />

Vision<br />

Directors Association’s vision is<br />

to chart a new identity for the<br />

boardroom that encompasses<br />

diversity, inclusion, competence<br />

and ethical conduct.<br />

Membership<br />

Directors Association is a member-driven organisation. All our<br />

members are active board members who sit and serve on corporate<br />

boards, NGO and SMME boards, university councils, state and<br />

municipal company boards, trusts, body corporates and all other<br />

types of organisational boards.<br />

Membership Criteria<br />

Any person who is a member of a board/council or any other<br />

governing structure may apply for membership to Directors<br />

Association. Any person that desires to be a member must be trained<br />

in corporate governance to qualify for membership.<br />

Professional Director Development<br />

A key objective of Directors Association is to develop competent and<br />

ethical directors. To achieve this objective, the association has seven<br />

Professional Development Programmes. Each programme is open to<br />

qualifying candidates.<br />

The seven Professional Development Programmes:<br />

• Professional Director, PD (SA): Foundational Governance Programme<br />

• Qualified Director, QD (SA): Stock Market Company Director Programme<br />

• Certified Chair, CC (SA): Expert Chair Programme<br />

• Certified Executive Director, CED (SA): Executive Director Programme<br />

• Certified Company Secretary, CCS: Company Secretarial Programme<br />

• Professional Public Servant, PPS: Public Servant Programme<br />

• Certified International Director, CID: International Director Programme<br />

A discount of 50% for any of the Professional Development Programmes<br />

shall be given to anyone who has the code: Directors@Association2023.<br />

Diversity<br />

Diversity in the boardroom is a key objective of Directors Association and<br />

through a campaign called The BoardRoom Initiative, Directors Association<br />

advocates for board diversity. Board diversity does not only speak to race<br />

and gender but diversity of skill and expertise. It is for this reason that<br />

Directors Association has created a database of board-ready candidates<br />

who are competent enough to serve on boards.<br />

Madam Chair<br />

Increasing the representation of women on boards. There is a general lack<br />

of women on boards across the globe. To address the lack of women on<br />

boards, Directors Association has an initiative called Madam Chair. Madam<br />

Chair’s mandate is to increase the percentage of women on boards through<br />

advocacy, development and placement opportunities.<br />

Governance services<br />

Directors Association provides a variety of other governance services:<br />

• Board setup<br />

• Director placements<br />

• Governance audits<br />

• Governance advisory<br />

• Policy advisory<br />

• Company secretarial services<br />

• Board management software<br />

Contact details<br />

Directors Association<br />

Physical address: The Forum, 2 Maude Street, Sandton Central<br />

Tel: +27 10 541 0693 | + 27 63 642 8244<br />

Email: info@directorsassociation.co.za<br />

Website: www.directorsassociation.co.za


SACCI MEMBER PROFILE<br />

Unleashing the power of SME finance<br />

teams: a revolutionary approach by CIBA<br />

Kickstarting accounting careers.<br />

In today's global economy, SMEs are critical drivers of economic<br />

growth, innovation and job creation. The success of these<br />

businesses largely depends on the expertise of their finance<br />

teams. CIBA has taken on the challenge of transforming the<br />

operations of finance teams in SMEs, offering world-class<br />

designations and unmatched support.<br />

The Challenge: Navigating the complex economic landscape<br />

SMEs face unique challenges in navigating the complex economic<br />

landscape. To thrive, their finance teams require specialised skills and<br />

knowledge. CIBA offers designations tailored to every level, role and<br />

responsibility within the finance department, enabling each team<br />

member to excel and contribute to the growth of their organisation.<br />

CIBA: A rich history and global presence<br />

CIBA is a professional accountancy organisation with a rich history<br />

and a global presence. With over 13 000 members and associates<br />

worldwide, CIBA has offices in France, Italy, Germany, Spain, Portugal,<br />

Morocco, Tunisia, West Africa, Mexico and Namibia. This extensive<br />

network provides finance professionals with access to a vast array of<br />

insights, best practices and resources.<br />

The Solution: CIBA's designations – empowering finance teams<br />

CIBA's designations cover a wide range of finance roles, from<br />

bookkeepers to CFOs. These designations empower SME finance<br />

teams to navigate the complex economic landscape, drive business<br />

growth, and contribute to overall economic development.<br />

The CIBA advantage: Global network, local impact<br />

Beyond designations, CIBA is committed to supporting SMEs. As an<br />

active member of the SACCI board, CIBA demonstrates its dedication<br />

to the success of SMEs. The global network of finance professionals<br />

and industry experts provides SMEs with valuable insights, best<br />

practices and resources to support their financial success.<br />

CIBA's unique approach to professional development is based on<br />

a comprehensive formula: Qualifications + Experience + Assessments<br />

= Designations + CPD = Specialist Licences. This formula includes<br />

academic qualifications, practical experience, rigorous assessments,<br />

prestigious designations, continuous professional development<br />

and specialist licences – all working together to create a pathway<br />

for finance professionals to excel in their roles and contribute to the<br />

success of SMEs.<br />

Nicolaas van Wyk, CIBA CEO<br />

The power of story: CIBA's impact on SME finance departments<br />

By empowering finance teams with targeted designations and support,<br />

CIBA is transforming the way SMEs operate in the complex economic<br />

landscape.<br />

Join the CIBA revolution today and be part of the story that redefines<br />

the role of finance teams in SMEs.<br />

www.saiba.org.za<br />

www.opportunityonline.co.za | 13


WATER DELIVERY<br />

The model for delivering<br />

water and sanitation<br />

must entirely be revised<br />

Rand Water CE Sipho Mosai explains that adding more water to the system will<br />

not be enough to future-proof it, new methods and ways of thinking are required.<br />

in several suburbs for weeks, with high-lying areas worst<br />

hit because of rolling blackouts that affect the pumping<br />

of water, major infrastructural backlogs and increased<br />

demand because of hot temperatures. Notably, water<br />

service is mostly dependent on infrastructure availability<br />

and a perfect equilibrium between water demand and<br />

the system’s capacity to meet both average and peak<br />

demands.<br />

There is an urgent need to put water higher on the<br />

country’s agenda. Various water problems are escalating<br />

at a rapid rate. The country is water scarce because of its<br />

arid to semi-arid climate and below-average annual rainfall<br />

of 465mm compared with the global annual average of<br />

860mm. It is ranked the 40th-driest country in the world.<br />

Secondly, the management of water consumption has<br />

been poor. South Africa is a water-scarce country, yet the<br />

average domestic water use is estimated at 237 litres per<br />

person per day, 64 litres higher than the international<br />

benchmark of 173 litres per person per day.<br />

Rand Water Chief Executive, Sipho Mosai<br />

Water has become one of the foremost modern-day challenges<br />

in this early part of the third millennium. This is because the<br />

era of free drinking water in unlimited quantity is over. During<br />

recent decades, a combination of human demographics and<br />

human activity has in many global regions transformed water<br />

from an abundant element to a scarce resource.<br />

The water shortages that have affected thousands of people in Gauteng<br />

are a “perfect storm” that is developing into a hurricane. Taps have run dry<br />

System constraints<br />

In the entire value chain, there is so much that the system<br />

or infrastructure can provide. Future water requirements<br />

by municipalities, industry and other water consumers will<br />

affect the current and future demand for water. Statistics<br />

South Africa’s growth estimates further bolster this figure.<br />

In turn, the future needs to dictate the requirements for<br />

infrastructure upgrades and refurbishments upstream and<br />

midstream of the value.<br />

The bulk water infrastructure midstream within the<br />

value chain is designed for average water consumption<br />

and peak water demands of about 35 000 megalitres<br />

a week. What does this mean? If water demand is of<br />

typical consumption (4 400 megalitres in 2021/22), then<br />

the system can provide water with relative ease. Hence,<br />

in most instances, every household receives water<br />

without exception. If peak water usage exceeds Rand<br />

Water’s purifying output, municipal water is drawn from<br />

14 | www.opportunityonline.co.za


WATER DELIVERY<br />

Sedimentation tanks at Zuikerbosch Purification Plant<br />

reservoirs. The reservoirs at municipal level dry out quickly as a<br />

result of excessive use. Because Rand Water continues to pump at<br />

optimum capacity, water will continue to be delivered to low-lying<br />

areas regardless. The irregular water supply in the high-lying areas<br />

is aggravated by intermittent power outages and loadshedding.<br />

Pumping and reservoir filling are impossible without a steady<br />

supply of electricity. In the event that there is no electricity to<br />

operate pumps and water usage rises to the point that reservoirs<br />

are depleted, high-lying areas will be left without water.<br />

The final segment of value chain (downstream) lies under the<br />

purview of municipalities known as water services authority.<br />

Municipalities draw water from Rand Water’s reservoirs and<br />

distribute it to individual residences and various other customers<br />

through a system of their own pipes and reservoirs.<br />

Non-revenue water, notably physical water losses because of<br />

ageing infrastructure, is the greatest impediment that characterises<br />

the value chain, particularly in the downstream. Municipal physical<br />

water losses range between 20% and 30% (1 000 to 1 500 million<br />

litres of water a day when Rand Water is pumping at maximum<br />

capacity). In a water-scarce nation that imports the majority of its<br />

raw water, this quantity of water is enormous. With the purpose of<br />

addressing the distribution of water, local governments should make<br />

significant investments. Sadly, the sector does not spend enough<br />

on water conservation and demand-management methods to turn<br />

the situation around as quickly as possible. The expansion of cities<br />

and towns necessitates substantial future investments to not only<br />

reduce water loss but also free up additional water to meet the<br />

water needs of future urban growth.<br />

Consumer behaviour<br />

As water consumers, we must conserve water and change our<br />

behaviour to reflect our situation. We should resist the temptation to<br />

fill swimming pools and irrigate our lawns with potable water during<br />

periods of extreme heat. During times of high levels of loadshedding<br />

and heat waves, avoiding these will considerably improve water<br />

supply for all. Secondly, local municipalities must prioritise nonrevenue<br />

water. This will also aid in reducing wastage by paying for<br />

water that is not used. To maintain water-supply sustainability and<br />

reliability, infrastructure upgrades and refurbishments must receive<br />

sufficient funding.<br />

By the end of 2023, Rand Water will have added 600-million litres<br />

of water per day to the system. In the next five years, Rand Water<br />

will invest R30-billion to expand its network of pipes and reservoirs.<br />

As part of this plan, Rand Water inaugurated a 210-million-litre<br />

storage reservoir in February.<br />

Lastly, the water and sanitation delivery model must entirely be<br />

revised in order to provide long-term and sustainable water services.<br />

Revenue generated from paying customers of water and sanitation<br />

must be ring-fenced for infrastructure operations, maintenance,<br />

renovation and augmentation. I believe that the current structural<br />

arrangement should be revised and be replaced by new utilities<br />

that will operate the full value chain from abstraction to reticulation.<br />

Governance and funding mechanism can be developed to ensure<br />

that these utilities are successful and sustainable.<br />

The projects were initiated in July 2022, with the total estimated budget of R1,4 billion, and the estimated comple<br />

Responding to Climate Change<br />

Climate change and extreme weather conditions present a challenge to the sustainability of water supply and w<br />

As a supplier of bulk water to millions of South Africans, Rand Water is threatened by these environmental cond<br />

Water regards climate change as one of the greatest threats to its ability to provide sustainable, uninterrupted<br />

potable water at an affordable cost to its customers. In that light, Rand Water has committed to mitigating its<br />

to the emission of greenhouse gases by reducing its carbon footprint and ensuring the effective execution o<br />

change strategy. The organisation will adapt to measures of the impact of climate change by implementing p<br />

that explore new and alternative methods to ensure business continuity in the event of raw water scarcity.<br />

continues to replace trees or plants removed on sites be it from the installation and maintenance of infrastruct<br />

or alien invasive<br />

Inlet<br />

plant<br />

pipe<br />

removal<br />

to flocculators<br />

with indigenous<br />

at Zuikerbosch<br />

plants.


UTILITY FINANCES<br />

Non-payment for water services<br />

is reaching a crisis point<br />

Rand Water is growing and investing in infrastructure but its financial<br />

viability is threatened by cumulative municipal debt of R5.8-billion.<br />

The Rand Water Board is a significant institution in the water<br />

sector and the country’s economy. It is a strategic institution<br />

that is investing and building formidable infrastructure for<br />

water provision to Africa’s largest regional economy.<br />

The entity played a significant historical role in helping<br />

to make Johannesburg and Gauteng the formidable economic hub<br />

that it has become, supplying the early gold mining companies with<br />

the water and sound infrastructure they needed to thrive in their time.<br />

The entity has grown and has adjusted from one decade to another,<br />

the result of strong leadership and capable management supported<br />

by technical professionals that has been nurtured and harnessed over<br />

many years. It is also important to note that domestic and commercial<br />

water users have always been in a position to help sustain the running<br />

of this great South African entity.<br />

As a result, Rand Water in recent years has been contributing<br />

greatly to finding and sharing water and infrastructure solutions on<br />

the African continent, as an equal partner and strategic contributor<br />

to the knowledge economy.<br />

The organisation’s performance indicates that it is currently<br />

on solid ground. Over the last three years, Rand Water Board<br />

revenue has been growing modestly. The entity also continues<br />

to invest in infrastructure expansion and in supplying drinkable<br />

water quality to its customers.<br />

A challenging environment<br />

There are challenges in the business environment. These<br />

challenges include:<br />

• non-payment by users resulting in a huge debt book<br />

• failure of municipalities in Gauteng to pay for water delivery<br />

• slow payments<br />

• the country’s economic slowdown due to global economic<br />

conditions<br />

• inability of customers to pay for water services to municipalities.<br />

Some of the economic impact outlined above is as a result of<br />

job losses due to the economic impact of Covid-19.<br />

16 | www.opportunityonline.co.za


UTILITY FINANCES<br />

I N T E G R A T E D<br />

Despite these issues, Rand Water has shown resilience<br />

in its performance, posting excellent results. The criticaloperational<br />

ratios demonstrate REPORT that the organisation is doing<br />

ANNUAL<br />

well. Revenue is growing year-on-year. In FY2022/23, the entity<br />

performed above set targets, income grew by R17-million,<br />

2022<br />

which represented 51% growth.<br />

Net income was up by R576-million compared to the previous<br />

financial year. Irregular expenditure was reduced from R110-million<br />

to R3.35-million. The Rand Water Board received an unqualified<br />

audit opinion for the year, commendable for an organisation of<br />

this kind. Maintaining a clean audit and good credit rating is good<br />

for fundraising and in the bond market.<br />

On project implementation, the Rand Water Board has<br />

performed well. Having set itself a target of achieving 95%<br />

project completion by the end of the financial year, the target<br />

was exceeded with 115.8%.<br />

Upward trend<br />

This upward trend in achievement is also seen with other targets<br />

such as employment creation and the black empowerment<br />

programme of the organisation. The repair and maintenance of<br />

assets has also been attended to – the target was 95%, the entity<br />

achieved 115%. This is critical as an assurance to the investors and<br />

the citizens of the province and South Africa that the water board<br />

does look after its assets and the longevity of the investment and<br />

assurance of supply is guaranteed. It is important to remember<br />

that the policy of national government is to keep this economy<br />

at 99% assurance of water supply. Rand Water is one of the strong<br />

water-sector entities that is giving this government and Africa’s<br />

biggest economic hub that benefit and a strategic guarantee.<br />

Also, the entity has assured the citizens that there will be no Day<br />

Zero in Gauteng province.<br />

Additionally, Rand Water is in a position to continuously<br />

invest in the building of infrastructure. According to its latest<br />

annual report, Rand Water has promised to invest R25-billion.<br />

This is good news for any investor who wants to build a<br />

business in Gauteng.<br />

Threats to the good story<br />

The Rand Water Board has a good story to tell, but this may be<br />

threatened, not as a result of how the entity operates or drives its<br />

business but due to the externalities and operational environment<br />

beyond the water board’s control.<br />

For instance, economic forces that are currently at play can<br />

present risks. All water boards have municipalities as their main<br />

customers. Fully 80% of Rand Water’s revenue comes from<br />

Gauteng municipalities as they are all supplied by the body. These<br />

municipalities currently owe the water board R5.8-billion.<br />

This has an adverse impact on the finances of the entity. This<br />

could have assisted in alleviating the debt burden on projects.<br />

Measures must be put in place to collect outstanding debt.<br />

If this is achieved, Rand Water can improve and expand its water<br />

infrastructure. If this is not diligently managed, it may pose a huge<br />

risk to the body’s liquidity and cause the entity to fail in managing<br />

to service its loans. This could cause a mismatch of assets and<br />

liabilities resulting in a bad credit rating.<br />

The global pandemic had a huge negative economic impact<br />

and Rand water Board was not spared. The closure of companies,<br />

production reduction and retrenchments caused cash flows to stall<br />

and this had a ripple impact on downstream clients.<br />

In Gauteng, the inability of big municipalities to pay the board on<br />

time was noted and this phenomenon has continued despite the<br />

reopening of the economy following the end of the pandemic. For<br />

instance, Ekurhuleni paying in 59 days with consumption growth of 3%<br />

year-on-year. Tshwane payment in 56 days, its consumption growing by<br />

58%. The City of Johannesburg Municipality must be commended for<br />

honouring their invoices on time. Johannesburg must find R61-billion<br />

to refurbish its collapsing infrastructure to manage its water losses<br />

from old infrastructure. Emfuleni payment days is now at 237, down<br />

from 3 365 days and consumption is growing by 14% year on year. The<br />

overdue amount to Rand Water is R676-million and arrangements have<br />

been put in place to settle this debt.<br />

Infrastructure expenditure continues<br />

Despite these challenges, the Rand Water Board is still able to<br />

spend R3-billion per annum to maintain infrastructure and meet its<br />

obligations. It is anticipated that in the next five years the water board<br />

is likely spend multiple billions on infrastructure investment. This is<br />

commendable in that the infrastructure rollout is keeping pace with<br />

the province’s demands due to rapid population growth, economic<br />

development and other major activities.<br />

Rand Water’s strategy aims to ensure that it stays on this path to<br />

match the demand of its market. However, the time has come to<br />

start to proactively find approaches that protect it from elements<br />

that are detrimental to its operations. Gauteng and the country<br />

need this entity to keep working continuously to maintain its<br />

infrastructure and delivery of water to its consumers.<br />

The water board aims to have a positive impact on the business<br />

environment in which it operates. It must continue to strengthen<br />

its work with the municipalities, including joint activities which will<br />

encourage a payment culture for water and other services.<br />

Rand Water is a catalyst for economic growth. It must succeed.<br />

www.opportunityonline.co.za | 17


WATER DELIVERY<br />

What municipalities can do to promote<br />

efficient water delivery<br />

If municipalities can reduce water loss, water-demand volumes will return to levels where<br />

Rand Water’s purification systems can deliver. Rand Water also identifies here the major<br />

supply interruption factors hampering effective water purification and primary pumping.<br />

demand above the treatment capacity of Rand Water treatment then<br />

problems arise.<br />

National water consumption per capita per day is 233 litres-per-personper-day<br />

against an international standard of 173 litres. Some municipalities<br />

have water losses up to 40%. This is against the figure of just 6.5% for Rand<br />

Water. Reduction in water losses will reduce the water demand volume<br />

which, in turn, will result in the reduction in per capita consumption.<br />

Inlet pipe to flocculators at Zuikerbosch Purification Plant<br />

Rand Water has been part of the economic success story of the greater<br />

Johannesburg area almost from the time that gold was discovered.<br />

Unlike many cities which are located near water, it was gold that<br />

caused the city to be built. The first residents and the industries which<br />

developed in support of the gold-mining industry were a long way<br />

from water.<br />

The nearest water source is the Vaal River and several dams have<br />

been constructed along that water course to supply the large urban<br />

and peri-urban population that has grown up around Johannesburg.<br />

Rand Water has supplied those people – and farmers and other smallscale<br />

water users – reliably for a long time.<br />

The dams along the Integrated Vaal River System (IVRS) to<br />

supplement the Vaal Dam are the Woodstock and Sterkfontein Dams<br />

in KwaZulu-Natal and the Free State provinces, the Grootdraai Dam<br />

in Mpumalanga and the Katse and Mohale Dams in the Kingdom<br />

of Lesotho.<br />

Droughts are frequent feature of the South African climate, some<br />

lasting more than four years. South Africa is the 30th-driest country in<br />

the world. Climate change has added to the challenges faced by water<br />

authorities and so consumers must not be lulled into a false sense of<br />

security when dams are full.<br />

High consumption creates supply bottlenecks<br />

Municipalities can play a role in helping to reduce demand for water,<br />

thus reducing the pressure on water supply.<br />

The Annual Average Daily Demand (AADD) of 4 600Ml/d, is within<br />

the Rand Water treatment capacity of 5 000Ml/d. The AADD is derived<br />

from municipal estimates of annual demand. If consumption increases<br />

Interruption factors<br />

The major supply interruption factors for effective water purification and<br />

primary pumping are as follows:<br />

Absence of alternative power supply: Zuikerbosch is supplied by<br />

Eskom and is protected by an agreement not to be load-shed other than to<br />

save the grid. There are negotiations with Emfuleni for a similar agreement.<br />

Project execution postponements: Rand Water has streamlined<br />

compliance and procurement procedures that have delayed execution<br />

of capital projects, maintenance, procurement of spares and emergencies<br />

such as plant breakdowns.<br />

Old Infrastructure/Plant Capacity: Maximo is used for planned<br />

maintenance, repairs and refurbishments. Capex projects are executed on<br />

a five-year business plan cycle. A 600Ml/d plant will be commissioned early<br />

in 2024 to increase the capacity of the Zuikerbosch plant.<br />

Treating for safety<br />

Treatment of raw water must be done to the highest standards for safety<br />

reasons. Rand Water has two Water Treatment Plants (WTP) that are situated<br />

in Emfuleni Local Municipality (ELM). The plants are the Zuikerbosch Water<br />

Treatment Plant and the Vereeniging Water Treatment Plant (VWTP).<br />

Raw water is abstracted from the upper part of the Vaal River and<br />

pumped to the VWTP for purification. Raw water is also abstracted from<br />

the Vaal Dam and transferred to the ZWTP for purification purposes.<br />

The same process of purification is followed at the two plants.<br />

The raw water is transferred to the ZWTP through a canal. It is then<br />

processed through the screens to catch any visible dirt such as leaves,<br />

tree branches or any other undesirable objects that have the potential<br />

to obstruct the process.<br />

Turbidity is the measure of dirt contamination in water. When water is<br />

received from the Vaal Dam, it can have a turbidity of 60 Nephelometric<br />

Turbidity Unit (NTU), a low figure, or 160 NTU, a very high figure. The higher<br />

turbidity requires the use of more chemicals to ensure that the water is<br />

purified to meet the SANS 241 Standards. Rand Water purifies water to<br />

below 0.5 NTU against the South African National Standards (SANS) of 1<br />

NTU. SANS is the South African Standard for measuring acceptable water<br />

18 | www.opportunityonline.co.za


quality for consumption. The 0.5 NTU is a stricter standard used by the<br />

World Health Organization (WHO). The treatment process consists of seven<br />

stages, namely: coagulation, flocculation, sedimentation, carbonation,<br />

filtration, chlorination and pumping.<br />

Coagulation is the mixing of water with crushed lime to produce liquid<br />

lime. This is done to destroy bacteria and/or algae to stabilise water. The<br />

flocculator mixes water and milk of lime at high energy so that solids form<br />

clusters or flocs. In this process the particles attract each other to form<br />

visible flocs floating on top of the water. The flocculator has a spiral shape<br />

so that it can circulate water first at high energy, gradually slowing down<br />

as the spiral flocculator widens in diameter and the flocs formulated sink<br />

to the floor when entering the sedimentation tank.<br />

Sludge is formed when the sedimentation tank draws the flocs down<br />

to settle at the bottom of the tank. The clean water still on top of the<br />

tank drains through the launders into the flume so that it flows to the<br />

carbonation bay. The bridges on the sedimentation tank drain the sludge<br />

from the bottom of the sedimentation tank which is eventually pumped<br />

to the drying beds in the Panfontein sludge plant. The clean water is then<br />

gravitated through carbonation bays to the Filter House.<br />

At the carbonation bay, carbon dioxide (CO2) is added to water from<br />

the sedimentation tank to reduce pH to 8.6 for safe drinking water. The<br />

next stage from is the filtration process. At the Filter House water is passed<br />

through fine sand in a slow process that can take two hours. The process<br />

of filtration is designed to capture small living organisms. The filter house<br />

is kept dark to prevent the growth of algae. At this stage the turbidity is<br />

at 0.5 NTU or below.<br />

The Chlorine House hosts the next stage. The chlorine cylinders<br />

containing liquid chlorine and gas chlorine at the top of the cylinder are<br />

used for disinfection. This stage is designed to kill germs that may be<br />

invisible and may have escaped the purification process.<br />

Pumping of potable water in the Engine Rooms signals the final<br />

process. Water is pumped to an elevation of 380m to reach Rand Water’s<br />

four booster stations. These are the Eikenhof, Zwartkopjes, Palmiet and<br />

Mapleton Pumping Stations.<br />

The Filter House at Zuikerbosch<br />

Water quality is measured by monitoring water quality determinants.<br />

Over and above the online monitoring system, two-hourly samples are<br />

taken 24 hours a day to monitor the accuracy of the online instruments<br />

calibration. Each Rand Water site has its own site laboratories and is in<br />

charge of the online monitoring system. The sites monitor mainly four<br />

elements, that is: Turbidly, Chlorine, Calcium Carbonate Precipitation<br />

Potential (CCPP) and pH.<br />

A laboratory within the Scientific Services Division, which is independent<br />

from Operations, monitors various water quality determinants to cross<br />

check data from Operations and monitor water quality at the tap.<br />

This demanding purification processes is conducted to make sure<br />

that Rand Water supplies its customers with drinking water of worldclass<br />

quality.<br />

Conclusion<br />

Rand Water does not receive any subsidy from national government.<br />

Funding is derived purely by the water it sells. The client base is primarily<br />

municipalities and it is at that level that water losses can be reduced.<br />

Through sensible measures, cooperation and awareness, a situation can<br />

be reached where reasonable water tariffs are charged across the board.<br />

This will create satisfied customers and consumers and contribute to water<br />

security for South Africa.<br />

ABOUT RAND WATER<br />

Africa’s biggest bulk water utility meets and exceeds exacting standards. Rand Water provides bulk potable water to more than 11-million people in the South African provinces of<br />

Gauteng, Mpumalanga, the Free State and North West – an area that stretches over 18 000km2. Rand Water customers include metropolitan municipalities, local municipalities, mines<br />

and large industries. Rand Water has a global reputation for providing water of high quality that ranks among the best in the world and consistently meets and exceeded national<br />

standards and international guidelines on water quality. The strategic objectives of Rand Water include achieving growth, operational integrity and a culture of high-performance.<br />

Rand Water uses best-fit technology and positively engages with its stakeholder base to maintain financial health and sustainability.<br />

Rand Water contacts:<br />

Head Office<br />

Physical address: 522 Impala Road, Glenvista 2058<br />

Postal address: PO Box 1127, Johannesburg 2000, South Africa<br />

Tel: +27 11 682 0911 | Customer Service Centre: 0860 10 10 60<br />

Email: customerservice@randwater.co.za | Website: www.randwater.co.za<br />

I N T E G R A T E D<br />

ANNUAL REPORT<br />

www.opportunityonline.co.za | 19


SUSTAINABLE FASHION<br />

Closing the<br />

fashion loop<br />

Caroline Nelson, Country Manager, CEO, H&M Southern Africa<br />

20 | www.opportunityonline.co.za


SUSTAINABLE FASHION<br />

Caroline Nelson, Country Manager, CEO, H&M Southern Africa, reflects on the successes<br />

of the Sustainable Production Africa Summit 2022. She is enthused about how well<br />

the participants, which included retailers, farmers, designers, recyclers and charities,<br />

have taken up the challenge to take South African fashion into a new, sustainable era.<br />

Before you hosted the Sustainable Production Africa Summit<br />

2022, were other people and organisations looking into this issue?<br />

There are people working towards having more sustainable materials<br />

in their clothing so it’s not that it didn’t exist. However, at the same<br />

time, the rebuilding of the textile industry was not necessarily on<br />

the trajectory to be sustainable. It was more to rebuild the industry.<br />

We were asking, in order for us to have a global advantage, why not<br />

build the future of production as opposed to trying to rebuild the<br />

past method of production? That wasn’t in the conversations I was<br />

having; that wasn’t necessarily in the thought processes.<br />

Are initiatives joined up or coordinated?<br />

Each local retailer is doing some really good things around sustainable<br />

production, but maybe not as part of a bigger-picture strategy. That<br />

is what we found, at least when we started.<br />

So this is a case of trying to build back better?<br />

Yes, exactly.<br />

Is this something that H&M is doing globally?<br />

The nice thing is that H&M has been on this sustainability journey<br />

for over 20 years now. This is a long process and as a company we’ve<br />

made some fantastic strides.<br />

We’ve also made mistakes along the way. Sustainability is one of<br />

those journeys where you are never quite there. You have to keep<br />

evolving through it. The journey has included everything from<br />

the sort of material we use to how we work with the teams in our<br />

production facilities, to how we support communities. So that whole<br />

spectrum of sustainability is really important to us as a company.<br />

That’s where we saw where we could support locally, to help to<br />

educate the industry here. So that we can build the best version<br />

of it in South Africa.<br />

Do you have manufacturing facilities in South Africa?<br />

We don’t currently but we do source a lot of wool from South Africa.<br />

South Africa is our biggest wool-sourcing market globally. We are<br />

working with raw materials from here, but we don’t currently have<br />

any manufacturing facilities.<br />

And mohair?<br />

We did then we didn’t, and now we are sourcing it again from South<br />

Africa. There’s been a bit of a journey.<br />

Are you referring to the fact that South Africa’s mohair industry now<br />

subscribes to the Responsible Mohair Standard which has restored<br />

trust in the buying public?<br />

Exactly. And that was a response to feedback, which I think is<br />

really good.<br />

What are the major requirements for collaboration to work across<br />

various sectors?<br />

The whole point of our conference was to bring the industry together.<br />

We had the full spectrum there. It was from farmer to fashion. It was<br />

a really great thing for us to be able to make happen. And what’s<br />

so interesting in the retail landscape in South Africa is people are<br />

competitive. Just like any other industry, people compete against<br />

each other.<br />

However, the one area that everyone’s willing to collaborate on is<br />

around sustainability and doing things right. We have all figured out<br />

that we’re in an industry that has a lot of work to be done. Everyone’s<br />

willing to come to the table and talk about these things.<br />

For us at H&M, we are almost like a neutral party because when<br />

we speak to local retailers, they know that we’re the best in our field<br />

at this. They are very willing to listen and learn, but also work together<br />

in order for us to move forward.<br />

What’s needed in order to do that is someone has to ignite and<br />

start the conversation, drive it and pull people together. And then for<br />

us to continue to do that. It’s not just a conference where we share<br />

information, but we actually do something with it. For H&M it’s being<br />

able to give.<br />

The education and help to support local retailers through<br />

this has been amazing. People are really willing to learn because<br />

they want to make the changes and they want South Africa to be<br />

successful at this.<br />

They are willing to collaborate, which is amazing. That journey has<br />

to continue and it needs to be pushed. One of the best things about<br />

the conference is that since we’ve had it, local retailers are knocking<br />

on the door to say yes, let’s work together. Let’s do this together. Let’s<br />

share information. Please continue to share with us. How are we going<br />

to do things better for the future? Let’s have a coffee and talk about<br />

changing the world. It’s been really refreshing. There are very few<br />

industries where we can bring people together like that and have<br />

them being excited about working collaboratively.<br />

We started a journey that we’re very excited to have been part of and<br />

we want to continue to help.<br />

www.opportunityonline.co.za | 21


SUSTAINABLE FASHION<br />

That attitude is presumably partly based on having a neardeath<br />

experience as an industry a few years ago and realising<br />

that maybe sustainability also entails efficiencies across the<br />

value chain?<br />

I agree 100%. Efficiencies are vital. It might change people’s mindset,<br />

too. We struggle with our unemployment rates in South Africa. To<br />

build an industry that can help to support in a broader way, like<br />

lowering the levels of unemployment, to be able to build an industry<br />

around that and educate people over the next few years is fantastic.<br />

But doing it in the right way is even better and that’s I think to your<br />

point, about the kind of motivation that people have right now.<br />

Do you have a sense of where South Africa is now as a sustainable<br />

clothing producer? Are we at 20% or 80%?<br />

I won’t give you a percentage, but it’s quite low. However, when you<br />

look at the work that Woolworths and The Foschini Group (TFG) are<br />

doing right now… they are your biggest market players in South<br />

Africa and they have a plan. This is part of their ambition. This isn’t<br />

smoke and mirrors. That percentage will rise quite high. And should<br />

everyone follow through on the commitments they’re making – and<br />

quite quickly – then it could be very exciting.<br />

Do you intend engaging with government?<br />

We do have discussions regularly with the government to share our<br />

point of view. We did invite the Department of Trade, Industry and<br />

Competition (dtic) to the conference.<br />

The dtic has been producing masterplans for promoting local<br />

industries, has it not?<br />

The masterplan was one of the things that helped to propel us to<br />

getting to this point. As a fashion company there, there are pillars<br />

for us to achieve.<br />

It’s fashion and quality at the best price in a sustainable way.<br />

That’s what we work towards. When I first started looking into<br />

the masterplan and knowing that local retailers are mandated to<br />

produce at least 25%, it was very interesting.<br />

You can do price really well here, but then maybe it doesn’t<br />

come with the quality or you can do quality really well but it doesn’t<br />

come with the price. Or you can do fashion really well. But then<br />

it’s very expensive. The one thing that just wasn’t available in the<br />

existing production model was doing it in a sustainable way. In<br />

order for to meet all of those pillars, the industry has to change<br />

and grow and be better.<br />

The masterplan is a great catalyst to build the industry, but it<br />

needs to be built on the fashion industry of the future and not<br />

how it was in the ’90s. Let’s build South Africa to be the best and<br />

not have to come back in 10 years and do what we’re trying to do<br />

everywhere else in the world.<br />

Why is data important?<br />

Everything in the world is working with data right now. It helps to<br />

establish baselines, benchmarks, measurements. If we’re moving<br />

forward and wanting to reduce your carbon footprint as much as<br />

22 | www.opportunityonline.co.za


Bringing the land to life again<br />

H&M is working with BKB on a land project in the Eastern Cape. H&M<br />

Group and BKB Ltd are partnering to implement the Biodiversity<br />

Restoration and Regenerative Land Management project. BKB Ltd<br />

is a leading supplier of RWS wool (Responsible Wool Standard). H&M<br />

Group sources the vast majority of its wool for its products from<br />

RWS-certified farms in South Africa. The joint project aims to not<br />

only build on the existing standards for sourcing wool responsibly,<br />

but to reach higher social and animal welfare standards.<br />

More than 80 farmers are involved in the project, which looks to<br />

protect and encourage biodiversity on the land and to help farmers<br />

regenerate the land in a sustainable way.<br />

Oggie Pringle from Bedford says about the partnership: “Such<br />

partnerships between brands and farmers are important because<br />

they recognise the crucial role that farmers play in shaping the future<br />

of our planet and together, we can make a meaningful impact on<br />

the environment and set practical goals to combat climate change.”<br />

H&M is also working with the WWF on the Regenerative Wool<br />

project in the Drakensberg region of the Eastern Cape.<br />

The Biodiversity Restoration and Regenerative Land Management project is a<br />

joint undertaking in the Eastern Cape between H&M and wool-producer BKB.<br />

Credit: Mark Sampson<br />

possible, you need to be able to measure that along the way. Data<br />

also helps us realise how much we need to produce so that you’re<br />

not overproducing and then having garments in the world that could<br />

potentially end up in landfill. The more accurate your production data<br />

is, the smaller footprint it will have.<br />

Data can also help us reward customers for good behaviour.<br />

It helps us use the right materials and fabrics for the future. We<br />

definitely need the data in order to be sustainable.<br />

Please tell us about your partnerships with various South<br />

African firms.<br />

We have a very cool programme with “Clothes to Good”, a textile recycling<br />

and disability empowerment organisation. In our stores we gather any<br />

old clothes, garments, shoes, blankets, it doesn’t matter. Bring them in.<br />

We educate women who have children with disabilities in our<br />

more underprivileged communities on how to be businesswomen.<br />

When you have children with disabilities, it can be very difficult<br />

to leave your house. It’s hard to generate income. Anything that’s<br />

in really good shape and can be resold, these women can then<br />

buy from us and then they start their own business. We teach<br />

about financial literacy, salesmanship and all of the elements you<br />

would need to run a business. And then they resell within their<br />

communities. Then anything that’s not sold we turn it into toys<br />

for children with disabilities.<br />

I got to spend a day making toys myself and it was one of the<br />

most inspirational things ever. The teams making the toys also<br />

Jesse Naidoo and Tammy<br />

Greyling, the Clothes to<br />

Good team.


SUSTAINABLE FASHION<br />

_________________<br />

So that whole spectrum of<br />

sustainability is really important<br />

to us as a company.<br />

________________<br />

have disabilities themselves so this process creates employment.<br />

Whatever’s left after toys have been made is recycled and goes to<br />

the automotive industry or mattress industry for reuse and repurpose.<br />

It’s a full closing the loop project and it’s a very exciting one.<br />

And what about designers?<br />

What we’re trying to do is uplift local business and fashion-industry<br />

designers or print artists to give them a platform to build their brand.<br />

With local company Neimil, we had them design a home collection<br />

for us. It was all made here locally and it was all made by hand. We<br />

sold it in some select stores and then we also helped with their<br />

branding. It was in our windows and we did a media campaign and<br />

gave Keneilwe Mothoa and Lubabalo Mxalisa a platform to grow as<br />

a small, locally-owned business, which is our goal.<br />

As part of your enterprise development programme?<br />

Exactly. Every year we pick a couple of collaborations and we help<br />

to grow people.<br />

Scenes from<br />

Sustainable Production:<br />

Africa Summit 2022<br />

Would you regard the Summit as a success?<br />

It was. It will be a real success if people take action on what we<br />

discussed. If there is follow-through. It was a great day and we met<br />

lots of great people. Good information was shared and we helped to<br />

educate people.<br />

We hit the agenda on every single thing that we wanted to do.<br />

Now we have to do something about it and the actions that come<br />

out of it will be the measure of success.<br />

And I am very excited that we’ve had so many people who<br />

attended reach out and commit to making some sort of change.<br />

We have to follow up with it and continue and repeat and get<br />

back in the room together and do some things with it. That will be<br />

the true measure. But in terms of how it was received, it was very<br />

well received by the retail and beyond industry and we’re really<br />

proud of it.<br />

What are H&M’s ambitions in South Africa and Southern Africa?<br />

We want to be in a lot more places and we have a lot of work to do.<br />

We have a lot of growth on the agenda. We see a ton of potential both<br />

in Southern Africa and in South Africa.<br />

We have massive ambitions for growth and we’re going to<br />

diversify our portfolio within South Africa and in the region over<br />

the next couple of years. We love doing business here. We are going<br />

to continue to do it and do more of it.<br />

24 | www.opportunityonline.co.za


Access Bank South Africa<br />

wins major award<br />

Capital Finance International (CFI) has named Access Bank South<br />

Africa for the Best Business Banking Solutions in South Africa for 2022.<br />

BUSINESS BANKING SOLUTIONS<br />

In January 2023, the London head office of respected financial<br />

print and online journal Capital Finance International (CFI)<br />

released the results of its awards for 2022.<br />

Access Bank South Africa was named for the Best Business<br />

Banking Solutions in South Africa.<br />

Access Bank SA CEO Mrs Sugendhree Reddy said she is delighted<br />

with the news, noting CFI’s standing as a well-regarded print<br />

journal and online resource in the business, economics and<br />

finance sectors.<br />

“This recognition of our dedication, determination and<br />

commitment to ensuring that our customers receive impeccable<br />

service and products tailored to meet their needs shows the<br />

progress we continue to make towards becoming the world’s<br />

most respected African Bank,” she said.<br />

Access Bank SA joined the Access Bank Group in mid-2021, following<br />

a rebranding and conversion to include retail and corporate banking<br />

together with the business banking division.<br />

“Access Bank South Africa forms part of a financial services conglomerate<br />

with a well-established international presence, including subsidiaries in<br />

15 African countries including the UK and the UAE, with representative<br />

offices in China, India and Lebanon,” Reddy notes. A Paris office will<br />

open in May 2023. A commitment to providing good value and excellent<br />

service in delivering personal, corporate, business and alliance banking<br />

solutions has made Access Bank SA a stand-out financial services<br />

operation in a highly competitive market.<br />

Says Reddy: “We are excited by the award from CFI and will use it<br />

as motivation to continue to raise our standards in every area that<br />

we provide services, from everyday banking such as transactional<br />

accounts, deposits, to secured and unsecured loans, trade finance<br />

(import and export solutions) as well as Forex. We serve retail, business<br />

and corporate customers.<br />

“We pursue a relationship-centred banking model that focusses on<br />

people rather than products. Business clients benefit from a dedicated<br />

relationship manager who make on-premises visits to ensure the bank<br />

has a full understanding of a company’s needs.<br />

“Customer satisfaction is a primary pillar of Access Bank SA, and our<br />

reputation for dependability and solutions has become key to the<br />

customer-centric model of the business.”<br />

It is clear that there will be no resting on laurels for Access Bank South<br />

Africa. “This is an exceptional way to start our new year,” says Reddy, “and<br />

will provide a springboard for our teams to continue to match and exceed<br />

customer expectations, while focusing on solutions-driven services that<br />

make Access Bank a financial banking operation quickly becoming a<br />

first-choice among South Africans.”<br />

ABOUT ACCESS BANK<br />

Access Bank Plc. is a leading full-service commercial Bank operating through a network of more than 600 branches and service outlets, spanning three continents, 18 countries and more<br />

than 49-million customers. The Bank employs 28 000 people in its operations in Nigeria and has subsidiaries in East, West and Sub-Saharan Africa and the United Kingdom (with a branch<br />

in Dubai, UAE) and representative offices in China, Lebanon and India.<br />

Listed on the Nigerian Exchange Limited since 1998, it is currently admitted on the National Association of Securities Dealers (NASD). Access Bank is a diversified financial institution which<br />

combines a strong retail-customer franchise and digital platform with deep corporate banking expertise and proven risk management and capital management capabilities. The bank serves<br />

its various markets through four business segments: Retail, Business, Commercial and Corporate. Access Bank has over 900 000 shareholders (including several Nigerian and international<br />

institutional investors) and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last twelve years. Following its merger with Diamond Bank in March 2019,<br />

Access Bank became one of Africa’s largest retail banks by retail customer base. As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business<br />

practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant, helping customers to access more<br />

and achieve their dreams.


Committed to growing the South<br />

African and African economy<br />

Access Bank CEO Sugendhree Reddy reflects on the significant<br />

achievements made in a short time by this award-winning bank.<br />

Congratulations on the award, Best Business Banking Solutions in<br />

South Africa for 2022. Given that Access Bank’s rebranding and SA<br />

launch was in 2021, you must be very proud of the achievement?<br />

It was certainly a proud moment for the team and me. To achieve a<br />

prestigious award in such a short period confirms that we are doing things<br />

right and the market is ready for change in the banking environment.<br />

Do you see Access Bank as building on the various brands which<br />

preceded its South African launch?<br />

Access Bank is different to the past banks. Bank of Athens was a niche<br />

business bank which predominately serviced the Greek community.<br />

Grobank was an agricultural bank and Access Bank is a full-service<br />

retail and wholesale bank servicing all communities. The products and<br />

services are different to the previous two banks, and we are a stronger<br />

bank with a parent who is committed to growing the African economy.<br />

A merger with Diamond Bank in 2019 meant that Access Bank is<br />

now one of Africa’s largest retail banks. What is the scale of the<br />

bank’s operations and what does that enable the bank to do for<br />

customers that a smaller operation would not be able to do?<br />

On the continent we have over 600 branches and serve over 50-million<br />

customers. We have a total staff count of over 20 000 people.<br />

What are your short-term and medium-term goals for Access Bank<br />

in South Africa?<br />

The short-term goal is to win the hearts and minds of banking<br />

consumers, to be known as the most respected African bank who solves<br />

customer problems by co-creating solutions with customers. We want<br />

to aggressively grow our customer base in all areas of the bank.<br />

The medium-term goal is to be the Top Tier 2 bank in South Africa<br />

by profitability, assets and service.<br />

Access Bank CEO, Sugendhree Reddy<br />

Which segments of the bank have been experiencing the best<br />

growth?<br />

We are proud of the significant inroads we made in the Corporate<br />

Banking segment which we launched early in 2022. We already<br />

bank a few listed entities. We are also pleased with our Business and<br />

26 | www.opportunityonline.co.za


BUSINESS BANKING<br />

Commercial Banking segment; we continue to build and grow<br />

this segment.<br />

Our differentiation is that we solve for customer problems, we<br />

don’t just push products.<br />

Is this a reflection of trends in the South African economy?<br />

We are experiencing growth in all sectors. Although the South<br />

African economy is currently strained, there are still opportunities for<br />

the smart entrepreneurs, for example, we see growth in the energy<br />

sector but similarly we also see the agricultural sector showing<br />

strong growth.<br />

Please tell us about Access Bank’s plans for a banking platform<br />

for the SMME sector.<br />

We support the SMME sector through our Womenpreneur Pitch-<br />

A-Ton, an annual competition we run to showcase women in<br />

business. We offer the top 10 women a R50 000 voucher to be used<br />

towards any educational course. In addition, the top three winners<br />

also receive cash prizes. We also support these businesses on our<br />

social media platform.<br />

We are also working with development finance partners (DFIs) to<br />

create a fund to support SMMEs.<br />

Does Access Bank have particular products aimed at women?<br />

We don’t have specific products aimed at women but through<br />

Womenpreneur Pitch-A-Ton we support women in business<br />

by showcasing the brilliant women entrepreneurs we have<br />

in our country.<br />

What inspired you to get involved in the financial sector?<br />

I have a finance background and at an early stage in my career I<br />

was exposed to commodity trading, hedging, securitisation, etc,<br />

and I found banking to be the most interesting sector to be in as<br />

we see our actions change the course of someone’s life or business.<br />

My finance background helped me to be successful in the financial<br />

services sector.<br />

Your career has been very varied within the financial sector:<br />

do you see your stints in the public sector and various roles in<br />

companies as preparing you for your new role at Access Bank?<br />

I am most grateful to all my previous employers. Every position I<br />

previously held groomed me for my role at Access Bank. I was always<br />

ambitious and I deliberately made career choices to get me to<br />

eventually become a custodian of a bank.<br />

What were the key things you learnt at GIBS and Harvard?<br />

Harvard and GIBS made me appreciate the power of diversity. When<br />

we were given a problem to solve it was amazing to see how people<br />

from different backgrounds (doctors, engineers, lawyers, etc) brought<br />

different views to solve the same problem.<br />

These universities also open a network across the world. I have<br />

friends who live in 86 different countries and I can call upon them at<br />

any time to give me unbiased opinions on problems I am trying to<br />

solve. Harvard and GIBS exposed me to so many different environments,<br />

companies and world leaders. Getting to learn from these outstanding<br />

leaders was priceless.<br />

Have you had particularly influential mentors along the way?<br />

I had many mentors along my career journey and mentorship is critical<br />

to get objective feedback. My standout mentor was Ursula Wingfield<br />

at BMW Financial Services. She was an excellent leader and achieved<br />

so much as a woman. She took me under her wing and gave me<br />

many opportunities to quickly climb the corporate ladder, including<br />

seconding me to work at BMW Financial Services Australia. She taught<br />

me that all a person needs is confidence and clarity of thought and you<br />

can achieve your dreams.<br />

www.opportunityonline.co.za | 27


Coca-Cola Beverages South Africa is<br />

assisting water-stressed communities<br />

Since its inception, the Coke Ville project has distributed over 200-million litres of water.<br />

In response to a looming Day Zero in parts of the Eastern Cape<br />

province, Coca-Cola Beverages South Africa commenced<br />

an ambitious project to work with the Nelson Mandela Bay<br />

Municipality and other key stakeholders, including Gift of<br />

the Givers, to assist vulnerable and distressed communities.<br />

Coca-Cola Beverages South Africa (CCBSA) aims to be part of<br />

the solution to achieve positive change in the world and to build<br />

a more sustainable future for our planet. Since the company’s<br />

community water project was launched nationally in 2020, more<br />

than 200-million litres of water have been supplied in four provinces.<br />

In response to the dire situation in the Nelson Mandela Bay<br />

Metro, where dam levels reached a critically low level with the<br />

very real prospect of taps running dry, CCBSA worked with the<br />

Nelson Mandela Bay Municipality and other key stakeholders<br />

to ensure vulnerable and distressed communities continued to<br />

have access to water.<br />

CCBSA realised that it could not undertake this challenge alone<br />

and set out as part of a strategic private-public partnership to<br />

work with local communities, the NMB Municipality, as well as<br />

signing a Memorandum of Understanding with the Gift of the<br />

Givers Foundation.<br />

Nozicelo Ngcobo, Director of Public Affairs, Communication<br />

and Sustainability at CCBSA, said: “Water is important capital<br />

for the Coca-Cola company, as it is the main ingredient in our<br />

beverages. We need to ensure that everyone has access to clean<br />

running water, especially vulnerable communities hard hit by<br />

the water crisis.<br />

“This is particularly so for the vulnerable girl child and women,<br />

as the primary drawers of water in rural areas. However, we can<br />

do that only if we all understand that water is a finite resource,”<br />

added Ngcobo. The beverages bottling company’s trucks were<br />

leveraged to support the Gift of the Givers with the distribution<br />

of water to struggling communities in the NMB area. The first water<br />

delivery through this initiative was done on 23 June 2022.<br />

The company further donated 20 x 5 000-litre JoJo tanks which<br />

were placed at identified water collection points around the city. This<br />

was to support the rapid roll-out of collection point sites as outlined<br />

in the Municipality’s emergency response plan. In addition, 500 water<br />

wheelers were distributed to communities to aid with water collection<br />

and storage. CCBSA further deployed three off-grid, solar-powered<br />

groundwater harvesting and treatment systems called Coke Villes in<br />

the region. The sites have a combined total of nine systems with a<br />

minimum annual potential of replenishing 90-million litres per annum<br />

at no cost to the beneficiaries. The Coke Ville sites became operational<br />

in August 2022 and are located in the worst-affected areas in NMB<br />

such as Walmer, which at the time was facing serious water shortages.<br />

National programme<br />

Since inception in 2020, the Coke Ville project has distributed over<br />

200-million litres of water in Limpopo, Gauteng, the Eastern Cape and<br />

KwaZulu-Natal. A total of 12 new systems are currently under construction<br />

targeting mainly the Gqeberha area.<br />

To ensure security of water supply, the NMB Municipality concluded<br />

an emergency water supply continuity plan to ensure water supply<br />

to critical installations such as healthcare facilities, schools and police<br />

stations. Commercial and industrial users like CCBSA that receive water<br />

through the Western Water Supply System are also covered by this plan.<br />

This allows businesses to continue focusing on operations and<br />

preserving jobs and livelihoods.<br />

In support of this municipal initiative, CCBSA implemented a six-point<br />

plan that is directed towards securing alternative water supply sources<br />

to support the business continuity, support our local employees, as<br />

well as minimising our societal impact.<br />

Ngcobo said: “How we respond to the water situation in<br />

our country, and how we preserve and manage our use of<br />

water resources to ensure the adequate and sustainable<br />

provision of clean, safe water to communities, will go a<br />

long way towards ensuring water security not only for<br />

us, but for future generations as well.”<br />

CCBSA continues to work alongside the<br />

Municipality and all relevant stakeholders<br />

to avoid Day Zero, while at the same time<br />

implementing its societal intervention<br />

plan to support vulnerable communities<br />

during this period.<br />

We believe that by working together<br />

we will be able to overcome this crisis and<br />

create a more sustainable future for all.<br />

Nozicelo Ngcobo, Director of Public Affairs, Communication and Sustainability at CCBSA


Beverages<br />

South Africa<br />

Since inception, over<br />

400 million<br />

In 2022 alone,<br />

just under<br />

1 billion<br />

In 2022 alone,<br />

over<br />

25 000<br />

Three<br />

in 5 provinces


MOHAIR SUSTAINABILITY<br />

Protecting the land<br />

for generations to come<br />

SAMIL CEO Michael Brosnahan explains that sustainability is much<br />

more than a project for mohair farmers and producers.<br />

What are the main planks of SAMIL’s sustainability policy?<br />

Our core values are honesty and integrity which translate into<br />

looking after our small piece of the world and everything and<br />

everybody in it. To this end, everything we do is questioned as<br />

to whether it will have a detrimental effect on our environment<br />

or our people, whether it be how we farm our goats on the land<br />

or how we process the material in our factories. We only use<br />

chemicals that have been certified by OEKO-TEX or an equivalent<br />

certification proving that they cause no harm to humans or<br />

animals. We have created a work environment on our farms and<br />

in our factories and offices where all employees are viewed as<br />

assets and are treated as such.<br />

How can more jobs be created in the mohair industry?<br />

More jobs in the mohair industry can really only be created by<br />

creating awareness of this wonderful fibre around the world. The<br />

price of mohair limits its general use so the main end uses are<br />

high-fashion items with exclusive big-name brands.<br />

Are your farmers working on projects to protect the land?<br />

Our farmers are not working on “projects” to protect the land – this<br />

is a constant part of everyday life on the farms. The farmer needs<br />

to protect his livelihood, not just for himself but for his children<br />

and his children’s children. Many of our Angora farmers have been<br />

farming goats on the land for more than 100 years, some into the<br />

second and third generation.<br />

What is the Responsible Mohair Standard? Has its introduction<br />

had the desired effect?<br />

The Responsible Mohair Standard or RMS is an international<br />

voluntary standard that addresses animal welfare on goat farms as<br />

well as managing the “chain of custody” of mohair from the certified<br />

farms through to the final products purchased by the consumer.<br />

The key values of RMS are:<br />

• protecting animal welfare<br />

• regenerative agriculture<br />

• social responsibility<br />

• traceability<br />

Its introduction has definitely had the desired effect – mohair is<br />

once again globally desired which helps to protect the more than<br />

30 000 people employed in the industry in South Africa<br />

Do you see growth prospects for mohair globally?<br />

There are no doubt growth prospects for mohair globally as it is such<br />

a versatile fibre. We have to strike a balance, though, between the<br />

price that the farmer needs to ensure his mohair clip is an economic<br />

product to farm and the price that the consumer is prepared to pay<br />

for mohair products in the marketplace.<br />

30 | www.opportunityonline.co.za


yarns@samil.co.za | sales@samil.co.za | www.samil.co.za


CIRCULAR ECONOMY SOLUTIONS<br />

We are at the<br />

dawn of a new<br />

era for business<br />

Bridget Wijnberg and Catherine<br />

Wijnberg of entrepreneurial support<br />

programme provider Fetola describe<br />

the beginnings of the circular epoch.<br />

Fetola’s Circular Economy Accelerator<br />

is keeping track of companies’<br />

progress toward circularity, and<br />

achieving remarkable results.<br />

Cleaning 600 000 kilolitres of used car oil can save 500-billion litres of water.<br />

Credit: Jimmy Nilsson Masth on Unsplash<br />

Early adopters might appear as today’s<br />

revolutionaries, but the onboarding of circular<br />

business models will rapidly become an economic<br />

imperative and a societal obligation.<br />

Given the number of extreme weather events<br />

in 2022, few can dispute the reality that climate change<br />

is here. The KwaZulu-Natal floods of April 2022 were a<br />

devastating example of that, initiating a state of disaster<br />

with over 450 lives lost and an estimated cost of R25-billion.<br />

Globally, the price tag of climate-related disasters in 2022<br />

alone was R500-billion. While the cost of material damage<br />

is easy to quantify, how does one assess the cost in human<br />

misery and irreparable damage to future generations?<br />

As United Nations Secretary-General António Guterres<br />

announced with his opening statement at the Cop27 UN<br />

climate summit: “We are in the fight of our lives, and we<br />

are losing… We are on a highway to climate hell with our<br />

foot on the accelerator.”<br />

Yet despite these loud warning signs, we clearly have<br />

an action deficit problem.<br />

It’s COP number 27 and global leaders have gathered 27<br />

times to discuss this same issue. Tipping points are being<br />

passed again and again, country pledges are being tabled<br />

and ignored. If the realities of 2022 – with widespread floods<br />

also occurring in Pakistan and Nigeria, 16 000 deaths from<br />

heatwaves in Europe and food insecurity from drought<br />

in the Horn of Africa are our warning signs, we no longer<br />

32 | www.opportunityonline.co.za


CIRCULAR ECONOMY SOLUTIONS<br />

have the privilege of time to wait for these global platforms to reach<br />

meaningful mutual agreements on reducing greenhouse gas (GHG)<br />

emissions for a low-carbon future. The baton urgently needs to be<br />

taken into the hands of the wider grassroots community.<br />

South African warming<br />

South Africa is recorded as the 30th-driest country in the world, and<br />

it is warming at twice the global average. Climate change is creating<br />

huge disruption and uncertainty to the water cycle, which means<br />

that we cannot continue with the same disregard for water resources<br />

through over-extraction and pollution. Water stress will displace up<br />

to 700-million people in Africa by 2030, and with South Africa the<br />

most populated nation south of the equator, how will the inevitable<br />

migration trends impact the country?<br />

Water is required at all stages of food production with agriculture<br />

accounting for 70% of the water used throughout the world as<br />

well as a major contributor to greenhouse gas emissions caused<br />

by human activities. Alongside this, food productivity is being<br />

significantly impacted by climate change and has already decreased<br />

by 21%.<br />

Available solutions<br />

The stage is set for radical transformation. We have shifted from<br />

a need to simply try to mitigate the problem by reducing our<br />

GHG emissions to a need for us also to develop ways to survive<br />

the effects of it, through climate adaptation. This is now both<br />

an economic and a social imperative. Fortunately, there are<br />

solutions at hand and the prospects of transitioning to a new,<br />

circular economy that designs out waste is a real opportunity.<br />

It is one that also addresses the other critical societal factors<br />

in the South African landscape, namely unemployment and<br />

poverty, both of which cannot be ignored. A telling study on<br />

the personal economic situation of individuals reported that<br />

87% describe their situation as stretched.<br />

Yet, despite this backdrop we are an extremely wasteful<br />

society, and roughly 122-million tons of waste are produced by<br />

South Africans each year. Of this, an estimated 10% is recycled or<br />

recovered for other uses, with 90% being thrown away. This waste is<br />

an important part of the value chain yet there remains the mentality<br />

that waste is both worthless and inevitable. However, by changing<br />

this to a narrative where waste has value, it opens the potential<br />

to build a virtuous cycle of use and reuse. The circularity model<br />

achieves this by rethinking existing models which create waste to<br />

incorporate concepts such as rental, repair and life extension which<br />

make clear business and environmental sense.<br />

Collaboration across the value chain is also a key component in<br />

future solutions and the Southern Basadi Multipurpose Co-operative<br />

led by Delores Mackenzie is one such company which has created<br />

a partnership with Netcare Adcock Ingrams to take used IV bags,<br />

an item previously considered worthless, and turn them into<br />

durable, waterproof and incredibly cost-effective school shoes.<br />

Southern Basadi Multipurpose Co-operative makes school shoes out of IV drip bags. Credit: Fetola<br />

Once outgrown these again can be re-crumbed and re-made<br />

into new shoes in an endless circle, meaning that the reclaimed<br />

plastic never has to end up in landfill.<br />

While farming is a huge contributor to the climate change<br />

challenge there are immediate solutions that can be adopted.<br />

Synthetic nitrogen-based fertilisers, which are a major source of<br />

GHG emissions (their use having increased 800% in the last six<br />

decades), can be replaced by climate-friendly organic fertilisers<br />

that replenish the land, capture carbon in the soil and limit<br />

methane emissions.<br />

One collaborative effort between municipalities who were<br />

battling with a toxic mountain of sewage sludge and a creative<br />

agripreneur who saw value in this waste is doing just that. This<br />

innovative circular business, Agriman, currently processes a small<br />

portion of the 700 000 tons of sewage sludge that goes to SA<br />

landfills each year. The company aims to expand and significantly<br />

scale the benefits of regenerative agriculture, reducing waste to<br />

landfill and increasing employment where it is needed most.<br />

Similarly, Dilex, which initially received short shrift from oil<br />

refineries concerned that its model would affect their profit, is<br />

now a business cleaning 600 000 kilolitres of used car oil, that<br />

saves 500-billion litres of water annually from contamination.<br />

This South African company has successfully shifted a typically<br />

cradle-to-grave (take, make, waste) business model into a cradleto-cradle<br />

model where the oil is as an eternal resource and<br />

considerate of future generations. The cleaned oil is cheaper than<br />

crude and can be repurposed again and again, resulting in both<br />

cost savings and a lower environmental impact.<br />

The time has long passed for simply accepting wasteful,<br />

polluting business models. Circularity can be incorporated either<br />

by tweaking elements of the production chain, or full immersion<br />

into a low-carbon, high-sustainability, circular model, often<br />

resulting in improved profitability alongside environmental and<br />

www.opportunityonline.co.za | 33


One of the companyies on Fetola’s Circular Economy Accelerator is expert at using sewage sludge in agricultural settings. Credit: GreenCape<br />

social benefit. The circular economy is also an ideal entry point<br />

for startups in informal settlements. The mindset of repair and<br />

reuse is already entrenched in many of these communities, the<br />

basic starting point for circular transformation.<br />

from governments, a step-change from investors and awareness and<br />

action from business. By supporting each other in this journey we can<br />

build a sustainable future that works.<br />

Circular Economy Accelerator<br />

Circular business models have been proven to be profitable,<br />

people-friendly and environmentally beneficial. They are accessible<br />

in many forms to all, from the smallest SME to corporations and<br />

government. Agriman, Dilex and Southern Basadi are businesses<br />

on Fetola’s Circular Economy Accelerator, which measured an<br />

average 23% increase in revenue growth after just six months on<br />

the programme for participants, many of whom began with no<br />

circularity at all, demonstrating that often all that is needed is a<br />

little guidance and support.<br />

In the race against time, we need to ask ourselves not if, but how<br />

do we unlock change fast enough? For this our response to the<br />

rapidly accelerating and very real effects of climate change needs<br />

to be decisive, immediate and at three levels – supportive policies<br />

Catherine Wijnberg<br />

Bridget Wijnberg<br />

About Fetola<br />

Fetola is a leading provider of scalable, world-class entrepreneurial support programmes that deliver lasting social, environmental and economic impact. Its goal is to grow the economy,<br />

create inclusive wealth and generate jobs by helping people build businesses that last. This is achieved by providing proven business strategy, systems and support, while unlocking<br />

the personal leadership power of entrepreneurs who are inspired to leave a lasting legacy. Fetola means “change” in Sesotho and the Fetola team are inspired by UN Global Goal 17<br />

to generate change at a global scale and foster partnerships that are a force for good.<br />

For more information, visit fetola.co.za<br />

34 | www.opportunityonline.co.za


FOOTWEAR<br />

Bata South Africa taking<br />

strides towards expansion<br />

Leading footwear producer, Bata South Africa, is stepping forward with its sights set on expanding<br />

its local business and increasing exports across the African market in the next five years.<br />

Bata South Africa Country Manager, Michael Wyatt<br />

Bata is a household name globally with a reputation for<br />

affordable, reliable footwear. It currently produces over<br />

five-million shoes a year at its manufacturing facility in<br />

Loskop, Estcourt, in KwaZulu-Natal, mainly comprising<br />

Toughees school shoes, Bata Industrials safety footwear,<br />

Safari for the outdoor adventurer and the Tomy Takkies line.<br />

Country Manager, Michael Wyatt, says the focus is now on<br />

vigorous expansion and distribution of some of Bata’s global<br />

labels to existing local manufacturing.<br />

“We’re well underway in executing the first steps of our 2023<br />

to 2027 strategy and are introducing new collections of select<br />

international sneaker, comfort and outdoor categories to the local<br />

market,” he says.<br />

These include top-selling global children’s footwear range<br />

Bubblegummers, North Star sneakers, Power athletic footwear, the<br />

outdoor-inspired Weinbrenner range, and the comfort-focused Comfit<br />

line. Harnessing the power of partnerships will be a key focus as Bata SA<br />

plugs into this global Bata strategy for growth. New retail negotiations<br />

are at an advanced stage.<br />

“Having closed our own branded retail stores in South Africa several<br />

years ago, we currently retail through major chains including Ackermans,<br />

PEP, Jet, Edgars, Mr Price and Shoe City, as well as select wholesale<br />

36 | www.opportunityonline.co.za


FOOTWEAR<br />

distributors and e-commerce platforms Zando, Superbalist and<br />

Takealot. The focus now is on adding shelf space within South Africa’s<br />

leading retail chains,” says Wyatt.<br />

“As a global retailer, we can provide African customers with<br />

products, brands and insights from around the world that serve<br />

as unique selling points and opportunities for mutual growth.<br />

Our intention is not to simply sell our brand wholesale, but rather<br />

to establish long-term partnerships with retailers and offer them<br />

exclusive, distinctive products,” he adds.<br />

Bata is also investing in its back-end systems, logistics,<br />

marketing and human capital, launching a new enterprise<br />

resource planning system, an African warehouse management<br />

system and a direct-to-consumer e-commerce platform in<br />

support of its expansion model.<br />

Increasing African footprint<br />

With 21 manufacturing sites worldwide, the Bata Group sells 150-million<br />

pairs of shoes each year, has a retail network of over 5 300 stores<br />

across more than 70 countries, and employs 32 000 people globally.<br />

Its African production facilities are located in South Africa, Kenya,<br />

Zimbabwe and Zambia, with commercial activities (both wholesale<br />

and retail) in Botswana, Malawi and Uganda.<br />

Indications are that 2023 will be a bumper year for Bata SA<br />

exports. The company exports shoes to sister Bata companies in<br />

Africa and to non-Bata wholesalers in countries where Bata does<br />

not have a presence.<br />

A partnership with the South African Footwear and Leather Export<br />

Council (SAFLEC) has boosted export capacity, with Bata providing<br />

technical and design guidance across a network of 15 local factories<br />

now producing fashion footwear for Bata’s African stores.<br />

“For the year to date, we’ve grown total African exports by over<br />

50% from 2022, including Congo, Brazzaville, Eswatini, Lesotho,<br />

Mauritius, Mozambique, Namibia, Nigeria and Tanzania, while also<br />

pursuing opportunities in other African markets,” says Wyatt.<br />

“Our domestic sourcing programme has effectively transitioned<br />

the traditional procurement of fashion and family shoes from<br />

Eastern suppliers to South African manufacturers, with other local<br />

manufacturers now contributing around 30% of our overall exports<br />

to Africa,” he explains.<br />

Community focused<br />

Bata’s South African manufacturing facility employs roughly 500<br />

people, mostly women from the surrounding community, and is a<br />

mainstay of local manufacturing and distribution.<br />

A number of community initiatives are underway across South Africa<br />

through the global Bata Children’s Programme which alleviates the burden<br />

on disadvantaged children through four key focus areas – Education,<br />

Health and Safety, Living in a Sustainable World and Mentoring and Skills.<br />

“Even as we’re preparing for an exciting period of long-term growth, a<br />

sense of community will always be at the heart of what we do as Bata.<br />

We’ve been in South Africa for over 75 years since 1947 and want to see<br />

this country and continent prosper,” concludes Wyatt.<br />

Bata’s African production facilities are located in South Africa, Kenya, Zimbabwe and Zambia, with commercial<br />

activities (both wholesale and retail) in Botswana, Malawi and Uganda.<br />

www.opportunityonline.co.za | 37


SUSTAINABLE MINING<br />

Operationalising the<br />

mining of tomorrow<br />

The 2023 Investing in African Mining Indaba had a distinctly future-oriented focus.<br />

One of the event’s associate sponsors, dss + , presented its sustainable operations<br />

vision, which aims to go beyond net zero to achieve long-term resilience.<br />

New technologies are part of the solution to mining more sustainably. Credit: Anglo American<br />

As South Africa progresses towards its 2050 net-zero<br />

emissions targets, it needs to transition from a fossilfuel-based<br />

energy system to one that is renewable and<br />

ultimately more sustainable.<br />

The latter is totally dependent on mining: copper is<br />

believed to be the most important metal for electrification and is<br />

necessary to all net-zero plans; nickel, lithium, cobalt and graphite<br />

are also critical to meet demand for applications such as energystorage<br />

batteries and electric vehicles.<br />

As downstream companies seek adequate, affordable, secure and<br />

ethical supplies of critical minerals, the only path forward for mining<br />

companies is to pivot their operations toward more sustainable<br />

forms of mining.<br />

However, driving substantial change at scale requires engaging<br />

multiple stakeholders to bring together perspectives and resources<br />

that create lasting operational solutions.<br />

Addressing these operational challenges and building the<br />

required organisational capabilities is paramount to the success of<br />

the industry in the coming years.<br />

Drawing from a wealth of experience in operational excellence,<br />

sustainability and operational risk management from around the<br />

globe, operational management consultancy dss + is well-positioned<br />

to assist local mining companies in taking advantage of the situation<br />

and building the required organisational capabilities.<br />

"We can work with mines to move beyond their net-zero roadmaps,<br />

using our extensive experience in operational transformation to<br />

realise their ESG targets and implement the necessary changes for<br />

future resilience,” says Global Mining and Metals Director at dss + ,<br />

Johan Coetzee.<br />

“We aim to help clients in the mining sector to build the<br />

organisational capabilities required to embed sustainability mindsets,<br />

behaviours and processes that establish fully operationalised<br />

sustainability projects. This also facilitates enhanced production and<br />

responsible asset stewardship in the process."<br />

The group’s involvement in the Mining Indaba added significant<br />

value with some high-impact sessions delivered by seasoned<br />

veterans of the industry. On the Indaba’s main stage, Coetzee<br />

discussed paths to resilience in mining operations, and how mines<br />

can lay the foundations to manage complex large-scale volatility<br />

challenges today and in the future.<br />

Helder Santos, Director of Mining and Metals for the Europe, Middle<br />

East and Africa region, stands among Africa’s industry pioneers<br />

working to build the organisational capabilities for sustainable mines<br />

of the future.<br />

Having conducted several successful transformation programmes<br />

in the region, Santos provided in-depth industry insights around<br />

operational excellence and operational-risk management that<br />

facilitate paths to the new mining of the future, including energy<br />

transition and social impact.<br />

However, discussions about<br />

the future of mining and the<br />

management of key operational risks<br />

cannot be had without conversations<br />

around safety, and in particular<br />

the management of processes to<br />

ensure asset integrity and impact on<br />

communities.<br />

To this end, Jaco Pieterse,<br />

Principal Consultant and Process<br />

Safety Management expert at dss + ,<br />

moderated a panel about tailings,<br />

safety, asset management and<br />

community impact.<br />

In Sub-Saharan Africa, dss + is<br />

helping to build baseline resilience for<br />

its mining and metals industry clients,<br />

as well as organisations in related or<br />

downstream sectors, like oil and gas,<br />

chemicals and manufacturing.<br />

Johan Coetzee, dss+ Global Mining<br />

and Metals Director<br />

About dss +<br />

The industries and sectors that power our world are changing. At this crucial time in history, they should find ways not just to succeed, but to empower and protect the people, ecosystems<br />

and economies they touch. It’s not an easy task. But we work with our clients to do just that – and much more. We help our clients to save lives and create a sustainable future.<br />

More information at https://www.consultdss.com/about/about-us/


SUSTAINABLE MINING<br />

Minerals Council Compact<br />

A mandatory code of conduct binds mining companies to ethical<br />

practices, including a commitment to consideration of sustainable<br />

development when making decisions.<br />

Credit: Thungela Resources<br />

The Membership Compact is a mandatory code of ethical<br />

business conduct to which members of the Minerals<br />

Council South Africa subscribe. The overriding vision<br />

and mission of the Minerals Council is to reposition<br />

the South African mining sector as South Africa’s<br />

pre-eminent industrial sector and to double real investment in<br />

mining by 2030. This is an industry strategy that will be owned<br />

by all Minerals Council members with the overriding objective<br />

of building a trust-based social pact with key stakeholders,<br />

creating an overwhelmingly positive investment and operating<br />

environment for the sector that makes the global investment<br />

community and mining industry recognise that South Africa has<br />

emerged into an investment destination of choice for the mining<br />

sector. The benefits of achieving this vision are incalculable and<br />

will be a game-changer for the country and its ability to achieve<br />

the National Development Plan objectives, to which members of<br />

the Minerals Council subscribe.<br />

A COMPACT OBJECTIVE<br />

The primary objective of the members of the Minerals Council<br />

is to ensure that the mining industry is able to realise its latent<br />

growth potential and so contribute meaningfully to the national<br />

objectives for sustainable development, transformation and<br />

the growth of the South African economy. This can best be<br />

achieved through:<br />

• Building trustworthy relationships with key stakeholders<br />

• Transforming the mining industry<br />

• Partnering with communities surrounding existing and future<br />

mining operations and those in labour-sending areas<br />

GUIDING PRINCIPLES<br />

The guiding principles serve as a framework to enable Minerals Council<br />

members to achieve the objectives of the Compact. Minerals Council<br />

members undertake to integrate the guiding principles into their<br />

management systems to ensure consistent application across all operations.<br />

The following 10 guiding principles demonstrate the commitment of<br />

members to manage their operations in a responsible manner. Members<br />

commit, in all aspects of their businesses and operations, to:<br />

• Implement and maintain ethical business practices and sound<br />

systems of corporate governance<br />

• Strive to achieve zero harm in respect of mine health and safety by<br />

complying with the Mine Health and Safety Milestones<br />

• Integrate sustainable development considerations within the<br />

corporate decision-making process<br />

• Respect fundamental human rights and respect cultures, customs<br />

and values in dealing with employees and others who are affected<br />

by their activities<br />

• Implement risk-management strategies based on valid data and<br />

sound science<br />

• Continuous improvement of their environmental performance<br />

• Contribute to conservation of biodiversity and integrated<br />

approaches to land use planning<br />

• Facilitate and encourage responsible product design, use, reuse,<br />

recycling and disposal of their products<br />

• Contribute to the social, economic and institutional development of<br />

the communities in which they operate and in labour-sending areas<br />

• Implement effective and transparent engagement, communication<br />

and independently verified reporting arrangements with<br />

their stakeholders.<br />

Minerals Council website: www.mineralscouncil.org.za<br />

www.opportunityonline.co.za | 39


MINING INDABA REVIEW<br />

President Cyril Ramaphosa<br />

reassures investors that<br />

SA’s mining challenges<br />

are being addressed<br />

The Webber Wentzel Mining Team summarises the points raised by President Cyril Ramaphosa<br />

in his address to the Investing in African Mining Indaba 2023 and comments on key aspects<br />

of the speech. A recurring theme of the speech was that there are many important aspects<br />

in which government can help to boost mining investment in South Africa.<br />

Addressing Mining Indaba 2023, President Cyril Ramaphosa<br />

expanded on the solutions to the challenges identified by<br />

Minerals and Energy Minister Gwede Mantashe. The President’s<br />

address covered more of the details that potential investors<br />

expected to hear, and he made a firm commitment to “remove<br />

all impediments and create an environment that will drive sustained growth<br />

in mining”. The overall message was that the South African government has<br />

made strides in arresting challenges faced in mining and that it desires to work<br />

with the private sector to eradicate these challenges.<br />

The President addressed energy constraints, the acceleration of economic<br />

reforms, safety and security (which includes illegal mining and infrastructure)<br />

and the slow pace of the government’s structural reform programme.<br />

Secure supply of electricity<br />

To realise South Africa and its mining sector’s growth<br />

objectives, the President put the achievement of a<br />

secure supply of electricity at the top of his list of four<br />

actions. We believe he is correct to prioritise electricity<br />

security in this manner because of the huge impact<br />

the electricity crisis is having on the country and, in<br />

particular, the mining sector.<br />

The President referred to the National Action Plan to<br />

improve performance of our existing power stations: to add<br />

new generation capacity to the grid as quickly as possible<br />

and to import 100MW more electricity capacity from<br />

neighbouring countries than the current 300MW being<br />

imported. He referred to the success of the renewable<br />

energy IPP procurement programme and agreements for 25<br />

new projects that will soon be proceeding to construction.<br />

He referred to the removal of the licensing threshold,<br />

enabling new generation by private-power producers,<br />

and the rate at which the mining sector is generating its<br />

own electricity. Minerals Council SA has said there are 89<br />

embedded-power-generation projects, with a focus on<br />

renewable energy solutions, contributing to South Africa’s<br />

decarbonisation process.<br />

We support these measures, especially the President’s<br />

recognition of South Africa’s abundant renewable energy<br />

resources but would recommend that the Presidency also<br />

urgently apply its mind to unblocking grid constraints. In<br />

the recently closed Round 6 of the REIPPPP, only 860MW of<br />

a targeted 5 200MW of projects was awarded to preferred<br />

bidders because of a shortage of grid capacity. Not a single<br />

wind project was awarded preferred bidder status. We are<br />

indeed seeing large volumes of private-power capacity<br />

being worked on in the country, but more can be done<br />

40 | www.opportunityonline.co.za


MINING INDABA REVIEW<br />

to unblock constraints to bringing these projects on stream in the<br />

shortest possible space of time, including a clear system for grid<br />

capacity allocations and urgent grid capacity development.<br />

Regulatory reform<br />

The President said government was accelerating economic reforms<br />

to improve the operating environment. This included reducing<br />

timeframes for environmental authorisations, exempting energy<br />

projects from some environmental authorisations and speeding<br />

up the registration of new projects and grid-connection approvals.<br />

He also said government would continue to work to reduce<br />

backlogs in prospecting and mining applications, which has been a<br />

problem for the mining industry over many years. Ramaphosa said<br />

that over the past 18 months, the backlog had been cut by 42% and<br />

he promised it would be eliminated in the “short to medium term”.<br />

The president said the Department of Minerals and Energy (DMRE)<br />

is in the process of buying an “off the shelf” cadastral system which<br />

could be adapted to South Africa’s needs. This is an essential step to<br />

ensuring a speedy and transparent system of granting licences.<br />

On logistics, the President referred to the partnership between<br />

Transnet and Mincosa and said opening up “key routes” to third-party<br />

operators would bring much-needed investment for upgrading,<br />

maintenance and rehabilitation.<br />

Illegal mining<br />

The President referred to the multi-disciplinary Economic<br />

Infrastructure Task Teams established by the SAPS that were<br />

operating in 20 hotspots and had already made a number of<br />

arrests. Transnet has developed relationships with the industry<br />

and private security to address cable theft and vandalism on the<br />

freight rail network. Given increased safety and security threats<br />

in abandoned and operational mine sites, more consideration<br />

should be given to increasing security awareness, training,<br />

capacity building and governance.<br />

Attractiveness to investors<br />

Ramaphosa highlighted that South Africa presents a particularly<br />

attractive destination for investors looking for opportunities in the<br />

green-energy transition and the African Continental Free Trade<br />

Area (AfCFTA).<br />

This is an important, positive message. South Africa’s laws are<br />

considered some of the most progressive in the world, and already<br />

ensure adequate consideration of E, S and G risks, impacts and<br />

opportunities. Our Just Transition Framework was commended<br />

at COP27 and is being used as a benchmark for other developing<br />

countries to contextualise their own transition journeys. Our policy<br />

landscape is progressing as international developments drive action.<br />

ESG<br />

Ramaphosa said the implementation of Social and Labour Plans<br />

(SLPs) must be improved, as “mining must be at the forefront of<br />

social development”. Basically, the President stated that if the<br />

mine has water, the community should have water. If the mine<br />

The authors argue that more can be done to unblock<br />

constraints to the development of renewable energy.<br />

Credit: Redstone CSP Project, Grinaker-LTA<br />

has roads, the community should have roads. If the mine has a<br />

hospital, the community should have a hospital.<br />

There is certainly an obligation on mining companies to<br />

implement their SLPs and there is already a mechanism to monitor<br />

implementation in the SLP regulations. When implementation is<br />

lacking, government has the means to identify and deal with the<br />

defaulting parties. International frameworks and expectations similarly<br />

require businesses to recognise and protect against adverse human<br />

rights impacts in their operations and value chains.<br />

However, it is the responsibility of the State to protect and promote<br />

basic and fundamental human rights. The United Nations’ Guiding<br />

Principles on Business and Human Rights expressly acknowledge the<br />

State’s duty to protect human rights. These obligations are similarly<br />

imposed on government under our Constitution, such as the duty<br />

to provide access to sufficient food, water and healthcare services (in<br />

section 27 of the Constitution).<br />

While the social obligations of mines vis-à-vis their host<br />

communities cannot be gainsaid, government cannot superimpose<br />

its constitutional and international obligations onto the mining<br />

sector. The interplay between these obligations, and when mining<br />

companies can and should step in, must be carefully considered<br />

and balanced.<br />

Setting up a good cadastral system adapted to South Africa’s<br />

needs is an essential step to ensuring a speedy and transparent<br />

system of granting mining licences. Credit: Richards Bay Minerals


STEAM GENERATION<br />

Blending imagination<br />

and creativity for<br />

six decades<br />

Piping technology<br />

Pipe supports<br />

Plant erection services<br />

Explosive welding<br />

7912 Steinmuller - Engineering News Boilers Feature - Advert 210x275mm<br />

Steinmüller Africa started in South Africa in 1962 working on the<br />

power stations Grootvlei and Hendrina, before moving on to the other<br />

baseload stations of Kriel, Duvha, Tutuka and Majuba as they were<br />

constructed. More recently, Steinmüller Africa has been a subcontractor<br />

to Hitachi for the fabrication of the Medupi and Kusile boilers, which<br />

are supercritical boilers that operate at main steam conditions of 240<br />

bar at 560°C, with reheat temperatures up to 570°C. Bolofo notes of<br />

this specialised work, “This requires Level 1 high-pressure pipework,<br />

which is an area of expertise for us.”<br />

When various other power stations such as Camden, Grootvlei and<br />

Komati were either mothballed or returned to service, Steinmuller Africa<br />

was again called on to provide the expertise for these complex tasks.<br />

Steam generation is also at the heart of Steinmüller Africa’s operations<br />

in other sectors, such as pulp and paper, sugar milling and processing or<br />

in the generation or reticulation of steam in petrochemical plants and<br />

fuel refineries. From doing all the fabrication and following up with the<br />

installation and commissioning of boilers, the company has progressed<br />

to become a key service provider for ongoing plant maintenance.<br />

Speaking of the company’s facilities in Pretoria North, Bolofo says,<br />

“Our fabrication equipment there is world class.” This includes steam<br />

headers and the Cojafex Induction Bending Machine for pipe spools,<br />

both of which are unique to the African continent.<br />

Some of the specifications of the Pretoria facility are:<br />

• 50 000m² under-roof fabrication workshops, 50-ton lifting capacity<br />

• some bays are 35m wide and 700m long<br />

• pressure component production capacity of one-million hours per year<br />

Steinmüller Africa Director, Moso Bolofo<br />

Steinmüller Africa is a leading company in steam<br />

generation which has been offering its expert services<br />

in and beyond South Africa for six decades.<br />

Moso Bolofo, Steinmüller Africa Director, is proud of<br />

the company’s legacy which is built on high levels of<br />

training and precision in execution and which aims to combine<br />

first-class engineering with imagination and creativity.<br />

Steinmüller Africa offers comprehensive expertise in welding<br />

and environmental technology, manufacturing, maintenance,<br />

lifetime extension plans and project management. In addition, the<br />

company provides a wide range of cranes, lifting gear, welding<br />

equipment and mobile offices for site establishment. All of these<br />

services and areas of specialisation have evolved around the core<br />

industrial focus, steam generation.<br />

Piping Division excellence<br />

Says Bofolo, “Steinmüller Africa’s Piping Division in Pretoria is a true onestop<br />

shop for all induction bending requirements. It offers induction<br />

bending of pipes 48-850mm in diameter and a maximum wall thickness<br />

of 120mm with a maximum radius of 4 600mm.<br />

“The team also provides shop fabrication after bending, which<br />

entails heat treatment, pipe end preparation, spool fabrication, surface<br />

preparation and packing. Advantages of the bending facilities are high<br />

accuracy of shape, custom-made individual bends and less butt-welds<br />

using complex bends. Based on the requirements and application of the<br />

material, it might be crucial to heat-treat induction bends. Steinmüller<br />

Africa has furnaces with accurate temperature up to 1 200⁰C. We also<br />

specialise in electrical post-weld heat treatment, which is crucial to the<br />

quality and integrity of welding on high-pressure parts and pipelines.<br />

“Steinmüller Africa’s history proves the claim of being an end-to-end service<br />

provider, that really does look at the whole lifecycle of a plant, from conceptual<br />

design, manufacture and installation and, thereafter, to the maintenance and<br />

all the way through the service life until de-commissioning.”<br />

42 | www.opportunityonline.co.za


60 60<br />

CELEBRATING<br />

CELEBRATING<br />

CELEBRATING<br />

YEARS YEARS<br />

YEARS<br />

of Outstanding Customer Service<br />

and of Outstanding Making Steam Customer Generation Service Work<br />

and Making Steam Generation Work<br />

We have come a long way,<br />

We have come a long way,<br />

6 decades and counting!<br />

6 decades and counting!


SMALL BUSINESS AND RENEWABLES<br />

How small business can benefit<br />

from renewable energy<br />

Pieter Bensch, Executive Vice President for Sage Africa & Middle East, details how<br />

the new SME Climate Impact Report shows the way to a brighter future through<br />

renewables for small and medium businesses.<br />

South Africa’s shortfall of power generation capacity has<br />

reached beyond crisis levels. The country experienced more<br />

days and hours of loadshedding in 2022 than in any other<br />

year, but there was also the longest stretch of unbroken<br />

loadshedding across September and October. It’s clear there<br />

will be no quick fixes for this long-standing challenge.<br />

In crisis lies the opportunity for organisations of all sizes, including small<br />

and medium businesses (SMBs). The public conversation often focuses<br />

on the challenges and costs of loadshedding for smaller businesses and<br />

how these can be mitigated. But a more empowering way to look at it is<br />

as a chance for SMBs to champion and lead the shift to a cleaner, more<br />

sustainable energy world.<br />

The SME Climate Impact Report, commissioned by Sage and launched<br />

in partnership with Oxford Economics and the International Chamber<br />

of Commerce (ICC), shows that SMBs’ footprint totalled 29% of nonhousehold<br />

emissions in South Africa when greenhouse gases generated<br />

in their supply chains were considered.<br />

As such, SMBs can play a key role in the transition to cleaner energy.<br />

Let’s start with the enormous demand we see in the market for<br />

renewables. From independent power producers (IPPs) building wind<br />

and solar farms to feed into the grid to large companies self-provisioning<br />

power to solar installations for SMBs and homes – there are plenty of<br />

growth opportunities.<br />

In 2020, electricity generated from renewables amounted to a mere<br />

10.5% of the South African national total. One researcher forecasts that<br />

South Africa’s renewable power capacity will increase at a compound<br />

annual growth rate of 10.7% from 2021 to 2035 to reach an estimate of<br />

40.6GW by 2035, which will constitute 48.3% of total installed capacity.<br />

Solar offers small businesses the prospect of becoming<br />

increasingly independent from the grid and reducing their<br />

power bill over time. Domestic and small business solar<br />

installations can be done to suit the customer’s needs. Credit:<br />

Versofy Solar<br />

Opening the floodgates<br />

President Cyril Ramaphosa recently opened the floodgates for<br />

renewables investment, announcing a broad package of reforms.<br />

These include making it easier for large power users to self-provide<br />

up to 100MW of embedded power generation, launching an Eskom<br />

feed-in tariff for solar users to sell power to the grid, and acceleration<br />

of IPP rollouts.<br />

This creates enormous opportunities for entrepreneurs and SMBs<br />

throughout the supply chain, from providing and installing systems to<br />

manufacturing components and playing a role in power storage and<br />

44 | www.opportunityonline.co.za


SMALL BUSINESS AND RENEWABLES<br />

provision. The market is far from saturated, and skills are in short<br />

supply, creating compelling entrepreneurial prospects in an industry<br />

with a bright future.<br />

The pace of innovation in renewables has been astonishing;<br />

we could envisage SMBs playing a leading role in driving further<br />

progress. One of the lessons we could take from the loadshedding<br />

crisis is that avoiding another monopoly would be highly desirable.<br />

Instead, we could foster a renewables ecosystem with competition<br />

at every level – from installation to power provision.<br />

In fact, driving entrepreneurship is essential for a just transition.<br />

Government, labour and communities are justifiably concerned<br />

about the loss of fossil fuel jobs and the poor getting left behind<br />

in the renewable energy revolution. An inclusive renewables<br />

industry would help address these challenges by potentially<br />

creating 250 000 new jobs over the next 25 years and off-grid<br />

power solutions for rural communities.<br />

Harnessing renewables in small businesses<br />

Of course, not every SMB will want to become directly involved in<br />

the renewables industry, but every SMB uses electricity. Herein lies<br />

an opportunity for SMBs to evaluate ways of harnessing alternative<br />

energy to improve business resilience, sustainability and efficiency.<br />

Rapid renewables innovation means a strong business case for<br />

going solar.<br />

For most businesses, barring those with heavy machinery or<br />

commercial fridges, solar panels and battery backup are excellent<br />

backup power sources. They’re cleaner, quiet and don’t depend<br />

on expensive fuel. What’s more, solar offers small businesses the<br />

prospect of becoming increasingly independent from the grid and<br />

reducing their power bill over time.<br />

Some municipalities, such as Cape Town, allow businesses to feed<br />

power back to the grid for a rebate. Over time, solar installations will<br />

pay for themselves, even if you don’t factor productivity through<br />

loadshedding into the equation. Becoming more sustainable is also<br />

a good reputational move that enhances an SMB’s standing with<br />

customers and suppliers.<br />

Tools such as Spherics, a carbon-accounting solution from<br />

Sage, can help businesses easily understand and reduce their<br />

environmental impact. Though not yet available in South Africa, it<br />

will help SMBs manage their carbon footprint and the data shows<br />

where the low-hanging fruit is for SMBs in making the transition.<br />

_________________<br />

It’s clear the future is<br />

renewable. Energy reform is<br />

an opportunity for businesses<br />

to increase growth and<br />

become more sustainable.<br />

________________<br />

The key to securing the energy future<br />

Given that coal and nuclear plants are built on decade-plus<br />

timespans, solar and wind are the best options to address South<br />

Africa’s power shortfall rapidly. But the backstory is that we need<br />

to gradually wean ourselves from fossil fuels to meet our climateemission<br />

promise to the global community and play our part in<br />

addressing climate change.<br />

It’s clear the future is renewable. Energy reform is an opportunity<br />

for businesses to increase growth and become more sustainable.<br />

SMBs need to take their rightful place at the energy reform table,<br />

so they don’t get left behind. Government and big business would<br />

be wise to tap into the resourcefulness and innovation of the SMB<br />

sector to help drive a faster and more successful transition.<br />

About Sage<br />

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses served by us, our partners and accountants. Customers<br />

trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and<br />

governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to<br />

tackle digital inequality, economic inequality and the climate crisis.<br />

Website: www.sage.com/za<br />

www.opportunityonline.co.za | 45


EXPLORATION FOR DEVELOPMENT<br />

Helium and<br />

natural gas<br />

could be<br />

game-changers<br />

Projects that started as<br />

licences approved by<br />

Petroleum Agency South<br />

Africa are starting to<br />

produce results, results<br />

that will boost the South<br />

African economy.<br />

Filling up at a petrol station might never be the same<br />

again. As a result of exploration rights first being issued<br />

by Petroleum Agency South Africa (PASA) 16 years ago,<br />

South Africa now stands on the brink of a brand-new<br />

market in liquid natural gas (LNG) and helium. Which could<br />

have a transformative effect on the regional economy.<br />

In 2007 exploration rights to the Virginia area were granted to<br />

a company which later became Tetra4, a wholly-owned subsidiary<br />

of Renergen. In 2012 a full onshore petroleum production right<br />

was awarded and a full Environmental Impact Assessment was<br />

completed in 2017.<br />

In July 2022 a milestone called “natural gas to plant” was<br />

achieved. This test allows for the system to be comprehensively<br />

tested, with the inlet line from the gas-gathering system opened<br />

to the process plant and then on to the natural gas filtration<br />

and pre-compression system. In September 2022, commercial<br />

operations of the company’s LNG plant began and in January 2023<br />

the announcement was made that helium production had begun.<br />

As custodian, Petroleum Agency SA ensures that companies<br />

applying for gas rights are vetted to make sure they are financially<br />

qualified and technically capable, as well having a good<br />

environmental track record. Oil and gas exploration requires<br />

enormous capital outlay and can represent a risk to workers,<br />

communities and the environment. Applicants are therefore<br />

required to prove their capabilities and safety record and must<br />

carry insurance for environmental rehabilitation.<br />

The Tetra4 Virginia Gas Project is the only holder of an onshore<br />

petroleum production licence issued by the Department of<br />

Mineral Resources and Energy (DMRE) through PASA. The<br />

production right area covers 187 000 hectares around the towns<br />

of Welkom, Virginia and Theunissen.<br />

Whereas it took nine years to find the R1.2-billion needed to fund<br />

the first phase of Virginia Project, investors are now looking very<br />

keenly at its prospects. An amount of R3.6-billion has been invested<br />

by Ivanhoe Mines to secure some offtake rights and the Central<br />

Energy Fund has purchased a 10% stake in Tetra4 for R1-billion.<br />

This is the sort of development and inward investment that is<br />

promoted and encouraged by PASA.<br />

Sproule, a resources accreditation agency, has given an updated<br />

report on the helium and methane reserves in the Virginia gas field.<br />

The results were even more positive than previous estimates, with<br />

helium reserves up by 620% and methane reserves by 427%. Every<br />

computer microchip in the world is produced in the presence of<br />

helium and the world uses 85 tons of it every day.<br />

Bulk Hauliers International Transport (BHIT) was among the first<br />

logistics companies to sign an agreement to take LNG from Tetra4.<br />

About 50 of BHIT’s trucks will receive the fuel, which should lead to<br />

lower operating and maintenance costs.<br />

With the transport sector contributing significantly to pollution,<br />

the potential for transformation through these measures is<br />

enormous. Renergen has signed an agreement with TotalEnergies<br />

for distribution and sales. Renergen intends equipping filling stations<br />

with LNG at strategic locations across South Africa to cater for the<br />

logistics industry. The first two such stations will be Total stations<br />

in Johannesburg and Durban that will be rebranded in green. One<br />

station is planned for Harrismith on the busy N3 highway which links<br />

these two cities.<br />

46 | www.opportunityonline.co.za


EXPLORATION FOR DEVELOPMENT<br />

Contracts have been signed and trucks are being filled up. Trucking companies have<br />

started signing up to use liquid natural gas to fuel their vehicles, citing savings and<br />

cleaner burning engines. A vast field of natural gas in the northern Free State, regulated<br />

by Petroleum Agency South Africa, means that this trend could grow. Credit: Renergen<br />

Other manufacturing concerns such as SA Breweries and<br />

Ardagh Glass Packaging have also signed up to take LNG. Bespoke<br />

depots will be developed to cater to industrial clients such as the<br />

glass company.<br />

PASA’s actions with regard to gas are in support of the Liquefied<br />

Natural Gas Independent Power Producer Procurement Programme<br />

(LNG IPPPP), which is part of the broader programme of the DMRE<br />

which encourages private investment in renewable energy, namely<br />

the Renewable Energy Independent Power Producer Procurement<br />

Programme (REIPPPP). The total allocated to gas-to-power in the<br />

national power plan is 3 726MW, of which 3 000MW is for LNG.<br />

Offshore progress<br />

In support of PASA’s stated goal to move beyond exploration<br />

to development and production, TotalEnergies has submitted<br />

an application to Petroleum Agency South Africa to convert its<br />

exploration right into a production right.<br />

The TotalEnergies-led consortium, after making world-class<br />

discoveries off South Africa’s southern coast off Mossel Bay in the<br />

Outeniqua Basin, has now made the decision to proceed to the<br />

next phase, which could have enormous implications for the local,<br />

regional and national economy.<br />

The exploratory drilling campaign employed 195 South<br />

Africans with specialist skills but the potential spinoff is enormous<br />

for the Western Cape and South Africa, if the find leads to drilling<br />

and commercialisation.<br />

PASA has noted the significance of international oil companies<br />

committing to exploration off South Africa’s coast. More<br />

exploration will guarantee that interest is maintained.<br />

The next phase of the project, a gas-market development<br />

period, is not the same as an immediate decision to start building<br />

pipelines and decks, but it is a step along the way. The Luiperd<br />

and Brulpadda discoveries were made in the Block 11B/12B areas.<br />

The joint venture has decided to give up a northern portion of<br />

its right, reducing the proposed area to be worked to 12 000km²,<br />

whereas the exploration right extended to more than 18 000km².<br />

TotalEnergies’ joint venture partners in Block 11B/12B include<br />

QatarEnergy and Canadian Natural Resources.<br />

If the process moves further along to the point where<br />

TotalEnergies obtains all the environmental permits it needs and<br />

starts to develop the resource, some estimates suggest that gas<br />

could begin to flow by 2026.<br />

PASA plays an important role in developing South Africa’s<br />

gas market by attracting qualified and competent companies to<br />

explore for gas, as in the case of TotalEnergies and its partners.<br />

Another major focus is increasing the inclusion of historicallydisadvantaged<br />

South Africans in the upstream industry. In<br />

support of this goal, PASA focuses on educational projects that<br />

promote Maths, Science and Technology, including exhibitions,<br />

career presentations, three-year internships for South African<br />

graduates and a contribution to University of Fort Hare for a<br />

Geological Chair.<br />

Onshore exploration rights have been granted by PASA in several parts of the<br />

country. The agency is determined to see that the next phases, development and<br />

production, are reached. Credit: Shutterstock<br />

petroleumagencysa.com Petroleum Agency SA @sa_petroleum Petroleum Agency of South Africa @petroleumagency


RAIL FREIGHT<br />

Transnet digitises freight services<br />

Huawei’s all-optical backbone network for railways<br />

has been introduced in South Africa.<br />

network had reached the end of its lifecycle, unable to support Transnet’s<br />

production and operations. On top of that, operating the obsolete SDH<br />

network was not efficient and integration with newer technologies<br />

was troublesome, slowing down the company’s digitalisation initiatives<br />

and business expansion plan.<br />

In response, Huawei deployed the all-optical backbone network<br />

solution for railways, building an independent large-capacity wavelength<br />

division multiplexing (WDM) transmission network that meets Transnet’s<br />

business and production-security requirements.<br />

Transnet, South Africa’s state-owned transportation<br />

company that manages South Africa’s rails, ports and<br />

pipelines, has developed a digital strategy to reposition<br />

its freight transportation system and improve its<br />

competitiveness.<br />

Transnet, one of the country’s biggest state-owned enterprises,<br />

is responsible for building, managing and operating South Africa’s<br />

rail infrastructure. It plays a crucial role in the country’s sustainable<br />

and stable economic development. As South Africa’s largest<br />

freight logistics operator, Transnet has committed to building a<br />

globally-competitive freight system.<br />

The entity’s digital strategy is founded on the use of innovative<br />

information and communications technologies to improve the<br />

connectivity, capacity and bandwidth of South Africa’s rail,<br />

port and pipeline networks. Transnet also aims to improve its<br />

performance and capacity using real-time data. This means that<br />

a modern and expanded network is key for Transnet.<br />

Transnet has been working with Huawei to build an upgradable<br />

and easy-to-maintain transmission backbone network featuring<br />

high bandwidth and reliability. The network enables the realtime<br />

and efficient transmission of a massive amount of business<br />

data, supporting emerging services and solidifying Transnet’s<br />

digital strategy.<br />

All-optical backbone network solution<br />

Transnet manages more than 30 000km of rails and its rail<br />

infrastructure accounts for 80% of all rail infrastructure in Africa.<br />

In addition, Transnet has 114 backbone nodes and numerous<br />

optical cable lines across South Africa. This gives the company an<br />

advantage when it comes to bandwidth operations.<br />

However, the existing synchronous digital hierarchy (SDH)<br />

network had many limitations. The SDH 2.5G/10G backbone<br />

Credit: Huawei<br />

Stability and scalability<br />

The project used next-generation intelligent and simplified OptiX OSN<br />

9800 series products. These intelligent, large-capacity MS-OTN products<br />

integrate optical and packet functions, providing the transmission<br />

capacity of 100G and beyond. They feature high reliability, low latency<br />

and deterministic quality, and support end-to-end native hard pipe<br />

(NHP) networks from the access layer to the transport layer. The system<br />

can now centrally carry Transnet’s different businesses at multiple layers<br />

and interfaces, ensuring independent and secure operations.<br />

To enhance the stability and scalability of the operation network,<br />

Transnet adopted Huawei’s dense WDM (DWDM) technology that<br />

supports a single wavelength capacity of at least 100 Gbit/s. With<br />

it, Transnet has upgraded its 100G network and provides customers<br />

nationwide with larger capacity, faster speed and more redundant<br />

bandwidth connections.<br />

Huawei’s all-optical backbone network solution for railways delivers<br />

the much-needed network capacity to support Transnet’s digital<br />

transformation and cloudification. Transnet uses the upgraded network<br />

to ensure reliable and high-bandwidth network connections for its<br />

rail production business. At the same time, it offers other customers<br />

bandwidth operation services, such as bandwidth leasing. This helps<br />

Transnet diversify its revenue sources. Huawei’s all-optical backbone<br />

network solution for railways responds to a wide range of common<br />

challenges. These include insufficient optical fibre resources, large<br />

bandwidth requirements, long transmission distance, complex service<br />

types and high requirements on network capacity and security.<br />

The solution assures efficient production and allows customers to<br />

create value-added services. In addition, Transnet has optimised its<br />

costs in terms of network upgrade, capacity expansion, deployment,<br />

device operations and maintenance and service operations.<br />

Huawei’s all-optical backbone network solution for railways features<br />

high reliability, high security and low latency. It has helped Transnet<br />

improve its transport capacity, support operations, improve operational<br />

efficiency and ensure production business security. This helps Transnet<br />

successfully deploy its digital strategy along with digitising South<br />

Africa’s freight transportation services.<br />

48 | www.opportunityonline.co.za


RAIL OPERATIONS<br />

Bombela Operating Company<br />

Bombela Operating Company is the operator<br />

and maintainer of the Gautrain System.<br />

As an integrated multimodal transport operator we are<br />

experts not only within the rail environment, but we<br />

also operate buses, midibuses and stations efficiently,<br />

with our key performance indicators rating over 90%<br />

over the past 10 years.<br />

Every day we innovate for more sustainable and smarter cities<br />

by designing, operating and maintaining long-distance and shortdistance<br />

transport networks that serve the wellbeing of our travellers.<br />

We do this with passion and determination. We are a proudly South<br />

African company, co-owned by local company SPG and International<br />

Group, RATP Dev, which operates and maintains urban and intercity<br />

transportation systems.<br />

Our vision<br />

To be the preferred operator and maintainer of the Gautrain<br />

systems now and beyond with world-class customer satisfaction<br />

and safety performance.<br />

www.bombelaop.com<br />

Our mission<br />

Moving our customers daily by means of trains, buses and midibuses in a<br />

safe and environmentally-responsible manner.<br />

Consistently meeting and exceeding our contractual obligations.<br />

Positively impacting communities around our operations.<br />

Engagement<br />

Bombela Operating Company continuously engages (through forums like<br />

Africa Rail) on industry topics such as: improving networks, handling challenges<br />

and requirements in a healthy and robust integrated multimodal system;<br />

relying on data to offer a seamless passenger experience, actionable data for<br />

railway operators.<br />

Accolades<br />

• Recognised by TopCo Media as one of the top empowered companies<br />

for 2023 for transformational leadership in South Africa, as well as a top<br />

gender-empowered company.<br />

• Bombela Operating Company won the African Transport Operator of the<br />

Year Award at Africa Rail 2017, an annual event bringing together the<br />

major players in Africa's transportation sector.<br />

High standards deliver success<br />

Nthabiseng Kubheka is the CEO of Bombela Operating Company and Country Director at RATP Dev.<br />

Nthabiseng Kubheka is a sought-after and well-respected Executive Leader with a proven track record of managing world-class energy projects,<br />

business management and improving team performance. With well over 24 years in a variety of industry roles, Nthabiseng is experienced and<br />

knowledgeable. She has a strong background in the energy sector and is currently at the helm of Africa's most efficient rapid-rail operator and<br />

maintainer, Bombela Operating Company. Her niche is in leading multidisciplinary teams in the services and construction operations and she is<br />

known to be a ground-breaker. Integrity, inclusion and diversity are at the centre of her leadership style. She has achieved success through her<br />

high standards of corporate governance, being results driven, people development and high performance.<br />

www.opportunityonline.co.za | 49


SMART MOBILITY<br />

Smart Mobility solutions<br />

A seamless integration of transport systems and operations.<br />

The Council for Scientific and Industrial Research (CSIR) leader of the Transport Infrastructure<br />

Management research group, Khangwelo Muronga, positions the role of his research team’s<br />

findings to enable South Africa to migrate to swifter, more efficient Smart Mobility.<br />

Smart transportation refers to a strategy that integrates<br />

contemporary technologies into transportation<br />

infrastructures. These tools for improving mobility include<br />

cloud computing, wireless communication, locationbased<br />

services, computer vision and others.<br />

Depending on the subject of interest and the area of<br />

operations, the term "smart mobility" might mean many<br />

things. The supply of mobility of goods and people through<br />

an intelligent transport system and mobility networks, including<br />

the use of environmentally friendly gadgets, is a straightforward<br />

concept in the context of transportation.<br />

Smart mobility is the daily utilisation of numerous interconnected<br />

technological components and transportation infrastructure. These<br />

include the use of gasoline and electric vehicles as well as nonmotorised<br />

mobility and transportation systems like car-sharing and<br />

ride-sharing programmes and on-demand ride-sharing services. In<br />

50 | www.opportunityonline.co.za


SMART MOBILITY<br />

a broad sense, additional forms of transportation such as bicycles, scooters,<br />

autonomous cars and trains (rail transport) are included in the smart-mobility<br />

transport ecosystem. This is augmented by dedicated lanes for specific modes<br />

on the infrastructure design.<br />

Transport infrastructure<br />

Almost everyone uses roads and bridges on a regular basis, making them the<br />

most significant transportation medium in emerging nations like South Africa.<br />

In addition to being built for the benefit of those who use them, roads are<br />

crucial for boosting economic development and raising people's standards of<br />

living. Roads provide access for people to marketplaces, workplaces, hospitals,<br />

clinics, educational facilities, sports venues and holiday destinations. The CSIR<br />

has been providing smart-mobility solutions to assist with road infrastructure<br />

management. Among these solutions are:<br />

• The Struman bridge and structures solution<br />

• The maintenance-reporting solution<br />

System by Struman<br />

The CSIR created the Struman system as a tool to help authorities analyse the<br />

information gathered from structure inspections. A certified structure inspector<br />

who visits the places of interest can conduct the inspections physically, or it can<br />

be done by sending a drone to the locations to record video and take pictures<br />

of the structure. The skilled inspector can utilise these subsequently to examine<br />

the state of the constructions.<br />

The method allows government agencies to cut expenditures on timeconsuming<br />

and specialised services and also lets them know which structures<br />

need care and which ones just need periodic upkeep.<br />

Maintaining records<br />

The Gauteng Department of Roads and Transport's road maintenance reporting<br />

system was created at the request of the MEC for Roads, Transport and<br />

Infrastructure, the Honourable Jacob Mamabolo. The CSIR created a solution<br />

for reporting on normal road maintenance and construction that enables the<br />

maintenance teams to provide real-time updates on their daily activity.<br />

The solution was created with CMore, an input-reporting platform created<br />

by the CSIR.<br />

PotHoleFixGP<br />

The CSIR also created the PotholeFixGP application, which can be downloaded<br />

from the appropriate mobile app stores to supplement this solution. It was<br />

designed to function on Apple and Android smartphones. The approach makes<br />

it possible for the general public to report potholes on the road system. After<br />

reviewing the complaints, the appropriate maintenance crews will fill in any<br />

potholes that need filling.<br />

The pothole app developed with the Gauteng<br />

Provincial Government.<br />

About the CSIR<br />

The Council for Scientific and Industrial Research, commonly known as the CSIR, is a world-class African research and development organisation established<br />

through an Act of Parliament in 1945. The CSIR undertakes directed, multidisciplinary research and technological innovation that contributes to the improved<br />

quality of life of South Africans.<br />

www.opportunityonline.co.za | 51


SHIPPING<br />

Online platform offers seamless<br />

transport solutions<br />

What once was a tedious process has become a smooth communication process via<br />

the Zipi platform, explains Land and Sea Shipping Sales Director, Dirushen Pillay.<br />

to cargo being exported through emerging East African ports. These<br />

solutions are working and, in some cases, even cheaper than South Africa.<br />

Please explain how your Express delivery solutions can help a mine<br />

to run efficiently. What do you routinely deliver?<br />

We have a web and mobile-software solution called Zipi that allows<br />

customers to put their firm’s cargo out into the transport market. All<br />

fleet owners that have been approved on our platform will provide<br />

their rates to the customer through the platform. All key features stay<br />

within the software, so that we create a seamless communication tool for<br />

customers and transporters. Some of these features are Pricing, Bookings,<br />

Electronic Documentation and Tracking. We changed a tedious process<br />

into a smoother online solution that will benefit companies globally for<br />

all their transport needs within Sub-Saharan Africa.<br />

Dirushen Pillay, Sales Director<br />

How has your company responded to the challenges<br />

presented by Covid-19 and the Russian invasion of Ukraine?<br />

Through 2022, we saw a massive spike in prices in all modes of<br />

transport which was the result of limited vessels and aeroplanes<br />

being available, as well as fuel price increases. While the Russian/<br />

Ukraine war has been going on, South African cargo continued<br />

to ship to Far East as well as European countries. As a supplychain-management<br />

company, we converted a lot of cargo from<br />

container ships to chartered breakbulk ships to ensure customer<br />

delivery. Urgent cargo was sent via airfreight.<br />

How are you tackling unreliable energy supply in South<br />

Africa, especially with regard to the functioning of rail<br />

and ports?<br />

Energy supply did not cause rail and port issues as much as other<br />

issues such as strikes and the rise of deteriorating infrastructure<br />

nationwide. We had to convert a lot of our rail volumes back onto<br />

road. Road haul can’t compare to the benefits of rail, but South<br />

Africa has a wide network of transporters and we have strategic<br />

partnerships with many of them. They run great operations<br />

which allows the market to shift very quickly when rail drops. This<br />

unfortunately does have cost implications because rail, for all its<br />

problems, is still cheaper.<br />

Regarding ports, there have been many upsets in KwaZulu-Natal.<br />

Many companies that are geographically close to Durban and<br />

Richards Bay have no choice but to ride the wave. However, with<br />

companies that are not located so near there is increasingly a shift<br />

What materials do you have experience in handling from “pit to port”?<br />

Our company has been handling various mining materials for over 15<br />

years. We handle a range of products such as copper, chrome, coal, iron<br />

ore and manganese. A lot of African mines are landlocked. Our value to<br />

the market is that we tailor-make a cost-effective solution through our<br />

professional network of partners. These routes run through the East,<br />

South and West Coasts of Africa. Our solutions consist of road, rail, port<br />

or warehouse handling up to Free on Board, and then we call in ships<br />

to transport the product globally.<br />

At the destination countries we have our agent offices that unpack<br />

and deliver to the customers’ processing plants. Due to popular demand<br />

our airfreight desk frequently exports mineral samples to customers.<br />

Land and Sea Shipping offers the market a One Stop Shipping Solution.<br />

What sort of weekly reports are you able to offer clients?<br />

We have a dedicated operations team that tracks the handling and<br />

movement of cargo every step of the way. These are a blend between<br />

Inventory Reports at each warehouse or port and Status Reports for all<br />

cargo moving on road, rail, air or sea. Such reports are highly effective as<br />

customers are able to monitor cargo frequently and plan their operational,<br />

financial and customer expectations. Our philosophy is that customers<br />

may work with us digitally but they will always have a team member ready<br />

to assist at their request. Customer service is a key focal point.<br />

Is coping with abnormal loads often associated with the mining<br />

industry part of your offering?<br />

We have moved many abnormal loads. As an international shipping<br />

agent, we have a diverse skillset that allows multiple-product<br />

movement globally, no matter the size. In cases such as abnormal<br />

loads, we plan routes and modes of transporter months before the<br />

cargo is even booked.<br />

52 | www.opportunityonline.co.za


BUSINESS TRAVEL<br />

Business travel industry<br />

trends unpacked<br />

Marc Wachsberger, CEO of The Capital Hotels and Apartments, argues that<br />

adapting to new trends will allow travellers and companies to continue to get<br />

value for money.<br />

The Capital Pearls in Umhlanga has seven meeting rooms.<br />

South Africa has eased its final lockdown restrictions,<br />

allowing virtual meetings to take place in person and<br />

creating new opportunities for business travel to return to<br />

pre-pandemic levels. While this news is a source of relief<br />

for the travel industry, it could come at a cost for travellers.<br />

According to a 2023 Global Business Travel Forecast report, the<br />

cost of business travel, from hotels to airfares, will rise in the course<br />

of the year. The report highlights the growing demand for face-toface<br />

business interactions and other factors, such as geopolitical<br />

uncertainties, inflationary pressures and labour shortages as the<br />

contributing factors.<br />

Hotels, like any other profit-making organisation, set their prices<br />

and rates based on supply and demand. In other words, when the<br />

need for rooms is high and the availability of rooms is low, room rates<br />

will go up.<br />

As much as these increased rates may act as a deterrent to eager<br />

travellers, the industry requires their support now more than ever.<br />

Few industries were hit as hard by the pandemic as the hospitality<br />

industry, and the sector is still battling to maintain a stable bottom<br />

line. More importantly, if the pandemic showed us anything, it was<br />

that the hotel industry and being able to facilitate face-to-face<br />

interactions are a critical part of helping businesses thrive.<br />

54 | www.opportunityonline.co.za


BUSINESS TRAVEL<br />

_________________<br />

The rising cost of air travel and accommodation will likely see<br />

organisations and visitors having to pinch pennies by bundling visits<br />

to multiple clients or holding several events over a single trip.<br />

________________<br />

While business travellers may occasionally have to pay higher<br />

room rates at certain hotels during specific times of the year, there<br />

are ways for travellers and corporate clients to get the most value for<br />

their money when booking their next stay.<br />

More value<br />

Business travel will look very different in the coming years. The rising<br />

cost of air travel and accommodation will likely see organisations and<br />

visitors having to pinch pennies by bundling visits to multiple clients<br />

or holding several events over a single trip.<br />

One way to offset the extra outlay is by joining a loyalty<br />

programme like The Capital’s La Famiglia. In the past, visitors could<br />

opt into a fixed-price deal over a set contract period. These static<br />

rates meant that clients would be protected from price fluctuations<br />

when an influx of retail clients would push prices up. Now, by joining<br />

La Famiglia, business and leisure travellers will get further discounts<br />

on their static room rates and be able to take advantage of dynamic<br />

room rates (rates that ebb and flow according to demand) should the<br />

rooms they want be cheaper than the contracted amount.<br />

These cost-saving measures and flexible and remote work<br />

arrangements are driving the adoption of ’bleisure’ travel (a<br />

portmanteau of business and leisure travel in which tourists do<br />

both in a single trip) as the new modus operandi. As a result,<br />

the global bleisure tourism market is estimated to reach nearly<br />

$497.5-billion in 2023, with demand increasing to a total market<br />

value of $2 967.1-billion in 2032.<br />

Bleisure travel offers an alternative solution to the rising cost of<br />

business travel because people can partially cover their trip’s travel<br />

and accommodation costs by extending it into a quick getaway with<br />

family and loved ones.<br />

More options<br />

In addition to adopting new trends, businesses can explore new<br />

corporate travel policies to keep up with the shifting travel industry.<br />

For example, companies can reduce employees’ travel costs by offering<br />

staff a booking process that provides more flight and accommodation<br />

options for better availability, preference and rate options.<br />

Technology now allows companies to adopt a more dynamic<br />

travel policy that can adjust the travel policy based on the available<br />

options at the time of booking. This will give business travellers more<br />

flexibility while complying with company policies.<br />

Although the hotel industry was primarily driven by a demand<br />

for leisure travel in 2021, this trend will shift to accommodate more<br />

business travellers and offer specially developed packages for hybrid<br />

and remote workers.<br />

Hotels are amenity-rich by nature, offering workers access to ondemand<br />

services, fitness centres, on-site cafés, fast Internet and more.<br />

The industry is already seeing this shift, where hotels are becoming a<br />

significant part of the hybrid working culture and a new acronym has<br />

come into being, WFH (work from hotel).<br />

Business travel is clawing its way back to normal after a challenging<br />

couple of years. However, hotel rates will continue to rise to meet this<br />

growing demand, and organisations and employees must adapt to this<br />

new environment.<br />

Marc Wachsberger, CEO, The Capital Hotels and Apartments<br />

www.opportunityonline.co.za | 55


EMPLOYABLE SKILLS<br />

South Africa's top five<br />

most employable skills<br />

Melissa Van Aswegen, Operations, ETQA Manager at the Skills Development<br />

Corporation, highlights the skills most in demand in the country and notes that the<br />

SDC offers businesses a chance to leverage these skills from their existing workforce.<br />

One needs to be mindful of the impact of the lockdown, which has<br />

caused both lulls and booms in the demand for particular skills. While<br />

certain skills may feature well now, they may not be considered ”evergreen”<br />

on a longer timeframe and vice versa.<br />

THE MOST EMPLOYABLE SKILLS IN SOUTH AFRICA<br />

Information Technology<br />

South Africa is renowned for its sporadic adoption of innovative technology.<br />

Even now, in the midst of the Fourth Industrial Revolution, we lag behind<br />

the rest of the world in this area.<br />

Employable skills (or the lack thereof) in this industry are no exception<br />

– of all the skills in demand in 2022, IT-related specialisations rank the<br />

highest. Applicants in this sector are spoiled for choice, with staffing<br />

shortages prevalent across a broad range of IT specialisations, from<br />

physical IT support to software development and even peripheral<br />

functions such as specialised project management in the software<br />

development sector.<br />

Jobs in line with this area of specialty include:<br />

• programme and software development<br />

• IT infrastructure management<br />

• IT analytics, design, and architecture<br />

• web design<br />

The Skills Development Corporation (SDC) has been<br />

investigating the most in-demand jobs in South Africa.<br />

Detailed research has produced an interesting set of<br />

results that points the way to where potential jobseekers<br />

should be looking to hone their skills. Wessel<br />

Botha, Managing Director of SDC Wealth Management and<br />

spokesperson for Skills Development Corporation comments, “The<br />

research that we did helped a lot of young people get an idea of<br />

where they should focus to forge strong career paths. One thing<br />

that came up a lot though, was, which skills individuals should focus<br />

on to make themselves more employable in the various sectors.”<br />

Anyone with an interest in or showing proficiency in information<br />

technology, computer science or broader IT-related functions, should<br />

leverage their skills in this area. Careers in this sector are considered<br />

more ”ever-green” than others mentioned on this list, given the ease<br />

with which professionals can pivot to new demands and the projected<br />

longevity of the industry itself.<br />

Mathematics, Analytics and Engineering<br />

These skills are, by far, the broadest ranging in terms of application in a<br />

career sense. In the simplest terms, multiple industries are lacking critical<br />

thinkers with an aptitude for ”seeing the world in shapes and numbers”.<br />

This poses significant opportunity for individuals who possess these skills<br />

as they are spoiled for choice when choosing a career. Jobs and industries<br />

in line with these skills include, but are not limited to:<br />

• actuarial science<br />

• finance and insurance<br />

56 | www.opportunityonline.co.za


EMPLOYABLE SKILLS<br />

If the idea of being stuck behind a desk is scary for some people,<br />

then here is some good news. Skills related to careers in athletics<br />

are among the top-identified skills which are lacking in South Africa.<br />

You may think that a career in athletics or sport means exclusively<br />

using your body to produce an income. However, this field, like many<br />

mentioned above, offers career opportunities to individuals of all<br />

kinds (including desk jobs). These are some of the jobs that these<br />

set of skills can be applied to:<br />

• personal training<br />

• physiotherapy<br />

• sports science<br />

• coaching<br />

Animation skills are highly sought after.<br />

Credit: Sarath P Raj on Unsplash.<br />

• engineering<br />

• city planning and site surveying<br />

• data science and analytics<br />

• architecture<br />

Much like those hoping to pursue a career in IT, individuals who<br />

show an aptitude in this area should place focus on the trends<br />

created by the 4IR to further bolster their earning potential and the<br />

longevity of their careers.<br />

Creative and Artistic<br />

“Moving from the left side of the brain to the right, creatives are in<br />

equally high demand as those mentioned above,” says Wessel.<br />

Once again, skills in this area can be applied to a broad range<br />

of industries, dependent on the individual’s preference or skill set.<br />

Interestingly, a dire need has been identified for individuals in the<br />

2D and 3D animation fields. Potential jobs and industries in line with<br />

these skills include:<br />

• creative director<br />

• 2D and 3D animation<br />

• copywriting<br />

• interior design<br />

If someone has an aptitude for the arts, whether in written<br />

form, graphic form or across the artistic spectrum, those skills are<br />

in high demand.<br />

Athleticism and Sports<br />

Sports, like many other industries, boasts a large number of<br />

required skills, making it easy for individuals with a love for athletics<br />

to identify the perfect career.<br />

Management and Leadership<br />

Management is not a skill many possess, which makes it one of<br />

the most in-demand skills in South Africa today. Employers across<br />

every industry are desperately trying to identify individuals with the<br />

ability to lead their teams and businesses. These are just a handful<br />

of the jobs in this area of specialty:<br />

• sales management<br />

• project management<br />

• production management<br />

• team leader<br />

• operations management<br />

• marketing management<br />

• general management<br />

It goes without saying that managers should possess a wide skill<br />

set applicable to their industry, though the ability to lead teams puts<br />

them in an advantageous position.<br />

Business advantages<br />

The SDC offers corporate packages so that businesses can leverage<br />

these skills from their existing workforce.<br />

If individuals, students or employees would like to develop skills<br />

in some of these areas or expand their skill sets to make themselves<br />

more employable in a specific area or sector, they are invited to<br />

look at the SDC website where SETA-accredited short courses, all<br />

designed to give learners a competitive edge in the workplace, can<br />

be found.<br />

About the Skills Development Corporation<br />

The SDC is a specialist skills-development organisation that assists businesses in attaining or retaining their B-BBEE level requirements. The SDC helps clients interpret<br />

and implement legislative codes through skills development and training solutions. The SDC is committed to the ethos of "We are the difference" by its consistent skills<br />

development efforts that continue to enrich lives.<br />

www.opportunityonline.co.za | 57


SMME TRENDS<br />

The outlook for small<br />

and medium businesses<br />

For SMEs, says David Morobe, Executive General Manager for Impact Investing<br />

at Business Partners Limited, current global and local economic trends demand<br />

adaptability as a key to success.<br />

As the world continues to recover from the pandemic, South<br />

Africa’s economic outlook in 2023 remains lacklustre.<br />

“For SMEs,” says David Morobe, Executive General<br />

Manager for Impact Investing at Business Partners<br />

Limited, “the best way to prepare for the year ahead is<br />

to remain agile. Business owners need to be ready for plan A but keep<br />

plan B (and C) in your pocket, so that viable alternatives remain close<br />

at hand should you need them.”<br />

In short, SMEs are urged to buckle up for a bumpy ride. And as<br />

always, stay true to the reputation of the proudly South African brand<br />

of entrepreneurship, which has proven to be decidedly resilient.<br />

Caught between recovery and recession<br />

“Experts remain conflicted about what this year will hold for South Africa,”<br />

explains Morobe. “The topic of recession seems to feature in the minds<br />

and conversations of economists, who predict that the knock-on effects of<br />

the unstable geo-political climate, tensions in Europe and loadshedding<br />

will sour South Africa’s chances of post-pandemic economic recovery.<br />

Others are cautiously optimistic, pointing to the resilience of the local<br />

mining and manufacturing sectors as indicators that South Africa will<br />

continue its modest climb upwards.”<br />

However, as experts agree, there are many moving parts – the<br />

progress of energy self-generation, the state of freight-rail infrastructure,<br />

decisions around the basic income grant and political developments<br />

in the lead-up to next year’s elections and their subsequent impact on<br />

the economy. These aspects of socioeconomic development remain<br />

in limbo as the country waits for signs that positive change is indeed<br />

on the horizon.<br />

However, Morobe points to a few certainties that will continue<br />

to make a positive impact on the SME sector in 2023 and for which<br />

entrepreneurs can reasonably prepare.<br />

These are the trends to keep an eye out for:<br />

Businesses must adopt a strategic approach to pricing.<br />

Credit: Eduardo Soares on Unsplash<br />

Rising costs will necessitate a strategic approach to pricing<br />

Where the cost of production is concerned, SMEs will face headwinds<br />

from multiple directions. Rising interest rates will bump up the cost of<br />

credit and inflation will see the cost of living continue to climb, placing<br />

increased pressure on consumer budgets. Petrol hikes will also put more<br />

strain on SMEs, having an impact on both personal and business operations.<br />

58 | www.opportunityonline.co.za


SMME TRENDS<br />

Social commerce will open doors for emerging small businesses<br />

With social media platforms like Instagram and WhatsApp making<br />

substantial investments into bolstering their e-commerce functionality,<br />

social commerce will take centre stage in the year ahead, especially<br />

for small businesses who may not have large marketing budgets.<br />

“SMEs will need to have a dedicated person (or two) for live<br />

interactions with customers via social channels or risk missing out<br />

on crucial conversations, and the chance to optimise client service<br />

and centricity. With the increasing integration of brick-and-mortar<br />

retail and various forms of online retail, taking an omni-channel<br />

approach to marketing and selling goods and services will be the<br />

best way to enhance your SME’s success in the months ahead,”<br />

concludes Morobe.<br />

Social media and keeping up with technology are vital for SMEs.<br />

Credit: Tim Douglas/Pexels<br />

“For SMEs,” says Morobe, “the key to overcoming this hurdle<br />

will lie in strategic pricing. With customers becoming more cashstrapped,<br />

the price of goods and services has to strike the perfect<br />

balance between remaining competitive in the market and<br />

maintaining a healthy level of profitability. Now might be the ideal<br />

time to enlist the help of a business strategist or pricing expert to<br />

ensure that your product or service can withstand the prevailing<br />

cost pressures.”<br />

Tech-driven disruptors could usurp the place of traditional lenders<br />

Banks and other traditional financial institutions will remain relatively<br />

risk averse as we make our way through 2023, given the challenges<br />

they face on the socioeconomic front. However, fintech disruptors,<br />

independent lenders and non-bank-risk SME financiers will continue<br />

to provide SMEs with viable funding alternatives throughout the year.<br />

Notes Morobe, “Small business owners should explore their<br />

options and weigh up the pros and cons of realities such as<br />

higher interest rates, profit-sharing transactions, negotiations that<br />

involve investors becoming part-owners and longer, more flexible<br />

financing terms.<br />

“The key is to brush up on your negotiation skills and invest time<br />

and resources into drawing up a business plan that is compelling<br />

and attractive to potential investors.”<br />

David Morobe, Executive General Manager for Impact<br />

Investing at Business Partners Limited<br />

About Business Partners Ltd.<br />

Business Partners Limited (Business Partners Ltd) is a specialist risk finance company for formal small and medium owner-managed businesses in South Africa and selected<br />

African countries. The company actively supports entrepreneurial growth by providing financing from R500 000 to R50-million, specialist sectoral knowledge, business premises<br />

and added-value services for viable small and medium businesses. Since its establishment in 1981, Business Partners Ltd has provided business finance worth over R20-billion<br />

in over 71 600 transactions facilitating over 671 000 jobs. Business Partners Ltd was named the 2019 Gold winner in the SME Bank of the Year – Africa category at the Global<br />

SME Finance Awards.<br />

Visit www.businesspartners.co.za for more information.<br />

www.opportunityonline.co.za | 59


FUNERAL SERVICES<br />

Icebolethu Group<br />

Entrepreneur Nomfundo Mcoyi, Founder and Group Chief Executive Officer of Icebolethu<br />

Group, has created a thriving group of companies through hard work and perseverance.<br />

Overcoming obstacles<br />

When Nomfundo assessed the funeral industry, she saw a huge gap in<br />

the market, especially with the service that most funeral homes offered<br />

and also in terms of products. She took that opportunity and created<br />

the best products that have grown the Icebolethu Group to what it is<br />

today. It has never been a walk in the park for her but with God on her<br />

side and a good team that understands her vision she has been able to<br />

work successfully in the industry.<br />

Foundation uplifts<br />

The Icebolethu Foundation provides aid to communities within<br />

KwaZulu-Natal and Gauteng with the aim of uplifting, empowering<br />

and facilitating change through developing sustainable solutions<br />

for the youth and the elderly. The foundation has “adopted” 50 girls<br />

between the ages of 13 and 21 to mentor for five years. The programme<br />

is called RHODA Girls which stands for Resilience, Honour, Outstanding,<br />

Dedication and Authentic. The girls attend courses, camps and<br />

mentorship programmes and are also assisted financially with school<br />

and tertiary fees, transport and school stationery.<br />

Nomfundo Mcoyi, Founder and Group Chief Executive Officer of Icebolethu Group.<br />

While the core business of Icebolethu Group is<br />

funeral services and burials, several companies<br />

Nomfundo Mcoyi under the group’s umbrella cater to various<br />

aspects of the market. PROFILE<br />

These companies include Icebolethu<br />

Funerals UK, Icebolethu Catering, Icebolethu Security, Icebolethu<br />

Tombstones, Icebolethu Properties, Icebolethu Group Academy<br />

and Icebolethu Memorials.<br />

The Group also has more than 100 customer service branches,<br />

two call centres, a fleet centre and administration offices in<br />

KwaZulu-Natal and Gauteng.<br />

Entrepreneurial journey<br />

Having earned a National Diploma in Education, Nomfundo<br />

worked as a teacher until 2009 when she decided to follow<br />

her dream of becoming an entrepreneur. Throughout her<br />

entrepreneurial journey, Nomfundo Mcoyi has won numerous<br />

awards including the Lioness Award in 2018 by Women of African<br />

and the Global Impact for Business Services and Community<br />

Development by Global African Awards in 2021.<br />

Hammarsdale in KwaZulu-Natal is where the business dream<br />

began. Nomfundo was inspired by the need for a reputable<br />

funeral-service provider, especially in black communities.<br />

Nomfundo is a remarkable, passionate, hardworking leader who<br />

is making her mark in business and communities while creating<br />

jobs and, most importantly, fulfilling God's purpose.<br />

A selection of awards<br />

Global Impact in Business Services and Community Development, Global African Awards, 2021.<br />

Standard Bank KZN Top Business Women, Standard Bank, 2021.<br />

Business Leader of the Year 2019, Sebenza Women Awards, 2019.<br />

Recognition Award, Women for Africa, 2018.<br />

Wenze Kahle Ethekwini Municipality Park, Recreation and Culture Unit, 2018.<br />

Medium Business Entrepreneur of the year, EOY Entrepreneur of the Year, 2017.<br />

Entrepreneur of Change “Uphaphe Ligwalagwala”, 2017, Mzansi Business Forum, 2017.<br />

Sanlam/Business Partners Medium-sized Business Entrepreneur of the Year, 2017.<br />

Best Female Owned Business Award in South Africa, South Africa Premier Business Awards, 2016.<br />

Funeral Business of the Year in the Financial Sector, South Africa Premier Practitioners<br />

Association Year, 2016.<br />

Mayor's Awards for Excellence Wealth and Job Creation, eThekwini Municipality, 2015.<br />

Boards and affiliations<br />

Nomfundo is the current KwaZulu-Natal Chairperson of the South Africa<br />

Funeral Practitioners Association (SAFPA). She also sits on the Board of<br />

the Services SETA and is a shareholder of Scribante Labour Consultants<br />

and Blacksuits.<br />

Contact details<br />

Telephone: + 27 31 208 9102<br />

Email: nomfundomcoyi@gmail.com and<br />

nomfundo.mcoyi@icebolethu.co.za<br />

Website: www.nomfundomcoyi.co.za<br />

Website: www.icebolethugroup.co.za<br />

60 | www.opportunityonline.co.za


strive to thrive<br />

Towards a<br />

Brighter<br />

Future<br />

The provision of holistic<br />

solutions for sustainable<br />

energy Finance and<br />

Insurance.<br />

Project<br />

Development<br />

Services for<br />

• Solar PV<br />

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contact@hedmenns.com<br />

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