The 4th SACCI Annual Convention takes place in mid-October and is appropriately themed, “South African Business – A Vision for Growth”.

The principles behind the programme are based on South Africa as an emerging market characterised by a two-tier economic system, straddling the identities of both developing and developed nations of the world.

It is now almost old news that South Africa, for the most part, has emerged from the recent global economic crisis in a better state than was initially envisaged.

We will, however, for some time be dodging the negative consequences experienced by other nations and the knock-on effect of the crisis.

Domestically, we have challenged the world and shown our strengths and weaknesses – a new democracy – a determined nation tackling ‘personal issues’ to become a stronger player. The challenges related to job creation, corporate governance, service delivery, corruption and crime, education and skills training, work ethic, productivity and national economic and trade policies collectively impact on our economic growth.

We obviously have a significant place in the global economy, but just like a business, the country needs to find its own niche in this difficult marketplace.

This programme is designed to encourage thoughtful responses to some of the domestic challenges facing South Africa and engage business in a think tank with one goal: A Vision for Growth.

If you belong to a SACCI-affiliated Chamber or association, we offer a special rate to participate in the convention.

Register online at www.sacciconvention.org.za to avoid disappointment or contact Cheryl Peters on 021 689 7881 or e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

For sponsorship opportunities, contact Daniel Bloch on 021 689 7881 or e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

We look forward to seeing you at the SACCI Annual Convention.

Engaging with business to influence policy direction

SACCI has recently strengthened its programme of engagement with business to obtain the views of members on issues of importance to them. Several key issues have been earmarked by SACCI to be addressed and include issues such as land reform, the exchange rate, the operation of the Competition Commission, nationalisation and the implications for business relating to the Taxation Laws Amendment Bill.

The Chamber has made or is in the process of making significant input into several legislative documents that require comment, including:

• Taxation Laws Amendment Bill.

• Integrated Environmental Management Guideline Series 5: Companion to the National Environmental Management Act (NEMA) Environmental Impact Assessment (EIA) Regulations – The document addresses time frames within which EIAs must take place. Business welcomes the approach, as the unduly long time that it has taken the department in the past to adjudicate reports has hampered the implementation of projects.

• National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008): Draft National Waste Management Strategy – The Department of Environmental Affairs has invited comments on the Draft National Waste Management Strategy, and SACCI will convene a working group to consider a response once the document is received.

• Protection of Information Bill – SACCI is preparing comments on the Protection of Information Bill that aims to regulate the way in which state information may be protected and to promote transparency and accountability in governance, while recognising that state information may be protected from disclosure in order to safeguard the national interest of the Republic. The principles on which the Bill is based are supported, and it is necessary to ensure that the detail supports them.

• Reserve Bank Amendment Bill – SACCI submitted comment on the Reserve Bank Amendment Bill in which it supported the independence of the Bank. This comment was based on the view that the Bank’s independence was essential if potential negative consequences relating to foreign direct investment in South Africa were to be avoided.

• Energy conservation – The Department of Trade and Industry has issued draft regulations that require the incorporation of the efficient use of energy in new buildings, including the mandatory installation of alternative sources of water heating such as solar panels. This is one of the medium-term recommendations resulting from the Electricity Colloquium that took place in February 2010 and which formed part of SACCI’s electricity strategy.

• Labour protest action: electricity tariff increases granted to Eskom by the National Energy Regulator of South Africa (Nersa) – SACCI was one of three business organisations against which labour aimed protest action as a result of the tariff increases granted to Eskom by Nersa in February 2010. The Congress of South African Trade Unions lodged a Section 77 Notice with the National Economic Development and Labour Council (Nedlac), in which it tabled a number of demands aimed at business, Nersa, Eskom and several government departments. SACCI prepared a comprehensive response to the demands made on all the respondents, as it was of the view that each demand had a business connotation. Initial negotiations at Nedlac averted protest action being undertaken during the Fifa Soccer World Cup, and subsequent negotiations appear to have defused the demands to the extent that the focus has shifted to remedies to protect the poor from the increases. The parties continue to seek ways and means of resolving the problem.

SACCI is proud to announce the appointment of Peggy Drodskie as business convenor of the Nedlac Trade and Industry Chamber. This appointment has provided SACCI with greater exposure to Nedlac and to the deliberations that take place in the Trade and Industry Chamber.

Issues that are currently being debated at Nedlac include:

• The Expropriation Bill – The Bill will be tabled at the Trade and Industry Chamber. SACCI will prepare comments for submission to Nedlac once it is received.

• Reduction of the Minimum Tolerance of Flat Carrier Bags in Relation to the Plastic Bag Memorandum of Agreement: In terms of the Agreement, two objectives had to be achieved, namely:

– The development of standards regarding the minimum percentage of recyclate content of garbage bags and bin liners.

– The reduction of the initial tolerance of 20% on a 30 micron bag to 10% within five years through recapitalisation, investment and innovation in the industry thereby increasing the thickness from 24 micron to 27 micron. A Nedlac Task Team will submit recommendations to the Department. Members who wish to participate in the Task Team are requested to contact SACCI.

• IPAP 2 Task Team – At the Nedlac Strategic Session that took place in April, it was agreed that a work programme be drafted for the implementation of the Industrial Policy Action Plan (IPAP) 2. SACCI is represented on the task team that will prepare the action plan.

Trade exhibitions

SACCI joined hundreds of other business entities at the recently held Southern African International Trade Exhibition at the Gallagher Convention Centre in July.

The SACCI stand had an impressive share of visitors who were curious about the organisation and who wanted to know more about Chambers and their role in assisting business.

Staff members were on hand to promote the Chamber movement and in many cases assist with general business enquiries.

Information seekers were given an overview of the International Chamber of Commerce (ICC) and its various offerings, including that of the ATA Carnet – a system administered by SACCI via the ICC SA.

At least 35 countries were represented by 337 exhibitors, many as part of trade delegations from participating nations or regions. Under the auspices of embassies and trade federations, exhibitors presented a rich variety of products reflecting key exports of these countries.

All exhibitors were participating with the express purpose of setting up two-way trade opportunities with local agents, importers, exporters, wholesalers and distributors.

SACCI and SARS, working together to promote a speedier service

In preparations of the Soccer World Cup, South African Customs (SARS) expected a bigger than normal influx of equipment into the country, including those for temporary import,

The ATA Carnet is an international customs facilitation document that allows for temporarily import of goods, for up to one year, without payment of normally applicable duties and taxes.

According to the ICC, in 2008 about 165 500 Carnets were issued internationally. They covered goods valued at almost US$20 billion.

SACCI is the sole issuing and guaranteeing association for the ATA Carnet System in South Africa and the Southern African Customs Union region. The ATA Carnet system is recognised in approximately 75 countries internationally.

In preparation for the additional influx of goods into the country, SACCI was requested by SARS to facilitate a number of workshops on the ATA Carnet system to nominated customs officials around the country.

The training session, conducted by Samuel Mothibeli from SACCI, was done via videoconference from the SARS Pretoria head office to the various customs offices in Johannesburg, Cape Town, Durban and Port Elizabeth.

SARS Customs has subsequently confirmed that services delivered during the World Cup period were successfully implemented with the assistance of the ATA Carnet document, which played a central role in effective and hassle-free declaration of goods.

Contact Glennalee or Mothibeli on 011 446 3800 for more information.

Kimberley – Networking can bring great rewards

The Northern Cape Chamber of Commerce and Industry (Nocci) Kimberley has celebrated Women’s Month with two spectacular functions. The first was a Women’s Day event on 3 August sponsored by Old Mutual, with guests Natasha Sutherland-Hofmeyr and Henja Schaap, and Miss India Worldwide 2009 Nikkitasha Marhawa shared words of inspiration and motivation.

Sutherland-Hofmeyr has recently registered the Bigheart Foundation which aims to empower women all over South Africa. She wants to reach out to women who want to transform their lives and influence a positive difference in their communities.

Her first book, titled Bittersweet – Confessions of a freshly single, was released in June 2009 to critical acclaim and has broken South African records by going into a reprint in its first month.

Sutherland-Hofmeyr is currently touring South Africa as a motivational speaker, using her own personal journey of transformation as a basis to address town halls and corporate audiences alike across South Africa.

Her inspirational and humorous presentation provides a hands-on, step-by-step approach to help her audiences identify issues – whether in their personal capacity or at work – and to seek to resolve these in a holistic manner.

The second event was the introduction of a pilot project to bring together small and corporate businesses. The “On Tour” project allows Chamber formal business members and entrepreneurs a peek into the operations of ‘corporate’ entities.

GWK Limited – the first participating host – is a sustainable agricultural business that delivers an excellent service to agricultural in the Northern Cape. Its production area includes 90 000 hectares of irrigation farming alongside the Vaal, Orange, Riet and Harts rivers.

The company is responsible for the handling of all wine production in the central Northern Cape region, under the Landzicht trademark. It is further involved in the collective marketing of a unique range of products including maize, wheat, oilseeds, cotton, dried beans, olives, wine; a meat industry through abattoir businesses; and livestock auctions.

Sharon Steyn, chief executive officer of Nocci Kimberley, is positive that the project will develop into a popular vehicle for knowledge transfer within the local business community, and she encourages larger corporations to participate in the On Tour project.

Nocci Kimberley can be contacted on 053 831 1081.

Border-Kei – Chris Hani

Enterprise Development Project

In 2009 the Border-Kei Chamber of Business in Queenstown applied for funding from Thina Sinako for the Chris Hani Enterprise Propeller (CHEP). This project, with an estimated cost of around R1.6 million and a duration time of two years, has been approved and commenced this year.

CHEP is a joint initiative for the Border-Kei Chamber of Business and the Chris Hani District Municipality. The aim is to support the networking and strengthening of local enterprises to compete for a share of the municipal procurement spend within the district, thereby increasing the amount of money spent within the Chris Hani District.

The overall objective of CHEP is to promote the more effective leveraging of municipal procurement in the Chris Hani District for local economic development (LED) by favourably positioning local firms and increasing their capacity for successfully competing in the tender process. This will result in increasing the volume of money spent by the government and corporate companies in the district.

In the Chris Hani District, more than R2.5 billion is spent annually on goods and services, with approximately 80% of this money leaving the district. This is due to the fact that local suppliers possibly do not have the relevant skills or are inadequately capacitated to apply for tenders.

As such, it is found that the government as well as corporate companies or established businesses will look outside the District, as the services or products required can be sourced faster as well as at a cheaper price. This does not contribute positively to the growth of local enterprises or to the economic development of the region.

There is therefore a strong need for a dynamic LED intervention, led by a partnership between the public and private sector, which will assist in addressing the greatest constraint to small, medium and micro enterprises (SMMEs) – being able to enter into the main economic arena.

The specific objective is to establish an enterprise propeller of excellence that will support emerging and established enterprises in the Chris Hani District, allowing them to compete more effectively for municipal tenders by providing them with quality business advice, information and mentoring services, as well as facilitating more effective linkages between them.

It is believed that many SMMEs will visit the CHEP every quarter (over the funded period of 24 months), while it is expected that approximately 50 SMMEs will make use of the services offered.

Once the project becomes entrenched in the Chris Hani region, it is expected that this number will increase. Therefore, over a 24-month period, it is expected that at least 400 SMMEs will make use of the services offered by the project.

Though it is difficult to forecast the possible increase in the ratio of money spent in the region, one expects an increase of at least 10%. This will be a catalyst to increase exponentially the circulation of money in the region. This ‘multiplier effect’ will lead to significantly higher volumes of internal money in the long run.

The final beneficiaries include the members of the Border-Kei Chamber of Business, the Chris Hani District Municipality and the eight local municipalities that operate in the district, – and, ultimately, the broader Chris Hani community.

Border-Kei Chamber of Business members will benefit from a stronger business environment and a broader and more competitive base of local suppliers and purchasers.

If the project is properly constructed and managed, the local municipalities and the district municipality will benefit from best practice in terms of enabling small and emerging firms to compete for and deliver effective public tenders. This will be translated into better services and goods.

Increased taxes will be collected as a result of increased business activity, thereby strengthening the revenue base for effective service delivery by
the government.

A stronger local economy will create additional enterprise and investment opportunities, which will create further employment and further increase the amount of money in local circulation.

North West African Chamber of Commerce – assisting with diamond benefication project

The Mafikeng International Diamond Centre (MIDC), in its endeavours to establish a diamond beneficiation factory at the Mafikeng International Airport Industrial Development Zone, recently requested the assistance of the North West African Chamber of Commerce (NWACC) in overcoming one of its greatest challenges, which is the access to rough diamonds.

Even though this project has been a work in progress for the past nine years, the MIDC has since been in contact with various experts in the industry and, with the support of the NWACC and the provincial Department of Economic Development and Tourism, will soon realise the goal of operating an internationally renowned facility.

President of the NWACC Lefty Mogorosi and the chairperson of the Working Committee Dr Kitch Semuli were commissioned to go to Botswana to negotiate the supply of rough diamonds from mining company, Debswana. The successful intervention has secured an agreement to be signed by officials in August 2010.

The MIDC’s managing director Cedric Thompson has been invited to Antwerp, Belgium for a two-day workshop and discussions on beneficiation efforts in southern Africa and South Africa, particularly in Mafikeng.

While in Botswana, the Chamber delegation met with the acting South Africa High Commissioner in Botswana Mathipu Caroline Malema to discuss two-way trade opportunities and skills transfer.

The NWACC prides itself on creating new opportunities and partnerships for its members, both within South Africa and its neighbouring states.

MasterCard Index reveals an increase in socio-economic equality between women and men in South Africa

The results of the latest MasterCard Worldwide Index of Women’s Advancement saw South Africa’s index score increase by almost six points, from 87.96 to 93.5 between 2009 and 2010.

This, the Index suggests, signifies increasing equality between men and women as measured according to four key indicators, which are meant to reflect how close or far women in South Africa are to achieving socio-economic parity with their male counterparts.

All four of the indicators showed increased equality between women and men since 2009.

The indicators, which measure the socio-economic level of women in relation to men, are broken down as follows:

• Two of the indicators are based on source data from national statistics bureaux, and show the ratio of female to male participation in the labour force and tertiary education.

• Two of the indicators are based on survey data, and measure the ratio of female-to-male respondent perceptions of whether they hold managerial positions at work and earn above median income.
These two subjective factors are a gauge of how empowered and valuable respondents feel at work.

A score below 100 indicates gender inequality in favour of males while a score above 100 indicates inequality in favour of women. A score of 100 indicates equality between the sexes.

The Index and its accompanying reports do not represent MasterCard’s financial performance.

The indicator relating to “Labour Force Participation” increased from 75.45 in 2009 to 75.85; the indicator relating to the “Incidence of Management Positions” increased 11 points to 75.04; and the indicator relating to “Above Median Income” increased nine points from 82.22 to 91.12 in the same time frame.

“While these three scores indicate that women still feel an overall sense of inequality to their male counterparts, it does show that more women are participating in the labour force, perceiving themselves as holding managerial positions and earning above-median incomes compared to the previous year,” says Anthony West, senior vice president and general manager Africa: MasterCard Worldwide.

Delegates at the

MasterCard presentation

On the other side of the scale, the indicator that measures “Tertiary education enrolment rates” showed that a higher proportion of women are enrolling for tertiary education than men (131.98), with the number of women per 100 men growing consistently since 2007.

“The index gains over the past year are encouraging and wipe out the deterioration seen in 2009,” says Erika van der Merwe, independent economist. “Nevertheless, female labour force participation rates are still lower than those for men.

“Perhaps more troubling is that noticeably fewer women than men report that they hold managerial positions. These findings come in spite of women’s relatively higher participation in university-level education.”

Looking at each indicator in more detail, the indicator measuring above-median income shows that following a dip in 2009, women have become optimistic again about their income levels from a score of 104.16 in 2008, decreasing drastically to 82.22 in 2009, and now having increased by nine points to a current score of 91.12 in 2010.

Following a similar significant decline of more than eight points between 2007 and 2009, from 72.71 to 64.27, the incidence of women who perceived themselves to be in managerial positions increased by 11 points in 2010 to 75.04.

Labour force participation rates have increased marginally for women between 2009 and 2010, from 75.45 to 75.85. As a percentage of the working-age population, men experienced a marginal decline in employment, from 59.6% to 59.5%.

“While the relative movements in women and men’s perceptions of income levels are toward greater parity, the more notable movement over the past year has been the trends in perceptions of both sexes,” says Van der Merwe. “From a recent peak in 2008, when almost half of respondents felt they were earning more than the median income level, this has now dropped to below a fifth.

“Among the four sub-indices, the component which measures the incidence of women in managerial positions relative to men reflected the greatest improvement over the past year. However, at about three-quarters of the equality level, this low index value signifies considerable inequality in favour of men.

“It also has the lowest value among the four component indices,” she adds.

“Similarly, the index which measures relative labour force participation rates is at just over three-quarters of the equality level.”

“As is the case in many other economies in the developing world, South African women face a number of institutional and socio-economic obstacles in gaining access to the labour market,” says Van der Merwe.

Considerably more women than men are enrolled at tertiary institutions. This indicator is the only one of the four that shows inequality in favour of women.

“This encouraging trend has been in place since 2007, when the survey was initiated,” she says.

“With time, women’s relative determination to advance their education levels will translate into a greater measure of economic empowerment.”

Looking further afield at Africa, additional markets including Kenya, Nigeria and Morocco were included in the survey for the first time – making it possible to start drawing comparisons between South Africa, these countries and the region.

The overall index score for the Africa region was 92.36, signifying women across Africa are feeling just slightly less empowered compared to men.

South Africa was marginally ahead of the overall regional score by one point, and scored well above the regional average figures for both labour force participation (62.66) and tertiary education enrolment (105.33).

However, in terms of both incidences of management positions and above-median income, South Africa scored lower than the regional figures of 102.04 and 99.41 respectively.

Out of the four African markets surveyed, Kenya experienced the highest index score of 97.34, indicating that women in Kenya feel almost equal to men in terms of socio-economic parity. In particular, Kenya is the only market surveyed in the African region where a significantly higher proportion of women perceive they earn above-median income in comparison to men (140.11).

However, in contrast to South Africa and Nigeria, where a higher proportion of women are enrolling in tertiary education than men, the tertiary education enrolment rate in Kenya is a very low 59.27.

Morocco experienced the lowest index score out of the African markets surveyed, with a score of 77.61 – suggesting that women in Morocco experience significant inequality compared to men. Labour force participation, tertiary education enrolment and above-median income scored 31.23, 95.46 and 74.83 respectively.

Interestingly, however, of the women who do participate in the labour force in Morocco, more women than men perceive themselves to be in management positions.

Out of all the African markets surveyed, Morocco scored the highest index in this regard (108.92).

The overall index score for Nigeria was 85.22, indicating inequality in favour of men. While women in Nigeria are enrolling in tertiary education and perceive themselves to be in management positions at greater numbers in comparison to men, 103.29 and 102.22 respectively, the labour force participation rate and above-median income indicators scored 57.59 and 77.58, considerably lower than the African region average.

“South Africa’s performance relative to its regional peers is mixed. While its overall index is marginally above that for the region, its poor performance in promoting women to managerial positions remains a concern,” Van der Merwe says.

Looking further afield at the Asia/Pacific region, where 14 markets were surveyed, it was found that the pan-regional index score is up slightly from last year, coming in at 85.57 in 2010 from 84.47 in 2009.

The score for labour force participation is holding at 71 women per 100 men while tertiary education enrollment rate (106 in 2009 to 107 in 2010) has increased from last year. There has, however, been a slight decline in the indicator that sees women in a managerial role – from 86 in 2009 to 84 this year.

Seven of the 14 Asia/Pacific markets witnessed a rise in their scores – India, Indonesia, South Korea, Malaysia, New Zealand, Philippines and Taiwan.

In contrast, the pan-regional index score across the Middle East has decreased from 89.74 in 2009 to 80.72 this year, with five of the six Middle East and Levant markets seeing a decrease in their scores.

“MasterCard has devoted extensive resources to developing a deep understanding of women across the APMEA [Asia Pacific, Middle East and Africa] region. The findings from this MasterCard Worldwide Index of Women’s Advancement highlight that there is still much to be done in terms of improving women’s self-perceptions,” West concluded.

MasterCard is committed to empowering women through initiatives such as its U21 Global Scholarship for Women in Travel and Tourism, which was launched in 2006 to provide working women professionals a programme to develop their leadership skills and realise their full potential in the area of travel and tourism.

MasterCard regularly releases consumer insights and trend research on women. These can be accessed at its online repository of proprietary research at www.masterintelligence.com.