Updates from SACCI

The South African Chamber of Commerce & Industry (SACCI) shares its Chamber news, highlights issues surrounding small, medium and micro enterprises (SMMEs), and gives a breakdown of the 2011 State of the Nation Address.

Carbon taxes

SACCI provided comments on the proposed carbon taxes as presented by the National Treasury discussion paper titled, “Reducing Greenhouse Gas Emissions: The Carbon Tax Option”.

SACCI’s comments can be summarised as follows:

1. There is significant concern regarding the implications of the proposed carbon tax as discussed in the National Treasury discussion paper.

2. From the outset, it is important to state that SACCI fully supports the attempt by the government to address the threat of climate change, and it would like to stress the importance of policies to address these issues.

3. However, although the paper provides a discussion on the theoretical basis of imposing a carbon tax, the main critique of the paper centres on the lack of analysis of the current regulatory environment, the lack of co-ordination with other government policies i.e. the ‘isolated’ design of the proposed tax and the lack of analysis on the significant impact on many high employing firms.

4. In addition, the paper overwhelmingly gives the impression that simplicity is preferred without taking into account the possible impact on productivity. This is very serious, indeed, as South Africa cannot put potentially thousands of jobs on the line through the imposition of unacceptable economic costs. This may even result in a decline in long-term political support as the unintended economic consequences become evident.

5. The paper fails to take into account or provide sufficient analysis of the energy market and the various rigidities that exist. This is a fundamental flaw, as the energy sector can arguably not be seen as a market, but as a strongly regulated environment – significantly impacting on the efficiency of a tax to influence behaviour as free market forces lack. As an example, the discussion paper argues for the principle that the tax should be uniformly applied and that all taxpayers should face the same rate. The paper does not, however, address any of the current market rigidities imposed by the regulatory regime in the energy industry. These rigidities clearly prevent the tax incidence occurring on all those responsible for emissions in a uniform manner, and distort the potential application of this principle.

6. SACCI welcomes the emphasis placed upon the potentially negative impact of a carbon tax on the poor in South Africa. The paper, however, remains silent on some of the negative distributional impacts that may arise from the interaction between a carbon tax and price regulation in the energy markets. For instance, the potential impact on local government finances and hence service delivery of an increased wholesale electricity price (resulting from carbon tax) that cannot be fully passed through to the electricity consumer. A more thorough regulatory and market impact assessment is required by Treasury, and has since been agreed to with Business Unity South Africa.

7. Lastly, it is of concern that the case studies used mainly reflect the situation in developed countries. This includes the discussion on the tax base and ignores South Africa’s total tax burden as well as the structures in the economy.

Ministerial determination no. 1:

Small business sector

Following an invitation from the Minister of Labour Nelisiwe Oliphant to make submissions to the Employment Conditions Commission on an intention to make a ministerial determination on the small business sector, SACCI canvassed the views of its members and prepared the following submission:

South Africa faces a tremendous challenge to address the unemployment problem that exists. To quote from the 2011 Budget Review, “Out of a population of nearly 50 million, 13.1 million South Africans are employed. Only two out of five persons of working age (41%) have jobs, compared with 65% in Brazil, 71% in China and 55% in India.

“To match the emerging markets average of 56%, South Africa needs to employ 18 million people – five million more than are employed today. To keep pace with the number of people entering the labour market, about nine million jobs need to be created over the next 10 years.”

This is a significant task, but one in which we have no other option than to succeed.

The consensus within organised business is clear that the main priorities or challenges facing the South African economy currently include poverty reduction, job creation and improvements in the health and education systems. Business is committed not only to addressing these issues, but also to collaborating with the social partners – government and labour – to achieve these goals, particularly employment creation.

It is imperative that these issues be approached in a partnership. In short, the only way we can move forward is to act as a team – and by putting “South Africa First”.

The New Growth Path places “decent work” at the centre of economic policy. The need to encourage foreign direct investment (FDI) and job creation makes it imperative that the legislative regime in South Africa supports these objectives. However, South Africa is still recovering from the recent global economic crisis, during which comparatively more jobs were lost than in other developing countries.

Employment recovery is very hesitant. Official statistics put the unemployment level at around 25%.

In such a climate, it is imperative that the legislative environment supports business.

In sectors such as finance and business process outsourcing, jobs were created largely due to atypical employment and outsourcing. Recent proposed amendments to labour legislation restrict flexibility, which will restrict rather than enhance job creation.

The government, to its credit, has recently and on a number of occasions (for example, in the Budget Review 2011) acknowledged that sustainable jobs can only be created by an active role of the private sector, particularly small business.

Central to this debate should be to lower the cost of doing business.

Addressing the unemployment problem in South Africa is difficult, but not impossible. Within the country, the necessary entrepreneurial ambition and spirit does exist to generate the growth and development required to address the challenges facing South Africa.

A good example is street hawkers. These small businesses are the poor’s answer to the welfare gap; they are a symptom, as it were, of the underlying initiative, entrepreneurial spirit and will to create something better. All they need, is the environment to compete with other workers, get access to finance and opportunities to acquire the necessary skills to grow their businesses. It is therefore imperative that the most efficient job creators in the South African economy are given the opportunity to grow and expand.

With this in mind, it is SACCI’s view that the determination under review – pertaining to small business and dealing with overtime, averaging of hours worked and family responsibility leave – should be undertaken with the above in mind to enable a ‘job-creating’ environment by lowering the costs associated with doing business, particularly for small firms.

Lowering the costs of doing business for small enterprises will not only serve as a catalyst for job creation (many in the unskilled sector), but will also serve – through the lowering of barriers to entry – to entice informal firms into the formal economy, broadening the tax base.

Reduction of obstacles to enterprise growth

It is important to recognise that wealth originates from business or enterprise. The profit incentive is crucial in order to generate wealth. Social assistance (although necessary to address immediate imbalances) is a means to an end, not an end in itself.

Current policies have one fatal misalignment: Everyone (business, labour and the government) agrees that we will only create the necessary employment opportunities through sustained growth; as such, the objective is to expand gross domestic product.

This could, however, be misleading, as not all parts of GDP are wealth-creating i.e. expanding the parts of GDP that do not add value will not generate the results we desire.

Further, it appears that South African policy is focused on poverty alleviation and not poverty reduction, something highlighted by Minister of Finance Pravin Gordhan in his recent 2011 Budget Speech.

Poverty alleviation not only postpones the problem, but is also unsustainable. The answer to this problem is to shift capital from the government’s consumption side to the investment side. This will result in poverty reduction and lead to the creation of sustainable employment.

It is not possible to regulate or tax the country to prosperity; international experience has shown this.

The answer lies in the ease (and cost) of doing business. If we lower the cost of doing business for the large corporate sector in the country, we will undoubtedly create thousands of jobs; however, if we lower the cost of doing business for households and smaller enterprises (SMMEs), we will arguably create millions of jobs.

Regulatory failure creates market failures, and market failures add to the cost of doing business and creating jobs.

The inefficiencies in the public sector (the former Companies and Intellectual Property Registration Office, etc.) create numerous obstacles for business. Labour legislation only prevents the unemployed from competing with the employed. Regulation should be based on complaint and investigation, not on process.

On the other hand, business should be careful of regulatory protection; rather, internal competitiveness should be the aim. This, however, is partly dependent on the lowering of red tape and unnecessary costs to business.

The obstacles facing enterprises and which inhibit growth are numerous. They include red tape, the lack of skills and low productivity of the workforce.

The small and medium enterprise (SME) sector, one that has been identified as most important for job creation, faces additional problems, not the least being access to finance.

Both public and private sectors have a role to play in job creation. In general, international experience has proven that businesses without externalities in the private sector sphere are likely to be more efficient and better at job creation.

The private sector, however, needs a good public sector to provide education, healthcare and infrastructure investments.

Furthermore, the private sector requires a stable macro-economy, which the government is able to provide.

There is a concern that multiple state units (National Treasury, the National Planning Commission, the departments of Trade and Industry and Economic Development) appear to be developing policy frameworks (Medium-Term Strategic Framework, the Economic Development Strategic Plan and Industrial Policy Action Plan 2) that do not necessarily align with each other or with the New Growth Path.

Furthermore, these entities seem to be using different consultative mechanisms (advisory bodies and commissions).

Engaging with the New Growth Path should entail a single point of entry for social partners into the government and a coherent link with other economic policy-making entities and processes.

Generally, there needs to be better co-ordination and coherence in policy.

Six proposals

SACCI is of the opinion that there are a number of areas where there is ‘low-hanging fruit’, enabling us to make large strides in the effort to eradicate unemployment and poverty. These are briefly discussed below.

1. Skills shortage

It is clear that the government needs to restructure the sector education and training authorities (Setas). Their inability to spend allocated budgets is costing the country billions in potential skills that are not developed as a result of inefficient management.

Setas have not achieved their mandate and must have their funding more effectively channelled. The training they offer must be more closely aligned with the needs of business.

Further education and training (FET) colleges can play an important role in the training of artisans. To address the artisans, FET colleges should provide courses for school-leavers interested in technical careers and who do not wish to or who do not have the necessary academic qualifications to attend university.

2. Research and development

There is a need for technology enterprise centres as well as innovation, creativity and enterprise centres in each region with industrial development zones. These should be developed and co-ordinated to advance SMMEs in particular.

3. Labour legislation

SACCI argues that a softening of excessive wage demands has to take place in order to keep South African production competitive. Wage levels must be agreed with reasonable expectations. Importantly, labour productivity MUST be aligned to wage demands.

A relaxation in the rigidity and the introduction of greater flexibility into labour legislation will facilitate job creation by the private sector. Companies take legislative requirements into account when deciding on employment opportunities.

One negative outcome of restrictive legislation, accompanied by onerous administration and difficulties in terminating the employment of unsuitable and/or unproductive workers, is that fewer employment opportunities become available.

4. BBBEE

Fifteen years after the introduction of black economic empowerment, broad-based BEE has not delivered the anticipated outcomes. SACCI would welcome a review of the policy.

Such a review should be underpinned by a critical reconsideration of the following:

• The timetable for the achievement of the objectives;

• The degree to which the current and expected levels of skills development support workplaces that are representative of the demographics of the country;

• The contribution that BBBEE makes to a rigid versus a flexible labour market at a time when job creation is a priority; and

• The degree to which public sector procurement procedures enhance SME development and job creation.

5. Regulatory environment

Creating incentives and assistance to comply with the very costly and complicated Consumer Protection Act and the Labelling Regulations will not only assist SMMEs to preserve jobs through the lowering of costs, but also lower the entry requirements for new firms.

6. Service delivery/

infrastructure development

SACCI suggests that municipal services, where the necessary skills are lacking, be privatised. This will not only ensure continuity in service delivery, but could also be used to facilitate a transfer of skills back into local government and to develop black-owned businesses. Concessional government funding and contracts could be used to achieve these objectives.

SACCI proposes that the R880-billion capital infrastructure fund be rolled out. It must be specifically structured so that the poorest regions and provinces get priority consideration.

In conclusion, given that the most efficient way to eradicate poverty and unemployment is through a vibrant private sector, the approach suggested by SACCI is to follow an industrial, trade and labour policy that creates an environment conducive to the creation of ‘new’ manufacturing companies, while lowering the costs to existing businesses.

To create more of these companies, the aim of particularly industrial and trade policies must not only be narrowly focused and strictly aimed at certain sectors, but also be broad enough to ensure the required structures are in place for trade and business.

Lawrence and Edwards (2008) argue that exports will be stimulated through further trade liberalisation, but trade policy is not the only weapon in the government’s arsenal in the nurturing of manufacturing with natural comparative advantages. Public goods such as infrastructural development, capital expenditure etc. are required to facilitate the creation of industrial companies that can compete globally.

External bottlenecks that private business is unable to solve – such as inefficient railways and harbours, poor education and skills development etc. – must be removed.

Competitiveness could be further enhanced by a sound regulatory and competition environment that allows firms to respond effectively to new opportunities and changing circumstances, such as will arise after trade reforms or technological advancement occur. This is necessary to promote efficiency and enhance export capacity of individual sectors.

Flexible and competitive markets (including labour markets) foster efficiency and innovation. Competitive markets decrease input costs for downstream consumers and producers, increasing the outward competitiveness of these sectors. This is the key to the creation of sustainable employment and the eradication of poverty – crucial to the future prosperity of our nation.

The capacity of business to employ is currently curtailed by the capacity of businesses to sustain itself. Nonetheless, business does not favour policy interventions and support programmes to the extent that a ‘dependency culture’ is fostered.

It is imperative that business remains viable and self-sustaining if it is to contend ably with the exceptional economic challenges ahead.

The rights of business under the Constitution

Why are the rights of business under the Constitution considered topical today?

The disproportionate enforcement and protection of rights of business as provided for under the South African Constitution is strongly evidenced within the labour market where the rights of businesses as juristic persons fail to achieve any meaningful measure when weighed against the rights and protections enjoyed by labour.

Given the role that business must rightfully play within the economy in relation to job creation, the disproportionate attention to and protection of the rights of business become particularly alarming as obstacles to business pursuing a broad-based economic role.

In the context of a national job creation target of five million jobs over 10 years, the private sector is expected to play an enormous role – not only overcoming job losses of the past, but also in creating new jobs within the economy.

On emerging from the economic crisis, business finds its commitment to job creation on a greater scale hindered by repeated instances of mass labour protest action characterised by damage to property, intimidation and violence, the rising cost of labour and the lack of corresponding improvements in productivity and the skills challenge that is underpinned by an education system in need of repair.

Over the last two years, the labour environment was characterised by intense strike activity. For the entire year of 2009, 1.5 million man-hours were lost to labour protest action. In only the first half of 2010, 1.25 million man-hours were lost to labour protest action.

Over the two-year period, business suffered damage to property and denial of access to business premises as a consequence of protest activity.

Strikes and socio-economic protests resulted in damage to business and the economy, which often went far beyond the effects of the legitimate withdrawal of labour from any one specific or targeted employer. Damage included delays in transport of workers and commodities, random destruction of property, loss of business due to the location of pickets, and intimidation of non-strikers, customers and members of the public.

In the context of the above, concerns continue to rise about whether the rights of businesses as juristic persons are being sufficiently protected from harmful actions or inappropriate behaviour, when the right to protest activity is exercised.

Such rights are clearly identifiable in the Constitution:

• Sub-section 7(1) affirms the values of human dignity, equality and freedom;

• Sub-section 8(4) states that a juristic person is entitled to the rights in the Bill of Rights;

• Section 9 provides that everyone is equal before the law and that equality includes the full and equal enjoyment of all rights and freedoms;

• Section 12 protects all persons from violence;

• Section 21 affords everyone freedom of movement; and

• Section 23 affords everyone the right to fair labour practices.

In these times, business is forced to question why more active measures are not being taken to enforce these rights for all.

When streets were obstructed and littered and property damaged, security services were often slow to react to protect public and business property. Employers contend that the nature of strike misconduct experienced was often to the extent that it required swift and robust reaction from the police and other state agencies in order to halt destructive or obstructive behaviour.

Employers allege that police officials felt disempowered and/or unobligated by the law to act against disorderly behaviour of picketers – this despite the supposed existence of general laws relating to orderly conduct and assembly.

While business is supportive of the right of labour to strike, improper behaviour resulting in damage to property and denial of access to businesses is unacceptable. Section 69 of the Labour Relations Act allows strike picketing for the purpose of peaceful demonstrations organised by trade unions for their members.

Although there are laws prohibiting violence and damage to property, employers complain that these laws did not, in practice, protect their businesses against violent and destructive picketing.

Item 1(3) of the Code of Good Practice on Picketing specifically states that the Code is intended as a guide to picketers, employers and members of the public who may be affected by the picket.

The fact that this Code is merely a guide is highly significant, and this significance is sharpened by the fact that the Code itself states it does not impose any legal obligations, and that the failure to observe the Code does not render anyone liable in any proceedings.

SACCI is concerned about the perceived differential enforcement of constitutional rights in the context of the beneficiaries of those rights. As a business lobby, it responds to each major dispute on a case-by-case basis, but SACCI remains concerned about the overall course charted in enforcing the rights of juristic persons and the lack of such enforcement.

Presentation by Nazir Alli, chief executive officer: South African National Roads Agency Ltd (Sanral)

On 8 April 2011, Alli addressed SACCI members on the toll system that is to be introduced in Gauteng in the near future.

In his opening remarks, he referred to the infrastructure challenges that faced South Africa. He said that roads should not be taken for granted. Attention was paid to problems such as potholes only when they arose.

Economists had placed a value of R76 per hour on time and the government had been told to use this in project determinations.

Alli stated that the government was not as efficient as it used to be. He said it was possible to criticise, but this had to be reasonable, as parts of the government were efficient.

Part of the traffic problems being experienced resulted from rapid unplanned urbanisation. This was the cause of major concerns such as the growth of informal settlements.

In addition, there was an international debate that looked at how good access was within 20-minute walking distance. It was thus necessary to have a relook at city planning.

South Africa was still building townships on the peripheries of towns and cities, and associated transport modes with social class.

A legacy concerning transport modes existed and it seemed that there was a desire to retain an unsustainable fabric of livelihoods. As an example, the feeder buses for the Gautrain ran empty while being subsidised by all taxpayers. Alli thus asked where the equity was.

He advised that the decision on the Gauteng toll road system had been taken in 2002 and that it was part of the larger vision for the province. He said it had not been possible to predict the outcome, but that it was possible to decide on the preferred future.

He reminded members that the decisions to build the Gautrain and to introduce toll roads had been planned at the same time and the same politicians who were now objecting had participated in the decisions.

Alli said that intermodal connections were required for the Gautrain and that the current furore would force changes.

He then advised that Sanral was an agent of the government and was responsible for certain rural and other roads, including toll roads. He issued an invitation to members to visit Sanral to observe its operations.

Alli said that South Africa had the second best road network in the world, with 606 000 kilometres of roads. Sanral was responsible for 16 170km, 19% of which were tolled.

The government was the primary source of funding for roads, and this was limited.

Levies on fuel were paid to the fiscus and included provision for other needs such as the Road Accident Fund, hence the need for toll roads. Finance for toll roads was accessed finance from capital markets, with nothing coming from the fiscus.

He continued that while there was a responsibility on Gauteng to contribute to the building of the South African economy, congestion in the province had reached the stage where it was uneconomical and stifling development.

Alli said Sanral could not guarantee that there would be no congestion on the toll roads, but that collision clearance and basic medical assistance would be provided free of charge. The private sector had been requested to provide these services, but had refused the offer.

He said that in cases where death or serious injury occurred, the police would still have to investigate what would be regarded as a crime scene.

Alli then referred to a report on the economic impact of congestion, which had been undertaken in 2004, in which it had been estimated that in 2001 the current improvements would provide R9 billion in benefits.

He referred to government policy that regarded the paying of tolls as a user-pay principle as contained in the 1995/1996 White Paper on Transport. He hoped the National Planning Commission would reopen the debate.

Alli furthermore referred to an AA report on the cost of time spent in traffic, which was published in August 2007 and that pointed to the need for substantial improvements in the road infrastructure.

A further study was undertaken by the Council for Scientific and Industrial Research for the Imperial Group, on the cost of road maintenance and repairs.

Alli advised that Sanral annually surveyed roads that carried heavy traffic and every two years those that carried lower volumes.

Sanral had no repair or maintenance backlog. It had performance agreements with its contractors, whereby potholes were fixed within 48 hours of reporting, failing which penalties were applied. Alli emphasised that with the lack of maintenance, the cost of repairs increased over time.

Turning to the application of tolls, he advised that the cost of tolls was a tax-deductable expense for business, and he therefore questioned where the additional business cost was.

In addition to frequent-user discounts, Sanral was in negotiations on volume discounts, but despite this, there was still a general dissatisfaction with the government as a whole. Taxis and buses would pay 25% of the tariff. Frequent-user discounts would also apply.

Alli said it had been estimated that the tolls would increase consumer price index in Gauteng by 0.04%; and if business had concerns, it should discuss them with the South African Revenue Service and National Treasury.

He then pointed out that Sanral was responsible for infrastructure, not transport per se. It had proposed to the Department of Transport that an investigation or a pilot study into the need for feeder services for the Gautrain be undertaken.

Alli suggested that in the absence of a government study, business should undertake the study.

He said that in 2005, it had been announced the toll tariff would be 50c/km. Taking inflation into consideration, 66c/km was no more.

Alli advised that it was the intention to introduce dedicated lanes for vehicles with high occupancies, encouraging pool sharing that occurred worldwide.

He explained that the cost of construction was high in comparison with international standards, as the budget had had to include the protection of workers.

Substantial overtime had been worked between Friday night and Sunday night when the roads were less busy. Two lanes had been open at all times, with the exception of very few instances.

In addition, all the roads had been opened for the 2010 Fifa Soccer World Cup when work had been suspended.

Furthermore, the cost of borrowing had to be financed. These had all added to the overall cost of construction.

Sanral paid for overload control, which was a provincial responsibility, but it did so to protect its roads.

During construction, more than 20 000 jobs had been created. This reinforced the philosophy that the government had to invest in infrastructure improvements to facilitate the creation of jobs by the private sector.

Alli said that no matter what the eventual toll would be, money would leave South Africa. The payment to the company bore no relation to the tariff, as the company would have to be paid according to the contract entered into.

He said that while no tenders had been received from South African companies, there had been a small South African interest in some of the companies and Sanral had been reluctant to tie in one company for all toll roads. Overall, the value of imports was R500m out of R6.22bn total cost.

Alli pointed out that 99% of the jobs would be given to South Africans.

These would be quality jobs, not merely tollgate cashiers.

Money collected would be dedicated to the toll roads. The tariff had been set at a level that would provide for improvements and maintenance only, and would have to be adjusted over time according to the need for developments.

e-Tags would be distributed by retail stores Pick n Pay, Checkers and Spar, and by Engen and BP service stations. Account registration would be possible at plazas as would account payments and top-ups. The e-tag would either be linked to a financial account or be prepaid.

On policing and monitoring, Alli stated that photos would be taken to trace non-payers. The system would be linked to the Administrative Adjudication of Road Traffic Offences, with demerit points being applicable. Should payment not be made, and the vehicle stopped, officers would not accept cash payments.

In conclusion, Alli appealed to members to register for e-tags at any of the accredited outlets. He advised that a toll calculator was posted on the Sanral website; and if members experienced difficulties, Sanral would try to improve it.

Finally, the government did not want the use of the Gautrain to be higher than the cost of using a private car.

State of the Nation 2011

Following the State of the Nation Address by President Jacob Zuma in February, SACCI hosted an Executive Breakfast where delegates analysed the president’s speech.

Delegates welcomed statements that the government would implement new strategies to address corruption and to improve the education system, and that unemployment would be addressed.

However, they were disappointed that a number of issues were not covered, including:

• Programmes to support SMEs;

• The reduction of red tape for business;

• Concrete strategies to address the skills shortage;

• Land reform;

• The National Health Insurance scheme; and

• A green economy strategy taking into account that South Africa will be hosting the 17th Conference of Parties to the UN Framework Convention on Climate Change (COP 17).

A number of issues that were included in the State of the Nation Address in 2010 were repeated in 2011. These included:

• The establishment of a systems operator for electricity transmission, which will pave the way for the introduction of independent power producers in electricity generation;

• Proposals on youth employment;

• The implementation of the Crisis Framework, which was developed in response to the recent global downturn;

• The Local Government Turnaround Strategy;

• The implementation of ministerial service delivery agreements; and

• Information on progress by the Ministries in the Presidency.

All in all, it was felt that very little new was included and business was left with the feeling that the government would continue its ‘business as usual’ mode of operation.

Some SACCI Chamber events

During the past several weeks, SACCI attended a number of Chamber events and made Chamber visits, which indicate that the movement is alive and growing. These included the following:

Randburg Chamber of Commerce and Industry

Randburg Chamber of Commerce and Industry (RCCI) hosted a breakfast where members were invited to introduce their companies and products. The event generated very useful contacts for those members who attended and resulted in positive sales for several.

At another event, a new member certification and networking function with the theme: “A business system that is alive”, the RCCI urged new members to actively participate and engage in the RCCI activities to make the most of their membership. This was the message by SACCI CEO, Neren Rau.

He was invited to address the new business members at the new member certification event held in April at Hackle Brooke Conference Centre in Craighall Park.

Speaking at the event, Rau said businesses in South Africa would like to achieve greater productivity and improved skills, to contribute to job creation and acquire improved competitive ability. However, there are challenges such as widespread labour protest actions and the rigid labour market, which hamper these aspirations.

It was therefore critical for businesses to join local Chambers so that, as a collective with SACCI, the RCCI could engage labour organisations and the government on issues that are of concern to businesses.

Labour, on the other hand, would like improved financial circumstances for its members who are employed by businesses.

The government has said it would create five million jobs over 10 years, but the private sector must lead job creation to reach this target.

Rau explained that these are merely some of the challenges facing businesses in South Africa and, on their own, businesses would find it difficult to overcome them. He emphasised the importance of surrounding oneself with a business system that was alive – the RCCI.

Part of belonging to a Chamber required active participation to enhance collective advocacy and sharing of information and expertise. RCCI was a portal for businesses to offer community support and identify organisations facing similar challenges.

“Communication platforms such as member newsletters, events, surveys and networking sessions are platforms to share experiences and tap into new business opportunities,” said Rau.

Thanks to the Internet, communication has become easier, at the touch of a button; one business could now connect with several businesses locally and internationally.

South Africa had seen a growth of over 50% year-on-year Internet growth in local unique Web browsers as tracked by the Digital Media and Marketing Association, said Hilton Tarrant, production editor and business columnist at Moneyweb –an online financial news provider.

“The number of Internet users in South Africa now stands at well over six million.

“In Randburg, over 50% surveyed in the most recent [Newspaper Advertising Bureau’s] ROOTS survey said they accessed the Internet at least once a week or more often,” he added.

This number was closer to 70% when one headed further into the northern suburbs of Randburg, Tarrant said.

Asked about the Internet trends in South Africa currently, he said there was a massive adoption and usage of social media and other Internet tools to communicate.

One needed only to look at the penetration of Facebook in our local online market (nearly four million out of six million who had access to the Internet) to see evidence of this, explained Tarrant.

“The adoption of smartphones such as BlackBerry’s (over one million BlackBerry’s on Vodacom network alone) is another clear trend,” he said.

The RCCI communicates with its members and local Randburg community through e-mails, its website and Facebook and encourages its members to get onto the social media bandwagon.

RCCI’s next new member certification and networking event will be held in August. This is a not-to-be-missed event and is expected to host business experts who will share and interact with members on current business and economic trends in South Africa.

Durban Chamber of Commerce

The Durban Chamber of Commerce celebrated 155 years of service to the business community at a glittering gala dinner in April. The event was attended by more than 600 delegates from the business community, government and the diplomatic corps.

The guest speaker was well-known Valli Moosa, who held the diners spellbound with his views on environmental responsibility.

The outgoing president Clive Manci introduced his successor Thato Tsautse, the first lady to hold this prestigious Chamber office.

The new office bearers and board are:

• President: Thato Tsautse

• Deputy president: Mike Jackson

• Vice president (finance): Akash Singh

• Vice president: Tembakazi Mnyaka

• Vice president: Kwanele Gumbi

South Coast Chamber

The South Coast Chamber hosted a business breakfast where business partners opened the doors to partnerships and financial assistance to SMEs.

Middelburg Chamber

CEO Rau attended the annual gala dinner of the Middelburg Chamber where the new board and office bearers were inducted.

The Chamber is very active in the area and provides the following services:

• Mediation and arbitration: In order to avoid major disputes and litigations, it is advisable to consider resolving disputes by mediation and arbitration, rather than costly litigation. The Middelburg Chamber can assist in this area.

• Certificates of Origin: This is a printed document issued on the application of an exporter, in which an accredited Chamber of Commerce and Industry certifies the origin of goods.

• Business linkage centre: This was established in an endeavour to bridge the gap between corporate business and SMMEs that did not have access to tenders or the knowledge on how to submit tenders. The centre has extended its services to assist with other business needs, including BBBEE certificates, skills development, etc.

• Distribution of relevant information: Relevant information is distributed to members via e-mail, fax, SMS or post.

• Commissioner of Oaths: The Chamber offers the Commissioner of Oaths service free to its members.

• Foreign trade or investment enquiries: Trade and investment enquiries are channelled through the Chamber office as well as through SACCI, which has a close relationship with the Department of Trade and Industry.

• Internet services: Internet services and e-mail facilities, Web design and website hosting are available to members.

• Networking – local: Monthly networking evenings, known as the “Business Buzz”, are held to enable local business people to network and to promote their business.

• Monthly newsletter: A newsletter is published on the last Friday of each month in the Middelburg Observer and on the official website. The newspaper has a readership of 11 000.

• Project management: The Chamber offers this service to its members and the community as and when required.

• Secretarial, administration and accounting services: These services are offered to various organisations. The following organisations make use of these services:

– Rotary’s Greatest Train Race

– Middelburg Community Police Forum

– Mpumalanga Chamber of Commerce

– Busmid (Business Middelburg)

– Busmid (Pty) Ltd Secretarial and Accounting Services

– Middelburg Chamber Trust

– Cultural Heartland Regional Tourism Organisation

• Tourist Information Centre: The Centre was opened to create a positive tourism image and environment that encourages the traveller to spend more time and money in the region, without detrimentally affecting the local culture or ecology. Bookings can be made at the Centre for any accommodation in and around Middelburg, Hendrina, Witbank, Belfast and the Kruger National Park.

iLembe Chamber of Commerce, Industry and Tourism

On 2 March 2011, a powerful new business body representing the interests of business on the KwaZulu-Natal North Coast was launched.

The iLembe Chamber of Commerce, Industry and Tourism (ICCIT) executive was announced, and certificates were handed out to founding members.

The Chamber will be headed by CEO Trenley Tilbrook, while farmer and South African Sugar Association chairperson Bongani Linda will serve as president.

Speaking at the launch, Linda said the Chamber aimed to represent business in the area with one voice and would lobby local government to tackle important issues and secure the interests of business.

The Chamber represented the entire district, and planned meetings at Stanger and iSithebe in the near future.

The iLembe District spans from the southern border of Zimbali, including Ballito, to the industrial hub of Mandeni and Isithebe, plus the vibrant rural and agricultural areas of Stanger and Ndwedwe.

The Chamber is an independent, non-political, membership-driven organisation dedicated to facilitating and promoting business on the North Coast.

The iLembe Chamber is currently in discussions with prominent business partners in the area, looking at ways to enhance and improve the entrances to Ballito. Business will channel funds directly to the project, which will be facilitated and administered by the Chamber, which means funds are focused on project-based deliverables and real results.

Another project upon which the ICCIT is embarking, is a business retention and expansion initiative in partnership with Enterprise iLembe, which aims to understand the real needs of local business and then implement measurable strategies that will help retain business in the area.

This will be achieved through addressing the needs identified, and building a firm foundation for businesses to unlock the next phase of expansion

The ICCIT has been approached by another organisation to roll out a project that looks at sourcing 20 previously disadvantaged budding entrepreneurs, and putting them through a mentorship programme run by the Chamber, making use of the expertise of retired businessmen and women residing in the area. A total of R200 000 worth of sponsorship has already been committed to the initiative.

The ICCIT has received overwhelming support from business in the area.

Foundational sponsorship has helped cover key operational needs such as office space and office equipment, and allowed the establishment of the Chamber to occur in a professional way.

“It’s still early days, but we believe that business has shown its support over the past 18 months, and that through partnership and collaboration with iLembe business, we will be able to deliver on our vision to unite business and be the voice of a strong iLembe business sector,” concluded Tilbrook.

SACCI