VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber

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VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
                                                    says yes to
                                                  job creation!
    THE       AGRO-processing & MANUFACTURING I S S U E

FEATURE STORY - Page 27                              COVER STORY - Page 38-39

Agro-processing and Manufacturing sectors            Volkswagen Group South Africa commits
have a wide spectrum of companies under it.          its support to fund & develop black-owned
BKB Limited is one of these companies and            suppliers.
has proved its great service value within our

VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
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2   INFocom - edition one 2019
VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber   1
VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
2   INFocom - edition one 2019
VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
ADVERTISER’S LIST                                                                                   OUR BUSINESS CHAMBER

ABSA                                           041 390 6000
                                                                                                    CEO’s Letter                                                                              5
                                                                                                    Editor’s Letter                                                                           7
Air Products SA (Pty) Ltd                      011 570 5001
                                                                                                    Research Unit Column				                                                                  10
Algoa FM                                       041 505 9497                     How To Build A City					                                                                  13
AON South Africa (Pty) Ltd                     041 508 8600                         Latest News From Task Teams				                                                           14
Auto X (Pty) Ltd                               041 401 4000                    Annual Golf Day					                                                                      18
Bay FM                                         041 811 0555
                                                                                                    CSI 2019						                                                                            24
BDO                                            041 374 3222

T Birch & Co (Pty) Ltd                         041 363 1360                      AGRO-PROCESSING AND MANUFACTURING
Businesswomen's Association                    041 367 1104

Coega Development Corporation (Pty) Ltd        041 403 0400                       Notes From The Top					                                                                   27
Continental Tyre SA (Pty) Ltd                  041 406 5111
                                                                                                    Mohair Company Attends German Trade Fair                                                  30
                                                                                                    Masterplan for the Automotive Industry                                                    32
Dennis Collins Jewellers                       043 726 0644
                                                                                                    SME Focus					                                                                            34
Dry Ice International cc                       071 881 1440

Exporters Eastern Cape                         041 373 1122

Harambee                                       041 813 9200                    BUSINESS ADVICE COLUMNS
Howden Donkin (Pty) Ltd                        041 409 1400
                                                                                                    A view on cyber threat landscapes			                                                      41
Inkanyezi Event Organisers (Pty) Ltd           041 363 0310
                                                                                                    Breaking Barriers					                                                                    43
Isuzu                                          041 403 9111                         Employment Tax Incentives 				                                                            45
Joubert Galpin Searle                          041 397 9200                         Tax Budget Proposals				                                                                  47
AKM Foods (Pty) Ltd t/a KFC                    041 373 7880                         From Farm To Fork					                                                                    49
Khaya Engineering                              041 451 0712
                                                                                                    Is An Employer Obliged To Hold A Pre-suspension Enquiry                                   51
                                                                                                    Stop Multi-tasking					                                                                   53
KPMG                                           041 395 1500
                                                                                                    Culture Starts With Leadership			                                                         56
Mazars                                         041 501 9700

Msecure                                        041 811 8499

Nedbank Ltd                                    041 393 5800                     SPORT AND LEISURE
Nelson Mandela University                      041 504 3084
                                                                                                    Ironman Celebrates 15 Years				                                                           59
Nelson Mandela University Business School      041 504 4000
                                                                                                    Lets Get Social					                                                                      60
Oracle Media                                   082 646 3963                 Best Dressed In The Bay				                                                               62
Orion Engineered Carbons                       041 402 4100                  Connect.Empower.Inspire				                                                               67
PKF                                            041 398 5600           Exporters Eastern Cape				                                                                68
PwC                                            041 391 4400

Sovereign Food Investments Limited             041 995 1700

Stainless Accessories Eastern Cape (Pty) Ltd   041 452 3529

Transnet Freight Rail                          041 507 2042                    Awards and Recognitions				                                                               69
Vodacom                                        041 396 3148                     Business Chamber Partners				                                                             70
                                                                                                    New Members					                                                                          71
Volkswagen South Africa                        041 334 4111
                                                                                                    New Appointments					                                                                     72
Workstation                                    041 586 0258

200 Norvic Drive, KPMG House,
Greenacres, 6045 • 041 373 1122                                                                     DISCLAIMER • Registration Number: 94/08719/08                                     Infocom is published by the Nelson Mandela Bay Business Chamber. Copyright of material
                                                                                                    in Infocom is the property of the Nelson Mandela Bay Business Chamber unless otherwise
                                                                                                    attributed or indicated. The contents may, in some instances, be quoted, on condition that prior
                                                                                                    permission is obtained from the Business Chamber, and that the Business Chamber is quoted as
EDITORIAL TEAM              CONTRIBUTORS             ADVERTISING & SALES            PRINTING        the source. The views expressed in this publication are views of the authors or respondents, and
Odette Parfitt              Tham-Tham Uduojie        Welma Swanepoel                Bukani Print    not necessarily those of the Nelson Mandela Bay Business Chamber, unless specifically indicated.
Tarryn Vasi                 Jeremy Dobbin            Tham-Tham Uduojie                              While everything is done to ensure the accuracy of the information presented, no responsibility
                                                     Odette Parfitt                 DESIGN          for errors can be borne by the Nelson Mandela Bay Business Chamber. The Nelson Mandela Bay
                                                     Tarryn Vasi                    Yellow Lizard   Business Chamber is a Section 21 (not for gain) business association.

VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber
4   INFocom - edition one 2019
VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber

Dear Reader

In the research that underpins our strategic direction, the Nelson
Mandela Bay Business Chamber identified certain sectors that
have the potential to contribute massively to economic growth
in the Metro.

Since then, we have been vocal about the value of sectors that
include automotive, tourism, maritime and creative industries.

However, this edition has shifted the spotlight onto two critical
sectors about which we, as business and residents, do not speak       To this end, we have embarked on our How to Build a City series.
often enough: agro-processing and manufacturing. Though               These talks are designed to encourage frank discussions around
Nelson Mandela Bay’s agricultural industry only makes 0,3% of         the state of our Metro and what can be done to transform our
the metro’s economy, the city and its two ports are the closest       city into a thriving economy. Leaders from various sectors will
urban stop for various agricultural producers in the region. The      share their advice at these events.
province is the second largest citrus producer and the single
largest wool producer in Southern Africa.                             What sets the How to Build a City series apart is that our aim is
                                                                      not just to place experts behind a microphone; we want each
Against this backdrop, opportunities in agro-processing must be       stakeholder in this city – from business to government to civil
seized to the benefit of our local economy and the residents who      society – to participate. If we hope to build a city that offers the
depend on it.                                                         best for its residents and businesses, we need everyone’s voices
                                                                      to tell us what that city will need.
The same can be said for manufacturing. This issue focuses on
all forms of manufacturing, including the automotive industry,        The first of these events has already been hosted successfully,
and we must nurture this productive sector as a whole.                with former Rwandan government official Serge Kamuhinda as
Manufacturing accounts for a staggering 18,8% of our metro’s          speaker. (More on this can be found on page 13). May his advice
economic output and is among the largest industries in terms of       herald the beginning of a series of transformative conversations.
employment as well.                                                   As for the rest of the series and its topics, stay tuned to our
                                                                      website and social media channels.
We are all stakeholders in these crucial industries; let us step up
and work together to develop it in a sustainable way.
                                                                      NOMKHITA MONA
You can read more on how we could go about growing these              CHIEF EXECUTIVE OFFICER
clusters on page 10, but the Business Chamber has already             Nelson Mandela Bay Business Chamber
begun the work in supporting sustainable sector development.
We empower businesses in various sectors through our Exporter
Development Programme (more on this can be found on page
16). Through our Task Teams, we lobby for simpler business
process and the provision of basic infrastructure – including
reasonably priced electricity, well-maintained roads and a
reliable water supply – in order to remove the obstacles that
stunt businesses before they are even established.

Despite all our efforts, we believe there is still much more to                 Nomkhita Mona is proudly driven by VWSA
be done.

VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber

               t Nedbank we know that success in business is           resilient eco systems, protecting bio diversity and
               about partnerships, therefore, choosing the right       responsible farming practices. Essentially as a sector
           partner is critical, says John Hudson, Head,                and a country we need to do more with less while at the
     Nedbank National Agriculture.                                     same time protecting our bio diversity and looking after
                                                                       our scarce resources. The adoption of technology and
     ‘With our unique whole-view approach to business                  precision farming is assisting in meeting some of the
     banking, we immerse ourselves in your business so that            challenges that require far greater water and energy
     we understand your requirements and can provide your              efficiency as well as security of supply.

     business with the solutions you need, no matter where
     you are in the agri-sector, be it the primary producer,
                                                                                …actively participating in critical
     including wildlife, or part of the agri value chain,’
     adds Hudson.
                                                                                aspects that impact the long-term
                                                                                sustainability of the agri industry.

     ‘We put the building of lasting, value-adding                              Food, energy and water…
     relationships at the centre of everything we do. And
     that’s why your goals are our goals, and your success             As the green bank, Nedbank has been at the forefront of
     our success,’ he says.                                            financing renewable energy solutions that suit all agri
                                                                       business types whether it is to power the farmhouse and
     Hudson adds that the Nedbank approach is one of
                                                                       staff accommodation, heating poultry houses, crop
     engagement and in so doing we aim to understand your
                                                                       drying, irrigation, dairies (pasteurisation, condensation
     industry and your business, not only in formulating a
                                                                       and cleaning), horticultural hot-houses, wind tunnels,
     tailored solution but to also continually seek new and
                                                                       water pumps, livestock ventilation heating, cooling and
     innovative ways to help you manage and grow your
                                                                       humidifying, water pumps and water treatment.
     money. That means together we can develop unique
     solutions to help take your business to the next level.           Our efforts are geared towards making a tangible
                                                                       difference in the agri-sector, helping to grow the
     Nedbank is actively participating in critical aspects that
                                                                       economy and create jobs.
     impact the long-term sustainability of the agri industry.
     Food, energy and water are inter-related and given the            To enquire on how our financial expertise can help take
     scarcity of resources, an integrated approach is                  your business to the next level, why not get in touch with
     required in meeting the ever-increasing challenge of              our agricultural teams based in the Nedbank Business
     feeding the growing population                                    Banking offices around the country. Alternatively,
                                                                       contact us via email at or
     Nedbank’s investment in agri-tech company Aerobotics
     and our long-standing partnership with WWF-SA are
     examples of how we are tackling these critical issues.
     The partnership with WWF-SA focuses on creating

     see money differently
                                                                                                                                                                              SPONGE 5824

6   INFocom - edition one 2019                                    Nedbank Ltd Reg No 1951/000009/06.Authorised financial services and registered credit provider (NCRCP16).
VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber

Dear Reader

I’ve been giving a lot of thought to what it takes to build a city.

Given that the Business Chamber just recently hosted the first
event in its How to Build a City series, this is not surprising.

Our first speaker in the series was Serge Kamuhinda, who used
to be in the employ of the Rwandan government, and who
brought with him the story of his nation’s reconciliation and
economic success (you can read more about this on page 13).

I briefly visited Rwanda’s capital Kigali last year and absolutely fell   These industries are also dependent on exports for a sustainable
in love with the immense kindness of its people. I have glimpsed          income. The Business Chamber places emphasis on empowering
the way in which this nation, once torn apart by unspeakable              businesses and preparing them to export, which is the purpose
violence, has united to secure a better future.                           of our Exporter Development programme (read more about this
                                                                          on page 16).
My hope is that we, as residents of Nelson Mandela Bay, can
follow their lead – because I believe a city cannot be built              Through learning about all the Business Chamber’s initiatives, I
without the support of all its people, coming together to realise         have reached a conclusion about the necessary ingredients of
a shared vision. Though the Business Chamber is taking the lead           a thriving city. Any city poised for growth needs infrastructure,
by starting these necessary conversations, we need each of you            basic services, simplified business processes and a unified vision
to be a part of the process.                                              – but without decisive leadership, a vision remains a dream.

But, while the event series aims to improve the city and address          This is my last edition as editor of Infocom, but in my time at the
the issues that threaten sustainable business in the metro, this          Business Chamber I have become certain that our city’s vision is
edition of Infocom is aimed at celebrating successes in two               in good hands here. It has been a privilege to be a part of driving
important industries. Manufacturing in all its forms remains an           change in the Metro, and I intend to continue building this city in
integral part of the metro’s economy, while the agro-processing           whichever way I can.
industry has significant potential for growth.
                                                                          May we all become leaders on the path to progress.
On page 30, we ask BKB’s leadership about the company’s
secret to success as they celebrate 100 years of business. S4
Integration shares their innovative projects on page 32.                  ODETTE PARFITT
                                                                          MEDIA AND PUBLICATIONS OFFICER
Since automotive manufacturing forms a large part of the local
economy, we unpack the implications and goals of the South
African Automotive Masterplan on page 34.

Agro-processing, light manufacturing and the automotive
sector count among the Business Chamber’s priority sectors
for development, which is why we have also worked towards
enabling growth in these sectors. Our Head of Research unpacks
the research that will be done around these sectors and the
goals of the Research Unit on page 10.

VOLKSWAGEN says yes to job creation! Nelson Mandela Bay Business Chamber

                                 championing an enabling
                                             BUSINESS ENVIRONMENT

                                 The strategy of the Nelson Mandela Bay Business Chamber is based on the Quadruple
                                 Helix model of building relationships between academia, industry, government and civil
                                 society as the foundation of creating a competitive Nelson Mandela Bay. Along with all our
                                 partners in the city, the Business Chamber has adopted a long-term cluster development
                                 approach to promote economic growth. We are focused on the Enablers that facilitate the
                                 Ease of Doing Business in Nelson Mandela Bay.

                                                                             KEY        Methodology           Enablers        Priority Focus Area

8   INFocom - edition one 2019

                                 The Nelson Mandela Bay Business Chamber facilitates the ease of doing
                                 business through its strong action arm, consisting of eight well-established
                                task teams. The task teams have traditionally been the enablers by creating
                               an environment in which business can grow, and addressing inhibiting factors
                              impacting business.

                             The Business Chamber is driving the Quadruple Helix concept of building
                            relationships between academia, industry, government and civil society as the
                           foundation of creating a competitive Nelson Mandela Bay.

                        OUR TASK TEAMS
                      WATER TASK TEAM
                      Creating a secure supply at the correct quality level.

                    ELECTRICITY & ENERGY TASK TEAM
                   Creating an energy smart city.

                  ROADS & STORM WATER TASK TEAM
                 Addressing concerns regarding the upgrade and maintenance of
                key roads and storm water facilities in Nelson Mandela Bay.

              Improving logistics to support investment in the region.

           Ensuring strong collaboration between the Nelson Mandela Bay
           Municipality and the Business Chamber at Executive and Task
          Team level.

      Creating an enabling environment for sustainable growth of SME
      member companies in priority sectors.

    Creating an enabling environment to attract and stimulate trade
   and investment.

 Creating opportunities out of the Fourth
Industrial Revolution.

industry attracts industry
                                  HOW TO BUILD THE BAY’S AGRO-PROCESSING
                                     & LIGHT MANUFACTURING CLUSTERS
                                                        COMPILED BY JEREMY DOBBIN

     Labour-intensive agro-processing and light manufacturing have         Further to this, in the current era of increasing globalisation,
     led the economic development of many of the most successful           we are experiencing a decreasing importance of city-regions’
     cities in south and east Asia, but has not fared so well across       natural endowments and local input costs because these factors
     sub-Saharan Africa. While China’s emergence in the global             of production can easily and cheaply be sourced from around
     manufacturing market in the 1980s resulted in a broad decline         the globe. Where clustered networks of firms and institutions
     in the market share of all other regions, Africa’s decline has been   can now take advantage of their local linkages, is by driving
     longer and deeper than most.                                          innovation-focused competitiveness strategies collaboratively -
                                                                           in simple terms: working (smarter) together to compete better.
     Experience across highly successful city-regions elsewhere
     shows us that we need serious re-industrialisation and ‘structural    We need to address the extremely high cost of doing business
     transformation’ in Nelson Mandela Bay that shifts our local labour    in Nelson Mandela Bay, and the most effective method of
     force from unemployment and under-employment to higher-               identifying and confronting the binding constraints on our
     productivity activities. Light manufacturing and agro-processing      businesses is to speak and listen to them, and get their leaders
     in the Bay are generally characterised by a few medium-sized          around the same table. Any cluster development strategies
     businesses providing products to niche foreign markets, and a         should fundamentally be decentralised as much as possible; to
     small number of low-productivity firms providing low-quality          increase appropriate collaboration within the business sector,
     products to the domestic market. These smaller enterprises can        to improve accountability between business, academia, and
     only provide low-paying jobs, little in foreign exchange earnings,    government, and to foster competition - not only along an
     and few productive employment opportunities for young South           industry’s value chain, but across various spheres of government
     Africans. Encouraging the productivity and expansion of our           or education.
     SMMEs in this space has not received adequate support and
     needs to be addressed.                                                Most importantly, it is about not outsourcing the leadership of a
                                                                           single industry’s future to one specific individual or stakeholder.
     In Nelson Mandela Bay, advocacy and collaboration across the
     private business sector that encourages new investment can
     accelerate both industrial re-development and expansion of
     profitable business. “Industry attracts industry” and the impact
     of isolated successes can be multiplied, as demonstrated by
     Ethiopia’s recent foray into selling cut flowers in EU markets: a
     single pioneering firm opened the door to a profitable industry
     that now employs 50 000 workers.

     The Nelson Mandela Bay Business Chamber has adopted a
     cluster-specific trade and investment strategy to grow our local
     businesses and develop the local economy. We are breaking new
     ground here, as there has never before been a formal, long-term,
     cluster-led approach undertaken by the Business Chamber - nor
     our local government - across multiple sectors of the region’s

     But why “clusters” in priority economic sectors such as tourism,
     agro-processing, and light manufacturing? And why now?
     Well, as related firms cluster together (spatially), we find that
     their costs of production decline significantly as they can

     •     attract more competing suppliers;
     •     attract more productive and specialised pools of labour;
     •     attract more customers globally; and
     •     share and adopt new ideas and practices.

10   INFocom - edition one 2019   11
12   INFocom - edition one 2019
                                      build a city:
                                           LESSONS FROM RWANDA
                                                   COMPILED BY ODETTE PARFITT

For the first event in its How to Build a City series, the Nelson    Kamuhinda said any city or country could fare as well as Rwanda
Mandela Bay Business Chamber on the 15th of March welcomed           – with the will of its leadership. “If Rwanda can improve, everyone
Serge Kamuhinda, a former senior official in the Rwandan             else can do better. Leadership is the gap between potential and
government, as main speaker.                                         reality. Leadership has made the difference for us, even though
                                                                     all the odds were against us.”
The event, held at the Sun Boardwalk Hotel, brought together
over 120 guests to hear Kamuhinda’s account of Rwanda’s              Nelson Mandela Bay Business Chamber CEO Nomkhita Mona
journey, from a history of genocide to becoming a poster child       said she had taken Kamuhinda’s lessons to heart. “If we focus on
for progress.                                                        three things as a metro, it should be to dream big, start small and
                                                                     move fast,” said Mona. “We recognize that this city is more than
Kamuhinda, who is currently Volkswagen’s director of business        just the negative energy; there is a lot of good happening in the
development for Africa, said the success achieved by Rwanda          city as well, but there is a backward movement.
has been built on three specific values: “We choose to stay
together, we choose to be accountable to ourselves and we            “Whatever we do towards building a city, we need to make sure
choose to think big.                                                 the human element [is included]. We hope we are creating a
                                                                     movement with this series, and we want everyone to participate.”
“More than a million people were killed [during the genocide].
That was the status quo we inherited. We chose to have a society     Mona said the Business Chamber aimed to host a How to Build
based on values everyone can relate to.”                             a City event each month, to keep the conversation around the
                                                                     city’s progress going.
Kamuhinda said these values were visible in umuganda, which
involves the community coming together one Saturday each
month to clean the city of Kigali, and in the country’s approach
to promoting business growth through removing red tape. “In
Rwanda, if you want to register a business, it is done within six
hours online and then you can start doing business right away.”      For more information on the event series or suggestions for
                                                                     speakers and topics, contact
Rwanda is currently the second best country in Africa in terms of
the ease of doing business, and the third least corrupt country
on the continent. It has also established itself as the third best
destination for conferencing, by investing in hotels, establishing
RwandAir and simplifying the visa process for foreign travellers.
“We tend to see someone coming to our country as a customer
experience – and then we track that experience.”

                                                              argues at
                                             NERSA HEARING
                                                       COMPILED BY ODETTE PARFITT

     The Nelson Mandela Bay Business Chamber presented                  He also argued that Eskom’s sales forecast during the MYPD 4
     a compelling case against Eskom’s recent tariff increase           period was based on the assumption that increased prices would
     application, during a public hearing held by Nersa on the 16th     have no effect on electricity sales, while the Business Chamber
     of January.                                                        expects Eskom’s sales to decrease by at least 3% per year, in line
                                                                        with a report by Deloitte.
     The Electricity and Energy Task Team, represented by board
     director MC Botha and Task Team member David Mertens,              In turn, Mertens said all spending on new capital projects should
     strongly objected to the proposed increases during their           be suspended until new capacity is required, as Eskom is already
     presentation.                                                      generating more electricity than it can sell.

     Eskom initially requested increases of 15% per year for three      The Business Chamber’s presentation ended with further
     years, but later amended their application to 17,1%, 15,4% and     recommendations to:
     17,5% over the three years.                                        •   Instil a culture of payment in the customer base;
                                                                        •   Reduce municipal tariffs to stimulate the economy; and
     To the Business Chamber’s extreme disappointment, Nersa            •   Review tariff structures in order to stimulate sales growth.
     announced on the 7th of March that it had approved increases
     of 9,41% for 2019/20, 8,1% for 2020/21 and 5,22% for 2021/22.      Nelson Mandela Bay Business Chamber CEO Nomkhita Mona
     This is on top of a 4,4% increase that was approved earlier,       said innovative solutions would be needed from Eskom in
     which takes effect from April 2019.                                the long term. “They are trying to fix the same model when
                                                                        innovative thinking is needed to counteract the trend of rising
     The Business Chamber has been actively defending the interest      tariffs,” said Mona. “We cannot allow consumers to pay for
     of businesses by lobbying against unreasonable tariff hikes at     Eskom’s mismanagement and shortcomings. We expect the
     Nersa’s public hearings since 2006, and strongly objected to the   power utility and government to come up with forward-looking
     latest application.                                                solutions and strategies for energy supply, to foster economic
     During the presentation, Botha said the ripple effect of such
     high tariffs on local businesses could lead to economic decline,   Through its Electricity and Energy Task Team, the Business
     a decrease in investment and a sharp increase in unemployment      Chamber will continue to lobby for reasonable electricity tariffs
     and poverty.                                                       and a reliable electricity supply for businesses and domestic
                                                                        consumers alike.

14   INFocom - edition one 2019
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                                           what is it all about?
                                                                COMPILED BY TARRYN VASI

                                  The Nelson Mandela Bay Business Chamber strives to always invest time in the development
                                  of businesses. One of the programmes that it offers is the Exporters Development
                                  programme, in partnership with the Eastern Cape Development Corporation (ECDC).

                                  The programme’s purpose is to unpack the intricacies of the exporting space and help local
                                  companies to start exporting. It seeks to provide assistance to the different Small Medium
                                  Enterprises in order to position the businesses for future growth, as well as to address
                                  key constraints that companies face before entering the export market. These constraints
                                  involve costs, competitive foreign markets, contact with potential buyers, documentation
                                  and the process of changing their product to suit the market. The Exporters Development
                                  programme is considered a key pillar in the Eastern Cape Export Strategy spear-headed
                                  by ECDC.

                                  The pilot phase of the Exporters Development programme involved 10 emerging
                                  exporters or SMEs from the Nelson Mandela Bay and Buffalo City Metros. The participants
                                  were drawn from a pool of 47 applicants, of which the final 10 were in the following
                                  sectors: office furniture, agro-processing, creative and textile arts, footwear, chemicals,
                                  engineering, wool and mohair.

                                  The programme ran between April 2018 and February 2019, attaining most of the planned
                                  outcomes. In particular, the programme bridged the knowledge gap amongst the SMEs
                                  by addressing the key constraints that companies face before entering the export market.
                                  More importantly, the SMEs had an opportunity to develop an export marketing
                                  plan for their businesses with expert advice at hand. The programme was lauded for
                                  having a very practical emphasis, which assisted the SMEs to resolve their immediate
                                  business concerns.

                                  Participants on the programme also received advice and assessment on export marketing
                                  plans and export readiness assessments.

                                  The Nelson Mandela Bay Business Chamber would like to congratulate the 2018
                                  participants of the Exporters Development programme who will be graduating this year.
                                  We wish you success as you continue your journey as an exporter.

                                  For more information about the Exporters Development Programme, e-mail Sinazo Yekiwe

16   INFocom - edition one 2019
good news
                                DEVELOPS FROM EXPORTERS PROGRAMME
                                                                COMPILED BY TARRYN VASI

On the 27th and 28th of March 2019, the Eastern Cape
Development Corporation (ECDC), hosted the first Eastern Cape
Export Symposium and Exhibition at the Abbotsford Christian
Centre in East London.

The Nelson Mandela Bay Business Chamber’s Operations
Manager, Prince Matonsi, attended this event as a guest
speaker to touch on the overview of the Eastern Cape
Exporter Development Programme. Over 47 SMEs applied
to be on the programme and 15 were shortlisted and after a
rigorous process which included site visits, the final 10 SMEs
were accepted onto the programme. The pilot programme
was launched and started on 8th March 2018. Eventually 9
out of 10 SMEs completed the programme.

Matonsi’s presentation emphasised the importance of the
programme in light of the Quadruple Helix Model upon
which the partnership between Eastern Cape Development
Corporation (ECDC) and the Nelson Mandela Bay Business
Chamber (NMBBC) is based. He also gave an overview on the
aims of the programme.

He explained how this development programme was being run                     Furthermore, he explained the key constraints emerging
not only to position the Eastern Cape Province as an exporter                 exporters face in the export market and indicated that this was
but to grow exports and also aid in the development of emerging               why the programme existed – to educate the SMEs about the key
exporters. In doing so, the Business Chamber and Exporters                    constraints. He also mentioned that even though the programme
Eastern Cape provide valuable and practical mentorship to the                 faced challenges, it turned out to be a huge success. This is why
SMEs (emerging exporters) through their exporting members.                    the ECDC and the Business Chamber will continue to run this
This was one of the key aspects of the programme that the                     beneficial programme in 2019 to 2021 on a three-year cycle. The
audience at the conference commended as this gave the SMEs                    ECDC has committed to roll out the programme to more Metros
the much needed hand holding to develop a practical export                    and Cities in the EC based on the success of the pilot.
marketing plan.

“The Eastern Cape Province has a                                              “What a privilege it was to have been chosen
comparative advantage on the export                                           to be part of this programme. A huge
business due to its geographical                                              thank you to ECDC, the Nelson Mandela
location, namely: ports; affordable,                                          Bay Business Chamber, ITRISA and the
skilled and unskilled labour and an                                           Exporters Club for the opportunity.
excellent road network system. As                                             The course content was informative
we venture into Africa, it is most                                            and comprehensive. We were made
important to note that Africa does                                            aware of the risks and the importance
business on relationships. This means                                         of the incoterms and documentation
that in order to trade effectively, we                                        required. The visits arranged by the
need to note that it is imperative to build                                   Exporters Club were extremely interesting
relationships in Africa. There is need for                                    and also gave us ideas of how to streamline
more trade organisations in Africa, especially                                our factory. We have subsequently changed our
SADC and the need for introduction of a common                                production flow and capacity. Our manufacturing process enables
currency, like the Euro, to facilitate easy flow of goods and                 us to employ unskilled workers and train them accordingly, which
services competitively. ”                                                     is what government wants. We are excited about the future of our
                                                                              business, the opportunity to export and with the expansion, create
JOSEPH TAZVIVINGA, OFFICE BUDGET FURNITURE                                    further employment opportunities.”

                                                                              MARLENE MILLARD, SA CANVAS

One   day
                                      ANNUAL GOLF DAY
                                                               COMPILED BY TARRYN VASI

                                  Normally, a Golf Day is considered as just a fun event for players to relax and have an
                                  ‘out of office’ day. However, the Nelson Mandela Bay Business Chamber’s Annual Golf
                                  Day brings a different feel as it is considered to be an outdoors networking opportunity
                                  through sport. This networking opportunity is not only for the players, but the companies
                                  that sponsored and branded tees as well.

                                  This year’s event took place at the Wedgewood Golf and Country Estate on the 14th of
                                  March 2019. The 4-ball teams came in all geared up, registered for the event, received
                                  their goodies (Powerade, water and sunscreen lotion), took their 4-ball photograph and
                                  headed onto the course to tee off.

                                  The Business Chamber would like to congratulate the winners of the competition, Coca-
                                  Cola Beverages SA. Congratulations also goes to Vodacom for coming in second place
                                  and GVK Siya Zama Building Contractors for coming in third place. The winner of the
                                  Closest To The Pin Award on the 3rd hole is Cameron Harvey and the 7th hole is Justin
                                  Marshall - well done! Also, well done to the winner of the Longest Drive Award at the 10th
                                  hole, Heinrich Vosloo.

                                  A huge thank you goes out to all the players for bringing on good competition, to the
                                  sponsors of the tees that brought the fun into the day, Michael Sheehan for the amazing
                                  captures of the day, and to the following sponsors for the outstanding prizes:

                                  Amobia Communications                          Newton Park Superspar
                                  Atlas Security                                 PwC
                                  BLC Attorneys                                  Radisson Blu Hotel
                                  Blitzbokke                                     Rand Merchant Bank
                                  Dimension Data                                 Remax Independent Properties
                                  Dynamic Commodities                            SA Mohair
                                  First National Bank                            SA Rugby
                                  GVK Siya Zama Building Contractors             Spec-Savers
                                  Kelson Motor Group (Peugeot)                   Standard Bank
                                  Mantis Collection                              Sun International Boardwalk
                                  Market Square VW Uitenhage                     Vodacom
                                  Nashua                                         Vovo Telo Coffee Shop

18   INFocom - edition one 2019   19
                                     in red                           HIGH TEA
                                                                COMPILED BY TARRYN VASI

                                  For the Nelson Mandela Bay Business Chamber, the 14th of February 2019 was not only of
                                  significance because it was Valentine’s Day, but because it was the Ladies In Red High Tea
                                  too. The sun was out, love was in the air and due to the venue being the Audi Centre, even
                                  the Audis were on display. The beautiful ladies in red had the opportunity to network, drink
                                  free Mastertons coffee and enjoy a lovely breakfast as they listened to the sweet sounds
                                  of Gino-Lee’s singing. The Master of Ceremonies, Tham-Tham Uduojie, welcomed all the
                                  beautiful ladies, introduced Gino-Lee as entertainment and even did a few lucky draws.

                                  Everything about the event was beautiful. However, the most outstanding aspect of the
                                  event was the guest speaker, BLC Attorneys Director and Nelson Mandela Bay Business
                                  Chamber Board member Sonja Tifloen’s speech. Tifloen spoke about her incredible journey
                                  in life. She spoke about how she had a rough start to her career and explained how she
                                  was determined to work hard to reach her goals.

                                  Her speech touched on how women’s voices are not always equally heard, and reminded
                                  the women in the room that they are “powerful beyond any understanding”. Tifloen said
                                  women should rather focus on “internal barriers”, as those are the ones you can actually
                                  control. She encouraged women to be ambitious and to “go get what is yours”.

                                  Tifloen ended her speech off by asking women to “move away from the stereotypes and
                                  work towards diversity and inclusion”. The women in the room then applauded Sonja
                                  Tifloen on the words of encouragement.

                                  The Nelson Mandela Bay Business Chamber would like to thank the Audi Centre, Magnetic
                                  Storm, Mastertons, Broughton Country Estate, Sonja Tifloen and Gino-Lee for their
                                  contributions to the event.

20   INFocom - edition one 2019
international relations
                                                 COMPILED BY ODETTE PARFITT

On the 27th of February, the Nelson Mandela Bay Business              The delegation expressed that they were impressed with
Chamber welcomed a delegation from the East Gothenburg                the Business Chamber’s initiatives, including the Enterprise
district in Sweden.                                                   Development Programme, the in-house Help Desk and the
                                                                      events through which small businesses are empowered and
The district was represented by political leaders and officials,      linked to larger companies and opportunities.
including elected council members Peter Mattiasson and Anneli
Eriksson, city district head Gitte Caous, head of communications      As part of forming strategic relations, the Business Chamber will
for the district Malin Ankarhem and Katja Ahlsell of the Culture      continue engaging with the East Gothenburg district to explore
House Bergsjön project.                                               ways in which we can assist the community and work together
                                                                      in future.
The delegation met with the Business Chamber CEO Nomkhita
Mona and Operations Manager Prince Matonsi, with the aim
of learning more about the Business Chamber’s initiatives to
support SMEs in Nelson Mandela Bay.

During the meeting Caous said the delegation hoped to seek
the Business Chamber’s advice on how the district of East
Gothenburg could assist small business owners in growing their

Mattiasson added that the aim was to develop businesses and           A delegation from East Gothenburg in Sweden visited the Business Chamber in February
                                                                      to seek advice on supporting SME development in their district. From left is Gitte Caous,
help them find a market for their products, and ultimately create     Prince Matonsi, Nomkhita Mona, Peter Mattiasson, Malin Ankarhem, Anneli Eriksson,
more jobs for the district’s residents.                               Katja Ahlsell and the Nelson Mandela Bay Municipality’s Nicole Scharnick.

                                                         SUPPLYING INDUSTRIAL GASES TO
                                                         SOUTHERN AFRICAN BUSINESSES
                                                         FOR 50 YEARS
              Service that
              delivers the

just for you
                                                                       MORE ABOUT COO
                                                                      COMPILED BY JEREMY DOBBIN

                   Certificates of Origin
                   As an accredited service provider, the Nelson Mandela Bay Business Chamber signs certificates of origin for
                   businesses in Nelson Mandela Bay.

                   What is a Certificate of Origin (COO)?
                   It is a document which states the origin of exported goods. There are various reasons why it may be needed,

                   •      Buyer Preference – the buyer may have a preference as to where the goods originate;
                   •      Financial Requirement – may be requested by an issuing bank; and
                   •      Import Control – the importing country may have specific duties, quotas, or anti-dumping regulations.

                                                             ANNUAL NUMBER OF CERTIFICATES ISSUED

                        Average annual growth from 2014 to 2018: 1.23% each year

                                                 NUMBER OF CERTIFICATES ISSUED PER MONTH (2011-2019)

                        August 2018 was our busiest month to date: we issued a record number of 2 042 certificates during the month!

                                                    NUMBER OF CERTIFICATES ISSUED PER SECTOR IN 2018

22   INFocom - editionFor
                            2019 information or assistance with Certificates of Origin, kindly contact
budget speech
                               ANALYSED AT BUSINESS BREAKFAST
                                                 COMPILED BY ODETTE PARFITT

While the national budget speech listed several priorities that    the kind of growth we need to make a meaningful dent in our
could spur business growth, government needs to do more to         unemployment situation. In South Africa, sustained growth of
promote investor confidence.                                       less than 4% never really brings a meaningful decline in the
                                                                   unemployment rate.
This was the sentiment at the post-budget speech business
breakfast, hosted by Absa and the Nelson Mandela Bay Business      “It’s not just economic growth we want, but inclusive growth.
Chamber on the 28th of February.                                   The growth strategies we should be thinking about are the
                                                                   strategies that will lift up as many people as possible.”
The event, held at Elizabeth Place, saw business leaders from
across the Metro converge in one place to hear Absa’s economist    These strategies should include plans to improve private
Miyelani Maluleke’s analysis of Minister Tito Mboweni’s budget     sector confidence. “We need policies that bring private sector
speech.                                                            confidence.”

Maluleke said government had a crucial role to play in             Business Chamber CEO Nomkhita Mona also called on the
strengthening the economy. “Government is very important to        business community to do their part in creating better business
the economy, not just as a provider, but as an enabler,” said      conditions. She also encouraged guests to take part in the
Maluleke.                                                          Business Chamber’s How to Build a City event series.

He said the government’s decision to raise the tax burden by       “This is a call to stand up and take our city back,” said Mona.
adding carbon tax is not helpful to overall economic growth.       “We want everyone to be involved. The more we are and the
“Part of the solution should be to look at SARS’s efficiency.”     louder our voice, the better for our city.”

Maluleke also emphasised the need for growth that brings
opportunities for the country’s unemployed. “We’re not seeing

                       legalisation & labour
                              WORKPLACE EFFECTS OF MARIJUANA
                                                 COMPILED BY ODETTE PARFITT

The legalisation of marijuana and the effects this could have in   “A layperson would struggle with the field test. It would need to
the workplace, was the controversial topic of discussion at a      be done by a medically trained person who can see the signs.”
recent session held at the Business Chamber.
                                                                   Though employers cannot regulate the personal use of
The well-attended event was hosted by Joubert Galpin Searle,       cannabis, JGS labour specialist Leon van Staden said being
with JGS labour specialists and Ampath pathologist Dr JD           “under the influence” was usually defined as no longer being
Deetlefs unpacking the workplace implications of legalising        able to perform one’s duties with the same skills as a sober
dagga use.                                                         person.

Deetlefs explained the processes of testing employees for          “Cannabis exposure definitely affects psychomotor abilities and
cannabis, but said it could be difficult to gauge whether a        this lasts much longer than the high, which has a huge impact in
person could be under the influence of marijuana.                  terms of labour,” added Deetlefs.

“The signs can differ from person to person, in the way they       The Employment Equity Act determines that employers cannot
react to the drug,” explained Deetlefs.                            compel their employees to undergo testing, but Van Staden
                                                                   and his colleague Rowan Willcock indicated that testing can
He warned against testing an employee suspected of cannabis        be legally justified due to the nature and requirements of
use too early, as the urine test – which must be performed by a    certain jobs.
medical professional – detects a metabolite which only forms a
few hours after use.                                               Willcock added that employers should develop a clear
                                                                   communication plan around cannabis and related workplace
Deetlefs said a normal sobriety test is used in Canada, where      policies. “Employers must be strict as with alcohol. We don’t
the personal use of cannabis has already been legalised.           want people in the workplace who are a danger to themselves.”

                                                           COMPILED BY THAM-THAM UDUOJIE

                                  In 2018, the Nelson Mandela Bay Business Chamber embarked on creating change in the
                                  lives of young people by assisting the Elsen Academy and Kleinskool Initiative. We held
                                  an equipment drive for Elsen Academy and a full adventure day for Kleinskool Initiative.
                                  We would like to thank all those who supported us last year in making our goals a reality.

                                  This year we have adopted the Masinyusane Development Organisation, an education
                                  focused non-profit entity working with children and families in the townships of Port
                                  Elizabeth. The organisation was founded in late 2008 when a group of friends came
                                  together and discussed the need for a development organisation. The two flagship
                                  programmes they run are Top Learners, aimed at ensuring all of the qualifying learners
                                  from Port Elizabeth’s 35 township high schools have access to university; and the
                                  Children’s Education & Youth Unemployment, focused on foundation phase literacy. The
                                  Business Chamber recognises the need for community development and investing in
                                  child education from early on. With Masinyusane, we hope to assist in creating change in
                                  our local communities and the lives of young people.

                                  As the Business Chamber, we urge all our members to support us in rolling out the
                                  initiatives which the Business Chamber will be implementing in assisting Masinyusane.
                                  We also request your assistance with the below list in achieving our goals:

                                  Top Learner Program:
                                  1. Bus fare for university students
                                  2. Mentorship
                                  3. After graduation – employment plan
                                  4. Access to technology

                                  Children’s Education program:
                                  1. Mobile classrooms
                                  2. Books and stationery
                                  3. Security
                                  4. Food for child-headed households
                                  5. Sanitary pads and toiletries
                                  6. Winter clothes

                                  This will be an ongoing initiative. It is our goal to invest as much as we can in the lives
                                  of young people in Nelson Mandela Bay. Join us in creating that change! Any and all
                                  assistance is welcome.

                                  Contact Tham-Tham Uduojie at

24   INFocom - edition one 2019
Specialists In Material-Handling Equipment

                     Andile Mtshwane Peter Hodgkinson

                                         & manufacturing
                  Agro-processing and manufacturing count among the sectors identified by the Nelson Mandela Bay Business
                  Chamber for their potential to contribute significantly to the city’s economic growth. These two industries play
                  a crucial role in providing employment and export opportunities in the Bay.

                  This section celebrates some of the successes of member companies in these industries, and highlights the path
                  towards building an inclusive economy within this space.

26   INFocom - edition one 2019
NOTES   from the top
 Wolf Edmayr

Agro-processing and Manufacturing sectors have under them a wide spectrum
of companies. BKB Limited is one of these companies and has proved its great
service value within our community. BKB Limited is not only led by a great team, but
by a man of great and real substance, Wolf Edmayr.

Wolf Edmayr qualified as a chartered accountant with Deloitte & Touche in Johannesburg.
Before joining BKB Limited in 2004, Edmayr held the titles of Audit Partner and Managing
Director in various companies. Edmayr, values are what he focuses on and lives his life
by. Values are the ‘foundation’ of his relationships and the organisation he leads. Edmayr is
considered as ‘an advocate of living with integrity’. This is why people find it easy to trust him
and to stay loyal not only to him, but to his brand as well.

It is through this loyalty that the brand has grown exponentially. This year, BKB Limited celebrates 100
years of trust. In order to find out more about the background of getting this far, we asked Edmayr a few
questions and these were his answers:

BKB Limited recently reached its 100 year anniversary. How do you feel about that?
Extremely proud! Proud to be part of an organisation that has always placed relationship, values and trust at the
forefront of their business strategy.

What was your motivation through all these years?
We have been very successful in putting together a really competent management team and a great group of people
at BKB. Motivation in its widest sense is experienced by everybody.

How did a Chartered Accountant become interested in Agro-processing?
I really enjoy business. The accounting qualification has been one of the steps (a really good one) that makes business work.
Agriculture and Agro-processing have been opportunities that presented themselves along the way.

BKB Limited celebrates 100 years of trust. How does one manage to build such a reputation?
Our company’s story is a story of relationship and trust. Our relationships are cultivated over time; they are ones that endure and take
commitment and trust. Trust comes from a sense of common values and choosing to practise our values rather than simply professing

Why do you consider your business as the ‘home of agriculture’?
BKB is the trusted home of Agriculture in South Africa. This is supported by:
• A great team of people.
• A diverse offering for all in Agriculture and Agro-processing.
• A national footprint.
• A reliable partner.

How do primary producers and agricultural groups within the Metro, as stakeholders, affect BKB Limited as a business?
BKB started in Port Elizabeth 100 years ago. We consider the Metro and all its stakeholders to be part of our business.
Although most of BKB’s business is done throughout the country, we are proud to be part of Port Elizabeth and have an offering to the
people of our Metro.

What were the three biggest achievements for BKB Limited during the past 100 years?
• Expanded and positioned as the number one natural fibre and livestock auctioneering business in Africa.
• Diversification of the business both locally and internationally.
• Maturing into a company culture where people are our differentiating factor with common values that are underpinned by integrity.

Where do you see BKB Limited, as a business, in the next 5 years?
BKB has over the past year grown as a national player in the Agri-space. We operate from Cape Town to Ermelo and from Upington
to Swaziland.

The growth trajectory has been established and will be maintained, creating value through innovation and efficiency.

28   INFocom - edition one 2019
Nelson Mandela University is a new generation university, with
campuses in the Eastern and Southern Cape, that is doing things
differently in striving to become a dynamic African university,
recognised for its leadership in generating cutting-edge knowledge
for a sustainable future.

 Change the World                        

mohair company
                                            ATTENDS GERMAN TRADE FAIR
                                                         COMPILED BY ODETTE PARFITT

     La Mohair, a local exporter of kid mohair products, was invited
     to take part in a prestigious trade fair held in Germany in March.

     The business attended the Europe, Middle East and Africa
     (EMEA) Trade Fair in Berlin on the 19th and 20th of March. This
     fair provides mohair producers from across the EMEA region to
     showcase their products, meet with industry partners and take
     advantage of opportunities for development.

     La Mohair already exports to Scandinavian markets and also
     took part in the Africa Sourcing and Fashion Week in Ethiopia
     last year.

     Speaking ahead of the Berlin fair, owner Larissa Primmer said:
     “We are a relatively small exporter of South African kid mohair
     products to our international clients, but we hope to broaden
     our horizons and build a bigger market overseas.

     “I am mostly looking forward to growing my business and new
     opportunities for the future.”

     Primmer said she also hoped to bring more employment and
     training opportunities for unskilled and semi-skilled women.
     “Through in-house training programmes we aim to develop
     and upskill these women to empower them, and to further the
     success of La Mohair.”

                                          lighthouse mes
                                                           S4 INTEGRATION
     Industry 4.0 is set to lead the way of digitisation of manufacturing   S4 Integration offers services to the end customer covering
     processes. Manufacturing Executing Systems (MES) are a critical        installation, integration, development and support of Lighthouse
     component of Industry 4.0 as it acts as an enabler to achieve          MES. With a number of local installations within the automotive
     digitisation from end-to-end.                                          and packaging sector, Lighthouse MES has become synonymous
                                                                            with a Manufacturing Executing System with measurable
     LIGHTHOUSE MES                                                         benefits to the end customer.

     Lighthouse Systems, a global vendor of Manufacturing Execution         S4 Integration offers the South African market a tried and tested
     Systems (MES) software offers;                                         MES/MOM platform. Lighthouse MES is currently servicing
     •    Smart Manufacturing through the digitisation of                   various industries, including packaging, food and beverages,
          manufacturing processes and operations.                           automotive (OEM and Tier 1 – Tier 2), aerospace, building and
     •    Removes traditional organisational silos to optimise              construction, electronics, pharma / life science and sustainable
          business processes.                                               energy.
     •    Creates an uninterrupted thread of real-time critical data
          throughout manufacturing operations.                              Lighthouse MES is built on a modular platform consisting of four
     •    The empowerment of organisations, from plant operatives           main areas of manufacturing operations, namely Production
          to executives.                                                    Operations, Quality Operations, Inventory Operations, and
     •    Improvement in efficiency, output, compliance and                 Maintenance Operations.
          customer satisfaction.
     •    Low risk and high reward.
     •    Industry-ready solutions:
     •    Industry recognition

30   INFocom - edition one 2019

                               transnet freight rail
Transnet Freight Rail is part of Transnet Limited, a public company
with the South African government as its sole shareholder.
                                                                                    A FEW FAST FACTS ABOUT
We are a world-class freight transport company, transporting
bulk, break-bulk and containerized freight on approximately                       TRANSNET FREIGHT RAIL
22 000 route km of railway, of which 1500km covers our
internationally acclaimed heavy haul lines - used for the export
of coal and iron ore and low density branch lines covering 3
928km.                                                                        1    We replaced a total of 6 million trucks in
                                                                                   the past financial year.
The very core of our business is in the movement of high density
cargo over long distances.                                                2        If you take a plane from OR Tambo, we
                                                                                   provided that fuel.
We provide a critical link between mines, ports, production
facilities and distribution hubs as well as facilitating regional trade
by connecting to our neighbouring country’s railways. One of the          3        We railed wheat that could bake 5,9
crucial elements that binds all of us is our interconnectedness,                   billion loaves of bread.
our economic activity, our ability to transform and make every
possibility a reality.                                                             If you buy an avocado in Europe,
                                                                                   chances are it was once in our wagons.
This is where we begin to see and shape a new vision and a new
mission. Our Mission is all about linking economies, connecting
people and growing Africa.                                                5        Customers are committing long term
                                                                                   with us.
As we embrace this role, we come to understand that our vision
is fuelling Africa’s growth and development as the leading                6        We move South Africa forward!
provider of innovative supply chain solutions.

Solutions Delivered, our tag line the very essence of our brand
and what we want to be known for, we implement our strategic
thrusts with vigour and commitment understanding that change
is part of our model and that without it, we cannot embrace the
future or deliver on our promises.

At the heart of our strategy is finding the balance between
stability and risk, cascading a culture of innovation and analytics
as we implement new technologies and as we transform and
secure sustenance of our eco-systems.

Our strategic thrusts are rooted in being Agile enough to
embrace change. Our focus is on the implementation of digital
technologies by a united Transnet which assists us to deliver on
our promises every time and allows us to be admired for our
service excellence.

As we embrace and embody our vision, mission and strategic
thrusts, we are able to say with pride that we as Transnet are

                                                                    for the
                                  AUTOMOTIVE INDUSTRY
                                                         COMPILED BY ODETTE PARFITT

     The national government has designed the ambitious South              aware of the dire need for job creation in our country, and the
     African Automotive Masterplan to grow the country’s                   transformation imperative across all sectors. These things can
     automotive sector into a globally competitive industry.               only be unlocked by increasing our participation both across
     Infocom posed a few questions to Renai Moothilal, executive           and deep into the value chain. That means more assembly,
     director of the National Association of Automotive Component          more localisation and value addition - all of which contributes to
     and Allied Manufacturers (NAACAM), to unpack the objectives           higher competitiveness, for even greater volumes of business.
     of the Masterplan.                                                    The objectives work in a virtuous circle.

     What is SAAM?                                                         The biggest shift seen in the incentive policies that will underpin
     The SA Automotive Masterplan 2035 is an overarching strategic         the masterplan, is definitely a move towards driving greater
     plan to help the automotive manufacturing sector achieve              localisation for both vehicle assemblers and component
     growth levels that will unlock a host of economic benefits for        manufacturers - after it was found that the current APDP was
     business and the country in general. It provides a blueprint for      delivering results that favoured assembly, whilst localisation
     all stakeholders to deliver activities that will ensure the country   rates regressed over time.
     remains one of the key global destinations for automotive
     manufacturing                                                         What is the industry’s, and NAACAM’s, role in driving this
                                                                           agenda forward to 2035?
     What are the key goals of SAAM?                                       It’s quite simple actually:
     SAAM is underpinned by a vision that will see “a globally             •     Find ways of doing business that will contribute to the
     competitive and transformed industry that actively contributes              attainment of the long-term objectives.
     to the sustainable development of South Africa’s productive           •     Invest for growth.
     economy, creating prosperity for industry stakeholders and            •     Both assemblers and tier one component manufacturers
     broader society”.                                                           need to develop local suppliers and sub-suppliers.
     To that end, the following objectives will need to be achieved:       •     Support, rather than prevent, new market entrants.
     •    1% of global vehicle production                                  •     Upskill employees, find innovative ways of creating jobs,
     •    60% local content                                                      and leverage the various incentives and other packages of
     •    100% employment growth                                                 support that are present in the sector.
     •    Competitiveness to leading competitor standards                  •     Give the public a reason to ensure the taxes spent on
     •    Industry transformation                                                supporting the sector, is considered well spent.
     •    Increased value addition within global value chains.
                                                                           NAACAM will continue to be the pre-eminent voice and authority
     Why are these goals important for the industry?                       on the South African automotive component landscape, and will
     The reality is that all of these objectives would need to be          always look to ensure that members operate in an environment
     met in tandem to ensure the country receives the benefits of          that is conducive to long term growth and sustainability.
     having a domestic automotive manufacturing sector. We are all

32   INFocom - edition one 2019
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