k5 aviation

EXPLORING BUSINESS PROSPECTS IN SOUTHERN AFRICA

ORGANISED BYSOUTH AFRICAN CHAMBEROF COMMERCE & INDUSTRY

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with, the contents of this magazine.

EditorTracee Harvard

Senior Copy EditorTania Griffin

Copy EditorYusrah Isaacs

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ContributorsTaryn Springhall

Adam CurrieRizel Delano

Peggy DrodskiGarreth Bloor

Leigh HarrisonErina Botha

Susanne DittkePiet Coetzer

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For this Angola that I love!

BPC has followed Angolan history. We are here to say that we changed, that we modernized thinking on your company.Because we believe that our values are faithful to our culture. And your company is part of rhythm of our days.Because believing in future is part of us. We see the color that every day fulfills the happiness of our origins. Let’s all together give a step forward.Yes! We changed, but we still connected with company.

For this Angola that I love!

BPC has followed Angolan history. We are here to say that we changed, that we modernized thinking on your company.Because we believe that our values are faithful to our culture. And your company is part of rhythm of our days.Because believing in future is part of us. We see the color that every day fulfills the happiness of our origins. Let’s all together give a step forward.Yes! We changed, but we still connected with company.

For this Angola that I love!

BPC has followed Angolan history. We are here to say that we changed, that we modernized thinking on your company.Because we believe that our values are faithful to our culture. And your company is part of rhythm of our days.Because believing in future is part of us. We see the color that every day fulfills the happiness of our origins. Let’s all together give a step forward.Yes! We changed, but we still connected with company.

For this Angola that I love!

BPC has followed Angolan history. We are here to say that we changed, that we modernized thinking on your company.Because we believe that our values are faithful to our culture. And your company is part of rhythm of our days.Because believing in future is part of us. We see the color that every day fulfills the happiness of our origins. Let’s all together give a step forward.Yes! We changed, but we still connected with company.

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The great debate around rail and road freight transportation

VSVSVSVSRAILRAILRAILVSRAILVSRAILVSRAILVSRAILRAILRAILVSRAILVSRAILVSRAILVSVSROADROADROADVSROADVSROADVSROADVSROADROADROADVSROADVSROADVSROADVS19

SACCI

SACCI’s first Quarterly Review in March 2009 was developed in the period leading up to the elections.

Its assessment of the key focus areas in the policy environment at that time therefore provides a sound benchmark for comparison of the developments in the fi rst 100 days under the leadership of the Zuma administration.

In reviewing President Zuma’s first 100 days, greater weight was placed on more recent events given the challenges associated with the mobilisation of the new government structure.InfrastructureThe rating of this focus area remained tentative as business awaited the direct benefi ts of the infrastructure improvement programmes.

The new government declared its support for ongoing infrastructure projects and committed itself not only to strengthening existing projects, but to extending them to rural communities.

These projects included the roads upgrade, Bus Rapid Transport system, construction of houses, schools, and water and sanitation infrastructure.

Many of these development projects would cause hardship to both business and consumers until their completion.

Cost pressures in the business environment had also been created by the recent adjustments in certain administered prices, although these could also be viewed as contributing to the maintenance of infrastructure that services the business environment.

The government’s infrastructure programmes and expenditure were seen as crucial in leading the economy through the

economic crisis. Its ongoing commitment to these programmes was welcomed.

LabourThe national skills shortage continued to be a challenge. Combined with the efforts of the newly established Ministry of Higher Education and the transfer of the mandate for oversight for the Sector Education and Training Authorities (Setas) from the Department of Labour to the Department of Higher Education, new energy should be directed at the skills challenge.

As a long, contentious issue in the tripartite relationship between the government, business and labour, attention was finally being turned to resolving concerns surrounding labour broking practices. Parliament would open public debate on the matter late in August.

The annual ‘strike season’ of labour unions reached record highs this year and had come at significant cost to the economy if one considered the labour days lost nationally.

Labour appeared increasingly belligerent, particularly from the perspective of foreign stakeholders, who may not always distinguish between labour strikes and service delivery protests.

Recently, strike season seemed to be making way for the early arrival of ‘crime season’.

Crime and securityThe recent spate of heists in shopping malls was alarming and had a very negative impact on the policy radar.

The level of criminal activity being experienced was generally associated

SACCI highlights key issues in the business environment at the fi rst 100 days of the Zuma administration

IN ON ZUMAIN ON ZUMAIN ON ZUMA

35

NAMIBIA

I n addition to its membership in the Southern African Development Community (SADC), Namibia presently

belongs to the Southern African Customs Union (SACU) along with South Africa, Botswana, Lesotho and Swaziland, with a small domestic market but favourable location, with superb transport and communication systems.

In July 2008, SACU signed a Trade, Investment and Development Cooperation Agreement (TIDCA) with the United States with plans to negotiate free trade agreements with China, India, Kenya, and Nigeria.

Namibia is a member of the International Monetary Fund, the World Bank, the World Trade Organization, and is a strong proponent of the Doha Development Agenda.

In December 2007, Namibia signed an interim Economic Partnership Agreement (EPA) with the European Union, which provides duty- and limited quota-free access to European markets for exports, thereby continuing many of the expiring trade benefi ts from the Cotonou Agreement.

Since independence, the Namibian government pursued free-market economic principles designed to promote commercial development and job creation, favouring donor assistance and foreign investment.

Namibia’s economy consists primarily of mining, agriculture and manufacturing, heavily dependent on earnings generated from primary commodity exports in a few vital sectors, including minerals, livestock, fi sh, beef and meat products, grapes and light manufacturers.

Over 80% of Namibia’s imports originate in South Africa and many Namibian exports are destined for the South African market.

Outside of South Africa, the European Union (primarily the United Kingdom) is the chief market for Namibian exports.

Its gross domestic product (GDP) per capita is relatively high compared to other developing countries, with one of the most unequal income distributions on the African continent.

Although the majority of the population depends on subsistence agriculture and herding, Namibia has more than 200 000 skilled workers.

State-owned enterprises operate in many key sectors of the economy, with the government having stakes in telecommunications (fi xed and mobile voice and data services), energy, water, transport (air, rail, and road), postal services, fi shing, and tourism.

In terms of revenue, mining is the largest contributor, accounting for 25% of the country’s income. Namibia is the fourth largest exporter of non-fuel minerals in Africa and the world’s fifth largest producer of uranium. There has been signifi cant investment in uranium mining and the country may become the largest exporter of uranium by 2015.

Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds, with about two million carats generating the bulk of its export earnings. The country also is a source of natural stones such as granite, marble and semiprecious stones, with mineral resources zinc, copper, lead, gold, silver, tin, tungsten, fl uorspar and salt.

During the pre-independence period, large areas of Namibia, including offshore, were leased for oil prospecting. Natural gas was discovered in 1974 in the Kudu Field off the mouth of the Orange River, containing reserves of over 1.3 trillion cubic feet. Plans are also under way to build the country’s first combined cycle power station near Oranjemund.

In the commercial sector, agriculture consists primarily of livestock ranching, predominantly in the central and northern regions, while karakul sheep and goat farming are concentrated in the more arid southern regions. Subsistence farming is confined to the communal lands of the north, where roaming cattle herds are prevalent with main crops being millet, sorghum, corn, and peanuts.

Table grapes, grown mostly along the Orange River in the south, are becoming an increasingly important commercial crop and a signifi cant employer of seasonal labour.

One of the fastest growing areas of economic development in Namibia is tourism and wildlife conservancies, blessed with extensive tracts of animals and rich scenery, one of Namibia’s richest assets.

Varieties of game include more than 20 antelope species, large mammals such as

elephant, rhino, giraffe and lion with the largest cheetah population in the world.

Tourism is the third-largest source of foreign exchange after mining and fi sheries, and international travellers are attracted by the country’s unique mix of political stability, cultural diversity and geographic beauty.

The clean, cold South Atlantic waters off the Namibian coast are home to some of the richest fi shing grounds in the world, with potential yields of up to 1.5 million metric tons per year. Commercial fi shing and fi sh processing is a significant sector of the Namibian economy in terms of employment, export earnings and contribution to GDP, with its infrastructure mostly concentrated in Walvis Bay, operating a well developed deepwater port, considered as one of the best in Western Africa.

The main fi sh species found in abundance are pilchards (sardines), anchovy, hake and horse mackerel. There also are smaller but signifi cant quantities of sole, squid, deep-sea crab, rock lobster and tuna. However, at the time of independence, fi sh stocks had fallen to dangerously low levels due to lack of protection, conservation and overexploitation of these resources.

Namibia also boasts modern civil aviation facilities and an extensive, well maintained land transportation network.

Construction continues to expand two major arteries; the Trans-Caprivi and Trans-Kalahari Highways, which will further open the region’s access to Walvis Bay.

Namibia boasts an impressive rating as a competitive investment location. Besides its continuous ranking among the fi ve most competitive economies in Africa by the World Economic Forum, it also achieved a positive rating from the 2006 Fitch Ratings and a B category Country Risk by the London-based Economic Intelligence Unit, the highest score achieved in sub-Saharan Africa.

Good governance, respect for the rule of law, investment-friendly legislative and regulatory framework, a low crime rate and world-class physical infrastructure, enrich Namibia’s attractiveness for leisure, business and investment.

Rizel Delano

Namibia is a leading activist of Namibia is a leading activist of Namibia is a leading activist of regional economic integrationregional economic integrationregional economic integration

18 ZOOMING IN ON ZUMA SACCI highlights key issues in the business environment at the markofthefirst100daysoftheZumaadministration

26 RAIL VS ROAD Thegreatdebatearoundrailandroadfreighttransportation

34 A GOOD INVESTMENT Namibiaisaleadingactivistofregionaleconomicintegration

38 LEARNING FROM PAST MISTAKES Privatefinancewillneverbethesameagain

45

ECONOMICS

45

L ocal Economic Development (LED) is a concept that has captured interest across a broad variety of

sectors, both within the government and the private sphere.

With local and international agencies established to promote the concept, the LED philosophy seeks to build up the local economic capacity of an area by engaging with a variety of stakeholders through a five-step process, whereby strategic planning, co-operation and communication are undeniably the central tenets.

As global shifts in the world economy have left some communities marginalised, creating a vacuum whereby LED can mean the opportunity for new businesses in the private sector to emerge, while at the same time allowing the government to use its practice as a means to bring isolated communities and sectors into the mainstream of the national and global economy.

According to the World Bank, LED offers “local government, the private sector, the not-for-profit sectors and the local community the opportunity to work together to improve the local economy”.According to the South African Local Economic Development Network, “The increased focus on LED locally is to a large extent the result of the growing globalisation of our economies.”

“The fundamental difference between LED and traditional one-dimensional approaches to economic development, such as national industrial policy, technology transfer or SME support initiatives, infrastructure upgrading, urban planning or skills development is”, as the organisation explains, due to the fact that “it combines all of these frequently fragmented approaches and tools into a systemic and sustainable concept which cuts across many different portfolios”.

Illustrating the prerogative of co-operation between the government and business, the Small Enterprise Development Agency (seda) points out that LED focuses attention on the local level “as the most appropriate place for economic intervention”, due to “this level being the most readily accountable to the public, while having the legitimacy of being democratically elected.”

LED is an approach applicable to a variety of sectors, but in South Africa, tourism

has become a prime opportunity area for business and government.

Authors Tony Binns and Etienne Nel believe that in South Africa, “the potential of tourism to revitalise local economies at a crucial time in the country’s history has been seized upon by many local authorities and stakeholder groups who have sought to use it as an LED strategy to create jobs and refocus their local economies”.

A case in point is businessman Mark Johnson, the driver of a LED project near Nquthu in KwaZulu-Natal. Johnson says that having grown up in the area, it was clear the community needed to look for other means of economic activity.

As a result of the need, a vision emerged for the construction of a hospitality sector in the district, “with accommodation units, heritage sites, a conference venue, enterprise activities, arts and crafts and activities related to the history and characteristics of the area”.

His advice was simple during a recent interview in which he told the SA LED Network: that community involvement “is critical” for success.

In order to realise the dream of this LED project, Johnson approached both the government’s Industrial Development Corporation (IDC) and Khula Enterprises to acquire funding.

The SA LED Network, an association for LED practitioners in the country, identifi es the fi ve-step process for successful LED practice as follows: organising the effort; conducting the Local Economy Assessment; developing the LED strategy; implementing the LED strategy; and fi nally, reviewing that LED strategy.

It notes furthermore that “a well defi ned outline of prioritised LED activities to be undertaken alongside its associated cost budget implications is important”.

Potential sources of funding, depending on the nature of the proposed projects, include municipal budgets, state-owned enterprises, the private sector, donor organisations and non-governmental organisations (NGOs).

Douglas Cohen at the South African Local Government Association (Salga) told Opportunity during an interview that “LED remains a relatively new concept in South Africa, with the result being that some contemporary ideas around the role and implementation of the practice are not well known.”

Cohen is clear that getting LED in South Africa to “work” is critical in addressing poverty and inequality in the country.

The co-operative role for both business, government and the community is, in his view, essential.

He advises that there needs to be a more strategic approach to the development of local economies and a shift away from narrow municipal interests focused only on government inputs into ad hoc projects.

The success factors in effective LED plans for local government are essentially the same as those for traditional business practices: integration into existing value chains, market access strategies and the identification of “real” economic opportunities. This approach offers a much more effective and sustainable way of leveraging public-sector funds into economic growth and development.

Partnerships with institutions of higher learning are also increasingly integral to successful LED initiatives. During a recent interview, consultant Dr Roger Stewart recently relayed his experience in working with an envisaged Rural Clinical School (RCS), now a fl agship project in the strategy of the University of Stellenbosch.

The normative objectives included making “the RCS a knowledge pioneer that will apply its capabilities within Africa, to make a more direct, signifi cant impact on society”.

“The RCS must make a local contribution to the achievement of the health-related Millennium Development Goals (MDGs) in Africa,” notes Stewart, who emphasises that healthcare and economic development are interdependent, illustrating yet again why the practice of LED as a partnership between sectors has gained credence in an increasingly integrated economic environment.

LED may well increase in its appeal to the private sector as a fresh new business-minded approach to corporate social responsibility. It offers a clear strategy that includes working across a wide variety of sectors and political institutions, while holding to set objectives that can be measured and monitored.

Added to the mix is an increasingly active grouping of supportive research institutions that are organising their efforts to support, educate and train companies, NGOs and government departments in the successful implementation of LED projects.

Garreth Bloor

A new approach for a global market

LED BY LED BY LED BY EXAMPLEEXAMPLEEXAMPLE

LEARNING FROM PAST MISTAKES

Private fi nance will never be the same again

Realising human capital gainsRealising human capital gains

44 LED BY EXAMPLE Anewapproachforaglobalmarket

48 PROTECTING YOUR ASSETS Realisinghumancapitalgains

52 TURNING DREAMS INTO REALITY Youngpeopleinbothsub-SaharanAfricaandNorthAfricaare strugglingtofindgainfulemployment.SamsungRealDreams hasassistedmanyinbecomingentrepreneurs

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An informative report on all infrastructural development projects in southern Africa

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TURNING DREAMS INTO REALITY

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Young people in both sub-Saharan Africa and North Africa are struggling to fi nd

gainful employment. Samsung Real Dreams has assisted many in realising

their dreams of employment and has also helped some become entrepreneurs

60 61

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TRANSPORT

P ressures on reducing logistics costs internationally are even more acute in the South African

context given our geographic location and, therefore, the importance of the focus on logistics value and cost drivers,” says Hans Ittmann, director of the Built Environment at the Council for Scientifi c and Industrial Research (CSIR).

From a data analysis point of view, the survey covers the 2007 reporting year and with five years of data available, it is possible to show meaningful trends on logistics and land transport costs, something that was not possible before the start of this survey in 2004.

The next World Bank report on international logistics competitiveness is due out soon. In the fi rst report, South Africa was fairly well placed at position 24 out of 150 countries.

For South Africa to remain in this good position, it is essential to maintain a comprehensive picture of the state of logistics, but the figures for this survey indicate that South Africa could be worse off in the next report.

The African Economic Outlook, released by the Organisation for Economic Co-operation and Development (OECD) in May this year, projects that the continent can expect only 2.8% growth in 2009, less than half of the 5.7% expected before the global economic crisis.

In South Africa, growth is expected to fall to 1.1% due to the impact of the crisis on demand for mineral exports compounded by a contraction in private consumption and investment. The internal logistics costs – particularly the costs associated with transporting goods inside our borders – need to decrease.

The global economic downturn is going to make it diffi cult to remain competitive on an international level, but it is in these times that innovative approaches and solutions are required to at least retain South Africa’s position in the global marketplace.

Logistics costsThe logistics costs in South Africa for 2007 were R317 billion or 15.9% of gross domestic product (GDP), up by 1% from the previous year.

Compared to a fi rst-world country such as the United States, which stands at 10.1% of GDP, South Africa is high, but US logistics costs have also risen into double fi gures for the fi rst time since 2000.

The actual logistics cost fi gures for South Africa are depicted in Figure 1 on page 60.

The percentage contribution of transport costs to total logistics costs

COUNTING THE COST

The results of South Africa’s State of Logistics survey

“

61

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R itek Empreendimentos e Prestação de Serviços Lda, better known as Ritek, is a group of companies established in February 2007 in Angola.

It comprises Ritek rent-a-car, a car hire service; the Umosi chain of hotels and holiday resorts in the country; the Flamingo Delicatessen shops; Eco-Agro, an agro-industry enterprise; construction consulting firm Projectecnica; and Kajoca company of import and export.

Ritek is one of the pioneer companies in the Angolan market, with much of its business activities taking place in the capital city of Luanda. The company has enjoyed much success in Angola, with Ritek Rent-a-Car becoming a leader in the car rental industry and having more than four offices scattered across the country.

This business venture achieved sales volumes of about $2500000 in 2008. Ritek Rent-a-car's objective is to satisfy its clients by offering total support when choosing a car; ensuring that the car is in excellent condition and providing 24-hour technical assistance.

Innovation and high quality are the main criteria of the company, in its quest to become a leader in the car rental industry. Continuous innovation is of great importance to the company when achieving all the necessities of the new market. In the hospitality and tourism industry, Ritek has seen much success with the launch of the Umosi Group of Hotels and Resorts.

The first hotel was built in the city of Benguela in the south of Angola, there are also plans to open the first luxury hotel in this city. In the not too distant future the hotel group plans to build units of four- and five-star quality in other parts of Angola such as Cabinda, Huambo and Huila.

On the international arena, Ritek is negotiating the acquisition of hotel units and concessions of land in Mozambique to help expand the business and its client base.

In the agro industry, Eco-Agro is in the process of negotiating a partnership with a Spanish company. With this partnership, Ritek aims to set up agricultural projects in the south of Angola, and also successfully execute its many other planned projects.

Looking at the year ahead , Ritek hopes to see the consolidation of the company in the Angolan market by 2012.

Contact details:Head OfficeRua Leite Vasconcelos No 17 AlvaladeTel: 222 328 474Fax: 222 326 737/ 222 328 232

On the Right tRackin its short time of existence, the Ritek group has enjoyed much success

Luanda, AngolaAdilson Carlos - OperatorBairro Vila Alice - Largo do Bocage 8-9, Luanada, AngolaTel: 222 323 014Fax: 222 322 908Mobile: 923 268 0954

Marcio Filipe - Chief OperatorBairro A Residênce, Rua Itmao EvaristoCabinda, AngolaTel: 231 323 134Fax: 231 323 134Mobile: 926 794 060E-mail: marcioritek@hotmail.com

Cont. on pg. 64

“Future solutions for South Africa’s freight transport skills problems will have to focus on technical skills development”

58 DEVELOPING AFRICA Constructioninvestorsgobigonthecontinent

60 COUNTINGTHECOSTS TheresultsofSouthAfrica’sStateofLogisticsSurvey

72 PUBLICPRIVATEPARTNERSHIPSDEVELOPAFRICANPROJECTS LindaToyiclarifiesthatthemandateofthePPPUnitencompassesthe

partneringwithanddevelopmentofbusinessesorprojectsthatseektomeettheindustrialandinfrastructurechallengesofSouthAfricaandtherestofAfrica

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85

HERITAGE

South Africa has, and always will be a haven to the nature enthusiast. People arrive from the world over

to savour the environmental delicacies available only at this, the southernmost tip of Africa.

Few countries boast not only the array of animals present in South Africa, but also a fl ora range to leave even the most

avid botanist with a sense of euphoria. Its ecosystems are unique, with a wide range of both flora and animal species being indigenous only within its borders.

However, this landscape, while belonging to the people of South Africa, would be non-existent without the help of volunteers, the public as well as private sector.

The South African National Parks organisation (SANParks) has been an instrumental player in not only the general upkeep of national parks, but also in securing much needed funding in order for them to thrive.

The country’s parks even went as far as utilising themselves as a stepping stone to South Africa achieving the hosting of quite possibly its greatest sporting event ever — the 2010 Fifa Soccer World Cup.

In 2007, SANParks gave the then Department of Environmental Affairs and Tourism an undertaking to actively contribute towards the success of the 2010 World Cup. In light of the positive result,

PRIVATE SHIF T FOR THE PUBLIC GOODBoosting, protecting and enhancing South Africa’s national treasures

The South African National Parks organisation (SANParks) has been an instrumental player in not only the general upkeep of national parks, but also in securing much needed funding in order for them to thrive

Female agriculturists are the future of food security

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ENERGY

T he Energy Effi ciency Conference 2009 was held between 17 and 20 August at the Hyatt Regency in Rosebank

Johannesburg. In partnership with Eskom, Africa Energy Journal, Energy Forecast IMIESA and Opportunity publications, the conference aimed to explore effi cient energy saving opportunities and alternatives for reducing energy consumption.

Speakers comprised of people from Eskom, National Energy Regulator (NERSA), Department of Minerals and Energy (DME), Central Energy Fund (CEF), City Power, South African National Energy Research Institute (SANERI), Biotherm Energy, Mandela Metropolitan Municipality, Pan African Holdings, Forst & Sullivan, Ethekwini Municipality, Imbewu Sustainability Legal Specialists, Council for Scientific and Industrial Research (CSIR), and National Cleaner Production Centre (NCPC).

The premise behind the conference was to share ideas on how best to practice energy saving tactics that in today's economic climate has provided an even greater sense of urgency for companies – particularly large energy using companies such as mining companies, construction companies, chemical companies, machinery and packaging companies – to utilise energy more effi ciently and cost effectively.

The areas that were covered in the conference covered issues such as:• reviewing the latest energy tariff

legislation and components from NERSA and DME;

• discussing the Bisasar Landfi ll Gas Renewable Project;

• Assessing the funding criteria and getting a realistic overview of future energy projects in Southern Africa;

• Ensuring improved Clean Development Mechanism (CDM) and Cleaner Production operations and opportunities; and

• Evaluating the implementation processes of the Power Conservation Programme and Independent Power Producer programme developed by Eskom.

The four days were divided into four sectors:Day 1: Evaluating the implementation

process of the Power Conservation Programme (PCP) which was faciliated by Corie Visagie, the General Manager of Demand Gross Management, Eskom.

Day 2: Speakers from NERSA, Biotherm Energy, DME and CEF discussed issues around Energy Efficiency, Legislation, Finance and Demand Side Management.Day 3: Speakers from Biotherm Energy, SANERI, Imbewu Sustainability Legal Specialist, CSIR, Ethekwini Municipality,

Mandela Metropolitan Municipality, NCPC and City Power focused on Energy Conservation, Alternative, Cleaner Production and Carbon Credit Trading.

Day 4: The post conference workshop focused on discussing the necessary challenges, prospectives, regulations and case studies of the Independent Power Producer (IPP) energy projects developed by Eskom.

Africa Oil WeekAnother critical conference is the 16th Africa Oil Week 2009, which will be hosted between 2-6 November at the BMW Pavilion Theatre in Cape Town. Recognised as the continents landmark conference, Africa Oil Week is the world’s largest and most signifi cant exploration and development event on Africa for the global oil exploration and gas-LNG industry calendar with key African government decision-makers, state and national oil company delegations with senior oil executives drawn from across the African oil and gas value chain.

Key events for the conference itself include the 11th Scramble For Africa 2009 on 2 November, the 4th PetroAfricanus Dinner in Africa on 2 November, the 6th African Independents Forum 2009 on 3 November and the 16th Africa Upstream 2009 on 4-6 November.

Conferences getting together to discuss the need for more energy effi cient methods across

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14

FOREWORD

CEO Neren RauSACCI

a s I visit chambers across the country, it bears reminding members that they are part of the largest national chambers movement in South Africa. They are part of a fellowship that extends to almost every part of the country and which

is reflective of every size, sector and business orientation operating in South Africa. In addition to the numerical dominance of the South African Chamber of Commerce

and Industry (SACCI), the chamber is currently arguably the most resolute voice of business.

SACCI represents a voice for:• Economic development and advancement;• Socio-economic transformation; and• Balance between social partners in economic policy dialogue.

This ‘voice’ was recently applied to an assessment of progress made at the 100-day milestone under the Zuma sdministration.

In terms of the policy focus areas assessed, there were improvements in attention to the ecological environment and conservation, infrastructure and the information and communications technology environment and in terms of the ease of doing business, as compared to a March 2009 benchmark. These improvements were driven by a commitment to the correct priorities, strategies and possibly structures to address these challenges.

What we anxiously await are action programmes or plans as well as stronger attention to implementation.

The two areas that fared poorly in the 100-day assessment were the labour and crime and security policy areas. This had less to do with weak attention or prioritisation by the government and more to do with heightened adversity in the business environment in respect of both these areas. The economic crisis was undoubtedly at the heart of the increased negative activity in both these areas.

We had barely seen a curtailing of labour action in strike season before the business environment was accosted by an early crime season.

It is particularly in policies applicable to the areas of crime and labour that new leadership and strategies have to be complemented immediately by bold actions in response to growing challenges.

In recent weeks, the business environment was supported by the announcement of the State’s plans to assist in alleviating stress in the business environment. Notably, the R2.4 billion to be channelled to the national job fund would ease tensions in the labour environment; the R6bn in funding through the Industrial Development Corporation will support ailing enterprises; and the special attention to distressed sectors would benefit both businesses and labour in those environments.

The State’s proposals were strongly welcomed by business and the anticipation of further crisis response programmes was eagerly anticipated. To maximise the benefits of these programmes in the business environment, the government, business and labour have to attend urgently to the effective implementation of the programmes.

FoREWoRD

Tel: (+264 64) 208 2207Fax: (+264 64) 208 2323e-mail: marketing@namport.com.nawww.namport.com

16

EDITOR'S NOTE

S outh Africa is an extremely proud nation for a variety of reasons – for its natural and breath-taking beauty which has brought thousands of international tourists a year to its shores; its myriad cultures and

languages that these same people have had the privilege of experiencing... but mostly because after many years of racial oppression, South Africa now boasts one of the most democratic constitutions in the world where democracy prevails, where all citizens respect each other’s race, creed and religion.

All these elements combined have provided a platform from which the country can enhance and sustain an economy that over the last few months has been battered by the global recession.

Tourism is particularly one of the country’s most lucrative sectors, providing thousands of jobs and empowering many communities to sustain themselves and improve their life’s circumstances.

While we celebrate being a proudly South African nation every day, the one time of the year when all these elements are highlighted, is during the month of September.

The Department of Arts and Culture is the ambassador of all “aspects of South African culture which are both tangible and intangible: creative expression such as music and performances, our historical inheritance, language, the food we eat as well as the popular memory”.

The bedrock of the department’s focus is to nurture South Africa’s sense of national identity through development, preservation and promotion of the country’s art, heritage and culture – the end goal being to drive reconstruction and development to encourage the growth of our country through the understanding that culture is a powerful driver for economic stability, that freedom of expression and artistic creation are key values in our society and that culture is a right to be expressed.

This year, the theme for National Heritage Month is “Celebrating South African Craft, Our Heritage”. This theme is of vital importance because many citizens empower themselves and their families through their creative spirit and their artistic wares. There are approximately 1.2 million South Africans and other related trade sectors who earn a living through creativity. This includes design, the performing arts, dance, film, television, multimedia, cultural heritage, cultural tourism, the visual arts, the crafts, music and publishing.

All these factors come together to make an intrinsically South African brand which even extends to our national flag – not simply an icon depicting the new South Africa, but a symbol of a country able to move forward by building a nation and providing a brighter future for all through economic enhancement.

Happy Heritage Month!

Tracee HarvardEditor

ED’S notE