�ou have a great idea for a business and you want to begin. Where doyou start? We’ve discussed the advantages and disadvantages of starting a business from scratch. Be aware that a large percentage of newbusinesses fail. You need to be honest with yourself in evaluating whether you

have the right personality for taking on a project of this sort.

The most important thing you can do to prepare for your business is to develop a thor-ough business plan. With this plan you will be able to see the strengths and weaknesses

of your business and make deci-sions accordingly. It is helpful atthis point to get some professionalassistance, someone who canlook at your business plan objec-tively and provide ideas andinsights. Organizations that pro-vide free or low-cost assistanceare available in mostareas......continued page 2

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Two recent reportson theimplementation ofBlack EconomicEmpowerment drewvarying conclusions.One was by theBlack BusinessWorking Group,overseen by Peter Vundla, and theother by KPMG, handled by SandileHlophe. Chris Barron asked themsome questions...page 5

State helps with costs if you train on the job.These include tax rebates of up to R50000,cash discretionary grants of up to R20000and even grants to supply tools andequipment....continued page 3

Tenants’ rights take precedenceChange of ownership is often unsettling for a tenant. Is thenew owner going to increase the rental? Will he terminatethe lease or require a new lease to be signed? [ Full Story...]

HOUSE PRICE GROWTH SLOWS

A nominal house price growth of 14.5% year-on-year (y/y) was recorded in July in themiddlesegment ofthe marketfrom 14.9%in June,according thelatest AbsaHouse PriceIndex.

WHATS A CLOSE CORPORATION

A close corporation is much the same as a privatecompany. It is a legal entity with its own legalpersonality and perpetual succession. The ownersof the close corporation are the members.Members do not hold shares but have an interestin the close corporation. The interest is expressedas a percentage. Membership as a rule isrestricted to natural persons. The maximumnumber of members is 10.

Some advantages:• It is relatively easy to organise.• The life of the business is perpetual (i.e.continues after members die).• The members have limited liability (i.e. theyare not personally liable for the business debt).• The transfer of ownership is easy.• Fewer legal requirements .

Some disadvantages:• Special taxation rates.• More legal requirements than a soleproprietorship or partnership.

Do you know your rights? Can your employer fireyou without giving you any notice? Are you entitledto pay or benefits if you’ve been disabled or havebecome sick? There are numerous places and lawsthat offer you protection as an employee. Theseinclude the CCMA as well as the Labour Relationsand Basic Conditions of Employment Acts. Read onto find out what exactly your rights are when youbegin or end a job. ....continued next page

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September 10th-14th/2007 @ R5www.smmenews.co.za

EDITORIAL & COMMENTARY

September 10th-14th/2007 www.smmenews.co.za

�ave you ever foundyourself knowingexactly what youneed to do about

marketing your business...and then not doing it? You arenot alone. Many self-employed professionals findthat the hardest part ofmarketing isn’t figuring outwhat to do. What’s hard isactually doing it.Marketing yourself can be aconfronting process. Makingphone calls to strangers,writing marketing letters, andtalking about yourself andyour accomplishments canbring up fear of rejection,harsh commentary from yourinner critic, feelings ofincompetence, and thediscomfort of performingunfamiliar activities. If you letthem, these inner saboteurscan stop you dead in yourtracks.

The good news is that youdon’t have to completelyeliminate these internalroadblocks in order to moveforward in marketing.

It is possible to feel afraid oruncomfortable and still takeuseful action despite thepresence of these feelings.Here are ten ways to quickly

break through internal barriersand get your marketingunstuck.

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When you’re feeling blockedfrom moving forward,remember why you wanted togo there in the first place. Whatwas your original vision of thebusiness you are trying tobuild? Who will your workbenefit? What fulfillment orsatisfaction will it provide you?Write down your vision of asuccessful business, or ifyou’ve written it down before,pull it out and re-read it. Allowyour own words to re-inspireyou to do the necessary hardwork.

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Sometimes your vision mayseem a bit too far off, and youneed some more immediategratification. Choosing toreward yourself for a job welldone can provide you with apositive near-term benefit foreffort that might not pay off for awhile. Promise yourself simplerewards for completing difficultmarketing chores like makingfollow-up calls or writing Website copy. The prospect of aspecial dinner, a movie with

your significant other, or a newgadget for your favorite hobbycan help you to push past theblocks and get things done.

Rewards don’t even have tocost money. Sometimes thepromise of a bubble bath, walkin the park, or an hour readinga good book is all the incentiveyou need to take on a toughmarketing challenge.

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Often when you’re feeling stuck,what’s going on in your head isa conversation with your innercritic, who seems to have a lotto say about sales andmarketing. It’s difficult to workon promoting yourself whenyou are hearing a constantstream of comments like:“You’re not good enough,”“They won’t like you,” or “Whodo you think you are?”

It can help to remember that theinner critic often says thingsthat simply aren’t true. One wayto counter this negativedialogue is to respond with theobjective truth. For example:“Clients tell me I’m good atwhat I do,” “Many people saythey like me quite a bit,” or “I’ma competent professional,thank you very much.” When

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When you’re feeling blocked from moving forward,remember why you wanted to go there in the firstplace. What was your original vision of thebusiness you are trying to build? Who will yourwork benefit? read on...........

By Tony Dlamini

�elcome aboard,here its,theinaugral issue of SMMENews newspaper,a uniquenewspaper by Widgetrade

407 C .It aims to raise awareness on thesocial-economic role that small enter-prises play in job creation,poverty allevia-tion and employment equity in ourcponurty.

The layout and content is unique andsimple in that we start with an inspiringtrue account on how a simple idea couldturn into a multi-million buisness venture.This is covered in our column ‘ManagingYour Buiness”..

We have also not forgotten that any goodbusiness venture requires constant guideand advice and all that is found in “BehindThe Scene “

We all know the importance of technologynot only in our daily lives but also in ourbuisness management.”The TechnologyWorld” gives you advice and informationon hoew to boost your revenue,create effi-ciency and also increase productivity. Thisa must to read.

However, how do you go into all that ? Howdo you translate your buiness idea into abusiness venture ? “Business Start-UpsCorner” is the ideal page for any buddingsmall entrepreneur to get the necessaryinformation thats needed in taking youridea off the note book to a vibrant venture.

We also covered issues related to carreropprutunities,taxation matters,tenders,around uo of weekly buiness news plusmuch much more.As you read through the features and ar-ticles, you will understand why SMME is animportant player in our economy.

We hope you find this inaugral issue notonly informative but also interesting to readEnjoy your reading,the journey begins...itwill be worth every page q

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SMME News The Heart Beat of The Small Enterprises 10th Sept. 2007-16th Sept. 2007 ��������

WIDGETRADE 407 CC t/aPHUMELELA PROJECT ADMINISTRATORS

Suite 1130, Commercial City Building, 40 Commercial Road, Durban, 4001P.O. BOX 3897, DURBAN, 4000

Tel.: 031- 307 6803, Cell :073 416 5576

Fax : 031 – 307 7803 or 086 650 0615

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TOURISM KZN hassecured 200 squaremetres of space forIndaba 2007, asubstantial increase onthe previous year. Indabaco-ordinator, NomikaSingh said this wasbecause the organisationwould accommodate 18SMMEs (small, mediumand micro) operators in2001.

“We want to create theplatform for all product inthe province. The SMMEshave been selected bytheir specific districtmunicipalities and are

made up ofaccommodation owners,community co-operatives,tour operators andtourism routes. They willbe given assistance withmarketing material,accommodation,transfers and training. “Singh said there would beother innovative featuresincluding the printing of aKZN newsletter on theKZN stand daily.

She said one of thehighlights of Indaba 2001would be a gala culturalevent planned by theLubombo SDI on April 29.

Other events include theAA Travel Guide awardson April 22 and the annualIndaba Awardspresentation on April 23.

The SDI would alsooccupy space on the KZNprovincial standshowcasing the latestdevelopments in the StLucia area. The TKZNstand will again bedesigned by IDG’s LydiaHirschmann and will aimto bring the Kingdom ofZulu branding “alive”incorporating the 5 Bs -the Berg, Bush, Beaches,Battlefields and Buzz.

SMMEs given more space at Indaba 2007

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�lthoughexpecting SA’smarkets tocontinue to be

rattled in the near term byongoing jitters, Moody’sEconomy.com says itdoes not anticipatecapital flight to become apermanent feature giventhe economy’s ongoingattractiveness to yield-hungry investors.

However, they also pointout that over-exposure toforeign financial inflowsremains a key risk toeconomic growth.

They add that the rand isexpected to regaintraction against most ofthe major currencies incoming months, drawingsuccor from a return offoreign portfolioinvestment as globalfinancial marketsstabilise.

The short-term picture,though, is likely to beclouded by internationalcredit jitters and ayawning current accountdeficit locally.

“Although the randreceived a lift from

stronger precious-metalprices, with gold lingeringnear six-week high levelsand platinum rising toone-month highs, the localcurrency unit remainsunder pressure ahead ofthe release of thecountry’s current accountnumbers next week,” saythe analysts.

As a percentage of GDP,South Africa has one ofthe largest currentaccount deficits amongits emerging-marketpeers at 7.0% of GDP,and as high as 7.8% of

GDP in the fourth quarterlast year.

The Moody’s Economyanalysts explain thatalthough strong portfolioflows into local stock and

bond markets during thesecond quarter willcontinue to finance thered ink, this flood ofinvestment, combinedwith the current account

��������������������� ����For only the second time in his eightyear career as finance minister TrevorManuel has tabled a specialadjustment estimates bill in Parliamentto cover unexpected demands formoney which were not appropriated atthe time of this year’s Budget, andwhich cannot wait until the normal timeof year for adjustments in December.

The last time it happened he brought in a bill in order todeal with a particular flood disaster. This time it is todeal with demands being made to support Alexkor, Sentech, the Land Bank,Denel, the Pebble Bed Modular Reactor (PBMR) project and the 2010 World Cupdevelopment. Cash was set aside in the contingency fund to finance 51 per centof the capital requirements of the PBMR project, subject to an acceptablebusiness plans.

Mr. Trevor Manuel

••••• Business News

Weekly round up of breaking-news

issues related to SMME sector...

.......page 5

••••• Managing Your Business

Tips and information on how to run

and managing an enterprise

successfully. ....

....page 9

••••• Technology World

Importance of technology, how to use

to boost revenue, create efficiency

and increase productivity....

.....page 14

• Behind The Scene

Secrets to Business

Success....

....page 18

• Ask The Lawyer

Forum for the small entrepreneur to ask

any question on legal matters related to

business and a contributing lawyer would

provide the answer for the benefit of all

readers.....page 19

••••• What It Takes (SMMEs success stories)

An inspiring account of how a humble

beginning of a small enterprise became a

success story...

.....page 12

SMME News The Heart Beat of The Small Enterprises 10th Sept. 2007-16th Sept. 2007 �������

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Internet Solutions (IS) areaggressively targeting thesmall business and resi-dential market with theirADSL offerings, taking onTelkom in their own backyard. IS, traditionally seenas a purely corporateservice provider, venturedinto the wholesale ADSLarena around a year agowith promising results.Over the last few monthsIS signed up an average of

400 new business ADSLcustomers and around 900new residential ADSLcustomers. IS now hasover 23 000 ADSL userssubscribing to their cappedsolution and 6 000 busi-nesses using theiruncapped ADSL solutions.

According to AnthonySouthgate, MarketingExecutive at IS, the serviceprovider is focused on

providing value-for-moneysolutions to the SMME andresidential markets. “Themain objective of thebusiness unit is to providequality broadband servicescoupled with value-addedservices to the SMMEmarket,” he said.

Southgate is confident thatthe growth will continue inthe South African SMMEbroadband space.

“An ongoing demand forbroadband connectivity aswell as new innovations isexpected to producecontinued and substantialgrowth in the SMME spaceas we head into 2007,” hesaid. “For example, smallercorporates and SMMEswho in the past have beenunable to afford VirtualPrivate Network (VPN)connectivity to their smallerbranches, now have the

Internet Solutions targeting SMME marketoption of using the ISBroadband VPN service toallow secure, high speedand reliable inter-branchconnectivity,” Southgateconcluded.

Themba, a hair salon owner and distributor ofhair products, lost a stylist to HIV/AIDSrecently. His profits are down due to persistenthealth problems of both customers and staff.Sifiso, a builder, had to pay all funeral costs forhis two sons, whom he employed, and adaughter-in-law, after they died of AIDS-relatedillnesses. He is now responsible for twograndchildren …

Scenarios like these are commonplace insmall businesses around the country.

Worldwide, micro, small and mediumenterprises provide the most jobs, yet remainon the margins of the economy. In SouthAfrica, the gulf between the informal andformal economy is vast and likely to remain sogiven the legacy of apartheid, persistentpoverty and the impact of HIV/AIDS.

Research shows that South Africa’s very smallbusiness entrepreneurs, lacking access toeducation, opportunity and finance, andtrapped in a cycle of poverty, are highlyvulnerable to the impact of HIV/AIDS. One infive adults employed in small businesses onthe sub-continent is HIV-positive.

In partnership with the International ExecutiveServices Corps (IESC), SABCOHA is nowrunning BizAIDS, a programme offeringvaluable skills training to small businesses tohelp them strengthen and grow theirenterprises and buffer themselves againsthealth-related emergencies like HIV/AIDS.

Originally developed by the IESC for smallbusinesses in Zambia, BizAIDS, a workshop-based programme, is now being runsuccessfully in several provinces around thecountry. With funding from DFID, BizAIDS wasintroduced in South Africa in 2004, and modifiedto suit the needs of local participants. It hascontinued to grow from strength to strength. Bythe end of 2007 a total of 1,000 people will havegone through the 12-hour training programmehere.

“Training has in the main been very well-received,” says BizAIDS project manager DarylWearne. “As we know with all training - notevery shot is a coconut. You do get theprofessional workshop goers who do notalways implement what they learn. However,this is why we do follow-up interviews and we

find that quite a few people have made dramaticshifts in the way they do things.” Follow-upresearch shows that 87 percent of the 23,000people trained together in Zambia and SouthAfrica have gone on to use the knowledge theyacquired.

The programme has three key components -business (strengthening and growing theenterprise), legal (company registration, record-keeping, employees rights, will making) andhealth (HIV/AIDS awareness and training ofbusiness owners). The workshops aredesigned for both literate and non-literateaudiences and a board game to make theinformation more accessible is in the offing.Participants leave the training armed withworkbooks and a resource guide on accessingHIV/AIDS information, legal, business-relatedand other information.

Wearne says the strength of the programme isits “business training” component which is apowerful drawcard. “In some places there isAIDS fatigue. But what intrigues our participantsis the name. You find people keen to take partbecause they want business training.

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Current trends in the commercial propertymarketplace show a move away fromtraditional office space towards a moremodular approach. Because of the fastgrowth experienced by especially SMMEs inSouth Africa, it has become necessary forSMME owners to think more short andmedium term rather than long term whenconsidering leasing office space.

Conventional leases bind the lessor to threeyears occupation of space which mightbecome too small or inadequate toaccommodate and support businessdevelopments. Results of this inflexibility ofconventional lease periods includesuppressed business development and

growth, unnecessary costs incurred, anunproductive working environment etc.

Another vital consideration should be thelocation of and facilities available at the soughtoffice space. The location of a businessinfluences its image and networkingopportunities and therefore has a direct impact,whether negative or positive, on the bottomline. Before deciding on a location SMMEowners should consider the age of the targetbuilding and surrounding environments and thepossibilities for upgrading the current facilitiesto match and compete with internationalstandards. For a small business to establish ordevelop these facilities can become a veryexpensive exercise. It is also these start-up or

upgrading costs that are overlooked whenbudgeting for new office space.

In making use of serviced and furnished officespace, SMMEs can cut monthly officemanagement costs considerably, especiallyover periods longer than six months. Suchservices also provides the benefits ofestablished office management procedureswith professional staff catering for a smallbusiness’s every need at less than the cost ofemploying an office PA.

In selecting the provider of such serviced andfurnished offices space, care should be takento ensure that the working environment will beconducive towards promoting productivity and

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SMME News The Heart Beat of The Small Enterprises 10th Sept. 2007-16th Sept. 2007 ��������

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SMME News The Heart Beat of The Small Enterprises 10th Sept. 2007-16th Sept. 2007 ��������

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Sales Manager/ Executive

10-15K Basic+ comm, med aid, cell and car allowance. Musthave 5yrs exp with proven sales track record. Send CV toinfo@winstel.co.za or fax to 011 485 1925

FREEDOM HOUSE SOUTHERN AFRICA

FREEDOM HOUSE SOUTHERN AFRICA Johannesburg, SouthAfricaPlease send CV and letter of interest to: Vukasin Petrovicvpetrovic@freedomhouse.org Tel: 011 482 7362/

MONTAGUE GARDENS 100m

MONTAGUE GARDENS 100m Warehouse/Office Space to let insecurebusiness park - R4 500pm. Ph Victor 082 445 2198

PRIMA PERSONNELOur client, a blue

PRIMA PERSONNELOur client, a blue chip FMCG company, is seeking toemploy qualified people in the following positions: 1. Regional SalesManager 2. Key Account

NKANDLA MUNICIPALITYASSISTANT

NKANDLA MUNICIPALITYASSISTANTDIRECTOR:INFRASTRUCTURAL DEVELOPMENTSalary: R 249600.00 p.a.Key Requirements: National Diploma in Civil Engineering,BSc or equ

CARRINGTON Heights: Lovely 3 bed

CARRINGTON Heights: Lovely 3 bed house, 11/2 bath, very secure,high walled, auto gates, parking for 4 cars, LUG, fully aircon,oregon timber floors, R5000. -

NEED Reliable 24hour protection

NEED Reliable 24 hour protectionguard. Masino Security. Call 0786353462

VOLVO S40 2.4, 2006,immaculate, 21

VOLVO S40 2.4, 2006, immaculate, 21000 kms, balance of motorplan R175000. Tel. 0824497

22005 Opel CorsaClub 1.4 75000KM2005 Opel Corsa Club

1.4 75 000KM bin lining, mags, a/c, p/s, R73 000 Phone 083 262 6359.81

DALESBROSAUCTIONSALESETHEKWINI

DALES BROSAUCTIONSALESETHEKWINI MUNICIPALITYCITY FLEET DIVISION ON SITE 143PENDLEBURY ROAD, MOBENI 22AUGUST 2007 @ 10.30a.m.TIPPERS, COMPACTORS &CRANE TRU2001 Toyota Tazz 130 Sport, Autumn,

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ISUZU Frontier 1999 280DT LX,

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Strategic UK Land InvestmentsSales

Strategic UK Land InvestmentsSales ProfessionalsTake your career tothe next levelSouth Africa’s fastest growing International PropertyInvestment Company is ex

2003 GOLF 4 GTI 1.8T.Doctors Car,

2003 GOLF 4 GTI 1.8T. Doctors Car, Mint cond. S/r,heated seats and ext warranty. TV/Dvd/MP3 player.F/H. 104 000 kms. R134 000 onco. - 084 572 894

JOHN Ross 2 beds,fitted main bed,

JOHN Ross 2 beds, fitted main bed,standard kitchen, parking. R420 -000Phone 0827592657

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SMME News The Heart Beat of The Small Enterprises 10th Sept. 2007-16th Sept. 2007 ��������

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CITY OF uMHLATHUZETENDER NO

CITY OF uMHLATHUZETENDER NO 8/2/1/268Tenders are herebyinvited for the design, manufacture, delivery, construction, erectionand commissioning of the replaceme

DEPARTMENT OF WORKSETHEKWINI

DEPARTMENT OF WORKS ETHEKWINI REGIONAward of BidsZNTD00375W: KWAZULU-NATAL: KWAMASHU: MZUVELE HIGH SCHOOLSTORM DAMAGE The abovementioned Bid has been awarde

DEPARTMENT OF WORKSETHEKWINI

DEPARTMENT OF WORKS ETHEKWINI REGIONAward of BidsZNTD00375W: KWAZULU-NATAL: KWAMASHU: MZUVELE HIGH SCHOOLSTORM DAMAGE The abovementioned Bid has been awarde

ENGINEERINGTuesday, 19September @

ENGINEERINGTuesday, 19 September @ 10h30, Kilo Street,Middelburg(A division of the JBR Investment Group)2 x Seguro 6mm/3.2m & 8mm/3.2m Guillotines, Seguro 160t

DEPARTMENT OF HEALTHCENTRALSUPPLY

DEPARTMENT OF HEALTHCENTRAL SUPPLY CHAIN MANAGEMENTDIRECTORATE BIDS ARE INVITED FOR THE UNDERMENTIONEDREQUIREMENTS OF THE PROVINCIAL HEALTH KwaZulu-Natal ADMI

Call for Proposals Tender No:

Call for Proposals Tender No: 8/2/1/86Appointment of a Consultant forthe design and installation of new electrical infrastructure andelectrification of Housin

ERRATUM Tender no.

ERRATUM Tender no. NSSS/01/2007Pleasenote that the abovementioned tender, asadvertised in this paper a week ago, ishereby withdrawn until further notice. We

UmasipalaWasolundiUlundi

Umasipala WasolundiUlundi MunicipalityBidNo.: 02/2007-2008Supply, Delivery & Off-loading of Electrical Stock for the periodending 30 June 2008.Bids are hereby

Invitation toTenderMaintenance of

Invitation to TenderMaintenance of GroundPower UnitsAirports Company South Africa(ACSA) invites companies to tender for themaintenance of the 400Hz ground po

Call for Proposals Tender No:

Call for Proposals Tender No: 8/2/1/86Appointment of a Consultant forthe design and installation of new electrical infrastructure andelectrification of Housin

TENDER NOTICESedibengWater is

TENDER NOTICESedibeng Water is awaiting tenders for thefollowing: Tender TC 5/2007: Upgrading of ExistingBalkfontein Pump StationTenders are hereby invited fo

Tender Notice andInvitation to

Tender Notice and Invitation toTenderReference No. JDA 015.8/CN151Request For Proposals (RFP) forMarkerting/Branding Service Providers TheJohannesburg Develo

SEDIBENG DISTRICT

SEDIBENG DISTRICT MUNICIPALITYSuitablyqualified service providers are hereby invitedto submit proposals on the following: Bid No.Description 8/2/2/38-2007 Pr

REQUEST FOR PROPOSALRFP No.

REQUEST FOR PROPOSALRFP No. GT/GDH/113/2007CATERINGSERVICE AT EAST RAND TB HOSPITAL FOR A PERIOD OF TWOYEARSRFP documents are obtainable at no cost from the T

Invitation to TenderMaintenance of

Invitation to TenderMaintenance of Ground Power UnitsAirportsCompany South Africa (ACSA) invites companies to tender for themaintenance of the 400Hz ground po

Invitation toTenderMaintenance of

Invitation to TenderMaintenance of GroundPower UnitsAirports Company South Africa(ACSA) invites companies to tender for themaintenance of the 400Hz ground po

TENDER NOTICESedibeng Water is

TENDER NOTICESedibeng Water is awaiting tenders for the following:Tender TC 5/2007: Upgrading of Existing Balkfontein PumpStationTenders are hereby invited fo

TENDER NOTICESedibengWater is

TENDER NOTICESedibeng Water is awaitingtenders for the following: Tender TC 5/2007:Upgrading of Existing Balkfontein PumpStationTenders are hereby invited fo

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