The information provided in this volume is designed to provide an introduction to the opportunities and challenges
of ‘private entrepreneurship on SME level’ in the country specified. Exchange vzw. has compiled the information and
the references from various public and formal sources, as well as from its own activity, research and experience in the
country. The ambition is to give insights, not to provide a complete economic or legal guide to the private sector. The
information is continuously updated and
completed. Exchange vzw. can not be held responsible for errors, omissions or lack of accuracy and disclaims any liability in connection with the use of this information.
Feedback is welcome at info@exchangevzw.be
Table of contents – Country Strategy Paper – South Africa
Introduction ... 3
Economical situation ... 3
Political situation ... 5
B-‐BBEE -‐ Broad-‐Based Black Economic Empowerment ... 7
Safety situation ... 8
Strategy for economic development of the local government ... 8
Synergy ... 11
Exchange Strategy in South Africa ... 15
Representation and Economical missions ... 17
Belgium ... 17
Flanders ... 21
Brussels ... 24
Wallonia ... 25
Belgium in Africa ... 27
Europe ... 28
General information ... 30
South Africa Economic Outlook ... 30
Doing Business in South Africa 2018 ... 33
The number of SAs poor could be reduced ... 37
Entrepreneurship ... 38
Exporting to South Afrika ... 38
South Africa -‐ Political Environment ... 40
South Africa -‐ Openness to, & Restriction Upon Foreign Investment ... 40
Limits on Foreign Control and Right to Private Ownership and Establishment ... 41
South Africa -‐ Bilateral Investment Agreements & Taxation Treaties ... 42
South Africa -‐ Corruption ... 42
Starting a business as a foreigner in South Agrica ... 43
South Africa -‐ Political Environment ... 46
South Africa -‐ Market Challenges ... 46
South Africa -‐ Market Opportunities ... 47
Connectivity redefined ... 48
Info Business Development Managers ... 48
Introduction
This document is a practical guide for South Africa and a strategy for our work in this country.
Information in this document is partially based (part II to IV) on existing information (country papers FIT, JCA and JSF from the Belgian development organisations etc.), that are joined in annexes to this document.
This ‘country strategy paper’ is a working document that is drawn up by the relevant South team and its programme manager in the North (part V to VII).
This document will be reviewed annually (particularly section VII) and amended if changing circumstances require it.
The final goal of this document is not only to offer our applicants a better service with long term impact. The goal is also to create more visibility for Exchange in the country as well as creating a larger network encompassing our partners and stakeholders in North and South.
At the beginning of each work year the relevant South team and its programme manager in the North will update this document with the most recent figures and will adjust the strategy of Exchange in the country if necessary.
List of abbreviations: FIT (Flanders Investment & Trade), JSF (Joint Strategic Framework), JCA (Joint Context Analysis), NGA (Non-‐Governmental Actor)
Economical situation
Facts & Figures GDP: 351 miljard USD GDP/Capita: 5.718 USD
Number of habitants: 55,91 million (mid 2016) Inflation: 6.462 %
Unemployment: 27,7% (2017 Q1) Growth/decline GDP: -‐0,7% (2017 Q1))
Economic share of sectors in GDP:
Source: http://www.statssa.gov.za/
Exchange rate : 1 EUR = 14.4167 ZAR
Total import: $80,8 B (2015) Total export: $93,7 B (2015)
Main import products: crude petroleum, refined petroleum, cars, computers, gold.
Main export products: gold, diamonds, platinum, coal briquettes, cars.
Most important suppliers (import): China, Germany, the United States, Nigeria, India
Most important export destinations: China, the United States, India, the United Kingdom, Germany.
(source: http://atlas.media.mit.edu/en/ the observatory of economic complexity) Summary of the economic situation
• Economic growth decelerated to 0.3% in 2016 although it is expected to rebound to 1.1% in 2017 and higher in later years.
• Growth prospects will be driven by moderately stronger global growth, more favourable weather conditions, reliable electricity supply, less volatile labour relations, recovering business and consumer confidence, and stabilising commodity prices.
• The industrialisation strategy is geared towards promoting entrepreneurship, which will also help to generate employment.
Economic growth at 0.3% in 2016, is expected to rebound from 2017 onwards as several limiting factors are receding, creating an opportunity for a new growth cycle. Key structural bottlenecks are being addressed including power shortages. Eskom has moved from an electricity shortage of 3 000 MW, which precipitated a series of power outages in 2015, to a surplus of 3 000 MW in 2016.
Moreover, the government remains committed to working with the private sector, labour and civil society to promote inclusive growth and economic transformation.
The real effective exchange rate of the Rand appreciated by 23.6% between January and December 2016. Although this resulted in deterioration in the competitiveness of local producers in foreign markets, at its most recent levels the currency was still 9% below its average value of the past 15 years in real terms. Inflation breached the monetary policy target range, reaching 6.4% in 2016. Driven by higher food prices, rising world oil prices, and domestic fuel prices, headline inflation is expected to breach the policy target range again in 2017 reaching 6.1%. Monetary policy has been tightened to curtail inflation and inflationary expectations from rising amid monetary policy tightening by the US Federal Reserve. The monetary authorities increased the policy interest rate to 7% in March 2016. Due to higher interest rates and subdued investor confidence, growth in the demand for credit by the private sector fell to 5.11% in December 2016 from 10.17% in December 2015.
National government revenue increased by 11.6% in fiscal year 2015/16 reaching R1.069 trillion or 26.1% of GDP. The increase was driven by higher receipts in most major tax categories, particularly taxes on property, international trade and transactions, and non-‐tax revenue.
Unemployment remains a major social challenge with youth unemployment among the highest on the continent. Commendable progress was made in addressing absolute poverty in the past decade primarily through extensive social safety net programmes. Nonetheless, the government continues to face challenges to effectively deliver basic economic and social services in rural areas and the townships.
South Africa’s industrialisation and employment-‐generation strategy aims to encourage entrepreneurship. Nonetheless, success has been limited due to inadequate technical and business management skills; lack of experienced mentoring of entrepreneurs; barriers to business entry, and lack of access to finance.
(source: http://www.africaneconomicoutlook.org/en/country-‐notes/south-‐africa, the same source used by FIT)
Key sectors
The finance sector is the biggest sector in the South African economy (20,1%), followed by government sector (17,2%) and trade sector (14,7%). Tourism (3,1%), ICT (2,7%) and agriculture (2,4%) are the smallest sectors.
Political situation
The Republic of South Africa is a parliamentary representative democratic republic. The President of South Africa, serves both as head of state and as head of government. The President is elected by the National Assembly (the lower house of the South African Parliament) and must enjoy the confidence of the Assembly in order to remain in office. South Africans also elect provincial legislatures which govern each of the country's nine provinces.
Since the end of apartheid in 1994 the African National Congress (ANC) has dominated South Africa's politics. The ANC is the ruling party in the national legislature, as well as in eight of the nine provinces (Western Cape is governed by the Democratic Alliance). The ANC received 62.15% of the vote during the 2014 general election. It had received 62.9% of the popular vote in the 2011 municipal election.
The main challenger to the ANC's rule is the Democratic Alliance, led by Mmusi Maimane (previously Helen Zille), which received 22.23% of the vote in the 2014 election. Other major political parties represented in Parliament include the Economic Freedom Fighters and the Inkatha Freedom Party, which mainly represents Zulu voters. The formerly dominant New National Party, which both introduced and ended apartheid through its predecessor the National Party, disbanded in 2005 to merge with the ANC.
Jacob Zuma is a South African politician, who was the leader of the ANC between 2007 and 2017. From 9 May 2009 to 14 February 2018 he was president of South Africa. He is the most colourful and controversial president South Africa has had since white-‐minority rule ended in 1994. He was born into poverty, went into exile to fight apartheid and has been embroiled in a series of scandals, which would have ended the careers of many politicians. His poor roots, charisma and strength in adversity partly explain his ability to hold on to power, despite calls for his resignation and attempts to oust him as ANC leader.
His credibility was most severely damaged in March 2016 when South Africa's highest court ruled that he violated the constitution by failing to repay the government for money used on upgrading his private residence, including building a cattle enclosure, amphitheatre, swimming pool, visitor centre and chicken run. The president apologised to South Africans for the "frustration and confusion" caused by the scandal vowed to pay the money.
Mr Zuma's private life has also grabbed the headlines, and has caused much controversy. The 73-‐year-‐
old is a proud polygamist -‐ following a Zulu tradition -‐ and currently has four wives. He is also known for his infidelity and has fathered a child with another woman.
His political career was written off in the run-‐up to the 2009 election when he was simultaneously battling allegations of rape and corruption. He was acquitted of rape, though the corruption case has proved harder to shake off. He always denied charges of money-‐laundering and racketeering, stemming from a controversial $5bn arms deal signed in 1999 and had said he would resign if found guilty of wrong-‐doing. The case was controversially dropped by the National Prosecuting Authority (NPA) just weeks before the elections which saw him become president. Some seven years later, the opposition is still fighting for the charges to be reinstated and has asked the courts to review the NPA's decision. There is yet to be a ruling.
Mr Zuma's modest upbringing and promotion of traditional family values are seen as a major factor in his enduring popularity among many poor South Africans, especially in rural areas.
He joined the ANC at the age of 17, becoming an active member of its military wing, Umkhonto We Sizwe, in 1962. He was convicted of conspiring to overthrow the apartheid government and imprisoned for 10 years on the notorious Robben Island, alongside Mr Mandela.
Mr Zuma, popularly known as "JZ", is said to have helped keep up morale among the incarcerated ANC grandees with songs and impromptu theatre -‐ it was that comical nature which endeared him to ordinary South Africans before his elevation to the presidency. After being freed from prison, Mr Zuma left South Africa, living first in Mozambique, then Zambia, as he rose through the ANC ranks to the executive committee. He became one of the first leaders to return home in 1990 -‐ when the ban on the ANC was removed -‐ to take part in negotiations with the white-‐minority government.
While trying to oust Mr Mbeki (President from 1999 to 2008), he enjoyed strong support among trade unionists and the communist party -‐ an ANC ally -‐ as they believed he would redistribute South Africa's wealth in favour of the poor. However, Mr Zuma has not changed South Africa's economic policy and many of his erstwhile allies, have since dropped him, accusing him of not doing enough to help the poor and of presiding over a corrupt government.
His private life has not helped this impression. Married six times in total, Mr Zuma has 21 children and has married twice since becoming president in lavish traditional ceremonies in Nkandla. One of his wives, Mozambican Kate Mantsho, took her own life in 2000, while his ex-‐wife, Nkosazana Dlamini-‐
Zuma, is now chairperson of the African Union commission.
In 2006, Mr Zuma was acquitted of raping an HIV-‐positive family friend, but his statement during the trial, that he showered after unprotected sex with the woman to guard against possible infection, provoked ridicule. Four years later, he admitted that he had had a baby with the daughter of another family friend. He was again accused of undermining the government's HIV/Aids policy, which urges people to be faithful and use condoms. But as president he won over many critics and activists when he announced a major overhaul to the country's Aids policy in December 2010 -‐ this has seen a drastic increase of the roll-‐out of life-‐saving anti-‐retroviral (ARV) drugs. South Africa has an estimated five million people living with HIV -‐ more than any other country. Mr Mbeki had denied the link between HIV and Aids and his government had always said ARV drugs were too expensive to distribute to all who needed them. But that has been one of Mr Zuma's few unqualified successes.
The economic situation has been worsening, and there were almost daily protests by people demanding better basic services such as housing, schools, water and electricity.
Zuma stepped up on Wednesday the 14th of February 2018 after a weeks-‐long discussion in parliament and within the ANC about his position. The president was under discussion because he was accused of favouritism and corruption.
Cyril Ramaphosa was sworn in as president of South Africa on Thursday the 15th of February 2018.
Ramaphosa, vice president under Jacob Zuma since 2014, is the fifth South African president since the end of apartheid.
Not everybody was happy with the ANC’s choice to fill South Africa’s highest office. The opposition EFF (Economic Freedom Fighters) walked out of parliament ahead of the ceremony to appoint Mr
Ramaphosa. According to party leader Malema, ANC Zuma supported corruption scandals and the party would not behave differently with a new president. After his appointment, Ramaphosa said that tackling corruption in government institutions is high on his list of priorities.
In recent months, Ramaphosa led the camp within the ANC that Zuma wanted to have. In December 2017 he struck a major blow by winning the party presidency of the ANC. At the election for the spot, Ramaphosa narrowly defeated the representative of the camp Zuma: his ex-‐wife Nkosazana Dlamini-‐
Zuma. Ramaphosa soon spoke out in public against the corruption within his party.
Cyril Ramaphosa, the man who had to wait 20 years to become president, was an important figure in the seventies and eighties in the fight against apartheid. He was among other things the head of the influential miners union. When the ban on the ANC was lifted in 1991, the party appointed Ramaphosa as Secretary-‐General. After the end of apartheid in 1994, he went into parliament on behalf of the party.
In the late 1990s, Ramaphosa left the ANC after losing the battle for Nelson Mandela's succession to Thabo Mbeki. He entered business and became a millionaire. The incoming president of South Africa was a member of the board at the mining company Lonmin, when in 2012 34 striking miners of that company were shot by the police. In 2014 Ramaphosa was elected vice president.
B-‐BBEE -‐ Broad-‐Based Black Economic Empowerment
Broad-‐Based Black Economic Empowerment (B-‐BBEE) aims to ensure that the economy is structured and transformed to enable the meaningful participation of the majority of its citizens and to further create capacity within the broader economic landscape at all levels through skills development, employment equity, socio economic development, preferential procurement, enterprise development, especially small and medium enterprises, promoting the entry of black entrepreneurs into the mainstream of economic activity, and the advancement of co-‐operatives. B-‐BBEE needs to be implemented in an effective and sustainable manner in order to unleash and harness the full potential of black people and to foster the objectives of a pro-‐employment developmental growth path.
This is what you need to know about BBBEE when doing business in South Africa Entrepreneur Magazine – Aug 23,2016
• South Africa went through a system of racial segregation from 1948 until 1994 called Apartheid (Afrikaans word meaning “separateness”) where race determined social, economic and political advantages or disadvantages.
• In 1994 South Africa elected its first democratic government which launched BBBEE (Broad-‐Based Black Economic Empowerment) in 2003 as a racially selective program to empower previously disadvantages groups and enhance economy.
• The mandate of Broad-‐Based Black Economic Empowerment is to increase the number of black people that own, manage, control and gain employment in South Africa’s economy.
• The Broad-‐Based Black Economic Empowerment (B-‐BBEE) Strategy was published as a precursor to the B-‐BBEE Act, No. 53 of 2003 with its clear mandate to increasing the number of black people participating in the country’s economy.
Related: BEE Compliance Not Enough To Expand SA’s Economy
The BBBEE Legislative is constantly being reviewed and adjusted, with the rollout of the latest amended BBBEE Codes of Good Practice on the 11th October 2013, effective the 1. May 2015 which
made BBBEE compliance almost unavoidable for many industries and especially for larger business entities.
Who is benefiting from BBBEE
“Black People” means African, Coloured and Indian South African citizens.
Safety situation
There is a very high level of crime including rape and murder in South Africa. The most violent crimes tend to occur in townships, remote and isolated areas and away from the normal tourist destinations.
According to the 2015/2016 South African crime statistics seven out of nine provinces reported a decrease in crime in general. In terms of murder, a serious crime, all provinces besides the Northern Cape saw an increase, with the Western Cape and Eastern Cape having the worst figures, with 52 and 52,8 murders per 100,000 people respectively. The total murder rate increase comes to 4,9%, with 34 murders per 100,000 people across the country.
Sexual offences, saw decreases in seven of nine provinces. South Africa is, of course, one of the world’s rape hotspots.
Over the past ten years, common robbery has decreased 23%. Since the last annual report, it has decreased by 1,5%, with burglary decreasing after having increased the previous year.
The robbery of cash-‐in-‐transit vehicles has increased dramatically, by a figure of 15%.
General carjacking has increased nationally by 14.3%. Theft of vehicles, however, is on the decline.
Contact crimes, which involve direct contact between criminal and victim, have increased in Limpopo and KwaZulu-‐Natal.
(Source http://news.iafrica.com/sa)
Strategy for economic development of the local government
President Jacob Zuma appointed the National Planning Commission in May 2010 to draft a vision and national development plan. The Commission is an advisory body consisting of 26 people drawn largely from outside government, chosen for their expertise in key areas.
The Commission’s Diagnostic Report, released in June 2011, set out South Africa’s
achievements and shortcomings since 1994. It identified a failure to implement policies and an absence of broad partnerships as the main reasons for slow progress, and set out nine primary challenges:
1. Too few people work
2. The quality of school education for black people is poor
3. Infrastructure is poorly located, inadequate and under-‐maintained 4. Spatial divides hobble inclusive development
5. The economy is unsustainably resource intensive
6. The public health system cannot meet demand or sustain quality 7. Public services are uneven and often of poor quality
8. Corruption levels are high
9. South Africa remains a divided society.
South Africans from all walks of life welcomed the diagnostic as a frank, constructive assessment. This led to the development of the draft national plan, released in November 2011. Building on the diagnostic, the plan added four thematic areas: rural economy, social protection, regional and world affairs, and community safety. The Commission consulted widely on the draft plan. The public forums drew in thousands of people; we met with parliament, the judiciary, national departments, provincial
governments, development finance institutions, state-‐owned entities and local government formations; and we held talks with unions, business, religious leaders and non-‐profit organisations.
South Africans have broadly supported the draft plan, proposing modifications and making suggestions to implement it effectively. Their input has informed this National Development Plan 2030.
The national Development Plan 2030
Eliminate income poverty – Reduce the proportion of households with a monthly income below R419 per person (in 2009 prices) from 39 percent to zero.
Reduce inequality – The Gini coefficient should fall from 0.69 to 0.6.
Enabling milestones
• Increase employment from 13 million in 2010 to 24 million in 2030.
• Raise per capita income from R50 000 in 2010 to R120 000 by 2030.
• Increase the share of national income of the bottom 40 percent from 6 percent to 10 percent.
• Establish a competitive base of infrastructure, human resources and regulatory frameworks.
• Ensure that skilled, technical, professional and managerial posts better reflect the country's racial, gender and disability makeup.
• Broaden ownership of assets to historically disadvantaged groups.
• Increase the quality of education so that all children have at least two years of preschool education and all children in grade 3 can read and write
• Provide affordable access to quality health care while promoting health and wellbeing.
• Establish effective, safe and affordable public transport.
• Produce sufficient energy to support industry at competitive prices, ensuring access for poor households, while reducing carbon emissions per unit of power by about one-‐third.
• Ensure that all South Africans have access to clean running water in their homes.
• Make high-‐speed broadband internet universally available at competitive prices.
• Realise a food trade surplus, with one-‐third produced by small-‐scale farmers or households.
• Ensure household food and nutrition security.
• Entrench a social security system covering all working people, with social protection for the poor and other groups in need, such as children and people with disabilities.
• Realise a developmental, capable and ethical state that treats citizens with dignity.
• Ensure that all people live safely, with an independent and fair criminal justice system.
• Broaden social cohesion and unity while redressing the inequities of the past.
• Play a leading role in continental development, economic integration and human rights.
Critical actions
1. A social compact to reduce poverty and inequality, and raise employment and investment.
2. A strategy to address poverty and its impacts by broadening access to employment, strengthening the social wage, improving public transport and raising rural incomes.
3. Steps by the state to professionalise the public service, strengthen accountability, improve coordination and prosecute corruption.
4. Boost private investment in labour-‐intensive areas, competitiveness and exports, with adjustments to lower the risk of hiring younger workers.
5. An education accountability chain, with lines of responsibility from state to classroom.
6. Phase in national health insurance, with a focus on upgrading public health facilities, producing more health professionals and reducing the relative cost of
7. private health care.
8. Public infrastructure investment at 10 percent of gross domestic product (GDP), financed through tariffs, public-‐private partnerships, taxes and loans and focused on transport, energy and water.
9. Interventions to ensure environmental sustainability and resilience to future shocks.
10. New spatial norms and standards – densifying cities, improving transport, locating jobs where people live, upgrading informal settlements and fixing housing market gaps.
11. Reduce crime by strengthening criminal justice and improving community environments.
Faster and more inclusive economic
Growth: an economy that will create more jobs
South Africa needs an economy that is more inclusive, more dynamic and in which the fruits of growth are shared equitably. In 2030, the economy
should be close to full employment, equip people with the skills they need, ensure that ownership of production is more diverse and able to grow rapidly, and provide the resources to pay for investment in human and physical capital.
Making progress will mean intensifying the country’s global presence in areas of competitive advantage, while building the necessary infrastructure and skills.
Economic growth needs to accelerate in a more inclusive manner. These are twin imperatives.
Government's New Growth Path aims to create 5 million new jobs between 2010 and 2020. It seeks to do so by providing a supportive environment for growth and development.
Transforming the economy and creating sustainable expansion for job creation means that the rate of economic growth needs to exceed 5 percent a year
on average. To bring this about the plan proposes among others :
• Increasing exports, focusing on those areas where South Africa already has endowments and comparative advantage, such as mining, construction, mid-‐skill manufacturing, agriculture and agro-‐processing, higher education, tourism and business services.
• Support for small businesses through better coordination of relevant agencies, development finance institutions, and public and private incubators.
• An expanded skills base through better education and vocational training.
To get young people into the labour market ? In addition, more emphasis is needed to support small businesses, encourage government and the private sector to
procure from small firms, and to enhance the development of black and female managers and professionals. A rapidly growing economy that is diversifying into new sectors will open up opportunities for black-‐owned firms and smaller businesses, promoting inclusive growth.
South Africa has to exploit its strengths to increase exports. If the economy is less competitive in one area, it will have to do better in others. The country’s comparative advantages include its mineral and natural resource endowments. South Africa holds large global shares in platinum group metals, gold, diamonds, manganese, coal, iron ore and uranium. Yet over the past decade, domestic mining has failed to match the global growth trend in mineral exports due to poor infrastructure, alongside regulatory and policy frameworks that hinder investment. South Africa can benefit greatly from Asia’s growing demand for commodities. To do so means improving water, transport and energy infrastructure, and providing greater policy and regulatory certainty to investors. This will enable the mining sector to deploy the skills, resources, know-‐how and capital that are available, and allow government to raise much more tax revenue than it does at present.
An inclusive and integrated rural economy
South Africa’s rural communities should have greater opportunities to participate fully in the economic, social and political life of the country, supported by good-‐quality education, health care, transport and other basic services. Successful land
reform, job creation and rising agricultural production will contribute to the development of an inclusive rural economy. South Africa’s hinterland is marked by high levels of poverty and joblessness, with limited employment in agriculture. The apartheid system forced much of the African population into barren rural reserves. The result was an advanced and diversified commercial farming sector relying on poorly paid farm labour, and impoverished, densely populated
communities with limited economic opportunities and minimal government services. To change this, we propose a multifaceted approach: Creating more jobs through agricultural development, based on effective land reform and the growth of irrigated agriculture and and production. Providing basic services that enable people to develop capabilities to take advantage of opportunities around the country, enabling them to contribute to their communities through remittances and skills transfer.
Developing industries such as agroprocessing,
tourism, fisheries and small enterprises where potential exists.
Synergy
Synergy with government partners and South African organisations
We focused on the Gauteng area to build up partnerships with national agencies and ministries, especially in the area of tourism, business development and green economy, as this will be, together with entrepreneurship with a special focus on social impact, our priorities in South Africa. Our goal is to establish strong partnerships with these institutions so we can help them achieving their goals regarding private sector development within their respective domains (rather than assisting individual companies that submit an application).
Department of Small Business Development http://www.dsbd.gov.za
The Ministry of Small Business Development was established in 2014 marking a turning point in history of SMME’s and Co-‐operatives development in South Africa, demonstrating Government’s commitment to place SMME’s and Co-‐operatives at the centre of economic growth and job creation.
The core departmental goals are:
1. Policy and planning coherence in the sector, that promotes an enabling ecosystem for SMMEs and Co-‐operatives
2. Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-‐operatives
3. An enhanced contribution to socio-‐economic development outcomes by the sector 4. Sound governance and the optimal utilisation of available resources
5. A professional and capacitated SBD sector.
The department of Small Business Development is interested in working with Exchange to improve the skills of their small business advisors because they are not yet fully qualified. In that way Exchange can help the DSBD with their fifth goal: to create a professional and capacitated SBD sector. Can we assist in capacity building of their business advisors?
On organisational level the DSBD would like to get assistance on the following subjects:
Business rescue strategy (how to develop this to assist business rescue advisors)
• To minimize the administrative burdens to small businesses
• To help them with the development of an incubation policy
• To help develop tools (f.ex. tools to test the financial wellbeing of a company)
• Database development ((more and more informal traders get convinced to register)
This part will help them to achieve goal 2: Equitable access to responsive and targeted products and services that enable the growth and development of SMMEs and co-‐operatives
The National Department of Tourism
https://www.tourism.gov.za/Pages/Home.aspx
The National Department of Tourism needs assistance in SMME
Development. The NDT has a fund for SME’s, for emerging entrepreneurs in tourism and could pay for projects.
Specific needs in financial management, marketing management, training young people in hands on skills so they are able to establish their own business. Waste management could be a cross cutting item.
If we assist NDT there has to be a designated coordinator.
We can draft a proposal for a long term project with several interventions (including a pilot project).
RETOSA
http://www.retosa.co.za/
The Regional Tourism Organisation of Southern Africa (RETOSA) is a Southern African Development Community (SADC) body responsible for the development of tourism and regional destination marketing across the 15 Southern Africa countries: Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
RETOSA is on this moment reviewing its strategy. In July RETOSA plans a strategy planning session to redefine its corporate strategy, including a brand reformulation and a growth and development strategy for the Southern African Region. In its new strategical plan, RETOSA would like to increase the involvement of women (capacity building to women for poverty relief) and youth (include them in community based tourism)
Exchange could help in this strategy review with specific expertise on strategic planning etc.
In a second phase Exchange can provide experts in several specific areas, according to the needs in the different projects of RETOSA.
Kwakye & Eline (Exchange) informed Simba (RETOSA) that Exchange wants to take the collaboration between the two organisations to the next level (also input on strategy of RETOSA) and that we will ask RETOSA for a higher contribution (apart from accommodation & food, also flight ticket and overheads costs) (= +/-‐ 5000 EUR/project).
Exchange would like to elaborate a framework agreement with RETOSA.
Simba will inform the new CEO of RETOSA of the possibilities of this collaboration (with presentation of Exchange).
If the CEO agrees, Simba will inform Exchange and Exchange will draft a first MoU STEMISA
www.stemisa.co.za
STEMISA stands for Sustainable Tourism Enterprise Management Institute Southern Africa. It focuses on transforming lives of local communities through running experiential tourism activities, capacity building management programs for Small Medium and Emerging Tourism Enterprise (SMETEs) and Community Based Tourism Enterprises (CBTEs) .Therefore STEMISA is carrying out a study to identify the capacity gaps in CBTEs/SMETEs in business growth and development .The results of the study will provide STEMISA with the vital information and intelligence for developing programs and projects to capacitate these enterprises so that they achieve their goals and fulfill their missions. STEMISA would like to start a partnership with Exchange in case they can not find the needed expertise locally.
STEMISA is also interested in getting Exchange expertise on an organisational level.
Stemisa is also an interesting partner for Exchange as tourism will be one of Exchanges key sectors in South Africa.
PETCO
www.petco.co.za
PETCO is the trading name of the PET Recycling Company (PtY) Ltd, and represents the South African PET plastic industry’s joint effort to self-‐regulate post-‐consumer polyethylene terephthalate (PET) recycling and end of life solutions. The company was established in 2004.
PETCO’s unique model is built on the simple principle of an environmental solution for post-‐consumer PET plastic, driven an financed by the industry. To achieve this every everyone involved, from the raw material producers, the converters, brand owners, retailers, consumers and recyclers are playing their part in the solution, with PETCO fulfilling the PET industry’s role of Extended Producer Responsibility (EPR).
PETCO is part of an association called “Plastics SA”, representing the plastics industry in South Africa.
PETCO represents companies in the whole country.
PETCO is financed by a voluntary recycling levy paid by converters on PET resin purchased. PETCO also receives grants from brand owners, resin producers and retailers. Support for PET recycling efforts ensures an ongoing monetary value for post-‐consumer PET. This sustains collection interest and reduces the volume of post-‐consumer PET in the waste stream.
By taking responsibility for post-‐consumer PET recycling, PETCO imposes accountability over the entire life cycle of PET products and packaging. This means that companies which manufacture, import and/or sell PET products and packaging are financially and physically responsible for such products after their useful life.
Ongoing consumer and public education and awareness activities promote environmental responsibility and encourage PET recycling.
PETCO operates throughout South Africa and has offices in Cape Town and Johannesburg.
PETCO spends 69 % of it budget on recycling projects and 5% on collection and training projects. With their collection and training projects PETCO supports visible recycling in the following ways:
1. PET infrastructure and equipment provision => PETCO sponsors infrastructure and equipment to aid an grow visible recycling.
2. Collector training and development (training in a.o. business skills, training of management of cooperatives and SME’s, trainers speak local languages.
3. Education and awareness
4. Special projects and joint ventures 5. Fostering government partnerships 6. Building the recycling network
Until now PETCO is only active in the recycling of beverage industry.
PETCO would like to get expertise from Exchange in multi-‐layer plastic trays. In South Africa plastic trays are used a lot, but they have not yet found a recycling solution. The tray fabricants buy PET, but do not recycle. PETCO will try to force them to recycle but has to present a solution.
It might be possible that PETCO will be a part of the waste bureau of the Department of Environmental Affairs in the future.
Exchange will draft an MoU, including an expertise on recycling of multi-‐layer trays and will share this with Belinda.
Synergy with international actors in South Africa
SEED
https://www.seed.uno/about/work/south-‐africa.html
2010 was the year of the first country pilot, in South Africa. SEED South Africa operates on exactly the same lines as the global SEED model:
Innovative start-‐up social and environmental enterprises in South Africa are identified through dedicated component of the global SEED Award competition. Winning enterprises are supported in scaling up and expanding their operations; SEED Winners as well as applicants are included in the SEED Research. Their successes to date and the constraints they face are described in the SEED Reports.
These insights are available to South African policy-‐ and decision-‐makers to facilitate a more enabling regulatory, financing, marketing and skills development framework which can stimulate the green economy at the grassroots.
SEED South Africa aims also to create a national community of successful social and environmental entrepreneurs, providing increased business opportunities for the entrepreneurs themselves and for the wider business community.
The pilot country scheme in South Africa falls under the larger, substantially EU funded, focus on Africa, which aims to support African countries in their efforts to refocus policies and investment in green economic sectors, such as renewable energies and energy efficiency, sustainable agriculture, forests, water and waste management, tourism, green construction and transport, and to enhance social and environmental entrepreneurship, strengthen local capacities, create green jobs and help to alleviate poverty.
The government of South Africa through the work of the Department of Environmental Affairs (DEA) has been a forerunner in the field of eco-‐entrepreneurship. DEA has already implemented a variety of public projects in this field, in particular through its Green Fund Programme that seeks to support green initiatives to assist South Africa’s transition to a low carbon, resource efficient and climate
resilient development path. Through its long term partnership with SEED and as the representative of South Africa on the SEED Board and chair of the SEED South Africa Steering Committee, DEA is also committed to foster dialogue and synergies between the various stakeholders in South Africa.
Synergy with Belgian actors
Belgian Campus
www.belgiumcampus.ac.za
Belgian Campus was founded in 1999 by two Belgians and counts three campuses and 820 students at the moment. Belgian Campus works closely together with several industries (like the health sector, pharma industry, creative economy).
They created an Innovation Centre which mainly focuses on research but they also have several running innovation projects like making the city of Tswane a “smart city”. They are also working on a smart farming project together with Mlab (https://www.mlab.co.za/).
They recently started a new curriculum in cyber security, which is also business and IT related.
Belgian Campus is affiliated with 3 Belgian Universities like KU Leuven (University of Leuven), UA (University of Antwerp) and UCLL (UC Leuven – Limburg).
For their Innovation Centre they are very interested in the Cisco Training that Exchange will offer to Mhub in Malawi. The Innovation Centre of Belgian Campus could be a part of our Digital Hubs project.
In the future the innovation Centre could be very relevant for all Exchange projects in South Africa: if we identify a certain need, the Innovation Centre can try to find an innovative solution.
Trias
https://www.trias.ngo/en/worldwide/south-‐africa
Trias has been active for several years in South Africa working together with entrepreneurs associations. These associations are still working around racial divides. Trias seeks to facilitate cooperation between the three largest organisations in the interest of small-‐scale entrepreneurs, with special attention for entrepreneurial people in the poorest townships. Trias is also investing in a constructive dialogue between local young people and enterprising immigrants in those townships.
During their last program, Trias followed-‐up the core activities of the three main chambers of commerce: Afrikaanse Handelstinstituut (AHI -‐ National business association with 20,000 -‐ mainly rural -‐ members. In the past, only white people could join, but nowadays everyone is welcome), the National African Federated Chamber of Commerce and Industry (NAFCOC -‐ National business association that represents black entrepreneurs. The 5,000 paying members are spread out across the entire country), and the South African Chamber of Commerce and Industry (SACCI – National business association with 20,000 members. A strong player in urban areas where the chambers of commerce of black townships are active).
In the new program, starting from this year on, Trias wants to work more with the local chambers of commerce. Based on several criteria, they selected until now 9 local chambers, but want to select 3 more. Trias wants to help them to become business incubators. The George Chamber has developed a 6 weeks business course. Until now they have trained 2000 entrepreneurs, that had been selected based on their work experience. Because of the success of the George Chamber, Trias asked the George Chamber to share the course material with other local chambers. Trias provides the opportunities and the resources in order to get more entrepreneurs trained.
Stad Aalst
Since 2012 de City of Aalst has a twinning with Worcester, located in Breede Valley Municipality. In 2017 Exchange facilitated a project on demand of Breede Valley Muncipality. Exchange actively involved the City of Aalst.
City of Aalst demonstrated their commitment by contributing financially and otherwise to this recent successful project in Breede Valley Municipality. This project has now firmly established Exchange as a partner of choice in realizing local economic development. It sets an example for the four municipalities in the Western Cape already twinned with cities in Flanders, but also to two others that may want to explore-‐ in the longer term-‐ possible twinning’s .
