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	<title><![CDATA[iAfrica :: Business : Features]]></title>
	<link>http://www.iafrica.com</link>
	<description><![CDATA[All the news that's fit to print.]]></description>
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<pubDate>2014-03-15 07:05:22</pubDate>
<content_id>907621</content_id>
<author><![CDATA[Megan Ellis]]></author>
<heading><![CDATA[China: colonialist or comrade?]]></heading>
<title><![CDATA[China: colonialist or comrade?]]></title>
<description><![CDATA[Is media coverage of China's relationship with Africa balanced or alarmist? Megan Ellis investigates...]]></description>
<body_text><![CDATA[Sino-African relations have been brought back into the headlines, with bilateral trade between SA and China increasing by a third in 2013 and an education deal which could see Mandarin taught in local schools.
However not everyone is celebrating China's increasing ties with African countries.
Last month, renowned primatologist Jane Goodall likened China to a colonial power &ndash; pillaging Africa for resources at the expense of the environment and the local population.
In fact, a survey by the Ethic Institute of South Africa found that SA leads the continent in anti-Chinese sentiment.
However, are these views balanced or alarmist?
Polarised reporting
Brigitte Read, project coordinator at the China-Africa Reporting Project based at Wits, said that reporting on China is often polarised.
&quot;China portrayed either as a predator or partner depending on the topic and often the position of the media,&quot; said Read. &quot;As a rising superpower challenging the established order, China can often be treated with suspicion and ignorance and not the balance and fairness good journalism requires.&quot;
Commenting on Goodall's comparison of China to colonialists, Read said: &quot;There is no doubt that China is actively exploiting Africa&rsquo;s resources but whether this constitutes colonialism depends on your definition of the term.&quot;
&quot;China is not coming in as a conqueror and is generally dealing with willing government and business partners who often seek out Chinese investment.&quot;
Business equals
This was reflected in President Jacob Zuma's defence of China's business relations with South Africa.
&quot;The countries that have been dealing with us before, particularly old economies, they've dealt with us as former subjects, as former colonial subjects,&quot; Zuma said in an interview with CNBC Africa.   &quot;The Chinese don't deal with us from that point of view. They deal with us as people that you must do business (with), at an equal level so to speak,&quot; he said.
Hysteria and hypocrisy
Dr Daouda Ciss&eacute;, research fellow at the Centre for Chinese Studies at Stellenbosch University, echoes this idea.
&quot;When some talk about China as colonial power, we should look at the type of relations African countries had with former colonial powers,&quot; he said. &quot;There was an exploitation of resources, military conquest, and economic expansion done without partnership negotiations.&quot;
&quot;Today we are talking about economic globalisation and sovereign African countries establishing political, diplomatic and economic ties with the rest of the world; be it the Chinese, the Korean, the Japanese, the Europeans or the Americans.&quot;
Ciss&eacute; published a commentary piece entitled 'Hypocrisy and hysteria in Western criticism of China's engagement in Africa', in which he said there is hardly any positive coverage of the nature of Sino-African relations.
He said that Europe or the United States' engagement with the continent was not perfect either - potentially having more negative than positive aspects.
He also pointed out that China invests more in Europe, USA and Australia than it does in Africa.
&quot;Africa's independent countries operate in the era of globalisation just like anyone else; they are not in a Western backyard,&quot; said the paper.
In an interview with iafrica.com, Ciss&eacute; said that China's presence in South Africa could help diversify the economy and provides investment opportunities.
&quot;If well managed, Chinese investments in resources sector for instance could contribute to employment, skills and technology transfer and to bridge the gap between sectors in South Africa,&quot; he said.
&quot;As South Africa is endowed with resources, particularly mineral products, the surge in the global commodities&rsquo; prices could contribute to South African economic growth.&quot;
Engagement with China could also provide a boost to the manufacturing sector.
&quot;The case of Hisense in Atlantis in the Western Cape is an example to look at,&quot; said Ciss&eacute;.
&quot;Hisense managed to hire locals in an area where the unemployment rate is still high and contributed to skills and technology transfer as the whole manufacturing process of household equipments take place in Atlantis.&quot;
However, there are also negative aspects of China's involvement in Africa.
&quot;China's involvement in South Africa comes with challenges to policymakers, businesses and entrepreneurs,&quot; he said.
&quot;Competition for domestic market share as well as regional market share in some areas (textile industry, manufacturing&hellip;) happened and could happen in the long run particularly in new sectors where the Chinese are more and more involved: telecommunications, finance, tourism and infrastructure building.&quot;
Ciss&eacute; also said that there are also environmental sustainability issues if one considers the Chinese investments in the mining sector.
However, he said that much of the anti-Chinese sentiment surrounded issues of ignorance and prejudice.
&quot;In the case of South Africa, xenophobia in particular and racism and discrimination in general add to public sentiment among South Africans about Chinese involvement in South Africa.&quot;
So while there are both negative and positive effects of China's involvement in Africa, much of the reporting and sentiment regarding these relations is biased.
&quot;Journalistic knowledge could help deal with stereotypes and prejudices often used in many China-Africa media coverage,&quot; said Ciss&eacute;. &quot;Media experts need to go beyond that rhetoric and come up with broader perspectives.&quot;]]></body_text>
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<pubDate>2013-11-01 07:08:41</pubDate>
<content_id>885785</content_id>
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<heading><![CDATA[Avoid online shopping pitfalls]]></heading>
<title><![CDATA[Avoid online shopping pitfalls]]></title>
<description><![CDATA[Online shopping has gained momentous traction amongst South African consumers and while it has many benefits, there are regulations that can push up the costs of a purchase.]]></description>
<body_text><![CDATA[With the increased availability of broadband access, affordable data costs offered by mobile operators and the consistent development of mobile devices, online shopping has gained momentous traction amongst South African consumers. Norman George, Operations Director at DHL Express South Africa says that with the upcoming festive season fast approaching, consumers are increasingly choosing to purchase gifts online from retailers from both South Africa and abroad due to the ability of being able to make a selection from a wide range of products at competitive prices, without being limited by geographical locations.&quot;With improved infrastructure, in terms of Information and Communications Technology (ICT), and online safety and security, more South Africans are choosing to make use of online shopping over traditional brick and mortar outlets due to the variety of products available to them at just a click of a button,&quot; says George.He points to recent figures mentioned at the Goods Council of South Africa summit which revealed that online retail in South Africa has to date reached R4-billion in 2013, while reaching R1-trillion internationally. &nbsp;He says that while online shopping has many benefits, not many South African consumers are aware of the regulations involved with importing products purchased online from international retailers, which could lead to consumers incurring additional expenses, thereby making the product less of an attractive buy. &quot;One of the most common misunderstandings is often as a result of consumers not being fully aware of the current regulations that apply when goods are imported into the country.&quot;All shipments transported across international borders must be cleared through Customs, where, depending on the type of goods being shipped, they may also be subject to certain other restrictions and regulations. There are goods such as clothing that attract high rates of duty and are subject to interventions by Customs where the price, contents and country of manufacture are often interrogated to mitigate a wide range of risks.&quot;He adds that confirming any possible restrictions attached to particular goods is vital and should be the first action taken by consumers before making a purchase online in order to avoid suffering any financial losses in the event that goods are detained by Customs.When purchasing goods online from international retailers, George says that it is important to bear the following factors in mind to avoid additional costs or a delay in delivery of the goods: - Import taxes and duty: All South African taxes and import duty costs are calculated specifically on the value of the imported goods. Consumers should also be aware that certain products such as footwear and wines are calculated part in value and/or in quantity, and may be subject to permit requirements based on quantity, while others, such as clothing, jewellery, perfumes and mobile devices, may only be calculated on the value of the product. It is important to note that the import of any second hand and used goods, even those imported for the purpose of donations (excluding clothing), is strictly prohibited for entry into the country without an import permit.- Customs clearance: When shipping with certain express operators, no duties are payable for shipments below R500 in total and are processed under an informal clearance at Customs. Where the shipment total value exceeds R500, full duties and taxes are payable depending on the commodity being shipped.- Choose a suitable courier service: Citizens of South Africa are allowed to import goods using their identity number, however if this information is not available at the time of import for shipment values exceeding R500, the shipment understandably cannot be cleared on arrival until the information is obtained from the customer. This delay ultimately defeats the purposes of using an express delivery service and therefore submitting all information required is crucial.- Gifts: There is a value limit on gifts. Gifts are only acceptable between individuals and a full description of the contents is required, the generic description &quot;gift&quot; is not accepted. Gifts up to a value of R400.00 can be cleared, but any value above that will be deemed commercial goods.- Be aware of the different shipment costs: It is important to establish what costs the shipper and the customer will be responsible for prior to the shipping of the goods. There are ultimately three main costs associated with the movement and clearance of goods with express operators: a) the cost of the goods payable to the shipper, b) the shipping costs to the customer&rsquo;s door, and c) the duties, taxes and Customs clearing costs. In most instances, the duties and taxes payable in the country of destination cannot be accurately determined by the shipper at the point of ordering the goods and these costs are not included by the shipper in their quotations to the customer. As a result, on arrival into South Africa, these charges are billed to and payable by the customer before the package can be claimed - often to the customer&rsquo;s total surprise. This ultimately could result in the landed cost (the total amount of all costs) of the e-retail merchandise becoming much more costly for the buyer than expected and could potentially put them off repeat on-line purchases. There are however e-retailers that offer Delivered Duty Paid (DDP) terms which confirms that all costs, inclusive of the duties, taxes and clearance costs, are payable by the shipper and that the customer is not responsible for any surprise costs. &quot;It is advisable for consumers to speak to the online retailer or a local expert / service provider should they be unsure about any regulations that may apply to their purchase,&quot; concludes George.]]></body_text>
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<pubDate>2013-10-31 07:23:12</pubDate>
<content_id>885639</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA[Business knowledge is power]]></heading>
<title><![CDATA[Business knowledge is power]]></title>
<description><![CDATA[Business owners need to be familiar with important Acts and commercial law pertaining to business practice as it is easy to break the law without realising it.]]></description>
<body_text><![CDATA[The key to being a successful entrepreneur is planning. This is according to Eugene Botha, Legal Associate at Sirdar South Africa, who recently addressed SME owners at a Business Partners Limited breakfast. Botha says that understanding the legal components of a business need to form an integral part of the planning process for all entrepreneurs, as careful planning of policies will ensure that business owners avoid costly legal problems in the future. According to Lionel Billings, Head of Consulting Services of Business Partners Limited, although legal terms may strike fear into business owners, it is necessary to be familiar with important Acts and commercial law pertaining to business practice, as it is easy for a business owner to break the law without even realising it. &quot;In our experience, it is extremely important for business owners to be familiar with certain laws and Acts which SMEs need to comply with. It is the responsibility of the business owner as director and shareholder to know which Acts and laws are relevant to them. It is also easier for businesses to operate within the business landscape as government and clients are more likely to partner with SMEs which are compliant.&quot;Botha adds that the law should also be used as a tool to successful planning for businesses. &quot;Entrepreneurs need to take risks in order to succeed in business and if risks are taken without the required knowledge and correct management these risks are effectively a gamble. Every business has legal requirements which need to be planned for effectively and risks which need to be covered.&quot;He says that pertinent Acts which business owners should familiarise themselves with include the Companies Act, Consumer Protection Act, National Credit Act, Protection of Private Information Act, Promotion of Access to Information Act, Broad-based BEE Bill and the Employment Equity Act. &quot;These Acts will impact a business on a regular basis, and it is therefore necessary for business owners to understand them in order to avoid legal implications and costly law suits.&quot;Billings says that it is the business owner's responsibility to ensure that there are consistent policies in place, and that employees are trained on these policies. &quot;Grievance, disciplinary, sickness and equal opportunity policies are key and should be followed precisely in order to avoid legal issues.&quot; Botha advises that an Act which entrepreneurs should be on top of currently is the Consumer Protection Act. &quot;Consumers have certain rights which all businesses need to take into account when marketing and selling products directly to consumers, and be aware of the certain dangers that may exist.&quot;&quot;Consumers and businesses will have to redefine their relationships, recognise a fresh equality of power and tread very carefully in navigating new ground,&quot; says Billings. Botha points to the National Credit Act, which he says is also key for business owners to be familiar with. &quot;Businesses need to ensure that they have done proper credit checks, do not hand out credit recklessly and give proper notice before taking action to recover debt.&quot;He advises that businesses should conduct an assessment in order to establish what Acts they should be compliant with. &quot;For instance, certain Acts and regulations only apply to businesses with a turnover of R2-million or more. Business owners need to be aware of which rules they need to comply with and which are not necessary to take into consideration.&quot;Billings says that businesses should also evaluate all current legal and business structures in place, applicable laws and enterprise risks which apply to the business. &quot;Ensure that your business plan incorporates legal strategies and be sure to develop a legal implementation plan.&quot;&quot;It is also important for a business to keep company secretarial and governance documents updated. It is advisable to seek assistance from legal professionals who understand the industry that your business operates in,&quot; concludes Billings.]]></body_text>
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<pubDate>2013-10-25 07:04:13</pubDate>
<content_id>884911</content_id>
<author><![CDATA[]]></author>
<heading><![CDATA[Tough times for SMEs in SA]]></heading>
<title><![CDATA[Tough times for SMEs in SA]]></title>
<description><![CDATA[South Africa's poor rankings in the Global Competitiveness Report highlights the need for action to aid business growth for small and medium enterprises.]]></description>
<body_text><![CDATA[The recently released 2013/2014 World Economic Forum&rsquo;s (WEF) Global Competitiveness Report has revealed that South Africa ranks significantly lower than other emerging economies when it comes to factors relating to business development and expansion. According to Nazeem Martin, MD of Business Partners Limited, while many countries can learn from the strength of South Africa&rsquo;s financial market development and the availability of financial services in the country, these rankings highlight the need for action around labour inefficiencies and other factors which aid business growth. Overall, South Africa ranked 53rd out of 148 countries in the Global Competitiveness Report, down one place from last year, as a result of labour strikes, a struggling education system and government bureaucracy. The report ranked South Africa 116 with regards to labour market efficiency, 144 for flexibility of wage determination and 147 for hiring and firing practices. Martin says that these factors affect small business growth, and challenge SME owners when it comes to expansion, management and business practices. &quot;The report also ranked South Africa 82nd in terms of the number of days required to start a business, which highlights the extensive red tape which SMEs need to overcome when starting a business.&quot;He points to the restrictive labour laws which SME owners need to comply with, and says that although these regimes suit larger businesses and corporates; these requirements are often out of reach for SMEs. &quot;More than 50 percent of people in formal jobs in South Africa are employed by SMEs, and more than 60 percent of new jobs created every year are created by these businesses. The effort and cost to comply with our modern labour legislation can inhibit SME growth.&quot;He says that he would suggest government considers an exemption of businesses below a certain size from all labour laws, apart from health and safety laws, and reinforce the exemption of a probationary period from the dismissal of rules. All this should and can be done without infringing the rights of workers.Martin says that it is however not all doom and gloom for South Africa, as the report also highlights areas that the country is performing well in, which are all conducive for SME growth. For example, ease of access to loans (ranked 22) and venture capital availability (ranked 28) in South Africa were commended in the report, as was the quality of the roads in the country (ranked 41).
Although the quality of educational system is poor (South Africa is ranked 146), the country fares well in the quality of management schools (ranked 23), which augurs well for established SMEs owned by management graduates as well as big business who employ these graduates. He says that it would be beneficial for teachers in South Africa to not only adhere to the government policy of being at school, but to commit to providing excellent teaching every single day. The department of basic education can in turn improve controls to increase accountability by teachers and reward them accordingly. &quot;The adoption of schools by corporate South Africa will also go a long way towards improving our education system.&quot;The SME sector has significant job creation potential, and, if fully utilised, could assist in solving the current unemployment challenge in South Africa. Despite the effort which is being made to aid SME growth in the country by government, the barriers highlighted in the Global Competitiveness Report need to be dealt with more effectively and rapidly, in order for the promising SME sector to grow to its full potential,&quot; concludes Martin.]]></body_text>
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<pubDate>2013-10-24 07:00:53</pubDate>
<content_id>884728</content_id>
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<heading><![CDATA[SA farmers look to Africa]]></heading>
<title><![CDATA[SA farmers look to Africa]]></title>
<description><![CDATA[South African commercial farmers and other agribusiness firms are increasingly looking to Africa for growth opportunities and new markets. Here's why...]]></description>
<body_text><![CDATA[It is no secret that Africa is on the rise and increasingly offering lucrative opportunities to South African businesses due to the continent&rsquo;s steady economic growth, increased disposable income and high consumer confidence.Hennie Heymans, Managing Director of DHL Express South Africa, says that one particular sector which has seen significant growth in Africa is agribusiness, which entails the full value chain from agricultural production by farmers through secondary processing, distribution and retailing to the consumer (farm-to-fork concept). &quot;The retail sector is booming in Africa, with large South African retailers choosing to expand their chains across the continent. As a result of this expansion, there is a greater availability of and demand for good quality agricultural produce and processed food products than ever before.&quot;He points to the recent report by World Bank - Growing Africa: Unlocking the Potential of Agribusiness - which revealed that Africa&rsquo;s farmers and agribusinesses could create a trillion-dollar food market by 2030 - a three-fold increase from the current size of the market which is estimated to be worth $313-billion.&quot;This expected growth highlights the growing market and many opportunities for South African agribusiness and related value chain role players to expand into Africa,&quot; says Heymans.According to Hennie van der Merwe, CEO of the Agribusiness Development Corporation (ADC), the South African commercial farming sector is currently seeing little growth due to challenges such as arable land and water scarcity, increasing labour costs and rising electricity tariffs and that due to these challenges, South African farmers and other agribusiness firms are increasingly looking to Africa for growth opportunities and new markets. &quot;Given its increased spending power, demand for goods and untapped land resources, Africa is currently experiencing a revival in terms of its focus on agribusiness, not only to increase food self-sufficiency, but also to create jobs and economic activity, specifically in rural areas,&quot; says van der Merwe.Van der Merwe says that growth in the South African agricultural sector and market has been slow and that growth prospects in the sector has been tempered by various factors, including perceived lack of political support for commercial farming and issues around land ownership and redistribution. He refers to the Agbiz/IDC Agribusiness Confidence Index for the third quarter of 2013, which indicates that only half of agribusiness decision-makers and executives are positive about the local agribusiness environment. &quot;In the current climate, Africa is increasingly offering greater growth forecasts. The South Africa commercial agriculture sector is in a low growth cycle due to numerous challenges the sector is facing. While Africa on the other hand is offering exciting growth opportunities due to the fact that on a global scale, around 60 percent of underdeveloped high potential arable land and substantial untapped water resources are in Africa.&quot;He explains that while Africa is well-endowed with resources, it often lacks much of the necessary expertise to unlock the commercial potential of its agriculture resources, whereas South Africa is well regarded for its expertise in commercial farming and agribusiness.&quot;One of the major limitations on agribusiness development in Africa is a human capacity and human skills constraint. The ability and experience to develop and manage commercial farming and agribusiness ventures are largely lacking in the African environment and that major technology transfer and capacity building initiatives would be necessary in this regard.&quot;Van der Merwe says the partnership between South Africa&rsquo;s technology and expertise and Africa&rsquo;s resources is where the opportunity lies for local businesses and farmers. Heymans says that infrastructure is another significant constraint, as the lack of access roads hinders the delivering of produce to the market. &quot;Efficient infrastructure is critical for the effective functioning of agribusiness. Removing logistical barriers will increase productivity and improve service delivery greatly.&quot;Heymans adds that that while it was previously a great risk to get involved in Africa, today it is an even bigger risk not to be involved in Africa. &quot;Most major South African brands are now involved in Africa and small and medium enterprises (SMEs) are now also actively seeking opportunities. A big differentiator between businesses which are successful in Africa and those which aren&rsquo;t is effective supply chain management, as the continent is still relatively new to businesses expanding into the area.&quot;Van der Merwe adds that it is vital to have partnerships in place before venturing into projects in Africa. &quot;Partnerships with a local business or association in the specific country are necessary as South African business owners need to be provided with assistance, guidance and sometimes protection when in the area. It is also essential to ensure that all the building blocks for working value chains are in place to ensure successful operation. A local partnership will also assist with analysing the market carefully to evaluate what the real market needs, requirements and opportunities are.&quot;&quot;The market in Africa is there and ready, but the question is how South African businesses create a direct link to service the market needs,&quot; concludes Heymans.]]></body_text>
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<pubDate>2013-10-16 06:54:37</pubDate>
<content_id>883631</content_id>
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<heading><![CDATA[Africa's best business schools]]></heading>
<title><![CDATA[Africa's best business schools]]></title>
<description><![CDATA[Two South African business schools have been rated in the top three in Africa at the recent Eduniversal World Convention of the Best Business Schools...]]></description>
<body_text><![CDATA[The UCT Graduate School of Business has been rated the top business school in Africa at the 6th Eduniversal World Convention of the Best Business Schools, held earlier this month in Bangalore, India.The UCT GSB was given top honours along with the Five Palmes award, which is awarded to business schools with major international influence. The American University in Cairo&rsquo;s School of Business ranked second and the University of Stellenbosch Business School, ranked third in Africa.Hosted by the Indian Institute of Management, the annual convention was a meeting of business school leaders, academics, and education professionals from around the globe organised by Eduniversal, the Paris-based global ranking and rating agency specialising in higher education.&quot;To receive such an award from our national and international peers is an honour and a powerful testimonial to the way we teach business management and leadership at the GSB,&quot; said UCT GSB director, Walter Baets. &quot;It is the peer-reviewed nature of the award that makes Eduniversal ranking a crucial metric to measure our progress.&quot;The Eduniversal International Scientific Committee (ISC) nominates a selection of 1000 business schools from 153 countries, across nine geographic zones. Schools are nominated based on a global mapping system made up of criteria such as universality and international reputation. From the selection, deans and directors of the business schools are asked to vote for the school they recommend most.&quot;The GSB strives to be the leading business school in Africa. We place a special emphasis on leadership and management with an African perspective. To have our efforts recognised by the international community is heartening and encourages us to pursue our agenda,&quot; said Baets.Pranav Tandon, an Indian student who completed his MBA in 2012 at the GSB, was on hand to receive the award for the school. Baets said that the Eduniversal ranking, which is based on the rating of peers, complements other business school rankings, which are based on employer ratings like the QS Top 200 Global Business Schools or alumni ratings such as the Financial Times and Which MBA rankings. The UCT GSB full-time MBA is the only one in Africa to feature in the Financial Times' 2013 Top 100 Global MBA Ranking. In 2013, the GSB Executive MBA was also the only African EMBA to feature in the Economist's Which MBA ranking, and the school was also ranked top in Africa by the 2013 QS Top 200 Global Business Schools ranking. The GSB is now one of just 59 business schools worldwide to be triple-crowned, having accrediation from the European Foundation for Management Development (EQUIS); the Association to Advance Collegiate Schools of Business (AACSB); and The Association of MBAs (AMBA).&quot;These achievements make it possible for us to say that the GSB has more top rankings and accreditations than any other business school on the continent. And although these are not the only thing that should be important to a business school, they do give a good third part endorsement of the quality and integrity of an institution,&quot; said Baets.]]></body_text>
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<pubDate>2013-10-10 06:59:22</pubDate>
<content_id>882841</content_id>
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<heading><![CDATA[Risky business: Get covered]]></heading>
<title><![CDATA[Risky business: Get covered]]></title>
<description><![CDATA[Small business owners need to ensure they are prepared for unexpected events that could have severe financial consequences for them. Sanlam's Deon Theunis explains...]]></description>
<body_text><![CDATA[Financial planning for business owners can be a complicated affair, and with so many balls to juggle in the day-to-day running of a venture, it is easy to neglect this crucial aspect of ensuring future success. Insurance is one of the aspects most often overlooked &ndash; internal research conducted by Sanlam has shown that two thirds of South African business owners do not have basic business insurance.Sanlam Business Market's head of distribution support, Deon Theunis, says the owners of small and medium-sized enterprises (SMEs) need to ensure they are adequately prepared for unexpected events that could otherwise have severe financial consequences for themselves, their business and their families &ndash; before it&rsquo;s too late.&quot;Of the one third of business owners that do have insurance, only 10 percent review it on an annual basis. Most owners have an attitude of 'it will never happen to me', but they do not realise the risk they are taking. By neglecting this aspect of their financial planning, they are essentially not insuring the most important thing &ndash; their ability to generate an income.&quot;Theunis says the three key risks most businesses need to be insured for are:1. Signing surety without suretyExternal funding is a normal part of business, and may come in the form of an overdraft facility, a term loan or asset finance. Financial institutions normally require the owner of a business to sign surety for the funding required. Theunis says very few business owners realise, however, that their personal estates are also affected by this. &quot;If the owner who signed surety dies, his or her estate may be called upon to settle the debt. This can put enormous financial pressure on not only the business, but also the owner&rsquo;s family.&quot;Business owners need to ensure their personal estates are protected through what is called contingent liability insurance, which pays off debt if the business owner dies. &quot;Our statistics show that only 3 percent of the business insurance policies we sell are for contingent liability, despite the fact that almost all businesses have debt.&quot;2. Unrecovered capitalWhen starting a business venture, many entrepreneurs bring capital into the business, often in the form of a loan to the business. This capital belongs to the business owner's personal estate, and the family is thus entitled to receive the money back in the event of the owner's death. However, the business may not be able to repay (or refinance) the loan, leaving it in financial distress. Theunis says the problem can be solved by covering the loan with a life insurance policy, which will pay out upon the death of the business owner.3. Unrealised wealthWhen a co-owner in a business dies or becomes permanently disabled, the deceased owner's estate can be left severely exposed, but the remaining owners could also be at risk. It is important to know what will happen to the business partner's share of the business if this partner dies or becomes disabled. For example, if the partner's share is inherited by his or her family, the latter could either expect to sell their shares to the surviving business owner, or expect to get involved in the business &ndash; to the possible detriment of the business.&quot;A buy-and-sell agreement states what will happen to each partner's share of the business in the case of death or disability. A life insurance policy is then used as the funding solution to implement the agreement, for example, buying the share of the deceased or disabled partner.&quot;Theunis says there is a multitude of other financial planning needs business owners should also consider, including insuring against the loss of a key person in the business, succession planning in the case of a family business, cover for employees such as funeral insurance, financing possible expansion of the business, and reinvesting surplus cash.&quot;Because it is such a complex field and each business has unique financial needs, it is crucial to get expert advice from a qualified financial adviser before making any decisions. A financial adviser can assist business owners to prioritise their business insurance needs to protect not only the business, but also themselves and their families,&quot; he concludes.]]></body_text>
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<pubDate>2013-10-01 07:07:46</pubDate>
<content_id>881487</content_id>
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<heading><![CDATA[African beat: US wants in]]></heading>
<title><![CDATA[African beat: US wants in]]></title>
<description><![CDATA[With Africa touted to see phenomenal economic growth in the near future, the United States is keen to build upon its trade and investment programmes on the continent.]]></description>
<body_text><![CDATA[Trade between the United States of America and Sub-Saharan Africa is set for continued growth, as both regions build upon the recent US Presidential Policy Directive (PPD) to achieve sustainable development through increased trade and investment.This is according to Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa, who recently visited to the United States to meet with key stakeholders and multi-nationals, as well as promote commerce between the two regions.&quot;We have already seen this increased trade in specific countries on the continent, as they take advantage of preferential trade agreements and state-led policy change to increase exports and imports with the US&quot; says Brewer.Figures recently released by the International Monetary Fund (IMF), as well as the company&rsquo;s own performance, reveal an extremely positive economic outlook for Africa. The figures also highlight the fact that Africa is proving to be less susceptible than other regions to the peaks and troughs in the global economy, as it diversifies its trading partners.&quot;Since 2001, many African countries have seen a significant shift in trade partners,&quot; notes Brewer. &quot;Our dependency on Europe has been reduced, while trade with Asia as well as intra-Africa has picked up significantly. The next region for growth is the US and we&rsquo;re very pleased to see the US government&rsquo;s willingness to break down trade barriers to achieve this.&quot;The IMF&rsquo;s Regional Economic Outlook for Sub-Saharan Africa report found that economic activity in the region is projected to expand by about five percent in 2012 and 2013, a similar pace to that observed in 2010&ndash;11. Key markets driving this growth are Nigeria, Ghana, Mozambique, Mauritius and South Africa.Brewer says that DHL Express has seen a similar picture appearing between the US and various African trade lanes, with larger, more developed economies like South Africa, Nigeria, Ethiopia, Kenya, Ghana and Angola boasting strong double digit growth on both inbound and outbound volumes.Hennie Heymans, Managing Director for DHL Express South Africa comments: &quot;Our shipment figures for exports from South Africa to the US grew significantly over the last year for August 2013 compared to the lower single digit year-on-year growth of August 2011 vs. August 2012. The top commodities being shipped along this trade lane include study material, books, CDs, DVDs and marketing material.&quot;The company&rsquo;s shipment figures also revealed that it is the smaller, rising economies that are seeing a major boom, with Somalia, Mayotte, Guinea-Bissau and South Sudan seeing meteoric increases in imports from the US, and Comoros, Eritrea, South Sudan and Liberia enjoying significant demand for exports to the States.&quot;The USA and Africa have historically enjoyed favourable trade conditions based on the Africa Growth and Opportunity Act (AGOA) of 2000,&quot; says Ian Clough, CEO for DHL Express USA. &quot;We are confident that, when this legislation is reviewed, there will be further benefits for both US and African businesses looking to build cross-border business opportunities.&quot;Brewer says that there is no doubt that there is commitment to trade growth from the respective governments, and that these figures will continue to rise. &nbsp;&quot;It is now the role of the private sector and the thousands of SMEs looking for opportunities to take advantage of this growth, and build success on this lucrative trade lane,&quot; concludes Brewer.]]></body_text>
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<pubDate>2013-09-27 06:53:37</pubDate>
<content_id>881039</content_id>
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<heading><![CDATA[Dealing with seasons of change]]></heading>
<title><![CDATA[Dealing with seasons of change]]></title>
<description><![CDATA[Seasonality in the tourism industry is a given, but the reality is that many businesses across SA have to grapple with it too. We have some tips on how to deal with seasonality.]]></description>
<body_text><![CDATA[The inherent seasonality of many small and medium enterprises (SMEs) across many sectors is perfectly illustrated by the way accommodation establishments take turns at 'feast' and 'famine' in South Africa.For example, at certain times of the year, a great wave of bed-and-breakfast customers push inland as they travel to the economic hub of Gauteng on business, while coastal beds stand empty. But come holiday season, the wave rushes outwards and the coastal establishments get to feast while the Gauteng accommodation industry wonders how to survive the lean months. This is according to David Morobe, Business Partners regional manager, who says that though seasonality in the tourism industry is particularly noticeable, many do not realise that it is a reality that many businesses across various sectors in South Africa have to grapple with. He says that this seasonality could be a result of many factors, such as fluctuations of demand and in other cases because of supply.Morobe says that one of the marks of true entrepreneurship is how capably business owners adapt to, and even counter, seasonality in their industries. He supplies the following tips for SME owners on how to ride the roller coaster of seasonal fluctuations:- Get to know the cycle in your industry and accept its reality. When you are new to an industry, rapid growth of a business may mask the normal seasonal fluctuation, fooling you into thinking that monthly sales figures will either remain stable or keep on rising. Make sure that you base conclusions about the seasonality of your business on sales data from at least two or three years. If you have not been in business that long, find out from your peers and industry experts.- The importance of planning in dealing with seasonality cannot be overemphasised. Business owners must keep their gaze at least six months ahead of the present and the only way to do that is through proper planning systems. Cash cushions need to be built during the busy months to carry the business over quieter periods. Everything from stock levels to staff levels must be carefully planned to avoid having cash tied up in quiet months, or waiting on supplies when business demand picks up again. &nbsp;- Building alternative income streams to counteract the off-season is a valid survival strategy, even if it takes your focus off your core business to a certain extent. For example, a ceramics workshop could give pottery lessons in the low-sales months or a landscaping company could put its trucks to use for short-term transport contracts in the off season. Just be careful that the tail does not end up wagging the dog and once again, ensure careful planning ahead of time. - Promotions need to be counter-cyclical to a certain extent, as if you start advertising only in the busy period; you have probably 'missed the bus.' If you can reach your clientele before the peak, do it. Businesses should also shift promotions to suit the various seasons. An example of this is a tourism business offering specials to locals in the off-season. - Just because you do not see regular clients during the off season, it does not mean they have disappeared altogether. Try to find ways of staying in touch with them all year so as to ensure they are repeat customers when the season comes around again.- Many businesses are so seasonal that the owner simply has no choice but to employ seasonal labour on short-term contracts, despite increasing opposition to the idea. The trick is to manage expectations of seasonal workers - be clear about the length of the job - and keep abreast of the tightening regulations around temporary work in South Africa.- Consider borrowing, leasing or renting pieces of equipment for the peak season only, rather than buying them and having them stand idle for half the year. Some basic calculations can quickly tell you whether buying or renting will be cheaper. &nbsp;- It helps to cultivate a relationship with a financier that understands the seasonality of your business. In some cases equity finance may be better suited than a loan to help the business overcome deep off-season dips.- Use slow months to prepare for the peak season. It is a good time to do staff training, planning, building inventory, repairing and maintaining equipment, and dry runs for new ideas.]]></body_text>
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<pubDate>2013-09-20 06:58:50</pubDate>
<content_id>880303</content_id>
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<heading><![CDATA[The power of true diversity]]></heading>
<title><![CDATA[The power of true diversity]]></title>
<description><![CDATA[SA has not yet optimised diversity to truly help leverage and improve the quality of work currently being produced, the SA Board for People Practices said.]]></description>
<body_text><![CDATA[South Africa has not yet optimised diversity in a way that can truly help leverage and improve the quality of work currently being produced by the country. This is according to Marius Meyer, Chief Executive Officer of SA Board for People Practices (SABPP), who was speaking at the inaugural Celebrating Diversity Conference, which was held in Johannesburg. He said that if every single employee in a company can achieve their optimum potential and is able to deliver their best work for an organisation, profits are likely to double. &quot;There are many people who have negative feelings or don't see the value of diversity, and this has to change if we really want to get diversity into profits,&quot; says Meyer. The conference, held in association with SABPP, aims to highlight the power of true diversity within the public and private sector, going beyond that of race, gender and age, and details how diversity, if properly managed, can provide a business with that much sought after competitive edge. Meyer says that South Africa has some of the best employment equity laws in the world and that this is not to be blamed when discussing South Africa&rsquo;s diversity levels. &quot;Mirrored on the Canadian and United Kingdom&rsquo;s employment equity model, we have generated the best piece of employment equity legislation. &quot;There is nothing wrong with the law; the law does not need to change. What is wrong however, is the quality of the practices and the support of the applicants. Over the last 20 years, it is not the law that has failed; it is us as HR managers and CEOs of companies that have failed the implementation of employment equity.&quot;Part of the problem is the fact that HR practitioners do not always possess the right competencies to drive professional HR practices. For this reason, the recent South Africa HR competency model was developed to assist HR managers, says Meyer. The model, developed locally amongst Human Resources (HR) managers, sets the benchmark for HR professionalism in the modern South African work environment. &quot;If we don&rsquo;t get HR professionalism right, we will sit with exactly the same employment equity figures for an additional 20 years. Employment Equity is a wonderful opportunity for us to really embrace true diversity and help us achieve the type of targets we should be achieving when it comes to the South Africa workforce. Also speaking at the conference was Barbara Watson, Chief Director Diversity Management for the Department of Public Service and Administration, who said that when discussing the Employment Equity Act, focus is often put on the numbers rather than the section that deals with substantive equality, which is essentially what the act was meant to achieve.&quot;In any workplace there is a manifestation of all kinds of differences - some of which are obvious to see, whilst some not so obvious. These differences can be related to education, marital status, age, sex, race, height, size, colour, religion, disability, ethnicity, etc. and can also influence the way people behave, feel, act, work, react to things and perceive things which leads to the 'in-group' and 'out-group' thinking. &quot;This absolute way of seeing things often gives rise to stereotypes of racism, sexism, ageism and manifest in some form of discrimination in the workplace, which in return affects morale, productivity and staff retention. If unchecked, it could also lead to recruitment of 'in-group' members only, which is an unfair labour practice.&quot;The Genesis of Difference and the Business Case for Embracing Diversity breakaway session highlighted that at the heart of any diversity issue, is the question of power. Facilitator for the panel, Lindiwe Zikhali, head of transformation and regulatory affairs at Anglo American says that &quot;transformation is a challenging process. It can require people to change what they are familiar with: their work environments, the way they do things and their attitudes and behaviours. For as long as these challenges persist, we recognise that we need to apply our collective thinking to innovative and sustainable solutions.&quot;Prof Melissa Steyn, best known for her work on whiteness and white identify in post-apartheid South Africa, formed part of the panel for the session. &quot;Differences are often just differences, nothing more or nothing less than that, but once power starts operating on it and constructing differences, it is as if something really matters. When talking about managing diversity, what we really are doing is working into those power relations and trying to shift power relations,&quot; says Steyn.Diversity Management specifies how differences should be harnessed in a way that contributes positively to the goals of the organisation and/or department, says Watson. &quot;It is how we bring together different groups to create equity, and in the process harness the power of the different talents and perspectives each group brings to achieve organisational goals.&quot;Valuing diversity is not a denial of differences but rather, an act of embracing them and recognising these differences as integral parts that are equally valid and having something to contribute to the organisation,&quot; concludes Watson.]]></body_text>
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