Oceans Economy unlocks potential of Nelson Mandela Bay region

Die Burger » Page 40 & 41.
Celebrate a hundred years of Die Burger’s
reporting in an infographic that acts like a time
machine of the past century.
Oceans Economy » Page 18 – 31.
What could this mean for the economy of
the region once the potential of our sea and
coastline is unlocked?
Cartoon » Page 67.
Die Burger’s well-known cartoonist Fred
Mouton’s special edition cartoon crafted
exclusively for Infocom readers.
www.nmbbusinesschamber.co.za
QUARTER THREE 2015
JOIN THE BAY'S BUSINESS CONVERSATION

90828ADMAKERS.COM
MEET THE
NEW GERMANS
OpelSA or www.opel.co.za
The OPEL RANGE

C O N T E N T S
Nelson Mandela Bay Business Chamber
200 Norvic Drive, KPMG House, Greenacres, 6045 • 041 373 1122 • www.nmbbusinesschamber.co.za • Registration Number: 94/08719/08
Bridgestone SA 041-404-9111 www.bridgestone.co.za
City Services Management
(PTY) Ltd
041-583-6893 www.cityserve.co.za
Die Burger 041-503-6111 www.media24.com/newspapers/die-burger/
Dimension Data 041-398-5310 www.dimensiondata.com
Dynamic Vision 041-367-2832 www.dynamicvision.co.za
Eastern Cape Motors 041-816-5555 www.easterncapeford.co.za
ETC Conference Centre 041-456-1616 www.etc.org.za
ETC Training 041-456-1616 www.etc.org.za
GMSA 041-403-9111 www.gmsa.com
Grant Thornton 041-374-3222 www.gt.co.za
IDC 041-363-1640 www.idc.co.za
Isuzu Trucks 011-563-4000 www.isuzutrucks.co.za
JGS 041-396-9200 www.jgs.co.za
KPMG 041-395-1500 www.kpmg.co.za
Netwide Internet 086-112-0120 www.netwide.co.za
Newsclip 087-285-1614 www.newsclip.co.za
NMMU Business School 041-504-4000 www.leadersfortomorrow.co.za
Old Mutual PFA 041-390-7700 www.oldmutual.co.za
PE College 041-585-7771 www.pecollege.co.za
Purevoice 086-999-0911 www.puregroupsa.co.za
PWC 041-391-4400 www.pwc.com/za
The Boardwalk 041-507-7777 www.suninternational.com
The Hope Factory 041-484-7400 www.thehopefactory.co.za
The Plantation 041-366-1591 www.theplantation.co.za
Valmac 041-484-2728 www.valmacofficenational.co.za
Varsity College 041-363-4223 www.varsitycollege.co.za
Volkswagen Group SA 041-994-4711 www.vw.co.za
Workstation 041-586-0258 www.workstation.co.za
ADVERTISERS LIST YOUR CHAMBER
CEO’s letter 3
Chamber reaches record amount of Certificates of Origin issued 13
5 Questions to Nelson Mandela Bay Business Chamber
Executive Secretary, Nicki Smith 14
Thank you to our Category Members 79
Welcome to our New Members 80
The Business Conversation: Unlocking the wealth in our oceans 21
Vox Pop: Your views on the development of the PE Harbour 26
Eastern Cape Maritime Summit promotes opportunity in
the Blue economy 29
Algoa Bay Yacht Club - A place of leisure, friendship and sailing 30
OCEANS ECONOMY
Electricity Update: Almost R300-million saved for residents
and businesses in the city 35
Environmentalistswhograbbedanopportunityandkeptitsimple 36
Second Coega Power Plant to improve South Africa’s
Energy Security 38
GREENING THE BAY
Notes from the top by Mpumi Dweba-Kwetana 7
Wish you were here – Creating a sense of pride 62
Events Feedback - Highlights of the third quarter 75
Task Teams remain on the pulse of the Bay’s business concerns 76
REGULARS
EDITOR
Cindy Preller
media@nmbbusinesschamber.co.za
COMMUNICATIONS OFFICER
Sandiswa Hewana
communication@nmbbusinesschamber.co.za
COMMUNICATIONS INTERN
Gary Blom
intern@nmbbusinesschamber.co.za
ADVERTISING AND SALES
Pam Cartwright
publications@nmbbusinesschamber.co.za
PRINTING
Cadar Printers PE
DESIGNER
Strategy Advertising
Cover Story:
Oceans Economy »
Page 18 – 31.
Cover photo:
Tasmia Ismail »
EP Media General
Manager of Die Burger
Continues on page 67.

75YEARS OF INDUSTRIAL
DEVELOPMENT
For 75 years, the IDC has been committed to leading industrial development in South Africa.
It is this commitment that has enabled us to grow key industries and facilitate job creation,
ensuring a positive contribution to the growth of our economy. If you’re an entrepreneur
and have a business plan that is relevant to an industry that the IDC supports and require
funding of R1 million or more, take the lead and make history. Call the Port Elizabeth office
on 041 363 1640, the East London office on 043 721 0733 or visit idc.co.za to learn more
about the funding criteria for the sectors that the IDC supports.
SINCE 1940
OF INDUSTRIAL DEVELOPMENT
/10001032SM

I
T HAS BEEN a busy third quarter in the region of Nelson
Mandela Bay and in particular, at the Nelson Mandela Bay
Business Chamber.
As a business community we have had many wins over the past
quarter. The biggest of these was the National Energy Regulator
(Nersa)’s rejection of Eskom's application to raise the price of
electricity in the country.
As a result, electricity customers in Nelson Mandela Bay will this
year collectively save R296 336 000. The approximate electricity
saving per category of business amounts to:
• Large business saving R3.3-million per year;
• Medium business saving R157 000 per year;
• Small Business saving R15 720 per year; and
• A household saving of R2 358 per year.
I believe these figures speak to the true value the Nelson
Mandela Bay Business Chamber gives to our members and the
broader business community. I trust that this will attract greater
membership for the Business Chamber due to our influential and
leading role on a national level in the electricity pricing space.
We also welcomed the announcement by Thomas Schaefer,
Managing Director of Volkswagen Group South Africa, regarding
the substantial investment of R4.5 billion over the next two years
into the Uitenhage plant. This type of confidence shown in our
region, yet again, is another positive indicator of our position as
a platform into the African markets and bodes extremely well for
local suppliers and particularly the component manufacturers in
VWSA’s supply chain. We welcome the local spend in our regional
economy and look forward to seeing the potential job creation as
the investment unfolds.
Other wins for the region was the welcoming of Spallian Africa to
our shores. I enjoyed the privilege of hosting his Royal Highness
Prince Wenceslas de Nassau of Luxembourg, representing the
international data consulting company Spallian, and the CEO of
Spallian South Africa Belinda Brass, in Nelson Mandela Bay and
showing them the investment possibilities the city has to offer
(see article on page 6). Another company who has joined forces
with the Nelson Mandela Bay Business Chamber is Isuzu Truck
South Africa, who has come on board as a Silver partner. We also
welcomed Sage VIP Payroll & HR on board as a Blue Partner.
Our International Desk recently received funding from our
valuable partners, the Eastern Cape Development Corporation
(ECDC) to the tune of R250 000 and First National Bank
amounting to R100 000. These funds go a long way in assisting us
host inward international investor missions and member export
readiness.
And last but not least, the Nelson Mandela Bay Business Chamber
was honoured with a Diamond Arrow Award in the PMR.africa
Eastern Cape Provincial Survey as “an institution doing the most
to develop and enhance the production and manufacturing of local
goods and products”. This is proudly our third year in succession of
receiving a Diamond Arrow Award.
All these wins for the Nelson Mandela Bay Business Chamber, have
been marred by the violent protest action in Walmer on August
13. A survey by the Business Chamber tallied the losses suffered
by Walmer businesses during the protest to at least R2.5-million
(see article on page 11). The majority of the damages were turnover
losses and these calculations did not include damage to vehicles,
including a horse and trailer which was burnt out and could easily
push the amount close to the R5-million mark.
As a business community we strongly condemn the anarchy and
criminal element associated with the service delivery protest.
I have engaged with the relevant police and local government
authorities, to ensure that the situation is not allowed to boil
over again. The municipality should deliver expediently to the
community’s needs and police presence should be more geared
for these types of events to protect private property, businesses
and the residents of the city. Looking forward, the Blue Economy
offers the Nelson Mandela Bay a bright future with exciting growth
opportunities in the maritime and marine sectors. As a region, we
can take full advantage of all the Oceans economy focus areas (as
listed on page 20) to unlock its true potential. It is exciting to see
progression in the region on building a strong Ocean Economy
with the manganese terminal move to Coega progressing (See
article on page 23). As the Nelson Mandela Bay Business Chamber
we are in full support of the Nelson Mandela Metropolitan
University progress in establishing a maritime department in
building capacity for the future. The location of the South African
International Maritime Institute (SAIMI) in the Bay is also an
exciting development (See article on page 24), not only benefitting
our region but also the African continent.
Facing the current difficult economic times, we wish all our
Business Chamber members strength and agility in business in the
Fourth Quarter of this year.
Kevin Hustler, CEO
C E O ' S L E T T E R
3

D
EAR INFOCOM READER, welcome to the new-look Infocom – your favourite Nelson Mandela Bay business read had
a bit of a makeover in the Third Quarter of this year and we hope that you will enjoy the new modern look and feel of the
publication.
L E T T E R F R O M T H E E D I T O R
As the Nelson Mandela Bay Business Chamber we are
particularly proud of the publication, which has its origins
as a black and white newsletter of the Midland Chamber of
Industry many decades ago. The publication has over the years
changed along with the purpose and goals of the Business
Chamber – through merging with the Port Elizabeth Chamber
of Commerce to form the Port Elizabeth Regional Chamber of
Commerce and Industry in 1994, and more recently changing
our name to the Nelson Mandela Bay Business Chamber.
Looking back at some of the previous publications (page 61),
Infocom has remained the voice of business for all these years
– keeping up with new investments, sharing in company’s
successes as the Business Chamber’s staff and board members
continue to change over the years. We welcome the creative
team of Strategy Advertising and Design (page 60) on board
as the new designers for Infocom, and we are excited about the
new look of the publication.
While on a personal level, content has always topped the
aesthetics of a publication for me as an editor – looks do count.
The publication has over the years become a glossy, quality
publication of which the business community can be proud of.
We look forward to continue on this path to bring you the
best business news from the region – and would welcome any
input from our members. Please send the Communications
Team all your business news – we would love to share in your
achievements as we continue to face the business challenges in
the city together.
In this edition, we celebrate 100 years of news along with Die
Burger (cover page, 40 and 66). Having personally started my
journalism career at the Eastern Cape edition of the paper and
having worked at the Media 24 Group for 10 years, I can attest
to the high level of ethical journalism practiced at the paper.
Congratulations to Die Burger on achieving this milestone.
Our theme for this edition is the Oceans Economy (pages 18 to
31) and we look forward to the pivotal role Nelson Mandela Bay
can play in adding to the wealth of the region and country in a
sustainable manner.
Enjoy the read.
Regards
Cindy Preller, Communications Manager
L
AST year was a significant milestone for the Nelson
Mandela Bay Business Chamber as we celebrated 150
years of organised business in the city.
As one of the most prestigious and long-lasting projects of the
150 year campaign, we decided to release a Coffee Table Book
which focusses on showcasing not only business in the various
suburbs and geographical areas of Nelson Mandela Bay, but also
puts the city as a whole at the centre-stage of the publication.
The Nelson Mandela Bay Business Chamber Coffee Table Book
is available at Fogarty’s in Walmer Park.
SNEAK PEEK
BUSINESS LOVES… RICHMOND HILL

i n f o c o m QUARTER THREE 20156
ROYAL INTEREST
AN INVESTMENT
DESTINATION OF CHOICE
A
S A REGION, we continue to celebrate new
investments into the city, with the interest of even
royalty being piqued by the vast offerings of Nelson
Mandela Bay.
His Royal Highness Prince Wenceslas de Nassau of
Luxembourg has visited the Nelson Mandela Bay on more than
one occasion recently, to investigate the investment possibilities
the city has to offer. His visit was hosted by the Nelson Mandela
Bay Business Chamber CEO Kevin Hustler, who took the
Prince and Spallian South Africa CEO Belinda Brass on a
tour of the Port of Ngqura as well as the Coega Development
Corporation (CDC) and Industrial Development Zone (IDZ).
Spallian Africa also hosted a Coffee Morning at the Business
Chamber with selected business representatives from the
city, to introduce the company’s products and services. The
company provides software solutions along with data and
consulting services. If a decision is made to open an office in
Nelson Mandela Bay, it would be the head office from where the
African operations would be run from.
During a recent visit to the
Port of Ngqura were from
left, Nelson Mandela Bay
Business Chamber CEO Kevin
Hustler, Ngqura Container
Terminal Chief Operations
Manager Bongani Mbotini,
Prince Wenceslas de Nassau
of Luxembourg and Spallian
South Africa CEO Belinda Brass.
Picture: Supplied.
“It has been an absolute privilege and honour to
host Prince Wenceslas de Nassau and see Spallian
Africa’s passion for not only South Africa but the
African continent as a whole. We sincerely welcome
them to our shores,” Hustler said.
ROYA L V I SI T

M
Y CAREER has taught me many things, the most
important of which is to always take 100%
responsibility for your life and be clear of where
you want to be in life, and pursue your vision. Know who you
are and believe in yourself. Some people are very good with
starting things, others are good at transforming and others are
good at maintenance. Set targets for yourself and action those
targets. Never be afraid to ask questions and always remember
to remain focused.
Being the first Female Port Manager of Ngqura is very exciting
for me. Rajesh Dana, the Port Manager for the Port of Port
Elizabeth, and I see both ports as catalysts for economic
development within the Eastern Cape. My focus is to ensure
that I inspire, direct and motivate the management and
encourage them to be the high performing team that they are,
and in turn as management we create an environment for the
employees to perform at their highest levels of excellency.
In my personal view the future of business in the Eastern Cape
looks good, there are a lot of opportunities. With the Special
Exclusive Economic Zones Act, we see a lot of opportunities
coming from the Coega Industrial Development Zone (IDZ) as
well as the East London IDZ.
P ORT OF NGQUR A PORT MANAGER MPUMI DWEBA-KWETANA
N O T E S F R O M T H E T O P
Businesswomen in the Eastern Cape astound me with their
courage, ability to sail against the storm and make it happen
in these global economic conditions. Platforms to recognize,
acknowledge and celebrate those who have demonstrated
exceptional leadership skills and have distinguished themselves
in their respective fields, are encouraged. Women in business
should not be underestimated because of their gender, colour
or religion.
If I could open the eyes of businesspeople in the Eastern Cape
to one thing it would be to never give up, start off small and
grow big. Hard work, commitment and dedication pay off. I
would ask them to adopt what I call the ‘Cathedral Mind-set’.
This concept was introduced to me by my mentor, Mr Eric
Mafuna. It is basically about the Sagrada Familiar Concept,
where Antony Guadio, took over a project of constructing one
of the largest Cathedrals in the World, in Barcelona, in Spain.
He devoted his entire life to the project.
MPUMI DWEBA-KWETANA
Port of Ngqura Port Manager
Mpumi Dweba-Kwetana works for Transnet
National Ports Authority as the Port Manager
for the Port of Ngqura. She was appointed
in August 2012. Before her appointment as
Port Manager, Dweba was employed by the
National Department of Transport as acting
Director: Maritime Industry Development and
Economic Regulation. She holds a BA degree
from the University of Transkei, a BEd degree
from Unisa, and a BPhil in Maritime Studies
(Honours) from the University of Stellenbosch.
IN MY PERSONAL
VIEW THE FUTURE
OF BUSINESS IN THE
EASTERN CAPE LOOKS
GOOD, THERE ARE A LOT
OF OPPORTUNITIES.
COMPILED BY GARY BLOM
7

HOOTERS & WEIDPLAS
NEW BUSINESS IN THE BAY
H
OOT, HOOT, HOORAY: Hooters South Africa
has recently opened in Port Elizabeth, which brings
the total number of Hooters restaurants in South
Africa to six. The PE restaurant under the management of
local restaurateur Donovan Noyle opened to an enthusiastic
public on August 15. The new 200 seater store boasts 25 high
definition TVs, an outside balcony space and ample parking on
site. Combined with a vibrant atmosphere and the world famous
Hooters wings, Hooters South Africa is excited to play its part in
the Port Elizabeth restaurant scene for many years to come.
NEW PARTNERSHIP LAUNCHED: Swiss plastic component
manufacturer WEIDPLAS and South African partner QPlas, a
specialist plastic injection-moulding manufacturer, launched an
innovative trade partnership in the high-tech QPlas facility in the
Nelson Mandela Bay Logistics Park on August 19. Celebrating the
launch were, from left, QPlas operations director Le Roux Harmse,
WEIDPLAS vice-president Daniel Spirig, QPlas managing
director Tom du Toit, QTeC Moulding operations director Natalie
Johannes, WEIDPLAS South Africa general manager David
Krumbock, and WEIDPLAS CEO Thomas Freiberghaus. The
partnership is set to create opportunities to increase local content
in South African automotive manufacturing.

www.nmbbusinesschamber.co.za 9
Ayanda Kgwathe has been
appointed as the new hotel
manager at the Boardwalk
Hotel and Convention Centre.
Hannes Els has been appointed
as Merchant Capital’s Head of
Regional Sales for the Eastern
Cape. He combines a decade
of retail experience with
financial services skills earned
as regional manager for a retail
financial services company.
Michael Tuohy has been
appointed as General Manager
of Headhunters boutique
recruitment consultancy.
Michael previously worked as
the Sales & Marketing Director
at Volpes for many years.
Sipho Sandla has been
appointed as General Manager
of KANU/ACT Operations for
Isuzu Truck South Africa.
THE BOARDWALK, MERCHANT CAPITAL, HEADHUNTERS & ISUZU TRUCK SOUTH AFRICA
NEW APPOINTMENTS

11
T
HE RECENT WALMER PROTEST action which
turned violent cost surveyed Nelson Mandela Bay
businesses close to R2.5-million.
While not all businesses affected by the Walmer protest, which
lasted two days and was at its worst on Thursday August 13,
responded to a questionnaire sent out by the Nelson Mandela
Bay Business Chamber, the 30 businesses responding to the
survey reported a massive R2 421 600 in losses. The majority
of the damages were turnover losses totaling R1 391 500, while
some businesses also experienced stock losses of R 527 600.
Damage to property was calculated to be at least R 502 500,
with fences and several shop windows needing to be repaired.
Many of these businesses were not insured for public violence
and would have to foot the repair bills themselves.
The reported damages did not include damages to customers’
vehicles. One respondent recalls, “Customers’ vehicles were
damaged by bricks and stones thrown and an elderly gentleman
was pulled out of his bakkie and attacked”. In particular,
businesses reliant on daily customers visiting their stores
suffered the most in terms of foot count losses during the
week of August 13. No physical injuries were reported by the
businesses surveyed, however they reported staff and customers
being traumatized and left frightened after the ordeal. Other
respondents were frustrated and angry: “I will not be held
accountable for my actions if this happens again. I hope that the
police take this threat seriously,” was one poignant comment
from the survey.
Most of the surveyed businesses reported intimidation of staff
and customers with one shop owner threatened in his vehicle
outside his store and another who had to flee when protestors
ransacked her shop, as she was trying to lock it up in the
presence of police officers. Since the Walmer protest action, the
Nelson Mandela Bay Business Chamber CEO Kevin Hustler has
engaged with the relevant police and municipal authorities to
ensure this type of event is averted at all costs.
“The type of anarchy and criminal element witnesses in the
name of a service delivery protest must be condemned in the
strongest possible terms. The full might of the law must be used
to stem this type of lawlessness as it wreaks havoc amongst
law-abiding citizens going about their daily routine. It also has
a huge immediate negative impact on businesses, its ability to
sustain itself in an already tough economic environment and its
staff having to face unrelenting intimidation and threats against
their right to work.”
“The major knock-on effect is the negative impact
on the confidence levels of both domestic and
foreign investors whom we so desperately need to
turn around the socio-economic environment of
our country,” Hustler said.
VIOLENCE IN WALMER
CLOSE TO R2.5-MILLION
IN DAMAGES SUFFERED
COMPILED BY CINDY PRELLER
FLEEING THE SCENE
Protesters flee from the Walmer
Police Station in Main Road
Walmer on August 13 when
teargas was fired to disperse
the crowd. They had marched
on the Police Station to demand
the release of a suspect who
had been arrested for public
violence during a service
delivery protest in Walmer
Township the previous day.
PHOTO: Werner Hills,
Die Burger

OLD MUTUAL PFA, EASTERN CAPE
REGION IS MADE UP OF FOUR
AREAS:
1. Madiba Bay which covers the Nelson Mandela
Metro and surrounding areas. Contact number of
the main area office: 041 390 7700.
2. East London covers areas under Buffalo City
Metro Municipality and surrounding areas and
Queenstown. Contact number: 043 706 4111.
3. Mthatha Area covering Mthatha area and the greater
Transkei area. Contact Number: 047 501 2000,
press 1 for PFA.
4. George Area covers the Southern Cape and the
Karoo areas. Contact number: 044 801 6401.
The regional office is located in Port Elizabeth in
Walmer Heights at King Court Mall.
SUPPORT STAFF
The region also has four key support functions all
based at the regional office in Port Elizabeth except
for Client Services which is based at Greenacres
Shopping Centre:
Regional Marketing, Training Suppor, Legal Services
and Client Services.
The Client Services contact number is 041 502 4244;
otherwise contact your financial adviser for more
information and assistance.
INTRODUCING NCUMISA MADINDA:
REGIONAL GENERAL MANAGER
Ncumisa officially joined Old Mutual on 4 May 2015.
Some of her previous experience includes various sales
roles with a special focus on worksite development
and she was the Regional Head of Distribution in her
previous role in the Western Cape.
She completed her undergraduate and MBA at the
Nelson Mandela Metropolitan University (NMMU).
Excellence is her personal motto and her favourite
quote is: “We are what we repeatedly do. Excellence,
then, is not an act but a habit.” by Aristotle.
OLD MUTUAL PERSONAL FINANCIAL
ADVICE SERVICES:
Financial Planning & Advice | Education Planning |
Savings & Investments | Life Insurance | Short Term
Insurance | Medical Gap Cover | Retirement Planning
| Disability Insurance | Severe Illness Insurance |
Wills, Trusts & Estates
OLD MUTUAL PERSONAL
FINANCIAL ADVICE
EASTERN CAPE REGION
Old Mutual is a Licensed Financial Services Provider
INTRODUCING

SAKHIWO MADONDILE’S JOURNEY
CHAMBER REACHES RECORD
AMOUNT OF CERTIFICATES
OF ORIGIN ISSUED
C
ERTIFICATES OF ORIGIN and Admin Clerk
Sakhiwo Madondile - best known around the Nelson
Mandela Bay Chamber offices as Sakhi - has been
working at the Business Chamber for five years. Starting off as a
general office assistant once he had finished matric, Sakhi went
on to study a few Short Learning Programmes through Varsity
College Port Elizabeth.
After successful completion he was later promoted to Office
Administrator at the Chamber. The position for a Certificates of
Origin (COO) and Admin Clerk became available, which saw
Sakhi completing some courses on Certificates of Origin. After
completion of his studies, he was promoted yet again, this time
to his current position which he has held for the past four years
as the COO and Admin Clerk at the Chamber.
“A Certificate of Origin is a document which states the origin
of goods being exported and this ‘origin’ is a key requirement
for applying the tariffs as well as other important criteria.
COMPILED BY GARY BLOM
“It was a great achievement. COO and the
export industry have been growing from
strength to strength, especially with the
Perishables, Wool & Mohair as well as Hides
& Sheepskins trade, which saw the month of
June boom with the number of goods being
exported,” said Sakhi.
Financial requirements may be requested by the issuing bank in
terms of a documentary letter of credit.
“EU funded overseas projects also require certificates - these
are sponsored projects which may stipulate that goods must be
bought from an EU member state. Certificates are also required
when the buyer may have a preference as to where the actual
goods are bought from, this is normally stipulated within the
contract,” Sakhi said.
Businesses benefit from Nelson Mandela Bay Business
Chamber COO services if they export their products overseas,
going through the efficient and friendly Sakhi at the Business
Chamber.
The export industry and COO have recently seen a record
number of certificates being issued in the month of June.
NELSON MANDELA BAY BUSINESS
CHAMBER ASSISTS EXPORT COMPANIES
WITH THEIR CERTIFICATES OF ORIGIN
Certificates of Origin and
Admin Clerk Sakhiwo
Madondile reached a new
record at the Chamber
in June, with 1 977
certificates issued.
Certificates of Origin services are offered at the Nelson Mandela Bay
Business Chamber. This service is offered to both our members and external
Certificates of Origin clients. In 2013 we produced over 12 000 and in 2014
we produced 13 806 Certificates of Origin, which had shown incredible
growth year-on-year. During the first seven months of this year, we have
already issued close to 8 480 certificates. The most certificates issued to
date in one month was achieved in June this year, with the record of 1 977
certificates.
13

YOUR CHAMBER
5 QUESTIONS TO
BUSINESS CHAMBER
EXECUTIVE SECRETARY
NICKI SMITH
N
ICKI has given quality service to the Nelson Mandela
Bay business community through her work at the
Business Chamber for the past 26 years.
1. How did your journey start at the Chamber?
Without revealing my age, my journey started in 1989 at the
Midlands Chamber of Industry, which was established in 1927.
Our offices were based in Grahamstown Road where I was the
secretary to one of the Group Secretaries.
2. If you weren’t an Executive Secretary and right-hand to
many, what would you be?
I would be travelling the world with my family.
3. What is your most memorable moment at the Chamber?
I am not sure exactly what year, but my most memorable
moment was when Former President Nelson Mandela visited
the Midlands Chamber of Industry. There was an electric
atmosphere the moment he entered the room. I recall the
kitchen staff and the entire team coming out to sing to him -
he was so personable and friendly.
There were quite a few other moments but another one which
stands out was when the Coega Industrial Development Zone
was launched under Kevin Wakefield’s leadership as CEO. It
wasn’t a huge milestone then, but seeing the positive growth
and positive impact that the IDZ has had on the region, I am
proud to have been around to witness it.
4. Over the years, what has been your favourite changes made
at the Chamber?
It is difficult to say, but probably moving into a modern
building.
5. What is your message to women in business?
Keep learning, keep observing! Look upwards and onwards.
QUALITY SERVICE:
Chamber Executive
Secretary Nicki Smith still
smiling after 26 years of
service.
Sandiswa Hewana sat down with one of the Nelson Mandela
Bay Business Chamber’s longest-serving staff members, Nicki
Smith, who is fondly known as our Chief Executive’s right-
hand and lifesaver to all at the Chamber.
COMPILED BY SANDISWA HEWANA

SERVING BUSINESS NEEDS (above): PERCCI Executive Team 1998 – 1999.
Captured from top: Alfred da Costa (Former Chamber CEO), below: Wendy
Jefferson (Former Operations Manager), Karen Smith (Former Financial
Controller Building Administration) and Nicki Smith (Executive Secretary).
DYNAMIC TEAM (above): Port Elizabeth Regional Chamber of
Commerce and Industry (PERCCI) Team in 2006.
A DAY ON THE GREENS (above): Nicki Smith picture during
the Business Chamber Golf Day hosted by the Port Elizabeth
Regional Chamber of Commerce and Industry (PERCCI) in 2000.
“OUR SUCCESS IN
LIFE IS DIRECTLY
RELATED TO THE
QUANTIT Y AND QUALIT Y
OF SERVICE WE GIVE.”
– Unknown
Here is a look at Nicki’s highlights from her days at the
Midlands Chamber of Industries through to the Nelson
Mandela Bay Business Chamber today:

At Volkswagen,we believethat people are atthe heart ofeverythingwe do.And asthe makerofpeople’s cars,we are passionate
about South Africans. That’s why we are committed to making a sustainable difference by investing in our communities.
In rural South Africa, many people have no access to transport – making healthcare, shops, community services and schools
that much more difficult to get to. And with education being the foundation for the future, a child’s learning should not be
hindered by their lack of mobility.
Volkswagen for Good has partnered with Qhubeka and World Vision as part of the Bicycle Education Empowerment
Programme (BEEP) to provide 1,100 bicycles to 20 rural schools in the Eastern Cape and KwaZulu Natal. Distance no
longer needs to be a barrier to education. With each child gaining mobility, school attendance increases allowing the
children to focus on their education. Every child deserves the very best chance at a better future. All it takes is one bicycle
to make a big change.
Of the 17 million children in South Africa, 11 million walk to school.
Only 40% of South African students achieve a qualification higher than Grade 9, and half of children who
enroll in Grade 1 will never pass Grade 12.
1 out of 4 girls in developing countries are not in school and 38% marry before the age of 18.
Some spend 4 hours getting to school and back daily.
The future
is in motion.
Visit vw.co.za and join facebook.com/VWSA
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Source: Bicycle Education Empowerment Programme: qhubeka.org
VOLKSWAGEN

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** Only tuition support provided.
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P A R T - T I M E P R O G R A M M E S
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• New Managers’ Development Programme *
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OCEANS
ECONOMY
UNLOCKING THE WEALTH ALONG OUR
COASTLINE AND IN OUR SEAS
More than 80% of South Africa’s trade moves by sea and
we are ranked in the top 12 global maritime trading nations.
However, the oceans economy remains an unexplored
playing field – with studies showing it has the potential to
transform the country. The Eastern Cape is one of the few
areas along the South African coastline considered suitable
for marine-based aquaculture.
LEAD STORY
Photocredit:Supplied

The maritime economy is diverse, and its specialist areas overlap
into many other areas of the economy, including:
» shipping and transport (e.g. logistics & linkages with other
transport modes, cargo movement, infrastructure, navigation,
port administration, shore-based & off-shore operations);
» marine resources (e.g. environmental management, catching
& processing); aquaculture (fish farming: shore- or sea-
based), pharmaceuticals, renewable energy, mining, oil and gas
exploration);
» tourism and leisure (e.g. cruises, hospitality, sports, recreation,
eco-tourism, property);
» manufacturing and engineering (ship/boat building, repair,
maintenance, equipment manufacturing);
» business services (e.g. banking, legal, insurance);
» support services (customs, freight forwarding, vessel and crew
management, technology); and
» regulatory/public interest (e.g. safety, environmental), security
(people and property), policing (i.e. poaching, illegal fishing),
customs, defense, legislation and policy development,
international law. (Sources: SAIMI and the Presidency)
O
PERATION PHAKISA plays a critical role in
fast-tracking delivery on some of the priorities
encompassed in the National Development Plan.
The first implementation of Operation Phakisa focusses on
unlocking the economic potential of South Africa’s oceans.
With the inclusion of Prince Edward and Marion Islands in the
southern ocean, the South African coastline is approximately 3
924 km long. A premise of Operation Phakisa is that this vast
ocean space is relatively unexplored in terms of its economic
potential.
In 2010, the ocean contributed about R54 billion to South
Africa’s gross domestic product (GDP) and accounted for
approximately 316 000 jobs. It is believed that the oceans
economy has the potential to grow the GDP contribution to
R177 billion, creating one million direct jobs by 2030.
Provincially, an Integrated Oceans Economy Strategy is being
developed for the Eastern Cape. The oceans economy has been
identified within the Top 5 priorities of the Board of Eastern
Cape Socio-Economic Consultative Council (Ecsecc) to drive
the Blue Economy strategy together with provincial government
over the next three to five years.
INTRODUCING THE BLUE ECONOMY
WHY ALL THE FUSS
ABOUT THE SEA?
WHAT IS THE MARITIME ECONOMY?

W
ITH THE POTENTIAL to unlock the wealth
of the Eastern Cape and diversify the economy
of Nelson Mandela Bay, the oceans economy is
starting with a small ripple in the business world – but has the
potential to create multiplying waves of change for the city, the
province and the nation.
Since the announcement by national government last year to
prioritise this sector of the country’s economy under Operation
Phakisa, many have started their research to capitalise on
the oceans economy – in particular the business community.
From entrepreneurs starting out as boat builders to established
multinationals specializing in offshore oil and gas exploration,
the maritime sector has a wealth of undiscovered potential for
job and prosperity creation – on condition that it is practiced in
a sustainable manner.
As the Nelson Mandela Bay Business Chamber we remain
committed to the development of an aquaculture facility in the
Bay, however, the location should be considered with great care.
This facility must be appropriately located not to impact on
other key economic activity and tourism.
Recently we welcomed Environmental Affairs Minister Edwa
Molewa’s announcement to set aside a decision to grant
environmental authorization for the development of a proposed
fish farm off Hobie Beach.
Like many other stakeholders in Nelson Mandela Bay, the
Business Chamber took a strong stance against the fish farm,
based on its location and the effect it could have particularly on
the beachfront tourism industry.
The proposed fish farm’s location in Algoa Bay should be
studied holistically, in terms of the risk to both the economy
and the environment. The economic value of our beachfront
should not be undermined – any risk to this pillar of our local
economy must be averted at all cost.
As one of the poorest provinces in South Africa, business
should – however - capitalise on the opportunities offered to
them under the umbrella of the oceans economy, as long as it is
done in a sustainable manner.
Our coastline is an untapped resource sitting there, waiting
for us to realise its enormous economic potential. However,
to support the marine sector within the Eastern Cape, we are
going to have to continue developing the areas of capacity
building and co-ordination.
The South African International Maritime Institute (SAIMI)
has made great strides in achieving greater vocational capacity
building, while the pursuit of strategic partnerships with China,
Finland, Norway and Sweden – amongst others - is equipping
academia, government and business with international best
practice in unlocking the oceans economy.
As business, we have a critical role to play in bringing the
private sector on board. Even with the benefit of all the policies
and good governance in the world, the private sector is still
called upon to drive the economy within the framework of
Operation Phakisa.
Our efforts must be co-ordinated to ensure the realisation of
the true potential of the Blue Economy, its sustainability and
responsiveness to good environmental and ocean governance.
THE BUSINESS CONVERSATION WITH KEVIN HUSTLER
UNLOCKING THE
WEALTH IN OUR OCEANS

i n f o c o m QUARTER FOUR 201522
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23www.nmbbusinesschamber.co.za
EDITORIAL
MANGANESE EXPORTS
COULD TREBLE AFTER
RELOCATION
“Looking beyond
that, there will
definitely be a growth in
job creation and increased
opportunities in the road, rail and
maritime logistic sectors,” Hustler said.
W
E ARE ONE STEP
CLOSER to removing one
of the big eyesores at the
city’s beachfront, which has plagued
residents and businesses in Nelson
Mandela Bay for many years.
Transnet Port Terminals was recently
issued with a permanent operating
license for operating a manganese
terminal at the Port of Ngqura. The
existing manganese at the Port of
Port Elizabeth will be relocated to a
new facility at the Coega Industrial
Development Zone.
EYE SOR E
The manganese
terminal at the Port
of Port Elizabeth is
being relocated to
a new facility at the
Coega Industrial
Development Zone, to
become operational
in the first quarter
of 2019. Picture:
SUPPLIED
The Nelson Mandela Bay Business
Chamber has been lobbying extensively
over the past six years with the Transnet
group and all the relevant government
departments for the relocation of the
manganese terminal, said Business
Chamber CEO Kevin Hustler. Hustler
said this had not been an easy road
for business and the citizens of Nelson
Mandela Bay, as many had been
disappointed along the way with
regards to the shifting timelines of this
megaproject.
“The relocation of the manganese and
liquid bulk terminals has been a priority
for the Nelson Mandela Bay Business
Chamber for a number of years and we
are pleased to see that we are nearing
the final goal post of achieving the
mammoth relocation of the manganese
terminal from the Port of Port Elizabeth,”
Hustler said.
The first phase of the rail upgrades
and harbour development is valued at
R2.3-billion and the manganese facility
is expected to treble our exports from 6
million to 16 million tons of manganese,
Hustler said.
He said the Nelson Mandela Bay Business
Chamber was looking forward to the
manganese terminal at Coega becoming
operational in the first quarter of 2019.
“Along with such a mammoth investment
in the new manganese facility, port
and rail infrastructure comes many
opportunities for Nelson Mandela
Bay businesses to participate in
projects relating to civil engineering,
construction, engineering works and
services companies during the upgrade
and implementation phases.”

THE MARITIME ECONOMY
AND RESPONDING TO
ITS SKILLS NEEDS
T
HE SOUTH AFRICAN INTERNATIONAL
MARITIME INSTITUTE (SAIMI) was launched late
last year to accelerate the skills development needed
for South Africa to take economic advantage of its 3 000 km
coastline and 1.5-million km2
territorial waters.
SAIMI was established in response to demand from the
maritime sector for greater coordination and responsiveness of
skills development, training, education and research in order to
support the national priority of growing the maritime economy.
SAIMI is a national institute, working with education and
training institutions, government, and business across the
diverse sub-sectors of the maritime economy. The intention is
to identify skills gaps, training needs and programmes to be
developed, and support education and training institutions in
responding to the needs of the maritime industry.
The institute is also intended to act as a catalyst for maritime
research, innovation and knowledge generation, and play an
advocacy role to support the growth of the maritime sector.
SAIMI’s head office in Nelson Mandela Bay is hosted by Nelson
Mandela Metropolitan University (NMMU) and the institute
will work nationally through a network of regional centres
in the Western Cape, KwaZulu-Natal and Gauteng, engaging
with a broad range of stakeholders in education, business and
government.
As a multi-stakeholder, multi-disciplinary institute, SAIMI
is led by a representative steering committee with members
from the South African Maritime Safety Authority (SAMSA),
the Department of Higher Education & Training (DHET),
the Transport Education and Training Authority (TETA), the
Department of Science & Technology (DST), the Department
of Trade and Industry (dti), and Transnet. The maritime
industry is represented by the Maritime Industry Association
of South Africa (MIASA) and the SA Oil & Gas Alliance
(SAOGA), and the committee is intent on broadening industry
representation. The Steering Committee is chaired by Nelson
Mandela Metropolitan University (NMMU) as the host
institution of SAIMI.
SAMSA and NMMU concluded a memorandum of agreement
in early 2014 to collaborate on the formation of SAIMI, and
appointed a project team to drive the process. SAIMI has offices
at the NMMU Bird Street Campus in Central, Port Elizabeth,
the steering committee has been established, some project work
is underway, and the recruitment process for appointment of a
CEO commenced in July this year.
The South African
International
Maritime Institute
was established
to support the
national priority of
growing the maritime
economy. Picture:
SUPPLIED
SKILLS
DEVELOPMENT

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VOX POP
YOUR VIEWS ON THE
DEVELOPMENT OF
THE PORT ELIZABETH
HARBOUR
N
ELSON MANDELA BAY is a two-port city, offering
investors a choice of two harbours - the multi-cargo
Port of Port Elizabeth and the deep seawater Port
of Ngqura. The Port of Port Elizabeth imports and exports a
variety of automotive related products as an integral automotive
hub in the region.
The Port of Port Elizabeth is also known for its leisure facilities,
and is regarded as a visiting port with the average stay of vessels
being 13 hours. Vessels arrive in the morning and passengers
embark on city and safari excursions and visit other local
attractions. The cruise liner industry is seasonal, usually starting
in October and coming to an end in April.
The redevelopment of the Port of Port Elizabeth is being
integrated into the future development plans of the city, in
particular the CBD. The Port of Port Elizabeth’s development
plans are also aligned with Project Phakisa – to become a
marine engineering hub. Further developments in the Port
of Port Elizabeth include plans for a leisure and recreational
marina.
COMPILED BY GARY BLOM AND SANDISWA HEWANA

27
Sandiswa Hewana and Gary Blom spoke to businesses at the Port Elizabeth Harbour to get their
views on the changes that are expected to come.
Photocredit:GaryBlom
MANDELA BAY DEVELOPMENT AGENCY
Nelson Mandela Bay is well-developed, but over reliant
on the secondary sector (i.e. motor manufacturing and
related industry), and does not have a primary industry
(i.e. mining) and is badly developed in the tertiary
industry (which is tourism/leisure/entertainment).
The Port/Baakens precinct between the port and the
Bridge Street Brewery is destined to become a new
tourism/leisure/entertainment precinct. The Port/
Baakens precinct planning and development process
is the primary responsibility of the Mandela Bay
Development Agency, whereas the Port Master Plan
process is the primary responsibility of Transnet.
Luvuyo Bangazi, Marketing and
Communications Manager
EYETHU FISHING
We do both fresh and frozen wholesale, as well
as the exporting of fish from our branch. We are
growing at a rapid speed, and due to this we were
experiencing space constraints and we therefore
opened a new branch at Five Ways where we have
a deli and eatery. We also had to open new cold
room storage facilities in Deal Party, as there just
isn’t enough space for us to grow in the harbour
itself anymore. We supply a lot of local businesses
with fish. We would love to see developments at
the harbour, with both retail as well as industry
specific projects. It is currently quite difficult for
customers to come down to the harbour as there
is security to get through, and there is a shortage
of parking bays that are available.
Rochelle Thomas, HR Manager
BREAK EVEN SUPPLIERS
The business has been here for 15 years and we
are quite a seasonal business, with the calamari/
chokka season closing around 22 October, and
opening again around 22 November. It would
be nice to see more developments at the
harbour, but not anything retail due to security
issues. It would be hard to control and monitor
a continuous crowd around the harbour, where
there is access to the boats. We are already
battling with theft and allowing the public to
freely enter the harbour in masses could add to
the current situation.
Christine Murray, Sales Consultant
OCEAN FRESH DELI
We are kept in the dark regarding the
developments around the harbour. We don’t
actually get any information on what they have
planned or what is happening. My business is very
weather dependant - when it is cold and rainy we
are empty and when we have hot summers days,
I run out of tables and space for my clients. More
harbour development would be nice, but it would
need to be a different variety of stores. Because
it is a small area, competition can become too
much and we cannot all offer the same thing
down at the harbour. We have our own vessels,
and we also get fresh fish from local suppliers
here at the harbour. We only serve fresh fish and
we also supply to Johannesburg. If they develop
retail space within the harbour, I hope that there
is a wide variety of places for the public to choose
from and not just seafood cuisine.
Vivian Forlee, Owner

I
T USED TO BE that small meant basic, boring and badly
finished – not much to be proud of in a boat –but Port
Elizabeth builders Orca Marine are capsizing all that and
putting seamless style and strength in the water with their range
of hand-crafted boats.
Launched late last year, Orca’s owners, brothers Myles
and Justin Dent, have deliberately positioned their all-
new, small sports utility boats to compete in a market
they say is desperately in need of an overhaul. With global
trends trimming down in favour of convenience, cost and
environmental considerations – in boats, as much as in cars and
houses - they say there’s no reason why small shouldn’t be big
on high-end quality and class.
“Traditionally, boats of this size have not enjoyed the finish and
attention to detail that we apply to our designs – many boat
manufacturers have not considered it important for this end of
the market and buyers have had little choice but to accept what
was on offer. However, there is no reason why quality should be
compromised. We’ve taken advantage of this gap in the market,”
said Myles.
With boatbuilding one of the key sectors earmarked for growth
and development by government’s drive to develop the Blue
Economy, Orca Marine is positioning itself to take advantage
of government support and export incentives in the future. The
company has recently taken up residence in a small factory in
Baakens Valley.
A seasoned ex-corporate marketing executive, Myles brings
astute marketing and business acumen to the venture, but it is
his younger brother’s dream to build his own range of boats that
has come true with Orca Marine. A composites expert, Justin
has spent his life in the boating business in South Africa as
well as 10 years in England, building and repairing boats of all
shapes and sizes.
The brothers say each vessel is a labour of love, carefully hand
crafted to exacting specifications.
BOATING DUO
Owners of Port
Elizabeth-based
sports utility boat
manufacturing concern
Orca Marine, brothers
Justin (left) and Myles
Dent, are filling a gap
in the entry-level boat
market with high
quality finishes and
stylish designs.
ONE OF THE PILLARS
TARGETED TO BE
DEVELOPED IN THE OCEANS
ECONOMY IS MANUFACTURING AND
ENGINEERING, WHICH INCLUDES
SHIP AND BOAT BUILDING, REPAIR,
MAINTENANCE AND EQUIPMENT
MANUFACTURING.
BOAT-BUILDING BROTHERS ANSWER THE CALL TO
DEVELOP THE BAY’S OCEANS ECONOMY –
O N E B O AT AT A T I M E

29
T
HE EASTERN CAPE MARITIME SUMMIT, taking
place on Friday 13 November in Nelson Mandela Bay, is
set to spur trade and investment in the region and assist
entrepreneurs and investors to understand how to tap into the
Blue Economy, increasingly hailed as South Africa's proverbial
“golden goose”.
The Eastern Cape Province with its 800 km of coastline, and
three ports, is set to become South Africa's leading hub of
maritime economic activity and while government's Operation
Phakisa had effectively placed the maritime economy well
onto the development agenda, business lacks knowledge and
resources to tangibly enter the sector, says Inkanyezi Event's
CEO Andrew Binning.
The EC Maritime Summit, Binning said, will address, at a
practical level, actual opportunities and how businesses and
entrepreneurs can access them, through case-studies and other
expert presentations.
Plenary sessions, followed by break-away streams focussed on
specific aspects such as Transport, Aquaculture and Tourism is
expected to draw over 300 national delegates. The tradeshow,
featuring up to 100 exhibiting organisations, would spur sales
and contracts between buyers and suppliers in the sector
nationally, Binning said.
“We want to provide critical information and resources without
the Summit becoming another talk shop - so opportunity and
sales are the two key themes.”'
The Summit is presented under the auspices of the Nelson
Mandela Bay Maritime Cluster with the collaboration of
Eastern Cape Socio-Economic Consultative Council, the
Eastern Cape Development Corporation, the Nelson Mandela
Bay Business Chamber, Border Kei Chamber of Business and
the Eastern Cape Department of Transport, the custodian of
Maritime transport in the region, among others.
BLUE ECONOMY
The Eastern Cape
is set to become
South Africa's leading
hub of maritime
economic activity,
boasting three ports
in the province.
Picture: SUPPLIED
FAST FACTS » 1 in 5 individuals
globally rely on
ocean food as
sources of protein.
Between 60% and
70% of the world’s
fish species are
exhausted.
EASTERN CAPE MARITIME SUMMIT
P R O M O T I N G
O P P O R T U N I T Y I N T H E
B L U E E C O N O M Y

T
HE ALGOA BAY YACHT CLUB (ABYC) is based
in the Port of Port Elizabeth and exists to, “Foster an
interest in sailing”.
All the facilities to meet this objective are provided by an active
sailing section, marina, youth sailing development programme,
hosting of local, regional, national and international regattas, a
convivial pub and excellent restaurant (The Chartroom).
ABYC is internationally acknowledged as one of the friendliest
sailing clubs - rather apt as we find ourselves in the Friendly
City.
Competitive sailing takes place every weekend throughout the
sailing season and social Wednesday Evening Sailing is open to
all who want to “try before you buy”.
Membership is open to all who express an interest and active
participation in sailing and offers many benefits.
The sport of sailing is essentially one that is fuelled by
volunteers who unstintingly give of their time and money in
promotion thereof. Volunteer members excelled themselves this
past season - which saw us hosting the 60th SAP 5O5 World
Championships, the finish of the Vasco da Gama Ocean Race
from Durban to Port Elizabeth, our premier annual regatta
SUN & SAILING
ABYC is known as
one of the friendliest
sailing clubs, and
boasts a youth
sailing development
programme.
ALGOA BAY YACHT CLUB
A PLACE OF LEISURE,
FRIENDSHIP AND SAILING
BY ALAN STR ATON

ABYC is situated within the precincts of the Port Elizabeth
Harbour just north of the National Sea Rescue (NSRI) and
Port Elizabeth Deep Sea Angling Club (PEDSAC).
ABYC Week and numerous interclub and internal regattas.
ABYC's annual interclub dinghy regatta takes place on the
North End Lake in the shadow of the iconic Nelson Mandela
Bay Stadium.
The coming sailing season is jam-packed as we will see a
number of 5O5 sailors from Europe return to train in Algoa Bay
- acknowledging that Algoa Bay offers one of the best sailing
areas in the world. The Vasco Da Gama will finish in Port
Elizabeth with an increased fleet of ocean-going yachts, ABYC
will host the prestigious IRC Nationals with approximately 30
boats travelling to compete (IRC Nationals attracts the top big
boats in South Africa) at the same time as ABYC Week and we
will round the season off with the Laser Nationals which will
see around 60 boats competing.
Our sailors compete in the highest levels and have acquitted
themselves well on a national and international level.
Photocredits:GaryBlom

TAKING RESPONSIBILITY BY SHARING
SOLUTIONS AND BEST PRACTICE
Nelson Mandela Bay businesses are committed to preserving
our natural resources. Whether it is finding innovative
solutions for load-shedding, turning recycling into a lucrative
business or addressing energy concerns in the city, the
business community is leading the way to
establishing a greener Bay.
FEATURE STORY
GREENING
THE BAY

A
T THE RECENT POWER-ON EXPO in Walmer Park Shopping Centre, companies in Nelson Mandela Bay showcased
options to overcome the dreaded headache of load-shedding.
The Nelson Mandela Bay Business Chamber Sustainability and Renewable Energy Task Team were in attendance and from the
products and services displayed, selected these three most common options available to residents and businesses in overcoming
load-shedding.
Here is a look at the Pro’s and Con’s of each of these options:
So what about an UPS?
Unfortunately, this term has created a lot of confusion as an UPS is designed for a short burst of loss of power and not the two
hours we traditionally have for load-shedding. It also consumes a lot of electricity and ultimately, like the back-up system, it is not
assisting the situation of stress on the national grid but adding to it.
In selecting a solution for your business or home, it is vitally important to ensure that the inverter is Pure Sine Wave.
Microcare Research and Development Director Nelius De Lange explains: “Non Pure Sine Wave Inverters such as Modified Sine
Wave are not designed to run a load on a daily basis but rather for emergency back up only, such as an UPS. Common load-
shedding kits have built-in batteries where the inverter is reliant on the batteries depleting before the system overheats. It is best to
speak with a reputable company before purchasing a system for your office or home.”
With the South African market being flooded with load-shedding solutions and products, businesses and residents need to be
more informed about what is available and who to speak to for a sustainable solution.
GREENING EXPERT ADVICE
N E L S O N M A N D E L A B AY
G E T S P OW E R E D O N
COMPILED BY GARETH BURLEY
SOLUTION PRO’S CON’S
Back-up System
(with batteries & bi-directional
inverter)
R5 000 – R20 000
» Affordable;
» Portable, so it is easy to work with;
» Gives an immediate solution;
» Keeps essentials on during
load-shedding.
» Needs the grid to charge;
» Can be safety concerns due to the
cabling;
» Not modular so cannot add onto it.
Start up Solar solution (inverter and
panels with solar charger)
R25 000 – R65 000
» Clean energy from the sun;
» Gets you started towards securing
your own energy future;
» Have all the benefits of an inverter
but is modular so you can add on.
» Still dependant on the grid;
» Price starts becoming a factor.
Full Solar Installation
R65 000 – R200 000+
» Can generate all your electricity
required;
» Free from load-shedding;
» Able to manage our energy use;
» Can calculate Return on Investment.
» Expensive and needs to be seen as
an investment;
» System size is limited to roof space
and direction.

ELECTRICIT Y UPDATE
A L M O S T R 3 0 0 - M I L L I O N
S AV E D F O R R E S I D E N T S
A N D B U S I N E S S E S I N
T H E C I T Y
E
LECTRICITY CUSTOMERS in Nelson Mandela Bay
will this year collectively save R296 336 000, thanks to an
earlier decision to reject additional electricity charges.
The National Energy Regulator (Nersa) rejected Eskom's
application to raise the price of electricity following public
hearings in June, which was attended by a delegation
representing the Nelson Mandela Bay Business Chamber.
In a recent presentation to the Nelson Mandela Bay Business
Chamber Board, one of the delegation members, Strategic
Resources task team chair Angus Clark, calculated the amount
in savings for the city’s customers, based on the metro’s annual
electricity sales and Eskom’s proposed initial full increase of
25.3%.
Safeguarding the interest of business from uncompetitive
electricity prices, we were the only business organisation of its
kind to present at the August hearing.
During his presentation Mertens stressed that the winter tariffs
for businesses in Nelson Mandela Bay were detrimental to
industry, experienced in recent times, with some businesses in
the city reporting to be down on their knees – facing possible
closure – due to the unaffordability of electricity tariffs during
the winter months.
“Your Nelson Mandela Bay Business Chamber is out there
ensuring the interests of all businesses are protected - big
or small - to safeguard their sustainability and international
competitiveness. We sincerely acknowledge and appreciate the
time, great effort and expertise poured into such engagements
by our volunteer task team champions,” Hustler said.
SAVING PER YEAR
LARGE
BUSINESSES» R3.3
MILLION
R157 000
R15 720
MEDIUM
BUSINESSES»
SMALL
BUSINESSES»
“Business as a whole is appreciative of
Nersa’s decision to reject Eskom’s request
for additional funding and keeping Eskom’s
increase to 14.24%,” Clark said.
Not only will residential customers, feeling the pinch of the
current economic downturn, experience some relief, but it
could mean the difference between keeping the doors open for
some companies in the city.
Clark calculated the total household saving on average per
home or family to be R2 358 per year.
The Nelson Mandela Bay Business Chamber is leading the way
in the country in terms of challenging uncompetitive electricity
tariffs, with High Energy User Group champion David Mertens
in August representing the Business Chamber’s interest at
another Nersa public hearing on the Cost of Supply (COS)
Framework.
THE APPROXIMATE ELECTRICITY
SAVING PER CATEGORY OF
BUSINESS AMOUNTS TO:

GREENING THE BAY
E N V I R O N M E N TA L I S T S
W H O G R A B B E D A N
O P P O R T U N I T Y A N D
K E P T I T S I M P L E
T
HE WASTE TRADE COMPANY, the Nelson
Mandela Bay Business Chamber’s recycling service
provider, shares the small steps that businesses can take
to “go green”.
Vicky du Toit, Marketing manager at The Waste Trade
Company, tells the story behind ‘waste’.
What inspired the start of the business?
Way back in 1998, The Waste Trade Company was started as a
value added service to General Motors South Africa (known as
Delta at the time). Howard Bulkin, owner of The Waste Trade
Company, saw an opportunity to derive worth from waste whilst
creating employment and benefiting the environment. At The
Waste Trade Company, we are all environmentalists at heart - the
ethos filters down from executive management to all departments.
What are the environmental benefits of recycling?
By recycling we conserve our natural resources, as the
production of new products using recycled material uses less
raw material as well as energy. The worldwide waste epidemic is
also being addressed by recycling as less waste is being dumped
illegally or sent to landfills. Employment opportunities are yet
another benefit, but job creation in the recycling industry is
GOING GREEN
Waste Trade Company
Owner, Howard Bulkin
seeing his vision
come alive.
directly linked to the consumer demand for recycling.
By recycling, you are positively impacting the economy.
What is the biggest misconception about recycling?
If a product has a recycling sign on it, it can be recycled. This is
not necessarily true. We have to keep in mind that our products
are not always sourced and packaged locally. A product that can
be recycled in another country might not be recyclable in South
Africa yet. The consumer needs to research what the local
recyclers are collecting. Again we stress the waste hierarchy,
"reduce, reuse, recycle".
What is the best recycling tip?
Keep it simple. You do not need fancy bins or a lot of space to
start recycling. Just start by keeping recyclables in a separate
bag and further separate them at your nearest drop-off station.
What can businesses start doing today to kick-start their
recycling initiatives?
Three ingredients are key to the success of a recycling initiative:
Resources, Education and Motivation.
What advice would you give to someone who wants to start a
similar project?
Having the right motives is very important as the waste
industry can be quite challenging. A true environmentalist will
see an opportunity where others might see a problem.
What other greening projects do you have?
We are very proud of our Schools Recycling Project. This initiative
started in 2009 and has grown since then to over 250 clients. We
are currently collecting just over 50 tons of recyclables a month
from this project. The objective of this project is to educate
children about the importance of preserving our natural resources
and diverting waste from landfill. The Schools Recycling Project
is not only limited to schools - we encourage churches, NPO's and
retirement villages to sign up as well.
COMPILED BY SANDISWA HEWANA

P
LANS for a liquefied natural gas (LNG) power plant in
Port Elizabeth will soon become a reality.
Coega Development Corporation (CDC) recently announced
that the project, set to be one of the most efficient Greenfield
capacity expansion options for South African energy security,
will now enter the next stage of development.
The CDC recently issued a tender notice for an environmental
impact assessment (EIA) for the combined cycle gas turbine
(CCGT) power facility, said CDC energy sector manager
Sandisiwe Ncemane.
Ncemane said the project will support government’s Integrated
Resource Plan (IRP) and a 2012 Ministerial Determination
allocation of 2,652MW for energy from natural gas between
2021 and 2025.
The project also slots into Operation Phakisa – government’s
“Big Fast Results” programme to unlock economic growth and
development through an Oceans Economy.
According to Ncemane five environmental impact assessment
studies supporting a gas-to-power solution have been
undertaken since 2006. The latest tender notice for an EIA calls
for the actual development of a gas-fired plant in the Coega
IDZ, which links up to a LNG terminal and berth at the Port of
Ngqura.
The integrated project between the Ngqura deep seawater port
and the CDC entails a special berth which makes provision
for cryogenic sea vessels or LNG carriers, a processing facility
that will convert LNG into gas and a 2km pipeline to the power
plant that will generate electricity from natural gas. The distance
from site for the gas plant is 4km from the Dedisa substation,
and this will significantly reduce costs.
The proposed combined cycle gas turbine (CCGT) plant will
be the second power plant in the Coega IDZ after the Dedisa
Peaking Power Plant, a liquid fuel open cycle gas turbine with
a 342-megawatt (MW) generation capacity. Recently, Dedisa
transferred power to the national grid during a test exercise and
the facility is scheduled to go online later this year.
“Up to this point in time, we
[Coega] and various state organs
undertook a lot of valuable preparatory
work. The technical feasibility and financial
viability of the project had been broadly
established,” Ncemane said.
ENERGY HUB
The Dedisa Peaking
Power Plant, a liquid fuel
open cycle gas turbine,
is located in the Coega
Development Corporation
(CDC) in Nelson Mandela
Bay. Coega released a
tender call for a second
gas-to-power plant, in
addition to Dedisa, for the
IDZ. Picture: SUPPLIED
SECOND COEGA POWER PLANT TO IMPROVE
S O U T H A F R I C A’ S
E N E R G Y S E C U R I T Y

C
ONSTRUCTION WORK has started on South
Africa’s latest four star green building – the first of its
kind in the Eastern Cape.
The modern three-storey office block will be located within
the Baywest City precinct in Port Elizabeth’s western suburbs,
along the N2, and its construction signals the greater roll-out
of development at Baywest City following the opening of the
project catalyst, the R1.7-billion Baywest Mall in May. Phase
One of the R6-billion Baywest City development includes 2
000 residential opportunities, office and commercial space,
light industry, a private school, hospital, and a hotel. The
building, which is due to open towards the end of next year,
is expected to be the first green rated commercial office block
for the Eastern Cape. The only other green rated projects in
the province, classified as “public and education buildings” by
the Green Building Council, includes Grahamstown’s National
English Literature Museum (5 star) and Port Elizabeth’s NMMU
Business School (4 star).
Baywest City managing director Gavin Blows said the green
office block was the first of many more to come for the precinct.
Developers are focused on positioning the development as eco-
friendly, having set aside 20% of the 320 ha Baywest City site for
the protection of rare and indigenous fauna and flora.
“There is immense interest in developments of this calibre,” said
Blows. “Port Elizabeth has nowhere else to grow but into the
western suburbs, which is why Baywest City is ideally located
for the future of the city.”
A FIRST FOR THE PROVINCE
N E W F O U R - S TA R
G R E E N O F F I C E B L O C K
AT B AY W E S T C I T Y
Edward Brooks, director of architects on the project, Activate,
said the demand for green rated buildings had grown globally.
“These sorts of developments are generally more pleasant to
work in, and tend to attract higher-end tenants. Demand has
grown among the high business user category,” said Brooks.
“It might come with a greater capital outlay of between five
and 20%, but one needs to look at the landscape of electricity
scarcity and the energy savings the building will make over
time.” The office block would boast a 40 kilowatt roof mounted
solar photovoltaic system, a rainwater harvesting system,
and highly insulated walls, roofing and flooring to maintain
a moderate internal temperature in spite of fluctuating
external temperatures. The solar system would provide 15%
of the building’s energy requirements, said Brooks. Also, as
a requirement for the green rating, basement parking would
give preference to bicycles, motorcycles and energy-efficient
hybrid vehicles. An indigenous landscaped garden around the
building would be maintained using the harvested rainwater,
said Brooks. Ann-Mari Malan from AGAMA Energy, a green
building consultancy firm, said the sustainability aspects
implemented in green building projects have a positive
environmental and financial impact.
“Given the high energy costs and water scarcity in South Africa,
implementing green building practices sends out a strong
message about an organisation’s commitment to sustainability
whilst promoting a positive image with stakeholders, customers
and employees,” she said.
GOING GR EEN
Development on South Africa’s
latest green star rated building,
a four-star green office block
in Port Elizabeth, signals the
roll-out of the greater Baywest
City precinct development.
The modern office block is the
first green rated office block in
the province, and the first of
several for Baywest City, say
developers.

 1919
De Lan
word g
 3 Se
Jan Sm
die Sui
Afrikaa
Party k
bewind
eerste
van Su
 20 September 1989
F.W. de Klerk van die Nasionale
Party word verkies as staats-
president van Suid-Afrika. Die
Burger se verslaggewers Ebbe
Dommisse en Alf Ries skryf
later ’n boek, Leierstryd, oor die
binnegevegte wat voor hierdie
magsoorname plaasgevind het
in die Suid-Afrikaanse politiek.
 11 Februarie 1990
Nelson Mandela word ná 27
jaar vrygelaat uit die tronk.
 1990
Dr. Ebbe Dommisse volg
Wiets Beukes op as redakteur.
 1 Mei 1993
Oosterlig word ingelyf by
Die Burger en die naam van
die publikasie word verander
na Die Burger Oos-Kaap.
 1948-verkiesing
Dr. D.F. Malan (links) se Nasionale
Party beëindig die bewind van die
Verenigde Party ná “ ’n titaniese
stryd deur Die Burger”.
 4 Junie 1948
Dr. D.F. Malan word ingehuldig as
eerste minister van Suid-Afrika.
 1951
Max Theiler ontvang
die Nobelprys in
geneeskunde vir die
ontwikkeling van ’n
entstof vir geelsug, die
eerste Suid-Afrikaner
om ’n Nobel-
toekenning te kry.
 1954
Piet Cillié volg Phil Weber op
as redakteur en dien 23 jaar tot
1977. Hy stig die joernalistieke
departement aan die
Universiteit van Stellenbosch.
100jaarsenuusopjouvoorstoep
19151914 1916 1917 1918 1919 1920 1921 1922 1923 1924
1954 1953 1952 1951 1950 1949 1948 1947 1946 1945
1955 1956 1957 1958 1959 1960 1961 1962 1963 1964
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
 1918
Die “Spaanse Griep” tref Suid-Afrika. Die
epidemie wis talle van die koerant se
personeel uit, maar dit verskyn steeds
klokslag. Seker die swaarste slag wat Die
Burger getref het, was die dood
van C.J.L. Ruysch van
Dugteren en Fred Dormehl,
die eerste hoofbestuurder
van die Nasionale Pers.
 11 November 1918
Die Duitsers stem in tot die beëindiging van
die Eerste Wêreldoorlog.
 26 Julie 1915
Eerste De Burger verskyn.
Die meeste van die
redaksielede is skaars ’n
maand vooraf aangestel.
Dr. D.F. Malan is die
eerste redakteur.
 1915
D.C. Boonzaier is die
eerste spotprent-
tekenaar. Hy het veral
die eerste minister, Louis
Botha, geteiken.
 1916
Eerste De Huisgenoot-
tydskrif verskyn.
 1917
Eerste vroue-
joernalis, Sarah
Goldblatt, kry ’n
vaste aanstelling.
 1917
Het Volksblad in Bloemfontein
word deur Naspers oorgeneem.
Dit het tweeweekliks verskyn en
is die oudste bestaande
Afrikaanse koerant. Die Burger is
egter die oudste Afrikaanse
dagblad.
 18 Desember 1914
Naspers se oprigtingsvergadering word by
Heemstede-huis op Stellenbosch gehou, te midde
van die Rebellie. Die rebellieleier, Jopie Fourie, is
daardie week in hegtenis geneem en is
die Sondag tereggestel.
 1957
W.E.G. Louw word
Die Burger se eerste
kunsredakteur en
begin die kunsblad op
bl. 2 van die koerant.
 2 September 1958
Dr. H. F. Verwoerd
van die Nasionale
Party kom aan bewind
as eerste minister van
Suid-Afrika.
 1965
Die Beeld, ’n Sondagkoerant,
word gestig en gee aanleiding tot
een van die felste persstryde in
die Suid-Afrikaanse geskiedenis.
Verwoerd word deur
Dimitri Tsafendas
vermoor en die droom
van Groot Apartheid
sterf saam met hom.
 Augustus 1945
Amerika werp atoo
uit die lug op die Ja
stede Hirosjima e
 1945
Dr. Phil Weber word
aangestel as
redakteur en dien tot
1954 in hierdie amp.
 27 April 1994
Suid-Afrikaners stroom na die
stembusse vir Suid-Afrika se
eerste demokratiese verkiesing.
 10 Mei 1994
Nelson Mandela (regs) word
ingehuldig as die eerste
president van die nuwe
Suid-Afrika wat demokraties
verkies is.
 24 Junie 1995
Francois Pienaar
lei die Springbok-
span wat in die
eindstryd van die
Wêreldbeker-
rugbytoernooi op
Ellispark teen
Nieu-Seeland se
All Blacks met
15-12 seëvier.
 14 Junie 1999
Die ANC se Thabo
Mbeki word aangestel
as president van
Suid-Afrika.
Pierre Steyn berig uit Washington
oor die terroriste-aanval wat New
York se World Trade Centre in puin
lê en tot duisende mense se dood lei.
 20 Oktober
Die Springbok
rugbytoernooi
die eindstryd m
 2006
Henry Jeffreys
neem by Rossouw
oor as redakteur.
 2000
Arrie Rossouw
word aangestel
as redakteur.
 4 Desember 1967
Die Burger is die eerste
koerant wat berig oor die
Suid-Afrikaner dr. Christiaan
Barnard, wat die eerste
suksesvolle hartoorplanting,
op Louis Washkansky, doen.
 31 Augustus 1997
Willem Pretorius
berig uit Londen oor
die ongeluk in Parys,
Frankryk, waarin
Prinses Diana
dood is.

9
ndbouweekblad
gestig.
eptember 1919
muts van
id-
anse
kom aan
d as
minister
uid-Afrika.
 25 Januarie 1981
’n Vloed tref Laingsburg wanneer die Buffels-
rivier sy walle oorstroom. Vandag is 72 mense
steeds vermis, want slegs 32 lyke is gevind.
 1981
Die Burger skuif, saam met die res van
Naspers, van Keeromstraat 30 na die
Sanlam-gebou in Roggebaai en
herdoop dit na die Naspers-sentrum.
 1937
Die Oosterlig word in Port Elizabeth
gestig as susterskoerant van Die Burger.
 1941
T.O. Honiball volg Boonzaier
op as spotprenttekenaar.
Die Tweede Wêreldoorlog (regs)
breek uit wanneer die Duitsers Pole
binneval.
Jan Smuts van die Verenigde Party
kom aan bewind as eerste minister
van Suid-Afrika en die stryd van die
Natte teen die Sappe begin.
Graﬁka24
1925 1926 1927 1928 1929 1930 1931 1932 1933 1934
1944 1943 1942 1941 1940 1939 1938 1937 1936 1935
1965 1966 1967 1968 1969 1970 1971 1972 1973 1974
1984 1983 1982 1981 1980 1979 1978 1977 1976 1975
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
 1921
Naspers druk sy eerste
Engelse boek,
Republicans and Sinners
deur C.J. Langenhoven.
 30 Junie 1924
Die Nasionale Party
kom aan bewind
onder J.B.M.
(Barry) Hertzog.
 1924
Dr. A.L.“Ysterman” Geyer volg
Malan op as redakteur, toe Malan as
parlementslid vir die Nasionale
Party verkies word. Geyer dien vir 21
jaar in hierdie pos – naas Piet Cillié
die tweede langste ampstermyn
van ’n redakteur by Die Burger.
 29 Oktober 1929
New York se aandelebeurs val en die
Groot Depressie tref die wêreld.
 3 Januarie 1922
Die Burger se eerste Afrikaanse hoofartikel
verskyn. Die skrywer van hierdie artikel was dr.
H.D.J. Bodenstein, die assistent-redakteur. Kort
daarna word die mashoof verander na Die Burger.
 1922
Die eerste boek in ’n swart taal
word deur Naspers gedruk.
 1922
Die skrywer Maria Elizabeth
Rothmann, beter bekend as M.E.R., word
aangestel as Die Burger se eerste vroueredaktrise.
 1974
Die dagblad, Beeld, verskyn in
die noorde van die land met
Schalk Pienaar as redakteur.
 9 Oktober 1978
P.W. Botha volg
John Vorster op as
eerste minister
van Suid-Afrika.
 1977
Wiets Beukes,
voorheen van Volksblad,
word aangestel as
redakteur.
 1975
Fred Mouton neem by
Honiball oor en is
vandag nog Die Burger
se spotprenttekenaar.
5
ombomme
apanese
en Nagasaki.
 31 Julie 2012
Die redelik onbekende
jong Suid-Afrikaanse
swemmer Chad le
Clos verras deur die
Amerikaanse
swemmer Michael
Phelps in die 200 m-
rugslag te klop by die
Olimpiese Spele in
Londen.
r 2007
kke wen die WB-
i deur Engeland in
met 15-6 te klop.
 2009
Jacob Zuma van die ANC
word verkies as president
van Suid-Afrika.
 2010
Bun Booyens word
aangestel as die negende
redakteur van Die Burger
en staan steeds aan die
stuur van hierdie koerant.
 11 Maart 2011
’n Tsoenami verwoes die noord-
ooste van Japan ná ’n aardbewing
van 9 op die Richterskaal ongeveer
370 km onder in die see in.
Byna 16 000 mense sterf.
 6 Desember 2013
Madiba sterf.
 26 Julie 2015
Die Burger vier sy
eeufees!
 20 Julie 1969
Die Amerikaanse ruimte-
tuig, Apollo 11, land op die
maan en Neil Armstrong
word die eerste man wat
op die maan stap.
’n Aardbewing tref Tulbagh, Ceres
en Wolseley. Dit meet 6,5 op die
Richterskaal en 11 mense sterf.
 1970
Rapport verskyn vir die eerste keer op
straat, ’n samevoeging van Nasionale
Pers se Die Beeld en Perskor se Dagbreek.

YOU DON’T BUY A TRUCK,
YOU JOIN A TEAM.
McCannJHB911567

43
ADVERTORIAL
ISUZU TRUCK SOUTH
AFRICA ACQUIRES 100%
STAKE IN KANU AND ACT
I
SUZU TRUCK SOUTH AFRICA recently announced
the acquisition of Port Elizabeth based KANU Commercial
Body Construction (PTY) Ltd and Automotive Chassis
Technologies (PTY) Ltd (ACT) in a 100% buyout of each entity,
effective from August this year.
The transaction will see Isuzu Trucks change from being a
typical commercial Original Equipment Manufacturer (OEM)
to an enterprise type of business that has the capacity to initiate
and build products according to client specifications.
“This acquisition complements our growth strategy. We believe
the acquisition of KANU and ACT will definitely enhance
our current business structure. The move to acquire these
entities will centralise the process of buying our trucks where
everything will be processed from one central point of contact,”
says Isuzu Trucks South Africa COO, Craig Uren.
The directors of Isuzu Truck South Africa, with full support of
Isuzu Leadership in Japan, have developed new strategies and
plans with structures in place to lead the business into this new
business cycle.
“Our scope of work and business is no longer only focused
on what leaves the factory gate. Together with our dealers
For more information, call
08600 47898 or visit
www.isuzutrucks.co.za
and supplier base, Isuzu Truck South Africa will have a more
integrated relationship with current and future customers in the
life of their trucks.”
This acquisition also comes with a new appointment within the
business. Current Plant Manager, Mr Sipho Sandla will move
into a new role as General Manager leading the KANU/ACT
operation in Port Elizabeth, with outgoing owner of KANU, Mr
Tony Wright, staying on in an advisory capacity for a minimum
of 12-months to ensure a smooth transition. In 1991, Sipho
graduated with a Higher National Diploma in Mechanical
Engineering (B.Tech). To date, Sipho has been working as an
engineer in the automotive manufacturing sector for over 23
years and has vast experience in all aspects of the assembly line.
“Isuzu Truck South Africa will continue to be one of the major
contributors in the Eastern Cape’s Gross Domestic Product
(GDP). We believe that every truck we sell into the market
possesses an economic opportunity with great return on
investment. The more we sell, the more economies we create,
and with that, the creation of new job opportunities. South
Africa and the continent at large need greater and stronger
growth for our economies to develop,” said Uren.
(Left) Sipho Sandla, General
Manager of KANU/ACT
Operations for Isuzu Truck South
Africa and Craig Uren, Isuzu
Truck South Africa COO.
(Right) Isuzu Trucks fitted
with bodies built by KANU
Commercial.
ISUZU TRUCK S

KPMG would like to congratulate
CapeTownTax Partner, DeborahTickle,
on her appointment to the DavisTax
Committee.
The Committee’s objective is to assess South Africa’s
tax policy framework and its role in supporting
the objectives of inclusive growth, employment,
development and fiscal sustainability.
“This is a well-deserved accolade and we wish
Deborah well for her tenure.”

Tanette Nell is responsible for running the Eastern Cape tax practice of KPMG where she is involved in
providing tax solutions to clients. She joined the firm in 1998 and is a qualified chartered accountant with a
Higher Diploma in Taxation.
Tanette Nell
T
HE DAVIS TAX COMMITTEE (DTC) provided its views and recommendations with regards to seven reports released
by the Organisation for Economic Co-operation and Development (OECD) in September 2014, in respect of the BEPS
initiative, from a South African perspective. This article summarises certain transfer pricing related recommendations
made by the DTC in its Interim Report “Addressing Base Erosion and Profit Shifting in South Africa” (DTC BEPS Interim Report)
published in December 2014.
» ACTION 8: Transfer pricing and intangibles
Action 8 of the BEPS Action Plan relates to intangibles and the need
to ensure that the prices charged in respect of the use or transfer
of intangibles are in line with value creation. However, the DTC
makes certain general and intangible specific transfer pricing related
recommendations in its DTC BEPS Interim Report on Action 8,
which are set out below:
The DTC recommends that specific reference to the OECD Transfer
Pricing Guidelines should be included in SA’s transfer pricing
legislation to ensure that these are legally binding not only on
the taxpayer, but also on SARS. Currently, Practice Note 7 makes
reference to the OECD Transfer Pricing Guidelines, but this is
not legally binding. In addition, it is recommended that a binding
General Ruling on the SA transfer pricing legislation should be
enacted, which should, while not departing from the OECD Transfer
Pricing Guidelines, include a set of principles reflecting the South
African reality. Furthermore, in order to appropriately enforce the
South African transfer pricing rules, it is recommended that SARS
increases, through training and capacity building, the effectiveness
of its transfer pricing unit. Furthermore, in order to appropriately
enforce the South African transfer pricing rules, it is recommended
that SARS increases, through training and capacity building, the
effectiveness of its transfer pricing unit.
» ACTION 13: Transfer pricing documentation
BEPS Action 13 addresses the need to update the guidance on transfer
pricing documentation, and the 2014 deliverable for the OECD/
G20 BEPS Project therefore provides guidance on transfer pricing
documentation which includes country-by-country reporting. In SA,
the onus to transact at arm’s length, and, ultimately, to make a transfer
pricing adjustment, if required, is with the taxpayer. Thus, while
there is no legal requirement for a taxpayer to have transfer pricing
documentation in place, it would be in the best interest of a taxpayer
to prepare and maintain transfer pricing documentation. The DTC
seems to indicate that transfer pricing documentation should be made
compulsory, following the OECD recommended three-tiered approach
(Master File, Country File and Country-by-Country reporting),
to encourage a consistent approach, and to help limit the cost of
preparing, often expensive, transfer pricing documentation. Further,
given that Practice Note 7 is effectively outdated in that it refers to
legislation that has, subsequent to Practice Note 7’s introduction been
amended, the DTC recommends that the SARS guidance be updated
to be in line with the current OECD Transfer Pricing Guidelines. The
OECD suggests that documentation be reviewed and, if necessary
updated annually, and that, in addition to that, database searches be
updated every three years. The DTC therefore recommends that SARS
considers adopting this guidance in the SA transfer pricing guidance,
to clarify the approach followed by SARS.
Associate Director: KPMG tax services
BUSINESS ADVICE
A LOOK AT BASE EROSION
& PROFIT SHIFTING (BEPS)

Dubennette Moolman
Dubennette Moolman holds a BProc from the University of Port Elizabeth and is a qualified attorney, notary
and conveyancer specializing in property related matters with almost 20 years of experience.
S
ECTION 34 of the Insolvency Act 26 of 1936 (Section
34) essentially affords protection to creditors against
near-insolvent debtors who in desperation arrange quick
sales of their business or assets at a discount in an attempt to
collect “some” money for themselves before being declared
insolvent.
Section 34 therefore requires that the debtor gives advance
notice of the impeding sale of business or assets by way of
an advertisement in the Government Gazette and in local
newspapers, so that the creditors who would be prejudiced by
the quick sale have the opportunity to institute proceedings to
prevent the sale from proceeding.
It is clear that Section 34 only applies to a trader as defined in
the Act and to a sale otherwise than in the ordinary course of
business.
To better explain, I will refer to the case of McCarthy v Core
2007. A transport company was in financial difficulty and
sold trucks in its fleet to a third party without advertising the
impeding sale. The transport company was then subsequently
liquidated and the liquidator invoked Section 34 in an attempt
to declare the sale void. If the sale was declared void the third
party would have to return the trucks.
The Cape High Court found that the transport company was a
trader and therefore Section 34 applied and the fact that there
was no publication rendered the sale void. The case was taken
BUSINESS ADVICE
ARE YOU SELLING YOUR
BUSINESS OR ASSETS?
on appeal and the appeal court, when rendering its decision,
provided an authoritative guideline as to when a creditor/
liquidator may use the remedy afforded by Section 34, namely:
• The debtor falls within the definition of a “ trader” in that its
core business must be one of buying and selling;
• The sale of the asset or business falls outside of the ordinary
course and scope of the debtor’s business; and
• The sale is not advertised in a manner prescribed in Section
34.
If the notices are not published or published outside of the strict
time periods as set out in Section 34, then the transfer that took
place will be void against the creditors and the liquidator if the
business is liquidated within a period of six months after the
transfer of the business or assets.
In practice the parties can elect not to advertise, however, if
the sale is not advertised, then the parties need to record in the
sale agreement that the seller indemnifies the purchaser against
any and all loss or damage it may suffer as a consequence of the
decision not to advertise.
Although the choice can be recorded, it has been my experience
that the financial institutions who grant loans for the purchase
of immovable property forming part of the business or assets
being purchased are insisting on the publication in terms of
Section 34. My advice is: advertise in terms of Section 34. It’s
better to be safe than sorry.
Director & Head of the Conveyancing Division: Joubert Galpin Searle

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to decision making. We are Grant Thornton and it’s what we
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potential for growth.
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BUSINESS ADVICE
A CHANGING TAX
LANDSCAPE
Tax Partner: Grant Thornton Cape
David Honeyball
David Honeyball was previously a founding partner of BDO in Port Elizabeth, which merged into Grant
Thornton, and prior to that a tax partner at KPMG. He has had extensive experience in advising large family-
owned businesses, national and multinational companies and their shareholders in the areas of corporate tax,
international tax, individual tax, estate planning, capital gains tax and indirect taxes.
R
ECENTLY we have seen some interesting
developments when it comes to the taxation of trusts.
SARS and government have mooted for years that they
would look at the use of trusts in tax planning as there is a
general perception from SARS that trusts are used as a tool to
avoid taxation and not as estate duty tools.
The Davis Tax Commission has finally released its report
on Estate Duty. The report is likely to make many taxpayers
unhappy as far as some of the suggested provisions are
concerned.
Part of the solution which the Davis Tax Commission
recommends is a more aggressive manner to tax trusts.
The estate duty amendments include:
• Withdrawing the principle of inter-spouse estate duty and
rollovers;
• Removing the inter-spousal donations tax exemption, which
permits tax free donations of substantial cash amounts in
anticipation of death;
• Amending the donations tax exemption of bona fide
contributions made by a donor for the maintenance of any
person by specifying the various categories that of
expenditure that can be donated;
• Increasing the primary estate duty rebate from the current
level of R3.5-million to R6-million.
They plan to leave the estate duty and donations tax rates at
their current level of 20%.
As far as trusts are concerned, the plan is also to maintain the
tax rates at 41%.
The amendments will include:
• Repealing the deeming provisions of Section 7 and 25B
in respect of South African resident and non-resident trust
arrangements;
• Taxing trusts as separate taxpayers;
• Not attempting to implement transfer pricing adjustments
in instances where financial assistance or interest free loans
are advanced to trusts.
Essentially taxpayers who wish to continue using trusts can
continue to do so. Upon the sale of assets the trust will be taxed
on the capital gain and the tax planner will not have the benefit
of distributing the capital gain to beneficiaries and having the
lower effective capital gains tax as a result of the individual’s
lower tax rate. My advice is not to panic at this stage. We have
no idea which provisions will be implemented and it is expected
that taxpayers will be given advance warning of any legislative
changes. I believe that SARS is going to be looking at various
additional ways in order to generate more revenue for the
fiscus. These methods are becoming far more aggressive and
taxpayers are urged to ensure that their tax affairs are in order
to avoid any potential penalties and interest being imposed.
What seems to be clear is that SARS is going to explore all
avenues available to them to maximize tax collections and
increase revenues over the next few years by way of enforcing
compliance and the introduction of new legislation.

Income tax – an
international perspective
The increased volumes and
complexity of international
trade has resulted in
Governments world-wide
having to increase the
capability of their tax
systems to deal with the
transactions of global
citizens. There is also an
underlying tug of war
between Governments in
respect of where income
generated by global citizens
should be taxed.
In this regard South Africa
(“SA”) has done its fair
share to keep up with the
pace. International tax
sensitivities also extend
beyond the normal
transfer pricing (“TP”)
considerations for cross
border related party
transactions. There are
considerations for both
outbound and inbound cross
border transactions.

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