2021 Newsletter July Archives - Business Directory

Protect our Trade Routes and Corridors

Protect our Trade Routes and Corridors

Middelburg is positioned so that we have access to several trade routes and corridors. We use the N4, N12, N11 and other roads to reach our markets and get the raw materials we need to do business. These routes need to be protected to safeguard our economy.

In Middelburg, we were safe, and our community stood together this week, with the riots in Gauteng and Kwazulu Natal. Unfortunately, our businesses have also been affected by their activities. One of our economic advantages is that we are well located halfway between our market and access these trade routes.

Currently, the COVID lockdown delays the delivery of products for our businesses by weeks, and international trade routes to our trading partners’ countries are blocked. With the disruption at the Port of Durban, some members have had to take a moment to decide, “Do I report Force Majeure, or not?”

South Africa was the victim of truck attacks that not only destroyed property but also claimed lives. Why did the South African Police Service allow another escalation of senseless destruction this week? We are concerned that the recent spike attacks on the N4 may also escalate. The criminals caught must receive the harshest punishment.

The closure of the Port of Durban and parts of the N2, N3 and N4 in recent days with the senseless looting has severely impacted the supply chains and trade routes that we rely on in Mpumalanga. The massive short-term consequences are visible when looking at the pictures of what happened in Durban and Pietermaritzburg. MCCI is concerned about the even more devastating long-term consequences for everyone in this country.

The import and export of goods must be brought back into balance: The flow of goods must be reintegrated into the system. Vital goods need to be prioritised. Hard lessons were learned during Lockdown 5, and we do not need a repeat of regulations that attempt to impose artificial restrictions on the natural flow of goods, such as the ill-fated attempt to define “intended destinations”.

South Africa needs all key players to mitigate the disastrous situation. The supply chain is a living organism that does not tolerate interruptions. Like our country, it depends on the constant and unimpeded functioning of all its interlinked components.

FUELING A HYDROGEN ECONOMY Critical role for IDC in development of local hydrogen economy

FUELING A HYDROGEN ECONOMY

Critical role for IDC in development of local hydrogen economy

By Joanne Bate – COO – IDC

The growing interest in alternative and cleaner sources of energy in South Africa and across the world is driven by, amongst other things, sustainable development priorities, commitments to achieve the Paris Climate Agreement of 2015 and the goal to achieve net-zero emissions by 2050.

As a developing country with abundant natural resources and renewable energy sources, South Africa is well-positioned to capitalise on this global opportunity. Our natural resources – solar, wind, biomass for power generation – skills and technological capacities put us in a prime position to take the lead in the emerging hydrogen economy and the green hydrogen value chain for the benefit of all South Africans, establishing our country as a leading supplier to the world green market.

The strategic position we occupy has a solid foundation. As early as 2008 government led the way with policy direction. The Department of Science, Technology and Innovation launched Hydrogen South Africa to develop a hydrogen roadmap to integrate and create an inclusive hydrogen society. The focused efforts have led us to this point. The opportunities in green hydrogen are clear.

Hydrogen is exceptionally energy-dense per unit of weight and is no more difficult to store and transport than liquified natural gas (LNG). Through its direct combustion, its use in fuel cells and its use as an industrial feedstock, it can decarbonise a greater range of sectors than renewable electrical energy alone. Hydrogen can be produced in collaboration with renewable energy almost anywhere in the world. Importantly, in the context of global climate change, the use of hydrogen that is produced from renewable energy produces no carbon emissions.”

Earlier this year government entrusted the Industrial Development Corporation (IDC) to be the development and commercialisation champion of the hydrogen economy. Sustainable development and investing in large-scale projects with meaningful economic and social impact motivates IDC’s investment decisions. The Corporation is alive to the reality of climate change and adopted a guideline in 2020 to halve its exposure in coal investments by 2025. Moreover, the IDC is already an active promoter of the green economy. The Corporation’s exposure to this sector has grown to R14bn, further underscoring our commitment to supporting technologies that seek to promote and support the growth of clean energy sources.

The IDC will focus on identifying investment opportunities that will be progressed to enable pilot projects to be implemented in the short term. The Corporation will support sector linkages critical to developing and extracting value from the entire green hydrogen value chain. Interactions thus far with stakeholders have been positive and, some companies are well poised to seize future opportunities in the commercialisation of the green hydrogen economy. Providing a comparative advantage is the fact that South Africa holds more than 80% of the world’s platinum reserves and is home to the largest platinum mining companies in the world. Platinum is a key component of fuel cells.

Central to our success will be private and public sector collaboration that enable us to commercialise the opportunities that the hydrogen economy provides us. Appropriate national policies, strategies and regulations lay a solid foundation for progress. IDC believes that the government has already provided policy direction. What remains is for all stakeholders to play their respective roles and, amongst other things, bring their expertise, funding capabilities and a commitment to co-operate in value chain development – supporting industries and downstream adoption of hydrogen technologies. This will ensure that we convert the opportunity and drive our country’s just energy transition.

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A new way for UIF to pay Covid19 Ters Benefits – directly to workers

A new way for UIF to pay Covid19 Ters Benefits – directly to workers

The Minister of Employment and Labour, Thulas Nxesi, today signed the order allowing the Unemployment Insurance Fund (UIF) to implement a third extension of the Covid19 TERS benefit.

The UIF scheme will open on 19 July 2021, and payments will start on 26 July 2021.

However, there is one primary condition that has changed. Payments will be made directly into employees’ bank accounts rather than through their employers. Employers will still be expected to apply on their behalf.

The third phase will bring relief for the following categories of workers:

Workers who could not work from 16 March 2021 because Level 1, 2 and 3 restrictions prevent gatherings of a certain number of people – for example, in the entertainment industry;
Workers who were or are still affected by the Stage 4 restrictions that came into force on 28 June 2021; and
Workers who could not work during this period because they are over 60 or have comorbidities, and those who had to be isolated or quarantined.

The UIF has agreed to open the window for Phase 3 of Covid TERS to cover 16 March 2021 to 25 July 2021.

The qualifying sectors for Phase 3 of Covid TERS are listed in Annexure A of the Direction, including venues hosting auctions, professional sports, social events, and concerts and live performances. Annexure B includes all sectors affected by Level 4 lockdown restrictions, including restaurants, the liquor industry, hospitality and tourism, and all industries and business establishments that are part of these value chains.

Further operational details will be included in a letter sent directly to employers. The letter, along with the guidelines, will be available on both the TERS portal (www.uifecc.labour.gov.za) and the Employment and Labour website (www.labour.gov.za ).