Category: 2021 Newsletter September

Comment on CCSA Guidelines on collaboration

Comment on CCSA Guidelines on collaboration

The Competitions Commission of South Africa invited comments on collaboration between competitors on localisation initiatives. The South African Manufacturing Cluster submitted a comprehensive comment.

As published for comment by the Competitions Commission, the guidance document is, in our view, an excellent enabler for the development and growth efforts needed to revitalise the manufacturing sector.

Guidelines for collaboration – Comments

The Guideline document, as published for comment by the Competitions Commission, is

in our opinion, an excellent enabler for the development and growth efforts that will be

needed to support a revival in the manufacturing sector.

  1. By our understanding, the Competitions Act is about preventing parties from colluding to the exclusion and detriment of others. The guideline will help us collaborate with like-minded businesses and clusters to facilitate a more inclusive, growth-focused society.
  2. The Guideline provides an answer to the strategic question: “How does the industry go about identifying and implementing localisation initiatives in a manner that will not raise competition concerns?” It also makes it more feasible for the clustering of firms to build out the value chain horizontally (such as collective sourcing) instead of and in preference to traditional monopolistic, vertically integrated strongholds, controlling the traditional value chain.
  3. The list of defined definitions in the guideline refers to an independent facilitator as “not having direct or indirect commercial links or otherwise to a concerned firm”. This definition may be problematic for clusters to apply, should they want to facilitate localisation activities, which is often the main reason they exist.
  4. Assuming that a cluster charges a membership fee, they will (by definition) have a commercial link to the member firm concerned.
  5. Even if there is no fee involved, they would know the key players in the industry(s) they serve and would fail the “commercial or otherwise” test.

          iii.           Facilitation is expensive and would need to be funded. This joint funding of an independent facilitator can be equivalent to the same obligation as members would have to a cluster facilitator.

Regarding the framework for collaboration:

  1. Identification of opportunities for localisation (Para 6.2 – 6.6).
  2. On the understanding that there is a further discussion regarding “independent facilitator”, we agree with the balance of paragraphs on this topic in the guideline.

  1. The process for setting industry local procurement targets (Para. 6.7 – 6.11)
  2. On the understanding that there is a further discussion regarding “independent facilitator”, we agree with the balance of paragraphs on this topic in the guideline
  3. We also thank you for the clarification that the participation of firms in such discussions is not a contravention.
  4. The process for setting individual firm local procurement targets (Para 6.12 – 6.15).
  5. Para 6.14: To be edited, as the intended meaning is unclear: “…individual localisation targets, facilitated by the facilitator, ‘may’ not amount to a contravention…”.
  6. On the understanding that there is a further discussion regarding  “independent facilitator”, we agree with the balance of paragraphs on this topic in the guideline.
  7. Demand forecasting (Para 6.16 – 6.17)
  8. On the understanding that there is a further discussion regarding independent facilitator”, we agree with the balance of paragraphs on this topic in the guideline.

The guide is otherwise clear and will be an effective tool for industry and government to use in the future. In a constantly evolving environment, it is to be expected that interpretations and nuances will be tested, and updates may be required from time to time.

Members interested in participating in Manufacturing Cluster are welcome to contact Anna-Marth Ott at ceo@middelburginfo.com for more information.

Local Government Election and Business

Local Government Election and Business

The University of Potchefstroom hosted a Think Tank meeting to discuss: The state of local government and the upcoming elections in South Africa – challenges and opportunities for small businesses.

On 1 November 2021, South Africans will elect councillors for the 278 municipalities in South Africa. The election will take place against a backdrop of significant political, economic and social challenges. What role can small businesses, particularly chambers of commerce, play in bringing about the necessary changes at the local government level?

Low economic growth, corruption, poor audit reports, high unemployment, and political violence and vandalism are features of the current environment—small businesses in particular face major challenges due to poor service delivery. Elections can be seen as an opportunity to bring about change and hold politicians accountable.

Professor Raymond Parsons, the former CEO of the South African Chamber of Business, emphasised what business needs to do. The importance of the business community needs to be emphasised because of the 278 medium, large and small local authorities; only a few have local chambers or business forums. Over the years, the local organised network of organised businesses has continued to shrink, regardless of the umbrella they operated. One has to see that the local chamber influences the course and events; otherwise, the members will become dissatisfied. And, of course, without the participation of the business community, the structure can disintegrate.

So if the business community wants to maximise its influence in the current environment, on several levels, but we are talking primarily about the local level, then firstly, chambers must either revitalise themselves or existing chambers need to be proactive in addressing some of the issues that are structurally important to them in their area. Accountability is essential in a democracy. The chamber or a group of business people should question the politicians and ask, “What do you stand for?”. These are the problems we have, and how do you want to solve them.”

When the election is over, the chambers or businesses have not finished their work.   Where you do not have a chamber, that’s a good reason to start one or support an existing chamber. We want to create a new order at the local level and give local businesses a motive to gather around a structure that can be effective and engage in one way or another. The business community needs to take the opportunity now to organise more effectively across the country and make sure that the voice of business is heard.

Partnership with NCPC-SA and MCCI to promote competitiveness

Partnership with NCPC-SA and MCCI to promote competitiveness

Members of the Middelburg Chamber of Commerce and Industry (MCCI) can now fully benefit from the subsidised services of the National Cleaner Production Centre South Africa (NCPC-SA). At the first meeting on 16 September 2021, energy and water efficiency and the replacement of waste through industrial symbiosis were explained.

MCCI has signed a Memorandum of Understanding (MOU) with the NCPC-SA to jointly help members improve their efficiency and sustainability over the next two years. The NCPC-SA supports the industry through various projects and programmes that promote resource efficiency and clean production methods in industry and selected commercial sectors.

One of the most important offerings in the province is the Mpumalanga Industrial Symbiosis Programme (MISP), which the NCPC-SA operates in collaboration with the Mpumalanga Department of Economic Development and Tourism. MISP is a provincial initiative to create economic opportunities while improving the management of industrial waste.

The programme uses the industrial symbiosis approach, where unused resources from one company are recovered and reused. The approach supports developing a circular economy in Mpumalanga, avoids landfilling waste and creates business opportunities for local entrepreneurs or waste solution providers.

MCCI hosted the NCPC-SA to introduce the NCPC-SA and its services to MCCI members. This national government programme is hosted by the Council for Scientific and Industrial Research (CSIR) and funded mainly by the Department of Trade, Industry and Competition (DTIC).

MCCI plans to hold one workshop per NCPC, as there are many areas where businesses can benefit and find synergies with the services offered. Any member interested in more information can contact Anna-Marth Ott: ceo@middelburginfo.com.

Thank you, Women in Power

Thank you, Women in Power.

On Friday, 17 September 2021, ladies of the business community gathered at Hermansdal Landgoed to celebrate Women’s Day in the spring.

The Middelburg Chamber of Commerce and Industry (MCCI) hosted its annual Women’s Day celebration with 100 beautiful women from the Mpumalanga Highveld.  The theme was Women in Power. The ladies were given a platform to express themselves and interact with other women. Mr Themba Phathakge opened the ceremony with a beautiful poem about women, and William Blackrose captivated the women with his beautiful voice.

Special guests included the Executive Mayor of Emalahleni Ms L.N. Malatjie, Acting Executive Mayor of Nkangala District Ms Mthimunye, Municipal Manager of Nkangala District Ms S.S.Skosana, Ms Que Naidoo, President and Mrs Anna-Marth Ott, CEO of MCCI The day ended with the women testing their golf swings at the new Hermansdal golf driving range. Monica Joao won the competition for the longest drive.

Thank you to the following sponsors: Columbus, Thosbegbie, Nashua, Twizza, Mbungiswa Logistics, Hermansdal, Old Mutual, Chris de Hoek Guest House, The Daily Coffee café Middelburg, Alveston Manor Spa, Abafazi Nebhodo, Midmed Hospital, Honey Accessories with your continued support of the event was a great success.

NB: Covid 19 regulations were followed at all times.