Category: January 2024

Property Rates – Hot Potato Or All Is Well?

Property Rates – Hot Potato Or All Is Well?

An information session took place at the Middelburg Chamber Offices on 22 January 2024.    Mr Gerrit van der Merwe, Snr Vice President of the Middelburg Chamber of Commerce and Industry (MCCI) chaired the meeting with property management sector members.  Mr. Phumlane Mkhize, Director of Property Valuation, Steve Tshwete Local Municipality (STLM) updated the members.

Mkhize explained the income approach to property valuation, factoring in net income and minimum returns.  He said there are many undervalued properties in the municipality, like logistics and warehouses. While STLM recognizes the difficulties of property management, including expense ratios and energy efficiency, however, Property Tax remains a significant income source for the organization.

According to Mkhize, STLM’s goal is to ensure fairness in all sectors, such as tourism industry by offering transparent rates and income to property owners. They conducted an analysis on property values in the CBD area. They considered factors like traffic, pedestrian activity, and rental income to ascertain the value of the properties. He also highlighted how important it is for investors to be engaged and for the town to embrace digitalization for its future growth.

The members urged the municipality to be reasonable in valuing property, and to cap rates and basic assumptions. The safety and the maintenance of infrastructure in areas such as the CBD makes investment and development risky. Assumptions about property values will cause numerous disputes.

Members expressed concern that property values in a specific area may not increase but decrease in some areas. Some stresses caused by STLM is the way business cannot access the Spatial Development information, severe project delays, and government inaction. The property sector is a complex process that requires careful consideration because of the involvement of various stakeholders.

Factors like recession, vacancies, and the distinction between commercial and residential rentals influence the value of a property. The difficulty in filling office rental vacancies due to COVID should be factored into STLM’s calculations.

In light of the strains faced by the construction and property investment sectors, MCCI is urging STLM to prioritize creating an investor-friendly environment in our area.  The Chamber sees a future for all sectors, but the delay in implementing the SCADA system affects the sustainability of the property and manufacturing sectors.

Members can confirm the value of their properties at Property Valuations – Steve Tshwete (stlm.gov.za) and how to dispute the value of their properties.

Protect your Export Business to Europe

Protect your Export Business to Europe

Multiple countries has contacted the Middelburg Chamber of Commerce seeking verification of the authenticity of the South African business they are importing from, both in 2023 and January of this year.

The Financial Action Task Force added South Africa to its “grey list” for increased monitoring on 24 February 2023. In August 2023, the Department of Social Development revealed that less than 7,000 out of approximately 18,000 registered NPOs in Mpumalanga complied with the NPO regulations. And that more than half of the 256,212 NPOs registered in South Africa since 2002 were non-compliant.  The Beeld of 29 January 2024 posted an article of a Moody’s report stated that  61,000  companies have the same address.  No wonder MCCI is receiving these enquiries.

Global companies are aware of and utilize the extensive Chamber of Commerce network in the global economy.  To ensure the credibility of a company they are buying from, importers can rely on the speed and safety of verifying the exporter’s chamber membership.

MCCI encourages businesses exporting to Europe to reach out for additional details.  Feel free to reach out to Christo Stemmet at admin@middelburgchamber.com.

121st AGM and Executive Election 2024

121st AGM and Executive Election 2024

Save the date! MCCI’s 121st Annual General Meeting (AGM) will be held on 14 March 2023 at 17:00, at Rustique Boutique Hotel, Old Belfast Road (R104) Rondebosch, Riverside Estate, Middelburg.

Your presence is crucial in ensuring competent Executive Members are elected, representing the Middelburg business community.  MCCI Members are invited to nominate candidates for the 2024/25 period at the 121st AGM. Nomination forms are available at the office.

Members are urged to confirm their attendance by 13 March 2023 to ensure a successful AGM. If you are unable to come to the AGM, please fill out a proxy form and send it back to the office by March 12th, 2024.

We have emailed the notice, nomination, proxy forms and minutes to the membership. Please contact Zelda on 013 243 2253 or member.support@middelburgchamber.com for more information

CSOS opened the Mpumalanga Office

CSOS opened the Mpumalanga Office

Community Schemes Ombud Services (CSOS) opened their Mbombela Office on Thursday, 10 January 2024. The office will operate at Riverside Park, Mbombela.

The CSOS serves as the Ombud for all community schemes in South Africa. Its services include resolving disputes, ensuring the quality of governance documents for community schemes, and offering training and consumer education.

A Community Scheme refers to any arrangement where land and buildings are shared and responsibilities are shared among multiple parties. This includes sectional titles’ development schemes, share block companies, homeowner’s associations, retirement housing schemes, and housing cooperatives. Contact CSOS at info@csos.org.za.

MCCI welcomed the CSOS office in Mpumalanga, and trust that another satellite office will be established in the Highveld Region of Mpumalanga.

Carbon Capture Utilisation and Storage Pilot

Carbon Capture Utilisation and Storage Pilot

The Council for Geoscience (CGS) held a workshop on 22 January 2024 to introduce their pilot project to capture and utilise CO2. The project will be in Leandra, Mpumalanga.

The allocated area contains minerals that are highly reactive with anthropogenic CO2. These minerals largely include plagioclase and ortho pyroxenes. This encourages mineral trapping (in situ carbonation). The geochemical conversion of CO2 reduces the risk of leakage over time.

CGS has signed MoUs with Sasol and Exxaro to collaborate on the project. Both organizations have knowledge and skills in-house that can be used in CCUS-related processes. Additionally, they have the potential to supply the CO2 needed for test injection.

CCUS conducted a 3D seismic survey to gain knowledge and understanding of the subsurface geology and related structures.  They drilled an 1800 m stratigraphic core borehole that targeted the basalt horizons earmarked for injection. They plan to include a suite of downhole geological techniques.  Some of the downhole activities are Geological and Geotech logging, hydrogeology, downhole geophysics and vertical seismic profiling.

The data collected will provide clarity on the strength of favourable geological and environmental conditions, influencing the decision on geology’s sustainability for CO2.  injection.  Groundwater information is also part of the data collected.

Detailed engineering designs for the pilot plant are being worked on by Carbfix. CCUS is expecting to inject between 10,000 or 50,000 tons of CO2 into the basalts. The site is also considering other storage options like saline aquifers and coal seams. The completion of the design is scheduled for February 2024.

The CCUS project will bring innovation and enhance the skill level of the business community.  Any member needing more information should contact Anna-Marth Ott at ceo@middelburgchamber.com.