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We want our town back

We want our town back
It is the responsibility of every municipality to create an enabling environment for business. How many jobs and businesses will be displaced if municipal services are not accessible to the public and businesses? Is a job in the municipality more important than a job in the industrial area?

President Cyril Ramaphosa said in his SONA speech that the role of businesses is essential to the country. Still, if we cannot register the vehicles sold, several businesses are affected. If we cannot complete the sale of a house, many businesses are affected. If there is a water shortage … and the story goes on. The business community depends on our municipal services to run optimally and without prejudice and malice. The management of Steve Tshwete Municipality must act quickly and solve the problems in their various departments.

In November 2021, MCCI offered its support in mediation to find a positive outcome to the strike that did not harm the community at large. As a collective, we have a lot of experience dealing with strikes and know how best to succeed. An example of this is the recent NUMSA strike in October 2021; thousands of workers were unhappy, many companies were affected, but there was a solution in the end. We expect nothing less from our local government. If we do not find a final solution soon, the unhappy working environment will not be solved. Those that have a role to play, the politicians, the management, SALGA and CoCGTA, must end the strike immediately.

There is a worrying wave of crime directed against our businesses and business premises. Vandalism and sabotage seem acceptable behaviour; where is SAPS, where is the discipline required to stop this? What do those involved think will happen if we continue down this disastrous path?

We want our town back. We want the town that won Masekane; we want the cleanest town in Mpumalanga, the one with the lowest crime rate and steady economic growth. We want the town where we talked to each other, regardless of political affiliation, history, or other identities that seemed essential to certain people. We want our town back.

Welding is the second scarcest skill in SA

Welding is the second scarcest skill in SA

The South African Institute of Welding (SAIW) and the Department of Economic Development and Tourism (DEDT) of the Mpumalanga provincial government met with companies from the Highveld region. The event aimed to discuss ways to address the shortage of welding skills.

The government has identified thirteen scarce trade skills for its approved infrastructure programmes, and welding is currently ranked as the second scarcest skill in South Africa. According to the American Welding Society (AWS), there will be a global shortage of 450 000 welders by 2023. Strategic programmes such as the War on Leaks and the new oceans economy programme, Phakisa, have also highlighted the need for skilled welders.

South Africa needs suitably qualified welders with the required skills to enable local businesses to benefit from this demand. DEDT and SAIW are planning to open an exciting new welding school, supported by a world-class welder programme, to be based at the Mpumalanga Stainless Initiative (MSI) in Middelburg.

The aim is to provide three years of training for highly skilled workers trained to industry standards. The artisans will be able to produce higher quality welds with lower rework costs and better productivity. By the time they qualify as welders, they will have internalised the company’s work processes and standards. Lower risk and cost in recruitment and better retention.

Many companies need welders, and large companies offer apprenticeships, but we need to find a way to train our local people in marketable skills that will drive our economy. MCCI members are committed to reaching out directly to SAIW to get the ball rolling. Businesses interested in participating in the SAIW welding school at MSI can contact Etienne Nel (etienne.nell@saiw.co.za) or Silindile N Ntshangase (SNtshangase@mpg.gov.za) for more information

Many business opportunities in Burundi

Many business opportunities in Burundi
A delegation from Burundi led by Ambassador KN Jolobe, HE Ms, met with Que Naidoo, President of MCCI and various members of the Middelburg Chamber Executive.

Burundi has 6% of the world’s rare earth deposits and exports Arabica coffee. They are also looking at possible investments or partnerships with local businesses in tourism, internet connectivity, mining opportunities and agriculture. Burundi has 17 provinces and a different mineral has been found in each province.

The aim of the meeting was to establish contacts with local businesses that can network with Burundian businesses. Today, they have cut the red tape by introducing the ambassador directly to the Chamber of Commerce.

The next step is to organise a networking event between The East African Investment, Trade, Promotion Agency, the Burundi delegation and members to plan and explore the proposed trade delegation to Burundi.

Members are invited to send me their details to secure their invitation to the next Burundi investment event. Contact Anna-Marth Ott at ceo@middelburginfo.com.

Be Warned: Change in Property Valuation

Be Warned: Change in Property Valuation
Members of the Middelburg Chamber of Commerce and Industry met with Mr Phumlane Mkhize, Director of Property Valuation, of the Steve Tshwete Municipal on Monday, 17 January 2022. The meeting was chaired by Mr Gerrit van der Merwe, Executive Member: Real Estate.

Mkhize told members that the STLM property valuation system for commercial properties will be changed and introduced in July 2023. The property valuations will be completed by June 2022 to facilitate future implementation. The purpose of the meeting was to inform property owners why the valuation system is changing and how the calculations will be done.

The law on the valuation of property values was amended in 2004. The Act has allowed access to the financial data of your business to determine its value:

(1) A municipal assessor or deputy municipal assessor may.
(a) require the owner, tenant or occupier of a property which the valuer must value in terms of this Act, or the agent of the owner, to give the valuer access to any document or information in possession of the owner, tenant, occupier or agent which the valuer reasonably requires for the purpose of valuing the propertyWhat does the above mean? The STLM valuer may request your profit and loss account and then review your finances considering rental income and occupancy percentage. The complete profit and loss account or balance sheet will not be considered, only maintenance and expenses directly related to the upkeep of the property. When valuing the property, capital repayments, interest, and other expenses that are not directly related to the upkeep of the property are not considered.It is not uncommon for property valuations in STLM to be well below market values. Depending on the classification of the property, a fraction of the property’s market value is used in the classification of the property. For example, a property currently valued at R13 000 000 and subject to a municipal tax rate of 0.0333 will be taxed at R432 900 per annum or R36 075 per month. If the value is increased to R20 000 000, the monthly tax payable increases to R55 500, which has a drastic effect on input costs. Values are calculated using a market capitalisation rate based on income for commercial rental properties. For owner-occupied commercial buildings, the valuation is based on the average market value of comparable buildings in the same area. Residential properties are valued on the same basis, whereby the property value correlates with the market value, which depends strongly on the designated area.

Although the blanket approach aligns with aligns and common practice, it has provoked strong reactions. For example, a landlord rents out a building for R345 per square metre, while his neighbour’s comparable building can only be rented out for R55 per square metre. This will undoubtedly affect the average rent per square metre used for valuations. If you feel that your property has been assessed inappropriately, you can appeal the value, but not the municipal tax rate, as STLM Council and COGTA make this decision.

Every business has its environment that determines the sustainability of each individual business, tenant and property owner.

The pandemic has highlighted how vulnerable businesses are to environmental changes and input costs. Rent, a substantial cost for most businesses, has come under severe pressure since the pandemic.

Members requested that MCCI appoint a sub-committee to find a solution to ensure that the process is beneficial to both the municipality and businesses. Members interested in participating in the subcommittee, don’t hesitate to contact Anna-Marth Ott at ceo@middelburginfo.com.

STRIKES CAN BE RENDERED UNNECESSARY

STRIKES CAN BE RENDERED UNNECESSARY
Strikes in South Africa are as ‘natural’ as warm weather, says Ivan Israelstam, Labour Law Management Consulting CEO. On the other hand, strikes have become rarer in recent years, as unions shy away from weakening the employer and the associated dismissals.

For decades we have been trapped in a fatal vicious circle. In other words, workers do not earn enough to feed their families, and they go on strike to demand a wage increase and better working conditions. If the strike lasts long enough, the company gives in and a wage increase well above what was budgeted. This reduces profits and, in rare cases, leads to financial losses. The company then compensates by making job cuts to reduce wage expenses. As a result of the job losses, the purchasing power of the public falls, and companies suffer losses. Companies then cut costs by reducing wage increases or spending on working conditions. Workers retaliate with strikes, and the vicious circle continues.

This increasingly deadly cycle is deadlier than Covid, more toxic than state capture and more devastating than power cuts. We have now been living under the new political order for 27 years, and there is no sign of anyone in positions of power making any real effort to stop the vicious cycle, the toxic industrial relations and the cancerous damage to our economy.

For their own sake and the development of the South African people, the so-called government leaders in business and the unions must take the blinkers of their eyes and stop this deadly spiral. If these so-called leaders refuse to take up their responsibilities, civil society must intervene.

The new labour-economic system must eliminate the opposing ideologies of socialism and capitalism. The doctrines of socialism that seek the nationalisation of enterprises and strangle the economy must be abandoned in favour of the unmistakably positive socialist principle of fairness for all. Similarly, the exploitative principles of capitalism must be replaced with truly inclusive free-market ideals.

This approach mixes the benefits of the free market (the ability to make money) with the benefits of socialism (i.e. fairness for all). By combining the positive aspects of socialism and capitalism, the struggle between the two ideologies is settled, and a new, everyday philosophy, shareism, emerges. Entrepreneurs and workers will no longer compete for money because they will work together to create and share it. For more debates on labour rights issues, see www.labourlawadvice.co.za.

There is no Just in Just Transition.

There is no Just in Just Transition.
On Tuesday, 30 November 2021, TIPS held a public debate on the key priorities and challenges for a Just Transition in the Emalahleni and Steve Tshwete areas. A statement was made and supported by many that there is no “Just” in the government’s Just Transition programme (JET) for citizens affected.

The JET Programme has been discussed for many years, first at the national level, then at the district level and more recently at the local level. Many consultants have been active in the area, collecting data, and some have even implemented programmes. Although it is still early, it seems that communities, from municipal officials to labour union representatives, are unhappy about what JET might mean for their future.

What projects have been approved, who is funding these projects, and the key outcomes that each project aims to achieve. The community has participated in many projects, skills training, entrepreneurship training and so on, but if there is no prospect of earning, the skills become obsolete. We do not want to be seen as charity recipients who have to be given a dummy to keep us quiet.

MCCI urges all stakeholders to create sustainable projects that provide secure jobs for participants. What market do they want to create with the new technology, or is the project only viable with continued financial support? There should be an open database of available information to prevent collusion, and the plans need to be available on the ground. How many of the recently launched projects have been successful?

The consultants and academics and the companies outside the Highveld region of Mpumalanga see us as needing help, even though they make their millions from local business opportunities. MCCI believes that the skills and talent are there, and we have a vested interest in making JET sustainable and successful. May the ghosts in the ghost town that “they” predict remain in their imagination. MCCI is continually committed to sustainable programmes to support and grow our economy. If you are interested in more information, please contact Mmabatho at info@middelburginfo.com

The Highveld Mine Map – Insight and Analysis

The Highveld Mine Map – Insight and Analysis

The Middelburg/Emalahleni area is well known for being an industrious mining complex. Not only is the bulk of the country’s coal resource deposited in the western Mpumalanga, but the area is also known for hosting many of Eskom’s Power Stations. This network has resulted in an abundance of local business opportunities positioned to support the mines and power stations with the services and products they require.

The question naturally arises: how can one gain access to this network? Forward-thinking organisations of the region have always been committed to facilitating and fostering productive, synergistic and profitable business relationships amongst themselves. This spirit of cooperative goodwill has resulted in a rich repository of information geared to stimulate business development and grow the local business landscape through any means possible.

The Mine Map, a product of such collaborations, is aimed at developing networks in the local mining industry. The Decisionsmiths recently contributed critical insights to the map through a revolutionary business intelligence (BI) transformation. No longer will the critical contact information only be available as a printed copy, but we now offer an online version, fully searchable and interactive.

Mining operations can be filtered by commodity, mode of operation, ownership structure or geographic location.

Additional insights become available through superimposing the mine locations onto reference layers, showing mine locations on geological maps, satellite imaging or analysing the state of the roads servicing the operation.

Data analytics has never been more important to your business. The Decisionsmiths specialises in coupling your in-house dataset with the wealth of data available in the world today and adding value to your strategic business decision-making in a cost-effective way.

Thank you to the sponsors of the Highveld Mine Map (alphabetical order):

ACDC Express Middelburg
Blackwattle Colliery
Dobe Brand Engineers
Doulos Mining
Eco-D Mobile Carwash and cleaning services
Highveld Industrial Park
Hilti
Isambane Mining
Liebherr-Africa
MEMSA – mining equipment manufacturers of South Africa
Mlaki Business Enterprise Transport
Nathi Sonke Holdings
Phillips Global
Powerstar
SATS Safety and Training solutions
Stallion Towing Services
Steinmuller Africa
Syndicate Signs
The Decisionsmits
Umsizi Mining
Vista Wa Seroka

2022 Printed mine maps for sale at the Middelburg Info Centre 013 243 2253.

If you want access on the digital platform or marketing exposure, please contact Valerie 082 417 8088