Tag: business

Congratulations to Alveston Manor

Congratulations to Alveston Manor
The Middelburg Chamber of Commerce and Industry would like to congratulate the owners of Alveston Manor on their recent investment in the town. Alveston Manor opened the new spa and coffee shop in its boutique hotel on Friday, 3 December 2021.

The pandemic COVID and the various decisions made by the government have had a very negative impact on our tourism industry. The way businesses conduct their meetings, site visits, and contractual obligations have changed, and many use digital tools to replace physical inspections. All these decisions have also impacted the accommodation industry. We all need to find a way for tourism businesses to benefit from these changes.

Middelburg needs investment, not only to boost our economy but also to show that we believe in the future of our town. We thank you for your investments and wish all tourism businesses not only to survive the new measures of COVID but also to flourish in 2022.

Uniform Rules for Digital Trade Transactions (“URDTT”)

Uniform Rules for Digital Trade Transactions (“URDTT”)

The International Chamber of Commerce (“ICC”) has published the Uniform Rules for Digital Trade Transactions (“URDTT”), which constitute the international laws of trade financing practice, and came into force on 1 October 2021. You can read the rules here.

Background

Work on the URDTT began in December 2018 following the realization that there was a lack of rules for digital transactions. The first draft was prepared by the ICC National Committees (“Committees”) at the end of 2019. Since then, the Committees have drafted six different versions of the rules taking into consideration more than 1,500 comments. Finally, the definitive version of the URDTT was published on 1 October 2021.

What is the scope of the new rules?

The URDTT is a comprehensive set of rules designed to cover all parties of digital commerce transactions. Its core mandate is to pave the way for commercial transactions in compliance with the UNCITRAL Model Law. Pursuant to these rules, electronic records will form the basis of commercial transactions rather than any documents or written contracts. Thus, impartiality and uniformity will be ensured in terms of commercial transactions.

The URDTT are intended (i) for a fully digital environment, (ii) to be neutral with regard to technology and messaging standards and, (iii) to extend into the corporate space, including commercial transactions and the growing community of non-bank providers of financial services.[1]

Within the framework of the URDTT, it is possible for importers and exporters to create electronic records for the purchase and sale of goods and services. It will, therefore, provide documents that will prove a buyer’s obligation to pay and a seller’s obligation to sell.

Moreover, the new set of rules also specify how electronic records regarding parties’ obligations are submitted and under which terms and conditions they will be issued.

Conclusion

In today’s world, where digital transactions are becoming more widespread, there is no doubt that the importance of digitalization of the trade industry is one of the most discussed issues in the international dimension. With the new rules, an important step towards adapting to the new world has been taken, providing a standardization of digital transactions and namely, a legal certainty. It is clear that the URDTT rules will be revised according to developing technology, business life and the needs of the markets and thus, new versions could be developed in this regard.

 EXXARO AND SERITI RESOURCES JOIN FORCES WITH ESKOM IN REALISING A JUST ENERGY TRANSITION TO A LOW CARBON FUTURE IN SOUTH AFRICA

 EXXARO AND SERITI RESOURCES JOIN FORCES WITH ESKOM IN REALISING A JUST ENERGY TRANSITION TO A LOW CARBON FUTURE IN SOUTH AFRICA

Johannesburg, 25 October 2021: Eskom, Exxaro and Seriti Resources have announced the signing of a landmark Memorandum of Understanding (MOU) that spells out their intention to pursue, co-operatively and individually, the development of renewable energy projects to lower carbon footprint at their operations. In doing so, the parties aim to create employment and re-skilling opportunities for communities living and working at and around their operations and to take a step towards a just transition to a low carbon future in South Africa.

Exxaro and Seriti are the largest coal suppliers to Eskom, contributing around 80% of Eskom’s coal supply per year. By implementing renewable energy solutions at their Eskom-tied operations and at related Eskom sites, Seriti and Exxaro aim to achieve both carbon reduction and cost savings in the generation and use of electricity at these mines. This is symbiotic with Eskom’s mandate to provide electricity in an efficient and sustainable manner, which includes decarbonising its supply chain.

The first phase of the envisaged project pipeline will see the construction of a number of solar photovoltaic facilities both on-mine and at Eskom sites. These may be behind-the-meter solutions (that is, off-grid) or wheeled solutions, or combinations of the two. The companies have committed to begin the projects as soon as possible, subject to regulatory approvals. Further projects envisaged may include energy storage and possibly wind energy facilities.

Under the MOU, Seriti envisages achieving a reduction in CO2 emissions of up to 350,000 tonnes per annum, more than half of its current emissions of 700,000 tonnes of CO2 equivalent through the consumption of coal-fired electricity generation. In respect of Exxaro – the company envisages achieving a reduction in CO2 emissions of up to 130,000 tonnes per annum at its Matla coal mine, which represents a saving of 70% of the greenhouse gasses with Matla at full production.

André de Ruyter, CEO of Eskom said: “Eskom continues to explore means to lower the cost of coal supplied to its power stations, and this investment allows it to advantage of the low

cost of photovoltaic power This is one of the many initiatives Eskom has embarked on to achieve a NetZero status by 2050.”

Mxolisi Mgojo, CEO of Exxaro said: “This is a significant landmark development in South Africa’s energy transition to a low carbon economy for three of South Africa’s largest players in the mining and energy sectors. The investment in decarbonising our mining operations is a systematic and responsible approach to the energy transition without introducing risk to the country’s electricity generation. The collaboration amongst Exxaro, Seriti and Eskom is exemplary of the possibilities achievable through co-operative and constructive relations between business and government in securing livelihoods and a future for South Africa.”

Mike Teke, CEO of Seriti said: “We recognise that climate change and the need to decarbonise our economies is a significant challenge and imperative for South Africa. But, at the same time, we are very conscious that this needs to be done in such a way that does not destroy our industrial base, or the lives of South Africans that rely on our companies for jobs, enterprise and support: this is the very basis of a just transition. As a company, we are fully committed to decarbonisation and a just transition, and in working with our partners – in business, government, labour and communities – in achieving this.”

For further information:

Eskom:

Sikonathi Mantshantsha +27 83 276 0606

E-mail: mediadesk@eskom.co.za

Exxaro:

Mzila Mthenjane +27 83 417 6375

Tsabeng Ntithe +27 76 371 6810

Seriti Resources:

Alan Fine + 27 83 250 0757

Charmane Russell +27 82 372 5816

A Map of Middelburg to plan your deliveries

A Map of Middelburg to plan your deliveries

The staff of the Middelburg Chamber of Commerce and Industry have gone to the trouble of checking the streets of Middelburg and Mhluzi and producing a printable map of the area. You can order a copy of the map to fit in any room of your business.

We have updated the street names of recently developed areas and linked the streets to a grid. The map can be supplied in the size you require, in black and white, with your logo or in full colour print. Place your order at the Information Office to receive your personalised wall map of our town.

For more information about the map, contact the Middelburg Information Centre on 013 243 2253 or email admin@middelburginfo.com.

How will businesses survive the current turmoil in our municipality?

 How will businesses survive the current turmoil in our municipality?

Since the mid-1980s, businesses and the community have had the opportunity to talk to each other and put the hard truth on the table so that we can survive as a community, whatever the future holds.

First, it was the COVID19 lockdown where it became the norm in government departments and local government to “work from home” or only work two to three days a week. Then there was the unrest in Kwa-Zulu Natal and Gauteng, Steve Tshwete Municipality’s (STLM) civil unrest in August, which escalated into the current unsustainable wage increase demand for STLM workers, which is a major concern for companies.

Business is used to working with the municipality. The STLM provides us with their services and we pay for what we use. Will businesses be quiet and accept the extra financial burden that will be placed on us? Will the infrastructure we depend on to be maintained at an acceptable level? How will we manage the additional cost of municipal services, cut jobs? Maintain the infrastructure at our expense? Police our properties and communities to ensure the safety of our people? Or are you as a business prepared to absorb these additional costs?

Is your company or employer a member of the Middelburg Chamber of Commerce and Industry? Do you want to be part of the solution that paves the way for the future, or do you accept the future that is being planned by the municipality. As a non-profit organisation, MCCI is a non-political organisation that only supports the interests of business. Contact the office with your vision and point of view on how you envision our future.

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.

Industrialisation in Middelburg?

Industrialisation in Middelburg?

Much has been said about the government’s “Just Transition” strategy.  It has been talked about and studied by endless consultants for years. But what does it mean for Middelburg?

Eskom CEO Andre de Ruyter makes a case for using South Africa’s transition to green energy to break the country’s”vicious cycle of deindustrialisation and unemployment”.  It can kickstart a “positive cycle of local demand for local goods to create investment and jobs.” At the
2021 Dr Hendrik Johannes van der Bijl Memorial Lecture, De Ruyter rejected the notion that South Africa abandon manufacturing in favour of commodity exports and services.

JUST ENERGY TRANSITION
Eskom will be implementing a Just Energy Transition strategy (JET) to accelerate the repurposing and repowering of decommissioned power plants, starting with Komati in 2022, which included pursuing a share of the renewable energy allocation included in the Integrated Resource Plan for 2019. Eskom plans to repower the Komati plant by installing solar photovoltaic (PV) generators and a 244 MWh battery energy storage system. Komati is in a great position to become a flagship brand.

The Middelburg Chamber of Commerce and Industry has invited members to a meeting to discuss the JET opportunities for our local companies. If you have not yet received the link to the meeting, contact Anna-Marth Ott at ceo@middelburginfo.com for your link.