A NATIONAL AFRICAN FEDERATED CHAMBER OF COMMERCE AND INDUSTRY STAKEHOLDER PUBLICATION

Open Letter by Nafcoc President

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National Small Business Trade Centre in Pretoria

Issue3, Volume 1 - 2013

A LEADING VOICE OF BUSINESS IN SOUTH AFRICA

Nafcoc Launches R1Bn Fund with Government and Fabcos.

SEE STORY ON PAGE 2

SEE FULL VIEW ON PAGE 10

In 2009 NAFCOC gave the leadership of Lawrence Mavundla a mandate to come up with a turnaround strategy and take the organisation to greater heights. NAFCOC renewed this mandate again during the 2012 NAFCOC AGM conference where the executive was re-elected.

Nafcoc President Lawrence Mavundla

Nafcoc Introduces a new membership database system

Our view on the proposed Business Licensing Bill

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Editorial CommentThis publication of Khwebo comes in the face of trying times for Nafcoc which has of late been in the courts with a structure that purports to hold the mandate of the broader Nafcoc membership. It also brings with it opportunity on its wings as it unveils the launch of Medicard Investments (Pty) Ltd, a company majority owned by Nafcoc’s invest-ment company, Silver Vanity Group Holdings (Private) Lim-ited.

The February 2013 Judge Monama’s Judgement which Rev Holgwane and his Nafhold led group has overwhelm-ingly published in the media does not validate the meeting held on 6 December 2012 and the resolutions passed there-at. The 06 December 2012 meeting supposedly elected Rev Hlongwane together with other individuals as leaders of Nafcoc. This is regreattably a misinformed position as this meeting was executed outside the genuinely elected Nafcoc council which had retained the current Nafcoc leadership on 23 November 2012 at the Nafcoc Conference held in East London which was witnessed by different stakeholders in-cluding government, private sector, organised business and foreign dignitaries who came as far as Indonesia to attend the Conference. It is our well considered conviction that Lawrence Mavundla remains the President of NAFCOC and Sonyosi Stephens Skhosana, Teme Emmanuel Letsoela, Sekwamo Gilbert Mosena, Churchill Mrasi, Zandile Nka-binde, Margaret Bango, Harold Phumzile Ndendela, Daniel Kotze and Chuma Shweni remain the other members of the executive committee of NAFCOC.

We mean business at Nafcoc house and we will continue to forge ahead with our mandate regardless of claims by oth-er groupings to the age old mandate of Nafcoc and its rich history.

Though the road ahead is an uphill, we have girded ourselves to the task at hand. The matter of Nafcoc has far reaching implications to enterprise development in this country and this country cannot have the luxury of ignoring the matter anymore. The time is coming, and that time is now when the investigative agencies of the land have to at-tend to the matter with urgency. As Nafcoc, we have repeat-edly said that we are open to investigation by any agency of this land. We have nothing to hide.

We urge the Nafcoc leaders and all those who love Naf-coc, to continue working tirelessly to get the answers as to what really transpired at Nafcoc and as to why Nafhold , the Nafcoc investment arm is no longer in tandem with Nafcoc. To all our members, scattered across the breath and width of this great nation, we pledge that we will not rest until the truth is out.

Elsewhere in this publication, we meet industrious sons and daughters of Nafcoc at work in different sectors and provinces that make its membership. It may be said that we should leave this great work and focus on the court cases before this country’s judiciary officers. But doing so would be derailing our mandate. It would be an act of treason. We believe we have a mandate that we can ill-afford to leave unattended and hence it is all-business regardless. While we will vigorously fight , through legal channels , to be heard and to put across our case before the courts, we will not do so at the expense of the thousands of South Africans who have given us a precious mandate to lead them towards their rendezvous with their economic destiny. We believe that we will be here, for years to come, leading in the noble struggle for the economic empowerment of our members and South Africa at large. That is the reason why we put the business of Nafcoc at the forefront of everything else despite the rag-ing storm of court cases brought about by individuals who purport to hold the mantle of leadership of this august feder-ation called Nafcoc. To our leaders, from us at the Khwebo we say keep up with the good work. We are behind you.

Nafcoc has joined hands with government and the Foundation for African Business and Consumer

Services (Fabcos) to establish a R1Bn enterprise development fund called the sNF Enterprise Development Trust Fund aimed at funding small business. The sNF Fund was launched by Minister of Economic Develop-ment, Mr Ebrahim Patel at the Nafcoc 48th Annual Conference on 23 No-vember 2013. Government is repre-sented in the fund through the Small

It is a great pleasure to address this Conference of NAFCOC held in the Eastern Cape, one of the industrial heartlands of South Africa. I wish to give a special welcome to my col-league, His Excellency Syrif Hassan, Minister of Cooperatives and Small and Medium Enterprises from In-donesia and his Deputy Minister Dr Djamhari. Small businesses are vital to job creation. Many of you are run-ning your own taxi companies, spaza shops, hair salons or small-scale busi-nesses.

You bring your energy, your ideas and your passion to provide services or goods to consumers. Your Confer-ence is an opportunity to network, to learn from best practice, to celebrate your successes. For this reason, we want to deepen the relationship be-tween Nafcoc and government. We have a delegation of government representatives at your Conference, including E Cape Economic Develop-ment MEC Jonas.

Two years ago, government adopt-ed an economic strategy in the form of the New Growth Path. We set one central goal - to create five million new jobs by 2020. Over the past two years, we have made a good start - the economy has created 670 000 new jobs. But more need to be done to en-sure we meet the needs of our people. Our goal is to industrialise the econo-my, through the growth of manufac-turing, mining and agricultural activ-ities. Countries that grow sustainably and provide economic opportunities to citizens, have strong and dynamic manufacturing sectors. Many of you

will know from your experience, that to build competitive sectors in a glo-balised world, requires hard work. As part of our efforts to achieve our jobs targets, we are promoting the entrepreneurial energy of our people, through small business development.We listened carefully to the concerns small businesses expressed and the frustrations many micro enterprises faced.

The leadership of NAFCOC and FABCOS shared with us the experi-ence of their members. We met small enterprises who were successful as well as those which struggled to sur-vive. You told us that there are too many small business agencies and that too much money was spent on the bureaucracy. You complained that government only made money avail-able through middle-men, who added large mark-ups, which meant that the facilities were very costly.

We reflected on these concerns.Seven months ago, we launched the Small Enterprise Finance Agency, or SEFA, to begin to address these con-cerns. The Chairperson, Sizeka Rens-burg is with you today. SEFA was set up to provide better funding support to small businesses. It combined the work of three agencies into a one-stop shop. Khula Finance, SAMAF and the IDC small business book were merged into SEFA. We added about R1 billion to the available capital through a loan from the IDC to SEFA. We negotiated a loan from the China Development Bank at lower interest rates so that we have flexible and cheaper funding to promote small businesses. I appointed

a new Board to ensure proper govern-ance of the institution and nominated your President, Mr Mavundla, to serve on the Board.

SEFA has hit the ground running. In the past sixmonths, SEFA has fi-nanced 99 SMEs through direct lending already, to the value of R25 million. SEFA is now developing a number of innovative products and partnerships. It will lend directly to small businesses and micro-enter-prises. It will also continue to offer a guarantee scheme for large commer-cial banks who lend to small business-es. One of the new products is a joint Fund between SEFA, NAFCOC and FABCOS, which will be launched to-day. The Fund will have an initial cap-ital of R120m, with SEFA contribut-ing half. FABCOS and NAFCOC will each put 25% of the capital into the Fund. It will lend or invest in smaller companies which are not in the eco-nomic mainstream. It is intended that this Fund will grow over time, with new partners drawn from the private sector.

This Fund is about empowerment. It is about giving small enterprises a kickstart. It is one of many efforts to promote rapid growth. The Econom-ic Development Department has also launched a partnership with the South African Institute of Chartered Ac-countants, SAICA, to train 100 young people in financial skills and place them in small companies or in a busi-ness hub that will assist small, black-owned companies. When Walmart applied to take over the Massmart Group, we pursued a request that they localise some of their procurement. Two judicial processes later, the com-pany has been mandated to make up to R240 million available to support

Nafcoc Launches R1Bn Fund with Government and Fabcos

Address by Minister of Economic Development, Ebrahim Patel, to NAFCOC Conference, 23 November 2012.

Finance Enterprise Finance Agency (SEFA). The Launch of this event was nationally televised on the ETV Sun-rise programme and was attended by many dignitaries from the public and private sector. The launch was also attended by a delegation from the In-donesian Ministry of Co-operatives and SMMEs led by their minister Dr. Syarifuddin Hasan and his deputy.

The sNF Fund is currently wrap-ping up the regulatory and manage-ment processes of its operations be-fore embarking on its mandate. In his

speech Minister Patel said that the sNF Fund was a positive initiative in the partnership between government and the private sector in enterprise development. Nafcoc deputy presi-dent Mr Steve Sikhosana is the Naf-coc Trustee in the Fund together with SEFA Chief Executive, Mr Thakhani Makhuva and Fabcos Deputy Presi-dent Mt Phillip Usiba.

See Minister Patel’s Remarks on the launch of the sNF Enterprise De-velopment Trust Fund on Page 2

NEWS

Khwebo, The Official publication of the National African Federated Chamber of Commerce and Industry (Nafcoc), is published bi-monthly by Nafcoc

CONTACT DETAILS:Edited by: Nafcoc Projects Office Address: Nafcoc House, 13 Summer Street, Rivonia.Tel: (011) 807-6644Fax: (011) 807-9816e-mail: innocent@nafcoc.org.zaWebsite: www.nafcoc.org.za

Minister of Economic Development, Ebrahim Patel

You complained that government only made money available through middle-men, who added large mark-ups, which meant that the facilities were very costly.

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NAFCOC has unveiled a unique, “me paying now” healthcare payment gate-way for members currently covered by approved and recognised Medical Aid Schemes or Health Insurance Plans in South Africa.

When the current national execu-tive of the National African Chamber of Commerce and Industry (NAF-COC) was elected in 2009, it was given a mandate to come up with a turnaround strategy to take the organ-isation to greater heights. The NAF-COC leadership under president Mr. Lawrence Mavundla is determined to see the organisation take such strate-gic challenges seriously.

As part of this turnaround strate-gy, the executive acquired a major-ity stake in Medicard Investments (Pty) Ltd. This acquisition was done through NAFCOC’s new investment arm, Silver Vanity Group Holdings.

Medicard Investments has suc-cessfully introduced into the Medical Scheme Industry a VISA sponsored payment SWITCH which harmoni-ously enables the nation’s payment system to effect Medical Scheme’s re-lated payments at the time services are provide rather than weeks later.

Mr Mavundla, in an interview, said that NAFCOC’s vision for this tech-nological advancement is to offer cost effective, real-time settlements with the aim of speeding up the payment processes for cardholders who are members of both Open and Closed Medical Schemes

In taking advantage of existing in-frastructure and building capacity, the chamber’s nine provincial and 11 sec-tor offices would be used as branches for Medicard Investments Company. What is the Healthcare SWITCH and the Medicard? When asked if the SWITCH and Medicard is/are a Medical Scheme or a substitute for Health Insurance, the company’s CEO Mr. Friedman Twala set the record straight.

i. He clarified that the Medicard Payment Gateway is neither a Med-

local, particularly small suppliers.Government has launched support for the green econo-

my. This embraces all the activities that reduce the impact of carbon emissions on the environment. It includes activi-ties as different as installing a solar water heater, to expand-ing the public transport system, to repairing environmen-tal damage or creating sustainable agriculture operations. Small business must find its role and niche there.

Government has announced a major infrastructure plan. It includes the building of dams, rail-lines and road trans-port, power-stations, ports, hospitals, schools, universities and the laying of new powerlines and broadband. It will need small companies to be part of the construction pipe-line. Above all, we want to expand manufacturing activities. We want small, black businesses to move away from only selling goods that others make. Enter the productive sec-tors of the economy! The production of clothing, electron-

The Nafcoc founding president Mr Richard Maponya recently visited Nafcoc Head Office in Rivonia where he held wide ranging talks with Nafcoc current president Mr Lawrence Mavund-

la and his executive. Dr Maponya expressed his wish to work with Nafcoc and other key stakeholders to lob-by government to introduce entrepreneurial education in schools as part of Nafcoc’s 50th anniversary focus.

Dr Maponya, affectionately known as the ‘Godfather of black business’, said that there is much that the youth of South Africa can do in small business development and it was important for all key players in the economy to pro-mote entrepreneurial development among the youth to give them more room to learn about business at an early age. He said that this would also help the challenge of the high unemployment rate among the youth who, most of the time, leave high school or college with a strong desire to be employees rather than employers.

Nafcoc Unveils a “me paying now” Healthcare Payment Gateway as part of its multi- billion BBBEEE programmeDr Richard

Maponya, Founding President of Nafcoc pays a visit Nafcoc Head Office in April 2013

ical Aid Scheme nor a substitute for Health Insurance. It is rather a Health-care Payment Gateway/ SWITCH which is Visa certified and operating under the National Payment Systems Act; Act No. 78 of 1998.

ii. The Medicard is a convenient pre-paid transacting card which operated under supervision by a bank.

Twala added that traditionally, the bottleneck in the healthcare payment process is at doctor’s offices where in-sured patients who received care don’t know the final amount of their bills until several weeks after they receive a service.

Doctors on the other hand want to collect fees upfront. The current prob-lem faced by doctors and suppliers is that they have to wait months in order to get their payments after providing their services, because the bill for the actual services rendered is sent to the Scheme or Administrator who even-tually decides how much the scheme will pick up, what to pay the doctors (based on pre-negotiated pricing or Scheme rules) and what difference the patient is expected to pay days or even months later; a laborious process that slowed down healthcare payments.

One of its key features is that it treats health care payments like hotel room charges. Hotel rooms swipe your card at the front desk immediately as they know if you’ve used the mini-bar or charged anything to the room. “Similarly, a doctor’s office swipes the Medicard and sends it through this Healthcare Payment Gateway via a Point Of Sale device (POS) and all settlements are automatically effected in real time while the patient is still in the doctor’s office.

“We aim to reduces the cumber-some and unnecessary paper-based processing methods which are time consuming and expensive”, elabo-rated Mr. Twala “and this Gateway provides an “Insured Guaranteed Amount” (IGA) to the transaction whilst simultaneously sending the bill electronically to the Medical Scheme reporting it as cash payment by the

ic goods, parts for cars, food and beverages, furniture and school stationery, are all examples of what smaller compa-nies can do. NAFCOC must become an advocate for South African manufacturing.

Small black businesses can and must be essential parts of the supply-chains. Small businesses must aim to be more than simply spaza shops, or bed and breakfast establish-ments. You need to be in all the jobs drivers of the New Growth Path, creating wealth, expanding the economy. This is Africa’s moment and Africa’s challenge. To industrial-ise. To create decent jobs. To expand skills and know-how throughout our economies. In this context, I welcome the partnership with Indonesian institutions. We value the rela-tionship with the government and people of Indonesia.

In fact our relationship goes back 350 years ago, when slaves were forcibly brought from Indonesia to provide cheap labour to the early colonial economy run by the

member”. This is in line with the Medical

Schemes Act, Act 131 of 1998 which states that when a member “has paid cash to a healthcare service pro-vider for a service, such a member may claim for a refund from such a Scheme and that such reimbursement will be determined by the Rules of that Scheme.”

Another positive aspect of the Medicard is that it creates a shift from Medical Scheme’s manual payments to a “me paying now” real-time pay-ment gateway. The Medicard is gen-erally accepted everywhere where the Visa cards are accepted”.

It is important for cardholders, upon successfully swiping and paying for services rendered, to immediate-ly inform the Scheme of the ensuing claim for reimbursement and each claim form must contain the Member number; the Scheme name; the Ben-efit option; Surname and initials; the Patient’s name and Beneficiary code as it appears on the Scheme mem-ber card; the name and valid practice number of the service provider; the date of service; the nature and cost of treatment; the pre-authorisation num-ber, if applicable; the tariff code; the relevant ICD-10 code; the signature of a member to confirm that the account is valid; and proof of Medicard pay-ment slip highlight clearly the receipt from the healthcare service provider’s payments.

Who qualifies?

Every South African currently cov-ered by any approved and recognised Medical Aid Scheme or Health Insur-ance Plan can open up a Medicard Bank Account which he/she can uti-lised to pay for doctors, co-payments, deductibles, prescription drugs and pertinent health costs. In essence, this gateway is a unique SWITCH span-ning the ability to effect transactions within the National Payment Plat-form utilising leading edge banking technologies developed by banking technicians as far back as 1996. The Gateway/ SWITCH have continued to be updated in line with the changing face of the healthcare payments indus-try and technological advancements. “This Gateway is the only cost-effec-tive and safe payment solution availa-ble in the marketplace and provides a faster alternative” says Twala.

Dutch settlers in the Cape. Later, political prisoners were banished to our part of the world. Today we have two dem-ocratic societies, cooperating closely. Our two governments started a bilateral relationship that led to the formation of a Joint Binational Commission. Trade is already at about R12 billion between the two countries. The partnership on small business development is a good next step in the relationship.

What I have shared with you today is a small sample of the actions we are taking as government. But a successful nation requires actions and commitments also from the pri-vate sector and organised labour. I have no doubt many of the small businesses here today are partners in that national development, in job creation and in promoting economic growth. I wish the NAFCOC Conference every success as it deepens that partnership. Thank you.

NEWS

Dr Richard Maponya who is the founding president of Nafcoc together with Nafcoc leadership at the Nafcoc headquarters

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Premier Noxolo Kiviet praises Nafcoc for its role in Enterprise Development initiatives in SA

Nafcoc join hands with other global business chambers in PEERS ProjectNafcoc has been chosen amongst many NGO’s in the coun-try to be part of the Partnerships for Empowered Entrepre-neurs’ Representation in South Africa (PEERS)’ project. The Projects is being managed by TRIAS. Trias, a Belgian development organisation, supports entrepreneurial people in twelve countries in Africa, Latin America and Asia. In collaboration with 95 partner organisations, Trias helps to create enabling conditions for small scale entrepreneur-ship and family agriculture. Trias is a movement NGO - it is backed by three rural and three entrepreneurial Member Based Organisations (MBOs) and by a larger network which supports the vision of Trias in Flanders. In line with this

Eastern Cape premier Ms Noxolo Kiviet praised Nafcoc for its sterling role in en-terprise development. Speaking at the 48th Nafcoc Annual Conference , Kiviet said , ‘Indeed, since 1994 NAFCOC has been at the forefront of championing the interests of small businesses in South Africa and as such, the organisation has participated robustly in engagements that have seen the African National Congress (ANC) led government adopt a number of progressive pieces of legislation, to develop and sup-port small businesses in our country. The ANC realised from the outset that small businesses are a vital mechanism of ad-dressing unemployment, poverty and un-derdevelopment.’

The Premier also thanked Nafcoc for playing a positive role in government’s quest in building international coopera-

identity, Trias’s main strategy is strengthening MBOs of farmers and entrepreneurs in the South.This project aims to strengthen three local entrepreneurs’ organisations, namely Afrikaanse Handelsinstituut (AHI), NAFCOC and the South African Chamber of Commerce and Industry (SACCI).

Trias has established an office in South Africa under the leadership of Stephen Miller as Country Director. It hopes to start the implementation of the ‘Partnerships for Empowered Entrepreneurs’ Representation in South Africa (PEERS) with a meeting of its stakeholders on 27 May 2013 in Midrand, Johannesburg.

The three-year, 1.9 million euro project is financially

tion by inviting the Indonesian Minister of Co-operatives and SMMEs , Dr. Syarifud-din Hasan who attended the Nafcoc Con-ference with a delegation of 12 that includ-ed his Deputy.

Some excerpts of Premier Noxolo Kivi-et’ Speech below

“I am also delighted that in our endeav-ours to build international partnership for growth and development, we are sharing the vision of a stronger SMME sector with NAFCOC. We are grateful therefore to NAFCOC for the honour of jointly hosting the Minister of Small Business Develop-ment in Indonesia.”

“We must intensify our collaboration and partnerships with NAFCOC at all lev-els, which have been very progressive thus far.”

“As a province we are proud of the foot-

backed by the Flanders International Development Agency, Trias, UNIZO, the associated employers’ group in Flanders, and the three partner organisations themselves. Through the project activities, the entrepreneurs’ organisations will be strengthened to take up their role in representing entre-preneurs and act on impediments and structural barriers to successful entrepreneurship in South Africa. To achieve this objective, the project will focus on internal capacity-build-ing of the partners’ secretariat and local chambers, the pro-vision of integrated quality services to the members, and the improvement of the lobby and advocacy capacities at central and local level.

print we are making in terms of providing development finance, business infrastruc-ture and Business Development Support to members of NAFCOC and other aspiring business people. This is at micro level or individual membership level.”

“Through the Eastern Cape Develop-ment Corporation, we continue to engage NAFCOC as an association of businesses in order to understand their financial and business development requirements. We are customising our products and service to respond to their needs. We do, from time to time, collaborate in undertaking pro-jects with growing pockets of excellence in District Municipalities and in the Prov-ince. One of our highlights is our collabo-ration with NAFCOC to execute the “Buy Eastern Cape Campaign” as well as Local Business Service Centres”

NEWS

Premier Noxolo Kiviet and Dr Hasan

Nafcoc and Indonesia agree to establish the National Small Business Trade Centre in Pretoria targeting R4b per annumNafcoc has agreed with Indonesia to establish the Nation-al Small Business Trade Centre (NSBTC) . The NSBTC will provide a platform upon which Indonesian and South African traders can trade under one roof in a large trading centre. The Tswane Showgrounds have been identified for this project. A team from the Indonesian Embassy and In-donesian Trade Promotion centre, led by the Indonesian Economic Counsellor at the Indonesian Embassy, Mr Ber-lian Helmy, recently held high level discussions with the

Nafcoc team led by Nafcoc President and his deputy in Pretoria where it was agreed that the NSBTC had to be implemented as a matter of urgency. The two delegations also agreed that a pilot study of the project will be started by a few selected traders from both countries with a view of increasing the number with time as the NSBTC become better known. Nafcoc Deputy President, Mr Steve Sikho-sana was upbeat about this development ‘this is a major breakthrough. We believe that this is a workable option as

opposed to the China City model where only a particular nationality establishes itself at the expense of locals. We view this as a win-win model where the traders from the two countries can learn from each other and save money in sharing costs such as advertising, rent and other costs.’’This development comes at the back of a successful trade mission to Indonesia in March 2013 which Nafcoc em-barked with the Eastern Cape government.

Training:Competitive Edge and Manufacturing Supplier Development trainingDate: July 2013Venue:Contact Person:Rosina MoutlanaTel:011 807 5063(Nafcoc National Office)Nafcoc Annual Conference 2013Date: November 2013Venue: To be confirmed

Indaba:Stakeholder & Membership IndabaVenue: Tshwane Show Grounds in Pretoria Date:30 July 2013

UPCOMING EVENTSRoad shows:Road shows to all provinces in partnership with government departments and parastatals Date:September to November 2013

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Open Letter by Nafcoc President

There are several reports which we believe have been malicious-ly and misleadingly published regarding the Nafcoc court case.

It is my pleasure to correct same and provide the true reflections and updates. A negative campaign is being waged by those who seem to be avoiding accounting on massive mis-appropriation of Nafcoc assets and billions over the years, for which we have already opened a criminal case with both the Police and Hawks under case number 805/02/2011. Investigations are also been done by several law enforcement agencies such as the NPA, SARS, DTI and other relevant government departments. It is our believe that the news-paper reports did not give you the accurate facts on the matter and therefore it is our re-sponsibility as the legitimate Nafcoc leader-ship and council to clarify some the issues which have not been recorded accurately.

There have also been allegations from Rev Hlongwane and his group purporting to be the Nafcoc leadership, of which they are not, to the effect that Nafcoc President Mr Lawrence Mavundla’s leadership of the organisation and mandate have lapsed and such mandate is now vested in the hands of our company NAFHOLD directors and some rebels and expelled individuals from

Nafcoc. The next paragraphs seek to clar-ify what transpired regarding the case and to address the negative propaganda and media campaigns that have been spread over the past weeks regarding the matter.

On 24 May 2013, a notice to NAFCOC members, stakeholders and service pro-viders was wrongly published by NAF-HOLD executive director Rev Hlongwane in the City Press, representing himself as the President of the group purporting to be NAFCOC. The aim of the notice was apparently to inform our NAFCOC mem-bers, stakeholders and service providers that the NAFCOC executive committee’s application for leave to appeal against the judgment of the Honourable Mr Justice Monama was dismissed, in an attempt to legitimise NAFHOLD’s Rev Hlongwane’s claim to be the President of NAFCOC.

Rev Hlongwane is not the duly elected President of NAFCOC and has no claim to that position. He is not even a member of any of NAFCOC’s affiliated sector mem-bers according to NAFCOC records since his retirement.

On 6 December 2012, persons purport-ing to be members of the council of NAF-COC of which they are not, held an invalid meeting which was not attended by any of NAFCOC’s seeting and legitimate council members. The meeting purported to re-move the current and legitimate members of the executive committee of NAFCOC from office and appoint a new executive committee, including Rev Hlongwane as its President.

Prior to the 6 December 2012 meeting being held, NAFCOC launched urgent le-gal proceedings to interdict the meeting. No judge was available to hear the matter and an interim order was handed down suspending any resolution passed at the meeting pending the hearing of the mat-

ter in January 2013. NAFCOC returned to court in January 2013 in order to declare the meeting of no force and effect; howev-er Judge Monama refused the application on the basis that the interim order had ren-dered the relief sought by NAFCOC moot.Accordingly, NAFCOC and the majority of the members of the executive committee made application for leave to appeal Judge Monama’s judgment and, on 21 May 2013, Judge Monama dismissed the application.NAFCOC and the executive committee as well as the seating council have now pe-titioned the Supreme Court of Appeal for leave to appeal. NAFCOC and the execu-tive committee of NAFCOC are confident that the prospects of succeeding in the ap-peal are very good.

Judge Monama’s judgment does not validate the meeting held on 6 December 2012 and the resolutions passed thereat. It remains a meeting of the parallel council. Mr Lawrence Mavundla remains the Pres-ident of NAFCOC and Sonyosi Stephens Skhosana, Teme Emmanuel Letsoela, Sek-wamo Gilbert Mosena, Churchill Mrasi, Zandile Nkabinde, Margaret Bango, Har-old Phumzile Ndendela, Daniel Kotze and Chuma Shweni remain the other members of the executive committee of NAFCOC.The meeting on 6 December 2012 is not the first time that persons purporting to be members of the council of NAFCOC have unlawfully attempted to depose the cur-rent leaders of NAFCOC. On 15 Novem-ber 2011, a meeting was called and held at which resolutions were purportedly passed removing the current members of the exec-utive committee from office and appoint-ing new members. NAFCOC successfully obtained an order from the South Gauteng High Court permanently suspending the resolutions passed at that meeting because it was NOT a Nafcoc meeting but a parallel

group allegedly funded by NAFHOLD.The invalid meetings and the illegitimate, parallel structures constituting them are driven and accommodated by Michael Leaf and Rev Hlongwane, respectively the Chief Executive Officer and Chairman of NAFCOC Investment Holding Company Ltd (“NAFHOLD”), a company set up to hold investments for the benefit of NAF-COC and its members.

NAFHOLD holds substantial assets and is controlled by Mr Leaf and Rev Hlong-wane. Notwithstanding the function and purpose of NAFHOLD and that it has al-ways been the intention and understanding that the value contained in NAFHOLD would be unlocked and distributed to the members of NAFCOC, the considerable wealth that has been built up in NAF-HOLD has not filtered down to NAFCOC and its members. The current members of the executive committee of NAFCOC have vigorously challenged Mr Leaf and Rev Hlongwane in this regard and contin-ue to do so. In response, Mr Leaf and Rev Hlongwane have orchestrated a campaign to remove and replace the current leaders of NAFCOC and replaced them with peo-ple who have no clue about hidden activi-ties of NAFHOLD over the years.

In conclusion, we are seeking leave to appeal on petition against the judgement of Monama. We strongly believe that the judgement is fatally flawed and is most likely to be overturned on appeal. Together with my executive committee, we will con-tinue to lead NAFCOC in its best interests.Nafcoc has Vision 2014 to accomplish and we shall not be destructed by those who avoid the accountability and violate the constitutional provisions of NAFCOC.South Africa does not promote an uncon-stitutional way of usurping leadership.

NEWS

Nafcoc President Lawrence Mavundla

There are currently over twenty af-filiated sectoral members. About 12 represent various sectors of the economy and nine represent

sectorised provinces. NAFCOC members are affiliated sectoral members, corporate members and honorary members. Indi-

viduals can only be members of those sectors within which their businesses operate. The Council of Nafcoc is the highest decision making body and has mandated the Executive Committee under the leadership of Mr Law-rence Mavundla which was re-elected during the NAFCOC National Conference held in Eastern Cape from 23-25 November 2012.

One of the important landmark resolutions of the AGM was a resolution that pronounced Nafcoc as a fully-fledged Federation of sec-tors which in turn operate autonomously as chambers. The aim was to boost the SMMEs development of individual businesses by the different sector chambers. The second impor-tant resolution adopted at the conference was the constitutional interface between the 2008 and 2011 constitutions, which gave birth to the holding of the national elections. The 2008 constitution gave a three year term to the pres-ident and a four year term to other members of his executive. There was a need to rationalise this and come up with a term that was in line

with the 2011 constitution and other progres-sive organisations of Nafcoc’s calibre.

Therefore, the five year tenure of the Mavundla leadership effectively commenced from November 2012 and will end in Novem-ber 2017.

The Conference further resolved that in or-der to effectively implement industry based chambers, there was a need to adopt the rec-ommendations and resolutions of the 2012 Council Summit which among others included the adoption of the Constitution’s 4th amend-ments, whose emphasis was the industry sec-tor based organisational makeup of Nafcoc. This would enable the industry sectors to be more autonomous and have more capacity to respond to government policy as stand-alone entities.

The Conference also voiced its support and endorsement of the government’s focus on in-dustrialisation particularly among SMMEs and the beneficiation of minerals resources. It was also the Conference’s resolution that Nafcoc

support the government’s review of the relevant legislation of black economic em-powerment to be more radical in address-ing the inequalities of the past.

We have also managed to create rela-tionships with different provincial gov-ernments and one such relationship saw us successfully concluding a return trade mission to Indonesia accompanied by the Eastern Cape Provincial Government. We have also lobbied on matters affecting our membership at different platforms such as cabinet and parliament and in November 2012, at our Annual Conference, we suc-cessfully launched the sNF Enterprise De-velopment Fund together with FABCOS and the Small Enterprise Finance Agency (SEFA). We have visited many countries and have made numerous business oppor-tunities for our members.We are working tirelessly at ensuring that NAFCOC is in papers for the right reasons.

FROM THE SECRETARY GENERAL’S OFFICE -FEEDBACK ON NOVEMBER 2012 CONFERENCE

Nafcoc Secretary General Gilbert Mosena

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From 13 to 25 October 2012, Naf-coc led a 60 strong multi sector delegation to Indonesia made up of its membership from all provinces

of South Africa. The delegation sought to investigate the success story of Indonesia in job creation, SMME development and Co-operatives. The delegates also sought to unmask the reasons behind Indonesia’s march from an average economy to an econ-omy commanding a frontline seat in the South East Asian region.

Aims and Objectives of the Mission• To introduce and foster Parallel Econo-

my programmes of Nafcoc • To foster trade between business and

government • To expose leadership to economic cli-

mate different from South Africa • To look for business partners in the field

of all Nafcoc sectors • To establish trade and business relations

between Nafcoc and Business community of Indonesia

• Learn firsthand the reasons behind the success story of Indonesia’s SMME in-dustry. Of the country’s 53million busi-nesses, 99% are SMMEs.

• Learn about the country’s phenomenal growth in co-operative banking and key reasons behind the growth.

• Learn about the role of government in the SMME industry and what support struc-tures if any the government offers to the SMME sector.

• Investigate and identify the role of the Chamber of Commerce in supporting business.

• To lobby for business and technical sup-port

• To promote Nafcoc members business

• Expose delegates to the intricacies on In-ternational Trade.

• To partner with Indonesian institutions to establish black owned and controlled bank in South Africa

• Provide a platform upon which Nafcoc delegates can interact with their col-leagues from Indonesia and other coun-tries.

• Provide a platform upon which delegates could negotiate and sign up for business deals

Observations MadeI. The government views SMMEs as an

enI. The government views SMMEs as an engine for economic growth and sup-ports them with programmes aimed at nurturing their growth.

II. The legislation pertaining to trading is friendly such that there is freedom to en-terprise for different types of businesses without fear of arrest.

III. The co-operatives and SMMEs have a dedicated government ministry and this

allows government timely and undivid-ed attention.

IV. There is a strong working relationship between government and the cham-ber of commerce based on respect and co-operation

V. Most companies produce for export/technology development and coordina-tion.

VI. Working from home/ home industries encouraged.

VII. Indonesia has a robust production sec-tor which manufactures many goods as opposed to South Africa’s focus on con-sumption culture.

VIII. There is a strong entrepreneurial spirit in Indonesia which has ensured a very low unemployment rate of 6%.

IX. Indonesians have a high degree of toler-ance and respect for one another.

X. Indonesians work long hours and they seem to reap the benefits of such a work ethic.

Nafcoc 2012 Indonesia Trade Mission

Further to this Mission, Nafcoc went on a weeklong joint trade mission to Indonesia with the Eastern Cape provincial govern-ment with a joint delegation of 25 delegates from 10-15 March 2013. The government group was led by the Premier of Western Cape, Ms Noxolo Kiviet who led a dele-gation of 15 including MEC for Economic Development Mcebisi Jonasi and MEC of Agriculture Mrs Rosemary Capa. Nafcoc’s delegation was led by the National Presi-dent, Mr Lawrence Mavundla whose dele-gation included the, Black Business Council President Mr Ndaba Ntsele, Nafcoc Deputy President Mr Stephen Sikhosana and Naf-coc Secretary General Mr Gilbert Mose-na. The delegation scored major victories as it signed major trade and co-operation agreements with different departments and organisations in Indonesia. This Trade mis-sion sought to consummate discussions and MoUs signed by Nafcoc in 2012 and to ex-pose the government of Eastern Cape to ar-eas that Nafcoc thought needed joint focus between business and government. These areas include;

Co-operativesIndonesia boosts of a very respectable Co-op-eratives sector with a ministry dedicated to Co-operatives and SMMEs. The responsible minister, Dr Syraffidun Hasan, was a guest of Nafcoc and the Eastern Cape Provincial government during Nafcoc’s 48th Annual Conference held in East London from 23-25 November 2012. It is hoped that the mission to Indonesia will cement relations forged among the parties and forge new frontiers for co-operation. Indonesia’s second biggest bank , BRI Bank is a co-operative bank. Bank Rakyat Indonesia or PT. Bank Rak-yat Indonesia (Persero) (BRI), translated. ‘People’s Bank of Indonesia’, specialises in small scale savings and microfinance style borrowing from and lending to its approxi-mately 30 million retail clients through its over 4,000 branches, units and rural service posts. It also has a comparatively small, but growing, corporate business. As of 2010 it is the second largest bank in Indonesia by asset. Nafcoc has established a relationship with BRI Bank and it hopes to further con-summate this relationship together with the

Eastern Cape provincial government, one of the country’ provinces with a well laid out co-operatives agenda.

Job CreationIndonesia, in comparison to its population of 245milion people, has a very low unem-ployment rate of 6.6% (https://www.cia.gov/library/publications/the-world-factbook/geos/id.html ). For such a vast nation, it is a phenomenal achievement and it is hoped that a focused attention on Indonesia’s job creation initiatives will be an eye opener.

SMME DevelopmentIndonesia appears to have a very committed and objective SMME development policy further enhanced by a ministry committed to Co-operatives and SMMEs. Of the coun-try’s 53million businesses, 99% are SMMEs

contributing just over 50 % to the country GDP.

AgricultureIndonesia has a robust agricultural sector which plays a very significant role of feed-ing its quarter of a billion citizens. Some of its key produce include, rice, cassava (mani-oc), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggs.Small to Medium Scale IndustrializationIndonesia’s small to medium scale factories are at the cutting edge of industrialization as the produce significant products into the market for domestic and external consump-tion. Thus the country provides an important platform of information on how to develop small to medium scale industrialists into im-portant players of the economy.

Nafcoc Returns to Indonesia with the Eastern Cape Government: 10-15 March 2013

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Nafcoc Leadership at the Pan African Parliament Building with Indonesia visitors

Eastern Cape Chairperson Pumzile Ndendele greets his Premier Noxolo Kiviet in Indonesia

Indonesian Ambassador , President Mavundla & Nafcoc Leaders

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Nafcoc membership administrators from all Nafcoc provinces and sectors converged at Nafcoc Head Office from all the four cor-ners of South Africa for a two day intensive training programme from the 24th-25th May 2013.

These administrators were being trained on Nafcoc’s newly acquired database man-agement system known as the CMMS (Cli-ent Membership Management System). CMMS allows Nafcoc and Sector database administrators to communicate with Head Office in real time. It also provides the or-ganisation updated statistics as regards the numbers of members falling within a cer-tain category- nationally, provincially or even at Sector level.

Speaking at the Launch of the Training programme, Nafcoc President, Mr Law-rence Mavundla had this to say ; ‘People like you are at the frontlines of the Infor-mation revolution that has caught up with our world. Our planet today is bombarded with various sources of information and we cannot afford to ignore the onslaught. Or-ganisations ignore information at their own peril. This is because an organisation with information about different facets of its be-ing is able to make timely and important de-cisions that can make or break it. At Nafcoc we realise and appreciate the importance on Information and we think that this training is a clear proof of this.

The life blood of a business chamber

is its membership. We live and exist for the thousands of South Africans scattered across the breath and width of this vast re-public. An intimate knowledge of our mem-bers is a halfway journey towards the heavy mandate we carry from them. The CMMS helps us to collate information about our members who in the strictest sense are our ultimate employers. It helps us to gather important details about them in order to best serve them.’

Nafcoc Deputy President, the key driver of this system had nothing but praise on the system, ’This system opens a new page in our ability to effectively gather and man-age member information. A vast and huge organisation like ours requires an efficient, modern and robust system to manage its membership data’

Mr Gilbert Mosena and Mr Boetie Let-soela, Nafcoc Secretary General and Treas-urer General respectively also attended the training programme launch and encouraged trainees to do their work diligently as they were the custodian’s membership informa-tion.

It was all smiles on the 25th of May 2013 when the trainees where awarded Certifi-cates of Competency by the Nafcoc Secre-tary General who encourage the recipients to view their certificates as recognition by Nafcoc that they were now competent to use and manage the high tech system.

Nafcoc introduces a new data-base system for its Members

SG handing over certificates to members who attended the programmeTraining programme in process Some of the members who attended the tarining

Further to hosting the 2012 Annual Nafcoc Conference that saw thousands of govern-ment and businesses decisions makers con-gregating at the East London International Conference Centre, In East London, the Eastern Cape Nafcoc Province has contin-ued its business unusual approach.

At the Conference, Nafcoc Eastern Cape also hosted, on behalf of Nafcoc, a 12 member delegation from Indonesia led by its Minister of Co-operatives and SMEs, Dr Syraf Hassan and his Deputy.

As If all these milestones were not enough, the province, under the chairman-ship of Mr Pumzile Ndendela went on to invite its provincial government to a joint trade mission to Indonesia. Mr Ndendela and the Nafcoc Provincial Secretary Mrs Mercy Mini had together with other mem-bers of the province previously represented their Province in the Nafcoc 2012 Indone-sia Trade Mission where they returned con-

fident that Indonesia was a role model in good government - business relations.

The Premier of Eastern Cape led a 15 strong member delegation of her gov-ernment made up of political heads and technocrats from key institutions such as ECDC and Coega. Cabinet members who accompanied the premier were MEC of Economic development Mr Mcebisi Jona-si and MEC of Agriculture Mrs Rosemary Zoleka Capa.

Speaking of this trip, just before his de-parture, an upbeat Ndendela had this to say, ‘This is a new page in the business-govern-ment relations in the spirit of co-operation. Business and government have looked at each other with strong suspicion for long. We believe that this is the time for govern-ment and business to say to each other ‘you are a worth partner in our country’s quest to meet with its economic destiny’.

Nafcoc Eastern Cape takes its government to Indonesia

Eastern Cape Chairperson Pumzile Ndendele greets his Premier Noxolo Kiviet in Indonesia

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KZN Council Meeting 2013The KZN National African Chamber of Commerce (NAFCOC) held its council meeting in April, following concerns about the future of the federation. The NAFCOC national leadership including the Deputy president, secretary general and the treasur-er general formed part of this all important council meeting, in an attempt to clear some issues which had become of great concern to sector members of the KZN NAFCOC.

First on the agenda was the litigation processes which NAFCOC deputy presi-dent Mr S Skhosana set to make understood by sector members, who form part of the federation. Sector members wanted to un-derstand what the situation is with the fed-eration to which they are affiliated, as there have been media reports that NAFCOC is on the verge of collapse. Skhosana put it to

sector members that NAFCOC is alive and well but added that there are people who are threatening the federations well being.

Another issue of crucial importance which was on the agenda of the council meeting was the strengthening of sectors within NAFCOC. Skhosana encouraged sector members to strengthen their sectors, explaining that sectors are the backbone of NAFCOC. He further explained that an in-dividual becomes a member of a sector and that sector becomes a member of NAFCOC, since NAFCOC is a federation. Skhosana also said the National Council nationally took a decision that it is sectors which will stand for NAFCOC at the Black Business Council (BBC) level. According to Skhosa-na, Government will not talk business with someone who is not in a sector.

The KZN NAFCOC was tasked with en-suring that its sectors are “alive and kick-ing”. Skhosana said he expects all 10 sec-tors to meet on a monthly basis and make use of the provincial office. SKhosana also used the platform to remind sector members that NAFCOC has one constitution which he added gets amended every now and again. The NAFCOC constitution was last amended in March 2011.

A number of KZN sector members were gravely concerned about KZN NAFCOC funds, saying they would like to know where the money is. Skhosana explained that about R35 million of KZN funds are in the wrong hands. He said this is the rea-son the KZN office is not getting that much money to work with.

Skhosana also raised concern about there

not being an active youth sector in KZN. According to Skhosana, KZN must ensure that the youth sector is strengthened. He said not having or strengthening the KZN youth sector defeats the purpose of the NAFCOC mandate .

Last on the agenda was a brief overview of the 2008 NAFCOC constitution. Expert on the constitution Mr Mrasi explained to sector members that the 2008 NAFCOC constitution was wrong. He said that 2008 constitution was for an association rather than a federation which NAFCOC is. Mrasi, explained that a constitution is a living doc-ument as it is amended from time to time. Mrasi further explained that a constitution does not change because of amendments.

Whoever said the Jungle could not be brought to Soweto was wrong. Lindiwe Mngomezulu a member of the South African

Leisure Tourism and Hospitality Association (SALTHA) has done it.

Mngomezulu who has been a member of SALTHA for over 5 years is the owner of Soweto’s Snakes Show. She has been in this business since 2009.

Mngomezulu operates from her Orlando West house on Vilakazi street.

The snakes are attracting and charming tourists and township folk, who come in their numbers to stare in awe at the slither-ing, beautiful creatures for R10.

Vilakazi Street is known of being a cul-tural melting pot, offering everything from indigenous food to African music and dance performances and the opportunity to have one’s portrait sketched at a street-corner stu-dio. And the experience is not complete with-out a visit to Mamfiso’s Snake Show.

Her five snakes, Pikinini, Landi, Pep-si, Cola, and Deon, have become members of the Mngomezulu family. The reptiles live comfortably in their glass cages in the Mgomezulu’s living room, with lights and heaters installed in their cages.

But Mngomezulu said there is room for improvement in the business, since they sometimes rely on tour guides to also pro-mote their Snakes business..

SALTHA members making a difference on Vilakazi Street

Mrs Mngomezulu and her daughter

Nafcoc Secretary General Mr SG Mosena , speaking about the Pan African Parliament building which Nafcoc owns through its in-vestment arm , Silver Vanity Investments , which he also leads as the Chief Executive, had this to say “Nafcoc is the only black run organisation that accommodates more than 53 African countries under one roof.”

He appealed to government, especially

Minister of Public Works , Mr Thulas Nxe-si, who also attended the 48th Conference in East London in November 2012 to consid-er NAFCOC in the leasing business of gov-ernment departments. Nafcoc is busy sign-ing options with various properties owners, some still accommodating government de-partments but lack empowerment contents.

Nafcoc Houses Africa Under One Roof

Nafcoc Secretary General and Silver Vanity Investments Group Chief Executive- Mr Sekwamo Gilbert Mosena

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NAFCOC Gauteng Report back on Activities for the Year So Far

NEWS

As a business support organisation with its heart firmly set on economically liberat-ing the African business soul by balancing the playing field, National African Federal Chamber of Commerce and Industry (NA-FOC) remains steadfast in its efforts to draw the black majority into participating in main-stream economic activity and decision-mak-ing. With continual engagement with the government and private business, the organi-sation prides itself in promoting unity within the business fraternity in South Africa. We explore and report back on the activities for the year so far from the three NAFCOC pro-vincial offices of Gauteng, Eastern Cape and Western Cape.

In Gauteng, a partnership between South African Leisure Tourism and Hospitality As-sociation (SALTHA) and Liquor Traders As-sociations has been established wherein liq-uor traders have been offered a 49% stake in ownership and distribution rights of a wine product called Strategy under the Lindhorst label.

Not only is the Gauteng regional office giving ownership to its member, but it has also started an academy to train these mem-bers to help optimise their chances of suc-cess in the ventures they embark on. The NAFCOC Gauteng Skills Academy address-es the rampant challenge of skills shortage that is not only affecting the province of Gauteng or black business but has become a national crisis. The initiative provides sector specific trainings from all sectors and offers

SETA accredited courses to all members, giving them sufficient qualifications in order to gain a competitive advantage in business.

Understanding the importance of mentor-ing, the regional office has set up NAFCOC Gauteng Good Business Society; which is a business development programme where a professional team of business consultants visit NAFCOC members, region by region, and deliver business development solutions for corporate governance. Members are as-sisted mainly in the matters of compliance, company registrations, legal issues, account-ing and bookkeeping, among others.

Funding has remained the biggest chal-lenge of NAFCOC Gauteng; the mission of building partnerships and networks that would yield financial inflows has not gone quite as planned and hat has adversely im-pacted the implementation of programmes as initially planned. The province, however, plans to develop more economy driving pro-grammes through the inclusion of the small business sector and by reviving the reputa-tion of the organisation through actions and execution, following a “a little less conver-sation, a little more action” approach.

Although bringing in “fresh blood” with new ideas and a new way of doing business seems like a risky way to execute a turna-round strategy for the province, NAFCOC Gauteng believes making bold decisions is the best option to make a complete U-turn of what has not gone according to the book.

Gauteng Chairperson Monga Phaladi

NAFCOC Western CapeIn partnership with the construction sector NAFCON and the provincial MEC for Human Settlements, NAFCOC Western Cape has do-nated R100 000 to be used in building houses for two people with disabilities in Khayelitsha during the month of April. This is in addition to the flagship housing projects in the Khay-amandi area and Mosselbay in the Metro and Edens region. It is the partnership’s intention to allow the sector to build more housing units for the vulnerable members of our society.

During the annual “Business Meets Cabi-

net” event, a network platform was created for local and international investors; with the aim of, among others, assisting emerging farmers with their cooperatives by building manage-ment and operational capacity. This is over and above NAFCOC’s involvement in the Busi-ness Western Cape structure which consists of five chambers.

Internal challenges with regard to leader-ship are acknowledged by the provincial office and it pledges to rise above these and move the organisation forward.

Western Cape Chairperson Mongezi Memani

According to Mr Lawrence Mavundla, pres-ident of the National Federated Chamber of Commerce & Industry (Nafcoc), consulta-tions with stakeholders from all over Africa are underway for a landmark Parliamenta-ry precinct for Africa. Silver Vanity Group Holdings, an investment consortium of Naf-coc the oldest and largest African Chamber of Commerce is set to start construction this year.

Nafcoc was recently visited by officials from Indonesia’s WIKA Limited. Nafcoc, through its Investment Company, Silver Vanity and WIKA are having discussions around partnering in the construction of the

Pan African Parliament Precinct. WIKA is one South East Asia’s biggest construction companies and has a very impressive track record in the construction of major building projects in Asia and Africa.

Asked by Khwebo staff reporter on the development , Silver Vanity Group Hold-ings Chief Executive and Nafcoc Secretary General , Mr Gilbert Mosena , pointed out that there is still more work to be done on the project. He said discussions and con-sultations with the necessary stakeholders were under way and that the priority was not speed but a strong foundation in terms of agreements and funding partners.

Nafcoc, through Silver Vanity, present-ly owns the Pan African Parliament build-ing. The building houses the Parliamentary chamber and administrative offices of all the African member states of the Pan Afri-can Parliament. The building project aims to provide a precinct which will have a hotel, offices, banks, hospital, shops and apart-ments for the Pan Africa Parliament mem-bers and staff. Nafcoc, through Silver Vanity Investments presently owns the Pan African Parliament building, which is an arm of the African Union and is hosted by South Afri-ca through the Department of International Co-operation.

Nafcoc plans R16bn Midrand complex

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NEWS

partment of Education, and supported by Deputy President of the country.

Numerous skills development programmes and workshops have taken place already in the 2013 calendar year; these include the Kaolin Mining workshop conducted by Makana Mu-nicipality in Grahamstown which took place during the month of January, the training of Coordinators and SMME’s Assistants con-ducted by Transformation Africa held in East London in February, and the CIDB work-shop conducted by the Department of Public Works for OR Tambo region in Umthatha, also taking place in February.

Lack of involvement of locals on all in-frastructure development in the province is one major challenge faced by the provincial office; the concern is that strong poverty alle-viation strategies are not embraced to address the needs of SMME’s in line with government

sectors. Vast inequalities continue to exist as emerging SMME’s do not have a privilege of being granted projects without competing with well-established and white male domi-nated businesses.

Strengthening business unity in the prov-ince is one of the main aims of the NAFCOC Eastern Cape, and the provincial office con-tinues to engage government to intervene where there are disputes. With the under-standing that cash-flow is the livewire of any business, particularly SMME’s, the organ-isation is determined on the establishment and the enforcement of the 30-day payment on procurement clause. NAFCOC Eastern Cape believes there should a budget that is ring-fenced for SMME’s development and it must be incorporated within government pro-grammes.

NAFCOC’s female members in the con-struction sector are given a helping hand by the Department of Human Settlement; each member has been allocated 20 low cost hous-es to build. Also on track is another transac-tion aimed at involving more women owned businesses in the construction and manufac-turing of protective clothing in East London. The provincial office is hard at work facilitat-ing the opening of the traditional herbs farm and seedling in Grahamstown, wherein the suitable farm for this operation has been iden-tified and all the necessary documentation has already been presented; in the same breath the retail sector is in the process of opening a warehouse in OR Tambo region.

In the face of many issues faced by schools province, NAFCOC Eastern Cape has also thrown its weight behind the re-opening of schools programme, conducted by the De-

Women are shaking up the construction scene in the Eastern Cape

With Statistics South Africa’s quarterly la-bour force survey revealing that the number of unemployed people has increased by 100 000, to 4.6 million between the fourth quar-ter of 2012 and the first quarter of 2013 it is evident that the South African business sector has its work cut out for it, if it is so salvage the economy of this country. We spoke to two people who lead the youth and women in business at NAFCOC to under-stand more about what it is that they do as well as the challenges they face in business. This in an attempt to get more of the youth and women interested in creating jobs rath-er than seeking jobs, especially during these hard economic times.

We spoke to NAFCOC’s youth lead-er S’bu Mavundla, who is the director of a Marketing and Communications company called ‘Rodinite Holding Company’. The company has been running for two years now, although Mavundla has been in busi-ness for 7 years. We also spoke to Margaret Bango who is the Deputy Secretary General

of Nafcoc is a woman in business. She runs her own company which she describes as an investment and women empowerment vehi-cle. Bango’s business has been running since 2004.

According to Mavundla, they (him and his partner) were looking to get into something they had not done before and which would challenge them when they started their Marketing and Communications Company. He says they had identified a niche market adding that they then took a chance which turned into a viable venture they run today.

Both Mavundla and Bango make no secret of the fact that venturing into business comes with a number of challenges. Mavundla says some of these challenges include the con-stantly evolving industry, application of new technology and cash flow amongst others.

Mavundla and Bango say despite chal-lenges presenting themselves in business, being affiliated to a federation like Nafcoc has really helped their businesses to a large extent. Mavundla explains that Chambers of Commerce serves as a platform for business people to network and lobby for the advance-ment of its members’ businesses. He advises business people to be members of sectors and be affiliated to federations especially Nafcoc because of the way it is structured. Mavundla further explains that Nafcoc is a sectorial federation with structures he says are better placed to deal with the needs of its sectorial members also giving them sec-tor specific solutions. Bango says Nafcoc is also a well-recognised and respected federa-tion adding that being a member of a sector which is affiliated to Nafcoc makes running your own business slightly easier.

When starting a business, one of the main purposes is to make profit, but it does take time for a business to firstly break even, and then start generating profit. Mavundla says it took his business 18 months to break even adding that they are only anticipating profitability in the current financial year. Mavundla says their expectations may have been unrealistic in the beginning adding that they have since realised that they are to meaningfully participate in the Nafcoc struc-tures for them to get the full benefit of being a member. He explains that being affiliated to Nafcoc has to a certain degree helped

them to grow their business networks which he says has resulted in them doing business with members of other sectors affiliated to Nafcoc and in some instances its structure

Mavundla has described the nature of the South African business sector as being largely imbalanced saying that it continues to reflect the unfortunate past of this coun-try. Mavundla says this is also demonstrated by the income disparities between industry Capitalists (whom he says majority are lily white) and the unskilled and semi-skilled labourers ( majority of whom he says are black) According to Mavundla it is unfortu-nate that after close to a decade of the coun-try’s democratic dispensation, there are still these glaring realities. He adds that it will take a collective effort to redress these his-toric imbalances.

Bango says the future of black business specifically would look brighter if women are also properly economically empowered not just empowered politically. Mavundla on the other hand says the black business sector must realise that it is not enough to only rely on Government tenders, adding that the busi-ness sector is much broader than tenders. He says black people in business need to start working as a unit, use their buying power to

amass capital and support one another. Mavundla has advised the youth to ven-

ture into business for a number of reasons. He says the future of South Africa and its economy is in the hands of young people. Mavundla says it is not sustainable to have an unemployed youth population adding that the only way that the much needed jobs can be created in this country is by investing in quality education, skills development and a culture of entrepreneurship. According to Mavundla, as an entrepreneur one is eco-nomically active and is in a position to ab-sorb job seekers as opposed to waiting for a job, which in most instances is not probable.

Mavundla highlights a number of advan-tages of running your own business as op-posed to being employed. He says business people determine their own destiny and in-come, as mentioned earlier create jobs and also maximise benefit. He says this beats being employed because in that instance you work so hard only to make someone else rich. Mavundla says the business sector is crucial as it is the engine of any economy. He says it provides jobs, goods and services to the national fiscus through taxes gener-ated from employment and entrepreneurial activities.

Nafcoc Youth and Women in Business

Nafcoc Youth Treasurer Sbu Mavundla and Nafcoc Deputy Secretary Margaret Bango

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With just over 5000 members and counting, the South African Leisure Tourism and Hos-pitality Association (SALTHA) works tire-lessly to ensure that township businesses are also empowered and reap the benefits of the current tourism boom experienced in South Africa.

SALTHA, which is an affiliate of the Na-tional African Federated Chamber of Com-merce and Industry (NAFCOC), assists its members with various interventions and business skills workshops, which include lessons on Business Administration, Web-site Planning, Tourism Marketing & Legal-ities and Compliance & Licenses for pubs,

among other things. Then known as the National Tavernier’s

Association (NTA), SALTHA was founded in 1978 and in 1982 it secured its first liquor license. Its aim is to lobby Government to recognize Shebeeners as legitimate business, but on the other hand encourages responsible business practices from its members; hence it harbours an aspiration to acquire Trading Licenses for all Taverners.

The association’s mission is to participate in the development of the Tourism sector in South Africa, contributing to development of the country’s economy through creation of employment and business opportunities, and sustainability in the business enterprise thus promoting Broad Based Black Empow-erment (BBBEE).

The tourism accommodation industry in-cludes lodges, guest houses, hotels, caravan parks and camping sites and is dominated in a monopolistic manner by operators from a minority race, which makes it hard for busi-nesses owned by the majority race to make

a breakthrough in the industry. SALTHA has taken it upon itself to proactively seek to balance the playing field.

Figures released by Statistics South Afri-ca (Stats SA) late last year (2012), showed that the revenue of the tourism accommo-dation industry for the three months which ended July 2012 grew by 11,7% to R2.5 bil-lion when compared with the same period a year prior.

Lodges and self-catering establishments were the main contributors with a 22.3% growth, followed by guesthouses at 17.3% and hotels at 4.6%, but SALTHA’s president, Churchill Mrasi, was not pleased with these figures, stating that the said R2.5 billion growth in the sector for three months which ended in July 2012 compared with the same period the year prior, did not benefit town-ship businesses. Mrasi was further disheart-ened by the fact that black township business did not even form part of the research. He added that inequality is but just one problem the association is faced with, another hur-

dle is the unwillingness of big business to cooperate in changing the status quo; “last year (2012), we launched a black economic empowerment tourism charter, but the docu-ment is sitting idle because there is nothing in it that compels big business to empower small business,” Mrasi said.

With regard to transformation Mrasi ar-gues that industry players are still biased in their efforts to empower their members.

However, it is not all doom gloom as SALTHA, whose vision is to be significantly visible, effective, innovative and hugely suc-cessful, promoting and facilitating the devel-opment of Tourism in South Africa, whilst focusing on the inclusion of the previously disadvantaged communities in the Tourism sector, is pleased to point out that some of its members who are operating at the most famous tourist Vilakazi street are doing well for themselves. The association is deter-mined to replicate this success throughout the country.

SALTHA

The Licensing of Businesses Bill is a poisoned chalice that demands a rethink on the part of government as far as it relates to small business. The legislation defaces and dis-honours the promissory note of our freedom upon which the signatures of our nation’s luminaries such as John Dube, Oliver Tambo, Robert Sobukwe, Steve Biko, Nelson Man-dela and many others appear. The Bill is anti-business, anti-progressive and anti-developmental.Section 2 of the Bill says that the purpose of the Act among

others is to• Promote the right to freedom of trade, occupation and

any rights contained in the constitution.• Promote the development of South African Economy by

providing a standardised regulatory framework within which business licensing would take place.

• To encourage a conducive environment that promotes compliance and sustainability of businesses ;

• Set essential norms and standards applicable nationally, provincially and in municipalities relating to licensing of businesses.

While the purpose of the Act may appear progressive and enlightened on paper, it is our well-considered view that the demands of the legislation will become onerous for small business in that;

1. An application has to be made for licensing and a pre-scribed fee has to be made.6.1 6.1(d)

2. Licensing Authority may extend period of considering the licence 7.1

3. Licence need to be renewed and an application has to be lodged 12.1

4. A renewal fee has to be paid 12.1(e) 5. The license authority may automatically revoke a licence

18.16. The licensing authority may amend the licence on its

own discretion 22.17. No person may carry on business or sell goods as a

hawker without a valid licence issued in respect of that premise or place by the relevant authority 25.1

8. The licensing authority may close down a licensed busi-ness 26.1 & 2

9. The legislation provides for appointment of inspectors 30

10. Inspectors can enter any premises and question anyone 33 (a) ,(b) ,(c)

11. An inspector may remove any goods on the premises and confiscate them 34.1

12. An Inspector may issue an administrative fine 35 (a), (b)The above requirements are onerous and cumbersome

for small business owners. This legislation also gives ex-cess powers to licensing authorities. It should be unequivo-cally said that while the purpose of the legislation, spelled out somewhere in this article, is a noble one, the means of achieving this leaves a lot to be desired. A legal framework that makes citizens slaves to dos and don’ts, and adminis-tered by a few selected individuals with unfettered powers can never be right.

The Negative Effects of the Businesses Licensing Leg-islation1. Hindrance to Business GrowthThis small business people will find themselves swamped

with the demands of this legislation at the expense of running their businesses to the detriment of growing their businesses.

2. Mitigates against government’s deliberate policies on Small Business

Since independence, billions of rand have been ploughed into small business. This is because the successive gov-ernments of the land have rightly concluded that small businesses are a powerful engine for economic growth. The licensing of businesses legislation will destroy the gains of this deliberate policy on encouraging small business participation in the economy. It is a cruel twist to the matter that the Department of Trade and Industry, the same department tasked with promoting trade and in-dustry has unashamedly drawn out its dagger against the very people it has to serve.

3. Destroying the entrepreneurial spirit of South AfricansThis businesses licensing legislation will push out many

aspiring business people from ever attempting ventur-ing into business. Faced with a battery of rules under the legislation, many will conclude that the easy way out is avoiding getting into business. The biggest loser will obviously be the entrepreneurial spirit which has in the past 17 years been the epitome of the new South Africa.

4. Pushing business activity to the shadowsBusiness activity is likely to be banished to the shadows as

small businesses hop away from the cruel hand of the businesses licensing legislation. The America of Prohibi-tion Days did not manage to take out liquor traders from business- it pushed them to the ground, where they con-tinued to serve the liquor needs of Americans in the dark allies and shadows.

5. Violation of the right to be heardIn Section 18.1, the bill calls for an automatic revocation

of a licence, if non-compliance is found and a busi-ness owner can only appeal once the business has been closed. This goes against the iron rock upon which our constitution is founded which regards everyone innocent until found otherwise. The licensing Inspectors become the arresting officer, the prosecutor and the judge!

6. Costs of compliance will affect small business negative-lyCompliances with the Licensing of Businesses legisla-

tion will add more administration costs to the small busi-ness owners. Given the small business margins that small businesses have to survive on because of their bottom po-sition on the distribution queue, saving every possible cent becomes paramount. This legislation will demand funds and time to comply with. This will have negative conse-quences to small business.

Our ProposalAs Nafcoc, we propose that the government look at the

following proposals instead of insisting on the blanket ap-plication of legislation that will inhibit business growth.• We propose that government put a threshold of R5mil-

lion as the starting point for licensing requirements. This means that small businesses those under R5million will be exempted from this onerous legislation

• We also propose that foreign nationals who intend to do business in South Africa, be permitted to do so provided that they do not compete for business opportunities with small businesses under the R5million threshold. This means that they will have invested a minimum of R5mil-lion.

• We also call upon the government to be more vigorous in stamping out the proliferation of fake and imitate goods that compete with locally manufactured goods. More of-ten than not local traders do not have access to foreign supply markets where these goods are produced. This therefore means that small local traders are disadvan-taged. To conclude, the National Development Plan speaks of

a South Africa we want- an enterprising, happy and healthy nation- a proud and self feeding South Africa. The Busi-nesses Licencing Bill is a real hurdle to the South Africa we can be proud of and truth be told, the legislation is a testa-ment of hopelessness and gloom to the millions of enter-prising South Africans. There are many of our countrymen and women in the four corners of the great republic who believe that the freedom to enterprise is the only currency that will buy them a better future.

That this is a watershed moment for South Africa can-not be over emphasized. This nation is involved in a great and supreme venture of rebuilding the shattered walls of its citizen’s hopes, ravaged by centuries of discrimination and racial contempt. We cannot allow Minister Davies to be the hangman of our future. It is most wrong and unjus-tifiable for our government to consign our generation and those to come to the cruel noose of the businesses licens-ing legislation. Future generations will remember us with contempt and ridicule if this legislation sees the day. This government of Zuma, Mohlanthe, Davies, Patel, Ndebele, Manuel, Oliphant, Mapisa-Nqakula and many others has a sacred responsibility to allow our small business people, from all walks of life and creed trade freely. We are indeed perched on a precipice of gigantic proportions and yet we still have a chance to redeem ourselves and march back to the foundation upon which the new South Africa is rooted as enshrined in our constitution. This foundation is FREE-DOM! Freedom to choose, freedom to speak, freedom to be heard, freedom to enterprise and many other freedoms.

The businesses licensing bill is anti freedom. It is a dic-tatorial piece of legislation that cannot be enshrined in our sacred constitution in its present form.

Our view on the proposed Business Licensing Bill

Opinion and Analysis

12

NAFCOC HEAD OFFICE President: Lawrence Bhekinkosi Mavundla Tel: 011 807 5063 / Fax: 011 807 9816 Email: lmavundla@nafcoc.org.za Presidential P.A: zinhlec@nafcoc.org.za 13 Summer Street, Summer place, Rivonia www.nafcoc.org.za GAUTENG Chairperson: Monga Phaladi First Floor, Surrey House 35 Rissik Street Johannesburg Tel: 011 057 7531 / 011 492 003 Email: mongap@nafcocgauteng.org KWAZULU – NATAL Chairperson: Themba Ngcobo 1st Floor, Smart Xchange Building 5 Walnut Street, Durban 4001 Tel: 031 566 6735 / Fax: 086 558 4844 Email: themban@mweb.co.za paulngema@webmail.co.za LIMPOPO Chairperson: Isaac Masekwameng 103 Marshall Street Polokwane Tel: 015 291 1391 Fax: 086 518 5210 Email: info@nafcoclimpopo.org.za WESTERN CAPE Chairperson: Mongezi Memani No. 45 Durban Road, Bellville Cape Town Tel: 021 945 4452 / Fax: 021 945 4452 Email: cmema@gmail.com Oscar.solomona@capetown.gov.za NORTH WEST Chairperson: Joseph Ntokwe 1032 Molusi Street Kenana Township Orkney Tel: 018 462 0293 Fax: 018 476 4318 Email: matsle@lantic.net ntokwegardenservices@yahoo.com FREE STATE Chairperson: Chunukelo J. Konziwe NH 26 Local Municipality Tel: 072 184 0206 Email: cj.konziwe@yahoo.com NAFSEC President: Thandazile Khumalo 13 Summer Street Summer place, Rivonia Tel: 011 807 5063 / 073 992 7291 Fax: 086 659 8384 Email: president@nafsec.org www.nafsec.org NIC President: Steve Skhosana Gate No. 2, Block K Tshwane Events Centre – Pretoria Tel: 012 327 7007 Fax: 086 691 1415 Email: info@nic.org.za www.nic.org.za

ACHIB President: Lawrence Mavundla Platform 19 – Park Station Johannesburg Tel: 011 025 7670 Fax: 011 333 0161 Email: usb@webmail.co.za lmavundla@nafcoc.org.za SALTHA President: Churchill Mrasi 3rd Floor, Surrey House 35 Rissik Street, Johannesburg Tel: 011 070 8034 Fax: 086 537 3239 Email: thabile@saltha.co.za www.saltha.co.za EASTERN CAPE Chairperson: Phumzile Ndendela 13 Webb Street, Southernwood East London Tel: 043 726 7014 Fax: 043 726 7039 Email: nafcocadmin@telkomsa.co.za NAFCOC WOMEN’S CHAMBER President: Ntombentsha Mbethe 13 Summer Street Summer Place, Rivonia Tel: 011 807 5063 / Fax: 011 807 9816 Mobile: 082 660 4342 Email: mbetev@nafcocwomenchamber.org.za www.nafcocwomenchamber.org.za

NAFCOC YOUTH CHAMBER President: Chuma Shweni 1 Summer Place 13 Summer Street, Rivonia Tel: 011 807 5063 Fax: 011 807 9816 Email: chumas@nafcocyouth.org.za www.nafcocyouth.org.za RETAIL President: Isaac Masekwameng 13 Summer Street, Summer Place, Rivonia Tel: 011 807 5063 Fax: 011 807 9816 Email: SAMEC President: Gilbert Mosena 13 Summer Street, Summer Place, Rivonia Tel: 011 807 5063 Fax: 011 807 9816 Email: info@samec.org.za www.samec.org.za NAFCON President: Simon Ramodike 13 Summer Street, Summer Place, Rivonia Tel: 012 664 7099 Fax: 086 657 7194 Mobile: 082 645 3152 Email: simonramodike@yahoo.com www.nafcocconstruction.co.za

NAFTO President: Boetie Letsoela 3rd Floor Newtown Building, President Street Newtown. Johannesburg Tel: 011 039 1156, Fax: 086 572 9271 Email: info@nafto.org.za www.nafto.org.za NAFU President: Motsepe Matlala Tel: 011 807 5063 / Fax: 011 807 9816 Email: info@nafuagribusiness.co.za 13 Summer Street, Summer place, Rivonia www.nafuagribusiness.co.za NOTHERN CAPE Chairperson: George Morudi Tel: 082 380 1839 Email: cgmorudi@mweb.co.za tshadinafcocnc@gmail.com MPUMALANGA Chairperson: Themba Dube (Acting) Office: Kwaggafontein “C” Tel: 013 246 2595 Fax: 013 246 2595 Email: thembadube@gmail.com

CONTACT DETAILS OF NATIONAL STRUCTURES

COSATU President Mr Sidumo Dlamini and Dr Maponya leading the way to SME economic liberation through entrepreneurs NOT tenderpreneuring.

Limpopo NAFCOC roadshow held on the 10 July attended by senior ANC, COSATU, Government leaders as well as SARS, SEFA, IDC and many other depts. This was also attened by municipalities and 300 SMMEs across all sectors of NAFCOC.

Nafcoc and Eastern Cape Delegates at the Jakarta City Chamber in Indonesia

Nafcoc former president Patrice Motseqe with the recent pres-ident Lawrence Mavundla sharing business tips with ordinary Nafcoc members during Nafcoc conference

Nafcoc President Lawrence Mavundla and Premier Kiviet in Indonesia

Lawrence Mavundla and Dr Maponya during Nafcoc AGM/Conference

Nafcoc youth president Chuma Shwemi making a point

Nafcoc Leaders during a Trade mission to China

CONTACT / GALLERY

Mr Lawrence Mavundla elected as Nafcoc President. With him is the Former Nafcoc President and Chairman of ARM Mr Patrice Motsepe and Minister Patel