A NATIONAL AFRICAN FEDERATED CHAMBER OF COMMERCE AND INDUSTRY STAKEHOLDER PUBLICATION

Issue3, Volume 1 - 2013

A LEADING VOICE OF BUSINESS IN SOUTH AFRICA

Open Letter by Nafcoc President
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National Small Business Trade Centre in Pretoria

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Nafcoc Introduces a new membership database system

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Nafcoc Launches R1Bn Fund with Government and Fabcos.

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.

SEE STORY ON PAGE 2

Our view on the proposed Business Licensing Bill

Nafcoc President Lawrence Mavundla

SEE FULL VIEW ON PAGE 10

NEWS
Editorial Comment
This 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 Nafcocs investment company, Silver Vanity Group Holdings (Private) Limited. The February 2013 Judge Monamas Judgement which Rev Holgwane and his Nafhold led group has overwhelmingly published in the media does not validate the meeting held on 6 December 2012 and the resolutions passed thereat. 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 including 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 Nkabinde, 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 other 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 attend to the matter with urgency. As Nafcoc, we have repeatedly 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 Nafcoc, 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 countrys 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 raging storm of court cases brought about by individuals who purport to hold the mantle of leadership of this august federation called Nafcoc. To our leaders, from us at the Khwebo we say keep up with the good work. We are behind you. 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) 807-6644 Fax: (011) 807-9816 e-mail: innocent@nafcoc.org.za Website: www.nafcoc.org.za

afcoc 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 Development, Mr Ebrahim Patel at the Nafcoc 48th Annual Conference on 23 November 2013. Government is represented in the fund through the Small

Nafcoc Launches R1Bn Fund with Government and Fabcos

Finance Enterprise Finance Agency (SEFA). The Launch of this event was nationally televised on the ETV Sunrise programme and was attended by many dignitaries from the public and private sector. The launch was also attended by a delegation from the Indonesian Ministry of Co-operatives and SMMEs led by their minister Dr. Syarifuddin Hasan and his deputy. The sNF Fund is currently wrapping up the regulatory and management processes of its operations before 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 president Mr Steve Sikhosana is the Nafcoc Trustee in the Fund together with SEFA Chief Executive, Mr Thakhani Makhuva and Fabcos Deputy President Mt Phillip Usiba. See Minister Patels Remarks on the launch of the sNF Enterprise Development Trust Fund on Page 2

Address by Minister of Economic Development, Ebrahim Patel, to NAFCOC Conference, 23 November 2012.
a new Board to ensure proper governance 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 financed 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-enterprises. It will also continue to offer a guarantee scheme for large commercial banks who lend to small businesses. One of the new products is a joint Fund between SEFA, NAFCOC and FABCOS, which will be launched today. The Fund will have an initial capital of R120m, with SEFA contributing 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 economic 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 Economic Development Department has also launched a partnership with the South African Institute of Chartered Accountants, SAICA, to train 100 young people in financial skills and place them in small companies or in a business hub that will assist small, blackowned 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 company has been mandated to make up to R240 million available to support

Minister of Economic Development, Ebrahim Patel

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 colleague, His Excellency Syrif Hassan, Minister of Cooperatives and Small and Medium Enterprises from Indonesia and his Deputy Minister Dr Djamhari. Small businesses are vital to job creation. Many of you are running your own taxi companies, spaza shops, hair salons or small-scale businesses. You bring your energy, your ideas and your passion to provide services or goods to consumers. Your Conference is an opportunity to network, to learn from best practice, to celebrate your successes. For this reason, we want to deepen the relationship between Nafcoc and government. We have a delegation of government representatives at your Conference, including E Cape Economic Development MEC Jonas. Two years ago, government adopted 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 ensure we meet the needs of our people. Our goal is to industrialise the economy, through the growth of manufacturing, mining and agricultural activities. 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 globalised 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 experience of their members. We met small enterprises who were successful as well as those which struggled to survive. 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 available 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 concerns. The Chairperson, Sizeka Rensburg 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

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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local, particularly small suppliers. Government has launched support for the green economy. This embraces all the activities that reduce the impact of carbon emissions on the environment. It includes activities as different as installing a solar water heater, to expanding the public transport system, to repairing environmental 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 transport, 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 pipeline. 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 sectors of the economy! The production of clothing, electronic goods, parts for cars, food and beverages, furniture and school stationery, are all examples of what smaller companies 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 establishments. You need to be in all the jobs drivers of the New Growth Path, creating wealth, expanding the economy. This is Africas moment and Africas challenge. To industrialise. 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 relationship 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

Dutch settlers in the Cape. Later, political prisoners were banished to our part of the world. Today we have two democratic 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 private 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.

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

Nafcoc Unveils a me paying now Healthcare Payment Gateway as part of its multi- billion BBBEEE programme
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 provider 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 Schemes manual payments to a me paying now real-time payment gateway. The Medicard is generally accepted everywhere where the Visa cards are accepted. It is important for cardholders, upon successfully swiping and paying for services rendered, to immediately inform the Scheme of the ensuing claim for reimbursement and each claim form must contain the Member number; the Scheme name; the Benefit option; Surname and initials; the Patients name and Beneficiary code as it appears on the Scheme member card; the name and valid practice number of the service provider; the date of service; the nature and cost of treatment; the pre-authorisation number, 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 payment slip highlight clearly the receipt from the healthcare service providers payments. Who qualifies? Every South African currently covered by any approved and recognised Medical Aid Scheme or Health Insurance Plan can open up a Medicard Bank Account which he/she can utilised to pay for doctors, co-payments, deductibles, prescription drugs and pertinent health costs. In essence, this gateway is a unique SWITCH spanning the ability to effect transactions within the National Payment Platform 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 industry and technological advancements. This Gateway is the only cost-effective and safe payment solution available in the marketplace and provides a faster alternative says Twala.

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

he 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 Mavundla and his executive. Dr Maponya expressed his wish to work with Nafcoc and other key stakeholders to lobby government to introduce entrepreneurial education in schools as part of Nafcocs 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 promote 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 has unveiled a unique, me paying now healthcare payment gateway for members currently covered by approved and recognised Medical Aid Schemes or Health Insurance Plans in South Africa. When the current national executive of the National African Chamber of Commerce and Industry (NAFCOC) was elected in 2009, it was given a mandate to come up with a turnaround strategy to take the organisation to greater heights. The NAFCOC leadership under president Mr. Lawrence Mavundla is determined to see the organisation take such strategic challenges seriously. As part of this turnaround strategy, the executive acquired a majority stake in Medicard Investments (Pty) Ltd. This acquisition was done through NAFCOCs new investment arm, Silver Vanity Group Holdings. Medicard Investments has successfully introduced into the Medical Scheme Industry a VISA sponsored payment SWITCH which harmoniously enables the nations payment system to effect Medical Schemes related payments at the time services are provide rather than weeks later. Mr Mavundla, in an interview, said that NAFCOCs vision for this technological 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 infrastructure and building capacity, the chambers nine provincial and 11 sector 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 companys CEO Mr. Friedman Twala set the record straight. i. He clarified that the Medicard Payment Gateway is neither a Med-

ical Aid Scheme nor a substitute for Health Insurance. It is rather a Healthcare 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 prepaid transacting card which operated under supervision by a bank. Twala added that traditionally, the bottleneck in the healthcare payment process is at doctors offices where insured patients who received care dont 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 problem 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 eventually 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 youve used the minibar or charged anything to the room. Similarly, a doctors 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 doctors office. We aim to reduces the cumbersome and unnecessary paper-based processing methods which are time consuming and expensive, elaborated 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

NEWS

Nafcoc and Indonesia agree to establish the National Small Business Trade Centre in Pretoria targeting R4b per annum
Nafcoc has agreed with Indonesia to establish the National 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 Indonesian Trade Promotion centre, led by the Indonesian Economic Counsellor at the Indonesian Embassy, Mr Berlian 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 Sikhosana 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 embarked with the Eastern Cape government.

Premier Noxolo Kiviet praises Nafcoc for its role in Enterprise Development initiatives in SA
Eastern Cape premier Ms Noxolo Kiviet praised Nafcoc for its sterling role in enterprise 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 support small businesses in our country. The ANC realised from the outset that small businesses are a vital mechanism of addressing unemployment, poverty and underdevelopment. The Premier also thanked Nafcoc for playing a positive role in governments quest in building international cooperation by inviting the Indonesian Minister of Co-operatives and SMMEs , Dr. Syarifuddin Hasan who attended the Nafcoc Conference with a delegation of 12 that included his Deputy. Some excerpts of Premier Noxolo Kiviet Speech below I am also delighted that in our endeavours 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 Development in Indonesia. We must intensify our collaboration and partnerships with NAFCOC at all levels, which have been very progressive thus far. As a province we are proud of the footprint we are making in terms of providing development finance, business infrastructure 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 Development 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 projects with growing pockets of excellence in District Municipalities and in the Province. One of our highlights is our collaboration with NAFCOC to execute the Buy Eastern Cape Campaign as well as Local Business Service Centres

Premier Noxolo Kiviet and Dr Hasan

Nafcoc join hands with other global business chambers in PEERS Project
Nafcoc has been chosen amongst many NGOs in the country to be part of the Partnerships for Empowered Entrepreneurs 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 entrepreneurship 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 identity, Triass 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

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 entrepreneurs and act on impediments and structural barriers to successful entrepreneurship in South Africa. To achieve this objective, the project will focus on internal capacity-building of the partners secretariat and local chambers, the provision of integrated quality services to the members, and the improvement of the lobby and advocacy capacities at central and local level.

UPCOMING EVENTS
Training: Competitive Edge and Manufacturing Supplier Development training Date: July 2013 Venue: Contact Person:Rosina Moutlana Tel: 011 807 5063(Nafcoc National Office) Nafcoc Annual Conference 2013 Date: November 2013 Venue: Indaba: Venue: Date: Stakeholder & Membership Indaba Tshwane Show Grounds in Pretoria 30 July 2013 Road shows: Road shows to all provinces in partnership with government departments and parastatals Date: September to November 2013

To be confirmed

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Open Letter by Nafcoc President
Nafcoc. The next paragraphs seek to clarify 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 providers was wrongly published by NAFHOLD 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 members, stakeholders and service providers that the NAFCOC executive committees application for leave to appeal against the judgment of the Honourable Mr Justice Monama was dismissed, in an attempt to legitimise NAFHOLDs Rev Hlongwanes 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 NAFCOCs affiliated sector members according to NAFCOC records since his retirement. On 6 December 2012, persons purporting to be members of the council of NAFCOC of which they are not, held an invalid meeting which was not attended by any of NAFCOCs seeting and legitimate council members. The meeting purported to remove 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 legal 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 matter in January 2013. NAFCOC returned to court in January 2013 in order to declare the meeting of no force and effect; however Judge Monama refused the application on the basis that the interim order had rendered 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 Monamas judgment and, on 21 May 2013, Judge Monama dismissed the application. NAFCOC and the executive committee as well as the seating council have now petitioned the Supreme Court of Appeal for leave to appeal. NAFCOC and the executive committee of NAFCOC are confident that the prospects of succeeding in the appeal are very good. Judge Monamas 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 President of NAFCOC and Sonyosi Stephens Skhosana, Teme Emmanuel Letsoela, Sekwamo Gilbert Mosena, Churchill Mrasi, Zandile Nkabinde, Margaret Bango, Harold 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 current leaders of NAFCOC. On 15 November 2011, a meeting was called and held at which resolutions were purportedly passed removing the current members of the executive committee from office and appointing 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

Nafcoc President Lawrence Mavundla

here are several reports which we believe have been maliciously 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 misappropriation 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 newspaper reports did not give you the accurate facts on the matter and therefore it is our responsibility as the legitimate Nafcoc leadership 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 Mavundlas 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

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 NAFCOC and its members. NAFHOLD holds substantial assets and is controlled by Mr Leaf and Rev Hlongwane. Notwithstanding the function and purpose of NAFHOLD and that it has always 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 NAFHOLD 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 continue 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 people who have no clue about hidden activities 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 continue 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 unconstitutional way of usurping leadership.

FROM THE SECRETARY GENERALS OFFICE -FEEDBACK ON NOVEMBER 2012 CONFERENCE

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 Lawrence 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 sectors 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 important 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 president 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 progressive organisations of Nafcocs calibre. Therefore, the five year tenure of the Mavundla leadership effectively commenced from November 2012 and will end in November 2017. The Conference further resolved that in order to effectively implement industry based chambers, there was a need to adopt the recommendations and resolutions of the 2012 Council Summit which among others included the adoption of the Constitutions 4th amendments, whose emphasis was the industry sector 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 governments focus on industrialisation particularly among SMMEs and the beneficiation of minerals resources. It was also the Conferences resolution that Nafcoc support the governments review of the relevant legislation of black economic empowerment to be more radical in addressing the inequalities of the past. We have also managed to create relationships with different provincial governments 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 successfully launched the sNF Enterprise Development Fund together with FABCOS and the Small Enterprise Finance Agency (SEFA). We have visited many countries and have made numerous business opportunities for our members. We are working tirelessly at ensuring that NAFCOC is in papers for the right reasons.

Nafcoc Secretary General Gilbert Mosena

here are currently over twenty affiliated 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-

NEWS
Nafcoc 2012 Indonesia Trade Mission
Nafcoc Leadership at the Pan African Parliament Building with Indonesia visitors

rom 13 to 25 October 2012, Nafcoc 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 Indonesias march from an average economy to an economy commanding a frontline seat in the South East Asian region.

Aims and Objectives of the Mission To introduce and foster Parallel Economy programmes of Nafcoc To foster trade between business and government To expose leadership to economic climate 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 Indonesias SMME industry. Of the countrys 53million businesses, 99% are SMMEs. Learn about the countrys 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 structures 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 support To promote Nafcoc members business

Expose delegates to the intricacies on International 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 colleagues from Indonesia and other countries. Provide a platform upon which delegates could negotiate and sign up for business deals Observations Made I. The government views SMMEs as an enI. The government views SMMEs as an engine for economic growth and supports them with programmes aimed at nurturing their growth. II. The legislation pertaining to trading is friendly such that there is freedom to enterprise 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 undivided attention. IV. There is a strong working relationship between government and the chamber of commerce based on respect and co-operation V. Most companies produce for export/ technology development and coordination. VI. Working from home/ home industries encouraged. VII. Indonesia has a robust production sector which manufactures many goods as opposed to South Africas focus on consumption 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 tolerance and respect for one another. X. Indonesians work long hours and they seem to reap the benefits of such a work ethic.

Nafcoc Returns to Indonesia with the Eastern Cape Government: 10-15 March 2013
Eastern Cape provincial government, one of the country provinces with a well laid out co-operatives agenda. Job Creation Indonesia, in comparison to its population of 245milion people, has a very low unemployment 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 Indonesias job creation initiatives will be an eye opener. SMME Development Indonesia appears to have a very committed and objective SMME development policy further enhanced by a ministry committed to Co-operatives and SMMEs. Of the countrys 53million businesses, 99% are SMMEs contributing just over 50 % to the country GDP. Agriculture Indonesia has a robust agricultural sector which plays a very significant role of feeding its quarter of a billion citizens. Some of its key produce include, rice, cassava (manioc), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggs. Small to Medium Scale Industrialization Indonesias small to medium scale factories are at the cutting edge of industrialization as the produce significant products into the market for domestic and external consumption. Thus the country provides an important platform of information on how to develop small to medium scale industrialists into important players of the economy.

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

Further to this Mission, Nafcoc went on a weeklong joint trade mission to Indonesia with the Eastern Cape provincial government 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 delegation of 15 including MEC for Economic Development Mcebisi Jonasi and MEC of Agriculture Mrs Rosemary Capa. Nafcocs delegation was led by the National President, Mr Lawrence Mavundla whose delegation included the, Black Business Council President Mr Ndaba Ntsele, Nafcoc Deputy President Mr Stephen Sikhosana and Nafcoc Secretary General Mr Gilbert Mosena. The delegation scored major victories as it signed major trade and co-operation agreements with different departments and organisations in Indonesia. This Trade mission sought to consummate discussions and MoUs signed by Nafcoc in 2012 and to expose the government of Eastern Cape to areas that Nafcoc thought needed joint focus between business and government. These areas include;

Co-operatives Indonesia boosts of a very respectable Co-operatives 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 Nafcocs 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. Indonesias second biggest bank , BRI Bank is a co-operative bank. Bank Rakyat Indonesia or PT. Bank Rakyat Indonesia (Persero) (BRI), translated. Peoples Bank of Indonesia, specialises in small scale savings and microfinance style borrowing from and lending to its approximately 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 consummate this relationship together with the

Indonesian Ambassador , President Mavundla & Nafcoc Leaders

Nafcoc introduces a new database system for its Members

Nafcoc membership administrators from all Nafcoc provinces and sectors converged at Nafcoc Head Office from all the four corners of South Africa for a two day intensive training programme from the 24th-25th May 2013. These administrators were being trained on Nafcocs newly acquired database management system known as the CMMS (Client Membership Management System). CMMS allows Nafcoc and Sector database administrators to communicate with Head Office in real time. It also provides the organisation updated statistics as regards the numbers of members falling within a certain category- nationally, provincially or even at Sector level. Speaking at the Launch of the Training programme, Nafcoc President, Mr Lawrence Mavundla had this to say ; People like you are at the frontlines of the Information 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. Organisations ignore information at their own peril. This is because an organisation with information about different facets of its being is able to make timely and important decisions 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 republic. An intimate knowledge of our members 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 manage 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 Letsoela, Nafcoc Secretary General and Treasurer General respectively also attended the training programme launch and encouraged trainees to do their work diligently as they were the custodians membership information. It was all smiles on the 25th of May 2013 when the trainees where awarded Certificates of Competency by the Nafcoc Secretary 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.

NEWS

Training programme in process

Some of the members who attended the tarining

SG handing over certificates to members who attended the programme

Nafcoc Eastern Cape takes its government to Indonesia

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

Further to hosting the 2012 Annual Nafcoc Conference that saw thousands of government and businesses decisions makers congregating at the East London International Conference Centre, In East London, the Eastern Cape Nafcoc Province has continued 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 chairmanship 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 members of the province previously represented their Province in the Nafcoc 2012 Indonesia 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 government 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 Jonasi and MEC of Agriculture Mrs Rosemary Zoleka Capa. Speaking of this trip, just before his departure, an upbeat Ndendela had this to say, This is a new page in the business-government 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 government and business to say to each other you are a worth partner in our countrys quest to meet with its economic destiny.

Nafcoc Secretary General Mr SG Mosena , speaking about the Pan African Parliament building which Nafcoc owns through its investment 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.

Nafcoc Houses Africa Under One Roof

NEWS

He appealed to government, especially Minister of Public Works , Mr Thulas Nxesi, who also attended the 48th Conference in East London in November 2012 to consider NAFCOC in the leasing business of government departments. Nafcoc is busy signing options with various properties owners, some still accommodating government departments but lack empowerment contents.

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

SALTHA members making a difference on Vilakazi Street

hoever 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 Sowetos 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 slithering, beautiful creatures for R10. Vilakazi Street is known of being a cultural melting pot, offering everything from indigenous food to African music and dance performances and the opportunity to have ones portrait sketched at a street-corner studio. And the experience is not complete without a visit to Mamfisos Snake Show. Her five snakes, Pikinini, Landi, Pepsi, Cola, and Deon, have become members of the Mngomezulu family. The reptiles live comfortably in their glass cages in the Mgomezulus 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 promote their Snakes business..

Mrs Mngomezulu and her daughter

KZN Council Meeting 2013

The 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 treasurer 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 president Mr S Skhosana set to make understood by sector members, who form part of the federation. Sector members wanted to understand what the situation is with the federation 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 individual 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 Skhosana, Government will not talk business with someone who is not in a sector. The KZN NAFCOC was tasked with ensuring that its sectors are alive and kicking. Skhosana said he expects all 10 sectors 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 reason 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 document as it is amended from time to time. Mrasi further explained that a constitution does not change because of amendments.

NEWS
NAFCOC Gauteng Report back on Activities for the Year So Far
As a business support organisation with its heart firmly set on economically liberating the African business soul by balancing the playing field, National African Federal Chamber of Commerce and Industry (NAFOC) remains steadfast in its efforts to draw the black majority into participating in mainstream economic activity and decision-making. With continual engagement with the government and private business, the organisation 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 provincial offices of Gauteng, Eastern Cape and Western Cape. In Gauteng, a partnership between South African Leisure Tourism and Hospitality Association (SALTHA) and Liquor Traders Associations has been established wherein liquor 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 members to help optimise their chances of success in the ventures they embark on. The NAFCOC Gauteng Skills Academy addresses 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 mentoring, 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 assisted mainly in the matters of compliance, company registrations, legal issues, accounting and bookkeeping, among others. Funding has remained the biggest challenge 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 impacted the implementation of programmes as initially planned. The province, however, plans to develop more economy driving programmes through the inclusion of the small business sector and by reviving the reputation of the organisation through actions and execution, following a a little less conversation, 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 turnaround 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 Cape

In partnership with the construction sector NAFCON and the provincial MEC for Human Settlements, NAFCOC Western Cape has donated 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 Khayamandi area and Mosselbay in the Metro and Edens region. It is the partnerships intention to allow the sector to build more housing units for the vulnerable members of our society. During the annual Business Meets Cabinet 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 management and operational capacity. This is over and above NAFCOCs involvement in the Business Western Cape structure which consists of five chambers. Internal challenges with regard to leadership are acknowledged by the provincial office and it pledges to rise above these and move the organisation forward.

Western Cape Chairperson Mongezi Memani

Nafcoc plans R16bn Midrand complex

According to Mr Lawrence Mavundla, president of the National Federated Chamber of Commerce & Industry (Nafcoc), consultations with stakeholders from all over Africa are underway for a landmark Parliamentary precinct for Africa. Silver Vanity Group Holdings, an investment consortium of Nafcoc the oldest and largest African Chamber of Commerce is set to start construction this year. Nafcoc was recently visited by officials from Indonesias 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 Asias 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 Holdings 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 consultations 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, presently owns the Pan African Parliament building. The building houses the Parliamentary chamber and administrative offices of all the African member states of the Pan African Parliament. The building project aims to provide a precinct which will have a hotel, offices, banks, hospital, shops and apartments for the Pan Africa Parliament members 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 Africa through the Department of International Co-operation.

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NEWS
Women are shaking up the construction scene in the Eastern Cape
NAFCOCs female members in the construction sector are given a helping hand by the Department of Human Settlement; each member has been allocated 20 low cost houses to build. Also on track is another transaction aimed at involving more women owned businesses in the construction and manufacturing of protective clothing in East London. The provincial office is hard at work facilitating the opening of the traditional herbs farm and seedling in Grahamstown, wherein the suitable farm for this operation has been identified 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 Department 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 Municipality in Grahamstown which took place during the month of January, the training of Coordinators and SMMEs Assistants conducted by Transformation Africa held in East London in February, and the CIDB workshop 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 infrastructure development in the province is one major challenge faced by the provincial office; the concern is that strong poverty alleviation strategies are not embraced to address the needs of SMMEs in line with government sectors. Vast inequalities continue to exist as emerging SMMEs do not have a privilege of being granted projects without competing with well-established and white male dominated businesses. Strengthening business unity in the province is one of the main aims of the NAFCOC Eastern Cape, and the provincial office continues to engage government to intervene where there are disputes. With the understanding that cash-flow is the livewire of any business, particularly SMMEs, the organisation 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 SMMEs development and it must be incorporated within government programmes.

Nafcoc Youth and Women in Business

of Nafcoc is a woman in business. She runs her own company which she describes as an investment and women empowerment vehicle. Bangos 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 constantly evolving industry, application of new technology and cash flow amongst others. Mavundla and Bango say despite challenges 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 advanceNafcoc Youth Treasurer Sbu Mavundla and ment of its members businesses. He advises Nafcoc Deputy Secretary Margaret Bango business people to be members of sectors and be affiliated to federations especially With Statistics South Africas quarterly la- Nafcoc because of the way it is structured. bour force survey revealing that the number Mavundla further explains that Nafcoc is a of unemployed people has increased by 100 sectorial federation with structures he says 000, to 4.6 million between the fourth quar- are better placed to deal with the needs of ter of 2012 and the first quarter of 2013 it its sectorial members also giving them secis evident that the South African business tor specific solutions. Bango says Nafcoc is sector has its work cut out for it, if it is so also a well-recognised and respected federasalvage the economy of this country. We tion adding that being a member of a sector spoke to two people who lead the youth and which is affiliated to Nafcoc makes running women in business at NAFCOC to under- your own business slightly easier. When starting a business, one of the main stand more about what it is that they do as well as the challenges they face in business. purposes is to make profit, but it does take This in an attempt to get more of the youth time for a business to firstly break even, and women interested in creating jobs rath- and then start generating profit. Mavundla er than seeking jobs, especially during these says it took his business 18 months to break even adding that they are only anticipating hard economic times. We spoke to NAFCOCs youth lead- profitability in the current financial year. er Sbu Mavundla, who is the director of a Mavundla says their expectations may have Marketing and Communications company been unrealistic in the beginning adding called Rodinite Holding Company. The that they have since realised that they are to company has been running for two years meaningfully participate in the Nafcoc strucnow, although Mavundla has been in busi- tures for them to get the full benefit of being ness for 7 years. We also spoke to Margaret a member. He explains that being affiliated Bango who is the Deputy Secretary General 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 country. 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 unfortunate that after close to a decade of the countrys democratic dispensation, there are still these glaring realities. He adds that it will take a collective effort to redress these historic 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 business 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 venture 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 economically active and is in a position to absorb job seekers as opposed to waiting for a job, which in most instances is not probable. Mavundla highlights a number of advantages of running your own business as opposed to being employed. He says business people determine their own destiny and income, 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 generated from employment and entrepreneurial activities.

NEWS
SALTHA

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Opinion and Analysis

With just over 5000 members and counting, the South African Leisure Tourism and Hospitality Association (SALTHA) works tirelessly 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 National African Federated Chamber of Commerce and Industry (NAFCOC), assists its members with various interventions and business skills workshops, which include lessons on Business Administration, Website Planning, Tourism Marketing & Legalities and Compliance & Licenses for pubs,

among other things. Then known as the National Taverniers 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 associations mission is to participate in the development of the Tourism sector in South Africa, contributing to development of the countrys economy through creation of employment and business opportunities, and sustainability in the business enterprise thus promoting Broad Based Black Empowerment (BBBEE). The tourism accommodation industry includes 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 businesses 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 Africa (Stats SA) late last year (2012), showed that the revenue of the tourism accommodation industry for the three months which ended July 2012 grew by 11,7% to R2.5 billion 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 SALTHAs 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 township businesses. Mrasi was further disheartened 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 document is sitting idle because there is nothing in it that compels big business to empower small business, Mrasi said. With regard to transformation Mrasi argues 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 successful, promoting and facilitating the development 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 determined to replicate this success throughout the country.

Our view on the proposed Business Licensing Bill

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 dishonours the promissory note of our freedom upon which the signatures of our nations luminaries such as John Dube, Oliver Tambo, Robert Sobukwe, Steve Biko, Nelson Mandela 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 prescribed 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 18.1 6. The licensing authority may amend the licence on its own discretion 22.1 7. 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 business 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 excess powers to licensing authorities. It should be unequivocally 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 donts, and administered by a few selected individuals with unfettered powers can never be right. The Negative Effects of the Businesses Licensing Legislation 1. Hindrance to Business Growth This 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 governments deliberate policies on Small Business Since independence, billions of rand have been ploughed into small business. This is because the successive governments 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 industry has unashamedly drawn out its dagger against the very people it has to serve. 3. Destroying the entrepreneurial spirit of South Africans This businesses licensing legislation will push out many aspiring business people from ever attempting venturing 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 shadows Business 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 Prohibition Days did not manage to take out liquor traders from business- it pushed them to the ground, where they continued to serve the liquor needs of Americans in the dark allies and shadows. 5. Violation of the right to be heard In Section 18.1, the bill calls for an automatic revocation of a licence, if non-compliance is found and a business 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 negatively Compliances with the Licensing of Businesses legislation will add more administration costs to the small business owners. Given the small business margins that small businesses have to survive on because of their bottom position on the distribution queue, saving every possible cent becomes paramount. This legislation will demand funds and time to comply with. This will have negative consequences to small business. Our Proposal As Nafcoc, we propose that the government look at the following proposals instead of insisting on the blanket application of legislation that will inhibit business growth. We propose that government put a threshold of R5million 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 R5million. 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 often 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 disadvantaged. 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 Businesses Licencing Bill is a real hurdle to the South Africa we can be proud of and truth be told, the legislation is a testament of hopelessness and gloom to the millions of enterprising 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 cannot be over emphasized. This nation is involved in a great and supreme venture of rebuilding the shattered walls of its citizens 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 unjustifiable for our government to consign our generation and those to come to the cruel noose of the businesses licensing 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 FREEDOM! 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 dictatorial piece of legislation that cannot be enshrined in our sacred constitution in its present form.

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CONTACT DETAILS OF NATIONAL STRUCTURES

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 WOMENS 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

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

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

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 President Lawrence Mavundla and Premier Kiviet in Indonesia

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

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

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