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South African Business 2019 edition

  • Text
  • Infrastructure
  • Africa
  • Banking
  • Engineering
  • Construction
  • Trade
  • Economy
  • Zones
  • Energy
  • Investment
  • Invest
  • Business
  • Africa
  • African
  • Sector
  • Economic
  • Industrial
  • Mining
  • Logistics
  • Projects
The 2019 edition of South African Business is the seventh edition of this annual guide to business and investment in South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as Special Economic Zones and African trade provide unique insights, together with comprehensive overviews of critical economic sectors. Other special features focus on the exciting new possibilities in renewable energy, airports as engines of regional growth and the maritime sector as an entirely new prospect for South African entrepreneurs and businesses. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed at www.globalafricanetwork.com

OVERVIEW ICT Incentives

OVERVIEW ICT Incentives are encouraging investment. Companies and educational bodies in the ICT sector can apply for incentives from the National Department of Trade and Industry (dti). These include: • The Technology and Human Resources for Industry Programme (THRIP): companies and educational institutions working to improve technology; 50/50 cost sharing grant to a maximum of R8-million • Technology Development Fund: the Technology Innovation Agency makes up to R50-million available for up to 10 years • Technology Venture Capital: managed by the Industrial Development Corporation; commercialisation of innovative products, processes and technologies. Liquid Telecom paid R6.5-billion in 2017 to buy South African network operator Neotel. Liquid Telecom is part of the Econet group. Royal Bafokeng Holdings will take up a 30% shareholding in Neotel as part of the deal. The transaction significantly expands the reach of the fibre network which, it is claimed, will be Africa’s largest broadband network. Twelve countries are currently connected by 40 000km of fibre network, with more expansion part of the business plan. The Information Technology Association (ITA) is the trade and employer body of the Information Technology industry in South Africa. The ITA represents more than 200 companies which SECTOR INSIGHT Fibre is being rolled out in some low-income areas. • Neotel has changed hands for R6.5-billion. supply information technology equipment, systems, software and services. Members include IBM, Microsoft SA, Siemens, SAP and Axiz. A new technology venture was launched when Cape Town hosted AfricArena 2017, a conference that aimed to be a “bridge between international technology stalwarts and African technology innovators”. A collaboration between Silicon Cape and La French Tech Cape Town, it brought together investors, SOUTH AFRICAN BUSINESS 2019 124

OVERVIEW venture capitalists, start-ups and entrepreneurs. The French government has officially designated the city as one of six global French Tech Hubs. Other hubs include Tokyo and San Francisco. French Tech Labs was launched as a fintech incubator in 2016. The same company earlier established Methys Labs. The new incubator offers mentoring support for innovators, connections to possible investors and a chance for selected candidates to travel to France. Major banks are feeling pressure from new companies who can connect with customers without having to build bricks-and-mortar infrastructure. They are responding by spending heavily on ICT. One example is Barclays Africa Group’s expenditure of R3.1-billion on ICT in 2016. The Big Four banks spent R30-billion in the year to June 2016, with Standard Bank laying out R14-billion in that period (Tech Central). They are also investing in innovation. Barclays Bank have invested in a fintech incubator in Cape Town, Rise. There are six other Rise sites around the world, including New York and Mumbai. The Cape Innovation and Technology Initiative (CiTi) is another support system for the ICT sector. There are 2 000 ICT firms in the Western Cape and they have 17 000 employees. South Africa’s appetite for fast Internet connectivity is growing. The state-owned company Telkom controls most of the country’s fibre cable but several smaller private companies are winning contracts to lay fibre optic cables around the country. Wider access Allowing access to the Internet to rural people and poorer people in urban areas is a policy priority. As part of its mandate, the Independent Communications Authority of South Africa (ICASA) has organised that private operators have connected more than 623 schools around the country. Dark Fibre Africa, a Remgro subsidiary, has established a Digital Villages unit to roll out fibre in lowincome areas. Another company in which Remgro has a stake, Vumatel, plans to offer uncapped broadband services in Alexandra (Johannesburg) for less than R100 per month. Marketing and delivering solutions As a professional distribution company, Kemtek is gratified to be entrusted with the channel responsibility for many of the world’s leading brands. Presently, Kemtek focuses on the following industry sectors: • Printing – digital and conventional • 3D Printing – manufacturing, medical, dental, jewellery and automotive​ • Auto identification and barcoding systems • Labelling – home, office and industrial systems. Kemtek’s marketing approach is based on developing a detailed understanding of the markets served and the needs of the end user. The aim is to marry the technologies and solutions provided by the principal brands to these needs, creating value on a sustainable basis. A cornerstone of Kemtek’s success is ongoing technical support and after-sales service, which all employees are passionate about providing. At Kemtek, there is a commitment to investing in leading systems to enhance the channel and distribution efficiencies, whether this be CRM and sales, procurement planning, inventory management, warehouse management and logistics. The specialised distribution division operates in excess of 25 delivery vehicles nationwide, performing approximately 15 000 deliveries per year from five dedicated sales and distribution sites nationwide. Delivery services are also extended by the use of most major courier companies for the retail chains and outer-lying regions. 125 SOUTH AFRICAN BUSINESS 2019

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