The SA Blook

8/14/2019 The SA Blook

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THE SABLOOK


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Contents

Introduction.3

1. The New South Africa is it real? ..............................................................62. Is SA rich or poor?......................................................................................83. What the world thinks of South Africa.......................................................124. The importance of each individuals contribution collectively.................185. SA Inc and the business of doing business in SA.....................................226. The beauty and grandeur that surrounds us.............................................267. The importance of technology in SAs global emergence.........................288. Building brand South Africa......................................................................319. Making the most of SAs creative talents and abilities ..............................3510. Innovate for a better South Africa.............................................................3811. The role of the younger generation in SA, and what we need to do to

support them.............................................................................................4112. Connecting South Africa communities that transcend technology.........4313. The role of collaboration in South Africas growth - We are African..........46

Credits.......................................................................................................48Photo credits50

The SA Blook is an OutThink initiative. Its an experiment in online writing, thefirst of its kind globally that we know of a collaborative book written byvarious writers and bloggers, originally published online. The chapters werepublished across the various authors blogs on 2 June 2008. They arereproduced here to provide more widespread access to the contents, so ifyoure reading this for the first time, its worked.

We hope youll enjoy reading the SA blook, and that it will give you somepositive insight into the beautiful country that South Africa is and its amazingpotential.

Please note that each chapter was written by the relevant individual(s) and istheir respective copyright, licensed under a Creative Commons AttributionNon-commercial No-derivatives 2.5 ZA license:


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IntroductionBy Darren Gorton

Welcome to the SA blook, a collaboration between South African bloggers with a

strong belief in the future of our nation. Essentially, it is a book, originally publishedonline and written by a diverse group of writers with strong views about our countryand the reality South Africans find themselves living in.

There are countless books aboutSouth Africas history and how itdeveloped, and there are bound tobe many more. There is also anendless supply of daily news thatreminds us about the real anddifficult challenges that our countryfaces and has yet to overcome.

While most South Africansunderstand and feel the pain of these challenges, we will never be able to moveforward unless we lift our eyes to the horizon and step boldly forward, aiming to builda foundation for a better future for us all. This blook is about South Africa - aconstructive look at our present, our future and the opportunities we have.

While this blook is admittedly an experiment in online writing, this fact should notdetract from the importance of the topic at hand something relevant to all SouthAfricans. Every topic touched upon is intricately linked to South Africas present andfuture, and although we would not like to suggest that our present challenges aresimply remedied by positive thinking, we hope to stimulate strong debate and new

thinking around these topics. By doing so, the writers hope to contribute to a newperspective in this country, knowing that thinking is the precursor to action.

I trust you will enjoy reading this as much as we all enjoyed writing it, and that youllparticipate in a way that is impossible with traditional books by leaving yourcomments, thoughts and ideas on the relevant online chapters as you read them.

Before you go on to read the rest of the blook, I would just like to extend a hugethank you to all the writers who were willing to take part in this blook. They haveinvested valuable time and thinking into this, and for that I am truly grateful!

[I also want to point out that each author is the owner of their respective chapter, soplease do not reproduce, redistribute or alter it in any way without their consent]

South Africa. Actually.

With a GDP (in millions of US dollars) at least 50% higher than any other Africancountry, South Africa is a critical component of the African continent, and possiblyeven a key to economic and social revival in Africa. Yet, in spite of this success, wefind ourselves trailing global leaders by quite a large margin in so many ways.

Its plain for everyone to see that South Africa has a lot of problems, but its important

to remember that we are not alone. Every country has its own struggles, and

This blook is about SouthAfrica - a constructive lookat our present, our futureand the opportunities wehave


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Introduction 4

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We cannot continueto rely on thosethings that we havealways done to takeus where we wantto go

considering where weve come from and the changes that have taken place hereover the past 15 or so years, its not surprising that we find ourselves here.

As far as challenges go, you name it and weve probably had it at some point. Crime,financial crises, unemployment, illiteracy, poverty, droughts and the list goes on.

What surprises me is that we fail to realise that so many [although not all] of theseare merely symptoms of a greater problem rather than the cause itself, and we dontget to the real issues behind the problems we face each day. We often hear theproblem of skills shortages mentioned, but if you ask me, our real problem is not ashortage of skills, but rather a shortage of people who really care! Skills can betaught [over time, I admit]. Caring cannot be taught its a conscious decision eachof us has to make. And its not an easy decision to make either, as evidenced by thefact that so many people find it easier to move to a different country overseas than tochange their attitude and remain here.

It is immensely important that South Africa positions itself to take advantage of the

windows of opportunity that are flying at us at staggering speed, even if we dont yetunderstand exactly what they are. That responsibility cannot be delegated to a selectfew political or business leaders within the country, no matter how capable they maybe. A leaders job is to envision those that they influence. Each of us is a leader insome respect, and we all have a circle of influence, no matter how large or small. It isup to each of us to take responsibility for this if we truly want to build this nation.

South Africa reloaded

So, Leader, let me ask you - is it time for us to reload?

In his State of the Nation address on

8 February 2008, while referring to Eskomsplight at the time, President Thabo Mbeki saidWe are a minerals resource economy. Wemust therefore continue to support the miningindustry. It is inevitable that if we are tocontinue on our growth path as a manufacturingcountry, we will also have to continuesupporting the processing industry.

Theres no denying the importance of resources to South Africa, and indeed toAfrica, but surely there is life after gold? After all, if theres one thing that history has

taught us, it is that stagnation has been the downfall of many an empire both interms of countries and businesses.

We have seen that the success of much of the western world, and the United Statesof America in particular, has been in becoming a post-industrial society, representedby a shift from provision of goods to services and an increased reliance on white-collar as opposed to blue-collar work. Its true that this does not come without its ownproblems, and Im not suggesting this as an end to itself, but rather that we need totake the lessons out of these changes that contributed to those nations economicand social successes and implement them here to the extent they are relevant.

We cannot continue to rely on those things that we have always done to take uswhere we want to go.


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Business Unusual? No, this is not areference to corruption or to accountingscandals. In fact, this is our governmentsapproach to improving the quality of life of

every South African. Surely it also means acommitment to developing our South Africanlevels of creativity and knowledge andtherefore our [potentially highly valuable]intellectual capital?

As I said earlier, perhaps its time for us toreload, in two senses of the meaning:

Reloading often refers to getting afresh supply of ammunition ready foruse in a weapon. Just like a bee

without its sting is harmless, a weaponwithout ammunition is also harmless,and if South Africa is to play asignificant role in the new global community [and economy], we are going toneed some new ammunition, in the form of new ideas, new approaches and astrong emphasis on the importance of creating and increasing the value ofour intangible assets [our intellectual capital] as opposed to our tangibleassets.

Applied to technology, when something is reloaded it generally meansoverwriting what was originally in memory with new information. We have ahistory full of painful lessons, so how do we learn the lessons from this historywithout living and remaining in the past? For if we forget these lessons, we

are no wiser now than we were when we made the mistakes, and if we keepliving in the past, it becomes impossible for us to move into the future.

With the advent of a global technology revolution, we are watching history unfold andrealities change as a global community increasingly becomes a reality.

With this in mind, I trust that this blook will stimulate our approach to handling theseissues, as we learn to better appreciate South Africas amazing opportunities andbetter understand our role in envisioning and creating a planet-rocking, mouth-dropping, awe-inspiring future.

When the opportunities present themselves, let us be ready!


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1. The New South Africa is it real? 7

THE SABLOOK

Is the new South Africa real?

Ignoring the stern directives from our Reserve Bank governor, I often visit thetownship of Klipspruit Extension 5 in Soweto to do my shopping at the new Maponya

Mall. Mr. Richard Maponya, the brainchild behind the grand development,proclaimed that Maponya Mall is the largest shopping centre in South Africa. Thisstatement would have irritated the owners of Gateway Shopping Centre overlookingthe sugarcane plantations of Mount Edgecombe, however, I cant fault the man forhis enthusiasm.

The mall is more than a shopping Mecca for Soweto residents, the development is abeacon of hope for so many entrepreneurs who have never been encouraged toseize the day. Soweto dwellers couldnt have imagined that a development of thismagnitude containing a tenant mix of luxury fashion retailers and youngentrepreneurs selling sishweshwe dresses could be found right at their door step.

As you leave the mall you notice the number offamilies crossing Old Potchefstroom Roadcarrying plastic bags stuffed with groceries fromthe two large supermarkets at the mall. This smallobservation strikes me because I know that priorto Nelson Mandela officially opening the mall onthat cold and miserable afternoon in September2007, Soweto residents had to catch connectingtaxis to the Johannesburg CBD to purchase the bare essentials. They now haveoptometrists, Laundromats and a smorgasbord of banking facilities within walking

distance or at a cost of a local taxi fare.

Service delivery has been a huge challenge for the government of national unity,however, we have acted very miserly when giving airtime for some of theachievements. My small township of KwaDlangezwa in Northern KwaZulu Natal nolonger relies on infrequent patrols by the South African Defence Force military tokeep the criminals at bay. We now have our own police station and a patrol vehiclefor rapid response. I also get the feeling that other township dwellers across thecountry are more at ease with report any transgressions to police within thecommunity.

I envy the young kids growing up in KwaDlangezwa, they have a park with facilitiesthat were foreign when I was growing up. Furthermore, the entire township roadinfrastructure has been tarred and lampposts are now functioning. The extent of theload shedding experienced around the country during January 2008 was paltrycompared to the blackouts that came close to ruining so many weddingspreparations and made sure that candles were a common feature in our home.

The stories of the real South Africa are often not told in the main stream media,however, to many South Africans we have come a long way. There is much work tobe done and I think this country has the men and women to achieve the goals of thenation.

The developmentis a beacon ofhope for so manyentrepreneurs


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2. Is SA rich or poor? 8

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2. Is SA rich or poor?By Geoff Candy and Hilton Tarrant

Are we rich? And could we also be poor?

The answer we would venture is: both.

Indeed the contrasts between the rich and poor elements of South Africa are at theheart of much of the art and conflict that respectively unite and rip apart the country.

So, in what way are we rich?

From a tourism point of view, our country is phenomenally wealthy with every sort ofdestination - barring the polar icecaps - pretty much on our doorstep. We also still

have some of the cheapest land, particularly coastal property, in the world.

In terms of raw natural resources, South Africa is one of the wealthiest nations in theworld. The bushveld igneous complex contains about 90% of the world's knownplatinum reserves, 80% of the manganese, 73% of the chrome, and 45% of thevanadium. The country is also the world's third-largest diamond miner by value, withits annual production of around 15m carats making it the fifth largest.

Gold too is something we are blessed with and, untilvery recently, we were the largest gold producer in theworld (until China took our number 1 spot!)

On the topic of China, both South Africa and the rest ofthe continent have a rich and deepening relationshipwith China - which stands us in good stead as thatcountry continues to grow with its voracious appetite forraw materials.

As a renowned business strategist, and one of only three people to be invited tospeak at the Chinese central party school in the last 50-odd years, Clem Sunter saidof the superpower and South Africa: "They regard us as the leading nation on theircontinent of choice - what they feel is that the West in many ways has forsaken

Africa, and they regard this continent very much as full of opportunities, whereas theWest has seen it a bit as a developmental burden."

Proof of this recently has to be the investment by the Industrial and Commercial Bankof China into Standard Bank which, at R37bn, is the largest investment by a Chinesecompany outside Chinese borders.

The deal has been a massive boost for Standard Bank, who is sitting on a pile ofcash in turbulent markets, when it is a very good thing to have. Some of this cashwon't ever see our shores directly, as Standard Bank has kept most of this moneyoffshore for acquisitions. Profits from those ventures, however, will channel into SA.Indeed South Africa, largely as a result of exchange controls, which limit the ease

Until veryrecently, we

were thelargest goldproducer in theworld


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with which one can transport money in and out of the country, has been only veryslightly affected by all this sub-prime turmoil.

But, as far as the deal is concerned, although it is massive it is hardly surprisingwhen one thinks of the quality of our banking system. While, there are huge parts of

the population that do not even have a bank account - there are projects afoot toincrease that number (the Mzansi account for example). And, although these sorts ofprogrammes take time, in that flurry it is easy to miss the fact that the South Africanbanking system, in Bankserv, has one of the most sophisticated paymentsexchanges in the world.

This could be the reason we pay so much for bank fees but, then again at least thecompetition authorities are looking into that.

The country not only has a very strong banking system, it also has a thriving stockexchange - the largest in Africa and it continues to grow.

Last year there were upwards of 70 new listings on thebourse and retail interest in the market is increasing -although as JSE CEO, Russell Loubser says, thenumber of South Africans with stock broking accountsin their own name is well below 10% of the tax payingpopulation, but adds there is no reason this can't getincreased to 50%. Not to mention, the JSE is also thelargest single-stock futures market in the world if onelooks at it from number of contracts sold.

Indeed many of the country's companies punch wellabove their weight internationally. Both Anglo Americanand BHP Billiton emanate from South Africa in some way or another and they are twoof the four largest diversified mining stocks in the world.

Anglo American is worth $90bn while BHP Billiton's market capitalisation is over$230bn.

Sasol too has done phenomenally well for its self; it has just recently finishedconstruction on its Oryx gas to liquids plant in Qatar and remains at the forefront of

technology to convert coal and gas into liquid fuel.

From humble origins in South Africa 100 years ago, SAB started with a share capitalof 350 000 and 300 000 of debentures it is now a global powerhouse with brewinginterests and distribution agreements in over 60 countries across six continents.SABMiller is worth about $40bn.

MTN has also done amazing things in the telecoms space and has grown rapidlysince it was created. It is currently in the throes of a deal which will see it gainsignificant presence in India.

On this topic, however, is where we start to fall down.


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In the telecommunication space, South Africa is falling behind (quickly) and much ofthat has to do with broadband access.

Our access to international bandwidth (until very recently) has been monopolised(through Telkom's restrictive ownership of the SAT-3 undersea cable which links us

to the world). Our mobile charges are also high when compared to the rest of theworld, but thankfully certain positive strides are being taken in this space (like thelaunch of second fixed-line operator Neotel and new undersea cable Seacom).

Power is also a problem but, while it feels as though we have been battling loadshedding for eons, until the recent short-sightedness and poor management - SouthAfrica had more energy than it knew what to do with - so much so that it was actuallyclosing power stations. In fact, the utility is still in the top 20 in terms of size andproduces almost 40 000MW of power.

The load shedding has, however, made the lives of South Africans much poorer and,

what is worse is that while many have recently felt the frustration of no power, evenmore people are yet to experience electricity in any form at all.

The lack of secure power has affectedbusiness a great deal and growth hasslowed dramatically in the last quarter asa result of it but an R300bn improvementand build programme is underway at last.

All that said, the perception internationallyat the moment is one of disbelief at thelack of thinking that went into creating this crisis and has done our internationalimage no good.

Nor has our drop in the ratings about the ease with which companies can dobusiness in our country.

Every year, the World Bank publishes the Doing Business Report, which looks at theregulations various countries impose on businesses that make doing business moredifficult. In 2006, South Africa ranked 28th in the world, a respectable showing. Weslipped to 29th in 2007, and in the latest rankings, for 2008, we are down to 35.

While South Africa has not necessarily been moving backwards in terms of the easeof doing business in our country, other countries have been reforming rapidly asglobalisation becomes an ever-more present reality.

The World Economic Forum's (WEF) Global Competitive Index shows a fall for SouthAfrica from 36th position in 2006 to 44th position in 2007, while the InternationalInstitute for Management Development's World Competitiveness Yearbook for 2007highlights South Africa's 12-place fall from grace. It has dropped 50th position in aranking of 55 countries.

As Sunter writes, "So why, according to these surveys, has South Africa slippedalmost to the bottom of the 'Premier League' - into the so-called 'Relegation Zone'?

The perceptioninternationally is one ofdisbelief at the lack ofthinking that went intocreating this crisis


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Maybe, it has to do with the haemorrhaging 'brain drain' and the increasing shortageof skills. Maybe, it is our rising cost base. Maybe, we haven't matched theproductivity gains obtained by the countries in the ascendant. Maybe, the overseasperception of political risk in South Africa has changed for the worse. Whatever thecauses, there's no denying that we are in danger of losing our 'Premier League'status along with all the perks that go with it (like a seat on the UN Security Council,being seen as the leading voice in Africa and being considered a partner of choice byChina)."

Crime too plays its role with the recent xenophobia' attacks not helping our cause -especially when we are so desperately in need of foreign skills to help us return tohigher growth levels and reach our 6% growth target by 2010.

Ad van Wijk, the CEO of Dutch power companyEconcern told Tycoon recently: "If you look, and I aman outsider, so all you see and hear is what is reported

in the news, we see a country that is really not thepoorest, but is underdeveloped. And, there is still a lotof violence and riots and you see a lot of Europeanswho do not think of investing in the country for thatreason."

"I am sure there are very large areas where you will never have these riots or theviolence but the perception is that it is everywhere and that means it will block foreigninvestment that would otherwise have come in."

Of course foreign investment is crucially important at the moment because of another

major poor element of South Africa - our current-account deficit. In simple terms weimport many more goods than we export which means we owe, on a weekly basisupwards of R12bn a week to pay for this difference. And, we get that through peopleinvesting in our country, buying our stocks and land, and looking to start businesseshere.

But, if we do not create an environment that international businesses want to cometo, they will go elsewhere because, while we are rich in many ways, we are equallypoor in others.

Foreigninvestment is

cruciallyimportant at themoment


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3. What the world thinks of South Africa 12

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3. What the world thinks of South AfricaBy Grant Brewer

Understanding South Africa is a challenge. It is a country full of paradoxes and

extremes. As the setting of one of the most remarkable political transformations inmodern history, it is also home to widespread poverty and mindnumbing violentcrime. We remain trapped by past beliefs in our strengths such as the idea thatSouth Africa is a rich country because of its mineral wealth, or that our extraordinarypolitical transition owes us opportunities in a global economy and we're strugglingto define what exactly we contribute to and how we relate to the world around us.How do all these things come together to forge a nation that can define its ownmeaning for the twenty first century, and in doing so create an emerging land ofopportunity.

Any perspective on South Africa held by someone living outside of South Africa islargely defined by current events as reported by the media. This is especially true as

South Africa is just not as important an emerging market as Brazil, China, India orRussia (the socalled BRIC emerging markets) and therefore doesnt get as muchanalysis.

Sadly, the view of South Africa across the world is often defined by global televisionnews networks. Sadly, because their focus on soundbytes and the fiveminutenews reports often doesnt allow a comprehensive investigation of the details. Andafter the recent xenophobic violence in Gauteng and other parts of the country thathas been flashed across international television screens, it is difficult to think of abroad perspective on how people outside of South Africa think of our country. But letus start at the beginning and not lose sight of many other perspectives that are

relevant.

The home of Nelson Mandela

Although interest is waning, since it is eighteen years since Mr Mandelas long walkto freedom became headline news and fourteen years since South Africa became ademocracy, South Africa has a special place in the world as the home of NelsonMandela, ArchBishop Desmond Tutu, the Truth & Reconciliation Commission, andthe home of one of the most remarkable political transformations in modern history.

As a country youthful in itsdemocracy and living through thegrowing pains of democracy, it iseasy to lose sight of the fact that therelatively peaceful transformationseemed very unlikely back in 1989at a time when communism and theBerlin wall were collapsing. Growingpains are exactly that: a painful butpassing phase, and if one takes abroader perspective some of thefrustrations and issues may bestepping stones to a better future.


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were not as modernised as South Africa is today. The World Cup, despite requiringan enormous investment from government, is a great opportunity to showcase SouthAfrica and leave TV viewers with the understanding that the country is a welldeveloped emerging market and not a backwater at the tip of Africa.

A country struggling to define itselfIn some ways, any perspective on South Africa seems inextricably linked to politicsand the transition to democracy only fourteen years ago. As a young democracy,wrestling with change, South Africa is struggling to find its own place in the world.South Africa is frequently a paradox: sophisticated and developed in one breath, andcrippled by a disastrous government reaction to humanitarian crisis and terrifyingviolence in another.

A rogue democracy

The Washington Post published an article in which it describes South Africa as arogue democracy, suggesting that this new category of state be defined just for

South Africa. The issue is that South Africa has actively blocked United Nationsdiscussions about human rights abuses in Zimbabwe and in Belarus, Cuba, NorthKorea and Uzbekistan. South Africa was the only real democracy to vote against aresolution demanding that the Burmese junta stop ethnic cleansing and free jaileddissident Aung San Suu Kyi.1 Worse, In the General Assembly, South Africa foughtagainst a resolution condemning the use of rape as a weapon of war because theresolution was not sufficiently anti-American2, and this in a country plagued by ahigh incident of rape. These issues extend back over some time and reflect a countrystruggling to understand how it relates to other countries, in and outside of Africa,and the major issues challenging our world today. In the name of perceived idealsmeant to give everyone a fair hearing and justice, South Africa stands in the way ofdecisions that would benefit the oppressed peoples of the developing world.

This foreign policy stance makes understanding South Africa complex. The nextelection will usher in a new administration that needs to define how it will react tothese issues in the future, without giving up on the notable morale high ground whichSouth Africa is attempting to hold following its own transition to democracy. Thecountrys stance mirrors the current Presidents own struggle to define his view ofSouth Africas role in the modern world. Thabo Mbekis bizarre stance on HIV Aidsand the crisis in Zimbabwe, demonstrate at its most destructive, the confusion thecurrent presidency has brought upon our country.

XenophobiaWhen I first started writing this piece, the intention was to focus mostly on positiveperceptions of the country. However, the last few weeks changed that. It would beimpossible to explore what people think of South Africa without considering theimpact of the graphic images of violence, despair and dislocation that flew acrosstelevision screens across the globe. That our governments response wasinadequate goes without saying in all truth, despite initial reservations of some ofthe ideals of the probable next ANC administration, they couldnt have done anyworse. Our president has lost touch with the people (and probably did so a long timeago). For the first time in a long while, I was embarrassed to be South African. It willbe a long and winding road back to credible relations with other African countries.


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Opportunities for Africa finding our place in the world

South Africa has yet to find and define its place in the world. We remain trapped byour past beliefs in our strengths such as the idea that South Africa is a richcountry because of its mineral wealth, or that our extraordinary political transitionowes us opportunities in a global economy and were struggling to define what

exactly we contribute to and how we relate to the world around us.

South Africa needs a sense of purpose. Instead of complaining about the affects ofglobalisation, we need to accept that, like it or not, we are a smaller emerging marketthat needs to find a way to compete with larger emerging markets such as China orIndia or Brazil. It would be pointless to try to go head to head with Chinese low costmanufacturing. That market has gone for South Africa. For example, our textileindustry is unlikely ever to get the benefits of scale and labour flexibility that enablethe Chinese to undercut the price point of manufacturers in South Africa.

Instead, we need to define our own path. We need to define what it is that were

going to excel at. There are examples of South African greatness: from the Rupertfamily, through MTN and SAB Miller, to Mark Shuttleworth. Perhaps we need arallying call to a common purpose: the kind of leadership that JF Kennedydemonstrated in rallying the US in the early sixties through a call to put people on themoon. South Africans should be turning their attention toward the east, to India andChina to uncover opportunities. The secret to many strategy challenges is to define aclear sense of direction that creates meaning and purpose for the people that needto execute the strategy. Hopefully the next administration will learn something fromgeneral organisational strategy.

Nick Binedell from the Gordon Institute for Business

Science (GIBS) once described South Africa as apioneering frontier town. There is a lot of merit inusing this lens, reminiscent of western films, tounderstand opportunity in South Africa in the future.Frontiers are all about enormous opportunities,usually coupled with pretty substantial risk. Fortune,in a frontier, will favour the brave. Frontiers are also

full of unlucky people and missed opportunities; frontiers people just dont let theseinevitable failures weigh them down. Perhaps South Africans need to learn how tobe proud, how to love their whole country (not just parts of it) and to see theopportunities for what they are: unique opportunities for contribute to thedevelopment of a country, its people and themselves.

Education that gets people engaged into the economy is the key to the future

South Africa certainly needs to realise that it can be a more prosperous andinfluential country because of the strength of its people. But we underestimate theaffect of apartheid on the skills, confidence & capabilities of South Africans. Thismeans that we should have a far more dramatic focus on education of all levels,especially in the sciences. Raising the capabilities of our people is a non-negotiablerequirement.


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The question of what these people should do, even if (or when) educatedimmediately arises? The challenge for South Africa is engage more of its people intothe economy and into life. We cant possibly continue in the future with so manypeople in the country literally excluded from life by poverty and unemployment. Thereprobably isnt a short term fix and any change starting with education, poverty reliefand some of kind of public works program will only have an affect across generationsand not over a few years.

Pragmatically, we should accept that the next administration that takes office afterthe general election next April will result in bigger government. The newadministration will be seeking more direct involvement in the development of thecountry. Before we shout that idea down, we should recognise that the socalledeastern tiger economies largely benefited (and many still do) from a benevolentautocratic state.

Capitalising on natural resources

The impact of South Africas mineral resource riches on the economy has beendiminishing for some time, and certainly the economy has grown far beyond mining(or agriculture) alone. However, there is a global commodity boom at the moment,led by the demand for natural resources in places such as China. We may not havea backyard full of oil, but the demand for precious metals is going to last for a goodfew years yet and South Africa should be position to take more advantage of it. Inparticular, the country should be exploring how it can support investmentsdownstream to add more value to the minerals before they get exported.

A similar focus could be turned to agriculture. We may not have a perfect climate forall crops, but we do have substantial land mass and a well established agriculture

sector. At the minimum the country should be focused on ensuring it can feed itselffrom its own farming of basic foods. Then there is a global food shortage to takeadvantage of. Streamlining our agricultural sector and the policies that govern it,along with dealing with land distribution issues transparently and rapidly is going tobe necessary. We cant really afford for the agricultural sector to go into a long termdecline. Like the Zimbabwe tobacco industry, our capabilities will fall away veryrapidly if we dont pay attention.

Developing an information economy

If education is sorted out over the next decade, the next generation of students willbe better placed to contribute to the global information economy. Education,

especially in the sciences is the requirement since the information economy doesnthelp poorly educated and largely unemployedpeople. The opportunity is for South Africa tooperate more in software, design, film, businessprocess outsourcing and similar knowledge richservices. If we cant compete with the day tolabour costs of China in manufacturing, thenwell need to leap ahead to the serviceeconomy more dramatically.

Facing up to ourchallenges meansstepping out ofdenial at all levels inour society


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Making the most of the 2010 World Cup

The World Cup is going to put South Africa visually on the television screens ofalmost two thirds of the planet. Despite the costs and the investment required, thecountry has committed and as a result it is an opportunity to show case South Africathat shouldnt be missed. We can demonstrate that were a developed emerging

market. We can show case our vibrant and energetic culture. Most of all we candemonstrate that South Africa can pull off the World Cup and that is can be done inAfrica.

Facing up to the challenges of globalisation

Facing up to our challenges means stepping out of denial at all levels in our society.It means having a government that communicates and shares information, ideas andservices to create a truly citizencentric country that unlocks the human potential ofSouth Africans. Accepting globalisation will mean embracing the opportunities thatglobalisation brings and working with its limitations and frustrations globalisation

isnt going away anytime soon. The world isnt a fair place; large countries are selfinterested, and yes, there is racism and inequality in the constant question ofwhether Africa can normalise its politics and become a more self sustainingeconomically. But the world doesnt owe South African anything. We dont have toagree with these inefficiencies in global economics and politics. It simply means thatwe need to be better at operating in a global economy, where we shape our ownidentity and forge our own destiny.

1. The Depots Democracy by Michael Gerson, Washington Post, 28 May 2008.2. ibid.


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4. The importance of each individuals contribution - collectively 18

THE SABLOOK

4. The importance of each individuals contribution collectively

By Nicholas Haralambous

Writing is a passion for me and one that has taken me to heights that I havent evenbegun to consider. I love it. I love it almost as much as I love South Africa. Howeverthat love is not always present and accounted for. Yes there are things that I amunhappy with and yes I have considered leaving SA because I can. But I am notleaving because I truly believe that my attempts to better the place that I call myhome are making a difference.

South Africans exist, we live, we love, weare passionate and we thrive where otherswould probably not. But sometimescontributing to this state and nation is a very

difficult task. Sometimes enough can beenough, with the traffic, with the crime, withthe absolute rubbish that we all have to putup with sometimes (the recent xenophobicattacks to name a recent incident).

But sometimes these things are tiny littleblessings in disguise. And sometimes simply existing is not enough.

The Individual

Every human being has the desire ingrained within them to do two things:

To LiveTo Procreate

Obviously this is very base and simplified. There are, and have been proven to be,other desires but for the purposes of this piece let us speak of two for now.

When I speak of living I do not mean comfortably or successfully. I mean to literallystay alive. Death is of no practical assistance to anyone in anyones life.

Procreation is important for obvious reasons that I wont delve in to. But whenchildren are placed in to the equation as a focus then things change and optionsbecome more limited. Bear with me. Imagine you cannot afford to fend for youchildren, to keep them alive - breaking the first basic human instinct - then you beginto fight for your life and the lives of your offspring. This is where I believe that manySouth Africans are right now. Poverty rates are high in SA, employment is low, andeducating the masses is not happening and is thus leaving those with jobsunsatisfied and relatively poor anyways.

The point here is that when your basic human rights are infringed upon the individualcan be forced to react in any ways possible. This can be violence, innovation,

entrepreneurship, charity or any means that comes to the fore.


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I am an individual acting within a community and making a difference. The only catchis that it is not quick. Nothing that is ever great, long lasting and memorable is everyquick. Change is never quick. Ever. Yet it can be viral. Positivity in SA has gone viral.Individuals who believe in this country have begun to feel confident in this ideal

enough to start spreading the word. It takes on catalyst to throw change in to motion.One person to tell ten, ten to tell ten more, those hundred people to tell just one andthose hundred people to tell two and so on and so on.

The community thrives off the success of the community and the individuals withinthe community.

Two things have come out of the xenophobic attacks. Firstly people have realisedthat life is not all roses for everyone in SA. Secondly people have begun to want tochange, help, aid and be charitable. People have woken up. If anything good hascome out of these attacks it is a greater sense of community that marginalised

people have begun to feel. We have vociferously defied these acts and revoltedagainst them with acts of kindness. The fact that we can stand together whether inthought, action or opinion, against these acts means that there is hope. There ishope if we all believe that right is right and wrong is wrong.

The community is starting to defy these acts of horror, whether 50 people aremurdered or one child is harmed the reaction is beginning to become action, positiveaction.

I am not going to discuss the individuals who leave the community because free will,choice and economic bracket allows these individuals to leave and contribute to

other communities. That is there choice and their right and I applaud them for makingthe hard decision to uproot their lives and move away. It is difficult. But it is nothelping our community practically.

It might be helping our community theoretically and mentally. Negativity within acommunity only breeds negativity and negative action. The opposite also applies.

Positivity breeds positive action.

The Leader

Thabo Mbeki is the perfect living, walking embodiment of the community electing aleader and a leader acting and marginalising him. Mbekis idealisms got in the way.His African Renaissance blurred his vision and in all of that he lost his Africanismand his people. He is now an individual without a community. Mbeki has sodistanced himself from his own community that the community began acting beyondthe power of his government. He is no longer the leader of his community he is nowthe figurehead of a government that does not relate to its community and often doesnot act within the communitys best interest. This invariably leads to the demise ofthe community and that of the country as a whole. All in all, its a bad thing, to put itplainly.


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The Action

Action is the key to the resolution of our problems. Not just any action, positiveaction.

There are many different types of action that form

different value points to the community. Negativeaction has its place. It creates unity and bindspeople together in their misery, sadness anddiscontentment. If people are unified in theirdissatisfaction they rally to find answers andsolutions. Everything takes place can yield positive outcomes. It all depends on themind set that you have while you are experiencing something and the mindset thatyou have when you come out of something. Negative or positive.

The Million Man March is a fantastic example of negativity resulting in a communityof individuals who share the same ideal, coming together in the hope of change.

Change might not be the outcome of the march but hundreds of thousands of peoplecoming together, out of adversity - in this case crime, to stand together and fight fortheir ideal is magnificent.

Now let us hope that one person changes the attitude of another and this mind shiftbegins to spread across the nation. Change begins with one person changing his orher own attitude. Positive action stems from this change.

Action is the keyto the resolutionof our problems


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5. SA Inc and the business of doing business in SA 22

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5. SA Inc and the business of doing business in SABy Paul Jacobson

Ramble on

A complete treatment of this topic would probably take up a number of hefty volumesso this chapter is not intended to cover all aspects of doing business in South Africa.There are many brilliant, knowledgeable and expert writers and professionals inSouth Africa who could speak far more authoritatively on the range of topics that fallunder the general header of SA Inc and the business of doing business in SouthAfrica.

Instead I am going to mention two topics which I am both passionate about, regardas two very hot topics in the near future and which are, themselves, are subjects ofentire books and which SA Business should bear in mind when doing business in

South Africa: privacy and content licensing. These topics are going to be of interestfor those businesses which are interested in or involved in the growing social mediaspace.

While content licensing and privacy are the topics thattend to attract the most attention when I chat to businesspeople about them, freedom of expression and unlawfulcompetition are two topics I wont deal with in thischapter due to space considerations in the context of thisblook as a whole but which are arguably equallyimportant. Which topics are more relevant and thereforeimportant to you may be a matter of perspectivedepending on what your focus may be at a given point intime.

Privacy

Privacy has always been an issue business has had to tackle although not terriblyvigorously. Privacy issues in the workplace have often included personalcommunications and personal relationships in the workplace and have been dealtwith through internal policies on issues ranging from the acceptable use of theorganisations IT infrastructure to policies that deal with the prickly topic of sexualharassment.

The need to give substance to the right to privacy in the Bill of Rights and theincreasing amount of personal information that is becoming available both online andoffline in all spheres (and the growing need to safeguard that potentially sensitiveinformation) have given rise to draft legislation presently doing the rounds in ourlegislature.

This is not a new process and in many ways the draft legislation mirrorsdevelopments abroad, including in the European Union. Without going into thelegislation in much detail (yet another volume in itself), it defines personal informationand through a series of voluntary and mandatory mechanisms it seeks to strike a

balance between the need to safeguard personal information when processed bypublic (for example, government bodies) and private (for example, businesses)

Privacy hasalways beenan issuebusiness hashad to tackle


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bodies, the need to protect and give substance to the right to privacy and the desireto facilitate the appropriate flow of personal information.

I use an extract from the draft legislation in a presentation I give on these topics andin which I highlight some of the examples of personal information. Although few

people can actually read the extract in the slide because the font is so small, thehighlights demonstrate the fairly broad scope of the definition and highlight the needto take a more active interest in how this draft legislation may impact on SouthAfrican businesses.

An unfortunate consequence of a growingcomplexity of issues pertinent to business is that it isnecessary to introduce a range of measures toreduce and manage the risks that accompany thisgrowing complexity. One of these measures, atleast in this context, is a clear privacy policy that

informs both internal stakeholders and customerswhat personal information the company is collectingand how that personal information is being used.

These uses are guided by the draft legislation and it is vital that this information becommunicated to these people.

The draft legislation also envisages imposing a series of obligations on businesses tosecure their stores of personal information and to retain that personal informationsubject to specified guidelines. Add a range of exemptions and prohibitions to themix and businesses are facing a far more complex privacy landscape which needs tobe navigated with considerable care.

Bottom line: things are about to become really interesting in this space.

Content licensing

For the most part Business SA either doesnt think too much about copyright orviews it as a shield to protect it from the horrors that ravage the intellectual propertycountryside that include plagiarists and unimaginative bloggers who are too loosewith the Copy and Paste commands.

Copyright certainly has a valuable place in that intellectual property countryside. Oneof its most important functions is to protect original content and, in the process, itencourages content creators to develop more original content. The difficulty withcopyright is that, as a bundle of exclusive rights, it does not always fit in well with thegrowing social media trend (if you can call it that) and with consumers desires andhabits.

One question I often ask people is how many of them tend to download or copyinteresting content they see on the Web without thinking too much about little thingslike who owns the copyright in that content and whether consuming that content inthat way is consistent with the copyright owners intentions and rights. At the risk ofoversimplifying the issues, people want to go online and freely share what they findwith their friends, family and colleagues. This act of sharing often takes the form of

copied text and images being distributed by email, printed out and passed around oreven incorporated into blogs and other online social media platforms.


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The problem with this tendency, of course, is that many of these uses are forms ofcopyright infringement and while there are a number of exceptions to generalcopyright infringement the exceptions themselves are sometimes not terribly clear orhelpful.

There is an alternative to simply relying on the protections afforded by copyright andits exceptions to copyright infringement. If your goal, as a content creator, is toensure that your content is made available to the biggest audience possible withincertain parameters which may protect your business model, the integrity of yourcontent or ensure that any sharing perpetuates your open access ambitions then youwill be thinking about some form of license for your content. The immediatechallenge is how to properly license your content and make sure that theconsiderations that need to be addressed are, in fact addressed.

One option is to go to an attorney have a custom made license prepared. A license

will grant its user certain rights in the content concerned which, in turn, will enablethe user to make use of the content in a way that would ordinarily be prohibited. Thishas its advantages because you will have a license that does exactly what you wantit to do (that is, permit certain uses and prohibit others). The disadvantages includethe costs involved and the possible inability to understand the terms of the licenseunless you have degrees in Latin and advanced legalese.

The second option will be far more appealing to many contentcreators. Creative Commons licenses are ready made contentlicences that permit a range of uses of content depending on thelicense adopted (there are six core licenses). These licenses are

customisable to a degree in that you can choose which elements toinclude in your license to supplement elements that are built intoevery Creative Commons license, such as the ability to share thecontent privately, the requirement that authors of the content concerned be attributedproperly and the perpetual term of the licenses. The rights granted by a CreativeCommons license may include the ability to create a derivative work of the content(something like a remix of a song, perhaps?), the right to exploit a work commerciallyor perhaps the requirement that adaptations of the content be distributed under asimilar Creative Commons license.

One thing for SA Business to bear in mind, especially in the push to integrate socialmedia into an online presence, is that Creative Commons licenses can be powerfultools which can be used to help spread content as widely as possible. This makes alot of sense where a business has a blog or otherwise publishes its content on theWeb with the intention that it reach as many people as possible. Additional protocolslike the recently introduced CC+ protocol enable businesses to integrate theircommercial licenses into a non-commercial Creative Commons license. One benefitof this is to present a licensed version of the content that can be freely shared whilepreserving a commercial model. A good example of a service that uses a similarmodel is the popular tutorial service, Common Craft.

What I constantly find remarkable about these legal constructs is the very real impactthey can have on creative expression. Although copyright was originally intended to

protect and promote creative expression, it has become almost synonymous withprotectionism and restrictions on content usage. It is unfortunate but it has paved the


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way for tools like Creative Commons licenses and similar free content licenses tofree content creators to express themselves more freely secure in the knowledgethat they have struck a balance between sharing and spreading their ideas andpassions and, at the same time, ensuring that their content is used in a way that bestachieves that expression. Just what form that expression takes and how it manifestswill vary from one content creator to another, whether that content creator be anartist, a writer or Chief Executive blogging about his hopes and dreams for hiscompany.

Levelling off

Without a doubt privacy and content licensing are critical issues that SA Businessneeds to pay careful attention to, especially as more and more local businessesprovide services and publish content online. Two topics I wasnt able to deal with inthis chapter introduce further dimensions of complexity and perhaps greaterchallenges for many businesses: freedom of expression and unlawful competition.

These seemingly unrelated topics come together in a very interesting and yetsomewhat disturbing way for many businesses in the context of social media inparticular and also merit very careful consideration.

One message I try to communicate whenever I speak about these topics is that asmuch as they may complicate an already confusing landscape, the risks theyrepresent can (and should) be managed and, in the process, reduced. Doing sorequires a little research and planning but the benefits of these foundational stepswill soon become apparent in a variety of ways, all of which add to the tremendouspromise and potential of doing business in South Africa.


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6. The beauty and grandeur that surrounds us 26

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6. The beauty and grandeur that surrounds usBy Kerry-Anne Gilowey

No matter their political stance, religion, social class or ethnicity, if there is one thing

that all South Africans will agree on, it is that we surely live in one of the mostdiversely beautiful countries in the world.

Time after time this land has entranced me, thrilled me, charmed me, taken mybreath away and hypnotised me with its beauty. I have been captivated by itscomplexities, and challenged by its rugged landscapes.

Ive walked through vineyards, forests and rosegardens, and Ive driven along undulating roadsbordered by fields of wheat and bright yellow canola.Ive bounded through multi-coloured carpets of wild

flowers in springtime on the West Coast, and Ive hikedmountain paths lined with proteas, ericas andindigenous bulbs.

Ive stood silently on top of Tygerberg Hill, Lions Head and Table Mountain,marvelling at the glory of the city stretched out before me. Ive driven through the oldCiskei at night, stopping to hear the awesome silence and gaze at the shining massof stars in the night-sky.

Ive watched the sun rise over thedistant Boland mountains, with

their outlines crisp and purple andtheir tips covered in snow. Ivewatched the sun set over theocean from Clifton 4th beach, andseen the fire-dancers turn thebeach into a wonderland after dark.

Ive thrown snowballs and madesnowmen in the Ceres mountains,and Ive had my breath whippedaway jumping into the icy waters of the dark and brooding, yet oh-so-beautiful,

Riviersonderend Canyon.

Ive sailed along a rope through the forest canopy in the lush, green Karkloof inKwaZulu-Natal, and Ive jumped from a bridge, watching the dry river-bed of theGouritz River rush up to meet me.

Ive tasted the sweet, delicious, fresh water of a mountain stream in the Cederberg,and the rich, heady wines of Stellenbosch, Franschhoek and Paarl.

I have quivered just a little whilst sitting on a quadbike, watching a female rhinocerosand her calf grazing a mere 5 metres away. I have seen cheetahs, sharks and seals,and Ive held monkeys, fed a baby elephant and played with lion cubs.


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Ive watched the lights of Mossel Bay flicker to life as dusk descends, transformingthe bay into a glittering panorama, welcoming and cosy. I have seen a herd ofwildebeest silhouetted on the crest of a hill, the sun setting behind them, and Ivewatched huge flocks of guinea fowl feeding in my suburban garden each morning.

Ive watched scores of surfers taking on the waves at Victoria Bay and East LondonsNahoon Beach. Ive kayaked along the Touws River in the Wilderness, and Ivepaddled quietly across the tranquil Knysna Lagoon in the late afternoon, the sound ofwaterfowl a perfect accompaniment to the gentle swishing of my oars.

Ive travelled through the arid Karoo on a sweltering hot day, with only sheep andKaroobossies to break up the vast and strangely beautiful semi-desert landscape,and Ive smelt the fresh, cool scent of Knysnas milkwoods in the morning.

I have been on boat trips and helicopter flips, and Ive travelled the Garden Route ona sturdy old steam train, through charming towns and across a shining lagoon.

Ive said Oh wow,, Isnt that awesome?, Look at that!, and I dont have words toexpress how beautiful that is, more times than I can recall.

I have lived in this land all my life. And I haveloved this land for as long. And on a perfectwinters day like today, with blue skies, wispyclouds, crisp air and a crystal-clear mountain infront of me, I have a strong feeling that this loveis not unrequited.


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8. Building brand South Africa 28

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7. The importance of technology in SAs global emergenceBy Justin Hartman

Technology and globalisation go hand-in-hand. Globalisation unleashes technology,

which in turn drives companies to plan production and sales on a global basis.Technology changes the work we do and the jobs created by it demand moreeducation and training. It also changes the way business operates by transformingrelationships between suppliers, producers, retailers and customers.

One aspect of globalisation that tends to be most apparent in almost every facet oflife is the emergence of technology - particularly the way in which technology isglobally integrating people of the world. The advent of the Internet has over the pastdecade provided a common platform upon which countries from all corners of theEarth are able to communicate and share information.

Global Emergence of the Information AgeIn the space of thirty years technology has caused widespread improvements inaccess to information and economic potential.

If you consider that just twenty five years ago the use of personal computers was stilllimited to a fairly small number of technologically advanced people while the majorityof people produced documents with typewriters.

Twenty years ago, large and hefty mobile phones were carried only by a smallnumber of users and some fifteen years ago only limited universities and scientistswere using, or had even heard about, the Internet.

Today however computers, mobiletechnology and the Internet havetransformed communication andcommerce, creating entirely new ways forretailers and their customers to transactand for businesses to manage the flow ofproduction and market their products.

Websites, chat rooms, instant messagingsystems, email, forums and other Internet-based communication systems have made it much easier for people with commoninterests to find each other, exchange information, and collaborate which was almostunheard of until the Information Age.

Technology Transformation in South Africa

With over 30 million subscribers the mobile industry in South Africa is booming.While this industry is largely controlled by the major mobile phone operators, makingentry into the market difficult, almost every South African has access to mobiletechnology.


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Internet adoption in South Africa has been slow off the starting blocks. There aresome 5 million people accessing the Internet everyday and currently we have morethan 1 million broadband subscribers yet these figures represent only a small portionof the population.

One of the primary reasons for the poorrate of adoption of broadband and theInternet, in comparison to the mobileindustry, is the high-costs associated withgoing online. Added to this, South Africahas not had the technology orinfrastructure to facilitate fast adoptionrates and the early adopters have had touncover defects and fund development ofthe technology further.

Fortunately, over the last couple years, companies and local government have beeninvesting heavily in Fibre optics and the infrastructure needed which will not only helpdrive costs down but also increase accessibility and adoption through the use ofthese improved technologies.

Leveraging Technology

Technology facilitates the expansion of products, ideas, and resources amongcountries as well as people regardless of geographic location. Technology can beleveraged to create efficient and effective channels to exchange information and canbe the catalyst for global integration.

The single greatest benefit of technology is its ability to multiply effort. This multiplierof technology turns the effort of one person into many.

Any business can leverage technology to work:

* Faster* Productively* Predictably* Safer* Efficiently

With the advances in technology any business can now do more with less.

Challenges and Successes

As an emerging market South Africa has some fundamental issues affecting globalemergence. Some of these include high-costs, low Internet penetration,unemployment and lack of education, yet despite this advances in technology areproducing many positive changes in our society.

Technology innovations have created new jobs, promoted the growth of new

markets, and increased international trade and investment but one of the biggest

Technology facilitatesthe expansion ofproducts, ideas, andresources amongcountries as well aspeople regardless ofgeographic location


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technology challenges we need to address, which makes us unique to first-worldcountries, is the major divide between mobile and Internet users.

What is evidenced today is that only asmall minority access the Internet while

the majority of the population use theirmobile phones for various tasks yetthere is little to bridge the two userstogether.

The greatest opportunity that exists inour global emergence is the ability to

understand how to use all this technology to our advantage, bridge the gap betweenmobile and Internet users, and in turn solve the various communication andtechnology problems that we are faced with as a developing country.

The greatest opportunitythat exists in our globalemergence is the abilityto understand how touse all this technology toour advantage


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8. Building brand South AfricaBy Melissa Attree

To be successful a brand requires strong leadership, well-defined values and

benefits and a credible communication strategy. Brand evangelists exist and themost well loved brands have become beacons of hope for many. Brand South Africamay not have all of the above but it has the key ingredients for success and anopportunity to create a most believable communication strategy.

All brands experience extreme highs and lows during a typical lifecycle, at its worstthe end result of an extreme low is usually a loss of customer confidence. Yet themost successful brands have demonstrated staying power and an ability to bounceback; theyve regained customer confidence, rebuilt what was lost and in most caseshave surpassed all previous expectations.

South Africa is a brand, a brand that has experienced severe highs and lowsthroughout its history. Over the past few weeks however our most treasured brandhas plummeted to what many would agree is a very severe low. During this criticalrun up to 2010 the current low levels of customer confidence are forcing us to take aproactive look at the future. (In my opinion that is. Some may choose to leave, othersto ignoreI choose to stay and have chosen to take part in the creation of the SABlook - a constructive look at our present, our future and the opportunities that wehave. )

In considering the future and Building BrandSouth Africa I feel its necessary to take a look atsome basic marketing and branding principles toestablish an objective, sensible viewpoint and toencourage a new way of assessing our situation.These concepts also underpin the fact that SouthAfrica is indeed a brand the fact that it may lacka certain tangibility only makes the quest formarketing success more challenging, add to thatthe fact that Brand South Africas customers can

also be viewed as the brand custodians and it becomes slightly complex.

A brands customers (call them consumers or clients if you wish) are its foundation,they are the life-force. A brand is not a fancy corporate identity or cool logo, a brand

is a collection of stories, emotions and experiences as shared by its customers.Customers create brands.

With this in mind we need to acknowledge that the relationship between brands andcustomers has changed. Most marketers would agree that a large part of this shift isattributable to the online developments weve experienced. Think about how e-mailallowed for easier, quicker, safer customer service contact. Fast forward a fewyears and web developments have created social media channels with the ability tofacilitate genuine 2-way conversations between brands and customers.

There can be no doubt that there is a need to re-think old school traditionalmarketing principles. Its likely that the basic 4 Ps of marketing; Product, Price,Place, Promotion will always be relevant, however developments in social media and

South Africa is abrand, a brand thathas experiencedsevere highs andlows throughoutits history


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online customer interaction have introduced new considerations to the way thatbrands and customers interact.

The following two aspects are also important for ongoing branding success;Personalisation (or customisation) as a loyal and valued customer I want exactly

what I like, when I like. Give me the option to get my hands on something unique.For example Amazons personal recommendation based on shopping habits wasprobably one of the first steps towards customer personalisation. Most major sportsshoe manufacturers allow web customers to create their own shoes, Perfume Labdevelops fragrances based on customers preferences, Musicovery plays musicbased on your moods and iGoogle allows you to customise your homepage.

Participation: Ive said before that I believe that any modern branding strategyrequires a transparent non-clingy attitude. Maintain a sense of openness andacknowledge the fact that customers have access to information about your brand,with this in mind involve them in branding decisions do not underestimate the

power of the collective customer, welcome it and handle it as managed disruption.

If we relate the concept of personalisation toSouth Africa one could take thephilosophical view that change and growthis only possible through visualisation andbelief. Perhaps the personalisation eachSouth African seeks is the right to believe inthe South Africa they see in the future thisencourages a sense of belonging andparticipation. I, for example am positive andconfident in Brand South Africas ability tobounce back. As a result I look forward andam committed to a brighter, successful

future. I acknowledge the factors that have damaged our brand equity but I choose tospend my energy on the brighter future that I want to be part of.

In a more obvious way the principle of participation is evident in relation to brandSouth Africa now more than ever. Online developments allow everyone to be apublisher and user-generated content is driving and shaping the World Wide Webnow more than ever. Social media is driven by a collective intelligence or thewisdom of crowds. Wikipedia, Facebook and YouTube are a few of the mostsuccessful websites; they are driven by the people for the people.

Brand South Africa is currently experiencing a crisis. Customer confidence is at an alltime low, investors are pulling out, tourism is suffering, residents are leaving andtheres a pervasive sense of anger and uncertainty. Amid this despair however thereis a growing sense of pride, optimism and a determined will to succeed. In particularthe current xenophobia crisis has driven the online community to group together inan attempt to restore a sense of normality and dignity. The power of the collectivecustomer is evident and their energy is being channelled through specific onlinevehicles. This basic principle of social media marketing gives people a place to voicetheir opinions and show their support.

Internet marketing company Quirk created the United for Africa portal that usesGoogle Earth and Google Maps to monitor the wave of xenophobic violence that has


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swept the country, incidents are reported and mapped in real time on the site, aFacebook page also supports the portal.

In another effort to provide real time information local blog aggregator Afrigatorcreated a South African xenophobia crisis page that aggregates everything that is

being said about the crisis in South Africa. Pages are split up into Blog posts, newscoverage, podcasts and Videos uploaded to YouTube. These initiatives give SouthAfricans (the customer) a place to share their opinion and collectively exchangeideas and ways of combating the atrocities and negativity that threaten to destroy thefuture of the South African brand.

What would a typical brand custodian or guardian do in times of trouble? Anysuccessful brand manager believes in their product or service, at times this may betested but there is a sense of determination and realistic optimism that prevails.When crisis hits, many business and marketing leaders will go back to the basicsand construct a plan of action.

Brand South Africa

There will always be questions about our brands leadership but as loyal customersand part custodians we have an individual responsibility to commit to the success ofbrand South Africa.

The primary objective is to rebuild the loss of confidence amongst variousstakeholder groups; success here will renew the collective faith and energy toachieve future targets (2010, Gautrain etc.)

Go back to the basics; consider a basic Strengths Weaknesses, Opportunities andThreats (SWOT) analysis If I consider the natural beauty of our country, ourcollective strength of character, the determination of our people, our history, ourbrilliant business acumen, our diversity, our wildlife, our talent, our climate vs. thewell publicised evils and threats, my grid still looks fairly achievable. In dark times itseasier to forget the positives and the reasons you choose to support a certain brandin the first place.

Harness the collective energy of positiveSouth Africans use the brand evangelists tospeak the message and spread the word. Thesame principles apply; no one is reallyconvinced or even interested in what themarketing manager has to say, they want tohear the brand values and benefits fromsomeone just like me, the most trustedspokesperson.

Acknowledge that the bad / challenges /weaknesses exist but make a concerted collective effort to fight them. For years themost famous brands have battled against economic, distribution, sales andproduction factors, in the same way Brand South Africa is facing some severeissues, the difference is that these challenges are fuelled by extreme emotions.

Ultimate success forBrand South Africa is

possible through theharnessing ofcollective positiveenergy a realisticoptimism


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My belief is that ultimate success for Brand South Africa is possible through theharnessing of collective positive energy. Its not a rose-tinted, blinkered approach buta realistic optimism; acknowledge that negative forces that have destroyed a largepercentage of our brand equity but choose to focus on the future and theopportunities that exist.

If you have chosen to reside here then you should act as a responsible customer andcustodian of Brand South Africa, we all have some level of duty or commitment to thebrands future. Allow me the opportunity to be openly positive and give me a forum inwhich to do that. It starts on an individual level share good news stories, choose tointeract with positive, optimistic people, fill your head with uplifting information.

Believe in the brand. Perhaps we should take a lesson from the marketing textbooksthat document the rebirth of some of the worlds best-known brands. At such anemotionally charged time it may be necessary to introduce a degree of objectivity inorder to instil a collective sense of purpose and determination for a more secure,

successful future. From a textbook marketing point of view our brand is down but byno means out. Go back to the basics, assess the factors, adjust the strategy and pickthe right vehicles to spread and celebrate the successes.


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9. Making the most of SAs creative talents and abilities 35

THE SABLOOK

9. Making the most of SAs creative talents and abilitiesBy Eve Dmochowska

The greatest resource possessed by a nation is the imagination of its people

It is no secret that South Africa has high levels of unemployment, severe poverty andlack of adequate education. These shortcomings are even more evident in our ruralareas. And yet, and maybe because of the extra burden of hardships that those wholive outside our main hubs have to bear, they have proven themselves to beincredibly creative, passionate and dedicated to their self-honed craft.

But that, unfortunately, is where their skills end. To be able tomarket themselves as a destination, or to sell their goodsthrough retailers on the domestic or international market wouldtake resources to which most rural crafters just do not have

access. Their unfamiliarity with the business environment, andlimited ability to communicate professionally with distant targetmarkets hampers their chance of maintaining a decent livingfrom the proceeds of their work.

That is unfortunate. Craft has low entry requirements in terms of capital and skill,since it draws on the cultural heritage of the people. Most crafters are women. Craftis the only feasible option to introduce themselves to the economy. They supportlarge families, both immediate and distant. They are good, sometimes even brilliant,at what they create with their hands and the raw materials at their disposals. Theirgoods would have place of pride in the homes of the relatively wealthy foreignerswho are so into the green sustainability trend that has taken the world by storm.The crafters, with their skill, are fully equipped to provide the first part of the produce- sell - sustain equation.

Now we have to figure out how to do the rest.

Luckily, we do not have to start from scratch. There are strong initiatives that aim tobridge the gap. There are government sponsored programs that introduce businesstraining, and help market the crafters to tourists. There are organizations set up byindividuals who run non profit projects to uplift the disadvantaged. And markets arespringing up in urban hubs that sell the wares to both South Africans and the tourists

who visit our country.

Monkeybiz Bead Project is a case in point. It sells R5 million worth of beaded craftsto the international market each year. Founded as a non-profit in 2000, the initiativenow allows 450 crafters to sustain themselves and their family, doing what they dobest. The reason it works is because it had a great start from the three founders whoidentified a collective talent in a community, and matched it to a demand in theoverseas market. Now, each crafter is essentially self employed: she makes beadedcrafts that are unique, and sells them to the non-profit. The goods are thendistributed internationally through a well honed network, and the profits are drivenback to the community, which is affected by HIV.


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On my bookshelf I have a gem of a book, Due-South which is an Eskom sponsoredTravel Guide to South African Craft Sites. Throughout its 400-odd beautifully laidout pages, it introduces the reader to the direct sources of the most creative, originaland simply beautiful craft work the country has to offer. Designed as a travel guide,the book encourages both tourists and locals to get into their car and explore thecountry, and support the talent.

Here are some typical quotes from the book:

Hlamarisa Bvuma Beads: Hlamarisa is a renowned Tsonga beader andtogether with her four grandchildren she works to revive the style andtechnique used by traditional Tsonga beaders.

Emma Gule at Rheolas Country Collection: Emma is a multi-talented, self-taught beader who produces beautiful items from beads and copper wire. Sheuses her skills in design and colour to create attractive crocheted jewellery,accessories, Christmas decorations and bags.

So we are not ignorant to the need of helping ourlocal crafters. But, of course, we can do more. Forstarters, we can work on the perception of whatAfrican Craft really is. It is not limited, as some mightthink, the displays of wooden masks and beadeddoilies as exhibited in front of the Zoo. To drawattention to the fact that the products produced inSouth Africa are far more diverse than that, it hasbeen suggested that they be sorted into fivecategories: home ware and dcor; garden and

outdoor; jewellery and fashion accessories; craft andfolk art (usually culturally specific) and souvenirs.Suddenly, the marketing scope seems filled withmany more possibilities.

In 2001, government introduced the idea of setting up a Craft Trading House thatwould provide a one stop opportunity for buyers to view the South African craftproducts, and to manage the ordering and finance aspects of the trade. Although thishas not yet been established, in principle it sounds like an ideal opportunity to bridgethe gap between the products and the markets.

My money, however, is on the entrepreneurial spirit of those who can act as middlemen between the crafters and the markets. Nothing, it seems, is a bigger motivatorthan money, and I am hoping that individuals who have the right connections, goodbusiness ethics and business acumen, will be able to utilize them for the benefit ofall. The biggest obstacle, after all, is that most goods that are produced in rural areaswill never receive the worthy audience that they deserve. Anyone who can bridgethat gap manually can be forgiven for taking a profit out of the process. Altruism isgreat, but we need to pump exposure, even if for a price.

And the potential is great. Africa, as a continent, exports only 0.4% of the worlds$424.4 billion creative products! (According to the United Nations Conference on

Trade and Development (Unctad), 2005). And we probably have the richestcollective skill level and cultural heritage to drive the exports. As the director of Inter-


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region Economic Network, James Shikwati said: The creative economy can serveas the most strategic launching pad of competitiveness because culture is uniquewith a given people.

I have, I must admit, a somewhat biased

opinion on the matter. Although my day isspent bridging the gap between the offlineand online world for corporates and start ups,my family, starting with my father as afounder, has owned an art focused businessfor over 25 years. It is therefore a naturalprogression for me to try and bridge theoffline and online world in the craft / artmarket too. After all, there are plenty ofpotential customers who might never visit ourcountry, but who would love to own a bit ofAfrican culture and heritage. And wouldnt it

be wonderful if there could be an e-commerce enabled website that offered the smallcrafter, living in the middle of a remote farm, the opportunity to sell her goods topeople with whom she could never otherwise interact? There isnt one yet, but Imworking on it ;-)

We might not have the solutions to all the challenges faced by the craft industry inSouth Africa, but we should know this: It is worth our while to give it our full support,not only because it adds economic growth, creates an uplifted and cohesivecommunity and is a natural stepping stone to further skill acquisition, but because itrepresents and preserves our countrys rich cultural heritage.

The biggest obstacle,after all, is that mostgoods that areproduced in ruralareas will neverreceive the worthyaudience that theydeserve


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10. Innovate for a better South AfricaBy Duncan Drennan

So what is our reality?

South Africa has an unemployment rate of about 23%, a skills shortage crisis, risinginflation, rising interest rates, a large current account deficit and an uncertain politicalenvironment amongst a number of other things.

All of this points towards a great need, and with great need, comes a greatcrisis...just not the one you are thinking about. The great crisis we have is a crisis ofopportunity. Wherever there is need, there is opportunity.

In this midst of this great opportunity the challenge that we face is f inding people whoare ready to create solutions. We must find and create people who are willing to

innovate each day.

We are all innovators and have the ability to contribute to the creation of a bettercountry. Unfortunately we tend to associate "innovation" with technologicalimprovements, while it should really apply to every task that we do. Innovation needsto become a concept which permeates how we do business, and how we go aboutour jobs each day.

The other problem is that we tend to think of innovation aslarge leaps forward. Personally I prefer the Japaneseconcept of Kaizen, which means continuous change forthe better (Mind of the Innovator is worth a read). So whenI use the word innovate, I mean keep changing things for the better.

On its own, technical advances will only change South Africa a small amount. Weneed innovation to happen on all fronts legal, government, business but mostimportantly we need it to happen at a people level. We need to find ways to keepchanging ourselves for the better, and with that the rest will come easily.

So how do we as businesses and individuals work towards a better South Africa?

1. People matterOur country, and our businesses run on people. The more we place value on eachindividual, the more value we build for ourselves. It is time to stop thinking about"human resources" and start thinking about people. People matter, and what theycare about matters too. We are connected to the people around us. Acting in theinterest of those around us serves not only to build a better country, but also tonurture and secure our own future.

What is

your reality?


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2. Engage in the discussion

We all need to engage in the discussion that is going on around us and try tocontribute positively to it. Talking builds community and that forms the foundation fora better country. It helps us find out what matters to other people, and how we canhelp.

I have been fortunate enough to be a part of an amazing online business community,The Forum SA, which has brought various business owners and managers togetherto engage with each other. Together we help each other with the daily challenges ofrunning a business. It also provides a platform for us to work together as a group toimprove conditions for small business owners in South Africa. Together we create abetter country.

The more we take part, the more we grow. Maybe it is time to grow together.

3. Be remarkable: make and do things that matter

Jim Collin's wrote, "Good is the enemy of great." Or in SethGodin's words, be remarkable.

As a whole we have given up our greatness. We have lost oursense of greatness to crime, dirty politicians and corruptbusinessmen. Yet as a country we are filled with greatness,even if we are not always able to recognise it.

What and how we do things changes our view of bothourselves and the people around us. Do your actions reflect

who you want to become? Do they reflect the country youwant to live in? Do they build your (our) greatness, or break itdown?

What comes out of us, both in actions and words, reflects not only who we are, butwho we are becoming. What steps did you take on the road to greatness today? Weneed to walk that path one step at a time.

4. Do more with less

Right now we can all feel the pressures of inflation. There are two basic ways tocombat inflation consume less, or produce more. If we can do both at the same

time it is a double win. Innovation can h

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