The Bank Sector Education and Training Authority (BANKSETA) has awarded bursaries worth millions of Rands to deserving UKZN students since 2019. Students who benefitted recently are in the School of Accounting, Economics and Finance (SAEF) at the College of Law and Management Studies under the Dean and Head of School, Professor Mabutho Sibanda. BANKSETA promotes transformation and skills development for individuals in the banking sector which is essential for the creation of prosperity generally. The Authority donated R8,4 million towards the development of 111 SAEF postgraduate students in 2019 while this year it has awarded bursaries worth more than R3 million to SAEF and School of Education candidates. The awards make a significant difference to the life of each recipient while also helping to uplift their families and communities. BANKSETA bursary holders thanked the Authority for its support. Fourth-year Finance student Ms Juhi Bhaan was financially dependent on her single mother, proving to be stressful. ‘BANKSETA funding was such a relief for me and my mum – it lifted a weight off our shoulders. I am very thankful and will forever remember this support and contribution towards my education and personal development,’ she said. Postgraduate Diploma in Accounting candidate Mr Okuhle Dlame said high travel costs had been among several challenges he faced. ‘Another huge concern for me was whether my mum would be able to pay my tuition fees in time for me to receive my final results. BANKSETA has covered all my expenses including tuition fees, transport and even data enabling me to attend online lectures. Thank you BANKSETA for improving my financial knowledge through informative webinars and for making my dream of being a Chartered Accountant a step closer to coming true.’ The cooperation and generous support provided to UKZN and its students by BANKSETA are highly appreciated.

Building a brand takes effort and a deep understanding of your values and customers. In my latest article, I share practical insights on creating a brand that resonates and grows. From understanding your customers’ values to crafting a consistent experience. What is a brand, have you built your business into one, why does it matter, how do you do it? Building a brand is a process that takes time, effort, and a clear understanding of what you want your brand to represent. It all starts with your first engagement in the market, whether through a product or a person. This initial engagement ignites the first transaction, which provides you with valuable insights into the market and helps you learn about yourself in relation to what you are doing. As you continue to engage with customers, pay attention to those who come back for more and whom you enjoy serving. Double down on them as an affinity for the customers that matter is as important as an affinity for the product. Take the time to understand the values of the customers you enjoy serving and what matters most to them beyond transactions. Building relationships and getting the voice of the customer can help you tailor your brand to meet their needs. Your brand’s personality should match the values of the customers you enjoy serving. This alignment of values and value helps build trust, which is crucial in establishing a brand. Define the experience you want your customers, employees, suppliers, and the media to have in relation to this brand personality. Avoid the trap of trying to be everything to everyone, as this leads to a lack of focus and can dilute your brand. Craft an experience that can be reliably, predictably, and consistently delivered without you. Unless you create a relatable and repeatable experience that can scale, you cannot grow, and you cannot build momentum behind the brand. Recruit a team that transcends the functional activity you are trying to fill. Look for people who match the activities of the job that needs to be done, and then focus on values. An excellent team can help you scale your brand and provide the experience you want your customers to have. And then invest in your brand. If it’s a secret, and nobody knows about it, where is its value? Make sure people know about your brand by investing in marketing, advertising, and other promotional efforts. Finally, it’s essential to live and lead your brand. You are the custodian of your brand, and it’s up to you to ensure that your team understands the values and personality that your brand represents. As you live your brand, you’ll attract the right customers, employees, and suppliers, which will help you continue to grow and build momentum behind your brand. Building a brand is a journey, but by focusing on your customers, their values, and creating a consistent experience, you can build a brand that lasts. It’s up to you to invest in your brand, recruit the right team, and live and lead your brand to success. For more information contact Johan Taljaard T: +27 (0)31 880 2244 E: johan@aurik.co.za W: www.aurik.com

The winter solstice has past and we can again look forward to longer hours of sunshine (and shorter nights). In addition, this point on the solar calendar provides a good opportunity to set some intentions for the next half of the year. Many of the articles in this edition of Business Sense should provide some motivation to make some changes. On the front cover is Innovate Durban CEO, Aurelia Albert. By supporting and nurturing local talent, Albert aims to position Durban and the KZN region as leaders of innovation in South Africa. Page 3 In addition, says Liesel Kassier of TWIMS, to remain operational and resilient, businesses must find innovative solutions to ride out the loadshedding storm. Page 9. The KwaZulu-Natal Industrial Technology Exhibition (KITE), being held at the Durban Exhibition Centre between 18 and 20 July 2023, is an interactive hub for attendees to increase their knowledge and understanding of current industrial technology trends and legislation. Page 6. The importance of building a brand is unpacked by Aurik CEO, Pavlo Phitidis, who asks, “What is brand? Have you built your business into one, why does it matter, how do you do it?” Page 4. For those business owners, who among other needs, want to increase their brand’s visibility, Marlene Powell provides a solution for business owner through the C.A.R.E. ecosystem. Page 5. Jacquie Bhana will assist in helping her clients to confidently move forward, unencumbered by any feeling of being fake. Page 8. One of the highlights of the annual Standard Bank KZN Top Business Awards is the public competition to see who will win the much-desired accolade of being the top brand in the province. Page 7 . The BPO (Business Process Outsourcing) industry, led by Nutun, specialists in digital business services, has stepped forward as the shining star of realising the potential for South Africa’s unemployed. Page 10. Formulate a policy in the workplace governing sick leave for employees and give guidance to employees on what activities are acceptable, explains Johan van Deventer. Page 4. What better way to honour Youth Day than to inspire South Africans with moving accounts of today’s brave youngsters. Page 12. And world over, the term sustainability has become a buzzword, an ideal to focus on, and a positive step forward for business, our economy, and the greater good of mankind. Page 16. So get moving and we look forward to hearing of your successes.

World Oceans Day (8 June) was commemorated by the inaugural Ocean Festival on the KZN South Coast from 8 to 11 June. Forming part of the Ocean Festival programme was an ocean-themed mural crafted by renowned local artist, Giffy Duminy – with empowering partner Apex Environmental - which has brightened up the bridge to Premier Resort Cutty Sark in Scottburgh, the location for the festival. Commenting on the mural, Giffy said: “I have been very inspired by the many good people in KZN conservation for what they do to protect our local environment from modern threats. The Ocean Festival is a really great initiative that celebrates the ocean over World Oceans Day, it serves to remind us why it’s important to connect with the ocean to save it. This mural features some of my favourite marine life and celebrates the shallow reefs close to Scottburgh, inspired by the Marine Protected Area of Aliwal Shoal where I have been lucky to enjoy some incredible dives. We have such incredible biodiversity in our part of the world, and it is most definitely worth celebrating. I hope my mural sparks some fascination and questions about our beautiful ocean - the lungs of the planet and a source for so many.” The mural, which was arranged and overseen by the Ocean Festival organisers, has not only beautified the area, but emphasises the long-term impact of the Ocean Festival which is centred on the concept: ‘Be the change you want to be.’ Visitors to this year’s Ocean Festival got the chance to catch Giffy complete the mural, as well as engage in several great activities. These included the Halfway Toyota Beach Clean-up, Mahlongwa River Clean-up, Ocean Festival conservation talks, mountain bike ride, the Cutty Sark Pro presented by SMTH Shapes surf contest, the Leatherback Surfski Challenge, and Live Music featuring Qadasi & Maqhinga. Visit www.oceanfestival.co.za for more information.

Think of a situation where you or a member of your family suddenly experiences extreme tooth pain, has a swollen mouth, has a loose tooth or accidently knocks out a tooth. These are emergencies that cannot wait for a regular dentist appointment. Dental injuries also carry the risk of infections and faster treatment means that any additional health issues can be avoided. So, besides ensuring quick pain relief and assistance for your injury, emergency care will significantly reduce the potential or continued side effects of an injury or infection. In situations such as these, the quicker that you get medical help, the sooner the problem (and pain) will be resolved. If your dentist does not have an after-hour service, you need to familiarise yourself with a dental clinic such as Crown Dental Studio, that apart from standard dentistry, is equipped to handle such cases. We are able to assist at any time of day or night, seven days a week. WHEN WOULD YOU NEED TO VISIT AN EMERGENCY DENTIST? Chipped or Broken Tooth If you experience a broken tooth, having the extent of damage assessed so as to provide a suitable solution is important. An untreated broken tooth can sometimes lead to infections such as sepsis or osteomyelitis which is an infection of the bone. You may also develop an abscess which is very painful. Knocked Out Tooth An emergency dentist ensures that you receive faster treatment, which will make a big difference between whether or not your tooth is saved or lost. A knocked-out tooth may not always be lost for good. If you can get assistance, a dentist can successfully replant the tooth. However, you need to act quickly. Find the lost tooth, try to keep it in your mouth or place it in some milk, and get to a dental clinic to see what can be done to help. Dentists will also check to see if the tooth was completely knocked out and that no parts of the root are still attached. Thereafter a suitable course of action will be offered. Tooth Abscess A tooth abscess can cause throbbing pain. The main goal of treatment is to eliminate the infection. To achieve this, the emergency dentist may open up and drain the abscess. The dentist will have to make a small cut into the abscess to allow the pus to drain out. The area will then be washed with saltwater or saline. If a problem with your tooth has caused the abscess, you may need root canal treatment, or the tooth may have to be removed. You will also be prescribed pain killers and possibly a course of antibiotics. Failure to treat an abscessed tooth can lead to severe complications. Lost Filling or Crown Fillings or crowns are meant to protect already damaged teeth. Seeking immediate help when you notice that they are missing is important. Often, a missing crown or filling could be an indication of an underlying problem such as a cavity. There is also the danger of increased sensitivity to the affected tooth and further deterioration. Post-Dental Surgery Complications In case you notice anything out of the normal after a dental procedure – such as swelling, redness or pain – make sure to immediately visit a dentist to determine if the recovery process is going well. This is especially important for surgery treatments as it could be an indication of an infection. The staff at Crown Dental Studio understand the urgency and necessity of emergency dentistry services and will strive to accommodate you in the shortest possible time. Our dental rooms are well equipped with the latest dental technology, which ensures that we are able to provide wide-ranging services. We pride ourselves in providing professional, personalised After an emergency, we will refer you back to your regular dentist for continued follow-up. Crown Dental Studio is one of the few truly 24-hour dental practises in Durban as this is not limited to emergency dentistry treatment. New Address: 26 Mackeurtan Avenue, Durban North. T: +27 (0)81 207 8621 E: info@dramod.co.za W: www.dramod.co.za

Youth Day commemorates the Soweto Uprising in 1976, a reminder of the courageous scholars who fought for freedom and equality. What better way to honour their memory than to inspire South Africans with moving accounts of today’s brave youngsters. One such story is that of Smangele Chiyi. Growing up in KwaZulu Natal, Smangele seized every opportunity life presented. At school, she was involved in drama and sports, including athletics and netball. She strived to be a great role model for others but more than anything, she wanted to make her family proud. “My life suddenly changed forever in December 2017 when I visited my family in Johannesburg,” Smangele shares. “I went to a shop and was caught up in a robbery by four armed men. I remember hearing gunshots and falling to the floor covered in blood.” Smangele’s injuries were severe; she fought for her life in intensive care for two weeks. She pulled through but was paralysed from the waist down and when she was finally discharged from hospital, she faced the daunting task of rebuilding her life. “In February 2018, I started rehabilitation at the Natalspruit Hospital in Gauteng, and although I was scared, I told myself that I could get through this. The support I got from my fellow patients who also faced various life challenges was a big part of my recovery,” she says. With the guidance of social workers, psychologists and physiotherapists, Smangele began to heal and eventually, she was able to go home. But she says her return was met with mixed reactions. “My family didn’t know how to respond towards me. I had to assure them that even though I was in a wheelchair, I was not a different person, just differently abled,” Smangele explains. Fuelled by her own experiences, Smangele has made it her mission to inspire people with disabilities and those who are differently abled. Leading by example, Smangele is currently a learner at EduPower Skills Academy where she is doing a 12-month Learnership Programme: Contact Centre Level 3. In addition, Smangele has excelled in sports and she is the only woman to qualify for the Pietermaritzburg-based wheelchair basketball team, the Warriors. Smangele’s outstanding skills have earned her a place on the National Senior Women’s Wheelchair Basketball team (the AmaWheelie Girls) that will be participating in the African Para Games in Ghana in September. Smangele, an inspiration to all who encounter her, proves that with passion, determination, and a courageous mindset, it is possible to conquer adversity, rise above it, and achieve against all odds when fuelled by unwavering determination and self-belief. www.edupower.co.za

Eswatini Air, the national carrier of the Kingdom of Eswatini, has launched a new route between King Mswati III International Airport in Manzini, Eswatini, and King Shaka International Airport in Durban, South Africa. The route commenced operations on 5 May 2023. The route will be operated by an Embraer ERJ 145 aircraft with a maximum capacity of 50 passengers, and initially, three flights per week will be available on Mondays, Thursdays, and Saturdays, with plans to increase frequencies to seven times a week from June 2023, based on demand. Speaking about the new route, Mr Siboniso Duma the MEC for Economic Development, Tourism and Environmental Affairs and the leader of Government Business in KwaZulu-Natal said, “We are pleased to announce the launch of our new route between Eswatini and Durban. This route not only enhances the tourism potential between the two destinations but also strengthens trade relations. Eswatini is one of the key regional tourism markets and shares strong historical and cultural ties with the province of KwaZulu-Natal. Pre-pandemic, tourist arrivals from Eswatini averaged 290 000 per annum and in 2022 tourist arrivals demonstrated a strong recovery of 89%. This presents an exciting opportunity for Eswatini Air to grow as a partner in accelerating the recovery of tourism between the two destinations.” The introduction of this new route is expected to facilitate trade between KwaZulu-Natal and Eswatini, further strengthening the already strong economic relations between the two destinations. According to the World Bank, over 60% of exports from Eswatini come to South Africa, and over 80% of Eswatini’s imports come from South Africa. The new route will also provide a significant boost to the regional tourism market, with Eswatini being one of the key regional tourism markets and having strong historical and cultural ties with the province of KwaZulu-Natal. Deputy Chairperson of Economic Development and Planning Committee in eThekwini, Councillor Phili Ndlovu said, “We are excited about the launch of this new route into Durban as we work to drive the recovery of our tourism sector. As the eThekwini Municipality, we look forward to working closely with Eswatini Air, by creating awareness of the new route and providing support to the airline in an effort to demonstrate our commitment to strengthening relationships with our African counterparts and showing the socio-economic benefits of making tourism a priority in achieving a development agenda. Attracting more direct airlines to eThekwini remains key in order to boost tourism and trade.” To celebrate the launch of the new route, the government of KwaZulu-Natal and Eswatini Air, hosted a delegation of 40 Eswatini dignitaries on board the inaugural flight, which included the Minister of Public Works and Transport, the Minister of Tourism, key media, and select tour operators, in order to facilitate both tourism and trade on the new route. Mr Nkosinathi Myataza, ACSA Regional General Manager at King Shaka International Airport concluded by saying, “The inaugural flight reinforces the importance of the aviation industry and how it remains a key mode of transport, generating significant benefits for an economy, by enabling tourism and trade, more significant in the context of the IAfCTA (African Continental Free Trade Area). But more so, connecting friends and relatives of these two countries especially the KZN Region with a long history of fraternal relations. It can also not escape us that this is Africa month where we celebrate our continent.” www.invest.durban

A group of aspirant exporters recently flew the flag for the Pietermaritzburg and Midlands Chamber of Business at the closing event of the Global Export Accelerator Partnership (GEAP) programme in Cape Town. The group joined their colleagues from the three other participating chambers – Cape Town, Nelson Mandela Bay (Gqeberha/Port Elizabeth), and Johannesburg – to draw the curtain on a year-long programme to train about 150 black-owned small- and medium size enterprises to enter global markets. The participants completed a year of rigorous export training, dedicated mentorship sessions and market linkage activities in the GEAP programme. The initiative was made possible through the Employment and Skills for Development in Africa (E4D) Programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The event at the Cape Town International Convention Centre (CTICC) saw participants exhibit their offerings, and they were provided the opportunity to network with entrepreneurs, corporates interested in diversifying their supply chains, and funders interested in funding entrepreneurs and supporting the ongoing rollout of the GEAP programme. The programme included panel discussions on SME access to target-markets, government support, and finance. W: www.pmcb.org.za

Innovation plays a crucial role in the growth and development of cities, regions, and nations. South Africa, a country with a rich history and diverse economy, has recognised the significance of fostering innovation and entrepreneurship to drive economic growth and tackle societal challenges. Nestled in the heart of Durban, a pioneering agency called Innovate Durban has emerged as a catalyst for innovation, nurturing local talent, and transforming ideas into viable businesses. Innovate Durban is a registered NPO founded in 2017, that aims to support innovation and innovators in the Durban KwaZulu-Natal region and beyond. The roots of Innovate Durban trace back to its inception as a programme conceptualised by the eThekwini Municipality Economic Development and Investment Promotion Unit. This programme took shape through the intervention of the Innovation Stakeholder Forum, a quarterly gathering aimed at deliberating the state of innovation and innovation support in Durban, KZN. Under the leadership of its CEO, Aurelia Albert, the agency has become a custodian of innovation in the region, providing various programmes and platforms to support innovative entrepreneurs at every stage of their lifecycle. Vital Initiatives These programmes and platforms are dedicated to nurturing innovation and entrepreneurship within the region, catering to the unique requirements of the innovation ecosystem. They serve as vital initiatives that play a pivotal role in supporting and guiding startups on their journey. One of their notable programmes is the Youth Innovation Challenge, which aims to capacitate young individuals with innovative skills and resources to create solutions for societal challenges. This initiative serves as an introduction to innovation and innovative thinking and empowers the youth with the necessary tools to become successful innovators and change-makers. Another flagship programme of Innovate Durban is the Start-Up Support Programme, which provides incubation and acceleration support to budding and established innovators. Through this programme, entrepreneurs take their concept through to market readiness, they gain access to funding opportunities and investment networks, mentorship, and business development support, reducing barriers to entry and increasing their chances of successfully commercialising their innovation. As pioneers in the KZN region’s innovation landscape, Innovate Durban acknowledges the inherent obstacles they face. Despite the rapid evolution of the innovation sector, gender imbalances and limited access to innovation resources, addressing these challenges is a top priority for Innovate Durban and they have made substantial progress through proactive initiatives. Innovate Durban specialises in establishing Innovation Centres in marginalised communities, providing crucial access to digital and technological resources. Examples include the Innovation Co-Lab in Cato Manor and the recently launched Innovation Hub and Robotics Laboratory in the Richmond Community, promoting inclusivity and empowering individuals to innovate and thrive. Dedicated Leadership Under the leadership of Aurelia Albert, Innovate Durban has made a significant impact on the local innovation ecosystem. The agency has supported numerous startups, many of which have achieved remarkable success. In just the 2021/2022 financial year, Innovate Durban has been successful in creating 11 employment opportunities, attracting R2,5 million in innovation funding, successfully supporting six innovations through to commercialisation and enhancing Durban’s overall competitiveness in the global market. Additionally, Innovate Durban’s emphasis on sustainability has led to the development of eco-friendly businesses and solutions that address environmental challenges. As the CEO of Innovate Durban, Aurelia Albert is driven by the vision of transforming the region into a dynamic and inclusive innovation ecosystem. Her dedication and leadership have propelled Innovate Durban from a small team of four staff members to a robust organisation with a team of 14 professionals. Albert’s further aspirations for Innovate Durban include continued impact in the innovation landscape and the growth of businesses and innovations developed by the agency’s innovators. By supporting and nurturing local talent, Innovate Durban, under Albert’s guidance, aims to position Durban and the KZN region as leaders of innovation in South Africa. A Hub of Innovation Having previously served as the programme manager for innovation within eThekwini Municipality, Aurelia Albert brings a wealth of valuable career accomplishments in the field to her role as CEO of Innovate Durban. Since the organisation’s inception, she has been at the forefront, guiding Innovate Durban with her expertise and dedication. Her leadership has played a pivotal role in propelling the agency’s mission and vision to new heights. Her unwavering commitment to leading Innovate Durban stems from a deep-rooted desire to witness Durban and KZN emerge as a hub of innovation within South Africa, fostering remarkable growth and development in the region. A standout achievement during her tenure as CEO has been the extraordinary expansion of Innovate Durban and its recognition beyond the borders of Durban with national and international recognition. The most recent achievement being leading Innovate Durban’s Innovation Co-Lab into successfully being regarded as an American Corner by the US Embassy. Looking ahead, Albert’s aspirations for Innovate Durban are to continue making a significant and lasting difference in the realm of innovation. She aims to further bolster support and nurture the businesses and innovations of the talented innovators within the community, creating an environment where their ideas can thrive and flourish. An Unstoppable Catalyst In conclusion, Innovate Durban has emerged as an unstoppable catalyst, propelling innovation, entrepreneurship, and economic prosperity in the KZN region. With a rich variety of programs and platforms, the agency empowers innovators, and startups, and fosters an all-encompassing innovation ecosystem. By actively engaging with industry leaders, marginalised communities, the public sector, and SMMEs, Innovate Durban is reshaping the very fabric of the innovation landscape in Durban and extending its influence far beyond. In doing so, it has solidified its position as a dynamic and vibrant hub of innovation, driving South Africa’s innovation agenda forward with unwavering determination. W: www.innovate.durban

There is a common misconception among employees that a medical certificate is a free pass to get out of work and do whatever they please for the duration of their time off. This, however, is not the case, and the purpose of a medical certificate booking an employee off is to allow them time to rest and recuperate from their illness. Using this time off to attend other leisure activities, such as attending concerts or going on extended trips, would defeat the purpose of the sick leave and could be considered an abuse, and possibly dishonesty. The situation was most aptly canvassed in Woolworths (Pty) Ltd V Commission for Conciliation, Mediation & Arbitration & Others (2022) 43 ILJ 839 (LAC). In this case, an employee had taken sick leave on a particular day, only to travel one hour from Jeffrey’s Bay to Port Elizabeth to support his local rugby team. The enough to work. His dismissal was deemed substantively and procedurally fair. In another case, NEHAWU obo Matras v Commission for Conciliation, Mediation and Arbitration and court found that the employee had acted dishonestly in absenting himself from work on the basis that he was too ill to perform his duties, but then travelled quite a distance to watch the match, knowing full well that he would be paid for the day. The employee had claimed that he felt better at the time he attended the match, to which it was stipulated that he should then have returned to work, rather than attending recreational activities at the employer’s expense. The court held that this was the case even in the absence of a policy dictating what employees recovering from illness may and may not do. It was held that if the employee felt well enough to travel and attend the match, he was also well Others (JR1970/17) [2021] ZALCJHB 285, an employee had been booked off sick for three days, during which time he had travelled from Potchefstroom to George to attend a family member’s wedding. The employer suspected that the employee had obtained the medical certificate fraudulently by misrepresenting his illness to the medical practitioner to be booked off. This suspicion stemmed from the fact that the employee had previously spoken to his manager about possibly putting in leave for this time to attend the wedding. The employee argued that the company could not challenge his claim that he was ill at the time, as he submitted a valid medical certificate which had not been disputed, and the company had failed to call the medical practitioner as a witness to challenge the legitimacy of the employee’s claim. The court, however, pointed out that the medical certificate was hearsay evidence, and the onus was on the employee to verify the document by calling the witness once the employer cast doubt on its legitimacy. The arbitrating commissioner hence correctly gave little weight to the medical certificate and relied on compelling circumstantial evidence to conclude that the employee did in fact attend the wedding in George. The employee was found to have acted dishonestly, and his dismissal was upheld by the Labour Court. It is advisable to formulate a policy in the workplace governing sick leave for employees and giving guidance to employees on what activities are acceptable when they are booked off sick. It should also address what steps employees should take if they feel better during the time they are booked off. At the very least, they should inform the employer that their condition has improved, so that the company may decide whether they should return to work. In all instances, the consideration will always be what is fair to both parties, and both employer and employee should act in good faith when dealing with bouts of illness. For any further information or assistance in this regard, please do not hesitate to contact us. T: +27 (0)31 266 6570 C: +27 (0)82 786 7480 E: johanvd@labournet.com W: www.labournet.com

Article by: Liesel Kassier, Head of Sustainable Manufacturing, Toyota Wessels Institute for Manufacturing Studies (TWIMS) No South African has been left unscathed by the blight of load shedding, nor needs reminding of the precarious state in which the economy has been left as a result. With its need for an uninterrupted power supply to sustain 24-hour operations, the manufacturing sector has been especially hard hit by this wicked problem. Startling statistics indicate that from the beginning of the year until mid-May 2023, load shedding has been implemented for a total of 134 days. To put this into perspective, there was only one day in the fourth week of March when load shedding was not implemented, exacerbating the difficulties faced by the manufacturing sector. This problem has forced businesses to pivot and take on energy portfolios within their operational structures, adding costs and taking away time from core functions. Considering the situation’s indications, the current status quo will prevail for a while longer. To remain operational and resilient, businesses must find innovative solutions to ride out the storm. Current State of Play - Generation and Grid Capacity Shortage The ongoing load-shedding crisis is fundamentally driven by a lack of sufficient and reliable generation capacity, resulting in a power system starved of electrons. In recent years, 1.5 GW per year of capacity was built and connected to the grid. In comparison, 3.5 GW was lost due to decreasing performance and the necessary decommissioning of existing coal plants. This loss has resulted in the current structural shortfall of 4 to 6 GW in power generation capacity, which drives the necessity to load shed. To address the generation shortage, South Africa needs to add 4-6 GW of generation capacity per year, reaching a total of 53 GW by the 2030s. However, there is a need for expediting the procurement of new generation capacity and reducing the severe limitations in transmission grid capacity. The limitations in the grid have become a significant obstacle that hampers South Africa’s attempts to bridge the current supply gap and propel the country’s energy transition forward. The most recent Transmission Development Plan (TDP) presented by Eskom emphasises the need to install 14,218 km of new high voltage transmission lines, 106 GVA of transformer capacity, 40 capacitors, and 52 reactors from 2023 to 2031. The estimated investment required for these upgrades totals R72.2 billion by 2027, with similar investments anticipated between 2027 and 2031. The latest TDP raises concerns voiced by Eskom regarding its ability to execute the proposed projects. They anticipate liquidity constraints and potential tariff determinations by NERSA (National Energy Regulator of South Africa) to affect their implementation. The acquisition of servitudes and the necessary resource capacity to execute the plan across the engineering, procurement, and construction value chain also pose additional implementation risks. The financial constraints faced by Eskom have underscored the urgency of finding alternative approaches to fund and execute crucial transmission infrastructure projects. Without adequate access to capital, Eskom has struggled to keep pace with the grid’s growing demand for upgrades and expansions. These limitations have impeded South Africa’s progress in achieving a reliable and efficient transmission system necessary for its energy goals. The combination of generation and grid capacity constraints highlights that time will be needed to restore the South African power system fully, reiterating the need for businesses to have a plan. The Silent Revolution According to recent statistics released by the South African Photovoltaic Industry Association (SAPVIA), 2021 witnessed the installation of approximately 3.9-4.3 GW of solar PV capacity in the commercial and industrial, and residential market segments. This remarkable growth can be attributed to significant cost reductions and improvements in technology learning rates, making solar installations an increasingly attractive choice for businesses. Notably, the declining costs of battery and storage technologies also contribute to the rise of onsite energy autonomy for companies. The distributed generation market is also experiencing growth, driven by the potential for energy trading and aggregation. These innovative solutions allow customers to benefit from diverse technology options, minimising the risks associated with long term power purchase agreements with a single energy provider. One could argue that there is an opportunity where responsibility has been abdicated, and therefore businesses should be engaging with the energy question through the following three lenses: What solutions and innovations can provide me with energy security and the most cost-effective rates? (Prioritise a mix of hybrid onsite generation technologies) Are there cost-hedging opportunities or new revenue streams to be developed from diversifying my energy supply mix? Can the current energy crisis be used to decarbonise my energy source and allow me to deal with the coming net zero legislative pressures? Energy security of supply, future electricity cost hedging and the CO2 intensity of energy supply are all critical factors that manufacturers should be strategising for, to allow them to remain competitive locally and globally. Regarding C02 legislation, it is evident that the European Union (EU) is moving faster than initially expected. On 16 May 2023, the Carbon Border Adjustment Mechanism (CBAM) was fully legislated and is set to enter into force in October 2023. This will require exporters to the EU to account for the GHGs embedded in their processes across Scope 1-3 of their emissions. This account includes the emissions that result from the electricity used in manufacturing processes. Manufacturers tied to the South African grid, which is still 80% coal-based, will therefore face significant CO2 tax implications. The iron, steel, and aluminium sectors will feel the initial impact of the tax, as they are among the first industries to be affected. However, the tax is expected to soon be extended to other sectors, with the expansion plans already in progress. Trade & Industrial Policy Strategies (TIPS) 2022 indicates that South African manufacturing exports have a carbon content of around 2250 tCO2e per $1m, while most countries sit between 300 and 1,100 tCO2e per $1m. The current European carbon pricing tax is around €85 per ton. The proposed timeline for implementing this legislation is from October 2023-2026. For this period, the burden will primarily be administrative, whereby firms will need to start accounting for their emissions, but from January 2027, the penalties will be financial. South Africa’s electricity grid will not be decarbonised by 2027. Therefore, alternative energy generation solutions need to be sought by manufacturers as it is predicted that the United Kingdom, United States, Canada, and Japan are the following regions that will be implementing similar CBAMs as they have published CBAM regulations for consultation. A Pathway to Energy Resilience Resilience in the academic world is often defined as a system’s latent ability to endure, despite adversity and to recover and maintain its existing structure after a shock. The properties of stability and flexibility are essential to achieving resilient systems. This combination of flexibility and strength allows firms to bounce back as they are good at anticipating, absorbing, and adjusting to changes. We are all facing a highly adverse energy crisis that needs innovations to help us endure. It will be those that maintain stability but also introduce flexibility through alternate energy supply technologies that will survive. Seek an opportunity where responsibility has been abdicated. Tel: +27 (0)31 767 5202 E: lisa.kinnear@twimsafrica.com W: www.twimsafrica.com

Gain knowledge, make connections and develop strategies to advance your business! Business can be very lonely, frustrating, and as the daily pressures drag on over the years, can suck the life out of business owners. A business should be the path to freedom and adventure. However, many business owners experience pain, humiliation, heartbreak and despair as a result of being an entrepreneur. One solution to consider is the Community, Accountability, Results and Education (C.A.R.E.) Eco-System for business. Who would want to be a part of an eco-system for business? Established business owners who want to: Increase their brand’s visibility Meet experts and leaders face to face Build relationships with like-minded business owners Keep up with current trends Have FUN! How does the C.A.R.E Eco System for business work? Organised networking and alliance building sessions Business2Business and Business2Consumer break-out sessions Amazing education and networking lunch ...and so much more! We will have break-out sessions, global and local keynote speakers and opportunities to sell in the room, buy in the room, build referral partners, and meet future strategic alliances. We are all about building our business community. There is no other eco-system quite like the C.A.R.E MemberSHIP. Are you a determined business owner who aims to achieve remarkable success for yourself and your business, enabling you to enjoy the freedom and quality of life you deserve? Join our exclusive monthly business C.A.R.E Eco-System MasterCLASS every third Tuesday monthly. These sessions are specifically designed for established business owners like you, who are ready to take your businesses to new heights. Our business MasterCLASS provides Community, Accountability, Results and Education (C.A.R.E) to help you grow personally and propel your business toward unparalleled success. Don’t miss this exclusive monthly event for established business owners only (The average business age is between 10 and 30+ years). You will join like-minded business owners and engage in our unique C.A.R.E. Eco-system for business. This platform provides opportunities to connect with other driven entrepreneurs looking to forge powerful relationships. MasterMIND The morning session will focus on community and education where you’ll learn from local and global industry experts sharing valuable insights on advancing your business. MasterCLASS The afternoon session will prioritise accountability and results by featuring collaborative planning for the upcoming month with a MasterMIND group. You’ll also have the chance to learn from fellow members who have faced similar frustrations or challenges or goals that they have achieved, share lessons learnt, and the advantage of this exceptional opportunity to receive personalised feedback, gain fresh perspectives and refine your business strategies. Contact me to experience your first MemberSHIP exclusive Business C.A.R.E Workshop – limited spots available! Then we can talk about becoming a member of this exclusive group of established Business Owners Eco-System for Business. Contact me on https://linkshare.co.za/marlenepowell or call +27 (0)83 479 447