ANNUAL REPORT | 2

ANNUAL REPORT April 2012 – April 2013

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Introduction Again in presenting this report on the progress of the Durban Chamber of Commerce and

Industry during the past year, we have been guided by the principles of integrated reporting.

The report will highlight successes, of which there have been a number, challenges and

weaknesses, and how these will be either sustained or addressed in the future, while also

drawing attention to the activities and events of which the Chamber may be justifiably proud.

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CONTENTS

Introduction 3

OVERVIEW 5

MEMBERSHIP 8

PUBLIC EXPECTATION AND OUTREACH 10

FINANCIAL SUSTAINABILITY 11

GOVERNANCE 13

POLICY AND ADVOCACY 14

BUSINESS SERVICES 17

COMMUNICATION 19

ENTERPRISE DEVELOPMENT 20

STAFFING 22

EVENTS 24

ACKNOWLEDGEMENTS 25

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OVERVIEW As the year began, a number of strategic priorities were to be addressed. These were

1. financial viability;

2. increase in membership, especially as far as larger companies are concerned;

3. more rigorous risk management, particularly in the sphere of governance;

4. the development and adherence to a strategic plan for communication, including

attention to an antiquated IT system;

5. enhanced advocacy programmes;

6. new revenue streams;

7. the identification of new markets.

The progress made in these areas is dealt with during the course of this report.

The most significant achievement in the year under

review was to avoid yet another deficit (strategic priority

#1). The previous three annual reports have had to

reveal operational deficits, the 2011 shortfall being

R1,449 million. This report is able to reflect a surplus of

R1,919 million, an amount which includes the revaluation

of investments and investment income and if confined to

operational transactions is limited to R445,554. While

this enabled the budget for 2013 to include a meaningful,

but not as generous as one would have liked, increase for staff, it is a circumstance that should

not invite complacency. The costs of employment were less than budgeted because of the

difficulty experienced in filling management positions. But events and functions yielded

satisfactory returns on which more may be built, while financial prudence was shown in several

other operational areas.

The most significant

achievement in the year under

review was to avoid

yet another deficit.

This report is able to reflect a

surplus of R1,919 million,

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Member and public confidence in the Chamber continued to rise during 2012 as a result of

regular and effective communication, an expanding profile in the media and in relation to

enhanced relationships with important stakeholders. This was not always backed up by

internal efficiencies and productivity, and, particularly since the appointment of a Chief

Operations and Financial Officer at the beginning of September, it is the intention of the CEO

to consciously raise the bar in this sphere during 2013. At current levels of productivity, the

Chamber employs too many people, but this would not be the case were we to do everything

that we could to elevate the DCCI to being world class in

the exercise of its various typical chamber of commerce

functions, as well as others which are expected of a

Chamber in South Africa.

Two important challenges have evaded resolution during

the year, but the discussions held as these have been

faced have revealed great complexities. One is the

constitutional status of the DCCI. The chartered status

afforded the Chamber during the nineteenth century is

considered inappropriate in the contemporary business

environment. Increasingly, institutions are being

expected to have registered status, particularly if they wish to qualify for grant or other funding.

Moreover, the Chamber should set an example in terms of its governance practices, and it

cannot do so if it is subject to a Charter and Rules which fail to recognise accountability on the

part of those who provide decision-making leadership.

A second matter of grave concern relates to the premises which the Chamber has occupied

since they were custom-built for its purposes in 1999. The terms of the lease, which expires

at the end of January 2014, include an annual escalation of 11%, a figure which has become

out of touch with the current reality of the property market in this part of the city. We are

spending too much on rent. Notwithstanding the cost, the Chamber‟s comfortable tenancy of

Chamber House has been compromised by the entry to the building as co-tenant of a political

party. In the course of the year under review, the building has been effectively re-branded,

Member and public confidence

in the Chamber continued to

rise during 2012 as a result of

regular and effective

communication, an expanding

profile in the media and in

relation to enhanced

relationships with important

stakeholders

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and, indeed, re-named. These concerns aside, however, parking has become an issue for

Chamber visitors and it is felt that the inconvenience of this has affected attendances at

meetings held at the Chamber. The Council and Board have explored several options and

continue to wrestle with a choice of future home which will be in the best interests of the

Chamber.

Challenges Ahead

Following the Annual General Meeting, and the installation of a new President, Akash Singh,

the Chamber will continue to address its most serious challenges. Apart from those cited

above, they include

Inadequate enrolment of new member companies, notably those of a larger size;

The retention of members who resign, often on receipt of the annual subscription

invoice, citing “lack of benefit”;

Shortage of expert capacity within the staff;

Greater accountability on the part of staff for their performance;

Significant sources of revenue apart from subscriptions;

More effective marketing of services which constitute a much longer list than is often

recognised;

More dynamic Standing and Area Committee meetings which are better attended;

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MEMBERSHIP During 2012, under the management of Sibusiso Msawoni,

503 new members were enrolled (strategic priority #2). This

increased the net membership by 256 from January, a very

encouraging increase. The gilt was tarnished by the fact that

between November 2012 and March 2013, 186 members

resigned, mostly in response to requests for subscription

payment. However, the year reflected a net gain in

membership which is a change from the former trend and a

reasonable achievement given the fact that times have been

hard, particularly for smaller companies. In assessing the

performance of the Area Liaison Officers, it needs to be

remembered that 231 members were enrolled within the terms

of an agreement with First National Bank which sponsored, to the tune of R100 000, the

membership of new business account holders for a year. Some of these free memberships

expired during 2012, and the companies declined to extend their membership, preferring not to

pay the subscription. This reflects negatively on the impact that the Chamber made to the

businesses, but it has to be acknowledged that participation and involvement in the activities of

the Chamber are required if businesses are to derive optimal value. Many do because they

take advantage of the various opportunities that become available to members.

During 2012 it was decided by the Board that the potential of medical professionals as

members should be exploited (strategic priority #7). Doctors, after all, are business people,

and from all accounts, not nearly as good at business as at medicine. The feeling was that

the Chamber would be able to offer services which would be of value in the business aspects

of their practices. As it transpired, recruitment was disappointing, the appetite for Chamber

membership being clearly less than had been anticipated. However, a meeting of those who

had joined was held early in 2013 and a chairperson elected to head a new Standing

Committee which would directly serve the medical members. Despite the difficulties

associated with the timing of events (doctors are generally not available when other chamber

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members are able to attend meetings), it is hoped that by delivering constructive services to

health practitioners, more will seek membership. The key to member retention is the value of

the benefit, but it is also related to person-to-person contact with the right people within a

member organisation. Chambers, the DCCI included, wrestle with this. The right person for

one communication or contact is not the right person for another. Steps will be taken to

improve the information that the Chamber holds with regard to people within the member

companies with a view to addressing this problem. This will necessitate much more personal

contact on the part of Area Liaison Officers with member companies. The targets set for

2012 – each company to be contacted at least three times in the year – were not achieved as

was clear from the number of inaccuracies in the database which emerged during the course

of the year. It is increasingly necessary to store and use the right information, which must

include individuals‟ cell phone numbers in order to activate successful the facility that the

Chamber has to communicate via cell phone. This will be very useful in the case of meetings

for which people need to be reminded.

From the beginning of 2013, a concerted effort has been made to improve the Chamber‟s use

of social media and a consultant was engaged to do this on a part-time basis. This is a way of

exploiting the fact that although Chamber members are companies, they comprise individual

people, and the more of them that become interested in the Chamber‟s activities and follow it

on social media platforms, the better the chances are of companies deciding to join and

support.

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PUBLIC EXPECTATION AND OUTREACH In this time, Chambers cannot be content with private status and the servicing of members.

There are increasing public expectations, sometimes related to erroneous perceptions that

chambers are government-funded. This perception also reflects the wide belief that

chambers are the institutions which not only represent Business, but also promote and nurture

it. However, for the sake of its credibility and because of the importance in relation to

economic growth, the Chamber has no alternative but to share alignment with government in

terms of the burning issues of poverty, unemployment, especially among youth, black

economic empowerment, gender equity and entrepreneurship promotion. The Board has

been very conscious of the importance of these matters and done its best to ensure that they

influence the ways in which the Chamber operates and engages with its stakeholders.

During the year, the DCCI has embarked on a township business development project in

Umbumbulu. During November 2012, the DCCI staged a „Business Day‟ in the township.

Local people attended to hear presentations from a number of private and public sector

organisations with service offerings for those who wanted to know more about business. The

project enjoys the co-operation of the eThekwini Municipality which has agreed to fund the

initiative as part of a comprehensive grant package to the Chamber which will undertake, on

the municipality‟s behalf, a number of programmes which, it is felt, are best driven by the

private sector. The grant of R2,25 million, recently approved, includes money for the

township business development, some aspects of investment promotion, enterprise

development and also women empowerment. In 2012 a highly successful Women

Empowerment conference, with the support of the eThekwini Municipality, was staged by the

Chamber. This included a series of “Women of Excellence” awards and announcements of

the establishment of a Women in Business directory and a Women Empowerment fund.

Plans for an expanded programme, including a conference to make it an annual and iconic

event, are in place for 2013.

On Women‟s Day 2012, the Chamber joined a community event in Inanda, the co-ordination of

which was done very largely by Chamber staff. The programme included presentations on

business related matters and the provision of basic health services offered by the Municipality.

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FINANCIAL SUSTAINABILITY The highlight of the year has been the turn-around of the Chamber‟s financial position

(strategic priority #1). In 2012 the auditors raised the question of “going concern”, and were

not required to do so this year. However, sustainability is not as assured as it should be into

the future. Reliance on subscriptions to the tune of

60% of income is too high and it must be the objective

of management to boost revenue from non-

subscription sources to a higher proportion. The

change in the subscription collection system so that all

members have a common payment date has now

been firmly established and the transitional problems which were encountered are things of the

past. It is clear that the change was a positive development, for it provides cash in quantity

early in the year and alleviates much of the administrative work that had to be done in relation

to anniversaries occurring each month of the year. In 2012, it took all of twelve months to

collect R5,957 million of subscriptions, this being 92% of the budgeted income from this

source. A great deal of time was spent on telephones urging member companies to pay, and

this revealed that the invoice and statement system that we are using results in duplicates

having to be sent to those who claim not to have received them. In 2013, concerted efforts

will be made to get as much subscription income as

possible by the end of April at the latest.

Income from certificates of origin increased by 36% in

2012. This was attributable to the increase in price of

32% imposed at the beginning of the year in order to

bring the price in line with that charged by other

organisations. This remains a very important service of the Chamber and the systems

employed allow certificates to be applied for and received within a very short time. Staff

members involved in the procedures are adequately trained and this will be an ongoing

commitment to ensure that the integrity of certificates issued by the DCCI remains untainted.

2012,

R5,957 million of subscriptions

Income from

certificates of origin increased by

36% in 2012

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Under the direction of the Manager, Jane Pillay, the 2012 events programme yielded very

pleasing financial returns. By the end of the year, a sponsorship amount of R150 000

committed by the eThekwini municipality was still outstanding and this was essentially the

difference between the budget figure for the year, which was quite substantially higher than the

previous year, and the income realised. It is clear that events and functions constitute a

major revenue source, as well as providing excellent networking, information-sharing and

business engagement opportunities. The anticipated income has been increased again for

2013 and it is believed that this will be attained by a programme that will be further enhanced

by more professional delivery and high calibre, relevant presentations.

Despite prudent management of expenses, sometimes to the detriment of the Chamber‟s

image and progress, perhaps, the ravages of a high monthly rental cannot be escaped. Rent

constitutes 17% of expenses, a figure thought to be too high, especially in relation to the

current state of the building which discredits the Chamber. It lacks the professional gravitas

and general cleanliness that the Chamber‟s premises should exude. It is considered fortunate

that the lease expires at the end of January 2014. This will provide the opportunity to move

into alternative premises, which, one hopes, will ease the parking difficulties, provide a better

standard of office and, above all, save money.

In 2012, the Chamber adopted a more realistic approach to its financial practices. An

overdraft facility was approved to avoid the necessity for shares to be sold whenever cash flow

ran short and it was accepted that businesses customarily pay accounts at a particular time in

a month and, therefore, do not pay in advance ahead of functions and events for which their

staff book. This has been a requirement but one honoured more in the breach than the

observance. At the same time, the Chamber was always a prompt payer once invoices were

presented. Thirty day terms have now been arranged with several creditors to ensure that

cash flow is better managed. For larger events, invoices are presented early and companies

pressurised into paying ahead of the event.

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GOVERNANCE Since the beginning of 2011, emphasis has been laid on better practices of governance

(strategic priority #3). An Audit, Risk and Compliance Committee with an independent

chairperson is now in place and monitors the progress of the Chamber in respect of the

various risks that it faces. Members of the Council are required to declare their interests both

at the beginning of the year and at the start of each meeting, while observance of the Rules is

done strictly and consistently. Attention has been given to procurement and a policy has

been adopted by the Council and implemented. A review of other policies, especially those

relating to staff, is underway with a view to updating them to cater for current employment

circumstances.

The circle of good governance is incomplete, however, without a statutory status which

accords with modern business practice. It is necessary, it is felt, for the Chamber to be

governed by a Board of Directors in terms of the Companies Act. While the Council has

agreed with the necessity for change, as recommended by the Audit, Risk and Compliance

Committee, the President and the Chief Executive, the adoption of an acceptable

Memorandum of Incorporation has proved impossible so far. The point of contention would

appear to be the transfer of ultimate decision-making power from the Council, as governed by

the current Rules, to a Board of Directors. Legal guidance has been sought on this matter.

The opinion expressed by the attorney is that the Act does not entertain any erosion of

directors‟ powers in favour of another structure. Consultation on this matter is continuing and

will do so until a solution acceptable to the Council, and Chamber members, is found.

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POLICY AND ADVOCACY Notwithstanding the fact that the Chamber has lacked a manager of policy and advocacy since

Amar Sooklal resigned in April 2012, the advocacy function has been considerable enhanced

(strategic priority #5). At the time it was felt that there were other priorities that required at

least some of the allocation budgeted for this position. It became clear, particularly in the new

year, that a person to manage this work is essential and efforts are being made to adjust the

2013 budget to accommodate a new appointment. The policy and advocacy work has been

effected successfully, largely as a result of the

Chamber‟s good fortune in having in its employ a

graduate intern, Shivani Singh, who has a Masters

degree in Economics . She has provided committees

with documentation around which discussion has

taken place, done valuable research into diverse

issues and drafted submissions to government. When the Board decided that the Chamber

should compile a business vision for the economic development of the city, much of the

preparatory work fell to her. She collated input from committees (all were asked to include

this in their agendas and submit recommendations) and individuals and did the primary draft of

the final document. This document is in the final stages of completion. It represents a

unique initiative on the part of Organised Business.

Advocacy on the part of the Chamber is central in its raison d‟être. Unfortunately, it is not

strong as a saleable service and members, generally, fail to appreciate what chambers do to

advance the case for Business. Within the eThekwini Municipality, for example, the strong

stance taken by the Chamber was instrumental in the decision of the City to postpone the

introduction of both a development levy and a local business tax. Indeed, in the case of the

latter, the advocacy channel from DCCI to SACCI resulted in the Minister of Finance resisting

the introduction of a local business tax which had been proposed by several metropolitans,

including eThekwini.

Formal submissions that were made include those in connection with The Tax Laws

Amendment Bill, Infrastructure Development Bill, the B-BBEE Amendment Bill and the

Advocacy

on the part of the Chamber

is central in its raison d’être.

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proposed amendments to the Code of Good Practice, the Tourism Bill, the Draft National

Norms and Standards for the Remediation of Contaminated Land and Soil Quality, a Municipal

Demarcation Board proposal to excise the area around KSIA from the eThekwini Municipality

and transfer it to KwaDukuza, the proposed Special Economic Zone Bill and the Preservation

and Development of Agricultural Land. The Chamber also developed a policy on the tolling of

roads. In numerous meetings, Chamber representatives made input to the Provincial Growth

and Development Plan, tourism strategies, including the one adopted by KZN Tourism, the

eThekwini Budget, the Integrated Freight and Logistics Strategic Framework and Action Plan

for eThekwini, the Municipality‟s Back of Port plan and the proposed Dig-out Port, among

others.

An innovation during 2012 was the introduction of a partnership with Tsogo Sun and the

Sunday Tribune‟s Business Supplement (This supplement also featured weekly a selected

entrepreneur within the context of an agreement

between the Chamber, the newspaper and Investec.)

which involved periodic round table breakfast meetings

which were called to discuss particular pertinent issues.

These were attended by individuals invited because of

their closeness to the topic under discussion. One

dealt with the Demarcation Board‟s proposal, another with the Durban Beachfront and a third

with the Food Supply Chain. Facilitated by Professor Jeff McCarthy, these meetings were

covered in feature articles in the Tribune‟s Business Supplement.

The Chamber made a successful proposal to SACCI that it should host and manage a SACCI

Port and Logistics Committee which could deal with matters of concern relating to the ports

and their access. These meetings have got underway and shown clearly the need for national

intervention which SACCI is able to offer.

Policy and advocacy are driven by the Chamber‟s Standing and, to a lesser extent, Area

Committees. The introduction during 2011, and some intensification of this last year, of

focused topics as central features of committee agendas and the advertisement of meetings to

all members, has had mixed success. Attendances at some meetings have been

An innovation during 2012 was

the introduction of a partnership

with Tsogo Sun and the Sunday

Tribune’s Business Supplement

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embarrassingly small, but others have drawn good attendances, often by virtue of the

relevance and dynamics of the discussion. One meeting of the North Area committee during

2012 drew over a hundred people to hear a DTI presentation on its incentive offerings. The

Durban Port Committee is always well-attended and proves consistently valuable to those who

sit round the table because it is an opportunity, sometimes though not always unfortunately, for

them to engage with various agencies which manage aspects of the port. The Tourism

Committee is another which draws a consistently large number of members. Perceptions that

this committee is only interested in the beachfront are not entirely valid, although the

committee itself is conscious of the fact that, owing to the constituencies of most of those who

attend, the beachfront often dominates discussion, but its brief covers the whole area of the

city. The Central Area committee has highlighted the problems associated with urban decay

in the traditional CBD and the inadequacy of current policies relating to informal trading.

Indeed, the Chamber has requested SACCI to take this up as a matter of urgency with DTI

because it is clear that the informal economy has been taken over to a large extent by

immigrants who are using the freedoms inherent in informal trading to evade compliance and

squeeze indigenous people out.

In pursuance of the policy to build committee meetings around a particular topic of relevance

and to make the agendas more attractive, the Chamber arranged numerous presentations

during the year. These included the Durban Green Corridor (Tourism Committee); Quality of

municipal electricity supply and SIP2 (the Durban-Free State-Gauteng logistic and industrial

corridor) (Infrastructure Committee); Child Trafficking (Safety and Justice); KZN Growth Fund,

Economic Developments in the city and the draft KZN Maritime Strategy (Economic Affairs);

Integrated Rapid Public Transport Network (Infrastructure and Central Area); Small Enterprise

Finding Agency and eThekwini Maritime Cluster (SMME); Contaminated land, Medical waste

and Landfill management (Environment); Dube‟s iConnect Cloud platform and DTI Grants and

Incentives (North Area).

The appointment of a suitably capable manager will address some of the current challenges.

Meetings need to be enlivened with interesting focus topics introduced, they need to be better

advertised and the overlapping of subject matter needs to be addressed by joint meetings

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being held when appropriate. This is particularly the case with the Economic Affairs and

Infrastructure committees. In addition, greater efforts need to be made to encourage

participation by representatives, even decision-makers, of larger companies which in earlier

days dominated these committees.

Advocacy is not confined to the formal submission of commentaries on proposed legislation.

It includes the countless individual concerns that are taken up by Chamber on behalf of its

members. These have ranged, inter alia, from tax matters, to problems with the

Compensation Commission (particularly relating to Letter of Good Standing), to property

valuations, to congestion at the port, to the problem of large vehicles on Fields Hill, to the

continued absence of a working weighbridge on Bayhead Road, to delays in authorisation for

development and to unregistered taxis.

BUSINESS SERVICES This department was compromised after the resignation at the

end of June 2012 of Malusi Mpanza when it became

impossible, for a period of six months, to find a suitable

replacement. In particular, a person with management

experience and knowledge of int ernational trading was

required. Finally, Mrs Dumile Cele was identified and

appointed during January this year. She has an impressive

CV with experience considered entirely appropriate for the

position. She will also manage the SMME Desk.

It is within this department that certificates of origin are provided, and the initial acceptance of

documentation for attestation was done by Leonard Shange for much of his thirty-three years

of service at the Chamber. He retired at the end of October. The Chamber‟s work with

certificates of origin is exceedingly important. Not only does it earn significant revenue

(R3,013 million in 2012), but it provides an accessible and prompt service to exporters. For

some years, the right of chambers to attest certificates, in common with chambers of

commerce throughout the world, has been open to contestation and it would be unwise to take

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this function, and the revenue that comes with it, for granted. The „control‟ of certificates of

origin is now vested in the ICCSA rather than SACCI (where it was perceived to favour SACCI-

affiliated chambers alone), but heels have been dragged in respect of proper accreditation and

the introduction of electronic submission mechanisms which are common in several other

countries. The DCCI is acutely conscious of the need for constant vigilance over certificates

issued and the importance of good training to prepare people to do the attestation correctly.

The Business Services Department deals with all trade and business delegations. In recent

times, there has been a succession of incoming missions, most of which have relied on the

Chamber to provide networking opportunities with its members. This has inevitably involved

hosting at the DCCI‟s expense and it is felt that the outcomes in terms of benefits for our

members have not been positive. In light of several requests for the Chamber to advertise

visiting missions, arrange person-to-person networking and host meetings, it has been decided

that a fee will be charged when extensive DCCI resources are required to make the requested

arrangements. Chambers are often exploited by companies wishing to take advantage of

their membership base, sometimes when they are earning consultancy fees for their services.

It is frustrating that the membership of the DCCI does not seem to have an appetite for joining

out-going delegations. Attempts to identify countries to which delegations could be arranged

have yielded meaningless responses, while opportunities that have been offered have not

been taken up. Larger companies are self-sufficient in this regard, while at the other end of

the spectrum, there are those that are not ready for international trading. But, over time the

DCCI has lost a considerable amount of momentum in this regard; it was once a notably

successful organiser of outgoing delegations. It is a meaningful objective to recapture this.

There is money to be made and credibility to be earned, but it will necessary to develop the

expertise first and then market it effectively.

Among its various services to members, which now include BEE verification and mediation, the

provision of relevant business information is considered to a competitive edge which the

Chamber enjoys. While the transmission of information is done through seminars and

publications, such as a regular Trade Bulletin, for example, a great deal of it is passed on in

response to individual queries. At least one member of the Business Services Department

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spends much of her time engaging with members who require answers to their many and

varied questions. Some responses require lengthy research and at present this is regarded

as a benefit to members. In time, the Chamber must learn how to evaluate information so that

a charge may be levied when valuable information is provided, especially if it is provided to a

non-member.

COMMUNICATION In a year during which the Chamber was short of three managers simultaneously,

Communication and Marketing was one which was rudderless for several months. A great

deal had to be done by the person, Bradley Waltman, who was appointed and took office in

August. He has brought to the position a lot of experience, especially in the use of

technology, and his knowledge has proved very valuable.

The Daily Digest has continued as the means of daily communication with members and

attempts have been made to sustain a level of usefulness and vibrancy. It has been

supported by direct emails to member companies. Communication with members has posed

an increasing number of challenges, however (strategic priority #4). Not only does the

Chamber have a very full programme of its own events, but there are constant calls from

members, NGOs and government agencies to advertise functions and events on their behalf.

The general rule of thumb is the extent of the benefit to our members of knowing that a

particular event is being staged. As far as government is concerned, it is difficult to deny

departments access to our members by means of our communication channels.

Consequently, effective marketing is compromised by the volume of advertising required, and

satisfactory solutions to this have not been found yet. Repetitious advertising loses impact,

but there is always a tendency to believe that extra advertising is required when the response

is indifferent.

What is more of a concern, however, is the twofold problem of people unsubscribing on the

grounds that the Chamber sends them too many emails and the intervention of spam filters

which are inclined to block emails when a number emanate from a single email address. The

manager is working on a rationalisation of the list of recipients with a view to trying to avoid

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sending messages to people who perceive them to be irrelevant. Thus, the group that

receives information about trade will constitute people who are interested in this, and they

won‟t necessarily receive other information. At the heart of the problem is the fact that many

recorded recipients, contacts whose names have been provided by member companies, are

not the most appropriate people to receive Chamber information. This problem may be

addressed by a more accessible and user-friendly CRM mechanism and the diversification of

communication media, such as contact via cell phone and greater reliance on social media.

An acceptable website would also assist in communication, particularly if it invites access and

entry and is modern in concept. Such a platform has been identified and a new website is in

the process of being developed. The platform used gives the Chamber considerable scope

to manage the website and to ensure that it is consistently up to date and interesting. It also

offers networking and will facilitate interaction among members and between members and the

Chamber.

ENTERPRISE DEVELOPMENT After seven years of support for the Chamber‟s SMME Desk, the formal arrangement with

Absa ended at the end of June 2012 when Gugulethemba Ngcobo‟s secondment to the

Chamber to manage this facility came to an end. Thanks to Absa‟s generosity, however,

Gugu was made available to the Chamber two days

each week , an arrangement which has persisted into

2013 while discussions have taken place regarding the

future. Absa has proposed migrating its entire

Enterprise Development Centre staff into the Chamber,

a proposal which has found great favour. However, the

current premises are not suitable for this to be effected now and the move will take place when

the Chamber has moved into alternative premises where adequate space will be provided. In

the meantime, with some assistance from the former Desk manager, the Chamber is

developing programmes which will meet the needs of the SMMEs within, and outside, the

membership.

The tendency is for small

businesses to expect that

opportunities are going to be

given to them.

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Until the beginning of this year, activities of the Desk have been dominated by the R2 million

funding for enterprise development by BATSA and, to a lesser extent, the SAPLATO

mentorship programme which is undertaken by the Chamber in partnership with SEDA and the

VOKA Chamber of Commerce in Flanders. These programmes have focused on fledgling

rather than established businesses and the result is that some of the needs of the latter have

not been successfully met. The segmentation of the SMME sector within the Chamber needs

to be done in such a way that the services offered are spread and tailored to particular needs.

The tendency is for small businesses to expect that opportunities are going to be given to

them. Within the SMME committee, for example, there is constant cry for more business to be

commissioned by large companies. A number of

electronic linkage programmes have attempted, with

varying degrees of success, to provide a platform for

bigger businesses to engage the services of small

enterprises. Indeed, the Chamber is involved in a

project, initiated by the World Bank and taken on by a

company called Market Square, which will be a Durban Chamber-based linkage programme.

Over the past months, this has been advertised to members, large and small, with a view to

encouraging them to register. In addition, a somewhat different approach is to be adopted.

SMMEs within the Chamber will be invited to provide all their pertinent details which will then

be made available to large procurers with an invitation to use the services of these smaller

enterprises. At the same time, the requirements of these procurers will be made available to

the smaller companies. In this way, the Chamber will be interventionist but from the point of

view of smaller companies seeking business, with the help of the Chamber, rather than waiting

for it to come to them.

The contribution of BATSA over several years is acknowledged with gratitude. There was a

good deal of disappointment when the decision was made not to renew the funding in light of

strategic changes within BATSA‟s CSI department. It enabled the Chamber to offer a

plethora of training courses at no cost to attenders, but, as valuable as this was, it also had the

effect of compromising the success of other training offered by the Chamber at a charge.

The contribution of BATSA over

several years is acknowledged

with gratitude

ANNUAL REPORT | 22

Free training to fledgling businesses will continue by means of using stakeholders which are

willing to offer it without charge, but the Chamber will press for other training at a higher level

to business people who should be paying for the value they receive. This is in line with the

segmentation referred to earlier.

The Chamber is anxious to be afforded the status of Enterprise Development Recipient which

will enable it to accept money which can then be invested in enterprise development

programmes, enabling the funders to earn enterprise development points on the BBBEE

scorecard. This will be regarded as a priority before the end of 2013. Related to this

objective is the hope that the Chamber will qualify to receive substantial funding from the DTI

in terms of its Incubator Incentive Fund. To this end, engagement with Transnet, and

Transnet Port Terminals (TPT) in particular, has led to mutual agreements that the

establishment of an incubator for enterprise development will be a joint venture between the

Chamber and TPT. This incubator will focus on the maritime sector and TPT‟s supply chain.

It is envisaged that it will nurture micro and small businesses at various stages of

development.

STAFFING The most notable staffing change which occurred during 2012 was the retirement of Trevor

Douglas, the Chamber‟s Finance and Administration Manager for 16 years, at the end of

August. In fact, he should have left several months before that, but agreed to stay until a

successor could be found. His contribution to the progress of the DCCI over the years can

neither be underestimated nor accurately evaluated. He was a stalwart protector of propriety

and responsible financial management whose loyalty to the organisation is legendary. A

tremendous loss of institutional memory was feared, but, as it turned out, did not occur as

expected. The opportunity was taken to revise the role of the person responsible for the

Chamber‟s finances and, in particular, to broaden it to include other operational aspects which

required attention. The new post was advertised as Chief Operations and Financial Officer

and it was filled, following several other unsuccessful interviews, by Praneel Nundkumar. As

a CA, and notwithstanding his young age, he came with an excellent record of performance

both in the profession and then, later, as an acting financial director of a large company. The

ANNUAL REPORT | 23

challenge of the Chamber appealed to him and he took office on 1 September. The particular

characteristics of the Chamber‟s finances were assimilated very quickly and it was not long

before the new manager had a firm handle on the requirements of the job.

Mention of the appointments of Bradley Waltman and Dumile Cele into management positions

has already been made. They joined Sibusiso Msawoni, Membership Manager, and Jane

Pillay, Events and Corporate Liaison Manager as the executive team. Thabsile Ntuli

resigned from the SMME Desk to take up a better position elsewhere. There were no other

changes in staff during 2012, going into 2013. The beginning of the new year, however, did

see the arrival of four graduate interns sponsored by the Services SETA. These young

people, all very impressive, have been deployed in the Events, Finance, SMME and

Communications/Marketing departments, respectively.

The Chamber now qualifies as a designated employer and, accordingly, will be submitting

employment equity reports. These will inform the staff appointments in the future, for the

Chamber must retain a high level of credibility being operating as a model business in terms of

compliance and other considerations.

Among the early tasks assigned to the new Chief Operations and Financial Officer was the

development of a comprehensive Performance Management System covering all members of

staff. Previously, key performance indicators had been attached only to management

responsibilities. These have been absorbed into an integrated system which will introduce

six-monthly appraisals for all staff, with the first taking place in June/July this year. In January

2013, the staff participated in a team-building session, and this was followed by a workshop in

which the rationale for the PMS and its modus operandi were discussed. Staff have been

urged to “raise the bar” in 2013, and, although the external relations, activities and image of

the Chamber will not be neglected, the focus of management will be on internal productivity

and efficiencies.

ANNUAL REPORT | 24

EVENTS Events and functions have the potential to yield at least a million rand in revenue, it is believed

(strategic priority #6). A good deal of this will again accrue from the major events, viz. the

Annual Dinner and the Exporter of the Year Awards, both of which are generously sponsored

by Vodacom and Transnet Port Terminals, respectively. In 2012, Dr Mamphela Ramphele

was an inspirational keynote speaker at the Annual Dinner. At the modest end of the events

spectrum, the Chamber staged a number of seminars and presentations, as well as training

courses. Most seminars, organised to provide important information and insights to

members, are conducted by people within the membership who do not charge for their

contributions, but allow the Chamber to levy charges for attendance. Some of the seminars

held in the year under review covered the Protection of Private Information Bill, Equality of Pay

(a most interesting presentation by labour expert Andrew Levy), the prospect of International

Air Services to Durban, an Africa Opportunity Report (presented by Ernst and Young), the

municipality‟s Back of Port Plan, proposed revisions to the B-BBEE codes, development

projects in the Northern and Western Areas of the city and the opportunities presented by the

Jobs Fund. The name „Power Connection‟ is given to lunch functions which feature high

profile speakers, and three such events were held. They featured Maria Ramos, CEO of Absa,

Thuli Madonsela, the Public Protector, and iconic business personality, Bobby Godsell. Two

Executive Forum events were staged. These are designed to give those who attend the

opportunity of engaging, in a smaller group, senior officials of the presenting organisation. In

the year under review, Transnet Port Authority and its plans for port expansion, and the

Provincial Planning Commission were featured. These were kindly sponsored by Capitec

Bank. For the second year, the Chamber held an Economic Symposium, in 2012 the subject

was the Economics of Tourism and among an excellent panel of speakers, Dr Roelof Botha

came from Gauteng to deliver the keynote address.

Reference has already been made to the extremely successful Women Empowerment

Conference which will become an annual feature of the Chamber‟s event calendar. The

advancement of women and better representation in Chamber structures was an additional

priority motivated by the Board. A successful corporate golf day was held while regular

ANNUAL REPORT | 25

networking events, called Coffee Connection, were staged in various venues. They have

proved to be very popular among members. The most recent of these during March drew over

ninety people.

ACKNOWLEDGEMENTS The Chamber, acknowledges with gratitude

SPONSORS OF VARIOUS EVENTS, INCLUDING, NOTABLY, VODACOM, TRANSNET PORT TERMINALS, CAPITEC BANK, ABSA, TIKZN, FNB, SEDA AND MANY OTHERS.

THE SERVICES OF THE MEMBERS OF COUNCIL AND THE BOARD;

THE WORK OF THE CHAIRPERSONS OF THE STANDING AND AREA COMMITTEES AND THE MEMBERS WHO HAVE SUPPORTED THOSE COMMITTEES;

ALL MEMBERS WHICH HAVE PARTICIPATED ACTIVELY IN THE AFFAIRS AND ACTIVITIES OF THE CHAMBER;

THE SUPPORT OF THOSE MEMBER COMPANIES THAT HAVE MADE EXPERTISE AVAILABLE FOR THE STAGING OF SEMINARS AND OTHER PRESENTATIONS;

MEMBER COMPANIES THAT HAVE ASSISTED THE CHAMBER BY THE PROVISION OF VENUES AND/OR SPECIAL RATES FOR THE USE OF THEIR SERVICES.

THATO TSAUTSE

President 9 April 2013