JOBURG MARKET (SOC) LTD Company Registration No: 2000 ... Market 2018-1… · • Section 2...
Transcript of JOBURG MARKET (SOC) LTD Company Registration No: 2000 ... Market 2018-1… · • Section 2...
JOBURG MARKET (SOC) LTD
Company Registration No: 2000/023383/07
BUSINESS PLAN
2018/2019
Strategic Renewal of JM
A new Wave towards 2021
Presented in terms of section 87 of the Municipal Finance Management Act, 56 of 2003
Version 1.3
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Sign off – JM Management / Board / MMC: ED
Charles Hamilton
___________________
Signature
Executive: Strategy & Transformation (Acting)
Date of Approval
Sifiso Dlamini ___________________
Signature
Chief Financial Officer
Date of Approval
Ayanda Kanana ___________________
Signature
Chief Executive Officer
Date of Approval
Doris Dondur _____________________
Signature
Chairperson of the Board
Date of Approval
Cllr. Leah Ruth Knott _____________________
Signature
MMC: Economic Development
Date of Approval
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EXECUTIVE SUMMARY
The Business Plan is linked to the JM 5 – year Strategic Plan and is primarily a planning
and communication document designed to integrate business strategic intent and business
imperatives. The plan seeks to set out the short term strategic plan of the Company for the
period 2018/2019, and becomes the springboard for the medium to long term planning for the
outer years.
The document also outlines Joburg Market (JM)’s new vision for the future and details the
manner in which JM intends transforming itself through an active process of Strategic
Business Renewal (SBR)
The JM strategy is designed to support the City of Johannesburg (CoJ) Integrated
Developmental Plan (IDP) which contains 2018/19 Delivery Agenda (Diphetogo).
The strategic objectives have been mapped back into particular Divisional Operational
Plans, with Key Performance Areas (KPAs), from which specific Key Performance
Indicators (KPIs) were developed. The KPIs will form part of individual employees’
performance compacts.
The linking of business plan goals, strategies, desired performance and action plans within
the context of the Performance Management system will provide the framework for
determining the net business impact for any business intervention. The business plan will
therefore become a support tool for all levels of personnel when determining the impact
of non-achievement of strategic intent and any corrective action through to personnel
performance management. As a result the plan needs regular revision via an approved
business planning process to communicate the business.
The business plan is divided into different sections in line with CoJ’s Group Governance
requirements and guidelines. The structure of the FY2018/2019 Business Plan is as follows:
• Section 1 provides an introduction which includes a descript ion of how JM
relates to its Shareholder and the context to the strategic plan. It reviews the
historical background of the Company, business challenges that the Company faced,
and the strategic response from the leadership to redirect and redefine the direction
of the Company;
• Section 2 describes the Company’s macro and micro environments analysis. It
provides an overview of JM in general and the nature of the business environment
within which it operates;
• Section 3 def ines and outlines the strategic alignment to the IDP, SDBIP, budget,
and the business plan of the City.
• Section 4 presents the JM Risk Register, which was developed in conjunction with
various stakeholders and highlights the key challenges and potential risks that the
organisation could have;
• Section 5 presents organisational Financial Plan for FY 2018/19 and the deployment
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of financial resources to achieve organisational goals, objectives and programmes;
• Section 6 presents the Organisational Structure and the alignment to strategic delivery
imperatives;
• Section 7 presents Human Capital Management Plan, it outlines key programmes that
JM will implement to ensure the realisation of well-trained, motivated and dedicated
employees;
• Annexures are included to provide additional information to key sections.
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Table of Contents
1. INTRODUCTION ............................................................................................................... 9
1.1 Purpose of the JM Business Plan .................................................................................... 9
1.2 Company Synopsis ....................................................................................................... 10
1.3 Shareholder Compact ................................................................................................... 11
1.4 Shareholder Objectives ................................................................................................. 11
1.5 Economic Cluster Priorities ........................................................................................... 12
1.6 Joburg Market Company Profile .................................................................................... 12
1.6.1 Background/History .................................................................................................... 12
1.6.2 Joburg Market Strategy Overview .............................................................................. 13
1.6.3 Strategic Objectives ................................................................................................... 13
1.6.4 Strategic Objectives ................................................................................................... 14
1.6.5 Strategic Priorities ...................................................................................................... 14
1.6.6 Capability Statement .................................................................................................. 15
1.6.6.1 Facilities .................................................................................................................. 15
1.6.6.2 Core Competencies................................................................................................. 15
1.6.7 Key assumptions ........................................................................................................ 16
2. STRATEGIC ANALYSIS ................................................................................................. 16
2.1 Reflection on Value for Money Market Services ............................................................ 17
2.1.1 Transformation within the fresh produce market contexct ........................................... 19
2.1.2 Challenges encountered in the previous financial year ............................................... 19
2.2.2 Contextual Analysis .................................................................................................... 20
2.2.3 PESTEL Analysis ....................................................................................................... 21
2.2.4SWOT Analysis ........................................................................................................... 23
3.2018/19 IMPLEMENTATION AND PERFORMANCE OVERVIEW ................................... 24
3.1 Measurable programmes ............................................................................................... 24
3.2 Projects Aligned To Priorities ........................................................................................ 25
3.2.1 Company objectives aligned to CoJ priorities and Dipethogo ..................................... 25
3.2.2 Contribution to the Economic Growth Cluster ............................................................. 26
3.3 Key Shareholder Programmes ...................................................................................... 28
3.3.1 Work creation programmes ........................................................................................ 28
3.3.2 Green economy initiatives .......................................................................................... 28
3.3.3 Communication and Stakeholder Engagement ........................................................... 29
3.3.4 Day to day action ........................................................................................................ 30
4.GOVERNANCE IN ALIGNMENT TO KING IV .................................................................. 31
4.1 Joburg Market Strategic Risks 2018/19 ......................................................................... 31
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4.2 Internal Audit ............................................................................................................... 33
5 FINANCIAL MANAGEMENT ........................................................................................... 33
5.1 Fixed Asset Controls and Insurance ......................................................................... 34
5.2 Supply Chain Management......................................................................................... 34
5.3 Cashiering.................................................................................................................... 34
5.4 Budget 2018/19 ............................................................................................................ 34
5.4.1 Overview ................................................................................................................... 34
5.5.1 Finance Key Priorities ................................................................................. 35
5.5.2 Income Statement and Commission revenue ............................................ 35
5.5.3 Core and Rental Revenue ............................................................................ 36
5.5.4 Total Revenue/total Expenses .................................................................... 36
5.6 Operational Expenditure .................................................................................... 38
5.6.1 Personnel Costs .......................................................................................... 38
5.6.2 Other Operating Expenditure ...................................................................... 39
5.6.3 Surplus ......................................................................................................... 39
5.6.4 Expenditure Medium Term Budget for 2015/16 – 2018/19 Financial years .... 39
5.7 Capital Projects ................................................................................................... 41
5.7.1 Source of Funding ....................................................................................... 42
6 Organisational Structure ........................................................................................... 43
6.1 Office of the CEO ........................................................................................... 43
6.2 Strategy and Transformation .......................................................................... 44
6.3 Agri - business ............................................................................................... 46
6.4 Core Operations ............................................................................................ 47
6.5 Human Resources and Compliance ............................................................... 48
6.6 Finance .......................................................................................................... 50
7. Human Resource Management Plan ..................................................................... 51
7.1 Human Resource Development (HRD) .............................................................. 53
7.1.1 Skills Priorities for JM ................................................................................. 54
7.1.2 Employment Equity ......................................................................................... 56
ANNEXURE 1: JM 2018/19 SCORECARD ......................................................................... 57
ANNEXURE 2: CROSS CUTTING ACTIVITIES .................................................................. 66
ANNEXURE 3: EXECUTIVE MANAGEMENT TEAM .......................................................... 69
ANNEXURE 4: SERVICE DELIVERY AGREEMENT BETWEEN THE COJ & COMPANY . 73
ANNEXURE 5: ORGANISATIONAL STRATEGIC RISK REGISTER ........................... 74
ANNEXURE 6: STAKEHOLDER ENGAGEMENT STRATEGY AND PLAN ................... 83
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Glossary of Terms
APAC Agricultural Produce Agents Council REMCO Human Resources and
Remuneration Committee
BBBEE Broad Based Black Economic
Empowerment RSA Republic of South Africa
BEE Black Economic Empowerment SADC Southern African Development
Community
CAPEX Capital Expenditure SANAS South African National
Accreditation System
CASP Comprehensive Agricultural Support
Programme SAUFM
South African Union of Food
Markets
CB Commission Business SCM Supply Chain Management
CEO Chief Executive Officer SDBIP Service Delivery and Budget
Implementation Plan
CFO Chief Financial Officer SEDA Small Enterprise Development
Agency
CoJ City of Johannesburg SETA Sector Education Training
Authority
SHE Safety, Health & Environment
CPI Consumer Price Index SHU Shareholder Unit
CSI Corporate Social Investment SLA Service Level Agreement
DED Department of Economic
Development SMME
Small Medium and Micro
Enterprise
EE Employment Equity SPS Sales Processing System
EPWP Expanded Public Works Programme TG Targeted Groups
EXCO Executive Committee UNISA University of South Africa
FPM Fruit Produce Market W&R Wholesale and Retail
GAP Good Agricultural Practises WITS University of the Witwatersrand
GDAR
D
Gauteng Department of Agriculture
and Rural Development WUWM
World Union of Wholesale
Markets
GDED Gauteng Department of Economic
Development YARD
Youth in Agriculture and Rural
Development
GDS Growth and Development Strategy
GIBS Gordon Institute of Business Science
GRAP Generally Recognised Accounting
Practices
HACCP Hazard Analysis and Critical Control
Points
HIV/AI
DS
Human Immunodeficiency Virus
Infection / Acquired
Immunodeficiency Syndrome
HR Human Resources
HRCOS
A
Human Resource Council of South
Africa
HRD Human Resource Development
HSD Health and Social Department
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IDC Industrial Development Corporation
IDP Integrated Development Plan
ILGM Institute of Local Government
Managers
IoD Institute of Directors
IT Information Technology
JM Joburg Market
JMPD Johannesburg Metropolitan Police
Department
JPC Johannesburg Property Company
LLF Local Labour Forum
LSM Living Standards Measure
MANC
O Management Committee
ME Municipal Entity
MFMA Municipal Finance Management Act
MMC Member of the Mayoral Committee
MotF Market of the Future
MOU Memorandum of Understanding
MSA Municipal Systems Act
NAFU National African Farmers Union
NAMC National Agricultural Marketing
Council
NGO Non-Governmental Organisation
OH&S Occupational Health and Safety
OPCAR Operation Clean Audit Report
OPEX Operational Expenditure
PDA Public Development Authority
PLWD People Living with Disabilities
PMA Produce Marketing Association of
America
PMO Project Management Office
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1. INTRODUCTION
1.1 Purpose of the JM Business Plan
The purpose of this Business Plan is to lay out the strategic and operational direction of the
JM and to capture the necessary strategic, financial, and operational and resource plans
to support this direction. As such, the document becomes an engagement document for
discussion with JM stakeholders. The plan covers the financial period from 1 July 2018 to
30 June 2019, with a focus on step-change, transformational performance during the year.
The plan will be reviewed in line with the requirements of the CoJ Business Planning and
Review Cycles. A secondary purpose of the plan is to ensure compliance to the requirements
of the Municipal Finance Management Act (MFMA) 56 of 2003, National Treasury
regulations, and to support strategic national, provincial, CoJ and internal Company policies.
JM has selected in principal the strategic thrust towards becoming a SMART market. Being
a SMART market will entail the implementation of a number of technologies which will enable
the functionality depicted in the illustration below:
JM has identified a number of strategic windows to pursue within which the development of
the various SMART market concepts may be deployed.
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1.2 Company Synopsis
The JM renders a series of services and provides amenities which facilitates the trading of
fresh produce. On a daily basis, approximately 11,000 buyers trade at the JM. In addition
approximately 6,000 producers are marketing their produce through the JM.
In FY 2017/18 the JM projects to achieve an operational income of R438m and an operating
surplus of R65m after taxation.
JM currently employs 328 individuals in six divisions namely; Finance, Strategy and
Transformation, Agri-business, Core Operations and Compliance and Human Resources.
The strategic programmes and projects embedded in the business plan are as follows:
Investment in infrastructure – R1.2 billion infrastructure spend by 2022
Investment in creating expertise
Creating trading space for primary and secondary fresh
produce business growth
Sales Halls extensions and vacant land usage
Delivering dignity and support SMME growth
Mandela Market Prcinct
Building JM as regional market and creating jobs
Export and Entrepreneur support centre
Innovation through ICT applications, WIFI & RFID
backbone support
Sales Halls extensions-vacant land usage
Delivering BEE and support &
growth in farming
Urban Farming
Taking hands towards development
Industry Round Tables
Strategic windows of opportunity towards 2021/22
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Transformation at farm levels through targeted programmes and incentives
Maximize revenue to turnover R10 billion per annum by 2022
Good governance
1.3 Shareholder Compact
The shareholder compact/ service delivery agreements governs the relationship between the
CoJ as the Shareholder and the JM as an entity.
1.4 Shareholder Objectives
JM strives to ensure that strategic objectives are aligned with the broader development
objectives across the three spheres of government and the following policy documents:
National Development Plan (NDP) 2030;
CoJ Growth and Development Strategy 2040;
Integrated Development Plan (IDP) 2017/18 to 2020/21;
Service Delivery and Budget Implementation Plan (SDBIP) 2018/19; and
CoJ: key performance indicators that are standard and compulsory for all
departments and entities.
The new strategic thrust of the CoJ has the following components:
Vision
“A Joburg that works is a South Africa that works”.
Mission
To create an enabling economic environment by making Joburg more responsive in the
delivery of quality services.
Strategic Outcomes:
Outcome 1: A growing, diverse and competitive economy that creates jobs
Outcome 2: An inclusive society with enhanced quality of life that provides
meaningful redress through pro-poor development
Outcome 3: Enhanced, quality services and sustainable environmental practices
Outcome 5: Caring, safe and secure communities
Outcome 6: An honest, transparent and responsive local government that prides
itself on service excellence
Mayoral Priorities
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Priority 1: Promote economic development and attract investment towards
achieving 5% economic growth that reduces unemployment by 2021.
Priority 2: Ensure pro-poor development that addresses inequality and poverty
and provides meaningful redress.
Priority 3: Create a culture of enhanced service delivery with pride.
Priority 4: Create a sense of security through improved public safety.
Priority 5 Create an honest and transparent City that fights corruption.
Priority 6: Create a City that responds to the needs of citizens, customers,
stakeholders and businesses.
Priority 7: Enhance our financial sustainability.
Priority 8: Encourage innovation and efficiency through the Smart City
programme.
Priority 9: Preserve our resources for future generations.
1.5 Economic Cluster Priorities
JM is supporting the Economic Growth Cluster mainly through the economic objectives of
the IDP priorities and GDS outcomes, namely:
Support the alignment of City plans and policies towards achieving a 5% economic
growth rate and to bringing down unemployment to less than 20% by 2021.
Support and promote the development of Small Medium Micro Enterprises (SMMEs).
Facilitate the creation of an enabling environment that attracts investment and provide
dedicated incentive packages for investors, with a focus on the Inner City.
Entrenching Johannesburg as a leading tourism destination brand in collaboration with
key stakeholders.
Enhanced collaboration with public and private sector stakeholders.
Ensure business regulation, compliance and enforcement of the informal trade sector.
1.6 Joburg Market Company Profile
The JM Company profile is set out below.
1.6.1 Background/History
JM was established in 1893 as a fresh produce market situated at the Market Square in central
Johannesburg, where three thousand people congregated to trade in fresh produce. The
economic boom emanating from the Gold Rush era resulted in the rapid growth of the City
and subsequently the trading of fresh produce. To accommodate growth, new facilities were
built around Newtown (Johannesburg) in 1913.
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As trading increased over the years, the Newtown premises relocated to the current 64 hectare
site in City Deep. The Company which is 100% owned by the CoJ Metropolitan Municipality
operates on a commission-based business model where producers deliver their produce to
market agents who in turn sell to buyers.
The Company has operated in the City Deep trading hub since 1973. This facility has
generated substantial revenue for the City and continues to do so daily, with a growing export
arm within the SADC region. The facility is starting to show signs of decay and the trading floor
space has become insufficient. The entity has not kept up with the growing demands of the
industry and this business plan will demonstrate how the strategy aims to refocus and
transform the Market to ensure its sustainability and relevance as a source of food and key
contributor to Food Security.
1.6.2 Joburg Market Strategy Overview
The key elements of the JM Strategy are captured below;
Mandate
The Company is mandated to manage and operate a market facility through the provision of
premier quality facilities and complementary services to the fresh produce industry. This will
include the following;
Provision and management of profitable facilities and services for the distribution of
fresh produce;
Ensuring a competitive trading platform for fresh produce trading;
Enabling market access, sustainable availability and affordable fresh produce and,
Ensuring food safety and quality standards thus promoting healthy lifestyles.
Vision
A smart fresh produce trading hub that is globally competitive
Mission
Building a trading complex that catalyses the growth of the City’s economy through an
inclusive business environment
Values
The values of the Joburg Market are the following;
Transparency
Service excellence
Integrity
Innovation
1.6.3 Strategic Objectives
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JM pursues five long term goals which are listed below and linked with the CoJ Priorities
set by the shareholder for 2018/19:
No KPA CoJ Priorities Diphetogo principles
1 Strategic deliverable 1 – Investment in infrastructure – R1.2 billion infrastructure spend by 202122
CoJ Priority 1 - Promote economic development and attract investment towards achieving 5% economic growth that reduces unemployment by 2021. CoJ Priority 2 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: The significant improvement in the ease and experience of doing business in the City
2 Strategic deliverable 2 – Investment in creating expertise
CoJ Priority 1 - Promote economic development and attract investment towards achieving 5% economic growth that reduces unemployment by 2021. CoJ Priority 2 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: The significant improvement in the ease and experience of doing business in the City
3 Strategic deliverable 3 – Transformation at farm levels through targeted programmes and incentives
CoJ Priority 6 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: Increasing the number of SMMEs as suppliers to the City
4 Strategic deliverable 4 – Maximize revenue turnover to R10 billion per annum by 2022
CoJ Priority 7 - Enhance our financial sustainability.-
Finance Pillar: Increase in the collection of revenue to increase funding to City projects
5 Strategic deliverable 5 – Good governance
CoJ Priority 5 - Create an honest and transparent City that fights corruption
Institutional Review Pillar: The structural realignment of the organisation to strategic direction of the administration
1.6.4 Strategic Objectives
In order to contribute towards the achievement of the objectives of the City, Joburg Market
has adopted the following strategic objectives:
Ensure financial sustainability and growth of the entity;
Operate a sustainable resilient premier marketing and trading facility;
Become an agent for socio-economic transformation;
Ensure that our staff are engaged, skilled and motivated
Become a high-performance organisation;
Ensure effective stakeholder engagement.
1.6.5 Strategic Priorities
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JM has adopted a strategy based on achieving key organisational priorities on the basis of
“SMARTNESS” that are aligned to the development objectives of CoJ. They are:
A Clean market place:
o Physical cleanliness and Fabric of facilities
o “Clean Administration”
A Safe market place:
o Security
o OH&S
o Chemical usage/residues & Food safety
o Operating practices
A Market place that is efficient in its systems and services
o Floor space & amenities
o Cold stores and ripening
o Logistics
o IT technology and SMART systems
1.6.6 Capability Statement
JM provides trading facilities and complementary services in order to facilitate the trading of
fresh fruit and vegetables. Whilst this market is being operated in a matured distribution
channel it has the capacity to conduct strategic renewal which will render it a globally
competitive trading hub.
As outlined under Section 1.1 above the introduction of SMART Market technologies will
enable the company to roll out projects and programmes fit for the next generation market
operations. JM has the capacity to implement through its new management team the required
interventions.
1.6.6.1 Facilities
Trade takes place in three Food hubs, namely: Fruit Hub, Potato and Onion Hub and
Vegetable Hub, measuring a total of 75 000m² via a commission system. The Market charges
the producers a 5% commission on all sales concluded on the trading floor. A further
negotiable commission of 7.5% is paid to Market Agents for selling produce on behalf of the
farmer.
JM also provides cold storage services to ensure compliant preservation of large volumes of
produce which is required to be kept within the logistical cold chain. Premises are also being
leased to food related enterprises serving as a complementary feature in serving the
requirements of the thousands of buyers visiting the JM site daily.
1.6.6.2 Core Competencies
JM currently holds substantial expertise to enable the high level of services it renders. These
include
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o Financial services,
o Engineering expertise,
o Human resources support,
o Strategic services,
o Risk services,
o Trading and consignment regulation services,
o ICT Systems (SPS),
o Facility management and property administration, and
o SANAS accredited laboratory and food quality and safety inspection service.
1.6.7 Key assumptions
In developing its strategy for 2018/19 JM considered inter alia the following key assumptions
relative to the realities of the macro environment;
It is projected that the population of the City could increase to about 5.43 million in mid-
2021 (Source GSPCR)
It is envisaged that the turnover growth in the next 3 – 5 years would be around 8.6%
per annum
The impact of the drought on the Joburg Market revenue is expected to be minimal in
the next 18 months as ‘La-Nina’ weather conditions are likely to replace the dry cycle
caused by the ‘El-Nino’ weather pattern
The labour environment will be relatively stable
All strategic projects will be funded to ensure execution
Main stream businesses in the food industry will be characterised by formation of
significant BEE partnerships
Competition by direct marketing channel operators will increase
Food inflation will continue to rise above headline inflation
Operating costs of suppliers of fresh produce, service providers to JM and utility
services will increase substantially
2. STRATEGIC ANALYSIS
As part of its recent strategic planning sessions JM invited stakeholders to engage with the
company to ascertain in the current day context what stakeholders are expecting from the
services being rendered by JM.
Two critically important concepts were identified which can be listed as follows.
Firstly quality Market services that should be regarded as Value for Money Market Services
and secondly Transformation within the Market system.
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2.1 Reflection on Value for Money Market Services
The producer of fresh produce has at his/her disposal a number of competing marketing
channels through which fresh fruit and –vegetables can be channeled to the end user and
consumer.
It is however important to distinguish between these channels. In cases of direct marketing
where distribution is not being conducted through the municipal fresh produce market certain
features of these transactions are important to note. Direct marketers would normally take only
certain portions of a producer’s harvest, i.e. only certain sizes, grades etc. at a fixed price
negotiated before delivery. Most often the buyer would require credit terms, promotional
contributions, store returns, etc.
Conversely the municipal fresh produce market will always be accepting produce emanating
from the entire crop. The latter obviously includes all grades and sizes and quantities of fresh
produce. In this case the prices are not predetermined and consequently the producer is
utilizing what is pretty much referred to as spot market trading. A sound trading environment
with proper controls – checks and balances – are thus needed as the price of the produce is
yet to be discovered through the principles of supply and demand. From this perspective
Joburg Market become known as the Stock Exchange for Fresh Produce. In the South African
situation, local authorities serves as regulator of trading through its central IT trading systems
and the application of trading rules through a bylaw. In this is transparency and the
accountability of trading agents has created trust within the ranks of market users and farmers
whom especially prefer the protection municipal markets offer in this regard. The Market
Manager serves as referee in disputes and provides both the farmer/buyer and other users as
an avenue for dealing with queries which are resolved within the application of administrative
justice principles through the market bylaws and associated trading rules.
At this juncture it is also important to consider the cost of marketing produce through a fresh
produce market. It is important to note that nor does the market or the market agent take
ownership of produce. The market authority facilitates the trading and handling of produce for
which the farmer will remunerate the market through the payment of a market due or market
commission. The farmer will compensate the agent for trading the produce on his/her behalf
through an agent’s commission. The history of the commission levels come over many
decades, however for the purposes of this discussion it will suffice to explain two important
periods. Prior to 1992 when the Fresh Produce Industry was deregulated markets were
allowed to collect an ad valorem market due on the gross value of each consignment sold.The
market agent in turn was permitted the collection of a 7.5% agent’s commission for services
rendered. Farmers would pay in total a maximum of 12.5% to conduct marketing through a
municipal market. The deregulation alluded to brought about a slightly new dispensation.
Commission rates were no longer regulated and it was agreed that market agents may
privately negotiate with their suppliers a commission rate. Market authorities indicated that
they would continue to determine market dues within the framework of their municipal budget
systems. In practice the market due remained unchanged and only the introduction of Value
Added Tax by central government became a feature of this charge.
Over many years the question regularly arose as to what value for money the producer is
getting for the 5% market due paid by him/her?
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The nature of the fresh produce market was discussed above and against that backdrop the
‘value for money services’ is now discussed. Markets must provide certainty and thus
accountable trading systems.
- The central trading system of the market is a sophisticated purposed designed
electronic trading methodology. Every element of the consignment is captured and
managed through this system and consequently is every function performed by the
agent and the market authority in real time mode.
- The market authority conducts a dedicated financial accounting service inclusive of a
cashiering system linked to a trust account system which enables the payment of
proceeds on every consignment the following working day. This is the fasted payment
system in the industry and offers multiple advantages to producers.
- Protection of the farmer is further embedded in the assurance systems which enable
traceability to determine whether fair prices were achieved and utmost care was taken
by the agent in dealing with what the farmer entrusted to the agent.
Firstly consignment control ensures that each and every consignment to its finest details was
accurately captured and traded through the system. This enables a trustworthy trading history
and return for the farmer.
Laboratory and inspection services ensure that the farmer do not suffer undue losses of stock,
etc. Joburg Market has invested in the development of a SANAS accredited laboratory.
Produce discarded are being dealt with in scientifically sound practices and suitable audit trail.
Producers and agents are not charged additionally fees for the disposal of written off produce.
Dispute resolution is conducted and the Market Director (CEO) may order compensation of
an aggrieved party. Transgressions by market agents are also being dealt with through this
avenue.
- Cleansing and sanitization of the market facilities ensures a safe food center serving
both the supply and demand side of market clients.
- Physical security services supported by a most modern and extended CCTV system
ensures protection of the entire market facility serving farmers especially overnight
when their consignments are delivered to the market.
- Cold stores and ripening facilities are maintained and upgraded to ensure the
availability of these vital support services to farmers and their agents.
- Marketing services and agri-business support services are conducted to inform
farmers and attract buyers to the market to ensure a vibrant market place to the
advantage of producers.
This also includes the dissemination of market trading results on which South African
Producers can always rely.
Over many years producers articulated their requirements from market authorities as follows:
“Fresh produce markets should be clean, safe and efficient in their systems serving the
producer of fresh produce”.
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In our quest to achieve that Joburg Market manages and invest in achieving the value for
money services it renders. The key value for money services were briefly discussed above.
2.1.1 Transformation within the fresh produce market contexts
Transformation will entail the following:
Change management
To implement a multi phased approach to enable organizational change relevant to
the transformation objectives set for JM
Targeted procurement processes
Increase the share of targeted beneficiaries (women, youth & disabled) in rendering
goods and services to JM through its SCM system
Sustain Black agents (Current emerging agents)
Introduce support measures to sustain emerging agents
Increase the number of Black agents
Utilize a new standard policy to canvass candidates with the view to establish new
agents from targeted groups as beneficiaries
Access for Black farmers to JM support programmes
Enable greater access for emerging farmers (including women, youth & disabled) for
trading their cultivated produce at JM
2.1.2 Challenges encountered in the previous financial year
A number of challenges were faced during the financial year:
JM faced a number of challenges which includes
- Core business shortfalls pertaining to the following:
o Project and programme implementation failure
o Legal and legislative noncompliance
o Business interruptions as a result of standby power plant failures
o Leadership underperformance
o Critical shortage of trading space
During its strategic breakaway the Board of Directors considered these challenges and
accepted the principle of EXCO developing its resolutions along the concept of an
implementation Lekgotla which is aimed at resolving the mentioned challenges.1 Industry
Trend
s
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2.2.2 Contextual Analysis
The South African agricultural sector is composed of three main industries namely field crops,
horticulture and animal production. All form part of the global economy through amongst
others; their significant contribution to earnings of foreign exchange. According to the
Department of Agriculture Forestry and Fisheries (DAFF, 2017), the gross value of agricultural
production was R263, 2 billion in 2016/17. During the same period, the agricultural industry
trends analysis shows that the horticultural sector, from which the JM generates its revenue,
was valued at R72.2 billion. The deciduous industry generated R20 billion, compared to R16.2
billion in 2015/16. The citrus industry generated R14.8 billion, compared to R12.6 billion in
2015/16. Subtropical fruit industry generated a gross value of R4.3 billion, compared to R3.8
billion in 2015/16 trading season. The vegetables sector inclusive of potatoes generated R21
billion, compared to R17 billion in 2015/16 trading period. All sectors experienced growth in
revenue generated in 2016/17 when compared to its performance in 2015/16.
The Joburg Market remains a key player in the horticultural industry trade. . During the 2016/17
trading year the JM traded more than 1.3 million metric tons of fresh produce and generated
R6.7 billion in revenue. The market serves as a trading platform for fresh produce destined to
both the local and international markets, particularly the South African Development
Community (SADC) region. However, considering the Free Trade Area (FTA) agreement
ratified by African member countries in Rwanda during the 2018 phase 1 negotiation, once
the FTA is fully implemented the JM is poised to expand its customer base and increase its
produce destination beyond the SADC region..
In addition to its trade with the rest of the African continent and to a limited extent with
developed countries of the world, the JM business is directly impacted on by various economic
factors and other agribusiness industry trends. Forming part of these developments and trends
which are key features of the industry are:
Growth of the middle class which is estimated at 5.6 million in South Africa with about
52% of the people residing in Gauteng (Simpson, 2016). This will result in concomitant
rise in demand for meat products and other value added products such as precooked
vegetables, fruit and vegetables based beverages Growth in middle class and
migration of rural population to urban areas - urban population accounts for 64% (29
million) of the total population (56 million), fuelling demand for food products in urban
areas where demand exceeds urban areas primary production output.
Population growth which is estimated at 1.2 billion in Africa and associated rise in food
demand.
Increasing demand for convenient, processed and healthy foods, influenced by a rise
in people who are becoming sophisticated and health conscious.
Increased production and productivity to reach better economies of scale attributed to
amongst others; advancement in irrigation systems, adoption of biotechnology.
Such as high yielding cultivars and synthetic fertiliser use.
Decline in subsistence production of food and increase commercial production and
demand for purchased food
Constrained limited natural production resources (particularly water and productive
land), posing a threat on food security
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Increase in demand for certain food types, particularly animal products in SA and
certain horticultural products in Africa.
Price increases of production inputs, especially fuel, fertilizers, pesticides and labour.
Possible reduction in the farming activities due to uncertainties around talks of land
expropriation without compensation which might as well lower investor confidence
Appreciation of the Rand, which if sustained is likely to result in reduced costs of
imported production inputs, implements and machinery, however diminishing
competitiveness of exporting industries.
A decline in the job opportunities in the agricultural sector mainly due to closing down
of farming enterprises and the sector becoming more capital intensive for
competitiveness reasons.
Incidence of foodborne diseases such as listeriosis, reported to be in part caused by
poor compliance to food safety protocols by food processing facilities. .
In line with outcomes of Operation Phakisa on Agriculture, Rural Development and Land
Reform, the Department of Agriculture Forestry and Fisheries (DAFF) was allocated R581.7
million by the National Treasury to create and support 450 sustainable and profitable black
commercial farmers in prioritised value chain for the period of five years, 2017/18. It is
expected that the JM will be part of these initiatives by absorbing some of the fresh produce
that are destined to the markets.
The South African economy is valued at R3.4 trillion or 295 billion USD in terms of nominal
Gross Domestic Product (GDP). The economy grew by 1.3% % in 2017 as compared with
2016 where an overall economic growth was 0.3%. The 2017 GDP figure exceeded the
National Treasury’s initial projection of 0.7% and later a revised figure of 1% per annum. The
greatest contributor to the GDP amongst all the sectors of the economy was Agriculture at
17.7% and was followed by mining at 4.6% and other sector of the economy. . The sector’s
contribution to the GDP in 2017 was R263 billion, which translated to 2.4%. The sector showed
a significant improvement in outputs after two years of poor performance (2015/16) as a result
of country extreme weather patterns of droughts experienced in the last 112 years. Agriculture
remains a key contributor to SA’s developmental challenges such as job creation mainly in the
rural areas and economically depressed part of country. Employment in agriculture (% of total
employment) in South Africa was at 4.8 % in 2017 as compared to 5.59% during 2016. The
drop in employment in the previous financial period is attributed to workers layout as a result
of extreme weather conditions that came with drought. The Sector offers employment
opportunities to a significant section of the population that is elementary, unskilled and also
the skilled. The labour market statistics shows that the agricultural sector skilled labour is on
the rise. There were 66 000 skilled labour in 2016 and the number has increased to 83 000 in
2017. The agricultural sector is also important for ensuring the country’s food security. In
addition to commercial-scale production, emerging farmers and subsistence farmers make
further economic contributions, although these are difficult to quantify.
2.2.3 PESTEL Analysis
A PESTEL Analysis was also conducted to determine trends, factors and variables in the
macro-environment that may impact on the organisational within the next 18 months. The
summarised PESTEL Analysis for the Joburg Market is depicted below.
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Political Economic
Governmental policies o Land reform – issues of expropriation o Best practise in BBEEE
Foreign Market Risks o Trading in foreign countries by JM
clients and governmental support systems
Border and customs delays Increased pressure to ensure full
compliance to legislative provisions as well as to codes such as KING IV
National Economy remain at a low growth rate (<1%) hence consumers will spend mostly on staples (Potatoes/Onions/Tomatoes)
Higher than expected food inflation (12%)
Decrease in agricultural employment
Lower prices anticipated due to increased production yields on most commodities
Increase in demand for staples such as potatoes and apples.
Increase in demand for full spectrum of quality fruits
Social Technological
Healthy eating habits o Affluent and middle income consumers
will continue to spend more on prepared produce
Increasing urbanisation leading to inward migration to Johannesburg (10000/month);
More woman and the youth will seek opportunities in the fresh produce industry
Increased consumer pressure on healthy and safe fresh produce commodities (Post Listeriosis recovery measures)
Continued movement to higher Living Standards Measure (LSM) groups resulting in changed food preferences;
Handling and storage of produce in line with international standards
Development of IT technology capacity applicable at JM sales/control systems
Increased expenditure on security measures. (Equipment with high technological content)
New cold storage and ripening advancements
Development of JM SMART MARKET systems
Broadband and Wi-Fi
Environmental Legal
Scarcity of land and water to sustain farming
Pressure from consumers for producers to adopt environmentally friendly farming methods
Pesticide and chemical residue control by producers
Increased pressure to comply to all legal compliance matters
Increased pre-emptive food safety and quality measures
JM PESTEL Analysis
In dealing with the impact of factors identified in the macro enviroment JM is positioning its
self as follows:
Establishing secure and effective trading methodologies and superior technologies to
support the logistics of the market system.
Introduce risk control measures on fresh produce supply and food safety.
To promote the market as a central demand centre and aim at a achieving the widest
possible assortment in width and depth of fresh prduce categories;
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Instil a culture of compliance in all spheres of legal and legislative compliance.
2.2.4 SWOT Analysis
A SWOT Analysis was also conducted to determine factors that may impact on the micro-
environment within the next 18 months. The outcome of a SWOT Analysis conducted in
the environment is as depicted in the table below;
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JM SWOT Analysis
In order to address the key weaknesses and threats identified above, JM will pursue the
following interventions:
Intervention Weakness/Threat
Facility improvements - Trading space increase - Mandela Market precinct - Pallet pool
Ageing infrastructure
Inadequate floor space
Loss of market share
Competition/Alternative Marketing methods
Stakeholder engagement programmes Ineffective stakeholder engagement
Development of an adequate structure Rising operating costs
Effective application of company policies and corporate governance
Exposure to fraud and corruption (internally & externally)
Ensure compliance to legislative and regulatory requirements
Over-regulation of the trading environment
3. 2018/19 IMPLEMENTATION AND PERFORMANCE OVERVIEW
3.1 Measurable programmes
JM introduced a new performance management system for its leadership core during 2015/16.
The system was tested and refined to ensure a clear performance activity chain and effective
integration with the Company scorecard. The Company scorecard drafted for 2018/19 is
aligned with the following:
National Development Plan (NDP) 2030;
CoJ Growth and Development Strategy 2040;
Integrated Development Plan (IDP) 2016/17 to 2020/21;
Service Delivery and Budget Implementation Plan (SDBIP) 2017/18; and
CoJ: Economic ClusterBusiness Plan 2018/19.
The Capital Information Management System of CoJ
GDS - The new strategic framework
CoJ: Shareholder Compact with the Company
Legislative imperatives – MFMA, MSA and National Treasury regulations.
CoJ: Dipethogo programme
The complete Company scorecard is included in this business plan as Annexure 1.
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3.2 Projects Aligned To Priorities
3.2.1 Company objectives aligned to CoJ priorities and Dipethogo
JM will pursue projects and programmes linked to the GDS and IDP. The Table below shows the alignment of JM Programmes/Projects to the
priorities as well as the Dipethogo programme. Programmes/projects are linked to the CEO’s scorecard:
No JM Goals CEO – KPI’s CoJ Priorities Diphetogo principles
1 JM Strategic deliverable 1 – Investment in infrastructure – R1.2 billion infrastructure spend by 2021
Finalize planning and design for phase 1 of the Mandela Market precinct by 30 September 2018.
CoJ Priority 1 - Promote economic development and attract investment towards achieving 5% economic growth that reduces unemployment by 2021. CoJ Priority 2 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: The significant improvement in the ease and experience of doing business in the City
2 JM Strategic deliverable 2 –
Investment in creating expertise
Create 100 EPWP job opportunities by 30 January 2019.
CoJ Priority 1 - Promote economic development and attract investment towards achieving 5% economic growth that reduces unemployment by 2021. CoJ Priority 2 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: The significant improvement in the ease and experience of doing business in the City
3 JM Strategic deliverable 3 –
Transformation at farm levels through targeted programmes and incentives
Develop a support programme for black farmers from targeted groups by 30 September 2018.
CoJ Priority 6 - Ensure pro-poor development that addresses inequality and poverty and provides meaningful redress.
Economic Development Pillar: Increasing the number of SMMEs as suppliers to the City
4 JM Strategic deliverable 4 – Maximize revenue to turnover R10 billion per annum by 2022
Achieve a turnover of R7.2 billion for 2017/18
CoJ Priority 7 - Enhance our financial sustainability.- Finance Pillar: Increase in the collection of revenue to increase funding to City projects
5 JM Strategic deliverable 5 – Good governance
Resolution of External Audit findings raised in prior year’s management report.
CoJ Priority 5 - Create an honest and transparent City that fights corruption
Institutional Review Pillar: The structural realignment of the organisation to strategic direction of the administration
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3.2.2 Contribution to the Economic Growth Cluster
JM forms part of the Economic Developments Cluster. The Company has therefore aligned its activities with the cluster to ensure the envisaged
synergies for this unique cluster.
Cluster
outcome
Key flagship
programmes Indicator JM Projects : 2018/19
5% Growth Economic
development
strategy
Increase in trading at JM
Attract more Exporters of produce
(SADC Buyers and their trade offices at JM
through JM Export Desk)
Trading Space optimization project
5% Growth City Deep
Development hub City Deep as trade hub Trading Space optimization project
Communications
and stakeholder
management
Compliant trading and emerging entrepreneur
development
Forums with Stakeholders
Trading Space optimization project
5% Growth Informal sector
development
Compliant trading and emerging entrepreneur
development Agri-business ventures
Open tender
system
Economic
development
strategy
Targeted procurement practises Development of emerging entrepreneurs
Small business
incubators
Economic
Development
Strategy
Projects / Programmes in support of Emerging
Producers, Black agents , Black Farmers Black
traders, Emerging Tenants on JM site
JM training programme - Partnerships with the
CoJ industry stakeholder.
Adherence to the CoJ Transformation Policy
Increase share of fresh produce received
from Black FarmersPromoting Emerging
Agents and Entrepreneurs on site through
the new Co-operatives
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Cluster
outcome
Key flagship
programmes Indicator JM Projects : 2018/19
Small business
incubators
Economic
Development
Strategy Targeted procurement practises
Development of emerging entrepreneurs
(Women, Youth and Disabled)
Open Tender
system
Informal Sector Target groups Development of Targeted Groups
Efficiencies Infrastructure
vandalism
Refine operations of extended CCTV system Refined operations of CCTV centre
5% Growth Market trading floor
and Mandela Market
Extensions
Finalize the design review Complete new timeline and specifications
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3.3 Key Shareholder Programmes
The CoJ has adopted a number of focus areas:
Section 3.3.1. to Section 3.3.2 cover these initiatives:
3.3.1 Work creation programmes
Having firmed up the five outcomes and nine strategic priorities for the IDP cycle, the Executive
Mayor identified 40 interventions for implementations during the 2018/19 financial year and
outer years. He called these ‘Diphetogo’. Business Plans of entities and departments are
expected to respond to relevant Diphetogo interventions including how they plan to reprioritise
funding towards them as they take precedence.
The Diphetogo programmes for Economic Development are as follows:
Impact to be Achieved Target
The significant improvement in the ease and
experience of doing business in the City.
Achievement of targets of all Business-Friendly
Service Standards
Implementation of investment facilitation
programme
Establishment of One-stop-shop for Investors to
offer red-carpet service
Expanding the reach and rollout of the basket of
services offered to SMMEs via the City's
Opportunity Centres.
2 Operational Opportunity Centres per region
offering full basket of services.
Increasing the number of SMMEs as suppliers to
the City
Implementation of new SCM regulations to
promote SMMEs
The rollout of the City's Work seekers' Database Fully operational Work seeker's Database
accessible to all City residents
The rollout of a Youth Skills Program The achievement of 100 000 young beneficiaries
of this program.
The aggressive rollout of free Wi-Fi services to the
City's residents
Provision of free Wi-Fi to all identified economic
nodes, townships and informal settlements.
3.3.2 Green economy initiatives
Joburg Market is collaborating with CoJ to harvest waste in support of the Bio-Gas Project
being driven through EISD.
• Cleaning the Market of refuse
o Cleaner market;
o Lower refuse collection and cleaning costs;
o The Bio digester is being investigated as an ideal solution.
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3.3.3 Communication and Stakeholder Engagement
To enhance Communication and Stakeholder Engagements at the Joburg Market, a integrated
Stakeholder and Engagement Strategy and Plan has been developed. After approval by the
JM Board, key programmes in the plan will be rolled out.
JM will therefore be focussing on the CoJ Nine Priorities and Programmes based on its core
mandate. This will include the following:
Programmes Action Comment
Market Agents Regular IMASA meetings
Issue management (positive/negative)
Provide feedback promptly
Create strategic partnerships – Inter alia through the JM Economic Development Committee
Existing IMASA Forum
Explore BEE Market Agents funding opportunities (investment)
Host periodic Strategic Meetings
Continental Skills transfer
Encourage exchange of out of season produce
Operational buy-in
Awareness on Africa agenda
Farmers (big/small) Outreach programmes which encourage in-bound visits to showcase JM skills base
Encourage to consign quality produce to JM
Roll out of the JM Farming project
No transformation
No access strategy
Funding for entrant farmer
Arable CoJ land in the south of Johannesburg
Buyers (big/small) Regular contact with 20 top buyers
Collaborate with customer care
Source budget allocation
Improve customer care approach
City stakeholder- COJ Mayor & MMC: Economic development
Constant appraisal of JM processes/ opportunities
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3.3.4 Day to day action
Stakeholder
expectations
CoJ
Mayoral
Prioritie
s
Day-to-
Day
Functions
Key
Performance
Indicator
Baseline
(2017/18)
Target
2018/19
financial
year
2017/18 Budget
(per programme) 2018/19 target
Cape
x
Opex Q1 Q2 Q3 Q4
“F
resh
pro
du
ce m
ark
ets
sh
ou
ld b
e c
lean
, s
afe
an
d e
ffic
ien
t in
their
sy
ste
ms
an
d s
erv
ice
s in
se
rvin
g t
he f
resh
pro
du
ce
clien
t”.
No 1
and No
6
Marketing Compliance to
stakeholder
engagement
plan
100%
compliance
100%
complia
nce
- R160K 25%
compliance
50%
compliance
75%
compliance
100%
compliance
I No 3
and No
8
ICT Availability of
key systems
(SPS, JDE
and E-mail)
98%
availability
98%
availabil
ity
- R5.5M 98%
availability
98%
availability
98%
availability
98%
availability
No
4Securit
y
Security Security and
CCT V
surveillance
hours of
availability
24 hours
availability
round the
year
24
hours
availabil
ity
round
the year
- R23.3K 24 hours
availability
round the
year
24 hours
availability
round the
year
24 hours
availability
round the
year
24 hours
availability
round the
year
No 6
and No
9
Repairs
and
Main-
tenance
Number of
targeted
maintenance
interventions
implemented
30%
targeted
mainte-
nance
interven-
tions
implement-
ted
100%
targeted
mainten
ance
interven
tions
impleme
nted
R29.4M 25% of
maintenan
ce plan
50% of
maintenan
ce plan
75% of
maintenan
ce plan
100% of
maintenan
ce plan
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Strategic Renewal of JM A new Wave towards 2021
4. GOVERNANCE IN ALIGNMENT TO KING IV
The King Code (IV) contains a supplement relevant to municipalities. In this regard JM is set to
align to the principles as outline in King IV and a conversion exercise is due to be concluded by 31
October 2018.
In particular JM will ensure that it complies in particular with Principle 5.2 of the above
supplementary provisions to ensure compliance to Local Government Legislation as well as the
objectives of the CoJ.
4.1 Joburg Market Strategic Risks 2018/19
In a workshop hosted by Board, the following strategic risks were identified as key in managing
the risk profile of the Company:
Key risk no 1:
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Strategic Renewal of JM A new Wave towards 2021
Key risk no 2:
Key risk no 3:
Further details of the strategic risk register, with risk owners, accountabilities and timelines is
attached in this document as Annexure 5.
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Strategic Renewal of JM A new Wave towards 2021
4.2 Internal Audit
JM has an independent Internal Audit Unit, which reports functionally to the Audit and Risk
Committee of the Board and administratively to the Chief Executive Officer. The Unit carries out
its functions in accordance with the approved Internal Audit Charter.
The scope of work of Internal Audit is to determine whether the organisation’s network of
governance, risk management and control processes as designed and presented by management
is adequate and functioning in a manner that ensure that:
Risks are appropriately identified and managed
Financial and operational information is accurate, reliable and timely
Employees’ actions are in compliance with the applicable laws and regulations
Resources are acquired economically and used efficiently and effectively,
Assets are safeguarded
Monitor the resolution of the Auditor General findings
In developing its work plan, the Internal Audit Unit follows a risk-based approach, taking into
account the following:
Strategic focus areas as contained in the Business Plan
Strategic risk register and operational risk registers
COJ Group Internal Audit requirements
Prior years’ external and internal audit findings
Legislative requirements.
The Internal Audit Plan is subject to approval by the Audit and Risk Committee.
5 FINANCIAL MANAGEMENT
In line with the City’s approved financial development plan (FDP), GDS, IDP, nine priorities and
the principles of Diphetogo, the financial management function is the key driver to achieve financial
sustainability in the JM. It is responsible for the organization aspects of its financial health. It is
accountable for the resources entrusted to it, including funding, expenditure management, and
cash-flow management including budgets and accounting responsibilities. It also involves the
implementation of business process engineering to effect strong internal controls.
It ensures that all funds are spent in accordance with JM policies and procedures, and operating
needs met within available budgets. Its responsibility also includes financial management, and
development of investment strategies and financial reporting and expenditure monitoring. It
encourages units to develop an oversight process that builds on best practices. It determines all
funding sources, expenditures and reserves available for future use (excluding those already
committed and budgeted for current period). Furthermore; it includes all outstanding commitments
to unit-wide programs, capital projects. The department also provides management with
information necessary to make strategic decisions at any time during the year.
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Strategic Renewal of JM A new Wave towards 2021
5.1 Fixed Asset Controls and Insurance
The JM Fixed Assets business unit within the Finance structure is tasked and responsible for the
safeguarding and management of its assets and insurance of assets thereof. The management
of the Company’s fixed assets being Property, Plant, Equipment, Investment Property and
Intangibles by means of ensuring that the requirements of the strategic objectives and operational
needs are met with the allocation of a capital expenditure budget. This process entail planning and
proper budgeting of all capital projects, acquisition, maintenance and disposal of scrap and
redundant assets are in terms of the Finance policies and procedures.
All acquisitions and disposals are carried out in line to the requirements of the MFMA and Supply
Chain Regulations. These include among others; maintenance of the Joburg Markets fixed asset
register by means of physical asset verifications, impairments and re-valuations of assets. The
insurance component includes; insurance for business continuity, assets, employees, accidents
and asset loss.
5.2 Supply Chain Management
Supply chain management at JM serves to enhance compliance, improve accountability and
transparency, update measures required to combat fraud in the supply management value chain.
It supports the sound financial management processes in place to improve service delivery. SCM
provides the mechanisms for implementing demand, acquisition, logistics and performance
management.
SCM plays a pivotal role by spanning demand, right from the end-customer's requirement to the
suppliers that provide the goods and services to meet the needs. It involves going beyond the
suppliers that interface with the organisation in order to effect improvements. These may include
removing cost, increasing quality or ensuring ethical, environmental or socially responsible inputs.
The Supply Chain’s role in JM is performed in terms of applicable legislative and regulatory
requirements.
5.3 Cashiering
To further ensure an effective cash management system and approach, the cashiering department
supports the business by ensuring that all cash received from customers is safely deposited, all
refunds are deposited to customer’s accounts, all cashiers perform a daily balancing function and
all daily cash is deposited through the officially appointed service providers for banking purposes.
5.4 Budget 2018/19 Overview
The budget for 2018/19 has been prepared using the following key parameters and assumptions:
The revised budget for 2017/18 has been used as the base period for the medium term
budget (MTB)
Key priorities of Economic Growth Cluster;
Integrated Development Plan (IDP);
The service Delivery Budget Implementation Plan (SDBIP)
Financial Development Plan (FDP) and
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Strategic Renewal of JM A new Wave towards 2021
Company’s strategic priorities and business plan
Mayoral Proposed Priority Implementation Plans
Diphetogo principles
The CoJ indicatives have been followed:
CoJ Key Indicatives
5.5.1 Finance Key Priorities
In line with the CoJ long term impact (GDS 2040 related output) is to build a financially and
administratively sustainability and resilient City. Therefore the key priorities of Joburg Market are
as follows:
• Effective budget management – (Costs containment );
• Business process re-engineering;
• IT technology and SMART systems (Inclusive of SMART payment systems).
It is envisaged in order to ensure maximum budget spending the following strategies have been
adopted.
• Improved budget and programme planning: Extensive consultation during target setting;
• Focus on improving supply chain processes;
• Internal monthly expenditure monitoring as an early warning mechanism;
• Effective financial policies and procedures;
• Effective business processes for internal control.
5.5.2 Income Statement and Commission revenue
The following turnover estimates are presented:
• Turnover growth is forecasted down by 2.87% due to improved weather conditions in
2017/18
• Rental of facilities revenue is charged at CPI plus 2%.
Graph 1 below depicts the Revenue over the MTB
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Strategic Renewal of JM A new Wave towards 2021
Revenue over the MTB Period
5.5.3 Core and Rental Revenue
The following trends are foreseen for JM:
• The core revenue for the company consists mainly of commissioning income which
account for more than 80% of the total revenue.
• Rental Income accounts for 14% of the total revenue.
• The implementation of the Smart Market program will ensure revenue base of the
company is enhanced in the future.
5.5.4 Total Revenue/total Expenses
The total Revenue will increase from R414.1 million to R437.9 million in 2017/18 financial year
which represents 5.7% increase. Operating expenditure increases from R318.5 million to R328.9
million which is a 3.3% increase.
Revenue Budget ('000')
2017/18
Approved
Budget
2017/18
Revised
Budget
2018/19 Draft
Budget
2019/20 Draft
Budget
2020/21 Draft
Budget
Rental of facilities 56 217 249 59 670 749 63 352 073 67 262 508 71 413 675
Commission 373 939 461 363 329 533 378 217 550 398 777 431 426 529 540
Other 7 714 449 8 131 030 11 570 105 13 220 948 14 934 879
Total 437 871 159 431 131 312 453 139 729 479 260 887 512 878 094
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Strategic Renewal of JM A new Wave towards 2021
Revenue/expense projections for the next three years
2017/18 Revenue Sources and Ajustment Budget 2017/18
• The core revenue for the company consist mainly of commissioning income which
account for more than 80% of the total revenue.
• Rental Income accounts for 14% of the total revenue.
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Strategic Renewal of JM A new Wave towards 2021
5.6 Operational Expenditure
Three year planned expenditure trend
Planned Expenditure by programme
5.6.1 Personnel Costs
Personnel cost will increase by 6.2% million from R140.5 to R149.2 million in 2017/18. The
increase is due to the population of the new structure. The increase provides for the normal
increases against the usual based on the estimated salary increase (as per SALGA agreement)
and includes only critical vacancies required. Furthermore, salary and medical aid increases will
be above inflation and taken into account.
Priority %
Allocation
2017/18
Approved
Budget
2017/18
Adjusted
Budget
2018/19 Draft
Budget
2019/20 Draft
Budget
2020/21 Draft
Budget
"R" "R" "R" "R" "R"
Enhancing our Financial
sustainability and resilience 10% 5 290 000 5 290 000 28 775 000 64 181 650 33 116 500
Improve Service Delivery &
Culture10% 5 290 000 5 290 000 28 775 000 64 181 650 33 116 500
SMME and Enterprise
Development/Support15% 7 935 000 7 935 000 43 162 500 96 272 475 49 674 750
Promote Economic
Development Investment
GVA 5% by 2021 &
Infrastructure Development
55% 29 095 000 29 095 000 158 262 500 352 999 075 182 140 750
Good Governance 5% 2 645 000 2 645 000 14 387 500 32 090 825 16 558 250
Other Day to Day
Operational expenditure 5% 2 645 000 2 645 000 14 387 500 32 090 825 16 558 250
TOTAL 100% 52 900 000 52 900 000 287 750 000 641 816 500 331 165 000
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Strategic Renewal of JM A new Wave towards 2021
5.6.2 Other Operating Expenditure
The increase in other operating expenditure is as follows:
• Depreciation – The budget increased from R20.6 million to R21.7 million which represent
5.4% increase. This is mainly due to projects being capitalized within the financial year.
The Capital expenditure budget for 2017/18 is R52.9 million.
• Repairs & Maintenance – Increase from R27.7 million to R29.4 million. The increase is in
line with increase of CPI as per the indicatives provided.
• Human Resources and Marketing will increase according to the indicatives provided.
• Operational expenses increase by 4% from 76.7 million to R79.8 million this is due to
reduction in cost in refuse removal that is anticipated by sourcing a supplier via competitive
bidding.
5.6.3 Surplus
The surplus after tax for 2017/18 increased from R56.50 to R64.5 million after tax, which represent
an increase of 14.2%.
Impact on Surplus
Reduction in turnover from R7.4bn to R7.2bn
• Reduction of commission income from R374m to R363m
• No rental income growth
JM Surplus Projection
5.6.4 Expenditure Medium Term Budget for 2015/16 – 2018/19 Financial years
In terms of the Mid-Term Expenditure Framework, the key indicators for FY: 2018/2019 is as
follows:
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Strategic Renewal of JM A new Wave towards 2021
FY2017/2018 ExpenditureBreakdown
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The table below depicts a detailed report indicating the outer year’s financials
Employee related costs have been increased in line with the indicatives, assumptions and key
parameters. The filling of vacancies will be prioritised to key strategic & critical positions. Repairs
& maintenance budget is at 9.0% of the total operating expenditure which is aimed at protecting
the capital investment. Administrative and non-service areas budget have been reduced and
savings identified. The City’s mandate on CPI, and loan interest parameters have been
implemented.
5.7 Capital Projects
The Entity’s approved Capital Expenditure Budget for the 2017/18 financial year amounts to R52.9
million. The Capex budget is mainly attributable to building improvements of the aging
infrastructure.
The Capitial Expenditure for 2017/18 will address the following asset classes:
• Upgrading of Wholesale Hall facilities in compliance with HACCP standards.
• Food Security initiatives
• Upgrading of Information Technology
• Upgrading of facilities toward a Green Economy
• Ensure that Facilities comply with Health & Safety standards.
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• General upgrading of Trading Hall facilites
• Upgrade of the Main Administration Building
5.7.1 Source of Funding
The Capital expenditure for 2017/18 will be self-funded and spent per asset class as depicted in
figure below;
JM Capex Sources FY2017/18 - 2018/2019
5.7.2 Detail Medium Term Capital Budget 2017/18
JM Approved Capex
5.7.3 Capital Expenditure implementation plan
JM is on a concerted drive to improve capital expenditure at the JM facilities. The focus therefore
will ensure that the following are implemented:
Demand and acquisition plan to be finalized before the start of the financial year.
Implementing the acquisition plan before the end of Quarter 1.
SCM committees are properly identified and trained in SCM processes and regulations.
Utilizing a panel of Service providers to synergize demand acquisition.
Capex forum held on a regular basis to monitor progress on the Capex implementation
plan.
Asset Class 2017/18
Approved
Budget
2017/18 Adj
Budget
2018/19 Draft
Budget
2019/20 Draft
Budget
2020/21 Draft
Budget
Furniture - 250 000 1 000 000 1 000 000 1 000 000
Information Technology 4 550 000 8 150 000 19 000 000 50 165 000 45 165 000
Land & Building 38 585 650 32 785 650 258 000 000 576 651 500 281 000 000
Office Equip - 250 000 1 000 000 - -
Plant and Equip 9 764 000 11 464 000 8 750 000 15 000 000 5 000 000
Total 52 899 650 52 899 650 287 750 000 642 816 500 332 165 000
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ARGANISAURE
6 Organisational Structure
JM has developed the following organisational structure in order to carry out its mandate in
accordance with the new strategic direction JM is following:
Joburg Market Organisational Structure
6.1 Office of the CEO
In addition to CEO’s responsibilities as an accounting officer, the CEO is administratively
responsible for the following functions:
• Internal Audit
The internal audit function also submits reports to the Audit Committee of the Board of
Directors. As part of its on-going campaign to ensure compliance, regular audits are conducted
and reviews undertaken to support the JM in its quest to adhere to legal and legislative
compliance. The function also supports the effort to comply with the principles of the King Code
on corporate governance.
• Risk Management
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The risk management function is performed strictly in accordance with the policies of the CoJ
and the corporate risk function of the Shareholder Unit of CoJ (SHU). As a third phase
programme aimed at refining the risk portfolio in accordance with the risk standards adopted
by CoJ is in the process of being implemented.
• Company Secretariat
The Company secretarial service supports the functions of the Board and reports to the CoJ.
The application of bylaws and relevant agricultural legislation requires constant legal support
by this function. The vetting and drafting of commercial contracts also forms part of its mandate.
• Project Management Office (PMO)
The role of the PMO is the management of all projects for the Market through the appropriate
application of project management principles. Once completed, some project outcomes will be
incorporated into day-to-day operations.
6.2 Strategy and Transformation
This division is an all-encompassing unit that will work hand in hand with all other units. Strategy
and Transformation will play a key role in changing the culture and efficiency of JM. The following
portfolio of services is rendered by the above department:
• Strategic Planning
Strategic planning includes the development of annual and 3 year business plan. The
function is also responsible for longer term strategic planning and trend analysis based on
developments in the many spheres of the fresh produce industry. It provides input to an
organisation of regular strategic sessions.
• Monitoring and Evaluation
o Strategic support mainly focuses on commercial risks and mitigation.
Commercial risk management includes the monitoring of the alternative market
ventures and activities by stakeholders to circumvent the JM. Major
interventions include the redesign of Market By-laws and the introduction of a
new licensing system for market agents and their sales forces.
o Following the approval of a performance management system in compliance
with the provisions of the Municipal Finance Management Act (MFMA) the
function resides with the office of the CEO.
o Performance Management is monitored by the Board through its committee
systems and forms part of key strategic planning sessions.
• Stakeholder engagement
o The objective of this unit to ensure that all government communications are
dealt with accordingly and that all government objectives and processes are
achieved and followed by JM respectively.
o The function of international relations is conducted by the CEO and an
international relations manager. Special emphasis is placed on the
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development of trading in the SADC region and other viable trading
opportunities with countries on the African continent including islands such as
Mauritius and the Middle East.
o The JM also holds membership with the World Union of Wholesale Markets
(WUWM) and the Produce Marketing Association of America (PMA). Head
offices of these institutions are located in the Netherlands and the United States
of America.
o The above mentioned organisations provide a platform to ensure regular
information flow to its members and facilitate networking opportunities.
Innovation and modernisation information received at international conferences
and Expos holds great value to the planning processes of JM.
o From the SADC region the JM is continuing to experience a growing number of
buyers. Distances and logistical challenges remain a major challenge and the
JM will be involved in researching technologies and methods to enable the
tapping of this market opportunity.
o Intergovernmental relations with NDAFF and GDARD will be built around key
projects and programmes.
o NDAFF and the NAMC will be consulted on a regular basis to extend the
information bank to be established at JM for its programmes and projects.
• Transformation
The objective of this function is to transform the JM’s current state, with respect to Broad Based
Black Economic Empowerment (BBBEE) and operational efficiency, into a market that is world
class, highly efficient and supports BBBEE.
This objective will be achieved by:
o Enabling targeted beneficiaries to conduct business in the main stream trading
opportunities for fresh produce
o Nurturing sustainability of beneficiaries through continuous support programmes
backed by suitable expertise
o Harness the goodwill of stakeholders to establish food security across the CoJ
o Building and supporting the good image of targeted entrepreneurs with major fresh
produce buyers and distributors
• Marketing and Communications;
o The function performs the following marketing tasks:
Key account management;
Local and International Stakeholder relations;
Customer care;
Marketing research;
Promotions; and
Corporate social investment.
o This function is mainly conducted from a Business-to-Business perspective. Clients are
dispersed across South Africa and the SADC region.
o The Marketing division also plays a vital role in the Corporate Social Investment
program of JM and administers the food bank system.
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o Marketing & communication activities include participation in exhibitions, media
projects and Industry related conferences and seminars.
o The function also conduct regular marketing research to measure performance the
performance of JM and its stakeholders situated on the Market.
6.3 Agri - business
The following portfolio of services is rendered by the above division:
The division’s focus areas are; a) Food Security, b) Research and Development, and c) Enterprise
Development. Three departments within the Division have been developed to support these focus
areas.
• Food Security
The Joburg Market plays a supportive role to the City of Johannesburg’s (CoJ) efforts that have
been put in place and future plans developed to ensure a food secured City. It is this aspiration
that the Joburg Market (JM), through the Agribusiness Division activities, which include the Food
Support Centre and food donations, is in support of in partnership with the likes of the CoJ
Department of Social Development (DSD). The DSD of the CoJ takes the lead in the CoJ Food
Security Programme and the Joburg Market plays a supportive role. Key to this supportive role is
through the Food Support Centre. The JM has a Food Security Strategy with five implementable
programmes. These programmes are currently under implementation and are continuously
reviewed with the intention of ensuring that they remain relevant and are in response to food
security challenges and existing opportunities. The department is charged with the responsibility
to;
Optimise the Food Support Centre operations with the view to increase food parcels aimed
at indigent support
Interact with other fresh produce and food institutions to optimise the donations of food
towards the Food Support Centre
Create and update data bases to refine reporting in order to identify opportunities and
minimize risk to the Food Support Centre system of JM
Serve as committee member in forums of the CoJ related to food security with the view to
align JM food security initiatives with that of CoJ.
• Research and Development
For fresh produce markets in South Africa to remain relevant and better positioned to deal with
ever-changing industry dynamics, in-depth research is required. The JM is no exception to this. In
addition to remaining relevant, research contributes in positioning fresh produce markets to take
well informed strategic decisions.
In fulfilling the above, Agribusiness Division is responsible for the development and management
of the Agricultural Resource Centre within JM. The Centre’s focus is on research and assessment
of fresh produce industry and assist in developing strategies to ensure that JM adapts to current
industry realities and possible future industry developments. The department research agenda’s
focus is to;
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• Create a resource centre within JM to enable industry related training of staff
• Provide the resource centre with research materials and reported results to enable all
employees to utilize the knowledge base in training and researching problem areas
• Produce electronic referencing and electronic publications retrieval capacity to enable
electronic scrutiny by internal users
• Produce a database of all agricultural related authorities, growers associations and
organizations in agriculture to enable effective communication with stakeholders.
• Enterprise Development and Partnering
Another important area of focus assigned to the Agribusiness Division is the development of
agribusiness opportunities and development of partnerships. Given the dynamics of the industry
and the JM’s scope of operation within the fresh produce value chain, development of partnerships
is a cornerstone for successful agri-business enterprises development. Forming part of key
requirements for enterprises development is linking commercial and emerging farmers in pursuit
of sustainable trading opportunities. In the recent past, it became evident that the agro-processing
stage of the value chain is underdeveloped. This calls for key industry players like the JM to deploy
resources to respond to existing agro-processing opportunities. The departmental priorities are as
follows:
Link JM projects/programmes with potential agricultural partners to optimise outcomes
of projects/programmes
Identify agricultural value adding opportunities for targeted groups for business
empowerment
Analyse the institutional market to identify opportunities for emerging producers, traders
and agents to create viable enterprises
6.4 Core Operations
The following portfolio of services are rendered by the above division:
• Consignment Control
Consignment control and consignment audit ensures that all produce entering the Market site
is captured accurately to ensure that all income is recorded at the correct levels. Secondly it
also aims to protect the interests of both producers and buyers. In the latter respect the CEO
of JM performs the role of an independent “referee”. Powers to conduct this role is inter alia
embedded in the Market bylaws.
Commission Business
This function is the custodian of the services rendered to clients and for which an ad valorem
market due of 5 percent is collected on the gross value of each consignment sold. It ensures
orderly trading practices and conducts the daily operations of the trading halls and services
supporting trading.
• Property administration
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o JM provides cold storage and ripening services from which usage income is
derived. Furthermore, in terms of the bylaws and policy directives utilised to manage
the market, income is also generated from fees and fines such as floor storage
charges if produce remain unsold for an extended period. The Property function
acts as a property management function managing these income generating
properties.
o Property rental is the second largest contributor to the income of JM. Clients operate
diversified activities on the Market site which require in general a high level of risk
awareness and as a consequence regular risk and housekeeping assessments are
conducted.
o To further support the Joburg Market expansion and growth strategy, the property
services department supports the business by determining the rental rates as per
stipulated guidelines; advertise vacant premises and recommending suitable
tenants, producing leasing agreements including repair and maintenance. In
addition, the function includes invoicing, receipting, debt collection and reporting.
• Infrastructure
o This division is also responsible for the maintenance of the facilities and equipment
of the Market. Critical installations such as the cold stores and ripening chambers
are sensitive to even mild deviations and require continuous availability of trained
support staff.
o The various buildings and other amenities requires regular maintenance and
upgrading. Maintenance activities are structured in a maintenance plan for JM.
• Food Quality Assurance
Quality assurance is an inspection service ensuring product quality standards as well as food
safety in protecting the interests of consumers. In particular random tests are conducted to
ensure that no unduly high levels of agricultural chemical residues such as insecticides,
fungicides and herbicides are present on food products received at the market for sale. The
division also monitors hygiene compliance of market facilities and works closely with the
relevant regulatory bodies such as DAFF, DoH and COJ Health Department.
6.5 Human Resources and Compliance
The following portfolio of services is rendered by the above department:
Human Resources Management and Development;
o Training and coaching of employees in the fresh produce trading environment remains
a priority. The department has embarked on a targeted skills development programme
on an annual basis.
o The HR function is to development the remuneration framework for staff as well as the
maintenance of HR records.
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o It is further tasked with the function of Labour Relations and employee performance
assessment administration.
o The Wellness Centre is responsible for the provision of primary health care support,
counselling and employee assistance.
Legal Services;
o Responsible for drafting and review of Policies and By-laws
o Providing of Legal Advice and Opinion to the Company.
o General Litigation
o Drafting of pleadings and legal documents (SLAs and Contracts, etc.).
o Labour Litigation
o General advice and assistance on disciplinary matters.
o Representation of Council (CCMA, Courts and Private Arbitrations)
o General matters of compliance and risk management
o Management of external attorneys and relevant service providers
General Office Administration & Auxiliary Services
o Management of Company’s Registry services.
o Responsible for office cleaning and minor maintenance
o Printing and binding of all Company’s print jobs
o Provision of house-keeping and kitchen services.
o Provision of internal messenger services.
Compliance and Enforcement
o Development and Implementation of the Security Plan.
o Physical Security at the Market
o Management of outsourced security service.
o Incident Management
o By-law enforcement.
o Physical patrolling of the Market Premises
o Engage external Law Enforcement Agencies on security measures at the Market.
o CCTV renders complementary support to physical security at the Market.
o Monitoring of activities in and around the Market
o Analysis of data to develop counter measures
Information technology
o Development and continuous aligning of IT Master Planning with Company’s Strategy
o Ensure availability of IT Systems at all times.
o Responsible for the design, management and growth of the entire IT Infrastructure
o Responsible for security of all IT Systems
o Management of access to the IT system.
o Administration of all other IT Applications
o Responsible for User Support in all Systems.
Safety, Health and Environment
o Ensuring compliance with OSH Act.
o Occupational Health and Safety assessments
o Emergency and Evacuations Plans
o Management of Occupational Injuries and Diseases.
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o Deployment and servicing of emergency tools and equipment.
6.6 Finance
The following portfolio of services is rendered by the above department:
Financial Management
o The financial management function is the key driver to achieve financial sustainability of
the Joburg Market. It is responsible for the organisationall aspects of its financial health.
It is accountable for the resources entrusted to it, including funding, expenditure
management, and cash flow management including budgets and accounting
responsibilities. It also involves the implementation of business process engineering to
effect strong internal controls.
o It ensures that all funds are spent in accordance with JM policies and procedures, and
operating needs met within available budgets. Its responsibility also includes financial
management, and development of investment strategies and financial reporting and
expenditure monitoring. It encourages units to develop an oversight process that builds
on best practices. It determines all funding sources, expenditures and reserves
available for future use (excluding those already committed and budgeted for current
period). Furthermore; it includes all outstanding commitments to unit-wide programs,
capital projects. The department also provides management with information necessary
to make strategic decisions at any time during the year.
Fixed Asset Controls and Insurance
o The Joburg Market Fixed Assets department within the Finance structure is tasked and
responsible for the safeguarding and management of its assets and insurance of assets
thereof. The management of the Company’s fixed assets being Property, Plant,
Equipment, Investment Property and Intangibles by means of ensuring that the
requirements of the strategic objectives and operational needs are met with the
allocation of a capital expenditure budget. This process entail planning and proper
budgeting of all capital projects, acquisition, maintenance and disposal of scrap and
redundant assets are in terms of the Finance policies and procedures.
o All acquisitions and disposals are carried out in line to the requirements of the MFMA
and Supply Chain Regulations. These include among others; maintenance of the
Joburg Markets fixed asset register by means of physical asset verifications,
impairments and re-valuations of assets. The insurance component includes; insurance
for business continuity, assets, employees, accidents and asset loss.
Supply Chain Management
Supply chain management enhances compliance, improves accountability and
transparency, it update measures required to combat fraud in the supply management
value chain. It supports the sound financial management processes in place to improve
service delivery. SCM provides the mechanisms for implementing demand, acquisition,
logistics and performance management.
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Cashiering:
To further ensure an effective cash management system and approach, the cashiering
department supports the business by ensuring that all cash received from customers is
safely deposited, all refunds are deposited to customer’s accounts, all cashiers perform a
daily balancing function and all daily cash is deposited through the officially appointed
service providers for banking purposes.
7. Human Resource Management Plan
In the financial year 2016/17 Joburg Market developed a Human Resources Management &
Development Strategy, which is the four year plan depicting the road map for human resources
management and development . The Strategy outlines the intentions of Joburg Market in relation
to how it will manage its human capital and it articulates the integration of the human resources
processes. It deals with:
Set out the framework for facilitating consistent action and behaviour in respect of
employment relations management in the Company.
Set out the principles or settled rules of action to which management and employees
are subject.
Indicates how the employment relationship should be operated in the organization.
Ensure that all the Company’s Human resources practices are in line with, and
promote the Company’s Mission, Vision and Values
In the HRM&D Strategy key strategic goals were identified and linked programmes that aimed at
realising these strategic goals. The table below captures the strategic goals and programmes
linked to each one of them.
No Objective No Actions Year One
2016/17
Year Two
2017/18
Year Three
2018/19
Year Four
2019/20
1. Human Resources Strategic Alignment
1.1 Organisational Structure aligned to the Company Business Plan.
X X X X
1.2 Proactively engage customers in the analysis of their workforce management needs and issues and identify strategies to address concerns
X X
1.3 Implement a workforce planning processes, techniques and tools to proactively identify the human resources required to meet Business Plan objectives
X X X X
1.4 Develop JM HRD & M Strategy aligned to the Group HR Strategy for CoJ
X
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No Objective No Actions Year One
2016/17
Year Two
2017/18
Year Three
2018/19
Year Four
2019/20
2. Effective Human Resource Planning
2.1 Effectively identify, attract, recruit and retain the best talent to help the Company meet its Strategic Objectives
X X X X
2.2 Identify scarce and critical skills
X X X X
2.3 Conduct job evaluation and develop standardized job profiles for all positions to be used as a basis for recruitment and career pathing.
X X X X
3. Organizational Development
3.1 Conduct employee climate survey to understand current challenges around organizational culture, use the results to design future/ideal organizational culture.
X X
3.2 Conduct formal review of Company’s orientation process and develop implementation plan to streamline and improve employee orientation
X X
3.3 Conduct exit surveys/interviews to identify reasons for attrition and use the information to enhance or improve employee experience of the Company
X X X X
4. Build and Sustain a Capable, Diverse, Well-Trained, Workforce and Enhance Retention Through Learning and Professional Development Opportunities
4.1 Conduct an annual training needs assessment to ensure training is designed to improve organizational and individual performance
X X X X
4.2 Implement a leadership development programme for all supervisors, managers and executives to invest in the continuous development of leadership
X X X X
5. Inculcate a Results-Oriented High Performance Culture
5.1 Roll-out of employee Performance Management to enforce responsibility and accountability by line managers and employees to enhance organizational,
X X X X
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No Objective No Actions Year One
2016/17
Year Two
2017/18
Year Three
2018/19
Year Four
2019/20
team and individual performance.
5.2 Cascade employee performance management system to lower levels
X X X X
5.3 Develop Individual Development Plans for all employees and translate that into Work Place Skills Plan for training interventions to address skills gaps
X X X X
6. Recognise & Reward Performance
6.1 Provide a progressive remuneration framework for Joburg Market which is affordable, competitive, attractive and that provides for advancement through salary ranges
X X X X
6.2 Adopt and implement Key Salary Scale based on the TASK Job Evaluation System.
X X X X
7. Sound Employee Relations & Human Resources Governance
7.1 Conduct a review of HR Policies, SOPs and Processes as and when required, ensuring alignment to legislative requirements and best practice
X X X
7.2 Capacitate line management/ supervisors through coaching and continuous training on grievances and disciplinary matters
X X
7.3 Ensure sound and viable labour relations through the local labour forum.
X X X X
7.4 Promote healthy, resilient and productivity among employees
X X X X
The Implementation Plan for the HRM&D Strategy contains interventions that have been identified
and prioritized for the next four years. It also reflects the key deliverables for the each year of the
Plan and these are subject to the annual budget. Progress against the plan and the performance
indicators and targets are monitored. The impact and effectiveness of each of the interventions is
measured and corrective action taken on quarterly and annual basis.
7.1 Human Resource Development (HRD)
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The key pillars that guide the human resource development strategy are as follows:
o Organisational Development - ensuring that JM implements a change management
process preparing employees for the change in business strategy and processes.
o Organisational Culture - conducting a climate survey to assess issues that impact on
employee morale and implementing programmes to reduce negative perceptions by
employees.
o Talent Management - ensuring that JM nurtures existing talent and attracts appropriate
talent into the organisation.
o Retention - of critical and core skills to ensure continuity and consistent high
performance, and improved productivity.
o Succession planning - identifying succession candidates and mentors for critical
positions to ensure a constant pool of talent, especially in positions that are hard to fill.
o Developing appropriate organisational structure – the structure will assist us to
align the recruitment to the business strategy and ensure the stability in the
organisation. The process in already in progress and an annual review of the structure
is envisaged to keep it realistic and relevant for the business.
o Implementing a performance management system & culture - to inculcate a culture
of service excellence and accountability; all managers will be placed on performance
management.
o Managing employee safety & wellness – we will implement a comprehensive
wellness programme that ensures a productive workforce. The wellness programme
will promote chronic disease management and promote work-life balance for staff.
o Sound employee relations – implement an employee engagement strategy that
incorporates an alignment of the LLF and Company programmes for ensuring sound
and labour environment. Mechanisms will be created that provides employees with
avenues to address their workplace challenges with assurance of confidentiality.
o Remuneration & reward - JM shall constantly review the reward strategy and
remuneration practices to keep abreast of trends and promote loyalty. Efforts will be
made to introduce reward schemes that encourage retention and that encompass both
financial and non-financial rewards
o Improved systems & processes – implement continuous improvement of our systems
and processes through benchmarking and alignment of processes to progressive
organisations’ standards.
o HR planning – ensuring that manpower planning is informed by business requirements
and needs. The key intervention will be to undertake job evaluation and profiling that
will inform the requisite skills.
7.1.1 Skills Priorities for JM
The focus of the training initiatives will address the following skills priorities:
Technical skills
Banana Ripening
Packaging and Labelling
Food Safety Standards
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Cold Store Fundamentals
Logistics and Consignment Movement
Stock Auditing
Artisan Training
Product knowledge training
In terms of developing JM leadership and management the following initiatives will be rolled out:
Retail Management Development Programme
Project and Programme Management
MFMA Competencies Programme
Self-Mastery Programme for all managers.
Risk Management
Ethics and Governance
Membership of Professional bodies for all Managers
Local Government Administration
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7.1.2 Employment Equity
The JM continuously strives to comply with the provisions of the Employment Equity Act. The
Employment Equity (EE) Plan is aligned to the demographics data of Gauteng to ensure
consistency with provincial employment data. The projected demographic profile of the Joburg
Market is intended to be as reflected in table below;
JM Projected Demographic profile - 2018/2019
OCCUPATIONAL
LEVELS
TARGET AS AT JUNE 2019 STATUS AS AT JULY 2017
MALE FEMALE
TO
TA
L
MALE FEMALE
TO
TA
L
A C I W A C I W A C I W A C I W
Top Management 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1
Senior Manager 3 0 0 0 1 0 0 1 5 3 0 0 0 1 0 0 1 5
Mid Manager /
Professional 19 2 3 8 11 0 2 3 48
18 2 3 7 11 0 2 3 46
Skilled Tech /
Junior Manager 50 2 2 11 43 3 4 11 126
49 2 2 9 41 3 4 11 121
Semi- Skilled 62 2 1 5 68 5 0 8 151 62 2 1 4 68 5 0 7 149
Unskilled 19 0 0 2 21 0 0 0 42 19 0 0 2 21 0 0 0 42
TOTAL 154 6 6 26 144 8 6 23 373 152 6 6 22 142 8 6 22 364
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ANNEXURE 1: JM 2018/19 SCORECARD
Dip
heto
go
pro
gra
mm
e im
pact
National outcome 6: An efficient, competitive and
responsive economic infrastructure network.
Co
mp
an
y
Strategic
policy/plan
:
JM Trading Space
Optimization Programme
Output:
Improved
trading results
King IV Principle
Strategic Objective
Total Weight
25%
Lead
er
Multiyear predictions
Section 87 (MFMA)
IDP Outcome 1: A growing, diverse and competitive
economy that creates jobs
Strategic
priority:
Implement business growth
programmes
Outcome:
Growth of the
business of JM
2.2: The governing body
should ensure that reports
and
other disclosures enable
stakeholders to make an
informed
assessment of the
performance of the
organization and its ability
to create value in a
sustainable manner
CoJ Strategic priority 1: Promote economic development
and attract investment towards achieving 5% economic
growth that reduces unemployment by 2021.
KPI
Means of
verificatio
n
Unit of
measur
e
Baseline Target
2018/19
Key
intervention
s
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weigh
t CAPEX
R/M
OPE
X
R/M
Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Maximize revenue to turnover R10 billion per annum by 2022
Strategic objective: Ensure financial sustainability and growth of the entity
Fin
an
ce –
In
cre
as
e in
th
e c
ollecti
on
of
reven
ue t
o i
ncre
ase f
un
din
g
to C
ity p
roje
cts
(1.1)
% Targeted
market share
held by JM in
relation to other
FPMs
FPMs: National
Fresh Produce
Markets in South
Africa
National
market
share
report
indicating
JM in
relation to
other FPMs
as
measured
by SAUFM
SAUFM:
South
African
Union of
Food
Markets
%
(cum)
42.5%
Targeted
market share
held by JM in
relation to
other FPMs
44.0%
Targeted
market
share held
by JM in
relation to
other FPMs
Develop
monitoring &
reporting
software
(SPS Data
Warehouse)
0 0,95M 42.0%
Targete
d market
share
held by
JM in
relation
to other
FPMs
42.5%
Targete
d market
share
held by
JM in
relation
to other
FPMs
43.0%
Targeted
market
share
held by
JM in
relation to
other
FPMs
44,0%
Targeted
market
share
held by
JM in
relation to
other
FPMs
44.0%
Targeted
market share
held by JM in
relation to
other FPMs
25%
Ag
ri-
Bu
sin
ess
45.0%
Targeted
market
share held
by JM in
relation to
other FPMs
46.5%
Targete
d market
share
held by
JM in
relation
to other
FPMs Total 0 0,95M
R/M
(cum)
R 7.478 Bn
R 7.478 Bn
SPS:
JM Real time central electronic
trading system
1,57Bn R3,52Bn R5,5Bn R 7,47 Bn R 7.478 Bn R7,49Bn R7,51Bn
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
58
Strategic Renewal of JM A new Wave towards 2021
Dip
heto
go
pro
gra
mm
e im
pact
National outcome 12: An efficient, effective and
development oriented public service and an empowered, fair
and inclusive citizenship.
Co
mp
an
y
Strategic
policy
/plan:
JM: Transformation Strategy Output: Empowerment of
targeted groups King IV Principle
Strategic Objective
Total Weight
25%
Lead
er
Multiyear predictions
Section 87 (MFMA)
IDP Outcome 1: An inclusive society with enhanced quality of
life that provides meaningful redress through pro-poor
development
IDP Outcome 3: Enhanced, quality services and sustainable
environmental practices Strategic
priority:
Drive Socio-economic
Transformation
Outcome: BEE owned
enterprises trading
with/at JM
4.3: The governing body
should govern
compliance with laws and
ensure consideration of
adherence to non-binding
rules, codes and
standards. Mayoral priority 2: Ensure pro-poor development that
addresses inequality and poverty and provides meaningful
redress
Mayoral priority 6: Create a City that responds to the needs of
citizens, customers, stakeholders and businesses
KPI Means of
verification
Unit of
measur
e
Baseline Target
2018/19
Key
interventio
ns
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weight CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Investment in infrastructure – R1.2 billion infrastructure spend by 2022
Strategic objective: Operate a sustainable resilient premier marketing and trading facility
Eco
no
mic
Dev
elo
pm
en
t:
Th
e s
ign
ific
an
t
imp
rovem
en
t in
th
e e
ase a
nd
exp
eri
en
ce o
f
do
ing
bu
sin
ess i
n t
he C
ity
(2.1) % of
repairs and
maintenance
budget spent
Signed off
completion
certificate based
on the
programme
progress
monitor
%
(cum)
New 100 % of
repairs and
maintenance
budget spent
Communicat
ions
programmes
aimed at
BEE
suppliers
0,08M 8% of
repairs and
maintenanc
e budget
spent
29% of
repairs
and
maintenan
ce budget
spent
61,5 % of
repairs and
maintenance
budget spent
100% of
repairs and
maintenance
budget spent
100% of
departmental
repairs and
maintenance
budget spent
Fin
an
ce
100 % of
repairs and
maintenance
budget spent
100 % of
repairs and
maintenanc
e budget
spent
Administrati
ve system
improvemen
ts
0.07
Total 0,15
R/M
(Cum)
New R 30,889M
R 2,5M R 9M R 19M R 30,889M R 30,889M
R 32M R 33M
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
59
Strategic Renewal of JM A new Wave towards 2021
Dip
heto
go
p
rog
ram
me i
mp
act
National outcome 12: An efficient, effective and
development oriented public service and an empowered, fair
and inclusive citizenship.
Co
mp
an
y
Strategic
policy/
plan:
Transformation Strategy Output: Empowerment of
targeted groups King IV Principle
Strategic Objective
Total Weight
25%
Lead
er
Multiyear predictions
Section 87 (MFMA)
GDS principle 5: Achieving social inclusion be facilitating
behavioral change and creating a common “Joburg identity” Strategic
priority:
Drive Socio-economic
Transformation
Outcome: BEE owned
enterprises trading
with/at JM
1.3: The governing body
should ensure that the
organization is a
responsible corporate
citizen.
Mayoral priority 2: Ensure pro-poor development that
addresses inequality and provides meaningful redress
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key interventions 2018/19
Budget per
programme
Quarterly Targets
YTD
KPI
Weight
CAP
EX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Transformation at farm levels and the value chain of JM through targeted programmes and incentives
Strategic objective: Become an agent for socio-economic transformation
Ec
on
om
ic D
ev
elo
pm
en
t: I
ncre
as
ing
th
e n
um
be
r o
f
SM
ME
s a
s s
up
plie
rs t
o t
he
Cit
y
(3.1)
Complete 2
development
support
programmes
for farmers
from targeted
groups
Completion
certificate signed
off on the
completed scope
of the
programmes
number
(cum)
New 2 x
Completed
development
support
programmes
for farmers
from targeted
groups
Identification of
targeted farmers in
consultation with
Provincial
Departments of
Agriculture.
0 0.2M 0 0 1x
Completed
development
support
programmes
for farmers
from targeted
groups
2x
Completed
development
support
programmes
for farmers
from targeted
groups
2 x
Completed
development
support
programmes
for farmers
from targeted
groups
Ag
ri B
usin
ess
3x
Completed
development
support
programmes
for farmers
from targeted
groups
4 x
Completed
development
support
programmes
for farmers
from targeted
groups
Emerging farmers’
communications
programme and
accredited training.
0 1.6M
Total 0 3,1M
Ec
on
om
ic
Dev
elo
pm
en
t: T
he
roll
ou
t o
f a
Yo
uth
Sk
ills
Pro
gra
m
(3.2) No. of
jobs created
by JM and
Businesses
and SMME’s
at the JM site
Appointment
documents and
project
monitoring
reports
Number
(cum)
New 200 jobs
created
On-site training of
participants
0 0,08M 10 jobs
created by
JM and
Businesse
s and
SMME’s
at the JM
site
35 jobs
create by
JM and
Businesses
and SMME’s
at the JM
site d
110 Jobs
created by
JM and
Businesses
and SMME’s
at the JM site
200 Jobs
created by
JM and
Businesses
and SMME’s
at the JM site
200 Jobs
created by JM
and
Businesses
and SMME’s
at the JM site
Co
re o
pe
rati
on
s
250 jobs
created by JM
and
Businesses
and SMME’s
at the JM site
275 jobs
created by
JM and
Businesses
and SMME’s
at the JM site
Minor equipment 0 0,.07M
Total 0 0,150
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
60
Strategic Renewal of JM A new Wave towards 2021
Dip
heto
go
p
rog
ram
me i
mp
act
National outcome 12: An efficient, effective and
development oriented public service and an empowered, fair
and inclusive citizenship.
Co
mp
an
y
Strategic
policy/
plan:
Stakeholder engagement,
Marketing & communications
strategies
Output: Empowerment of
targeted groups King IV Principle
Strategic Objective
Total Weight
25%
Le
ad
er
Multiyear predictions
Section 87 (MFMA)
GDS principle 6: Promoting good governance
Strategic
priority:
Develop JM into a high
performance organization
Outcome: BEE owned
enterprises trading with/at
JM
5.1: As part of its decision –
making in the best interests
of the organization, the
governing body should
ensure that a stakeholder-
inclusive approach is
adopted, which takes into
account and balances their
legitimate and reasonable
needs, interests and
expectations
Mayoral priority 3: Create a culture of enhanced service
delivery with pride
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
intervention
s
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weig
ht CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Good Governance
Strategic objective: Ensure effective stakeholder engagement
Eco
no
mic
Dev
elo
pm
en
t:
Th
e s
ign
ific
an
t im
pro
ve
men
t
in t
he e
as
e a
nd
exp
eri
en
ce o
f d
oin
g b
usin
es
s in
th
e
Cit
y
(4.1) %
resolution of
stakeholder
concerns
(customer
satisfaction
survey)
Quarterly reports
Concluded
Satisfaction
survey results
%
(cum)
New 70 % resolution
of stakeholder
concerns
(customer
satisfaction
survey)
1 x survey
Develop a
new pan for
stakeholder
management.
conduct
meetings with
key
stakeholders
to get deeper
understanding
of concerns of
all
stakeholder
groups
Develop a
new survey
approach for
customer
satisfaction
measurement
0 0 - - - 70 %
resolution of
stakeholder
concerns
(customer
satisfaction
survey)
70 % resolution
of stakeholder
concerns
(customer
satisfaction
survey)
Str
ate
gy
80%
customer
satisfaction
achieved as
per survey of
overall
satisfaction
90%
customer
satisfaction
achieved as
per survey of
overall
satisfaction
Total
0
180 000
1 X survey 1 x survey
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
61
Strategic Renewal of JM A new Wave towards 2021
Dip
heto
go
p
rog
ram
me i
mp
act
National outcome 9: A responsive, accountable,
effective and efficient local government system.
Co
mp
an
y
Strategic
policy/plan:
Financial sustainability
strategy
Output: Improved surplus
generation King IV Principle
Strategic Objective
Total Weight
25%
Lead
er
Multiyear predictions
Section 87 (MFMA) GDS principal 4: Ensuring resource security and
environmental sustainability. GDS principle 6:
Promoting good governance Strategic
priority:
Financial sustainability and
growth
Outcome: Liquid going
concern
4.3: The governing body
should govern compliance
with laws and ensure
consideration of
adherence to non-binding
rules, codes and standards
Mayoral priority 7: Enhancing our financial
sustainability
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
interventions
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weight CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Good governance
Strategic objective: Become a high-performance organisation
Ec
on
om
ic D
ev
elo
pm
en
t:
Inc
rea
sin
g
the
nu
mb
er
of
SM
ME
s a
s s
up
pli
ers
to
the
Cit
y
(5.1) % of
valid
departmental
invoices paid
within 30 days
of invoice
date
Creditors
payment
report
%
(cum)
New 100% of valid
departmental
invoices paid
within 30 days
of invoice
date
Creditor
communications
0 O,09M 100% of valid
departmental
invoices paid
within 30 days
of invoice date
100% of valid
departmental
invoices paid
within 30 days
of invoice date
100% of valid
departmental
invoices paid
within 30 days
of invoice date
100% of valid
departmental
invoices paid
within 30 days
of invoice date
100% of valid
departmental
invoices paid
within 30 days
of invoice date
Fin
an
ce
100% of valid
departmental
invoices paid
within 30 days
of invoice date
100% of valid
departmental
invoices paid
within 30 days
of invoice date
R/M
(cum)
New R56,12M Total 0 O,09M R14.0M R28M R42,1M R56,12M R56,12M R61,9M R63,3M
Ec
on
om
ic D
ev
elo
pm
en
t:
Th
e
sig
nif
ica
nt
imp
rov
em
en
t in
th
e e
ase
an
d e
xp
eri
en
ce
of
do
ing
bu
sin
es
s in
the
Cit
y
(5.2) %
resolution of
Auditor
General and
Internal Audit
findings
Final AG
report and
final
Internal audit
report
AG
opinion
And
Internal
Audit
reports
Unqualified
audit
95 %
resolution of
Auditor
General and
Internal Audit
findings
Validation of
resolved
findings by
internal audit
0 0 30 %
resolution of
Auditor
General and
Internal Audit
findings
50 %
resolution of
Auditor
General and
Internal Audit
findings
75 %
resolution of
Auditor
General and
Internal Audit
findings
95 %
resolution of
Auditor
General and
Internal Audit
findings
95 %
resolution of
Auditor
General and
Internal Audit
findings
96 %
resolution of
Auditor
General and
Internal Audit
findings
97 %
resolution of
Auditor
General and
Internal Audit
findings
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
62
Strategic Renewal of JM A new Wave towards 2021
Dip
heto
go
p
rog
ram
me i
mp
act National outcome 7: Vibrant, equitable and sustainable rural
communities with food security for all.
Co
mp
an
y
Strategic
policy/plan:
JM: Food support strategy
Output: Increased
number of food parcels
distributed
King IV Principle
Strategic Objective
Total Weight
15%
Lead
er
Multiyear predictions
Section 87 (MFMA)
GDS principle 1: Reducing poverty
Strategic
priority:
Ensuring food safety and
security as CSI initiative
Outcome: Effective pro
poor support
1.3: The governing body
should ensure that the
organization is a
responsible corporate
citizen
Mayoral priority 2: Ensure pro-poor development that addresses
inequality and provides meaningful redress
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
interventio
ns
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weig
ht CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20 2020/21
Strategic deliverable : Good Governance
• Strategic objective: Become an agent for socio-economic transformation
So
cia
l S
erv
ices:
Th
e e
xp
an
sio
n o
f fr
ee b
asic
serv
ices t
o t
ho
se i
n g
reate
st
need
wit
h t
he
Cit
y's
ES
P
(6.1) Number of
donations to
targeted
beneficiaries from
NGOs, NPOs and
indigent families
Quarterly
report, Annual
reports and
Audited reports
Number
(cum)
New 12500
Number of
donations to
targeted
beneficiaries
from NGOs,
NPOs and
indigent
families
Procurement
, sorting and
packing of
food
donations
0.750M 2000
Number of
donations
to targeted
beneficiari
es from
NGOs,
NPOs and
indigent
families
4500
Number of
donations to
targeted
beneficiaries
from NGOs,
NPOs and
indigent
families
9500
Number of
donations to
targeted
beneficiaries
from NGOs,
NPOs and
indigent
families
12500
Number of
donations to
targeted
beneficiaries
from NGOs,
NPOs and
indigent
families
n
12500
Number of
donations to
targeted
beneficiaries from
NGOs, NPOs and
indigent families
Ag
ri-B
usin
ess
13000
Number of
donations to
targeted
beneficiaries
from NGOs,
NPOs and
indigent
families
14500
Number
of
donation
s to
targeted
benefici
aries
from
NGOs,
NPOs
and
indigent
families
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
63
Strategic Renewal of JM A new Wave towards 2021
CO
J ID
P P
rog
ram
me
National outcome 9: A responsive,
accountable, effective and efficient local
government system.
Co
mp
an
y
Strategic
policy/plan: Financial sustainability strategy
Output: Improved
surplus generation
King IV Principle
Strategic Objective
Total Weight
20%
Lead
er
Multiyear predictions
Section 87 (MFMA)
GDS Principle 4: Ensuring resource security and
environmental sustainability
Strategic
priority:
Financial sustainability and
growth
Outcome: Liquid going
concern
2.1: The governing body
should lead the value
creation process by
appreciating that strategy,
risk and opportunity,
performance and
sustainable development
are inseparable elements
Mayoral priority 7: Enhancing our financial
sustainability
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
interventions
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Wei
ght CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4
2019/20 2020/21
Strategic deliverable : Investment in infrastructure – R1.2 billion infrastructure spend by 2022
Strategic objective: Operate a sustainable resilient premier marketing and trading facility
(7.1) % of
departmental
capital budget
spent
% of spending
level of CAPEX
against demand
plan
%
(cum.)
52,9% 100%
of
department
al capital
budget
spent
Specialist
coaching &
training
0,7M 16%
of
departmen
tal capital
budget
spent
35% of
departmen
tal capital
budget
spent
62% of
departmenta
l capital
budget
spent
100%
of
departmenta
l capital
budget
spent
100% of
departmental
capital budget
spent
Fin
an
ce
100% of
departmental
capital budget
spent
100% of
departmental
capital
budget spent Capex
spending
R52,9M
Capex
spending
workgroup
refinement
0 0,5M
R/M
(cum)
R59.3M
R52,9M R8.5M
R18.5M R32.9M R52,9M
R52,9M R51,2M
R2,2M
(7.2) % of
departmental
operational
budget spent
Financial
Statements
%
(cum)
New 100% of
department
al
operational
budget
spent
Monthly &
quarterly
variance
analysis
0 0 15% of
departmen
tal
operational
budget
spent
49% of
departmen
tal
operational
budget
spent
72% of
departmenta
l operational
budget
spent
100% of
departmenta
l operational
budget
spent
100% of
departmental
operational
budget spent
100% of
departmental
operational
budget spent
100% of
departmental
operational
budget spent
R/M
(cum)
New
R64,548M Management
reporting as
early warning
R9.952M R31.997M R46.723M R64,548M R64,548M R73.689M R95.265M
(7.3) Value of net
surplus achieved
Financial
Statements
R/M
(cum.)
R81,17M
Value of
net
surplus
achieved
R64,5M
Value of net
surplus
achieved
- - - R8,0M
Value of
net surplus
achieved
R14,5M
Value of
net surplus
achieved
R39M Value
of net
surplus
achieved
R64,5M
Value of net
surplus
achieved
R64,5M Value of
net surplus
achieved
R71M Value
of net surplus
achieved
R72M Value
of net surplus
achieved
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
64
Strategic Renewal of JM A new Wave towards 2021
CO
J
IDP
Pro
gra
mm
e
National outcome 4: A skilled and capable workforce to
support an inclusive growth path
Co
mp
an
y
Strategic
policy/plan:
Human Resources Strategy Output: Leadership- and
skills development King IV Principle
Strategic Objective
Total Weight
15% Lead
er
Multiyear
predictions
Section 87 (MFMA)
GDS Principle 5: Achieving social inclusion by facilitating
behavioral change and creating a common “Joburg identity”
and Principle 6: Promoting good governance
Strategic
priority:
Productive, motivated and engaged
employees
Ensuring food security and safety
Outcome: Expert
employees in Market
operations
4.4: the governing body
should ensure that the
organization remunerates
fairly, responsibly and
transparently so as to
promote the creation of
value in a sustainable
manner
Mayoral priorities 3: Create a culture of enhanced service
delivery with pride
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
interventio
ns
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weigh
t CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20
2020/
21
Strategic deliverable : Good Governance
Strategic objective: Become a high-performance organisation
Pil
lar
5 –
In
sti
tute
an
ho
ne
st
res
po
ns
ive
an
d p
rod
uc
tive
go
ve
rnm
en
t
(8.1) % of
employees
receiving
performance
coaching and
review as per the
policy
Training plan as
identified in the
individual
Personal
Development
Plans.
% (cum)
New 100% of
employees
receiving
performance
coaching and
review as per
the policy
Leadership
development
programme
0 1.12M 10% of
employees
receiving
performanc
e coaching
and review
as per the
policy
30% of
employees
receiving
performance
coaching and
review as per
the policy
70% of
employees
receiving
performance
coaching and
review as per
the policy
100% of
employees
receiving
performance
coaching and
review as per
the policy
100% of
employees
receiving
performance
coaching and
review as per the
policy
Sh
are
d S
erv
ice
s
100% of
targeted
staff
members
trained
100% of
targeted
staff
members
trained
Total 0 1,12M 1 2 4 7 7 8 9
(8.2) Number of
days taken to
resolve
disciplinary cases
Record of findings
at hearings
No of
days
New 120 days
taken to
resolve
disciplinary
cases
0 0 120 days
taken to
resolve
disciplinary
cases
120 days
taken to
resolve
disciplinary
cases
120 days
taken to
resolve
disciplinary
cases
120 days
taken to
resolve
disciplinary
cases
120 days taken to
resolve
disciplinary cases
120 days
taken to
resolve
disciplinar
y cases
120
days
taken
to
resolve
discipli
nary
cases
Total 0 0
(8.3) Number of
days taken to fill
critical vacancies
Signed
appointment
letters
No of
days
New 90 days taken
to fill crucial
vacancies
Performance
Management
System
implementation
0 0,265M 90 days
taken to fill
crucial
vacancies
90 days
taken to fill
crucial
vacancies
90 days
taken to fill
crucial
vacancies
90 days
taken to fill
crucial
vacancies
90 days taken
to fill crucial
vacancies
90 days
taken to
fill crucial
vacancie
s
90 days
taken to
fill
crucial
vacanci
es
Pill
ar
4 –
Bu
ildin
g
Ca
rin
g S
afe
an
d
Se
cu
red
Co
mm
un
itie
s
(8.4) % of
departmental
performance
targets achieved
Monitoring and
Evaluation
certificate
% cum New
85% Legal
Appointments
0 0.378M 85% of
department
al
performanc
e targets
achieved
85% of
departmental
performance
targets
achieved
85% of
departmental
performance
targets
achieved
85% of
departmental
performance
targets
achieved
85% of
departmental
performance
targets achieved
Sh
are
d S
erv
ices
75% of
departmen
tal
performan
ce targets
achieved
75% of
departme
ntal
performa
nce
targets
achieved
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
65
Strategic Renewal of JM A new Wave towards 2021
CO
J
IDP
Pro
gra
mm
e
National outcome 4: A skilled and capable
workforce to support an inclusive growth path
Co
mp
an
y
Strategic
policy/plan:
Human Resources Strategy Output: Leadership- and
skills development King IV Principle
Strategic Objective
Total Weight
15%
Lead
er
Multiyear
predictions
Section 87 (MFMA)
GDS Principle 5: Achieving social inclusion by
facilitating behavioral change and creating a
common “Joburg identity” and Principle 6:
Promoting good governance Strategic
priority:
Productive, motivated and
engaged employees
Ensuring food security and
safety
Outcome: Expert
employees in Market
operations
4.2: The governing body
should govern
technology and
information in a way that
supports the organization
in defining core purpose
and to set and achieve
strategic objectives
Mayoral priorities 3: Create a culture of enhanced
service delivery with pride
KPI Means of
verification
Unit of
measure Baseline
Target
2018/19
Key
interventio
ns
2018/19 Budget
per programme Quarterly Targets
YTD
KPI
Weigh
t CAPEX
R/M
OPEX
R/M Q1 Q2 Q3 Q4 2019/20
2020/
21
Strategic deliverable : Good Governance
Strategic objective: Become a high-performance organisation
Pill
ar
5 –
Institu
te a
n h
on
est re
sponsiv
e a
nd p
rod
uctive
govern
ment
(8.5) %
implementation
of the electronic
business plan
management
system (SAP
SSM)
Training plan as
identified in the
individual
Personal
Development
Plans.
% (cum)
New 100% of
targeted staff
members
trained
10% of
targeted
staff
members
trained
30% of
targeted
staff
members
trained
70% of
targeted
staff
members
trained
100% of
targeted
staff
members
trained
100% of
targeted staff
members
trained
Share
d S
erv
ices
100% of
targeted
staff
members
trained
100% of
targeted
staff
member
s trained
No.
(cum)
No.
(cum)
7 members 3
members
5 members 6 members 7 members 7 members 8
members
9
member
s
(8.6) % monthly
reporting into
Capital
Management
System (iRIS)
Level of staff
remuneration to
OPEX
%
(cum)
new % monthly
reporting into
Capital
Management
System
(iRIS)
100%
monthly
reporting
into Capital
Manageme
nt System
(iRIS)
100%
monthly
reporting
into Capital
Managemen
t System
(iRIS)
100%
monthly
reporting
into Capital
Managemen
t System
(iRIS)
100%
monthly
reporting
into Capital
Managemen
t System
(iRIS)
100% monthly
reporting into
Capital
Management
System (iRIS)
100%
monthly
reporting
into
Capital
Manage
ment
System
(iRIS
100%
monthly
reportin
g into
Capital
Manage
ment
System
(iRIS
1x Report 2x Report 3x Report 4x Report 1x Report 1x
Report
1x Report 1x
Report
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
66
Strategic Renewal of JM A new Wave towards 2021
ANNEXURE 2: CROSS CUTTING ACTIVITIES
JM is primarily supporting the agriculture and food security priorities stemming from the nature of its business. However, partnerships with other
CoJ functions bring about opportunities to add value to the overall programme and in this regard the cross cutting elements are listed in the table
below.
Role of DED as cluster and cross cutting activities of JM
City Priority 3:- Agriculture and Food
security
CoJ: Departments: Health and Social
Development
CoJ Entities
City Priority 2
pro-poor
Pro poor development Social Development
Department
Human
Development
Department
Pikitup City Parks Johannesburg
Development
Agency
DED Role • Expand commercial
urban agriculture
• Disposal of land for
agricultural purposes
• Integrate cooperatives
into the agricultural
value chain and into the
CoJ Food Security
programme
o o o o o
Programmes/P
rojects
• SMME and
Entrepreneurship
Development,
o o o o o
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
67
Strategic Renewal of JM A new Wave towards 2021
City Priority 3:- Agriculture and Food
security
CoJ: Departments: Health and Social
Development
CoJ Entities
City Priority 2
pro-poor
Pro poor development Social Development
Department
Human
Development
Department
Pikitup City Parks Johannesburg
Development
Agency
Cooperatives Support,
Township Economic
Development
JM • Sustain agricultural
stakeholder
relationships and link
them to emerging
producers/agents
• Train urban farmers on
how to use JM as
trading point
• Participate in Local Agri-
forums
• Develop pack houses
for BEE entrepreneurs
at the JM site
• Develop distribution
centres in collaboration
with JDA
• Indigent food parcel
preparation and
distribution
• Donation of seeds to
produce food in food
gardens
• Sponsor
lifestyle
programmes
with fruit and
vegetables
• Prepare and
supply “food for
Waste” food
parcels
• Donation
of seed
received
from seed
producers
o
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
68
Strategic Renewal of JM A new Wave towards 2021
City Priority 3:- Agriculture and Food
security
CoJ: Departments: Health and Social
Development
CoJ Entities
City Priority 2
pro-poor
Pro poor development Social Development
Department
Human
Development
Department
Pikitup City Parks Johannesburg
Development
Agency
JPC • SMME and Co and
Informal Economy
Support
• Dispose land for urban
agriculture and Agro
processing through JPC
• Implement the
Township Economic
Development Plans
focusing on agro
processing hubs, food
empowerment zones.
o o o o o
Joburg Market 2018/2019 Business Plan
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69
Strategic Renewal of JM A new Wave towards 2021
ANNEXURE 3: EXECUTIVE MANAGEMENT TEAM
The Executive Committee of the Joburg Market consists of the following members:
Mr Ayanda Kanana – Chief Executive Officer
Ayanda Matriculated in 1999 and as sports lover played cricket for Kagiso
Cricket Club and later became Chairman of the Club. He Studied at Wits
University – was known as an active student –and served as Deputy
Chairperson of the Commerce Council. He further fulfilled the positions of
Chairperson of the House Committee at Barnato Hall.
He completed his articles at Deloitte and represented African Trainees in
this sphere. During his training he was generally rated as exceeding
expectations. During his training period as Audit & Learning Manager, he
developed new training concepts – S.W.A.T (Special Weapons & Tactics
training for audit trainees).
Ayanda continued to serve in various capacities and inter alia served on the Gauteng Cricket
Finance Committee. He joined the City of Johannesburg in 2010 serving from a governance
perspective on Audit Committees – City Parks & Zoo; Johannesburg Social Company; Mogale
City Local Municipality and the Randfontein Local Municipality. He further represented the
Audit Committee Chairman at the Group Audit & Group Risk Governance Committees of the
City of Johannesburg.
As Board member & Audit Committee member he was elected to ELIDZ – 2012, served as
Chairperson of the Audit Committee ELIDZ – 2016 and took up the responsibilities of
Chairperson of the Task Team for the financial turnaround of ELIDZ. From 2012 onwards
Ayanda served in the following capacities:
Support CFO at South West Gauteng College SWGC – 2012;
Director for Governance & Reporting at the City of Johannesburg Governance
Department – 2013;
Audit Committee member at SWGC – Invited back to contribute to the College;
Member of the SAICA Ethics Committee since 2017 – representing the public sector;
Appointed as the Acting Managing Executive at Metro Trading Co. – the Broadband
Company for CoJ – 2017.
As auditor he supported efforts towards assuring the general health of internal controls in local
government and focused on skills shortfalls. He prepared Clean Audit Plans for the
Municipalities that he has served. In particular he contributed to the Clean Audits for Mogale
City at the time, then Joshco, and recently for ELIDZ
Pertinent to enabling human resource capacity he has been tasked with the role of bringing
skills to local government:
Joburg Market 2018/2019 Business Plan
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70
Strategic Renewal of JM A new Wave towards 2021
• As part of Group Governance, he started a unit that hires professionals who look after
the shareholder interests;
• Started the CoJ #JoburgCAs programme as the first Training Officer for the CoJ in
this sphere which was conducted previously under National Treasury arrangements.
The City of Johannesburg is a R60 billion organization and needs the right skills in order to
ensure that it realizes clean audits – this is not a simple task – and Ayanda was entrusted with
reducing the Management Letter findings. He has been instrumental in the 2011 institutional
review of CoJ and now will be part of the reabsorption activities of the municipal entities into
departments as per the 2017 institutional review.
Ayanda is known for pursuing the drive to create a skills base for young professionals in local
government. He is a stern believer in hard work. This is evident in him becoming the youngest
Executive in the Executive Management Team, leading the Metro Trading Company – a
Broadband entity with 1150 km of fiber around Johannesburg.
He is looking forward in his new role to grow the JM beyond its current capacity and to create
linkages so that the entity can realize the dream of a 1-Gauteng Region able to ensure food
security. Linked to the latter is his dream of implementing unique programmes to grow
emerging farmers in Gauteng.
Mr Sifiso Dlamini – Chief Financial Officer
CFO to submit short CV.
Mr Josiah Mazibuko – Executive Manager Core Operations
Joe Mazibuko is the Chief Executive Officer (Acting) at the Joburg Market. He was appointed
as the Executive Manager: Core Operations from 1st October 2014 and was requested to
assume the acting role on 1 July 2015. He chairs the Executive Committee of the Joburg
Market.
Joe has over 25 years' experience working in industries such
as the energy, information and communication Technology,
Local Government, Engineering and management
consulting and has occupied a number of key executive and
senior management roles in both the public and private
sector entities.
He has amassed extensive knowledge in the management
of large, complex, multi-million rand projects in various
organisations. His main area of specialisation is Operations
Management, Business Strategy Development &
Implementation Management, System Implementation and Strategic Management Consulting.
As the Chief Executive Officer (Acting) of Joburg Market, his key job functional outputs entail
amongst others:
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71
Strategic Renewal of JM A new Wave towards 2021
Leading and directing JM’s business, consistent with the strategy and commercial
objectives agreed by the Board.
Leading the executive team in effecting the Board's, and where applicable its
Committees', decisions.
Ensuring that the Board is alerted to forthcoming complex, contentious, emerging or
sensitive issues affecting JM of which they might otherwise not be aware.
Working with other executives, for proposing, developing, implementation and
monitoring of JM’s strategy and overall commercial objectives, in consultation with the
Chairman and the Board.
In delivering JM’s strategic and commercial objectives the Chief Executive Officer is
responsible for the maintenance and protection of the reputation and image of the
Company.
Apart from other short term certificates, Joe counts amongst his qualifications the following:
• A Master of Science Degree in Engineering Management from the University of
Warwick;
• A Senior Managers Programme from Henley Business School;
• An Information Technology Leadership Programme from the WITS Graduate
School of Business Administration;
• A Management Development Programme from the University of South Africa; and
• A National Diploma: Electrical Engineering.
• International Leadership Development: Henley Business School.
Mr Tshifhiwa Madima – Executive Manager: Agri-Business
Tshifhiwa Madima is the Executive Manager: Agri-Business. He was appointed into his current
position on 1st November 2014 and is a Member of the Executive Committee of the Joburg
Market.
As the Executive Manager: Agribusiness, Tshifhiwa is tasked
with the following responsibilities:
the development and implementation of Food Security
and Agro Processing strategies aligned with the City of
Johannesburg;
the development of the Agricultural Intelligence resource
centre with in the Joburg Market; and
the development of agro industry enterprises .
Tshifhiwa is an Agricultural Economist by profession and has over 15 years’ experience in the
Agricultural Sector. Part of his work experience includes the following;
Researcher in the Land Reform Unit: Land and Agriculture Policy Centre;
Agricultural Economist: Limpopo Department of Agriculture;
Head: Field Crop Section: National Agricultural Marketing Council;
Joburg Market 2018/2019 Business Plan
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72
Strategic Renewal of JM A new Wave towards 2021
Manager: Agriculture, Food and Beverages: Industrial Development Corporation; and
Director: Agro-processing at the Department of Trade and Industry.
Senior Technical Project Manager: CapaCity Building: Food and Agriculture
Organization of the United Nations in South Africa,
Tshifhiwa counts as part of his qualifications the following;
Master’s Degree: Agricultural Economics: University of Pretoria.
Honours Degree in Agricultural Economics: University of Pretoria.
Bachelor of Agricultural Management degree: University Limpopo.
International Leadership Development: Henley Business School.
Municipal Executives Finance Management: WITS Business School.
Ms Sibongile Motloung: Senior Manager: Internal Audit
Ms Sibongile Motloung is the Senior Manager: Internal Audit. Sibongile joined the JM on 1st
October 2016 and is also a Member of the Executive Committee.
As Senior Manager: Internal Audit, Sibongile has, amongst
others, the following responsibilities;
Establishing appropriate policies and procedures to
guide the internal audit function
Ensuring that the internal audit unit is appropriately and
sufficiently resourced to achieve its operational
objectives
Providing assurance to management, the Audit and Risk
Committee and the Board, on the effectiveness of risk
management, governance and internal control
processes of the Joburg Market;
Coordinating assurance activities through implementation of a Combined Assurance
Framework
Ensuring that the internal audit function carries out its work in conformance with the
professional internal auditing standards;
Sibongile is a Certified Internal Auditor by profession and has over 17 years’ internal auditing
experience. She previously worked for:
SEDA as Chief Internal Auditor
Gauteng Treasury as Chief Director Risk and Compliance Audit
KPMG as Senior Manager Internal Audit
Afrox as Project Manager Internal Audit
Sibongile holds the following qualifications:
Certified Internal Auditor (CIA);
Certification in Self-Control Assessment (CCSA)
Honours Degree in Business Management;
Bachelor of Commerce.
Joburg Market 2018/2019 Business Plan
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73
Strategic Renewal of JM A new Wave towards 2021
ANNEXURE 4: SERVICE DELIVERY AGREEMENT BETWEEN THE COJ & COMPANY
Joburg Market
Core Service Service Level Standard
1. Opening a new buyer account Within 20 minutes
2. Electronic Sales Processing System
disruptions
Mirror/back-up 12w system to go live:
within 55 minutes
3. Time to resolve cashiering queries
when clients are depositing
money
Resolution of depositing queries within 30
minutes
4. Repairs of infrastructure facilities Commencement of repairs on reported
infrastructure breakdown within 24 hours
5. Repairs to ripening facilities 95% availability of banana ripening
rooms
6. Cold Room facilities
Average temperature variance not
greater than 10% of agreed customer
requirements
7. Stakeholder complaints Response within 12 response
Resolution within 48 hours
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
74
Strategic Renewal of JM A new Wave towards 2021
ANNEXURE 5: ORGANISATIONAL STRATEGIC RISK REGISTER – To be replaced with cleaned up register once Board approves
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
1
Ensure
Financial
sustainabil
ity and
growth of
the entity
Strategic Revenue
Stagnant/
Low
growth
1. Inadequate
trading
infrastructure
2. Legislative/
HACCP
requirements
3. Limited
new revenue
streams
4. Poor
trading floor
space
management
1. Business
closure
2. Financial Loss
Critica
l
5
Alm
ost C
ert
ain
or
Co
mm
on
5
Very
Hig
h
25
1. Monthly
assessments of
current industry
practices
2.
Benchmarking
Poor
0.90
Very
Hig
h
22.
5
5 4.5
CEO
1. Develop a
business case for
space optimisation
2. Development of
the implementation
plan for space
optimisation
3. Develop of the
Agro processing hub
4. Upgrading for halls
1. 2 and-9 optimise
to strengthen the
core business
Executive
Core
Operation
1. Business
case finalised.
Will be
presented to
EXCO
2. Space
Optimisation
Project awaits
signing of SLA
with JPC
3. HACCP
compliant -
Conceptual
documents
finalised.
4. HACCP
compliant -
Awaits signing
of SLA with
JPC
31 July
2018
31 July
2018
31 July
2018
Quarterly
monitoring
2
Operate a
sustainabl
e resilient
premier
marketing
and
trading
facility
Asset
Loss
Ageing
infrastruct
ure and
maintenan
ce
backlog
1. Reactive
maintenance
due to
backlog
2.
Outstanding
preventative
maintenance
plans
3. Inadequate
internal
capacity
4. Poor
maintenance
of facilities
5. Poor
trading floor
management
1. Inability to
keep up with
industry
requirements
2. Possible non-
compliance
resulting in
possible injuries,
loss of life, loss of
income,
penalties, fines,
litigation and
insurance claims
3. Damage to
reputation
4. Possible
reduction in
supply of fresh
produce and
corresponding
loss of revenue
5. Increase in
direct sales
6. Decrease in
Critica
l
5
Alm
ost C
ert
ain
or
Co
mm
on
5
Very
Hig
h
25
1. CAPEX and
OPEX
structures
established to
monitor
spending on
maintenance
2. Independent
contractor for
plumbing has
been appointed
3. Appointed
additional
technical
resources
internally
4. Appointed
engineering
service
providers to
oversee the
maintenance of
the ammonia
plant
Poo
r 0.90
Very
Hig
h
22.
5
5 4.5 CEO 1. Two remaining
disciplines to be
appointed for
preventative
maintenance to
address the back log.
2. Team for proactive
maintenance
identified to monitor
schedule and be
seen as proactive by
the tenants.
Executive
Core
Operation
1.
Appointment
of Building &
Civil
Contractors at
an advanced
stage.
Awaiting
award
2. Repairs &
maintenance
have been
expedited. R
9.7 million
spent in
quarter 1 of
2017/2018
31 Aug
2018
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
75
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
customer
satisfaction levels
7. Increased
pressure from
stakeholders
5. Preventative
maintenance
plan in place
3
Ensure our
staff are
engaged,
skilled,
motivated
and
satisfied
Human
Capital
Demotivat
ed staff /
Poor
performan
ce and
productivit
y
1. Low staff
morale
2. Salary
discrepancies
3.
Inconsistent
application of
policies
4. Lack of
consequence
management
5. Lack of
constant
review of the
policies
6. Inadequate
communicatio
n
1. Loss of
institutional
knowledge
2. Increased
workload on
existing
employees
3. Negative
impact on service
delivery
4. Operational
inefficiencies
Critica
l
5
Alm
ost C
ert
ain
or
Co
mm
on
5
Very
Hig
h
25
1. Approved
and
implemented
talent
management
policy
2. Individual
training and
development
plans
3. Identified
training
programs, KPI
measured
monthly
Poor
0.90
Very
Hig
h
22.
5
5 4.5 CEO 1. Formal follow up
and communication
with the Shareholder.
2. Implementation of
the agreements.
3. and
4. Intensify
awareness training
around policies.
Update the M drive
with the new and
updated policies.
5. Adopt
consequence
management
framework from the
CoJ and the
implementation
thereof.
6. Constant review of
policies. Intensify
frequency of
departmental
meetings and
reporting to Exco by
management of
meetings held
inclusive of
submission of
minutes of the
meeting
7. Investigate
possibility of posting
policies on intranet
Shared
Services
Executive
Executive
Strategy &
Transform
ation
1-2.
Shareholder
agreements
implemented
3. Approved
policies
posted on m-
drive and
communicated
to employees
4. Documents
to serve at
EXCO and
Board
5.Policy
reviews due in
2nd quarter
6. Staff
meetings to
resume with
new CEO
7. Workshop
with IT
1.31 July
2018
2.31 July
2018
3. 30 Sep
2018
4. 31 Aug
2018
5.30 July
2018
6. 30
September
2018
7. 30
September
2018
4
Become
an agent
for socio-
economic
transforma
tion
Operation
al
Failure to
meet
sharehold
er
expectatio
n as per
the
service
1. Lack
trading space
to attract
emerging
black agents.
2. Access to
the market by
the emerging
1. Business
closure
2. Financial Loss
Critica
l
5
Lik
ely
4
Very
Hig
h
20
1. System
processes
reengineered
Poor 0.90
Hig
h
18
5 3.6 CEO 1. Develop a
business case for
space optimisation:
2. Development of
the implementation
plan for space
optimisation:
3. Continuous
1-2
Executive
Core
Operation
Executive
Agri
business
1. Business
case
developed.
Awaits
presentation
to EXCO
2. Space
Optimisation
15 Aug
2018
30 Sep
2019
30 May
2019
30 April
2019
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76
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
delivery
agreemen
t
Farmers
3. Inadequate
utilisation of
the floor
space
(tenants
allowed to
use their own
cold storage
encroaching
on space that
could be
utilised for
new tenants)
4. No long
term
commitments
with
funders/partn
ers to drive
the food
security
program
5. SDA not
signed by all
parties
6. Lack of
enterprise
and
development
strategy.
7. Low
productivity
by internal
service
provider
(Increase
down time,
attendance
transgression
s, late
delivery of
outputs and
reports, poor
communicatio
n an security
provision)
implementation of
access programs
4. Negotiate long
term MOA with the
funders/partners
(CoJ and DSD)
5. Facilitate the
signing of the SDA
6. Development and
Implementation of
the Enterprise
Development
strategy
7. Consequence
Management for
poor performance
8. Documentation of
business processes,
identification of gaps
9. Proper monitoring
systems designed,
implemented and
provide accurate
audit trail
10. Implementation
of process flows that
streamline how
projects are rolled
out and initiated
Executive
Agri
business
Executive
Strategy
and
Transform
ation
Project awaits
signature of
SLA with JPC.
3. Market
access
program
implemented
in Limpompo
(Bela-Bela
and Tompi
Seleka
College)
4. Annual SLA
with CoJ DSD
developed and
submitted to
CEO's office
for approval
15 June
2019
31 June
2019
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
77
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
5
Regulator
y
Noncompl
iance to
OHS Act
and GMR
1. Inadequate
capacity
2. Inadequate
systems
3. Lack of
enforcement
and
monitoring
4. Culture of
Apathy
5. Lack of
accountability
1. Possible
litigation, fines
and penalties
resulting in a
financial loss
2. Possible loss
of life or injury on
duty
3.Possible
closure of the
Market
4.Loss of fresh
produce supply
5.Possible audit
qualification
6.Damage to
reputation
Critica
l
5
Alm
ost C
ert
ain
or
Co
mm
on
5
Very
Hig
h
25
1. Enforcement
of the Market
By-law
2. Focus
groups
provided with
specific training
in respect of
legislations
applicable to
these groups.
3. Interaction
with DAFF
legislations
(Department of
Agriculture
Fisheries and
Forestry)
4. Yearly
assessment of
the Laboratory
to comply with
the Food safety
standards
(SANAS
accreditation
retained)
Fair 0.50
Hig
h
12.
5
5 2.5 CEO 1. Develop a
business case for
motivation for the
budget (Capacity and
systems)
2. Awareness
campaign
3.Enforcement of the
by-laws
Shared
Services
Executive
31 Aug
2018
6
Business
Continuity
Business
interruptio
n/s
1. Power
outages
2. Water
supply
disruptions
3. Industrial
action
4. Failing /
unavailability
of trading
platform
(SPS)
5. Natural
disasters
6. Lack of
business
continuity
plans
1. Loss of
revenue
2. Damage to
reputation
3. Increase in
insurance claims
4. Possible loss
of life or injury
5. Possible
damage to
infrastructure
6. Down time of
the market
resulting in
dissatisfied
customers and
increased
pressure from
stakeholders /
business partners
Critica
l
5
Alm
ost C
ert
ain
or
Co
mm
on
5
Very
Hig
h
25
1. Onsite UPS
and generators
(weekly testing
of generators)
2. LLF (Local
labour forum)
has been
established and
functioning
3.Labour
agreements
and monthly
meetings with
labour forums
4. Fire
suppression
systems and
fire
extinguishers
which are
Fair 0.50
Hig
h
12.
5
5 2.5 CEO 1. Finalisation and
implementation of a
clear outage
management
communication
strategy:
2. Appointment of
PSP to provide
rational designs for
portable water and
automatic fire
suppression:
3.Implementation of
the Business
Continuity strategy
/Business Impact
Analysis/Disaster
Recovery Plans
4. Installation of
additional firefighting
Core
Operations
Shared
Services
1. Power
outages are
effectively
managed with
clear
management
communicatio
n plans been
implemented.
For planned
outages,
proactive
communicatio
ns are
provided to
stakeholders.
For unplanned
outages, an
electronic
communicatio
Quarterly
Quarterly
In place
30
Septermbe
r 2018
30
November
2018
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
78
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
7. Increase in
fraud related
activities
8. Temporary loss
of data integrity or
availability
9. Fragmented
communication
and confusion /
disorder
10. Delayed
recovery due to
ineffective crises
management
serviced
annually
5. Duplicate
trading platform
(tested
quarterly)
6. Continuous
engagement
forums with
utility suppliers
(water and
electricity) and
EMS, Joburg
market
management
and agent’s
forum
7. Redundancy
of SPS (Sales
Processing
System) has
been created
and is
monitored &
synchronised in
real time
8. Short term
insurance with
AON
9. Continuous
testing of
evacuation
procedures and
conducting
evacuation
drills
10. Gen farm
has been
completed and
commissioned
11. JM has a
hotline with City
Power to
resolve
outages. All
queries a
logged and City
equipment in the
market as per
legislation:
5. Installation of fire
sprinklers in the
entire market:
6. Duplicate SPS
infrastructure tested
quarterly
n channel has
been
developed and
implemented.
It consist of all
the key
stakeholders.
2. A PSP has
been
appointed.
The Potable
water and Fire
Suppression
Project is
being
implemented.
Completion
and hand-over
scheduled for
December
2017
3. BCM has
not been
allocated
budget
4.The fighting
tender was
awarded and
the SLA was
approved by
EXCO
5. The storage
tanks project
is underway.
once the
storage tanks
are
commissioned
, the sprinklers
will be
installed.
6.Fail-over to
duplicate SPS
trading
platform was
tested
successfully
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
79
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
Power issues a
reference
number and are
resolved within
12 hours
12. Quarterly
staff meetings
and regular
EXCO
meetings and
update on
business
continuity
measures
on the 19th
September
2017
7
Ensure
effective
stakeholde
r
managem
ent
Stakehold
er
Managem
ent
Ineffective
stakehold
er
engagem
ent
1.
Stakeholder
engagement
plans has not
been
implemented
2.
Unstructured
and poor
coordination
of stakeholder
management
responsibilitie
s
3.Miscommun
ication and
lack of
consistent,
standard
messages,
feedback to
the
stakeholders
4. No
alignment,
integration,
and
understanding
of our
stakeholders
5. Slow
reaction to
client request
1.Dissatisfied
stakeholders
2.Increased
pressure from
stakeholders
3.Negative
perception of JM
leading to
damage to
reputation
4.Operational
inefficiencies i.e.
delay in project
approvals etc.
Critica
l
5
Lik
ely
4 V
ery
Hig
h
20
1. Completed
and updated
stakeholder
matrix
2.Stakeholder
forums in
certain areas
together with
quarterly
reporting
3.Approved and
implemented
shareholders
compact
together with
quarterly
reporting
4.Attendance of
industry related
events, grower
associations /
forums and
symposiums
5. Annual
stakeholder
satisfaction
survey
conducted.
Customer
Satisfaction
Survey
completed with
focus on
Fair 0.50
Mo
dera
te
10
5 2 CEO 1. Implementation of
the stakeholder
management plan
2- 4 Define the
responsibilities and
provide training and
awareness
Executive
Strategy
and
Transform
ation
1. The
Stakeholder
management
plan is being
implemented
with
Stakeholder
engagement
activities
undertaken
during Q1.
A report is yet
to be
submitted to
the Social &
Ethics
Committee in
Q1.
2. The
process of
defining
responsibilities
and providing
training and
awareness is
outstanding to
due lack of
resources in
the area. The
employee has
since retired
and not
Quarterly
30 Sep
2018
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
80
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
and
complaints
customer.
6. Scheduled
meetings with
key
stakeholders
7. Monthly
Stakeholder
visits which are
done
across(Farmers
, City,
8. Training of
the Emerging
Farmers
9. Agri business
Bulletin
10. Monthly
sales and
volume
reporting
presented
Internally and
stakeholders
11. Exhibitions
in collaboration
with
Stakeholders
12. Stakeholder
Forums for
Market Agents
and Mandela
Market
13. Quarterly
reports on
Stakeholder
Engagement
developed and
submitted as
part of the
performance
quarterly
reports
replaced to
date.
8
Fraud
and
Corruptio
n
Theft,
fraud and
corruption
1. Lack of /
inappropriate
segregation of
duties
2. Greed,
1. Possible
financial loss
(incl. fruitless and
wasteful
expenditure)
Critica
l
5
Lik
ely
4
Very
Hig
h
20
1. Approved
and
implemented
anti-fraud
policies and
Fair 0.50 M
od
era
te
10
5 2 CEO 1. Review of the
fraud and corruption
policy
2. Conducting fraud
risk assessment
1. Anti-Fraud
and
Corruption
Policy
recommended
Quarterly
30 Sep
2018
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
81
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
dishonesty,
need
(challenging
personal
financial
circumstance
s) and
opportunity
3. Lack of
definition and
understanding
of conflict of
interest
4. Inadequate
internal
control
environment,
including IT /
information
security
5. Lack of
accountability
6. Lack of by-
law
application
7. Tender
fraud and
trade
skimming
2. Possible audit
qualification
3.Damage to
reputation
4. Increased
pressure from
stakeholders
5.Potential
litigation
procedures /
Implemented
anti-fraud
hotline with
follow up /
Fraud
awareness
workshops /
Whistle blowing
processes
2. Follow up
activities of
reported fraud
(disciplinary
processes and
handing over to
SAPS)
3. Conflict of
interest
declarations
process
4.
Reconciliation
processes /
Segregation of
duties
5. Induction and
training on
policies
6. Internal audit
reviews
7.
Investigations
on alleged
cases
8. JM adopted
Systems Act
Code of
Conduct for
employees. All
new employees
sign a code of
conduct on
appointment.
3. Appointing a
service provider to
conduct the
workshop on Code of
Conduct
4. Review of the
ethics policy
5. Process in motion
to appoint service
provider to conduct
fraud and ethics
awareness and
training
6. Consequence and
accountability
management
processes
7. Enhance
Monitoring and
evaluation
processes.
by EXCO for
approval by
the ARC.
Policy will be
tabled at the
ARC Meeting
on 3 Oct 2017
2. JM has not
developed the
fraud risk
register as yet
(GRAS
conducts the
risk
assessments)
Joburg Market 2018/2019 Business Plan _________________________________________________________________________
82
Strategic Renewal of JM A new Wave towards 2021
Ran
kin
g Departme
nt/ MOE
Objective
s
Risk
Category
Risk
Name
Causes of to
the risk
(Background
)
Consequences
Imp
act
Lik
elih
oo
d
Inh
ere
nt
Ris
k
Current
controls
Control
Effectivene
ss
Resid
ual
risk
Imp
act
Lik
e-
lih
oo
d
Risk
Owner
Actions to improve
management of the
risk
Action
Owner Update Time scale
9
Informatio
n and
Knowledg
e
Managem
ent
Inadequat
e
information
managem
ent
1. Lack of
integrated
information
management
processes
2. Lack of
knowledge
management
control
3. Non-
adherence to
minimum
information
security
standards
4. Lack of
adequate
document
storage
facilities /
archives
5. Lack
information
sensitivity
classification
and
associated
safeguarding
measures /
treatment
thereof
1. Loss of data
and historical
information
2. Possible non-
compliance with
legislation
resulting in
litigation, fines and
penalties
3.Lack of
supporting
information in
cases of
investigations
4. Damage to
reputation
5. Breach of
confidential
information
6.Potential
fraudulent
transactions
7.Negligent or
intentional
dissemination of
confidential
information
Maj
or 4
Likel
y 4
Hig
h
16
1. Approved IT
security policy
2. Approved IT
access policies
3. Information
back-up
procedures
(monthly testing
of successful
restoration)
4. Manual and
electronic filing
of documents
5. Physical
access controls
(biometric
scanners, 24h
security)
6. Multi-level
logical access
controls and
user access
profiles
7. Network
security
(firewalls, anti-
virus)
8. Service level
agreement with
document
management
services and off-
site storage
facilities (paper-
based
documentation)9
. Physical
document
registry in
compliance with
the archives
ACT
10. Document
management
system rolled
out to Company
Secretariat and
SCM tender
office
Fair 0.50
Mo
dera
te
8
4 2 CEO 1. Finalise the roll out
of electronic
document
management system
to the rest of the
entity.
2. Review and
consider PoPI and
PAIA requirements
with regards to access
information
3. Investigate
alternative archiving
options and build
necessary capacity to
classify information
and roll out to the rest
of the entity
4. Develop a section
14 access to
information manual
5. Appointment of the
Records Officer 6.
Develop a filling
system process
SNR
Manager IT
Long term ICT
strategy to be
developed
31 Aug
2018
Stakeholder Management Strategy
Page 84
1. Rationale
The stakeholder engagement strategy outlines Joburg Market (JM)’s approach to working
with its stakeholders. Engagement forms an integral part of developing the Company
understanding of the fresh produce industry and the risks it presents to the organisation.
This will assist in shaping and delivering on the strategic objectives and priorities.
JM has a large and diverse stakeholder group and therefore recognise that it should engage
with different stakeholders for various reasons and that the Company should enable diverse
interests and individuals to contribute to the JM’s business in a constructive manner where
everyone has an opportunity to contribute meaningfully.
The Company recognises that stakeholder have different levels of influence on the its
operations and the broader industry and thus they have varying area of interest, JM’s
engagement will therefore operate at different levels where appropriate. The Company
intends to develop new relationships and recognise changing levels of stakeholder
influence in future engagement activities.
The strategy outlines the JM’s stakeholder engagement process to support the delivery of
key organisational objectives. It further explains why stakeholder management and
engagement is important for JM and thus forms an integral part of developing an
understanding of the fresh produce environment within which the JM operates.
Effective management of stakeholders is a key component for successful achievement of
organisational objectives, thus proper stakeholder management is imperative towards
gaining support for projects and anticipating resistance, conflict, or competing objectives
among the different stakeholders. Since strategy is often associated or linked to
stakeholders, it is important that when organisations formulate their strategies they should
properly consider the needs and desires of stakeholders.
The JM stakeholder management strategy will:
identify and classify stakeholders;
determine stakeholder power, interest, and influence;
Analyse the management approach and communication methodology for each
category of stakeholders.
This process will also allow for the identification of key influential stakeholders from whom
the JM can solicit input for strategic planning and gain support for various project
identification, implementation and progress. Furthermore JM should ensure that
stakeholders have every opportunity to influence strategic initiatives within Company’s
mandate and ensure that the views of various stakeholders are reflected by:
Involving key stakeholders in extensive discussion and debate around the future of
a sustainable JM;
Building and maintaining relationships and developing trust among JM’s
shareholder, staff, and three spheres of government, business partners and the
affected communities.
The premise of the strategy is that informed stakeholders will participate in improving JM’s
Stakeholder Management Strategy
Page 85
management approach. To achieve this, the organisation’s communication approach will
be simple, clear, easy to understand, educative, stimulating and will also promote
awareness.
2. Background
In conducting their business, the JM interacts on a daily basis with various stakeholders
ranging from government, investors, partners, customers, employees and different interest
groups.
The increasing level at which the JM is expected to participate towards economic
transformation projects in South Africa requires the Company to implement clear lines of
communication and interaction with all stakeholders to better manage their expectations.
These necessitates the process of formulating a stakeholder engagement strategy which is
aimed at ensuring that informed stakeholders actively participate in improving the
management approach of providing a world class trading facility and associated strategic
projects and deliverables.
JM’s stakeholder management process is fragmented with executives and managers
interacting independently in an unstructured manner with stakeholder representatives. The
absence of a coordinated stakeholder communication approach at corporate and divisional
level subjects JM to the following key challenges that hamper effective stakeholder
management:
Lack of a clearly defined stakeholder management process;
Absence of or lack of coordination between divisions in managing stakeholders i.e.
information sharing on interaction;
Lack of structured communication and feedback internally;
Lack of a centralized stakeholder management database to ensure accessibility to
relevant parties in the JM;
Absence of formal and systematic record keeping of interactions with stakeholders;
Absence of monitoring and evaluation process to establish the impact of the
strategic relationships to measure the value added by stakeholders.
Furthermore the King III code of corporate governance indicates that managing stakeholder
relationships is a critical area for organisations to operate effectively thus the following
principles are recommended for consideration by the JM leadership:
Recognition of the legitimate interests of stakeholders in its decisions;
Proactive management of the relationships with its stakeholders;
Identification of mechanisms / processes that promote enhanced levels of
constructive stakeholder engagement;
Building and maintaining relationships through transparent and effective
communication;
Promoting mutual respect with stakeholders;
Establishing a formal process of resolving internal and external issues;
Selecting an appropriate representative individual/team to represent alternative
dispute processes.
Stakeholder Management Strategy
Page 86
3. Definition of concepts
3.1 Stakeholder definition
A stakeholder is defined as “an individual or group with interest in the organisation and
its services or systems that affects or can be affected by an organisation’s actions” or
“person, group or organisation that has a direct or indirect stake in an organisation”.
The JM identifies a stakeholder as an individual or institution that would assist in
achieving the objective of augmenting or supporting the desired economic growth
impact that the Company contributes to.
Stakeholder management is the process of managing the expectation of anyone that
has an interest in the organisation or will be affected by its deliverables or outputs. It is
important to understand the values and issues that stakeholders have in order to
address them and keep everyone informed. The value derived from stakeholder
management is that it galvanises diverse entities so that all can work together in unison
and seamlessly. Without it, there is no bond and no common purpose.
There are two major elements to Stakeholder Management: Stakeholder Analysis and
Stakeholder Planning. Stakeholder Analysis is the technique used to identify the key
people who have to be won over, whilst Stakeholder Planning focuses on building the
support required for success. It is important to note that stakeholder management is
strongly linked to vision and strategy which requires analysis, planning and monitoring
to stay on track.
3.2 Stakeholder engagement
The process outlines the development of engagement principles of when to and when
not to engage with a stakeholder. There is recognition that objectives for engagement
have different levels of importance to stakeholders and that on some issues there may
not be much point in engaging with some stakeholders.
Organisations engage their stakeholders in dialogue to find out what special and
environmental issues matter most to them and about their performance in order to
improve decision-making and accountability. Engaging stakeholders is a requirement
of the Global Reporting Initiative, King III, the JSE-SRI and the new Companies Act.
Inclusive engagement of stakeholders forms some of the requirements of integrated
sustainability reporting which stipulates that business should have formal processes of
engaging stakeholders in an effort to:
align mutual interest;
reduce risk;
advance financial, social and environmental performance;
Incorporate views of the stakeholders in the compilation of reports that address
sustainable development.
Stakeholder Management Strategy
Page 87
There are currently no formal principles used in JM to consider whether to engage with
a stakeholder or not. The absence of formal principles creates a risk of inadequate
stakeholder management as there is no identification and prioritisation of issues which
is necessary for the success of an engagement strategy. The JM should therefore
consider engaging stakeholders when:
There is a major issue confronting the stakeholder;
There is sufficient overlap between the stakeholder’s objectives and concerns
and those of a stakeholder;
There is concern about the impact of the stakeholder’s goals or strategies;
It is necessary to improve the stakeholder’s knowledge about an issue;
There is an opportunity to help shape the stakeholder’s goals and strategies;
The stakeholder has sufficient influence over a decision;
The stakeholder needs to create more options for a planned action.
Although the JM stakeholder management team gives directive on the process of
engaging a stakeholder, it is important to note that the engagement with stakeholders
should be conducted through regular meetings and forums held at the relevant
corporate and divisional level. Other forms/mechanisms of engagement can also be
introduced.
3.2.1 Purpose of engagement
To support and communicate organisational strategy including objectives and
priorities;
To build an open relationship with JM’s identified stakeholders through transparent,
fairness, integrity and accountability;
To acknowledge that JM has different stakeholders who can affect the achievement
of strategic objectives and its sustainability;
To assess the performance through engagement with stakeholders that serves to
provide tangible performance indications, quality of outputs and eventually lead to
significant organisational improvement.
3.2.2 Strategic goal
JM’s goal is to ensure that all stakeholders have an opportunity to contribute to its
current and future business operation processes and activities so that their needs are
met in a satisfactory manner.
3.2.3 Strategic objectives
The strategy aims to achieve the following organisational objectives:
Achieving the vision of the Market of the Future (MotF);
Transformation and Black Economic Empowerment (BEE);
Food security.
3.2.4 Principle of engagement
JM engagement is informed by the following principles:
Stakeholder Management Strategy
Page 88
Congruence One version of the truth. We say what we mean, and mean what we say regardless of the stakeholder or communication channel.
Consultative Develop relationships where stakeholder views are considered in decision-making and we provide various channels to foster this
Collaborative To establish deep partnerships with stakeholders aligned to values and work closely with selected partners and interested stakeholders to build a more sustainable business and society.
Communicative Value open, honest and on-going communication with all stakeholders and are proactively committed to such.
Commitment Committed to working towards creating a prosperous and sustainable future for all South Africans and leveraging effective stakeholder engagement to help with the achievement of this.
Responsive Strive for continuous improvement and proactively respond to changing business conditions and stakeholder needs, interests and expectations.
4. Identification of stakeholders
It is important that all stakeholders are identified regardless of how major or minor they are.
If stakeholders are omitted there is likelihood that they may become evident at some later
stage of a business process thus posing obstacles and delays to the success of the
organisational process.
The identification of organisational stakeholders forms a very important step towards
formulating stakeholder management strategy. It is therefore very important that great care
and effort is dedicated to the process.
The following stakeholder identification process is used as a criterion to determine if an
individual will be included as a stakeholder for the organisation:
Will the person or their organization be directly or indirectly affected by the
organisation?
Does the person or their organization hold a position from which they can influence
the organisation?
Does the person have an impact on the intended project’s resources (material,
personnel, funding)?
Does the person or their organization have any special skills or capabilities the
project will require?
Does the person potentially benefit from the project or are they in a position to resist
this change?
Individuals and organisations that meet one or more of the above criteria have been
identified as stakeholders for JM.
The JM has identified its stakeholders in terms of the following categories:
Shareholder (the City of Johannesburg)
Board of Directors
Partners (Market Agents, Farmers)
Producers Associations (AFASA, AGRI-SA, NAFU, SENWES, TAU, WARD, YARD,
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etc.)
Regulatory bodies (APAC, National Treasury, Auditor General, DAFF, etc.)
National Departments (Eskom, Cogta, etc.)
Provincial government/departments
Investors and finance institutions
Clients (Retailers Hawkers / vendors, Private sector, Public sector, etc.)
Municipal owned entities
Beneficiary communities
Competitors
Employees
5. Strategy process
5.1 Stakeholder analysis / classification
A stakeholder management team consisting of representatives from various divisions
in the organisation will be formed with the purpose of listing, consolidating and
analysing the JM’s stakeholders. Analysing stakeholder groups enables an
understanding of their requirements, power, interest in, and impact on the organisation
so that communication and channels of communication can be based around their
particular interests, issues and needs.
The stakeholder engagement process assesses the needs of stakeholders, defining
the areas that each stakeholder is interested in and communicating with them based
on their needs.
The stakeholders are categorised based on the level or importance to the Company
and its operations. The stakeholder analysis matrix illustrates the concerns, level of
involvement, and engagement strategy for each stakeholder.
The chart below depicts stakeholders and the level of power / interest they have on JM.
NB: Organisations with similar interest or power are grouped in order to simplify
communication and stakeholder management.
No Group Functional relation
Principal involvement
How addressed
A. Governance
1 CoJ Governance Shareholder
Sole owners of the JM
Through Cluster forums and standard reporting
2 Board of Directors
Governance of JM
Governs JM in terms of SDA
Pursue sound and effective reporting and providing strategic support
3 DED Lead Department
Sectorial link to CoJ Cooperate with Cluster structures towards integrated service delivery
B. Company
1 Staff Employees of JM
Managers and employees
Pursue a culture of professional service delivery
2 Unions Trade Unions SAMWU / IMATU Promote good communication against the backdrop of JM being a 24 hour operation
3 EPWP Job creation Extended Public Works Programme
Utilize local job seekers and prepare them with basic skills to enhance permanent employment possibilities
C. Core Business
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No Group Functional relation
Principal involvement
How addressed
1 Farmers Production of produce
Supply JM from across RSA
Promote market services of JM to producers through participation in Industry events and farm visits
2 Transporters Logistics – Farm to Market
Private contractors Promote delivery compliance for an orderly delivery environment through regulation of the logistical system at JM
3 Market agents
Conducts actual selling of produce at JM
Private institutions Communicate through a dedicated forum with agency directors and their sales staff
4 Commercial Buyers
Buying of produce at JM
Distribute and process fresh produce
Communicate and support through customer services kiosks on the trading floors of JM
5 Informal sector buyer
Informal traders
Intensive distribution in various areas
Promote interaction through product handling coaching and customer care kiosks
D. Markets at JM
1 Mandela Market
Traders at JM site established through empowerment programmes
Stall markets on JM site
Communicate through a dedicated forum with the operators of trading stalls 2 Unity Market
E. Apron services at JM site
Pallet runners
Porters
“Bakkie” operators
Cooking “mamma’s”
Recyclers
Rendering of support services to traders on market for own account
Communicate with operators through the property department which includes 1-on-1 interactions
F. Tenants
Food distributors
Processors
Meat/fish traders
Soft drinks
General hospitality producers
Rendering services enabling clientele to utilise JM site as “one stop” shopping centre
Communicate with operators through the property department which includes 1-on-1 interactions
G. Financial services
Banks Servicing buyers on JM to conduct transactions
Communicate through the Finance Dept. on a daily basis to ensure real time services continuity
H. Suppliers
Multiple services rendered at JM site
Cleansing
Security
Waste disposal
Amenity gardens and land maintenance
Communicate through advertising supplier opportunities in the media and company website supplemented by briefing sessions
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The power / interest matrix is used to evaluate the expectations and impact of particular
stakeholder, it further illustrates the potential impact each stakeholder may have on the project by
making assessments against the following questions:
How interested is each stakeholder group in the JM’s decisions?
What power and influence can the stakeholders exert on the organisation’s
decisions?
The chart below depicts the organisation’s stakeholders. Each letter represents a
stakeholder in accordance with the key in the chart above.
The power / interest analysis chart indicates that:
Stakeholders E, and F reside in the lower left quadrant of the matrix and therefore
require minimal stakeholder management;
Stakeholder A and G in the upper left quadrant, must be kept satisfied by ensuring
concerns and questions are addressed adequately;
Stakeholder I and J in the lower right quadrant, should be kept informed through
frequent communication on project status and progress;
Stakeholders B, C, D and H, in the upper right quadrant, are key players and must be
involved in all levels of project planning and change management. Furthermore these
stakeholders should form part of all project status meetings, reviews and ad hoc
meetings as required.
The stakeholder analysis matrix is aimed at capturing stakeholder concerns, level of
involvement, and management strategy based on the stakeholder analysis and power/interest
matrix above. The stakeholder analysis matrix will be reviewed and updated as required by
(A, G) Keep Satisfied
(E, F) Monitor
(B, C, D, E, H) Manage closely
(I, J) Keep Informed
High
Power
Interest High
Low
Low
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the organisation in order to capture any new concerns or stakeholder management strategy
efforts.
This process will then lead to the formulation of a stakeholder engagement and communication
plan with specific communication methods for each stakeholder. It also determines the
appropriate levels of communication and participation each stakeholder will have on the
organisation.
Strategies of engagement
Priority provide to general channels of information
Keep involved and informed but ensure balance between concerns of high influence
stakeholders and those people actually impacted by decisions
Treat fair – honour commitments to these stakeholders in line with policy, regulations
and industry norms.
o Otherwise endeavour to keep stakeholders satisfied insofar as balance of costs and
benefits allow.
Strategic threats or opportunity – invest in engagement process to understand
concerns and develop solutions
5.2 Approach to engagement
5.2.1 Stakeholder engagement
A stakeholder engagement plan outlines the process of how JM engages with various
stakeholders in terms of issues and timeframe. The plan aims to:
support the organisation in achieving its goals and objectives;
support or improve operational effectiveness;
Support or improve relationships to ensure organisational success;
Deliver tangible results to the organisation; and
Enhance JM’s reputation.
NB: Appendix 1 gives a typical example on issues of engagement.
5.2.2 Engagement methods
Meetings
Exhibitions
Visits (inbound & outbound)
Forums
Workshops/ Symposium
Road shows
Tours
6. Stakeholder communication
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Thorough effective and transparent communication programme with key stakeholders
is necessary to ensure all concerns are identified and addressed and that resources for
the project remain available.
Effective communication with stakeholders is important towards sustaining and
embedding any project initiation/implementation process. It is therefore important to
develop a communication and engagement strategy and plan to enable the JM to:
Better understand the needs and concerns of different stakeholders as they
may have different needs and concerns;
Develop a shared understanding of what it wants to achieve by communicating
and engaging with each stakeholder group;
Collaboratively develop a common set of key messages to communicate to
different stakeholders as well as a plan to use both traditional and new
communication techniques;
Provide a more coherent approach to engaging with different stakeholders.
Communication keeps stakeholders informed and hence involved in the projects and
programmes, and ensures that expectations are correctly managed. The emphasis on
communication must therefore be on interaction, dialogue and engagement with
different stakeholders.
Since effective communication is important for stakeholder relationship, JM’s
stakeholder communication framework will incorporate the following steps:
Setting communication objectives;
Setting key messages for the organisation;
Defining and prioritising key stakeholders;
Setting additional key messages which are relevant for each stakeholder group
and their particular issues/concerns;
Developing effective communication tactics for each target audience;
Allocating budget and responsibilities;
Developing a quarterly communications calendar; and
Assessing results and adapting the plan
6.1 Communication methods
Direct;
Interviews;
Print media;
Electronic media
Social media
6.2 Management of stakeholders
A good understanding of the current circumstances and which factors influence the stakeholders
is important to effective management of stakeholders. This then allows the approach to managing
stakeholders to be tailored to achieve maximum benefit. In particular, feedback channels are
crucial as this allows distinct management techniques to be utilised, depending on the feedback
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being received.
The challenges faced revolve around the fact that there is currently no formal feedback system
internally that allows information and knowledge to be shared across the organisation. This results
in a lack of awareness of changes regarding a stakeholder and inability to manage expectations
adequately.
In this situation business conditions tend to change too thus compelling JM to have a reactive
stakeholder management process. The following are considered to aid pro-active management:
A review of stakeholders to be undertaken bi-annually so as to determine the following:
o If interest or influence has changed;
o If new stakeholders have become known to the organisation;
o The current level of support each stakeholder receives from the organisation’s
activities; and;
o Any significant up-coming events from the stakeholder’s business areas that impact
the organisation.
The review allows for changes in levels or methods of stakeholder management to be
addressed;
o The sponsoring or respective division will pro-actively promote the JM’s activities,
especially within its own business areas;
o Stakeholders should be managed by the individual or groups best placed to address
the stakeholders;
o Benefits and outcomes of the projects will be re-iterated to remind stakeholders of
the end goals, particularly during challenging times; and
o Managers should identify supportive personnel from their business areas to assist
with increasing colleague commitment if necessary.
7. Record keeping
This refers to a mechanism for organising information in order to make it useful and
available to stakeholders and managers and to enable external assurance of the process
is possible. Templates / tools which provide useful means of recording inputs and outputs
at key stages in the stakeholder engagement process and a database to track individual
stakeholder contact details and concerns are requirements for effective stakeholder
management.
Currently the JM does not have a centralised recording system/database that allows for
accessibility of information by interested parties to ensure awareness of existing
communications with strategic stakeholders. Hence there is insufficient shared knowledge,
coordination, understanding of stakeholder engagements and value realised from the
relationships.
Since adequate record keeping and creating a database to document all interactions with
stakeholders is critical towards addressing the outlined challenges, the stakeholder function
therefore proposes that SAP’s Rapid Deployment Solution and its Customer Relationship
Management tool to be used for recording stakeholder engagement activities in JM.
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STAKEHOLDER REASONS FOR ENGAGEMENT WHY ENGAGE WITH JM FREQUENCY OF ENGAGEMENT METHODS OF ENGAGEMENT
SHAREHOLDER To provide current and future shareholders with relevant and timeous information, ensuring JM’s business is viewed in a positive light. To keep shareholders and the investment community informed at all times. To ensure image improvement, thereby minimising the potential for reputational risk. To enhance and deepen the trust placed in us and our brand.
To receive relevant timeous information on our prospects and financial and non-financial performance. To understand our financial performance. To gain insight into our strategy and management.
Formally, four times a year at the release of year-end, half- year, first- and third-quarter trading results. On an ad hoc basis as requested by the media, analysts and investors during non-closed periods.
Local and international roadshows; Ad hoc communications and answering investor and analyst questions. Annual general meeting and other investor meetings; Conferences and presentations; Media releases; AGM, reports and the corporate website. Detailed information on all published documents to ensure full disclosure of relevant information JM .regularly engages with its shareholder, the CoJ to ensure alignment of policies and methodologies, the effective capturing of synergies and leveraging of opportunities.
GOVERNMENT To build and strengthen relationships with government, both as a partner in the development of the Country. To provide input into legislative development processes that will affect the economy, activities and operations. To reaffirm commitment to public sector business development. To participate visibly in, and be a partner to, the transformation of SA and the fresh produce industry. To partner in increasing economic growth and reducing inequality and unemployment.
JM is a key role player in the economic, social and environmental transformation of the country.
Monthly or as deemed necessary by either party.
Political engagements take place where there is a business- related invitation.
BUSINESS PARTNERS AND INDUSTRY BODIES
To continue learning through interaction with the industry and cross-sectorial organisations. To leverage and build our strategic business partnerships for the maximum benefit of all our stakeholders. To use business associations as a forum through which we can promote our viewpoints on key industry issues
To deliver mutually beneficial learning. To influence and/or promote common agendas
As required or dictated by performance contracts and association or partnership membership agreements.
Quarterly meetings with our BBPs in terms of performance contracts. Monthly meetings with various industry bodies.
CUSTOMERS To understand them, their aspirations, businesses and financial service needs better. To provide appropriate advice, proactive financial solutions and value-adding services. To ensure that we maintain the high service levels they expect and deserve. To inform product development and prioritisation. To ensure accuracy of client personal and/or business information.
To receive good quality fresh produce and excellent customer service. To access world-class innovative facilities and services. To grow and promote customer outreach and product offering. Convenient access to trading facilities To enjoy protection of their assets through secure IT systems and infrastructure. To get value produce that is competitive and affordable in pricing.
Dependent on client needs and identified sales, service or guidance opportunities.
Interactions through customer services desk, relationship managers and complaint lines, client seminars, social media, surveys and marketing and advertising activities.
SUPPLIERS AND CONTRACTORS
To obtain products or services required for conducting our business. To maintain an ideal and timeous supply of goods and services for our operations. To encourage responsible practices across our supply chain BBBEE, local procurement, supplier conduct and environmental considerations. To include critical suppliers in cross-functional teams so as to contribute expertise and advice before specifications are developed for products or services.
To provide products and services. To negotiate pricing and contracts. To promote new products and service offerings. To respond to tenders. To seek input and guidance on their sustainability journeys.
Ongoing, as required. Ongoing interaction with suppliers and contractors for procurement purposes. Supplier education workshop, indabas, fairs (e.g. travel and stationery). Quarterly newsletter on sustainability matters. One-on-one negotiations and meetings.
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To encourage responsible practices across our supply chain BBBEE, local procurement, supplier conduct and environmental considerations.
REGULATORS To maintain open, honest and transparent relationships and ensure compliance with all legal and regulatory requirements. To retain our various operating licenses and minimise operational risk.
To ensure regulatory compliance. To promote the soundness and stability of the domestic banking and financial system, thereby contributing to its financial stability.
Daily, weekly, quarterly and as required.
These include various forums, from trilateral meetings with the board and management including one-on-one discussions with various executive officials at prudential meetings and onsite meetings.
STAFF To ensure that JM remain an employer of choice that provides a safe, positive and inspiring working environment. To understand and respond to the needs and concerns of staff members. To provide staff with strategic direction and keep them informed about group activities.
To provide us with feedback and input that can help us improve their working environment experience as well as the performance of our business.
Ongoing and daily engagement at all levels. As required by staff.
A robust combination of face-to-face, written and broadcast communications. These included culture and engagement surveys, roadshows, emails, intranet communications, data casting, magazines and relevant training
MEDIA To leverage the reach and influence of media channels to share our business and citizenship story with stakeholders. To communicate with relevant stakeholders and the broader public with a view of having a positive influence on behaviour that will lead to desired business results. To protect and manage reputation.
To educate and inform their audiences on developments in the fresh produce industry. To be informed about JM’s contribution towards the SA economy and its products and services. To empower the audiences to make informed financial and business decisions.
Daily, in response to business-related media queries. As required in response to our various business and sustainability initiatives.
Quarterly Group Exco breakfasts to which media are invited. Updates on processes, products and services Interviews with key business media on relevant reporting dates. Daily telephone and email interaction regarding media enquiries.
COMMUNITIES To better understand them, their aspirations, businesses and financial service needs. To provide appropriate advice, proactive financial solutions and value-adding services. To create partnerships that serve to facilitate our integrated sustainability activities. To obtain input from environmental experts, communities and non-governmental organisations (NGOs) regarding key focus areas. To create awareness of our integrated sustainability commitment and initiatives.
To access the financial products and services they need. To get advice and guidance on how to achieve desired outcomes for themselves, their families, their businesses and their communities. To secure funding and partner on common social and environmental issues. To collaborate in a way that furthers social, environmental and other common agendas for the greater good.
Ongoing – as partnerships dictate or stakeholder needs require.
These include various forums, from trilateral meetings with the board and management including one-on-one discussions with various executive officials at prudential meetings and onsite meetings.