Employment equity and transformation - what is corporate South Africa doing wrong?

Employment equity has been high on the agenda since 1998, yet it seems very little progress has been made. The 16thCommission for Employee Equity (CEE) Report, recently released by the Department of Labour, shows that the white population still holds 68,9% of top management positions in South Africa, more than 6 times their economically active population (EAP). While the government has shown the most progress, with black Africans occupying 73,2% of public sector positions, the private sector still has a lot of work to do in order to realise the country’s employment equity goals. So, why are we as a country not progressing? What exactly are we doing wrong?

State fund eyes Chevron’s SA business

According to IOL The state-owned Strategic Fuel Fund (SFF), the guardian of South Africa’s strategic crude oil stocks, had made an offer to purchase oil major Chevron Corporation’s South African business, the SFF said in a statement yesterday.


Lack of awareness around legislation putting businesses in SA at risk of data breaches

More than three-fifths ofsmall and medium enterprises (SMEs) surveyed and a third of larger organisations in South Africa surveyed believe the Protection of Personal Information Act (POPI) does not apply to their business raising concerns that there is a gap in basic information security knowledge across the country, a leading information security company said today as it launched the first South Africa State of the Industry - Information Security report.


South Africa to cut time to register new businesses, Rob Davies

  • Issues impacting retailers, manufacturers under the spotlight at The Consumer Goods Forum Global Summit in Cape Town, 15 to 17 June.

South African trade and industry minister Rob Davies told a room of international CEOs and executives from the FMCG sector that government was working hard to cut the red tape inhibiting foreign business from entering the country. He said that the process of setting up a business in South Africa would, soon, be done within a more specific – and faster – time frame and that business visas would be granted more flexibly and easily going forward.


South African train manufacturing steams ahead

The R51bn contract to create 600 new passenger trains for the Passenger Rail Agency of South Africa (PRASA) has grasped 32 local suppliers.

To date there have been six trains completed and sent off to South Africa, which was part of an order of 20 from Brazil. The 580 trains outstanding will now be manufactured in South Africa.

Gibela, a joint venture between Alstom, Ubumbano Rail and New Africa Rail, is responsible for supplying the trains to PRASA.

“Our company has no contractual obligations to add local content to the Brazilian-built trains. However, Gibela took a strategic decision to get a head start, in an effort to ensure that local suppliers are well prepared – in terms of technical capability, capacity and investment – for what will be an intensive manufacturing programme once local production starts in 2017,” says Marc Granger, Gibela

By the end of 2019 there will be a rate of two train cars a day or 62 cars a year in local manufacturing. This will be at the Dunnottar plant which is under construction in Ekurhuleni.

“To do this, 10,000 parts will have to come on site every day, from 250 suppliers. This is a very, very significant challenge. Only the best factories in the world can deliver this,” stresses Granger.

For each train that is currently built in Brazil, 22% of procurement spend is on components obtained from South African suppliers.

About 65% to 70% of the mechanisms will be produced locally at peak production, by value.

“Train 21 will have “significantly” higher local content than the Brazilian produced trains,” says Granger.

“Therefore Gibela is on a major mission to find more local suppliers,” adds Granger.

Granger says that they are not only looking for large tier one suppliers, but also tier two, three, four and five.

Granger’s goal is to have all Gibela components come from South Africa, mainly chemicals and paints.

“At full production, Gibela anticipates that around 200 local suppliers will be delivering parts to Dunnottar,” says Granger.

This leaves the consortium with two years to find a noteworthy amount of local suppliers.

“The project to create a supplier park next to the Dunnottar plant is succeeding,” states Granger.

It has been agreed by the Gibela shareholders that Ubumbano Rail will be the main developer of the park.

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