Dear members and friends,

The SA Business Club has an exciting announcement to make, and you have agreed that this will be the next cornerstone in how we operate!

Late last year the SA Chamber of Commerce (SACC) approached the SA Business Club committee with the proposal to join forces and work together to making a real difference within the SA Business community. The committee were delighted at the prospect and after ironing out some technical details, we put the proposal to you to vote on at our AGM. You, the members, have agreed with us that a joint approach is the way forward so we are pleased to be able to announce that as of 1 July, the SA Business Club has upgraded as a legal entity and now falls under the banner of the SA Chamber of Commerce.

What this means for SA Business club members
No change whatsoever. In fact, only good things! Your membership will be migrated to be a member of the SACC under the existing terms and conditions, effective 1 July 2012. The SA Business Club will continue the award winning events, training and social occasions, no change there either.

What will change is that we will now have a louder voice with dignitaries, VIPs, business people and thought leaders so we will be putting on events with more compelling speakers!

What does the SA Chamber of Commerce do 
The SACC aims to be an umbrella organization and conduit for trade, community and investment into and out of South Africa. The aim is to bring under a common management agreement, all current organisations to benefit from: knowledge sharing around common practices, sharing of information and economies of scale in logistical management. This will also hopefully bring to an end proliferation of the formation of other such groups as all needs for all communities, in this collective unit, will be met. The SACC is a member-funded, apolitical organisation.

How the SA Chamber of Commerce works 
The SACC brings under one management structure activities offered by the SA Business Club, the Breakfast Indaba, Trade missions, SA Business Awards, Mamba Mentors, Board member events, white papers, research and open letters to government, training activities and various ad-hoc activities and events as set up by the Executive Committee and Secretariat.

Who runs the SA Chamber of Commerce 
The SACC is directed by a Board of Corporates. The Board members denote the agenda, what the topics for discussion for the year might be, interest areas that need pursuing and, where applicable, areas for lobbying government. The day-to-day activities of the SACC are executed by the Executive Committee who are elected at the AGM by the members of the SACC. The administration of the SACC is carried out by the secretariat. The Executive Committee take direction and leadership on content and strategy for delivery from the Board. The Executive Committee, as voted by yourselves comprises of: Mary-Anne Anderson (Chair), Reg Bamford, Jennifer Johnston, Carmel Suthons and James Durrant.

We look forward to bringing you a few more updates in the next little while but please join us in congratulating the SA Business Club committee and the SA Chamber of Commerce for some hard work behind the scenes in getting this initiative going!

Regards, 
Mary-Anne Anderson 
Chairperson: SA Business Club and SA Chamber of Commerce

With the economic environment more competitive than ever before, understanding how to build, strengthen and maintain relationships with potential customers, partners and colleagues is paramount to achieving greater success in your business and career. So how do you do that?

Paul Harrison sat down with business expert Kurt Won of SalesPartners UK to get his insights into business relationships.

Tip 1: Do what you say you’re going to do

Trust takes time to build up but trust can be lost in an instant. If you’ve promised to do something for someone, do it! It could be something as small as sending them an e-mail with information they need, or giving someone a call back. If you forget, call yourself on it, apologise and correct immediately.

Tip 2: Be the Real You

The current market trend seems to be heading towards more heart-based businesses, so don’t be afraid to share your true beliefs and opinions. By being authentic, you’ll find that people will warm to you quicker. Also, know what you want and be willing to be direct with each other about your business intentions.

Tip 3: Challenge their thoughts

Be confident enough to challenge their thinking by asking questions and listening intently. I was introduced to an accountant recently, and during the meeting I challenged her thoughts around her self-value because I thought what she was worth much more than she was charging. She appreciated it and we continued with a stimulating conversation. People like to be challenged and thought-provoking conversations can lead to more stimulating business relationships.

Q&A: Kurt Won answers Terry Loong’s questions.

Dr Terry Loong is a London-based South African who is building her anti-ageing and preventative health business and had the following questions about business relationships.

When it comes to finding a business partner: Be a friend first or be in business first?Great question. In my opinion, definitely business first. You have to assess if being in a business relationship with that person makes BUSINESS SENSE. Business relationships that start off friends first can create problems where one friend can’t hold the other accountable to their task because they fear they won’t be liked if they call the partner on something.

The saying goes that business is a team sport, how do you find your perfect business partner?I think it’s naïve to think there is a perfect partner. Find a business partner who has a similar ethos and mission to you. Also be very clear what you want in a business partner. Every business should have an entrepreneur (takes risk) and a business manager (avoids risk) to be successful.

What happens if the business relationship has soured? How do I salvage the relationship?
Be courageous to confront the issue. Confront doesn’t mean to be confrontational, it means being comfortable with asking what happened. Listen intently and ask a lot more questions to understand the situation. Acknowledge the other person’s feedback, and ask what would need to happen to avoid the situation again. Focus on the issue and not the person.

For more information you can visit www.SalesPartnersUK.com

If you have any other questions you would like answered, please email [email protected]

By Paul Harrison

www.thesouthafrican.com

Dr Wilmot James MP, DA Shadow Minister of Trade and Industry, delivered the following speech at the House of Commons in London on 28 June:

Good evening Ladies and Gentlemen,

It brings me great pleasure to be here today to engage in what I believe will be a fruitful discussion about the important role that trade plays in stimulating economic growth as well as the challenges and opportunities facing South Africa as the ‘gateway to Africa’ and as the latest member of the BRICS group of countries, which together are expected to account for 40% of global growth, according to IMF statistics.

I currently head up the headline economic policy initiative of the Democratic Alliance, which we have codenamed the 8% Growth Project. The project aims to unlock South Africa’s true growth potential and match the impressive economic performance we are seeing in other middle income countries such as Malaysia and Turkey by adopting bold policy reforms.

Putting South Africa on a high-growth path is critical if it is to adequately address the very serious social problems inherited from the apartheid era. No country has successfully addressed such issues on a sustained basis in the absence of strong economic growth.

A central component of the party’s growth plan has to do with consolidating and enhancing South Africa’s role as the preeminent trade and investment destination on the African continent by:

Making key investments in infrastructure and cutting red tape to enhance the country’s competitiveness;
Expanding our trade profile to better engage with emerging powers in the Global East and South, particularly in Africa; and
Deepening and strengthening our relationships with established trade partners such as the UK.
It is certainly an exciting time to be in Africa. According to a recent report by the management consultants McKinsey and Company, entitled Lions on the Move, the continent’s collective GDP is set to grow from $1.6 trillion (roughly the same as Brazil or Russia) to $2.6 trillion by 2020 (larger than the UK and slightly smaller than that of France).

Taken as a unit, Africa will be a force to be reckoned with in coming decades.

Both as a location to invest and as a market, the continent is alive with opportunities. The same report noted, for example, that Africa is currently home to 60% of the world’s uncultivated arable land, and will feature 1.1 billion people of working age in 2040. That works out to more working-age people than China has today.

By the end of this decade, Africa will have 128 million households with notable discretionary incomes to spend on consumer products. The amount they will spend on such products is estimated to grow from over $860 billion today to $1.4 trillion by 2020.

As the single largest economy on the continent, South Africa is well positioned to capitalise on these trends and provide a conduit for international investors eager to do business with Africa.

Our principal trading partner is the European Union, and the Democratic Alliance – as a national ‘government in waiting’ – is committed to strengthening and deepening this relationship even as we look to expand our horizons through networks such as the BRICS group and the IBSA (India-Brazil-South Africa) forum.

Taken together as a group, the EU countries (the most significant trading partners among them being Germany, France and the UK) account for 27.4% of South Africa’s exports, the total value of which was US $94.2 billion.

Annual bilateral trade between South Africa and the UK is estimated to be worth GBP9.6 billion, according to the British Trade and Investment Department. As a single entity, the EU is followed closely by China (13.4%), our second largest trading partner, and the United States (10%), which is third.

Naturally, given our country’s rich mineral resources, the bulk of South Africa’s exports to the EU comprises fuels and mineral products, followed by machinery and transport equipment, and other semi-manufactured goods.

On the other hand, the EU exported 25.6 billion euros worth of goods to South Africa in 2011, and 6.4 billion euros in services. Exports to South Africa were concentrated in high-value sectors such as machinery and transport, which accounted for 50% of goods received, as well as chemicals and partially-assembled machinery.

While these numbers may seem impressive, South Africa is in fact facing tough competition from our neighbours on the continent, many of which are showing signs of strong growth, albeit from a much lower base.

Both Lagos and Nairobi, for example, are becoming important financial centres in their own right.

Luanda and Kinshasa are also attracting considerable amounts of capital, particularly from investors interested in minerals extraction industries. Some new investors are choosing to locate their operations in these rapidly growing cities, rather than in the continent’s established hub: Johannesburg.

It should be noted though that none comes close to matching the scale, sophistication and infrastructure of the South African economy. Johannesburg is home to the 16th largest stock exchange in the world (the largest in Africa) and is the world’s largest ‘dry port’. The vast majority of corporations in the sub-continent are headquartered in South Africa.

Still, for the shipping industry in particular, the competition posed by the emerging African lions provides clues as to what South Africa needs to do to stay ahead of the game and ensure that our key harbours such as Cape Town, Port Elizabeth and Durban remain the first ‘port of call’ for businesses wishing to import and exports goods from the African continent.

Mauritius is an excellent example. According to the World Bank’s Doing Business report, the island nation is giving its big brother down south a run for its money on several indices measuring the ease of conducting cross-border trade.

By implementing bold reforms and making smart investments in infrastructure, Mauritius has climbed the Doing Business rankings to register 23rd in world for ease of doing business in 2012, a small dip from 21st last year, but still far ahead of other African countries. Notably it retained its 21st spot on ‘Trading Across Borders’, an area where South Africa lags behind.

These few indicators give an idea of where we need to improve:

In South Africa it takes on average 30 days and 8 separate documents to export a typical container load of goods at a cost of $1500 per container. In Mauritius, the same container could be exported in half the time, involve only 5 documents, and at a significantly reduced cost.
In South Africa it takes on average 35 days to import a container load of goods with 9 separate documents, whereas the same process in Mauritius would take 13 days and involve only six documents.
As a consequence of inefficiencies such as these, South Africa ranks very low – 144 out of 148 countries surveyed – for ‘Trading Across Borders’, despite the volume of trade, which dwarfs our neighbours, and the strength of the economy as a whole.

It is clear that bold reforms are needed in order to cut red tape, upgrade our port infrastructure and streamline our import and export processes if South Africa is to remain the ‘Gateway to Africa’ in the coming decades.

There are also aspects of South Africa’s tariff regime that remain uncompetitive, despite the country committing to rationalising its tariff lines as per the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The clothing and textiles industries remain highly protected relative to other sectors of the economy, while duties placed on certain specified products (such as automobiles) can be very high.

From the perspective of the Democratic Alliance there are two key channels open to us to influence national policy:

By providing a ‘best practice’ example where we govern in the Western Cape Province; and
By offering South Africa a better set of policy alternatives as a national ‘government in waiting’.
Although provincial governments do not control South Africa’s ports or customs authorities, there is much the Western Cape Government is doing to enhance trade relations along the south-western coast of Africa.

The DA’s provincial minister for Economic Development, for example, recently led a national trade delegation to Angola to discuss possible investment opportunities for South African firms there, and, together with the provincial transport and public works minister, has played an important role in promoting the ports of Cape Town and Saldanha Bay as key sites for the oil and gas industry.

At a national level, the DA has developed a comprehensive set of policy alternatives designed to enhance South Africa’s position as the continent’s preeminent trade and investment hub. These will be lobbied for in the country’s national Parliament, and will form an essential part of our economic policy manifesto for the 2014 national elections.

Examples of these policies include:

One-stop border posts to expedite the border crossing process;
simplified import and export procedures to significantly reduce the time and costs involved in trading across borders;
simplified customs procedures;
an increase in infrastructure spending to 10% of GDP, including major upgrades to rail and port facilities; and
upgrades to the country’s information and communications technology (ICT) infrastructure to lower the cost and enhance the competitiveness of doing business in South Africa.
I look forward to hearing your questions and comments regarding this important topic, and hope that this event will provide the starting point for a sustained engagement regarding the issues affecting trade with Africa, and South Africa in particular.

By DA Abroad

www.thesouthafrican.com

Closing the sale is one of the biggest stumbling blocks faced by sales people the world over.

Paul Harrison asked Marcus Cauchi, London’s first licensed trainer of Sandler Training, to reveal one of the most powerful selling secrets: How to have your prospect surrender the order by agreeing in the beginning what will happen at the end of the meeting. This is known as “Upfront Contracting”

Tip 1

“Closing a sale” results in resistance. Have the client close themselves instead.

How? Always agree at the start, what will happen by the end. Decide what a good outcome for your meeting will look like. Ask a question in the first 2-3 minutes like, “Mrs Client, I’m not a mind reader so let me ask you straight up, what do you need to see, hear or have happen by the time we are done in an hour, for us to do business ( or move forward to a second meeting)?”

Tip 2

No wishy-washy up front contracts …ever.

Up front contracts must be clear, specific and certain in their terms. “Paul, can we agree that assuming we tick all the boxes on your issues relating to not closing enough, not being in front of enough qualified decision makers consistently enough, and eliminating the pressure you and your salespeople feel to discount; assuming we get that far, is there any reason why you wouldn’t be comfortable setting aside 10 minutes at the end of our conversation to map out some clear next steps and define what has to happen for us to do business eventually?

Tip 3

Without the will to enforce an upfront contract it is almost useless.

Make sure you revisit your upfront contract as you go and reiterate what you have agreed at the end about next steps so you can put a plan into action as to what happens next. No exceptions. Every interaction begins and ends with an upfront contract.

And when you have to return to your earlier conversation, remind them of what you have mutually agreed and put the next steps into place with an agreed plan you are both part of making and putting into action.

Q & A

Roger Williamson is a London-based South African who is building a team within Forever Living Products and is keen to close more business using Upfront Contracting.

Question 1: Are there any downsides to Upfront Contracting?

Fair question. No. But there’s a big downside to not doing them. Look back at the last ten proposals you’ve written. How many closed? How many ended in a “think it over” or “call me in a couple of weeks” and you’re still chasing them?

Question 2: Isn’t it deemed very aggressive in the eyes of the prospective client?

The first rule of Sandler Sales Training is “Nurture, Nurture, Nurture” and U.F.C’ing is “the art of reaching mutual agreement”. That means your intent and everything you do is deliberately aimed at reaching a “Win-Win or No Deal”. I’m not sure how that would come across as anything other than reasonable, fair and consistent.

Question 3: Why don’t more people use upfront contracting?

Ignorance and fear. Most of us do what everyone else does and what we’ve always done. Habit tells us we should qualify for money, authority and need. Then present our case (which is normally features and benefits based) then go for the close, then handle objections and finally send a proposal. Then wait a chase and wait and chase. Just because we’ve always done it that way doesn’t mean it isn’t incredibly stupid!

For more information about Marcus and his training, you can visit www.london1.sandler.com and if you have any other questions that you would like answered, please email [email protected]

By Paul Harrison

www.thesouthafrican.com

Networking marketing has become the fastest-growing business sector in recent times. The problem a lot of us have is it conjures up images of men in cheap suits with slicked-back hair, trying to sell us stuff we don’t need.

It is being hailed as the business of the 21st century by juggernauts of industry like Warren Buffett and Robert Kiyosaki and can be the best way of starting a business with little financial and time investment, that one day will turn into a full-time residual income.

We spoke to Greg Davies, Emerald Executive from MonaVie, to get his best insights into starting a Network Marketing business.

Tip 1: Follow your heart
Most obviously, you need to have passion for the product you are recommending. Companies in our industry only have one major difference with those that sell their products in shops; and that is who they pay to advertise their products. Retail-based companies will pay celebrities millions of pounds in endorsements, whereas network marketing companies pass that money on to the distributors. If you believe in yourself and your product, you are off to a good start.

Tip 2: Adopt, don’t adapt
The most successful companies in the industry have a proven training system – lock into these. Unlike in other industries where your success would threaten your colleagues, everyone in your business has an interest in you succeeding. The training systems have been designed to develop your personal skills and to stop you wasting time and money.

Tip 3: It’s all about timing
This doesn’t mean you have to be in at the start, in fact following these kinds of companies before they are established often leads to years of frustration. You do need to give it the time to succeed, this is a 2-5 year plan and anyone who tells you that you will make lots of money very quickly does not understand the industry. The key is to work part-time and not sometimes, set a goal and make sure you stick to it.

Q&A

Mark van Hoven is a UK-based South African who is looking into Network Marketing as a source of additional income.

I hear horror stories of people investing thousands into Network Marketing, only to be left with products they do not want or cannot sell. How do I protect myself against this?

There are some very stringent rules that apply to our industry to stop this kind of thing happening. For example, it is illegal for you to spend more than £200 in your first seven days of business and there is always a cooling -off period where you can return product for a full refund. Having said this, if you follow the systems in place and set yourself an activity standard, you should never be left with mountains of stock and the person who introduced the business to you should never ask you to place an order if it is not appropriate for your business plan.

How do I know if Network Marketing is right for me?

Like all things in life, it is about research. Go to some events, meet some of the leaders and talk to someone who works for the company, rather than a distributor, about which team and leader you would work well with. It should never be down to a gut feeling and you will be able to get to a decision based on what you see, hear and experience.

What if I enroll and then after a while decide it is not right for me?

You should be able to step away from a network marketing company at any time if it isn’t right for you. Good companies will have a quick way to return your initial investment and then to continue to build your business to a level that generates a residual income. Because of the fact that they use you to recommend their products and services, it is of no advantage to them to have an unhappy distributor tied into a long contract.

For more information about Greg go to www.mymonavie.com/gregdavies and if you have other questions that you would like answered, please email – [email protected]

By Paul Harrison

www.thesouthafrican.com

The more than 350 guests at the fifth annual African Business Awards at Grosvenor House last Thursday included Africa’s leading business figures, ministers, diplomats and government officials. 

Organised by African Business magazine and the Commonwealth Business Council (CBC), the ceremony recognised those who have driven Africa’s rapidly transforming economy.

A distinguished panel of judges selected winners from a pool of nominees from all over Africa, with SA taking a fifth of the awards – three out of 14.

The Most Outstanding Woman of the Year was named as South Africa’s Rachel Zodwa Mabaso, founder and managing director of Mboweni Mineral Resources. She was unable to attend the ceremony so Regina Jere-Malanda, Editor of New African Woman, accepted the trophy on her behalf.

The Award for Innovation went to Entrepreneurial Finance Lab, which was founded in South Africa and has developed an international operation that identifies high-potential entrepreneurs and performs credit scoring.

South Africa’s Nedbank Group, represented by Mark Weston, won the Award for Environmental Sustainability in Africa.

Sir Alan Collins, Director General of the CBC commented, “By celebrating success, we aim to inspire others. We hope that such inspiration will lead to new business growth and new investment. It is encouraging that there are more and more examples of excellence in Africa, creating more opportunities that are ripe for investment.”

The CBC was established by the Commonwealth Heads of Government in 1997 to involve the private sector in the promotion of trade and investment. The CBC acts as a bridge for cooperation between business and government, concentrating on efforts to help remove barriers to trade, mobilise investment into Commonwealth countries, foster a good environment for business and investment, promote good practice in corporate governance and corporate citizenship, and facilitate the engagement of the private sector in information communication technology for development initiatives, especially in less developed countries.

The African Business Awards are held as an integral part of the Africa Business Forum. This annual event enables business and government leaders to jointly assess progress in promoting growth and development in Africa, and take steps to meet emerging challenges.

Egbert Imomoh, co-founder and Chairman of Afren, winner of Business Leader of the Year, emphasised that “Africa’s time has come to realise its full potential. Some of the most inspiring and transformational changes I see across Africa lie outside our traditional areas of strength and offer perhaps the brightest prospects for the future. Companies are now judged , not by how fast they are growing , but by whether they are growing faster than the competition.”

The Lifetime Achievement Award was presented to Manu Chandaria, who has been hailed as “one of Kenya’s leading industrialists”. Applauded by a standing ovation, he was given special credit for having built a world class conglomerate and set a benchmark for young entrepreneurs across the African continent to follow.

The rest of the winners:
• Investor of the Year: Dangote, Nigeria
• Special Commendation: Olam, Gabon
• Best Hospitality, Travel, and Tourism in Africa: Serena Hotels, Kenya
• Award for Good Corporate Governance: Diageo Africa
• Best Corporate Social Responsibility: BHP Billiton
• Business Leader of the Year: Egbert Imomoh, Non-Executive Chairman, Afren
• African Business of the Year: Innocent Chukwuma (Innoson)
• Award for Best Agricultural Development: OCP, Morocco
• Country Achievement for Sustained Improvement in Investment Climate: Rwanda
• Creative Industry Award: Duro Olowu
• Lifetime Achievement Award: Manu Chandaria, Kenya

www.thesouthafrican.com

A new publication focusing on business and opportunities in Africa is set to hit the streets next month. Named Gateway To Africa (GTA), the London-based title aims to provide vital tools for investors and decision-makers focused on the developing continent. At its core is the premise that South African businesses in the UK and on the continent form ideal partners to leverage opportunities in the rest of Africa.

The print element of the title, an A4 glossy magazine, will have a highly-targeted executive distribution in the UK and South Africa. At the heart of the title will be a website (www.gatewaytoafrica.com).

In addition a weekly e-newsletter and digital edition will be distributed to a select database of British, Sub-Saharan and South African decision-makers. The initiative forms part of the stable of Blue Sky Group, publishers of the UK-based newspaper The South African, SA Property Monthly, Australian Times and New Zealand Times. The publication sets out to be a conduit for trade and investment between UK and Sub-Saharan Africa. Readers will be provided with in-depth original business features, tools and news that unlock the opportunities between the UK and Sub-Saharan Africa.

Blue Sky Group’s new title, Gateway To Africa, will cover many key sectors – from banking to mining.
It aims to provide resources for UK and BRICS companies looking at doing business in developing Southern Africa, via South Africa. It also seeks to do the same for companies in Africa who wish to extend their influence in the UK, or transcontinental companies who can service the African supply chains.

Sectors covered will include: energy, banking, finance, retail, agriculture and mining. Interviews with a cross-section of key African entrepreneurs and leaders on the business stage will feature.Most importantly, the magazine sets out to become the place to speak directly to highly-skilled, experienced African recruits in the UK looking to bring their skills back home to African corporates.

The publication will be launched in July 2012.
The launch comes at a time when various business and government figures are increasingly highlighting the development and opportunities emerging in Africa. Last month South Africa’s Deputy President Kgalema Motlanthe said Africa is often referred to as the “new investment frontier.” Africa is believed to be the second fastest growing continent after Asia.

In addition, a recent Barclays report that surveyed 250 UK companies found that the vast majority (92%) believe there is opportunity for business in Africa today. Two thirds of the companies surveyed think this opportunity will grow in the next five years.

“Over the last 10 years of publishing TheSouthAfrican.com we have built up an invaluable network of individuals and partner organisations whose sole intent is the success of the continent,” said James Durrant, MD of Blue Sky.

“Africa’s time has finally come and we’re here to assist.”

by Irene Madongo

www.thesouthafrican.com