Page 15 - JCCI Business Focus 2.3
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CustoMer-CentrICItY Is slG’s CoMPetItIve


        dIfferentIAtor



                THOKO MBATHA          companies in KwaZulu-Natal    customers in their respective   and the abundance of coal, which
                is the Group Chief    (KZN), the Free State and     sectors. It is imperative that we   is cheaper than gas. However, coal
        MExecutive Officer of         Gauteng via its pipeline network   understand what matters to them   will soon be subject to carbon
        SLG (Pty) Ltd, the second largest   as well as on a portable basis   so that we create value for them,”   tax legislation, which will levy
        natural gas trading business   using Compressed Natural Gas   says Mbatha.                R120 per ton of CO2 equivalent
        in South Africa. He has served   (CNG) technology. For example,   Mbatha attributes SLG’s success   on emission. This makes the
        the company as an executive in   it supplies CNG to a JSE listed   to its customer-centric approach   conversion from combustion
        various capacities for 14 years and   company which is situated a   to business and describes it   equipment to natural gas
        has used his vast experience in   distance away from the pipeline   as committed to providing   economically feasible and could
        the ever-changing gas industry   network.                   innovative, reliable and accessible   trigger the growth needed to
        to spearhead its phenomenal                                 services to them. He adds that   achieve the 2030 target.
        growth. Mbatha has a solid     The majority of SLG’s customers   the company also continues to   SLG spends consistently on
        business acumen and employs   in KZN are manufacturing      strive to ensure that sufficient   corporate social investment
        a collaborative leadership style,   companies that understand the   natural gas become is available   programmes, primarily by
        which he uses to build robust   benefits of transitioning from   to meet additional gas demand.   supporting the advancement
        relations with regulatory bodies   high carbon fuels to lower carbon   “As a significant trader in the   of science and maths skills at
        such as the National Energy   natural gas. They know that gas   market playing at the tail-end   historically underprivileged   Mthoko Mbatha
        Regulator of South Africa     produces only 50% of the carbon   of the gas supply value chain,   community schools, donating
        (NERSA), the Department of    footprint of energy sources such   SLG will continue to unearth   resources such as science   Development (ECD) teachers,
        Energy (DoE), SLG’s suppliers   as coal. They also benefit from   and aggregate new markets for   and computer hardware and   community speech impediment
        and most importantly, its     the fact that natural gas is cost   upstream investment. This will   sponsoring laboratories for STEM   projects, and the East Coast Radio
        customers. He is excited about   efficient. Natural gas/Methane   certainly ensure that the 3%   (Science, Technology, Engineering   toy story by supporting their
        growing the business further,   Rich Gas is 35% cheaper than   market share of natural gas in the   and Maths) programmes. SLG   annual AmaLunchbox drives at
        contributing to the development   Liquefied Petroleum Gas (LPG),   country’s primary energy mix   also improves its surrounding   schools. 
        of the local natural gas industry   approximately 165% cheaper than   increases to at least 7% by 2030   communities by funding various
        and helping to shape its future.  diesel on an energy per unit basis.   in line with the ambitions of the   projects such as uplifting hearing   T: 031 812 0555
         The company he directs, SLG,   Collectively, these companies   DoE,” says Mbatha.        impaired Early Childhood      Smart Access Number: 0800 075 427
                                                                                                                                www.slgas.co.za
        is an award winning 100% black   employ thousands of people and   The current 3% figure, which is
        owned and managed company,    contribute approximately 17.1%   low compared to the global norm
        which commenced operations    to the province’s Gross Domestic   of 25% is primarily due to lack of
        in July 2002. It supplies natural   Product (GDP). “SLG’s future is   supply, inadequate infrastructure,
        gas to industrial and commercial   contingent on the success of our



        south AfrICA hAs A lot thAt Is rIGht



             ife in South Africa: Reasons   particularly in the era to 2007,   …but the numbers (in the   needs to be done to resume the   ‘Too often, these entrepreneurs
             for Hope, the latest report   provided the government with   report) are so great that they   path of progress, especially evident  and the middle classes are
        Lfrom the Institute of Race   the revenues to bring about vast   speak to a profoundly important  between 1994 and 2007.’   hounded as an uncaring and
        Relations (IRR), seeks to remind   improvements in living standards   raising of the living-standards                  selfish elite who have done
        South Africans of the significant   via its service delivery efforts.   floor in our country.’   The report states: ‘Our sense is   nothing to bring about a better
        progress the country has made   As much as it courts                                      that far more has been achieved   future. They have done a great deal
                                                                                                  in South Africa over the past
        under democracy, and the scope   controversy, we stand on the   Among the positives highlighted   two decades than many people   and deserve great credit.’
        for resuming an upward trajectory   point that service delivery was   in the report are that:   understand. There is a lot to be   However, the report cautions that
        towards growth and optimism.                                ■   Inflation dropped from 9% in
                                      one of the key successes of the     1994 to 5,3% in 2017    proud of and in no way is it true   ‘there must be no doubt that the
         The report highlights progress in   African National Congress   ■   Ten formal houses were built for    to say that “South Africa is no   radical inflection of government
        areas ranging from the economy   in government. This is not to                            better than it was in 1994”, or   policy after 2007 did great harm
        to living conditions, health,   overlook the many and varied     every shack newly erected   that “South Africans have refused  to the South African economy and
        education and crime.          failures both in the extent   ■   The number of black people    to work together to bring about   stalled much of the progress that
                                      and in the quality of services     with a job increased from    change”. This is a substantively   was being made to that point’.
         It notes: ‘The effects of higher   delivered. Nor is it to suggest     4.9 million in 1994 to over    better society to live in than it
        levels of investment-driven                                   12 million last year                                      The IRR is particularly worried
        growth, and sensible policy,   that State-driven delivery is a   ■   The middle class has doubled    was in 1994. We think that, as   that the policy of expropriation
                                      sustainable path out of poverty                             a result of that progress, social
                                                                      in size                     and other relations remain   without compensation or EWC
                                                                    ■   The number of students    predominantly sound.’        could do such damage as to erode
                                                                      enrolled at universities has                             much of the progress made over the
                                                                      increased almost threefold since    A key element of the report is its   past two decades and completely
                                                                      1985                        acknowledgement of the role of   change South Africa’s living
                                                                    ■   The murder rate has been halved   South Africans across the board   standards trajectory for the worse.
                                                                      through the democratic era   in contributing to the country’s
                                                                                                  progress.                     The report concludes,
                                                                     IRR media and public affairs                              however: ‘If policy makers can
                                                                    officer Kelebogile Leepile notes:   Noting that the IRR has   adopt sensible ideas that draw
                                                                    “The importance of this report   ‘given the government and   investment, create new wealth and
                                                                    is that it reminds us of the good   the ruling party much credit’   jobs, and grow the economy, then
                                                                    story to tell, which is often lost in   for progress made, the report   there is no reason to believe that
                                                                    the doom-and-gloom narrative   adds: ‘But more credit must   the trajectory our country was on
                                                                    about the problems we still   go to the entrepreneurs,     into 2007 cannot be resumed.’
                                                                    face. We hope to restore some   investors, employers, and   *The Hope Reports are series
                                                                    balance to the debate about life   employees, whose hard work   of reports produced by the IRR
                                                                    in South Africa, and to dispel the   and risk-taking generated the   to highlight the extent to which
                                                                    impression that democracy has   tax revenue that funded the   South Africans have built a better
                                                                    failed to deliver a better life. This   free and subsidised houses and   country and better lives since the
                                                                    is also a way of focusing on what   services, and social welfare.   end of apartheid. 




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