Page 13 - KZN Business Sense - KZN Chamber

BUSINESS CONFIDENCE IN THE ILEMBE DISTRICT
Enterprise iLembe in
partnership with the
iLembe Chamber of
Commerce, Industry & Tourism
collaborate to produce the
iLembe Business Confidence
Index (iBCI), aimed at providing
a biannual picture of business
confidence in the iLembe
District of KZN, as well as an
overall business outlook.
The index considers economic
and market-related aspects that
have a bearing on the business
mood, amongst businesses,
in the iLembe District. It is
likely that a region’s business
mood will be influenced both
positively and negatively
Property development is a significant economic contributor to
iLembe District. Ocean Club Zimbali is a new development situated within
the new Zimbali Lakes Resort.
Vote of confidence SMMEs KEY TO ECONOMY RECOVERY
Mia Moorcroft
Zululand Chamber of
Commerce and Industry
(ZCCI) members on
Thursday night unanimously
voted to renounce its constitution,
which stipulates to re-elect a new
president after two years, to hold
onto their current trailblazer.
Judith Nzimande, General
Manager of Human Resources at
the Richards Bay Coal Terminal,
was evidently dumbstruck when
the chamber’s auditor, Mark
Bateman-Evans, suddenly rose
before the closure of the ZCCI
annual general meeting, declaring
the importance to retain her as
president.
With not a single objection in
the jam-packed Pelican Hall,
Nzimande graciously agreed to
continue her role in the region.
In the past two years at the helm,
Nzimande managed to unite
Zululand’s corporate giants and
government leaders to ensure
the crucial doubling of the water
capacity of the Tugela Transfer
Scheme to Goedertrouw Dam.
The urgent drought intervention
led a high powered delegation
in April with the then KZN
by various developments in
markets and the economy as
a whole and the iBCI seeks to
reflect the net results of these
influences.
The iBCI is a hybrid index
derived from, firstly, a biannual
business survey conducted
in the iLembe district and
secondly, with a weighted index
of financial and economic
variables.
During 2015 the iBCI was
conducted on a quarterly basis,
but from 2016 onwards will be
conducted on a biannual basis.
The measurement of business
confidence is considered
Premier Senzo Mchunu and
the Department of Water and
Sanitation, resulting in a R700-
million commitment to fast-track
water infrastructure projects to
Zululand.
Her direct communication with
Telkom executives when a cut cable
caused chaos in Richards Bay’s
CBD in January, also ensured their
pledge to restore the 2400 lines out Enterprises (SMME) summit
of commission within four days.
ZCCI EXCO member Dave
Whittaker thanked Nzimande
for her influence as a respected
business leader and for bringing
together the region’s movers and
shakers for effective progress.
‘We have much closer ties with
our government thanks to you and
we hope to continue to grow even
closer with our local and district
municipalities.’
ZCCI manager Christa van
der Walt also stated Nzimande
has been critical in ‘taking the
chamber to a whole new level’ as
the voice of business.
Nzimande thanked the chamber
team for their support and hard
work.
‘It is only through unity that we
will strive.’ n
significant since it indicates
the current and expected state
of a region’s economy. It is
widely recognised that business
leaders’ subjective, individual
expectations play a key role in
economic developments.
Highlights And Key Findings
■■ The protests and resulting
disruptions to businesses
in the District during the first
half of 2016, combined with a
deteriorating national
economic sentiment,
impacted severely on the
overall business confidence in
the iLembe District, driving
the combined hybrid iBCI
(survey and activity indices)
for the first half of 2016 down
by 2.6 index points compared
to the fourth quarter of 2015.
■■ The 2016 mid-year iBCI was
recorded at 46.4 index points,
the lowest level of business
confidence recorded since
the commencement of the
iBCI, entrenching itself firmly
in negative territory.
■■ The survey component of
the iBCI, which was conducted
between the mid and end of
July 2016, and which records
subjective business sentiment,
was recorded at an all-time low
of 44.7 index points, five points
down from the Quarter four
Conelia Harry
Adecision to change her
career path was the biggest don’t rob or swindle people.”
game changer for business
mogul and author Patience
Mlengana.
Speaking at the Zululand
Chamber of Commerce’s (ZCCI)
Small, Medium and Micro
in Richards Bay last week, she
encouraged entrepreneurs to
discover their purpose, which is
the key to establishing successful
businesses and earn profit.
Sharing her journey to success,
Mlengana said she spent seven
years studying and achieved her
Master’s degree in Communication
Science. She found her first job
working in the archives at SABC,
found it boring and ventured
into the marketing field, which
appeared to be more interesting
and offered her a challenge.
After moving up the ranks in
several different jobs she took a
leap of faith and started her own
businesses and ministry.
“One has to love what you do,
so when you start up a business it
should be something you enjoy so
you will see it through.”
2015 level. prices and employment were all
■■ Negative outlooks around sales in positive territory.
volumes (45.6; <10.5) and order ■■ An increase in input prices
books (42.7; <10) were the biggest continued to significantly
contributors to the dejected impact on the overall business
local business sentiment. expectations for the next six
Sentiment around levels of months in the iLembe District.
employment was the only Business Expectations
economic activity recorded
positively, at 51.1 index points. It is however encouraging
■■ The business confidence in the to observe that business
Manufacturing & Assembly expectations for the remainder
(39.8), Wholesale, Retail of 2016 are positive at a level of
& Vehicle Trade (39.7) and 51.3 a gain of 1.4 points against
Agriculture, Forestry & the last quarter of 2015. This
Hunting (40.7) sectors six-month business expectation is
contributed to the overall the highest level since the high of
gloomy sentiment. 57.9 index points recorded in the
■■ The most confident economic second quarter of 2015.
sector was Tourism, Catering
& Accommodation with Considering the current
businesses in this sector positive economic data and other
reflecting a business confidence related activities, especially a
strengthening rand and revised
level of 64.7 index points, growth projections, should
balancing the overwhelming contribute significantly to the
negativity expressed by the actual performance of businesses
other economic sectors. in the iLembe District during the
second half of 2016. n
■■ In line with the aforementioned
sector sentiment, the Enquiries:
confidence expressed by Cheryl Peters, Acting CEO, Enterprise
businesses in the Mandeni iLembe, cheryl@enterpriseilembe.co.za
Local Municipality, home to Cobus Oelofse, CEO, iLembe Chamber of
the Isithebe Industrial Estate, Commerce, ceo@ilembechamber.co.za
which was significantly Richard Downing, Economist, Econdow,
impacted by the protests, was econdow@axxess.co.za
firmly in the negative on 40.8.
■■ The six-month outlook around
sales volumes, order book, sales
“‘In business you have to dream as many large corporates and
big, offer excellent service, be companies were now downsizing.
honest, avoid cutting corners and
“Since the last ZCCI annual
SMME Seminar, 15 companies
“You have to enlarge your vision have created 120 new jobs despite
and move out of your comfort the tough economic conditions.
zone.”
“Almost 200 entrepreneurs
Growth attended the event and while
Impressed with the number of the chamber celebrates its 90th
attendees at the event, ZCCI anniversary, we are confident that
Deputy President Thabani Shale this organisation is vital and still
said small businesses were the relevant to businesses.” n
engines of economic growth
and employment in the region This article first appeared in the Zululand
Observer
ZCCI President, Judith Nzimande with South African Chamber of Comerce
and Industry CEO Allan Mukoki at the recent ZCCI AGM.
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