Current Edition >> Archive Section >> Special Features >> 15-31 July 2005
With financing provided by the Free State Provincial Government, the Phakisa Freeway was constructed between Welkom and Odendaalsrus primarily to host World Motorcycle Grand Prix events and in so doing to boost tourism and other economic spin-offs for the Goldfields region. Being managed by the Phakisa Major Sport Events and Development Corporation, the Phakisa Freeway between 1999 and 2004 hosted a total of six World Motorcycle Grand Prix events.
However, when the latter contract was not renewed for 2005, skepticism was generally voiced about the future viability of the Phakisa complex. Nevertheless, the current Phakisa management team under Board chairperson Beef Molefe and Track Manager Estie du Toit is at present steering Phakisa towards a much-utilized facility.
For instance, the Vodacom Power Tour Championship - the country's exciting national event - was hosted at this circuit in April this year bringing huge crowds and exciting racing. The circuit is hoping to host another round of the championship coming October. Apart from racing, the circuit is also popular for events such as cycling, cross-country, conferencing, social functions, advance driver training, Moto-X and indoor activities like expo's and sports like archery. Phakisa is also one of few circuits to still host a two-hours endurance event, most probably the only and longest standing event of its kind in the country.
A spokesperson for Phakisa told the Free State Business Bulletin that in terms of equity the circuit is entirely managed by women and black men. The circuit made history when Florence Mafa became the first ever black secretary of a race meeting. Molema Mochudi handles all track bookings, while Bennet Ngalo manages the Freeway's security and assets. Sue Douglas is the financial manager and Estie du Toit the Track manager.
According to the Phakisa spokesperson, the Phakisa Freeway with facilities is these days a hive of activity and although full financial sustainability is still to be achieved, the project is in a process of mapping for itself a new way ahead. If it could be integrated even more into the fabric of local as well as national events and programs, Phakisa could prove to be a winner for the Free State Goldfields.
Harrismith in the south-eastern Free State is by virtue of its strategic location one of the key economic and business centres in the province. Situated on the N3 route between Gauteng and Durban, it is a natural halfway house, offering today numerous motels, guest- houses and take-away outlets.
It is also well- connected by road to Qwa-Qwa and Bethlehem. As a holiday resort, Harrismith is renowned for its mountain resorts and spectacular scenery.
Towering over Harrismith is one of the most famous landmarks in the Eastern Free State, the 9km long, 230m high Platberg.
Against this backdrop, the Free State Business Bulletin offers this focus from a business and development perspective on present-day Harrismith.
Ryk geskiedenis
Die Voortrekkers op hul togte na Natal in die eerste deel van die 19de eeu is heen en weer oor die plek waar die latere Harrismith tot stand sou kom.
Die dorp is in 1849 deur Paul Bester, in opdrag van Sir Harry Smith, Britse goewerneur, op die plaas Gemsbokhoek aan die voet van Platberg gestig. Die dorp het deur opeenvolgende era's n ryk geskiedenis opgebou.
In die staatkundige bedeling teen die einde van die 20ste eeu is Harrismith verklaar tot grensnywerheidsgebied t.o.v. die naasliggende Qwa-Qwa met sy bykans halfmiljoen inwoners en het dit bepaalde ekonomiese groeistimulus verleen.
Harrismith beskik ook oor een van die sterkste landboudistrikte in Suid-Afrika in terme van wol-, vleis- en graanproduksie. Vanaf ongeveer 2000 het die groeistimulus van die vorige bedeling weggeval en moes die besigheidsektor op die dorp noodwendig 'n heroriëntasie doen t.o.v. strategie en doelwitte. Huidiglik het die Vrystaat Sake Bulletin gevind dat die plaaslike besigheidsektor besig is om uit 'n afplattingstydperk te beweeg na 'n opwaartse groeikurwe.
Hoewel werkloosheid van sowat 40% 'n groot probleem is, is daar steeds enkele groot gevestigde maatskappye, soos Boxmore Plastics, Nestlè, Nouwens Carpets, ens., wat landwyd sake doen, terwyl opmerklik nuwe besighede oopgemaak het of in 'n proses is om op te spring.
Die landbousektor is steeds sterk, terwyl die gasvryheidsbedryf vanweë die strategiese ligging van Harrismith eenvoudig van krag tot krag gaan.
Conductive to investment
Seen on the whole, the Harrismith region comes through as an attractive investment destination. Forming part of the greater Maluti-a-Phofung municipal area, it borders on an assortment of equally attractive neighbours including the KwaZulu Natal battlefields, the Drakensberg area, the wetlands of Memel and the Clarens 'phenomenon'. A newly announced transfrontier park including Golden Gate, Qwa Qwa National Park, Lesotho, the Drakensberg, as well as the Ukhahlamba Heritage Site, makes Harrismith the gateway to a wider vibrant investment destination.
Easy to reach from major centres and airports, Harrismith is retaining its small town intimacy and natural friendliness.
Despite chronic unemployment, an optimistic vibe could be picked up. The region offers a great quality of life with lovely residential areas and good shopping, medical, religious, educational and recreational facilities in Intabazwe township. The saying of the one hand washing the other, is quite a reality. It is said that the local communities recognize their significant interdependence and work well together on the basis of mutual respect.
Opportunities for small businesses
It is estimated by large businesses such as banks, supermarkets and clothing stores, that about 10% of their turnover is being accounted for by tourists. With the current boom in tourism, this figure is certainly growing significantly. Huge potential exists at Harrismith and surroundings for small businesses either directly in catering to tourism demands by manufacturing of curios, arts and crafts or indirectly by supplying to frontline tourism entrepreneurs.
It is further estimated that the average holiday maker spends roughly 20% of his/her holiday budget on curios, craft items or art objects - thus a huge potential market. In SA great success has already been achieved in the export of ethnic craft to the seemingly insatiable overseas market. Many traditional items can often quite easily be adapted to suit current fashion tastes in e.g. colour, pattern or materials.
The Maluti-a-Phofung municipality has identified small business as a potential growth area and offer support on many levels to the investor or new entrant to the market.
Further opportunities exist in the possible development of sophisticated shopping facilities in the townships. It has been seen elsewhere in the world that, in addition to creating jobs, such actions contributed to the convenience of residents and contributed to a feeling of self worth in the fabric of society. A significant market exists in Phuthaditjhaba, being the administrative centre of Maluti-a-Phofung and having a workforce of about 700 employed by the council, plus further large numbers employed by other provincial government departments, to supply goods and services to this emerging market.
Education and training is another area which has been identified as a potential growth opportunity. Especially in the fields of science, technology and information technology, a backlog exists. One of the outcomes was that the possible creation of a science and technology park has been discussed at the municipal IDP hearings.
Afgri Harrismith doen verbruikersnavorsing
Die algemene bestuurder van Afgri op Harrismith, mnr. Deon Strydom, het aan die Vrystaat Sake Bulletin gesê dat die maatskappy op die dorp tans marknavorsing doen onder die algemene verbruikerspubliek ten einde hul spesifieke behoeftes te bepaal. Gevolglik word insette van die publiek gevra oor hoe hulle produkte in die winkel aangebied wil hê, watter tipe produkte verkies word en wat verwagtings is ten opsigte van dienslewering.
Mense is welkom om met Strydom persoonlik te gesels of met enige van die ander kontakpersone in spesifieke afdelings van die winkel : Veevoere - JJ Smith; handgereedskap - Elize Pretorius; tuinboubenodigdhede - Deon Strydom; verf en elektriese toebehore - Moses Sekosane; buitelewe-items - Cora Loggenberg; bande, batterye, gas, ens. - Marinus Myburg; onderdele; trekkers, grondwerkmasjinerie en grassnyers - Rudi Kemp en Marius Froneman; werkswinkel - Corné of Francois; en algemene navrae - Antoinette Naudé.
Hul telefoonnommer is (058) 622 1021.
Agro-processing
Given the exceptional productive agricultural district of Harrismith, a critical issue to be pursued and utilized, is the field of agro-processing. The adding of value to the numerous agricultural products being produced in the area is an opportunity which remains largely unexplored. This region is a major producer of wool, beef, mutton, pork, poultry, dairy, wheat, maize, potatoes, fruit and flowers which is generally delivered to the markets unimproved. Various opportunities thus exist for the processing of such products before they are “exported” out of the region.
To give meaning to local economic development, to create jobs and to raise standard of living among the poor sections of the community, imaginative agro-processing is certainly one of the possibilities that could make a significant impact.
Weakpoints
To be realistic, weakpoints in the Harrismith area need to be identified and addressed if effective socio-economic developmental goals are to be achieved. In this respect, several core issues have been identified by the Maluti-a-Phofung Local Municipality as being critical to the improvement of the lives of the inhabitants. The top five priority issues have been ranked in order of importance and are as follows:
• High levels of unemployment, low levels of income, lack of food security as well as a lack of a diverse economy, economic growth and investment.
• Low levels of education and skills training and limited access to education and training facilities and the overcrowding of schools.Low levels of basic infrastructure and lack of maintenance of infrastructure.
• The lack of information, business support and limited access to libraries.
• High HIV/Aids prevalence and a lack of care and support for these victims and their families as well as inaccessibility of health services to remote villages and rural areas.
These issues are currently being addressed through strategies contained in the Integrated Development Plan 2002-2007 of the Maluti-a-Phofung Local Municipality. The IDP has been approved and adopted and is now entering the implementation phase. It involves inter alia a huge amount of data collection, research, analysis and restructuring as it pertains to the integrated development of the various towns within the Maluti-a-Phofung geographical area.
Harrismith "besigheidsgewys gedraai"
Volgens die voorsitter van die Harrismith Sakekamer, mnr. Marinus van Sandwyk, het Harrismith die jongste tyd "besigheidsgewys beslis positief gedraai" en is sake besig om op te tel. Huispryse styg konstant en daar is feitlik geen leë besigheidspersele in die dorp of in die aanliggende nywerheidsgebiede beskikbaar nie.
Van Sandwyk sê druk deurverkeer word ondervind op die N3 tussen Gauteng en KZN, asook op die N5 vanaf Kestell- Bethlehem- Bloemfontein. Laasgenoemde pad word tans deur die SA Nasionale Padagentskap verbeter en dit baat besigheid selfs te Harrismith. Ook woon baie werknemers van die padbouprojekte op Harrismith en dit verbeter koopkrag.
'n Ander belangrike punt wat deur Van Sandwyk geopper word, is dat die Vrystaat Ontwikkelingskorporasie (VSOK) tans die moontlikheid ondersoek van die vestiging van 'n binnelandse hawe of sg. “dry port” te Harrismith, waar plaaslik alle doeane- en ander klarings vir in- en uitvoerdoeleindes gedoen kan word. Volgens Van Sandwyk is dit waarskynlik die enkele belangrikste faktor wat aan die plaaslike ekonomie 'n hupstoot kan gee, veral die vervaardigingsektor.
Volgens Van Sandwyk is toerisme in die omgewing in 'n bloeityd en doen gastehuise en gasteplase besonder goed. Ook openbare nuwe oorgrenspark wat Lesotho en KZN insluit, bied talle nuwe geleenthede.
Die Harrismith Sakekamer is verlede jaar gereorganiseer en het tans 110 lede.
Vir meer inligting kan Van Sandwyk geskakel word by 082 372 9366.
Braamhoek Project to boost development
Construction of the Braamhoek Project by Eskom, which is due to start in 2007 on the plateau edge between Harrismith and Ladysmith, is destined to bring an enormous boost for tourism, job creation and socio-economic development in the region. Designed to be South Africa's largest hydro-electrical pump storage scheme (PSS) at a construction cost of R4,2 billion, the Braamhoek Project will assist in meeting the country's growing electricity demands from 2012.
The project consists of a top catch-dam in the Wilge River (flowing into the Vaal River) at Bedford (in the Free State) and a bottom catch-dam in the Klip River at Beeshoek (in KwaZulu Natal) with a hydro-electrical power station in the middle. Two environmental officials have already been appointed to monitor environmental issues at Braamhoek before, during and after the construction phase.
The Thabo Mofutsanyana District Municipality submitted a proposal to the national Departments of Transport, Minerals and Energy and Environmental Affairs and Tourism, about the construction of access roads with a view to fully develop the excellent potential of the adjacent wetlands. The Harrismith Chamber of Business, farm unions, Friends of the Harrismith Botanical Gardens, the Skeurklip Conservation Area, Bergbohaai Union and the communities of Swinburne, Harrismith and Van Reenen, all support the proposal.
Verge of take-off
The practical indications about Harrismith is clearly that the area is indeed well-placed to become shortly one of the best economic growth points in the Free State.
If the area, especially the business sector and the Maluti-a-Phofung Municipality, can get their act together, Harrismith could be on the verge of economic take-off.
With the introduction of the new Graduated Tax on Small Businesses, as from March 2006, probably for the first time small business owners will be able to pay less tax than their corporate peers - a sorely earned reward for their more risky and difficult lives. To the right is a guideline about the implications of the new tax break.
The new Graduated Tax says that Small Business Companies won't pay any tax on their first R35 000 profit per year and only 10% on their profit of between R35 000 and R250 000. This is as opposed to 29% normal companies tax. Despite the further Secondary Tax on Companies of 12,5% which a business owner will pay on the dividends he or she takes home, Graduated Tax holds significant savings for entrepreneurs.
The savings can be optimised if a business owner takes a portion of his income home as salary, with a portion as dividends. The exact proportions depends on how much he or she wants to take home and is also indicated in the table to the left.
However, Prof. Kobus van Schalkwyk from the Department of Accounting at the University of Stellenbosch warns: “Care must be taken that salaries remain market related. If not, SARS may endeavor to invoke Section 103 of the Income tax Act, which applies in cases of tax evasion.”
Graduated Tax on Small Businesses apply to those:
• That are registered as a CC or a Pty (Ltd) company.
• That have a turnover of less than R6 million a year.
• That employ at least four workers not directly related to the owner.
• With less than 80% of its turnover is derived from its biggest client.
• Of which the owner owns no other business.
The table to the left gives some indication as to the best ratio between salary and dividends that a business owner could consider.
The 80/20 Principle explains just how business people can create both wealth and well-being. Once the idea is grasped it is astonishingly simple to put it into practice, with startling results.
Management consultant Richard Koch is both a successful entrepreneur and a best-selling author. He advises venture capital groups in South Africa and the UK and has homes both in London and Cape Town.
Writes Koch : “Most sales will come from only 20% of the product line, 20% of a carpet gets the majority of its wear and tear. And, applied to personal life, 80% of happiness comes from 20% of your time.”
In the world in which we live, Richard Koch argues, merely “keeping up” will no longer be enough, mere competence at something can no longer be rewarded with success. You must do something that comes easily to you and that you love, so you will have a tremendous advantage over others and can rise to the top in your field.
Only this type of effort, which may not really seem like “work”, will bring big rewards. In the 80/20 world, unlike the old one, those who apply its logic can expect rewards that are greater compared with effort. But that input must be of a uniquely high standard and reflect the uniqueness of the “giver.”
The 80/20 principle, like the truth, can make you free. You can work less. At the same time you can earn and enjoy more. According to the 80/20 principle, a soccer star like David Beckham or a motor-racing ace like Michael Schumacher earn vast sums because they are so much better than anyone else at what they do and that includes personal charisma, of course.
Conventional wisdom is not to put all your eggs into one basket; 80/20 wisdom is to choose a basket carefully, load all your eggs into it and then watch it like a hawk.
Most of what we consider valuable, comes from only a fraction of how we spend our time, says Koch. Our society's appreciation of time is poor “We don't need time management, we need a time revolution.”
Conventional time management is about increasing the efficiency of what we do and becoming better at prioritisation. But Koch believes that the failing of all types of time management is the assumption that we actually know what is and what isn't good use of time in the first place. Its second fault is the conventional assumption that time is short, that we have many important things to do and are constantly under pressure.
To get phenomenally better in the use of our time, the 80/20 principle requires us to go back to our “priorities” and see if they really reflect the best use of our life in general. Koch maintains that most people try too hard at the wrong things.
The unexpected and apparently irrational reality is that there is an abundance of time once we start spending it on the 20 per cent that matters.
Koch instances the German General Von Manstein, who concluded that the best officers, who made the least number of mistakes and were the most far-sighted, were both intelligent and lazy. Thus, says Koch, the key to becoming a star is to deploy “lazy intelligence.” Instead of choosing the difficult goal that we think will bring us respect, we should focus on what comes easily. Amazingly, capitalism allows a person to be successful and rich just by being themselves. They automatically create a very small but extremely valuable niche.
“This is in full accord with the information economy demanding ever-greater specialisation, because no-one does what we do quite like we do.
“This applies even in markets where there appears to be an endless supply and small demand, such as acting and sport. There are hundreds of motor-sport drivers but only one Schumi.”
In all fields, the key to leadership is enthusiasm, inveterate curiosity and continual learning. Yet these things are not “work.”
Thinking the 80/20 way involves the combination of ambition with a relaxed and confident manner. It involves reflective thinking (allowing insights to just come, rather than always leaping into action). The more we love something the better we will be at it, increasing the likelihood that it will benefit others.
Expressing and finessing our unique talents rather than pursuing excellence in something we do not love, is the key point. So the punch line is : By identifying what your are good at - then doing more of it, will bring success easily. The great rewards never go to the merely excellent, but to the outstanding.
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