Guest

Denise van Huysteen, on behalf of the Nelson Mandela Bay Chamber of Commerce, comments on the 12 March Budget announcements:

“The rapid global geopolitical shifts from a trade, healthcare and Just Transition perspective, and the onset of trade wars, will have major implications for South Africa’s economy. In these unprecedented times, our country needs to be agile and proactive in responding to these changes and will need to dramatically speed up efforts to improve logistics, infrastructure issues and the turnaround of municipalities. Earning confidence from business and investors is critical in rebuilding the country’s economy, and the Budget is an important vehicle to further enable this.”

“The Chamber is relieved that the revised Budget Speech was finally tabled after being postponed in February, thus avoiding any further delays to what is a critical event for our national economy. The Budget must thus promote economic stimulation and improve the outcomes from government spending, so that accelerated focus can be placed on getting an enabling environment in place to encourage much needed, critical business investment, and job creation.”

“The increase in VAT comes at a time when businesses in our metro are already grappling with a fragile and challenging economic environment caused by local, national and global developments. As a result, this additional tax burden will likely force businesses to pass on the increased costs to consumers and will lead to higher prices for goods and services, reduced disposable consumer income and placing further financial pressure on households already struggling to make ends meet. We however note the Minister has restricted the VAT increase to 0,5% for 2025/26 year and that the 0,5% increase planned for 2026/27 will be reviewed as to whether it is really necessary at the time.”

“The Chamber welcomes the fact that corporate income tax will not be increased, especially given the fragility of our economy, since some businesses would have found themselves with no choice but to downsize or reduce their workforce, which would have been disastrous for our region, especially with an already alarmingly high unemployment rate.. The creation of job opportunities is crucial, and higher taxes risk further hindering these efforts, as they could discourage the very growth that is necessary for generating employment.”

“We further welcome the fact that public private partnership regulations will be amended to encourage more private sector participation particularly in the area of transport and logistics where the Chamber and its members have been lobbying for a more effective rail network to support key industries in our region such as the automotive and agricultural sectors. The focus should also be on improving tax collection efficiency, dramatically improving the productivity levels of government entities, reducing wasteful government expenditure and fostering innovation and investment in the economy.”

“The government must also prioritise creating a conducive environment for businesses to thrive by addressing infrastructure challenges and reducing unnecessary red tape. The shift to implementation is vital  and government should continue collaborating with the business community to find ways to boost growth, support job creation and retain investments. We trust that the formal approval of the Budget by the relevant parliamentary committees will be facilitated expediently in order for the implementation to commence.”

The Nelson Mandela Bay Business Chamber is set to host its Annual General Meeting on 28 May 2025, featuring a dynamic panel discussion with some of South Africa’s leading business experts who will provide invaluable insights into the future of the South African economy.

The discussion will be facilitated by Rochelle de Kock, the Editor of The Herald, and will feature Wandile Sihlobo, the Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz), a member of President Cyril Ramaphosa’s Economic Advisory Council and a published author of two books. He is widely recognised as a thought leader in the agricultural and economic sectors. His expertise on land reform and agriculture makes him a key voice in South Africa’s development.

Joining him will be John Cairns, the Head of Research at Rand Merchant Bank. Cairns is a highly respected commentator on geo-politics, currencies, markets, and trade strategies. His global perspective and deep understanding of financial markets offers essential insights for both business leaders and investors.

The discussion will centre around the current geopolitics, particularly President Trump’s assertions regarding South Africa’s Land Expropriation Bill, recently passed by Parliament. This legislation, coupled with the nation’s role in AGOA (African Growth and Opportunity Act) and Free African Trade, has placed the current state of relations between South Africa and the United States in a precarious position, threatening to derail South Africa’s participation in these key trade platforms.

Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber, highlighted the significance of this event, stating: “In a rapidly shifting global political and economic landscape, it is essential to have leading experts like Wandile Sihlobo and John Cairns sharing their insights. Their participation in this discussion will offer clarity on the key issues impacting South Africa’s growth, especially in relation to the recent geopolitical shifts and economic tensions surrounding the Land Expropriation Bill and our trade relations with global powers like the United States.”

“These issues threaten to derail South Africa’s standing in key trade platforms, making the conversation even more timely and critical.”

The Nelson Mandela Bay Business Chamber officially launched the Bay of Opportunity portal today, a dynamic and user-friendly platform developed pro bono by Wirk, one of South Africa’s leading software firms. The portal serves as a dynamic platform designed to connect investors with local opportunities, suppliers, and service providers.

In her remarks, Denise van Huyssteen, Chief Executive Officer of the Nelson Mandela Bay Business Chamber, emphasised the significance of the portal for the region’s growth and economic transformation.

“The Bay of Opportunity portal is a game-changer for the Nelson Mandela Bay region,” said van Huyssteen. “We are proud to have created a platform that aligns with our unified vision to position the Bay as the go-to destination for manufacturing and business investment in Africa. By connecting investors with crucial resources and local opportunities, we are not only encouraging economic growth but fostering collaboration and creating a conducive environment for businesses to thrive.”

The Bay of Opportunity portal is positioned as a one-stop-shop for investors, offering easy access to vital business information and local services. It is designed to streamline the process of exploring opportunities, connecting with suppliers and discovering valuable business resources in the Bay. The portal will showcase key business service desks such as the Trade and Investment Desk, Exporters Desk, Entrepreneurship Desk, Skills Development Desk and the Local Reinvention Economy Think Tank. Each of these service desks will provide targeted support to investors, entrepreneurs and businesses, helping them navigate the local landscape and unlock the vast potential of the Bay.

“The platform’s strength lies in its ability to simplify and centralise critical resources for investors,” continued van Huyssteen. “It’s not just a website, it’s a key tool for driving collaboration, creating new business ventures and ensuring that the Bay becomes a hub for economic opportunity.”

With its emphasis on fostering strong, mutually beneficial relationships, the portal’s goal is to enhance the region’s global competitiveness, promote growth and build a resilient business ecosystem.

Nico Claassen, Chief Operations Officer of Wirk, said of the company’s involvement in the project. “At Wirk, we are always looking for ways to collaborate with like-minded partners and support initiatives that drive growth and innovation,” said Claassen. “We are extremely proud to have contributed to the development of the Bay of Opportunity portal. By providing this invaluable resource pro bono, we hope to empower investors to easily access the tools and connections they need to succeed in the Bay. The portal represents a bold step forward in making Nelson Mandela Bay a prime investment destination, and we’re excited to be part of this journey.”

The Bay of Opportunity portal is now live and available to all investors and businesses looking to explore opportunities in Nelson Mandela Bay. The Chamber encourages businesses, investors, and stakeholders to visit the platform and engage with the resources that can help unlock the Bay’s potential.

In a crucial step towards safeguarding the electricity supply in Nelson Mandela Bay, the Perseverance Business Association (PBA), a geographic cluster of the Nelson Mandela Bay Business Chamber, has installed state-of-the-art thermal cameras at the Redhouse Substation. This move enhances early detection capabilities for fire or electrical arcing, vital for preventing potential threats to the substation and ensuring the stability of the electricity supply in the area.

The installation forms part of the Chamber’s Adopt-A-Substation initiative, a pioneering programme designed to protect key infrastructure through robust security measures. Under the initiative, businesses in specific areas are taking responsibility for implementing monitoring systems to guard substations against theft, vandalism, and other potential disruptions.

Brenton van Vuuren, Acting Chairman of the Perseverance Business Association, emphasised the importance of proactive measures in safeguarding critical infrastructure. “Our goal is to ensure that we take every possible step to prevent disruptions to power supply that could negatively affect local businesses. By installing thermal cameras at Redhouse, we can detect potential threats at an early stage, minimising the risk of damage or service interruption.”

The initiative, launched in 2022 with a groundbreaking Memorandum of Understanding (MoU) between the Nelson Mandela Bay Municipality and the Chamber, is a key part of the broader efforts to secure the metro’s vital electricity infrastructure. Since its inception, the Adopt-A-Substation programme has grown to encompass 20 substations across the Metro. The programme encourages businesses to invest in monitoring, surveillance and physical security measures to ensure substations remain operational and secure.

Denise van Huyssteen, Chief Executive Officer of the Nelson Mandela Bay Business Chamber, explained, “The Adopt-A-Substation initiative is a vital part of our strategy to support businesses and create a stable operating environment in Nelson Mandela Bay. We are pleased with the progress we've made since the programme’s launch, and the addition of advanced technology like thermal cameras, is an important step towards improving the electricity infrastructure’s resilience. Ultimately critical initiatives such as this further contributes to driving towards a more stable and reliable environment in which business can operate and protect jobs.”

With the successful collaboration of businesses, the programme has contributed to a more secure and reliable electricity supply, which is vital for economic growth and stability. The Perseverance Business Association’s involvement underscores the critical role the business community plays in proactively safeguarding key infrastructure in the metro.

“The Budget will send a strong signal as to whether the Government of National Unity has been able to unify on spending priorities, focused on the effort needed to achieve the 3% GDP growth target in the economy by the end of this year. The Budget must facilitate an enabling environment for business, to support the drive for private sector investment that leads to sustainable job creation.”

“It is important for investor confidence and improving the country’s credit ratings that the government demonstrates fiscal discipline – spending within its means, and a path to debt reduction.”

“Priority must be put on initiatives that stimulate economic growth and support investment, particularly in the realm of infrastructure development, especially more detail on the R940bn investment in infrastructure announced in the State of the Nation address. We would like to see acceleration of public-private partnerships, in infrastructure development and particularly to strengthen the rail network and make it more efficient.”

“Business would like to hear answers on the financial challenges facing Transnet and Eskom, and in particular measures to address the ballooning municipal debt to Eskom and how efficiencies at our harbours can be improved to the benefit of the economy.”

“Additionally, urgent focus needs to be placed, at a local government level, to ensure that the required action is taken to address Municipal water, sanitation and electricity infrastructure issues.”

“All in all, the Budget must represent more than just talk and must direct actual action to dramatically improve South Africa’s enabling environment and competitiveness versus other African countries and emerging markets around the globe.”

“As the Bay is the hub of SA’s automotive industry, we would like to hear progress regarding reform of the Automotive Production & Development Plan (APDP), on incentives to support new energy vehicle manufacturing and stimulate consumer demand, as well as measures to support the retention of local vehicle manufacturing and employment.”

“With the right enabling environment in place and backed by concrete actions from government, particularly in terms of addressing key policy issues, we firmly believe that the Bay’s economy has the potential to grow and realise its vision of becoming the Bay of Opportunity,” Denise van Huyssteen, chief executive officer of the Nelson Mandela Bay Business Chamber.

A panel discussion exploring key issues surrounding the current state of technical skills development and the future needs of local manufacturing industries formed part of today’s official launch of the Nelson Mandela Bay Business Chamber’s Skills Development Programme. The panel featured key industry leaders such as Chamber President and overall Think Tank Lead Kelvin Naidoo; Gideon Smith, Marketing Manager for S4 Integration; and Andiswa Mbatha, Dealer Network Development Training Manager at Stellantis.

Kelvin Naidoo reaffirmed the Chamber’s vision of positioning Nelson Mandela Bay as the diverse manufacturing hub on the African continent. “To fulfill this vision, we must ensure that there is a strong pipeline of skilled talent ready to meet the demands of both existing and emerging industries. While our foundations are strong, there is still work to be done in aligning the skills available in the local market with what industries require, particularly in emerging sectors like the hydrogen economy and alternative mobility.”

As a first step, he outlined that the Skills Development Desk will conduct a comprehensive Skills Audit across key industries to pinpoint areas of skills shortage. “This audit will provide us with critical data to create an industry-driven, targeted approach to skills development that can address the immediate needs of the Bay while anticipating future trends. By ensuring that our young talent is equipped with the right skills, we will create sustainable jobs and stimulate further economic growth.”

Naidoo also emphasised the importance of preparing for the shift towards the hydrogen economy and alternative mobility, sectors that are expected to grow rapidly. “These industries will require specialised skills in green energy, electronic engineering and automation, and through the Skills Development Desk, we will focus on providing relevant training and skills to keep our workforce competitive, both locally and internationally.”

Gideon Smith highlighted the importance of focusing on technical skills to stay competitive in a globalised market. “The focus on technical skills is driven by the increasing demand for scarce and specialised skills that are essential for industries shaping the workplace of the future and economy. In sectors such as manufacturing, energy, and IT, there is a growing need for expertise in electronic engineering, mechanical engineering, and robotics. As an existing investor, we are prioritising these disciplines, as they are fundamental to innovation, automation, and the development of smart technologies that enhance efficiency and competitiveness,” he said.

He also pointed to the significant role Artificial Intelligence (AI) will play in the future of work.  “Artificial Intelligence is set to play a transformative role in the workplace, but rather than replacing human jobs, it will enhance efficiency, accuracy, and problem-solving capabilities. AI will automate repetitive tasks, streamline processes, and provide data-driven insights that improve decision-making. However, the human element remains irreplaceable – machines lack the ability to understand emotions, cultural nuances, and customer frustrations, which are crucial in relationship-driven industries. AI will complement human skills by enabling professionals to focus on higher-value tasks such as strategy, innovation, and customer engagement. The future of work will be about collaboration between humans and AI, ensuring that businesses can operate smarter while maintaining the personal touch that the customers value.”

Smith reinforced the need for strong collaboration between the education sector and industries to ensure that curricula align with real-world business requirements, stressing the importance of both technical and soft skills for the future workforce. “Over the next three to five years, I hope to see the Skills Development Desk promoting and enabling the development of a highly skilled workforce that helps to drive innovation and economic growth in Nelson Mandela Bay.”

Mbatha, from Stellantis, shared her perspective and stressed the importance of building relationships with local stakeholders to ensure that the region’s skills development efforts align with the needs of businesses.

“Stellantis executive has been very intentional about being a part of the local community and this involved building relationships with key stakeholders that drive economic development such as the Chamber to enable us to better understand the skills landscape. Through these strategic partnerships, the Chamber has been able to support the building phase of the Stellantis business with skills audits, matching skills to business requirements and forging strong relationships with trade schools and universities,” Mbatha said. Mbatha also discussed the importance of embracing automation within manufacturing environments.

“In order to run a successful operation we need a variety of skills and expertise across multiple disciplines to ensure efficiency, safety and quality in our final product. The main roles being engineering professionals, including mechanical, electrical and automation specialists which play a crucial role in optimising production. With a global shift to 4IR, automation is simply a part of that and we have to embrace it and use it to drive efficiency and increase quality. While automation is critical for quality production, skilled professionals remain essential for overseeing, maintaining, and refining these systems. Our future will likely be a hybrid model, combining human expertise with intelligent automation to maximise productivity and innovation. Prioritising these key skills will enable us to establish a world-class facility that drive economic growth and industry advancement.”

In closing, Mbatha highlighted the Bay’s potential as a place to live and work, noting its excellent quality of life and balanced work environment. “The region has a lot to offer, both professionally and personally. With the right investments in skills development, we will continue to grow as a manufacturing and automotive hub,” said Mbatha.