NMBBC

EDITOR:

1. Before you read the latest response from the Nelson Mandela Bay Chamber of Commerce to our City and all it’s fuel users ONCE AGAIN being penalised for an action that was NOT CAUSED by them….. Let me use the words that everyone else is using; “We are being SCREWED by Transnet who in addition DO NOT take responsibility for the damage to our roads by the hundreds of Manganese Trucks daily are also very CAVALIER with our health and the health of of tourism industry by refusing to remove the Manganes Ore Dump AND the Fuel Tank Farm from a prime piece of land that was GIFTED to them by the City!”
2. Add the estimated R50 Million in additional monthly fuel cost to the estimated R24 Million monthly we continue to pay as a result of the Punitive Water Tariffs that the municipality REFUSES to lift and you can see why this festive season will not be so!

Now, here follows Chamber CEO Denise van Huyssteen’s response to the fuel pricing adjustments announced today:

“The Chamber notes with concern that the latest fuel pricing adjustments (effective 04 December 2024) continue to penalise Nelson Mandela Bay consumers for the cost of hauliers transporting fuel via road from East London, due to the berth at the Port Elizabeth port not being operational.” “It is our understanding that completion of the repair of the berth, which was planned for the 6th of December, has been revised to the 11th of December. It remains unclear however by exactly when the fuel berth will become fully operational again.”

“We estimate that since the rezoning of Nelson Mandela Bay as an inland zone in October of this year, an irrecoverable direct loss to the local economy of approximately R50 million per month has been incurred. Following tomorrow’s fuel price adjustment local consumers will accumulatively be paying R2.49 more per litre for 95 unleaded fuel, diesel and paraffin versus what they would have paid if the area was still a coastal zone.”

“It is our view that the additional costs incurred to date in transporting these fuels into the area by road has been unfairly passed on to businesses, consumers, commuters and local communities. None of these key stakeholders were consulted prior to the rezoning by the Minister of Minerals and Petroleum Products. Businesses, consumers, commuters and local communities have been made to bear the brunt of a shipping vessel accident, not caused by them, by paying inflated prices for fuel and indirectly for other goods and services.”

“We believe that this pricing structure is supposed to be temporary in nature, and that once the fuel berth is repaired, the area will return back to its former allotted zone. We therefore urge the relevant role players to accelerate efforts in this regard to ensure that Nelson Mandela Bay can be reinstated as a coastal fuel pricing zone from January 2025,” Van Huyssteen concludes.

Background information

The fuel berth at the Port Elizabeth Port was damaged in June of this year, resulting in industry hauliers having to transport fuel via road from East London to Nelson Mandela Bay.

The Department of Minerals and Petroleum Resources, in response to the additional costs associated with transporting the fuel to the metro, then decided to implement revised transport tariffs in October, November and now December 2024 for petrol, diesel and paraffin for Nelson Mandela Bay and surrounding areas.  This resulted in interim zone changes in the affected areas, to allow the industry hauliers to recover their fuel transportation costs.

In the best interests of our members, consumers and communities, the Chamber took action by filing an urgent review application in October, to gain access to the information which informed the Minister’s decision and have since received the record of decision from the Department.

From the records received it would appear that the Minister did not consider any other options to mitigate the impact of the issue on consumers, but rather focused solutions on addressing the additional transport supply costs and the recovery thereof.

More over we remain concerned, that this potentially creates a precedent for the state to simply transfer its obligations to innocent parties without taking accountability and without regard to the right to administrative justice which is enshrined in our Constitution.

While we have achieved success in putting pressure on the Minister, as well as Transnet to accelerate the repair of the berth at the Port Elizabeth Port and return the metro back to being part of a coastal pricing zone, we are extremely disappointed that consumers and businesses continue to carry additional costs through the fuel price adjustments to fund this.  It casts doubt that the berth, which is earmarked to be repaired by the 6 th of December, may potentially not achieve this deadline.

As we are a non-profit organisation, the Chamber decided to reach a settlement with the Minister, whereby through a court order it has been agreed that Nelson Mandela Bay will revert back to being part  of the coastal zone once the berth is operational again.  The Minister was not willing to make this adjustment for the December fuel price adjustment, indicating the low confidence levels in the berth becoming operational timeously and which has since become a reality with the completion date being moved forward.

Friday, 29 November 2024, marked a historical milestone as the Nelson Mandela Bay Business Chamber toasted its 160th anniversary during its Annual Banquet held at the Sun Boardwalk Hotel and Convention, which was attended by 850 guests. The banquet is the Chamber’s largest flagship event which provides an opportunity to reflect on progress achieved in the year and to recognise and show appreciation for the contributions of its members.

Delivering his speech during the event, Chamber President Siyolo Dick highlighted the transformative changes the Chamber has undergone in the last three years, shifting from a traditional role to an action orientated and interventionist approach.

“As we reflect on this, the Chamber has evolved overtime as the business environment changed. However, we are now at a point where change is happening so fast that we are leaping from evolution to revolution. We are working off a clean slate and are making it up as we go along, aligned along common values and goals, all focused on positive change and making a difference,” Dick said. 

Dick also emphasised that the business community could no longer stand on the sidelines and complain, and wait for government and politicians to do the right thing. “I’m happy that this Chamber has been trailblazing an alternative path through our efforts to resurge the Bay. We have been rolling up our sleeves to help get things done and providing technical expertise where we can. We do this because we know if the basics are working, the investment and employment will automatically flow from this,” he says.

He further elaborated that the Chamber believed in the immense potential of Nelson Mandela Bay and this was reflected in its drive to unlock the Bay of Opportunity.

Dick said “We believe in our Bay and its people, and are pushing to make sure that our priorities, such as the two ports and the North to South rail corridor, are on the national agenda. As the Chamber, we will collaborate with whoever is committed to doing the right thing.”

Chamber chief executive officer Denise van Huyssteen echoed this vision, praising the critical role played by member companies and their employees in enabling the Chamber to accelerate its efforts and impact this year.

“It is clear to me that the strength of our Bay is our amazing people and this is what sets us apart from anywhere else. Yes we have challenges but we have a united business community who are prepared to take action to achieve common goals,” said Van Huyssteen.

She called for continued mobilisation, collaboration and action to accelerate the impact of key Chamber initiatives, as it radically shifts from “evolution to revolution” to unlock the potential of the Bay of Opportunity.

The Nelson Mandela Bay Business Chamber awarded outstanding leaders from its geographical clusters and task teams yesterday for volunteering their time and expertise to help create an enabling environment in Nelson Mandela Bay.

Commenting on the recognitions, Nelson Mandela Bay Business Chamber chief executive officer Denise van Huyssteen said that the Chamber’s success with its action orientated approach in various key initiatives has been achieved due to the incredible work of volunteers.

“Often this work happens behind the scenes, without the individuals seeking any recognition. In fact, I would venture to say the biggest asset which we have in the Bay is our people. We may have wide urban sprawl but if you look at the way the Chamber has been able to mobilise the business community into action, we really have achieved something special and remarkable,” said Van Huyssteen.

Among the award recipients, Paola Horak, Director of Grindstone Property Management, received the Operational Sustainability Award for her extensive involvement in getting the clusters off the ground and supporting their key initiatives Tati Tsunke, Chairperson of the Beachfront Cluster and General Manager of the Boardwalk Hotel, was recognised for his exemplary leadership in driving collaboration and action.

Angus Clark, Struandale Cluster Lead and Senior Manager at Isuzu Motors, was commended for helping to address infrastructure challenges related to electricity outages. David Mertens also received recognition for his work on municipal electricity tariffs, successfully mitigating substantial increases that would have impacted domestic and industrial users. His intervention resulted in savings of well over R600 million for the current tariff year.

Basil Mugwagwa and Gary Koekemoer were honored for their leadership in helping to improve the metro’s sanitation system through collaboration with the municipality. Mugwagwa is the Lead for the Water and Sanitation Task Team and currently the Head of Engineering at Aspen Pharmacare. Koekemoer is a Climate Change Consultant and the Lead for the Chamber’s Low Carbon Economy workstream for the Local Economy Reinvention Think Tank. “Their work included an assessment of the system, the development of plans to address issues and ongoing technical support. This resulted in driving the improvement in the efficiency of the system from 15% to over 80%,” said Van Huyssteen.

Kelvin Naidoo, the Overall Think Tank Lead and Quinton Uren, the Co-Lead, both received Visionary Awards for demonstrating strategic vision and dedication which has enabled the Think Tank to progress, while ensuring that the various volunteers working in the various workstreams are getting ahead of the curve. This is critical to saving and creating investment and jobs in our local manufacturing economy.

Naidoo is the Vice President of the Chamber and currently Technical Director at Auto X. Uren leads the Altermotive workstream and is the Managing Director of Jendamark.

“These recognitions underscore the Chamber’s commitment to mobilising the business community for positive change in Nelson Mandela Bay. To all the winners today, we would like to extend our warm gratitude for the sterling work you do for the Chamber as this aligns with our vision of positioning the metro as the Bay of Opportunity,” Van Huyssteen concluded.  

The Chamber also handed out the Entrepreneur of the Year award to The Eco Laundry as the 2024 winner. The business provides environmentally conscious laundry services through energy-efficient and self-heating machines with advanced aqua-mixer technology that allows the company to reduce water and energy consumption. The owner, Michiko Mavunga, received various prizes, from MTN and Action Coach, including a R100 000 grant funding towards the purchase of equipment and machinery sponsored by Standard Bank.

To date, the Chamber has established eleven clusters, all driven by a team of committed business leaders from a common geographical area who come together to address operational problems within the sectors of the Bay. Task Teams run by the Chamber cover the priority areas of electricity, water, sanitation, transport and logistics, disaster management, safety and security and business enablement.

The fuel berth at the Port Elizabeth Port was damaged in June of this year, resulting in industry hauliers having to transport fuel via road from East London to Nelson Mandela Bay.

The Department of Minerals and Petroleum Resources, in response to the additional costs associated with transporting the fuel to the metro, then decided to implement revised transport tariffs in October and November 2024 for petrol, diesel and paraffin for Nelson Mandela Bay and surrounding areas. This resulted in interim zone changes in the affected areas, to allow the industry hauliers to recover their fuel transportation costs.

The Chamber notes that this pricing structure is supposed to be temporary in nature, and once the fuel berth is repaired the area will return back to its former allotted zone. We however estimate that this decision is causing an irrecoverable direct loss to the local economy of approximately R50 million per month. By way of example the October unleaded 95 petrol price decrease was supposed to have been 114 cents per litre but due to the rezoning of Nelson Mandela Bay this price decrease was only 31c per litre, representing a loss of 83 cents per litre.

In November the price of unleaded 95 petrol increased by 25 cents a litre but due to the inland zoning this was increased by 83 cents a litre for consumers in Nelson Mandela Bay.  Collectively this means that to date Nelson Mandela Bay consumers have paid R1.66 more per litre for 95 unleaded fuel versus what they would have paid if the area was still a coastal zone.  In terms of diesel and paraffin the collective additional amount paid by consumers is also R1.66 more per litre.

In the best interests of our members, consumers and communities, the Chamber took action by filing an urgent review application in October, to gain access to the information which informed the Minister’s decision and have since received the record of decision from the Department.

From the records received it would appear that the Minister did not consider any other options to mitigate the impact of the issue on consumers, but rather focused solutions on addressing the additional transport supply costs and the recovery thereof.

More over we remain concerned, that this potentially creates a precedent for the state to simply transfer its obligations to innocent parties without taking accountability and without regard to the right to administrative justice which is enshrined in our Constitution.

While we have achieved success in putting pressure on the Minister, as well as Transnet to accelerate the repair of the berth at the Port Elizabeth Port and return the metro back to being part of a coastal pricing zone, we are extremely disappointed that consumers and businesses continue to carry additional costs through the fuel price adjustments to fund this. It casts doubt that the berth, which is earmarked to be repaired by the 6 th of December, is on track and potentially may not achieve this deadline. This may mean that the metro may potentially not revert back to its coastal zone pricing status ahead of the holiday season.

As we are a non-profit organisation and do not have the financial resources of the state, the Chamber decided to reach a settlement with the Minister, whereby through a court order it has been agreed that Nelson Mandela Bay will revert back to being part of the coastal zone once the berth is operational again.  The Minister was not willing to make this change from early December or January when the fuel price adjustments take place, indicating the low confidence levels in the berth becoming operational timeously.

We are very unhappy with the lack of firm commitment and ongoing approach of punishing Nelson Mandela Bay based consumers and businesses for an issue which is not of their making.

It is the Chamber’s view that the additional costs incurred to date in transporting these fuels into the area by road has been unfairly passed on to businesses, consumers, commuters and local communities. None of these key stakeholders were consulted prior to the rezoning by the Minister. Businesses, consumers, commuters and local communities have been made to bear the brunt of a shipping vessel accident, not caused by them, by paying inflated prices for fuel and indirectly for other goods and services.

It is of concern that the Minister did not adequately consider key regional indicators which reflect that Nelson Mandela Bay is in recession and has amongst the highest unemployment rates in the country. Of equal concern is that consumers and businesses are already reeling from the consequences of the massive municipal utility price increases and other factors affecting the cost of living as well as costs associated with operating businesses.

fter two years of disruption caused by criminal vandalism, the traffic lights located at the crucial intersection linking Perseverance Industrial Area to the major routes between Kariega and Despatch has finally been repaired. Its restoration was made possible through a successful collaboration between the Nelson Mandela Bay Municipality and the Nelson Mandela Bay Business Chamber’s Perseverance Geographic Cluster.

The Perseverance Cluster, which operates as the Perseverance Business Association, was the first geographic cluster to be established under the banner of the Business Chamber and the number has now grown to 11 geographic clusters operating across the Metro.  

The traffic lights, which serves as a key traffic control point for the industrial area, one of the Metro’s main economic hubs, had been out of service since vandals repeatedly targeted it. The broken signal caused significant safety concerns and traffic delays for both businesses and residents, negatively impacting the flow of goods and services in the region.
However, thanks to the power of public-private partnerships, the traffic lights are now operational again. The association recognised the importance of maintaining smooth traffic flow and installed a camera system aimed at monitoring and deterring further vandalism.

The association, working alongside the municipality, have committed to regular monitoring of the intersection and have implemented additional security measures to prevent future incidents of vandalism. This partnership underscores the importance of cooperation between the public sector and private enterprises in addressing challenges that affect both local economies and public safety. It further highlights how local businesses are stepping up to help protect vital infrastructure.

“The restoration of this traffic light is a testament to what can be achieved when public and private entities come together with a shared goal. By working collaboratively, we are not only solving an immediate problem but also demonstrating a model of cooperation that can be applied to other areas of service delivery in our region,” said Siyolo Dick, chairperson of the Perseverance Business Association.

“This is a major win for everyone who relies on this route for work and trade. With this partnership, we’ve shown that community engagement and private sector support can play a pivotal role in addressing public service challenges.”

Dick said the traffic lights are now back in full operation, helping to improve the efficiency of traffic flow, reduce congestion and ensure safer travel for thousands of daily commuters using this route.

“The collaborative effort is a prime example of how communities, businesses and government can join forces to enhance service delivery and improve quality of life for all. Our aim as PBA is to continue creating an enabling environment for the businesses within this zone and ultimately create self-sufficiency which will add value for all the stakeholders.”

Perseverance is one of the oldest industrial zones in the Metro and has a competitive advantage of housing world-class businesses and brands, who employ over 10 000 people within an area that is equidistant to customer locations and harbours.  It contributes 5% per month of the total municipal rates paid in the metro.

The Nelson Mandela Bay Business Chamber participated in NERSA’s hearing today on Eskom’s 6 th multi-year price determination which reviews electricity increases for the 2025/26 and 2027/28 financial years. The proposal is for electricity tariffs to increase in the 2025/26 financial year by 43.55% for municipalities, and follows two decades of much higher than inflation related increases in electricity tariffs, says Chamber chief executive, Denise van Huyssteen.

The requested increases are the result of a range of well documented issues including delays in the commissioning of new power stations.

The Chamber is opposing this increase which is looking for around R300 billion income through the imposition of electricity tariffs at an above inflation rate for the next three years. Transferring these costs to businesses and consumers is simply unsustainable.

One of South Africa’s competitive advantages used to be having among the cheapest electricity rates in the world, and now we have a situation where by 2026, medium sized industry in municipalities will be subjected to less competitive tariffs versus other emerging markets.

Municipal inefficiencies and particularly non-payment to Eskom, is a further burden, which is being shifted to the electricity users. The application includes unresolved municipal debt of R187 Billion, to be funded by Eskom through the tariffs.  

Added to this the electricity distribution in many municipalities, including in this metro, is financially unsustainable. In fact the Nelson Mandela Bay Municipality is budgeted to make a R1.3 billion loss in electricity, which previously was a profitable function. Key issues which need to be addressed include illegal electricity connections and meter tampering.

Equally worrying is the lack of investment in routine maintenance and upgrading of the electricity infrastructure. This poses a serious risk to the sustainability of businesses and especially those in the manufacturing sector.  Within the industrial and commercial areas of the metro, we have tracked 66 major power dips this year and 114 unplanned power outages since January 2023. These power outages pose massive risks to our economy among which include production volume targets not being met, loss of export orders, costly damage to equipment and machinery, the elimination of shifts and placement of workers on short time, retrenchments and even relocation of manufacturing plants to other countries or their permanent closure.

One of the fundamental requirements of operating a business is having access to cost effective and reliable electricity power. The Chamber regards this as a high priority and is willing to collaborate with the relevant stakeholders to find and implement sustainable solutions. Specific initiatives which we are currently driving include Adopt A Sub-Station and the Electricity Technical Task Team which incorporates the participation of the Municipality, Eskom and Chamber members and is focused on addressing critical municipal electricity infrastructure issues.

The Nelson Mandela Bay Business Chamber recently underwent its first B-BBEE audit and has achieved B-BBEE Level 3 status on the Broad-Based Black Economic Empowerment scorecard. This accomplishment highlights the Chamber's steadfast commitment to advancing economic transformation and fostering sustainable growth within the Nelson Mandela Bay area.

Commenting on the development, Denise van Huyssteen, the Chamber's chief executive officer, said “We are thrilled to have achieved B-BBEE Level 3 status, which not only reflects the progress the Chamber has made in transforming in key areas of its operations but also reinforces its broader commitment to the socio economic development of the Bay. This further strengthens our position in driving positive change and fostering an inclusive economy within Nelson Mandela Bay and its surrounding areas.”

The Chamber anticipates that this accreditation will enable it, on behalf of its members, to pursue enterprise development and supplier development projects which support its vision of retaining and attracting investment and employment in the Bay.

Van Huyssteen emphasised that the Chamber’s Entrepreneurship Desk supports 350 businesses, of which almost 70% are black owned and 57% are female owned. “The critical work undertaken through this Desk is supported by a number of our members through various measures that include their Enterprise Development and Supplier Development spend and has a direct impact on the sustainability and growth of these businesses.”

Going forward we will continue to accelerate our efforts through project opportunities which are being pursued through our Trade and Investment Desk, Local Economy Reinvention Think Tank and the soon to be launched Skills Development Desk.

With a strong belief in the power of empowering and uplifting local businesses, the Chamber remains dedicated to playing a central role in the positioning and development of the metro as The Bay of Opportunity, a diversified manufacturing hub on the African continent.

“We look forward to continuing our work in partnership with our members and stakeholders which ultimately is driven to build an economy which is centred upon inclusive growth and participation,” concluded Van Huyssteen.

Three Nelson Mandela Bay businesses have emerged as winners in the inaugural Business Ignition Challenge, a collaboration between the Nelson Mandela Bay Business Chamber and Standard Bank. The challenge recognised exceptional small businesses across three categories: Township-based, Youth-owned, and those registered with the Chamber’s Entrepreneurship Desk.

A call for applications was released on 18 October 2024 and 14 Micro, Small and Medium Enterprises (MSMEs) were shortlisted and subsequently presented to a panel of judges which included representatives from the Chamber and Standard Bank. Their pitches focused on the value proposition of each business and how grant funding would assist their growth and sustainability.  

Events Crafted took the top spot in the Entrepreneurship Desk category, receiving a R70,000 grant to purchase essential event management equipment and cover six months of storage space rental. Additionally, an intern will be provided to enhance the company’s administrative capacity.

In the Township-based business category, Malitshe Designs, a home décor and furniture manufacturer specialising in African-inspired products, was awarded R40,000. This funding will help purchase machinery to reduce outsourcing costs.

Natually Nirvana, a youth-owned eco-friendly haircare brand founded by a third-year student at Nelson Mandela University, won the Youth-owned category and received R40,000 to buy a filling machine and expand its garden for increased production.

Chamber CEO Denise Van Huyssteen emphasised the important role entrepreneurs have to play in igniting the resurgence of the local economy.  She said that the Chamber launched the Entrepreneurship Desk before its other Bay of Opportunity initiatives, highlighting its belief in entrepreneurship in diversifying and growing the economy.
“It is clear that the Bay has so much potential but it is up to each of us to be proactive, take action and drive the future we want. Above all, think out of the box – don’t be afraid of experiment and rise to new challenges. As such, I am looking forward to see how you, the entrepreneurs, will actively shape and unlock the potential of the Bay of Opportunity,” she said. 

Another winner was Zwide based Malitshe Designs, who clinched the township based business category and was awarded a grant of R40 000. The business is a home décor and furniture manufacturing company with key focus on creating African-inspired products that showcase the beauty of the African continent. The grant will go towards the purchase of machines to capacitate the business and eliminate costs associated with outsourcing.

Van Huyssteen further highlighted that each winning company will also receive a year of free Chamber membership and access to the Entrepreneurship Desk’s resources, while the other shortlisted businesses will benefit from mentorship and tailored support to address operational gaps.

The Desk currently supports over 300 businesses, of which 54% are female owned and almost 70% black owned. It is supported by its partners Borbet SA, MTN, Standard Bank and Engie.

Standard Bank’s Head of Enterprise in the Eastern Cape, Jonty Louw, said that “as a corporate partner with the Chamber, we recognise the challenges faced by MSME’s and constantly seek ways in supporting them to overcome these challenges. The collaborative efforts gave birth to the Business Ignition Challenge which provided MSME’s a platform to pitch their business to a panel of judges and how a grant fund will be a solution for their business needs. The grant funding is part of the Enterprise Development offering to MSME’s who meets the qualifying criteria.”

#BayOfOpoortunity

Flooding has had a wide impact across the metro with communities in low-lying areas most severely impacted, while the continuity of business operations haves been impacted across most parts  of the Metro, says Denise van Huyssteen, the chief executive of the Nelson Mandela Bay Business Chamber.

This, the second flooding event in just four months, has highlighted the infrastructure maintenance challenges within the metro. “Our view is that a lot of the damage during flooding or heavy rains can be limited if stormwater drains are regularly cleaned and alien vegetation is removed from rivers,” she says.

The Markman area is reportedly the most impacted due to the area’s poor state of nfrastructure, while damage and disruptions were reported to business in areas such as Neave/Korsten, Perseverance, Baakens Valley, Kariega, Newtown Park and Deal Party.

Four businesses in North End and one in Deal Party have had their operations flooded, while 90% of manufactures in the Struandale area have not been able to operate due to a power outage which kicked in at 03h00 today. This is the second power outage in the area since Saturday and is unrelated to the floods. 

According to 78 businesses polled by the Chamber across the metro, 81% have been affected by the floods with 62% reporting high absenteeism levels. A further 35% have reported that their facilities have been flooded, with Markman, Perseverance and Kariega being the hardest hit.

High absenteeism has been widely reported as a major issue across most businesses in the metro, with many manufacturers running limited operations or skipping shifts,” says Van Huyssteen.

She further elaborates that the taxi industry, which provides a vital service to thousands of commuters across the metro, was unable to access many flooded roads and thus transport employees to work.

The Chamber has opened up its premises as a drop-off point for supplies and is currently working with the Gift of the Givers to co-ordinate support for disaster relief efforts for those who have been affected. 

So far, community organisations such as the Community Chest and Rotary Club have stepped in to support with various items. Intertown Transport has availed its fleet to provide transportation of donated supplies from across the country to Nelson Mandela Bay at their own cost, while their operations are also serving as collection points.

Van Huyssteen says that some of the emergency supplies required include toiletries, baby care products, blankets and non-perishable food.