Durban Chamber Annual Report 2014

1
DURBAN CHAMBER OF COMMERCE AND INDUSTRY
ANNUAL REPORT | APRIL 2013 – APRIL 2014
ANNUAL
REPORTDURBANCHAMBEROFCOMMERCEANDINDUSTRY
2014

32
ANDREW LAYMAN | CEO
Chief Executive Officer of the Durban Chamber of Commerce & Industry, a position
to which he was appointed at the beginning of 2011. He formerly occupied a similar
position in the Pietermaritzburg Chamber of Business for thirteen years.
Prior to that date, he had a career in school education which spanned thirty years
and included positions at Glenwood High School and Maritzburg College before he
took office as the Headmaster of Alexandra High School, a post he occupied for ten
years. For a year and a half after leaving the school, he worked in the Education
Department managing what was known at the time as the right-sizing of education.
During his career he had a term as President of the Natal Teachers Society, chaired
the KZN Education Council, served on the Councils of Edgewood College and the
Umgungundlovu FET College, was a member of the audit committee of the Msundu-
zi Municipality and chaired the UKZN’s Centre for Entrepreneurship Advisory Board
and both the Natal and South African High Schools’ cricket organisations.
Mr Layman holds a M Com (Leadership) degree, with a speciality in Local Economic
Development and has become well-known as a newspaper columnist, with weekly
features in the Network publication of The Mercury.
A
lthough this report will reflect the various functions of the
Durban Chamber of Commerce and Industry, it is also intended
to satisfy the principles of integrated reporting. Thus, what the
Chamber has done during the past year will be assessed against the
strategies which have guided its activities as well as the extent to which
the achievement of objectives may be expected into the future.
The Durban Chamber of Commerce and Industry is the largest
metropolitan chamber in the country, and possibly in Africa.
Its reputation is widely enviable. This has been built over 158 years of
service to the Durban business community. Its public profile, espe-
cially in local media, is pronounced, for few articles on current business
issues appear without a Durban Chamber comment.
The DCCI is also extremely active, both in terms of its programme of
events and seminars, and its engagement with government on the
policy and legislative issues of the day.
INTRODUCTION

54
The move took place from 21 to
23 February, enabling Chamber
services to be resumed in Umgeni
Road on 24 February. Some
difficulties delayed the use of the
conference facilities, which will
generate revenue it is hoped,
but it was possible to hold a very
successful opening function on
20 March which was attended by
more than a hundred and fifty en-
thusiastic members and guests.
The move was a once-in-a life-
time project, exceptionally well
conceived and managed by the
Chief Operations and Financial
Officer, Praneel Nundkumar,
which dominated activities for
several months and, in truth,
constrained the time available for
routine and other work.
“The move
was a
once-in-a
lifetime
project ”
OVERVIEW
T
he constitution of a
new Council at the
Annual General Meet-
ing in 2013 was fol-
lowed, after some delay,
by an exercise in strategic
planning held in August in
whichmembers of the Council
participated.
The finalisation of this plan,
concluded some time after the
strategic workshop,
reflects the fundamental
weakness inherent in a
decision-making body which is
too large to be agile and many
of whose members, who are all
engaged in their own business
careers, find difficulty in making
the input requested.
New Premises
The workshop itself included a
visit to two premises thought by
the executive officers to be suit-
able as a home for the Chamber
when its lease at 190 Stalwart
Simelane expired at the end of
January 2014. For some length
of time, two other premises had
been under consideration, but
there had been reservations
about both. It was fortuitous,
therefore, that both of the new
options appealed to Council
members in their different ways,
and the more popular choice,
which was also the least
expensive, was chosen.
This was the Lion Match Office
Park, JT Ross’development in
Umgeni Road. This decision
having been taken, there
followed a period of intense
negotiation around the lease and
its various terms and conditions.
Space plans were drawn, and
accepted, and, after tendering
processes, NMC Design and Alpha
Office were selected to deal with
the layout and design of the new
office and the physical move.
Co-incidentally, both companies
had performed similar services
when the Chamber relocated
from Field Street in 1999.
It transpired that the existing
furniture would be perfectly
adequate, so the costs of
setting up a new office were com-
paratively low, while this had also
been the objective when simple,
functional, but bright and vibrant,
designs were accepted

76
STRATEGY
C
hamber strategies al-
ways include the need
to contain the
resignation of
members and increase
the recruitment of new members,
especially those that are larger,
pay higher subscription fees and
have broader and more
comprehensive views about
local economic development and
the conditions in which it might
flourish.
The financial sustainability of
the organisation is also an is-
sue which bears annual scrutiny,
especially in the case of the DCCI
considering that after auditing
the 2011 Annual Financial
Statements, and those of at least
two years before, the Auditors
raised concerns about‘going
concern’. In the formal sense,
these concerns no longer appear
in the auditors’reports, but the
reality is that without the
exceptional performance of the
Chamber’s investment
portfolio over two years,
operational expenses and income
are close to the point of balance.
The Council convened for a
special meeting on income
generation during November
2013. Following this, detailed
‘business plans’were tabled to
ensure that budget targets were
reached.
S
egmentation of the membership in support of better service offerings which are more closely
related to needs and a corresponding attention to communications. A careful review of the
benefits of membership must be undertaken with the principle of segmentation in mind. This is of
particular importance in the SMME sector where the Chamber’s work has shown a focus on start-up
and fledgling enterprises, rather than those that are functioning successfully and require support to
grow.
• The development of viable and credible Enterprise Development programmes through the
expansion of the department and the appointment of a dedicated manager. Interviews for a manager have
been conducted during March. In the meantime, an Enterprise Development co-ordinator and a person to
deal specifically with the enterprise development obligations contained in the MOA governing the use of
eThekwini municipality grant funding, took up office in 2013. Pending the appointment of a dedicated
manager, considered by the Board to be a priority, the responsibility of enterprise development has lain with
the Manager: Business Services, Dumile Cele.
• Effective and compelling business advocacy. This will be further enhanced by the fact that Dr Stanley
Hardman took up appointment as the Manager: Policy and Advocacy in January. In addition to the
management of the submissions that the Chamber makes on a variety important issues – this has been
accelerated during 2013 even before the manager’s appointment owing to the research work of
Shivani Singh Dr Hardman is tasked with revitalising the standing and area committee structure where a
decision was taken to refer to the committees as forums to dispel the notion of exclusive membership and
the perception of boring set agendas.
• Constructive contribution to local economic development. Having published in June 2013, following
months of preparation, a Business Vision for the Economic Development of Durban, the Chamber is intent
on making a more pro-active contribution to the economic development of the city. This will be done by
engagement with the business community and a closer partnership relationship with city officials.
• Development of staff so as to be professional, dedicated and capacitated. The appointment of man-
agers with more specialist knowledge and expertise has been undertaken as a conscious strategy, despite
the higher costs involved. This has yet to be translated into the necessary transformation of many of the
staff in terms of their productivity, service ethic and professionalism.
• Conscious attention to succession in terms of both standing/area committee chairpersons and staff.
The identification of a CEO-designate to take over from Andrew Layman from 1 February 2015 when the
one-year extension of his original contract will expire, has begun, with the intention that an announcement
will be made timeously enabling an effective hand-over to take place. This will exclude the possibility of a
period of limbo during which an acting CEO will be in office.
• Greater attention to the improvement of governance.

98
A Unique Initiative
Among the highlights of the year
was the preparation of a“Busi-
ness Vision for the Economic
Development of Durban”. This
was undertaken in the belief that
Business should have a hand in
shaping policy rather than just
responding to documents drafted
by government after insufficient
consultation during the
origination phases. All the
standing committees
(now consciously called forums
to avoid the spectre of boring set
agendas), were consulted and
their meetings were used to so-
licit opinion. A number of larger
companies were approached
outside of the forum process
to make input. After several
months of gathering such inputs
and a good deal of research, the
seventy-page
document was released in June
2013. It may be found on the
Chamber’s website –
www.durbanchamber.co.za.
Particularly since the beginning
of 2014 and the appointment of
a Policy and Advocacy Manager,
the forum system will be used to
develop projects by which the
vision will be translated into
reality, at least insofar as the
Chamber is able to influence and
direct trends and events.
Important Partnerships
Towards the end of 2012,
discussions with Transnet Port
Terminals executives encouraged
the Chamber to draft a proposal
for an incubator to focus on the
maritime sector and the TPT
supply chain. This was done
in terms of the DTI’s Incubator
Incentive Fund which, it seemed,
was well-disposed to this joint
venture
involving TPT and the DCCI.
Despite the enthusiasm from
TPT leaders, and the desire of the
Chamber to be involved in what in
its view was a thoroughly worth-
while project by which significant
enterprise
development in an important
emerging sector could be
promoted, implementation
floundered on the grounds of
BBBEE points. There was
uncertainty as to whether TPT’s
financial contribution to this
project to be managed by the
Chamber would be recognised in
the process of verification. To date,
this has not been resolved.
The Chamber’s proposal to the
eThekwini Municipality was more
successful. This was prompted by
the belief that public and private
sectors should work a good deal
more closely together, while it was
recognised that in some instances,
projects managed by the
Chamber might be more effective
than if they were managed by the
Municipality.
This proposal was also
prepared in 2012, but
bureaucratic processes delayed
payment, and therefore
implementation, until June 2013.
In terms of this agreement, the
Chamber is responsible for, inter
alia, staging a Durban Investment
Conference, promoting
business activity in township
areas, notably Umbumbulu,
mentoring a selected group of
vendors to the Municipality,
convening a quarterly
Economic Forum in which
Chamber and municipal
delegates can engage in a formal
and regular manner to discuss
local economic development
and managing a Durban Invest-
ment Ambassadors’programme.
The money paid to the Chamber
(R2,25 million plus VAT) is
carefully managed in terms of
its disposal for agreed purposes
and is subject to regular scrutiny
by a Project Steering Committee
(which comprises two
representatives of each party) and
governed by a rigorous reporting
regimen – monthly to the City
Manager, and quarterly to the
Council’s Economic Development
Committee.
Progress has been slower than
anticipated.
While one may identify several
reasons for this, the underlying
difficulty is the lack of capacity
within the Chamber. Functions,
events, meetings, workshops and
the like held by government and
other agencies at which Chamber
representation is expected erode
the time available to managers
to do the necessary work required
to expedite the work involved in
projects of this nature. A further
proposal will be made for the next
municipal financial year, but it
must be recognised that
comparatively little of the grant
funding accrues to the Chamber’s
revenue account.

1110
PUBLICEXPECTATIONS
C
hambers such as the
DCCI are‘private’or-
ganisations
representing member
companies, yet
they face increasing expectations
from the public quarter.
The Durban Chamber is very con-
scious of the fact that its broader
credibility is at stake in this
context. Yet it remains a chal-
lenge to expend money on out-
reach programmes for which, for
the most part (the grant from the
eThekwini is a notable exception),
there is no supporting income.
However, in the sphere of
enterprise development, thanks
largely to the support of ABSA
and BATSA in the past, the DCCI
has a good record in this sphere.
With the development of the
Enterprise Development
department, and the recognition
that there are functioning small
businesses that need support if
they are to grow and create jobs,
the public expectation in this
regard is likely to be met.
While not specifically related to
small business development,
arrangements have been made
for the establishment of a jobs
portal which enable people
seeking jobs, and employers
seeking applicants for vacancies
to post information for access via
cell phones.
The sphere of youth development
presents greater challenges.
No one in South Africa can
afford to ignore this aspect of the
national welfare, but to engage in
formal programmes is at odds,
possibly, with the mandate which
is directed by formal businesses
within the membership.
As it transpires, most of the
people who seek guidance from
the Chamber in respect of
business establishment or growth
happen to fall within the category
of youth, even if they are not the
younger people whose futures
are arguably the bleakest. This is
a matter that requires
consideration in the future; a
youth leadership is a project that
may prove to have great value.
Within the ambit of corporate
social responsibility, the Chamber
acknowledges that it should set
an example to the business
community by active
engagement in this aspect of
development.
To this end, there was a concert-
ed, and very fulfilling, programme
to support the Edith Benson
Home for infant children on Man-
dela Day, 2013. The non-profit
organisations with the Chamber
membership – there are some 25
– are now supported by a regular
meeting designed to be a forum
for discussion and networking.
In this way, membership may be
made more meaningful, while
their direct contact with the
Chamber, and each other,
provides opportunities that have
not been evident hitherto.
During 2014, the Chamber will
host a conference with the theme
of‘Responsible Business
Citizenship’to contribute
towards an essential
development of business practice
and to the celebration of twenty
years of democracy.

1312
FINANCIALSUSTAINABILITY
T
he Audited Financial
Statements for 2013
reveal a positive
outcome. This is
attributable mainly to
the revaluation of the Chamber’s
investments which have been
safely and productively managed
by Investec.
These are monitored on a
quarterly basis by the Finance
and Investment Committee
which comprises individuals
within the membership who are
willing to devote their time to this
advisory service. The
investments yielded additional
value amounting to R1 617 682 in
2013. Were it not for a few
technical adjustments made by
Ernst and Young, there would
have been a small operational
surplus, but, ultimately, our
accounts reflect an operational
shortfall of R279 419. This rep-
resents a swing of R493 973 from
the operational surplus recorded
in 2012, while the net surplus for
2013 was R1 702 936 as against
R1 803 791 in the previous year.
The successful collection of sub-
scription fees remains a
challenge.
While the total collected for 2013
was on a par with the budg-
eted amount, it was barely more
than had been received in 2012,
despite concerted efforts and a
good deal of time spent by staff
chasing up defaulters. Prior to
May 2011, after which new mem-
bers are contractually bound to
resign in writing before the end
of the year prior to the one in
which subscriptions are due, DCCI
members were accustomed to
deciding at any time not to
“renew”their membership.
Difficult economic circumstances
have prompted many
resignations, especially among
smaller businesses, which,
ironically, are much easier to
recruit. It has been very
encouraging, however, that the
amount paid by members in
advance, that is before the end
of 2013 for the 2014 year, rose to
R2,9 million last year – some R1,3
million more than has been the
case customarily.Subscriptions
accounted for 53% of operational
revenue, while services earned
44,6%. The bulk of this –
R 3,516,959 – came from the
attesting of Certificates of Origin
which remains a key
function that the Chamber
performs. Notwithstanding the
economic constraints evident
in 2013, the revenue from this
source represented an increase of
17% over the previous financial
year. It is understood that the
Durban Chamber processes more
certificates than any other cham-
ber and has clients from other
major centres.
A system to enable the electronic
submission of data for certificates
is being considered in the belief
that this will be more convenient
and, very significantly, enable
the Chamber to analyse impor-
tant export data which has to be
recorded manually at present.
Increases in membership fees
(9%) and the charge for a
Certificate of Origin (9%) for 2014
were responses to increased staff
costs. Experienced managers
with appropriate skills
demand packages higher than
the Chamber has been accus-
tomed to paying, and in 2014 two
additional managers will have to
be supported. Consequently,
it is expected that meeting the
budget will be more exacting
than has been the case in the two
preceding years.
The regimen of expenditure,
however, has been characterised
by prudence and this has contrib-
uted to positive results in 2012
and 2013. Voluntary chambers
wherever they are situated in the
world find it difficult to identify
the means of earning annuity
income from sources outside their
membership. Inevitably, the
same suggestions are made, and
few succeed.
The DCCI is focussing on
advertising discounts to members
which have been offered by other
member companies. In time, this
will be expanded into a
loyalty card scheme depending
on whether company
membership of the Chamber can
be reconciled to the fact that use
of a loyalty card is done by
individuals.

1514
T
he past year has not
been a good one from
the point of view of net
membership. Fewer
than the expected
number of new companies have
been recruited, while in nine
months during 2013, more
members were lost than gained.
During the calendar year, net
membership declined by fifty,
from 2 777 to 2 727, having
reached the zenith at 2 806 in
August. Following resignations
of 29 and 36 in November and
December, respectively, the
membership at the end of
February 2014 stood at 2 753.
It is an apparent trend that many
new members take the initiative
to join, either by visiting or mak-
ing contact with the Chamber, or
applying on the website.
The Membership Department has
embarked on a programme of
holding meetings with a number
of non-members present, such as
in an office or industrial park. It
is hoped that by this means, the
staff will achieve the targets set.
Among the difficulties experi-
enced is the undeniable fact that
the value proposition for
retaining membership has
weakened over time. Except for
large companies, it is not difficult
to recruit new members, but un-
less they take optimal advantage
of what the benefits of mem-
bership are, enthusiasm wanes,
especially when a subscription
statement for the following year is
received.
A second challenge lies in the
inaccuracy of the member
records. For the most part,
member companies do not advise
the Chamber of changes of
personnel or different email
addresses. Active engagement
with members, preferably by
telephonic means, is required.
The Chamber’s Customer
Relations Management
programme is directly linked to
the Accpac programme by which
financial management is effected.
Over the years, this has cost a
very large sum of money, but has
proved too complicated for daily
and universal use.
From a CRM point of view, there-
fore, it is not used effectively, nor
would this be possible without
expensive retraining of staff,
many of whom were employed
after the system was installed.
The need for an effective CRM is
considered urgent and this will be
addressed in the months ahead,
taking account of financial and
bandwidth constraints.
MEMBERSHIP
Sales Manager: Sibusiso Msawoni (centre) with his sales team - from
the left Margret Pillai, Samala Morgon, Marlanee Reddy, Vigie Pillai
and Dibbie Kimber

1716
GOVERNANCE
W
hen the Council was reconstituted
in April 2013, the decision taken
previously that the Chamber would
register as a Non Profit Company
in terms of the Companies Act, was
questioned, and the consequence of this is that
prevarication continues.
In the course of a year, little forward progress has
been achieved, unfortunately. In order for the
organisation to progress, the Chamber is in urgent
need of a statutorily-mandated Board of Directors
which will ensure that it is directed in a way that is
aligned to the Companies Act and other prescripts
and sets an example to business in terms of its
governance practices.
During 2013 Farzana Mall, the Chairperson of the
Chamber’s Audit, Risk and Compliance
Committee, resigned owing to pressure of work.
She had done a great deal to put this committee
on a sound footing and for this the Chamber is
grateful. Her colleague at KPMG, Rubene Ramdas,
succeeded her as Chairperson, but soon found that
she, too, did not have the necessary time to devote
to the Committee.
Early this year, Deshan Chetty of Deloitte was ap-
pointed as the Chairperson and he was joined by
two additional new members.
This committee now comprises Deshan Chetty
(Chairperson), Lingiwe Nyamande, Lungi Xaba and
Amod Kassie. All but Lingiwe, who is a member
of the Board, are not involved in regular Chamber
activities.

1918
T
he Chamber has made
admirable strides in this
sphere of its important
activities. Indeed, its
role as the voice of
business in Durban may be its
most important responsibility,
although, regrettably, not an easy
benefit of membership to sell.
At the heart of this function lies
the Standing and Area Forums
which provide the valuable
opportunities for
representatives of member
companies to come together
to discuss matters of common
concern within a particular sector
or, in the case of the Area Forums,
a particular part of the city. The
concerns of those members in
the South Area are not the same
as those which pre-occupy those
who are located in the Central
Area, for example.
Even more importantly, these
forums allow the concerns of
members to reach the Chamber
management for further action
and the system insists on
reporting to the Council, and
back to the relevant forum, so
that the interventions expected
of the Chamber are undertaken.
The forums also constitute the
mandating structure. Important
matters on which the Chamber
believes it to be important to
comment, are presented for
discussion at appropriate forum
meetings and the input from
members in this way directs the
submission which is ultimately
made. In the absence of a
dedicated manager to oversee
the forum system, attendances
have tended to decline and
agendas have become dull.
Since the appointment of Dr
Stanley Hardman in January,
there are conscientious efforts
to revitalise the forums. It has
become the practice that all
members are notified of meetings
to obviate a common belief that
membership of these bodies is
‘closed’. Chairpersons, and their
deputies, have been engaged in
discussion with the CEO and each
other about various aspects of the
forum system and they have
supported a policy which insists
that every meeting, with the
exception of the Durban Port
Committee, should be centred
around an attractive presentation
on a topic of interest. Ordinary
business is then conducted,
depending on its
relevance at the time, as an
adjunct to the presentation.
The consequence of adopting this
policy is that joint forum
meetings will be arranged
whenever it is desirable to do so.
During 2013 the drafting of
submissions was the responsi-
bility of the Senior Researcher,
Shivani Singh. Her work was of
excellent quality and the DCCI
submissions are high quality, con-
structive documents which reflect
extensive understanding and
research. Despite the Chamber’s
affiliation to SACCI, and, therefore,
indirectly to BUSA, the DCCI has
made many submissions directly
to national ministers and depart-
ments. Since April 2013 the
Chamber has made submissions
on the following: the Integrated
Urban Development Framework,
the Report by the Ministerial
Task Team on the Performance
of SETAs, the Employment Tax
Incentive (Youth Wage Subsidy),
the National Water Policy Review,
Tax Laws Amendment Bill, 2013,
Promotion and Protection of
Investment Bill, the Integrated
Energy Planning Report, the
eThekwini Municipality’s Informal
Trading By-law, the Integrated
Resource Plan for Electricity, the
Proposed Removal of Adverse
Credit Information, Infrastructure
Development Bill, BBBEE
Amendment Bill, Licensing of
Businesses Bill, Expropriation Bill,
the proposed Carbon Tax, a
Discussion Document on the
Preservation and Development
of Agricultural Land. These
expressions of business opinion
have been complemented by a
letter to the Minister of Justice
and Constitutional Development
appealing for amendments to be
made to the legislation covering
emolument attachment orders
(garnishees), input to the MEC
for Transport in KZN regarding
the banning of heavy vehicles on
Fields Hill, a lengthy
submission to Brand SA which
called for comment on the ways
in which the country should
be branded and, as mentioned
previously, the Business Vision for
the Economic Development of
Durban. During the last quarter
of 2013, the Chamber updated
a report first published in 2006
which dealt with the costs of
doing business in Durban.
The growth plan for the Policy
and Advocacy Department
includes the development of a
greater research capacity which
will enable the Chamber to pro-
duce business intelligence reports
which will have saleable value in
the market place.
POLICYANDADVOCACY

2120
A
s has been the case in
respect of the
Chamber’s advocacy
endeavours, the work
of the Business
Services Department, under the
management of Dumile Cele, is
too infrequently known within
the membership.
Yet, business information is
regularly requested by members,
and supplied, efficiently and
promptly. Much of this is related
to international trading, which
constitutes a substantial part of
the work of Business Services.
Considerable knowledge resides
within the staff members who
perform these services.
In addition, the Chamber offers
a Labour Desk service. In the
hands of Diana Boast, the HR
Coordinator, queries about
employment issues can be
answered to save members many
of the difficulties which are
inevitable where labour is
concerned.
The advantage that the
Chamber has in this regard is
access to members whose
expertise is usually available with
a very generous spirit of sharing.
This is the reason that the DCCI is
able to offer a range of
information seminars at
affordable prices to members.
While the amount of information
and expert advice is available
freely on the internet,
suitably-packaged information is
not available so readily, and it is
in this area where the Chamber
seeks to exploit an advantage.
Thus, a seminar on the
Protection of Private Information
Act, or one on Contracts of
Employment, for example,
focussed less on the legal
provisions than their practical
implications for business people,
especially those
operating in small businesses
which do not have access to
specialist departments.
South Africa offers excellent
opportunities to visiting business
people, and those delegations
which choose to visit Durban
inevitably rely on the Chamber to
host functions to facilitate contact
between the visitors and local
business people.
It has been a busy year in this
regard, and the Business Services
Department has organised events
for visitors from the European
Union, Turkey, India, Poland,
Tunisia, Zambia, the UK, Gabon,
Iraq and Namibia. Some
delegations have expectations
that involve a good deal of ad-
ditional work and, consequently,
and because delegations are
sometimes associated with
commercial organisers, the
Chamber has had to levy charges
at times for performing the
expected services. These are
currently minimal and will be
reviewed to make them market
related.
BUSINESSSERVICES
Despite a desire to assist members by arranging group
visits to other countries, the Chamber finds a limited
appetite among member companies for this service.
Nevertheless, some useful support has been provided,
particularly following a careful evaluation of the
outcomes of visiting delegations, one way or the other.
Some Chamber members accompanied delegations to
Zimbabwe and Zambia led by the MEC for Economic
Development and Tourism while investigation into
business opportunities in Zimbabwe conducted by
the Business Services Manager and TIKZN resulted in a
seminar to inform member companies in order that they
could make sound decisions that might enhance their
business prospects.Mention of the value of certificates
of origin as a cornerstone of the Chamber’s business has
already been made. This work falls within the ambit of
Business Services.
The value of the data that may be gleaned from all the
certificates that the Chamber processes (on average
2,000/month) has been recognised and efforts are being
made for this to be captured for generic use. It is a slow
process, until manual efforts can be replaced by the
electronic submission of the information required for a
certificate.
When this is possible, clients will submit the
necessary information on line and then send a
messenger to fetch the certificate which will be
printed out and attested in the Chamber.
The DCCI is in the forefront of a move to electronic
certification (electronic submission and
processing) which is common in some other
countries, but has comparatively little support in
South Africa. The role of Chambers of Commerce
in theprocessing of certificates of origin is
recognised internationally and under the overall
monitorship of the International Chamber of
Commerce.
However, in South Africa, questions have been
raised from time to time, and it would be an error
on the part of chambers to be complacent about
their current ability to earn revenue from this
source. It is considered essential that chambers
take the responsibility very seriously, as the Durban
Chamber does, and ensure that people involved
in the process are trained and regularly retrained
somas to avoid any possibility of fraud.

2322
ENTERPRISEDEVELOPMENT
T
he Chamber’s SMME
Desk was supported by
ABSA for eight years,
from 2004 until 2012.
During that period, the
sponsor provided the person who
managed the service, worked
in the Chamber and reported to
ABSA as employer. It was a
regimen which served the
Chamber well and enabled it to
pursue important programmes in
the realm of enterprise
development. Following the
termination of the seconded
person’s contract, ABSA proposed
that its Enterprise Development
Centre, located elsewhere in Dur-
ban, should be housed within the
Chamber. After some necessary
discussion about this
arrangement, the Chamber
agreed, but the bank decided
that it would await the Chamber’s
move to new premises where
the space available would be
more adequate. Accordingly, the
Chamber took account of ABSA’s
needs when the lease was signed
with the Lion Match Office Park.
The Enterprise Development
Centre would be a tenant of the
Chamber. Unfortunately, by the
end of March this had not mate-
rialised. Staff changes within the
bank had seen shifts in respon-
sibility and, although the agreement in
principle remained acceptable to both
parties, there have been delays.
If it comes to fruition, which is expected,
this will be an arrangement of mutual
benefit, for the Chamber’s people will
collaborate closely with ABSA’s Centre
management while, at the same time, not
excluding involvement with other banks
that may wish to support the Chamber’s
enterprise development programmes.
The appointment of a new manager to
relieve the Business Services Manager of
these additional responsibilities is
awaited. He or she will be expected to
develop a programme which will enable
the Chamber to be a facilitator of
enterprise and supplier development
on behalf of those of its
members who choose to avail
themselves of this facility. It will
also be necessary for the new
appointee to activate the
Procurement Support
Programme which is in place, but
more in theory than in practice at
present. For this to succeed, it is
necessary for small enterprises to
provide the information required
in order to introduce them to
larger companies.At present,
members of this department
are responsible for the township
development project (mentioned
earlier) and a mentorship
programme for vendors regis-
tered with the Municipality. In
the case of the latter, as a result
of an approach by Engen for
enterprise support, these vendors
will all be involved in the
technical sectors. Meanwhile,
SAPREF has sponsored the
chamber membership of fifty
emergent micro and small
enterprises and this is a
vehicle for the support of the
small business sector and BEE
that the Chamber would like to
encourage. It is intended that an
SMME Conference should be an
annual event on the Chamber’s
calendar and this event, last held
in 2012, will be revived in 2014.

2524
EVENTS
A
mong the strategies
adopted for 2014 was
the determination to
approach events held
by the Chamber in a
more integrated fashion.
To this end, the 2014 budget was
prepared with careful attention
being paid to the major events
for the year, what they will cost
to stage, and what profit they
will yield. At the same time,
it was acknowledged that the
anticipated income from the hire
of conference venues fell short of
the budget in 2013. Facilities at
the former office were not nearly
as attractive as they used to be,
while the lack of convenient
parking inhibited attendance at
events. At the new office,
however, the Chamber is able
to offer much more attractive
facilities, security after hours and
a great deal more convenient
parking. It is a drawback that
the conference rooms became
available for use in the middle
of March which meant that at
least a month of possible book-
ings had been lost. Visitors to the
new facilities, including over 150
people who attended the‘launch’
function on 20 March, have been
universally impressed. There is
reason to be confident that there
will be better performance in this
sphere in 2014.
The Annual Dinner in 2013 was
a huge success. Sponsored by
Vodacom, as in previous years,
it drew some thousand guests
who were delighted with the
address given by Robbie Brozin,
of Nando’s fame. The contact
made with Nando’s resulted in
the Chamber assisting in the
management of a function later
in the year which was held by the
company to highlight the plague
of malaria in Africa.
Fortuitously, the Chamber was
approached by a person who
had booked Robin Sharma for a
visit to Durban, but lacked the
infrastructure himself to stage
the event. Together with Inter-
national Business Vaults (Askhok
Sewnarain), which was prepared
to invest in the upfront costs,
Robin Sharma was staged on a
Saturday morning in July.
He drew an audience of some 1
500 people who raved about his
positive message for personal
growth. This event yielded R235
000 profit for the Chamber and
prompted a decision that we
should stage at least one similar
international personality
during 2014. The other keynote
Chamber function, which has
been generously sponsored by
Transnet Port Terminals for 15
years, is the annual Exporter of
the Year Awards. This successful
event was staged during
October 2013. With the support
of TIKZN, the Chamber was intent
on extending the concept of this
function to a week of export-
related events in order to profile
successful companies and assist
smaller companies which might
be interested in exporting.
In addition to these events, there
has been a series of so-called
Power Connections which have
featured such speakers as Bobby
Godsell and Alec Hogg, regular
Coffee Connection networking
events, training sessions and
seminars on various important
topics including Recruitment and
Selection processes, Develop-
ments in the Western Area, the
eThekwini Growth Plan, Supplier
Development, Leadership and
Management, Dismissals in the
Workplace and the revised BBBEE
Codes. A feature of the events
during the year was a Conference
on Halaal Tourism by which it was
hoped to raise awareness of the
importance of this sector within
the international tourism market.

2726
COMMUNICATIONS
H
aving served its pur-
pose by re-establish-
ing regular
communication
between the Chamber
and its members, the Daily Digest
was discontinued earlier this year
in favour of a newsletter confined
to Tuesdays and Thursdays, each
with a somewhat specialist focus
in order to serve the promotion
of Business Services and Policy
and Advocacy respectively. Over
time, it has become clear that
members know too little about
what their Chamber does within
the ambit of these spheres. It is
for this reason that the Tuesday
edition of the Chamber Digest
will continue to report on events
and functions that the Chamber
has held.
Within the context of the
communications policy, the
website features prominently.
This was introduced during the
latter half of 2013 and is built on
a platform which is modelled on
social media to the extent that
it is interactive and allows those
who have registered on the site
to post a variety of things,
including comments,
promotional flyers and so on.
The intention is to integrate the
website and the Chamber Digest
as much as possible, for it is
essential that members, and
others, are drawn to the website
to make use of it, and to increase
the advertising opportunities
available. The website also
allows each forum to have its own
hub for the exchange of views
and for the availability of
minutes, for example.
The website, together with other
systems to which the Chamber
subscribes, enables the posting
of all the presentations that are
done in DCCI events and
seminars. In time, members will
be able to access video clips of
some presentations, and a mo-
bisite is planned.
Throughout 2013, Hashtag SA
(Conrad David) was engaged to
manage the Chamber’s use of
social media which had been
non-existent prior to this
appointment. Significant strides
were made to bring the Chamber
and its activities to the notice of
the public, and, of course,
individuals within member
companies. These media were
also used to advertise events.
Following the expiry of the con-
tract at the end of November, bids
to continue this work were invited
from member companies, and
following a selection
process, it was decided to appoint
Hashtag SA for a further period of
six months.
In the meantime, the
Communications and Market-
ing Manager, Bradley Waltman,
had resigned, so the brief to the
consultant included management
of the website, while the other
aspects of communication were
entrusted to the two members of
the department and the
Events Manager in respect of
events.
Effective communication with
members proves very
challenging, and may become
even more so when compliance
with the Protection of Private
Information Act is required.
The Chamber has many of its own
events and services to advertise
to members, but is also expected
to be the‘postman’for various
branches of government, a host
of NGOs and private companies
which wish to exploit the Cham-
ber’s ability to reach, and influ-
ence, a large number of business
people.
Consequently, a balance has to be
struck between distributing too
many emails and advertising
everything we are expected to
send out. The unsubscription
rate on the part of those who are
irritated by the Chamber’s con-
stant communications is a wor-
rying factor. In response to this
difficulty, more requests for as-
sistance will have to be declined
while those who seek it must be
encouraged to do their own
posting on the Chamber’s
website. It is very pleasing that
since the beginning of
February, activity on the website
has increased noticeably.
There are now 443 individuals
representing companies and
important stakeholders who are
registered to post. This number
stood at 272 previously. Fur-
thermore, the number of unique
views on the website has in-
creased from 1271 in February to
over 4 300 in March.

2928
STAFFING
W
hen Bradley Waltman
resigned in January,
it was decided not
to fill the Communi-
cation and Marketing Manager
position immediately.
The reason for this is that his
tenure had been fraught with
tension owing to the lack of
integration of effort and
understanding between the
Events and Marketing Depart-
ments, and also the structural
division between Marketing and
Sales, that is Membership recruit-
ment and retention. The success-
ful operation of the Chamber,
as envisaged by the current
staffing structure, depends on a
high level of mutual cooperation
among managers and joint effort.
In order to address this, a series of
critical cluster groups has been
established to enable managers
to meet together on a regular
basis to discuss and plan
activities that involve different
departments. It is in these clus-
ters that much of the day-to-day
planning must be done so that
full management meetings are
free to focus on broader strategic
issues. At the same time, the CEO
has introduced regular one-on-
one meetings with each of the
managers to allow him to monitor
their performances. A great deal
needs to be done to encourage
managers to accept delegated
responsibility and give effect to
the activities associated with it.
The introduction of a Perfor-
mance Management System early
in 2013 led to a first round of
appraisals at mid-year. Another
followed in December.
Both led to moderate incentives
for better performers, extra leave
days for the mid-year assess-
ment and a slightly higher salary
increase for the above average
performers at the end of the year.
After the first round of
assessments, some adjustments
were made to the system, but
these did not improve under-
standing or objectivity to any
great extent. Consequently, the
final assessments for the year
revealed worrying inconsistencies
from one department to another.
The achievement of a common
standard, which requires deeper
insights into the principles of
PMS, will develop in time, but the
executive challenge is to
promote this as quickly as
possible. However, the message
that has been conveyed to staff
by the introduction of the PMS,
and the requirement, also intro-
duced in 2013, that staff should
complete daily time sheets, is that
a higher standard of professional
performance is required. To this
end, managers have a critical role
to play.In order to accommodate
some travel difficulties
experienced by the staff
following the move to Umgeni
Road, a Flexitime policy has been
introduced. This does not give
free rein, in the sense that the of-
fice must be adequately manned
during all normal office hours, but
it does allow for some freedom to
choose among those whose daily
trip to work and back depends
on public transport. For the first
six months of 2013, the Chamber
enjoyed the services of four
graduate interns which were
subsidised by a Services SETA
programme. The subsidisation
terminated at the end of June,
but all four were retained at the
Chamber’s expense because of
the value that they brought to its
operations.
They have all been
accommodated substantively
in 2014, but the opportunity to
recruit another group of graduate
interns has not come to light ow-
ing to the SETA’s not being able to
implement a new programme.

3130
ACKNOWLEDGEMENTS
The Chamber, acknowledges with gratitude
• sponsors of various events, including, notably, Transnet Port Terminals, Vodacom, International Bank
Vaults, Absa, Capitec Bank, TIKZN, FNB, SEDA, Emirates Airline and Holidays and many others,
including Tsogo Sun, Coastlands and Three Cities Hotels;
• the services of the members of Council and the Board;
• the work of the chairpersons of the Standing and Area Forums and the members who have
supported those committees;
• all members which have participated actively in the affairs and activities of the Chamber;
• the support of those member companies that have made expertise available for the staging of
seminars and other presentations;
• member companies that have assisted the Chamber by the provision of venues and/or special rates
for the use of their services, and/or benefits for members;
• the media;
• the Chamber’s staff.
Akash Singh
President 10 April 2014

32

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