quarterly report - proudly south african...• the quarterly report was approved. • the ceo...

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QUARTERLYREPORT

1 OCTOBER - 31 DECEMBER 2018Quarter 3

2018/19 Financial Year

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APPROVAL OF THE REPORT

Recommended by the CEO for Approval

Name: Mr. E. Mashimbye Name: Mr. H. Gabriels Signature: Signature:

Rank: CEO Date: ___/___/2019 Date: ___/___/2019Rank: Chairperson

Endorsed by the Accounting Authority

Q U A R T E R LY R E P O R T F O R Q 3 ( O C T O B E R T O D E C E M B E R 2 0 1 8 )

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Acronyms

Executive Summary

Governance and Oversight

The quarter under review

4.1 High level achievements for the quarter4.2 Areas where targets were not met 4.3 Membership Report 4.4 Highlights for the quarter 4.5 PR, Communications & Media 4.6 Presentations 4.7 Above The Line Campaigns

Performance for the period under review

PFMA and treasury regulations checklist

Progress on actions in the risk register

Progress on post–audit implementation plan

Financial Report

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A C R O N Y M S

The following are definitions of the acronyms used in the report

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Accord The Local Procurement Accord (an agreement signed on 31 October 2011 by labour, government, business and community representatives to promote local procurement in South Africa, in support of the New Growth Path and government’s aim to create 5 million jobs by 2020.

APP Annual Performance Plan.

Brand SA Brand South Africa, an agency of the government of the Republic of South Africa whose objective it is to market South Africa as a foreign investment destination.

CGCSA Consumer Goods Council of South Africa

CPO Chief Procurement Officer.

CIPC Companies Intellectual Property Commission.

COTII Council of Trade and Industry Institutions.

CSI Corporate Social Investment.

EDD Economic Development Department, a national government department in the Republic of South Africa.

FMCG Fast Moving Consumer Goods.

IPAP Industrial Policy Action Plan

NCPC The National Cleaner Production Centre, a programme of the dti, housed under the CSIR which focuses on assisting companies implement cleaner production and resource efficiency measures.

SALGA South African Local Government Association.

SAPBA South African Premier Business Awards.

SAPS South African Police Service.

SARS South African Revenue Service.

SOEPF State Owned Enterprises Procurement Forum

the dti Department of Trade and Industry, a national government departmentin the Republic of South Africa.

The Summit The Local Procurement Summit & Expo.

UN United Nations.

NEDLAC National Economic Development and Labour Council, an entity of theDepartment of Labour.

NT National Treasury.

PFMA Public Finance Management Act No. 1 of 1999.

Proudly SA Proudly South African, a not for profit company incorporated in terms of the Companies Act

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During the quarter under review a number of milestone events shaped the economy, one of which was the appointment in October of former Reserve Bank governor, Tito Mboweni to the position of Minister of Finance, replacing Nhlanhla Nene who resigned.

In addition, October saw the convening of the Presidential Jobs Summit, 20 years after the inaugural Summit in 1998, as well as the Investment Summit, both hailed as potential game changers, if all the promises made by government, labour and business are kept. Proudly SA played an instrumental role at the Jobs Summit specifically, where it led a delegation made up of various private sector corporates that made localisation commitments at the summit, all linked to either increasing their local procurement levels or the percentage of local content used in their production processes.

In November, SACCI’s Business Confidence Index rose by only 0.3 points month on month, but at 96.1 was nevertheless 1 point higher than the same period one year ago. Trade conditions remained in negative territory, unchanged from October and even Black Friday did not have an impact on already subdued trade activity.

In December, the economy and the nation received the welcome news that the economy

had grown by 2.2% and SA officially exited the technical recession which had been hampering growth. This was the strongest growth since the final quarter of 2017. However, the end of the calendar year was not without its problems as there was confirmation of the introduction of the minimum wage in early 2019, a recurrence of load shedding and the adoption of the intention to appropriate land without compensation, all adding to the disruption of some trade activity.Nevertheless, growth was reported in the critical manufacturing sector, financial sector and in the transport industry. The agricultural sector made some gains on a catastrophic decline in the previous quarter, but mining activity and productivity slowed, showing a contraction of 5.4%.

Most disappointing, the unemployment figures remained stubbornly high at over 27% throughout the period in review, and imports rose, principally of machinery, electronic goods and vehicles, by as much as 26.7%.

This means the efforts of Proudly SA need to be doubled to promote localisation through investment led re-industrialisation if we are to combat the flood of imported goods, and to grow our workforce.

E X E C U T I V E S U M M A R Y

This report covers the period 1 October – 31 December 2018 and focuses on various highlights during the period:

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G O V E R N A N C E A N DO V E R S I G H T D U R I N G T H E Q U A R T E R

During the period under review, the Board and/or its sub-committees held the following meetings:

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3.1) ANNUAL GENERAL MEETING

3.1.1 The Board convened for the Annual General Meeting on 28 November 2018, where the directors received reports on the work of the organisation during the April 2017 to March 2018.

3.1.2 The Sub Committees of the Board reported on the key discussions and recommendations for the period April 2017 to March 2018.

3.1.3. The Directors were confirmed as per the nominations received from NEDLAC and the auditors were con firmed to be NEXIA SAB&T for the ensuing year.

3.2) BOARD MEETING

The Proudly SA Board of Directors met on 28 November 2018 and considered the following:

• Approved a revised Terms of Reference of the Board of Directors• The CEO reported on the outcomes and next steps following the Annual Board Strategy Session. • The Quarterly Report was approved.• The CEO appraised the Board on the progress made regarding the Online Shopping Platform. • The CEO updated the Board on the list of 16 items identified for the Import Replacement Project which would

be pursued in 2019. • The Board received reports from the various Subcommittees • The Board approved the recommendation from the HR and Remunerations Committee to award staff a

performance bonus on confirmation from the Finance and Procurement Committee that it was affordable for the organisation

• The Board noted the Management Accounts and Cash Flow

3.3) AUDIT AND RISK COMMITTEE

The members of the Audit and Risk committee held their meeting on 1 November 2018 and the meeting considered the following:

• The Committee received the revenue and expenditure trends and profile leading up to the year under review;• The Committee received reports on Internal Audits conducted on Human Resources and Information Technology. • The Committee noted that the audit opinion was unqualified. • The Committee noted the Quarterly Risk Register• The Committee approved the RFP for the provision of Internal Audit Services and recommended it to the

Finance and Procurement Committee.• The Committee approved the proposal for the Board Evaluation and approved it, including the cost of R103

224.00.

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3.4) FINANCE AND PROCUREMENT COMMITTEE

The members of the Finance and Procurement committee held their meeting on 27 November 2018 and the meeting considered the following:

• The Committee requested that a register of Trade Exchanges with quantified values be compiled and presented at the next meeting.

• The Committee requested that the revenue and expenditure trends should be tabled to the Committee. • The Committee received an update on the sponsorships for the Buy Local Summit and Expo and requested

regular updates. • The Committee agreed to a 3-year appointment for the RFP for the Buy Local Summit and Expo, subject to the

RFP, SLA and contract stating that the appointment is subject to the event being hosted over the 3-year period.• The Committee approved the appointment of Travel with Fair, as the travel agency for Proudly SA and requested

that the contract should state that the organisation can utilize any sponsorships, whenever secured;• The Committee requested an update on the depreciation and revaluation of assets to be tabled at the next

meeting. • The Committee agreed to move funds from certain line items in the budget to the HR budget. The funds to be

moved would be from the savings derived from rentals, director’s remuneration and travel.

3.5) MEMBERSHIP, MARKETING AND COMMUNICATIONS COMMITTEE

The members of the Membership, Marketing and Communications Committee held their meeting on 1 November 2018 and the meeting considered the following:

• The Committee agreed to offer discounts to members paying more than R20 000.00. • The Committee noted that it was important to monitor and report on the localisation commitments made at

the Jobs Summit. • The Committee noted the Membership and Marketing Committee reports. • The Committee recommended the Festive Season Campaign plan as presented, to the Board. • The CEO updated the Committee on the Import Replacement Project.

3.6) HR AND REMUNERATIONS COMMITTEE

The members of the HR and Remunerations Committee held their meeting on 27 November 2018 and the meet-ing considered the following:

• The Committee received reports on the staff profile, staff movements, staff retention and staff performance. • The Committee approved the addition of 2 managerial posts subject to the job description and budgets being

made available. • The Committee agreed to recommend that the Board approve the payment of performance bonuses for staff.

This was subject to the decision taken at FINCO to move savings that had been derived to the HR Budget. 3.7.) SOCIAL AND ETHICS COMMITTEE

The members of the Social and Ethics Committee did not meet for this quarter as there were no urgent matters for discussion. The Committee will still meet the requirements of 2 meetings per year as per the approved Terms of Reference for the committee.

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T H E Q U A R T E R U N D E R R E V I E W

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4.1) HIGH LEVEL ACHIEVEMENTS FOR THE QUARTER

During the quarter under review, the Proudly SA campaign was able to achieve most of its targets as contained in the Annual Performance Plan (APP) for the third quarter of the 2018/19 financial year.

The following were some of the achievements and most of these are reported in detail in Section 5 of the report:

• Above the Line Campaign reached more than 5 million consumers through the Festive Season Campaign – billboards, mall advertising and television interviews;

• Below the Line campaign reached more than 3 million consumers through the Festive Season Campaign – media launch, newspaper articles, CEO Column, digital advertising and social media.

• Proudly SA participated in 3 expos namely Manufacturing Indabas in Cape Town and Port Elizabeth, and the Consumer Goods Council of SA summit.

• Proudly SA hosted 3 Business forums one each in Bloemfontein (Free State), Kimberley (Northern Cape) and Johannesburg (Gauteng).

• A strategic partnership and membership was finalised with the major clothing retailer – The Foschini Group;

• Proudly SA presented its product database to 1 business association namely, the South Coast Chamber of Commerce.

• Proudly SA participated in 2 Nedlac meetings on illegal imports, illicit trade and unfair trade (dumping)

• The target of recruiting 50 new fully paid up members was exceeded as 61 new members were recruited during the quarter;

• The 80% membership retention/renewal rate for Q3 was achieved. • The database of locally made products and services grew by an additional 264 new products

with the database now having 9 365 products and services.• Proudly SA continued with its tender monitoring system where tenders issued in the public

sector for designated items are checked for compliance with local content provisions.• Proudly SA’s on-line shopping platform with RSA Made is beginning to show grow since its

launch in Q2.

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4.2) AREAS WHERE TARGETS WERE NOT MET:

During the quarter under review, the Proudly SA campaign was not able to achieve all its targets as contained in the Annual Performance Plan (APP) for the third quarter of the 2018/19 financial year, and below are some of the areas where the campaign fell short for the quarter:

• The CSI activity (the installation of a school library) planned for quarter 3 did not take place due to security risks prevalent during the December school vacation, and the installation of the school library will be finalised during Q4.

• A sector specific forum (medical devices) planned for Q3 did not take place and was postponed to Q4, due to extensive consultation still required with both the dti sector desk and industry to finalise details and programme for the event;

• Although 3 Provincial Public Sector Forums were planned, only 2 (Bloemfontein and Kimberley) took place as the Eastern Cape forum was postponed to January 2019 (Q4) due to delayed confirmations from the provincial government which is a strategic partner for the forum;

• Consumer activations planned for Q3 were not held, and to assist with maximising resources, a decision was taken to incorporate the consumer activations into the activities planned for Q4, including the Valentine’s Activations and the Buy Local Expo;

• Youth activations, including campus radio competitions and interviews postponed to Q4 due to the timing of having activations in campuses during exams time, therefore activations moved to Q4.

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4.3) MEMBERSHIP REPORT FOR Q3 2018/19

Overview

The Proudly South African membership base is growing at a steady pace with 1,425 companies currently registered as members of the Campaign. Quarter three welcomed 61 new members, making this the fourth consecutive quarter that the departmental target of 50 new members have been exceeded.

This quarter also saw the Campaign’s membership base increase with altogether 17 out of the 26 sectors. The Manufacturing Sector remained the strongest in terms of new recruits as 15 members joined the Campaign followed by ten new members in Professional Services. The Proudly SA Campaign footprint across the country is also continuously increasing as the new members came from all nine provinces with Gauteng bringing in 32 new members, the Western Cape 12 and seven from KwaZulu-Natal.

In terms of Membership Classification, 55 SMMEs joined in quarter three along with three Diamond members including LIXIL Africa (Pty) Ltd – a manufacturer of water and housing products, packaging giant Nampak Ltd, and Lasher Tools – the only hand tools manufacturer in the country with a legacy spanning 90 years this year.

Leads that were converted to members originated from various platforms including referrals from both internal and external stakeholders, companies that form part of larger corporations’ enterprise and/or supplier development programmes nominated for sponsored Proudly South African membership (“Beneficiary of Diamond”), leads generated from the membership consultants themselves, and leads obtained from Proudly SA’s presence at events including expression of interest gleaned from telephonic and online queries.

The rate of retention of member companies for the current quarter is on target at 80%. It is important to note that as many as 15 Diamond members renewed their memberships including Grain Field Chickens and all the VKB subsidiary companies, LIL Masters Diapers MNF (Pty) Ltd, Sandvik Mining RSA (Pty) Ltd, Nedbank Limited, Twizza (Pty) Ltd, WOA Fuels and Oils and Adcock Ingram Healthcare (Pty) Ltd.

The target of the number of local products and services listed on Proudly SA’s database for this quarter was exceeded by 176% at 264 items added.

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Q U A R T E R 3 H I G H L I G H T S

New Members

Target 50

Achievement 61

Renewal Rate (in percentage)

Target 80%

Achievement 80%

Database of Local Products and Services

Target 150

Growth 264

Number currently listed 9,365

Exceeded target (in percentage) 176%

LOOKING FORWARD TO QUARTER 4

With the 2019 Buy Local Summit and Expo fast-approaching, the Membership Department is expecting an influx in members renewing their memberships in order to participate in the Campaign’s flagship event. To complement the Campaign’s efforts with the Import Replacement Project and the upcoming Sector Forums, the Membership Department will continue to recruit companies in the designated sector space, the fast-moving consumer goods space to promote logo visibility among consumers, and representative organisations to assist with Proudly South African’s various projects.

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Terms utilised in the tables and charts in this membership report:

Classification of Members

Category SMMEsSmall, micro and medium enterprises turning over less than R5 million per annum and organisationsincluding foundations, councils, associations, and not-for-profit institutions

Annual membership fee payable (excluding VAT)

R500.00

BronzeOrganisations turning over between R5 million and R10 million per annum

R1,000.00

SilverCompanies turning over between R10 million and R30 million per annum

R10,000.00

GoldCompanies turning over between R30 million and R50 million per annum

R20,000.00

PlatinumCompanies turning over between R50 million and R100 million per annum

R50,000.00

DiamondCompanies turning over R100 million or more per annum

R100,000.00

Other Terms

Affiliate of Diamond A company or division that falls under a holding company that is classified a Diamond (Proudly SA member company category)

Beneficiary of Diamond A company that forms part of a larger organisation’s enterprise and/or supplier development programme. The larger organisation is classified a Diamond (Proudly SA member company category)

TE A membership based on a Trade Exchange Agreement

Lead A company before it is converted into a member

Consultant-generated Lead A member consultant who is chasing to convert a lead he/she has generated him/herself

DirectEnquiry received directly from organisation interested in membership

EventLeads generated from Proudly South African’s presence at events

Lead Origin The platform from whence a lead originates

ReferralReferral of a company from an internal or extra stakeholder

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2 0 1 7 / 2 0 1 8 Q 3 N E W L Y - R E C R U I T E D M E M B E R S

Year-on-year Comparisons: 2010/2011 to 2017/2018

MONTH 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

October 0 62 7 16 11 11 17 17 43

November 7 17 9 11 17 18 19 26 13

December 3 21 4 0 6 9 6 6 5

TOTAL 10 100 20 27 34 38 42 49 61

N E W L Y R E C R U I T E D M E M B E R S

Year-on-year Comparison: Q3 2010/2011 to 2018/2019

0

20

40

60

80

100

120

2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

October November December TOTAL

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2 0 1 8 / 2 0 1 9 Q 3 N E W L Y - R E C R U I T E D M E M B E R S

B Y M O N T H

COMPANY SECTOR PROVINCE CLASSIFICATION LEAD ORIGIN

OCTOBER

Asipiko Events & Marketing Media, Marketing and Publishing

Eastern Cape SMME Beneficiary of Diamond

Before Time Indlondlo Event O.E. (Pty) Ltd

Media, Marketing and Publishing

Gauteng SMME Beneficiary of Diamond

Flossie's B and B Catering and Transport Services

Tourism, Travel and Hospitality


Retiqua Waste Group (Pty) Ltd

Utilities and Municipal Services


2020Insight (Pty) Ltd Professional Services Gauteng Silver Referral

African Roots Wine Food Products Western Cape SMME Beneficiary of Diamond

Alabanza and Alegria Trading

Professional Services Gauteng SMME Beneficiary of Diamond

Bahati Tech (Pty) Ltd Information Technology and Telecommunication

Western Cape SMME Beneficiary of Diamond

Bhubesi Nutrition (Pty) Ltd

Food Products Gauteng SMME Referral

Botebo Farming (Pty)Ltd Agriculture Northern Cape SMME Consultant-generated

CBK Master of the Books (Pty) Ltd


Mpumalanga SMME Beneficiary of Diamond

D Naidoo Industrial Manufacturing KwaZulu-Natal SMME Beneficiary of Diamond

Delight Softies Manufacturing Enterprise

Manufacturer Limpopo SMME Event

Denga Import & Export (Pty) Ltd

Export and Trade Gauteng SMME Consultant-generated

Dimzique Enterprise Crafts and Home Industries Western Cape SMME Beneficiary of Diamond

Enhlecreatives Photography & Design

Media Production Services KwaZulu-Natal SMME Beneficiary of Diamond

Fabs Towing Services (Pty) Ltd

Transport and Logistics Free State SMME Direct

Fly Free Pest and Weed Control

Professional Services KwaZulu-Natal SMME Beneficiary of Diamond

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OCTOBER continuedGreatone Infinity Design Information Technology

and TelecommunicationMpumalanga SMME Beneficiary of Diamond

G-Seal Trading (Pty) Ltd Wholesale and Retail Trade Mpumalanga SMME Direct

Have Wings (Pty) Ltd Food Products Gauteng SMME Consultant-generated

Hotstone Manufacturer Mpumalanga SMME Beneficiary of Diamond

Kasi Brothers Events & Production (Pty) Ltd


KwaZulu-Natal SMME Beneficiary of Diamond

Kruger Lowveld Braai Suppliers

Manufacturer Gauteng SMME Consultant-generated

LBM Global t/a Plans4sale Construction, Engineering and Architecture

Gauteng SMME Consultant-generated

MGD Protection Services (Pty) Ltd

Professional Services KwaZulu-Natal SMME Beneficiary of Diamond

Moon Innovations (Pty) Ltd Information Technology and Telecommunication


MST Critical Communications (Pty) Ltd

Information Technology and Telecommunication


Mthimkhulu Peoples Projects (Pty) Ltd

Construction, Engineering and Architecture


Niemen Stud/Niemen Boerdery

Agriculture Gauteng Bronze Consultant-generated

Penny Slein Consulting Manufacturer KwaZulu-Natal SMME Referral

PotjieGuy (Pty) Ltd Food Products Gauteng SMME Referral

Pro Shopper t/a Urban Organics

Industrial Manufacturing Western Cape SMME Referral

Relax The Spas Agent Tourism, Travel and Hospitality

Western Cape SMME Beneficiary of Diamond

Roba Monakedi Guest Lodge


North West SMME Beneficiary of Diamond

South Africa Premium Wineries Association (Pty) Ltd

Community Organisations and Projects

Western Cape SMME Referral

Sparkle Music Culture, Entertainment, Music and Recreation


Supported Employment Enterprises

Manufacturer Gauteng Silver Consultant-generated

The Manufacturing Lads Professional Services Gauteng SMME Event

Thulula Supplier (Pty) Ltd

Professional Services Gauteng SMME Consultant-generated

Tshegofentse Facilities & Engineering cc



Tych Labour Solutions Professional Services KwaZulu-Natal SMME Beneficiary of Diamond

Visit Vakasha Guest Lodge


Mpumalanga SMME Beneficiary of Diamond

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NOVEMBER

Katavi Botanicals (Pty) Ltd

Manufacturer Western Cape SMME Consultant-generated

LIXIL Africa (Pty) Ltd Manufacturer Gauteng Diamond Direct

MBBizz (Pty) Ltd Professional Services Gauteng SMME Direct

Mozee Transport cc Transport and Logistics Gauteng SMME Consultant-generated

Nampak Products Ltd T/A NMS

Manufacturer Gauteng Diamond Direct

Nobunto Handcrafted Products (Pty) Ltd

Manufacturer Western Cape SMME Direct

Proquatech Developers cc


Gauteng SMME Referral

Ripbox (Pty) Ltd Manufacturer Western Cape SMME Referral

Sanria 26 (Pty) Ltd Manufacturer Western Cape SMME Consultant-generated

Sumtin Fresh Food Products Gauteng SMME Beneficiary of Diamond

Vertical Verg (Pty) Ltd Manufacturer Western Cape SMME Referral

Vigil Chartered Accountants Inc.

Professional Services Gauteng SMME Direct

Zazo Communications (Pty) Ltd




DECEMBER

Kwena Products Cape Town (Pty) Ltd

Manufacturer Western Cape SMME Direct

Lasher Tools Manufacturer Gauteng Diamond Referral

Magauta Designs and Projects (Pty) Ltd

Manufacturer Gauteng SMME Beneficiary of Diamond

Training and Progression House

Professional Services Gauteng SMME Consultant-generated

Zuzanna's Wild African Warehouse

Food Products Gauteng SMME Direct

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2 0 1 8 / 2 0 1 9 Q 3 N E W L Y - R E C R U I T E D M E M B E R S B Y

S E C T O R , P R O V I N C E , C L A S S I F I C A T I O N A N D L E A D O R I G I N


S E C T O R


P R O V I N C E

15

10

6

5

4

4

4

2

2

2

1

1

1

1

1

1

1

Manufacturer

Professional Services

Food Products





Agriculture

Industrial Manufacturing

Transport and Logistics


Crafts and Home Industries

Culture, Entertainment, Music and Recreation

Export and Trade

Media Production Services


Wholesale and Retail Trade

2018/2019 Q3NEWLY-RECRUITED MEMBERS BY SECTOR

32127

511

11

1

Gauteng

Western CapeKwaZulu-Natal

MpumalangaEastern Cape

Free State

LimpopoNorth West

Northern Cape

18

55

3

2

1

SMME

Diamond

Silver

Bronze


C L A S S I F I C A T I O N


L E A D O R I G I N

22

18

10

9

2

Beneficiary of Diamond

Consultant-generated

Referral

Direct

Event

19

M O N T H L Y D I F F E R E N T I A T I O N

2 0 1 8 / 2 0 1 9 Q 3 O C T O B E R

7

5

4

4

4

4

3

2

2

1

1

1

1

1

1

1

1


Manufacturer

Food Products





Agriculture



Crafts and Home Industries


Export and Trade

Media Production Services



Wholesale and Retail Trade

2 0 1 8 / 2 0 1 9 Q 3 O C T O B E R N E W L Y - R E C R U I T E D M E M B E R S B Y

S E C T O R


P R O V I N C E

20

7

6

5

1

1

1

1

1

Gauteng

KwaZulu-Natal

Western Cape

Mpumalanga

Eastern Cape

Free State

Limpopo

North West

Northern Cape

20

40

2

1

SMME

Silver

Bronze




L E A D O R I G I N

20

13

6

2

2



Referral

Direct

Event generated

21


2 0 1 8 / 2 0 1 9 Q 3 N O V E M B E R


S E C T O R


P R O V I N C E

7

2

1

1

1

1

Manufacturer



Food Products



0 1 2 3 4 5 6 7 8 9

Gauteng

Western Cape

22




L E A D O R I G I N

0 2 4 6 8 10 12

SMME

Diamond

5

4

3

1

Direct


Referral


23


S E C T O R


P R O V I N C E


2 0 1 8 / 2 0 1 9 Q 3 D E C E M B E R

3

1

1

Manufacturer

Food Products


0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

Gauteng

Western Cape

24




L E A D O R I G I N

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

SMME

Diamond

2

1

1

1

Direct



Referral

25

2 0 1 8 / 2 0 1 9 Q 3 R E N E W I N G M E M B E R S B Y S E C T O R , P R O V I N C E A N D


23

12

9

6

6

4

4

4

4

3

2

2

2

1

Manufacturer

Proferssional Services

Agriculture




Food Products

Healthcare

Representative Organisations


Education, Development and Training

Mining and Beneficiation



2 0 1 8 / 2 0 1 9 Q 3 R E N E W I N G M E M B E R S B Y

S E C T O R


P R O V I N C E

45

10

10

9

5

1

1

1

Gauteng

Free State

Western Cape

KwaZulu-Natal

Eastern Cape

Limpopo

Mpumalanga

Northern Cape

26

49

15

14

2

2

SMME

Diamond

Bronze

Gold

Silver



2 0 1 8 / 2 0 1 9 Q 3 P R O U D L Y S O U T H A F R I C A N D A T A B A S E O F L O C A L

P R O D U C T S A N D S E R V I C E S

PROUDLY SOUTH AFRICAN DATABASE

Period Number of Products and Services

Q1: 2018/2019 8,899

Previous Quarter: 2018/2019 Q2 9,101

Current Quarter: 2018/2019 Q3 9,365

Current Period: 2018/2019 Q3

Target 150

Number of Products and Service Added 264

Target exceeded by 176%

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8,6

8,7

8,8

8,9

9

9,1

9,2

9,3

9,4

Q1 Q2 Q3

2 0 1 8 / 2 0 1 9 Q 1 - Q 3 D A T A B A S E O F L O C A L P R O D U C T S

A N D S E R V I C E S

2 0 1 8 / 2 0 1 9 Q 1 - Q 3 A C T U A L N U M B E R A D D E D V G R O W T H D A T A B A S E

O F L O C A L P R O D U C T S A N D S E R V I C E S

0 50 100 150 200 250 300

Target

Number of Products and Service Added

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4.4) Highlights for the quarter

E V E N T S A N D A C T I V A T I O N S

Manufacturing Indaba, Boardwalk Conference Centre & Hotel, Port Elizabeth – 03 October 2018

The conference fully embraced the changes that Industry 4.0 (manufacturing) is set to bring the sector, identified the drivers of change, the opportunities it will bring for the continent as well as the hurdles to be overcome. It provided delegates with a look into the future by examining cutting edge trends and embracing a forward-thinking mindset. The Exhibition floor was a hive of activity with 18 local manufacturing exhibitors showcasing their products and services.

Participating stakeholders: DEDEAT, Nelson Mandela Bay Municipality, Export Helpdesk, Nelson Mandela Bay Business Chamber, COEGA Development Corporation, AIDC Eastern Cape

Reach for this event: 150Target Audience: Business owners, industry leaders, government officials, funders and investors, industry professionals

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The Proudly South African Local Procurement COSATU Conference, Cape Town International Conference Centre, Cape Town – 11 October 2018

This event works to ensure the broader implementation and support of the Proudly SA campaign by unions in the Western Cape. Union member delegates were encouraged to take the message of the benefits to the economy and job creation of an increase in the uptake/procurement of locally produced products and services back to their respective company employers.

Opportunities within provincial and local government structures to stimulate local procurement were identified and tools for access to funding were presented.

The day was wrapped up with local acts based in the Western Cape showcasing their talents at the Proudly SA local concert.

Reach for this event: 500Target Audience: Businesses, shop stewards, procurement officials

Gauteng Business Forum, Capital Empire Hotel, Sandton, Johannesburg – 24 October 2018

Attracting interest from member and non-member companies, entrepreneurs as well as some government representatives, the forum presented issues relevant to local procurement in the private sector. The event included a panel discussion hosted by Rams Mabote, presenter of Metro fm’s business show, with panelists Tshidi Makgothi, Chief Director for Service Investment Incentives at the dti, Fanie Rakosa, Operations Manager at SARS, Colin Leshou, Provincial Manager at SEDA and Nomvula Makgotlho, Chief Director: Market Access at the Department of Small Business Development. Zahra Rawjee, Director at Uzenzele presented on the assistance her company can provide to small business in accessing funding and Moholwa Motlatjo, DDG: Economic Planning Gauteng, spoke about the province’s work in assisting small businesses within Gauteng. The event was particularly well attended by Proudly South African companies whose presence and participation in debates highlighted the support that the campaign gives to its members.

Reach for this event: 72Target Audience: Business stakeholders, industry leaders, entrepreneurs, member companies, SMME’s, procurement officials and government representatives

30

5th Annual National SMME Colloquium, Birchwood Hotel, Boksburg, 25-26 October

The Annual National SMME Colloquium is a high level event for decision and policy makers who share a vision for small business development. The theme for this year’s Colloquium was Revitalisation of Township & Rural Economies: Role of Youth & Women Owned SMMEs in invoking Disruptive Initiatives through lowering barriers to entry for women and youth entrepreneurs.

The event interrogated current policies that regulate access to cost effective infrastructure, land, financial and non-financial support necessary to drive accelerated economic development within township and rural communities and sought to identify those policies and regulations that impede new entrants to access opportunities especially those from township and rural communities. Discussions included the possible introduction of by-laws and related trading laws favourable to local entrepreneurs and the limiting of entry of large, established companies into the townships in order to protect SMME development in these areas.

Proudly SA CEO, Eustace Mashimbye spoke at the event around local procurement and Proudly SA’s exhibition stand was sited outside the plenary room. Media interviews with Eustace Mashimbye included Khula Grow and eNCA. Reach for this event: 500Target Audience: Policy makers, government officials, SMMEs

Manufacturing Indaba, Century City Conference Centre, Cape Town – 7 November 2018

The Indaba is a spin off from the larger Johannesburg event, and comprised both an exhibition and conference in support of the growth of the manufacturing industry, a priority sector for South Africa. The platform highlighted incentives for manufacturers and investment opportunities. For Proudly South African, the event served as a recruitment opportunity and one to grow our network. Indaba Marketing connected

players in the sector to government, other manufacturers, production managers, financiers, policy makers, industrial leaders, academia and potential investors.

Reach for this event: 113Target Audience: Manufacturing sector, government, funders, policy makers, industry leaders, academia and investors

31

Free State Public Sector Procurement Forum, Bloemfontein – 12 November 2018

Our Public Sector Procurement Forums brings government procurement officials, CFO’s, municipalities, and other public supply chain officials in to one space to discuss matters surrounding localisation. Starting with PPPFA legislation, the forums develop to focus on the benefits of wider localisation in the public sector, which is an enormous potential buyer for local companies. Speakers for the event included the Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs, Dr Mbulelo Geoffrey Nokwequ, Proudly South African CEO, Mr Eustace Mashimbye, and the dti, represented by Mrs Catherine Matidza, as well as Tsogo Sun’s Mr Andrew Lee.

Reach for this event: 40Target Audience: Government procurement officials and supply chain managers and CFO’s, municipalities

Free State Business Forum, Bloemfontein – 13 November 2018

A well-attended and successful business forum was held in The President Hotel, attracting both member and non-member companies. Grain Field Chickens gave a member testimonial and the local media was well represented. SARS, SEDA, SEFA and the dti all sent representatives for the panel discussion. Membership secured 10 leads at the Business Forum.

Reach for this event: 150Target Audience: SMMEs, business

32

Consumer Goods Council of South Africa Summit (CGCSA), The Forum, Bryanston, Johannesburg – 14 November 2018

The summit provided an opportunity to network with CEO’s and top leaders from some of South Africa’s most successful retailers and manufactures. Proudly South African exhibited some of its members’ products and interacted with other exhibitors. The Proudly South African CEO presented at the conference to educate consumers about the importance of buying local and our mandate as a campaign.

Reach for this event: 150Target Audience: CEO’s, supply chain, commercial and integrated sustainability executives and management, brand executives, shopper analytics, SMME suppliers/manufactures, category managers, merchandisers and buyers, sales and marketing executives

Festive Season Campaign Media Launch, Rosebank, Johannesburg – 15 November

Every year, South Africa experiences a spike in retail sales between November and January. Black Friday, which as recently as five years ago meant nothing to South Africans, has now also made its own mark on our retail landscape. Ahead of Black Friday and in preparation for the festive season, Proudly SA launched its Festive Season campaign to the media at a champagne breakfast at Tsogo Sun’s 54 on Bath. Also invited was a selection of music, radio and TV celebrities who along with all the other guests were given branded t-shirts. These formed part of our wider social media campaign as everyone was encouraged to wear the shirts and post on their respective profiles during the December/January holidays. The launch was recognized in a number of published articles and TV interviews about the seasonal campaign and movement in general.

Reach for this event: 50 Target Audience: Media and celebrities

33

Northern Cape Public Sector Procurement Forum, Kimberley – 06 December

The Public Sector Forum brought procurement officials, CFO’s, municipalities, government officials and key decision makers in to one space and discussed matters relating to the PPPFA and to extending localisation beyond legislated sectors. Mr Hendrik Louw, the senior manager for Economic Development for the province gave a very comprehensive presentation, illustrating how localisation could be improved in the province.

Reach for this event: 60Target Audience: Procurement officials, CFO’s, municipalities, government officials

Northern Cape Business Forum, Kimberley – 05 December 2018

Proudly South African in collaboration with The Northern Cape Department of Economic Development and Tourism, SARS, SEDA, SEFA, the dti, and the Department of Small Business Development presented to local businesses on the importance of local procurement and of being part of the buy local movement. Member company, Custoda Trust addressed delegates about the benefits of being a member of Proudly South African, and the Forum generated 10 leads for Membership. The business match making element was well received.

Reach for this event: 85Targeted Audience: Local NC businesses, entrepreneurs, SMME’s, procurement officials and representatives

34

4.5) PR Communications & Media

For public relations, the highlight of the quarter in review was the media launch of the Festive Season Campaign, held on 15 November, and supported by Tsogo Sun who sponsored the venue at 54 on Bath in Rosebank and contributed towards the catering costs. This allowed us to put on a spectacular champagne brunch for a number of media, influencers and popular tv and music personalities. Everyone received a festive season Proudly SA t-shirt which became the focus of the campaign and of our annual social media/ online competition. Although paid for, a series of five podcasts on CliffCentral gave us great media coverage in support of the Festive Season Campaign and an opportunity to profile eight companies doing something a little different including Smergos – a bespoke wheelchair bags and accessories company, an industrial design studio, a biochemical fabric producer assisting in the fight against malaria, Empty Trips, a transport and logistics disruptor, a youth employment creator, a dairy operator from Soweto, one of Massmart’s import replacement suppliers and SA’s largest manufacturer of toilet seats and an innovative designer of school learner portable book bags which transform into a desk and chair.

Our weekly Business Report column continued to provoke comment and we were commissioned by the editor to produce a 1 000-word piece specifically focussing on KwaZulu-Natal membership, which gave us the opportunity to highlight a number of high value members in that province.

The quarter in review was also one in which to begin preparations for the 2019 Buy Local Summit & Expo and discussions were opened with media houses around partnerships for the event.

35

4.5.2 ) CLIP COUNT ANALYSIS

The clip count comparison illustrates the total number of media clippings for each media platform i.e. print, broadcast and online for the period under review (Oct – Dec 2018). Comparison is made with the same period in 2017, as well as with other quarters in the 2018/19 financial year.

C L I P C O U N T C O M P A R I S O NQ 3 : 2 0 1 7 / 1 8 & 2 0 1 8 / 1 9

C L I P C O U N T C O M P A R I S O N2 0 1 8 / 1 9 F I N A N C I A L Y E A R

35

89

20

34

84

102

0

20

40

60

80

100

120

OCT - DEC 2017 OCT - DEC 2018

NUMBER OF CLIPPINGS

PRINT BROADCAST ONLINE

75 8089

16

38 34

89

174

102

0

20

40

60

80

100

120

140

160

180

200

APR - JUN 2018 JUL - SEP 2018 OCT - DEC 2018

NUMBER OF CLIPPINGS

PRINT BROADCAST ONLINE

36

4.5.3) AVE/PR VALUE

The advertising value equivalency (AVE) is what editorial coverage would cost it were advertising space or time. PR/Editorial value is derived by multiplying the AVE by three. The total AVE value between October and December 2018 is R13.4 million and the PR/Editorial value for the same period is R40.2 million. The quarter in question is has also the highest editorial in this financial year to date.

A V E A N A L Y S I SQ 3 : 2 0 1 7 / 1 8 & 2 0 1 8 / 1 9

A V E A N A L Y S I S2 0 1 8 / 1 9 F I N A N C I A L Y E A R

6,9

13,4

20,9

40,2

0

5

10

15

20

25

30

35

40

45

OCT - DEC 2017 OCT - DEC 2018

RANDS IN MILLIONS

AVE PR/EDITORIAL

9,411,5

13,4

28,3

34,5

40,2

0

5

10

15

20

25

30

35

40

45

APR - JUN 2018 JUL - SEP 2018 OCT - DEC 2018

RANDS IN MILLIONS

AVE PR/EDITORIAL

37

4.5.4) Press Releases

The following press releases were issued between October and December 2018:

Number Date Release/Commission Title

1 01 October Entrepreneur magazineHow to…series No. 3

How to grow local procurement through your entire value chain

2 09 October Business Report Column Presidential Jobs Summit

3 16 October Business Report Column Impact of the rising cost of living on jobs

4 23 October Business Report Column Is price really king?

5 30 October Business Report Column Focus on the footwear sector

6 06 November Business Report Column Focus on the furniture sector

7 13 November Business Report Column Role of the Unions in increasing localisation

8 15 November Release Launch of Proudly SA’s Festive Season Campaign

9 20 November Business Report Column Festive season

10 27 November Business Report Column Illegal imports damage the economy

11 30 November Release (Northern Cape media only)

Proudly SA brings its show to town

12 02 December KZN Sunday Tribune supplement Proudly SA membership in KZN

13 04 December Business Report Column Pointing Fingers

14 10 December Release Proudly SA partners Spider-Man: Into the Spider-Verse to promote local products and services

15 11 December Business Report Column Focus on the automotive sector

38

4.5.5) Media Visits/Engagements

To build and strengthen good working relationships with the media – and to promote good media coverage of Proudly SA and its activities – the PR Manager and the PR officer had both formal and informal meetings, networking sessions and or interactions with members of the media and/or advertising officials from the following media platforms (among others).

4.5.6) Social Media

Below is a table which demonstrates Proudly South African’s follower growth on social media platforms

• YOU • Thobela FM• The Citizen• South Coast Herald • CliffCentral• SME South Africa• SABC News• Rekord• Radio 2000• Munghana Lonene

• Radio 786• Lesedi FM• IOL• Drum • Business Report• 5FM• BizCommunity• Motsweding FM• SA FM• Bush Radio

08 Oct 2018 07 Nov 2018 11 Dec 2018

Facebook likes 14 467 14 594 1 4736

Facebook followers 14 442 14 541 14 716

Instagram 2 422 2 491 2 723

LinkedIn 291 319 331

Twitter 157 577 158 687 158 662

39

4.6) Presentations

The Proudly SA CEO, Eustace Mashimbye made CEO-led presentations at various events and at various media interviews. The aim of these presentations is to create awareness and to educate audiences about the Proudly South African Campaign and what it stands for. Businesses/enterprises are also invited to support and join the Proudly South African Buy Local Campaign.

The CEO-led presentations included, among others, the following:

DATE EVENT VENUE

5-6 September 2018 Joint Proudly SA, Brand SA, Tourism SA Roadshow

Kwa Zulu Natal

15 September 2018 Edcon Fashion Show

19 September 2018 Proudly SA Creative Industry Forum

Melrose Arch

21 September 2018 FASA Workshop Sandton

3 October 2018 Inaugural Ministerial Round Table on Black Industrialists

Dri Campus

5 October 2018 Presidential Job Summit Midrand

11 October 2018 COSATU Western Cape Buy Local Summit

Western Cape

24 October 2018 Proudly SA Gauteng Business Forum

Sandton

26 October 2018 Universities Procurement Forum

Ekhuruleni

30 October 2018 The Foschini Group Buyers Forum

Western Cape

12 November 2018 Proudly SA Bloemfontein Business Forum

Bloemfontein

13 November 2018 Proudly SA Bloemfontein Public Sector

Bloemfontein

14 November 2018 Presentation to CGCSA Sandton

15 November 2018 Proudly SA Festive Season Launch

Rosebank

19 November 2018 Dept of Small Business EXCO Dti Campus

5 December 2018 Northern Cape Business Forum Kimberley

6 December 2018 Northern Cape Procurement Forum

Kimberley

10 December 2018 Economic Development Technical MinMEC Presentation

Dti Campus

20 December 2018 Buy Zimbabwe Awards/ Conference

Harare, Zimbabwe

40

4.7) Brand Management

During the quarter in review we continued the messaging ‘We buy local’. This message is designed to rally consumers and business alike to be proud of purchasing local products and services. The message is clear and straight to the point. We have carried this message using aesthetics and design cues to supplement the message of buying locally.

This message under pins and supports all the activities which we undertook, further entrenching the messaging of buying locally.

In this quarter we had our festive season messaging calling for consumers to buy local over December. The three main channels we used to promote the campaign included:

• Digital Marketing• Outdoor Billboards • Mall Advertising

41

Festive Season Campaign

Campaign “Festive Season Campaign” “We Buy Local this festive season”

Objectives Calls to Action: Promote buying local goods and services and to promote the Meet the Locals campaign as part of the overall marketing strategy

Elements Mall activations, mall advertising, street pole adverts, print, PR activities

Activity • Mall Advertising • Billboards • Digital Advertising

Period 15 November 2018 – 31 December 2018

Target Market South African consumers (the buying public)

Budget: R4 000 000 (incl. production costs)

F E S T I V E S E A S O N C A M P A I G N

Campaign Objectives

• Build Proudly SA brand and create brand awareness • Influencing purchasing decisions • Educate consumers on the importance of buying local • Promote the country of origin label to improve sales of local products.

43

OUT OF HOMEADVERTISING

MALL ADVERTISING

44

Yo u T u b e

Youtube

We ran a Youtube campaign showcasing our John Kani Advert this was inline with the festive season campaign to re-emphasis the buy local message and call to action .

The YouTube campaign ran for a total of 36 days and delivered 155 857 impressions and 55 973 views. Various techniques were used to optimize toward the best performing ad unit. In terms of views, the Autos & Vehicles in-market audience performed the best attainting 42% of all views.

47

P R O G R A M M AT I C S

50

S O C I A L M E D I A

Social Media

We ran the festive season campaign over the social media platform where we reached a targeted audience and continued to engage consumers to buy and support local products

• Overall the campaign performed well, it met its objectives. On Facebook the campaign accumulated 14 612 link clicks. It had significant peaks in the campaign during December despite this being a highly competitive period with many competitors vying for the same audience.

• The introduction of the video creative, boosted the campaigns deliver on Facebook however, it did not have the same effect on Twitter.

• On Facebook the best performing creative for the whole campaign was the 60 second video creative.

• On Twitter the campaign accumulated 887 701 impressions and 3 972 tweet engagements and the best performing creative was the single image.

• The majority of link clicks came from male users and those users aged 25-35.

51

F A C E B O O K

54

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mpa

ign

reac

hing

atle

ast2

0m

illio

nco

nsum

ers;

*Pro

mot

ion

ofEc

o-la

belle

dlo

cal

prod

ucts

inth

eag

ricul

tura

lse

ctor

in3

prov

ince

s

*Rea

ch 5

mill

ion

cons

umer

s du

ring

each

qua

rter

At le

ast o

ne p

rovi

nce

plan

ned

for

Q3

* In

exc

ess

of 5

mill

ion

cons

umer

s re

ache

d th

roug

h th

e Fe

stiv

e Se

ason

Cam

paig

n (b

illbo

ards

, mal

l adv

ertis

ing

and

tele

visi

on in

terv

iew

s ar

ound

the

coun

try

–du

ring

and

afte

r the

la

unch

)

*Par

ticip

atio

n in

1(o

ne)

inte

rnat

iona

l UNO

PS e

vent

(E

xhib

ition

& p

rese

ntat

ion)

Incr

ease

pro

cure

men

t of l

ocal

pr

oduc

ts a

nd s

ervi

ces

in th

e pu

blic

sec

tor t

hrou

gh in

crea

sed

enga

gem

ents

with

the

publ

ic

sect

or.

Educ

atio

nal r

oads

how

sIn

crea

se b

uy-in

and

sup

port

for l

ocal

pro

cure

men

t by

the

publ

ic s

ecto

r (al

l sta

te o

rgan

s) th

roug

h:

*Pre

sent

atio

n to

SOE

PF (S

tate

Ow

ned

Ente

rpris

es

Proc

urem

ent F

orum

) per

ann

um

*Par

tner

ship

with

the

dti,

EDD,

Nat

iona

l Tre

asur

y an

d pr

ovin

cial

gov

ernm

ent d

epar

tmen

ts o

n ed

ucat

ion

of

proc

urem

ent o

ffici

als

on th

e im

plem

enta

tion

of th

e pu

blic

pro

cure

men

t reg

ulat

ions

in s

uppo

rt o

f loc

al

proc

urem

ent f

or d

esig

nate

d se

ctor

s in

nat

iona

l, pr

ovin

cial

& lo

cal g

over

nmen

t dep

artm

ents

and

to

mon

itor p

rocu

rem

ent w

ithin

the

publ

ic s

ecto

r

*Nat

iona

l, pr

ovin

cial

and

loca

l dep

artm

ents

vis

its –

enga

gem

ent w

ith p

rocu

rem

ent o

ffice

rs

*Pre

sent

atio

n at

SAL

GA

*1-2

x d

ay B

uy L

ocal

Sum

mit

–fo

cusi

ng o

n al

l sta

te

orga

ns a

nd b

usin

ess

proc

urem

ent

*1-2

x D

ay B

uy L

ocal

Exp

o –

of a

ll SA

com

pani

es

focu

sing

on

the

prio

rity

Sect

ors

-SCC

–“M

ade

in S

A”

Expo

*At l

east

1 p

rese

ntat

ion

to S

OEPF

pe

r ann

um

*Pr

esen

tatio

nat

1go

vern

men

t’sSC

Mfo

rum

with

Head

sof

proc

urem

ent

from

vario

usna

tiona

lgo

vern

men

tdep

artm

ents

*Pr

ovin

cial

Pub

lic S

ecto

r for

ums

in

at le

ast 9

pro

vinc

es

*Pre

sent

atio

nto

atle

ast

1xSA

LGA

mem

ber’s

foru

man

d/or

even

t;

*At l

east

1 s

umm

it to

be

held

per

an

num

*At l

east

1 B

uy L

ocal

Exp

o he

ld p

er

annu

m

*One

(1) a

ctiv

ity p

lann

ed fo

r Q3

*One

(1) p

rese

ntat

ion

at

gove

rnm

ent S

CM fo

rum

pla

nned

fo

r Q3

*3

Prov

inci

al P

ublic

Sec

tor f

orum

pl

anne

d fo

r Q3

*One

(1) p

rese

ntat

ion

plan

ned

for

Q3 *Buy

Loc

al S

umm

it pl

anne

d fo

r Q4

*Buy

Loc

al E

xpo

plan

ned

for Q

4

*Pro

udly

SA

host

ed a

SOE

PF

mee

ting

at it

s pr

emis

es

*Par

tner

ship

agr

eem

ent w

as

conc

lude

d w

ith N

atio

nal

Trea

sury

’s C

PO’s

offi

ce

*Blo

emfo

ntei

n, K

imbe

rley.

*SAL

GA a

nd it

s m

embe

rs w

ere

repr

esen

ted

at th

e Ki

mbe

rley

and

Bloe

mfo

ntei

n pu

blic

sec

tor

foru

ms

*N/A

*N/A

Pres

enta

tion

will

take

pla

ce

in Q

4 at

NT

Foru

m fo

r SCM

of

ficia

ls

East

ern

Cape

foru

m

post

pone

d to

Q4

due

to

cong

este

d pr

ogra

mm

e in

Q3.

An

nual

targ

et w

ill b

e ac

hiev

ed

5959

Stra

tegi

c ob

ject

ive/

outc

ome

Outp

utPe

rfor

man

ce M

easu

re o

r Ind

icat

orAn

nual

Tar

get

Quar

terl

y M

ilest

one

(Q3

targ

et)

Actu

al A

chie

vem

ent (

Q3)

Reas

on fo

r Var

ianc

e

Incr

ease

pro

cure

men

t of l

ocal

pr

oduc

ts a

nd s

ervi

ces

in th

e pr

ivat

e se

ctor

thro

ugh

enga

gem

ents

with

Bus

ines

s (in

cl.

BUSA

, BBC

and

BLS

A)

Natio

nal E

duca

tiona

l roa

d sh

ows:

Incr

ease

d bu

y-in

and

sup

port

for l

ocal

pro

cure

men

t by

the

priv

ate

sect

or. S

igni

ng o

f Par

tner

ship

ag

reem

ents

/ple

dges

with

BLS

A, B

BC a

nd B

USA

to

com

mit

to b

uyin

g lo

cally

pro

duce

d pr

oduc

ts a

nd

serv

ices

thro

ugh:

*Pre

sent

atio

ns to

BUS

A, B

BC a

nd B

LSA

mem

bers

plu

s Bu

sine

ss C

ham

bers

;

*Loc

al P

rocu

rem

ent P

artn

ersh

ips

with

larg

e re

taile

rs

and

/or m

anuf

actu

rers

;

*1-2

x D

ay B

uy L

ocal

Sum

mit

–fo

cusi

ng o

n al

l sta

te

orga

ns a

nd b

usin

ess

proc

urem

ent

1-2

x da

y Bu

y Lo

cal E

xpo

–of

all

SA c

ompa

nies

focu

sing

on

the

prio

rity

Sect

ors

-SCC

–“M

ade

in S

A” E

xpo

*Sec

tor S

peci

fic W

orks

hops

*Bus

ines

s Fo

rum

s w

ith d

tian

d ot

her s

trat

egic

par

tner

s

*Pro

udly

SA

Even

ts/

Exhi

bitio

ns/

Expo

’s/

Villa

ges

at

trad

e ex

pos

*SA

Prem

ier B

usin

ess

Awar

ds a

imed

at r

ewar

ding

SA

com

pani

es th

at a

chie

ve h

igh

leve

ls o

f exc

elle

nce

in th

e co

urse

of d

oing

bus

ines

s

*1 p

rese

ntat

ion

each

to B

USA,

BBC

an

d BL

SA p

er a

nnum

;

*Pre

sent

atio

ns to

at l

east

2 b

usin

ess

cham

bers

and

/or a

ssoc

iatio

ns p

er

annu

m

*Par

tner

ship

s w

ith a

t lea

st 2

maj

or

reta

ilers

/man

ufac

ture

rs p

er a

nnum

;

*At l

east

1 s

umm

it to

be

held

per

an

num

;

*At l

east

1 B

uy L

ocal

Exp

o he

ld p

er

annu

m;

*3 x

sec

tor s

peci

fic fo

rum

s pe

r an

num

*9 b

usin

ess

foru

ms

per a

nnum

* Pa

rtic

ipat

ion

in a

t lea

st 8

maj

or

trad

e ex

pos

per a

nnum

* Co

-hos

ting

1X a

nnua

l SA

Prem

ier

Busi

ness

Aw

ards

eve

nt (a

s a

part

ner

to th

e dt

i)

*1 p

rese

ntat

ion

plan

ned

to a

ny o

f th

e ta

rget

ed o

rgan

izat

ions

for Q

3

*1 p

rese

ntat

ion

plan

ned

for Q

3

*1 p

artn

ersh

ip p

lann

ed fo

r Q3

*Buy

Loc

al S

umm

it sc

hedu

led

for

Q4 (M

arch

‘19)

*Buy

Loc

al E

xpo

sche

dule

d fo

r Q4

(Mar

ch ‘1

9)

*1 s

ecto

r spe

cific

foru

m s

ched

uled

fo

r Q3

*3 b

usin

ess

foru

ms

sche

dule

d fo

r Q3 *2

trad

e ex

pos

sche

dule

d pe

r qu

arte

r

*Aw

ards

sch

edul

ed fo

r Q3

*Met

with

bot

h BU

SA C

EO a

nd

agre

ed o

n w

orki

ng a

rran

gem

ent.

Draf

t par

tner

ship

agr

eem

ent

sent

to B

BC

*1 p

rese

ntat

ion

at th

e So

uth

Coas

t Cha

mbe

r of C

omm

erce

*Par

tner

ship

con

clud

ed w

ith

The

Fosc

hini

Gro

up

*N/A

*N/A

*Med

ical

Dev

ices

foru

m

post

pone

d to

Q4

*Gau

teng

, Blo

emfo

ntei

n,

Nort

hern

Cap

e fo

rum

s he

ld

*Con

sum

er G

oods

Cou

ncil

of S

A su

mm

it, 2

x M

anuf

actu

ring

Inda

bas

(CT

& P

E)

*Orig

inal

ly s

ched

uled

for Q

3 bu

t di

d no

t tak

e pl

ace

Pres

enta

tion

will

take

pla

ce

with

spe

cific

iden

tifie

d B

USA

mem

ber a

ssoc

iatio

ns in

Q4

*For

um p

ostp

oned

to a

llow

fo

r mor

e ex

tens

ive

indu

stry

pa

rtic

ipat

ion

This

was

resc

hedu

led

to ta

ke

plac

e du

ring

the

2019

Buy

Lo

cal S

umm

it &

Exp

o in

Q4

6060

Stra

tegi

c ob

ject

ive/

outc

ome

Outp

utPe

rfor

man

ce M

easu

re o

r Ind

icat

orAn

nual

Tar

get

Quar

terl

y M

ilest

one

(Q3

targ

et)

Actu

al A

chie

vem

ent (

Q3)

Reas

on fo

r Var

ianc

e

Bran

d M

anag

emen

tBr

and

rese

arch

-De

velo

pmen

t of

a sc

ient

ific

basi

s fo

r loc

al

proc

urem

ent

Exis

tenc

e of

an

Econ

omic

Impa

ct S

tudy

to c

ontr

ibut

e to

th

e in

crea

se in

the

upta

ke o

f loc

al p

rodu

cts

and

serv

ices

and

pro

cure

men

t by

the

publ

ic s

ecto

r, pr

ivat

e se

ctor

and

con

sum

ers;

Bi-a

nnua

l res

earc

h, q

ualit

ativ

e an

d qu

antit

ativ

e re

sear

ch re

sults

as

wel

l as

even

t or c

ampa

ign

dips

tick

surv

eys

outc

omes

;

*Bra

nd o

r Con

sum

er R

esea

rch

to b

e un

dert

aken

at l

east

onc

e pe

r ann

um

*At l

east

12

x Di

pstic

k su

rvey

s pe

r an

num

con

duct

ed a

t Pro

udly

SA

even

ts a

nd e

xhib

ition

s/ c

onsu

mer

ou

trea

ch c

ampa

igns

and

via

the

web

site

*A c

onsu

mer

rese

arch

stu

dy

plan

ned

for Q

3

*At l

east

4 d

ipst

ick

surv

eys

plan

ned

for Q

3

*The

Mas

smar

t res

earc

h st

udy

alre

ady

took

pla

ce in

Q1

*5 s

urve

ys d

one

-Gau

teng

, Bl

oem

font

ein,

Nor

ther

n Ca

pe

busi

ness

foru

ms

as w

ell a

s Fr

ee

Stat

e an

d No

rthe

rn C

ape

publ

ic

sect

or fo

rum

s.

Bran

d Co

mpl

ianc

e an

d IP

.Ef

fect

ive

man

agem

ent o

f Pro

udly

SA

inte

llect

ual p

rope

rty

Perc

enta

ge o

f suc

cess

fully

exe

cute

d le

tter

s of

dem

and

and

cour

t act

ions

aga

inst

iden

tifie

d tr

ansg

ress

ors

*Act

ion/

lett

ers

of d

eman

d to

all

(100

%) i

rreg

ular

use

rs o

f the

Pro

udly

SA

logo

iden

tifie

d

*Ann

ual c

ompl

ianc

e re

view

of a

ll m

embe

rs

*Wee

kly

mon

itorin

g w

ith A

dam

s &

Ad

ams

of c

ompa

nies

that

are

usi

ng

the

Phra

se a

nd lo

go il

lega

lly

*100

% o

f all

iden

tifie

d ill

egal

use

rs

sent

lett

ers

*100

% (A

ll) m

embe

rs c

heck

ed fo

r co

mpl

ianc

e

*Mon

itorin

g of

the

use

of lo

go a

nd

phra

se d

one

illeg

ally

–10

0%

cont

act w

ith a

ll id

entif

ied

com

pani

es

*All

iden

tifie

d irr

egul

ar u

sers

w

ere

sent

lett

ers

–10

0%

*All

mem

bers

con

tact

ed a

s pa

rt

of th

e ne

w a

nd re

new

als

mem

bers

hip

com

plia

nce

proc

ess

–10

0%

*Mon

itorin

g do

ne in

tern

ally

and

by

Ada

ms

and

Adam

s -1

00%

Part

ners

hip

with

enfo

rcem

ent

agen

cies

*Gro

win

g th

e da

taba

se o

f Sou

th

Afric

an s

uppl

ier p

rodu

cts

and

serv

ices

for l

ocal

pro

cure

men

t

*Offi

cial

Dat

abas

e fo

r Loc

al

Prod

ucts

and

Ser

vice

s to

be

utili

zed

by a

ll So

uth

Afric

ans

and

all G

over

nmen

t ent

ities

whe

n pr

ocur

ing

desi

gnat

ed a

nd lo

cal

prod

ucts

pro

curin

g de

sign

ated

an

d lo

cal p

rodu

cts .

*To

prev

ent i

llega

l im

port

s, c

ount

erfe

it pr

oduc

ts,

dum

ping

of u

nsaf

e pr

oduc

ts a

nd u

nder

invo

iced

pr

oduc

ts th

roug

h Be

low

and

Abo

ve th

e lin

e An

ti -

pira

cy a

nd il

licit

trad

ing

cam

paig

ns re

achi

ng 2

mill

ion

peop

le p

er a

nnum

;

*Pro

mot

ion

of D

atab

ase

-NAT

IONA

L CA

MPA

IGN

to g

row

th

e nu

mbe

r of c

ompa

nies

regi

ster

ing

on th

e da

taba

se.

*Cal

l to

Actio

n ca

mpa

igns

(Abo

ve a

nd B

elow

the

line

cam

paig

ns) r

each

ing

busi

ness

es.

Part

icip

atio

n in

the

Nedl

acTa

sk

team

on

Anti-

pira

cy a

t lea

st tw

ice

per a

nnum

*500

new

pro

duct

s an

d/or

ser

vice

s re

gist

ered

*Pro

mot

ion

of d

atab

ase

to a

t lea

st 9

pr

ovin

cial

pub

lic-s

ecto

r for

ums

1 ac

tivity

pla

nned

for Q

3

*150

new

pro

duct

s an

d/or

ser

vice

s re

gist

ered

for Q

3

*3 p

rovi

ncia

l pub

lic-s

ecto

r for

ums

plan

ned

for Q

3

*2 m

eetin

gs a

tten

ded

with

the

Nedl

acTa

sk te

am

*264

new

pro

duct

s an

d/or

se

rvic

es re

gist

ered

* Bl

oem

font

ein,

Kim

berle

y*E

aste

rn C

ape

foru

m

post

pone

d to

Q4

due

to

cong

este

d pr

ogra

mm

e in

Q3.

An

nual

targ

et w

ill b

e ac

hiev

ed

6161

Stra

tegi

c ob

ject

ive/

outc

ome

Outp

utPe

rfor

man

ce M

easu

re o

r Ind

icat

orAn

nual

Tar

get

Quar

terl

y M

ilest

one

(Q3

targ

et)

Actu

al A

chie

vem

ent (

Q3)

Reas

on fo

r Var

ianc

e

*Pro

mot

ion

of d

atab

ase

to b

oth

the

publ

ic a

nd p

rivat

e se

ctor

thro

ugh

wor

ksho

ps /

regu

lar c

omm

uniq

ue (t

his

will

incl

ude

the

prom

otio

n of

oth

er S

A M

ade

Prod

ucts

as

per

the

desi

gnat

ed s

ecto

rs).

Mea

sure

d in

term

s of

ho

w m

any

publ

ic in

stitu

tions

reac

hed

that

are

usi

ng

the

data

base

.

*Pro

mot

ion

of d

atab

ase

to a

t lea

st 9

pr

ovin

cial

bus

ines

s fo

rum

s

*Pro

mot

ion

of d

atab

ase

to a

t lea

st 2

bu

sine

ss a

ssoc

iatio

ns o

r cha

mbe

rs

3 pr

ovin

cial

bus

ines

s fo

rum

s pl

anne

d fo

r Q3

1 w

orks

hop

with

a b

usin

ess

asso

ciat

ion

or c

ham

ber p

lann

ed

for Q

3

* Bl

oem

font

ein,

Kim

berle

y,

Gaut

eng

*1 p

rese

ntat

ion

at th

e So

uth

Coas

t Cha

mbe

r of C

omm

erce

an

d 1

at th

e Co

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urin

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kly.

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Fina

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agem

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agem

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PFM

A A

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anag

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epor

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PRO

GR

ESS

ON

AC

TIO

NS

IN T

HE

RIS

K R

EGIS

TER

As a

t 31

Dece

mbe

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PRO

GR

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AG

AIN

ST P

OST

-AU

DIT

IMPL

EMEN

TATI

ON

PLA

N

8 No.

Find

ing

Corr

ectiv

e Ac

tion

(Pla

n)St

atus

1.Co

mpl

eten

ess

of o

pera

ting

expe

nse

as in

voic

e no

t rec

orde

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gene

ral l

edge

rAF

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ere

adju

sted

acc

ordi

ngly

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anag

emen

t will

ens

ure

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all

invo

ices

are

reco

rded

in th

e ac

coun

ting

reco

rds

on th

e ac

crua

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is

Com

plet

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voic

ere

cord

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ount

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ere

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sted

acc

ordi

ngly

Man

agem

ent w

ill e

nsur

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at a

ll tr

ansa

ctio

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re re

cord

ed in

the

corr

ect f

inan

cial

per

iod,

and

that

ade

quat

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tern

al c

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ol

proc

esse

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e pu

t in

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sact

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Com

plet

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pplie

r inv

oice

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oudl

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ount

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sign

ed tr

ade

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ange

agr

eem

ent

AFS

wer

ead

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edac

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anag

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men

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plet

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ays

used

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ccru

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anag

emen

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onci

liatio

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med

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wee

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ave

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dule

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rms

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the

accr

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latio

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acc

urat

e an

d co

mpl

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Com

plet

ed

5.Re

asse

ssm

ent o

f use

ful l

ives

inco

rrec

tly c

alcu

late

dAF

S w

ere

adju

sted

acc

ordi

ngly

Com

plet

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6.As

sets

not

tagg

ed o

n th

e fix

ed a

sset

regi

ster

All i

dent

ifiab

le it

ems

will

be

tagg

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Com

plet

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7.M

inut

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f mee

ting

not s

igne

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the

resp

ectiv

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airp

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nsM

inut

es h

ave

sinc

e be

en s

igne

d Th

e Bo

ard

secr

etar

iat w

ill e

nsur

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at a

ll m

inut

es o

f mee

ting

are

sign

ed b

y th

e re

spec

tive

chai

rper

sons

Com

plet

ed

8.Du

plic

ate

invo

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reco

rded

in th

e ge

nera

l led

ger

AFS

wer

e ad

just

ed a

ccor

ding

lyCo

mpl

eted

9.In

corr

ect a

ging

of t

he c

redi

tors

bal

ance

s as

pay

men

ts a

re in

corr

ectly

al

loca

ted

This

is S

AP p

robl

em a

nd th

e SA

P se

rvic

e pr

ovid

er h

as b

een

advi

sed

of th

e pr

oble

m a

nd th

ey a

re in

the

proc

ess

of re

solv

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the

prob

lem

In p

rogr

ess

10.

Bala

nce

as p

er th

e cr

edito

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tate

men

ts d

oes

not a

gree

to th

e ag

e an

alys

isAd

ditio

nal i

nfor

mat

ion

was

pro

vide

d to

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audi

tors

to re

solv

e th

is fi

ndin

gM

anag

emen

t will

ens

ure

that

cre

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econ

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tions

are

pe

rfor

med

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gula

r bas

is a

nd a

ll va

rianc

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re im

med

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ly

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Com

plet

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Inco

rrec

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ortio

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t of r

even

ue re

ceiv

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the

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ear a

nd

reve

nue

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dvan

ceAF

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ere

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sted

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roce

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audi

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plet

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No S

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05,

745,

600

1,345

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31%

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mil

was

bud

gete

d fo

r the

Fe

stiv

e Se

ason

Cam

paig

n bu

t R5

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il w

as re

ques

ted

for

13,70

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43,5

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(47%

)47

,639

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34,14

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(13,

491,

329)

EXPE

NDIT

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nd S

taff

ing

cost

s5,

937,2

155,

948,

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(10,

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%)

Tim

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f cer

tain

cos

t el

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ts20

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15,9

63,8

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)

Adm

inis

trat

ive

cost

s1,5

72,16

11,2

86,79

328

5,36

818

%Ti

min

g na

ture

of c

erta

in c

ost

elem

ents

6,26

1,143

3,77

8,21

0(2

,482

,933

)

Mem

bers

hip

cost

s11

4,44

331

,677

82,76

672

%Co

st c

uttin

g ex

erci

se

unde

rtak

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7,773

107,5

92(3

50,1

81)

Mar

ketin

g co

sts

2,56

7,500

2,75

9,39

1(1

91,8

91)

(7%

)Ti

min

g na

ture

of c

erta

in c

ost

elem

ents

18,73

2,42

68,

358,

010

(10,

374,

416)

Capi

tal E

xpen

ditu

re &

IT16

6,95

014

3,62

923

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14%

Tim

ing

natu

re o

f cer

tain

cos

t el

emen

ts1,2

23,8

0046

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63,6

70)

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l Exp

endi

ture

10,3

58,2

6910

,169

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188,

769

2%47

,639

,000

28,6

67,8

29(1

8,97

1,17

1)

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