smart and solar airports what can we learn from this? seminars and presentations/industry...

Smart and solar airports – What can we learn from

this? Mr Andre Vermeulen Group Executive for Airports

Management ACSA

12 October 2016

Aviation Industry Growth Conference

Andre Vermeulen – Group Executive: Airports Management

Smart Airports - Meeting increasing expectations of digital and mobile

consumers and what we can learn from this?

3

Agenda

4

CONTENTS Page

1. Company Overview 5

2. IATA Guidance and SITA Survey Statistics 8

2. IT Strategy Overview 12

3. Fast Track Projects

3.1 Self Service Check-In

3.2 Bags Ready to Go/ Self Printed Bag Tags

3.3 Self Boarding

3.4 Document Check

3.5 Flight Reschedule

3.6 Bag Recovery

15

Company Overview

1

Our organization – a world leading airport

business of airports

6

OUR

MISSION

To develop and manage world-class

airport businesses for the benefit of all

stakeholders.

OUR

VISION

To be a world leading airport business

OUR

VISION STATEMENT

To be the most sought after partner in

the world for the provision of

sustainable airport management

solutions by 2025

OUR

STRATEGIC PROPOSITION

To build an efficient customer focussed

business

OUR MANDATE

Governed by Airports Company Act No 44 of 1993. To undertake the maintenance,

management, control and operation of any airport, any part of any airport or any

facility or service at any airport normally related to the functioning of an airport.

OUR COMMITMENT TO OUR STAKEHOLDERS

To have purposeful engagements with all our stakeholders towards having agreed

scope of engagement and delivery of expected outcomes

OUR PLEDGE TO OUR CUSTOMER

To drive a culture of excellence around customer service and communication.

Network of airports

7

35.6 million (passengers p.a.)

38 million (passengers p.a.)

Brazil, Sao Paulo

(Guarulhos International

Airport)

India, Mumbai

(Chattrapati Shivaji

International Airport)

36 million (passengers p.a.)

http://www.acsa.co.za/home.asp?pid=228









/upload.wikimedia.org/wikipedia/commons/0/04/Guarulhos5.jpg

IATA Guidance and SITA Statistics

2

IATA Guidance

9

SITA Statistics

10

Taking Control

72% of all airports plan to check-in more than half of passengers through a kiosk in 2017

72% of all airports will

have implemented unassisted bag drops by 2018

Always Connected

92% of passengers would like to receive notification on their smart phones in case of disruptions

70% of passengers want to be connected from gate to gate

Rapid Boarding

63% of passengers would prefer a self-boarding gate to board the aircraft rather than the current procedure

SITA Statistics

11

Speedy Immigration

69% of passengers would like an improvement in border control procedures

Locating Baggage

Lost or delayed luggage is a major source of frustration for passengers. 75% of passengers would like to see an improvement in baggage collection at destination

Managing Disruption

Predictive analysis, real time information, business intelligence, and proactive control over operations help prevent and better manage disruptions

IT Strategy

3

Project Ndizani

13

Project Ndizani - a transformation strategy that will enable ACSA to become a world leading digital airport business

ACSA’s Digital Strategy

14

Fast Travel Projects

4

Fast Travel Project

16

Fast Travel Project

17

1. Self Service Check In

Self Service Check-In Overview

36% of all ACSA passengers

departing from our airports

use a self-service option.

18

• Day 2

SCENARIO

The Airline must have implemented, and offered, at least

one of the following channels to the passenger:-

• Kiosk Check-In

• Web Check-In

• Mobile Check-In

Airlines Self-service % breakdown

20

Airline Mobile Check-

In %

Web Check-In

%

Cuss Check-

In %

Total Self

Service %

Traditional

Check-in %

Cathay Pacific .11% 6.41% 15.28% 21% 78%

Cemair 5% 20% 0% 25% 75%

Delta 0% 26.49% 8.09% 34.58% 65.42%

Mango 10% 21% 9% 40% 60%

SAA (Include SA

Express and Airlink)

6.09% 26.11% 10.57% 42.77% 57.23%

Safair 32.76% Included in the

Mobile figures 11.97% 44.73% 55.27%

Virgin Atlantic 46.53% Included in the

Mobile figures 0% 46.53% 53.47%

2. Bags Ready to Go

Bags Ready to Go Overview

• Day 2 SCENARIO

Passengers print and apply their bag tags

themselves and offer a dedicated touch point for

baggage acceptance:

• 74% of airlines will offer bag drop by 2018;

• 60% increase of terminal capacity;

• 40% reduction in operational costs; (SITA)

• Day 2

• Regulations regarding security checks

• Communication, education of passengers is critical

• Feedback from passengers during the trial phase is

critical

• Timelines dependent on connectivity and software

testing (Baggage system/Bag drop units/User

application and Amadeus)

RISKS

• Day 2 SCOPE

Airports Company South

Africa is offering the following

options:

• 1 ½ STEP, with possible

2 step with the new

CUSS implementation

(pending approvals)

21

Self Printed Bag Tags

Self Printed Bag Tags Overview

28

• Day 2 SCENARIO

Allow the passenger to print their boarding pass at

home and administer at airport

• March 2016: Principle Approval: Trial already with

two airlines

• June 2016: Trial with the kiosk printed tags,

individual airline applications, based

on approval;

• July 2016: Project launched as it doesn’t require

infrastructure

The SITA Baggage report 2015, reported that 69% of airports plan to offer bag-tag

printing at their self-service kiosks and 82% of airlines plan to offer bag-tag printing

at kiosks in the next year

33

Air France / KLM

6

Swiss Air

35

Qatar Lufthansa (not yet applied to ACSA)

3. Self Boarding

Self Boarding Overview

38

• Day 2 SCENARIO

Allow passenger to self-scan their boarding token at

the gate to gain entry to the aircraft in a controlled

manner.

44% of passengers travelling globally are offered self-boarding

• Day 2

• Accuracy and placement of ID verification process

• Boarding gates may require further infrastructure

modification

• Management of on-the-bay disruptions and pax

disembarkation

RISKS

4. Document Check

Document Check Overview

• Day 2 SCENARIO

Offer the possibility for passengers to self-scan their

travel documents and verify automatically that the

travel document data are compliant with the

destination or transit requirements.

• Day 2

• Longer processing time at CUSS.

• Enhancements to airline kiosk application required

RISKS

• Day 2 CURRENT

Cuss can do a passport

check. No other documents

can be checked either by

input or scanning

41

5. Flight Reschedule

Flight Reschedule - Project

45

The latest IATA Global Passenger Survey indicated that 39% of air travellers

experience flight cancellation and 60% of air travellers experience long flight delays

• Day 2 SCENARIO

The flight re-booking kiosk offers the possibility for

passengers to be pro-actively re-booked and to

obtain new booking options of boarding via a self-

service channel.

Kiosk can also be used for:

• Buy meal vouchers for the flight

• Book car hire and hotel

• Pay for excess baggage or upgrade

• Day 2

• It is a web interface to the airline and software

development is required by the airline

• Airline support

• Payment is via credit card only via means of a manual

entry

RISKS

6. Bag Recovery

Bag Recovery

48

23% of passengers globally are offered a self-service bag recovery

• Day 2 SCENARIO

Proactive communication with passengers that

allows them to avoid waiting at the baggage carousel

if their bags is not there. Allows passengers to report

a missing bag utilising a self-service channel instead

of waiting in line at a baggage service counter

• Day 2

• Not all airlines use World Tracer.

• Some airlines are worried about increase in number of

files opened.

RISKS

Bag Recovery

49

What is new / coming

49 Automated Border Control Systems Biometric solution for passenger identification

What is new / coming

49

THANK YOU Airports Company South Africa – Embracing Forward Thinking

www.airports.co.za

Accelerating aerospace manufacturing technology – An African perspective

Mr Victor Xaba Deputy CEO –Denel Aerostructures

Do we embrace innovation in aviation – if not, what are

the challenges? Ms Pfumelani Mbulayeni

Head of Quality and SHE Denel Aviation

DENEL GROUP

45

DENEL AVIATION

P MBULAYENI

12 OCTOBER 2016

DO WE EMBRACE INNOVATION IN AVIATION?

DENEL GROUP

46

PART ONE: BACKGROUND

INNOVATION DEFINED

INNOVATION IN AVIATION

PART TWO: SOUTH AFRICAN SITUATION

DENEL CASE STUDY

PART THREE: IMPROVEMENT

OPPORTUNITIES

CONTENTS

DENEL GROUP

47

• A new idea, device, or method

• The act or process of introducing new

ideas, devices, or methods (Merriam-Webster dictionary)

INNOVATION

DENEL GROUP

48

INNOVATION IN AVIATION

• GPS

• Composite Materials

• CAT Scans

• Insulation

• Ear Thermometer

• Smoke Detectors

• Solar Energy

• Invisible Braces for teeth

• Memory Mattress……etc.

DENEL GROUP

49

SOUTH AFRICAN AVIATION INNOVATION

LANDSCAPE

SARA

PROWLER:

Rotary Wing UAV

DENEL GROUP

50

SOUTH AFRICAN AVIATION INNOVATION

LANDSCAPE

A400M Programme:

• Composite Manufacturing

• Special Processes

DENEL GROUP

51

CHALLENGES

• S.A. Civil Aviation Industry is still heavily maintenance

based, low design activity, almost non manufacturing

activity.

• Design and Flight Testing restrictions w.r.t. Regulatory

Bureaucracy (Part 21, Part 147, Part 148)

• Airworthiness compliance standards cannot be met with

current infrastructure

• Human Capacity to support development programmes

• 1% contributor to STC embodiment.

DENEL GROUP

52

THE CHALLENGE!

• Aviation Growth depends on Design, Development and

Manufacturing

• ADO Status needs to be encouraged and incentivised

(Review of current Part 147)

• Establishment of a SACAA Sponsored test facilities (i.e. DO

160) attuned.

• Broader participation in R&D for Civil Applications (DTI,

DoT, Universities, SACAA, Black Industrialists, etc.)

• SACAA & MAB Collaboration

DENEL GROUP

53

THE CHALLENGE: Experimental Aircraft programme

Recreational

Experimental

DENEL GROUP

54

OPPORTUNITIES!

• Opportunities to pursue innovation in safety

technology and implementing across the continent

• Targeted grassroots STEM education and

exposure, hold innovation workshops (JAAP)

DENEL GROUP

55

THANK YOU

New BBBEE codes – What does this mean for aviation

business? Mr Shaun Gibson

Senior Verification Analyst INFORCOMM

BROAD-BASED BLACK ECONOMIC

EMPOWERMENT

AMENDED B-BBEE CODE

TRANSPORT SECTOR CODE

AVIATION INDUSTRY

SUB-SECTOR

AVIATION INDUSTRY B-BBEE CODE

VISION

THE STAKEHOLDERS OF THE AVIATION INDUSTRY RECOGNISE THAT IT IS A CONSTITUTIONAL AND ECONOMIC IMPERATIVE TO SECURE A PROSPEROUS FUTURE FOR ALL OF SOUTH AFRICA’S CITIZENS IN ORDER TO RECOGNISE THE FULL ECONOMIC POTENTIAL OF THE COUNTRY

GOVERNMENT AND INDUSTRY COMMIT TO ACTIVELY PROMOTE A TRANSFORMED, VIBRANT AND GLOBALLY COMPETITIVE SECTOR THAT REFLECTS THE DEMOGRAPHICS OF SOUTH AFRICA AND TO CONTRIBUTE TO THE ESTABLISHMENT OF AN EQUITABLE SOCIETY, BY PROVIDING ACCESSIBLE SERVICES TO ALL, PARTICULARLY FOR BLACK PEOPLE, AND THEIR PARTICIPATION IN THE INDUSTRY

Inforcomm (Pty) Ltd: A Sanas accredited BEE Verification Agency, No. BVA034


PRINCIPLES

THE AVIATION INDUSTRY CODE

HAS NO DEVIATIONS FROM THE DTI AMENDED B-BBEE CODE DEFINITION AND PRINCIPLES; AND

IS SUFFICIENTLY COMPARABLE TO THE AMENDED CODE IN THE ORDER OF ELEMENTS, TARGETS AND WEIGHTINGS



OBJECTIVES

CREATE BLACK ECONOMIC EMPOWERMENT THROUGH OWNERSHIP, MANAGEMENT CONTROL AND SUPPLIER DEVELOPMENT WITHIN THE INDUSTRY

ENSURE ENTRY OF BLACK WOMEN, BLACK YOUTHS AND BLACK PEOPLE LIVING IN RURAL AREAS AT ALL LEVELS OF THE INDUSTRY



SCOPE AND APPLICATION

AIRLINE OPERATIONS INCLUDING

PASSENGER, FREIGHT, CHARTER, &

GENERAL AVIATION

AIRCRAFT MAINTENANCE, INCLUDING

ENGINE AND COMPONENT OVERHAULS AND

SPARE PARTS

AIRLINE SERVICE PROVIDERS




RAMP HANDLERS AND HANDLING AGENTS

AIRSIDE OPERATORS

PRIVATELY-OWNED PILOT TRAINING

INSTITUTIONS

PRIVATELY-OWNED AIRPORTS

AIRPORT FACILITIES AND SERVICES

AIR NAVIGATION AND TECHNICAL SERVICE

PROVIDERS

GENERAL SERVICES SUCH AS CATERING

AND RETAIL SERVICES




THE EMPOWERMENT REQUIREMENTS

FOR NON-SOUTH AFRICAN DOMICILED

AIRLINES DIFFER FROM THOSE FOR

THE AVIATION INDUSTRY SECTOR IN

GENERAL, AND ARE DEALT WITH IN

THE FOREIGN-OWNED AIRLINES B-

BBEE SCORECARD (WHICH ALLOWS

FOR AN EQUITY EQUIVALENT

PROGRAMME) Inforcomm (Pty) Ltd: A Sanas accredited BEE Verification Agency, No. BVA034

DEFINITION OF A BLACK PERSON

AFRICAN, INDIAN, COLOURED,

SOUTH AFRICAN CITIZEN

• BY BIRTH; OR

• BY DESCENT; OR

• BY NATURALISATION

THAT OCCURRED PRIOR TO

27 APRIL 1994



TURNOVER THRESHOLD OF EME

AN EXEMPTED MICRO-ENTERPRISE (EME) IS BUSINESS

WITH AN ANNUAL TURNOVER OF R 5 MILLION OR LESS

(< R10 MILLION FOR AIRLINE OPERATORS)

IF LESS THAN 51% BLACK-OWNED,

EME GRANTED LEVEL 4 B-BBEE CONTRIBUTOR STATUS

IF 51 % OR MORE BLACK-OWNED,


IF 100 % BLACK OWNED,




QUALIFICATION AS EME

AN EME ONLY REQUIRES A SWORN AFFIDAVIT ANNUALLY

THE AFFIDAVIT IS REQUIRED TO STATE:

• THAT THE ANNUAL TOTAL REVENUE FOR THE MOST RECENT FINANCIAL YEAR WAS R 5 MILLION OR LESS

• WHAT THE CURRENT LEVEL (%) OF BLACK / BLACK WOMEN OWNERSHIP IS

MISREPRESENTATION CONSTITUTES A CRIMINAL OFFENCE



START-UP ENTERPRISE

A START-UP ENTITY IS MEASURED AS AN EME FOR THE FIRST YEAR FOLLOWING ITS FORMATION OR INCORPORATION

THIS PROVISION APPLIES REGARDLESS

OF THE EXPECTED TOTAL REVENUE OF THE START-UP BUSINESS

WILL BE DEEMED TO HAVE THE QUALIFYING STATUS OF AN EME



TURNOVER THRESHOLD OF QSE

A QUALIFYING SMALL ENTERPRISE (QSE) IS A

BUSINESS WITH AN ANNUAL TURNOVER OF R 35 MILLION

OR LESS (< R50 MILLION FOR AIRLINE OPERATORS)

IF LESS THAN 51% BLACK-OWNED, THEN AN ON-SITE B-BEE AUDIT IS REQUIRED IN ORDER TO DETERMINE THE B-BBEE CONTRIBUTOR STATUS OF THE BUSINESS

IF 51 % OR MORE BLACK-OWNED,

QSE GRANTED LEVEL 2 B-BBEE CONTRIBUTOR STATUS

IF 100 % BLACK OWNED,

QSE GRANTED LEVEL 1 B-BBEE CONTRIBUTOR STATUS



QUALIFICATION AS QSE

A MAJORITY BLACK-OWNED QSE ONLY REQUIRES A SWORN AFFIDAVIT ANNUALLY

THE AFFIDAVIT IS REQUIRED TO STATE:

• THAT THE ANNUAL TOTAL REVENUE FOR THE MOST RECENT FINANCIAL YEAR WAS R 35 MILLION OR LESS

• WHAT THE CURRENT LEVEL (%) OF BLACK MEN / BLACK WOMEN OWNERSHIP IS

• EMPOWERING SUPPLIER STATUS

MISREPRESENTATION CONSTITUTES A CRIMINAL OFFENCE



TURNOVER THRESHOLD GENERIC

A GENERIC ENTERPRISE IS A BUSINESS

THAT HAS AN ANNUAL TURNOVER WHICH

IS GREATER THAN R 35 MILLION

(> R 50 MILLION FOR AIRLINE OPERATORS)

AN ON-SITE B-BBEE VERIFICATION AUDIT IS REQUIRED

ALL ELEMENTS ARE REQUIRED TO BE MEASURED



SCORECARD SUMMARY

ELEMENT POINTS

OWNERSHIP 25

MANAGEMENT CONTROL 28

SKILLS DEVELOPMENT 27 + 5

ENTERPRISE AND SUPPLIER DEVELOPMENT 40 + 4

SOCIO-ECONOMIC DEVEOPMENT 5

TOTAL

125 + 9 BONUS


B-BBEE STATUS

B-BBEE STATUS QUALIFICATION RECOGNITION

LEVEL

LEVEL 1 CONTRIBUTOR > 100 135%

LEVEL 2 > 95 but < 100 125%

LEVEL 3 > 90 but < 95 110%

LEVEL 4 > 80 but < 90 100%

LEVEL 5 > 75 but < 80 80%

LEVEL 6 > 70 but < 75 60%

LEVEL 7 > 55 but < 70 50%

LEVEL 8 > 40 but < 55 10%

NON-COMPLIANT < 40 0%


POINTS COMPARISON

B-BBEE STATUS OLD

QUALIFICATION

NEW

QUALIFICATION

LEVEL 1 CONTRIBUTOR > 100 POINTS > 100 POINTS

LEVEL 2 > 85 but < 100 > 95 but < 100

LEVEL 3 > 75 but < 85 > 90 but < 95

LEVEL 4 > 65 but < 75 > 80 but < 90

LEVEL 5 > 55 but < 65 > 75 but < 80

LEVEL 6 > 45 but < 55 > 70 but < 75

LEVEL 7 > 40 but < 45 > 55 but < 70

LEVEL 8 > 30 but < 40 > 40 but < 55

NON-COMPLIANT < 30 POINTS < 40



PRIORITY ELEMENT COMPLIANCE

THREE PRIORITY ELEMENTS HAVE BEEN

IDENTIFIED WHERE A 40% COMPLIANCE

LEVEL IS REQUIRED TO BE ACHIEVED

• OWNERSHIP

• SKILLS DEVELOPMENT

• ENTERPRISE & SUPPLIER DEVELOPMENT


OWNERSHIP ELEMENT

SUB-MINIMUM COMPLIANCE

THE SUB-MINIMUM REQUIREMENT FOR

OWNERSHIP IS

40% OF THE NET VALUE INDICATOR

OF THE 8 POINTS AVAILABLE

3.2 POINTS MUST BE ACHIEVED


SKILLS DEVELOPMENT ELEMENT



SKILLS DEVELOPMENT IS

40% OF THE TOTAL WEIGHTING POINTS

OF THE 20 POINTS AVAILABLE

8 POINTS MUST BE ACHIEVED

(THIS EXCLUDES BONUS POINTS)


ENTERPRISE & SUPPLIER DEV’MENT



ENTERPRISE & SUPPLIER DEVELOPMENT IS

40% FOR EACH OF THE 3 CATEGORIES:

• PREFERENTIAL PROCUREMENT

10 POINTS OUT OF 25 POINTS

• SUPPLIER DEVELOPMENT

4 POINTS OUT OF 10 POINTS

• ENTERPRISE DEVELOPMENT

2 POINTS OUT OF 5 POINTS Inforcomm (Pty) Ltd: A Sanas accredited BEE Verification Agency, No. BVA034


DISCOUNTING OF SCORECARD

NON-COMPLIANCE WITH THE SUB-MINIMUM

REQUIREMENTS

OF ANY

OF THE PRIORITY ELEMENTS WILL RESULT

IN THE B-BBEE STATUS THAT HAS BEEN

ACHIEVED

BEING DISCOUNTED

DOWN

ONE

LEVEL


THE FIVE PILLARS OF

THE AMENDED B-BBEE CODES

http://www.unitrans.co.za/index.asp



OWNERSHIP




OWNERSHIP CRITERIA POINTS TARGET

Exercisable voting rights in the hands of Black

people

4 25% + 1

Exercisable voting rights in the hands of Black

women

2 10%

Economic interest to which Black people are entitled 4 25%

Economic interest to which Black women are

entitled

2 10%

Economic interest of Black natural people in Broad-

Based schemes and designated groups

3 3%

Economic interest of Black new entrants

2 2%

Realisation points (Net Value) 8 Debt-Free

TOTAL

25


OWNERSHIP


MANAGEMENT CONTROL




FORMULA FOR SENIOR, MIDDLE AND

JUNIOR MANAGEMENT

MEASURED ACCORDING TO DIVERSITY

TARGETS BASED ON DEMOGRAPHICS

OF THE ECONOMICALLY ACTIVE

POPULATION

EQUITABLE REPRESENTATION OF EACH

INDIVIDUAL BLACK RACE GROUP REQUIRED

AFRICAN + INDIAN + COLOURED

MALE + FEMALE


CURRENT NATIONAL DIVERSITY

TARGETS FOR BLACK PEOPLE

COMPLIANCE TARGETS ARE ALIGNED TO THE

COMMISSION FOR EMPLOYMENT EQUITY

REPORT WHICH IS PUBLISHED ANNUALLY

AFRICAN MALE – 41.7%

COLOURED MALE – 5.7%

INDIAN MALE – 1.8%

AFRICAN FEMALE – 34.6%

COLOURED FEMALE – 4.9%

INDIAN FEMALE – 1.0%


MANAGEMENT CONTROL CRITERIA WEIGHT TARGET

Exercisable voting rights of Black board

members as percentage of all board members

2 50%

Exercisable voting rights of Black women board

members as a percentage of all board members

1 25%

Black executive directors as a percentage of all

executive directors

2 50%

Black women executive board members as a

percentage of all executive directors

1 25%

Black executive management as a percentage of

all executive directors

2 60%

Black women executive management as a

percentage of executive directors

1 30%


MANAGEMENT CONTROL



Black employees in senior management as a

percentage of all such employees

2 60%

Black women employees in senior management as

a percentage of all such employees

1 30%

Black employees in professionally qualified and

experienced specialist and mid-management

positions as a percentage of all such employees

2 75%

Black women employees in professionally qualified

and experienced specialist and mid-management

positions as a percentage of all such employees

1 38%


MANAGEMENT CONTROL



Black employees in junior management as a


1 88%

Black women employees in junior management as a


1 44%

Black employees with disabilities as a percentage of

all employees

2 2%

Black women employees with disabilities as a

percentage of all employees

1 1%

Black youth in all other positions as a percentage of

all employees

2 15%

AVIATION INDUSTRY B-BEE CODE

MANAGEMENT CONTROL



Black pilots as a percentage of all pilots 2 10%

Black female pilots as a percentage of all pilots

1 5%

Black technicians as a percentage of all technicians 2 30%

Black female technicians as a percentage of all

technicians

1 5%

TOTAL

28


MANAGEMENT CONTROL


SKILLS DEVELOPMENT




SKILLS DEVELOPMENT

PRE-REQUISITES

THE FOLLOWING CRITERIA MUST BE FULFILLED IN ORDER TO RECEIVE POINTS

WORKPLACE SKILLS PLAN – SETA APPROVED

ANNUAL TRAINING REPORT – SETA APPROVED

PIVOTAL REPORT – SETA APPROVED

IMPLEMENT PROGRAMMES TARGETED AT IMPROVING PRIORITY SKILLS (MORE SPECIFICALLY FOR BLACK PEOPLE)



SKILLS DEVELOPMENT

SKILLS DEVELOPMENT CRITERIA WEIGHT TARGET

Skills expenditure for Black people on programmes

specified in the Learning Programme Matrix as a

percentage of Leviable amount

8 6%

Skills expenditure for Black employees with

disabilities on programme specified in the Learning

Programme Matrix as a percentage of Leviable

amount

5 0.5%

Number of Black people participating in Management

Development Programmes as a percentage of all

managers

5 2.5%

Number of Black employees participating in

learnerships, apprenticeships or internships as a

percentage of total employees

5 3%


SKILLS DEVELOPMENT

SKILLS DEVELOPMENT CRITERIA WEIGHT TARGET

Number of Black unemployed people

participating in training specified in the Learning

Programme Matrix as a percentage of total

employees

4 2.5%

BONUS POINTS

Number of Black people absorbed by the

measured or industry entity at the end of the

learnership programme

5 100%

TOTAL

27 + 5 = 32


ENTERPRISE AND SUPPLIER

DEVELOPMENT





PREFERENTIAL PROCUREMENT

PREFERENTIAL PROCUREMENT CRITERIA WEIGHT TARGET

B-BBEE procurement spend from all

EMPOWERING SUPPLIERS based on the BEE

procurement recognition levels as a percentage of

Total Measured Procurement Spend

5 80%

B-BBEE procurement spend from QSE

EMPOWERING SUPPLIERS based on the BEE

procurement recognition levels as a percentage of

Total Measured Procurement Spend

3 15%

B-BBEE procurement spend from EME based on the

BEE procurement recognition levels as a percentage

of Total Measured Procurement Spend

4 15%

B-BBEE procurement spend from suppliers that are

at least 51% Black owned

9 40%


PREFERENTIAL PROCUREMENT

PREFERENTIAL PROCUREMENT CRITERIA WEIGHT TARGET

B-BBEE procurement spend from suppliers that are

at least 30% Black Women owned

4 12%

BONUS POINTS

B-BBEE procurement spend from DESIGNATED

GROUP SUPPLIERS that are at least 51% Black-

owned

2 2%


SUPPLIER DEVELOPMENT CRITERIA WEIGHT TARGET

Annual value of all Supplier Development

contributions made as a % of the target

10 2%

of NPAT


SUPPLIER DEVELOPMENT


ENTERPRISE DEVELOPMENT CRITERIA WEIGHT TARGET

Annual value of all Enterprise Development

contributions made as a % of the target

5 1%

of NPAT

BONUS POINTS

Graduation of one or more Enterprise

Development beneficiaries to the supplier

development level (bonus)

1 Bonus

Creating one or more jobs directly as a result

of Supplier Development and Enterprise

Development initiatives

1 Bonus

TOTAL

40 + 4 = 44


ENTERPRISE DEVELOPMENT


ENTERPRISE DEVELOPMENT

BENEFICIARY

BENEFICIARY ENTITY MUST BE AT

LEAST 51% BLACK OR AT LEAST 51%

BLACK-WOMEN OWNED TO QUALIFY

FOR THE RECOGNITION OF

CONTRIBUTIONS

EME OR QSE ONLY – WITH AN ANNUAL

GROSS SALES TURNOVER OF LESS

THAN R50 MILLION PER YEAR


EMPOWERING SUPPLIER DEFINITION

IS A B-BBEE COMPLIANT ENTITY

THAT IS ALSO COMPLIANT WITH THE

EMPLOYMENT EQUITY ACT

SKILLS DEVELOPMENT ACT

SKILLS DEVELOPMENT LEVIES ACT


1. EMPOWERING SUPPLIER

AT LEAST 25% OF COST OF SALES

EXCLUDING LABOUR COST AND

DEPRECIATION, MUST BE PROCURED

FROM LOCAL PRODUCERS OR LOCAL

SUPPLIERS WITHIN SOUTH AFRICA

FOR SERVICE INDUSTRY ENTITIES,

LABOUR COSTS ARE INCLUDED BUT

CAPPED AT 15%



JOB CREATION

50% OF JOBS CREATED ARE FOR BLACK PEOPLE

PROVIDED THAT THE NUMBER OF BLACK EMPLOYEES SINCE THE IMMEDIATE PRIOR VERIFIED B-BBEE MEASUREMENT IS MAINTAINED



AT LEAST 25% OF RAW MATERIAL HAS

BEEN TRANSFORMED / BENEFICIATED

BY THE ENTITY WITHIN SOUTH AFRICA

INCLUDING LOCAL MANUFACTURING,

PRODUCTION AND/OR ASSEMBLY,

AND/OR PACKAGING



SKILLS TRANSFER

AT LEAST 12 DAYS PER ANNUM OF

PRODUCTIVITY HAS BEEN DEPLOYED

BY THE ENTITY IN ASSISTING BLACK

EME AND QSE BENEFICIARIES TO

INCREASE THEIR OPERATIONAL OR

FINANCIAL CAPACITY



AT LEAST 85% OF TOTAL LABOUR

COSTS SHOULD BE PAID TO SOUTH

AFRICAN EMPLOYEES

FOR SERVICE INDUSTRY ENTITIES


SOCIO-ECONOMIC

DEVELOPMENT




SOCIO-ECONOMIC DEVELOPMENT

CRITERIA

WEIGHT TARGET

Annual value of all qualifying Socio-Economic

Development contributions made as a

percentage of the target

5 1%

of NPAT





THE FULL VALUE OF THE CONTRIBUTION IS RECOGNISABLE ONLY IF 75% OF THE CONTRIBUTIONS DIRECTLY BENEFITS BLACK PEOPLE

IF THE BENEFICIARY BASE HAS LESS THAN 75% BLACK REPRESENTATION, THEN THE CONTRIBUTIONS WILL BE RECOGNISED AT THE LOWER PERCENTAGE



APPLICABILITY

IF THE LAST DAY OF THE 12-MONTH FINANCIAL PERIOD THAT IS BEING MEASURED OCCURS BEFORE THE FINAL PUBLICATION DATE OF THE CODE, THEN THE OLD CODES MAY STILL APPLY TO THE MEASUREMENT

IF THE LAST DAY OF THE 12-MONTH FINANCIAL PERIOD THAT IS BEING MEASURED OCCURS AFTER THE FINAL PUBLICATION DATE, THEN THE APPLICATION OF THE AMENDED CODES IS COMPULSORY



SCORECARD SUMMARY

ELEMENT POINTS

OWNERSHIP 25

MANAGEMENT CONTROL 28

SKILLS DEVELOPMENT 27 + 5

ENTERPRISE AND SUPPLIER DEVELOPMENT 40 + 4

SOCIO-ECONOMIC DEVEOPMENT 5

TOTAL

125 + 9 BONUS


B-BBEE STATUS

B-BBEE STATUS QUALIFICATION RECOGNITION

LEVEL

LEVEL 1 CONTRIBUTOR > 100 135%

LEVEL 2 > 95 but < 100 125%

LEVEL 3 > 90 but < 95 110%

LEVEL 4 > 80 but < 90 100%

LEVEL 5 > 75 but < 80 80%

LEVEL 6 > 70 but < 75 60%

LEVEL 7 > 55 but < 70 50%

LEVEL 8 > 40 but < 55 10%

NON-COMPLIANT < 40 0%

QUESTIONS

Aviation Business Opportunities – Are they

accessible? Mr Pule Mokoena – Executive

Head – Policy and Research Black Business Council

Presentation to

Aviation Industry Growth Conference 12 October 2016

IN ORDER TO HONOUR THE ABOVE, REVIEW AND REVAMP OUR STRUCTURES TO BETTER GIVE EFFECT TO THE MANDATE OF THE BBC LINKED IN PARTICULAR TO 5.2.1 OF THE BBC CONSTITUTION

INTRODUCTION

BBC Objectives as set out in the Black Business Council Constitution sect. 5.1

• “The BBC shall promote, develop, and ensure that there is economic transformation and empowerment of Blacks, in business and at all levels of the South African economy”

• Implementation under 5.2.1 requires that the BBC will, inter alia: – “Formulate policies and advocate for the implementation of laws which promote

and advance transformation’

• 5.2.3 goes on to state – “Participate in the formulation and drafting of all transformation and economic

empowerment legislation and other laws which have particular impact on Blacks, the poor and other marginalised constituencies in South Africa”

BLACK BUSINESS COUNCIL

• The Black Business Council is the over-arching collective of black professional and business formations, including business chambers.

• We are a non-racial, a-political organisation committed to the unity of black business, black professional associations as well as the unity of white business.

• Our membership also comprises of corporates from various industry sectors who subscribe to the ethos of transformation.

• Our raison d’etre is to increase participation of black South Africans in the mainstream economy.

MEMBER ORGANISATIONS

• ABSIP

• AFRICAN BUILDERS ASSOCIATION

• AFRICAN COOPERATIVES FOR

HAWKERS AND INFORMAL BUSINESSES

• BLACK BUSINESS COUNCIL IN BUILT

ENVIRONMENT (BBCBE)

• BLACK BUSINESS EXECUTIVE CIRCLE (

BBEC)

• BLACK CONVEYANCERS ASSOCIATION

( BCA)

• BLACK LAWYERS ASSOCIATION (BLA)

• BLACK MANAGEMENT FORUM

• CONFEDERATION OF ASSOCIATION IN

THE PRIVATE EMPLOYMENT SECTOR

(CAPES)

• NATIONAL INDUSTRIAL CHAMBER (NIC)

• NATIONAL SOCIETY OF BLACK

ENGINEERS (NSBE)

• NATIONAL AFRICAN FARMERS UNION

(NAFU)

• NATIONAL AFRICAN FEDERATED

CHAMBER OF COMMERCE AND

INDUSTRY (NAFCOC)


COUNCIL IN RETAIL (NAFRET)

MEMBER ORGANISATIONS

• SIYAKHA

• SOUTH AFRICAN LEISURE TOURISM AND

HOSPITALITY ASSOCIATION (SALTHA)

• NATIONAL AFRICAN FEDERATED OF

TRANSPORT ORGANISATION ( NAFTO)

• NATIONAL ASSOCIATION OF

MANUFACTURERS IN ELECTRONICS

COMPONENTS (NAMEC)


SECURITY AND CLEANING SECTOR

(NAFSEC)

• NATIONAL BLACK BUSINESS CAUCUS

(NBBC)

• NATIONAL BLACK CONTRACTORS &

ALLIED TRADES ( NABCAT)

• PROGRESSIVE PROFESSIONALS FORUM ( PPF)

• SOUTH AFRICAN MINING DEVELOPMENT

ASSOCIATION (SAMDA)

• SOUTH AFRICAN MINING AND ENERGY

CHAMBER SAMEC)

• TAXI CHOICE- SOUTH AFRICAN

NATIONAL ASSOCIATION (SANTACO)

• SOUTH AFRICAN WOMEN BUSINESS

COUNCIL OF COOPERATIVES

(SAWBCC)

• SOUTH AFRICAN WOMEN IN

CONSTRUCTION (SAWIC)

CORPORATE MEMBERS

• AFRICAN RAINBOW MINERALS

(ARM)

• PAMODZI INVESTMENT HOLDINGS

• REDISA

• ZICO

• VBS MUTUAL BANK

• ULWAZI GROUP

• ALUWANI CAPITAL PARTNERS

• SIZWE NTSALUBA GOBODO

• ESKOM

• EDISON CORP

• GROUP FIVE

• SANLAM

• ASEDA

• ECONO OIL

• EXXARO

• REGIMENTS CAPITAL

• OCEANA GROUP

• ACUTECH GROUP

2020

VISION

JOURNEY: THE BBC HAS TO CONTINUALLY REVIEW ITS MODEL AND MATCH DELIVERY CAPABILITY TO ITS CHOSEN STRATEGY

REBIRTH EVOLUTION

CAPACITY

WE HAVE ADDED EXECUTION CAPABILITY TO ADVOCACY WORK

BBC JOURNEY TO BEING THE APEX BUSINESS BODY

REACTIVE

PR

OA

CTIV

E

TODAY

F ‘15/16

F ‘16/17

F ‘17/18

F ‘18/19

FUND + + + +

PROGRAMMES [PMO] AND SELF SUFFICIENCY

POLICY & ADVOCACY + STRUCTURES [BBC_Cap] 1

THE BUSINESS APEX BODY: POLICY, FUND, BIP[LEAD]

2

3

4

2020+ VISION

F ’19/20

POLICY

5

TIME

PMO

STRUCTURING

CONSOLIDATE

CAPABILITY

BBC_NEXT

EDP

THE IMPLICATIONS OF EXPANDING DELIVERY CAPABILITY

• Cost to serve will increase in line with capacity increase

– We’ll require new skills

– More talent

• More funding will be required

– To deliver expanded CVP

– Enhance input on existing areas of scope

• Our attractiveness as a partner will grow

– This will enhance our ability to execute on the BBC’s chosen

mandate

– Better positioned to attract partnerships

HOW WE PARTNER

PARTNERING FOR GROWTH

CURRENT PARTNERSHIPS

• IT: EOH - WIP

• FINANCIAL SERVICES: VBS BANK

• ASSET MANAGEMENT & PAYMENTS: ALUWANI, SNG

• SMALL BUSINESS: IBM + SBD MINISTRY + DTI

• GRAIN PROJECT: BARLOWORLD, GRAIN SA, TONGAAT HULETT AND LAND BANK

• DEPARTMENT OF SCIENCE AND TECHNOLOGY

• EXXARO

BB

C PLATFO

RM

(PR

OG

RA

MM

E MA

NA

GEM

ENT

OFFIC

E)

BACKGROUND AND INTRODUCTION

On the 5th April 2016, the BBC hosted a Round table discussion with the Department of Science and Technology to discuss opportunities for business within the Science and Technology domain under the umbrella of the DST‘s entities. During the discussion, it was agreed that further discussions should take place between the parties (DST and BBC) to further explore opportunities for collaboration in order to

promote and support the growth of business within the Science and Technology sector. The BBC further endorsed the exploration of the working relationship with the DST, hence meeting and workshops with

senior officials of the Department (and thus this collaborative partnership proposal).

HySA

Solar R

DI

Clean

Teach In

no

vation

Waste

Water

Ad

vance M

anu

facturin

g

Techn

olo

gy Station

s

Techn

olo

gy Localisatio

n

Sector In

no

vation

Fun

d

R &

D Tax In

centive

Inn

ovatio

n B

ridge

BUILDING NEXT WAVE PLAYERS THROUGH ACCESS TO IP, BROADENING INCLUSIVITY, BENEFICIATION, OWNERSHIP AND TECHNOLOGY LOCALISATION

THE JOURNEY

ECONOMIC TRANSFORMATION

TODAY

1

2

SAC

AA

STR

ATEG

IC P

AR

TNER

SHIP

SMME DEVELOPMENT

4

INDUSTRIALIST DEVELOPMENT

VALUE CHAIN ENABLEMENT + CIVIL AVIATION DESK

INDUSTRIALIST CRITERIA TO APPLY UPFRONT

TRANSFORMATION THROUGH ADVOCACY TO FOSTER INCLUSIVITY

TARGET GROWTH OPPORTUNITIES FOR

INDUSTRIALISTS

3

BLACK INDUSTRIALISTS

Mainstream economy

participation

EDP Talent Policy CORPORATE

MEMBERSHIP CSI

ASSET TRANSFER TO BLACK ENTREPRENEURS TECHNOLOGY LOCALIZATION

BROADENING INCLUSIVITY; ACCESS TO IP

NATIONAL STRUCTURES

RESHAPE & REFRAME 5

SACAA & EMPOWERMENT

EMPOWERMENT – MORAL IMPERATIVE

• Aligned to BBBEE legislation

• ownership

• Management control

• Skills development

• Enterprise and Supply Development

• Socio-Economic Development

BBC CATALYST

• Business Development • Human Capital Transformation • Market access

– Set asides – Procurement

• Access to finance – DFI’s & Private Sector – Grant funding

• Policy

THE SUSTAINABLE DEVELOPMENT OF THE AVIATION INDUSTRY

THANK YOU

KEEPING YOU SAFE IN THE SKY

Available resources to support sustainable aviation to ensure

a sufficient and suitably qualified pool of skills Ms Maphefo Frempong

Chief Executive Officer TETA

Incentives available for the aviation industry within the DTI

Ms Norma Sali Regional Manager – Northern Cape

Strategic partnerships and customer care The DTI

the dti provides financial support to qualifying companies

in various sectors of the economy. Financial support is

offered for various economic activities, including

manufacturing, business competitiveness, export

development & market access, as well as foreign direct

investment.

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za

mailto:[email protected]

INCENTIVE DEVELOPMENT

&

ADMINISTRATION DIVISION

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za


Industrial Infrastructure Incentive

INCENTIVE ELIGIBLE BUSINESSES BENEFIT

Critical Infrastructure

Programme

CIP

Local & provincial government, private

sector, PPPs & industrial development

projects

Level 4 B-BBEE compliance

Written undertaking by investor to

establish investment project

Statutory regulations compliance e.g.

Environmental permits

Max of R50m of total qualifying

infrastructural development costs,

based on a Min of 50 points,

achieved score in the Economic

Benefit Criteria (B-BBEE

Compliance-25; Priority Sectors-

20; Investment Value not

Infrastructure-30; & Location-25)

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za


QUALIFYING

INFRASTRUCTURE

•Structural foundations, permanent network facilities which business or society in

general receive or supply basic services such as transport, electrical infrastructure

& bulk water supply, sanitation, telecommunications, place of trade operations, etc.

Examples of infrastructure

•Roads;

•Bridges;

• Industrial parks;

•Electricity transmission lines;

•Renewable energy including associated generation (e.g. generators) storage (only

private sector off take agreements);

•Water pipelines, purification, sewers;

•Telephone lines & facilities that supply, protect or facilitate the networks, systems &

trade; &

•Cogeneration of power facilities (may be supported subject to

availability of funds)

Some investment projects may need infrastructure that is critical to

investment yet not necessarily accessible to other businesses or the public, such

infrastructure may be supported

QUALIFYING

INFRASTRUCTURE

•State-owned Aerospace & Defence National Strategic Testing Facilities only, this

may include machinery & equipment limited to the quality & safety testing

purposes of aerospace & defence products as required by the South African

Bureau of Standards (SABS) & other statutory bodies

•Establishment of new or upgrading (revamping/resuscitating) infrastructure &

fencing of state-owned industrial parks

•Refurbishment of existing buildings within industrial parks

•Development costs to distressed municipalities

•Renewable energy projects that are not under the Renewable Energy Independent

Power Producers Procurement Programme (REIPPPP)

•Investment that alleviates water &/or electricity dependency on the national grids.

That is, investment that makes them less dependent on national supplies

•Any infrastructure that has implications of up-scaling the area’s agro-production

capacity through up-scaling the production demand in the area; & the business is

likely to add competitiveness into the supply-chain & reduce the products being

imported into the area

Industrial Infrastructure Incentive

QUALIFYING COSTS

•Costs incurred directly in the design, installation, construction &

erection of the infrastructure

•Costs incurred by the applicant in payment of third parties contracted

to undertake the project

• Infrastructure commissioning (quality assurance & certification) costs,

but limited solely to the essential costs of commissioning officials & the

test of equipment or machinery required

•Costs related to the refurbishment of buildings within industrial parks

•Any costs, which the Adjudication Committee in its sole discretion may

deem as qualifying

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za


CIP COMPONENTS BENEFIT COST SHARING

RANGE

Industrial projects R50m 10 – 30%

Agro-processing applicants & state-owned Aerospace & Defence

National Strategic Testing Facilities R50m 10 – 50%

Projects that alleviate water &/or electricity dependency on the

national grid (Investment that is less dependent on national grid) R50m 10 – 50%

Distressed municipalities & state-owned industrial parks R50m 100%

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za



Support Programme for

Industrial Innovation

SPII

Promotes development of technological innovative

products - processes that are commercially viable &

internationally competitive

Military nature projects must have a substantial general

commercial or civilian application

Does not support projects that are more than 50%

complete at the time of application

Businesses must be SA registered and the Intellectual

Property to reside in SA registered company

Development must show significant advance in

technology & subsequent production must take place

within SA

Government funded institutions (e.g. CSIR) do not

qualify directly but may participate as

subcontractor(s)

•Product Process

Development Scheme

•Matching Scheme

Technology Incentives

INCENTIVE QUALIFYING COSTS

Support Programme for

Industrial Innovation

SPII

•Personnel Related Costs;

•Travel Expenses (defined max);

•Direct Material;

•Capital Items & Tooling;

•Software (not general software);

•Documentation;

•Testing & Trials;

•Licensing Costs;

•Quality Assurance & Certification;

•Patent Costs; &

•Subcontracting & Consulting.

Technology Incentives

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za


INCENTIVE COMPONENTS BENEFIT 0% – 25% BEE

ownership

25.1% – 50%

BEE ownership

>50% BEE

ownership

Product Process

Development Scheme

Businesses whose total

assets (excl. fixed property)

are below R5m; turnover less

R13m & total employees

below 50, per NSB

Amendment Act of 2003

Manufacturing Category

A % of qualifying costs

incurred in the pre-competitive

development activities

associated with a specific

project.

R2m

50%

of qualifying

costs incurred

75% of

qualifying costs

incurred

85% of qualifying

costs incurred

Matching Scheme

All businesses

A % of qualifying costs

incurred in the development

activities of a specified

development project

R5m

50%

of qualifying

costs incurred

65% of

qualifying costs

incurred

75% of qualifying

costs incurred

INCENTIVE ELIGIBLE CRITERIA BENEFIT

Incubator Support

Programme

ISP

Applicants establishing new or expand

existing incubators:-

Legal entities registered through CIPC;

Registered higher or further education

institution; Licensed registered science

council; Companies; Academic or

Research institution in partnership with

industry.

Must focus on establishing & or growing

businesses that will graduate to sustainable

businesses.

NB: Business model; Commitment Letter;

Financial Requirement; Market; Exit

Strategy; & Sustainability.

Large firms: 50:50 Cost sharing

SMMEs: 40:60 Cost sharing

CAPEX & OPEX

Capped at a max of R10m (incl.

VAT) per financial year over a

three (3) year period funds.

Manufacturing Incentives


INCENTIVE ELIGIBLE CRITERIA

Section 12i Tax Allowance

12i

Supports Manufacturers under Standard Industrial Classification Code 3

Excluding SIC 3577 or 252 - Arms and ammunition

Qualifying assets: building, plant & machinery (R50m Greenfield project &

R30m Brownfield project)

Skill development, 2% of wage bill

The allowance is deductible from taxable income in the same way as

depreciation & other expenses.

It reduces the amount of taxable income & eventually the amount of

tax payable.

Allows for claiming additional investment tax allowance (35% or 55%

capped at R550m for brownfield project or R990m for greenfield

project) on qualifying manufacturing assets


INCENTIVE SCORING

Section 12i Tax Allowance

12i

The level of allowance is determined by a point scoring system:-

A min of 4 points out of 8 must be scored.

To achieve Qualifying Status: 4, 5 or 6 out of 8 must be scored

To achieve Preferred Status: 7 or 8 must be scored

• Innovation (Max 1 points)

• Improved Energy Efficiency (Cleaner Production Technology) (Max 2

points)

• Business Linkages (Max 1)

• SMME Procurement (Max 1)

• Skills Development (Training of Employees) (Max 2)

• Located in an Industrial Development Zone (IDZ) (Max 1 point)

INCENTIVE CALCULATION

Section 12i Tax

Allowance

12i

The full allowance will be deductible in the year of assessment (but within the

4 year limit) when at least 50% of the manufacturing assets are brought into

use.

Greenfield investing R1.7bn in Qualifying Assets with a Preferred Status

• Lesser of 55% of QA or a max of R900m

• Lesser of 55% x R1.7bn = R935m or max of R900m

• Investment Allowance applicable = R900m

• Allowance of R900m equates to a tax saving of R900m x 28%

= R252k (28% is the prevailing companies’ tax rate).

Calculation based on the lesser of the actual expenditure on training or the

average number of Employees x R36k

•Average number of Employees: 100

•Max allowance per Employee over 6 years: R36k

•Actual training costs: R3m

•Calculated Training Allowance: 100 x R36k = R3,6m

•Final Training Allowance applicable: R3m



Black

Industrialist

Scheme

BIS

A Black industrialist, are Black South Africans defined by the B-BBEE Act, creating &

owing value-adding industrial capacity:-

•Provide strategic & operational leadership;

•Have a greater than 50% shareholding & management control

While a desire to support entities with significant & dominant Black ownership & control,

there may be other shareholders to attract relevant skills, finance & opportunities

•Have a valid B-BBEE certificate of compliance

•Achieve 4 economic benefit criteria elements

•New operation/business start-up;

•Current business expansion; &/or

•Acquisition of an existing manufacturing (expanding &/or upgrading the facility)

•Project with a min investment of R30m;

•Project result in securing &/or increasing direct employment


ECONOMIC BENEFIT CRITERIA

Criteria Description Point

Employment Securing/retaining/increasing direct employment 1

Market Share New operations: Securing market share for the entity; or

Existing operations: Increase market share for the entity

1

Quality Improvement Reduction of relative prices &/or increasing the quality of products to consumers 1

Green Technology &

Resource Efficiency

Improvements

Savings/better use of energy or materials &/or cleaner production improvement &/or

waste management improvement &/or water usage improvement &/or use of renewable

energy

1

Localisation Increasing the localisation of production activities (diversification & exports) 1

Regional Spread Projects should be located in rural areas or areas with unemployment higher than 25%

per National Census figures

1

Personal Risk Demonstrate own financial &/or non-financial contribution to the business 1

Empowerment Achieve at least a level 4 B-BBEE contributor status per revised B-BBEE Codes of

Good Practice published in October 2013 (as amended)

1


QUANTUM CALCULATION

POINTS ON

ECONOMIC BENEFIT

CRITERIA

PERCENTAGE BLACK OWNERSHIP

50% to 75% > 75% to 90% > 90% to 100%

4 TO 6 POINTS 30% 35% 40%

7 POINTS 40% 45% 50%

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za



INCENTIVE QUALIFYING IPAP SECTORS

Black

Industrialist

Scheme

BIS

Operate in the following productive manufacturing sector ( IPAP):-

•Blue/ocean economy (including vessel building & repair )

•Oil & gas

•Clean technology & energy

•Mineral beneficiation

•Aerospace, rail & automotive components

• Industrial Infrastructure

• Information communication technologies

•Agro-processing

•Clothing, textiles/leather & footwear

•Pulp, paper & furniture

•Chemicals, pharmaceuticals & plastics

•Nuclear

•Manufacturing related logistics e.g. Warehousing, Cold Storages (must show direct link

with Manufacturers

•Designated sectors for localisation

Norma Sali

[email protected]

0123941460

0861 843 384

www.thedti.gov.za

Norma Sali

[email protected]

0123941460

0861 843 384

www.thedti.gov.za


INCENTIVE BENEFIT

Black

Industrialist

Scheme

BIS

•Cost sharing incentive ranging from 30% to 50% per the Economic Benefit Criteria, to a

max of R50m

•The max incentive of R50m may be utilised for:

1.CAPITAL INVESTMENT COSTS;

Machinery & Equipment (tools, jigs & dyes & forklifts-at cost; green technology,

energy & resource efficiency equipment).

Factory buildings (at cost, constitute newly acquired buildings or the acquisition of an

existing building)

Commercial vehicles (linked to the production process includes vehicles used for

collection, delivery & distribution of goods)

2.FEASIBILITY STUDIES (studies towards a bankable business plan (max of 3% of

projected investment project cost);

3.POST-INVESTMENT SUPPORT (max of R500k); &

4.BUSINESS DEVELOPMENT SERVICES (max of R2m)

Product Development; Conformity Assessment Certification; Information Technology

Systems; Procurement process improvement; Patents Costs




INCENTIVE BENEFIT

Manufacturing

Competitiveness

Enhancement

Programme

MCEP

WORKING CAPITAL LOAN PLANT & EQUIPMENT LOAN

•Max repayment term 48 mths

•First drawdown must be within 6mths

from date of approval

•No laying-off staff during the facility term

•Achieve BBBEE level 4, if not , the

status must be achieved within 24mths

after approval

•No Raising fees applicable

•Only available to Black Industrialists

•Applicable to also Start Ups

•Max repayment term 84 mths

•Pre & Post Business Development

Support capped at R3m



Manufacturing

Competitiveness

Enhancement

Programme

MCEP

Supports Manufacturers under Standard Industrial Classification Code 3. Support is

directed at the Private Sector Defence Industry and excludes majority State

Owned Enterprises. Whether owned by the RSA government or Foreign

government(s)

•SIC 357 (manufacture of special purpose machinery)

•SIC 362 (manufacture of electronic components and boards)

•SIC 374 (manufacture of measuring, testing, navigating and control equipment)

•SIC 386 (manufacture of air and spacecraft related machinery)

•SIC 3577 (manufacture of weapons and ammunition) must be registered with the

National Convention Arms Control Committee (NCACC) and be in possession of the

relevant permit for the manufacture of these products.

Capped at R50m per application

Priced at a Preferential Rate Fixed at 4% Per Annum

To apply, visit the IDC website at www.idc.co.za

http://www.idc.co.za/

INCENTIVE ELIGIBLE CRITERIA BENEFIT

Capital Projects

Feasibility

Programme

CPFP

Capital goods sector (manufacture of

machinery used to create capital goods,

electrical equipment, aerospace,

engineering, construction, etc).

Projects can be situated anywhere in the

world, except South Africa

Achieve 50% local content in the

feasibility study (in terms of goods &

professional services)

Between R100k & R8m

Total cost of feasibility study:

Max of 55% for projects in Africa

Max of 50% for projects outside

Africa

Competitiveness Promotion Incentives

Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za



PROJECT STAGES FLOW CHART

Project

Origin

Preliminary

Analysis

Initial Risk

Analysis

Feasibility

Study

Pre Implementation

Phase

Project Execution

•Knowledge

of markets

•Knowledge

of supply

base

•Technology

transfer

•Market

potential

•Value of

investment

•Analysis of

in-house

expertise

•Potential

clients,/JV

partners

•R.O.I

analysis

•Country Credit

rating

•Credibility of local

promoter

•Political, economic

currency risks

•Detailed review of

investment code

issues (legal,

fiscal, incentives,

environmental

support)

•Readiness of local

market

•Potential of int.

market

•Existing

competition

•Market

analysis

•Technical

concepts of

the project

• Investment

estimates

•EIA

• Investment

close

consideration

•Financial

structure

•Financial

analysis

For equity partners

•Company structure

•Requisition of land,

permits & rights

•Confirmation of

incentives

In all cases

•Detailed technical

concepts

•Environmental issues

•Negotiations

• (financial institutions,

equity partners, JV

partners)

•Project time schedule

Meet:

•Technical

guarantees

•Budget

•Time schedule

INCENTIVE ELIGIBILITY BENEFIT

Export Marketing

Investment

Assistance

EMIA

Manufacturers of products, exporting

trading houses, commission agents,

export councils, industry associations,

provincial investment & trade

promotion agencies in SA

Air ticket, subsistence allowance,

transportation of samples, marketing

materials & exhibition cost

Individual participation in:-

Inward Missions

Exhibitions

Primary Market Research/Foreign

Direct Investment


Norma Sali

[email protected]

012 394 1460

0861 843 384

www.thedti.gov.za



Sector Specific

Assistance Scheme

SSAS

Export councils, Joint Action Groups &

industry associations

R3m

80:20 Cost sharing

Research, sector strategy,

international advertising & publicity

Project Funding for

Emerging Exporters

PFEE

Export councils, industry associations,

business chambers, seda, local

municipalities, provincial investment &

economic development agencies

The business must be 12mths in

operations

R1.9m

Air ticket, subsistence allowance,

transportation of samples,

marketing materials & exhibition

cost

Qualifying SMMEs participate 4

times in a Mission & or

Exhibition

Min 10 to 20 SMMEs


Global Market-Based Measures – ICAO outcomes and what they mean for the

industry. Ms Chinga Mazhetese

Aviation Environmental Protection Specialist

SACAA

Global Market-Based Measure

Scheme ICAO Outcome and what it means

for the industry

PRESENTED BY: Ms. CHINGA MAZHETESE (Pr.Sci.Nat)

Contents • Why MBMs?

• ICAO A38 and A39 Resolutions

• Introduction to CORSIA

• CORSIA Design Elements

• Phased implementation

• Applicability

• Offsetting requirements

• Review

• Future work on the CORSIA

• Impact on RSA

Why Market-based measures (MBMs)?

• one of ICAO’s basket of measures to mitigate the climate

change impacts of international aviation.

• Resolution A38-18, 2013

• worldwide goal should be reached to keep the net CO2 emissions

from international aviation at the same level as from 2020.

(Carbon Neutral Growth 2020 or CNG 2020).

• projected annual improvements in aircraft fuel efficiency of around 1-

2% are surpassed by forecasted traffic growth of around 5% each

year- emissions forecasted to grow.

• international aviation fuel consumption estimated to grow between

2.8 -3.9 times by 2040 compared to the 2010 levels.

A39 Resolution 22/2 -Consolidated statement of

continuing ICAO policies and practices related to

environmental protection – Global Market-based Measure

(GMBM) scheme

• endorsement of a GMBM,

• the first-ever market-based measure adopted

by an entire industry sector-6 Oct 2016

• scheme in the form of Carbon Offsetting and

Reduction Scheme for International Aviation (CORSIA)

CORSIA • to address any annual increase in total CO2

emissions from international civil aviation (i.e.

civil aviation flights that depart in one country and

arrive in a different country),

• above the 2020 levels,

• taking into account the following principles • Special Circumstances and Respective Capabilities

(SCRC);

• non-discrimination; and

• Fair and equal opportunity

CORSIA design elements

1 Phased Implementation as follows:

• Pilot phase (2021- 2023) voluntary participation by States:

• As of 6 October 2016, 65 States, representing more than 86.5% of

international aviation activity, volunteered to participate in the

CORSIA from its outset.-Kenya and Burkina Faso from Africa

• First phase (2024-2026) applicable to States that voluntarily participate in

the pilot phase; and

• Second phase (2027- 2035) mandatory to all States: • that have an individual share of international aviation activities in Revenue

Tonne Kilometres (RTKs) in year 2018 above 0.5% of total RTKs;

• whose cumulative share in the list of States from the highest to the lowest

amount of RTKs reaches 90% of total RTKs;

Phased implementation exempted for the following

States:

• Least Developed Countries (LDCs);

• Small Island Developing States (SIDS); and

• Landlocked Developed Countries (LLDCs) unless they

volunteer to participate in this phase.

Exempted States encouraged to voluntarily participate in the scheme.

2 Applicability (Supports differentiation)

Shall apply to all aircraft operators on the same routes between States

as follows:

• a) all international flights on the routes between States, that are

included in the CORSIA and are covered by the offsetting

requirements of the CORSIA

• b) exempted for all international flights on the routes between a

State that is included in the CORSIA and another State that is not

included in the CORSIA; and

• c) if both States are not included in the scheme, the CORSIA does

not apply

3 Offsetting requirements

The amount of CO2 emissions required to be offset by an aircraft

operator in a given year is calculated every year using the % Sectoral

and % Individual and will be applied as follows:

• i) 2021 - 2023,

• 100% sectoral and 0% individual;

• ii) 2024- 2026,

• 100 % sectoral and 0% individual;

• iii) 2027- 2029,

• 100 % sectoral and 0% individual

Offsetting requirements Cont.

• iv) 2030 -2032,

• at least 20% individual, with the Council recommending to the

Assembly in 2028 whether and to what extent to adjust the

individual percentage; and

• v) 2033 -2035,

• at least 70% individual, with the Council recommending to the

Assembly in 2028 whether and to what extent to adjust the

individual percentage;

4 Review of the CORSIA implementation

• will start in 2022 and will be conducted every three years.

• will involve:

a) assessment of progress towards achieving the ICAO’s global

aspirational goal; the scheme’s market and cost impact on

States and aircraft operators and on international aviation;

b) consideration of the scheme’s improvements, in particular its

long-term temperature goals; and update the scheme’s design

elements to improve implementation, increase effectiveness,

and minimize market distortion; and

c) a special review by the end of 2032 on termination of the

scheme, its extension or any other improvements of the

scheme beyond 2035, including consideration of the

contribution made by other basket of measures

More work to be done on the CORSIA

• Monitoring, Reporting and Verification (MRV);

• Emissions Unit Criteria (EUC); and

• Registries.

Work on the technical material in the above areas

will be developed by CAEP.

• CAEP will also develop the SARPs and related

guidance material for the implementation of the

MRV system, for adoption by the Council by

2018

Impact of joining CORSIA for RSA

• A39 official declaration to support CORSIA- no intention to

participate during the voluntary phases

• RSA RTK is currently 0.53%

• RSA will enter into the CORSIA in 2027 (2nd phase)

• International airlines affected

• New SARPs to be developed by CAEP might require

amendments to the CARs

Analysis done by CAEP- cost of carbon offsetting for operators will

range from

• 0.2- 0.6 % of total revenues from international aviation in 2025; and

• 0.5- 1.4% of total revenues from international aviation in 2035.

THANK

YOU

Partnering for Industry Growth

Mr Simon Segwabe Executive: Aviation Safety Operations

SACAA

Partnering For

Industry Growth

PRESENTED BY: Mr Simon Segwabe

Executive: Aviation Safety Operations

1. Purpose

2. Introduction of Civil Aviation in RSA

3. SACAA Mandate

4. SACAA Core Ideology

5. SACAA Functions

6. SACAA Partnerships

7. Aviation Industry

8. It is about Responsibility and Accountability

To discuss the need for closer

partnerships between the Regulator

and industry that will influence

growth in the industry.

Purpose

• Chicago Convention signed in 7 Dec 1944

• South Africa signed 1st March 1947

• SACAA is an organ of State established to fulfil an

international treaty on behalf of the State.

• We strive to be equal to the

best in the world.

Introduction of Civil

Aviation in RSA

Mandate (Contemporary Translation)

“Regulating the civil aviation industry to ensure security and safety by complying with the

International Civil Aviation Organization (ICAO) and taking into consideration the local context.”

Objects of the Civil Aviation Act No 13, 2009

(a) Control and regulate civil aviation safety and security;

(b) Oversee the implementation and compliance with the National Aviation Security Program;

(C) OVERSEE THE FUNCTIONING AND DEVELOPMENT OF THE CIVIL AVIATION INDUSTRY;

(D) PROMOTE CIVIL AVIATION SAFETY AND SECURITY;

(e) Develop any regulations that are required in terms of this Act; and

(f) Monitor and ensure compliance with this Act and the Convention .

SACAA MANDATE

Mission: To regulate civil aviation safety and security in support of the

sustainable development of the aviation industry. Vision: Ranked among the top 10 civil aviation authorities globally by

2020.

Brand Promise: Keeping you safe in the sky

Values

Good is never good enough - always giving your best effort and seeking to

continuously improve

Integrity – maintain high ethical standards and approach issues professionally

without any bias and in a transparent manner that engenders trust amongst all

stakeholders

Service delivery ahead of customer expectations - striving to always exceed

customer expectations

TEAMING AND PARTNERING – WORKING WITH OTHERS WHERE WE ARE

JOINTLY ACCOUNTABLE FOR THE END RESULT

SACAA Core Ideology

SACAA FUNCTIONS

SACAA AREAS FOR

PARTNERSHIPS

• Partnerships with Industry

• CARCOM

• NASCOM

• NASC

• Sub-committees

• Workgroups

• ILF etc.

• Delegations & Designations

• ORGANIZATIONS

• PERSONNEL

• PRODUCTS

SACAA AREAS FOR

PARTNERSHIPS

• ACCIDENT AND INCIDENT

INVESTIGATION

• SAFETY MANAGEMENT SYSTEM

SACAA AREAS FOR

PARTNERSHIPS

• Aviation

• The world's largest, most complex system.

• Commerce

• Transport

• Employment

• Leisure and Education

THIS SECTOR

• Non-functional Regulator

• Our strength is measured on the capability of our

Regulator.

• Misinterpretation of what regulation is and what it is

not?

• Insufficient participation on industry plans in order

to better anticipate their needs.

WHERE IT OFTEN GOES

WRONG

As the Regulator

As an enabler and partner of the industry

o Recognising and accepting that the world will

hold us to the same standards

o The industry has to survive and improve

operational standards

IT IS ABOUT RESPONSIBILITY

& ACCOUNTABILITY

THANK-YOU

Investing in infrastructure to unlock economic prosperity

Mr Gawie Bestbier Executive: Aviation Infrastructure

SACAA

Investing in infrastructure to unlock economic prosperity

PRESENTED BY: GAWIE BESTBIER

Content • Introduction

• Economic Indicators

• The 9 Point Plan and

NADP

• Benefits of rural airport

development

• Way forward

Introduction • It’s a fact – to facilitate prosperity, you need to invest

in infrastructure.

• Transport infrastructure is a critical enabler.

• The SA economy has several indicators that points to

an undeveloped rural economy and increasing rural

unemployment.

• The founding spirit (soul) of SA is its rural origin –

what happens to the rural economy determines the

mindset of many in the cities - don’t let that spirit die.

SOUTH AFRICAN ECONOMIC INDICATORS

OVERVIEW LAST PREVIOUS

GDP Growth 3.3% Jun16 -1.2% quarter

Unemployment Rate 26% Jun16 26.7% quarter

Inflation Rate 5.9% Aug16 6% monthly

Interest Rate 7% Sept16 7% daily

Balance of Trade 8562 Aug16 5223 monthly

Government Debt to GDP 50.1% Dec15 47.1% annual

Economic Indicators – SA Unemployment

Economic Indicators – GDP from Transport

Infrastructure statistics for non-scheduled aviation

(CAASA)

• Non scheduled commercial – sales of domestic produced

air transport services = R17.1 Bill (incl support services)

• Gives rise to economy wide sales of R45Bill.

• 19% growth in movements on non-ACSA airports over last 5

years. Its starting to grow – what are you doing to become

part of it?

• Policy makers may not understand the drivers and

importance/contribution of this sector and needs to be

educated.

The 9 Point Plan

Point 9: State reform and boosting the role of

state-owned companies, information and

communications technology infrastructure or

broadband roll-out, water, sanitation and

transport infrastructure

Responsible Departments:

• Telecommunications and Postal Services

• Water and Sanitation

• Dept of transport

From the NADP

The following initiatives have been identified to help give effect to

the guiding principles over the next five years:

1. Integration of airport network planning into transport and spatial

planning coordination structures

2. Formalisation of selection processes for international, “regional-

international” and national airports, and pre-approval process for

green-field airports

3. Mechanism to reserve land for key long-term airport requirements

4. Development of a preferred option to provide for non-scheduled air

services, general air services, flying training, adventure aviation

and non-commercial aviation within the national airport network

5. Development of a knowledge management system and DOT

capacity to inform airport network planning

From the NADP (cont’d)

6. Development of airport planning technical capacity at a national

and provincial government level that can support individual airport

planning

7. Development of a detailed guide to support airport development

and planning within their surroundings

8. Exploration of potential mechanisms to involve the private sector in

airport planning and design

9. Joint identification with relevant entities of the most viable

approach to securing funding to support airside safety and security

compliance for airports

10. Collaboration to create networking and information sharing

platforms for airport designers and planners

Rural Airport Development Why not?... As long as we remain remote, we remain suppressed as far as our

potential. —Co-chair, Okanogan Area Alliance 2005 Committee

Our airport was invisible until I needed it. —Neo-natal Emergency Medical

Airlift Patient

“Air transportation is the preferred choice for business and industry decision makers in the 21st century,” Perdue said. “Our economic development efforts will benefit greatly from accessible rural airports throughout Georgia.” Gov. Purdue (Georgia State), SMALLBIZSURVIVAL.COM, JUL 2006 STUDY REFERENCE: DETERMINING INFRASTRUCTURE NEEDS FOR RURAL MOBILITY: FUNCTIONS AND BENEFITS OF RURAL AIRPORTS IN WASHINGTON. By Jon Newkirk and Ken Casavant, Department of Agricultural Economics Washington State University. Prepared for the Aviation Division Washington State Department of Transportation, July 2002.

Rural Airport Development

1. Enhanced Quality of Life

Flights utilizing rural airports serve the

recreation, family, community, economic

development, business and commerce, law

enforcement, national defence, emergency

and disaster response, medical and basic life

support, policy access and development, and

other vital interests of rural communities. While

difficult to quantify, an overarching benefit of

rural airports is that the quality of life in rural

communities is enhanced.


2. Access to Specialized Professional Services In today’s economic environment, rural communities cannot stay

isolated and still hope to survive.

To maintain economic viability, rural communities must maintain

access to urban centres for banking, commerce, law, engineering,

medicine, government, and other specializations.

Many businesses will not consider moving to a community if it

does not have an airport.

Air access is important to attend hearings, for contractual

negotiations, solving engineering problems, etc., and for securing a

part or piece of equipment needed for local economic activities. Time

is often our scarcest commodity, and air transport is critical.


3. Improved Quality of Health Care

Air ambulance service from rural airports to

urban medical centres has become routine.

Not having an airport provides a serious

impediment to quality medical care for rural

residents.

The routine nature of these flights should not

obscure the fact that the flights are often a

matter of life-and-death for the patients.

The trend of specializations concentrating in

urban centres is expected to continue.


4. Effective Response to Disasters

Rural airports are key facilities for disaster and

emergency response.

Airports are also critical in the use of helicopters

for disaster and emergency response. Airports

are places where flight and landing procedures

and activities are known and approved, and

where parking areas for support vehicles and

emergency personnel are available.


5. Support for Local Business The support of local business is greater than what it appears to

be on the surface. Aircraft used for businesses-related

activities is one of the most common uses of rural airports.

An aircraft is used when time is critical. Time can be critical in

many different situations. For example, when a piece of

equipment breaks down at a manufacturing plant, the entire

operation might be suspended. The more “down time” at a

plant, the less revenue accrues. Airplanes using rural airports

regularly bring time-critical parts to local businesses.


6. Improved Ability to Petition Government The ability of rural residents to participate in critical policy

forums is another benefit of rural airports.

Rural residents have used their airport as a “portal” to visit

major centres.

Representatives, and state administrators have flown into

rural communities to collect information, tour disasters, and

view critical projects. Without the ability to land near the

community, most of these visits would not take place. Time is a

critical commodity for elected officials, as well as for state

agency administrators.


7. Community Life Enriched Airports make their communities stronger. Having an airport as

a focus of a community activity is a plus for that community.

Rural airports can support a wide range of aviation-related

activities, from basic pilot training to maintaining instrument

flight proficiency using locally based aircraft for family

reunions, show political candidates and doctors the

community, provide scenic flights, bring an injured neighbor

back from a distant car accident, provide rides for area

children, etc. Airplanes are used for recreation (the “joy of

flying”).


8. Critical Asset for Economic Development In most rural communities, the probability of economic growth

without an airport is very low. Many firms, when looking for an

expansion or relocation site, require an airport. Rural airports

provide both a focus and a support for economic development

activities. Many rural airports offer reasonably priced space for

business expansion, in addition to the space necessary for

runways, taxiways, and related facilities. Rural airports also

provide access to urban centres where banking, consultants,

suppliers, and a myriad of other necessary professional

services and distribution centres are located.

Also CAASA quote: “Rapid transport of decision makers”


9. Improved Sense of

Wellbeing

A surprising benefit of rural airports is

the improved sense of well-being that

they bring to the residents of rural

communities.

As one person in Omak (rural USA) said, “Our

airport is a sign that we are a progressive

community; we are up-to-date.”

Opportunities in SA for further development Polekwane

KMIA 3 with International Status!

Pilansberg

Mafikeng, Mthatha, Plettenberg Bay and many other

underutilised existing infrastructure.

“Its already there – why don’t you use it?”

Need vision and coordination to unlock potential (The

common denominator for nearly all under utilised rural

infrastructure)

• Need focus – not a municipal official with another

portfolio.

• Provinces must drive efforts. It has to become KPI’s.

• Community involvement (PPP model), SMME’s, etc.

END

Thank you

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