COMPANIES ACT 2009 WORKSHOP

The Director of Industrial Relations and Social Policy at FSE & CC is hosting a workshop on the new Companies Act 08/2009.

COMPANIES ACT 08/2009 WORKSHOP
Date: 1st March 2011
Time: 08:00 am - 04:30pm
Venue: Royal Villas

In 2009, Swaziland saw the commencement of the new Companies Act, which repealed the almost century old Companies Act 1912. This was wisdely viewed as a step in the right direction by the industry owing to the development and requirements of business transactions and in everyday commerce.

The new Companies Act has 386 sections compared to the repealed Act's 219 sections. This comprehensive review has introduced new concepts and extended liabilities that were not previously in existence. These changes have had an impact in inter alia sectors such as banking and the accounting sectors.

No sooner had the new Act commenced did its practical application raise concerns. Glaring contradictions emerged and eith the advent of the Constitution of Swaziland, it became doubtful whether some provisions of the Act would pass Constitutional scrutiny.

There is no denying that the new Act partly addresses some of the demands of modern commerce and business transactions. What is doubtful is whether the Act is comprehensive enough to deal with contemporary trends in the ever evolving global market.
In light of the above concerns and doubts, and being sensitive to the needs of the business community in Swaziland, FSE & CC has invited Professor John Kiggundu whom the Governemnt of Swaziland had contracted as Legal Trade Advisor during the draft of the new Act in 2004.

OBJECTIVE

The objective of the workshop is to highlight the salient provisions of the Act and to make a case for reform.

COST
Individuals - E 2 500
Group (3 - 6 participants) - E 2 300/pp
Group (7 upwards) - E 2 000/pp

All affected parties, including but not limited to: CEO's, Finance Directors/Managers, Legal Advisors, Company Secretaries, Attorneys, Compliance Managers, Corporate and Strategic Managers, Business/Company Owners and Board Members, Law Students, Accountants, Auditors, and Bankers.

To register, please contact Nancy at nancy@business-swaziland.com or call 2404 0768 / 2404 4408.

Director,
Industrial Relations and Social Policy

Three FSE & CC Members Giving Back to Community

Three FSE & CC members, The Mswazi Observer (Media), Standard Bank (Finance) and Macmillan Publishers (Service) began a campaign aimed at making the world a better place for orphans and vulnerable children (OVSc) in Swaziland. The Shoe Collection Campaign has a simple objective: to provide shoes, an essential part of a child's school uniform, to children in need.
A donation by Stanlib of E5 000 towards the campaign last Friday came at the best time as we are approaching the winter season. Although a small donation, it is encourgaing to see a financial institution commiting itself to developing human capital in Swaziland, something the country as a whole should befocusing on.

To read the full article, click here.

AM CONSULTANCY WIN GLOBAL AWARD

What does AM Consultancy do?

AM Consultancy specializes in implementation, support and training of computerized financial systems. Our system include as well as full accounting software, payrolls, manufacturing, service industries, customer relationship management to name a few. We implement system from small companies to large, with the majority of companies in Swaziland using our services. Our company has been in business in Swaziland for the last 20 years we also have clients in Mozambique, Malawi, Zambia and South Africa. We have a large team of qualified consultants based in Swaziland and over 24/7 support when required

Please tell us more about the ACCPAC Awards

The awards are held annually and although we normally receive an award, gold or silver we have only received this particular award for Best Achiever Africa twice before in 2005 and 2008. The awards are not only based on ACCPAC Sales but also the support we give our clients.

Where were the Awards held?

At Champagne Sports in the Drakensburg in South Africa

What are some of the companies/countries competing with AM Consultancy?

All African companies, including Kenya, Zimbabwe, Zambia, Mozambique, Lesotho, Malawi. There are over 300 ACCPAC dealers in Africa. A very interesting static is that AM Consultancy has sold more ACCPAC per capita than anywhere in the world.

What does the Award mean for the company?

The award means a lot to us, we work very hard and it is always nice to be recognized for this. However none of this would be possible without our hardworking team of consultants and the support of our loyal clients

Africa Telegraph: Economics

Selected News Events for Feb 7 - 14, Standard Bank Group: Economics - Africa Telegraph

Egypt

Cairo – Since the overthrow of President Hosni Mubarak, Egypt’s military has taken over the country. The military said that it would be in charge for a temporary period of 6-m or until the end of elections .Elections are scheduled for Sep 11 but the military has neither affirmed this nor given another timetable for elections. The military was holding talks with activists at the forefront of the revolt that ended Mubarak's 30-y rule to reassure them of their commitment to democracy and a smooth and orderly transition of power. Meanwhile, Egypt’s Muslim Brotherhood intends to set up a political party, which it could not do under the rule of Hosni Mubarak. (Sources: N24,RFI, 14/02 )  

Ghana

Accra – Ghana’s inflation increased to 9.1% y/y in Jan 11 from 8.6% y/y the previous month. Both food and non-food inflation increased in January to 4.8% y/y  and 11.8% y/y from 4.5% y/y and 11.2% y/y in Dec 10 respectively. (Source: BOG, 09/02)

Mauritius

Port Louis – The year-on-year inflation for Jan 11 stood at 6.4% from 2.5% in Jan 10 and 6.1%  in Dec 10. Non-food inflation increased to 6.6% y/y from 6.1% y/y the previous month. Transport inflation, a key driver in the non-food component, stood at 10.3% y/y in Jan 11 from 7.2% y/y the month before. (Source: CSO, 11/02)

Tanzania

Dar es Salaam – The government plans to expand sugar production targeting the huge East African market. The Minister for Agriculture, Food Security and Cooperatives, Jumanne Maghembe, said the government has set aside about 40,000 hectares of land for the Southern Agricultural Growth Corridor of Tanzania project that should take off before May this year. The project was first introduced at the Africa World Economic Forum in Dar es Salaam in May 10.It aims to stimulate major investments in commercial agriculture in southern Tanzania, Zambia, Malawi and DRC in ways that deliver direct benefits to smallholder farmers and rural communities. (TC, 13/02)

Inflation increased to 6.4% y/y in Jan 11 from 5.6% y/y in Dec 10, mainly attributed to increases in food and fuel prices. (Source: NBST, 15/01)

Uganda

Kampala – Data from the Uganda Coffee Development Authority (UCDA) shows that coffee export volumes for Jan 11 fell by 18.3% to 215,180 60-kg bags from 263,014 60-kg bags in Jan 10. Earnings from coffee exports in Jan 11, however, were 19.2% (USD29.98m) higher than in Jan 10. The UCDA expects coffee exports to be at about 185,000 bags in Feb 11 and anticipate better prices mainly due to tight supply of Arabica coffee and low global stock, which is expected to support higher prices. (Source: UCDA, 14/02)

Zambia

Lusaka –Zambia’s Mining Minister, Maxwell Mwale said that the expansion of some of the country’s mines is likely to elevate copper production to 850,000MT in 2011 from just under 750,000MT in 2010. (Source: CNBC)

Average Lending Rate

Botswana – 11.0

Ghana – 27.6

Kenya – 13.9

Malawi – 17.3

Mauritius – 7.1

Nigeria – 15.7

South Africa – 9.0

Tanzania – 14.8

Uganda – 20.1

Zambia – 19.4

To see past reports, click here. 

How To Write A Great Business Plan

Exerpted from: William Sahlman, Harvard Business Review, July - August 1997

If you want to speak the language of investors - and also make sure that you have asked yourself the right questions before setting out on the most daunting journey of a businessperson's career - I recommend basing your business plan on the framework that follows. It does not provide the kind of 'winning' formula touted by some current how-to books and software programs for entrepreneurs. Nor is it a guide to brain surgery. Rather, the framework systematically assesses the four interdependent factors critical to every new venture:

The People - the men and women starting and running a venture, as wekk as the outside parties providing key services or important resources for it, such as its lawyers, accountants, and suppliers.

The Opportunity  - a profile of the business itself: what it will sell and to whom, whether the business can grow and how fast, what its economics are, who and what stand in the way of success.

The Context - the big picture: the regulatory environment, interest rates, demographic trends, inflation and the like. Basically, factors that inevitably change but cannot be controlled by the entrepreneur.

Risk and Reward - an assessment of everything that can go wrong and right, and a discussion of how the entrepreneurial team can respond.

For the full article in pdf, click here.

Learning from the Germans

A recent  article on The Economist talks about the German Economy, and specifically small German companies, and how they optimised globalization to their advantage by finding niches and developing good outsourcing practices.

From low unemployment rates to conservative mortgage practices, from maintaining high exports even as China's rises to producing goods in niche industries that the growing Chinese market wants, and generous backing by the governement, the Germans have emerged as the strongest country in the G7 in the past decade.

To read the rest of the article on The Economist, please click here.

Sources: Freakonomics, The Economist

Business Highlights

A meeting of art and business - local bead artists under Litsemba Mtiya Threads collaborated with New York born author Gail Masondo on bookmarks for her recent book, "Now This Feels Like Home". The book will be launched locally in Mbabane next week Thursday.

Goat milk and cheese now available at Pick n Pay - currently only two local suppliers AD Enterprises and Tisuka Taka Ngwane will be selling to the retailer Pick n Pay exclusively.

Youth Enterprise Fund helped establish 399 youth businesses in 2010 - extensive education countrywide in collaboration with the Swaziland National Youth Council and Tinkhundla Youth Commitees about the Fund saw an increase in the entrepreneurship spirit among the under-30 cohort of the population.

Matata Group to open 4 new Spar outlets by the end of the year 2011- these will include new branches in Manzini, Mbabane and Sidvokodvo.

Read Full Stories on The Swazi Observer and Times of Swaziland

COURIER COMPANIES FEEL THE BRUNT OF FUEL PRICE HIKE

Courier companies have been adversely affected by the increase in fuel prices effected yesterday.

The price of petrol increased by 70 cents per litre while that of diesel increased by 80 cents, making these new prices the highest since 2008.

Some of the courier companies will practise what is known as fuel surcharge, which means once a hike in fuel prices is affected by government, it is passed on to the consumer while other companies absorb it wholly.

General Manager - Transport of Interfreight (PTY) LTD Veli Dlamini said his company usually absorbed 40% of the total price hike while the remaining 60% was passed on to the consumer.

BUSINESS ETHICS: Why they are important in SME development

By: Mduduzi Lokoftwako

Owning a business means having to deal with the human aspect and all that comes with it. Often business are faced with difficult situations that they do not know how to handle. When running a small business, some of the challenges involve handling confidential information; controlling behaviour with both internal and external customers; and abiding to the law and legislation.

Therefore, ethical principles are ground rules for decision making in a business – not just factors to consider.  In simple terms, ethics are defined as a code of values which guides our choices and actions and determines the purpose and course of our lives (Ayn Rand). Ethically, it is preferable to lose than to lie, steal, or cheat in order to win. People who are unwilling to lose are often willing to do whatever it takes to win, i.e. to act an unethical manner. However, this approach to dealing with difficult situations can destroy a business for good.

Today, the importance of business ethics is on the rise across the world and many companies realise that in order to succeed, they must earn the respect and confidence of their customers. Like never before, companies are being asked, and encouraged, to improve their business practices to emphasise legal and ethical behaviour.

Companies, both large and small, and sole-traders, are held increasingly accountable for their actions, as demand for higher standards of social responsibility in business. Society needs to work hard at producing a culture of ethical behaviour, accountability and norms which will benefit the entire society. Business thrives when society thrives.

To portray good ethics, one should make ethics a part of their everyday business. Good ethics could also mean helping others make good choices be a role model and most importantly, play by the rules. Business ethics in the workplace is about prioritising moral values and ensuring behaviours are aligned with those values. However, most of the ethical dilemmas faced by an entrepreneur are highly complex.

When the topic of business ethics comes up, people are quick to speak of the Golden Rule; “Do unto others as you would have them do unto you”. But when presented with complex ethical dilemmas, most people realise there is a wide “grey area” when trying to apply ethical principles. Business problems are often complicated. Gross violations such as fraud and theft can easily be judged and dealt with, but more subtle issues, such as misleading consumers, are far more complicated and require a great deal of discretion on the part of the business owner.

Developing a code of business ethics and conduct will not stop unethical behaviour, but will give people something to think about, a measurement against which to assess their behaviour. The code of ethics will serve as a framework for decisions you make, as well as to guide your stuff. The code can help business in the following ways:

Ø  Define accepted/unacceptable behaviours;

Ø  Promote high standards of practise;

Ø  Provide a benchmark for staff to use for self evaluation;

Ø  Establish the identity of your business; and

Ø  Establish a framework for professional behaviour and responsibilities.

Businesses can develop a written code of business ethics that guides the decision making and actions in your company. The reputation and track record for ethical behaviour and integrity are vital for establishing the trust that is the basis for all successful relationships – with customers, employees and the community.

Individuals acting in a professional capacity take on an additional burden of ethical responsibility. Professional associations have codes of ethics that prescribe required behaviour within the context of a professional practise such as medicine, law, accounting, or engineering.

Ethical business practices include assuring that the highest legal and moral standards are observed in relationships with people in the business community. This includes the most important person in one’s business – the customer. Short term profit at the cost of losing a customer is long term death for business.

A reputation for ethical decisions builds trust in a business among business associates and suppliers. Strong supplier relationships are critical to a successful business. As a result one has to consider the problems that may arise if from failure to supply what the customer needs at the time that they need it. 

Entrepreneurs and Managers as Role Models

You, as the entrepreneur and manager, are the role model for your staff. If your behaviour includes lying to customers, taking money out of the cash register, taking home some of the inventory of supplies, or even bribery, you should not be surprised if your employees follow your lead. Your value system affects your actions, which in turn influences others.

Therefore, entrepreneurs and managers have to understand and adhere to business ethics in order to secure long-term relationships with suppliers, customers and employees. It is from this point of view that the FSE&CC provides capacity building for SMEs to help them reflect on their values and belief systems and see how they influence their behaviour; see how their business ethics impacts on others; behave ethically in business; and deal with situations where their values and ethics are in conflict.

Reference: The Swaziland SME business Toolkit by the Federation of Swaziland Employers & Chamber of Commerce (FSE&CC).

The writer is the Business Development & Training Officer of the Swaziland Employers and Chamber of Commerce. Comments on this article may be sent to fsecc@business-swaziland.com

Business Highlights

Times of Swaziland
Central Bank of Swaziland Quarterly Report September 2010 - the construction industry, which contributes 30% to the GDP, contracted by 3.1% . Causes include a reduction in exports, increased competition and a reduction in FDI all due to the larger global economic slowdown.
In the same report, earnings by the textile industry doubled as export receipts increased from E71.5 million to E141.9 million, thanks to the AGOA market. Beef exports to the EU also incrased by 90%.


The Swazi Observer
Fuel prices went up last night with petrol increasing by 70 cents, diesel by 80 cents, and parrafin by 60 cents. A hike in public transport prices is expected as a reaction to higher fuel prices.
Following lack of allocations by the king during his speech at the opening of parliament last Friday, plus the bleak outlook concernign IMF funding, significant bugdet cuts are expected from Minister of Finance Majozi Sithole's budget speech.

Welcome!

FSE & CC is the home of business in Swaziland. Founded in July 2003 as merger with the Chamber of Commerce, the organisation offers a wide range of services and products designed for the corporate sector in Swaziland.

Mission Statement
1. Effectively engage in and influence policy decisions affecting the private sector in Swaziland
2. Provide efficient, relevant, professional and quality services for the sustainable growth and development of the business community
3. Ensure that the government and other stakeholders understand and and appreciate the role and contribution of businesses to the economy

This blog is a portal for sharing global news relevant to the Swazi economy, events hosted by FSE & CC, and opportunities available to the business community.