Construction World October 2017

The business magazine for the construction industry

FEBRUARY 2017 OCTOBE 2017

WORLD

CR O WN

P U B L I C A T I O N S B I R O ONCE IN A LIFETIME project at Sol Plaatje University AFRISAM is into

building new life

HOPETOWN bridges

PPPs are rapidly FUELLING AFRICAN INFRASTRUCTURE

CONTENTS

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04

38

21

04 Why structural engineers should move to the cloud It is perhaps time to do all planning online. 06 CESA Engineering Excellence Awards 2017 The winners in this year’s consulting engineering competition. 10 Copyright in SA law for built environment professionals In a hyper-connected world copyright is crucial. 14 A new wave of change for African real estate Laying the foundation for a new way forward.

16 Bucking major retail trend Mitchells Plain shopping centre is performing well.

21 Walvis Bay gets ready to welcome Dunes Mall The Namibian town will welcome the 27 500 m 2 mall soon. 24 Old paper mill’s new lease on life Sika assisted in the rehabilitation of concrete in Mpumalanga. 27 Houses for the people Raubex Building and AfriSam work together in Clayville. 28 Building Sol Plaatje’s library The opening of this library will be an important milestone. 34 Economical alternative for Hammanskraal project Massive savings for Moretele Local Municipality in North West. 38 A giant stitch closes Mt Edgecombe gap Two and a half years on at the Mt Edgecombe Interchange project.

44 Scotland’s Queensferry Crossing A major achievement for Arup in Scotland.

REGULARS

04 14 20 26 28 47 48

Marketplace

ON THE COVER

Property

The passage of motorists and pedestrians over the bridges north of Hopetown is about to get safer. This is due to a South African National Roads Agency (SANRAL) bridge widening project currently underway by contractors Botes & Kennedy Manyano with performance-based concrete mixes designed by AfriSam The R88-million project – which began in mid-2016 and is on track for completion by the end of February next year – is focused on the 312 metre Hopetown bridge (B2482) that crosses the Orange River just north of the town en route to Kimberley. Read the articles on pages 18 and 19.

Projects & Contracts

Housing

Project Profile

Equipment

Products & Services

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COMMENT

In the last two weeks of August, 1 600 senior executives from various fields (building, manufacturing, retail, wholesale and the motor trade sectors) were surveyed. I here compare the third quarter to the second quarter. If one has to see a positive in these results, it will be that business confidence did not reduce further. The improvement can be attributed to the fact that the period had no dramatic political event. In the preceding period, which saw the collapse to 29 points, the cabinet was reshuffled which in turn led to a credit downgrading. Still, 35 is a long way from even a neutral 50. Two things are worrying: the outlook is generally pessimistic, and of the five sectors that were surveyed, four of them did not even post a 50 point reading. In the second quarter of the year, the RMB/ BER Business Confidence Index (BCI) plunged from 40 to 29 (100 being utmost confidence). In the third quarter this index rose with six to 35. This means that almost seven of every 10 respondents are unsatisfied with current business conditions.

Building does not function in isolation As the building sector does not operate in a vacuum, but influenced by each of the other four sectors that were surveyed, it is beneficial to take a look at each of the sectors individually. Manufacturing, seen by most as one of the only ways to entrench South Africa’s position as an economic powerhouse in Africa, rose from an alarmingly low 16 to 27 – still massively low. The motor trade sector lifted from 11 to 19. Retail confidence rose from 35 to 38, while the wholesale sector sank from 49 to 48. Unlikely rise In the building sector the confidence rose from 36 to 44 – against expectation. This means that this sector’s confidence is now on the level it was for the last 18 months. Realistically an increase in this sector’s confidence level is unlikely as it finds itself in an environment where the South African economy is not going to experience fireworks: domestic demand is weak, business activity is subdued, profitability is weak because of increased competition and the political situation remains uncertain. Researchers say the current economic climate is indicative of GDP-growth that will be around a mere 1%, further influenced by limited private sector investment and negative job growth.

Our website, www.constructionworldmagazine.co.za is rapidly growing. This website, with subsections for marketplace, property, environment, projects and contracts, equipment and products and services, also house

the latest magazine in FlippingBook format. From this website you can easily navigate to any of the other eight industry specific magazines that Crown Publications offer.

Wilhelm du Plessis Editor

@ConstWorldSA

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

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The views expressed in this publication are not necessarily those of the editor or the publisher.

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MARKETPLACE

Why STRUCTURAL ENGINEERS should MOVE to the CLOUD

When the first laptops were created in the 1980s as a portable alternative to home computers, original models such as the Osborne 1 were bulky, heavy and largely impractical — a far cry from the convenient models of today.

required to purchase the software again with each new update. Saving costs by not updating leaves your system vulnerable to cyber attacks, as seen with the WannaCry ransomware attack in May this year. With the cloud, software updates are automated so that you are using the latest version as soon as it is fully functional and rolled out by the software provider. Requiring no installation or plug-ins that often slow systems down, updates to the cloud are completed without interruption or downtime. Cloud software is a monthly subscription service that can be tailored to include the applications needed for your business, which is a model not conventionally used in structural engineering. Fortunately, structural engineering software providers such as SkyCiv are adopting this model to improve the effectiveness of software without pricing out growing businesses and project freelancers. SkyCiv offers tools like the beam, truss, frame and shaft calculators, as well as design check software which can be included in the subscription. The added value is not having to commit vast sums of money to obtain the software or pay installation and ongoing maintenance costs. In addition to having the choice of a monthly plan for a fraction of the price

Similarly, cloud computing has developed significantly in the past decade to allow structural engineers to work on projects with complete flexibility. Here, Sam Carigliano, CEO of structural engineering software specialist SkyCiv, explains. Cloud computing allows users to customize applications and access remotely stored data and services from any device with an internet connection. Those working in a data-intensive, project based industry can benefit from using shared computing processing resources like the cloud to shape and bring their ideas to life. This is particularly true for structural engineering, which has until recently experienced disparities between modern ways of working and more traditional approaches to software. As concepts

such as remote working and collaborative projects become increasingly common in the industry, the limitations of traditional structural engineering software present challenges to engineers. The core challenge for engineers is that projects carried out within this sector involve collaboration between various people, often spread out across various locations, using a variety of different systems. With project times varying from a few months to several years, not all companies or freelance engineers have the upfront capital expenditure to pay for software ahead of a project. Licensing software costs can price out many small businesses and freelancers. This is mostly because, when updated versions are released, engineers are

In addition to having the choice of a monthly plan for a fraction of the price of software licensing, companies can scale up and down their system depending on its computing needs.

of software licensing, companies can scale up and down their system depending on its computing needs. This eliminates the need for large investments in infrastructure that may only be needed on a temp- orary basis. While structural engineering relies on knowledge of applied mechanics, materials science and applied mathematics, SkyCiv’s structural engineering software offers businesses convenience and a platform to integrate its networks. Although the Osborne 1 was the first portable device that could bundle several software applications together, the weight of the device made it impractical. Just as technological developments have allowed laptops to now become a valuable ally to many workers, the development of cloud-based software can help structural engineers bring greater ease and flexibility to their design concepts. 

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Visionary Client of the Year.

Engineering Excellence with a value between R50-million and R250-million.

CESA ENGINEERING Excellence Awards 2017 Consulting Engineers South Africa (CESA)

Acid Mine Drainage project for TCTA. Another commendation was awarded to Royal HaskoningDHV for Provincial Main Road 577 for the KwaZulu-Natal Department of Transport. The category for Engineering Excellence with a value between R50-million and R250-million was won by Neil Lyners and Associates for the L’ormarins Hydro Power Project. Commendations were awarded to Aurecon for the Stortemelk Hydropower Plant for Stortemelk Hydro (RF) Property Limited and Bosch Projects for Special Maintenance of N2 Section 11 for SANRAL. The category for Engineering Excellence with a value less than R50-million , was won by Fellow Consulting for Malapa Fossils for Wits University. Bigen Africa received a commendation for the Water Reclamation Plant at the BRP Mine for Royal Bafokeng Platinum and Aecom also received a commendation for the Plankenburg Main Outfall for Stellenbosch Municipality. In the category of Best International Project , sponsored by the Built Environment Professionals Export Council (BEPEC), a commendation was awarded to Aurecon for the Mzingani Sea wall in Zanzibar. Nyeleti Consulting won the Business Excellence category with Knight Piésold receiving a commendation. Bigen Africa won the Mentoring Company of the Year , sponsored by Bosch Holdings. In an effort to promote mentorship of young engineers CESA recognises the contribution Mentors make to the industry and the future of the profession. Cornelius van der Wath from Matleng Energy Solutions is the Mentor of the Year . Tongaat Hulett is the Visionary Client of the Year .

Lynne Pretorius, President of CESA states, “Consulting Engineers are at the forefront of Infrastructure development and these awards bear witness to the pivotal role that Consulting Engineers, as trusted advisors and partners to our clients, play in the delivery of services to the people of South Africa and the African continent.” Winners In order to promote the Consulting Engineering industry to young professionals, CESA recognises the contribution young engineers make to the industry and to the future of the profession. The winner is afforded an opportunity to attend the International Federation of Consulting Engineers (FIDIC) Infrastructure Conference. Airports Company South Africa (ACSA) sponsored the Young Engineer of the Year Award. The winner in the category of Young Engineer of the Year is Jabulile Msiza from Jones & Wagener with Catherine Blerch from Aurecon and Pieter Crous from SMEC both receiving commendations. The category for Engineering Excellence with a value greater than R250-million was won by Aurecon for the Mall of Africa for Atterbury Property. Aecom was awarded a commendation for the supported by Aon South Africa hosted the who’s who in the engineering industry at a gala dinner held at Vodaworld in Midrand recently to celebrate the 2017 CESA Aon Engineering Excellence Awards. These Awards recognise outstanding achievements in the engineering industry celebrating innovation, quality, outstanding workmanship and professionalism.

UWP Consulting was announced as the winner of the CESA Job Shadow Initiative with Infraconsult as the 1st runner's up and Bigen Africa as 2 nd runner’s respectively. CESA's Eastern Cape’s Port Elizabeth Branch was named winner of the Branch of the Year Award. 

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Movement is happening within African infrastructure, especially in the transportation sectors. Most recently, the Government of the Republic of Kenya launched a tender process to develop a PPP bridge and the Government of Rwanda have signed the concession agreement for the development of the new international airport in Rwanda, known as the Bugesera International Airport. These and many more PPP projects will be discussed and showcased at the 9 th Africa Public Private Partnership Conference and Showcase taking place in Cape Town from 23 – 24 November 2017. Project sponsors, financiers, multilateral development agencies, public and private sector players and insurance agencies will discuss ways to mobilise PPP projects in Africa, develop bankable projects and review best practice scenarios. Building on the success of last year, this year’s edition will include extended one-on-one meetings during the event, more industries, dedicated sector-specific breakaway sessions and more PPP project overviews and investable opportunities. Confirmed PPP Units to date are Kenya, South Africa, Tanzania, Ethiopia, Cameroon and Rwanda. The conference programme will focus on topics such as Standardising PPP Frameworks, Increasing Manufacturing and Industrialisation PPPs, Centralised Office Accommodation and Government Precincts, African PPP Units – Bankable Project Showcase, PPP Energy Projects, Hospitality and Tourism PPPs and include a debate about ‘Encouraging State-Owned Entities to Adopt PPPs.’  How PPPs are rapidly fuelling African Infrastructure

Engineering Excellence with a value greater than R250-million.

Engineering Excellence with a value less than R50-million.

Group Awards photo.

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MARKETPLACE

“The partnership-for-action conference saw an opportunity for policy-makers, academics and members from many organisations to share valuable information to help the transformation of policy development in Africa,” said Tamzin Hudson, advocacy specialist for Habitat for Humanity International. A common thread was the issue of gender inequality and the high priority it should take when working on land-governance related policy-making. “We need to address equal rights to ownership to land, and ensure that the land-policy framework that we develop, guarantees equal rights to all people, including women, who have been excluded historically from inheriting land in Liberia,” said conference attendee Ellen Pratt, the Commissioner of Land Use and Management with the Liberian Land Authority. Education and information are also paramount to ensure women are aware of their rights to land and the right to have their names on documentation. “Women need to have the right to bequeath land, trade land and cultivate land with the knowledge that the land belongs to them,” said Jacqueline Amongin, Uganda’s representative of the Pan African Parliament. Marc Wegerif has worked on development and human-rights issues in a range of organisations for over 25 years, and is currently other things) land-policy initiatives, including women’s rights to own land. They were part of a conference hosted by Habitat for Humanity’s Solid Ground Campaign in association with the Urban CSO Cluster of the Global Land Tool Network (GLTN) of UN-HABITAT, focusing on land governance and management in Africa. Influential women from across Africa gathered in Pretoria recently to share their findings on (among Women across Africa call for greater land-ownership rights

the Land Rights Policy Lead with Oxfam. Speaking on gender and women’s rights, at the conference, he pointed out that in communities where women have stronger land rights, there are lower levels of both of hunger and of violence against women. “With control over the land they depend on for their livelihoods, women are able to take more control of their lives. Women also play a vital role in the betterment of their families and communities, giving them secure land rights should be imperative,” says Wegerif. Land is essential to securing shelter, for agriculture for food security, for mobilising investments and for sustainable management of resources. “Including women in decision-making in land policy, and creating programmes that give women the necessary tools to secure land ownership, will address the challenges facing most African countries,” Hudson said. The conference took place in partnership with the Namibia University of Science and Technology (NUST), Habitat International Coalition (HIC), Pamoja Trust, the Huairou Commission, and Slum/ Shack Dwellers International (SDI). Stakeholders from multiple sectors came together to explore approaches to land governance for inclusive and sustainable development in Africa. 

Committed to investing in its people Bell Equipment Chief Executive, Gary Bell has made a commitment to increase the company's investment in the development of its employees so that the company can continue to grow and compete internationally.

Bell was speaking at a graduation ceremony at the Bell Equipment Training Centre in August where he congratulated 20 employees who have completed an Operations Management Development Programme under the auspices of the Production Management Institute of South Africa (PMI), as well as four who have completed a Fundamental Management Programme (FMP) through the UNISA Graduate School of Business Leadership. The company's Executive Manager: Manufacturing, Clive Hodgson was the guest speaker and explained the background to the PMI Operations Management Development Programme, which Bell introduced in 2008. "Around that time Bell experienced rapid growth of production volumes but was finding it difficult to bring in external supervisors and managers," he said. "As the only South African manufacturer with this level of complexity,

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COPYRIGHT IN SA LAW for built environment professionals

According to Legal Risk Advisor, Samantha Baleson of Aon South Africa, copyright law in South Africa is governed by the Copyright Act, 98 of 1978. “The Act provides protection against the unauthorised copying or reproduction of certain ‘works’. Infringe- ments of Intellectual Property (IP) or copyright are also dealt with in the Act and the main remedies which can be sought to obtain relief are an interdict and an award for damages,” says Baleson. Where does the copyright vest? “Copyright generally vests in the author of work except where the work is made by the author in the course of his/her employment, in which case the employer is usually the owner in terms of the In our increasingly hyper-connected world, seemingly unrelated events can have a profound impact on a business and professional career. It is crucial for professionals to stay informed and one such aspect to consider is copyright in South African law and how it applies to consulting engineers, designers, architects and the like. we found that many people we brought in struggled because they lacked an understanding of the Bell culture, our products and the unique way that we do things in our production and stores." At the same time the company realised that it had a strong group of employees on the shop floor with the required technical abilities and product experience yet had lacked the opportunity to pursue tertiary studies, which excluded them from applying for supervisor and managerial positions. The PMI development programme was born to enable Bell to grow its own timber and several groups have now attended the course and progressed in their careers. The PMI course runs for a year with lectures every Saturday, which has its challenges. "Many Supervisors would be coming off a third shift and walk straight into their class, or they would finish their lectures in the afternoon and go onto their overtime shift on the weekend. So it wasn't easy but the results have been incredible. The lowest mark that was achieved in the class was 64%. I also sat through many of the final presentations in terms of cost reduction and there were some great ideas," said Hodgson. For similar reasons Bell also put four Trainee Supervisors through the UNISA FMP. Hodgson said that this was quite challenging because "they were expected to work as Supervisors, work on shifts and study by themselves. There were no lectures. They had one contact session where they met with lecturers in Pretoria and got advice". In spite of this they also achieved outstanding results and all four went on to be appointed as fully-fledged Supervisors and are proving to be very successful. Thanduxolo Taboshe, a Supplier Quality Engineer based in the Bell Supplier Quality Team in Richards Bay, was announced the Top Student with the highest average in the class, as well as the highest average for the programme in KwaZulu-Natal. For his efforts he received a bursary from PMI to the value of R35 000. He will go on to the NQF6 Diploma in Operations Management and will attend PMI's public classes in Durban. 

contract of employment. For this reason, copyright vests in the professional practice or firm and not in the actual employee who created the document or drawing,” Baleson explains. “A client may use the copyright or intellectual property for the sole purpose of a project for which they have remunerated the service provider that created same. Ownership of the IP, however, still vests in the service provider, unless the agreement with the client stipulates otherwise,” she adds. The work, designs or presentations of built environment professionals such as consulting engineers, designers and architects often include design viewpoints and draft designs. “Although a client may be entitled to the use of copyright on the project for which they remunerate the professional, certain clients may attempt to use such principles and designs improperly to their own advantage while they undertake the work themselves and/or re-invite tenders based on these ideas of the professional,” Baleson poses a scenario. A practical example An architect and engineer put together the designs for a residential complex. The client and/or developer pay for the designs on that specific project and are entitled to the use of intellectual property for that specific project. The client then uses said designs for various other complexes without purchasing the copyright or intellectual property from the professionals. The problem is twofold: • The professional is at risk of being sued in terms of his/her designs for projects he/she wasn’t even aware of; • The professional is not remunerated for the use of his/her intellectual property. How do you protect yourself? Where the copyright is required by a client, it is recommended that the agreement between the client and professional contain a provision to the following effect: "The Professional shall not be liable (whether in contract or in delict) to the client or any other party whatsoever as a result of the use of the consulting engineers’ designs, drawings and specifications in any project or works other than those for which they are intended, detailed in this agreement, and the client hereby indemnifies the professional against any claim which may be made against him by any party whatsoever in any way arising out of the unauthorised use of such documentation for such other purpose as aforesaid." Professionals are also suggested to indicate that they should be adequately remunerated for their services before intellectual property ownership passes to the client. This provision could be as follows: "The Client retains the design rights and other intellectual property rights of all documents prepared by the Consultant upon full payment for the Services to the Consultant. The Consultant shall be entitled to use them and copy them only for the Project and the purpose for which they are intended, and need to obtain the Client’s permission to copy for such use." Professionals are advised to mark documents to the effect that copyright subsists in such documents. Suitable wording would be as follows: "Copyright vests in this document/drawing and no use or reproduction or duplication thereof may occur without the written consent of the author". In addition, the name of the copyright owner and the year in which

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the copyright came into existence, should be stated, for example, '©Topside Engineering (Pty) Ltd. 2017.' What some of the Standard Form Agreements say PROCSA: The consultant retains copyright of all documents and/ or designs prepared by the consultant for the project. The client has the right to the use and the benefit of the documentation produced for the sole purpose of its intended use on the project subject to compliance with the terms and conditions of this agreement. The client is entitled to all data and factual information collected by the consultant and paid for by the client. CIDB: Copyright of all documents prepared by the service provider in accordance with the relevant provisions of the Copyright Act (Act 98 of 1978) relating to the project shall be vested in the party named in the contract data. Where copyright is vested in the service provider, the employer shall be entitled to use the documents or copy them only for the purposes for which they are intended in regard to the project and need not obtain the service provider’s permission to copy for such use. Where copyright is vested in the employer, the service provider shall not be liable in any way for the use of any of the information other than as originally intended for the project and the employer hereby indemnifies the service provider against any claim which may be made against him by any party arising from the use of such documentation for other purposes. The ownership of data and factual information collected by the service provider and paid for by the employer shall, after payment by the employer, lie with the employer. FIDIC: The Consultant retains copyright of all documents prepared by him. The client shall be entitled to use them or copy them only for the works and the purpose for which they are intended, and need not obtain the consultant's permission to copy for such use. NEC: No provision provided. Copyright and your insurance cover Not all Professional Indemnity policies have the same wording and may contain a clause similar to the one below that may cover the insured’s breach of copyright subject to the terms and conditions of the policy. ‘The Insurers will indemnify the Insured for any claim or claims first made against the Insured during the Period of Insurance by reason of any inadvertent disclosure of the confidential information, or any inadvertent infringement of any patent or copyright or the inadvertent unauthorized use or inadvertent infringement of the systems or designs of others.’ “It is important to keep in mind that your intellectual property as a professional can be considered as a valuable asset to your business. As there are certain associated risks with same, the necessary precautions and wordings should be considered,” Samantha urges. “Proactive risk management is a vital business tool and is a process that is best undertaken with the aid of a specialist insurance broker and legal risk consulting service. “Having professional legal assistance for insured businesses as well as small, medium and large professional practitioners will greatly aid to assess your risk profile. It will also help to benchmark you against your peers, both locally and internationally, ultimately having a positive effect on managing any potential risks,” Baleson concludes. *Disclaimer: This article is for general information purposes only and does not constitute legal or other professional advice and should not be used as such. Always consult with your legal advisor or professional insurance broker for advice. 

Matthew Lilley, senior structural engineer and Katrine Lategan – project creation, both from Arup Buildings, believe that the PDP, which is recognised as the premier post-graduate property development course, has enhanced their knowledge of the financial and feasibility process side to property development. “I gained a significant amount of insight into detailed financial feasibility analysis as well as macro and micro economic drivers of property development across several countries. Looking at the various funding mechanisms – including risk analysis, it has given me a greater appreciation of the complexity of project development. I am now better placed to understand our clients’ and developers’ needs, particularly in today’s tough economic landscape, both global and local,” said Lilley. Lilley added: “Arup has always been committed to giving add-on value to their clients and I can now offer more holistic solutions as well as guide developers towards more recent drivers and changes in the development market place. The PDP has significantly enhanced my structural and civil engineering expertise”. Lategan said: “I believe this highly recommended programme has broadened my knowledge of the crucial elements required in property development. It was important to look at factors that different players, such as developers and financiers, consider critical to their activities. I am eager to use what I have learnt to best collaborate with clients, architects and other key players to create good and interesting projects for Arup. My passion has always been to improve our built environment and surrounds and how things are done. I now have the knowledge to not only make a project feasible, but to make a project great. As part of the programme, the delegates were split into groups and tasked with presenting a full property development proposal, which included design, financial feasibility and legal structure, to respected industry experts. The brief focused on integrating affordable housing and transit-orientated development principles for a highly desirable site situated in the Cape Town CBD. Arup shone at the gala dinner award ceremony as Lategan’s group took first prize, with judges complimenting the group on the slickness of their complete package, while Lilley’s claimed second, overcoming the disadvantage of having no architect on their team. As a global firm of designers, planners, engineers and technical specialists, Arup is committed to the continuous professional development of its team members.  Investing in development Two delegates from Arup recently participated in the Property Development Programme (PDP), a two-week intensive course run by the University of Cape Town Graduate School of Business in association with the South African Property Owners Association (SAPOA). From left: Matthew Lilley – Arup, Katrine Lategan – Arup, Justine Saloman – TUHF and John Holley – Flanagan & Gerard.

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Go for Gold tackles youth unemployment, education and skills development in under-privileged communities with its innovative four phase model that provides a fully integrated personal and professional developmental pipeline. Initially, Grade 11 & 12 learners are given the opportunity to boost their education with weekly extra lessons in maths, science, life skills and leadership development training. After matriculation, participants take part in a year-long internship with partner companies which provides them with exposure to the built environment and enables them determine their course of study the following year. An added advantage is that partner companies to get to know their bursary candidates before investing in their tertiary studies. The beneficiaries of the programme enjoy bursary support and the secure knowledge of guaranteed employment once they graduate. It is this holistic approach and sustainable long-term strategy that sets Go for Gold apart and ensures the programme’s high success rate for its beneficiaries and partner companies. dhk has been running a successful bursary scheme for many years, and the new partnership with Go for Gold will run in parallel with the company’s existing programme, supporting dhk’s commitment to development and transformation within the industry. Jacqui Barhouch, Associate and Head of Communications at dhk who spearheads the company’s involvement in the programme said, Forging future architects dhk has kicked off a new partnership with the internationally recognised non-profit organisation Go for Gold, with two beneficiaries from its award- winning education-to-employment programme joining the architecture company’s Cape Town design studio as interns this year.

Photo credit: Grant Payne

“With Go for Gold we’re able to make a meaningful difference in the lives of young people while opening up the world of architecture to students who may not have even been aware of this as a career option.” dhk is the first architecture company to partner with Go for Gold and the firm is challenging others to take part, “We want to encourage other built environment professionals to get involved with this programme and help build a pool of bright young talent,” said Barhouch. Go for Gold is approaching companies within the South African built environment to join the programme and make use of the its developmental pipeline to secure graduates for industry who are work-ready and have practical experience within the sector. As an NPO, Go for Gold is able to offer benefits that complement companies BBBEE requirements throughout its four phases and also boasts an enterprise development company, Uketha Investments, that benefits companies and future beneficiaries alike. 

Labour Force Survey Q2 2017 The results of the Quarterly Labour Force Survey (QLFS) for the second quarter of 2017, released by Statistics South Africa today, indicate that employment declined by 113 000 to approximately 16,1 million.

between Q1: 2017 and Q2: 2017. The largest employment losses were recorded in Gauteng (143 000) and Eastern Cape (26 000), while Limpopo and KwaZulu-Natal recorded employment gains of 32 000 and 29 000 respectively. The official unemployment rate remained unchanged at 27,7% quarter-to-quarter, but it increased by 1,1 percentage points year-on- year. The highest annual increases in were recorded in Eastern Cape (5,8 percentage points), Mpumalanga (3,5 percentage points), Northern Cape (3,1 percentage points) and Free State (2,2 percentage points). Western Cape and North West were the only provinces that recorded year-on- year declines in the unemployment rate. Young people aged 15-24 remain vulnerable in the labour market with an

However, the number of job-seekers also declined by 37 000 to approximately 6,2 million resulting in the unemployment rate remaining unchanged at 27,7%. Over the same period the absorption rate (employment to population ratio), which is a proportion of those who are employed among the population aged 15-64 declined by 0,4 of a percentage point to 43,3%. The net quarterly employment decline of 113 000 in Q2: 2017 was driven by six of the ten industries. The largest decreases were recorded in Construction (110 000) and Agriculture (40 000). However, employment gains were observed in Trade (58 000), Finance (17 000), Manufacturing (10 000) and Utilities (2 000). The number of employed persons decreased in five of the nine provinces

unemployment rate of almost 56% and absorption rate of 12%. Among those in this age group, 32,2% are not in employment, education or training (NEET) – this is approximately 3,3 million young people. The expanded unemployment rate which includes an extra 3,1 million persons who were available to work but did not look for work during the reference period increased by 0,2 of a percentage point to 36,6%. This is approximately 9,3 million people aged 15-64 who wanted to work and were available to work but their labour was not utilised. 

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UWP participated for the 10 th time in CESA’s Job Shadow initiative in July, hosting 177 learners at events around the country. In August 2017 UWP launched ‘Nurture a Girl’, a project that is already bringing fresh perspective to the lives of 62 teenage learners and has the potential to change the lives of many hundreds more. 'Nurture a Girl' started by sponsoring 50 female learners in need of support at selected high schools around South Africa, one of them a special school, for a year. “We are inviting other companies and individuals to come on board and help us expand the programme,” says Nonkululeko Sindane, CEO of UWP Consulting. “Just one girl sponsored is one more opportunity for a better future, one more chance to give a teenager the strength, courage and advice to get a good education and make a difference in the world.” Already this call has been heeded, with 62 girls now involved in the programme thanks to sponsorships received from others and further growth is expected. The beneficiaries are being given structured opportunities to attend workshops and presentations, receive career advice and mentorship, and to learn basic skills over the year. Claudia Picarra, marketing manager at UWP Consulting, points out that ‘Nurture a Girl’ is not just about the direct beneficiaries, but about bringing change within schools and their communities. “As our relationships develop with the girls we will find ways to meet individual needs that may go beyond the scope of the programme. We will also seek opportunities to provide further assistance to the schools that will benefit all learners. “This is not just a UWP programme. The more we can involve other businesses and professionals across the spectrum, the more we can add value and change lives.” UWP Consulting has participated in CESA’s Job Shadow initiative every year since inception 10 years ago, giving many secondary school learners around South Africa a taste of engineering as a career. This year UWP HYPE (Helping Young Professionals Excel), a network of employees younger than 35, invited learners from 13 schools at its offices in Johannesburg, Pretoria, East London, Mthatha and Cape Town. Taking a lead in youth development Consulting engineering firm UWP Consulting has positively impacted the lives of hundreds of high school learners in recent years through mentoring programmes that help them make sound choices in the transition from school into adulthood.

The learners became engineers for a day, following the activities of professionals in the office and on site, and participating in engineering challenges such as bridge and reservoir construction. UWP won first place in CESA’s 2017 Job Shadow poster competition for the second time. “If we can ignite a passion for engineering in just a few young minds, we will have succeeded in our aim,” says Sindane. In other ongoing initiatives, UWP provides practical training opportunities for tertiary students towards obtaining their qualifications in civil engineering and other relevant skills. A bursary fund assists limited numbers of qualifying civil engineering students to complete their studies at universities and technikons.  Learners test their water reservoir as part of the Job Shadow initiative at UWP’s head office in Bryanston.

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PROPERTY

A new wave of change for AFRICAN REAL ESTATE Africa faces a critically important 2017, and while real estate occupiers and investors have both been accustomed to years of high growth rates above global averages, the potential economic and political headwinds could lay the foundation for a new way forward in Africa.

“It is often in the diversity and complexity of a situation that the solution is to be found. Faced with potentially turbulent times ahead, the journey will not be easy and decisions will often be very difficult at a political level. But, if the correct direction is chartered, Africa will remain a continent of diverse opportunity,” says Malcolm Horne, Group CEO for Broll Property Group, one of Africa´s leading commercial property services companies. Speaking ahead of the 8t h Annual Africa Property Investment Summit (API), which takes place on 24 and 25 August 2017 at the Sandton Convention Centre in Sandton Central, Horne will reveal several new trends that will play a significant role in reshaping Africa and the potential opportunities for real estate investments in future. “Last year produced several unexpected events like Trump and Brexit, and we will see the impact on Africa in the years ahead. Sub- Saharan Africa will also need to be able to deal with the dynamic of having its average growth rate being equal to or less than the global average for the first time since 2001,” points out Horne. From 2001 to 2008 Africa saw a growth rate of 5,9%, dropping to

4,1% from 2009 to 2016, and since 2013 a consistent average year-on-year decline has been recorded. How will this affect Africa as an investment destination for occupiers and investors? Sharing a glimpse into the retail sector, Horne says that while there are new brands continuously entering the African market, many retailers are still adopting a wait-and-see attitude in countries affected by the current downturn in commodity prices. “Technology is forever evolving in all sectors of the property market and role players in the property market need to adapt accordingly. For example, the banking sector’s physical asset strategies will closely leverage their digital and online strategies. The increased uptake of mobile, online and alternative channels by bank customers is resulting in physical property dialogues,” he says. “A number of shopping centres across the continent have also implemented Wi-Fi and Apps while online shopping is becoming more popular. Lower smartphone prices and data costs are driving the digital revolution in Africa.”

Malcolm Horne, Group CEO for Broll Property Group.

Addressing what can sometimes be the biggest barrier for potential investors, Horne believes that the ease of doing business in Africa has improved, with increased exposure to international companies entering Africa, and a drive by many countries to make it easier to set up business’s in-country. “However, while positive inroads have been made by a few countries there is still a long way to go, with the majority of countries having mixed success,” he says. Broll Property Group is the main sponsor for this year’s summit, and due to the company’s presence in sub-Saharan Africa, Horne says there is great value in their partnership with API and the exposure it provides to the sub-Saharan African market. “To create sustainable property investment and development opportunities across Africa, we need to

collaborate, share experiences and knowledge and navigate the unique challenges the continent presents to investors and developers together,” stresses Horne. Kfir Rusin, Managing Director for API Events, says: “We are committed to driving growth in Africa’s real estate market. API Events is thrilled to once again align ourselves with a leading brand like Broll that shares the same belief and commitment to African growth.”  Panel discussion hostel by API Events. From left: Peter Malia – CDC Group; Simon Fifield – RMB Westport; Cheick Sanankoua – HC Capital; Rory Ord – Riscura and Deborah Watt – Knight Frank.

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This according to Lead Auctioneer and Director of The High Street Auction Co. (HSA), Joff van Reenen, who was commenting after the company’s latest multi-property sale at Summer Place in Hyde Park on 22 August. “August’s sale continued what has become an emergent trend for HSA in 2017; the strong performance at auction of older industrial sites in prime locations that are affordable and ripe for redevelop- ment, as well as vacant industrial sites similarly positioned. “We are also seeing competitive bidding on modernised warehouse-type spaces and they generally command premium prices,” says Van Reenen. According to the 2016 IPD South African Annual Property index, industrial property was the top performer of the year with a total return of 13,6%. Retail showed a return of 12,6%. According to the IPD Index, the highest- performing core industrial category was high-tech industrial with a total annual return of 18,1%, driven by the increasing demand for regional warehousing-type distribution centres servicing the exponentially developing online shopping boom. IPD’s highest overall performer for 2016 was neighbourhood shopping centres, which produced total returns of 20,3%, although the report noted that “(these) returns should be seen in a longer-term context, which suggests a return to trend growth in 2016 rather than continued outperformance”. Van Reenen says prime industrial High return for investors Industrial property appears to be continuing the upward curve that started in 2016 when the sector’s performance overtook that of traditional market leader, retail, in delivering the highest returns for investors.

on a retail/warehouse space in Alberton North with a Gross Land Area of just less than 2 000 m².” Van Reenen notes that another strong auction performer in recent months has been multi-property sectional title lots in northern Johannesburg; “anything within reasonable commuting distance of Sandton”. “In this month’s sale, for instance, we had one lot of 20 apartments ranging in size from one bedroom to three bedroom units for sale in Killarney. Considering the building in which they’re situated comprises only 35 units, this also gives the buyer control of the body corporate. Needless to say it was an easy sell, with the hammer falling at R18,5-million.” 

sites have dominated HSA’s sales in recent months, followed by numerous neighbourhood shopping centres across South Africa that are coming to auction as several of the country’s dominant property management funds consolidate their asset registers. “A prime example is the Sediba Shopping Centre in Hartebeespoort that we sold for R95-million all told in July. "This period of asset consolidation by the industry’s whales has been exceptionally good for smaller, emergent funds because it’s afforded them the opportunity to acquire retail assets like Sediba that are rarely seen on the market. “And in terms of prime industrial, in the latest sale the hammer fell at R5-million

According to the IPD’s South African Annual Property Index neighbourhood shopping centres produced the highest total returns in 2016 – a massive 20,3% average. One of them, the Sediba Shopping Centre in Hartebeespoort, was recently auctioned for a total of R95-million.

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PROPERTY

BUCKING MAJOR RETAIL TREND Mitchells Plain shopping centre achieves exceptional trading performance in the bleak retail trading conditions in South Africa.

of Mitchells Plain and Strandfontein. Their anchor tenants, Game and Pick n Pay, provide social-grant pay-outs to South African Social Security Agency (SASSA) recipients, a key service in the area. We value our customers, and we want to ensure that they have the best possible shopping experience when visiting us,” says Nikiwe Mkhabela, Asset Management Executive for Liberty Promenade at Liberty Two Degrees. “It was the logic behind our strategic repositioning and the introduction of key stores and unique service tenants.” Last year Liberty Promenade introduced a number of new offerings, including Dis-Chem, HiFi Corporation, a Burger King drive-thru, Sorbet Drybar and Pick n Pay Clothing. “The tenant mix speaks directly to the market we serve, resulting in shopper loyalty and consistent turnover growth,” Mkhabela observes. The centre is owned by Liberty Two Degrees and Liberty Group Limited which also owns some of South Africa’s iconic assets which include Sandton City, Nelson Mandela Square, Eastgate Shopping Centre, Liberty Midlands Mall and Melrose Arch. “Liberty Promenade is a gem. According to the latest Clur research, the centre outperforms within its class, both in terms of overall trading density and growth levels,” says Belinda Clur, retail strategist and MD of Clur Research International (Pty) Ltd which evaluates shopping centres. “Liberty Promenade is extremely well positioned, seeming to form the heart of the community, and attracts high levels of loyalty from a strong surrounding catchment,” says Belinda Clur. The tenant mix has been extremely well crafted to support the needs of the surrounding catchment. The centre is going from strength to strength, with over 70% of categories showing positive growth in trading densities. Liberty Promenade is easily accessed by public transport with a taxi rank positioned on its property and security at the mall is a priority. “We’ve invested over R10-million in security improvements since 2010, including a continuous upgrade of our CCTV surveillance system, ongoing training of security resources and improved parking- area lighting,” says Mkhabela. To maintain their competitive edge, the owners plan to continue their improvement strategy by re-sizing and repositioning certain stores and introducing new local and international offerings suitable for the customers. 

Understanding your shopper is paramount to getting the right tenant mix, and putting that theory into practice gives Liberty Promenade, Mitchells Plain’s regional shopping centre, the edge. Liberty Promenade, located in the heart of Mitchells Plain, has more than 170 stores, a gym, medical centre, drive-thru’s and a family entertainment wing which includes a buzzing foodcourt and cinemas. The mall attracts more than one million shoppers each month, which is amongst the highest shopping centre footcounts seen in the country. The 73 400 m 2 shopping centre is positioned as the destination of choice in the Mitchells Plain and Khayelitsha areas by

offering the community a valuable resource. The South African Property Owners Association (SAPOA) Retail Trends Report recorded a turnover growth of -4% for the first quarter of 2017. Despite the current bleak retail trading conditions in South Africa, Liberty Promenade remains resilient with consistent strong positive trading density growth year on year. Liberty Promenade’s turnover grew by 11% in the year to May 2017 compared to the same period in 2016 and it has seen an improvement in the spend per head. Unique to the Centre’s service offering is a branch of SARS and a City of Cape Town municipal office servicing the whole

The tenant mix has been extremely well crafted to support the needs of the surrounding catchment.

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