As a leading business incubator committed to assisting entrepreneurs and small and medium enterprises to expand and grow in a healthy way, Aurik has a range of fully outsourced and affordable back-office services to ensure the smooth running of your business.  These include monthly accounting and bookkeeping services, Tax and VAT management, payroll and business registration services.

Using these services reduces stress, saves costs and ensures that you can focus on running and growing your business while we take care of the administrative slog.  Our monthly accounting and other back-office services are a necessity if:

• your bookkeeping is behind and affecting cash flow;
• your business is unfocused and not producing enough revenue;
• you’re doing the books and feel it’s a total waste of your time;
• your spouse, a family member or office manager is stuck with the job and isn’t up to the task;
• your back-office costs are too high and you don’t have enough work to keep your bookkeeper busy;
• you need to cut your back-office costs and yet want to increase your quality;
• you want to eliminate employee drama;
• you need to obtain quality numbers on which to base decisions;
• you need more time to focus on sales and customers;
• you are constantly paying tax penalties.

If this sounds like you, let Aurik take care of your monthly accounting; bank reconciliations; financial statements; balance sheet; debtors; creditors; budgets and more.  Without expert assistance, your books will become outdated or fall into chaos, resulting in wastage on tax penalties, poor decision making because of inaccurate information, the inability to raise finance when you need it and the wasting of precious time you could be spending building quality customer and staff relationships.

Contact Aurik today for more information on our monthly accounting and other back-office offerings to free you up to focus on running your business.

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At Aurik, we know that growth means change and that, as a business grows, so to does the complexity of its operational base. In order to meet the challenges of rapid business acceleration, you require a new understanding and enhanced set of skills in order to ensure that your business grows in a wise and sustainable manner.  Access to finance is one of the most prohibitive factors in gaining the new skillset required to properly manage your business acceleration, as your cashflow and systems may not be as smooth and reliable yet as you’d wish them to be. This is where Aurik’s Business Acceleration plan comes in, assisting you to build a foundation for your business, gain access to finance and grow into a healthy, flourishing concern thereafter.

Our SME Business Acceleration services include:

• Access to business skills (strategic, financial, legal, marketing, sales and dealmaking);
• Access to back-office services to deal with accounting, payroll and tax compliance;
• Access to fund-raising support (R3-7 million) on a success-fee basis;
• Access to short term debt finance (R250-R500k).

The anticipated outcome of our Business Acceleration assistance is that your business should be clearly differentiated from competitors whilst enjoying a solid and stable foundation and differentiated revenue streams. Additionally, your client base will continue to expand as you operate with an accelerated, lean, mean business model that drives greater profit ratios.  As a respected business incubator, Aurik is always on hand to advise and assist you in your mission to build the best business possible.  Since its inception, Aurik as assisted over 143 businesses to establish themselves securely in the market and grow beyond their wildest dreams.

Contact Aurik today for more information on our Business Acceleration offerings and how they can help your business grow in a healthy way.

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Aurik, one of South Africa’s fastest growing business incubators with a name of good standing in SME development, is the kind of business mentor you need for a fledgling idea to take wing.  In South Africa, our Total Entrepreneurial Activity (TEA) rate is very low in comparison to countries with similar socio-economic landscapes and systemic and structural environments. What this means is that our low TEA rate contributes to a low level of entrepreneurship development and therefore a lagging SME development rate. However, with  42% of all private sector jobs being generated by the SME sector, yet with it only owning approximately 12-17% of economic GDP, entrepreneurship and SME development is the most exciting, viable and major job creation opportunity in South Africa.

As such, Aurik is positioned as a company that helps ‘little people’ with big ideas grow to big people with bigger ideas.  We are here to act as your business mentor, providing focused support, asking and helping you to answer those difficult questions faced by any budding entrepreneur and helping you to grow your business to the extent where it is a viable and valuable one that is able to either continue being built or sold.

As a trusted and reliable business mentor, we can assist you to grow with our focused Business Incubation plan. By way of our 6-core Business Development modules, we will show you how to systematically build your business and deliver immediate, measurable results.  These modules are:

• Your Business
• Marketing
• Sales
• Human Resources
• Numbers
• Management

Working through these modules ensures you gain a solid working knowledge of the basics of your business and gain control over these functions in order to maximise the growth and development of your enterprise.  As a caring business mentor, we are here to assist you ever step of the way. Contact Aurik today for more information on our business mentor and incubation offerings and let’s grow your business together.

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Aurik, established in 2002, has grown rapidly into one of the prime business incubators in South Africa, offering pertinent and hands-on solutions to emerging entrepreneurs and focused, intelligentSME developmentservices.  A business incubator is essentially a ‘cocoon’ for newborn or young businesses, a valuable network of knowledge, support, assistance and industry know-how that eliminates years off the learning curve involved in starting up and growing a business.

When Aurik first came on the scene, it was as a result of us starting, investing and building small businesses into medium sized businesses prior to selling them.  With 22 businesses having been started and built this way, at Aurik we ‘walk the talk’ when it comes toSME development in South Africa.  Additionally, with us having rendered our incubation services to over 143 independent businesses thus far, you can be assured that we know better than most how to build up your business in a relevant, pertinent way.

When it comes to SME development, Aurik will help you to answer valuable questions in order to properly place your business idea and needs properly in the marketplace.  These questions include:

• What kind of idea can become a business?
• How do you start-up the business in a competitive environment with few resources?
• How do you get the right people to help you?
• How do you deal with your own psychology in the process?
• How do you stabilise the business and grow it without it falling over?
• How do you keep going and going when you are completely depleted of energy?
• How do you sell the business and do so well?

Contact Aurik today for more information on our SME development services and how we can provide the safety net to get your business off the ground, as well as assist thereafter in its acceleration and development.

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It is precisely those organisations that feel that they do not have the budget for marketing outreaches that are most in need of an organised marketing campaign. This applies to both upstream and downstream marketing efforts. In other words the SME requires a marketing campaign for both its products aimed at a selected customer set and a marketing campaign that positions the company as an attractive business partner. Often an enlightened SME will outsource the SME marketing to a strategic partner. This makes sense in many cases due to the fact that the SME may not have the internal resources to undertake any SME marketing outreaches by itself. The use of a strategic outsourced partner also makes sense from a cost perspective. The partner, due to their extensive experience in the field of marketing may also be able to offer cost savings on physical outreaches, such as advertising due to economies of scale, since they will in all likelihood be organising the marketing efforts of many SME operations.

When it comes to the marketing of the SME itself as a prospective supplier to a larger company the outsourced SME marketer must possess an intimate knowledge of the South African political, social, legislative and business environment.

This knowledge will allow the company to position the SME as an attractive business partner, often because dealing with the SME will allow the larger company to meet their obligations in terms of their B-BBEE obligations and allow them access to more business opportunities. This symbiotic relationship between big business and SME’s is proving to be an extremely successful one in South Africa. However care must be taken by the SME’s concerned to maintain an extremely high level of professionalism in the their dealings with larger companies. It is an extremely competitive environment and many larger businesses are spoiled for choice when it comes to selecting partners, only the most competitive of SME’s will make it to the next level.

If you are operating a smaller business and feel that you could benefit from strategic advice in the field of SME marketing then contact us.

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If you’re starting a new business or are changing the strategic path of an existing business then it is imperative that you and your management team pay careful attention to the guiding principles of business development. Business development guidelines help plan for entry into new markets, the consolidation of a current market position and also give the management team an idea of the competitive environment within which the business is operating. The business development process can be highly structured and technical so in many instances it is preferable to have a professional business development consultant visit the business and serve to guide the senior management through the business development process. By analysing the business development process senior management also get a better idea of the entire manufacturing and sales process. This insight can help identify new markets, but can also help cut costs and manufacturing times.

Many management gurus maintain that an effective organisation is one that never stops the business development process. As market conditions change due to new technologies, trends or social and political change the organisation must be ready to not only make allowance for that change, but to take advantage of the situation as new markets emerge and current markets change.

The most severe risk of ignoring the financial imperative of business development is often faced by smaller companies which rely on personal contacts to supply business to them This approach can very easily lead to an anaemic sales pipeline. It is precisely those businesses which consider themselves too small to require an organised approach to business development which should be prioritising the process.

If you need help with business development or feel that your organisation could benefit from a more structured approach to business development then contact us and we’ll supply you with a professional advisory service and the tools to increase your market penetration.

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It should come as no surprise that South African’s have been exhibiting entrepreneurial behaviour for many decades. Under Apartheid the majority of South Africans were denied access to many job opportunities. This fostered an entrepreneurial spirit and led to the establishment of many small businesses that are today thriving. The first decade of the 21^st century has seen business and government realise that the entrepreneurial mindset is essential if South Africa is going to improve the lives of all of its citizens, hence a growing interest in enterprise development. In its purest form enterprise development allows the smaller or less established concerns access to opportunities presented by being part of a larger of a larger economic community. In other words enterprise development is aimed at giving these less established companies a helping hand. In South Africa this is usually achieved by assisting these companies to become part of the supply chain to the larger companies or rather as preferred service providers.

In South Africa this relationship is usually a ‘win / win’ situation. The smaller firms, usually with management and staff from a previously disadvantaged background is given the opportunity to participate in the economy of South Africa and the larger firm is given the opportunity to improve their B-BBEE status and thus have access to more potential business.

By operating in close cooperation the larger and smaller enterprises will quickly see the advantages of a sustained enterprise development program. The trickle down effects of enterprise development within the South African context are easy to imagine. As the smaller companies grow they, in turn form relationships with other companies and the entire country prospers. In essence one could almost say that the principles of Ubuntu are exemplified by enterprise development.

If you would like to know about how you can harness the power of enterprise development to benefit your company then contact us.

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The accounting function is one of the most important in the enterprise, after all it is often said that you can’t manage what you don’t measure and accounting allows senior management to judge, at a glance how successful their current strategy is and what changes need to be made to a variety of different inputs so that profit is maximised and expenditure is minimised. To be of maximum use to the organisation the accounting function relies heavily on degreed professionals to interpret and input the figures that give shape to the financial position of the company. However these professionals are only as good as the information that they receive so often larger companies make use of specialised software which allows regional operations to supply figures in a standard and highly structured manner. This semi automates the accounting function, making the inputs easier to organise and the outputs easier to understand since they are presented in a standard format and in many cases in a format that can be understood by even the non accountant, providing a minimal level of training has been supplied.

In the case of smaller businesses the decision is often taken to outsource the accounting function. This makes good business sense as the establishment of a dedicated accounting or finance department is often a costly exercise.

If the decision is taken to outsource the accounting function it is absolutely essential that the organisation ensure that it is dealing with professionals. Always make sure that the accounting professionals that you are outsourcing to have the requisite qualifications and are registered with the appropriate professional bodies. Asking for references from clients in a similar business environment would also be a good idea.

If you need assistance or advice as regards your accounting function, deal with the professionals, contact us and we’ll structure an accounting solution that will suit your business.

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Johannesburg, South Africa. Aurik Business Accelerator has scooped the 2009 Mail & Guardian “Investing in the Future and Drivers of Change”, Education Award in recognition of the company’s business accelerator partner, Social Innovations.

01 November 2009. Aurik Business Accelerator has scooped the 2009 Mail & Guardian “Investing in the Future and Drivers of Change”, Education Award in recognition of the company’s business accelerator partner, Social Innovations.

Over 150 companies entered for the awards across all industries.

Aurik works with entrepreneurs to accelerate early-stage businesses into assets of value through a strategy developed fromthe direct experience of the partners over the last 17 years. The company also works with owners of distressed businesses to restore the businesses into assets of value.

This is the second award Aurik has won in the past three months. Their first award was the Halala Award obtained in June 2009 from the Johannesburg Development Agency (JDA) for the company’s business acceleration partner, Smart Gym in the “Relaxing and Playing” category.

“Increasingly we are seeing that more entrepreneurs are looking to find the right partner to accelerate their growth from early-stage SME’s into assets of real value. Done right, this can deliver real value and as an entrepreneur this makes sense since their biggest investment is into their own business”, says Pavlo Phitidis, Co-owner and CEO of Aurik Investments.

With unemployment running at 24.5%, there is currently much concern regarding the growing social, economic and financial impact of joblessness. When quizzed on solutions, almost everyone mouths platitudes regarding the value and importance of building and boosting entrepreneurship as a way of either creating jobs or developing alternative viable lifestyles. The importance of entrepreneurship as a way of creating employment is supported by research which has found that small and medium-sized firms account for approximately 41.7 percent of all employment in the private sector (Hans Falenka et al., Competition in South African Banking. Task Group Report for the National Treasury and the South African Reserve Bank (Pretoria: South African Reserve Bank, April 2004).

Every second week, we are told of new interventions to rescue key industries and unlock access to business finance. Regrettably, many of these interventions are short on detail and even slower to implement. But perhaps the most serious problem with these proposals is the extent to which they demonstrate a limited understanding of the real-life funding and support requirements of start-up and early-stage businesses.

If we are to grow entrepreneurship, we need, in the words of Chairman Mao, to “let a hundred flowers bloom”. It is obvious that as a business evolves, its financing needs develop and change in parallel. We accordingly have to create an environment in which the right type of funding is made available in the right amounts at the right time in the life of a business.

As a general rule, commercial debt funding is only relevant once a business has moved out of the highest-risk phases and has developed a sustainable and somewhat predictable cashflow. Prior to this point, commercial bank debt funding for a start-up or early stage business is difficult at best and irresponsible at worst. The discussions between government and the banking sector to promote commercial lending, whilst of importance to many established enterprises, is accordingly of little relevance to start-up or early-stage businesses.

But if debt funding is inappropriate, then what are the alternatives? The answer to this conundrum lies in the availability and provision of more risky equity finance. This may either take the form of venture capital or may be provided by so-called “angel” investors. In the United States, venture capital funding accounts for roughly 4% of all seed financing for start-up companies. The venture capital industry in South Africa may best be described as “nascent” as professionally managed funds specializing in venture capital-type investments are few and far between.

It is interesting to note that despite its glamorous image, venture capital is in fact not the most important source of start-up capital in the US. Instead, this accolade goes to angel investors who are estimated to provide 27 times more seed funding to early stage businesses than venture capital funds each year. In 2007 alone, angel investors invested more than $26 billion in 57 000 start up businesses.

So what is angel funding and who are these angel investors? An angel investor is typically an individual or network of individuals who provide capital to start-up businesses, usually in exchange for convertible debt or equity ownership. Angel investors are critical if we are to fill the gap between the financing typically provided by family and friends and venture capital funds.

Angel investors exist everywhere and are not an American phenomenon. In practice, it is estimated that up to 80% of Chinese businesses are funded by Angel investors and many countries are taking steps to actively encourage angel investors as part of a broader package of economic stimulus. Unfortunately, in South Africa, there is no angel industry to speak of. And yet, without this funding source, many new businesses will inevitably be starved of capital at a crucial stage in their growth cycle and will be doomed to failure. It is a little like planting seeds but only remembering to water them after the second month of drought, and then complain that the seeds are somehow defective when they either fail to grow or grow in a stunted form!

The importance of tax policy

The lack of effective venture capital and angel funding vehicles in South Africa may be at least partially attributed to the South African tax policy which does not incentivize these forms of investment.

In many countries, extensive tax support is provided to both the venture capital and angel funding industry. In the UK the Enterprise Investment Scheme (EIS) incentivizes corporate venturing by providing small investors who invest up to GBP150 000 per year, with up-front income tax relief, a capital gains tax exemption on the disposal of shares, deferred taxes on profits (if these are reinvested) and tax relief for capital losses. Similar provisions apply in many EU countries and in the US, where tax credits for venture capital and angel funds are common and in Brazil and Singapore where venture capital funds are exempt from capital gains tax. Most of these fiscal support mechanisms are broad-based, some are sector specific and many are location-driven.

The South African fiscus has made a limited foray into supporting the establishment of formal venture capital funds through the enactment of S12 J of the Income Tax Act. Tax relief is accordingly directed at investors who purchase new shares in registered venture capital companies. Cursory discussions with venture capital players however suggests that the impact of the tax relief has been modest at best and that it has certainly not had the desired effect of promoting widespread venture capital investment in early stage businesses. Of perhaps greater concern is the problem that there is currently no tax relief whatsoever for angel investors or angel investor networks who fund start-up or early stage businesses. This means that this form of funding will probably remain unavailable within the South African environment, with ongoing negative implications for entrepreneurial development.

Whilst we fully support current government initiatives and the renewed focus on start up and early stage businesses, we believe that the current approach of government falls short. In particular, we believe that without appropriate supportive interventions that match the business lifecycle, all our attempts to grow and develop an entrepreneurial culture in South Africa will inevitably fail, undoing existing investments by government in entrepreneurial development and training.

A crucial step forward would accordingly be for government to evaluate and restructure the existing tax treatment for venture capital funds and to establish tax-based incentives for angel investors (whether individual and corporate). This would go a long way towards plugging the real funding gaps that plague start-up and early stage businesses.

As a general rule, commercial debt funding is only relevant once a business has moved out of the highest-risk phases and has developed a sustainable and somewhat predictable cashflow. Prior to this point, commercial bank debt funding for a start-up or early stage business is difficult at best and irresponsible at worst. The discussions between government and the banking sector to promote commercial lending, whilst of importance to many established enterprises, is accordingly of little relevance to start-up or early-stage businesses.

But if debt funding is inappropriate, then what are the alternatives? The answer to this conundrum lies in the availability and provision of more risky equity finance. This may either take the form of venture capital or may be provided by so-called “angel” investors. In the United States, venture capital funding accounts for roughly 4% of all seed financing for start-up companies. The venture capital industry in South Africa may best be described as “nascent” as professionally managed funds specializing in venture capital-type investments are few and far between.

It is interesting to note that despite its glamorous image, venture capital is in fact not the most important source of start-up capital in the US. Instead, this accolade goes to angel investors who are estimated to provide 27 times more seed funding to early stage businesses than venture capital funds each year. In 2007 alone, angel investors invested more than $26 billion in 57 000 start up businesses.

So what is angel funding and who are these angel investors? An angel investor is typically an individual or network of individuals who provide capital to start-up businesses, usually in exchange for convertible debt or equity ownership. Angel investors are critical if we are to fill the gap between the financing typically provided by family and friends and venture capital funds.

Angel investors exist everywhere and are not an American phenomenon. In practice, it is estimated that up to 80% of Chinese businesses are funded by Angel investors and many countries are taking steps to actively encourage angel investors as part of a broader package of economic stimulus. Unfortunately, in South Africa, there is no angel industry to speak of. And yet, without this funding source, many new businesses will inevitably be starved of capital at a crucial stage in their growth cycle and will be doomed to failure. It is a little like planting seeds but only remembering to water them after the second month of drought, and then complain that the seeds are somehow defective when they either fail to grow or grow in a stunted form!

Business angels in South Africa received a much welcomed boost in the form of a great article published in the business report this month. Carien Engelbrecht argues that business angel groups in South Africa should be given tax breaks on money invested into new and growing business.

The report and recommendations make an enormous amount of sense. The small business sector created both jobs and income for the country, in many cases also ensuring an inflow of foreign currency. As the government has always been clear on their support of the small business sector through making available numerous grants and funding initiatives as well as creating bodies like SEDA and the IDC amongst others to support entrepreneurs, this will be a step in the right direction. If cash rich individuals or groups are prepared to risk their money to create jobs, income opportunities and revenue for the country as a whole then surely they are in part supporting what the government is setting out to do. Its a real win-win!!

With the unemployment rate running at 24.5 percent, there is much concern regarding the growing social, economic and financial effect of joblessness.

When quizzed on solutions, almost everyone mouths platitudes regarding the value and importance of building and boosting entrepreneurship as a way of either creating jobs or developing viable alternative lifestyles.

The importance of entrepreneurship as a way of creating employment is supported by research, which has found that small and medium-sized firms account for 41.7 percent of all employment in the private sector, according to Competition in South African Banking, a task group report for the National Treasury and the SA Reserve Bank by Hans Falenka et al, published in April 2004.

Every second week, we are told of new interventions to rescue key industries and unlock access to business finance.

Regrettably, many of these interventions are short on detail and even slower to implement. But perhaps the most serious problem with these proposals is the extent to which they demonstrate a limited understanding of the real-life funding and support requirements of start-ups and early-stage businesses.

Blooming Flowers

If we are to grow entrepreneurship, we need, in the words of Mao Zedong, to “let a hundred flowers bloom”. It is obvious that as a business evolves, its financing needs develop and change in parallel.

We accordingly have to create an environment in which the right type of funding is made available in the right amounts at the right time in the life of a business.

The typical growth cycle of businesses and the matching funding requirements are well understood.

As a general rule, commercial debt funding is only relevant once a business has moved out of the highest risk phases and has developed a sustainable and somewhat predictable cash flow.

Prior to this point, commercial bank debt funding for a start-up or early-stage business is difficult at best and irresponsible at worst.

The discussions between the government and the banking sector to promote commercial lending, while important to many established enterprises, is accordingly of little relevance to start-up or early-stage businesses.

But if debt funding is inappropriate, then what are the alternatives? The answer to this conundrum lies in the availability and provision of more risky equity finance.

This may either take the form of venture capital or may be provided by so-called “angel” investors.

In the US, venture capital funding accounts for about 4 percent of all seed financing for start-up companies. The venture capital industry in South Africa may best be described as “nascent” as professionally managed funds specialising in venture capital-type investments are few and far between.

It is interesting to note that despite its glamorous image, venture capital is in fact not the most important source of start-up capital in the US. Instead, this accolade goes to angel investors, who are estimated to provide 27 times more seed funding to early-stage businesses than venture capital funds each year.

So what is angel funding and who are these angel investors? An angel investor is typically an individual or network of individuals who provide capital to start-up businesses, usually in exchange for convertible debt or equity ownership. Angel investors are critical if we are to fill the gap between the financing typically provided by family and friends and venture capital funds.

Angel investors exist everywhere and are not an American phenomenon. In practice, it is estimated that up to 80 percent of Chinese businesses are funded by angel investors and many countries are taking steps to actively encourage angel investors as part of a broader package of economic stimulus. Unfortunately, in South Africa, there is no angel industry to speak of.

And yet, without this funding source, many new businesses will inevitably be starved of capital at a crucial stage in their growth cycle and will be doomed to failure.

The lack of effective venture capital and angel funding vehicles in South Africa may be at least partially attributed to the South African tax policy, which does not incentivise these forms of investment.

In many countries, extensive tax support is provided to both the venture capital and angel funding industry.

In the UK, the Enterprise Investment Scheme incentivises corporate venturing by providing small investors who invest up to £150 000 (R1.8m) a year, with up-front income tax relief, a capital gains tax exemption on the disposal of shares, deferred taxes on profits (if these are reinvested) and tax relief for capital losses.

Tax Barriers

Similar provisions apply in many EU countries and in the US, where tax credits for venture capital and angel funds are common and in Brazil and Singapore, where venture capital funds are exempt from capital gains tax.

The South African fiscus has made a limited foray into supporting the establishment of formal venture capital funds through the enactment of section 12J of the Income Tax Act. Tax relief is accordingly directed at investors who purchase new shares in registered venture capital companies.

Cursory discussions with venture capital players, however, suggest that the effect of the tax relief has been modest at best and that it has certainly not had the desired effect of promoting widespread venture capital investment in early-stage businesses.

Of perhaps greater concern is the problem that there is currently no tax relief whatsoever for angel investors or angel investor networks who fund early stage businesses.

This means that this form of funding will probably remain unavailable within the South African environment, with ongoing negative implications for entrepreneurial development in the country.

While we support current government initiatives and the renewed focus on start-up and early-stage businesses, we believe that the government’s current approach falls short.

A crucial step forward would accordingly be for the government to evaluate and restructure the existing tax treatment for venture capital funds and to establish tax-based incentives for angel investors. This would go a long way towards plugging the real funding gaps that plague start-up and early-stage businesses.

Carien Engelbrecht is a director of Aurik, a business accelerator based in Johannesburg.

Quietly out of sight to most of the world in their trendy Johannesburg central city office, Carien Engelbrecht and Pavlo Phitidis are building their business from investment opportunities at the bottom of the economic pile, among the city’s informal traders.

Their company, Aurik, has researched 27 services to Jo’burg’s poor and upwardly mobile – mainly food, health, leisure and logistics. They have identified the best informal companies and are trying to develop them into formal ventures. Who, for instance, would have guessed there was a market for a chain of inner-city fitness centres?

“We’re rolling out our third branch of SmartGym, six months after launching,” says Engelbrecht. Others are lined up to launch. Aurik launched as a venture capital business incubator in 2003, funding IT start-up company Mira Networks. “That’s now a successful mobile data aggregator based in Rosebank and provides Aurik’s cash flow,” says Phitidis. “We moved into the city a year ago to turn informal businesses into formal ventures.”

They won’t reveal the opportunities their research has revealed, but they are happy to talk about the potential failures. “We were surprised to discover, for example, that moving hairdressing from the streets into formal shops won’t work,” says Engelbrecht. “You have the paradox of consumers sitting in plastic chairs on the pavement for between two and five hours, paying R80-R120. They want to swap it for a cup of coffee, some warmth and quiet in a salon and feeling special, but can’t pay R200, the cost to make it viable.

“Though all the hairdressers compete with each other in one area, they don’t want to move into a shop. They are close to the main braid suppliers because they don’t have to carry stock,” she explains.

Crèches and child care are another non starter. “There’s a lot of uncertainty concerning children in the city,” says Engelbrecht. “Some children never leave their building. Their parents drop them off at a flat, where they are crowded with other children until the end of the day. It’s not healthy but few inner-city working parents are prepared to spend R300/month for a proper crèche.”

Aurik has a clear process of developing ventures

• Research the service and the market, before selecting a partner with skill and expertise. “If it looks probable that we can build it into a R20m business in five years, we move to the next stage,” says Phitidis.
• Market strategy. “We focus on how we can make a business operational until critical mass is reached,” he says.
• Paying a lot of attention to governance and management processes.
• Launching the business and ramping it up to three or more times its size.

Underlying it all, though, says Phitidis: “We love risk.”

WiniKhaya, a promotion in which one person wins R500 000 every month to buy or build the home of their choice, has generated substantial funds for charities month after month for the past 22 months, including more than R7 million for the SA Children’s Charity Trust (SACCT).
In addition, 21 people now enjoy the security of owning their own homes while a further 700 people have won the R2 500 daily prizes of cash, cars and other goods.

Pavlo Phitidis, CEO of Mira Networks, the wireless application service provider that developed the mobile technology solution for WiniKhaya, says: “WiniKhaya’s credibility, its consistently fresh appeal and its transparent draw process mean that it has become the Duracell bunny of SMS-based charities. It just keeps on going while imitators fall by the wayside.

“WiniKhaya is an impressive example of social entrepreneurship and evidence of how mobile campaigns can deliver on a company’s social obligations while also meeting commercial objectives.

“WiniKhaya is becoming a classic case study of how to merge the high-tech world of mobile with the rands and cents world of marketing. Because the nature of their business matches the interests of the target market perfectly, WiniKhaya’s sponsors (People’s Bank and SABC 1) have received more than just brand promotion. Eyeballs watching television screens have been translated into feet in stores thanks to the intelligence behind Mira’s mobile application.”

WiniKhaya was conceived by the SACCT, a grouping of five children’s charities, in response to the funding challenges they face on a daily basis. When cellphone premium-rated services were in their infancy in South Africa, these charities developed a promotion that has become the biggest SMS-based fundraiser.

Leslie Mondo, a representative of the SACCT and Secretary General of the South African Red Cross Society, says: “We would like to thank all South Africans for their enthusiastic participation in this campaign. On behalf of our beneficiary charities, I would like to ask every South African to support us by entering WiniKhaya every month. R7.50 is a small contribution to make, and you never know, you could soon be shopping for the dream house of your choice.”

Phitidis says: “If your promotion includes a draw mechanism make sure that the credibility and honesty of this process is related to your brand credentials. The draw mechanism should be automatic and random. It may be appropriate for your draw process and results to be audited by a reputable firm. WiniKhaya is only successful because people perceive it to be honest and credible.”

WiniKhaya found that a good time to increase the amount of advertising slots is month-end when prepaid cellular customers are topping up their airtime and contract customers have paid their bills. This is when they can best afford to respond to the campaign.

The City of Johannesburg and the Johannesburg Development Agency (JDA) on Thursday evening honoured private sector developers, which were consistently changing and uplifting the face of the inner city, at the second yearly Halala Joburg awards.

“The private sector has rewarded us with investment far beyond our expectation,” enthused JDA chairperson Luthando Vutula at the glittering awards ceremony, held at Constitution Hill’s Round House.

These awards are a visible expression of the values of promoting innovation, drawing attention, facilitating involvement, creating impact, encouraging flexibility, assisting engagement, developing ownership, and leaving a legacy, said the JDA.

In the category “caring Joburg” for developments supporting the citizens of Johannesburg, three investors each won a Halala award. These were: Makhulong A Matala – a subsidiary of the Johannesburg Housing Company (JHC); Citykidz pre- and primary school – Affordable Housing Company (Afhco); and, Friends of the inner city forum – established by inner city community member volunteers.

In the category “relaxing and playing Joburg” for recreation destinations, the winner was Smart Gym. Established in 2006, there were now three Smart Gyms in the inner city, occupying space in previously derelict and dangerous buildings, and MD Carien Engelbrecht said that the company now had 3 000 members.

The other finalists in the relaxing and playing Joburg category were Ashanti Urban Hip Hotels, and the Bassline in Newtown.

In the category “working and buying Joburg” for creating a business destination in the city centre, the winner was Olitzki Property Holdings, for the Lunga, uMoya and Marlborough House project.

The development is said to be the catalyst behind the Ghandi Square upgrade and removed illegal occupants and renovated the office buildings, and brought in retailers such as McDonalds, Steers, Mimmos, and MTN, on the ground floors.

The Lunga, uMoya and Marlborough House development ran up against the other developments of Works @ Market by City Properties, and another Olitzki Property Holdings development, the Loveday complex.

The “living Joburg” category was further divided into three categories – and the winner of the ‘luxury’ living award was Luengo Investments for the Ashanti and Dogon Buildings on Anderson street. Luengo is a joint venture between insurance giant Hollard Insurance and black women’s investment group PHAB Holdings, and the apartment and hotel are operated by Urban Hip Hotels.

In the ‘affordable’ living category, the winner was Afhco’s Sambro House, in Marshalltown. Sambro House consists of 121 units, with bachelor flats priced at R1 440 a month, and one bedroom apartments available for R3 440 a month. The building was previously a hijacked building that had been stripped of all its fixtures, and project development came in at a cost of about R22-million.

In the ‘individual investor’ or entrepreneur living Joburg category, Nqobile Khumalo scooped the award for the Sara Leon Building in Lorentzville. With funding from the Trust for Urban Housing Finance, Khumalo, with experience in building maintenance and plumbing, completely refurbished the once illegally occupied, six unit building, and the first tenants moved in during July 2008.

A new addition to the award categories in 2009, the “sustaining Joburg” award had two recipients. The winners were the Main Street Mall, and the eKhaya neighbourhood improvement programme.

The Main Street Mall is a Section 21 company (not for gain) that was established by the property owners on Main Street to upgrade, and now sustainably manage and maintain the area in Marshalltown with its strong mining references.

The eKhaya neighbourhood improvement programme, in Hillbrow was said to have had a direct positive impact on the 6 000 people living in the 33 programme affiliated buildings. It was initiated by the JHC in 2004, and has since introduced campaigns to tackle specific issues such as safety, cleanliness and health.

The Colosseum Heritage award was also handed out at the Halala ceremony, and the Turbine Hall Square scooped this accolade. The floating trophy was handed over by Egoli Heritage Trust chairperson Herbert Prins.

The development, now the home of mining company AngloGold Ashanti’s corporate head quarters, was said to be a catalyst for change in the area. The heritage and architecture had been preserved by the Tiber group, in a way that was said to enrich the environment, and play a role in the regeneration of the city.

South Africa’s biggest children’s charities have been hit by a potentially devastating court finding that their multimillion-rand Winikhaya fundraising competition is illegal.

But the South African Children’s Charity Trust, which includes the Reach for a Dream Foundation, South African Red Cross Society, CHOC Childhood Cancer Foundation and Cotlands, is not taking the Supreme Court of Appeal’s decision lying down.

The trust, which raises money for children who are abandoned, abused, disabled or suffering from life-threatening illnesses, yesterday announced that it would today apply to the Constitutional Court for the right to appeal against the ruling given by appeal court Acting Judge Phillip Boruchowitz.

Judge Boruchowitz yesterday ruled in favour of the National Lotteries Board, which argued that the Winikhaya competition – which has paid out some R45-million to children’s charities over the past five years – was an illegal lottery and should be stopped. “No matter how meritorious the competition might be, it does not comply with the prescribed conditions (of the Lotteries Act), and the trust is obliged to discontinue its operations,” the judge said.

Ironically, it was Winikhaya’s charitable focus that saw it branded as an illegal lottery.

The Lotteries Board argued that Winikhaya, which could be entered with a R7,50 SMS and offered a R500 000 home loan and cash as prizes, was not a promotional competition as it did not promote the sale or use of any goods or services.

Under certain sections of the Lotteries Act, the board argued, the competition should therefore be declared illegal.

Despite the trust’s pleas that its charities would be severely compromised if Winikhaya was terminated, it was this “promotional competition” argument that convinced the appeal court. The ruling does not necessarily mean the end for Winikhaya, however.

It seems likely that the Lotteries Act – yesterday slammed by Cotlands executive director Jackie Schoeman as “a piece of legislation that is ambiguous and poorly worded” – will come under the scrutiny of the Constitutional Court’s 11 judges next year.

Schoeman admitted that Judge Boruchowitz’s ruling could have potentially dire consequences for the charities funded out of the Winikhaya competition, but stressed that the trust had launched Winikhaya five years ago “in good faith, based on the best available legal advice”.

“It is very difficult raising money, and Winikhaya provided us and other charities with guaranteed funds, for which we are very grateful,” Schoeman said.

Sources within the charitable sector have supported Schoeman’s statements, adding that Winikhaya had been a “godsend … particularly because the funding we receive from the National Lottery has been so erratic”.

Meanwhile, trust spokesperson Kimon Phitidis maintains that the Winikhaya show, which is watched by 6-million viewers every day and is broadcast after Generations on SABC1, will continue to be aired.

“We will not be in contempt of court … because an appeal will be lodged on Tuesday (today),” he said.

SABC spokesperson Kaizer Kganyago yesterday did not respond to requests for comment. Judge Boruchowitz ordered the SABC to pay the board’s legal-costs bill, together with the trust, after it applied to intervene in the Winikhaya case and then later abandoned its argument in the appeal court. ]]> http://www.aurik.co.za/outrage-as-court-declares-winikhaya-an-unlawful-lottery/feed/ 0 http://www.aurik.co.za/getting-direct-mail-mobile/ http://www.aurik.co.za/getting-direct-mail-mobile/#comments Sun, 18 Jul 2010 16:50:55 +0000 admin http://www.aurik.co.za/?p=201

With over 22 million cellular phone users across the entire country, growing at approximately 220 000 new customers per month, mobile technology offers the best opportunity for reaching huge numbers of people in the most direct and personal way.

Research has shown that over 89% of cellphone users use mobile applications like SMS. By comparison, South Africa boasts about 5 million fixed lines, 3.5 million Internet addresses and 4.2 million postal addresses, mostly belonging to businesses.

Value-added services (VAS) are any services that can be accessed using a cellphone handset and that are not related to voice services. Examples readers would be familiar with include the hugely popular SMS (Short Message Service) services, MMS (Multimedia Messaging Service) technology allowing the transmission of picture and photo messages between mobile users and IVR (Integrated Voice Response) telephone lines such as customer care and competition lines.

Marketers are realising that the ability to directly target specific consumers far outweighs the limitations that 160 characters text messages have to offer. Mobile marketing is definitely about quality over quantity and SMS communication is a very personal, direct and timely media.

Unfortunately, most marketers currently understand VAS within fairly limited terms and get trapped in a bulk SMS mindset and never experience the full impact of VAS on their bottom lines.

Possibly the most important and relevant piece of South African legislation we need to put the spotlight on is the Electronic Communications and Transactions Act. This recently-promulgated Act is often quoted by overzealous consumer journalists who claim it prohibits the sending of unsolicited commercial text messages. This is not the case. The Act allows for the sending of unsolicited commercial SMS messages, provided there is an opt-out mechanism in the message. Is it therefore extremely important that marketers ensure that the recipients of commercial SMS messages always know who the messages are coming from and how they can unsubscribe from the service.

Last year, the Marketing Federation of SA (MFSA) and the three cellular networks launched a website called www.smscode.co.za. The website enables consumers to identify which company sent them a commercial SMS, contact the relevant company to ask to be unsubscribed from the sender’s list and to report any unsolicited commercial SMS messages to the MFSA.

Finally, those of us who would prefer to limit the number of unsolicited text messages they receive should exercise caution when giving out their cellphone numbers, especially when opening retail credit accounts. When filling out applications for certain goods and services, consumers should also remember to tick the box asking that they not receive unsolicited marketing communications.

Marketers who make use of commercial SMS messages and who might have to deal with angry consumers demanding to know where they found the consumer’s cellphone number, would do well to point out the above.

Do’s and don’ts of mobile marketing:

• Don’t continue to send messages to non-responding customers for an indefinite period of time. This costs you money and they may not know how to unsubscribe.
• Don’t use slang (ie, 2nite), unless your target market is very young.
• Don’t send a message without the true cost of the reply message.
• Don’t send a message without saying who it is from.
• Don’t sell lists of cellphone numbers to other promoters as this infringes on your customers’ right to privacy.
• Do obtain legal opinion before embarking on any long term SMS campaign. The Lotteries Act, in particular, is known to contain a number of contradictions.
• Do be careful about using the word “win”. You may be conveying a false impression regarding who may be eligible for prizes.
• Do refrain from using content which might result in harm to children.
• Do remove people who have asked to be unsubscribed from your list.

• Dated – November 27, 2006
• By – Neil Fraser

A Social Movement Against Crime

LAST Monday I attended the launch at Constitution Hill of A Social Movement Against Crime, a joint initiative of The Star newspaper and Gauteng’s 130 community policing forums (CPFs).

Basically, the initiative seeks to reinvigorate the numerous CPFs, but primarily it is about creating a new spirit of volunteerism among communities, business – both formal and informal, faith-based organisations, trade unions, non-governmental organisations and other public and private institutions.

There were some good speeches (a bit too many, I think there were eight in all), generally centred on “working together, we can create a safe and secure environment” by “getting involved”, remembering that “reducing crime begins with your individual effort” and “we are all part of the solution to crime”. I’ve always found the United States to be the home of volunteerism and it is one trait that we have generally failed to adopt.

But we were reminded how successfully the struggle movement mobilised the townships and that this approach of door-to-door, street-to-street community enlistment should be part of the process in fighting crime. Thus there was a lot of the talk focused on getting communities effectively to “freeze out” criminals and criminal activity.

I think it can work if we can just get the commitment.

One message that really struck a chord with me was from Susan Shabangu, the feisty deputy minister of safety and security. Here at last is a politician who understands the basics related to the 2010 Fifa World Cup. She was sick and tired, she said, of hearing people talk about the necessity of safety and security for visitors to the 2010 event. What we must focus on is getting safety and security right now, for ourselves, for the country and its citizens – the rest will follow, she said. Right on!

While on the subject of crime, I don’t know if you noticed from the recently released crime stats that inter-personal crime in Joeys has been on the increase. Why? Surely one of the reasons is that as we densify the city without providing appropriate and additional amenities, public space and so on, tensions rise between people and these are increasingly manifested in violence.

So it is not surprising that one of the first replies I received to my request last week for suggestions on improving the inner city to be referred to the planned Inner City Summit was that the city should: “close streets in the blocks around Beyers Naude Square from Kerk to Commissioner streets or even as far as Main Street on Saturday afternoons and Sundays to create a huge, pedestrianised area. Rollerskating, cycling, shopping, ball games – the city should be alive with all its residents out and about. It doesn’t need to be a jamboree, just opening up space so that people living there are entitled to enjoy all the space the cars use on weekdays.”

In the same vein, the Trafalgar Report (Citichat 41) stressed that, “tenants and owners are demanding recreational facilities such as gyms, coffee bars and internet cafes”.

SmartGym

Well, a brilliant new initiative, SmartGym, has been established in the inner city (the official launch is tomorrow) after being thoroughly researched and will bring an important new dimension to the lives of inner city citizens.

The SmartGym concept was developed by Aurik Investment Holdings, a venture capital enterprise incubator that fosters new business ideas for inner city environments, together with John Fourie, who is well known and highly experienced in gym establishment and operation.

Aurik’s Carien Englebrecht gave me a fascinating run-down of the philosophy behind the inner city SmartGyms. She brings a strong inner city insight to the table, having been involved with cities for as long as I have known her. She spent some years focusing on cities with her work with the provincial government and then with the World Bank, as well as spending a period project managing the first South African Cities Network State of the Cities Report 2004.

Englebrecht explained that gyms as you and I know them are classed as “destination gyms”. You drive to them, have your workout and then drive home or to work. That hardly suits the lifestyle or resources of inner city folk, so you need to take the gym to them. Destination gyms are generally huge, with massive membership numbering in the many tens of thousands; SmartGyms are small, intimate neighbourhood gyms with a design capacity of maybe 2 000. Location thus becomes critical and the first gym has been established in Castle Mansions, on Eloff Street between Jeppe and Kerk streets.

Castle Mansions, built in 1930-2 is described by Gerhard-Mark van der Waal in From Mining Camp to Metropolis, as “representing one of the first applications of the Ahistorical Style in Johannesburg”. It was refurbished and converted to residential space by Afhco a couple of years back.

Directly to its south are Royal St Mary’s, which is soon to be converted into residential space by City Properties and Old Mutual, and The Inner Court which, I believe, is up for auction and may well end up as residential space. Directly opposite Castle Mansions, on the corner of Jeppe and Eloff streets, is the building previously known as African City, and now converted to “140 stylish loft apartments” known as Tribeca Lofts.

This area of Jeppe Street has, in fact, become the centre of a major residential node so this SmartGym is exceptionally well positioned. But it is not just the surrounding residential buildings from which it draws its clientele but also from commuters from Soweto who work in the vicinity. Eloff Street is a major public transport route and Kerk Street is a pedestrianised informal trading linear market – thus it attracts traders from the streets as well. It makes for an eclectic mix promoting diversity, tolerance and friendliness.

The gym itself is on the lofty mezzanine floor on the corner of the Kerk Street Mall and Eloff Street. It provides a great space for a gym, high from floor to ceiling, and with lots of light, large windows looking on to the tops of trees – a “green” inner city space that is in deliberate contrast to the city’s greyness. You feel insulated from the hustle and bustle of street-level inner city life, yet very much part of it. It has an upmarket feel without being intimidating in any way.

SmartGym’s apple logo (signifying freshness) with the mantra “Once a day” – remember your grandmother’s sage advice, “An apple a day keeps the doctor away”? – point towards maintaining a healthy lifestyle. Opening soon will be a specialised launderette – many of the members are single, inner-city residents so this will add to the convenience of being a gym member. Smart!

The prime time for exercise is early morning and late afternoon or early evening. The gym offers aerobics classes and various other programmes as well as set routines such as Smart Fit, Smart Shape and Smart Strong, depending on your needs. Each is identified using specific equipment through colour coding and numbering. This all makes it easier and more relaxed and friendly.

And, taking cognisance of the fact that many first-time gymers feel quite intimidated, instructors are trained specifically to watch for them and to provide quick and friendly assistance.

It is an “all-South African” initiative. The equipment is high quality and locally manufactured; local suppliers and subcontractors were used throughout and the 12 permanent and seven temporary staff are locals, providing critical inner city job creation. I met Freddy Masia, who manages the gym, and his pride in the facility and enthusiasm are palpable. Local expertise with excellent inner city connections was also used for branding and design, namely It’s a Go! Communications and Savage and Dodd Architects.

In addition, membership costs have been tailored to the needs of the clientele, with no seven-year contracts. A pragmatic membership approach provides great flexibility in both period and payment alternatives. For example, periods are deliberately made user friendly as they relate to other repayment periods familiar to the clientele.

Two more SmartGyms will be opened in early 2007, one in Hillbrow and the other in Berea and, within the next few years, a total of eight will be operating in the inner city. That represents an investment of more than R10-million. Aurik Investments is planning to open 20 gyms in Joburg, Tshwane and eThekwini over the next three years, which represents substantial faith and investment in South African inner cities. Smart.

SmartGym is not just another business. It is a “smart”, inner-city lifestyle approach carefully tailored to add value to inner-city living.

Johannesburg Housing Company

Talking about “inner city smart”, I attended the Johannesburg Housing Company (JHC) annual general meeting and luncheon on Wednesday, 22 November. This quite amazing company just gets better every year and continues to be a model for so many aspects of innovation in urban revitalisation.

• It purchased the first building for social housing – San Martin in Joubert Park, in 1996;
• It undertook the first office to residential conversion – Tower Hill in Hillbrow, in 1997;
• It made the first slum clearance and upgrade into decent affordable accommodation – Douglas Rooms in Troyeville, in 1998;
• As a social housing company it established the first community development department in 1999;
• As a social housing company it opened the first crèche in a JHC building and was the first to convert a hotel, The Landrost, to residential accommodation in 2000;
• It was the first residential landlord to formulate an HIV/Aids Charter in 2002;
• It was the first residential landlord to undertake an upgrade under the City’s Better Buildings Programme in 2002;
• It became the first residential landlord to introduce a Hardship Assistance Programme in 2003;
• Also in that year, it brokered the first public-private partnership in residential development – Brickfields, Newtown;
• It introduced the first residential neighbourhood programme in Pietersen Street, Hillbrow, in 2004;
• It undertook the first solar energy installation in a high-rise residential development in 2005; and
• In 2006 it became the first South African company to be awarded the World Habitat Award.

And, to top off all that, it has produced sparkling results. Total assets have grown to R326-million, operating profit is R20,5-million before a fair value adjustment with vacancies at only 1,6 percent of its 2 651 units and arrears at just 0,0019 percent.

Wow! Great cities spawn great companies – or is it both-and rather than either-or?

ZuziMpilo Medical Centre

Another city amenity opening on Tuesday, 28 November is ZuziMpilo Medical Centre, situated on the second floor of the historic Ansteys Building, on the corner of Jeppe and Joubert streets. The centre offers subsidised antiretroviral treatment at affordable prices, but is really a one-stop service providing counselling, HIV testing and a wellness clinic for those not yet eligible for the medication.

The Inner City Summit

I was going to provide more information about the Inner City Summit but I have run out of space so I will hold over the detail until next week, which will be the last Citichat for 2006. However, just think about the following reflections from an American city as it too looks at its own future: “It will take a wise, well-balanced tripod of city builders – visionary civic and political leaders, informed citizens and engaged professionals. Our destiny will be defined by our willingness to explore the ineluctable relationship between bold action and thoughtful planning, between consumption and stewardship, between the future and the past.”

The project was announced by President Thabo Mbeki almost two years ago, and given a budget of R1.3-billion and a time frame of seven years. The aim is to make this sprawling ghetto township, some 12km north-east of the city centre, into a place where people can live decent lives in pleasing surroundings.

Alexandra dates back to 1912 – it celebrates its 90th anniversary this week with an active programme for its residents. It is historically one of the few places in the city where blacks were allowed to own property because it was established before the 1913 Land Act.

With successive migrations into the city, the township burst its planned capacity long ago, with backyard and Jukskei riverbank shacks resulting in gross overcrowding and horrendous problems. The service systems and infrastructure were originally designed for 70 000 people; there are now 350 000 people living in an area of one square mile.

The renewal approach is to attack all problems at the same time, says Carien Engelbrecht, programme manager of the project. For the first time in the township's history, a "forward-looking development framework" with a "potent monitoring system" is being put in place.

"To implement this, an audit of all lawful zones and actual use of land has been conducted," says Engelbrecht. Historic and cultural features have been identified, and an urban design framework, which includes businesses in the townships, has been compiled.

The action has begun:

• Some 7 000 people have been moved from the dangerous river banks, and those banks have been reinforced and grassed. Flood plains have been restored and intrusions like weirs have been decommissioned.
• Around 2 400 houses have been built, with a further 11 500 houses to be built in the next three years, aiming overall to provide 50 000 houses.
• A skills and entrepreneurial development programme is about to be launched. Short-term labour-intensive public works jobs have been created in work presently being done in the township.
• A greening strategy is in place, starting with the development of parks and the appointment of environmental health inspectors. Some 3000 trees have been planted. Two cemeteries are being redeveloped. To bring the green message closer to home, greening workshops and gardening competitions have been held.
• Large new reservoirs have been commissioned. A water-borne sanitation system is being put in place, together with collector sewers. CCTV cameras are being used to assess the condition of the sewer infrastructure. In January high pressure water will be pumped into the pipes to clean them.Nine water monitoring points are now in operation. The e.coli count in the Jukskei river has dropped from 1.6 million parts per 100ml to 600 000 parts, over the past 18 months. Four air monitoring stations have been installed to monitor noxious gases from nearby industries.
• Some 58 000 bins have been distributed throughout the township. Street butcheries, noxious industries and medical waste from local hospitals are to be forced to comply with by-laws to reduce waste from these industries polluting the township, the sewer system and the Jukskei.
• Building control and land-use control inspectors have been appointed to bring some order into the uncontrolled settlement of squatters and monitor dumping and new building development.
• Roads are being upgraded and tarred and kerbs are being paved, with stormwater drains fitted.
• Around 122 000 person-days of employment have been created in the last 18 months, 30% of which has gone to women.
• Alexandra's first police station is to open in January. The township's first welfare office has just opened.
• An above and below ground audit has been undertaken, in an effort to trace the sewer and waste water infrastructure. There are no grid maps for the township so the painstaking process of re-mapping the infrastructure has had to start from scratch. Many shacks have been haphazardly placed over manholes and occupy essential servitude entrances.

Engelbrecht stresses that the approach is one of give and take. Not every shack and its occupants situated in servitude lanes will be removed – the lane will be made accessible by essential removals only.

The project aims to reduce unemployment by 20% and up the services payment level to 90%.

"Nothing would have been possible without partnerships," she emphasises. The project involves provincial, local and national governments, the residents of Alexandra, 32 agencies like Pikitup, City Power and Gauteng Tourism, non-governmental organisations and community-based organisations to help implement the project, and, lastly, business.

"The business sector has been the slowest to come on board," says Engelbrecht. They want to see concrete action before they are willing to commit themselves to the project.

Concrete action has certainly begun.

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