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As any business leader with a few years under their belt can testify, all organisations go through challenges as part of the natural growth cycle.

These range from managing excessive growth as the result of a surge in business, to dealing with a downturn that leaves you feeling as though everything is hanging on by a thread. The measure of a good leader is one that can weather all these storms, and come out smiling and stronger at the end!

Tough times

In South Africa we have been largely shielded from the recession that is sweeping across the globe, but there is no doubt that many businesses are feeling the pinch, and a lot of entrepreneurs are beginning to feel insecure. The recent labour disputes, strikes, rising youth unemployment and growing sense of militancy add to these concerns, which can feel overwhelming to the business owner just trying to get on with it.

On the non-profit side many South African NGOs have already put out the white flag of surrender, and concern about a lack of funding support across the board has NGOs struggling to come to terms with how to manage this rapidly changing environment. It feels as if things are in flux; long-term planning and strategy are very difficult at the best of times, and nigh impossible at the moment it seems.

Look to the future

The reality is that in every situation there is opportunity. Now more than ever, leaders need to focus on what can be done and develop the strengths and the strategy needed to get ahead no matter the external factors. Right now there are those who are succeeding, and those who are struggling. Focus is needed to turn both of these positions into ones of strength.

The starting point to the future is having the information you need, knowing how to use it and maintaining the confidence to make it happen. These four simple tips can help you maintain focus:

• Get the information you need, when you need it
• Know who to turn to for help
• Build organisational sustainability
• Stay confident, be courageous
• Get the information you need

Because financial performance is so integral to sustainability, one of the most important aspects of any business is to really understand where your money sits, and how well it is working. In many small organisations this information is often vague and poorly recorded, and that needs to change. In simple non-financial language the minimum every organisation should know is what is owed, what is owing, and where the cash sits.

Good cash-flow management can reduce the need for every-day finance, but a rapidly growing organisation also needs access to expansion finance, and knowing where and how to get it is important.

In a recent survey conducted by my company Fetola, a whopping 93% of respondents (entrepreneurs and NGO leaders) said that they felt under-informed on where, when and how to access finance – a combination of both lack of access to information, and the inability to understand what is being said. This lack of knowledge is holding many small organisations back.

The internet is awash with free and paid resources that business leaders can access to educate themselves on the language of money. If you are the boss, you need at least an understanding of how money works in terms of your organisation - the buck literally stops with you!

Know who to turn to for help

Finance for growth and sustainability is readily available in SA. Sadly, the average business owner is lost when it comes to applying for finance because firstly the language of finance – the bankers language - is not understood, and secondly the level of detail required by potential financiers is beyond the skills of most small organisations.

Most small business and NGO leaders are ill-equipped to manage the sophisticated and often onerous processes needed to prepare detailed financial applications, yet too often the 'service providers' assisting with business plans and bank applications use cut and paste that results in poor end-results. It is essential to have someone you trust on your team, who can translate banker speak into something that you understand, and help with the preparation of documents that potential financiers require.

There are also a number of private and government-aligned finance and business support organisations that can assist and advise, of varying quality. The Small Enterprise Finance Agency (SEFA) is an amalgamation of Khula Enterprise Finance, the South African Micro Finance Apex Fund (SAMAF) and small business activities previously housed within the Industrial Development Corporation (IDC) – and hopefully will prove more effective and efficient than its predecessors.

Build organisational sustainability

It is critical for organisations to develop self-sufficiency, to reduce the reliance on external funding and build real growth. Ideally one should be able to maintain an organisation without outside finance, by generating income through activities and building reserves for development. This level of sustainability is driven by sales (or fundraising for NGOs) and is a crucial part of business success.

Beyond effective sales there is the need to create business leadership – the state of being in control of both oneself as the business leader, and the business as a whole. Leadership skills, and the ability to effectively position oneself in the working environment is often what sets the best apart from the rest.

While it is true that some people are 'born leaders', there are a number of tactics and actions that others can apply and assimilate in order to strengthen their leadership skills and create a happier, more effective and ultimately more successful company culture. Some online resources include http://bensimonton.com/ and http://www.businessballs.com/leadership.htm .

Confidence and courage

All the tools, tips and capabilities are useless without the confidence and the courage to use them. While true confidence comes with knowledge and experience, finding a courage partner, mentor or like-minded business group can often be the boost that a leader needs to make bold and difficult decisions. Staying positive and informed, networking with winners and gathering the information one needs to be ahead of the game is essential to personal and organisational confidence.

Business leaders that take the time to learn, to network and to develop new skills generally have the confidence to make bold choices. Leaders with a vision should consider joining business support programmes such as the Old Mutual Legends programme that are proven to make a difference to participants – and as Tim Cohen reports in Business Day (27 August 2012) participation in effective business development programmes have been proven globally to significantly accelerate success.

It is true that we are navigating some stormy seas on a global scale. The recent global financial crisis is dire and analysts are warning that more is quite possibly on the way. Now more than ever, leaders need to develop and maintain their skills, surround themselves with good people and make bold and courageous decisions when the situation calls for them. Whether your organisation sinks or swims is really in your hands.

For leaders interested in developing their skills, an upcoming interactive conference for SMMEs and non-profits will be held in Johannesburg at the end of September. This practical event forms part of the Legends business development programme and will feature a number of business leaders, financing agencies and other experts in the field. For more information, visit http://fetola.co.za/legends_magic_workshop/.

By Catherine Wijnberg

MicroFinance South Africa (MFSA) recently conducted research into the behaviours displayed by credit providers and consumers in the lending industry. The research, which provides valuable insight for credit providers, not only identifies current trends and perceptions held by consumers, but also highlights a wealth of opportunities for those in the microfinance arena.

Perhaps one of the greatest opportunities that the research underlined was the need for microlenders to offer an all-in-one lending solution. When asked what respondents were most likely to use their loans for, the most popular responses were: Education financing, business opportunities, consolidation of loans, home/personal improvements, luxuries and emergencies. In light of this it seems evident that microlenders who offer products or services which address several client needs would have an advantage over others. These products could include lending solutions targeted at small business funding, risk management, education funding, insurance or even emergency and funeral funding.

Apart from looking at how borrowers utilise their loans, the research also focused on public perception of both finance houses (unsecured non-bank credit providers) and banks and identified where microlenders can place their focus to ensure they are the preferential choice. Most importantly, banks were identified as being strict and unwavering while finance houses were perceived to be flexible in their terms and conditions. It is this flexibility and ability to give individual attention which microlenders should see as an opportunity to set themselves apart from banking institutions.

Interestingly, focus group respondents also highlighted flexibility as a key reason for remaining at a particular finance house as it was perceived to be an indication of good customer service. In addition, the formation of strong long lasting relationships based on an understanding of clients’ needs was seen to encourage loyalty to one credit provider. Here again smaller microlenders often have the advantage of being able to form personal relationships with clients more easily than larger institutions.

The research also looked at one of the main reasons consumers look to the traits of good customer service, flexibility and established relationships when selecting a credit provider - namely because these are the elements they will rely on during times of stress. Defaulters present in the focus groups indicated that they tended to default on repayments not necessarily as a result of poor debt management but rather due to loss of income/employment and because during these times flexibility on the part of the credit provider was essential. The concept that several borrowers apply for loans as a result of desperation points to the need for microlenders to strive for openness and flexibility and to accommodate borrowers, where possible, in challenging situations.

Apart from the traits mentioned above the research also identified other factors which research respondents named as being pivotal in selecting a credit provider. These included: minimum documentation requirements, no waiting period for approval, loans paid out immediately and fixed interest rates.

The research also indicates that the awareness level of credit providers registered with MicroFinance South Africa or the National Credit Regulator is low. Although clients realise the necessity and importance of credit providers to be registered with both bodies, this is currently not a key driver for choosing a credit provider. Clients are typically accessing funds for emergencies and tend to be desperate. Consumers thus consider registration or non-registration to be less important in the scheme of their needs and as a result continue to approach “loan sharks” for loans despite their knowledge of the risks associated with them.

This instant need for cash in times of desperation is often the main reason why respondents indicated that they still made use of “loan sharks” or “mashonisas”. Ultimately, as a result of the stringent terms and conditions of credit providers and strong relationships formed with “mashonisas” in the community several respondents ended up returning to them in times of need. To ensure that they counteract this microlenders need to promote themselves as a dependable source that consumers can turn to in times of desperation and emergencies for quick and efficient assistance.

However in today’s competitive environment, even if you offer superior customer service, flexibility, personal attention and efficient loan processing – this means nothing if your target market isn’t aware of it.   You need to ensure that you are utilising the correct channels for advertising to reach your intended audience. When asked which channels they make use of to gather information on credit providers the respondents pointed to newspaper, the Daily Sun as their main source. Second on the list was word of mouth – again pointing to the importance of having high customer service levels and strongly formed relationships. Other sources consumers indicated they turn to for information on credit providers include: pamphlets, television, radio and commuter advertising. It is worth noting that the internet does not feature on this list indicating that perhaps for microlenders this should not be their sole reliance for marketing purposes.

Ultimately, the research indicates that those in the microfinance arena should focus on offering high levels of customer service supported by flexibility and timeous and efficient loan applications to ensure customer satisfaction. They should also investigate opportunities to offer a one-stop-shop solution to cater to individual needs and focus on delivering services that appeal to those requiring a loan during emergencies. Ensuring that you are marketing and advertising through the most effective channels is also essential to ensure you are reaching your target market and positioning yourself as a front runner in the industry. As competition in the industry increases one cannot overlook any opportunity to secure clients and by understanding consumer behaviour and taking note of possible opportunities, microlenders can position themselves as the preferred source in the lending arena.

The research above was conducted by the MFSA and findings were based on six focus groups conducted in both Gauteng and the Eastern Cape across both male and female black South Africans, aged 25 -65 and from LSM’s 3 to 8. The groups also included both defaulters and those that held current loans at banks and other finance houses (both MFSA registered and non-registered unsecured non-bank credit providers).

This article compares two manual water pumps operating in the same general geographic region: the Zimbabwe Bush Pump B-Type, and the South African PlayPump ®. The Bush Pump is concentrated mainly in Zimbabwe, though the pump is also manufactured and installed in other Southern African countries. Standardised in 1987, approximately 30,000 B-types had been installed in Zimbabwe by 2010, 12,000 of them since 1998. Over the equivalent period, from the mid-1990s till 2010, about 1,700 PlayPumps had been installed, mainly in South Africa, but also in Swaziland, Lesotho, Zambia, Malawi and Mozambique.

The ‘B-type’ Bush Pump is the latest version of a hand pump invented by a colonial water officer in Rhodesia in the 1930s. First redesigned in the 1960s for the Rhodesian government as the ‘A-type’ Bush Pump, in 1987 it was redesigned and standardized for the Zimbabwe government by engineer Dr. Peter Morgan. The trajectory of design for the Bush Pump over time has been to reduce the number of its working parts, increase its durability, and facilitate user maintenance of the pump. Users are intended to perform basic maintenance of the pump, while local, provincial and national repair crews undertake heavier repairs, funded by the state. The B-type is a conventional hand pump, operated by an adult or child through the up-and-down motion of the pump handle. In 2010, the hardware cost for an average pump installation was about US$1,200.

The PlayPump, first installed in a rural district of KwaZulu Natal in 1993, uses a conventional borehole pump similar to the Bush Pump’s, but with a novel addition: instead of a handle, the pump is driven by a children’s roundabout. The motion of the roundabout pumps water to an elevated water tank. The maintenance system for the PlayPump is also novel: billboards installed on the water tank are rented out for advertising to fund the maintenance of the pump. Maintenance is carried out by the company that manages the advertising on the billboards, Roundabout Outdoor, in response to SMSes and phone calls from pump users. Until 2010, the total cost to a donor for a PlayPump was US$14,000, including installation. The hardware cost in 2008 was approximately US$5,600.

The PlayPump’s two novel additions to the conventional hand pump, which promise work accomplished through play, and a self-sustaining maintenance system, have attracted an extraordinary amount of attention to the project. After winning a World Bank Development Marketplace Award in 2000, and through a series of positive reviews in the international press, the project accelerated rapidly. The UK company Global Ethics brought out a bottled water brand, One Water, to help fund the PlayPump, and the Case Foundation in the US set up the fund-raising organization PlayPumps International. PlayPumps International ran very successful campaigns to gather donations online, organizing major concert tours and celebrity endorsements. In 2006 the Case Foundation partnered with USAID and the President’s Emergency Plan for AIDS Relief to present PlayPumps International with a grant for US$16.4 million, intended as the first installment in a commitment to raise US$60 million to roll out PlayPumps across southern Africa.

But in 2009, support for the project began to decline sharply. Critical press reviews and blog posts, and previously unavailable reports on the PlayPump by UNICEF (2007), and by the Mozambiquan government (2008) identified a number of problems with the project on the ground. Children’s play was not an adequate source of input to the pump, so adults had to turn the roundabout by hand, and they found this much less efficient than a hand pump’s lever. Users were also dissatisfied, particularly outside South Africa, with the amount of time it took for faults to be repaired. In addition, a lack of advertising uptake on the PlayPump was identified, with many billboards blank, indicating that funds were not coming in for maintenance. The Case Foundation withdrew from the project and dissolved PlayPumps International in early 2010.

The dissatisfaction of users of the system was compounded by the fact that, contrary to the impression created by the PlayPump’s publicity, the project did not bring water where there was none before, but were usually placed on existing boreholes, replacing hand pumps. Where users had hand pumps before, they preferred these, and complained about a lack of consultation in their choice of technology. PlayPumps are also much more expensive for funders than conventional handpumps. As a position statement on PlayPumps by the charity WaterAid noted in 2009, at a cost to the donor of US$14,000 for a single PlayPump, four conventional hand pumps could be installed.

One Southern African country in which PlayPumps are not installed is Zimbabwe, because the state there will not enter into an agreement with the PlayPump’s producers to waive import duties on its hardware – and Zimbabwe has its own successful national hand pump, the Bush Pump ‘B-type’, which it encourages water and sanitation organisations working in the country to adopt. The Bush Pump, as noted, is designed to be a simple, robust hand pump, which outperforms many similar hand pumps.

The Bush Pump is the subject of a much-cited paper by science and technology scholars Marieanne de Laet and Annemarie Mol , ‘The Zimbabwe Bush Pump: Mechanics of a Fluid Technology’ (2000). In their paper, de Laet and Mol argue that what makes the Bush Pump an appropriate technology is its ‘fluidity’ – a quality they define in part as the pump’s ability to keep working even in disrepair, and in the pump’s changing configuration over time as it has been progressively redesigned.

The boundaries of the pump are ‘fluid’ too in that they embrace its users: the trajectory of its design has been to make it as open as possible to maintenance and repair by its users, and communities are involved in siting and managing pumps. This makes it more likely that the pump will keep working even when it breaks. Redesign of the pump has been in response to observations of its use – de Laet and Mol describe the Bush Pump’s designers as ‘fluid’ in their letting go of control, in learning from how people use the pump.

Some of the PlayPump’s problems could conversely be attributed to its lack of ‘fluidity’. Maintenance of the PlayPump is not possible by users, and repairs must be undertaken by the pump’s producers or by their contractors in other countries. This has contributed to long delays in the repair of pumps. As opposed to the ‘open’ configuration of the Bush Pump, the PlayPump’s pump is sealed within the roundabout, and users cannot undertake even minor repairs or maintenance. Users do not seem to have been effectively involved in the siting and management of pumps.

In contrast to the Zimbabwe Bush Pump, there has been little change to the design of the PlayPump over time, and little evidence of responsiveness to how the technology is experienced by users. Both UNICEF’s and the Mozambiquan government’s reports on the PlayPump recommended that users be given an informed choice of water technology, and that the system’s maintenance and advertising system be made more locally accountable. Part of the problem with the PlayPump has been that its ‘success’ has been driven largely by its appraisal by bodies other than the users of the technology. There is ample evidence of its success as an image: press reports and comments on social networking sites testify to how compelling audiences removed from the project find its message of work accomplished by children’s play.

The importance of this image, which relies on the roundabout as input to the pump, has arguably ‘frozen’ the development of the technology on the ground. Maintaining the effectiveness of its image has restricted its ability to change in response to what is learned from its use, so reducing its ‘fluidity’ in response to the user. This situation is exacerbated by the highly unequal actors connected by the PlayPump: developing world users and ‘first world’ audiences. The PlayPump facilitates a situation in which users of the technology must perform to a script written for audiences to it – in conforming to the image of play accomplishing work, adults must push a children’s roundabout around in a parody of play.

The story of the PlayPump highlights a risk inherent in the growing reliance on first world audiences to fund and support design for developing world users: that projects which are effective story-tellers and compelling image-makers may be selected for over technologies whose main effectiveness is for users, not audiences. Though it is possible to improve the design of the PlayPump, both in its hardware and in the way it engages with users, a more fundamental question precedes this: is the PlayPump responding to a real need? If the trajectory of its development has been determined from the outset not by its success with users, but with external audiences, then perhaps advancing the development of existing technologies with a proven record of success for users would be a more appropriate course of action.

Article commissioned and edited by Design With Africa, and written by Dr Ralph Borland.

Landmine Clearance To Help Eradicate, Global Food Aid Programs With Compassionate Capitalism.

Durban, South Africa - A leading British firm at the forefront of Landmine detection capability has today ( Wednesday 19^th October) signed a multi million dollar share exchange deal with US quoted firm NHS Health Solutions, Inc (NHSH) (Pink Sheets).

Mineseeker Operations Overseas Ltd (Mineseeker), founded by former Virgin Airship & Balloon company CEO Mike Kendrick, a long time friend and former business associate of Sir Richard Branson, has developed a unique means of locating landmines in war torn and post conflict countries. 

The deal will see Mineseeker become a wholly owned subsidiary of NHSH and will allow the company to raise funding for the development and roll out program of its Mineseeker technology and its subsidiary applications. The deal will see the Mineseeker management team have the majority equity position in NHSH with Mike Kendrick appointed as Chairman, Ed Cross as CEO, Mark Dorey as Commercial Director, Richard Trueman as Operations Director and Jeff DiGenova as President (US).

Kendrick’s company, Mineseeker, an aerial survey and mapping company, has developed the unique landmine detection technology in conjunction with the British Ministry Of Defence and American Defence contractors. The groundbreaking technology has been extensively trialled in Kosovo, Croatia and the USA using airships and rotary (helicopter) aircraft, which can currently survey up to five square kilometres per day. Its advancement in locating landmines has life changing ramifications.

It is estimated by the United Nations that there are up to 100 million landmines located in 70 countries around the world. Landmines have maimed or killed more than 1 million people across the world to date and every nineteen minutes someone is affected by a landmine. With current detection methods it will take, according to the UN, up to 600 years to rid the planet of landmines and cost in the region of $50 Billion. Utilising Mineseeker technology and mobilising a fleet of twenty-five aircraft, the current estimated timeframe could be reduced to approximately 30 years, and the cost reduced by a factor of ten.

The new innovative and advanced lightweight technology uses ground penetrating synthetic aperture radar (GPSAR) and photo mosaic technology to produce a fusion of “Multi-Spectral and Imaging Radar” (MIR)™ of both surface and sub-surface targets, designed specifically to locate landmines and unexploded remnants of war. The company has also developed other detection applications and will be looking to launch “Aquaseeker”, “Airseeker”, “Threatseeker” and “Landseeker” in due course. Mineseeker remains the only company to have demonstrated MIR™ technology in an operational environment to date.

Commenting on the deal Mike Kendrick said;

“Mineseeker technology represents a significant and major step forward in the detection and mapping of landmines both in war torn and post conflict countries. The deal with NHS Health Solutions, Inc will allow us to seek further funding to roll out our Mineseeker program over the next five years”

“More significantly, as a result of deploying Mineseeker technology, there is a significant humanitarian benefit. Working closely with Governments, funding and development agencies, we will be able to deploy the technology and rapidly clear land of unexploded ordnance. We then return this land back to local communities in partnerships, turning land that was previously worthless into valuable land and offering commercial opportunities to participate in. Typically this could be in areas such as the harvesting of coconuts, or liberating oil, gas and mineral deposits. Not only does this return the land to economic use, but it also empowers local communities to harvest and grow their own crops whilst becoming self-sufficient”.

Kendrick continued; “This is a real and significant development towards making emerging post conflict countries self sufficient and less reliant on global food aid programs. These programs have collectively cost Governments and the UN trillions of dollars in food aid since they first began after the Second World War. In 2010 the UN World Food program requested US $6.77 billion in food aid from member countries, US$3.7 billion was pledged, but only US$1.8 billion was actually provided. Despite the food aid programs spanning more than fifty years and costing trillions of US dollars, we still haven’t solved the global famine crisis. Surely it’s now time for us to re-think this problem and look at an alternative solution? I believe this is a land based wealth creation program delivering “Compassionate Capitalism” for the benefit of all.”  

Mineseeker’s technology will have a major and significant impact on landmine detection and clearance. Millions of people are affected by the proliferation of landmines and unexploded ordnance. Moreover, hundreds of thousands of square miles of land in war torn and post conflict countries are unavailable for food production, clean water is inaccessible, and roads and paths rendered impassable. During periods of heavy rainfall, landmines are liable to float away in the floods and relocate in unknown areas. Lack of available food and water supplies are just two of the many adverse consequences of landmines that can lead to other disasters including famine and aid-dependency. Landmines represent a major man-made disaster of a magnitude greater than the 2004 Asian Tsunami, the Pakistan earthquake and the ongoing Ethiopian famine combined.

Mineseeker, through its business unit Aid Free Zones, which is headed up by South African entrepreneur Eric Du Plessis, then works with Governments and land owners to develop economically sustainable solutions through its program of “Compassionate Capitalism”. “This delivers wealth in partnership with the local population thereby removing their reliance on food aid handouts, making communities self sufficient and driving self wealth generation with displaced populations.” says Eric Du Plessis, CEO for Aid Free Zone Southern Africa.

More information...

NOTES TO EDITORS

Kendrick, a compassionate entrepreneur, launched his not-for-profit Mineseeker Foundation in 2001 which was created to promote the detection, identification and removal of Landmines across the world; a cause which was close to the heart of the late Princess Diana who was an ardent campaigner against landmines. Mineseeker Foundation recruited founder Patrons Nelson Mandela and Sir Richard Branson, and then added Queen Noor Of Jordan, Lord Richard Attenborough and Hollywood actor Brad Pitt as its supporters, all of whom Kendrick personally lobbied.

Mineseeker works in conjunction with Governments, funding and development agencies, as well as local partnerships to create a land based wealth creation program, delivering compassionate capitalism for the benefit of all stakeholders

AID FREE ZONES are created when Mineseeker technology is used to prove that an area is free from the threat of landmines, thereby increasing the land available for the economic benefit of the local population. This enables local businesses to develop in partnership with Aid Free Zones in areas such as agriculture, tourism, mineral exploitation and construction.

Aid Free Zones will dramatically change the Global Food Aid programme by building economically viable communities to become self sufficient, so that they do not rely on food aid, but rather on support to develop their own business models by creating a market for products and resources.

One such success story of the Aid Free Zones is in Inhambane Province, Mozambique where Mineseeker, in local partnership with Aid Free Zone Southern Africa, is using an existing coconut plantation and has set up a processing factory. The factory was pioneered by South African entrepreneur Eric Du Plessis of Hende Wayela over the last few years, with them now forming a partnership with Mineseeker to create the first Aid Free Zone. The processing centre has been able to develop a diversified product portfolio including crude oil, as well as higher valued products such as virgin coconut oil, desiccated coconut and coconut cake. These products are for human and animal consumption as well as raw materials for use in the cosmetics industry. The Aid Free Zones are planning to plant and cultivate new plantations in the very near future.

After a review by the company’s independent accounting and auditing firm, Aid Free Zone Southern Africa has announced that its certified revenues for the coconut processing factory for August 2011 were $85,054. Its auditors also confirmed the revenue forecast of $4.5m for 2012 as accurate and reasonable in all material respects, making Aid Free Zone South Africa, a huge success story and testament to Compassionate Capitalism.

For more information on Mineseeker

www.mineseeker.com

For more information on the works of the Minseeker Foundation

www.mineseeker.org 

For further information on Mineseeker, The Mineseeker Foundation & Mike Kendrick

For US and UK : Contact: Gerard Franklin & Margaret Murray @ Frequency Media
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For South Africa : Kai Von Pannier (27) 82 926 3425 – This email address is being protected from spambots. You need JavaScript enabled to view it.