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Women in Business

A dti Special Report November 2003

Contents

1. Editorial
2. Enhancing The Role Of Women In Economic Development
• Lindiwe Hendricks
3. Mainstreaming women in the SA economy: The role of the dti
• Mmabatho Matiwane
4. Increasing The Participation Rate Of Women In The Economy
• Busi Mabuza
5. Two success stories: TWIB and SAWEN in action
• Bulelwa Qupe And Gail Downing
6. Women in Agriculture: The female farmer of The Year Competition
• David Tshabalala
7. Women in oil and Energy South Africa (WOESA)
• Stephen Pearce

Editorial

Economically successful nations are those that use their resources to the maximum capacity. For all countries, the most important resources are those of human capital, and since women comprise over half of the population, they are the one resource that needs to be brought into the economic mainstream. Hence the commitment of government in South Africa to the rights of women and of the dti in South Africa to the inclusion of women in the economy.

In the articles that follow, a range of interventions to secure and to advance the role of women in the economy is related. This extends from the dti's own Gender Unit to innovative programmes to assist women to fulfil their potential as entrepreneurs, despite the burdens of discrimination and the duties of family. We also include case studies of women in action in business.

What emerges is that while much remains to be done in the search for gender equity, several important milestones on that path have already been reached since 1994. As Deputy Minister Lindiwe Hendricks points out in this issue, women in South Africa are more active in government and policy-making, and better represented in all key fora, than at any time in South Africa's history. This can only be to the benefit of the nation as a whole.

However, it is not enough to recognise this; active measures are being put into place to create an environment more conducive to the flourishing of women in business, extending from amending regulations and legislation to improving educational opportunities and supporting family responsibilities.

Besides dti-linked initiatives such as Technology for Women in Business (TWIB) and the South African Women Entrepreneurs' Network (SAWEN), other government departments are also active in this field. In this issue we examine two such programmes: Women in Oil and Energy South Africa (WOESA) and the Female Farmer of the Year programme of the Department of Agriculture. In the case of WOESA the Department of Mineral and Energy Affairs seeks to give content to increasing both Women's Economic Empowerment (WEE) and Black Economic Empowerment (BEE) in the energy and liquid fuels sectors. Black women entrepreneurs receive training and support through WOESA to enter this formerly white male dominated industry. The Female Farmers' competition seeks to recognise and bolster the critical role women play in agriculture in South Africa, whether in subsistence farming or, in the longer term, entering the agribusiness sector, identified as a priority sector by government and the dti in terms of job creation and value adding.

Attitudes in the broader society have to change too. Nonetheless, there is already enough progress in this regard to give rise to considerable optimism around the role of women in the economy in South Africa.

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Enhancing the Role of Women in Economic Development

By Mrs Lindiwe Hendricks, Deputy Minister of Trade and Industry, South Africa

Since South Africa established its democracy there have been a number of changes in the role played by women. South African women have consistently been a significant part of our political struggle leading to the achievement of our democracy. This is relevant because today women are active in shaping the policies of our country by representation in the Cabinet, in Parliament and by holding senior positions in the civil service. Some of the examples of this are that women comprise over 30% of Parliament and close to 40% of our Cabinet Ministers, including Deputy Ministers. In addition, women Ministers have been given serious and senior portfolios in Cabinet.

Since 1994 South Africa has had to embark on a process to structurally transform our country and economy so that all the citizens of the country participate in the mainstream of the economy. To achieve this we have adopted policies that are inclusive of all citizens; we have made a commitment to good governance from both the public and private sector, fighting corruption, and adopting stable macro-economic policies. We have also instituted several social welfare programmes to extend the social safety net. These primarily target the most vulnerable people in our society, including the elderly, young children and single mothers. Women Ministers and Parliamentarians play a significant role in the legislative process, in supporting the extension of social welfare grants and in ensuring gender equality.

Through our stable social, political and economic policies and our consensus approach to democracy, we have created an environment and framework where it is possible for businesses, including those owned by women, to flourish and grow. This has contributed significantly to the continued economic growth of our

economy, which on average as been growing at approximately 3% per year over the past eight years. However, the need for development programmes targeting women to overcome business-specific constraints is still there.

Challenges and Constraints

As we continued to address women’s issues in the broader economy, we realised the need to understand the environment in which women entrepreneurs operate, including the challenges they face. Amongst many other challenges, five are most relevant to the situation of women. These include:

1. The regulatory environment,
2. Education opportunities and education systems,
3. Cultural factors, societal views and societal perceptions,
4. Management training and job opportunities, and
5. Family responsibilities.

The regulatory environment includes government legislation which can have a constraining effect on women’s enterprises. In many developing countries legislation existed that limited women’s contractual rights and their economic participation. Women were also excluded from the ownership of property, which limits their access to collateral for loan finance. In addition to these constraining factors, a high or complex administrative burden in establishing and sustaining a business has a greater negative impact on women-owned businesses and sometimes pushes women into the informal sector.

Secondly, education opportunities and education systems can constrain women-owned enterprises, as women tend to be the ones who have limited access to education opportunities. Education systems heavily influenced by our societal values and principles also play a major role in this constraint. Women’s career choices from an early age are still directed towards the softer sciences and not those in business, science and technology. These career choices can later affect women’s confidence in entering the business world and in starting an enterprise in what is perceived to be a male domain. Gender blindness in the mathematics and science curriculum at secondary school and tertiary level has consistently discouraged women from entering these fields. The result is a shortage of skilled women in the technology-intensive industries that are key to the success of an economy.

Third, cultural and societal values and perceptions continue to oppress women. Cultural attitudes also discourage women from taking risks in business and accessing information as well as preventing them from getting equal access to procurement opportunities. Certain negative cultural aspects in patriarchal societies make women more vulnerable to being victims of crime and gender-based violence. The social environment also discourages women from pursuing career paths in the fields of science, engineering and technology sectors. This happens in the technology-intensive industries, applied technology and in other knowledge industries.

Fourth, the limited access of women to management training and relevant job opportunities has a negative impact on women entrepreneurs. Often women in the workplace are concentrated in the least skilled or lowest paid jobs; this limits their access to management technical training and denies them the on-the-job management experience that would enable them to successfully manage an enterprise. Such knowledge is difficult to teach, for example in government-supported training programmes, as it is often acquired through experience in the workplace.

Fifth, women's family responsibilities can often result in additional financial burdens as well as increased household responsibilities. For example, a lack of affordable childcare facilities for young children creates an additional burden for the mother who would like to start her own business.

These five constraining factors result in a number of difficulties for women entrepreneurs, such as getting adequate finance, gaining adequate skills to start and manage a business, the risks of crime and violence, lack of access to information and often poor use and understanding of technology. It is therefore necessary to respond to these different constraints through appropriate support measures.

Subsequent to identifying these constraints facing women entrepreneurs in South Africa, we have developed a number of measures to systematically address them. In addition, we are continually seeking to support more women in business and increase their chances of accessing new markets.

Some of the measures that we have adopted to support women entrepreneurs in South Africa have targeted women from various business sectors and include both legislative and support programmes.

Women Entrepreneurs Network

Our initial response to the constraints in the regulatory environment was to entrench the principle of equality where all citizens are equal irrespective of sex. We also undertook to identify the problems that our regulatory environment creates for women and have been finding ways to improve this situation. Furthermore, we have assisted the private sector to establish a network of women entrepreneurs, called the South African Women Entrepreneurs Network, or SAWEN. SAWEN will amongst other things, act as an advocacy organisation on issues of how government can improve the regulatory environment for women in business. It is however clear that even with the removal of the regulatory impediments facing women, we still need specific programmes and support initiatives to assist women in business to become equal players in our economy. Women and Technology

Through my department, the national Department of Trade and Industry (the dti), a programme called the Technology for Women in Business programme (TWIB) is being supported. TWIB is aimed at encouraging women to access and use technology in order to increase the strength of their business. Another intervention by TWIB is to encourage young girls to enter the fields of science and technology.

When TWIB was initiated, we decided that our way of doing business would involve visiting the provinces of South Africa to reach out to all women entrepreneurs, irrespective of their geographic spread. Through these provincial visits, we get the opportunity to popularise TWIB, grow TWIB and, more importantly, engage women in owning small to medium enterprises on the doorsteps of their homes.

As the champion of TWIB, my role and responsibility is to ensure that each year TWIB successfully achieves its objectives. We must ensure that TWIB continues to address the global challenges faced by all women entrepreneurs as they engage with science and technology for their own benefit. Let us not forget that at a national level, TWIB’s role is to ensure that women involved in arts and craft, manufacturing, mining and energy, construction, tourism, and information and communication technology are made aware of and empowered to adopt technology and science as an integral business solution that strengthens their enterprises irrespective of size and location. This is the main objective of TWIB.

As world economies went through a transition in the 1980s and 1990s, globalisation became a major force with which to reckon. Through globalisation came a shift away from traditional approaches to adopting technological advances and sophisticated business solutions. Women’s enterprises, as those always occupying the lowest ladder of the economy, were undoubtedly the first to be adversely affected by global change. In realising this and being committed to building a strong dynamic women’s entrepreneurship in South Africa, Technology for Women In Business – TWIB was born. The brainchild of Minister Phumzile Mlambo-Ngcuka, TWIB was officially launched in 1998 as a programme of the dti.

To anchor TWIB within the policies and strategies of the dti, its implementation and management strategy was formalised as part of the collaboration between the CSIR (as the major technology provider) and Ntsika (the agency responsible for facilitating SMME development). As part of this collaboration TWIB was fully crafted as a programme to achieve the following goals:

• Raise awareness about the importance of science and technology as a business solution whilst recognising, acknowledging and awarding those who successfully adopt it to improve the profit of their enterprises;
• Promote and nurture innovation amongst women’s enterprises that can be adopted and replicated as winning solutions for strengthening and growing enterprises in South Africa;
• Encourage girls and young women to choose careers in the field of science and technology by means of the Techno-Girls and Girl Child programmes;
• Encourage technological solution-based research responding to the needs of women-managed and women-owned SMMEs by means of the Technological Partnership Programme; and
• Promote cooperation between SMMEs and large private and public corporations, including science councils that will support women SMMEs.

TWIB’s long-term objectives are and will continue to be to increase the number of women entrepreneurs who are aware of, understand and apply technology for the development and growth of their services, products and enterprises. Through the support of the CSIR, Ntsika and various partners, TWIB has worked towards attaining this objective by designing and delivering services that target women entrepreneurs involved in various sectors. This has been deliberate because science and technology cuts across business in all sectors. Activities that have been implemented have included the following:

• Arranging the annual TWIB Conference and Awards, which recognises the achievements of individual women in their use of technology and promotes role models of businesswomen who have been successful in their use of technology;
• Organising technology demonstration workshops, which show businesswomen what technology is available, how to use the technology and where to access it;
• Facilitating linkages between women in business and technology service providers, such as the CSIR, which is able to provide technology support to firms;
• Instituting technology transfer programmes, where women in business are assisted to acquire new technology;
• Running technology training courses for women in business; and,
• Exposing South African women to international trends in Science and Technology.

As part of nurturing the "Girl-Child" aspect of TWIB through Techno-Girls, young girls have been encouraged through national workshops to enter and stay in the fields of science and technology.

Before TWIB could claim a privileged status in the lives of women’s enterprises, it had to engage with its shortcomings and deal with these head on. Some of these challenges included operating with no formal budget. Thus we had to depend on independent sponsors to sustain the initiation of this project. On top of this, TWIB had to deal with staff and infrastructure limitations before it was properly housed at the CSIR. The biggest challenge was to convince supporters and especially to convince women that adopting technology as a viable business tool is the answer for their enterprises. For TWIB to do this, it had to find a creative way of demystifying technology, which was about finding the simplest way of explaining what is meant by this monster called technology. Addressing the culture and the gender stereotypes associated with women and technology also proved to be a challenge for TWIB.

But TWIB had to go beyond the basics of merely raising awareness and demystifying technology. It also meant assisting women entrepreneurs to actively search, identify and adopt different technologies to deal with the daily challenges of their enterprises. Responding to this through hands-on training workshops, visiting other countries to learn and through incubating women’s business became the focus of TWIB.

Business technology-based solutions identified through TWIB must enable women to be innovative and creative when developing their business products. Their products must compete and find a place in the international markets and be branded proudly South African. These should be accompanied by uniqueness, excellence, sophistication and professionalism. It is only once these qualities are embraced as part of our manufacturing, designing and delivery standards that South African women-produced products will excel in the international market. The proper marketing and promotion of these through the maximum use of technology is critical and should be our business priority and form a key part of the recipe for more rapid economic growth in South Africa.

Through TWIB, women’s enterprises have the ability to reduce the inequalities, both in terms of gender and race. The gender inequalities between men and women have mainly been entrenched through traditional societal roles. Women have always had to engage with multiple tasks that sometimes involve long and intensive labour. The challenge of TWIB through the adoption of science and technology will be to assist in lightening women’s burdens as enterprise owners and managers, as well as caregivers. Cutting down on unnecessarily long and sometimes expensive labour-intensive processes will free women to engage in more business activities and improve on this, while being caregivers. Through the intensification of our Techno-Girls programme, TWIB must continuously ensure that the current gap existing between boys and girls is reduced and, ultimately, eliminated. The more girls are trained in science and technology, the better the future of our economy. Addressing the race gap will mean entrenching and adopting black economic empowerment (BEE) principles and elements as part of TWIB, where black women are brought into the business mainstream.

Policy and Programme Support

From creating awareness TWIB has grown into other sectors e.g. in minerals and energy, IT and ICT, agriculture, arts, culture, science and technology.

The Department of Science and Technology has a special focus on supporting women in the science, engineering and technology arenas. This is to ensure that there are greater number of women in these fields and women are able to become entrepreneurs in these sectors. Through the Minister's awards for the top 100 women companies in technology, women are being recognised for their outstanding achievements.

Through the Department of Agriculture, women have also been placed in the forefront of the agriculture industry. Every year a top female farmer is honoured for her outstanding contribution to the sector. An award goes to women who have managed to succeed in export markets, the national market, and informal producers markets. Those who have been honoured have become change agents for improving the conditions for women in the sector and encouraging more women to become involved in agricultural production.

In responding to education constraints, the Department of Education is looking at promoting an entrepreneurial culture through the school system. This involves introducing entrepreneurial training as part of the school curriculum and also training teachers on the subject. Youth entrepreneur development programmes are also being provided by non-government organisations, whilst the private sector is engaged in programmes aimed at exposing young girls to the business world.

The National Treasury is attempting to address the constraints of societal perceptions mentioned earlier. Through our Preferential Procurement Policy we have ensured that women-owned businesses receive preference when tendering for government contracts. Such efforts have resulted in an increased number of women-owned enterprises in previously male dominated sectors like telecommunications and construction.

There have been a number of changes in the minerals and energy sectors, which have resulted in an increasing number of women entering these fields. Currently there is a restructuring of the mining industry in South Africa, which includes increased participation by women in this industry.

The dti assists women-owned enterprises in many areas and all the support measures that we offer businesses are available to women-owned enterprises. We are also actively ensuring that there are greater opportunities for women in accessing international trade and international markets by making sure that women-owned enterprises are included in trade missions and international exhibitions. This reflects the dti's own commitment to gender equity and the advancement of women in the mainstream of the economy. TWIB and SAWEN are but the tip of the iceberg in terms of the priority given by the dti to women-related issues in the economy across all its programmes and, indeed, in cooperation with other national departments and stakeholders across society.

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Mainstreaming Women in the SA Economy

The role of the dti

By Ms Mmabatho Matiwane, Head: Gender & Women's Empowerment Unit, Department of Trade and Industry

the dti approaches the empowerment of women entrepreneurs in the South African economy in three important ways. First is to bring to the forefront of the dti's operations across the board a sensitivity to gender issues and the promotion of Women's Economic Empowerment (WEE). Second are specific programmes targeted only at women to unleash their potential as entrepreneurs. Third is the integration of WEE principles and requirements into economic policies and strategies emanating from the dti, most recently in the dti's "Strategy for Broad-Based Black Economic Empowerment" (March 2003).

Gender Policy and Strategy

the dti recently completed its draft policy and strategy guideline document on Gender Policy and Strategy. The document brought together several initiatives aimed at mainstreaming gender equality into the policies and practices of the department. Gender considerations must be integrated into every policy, programme, institutional practice, resource allocation and monitoring and evaluation system of the dti. The framework provides the rationale for mainstreaming gender equality and points to the key action areas. It also proposes institutional mechanisms, a process and a timeframe for ensuring that gender equality is systematically taken into account in all the department's work.

To facilitate the effective and successful implementation of the gender policy and strategy framework, the Gender Unit, now referred to as the Gender & Women's

Empowerment Unit, is now fully integrated as part of the Enterprise Industry and Development Division (EIDD). EIDD, the main enterprise development policy division of the dti, is currently responsible for fast-tracking the implementation of the Broad-Based Black Economic Empowerment Strategy.

Project Support

Women's Entrepreneurship

In 2001 the dti established the South African Women Entrepreneurs' Network (SAWEN) which provides a strategy for fast-tracking support to women in addressing the challenges of establishing, strengthening and sustaining their enterprises. After intensive consultation with women entrepreneurs from the provinces, SAWEN was officially launched by the dti in June 2002.

SAWEN has now recruited some 2 000 members from all over South Africa. With a completed constitution and a business plan, SAWEN promises to link women entrepreneurs to business opportunities.

Through SAWEN the dti has successfully secured two strategic partners to support women entrepreneurs. These include the Johannesburg Security Exchange (JSE) to provide training to women on stock markets. Through the Africa Project Development Facility (APDF) SAWEN members will also be able to access business advice and support for the successful management of their enterprises.

Through Ntsika the dti has continued to provide business support to women in business. The 2002/03 Ntsika report on business incubation reveals that of the 50 enterprises that were incubated, 30% of these were women-owned. Of the 159 enterprises that received training and technical assistance, 40% were women-owned.

Technology for Women in Business

The Technology for Women in Business (TWIB) programme was initiated by the dti to assist in the integration and adoption of latest technologies into WEE. The aim is also to expose women in general to technology innovation, to demystify the concept of technology and to assist women-owned enterprises to become globally competitive.

Apart from supporting women in business through technology, the dti has also been involved in increasing the quality and quantity of appropriate skilled people. Through the Technology and Human Resources for Industry Programme (THRIP) female students have been identified as a special target group of this programme. In the year 2001, of the 2 394 students who received support, 887 were black whilst 713 were female. The challenge and the priority for THRIP is to improve and monitor the number of black female students in particular.

Financial Support

Rural women have continued to be on the agenda of the dti women's empowerment initiative. Through the Khula Start programme, a project of Khula Enterprise Finance, 87% of the black enterprises that received support through accessing micro credit were women.

Another major financial intervention by the dti to provide financial support to women in business has been through the Industrial Development Corporation (IDC) and the Development Bank of South Africa (DBSA). Both these institutions have provided anchor funding to the total of R85 million for the Women's Private Equity Fund 1. Officially launched in February 2003, the Fund is a multifaceted empowerment investment initiative aimed at providing capital for growing women's enterprises.

A Gender Analysis of the BEE Strategy and Process

There is no doubt that the black economic empowerment (BEE) policy and its proposed legislation has been the first economic policy initiative to deliberate on women’s participation at an early stage. This bears the testimony of many women who believe that without the element of full integration and appreciation of women’s economic empowerment in the BEE Bill and strategy, the process will not deliver the desired results for all South Africans.

In the past the integration of gender equality has often featured as an afterthought. With this in mind, there is hope that if the concerns of women are taken seriously, BEE will bear positive social and economic results.

Women, in particular black women, are in the majority in South Africa. This, together with the fact that women also form the majority of the poor, legitimises their inclusion. South Africa is currently experiencing an increased interest by, and representation and participation of women in the broader economy. This has been witnessed with the recent appointments of women in executive corporate positions and in the field of entrepreneurship. Women (particularly in Gauteng province) are actively seeking opportunities for the acknowledgement and recognition of their enterprises as equal partners in the economy. Interestingly, this is also happening at all the different levels which are critical in making their mark i n the broader South African economy.

The participation of women in the BEE process should, however, never be reduced to minimal representation in few economic structures as it is today. As stated by our President, the centrality of Gender Equality in BEE is critical simply because the reality of the two nations referred to is also gendered, besides it being racialised. Women, and in particular African women, continue to be discriminated against on the basis of their race and their gender.

Integrating Gender Equality in the BEE process should also not be mistaken as a matter of "political correctness" or "social kindness to women", as many think. It should also not be seen by big corporates and our black male business partners as a way of "qualifying" to access resources allocated for BEE. Gender equality is also an issue of economic efficiency. It is a strategy and a mechanism for alleviating poverty, which is a major factor for determining economic progress. It is also a primary social investment required for eradicating other related social problems critical for facilitating economic growth.

Within the South African government gender equality is adhered to as a critical quality of good governance. As a result South Africa is seen internationally to be leading on the issue of empowerment of women. Gender equality can lead to the economic development needed for growing the South African economy through the promotion of equal access to economic opportunities and resources. This on its own is a vital element for facilitating and fast-tracking economic growth in South Africa. Ensuring equal distribution of the country's economic resources to women is part of promoting and ensuring economic development in South Africa.

The sentiments of the draft BEE strategy, as indicated by Trade and Industry Minister Alec Erwin, are about widening the scope of empowerment by spreading ownership among smaller players, providing another opportunity for empowering women. Granting women ownership of economic resources has been strongly advocated in guaranteeing their independence and security for their future. In fact, this is the first concrete initiative from government to deliver sustainable economic independence to women.

The fact that BEE strategy is part of the broader economic growth strategy automatically widens the scope for women’s involvement in the broader South African economy. BEE rightfully and strategically emphasises and legitimises the role of women in growing our economy. The broad-based nature of the strategy aims at ensuring that not only the black elite are to benefit. The inclusive principles of BEE mean that both men and women as economic citizens and owners of enterprises will be included in this process. The challenge in all of this is for women to "invade the space", as often said by business leader, Ms Gloria Serobe. Women need to lobby and engage government and big business for their fair share in the economy based on the opportunity provided by BEE. The submissions forwarded by SAWEN on behalf of women entrepreneurs should be used as another basis for this.

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Increasing the Participation Rate of Women in the Economy

By Ms Busi Mabuza, Executive Manager, Glenhove Fund Managers

In order to achieve a more gender-balanced economy in South Africa, we undoubtedly need systematic institutional interventions aimed at accelerating the participation rate of women in the economy.

Economists define the "participation rate" as the percentage of the economically active population currently employed or actively seeking employment.

However, at this stage of the economic development of our new democracy, it behoves us to look not only at the participation rate in the classical economic sense. For the purpose of this article, we will look at four facets that need to be addressed if South Africa is to make any meaningful progress on creating a gender-balanced economic platform:

Increase the participation rate of women in the savings pool of the country;

• Increase the participation rate of women entrepreneurs in funding and financing pools that are available to South African businesses;
• Increase the labour force participation rate in the classical economic sense of the phrase; and
• Increase the participation rate of women in specialised skilled careers such as those available in the scientific, financial and technology fields.

Women and Savings

In a study by J W Prinsloo, "The saving behaviour of the South African economy", disconcerting trends on the saving patterns by the household, corporate and general government sectors are uncovered. As is apparent in the following table, the personal saving (household sector) has been on a secular decline over the past two decades, reaching precariously low levels in the late 1990s:

Year	Households	Corporate
1980	9.1%	19.1%
1981	4.6%	17.9%
1982	4.5%	13.6%
1983	4.1%	17.8%
1984	6.3%	15.2%
1985	8.0%	15.4%
1986	6.4%	16.2%
1987	6.8%	15.3%
1988	6.8%	14.9%
1989	6.6%	15.0%
1990	4.8%	13.8%
1991	4.7%	14.2%
1992	6.5%	14.9%
1993	5.3%	15.8%
1994	4.2%	16.5%
1995	3.6%	15.2%
1996	3.5%	15.4%
1997	3.4%	13.9%
1998	3.0%	12.9%
1999	2.9%	12.6%

Source: Occasional Paper No 14, SARB: November 2000

Several arguments have been advanced as to why this country’s savings rate has been on the decline. These include a global decline in household savings and the deterioration of the debt-to-income ratio for South African households. What has however been lacking are proposals and arguments on how to reverse these unhealthy trends.

One important intervention that has the potential to stimulate a culture of saving by women is the opportunity to access more information that would enable women to make informed investment decisions. For the majority of the older women in this country, saving for a rainy day customarily meant joining a burial society. As we grew, professionally and otherwise, we were introduced to the stokvels, which are a more general form of co-operative savings where money is circulated amongst the different members of the stokvel. These two forms of savings vehicles still attract a significant share of the ordinary citizens’ savings pool, despite the trivial financial returns that they offer. These vehicles have remained important partly due to the comfort factor (a form of "psychological return") they offer in a time of need.

It was thus pleasing to observe, earlier in 2003, the launch of an agreement between the JSE (Johannesburg Securities Exchange) and SAWEN (South African Women Entrepreneurs Network) which, inter alia, committed the two entities to contribute to the education of women on investments. Such an initiative will of course be judged by its ability to increase the breadth and depth of our investment knowledge amongst women.

Women need to be challenged to go beyond traditional investment vehicles in order to enhance their ability to earn a return on their investments.

Not nearly enough women have formed individual investment vehicle savings clubs or investment clubs, enabling them to pool their resources and take advantage of investment opportunities. This reality then grows into a vicious cycle because by the time those with an entrepreneurial flair seek to raise capital to fund business initiatives, they often do not have the collateral or do not own equity capital that is needed to attract other funding or to get the targeted projects off the ground.

One must of course acknowledge and accept that there are other contributing factors to the struggles that women face when trying to access capital, but there remains the possibility that with access to useful information women can grow their savings and investments to a meaningful level. It is on the basis of this possibility and the opportunity that this presents that women should seek to:

• understand the risks inherent in the capital and other investment markets; and
• find and understand the tools that will enable them to assess the risk-return tradeoff of the investment decisions made.

This very simple intervention should have a direct impact on increasing the savings rate in the economy.

Women Entrepreneurs

The lack of access to finance, especially for women entrepreneurs, is unfortunately a problem that South Africa shares with many other developed and developing economies. The Black Economic Empowerment Commission, in their Commission Report, had this to say about the women participation rate in the economy: "While the State has provided preference for women-owned companies in its tender guidelines, there are few dedicated instruments aimed at enhancing the participation of black women in the economy."

Lack of finance is one of the primary factors impeding women from reaching their full economic potential in South Africa. Despite the policy interventions designed to alleviate the constraints in the small business sector, women entrepreneurs remain at the periphery.

Traditional structures, lower wages due to discriminatory practices and sometimes the lack of information have contributed to women’s inability to accumulate personal assets which in turn adversely affects their ability to raise loan and other capital which requires collateral underpin.

The 1995 October Household Survey classifies the majority of South African women as living in rural areas which, almost by definition, are the poorest in the country. In contrast, less that 25% of the male population falls into this category. Despite the near parity gender segmentation of the population, male-owned enterprises far outnumber those run by women.

The specifically directed financial interventions that were called for by the BEE Commission will serve as an important catalyst to accelerating the participation rate of entrepreneurial women in the economy.

Women and the Labour Force

The South African employment statistics speak for themselves. In May 2003, the Commission for Employment Equity released it’s 2002 Annual Report, which contained some shockingly disappointing statistics on the labour force participation rate of blacks in general and of women in particular. The anecdotal evidence both in the public and private sector confirms the report’s findings that only 36% of employed people are women! This, despite the fact that women represent just over 50% of the total population.

This report also looked at the ‘representativeness’ of the different population groups in the different strata of the workforce. The Commission reports that only 12% of all top management positions are occupied by women. This factor lies at the core of the labour force participation rate issue. Black women in South Africa earn an average of 20% less than their male counterparts with the same educational qualifications. A negligible percentage of directors of large companies are black women. Women comprise 22% of those in managerial positions, but only 9% of these managers are black women (The Star August 2001, Colleen Lowe Morna, CEO, Commission on Gender Equality, 1998/99).

It is important to acknowledge that post-apartheid South Africa has made significant progress in strengthening the presence of women in decision-making positions. Hence the country’s favourable score on the Gender Empowerment Measure (GEM) which rates representation by females in political, administrative, managerial, professional and technical positions and female income share. The proportion of women parliamentarians is more than 30% of the total number of parliamentarians, with a significant number of women in the Executive. To the credit of the political decision-makers, the traditional mould of appointing women ministers to the social and otherwise junior portfolios has been broken. The South African Cabinet has women in charge of Foreign Affairs, Science and Technology, Intelligence, Housing, Minerals and Energy and Communication.

The private sector has a lesson to learn from politicians on how to increase the participation of women in senior and meaningful management positions. The country can only benefit from such an endeavour.

Women with Specialised Skills

In order to achieve any of the proposed interventions that we have discussed, a firm educational foundation is an unquestionable prerequisite. We have to find ways of exposing the bright and energetic young women of South Africa to educational fields and career opportunities that will be accretive to the innovative history of this country. On the rock of this foundation, much can be built into the future.

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Two Success Stories: Twib and SAWEN in Action

Women in Business:

By Miss Bulelwa Qupe, TWIB 2002 Winner

I started off as a registered nursing administrator and a Community Health Nurse, but when an opportunity for women to apply for fishing rights arose I jumped at it and before long I was passionate about an industry which I had never thought women should dabble in. I started Aqua Fish & Chips Shop in Motherwell Township in 1995 and am currently the Managing Director of this business as well as a member for Ezabantu Fishing, a close corporation owned by seven women. I was the first black woman in the Eastern Cape to obtain a fishing licence and quota.

More recently I started an exporting company, Buntu Marketing and Exporting, which is responsible for selling fresh fish to Spain. In this venture my business associate, Pesca Fresca Latandi, who exports my fish at the moment, is mentoring me. The new company is a combination of Ezabantu cc and Mazidlekhaya Fishing. I hold a 50% share and both companies have medium term rights in hake longline and inshore trawling and will be involved in buying and exporting abalone (perlemoen). The aim is to expose our product to the export market and to steadily build up the Buntu brand overseas, especially in Spain and Asia, the largest consumers of fresh fish. It was also a business move to ensure that we’ll be an active empowered company and be hands-on at all levels of the business.

My immediate plans are to expand our product base by venturing into the highly competitive and exclusive abalone processing and export business. The building has been checked and complies with the standards set for abalone exports, a South African Revenue Services approval has been granted and a Sea Fisheries permit was granted by July 2003, our deadline for the commencement of operations. We’ve already done market research and we’ll be exporting our abalone to Hong Kong. As part of our community development activities we intend offering a 10% shareholding to the black communities situated along the coast that have abalone trade permits in the new Gonubie export company. This will ensure that even after selling their abalone to us, they will receive long-term empowerment and rewards.

In the meantime I went about educating myself about the fishing industry and completed various certificate courses in business as well as completing a module in Mariculture at Honours level. Networking is key for the necessary success of economic empowerment and community development and helps to ensure that women as well as communities are informed about opportunities for empowerment. As a result I am involved in numerous community activities and serve on the task group for the development of Port Elizabeth Harbour. I am also a member of the Nelson Mandela Metropole Chamber of Commerce, the secretary of the Hake Longline Association as well as serving on the national board, an executive member of the Eastern Cape fishing forum and I am an Eastern Cape representative of the South African Women Entrepreneurs' Network (SAWEN). On top of that I juggle a marriage and being a mother to four children aged between 25 and 9.

Like almost all entrepreneurs of colour, starting out presented enormous problems, especially with access to finance. I approached the Eastern Cape Development Corporation in 1997 which offered a R50 000 loan and luckily business went well and I paid it off in two years. I used to have fish supply problems and when I heard a radio broadcast about government offering fishing rights to women, it seemed like a God-sent opportunity.

I formed a cooperative with seven interested women and, as Ezabantu, applied and we eventually obtained a quota of 33 tons of fish, an equivalent of three boat trips per annum at 12 tons each. Each year our quota increased and we’re now at 122 tons. At the moment I employ 24 people in the fishing boat that bring in our fresh fish and ten more people at the Motherwell fish and chips shop.

I have received a number of accolades for my work in economic stimulation and growth in the Eastern Cape, a far cry from humble beginnings as a township girl born in Port Elizabeth. A milestone was winning the 2002 Technology for Women in Business (TWIB) award. The prizes for the coveted award which recognises women who incorporate the use of technology in their businesses included a commemorative plaque, a 4x4 truck sponsored by Africa Harvest, a travel luggage bag from the dti Marketing division, and a laptop, software and sponsored training, courtesy of Microsoft.

The TWIB win helped me with immediate transport to run my business. I’m now able to travel around the province and do my business as a result. With the laptop I can now do business wherever I am. Personally, the award empowered me, and as a role model and TWIB ambassador I’ve been able to help other women to access business development information. It also enhanced my lobbying and networking skills. At the moment I am involved in setting up the Women In Fisheries organisation, which will be affiliated to SAWEN and will be championed by the Department of Environmental Affairs and Tourism.

Benefits from the dti included a Ntsika Enterprise Promotion Agency-sponsored trade and learning trip to Uganda where I shared experiences and learnt about the Ugandan fishing industry. I have discovered opportunities beyond the fishing industry, such as the market for commodities. I was also honoured to become part of the Deputy Minister’s business delegation to the Women's Global Summit in Morocco in June 2002.

Successful women have a responsibility to empower and lift up their less successful sisters. My involvement with the number of women empowerment initiatives of the dti has taught me that I have to do my bit for community development. Women should tackle the economic struggle with the same kind of enthusiasm and energy with which we fought the political struggle a few years back – it is the way to achieve economic freedom.

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Women Entrepreneurs:

The SAWEN Way

By Ms Gail Downing, MD of Acorn Products (Pty) Ltd,
Acorn Pharmaceuticals (Pty) Ltd, and a leading Gauteng SAWEN member

Women entrepreneurs play a very critical and important role in the economy of any country with regards to income and employment creation. South Africa recognises the invaluable potential and contribution that women can make to the economic sector of South Africa. A lot has been written about these outstanding women who are entrepreneurs, spouses, housewives, mothers and care-givers and about the difficulties they encounter as they struggle to achieve business success alone or as co-entrepreneurs.

Although policies have been introduced to enforce gender equality, these have not been felt in the daily lives of women entrepreneurs and the full economic potential of women entrepreneurs has not yet been realised. Women entrepreneurs in South Africa continue to face a discriminatory range of obstacles in their business operations. These barriers restrict women from easily obtaining access to, for example, markets, finance and the cost of finance, information on support services available and training. There is also a dire lack of support, direction and mentorship for women.

In 1999 a Ntsika review of Small, Medium and Micro Enterprises (SMMEs) recommended that the Department of Trade and Industry intervene by setting up a structure that would enable women to overcome the policy and business environment constraints that impact on the growth of their enterprises. The concept of the South African Women Entrepreneurs' Network (SAWEN) was presented at a national women entrepreneur consultative forum in July 2001 and the concept was fully endorsed by the national forum present.

SAWEN has been established as a national network organisation that facilitates and monitors the socio-economic advancement of women entrepreneurs and their positive impact on the country’s economy. The main objective is the empowerment of women so that they can obtain economic independence, take control of their lives and fully participate in the society in which they live. By creating a platform for women from different sectors and levels of the economy, SAWEN assists women to lobby for increased and better access to resources and to review the impact of policy interventions on their enterprises so that they may move for possible improvements. It is aimed at enabling South African women entrepreneurs to speak in a unified voice.

SAWEN seeks to affiliate all women enterprise groups, co-operatives, organisations and initiatives into a national umbrella body that will represent and articulate the aspirations of all women entrepreneurs (potential and existing) that operate within the South African SMME sector, as well as lobby for their support needs. SAWEN will link organised groups of women entrepreneurs to private and public sector business and development opportunities. The SAWEN catch line, "Your Link to Business Opportunities", is based on this concept. The network will reach both aspiring and existing women entrepreneurs.

The SAWEN concept will provide women entrepreneurs with solutions to their challenges by addressing the constraining factors through policy advocacy, capacity-building and facilitating linkages. SAWEN supports the success and growth of women-owned and managed enterprises by ensuring their access to t he following key areas:

• Business information and advice;
• Business opportunities;
• Appropriate skills and technology;
• Mentorship and counselling;
• Financial advice; and
• Decision and policy-making

Eight factors make SAWEN a unique organisation:

• The ability to effectively network and reach all women entrepreneurs as well as link them to business resources;
• The capacity to mobilise global and local resources and expertise plus co-ordinate service delivery;
• The credibility and information management capacity to act as the barometer of woman entrepreneurs’ contribution to the economy;
• The ability to measure the socio-economic impact of existing programs on women enterprises;
• The ability to design, benchmark and model best practice in woman entrepreneur development programs;
• Enabling access to business information and opportunities by appropriate packaging and using a communication strategy that targets women entrepreneurs;
• The provision of a women entrepreneurship lobbying and advocacy forum;
• The pioneering of a gender-balanced approach to socio-economic development;

Only with initiatives such as SAWEN will women entrepreneurs in South Africa take their rightful place in the mainstream of the South African economy.

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Women in Agriculture:

The Female Farmer of the Year Competition

By David Tshabalala, Assistant Director, Agricultural Information Services

Long age, agricultural activity was respected as the source of life, wisdom and justice. The role of agriculture in employment creation today remains important, particularly in developing countries. Life for a female farmer, whether emerging or commercial, has changed. Women farmers have to contend with the social intricacies of life, deal with the challenge of food security, and strike a balance between entrepreneurship and skills transfer.

Recently the Department of Agriculture hosted Agricultural Research Week, which coincided with the Mid-Term Meeting of the Consultative Group on International Agricultural Research. Such initiatives helped the departments of agriculture to harness relevant trade and agricultural policy research; it thus helped build research capacity in the region.

Through the Land Redistribution for Agricultural Development program new techniques are constantly being developed to sharpen the skills and raise the standards of competitiveness. The aim is to move emerging farmers to a different level, while also ensuring that our commercial agriculture remains as competitive as ever.

Allied to agriculture are projects to eradicate poverty and ensure food security. On a year-to-year basis the Female Farmer Competition sets an excellent example of public and private partnerships (PPP). It is a catalyst to empower and sustain the development of the previously marginalised in South Africa’s rural areas, where some 30–50% of the population has insufficient food.

Total South Africa has a long-standing involvement in the South African agricultural market and is arguably the largest supplier to this highly specialised market. Total entered South Africa 50 years ago and was involved in agriculture from the start. The sponsorship of the Female Farmer of the Year, which has only been running for five years, is an example of private sector commitment to innovative ways of supporting and developing agriculture.

The competition not only elevates and sustains the role of women in agriculture but also is a vital pawn on the agricultural chessboard. Ms Thoko Didiza, the Minister for Agriculture and Land Affairs, recently inaugurated two winners from the competition into the Agricultural Research Council Board. Ms Jean Davidson and Ms Ansoria Geldenhuys will be serving their term on the board. Ms Geldenhuys is also a member of the National Women in Agribusiness Cooperative (NAWACO).

The competition is aimed at both emerging and commercial farmers. This year will see an introduction of a fourth category, "Top Household Producer". This category will further strengthen the fight against hunger and the reduction of poverty.

The other three categories remain Top Producer for Export, Top Producer for National Markets, which ascertains the quality of agricultural produce for local consumption, and the Top Producer for Informal Markets. The aim is to move women to a different level where they can compete in, for example, agri-business enterprises.

This is a national competition for all female farmers in South Africa and stakeholders in agriculture. It highlights the following:

• Production of food of an impressive quality that is actively traded on the local or informal markets;
• Innovation and creativity in improving existing farming systems and leadership skills within the working environment;
• A proven commitment to care for the natural resources and demonstration of responsible use of production inputs;
• Good sense and innovation in financial management and job creation; and
• Being a role model / inspiration within the community.

The National Department of Agriculture in 1999 initiated the Female Farmer project. The aim was to empower women in agriculture by recognising their contributions and increasing their visibility. The role of women in agriculture has for many years been undervalued. The Female Farmer Competition is an instrument through which women’s contributions to the fight against poverty can be recognised. The competition is run on an annual basis. The categories for the selection process are decided by the theme chosen for the year. The Food and Agriculture Organisation (FAO) will provide the department with the theme for each year. This competition is positioned to support World Food Day.

Categories

The following are the categories for which entries are received:

• Top Exporter;
• Top Producer for the National Markets;
• Top Producer for Informal Markets;
• Top Producer for Households.

Criteria for Categories

The Top Exporter/Top Producer for National Markets will meet the following criteria:

• Be a farmer in her own right;
• Demonstrate a degree of innovation and creativity in improving existing farming systems;
• Have a commitment to care for the natural resources and ensure sustainability of these resources, as well as demonstrate responsible use of production inputs, e.g. pesticides, fertilisers and vaccines;
• Have demonstrated good sense and innovation in financial management;
• Create and retain jobs in her enterprise; and
• Be a role model in the community.

In addition, projects/programmes should:

• Add value to the lives of ordinary people;
• Have demonstrated better financial management;
• Care for natural resources;
• Provide employment opportunities;
• Be 90% women-owned; and
• Make use of innovative farming methods.

The Top Producer (groups or individuals) for Informal Markets will meet the following criteria:

• Have defined membership and roles within a properly constituted group;
• This group must comprise 90% female members and all the management/leadership positions must be filled by women;
• Have demonstrated the ability to work as part of a cohesive team for at least one year;
• Deliver a product that is of high quality in order to be attractive to outside consumers;
• Produce more than meeting their own immediate requirements (i.e. be economically productive);
• Demonstrate a degree of innovation and creativity in improving existing farming systems;
• Have a commitment to care for the natural resources and ensure sustainability of these resources, as well as demonstrate responsible use of production inputs, e.g. pesticides, fertilisers and vaccines;
• Have demonstrated good sense and innovation in financial management;
• Be an inspiration to the community; and
• Add value.

The Top Producer Households should:

• Produce enough to meet their households food security needs;
• Demonstrate innovation and creativity in improving food production;
• Have a commitment to care for the natural resources and ensure sustainability of these resources, as well as demonstrate the responsible use of production inputs, e.g. pesticides, fertilisers and vaccines;
• Inspire households; and
• Add value.

The Adjudication Process – Provinces

Coordinators obtain their MECs’ approval on the composition of the Provincial Panel of Judges and arrange site tours for the adjudication process, if there is a need. It is recommended that the Judging Panel include all main stakeholders in the competition; this will also include representatives from the agricultural unions and main sponsors.

After the judging of the entries the names of the winners are forwarded to the National Department of Agriculture.

An amount of R743 000 is distributed among the provinces for prizes and provincial events, subject to sponsorship accrual. The provinces will procure services and liaise with the sponsors to pay directly to the service providers.

A National Strategic Committee gives strategic direction in ensuring that the project output is aligned with the broader perspective of food security. It also ensures that the project impacts positively on communities and engages people at the grass roots level. This committee also links the project to the DOA and PDA's departmental programmes.

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Women in Oil and Energy South Africa (WOESA)

By Stephen Pearce, Deputy Director: Petroleum Policy Development, Department of Minerals and Energy Affairs

Government has for some time taken active steps to achieve substantive and meaningful empowerment in the various industry sectors in the pursuit of economic growth with greater equity. The oil and energy sector provides a good example of this drive. Hence the significance of the Women in Oil and Energy South Africa (WOESA) initiative, under the auspices of the Department of Minerals and Energy Affairs (DME), which was launched in March 2002 by Minerals and Energy Affairs Minister Phumzile Mlambo-Nguka.

WOESA as currently constituted is a self-standing institution with close links to DME, with a DME official represented on the WOESA board. Cooperation with the DME extends to training and development issues as well. Indeed, WOESA has its origins in various DME initiatives towards black empowerment and gender equity over the past three years.

The context within which the WOESA initiative is located is the original White Paper on Energy Policy and then a series of conferences and summits focusing on the energy sector in general and the role of women within it in particular. This includes the Summit on Liquid Fuels of 2 November 2000, the Women in Energy Conference of 11 December 2000, the Women in Oil and Gas Workshop of 6 March 2001, and the Women in African Petroleum and Energy Conference of 27-28 August 2001. In sum, considerable preparation and careful strategising preceded the founding of WOESA.

Such extensive consultation and discussion reflects the fact that in the past women in South Africa, most particularly black women, were almost totally excluded from meaningful participation (measured in terms of ownership and equity) in the oil and energy sector of the economy. This issue was prominent at the Petroleum Industry Empowerment Summit of November 2000, to which the WOESA initiative is directly connected. Further impetus came from the adoption of a Black Economic Empowerment Charter (BEE) for the petroleum sector and government's broader acceleration of BEE over the past two years. Hence WOESA is aimed in particular at historically disadvantaged women.

The vision of WOESA is to be the leading organisation facilitating the participation of women in business ventures in the oil, gas and energy sector. In order to achieve this, WOESA seeks to create a platform for women to mobilise and network, receive training, identify and share business opportunities and establish a centralised point of contact where all stakeholders in the industry can interact for empowering women in the oil, gas and energy sectors. Established businesses can find women entrepreneur partners for joint ventures and empowerment initiatives in line with state policy. In addition, women interested in the sector can collectively exert the best impact for their limited resources by lobbying through WOESA to access appropriate energy resources and grow their participation in the energy sector in a meaningful manner. WOESA gives women in the energy sector a voice - especially important for the poor and the marginalised to whom this was denied in the past.

WOESA exists to empower women to understand the energy industry and to engage with the major role-players in the industry to improve the performance of women within it. This includes the setting of targets for gender-representation, lobbying government for participation in business opportunities and access to state assets and generally acting in the interests of WOESA members and the industry sector they are focused on. WOESA is creating a register of women in energy, provides networking opportunities and will facilitate access to funding. In addition, WOESA plays a broader educational role, sensitising the industry to women's participation and creating awareness among interested women of both the emerging opportunities as well as a greater understanding of the industry itself.

To achieve this WOESA is establishing funding requirements for a Women's Oil and Energy Fund. It is developing a marketing and empowerment programme and aims to provide deeper sector knowledge supported by greater expert capacity.

WOESA membership is developing at various levels, from associate and corporate membership to employee and SMME membership. In return, depending on their interests, WOESA members get access to the membership database, information network, access to skills and expertise and an avenue of access to investment and business opportunities in the sector.

In the process WOESA is building a strong women's lobby with greater access to funding, represented throughout the nine provinces via regional coordinators reporting to the WOESA Executive and a National Coordinator. There is also a WOESA Board of Directors, on which DME is represented. WOESA is still in its development phase, involved with fund raising and strategy development. It works alongside and in cooperation with the Technology for Women in Business (TWIB) project at both national and sectoral levels. WOESA is launching its own website; regional and national workshops are being conducted and the Vukani training project is well under way.

The WOESA initiative represents a significant advance in the drive for growth with equity, with a specific focus on the role of black women in the energy sector. WOESA facilitates maximum impact, is becoming a source of information for both women and established business in the sector, and is a reference point for government policy. For the first time, in the oil, petroleum and gas sector of South African economy, women are doing it for themselves - together!

Commissioning Editor: Wendy Dobson, Head: Strategy Unit
Editor: Dr Gavin Lewis

The opinions expressed by contributorsdo not necessarily reflect the views of the dti. Reproduction of articles in whole or in part is granted, except where copyright is especially reserved.

For further information, please contact:
the dti
Private Bag X84
Pretoria 0001
RSA

Tel: 0861 843 384
ISBN 0-621-30661-5

Sisebenza Sonke is the official dti policy journal produced in the interests of promoting an understanding of trade and industry issues in South Africa.

Contact details: National Office: 36 Klip Street, Observatory, 2198,
Johannesburg
E-mail: info@woesa.com
Website: www.woesa.com
National Coordinator: Ms Jacqueline Williams