Plant Equipment and Hire October 2019 | Page 3

COMMENT It’s time to support the locals I Leon Louw [email protected] There are those who, despite the challenges, see opportunity, and pursue their vision”. www.equipmentandhire.co.za n a constrained economy it is of the utmost importance for a government to make it as easy as possible for locally based small and medium sized enterprises (SMEs) to operate. Sadly, the opposite is happening in South Africa. The country has not seen any significant SME growth, not in any of the economic sectors. Existing SMEs have to deal with exorbitant increases in input costs, while a labyrinth of rules and regulations, sky-high upfront capital costs, and a portcullis of bureaucracy, awaits those entrepreneurs eager to start a new business in the country. Yet, there are those who, despite the challenges, see opportunity, and pursue their vision. To start a new venture, whether it is a quarry, a farm, a contractor in the construction business or an equipment manufacturer in South Africa, you need hair on your teeth, an innovative means to finance your needs and, maybe, just a little luck. In this months’ issue of Plant Equipment and Hire, we feature two companies that have weathered the worst five years in South Africa since the late 80s, and although, by no means out of the woods, they have shown enormous resilience, and continue hammering away at the end goal. Rham Equipment has become a top manufacturer of underground equipment in South Africa, and despite competing with the likes of big multinational OEMs, is holding their own in a tough market – read their story on page 32. For some reason, large mining houses remain reluctant to procure locally manufactured equipment, especially underground equipment, but this is changing to a degree. Ironically, Gwede Mantashe’s Mining Charter 3 is lauded by local manufacturers, as it will provide them with, at least, some sort of head start against foreign owned OEMs. These companies have been operating in the inside lane for many years, as they are able to negotiate far better financing deals and pay-back packages than the financially constrained local manufacturers are able to do, so maybe it is time we start supporting South African companies more. But that is a discussion for another day. I visited a small quarry just outside Cullinan this month and what an eye- opener it was. Small-scale sand mining is not for the faint-hearted, not in South Africa anyway. Nevertheless, a shoestring budget, illegal mining, mafia-like intimidation, bureaucracy and corruption could not stop the team at AST (see page 12) in bringing their sand quarry into operation, and they continue mining with a fleet of used equipment that they revamped and diligently maintain in-house to keep the crushers crushing. Who says you need a big budget to build a fleet of decent equipment? Or that you need expensive, brand new yellow metal with all the bells and whistles to be successful? Hats off to both these companies. They create jobs for South Africans and continue doing so despite immense pressure in the face of adversity. We need more of these in South Africa, and we need to support them unconditionally. Leon Louw Editor OCTOBER 2019 1