South Africa Chemical Industries Association

Despite a backdrop challenges, demonstrates enduring

SPOTLIGHT ON SOUTH AFRICAN CHEMICALS

backdrop of considerable socioeconomic challenges, South Africa’s chemicals industry enduring resilience as it continues to grow

Having historically capitalised on its abundant indigenous mineral resources, South Africa is today considered the most developed economy on the African continent.

Contributing to this is a diversified and highly mature chemicals industry, which accounts for around 25 percent of manufacturing sales.

The chemicals industry was initially founded in the late 19th century to meet the needs of an expanding mining sector. Its ample coal supplies are vital to the petrochemical supply chain.

Despite relative seclusion from global markets pre-1990 due to an isolationist apartheid philosophy, the three decades since have seen the South African chemicals industry thrive and experience a steady upward growth trajectory

However, this success has not come without its challenges. Of late, load shedding, water supply issues, infrastructure constraints, and potential gas shortages have combined to present the South African investment climate as potentially a challenge. As such, the industry at large currently depends on chemical imports to sustain it.

Having said this, the country’s primary and secondary chemical sectors, dominated by influential South African companies such as Sasol, African Explosives and Chemical Industries (AECI), and Omnia Group, have recently expanded their interests in niche tertiary products, especially those with export potential.

It is hoped that an increased focus on manufacturing key chemicals and tertiary products locally will help reduce dependence on imports and improve the overall competitiveness of the sector.

In addition, emerging trends and opportunities in new chemical materials, hydrogen, shale gas, fluorspar beneficiation, and the manufacturing of titanium oxide pigments and fine chemicals all present exciting and realistic prospects for the continued growth of the South African chemicals industry.

These developments, alongside government initiatives such as the African Free Trade Area, introduced in 2021 to bolster employment opportunities and long-term economic growth on the continent, combine to facilitate a bright future for the South African chemicals industry.

CHEMICAL AND ALLIED INDUSTRIES’ ASSOCIATION INTERVIEW:

The Chemical and Allied Industries’ Association primarily seeks to boost productivity and competitiveness within the South African chemicals industry. As a multifaceted organisation, it is also concerned with the continued improvement of health, safety, and environmental considerations within the global chemicals market.

Deidre Penfold, Executive Director, tells us more

Africa Outlook (AO): Firstly, could you talk us through the origins and primary goals of the Chemical and Allied Industries’ Association?

Deidre Penfold, Executive Director (DP): The Chemical and Allied Industries’ Association (CAIA) was established in 1993, though its origins can be traced back to the Transvaal Manufacturers’ Association, which was formed over 60 years ago.

CAIA is a non-profit company in South Africa that represents the entire chemical value chain and has a longstanding history of delivering success. Its vision is to ensure the sound management of chemicals throughout their lifecycle.

It is committed to promoting the provision of sustainable, safe, and resource-efficient solutions that foster growth and safeguard future generations.

The organisation plays a prominent role in advocating the chemicals industry. It continuously engages in and makes submissions on legislation, policy, and regulations in the interests of the chemicals and related industries in South Africa.

In addition, CAIA actively participates in the global Responsible Care® initiative, which demonstrates its members’ commitment to excellence.

Responsible Care® is a recognised global voluntary programme that promotes the implementation of health, safety, security, and environment (HSSE) performance standards beyond the country’s existing legislation and policies.

This initiative aims to ensure that the chemicals industry is recognised by all stakeholders as responsible and beneficial to society, while remaining open, honest, accountable, and credible in all its dealings.

High-quality workshops, webinars, and seminars are offered, including various committees and fora that provide members with the opportunity to network and share information and best practices.

The association participates actively in regional and international meetings to raise industry awareness and contribute to regional and global discussions.

CAIA is a member of the International Council of Chemical Associations (ICCA) and their various leadership groups, the International Chamber of Commerce (ICC), the Organisation for the Prohibition of Chemical Weapons (OPCW), and is affiliated with the United Nations Environment Programme (UNEP).

Attendance of various conventions such as Basel, Stockholm, and Rotterdam, the Montreal Protocol, and an international legally binding instrument on plastics pollution, including in the marine environment, demonstrates CAIA’s global outreach.

In addition, its involvement in the International Conference of Chemicals Management (ICCM), now

renamed the Global Chemicals Framework, is critical for expressing the industry’s viewpoint and promoting due diligence involving relative subject matters.

AO: What is your current take on the chemical and allied industries in South Africa? Is it a particularly exciting or challenging environment to work in?

DP: The environment is very challenging, given that South Africa does not currently present itself as a businessfriendly destination.

The areas of concern relate to the unstable supply of electricity, potential gas shortages, water challenges, infrastructure constraints, and problems at the ports of entry. These issues result in the manufacturing sector not competing in the global market, with the majority of feedstock being imported by South African companies.

CAIA MEMBERSHIP TYPES

There are four different categories of CAIA membership, namely:

• Full members: Chemical companies that are signatories to Responsible Care® and manufacture, trade, distribute, and/or warehouse chemicals.

• Associate members: Companies that are signatories to the initiative, including hauliers, waste managers, and spill responders.

• Affiliate members: Organisations and individuals that are not signatories to Responsible Care®, including companies that store, handle, and/or transport chemicals, as well as academic institutions, media, consultants, vessel reconditioners, other associations, and those in R&D.

• SQAS-AFRICA user group members: Logistics service providers (LSPs) that are not members of CAIA and not signatories to Responsible Care®.

Commercial cross-border transport of bulk liquids

Firstly, please introduce us to Zimbulk Tankers with an overview of your main products and services, locations, and client base.

Zimbulk Tankers operates a fleet of specialised tankers designed for the transportation of various bulk liquids, including chemical and petroleum products. We offer a comprehensive logistics solution including route planning, scheduling, and cargo management services to ensure efficient and timely delivery of cargo to the customer’s destination. We operate across various regions, serving both domestic and over-border customers. We have set up depots strategically in RSA, Zimbabwe, and Zambia to provide local support, customer service and logistics coordination and giving us easy and quick access to load from the various SADC ports. We service the diverse needs of clients from the Chemical, Petroleum and Mining Industries both locally and across the SADC region including the DRC.

Could you outline Zimbulk Tankers’ core values and commitments?

Certainly! Zimbulk prides itself on its core values and commitments, which form the foundation of its operations and guide its business practices. Some of the Key values and commitments of Zimbulk are:

Safety: Zimbulk places the highest priority on the safety of its employees, contractors, the environment, and the communities in which it operates. The company adheres to stringent safety protocols and invests

in ongoing training and development to maintain a culture of safety excellence.

Reliability: Zimbulk Tankers is committed to delivering reliable and efficient transport solutions to its clients. Through meticulous planning, rigorous maintenance of its fleet, and adherence to schedules, the company ensures on-time delivery and consistency in service quality.

Quality service: We provide exceptional service to our clients, meeting their unique needs and exceeding their expectations. The company emphasises responsiveness, flexibility, and proactive communication to ensure a seamless and satisfying customer experience.

Integrity and Ethical Conduct: Zimbulk Tankers conducts its business with the utmost integrity and ethical standards. The company operates transparently, fosters trust and respect in all relationships, and upholds the principles of honesty, fairness, and accountability.

Employee Empowerment: Our employees are our most valuable assets and are committed to fostering a supportive and inclusive work environment. The company promotes employee growth, encourages collaboration, and recognises and rewards achievements.

Social Responsibility: Zimbulk Tankers actively engages with the communities in which it operates, contributing to social development initiatives and fostering positive relationships. The company strives to be a responsible corporate citizen, making meaningful contributions to the well-being of society.

What do Zimbulk Tankers’ safety and sustainability certifications demonstrate about the company’s safety status?

By complying with these internationally recognised standards, Zimbulk Tankers shows its dedication to delivering safe, reliable, and environmentally friendly services to its customers and stakeholders.

It also demonstrates the company’s commitment to maintaining the highest standards of safety, environmental responsibility, and operational excellence. These certifications also serve as tangible evidence of the company’s efforts to ensure the safety of its operations, protect the environment, and promote sustainable practices.

Zimbulk Tankers continually strives to ensure that every staff member acts responsibly and takes appropriate care in relation to the quality-of-service delivery, their own and others’ safety, health, security and protecting the environment, including any other person who may be affected by his/her actions at work.

Zimbulk Tankers was extremely honoured to have been awarded recently with the prestigious Chemical & Allied Industries’ Association (CAIA) 2023 Responsible Care® Logistics Service Provider of the year award.

CAIA’s Responsible Care® is the chemical industry’s own, unique, global initiative - a voluntary programme that helps it to raise its standards and win greater trust from the public.

The Responsible Care® initiative is essential in the reduction and elimination of risks and to the implementation of sustainable development. In terms of international trade and the standards demanded regarding safety, health and environmental practices, it is a strategy for survival and growth, and for maintaining a competitive advantage.

Finally, could you outline your key priorities, targets, goals etc. for the year ahead?

Safety First: Continuously prioritise and enhance safety measures across all operations, aiming for zero accidents or incidents. Implement regular safety drills, training programmes, and audits to maintain a culture of safety excellence.

Environmental Sustainability: Set targets for reducing carbon emissions, minimising environmental impact, and promoting eco-friendly practices.

Operational Efficiency: Streamline operational processes, optimise fleet performance, and reduce costs through efficient fuel consumption, route planning, and cargo handling. Set targets for improving operational efficiency metrics such as fleet turnaround time and fuel consumption.

Customer Satisfaction: Focus on exceeding customer expectations by providing exceptional service, timely communication, and tailored solutions to meet their specific needs.

Employee Development: Invest in employee training, development, and well-being to enhance skills, boost morale, and foster a culture of teamwork and innovation. Set goals for employee satisfaction, retention rates, and professional growth opportunities.

Financial Performance: Set financial targets for revenue growth, profitability, and cost control. Monitor key financial indicators such as operating margins, cash flow, and return on investment to ensure sustainable business growth and financial stability.

Community Engagement: Strengthen relationships with local communities, industry stakeholders, and regulatory authorities through proactive engagement, corporate social responsibility initiatives, and transparent communication. Set goals for contributing to community development projects, promoting maritime safety awareness, and fostering positive relationships with stakeholders.

By aligning with these priorities and setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) targets, we can chart a course for success and drive continuous improvement in our operations and performance.

Contact:

Tel: +27 11 578 2300

www.zimbulktankers.com

AO: Who is CAIA membership open to, and what are the key benefits of membership?

DP: CAIA represents companies throughout the chemical value chain. Members are small, medium, and large companies drawn from base chemicals, fertilisers, plastics in primary form, pesticides and other agricultural products, explosives, and speciality chemicals. These companies, which include multinationals, improve the health, safety, security, and productivity of products to enhance quality of life.

CAIA’s members form one of the most active networks of the business community in South Africa, complemented by partnerships with government and other industry associations that represent various sectors in the chemicals value chain.

Benefits of CAIA membership include opportunities to meet with the government through advocacy activities and events; support on occupational health and safety (OHS) and environmental guidelines; assistance in upskilling employees through CAIA training courses; representation at the South African Bureau of Standards (SABS); access to key business information and regulatory alerts; maximum legal compliance at minimum cost through seminars and workshops; and sharing industry best practices.

AO: How does CAIA seek to promote the sustainability of the chemicals industry in South Africa?

DP: CAIA members commit to the Responsible Care® initiative’s guiding principles and codes of management

RESPONSIBLE CARE®

Responsible Care® is both an ethical framework and a set of programme elements intended to drive excellence that has been implemented in over 60 countries globally.

CAIA became the custodian of the initiative in South Africa in 1994. Some of the benefits of successfully implementing Responsible Care® include:

• Improved operational efficiency and overall economic performance.

• Reduced emissions and process safety incidents, as well as other potentially tragic events.

• Improved safety for employees and communities.

• Increased credibility, liability protection, and government recognition.

• Protected public licences to operate.

• Continued provision of products by industry to address societal challenges and improve people’s lives.

• Perceived lower risks by investors when making buying or selling decisions.

• Improved corporate brand image and value.

• Enhanced lender confidence and access to lower interest rates.

• Reduced regulatory attention from authorities.

practice, covering all aspects of their businesses and product lifecycles, leading to safer and more sustainable products and processes.

Chemistry plays an essential role in driving progress across the three dimensions of sustainable development (environmental, social, and economic), whilst helping to address the world’s most pressing sustainability challenges.

Responsible Care® enables chemical and related industries to foster sustainable development practices, community relationships, and a culture of continuous improvement.

CAIA members have committed to transparency and improvement processes, in which companies are measured against key performance indicators (KPIs) such as emissions and waste output, water and electricity usage, transportation capabilities, and health and safety processes. The data provided by companies aligns with the UN’s Sustainable Development Goals (SDGs).

Established in 1999, Freightworx stands as a distinguished family enterprise with a robust presence across the African continent. Our extensive expertise, spanning a century of combined experience in the logistics industry, is dedicated to delivering exceptional service and peace of mind to our clients. Whether it involves warehousing, crating or the transportation of cargo via air, road, or sea, our commitment to excellence is unwavering.

With comprehensive insurance coverage offered per load, coupled with adherence to SQAS and CAIA international standards, we ensure the utmost safety and security of your valuable shipments.

With a global reach and representation in key markets, backed by our own fleet of vehicles and affiliation with IATA, we offer competitive rates for all import and export destinations.

Moreover, as a proudly 100% female-owned and operated enterprise, we are committed to fostering diversity and inclusivity while contributing as a compliant BBBEE participant.

Through its ICCA membership, the association is committed to promoting progress towards the UN’s SDGs. From basic needs such as clean water, to innovative technologies related to clean energy, process safety, and climate change, CAIA and its members are indeed at the forefront of sustainable development solutions.

AO: How extensively is CAIA involved in contributing, advising, and commenting on policy, legislation, and regulatory frameworks which may affect the chemicals industry?

DP: CAIA is a strong lobbyist in the advocacy space, influencing, shaping, and engaging in current and proposed legislation, policy, regulations, and standards that affect the entire chemical value chain.

It presents its submissions before the South African parliament, the highest national decision-making body.

AO: How do you see the chemical and allied industries developing in South Africa over the next five years?

DP: The manufacturing sector of the value chain is likely to shrink in South Africa if the economic conditions don’t improve and the country does not become more competitive globally.

However, there are niche industries setting up, allowing smaller businesses to grow within the sector.

With regards to the management of chemicals and the waste sector, growth is expected to continue in the next five years.

CAIA provides training on a variety of topics that are presented to companies and government departments as tailor-made to address their specific needs, thus expanding the industry’s overall footprint.

In addition, the Safety and Quality Assessment for Sustainability (SQAS) management system is a globally recognised assessment system that evaluates the HSSE, quality, and corporate social responsibility (CSR) aspects of LSPs to achieve supply chain excellence.

In 2017, CAIA launched SQAS-AFRICA, which is available across the continent. With this assessment system in place, chemical companies will be able to manage and improve the performance of LSPs entrusted to the company for the transportation of their products.

The development and implementation of sound chemical management systems within African countries is key to promoting the chemicals sector as a responsible industry that provides a wide range of benefits to all areas of the economy.

AO: Finally, what are CAIA’s key priorities to continue representing the chemical and allied industries in South Africa?

DP: To provide sound management of chemicals throughout their lifecycle, raise and promote the profile of the chemical supply chain and its vital role in society, and provide training and awareness in the form of events and practical interactions to showcase the chemical and related industries.

We will continue lobbying and advocating agreed-upon positions, policies, and legislation in the interests of the chemical supply chain to ensure that regulations, policies, and standards are realistic and implementable.

Our actions will fortify the safe management of chemicals and ensure that the government has the requisite capacity, skills, and tools to drive and monitor implementation.

We support our members to trade nationally, regionally, and globally in an economically viable and sustainable environment, whilst engaging in relevant national, regional, and international events.

CHEMICAL AND ALLIED INDUSTRIES’ ASSOCIATION

Tel:

+27 11 327 6547

caia@caia.co.za

www.caia.co.za

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