African Business Coverage
ISSUE
12
Featuring Nissan South Africa, TransNamib Holdings, Imperial Logistics, De Beers Group... 1
BUILDING THE PLATFORM OF CUTTING EDGE MOBILITY
Bombardier Transportation, a global leader in rail technology, offers the broadest portfolio in the rail industry that covers the full spectrum of rail solutions from the manufacture of passenger rail vehicles, to the provision of complete rail transportation systems & system integration, signalling, propulsion & control technology, asset management and through life support with local engineering and manufacturing. Bombardier Transportation, a division of Bombardier Inc, has an installed base of over 100,000 vehicles worldwide and with over 60 systems in operation around the globe; Bombardier is highly proven to deliver turnkey transportation systems.
www.bombardier.com
African Business Coverage Issue 12
Bombardier Transportation is highly active & thrives in the areas of: đƫ Passenger Rolling Stock đƫ Railway Signalling Equipment & Installation đƫ Turnkey Transportation Systems đƫ Propulsion & Train Control đƫ Bogies đƫ Asset Management
Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Some of our current high profile projects in Australia include but are not limited to: đƫ Melbourne E Class Trams đƫ Adelaide A-City EMU Trains đƫ Adelaide DMU & EMU Fleet Maintenance đƫ Adelaide Light Rail Vehicle (Trams) đƫ VLocity DMU Trains đƫ V/Line Fleet Maintenance đƫ Queensland Next Generation Rollingstock (QNGR) đƫ Gold Coast Rapid Transit System đƫ Perth “B” Series Trains đƫ Perth A & B Series Fleet Maintenance
3
A SIDE OF US
YOU
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Packaging your progress from the inside out. For more information, please visit neopak.co.za or contact us on 010 636 (NEO) 0000.
African Business Coverage Issue 12
ediTOr’S nOTeS Welcome to Issue 12 of African Business Coverage. When it comes to the automotive industry, Ford has a long and distinguished history in Africa. We are pleased to feature an indepth interview with Nissan SA Managing Director, Mike Whitfield. Despite the industry undergoing a downturn, Whitfield tells us his plans to boost growth in the region and why the brand is staying loyal to Southern Africa. We also check in with Nando’s, the worldwide restaurant chain with an ever growing footprint. Born when two South Africans bought a single chicken restaurant in South Africa, its distinctive flavour is the secret to its success in the country and beyond. Talking of recognisable South African brands, they don’t come much bigger than De Beers Group. We get an inside look at the world’s leading diamond company. We also feature reports on TransNamib Holdings, Imperial Logistics, Safaricom and Stefanutti Stocks.
Enjoy the issue Robert Molenaar
African Business Coverage OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT PuBLISHer Oliver MOy okm@AuBuSINeSScoverAGe.com DeSIGNer SaM WOOd SAm.wooD@AuBuSINeSScoverAGe.com HeAD of reSeArcH abi abagun ABI@AuBuSINeSScoverAGe.com
Issue 12 Contents
8 News Company Reports 24 38 46 54 64 76 86 94
Nissan South Africa TransNamib Holdings Imperial Logistics De Beers Group Stefanutti Stocks Swaziland Johannesburg Water Nando’s Avis
104 Events
Industr African Business Coverage Issue 12
ry news 9
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FOrd TO CreaTe 1,200 neW JObS in SOuTH aFriCa Ford Motor Company is investing R2.5-billion ($170 million U.S. dollars) to expand operations in South Africa at its Silverton Assembly Plant in Pretoria, South Africa, to produce the all-new Ford Everest, along with the new Ford Ranger that was launched at the end of last year. This investment will create approximately 1,200 new jobs at Ford South Africa and within the South African supplier network. “Our customers love the capability and utility offered by the all-new Ford Everest,” said Jim Farley, Ford executive vice president and president of Europe, Middle East and Africa. “By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa. “The R2.5-billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa,” Farley added. “It further reinforces South Africa’s position as a strategic export base for Ford Motor Company.”
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The Silverton facility joins AutoAlliance Thailand in Rayong; Ford’s Chennai plant in India (where it is sold as the Endeavor) and the JMC Xiaolan Plant in Nanchang, China, as production hubs for the Everest. Initial production at Silverton of the Everest will commence in the third quarter of 2016, with the first units expected to come to market in the fourth quarter. South African-produced models will be sold locally and exported to markets across Sub-Saharan Africa. Part of this investment has been directed towards the production of the new Ranger, which is already running at maximum capacity at the Silverton Assembly Plant – with domestic sales and export demand at an all-time high. The Silverton Assembly Plant features state-of-the-art automation utilising Ford’s global manufacturing processes, and will be equipped to produce 10,000 Everests annually. “The all-new Everest has been extremely well received since it was launched in September last year, with demand far outstripping supply,” said
Jeff Nemeth, president and CEO of Ford Motor Company Sub-Saharan Africa Region.
TDCi four-cylinder diesel engine will be added to the range, along with a wider spread of specification levels.
“This crucial investment will enable us to increase volumes and expand the Everest range to eight derivatives across a broader price range. It will allow customers across Sub-Saharan Africa to choose from two powerful engines mated to robust six-speed automatic or manual transmissions for exceptional capability.”
Built at Ford’s Struandale Engine Plant in Port Elizabeth, the latestgeneration Duratorq TDCi diesel engines – which are also used in the new Ranger – offer maximum fuel economy along with exceptional performance.
Currently, the all-new Everest is imported from Thailand, using the locally produced 3.2-liter fivecylinder Duratorq TDCi engine. It is only available in South Africa in 3.2 Automatic guise in two specification levels – XLT and the range-topping Limited. With the commencement of local production, a 2.2-litre Duratorq
The all-new Ford Everest is a rugged seven-seat SUV featuring body-onframe construction, intelligent fourwheel drive and an Advanced Terrain Management System to help navigate challenging terrain with ease. In recent years, Africa has emerged as an increasingly important region for Ford, with continued investment and growth.
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TOyOTa inveSTS r6.1bn in SOuTH aFriCan PrOSPeCTiOn PlanT Japanese automaker Toyota, has announced that it has invested over R6,1 billion to facilitate production of the all-new Hilux and Fortuner at its Prospecton plant in Durban. This reaffirms Toyota South Africa Motors’ (TSAM) position as one of the largest automakers in South Africa, manufacturing no fewer than five individual models (Hilux, Fortuner, Corolla, Corolla Quest and Quantum) in CKD or complete-knock-down form, as well as selected Hino and Dyna models produced as SKD or semiknocked-down assemblies. “This latest announcement gives evidence of a company that is defiantly committed to South Africa by strategically investing in the people, tools and equipment to produce cars and commercial vehicles of worldclass standard that are not only destined for the domestic market, but will also fly our flag high on the international stage thanks to a robust
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export plan. “But it is in fact more than that – it’s also a celebration of the pivotal role that both Hilux and Fortuner play in the overall development of the South African motor industry,” TSAM President and CEO Andrew Kirby said at Toyota’s Prospecton Plant. Dr Johan van Zyl, Chairman of Toyota South Africa and Chief managing Officer of Toyota Motors Europe echoed Kirby’s sentiments, adding that, “the TSAM of today is vastly different to the same company only 10 years ago. This is all due to an ability to change with the times and I am glad to say that as we have changed, we have become better and more focussed to the benefit of our customers.” Van Zyl did however reiterate the importance of stability on the production line: “Although we are justifiably proud of
the achievements of the motor industry in growing production and especially exports post-1994, we must remember that South Africa currently produces less than 1% of the 90-million vehicles made worldwide each year. “We have to remain world competitive not only in terms of wages and productivity, but also regarding labour stability. I cannot stress enough the importance of engagement –
engage, engage and engage again – the need to employ dispute resolution as the first and ultimately only line of defence rather than resorting to strike action as the solution. “Nevertheless I am confident that a fair and equitable labour agreement can be reached and rest assured, that no matter what, Toyota will do its utmost to continue to put its customers and South Africa first.”
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MPaCT OPen STaTe OF THe arT reCyCling PlanT in Wadeville Minister of Environmental Affairs Ms. Edna Molewa has officially unveiled Mpact Polymers new recycle plant in Wadeville, Germiston. The new bottleto-bottle facility will produce recycled polyethylene terephthalate (rPET), which is the recycled raw material used for the manufacturing of new PET bottles from previously used PET bottles. rPET is a substitute for virgin PET, which is derived from crude oil. The R350-million state-of-theart operation’s recycling process complies with European Union (EU)
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Food Safety Authority specifications and is the first in Africa to meet The Coca-Cola Company’s full certification for PET bottles to package the company’s soft drinks. The operation enjoys the backing of the departments of Environmental Affairs (DEA), Trade and Industry (DTI) and Economic Development (EDD) in promoting job creation, reducing waste to landfill and improving rPET production that will ultimately help to reduce the carbon footprint of the food and beverage industry.
COCa-COla unveilS neW bOTTling FaCiliTy in MOZaMbiQue Coca-Cola Sabco has opened a new world-class bottling facility in Maputo, Mozambique. The plant will be capable of producing 50 million crates of CocaCola products every year, rising to 70 million crates eventually before peaking at 150 million crates a year. Built over three years at a cost of $130 million, it is the largest greenfield facility in Coca-Cola Sabco’s history across its seven-country regional market in Africa. Mozambique’s President Filipe Nyusi said Coca-Cola was one of the first global companies to invest in the country after independence.
Muhtar Kent, chairman and chief executive of the Coca-Cola Company, said the company had been investing in Africa for almost 90 years and was present in every African country with more than 70 000 employees across 145 bottling and canning facilities. “We have continued to increase investment in our business in Africa with $17 billion committed across our system for investments in distribution, infrastructure, manufacturing and marketing during this decade,” Kent said.
“Its investment in job creation and the growth of skills in Mozambique is testament to the company’s commitment to assisting us grow the economy of the country. We would like to congratulate Coca-Cola on the opening of this technologically advanced bottling plant,” Nyusi said at the inauguration of the plant.
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JSe TO OPen neW CaPe TOWn OFFiCe With Cape Town an increasingly important hub of South Africa’s financial services industry, the Johannesburg Stock Exchange (JSE) is opening a new office in the city to enhance its service to clients, build and strengthen relationships and provide accessible support to the market. “Cape Town is a major centre for global and local institutional investors as well as listed companies. Being the second largest economic hub
African Business Coverage Issue 12
of South Africa, and the head office base of many institutional clients and an increasing number of member firms and brokers, an office in the city is a logical part of the JSE’s client strategy,” says Capital Markets Director Donna Oosthuyse. In the new office, the JSE will be represented by Senior Capital Markets Specialist Maryke Vreulink. It will be used for all JSE-related activities and events held in Cape Town.
aggreKO TO SuPPly 200MW OF POWer in ZiMbabWe Aggreko has announced that its Power Solutions business has signed a 3 year contract to provide 200MW of dieselfuelled power in Zimbabwe. Aggreko’s customer is Sakunda Holdings Pty Ltd (Sakunda) which has been awarded a contract with the ultimate customer, Zimbabwe Electricity Supply Authority (ZESA). Sakunda is responsible for the provision of fuel under the terms of its contract with ZESA. As is normal, the contract becomes effective once certain conditions are satisfied.
Chris said:
Weston,
Chief
Executive,
“We are pleased with the award of this important contract. Our operational flexibility and our ability to deploy large amounts of equipment at short-notice, in particular our fuel efficient engines, was critical to this award. We look forward to supporting Sakunda and ultimately ZESA with their power needs over the coming years.”
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neSTle inJeCTS r1.2bn inTO SOuTH aFriCa’S eCOnOMy Nestlé South Africa officially inaugurated its instant coffee manufacturing plant in Estcourt factory after a R1.2 billion investment into the expansion of the factory. The inauguration ceremony, a remarkable milestone in the company’s 100 year history in the country, was attended by His Majesty, King Goodwill Zwelithini and the Premier of KwaZulu Natal, Senzo Mchunu.
The R1.2 billion investment into the expansion of the factory forms part of the company’s R2.9 billion foreign direct investment in the last five years. The expansion included the construction of a waste water treatment plant, new coffee processing plant, upgrading existing coffee processing and state of the art coffee drying plant. Since construction commenced, at least 20 direct and more than 470 indirect jobs were created. “Investments of this magnitude demonstrate the Nestlé Group’s commitment to long-term business sustainability and economic development in Africa. Through this investment, we will increase capacity for our coffee factory and meet the growing consumer demand for coffee in the region. This is also aligned with our ambition of being the world’s leading Nutrition, Health and Wellness Company while offering our consumers quality, nutritious and affordable
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products.” said Ravi Pillay, Corporate Affairs Director for Nestlé South Africa. 2016 marks Nestlé’s 100 years of operations in South Africa and the Estcourt factory is one of the first three factories that the company acquired when it established its presence in South Africa in 1916. Pillay added, “We believe that for a company to be successful in the long-term it has to create value for shareholders and communities where it operates.” In 2015 the company launched a chicory farming initiative in Kwa-Zulu Natal and Eastern Cape Provinces
in partnership with the Department of Trade and Industry (Dti) and the Department of Agriculture (DoA). “Chicory is a key ingredient in our instant coffee mixtures - Ricoffy and Ricoffy Mild. Through our partnership with the Dti and DoA, identified farmers will supply us with chicory and we will ensure a stable supply of income for them, thus creating shared value,” concluded Pillay. Nestlé South Africa has eight manufacturing facilities, four distribution centres and 3500 full time permanent employees across the country.
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vOdaFOne eXTendS ParTner agreeMenT WiTH aFriMaX TO ZaMbia Vodafone and Afrimax Group - a 4G telecommunications operator in subSaharan Africa have jointly announced a new Partner Market agreement for Zambia. Under the non-equity agreement, the two companies will offer customers high speed 4G data services using the ‘Vodafone Zambia’ brand, with market-leading customer services and delivered over a high quality network. The roll out of Vodafone Zambia for consumers and businesses will include the opening of Vodafone branded retail stores and kiosks in key locations, bolstered by a network of distributors and resellers and offering a full range of 4G handsets and devices. Vodafone Zambia will offer businesses of all sizes a range of connectivity products at retail and through direct sales channels, including 4G and Wi-Fi mobile data services, fixed internet and a suite of office solutions. Vodafone Partner Markets Chief Executive Stefano Gastaut said: “We are delighted that Zambia will be African Business Coverage Issue 12
joining the Vodafone Partner Market community as the next stage in our agreement with Afrimax for subSaharan Africa. We look forward to bringing the best high-speed 4G data services to consumers and businesses in Zambia.” Lars Stork has been appointed by Afrimax as Chief Executive Officer of Vodafone Zambia, which will be headquartered in Lusaka. Afrimax Group Management Peter Langkilde, CEO and Rob Philpott, CFO commented: “Launching Vodafone Zambia is an exciting development for Afrimax and another big step towards our ambition of building the leading LTE focused operator in sub-Saharan Africa.” The launch in Zambia builds further on the framework agreement between Vodafone and Afrimax, announced in November 2014, to co-operate and explore potential Partner Market opportunities in a variety of territories in sub-Saharan Africa. As part of the agreement, Vodafone and Afrimax have already partnered to launch 4G services in Uganda.
eTHiOPian airlineS SignS MOu WiTH aerOSud grOuP TO eSTabliSH aerOSPaCe ManuFaCTuring induSTry in eTHiOPia Africa’s fastest growing airline Ethiopian airlines has signed a memorandum of understanding (MoU) with Aerosud Holdings, a prominent South African Aerospace Manufacturing company, at a ceremony held at Ethiopian Headquarters on July 15, 2016. The MoU is aimed at establishing a joint venture Aerospace Manufacturing company that manufactures and supplies various aircraft parts to Boeing, Airbus and other Aerospace companies. Mr. Tewolde GebreMariam, Group CEO Ethiopian Airlines, remarked, pursuant to our government’s industrialisation policy embedded in the five years Growth and Transformation Plan (GTPII), we have reached into an agreement with Aerosud Group to establish and develop labor-intensive Aerospace manufacturing Industry. It is my sincere belief that, the establishment of these facilities will surely create significant job opportunities for the young, educated task force and be another face of the industrial park
development task that is being carried out in the Country. The manufacturing facilities, that will be set up in due course, are expected to be located in the vicinity of Bole International airport for good reasons of economy of scale and ease of import/export transportations. At last, I would like to thank all who worked hard towards the conclusion of this agreement.” Mr. Johan Steyn, Managing director of Aerosud Group commented “we are happy to establish this joint venture with Ethiopian airlines and we would like to share Aerosud’s long years of experience working with major Aircraft Manufactures such as Boeing and Airbus and help Ethiopian in the development of the aerospace manufacturing industry in the Country” In a feasibility study to determine potential areas of manufacturing, Ethiopian has held rigorous discussions with Aircraft manufacturing companies such as Boeing, Bombardier and other aerospace manufacturing companies.
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WOOdSide TO buy COnOCOPHilliPS Oil aSSeTS in Senegal Woodside has entered into a binding Purchase and Sale Agreement (PSA) with ConocoPhillips to acquire all of ConocoPhillips’ interests in Senegal for the purchase price of US$350 million, based on an effective date of 1 January 2016, plus a completion adjustment of approximately US$80 million. Under the PSA, Woodside will acquire 100% of the shares in ConocoPhillips Senegal B.V. which holds a 35% working interest in a Production Sharing Contract with the Government of Senegal covering three offshore exploration blocks, Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore. The acquisition includes the option for Woodside to operate the future development of any resource.
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The Production Sharing Contract includes the SNE and FAN deep water oil discoveries. SNE is one of the largest global deep water oil discoveries since 2014. Woodside estimates that the SNE discovery contains 560 MMbbl of recoverable oil (at the 2C confidence level, 100%). Woodside CEO Peter Coleman said the acquisition aligned with the company’s growth strategy by providing a significant position in an under explored and highly prospective emerging oil province. The SNE and FAN discoveries opened up the basin, and recently completed appraisal work has proven up highquality resources. “We are taking advantage of our balance sheet to acquire a worldclass asset that fits well with our capabilities, offers significant future
upside in exploration and line-ofsight to near term oil production. “It builds on our agreement to acquire a 65% interest in the AGC Profond exploration block located to the south in the Senegal-Guinea Bissau joint development zone and extends our regional focus in West Africa. “We look forward to working with the Government of Senegal and
joint venture participants Cairn Energy, FAR Limited, and Petrosen, the Senegal National Oil Company, to progress the commercial development of SNE and any future discoveries. “Woodside will bring to the joint venture expertise in deep water drilling, development and operation of subsea infrastructure and floating production storage and offloading vessels,” he said.
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niSSan SOuT
Investing in Africa to achieve long-term
TH aFriCa
m growth
N
issan has been committed to South Africa for more than half a century, not just selling its world renown vehicles in the country but functioning as a hub for 42 other countries in Sub Saharan Africa, including Angola, Ghana, Kenya and Nigeria. Offering a range of locally produced and imported vehicles in these markets, it is responsible for a workforce of close to 2,500 people, with many of those working in manufacturing.
A COMMITMENT TO AFRICA Despite the automotive industry in sub-saharan Africa going through a tough period, Nissan has been able to stabilise its growth and still pump money into expanding operations. Nissan has faced these challenges head on, and has worked hard to make sure it serves Africa the best way it can. Each country’s industry is different, and that’s a crucial point to consider according to South Africa’s Managing Director Mike Whitfield.
“Wherever we go in Africa,, we need to partner with a local partner. The importance of focus on the market that you’re in and knowledge of that market is critical,” he says. “So our strategy will always be to work with local partners and the markets in Africa. We will expand our presence by creating a regional office both in East Africa and in West Africa. “We believe local knowledge, local people can play a much more value added role than trying to operate from down South in Africa or North in Dubai, and it is really showing the commitment that we do have, and the belief that we have in the potential of Africa and growing our resource base there over time. “We still see Africa as a key part of our future strategy, very much part of our focus and a great area for growth opportunities. Obviously from an Africa perspective we don’t look at it in short term, we look at it very much in the medium to long term, to really realise the true potential.” MANUFACTURING AND SERVICE Africa may be suffering a downward trend in terms of growth, but Nissan are in it for the long haul. Its Rossyln factory, based near Pretoria, has been operating since the early 1950s. “In the long term we are very much looking forward to invest, to utilise the capacity that we have in our South African plant, and particularly making the South African plant our mother plant for other activities within Africa,” remarks Whitfield. “We are going to focus on this year is to prepare the plant and the skill level in the plant for future opportunities that no doubt will come up. We’re working very hard in preparing
the plant and the business to utilise the capacity that we do have available, and we are focussing on the new Navara, which has already been launched in Thailand, and we hope to be in a position that we can make a final decision and announcement during the course of this year. As we look at it at the moment, everything is very much on track.� A DISTINGUISHED BRAND In such a competitive industry, especially in South Africa where consumers are spending less on cars, it is essential that the Nissan brand stands out above the rest and offers vehicles across the whole spectrum from budget to high end. Nissan does that. Starting at entry level with an affordable Datsun, the Micra, all the way through an extensive crossover range, with the Qashqai and X-Trail ranges and the
Nissan SA Managing Director, Mike Whitfield.
luxurious Infinity brand. It allows customers to remain loyal to Nissan as their needs and desires change. “The journey through the Nissan family can start with Datsun and ultimately end with Infinity,. It gives people a wide range of growth within the brand, within the family, but very importantly, that we do need to offer the top levels of excitement, quality and without doubt peace of mind motoring on an ongoing basis,” says Whitfield. “What is very important for us is that our customers have a positive view of the brand and of the company, and we’d like to bring them back. One of the big opportunities we also have in Africa is there’s a massive emerging new customer that we need to bring into the brand and keep with us.” The Nissan brand has become synonymous with innovation and excitement, and the company strives to achieve a co-ordinated approach when it comes to worldwide synergy. Whitfield explains: “We need to be consistent in what we do with the brand, not only in the above the line advertising you will see, but many of our activities are recently announced involvement in ICC cricket, in the UEFA Cup, are all part of building that brand value of innovation and excitement.” THE NISSAN WAY Now MD, Whitfield is a great example of somebody who has worked up the ladder at Nissan. “I’ve grown up with the company. In fact it’s the only employer I’ve ever had,” he recalls. “After University I joined Nissan as a trainee. I had the unique opportunity of working in just about every area of the operation. During my course of my time in Nissan I’ve been in
the truck business when we still owned UD Trucks, or Nissan Diesel as it was known in those days. “I had a fortunate opportunity of developing and opening up our Nissan operations in Northern Europe and, in fact, I spent four years living in Finland and developing Nissan’s businesses in Denmark, Norway, Sweden, Finland and the Baltic states. “I then came back to South Africa about five years ago and have been focussing on developing and growing our presence, not only in South Africa but particularly in Africa. So I’m a Nissan person, that’s the only job I know, it’s the only place I’ve been, and certainly it’s a great company to be part of and a great brand to be associated with.” With such strong ties to the company, Whitfield has a wealth in experience of leading teams and understands more than most the Nissan way of operating effectively. “The biggest aspect is being able to balance your strategic outlook with the operational elements of it, and particularly the biggest challenge that one will find in today’s environment is that it’s very fast moving. We have an economy, particularly in Africa, that can change very rapidly, and the ability is to bring and manage that change as we go through it, and bring the whole team along it. “So I think one of the biggest challenges is operating in an unpredictable environment, which Africa can be with tremendous up and down movements, and making sure we can keep our team with us and everyone focused on delivering the best results possible for all stakeholders.” With Whitfield leading the charge, Nissan looks set to drive forward its strong growth strategy in the continent.
Tra
anSnaMib Transportation that helps form the backbone of Namibia’s economy
R
egardless of the country you reside, being able to transport goods from one destination to another is crucial for individuals and businesses alike. Whilst we sometimes take for granted the availability of milk or vegetables in our local store or fuel at our local petrol station, it’s important to remember the journey and logistics involved beforehand. For Namibian companies in leading sectors, TransNamib has the solution. TransNamib Holdings takes pride in being regarded as one of the most reliable and affordable logistic and warehousing service providers in the country. With years of experience, TransNamib aims to provide customers with convenience, reliability and affordability through its premium logistic services. Bulk freight Servicing most major economic sectors in Namibia, TransNamib facilitates the flow of goods across both rail and road. Its core business lies in bulk freight logistics solutions and covers industries such as agriculture, construction, bulk fuel and mining. As the national transport and service provider, TransNamib acts as the backbone of Namibia’s economy and beyond. With agriculture taking the title as one of the largest forms of employment in Namibia, TransNamib play a significant part in the transportation of commodities such as milk, sugar, maize, wheat, fertiliser and others. Aiding the movement of such goods enables Namibia’s agricultural sector to thrive. In addition to supporting the agricultural sector, TransNamib works closely with the mining industry and
provides tailor made rail and road transport solutions to most of the mines in Namibia. The Namibian economy is largely based on the extraction and export of its minerals and is able to take advantage of a land that is rich in Uranium, Copper and Coal, amongst others. Supporting the mining industry is the abundance of building materials that are required and as a consequence the construction sector is considered another one of the leading sectors in the Namibian economy. Serving both private and public customers, the building industry is driven by the development of new mines and housing projects. Providing transport for materials such as cement, steel, bricks and sand, TransNamib is able to provide efficient and economical transport solutions to its
Namibia Rail Construction is a joint venture between TransNamib Holdings Ltd and D&M Rail Construction ( Pty) Ltd
Phone: +264 61 402 371 Email: info@namrail.com
www.namrail.com
customers through utilising road and rail services. Finally, TransNamib is able to assist the growing Namibian oil industry through its proficiency in transporting liquids. Whilst oil and gas exploration is in its early stages in Namibia, there are 17 wells drilled to date. TransNamib is now the major transporter of bulk fluids such as fuel, jet fuel, petroleum gas and oil. With specialised tank wagons for transporting fuel, TransNamib is able to deliver bulk liquids to the depots of all commercial retails such as Total, Vivo, Shell, Engine and Namcor in Namibia. Offering a convenient door to door service between rail and road transportation, TransNamib has become the logistical backbone of a wide range of industries in Namibia. As a result, the company is considered as a crucial organisation and plays a huge part in the growth of Namibia’s economy.
Passenger services Whilst rail services are predominantly freight-orientated, TransNamibia’s passenger service focuses on the needs of customers travelling on long distance journeys. A range of amenities have been created in recent years that have been developed specifically for the leisure and tourism markets. Starline Passenger Service is an affordable, safe and daily train service for passengers between Windhoek and all major towns that are connected to the rail system. With customers able to enjoy aircraft-style seats reclining seats, air-conditioning, vending machines and entertainment systems, passengers can chose between travelling business or economy class. Desert Express is a unique rail experience that offers a luxury excursion that offers customers a
distinctive and impressive glimpse of the Namibian landscape. Current offers include overnight weekend trips as well as 7-10 day trips and customers can even organise private charters. This extraordinary train provides passengers with on-board accommodation and elegant dining. Omugulu Gwomashe Star is a fast speed luxurious passenger train and the first of its type. Boasting a Diesel Multiple Unit, it is available for local passenger transport as well as private charters. Celebrating its comfort and style, it has on-board entertainment, all season climate control, bar facilities, leather seats and soft suspension for a comfortable journey.
Teltech cc
Thompson’s Electronics & Technology
Phone +264 61 237 533, +264 61 237 534 Fax +264 61 237 536 Email info@teltech.com.na
On the right track Since the independence of Namibia, TransNamib holdings have had control of the national rail network. Having experienced fantastic growth, the railway network now stretches through Namibia with a length of 2,687 km. Whilst this continues to grow, TransNamib’s ability to dominate the market and provide transport solutions across a wide range of industries grows too. TransNamib recognises that transporting freight is a task that requires experience and expertise but also the resources to do so. Through its logistical experience and distribution network, it is able to save companies the time and hassle of buying, maintaining and staffing their own fleet of trucks which can prove to be an expensive burden on many organisations. Through offering a safe and secure method of transporting goods across a range of sectors, TransNamib enables its customers to focus on other business concerns. In turn, its clients can concentrate on its own daily operations to expand and deliver. Benefitting from its ability to support a wide range of industries that are fundamental to the Namibian economy, TransNamib is able to use its experience to anticipate customer needs and its economies of scale to offer an effective logistic solution that is cost effective. While also able to offer a growing number of passenger services, TransNamib shows no signs of slowing down. Acting Chief Executive Officer, Mr Hippy Tjivikua is the man in the driving seat and holds an MSc in Operations Management & Leadership from Worcester Polytechnic Institute in the USA among a range of other qualifications.
iMPerial lO
Delivering tailor-made integrated sup across a multitude of sectors
OgiSTiCS
pply solutions
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ounded over 35 years ago, Imperial Logistics began providing transportation services with just a fleet of trucks. Today, with 5,500 vehicles and its unique end-to-end solution proposition, offering outsourced value chain management, Imperial Logistics is able to provide its clients a competitive edge. Customers benefit from the complete package with Imperial as it handles everything from procurement to brand activation and all logistics services between. An Integrated supply solution One of Imperial’s biggest strengths is combining its role as the largest transportation company in southern Africa, which has remained at the heart of the business since inception, while also offering a truly integrated supply solution. Managing each step of the process means Imperial is able to offer a unique service, distinguishing the organisation from many of its competitors. This process has been simplified by Imperial as the ‘Get me there, sell my product, build my brand’ approach. Imperial takes materials from its original source right through to the endconsumer point of sale, earning Imperial a leading position in
the market. As a distributor of FMCG, Pharmaceuticals, liquor, tobacco and general merchandise products the company offers demand driven route-to-market solutions. Global consumer healthcare group GlaxoSmithKline (GSK) is just one of the market-leading organisations which use Imperial Logistics, awarding it a three-year contract for sales, merchandising and brand consulting services in 2015. This is testament to Imperial’s effectiveness in handling complex client needs, offering solutions for each and every logistical step from manufacturing to merchandising support. Fleet and services Imperial’s dedicated fleet comprises of a complete range of vehicles allowing the company to transport all types of goods. With the flexibility to offer customised road transportation options, Imperial Logistics’ experience, expertise and resources go above and beyond the basic A to B of its client’s cargo. From refrigerated transport to hazardous products, goods can be transported across 14 African countries, as well as internationally in Europe. Imperial has an extensive transportation offering; including air and ocean, rail and road, direct express and customs
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clearing forwarding. Environmental sustainability has always been a consideration, which is why Imperial uses innovations such as ecoFridge, which utilises a nitrogen system to eliminate carbon emissions. Its fleet management systems and satellite navigation provide live real-time information and visibility, offering both reassurance and continuous updates on the status of clients’ shipments. Through its range of managed logistics packages, Imperial is able to plan, implement and control all movements from the point of origin to the point of consumption. Imperial Logistics’ flexible strategy follows each step of the supply chain for a range of customers and sectors. This includes client specific warehouse solutions through its management of a customised storage space process. In order to improve efficiency and achieve cost savings for its clients, its consolidated offering puts the client’s needs first. Through its dedicated, shared and bonded warehouses, Imperial manages all necessary customs regulations whilst in storage allowing its clients to concentrate on its business operations. Supporting its source
to store strategy, goods may be repacked and consolidated ready for delivery to stores, whilst in storage.
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Modern logistics Imperial has had to move with the times over the past four decades, and recognises that modern logistics involves much more than transportation and completes its end-to-end offering with sales and marketing support. Taking advantage of its unequalled experience in the African market, Imperial claims to be the only company to take its clients’ products from manufacturing to point of purchase
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whilst building brands in the process. Imperial customises sales and merchandising according to its customer’s specific requirements, achieving client satisfaction and optimum sales results through focusing on a mix of trade and shopper communications, brand activation strategies, advertising and trade promotions. Having demonstrated it can streamline, shape and sell its complete package solutions; Imperial is set to replicate its offer across a number of industries and client bases. Endorsed excellence Imperial’s continued level of performance in the industry has seen the company awarded nine prestigious awards at the 27th annual Logistics Achiever Awards in 2015. Of those nine accolades, Imperial were awarded a coveted Platinum Award, two Gold Awards and four Silver Awards, as well as two ‘Enviro Awards’ for its contribution towards achieving eco-friendly Southern African supply chains. Recognising the Imperial Group’s achievements for supply chain and logistics excellence, these awards pay testimony to the diverse experience, expansive capabilities and customised nature of Imperial Logistics’ value chain management solutions.
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beerS grOuP The diamond producers that continue to sparkle
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here are few organisations that can claim to have altered consumer behaviour by advancing a tradition that continues to grow today, but the De Beers Group deservedly can. Marking one of life’s biggest occasions, De Beers is credited with influencing the rise in demand for diamond engagement rings. The company has a proven track record in marketing too, after hiring the ad agency in 1947 that coined the timeless slogan ‘A diamond is forever’. Established in 1888, De Beers Group has 128 years of history, experience and involvement in the diamond industry. From exploration and mining to sorting and selling the final product, De Beers is one of the most important organisations in one of the most lucrative sectors.
Established in 1989 Inspection and Quality Services provides Project Quality Management, Engineering Inspection, NDT & Training on a global basis to engineering, mining, manufacturing, oil, gas and petrochemical industries. IQS International is proud to be the appointed Project Quality Management service provider for the Venetia Underground Project and for the De Beers Marine offshore mining fleet.
For further details visit www.quality.co.za or contact Alan Stothard +27 72 659 1776
World leaders Taking the title as one of the best known diamond companies on Earth, De Beers takes its position and responsibility seriously. Employing over 20,000 people, De Beers aims to have a positive impact on both the economy and community impacted by its activities and employs local workers where possible. Answerable to two shareholders, Anglo American and the Government of the Republic of Botswana, De Beers prides itself on safely and sustainably making the most out of every carat it mines and sells. The company is involved in almost every stage of the diamond pipeline and remains focused on its vision and values of pursuing brilliance. With mining taking place in Botswana, Canada, Namibia and South Africa, De Beers make diamonds available to buyers across the globe. ‘Super-pit’ status The company continues to invest in the future with a number of multi-million dollar projects. It aims to boost diamond production whilst also benefiting the communities in the areas in which it operates. In Botswana, De Beers is expecting to generate more than 1,000 jobs and contribute US$31 billion by extending the life of Jwaneng Mine, which opened in 1982 to at least 2035. In 2018, Cut-8 will become the main source of ore for Botswana’s Jwaneng Mine, one of the world’s richest diamond mines by value. It is named Cut-8 because it’s the eighth expansion of the mine. Part of the joint venture between De Beers and the Government of the Republic of Botswana, the project is anticipated to deliver access to 93 million carats of mostly high-quality diamonds. The development will enhance Jwaneng Mine to one of the largest open pit mines in the world. When it reaches operational phase, the project will support more than 4,500 jobs per year.
WE MOVE DIAMONDS, BULLION AND HEAVEN & EARTH FOR OUR CLIENTS From overnight secured delivery of precious cargo to comprehensive 3rd party logistic services, Malca-Amit’s commitment to an unsurpassed level of excellence in customer service, delivers absolute peace of mind while your precious cargo is in transit. With offices and agents in 31 countries, along with a comprehensive international network of partners and affiliates, Malca-Amit constantly and consistently exceeds expectations. For more information visit www.malcaamit.com Malca-Amit Botswana Tel: +267 3188393 Mobile: +267 71328666 Email: Brett.nortje@malca-amit.co.bw / Sharon.nortje@malca-amit.co.bw
DELIVERING Absolute PEAce of mind
Established in London during the great South African diamond rush of the 1870’s, Bonas is the oldest and most established Diamond Broking and Consulting firm in the world and operates in : where we support our clients’ relationships with the sales & marketing arms of the De Beers Group of Companies; using our experience and exceptional market knowledge to deliver value on a wide array of industry related projects to clients, including diamantaires, retailers, brands, governments and bankers; leveraging our modern infrastructure, in-house systems, processes and enormous placing power to provide an easy route to market and incomparable visibility to both buyers and sellers of rough & polished.
ANTWERP I DUBAI I GABORONE I HONG KONG I JOHANNESBURG I LONDON I MUMBAI I NEW YORK I SURAT I TEL AVIV
Going Underground – Venetia Mine Opened in 1992, Venetia Mine is South Africa’s largest diamond producing mine and is one of De Beers’ ongoing growth projects. As it approached the depth limit of openpit operations, De Beers decided to build the Venetia underground mine beneath the open pit that had proved so successful. Excavation work to extend the mine underground is costing US$2 billion, making Venetia Mine the biggest single investment in South Africa’s diamond industry in decades. Whilst production is scheduled to begin in 2022, the extension has already seen 1,500 jobs created for local people and 500 additional jobs are expected to be added when major underground work begins. This new stage of development began in 2013, coinciding with De Beers’ 125th anniversary. The project is planned to climb to full production in 2025, by which time it will treat approximately 132 million tonnes of ore. The tunnel involves driving two vertical shafts, each seven
metres in diameter to a depth of 1,080 metres. This tunnel decline that will provide access to the underground mine is an operation that will take until 2018. The underground mine is expected to unearth an estimated 94 million carats and extend the country’s largest producer of diamonds’ life expectancy to 2046. In line with De Beers’ ethos of ensuring its projects benefit the local community, houses are being built in nearby Musina to accommodate workers and support will be given to improve local roads as part of the project. A diamond is forever Consistent with its well-known marketing tag line, De Beers is committed to ensuring sustainability is at the heart of its business strategy. It recognises the importance of its responsibilities to ensure it protects both its stakeholders and licence to operate. De Beers aims to create a lasting positive legacy, through its own operations as well as partnership activities with others. As well as domestically, De Beers is dedicated to protecting its industry further afield by ensuring its products do not fund wars or finance violence. In 2003, the Kimberley Process Certification Scheme (KPCS) was launched to stop the trade of ‘conflict diamonds’. All of De Beers’ diamonds are certified as conflict free which enables the company to provide consumers with peace of mind. Through sharing the aspirations of its producer partner countries, De Beers believes its business is a catalyst for delivering socio-economic benefits and is able to drive enduring changes across both the industry and communities in which it operates.
The man behind the mines Philippe Mellier has been the Chief Executive of De Beers since May 2011 and was appointed to the De Beers SA Board simultaneously. Prior to De Beers, Mellier was the Executive Vice-President of the Alstom Group following a long career in various senior management positions at Ford Motor Company, Renault and Volvo Group. Born in France, Mellier graduated with a degree in mechanical engineering in 1979.
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STeFanuTTi STOCKS Delivering complete construction and contracting solutions
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tefanutti Stocks is a name synonymous with construction in Southern Africa. One of the industry leaders, it is able to deliver projects of any scale to a multitude of clients in diverse markets. With 12,000 employees, Stefanutti Stocks is a Level Three B-BBEE contributor that carries a Grade 9 rating from the South African Construction Industry Development Board (CIDB) for unlimited tender capability. AFRICA AND BEYOND Stefanutti Stocks operates across all provinces of South Africa. In sub-Saharan Africa the group has established a presence in Angola, Botswana, Ghana, Mozambique, Namibia, Nigeria, Sierra Leone, Swaziland, Tanzania, Zambia and Zimbabwe. Outside of Africa, the group has businesses in Dubai, AbuDhabi and Qatar. There are various business units across its geographical areas of operation. These business units include divisions in South Africa and operating companies in sub-Saharan Africa. In the Middle East region the group’s associates in the UAE comprise of Al Tayer Stocks, an interior fit-out and refurbishment business; and electro-mechanical contractor Zener Steward LLC. In Qatar the Rabban Stefanutti Stocks partnership is involved in general construction.
It is important to comprehend just what Stefanutti has the capability for over such a wide spectrum of projects. It proves itself as a multidisciplinary construction group, with capabilities spanning a broad range of industries including: • Building construction and mass housing • Environmental • Heavy industry • Marine • Mining services & mining infrastructure • Oil & Gas and Petrochemical • Power • Telecommunications • Transport nodes, roads & infrastructure; and • Large dams, water transfer schemes & waste water.
DIVERSITY Stefanutti Stocks knows that the key to success in the construction industry is diversity, which is why it has worked hard to strategically position itself with a portfolio of both conventional and niche skills. Being able to seamlessly mobilise across the group (and into the rest of Africa) is an asset integral to the group’s multidisciplinary nature. The business units in which African operations are divided into are Roads, Pipelines and Mining Services (RPM) Structures, Building, Corporate Services and Mechanical and Electrical. These are based on localised operations which are firmly established and backed by premier brands, financial strength and common values. The group also has specialist construction capabilities which include marine, geotechnical and piling, slipforming, incremental bridge launching, electrical & instrumentation, mechanical, oil & gas, tailings disposal dams and bulk pipeline construction One of the group’s mottos is ‘If you can dream it, we can construct it.’ This summarises Stefanutti’s approach to their client’s wants and needs, from specialist construction to simple projects, the organisation will deliver across the scale.
SWAZILAND OPERATIONS Stefanutti has grown to become one of the biggest contractors in Swaziland undertaking building, civil and roads & earthworks contracts. The successful completion of a broad range of projects includes the Sikhupe International airport, LUSIP main canal and the Public Service Pension Fund office park in Mbabane. Based in Matsapha, the Swaziland unit has built up a strong reputation to become a preferred construction partner in Swaziland and bordering countries since the late 1980s. MAYDON WHARF Stefanutti Stocks entered into a joint venture with Axsys Infrastructure to become the main contractor for a major upgrade on the Port of Durban in April 2014. The R1.6 billion project forms an integral part of Transnet’s Market Demand Strategy which aims to improve the port system to promote economic growth. The project involves the reconstruction and deepening of six of the 15 berths in this precinct, with the Maydon Wharf entrance channel needing to be deepened to enable larger vessels to enter the port. Transnet Capital Projects (TCP) – which is overseeing the project, recently achieved a safety milestone of 1,000,000 Man Hours without a Lost Time Injury (LTI) on the project. Shane Perumal, Project Manager, said: “There has been a huge safety commitment from the Project Managers, the main contractor Stefanutti Stocks AXSYS Joint Venture, and subcontractors, to provide continual training, preventative programmes, communication of safe work practices, sharing of lessons learned from observations and incidents and
The key to a successful business lies in good collaboration, communication and relationships that assist customers derive value from their investments.
www.cornastone.co.za info@cornastone.co.za
good site safety vigilance. This ensures that everyone – from labourers to senior management- works safely every day.” STAFF AND THE ENVIRONMENT Stefanutti Stocks’ divisions are all accredited and audited by industry bodies in line with industry standards and requirements. The group doesn’t stop there, its intensive development and training programmes for staff means employees are continually raising their performance. “We have established a culture of investing in people, which provides the framework for personal growth and development of our employees, our colleagues and our peers. At the same time, our people are given the tools to take responsibility and ownership,” says Stefanutti. A safe working environment is crucial to enhancing the wellbeing of employees, and Stefanutti is committed to providing this. Testament to his is the Group Lost Time Injury Free Rate (LTIFR). Numerous awards from industry associations have recognised the group’s outstanding performance. The environment is another important consideration for the Group. It has implemented programmes and policies to minimise the adverse effects its operation has on the environment. This includes reviewing the methods of construction, and use of materials to allow for a greener project construction process. Stefanutti is also passionate about contributing all it can to the local community. To this end it is involved in a number of Economic Development initiatives in local areas to focus primarily on education. CHALLENGING TIMES Willie Meyburgh, CEO of Stefanutti Stocks, acknowledges that the environment for construction business is a tough one at present. Despite this, the group achieved satisfactory results in its last financial statement. “This is despite an extremely challenging trading
environment”, stated Meyburgh. “Management regularly review and align each business unit and its respective divisions with the changes in their particular markets to ensure ongoing sustainability.” The issue of supply and much less demand is a major problem. The construction industry is undergoing a challenging period, as Meyburgh acknowledges. “The high levels of competition for available work may negatively impact operating profit margins going forward. However, we are of the view that potential growth prospects exist in certain sectors of the economy, which provide opportunities for our Roads & Earthworks, Building, Oil & Gas and Electrical & Instrumentation operations.” In other sectors, the group says it is well positioned to take advantage of the medium-sized projects coming to the marketplace to maintain the order book. ”Our multi-disciplinary and geographically diversified business structure provides a robust platform on which the group is able to position itself as a strong competitor in the southern African construction market. We will also continue to look for opportunities both in southern Africa and on a more selective basis further afield in sub-Saharan Africa.”
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Combining innovation and sustainabilit to provide an essential service
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hilst access to clean and safe water is taken for granted in many areas across the world, it is crucial to each and every person on the planet in order to survive. For Johannesburg Water SoC Ltd. the ability to offer world class African water and sanitation utilities is the vision and backbone of the organisation. With a mission to provide all people of Johannesburg with access to quality water and sanitation services, it is now in its 15th year of business. A municipal entity incorporated in 2000, Johannesburg water commenced business on 1st January 2001. The organisation’s infrastructure assets comprise of 89 water reservoirs, 28 water towers, 10 depots, 4 laboratories, 6 wastewater treatment works and over 12,500 km of distribution pipes. It is no mean feat to supply water to an entire community, with the entity supplying 1.4 million domestic, commercial and industrial customers. Serving an estimated consumer base of 4.5 million people, Johannesburg Water employs over 2,500 people.
Sustainable success The company is focused on innovation and has initiatives built around sustainable success whilst facing challenges the City is facing. The Blue Economy is a programme that has been introduced to take stock of critical needs that have been identified. This includes generating jobs, responding to basic needs of the community and ensuring that growth is generated into the local economy. The focus of this programme enables the City to control the impact on its economic and social development, using locally available resources. Through a methodological process involving scanning, screening and implementation, the scheme covers basic needs such as water, food, housing, energy, health, finance, waste management and much more, linking everything into a comprehensive model. Johannesburg Water has commenced two projects in
support of the Blue Economy brigade; these include the installation of in-pipe turbines and the replacement of 9 litre toilet cisterns with 4.5 litre cisterns. Through installing inpipe turbines, Johannesburg Water has reduced minimum night-flow which is the leakage rate at night. This enables the organisation to harness renewable energy from the water flowing through the pipe system at strategic locations. Moreover, the replacement of 9 litre toilet cisterns with 4.5 litre cisterns relates to the water conservation initiative, with the pilot project commencing in Soweto. In addition to its Blue Economy programme, Johannesburg Water is also focused on its green economy. Energy has become a key driver in the Municipal wastewater services value chain as eventually energy intensive technology, as used in activated sludge plants, will become unaffordable and a scarce resource in meeting the future demands of the high technology driven, wastewater treatment market. In turn, this will
impact the economy, environment and social activities in Johannesburg. Therefore, the city of Johannesburg (CoJ) has recognised the use of biogas as a means of contributing to the Green Economy, which forms part of the New Growth Path of National Government. Johannesburg Water manages, operates and maintains six wastewater treatment works on behalf of the CoJ for the central Gauteng region. Johannesburg selected anaerobic mesophilic digestion as the most economical and sustainable process following the introduction of the Wastewater Sludge Utilisation and Disposal Guidelines that were announced in 2006, by the Department of Water and Sanitation. In addition to the end product being compliant and well stabilised, biogas is also produced. This is the essential fuel for combined heat and power production. The future The initial installation at Northern Wastewater Treatment Works was completed just four years ago in 2012; it is capable of producing 1.1MW of power for the wastewater treatment plant. The impact of the installation is the production of 1.2MW-e renewable electricity and reduction in emission of 10,000tCO2. Since inception in 2012, 4,385MWh electricity was generated with 4,516 tons of CO2 Green House Gases offset.
Finally, the Northern Wastewater Treatment Works was the first of Johannesburg’s six wastewater treatment facilities to undergo an expansion and upgrade to improve sludge digestion. This has enabled the company to comply with the Department of Water Affairs’ South African Guidelines for Wastewater Sludge Handling and Disposal. Johannesburg Water also opted to implement biogas collection and storage facilities at the plant. Due to the high energy costs and increase in biogas production from the high performance equipment, Johannesburg Water was afforded a unique opportunity of introducing a biogas to energy project. The use of such technology is certainly unique to South Africa and has increased the efficiency of overall biogas to energy systems, whilst also saving the organisation money on electricity costs. Following the upgrades and investment, Johannesburg Water was named the winner of the 2012/2013 Most Outstanding Civil Engineering Project Achievement. The South African institution of Civil Engineering (SAICE) awarded Johannesburg Water this prize in its Technical Excellence category. The company is far from becoming complacent with its success though and continues to upgrade and install new equipment to ensure it continues to achieve. Its Driefontein facility was the latest to be upgraded with the installation of a digestion system as part of the expansion. The second biogas to energy equipment was also introduced as part of this upgrade and is nearing completion. Future installations for Johannesburg Water also include upgrades at Bushkoppies, Goudkoppies and Olifantsvlei.
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nandO’S Global fast-food chain with distinctive South African flavour
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amous for its signature peri-peri sauce, Nando’s has grown from a single restaurant to a global chain that has more than 1,000 restaurants in more than 30 countries. The one-of-a-kind sauce that gives Nando’s chicken its distinguished flavour is a product of the African Bird’s Eye Chilli, which was discovered hundreds of years ago in Mozambique by Portuguese explorers. A few centuries later, in 1987, the very same peri-peri sauce inspired Fernando Duarte to invite his friend Robbie Brozin to a small Portuguese eatery in Rosettenville, South Africa, to try some peri-peri marinated chicken. In Duarte’s own words, “I knew nothing about the food business, I just knew that it was the best chicken I had ever tasted.” The pair bought the restaurant, named it Nando’s, and the rest is history. In 2016, Nando’s is more than just a chicken restaurant. The distinct flavour of peri-peri has been bottled for sale alongside other sauces in retail shops and supermarkets. SOUTH AFRICAN ROOTS Nando’s restaurants and menus are adorned with imagery of Barcelos Cockerel - which for centuries has been a symbol of faith, justice and good fortune due to a 14th Century legend told in Portugal. If the logo, taste of peri-peri and grilled chicken aren’t necessarily synonymous with South Africa, each Nando’s diner has its own unique design, with earthy textures and colours, designed to
“remind us of our sunny Afro-Portuguese roots.” They feature original, local South African art and unique design touches, all while Afro-Luso beats play out through the speakers. THE NANDO’S WAY One of Nando’s unique selling points is the fact that customers can have chicken their own way. They decide on the heat of the sauce they wish their chicken to be cooked in, from Lemon and Herb to Extra Hot. Chickens are locally-sourced, delivered fresh and never frozen. They are marinated for 24 hours, in a marinade that contains no preservatives, colourants or artificial flavours. Chickens are trimmed of excess fat before cooking, and flame-grilled which reduces the fat content even further. Nando’s restaurants are a mix of privately owned establishments and franchises. Due to the high demand, Nando’s franchisees must be talented business owners,
promoting an excellence in service levels and able to create a personalised, friendly and fun environment. Responsibilities include marketing the restaurant and the brand; business management, customer orientation, community relations; and people management. CUSTOMER PROMISE In South Africa, each and every restaurant has the Escudo promise blazoned on its walls. This passion-filled promise is to give customers the excellent quality and flavour that they expect. “It’s the Nando’s stamp of quality and something that we take very personally,” says the company. “We know our integrity lies in providing only the best products and service and that’s why the Escudo is such an important symbol to Nando’s and why it holds pride of place on our packaging and in our store.”
PEOPLE FIRST “Nando’s is not just about the chicken. It’s never been just about the chicken. It’s about the people who make the chicken.” That one simple motto has been a Nando’s saying from the very beginning. The ‘Nandocas’ as staff are collectively known, are the ‘big family’ people bringing the Nando’s experience to customer’s tables. Employees must buy into the company’s values: Pride, passion, courage and integrity. Nando’s couldn’t put it better. “Like in every family, some are quieter than others, some are the life and soul of the party and others are somewhere inbetween. But, at Nando’s, we love the fact that everyone is different – which is why everyone is welcome at our table!”
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SAUCES AND MERCHANDISE Peri-peri is at the heart and soul of Nando’s food. Its popularity led Nando’s to bottle the secret ingredient so the flavour can be taken anywhere on the go. Across the world, consumers can buy a range of sauces, marinades, spices, salts and snacks from retail stores and supermarkets. Despite being imported into a number of different continents, each bottle of peri-peri sauce is produced at a factory near Johannesburg overseen by co-owner Fernando Duarte and follows the unique recipe made in the same tradition as they were hundreds of years ago. In South Africa, the Loja (store) sells a wide range of Nando’s merchandise, from aprons to beach towels. SOUTH AFRICAN CHANGES An average of around 20 new restaurants a year open in South Africa, and last year Nando’s began a major relocation and revamp programme that Nando’s Southern Africa CEO Geoff Whyte says would “add larger, more beautiful stores.” Recently, Nando’s announced the appointment of Doug Place as Chief Marketing Officer of its Southern Africa business. Place joins Nando’s from Ster-Kinekor Theatres where he had been marketing director since 2011.
“Doug is one of the smartest marketers in South Africa. He boasts an enviable track record of success as evidenced by his impressive collection of local and international awards,� commented Whyte. “Nando’s is delighted to have someone of Doug’s calibre join our leadership team and we are looking forward to seeing him apply his special brand of magic to one of the world’s best-loved brands.� Research from Euromonitor International states that the value of SA’s chained fast-food chicken category is worth about R11.43bn, making it the strongest fast-food category in SA. Nando’s reach is set to continue to extend across the country, continent and world, too.
www.ctppackaging.co.za
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34 Barbara Road, Elandsfontein, 1406, South Africa P.O. Box 6610, Homestead, 1412, South Africa Tel: +27 11 345-4000
Fax: +27 11 345-4257
Pioneers in car rental
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vis Rent a Car may be an internationally recognised name, but its history in South Africa goes back decades. The company takes its name from its founder. It was Warren E Avis who first attempted to link car rental with airline travel back in December 1946. The Ford dealer from Detroit opened America’s first car rental counter at Willow Run Airport, but it wasn’t until 1972 that the car rental business had expanded to Johannesburg, Durban and Cape Town. Since then, the company has undergone several name changes, and in March 2005, Barloworld Limited acquired the full ownership of Avis Southern Africa. but one thing has remained the same. Its unparalleled service has made it the Avis Rent a Car the leading South African Car Rental Company, underpinned by the Brand Ambassador programme. That’s because each staff member at Avis has made a personal commitment to exceed customer expectations at every interface. Destinations include Cape Town, Johannesburg, Durban, Port Elizabeth, Garden Route and other cities, towns, and International locations. INNOVATION As pioneers of car rental services, innovation has always been at the forefront of Avis’ operations. The company’s ability to innovate and offer such a wide variety of solutions is one of the reasons why it has always stayed ahead of the competition. Back in the 1960s, Avis introduced a central billing charge card, an idea was not only a refreshing and
revolutionary idea for the car rental business but also inspired public charging systems in the USA. As technology improved through the decades, Avis’ luxury cars and chauffeur services have grown to include an impressive range of vehicles. In South Africa alone, over $21 million was invested in renewing and expanding Avis’ fleet and facilities in the mid 2000s. VISION, VALUES & B-BBEE With so much global competition it is essential for Avis to be consistent in their vision and values in every country it works in. Providing the best possible customer service isn’t just a target but an absolute necessity in every branch in each corner of the world. Avis Southern Africa is no different. Treating customers with empathy, honesty and
A NEW DAWN. It is with great pride that we announce plans to expand our network further into the African continent. Over the next few years, we will continue to roll out our full range of BMW sales, aftersales and tailored finance options enjoyed the world over. The future is bright, the future is Africa.
SEARCH BMW CORPORATE SALES TO FIND OUT MORE. T’S & C’S APPLY.
BMW Corporate, Direct and Special Sales
www.bmw.co.za
Sheer Driving Pleasure
humanity, Avis operates by the statements ‘We try harder’ and ‘People are more important than cars.’ Avis has always worked hard on maintaining cultural understanding and worked towards meeting the needs in each country it operates in. For the seventh consecutive year, Avis Rent a Car received a Level 2 B-BBEE contributor rating in South Africa, recording its highest ever score of 93.76. “The accreditation represents the seriousness of Avis’ intent to invest in and develop its people,” the company says. “It is our commitment to service excellence, together with our investment in our people that have insured that Avis is the leading car rental and total transport solutions provider in South Africa.” “We are proudly South African,” commented Chief Executive Car Rental Barloworld Automotive, Keith Rankin. “We are committed to playing a leading role in developing the country, its people and its economy. Our participation in the B-BBEE process is but one aspect of our operations as we also lead in sustainability and environmental initiatives in our industry.” SUSTAINABILITY Reducing its impact on the environment is a major consideration for Avis, and it has worked hard to put in place a flexible and effective sustainability programme. For the past decade, Avis’ expanded conservation approach has included other environmental matters, such as waste recycling and water conservation. Since 2008, its facilities have followed a programme to introduce intensive water reduction, and a year later
it became South Africa’s first Carbon Neutral accredited company in accordance with UN protocol. “In 2008, our appointment of a dedicated Sustainability Manager took our efforts to a new height, internalising the energy and increasing our company’s effort and focus on real change in the areas of our business that works against the ethos of sustainable and environmentally friendly business practice,” the company says. In addition, Avis was the first car rental company in SA to introduce Hybrid vehicle technology to the rental market in 2007. STRONG LEADERSHIP Avis’ Southern Africa’s executive team is led by Chief Executive Rainer Gottschick who oversees all car rental operations in sub Saharan Africa.
With a University education at the University of Pretoria, Gottschick’s background is in accounting. Gottschick has worked his way up to the top over almost 20 years, having joined Avis in 1998 as Financial Manager for co-brands and regional countries. Having fulfilled a number of other roles such as Group Financial Manager for Avis Southern Africa and General Manager, Regional Countries, in 2013 Gottschick took up the position of Chief Financial Officer, looking after all financial departments within Avis Southern Africa. Rainer was then promoted to Chief Executive of Avis Southern Africa in 2015.“Get the basics right to ensure a solid foundation and truly understand your customer’s needs,” is Gottschick’s personal philosophy. With him at the helm, Avis’ success looks set to continue.
2016 e Electra Mining Africa September 12th - September 16th Expo Centre, Nasrec Johannesburg, South Africa
Nigeria Com September 21st Lagos Oriental Hotel, Victoria Park, Lagos, Nigeria
African Business Coverage Issue 12
events AfricaCom 2016 November 15th - November 17th Cape Town International Convention Centre, Cape Town, South Africa
The Big 5 International Building & Construction Show November 21st - November 24th Dubai World Trade Centre, Dubai, UAE
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African Business Coverage Oliver Moy Publisher For enquiries email okm@aubusinesscoverage.com African Business Coverage Issue 12