G4S AFRICA
G4S AFRICA
Africa: The Land
of Security Opportunities PRODUCTION: Karl Pietersen
G4S, the global security company with a mass employee base across more than 20 African countries, is planning to secure its roots on the continent by consistently delivering high-quality services to its customers that need African know-how. 2 / www.enterprise-africa.net
G4S port security in South Africa
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As one of the largest employers on the African continent, G4S is a vital cog in Africa’s economy. The services it renders, the money it moves, the relationships it builds are all contributors to a growing African economic contribution in terms of global GDP. But the continent remains the poorest in the world, despite its more than one billion population and quickly growing markets (Economic growth in SubSaharan Africa looks set to average 3.6% in 2019–20 according to the World Bank). However, predictions from economists suggest that Africa
is the one region of the world where significant growth opportunities and returns on investments still remain. Companies in mature economies are looking to Africa as the last playground for development. This is why financial, retail, construction, hospitality, manufacturing, automotive, mineral, outsourcing, and many more industries are finding themselves opening up in Africa. Aside from the fairly obvious and well-known challenges of doing business on the continent (including politics, language, culture, climate, law, poverty, conflict, distances etc) there is the widespread problem
G4S cash in transit services in Soweto South Africa
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of under-funded police services, highlighted in South Africa - the continent’s most advanced nation – where just R104 billion was spent on policing in 2016/17 (R158 billion on public order). Without the assurances of safety and security, and a trustworthy local police force, companies can sometimes, understandably, choose to invest in other regions to minimise risk. This has fuelled the voracious growth of the private security industry on the continent, an industry where G4S is the uncontested leader. More than 100,000 employees across more than 20 countries makes G4S
G4S AFRICA
// EVEN THOUGH THERE ARE MANY CHALLENGES TO DOING BUSINESS IN AFRICA, THE CONTINENT STILL REMAINS AN ATTRACTIVE MARKET TO TAP INTO AND PRESENTS ENORMOUS GROWTH OPPORTUNITIES // one of the largest employers in Africa. If G4S was its own country in Africa, it would be larger than the Seychelles. According to UCT’s Associate Professor and Director, Institute for Safety Governance and Criminology, Julie Berg, private security is a mushrooming industry. “In South Africa, the number of businesses in operation is just under 9000, according to the Private Security Regulatory Authority,” she said in her article - Private security in Africa: time to regulate the bad and harness the good. “Almost two million security guards are believed to be in circulation, about half a million of whom are on active duty. “Many countries in Africa have reported an exponential growth in the industry over the past couple of decades. In South Africa the number of companies have doubled in the last 12 years and now outnumbers the public police force by three to one. There are many more examples across the continent – as numbers of private security personnel outnumber and outperform their public counterparts.” Clearly, private security is needed, and now that it has become so integral in everyday life, it pays to partner with a company that
comes with experience, power and a commitment to service delivery. G4S is the biggest in the business and President of the business for Africa is Mel Brooks, operating from the HQ in Johannesburg. He tells Enterprise Africa that the opportunities for the company in Africa remain significant. “Africa is an exciting and important regional market for G4S,” he says. “Even though there are many challenges to doing business in Africa, the continent still remains an attractive market to tap into and presents enormous growth opportunities. A combination of proven approaches, services and technologies are essential to address the multi-facetted security challenges Africa faces, and to instil continuous business growth.
“Across Africa, especially East and North Africa, we are growing very fast. We’re seeing that within our businesses, particularly in those regions, we are being approached by more customers and seeing our accounts grow. “We have a number of global clients already in Africa or who are showing interest to do business on the continent, where the security aspect is significant. My promise to them is that we can be wherever they are and wish to be.” He says that working across the continent has become normal for G4S and this is valuable for customers entering the market for the first time. “We have several customers that require our services and expertise on a Pan-African level. G4S prides itself
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G4S secure delivery in South Africa
in understanding ‘the bigger picture’. We have a diverse variety of services, ranging from Cash Solutions, Manned Security and Courier Services to Security Systems, Risk Services and even Justice Services, to meet our customers’ requirements
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and have a broad geographic footprint to meet demand for security in Africa and globally. “We use our global expertise and knowledge derived from providing security solutions in diverse regulatory environments in over 100 countries
around the world, combined with local knowledge to provide our customers in with elite and tailor-made security solutions in Africa. “If we continue on our quest of providing our customers with tailormade, innovative and integrated security solutions, I believe that our business in the Africa region will reach new frontiers and continue to grow.” But, even for a company like G4S - with significant clout not only in South Africa, Africa and around the world – it still has to perform dayto-day. And this has been extremely challenging in recent times with a spate of issues facing the company in South Africa, specifically in its important cash in transit business. In June, the company reported its officers transporting cash were targeted five times in one day. Several CCTV videos have emerged showing criminals violently targeting G4S vehicles and personnel. In some
G4S AFRICA
// I THINK THAT IF YOU WERE TO APPROACH A SECURITY OFFICER IRRESPECTIVE OF WHO THEY WORKED FOR AND ASKED THEM WHO THEY ASPIRED TO WORK FOR, THEY WOULD SAY G4S // areas, explosives have been used to gain access to the secure vehicles. Police Minister, Bheki Cele said last month that between April and November, 118 cash in transit heists had occurred. “I can report that we have made significant inroads in breaking the
(Not limited to the above)
backs of the syndicates involved in CIT robberies. While I am satisfied with the progress, our fight with these criminals is far from over,” Cele told media. “This is one of the crimes that seem to instil a tremendous amounts of fear in South Africans.” Brooks understands the issue and praises G4S staff for their constant high-quality and professional attitude even in the face of serious danger. “I believe that the great work our employees does to ‘secure your world’ and their continuous efforts to ‘live’ our company values, strengthens our image and supports us in unremittingly providing expert services to our customers. “Our business is defined by the high standards and expertise of our people. We treat our people with respect and we train them
well. We pay our people well and they are well looked after. We aspire to give people a future and career opportunities and that isn’t always the case with organisations across Africa. When talking to our customers, it is also important to them and it’s a meeting of values which can be hugely important. “I think that if you were to approach a security officer irrespective of who they worked for and asked them who they aspired to work for, they would say G4S,” he says. Building on the company’s already strong partnership with SAPS is vital in overcoming these challenges. “As an organisation, we seek to work with the security and law enforcement agencies,” says Brooks. “We are not a law enforcement agency, we are there to augment
(Not limited to the above)
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security operations around the continent. It is really important that we work alongside local law enforcement and authorities accordingly. Whatever we do, we have to understand the threats and risks our customer faces. The cash business
is an area that attracts a certain element of the criminal fraternity and we work with the police to better understand that, so a close working relationship is very important.” Working closely with SAPS will help to further G4S’s business
// THE CASH BUSINESS IS AN AREA THAT ATTRACTS A CERTAIN ELEMENT OF THE CRIMINAL FRATERNITY AND WE WORK WITH THE POLICE TO BETTER UNDERSTAND THAT, SO A CLOSE WORKING RELATIONSHIP IS VERY IMPORTANT //
G4S perimeter security in South Africa
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in South Africa and around the continent, all the time contributing to solid global performance. In November, the company released its results for the third quarter of 2018. Organic revenue growth was 2.5% for the third quarter, after 0.2% for the first six months, resulting in growth of 1.1% for the first nine months of 2018. “Organic revenue growth of 2.5% in the third quarter compares with 0.2% in the first half of 2018. Strong organic growth rates in security services in North America and Asia and in Cash technology
G4S AFRICA
G4S Cash in transit services in South Africa
solutions were partially offset by lower revenues in Benelux and conventional cash services,” said G4S CEO, Ashley Almanza “We continue to exercise commercial discipline in markets where labour supply is tight and whilst this is expected to constrain revenue growth in 2018, our new contract wins and substantial, high quality pipeline provide good momentum into 2019,” he added. In Africa, the future is very bright for G4S, and Mel Brooks is confident about everything the business is looking to achieve.
“I’m hugely enthused about the opportunities in Africa, I think the innovation that we offer our customers again presents an opportunity to grow but we have to grow profitably – that is really important for us,” he says. “I believe that the future of the security industry will be heavily influenced by technology and that there is huge potential for technology in the African market. Although our prime regional focus will continue to be our core services of manned guarding, cash security and facilities management, the intention is also to
bring new energy and innovation to our electronic security sector and its consultancy role services in Africa.” With the private security industry estimated to be worth R40 billion annually in South Africa alone, G4S is well-positioned to improve its already strong market share, continually driving economic development and corporate success.
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Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. Š CMB Media Group Ltd 2018
AS FEAT UR ED IN
ENTERPRISE AFRICA
DECEMBER 2018