Enterprise Africa August 2015 by CMB Media Group

THE BUSINESS MAGAZINE FOR AFRICAâ&#x20AC;&#x2122;S INDUSTRY LEADERS

AFRICA

ENTERPRISE August 2015

www.enterprise-africa.net

SKA PROJECT:

A Giant Leap for

Telescope Technology

ALSO IN THIS ISSUE:

Caratco / Jurgens CI / Ukhuni / Addax

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Moving Forward

EDITOR’S LETTER

Timothy Reeder EDITOR tim@enterprise-africa.net Sophie Bolderstone SENIOR PROJECT MANAGER sophie@enterprise-africa.net Sam Hendricks SENIOR PROJECT MANAGER sam@enterprise-africa.net Karl Pietersen PROJECT MANAGER karl@enterprise-africa.net David Napier PROJECT MANAGER david@enterprise-africa.net Rose Whittaker PROJECT MANAGER rose@enterprise-africa.net John Mulley FINANCIAL DIRECTOR john@enterprise-africa.net Jane Larkman ACCOUNTS MANAGER jane@enterprise-africa.net Design by Naked Marketing +44 (0) 1953 850211 www.nakedmarketing.co.uk

Published by CMB Multimedia Chris Bolderstone – General Manager E. chris@enterprise-africa.net Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU, T. +44 (0) 20 8123 7859 E. info@enterprise-africa.net www.enterprise-africa.net CMB Multimedia 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. © CMB Multimedia Ltd 2015

Welcome to our latest edition…

We’ve been spending a long time this month looking at the effects of good as well as poor management of people – it’s so often the topic that either directly or indirectly defines the success or otherwise of a company. Without wishing to turn this page into a blog discussing in depth the rights and wrongs of the situation, the current unrest in the mining industry is far from a new topic and undoubtedly has a major negative impact on the economy, whilst strikes at MTN ultimately cost the CEO his position. On the other side of the coin, wireless carriers new CEO has helped to end the strikes and pledges to restore unity to the company – it will be interesting to read more about this in coming months. On another positive note, a company making a real show of successful staff management is Ukhuni Business Furniture, whose co-founder speaks to us this month in an exclusive interview to tell of growth across the business. Other features include a look at the quite frankly breathtaking SKA & MeerKAT project, exploring South Africa’s leader in leisure holidays Jurgens CI, as well as many other fascinating case studies of industry leading companies. As always, we thank you for taking the time to read our publication which we take great pride in putting together and bringing to you every month. If you would like to get in touch, feel free – we welcome your comment!

Timothy Reeder EDITOR

GET IN TOUCH +44 (0) 20 8123 7859 tim@enterprise-africa.net

www.enterprise-africa.net / August 2015 / 3

06/NEWS: The Month that was...

12/SKA PROJECT: A Giant Leap for Telescope Technology

A round up of some of the latest news stories in the industry

78/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors.

12/

4 / August 2015 / www.enterprise-africa.net

CONTENTS 08/

32/

56/

08/CARATCO: A Diamond is Forever

46/UKHUNI BUSINESS FURNITURE: Sitting Pretty at the Desk of Success

From its beginnings in 1985 as a small wholesale company, Caratco has grown through innovation and business expertise to become one of the largest diamond, gem and jewellery groups in South Africa.

Ukhuni have constantly striven to cater their wares to the diverse needs of office-based businesses, designing, manufacturing, delivering and installing a range of innovative, bespoke office furniture and fixtures.

24/JURGENS CI: The key to the Outdoors

56/AVENG MANUFACTURING DFC: Joining Forces in Valve Production

With caravans enjoying an ever increasing popularity across South Africa, Jurgens Ci is well placed as the largest manufacturer in the country.

The founding in 2001 of Dynamic Fluid Control Pty Ltd brought together seven of the most well known and established brands in the local and international valve industry.

32/ADDAX: Sierra Leone’s Sustainable Future Addax Bioenergy is one of three energy subsidiaries through which AOG Energy pursues a strategy of diversified investment. Since its foundation in 1987 it has been investing in energy, and has gone on to be regarded among the most agile, principled and adaptable firms in the sector.

38/SASRIA : Protecting South Africa Against Extraordinary Risks Sasria’s core business is the provision of short-term insurance for riots, strikes, terrorism, civil commotion and public disorder to a range of corporate and individual policyholders.

64/NANDO’S SOUTH AFRICA: Building a Global Chicken Empire Now a ubiquitous sight in 35 countries across the world, the Nando’s story began hundreds of years ago, with Portuguese explorers setting sail for the East in search of adventure and the legendary spice route.

74/DARK FIBRE AFRICA: Connect and Conquer Over the past seven years as one of South Africa’s leading providers of telecommunication cables, Dark Fibre Africa has grown significantly. With their open access business model allowing small and large businesses alike to connect to high speed, reliable and affordable fibre optic internet.

www.enterprise-africa.net / August 2015 / 5

NEWS IN BRIEF TELKOM’S BCX DEAL APPROVED The Competition Tribunal has approved Telkom’s purchase of Business Connexion (BCX), the two companies announced in a joint statement on Tuesday. The companies further stated that the last remaining hurdle for the deal was the issuing of a compliance certificate by the Takeover Panel, which the companies said would be approached in due course. The companies said once the certificate was issued, the call option on the deal, which was an undertaking to purchase shares at a specific price on or before a future date, would become unconditional and shareholders would be free to conclude the transaction.

SOUTH AFRICA STRIVES TO SAVE JOBS AT UNDER-FIRE MINES South Africa’s mining ministry held talks with companies and unions over planned job cuts on Wednesday, as President Jacob Zuma’s government frets over high unemployment ahead of key elections next year. “It’s about jobs, jobs, jobs and none of us should leave this place without committing something to the table,” mining minister Ngoako Ramatlhodi told reporters. Zuma’s African National Congress (ANC) heads into local elections next year with its main rival the Democratic Alliance (DA) targeting wins in key metropolitan areas, including Gauteng, home to economic hub Johannesburg. The DA will target the ANC on its inability to reduce stubbornly high unemployment, which officially stands at 25 percent but some experts believe is much higher.

SOUTH AFRICAN MOBILE OPERATOR MTN AGREES DEAL TO END TWO-MONTH STRIKE South African mobile operator MTN Group and union leaders reached a deal over bonuses on Thursday, ending a two-month strike that disrupted the supply of some new mobile phones in its home market. About 2,000 workers led by the Communications Workers Union (CWU) downed tools in May at Africa’s biggest mobile phone operator, demanding an 8 percent pay rise and 16 percent bonus payment. The CWU said it had agreed to an 8 percent bonus payment this year and 12 percent next year. Both payments are guaranteed and not related to the performance of the company. “Members are expected to go back to work within two days after the signing of the agreement,” CWU General

Secretary Aubrey Tshabalala said. The two parties failed to reach a deal on monthly wages, but the CWU has said it would accept MTN’s 8 percent offer if performance conditions are removed. MTN, along with its rivals in Africa’s most advanced economy, is trying to contain costs in the face of tough competition that has hit profit margins. The company, which reported a 9 percent increase in full-year profit in March, employs about 6,500 people in its home market, where it trails rival Vodacom by subscriber numbers. The end of the strike follows the appointment of Mteto Nyati as chief executive of the South African business after the resignation of Ahmad Farroukh last week.

TRANSNET CFO JOINS SOUTH AFRICAN POWER UTILITY ESKOM South Africa’s state-owned Eskom hired Chief Financial Officer Anoj Singh on a six-month contract from fellow utility Transnet, Eskom said on Thursday. The announcement comes a day after Eskom renewed the contract of its acting CEO Brian Molefe, also seconded from Transnet. Singh will be replaced by Garry Pita on an acting basis, Transnet said. The suspensions of Eskom’s top executives in March were triggered by an inquiry called by the cash-strapped utility’s board, and led to the

6 / August 2015 / www.enterprise-africa.net

eventual resignation of then chief executive Tshediso Matona after less than 12 months in the job. On Wednesday, Eskom said the inquiry had found no wrongdoing by any of the five executives under scrutiny. Earlier this month the government sold its stake in mobile phone firm

Vodacom, at a 10 percent discount to market prices, to raise funds for the cash-strapped power utility which has a 200 billion-rand ($16 billion) funding gap. Regular electricity outages have brought the power grid close to collapse, putting a brake on growth in Africa’s most advanced economy.

NEWS ROUNDUP RAND HITS FRESH 14-YEAR LOW AS ECONOMY STRUGGLES South Africa’s rand touched a fresh 14-year low against the dollar on Wednesday amid concerns about the ailing local economy and after a US Federal Reserve official backed a US rate hike next month. Investors are worried that growth in Africa’s most advanced economy has remained subdued since a 2009 recession with output seen below 2 percent this year, partly due to the worst electricity crisis in seven years. The economic development minister said on Wednesday that the key mining sector, which accounts for about 7 percent of GDP, was in “trouble” as it struggled with widespread job losses and lower commodity prices. The rand hit a session low of 12.7725, its weakest since December 2001 according to Thomson Reuters data. The local unit was trading at 12.7580 by 0631 GMT, down 0.1 percent from Tuesday’s close. The move partly reflected a stronger dollar after a U.S. Fed official expressed support for an interest rate hike in September.

MAJOR UPGRADE FOR RICHARDS BAY COAL TERMINAL RICHARDS Bay Coal Terminal (RBCT) is investing R1.34bn over the next three years in a major equipment replacement programme and a new laboratory, it said on Thursday. The substantial investment by the private sector shareholders of the terminal comes at a time when coal prices are at multi-year lows and infrastructure investment in SA has largely stalled in an environment of weak economic growth. RBCT chairman Mike Teke said at a launch event at the terminal that RBCT was demonstrating its confidence in the longer term future of the mining industry at a time when the industry was facing headwinds. Discussions were ongoing between Chamber of Mines members and the government on amendments to the

Mineral and Petroleum Resources Development Act, and government had announced plans for a major nuclear energy programme. RBCT members remained confident that coal mining would continue in SA for a long time. In its last financial year RBCT exported 71-million tonnes (mt) of coal and it was targeting 74mt this year, Mr Teke said. Within two years the target was 81mt. By the time the global coal sector recovered, the terminal would be ready with new equipment to deliver coal to international markets. Earlier this week Transnet said it transported 76.3mt of coal by rail in the year to March. The discrepancy arises because RBCT and Transnet have different year ends.

COAL GETS R186M EQUITY BOOST Coal of Africa (CoAL) will receive an equity injection of $14.7 million - or about R186 million - as well as a $10 million, or R127 million, loan from a Singapore-based investor. In a statement to shareholders this morning, the company says it received these boosts from Yishun Brightrise Investment, which is registered in Singapore and is a private investment company with a

focus on mineral investments. Yishun has interests in coal and nickel in both China and Indonesia and is, through this deal, expanding its investment into Africa. CoAL says the equity investment will be used to finance pre-construction costs at the Makhado coking and thermal coal project as well as for general working capital.

www.enterprise-africa.net / August 2015 / 7

8 / August 2015 / www.enterprise-africa.net

CARATCO

A Diamond

Is Forever

PRODUCTION: Timothy Reeder

From its beginnings in 1985 as a small wholesale company, Caratco has grown through innovation and business expertise to become one of the largest diamond, gem and jewellery groups in South Africa. It is the sole distributor in the country of the Forevermark brand of diamonds, and we look at the success it has enjoyed so far as well as Caratco’s plans to grow its popularity.

Caratco has many specialities throughout the industry, including its wholesale and retail operations, while three generations of resident gemologists ensure its continued unmatched expertise in the gem industry. Anna Russo, Forevermark Brand Manager at Caratco, takes us through the history of Caratco’s relationship with The De Beers Group of Companies and its involvement with selling its diamond brand Forevermark throughout the country and beyond. “Caratco is a well-established diamond business in South Africa,” she explains, “and since the end of 2011 we have been partners with The De Beers Group of Companies to distribute Forevermark, their diamond brand.” Forevermark benefits from more than 125 years of diamond expertise accrued by the De Beers Group. Its branding is the guarantee that each of these diamonds

shares three vital characteristics - that it is beautiful, rare and responsibly sourced - and with less than 1% of the world’s diamonds eligible to become a Forevermark diamond they grow increasingly sought after. Each one is inscribed with the Forevermark icon as proof of its calibre, while its uniqueness is heightened further by the individual identification number sported by them all. Invisible to the naked eye, the inscription is made using bespoke technology from The De Beers Group of Companies. The actual size of the inscription found on Forevermark diamonds is only 1/20th of a micron deep and can only be seen using a special Forevermark viewer which can be found in Authorised Forevermark Jewellers. “At Caratco we have the exclusive license to distribute the brand in South Africa,” Russo continues, “and we have already expanded our operations into

www.enterprise-africa.net / August 2015 / 9

BUSINESS PROFILE

//FOREVERMARK IS ONE OF THE FASTEST GROWING BRANDS IN THE WORLD// Namibia and Botswana. Until now, we have had great success in the tourist market, but increasingly we are partnering with independent Jewellers who are selling Forevermark in the country. The brand is one of the fastest growing brands in the world, and the fastest in terms of diamonds. It is De Beers’ only diamond brand, and the focus here is particularly on the diamond, rather than on jewellery, which is what sets it apart from the jewellery brands offered by competitors.” Diamonds have long stood as a symbol of lifelong commitment, as perfectly embodied by its planned relaunch of a previously successful campaign, A Diamond Is Forever. “It was such a successful slogan,” Russo explains, “that it is vital that we

re-appropriate it and build on that heritage. Forevermark will commence a new marketing campaign based on this slogan in the US, initially, later this year, and it will reach us at the beginning of next year. The idea of a promise will remain very central to the brand, and the slogan is being recognised as the best of the 20th century as is very much associated with engagement and timeless love. It therefore makes perfect sense to use the slogan again and build on this very powerful association.” The De Beers advertising will be familiar to many from years ago, with the ‘Diamond Is Forever’ concept having been translated and transmitted throughout the world, garnering a

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widespread popularity for the De Beers name. “Forevermark is growing significantly in the bridal market, which makes it even more logical for this language to be re-used now.” The global launch will come in the final quarter of this year, timed to coincide with the festive season, in Forevermark’s biggest markets, the US and Asia, before reaching South Africa at the beginning of 2016. “We are a little on the periphery compared to those two, but it will certainly be a huge campaign when we switch to this new slogan.” This worldwide method of marketing does not hamper the South African aspect of operations, rather the brand’s ubiquity furthers its success in the country. “We feel we benefit from the global campaigns in these huge markets. It is a privilege, and an advantage, to work with a brand so powerful and recognisable, and we see the benefit when we have visitors from the United States and China. These

CARATCO

//LAST YEAR WE INSCRIBED OUR ONE MILLIONTH DIAMOND// people recognise the brand having seen it in their own country. It goes hand in hand with more than 75 years of successful marketing by De Beers all over the world, and this global picture really helps us to grow the brand in our country.” “As the land of diamonds, Forevermark works particularly well given South Africa’s popularity with tourists from across there globe,” she continues, “with a diamond being an excellent memory of a vacation, especially a visit to Southern Africa where many of the diamonds are actually mined. People want to leave the country with something which resonates with the area, and this

makes the diamond even more special if it is bought from here. We know that Forevermark diamonds come from De Beers mines, and are carefully selected from few locations, while there is a real emphasis on where they originate. De Beers is now looking at investing in expanding the operations at the Venetia site until the 2040s, going from open pit to underground and providing many Forevermark diamonds in the coming years. ” Anna Russo is clear in the priorities for the Forevermark brand moving forward. “I would say that we have secured the tourist market, and the challenge now is to grow the local and the bridal market. The focus on bridal

holds much promise, as this diamond just matches it perfectly.” This goal will be achieved through a combination of successfully relaunching the historic slogan, as well as expanding its current South African footprint. “We plan to increase the number of Jewellers selling Forevermark in South Africa,” she states, “especially those who perform well in bridal sales. This is in line with Forevermark’s global plan to grow the brand in the bridal market, and we are now looking to do the same in South Africa.”

CARATCO +27 (0) 11 011 9100 info@caratco.co.za www.caratco.co.za

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www.enterprise-africa.net / August 2015 / 11

SKA PROJECT

A Giant Leap for

Telescope

Technology PRODUCTION: Timothy Reeder

The SKA Project is an international endeavor to build the worldâ&#x20AC;&#x2122;s largest radio telescope, with a collecting area and ultimately sensitivity that will be orders of magnitude higher than any other instrument that exist today. South Africa has already demonstrated excellence in the field through its designing and building of KAT7 and MeerKAT. The KAT7 telescope, with all seven dishes completed and producing scientific images paved the way for MeerKAT. The MeerKAT telescope (a 64 antenna array and official pathfinder to the SKA) is progressing well and set to start limited science observations in 2016, coming up to full science capability in 2017.

www.enterprise-africa.net / August 2015 / 13

SKA PROJECT

//THERE ARE VERY COMPELLING SCIENTIFIC CASES TO BE MADE FOR BUILDING THESE TELESCOPES//

Using thousands of receptors in three unique configurations, the Square Kilometre Array (SKA) will afford astronomers unprecedented access to the sky, enabling them to survey its entirety thousands of times faster than any current system. To be colocated in Africa and in Australia, it will boast an image resolution quality 50 times greater than that of the Hubble Space Telescope to give an unprecedented scope of observations. The SKA Organisation itself is headquartered at Jodrell Bank Observatory, near Manchester, UK, and was established in December 2011 as the central control hub for a global team who will be building the SKA over the coming decade. Upon completion, the South African MeerKAT radio telescope will be an array of 64 interlinked receptors, meaning the complete antenna

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structure with the main reflector, subreflector and all receivers, digitisers and other electronics installed. It is currently under construction some 90 kilometres outside the small Northern Cape town of Carnarvon, and is a precursor to the Square Kilometre Array (SKA) telescope. MeerKAT will be integrated into the mid-frequency component of SKA Phase 1 (SKA-mid) and thus become an integral aspect of the largest and most sensitive radio telescope in the world, as MeerKATat Project Manager Willem Esterhuyse explains. â&#x20AC;&#x153;MeerKAT is the 64 antennae array that we are currently building, which is expected to be completed in 2017. It will be, upon completion, the most sensitive radio telescope in the world in L-band, until SKA-mid is completed. SKA mid will be a total of 197 antennas (64 MeerKAT antennas combined with an additional 133 antennas).â&#x20AC;?

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The scale of the SKA marks a considerable leap forward in terms both of the engineering and of the research and development involved in building and delivering a radio telescope, and when operational it will deliver a similarly remarkable increase in the capabilities of the science that can be done with the instrument. “The primary return of an instrument like this is the science,” continues Esterhuyse. “There are very compelling scientific cases to be made for building these telescopes – this ranges from exploring the formation of stars and galaxies in the early phases of the universe and studies into phenomena like dark energy and dark matter.” The importance of an instrument with such a vast scope as SKA becomes clear when Esterhuyse explains the information it will be able to collect. “In simple terms, the bigger collecting

//SEACOM THE BACKBONE OF AFRICA Eight years ago a group of private investors established SEACOM with a clear purpose and vision: they wanted to make connectivity to the global Internet more accessible to people throughout Africa. When they launched the SEACOM undersea cable in 2009, its impact on data communications across Eastern and Southern Africa was immediate. Overnight, African network operators and service providers had access to plentiful and affordable international bandwidth for the first time. This in turn helped to set off a telecoms revolution across the continent, which has resulted in a huge increase in the availability of broadband-enabled services for end-users in a region where Internet access for an ordinary private citizen was prohibitively expensive just a few years ago. One of the core drivers of SEACOM’s Corporate Social Investment strategy is to fast track African ICT skills and enterprise development. This has been accomplished by leveraging its existing internet infrastructure to provide internet connectivity support to universities, high schools, ICT innovation centers, as well as ICT learning and training centers throughout Africa. Currently, SEACOM provides drastically subsidized high-speed bandwidth of

16 / August 2015 / www.enterprise-africa.net

almost 25 Gbps to educational institutions and innovation centers in Southern and East Africa. Apart from having unlimited access to the research and educational resources that have been made freely available online over the past 10 years, for the first time, Africa can participate in collaborative global distance learning initiatives that exchange real-time bandwidth-intensive voice and video. In line with this philosophy, SEACOM reaffirmed its commitment to supporting development and growth within the African scientific community by signing a Memorandum of Understanding with the Square Kilometre Array (SKA) SA office in 2011. South African, African and international broadband connectivity to the continent will need to grow exponentially in order to meet the challenge posed by the SKA project. With SEACOM’s expertise, and African-focused network with global reach, we are well suited to be a key infrastructure partner in projects like the SKA as well as others like it across the African continent. www.seacom.mu

SKA PROJECT

//WE ARE DEVELOPING A WORKFORCE SKILLED IN SCIENCE AND ENGINEERING THAT CAN GO INTO INDUSTRY AND REALLY MAKE A DIFFERENCE// area that you have available, the weaker the signal that you can detect - basically you have a more sensitive instrument. As the signals that are detected become weaker, the further back you are able to look in time. For example, if you emit a signal it starts travelling out in a sphere, so as you go further out in that sphere fewer photons pass through it, and thus a weaker signal is present.â&#x20AC;? The MeerKAT project is creating a large group of young scientists and engineers with world-class expertise in these technologies, while as Esterhuyse explains, the technology is cutting-edge. And like

little which has come before it. â&#x20AC;&#x153;We had the opportunity to learn from what other people have done before us and by utilizing the advances in technology combined with some clever engineering we managed to improve significantly on what was initially considered to be the achievable standard. If you look at radio telescopes, and specifically arrays the baseline until now has been the VLA in new Mexico. When we specified MeerKAT that was the level of performance that we considered to be the baseline. We realised that we needed to be able to at least match the capabilities of that facility, which is

www.enterprise-africa.net / August 2015 / 17

BUSINESS PROFILE

in the Northern hemisphere, but now we are confident that we will improve on that baseline. With MeerKAT in the Southern hemisphere new scientific research opportunities open up, which we can optimize with the increase in sensitivity. SKA mid (of which MeerKAT will form about one third) will be a significant performance step up, but until then MeerKAT will be a world-class instrument that will allow us to perform hugely exciting science observations – truly a national facility to be proud off.” The project is currently in what is termed the industrialisation phase, ever progressing toward its expected completion in mid-2017. “We’ve got four antennas up,” says Esterhuyse,

“and quite a number of others in progress, which will go to the site soon. Internally, we’ve set up facilities to produce our digitisers and the receiver manufacturing and correlator PCB units has been contracted. The control and monitoring and data processing software we are developing in-house, building on what has been done for KAT7. Having shown that we can meet our specs and that our performance modelling of the system has been done accurately, it’s a matter now of rolling out the technology and commissioning systems on schedule.” At the moment it is intended that MeerKAT will be integrated into SKA

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towards 2022, a gap of around five years which will allow a series of scientific projects to be undertaken. “There are senior scientists around the world who already have programmes approved for MeerKAT, in terms of time allocation and the kind of science they are looking to do. We now need to press on and finish MeerKAT - we will be executing the last proposals that we have and then MeerKAT will be integrated into SKA Phase 1.” Many of these leading scientists are already involved with SKA on science through the seven-dish MeerKAT precursor array KAT-7, the world’s first radio telescope array to feature composite antenna structures. These dishes were

SKA PROJECT

//WE FOCUSSED STRONGLY ON A HIGH LOCAL CONTENT FOR MEERKAT, BECAUSE WE WANTED LOCAL INDUSTRY TO BENEFIT FROM IT// completed by December. While the initial intention with KAT7 was that of an engineering testbed, it is now doing routine science, which has worked out very well as relationships and data interfaces are established with scientists who will be working on MeerKAT. This has certainly assisted in getting MeerKAT architectures

defined and should allow for a smooth transition from engineering to science operations”, says Esterhuyse. In the construction of MeerKAT there has also been a strong focus on maximising local content in order to maximize the benefit of MeerKAT to South Africa and South African industry. “We focussed strongly on

a high local content for MeerKAT, because we wanted local industry to benefit from it, both in terms of the work they did and the technology they developed. With the antenna contract there is a contractual 75% local content requirement. Additionally, considering the operations of instruments like MeerKAT and SKA there is significant benefit to being the entity that operates the instrument for the next 50 years that provides high level sustainable job opportunities for many South Africans as the yearly operational budget of a facility like this is a significant percentage of the construction budget.” Infrastructure tenders have

www.enterprise-africa.net / August 2015 / 19

SKA PROJECT

//MEERKAT IS A HIGHLY IMPORTANT INSTRUMENT, AND WILL ALLOW US TO EXPLORE HUGELY EXCITING SCIENCE// also been awarded locally for most of the infrastructure components, including roads, buildings, power reticulation, construction camps, an air strip and the KAT 7 and MeerKAT Building Management System. Apart from the science return there are also significant other benefits associated with MeerKAT. The opportunities that the project looks set to bring to the country as a whole are themselves highly significant, particularly in changing the view held by many academic institutions of South Africa and the human capital development it will entail. “Even just looking at MeerKAT now, we have

already awarded close to 700 bursaries since 2005”, details Esterhuyse, “in various areas from technician level through Masters, PHD, post-doctoral up . Most of the bursaries awarded have been in the science and engineering field an area we believe will have a significant impact on the economy. Even if we cannot provide work for every single one of these graduates ourselves, what develops is a workforce skilled in science and engineering, a workforce that can go into industry and really make a difference to the economy of the country.” This closely echoes the sentiments expressed by Prof. Justin Jonas, Associate

20 / August 2015 / www.enterprise-africa.net

Director of the SKA South Africa Project, who added that: “the selection of Africa to host the mid-frequency SKA array, and the incorporation of the locally designed and built MeerKAT into the first phase of the SKA, is a clear statement by our international peers that Africa has become a destination for world-class fundamental scientific research and cutting-edge technology development,” while Tony Beasly, Director at the National Radio Astronomy Observatory (NRAO), commented after visiting the site that, “MereKAT is the most exciting cm-wave telescope build underway on the planet, and SKA-SA is doing a top-notch job managing the project.” South Africa is now being seen as the premier destination for cutting edge science, and MeerKAT is helping to establish Cape Town as the hub of high-tech endeavours. There is also what Esterhuyse terms a “reverse brain drain” effect at work, whereby many South Africans

SKA PROJECT

//WE HAVE A HIGHLY TALENTED TEAM, WHICH IS FOCUSED ON BECOMING THE BEST IN THE WORLD// are returning from overseas to work on this project. “We’ve also had very senior scientists who have moved to South Africa to be involved in MeerKAT, some of those taking up senior positions at South African universities,” he continues, “so the knowledge transfer that occurs in that environment is massive.” The experience gained by SKA SA allows it to play a major role in SKA development, and will prove hugely beneficial to the project as a whole, particularly in its ability to attract leading scientists and engineers to Cape Town. “The people involved in this project have had access to individuals who have been at the

forefront of radio astronomy for many years, and a lot of them are at the point now where they are close to, if not the best, in the world. They may not be as well known, but technically they are as good as the most prominent names in the field, and only through their work on the MeerKAT project could they have acquired these types of skills. I fully expect many of these to be the well-known names that will become role models and mentors for future generations.” Ultimately, the success of a project of this scope comes down to the people involved in its execution. “We have a highly talented team,

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which is focused on becoming the best in the world,” explains Esterhuyse. “We have a very simple saying, that IP walks on two legs. That’s exactly the case here - a lot of our senior guys have been here since the very beginning. Of course, in between people have been added to the team and many of them have made tremendous contributions, but one of the key things is that for the people that started all of this, it was so much more than a job, and today most of them are still here. The continuity this brings makes a huge difference and has been crucial to our success.”

SKA PROJECT 021 506 7300 / 011 442 2434 www.ska.ac.za

connect your future

A dynamic new market leader has emerged Following the integration of Dimension Dataâ&#x20AC;&#x2122;s Advanced Infrastructure operation and Plessey, a dynamic new market leader has emerged; one that remains focused on the planning, building and support of innovative ICT infrastructure and one that is now bigger and stronger, with a broader range of innovative end-to-end solutions for a wider market across Africa. Plessey is a company with a distinguished heritage and an exciting future. Founded almost a century ago in 1917, Plessey has been operating in Africa for over 50 years and continues to thrive in a rapidly changing industry by anticipating trends, evolving and expanding its service offerings to meet client needs.

Plessey offers a broad range of end-to-end integrated solutions to connect you to the future.

Our Mission To connect Africa through solutions that demonstrates Innovative thinking and best practice, that reflects in the structures we build, the technology we provide and the way we support and manage it for our clients.

Tel:+27 (0)11 655 1700 | Fax:+27 (0)11 655 1700 | Email: Info@plessey.co.za | Web: www.plessey.co.za

JURGENS CI

The key to the

Outdoors

PRODUCTION: Timothy Reeder

With caravans enjoying an ever increasing popularity across South Africa, Jurgens Ci is well placed as the largest manufacturer in the country. Established 62 years ago, it has gone on to command a 90% share of the local caravan market and operates throughout the many aspects of the outdoor lifestyle market.

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BUSINESS PROFILE

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JURGENS CI

A familiar sight across South African neighbourhoods is the retail brand Campworld, under which Jurgens distributes its products locally. As well as its reputation for manufacturing caravans the company is also renowned for the quality and engineering of its trailers and for its specialist conversions of purposespecific vehicles. Jurgens Ci also manufactures trailers and truck bodies, ranging from luggage trailers and utility trailers to a range of innovative new truck bodies that allow for versatile modular assembly anywhere. Jurgens Ci Managing Director Bradley Salters talks us through the development of the company and the many different strands that now comprise it. “Jurgens was originally established about 60 years ago, as a caravan and trailer manufacturer. Today we cover a multitude of brands and cater for pretty much the entirety of the outdoor lifestyle business, right through from an entry-level trailer to luxury caravans, and almost everything in between.” “We are the country’s go-to camping and caravan company,” states Salters, when asked to describe what really defines Jurgens Ci as a business, and it is a level of renown which has helped Jurgens to enjoy a comprehensive presence across the country. “We also serve the off-road vehicle market through our Safari Centre franchise. Currently, we have 34 full-service dealerships throughout the country, which comprise caravans, trailers and camping gear. We’ve then got about six who deal just in trailers and camping gear, Alongside this compliment we’ve then got a mix of Safari Centre stores, about 10 of which are linked to Campworld sites and five independent. We manufacture a lot of our products ourselves, particularly the things which go on wheels as well as our canvas collections, and then most of

//WE USE OUR EXISTING MANUFACTURING PROCESS TO CREATE DIFFERENT PRODUCTS//

our camping gear is either imported or sought from local distributors which we then wholesale.” The product range which Jurgens now presents is the result of much diversification within the company since its beginnings. “If you go back, say, twenty years, then Jurgens was still purely a caravan manufacturer,” Salters tells us. “The trailer side came into the equation about eight years ago, while the camping gear has been in existence for around ten years now. The idea is to be able to supply our dealers with pretty much anything they need. Where they would potentially have used to source certain things from other places, we have grown our business to better cater for their needs. We also have representation in Australia, where we own 70% of Jurgens Australia, a dedicated caravan manufacturer over there where we can make our product.” Having ownership of such a wide range of business arms across such a wide footprint proves highly beneficial in many ways, although it is not without its complications. “Because of the multitude of businesses we have seen varying performances from each of these over the last year or so. The markets in which we are involved are actually fairly stagnant at present, which is of course nothing disastrous, but as such a dominant player in the market the only way it is going to grow is by our own endeavours. In time we will look to become a components manufacturer to overseas operations. As an example, there is a short-term window which is completely outside of our existing industry, which involves manufacturing some components for the new South African Bombardier trains. In time, if successful, this could well feed into an export contract for Bombardier in Europe and hopefully worldwide. That comes through utilising our existing manufacturing process to create a slightly different product, not too far removed from what we currently make.” This dominance of the market, which sees Jurgens hold in the

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BUSINESS PROFILE

region of a 90% share, brings with it a responsibility on Jurgens Ci’s part to facilitate its expansion themselves. “Caravans are still our core business, but with the off-road caravans we are in the region of 50%, so there is certainly some opportunity within this, although it is not a huge market. Similarly, we have about 40% of the off-road trailers market and are certainly looking to grow that in time, while the luggage trailer side is a tight business and one we are not looking to grow, as the benefits that would bring are not so remarkable. For us, what is really key is dealer performance, and ensuring that they are doing well, as this is obviously central to feeding our business.” One way of achieving such growth is through promoting the attractiveness of this type of holiday to South Africans,

//PERSPEX SA CREATIVELY INSPIRED. SOLUTIONS DRIVEN For the past 60 years, Perspex South Africa has been the market leader in the supply of acrylic and thermoplastic products, developing along the way a remarkable reputation as a proactive and innovative partner to companies including Jurgens and many others across different sectors. Tyrone Blommestijn, business manager for Perspex SA tells us about the background of the company, and outlines the valuable role that they play in enhancing the Jurgens product range. “We specialise in rigid substrates, the primary product range being Perspex cast acrylic as well as several other plastic and aluminium substrates that are used in automotive, engineering, shopfitting and signage” explains Blommestijn. “We’ve spent the last couple of years focussing on corporate branding specification where we assist corporates across various industries in selecting materials that are both fit for purpose and follow their corporate branding guidelines. We also offer a unique service that allows for accurate colour matching for consistency in corporate branding. “For over 20 years we’ve been supplying cast acrylic sheets to Jurgens through fabricators who convert our

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products into windows and cabinetry before being added to the Jurgens production line.” One of the many reasons that Jurgens work closely with Perspex, is because their cast acrylic products are lightweight but stronger than glass, which is very important in the manufacturing of caravans. The product is also specially tinted to match Jurgen’s specifications. The flexibility of the product allows it to be used in many other industries including marine, automotive and aviation. Close relationships with clients are incredibly important to Perspex, and help set them apart from other suppliers. They work to produce custom solutions to suit individual client needs and 60 years of market leading expertise means that Perspex add real value to a supply chain. Blommestijn further explains the partnership with Jurgens: “We’re currently working closely with Jurgens, focussing on the R&D of various product ranges to help them to reduce weight, improve technology and improve materials used in different components Our focus is about adding value, and finding innovative solutions to our clients.” www.perspex.co.za

BUSINESS PROFILE

as Salters explains. “In November last year we launched a new marketing campaign, dropping our direct brand advertising which had become increasingly necessary, given how well known we are, and pushed instead into something called 52 holidays a year, under the Campworld banner. Within this we are trying to get across the fact that everything people may require to enjoy this type of holiday can be found at Campworld, and then start talking about destinations and lifestyle activities that can be piggybacked off camping as a whole. Our strategy from a marketing point of view is to both claim new conquests and to cater for our existing customer base to ensure they return as repeat buyers.” The last twelve months have been punctuated by a number of key achievements, as Salters details. “We’ve seen a positive growth in caravan

sales,” he says of the period, “which has been largely driven by the marketing and putting in place lucrative dealer incentives. Our Howling Moon range of canvas tents has also seen us enter into a number of external markets, which has brought some good orders from America, as well as growth in both Australia and Europe. From a dealer perspective we have offered the Safari Centre franchise as a kind of ‘bolt-on’ operation for them, which is another effective way to earn money and has garnered positive results for those that have taken it on board.” As for the goals to define the rest of the year and 2016, many of Jurgens Ci’s plans centre around efficiency. “Obviously we are always looking to grow and look after the bottom line, but Australia is a great opportunity for us and we’ve had some very pleasing growth from what was a relatively small

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base, so it is key that we keep that momentum going. Our business here is the manufacture, in South Africa, of the majority of large components which go into a caravan which are then exported to Australia as a knock-down kit. On that side it is then assembled and then the furnishings are installed, as well as the electrical items which are procured locally. The intention is to grow that business to the same volume that we have here is South Africa, and if we get this right we will have about 10% of the market in Australia, which will provide us with our immediate term growth.” This success will also prove highly valuable to the business as a whole. “If we can grow our sales volumes on that side it will feed directly back into our South African operations, which would then allow us to expand significantly from a head count point of view.

JURGENS CI

//WE WILL OFFER AS MANY PRODUCTS AS POSSIBLE TO OUR MARKETS AND MAXIMISE EVERY OPPORTUNITY WE HAVE// We’ve also added the off-road products to our business and have acquired a distribution contract with TJM, probably the second biggest Australian off-road product company, and we are now the distributor for Souther Africa. We are keen to grow this business, which sees us deal in suspensions and other after-market equipment like bumpers, and all the other goodies people like to have on their 4x4s, and this is certainly a real opportunity to experience some nice growth. Something else which is on the radar now is our seeking avenues by which to get into countries north

of our border with the off-road trailer product and camping side of the business, places in which we don’t really participate at present.” With all of these expansion prospects in the pipeline for Jurgens Ci, Slaters makes clear that the focus moving forward remains very much on catering for the aspects of the business which have allowed it to experience such success to date. “Key for us is to look after the brand we already have established, the whole of which has been built primarily on the success of our three principal caravan types - Jurgens, Gypsy and Sprite, and to make sure that this products continue to offer good value for money, especially

given that we are renowned for the quality of our products. In essence, that is what keeps the wheel turning for us, and so we need to ensure that we don’t lose sight of the core. While we are venturing into these new aspects of the business that are somewhat different from our normal operations, these all need a channel through which to be marketed otherwise it can prove very difficult to launch them successfully. In this regard, we have very much taken a step back to identify our core business, and from there we will look to offer as many products as possible to these markets and thus maximise every opportunity we have.”

JURGENS CI 012 797 7300 www.campworld.co.za

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ADDAX

Sierra Leoneâ&#x20AC;&#x2122;s

Sustainable

Future

PRODUCTION: Timothy Reeder

Addax Bioenergy is one of three energy subsidiaries through which AOG Energy pursues a strategy of diversified investment. Since its foundation in 1987 it has been investing in energy, and has gone on to be regarded among the most agile, principled and adaptable firms in the sector. We take a look at its sugarcane-based renewable energy company, Addax Bioenergy, which started operations at a sustainable bioenergy project in Sierra Leone in 2014.

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ADDAX

It was a small team of ambitious energy professionals which brought AOG Energy into being in 1987, seeing the potential in Africa and harnessing its own experience, skills and capabilities to embrace local business cultures without compromising its core principles of fairness and equality. Starting in oil trading before quickly diversifying into oil storage and distribution in Sub-Saharan Africa, its pioneering bioenergy initiative Addax Bioenergy was launched in 2008 in Sierra Leone, and has since become a model for sustainable development in a region where this key. This project is taking place in Makeni, and will look to produce sustainable bio-ethanol from sugarcane, which will in turn be used in both the

export and domestic markets. Also to be produced is so-called ‘green’ electricity from a plant fuelled entirely by biomass, which will not only power the ethanol refinery but, crucially, also supply around 20 per cent of the national grid’s needs. The project area is situated approximately 15 kilometres west of the town of Makeni, in the Chiefdoms of Makari Gbanti and Bombali Shebora in the Bombali District and in the Chiefdom of Malal Mara in the Tonkolili District, in the Northern Province of Sierra Leone. Sugarcane has long been renowned as the most efficient and, perhaps most importantly, sustainable crop for biofuel production, making Sierra Leone a logical and natural choice of location for a project of this scope. Offering the ideal land, a tropical climate and much

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opportunity for future development, it offers all the most desired conditions for this initiative. The sugarcane estate employed by the project stands at nearly 10,000 hectares, with the crops planted in circular fields and watered by pivot irrigation. This method of planting sugar cane in smaller circular fields rather than in one big block, as is traditionally the case, means its impact on local livelihoods is greatly reduced and also allows much of the existing farmland and natural reserves to be preserved. Covering a further 4,300 hectares are the project’s factory and related infrastructure, as well as fields developed specially for rice farming and ecological conservation areas, which gives a total project area of around 14,300 hectares.

â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢ â&#x20AC;¢

BUSINESS PROFILE

Addax’s considered approach, which has included much dialogue with local communities and detailed investigations, has seen many potential sources of conflict averted, namely the protecting of biodiversity and existing farmland as well as allowing the project to steer clear of populated areas and thus avoid physical resettlement. Its work to date has seen Addax recognised by Olivier De Schutter, UN Special Rapporteur on the Right to Food, who, “commend[s] Addax Bioenergy for its impact studies and dialogue with the communities. This is a pilot project; if it fails, nothing will work.” The Makeni project, then, looks set to achieve a huge impact when fully operational in 2017, and will produce in the region of 85,000m3 of ethanol and around 100,000 MWh of renewable

power each year. Up to 15 MW of power will then be supplied to the national grid in Sierra Leone, significantly bolstering the overall electric power capacity of the country. The project has also garnered praise from H.E. Ernest BaiKoroma, President of the Republic of Sierra Leone, who spoke in glowing terms of how its successes have been achieved to date. “This unique project is not the result of charity from the more developed countries or from our development partners; Addax has undertaken this venture because they believe that their investment will be safe in this country,” he said. Illustrative of Addax’s commitment to the community in which it operates was the graduation in 2013 of a further 397 farmers under its Bioenergy Development Programme. This entails a 30-week training programme at one of

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the 50 Farmer Field and Life Schools the company has established as part of its Farmer Development Programme (FDP). The first FFLS participants graduated in February 2011, since joined by a further 1,838 farmers of whom more than half have been female. The Farmer Development programme, meanwhile, was launched in 2010 and is currently the largest food producing project in Sierra Leone, with Addax Bioenergy having mechanically prepared over 2,000 hectares of land as community fields for crop cultivation, removing food insecurity in the project area. 2013 was also the year in which the Makeni project became the first in Sierra Leone to be registered as a Clean Development Mechanism project of the United Nations Framework Convention on Climate Change. The mechanism came into being in February 2005 with

ADDAX

//THE PROJECT HAS TAKEN SIX YEARS OF INVESTMENT, COMMITMENT AND COOPERATION ON THE PART OF MANY STAKEHOLDERS TO DEVELOP THIS PIONEERING PROJECT// the aim of mitigating climate change, and this was an achievement noted by Simon Cleasby, CEO of Addax Bioenergy. ‘’This achievement underlines the pioneering nature of our project and our ambition to set a benchmark for sustainable bioenergy investment in Africa’’, he declared. “Electricity is essential for development and we are proud to provide a significant renewable supply in Sierra Leone.” The production of the first sugarcane bioethanol and renewable electricity at the facility was announced in May last year, with

Simon Cleasby remarking on this proud moment for Addax Bioenergy, as well as for the people of Bombali and Tonkolili Districts. “The project has taken six years of investment, commitment and cooperation on the part of many stakeholders to develop this pioneering project, which demonstrates the potential of Sierra Leone and its people,” he said. Already having brought significant local improvements, over 2,700 people are currently employed in some capacity by the project, while the production of power will reduce

greenhouse gas emissions by 56,000 tCO2 each year through replacing fossil fuel-intensive energy. Sierra Leone’s Minister of Agriculture, Dr. Joseph Sam Sesay, observed: “The success of Addax Bioenergy represents a major breakthrough in Sierra Leone’s efforts to become a hub for renewable (bio) energy alternatives. The project has already brought multiple benefits to thousands of people in and around Makeni and also to Sierra Leone as a whole. A truly virtuous circle of sustainable development is emerging in Sierra Leone.”

ADDAX info@addaxbioenergy.com www.addaxbioenergy.com

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SASRIA

Protecting South Africa Against Extraordinary Risks PRODUCTION: Timothy Reeder

Having celebrated 35 years of protecting the countryâ&#x20AC;&#x2122;s assets in 2014, Sasriaâ&#x20AC;&#x2122;s core business is the provision of short-term insurance for riots, strikes, terrorism, civil commotion and public disorder to a range of corporate and individual policyholders. Its customer based is made up of all sectors of the economy and includes listed companies, public companies and small SMEs, though to state-owned companies and private individuals.

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BUSINESS PROFILE

The South African Special Risk Insurance Associationâ&#x20AC;&#x2122;s (Sasriaâ&#x20AC;&#x2122;s) formation in 1979 came as a direct result of a reluctance on the part of the South African short-term insurance industry to provide insurance cover specifically for political risks. It was in fact this very reluctance which provided an opening in the short-term insurance market, in turn prompting the South African government to approach the South African Insurance Association (SAIA) regarding the feasibility of establishing a separate institution to provide insurance cover for these incidents. Sasria was then formed as a Section 21 company, the then South African Special Risk Insurance Association (SASRIA), to provide insurance for politically motivated acts, political riots and terrorism. The cover that Sasria provided was subsequently extended

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SASRIA

//THE NATURE OF OUR BUSINESS IS THAT THE RISKS ARE UNPREDICTABLE AND HAVE BIG IMPACTS// norm, and include any act directed to overthrow the a local, provincial, national or tribal authority government through fear, violence or terrorism, as well as the bringing about of damage in order to achieve political, social or economic change, or as a form of protest against any Government or, simply, for the purpose of inspiring fear in the public. Sasria is also equipped to cover for any form of riot, strike or public disorder, any attempt to perform any of these acts, and the action taken by a authorities to control or prevent these from occurring. Sasria is the only insurer in South Africa qualified to provide such cover for the damage caused during these kinds of incidents. Service delivery

039 DCUNITED

in 1998 to include such non-political occurrences as strikes and labour disturbances. Sasria is today wholly owned by the state, a short-term insurance company which reports to the National Treasury. As it is a state-owned company, Sasria’s specific strategic mandate sets out its principal objectives, namely to provide special perils cover for damage caused both by events listed in the Reinsurance of Damage and Losses Act 56 of 1989 and any others deemed necessary by Sasria, and to research and investigate potential future coverage for any special peril of national interest. The nature of the mandate allows Sasria to provide cover differing somewhat from the

protests and violent strikes are certainly two things of which one unfortunately must be mindful in this day and age, and Head of Dialdirect Insurance, Warwick Scott-Rodger, explains why Sasria’s policies are so important when it comes to covering damage caused by these actions. “Because of the unpredictable and often chaotic nature of these incidents, both private and public property can suffer expensive damage. It is for this reason that we encourage people to ensure that Sasria cover is included on their insurance policies so that they are covered should the matter affect them personally. If they’re not properly covered, their insurance company might reject claims for damage or loss incurred during a strike, civil unrest or protest.” This unpredictability is exactly why individuals must verify with their insurance companies that Sasria cover

As one of Southern Africa’s leading Construction and Engineering Underwriting Managers, we offer cover for the following classes of insurance: • Contractors All Risks (CAR) • Erection All Risks (EAR) • Plant All Risks (PAR) • Public Liability (PL) Insurance • Electronic Equipment (EEI) • Machinery Breakdown (MB) • Business Interruption (BI) • Deterioration of Stock (DOS)

TRUSTED ENGINEERING INSURANCE

For more information contact us Johannesburg; Unit 29, Consort House, Waterford Office Park, Fourways, 2055, Tel: +27 11 658 1156 Cape Town; Shop A1, Office 4, Westlake Square, 1 Westlake Drive, Tokai, 7945, Tel: +27 21 030 0054 United Kingdom; 1 The Hornets, Horsham, West Sussex, RH13 5RE, Tel: +44 7467 492586 Consort Technical Underwriting Managers (Pty) Ltd (Reg. No.: 1999/003909/07) is an Authorised Financial Services Provider (FSP No. 2273), and underwrites on behalf of Lombard Insurance Company Limited.

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SASRIA

is, in fact, included on their premiums, with the cover applicable to personal property such as vehicles, homes and household contents, as well as commercial and government property. With such an holistic range of special insurance offerings, the present time is a particularly valid period for a company as astute in its operations as Sasria, with strike-related damages at an all-time high as recently as October 2013. It was a year which saw Sasria record the largest insurance claim ever to hit its books - a R70-million claim for a warehouse that was damaged during the farmworker strikes in the Western Cape - along with a spike in both the severity and frequency of claims due largely to protracted labour action. Sasria’s managing director, Cedric Masondo, spoke at the time of what had been a steady increase in claims since 2010 related to service delivery protests and strikes, although the majority of these — about 80% — were due to labour action. “The employees are

angry,” he said. “It is still too early to say this is a trend but we are worried at the increases.” Other large claims received came from strikes that took place at the Medupi power station construction site, amounting to around R10-million in total. Increases in claims also came from the mining sector, an industry which historically has seen a high number of strikes, but over the period they occurred in increasingly disorganised and protracted manners, with Masondo also remarking on a noticeable increase in the number of unprotected strikes. Also concerning was his noting that during the year, strikes extended beyond the usual “strike season” of April to September, with the company receiving claims well into November and even as late as January. The severity of claims increased both because of inflation and also because of the size of the claims themselves. “The nature of our business is that the risks are unpredictable and have big impacts,”

//STANDARD BANK UPDATE YOUR SHORT-TERM INSURANCE AND SAVE SOME CASH Just like taking your car to your dealer for a service or visiting your dentist once a year to check that everything is still in order, you might also want to consider revising your investment, banking and insurance portfolios. Johan van Greuning, Head of Standard Insurance Limited, says, “While having all the right financial solutions in your portfolio is a big step towards achieving a healthy financial plan, you need to be proactive about managing it. Mid-year is the ideal time to do this, as each year your needs and circumstances change and your portfolio should reflect those changes.” Communication between you and your financial adviser or broker should always be frequent so you are aware of the progress your policies are making, the benefits you are getting or if your policies are working properly for you.” If there have been any changes in your life that may affect your policies, it is important to make your broker

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or advisor aware. “Many people don’t realise that even a simple change of address or occupation can affect their car insurance premiums or home cover, or how the purchase of a big-ticket item will affect a household contents insurance premium,” says Mr van Greuning. “Fine-tuning your finances will not only keep you on track with your investments, it will also save you money and ensure that your insurance policies remain valid and current,” says Mr van Greuning. “Likewise, it’s worthwhile looking at your bank accounts and habits in general. Banking needs change as you earn more money, so it would be beneficial to chat to your bank or a financial consultant to ensure you have the right mix of financial solutions. Though this may take up a little more of your time, the peace of mind it brings is well worth the investment,” concludes Mr van Greuning. www.standardbank.co.za

Moving Forward

BUSINESS PROFILE

Masondo said, with all of these events serving to prove that Sasria has an important role to play in ensuring futures throughout the country. With the recognition that it operates not in isolation, but firmly as part of a community, Sasriaâ&#x20AC;&#x2122;s duty to promote opportunities geared toward social and economic development in the community in which it operates is at the heart of the business. At the core of Sasriaâ&#x20AC;&#x2122;s sustainability is its commitment to contributing 1% of its after tax profit to Socially Responsible projects, an undertaking which has been in place for the past eight years, and which was upped in the 2010 financial year to 2%. Alongside this, Sasria actively seeks to strengthen not only the insurance industry, but the

financial sector and the country as a whole, through its CSI initiatives. Central to these initiatives is Sasriaâ&#x20AC;&#x2122;s wish to contribute to the national development of skills, and subsequently address the skills shortage in the country, as identified by the government. To this end, Sasria established an actuarial development program in 2003, The South African Actuaries Development Program (SAADP). The program aims to unearth and harness potentially unrecognised mathematical and analytical skills of black students, to help them pursue career opportunities in the field of Actuarial Science. To date Sasria has seen 109 students graduate,13 of which have qualified as actuaries, with all graduates in full time employment within the financial sector.

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As a company Sasria is completely self-funding, meaning that its income is generated entirely from its premiums, and it is this money which is then used to pay out in the case of any claims or expenses. Additionally, the company is responsible for ensuring that adequate capital is available to cover major catastrophic losses should they occur, meaning that the country is in safe hands even if the unimaginable should strike. The cover that Sasria provides can be obtained through a vast network of authorised nonmandated intermediaries, or NMI, or alternatively via underlying insurers, as Sasria does not do business directly with its customers itself. As such, the NMI handles the day-to-day administration of the business and acts as a vehicle

SASRIA

//WHEN LARGE STRIKES HAPPEN, IT CREATES AWARENESS// to collect premiums on Sasria’s behalf, meaning that Sasria’s customer base is closely linked to that of its distribution channel. It is a business model that has enabled Sasria to continue operating at relatively low costs, in turn ensuring that the cover it offers can be done so at affordable premiums. This business model has been largely responsible for the organisation’s success over the past 35 years, and has paved the way toward notable profit increases last year in spite of a fivemonth work stoppage in the platinum sector. The number of claims for the 2014

financial year decreased by 32% from the 2013 figure, down to 1,525 from 2,233 in the previous year, while Sasria also managed to increase its earnings, with net profit before tax increasing from R482-million to R944-million. While several claims relating to the platinum strike were filed, most of these dealt with looting rather than the destruction of property. “Despite the platinum strike being so long, it wasn’t as bad as we anticipated,” said Cedric Masondo. “There was a lot of media hype around the strike but it wasn’t too violent.” Sasria’s recent success can be attributed rather equally,

explains Masondo, to a combination of the labour environment and significant marketing efforts. “When large strikes happen, it creates that awareness. Companies start questioning whether they are adequately covered, and it was our marketing efforts supported that awareness.” It is Sasria’s innovation and relevance which will allow it to continue to build a sustainable, vibrant business which has the interests of the country at heart.

SASRIA +27 11 214 0800 contactus@sasria.co.za www.sasria.co.za

www.enterprise-africa.net / August 2015 / 45

UKHUNI BUSINESS FURNITURE

Sitting Pretty at the Desk

of Success

PRODUCTION: Emily Ayson

Founded in 1993 by Norman and Michael Stein, Ukhuni have constantly striven to cater their wares to the diverse needs of office-based businesses, designing, manufacturing, delivering and installing a range of innovative, bespoke office furniture and fixtures. To find out how the company are managing in a difficult economic climate and how they aim to grow the business, Enterprise Africa talks to director Michael Stein.

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BUSINESS PROFILE

For Michael Stein, beneath the cold bureaucracy of sales, figures and margins, the key tenet underlying the operations of Ukhuni is that ‘If you do the right thing, the business will take care of itself’. By creating a company that strives to deliver impeccable quality and service, is dedicated to safe and sustainable manufacture, staff development and customer satisfaction, the Ukhuni brand is steadfastly becoming discernibly recognisable in terms of both market presence and reputation. In his own words, Mr Stein states that ‘the more [customers] enjoy dealing with us, the more they will talk about us and keep dealing with us’ and it certainly seems that clients are beginning to flock to Ukhuni. In the last twelve months alone Ukhuni have achieved several unprecedented sales successes. The desking and seating side of the business soared by an incredible 15%, with the company putting out 20,000 individual units. Eighteen

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UKHUNI BUSINESS FURNITURE

//THE DESKING AND SEATING SIDE OF THE BUSINESS SOARED BY AN INCREDIBLE 15%// months ago, Ukhuni also added office walling solutions to their product line, with this brand new source of income bringing in revenue equating to 8% of the company’s total turnover. Venturing beyond the borders of South Africa, 10% of their revenue stream in 2014 came from the rest of Africa, with a notable deal being struck with Standard Chartered Bank in Nigeria to furnish their office space. However, akin to all other businesses currently operating in South Africa and indeed the rest of the world, the last few years have presented numerous challenges for Ukhuni. Mr Stein particularly notes how the volatility of the global economy and poor exchange rates have led to many office-based companies striving to conserve their funds, with investment in brand new office furniture and fixtures becoming a low priority. Furthermore, the widespread use of flat screen devices which use minimal space has resulted in a swift return to basic rectangular shaped desks. As such, the call for innovative or bespoke office furniture has waned and opportunities for project differentiation have become increasingly more risky. Factor in the surge of companies capitalising on an opportunity by offering bottom-linepriced goods, the levels of competition and uncertainty in the office furniture market is undeniably palpable. Yet, unperturbed by the difficulties induced by the economy, Mr Stein divulges that the secret to ensuring the future success of Ukhuni is that ‘You’ve got to show up every day, you’ve got to be at it every single day, good or bad, disappointed or excited, you’ve got to show up and be there for your people and look after your suppliers and be there for your clients. Day in, day out – there’s just no days off’. He notes how

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UKHUNI BUSINESS FURNITURE

//MR STEIN BELIEVES THAT HE REALLY NEEDS TO INJECT SOME ‘SEX APPEAL’ INTO UKHUNI’S GOODS TO DIFFERENTIATE THEM WITHIN THE MARKET// even as a start-up business with no cash flow, he and his colleagues continued to come to work, labouring away to build the company into what it is today. Evidently, job dedication and time input are paramount to the company, but Mr Stein’s statement here also alludes to the genuine integrity with which he conducts his business. He goes on to state that ‘the more things we do right, the better it is for everyone in the chain’, attesting to how Ukhuni endeavour to be the best they can be in all aspects of the business. For one, individuality is of high important to Ukhuni, as they staunchly stake their reputation on complete South African originality. Yet, there

are still some ways that the company tries to match those around them, particularly when it comes to selling in a market that is saturated with often interchangeable brands, goods and services. Mr Stein has clear ambitions to contend within the global market and he is constantly observing the behaviours of other international companies so that he may steer his company towards their strategies and standards. Specifically, he notes how contemporarily, there is a direct crossover between lifestyle, fashion and design and so products have to inevitably stand out as attractive to the modern day consumer. Thus, as the old adage goes, ‘sex sells’ and so Mr Stein

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believes that he really needs to inject some ‘sex appeal’ into Ukhuni’s goods to differentiate them within the market. Consequently, the development of new products and the manipulation and redesign of existing products is a daily feat for Ukhuni, a challenge they clearly relish. For example, on the design side, Ukhuni take great pride in educating themselves on the exact rationale of how and why their products will benefit and empower their clients. Working with architectural professionals and interior designers, the company are able to completely tailor furnishings to compliment and enhance the environment they will be placed in. Furthermore, Ukhuni have utilised research by Gensler regarding the different types of space that encourage staff productivity, concentration and well-being, so they can even advise on the more psychological aspects of office-furnishing. Mr Stein also discussed with us how he has identified

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UKHUNI BUSINESS FURNITURE

apertures within the office furniture market that Ukhuni can breach through innovative design, particularly noting how in the contemporary era, we are â&#x20AC;&#x2DC;a mobile populationâ&#x20AC;&#x2122;, demanding constant and reliable access to smart devices, power and wireless internet connections. As such, he hopes to converge technology and office furniture, creating the ultimate work station hub that is both aesthetic and functional; computer desks with built in computer screens, electricity outputs and wireless internet. To produce these astounding pieces and a range of others, Ukhuni will make use of their 8 specialised machines which are calibrated daily for perfect accuracy. In turn, the staff operating these are highly trained and provided opportunities to receive ongoing training throughout their careers. Currently with 350 employees

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BUSINESS PROFILE

(this number was around 280 this time last year), the average tenure at Ukhuni is 10 years, with a mere 1% in staff turnover occurring per annum. Just recently a young black woman was promoted to the seating department head, with Mr Stein proudly stating that although the company is dedicated to black empowerment, her success was not politically motivated, but rather borne out of her sheer commitment and ambition. Ukhuni have also implemented a specialised staff transport system in which employees can effectively carpool together, saving on travelling fees and reducing the frustrations that can come along with commuting. As such, Mr Stein actively fosters and environment in which those in his employ can go home after work with a sense of pride and

achievement, stating that ‘you want to be in bed with people who you can trust and who’ve got your back’ – with the company definitely living up to this ideal. In further discussing his high staff retention rate and their longstanding work dedication, Mr Stein wonderfully asserts that ‘You can fool a customer once, but you certainly couldn’t fool your staff day in day out for 10 years’, showcasing his true intentions of looking after all those in his workforce. Of further importance to the production process is the company’s attention to sustainable manufacture; Ukhuni have established their own recycling company, Thusong, which they also allow other local businesses to use. They have also upgraded their systems to reduce their usage of electricity, water and compressed air by 15%.

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Of course, a huge faction of customer satisfaction derives from the production of quality goods, but Ukhuni are also dedicated to ensuring that clients will always receive their orders in as small a time frame as possible. At any given time, the company hold R14,000,000 worth of raw material and unfinished product in their warehouses, with raw materials only ever being sourced from accredited or branded suppliers to ensure continuity of quality. Their factory and warehouse are also equipped with generators in case of power outages and an estimated R300,000 is invested every year to ensure compliance with industry and government legislation that is in place to minimise risks in the workplace. Finally, Ukhuni also have their own fleet of trucks for both local and long haul

UKHUNI BUSINESS FURNITURE

//IF YOU DO THE RIGHT THING, THE BUSINESS WILL TAKE CARE OF ITSELF// deliveries so as to minimise reliance on third party courier services. Evidently, the current procedures and processes within Ukhuni are propelling the business towards success, but what of the future? Mr Stein already has his sights set on the horizon, and is looking to heavily invest in showroom maintenance, intense marketing and social media use and improved logistical services. Since the beginning of 2015, Ukhuni have also been developing a completely new product range, the exact details of which Mr Stein is not yet ready to divulge. As of now, the new wares are undergoing final prototyping

and tooling, which will take the best part of 2 â&#x20AC;&#x201C; 3 months and the new range will debut in February 2016. He also hopes to continue to grow the business across the whole of Africa, as the advent of a growing middle class constitutes consumers with more disposable income and more complex, modern demands and requirements for their lifestyles and businesses. Furthermore, Mr Stein details that the company have an emerging presence in some European countries such as Switzerland and Germany and are also currently in the preparation stages of negotiating with a large European bank for the

export of their branch furniture. Consequently, the future for Ukhuni looks nothing but bright. Director Michael Stein has a true passion for what he does and a genuine care for both his workforce and his customers. With adventurous plans in place to secure their future success and a strong dedication to staying at the top of their game, the company truly are sitting pretty at the desk of success.

UKHUNI BUSINESS FURNITURE +27 11 887 9243 info@ukhuni.co.za www.ukhuni.co.za

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AVENG MANUFACTURING DFC

Joining Forces in

Valve Production PRODUCTION: Timothy Reeder

The founding in 2001 of Dynamic Fluid Control Pty Ltd brought together seven of the most well known and established brands in the local and international valve industry. Some of these date way back to 1958, and under its new name DFC seeks to continue the central traditions of excellence in production, service and technical support that characterise both the individual brands and the company as a whole.

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BUSINESS PROFILE

AVENG MANUFACTURING DFC

There are many similarities in the original brands under Aveng Manufacturing DFC’s stewardship, recognition of which has resulted in the firm splitting its services and products to focus on its two principal markets: water and mining. DFC Water and DFC Mining and Industrial respectively are the two resulting entities, and both act as the marketing, service and research and development arms of Dynamic Fluid Control. Each of these pair is both managed and serviced by a highly dedicated team, one which places a keen focus on customer satisfaction and the selling of effective solutions. The valve manufacturing unit has had firmly established roots in the valve business dating back to its founding by Blakeborough Valves, a UK company, in 1948. At this time the primary manufacturing concerns were of gate, reflux and equilibrium float valves, however, the inevitable addition over the years of various products to its portfolio eventually resulted in the company’s dual specialisms in the Water and Mining industries, and the eventual formation of what we now know as Dynamic Fluid Control (PTY) LTD. From these inauspicious beginnings DFC now boasts the largest valve manufacturing facility in Southern Africa. Its established facilities in the USA, Europe and Australia, allows DFC to serve the global mining and water markets, via its team of 3,600 employees and its 18 factories across Africa. Aveng Manufacturing itself manufactures and supplies concrete products to the construction sector, and provides services and engineered solutions to clients in markets from mining, water, oil

//WE PROVIDE TECHNICAL ADVICE ON THE CORRECT VALVE FOR ANY APPLICATION FREE OF CHARGE//

and gas through to construction, as well as rail construction and maintenance services to the transport sector. Alongside DFC the group also includes comprises Aveng Manufacturing Infraset, Aveng Manufacturing Duraset and Aveng Manufacturing Lennings Rail Service. Although the group’s origins unquestionably lie in modest construction projects, it is now placed to offer expertise in the full range of services, including steel, engineering, manufacturing, mining, concessions, public infrastructure and water treatment. As this South African consortium continues to establish itself worldwide, the group achieved solid revenue growth of 13% to R3,5 billion as well as much improvement in operating earnings for the previous financial year, a 26% rise to R227 million. This was in large part due to the award of major construction, maintenance and materials supply contracts for railway projects in South Africa, Mozambique and Zambia, and was bolstered by ongoing construction products in South Africa. In the key areas of construction products and rail construction and maintenance, the group’s Aveng Manufacturing Infraset arm benefited from pursuing significant opportunities in South Africa and Southern Africa, increasing its supply of both concrete sleepers and pipes to rail projects. Among its most notable achievements were the 58,000 sleepers delivered by its newly constructed factory in Tete, Mozambique to the Nacala Section 2 Railway Project, as well as a further 140,000 sleepers from its Brakpan factory to Zambian Railways. Aveng Manufacturing placed significant focus on expanding its capacity in the rest of Africa over the course of the year, embodied by this new factory in Tete which commenced operations in March 2014, and which is now well placed to capitalise on other opportunities in the coal mining and related infrastructure developments, both in Tete province

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BUSINESS PROFILE

and further afield in East Africa. While the group also operates a factory in Swaziland, it is considering further expansion of its Zambian factory to accommodate increasing demand from Zambian Railways. Dynamic Fluid Control was able to use this ever increasing global footprint to good effect, seeing a 9% growth in its annual revenue to R427 million. Higher international sales volumes in the USA and Finland brought about such success, while the weaker rand helped to mitigate what were softer mining and water markets in South Africa and Australia. It also entered into longterm contracts with two major market players - Tsurumi, a Japanese supplier of water pumps and Clay-val, a European supplier of large water valves - which will see DFC supply both companyâ&#x20AC;&#x2122;s products to the rest of Africa. Growing its presence in international markets has been at the forefront of DFCâ&#x20AC;&#x2122;s operations in recent

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AVENG MANUFACTURING DFC

//DFC MANUFACTURES A PRODUCT THAT IS GOING TO OUTPERFORM RATHER THAN UNDERPRICE// years, and it currently trades in North and South America, Europe, Russia and the Middle East. Supply agreements with these international water pump and large valve suppliers will help greatly in diversifying DFCâ&#x20AC;&#x2122;s extensive product range yet further, while the newly acquired Atval will also give DFC access to the high-pressure knife gate valve markets in Africa, Europe, and North and South America. Meanwhile, the US arm of DFCâ&#x20AC;&#x2122;s operations is seeking to pursue opportunities to expand into Latin America, Canada and Russia, further strengthening its position in the global markets. It speaks volumes of the DFC approach that, this far down the

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BUSINESS PROFILE

line from its founding, it is still able to meet the requirements of what are the harshest valve operating environments in Africa. DFC mining division executive director Pat Stander explains that this is largely down to the fact that, “we provide technical advice on the correct valve for any application free of charge,” not needing to look to Australia, South America or even the Far East for valves, “because we make them closer to home, here in South Africa”. DFC has three main valve ranges for mining applications: Saunders, Insamcor and RF Valves, with each of these three core brands using local components, such as rubber linings, produced in DFC’s own rubber plant. These are

linings that DFC has developed over several years for different applications, resulting in a far more durable end product. “DFC manufactures a product that is going to outperform rather than underprice,” states Stander, “delivering the lowest lifetime cost to the customer rather than the lowest initial purchase price.” The new team at Aveng

Manufacturing DFC comprises individuals with specialist skills across the water, effluent and mineral processing sectors, and is focussed now on expanding the business across the African continent. DFC’s innovative and sustainable infrastructure management solutions focus on improving plant efficiencies, and mean that it remains the leading local provider,

//DFC MANUFACTURES A PRODUCT THAT IS GOING TO OUTPERFORM RATHER THAN UNDERPRICE, DELIVERING THE LOWEST LIFETIME COST TO THE CUSTOMER RATHER THAN THE LOWEST INITIAL PURCHASE PRICE//

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AVENG MANUFACTURING DFC

//THE NEW TEAM AT AVENG MANUFACTURING DFC COMPRISES INDIVIDUALS WITH SPECIALIST SKILLS ACROSS THE WATER, EFFLUENT AND MINERAL PROCESSING SECTORS, AND IS FOCUSSED NOW ON EXPANDING THE BUSINESS ACROSS THE AFRICAN CONTINENT// manufacturer and supplier of valves and pumps in its chosen industries. With water resource management among the most significant global challenges of the 21st century, the situation in South Africa is particularly complex. This is a semi-arid country with low rainfall, limited underground

aquifers, and a heavy reliance on water transfers from other nations, and thus DFC’s focus on reducing costs and energy usage for customers and improving and securing an efficient and uninterrupted water supply becomes ever more crucial. DFC’s commitment to supporting the

local community as it does this runs throughout the business. As a local leader it creates jobs in South Africa and supports local foundries and other industries, as well as buying locally. Its 60 years of honing its craft is now centred around its 100% owned rubber processing facility, developed over, offering a peerless selling proposition moving into its next stages.

AVENG MANUFACTURING DFC +27 11 748 0200 info@avengman.com www.avengman.com/dfc

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NANDO’S SOUTH AFRICA

Building a Global Chicken Empire PRODUCTION: Timothy Reeder

Now a ubiquitous sight in 35 countries across the world, the Nando’s story began hundreds of years ago, with Portuguese explorers setting sail for the East in search of adventure and the legendary spice route. It was in Africa they discovered the now legendary PERi-PERi, or African Bird’s Eye Chilli, forming the basis hundreds of years later of Nando’s extensive product range and leading to its worldwide presence via restaurants, grocery ranges and these notoriously addictive sauces.

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BUSINESS PROFILE

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NANDO’S SOUTH AFRICA

Body Nando’s as it stands today was founded in 1987 in the Johannesburg mining suburb of Rosettenville. The idea behind this gastronomic heavyweight was conjured up by two colleagues, Fernando Duarte and Robert Brozin when the former, a Portuguese-born audio engineer, took his entrepreneur friend Brozin for a meal at Portuguese takeaway Chickenland. The purpose behind the visit was primarily for Brozin to try the peri peri-cooked chicken on offer there, and it had the desired effect. The chilli sauce, originating in Mozambique, was inspirational enough to convince the duo to purchase the restaurant for around R354,000 and lend it its now inescapable name, a truncated version of Duarte’s own. This single original restaurant was quickly added to and after two years had been joined by a further three in Johannesburg, as well as one in Portugal. Today, Nando’s boasts over 1000 branches in 35 countries the world over, employing over 30,000 people in the process. It has been a meteoric rise, with Advertising Age magazine naming Nando’s as one of the world’s top 30 hottest marketing brands in 2010, while eDigitalResearch last year crowned it the most engaging food brand on Twitter in the UK. Nando’s is widely considered to be South Africa’s most successful food franchise, and it occupies the sixth spot in the league of fast food popularity in its home country, only behind such giants of the game as KFC, Steers and Wimpy. The Nando’s legacy is of course based primarily around its variations of sauces crafted with peri peri, or African Bird’s Eye Chilli, a small member of the Capsicum genus which grows in such countries as Angola, Uganda, Malawi, South Africa, Ghana, as well as the

//NANDO’S DELIVERS ITS PRODUCT IMAGINATIVELY, WITH GREAT FUN AND AT A VERY GOOD PRICE//

tropical forests of South Sudan and the highlands of Ethiopia. Derived from the Swahili word for ‘pepper pepper’, the sauce, Portuguese in origin, is traditionally made from a combination of crushed chillies, citrus peel, onion, pepper, salt, lemon juice, bay leaves, paprika, pimiento, basil, oregano and tarragon. Peri peri is at the very heart of what Nando’s does, as well as the cornerstone of its restaurants worldwide, and such is its enduring popularity that Nando’s sauces and products still follow the unique recipe of the first ever peri peri sauce dreamed up by Nando’s forefathers, way back in the 15th century. Nando’s own peri-peri is uniquely African, and this is largely down to the ‘terroir’ in which it is grown. Loosely meaning soil, only the terroir of south-east Africa can produce the PERi-PERi native to this particular part of the world. The effect of the terroir is considerable, and means that an African Bird’s Eye Chilli seed planted in, say, South America, would have a completely different taste to those used by Nando’s, due simply to the vast difference in terroirs at the two locations. The company strives for the height of quality in its PERi-PERi sauces, keeping them free from artificial preservatives and colourants and ensuring that they are free of both added MSG and Gluten. So passionate is Nando’s about PERi-PERi that it is the world’s biggest consumer of the Bird’s Eye Chilli, and as a result sources all its chillies in an ethical, sustainable manner, to ensure its continued availability. It is for this signature peri-peri marinated chicken that Nando’s AfroPortuguese-themed, quick-service restaurants have come to be known. Peter Backman, managing director at Horizons, a London-based food service consultancy, spoke of Nando’s continuing universal appeal. “Nando’s has done really well because the whole concept is based around a very simple product which everyone understands,” he explained. “They deliver this product

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NANDO’S SOUTH AFRICA

//NANDO’S IS THE MUST-HAVE BRAND FOR NEW DEVELOPMENTS//

imaginatively, with great fun and at a very good price.” The ‘fast casual’ approach to restaurant dining, of which Nando’s is perhaps the leading example, is one of the fastest growing sectors in the food industry. It tends to be based around briefer menus and offer a more healthy selection of food, which more often than not can be seen being freshly prepared on the premises. Positioned on the scale between fast-food and causal dining, it is a concept whereby consumers can be confident of receiving a higher quality of food, with fewer frozen or processed ingredients than its less expensive counterparts. When the first UK branches of Nando’s opened in 1992, the business did not enjoy immediately the success

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it has come to know today. Its initial foray was based largely around the South African formula of takeaway food, an area of the market saturated to the extent that it struggled to have any impact on London diners. Nando’s Chairman Dick Enthoven thus put his son Robert in charge of remedying the faltering restaurants, in Ealing and Earl’s Court, and his shifting the emphasis from takeaways to what is known as a ‘mixed service’ model proved a masterstroke. This is the familiar Nando’s formula we still see in the present, whereby customers are allocated a table, order at a counter and collect their own cutlery before the food is brought to the table by servers. It was Robert Enthoven too who

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NANDO’S SOUTH AFRICA

had the idea of instilling individuality in the design and decor of each outlet, in order to avoid the uniformity commonly associated with such a chain. This has all combined to provide a highly successful formula, with the number of Nando’s branches in the UK rising from 29 in 2011 to 114 in the space of just four years. The 300th was opened in Trowbridge, Wiltshire, in 2013. Also largely responsible for this success, according to Horizons’ Backman, is location - it is rare to find a busy street or shopping centre in the country without a Nando’s. “They’ve become the anchor site for new developments,” he said. “Nando’s is the must-have brand to be in there.” Dick Enthoven had a significant

influence in catalysing the business in its initial stages, giving Brozin and ‘Nando’ Duarte a loan to allow expansion of their chain of chicken restaurants in the early 1990s. The son of an insurance magnate, he today owns more than 320 Nando’s outlets in the U.K. It is principally for the Enthovens’ involvement that the company believes that, “at its heart Nando’s is a private family business,” according to a Nando’s U.K. spokeswoman. “The principal backers in Nando’s, shortly after its founding, are the Enthoven family who have provided private capital and significant business know-how to grow the business in South Africa and globally.” Enthoven shares ownership of Nando’s international businesses,

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//AT ITS HEART NANDO’S IS A PRIVATE FAMILY BUSINESS//

BUSINESS PROFILE

comprising a combination of companyowned and franchised restaurants, with Duarte and Brozin. While not involved in Nando’s day-to-day running, his influence is reflected in the restaurants’ decor, as he has hired a curator to build Nando’s very own art collection. Altogether, the U.K. restaurants showcase 5,000 pieces of South African art, with Enthoven explaining, “I never buy anything with the view of selling it or to invest in it,” in a 2010 interview with Johannesburg-based newspaper Business Day. “I buy it because I enjoy it, because it is important to have it.” Chicken remains the strongest of all the fast-food categories in South Africa, and to reflect this Euromonitor International research remarks that its value is currently in the region of R11.43 billion.The Nando’s brand,

universally recognised as one of South Africa’s most famous exports and enjoying a presence in 30 countries worldwide, is now set to embark on a major revamp and relocation programme in its South African branches, as it adds more outlets to the 300-plus it already holds locally. As its primary banker, Nedbank recently granted a R320m borrowing facility to Nando’s, whose Southern Africa CEO Geoff Whyte explained that, “in South Africa, we’re opening around 20 (new

stores) a year and we have a major relocation and revamp programme that will add larger, more beautiful stores.” Nando’s international restaurants tend to offer very similar menu items across the board, although they are larger, with two thirds of these franchised and the rest company owned. In the rest of Africa Nando’s has operations in Namibia, Botswana, Zimbabwe and Zambia, and Whyte went on to give an idea of the extent of the progress continually being made in

//WE’RE OPENING AROUND 20 (NEW STORES) A YEAR AND WE HAVE A MAJOR RELOCATION AND REVAMP PROGRAMME//

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NANDO’S SOUTH AFRICA

//OUR OVERSEAS TEAMS HAVE BEEN BLOWN AWAY BY THE QUALITY OF WORK SOUTH AFRICANS ARE MANUFACTURING// its international footprint. ”We have done very well in the UK,” he stated, “we have more chains there than in SA. Also, we’re approaching 300 stores in Australia while in the US, we just expanded into Chicago.” Its unique style and identity remain at the forefront of what Nando’s does, and this is to be reflected even more prominently moving forward in what is something of an unprecedented move for a homegrown brand. It is seeking to give its backing

to local design, initiating a programme to include South African furniture and products in its restaurants across the globe. With some of these as far afield as the US, Australia and Dubai, it could have huge implications for the entire design and furniture production industries in South Africa. Nando’s CEO Geoff Whyte added: “Our overseas teams have been blown away by the quality of work South Africans are manufacturing. Hopefully this creates an international opportunity

for them.” Founder Robbie Brozin summed up how this collaboration between the parties will move Nando’s into a new era: “This design initiative is a culmination of nearly 28 years of building a brand that stands for the best that Africa can offer. It moves us into another era, where we can take designers, manufacturers, artists and those whose creative and intellectual capital express this common vision of ours, on a most exciting adventure.”

NANDO’S SOUTH AFRICA 0860 113 332 info@nandos.co.za www.nandos.co.za

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DARK FIBRE AFRICA

Connect and Conquer PRODUCTION: Emily Ayson

Over the past seven years as one of South Africa’s leading providers of telecommunication cables, Dark Fibre Africa has grown significantly. With their open access business model allowing small and large businesses alike to connect to high speed, reliable and affordable fibre optic internet, the company strives to provide an environment that encourages and facilitates the growth and development of South African businesses, the economy and technological innovation.

Throughout the world, technological evolution is transpiring at an unprecedented rate. We have come to expect ubiquitous, high-speed wireless internet and access to the technologies that allow us surf the web for pleasure, leisure or business. In this respect, South Africa is no different; as the economy and infrastructure of this magnificent country flourish, the demand for products and services that we in the western world often take for granted is creating a vibrant and competitive market. In 2006, the monopoly of the communications field was overthrown, resulting in advent of numerous new companies looking to bring internet to the masses. Dark Fibre Africa (DFA) is one such enterprise, diligently working to provide a fast, reliable and affordable fibre network throughout South Africa. DFA began their operations in October 2007 and since then have invested over R5 billion to install 8000km of fibre infrastructure to transmit metro and long haul telecommunications traffic. Through leasing out space on their lines to a full spectrum of businesses, bodies and organisations, DFA customers avoid the exorbitant start up expenditure of constructing their own networks and also avoid the sometimes

awkward bureaucracy of gaining their line supply from their competitors. Chief Strategy Officer at DFA, Reshaad Sha, has a dream to create ‘smart cities’ in South Africa; cities that utilise technology available to them to grow their companies, the economy and the reputation of the country as a powerful competitor in the global market. He states that ‘There are significant benefits to be had from SA investing in smart cities around the country, but to achieve these benefits, the right infrastructure needs to be put in place to harness advanced technologies that will improve education, traffic management, billing, city resources and asset management, crime control and public safety.’ As will be seen Sha’s dream is gradually being realised, as DFA under his watchful eye helps to propel South African into the future. Boasting the largest open-access network in South Africa, DFA are able to supply not only major cities, but also smaller towns, and any enterprise regardless of size can rent out their lines. DFA provide customers with far higher bandwidths than most other suppliers, can install extra fibre at short notice, and exclusively use only the most up to date techniques and components in their wares. Furthermore, with an average uptime of 99.9%, the reliability

and coverage of their services can be met by few other corporations in South Africa. Such a high percentage can be predominantly attributed to the dedication the company has for monitoring and maintaining their cables and services, which is a 24/7 operation. The company are continuously modifying and re-evaluating their infrastructure to meet the complex needs of their varied client base and their specialist technicians tirelessly work to anticipate potential problems and work to prevent them at the earliest possible opportunity – usually within 4 hours of initial identification. With such unparalleled attention to detail, the key role that DFA play in facilitating the growth and development of other allied and non-allied companies is plain to see. Consequently, as DFA help other businesses to grow and indeed the whole market and economy of South Africa develop, they too must follow suit in order to be able to meet the complex demands of their customers amid the quagmire of technological advancement. A recent project involved the company launching their Umhlanga Tachyon Node in La Lucia, KwaZulu Natal, a specialist piece of equipment that acts as an aggregation point for Internet Service Providers to provide

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businesses within the nearby vicinity with high speed internet. Traditionally, the further away businesses are from the cable network access point, the more expensive their costs are. The Nodes will allow companies to place their connectivity equipment close to the fibre supply, both reducing costs and increasing network reliability. DFA are hoping to have installed 111 nodes by December 2015, with the first 20 having already been located by March 2015. Not only are they being placed in large metropolitan areas, but also in more sequestered, rural areas such as Ermelo, Witbank and Empangeni, extrapolating the availability of internet services to all that desire connect their business to the World Wide Web. The most prominent project on the horizon for the company is their intention to provide high speed broadband internet to as many as 20,000 businesses before March 2016, a phenomenal sum that actually eclipses the current number of existing business connections that the company already has. Mr Sha has noted that ‘Although there are several drivers leading to increased demand for connectivity, we have identified that globally, cloud computing is a critical driver for the adoption of fibre based connectivity. In order for cloud

computing to deliver the benefits of cost saving, business continuity, and business agility, it requires a secure and super-fast connection that only a fibre network can provide’. Sha’s statement not only demonstrates a keen awareness of international standards and expectations of his field, but also a compelling drive to update business practices in South Africa. The cloud technology that he speaks of is in its relative infancy in general, but the desire to incorporate it into the burgeoning industry of a country often considered developmentally behind highlights a real commitment to unleashing the true potential of South Africa as a contender in an ever growing global marketplace. Meeting this challenge will evidently require a substantial amount of capital, and although the company has not disclosed the exact amount, the very existence of the project is indicative of the financial success that the company is currently operating with. In turn, such a feat has inevitably required DFA to expand their staffing level, with the aim of increasing the 4500 of those already in their employ by 20% over the next few months. The company will also extend their reach in terms of outsourcing, working alongside other companies to their mutual benefit. Furthermore, the company has

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shown a keen interest in extrapolating the reach of their employment drives. In 2014, they began to fund specialist Business Administration Learnerships for unemployed women with disabilities ranging from visual and hearing impairments to chronic illnesses. Administered by Randburg-based BEX Academy, DFA cover the cost of the womens’ education, along with a R1,500 monthly stipend per learner and the chance of placement at the company for successful graduates. However, it is not just potential employees that DFA try to help; DFA funded a permanent care home for up to 6 orphaned children and continue to provide monetary support to its upkeep. They have provided pupils at the Eendracht Primary School with laptop computers and in July 2013 began the process of installing and providing the Irene Middle School with access to high speed internet, investing R360,000 per month in an ongoing partnership. Ironically, there is nothing ‘dark’ about DFA. If anything, the company is nothing but a shining beacon in South Africa for both its technical and philanthropic work. The fact that they are simultaneously aiding with bringing the country’s technology up to speed, expanding the market and economy and supporting those that may be at a social disadvantage, are true markers of a company that functions with integrity and dedication. With innovative projects on the horizon that will no doubt boost their own positive reputation and indeed that of their customers, DFA certainly seem to be a real gamechanger in the South African Telecoms industry, helping businesses across the country to connect and conquer within the marketplace.

DARK FIBRE AFRICA +27 12 443 1000 info@dfafrica.co.za www.dfafrica.co.za

connect your future

Plessey offers a broad range of end-to-end integrated solutions to connect you to the future.

Tel:+27 (0)11 655 1700 | Fax:+27 (0)11 655 1700 | Email: Info@plessey.co.za | Web: www.plessey.co.za

EXHIBITION CALENDAR //TABLE OF ALL EVENTS:

KEY UPCOMING EVENTS ACROSS THE COUNTRY Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors.

ELECTRA MINING BOTSWANA 1 – 3 SEPTEMBER 2015 Following a series of many successful years in South Africa, and recognising a need to meet Africa’s mining needs, Electra Mining will be held in Gaborone either side of the show in Johannesburg. Botswana remains the highest rated African country in business rankings and boasts a booming mining industry with the biggest diamond reserves in the world. JOHANNESBURG BOAT SHOW 14 – 16 AUGUST 2015 Ok, not strictly business related this one, but still an absolute must for boating and watersport enthusiasts. South Africa’s largest indoor leisure boating show, the Johannesburg Boat Show, heralds the arrival of spring with its staging from 14 - 16 August 2015 at the Johannesburg Expo Centre, Nasrec. Boaters and dreamers alike can board and browse hundreds of sleek new boats, from luxury motor to highperformance boats to fishing and ski boats, while enjoying all that the South African outdoor lifestyle has to offer.

AFRICAN FARMERS WORKSHOP & EXPO 18 – 20 AUGUST 2015 Hosted at JHB Expo Centre, the African Farmers Workshop and Expo is a 5 year old interactive agricultural show, with the objectives of promoting and empowering the emerging African farmers of South Africa, facilitating their training, skills development and showcasing opportunities within the agricultural sector. It also provides a unique opportunity in ensuring that the private sector interacts with the public sector in the efforts of empowering and upskilling emerging African farmers. This is achieved through the organisation of an indoor and outdoor expo, where commercial companies in the agricultural value chain could exhibit and showcase their vast range of products and services. The information dissemination platform is provided through the hosting of workshops, where our various clients and governmental organisations are able to do presentations to farmers and educate them on various topics, ranging from financing, to access to markets, commercial vehicles and export opportunities.

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DECOREX JOBURG 6-10 August 2015 CRAFT COLLECTIVE 6-10 August 2015 100% DESIGN SOUTH AFRICA 6-10 August 2015 JOHANNESBURG BOAT SHOW 14-16 August 2015 AFRICAN FARMERS WORKSHOP & EXPO, 18-20 August 2015 THE WEDDING EXPO 22-23 August 2015 SANRA 27-29 August 2015 THE BABY EXPO 28-30 August 2015 HOBBY X DURBAN 28-30 August 2015 ELECTRA MINING BOTSWANA 1-3 September 2015

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