Enterprise Africa September 2015

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

AFRICA

ENTERPRISE September 2015

www.enterprise-africa.net

MTN SA:

Welcoming

A Bold

New World ALSO IN THIS ISSUE:

Kumba Iron Ore / Forestry SA / Refraline / Harmony Gold

Commercial Property Standard Bank Insurance Brokers can advise you on Commercial Property Insurance, protecting your most valuable assets, including cover for: • Offices • Shopping complexes • Industrial factories • Warehouses • Distribution centres • Hotels.

We can also advise you on additional cover for subsidence and landslip, geysers, general and tenant’s liability and loss of rent.

For more information speak to an advisor at any Standard Bank Business or Commercial Centre, or call us on 0860 999 334.

Terms and conditions apply.

Products are underwritten by Standard Insurance Limited.

Standard Bank Insurance Brokers (Pty) Ltd (SBIB) is an authorised financial services provider FSP 224. SBIB is a company of The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06), an authorised financial services and registered credit provider (NCRCP15).

Moving Forward is a trademark of The Standard Bank of South Africa Limited.

207905 5/15

Moving Forward

TM

EDITOR’S LETTER

Timothy Reeder EDITOR tim@enterprise-africa.net Joe Forshaw SUB EDITOR joe@enterprise-africa.net Sophie Bolderstone SENIOR PROJECT MANAGER sophie@enterprise-africa.net Sam Hendricks SENIOR PROJECT MANAGER sam@enterprise-africa.net Nathan Murphy PROJECT MANAGER nathan@enterprise-africa.net Karl Pietersen PROJECT MANAGER karl@enterprise-africa.net David Napier PROJECT MANAGER david@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…

//

In May, international business magazine, Forbes - ‘the capitalist tool’, released its annual list of the world’s 2,000 biggest publicly-traded companies and this year 13 South African companies made the cut.

Among the front runners, and part of the top 500, was the MTN Group.

The company has been on quite the journey since its inception in 1994. According to Forbes, the MTN Group registered sales of US$13.5 billion and profits of US$3 billion with a market value of US$34.5 billion. But it hasn’t been all plain sailing; just last month there were widespread negativity following a seven-week strike that came at a time when competition in the domestic market was particularly tough.

Fortunately, the strike is now over and many have praised new CEO of MTN SA, Mteto Nyati, for his role in ending the disputes. In this edition we talk exclusively to Nyati and hear about his plans to deliver more growth and more services to the not just South Africa but the whole continent.

He has his sights firmly set on the top spot in the industry and his drive and determination will be nothing but an asset for MTN. “We need to aspire for better things as a company” he tells us “and one of those things is to become the best mobile operator within the African continent, and there is absolutely nothing to stop us achieving this” – we love this sort of ambition!

If you are an MTN customer or employee, get in touch with us and tell us what you think of the new CEO and his plans for the future – we always love to hear from our readers!

Timothy Reeder EDITOR

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

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

06/NEWS: The Month that was...

12/MTN SOUTH AFRICA: Welcoming A Bold New World

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

70/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 / September 2015 / www.enterprise-africa.net

Since its inception in South Africa in 1994, MTN has grown into a multinational telecommunications player with operations in 22 countries across Africa and the Middle East.

CONTENTS 26/

42/

62/

08/DU ROI LABORATORY: Yielding Significant Results

48/KUMBA IRON ORE: The Iron Giants

Du Roi Laboratory specialises in the production and distribution of disease-free, virus-indexed tissue culture sugarcane and banana plants.

Whilst Kumba Iron Ore may not be a household name for us, there is a high probability that our homes contain products or are located close by to structures that are made with the iron ore that this company source.

26/HARMONY GOLD: Breaking New Ground With operations focussed upon Papua New Guinea and South Africa, Harmony’s sole original mine has developed into a portfolio comprising nine underground mines, one open-pit mine and several surface operations across the two countries.

56/BULLDOG PROJECTS: Bringing Power to the People Over the past eleven years, Bulldog Projects have worked tirelessly to become one of the leading providers of corrosion protection to the construction industry in South Africa.

34/REFRALINE: A Global Customer Focus

62/FORESTRY SA: Promoting Growth Together

Managing Director Manfred Rosch talks us through the company’s operations, and its plans to extend its footprint throughout Africa and beyond.

With the purpose of representing timber growers in South Africa, Forestry South Africa (FSA) is both South Africa’s foremost and largest forestry organisation, numbering among its membership all 11 corporate forestry companies active today in the Industry.

42/STADIUM MANAGEMENT SOUTH AFRICA: The Masters of Ceremonies Stadium Management South Africa was appointed to independently administer the country’s FNB, Orlando, Dobsonville and Rand stadiums by the City of Johannesburg in 2009.

66/DEFY APPLICANCES: A History of Reliability Having just celebrated its 110th birthday, Defy Appliances today finds itself Southern Africa’s largest manufacturer and distributor of major domestic appliances.

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

NEWS IN BRIEF A NEW OPPORTUNITY FOR INVESTORS IN EGYPT The discovery by Italian energy company, Eni, of a huge gas field off the Egyptian coast could attract international energy companies that had steered clear of Egypt because of late debt payments and low prices, according to a leading gas producer in the country.

The estimated size and quality of the discovery announced by Eni last month, combined with Egypt’s recent efforts to meet overdue debt repayments to foreign companies, will attract interest from far and wide, said Patrick Allman-Ward, CEO of United Arab Emirates (UAE) energy company Dana Gas. “People in petroleum tend to have a feeding frenzy kind of response to this kind of discovery,” Allman-Ward told Reuters. “It will no doubt kick off a lot more interest from international oil companies in Egypt as an exploration destination.”

Egypt hopes the field’s estimated 30-trillion cubic feet (tcf ) of gas will help to ease an energy crisis that has obstructed efforts to rebuild an economy battered by political unrest since an uprising toppled Hosni Mubarak in 2011.

Gas production has steadily declined while consumption has risen, but low prices offered by the government and delays in paying arrears have discouraged investment.

Until last week’s discovery, Egypt was estimated to have 70 tcf of undiscovered gas. In light of the new field, Allman-Ward believes there will be an upward revision to the estimate for total reserves that have yet to be found.

“That in itself will mean that it will generate a lot of additional interest in the petroleum sector,” he said.

INCENTIVISE COMPANIES TO BOOST INNOVATION The South African government should incentivise people so as to encourage them to be innovative and succeed, says a representative of the Trade and Industrial Policy Strategies (TIPS).

Speaking at an Economic Policy Dialogue hosted by the Department of Trade and Industry (dti) in early September, TIPS programme manager for trade and industrial policy, Dr Neva Makgetla, said the dti’s Industrial Policy Action Plan (IPAP) should encourage business to innovate new ideas and products.

She emphasised that the identified IPAP sectors and products should be earmarked for sustainability through innovation.

“For people to innovate they need a lot of support, including that of the state. We need to listen to what people need for them to innovate, so

that we may be responsive to their needs,” she said.

She highlighted that some of the constraints for innovation were the fact that most of the innovators still lacked access to the markets for their goods and services, and did not have the know-how in terms of information technology. They also did not have access to finances.

Speaking at the same event through a video link, the Korean institutionalist and political economist from the University of Cambridge, Dr Ha-Joon Chang, emphasised the need for developing countries to utilise their industrial policies to ensure that they are competitive.

Chang said industrial policies had a negative connotation globally because countries tend to use them to protect themselves and their industries.

NERSA TO HOLD RENEWABLE ENERGY HEARINGS The National Energy Regulator of South Africa (NERSA) will held public hearings on the renewable energy power plant license applications in September.

The public hearings kicked off on Tuesday September 8th, in Kimberly, in the Northern Cape.

The hearings then moved to the Western Cape on Wednesday followed by Port Elizabeth in the Eastern Cape on Thursday.

The public hearings closed in Gauteng at NERSA’s offices in Pretoria on Friday.

On 26 May 2014, the Department of Energy

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

released a request for proposals for bid window 4 of the Renewable Energy Independent Power Producers.

“A total of 77 bids amounting to 5 804MW were received and only 26 preferred bidders were announced in two batches with a total capacity of 2 205 MW. The first batch of

13 preferred bidders was announced on 10 April 2015 and the second batch of 13 preferred bidders was announced on 07 June 2015,” said NERSA. The license application received by the energy regulator for bid window 4 are for solar photovoltaic (PV), onshore wind, small hydro and biomass.

NEWS ROUNDUP UBER TO EXPAND FIVEFOLD IN LAGOS Uber Technologies is negotiating cheaper deals for new vehicles with Kia Motors to boost its number of drivers fivefold in the Nigerian city of Lagos, Africa’s biggest, to 3,000 by the end of next year.

The US car-booking company has signed agreements with the South Korean car maker and Lagos-based Access Bank to reduce the down payment required for new vehicles to 95,000 naira ($470) from almost 200,000 naira, with the balance payable over four years, said Uber subSaharan Africa GM Alon Lits.

“Since we launched in Lagos just over a year ago, more than 600 job opportunities have been created using the application,” Lits said. “That’s really just the

beginning. We feel that the number can be well over 3,000 by the end of 2016.”

Uber, which connects drivers with passengers via its smartphone application in more than 300 cities, was seeking partnerships that would reduce costs for new drivers as the company expanded in Africa, Lits said. Founded in 2009, Uber does not own vehicles or employ drivers, and existing taxi companies in cities including Johannesburg and Cape Town have protested at what they consider to be unfair competition.

Challenges facing Uber in Lagos, the first sub-Saharan African city to have the service outside SA, include congested traffic and poor mapping quality, according to Lits.

Another is that a relatively small proportion of Nigerians know how to operate a smartphone well enough to manage the trips, Ebi Atawodi, GM for Uber Lagos, said. “The smartphone module is

usually what trumps people,” Atawodi said.

While Nigeria had 148.5-million active mobile-phone subscriptions as of July, according to the Nigerian Communications Commission, fewer than 10% are for smartphones. Nigeria is Africa’s most populous country with more than 170-million people, of which about 21-million live in Lagos.

To tackle the issue of mapping, Uber was working with other technology companies on ways to direct drivers without access to conventional directions, Lits said. “Unlike in more developed markets, you often don’t have an address where the driver will be able to get turn-by-turn directions.”

Uber’s growth in Lagos could match the speed of take-up in SA, according to Lits.

The company’s drivers in Africa’s most industrialised economy have taken passengers on more than 2-million journeys this year.

“Lagos is three times the size of greater Johannesburg,” he said, referring to its population. “It’s a huge opportunity here.

DANGOTE LOOKS TO ZIMBABWE FOR GROWTH Africa’s richest man, Aliko Dangote, said last month that he planned mining and power generation projects in investment-starved Zimbabwe as well as to set up a large cement factory.

Dangote met with President Robert Mugabe in Harare in a rare sign of possible foreign investment for Zimbabwe, which has been in economic decline for more than ten years.

“We had a very, very good meeting with the president and I told him that we have already decided to invest in three areas, one is power, second one is cement and third one is coal,” Dangote said.

“We have already made up our minds to invest and so we are here and we will invest.” The Nigerian billionaire said he would spend close to $400m on the cement plant, which will produce a million and half tonnes of cement a year, making it the biggest in country.

He said the investment package would create jobs and “to help Zimbabwe to develop their own economy.” Mr Dangote is the head and founder of multibillion dollar Dangote Group which has interests including cement production in several African countries.

The company also has major oil, gas, food and real estate investments across the continent.

The International Monetary Fund said this year Zimbabwe’s economic prospects looked “difficult”, with growth falling again after a brief improvement.

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

DU ROI LABORATORY

Yielding

Significant Results

PRODUCTION: Timothy Reeder

Du Roi Laboratory specialises in the production and distribution of disease-free, virus-indexed tissue culture sugarcane and banana plants. These are multiplied from superior selections obtained from the Du Roi Laboratory foundation block and continually tested, evaluated and compared for their commercial performance attributes.

//

Du Roi’s Anne Davson and General Manager, Suné Kleynhans, take us through the beginnings of the Lab and the central factors attributing to their unique position in the market.

Du Roi laboratory was established in 1994 and produce sugarcane and banana plants through tissue culture, suppling between six and eight million plants per year. The main advantages of tissue culture plants are that they are free from disease and nematodes.

Du Roi’s elite selections result in higher yields and more vigorous growth.

Through the process of tissue culture, new varieties can be multiplied rapidly and the appropriate certification is easily obtained as most countries globally accept the product from South Africa. Suné highlighted: “The plants, being free of disease, are clearly a great advantage to the industry.

They can easily be transported into

8 / September 2015 / enterprise-africa.net

other countries and do not need to go through quarantine or other procedures, such as hot water treatment before field planting.”

Both the sugarcane and banana projects have reaped notable success for Du Roi over the past year, as Suné explained: “Our sugarcane project has kicked off extremely well, seeing us send over 400,000 plants already this year into Sierra Leone. Over and above this, we have distributed sugarcane plants into Ghana, Zambia and Mozambique. Banana plant productions out of the lab continues to see a steady growth of its global footprint.

We are delighted to say that we are about to send banana plants into the French West Indies, which represents a new market for us. In addition we will continue to send banana plants into African countries, in particular the SADAC countries, Morocco, Ivory Coast and Cameroon.”

Du Roi Laboratory is the first tissue culture laboratory in Africa to be ISO accredited for banana production, another reason why it continues to be chosen ahead of the competition. “We have a great track record,” says Anne. “It’s a proven quality product, which is why people keep coming back to us. We have our own unique selections which have been evaluated by Dr John Robinson, a world-renowned banana specialist and horticulturalist, and those selections have proven themselves to have a higher yield than the traditional equivalents.

“We have invested in procedures that few other laboratories in the world follow. For example, each plant that is initiated into our lab is virus indexed, so we can guarantee that each plant is completely virus-free. We also have complete traceability from initiation through to destination.

“Apart from delivering high quality plant material reliably, we ensure that our

BUSINESS PROFILE

prices remain competitive. Additionally, our directors have been in the business for 25 years, and so the importance of customer relations must never be overlooked. We provide our customers with technical support and work together in ensuring success,” says Anne.

The Du Roi Group continues to concentrate on plant production moving forward. Suné explains: “Our citrus nursery continues to supply high quality, certified plant material, in the region of a million plants each year into South Africa and the Southern regions.

Du Roi Multiplant - which multiplies and supplies elite, patented varieties of pomegranate, granadilla and guava plants into Africa.”

Du Roi’s involvement with the development of bioenergy technology forms another of its key considerations at present. “If we just look at the energy

crisis currently being seen in South Africa, we are certainly looking to support any projects geared toward using bioenergy to produce ethanol,” states Suné. For example, they have supplied plants for the ethanol production at the 10,000 hectare Makeni sugarcane estate, a project overseen by Addax seeking to produce some 85,000m3 of ethanol per annum.

“This first project we have entered into with Addax aims to provide some solutions to the challenges of sugarcane growing in Sierra Leone,” says Suné.

“With tissue culture we are able to provide field-ready plants, to be planted

as soon as they land in Sierra Leone.

We can certify that these are virus and disease free, guaranteeing the increased yields. Tissue Culture is far superior to the conventional methods of planting sugarcane. Conventional methods require hot water treatment at specific temperature which does not guarantee that it will be disease-free and may damage the seed material.”

Du Roi will be exhibiting a near singular focus on its main products in the forthcoming years, in order to maintain its characteristic quality and delivery of service. “Our sugarcane project only came to fruition in October

//OUR SELECTIONS ARE PROVEN TO HAVE A HIGHER YIELD THAN THE CONVENTIONAL EQUIVALENTS//

10 / September 2015 / www.enterprise-africa.net

DU ROI LABORATORY

//WE HAVE INVESTED IN PROCEDURES THAT NO OTHER LABORATORY IN THE WORLD FOLLOWS// last year” explains Suné, “so we are still establishing our markets and getting the Du Roi name associated with sugarcane. We have research and development underway in a number of other potential fields, like bamboo and blueberries, all different opportunities that have been brought to us. We are currently evaluating these and deciding where best to place our focus.”

Du Roi emphasizes that it deals only in genetically improved plant material, not modified. They focus their expertise on providing solutions to growers across the globe. “There

are many challenges for banana and sugarcane growers,” states Anne, “with regard new diseases, viruses, insect and water problems, so we are also heavily involved in research in this regard.

We will be sourcing resistant plants from research institutes both in South Africa and Europe to bulk up for trial purposes, as well as expanding into the rest of the world when it comes to renewable energy.”

As the company grows, they will continue to support social responsibility through their own employees and local communities.

“We have ongoing training and development programs for our staff, as well as staff wellness days where we encourage openness and help manage any critical illnesses,” outlines Suné.

“Furthermore, we always look at our communities. Whether this is assisting with bursaries, providing crèches for employees’ children, or giving aid to orphanages for the most vulnerable children, we are tackling things which are particular challenges in our area.

We continually strive to empower the people around our businesses.”

DU ROI LABORATORY +27 15 345 1217 duroilab@mweb.co.za www.duroilab.co.za

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

© WARRENSKI - FLICKR

MTN SOUTH AFRICA

Welcoming

A Bold

New World PRODUCTION: Timothy Reeder

Since its inception in South Africa in 1994, MTN has grown into a multinational telecommunications player with operations in 22 countries across Africa and the Middle East.

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

BUSINESS PROFILE

14 / September 2015 / www.enterprise-africa.net

MTN SOUTH AFRICA

//

MTN SOUTH AFRICA CEO, MTETO NYATI

MTN is a leading emerging markets operator, offering an integrated suite of communications products and services to its 231 million customers. This includes traditional and mobile voice and data, digital and mobile financial services, as well as enterprise services.

The company invests significantly in advanced communication infrastructure, with capital expenditure of R25,4 billion for the past finacial year. The talent of its more than 22,000 employees, combine to deliver to its customers the new digital world it envisions, brightening lives through innovative products and dedication to providing an enhanced customer experience.

MTN South Africa forms an integral part of this global communications partner and world-class cellular network, enjoying around 37% of the market share in the country. In 2011, MTN rolled out the largest network infrastructure development project in the history of the company, with the effect of increasing its 2G network coverage to accommodate 98.6% of the country’s population. MTN South Africa’s EDGE and 3G sites also afford 65% of the population better call and data connectivity. Newly appointed MTN SA CEO Mteto Nyati summarises the group’s operations and the daring approach behind them as such: “The Group currently operates in 22 countries, and within that are territories where other people have not wanted to go and invest - Nigeria, Iran, Syria, for example - and these are now paying off. We are a company that is not afraid to be bold, but at the same time one with the ability to expertly manage

these risks and execute well on the things we choose to pursue.”

Its dedication to bringing customers a faultless internet connectivity experience has seen MTN invest substantially in submarine cables designed to improve broadband capacity. It is also the biggest investor in the West Africa Cable System that links South Africa and its west coast to Europe, while MTN has invested heavily too in the Eastern Africa Submarine Cable System, to further improve network redundancy. With MTN SA now set to establish itself at the very forefront of the market, Nyati took us through the early stages of his newly acquired position. “It has been a very busy four weeks, a time in which communication has been key,” he explains. “First of all, this has meant listening to our customers, both in the consumer and enterprise brackets, but also talking to our employees and addressing some of their concerns, and finally with our partners. This has been very enlightening in terms of gauging where we are, and what kind of company we can go on to be.”

Among his first successes was bringing a satisfactory end to the protracted strike action which had affected the company for some time leading up to his appointment. “When I took on the role one of the biggest challenges facing MTN South Africa was the industrial action which had been running for two months already. I felt that we needed to solve this particular challenge quickly, and we achieved that. With these things sometimes the challenge is that we take positions, and then hold onto them and refuse

//WE NEED TO ASPIRE TO BECOME THE BEST MOBILE OPERATOR WITHIN THE AFRICAN CONTINENT// www.enterprise-africa.net / September 2015 / 15

MTN SOUTH AFRICA

to engage. Whereas in fact, we should always attempt to engage, so the first thing we decided to do when I joined was open a channel of communication with the unions. It became clear to both parties that an end was desirable, and we thus put together the necessary conditions and terms which were, in fact, in line with what we had proposed at the beginning of the strike, meaning that there was no negative impact financially. Employee engagement is one of my main priorities to avoid anything similar moving forward.”

//BROLL ALLOWING YOU TO FOCUS ON YOUR CORE BUSINESS The ongoing growth story of MTN across the continent is a fantastic advert for how South African-born companies can take Africa by storm. With a lot of hard work and innovation, MTN is now one of the world’s largest mobile telecommunications companies. But as the business continues to grow and take on more and more subscribers, in more and more markets, it’s important that MTN can focus on its core business of ‘making its customers lives a whole lot brighter’ and one way it is doing this is to outsource its non-core business to trusted partners.

Earlier this year, MTN began a relationship with Broll Facilities Management and Broll is now responsible for looking after the huge portfolio of property owned

by MTN. Broll’s MTN Account Executive, Mel Barends explains exactly what facilities management is, and how MTN is benefitting from Broll’s experience and expertise.

“We look after all MTN facilities in South Africa, Ghana and Ivory Coast and soon we will manage their facilities in Cameroon, Nigeria and Swaziland,” he says.

“In South Africa we manage approximately 500 sites. It’s a combination of different kinds of facilities. MTN have stores, warehouses, corporate offices, network sites and high-volume repair centres. In Ghana we will manage over 70 sites and in Ivory Coast we will manage over 20 sites. They want to experience the same level of service in the Ivory Coast as they would in South Africa and we certainly offer that.”

Broll’s approach to facilities management is to employ international best-practice techniques and offering a

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

single point of contact for all services makes things a lot easier for large corporate customers.

“MTN want their facilities to be managed at the highest level so that the occupants can enjoy coming to work.

Previously, MTN was managing all of these services themselves and they had to employ a lot of people to manage all of these services. Now they only have one supplier, Broll, and Broll is going to be rolling out these facilities management services in a total of 21 countries where MTN operate. We are currently busy organising country number six,” says Barends.

One of the most important offerings from Broll is peace of mind; allowing clients to focus solely on their core business.

“MTN is a telecoms company and not a facilities manager and they need to focus on their core business,” explains Barends. “They don’t need to be involved in cleaning, security, catering and things like this. They need a specialist organisation who can bring cost savings to the table. We can organise all the hard, soft and technical services such as ventilation and cooling, plumbing, generators, electrical systems, cleaning, catering, security, waste management, pest control and things like this.

“We look after all the aspects of a building that MTN occupy to make sure that the building is conducive to optimum performance for MTN,” he concludes. www.broll.com

Accessing the full potential of your property assets

Consider outsourcing your facilities management to Broll

Broll’s whole life approach to facilities management is customised to support your institution's objectives and ensure your property assets are maintained for optimal value. The result is a dynamic, vibrant relationship with your community and the ability to help address national goals of sustainable development in South Africa.

Broll Facilities Management Services • Management of outsourced services • Facilities management systems • Capital Projects • Utilities Management • Waste Management • Event Management • Quality Management • Occupational Health and Safety Management

Broll’s full spectrum of property-related services: Asset Management • Auctions and Sales • Broking • Corporate Real Estate Services • Facilities Management Project Management • Property Management • Research • Retail Leasing and Projects Shopping Centre Management • Valuation and Advisory Services

Ghana | Kenya | Malawi | Mauritius | Mozambique | Namibia | Nigeria | Rwanda | South Africa | Zambia

Visit broll.com or call our team on 08610broll

MTN SOUTH AFRICA

Now firmly established in his new role as CEO, Nyati is unequivocal in his aim to position MTN South Africa as number one in the country. In his own words, “as MTN today, we are sitting at number two and we have been number two since inception. My sense is that we cannot sit and be comfortable in the number two spot, we must have bigger aspirations than that. We need to aspire for better things as a company and one of those things is to become the best mobile operator within the African continent, and there is absolutely nothing to stop us achieving this. There are however certain things which need to be done in order for this to be the case.”

“Firstly,” he continues, “the level at which we are investing in our network needs to be at the same level as or better than the competition. From the point of view of network coverage, the speeds or throughput of our network and equally of availability, these are all incredibly important. Also key here is

//THE LEVEL AT WHICH WE ARE INVESTING IN OUR NETWORK NEEDS TO BE AT THE SAME LEVEL AS OR BETTER THAN THE COMPETITION// //EGOLI GAS SERVICING JOHANNESBURG Egoli Gas (Pty) Lltd is a Natural Gas reticulator in Johannesburg servicing more than 7,500 domestic, central water heating, commercial and industrial businesses in the Johannesburg area and offers environmentally-friendly, safe, reliable and energyefficient natural gas.

Our history dates back to 1892, when a 30 metre gas pipeline was first installed in President street for street lighting purposes. Johannesburg has remained the only South African city with piped gas infrastructure.

Our commitment to your energy efficient, low carbon lifestyle ensures an uninterrupted flow of natural gas

18 / September 2015 / www.enterprise-africa.net

ready to use when it’s needed, safely. Egoli Gas acquires natural gas from Sasol which is stored at a secure facility in Langlaagte, South Africa where it is carefully monitored and controlled. The gas is reticulated to Egoli Gas’ Cottesloe premises where it’s stored in low pressure holders before being reticulated to homes and businesses across the city. For domestic use, Egoli Gas is located in many of the more established Johannesburg suburbs; however, the pipeline extends even further for our commercial and industrial customers. www.egoligas.com

BUSINESS PROFILE

that overall we feel that other players in the market have decided to position themselves as number one either in value, or lower down the rankings, price. We are going to focus on being the company that delivers superior customer service - this will be the thing driving us to gain market share, and the changes will be felt immediately.”

This will be the result of huge investment on the part of the company, as Nyati details. “This year alone we are investing close to $1 billion. That, in my view, will help to set us apart from a network coverage standpoint.” This investment will be focused solely on South Africa, and primarily enabling data, “which is fuelling our growth. We need to make sure our network can handle LTE as we upgrade our 2G and 3G sites. We have just invested in a new Machine to Machine platform which

//THIS YEAR ALONE WE ARE INVESTING CLOSE TO $1 BILLION// 20 / September 2015 / www.enterprise-africa.net

MTN SOUTH AFRICA

enables us to offer what we call ‘Internet of Things’, so again it is critical for us to have a quality network as we roll out these kinds of solutions.”

Nyati has clear visions for the development of MTN SA and its planned rise to top player in the market. “Going forward I would like to ensure that this business consistently delivers growth, and I intend to shift resources into areas I believe will do this. The two primary areas are of course the enterprise and digital businesses – areas like mobile money and e-commerce, where people’s needs are increasingly growing complex and which we need to adapt to deliver, these will drive us forward.”

On the part of mobile operators there are actions which can be taken to drive this technological penetration. “One of these things is device affordability. This is preventing people from accessing this Cyan Magenta Yellow Blackof desire, and so technology, not a lack

© WARRENSKI FLICKR

How do Telecom companies digitally re-imagine their business?

There is a certain way.

In a fast-evolving marketplace which demands leadership that brings results, there exists a way of certainty: Tata Consultancy Services (TCS).

With TCS as your strategic advisor and partner, the ever-changing new landscapes of business become new vistas of opportunity. From digitally connected consumers to Big Data to emerging markets to end-to-end solutions for transforming your organization. TCS offers you market-proven, world-class experience, expertise and guidance to show the way for your business to evolve.

With telecom solutions backed by rich indust ry experience, domain expertise and a global footprint, TCS helps you re-imagine your business for the digital age.

Visit tcs.com/industries/telecom or write to us at mea.marketing@tcs.com, and you're certain to learn more.

Tata Consultancy Services (SA) Pty Ltd Tata House, 39 Ferguson Road Illovo, South Africa Phone:+27-114591700

151mm wide x 112mm cut size (157mm wide x 118mm with Bleed)

www.enterprise-africa.net / September 2015 / 21

BUSINESS PROFILE

when we see these devices coming from China at less than $100, that is the kind of trend that will enable many people on this continent to move toward smartphone usage. In South Africa we’re looking at maybe 25% smartphone penetration so we still have a long way to go, while across the continent this percentage is even lower. This kind of device will allow us to connect a significant number of people, and change the lives of many citizens.”

MTN South Africa has committed significantly to helping create opportunities for South Africans and develop the economy across the country.

“As a company we feel strongly that education, in particular for our youth, is key to allow this country to be globally competitive,” states Nyati. “We have set up the MTN Foundation, whose biggest focus is on providing connectivity at schools and helping teachers to use ICT as a tool in teaching children and making

22 / September 2015 / www.enterprise-africa.net

MTN SOUTH AFRICA

//MTN HAS THE LARGEST MARKET SHARE IN 15 OF ITS 22 COUNTRIES OF OPERATION// learning exciting. We are able to provide support and connectivity to over 450 schools per annum, and the light that we bring to them impacts hundreds and hundreds of learners and allows them to connect with the rest of the world through our foundation.”

The extent of MTN’s footprint globally is among the most notable aspects providing its foundations for future growth. “If you look at most of the companies in our market in South Africa, most of them have a strategy geared toward expansion beyond South Africa.

This takes them into areas with which they are unfamiliar, and they thus need partners to guide them in these territories.

INNOVATION HAPPENS THROUGH PARTNERSHIP Forging powerful business solutions in a continually changing world takes fearless insight and brave ideas. This is why MTN partners with Aqua.

Our local roots and worldwide inf luence and support make us a truly African partner… who knows that the only way to grow is together. aquaonline.com

www.enterprise-africa.net / September 2015 / 23

MTN SOUTH AFRICA

Given our footprint, we have become a natural partner to them - whether a company in Nigeria wants to expand down south, or from South Africa looking geographically up north, we have made huge investment in more than 45 data centres across the continent with a MPLS network connecting them. The infrastructure that we have put in place, the cloud services that we have invested in, this all combines to make us the natural partner to these companies.”

MTN SOUTH AFRICA info@mtn.co.za www.mtn.co.za

//ACCENTURE HIGH PERFORMERS PUSH THE ENVELOPE. THEY TRANSFORM INDUSTRIES. THEY OUTPERFORM THEIR COMPETITION, AND THEMSELVES. ACCENTURE SHOWS THEM HOW Accenture is an innovative global management consulting, technology services and outsourcing company.

Accenture collaborates with its clients to help them be the best they can be and become high-performance businesses and governments.

In the ever-growing enterprise and digital business space, Accenture is keen to help companies transform and take advantage of everything that today’s technology can offer.

In partnership with telecoms giant MTN, Accenture is helping to develop the enterprise business space and allow organisations across the whole African continent to enter a ‘bold new digital world’.

“The enterprise business space is rapidly transforming” explains Accenture Managing Director CMT, Nitesh Marcel Singh “and what we’re finding is that a lot of the SMEs and large corporates who are trying to grow on the continent need lots of communication services to help make them more competitive so in our relationship with MTN we are trying to work collectively to empower a number of these organisations, giving them the tools to launch their businesses across the continent.

“It’s not just technology; it’s streamlining entire operations and putting in place platforms, processes

24 / September 2015 / www.enterprise-africa.net

and strategies so that we can help to transform these enterprises.

“We’ve joined forces with MTN to help other organisations come into MTN and together we are going to help them transform their businesses and bring them into the digital world,” he says.

In what is a complex and multifaceted environment, businesses entering the digital world need guidance from a seasoned, knowledgeable partner and who better than Accenture – a company whose client base is made up of more than three-quarters of the Fortune Global 500.

“Our journey with MTN is to transform the enterprise business space on the continent. From an Accenture perspective, what we see is organisations rapidly moving towards this digital world. In our partnership with MTN, we will work closely with them to leverage the cloud that they’ve launched. What we see is opportunities for many of our Accenture clients and opportunities for clients that we are yet to discover with MTN on the continent. What we’re trying to achieve collectively is working with these large multinationals all over the continent and becoming their partners,” says Singh. www.accenture.co.za

HARMONY GOLD

Breaking

New Ground

PRODUCTION: Timothy Reeder

With operations focussed upon Papua New Guinea and South Africa, Harmony’s sole original mine has developed into a portfolio comprising nine underground mines, one open-pit mine and several surface operations across the two countries. The company’s 50% interest in the Morobe Mining Joint Ventures in Papua New Guinea include among them the important WafiGolpu project, as well as extensive exploration tenements.

www.enterprise-africa.net / September 2015 / 27

HARMONY GOLD

//

Mining has long been a central feature of the burgeoning economic development currently underway in South Africa, with over 130 years of influence from the trade transforming it into the most industrialised country in all of Africa. Mining as a whole accounts for almost one fifth of the economy and over 1.3 million jobs, which support a total of more than 13 million people.

Work linked to the gold sector alone employs over 142 000 people, with a further 1.4 million dependant also benefiting. The remarkable contribution it makes to the whole of society spans across the community, enterprise and skills development,

//MERNOK ELEKTRONIK SPECIALISING IN THE DESIGN AND MANUFACTURE OF POWER ELECTRONIC AND EMBEDDED CONTROL SYSTEMS Founded in 2008 by managing director Schalk Janse van Rensburg, Mernok Elektronik has come a long way in just seven short years. The company, which is now one of South Africa’s premier electronic and embedded control systems organisations, is active in three main areas, namely mining applications, military applications and high-end industrial applications.

“Mernok Elektronik is a young rapidly growing company that specialises in the design and manufacture of power electronic and embedded control systems. We have a strong team of designers with vast experience in the mining and military industries. We used this experience to develop a new range of products specifically for the mining industry with focus on vehicle safety management and logistics management including collision avoidance, license management, remote control, speed control, vehicle tracking, pedestrian tracking and traffic control,” explains Janse van Rensburg.

“Our first and second generation systems focused purely on rail bound applications and we soon identified the need to expand into different applications. After extensive market research we developed the TITAN range of products. The focus of this range was to develop a dynamic set of products that can operate continuously in very harsh environments. These

28 / September 2015 / www.enterprise-africa.net

products were all designed with maximum future expandability,” he says.

Mernok Elektronik has become a key supplier to the mining industry and, operating out of its headquarters in Centurion, the company now calls some of the biggest names in the business its clients. This includes Harmony Gold, AngloGold Ashanti, Impala Platinum, Lonmin and Northam Platinum Limited.

“The mining industry is our core focus” explains Janse van Rensburg “and we are known in the industry for our truly innovative and reliable solutions. However, the mining industry poses one of the most challenging environments to design reliable products for.”

When dealing with issues such as humidity, high temperatures, dust, water and vibration, products must be tailored to the specific needs of each customer and Mernok Elektronik is happy to offer a personalised service. “We are well known for customising to suit client specific requirements,” says Janse van Rensburg.

“We currently have products working in some of the harshest environments in the world. All of our systems are designed to give the client a highly reliable product with the lowest possible cost of ownership,” he adds. www.mernok.co.za

BUSINESS PROFILE

and sees significant investments made in infrastructure.

Harmony Gold Mining Company Limited is a major gold-mining and exploration company, the overwhelming majority of whose 35,000 employees are based in its South African operations. Here, the Company’s efforts are focused on the Witwatersrand Basin and the Kraaipan Green-stone Belt, while in Papua New Guinea it forms part of a 50% joint venture with Newcrest Mining Limited.

Papua New Guinea is widely recognised as one of the world’s foremost emerging gold mining regions, and the joint venture includes within it such prospects as Hidden Valley, an open-pit gold and silver mine, and the Wafi-Golpu project, among the best

gold copper porphyries in South East Asia. Alongside its joint ventures in Papua New Guinea, Harmony’s own fully owned exploration portfolio focuses principally on highly prospective areas in the country, where the resource base now represents 30% of Harmony’s total gold resources, in line with its strategy to increase geographic diversification.

Harmony was first incorporated and registered as a public company in South Africa in August of 1950, later becoming a company managed by Rangold operating out of the single mine lease it held at the time. The winding up in 1995

of Randgold saw Harmony reborn as an entirely separate entity, one whose operations have grown significantly in scope since this important milestone.

Now it is an independent, world-class gold producer, having continually been awarded additional mining rights throughout its short history in the Free State, Mpumalanga, Gauteng and North West prov-ince in South Africa.

These have all been achieved through acquisitions, beginning with Lydex in 1997, followed by Evander in 1998, Kalgold in 1999, Randfontein in 2000, ARMgold in 2003 and most recently

//PAPUA NEW GUINEA IS WIDELY RECOGNISED AS ONE OF THE WORLD’S FOREMOST EMERGING GOLD MINING REGIONS//

30 / September 2015 / www.enterprise-africa.net

HARMONY GOLD

//WE HAVE RESPONDED TO A LOWER GOLD PRICE BY RATIONALISING OUR ASSETS AND RESTRUCTURING OUR PORTFOLIO// Avgold, in 2004. As well as its existing sites Harmony Gold is continually striving to develop world class mines in both South Africa and Papua New Guinea, and as such acquire a diverse risk portfolio with exposure in both countries via both gold and copper.

The development of the WafiGolpu exploration project, located in the Morobe Province of Papua New Guinea approximately 65 kilometres south-west of the port city of Lae, PNG’s industrial hub and second largest city, forms a central aspect of Harmony’s plans for growth. It is

a significant resource, containing an orebody measuring approximately five times the height of the Empire State building, and comprising 20.2 millions ounces of gold and 9.4 millions tonnes of copper. Owned by the Wafi-Golpu Joint Venture, it represents one of three unincorporated joint ventures between subsidiaries of Newcrest and Harmony Gold, a collective formed in 2008 and referred to as the Morobe Mining Joint Ventures (MMJV).

Mining in Papua New Guinea plays a similarly central role in life in the country as in South Africa, bringing

about 15% of the entire GDP and up to two thirds of export earnings. It is also incredibly important to technical training in PNG, the largest proportion of which stems from the mining and petroleum sectors, while formal employment in the sector exceeds 30 000. Currently, the Wafi-Golpu project includes the Golpu copper-gold porphyry deposit, the Nambonga copper-gold porphyry deposit and the Wafi high sulfidation epithermal gold deposit.

A world class porphyry deposit at Wafi-Golpu, known as the Golpu deposit, was unearthed via the deep drilling which has been conducted by the WGJV since 2008. Crucially, the deposit is suited to the bulk underground mining techniques such as those being employed by Newcrest at Cadia Valley Operations,

www.enterprise-africa.net / September 2015 / 31

BUSINESS PROFILE

//HARMONY WAS FIRST INCORPORATED AND REGISTERED AS A PUBLIC COMPANY IN SOUTH AFRICA IN AUGUST OF 1950// one of Australia’s largest gold mining operations. Golpu is just one of several porphyry ore bodies which have been identified along the 25 kilometre long Wafi-Transfer, a highly prospective terrain which Harmony and Newcrest are now actively exploring in the quest for additional deposits.

December 2014 brought the announcement that Newcrest and Harmony had given the go ahead to stage one of the Golpu project to proceed to its feasibility study, following the completion of an up-dated 2012 pre-feasibility study.

This updated PFS proposes a smaller, lower capital cost development of around US$2.3 billion for stage one of Golpu, with production expected to begin in the 2020 calendar year.

Stage 1 of the Golpu development targets the upper, higher value, section of the orebody, while work will continue on optimising a second

stage to encompass the rest of the ore reserves. The feasibility study for the first stage, alongside the updated prefeasibility study for the second stage of the project, are both scheduled to be completed by the end of this year. Graham Briggs, Harmony CEO, detailed the findings of these extensive studies. “The updated prefeasibility study sup-ports our view that Golpu is a spectacular ore body with a large copper component, affordable and mineable. Key objectives of the study have been achieved by reducing the capital of the project, lowering operating costs and improving the rate of return.” Also noted is that the development of the Golpu Project is exactly in line with Harmony’s strategy of profitable, low-cost operations: “The conclusion of the updated PFS is a major project milestone and has demonstrated the significant potential

32 / September 2015 / www.enterprise-africa.net

of this world-class orebody.”

With the twin aims of rehabilitating and cleaning up impacted land, and returning it to an agricultural state, Harmony is implementing a R47-million bioenergy pilot-scale project involving the growing of bio crops on mineimpacted land and tailings in the Free State. While renewable-energy applications in mining have been seen before, the combination of renewables with bioenergy and land rehabilitation serves to make this project unique.

The bio crops, namely giant king grass and sugar-beet, will be used as feedstock to generate natural gas, to be used in turn as a substitute for fossil fuels in the company’s Harmony 1 metallurgical plant, in place of polyfuel in the gold elution circuits.

Phase 1 of the project looks to deliver 71 000 GJ within the initial 18 month period, to increase to 187 000 GJ within the first 36 months. Graham Briggs summed up the project’s principal goals: “This project aims to turn mine-impacted land to account by creating a value-added use for

HARMONY GOLD

//GOLPU IS A SPECTACULAR ORE BODY WITH A LARGE, AFFORDABLE AND MINEABLE COPPER COMPONENT// it and, in so doing, promote skills development and job creation for communities and ensure a sustainable legacy in the Free State.” Among the chief benefits of this project is the reduction in the mine’s carbon footprint, thus reducing carbon taxes that the mine may incur.

Production for Harmony in 2014 stood at 1.17Moz of gold, placing it as its third largest producer in South Africa and the eleventh largest in the world. Not willing to merely enjoy these notable successes, Harmony is instead continuing to restructure its operations in order to secure longterm profitability. One arm of this is Harmony’s life-of-mine optimisation process, completed during the December 2014 quarter, which has resulted in a greater focus on mining the more profitable and higher grade areas of its South African operations, while removing lower grade and unprofitable areas from the mine plan.“We have responded to a lower gold price,” said Graham Briggs, “first by rationalising our assets and then restructuring our portfolio – cutting costs, reducing labour numbers and focusing on mining only safe, profitable ounces. We are assessing ways of funding Golpu and unlocking the true value of each of our assets, which will ensure shareholder returns in the long term.” This decision to restructure and optimise its operations will be central to ensuring that Harmony remains ever more profitable in its future operations, and diversification globally.

HARMONY GOLD +27 11 411 2000 corporate@harmony.co.za www.harmony.co.za

Over 125 years Aveng has evolved in character, capability and reach Aveng Duraset is a well-diversified supplier of engineered support solutions to the mining and geotechnical industries.

With very well established research and development facilities, manufacturing plants and commercial services for each of our market focused divisions; Aveng Duraset designs, manufactures and supplies a comprehensive range of safety critical niche products to the mining and civil engineering industries.

Typical products consist of: • Durapak and Grinpak a light weight cementitious stand up support for underground support.

• The Boss prop elongate which is designed to yield for 400mm • Mechanical end anchored yielding bolts • Resin bolts • Cable anchors with the patented Surelock® system.

Tel: +27 11 617 7000 | Fax: +27 11 864 1400

www.aveng.co.za

www.enterprise-africa.net / September 2015 / 33

REFRALINE

A Global

Customer Focus

PRODUCTION: Timothy Reeder

Refraline’s specialisms lie in the installation, repair and maintenance of refractory and corrosion solutions for a wide range of industries, among them iron and steel, chemical and petrochemical, and power generation. Managing Director Manfred Rosch talks us through the company’s operations, and its plans to extend its footprint throughout Africa and beyond.

www.enterprise-africa.net / Issue No.39 / 35

BUSINESS PROFILE

//

“At Refraline, we are a refractory engineering company,” summates Manfred Rosch, of the company with over 30 years of operational experience behind it. “We are installers, manufacturers and suppliers of refractory and corrosion materials and linings, based in Germiston, Johannesburg. We operate everywhere in South Africa, as well as in our neighbouring sub-Saharan countries like Namibia, Zimbabwe, Zambia and Botswana, alongside projects out in the Democratic Republic of Congo. We also do business in the Middle East, and in Madagascar, and we sometimes even work as far afield as in Asia and Australia, although these are not our regular territories.”

From its head office in Meadowdale, Germiston, Refraline’s reputation has been founded on the reliability, flexibility and fast response

36 / Issue No.39 / www.enterprise-africa.net

REFRALINE

of confidence, in the sense that our shareholders believed in investing back into their own company when the shares became available, and put up the money to purchase them.”

Refraline has developed high temperature materials to cover the full range of monolitics including Castables, Gunning, Ramming, Colloidal Silica Castables, Insulation Castables and Mortars. Our materials can be used up to 1800 deg C They are typically used in linings for furnaces, kilns and incinerators, while the corrosion scope of Refraline’s work comprises vessel such as acid towers and reactors, through to chimneys and corrosion resistant bricks and tiles for floors. “The key to our success,” explains Rosch, “is that we listen to our customers and develop products and installation techniques which will ultimately benefit them. We need to always challenge what we are

//WE HAVE GROWN TO BECOME A LEADING REFRACTORY ENGINEERING COMPANY IN OUR MARKET// times with which it completes its work, seeing it undertake numerous high-value contracts throughout sub-Saharan Africa. “When I look back to when Refraline started in 1981,” continues Rosch, “since then we have grown to become a leading refractory engineering company in our market. It is a market which is not really growing which means we really have to fight, and must simply be better than our competitors. The fact that we have continued growing into a company which today has 300 million Rand turnover and more than 500 permanent employees is a real sign that our

customers appreciate the service we offer to them.”

Manfred Rosch details how this confidence extends through the company’s dealings, with its reputation for peerless service bearing fruit in a scheme due to be completed this year, among its most notable successes of recent times. “Three years ago we started a buyback program to allow shares to be regained from the European entity Beroa, which by the end of the year will be complete.

The result of this is that Refraline will be 100% South African owned. For us as management this was a vote

& The C&H Group was established in 1983 by Dr John Hancock and Dr John Cannon.

The group specialises in solving refractory problems using innovative services and products. The following companies and services are listed in the C&H Group:

MANUFACTURING

Specialised Refractory Material

CHB

3rd Party Refractory Inspectorate CHB conduct Refractory and Corrosion and Coating Inspections and Consultancy.

CHB frequently assist clients with refractory failure investigations, shutdown planning and maintenance inspections.

CHB also provide in-house refractory training courses.

C&H Laboratories

Refractory Testing & RnD Solving customer problems with advanced technology. Research and development of specialised refractory products, such as Actchem and Actsil ranges.

Technology licensed to ACT Manufacturing in South Africa and to its partners worldwide.

ACT Manufacturing

Specialized Refractory Manufacturing Specialized Refractory Manufacturing. Using high quality raw materials and thorough testing, our materials offer superior performance and consistent results.

Burg Refractories

Burg Refractories

Manufacture of Pre-Cast Shapes Independent company specialising in the Manufacture of Refractory Precast Shapes.

Holds the exclusive licence from C&H Laboratories for Acid and Alkaline Resistant Monolithic Products in South Africa.

C&H Group, South Africa | Kim Mason + 27 16 9712678 | Email: chlabs@mweb.co.za www.actchem.com | www.chbinspection.com | www.refractorytraining.com | www.burg-refractories.co.za

www.enterprise-africa.net / Issue No.39 / 37

BUSINESS PROFILE

doing and improve on what we did last time.” One example is the environmental friendly taphole clay that we have developed to improve the working conditions of our clients workers who are using this product. Our clay does not contain any tar that burns of nasty volatiles which are causing a health risk.

The dual aspects of Refraline’s business affords a certain security, and allows the accrual of expertise in a variety of operations. “We have our two main fields of operation whereby refractories account for around 75% of our business, alongside the remaining 25% in corrosion linings. This split allows us to weather some storms, because in some years we have more success on the refractory side, while in other years the corrosion linings will perform better.”

“In this sense we have some diversification within our field, and our performance over the last couple of years has been highly pleasing.”

This has not been easy to achieve, as Rosch details: “Even at the moment the commodities are in something of a ‘slow down’, with our customers really

38 / Issue No.39 / www.enterprise-africa.net

REFRALINE

//WE LISTEN TO OUR CUSTOMERS AND DEVELOP PRODUCTS TO BENEFIT THEM// having to watch every cent that they spend, but as long as we can offer them the right product at the right price as well as solutions which end up bringing their overall plant cost down, they will continue to do business with us.”

Refraline is placed to handle several refractory contracts simultaneously, using its own sophisticated techniques and specialised construction equipment to fulfil all manner of jobs. For example, in removing the linings of kilns and ladles the company can boast remotecontrolled Brokk MB 330 and MB 150 demolishing machines, which serve to significantly reduce downtime alongside increasing productivity and providing heightened safety. It

has access to much other world-class equipment, such as the hydraulically operated, telescopic, rough terrain forklifts which deliver refractory materials to otherwise inaccessible locations, as well as special mixing and pneumatic conveying machinery and pneumatically operated bricking rigs.

In an industry as fast moving and ever-developing as this, Rosch explains that, “there are new technologies constantly appearing and we have to stay on top of new trends and materials.

We evaluate them constantly to see if they would benefit our customers, and, if so, we will welcome them.” Refraline also clearly sees the importance of bringing its own products and ideas

SPECIALIST IN GLASSTANK HEATING IN-SITU REFRACTORY DRY-OUT & CURING,

POST WELD HEAT TREATMENT P.O.BOX 8494, PUTFONTEIN 1513, REPUBLIC OF SOUTH AFRICA TEL: (011) 968 - 9865 | FAX: (011) 969 - 1629 | CELL: 082 - 458 - 7769 Email: heatups@mtnloaded.co.za

www.enterprise-africa.net / Issue No.39 / 39

BUSINESS PROFILE

to the market, the impact of which on its business Rosch details. “We began manufacturing our own monolithic refractory material two years ago, and we’ve gained significantly more market share in this,” he states. “While the company is 30 years old we have only recently started manufacturing our own monolithics, so to gain such a market share in the field is very satisfying. We’ve developed a number of new products and challenged many practices, and as such we can offer better solutions to our customers which ultimately serve to improve the overall performance of their plant. That is our focus.”

This customer-centric approach is among the core facets of Refraline’s ethos, and has been responsible for

a large art of its continued success since its inception. “We concentrate on our customer. People place a lot of confidence in us to fulfil their refractory services, and we have shown over the years that we can deliver good service at a competitive price. We always aim to look at the bigger picture in a client - it’s not always important how much someone pays for a refractory product, but how much that product can bring the plant availability up and the overall plant costs down.”

The weight of its collective experience has seen Refraline undertake jobs ever further afield, which becomes increasingly pertinent as Rosch lays out the current state of play within South Africa. “The industry at the moment is

40 / Issue No.39 / www.enterprise-africa.net

in something of a stagnant phase,” he admits. “There is no real growth coming through. In South Africa in particular we have our own challenges with some of our customers having to switch off capacity, as there is not enough electricity to power operations. These things then combine to have an impact on the overall growth of the industry.”

“There are always opportunities for us, but none of our competitors are sleeping,” he points out, “so we have to constantly reinvent ourselves and deliver quick service to make our customers happy with what we offer. We have many, many customers that have used us for ten, or even fifteen years, which indicates that we are already doing many things right within the field.”

REFRALINE

//WE HAVE MANY PROJECTS WHERE WE CAN SHOW OUR CAPABILITIES IN OTHER PARTS OF THE WORLD// The reputation it has earned and this tireless approach to expansion has already reaped significant rewards, as Rosch details just one aspect of Refraline’s global outlook. “We have secured a contract in Malaysia, a venture that we are taking on with a Malaysian refractory installation company. This will see us build two submerged arc furnaces for a South African vendor with whom we have already been working for over fifteen years, prompting them to give us their vote of confidence to

build their furnaces in Malaysia. These are exciting projects for us where we can show our capabilities in other parts of the world.”

“We have to focus on finding growth for the company outside of the South African market,” says Rosch of the company’s plans going forward, “developing further into other African countries, and building further on the first installation we have completed in the Malaysian market. We constantly have to look at other markets and see

what they can offer us, given the state of play in South Africa. We’ve been very successful in the DRC over the last four years, and we will head back there in the next couple of months to complete more projects. We feel that even countries like Zambia and Namibia hold promise for us, and we are really focusing on getting as much as we can from these territories.”

REFRALINE +27 (0)11 392 0700 info@refraline.com www.refraline.com

www.enterprise-africa.net / Issue No.39 / 41

STADIUM MANAGEMENT SOUTH AFRICA

The Masters of

Ceremonies PRODUCTION: Timothy Reeder

Stadium Management South Africa was appointed to independently administer the country’s FNB, Orlando, Dobsonville and Rand stadiums by the City of Johannesburg in 2009. SMSA independently manages and funds the commercial business of these multi-purpose venues, playing host to world class events from football and rugby matches, concerts and festivals to political rallies.

42 / September 2015 / www.enterprise-africa.net

BUSINESS PROFILE

CHIEF EXECUTIVE OFFICER JACQUES GROBBELAAR

//

These stadia under SMSA’s stewardship are governmentowned venues, which are privately and independently administered by SMSA on a full financial risk basis. This means that SMSA is precluded from receiving any management fee, subsidy or grant in its running. Managing these multi-million rand venues therefore requires SMSA to have mastery of services across a range industries including finance and commerce, operations and facilities management and event planning.

Behind SMSA’s operations is its trio of co-owners: Jacques Grobbelaar, Barry Pollen and Russell Stephens.

Between them, the directors have accrued decades of experience in the event, construction and financial sectors of the industry, with Chief Executive Officer Jacques Grobbelaar describing the company’s current position in the country. “As Stadium Management South Africa we have established ourselves as the leading stadium

management company in South Africa due to our sustainable, profitable and successful business model following the 2010 FIFA World Cup South Africa ™. We were determined not to allow any of the stadiums under our banner turn into white elephants in its wake, and so we have been delivering on all aspects with a sustainable and profitable 10-year plan that does not burden the taxpayer.”

This success of this plan was achieved through securing long-term tenancy agreements with South Africa’s biggest and most popular sports teams, namely Kaizer Chief FC, Orlando Pirates FC and Moroka Swallows FC. These came via strategic agreements with the Premier Soccer League to host its biggest matches and, equally, through

its partnership with South Africa’s largest promoter, Big Concerts. “We have a team of highly qualified, experienced and knowledgeable individuals,” Grobbelaar continues, “which is capable of producing results and solutions for both the short- and long-term to clients in all corners of the globe through our extensive service offerings. We have offices in South Africa, the United Kingdom and in the United States of America and offer personal, tailor-made solutions to suit all our clients’ needs and wants.”

“Stadium Management South Africa is South Africa’s leading stadium management group and fields the most dynamic and capable team in the country to manage flagship sporting venues.”

//WE HAVE A TEAM OF HIGHLY QUALIFIED, EXPERIENCED AND KNOWLEDGEABLE INDIVIDUALS//

44 / September 2015 / www.enterprise-africa.net

STADIUM MANAGEMENT SOUTH AFRICA

//WE STRIVE TO DELIVER SOLUTIONS THAT MAXIMISE CLIENTS’ OPPORTUNITIES FOR VENUES OR EVENTS// As he goes on to explain, Stadium Management South Africa has a clear mission statement behind what it seeks to achieve. “We strive to deliver solutions that allow our clients to maximise opportunities for their venues or events by leveraging all available channels to deliver clear and tangible benefits. We strive to understand our stakeholders, their ambitions and objectives and match these with geographic, business and demographic opportunities. We also pride ourselves on matching their ambition with requirements and commercial viability.”

The adaptability both of SMSA as a company and of the stadia it manages affords it the ability to offer the full range of venue options, which can be tailored to be suitable for a host of different events. This has, in large part, seen it play host to some events of colossal scope, featuring many of the world’s most notable acts, among them One Direction, Rihanna, Justin Bieber and even the legendary Bruce Springsteen. Other highlights from its vast portfolio from the past year range from providing the venue for the legendary Bafana Bafana vs.

Zambia fixture, the Shell V-Power

Nitro+ Festival and the hugely important Nelson Mandela National Memorial Service.

According to Jacques Grobbelaar, among SMSA’s real success stories over the past year has been on the Black Economic Empowerment side of the business. “First of all, we have been very successful in meeting a number of key transformation milestones,” he says. “We established a transformation department that’s primarily focused on the company’s transformation and empowering strategies.” This has brought with it a tremendous increase in the company’s BEE achievement, improved by more than 40% in the space of a year and now seeing it boast the Level 4 Broad Based BEE Status Level.

“We have a workforce of 55 permanent employees, which is currently representative of more than 80% of the designated group, and 50%

Gauteng Tel: (014) 576 1925 • Fax: (014) 576 1038 info@greenacreslandscapes.co.za • www.greenacreslandscapes.co.za

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

BUSINESS PROFILE

of this is on a management level. Our Board of Directors is also more than 50% represented by employees from the designated group,” Grobbelaar expands. Additionally to this transformation, Stadium Management South Africa maintains a continuous commitment to creating enterprise opportunities and empowering the communities in which it exists.

“We established our community cleaning project in August 2013,” he states, “which has created in excess of 14 000 jobs in the communities surrounding our stadiums. We saw this as an opportunity to significantly improve the lives of the people living in the communities surrounding our four stadiums. The mission of this project is to alleviate unemployment by employing community members

to assist in the cleaning of our stadiums during all events which take place there.”

The long term objective of this project is to assist the teams of community cleaners in establishing their own cleaning businesses, which SMSA will then in turn use as a service provider for stadium cleaning during its own events. To date this project has experienced real, quantifiable success, creating in excess of 14 000 jobs and seeing SMSA invest more than R 3.3 million in sustaining the endeavour.

Jacques Grobbelaar puts SMSA’s success to date down to its faultless attention to detail, ensuring that effective and solid foundations are first in place to allow everything else to then be added. “We focus on the absolute core of the business and build it from

46 / September 2015 / www.enterprise-africa.net

there, concentrating on each individual aspect, no matter how small, and determining how it integrates with the other elements within the business. A sustained focus on the basics is key, as this is what influences the bigger things within the business. Business standards, policies and procedures is what should drive a business.”

This focus now shifts to the future, and the approaches which will allow SMSA to further cement its status at the forefront of the market. This will have much to do with the staff who carry out its services, as Grobbelaar explains. “The key to improve our future performance,” he says, “is to find and appoint the right people, with the right skills set and the right emotional intelligence, and then manage their in-post training and development and

STADIUM MANAGEMENT SOUTH AFRICA

//OUR EMPLOYEES MUST BELIEVE IN TRANSFORMATION AND EMPOWERMENT OF THEMSELVES AND THE BUSINESS AS A WHOLE// transfer their theoretical knowledge into practical skills. We need to get them to believe in transformation and empowerment of themselves and the business as a whole.”

Buying into the whole ethos of Stadium Management South Africa in turn brings significant benefits to the individual, as he goes on to delineate. “We make our employees feel valued and part of a family.

We create an empowering work environment and provide tangible career development opportunities.

We have established an Employee

Shareholders Scheme, whereby employees are actual shareholders of the business and receive the profit share that comes along with their shareholding. We also believe in paying well above market related salaries for the quality employees we employ within the company.”

It is the holistic nature of its business and the heavy focus it places on such elements of its work which will help drive SMSA to even greater heights, as Grobbelaar explains: “We would like to take the transformation achievements we

already have in place and hit the next level within and outside our business.

We will be focusing on further development of our employees through skills transfer and a number of additional aspects, and partnering with some of our key stakeholders to decrease unemployment in the communities surrounding the stadiums, by creating sustainable business opportunities for the community members.”

STADIUM MANAGEMENT SOUTH AFRICA +27 11 247 5300 www.stadiummanagement.co.za

www.enterprise-africa.net / September 2015 / 47

KUMBA IRON ORE

The Iron

Giants PRODUCTION: Emily Ayson

Whilst Kumba Iron Ore may not be a household name for us, there is a high probability that our homes contain products or are located close by to structures that are made with the iron ore that this company source. Offering a truly superior product to their ever-expanding customer base, Enterprise Africa dig around to find out just what it is that Kumba are doing right.

//

During his time as CEO of Kumba Iron Ore, Norman Mbazima has guided his company into the realms of prosperity and international renown. In a 2013 interview, Mr Mbazima alludes to how such leadership skills were honed during his childhood, stating that ‘a family as big as mine…we had to be close knit! We learnt how to share…how to work as a team. We also needed a leader…I was able to change my position in the family when it was required, to offer guidance and support’. In 2014 alone, Kumba had a workforce of 14,040, produced 48.2Mt of material and achieved an operating profit of around R19.2bn. Thus, it seems evident that overseeing operations of a

company with such a high reputation and presence is something that Mr Mbazima has been nurtured to do At a glance, Kumba Iron Ore is just like all other burgeoning businesses in South Africa, working hard to sate the demands of its customers and turn a profit for its shareholders.

Predominantly owned by one of the largest mining companies in the world, Anglo American, Kumba is the largest enterprise of its kind in the whole of South Africa and they themselves hold the majority share in another successful mining operation, the Sishen Iron Ore Company (SIOC). With various factions of the business spread between Gauteng, the Northern Cape and Limpopo provinces and Saldanha

48 / September 2015 / www.enterprise-africa.net

BUSINESS PROFILE

KUMBA IRON ORE

SISHEN MINE

Bay, the company have extended their presence and reach throughout the country. However it is not just South Africa in which Kumba are known, with international companies in Asia, Europe, the Middle East and India flocking to them to do business. Whilst this may seem like a smooth operation, Kumba have not been without their challenges. The mining strikes of 2012 greatly affected productivity for obvious reasons and even more recently, the catastrophic crash in iron ore prices and subsequent 13% revenue loss led to a 40% reduction of Head Office staff at Kumba. Yet, regardless of these hurdles, the company have soldiered on, providing South Africa, and the world, with iron ore. On average, 11% of Kumba’s product remains in the country with the other 89% being sent abroad, which has is in large part facilitated by the drastic drop in freight rates. Interestingly, 55% of total sales in 2014 were entirely to Chinese businesses, highlighting the lengths some companies will stretch to in order to obtain Kumba’s wares.

In general, the importance of iron ore should never be underestimated; Kumba predominantly supply this raw material to the steel industry, who in turn provide components for the construction and automotive spheres amongst others. Iron ore is also used by the pharmaceutical, cosmetic and paint industries and so one can begin to see how ubiquitous and in-demand such a substance is in our everyday lives. As such, Kumba make huge efforts to ensure that the end product that reaches the customer is of superior quality. They hire engineers and geologists to design and maintain their mines, resulting in ore that is both high in actual iron content and breaks up less

//IN 2014 ALONE, KUMBA HAD A WORKFORCE OF 14,040, PRODUCED 48.2MT OF MATERIAL AND ACHIEVED AN OPERATING PROFIT OF AROUND R19.2BN//

in transit so that customers get more content for their cash. Furthermore, they can get ore from mine to port in just 9 hours via their dedicated rail link, the Sishen/Kolomela-Saldanha Iron Ore Export Link, offloading 10,000 tons per hour onto ships to be sent all around the globe. Clearly, Kumba as a business is a well-oiled machine and it seems that they really do live up to their mantra that ‘Our company exists to make a real difference for everyone whose lives we touch’. Obviously, proffering a good that is highly sought after is a good start for any business, but the real key cogs of this machine are the people behind Kumba – a sentiment foregrounded by Mr Mbazima in 2013 when he stated that his favourite part of working for Kumba was ‘[the] people’.

As a business head, Mr Mbazima distinctly values his employees and he runs a company that is staunchly dedicated to employee equality, skills development, education and wellbeing.

Of the 14,040 employees, 8191 of these are on permanent contract, 4987 are external contractors from allied industries and companies and 869 are on learnerships, a scheme which cost the company a reported R73.3 million.

86% of staff are drawn from local areas with an average tenure of 10 years.

Women comprise 19% of the general workforce, 13% of core mining positions and 20% management positions.

Kumba are also dedicated to ensuring that women have the appropriate facilities, receive development and mentoring training and are offered a safe environment to work in; there have been no reported cases of sexual harassment to date. Throughout their careers at Kumba, employees are offered free counselling for personal issues, fatigue management education and medical testing for diseases such as HIV and TB, which has been utilised by in excess of 90% of staff.

This privilege is also extended to their dependents and external contractors may also take advantage of these schemes. Furthermore, staff are offered Continues on page 54

www.enterprise-africa.net / September 2015 / 51

//SAAB GRINTEK DEFENCE TO CUSTOMISE MOBILE MEDICAL SYSTEMS FOR LEADING SA MINE In October this year, Saab Grintek Defence (SGD) will provide a mobile medical clinic system to Anglo American’s Kumba Iron Ore business unit in the Northern Cape Province, to extend basic medical services to the company’s employees, contractors and the host communities, for early diagnosis and management of occupational diseases, as well as preventing exposure to hazards that could lead to occupational illness. This will allow access to medical services for the people located in environments where there’s limited access to healthcare.

The mining industry is responsible for the majority of employment in South Africa, drawing its work force from people living near the mines, in rural communities. As mines are built in remote locations, medical attention is not easily accessible to workers.

Once the system is developed and set up, mineworkers at the Kumba Iron Ore business unit will have instant access to clinic services and skills of doctors, dentists, optometrists and pharmacists. The clinic will also provide basic operating theatre services.

//THE MINING INDUSTRY IS RESPONSIBLE FOR THE MAJORITY OF EMPLOYMENT IN SOUTH AFRICA//

52 / September 2015 / www.enterprise-africa.net

Mine workers and other members of the community who fall ill, injure themselves or require regular check-ups or medication, can visit the clinic to receive the medical attention they need.

The system developed by Saab Grintek Defence (SGD) consists of several containers that are moved around by trucks and trailers to form a configuration of rooms where medical services can be rendered.

Drawing from its experience in integrating systems, SGD has designed its mobile medical clinic to withstand the tough off-road conditions that are typical of Kumba’s operations. The clinic is sufficiently mobile to move between the mine’s four sites in the Sishen area.

While this project sees SGD’s Mobile Deployable Solutions converted into a mobile clinic, the system can also be customised to create workshops, life support facilities, command centres and mission support systems.

The project is closely related to the social development initiatives led by the Anglo American mining group, with the solution being suited to other sectors of mining where production sites are far away from essential health and welfare services, such as the oil and gas sectors. www.saab.con

MISSION-TAILORED FIELD SOLUTIONS FOR MEDICAL CARE FACILITIES

MOBILE FIELD HOSPITALS Saab Grintek Defence can support you every step of the way in deploying temporary medical care centres for surgical teams or dental care units in camps or other areas. We provide the medical equipment and the mobile modules required to build your field hospital, including transportation.

The Saab Mobile Field Hospital is a battle-proven modular system built with a network of containers and tents. The modules are positioned depending on usage and logistics and then connected to each other by tent corridors. Consideration is taken of sterile zones and the provision of a safe and efficient work environment, putting staff and patient needs into focus.

It is a modular, deployable and flexible solution that can be mission-tailored to suit specific tasks and climate conditions. It is designed for optimum use in remote field conditions, providing round-the-clock care when time is critical. Saab Grintek Defence offers a complete solution accompanied by a committed support concept ensuring high availability and reliability.

Saab Grintek Defence provides mission-tailored medical care solutions, from light portable resuscitation units to complete field hospitals. Adapted to fit the individual requirements of any task, our solutions use proven technology to cater for a wide range of peacekeeping applications, and are ideally suited to the demands of remote and challenging areas.

Modular, Flexible & Mission-Tailored.

www.saab.com

BUSINESS PROFILE

custom made hearing protection devices if they are to be exposed to noise levels exceeding certain levels and the company even invested R9.5 million to expand a local district hospital in Postmaburg’s where many employees reside. The company also hosts the annual ‘Laurel Awards’, in which employees are recognised and commended for their hard work and achievements.

Staff safety is also of paramount importance to Kumba, and they report that they have only ever had one fatality. Rather touchingly, in a 2014 report which can be found on the company’s website, Mr Mbazima dedicates a proportionate section to acknowledging this tragic employee death and vows to further improve safety so that it may never happen

again. In particular, under their ‘Snakes Alive’ scheme, Kumba endeavour to ‘find the snakes before they bite us’; employees are encouraged to report and situation or conditions that may lead to untoward circumstances and staff are continually trained in risk identification. According to Mr Mbazima, such implementations are all in the name of building trust in his employees and ensuring that staff can ‘feel secure and knowledgeable about their working environment…[and]… feel confident in communicating to management at any level’. This sentiment is echoed in a recent strategy undertaken by Kumba, in which they will be working closely alongside Exxaro, a 52% black owned company hat have a 19% stake in Kumba. Their 10 year contract with

54 / September 2015 / www.enterprise-africa.net

major shareholder, Mainstreet 333 expires in 2016 and so the future of Exxaro is in some turmoil. However, with a staunch dedication to Black Economic Empowerment, Mr Mbazima has vowed that Kumba will do ‘everything in its power’ to ensure that black employees of Exxaro maintain their jobs, extrapolating his care beyond the borders of his direct employment. Furthermore, such borders are breached for all shareholders of Kumba; Govermental/ Political Groups, Civil Society, Businesses, Customers and the Media; according to their website, the company believes that ‘No-one is on their own. We’re a company with a joint ambition – all working together to make decisions and get things done more effectively’. Such

KUMBA IRON ORE

KOLOMELA IRON ORE MINE

//OUR COMPANY EXISTS TO MAKE A REAL DIFFERENCE FOR EVERYONE WHOSE LIVES WE TOUCH// dedication clearly resonates with Mr Mzabima’s family orientated drive to foster a safe, close-knit environment for all associated with his company.

Consequently, it is no wonder that Kumba consistently appears in lists from the Top Employees Institute.

However, perhaps the most significant faction of the business which is also treated with great respect is the very source of Kumba’s wares; the earth and environment. The company are committed to ensuring that they

rehabilitate as much of their mining areas as possible once they are no longer in use. In place are schemes to reduce emissions of harmful greenhouse gasses and there are also protocols in place to save and reuse water. In the Kolomela mine, one of three mines Kumba currently operate in, the Aquifer Recharge Project is ensuring that ground water extracted for initial mining is returned, a scheme Kumba are also hoping to introduce this in their Sishen mine. Furthermore, the company

have even commissioned new drills which not only reduce noise pollution but also decrease the amount of dust created by machines.

Overall, through providing such a superior product, demonstrating a staunch commitment to staff wellbeing and a dedication to sustainable mining, it is no wonder that Kumba are receiving attention and business on a global scale.

Although already the fourth largest iron-ore producer in existence, the company certainly look set to become the Iron Giants of the world.

KUMBA IRON ORE 012 622 7000/7111 www.angloamericankumba.com

www.enterprise-africa.net / September 2015 / 55

BULLDOG PROJECTS

Bringing

Power to the People

PRODUCTION: Emily Ayson

Over the past eleven years, Bulldog Projects have worked tirelessly to become one of the leading providers of corrosion protection to the construction industry in South Africa. Offering rehabilitation and maintenance of existing petrol chemical plants, gas pipelines, railways and mines, Bulldog have a staunch dedication to excelling and expanding within their particular field. In the coming months, the company has their sight set on foraying into the area of power generation, bringing sustainable and reliable energy to South Africa and beyond.

Enterprise Africa talks to CEO and founder, Mike Book to find out more.

www.enterprise-africa.net / September 2015 / 57

BUSINESS PROFILE

//

As the construction industry in South Africa exponentially develops and diversifies, the demand and desire for products and services that can facilitate this growth is at an all-time high. Once the design and fabrication stages of any construction project have been completed, attention must turn to the protection and longevity of building components – the precise juncture at which Bulldog Projects step into the spotlight. Specialising in pipe, tank lining and heavy duty coatings, abrasive blasting and epoxy flooring among other things, Bulldog are among the leading echelons of corrosion protection companies in South Africa. Before founding

Bulldog, Founder and CEO Mr Book has 44 years of industry experience under his belt, having worked on a multiplicity of projects and sectors across the country. However, in May 2004, living by the adage that ‘boardrooms are for when you are bored’, Mr Book decided to personally create and take the helm of his own company. With his 100% stake ensuring that he has full control, Mr Book has successfully navigated his company through the highly competitive and often uncertain marketplace. As such, without hesitation Mr Book is proud to assert that he believes that his business ranks among the top 5 corrosion protection companies in the country;

58 / September 2015 / www.enterprise-africa.net

an impressive feat considering that Bulldog are privately owned and so must strive to compete with the large and affluent corporate listed companies that monopolise the construction industry.

However, being a small fish in a big pond is not the only challenge that Bulldog have had to face. Throughout the years Bulldog have faced their fair share of difficulties, but these have been met and overcome with genuine enthusiasm and determination to succeed. Mr Book declares that the 2014 was ‘probably the toughest year I’ve had in the 11 years of Bulldog’, citing the mine and steel fabricator closures, labour unrest and the ripples of the global recession as contributing

BULLDOG PROJECTS

//OUR PURSUIT OF EXCELLENCE IS A COMMITMENT, NOT A BADGE OF ACHIEVEMENT// factors. He states that over the last 12 months, the construction industry has seen some turmoil and so ‘from an investor’s point of view, it’s seen as high risk investing in projects in South Africa’. He also attributes the cautiousness of investment to the fact that although there is a real drive for Black Empowerment across the country, many educated black citizens tend to shy away from subsidizing

within sectors that fluctuate between stability and uncertainty.

However, undeterred by such a barrage of difficulties, Mr Book is pleased to say that the company are performing very well at the moment, with an order book that will see them through to the end of next year and a company currently working consistently at 70% capacity. Even finding a silver lining with the troubles faced by the

South African steel industry, Mr Book says it would be the patriotic thing to say that he wishes less material had to be imported from China, but simultaneously, irrespective of source, steel needs protective coating and this is precisely the service he can provide.

Up until 2013 Bulldog applied corrosion protection systems to approximately 5000 – 7500 tonnes of material per month and they are currently operating with around 500 qualified staff members. Mr Book expects this number to increase over the next few years, as their workload increases and the construction industry as a whole begins to flourish a little more. Bulldog are also extrapolating their presence throughout Africa; Their base is in Johannesburg,

www.enterprise-africa.net / September 2015 / 59

BUSINESS PROFILE

//WITHOUT HESITATION MR BOOK IS PROUD TO ASSERT THAT HE BELIEVES THAT HIS BUSINESS RANKS AMONG THE TOP 5 CORROSION PROTECTION COMPANIES IN THE COUNTRY// operations also take place in Zambia and Tanzania, business registration is occurring in Mozambique and Namibia and they are also heavily involved with projects in The Democratic Republic of Congo (DRC) and Ghana. As Mr Book notes, before Bulldog began carving out their niche, they would very often ‘piggy-back’ into these countries off the coattails of other corporations, but their increasing success and reputation means that they can now foray into these territories alone and show Africa just what they are capable of.

Already having made contributions to a number of large scale projects including the Medupi Kusile Power Station, the Congolese Copper Cobalt

Mines and the Nseke Hydroelectric Power Plant (a R58 million scheme which will finished next month), Bulldog are already beginning to venture into a new arena; power generation.

As the oil and gas industries rapidly grow in South Africa, Bulldog are striving to be at the forefront of this shift. Mr Book notes how there are water shortages, not enough dams and a lack of well-maintained gas and water pipelines throughout the country and that this provides a huge opportunity for his company to aid in the rehabilitation of existing power plants and the development of new plants. Furthermore, it is not just oil and gas that Bulldog wish to deal

60 / September 2015 / www.enterprise-africa.net

with, they will also be looking into the construction of solar farms and windmills, bringing sustainable energy to Africa. For Mr Book with these new avenues, ‘the sky’s the limit’, so much so that in fact he muses that in bringing power to the far reaches of Africa, ‘I’ll never see the end of what I started’.

Such an admission is testament to the sheer scale of the whole scheme and indeed to the magnitude of Mr Book’s passion for success and devotion to his work, attributes undoubtedly shared by his daughters who will take over both the power project and the company when Mr Book retires. In this respect, Bulldog certainly seem to live up to their company motto that ‘our pursuit of excellence is a commitment, not a badge of achievement’, with their dedication not only spanning years, but generations too.

However, it is not just Mr Book and Bulldog that will benefit from this power generation venture. A paramount component of the Bulldog machine

BULLDOG PROJECTS

//IT IS NOT JUST OIL AND GAS THAT BULLDOG WISH TO DEAL WITH, THEY WILL ALSO BE LOOKING INTO THE CONSTRUCTION OF SOLAR FARMS AND WINDMILLS// is the staff and the company have measures in place to ensure that their employees are not only experts in what they do, but that they are also receive superior training and development opportunities. The company has an excellent safety record and one of their key tenets is to ensure that those in their employ always have a ‘safe, clean and forthcoming workplace’. Bulldog also constantly endeavours to hire and train local people for their projects. Mr Book states that ‘we train them…and when we leave the area we actually leave the skills to continue the service and the maintenance’. As such, not only do

Bulldog provide jobs and knowledge, they also help Africans to manage and contribute to their own infrastructures and economies on a more long-term scale. The example Mr Book uses to illustrate this point it the DRC schemes, in which the 100% Congolese staff were trained by 2 – 3 expert Bulldog managers to such a standard that once the project was over, they were able to take over the premises and several of them even later became senior managers themselves.

With an already packed roster and huge projects on the horizon, unquestionably the future for Bulldog

Projects looks set to be a bright and prosperous one. For a burgeoning company within a highly competitive and often turbulent industry and marketplace, Bulldog have certainly demonstrated a proactive, intelligent and fearless approach to meeting challenges. As a company head, Mike Book clearly takes great pride in the business, its reputation, its work and the welfare of both staff and the wider populace. Thus, in all respects, Bulldog Projects are undeniably bringing power to the people of South Africa and beyond.

BULLDOG PROJECTS +27 (0) 11 825 1070 info@bulldogprojects.co.za www.bulldogprojects.co.za

The high perfo rmance, durab ilit y and reliabi is key to boost lity of equipme ing productiv nt ity on construct Portable Power, ion sites. At Do our compresso osan rs, generators are designed and lighting sys and rigorously tem s tested to ensure operation on they give outst the toughest site anding s and in the mo around the wo st extreme con rld. Our ingenu dit ion s ity, innovation and ser vice make steadfast custom us the coolest, hottest name er in portable po wer today.

doosansa.co.za

Doosan Inter

natio

nal South Afric 9 Liebenberg a Pty Ltd Road - Alrode - Gauteng - Sou tel. +27 11 864 th Africa 75 74 - sales. sa@ do osan.com cell. 082 377 750 9

Advert DPP_Family & Compressors_A_210x148.5_30-10-2013.indd 5

31/10/2013 08:32:11

www.enterprise-africa.net / September 2015 / 61

FORESTRY SA

Promoting Growth

Together PRODUCTION: Timothy Reeder

With the purpose of representing timber growers in South Africa, Forestry South Africa (FSA) is both South Africa’s foremost and largest forestry organisation, numbering among its membership all 11 corporate forestry companies active today in the Industry. It seeks to enhance long term sustainability and profitability while promoting the growth and development of forestry in the country.

//

FSA has something of a dual aim informing its actions, namely to represent the best interest of all its members and those of the South African Forestry Industry.

Its status as the definitive body representing the industry accounts for its large and representative membership base, giving members not only a powerful collective voice, but also allowing them to benefit from FSA’s own lobbying actions and from the result of industry based interventions. This might include research, or indeed forest protection.

The forestry sector in South Africa is among its most important. It employs around 165 900 workers, providing in the region of 62 700 direct jobs as well as 30 000 indirect jobs. The resultant livelihoods provide support to some 652 000 people in the country’s rural population, while some 20 000 workers are employed in sawmilling alongside 2

200 in the mining timber industries. In correlation with these figures, the land use of the sector is significant, with an afforested area of nearly 1.3 million ha equating to around 1% of the entire South African land area.

Forestry and associated products make an apt contribution of about 1% to the South African GDP, with forestry in KwaZulu-Natal leading the way regionally with 4.4%, followed by Mpumalanga’s 3,7% and 0.6% in both the Eastern Cape and Limpopo. The Department of Agriculture, Forestry and Fisheries, or DAFF, has created the Forestry Livelihoods Programme to eradicate poverty through the provision of firewood, construction poles, medicinal plants and edible fruits, all of which are critical to the livelihoods of the rural poor.

Afforestation in South Africa is taking place in rural areas where it remains unfeasible to offer alternative

62 / September 2015 / www.enterprise-africa.net

BUSINESS PROFILE

opportunities for job creation and economic growth. In turn, developing these additional raw material resources will have the effect of attracting greater processing capacity through sawmills, board mills, chipping and treatment plants, with such plantations potentially able to generate an additional R500 million per year. In keeping with this focus on development, among FSA’s core objectives is to bring the emerging, small scale timber grower sector into the wider market and mainstream of forestry activities by joining the Association.

FSA’s members consists of approximately 1 300 commercial timber farmers and some 20 000 emergent small scale growers, between them owning or controlling 93% of the country’s total plantation area. The structure of the Association is designed to best serve its membership, with three separate and distinct entities existing under the umbrella of its overall Executive Committee. These are the Large, Medium and Small Growers Groups, catering for corporate timber growers,

commercial timber farmers and emergent timber growers respectively.

There are several key objectives at play here, a large part of which are geared toward creating a unity of purpose amongst its diverse members, growers of all commercial tree species. As such, it seeks to promote the development and well-being of the South African Forestry Industry in the country and beyond, as well as the commercial production and usage of timber and forest products in an environmentally sound manner and the use of natural resources without detriment to their long-term sustainability.

Concerns around sustainability are ever more crucial to the future of the forestry industry. Despite forests’ essential role in life on earth, half the world’s forest cover has been lost in the last 50 years and only 7% of the remaining forests are protected. The National Forests Act of 1998 and the Forestry Laws Amendment Act of 2005 set out the vision for the future of forestry in South Africa. The emphasis is

64 / September 2015 / www.enterprise-africa.net

on sustainable forest management, and how people and communities can use forests without destroying them. They provide rules for protecting indigenous forests and ensure that the public can access state-forest land for recreational, cultural, spiritual and educational purposes. South Africa contains a rich spread of more than 1 700 tree and shrub species, with some threatened, and 47 species protected under the Act. David Everard, divisional environmental manager at Sappi Forests and chairman of Forestry South Africa’s environmental management committee, says that narrow-sense sustainability concerns the industry’s ability to grow trees and provide timber for the market as it requires without adversely impacting on future generations, while broad-sense sustainability applies to issues of how to manage plantations and their impact on the environment.

He says that if one looks at longterm sustainability, one finds yields are increasing, for the reasons that, “we are growing better trees through choice of the more vigorous and suitable genetics

FORESTRY SA

//WE ARE GROWING BETTER TREES THROUGH CHOICE OF THE MORE VIGOROUS AND SUITABLE GENETICS// and improving silviculture — the way we look after the trees, plant them and remove weeds.” However, from a broadsense perspective, forestry still faces a number of issues.

“First, there is a general perception that forestry guzzles water. The truth is eucalyptus trees do use more water than the vegetation they replace, but they are also extremely efficient waterusage trees providing more timber per litre of water than any other tree. South African forestry timber plantations are also in the process of withdrawing from all wetlands, riparian and areas in which water accumulates.”

This September, Africa will host the XIV World Forestry Congress in Durban, which aims to ensure that forestry is an integral part of sustainable development. It also sets out to propose technical, scientific and policy interventions to promote forest sustainability. Africa’s interests will be represented by the Forest Stewardship Council with regional offices in South Africa, Kenya and the Democratic Republic of Congo, and with FSCcertified forests in 19 African countries.

Chris Burchmore, the regional director of FSC Africa says: “This congress is a crucial event for the

sustainable use of Africa’s forests, which in turn are linked directly to biodiversity and livelihoods on the continent and ultimately, to life on Earth. It’s high time Africa hosted this important event. It will bring together the global forestry community, including government, NGOs, business and scientists to review and analyse the key issues and to share ways of addressing them. It will be professionally and culturally rewarding, but challenging too, as participants engage in defining a vision and strategies for the sustainable future of forests.”

FORESTRY SA +61 8 8724 2888 forestrysa@forestrysa.com.au www.forestry.sa.gov.au

www.enterprise-africa.net / September 2015 / 65

DEFY APPLIANCES

A History of

Reliability PRODUCTION: Timothy Reeder

Having just celebrated its 110th birthday, Defy Appliances today finds itself Southern Africa’s largest manufacturer and distributor of major domestic appliances. From its head office in Jacobs, Durban, Defy offers to the consumer the full range of kitchen and laundry appliances as well as solutions in the room air conditioner market.

//

The Defy name first came to prominence during the 1920s, with the company producing the first electric stoves in South Africa in 1932. Defy has since taken a leading role in appliance manufacturing, pioneering amongst other things gas stoves, washing machines, tumble dryers, continuous clean ovens and convection ovens in South Africa.

“The operations in fact began in 1905,” says Rajan Gungiah, Defy Marketing Director, “as the brainchild of two gentlemen named John Skinner and Sir Benjamin Greenacre. What we now call our head office in Jacobs is where it all began, predominantly in the manufacture of quality cast-iron pots, as well as some roof sheeting and asbestos products. Over the years the shift into cooking appliances took place.”

“Even in its very beginnings the company looked to bring innovation to all the different sections of home appliances in order to transform consumers’ lives,” says Gungiah of Defy’s overall objective. “This has remained a core facet of what we do, whether it concerns cooking, cooling or small appliances, a market we entered into just a few years ago. At each juncture we ensure that the appliance we introduce is environmentally friendly and will make a difference to people’s lives, allowing them to prepare, store or clean in the most effective way possible and with the latest available technology.”

Clearly, this is a market whose competitiveness has grown hugely during Defy’s lifetime, with its enduring success down largely to its local priorities, Gungiah says. “Our ability

www.enterprise-africa.net / September 2015 / 67

BUSINESS PROFILE

//ALL OUR APPLIANCES ARE

ENVIRONMENTALLY FRIENDLY AND MAKE A DIFFERENCE TO PEOPLE’S LIVES// to locally manufacture most of the products that we sell in the market is fundamentally important, as it gives us the ability to constantly add new features and benefits and offer a better value proposition in a market which remains very competitive. We have poured a huge amount of time and investment into research and development which has resulted over the decades in our having relevant products that are competitive with the very best in Europe.”

“A massive focus on quality and consistency works alongside what is arguably the most comprehensive service and aftercare infrastructure

in the country. It is so important that our customers know that they have the peace of mind of knowing that full backup is provided in terms of local parts and capabilities to resolve any issues or changes which may arise with their machines over time.”

Defy then is very much a South Africa-focussed business, but with extensive plans to grow its footprint outside of the country. “Probably 85% of our revenue, as well as the majority of our development focus, has been in the Southern African region and key countries on our borders. Our scope of responsibility however spans across the entire African continent, and so in time

68 / September 2015 / www.enterprise-africa.net

the company’s ambition and strategies are to develop those strategic countries within Africa.”

As Gungiah goes on to explain, however, this will only take place if a continuation of the work which has built up the Defy reputation is feasible.

“We will pursue other markets only if it can be executed in a manner which will allow us to replicate the success we have had locally. If we were to do this in Kenya, for example, it would be crucial that we have the capability to dominate the market from a competitive point of view with our products and services.”

“We have identified a Defy ‘toolkit’, with which to build up our market presence, which comprises the right product aftercare and service infrastructure, people resources and local offices. We therefore keep our focus to where we can execute this in a flawless manner, which will include

DEFY APPLIANCES

one or two new countries each year for the next ten in keeping with our expansion plan.”

“Opening up a new country comes with the full weight of Defy support. All of the localised infrastructure operated centrally from Johannesburg is decentralised into what works for that market.”

The scale of this planned expansion is being matched by Defy’s commitment to constantly improving its service offerings. “By the end of 2015 we will have seen investment of close to R 1 billion, to improve efficiency and in new technology primarily,” Gungiah details.

“Around 95% of this has already been invested in upgrading all three of our plants, perhaps most notable among which is the massive new press we have installed in our Jacobs factory that improves our output by six times. That allows us to price competitively and continue to offer value to consumers.”

Amidst such large-scale ambitions has arisen the occasion of Defy’s 110 year anniversary, testament to its standing within the market, a rarely seen longevity whose importance Gungiah is keen to stress. “This is a huge milestone for us, and we are doing all we can to communicate to our consumers and our internal staff our thanks to each of them for their input as we celebrate Defy’s history to date.”

“We saw it firstly as an opportunity to energise the company from within.

We have exceptionally high loyalty rates - average service levels are around 15 years - which means many people have been part of our success for a long

time. All our activities, celebrations and offerings have been centred around 110 years. Secondly came a focus on our customers, who have played a central role in our success and development over this period of time. We have engaged individually with them around this event and even plan to take 22 of them to the Rugby World Cup this year.”

Perhaps most importantly, in terms of this landmark event, is recognition of the role played by Defy’s consumers in its story. “We have opted to extend the warranty on our cooling products from two to five years. This additional three years comes at massive cost to us as we are a major manufacturer in the country, but we can trust the products and we felt this would be of huge benefit to those who buy them.”

“We are incredibly positive about the future,” concludes Gungiah, and

//OUR ABILITY TO LOCALLY

MANUFACTURE MOST OF THE PRODUCTS THAT WE SELL IN THE MARKET IS FUNDAMENTALLY IMPORTANT//

in particular from a penetration point of view. “We believe that there are some segments, such as dishwashers, where we only have a 7% penetration in the country, that hold massive opportunities for us to grow over the coming years. We believe that the investments we are making for Africa, outside of all the external factors which affect business performance like the economy and politics, give us a great foundation to expand and the signs point to even greater success to come.”

DEFY APPLIANCES 0861 003339 info@defy.co.za www.defy.co.za

Light Fitting Manufacturing High pressure Aluminium Die-casting Plastic Injection Moulding 4 Dick King Road, Wilsonia, East London 5201, South Africa Tel : +27 (43) 745 2212 Fax : +27 (43) 745 2203 E-mail: johny@prismlighting.co.za elainef@prismlighting.co.za

www.prismlighting.co.za

DLP MANUFACTURERS (PTY) LTD T/A

products

www.enterprise-africa.net / September 2015 / 69

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.

BAUMA CONEXPO AFRICA 15-18 SEPTEMBER 2015 International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles. The premiere of bauma Africa in September 2013 attracted 754 exhibitors from 38 countries and 14,700 visitors from over 100 countries. Covering a total of 60,000 square meters of exhibition space (40,100 m2 net) this is the biggest event for the sector in Africa.

BUSINESS, ENTREPRENEURSHIP & FRANCHISE EXPO 10-13 SEPTEMBER 2015 The Business, Entrepreneurship & Franchise Expo, presented by Thebe Reed Exhibitions in partnership with the Eskom Foundation, has a proud 22-year history of building businesses in South Africa. Now this premier entrepreneurship and business development event in Southern Africa showcases all the opportunities, services, solutions and advice you need to grow existing business interests, or to start a new business.

With focus areas for every level of entrepreneur – from larger businesses and established entrepreneurs looking to expand or find partners, through to SMEs and even senior school learners hoping to launch their own start-ups in future – the Business, Entrepreneurship & Franchise Expo is the ultimate one-stop event to open new doors for business growth and development.

ELECTRA MINING AFRICA 2014 Expo Centre, Nasrec, Johannesburg 15-19 September THE WEDDING EXPO Coca-Cola Dome, Johannesburg 6-7 September BUSINESS ENTREPRENEURSHIP & FRANCHISE EXPO Coca-Cola Dome, Johannesburg 10-13 September IFAT ENVIRONMENTAL TECHNOLOGY FORUM AFRICA Expo Centre, Nasrec, Johannesburg 15-18 September BAUMA CONEXPO AFRICA Expo Centre, Nasrec, Johannesburg 15-18 September CITYSCAPE EGYPT Cairo International Convention Centre 16-19 September THE UPSTREAM & DOWNSTREAM OIL & GAS EXPO ABUJA Abuja International Conference Centre 22-24 September THE OFFICE MANAGER SHOW AFRICA Sandton Convention Centre, Johannesburg 30 September - 1 October

THE UPSTREAM & DOWNSTREAM OIL & GAS EXPO ABUJA 22-24 SEPTEMBER 2015 The U&D Oil & Gas Expo this year will be assessing the Nigerian Content Act 2010 aimed at opening up the oil & gas sector to international oil & gas operators. The event, to be held alongside the 4th Power, Steel and Housing Exhibition & Conference and Nigeria’s Oil & Gas Industry Awards, will also be uniting all the main players in Nigeria’s energy sectors.

70 / September 2015 / www.enterprise-africa.net