Enterprise Africa March 2018

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

March 2018

www.enterprise-africa.net

EXCLUSIVE INTERVIEW WITH ABB SA CEO LEON VILJOEN

Technology Focus Powers ABB’s African Growth ALSO IN THIS ISSUE:

Jawbone / AutoTrader / Dis-Chem / Attacq

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EDITOR’S LETTER EDITOR Joe Forshaw  joe@enterprise-africa.co.za SALES ADMINISTRATOR Emma Neethling  sales@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks  sam@enterprise-africa.co.za PROJECT MANAGER Shannon James  shannon@enterprise-africa.co.za PROJECT MANAGER Aarron Chapman  aarron@enterprise-africa.co.za PROJECT MANAGER James Redwell  james@enterprise-africa.co.za FINANCE MANAGER Emily Taylor  finance@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery

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President Ramaphosa is in office and the business community is largely buoyant – hallelujah! His talk is of ending corruption and state capture, creating jobs, and reviving a numb economy.

“We should put all the negativity that has dogged our country behind us because a new dawn is upon us,” he said while delivering his maiden SONA. Immediately, business responded positively with growth forecasts revised up, currency pricing vastly improved and the Bureau for Economic Research (BER) claiming that the appointment could be the biggest boost in business confidence since 1994.

Ramaphosa’s Cabinet reshuffle was also welcomed by business with Nene, Gordhan and Mantashe taking vital positions. Clearly, now is the time for positivity – now is the time for excitement.

But, of course, we cannot overreact. The country’s economic outlook remains uneasy, large swathes of South Africa remain gripped by drought, and huge numbers remain unemployed – there is no instant fix. While now is a time of positivity, it also remains a time for hard work.

Without hard work and adaptation, nothing will be achieved. That is the lesson we learn from this month’s featured organisations. ABB SA CEO, Leon Viljoen tells us that adapting to meet the requirements of changing power systems is important. Jawbone Brand Experiences CEO, Sven Reinertsen tells us that his business must work hard every day to remain ahead of competition, and AutoTrader SA CEO, George Mienie explains how the company has had to make big changes to stay atop its market.

Get in touch and tells us how you feel about the new political regime and what you are doing to boost business during this time of positive feeling.

We’re online, as always @EnterpriseAfri1

Joe Forshaw EDITOR

Editorial & Design +44 (0)20 7193 2735 E. info@cmb-multimedia.com www.cmb-multimedia.com 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. 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 2018

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06/NEWS: The News Snapshot A round up of some of the latest news stories from around the country

104/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

10/ABB SOUTHERN AFRICA Technology Focus Powers ABB’s African Growth With an extremely large installed base, all over the African continent, ABB remains a leading force in electrification, power, automation and related industries. The global pioneering technology business, through its local divisions, is sparking a revolution in rail, renewable energy, and utility supply security. Southern Africa CEO, Leon Viljoen tells us more.

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CONTENTS

20/

37/

77/

INDUSTRY FOCUS: AUTOMOTIVE

INDUSTRY FOCUS: PROPERTY

20/AUTOTRADER SA Car Mart Gets Its Digital Best Seller

64/ATTACQ More Big Names Arrive At Waterfall

INDUSTRY FOCUS: TRANSPORT

INDUSTRY FOCUS: RETAIL

26/ACSA All Systems Go For ACSA’s Cape Town Runway Expansion

71/BRIGHTS HARDWARE Save Water With Brights

33/DB SCHENKER South Africa’s Logistics Experts INDUSTRY FOCUS: MARKETING 37/JAWBONE BRAND EXPERIENCES uMhlathi to Help Jawbone Deliver Brand Experiences INDUSTRY FOCUS: FINANCIAL SERVICES 43/AMPLE INSURANCE BROKERS Raising the Barin SA Insurance 46/CAVMONT BANK Striving for Banking Excellence 53/SASRIA Offering Security in Uncertain Times INDUSTRY FOCUS: PROPERTY

77/DIS-CHEM PHARMACIES Healthy Performance for Dis-Chem INDUSTRY FOCUS: TECHNOLOGY 80/MIP HOLDINGS Perfect Partner to Avoid the App Gap 86/ZEISS SA An Unbending Focus on Innovation INDUSTRY FOCUS: MINING 90/FERMEL Global Recognition for SA Mining Manufacturer INDUSTRY FOCUS: AGRICULTURE 97/CARARA AGRO PROCESSING Cherry Peppers Keep on Giving for Carara Carara

59/BROLL FACILITIES MANAGEMENT Africa, Broll HasYou Covered www.enterprise-africa.net / 5

A NEW DAWN IS UPON US: PRES RAMAPHOSA Let us put all the negativity that has dogged our country behind us “because a new dawn is upon us” – was the strong message that newly elected South African President Cyril Ramaphosa shared with the nation.

“Together we are going to make history. We have done it before and we will do it again,” said an upbeat Ramaphosa.

Delivering his maiden State of the Nation Address, the President said in the spirit of honouring world icon Nelson “Madiba” Mandela, the country should put the negative past behind and focus on rebuilding, hope and renewal.

The President said that as the country prepares to mark the centenary of the former statesman, South Africans should honour Madiba by putting behind us the era of discord, disunity and disillusionment and build the future that he envisioned.

“We should put behind us the era of diminishing trust in public institutions and weakened confidence in leaders.

“We should put all the negativity that has dogged our country behind us because a new dawn is upon us.

“It is a new dawn that is inspired by our collective memory of Nelson Mandela and the changes that are unfolding.

“As we rid our minds of all negativity, we should reaffirm our belief that South Africa belongs to all who live in it,” he said.

“There are 57 million of us, each with different histories, languages, cultures, experiences, views and interests.

“Yet we are bound together by a common destiny.

“For this, we owe much to our forebearers – people like Pixley ka Seme, Charlotte Maxeke and Chief Albert Luthuli – who understood the necessity of the unity and harmony of all the people of this great land.”

The President said government was committed to working as one to put a dent on employment and create jobs.

“We are one people, committed to

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work together to find jobs for our youth, to build factories and roads, houses and clinics; to prepare our children for a world of change and progress; to build cities and towns where families may be safe, productive and content,” he said.

“We are determined to build a society defined by decency and integrity, that does not tolerate the plunder of public resources, nor the theft by corporate criminals of the hard-earned savings of ordinary people.”

The President said education was a key to alleviating poverty from poor households.

“Today we have nearly a million children in early childhood development facilities. We are seeing improvements in the outcomes of our basic education system. The matric pass rate increased from 60.6 percent in 2009 to 75.1 percent last year. There are currently almost a million students enrolled in higher education, up from just over 500,000 in 1994.

“We have taken decisive measures to address concerns about political instability and are committed to ensure

policy certainty and consistency. There is a greater sense of optimism among our people.”

The President said citizens are hopeful about the future.

He said business confidence among South African companies has improved and foreign investors are looking anew at opportunities in the country.

“Some financial institutions have identified South Africa as one of the hot emerging markets for 2018.

“Our task, as South Africans, is to seize this moment of hope and renewal, and to work together to ensure that it makes a meaningful difference in the lives of our people.”

Ending state corruption was also a key part of his message.

“We will change the way that boards are appointed so that only people with expertise, experience and integrity serve in these vital positions. This is the year in which we will turn the tide of corruption in our public institutions.”

© GCIS

NEWS SNAPSHOT GOVERNMENT WELCOMES WHIRLPOOL INVESTMENT Trade and Industry Minister Dr Rob Davies has welcomed Whirlpool South Africa’s R100 million investment that is expected to create 100 jobs.

The multinational, which manufactures a comprehensive range of KIC brand refrigerators and freezers among others, recently launched a new range of 14 upgraded bottom mount fridges and a new model of twin-tub washing machines, which is set to revolutionise the entry point of the South African home appliance market.

“This increased and expanded investment reaffirms Whirlpool’s commitment to the country and the region, as it retains 1000 jobs and brings about 100 new jobs.

Industrialisation is a key pillar coupled with localisation. I cannot overemphasise the importance of the white goods sector and its contribution to the South African economy in terms of growth, job creation, localisation and exports.

“All these elements are critically important to the Industrial Policy Action Plan which underpins economic growth,” said Minister Davies.

The R100 million investment in the company’s plant, which is located in the Isithebe Industrial Park near Mandeni, includes large scale production equipment imported from Europe and India.

High level skills development will be at the forefront of the company’s skills development programme.

The Managing Director of Whirlpool South Africa, Michele Caputo, said that as the company expands its presence in Southern Africa, KIC and Whirlpool remain committed to providing solutions that will enable growth and sustain economic development.

“Whirlpool is keen to support the South African government’s localisation programme by partnering with local manufacturers to consolidate an integrated domestic supply chain,” said Caputo.

SMOKERS, DRINKERS TO FEEL THE PINCH Former-Finance Minister Malusi Gigaba (who was replaced by another former Minister, Nhlanhla Nene) recently announced an increase on excise duties that will leave smokers and drinkers with a hangover.

Tabling his 2018 Budget Speech at the National Assembly in February, Gigaba said alcohol and tobacco excise duties will increase between six and 10%.

For malt beer, the current excise duty rate stands at R86.39 per litre

of absolute alcohol, or 146.9 cents per average 340ml can. This will go up by R95.03 per litre or 161.56 cents per 340ml can.

Unfortified wine will go up from R3.61 per litre to R3.91 per litre, while fortified wine will increase to R6.54 per litre from R6.17 per litre.

Ciders and alcoholic fruit beverages will go up by 10 percent to R95.03 per litre of absolute alcohol, while spirits will go up by 8.5 percent to R190.08 per litre of absolute alcohol.

For the smokers, excise on all

tobacco products has been hiked by 8.5%.

“The National Treasury and the Department of Health will explore additional measures to reduce consumption of tobacco products, including a minimum price and stronger enforcement,” the National Treasury said.

Meanwhile, the National Treasury said that the health promotion levy, which taxes sugar beverages, will be implemented from 1 April 2018.

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GOOGLE LOOKS TO MASITO TO DRIVE SSA Google has announced the appointment of Mzamo Masito as its CMO for the sub-Saharan Africa region. Masito is a former Vodacom employee who holds an MBA from the Gordon Institute of Business Science (GIBS) as well as a post-graduate diploma from UCT. Masito, whose career has also seen him spend time with Nike and Unilever, lectures at the AAA School of Advertising and serves on the GIBS advisory board.

“I spoke to a number of people before joining, and the consistent theme was Google’s humanity,” he said, admitting he was excited about being part of a business that cares about Africa. “The focus on teamwork, love of its people, and drive to achieve goals – this is why I joined the company. I hope while I am here I can channel my passion for Africa into the work we do.”

Working from Google’s Joburg office, he will head up the sub-Saharan Africa marketing team and will aim to sustain its momentum and capitalise on its successes in the region, increase online access, enhance locallyrelevant products and content, and help people take advantage of the opportunities offered by the world of Google and the Internet.

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©ISUZU

ISUZU MOTORS INVESTMENT A BOOST FOR SA The South African economy has received a major boost with the Isuzu Motors purchase of the Struandale plant in Port Elizabeth.

In a statement last month, the Dti said the launch of the plant will boost investor confidence in the country.

Last year, Isuzu announced it would purchase the light commercial vehicle operations in Port Elizabeth as well as the balance of shareholding in its Isuzu Trucks South Africa operations.

The Japanese manufacturer purchased the Struandale plant, which belonged to General Motors.

Isuzu Motors, consolidated into one business now known as Isuzu Motors South Africa (IMSA), became effective from January 2018 and will build Isuzu pick-ups and trucks.

“We know that this investment will mean that 1000 jobs in the facility will be saved and there are 3000 jobs in the direct supply chain and many thousands more in the supply companies. Jobs will continue to be guaranteed in the future,” said Dti Minister Rob Davies.

He said South Africa’s automotive industry is a global, turbo-charged

engine for the manufacture and export of vehicles and components.

Many major multinational firms use South Africa to source components and assemble vehicles for local and international markets.

The President and Representative Director of Isuzu Motors of Japan, Masanori Katayama, said the company is keen to grow its business in South Africa.

“This is the first commercial and light commercial vehicle manufacturing operation outside of Japan in which we have acquired a 100% ownership. We are represented in 30 countries outside of Japan and successfully operate 47 manufacturing plants in these countries with joint venture partners. Our decision with regards to South Africa demonstrates the confidence we have in this market and also is indicative of our longer-term view that South Africa will serve as an important base for our future growth on the African continent.”

Isuzu also used the launch to reveal the company’s new SUV segment contender‚ the Isuzu MUX (Multi Utility Crossover).

NEWS SNAPSHOT FORMER FINANCE MINISTER GIGABA DELIVERS 2018 BUDGET AMID TOUGH CLIMATE BEFORE CABINET RESHUFFLE Fomer Finance Minister Malusi Gigaba’s Budget Speech saw him make “difficult decisions” to address a revenue shortfall and to fund free higher education.

An increase in value-added tax (VAT), fuel levy and a higher estate duty tax are just some of the things South Africans will be faced with this year.

Gigaba also announced some relief for the poor and the working class in the form of below inflation increase in personal income tax, while ensuring an above average increase in social grants. As part of wide-ranging tax proposals, the Minister said the measures were being introduced, in the main, to generate an additional R36 billion in tax revenue for 2018/19.

The main tax proposals for the 2018 Budget are: © GCIS • An increase in the value-added tax (VAT) rate from 14% to 15%, effective 1 April 2018; • A below inflation increase in the personal income tax rebates and brackets, with greater relief for those in the lower income tax brackets; • An increase in the ad-valorem excise duty rate on luxury goods from 7% to 9%; • A higher estate duty tax rate of 25% for estates greater than R30 million in value; • A 52 cents per litre increase in the levies on fuel, made up of a 22 cents per litre for the general fuel levy and a 30 cents per litre increase in the Road Accident Fund Levy, and • Increases in the alcohol and tobacco excise duties of between 6 and 10%.

“We have not adjusted VAT since 1993, and it is low compared to some of our peers. We therefore decided that increasing VAT was unavoidable if we are to maintain the integrity of our public finances,” he said.

What the tax proposals mean for 2018/ 19 financial year In December, former President Jacob Zuma announced that from this year, government would implement fee-free higher education in a phased approach.

In its budget review document, National Treasury said the central adjustments to the fiscal framework in 2018/19 are meant to: • Raise an additional R36 billion in tax revenue through an increase in the VAT rate, limited personal income tax bracket adjustments and other measures; • Reduce the Medium Term Budget Policy Statement baseline expenditure by R26 billion; • Allocate R12.4 billion for fee-free higher education and training; • Set aside an additional R5 billion for the contingency reserve; • Provisionally allocate R6 billion for drought management and public infrastructure.

“The baseline spending reductions and tax measures feed through to the outer years of the framework, while allocations to higher education increase sharply,” National Treasury said.

Vulnerable households shielded from VAT increase The Minister said, meanwhile, that vulnerable households were protected from an increase in VAT. “Vulnerable households will also be compensated through an above average increase in social grants.

“Some relief will be provided for lower income individuals through an increase in the bottom three personal income tax brackets and the rebates,” Minister Gigaba said.

The Minister said in addition to VAT, National Treasury would increase excise duties on luxury goods and estate duty on wealthy individuals.

He said taken together, National Treasury believed that the proposals best protect the progressive nature of the country’s tax regime to minimise the impact on lower-income households.

This budget came before Gigaba was replaced by Nhlanhla Nene – the country’s former finance minister. Gigaba moves on to become Minister of Home Affairs.

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ABB SOUTHERN AFRICA

Technology Focus Powers ABB’s

African Growth PRODUCTION: Manelesi Dumasi

With an extremely large installed base, all over the African continent, ABB remains a leading force in electrification, power, automation and related industries. The global pioneering technology business, through its local divisions, is sparking a revolution in rail, renewable energy, and utility supply security. Southern Africa CEO, Leon Viljoen tells us more.

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In 2014, ABB – the world’s leading technology and electrification company – announced its intention to launch a ‘Next Level strategy’ which would see the business accelerate sustainable value creation by building on three focus areas of profitable growth, relentless execution and business-

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led collaboration. The 2015-2020 strategy, according to ABB CEO Ulrich Spiesshofer, would help drive “organic growth momentum, margin accretion as well as enhanced capital efficiency to deliver greater shareholder value.”

In 2016, after achieving much success with the new strategy, the business announced that it

would enter the third stage of implementation, involving a transition of the organisation towards being a pioneering technology business.

“Over the last two years, ABB has become faster, leaner and more efficient,” said Spiesshofer in 2016. “We have continuously improved margins and further strengthened our cash

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INDUSTRY FOCUS: POWER & AUTOMATION

generation. In Stage 3 of our Next Level strategy, we are building on our successful transformation momentum and strengthening our position as a pioneering technology leader and global digital champion.”

And in Southern Africa, a major market for ABB, this strategy has been welcomed. “With our move from being an engineering company to being a pioneering technology leader, there has been a change in focus for the group and I think that is the right direction for us to be going,” ABB Southern Africa CEO, Leon Viljoen tells Enterprise Africa.

“We grew our regional business order intake and top line considerably in 2016 and 2017.”

And the strategy is doing the job at global level, with the group reporting last month that revenues for

2017 were up by 1%, base orders were up by 5%, net income was up 17%, and strategic acquisitions were ongoing. “In the transition year 2017, we shaped a streamlined and strengthened ABB…

With our targeted actions to shift our center of gravity, we have improved competitiveness, addressed highergrowth segments and de-risked ABB. We delivered four consecutive quarters of increasing base-order growth,” said Spiesshofer.

CONSISTENT BUSINESS Back in November 2015, Viljoen told Enterprise Africa that ABB SA’s more than 1000 employees were part of some of South Africa’s most important projects (Kusile power station and Venetia mine expansion), and today he says that those projects have been very successful and remain ongoing.

“At Kusile we’ve completed the first two units on the control and instrumentation (C&I) side and we are busy with the third of six units. We’ve also completed the Balance of Plant (BoP) and we are now midway through the project in total,” he says.

“At Venetia, we are still busy with the mine winders. All the designs have been completed and approved and the execution phase of the project is starting to kick off.

“We’ve also gained a very big mine winder contract in Russia where we are the centre of the excellence for the mechanical part of the mine winder and ABB Sweden does the electrical side and together we won that big contract.

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ABB SOUTHERN AFRICA

// WHERE MANY COMPANIES MAKE HUGE MARKETING CAMPAIGNS ABOUT ENTERING AFRICA AND DOING THINGS, WE’VE ALREADY BEEN THERE FOR DECADES AND WE HAVE BUILT A GOOD CUSTOMER BASE // “We’ve been successful with ABB Sweden in a few different countries and our relationship is great. Being the centre of excellence on the mechanical side, wherever there are big projects of this nature, together with Sweden we are often successful,” he adds.

With the restructuring of the global group strategy, the employee mix in Southern Africa has seen some changes and Viljoen explains that this has helped the business become more competitive.

“In Southern Africa, our employee numbers remain the same or are slightly down from 2015 and the reason is that in South Africa, we’ve worked hard on white collar productivity – a programme that ABB has initiated globally – looking at our back offices and supporting staff and consolidating work in countries like India and Poland,” he says.

“However, our sales and service complement has grown around Southern Africa,” he adds. “What we have done, specifically in South Africa, is diversify our customer base and one of the reasons for that is that political instability, in many countries, has impacted on us in a lot of instances in the past. Utility businesses are linked to government and if governments change then utility spending can stop.

However, utility business will always remain a big portion of our supply.

Utility business has helped us to get into other parts of the market and in the past we have done that very successfully.”

ECONOMIC SPARK? The South African economy has been flirting with minimal economic

growth (GDP growth not exceeding 3% since 2011 according to Stats SA).

Global credit rating agency decisions have been widely reported, political factors have caused havoc with currency pricing, and commodities have also contributed to an unstable environment. But this is where ABB’s international strength and presence across multiple local markets allows the business to be flexible and avoid potential problem situations. Viljoen says that gaining more long-term

maintenance business as well as retaining a strong presence in multiple locations allows the company to avoid regional slowdowns.

“We need to increase the service portion of our income which will make us less exposed to political instability.

We also look at each country in Southern Africa as one country from a financial perspective and ask where is the growth coming from – we know we won’t get growth in every country every year. As long as our combined order intake grows year-on-year, we are satisfied.”

But economic instability that effects ABB’s customers is often unavoidable, and this is where ABB South Africa has felt the impact in recent times.

In May 2017, ABB inaugurated its brand new, state-of-the-art

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INDUSTRY FOCUS: POWER & AUTOMATION

transformer traction production facility located next to its Longmeadow headquarters in Johannesburg. The facility was developed to serve the needs of South Africa’s rail industry expansion, specifically the needs of Transnet which ordered hundreds of new locomotives in a landmark contract back in 2014. ABB’s unit produces traction transformers to help power trains. They feed power at safe voltages to essential train functions like traction, brakes, lighting, heating and ventilation, as well as passenger information, signalling and communication. The factory is 2450 m2 and is an essential element in the construction of 240 Bombardier electric locomotives, satisfying the local manufacturing element of the South African government’s local

// WITH CYRIL RAMAPHOSA’S APPOINTMENT, THERE’S DEFINITELY A MORE POSITIVE FEELING IN BUSINESS IN SOUTH AFRICA // procurement and employment requirements.

But, to date, the factory is not working to full capacity as Transnet has been faced with delays. “It has been a success story in terms of localising international technology into South Africa and Africa,” explains Viljoen.

“Unfortunately, with Transnet delaying parts of the project, the factory is definitely not working at capacity. We are hoping to secure a couple of new orders to help the factory fill capacity but for me, it has been a success because of how easily we transferred the technology to South Africa. Our

first units went through without any glitch, and transformers are the pieces of electrical equipment that get the harshest tests before they leave the factory. Our units passed all tests on the first attempt but manufacturing has now slowed. At the moment we are waiting to see what will happen but we expect things to pick up towards the end of the year.”

He confirms that the rail industry remains a key focus for ABB as it is a growing sector with many opportunities across many territories.

“Zambia, Kenya and Tanzania are all in discussions about expanding their rail

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ABB SOUTHERN AFRICA

networks,” he says.

Going forward, all opportunities for expansion will be considered but they must add to ABB’s already strong order intake. “We are really looking at growing our order intake and revenue – that is extremely important to me; a company that doesn’t grow is not sustainable,” details Viljoen. “We have six growth segments that we are targeting and we were successful in 2017 but we can improve in 2018. We are looking at large LNG projects in Uganda and we need to get further into the digitisation and the fourth industrial revolution where ABB has a lot of solutions that have been rolled out around the word.”

POWERFUL EXPANSION In August 2017, ABB further solidified its position in Southern Africa with the opening of a new facility in Namibia.

The 2200 m2, located in Windhoek, is the result of consolidating two smaller offices and is targeted with servicing the local market and neighbouring countries including Zambia and Angola.

Viljoen is proud of the new facility and says it will help the business deliver on the vital service contracts that are making up an ever-increasing percentage of revenue.

“We had two offices there, and that was basically a service company that ABB purchased many years ago but was never really consolidated so we decided to bring the two operations into one. We are targeting places like Zambia and Angola from Namibia as we have an extremely strong service component there.

“We have also picked up some nice orders from the Port of Walvis where a Chinese company in building the port and we are offering local capabilities and expertise.

“We’ve seen a shift in spending from Capex to Opex; that’s more maintaining of equipment to be sure that equipment works for longer. We saw, specifically in the mining sector

ABB SA CEO LEON VILJOEN

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INDUSTRY FOCUS: POWER & AUTOMATION

// I BELIEVE IT WON’T BE LONG BEFORE WE SEE MUCH BIGGER MICROGRIDS THAT INCORPORATE BATTERIES WHICH CAN STORE LARGE AMOUNTS OF ENERGY FOR WHEN THE SUN AND WIND DISAPPEAR // in the middle of last year, there was a huge downturn in capital expenditure but it returned slightly at the end of the year. With Cyril Ramaphosa’s appointment, there’s definitely a more positive feeling in business in South Africa. However, we definitely saw a lot of global companies holding back on Capex last year and that does affect us but fortunately we picked up enough business on the Opex side to maintain our growth.”

Losing these Opex contracts

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to competitors is not an option for Viljoen and he is confident that ABB is the strongest player in the market in Southern Africa, thanks to its local knowledge and reach – most competitors are small local branches of international organisations. “For our Southern Africa market, our biggest competitors come from the East; that’s Chinese companies with Chinese funding,” he says.

To shield itself from this type of threat, ABB SA partners with ABB China to try and benefit from the

Chinese funding to make sure that the company wins the projects, partnering with EPC’s coming into Africa. “We play across such a broad field that we will have competitors in various segments but we continue to be very successful in Africa.”

A major factor not to be underestimated by international players entering Africa and looking to take market share from ABB is the history that ABB has built on the continent. It is rooted in Africa and has been a partner to utilities and other customers.

“Last year, we celebrated being in Africa for 110 years and if you have a look at our offices in Southern Africa, not including South Africa, we have been in most of these countries for 20 or 30 years at least,” Viljoen highlights.

“Where many companies make huge marketing campaigns about

ABB SOUTHERN AFRICA

// I WOULD DEFINITELY RATHER WORK IN ABB SOUTHERN AFRICA THAN ANYWHERE ELSE WHERE THERE IS NOT HUGE GROWTH //

entering Africa and doing things, we’ve already been there for decades and we have built a good customer base. We will be focussing on our service to grow our business

because we have built such a huge installed base over the years so it’s only right that we look at that base and ask what we can do from a maintenance/Opex perspective.”

AFRICAN PROJECTS ABB’s project pipeline in Africa is sizeable and current big-name projects include the installation of seven micro substations in the DRC. The partial upgrade of the IngaKolwezi high-voltage direct current (HVDC) power transmission link, which connects the power from the Inga hydropower station to the mining district of Katanga in the south-east of the country, was announced in May 2017 and was valued at an estimated $30 million.

“We actually received a big order in the past year for further work on that project,” enthuses Viljoen. “That will probably be a two year contract surrounding the HVDC system. It’s the third similar system that we’ve worked on after the Songo-Apollo link which connects the Cohora Bassa dam in

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INDUSTRY FOCUS: POWER & AUTOMATION

Mozambique to South Africa and the Caprivi link which connects Namibia and Zambia.”

The 1700 km link, built by ABB in 1982 and upgraded in 2009, is formerly

the world’s longest transmission line. The work currently being carried out by ABB will see a boost in transmission capacity, enhance grid reliability, extend life span and

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ensure the efficient transmission of hydro-electricity across the region.

Transmission capacity will be almost doubled, from 520 MW to 1000 MW. With microgrids, ABB received international plaudits for its installation at Robben Island and the system installed at its Longmeadow head office. A microgrid is a small, self-contained network that serves a local area – ideal for a rural or difficult to reach location.

“Microgrids hold huge potential for Africa – we’ve got plenty of sun here so from a renewable perspective, there’s a lot of opportunity. Our technology involves making sure that all your components seamlessly integrate into the network. In Kenya, we did a microgrid flywheel installation as the wind power was destabilising the network a lot. We also worked at the Red Cross in Kenya where we built a new microgrid. We are in talks with the mining community about installing microgrids and we are also developing smaller systems for industrial and small community use.

“As long as there is sun, it will give you the energy you need. We installed a microgrid here at our head office just over a year ago and its running well giving us most of our power requirements when the sun is shining.

That is the beauty of these renewable projects, you make an investment that pays back,” says Viljoen.

Alongside microgrids, ABB SA is also working on new concepts such as the substation voltage transformer system, where smaller communities can draw from an electricity line without the need for a major, highly expensive substation.

“We installed a couple of substation VTs in the DRC for SNEL and its to help where you have a highvoltage line between two points which goes over a village but doesn’t feed that village. To build a substation for a village makes no sense because of the price so we have developed what we call a substation voltage transformer

ABB SOUTHERN AFRICA

system that is a micro sub-station and that gives enough power to electrify a small community. This is a product that we are starting to roll out across Southern Africa.”

With renewable energy gaining traction all over the world, Viljoen is confident that Africa will soon follow suit. The company’s microgrid systems and substation voltage transformer systems will be very important as new energy is fed into the grid.

“I think there will definitely be more renewables,” he says. “I agree with Mr Ramaphosa that we can’t afford nuclear power and with the advances that have been made with battery technologies, I believe it won’t be long before we see much larger microgrids that incorporate batteries which can store large amounts of energy for when the sun and wind disappear.”

2018 AND BEYOND As well as driving the global strategy to unlock value and increase profitable growth, ABB South Africa will be looking to localise the company’s global expertise and create money saving opportunities for customers.

“It’s an exciting time,” says Viljoen.

“Africa is continually growing and there‘s lots of new opportunities for customers and for ABB. We have a lot of products and solutions that are very energy efficient so when it comes to making your operation more financially viable, this is definitely an area that we play in.”

On a personal level, the CEO remains committed to the ABB project and is enthusiastic about the future of sub-Saharan Africa – a future that will undoubtedly realise major electrification and power possibilities.

“I’m enjoying it. I would definitely rather work in ABB Southern Africa than anywhere else where there is not huge growth. Working in Southern Africa is exciting; there are problems yes, but without challenges we wouldn’t have work,” he laughs.

“ABB’s change in direction towards technology rather than purely engineering requires a change in mind-set and also a change in skillset so there is a lot to do to get the company to where we would like it to be,” he concludes.

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AUTOTRADER SA

Car Mart Gets Its

Digital Best Seller PRODUCTION: Colin Chinery

A ten-year strategy honed for South Africa’s distinct environment has seen AutoTrader’s transition from a traditional print business into a digital giant and runaway market leader. “We couldn’t pretend that we were a First World country. We had to follow our own path and find a different way to do this,” says the man spearheading this publishing revolution CEO, George Mienie.

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GEORGE MIENIE - AUTOTRADER SA CEO www.enterprise-africa.net / 21

INDUSTRY FOCUS: AUTOMOTIVE

//

With shortages in South Africa’s used car market driving new sales growth, vehicle classifieds listing and digital marketing leader AutoTrader is seen increasingly as a key navigator for the discriminating buyer.

Offering a safe and secure interaction between buyers and sellers, AutoTrader has been shaping the national auto scene for the past 26 years, assisting the car buyer in every purchase step, with research and comparison tools, features and expert video reviews as well as great car finance and insurance deals.

Until 2017 it appeared in traditional print format, but in March that year a phased transformation strategy saw the last copy rolling off the press as the

Randburg-headquartered publisher went 100% on-line.

The decision to fold print publication was taken after nearly 10 years of research and against a backdrop of declining print revenue and fewer readers. “Over the years we saw the shift in our audience from print to online,” says the man heading the format revolution, AutoTrader CO, George Mienie. With 45,000 vehicles now on its website, on-line success has trumped any lingering print nostalgia.

CALL OF THE INTERNET The call of print had been powerful.

Around 2007-2008, the off-line AutoTrader had been running to 1,000 pages. But by 2012, when the UK parent sold the South African title in a private equity/

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// WE HAD TO MAKE A DECISION; DID WE FOLLOW THEIR PATH AND BUILD THIS MODEL INTO THE FUTURE STRATEGY OF THE BUSINESS? // management buy-out in which the current CEO was a participant, internet publication was making fast inroads into First World economies. For astute insiders like Mienie, the writing was showing up on the South African glass wall.

Consultants brought in to advise on future strategy reported that South Africa was not ready for internet publishing, and AutoTrader’s best model would be a combination of paid-for and free titles. Only at some future point should it venture into off-line.

Mienie was unimpressed.

“I ignored that advice. I felt that if we were going to sit with the print magazine for too long, we were going to be disrupted by some online player who would close our doors, which is what had happened to AutoTrader in Australia.

“In the UK and the US, the internet took hold very quickly, and newspapers and magazines followed quite rapidly. We had to make a decision; did we follow their path and build this model into the future strategy of the business?

“We said No; we are a different country, with different people and a different market. Our demographics and population patterns are very fragmented, and there are education issues. Other issues were broadband, smart phones, and an infrastructure which wasn’t as developed as in the UK and the US.

AUTOTRADER SA

WAY FOR SA “We couldn’t pretend that we were a First World country. We had to follow our own path and find a different way to do this. And we did, thank goodness.”

The chosen path was a graduated transition that would see internet publishing systematically expanded as print was phased out. But some imponderables remained.

“We were sitting with a successful print business where the pricing policy was dependent on volume, whereas the internet had a subscription model where everybody paid the same. Maybe this transition from magazine to digital would take a little bit longer than we expected, but we didn’t know how long “We knew what the problems were and what the end game was. But we didn’t know when it was going to be. We needed to find a way that measured online adoption of car search and came up with one solution which I think was the saving grace of this business.”

This was Call Tracker, a technology which among other attributes, measures the number of calls to a dealer. “It was so simple, but at the time it wasn’t so easy to think about.

We spent five million Rand a year in costs running the system and doing our own research. Once every three months we would take a sample set of

// WE NEEDED TO FIND A WAY THAT MEASURED ONLINE ADOPTION OF CAR SEARCH AND CAME UP WITH ONE SOLUTION WHICH I THINK WAS THE SAVING GRACE OF THIS BUSINESS //

customers, which among other things established the rate of adoption of the internet in our auto market.

“With 2% of consumers calling from the internet adverts in 2008 and around 90% from the magazine, for me this was the Silver Bullet that allowed us to transition our revenue.

We allowed the car buying consumer to dictate the pace of the transition rather than us

“In 2015, 70% of response was from internet and 10% from the magazine. Come March 2016 when we still had a 150-page magazine, we decided come hell or high water we were going to close it by March 2017, even if it was running to 100 pages.

And shut it we did. I think we had 80 pages left, selling 2000 magazines per issue, and clearly becoming unprofitable.

INDUSTRY FOCUS: AUTOMOTIVE

GROWING REVENUE “Most of the other markets that succeeded in transition did it by setting up a separate business. We did it by continuing to run the same business but allowing the consumer to make the transition and moving the money across. As a result, we have consistently grown both our revenue and our profits.”

Investing in leading research and technology – such as the deployment of AutoFuzion’s live market view and real-time information - AutoTrader is the first stop for buyers and sellers

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// WE HAVE ENJOYED THE LEADING POSITION IN SOUTH AFRICA PRETTY WELL FROM THE BEGINNING AND WE ARE NOT GOING TO GIVE THIS UP VERY EASILY // searching for any type of vehicles.

Growing exponentially in online users as the market shifts and grows, it is now seven times bigger online than at its offline peak.

“Transparency and credibility are core to AutoTrader’s ethos,” says

Mienie, a young digital technology visionary, entrepreneur and former accountant – “I have never acted like one, not that they are bad.”

In an ‘an extremely competitive environment’ AutoTrader leads the market by engagement, conversion

AUTOTRADER SA

into customers, and revenue taken.

“We are not necessarily car lovers, but rather we love bringing buyers and sellers of cars together. This is why we have almost 70% market share in South African car sellers.

“We have enjoyed the leading position in South Africa pretty well from the beginning and we are not going to give this up very easily.

We are not sitting on our laurels and are very cognisant of the likes of vertical and horizontal players such as Facebook and the Facebook marketplace.

“I don’t think everybody in South Africa has really got their eye on this, but if they’re going to do what I think they’re going to do, it’s not going to be a threat.”

With auto sales key indices of consumer confidence, Mienie says the national economy and political environment have made South Africans reluctant to spend. “We have seen over the last two or three years that people are holding onto their cars for a lot longer. Dealers also need to get their hands on good clean stock for resale and this has a

knock-on effect for price inflation.

“But on the flip side, our lack of transport infrastructure means South Africans have to drive cars. Without the public transport systems that the UK or US has, they don’t have any choice. So the prospects for the South African auto industry are bright, and because of this bright for us too.”

RAMAPHOSA AT THE REINS Mienie is cautiously encouraged by the recent election of Cyril Ramaphosa as ANC leader and his subsequent promotion. “It’s become a little bit brighter now. Early days of course, but hopefully he is going to take the reins into the future in the right way and not in a corrupt way.

“South Africa is one of the more advanced countries in Africa, the Gateway to the continent as it has often been called. Some people have a negative opinion of our future; I have a positive opinion. My cousins have left the country to work in England, Australia, and Dubai, but I refused to leave because I believe South Africa has a bright future. Too many people have too much to lose to let it to go down the tubes.”

Meantime the opportunities of the age leave this dynamic creative thinker and publishing revolutionary exhilarated. “It’s like being in a time machine and the world is changing so fast. England and the US are travelling at one million miles an hour in terms of the pace of change in the technology world.

“South Africa is travelling at that same pace but trying to catch up with England and America, and so therefore we are travelling faster.

To say these are exciting times is an understatement.”

WWW.AUTOTRADER.CO.ZA

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ACSA

All Systems Go

For ACSA’s Cape Town Runway Expansion PRODUCTION: David Napier

Running nine airports in South Africa and providing services to other airports around the world, dealing with almost 20 million departures each year from South African airports alone, and ensuring that service quality remains delivered at the highest level, ACSA has a difficult job but it continues to impress, winning awards and displaying continued financial strength.

//

Africa is becoming a smaller place thanks to technology development. The way in which people and goods move around the continent is quickly becoming more efficient and more effective.

Covering more than 30 million km2 and more than 20% of the earth’s total land area, Africa’s 1.2 billion people still struggle to move from top to bottom (the distance from Cairo to Cape Town is more than 10,000 km).

But a new initiative from the African Union is hoping to improve transport in Africa by opening up opportunities in the African sky.

Launched in February, the Single African Air Transport Market (SAATM) is part of the AU’s Agenda 2063 which seeks to accelerate socio-economic transformation on the continent over the next 50 years. The SAATM aims to

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connect Africa through air transport and other transport infrastructure to achieve economic integration and boost intra-African trade. Of 54 African member states, 23 have subscribed to SAATM and four have begun the process of joining the initiative.

While there has been opposition to SAATM propositions (including claims that it will only benefit wealthy countries and big airlines), AU members are keen to point out that the entire air transport environment stands to benefit; there will be increased passenger movement, airports will see more traffic, air navigation services will improve, and every entity that works in the airport environment will benefit.

In January, AU Commissioner for Infrastructure and Energy, Amani Abou-Zeid, said that SAATM could create 300,000 African jobs.

“With preparations continuing on schedule, the launch of the Single African Air Transport Market will spur more opportunities to promote trade, crossborder investments in the production and service industries, including tourism resulting in the creation of an additional 300,000 direct and two million indirect jobs contributing immensely to the integration and socio-economic growth of the continent.”

“SAATM was created with the aim of enhancing connectivity and ensuring that the industry plays a more prominent role in the global economy and significantly contributing to the AU’s Agenda 2063,” he added.

As one of Africa’s largest economies, a major logistics hub, and home to a big-name airline, South Africa stands to benefit from SAATM. The country’s airports are not only some of the best

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INDUSTRY FOCUS: TRANSPORT

in Africa but some of the best globally.

Run by Airports Company South Africa (ACSA), South Africa’s nine key airport facilities are at the heart of African trade, industry and transportation.

The state-owned, but legally and financially independent, business is responsible for the effective operation of Cape Town International, O.R. Tambo International, King Shaka International, Port Elizabeth International, Bram Fischer International, Upington International, East London, George and Kimberley airports.

Just prior to the launch of SAATM, ACSA announced that it has received approval from the DEA for the construction of a new realigned runway at Cape Town International.

TAKEOFF FOR CPT RUNWAY The purpose of the project is to realign the primary runway and construct parallel and rapid exit taxiways. The new realigned runway will reach 3500 m in length and will be built to international standards. This is to improve access for larger aircraft with a wingspan of 65m or more, such as the Airbus A-380.

Construction is expected to begin in 2019, subject to all approvals and processes being completed timeously.

ACSA says that the project will result in a big boost for the local economy thanks to increased potential for the

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welcome of tourists, but also thanks to the initial R3.8 billion that will be felt by those in the Western Cape.

“This project is about growth, not only for the airport and the network of Airports Company South Africa airports, but also for the region as a whole. Cape Town has every reason to celebrate,” said Deidre Davids from Cape Town International.

But some groups have opposed the project, citing Cape Town’s ongoing water crisis as a reason to hold off.

Davids is clear that the environment remains a top priority for ACSA and every precaution will be taken to ensure a responsible project.

“The team has worked long and hard to get us to this point. We have gone out of our way to engage interested and affected parties and today we celebrate. We remain committed to being a responsible developer upholding all environmental and other requirements. Part of being a responsible developer is to be most mindful of the current water situation when we construct,” she said.

One of ACSA’s two key income streams comes from aeronautical charges or tariffs (aircraft landing and parking charges, and passenger service charges) and this new runway will enable the business to further drive revenue growth.

// OUR EMPLOYEES ARE A KEY ENABLER FOR CREATING SUSTAINABLE VALUE AND DELIVERING ON OUR STRATEGIC OBJECTIVES // TOP EMPLOYER ACSA’s second revenue stream comes from non-aeronautical income and is generated from commercial undertakings through retail operations, car parking, car rental concessions, advertising, property leases and hotel operations.

While many of these activities are outsourced to specialist partners, the process of ensuing revenue is sustainable falls to ACSA’s more than 2800 employees.

And thankfully, these employees are now members of a business which can officially position itself among the continent’s best employers.

Following its formation in 1993, ACSA moved forward as a self-confessed ‘fractured, infrastructural parastatal’ before streamlining and becoming recognised as an international industry leader that is focused, customer driven, efficient and commercially successful.

This is thanks to the organisation’s people. ACSA is now making every effort to create a positive working environment for its people, and this has been recognised.

“Our comprehensive independent research revealed that Airports Company South Africa SOC Ltd provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation and has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees,” said the Netherlands-based Top Employers Institute.

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INDUSTRY FOCUS: TRANSPORT

This certification includes the company among just a handful of South Africa’s big-name businesses which can call themselves worldclass employers. Achieving the status for 2018 marks the fifth consecutive year of recognition for ACSA. “Our employees are a key enabler for creating sustainable value and delivering on our strategic objectives,” the company states.

AWARD WINNING In December, good news was shared regarding O.R. Tambo International Airport, which was recognised among the top 25 airports in the world (1525 million passengers) according to Airports Council International.

The ACI delivers the Airport Service Quality (ASQ) survey where reviews are submitted by independent passengers.

Officially placed at number 24 on the list, O.R. Tambo International senior management thanked staff and stakeholders for their efforts.

30 / www.enterprise-africa.net

“This improvement is most pleasing and is a significant achievement over a relatively short time,” said General Manager, Bongiwe Pityi.

“In any airport, only a small fraction of the people working there are actually employed by the airport company. This means that the passenger experience depends very much on all of us being aligned and striving to put the traveller first in everything we do.

“This is why we are so appreciative of the efforts of the entire airport community over the past quarter,” she added.

The ASQ score is made up of a combination of factors combining functionality of infrastructure, ambience, cleanliness, retail mix, food and beverage facilities, way-finding and user-friendliness, and Wi-Fi access.

Pityi said the improvement in service delivery at O.R. Tambo was down to all stakeholders focusing on the long-term vision of ACSA. “No organisation can run

successfully without collaboration from strategic partners. As an airport operator, it is therefore vital for us to affirm each stakeholder and recognise how they are an integral part of achieving and maintaining service excellence at Africa’s biggest and busiest airport,” said Pityi.

This success came after ACSA airports had been recognised for excellence back in October. At an awards ceremony in Mauritius, King Shaka International was named Best Airport by Region; Cape Town International was named third Best Airport by Region and was also named as Africa’s safest airport; and Bram Fischer and Upington were also recognised for quality.

“It is heartening to see our airports once again featuring prominently in the ACI ASQ Awards, which recognise airports that are satisfying their customer’s needs,” said Bongani Maseko, ACSA CEO. “We continuously strive to improve our customer service by ensuring

ACSA

// WE CONTINUOUSLY STRIVE TO IMPROVE OUR CUSTOMER SERVICE BY ENSURING OUR AIRPORTS MEET PASSENGERS’ NEEDS UNRESERVEDLY // our airports meet passengers’ needs unreservedly. We are honoured to be recognised by ACI in this way.

“Airports Company South Africa sees these awards as an opportunity to continue to plan improvements and benchmark our levels of customer service against other airports. The data obtained through the ASQ survey provides us with valuable insights that enable us to identify what our passengers value most and what the respective airport communities need to do to achieve passenger service excellence,” added Maseko.

FINANCIAL STRENGTH In September, ACSA announced big profits and declared the 2016/17 financial year the best in its history – a win that it will hope to drive forward through 2018.

“This is probably the best set of results we’ve presented in the history of the company,” detailed Maseko.

“It’s been a stellar performance, with very good financial results,” said CFO Dirk Kunz.

He put the company’s growth down to international traffic increases.

Overall, revenues came to R8.6 billion (R8.3 billion in 2015/16); EBITDA was R5.1 billion (R5.2 billion in the previous financial year). Departing domestic passenger volumes increased by 2.1%, international aircraft arrivals increased by 2.7% and regional departing passengers increased by 4.5%.

Provision of advisory services to other non-ACSA airports also helped in ACSA’s performance. And its international contracts continued to perform well with activities in Brazil,

India and Ghana proving successful.

Going forward, capital expenditure projects including the new runway and arrivals building design at Cape Town, new parking aprons at Johannesburg, and a potential expansion at Durban (depending on continued growth) will help ACSA to achieve its longterm vision of becoming ‘the most sought-after partner in the world for the provision of sustainable airport management solutions by 2025’.

In South Africa, ACSA remains a perfect example of a well-run South African state enterprise, and continues to provide quality service for its almost 20 million yearly departing passengers. With SAATM set to boost traffic, now is an exciting time for ACSA and a great time to be involved in African air travel.

WWW.AIRPORTS.CO.ZA

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DB SCHENKER

South Africa’s

Logistics Experts PRODUCTION: Timothy Reeder

As a global industry leader with more than 140 years of logistics experience, DB Schenker is committed to providing innovative supply chain solutions that challenge the status quo, supporting industry and trade in the global exchange of goods.

//

DB Schenker is the world’s leading global logistics provider, offering solutions across land transport, worldwide air and ocean freight, contract logistics and supply chain management. Its value-added services ensure that the flow of goods continues seamlessly and supply chains stay lean and optimised for success, keeping moving a flow of

goods which allows an effective link between carriers at the world’s most important intersections. It holds top spots in global air and ocean freight and boasts Europe’s densest land transport network, achieved through a combination of rich heritage, decades of experience and the delivery of superior service.

DB Schenker’s unparalleled

network means that it holds a local, regional, and global presence in nearly every business market, For over a century, it has provided innovative logistics solutions for all modes of transportation. Schenker South Africa’s employees, meanwhile, are divided between the company’s bases in Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth and East London.

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INDUSTRY FOCUS: TRANSPORT

South Africa today boasts one of the largest economies in Africa, and is the most developed country within subSaharan Africa. It has been pinpointed and in 2010 inducted among the BRICS countries, the acronym for an association of five major emerging market economies alongside Brazil, Russia, India and China.

Jakkie Cilliers, the head of the African Futures and Innovation Program at the Institute for Security Studies (ISS) in South Africa believes that, as an association of emerging economies, BRICS will play an active role in the future. “BRICS remains important on the global stage as kind of a balance within the G20 to balance the influence of the G7 grouping,” he states.

“Certainly for South Africa BRICS remains important and if one looks at the other members of BRICS, Brazil, China,

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Russia, almost all of them have of course depended on the big heavyweight China which is the number one trading partner almost for all of these countries.

For South Africa, BRICS is very important, we are something like 3% of the total BRICS economy, but we are considered by the partners to be the leader, a leader in Africa.”

There are several central facets which combine to give South Africa such a strong position, among which it counts well-developed financial, legal, communications and transport sectors, as well as an open trade policy and a strong domestic market. It is also the best performer in Africa when it comes to trade facilitation logistics, and is among the best in terms of its transport infrastructure.

// OUR SUCCESS SHOWS THAT GOOD PERFORMANCE AND A HIGH COMMITMENT MAKES IT POSSIBLE TO WIN AND KEEP CUSTOMERS // Whilst its logistics services within South Africa are highly diversified, DB Schenker SA focusses its attention on selected key industries. Its Ocean arm comprises hi-tech vessels with the capacity to transport up to 12,000 twenty-foot equivalent units (TEUs) in one shipment - indeed, the movement

DB SCHENKER

of close to 1.8 million TEUs per annum positions DB Schenker among the world’s leading ocean logistics providers. Under its DB Schenker Air umbrella, meanwhile, SCHENKERsky’s global approach ensures the delivery of perfectly scheduled and coordinated air freight solutions.

Distribution concerns in the territory are handled by Schenkerfreightexpress (SFX), which integrates South Africa’s national land and logistics network with world-class infrastructure, logistics capabilities and global experience to service customers in 5500 destinations across South Africa and into sub-Saharan Africa. The final aspect of an extensive portfolio of service offerings is the crucial arm of Logistics solutions, which sees Schenkerwarehousing fulfil outsourced storage requirements through flexible and reliable warehousing in all major centres of South Africa.

Having established this industryleading set of service offerings, DB Schenker has for many years now been looking to further solidify its ever-growing presence in Africa, as embodied through a recent set-up in Angola and a first branch office in Mozambique. In 2005, DB Schenker in Portugal was nominated as the responsible organisation for all shipments to and from Angola on a global level. Philippe Gilbert, regional director of West Europe and responsible for countries in West Africa at DB Schenker Logistics, said that the integration of Bochimar would serve to fortify DB Schenker’s presence in Angola. “We will continue our current focus on trades between Europe and Angola, and we will certainly expand our service offering into oil and gas activities,” he concluded.

Located in Maputo, DB Schenker’s office in Mozambique is a branch office of Schenker South Africa, and is positioned to handle all in and outbound air and ocean freight shipments, as well as oil and gas projects. Dr Thomas Lieb, Chairman of the Schenker

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AG Board of Management and responsible for the worldwide business of DB Schenker Logistics, explained that: “This process will fortify our presence in Angola and will guarantee innovative and cost-efficient transport and logistics solutions from one source.

“In line with our growth strategy, we continue to intensify our own presence in interesting markets. We are convinced that future growth in the global economy will also come from Africa.”

Another significant expansion in recent years has been a strategically located centre in Kenya, five kilometres from the Jomo Kenyatta International Airport, to combine convenience and growth prospects by connecting the port of Mombasa and the East African hinterland. DB Schenker’s Regional Product Manager Logistics, Near

Middle East & East Africa Ako Dja, explains that: “It is through our quality services and excellent work that we have been able to get big clients like GlaxoSmithKline and Organo Gold, who have transferred all their storage and transport business within Kenya as well as other markets in Eastern and Central Africa to DB Schenker.”

Thomas Lieb concludes on DB Schenker South Africa’s leading position in the country: “Our success shows that good performance and a high commitment makes it possible to win and keep customers, even in an environment that is not always an easy one.”

WWW.DBSCHENKER.COM

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JAWBONE BRAND EXPERIENCES

uMhlathi to Help Jawbone Deliver Brand Experiences PRODUCTION: Karl Pietersen

Jawbone Brand Experiences is quickly growing but quickly changing. In this, its tenth year of operation, the specialist activation agency has launched a new manufacturing company and is targeting nationwide expansion.

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INDUSTRY FOCUS: MARKETING

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It is now widely accepted that effective marketing is the key to business success. Without marketing properly, businesses quickly fail. But it’s strange that, even with this knowledge, some companies cut marketing as soon as they need to find savings. American business magnate, Mark Cuban, once said: “No sales, no company.” There’s the famous anecdote about Coca-Cola, suggesting that if they stopped marketing for just one week, they would lose mass market share to Pepsi almost instantly.

Clearly, the importance of marketing remains, and as well as informing potential customers of an offering, marketing can also help to create a need for an offering. But how do you make the most of a marketing budget? How do you involve customers and embed a brand into their mind? How can you ensure that your brand is shared with customers in an effective and measurable way?

Jawbone Brand Experiences has the answers. Featured in Enterprise Africa in May 2017, this is a business that can connect brands with customers in novel and exciting ways. Forming deep

SVEN REINERTSEN - CEO

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relationships with its customers, Jawbone understands the messages and strategy that businesses want to deliver and has grown from not only being a corporate and commercial event management company but also an activations and experiential delivery specialist.

Back in 2017, CEO Sven Reinertsen told Enterprise Africa about how Jawbone had grown from a one-man-band, founded in Durban, expanded into Gauteng and operated from a residential garage, before achieving major success with international brands across SA and sub-Saharan Africa. The business had grown to such a size that it was bursting at the seams and needed extra space to hold stock and manufacture new products.

Reinertsen explains that the move to new premises is now underway but other significant changes have also been set into motion.

“From June 1 we will be in new offices on Witkoppen Road, Johannesburg. A lot of change has happened,” he says. “We’ve pivoted the business and we’re strategically creating Jawbone the activation agency and our BEE business and production hub,

// WE ARE WELLPOSITIONED AS WE HAVE A 10-YEAR TRACK RECORD AND WE HAVE CLIENTS THAT TRUST US, AND WE ARE VERY OPTIMISTIC // uMhlathi. uMhlathi will be a Level 2 BEE supplier to Jawbone and to the industry and will be open from the end of May.” As the company grows, being compliant and being able to handle an increased workload in an effective manner has driven the idea for uMhlathi. With the new entity feeding from Jawbone and the existing business strengthening current relationships with its clients, now is a new period of expansion for the business.

“The two separate entities will work very closely together, and I will step across to take the reins of uMhlathi while our COO Mitch Bowker will be more involved with Jawbone. We will be scaling up and I would hope that by 2019, uMhlathi will have 30-40 employees,” says Reinertsen.

“We did look at doing things the other way round, setting up uMhlathi as the sales side and Jawbone to handle production but it’s much easier to create employment through the manufacturing side. Our partners in the deal are a transformation advisory service they specialise in skills development and training, we are aiming to become an accredited training facility. We’d love it if people could join the team with limited skills and work for us, leaving with a trade – that’s just an ambition for now but down the line I’d really like to pursue that,” he adds.

ALWAYS BUILDING Reinertsen, originally from Durban, moved to Johannesburg before starting Jawbone with his wife in 2008. But now that the business is established and has a

JAWBONE BRAND EXPERIENCES

long track record of success, he is keen on opening up a new office in his old city.

“Durban is definitely a growth area for us,” he says. “The majority of work does come from Johannesburg as most of the decision makers are here, but part of our plan is to have a footprint in Durban by 2020.

“I will focus my attention on managing the two businesses over the next two years and then I will seriously look at opening an office in Durban, where we already have enough business to warrant a base.

SPAR and Monteagle both have head offices in Durban and require face to face meetings quite regularly; we also handle the Comrades Marathon for Energade which is a very busy time.

Right now, the team is flying down from Johannesburg to Durban on a regular basis and that is not efficient,

so we will set up a small effective team there very soon.”

Previously, Jawbone has been asked to assist on the continent as clients have grown and as the exhibition industry has

become more popular. From designing and building exhibition stands for mining conferences, to rolling out brand strategies and activations for fast food organisations, Jawbone has cut its teeth

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INDUSTRY FOCUS: MARKETING

// WE’D LOVE IT IF PEOPLE COULD COME WITH LIMITED SKILLS AND WORK FOR US, LEAVING WITH A TRADE // in Africa and enjoyed the experience.

But Reinertsen admits, without a regular largescale corporate in a certain region, the company will not be opening an office outside of South Africa anytime soon.

“We are still working in Africa,” he says. “One of our clients, Investec, recently had a stand built for the Africa Energy Forum in Sandton and in June we will be going with them to Mauritius to build new stands. There is no need for an African office at this stage, we can containerise everything from here and fly over with the team. If we can secure large contracts with blue-chip clients in Africa then we would not rule out opening an office in the right location and right situation.”

STANDOUT PERFORMER In 2016, Jawbone was on a serious growth drive, picking up some vast new contracts and growing profit by 700%. 2017 and 2018 have continued in a similar vein although the growth has not been quite as rapid. But Reinertsen remains resolute

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about the company’s position in the market. “The country has turned a corner and South Africa is now receiving more investment internationally. We are in a position where we have seen some our major competitors folding in the past few months as the industry was tight, but we play across different sectors, we managed to achieve growth and we are wellpositioned for the next few years,” he says.

“The last 12-months have been good but tough at the same time as we are going through a lot of change,” he adds.

“We are using new business management software, new accounting software, new accountants, we’ve changed our strategy slightly, we’re looking at working closer with our top clients, and we are changing how we communicate with the market.

It’s been very exciting with a lot of change but with change comes struggle and we are positive.”

Positive feeling in business has also been buoyed by the appointment of President Ramaphosa. Where there is

uncertainty and unpredictability, money can stop flowing and progress halted.

The South African economy had realised this since 2016 but with a future under Ramaphosa already looking more stable, business is upbeat.

“He is a successful businessman in his own right and apart from his political ambitions, he understands business and he understands that businesses like ours are required to grow this economy. We are well-positioned as we have a 10-year track record and we have clients that trust us, and we are very optimistic,” says Reinertsen.

MAGIC BEANS Recently, Jawbone has managed to add to its already glittering portfolio of clientele, helping to boost international coffee brand Nespresso into South Africa.

Part of the Nestlé group, Nespresso brings ethically and sustainably sourced beans to help coffee lovers create perfect espresso in their own homes. Nespresso is present in 60 countries, employs around 12,000 people, and in South Africa trusts the launch and on-theground activation management of new products to Jawbone.

“We are fortunate enough to be

JAWBONE BRAND EXPERIENCES

Nespresso’s preferred activation agency and we have already completed some exciting campaigns,” explains Reinertsen.

“We bought two old 1970s VWs and converted them into coffee vans and they are currently driving around the country.

We have done 67 activations in the past few weeks as they have been launching a new product. They came to us with just these products and we designed a campaign, fabricated the vans, came up with supporting ideas and turned it all around in less than a month.

“We like it when we can understand the client’s needs and objectives and find them solutions. While Nespresso was happening, we were also planning more activation campaigns and it’s great to be involved with a brand when we understand their objectives – that makes it a lot easier to quantify results.”

This is the perfect example of how Jawbone likes to work – getting involved from inception, coming up with the aligned concepts, helping to drive interaction, and gaining measurable results.

“It’s the only way we could operate; it’s how we want to operate. I’d rather have fewer clients and be more involved with our existing clients,” says the CEO.

And the company’s portfolio is continuing to grow, building off a base of some of South Africa’s biggest brands and adding some major global players too.

“We partnered with Nespresso, and we were recently appointed the events and activation agency for Lego in Southern Africa, we’re doing more work with Investec, so we do have global brands and it’s so far so good for 2018 potentially partnering with another very brave brand that understands who we are and how we can create memorable activations and events for them to, it is too hot to mention right who this brand is, but we are very excited.”

WINNING FORMULA Now, with 10-years’ experience behind it, Jawbone is entering another exciting chapter of its life. uMhlathi will provide a new set of opportunities and will also position the business for a new period of sustained growth. While Reinertsen looks back over the past decade as one of success, he admits that it certainly has not been straight forward.

“We have suffered to get here, it hasn’t been smooth sailing, but we have built a dynamic team and a great culture,” he says. “We understand where we are

going as a business; previously we were chasing whatever work we could get but now we are more focussed and refined and we have direction. It’s amazing to see how much more focused the team is now that we have that direction.”

With positive feelings now flowing back into the economy, with a business that has a reputation as an industry leader, and with a group of people that are experts in their field, Jawbone’s future is bright and its experiential marketing knowledge can help big-name brands achieve results.

“We have hired some new senior managers this year and Mitch and myself are looking to be more on the business rather than in the business. It’s been a good year and we have learnt a lot. We have invested heavily in assets, so it won’t be as profitable as last year, but we are very well-positioned going forward and geared for growth. While others around us are closing their doors, we are showing growth and expanding, and that in itself is a win,” Reinertsen concludes.

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AMPLE INSURANCE BROKERS

Raising the Bar in SA Insurance PRODUCTION: Timothy Reeder

Ample Insurance Brokers is in no doubt as to its overarching aim: it sets out to define the benchmark for service delivery in the Insurance Industry of South Africa. A combination of its commitment to clients, remaining innovative and professional and dealing with integrity is allowing it to keep its position as the leading broker in the business.

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INDUSTRY FOCUS: FINANCIAL SERVICES

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The South African insurance market is positioned as one of the most advanced in the world, benefitting from one of the highest premium-to-GDP ratios and a wide cross section of well-regulated and innovative insurers. Although the market is set to become more sophisticated with the introduction of new legislation, the vast majority of the country remains unbanked and either uninsured or underinsured, as research from the Oxford Business Group demonstrates.

Additionally, financial inclusion is still limited in the territory, with basic policies like auto or property liability insurance only optional even today, which itself is a rarity in the developing world - both in Africa and beyond. This means significant opportunities for local and regional players suddenly present

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themselves, as the focus switches to coming up with more inclusive products that meet the needs of low-income customers. In addition to providing much-needed coverage, the segment is also expected to unlock substantial growth potential for insurers in the years ahead.

Ample Insurance Brokers is superbly placed to capitalise on all of the potential still left to harness within this sector. The values at the core of the business seen it attain the lofty status it enjoys today, and it has come to be known for being trustworthy, connected and committed to offering personal attention, reliable and modern while always dealing with integrity. It is the innovation that underpins its service provision which could arguably be pinpointed as Ample’s most valuable characteristic; in an economy that

is constantly changing it is more important than ever that clients are kept constantly informed of changes to the Insurance Industry that might affect cover.

According to Ample Founder and Managing Director, Eileen Stoffberg; “we are a very fast paced innovative company. We adapt together with our clients’ needs.” This policy of considering the needs of each individual has been key to Ample’s success, as Stoffberg continues. “We take what we do very seriously,” she underlines, “and subsequently we are always looking for products in the market that will suit our clients’ changing needs. Our aim has always been to offer everything a client could need around insurance.”

This has meant that time and again Ample has emerged as the preferred choice for its growing list of clients,

2018/03/01 11:32

AMPLE INSURANCE BROKERS

// WE ARE A VERY FAST PACED INNOVATIVE COMPANY - WE ADAPT TOGETHER WITH OUR CLIENTS’ NEEDS // even among an ever-growing sea of competitors offering, at first glance, similar products. Ample’s recognition that time is precious leads it to therefore make getting the right cover as simple as possible, taking away the dual headaches of amassing quotes and completing lengthy paperwork. The value of people, too, and above all the importance of working as a team, has been a critical aspect of Ample’s success.

“I can attribute Ample’s success to ruthless persistence and outstanding people who are self-motivated and do not need to be managed,” states Stoffberg. “We are well rounded and ensure we understand the needs of our clients, and we invest in people that have potential and help them get the

experience and skills required. 95% of all Ample staff are under 35, so youth development is a great part of our business.”

According to PWC’s Global Fintech Report 2017, Ample Insurance’s ceaseless desire to remain at the forefront of the available technology may stand it in even better stead than ever in years to come. Perhaps more than most sectors, insurance companies have been accelerating efforts to keep pace with trends reshaping the market in a bid to close the gap with other financial sectors. The latest of these, and currently the most widely discussed, is artificial intelligence (AI) technology, such as robo-advisors and chatbots. These are beginning to play an increasingly active role in the financial services industry, and local insurance providers are capitalising on the trend and the increased support behind it.

Vera Nagtegaal, the executive head of Hippo.co.za, points out that in the advent of AI means that humans are getting used to talking to computers, and robo-advisers are

quickly dominating the financial services industry. They are employed in functions ranging from risk analysis and mitigation services to regulatory compliance and client interaction Roboadvisors are a class of financial advisers that provide financial advice online with moderate to minimal human intervention, based on mathematical rules or algorithms.

“The number one reason for deploying a chatbot in the insurance industry is time availability,” explains Nagtegaal. “So much of insurance is about answering frequently asked questions and then crunching the numbers relating to a specific query or claim. Since this can be done effectively and efficiently by AI without causing dissatisfaction to the customer - and in many cases, actually boosting satisfaction - this is a solution that many global companies are looking into.”

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CAVMONT BANK

Striving for Banking

Excellence PRODUCTION: Timothy Reeder

From humble beginnings, Cavmont Bank’s 270-strong staff compliment now serve the more than 50,000 customers who place their faith in its superior personal and business products and services, benefitting from the lessons it has learned in its quarter-century of service.

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Since the first branch of Cavmont Merchant Bank opened in October 1992, its reach has grown to see it stand now as one of Zambia’s foremost commercial banks. Through its network of 19 branches spanning the country it is perfectly placed to deliver its diverse range of personal banking, business banking, corporate finance, investment, mortgages and loans products. Its 270 employees are stationed at key

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outposts in Lusaka (6), Chingola, Ndola, Kitwe (2), Chililabombwe, Mbala, Mpulungu, Solwezi, Chipata, Kasama, Mansa, Mwense and Mufumbwe.

Cavmont Bank as we see it today was established in January 2004, the product of a merger between Cavmont Merchant Bank and New Capital Bank, both incorporated in 1992. In 2007, Cavmont Bank’s search for a strategic investment partner was concluded when the Namibian

group Capricorn Investment Holdings acquired a 44.2% shareholding. CIH is perhaps best known as being the owner of Bank Windhoek, a commercial bank operating in the Namibian market, established in 1982, when a group of Namibian entrepreneurs took over eight local branches of Volkskas Bank.

CIH announced in May last year the conclusion of its purchase of Cavmont Bank, having also taken full

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INDUSTRY FOCUS: FINANCIAL SERVICES

// OUR AMBITION IS TO ENSURE THAT WE CONTINUE TO IMPROVE AND THAT EVERYONE WHO ENTERS A CAVMONT BRANCH ASSOCIATES US WITH OUR FELLOW WORLD CLASS FINANCIAL SERVICE PROVIDERS // control of Botswana’s Bank Gaborone.

By increasing its stake in Cavmont it took a 97.99% effective shareholding in Cavmont Capital Holdings Zambia, which owns 100% of the share capital of Cavmont Bank. “With effect of 1 January 2017, Capricorn Group holds 65% shareholding in Capricorn Investment Holdings Botswana, which

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in turn holds 100% of the share capital in Bank Gaborone, and with effect of 1 January 2017, Capricorn Group holds 97.9% effective shareholding in Cavmont Capital Holdings Zambia, which owns 100% of the share capital of Cavmont Bank,” the group clarified.

Capricorn, recently awarded AA status by the Global Credit Ratings

Co. (GCR), made clear the importance of the acquisition to its wider aims.

“The transaction is seen as a key enabler towards achieving Capricorn Group’s aim to diversify the business interests of the group and expand its footprint outside Namibia,” said the group of this piece of business, before underlining the potential it saw to fortify the bond between geographically distant entities: “This transaction will also strengthen the already close collaboration and alignment between the entities in the three countries through the shared interest held by Capricorn Investment Holdings.”

The many strategic decisions in

CAVMONT BANK

its lifetime have all been pivotal to allowing Cavmont Bank to notch up its 25th year of service. Of the recently attained landmark in its history, CEO Charles Carey was characteristically humble, while pausing to recognise its significance. “It’s a big deal,” he began, “25 years of operating is quite the milestone. While we haven’t paraded around in a marquee fashion, we’ve recognised our key stakeholders who have supported us over that quarter century and we feel that was is appropriate way to have marked it.”

With the full weight of these 25 years’ experience behind it, Cavmont Bank now strives for global recognition for excellence in its sphere.

“Our ambition is to ensure that we continue to improve and that everyone who enters a Cavmont branch, from any market, associates us with our fellow world class financial service providers,” sums up Carey.

“We’re keen to make sure that the infrastructure underpinning our products and services is as robust in

// ATM Solutions - Cash on hand It may be a 50 year old machine, and payments technology may be moving at the speed of light, but the ATM remains at the heart of cash globally; this is according to Wayne Abramson, CEO at ATM Solutions.

It’s a bold statement but Abramson and his team believe that despite the rapid changes facing the payments industry with the evolution of digital payments, e-wallets, etc, cash will always be an important part of the payments pie. Consumers are comfortable with cash – it’s universally trusted and accepted, there’s a perception that it’s free, it’s anonymous and quick to handover.

Started in 2000 to provide consumers with easier access to their cash, ATM Solutions now owns and operates a network of over 5 300 ATMs across sub-Saharan Africa and Eastern Europe. The company understands the markets in which it operates and for this reason has pioneered solutions like Drop Down ATM Kiosks that simply needs a plug point to operate, and solar-powered ATMs for locations that have intermittent access to power, and cash recycling ATMs that verify notes for counterfeit.

ATMs continue to attract customers into retail stores and research shows that up to 40% of cash withdrawn instore is spent in-store. Retailers can cash their own machines from their tills, saving on cash deposit fees, and merchants earns transaction fees on all transactions.

“Our main aim is to connect people to their money, and businesses to their customers,” says Abramson. So, while cash continues to be king, ATM Solutions continues to be the independent ATM provider of choice across developing economies.

INDUSTRY FOCUS: FINANCIAL SERVICES

Zambia as it would be in London, for example, or New York.”

Ensuring such growth is dependent on fulfilling myriad different requirements, but without doubt one of the biggest challenges facing financial services organisations is embracing digital transformation initiatives: integrating data while still maintaining business continuity.

Fortunately for Cavmont Bank and its aspirations, another Capricorn Group company, Veeam Software, was on hand to provide the assistance required.

Working with its partner Complete Enterprise Solutions, Veeam rolled out its availability

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solutions encompassing backup and replication functionality to the three banks in the group - Bank Windhoek, Bank Gaborone and Cavmont Bank in Zambia. “While the initial requirements focused on backup and some replication, our evolution into a more mature financial services group meant we needed more measurement elements around our data availability.

After all, you can only manage what you can measure,” stated Johan Maritz, lead technical platform specialist at Capricorn Group.

Another central aspect of Cavmont’s growth strategy concerns the physical expansion of its footprint, which will take the form of six new

branches in Zambia. “There are large swathes of Zambia that are underserved at present by Cavmont,” is Carey’s assessment. “We have established our credibility in the market, we have a brand that people trust and we have won a number of different accolades both locally and internationally.

“We have put a lot of effort into building up our presence and being able to extend our brand credibility across different geographies, so the six different towns we anticipate moving into will help complete our footprint and support our customers who have a growing need of nationwide coverage,” Carey concludes.

CAVMONT BANK

// WE HAVE PUT A LOT OF EFFORT INTO BUILDING UP OUR PRESENCE AND BEING ABLE TO EXTEND OUR BRAND CREDIBILITY ACROSS DIFFERENT GEOGRAPHIES // Capricorn Group was able to announce solid interim results for the period ending 31 December 2017, with profit after tax increasing by

6.4% compared to the previous year, despite continued hostile operating conditions. According to the Namibia Statistics Agency (NSA), the economy remained in the grip of a recession during the second half of 2017, while the environment in Botswana also remained challenging, including a decrease in market liquidity as investors search for higher yielding assets in other markets.

“During the period under review the group was faced with a number of challenges including reduced liquidity, reduction in interest rates by central banks, the increased cost of funding and the reduced appetite of clients interested in taking up loan facilities,”

said Thinus Prinsloo, Group Managing Director. “Notwithstanding the effect of the challenges mentioned above applying pressure on our interest revenue margins, amongst others, and after tax profit,” finished Prinsloo, “we are proud of the fact that we have continued to fulfil our commitment of being a catalyst of sustainable opportunities to all of our stakeholders in all the regions we operate in.”

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SASRIA

Offering Security in Uncertain Times PRODUCTION: William Denstone

Sasria is South Africa’s only short-term insurer that provides affordable voluntary cover against special risks such as civil commotion, public disorder, strikes, riots and terrorism.

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INDUSTRY FOCUS: FINANCIAL SERVICES

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Sasria was formed in 1979 as the South African Special Risk Insurance Association, in the wake of the increase of protests following the 1976 student uprisings in South Africa. Managing Director Cedric Masondo explains, the rationale behind Sasria’s formation was initially to provide insurance cover for such special political risks as political riots and terrorism. “Buildings were damaged by students and insurance companies didn’t want this type of business,” he states, “so they put in exclusions that damage caused by political riots wouldn’t be covered.

Because there was a market failure, the government needed to intervene, so this company was formed.”

Following success from its inception, Sasria’s mandate was further

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extended in 1998 to see the cover it could offer include non-political perils such as strikes and labour disturbances, keeping it set apart from every other insurance company. It was then converted to a limited company in 1998.

Nowadays, every South African with an insurance policy for a house or car pays a premium to Sasria, starting from as little as R10 a month, and Sasria’s unique cover makes South Africa one of the few countries in the world to provide this insurance, particularly at such affordable premiums.

The extensive range of Sasria products is available to any individual, business, government or corporate entity that has assets in South Africa. Its overarching aim, and central mandate, is to help nurture and support both positive growth and change in South

Africa by providing risk cover that offers certainty in a world that is often anything but certain nor predictable.

This is still true of South Africa, in spite of the recent heightened political stability achieved in the country.

While it may not be true to say that we are seeing a return to 1976 levels of unrest, Sasria’s payouts still rose 31% in 2016, largely because of the fallout from students in the #FeesMustFall campaign. Of the R766m claimed for the 2017 financial year, student protests accounted for R325m, or 42%.

Masondo speaks of the unpredictability, and the way that these damages can occur seemingly from nowhere, that makes Sasria cover such a sensible, essential provision. “The nature of our insurance is man-made catastrophes,” he begins. “In our society

SASRIA

// IT’S A SAD REALITY THAT WHEN PEOPLE WANT TO MAKE A POINT, THEY DAMAGE PROPERTY // sometimes mob mentality dictates that people will do things that they will not do when they are on their own.

“It’s a sad reality that when people want to make a point, they damage property. What’s worrying here in South Africa is the frequency…here it’s become day to day, with roads being blocked and cars damaged.”

Despite the necessity of such protection, it is no secret that there exists still a general feeling among consumers and business owners that insurance is a ‘grudge purchase’, due to the perceived high premiums that many people have to regularly pay.

Masondo himself estimates that only 2% of township residents have insurance, which includes spaza shops, routinely looted in attacks. “One time I was in Rosebank,” he recounts, “when there was a post office strike and someone petrol-bombed a post office vehicle.

Within a week, we got that claim. For the township riots, whenever shops are looted, we don’t get any claims because they don’t have cover. They’re the ones getting hit by service-delivery protests.

“It’s sad because the spaza shops have nothing to do with the complaints and they’re the real victims. Those people have lost all their stock and no one even bothers to talk about them.”

The specialist role that Sasria plays makes it arguably most appealing to businesses, as it gives them the ability to quickly and efficiently restore their liquidity and recommence operations after experiencing loss or damage resulting from the special risk events against which the cover is designed to protect. It is central to preventing job losses, maintaining livelihoods, restoring pride and dignity and

facilitating economic stability in the event of such unrest.

Sasria has undertaken extensive research to pinpoint where insurance cover is needed most in the South African market. Its findings reveal that the need for inclusive insurance is becoming increasingly relevant in the local environment, and as a consequence, is working on bringing a solution to those small and mediumsized businesses (SMEs) who form part of the lifeblood of a community, such as spaza shops. “When their assets get damaged due to protests or are looted, the actions of a few people cause the whole community to suffer,” says Fareedah Benjamin, Sasria’s Executive Manager for Insurance Operations.

“We’re taking the cover we offer for specialised risks (including, among other things, material damage, business

www.discovery.co.za

interruption, money, goods in transit and motor and construction risk) to SMEs in the uninsured market,” says Benjamin. “If something happens to these establishments, they are very exposed; if their shops are looted, it will take a long time to recover the damage.” Benjamin notes that in the past, there has been a limited amount of insurance products offered to SMEs, especially those operating in an informal environment. “Additionally, many people believe that insurance is an expense they can’t afford to carry.

Our traditional products have been very affordable in terms of what we offer. We’re taking the existing product and aligning it to the limit and cover in terms of what the client needs and what we can cover.”

In response to the long-standing and often inaccurate perception of

@Discovery_SA

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Discovery Insure Ltd is an authorised financial services provider.

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INDUSTRY FOCUS: FINANCIAL SERVICES

// WE WANT TO UNDERSTAND THE TRIGGERS BECAUSE THAT INFORMS US ABOUT TRENDS THAT ARE GOING TO GET WORSE // insurance as an unattainable luxury, Sasria is developing a business model which will see it target a new segment of the market - those people who do not want or cannot afford regular insurance, but do wish to purchase Sasria cover, perhaps because previous of damage to or looting of their property. To reach them, the organisation will adopt a hybrid model in which it still operates on the back of traditional insurance

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policies, but also now markets its services directly to the public.

A test phase in the townships will take place in 2020, and in the meantime Sasria will continue to analyse the risks facing South Arica and ensure that it has sufficient income from its premiums and its investments to keep pace with the ever-present threat of disorder. As Masondo states, this has led to the company consulting sociology professors at several universities to try to pinpoint the reasons behind disruptive behaviour. “We want to understand the triggers because that informs us about trends that are going to get worse,” he says. “It’s our job to inform the government and tell them where the riots are coming from, and the cause.”

Letlhogonolo Tau, Customer Relations Manager at Sasria, has also declared the importance of having

insurance covering special risks for property owners, exactly because unforeseen circumstances are now a part of daily life. “Having insurance is a way to protect your assets,” is his belief.

“In most cases, home and business owners purchase properties that are bank financed. If the property is burnt during a strike and you don’t have insurance cover on the property, then banks expect you to pay for damages and the remaining loan.”

Sasria has standard insurance that could cover damages up to a value of R500 million, depending on the cover taken, which is ideal for homeowners and small businesses. For many, meanwhile, the purchase of a car is one of the most expensive that will be made in a lifetime. At times of unrest, however, they are some of the first and most valuable elements in the firing line of rioters. In September of last year, for

SASRIA

// OUR PERFORMANCE UNDERLINES OUR COMMITMENT AND ABILITY TO HONOUR OUR CUSTOMERS’ CLAIMS // example, during a protest which was possibly related to a mineworkers’ strike, a truck and a bus were set on fire in Lephalale, Limpopo. This was followed in August by three cars being burnt and another 15 vehicles damaged in Westville, outside Port Elizabeth.

To insure a vehicle for private use against strikes or unrest only costs from R2 per month or R20 per annum, and in the case of the total loss of the vehicle,

Sasria will pay out the retail value of the vehicle. For individuals this means peace of mind, but, for business enterprises that use vehicles in the delivery of services and good, this sort of insurance can mean the difference between success and failure. Sasria offers special risk cover for cars, light delivery vehicles, commercial vehicles, fleet vehicles, car dealerships, mobile plants, taxis, express service buses and trailers.

“It is my pleasure to report on another solid year for Sasria, despite a dramatic increase in claims and difficult macro-economic circumstances,” begins Masondo’s assessment of the past twelve months for Sasria, a year which has seen a 9.5% increase in gross insurance premiums to R1.84 billion and net investment income increase over 40% to R413 million.

“Taking the challenging operating context during this year into account, it

is evident that we have again delivered a solid performance,” he goes on.

“Above all, we continue to cover South Africans against the special risks of civil commotion, public disorder, strikes, riots and terrorism and pay all valid claims promptly in line with our status as a financial safeguard against these potentially catastrophic events. Our balance sheet remains strong, with the SAM solvency capital requirement (SCR) cover ratio at 246%. Our performance underlines our commitment and ability to honour our customers’ claims.

“Despite the challenges facing our country and our industry, we remain committed and confident in our ability to deliver on our mandate and strategy.

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BROLL FACILITIES MANAGEMENT

Africa, Broll Has

You Covered PRODUCTION: Manelesi Dumasi

With an increasingly positive economic outlook, sub-Saharan Africa has the opportunities that international organisations are looking for. But how do you set up on the ground without wasting time and money? Broll can ensure your facilities are utilised and manged effectively. www.enterprise-africa.net / 59

INDUSTRY FOCUS: PROPERTY

//

Property management is perhaps one of the most challenging elements of running a successful business. First, there’s the decision on location – get it wrong and customers and suppliers can’t find you, your reputation can be damaged, and potential employees can overlook you. Second there’s size – too big and you’re wasting money, too small and you’re inefficient and trapped with no hope of expansion.

Then there’s cost – pay too much and your margins are under pressure, pay too little and perhaps you’re not getting what you could. Then of course, there’s intangible elements like history – do you move away from a historic home just to save money? This could again damage reputation. And these

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are just a few of the considerations for modern businesses – in reality, there’s a mass raft of considerations that have to be taken into account.

Your physical property protects your intellectual property, and that is, in many cases, now the most important asset of any business. This is where business property managers come into their own. Successful businesses require a lot of time and attention and entrepreneurs rarely have enough time to focus on anything but business so utilising a property manager so that you can focus on your core business is wise – especially if you have a large property portfolio. Property managers can handle clients, security, repairs, maintenance, expenses, vacancies and much more. But choosing the

right property management partner is a challenge – this is a competitive industry with many recognised names providing top-level service. In Africa, big-names from around the world have moved in to try and take a slice of the continents growing economies. But the local businesses are often more experienced with regional conditions and knowledgeable about local regulations.

Broll Property Group has been helping companies achieve their property goals for 43 years. This property specialist has become an international success thanks to its dedication to its craft. Some of Africa’s biggest companies including MTN, Accenture, Vodacom and many more have entrusted their property to Broll.

BROLL FACILITIES MANAGEMENT

// WE CONTINUOUSLY WORK HARD TO PROVIDE OUR CLIENTS WITH EXCELLENT CUSTOMER SERVICE AND A HUGE THANK YOU GOES TO ALL OUR CLIENTS FOR THEIR CONTINUED SUPPORT // After its formation in 1975, Broll quickly went about building a reputation for quality and a customer-centric approach. Today, it still lives by those values, despite its titanic size and reach across the continent. Broll operates in South Africa, Angola, Cameroon, Ghana, Indian Ocean Islands, Ivory Coast, Kenya, Malawi, Mozambique, Namibia, Nigeria, Swaziland, Uganda, Zambia and other African countries.

“We are affiliated to CBRE, a renowned global commercial real estate and investment firm which enables us to offer unrivalled local expertise and

global market knowledge with the sole purpose of maximising the potential of your property,” says CEO Malcom Horne.

“We offer services which include auctions and sales, facilities management, industrial, investment and office broking, occupier services, property management, retail leasing and projects, research, shopping centre management, valuation and advisory services, own patented Broll-Online property-management software solution and a property search function with a vast database of properties across South Africa and sub-Saharan Africa

where we have operations,” he adds.

As of September 2016, Broll’s Facilities Management division was headed by new-man (but industry veteran), Richard Pule Flame. His experience in the government space made him the ideal candidate for Broll FM, which previously explained to Enterprise Africa that it had set sights on state businesses, especially hospitals, to help it achieve growth targets.

“I believe in the notion of a shared vision and having to depend on a team that are aligned to this singular vision,” says Flame. “It is important that the products and service we create for our clients must be benchmarked against best practise and ascribe to excellence.”

In 2017, the level of quality delivered by Broll was recognised by the PMR Golden Arrow awards which awarded the company Silver in its

• Lighting maintenance • Electrical maintenance • Electrical installations and design • Energy Effciency • Infra Red Reporting • Supply of product and lamps

A Strong African Footprint

National Call Centre: 0860 772 759 / 0860 SPARKY We Cover: • Johannesburg • Bloemfontein

• Namibia • Durban • Port Elizabeth

www.centrelec.co.za

• Cape Town • Pretoria • Windhoek

• Bostwana • Zambia • Swakopmund

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INDUSTRY FOCUS: PROPERTY

Facilities Excellence category. Previously, Broll had claimed Gold in 2015, Bronze in 2014 and Gold in 2013.

“We continuously work hard to provide our clients with excellent customer service and a huge thank you goes to all our clients for their continued support,” said Flame.

“We are proud of our FM teams that have worked tirelessly in the pursuit of excellence and customer satisfaction – without our dedicated people, we could never succeed,” he added.

This success came during a period of uncertainty in South Africa, with former-President Zuma’s time in office coming to an end, an unpredictable economic picture, and the underlying ‘state capture’ current, but Broll remained positive.

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“For the commercial property industry, 2017 can be seen as one in which the industry showed real resilience and, in many cases, creativity in spite of the uncertain economy,” the company said. “Common themes included the globalisation of the JSE-listed Property Sector with growing offshore holdings, additional JSE listings including SA’s first student housing fund, transport-oriented development, urban regeneration, a growing investment focus on the residential sector and the impact of logistics and technology on retail and consumer habits.

“One can only hope that 2018 will bring the policy certainty and focus that will allow us to take advantage of the current positive global economic climate and shrug off the negativity of 2017.”

And with the appointment of Cyril Ramaphosa to the top job, it looks like policy certainty will now shine through and business confidence is returning to the market. This is the view of Malcom Horne who recently wrote for Bizcommunity: “In sub-Sahara’s capital cities, urbanisation is taking place on a scale not seen since the 19th century in Europe… Improved technology has resulted in companies optimising space due to the changing needs of customers… From Nigeria to Cape Town, down the Indian Ocean coast to Maputo in Mozambique and offshore to Mauritius, which has most fully embraced the principles and practices of free market economics, there are many opportunities for those who do their homework.”

BROLL FACILITIES MANAGEMENT

// WE ARE PROUD OF OUR FM TEAMS THAT HAVE WORKED TIRELESSLY IN THE PURSUIT OF EXCELLENCE AND CUSTOMER SATISFACTION – WITHOUT OUR DEDICATED PEOPLE, WE COULD NEVER SUCCEED // When it comes to outsourcing, the opportunities for the SA economy, and for property management in particular, have been identified by Deloitte which said in a recent report: “South Africa is emerging as an outsourcing destination with a growing English-speaking population, which is qualified and further supported by a time zone that overlaps with most of the regions. Cost savings, revenue-generating services, presence of large outsourcing service providers and buyers, the availability of French, Portuguese, and Dutch speaking talent is also favouring South Africa as the next outsourcing destination for the developed world.”

As international investors return to

SA to take advantage of the prosperity promised by Ramaphosa, Broll stands in a perfect position to offer its services to all that arrive looking for quality - bricks and motor remains a source of wealth creation, and so must be manged effectively.

“We always put our customers first; for us, that is the most important thing,” says Broll Nigeria CEO Bolaji Edu. “The Broll brand is recognised in Africa and it gives comfort to people,” adds Rhoy Ramlackhan, Director Broll Mauritius.

“The customer is the base of our business and our service is to provide them with the best knowledge,” confirms Nuno Sá Fialho, Commercial Director at Broll Mozambique. “Clients want an end-to-

end solution and so they are saying ‘don’t just look at my hard or soft services, give me an end-to-end service so that the issues around risk with respect to facilities are taken care of’,” says Richard Flame.

And Broll will continue with its African expansion as it looks to West and East Africa for opportunities. With this in mind, the company appointed a new Chief Exec of its Ghana division. As of December, Joseph Amo-Mensah heads up Ghana and he is hoping to “move the organisation to the next level.”

Broll is an industry leader, of that there is no doubt. Broll has some of the most highly skilled and knowledgeable staff on the continent. Its reach and experience is unrivalled and any business moving into, across or around Africa will benefit from partnering with Broll.

WWW.BROLL.COM

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ATTACQ

More Big Names Arrive At Waterfall PRODUCTION: Karl Pietersen

As one of the most attractive listed developers in SA, and with the burgeoning Waterfall City project now fully underway and starting to realise its potential, Attacq is entering a very exciting period. Transitioning to a REIT and frequently welcoming big-name residents, all is flowing nicely in Waterfall for Attacq.

//

Group 5, Massbuild, Cell C, Altech, Cummins, Novaritis, PwC, Drager, Honda, Standard Bank, Virgin Active, Diageo, Schneider Electric, Dimension Data, BMW, Deloitte – what do all of these major international powerhouse brands have in common? In South Africa, they have all moved to, or are in the process of moving to, Attacq’s Waterfall City development, between

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Johannesburg and Pretoria.

Located across a mass site from Modderfontein in the east beyond Kyalami in the West, on both sides of Gauteng’s N1 highway, Waterfall City is being marketed as the new economic hub of Africa where people can live, work and play.

With the impressive Mall of Africa at its heart, Waterfall City is quickly growing to become Gauteng’s

new CBD. Spearheaded by Attacq (South Africa’s premier property company, delivering exceptional and sustainable growth through real estate investments and developments) which was formed in 2005 and listed on the JSE in 2013, the Waterfall development is the described as Attacq’s ‘jewel in the crown’.

Speaking to former-Attacq CEO Morné Wilken in November 2016,

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INDUSTRY FOCUS: PROPERTY

Enterprise Africa discovered that the business was performing very well despite a bleak economic outlook.

“We were very pleased,” he said of the company’s 2016 financial results.

But today, Wilken is gone (he’s now the CEO of MAS Real Estate, a company 30.6% owned by Attacq, which focuses on commercial property in European markets) and CFO Melt Hamman has stepped in as interim CEO.

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Despite the reshuffle, the company continues on the growth path, and activity at Waterfall continues to gather pace.

Cascading across Gauteng’s northern suburbs, a host of big names have taken the plunge and relocated to Waterfall. When Attacq acquired the development rights in 2008, it was clear that the company was on the crest of something big. After

moving through the knickpoint that was the 2008 GFC and successfully navigating the whitewater-like SA political environment, Attacq is now comfortably sailing through flat water as Waterfall continues to thrive.

One of the recent announcements has fuelled the positive feeling at Attacq was the ground breaking event which marked the start of construction of the new Deloitte

ATTACQ

Africa HQ at Waterfall.

Deloitte Africa, Atterbury Property and Attacq came together to celebrate at the sod-turning ceremony in November. When complete, the facility will cover 42,500 m2 and will be made up of ultra-modern office space. The project is set to be completed in 2020.

“We are very excited about our new custom-designed headquarters for Deloitte Africa in what is clearly a sought-after corporate destination,” said Mike Jarvis, Chief Operating Officer at Deloitte Africa. “This new centre of operation gears our Africa firm to attract the best talent, serve our expanding market, and consolidate approximately 3700 of our people to make an even greater impact with our clients and communities.”

Described as a ‘landmark development’, the six story office building will have a 2000 bay parking facility and will be designed to meet green building conditions.

Architecture practice Aevitas designed the new Deloitte headquarters to comply with a Silver LEED (Leadership in Energy and Environmental Design) Green Rating on completion.

“Deloitte’s new offices will see them enjoy an excellent position in the sought after location of Waterfall, Gauteng. Here, they will consolidate their operations in the region in a central location. This development will not only provide Deloitte with room to grow as a business, but also be an asset that supports them in attracting new talent and continuing to serve their expanding market,” said Atterbury CEO, Louis van der Watt.

And Deloitte’s news was not the only exciting announcement of recent times for Attacq. Other big names also made their growth ambitions clear by choosing Waterfall as their home. Both Cummins and Accenture will soon take residence in the exciting new city.

Cummins is the global leader in power generation solutions and the company celebrated the start

of construction of its new Southern Africa Regional HQ in October. As part of the Waterfall Logistics Precinct, the new Cummins site will be a 15,000 m2 facility comprising a service and engine rebuild centre, warehouse with specialist installations and office space. Expected to be completed by the end of 2018, the new building will allow the company to consolidate its operations in the region by bringing its Master Rebuild Centre, Gauteng Operations Workshop and Southern Africa Technical Training Centre all under one roof.

“This new facility will help bolster our operations in Southern Africa through the greater overall efficiency that comes from combining multiple activities under one roof. Furthermore, the benefit of having our office and servicing centres in the same location

streamlines operations, enabling us to deliver even better on our promise of excellent customer service and support,” said Thierry Pimi, MD of Cummins Southern Africa.

Pete Mackenzie, Head of Development at Attacq was equally excited: “We are excited about embarking on this journey with Cummins and believe that, once complete in November 2018, the Cummins Southern Africa building will be a pioneering development within our logistics hub. We welcome Cummins and are thrilled they chose a home with us,” he said.

Most recently, in February, global professional services company Accenture celebrated the sod-turning ceremony of its new Southern African offices at Waterfall. The new 3875 m2 facility will contain the

INDUSTRY FOCUS: PROPERTY

very best urban design principles and sustainability values. Melt Hamman said he was “thrilled” that Accenture had chosen Waterfall for this investment and Attacq’s partner on this project, Zenprop, said it was

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pleased and excited about the project.

These are just the latest in a swathe of movements from around the region into Waterfall City. Back in March 2017, BMW SA announced that it would develop a Regional

Distribution Centre. This 32,000 m2 project is set to be completed mid2018 and BMW Group South Africa and Sub-Saharan Africa CEO Tim Abbott said: “Improved warehousing and distribution is a key success factor, as we keep upping our game in customer service delivery. Space limitations restricts the expansion of the warehouse in our current location in Midrand. By moving the warehouse to a larger site, we also free up space on our campus to create state-of-theart power hub.”

Next for Attacq is its move from capital growth fund to REIT (Real Estate Investment Trust). This will allow the business to declare dividends for shareholders. South Africa adopted the REIT structure six years ago, replacing property unit trusts and property loan stocks, to bring local companies in line with global tax and regulatory standards.

ATTACQ

// ATTACQ IS WELL PLACED TO CONTINUE TO CREATE VALUE FOR ITS SHAREHOLDERS AS THE COMPANY PROGRESSES ON ITS JOURNEY TO BECOMING A REIT // Moving to REIT format has long been an ambition for Attacq and the process is set to be completed later in 2018. Now is an exciting time for the business with a further 1.2 million m2 of development bulk still remaining.

This is good news for shareholders, considering the Mall of Africa alone has displayed strong performance since its opening in

2016. Since then, it has received more than 13 million guests, averaging around 1.2 million per month (strongest months were May 2016 with 1,537,661 visitors and December when 1,517,899 visited). The Mall of Africa achieved a turnover of R3,427,184,526 for the eleven months of trading to March 2017, at an average of R311,562,229 per month with a highlight month of R491,145,650 turnover achieved in December 2016. According to Attacq, people are spending roughly R250 per visit (for the 11 months to March 2017) and trading densities for the same period averaged R2630 per square meter. The renewable energy systems that have been installed, including the solar rooftop installation, are helping the area to offset carbon emissions and reduce coal and diesel consumption.

Until a new full time CEO is

installed (which should happen in the coming months), Melt Hamman will undoubtedly take the business forward on a sustainable footing.

“With our leadership team, collective business expertise and industry knowledge, we remain focused on the company’s strategic goals and the transition to convert to a REIT by the end of the 2018 financial year,” said Attacq Board Chairman, Pierre Tredoux. “We are confident that Attacq is well placed to continue to create value for its shareholders as the company progresses on its journey to becoming a REIT, and have full confidence in Melt’s abilities to deliver on this in the interim.”

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BRIGHTS HARDWARE

Save Water

With Brights PRODUCTION: David Napier

Every small water saving that can be made by individuals and businesses is a positive step in aiding South Africa’s fragile water stock. And it can be easier than you think – just take a trip to any of the Brights Hardware stores across the Western Cape and you’ll be able to pick up water saving products that will help the country and save you money.

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INDUSTRY FOCUS: RETAIL

//

The infamous but dreaded water crisis being felt across South Africa right now is being fuelled by those who are not adhering to water guidelines and who are refusing to conserve. Often, people and organisations simply don’t have the infrastructure to undertake water conservation activities, but that looks set to change, in the Western Cape, where Brights Hardware, one of the leading hardware retailers, is helping the community as much as possible.

Partnering with East Londonbased Eco Tanks, Brights is hoping to encourage businesses and residents to capture rain water and grey water, recycling water as much as possible so that the dams have more muchneeded time to replenish.

“We have invested in a wide variety of water saving products to enable us all to save as much water as possible,” Brights CEO Orlando Luis told Enterprise Africa. “We have sourced products that reduce the evaporation of water and items that save water. For example, we’re offering pool covers, units to connect to taps

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to reduce the flow, new shower heads to ensure less water is used, tanks for storing grey water, cleaning products that require no water and garden watering products that control water usage - these are only the tip of the iceberg.”

Regarding Eco Tanks, Brights has slashed the prices of these innovative products to encourage community uptake in the Western Cape. “We always want to give back to the community in whatever way we can and there is no better project than this. Eco Tanks has supplied us with a number of 1000l tanks for use with community companies and NGOs – organisations such as churches, schools and clinics. All that we require is for them to apply online or bring a letterhead to any of our stores throughout the Western Cape and we will assist with a voucher of R595 which can be used for a tank to catch rain or grey water,” Luis said during a radio interview with Tygerberg radio.

This particular idea was demonstrated by Brights at Ned Doman Secondary School in Athlone,

// WE HAVE INVESTED IN A WIDE VARIETY OF WATER SAVING PRODUCTS TO ENABLE US ALL TO SAVE AS MUCH WATER AS POSSIBLE // Cape Town. The company donated three 5000l tanks after learning of the school’s challenges in saving water.

“Brights has always been passionate about helping the community in whichever way possible, and this is no exception. Ned Doman Secondary School has shown great initiative, and our aim is simply to support them in this endeavour,” said Luis.

The school’s existing water storage infrastructure is helping to save water by collection rain to help maintain the gardens. Now, with the new tanks, the school will also be able to use recycled water for toilets as well.

BRIGHTS HARDWARE

“We will be forced to adapt to the shortage of our most precious resource, water,” Luis summates.

And the company is right to emphasise water saving as much as

possible. In February, Cape Town’s Executive Deputy Mayor Alderman Ian Neilson confirmed that the city’s ‘day zero’ – where the taps run dry – had been moved out to July following big

efforts to reduce consumption.

“We cannot afford to slow down when the estimated Day Zero date moves out, simply because we cannot accurately predict the volume of

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INDUSTRY FOCUS: RETAIL

// WE WANT OUR CUSTOMERS TO EXPERIENCE A ‘WOW’ SHOPPING EXPERIENCE BOTH ON THE SALES FLOOR AND ONLINE // rainfall still to come or when it will come. Last year, we had abnormally low winter rainfall, and we cannot assume that this year will be any different,” said the Deputy Mayor.

“The only way we can stretch our water supplies is to adhere to the 50 litres per person per day water allocation. Our water saving efforts across the metro have thus far been our greatest defence against Day Zero.

Now is definitely not the time to ease up,” he added.

Unfortunately, the water shortage is not unique to the Western Cape and efforts to save are ongoing around

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South Africa. In Ekurhuleni, female church leaders gathered at the end of February at the Women in Faith Based Organisation Water Conservation Day where Member of the Mayoral Committee (MMC) for Energy, Water and Sanitation in Ekurhuleni, Tiisetso Nketle encouraging the church leaders to preach the benefits of water conservation to congregants.

The Department of Water and Sanitation has launched a #SaveWater Ambassador Programme which has seen Miss Earth South Africa, Operation SA, Tsogo Sun, South African Rugby Union, and the Muslim Judicial

Council all back the programme. The CSIR displayed water conservation technology at a consumer forum last month, and even President Ramaphosa has weighed in on the situation, saying at a speech delivered in February: “If there was ever a time when we should be working together as a people, this water crisis is the time when we should all join hands and make sure that we address this water challenge that we now face.”

And in Brights Hardware’s home, the Western Cape, strict water restrictions remain in place and the company continues to do what it can to encourage water saving. Through its social media channels, the business encourages people to share their water saving techniques, and through its stores Brights will always deliver water related products at reasonable prices.

BRIGHTS HARDWARE

HELPING LADIES DIY A key market segment and business development strategy for Brights has been the female DIY customer. The company has long been interested in bringing more women into its stores, and encouraging women to buy from its extensive choice of products.

Having a range of more than 40,000 tools, building materials and hardware needs, Brights has the product for every requirement.

To aid the development of female

shopping in its stores, Brights has launched a ‘Sparkle Reward Card’. Much the same as its cash discount card, Brights hopes the new idea will attract women into the industry through a discount and points scheme.

“With this card, Brights Hardware is including the same benefits of our existing Cash Discount Card, but adding unique experiences and benefits that will cater more to the female DIY enthusiast,” commented Luis.

“We are also changing our stores,

making them cleaner, neater, easier and quicker to shop in; this is mixed with engaging and knowledgeable staff who don’t shy away from their customers.

We want our customers to experience a ‘wow’ shopping experience both on the sales floor and online. Visit our stores and experience the difference in care you receive.”

WWW.BRIGHTS.CO.ZA

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DIS-CHEM PHARMACIES

Healthy Performance

for Dis-Chem PRODUCTION: Manelesi Dumasi

Driven by award-winning entrepreneurs, operating a wide reaching store network, and successfully growing year-on-year, Dis-Chem is a force to be reckoned with in Southern Africa’s healthcare retail industry. Following its listing in 2016, the company continues to achieve fantastic results.

//

The current picture at South Africa’s Dis-Chem, a leading pharmaceutical chain, is one of health. Formed in 1978 by pharmacists Ivan and Lynette Saltzman, the company has grown from a single store in Johannesburg to become a JSElisted, Southern African market leading organisation, with large exposure to a growing industry sector.

In May, the company will present

its full 2018 financial year results, and it is expected to display much positivity, following on from success in 2017.

For the financial year ending 28 February 2017, Dis-Chem reported that turnover increased by 14.7% to R17.3 billion and operating profit was up 24.3% to R1.1 billion. For the six months ending 31 August 2017, the good news continued with turnover up 13.3% and operating profit up 21.4%. A trading

update for the 22 weeks ending 02 February 2018 confirmed that success looks set to continue this year, with group turnover up 13.1% to R8.5 billion.

Today, the business is home to more than 13,000 employees and operates more than 100 stores, with plans to open more in the future.

“We are comfortable that the industry fundamentals and the Dis-Chem brand positioning, the focus of which

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INDUSTRY FOCUS: RETAIL

remains on an unrivalled pharmacy offering, dedicated front shop service and a differentiated stock range, continues to allow us to trade well through challenging market conditions,” said CEO Ivan Saltzman.

“Supported by our store roll out strategy, we remain focussed on ensuring we continue to grow our market shares in the categories that we serve.”

The pharmacy-retail industry has seen something of a change in the past decade, with the emergence of superchains like Clicks and instore pharmacies like MediRite (at Shoprite and Checkers), Spar and Pick n Pay taking control of significant market share. Their ability to offer fitness, health and beauty, and related products alongside medical and prescription items has ensured success.

In Europe and the USA, big name chains dominate the pharmacy space (names

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like CVS, Walgreens, Boots, Rossmann) and South Africa is heading the same way with the industry set to reach $4 billion in value by 2020. Product range and digital presence is key as shoppers look for the convenience and speed of completing their purchasing in one store or through one website visit.

Dis-Chem’s growth story started six years after the opening of its first store when, in 1984, its opened a second branch at the Randburg Mall. Following the opening of this store, the company began introducing non-pharmaceutical products to entice more customers before expanding further with another new location. Through the early 90s, the company further extended its reach before, in 97, releasing its own brand of pharmaceutical products.

The 2000s saw a ramp up in activity with the launch of Dis-Chem’s loyalty

scheme in 2003 and the opening of the first Western Cape store in Cape Town in 2004. Four years later, Dis-Chem developed an acquisitive strategy, taking majority stakes in independent pharmacies and installing the Dis-Chem brand. In 2013, the company’s online offering was launched, and a major growth strategy was achieved as DisChem entered the wholesale market by acquiring a controlling stake in CJ Distribution and non-controlling stakes in Pharmacy Development Academy and Evening Star. Accolades came in the following year when the business was named as best pharmacy brand in the country by Reader’s Digest South Africa before expanding outside of SA into Namibia. In April 2016, Dis-Chem reached a centenary of store openings before listing on the JSE’s main board in November as the second largest IPO on the exchange.

Today, the focus remains on new store openings and the further acquisition of market share. Post listing in 2016, Ivan Saltzman said the company hoped to double in size in the subsequent five-year period following a doubling in size since 2010. Last year, the company said it would double its store base to 200 in the next five to eight years and plans to open 21 new stores (covering 26,900 m2 of additional space) in the 2018 financial year.

“This new space, together with maturing space within the existing store footprint, is expected to drive strong retail and comparable store growth in the years ahead, both of which are supported by the resilient health and beauty markets that we operate in,” Saltzman said.

In May 2017, Financial Director Rui Morais said that company market share was on an upward trajectory.

The dispensary business, which made up more than a third of total revenue, increased market share from 19.6% to 21.4%. Personal care and beauty improved market share from 12.4% to 15%. The biggest gain by Dis-Chem was in the healthcare and nutrition niche,

DIS-CHEM PHARMACIES

where market share was estimated to have grown from 38% to 43%.

These levels of exceptional growth are boosting the company forwards and fuelling the appetite for further expansion. Saltzman has indicated that 20 new stores will open in 2019 and the company is on track to achieve its 200 stores by 2022-23 target.

In August, Saltzman said that the company’s strong performance was down to its growing footprint and effective financial management. “The strong performance is principally due to a maturing store base, good margin management,” he commented.

He also paid tribute to Dis-Chem’s growing employee base, which he described as ‘qualified and motivated’.

“As a family owned and managed business for decades, we have nurtured a family and service orientated internal culture that engenders a real sense of

belonging throughout our workforce,” he said. “As a result, staff turnover in DisChem is exceptionally low.

“Although Dis-Chem is now a public company, we are determined to maintain our internal culture of respect, professionalism and belonging. That attitude is intrinsic to Dis-Chem’s future prospects.”

In December, Ivan and Lynette Saltzman were honoured at an awards ceremony in Sandton as the 2017 Entrepreneurs of the Year. The 2017 All Africa Business Leaders Awards hosted

by ABM Productions, in partnership with CNBC Africa, has been celebrating the success of African businesses for the past seven years. Ivan Saltzman said: “The business will grow through new space that we are opening but we have to keep our eye on the ball and still pay as much attention to our old stores and we give to the new stores.”

It is the ‘pharmacy first’ mantra, installed by the founders, that is helping to drive the reputation of Dis-Chem. Its ongoing store roll-out means that its products are available in more locations than ever before, its employees have more opportunities to interact with the customer base, and its successful distribution operation backs the whole process.

Now a powerful organisation with significant market share, Dis-Chem’s story is one of success. It’s digital service, loyalty programme, and fantastic store network continue to ensure the company remains true to its reputation as ‘pharmacists that care’.

WWW.DISCHEM.CO.ZA

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MIP HOLDINGS

Perfect Partner to Avoid the App Gap PRODUCTION: David Napier

As more businesses make the inevitable jump, taking services online or fully digital, now is the time to find a partner that can deliver software and IT services for the next generation of demanding consumers. MIP Holdings is one of Africa’s leading specialists when it comes to apps, software and digital tech and is waiting to find you a solution.

//

Turn back the clock, even just a few years, and you’ll find that the way we enquire about and purchase financial services has changed dramatically – this is no surprise. With technological advances and people’s demand for instantaneous service, the pace of change has been swift. Go back one decade and people were walking into banks and insurance branches and talking with salespeople about products. Today, everything is online, everything is done

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through an app, everything is quick and convenient. Again, this news is not new but for those that are serious about change accept that change is an ongoing process - something which needs constant attention. For example, tech has allowed business to reach further, higher and faster than ever before. A small insurance company can no offer its products and services to clients all over the world from a small office in the middle of nowhere.

It can reach different contact points

very quickly, and respond to customer needs at the touch of a button.

But, as an industry, the success of tech has seen it swamped with players who cannot deliver. This is why partnering with the right organisation is important.

MIP Holdings is a leading provider of affordable business/IT solutions to the financial services industry in emerging markets.

Headquartered in Bryanston, Johannesburg, MIP has been serving

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INDUSTRY FOCUS: TECHNOLOGY

// WE WANT TO BECOME A MAJOR PLAYER ON THE AFRICAN CONTINENT FROM AN INSURANCE PERSPECTIVE, THAT IS OUR BIG DRIVE // its customers with software and IT solutions for 29 years.

Today, MIP serves more than 13 million policy holders/participants on a daily basis. It is the world’s only software company delivering solutions across the financial service verticals.

Known for its success in the

insurance industry, designing and developing software that aids in the collection of employee contributions, MIP is entering a new phase in its existence as the demands of software, tech and apps from clients and customers become more challenging than ever before.

Traditionally a strong player

in its home market of South Africa, MIP is also targeting expansion on the African continent, where both technology and financial services are burgeoning industries.

“We want to become a major player on the African continent from an insurance perspective, that is our big drive,” says CEO, Richard Firth.

“The advent of the app has been one of the biggest changes in the industry over the years.

Communication has fundamentally changed the way we can operate.”

While MIP’s focus on its core

// Sanlam Group Risk recognised as the leader in Treating Customers Fairly The Batseta Council of Retirement Funds SA have awarded Sanlam Employee Benefits Group Risk the prestigious Imbasa Yegolide accolade for the Risk Benefit Underwriter of the Year. The criteria for this award were based fundamentally on the degree of application of the principles of Treating Customers Fairly (TCF) in practice.

Michele Jennings, CEO of Sanlam Employee Benefits Group Risk, stated that, “Our business model depends entirely on our ability to treat our clients fairly and we have implemented a number of innovations over the past few years to stay well ahead of our competitors”. These innovations include the establishment of a dedicated client servicing capability to act as a single point of entry for clients for any servicing related issues as well implementing leading edge quotes technology to improve turnaround times to unprecedented levels. The launch of the Severe Illness Impact range further demonstrates Sanlam’s commitment to meeting client needs. “This is the first and only of its kind product in South Africa – a severe illness product that addresses the impact that an illness has on the insured. We also provide the flexibility for clients to select whether they want to insure just Cancer or Cardiovascular diseases based on their budgetary constraints or to select the Comprehensive option, which covers more illnesses than any other product on the market.”

In a tough operating environment, Sanlam has attracted record volumes of new clients due to its hard won reputation of doing the right thing in the right way. The group risk market is characterised by complexity, choice and competitiveness. To succeed in this market takes courage to consistently do the right thing as claims and prices go through sharp cycles. “Our pricing model is built to deliver competitive and sustainable prices to clients so that large shocks are avoided. We often have to walk away from opportunities as we believe that unsustainable pricing is in the best long term interests of clients. We have a mature claims management capability to ensure that the right decision is made the first time. Our sterling reputation at the Ombudsman speaks volumes to our commitment to TCF as we have not had a single claim decision overturned by the Ombud for the past decade” added Jennings, “Further evidence that the Imbasa Yegolide award is in good hands”.

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Hard work.

Commitment.

Service delivery.

It all adds up to Imbasa Yegolide.

At Sanlam, we are committed to delivering service excellence to all of our clients.

Which is why Sanlam Employee Benefits is proud to have received the Risk Benefit Underwriter of the Year Award at the 2018 Imbasa Yegolide Awards, as voted for by the trustees and principal officers of retirement funds in South Africa.

Sanlam will continue to work diligently with our clients to maintain and improve on these high standards of service. It’s what makes us Wealthsmiths™.

Sanlam is a Licensed Financial Services Provider.

INDUSTRY FOCUS: TECHNOLOGY

products will remain, growth into exciting new spheres, especially in the app world, is providing many fresh opportunities.

Firth refers to this smart world as social infrastructure and states that developing products that easily meet the needs of business and customers in a user-friendly way is vital.

“I call it socialising the infrastructure,” he says. “This really translates to a new era when machines or systems will begin to

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socialise with consumers. For this to become a reality, the traditional business system needs an arsenal of functionality to truly bind the system, with a consumer sitting on the other end of a mobile app running on a multitude of devices.”

Development of this kind of software is now more important than ever as businesses turn to apps to easily and affordably communicate with mass numbers of consumers.

The alternative is falling into what

// EVERYONE IS LOOKING AT BECOMING A TECHNOLOGY BUSINESS BECAUSE IF YOU DON’T, YOU’LL LOSE OUT // Firth ters the “app gap”.

This is different to chat-bots or robo-advisors which have been used in the insurance and telecoms sectors, and which have gained popularity with developers after the growth of the home assistant such as Alexa, Google Home and Apple’s HomePod. The use of AI for tasks has been welcomed by the insurance industry. Global giant, Aviva and CEO Mark Wilson recently commented that the industry had long been living in the ‘stone age’ and the time for partnering with tech companies was now.

“The last few years have been very good. Obviously, technology is playing a bigger role in financial services, and that is true for all businesses – everyone is looking at becoming a technology business because if you don’t, you’ll lose out.

There’s a transition underway and everything is going digital,” agrees Firth.

“We are seeing a shift in the call centre model,” he adds. “We’ve built an automated FAQ input section into software and it’s becoming chat like. Traditionally, email and SMS has been popular but we’re finding in the large consumer space that email is no longer an effective communication method so we are building in digital stamps to recognise people and prevent fraud. We are also working on an important product called the Central Calendar which is like a Facebook timeline where the business has a timeline view of the

MIP HOLDINGS

consumer. Traditionally, we could post prompts in outlook to remind someone to renew a product; now we have centralised all the data and we can show it like a Facebook timeline which is imperative for customer service. We are also integrating the ‘invisible app’ where our app can integrate with other app services.

For example, if we want to show the consumer the weather forecast where they are – we don’t build a weather app, we integrate with another weather services and other risk services while all the while sharing information.”

At the recent Dubai World Insurance Congress, tech was in the spotlight with commentators and industry specialist suggesting that emerging technologies such as AI and blockchain are going to redefine business models of insurance firms in the digital world.

MIP sits perfectly positioned to partner with, not only South Africa’s very strong financial organisations,

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// THERE’S A TRANSITION UNDERWAY AND EVERYTHING IS GOING DIGITAL // but also with global players.

“Our key differentiator is that we operate in any of the insurance silos, from healthcare through to pension fund administration and life insurance. We have many touchpoints in the financial service chain. We don’t have any competitors who can compete in every one of those spaces,” says Firth.

“We compete with company’s in each individual space and what we’re finding is to achieve economies of scale and price competitiveness, it’s becoming imperative to have volume.

We have a R&D team of 35 people and they focus on where technology is going and how it can help us change the consumer interaction with insurers.”

“Today, we have more than 330 people and we look after approximately 13 million policy holders through pension, health, life and other sectors.”

There’s no doubt that FinTech (Financial Technologies) is here to stay and if you want to stay at the top of the market, commanding a market leading position, and a sustainable piece of the market, then partnering with the likes of MIP to help deliver your FinTech solutions is vital.

“FinTech like crowdfunding, mobile payments, and money transfer services is revolutionizing the way small businesses start up, accept

payments, and go global, and they are making it easier than ever to start and run a business,” explains Forbes big data expert contributor Bernard Marr. “Don’t assume that FinTech is simply a fad or buzzword: Accenture recently released a report which found that investment in FinTech around the world has increased dramatically from $930 million in 2008 to more than $12 billion by early 2015,” he adds.

Now is the time to make the move. Customers want it, businesses need it. The FinTech revolution is coming and you better be ready.

WWW.MIP.CO.ZA

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ZEISS SA

An Unbending

Focus on Innovation PRODUCTION: Timothy Reeder

Zeiss has been partnering with local distributors to bring its famous and world-renowned technology and solutions to its African customers for over 75 years. With its solutions, the company constantly advances the world of optics and helps shape technological progress, and recent results bear testimony to the strength of its work.

//

Now an organisation spanning the globe, Zeiss was founded in Jena, Germany in 1846 by optician Carl Zeiss, and has had representation for the past 75 years on the African continent via a wholly owned subsidiary based in South Africa. This arm of the business has been able to expand its reach during its lifetime to see it now serve customers across Angola, Kenya, Namibia and Zambia, to note just a few. The ZEISS Group is represented in more than 40 countries and has over 50 sales and service locations, more than 30 manufacturing sites and about 25 research and development centres throughout the world.

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As a whole, Zeiss has been contributing to technological progress for more than 160 years, and along the way has produced solutions for the semiconductor, automotive and mechanical engineering industries, biomedical research and medical technology, as well as eyeglass lenses, camera and cine lenses, binoculars and planetariums. Perhaps best known for its manufacture of optical systems, industrial measurements and medical devices, the coming together of founder Zeiss with Ernst Abbe and Otto Schott, who joined in 1866 and 1884 respectively, was the catalyst to the building of crucial foundations for modern optics and manufacturing.

Having opened an optics workshop in Jena, Germany in 1846, by the advent of 1847 Carl Zeiss was already making microscopes full-time. By 1861 the Zeiss workshop was considered to be among the best scientific-instrument makers in Germany, in 1866 seeing Zeiss sell its 1000th microscope, and at the outbreak of World War I Zeiss was the world’s most significant location of camera production. Currently the company comprises two chief sections: Carl Zeiss AG located in Oberkochen with important subsidiaries in Aalen, GÜttingen and Munich, and Carl Zeiss GmbH located in Jena.

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INDUSTRY FOCUS: TECHNOLOGY

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In the intervening years Zeiss has been responsible for many of the most crucial innovations in optical design and engineering. Ever since the enlisting of Dr Ernst Abbe early in the company’s lifetime, a renowned scientist recruited to elevate Zeiss beyond its many competitors, new and ground-breaking products have appeared in rapid succession to bring Zeiss to the forefront of optical technology. It is an ethic ingrained at the company’s heart, as Dr Michael Kaschke, President and CEO of ZEISS, summates: “Innovation is a way of life at Zeiss; you might even say it is in the company’s genes.

“Optical technologies are key technologies for our future, and their technological and scientific applications will increasingly appear in our daily lives.”

At Zeiss South Africa, the focus is placed on several of the key aspects of the Zeiss portfolio.

With its experience in lithography optics and other optical systems, Zeiss’s enables Semiconductor Manufacturing Technology allows customers the world to produce extremely powerful microchips.

Crucial to the technologies at the heart of the modern world, the semiconductor equipment developed and manufactured by Zeiss forms the basis of the microchips used in nearly every technical device today. A diverse product portfolio covers a wide range of key processes in microchip manufacturing, including optical lithography and mask optimisation.

Zeiss’s Spectroscopy Solutions are again found in numerous industries, be this agriculture, food, glass, solar or the chemical branch. From Ultraviolet (UV) to Near-infrared (NIR), among its principal applications are in colour management, where a spectrophotometer is used to take measurements in the visible region of the wavelength range. The use of white light interference is a proven excellent method for measuring layer

ZEISS SA

thickness, while NIR spectroscopy is a well-established technology for achieving accurate online moisture measurement.

Vision Care in the digital age is an ever more important concern as the influence of digital devices such as smartphones and tablet computers continues to grow, with a typical user looking at a digital display between 60 and 80 times a day. As a direct result, we are using our close-up vision more than we used to, and generally in a highly focused way. Zeiss’s progressive lenses offer smooth vision from near to far, and provide natural, comfortable vision, its 100 years of experience in the production of precision spectacle lenses creating four different types.

At its annual press conference for 2017, Zeiss was able to report the best results in its more than 170year history, with record revenue and earnings coming as a result of prolonged investments and the technical innovations for which

it is famed. Among the headline announcements were double-digit revenue growth to € 5.348 billion and earnings before interest and taxes (EBIT) increases to €770 million. The success came as a result of positive contribution from all segments of the company, while growth with cutting-edge extreme ultraviolet (EUV) technology was singled out for praise.

“All four segments – Research & Quality Technology, Medical Technology, Vision Care/Consumer Products and Semiconductor Manufacturing Technology – are either at or above their target returns and have made a positive contribution to the most successful fiscal year in the history of ZEISS,” commented Michael Kaschke. “This development was not and is not just a matter of course. Rather, it is the result of the tremendous efforts made by all employees and partners over a long period of time. Thanks

to investments in cutting-edge Innovation and Customer Centres, global partnerships and strategic expansions, we have focused entirely on the needs of our customers.

“Ultimately you only win if you also take responsibility and make bold decisions for the road ahead,” continued Kaschke. “In order to ensure success over the long term, we need to stand our ground in the face of ever stiffer competition. With our innovative products and solutions, we see transformations in technology and society such as digitalisation and demographic change as a significant growth opportunity.”

WWW.ZEISS.CO.ZA

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FERMEL

Global Recognition for SA Mining Manufacturer PRODUCTION: David Napier

The past five decades has seen Fermel grow into not only a South African industry leader but also an international player in the manufacture of mechanised underground mining machinery. Recent success in international competitions topped off a great 2017 for this South African success story.

//

For more than 50 years, Fermel has been a leading name in the manufacture and sale of underground mining machinery. This South African organisation sends products across

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the continent, and also exports to South America. Recognised for excellence in underground hardrock and flameproof mining products, Fermel’s range include personnel transfer vehicles, materials handling

vehicles, road building equipment, lifting and charging products and much more.

With mining sector confidence undergoing a revitalisation thanks to the election of Cyril Ramaphosa, and

INDUSTRY FOCUS: MINING

// AS A DEDICATED MINING VEHICLE, THE MAVERICK RANGE OF VEHICLES PROVIDES IMPROVED PAYLOAD, FATIGUE LIFE AND ANTICIPATED LOAD CYCLES, LARGELY OWING TO THE UTILIZATION OF ADVANCED HIGH-STRENGTH MATERIALS. FURTHERMORE, THE TOTAL COST OF OWNERSHIP IS REDUCED // his appointment of Gwede Mantashe as Mineral Resources Minister, the hope is that mining will once again act as the country’s backbone, and investment will flow.

This would be good news for Fermel, which supplies high-spec trackless machinery to miners across a range of disciplines – especially following a boost for the company’s reputation in 2017. This came in the form of a nomination for the prestigious Swedish Steel Prize, where Fermel was one of only four companies nominated from all over the world.

The company’s LDV (Light Duty Vehicles) are used throughout the mining industry, but it was Fermel’s Maverick range of trucks that captured the attention of the Swedish Steel Prize 2017 judges. Using high-strength steel, Fermel’s product targets an area of the industry which is now in more sharper focus than ever before – safety.

“Around mid-2014, we identified

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this opportunity on the basis that new mining legislation and tighter safety requirements were due in the nottoo-distant future,” said Corné Wehr, Product Design Manager at Fermel.

Of course, the company’s first move was to design and develop a drive train system that could move the heavy structure, as well as the heavy loads carried by the vehicle.

“There were some challenges along the way,” said Wehr. “With great effort we identified the correct axles and transmission for this application.

We then needed to find a way to design a vehicle that both looked appealing and was practical for the application. We also wanted to be able to manufacture the vehicle without spending money on special tooling, but apply conventional fabrication methods.”

Typically, LDV’s come in the form of standard pick-ups or commercial vehicles that have been adapted to

meet stringent safety requirements.

Often, the harsh conditions of a mine can result in the vehicles slowing or needing maintenance and, after significant Capex to acquire the product, ongoing Opex is not what businesses want to deal with. This is why Fermel developed the Maverick – strong enough to be operationally effective, and durable without the need for regular maintenance.

Importantly, the Maverick can be easily adapted to suit the different needs of different mines. The Wear Resistant Steel Hardox® with Brinell Hardness of 450 hbw and a typical yield strength of 1100 – 1300 megapascal (MPa) for the cab means that the Maverick can absorb heavy bumps and bruises. Strenx 700 steel was used for the chassis, meaning the vehicle can hold a payload of up to 2.5 tons. In total, around 90 of the Maverick is made from high-strength steel and wear resistant steel, and this results in improved efficiency and effectiveness, significantly reducing the total lifecycle cost for the end user.

Maxine Penn, Director of Sales and Marketing at Fermel summed up the unique offering: “As a dedicated mining vehicle, the Maverick range of vehicles provides improved payload, fatigue life and anticipated load cycles, largely owing to the utilization of advanced high-strength materials.

Furthermore, the total cost of ownership is reduced.”

Fermel attended the awards ceremony in Stockholm in May and celebrated its international recognition. Eventually, the 2017 Swedish Steel Prize went to Swedish firm Kiruna Wagon which produces a

INDUSTRY FOCUS: MINING

wagon called the Helix Dumper.

But the judges said of the South African runner up: “Fermel has developed a unique range of multi-purpose vehicles for safe transportation in mines. They meet the new more stringent safety legislation and are aimed to replace re-built standard vehicles currently used. Design optimisation of the complete vehicle, including the body, has given superior performance as to personal safety, higher payload, agility, damage resistance, reliability and lifetime. All benefits are achieved by extensive use of advanced highstrength structural and wear-resistant steels.” The company is proud of its achievement considering it initially stood against 102 other nominees from across the globe.

At Fermel, innovation and product development is an ongoing focus and the business achieves

this through delivering excellent workmanship every day. Fermel’s workforce understand the challenges that are faced by miners and are able to leverage the company’s expertise

alongside personal experience to deliver first-class sales and after sales service.

Away from the success achieved with the Maverick, the company has

FERMEL

also been lauded for its work with the NewGen Mini UV, a completely updated and revamped version of the previous Mini UV launched in 1999.

Its body has been upgraded to use steel rather than glass fibre, and other elements of improvement have been achieved to ensure effective operation. Fermel surmises: “ FOPS ROPS, enclosed cockpit, with a 30% increase in volumetric displacement to improve comfort and ease of ingress into and, disembarking from the vehicle, while noise exposure within the cabin has been reduced to < 85db. Our latest hydraulic circuit is embedded in a single manifold, resulting in a reduction of up 80% of the original hydraulic connections, while the cabin is now an oil-less enclosure, providing an additional safety feature.

“Improved ride comfort has been achieved with an upgrade to the

suspension, by adjusting its geometry.

The machine includes our latest MI controller backbone with features such as collision avoidance, automatic speed control, brake performance diagnostics, access control, electronic pre-start check listing and Wi-Fi connectivity for a modern platform suited to current requirements.”

This vehicle has already been called upon by Royal Bafokeng Platinum’s Styldrift Mine which will use the NewGen Mini UV for supervisory personnel and general transportation.

In August, Fermel also officially announced the launch of its new, highly inventive battery powered 18 man e-shuttle. The company labels this new vehicle as “the future of mechanised platforms in mining”.

Reducing environmental pollution, noise pollution and cost of ownership, the NewGen Mini can

travel for 30km on one charge, even on 10 degree inclines.

South Africa’s President Ramaphosa has reiterated his support for the mining and manufacturing industries. Indeed, it is these industries that have created jobs and wealth for the country and mining and manufacturing still employ hundreds of thousands of people so it is important that they are allowed to continue to shine.

Fermel is the perfect example of a business that operates successfully across these two sectors, ensuring that SA mining and manufacturing moves smoothly, efficiently and safely.

WWW.FERMEL.CO.ZA

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CARARA AGRO PROCESSING

Cherry Peppers

Keep on Giving

for Carara PRODUCTION: Karl Pietersen

Exchange rates and water crisis are the key topics at the font of the minds of South Africa’s agri-processing industry. As the country’s products continue to delight in export markets, it’s vital that the water shortage does not halt supply. No one knows this more than Grahamstown-based Carara Agro Processing.

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INDUSTRY FOCUS: AGRICULTURE

//

South Africa’s exports remain a critical element of the country’s GDP mix. It is among the top 40 biggest export economies in the world and its chief exports include metals and minerals (platinum, iron ore, ferroalloys etc.), coal, cars and associated products, and food stuffs (fruits, vegetables, oils, wine etc.).

South Africa’s key markets for export include China, USA, Germany, and neighbouring countries such as Botswana, Namibia and Zambia.

In 2016, South Africa, one of Africa’s largest economies, reported a trade deficit of $4.57 billion (exporting $69.1 billion and importing $73.7 billion according to the OEC), and fluctuations in the price of the Rand have caused concern for exporters.

Since 2012, politics and economic

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uncertainty have caused the Rand to swing violently against the Euro; in 2012 it was around 11.06, in 2014 it was around 14.37, in 2016, it was around 16.03 and today the rate sits at around 14.82 for one Euro. And with South Africa’s political landscape going through a further period of change, who knows what the future could hold.

One company who is well versed in this type of environment is Carara Agro Processing, exporter of pickled sweet cherry peppers and other products.

Back in mid-2016, Carara’s Managing Director, Mike Duxbury told Enterprise Africa that the company was excited about expanding its product range, growing into new markets, and building an even closer relationship with its large employee

base. But this was based on a relatively weak Rand.

“At this stage, the long-term trend for the Rand is weak and that is good for us… At the moment it’s favourable but things change very quickly,” he said.

A year on, in mid-2017, Duxbury said that the first six months of that year had been “absolutely unbelievable” and that the business was struggling to keep up with demand. This was at a time when exchange rates had shifted significantly. “All of our pricing is in offshore currency and we’re now getting less for our products than we were last year despite high inflation here,” he said.

And now, with further pressure on pricing, the only thing that the company can do is focus on delivering

CARARA AGRO PROCESSING

quality to ensure it can secure contracts in the future.

“The exchange rate is totally out of our control but it has such a big influence on our business. All of our production costs are increasing but we are getting less of a return. As an exporter, there’s not much we can do apart from ride the wave and satisfy our customers in terms of quality,” Duxbury admitted.

BUILT ON QUALITY Fortunately, Carara Agro Processing has been delivering quality for almost 15 years. The business was founded by a group of ex-Zimbabwean farmers who moved south to avoid the political turmoil in their homeland.

Setting up a modern, state-of-the-art processing facility in the small but appealing city of Grahamstown in the

Eastern Cape, the group quickly began building relationships with local farmers for the supply of peppers, patty pans and jalapeños.

After establishing markets in key export destinations, mainly Germany and the Netherlands, Carara quickly became South Africa’s leading exporter in its chosen market sectors and the factory went from strength to strength, creating thousands of jobs and supporting the local community. Following a period of sustained growth, Carara opened a second processing facility, the Natal Pepper Company, in KZN (Carara is a 50% shareholder). Carara’s pickled products are now exported all over the world, and quality and speed of delivery are primary concerns for the company’s management.

The positive start to 2017

demonstrates this. A slowdown in local production thanks to drought and problems in supply from Peru meant that customers looked to Carara to fill the space left by competitors, and Duxbury was only too keen to oblige. “We are still producing around 2400 tons but we are planning for a 20-30% increase in 2018. We’re upgrading our canning line and numerous other things in order to increase capacity so that we can meet demand. We’re investing in machinery and in processing capacity so times are exciting,” he said.

The company is WFSO:FCA Level 1A (ISO 22000 PLUS ISO/TS 22002-1) registered and remains committed to community upliftment, investing heavily in projects that encourage progress with education, food and farming initiatives.

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INDUSTRY FOCUS: AGRICULTURE

// WE HAVEN’T GONE INTO THE MAJOR RETAIL CHAINS AND WE FEEL THERE’S AN OPPORTUNITY TO DELIVER DIRECTLY TO PEOPLE’S DOORSTEP AT A LOWER PRICE THAN YOU COULD GET IN THE RETAIL STORES // In order to build a new arm for the business, Duxbury has recently been investigating opening up the local market, where the company hardly operates at all, by developing an online shopping experience.

Through a seamless and easy to navigate system, customers from South Africa can access the Carara Agro store at www.shop.carara. co.za and purchase their favourite products. The company’s gold medal winning chutney product (International Taste and Quality Institute in Brussels Gold Medal 2016) is available for R40, a jar of marinated

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artichokes can be purchased for R48, a jar of cherry peppers sells for R36, sweetheart peppers R35, and many other products for similar prices.

You can also find fantastic recipes that incorporate Carara products. A handful of specialist retailers are also now stocking Carara products and while Duxbury admits that the project is not off the ground yet, it remains an exciting prospect. “We haven’t gone into the major retail chains and we feel there’s an opportunity to deliver directly to people’s doorstep at a lower price than you could get in the retail stores.”

SUSTAINABILITY Apart from fluctuations in the exchange rate, the other issue at the forefront of the mind for Carara’s management is the country’s ongoing water crisis. Publicised largely in regard to the problems in the city of Cape Town, the problem is a national one and the Eastern Cape is facing serious difficulties if the situation cannot be quickly reversed.

At the end of January, officials in the towns of Hankey and Patensie in the Kouga Municipality said that the dam supplying the area is at a ‘critical level’ and the process of sinking

CARARA AGRO PROCESSING

boreholes is being hampered by the rough terrain in the region. With no rain, the dam will empty and the crops will fail, resulting in large job losses in the agri-sector.

These towns sit just 200km west from Grahamstown and if the drought is exacerbated in anyway, Carara’s farming partners could be affected.

“We’ve developed a really strong grower-factory relationship without which we wouldn’t succeed. We know that without produce, we are not a business and we need quality fruits to provide the kind of quality our clients want,” Duxbury said.

In peak season, across its entire operation, Carara Agro Processing employs approximately 1000 people (6000 seasonal farming jobs) and in regions where the agri-sector is almost the only employer, a

slowdown in production is extremely counterproductive for all involved.

As the country looks to drive exports, the impending ‘Day Zero’ (when the taps run dry) must be avoided to ensure jobs are secured and products are readily available.

In March 2017, South Africa looked to Qatar as a potential new export partner for food products and in February this year, South Africa remained the biggest supplier of goods to Kenya, highlighting the opportunities that are available.

Agro-processing is a hugely important sector for the country, contributing large amounts of total GDP, supporting thousands of jobs, and contributing to the country’s trade deficit. Carara is a premier example of a successful agroprocessing business that should be

viewed as an industry leader and an example to follow. As long as the water crisis can be managed successfully and exports continue to flow, there is no reason why Carara can’t grow further and take a bigger chunk of its chosen markets.

“Carara would like to remain recognised internationally as a quality organisation, specialised in cherry peppers and other pickled and pasteurized products,” and to date, the company has achieved this.

WWW.CARARA.CO.ZA

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EXHIBITION CALENDAR

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

BAUMA AFRICA Expo Centre Nasrec, Johannesburg MAR 13 – 16 DECOREX DURBAN Durban ICC MAR 21 – 23 ENERGY EFFICIENCY WORLD AFRICA Sandton Convention Centre MAR 27 - 28 RAND SHOW Expo Centre Nasrec, Johannesburg MAR 30 – APR 04 MEDHEALTH KENYA The Sarit Centre, Nairobi MAR 02 – 04

ENERGY EFFICIENCY WORLD AFRICA MAR 16 | JOHANNESBURG Energy Efficiency World Africa , featuring The Lighting Show Africa, is the leading marketplace and ideas exchange platform for the energy efficiency market as well as for related industries – all hungry for innovative and efficient solutions. Part of the 21st annual Power & Electricity World Africa show (Africa’s longest running and largest power and electricity show), Energy Efficiency World Africa is Africa’s premier energy efficiency and lighting show.

RAND SHOW 2018 MAR 30 | JOHANNESBURG The Rand Show’s audience is a wideranging one. No other marketing platform in South Africa provides opportunity to reach as large an audience (over 200 000 visitors annually) over such a short timespan at one venue.

Reach all of your target markets at once: women, men, young, old, and all cultural groups.

The single unifying factor is that 72% of the audience is made up of families with children and that 93% of visitors in 2017 indicated they will be returning in 2018.

7TH ANNUAL BUY LOCAL SUMMIT & EXPO MAR 15 | JOHANNESBURG The Proudly South African Buy Local Summit & Expo is a place for all stakeholders in the procurement value chain to unpack what it means to be a buy local champion going beyond economic benefits and job creation. Government legislation has elevated some industries to a preferred sector under the terms of the Preferential Procurement Policy Framework Act (PPPFA) and companies need to understand how to maximise this home team advantage.

With the theme Local Procurement: Policy or Preference, visitors to the Summit can find out how to become part of the Buy Local movement and leverage Proudly SA status.

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GTR AFRICA TRADE FINANCE WEEK Cape Town International Convention Centre MAR 01 - 02 DHL ECOMMERCE AFRICA CONFEX Cape Town International Convention Centre MAR 14 - 15 7TH ANNUAL BUY LOCAL SUMMIT & EXPO Sandton Convention Centre MAR 15

THE WORLD’S ONLY SOFTWARE COMPANY DELIVERING SOLUTIONS ACROSS THE FINANCIAL SERVICE VERTICALS

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LEADING PROVIDER OF AFFORDABLE BUSINESS/IT SOLUTIONS TO THE FINANCIAL SERVICES INDUSTRY

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sales@mip.co.za | 0861 MIP MIP | 0861 647 647 | International +27 10 005 3700

MAXAM is the sole manufacturer of the PERMITTED EXPLOSIVES and PERMITTED DETONATORS

maxam.net +27 11 831 1300 marketing.za@maxam.net