Enterprise Africa December 2018

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

December 2018

www.enterprise-africa.net

Gateway of Tomorrow Back on a Roll ALSO IN THIS ISSUE:

Devmark Property Group / Metacom / The Gondwana Collection / SKA Project

EDITOR’S LETTER EDITOR Joe Forshaw  joe@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks  sam@enterprise-africa.co.za SENIOR PROJECT MANAGER Tommy Atkinson  tommy@enterprise-africa.co.za PROJECT MANAGER Shannon James  shannon@enterprise-africa.co.za PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Sam Applegate  sama@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 CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB Administration & Finance +44 (0)20 7193 0419 Advertising & Feature Sales +44 (0)20 8123 7859

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As many businesses enter a slower period over Christmas, now is the perfect time to pick up Enterprise Africa which has a large selection of features for its readers across the continent. We have learned a lot about the way technology is playing an increasingly important role in business, and how companies in Africa are at the forefront of development.

Take Metacom for example – this Cape Town-based business is a world leader in the design, development and production of routers and connectivity solutions. All of the ideas and technologies that comes out of this South African business are developed in-house for customers all over the world. CEO and founder, Réan van Niekerk tells us that he wants to help his retail clients with the development of the ‘Store of the Future’ – a totally connected outlet, tailored to the needs of a customer.

Then there’s FlowCentric Technologies, a BPM software company that is building its global presence with offices in the UK, India and Australia – all from its base in Pretoria.

Our lead feature comes from Dube TradePort and CEO Hamish Erskine who explains that the project is one of the most ambitious on the continent and will help to drive economic activity in KZN for the next 50 years. “If KZN was its own country, it would be the 11th largest on the continent, bigger than countries like Ghana,” he says, speaking of the importance of a modern, highly-accessible and well-planned logistics hub.

We also hear from Devmark, where CEO Hein Ehlers has been recognised personally for his leadership attributes and contribution to the industry, and the company is also busy rolling out a range of new property developments, mainly in the Western Cape, marketing them as ‘best in class’.

In Namibia, hospitality industry-leader Gondwana Collection talk to us about the opening of new hotels in the country’s most attractive tourist spots as Namibia’s global attraction grows.

And, along with several other top interviews, we hear from Jacky Goliath at De Fynne Nursery about the progress her agricultural firm has made, growing from nothing to become a business recognised for the highest quality. “I believe people choose to work with us because of our quality and not just because we are a black company and you need us for your scorecard,” she says.

Read on to catch up on progress with the SKA Project in SA, the expansion of the Motus business Bid4Cars, the growth of the Western Cape’s leading hardware retailer – Brights, and foundry company Besaans – which is bringing manufacturing back to SA from the Far East.

Make sure you take some time to recuperate over Christmas as 2019 is set to be an extremely busy year for everyone. Get online and tells us about your company’s plans for the New Year: @EnterpriseAfri1

Editorial & Design +44 (0)20 7193 2735 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. 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.

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 20 8123 7859  joe@enterprise-africa.co.za www.enterprise-africa.net

© CMB Media Group 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

146/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

9/DUBE TRADEPORT Gateway of Tomorrow Back on a Roll Underpinned by its unique location, Dube TradePort is a priority project for KwaZulu-Natal and forms part of South Africa’s National Infrastructure Plan, and a major economic catalyst for the region.

CEO Hamish Erskine speaks to Enterprise Africa about this dynamic emerging Gateway to the Continent.

9/ 4 / www.enterprise-africa.net

CONTENTS

INDUSTRY FOCUS: INFRASTRUCTURE

INDUSTRY FOCUS: FINANCE

9/DUBE TRADEPORT Gateway of Tomorrow Back on a Roll

87/CONSTANTIA INSURANCE Specialist Cover from the Experts in Care

15/AIRPORTS COMPANY SOUTH AFRICA Award-Winning ACSA Dominates SA Skies INDUSTRY FOCUS: TECHNOLOGY 22/SKA PROJECT Transformational Science Project Continues to Benefit SA 35/METACOM Metacom’s ‘Store of the Future’ Concept to Change Retail Forever 44/FLOWCENTRIC TECHNOLOGIES Keeping Processes Running Smoothly INDUSTRY FOCUS: AUTOMOTIVE 50/BID4CARS Tech Investments to be Rolled Out in 2019 56/LOMBARD TYRES 35 Years of Tireless Innovation INDUSTRY FOCUS: RETAIL 60/BRIGHTS HARDWARE Brights Succeeds With Strategic Five-Year Plan 71/DE FYNNE NURSERIES De Fynne Blossoms with Fynbos in Western Cape 77/EDCON Retail Warriors Ready for the Fight 83/SHOPRITE HOLDINGS Retail Kings Continue to Refine the Art

90/NFB FINANCIAL SERVICES Drawing On A Wealth of Knowledge INDUSTRY FOCUS: PROPERTY 95/DEVMARK PROPERTY GROUP Buoyant Devmark Celebrates Flurry of International Awards 104/THE GONDWANA COLLECTION Sustainable & Natural Growth Drives Namibia’s Gondwana INDUSTRY FOCUS: MANUFACTURING 113/BESAANS Fresh Investment Heating Up Besaans 118/ROBERTSON & CAINE SA Business Sails Away With US & Caribbean Top Spot INDUSTRY FOCUS: SECURITY 124/G4S AFRICA Africa: The Land of Security Opportunities INDUSTRY FOCUS: WASTE 132/PIKITUP Waste Not, Want Not INDUSTRY FOCUS: MINING 137/EXXARO Mining King Spreads Its Wings INDUSTRY FOCUS: AGRICULTURE 141/BRITISH AMERICAN TOBACCO SA Smoking the Competition for Over A Century www.enterprise-africa.net / 5

(c) Bonnievale Wines

TWO SA WINERIES BLEND FOR QUALITY OFFERING After 15 months of negotiation, Bonnievale Wines group and Wandsbeck Wines are to join, building a wine business with assets in excess of R300m.

The new business will be known as Bonnievale Wine Cellar and will operate out of Robertson as one of the region’s biggest wine producers.

The merger provides 40,000 tonnes of cellar capacity under the new entity.

Wandsbeck Chair, Philbert Lourens said the company’s membership and tonnage had declined over the years and the expectation is that a larger company will reduce production costs while raising profitability.

Bonnievale Wines group Chair Anton Smuts said that changing production and marketing conditions have driven this merger strategy to encompass producer sustainability and profitability, ensure product supply and extension, and provide long-term market security and growth for the future.

CABINET APPROVES MPUMALANGA SEZ Cabinet has ratified Trade and Industry Minister Rob Davies’ decision to designate the Nkomazi Special Economic Zone (SEZ) in Mpumalanga and to grant a SEZ Licence to the Mpumalanga Economic Development and Tourism Department. The Nkomazi SEZ will be positioned as an “Agro-Processing Hub” using green energy.

“This forms part of the Maputo Development Corridor project, which is a major trade corridor which connects Gauteng, Limpopo and Mpumalanga with Maputo in Mozambique.

“It comprises, among other things, roads, ports and railways. It will also contribute towards accelerating growth, attract foreign and domestic direct investment, expand the manufacturing sector and create employment in the region,” Cabinet said.

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Rob Davies - Dti

NEWS SNAPSHOT

TSHOKOLO NCHOCHO TO HEAD IDC Tshokolo Nchocho has been appointed as the new CEO of the Industrial Development Corporation (IDC), the country’s largest development finance institution.

Nchocho, who was appointed on a five-year contract, has both academic qualifications and extensive experience in development finance and banking.

He holds a BCom degree from the then University of the North (now University of Limpopo), a Master of Business Leadership from UNISA and a Master’s degree in Development Finance from the University of London as well as an Advanced Management Programme from the Harvard Business School.

His experience in development finance and banking stretches over a 28-year period, including a lengthy period at the Development Bank of Southern Africa and as the CEO of the Land Bank.

He replaces Geoffrey Qhena who has served for almost 20 years as an official of the IDC, of which 13 years were as CEO.

Tshokolo-Nchocho

TWIMS SET TO BOOST SA MANUFACTURING The launch of the newly established Toyota Wessels Institute for Manufacturing Studies (TWIMS) is set to boost South Africa’s manufacturing sector.

The R56 million TWIMS, launched

by Trade and Industry Minister Rob Davies, is set to develop world class capabilities and drive African industrialisation.

“We are looking forward to this institution contributing to the manufacturing sector as a whole.

We expressed our support on the programme because we can see a need for a much more strategic thinking about manufacturing institutions. We also urge the institution not to confine

itself to the auto sector, but be much more about manufacturing in general,” said Davies.

TWIMS was established in partnership with the University of Pretoria’s Gordon Institute of Business Science (GIBS) to deliver an MBA specialising in manufacturing.

TWIMS is also an independent, not for profit initiative, established through grant funding from the Toyota South Africa Education Trust.

While TWIMS carries the name of both Toyota and the Wessels family, which founded Toyota South Africa, the institution is a public body dedicated to the development of

manufacturing and manufacturingrelated executives, managers and government officials in Africa.

“The establishment of TWIMS, with the GIBS partnership and MBA programme, will be a pinnacle in education offerings and will form an integral component of career path development.

“We also need to equip our youth with the necessary skills to occupy these managerial roles in the future and provide the leadership required to keep manufacturing in South Africa competitive with global industries around the world,” said Toyota SA CEO, Andrew Kirby.

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Dube TradeZone - Aerial

DUBE TRADEPORT

Gateway of Tomorrow

Back on a Roll PRODUCTION: Colin Chinery

Underpinned by its unique location, Dube TradePort is a priority project for KwaZulu-Natal and forms part of South Africa’s National Infrastructure Plan, and a major economic catalyst for the region. CEO Hamish Erskine speaks to Enterprise Africa about this dynamic emerging Gateway to the Continent.

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After a near-two-year legal stalemate that paralysed work on KwaZulu-Natal’s showcase economic initiative, the Dube TradePort Special Economic Zone project is back in momentum.

30km north of Durban, Dube TradePort is a massive greenfield development, purpose-built to facilitate airport-related business with major benefits for one of South Africa’s most dynamic provinces.

Linked to two of Africa’s major seaports, major national roads, home to King Shaka International Airport, and positioned at the intersection of local and global intermodal transport routes, Dube TradePort is a key priority development project for both for KZN and South Africa’s National Infrastructure Plan.

TOP TEN Involving integrated aerotropolis and provincially-driven airlift strategies and considered as one of the country’s top ten investment opportunities, this Provincial Government-owned flagship is promoting foreign and local investment through warehousing‚ manufacturing‚ assembling and airrelated cargo distribution.

Designated a special economic zone (SEZ) in December 2016 - a major milestone in reaffirming Dube TradePort’s role as an engine for sustained economic growth for South Africa - Dube TradePort had secured R3.2bn in private sector investment before a legal hiatus put an 18-month brake on development.

This ended last May when a disgruntled tenderer who lost out on a R500m contract for the expansion of

Dube TradePort, was given a judicial reprimand for making “spurious allegations” against the Dube CEO Hamish Erskine, and the company that was given the contract.

Erskine’s reaction back then was understandably one of relief and exuberance. “This court case has set us back by 18-months. Now we intend to start work immediately.

“The second phase of the trade zone – 45 hectares of industrial land in a special economic zone – can now go ahead. It is a huge relief. The whole organisation has a skip in their step today.”

Fast forward, and Erskine says Phase 2 – Priority Number One for 2019 – “is the next major industrial expansion in the master- plan, and will bring an additional 50 hectares of new, serviced land on stream.”

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INDUSTRY FOCUS: INFRASTRUCTURE

R18 BILLION PRIVATE SECTOR INVESTMENT TradeZone 2 will serve as the foundation of Dube TradePort’s next phase of investment attraction. Covering 45 hectares of prime light industrial land, it is projected to create 260 construction and 4,265 permanent jobs and is expected to attract R18 billion in private sector investment over a five-year period said Erskine.

Zone 2’s locational challenges are formidable. With a work programme that will run for the next 15 months, the project will see the movement of some four million cubic meters of earth for the platforming of the site.

“When you try and build a 50-hectare platform on what was previously growing sugarcane, it’s an extremely large engineering project,” says Erskine, who took up his role in September 2016 after two years as acting CEO. “You have to essentially create 50 hectares of level land in an extremely unlevel environment, so there’s an enormous amount of work going on at the moment.”

Planned since the late ‘90s and implemented since the mid-2000s, the

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// WE HAVE ALWAYS ENJOYED SUPPORT CROSS ALL THREE TIERS OF GOVERNMENT, AS WELL AS ACROSS ALL PARTIES // project is seen by Erskine as a major economic catalyst for the region.

The cumulative employment opportunities created by Dube TradePort - when calculating the downstream and upstream value chain linkages – now totals 13,000 indirect jobs, added to the economy of KwaZulu-Natal.

“We are here largely as an economic development project. Our primary objective is investment and jobs and new sector development. This is really what we are all about.”

Samsung is one big name in the Phase One segment - now almost fully booked and operational. Understandably at this stage, Erskine is playing the Phase Two name game close to his chest.

POISED FOR EXPANSION “We have to keep names under wraps at the moment. But what we are finding is that existing clients, domestic and foreign, have taken an expansion

position, which is great.

“And with the new investment drive from the President, we are starting to see a lot more commitment towards expanded operation.

“Trade Zone 1 has very much proven to be something of a testing ground, with a lot of investment going into Phase 2 expansion, which is something we strongly encourage.

“And here, the sectors we are looking at are pharmaceuticals, healthcare and electronics. And these are investments we are hoping to announce in the next three to six months if not earlier.

“We believe over time, these and other industries will introduce new technologies and expertise to KZN, rapidly improving skills both within the operations and among suppliers in the local market, enabling innovation and improving the competitiveness of the province.”

DUBE TRADEPORT

// WHEN YOU TRY AND BUILD A 50-HECTARE PLATFORM ON WHAT WAS PREVIOUSLY GROWING SUGARCANE, IT’S AN EXTREMELY LARGE ENGINEERING PROJECT // Altogether, the Dube TradePort 50-year master-planned airfreight and passenger hub, consists of five business zones: Dube TradeZone, a prime, fullyserviced industrial precinct of 77

hectares and growing to 300 hectares, for electronics, pharmaceuticals and aerospace manufacturing, assembling, and distribution.

Dube Cargo Terminal, a state-ofthe-art cargo handling facility with digital tracking and secure cargo flow through on-site statutory bodies, which prides itself on a 0% cargo loss since inception in 2010.

Dube AgriZone, an advanced agricultural precinct with world-class facilities and technical support for propagating, growing, packing and distributing high-value perishables and horticultural products through an efficient supply chain.

Dube City, a 12-hectare premium business and hospitality precinct, three minutes from the passenger terminal, and Dube iConnect, a cutting-edge telecommunications platform and

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King Shaka International Airport is a key driver. Dube TradePort - named after John Langalibalele Dube, educator, clergyman, writer, newspaper editor, and founding president of the then South African Native National Congress, later the ANC - is Africa’s first purpose-built aerotropolis, with the airport centrepiece.

The freight-orientated Durban Aerotropolis coupled with its SEZ designation will quicken the pace of development at Dube TradePort and increase demand for greater levels of airlift out of Durban to domestic, regional and international markets.

STRATEGIC INFLUENCE This in turn, “augments efforts to grow our strategically influential location, together with two of Africa’s major seaports, to become a truly viable and

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INDUSTRY FOCUS: INFRASTRUCTURE

sustainable alternative gateway to South Africa, Africa and the world,” says Dube TradePort Corporation Chairperson Dr Zanele Bridgette Gasa.

Orchestrating the Dube TradePort industrial development zone project has been that critical but often elusive element in South African advancement; a unified all-party approach.

“A strong feature of our development has been the cross-party support. And this goes right back to the

CEO - Hamish Erskine

12 / www.enterprise-africa.net

mid-90s, and then into the early 2000s implementation period, beginning with the R8b re-location of the 7.5 million passenger Durban airport - a mega move – and on to the creation of the special economic zone designation and all that’s emerged since then.”

Erskine, a former administrative head of the National Council of Provinces Division in KwaZulu-Natal Provincial Legislature, is full of praise for the strength of inter-governmental support.

“We have always enjoyed support cross all three tiers of Government, as well as across all parties. We have all spoken consistently with the same goal in mind and have been very fortunate in this respect.”

As well as Dube TradePort, and nearby Richards Bay IDZ in KwaZuluNatal,, South Africa currently has six SEZs - Coega and East London IDZs in the Eastern Cape, OR Tambo IDZ in Gauteng, Saldanha Bay IDZ in the Western Cape,

DUBE TRADEPORT

Maluti-a-Phofung IDZ in the Free State, and Musina-Makhado SEZ in Limpopo.

The original industrial development zones (IDZs), which are evolving into SEZs, were based on the belief that SA’s manufacturing sector should be developed in the interior of the country, around the mines.

However, with the Government prioritising the growth of a more exportoriented economy, the IDZs were initially located close to a port.

SEZS: EVERYONE GAINS The Government has now broadened this approach, locating SEZs in all the provinces, and in areas where SA wants to stimulate industrial development by attracting businesses through a range of incentives.

Erskine does not fear competition from other SEZs and says each plays off its own specific set of advantages.

KwaZulu-Natal itself is emerging as an economic powerhouse for 21st century business in South Africa and is actively being positioned to become the Gateway to Africa and the world by 2030.

“We are the second largest Provincial economy in South Africa – with only Jo’burg-dominant Gauteng ahead. If KZN was a country, we would be the 11th largest economy in Africa, ahead of countries like Ghana for example, and the idea is to reinforce

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and grow off that base overtime.”

Meantime, Dube TradePort’s CEO pilots its advance with passion and a consuming sense of purpose and destiny.

“I’ve been very fortunate to work with brilliant teams over the years, and yes, I’m hugely excited.

“Every day you see the next opportunity, and you master plan over a 50-year period, taking that dream forward and making sure that we are equipped and ready to do so.

“It’s a big task, and there’s a lot that comes with it. But I think of the vision, what it can give, and how it can achieve so many wonderful things in the economy, for the country, and for society.

“That’s the exciting part. It’s been a 20-year journey, and one I’m rather blessed to be part of.”

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George Airport (c) ACSA

AIRPORTS COMPANY SOUTH AFRICA

Award-Winning ACSA

Dominates SA Skies PRODUCTION: Manelesi Dumasi

The aviation industry in Africa is set to unlock major economic opportunity and in South Africa, Airports Company SA is preparing its three major international hubs for consistent growth in numbers over the coming years. www.enterprise-africa.net / 15

INDUSTRY FOCUS: INFRASTRUCTURE

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Everyone knows that the opportunities for growth in South Africa are immense. So many unexplored opportunities remain, and the lure for local and international investors is strong – especially after the election of Cyril Ramaphosa to the country’s top job. His cleaning up of government and state-owned enterprises has gone a long way, helping South Africa to emerge from recession in 2018’s third quarter.

Traditionally, South Africa has been known for its mineral resources – buried deep underground – but major prospects also exist high above the surface, in the sky. Currently, Africa is the second largest continent by population but levels of domestic air travel are still low. Africa’s aviation industry represents just 2% of the global market. Growth potential is enormous - passenger traffic comes mainly from 10 African countries, that’s around 600 million. Just a 1% traffic

increase from the other half of the African population, there will be an increase of around six to seven million passengers every year. most commentators agree that the key to development in the African skies is inclusive government policies and robust state support.

In South Africa, one of the few trusted, well-run and profitable government businesses is Airports Company South Africa (ACSA), and its support for the aviation industry is, and has always been, resolute. This award-winning business exists to own and operate the nine principal South African airports, including the three main international gateways of O.R. Tambo, Cape Town and King Shaka International Airports.

With tourism one of the key focus industries for job creation and economic development, an effective on-the-ground infrastructure is necessary to facilitate an efficient operation in the skies.

// BEING NAMED AFRICA’S LEADING AIRPORT FOR THE SECOND YEAR IS EXTREMELY GRATIFYING AND REINFORCES THE HARD WORK AND COMMITMENT TO EXCELLENCE DEMONSTRATED AT THIS AIRPORT IN THE PAST 12 MONTHS // ACSA has been preparing for a strong future by investing heavily in its infrastructure, picking up a number of industry awards, and solidifying international relations.

AWARD-WINNING Through October and November, ACSA airports picked up a number of awards for various specialisms. Cape Town International was named, at the 25th World Travel Awards Africa & Indian Ocean Gala Ceremony, as ‘Africa’s Leading Airport’ for the second consecutive year.

Industry professionals from across the continent were on hand to witness the win for CTIA. The independently assessed awards are some of the most sought-after across the sector.

Deidre Davids, CTIA Senior Manager: Corporate Affairs said: “Cape Town International Airport is honoured to once again receive this very important accolade. Being named Africa’s Leading Airport for the second year is extremely gratifying and reinforces the hard work and commitment to excellence demonstrated at this airport in the past 12 months.”

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AWESOME AFRICA, NOW MORE ACCESSIBLE With our expanding network we provide seamless air freight solutions from South Africa to the world, via our global hub in Dubai. Business is booming across the African continent and Emirates SkyCargo, in association with our airline partnerships, connects African business with the rest of the world. From precious metals to the finest foods, we’ve got you covered.

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INDUSTRY FOCUS: INFRASTRUCTURE

Kimberley Airport (c) ACSA

CTIA is a vital entry point for South Africa, growing by 5.3% in passenger numbers in 2017.

There was also success in Durban for King Shaka International Airport which was given an award for Aviation Security. The inaugural Civil Aviation Industry Awards were introduced by the South African Civil Aviation Authority to recognise excellence across the industry.

KSIA’s Security Awareness Campaign was lauded for its impact on the airport community and the focus on ensuring safety and security.

Terence Delomoney, KSIA General Manager, said on receipt of the award at a ceremony in Johannesburg: “The recognition is a testament to the hard work and dedication from our staff members and volunteers and the partnership with our stakeholders in delivering on excellence.

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“We are committed to mirroring government’s ongoing agenda, as aviation is integral part and an economic driver to the growth and success of the aviation industry.”

KSIA Senior Security Manger, Claudia Daniels said: “We see our involvement to continuously improve our safety and security services as a fundamental collaboration with our airport community in order to advance our aviation industry.”

Displaying commitment to the country’s environmental targets, ACSA was given ISO certification and Level 1 carbon accreditation in November, further reinforcing the company’s position as an industry leader.

All nine airports under the company’s management have been certified as compliant with the mostrecognised international standard for

environmental management systems, ISO14001: 2015. Four airports received Level 1 carbon accreditation and three are building solar energy plants.

ACSA Chief Operating Officer, Fundi Sithebe, said: “The ISO certification is used worldwide for companies to map out a framework that they can follow in setting up an effective environmental management system.

“Our certification involved significant aspects for the environmental performance improvement of our nine airports such as fuel handling, waste disposal from both terminals, aeroplanes and engineering. We are very proud of this ISO certification as it affirms Airports Company South Africa’s commitment to operating our airports in an environmentally responsible and sustainable manner.”

AIRPORTS COMPANY SOUTH AFRICA

// THE ARRIVAL OF BRITISH AIRWAYS FOR THE DURBAN-TO-LONDON ROUTE WILL MAKE AN IMPORTANT CONTRIBUTION NOT ONLY TO GROWING PASSENGER NUMBERS BUT ALSO TO ENHANCING THE INTERNATIONAL STATUS OF KSIA AS A HUB FOR ECONOMIC GROWTH IN THE REGION // SKY-HIGH PARTNERSHIPS ACSA’s airports are responsible for 40 million arriving and departing passengers each year. but, with constant investment in tourism locally, and an appetite for visiting continent growing around the world, those figures look set to grow.

This was signified by a recent deal between British Airways and KSIA. The arrangement will see the flagship UK

airline travelling non-stop between Durban and London three times a week.

British Airways will fly the Boeing 787-8 Dreamliner all the way over the continent arriving in KwaZulu-Natal in just under 12 hours. The 100,000 people who make the trip each year are the targets for BA. Delomoney, who was present when the first London to Durban flight arrived, said: “King Shaka International

Airport is a strategic member of the air access partnership with the KZN Route Development Committee - DURBAN DIRECT which has enabled the province to significantly expand its tourism, business, and trade offers.

“The arrival of British Airways for the Durban-to-London route will make an important contribution not only to growing passenger numbers but also to enhancing the international status of KSIA as a hub for economic growth in the region. Our passenger numbers have risen steadily in recent years with an average increase of 8% a year over the last three years. KSIA handled some 5.6-million passengers during the 2017/2019 financial year, and we are forecasting that we will handle 5.9 million passengers by the end of the current financial year; we are confident that we will see more growth in the coming years.”

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INDUSTRY FOCUS: INFRASTRUCTURE

// WE ARE VERY PROUD OF THIS ISO CERTIFICATION AS IT AFFIRMS AIRPORTS COMPANY SOUTH AFRICA’S COMMITMENT TO OPERATING OUR AIRPORTS IN AN ENVIRONMENTALLY RESPONSIBLE AND SUSTAINABLE MANNER // Highlighting the impact of the deal on the local economy, and also praising the industry, Cllr Zanele Gumede, eThekwini Mayor said: “As the city of Durban, we wish to extend a warm welcome to British Airways, as they launch their inaugural flight connecting Durban directly to London.

This new route will enhance our global connectivity, further driving

Cape Town Airport

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growth in our tourism sector, by stimulating demand for our tourism product offering, and creating new opportunities to expand our tourism offerings for local operators.

“Furthermore, research has shown us that there is an emerging trend of travellers from the UK and the US markets, who tend to look for authentic travel experience when travelling

abroad, seeking out experiences that will allow them to interact with normal people leading their daily lives. This is a huge opportunity for aspiring entrepreneurs and tour operators, to provide this market with a growing inventory of new experiences, within and around our city, such as exploring our rich heritage trails, creating new experiences around township tours and city walks, in addition to letting visitors enjoy our warm beaches and cosmopolitan lifestyle in the city.”

Hamish Erskine, CEO of Dube TradePort Corporation – the SEZ company where the airport sits commented: “We see air connectivity is the catalyst to opening up new markets from both a passenger side and the movement of goods, which is critical to growing tourism and

AIRPORTS COMPANY SOUTH AFRICA

economic development in the region.

There has been a concerted effort to grow air services into Durban, an intergovernmental structure comprising the Airports Company South Africa, Department of Economic Development, Tourism & Environmental Affairs, Dube TradePort Corporation, Tourism KwaZulu-Natal, Trade and Investment KwaZulu-Natal, KwaZuluNatal Department of Transport and the Municipalities of eThekwini and Ilembe has been established to coordinate and promote international air services into King Shaka International Airport, under the umbrella of Durban Direct.”

HIGH FLYERS At the end of November, ACSA announced that Bongiwe Mbomvu would take the reins as Acting CEO following the completion of term by Bongani Maseko who was with the business for 18 years.

Mbomvu, who has been with ACSA since 2013, previously headed up the company’s Governance and Assurance department. A legal professional and attorney by training, she has held senior positions with various financial institutions and utilities. ACSA’s board has stated that the search for a permanent replacement for Maseko will continue.

Of course, the company remains extremely busy, catering for the needs of the biggest airports in the country, and completing work in Mozambique, Zambia, Ghana, Liberia and Brazil.

Financial reports for the year ending March 31 were released in September, showing revenue of R6.9 billion and EBITDA of R3 billion. The company said it was pleased with the results considering a 35.5% reduction in aeronautical charges.

“The company still maintains a very strong balance sheet as a result of conservative financial management practices. Interestbearing debt was reduced further

by R490-million during the year, reducing the company’s gearing ratio

to only 22%,” said ACSA. Commenting on movements through its airports, ACSA was positive: “Aircraft landing volumes grew by 1% for domestic flights and by 3% for international flights.

The Company reported a total of 20.2-million (2017: 19.3-million) departing passengers from the nine airports it owns and operates.

“Domestic passenger growth was 4% with good growth of 5% in international departing passengers.

This was largely due to the successes of the air access initiatives for Cape Town International Airport and King Shaka International Airport.”

Currently, ACSA is busy with upgrades and improvements at KSIA, spending R420 million on a taxiway extension and construction of two new remote aircraft stands. With

the new traffic from London as well as growth in traffic from regions in the Middle East and Indian Ocean Islands, it is vital that the airport is ready for expansion.

“King Shaka has had a compound annual growth of 8% in passengers over our last three financial years.

Capacity on the international side is coming under pressure‚ so we need additional stands to deal with both increased international traffic and any diverted flights from Joburg‚” said Delomoney

WWW.AIRPORTS.CO.ZA

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SKA PROJECT

Transformational Science Project

Continues to Benefit SA PRODUCTION: David Napier

Since our last look at the mega science project in South Africa’s Northern Cape, the SKA Project has advanced considerably. Now, the site near Carnarvon is home to the officially inaugurated MeerKAT instrument and will soon welcome full roll out of the SKA phase 1. It’s a very busy time for South Africa’s experts. Head of Communication and Stakeholder Relations, Lorenzo Raynard talks to Enterprise Africa about progress.

//

As the SKA project slowly develops, attention on the mega-project - centred in South Africa’s Karoo desert region - is brought into focus. Today, 25 years since the idea was first spawned, major progress has been realised. One the greatest scientific and technological achievements in history is now starting

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to take shape on South African soil.

A quick recap, the SKA project (Square Kilometre Array) is an international collaboration to build a radio telescope tens of times more sensitive and hundreds of times faster at mapping the sky than today’s best radio astronomy facilities. It will be the world’s most powerful radio telescope and will

help to answer fundamental questions about the origins of the universe and the potential for intelligent life in distant galaxies. When complete, the telescope will be made up of a collection of various types of antennas, called an array, to be spread over long distances.

To build such an instrument requires the brightest and foremost

(C) SKA South Africa 2

INDUSTRY FOCUS: TECHNOLOGY

minds of engineering, science and computing in the world. The project has already demanded significant innovation and the development of cutting-edge technology, including the design of the world’s fastest supercomputers to process data at rates far greater than the current global internet traffic.

Head of Communication and Stakeholder Relations for the SKA

project in South Africa is Lorenzo Raynard. He tells Enterprise Africa that international efforts are as advanced as human capability will allow.

“The fact that we are drawing on an international community and drawing on the collective insight and mastery of engineering, science and systems engineering to build this means that we cannot do any better. We have German designs, Chinese construction, South

// THE FACT THAT WE ARE DRAWING ON AN INTERNATIONAL COMMUNITY AND DRAWING ON THE COLLECTIVE INSIGHT AND MASTERY OF ENGINEERING, SCIENCE AND SYSTEMS ENGINEERING TO BUILD THIS MEANS THAT WE CANNOT DO ANY BETTER //

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African site, experience from across the globe, strong political will to make it happen, and there is very little that could stop the project from being realised.”

Milestones that have already been achieved include the inauguration of the KAT-7 array, a set of just seven 12m diameter dishes, in 2012. The 64 antenna MeetKAT telescope was inaugurated earlier this year and is now the largest and most sensitive radio telescope in the southern hemisphere.

PROUD AFRICAN PARTNERS In October, the nine African partner countries involved in the SKA project met at a summit in Cape Town to discuss progress. Ministers and senior officials from Botswana, Ghana, Kenya, Madagascar, Mozambique, Mauritius, Namibia, South Africa and Zambia came together, in a follow up to last year’s

SKA PROJECT

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meeting in Ghana, to prepare for the long road ahead.

“Everybody was extremely impressed with the infrastructure onsite, by the powerful scientific capability of MeerKAT, and with the plans for the future of MeerKAT and SKA,” says Raynard.

South Africa’s Minister of Science and Technology, Mmamoloko KubayiNgubane said that all partner countries agreed – progress has been impressive, especially when it comes to human capital development.

“We have rolled out two-dish interferometers at universities for teaching and training purposes in Botswana and Mozambique as pilots.

We have also rolled out about 10-20 computers loaded with software used in radio astronomy in Botswana and Mozambique as pilots.



+41.32.731.80.08

“We have been able to provide assistance to university astronomy programmes in partner countries through workshops and support to curriculum.

“Lastly, we have initiated an AVN Human Capacity Development Programme, which has supplemented the SKA Human Capacity Development Programme to increase the number of recipients and training opportunities from the SKA/AVN partner countries.

“So far, 136 recipients mainly from African SKA partner countries, have benefited from this initiative, many returning home to initiate radio astronomy programmes at their home universities,” she said.

The meeting also gave the African partner countries the chance to discuss longer term plans for the entire SKA project and what needs to be done in each region to keep the task on track.

 www.t4science.com

“What we are doing with the African partner countries is ensuring there is a readiness and preparedness for SKA phase 2,” says Raynard. “In order to do that, we are collaborating with the African partner countries to build an African Very Long Baseline Interferometry Network (AVN).

It’s similar to other interferometry networks across the globe. In order to create an African preparedness, we are meeting regularly, identifying sites for antennas, supporting progress with human capacity development, and making sure legislation - which we have pioneered in South Africa around the Astronomy Geographic Advantage Act – can be propagated across the entire African region.”

Continues on page 29

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Total commitment to integrity and excellence from South African engineering firm, Namaqua Engineering The biggest science project Africa has ever seen begins with the assembly of a tiny node of steel. Intricately bound together, it weighs about as much as a light dumbbell, and is the basis of the back-up structure to the most advanced dish antenna system the continent has ever seen.

These backup structures form the building blocks of the Square Kilometre Array (SKA), a battalion of enormous dish antennas being installed near Carnarvon in the Northern Cape Province of South Africa.

Amazingly, the team helping to build these monocles into the great unknown is part of a South African engineering firm, Namaqua Engineering, situated in the small town of Vredendal, some 430 kilometres from the Carnarvon SKA site.

Every day, founder Stokkies van Zyl and his team arrive at work at 6 am to change the world. Van Zyl has a touch of Elon Musk about him. He’s a man of slight build but indomitable character who wears his nickname like a badge of pride.

Stokkies means sticks in Afrikaans. But Van Zyl is made of iron.

“We at Namaqua Engineering want to recognised and be the preferred supplier to all our customers by delivering unequalled engineering services through my highly qualified staff members with total commitment to integrity and excellence,” explained Van Zyl. Namaqua Engineering focuses on: Mining: Mining engineering is the discipline of applied science and technology in the extraction of minerals from the earth.

Namaqua Engineering assesses the feasibility, safety and productivity of mine locations and plan, manage and optimise the extraction of surface and underground deposits. Their capable team are able to design, produce equipment transport or install conveyors, screens, crushers, feeders, sorters, pumps and general infrastructure.

Wine industry: Namaqua Engineering is on top of it when they need to design, produce equipment, transport or install any stainless-steel tanks, presses, pistons, feeders, conveyors or infrastructure for the wine industry.

Agriculture: Technology have been integrated with farming and has given agricultural engineering an advancement. The team at Namaqua Engineering design and build agricultural infrastructure such as constructions of sheds on farms and agriculture equipment. Agriculture engineers can also help to engineer and develop solutions for agricultural problems such as pollution control on farms.

Piping: The Namaqua Engineering team pride themselves on their designs and drawings that conceptualize and create innovative plans for piping components and systems, that includes the plant layout development. Namaqua Engineering’s HDPE Piping department construct, supply and install HDPE piping ranging from 16mm to 500mm in diameter. The team utilise extrusion and butt-welding equipment to produce piping to any specification and design.

Construction: Construction engineering relate to the planning, execution and control of construction operations for projects such as highways, buildings, dams, airports and utility lines. Namaqua Engineering ensures that work to be done is consistently planned and scheduled and select the most suitable construction methods and equipment for the specific project their team is working on. They will execute projects through timely mobilization of all drawings, layouts and materials on the job to prevent any delays.

Namaqua Engineering is able to design and build any building or structure.

Today Stokkies van Zyl and his team of 162 at Namaqua Engineering are ready for any challenge that comes their way.

Please contact and follow us: Website: http://namaqua-eng.co.za Email: stokkies@namaqua-eng.co.za Instagram: @namaquaengineering Facebook: @namaquaengineering Twitter: @NamaquaE

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SKA PROJECT

Continued from page 25 With all running seemingly without hitch, Raynard reminds that much hard work continues to go into the project and the one big hurdle which is still a cause of headaches for all involved is finance.

“Everybody is on board and happy right now,” he says. “The only hurdle we have faced is that the African Renaissance Fund has been withdrawn from the AVN project and that has left a funding deficit.

However, this is not hindering individual African partner country participation in the overall project.”

The African Renaissance Fund is administered by the Department of International Relations and Cooperation and was responsible for around R160 million investment in the AVN project.

Fortunately, the Newton Fund, established as a human development project between the UK and South Africa, continues to bear fruit.

“There has been funding which has been set aside as part of the Newton Fund which is called DARA – Development in Africa through Radio Astronomy – and we are now seeing a number of African students benefitting from that programme after being taught on the Kuntunse and HartRAO instruments in the areas of telescopy, interferometry, data science and astrophysics,” says Raynard.

He adds that getting the project to the healthy position it now occupies has been no easy feat, and demand for continued success does not slow.

“It has been hard work to meet these milestones. There has been political pressure placed upon us as it’s such a significant project – it’s one of the flagship science projects for South Africa – and the South African government has placed pressure on us

so that we adhere to the milestones and remain within budget. So far, we have done so - there have been a few rabbits pulled out of hats. After completing such a mammoth task there is obviously some exhaustion and relief, but very quickly we released that the work is only just starting and we now need to make sure the instrument is ready for long survey projects to start using the data. The scientists are keen to get their hands on the instrument and the data so that they can start processing. We have 11 large survey projects that are in queue to use the instrument and that takes up the next five years.”

RFI QUIET Currently, one of the primary areas of focus for the experts on site is ensuring the region is not disturbed

by RFI (Radio-Frequency Interference).

Any RFI disturbance may degrade the performance of the instrument or even stop it from functioning. The level of sensitivity that will be achieved by SKA project instrumentation means every caution must be taken to ensure nothing interferes with the spectrum.

Unfortunately, this is much easier said than done and has caused concern across South Africa’s domestic air industry which may be forced to reroute Jo’burg to Cape Town flights (one of the top 15 mist busy air routes in the world) to ensure no RFI. This will come at a cost to the industry with some reporting that the alternative route could cost airlines R2 million per year.

“There are different types of RFI,” details Raynard. “One is a consistent RFI, like you get coming from an electric fence. This can cast the instrument blind and no observations can be made as the frequency is operating in the same range. Second is intermittent RFI, like what comes from a commercial aircraft

or satellite travelling across the site.

This can be mitigated by software as it is a one-off interference, you can see it on the reading and assign it to a specific cause and remove it from the observation. Third is the RFI that would damage the instrument, such as opening a cell phone right next to the receivers. They are so sensitive that doing this would blow them.

“For aviation, if the commercial flight is high enough, which most are, we can mitigate it. But if it flies too low or close to the instrument, there is a risk of damage. The Astronomy Geographic Act which has been passed in parliament in SA protects the entire Northern Cape, accept for the municipalities of Sol Plaatje, so that radio astronomy can be conducted. We can call on the legislature to enforce against any interference with observations.”

He adds that engineers from the SKA project team have been developing alternative technologies that will help mitigate the RFI issues and benefit the region in more ways than just protecting the scientific instruments.

“For example, when we started looking at cell phone connectivity in the area, we provided satellite phones and broadband trunk radio telecoms that operate outside of the designated bandwidth.

“This has always been an under-resourced area in terms of communication because of its sparse population. Because of this, there has not really been any connectivity to support municipal or disaster management or emergency services.

The alterative communication that we have started putting in place in the area means that emergency services are now much better equipped to communicate effectively.”

// IT HAS BEEN HARD WORK TO MEET THESE MILESTONES. THERE HAS BEEN POLITICAL PRESSURE PLACED UPON US AS IT’S SUCH A SIGNIFICANT PROJECT – IT’S ONE OF THE FLAGSHIP SCIENCE PROJECTS FOR SOUTH AFRICA // www.enterprise-africa.net / 29

INDUSTRY FOCUS: TECHNOLOGY

Specifically with aviation, the SKA team wants more information and is looking to monitor the airways before committing to a route recommendation.

“We are looking at technology to record the amount of air traffic in the area. It’s a type of radar that doesn’t emit but only receives so not to interfere with the RFI of the instrument.

It can track aircraft and give us data to understand the full extent of the impact on the aviation industry so that we can follow up with the next set of alternative technologies to help us build that relationship.

“It would be senseless if you have a large science infrastructure investment of this nature which impedes on a huge economic stimulus such as air traffic between Johannesburg and Cape Town – it wouldn’t make sense for the country.

However, we do now have this project which is causing an impact and so we are having a meeting with ATNS at an aviation summit to present information about the project and the RFI issues,” says Raynard.

THE LAND ISSUE Since its initial inception in South Africa, the project has been met by mixed reactions. Everyone understands the

// WE ARE AT THE PHASE WHERE THE SECOND PROTOTYPE HAS BEEN BUILT, THE FIRST IN CHINA AND THE SECOND ON SITE, AND WE HAVE STARTED ENCOUNTERING CERTAIN CHALLENGES SO WE ARE SENDING THINGS BACK TO THE DRAWING BOARD // 30 / www.enterprise-africa.net

benefit of having a globally recognised science project located in South Africa, but for those in the Northern Cape, where the project is having the most tangible impact, there remains concerns from locals.

A 320,000 acre ‘quiet zone’ has to be in place around the instrument and this required the acquisition of 42 farms in the area. Residents thought that job losses could occur, and land could be mismanaged. But Raynard says the opposite will be true. To date, thousands of jobs have been created and $10 million has been spent with local suppliers and contractors.

“In the beginning, it wasn’t largely accepted and welcomed,” he says.

“Buying up the land has to be placed in context of the larger land issue in South Africa. There are many parties who are nervous about land restitution and when we went into that area we had to deal with a fear towards the process.

We did not expropriate land, we bought all the land at market prices. One of the arguments was that we would be removing agricultural land from the region, having a huge economic impact. The second argument was that we would have an environmental impact on the area by buying the land and building large infrastructure for a telescope. The thought was that the land would be damaged and the impact would be irreversible. The third

concern was from neighbouring farms, who were concerned that if we did not manage our land properly, there could be a surge in breeding of predators that could damage their livestock. We also faced many other issues including emotive issues, where farmers had owned land for generations and had family cemeteries on site.”

To overcome these concerns, many of which are still ongoing, a thorough strategic environmental management assessment was commissioned by the Department of Environmental Affairs. This covered not just the environmental impact but also the socio-economic impact in the region.

Mitigations are now being developed to help build on the successful agricultural businesses in the region and to create new enterprises that contribute to employment numbers.

“Economic impact is inevitable; you buy up land, there is an impact,” admits Raynard. “One of the interventions that we put in place to address that was to partner with the Williston Abattoir to set up a feedlot. Given the drought that we currently face, this allowed us to buy livestock from neighbouring farmers and bring the livestock to the level of slaughter so that it was not lost as it would be if it was left to normal grazing activity. It has been successful and has already allowed us to replace the economic impact we had in the area.

SKA PROJECT

“We are also looking at partnering with the Carnarvon Abattoir to consider how the waste product coming out of the slaughter of sheep can be used to build an enterprise development component for businesses in the community.

“In line with the strategic environmental management plan, we have started the heritage walkthrough in partnership with the San Council and SANParks, to learn how we can establish a nature reserve that can run parallel to the hosting of the observatory. This would allow the land to be used for other research purposes.

We are partnering with the South African Earth Observation Network (SAEON), who could use this space as a node for assessing long-term earth observations and look at variations and chance in areas such as the Karoo.”

These ideas are constantly evolving and are all designed to provide positive long-term impacts that provide economic development opportunities for the local area. “It’s a complex set of interventions to address a complex set of problems,” says Raynard.

PROTOTYPES Currently, on site in the Karoo - centrally positioned between Carnavon to the south east, Vanwyksvlei to the north east, Brandvlei to the north west, and Williston in the south west – the 64dish MeerKAT instrument has already generated some of the clearest images of the centre of the Milky Way galaxy, 25,000 lightyears away from Earth.

SKA phase 1 will see a further 133 antennas added to the existing array with the 64 MeerKAT dishes being

incorporated into the larger SKA project.

Now is an exciting time for SKA phase 1 as the prototype for the next set of dishes is nearing completion.

“Prototypes are the biggest part of an engineering project of this magnitude,” explains Raynard. “We are at the phase where the second prototype has been built, the first in China and the second on site, and we have started encountering certain challenges so we are sending things back to the drawing board. The benefit is that the prototypes are being built on an observatory so they have reference instruments to indicate the RFI and compliance to RFI requirements. From the perspective of creating parameters within which construction must happen, building on a current observatory is much more favourable for prototyping.”

When design prototyping is

The sky is not the limit.

Flexible, scalable and high-quality communication services that enable the growth of African economies. seacom.mu

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INDUSTRY FOCUS: TECHNOLOGY

// WE WILL BE BUILDING THE SKILL TO NOT ONLY PARTICIPATE IN TELESCOPY AND INTERFEROMETRY, BUT ALSO IN DATA SCIENCE AND THE DEVELOPMENT OF TECHNOLOGIES TO HANDLE LARGE VOLUMES OF DATA - THAT IS A MAJOR BENEFIT FOR SOUTH AFRICA // complete, production prototyping can begin before the final step - full-scale production. Current estimates suggest that full-scale production could start in 2021/22 but Raynard says that what is most important is getting the prototypes perfect before anyone talks about full-scale production. “When we hit full-scale production, we know we will be pretty much complete and that is exciting for the instrument,” he says.

The MeerKAT dishes are 13.5meters in diameter, located on baselines of up to 8km. The dishes are of a highly-efficient design with up to four cryogenic receiver systems operating in different bands

32 / www.enterprise-africa.net

of the radio spectrum. The prototype for South Africa’s SKA phase 1 antenna is different - an offset Gregorian dual reflector. The main and sub reflectors were made of Carbon Fibre Reinforced Polymers (CFRP), based on single piece panel and surface metallizing technology.

The main reflector size is 18m × 15m, the sub reflector size is 5m × 4.7m. These specs will likely change as progress is made and when the scientists refine ideas of what is required while the final prototype is built on site in South Africa.

For now, SKA phase 1 will take up the entire concentration of all involved in the project before any attention is given to

the longer-term venture of SKA phase 2.

“SKA phase 1 is large enough for us to put all of our focus into it,” says Raynard.

“When the IGO (Intergovernmental Organisation) is in place and we have more countries coming on board, bringing more money, SKA phase 2 will start to become more prominent and we will be able to put in place a much more realistic vision. What we know is that we understand the budgets for SKA phase 1 and everything is in place for us to complete that so there shouldn’t be any delays in phase 1.”

Asked if bringing more countries into the fold will be a lengthy operation,

SKA PROJECT

Raynard explains he hopes the establishment of the IGO will make it much easier and more attractive for others to get involved.

“Personally, I feel that the establishment of the IGO will make it more attractive for more countries to get involved as there will be a stronger international treaty in place.”

SA: THE REAL BENEFICIARY Apart from the transformational science that will be conducted by a fully complete SKA instrument, and the knowledge it will deliver for all of humanity, the benefits to the local economy, and the wider-South African economy, are great. Foremost is the science and astronomy industry development, and skills development within these sectors.

“We need the skills to drive the project forward,” highlights Raynard. “We are busy with the education programme

to make sure we are nurturing skills. We need to make sure that, at an international level, the SKA project can move along to a point where the IGO and the convention can be signed by each of the 12 partner countries. We also need to maintain our relationship with the local community by presenting to the municipalities and government so that they can see the benefit of having this project as their neighbour – that is an ongoing process.”

For any country on the fence, considering if partnership in the SKA project is a worthwhile investment, Farhad Yusef-Zadeh of Northwestern University in Evanston, Illinois – a global leader in the physical processes that take place in the nucleus of our galaxy – sums up the success of the MeerKAT instrument so far: “MeerKAT now provides an unsurpassed view of this unique region of our galaxy. It’s an exceptional achievement, congratulations to our South African

colleagues. They’ve built an instrument that will be the envy of astronomers everywhere and will be in great demand for years to come.”

Raynard says that the impact on South Africa is clear, and we are still only in the early stages of the project.

“The benefit to South Africa to participating in a project like this is massive. We will be building the skill to not only participate in telescopy and interferometry, but also in data science and the development of technologies to handle large volumes of data - that is a major benefit for South Africa,” he concludes.

WWW.SKA.AC.ZA

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Metacom CEO - RĂŠan van Niekerk

METACOM

Metacom’s ‘Store of the Future’

Concept to Change Retail Forever PRODUCTION: Manelesi Dumasi

When Metacom CEO, Réan van Niekerk began the process of starting the business from scratch in the early 00s, he could have never known that rate at which it would boom. 18 years later, he tells Enterprise Africa that his company is now “mission critical” in the operations of its clients and affects “the earnings ability of their operations.”

//

Imagine, walking down the high-street into your favourite store. As you approach, the automatic doors slide open, sensing your presence. As you enter, a connected display screen shows you promo material for a product you had been researching earlier in the day. The company’s tech detects your profile, remembering you from the last time you visited when you connected to the in-store Wi-Fi, happy that you recently liked a post on its Facebook page.

You’re thinking about where in the store you need to go as the Manager approaches. “Hello Mrs Smith. Happy Birthday for last week,” he says. “Thanks for coming back to the store – here’s a discount voucher for your next airtime purchase.” How did they know I was coming in for airtime? How did they know it was my birthday last week?

‘Oh well’, you contemplate – ‘it’s a nice gesture’. As you walk to the back of the store, another set of digital display screens play a video advert from one of your favourite brands. You then

receive a WhatsApp message from the store advising you of a daily offer on a product you might be interested in.

You head for the discounted item, pick it up, smile with the store assistant before making your purchase and then you leave. As you exit, you get an email receipt and a message of thanks directly to your phone.

The next store you walk into also knows you. It knows you have previously purchased a range of eco-friendly cleaning products so instructs the lighting to shift ever so slightly to a faint

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INDUSTRY FOCUS: TECHNOLOGY

shade of green - retailers often employ this colour to attract enviro-minded clients. In fact, this second store is a sister-brand to the first store and knows, thanks to your phone automatically connecting to the on-site public Wi-Fi router, that you are in the mood for buying. There’s a particular product you’re after, but you find it priced higher than you paid last time. Fortunately, while you queue, you receive an SMS from the store with a discount code. This time, as you prepare to leave, you receive a traditional printed receipt but on the reverse is a discount offer for next time you are shopping. The entire process across the two stores is completely personalised but takes just a few seconds to roll out. And these tech ideas are just the tip of the iceberg when you consider what is possible.

Who is responsible for the tech innovations in these stores, some of which are happening now and some which are being developed? Perhaps Apple,

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or Amazon, or maybe Facebook? Or is it Google? These are the type of companies with the power and knowhow to create something like this, right? Wrong. While they could conceivably come up with this type of concept, there’s a local player on the ground actually working on it. It’s all thanks to communication technology, and in South Africa, much of that technology is being rolled out by Metacom.

In September, Cape Town-based Metacom - specialists in providing high-quality managed Software Defined Wide Area Network (SD-WAN) services to customers across various industries – hosted the first in a series of workshops titled Metacom Insight.

The inaugural event was focused on retail and Metacom’s concept - the Store of the Future, where technology is seamlessly integrated to bring fantastic personalised service for shoppers, valuable insight for retailers, and enhancement of standards across the industry.

Metacom CEO, Réan van Niekerk tells Enterprise Africa that his company’s ideas could be world firsts.

“We are certainly putting a tremendous amount of investment into the concept of the Store of the Future,” he says.

“We believe in using technology to create a more personalised and customised experience for customers entering shops, and we are investing a substantial amount into R&D to develop these services in the future. It’s a whole host of solutions, some of which are in the market already and we are now developing our own variations, a few of which we believe are brand new.”

Metacom is an industry-leader in the development of IT hardware such as routers, and communication networks and infrastructure. By installing worldleading connectivity devices across a store network, the company could quite easily begin to paint a detailed picture of the customer for the retailer while

METACOM

bringing a customised service.

“The kinds of things we are talking about is identification through facial recognition or when a customer’s phone tries to connect to the Wi-Fi in the shop,” details van Niekerk. “We want them identified when they walk in and then tracking them in the store with heat mapping – which is already being done.

From there, we can then deduce buying patterns and interface directly with the service of the retailer to see the historic buying patterns of the individual.”

To date, Metacom has onboarded a number of southern Africa’s leading retailers including the Pep Group of Stores and Lewis Stores, to highlight the calibre of client who entrust their services.

“If someone walks into a store on a weekly basis and buys beer, every three months or so, the store manager can receive an alert that the customer has entered the shop and can then approach the customer with a gift voucher for some free beer to say thank

you for being a loyal client. We have so many ideas like this – it’s all about creating a personalised experience for the customer, similar to what you get when you buy online. It’s about taking online into the shop. Department stores have become so big that service has become impersonal and by using technology to seamlessly intertwine the entire experience – look, smell, feel – you can personalise the experience for a customer.”

He is critical of stores that have lost the personal touch, citing times when management, staff, customers and community all new each other by name.

By utilising technology to its maximum potential, van Niekerk believes this type of personalisation can be regained.

“If there are specials in the shop, maybe you could receive a WhatsApp or SMS as you enter, depending on what’s available, so that we ensure you get relevant content. If there are 20 specials, you can’t pump all 20 to a customer’s

phone as it’s just not relevant. If you can finetune and target an individual it will help to increase your revenue thanks to personalisation of the marketing efforts that are already in place.”

Currently, Metacom is working on an idea which could see store managers making more effective use of the communications tools available in branch.

“We must be the only company in the world that has interactive multimedia routers on our communications equipment which are controlled by a cell phone app,” says van Niekerk. “We have demonstrated that we can download training material to our routers in the evening. The next day, when the store manager closes the store, all the staff can gather and the manager can, through the app on their cell phone, play training material on all the screens in the store. Everything is handled by a Metacom router and the Metacom communications infrastructure.

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INDUSTRY FOCUS: TECHNOLOGY

“Something that was surprisingly easy for us to do, but something which our customers think is invaluable, is allowing managers to make announcements in the store over the PA system from a cell phone. We have developed an app where you can pre-record a message on your phone, listen back to it, re-record it, and when you’re happy, it will play throughout the store, through our router. It’s about taking technology and multimedia services and putting control into a store managers cell phone.”

Asked when we could realistically

see ideas like this become mainstream on the high-street, van Niekerk says 2019 will be a big year.

“The bulk of everything has been developed and some aspects have been rolled out, like multimedia services which are in operation at Pep stores,” he says. “Most of it will be implemented over the course of the next year. The apps are working, the screens are working, the music is working, the training material is working, the public Wi-Fi hotspots are working; the primary focus for now is on the identification of individuals and how we intelligently

interpret and act on this information.”

The collection of personal data has become a rather hot topic in recent months following many malpractice scandals where people’s personal information has been inadequately protected. Information about customers is now used as a currency in some circles, and its value is exactly why Metacom takes security so seriously. Protecting the interests of its clients, and in turn the interests of its client’s clients, is permanently fixed as a company top priority.

“All of our communication goes

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INDUSTRY FOCUS: TECHNOLOGY

over encrypted channels, all data is encrypted – the entire company structure is secure,” ensures van Niekerk.

“There isn’t a single strategy you can put in place, there are multiple layers of security and barriers that anyone would have to break. We take security incredibly seriously and there are a whole host of world-class measures in place to make sure data is safe.

“In 2004, we were the first company to roll our GPRS-based communication for EFT terminals on a national basis.

It was a huge success and even back then we were very conscious about protecting our customers networks and communication. It remains, and has always been, a very big issue for us.”

A CONNECTED HISTORY How can Metacom contribute to the roll out of a ‘store of the future’ concept?

Looking back over its history, this is a company with a truly impressive track record in the IT space. Van Niekerk

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himself has been in the industry for more than 35 years and has been behind a number of successful start-ups.

“Before starting Metacom, I was with a software company for four years and things were going very well – we were making money and things were great, but I got bored,” he remembers. “We specialised in software for the corporate market in SA but we didn’t have new product areas that we could all agree on. I like a challenge, I like to create new things, I like to be innovative. I resigned as a Director of that company in 2002 and started Metacom.”

He thought long and hard about how to be different and how to offer something which would be valuable to people but was not currently available in the market. “I’ve always had an interest in technology and IT, and I’ve always been involved in networking systems, software, electronic engineering and the entire ICT framework of services.”

He came up with an idea which involved using multiple connected blackboxes to create a large network that could span the country and talk to electronic devices no matter where they sit. Without realising it, Van Niekerk had come up with a precursor to what we know today as the Internet of Things (IoT).

“I remember clearly having a vision of these little black boxes everywhere in South Africa, and eventually around the world, that interconnect with each other through unique IP addresses to take care of useful tasks,” he recalls.

Today, Metacom has tens of thousands of routers installed across 22 countries around the world, 18 of which are in Africa. In South Africa, the company has routers in every town in the country, and thousands more covering the spaces between towns for Eskom to monitor and manage electricity distribution on the country.

Eskom, Pep Stores, Lewis Stores, Old Mutual, Capitec Bank, Spark ATM, and a

METACOM

host of other national and international clients trust Metacom to deliver. Van Niekerk remembers two key moments in the company’s history when he realised Metacom was no longer a start-up but a value-adding, established organisation.

“Firstly, we provided the first GPRS enabled SCADA (Supervisory control and data acquisition) communications infrastructure for companies, especially utilities, to manage their remote assets.

Around half of Eskom’s electricity distribution control systems runs through our networks. We were the first company in South Africa, possibly the world, to specialise in GPRS-based communication control systems for SCADA. Secondly, a big opportunity at the time was for us to be the first company in South Africa to provide financial transaction processing for EFT terminals and ATMs to connect through our specialised hardware and network communication infrastructure with the banks. We were the first company to do that using GPRS provided by the cell phone networks. Those two things

// I LIKE A CHALLENGE, I LIKE TO CREATE NEW THINGS, I LIKE TO BE INNOVATIVE //

combined gave us a tremendous boost.

From there, we had numerous other successes, but our primary driving force right now is a range of routers that are entirely designed, developed and manufactured in-house. We sell them to a variety of customers across a range of industries.”

MISSION CRITICAL Metacom’s success could be attributed to any number of factors but van Niekerk highlights two: The company’s large infrastructure, developed over 18 years; and a focus on first-class quality service which results in recurring income.

“We are crucial to the very earnings ability of the bulk of our clients,” he says.

“The true secret source of Metacom is the fact that we have built a virtual communication infrastructure. We have a virtual network with secure tunnels and encryption etc which runs on any available physical infrastructure at a location where it is required.”

He uses Pep Stores as an example.

“Pep uses our communication infrastructure for all of their communication requirements across all their branches in Africa. They connect with high-speed connectivity from their head office into our infrastructure and from there, they can communicate with any branch across Africa irrespective of how that branch is connected. It could be fibre, it could be satellite, it could

be DSL or whatever is available for the best price.”

A dreaded drop in communication infrastructure is not an option for Metacom. The company recognises the importance of consistent, uninterrupted, quality connectivity, and van Niekerk describes Metacom’s input as ‘mission critical’ for clients. For this reason, there are many back-ups built into the system.

“An area where we are particularly strong is providing incredibly reliable automated failover communication systems,” explains the CEO. “We find that most of our customers use dual-GSM connectivity because every product supports four sim cards, two chip SIMS and two plastic SIMS. In Africa, we’ll have primary communication using satellite, DSL or fibre with failover communications through GSM. We have really perfected this process and are now masters of it. Our customers are not even aware of whether primary or back up communication channels are used.

We try to have the two links across all of our sites so reliability is extremely high.”

The quality and strength of the networks developed by Metacom has resulted in the company looking to bring all of the associated activity inhouse, and this feeds into the Store of the Future concept – if they are already supplying network and communication equipment, it would make sense to also support multimedia and financial transaction processing technology.

“Developing secure reliable network connectivity for our clients is in our DNA – that is our core,” says van Niekerk. “Over time, part of our strategy was to build additional services that require a network to work on. In the past, we would provide a network for a client and the client would then get another independent supplier to provide multimedia services. Those services obviously require a network to operate on. When there’s a problem, it can be tricky to solve as no one is sure who’s responsibility it is. We have developed a number of additional services and vertical products that sit

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INDUSTRY FOCUS: TECHNOLOGY

on top of our network infrastructure.

Amongst these is a multimedia service where radio, television, streaming or offline play can be carried by our equipment, our hardware, our monitoring services, our network, entirely under our control.

“As we speak, we are in the process of installing more than 3000 sites in South Africa with our internet radio streaming services and media screens.

We’ve also built our own public Wi-Fi hotspot control mechanisms. This allows customers like Capitec to use our Wi-Fi hotspots in their branches across the country. We provide these additional services for our clients that require a network. We take full responsibility for all connectivity and any related service.”

GLOBALLY CONNECTED? The future for this South African success story will involve significant growth in its home market but also new business in Europe. Metacom opened its first office outside of South Africa, in Brussels, Belgium as it looks to gain access to the large markets across 27 European nations.

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“We wish to create opportunities for our people to travel internationally and be exposed to international markets. South Africa still holds a huge number of opportunities for us but I am a big thinker and I want us to expand,” explains van Niekerk.

“We started our office in Belgium in April 2017 but it took us a long time to get the administrative aspects of the company established. We are now starting to get traction and we will probably start employing people next year. We have appointed a regional executive in Johannesburg, who opened our office there in September, and we will also start to employ additional people next year too. I just appointed another new regional executive in Durban, so we are planning to build a Durban office as of Jan 1st.

“It will take a while, but the office in Belgium is going to do great things in the future. We want to build that office substantially to serve the entire region. We are looking at other opportunities around the world and we are ready to expand when there are good opportunities and good people.”

For the past two years, Metacom has

// DEVELOPING SECURE RELIABLE NETWORK CONNECTIVITY FOR OUR CLIENTS IS IN OUR DNA – THAT IS OUR CORE // grown by more than 40% per annum. In 2019, van Niekerk says that the company will likely grow by 50%.

“We have been extremely fortunate in that almost all of the products we have ever created have gone into market and are working very well. The recurring income for the company has grown every month for the past 18 years and clearly there is an appetite and a need for our services and we continue to grow substantially every year,” he says.

THE METACOM WAY For growing tech companies in Africa, the challenges are vast. Access to finance, access to sizeable markets,

METACOM

connectivity and constant change in consumer patterns have been cited as just a handful of significant hurdles faced by expanding businesses, but at Metacom the ethos is very different. A passionate and dedicated employee base, led by entrepreneurial problem solvers, in an industry with a big gap for an experienced player to fill, make for an exciting prospect, for now and the future.

“A lot of companies in our industry have been struggling but we are fortunate that we are unique as the only company that designs, manufactures, installs, supports, maintains, and has the entire infrastructure to provide a true turn-key solution,” says van Niekerk. “We have in-house the expertise for the entire communication solution and that means we can so often do things that others cannot because we write and develop the firmware in our network infrastructure. If customers need features or functionality that isn’t available in your off-the-shelf equipment, we can add it.”

He talks about ‘The Metacom Way’, a culture that has been woven into the DNA of the business since its inception. The concept is a whole eco-system, present

across Metacom’s entire operation, which involves going above and beyond for the customer, regardless of cost; placing quality customer service at the forefront of everything that is done; and above all, doing things with passion. This, he says, is why he is not set on hiring people with only an extensive technical knowledge – “that can be taught. But what cannot be taught is passion and a can-do attitude.

“The bulk of our people have been with the company for many years. The character of a person is more important than the technical ability. We have a very high average IQ (intelligence quotient) in the company so, next year, I will be embarking on a campaign to improve the company’s EQ (emotional quotient). If I can train everybody and improve their EQ, not only will the company perform better, it will be a nicer place to be. I’m not talking about only skills – what is really important for a successful company is mature, together, wise people. You can easily teach and test skills, but how do you get people to work together? Developing EQ is core to the success of any business.”

Rolling out the store of the future concept; designing, manufacturing and

installing routers across South Africa; opening new offices in Johannesburg, Durban and Belgium; all while consistently delivering the communication and connectivity infrastructure for major existing clients – perhaps the 85 staff at Metacom are robots, or magic? No, says van Niekerk. “Right now, we are under extreme stress in the company.”

Fortunately the stress does not come from a lack of business. “What we have to complete before the end of the year, I have no idea how we will do it.

Our challenges come from us continually bringing in so much work. It is difficult, I am stressed and I am working very hard but I enjoy it because I am passionate.

As long as we continue to do a good job – and we are absolutely committed to excellent customer service – I believe we will remain partnered with our clients for many years to come.” he concludes.

WWW.METACOM.NET

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FLOWCENTRIC TECHNOLOGIES

Keeping Processes

Running Smoothly PRODUCTION: Benjamin Southwold

Business process management (BPM) is a vital cog in an enterprise: it helps to discover, model, improve and automate business processes. FlowCentric Technologies is a software development company that delivers BPM software to a global market, enabling customers to digitalise their businesses with less effort at a higher quality.

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INDUSTRY FOCUS: TECHNOLOGY

//

“Our BPM software allows organisations to easily optimise, manage and integrate their business processes,” sets out FlowCentric Technologies, and the numbers don’t lie when it comes to proving the success of its approach: more than 1700 solutions have been built to date, serving 32-plus industries and 180,000 regular users.

Established in 2000 and headquartered in South Africa, FlowCentric Technologies has built up a global footprint along with regional offices in the UK, India and Australia.

The company’s BPM software is delivered to many more territories through an international network of channel partners.

FlowCentric Technologies channel partners provide consultation services, software

implementation services, and bespoke industry solutions respectively. Denis Bensch, CIO, FlowCentric Technologies, outlines what sets this company apart from

the plethora of similar outfits which have sprung up in South Africa since the advent of the digital age.

“We believe that we are the only South African-based BPM product that can truly play in the corporate to enterprise space for complex workflow management,” he sums up.

“In comparison to established international plays, we can also offer more competitive prices as a result of being physically based in South Africa.” FlowCentric Processware is built to manage complex business processes across departments, countries, and systems. This, the organisation’s proprietary BPM software, is used by medium and large companies across multiple business sectors to digitise and automate their business-critical processes.

DIGITISING THE SECURITY OFFICER It is essential for companies to accurately manage time and attendance records on behalf of their employees; an effective time keeping solution helps organisations to control overtime, manage tardiness and reduce processing time. Knowing this, FlowCentric has combined industry best practises with powerful technology the innovative Eldir: Digitised Security Officer (DSO).

Eldir: DSO has been jointly

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FLOWCENTRIC TECHNOLOGIES

developed by security, process management, and technology professionals to provide security companies with an efficient way to manage their assets, contracts and security officers to proactively manage the company’s operations.

Denis Bensch leads the product development and innovation team at FlowCentric Security Systems gave us some background on the company’s decision to move into the security market through the launch of this new product , the result of a compelling collaboration between security and software experts. “We made the strategic decision to build vertical solution on top of our own BPM and

automation platform, FlowCentric Processware,” Bensch explains.

“A gap in the security market was identified as there was no software specifically written for the security industry. The management team decided it was an incredible opportunity to leverage the power of FlowCentric Processware to take advantage of this opportunity.

The Eldir: DSO solution has been developed to manage the lifecycle of each security officer, as well as the supporting functions and assets associated with the industry.

“We want to assist companies across Africa in saving huge amounts of money, through better, easier

personnel and asset management, and have our sights set on global expansion within the next five years.”

INDUSTRY BEST SOLUTIONS The collaborative solution between FlowCentric and MineRP - Digital Twin Mine Management - was awarded the top accolade at the third annual MTN Business IoT Conference and Awards: the MTN Business Internet of Things (IoT) Solution of the Year.

The solution makes use of virtual reality (VR) technology to provide users with a fully mapped digital twin of a mine’s terrain. Users can navigate through the virtual tunnels, and if any actionable data is detected, the

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www.enterprise-africa.net / 47

INDUSTRY FOCUS: TECHNOLOGY

Denis Bensch - CIO

// OUR BPM SOFTWARE ALLOWS ORGANISATIONS TO EASILY OPTIMISE, MANAGE AND INTEGRATE THEIR BUSINESS PROCESSES // appropriate business process can be initiated either automatically or by the user through the VR environment.

Once a process has been initiated, the FlowCentric Processware engine will route tasks to the appropriate personnel and divisions to coordinate and complete. The BPM software ensures

48 / www.enterprise-africa.net

that each task is customarily completed in a compliant, efficient manner, while maintaining a complete audit trail of each step of the process.

On the collaboration between MineRP, FlowCentric Technologies and Sperosens, Bensch comments: “With companies like MineRP

finding increasingly innovative ways to gather and connect data to people, it is only and matter of time before BPM will become commonplace, used everywhere from an underground mine to your own home.

“In time, Industry 4.0 may become the new normal too.”

FLOWCENTRIC TECHNOLOGIES

BETTER TOGETHER The co-operation with MineRP is a fine example of something in which Bensch is a starch believer: the power of working together.

“The collaboration was a perfect example of efficient integration of three distinct technologies from three diverse companies to produce a meaningful solution.

“FlowCentric Technologies has similar collaboration partnerships with other companies that have proved remarkably successful, delivering win-win advantages for all parties involved,” he adds. This is one fundamental way in which Bensch feels that businesses can respond effectively to threats, both unforeseen and predicted.

Rare is the business today that has the full depth and breadth of knowledge, or all the skill sets required, to develop the innovative solutions that are required to deal with emerging threats and pursue new opportunities as they arise, which is why collaboration has become such a key part of success.

“If you are large enough, or wealthy enough, you may be able to buy in different skill sets,” Bensch says, “but finding those skills and integrating them into your organisation can be a timeconsuming and expensive process.

“Far faster, and more cost-effective,

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is to collaborate with other businesses that can immediately deliver the skills and knowledge you require. That’s why forward-thinking companies are actively developing their partner ecosystems,” he concludes. ”Don’t focus on making money

from your partner; instead focus on creating solutions that you can sell to customers together.”

WWW.FLOWCENTRIC.COM

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BID4CARS

Tech Investments to be Rolled Out in 2019 PRODUCTION: David Napier

Following a significant investment into its technology offering, South Africa’s leading vehicle auction and management company, Bid4Cars, is set to roll out a new and improved system in the first half of 2019. GM, Mike Scarth talks to Enterprise Africa about the company’s ongoing success.

//

There is an emerging trend in South Africa’s automotive industry that is helping big-name dealerships streamline their stock and contributing to the development of the lower-end of the market by assisting smaller dealers access supply of quality vehicles for their forecourts.

Consider the situation; you head to your local dealership – a big name from South Korea. You take your current bakkie, a reliable model from a Japanese brand, and complete the trade in. You get a shiny new car, and the dealership is left with your old vehicle.

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The dealership could sell it, but it’s not their brand, it’s not brand new, and it may not be what their target audience expects. So, they need to find another way to dispose of the vehicle while still generating revenue.

The answer: Bid4Cars, a Johannesburg-based, business-tobusiness, vehicle auctioning and management organisation. Founded in 2008 in the Western Cape, Bid4Cars has grown steadily, accelerating its reputation each year thanks to a constant focus on technological leadership and frequent development of critical mass.

The idea of auctioning was experimented with by a small pool of dealerships and the goal was to be fair and transparent. Dealerships were finding that they were cornered by a handful of buyers that would determine the prices of vehicles. It made sense to grow a platform that would bring a larger pool of buyers into play. The virtue of that meant that the buyer market would grow and the result of that was that vehicle value was determined correctly. Instead of being cornered by a handful of dealers, these companies were exposed to a much greater pool of buyers.

INDUSTRY FOCUS: AUTOMOTIVE

Today, the company enjoys an extremely strong reputation in the country’s automotive sector. It is a trusted partner of many of the major international brands and will be looking for further growth in 2019.

In May, Bid4Cars welcomed a new General Manager, Mike Scarth who is putting his years of experience with the Imperial Group to good use.

“I’ve been in the Imperial group since 2003 where I have had many different roles. Most recently, I was working with Renault South Africa as the GM of Marketing,” he tells Enterprise Africa.

TECH-BASED Bid4Cars service is digital. It is conveniently positioned over an online platform which the company has recently invested R2 million into upgrading.

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“Over time motor vehicles become aged and technology moves on quickly with new models being introduced. That’s very much like our technology, we have to move very quickly with the market,” says Scarth.

“We are prescribed to improving our software adoption and we find ourselves with a great new technology that allows us to adopt e-commerce principles. We are also exploring machine learning and we believe it has its place within the realms of auctioning. The investment has already taken place and we are building a new platform which is in Beta testing right now. We expect that by March 2019, our new platform should be market ready,” he adds.

Daily, Bid4Cars has more than 400 vehicles up for auction. It boasts that 80% of all vehicles loaded and

// WE EXPECT THAT BY MARCH 2019, OUR NEW PLATFORM SHOULD BE MARKET READY // advertised on its platform are sold at market value, and it offers dealerships the ability to manage the disposal of this stock easily through one single device. Buyers are not charged commission on cars bought and only pay their highest bid placed.

Conveniently, all bids are inclusive of VAT, and sellers will only be invoiced upon successful sale and not per vehicle loaded.

Scarth suggests that a big draw for dealerships is the company’s in-depth knowledge of the vehicles it processes.

BID4CARS

“Although we are seen as an auction house, we do have a separate value proposition and that is the ability to provide dealerships with the digital means of doing vehicle appraisals,” he says. “Traditional dealers will use books and papers to conduct vehicle appraisals whereas we have introduced that in a digital version. It allows dealerships to conduct all of their trading activity digitally and that allows them to capture everything, which allows the dealer to extrapolate, turning that data into meaningful information to help them make better decisions. We have improved the process on the valuation side considerably and if we compare it to the auctioning side, we have found that dealerships still want to find a quick and thorough way of liquidating assets and buyers want to find an easy way to make buying decisions.”

The updated technology also allows buyers to take part in tailored auctions, where maximum information is served allowing for a fully-informed decision making process.

“There is big demand in the market for customised auctions,” Scarth details, “we have introduced the ability to make offers on vehicles that haven’t met their reserve, everything will be mobi-responsive, and we have completely overhauled the app where buyers and sellers can get a good idea of what is currently available. Traditionally, we have been very desktop-focussed but we are now looking at being responsive across desktop, tablets and mobile. It’s about enhancing the experience for both buyers and sellers by staying in line with basic e-commerce principles.

“The better the experience for the buyer and seller, the more trusted your platform. A lot of the buyers need a clear picture of a vehicle – the way it looks, all the details and descriptions about it, clear imagery – these are what buyers are demanding and so that is what we are putting into the new platform,” he adds.

NO SLOWDOWN After establishment 10 years ago, Bid4Cars has been through a number of significant ownership changes.

Its founders, a tech developer and a local entrepreneur, tested the idea extensively before onboarding Hyundai South Africa – a significant brand in the country’s automotive sector. “The platform was rolled out across the entire Hyundai network and the success was immense,” says Scarth.

In 2009, Bid4Cars became part of the Imperial Holdings portfolio and utilised its position within that group to build its customer base. When Imperial announced in 2017 that it would reorganise its business into two separate divisions; Imperial Logistics and Motus, Bid4Cars was categorised as part of the “vehicles division”, Motus.

In November, Imperial Logistics and

Motus were unbundled and listed as two independent entities. Where most would find this uncertainty challenging, Bid4Cars has continued to operate seamlessly, and Scarth predicts no slowdown in the future.

“The unbundling has resulted in Motus becoming a completely separate business from Imperial and the shares have been spilt on the JSE,” he says. “My outlook is that it will be business as usual. We continue to play a key role in the motoring industry and we don’t foresee any significant changes at this point.”

In fact, it looks as though the company will pick up new clients in the New Year – a few of which are countrywide, further solidifying the company’s importance in the industry.

“We have seen a shift where we are talking to businesses that want

is an Online new, used and demo vehicle advertising platform.

The Carfind.co.za website has 2 main functions: 1

A platform that allows people to easily look for a vehicle that they wish to purchase.

2

A platform that allows private people or dealerships to list and sell their vehicles.

These vehicles include Cars, Bakkies, Motor Bikes, Caravans, Boats, Trucks and both Commercial and Leisure Trailers.

The Carfind.co.za platform also provides opportunities for Auto Promotions and Allied Services such as Insurance/Car Track/Vehicle Facts etc via various Banner Advertising packages.

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INDUSTRY FOCUS: AUTOMOTIVE

// TRADITIONALLY, WE HAVE BEEN VERY DESKTOP-FOCUSSED BUT WE ARE NOW LOOKING AT BEING RESPONSIVE ACROSS DESKTOP, TABLETS AND MOBILE // to dispose of their fleets or rental programmes – that is a new flavour for us,” admits Scarth. “We are finding ourselves growing outside of the dealership group and into businesses that want to dispose of large amounts of vehicles. We are still exploring the opportunities and we are in negotiation with a large fleet business right now.”

But, focus on Bid4Cars core business will not be sacrificed as the company looks for diversification in its client base.

“Hyundai views Bid4Cars as a key partner. They contribute significantly to our platform and our relationship is going into its 11th year. From a group perspective, we also partner with Kia Motors, Renault South Africa, the Multi Franchise brand from Motus, Tavcor Motor Group, Eastern Cape Motors,

and we are close to signing up another group of dealerships to the platform,” Scarth ensures.

ON A REALLY GOOD TRACK South Africa’s automotive industry receives a large amount of attention each year, from both government and the private sector. Auto-manufacturing accounts for 34% of all manufacturing in South Africa (manufacturing is worth 13% of GDP). Beyond manufacturing, the auto sector, and all of its associated value chains, are vital to the local economy (or any economy), and the government has offered up the Automotive Production and Development Plan (APDP) and the associated Automotive Incentive Scheme (AIS) to assist in boosting this vital sector.

Scarth believes that bolstering any part of the industry will bring benefits to the economy and is happy with the noises being made by government.

“We have to focus on the longterm prospects of the automotive industry. The government’s decision to revise the APDP, in line with providing incentives to produce and manufacture in this country, is the subject of a lot of interest,” he says. “The relationship between government and business is moving in the right direction; there is stronger cooperation going on between the two and the talks are becoming a lot more robust, but with that there is

a level of political uncertainty which contributes to decisions by OEMs about whether they should set up shop in South Africa.”

At the start of December, it was announced by Stats SA that the country had exited technical recession, with 2.2% growth in 2018’s third quarter. Of course, this is positive reading for any business, especially those that are active in industries desperate for FDI. “The macro-environment must provide a greater sense of certainty to make it attractive for OEMs to come and consider South Africa as a destination for manufacturing. At the moment, we have seven OEMs manufacturing in South Africa but there is definitely scope for more to come. South Africa’s policies have to be continuously reviewed to ensure we are keeping up with the times, and by reviewing these policies to make them more robust, we should be able to attract investment. By just installing a little more confidence, South Africa will be on a really good track to bring in a lot more investment.

This country has the companies to complement manufacturing and is far along with the growth of Development Zones which catalyse the industry, so my outlook is optimistic. We are in a used car space but bringing in more OEMs and growing our economy will naturally filter down to platforms like us and help us to contribute to growth,” says Scarth.

TECH BACKED BY PEOPLE From three 10 years ago, Bid4Cars staff complement is now up to 15 and job creation is at the forefront of the mind of the General Manager. His view is that by driving the development of new business, Bid4Cars will drive the need for people.

“The outlook for the company in the next year is to expand and for our staff-base to expand – that is the end goal,” he says.

“If you have an environment where you can create business, then you can create jobs. The term ‘job creation’ is

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BID4CARS

used quite loosely, my view is that business creation is key as if you create business, you create jobs.”

He says that, despite the company’s status as a technology business, it is people that back up the performance of technology. Since its earliest days, Bid4Car’s work has been about building relationships, and then delivering for its clients.

“Although we are a technology driven business, we can’t shy away from the human factor which plays a pivotal role. Relationships for Bid4Cars are paramount. We will continue to try our best to maintain relationships with our key partners and grow relationships with new brands.”

In the future, growth will be achieved by gaining more customers – both buyers and sellers.

“Keeping critical mass is so

important,” reminds Scarth. “The amount of buyers and the amount of sellers needs to be fuelled constantly; you can’t have a platform with just one side.”

And parties from both sides end up on Bid4Cars platform thanks to the development of trust. Trust is the key aspect of any business but even more so in the auctioning space.

“The reputation management has required a lot of focus because buyers and sellers need a sense of trust, so that is where I have concentrated a lot. Any buyer or seller that buys from an auction has more risk than walking onto a forecourt where the purchase is protected by the Consumer Protection Act. Driving e-commerce principles, and managing the trust and reputation has been the main education for me,” says the GM.

Fortunately, the company’s reputational advantage is strong, and with investments into new technology set to be completed in the first half of 2019, next year looks set to be another strong one for Bid4Cars. Backed by Motus (which reported revenue of R77.7bn and operating profit of R3.6bn at the end of June) and enjoying the support of some of South Africa’s biggest auto brands, Bid4Cars is perfectly positioned to achieve the growth it wants and expects.

WWW.BID4CARS.CO.ZA

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LOMBARD TYRES

35 Years of

Tireless Innovation PRODUCTION: Benjamin Southwold

Lombard Tyres is celebrating 35 years of success and innovation, a spell characterised by hard work, dedication and exploration in one of South Africaâ&#x20AC;&#x2122;s unsung, yet crucial, markets.

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INDUSTRY FOCUS: AUTOMOTIVE

//

“Partner with Lombard Tyres and you will encounter a one-stop fitment shop.” This is the essence of fitment outlets with are set up to offer a comprehensive range of products and services, among them wheel alignment, wheel balancing, fitment, rotation and tyre puncture repairs.

Lombard Tyres fitment centres are also the preferred retail channel for both the Korean Kumho Tire Co. and Goodride Tyres in South Africa, and tyre fitment solutions are available at all of its 22 retail outlets at the pinnacle of value, service and quality. Complementing this tyre offering spanning passenger, light truck, off-road tyres and ultra-high performance tyres, and the full and diverse range of fitment services, for passenger and commercial vehicles alike, is a wide range of automotive components.

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35 YEARS OF GROWTH Tyre brands sold include Kumho Tyres, Goodride Tyres, Continental Tyres, Bridgestone Tyres, Firestone Tyres, Goodyear Tyres, Michelin Tyres, BF Goodrich Tyres and Pirelli Tyres. One of Lombard Tyres’s main strengths is the diversity of its offering, and the ability to service all market sectors with products geared toward both the public and commercial applications.

The company has seen growth very recently, through the opening of two new retail outlets and further facilities incoming in wider Africa.

“It all started with one shop, next to a service station where Mr Mauritz Lombard used to sell tyres,” CEO Renier Botha outlines. “Over the years the business has grown to the point that we now have more than 20 retail outlets and 10 warehouses spread across the major cities in South Africa.

We import Kumho tyre products from

South Korea and have sole distribution rights to the Kumho passenger, light truck and recreational tyres in Southern Africa. We are also exporting to other African nations.

“We now have a commercial truck division and a Bandag Retreading factory, so from that one little shop 35 years ago it is clear to plot how rapidly the business has grown into a considerable corporate company.”

To reach 35 years of operations is no mean feat, and has only been made possible by a conscious effort on Lombard Tyres’s part to fully embrace innovation to build forward momentum.

This has led to some notable landmarks, as Botha told remarks.

“In recent years we have opened more retail outlets, as well as another warehouse which we opened in Maputo, Mozambique.

We have stepped up our exports to

LOMBARD TYRES

KEY SUPPORTING ROLE Lombard Tyre’s expansion has been in line with the development of the sector itself. The South African Tyre Industry is worth approximately R30bn per annum, and is one of the key supporting industries for the dominant domestic automotive industry.

According to a recently released TechSci Research report entitled ‘South Africa Tyre Market Forecast and Opportunities, 2020’, the tyre market in South Africa is forecast to grow at a CAGR of over 11% in the next two years. Among the prominent reasons for this soaring growth are government incentives encouraging domestic and foreign investment in the sector and further growth in the country’s automotive sector.

It is the passenger car tyre segment that is projected to witness the fastest growth during the forecast period, due to the estimated increase in passenger car sales, expanding consumer base, increasing urbanisation and the introduction of electric vehicles in the market.

“Citing growth opportunities in the passenger car market, major global automotive companies have established their manufacturing or assembly plants in South Africa. Apart from catering to domestic demand, these companies also export automobiles to

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other African nations, too; we now distribute to Namibia, Botswana, Zambia, Malawi, Zimbabwe, Mauritius, Mozambique, Lesotho and Swaziland.”

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neighbouring countries, consequently fuelling growth in South Africa OEM tyre market,” explained Mr Karan Chechi, Research Director with TechSci Research.

Such lucrative industries are always linked to strong competition and a tough industry in which to get ahead, as Botha points out. “We are one of, if not the biggest, independent dealers in Southern Africa,” he says proudly. “We consider ourselves to be a large and responsible role player in the retail and wholesale market. There are around 2000 independent tyre dealers in SA trying to make a living in a market with around 10 million cars, however, so this is very competitive and challenging.”

Lombard Tyres, though, has that special combination of constant focus on quality, ambitious growth plans and a peerless product range

that leaves it positioned to keep ahead of the chasing pack. “Kumho research and development is very strong,” rounds off Botha of one of his company’s key partnerships.

“There is a huge untapped market with 4x4 and light truck vehicles but we are a small part of the Kumho export machine. When a customer has a Kumho fitted, they return for the same product next time around because the quality is so ahead of the rest,” Botha goes on. “We have such a wonderful product, which has proven itself in all fields, while the quality speaks for itself.”

WWW.LOMBARDTYRES.COM

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BRIGHTS HARDWARE

Brights Succeeds

With Strategic Five-Year Plan PRODUCTION: Karl Pietersen

If youâ&#x20AC;&#x2122;re undertaking DIY or building projects in the Western Cape, then thereâ&#x20AC;&#x2122;s a strong chance you or your contractor has been into a Brights Hardware store. This leading retailer has been focussing on delivering quality service for almost 50 years. CEO and second-generation family leader, Orlando Luis talks to Enterprise Africa about how Brights will continue to deliver exceptional products and service while growing its footprint across the Cape.

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INDUSTRY FOCUS: RETAIL

//

In February 2016, , Orlando Luis – CEO of leading Western Cape hardware retailer, Brights Hardware – told Enterprise Africa that his company was set firmly on a growth path. His plan to carefully expand the store network is now underway and Luis talks to Enterprise Africa again, saying that in five years’ time the company will have 10 stores around Cape Town, and will be diversifying its client base and shopping experience to prepare for imminent changes in the market.

Brights Hardware was founded in 1971 by Orlando’s parents and from then until now, the familyowned business has been focussed on delivering a personal service and quality products. The company stocks a massive range and can offer

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everything from braai equipment and home DIY tools to industrial building materials, paint, and much more.

Expansion of the Brights store network is part of a strategic five-year plan which began in 2017.

“We completed one new store in Mitchells Plain bringing the total number to eight,” says Luis. “We are aiming to open another two to bring the total number of stores to 10. The next will open in Table View and that should happen in the next 12 months. Number 10 will be somewhere in the southern suburbs, but we have not finalised the location yet. We have been held up slightly as we are relocating our Stikland branch which is our second oldest. It is one of our key branches and is being relocated to a 6000m2 site, doubling the space we have now. The existing

store is in an industrial area and we want to move into a residential area.

It’s not even one kilometre away but will give us much better parking and retail shopping experience. It will be an all-round massive improvement for the store and will be much more open and welcoming which will help drive our strategy of getting more people through the doors.”

The eight current stores are supported by a purpose-built distribution centre which allows for the smooth flow of products to wherever they are needed.

“We have a distribution centre of more than 6000m2 with capacity to grow by another 1500m2 if we need to. As we grow, and we start supporting more independent hardware stores, the distribution centre will become busier,” says Luis.

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// THE SPEED AT WHICH TECHNOLOGY CHANGES MAKES IT DIFFICULT TO PLAN ONE YEAR AHEAD, LET ALONE FIVE YEARS // Brights Yard

RETAIL IN A FIX Operating in the retail industry is a real challenge right now. There’s the ever-growing threat from online retailers, offering cut-throat pricing.

There’s the impact of a weak economy on consumer’s pockets, and there’s the changing dynamics of the industry with modern advertising encouraging different sectors of society into the market. Only those that can adapt will thrive in such a quickly-changing space. The effect on the industry is already starting to show in Europe where some big department stores have been unable to compete with digital competition, and their big costs for large store networks have forced them into trouble. In South Africa, the picture is particularly bleak in the retail space.

In 2017, the industry generated R1

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trillion in sales – that’s around R31,900 per second – but just 7% of that spend was on hardware, marking a 0.7% contraction compared with the previous year.

At Brights, Luis began the process of building an online store many years ago and is firmly concentrating on making that store as seamless as possible. Almost everything can be purchased online, accept for bulky items which are uneconomical to deliver. Over the coming years, Brights

// WE COMPLETED ONE NEW STORE IN MITCHELLS PLAIN BRINGING THE TOTAL NUMBER TO EIGHT //

will continue to add to its online store, eventually taking the online range to more than 20,000 items.

“It should take us around four years to get up to 20,000 but right now have over 5000 items in our online shop,” details Luis. “We are working very closely with our suppliers to ensure that we get all of the correct information on our online store. We have a database with more than 50,000 products so it will take some time but we are making sure we do it right. The manpower to get everything online with the correct information is what takes the time.”

He adds that for industrial customers, it still makes sense to collect some items because of their weight.

“Delivery costs with building materials means it doesn’t always make sense to buy online as it can

BRIGHTS HARDWARE

// TWO YEARS AGO, OUR CUSTOMER BASE WAS AROUND 19% FEMALE AND WE HAVE IMPROVED THAT TO 21% // become very expensive just for delivery because of the weight. Luckily, our market is a mixture. Even a 20-litre tin of paint is not something people will buy online because the weight is so immense it makes the delivery cost so big and it doesn’t make sense.

Anything smaller - hardware, electrical, tooling, irrigation, plumbing – those are getting bigger in the online space as the weight means they are easily and affordably delivered.”

CUSTOMER DIVERSIFICATION Back in 2016, Luis was targeting a swing in the customer base at Brights, hoping to attract more female shoppers into stores. He noticed in 2016 that many female customers were shopping in the online store but few were setting foot in physical Brights branches. To entice them into the shops, Brights introduced new brands, larger products lines, various different ranges, and increased the size of stores. And it’s working.

“Two years ago, our customer base was around 19% female and we have improved that to 21%. It is a slow movement and it is very challenging, but we are targeting 33% in the next five years,” says Luis.

To get to the point where one in every three people that walk into his stores is female, Luis plans to continue

with a marketing push that also involves working in local schools so that youth know the name Brights.

“Our strategic plan also includes our influence in other markets like females in hardware and youth in hardware through the provision of training so that our customers can learn about the products they are buying.” Previously, the company has hosted workshops aimed at the female customer, teaching the basics for customers to gain an understanding when purchasing.

“We want to go into the schools and get the youth involved. The next generation is orientated around electronic devices and there is no emphasis on people using their hands.

Being a hardware store, we need people to be using their hands. So, it makes sense for us to focus on the

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INDUSTRY FOCUS: RETAIL

youth so that the next generation is practically orientated and they are confident using their hands. In the past, kids would learn woodwork, home economics and needlework in school but that has been lost so we want to go into the schools and deliver those skills ourselves.”

The CEO explains that this focus was part of the reason behind the relocation of the Stikland store – “it represents around 30% of our total turnover and that is mainly for a male customer. There is no space to provide ideas and options that will attract the female customer.”

The two oldest stores in the Brights business, Boston and Stikland, are responsible for around 65-70% of group turnover so Brights wanted to convert them to be much more female-friendly. “We have completed

the revamp of the store in Boston and we feel the Stikland branch relocation will really give us the space to show off to our female customers, with more space for products and more brands,” says Luis.

BIG BROTHER In an attempt to further strengthen its position in the Western Cape, Brights has begun striking partnerships with smaller, independent hardware retailers so that the industry can grow.

Often, smaller players in the market are not able to fulfil the needs of big customers or provide unique products for once-off jobs. Brights would like to work alongside independent stores in these situations so that the smaller player can meet the needs of its customers by ordering through the Brights central distribution centre.

“We are focussing on the development of independent stores,” details Luis. “We want to be like a ‘big brother’ to all of the small independent hardware stores.

Business is very tough. The water restrictions and other factors have caused havoc in our industry. We have seen companies close down because without water they could not repair, maintain or even paint. The building and paint industry took a real knock with the water restrictions – you had to have a tank of water on site to ensure you could continue. Because of our range of products – we have more than 50,000 compared to your average hardware store that stocks around 20,000 – we were able to survive and thrive. We have been around for 47 years because when one range slows, another picks up. I’d like smaller

Orlando Luis - Brights Hardware CEO

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INDUSTRY FOCUS: RETAIL

Brights Stikland

independent stores to look to us and our distribution centre so that we can supply them with a huge range. We would like to see the smaller stores try and stock a few more product lines and grow their businesses. If it works, keep it; if it doesn’t, give it back to us and we will sell it in our own stores.

We need smaller stores to continue creating jobs – this is where the future of South Africa lays.”

Combine the task of attracting different customer groups, building a powerful online presence, opening new stores, and running the existing network, and you have a mix for an extremely busy period. Luis says that, for now, he will not look beyond the company’s strategic five-year plan, and he will certainly not start considering the company’s 11th store until the true impact of online retailing is clear.

“We will keep working on the female market, the youth market and the local independent hardware store market, and that should keep us busy,” he says. “Only after that will we be able to look at how we go forward. By then,

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Brights Uitzicht

online shopping will be a massive factor whereas right now it’s not even worth 1% of our sales. We hope to see it grow to around 10%. I don’t want to act too quickly right now, putting in a lot of infrastructure only for a major switch to online shopping. We can’t plan further than five years – it doesn’t make business sense. The speed at which technology changes makes it difficult to plan one year ahead, let alone five years.”

A BRIGHTS FUTURE Luis remains positive about the future despite a bleak economic backdrop.

His plans to attract new customers and drive digital where possible will need the continued support and effort of the team. After almost five decades in business, Brights is now home to hundreds of employees, and training and developing those people is where Luis thrives.

BRIGHTS HARDWARE

Brights Plattekloof

“You cannot grow a business without developing your people.

Training is a massive part of our strategic plan – it’s very important to us. We also want to have all of our procedures and processes documented so that if tomorrow, the next generation comes and takes over the company, there is a manual of exactly what is needed to run the business. We want all of our processes running well, with proper structure so our strategic plan is a bit larger than just developing the store network and product range.

“We’ve grown to 850 staff and we expect that to reach 1000 by the time we open the two new stores.

Developing individuals is what stimulates me, as long as that is happening, I will want to be at work at all times. Making a difference in the lives of my staff members is what drives me.”

Luis remains confident that the performance of the South African economy will pick up, citing the country’s diverse mix of people as its main asset. His bullish positivity

// YOU CANNOT GROW A BUSINESS WITHOUT DEVELOPING YOUR PEOPLE. TRAINING IS A MASSIVE PART OF OUR STRATEGIC PLAN – IT’S VERY IMPORTANT TO US // is infectious and will, hopefully, help Brights to contribute in making building materials once again a top four retail commodity by total retail sales income (4.9%) as it was in 2014/15.

“Even with the new government and President Ramaphosa, it’s going to take a long time to fix things. It will take years; nothing like this gets fixed overnight. We have to be patient.

Business confidence will not return immediately, so those of us that have been here for a long-time have to show confidence and show that we will not give up.

“Make no mistake, things are tough. This year, we will only achieve growth of 5% and previously we’ve always achieved 10% as a minimum so we are not happy, but we have to understand that the country is going through a massive transformation. We do not focus on negativity, we only bring along people with a positive mindset. In South Africa, our people is our strength. Our diversity is not found anywhere else in the world and that is what will make us successful.”

Clearly, Brights still lives by its longstanding motto of ‘being more than just a hardware store’. Its five-year strategic growth plan is ambitious and exciting and, instead of allowing the company to be dogged down by negativity, Luis is building for the future.

“Our five-year plan will certainly keep us busy,” he concludes.

WWW.BRIGHTS.CO.ZA

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DE FYNNE NURSERIES

De Fynne Blossoms with Fynbos in Western Cape PRODUCTION: David Napier

‘Only the finest plants’ is the strapline for the De Fynne Nursery, a plant paradise, based in Paarl. The company supplies ornamental, exotic and agricultural plants to businesses across South Africa and, now on a 22-hectare farm, De Fynne is looking to grow its market share. Managing Director, Jacky Goliath tells Enterprise Africa more about overcoming challenges to make her company a national success.

//

De Fynne Nursery, the small agricultural business blossoming out of the Cape floristic region, is preparing itself for explosive growth in 2019. Founded in 2002 as a backyard operation by a partnership made up of a small-scale farmer and a part-time entrepreneur, De Fynne’s ambitions are now rather more grand than they were in the beginning.

Jacky Goliath and Elton Jefthas began their journey growing Coleonema, Phylica and Cyclopia in his garden. The pair produced around 1000 units of each per year. “His background is more financial and strategic, and I am the hands-on farmer, making things happen,” Goliath tells Enterprise Africa.

At the time, the business was like a hobby. The growing of quality plants for the small customer base was more

important than growing the business.

But after success with its three core products, De Fynne began to respond to demand and grow into indigenous, water-wise, fynbos plants.

South Africa’s fynbos is famous – beautiful, strong, and only present in the Western and Eastern Cape. It grows in acid sands or nutrient-poor soils derived from Table Mountain sandstones and is perfectly adapted to the unique

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INDUSTRY FOCUS: RETAIL

// WHEN WE STARTED, WE WERE PLAYING AROUND WITH PLANTS AND WE NEVER THOUGHT WE WOULD GROW TO THIS SIZE. WE NEVER KNEW BIG COMPANIES WOULD COME TO US TO DO BUSINESS AND WE NEVER THOUGHT WE WOULD HAVE A BIG STAFF COMPONENT // conditions of the region.

Growing fynbos is not easy.

Certain groups of plants can be extremely difficult to raise, even for professionals. But De Fynne has tweaked and adjusted its product range over the years to now include many different shrubs, Leucadendron, Leucospermums and Proteas.

Most know fynbos for the number of Protea-members in its mix (particularly the King Protea, the country’s national flower), a symbol of hope. The De Fynne Nursery business is the perfect example of what can be achieved when determination and hope is at the core of everything you do.

“As of October 17th, we were 17 years old and it feels like forever,” remembers Goliath. “When we started, we were playing around with plants and we never thought we would grow to

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this size. We never knew big companies would come to us to do business and we never thought we would have a big staff component. I would not change anything that I have done or anything I have learned.”

From two, the company is now home to 30 people, and even more when the farm is busy. De Fynne’s products are found all over South Africa, and some of the country’s biggest retailers have partnered with the company, helping to build a thriving, sustainable business.

REACHING CAPACITY In 2005, De Fynne moved from Jefthas’s garden to a half-hectare site in Kylemore, close to Stellenbosch, in order to meet the growing demand from its clients. At this new site, two full-time employees were hired, and two full

grow-tunnels were installed to help maintain 20,000 plants. But after three years, it became clear that the water supply to the site was insufficient to sustain the growing business and, in 2008, De Fynne moved again, this time just 10km away, to a 1.5-hectare site in Simondium. The new site allowed the company to flourish, with room for 600,000 plants and 15 full-time and 10 part-time employees. The fynbos range grew quickly to include plants such as Erica and Buchu, as well as fruit trees, research material and agricultural crops.

But again, the company outgrew its home and was forced to move once more to a new space in Paarl. The 22-hectare farm is the perfect home for De Fynne and has opened up avenues into new markets. For Jacky Goliath, the challenge now is to make the most of the land available.

DE FYNNE NURSERIES

“We have a 22-hectare farm that we are currently working on. We are focussing on filling up this farm and making it productive before we will go looking for new land,” she says. “We have plums on one side and the wholesale nursery on the other. We are currently using 70-75% of the farm effectively, so we do have room to expand.

“When we came onto this farm, there was some plum orchards but some of them were old varieties and old in age, so we are slowly pulling out the old trees and we will be planting those areas with more productive varieties.

“All products from the nursery currently go into the South African market only. Our market share is small, so we believe there is still lots of room for us to grow. Our plums are harvested on our farm and are exported to European and Asian countries,” she adds.

One of the catalysts behind the development of the business has been a relationship with one of South Africa’s leading retailers, Woolworths.

The national retail chain has, since 1931, put quality at the heart of everything it does, and according to Goliath, this matches perfectly with the ethos at De Fynne.

“Woolworths is a high-quality brand,” she says. “Compared to other retailers in this country, Woolworths is the one that stands out when it comes to quality and the reason why our relationship works is because we supply quality products. We believe in our products and we are only selling quality products.

“Woolworths is one of our biggest clients. We have been working with them for more than eight years and we wouldn’t be where we are today without their help.

“We first encountered Woolworths

with an indigenous plant that we had only little stock of. At the time, we only had around 500 of them and we were actually surprised to hear that they would take such small quantities from us. We knew they were a big brand with many big stores, so we assumed we would need thousands of products to be a supplier to them. But they took us in and all of the products sold very well.

The year after, they asked us to increase the volumes we supplied. Currently, we are doing a number of products for them, in much bigger volumes than what we started with.”

From Paarl, De Fynne’s products are sold in Woolworths stores all over South Africa. “They move through Woolworths three DCs in Gauteng, KZN and the Western Cape. Lavender is our most popular product from July until October.

Currently, blueberries are popular. We

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INDUSTRY FOCUS: RETAIL

are sending them right across the country. With blueberries, people can harvest their own fruit. Woolworths has a grow your own range of products and people can take them home, nurture them, and harvest their own fruit.”

As well as Woolworths, you can find De Fynne products in selected Builders Warehouse, Spar and specialist garden centres.

// THE ORIGIN OF OUR WATER IS THE BERG RIVER, AND IT DRIED UP IN FEBRUARY SO THERE WAS NO WATER FOR A LONG PERIOD. AT THE NURSERY, WE HAD TO THROW AWAY SOME OF OUR PLANTS AS WE COULD NOT WATER THEM //

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DROUGHT CHALLENGE Away from the challenge of growing a business from nothing, in an extremely challenging economic period, where agriculture has been in decline, De Fynne has had to deal with some of the worst droughts in recent history.

In 2017, rainfall was low and the dams all but dried up. Cape Town’s water restrictions were fierce and De Fynne felt the brunt of the drought.

“The fynbos is a water-wise product,” says Goliath. “In the nursery, it uses less water than a normal exotic.

But, because it comes in a container, you still need to nurse it. It means the plant can’t let its roots into the ground to find water itself in open soil. In the nursery, we have to water on a daily basis. We have had water restrictions in place in the area meaning we couldn’t use the amount of water we needed across the nursery and the rest of the farm. The origin of our water is the Berg River, and it dried up in February so there was no water for a long period. At the nursery, we had to throw away some of our plants as we could not water them. We also had to decrease overall production

for fynbos and agricultural crops during that time. We have a borehole on our farm so for February, March and April we had to tap into the borehole to carry us through. We also started a recycling reservoir in the nursery, using the runoff from the nursery, bringing it back to a central point, and cleaning it for re-use.”

Unfortunately, the water crisis is an ongoing issue. While ‘day zero’ was avoided and the regions dams have been somewhat restored, most agree that through the upcoming summer months, water will become scarce once again. Various restrictions are already in place and De Fynne has been looking at what it can do to secure its operations and be a responsible corporate citizen.

“Of course, the drought was not good – it had a big effect. However, it did make us think about what else we could do to save water and run the business more sustainably,” admits Goliath.

“We are aware that, for the next two to three years, we are going to struggle with water. People are scared about what will happen in February and March because it is the driest period and we really need water

DE FYNNE NURSERIES

// I OFTEN TELL PEOPLE THAT, YES, SOUTH AFRICAN LAW FORCES COMPANIES TO WORK WITH BLACK FARMERS OR BLACK ENTITIES BUT I BELIEVE PEOPLE CHOOSE TO WORK WITH US BECAUSE OF OUR QUALITY AND NOT JUST BECAUSE WE ARE A BLACK COMPANY AND YOU NEED US FOR YOUR SCORECARD // on the farm. We have the reservoir that we have built for recycling water – none of the run off is discarded. We are also looking at the irrigation systems we have and planning to use less overhead spraying and more drip irrigation. This is where water is dripped directly in to the pot rather than being sprayed on to the leaves and running away. There are many new methods that we are looking at. We are even looking at our potting soil and looking at using soil that keeps much more moisture over a longer period compared to the previous soil mix we used.”

BUSY GROWING De Fynne holds the vision of ‘providing a consistent supply of high-quality indigenous plants to the nursery, retail, landscaping and agricultural industry of South Africa’ and to date, Goliath is pleased to report that this has largely been achieved.

“I know that sometimes companies start with a vision and a mission and somewhere along the way you can

move away from it. I am happy to say that we are still sticking to our mission and we feel chuffed that we are still doing what we set out to - high quality products for the industry. Everything we do is about quality, and our relationship with Woolworths is proof of that.”

And she is keen to point out that quality is what De Fynne stands for and wants to be known for. The effort that goes into producing fynbos sprouts is large and means it makes no sense to create an inferior product.

“I often tell people that, yes, South African law forces companies to work with black farmers or black entities but I believe people choose to work with us because of our quality and not just because we are a black company and you need us for your scorecard. Our customers come back to us every time – they like what we do, they like what we stand for and I feel very comfortable saying that people work with us because of our quality products,” says Goliath.

South Africa’s Cape Floristic Region faces its own challenges as so many plants are endangered and found nowhere else on earth. De Fynne is playing its small part in protecting and spreading the nature on its doorstep. Combining this idea with the development of new and in-demand products will undoubtedly see the company expand.

“In the long-term, we will focus on our core which is fynbos and waterwise products – that is how we started and it’s a very important range now,” explains Goliath. “We have also added agricultural products. Ornamental and exotic plants are beautiful, but people need to eat. To diversify the business, we have started to work on agricultural products where we grow and sell fruit plants – that’s peaches, apples, pears which we supply to the commercial agricultural sector through a wholesale model. It also includes honey bush tea, olives, blueberries, cherries and many more. We are known as a nursery that focuses on both horticultural and agricultural products.”

This multi-focus will allow De Fynne to continue building its workforce, employing more people and upskilling for a richer and stronger industry.

“The agricultural sector is one that is creating the most jobs. For a nursery, you need people to make cuttings – that is done by hand; the weeding and clearing is all done by hand; and we know that we will create more jobs – that’s a given,” says Goliath.

And those jobs are valuable.

Under the tutelage of a ‘Department of Agriculture, Forestry and Fisheries First Prize-winning entrepreneur’ and a ‘Most Influential Women in Agriculture 2014’, employees learn a lot, and their education is not limited to agri-skills.

Jacky Goliath shares her experiences of running a business, and everything that goes with it, with everyone at De Fynne.

“I am responsible for everything in the business – HR, health and safety, people management, production, sales, client relations, budgets, payments, and everything. I am now 30% in the office and 70% outside. This is a working farm, nursery and orchard.

I am a farmer – I do everything.”

Like the King Protea, which doesn’t flower for the first four or five years of its life, De Fynne has taken time to reach a mature state. Now that its reach covers South Africa, its reputation for quality is incontestable, and it continues to target increased market share, this growing company remains one to watch.

“I wouldn’t change the failures we’ve had or anything we’ve been involved with. This business is my passion and it doesn’t feel like work. I stay on the farm – it’s a lifestyle. I enjoy every moment. Yes, times are stressful, especially in the South African agricultural context as a black female, but I am still going strong and very much enjoying what I am doing,” Goliath concludes.

WWW.DEFYNNE.CO.ZA

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EDCON

Retail Warriors

Ready for the Fight PRODUCTION: Timothy Reeder

Backed by nearly 90 years of experience, Edcon is southern Africaâ&#x20AC;&#x2122;s largest non-food retailer and has grown a footprint to include over 1100 stores across South Africa, with operations also in such key locations as Namibia, Botswana, Zimbabwe and Zambia. It is responding to a tough market environment with a set of key strategies, Timothy Reeder writes. www.enterprise-africa.net / 77

INDUSTRY FOCUS: RETAIL

//

Edcon conducts business under four principal brands: Edgars, Jet, CNA and thank U. These cover the full scope of potential customers, giving Edcon total market coverage: Edgars is aimed at middle to upper-income customers, while Jet sells quality value fashion, home and beauty merchandise and targets the lower to middle-income customers.

CNA, meanwhile, is South Africa’s favourite stationery store, and the perfect complement to a growing, learning nation.

The first Edcon store opened

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its doors to the public at its Johannesburg base in September 1929, a holding which by the late40s had quickly multiplied tenfold.

Commencement of trading in Swaziland, Lesotho and Botswana kickstarted a wave of development for the business, and the intervening years, also marked by numerous successes and acquisitions, have led to Edcon’s standing today as southern Africa’s largest non-food retailer with 1100 stores to its name and 14 million customers having employed its services.

TOUGH TIMES However, none of this has shielded Edcon entirely from the negativity which continues to surround the retail sector. The doom and gloom which so often accompanies any talk of retail business is not idle speculation, sadly - far from it - and it continues to be amply backed by facts. Africa Business Communities reported that South African retail sales for June 2018 grew by just 2.9% year-on-year excluding the effects of inflation, to mark the slowest pace of growth since October 2017. This was

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based on data from the Mastercard SpendingPulse June 2018 report, which provides a macro-economic analysis of retail spending trends in South Africa.

June’s retail sales volume was slightly below the three percent yearon-year gain recorded in May 2018 and signals the third consecutive month that the rate of growth has decelerated in South Africa’s retail sector. Total retail sales growth, including the effects of inflation, grew 5.8 percent year-on-year.

“While real spending in the retail sector remains in positive territory, we did see the rate of growth continue to slow in June. Retail price inflation also ticked up for the first time in a year, after bottoming out in May. This may further weigh on consumers in the coming months

as they already face tight wallets due to weak wage growth and rising unemployment,” says Michael McNamara, Senior Principal, Data and Services at Mastercard.

“Slowing GDP growth in the first quarter, rising fuel prices and a strengthening US dollar also contribute to a challenging macro-economic environment,” McNamara says.

UP TO THE CHALLENGE This has required some creative, innovative thinking on the part of Edcon, and the company has responded quickly and decisively in order to arrest any decline resulting from the widespread pressure currently on the retail sector in southern Africa. One key strategy involved what could appear to be a counterintuitive move, as

Edcon opted to close three of its chains, including Red Square and La Senza lingerie. It was an astute decision, though; by shutting down selected chains the hope is that more customers will be attracted to flagship Edgars stores instead.

As Edcon steels itself for this battle against economic adversity, it is the perfect time for the company to go ‘back-to-basics’ and revert to the original 89-year-old department store format of Edgars. Mike Elliott, CEO, says that in order to change brand perceptions, Edgars will have to change its marketing approach to revitalise the brand and regain fashion credibility.

“A revitalised in-store experience will also centre on elevating store windows with a focus on displaying private brands and enhance story-

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INDUSTRY FOCUS: RETAIL

telling with co-ordinated looks,” Elliot says. “Revised store layouts and product adjacencies facilitate the creation of strong category statements and have been captured in the design of Edgars’ Store of the Future that will form the basis of the new Fourways store to be completed in April 2019.”

The focus on resuscitating its Edgars department stores will equally be matched by a sprucing up of Edcon’s Jet and CNA outlets.

The company’s credit and financial services business, meanwhile, is a vital cog in the wheel it hopes to resurrect, especially coming on the back of a loss of market share over the past 10 years.

The group’s financial services and credit business are key to

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leveraging Edcon’s 14 million loyalty customers, according to Grant Pattison, Edcon’s Chief Executive since February. “We are now focusing on running the business properly,” he set out to Business Report.

“What we are not going to do is to use the credit and financial services business to make Jet, CNA and Edgars better businesses; they are going to think of themselves as cash businesses with a close cousin that gives financial services,” he said, adding that the credit would not be increased to improve sales in the group. Pattison also had encouraging words with regard Edcon’s previously high level of debt, which he pointed out had stabilised and even reduced since these measures had been put in place.

“These days we still have problems, but they are more in the hundred million. What you can conclude is that Edcon is not finally through this, but it is in a better position than it was a few years ago,” was his estimation.

GREEN SHOOTS While Pattison is at pains to make clear that the road ahead may still contain its share of bumps, Edcon is already looking to the many positives it can draw from the current situation.

There was cause for celebration at the company’s event in Claremont Cape Town, as 26 women graduated from the year-long programme as part of the Edgars UNiTE Orange Day Campaign, which seeks to support women survivors of gender-based

EDCON

violence by developing their skills in the world of fashion design and sewing through workshops and accredited training courses.

Elliott commented: “This initiative will result in tangible opportunities for job creation in the local manufacturing market and boost financial independence

// OUR CORE PURPOSE REMAINS THE SAME: TO PROVIDE SELFEXPRESSION FOR ALL SOUTH AFRICANS FOR ALL OCCASIONS //

and enterprise development. Our strategy is to ensure that the women we train are skilled enough to produce garments that can help them generate an income for themselves.”

One thing which has kept Edgars in pole position throughout its illustrious history is its insistence on responding to customers’ wishes, and when they started asking for more options and a bigger choice, all of it under one roof, Edgars sat up and took notice. Already known for its distinctive range of homeware, the brand is now showing up differently and taking it to the next level for décor, foodies, and home enthusiasts.

Elliott says: “Edgars Home has been created for the South African consumer, after all, we’re all decorators and lifestyle enthusiasts who love our homes and love sharing

experiences with friends and family in a space that expresses who we are.

“Our core purpose remains the same: to provide self-expression for all South Africans for all occasions.

This has been interpreted through all aspects of our refreshed home strategy resulting in an entirely different shopping experience.

We also recognise that the South African consumer is under increasing pressure and we strive to offer them fantastic everyday value in price, quality, and fashion, and to delight them with exciting promotions on the products that they love.”

WWW.EDCON.CO.ZA

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SHOPRITE HOLDINGS

Retail Kings Continue to Refine the Art PRODUCTION: William Denstone

The Shoprite Group of Companies is Africa’s largest food retailer, a R145 billion turnover business with a staff complement exceeding 147,000. Shoprite promises to serve local communities with the lowest prices around, a commitment which sees 35 million people shop in its footprint of more than 2800 outlets every day.

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Since 1979 the Shoprite Group has dedicated itself to serving African households by offering food and household items at prices which make them accessible to all. The stunning multiplication of outlets, from an initial eight to 2843 today, is testament to this dedication as well as Shoprite’s unwavering commitment to its 35 million customers.

Shoprite’s products and services range from the basic, to more high-end, food and furniture, and also encompass pharmaceuticals and financial services. The Group sets out to satisfy customers’ needs in a world-class, all-encompassing shopping experience. More than 147,000 staff work to serve customers

across all income levels through various distinctive retail brands, to help this Group of wholly owned subsidiaries remain the largest fast-moving consumer goods retail operation in Africa.

PART OF THE FAMILY The Shoprite Group is the largest private sector employer in South Africa, and a leading employer on the African continent as a whole. It sees its hundreds of thousands of employees as integral to the success it has enjoyed to date, and focuses on attracting, developing and retaining a loyal and committed workforce which is in turn dedicated to the Group’s culture and organisational objectives.

A strong belief in the pillars of

teamwork, career development, promoting from within and job security have laid the foundations of a great place to work. “Shoprite has been very supportive to me,” says one loyal team member. “They regularly call to check on my wellbeing.” “Who could say no to gaining experience at South Africa’s biggest retailer?,” poses another, rhetorically.

The opening of Shoprite’s new store in the Alberton North Shopping Centre in Gauteng created nearly 100 new opportunities for people to get on board a team where the incentives, skills and safe environment are available to allow them to perform and flourish. The store’s total staff complement is 110, which includes 102 youth and 80

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INDUSTRY FOCUS: RETAIL

// EVERYONE IS COMMITTED TO ENSURING THAT EVERY SINGLE CUSTOMER LEAVES OUR STORE FEELING HAPPY // female workers. A similar outcome was also generated at Shoprite’s Kwa Thema Junction and Johannesburg CBD locations, where 94 and 18 posts were created respectively.

Not only does Shoprite want to inspire job creation wherever it can, it also wishes to ensure that its stores are equipped with the latest in technology to facilitate the work

and lives of staff and customers alike.

Customers were thrilled with the re-opening of a bigger and better Checkers Mimosa in Bloemfontein, following a major refurbishment after the store was destroyed by a devastating fire almost a year ago.

The new, state-of-the-art Checkers Mimosa Mall promises greater convenience and an improved customer experience, including wider aisles and the introduction of new in-store services such as coffee and sushi bars. Customers can also save time by making use of the extensive range of services available at the Money Market counter, including payment of municipal or service accounts and buying national lottery, bus, airline or Computicket event tickets.

“With the re-opening of Checkers Mimosa Mall, 36 new jobs were created,” Stefan Gouws, Divisional Manager, Northern Cape and Free State said. “Branch Manager Wouter Heckroodt and his dedicated team of 154 employees are committed to ensuring that every single customer leaves this store feeling happy.”

TACKLING THE PLASTIC PROBLEM Shoprite is also doing its bit to tackle one of the biggest planetary scourges at the moment - plastic waste. The UN Environment Programme estimates that eight million tons of plastic are dumped into the ocean every year, the shocking equivalent of emptying a garbage truck full of plastic every minute. This is having a devastating impact on birds and marine life and compromising the delicate ocean ecosystem.

- We’re simply easy to do business with • • • • • •

Products are designed specifically for industries such as the retail sector Stacking and folding capabilities mean that minimal storage space is required Return transit packaging allows for a significant decrease in transport costs Containers are specifically matched to unique customer requirements Containers are hygienic, easy to clean and cost-effective Mpact Plastic Containers is the leading supplier of plastic containers in the Southern African market • All products may be returned for recycling at our facilities

 Neil Hare Road, Atlantis, 7350  021 573 9400  9 Piet Pretorius Street, Brits, 0250  012 250 9100  www.mpcsa.co.za

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 salesforce@mpcsa.co.za

SHOPRITE HOLDINGS

Shoprite Alberton North

// CHANGING CONSUMER BEHAVIOUR BY REWARDING CUSTOMERS FOR REUSING BAGS IS A CRITICAL PART OF THE RETAILER’S EFFORTS TO REDUCE PLASTIC WASTE // Supermarkets in particular have come under increased pressure to curb their use of plastic as shocking images of littered oceans and beaches become more and more commonplace.

The Shoprite Group, the only national retailer with a verified 100% recycled shopping bag in all its supermarkets, has announced that it will now reward customers for using their newly introduced ‘planet’ bags in both Shoprite and Checkers stores.

Shoprite has garnered a deserved reputation for its green efforts; to date

the Group has recycled 3225 tons of plastic and 26,859 tons of cardboard and white paper.

Shoprite has also succeeded in diverting 103 tons of plastic waste from landfill since February 2017 by using food-safe post-consumer waste.

SA’s largest supermarket chain announced that it will pay customers for reusing its newly introduced recyclable bags, as it joins domestic rivals in efforts to tackle plastic pollution: every time a customer reuses its new 100%-recycled and recyclable plastic bag, which retails

for R3, at Shoprite and Checkers stores, they will receive a 50c on their grocery purchase.

With an estimated two million bags thrown away every minute globally, and with just 5% of people re-using their shopping bags, the Shoprite Group is committed to cleaning up the planet while shaping new consumer behaviour and saving customers money. “Changing consumer behaviour by rewarding customers for reusing bags is a critical part of the retailer’s efforts to reduce plastic waste,” Shoprite said, of the latest in its long line of efforts to secure a cleaner, greener tomorrow.

WWW.SHOPRITE.CO.ZA

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CONSTANTIA INSURANCE

Specialist Cover from the Experts in Care PRODUCTION: Timothy Reeder

When Constantia saw the catastrophic effects that medical negligence claims and unaffordable premiums were having on the quality of the country’s healthcare, it decided to act. CEO Volker von Widdern briefed us on the reception which the first home-grown medical indemnity insurance product has received, and how its specialist focus will allow Constantia to capture the rest of the market.

//

When Enterprise Africa spoke with Constantia CEO Volker von Widdern in March last year, he spoke of the ‘crisis’ which was sweeping through the South African medical profession, and obstetricians in particular, with rocketing medical negligence premiums forcing them out of business in droves.

“This is a crisis. They have trained for 20 years to practice and now they are fearful of being attacked.

Their livelihoods and their personal environments are being turned upside down,” was von Widdern’s

take in March 2017. Coupled with the inescapable prospect of an imminent ‘attack’, it was proving ruinously expensive for doctors to adequately arm themselves against the astronomical claims that were beginning to arise.

“High premiums are driving doctors out of the industry,” underlined von Widdern last year.

“Underlying insurance premiums have gone up very quickly in the last three or four years - a tripling. For certain specialist sections this has made them unaffordable.”

ENTER ETHIQAL Constantia knew it had to react, and came up with a product capable of restoring doctors’ faith in the pursuit to which they have dedicated themselves, sometimes for entire professional lifetimes. EthiQal is a comprehensive Medical Indemnity solution developed for South African Medical Practitioners

by Constantia Insurance, which has more than 60 years of experience serving South Africa.

When Enterprise Africa last spoke to von Widdern, EthiQal was fairly “new to the business,” and performing well.

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INDUSTRY FOCUS: FINANCE

Today, he confirms that this good start has been sustained, and even bettered, since. “The response to EthiQal has been incredibly positive; we have achieved nearly 20% of the market share among private sector specialists in South Africa in the two years since its introduction.”

Until EthiQal’s introduction, very few local insurers extended Professional Indemnity cover on an Occurrence basis to doctors, and even fewer offered cover to those in high-risk practice areas.

This meant they were forced to turn to overseas insurers for protection in malpractice cases.

“We have developed EthiQal according to Such African risk profiles, cutting out the unfair skewing of premiums to certain practice categories - something that happens all the time when working with international risk profiles,” von Widdern informs us.

He also details a further reason -

Constantia CEO Volker von Widdern

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arguably the most pressing - behind EthiQal’s advent: the threat to top-quality care which was increasingly prevalent. “A 2017 survey polled higher risk specialists, and found that they certainly feel aggrieved at the unnecessary exposure to litigation they face,” he outlines, going on to detail the result of this unease.

“As well as talented doctors simply retiring, what we see more of now are both defensive and restrictive medicine - a gynaecologist might only track a pregnancy for the first three months, for instance, or others will be limited to caesareans, for example. There are real outcomes of that nature, and we do not have the surplus of medical talent and resource in South Africa to be able to absorb such a reduction in the amount of care available, and to have any restriction of activity is a massive headache to all.”

OPEN TO ALL Constantia’s Gerald Mathebula was recently keen to clear up a misconception which had begun to circulate regarding EthiQal’s universal availability. “It has come to our attention that there is perception in the market that EthiQal does not provide quotes to doctors who are 60 years and above,” he said. “At EthiQal, we consider cover for all doctors, taking note of their personal circumstances, including their medicolegal history.”

It was a sentiment echoed by von Widdern, who explains more on Constantia’s current real target demographic. “We are open to all classes of doctors, and we now go now right through to age 75, which is obviously way past the normal age of retirement.

“We do, however, have a focus on specialists,” he explains. “We also recognise that in rural areas there are general practitioners who have to do it all: births, operations, orthopaedics; because they are the only people there and are running the clinic; we want to support them as well.

“There are 20,000 other GPs in South Africa, however, who do family work and so forth, and when you consider that context, we have clearly not yet reached an industrial level service model which can properly address that many diverse needs. That’s why we aim to attract the specialists; if we can reach around 3000 specialists and properly look after them, we’ll move along from there.”

The professionals already on board with EthiQal are finding that this historically onerous and potentially ruinous process has been totally overhauled. “Thankfully our claims exposure is still very much in the negotiation and mediation stage,” says von Widdern of how it has been employed to date. “From that point of view, we are at least proving that a better model can work; we have not incurred substantial litigation or been in massively adversarial situations, even though we have over a thousand doctors with us at this stage.

CONSTANTIA INSURANCE

“We are very much engaged in those significant conversations, where people believe there are issues for which the doctor is responsible, but it has not reached the stressful, dramatic scenario of huge litigation. We respect both the doctor and the patient’s rights, which is a key part of how we are trying to change the engagement process.”

Von Widdern is clear on what he wants EthiQal to become. “We would like to be the pre-eminent provider,” he tells us, “which means we need to hold about 50% of the market share.

“I feel we have an excellent chance of getting there within the next two to three years.

NEXT STEPS “We have started a journey, which is nowhere near finished, where we are trying to change the whole engagement model of medical malpractice insurance so that we have a better relationship with all of the key areas of risk in the market.

“This is from the bottom up, so starting at patient engagement and going through consent, to clinical risk to how litigation and mediation works, right to the settlement models that are most fitting to a patient’s needs.

“These are the components of the major risk and cost drivers on the market and we’re making substantial progress on each,” von Widdern espouses. Now that EthiQal is proving so impactful upon its intended recipients, Constantia

// THE RESPONSE TO ETHIQAL HAS BEEN INCREDIBLY POSITIVE; WE HAVE ACHIEVED NEARLY 20% OF THE MARKET SHARE IN THE TWO YEARS SINCE ITS INTRODUCTION //

as a whole can turn its attention to the endeavours which will be next to bring the plaudits. Its historic partnership with EFC was a splendid example, to allow athletes to be provided with medical insurance, at no cost to them, and entirely offset the expense of treating injuries sustained whilst competing at EFC events.

“Until now, in order to compete at EFC it has been a requirement that athletes have private medical aid covering them for professional MMA competition, and EFC has contributed towards the cost of the athlete’s medical aid, but now all this changes with this new partnership,” said EFC president Cairo Howarth. “Constantia Insurance maintains a deep and meaningful relationship with its clients, much like ourselves and our athletes.”

According to von Widdern, there is a wealth of innovation taking place as we speak at Constantia. “We are in the completion phase of the first four products that we wished to develop this year. One is a commercial assets policy for business, and then we have a product tailored for small to medium-sized business called InBiz. Small businesses cannot be expected to predict the kinds of risks which they may encounter as they don’t have professional risk managers on staff, so we have accounted for that by building an innovative ‘any other risk’ feature’ into the offering.

// FROM A CLAIMS POINT OF VIEW WE ARE PROVING THAT A BETTER MODEL CAN WORK // “We have also got our personal lines - a retail product which is completed, and a really interesting approach to the body corporate space. Those four are all in rollout now.

“We have also launched our SME group life product, a very compelling offering and much cheaper than the industry rates as we go about sourcing data about our clients differently, and we are also in the process of developing new funeral products which will be ready in the first quarter of next year.”

Constantia makes insurance personal, but it also introduces valuable, arguably life-saving products with a regularity which makes it impossible to better. We look forward to reporting on another year of innovation and dominance for this great South African insurer.

WWW.CONSTANTIAGROUP.CO.ZA

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NFB FINANCIAL SERVICES

Drawing On A

Wealth of Knowledge PRODUCTION: Timothy Reeder

For NFB Financial Services, everything is centred around clients’ needs, wealth and future financial wellbeing. In the last two years NFB has added another R3 billion to its assets under management to take the total to R28 billion, and continues to grow yet further both organically and through acquisition.

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Since 1985, NFB has set about establishing itself as one of the country’s leading broad-spectrum financial services businesses, specialising in independent financial advice, products and services to high worth individuals, trusts, businesses and institutions. The Group has dealings with all major registered South African banks, as well as a select number

// WE EMBRACE KNOWLEDGE AS A MECHANISM FOR SUSTAINABLE WEALTH // 90 / www.enterprise-africa.net

of preferred international, financial institutions within the banking, insurance, listed equity, government and quasi-government sectors.

The development of the company is outlined by NFB Financial Services Chairman and founding partner Mike Estment, whose outfit was somewhat more modest than the company’s current operation numbering some 150 staff and one of the country’s largest assets under management portfolios.

“There were five of us in the beginning,” he relates, “of which I am unfortunately the only remaining founder from April 1985. The rationale behind the creation was to have something we owned as opposed to something we worked for. We were all into wealth management and we all

came from banking backgrounds, so we wanted to establish something that had a long-term legacy and wealth creation opportunity both for ourselves and others, and it’s worked out rather well.

“It certainly hasn’t happened without headwinds,” counters Estment, “I like to climb mountains and remember the party at the top rather than the very tough bit between base camp and the summit, but it has been challenging.”

PERSONAL, COMPREHENSIVE APPROACH Throughout a lifetime punctuated by frequent success, the NFB Group has prided itself on the direct and personal relationships its clients enjoy with its network of advisors and support staff, which underpins its entire investment

INDUSTRY FOCUS: FINANCE

// OUR PRINCIPAL AIM IS TO PROVIDE BESPOKE PRIVATE WEALTH MANAGEMENT EXPERIENCES, UNPARALLELED LEVELS OF PERSONALISED SERVICE AND EXPERTISE // philosophy. “We embrace knowledge as a mechanism for sustainable wealth,” the Group says.

“Our knowledge is your key to a future of financial peace of mind.”

It follows that NFB is committed to knowing every aspect of each client’s wealth plan and how it has evolved over time, meaning it can then plot its continuing evolution.

“We have been building real relationships by serving the best interests of our high-net-worth clients and their families for more than 30 years,” NFB states. “Our principal aim is to provide bespoke private wealth management experiences, unparalleled levels of personalised service and

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expertise, tailored financial strategies and unique investment solutions and opportunities across a full range of asset classes.”

The entire NFB makeup also numbers Advisor Collaborations and Institutional Wealth, but it is the Group’s Asset Management provision which has proven most fruitful to date, as Estment explains. “NFB’s client base or assets under management is approximately R25 billion. Of that, probably 23 would be individuals and their family trusts and less than 10% is what we would call institutional - such as pension funds and universities.”

Launched in 2001, NFB Asset Management is among South Africa’s

leading independent providers of both local and offshore single- and multi-manager funds. Investors benefit from dynamic asset allocation, considered fund selection, optimal portfolio construction and transparent reporting expertise.

At the core of the service are longterm investors who believe in making active decisions at the asset allocation level, which are the implemented using passive instruments in single manager portfolios.

RECOGNITION OF EXCELLENCE It is a holistic approach to asset management and one which has brought the NFB Group some notable success. Recognition of the NFB Ci Cautious Fund of Funds was shown in its receipt of two accolades at the prestigious 2017 Raging Bull Awards, widely known as the Oscars of the investment management industry.

The Awards were originally established to honour funds and

NFB FINANCIAL SERVICES

fund managers that consistently earn outstanding returns for South African retail investors, and for the five-year period to the end of December 2016 took home some significant awards.

Fund Manager, Paul Marais says NFB Asset Managers’ investment philosophy is based on their key beliefs: “First, that asset allocation drives a significant portion of overall investment returns. We also believe that markets are inefficient and that they swing between periods of over- and under-valuation.

“We also believe we are able to exploit these circumstances to the benefit of investors invested in the portfolios we manage. We do not believe in optimisation, back-testing or forecasting, as these are all materially flawed processes in one way or another.”

These prizes underline the longterm philosophy and robust investment processes which NFB has developed over the last ten years, and highlights the importance of the investment management team responsible for guiding these.

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WHERE NEXT? South Africa’s is a notoriously unpredictable economy, which makes preparation more vital than ever. Mike Estment has long been an advocate of artificial intelligence (AI) and roboadvisors, as two important means of further improving NFB’s operational methods. “Robo-advising remains a

// WE ARE SLICK IN OUR PROCESSES BUT OLD-FASHIONED IN TERMS OF CLIENT CARE AND THAT ALL COMES BACK TO US BEING SAFE AND MAKING PEOPLE FEEL SAFE //

very light component of what we do, while AI is a critical aspect and in five years’ time will be the only ticket to the game,” he states.

“Robo-advising is still in its early days because so many clients still need face time. We are slick in our processes but old-fashioned in terms of client care and that all comes back to us being safe and making people feel safe.”

In an economic climate which remains ever unclear, Paul Jennings, Private Wealth Manager of the NFB Group, has identified the scope for progress during such uncertain times in South Africa, with NFB itself perfectly placed to spark the required change.

“There is a need and opportunity, both locally and internationally, for radical, economic transformation,” he says.

“South Africa can be at the forefront of change. We are a young nation, at the

tip of this vast continent with enormous potential both here and the rest of Africa, and we all have a role to play in influencing a better South Africa and a better world.”

A combination of not losing sight of the values which has served them so well to date, while embracing the developments occurring within the industry, will keep NFB growing and succeeding. “We are engaged consistently in targeting acquisitions,” Estment tells us. “Financial services is a key asset of any economy and it is scalable. We continue as entrepreneurs to deliver for our clients and that is service and advice that we like to believe is without peer.”

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DEVMARK PROPERTY GROUP

Buoyant Devmark Celebrates Flurry of International Awards PRODUCTION: Manelesi Dumasi

Currently developing a range of top-quality property including the Klein Dâ&#x20AC;&#x2122;aria Private Residential Estate, The Plettenberg Manor, The Galleria in Tyger Valley, Langebaarn Manor and many more, Devmark Property Group is celebrating all that has been achieved over the past 29 years. Founder and CEO, Hein Ehlers talks to Enterprise Africa about how choosing to be brave rather than scared has helped the company come through the tough times in South Africa. www.enterprise-africa.net / 95

INDUSTRY FOCUS: PROPERTY

//

2018 has been an extremely positive year for leading property developer, Devmark Property Group. In October, the Cape Town-based company was lauded at the African Property Awards, coming away with three trophies: Best Residential Development and Best Development Marketing for The Plettenberg Manor, as well as Best Single Unit Residential Development for Klein D’Aria Private Estate.

For 29 years, Devmark has been developing fantastic properties around the Western Cape and, thanks to an unwavering culture of excellence, the company is today regarded as one of the country’s industry-leaders.

Founder and CEO, Hein Ehlers was also recognised for his contribution to the industry, being selected as Top CEO of the Year for 2018 by the International

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Association of Top Professionals (IAOTP).

These awards capped off an amazing year for the company and Ehlers tells Enterprise Africa that there is feeling of pride at Devmark.

“We’re absolutely thrilled with our three African Property Awards. It confirms our maxim of always striving for excellence in every aspect of our developments. Our success rests on the shared philosophy of providing an exceptional and comprehensive service to all our clients.

“Our people work extremely hard conceptualising these developments and there is a lot of effort that goes into making sure the development makes sense in terms of flow and layout. Then you have to think about the modelling of it and the marketing – everything is done with the highest level of professionalism. For me, there’s a great

sense of gratitude that all of the energy and effort has been acknowledged.

Internally, the people who have put the hard yards into making this work are feeling very positive.”

Regarding Ehlers personal achievement, President of IAOTP Stephanie Cirami said the choice was not hard. “Choosing Ehlers for this award was an easy decision for our panel to make. He is a brilliant and talented leader in property development and financial management. He was exactly what we were looking for and we know we will be seeing more outstanding things from this man.”

BUSY BREAKING GROUND Some of Devmark’s most notable recent projects include residential developments Fairhaven, Heerenzicht, Oak Park, Glen Beach Terraces, Whale

DEVMARK PROPERTY GROUP

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Rock, Montego Bay and many more. The company has also developed some of the country’s finest retirement villages at Cle Du Cap, Legato, Villa Cortona, La Vie Est Belle and Onrus Manor to name just a few.

Right now, Devmark is working on impressive range of projects to add to these lists including a large mixed-use space north of Cape Town and a number of significant retirement projects.

The mixed-use development, in

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Tyger Valley, will consist of commercial, residential, and retail space and is a project that Ehlers expects to keep the company busy for the next decade.

“It’s land that belonged to the City of Cape Town. Many years ago, there was a proposal call and we were shortlisted and eventually awarded the contract. We entered into an agreement with the City to buy the land from them and we subsequently rezoned everything, and we are just about

// WITH ITS COASTAL LOCATION AND EXCELLENT SECURITY, PLETTENBERG MANOR WILL OFFER RESIDENTS DIRECT ACCESS TO A PRIVATE BEACH, BEAUTIFUL HIKING TRAILS, BIRD HIDES FOR BIRDWATCHERS, AND BOWLING GREENS – ALL ON THE ESTATE //

ready to begin development.

“It’s a mixed-use scheme and central to it will be an athletics stadium and a velodrome. The velodrome has been converted into an international event venue in partnership with Big Concerts. They are going to remodel the velodrome into a multi-use venue and they will also manage and operate it, bringing many concerts and much activity to the Western Cape. At capacity, it will hold around 14,000 people.

“There will also be a substantial residential component of 500-700 units. We will have a lot of commercial office space, a medical facility, a fourstar business class hotel and a retail component. The retail component will take up around 12,000m2 and that will be added to existing retail units on site, taking the total retail space to 18,000m2.”

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Compton Streetscape

This project, estimated to be worth R6.2 billion, will be rolled out in first quarter of 2019 when the residential component will be launched and work will begin on the first of 7500m2 A-grade offices, the 11,000m2 hotel, and the 6500m2 medical centre.

Further east, in Plettenberg Bay, which Ehlers describes as his second home, Devmark has broken ground on the second phase at its exclusive retirement resort, the award-winning Plettenberg Manor.

“It is one of the prime coastal resorts of South Africa. With its coastal location and excellent security, Plettenberg Manor will offer residents direct access to a private beach, beautiful hiking trails, bird hides for birdwatchers, and bowling greens – all on the estate. A shuttle service will make getting around easy and convenient. Not only does this development promise to offer an excellent return on investment, but also the perfect lifestyle.”

Retirement property is becoming an increasingly important part of the Devmark business and its eight completed retirement villages have

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Compton Lounge

been extremely well-received by the market. Ehlers confirms that there are more to come.

“We are completing another retirement village in Somerset West, and we are busy with Langebaarn Manor which is around 180 units,” he says.

“We also have projects in the northern and eastern regions of South Africa.

Our pipeline for retirement property is probably close to around 1000 units right now – it’s one of our key areas of expertise, where we are one of the leading developers in the country, certainly in the Western Cape.”

In typically innovative fashion, after getting into the retirement property industry many years ago, Devmark is now finding new opportunities in the sector. In the future, the company will look to develop healthcare facilities on or close to its retirement sites to bring added value to its property. The plan is to develop and open seven hospitals over the next few years, as Ehlers explains.

“We have teamed up with Samaritan Health and we will fulfil the development role for them while retaining the property. We have negotiated a

transaction where we will have a minority stake in the Samaritan Health business. This was born out of the work we have done with retirement villages as the care facilities and assisted care facilities have become a big part of what we do. We hope to roll out seven over the next three years and the first one will probably be in Malmesbury where we will open a 120 bed sub-acute hospital.”

All of the company’s activity in this sphere will come under the new division, Devmark Health Holdings.

DEVMARK INTERNATIONAL? Work with care facilities and assisted care facilities across Devmark’s retirement villages in South Africa has spurred the company to look further afield for opportunities. In South Africa, most companies that reach a certain size and capacity will quickly look to the continent for expansion opportunities but Ehlers and Devmark have no interest in growing into Africa. Rather, prospects in Europe are where the company sees potential.

“In the UK, we are about to complete our first transaction where we

DEVMARK PROPERTY GROUP

Compton Braai

are acquiring a care facility,” says Ehlers.

“We aim to set up a care management business where we own the properties across the UK and the Netherlands.

We are contracting some of the largest operators in these markets – we are not really interested in trying to change the daily operation of the businesses.

“We have conducted studies in South Africa and the Netherlands, and we are finalising the same study in the UK, to understand that there are significant numbers of people who are part of the ‘baby boomer’ generation who will all retire in the next 10-15 years. We believe that quite a number of those people will end up in care and assisted care facilities – the Netherlands has an estimated 2.4 million and, we are still waiting for the research, but we believe the UK has between eight and 10 million, so there is a big market there.

“We first want to acquire enough facilities to have a substantial business and when we have a clear understanding, we want to start developing our own facilities. We are not rushing – it will take at least two years to build a thorough understanding. It’s

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INDUSTRY FOCUS: PROPERTY

difficult enough trying to develop in Johannesburg when you are based in Cape Town so we certainly will not be rushing,” he adds.

Just last year, various market research and businesses development organisations recommended that successful SA companies look beyond the country’s borders for significant growth opportunities in order to mitigate against the weak economic backdrop in South Africa. Lacking confidence, corruption, political uncertainty and shortages of water, as well as massive unemployment, continue to drive negative feeling in the economy, and business over a range of markets could be the perfect extenuation.

However, despite economic conditions, Ehlers remains positive about the future in South Africa.

“I have the philosophy of ‘when everybody’s scared you become brave’,” he says. “There are always opportunities.

When people start sitting on their hands land becomes cheaper and competition becomes less. Without being overoptimistic, there is still enough opportunity and we can see that through the developments we are rolling out now and the pipeline that we have.

“Property projects take years to get out of the ground so if you don’t start now, by the time there is an upturn, you’ll be caught behind.

“We have gone through our challenges politically but we have a good strong president now and I am

Hein Ehlers

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DEVMARK PROPERTY GROUP

// I HAVE THE PHILOSOPHY OF ‘WHEN EVERYBODY’S SCARED YOU BECOME BRAVE’.

THERE ARE ALWAYS OPPORTUNITIES. WHEN PEOPLE START SITTING ON THEIR HANDS LAND BECOMES CHEAPER AND COMPETITION BECOMES LESS //

the demand, so we identified that as an opportunity and it took us quite a long time to get the right land, and even longer to get it rezoned. It is our first project in affordable housing, but we are hoping to get more projects online soon.”

The project is located in Belville, just north of Cape Town and so far Devmark has completed 250 units with the next 460 set to be started imminently. “It’s a combination of rental stock, social housing and open market stock,” says Ehlers.

It’s a market where the company can make a real difference and one where the South African government is keen to offer support. “The government does make land available for projects like this and we believe we can make a significant impact in making stock available, assisting government and making rental property available,” says Ehlers.

“The challenge is getting the rights” he admits, “it is incredibly bureaucratic and takes an extraordinary amount of time, especially in the Western Cape, and especially in the Metropolitan area.

We have a DA-led government and they are very scared to make any mistakes as they are seen as the best-run metro in South Africa. It creates a massive amount of red-tape and that means everything takes a massive amount of time. This is not unique to our country, it is a universal problem.

“The affordable housing shortage will not slow because of the recession, people will not stop retiring because of recession so we are blessed in the sense that we have very large projects that have all been de-risked. They will keep us busy for quite some time and it’s a function of looking for opportunities in niche markets.”

confident that he will pull our economy out of the trouble it was left in – it’s like taking a bankrupt business and trying to resuscitate it, it’s a mammoth task he has on his hands, it will take time, but all the signs are positive.”

DIVERSIFICATION Traditionally, Devmark has developed property for the top end of the market.

Properties in its residential estates and retirement villages can sell for millions of Rand. But Ehlers says that one of the company’s key strengths is being able to spot gaps in the market. So, diversifying slightly from its core at the high-end of the market, Devmark recently took the decision to develop in the affordable space. Its project in Cape Town marks the company’s first venture into affordable housing space and Ehlers says, while the process can be difficult, it’s a market that offers significant opportunity.

“What we have done successfully in the past is identify a gap in the market where believe there is long-term opportunity,” he says. “The affordable housing market in South Africa has a shortage of about two million units.

All of the developers collectively in South Africa could never supply all of

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// WE DID A RESIDENTIAL DEVELOPMENT ON THE ATLANTIC COAST CALLED CLIFTON TERRACES IN A PRIME RESIDENTIAL AREA. BACK THEN, WE WERE SELLING THOSE UNITS FOR R1.5 MILLION WHEREAS TODAY THEY ARE PROBABLY WORTH R40 MILLION //

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29 YEARS AND COUNTING The special work completed, and underway, by Devmark is in keeping with everything the company has done in the past. Always dedicated to exceptional and comprehensive service for clients, Devmark has become known for its expertise since Ehlers established the company in 1989. He explains that, in the early days, Devmark was rooted in the development of retail property.

“I was with the Pepkor Group where I was part of the executive group. I identified an opportunity in the establishment and development of convenient shopping centres in the northern areas of Cape Town.

I specifically started the company with the sole purpose of developing convenience retail shopping centres.”

In the beginning, the company was called Devprop Projects and the name Devmark was used for marketing the business with residential property. It eventually became so dominant in the industry that the company adopted the name Devmark in 1995.

“When we really got going in the residential space was just before the first democratic elections and people didn’t really know where things would go. You had to be brave or scared so we decided to be brave and it worked out pretty well.

“Two flagship developments for us in the early stages were a retirement village called Cle Du Cap in Cape Town’s southern suburbs, and we did a residential development on the Atlantic coast called Clifton Terraces in

DEVMARK PROPERTY GROUP

We are proud to be a supplier to Devmark Group a prime residential area. Back then, we were selling those units for R1.5 million whereas today they are probably worth R40 million.”

After almost three decades in business, Devmark now employs a highly skilled workforce of almost 100 people and, when the project portfolio is big, the company engages hundreds of subcontractors providing opportunities for many different local businesses.

DEVELOPING FOR THE FUTURE Right now, the major projects that will keep Devmark busy, alongside its expansion in Europe, are the acclaimed Klein D’aria Private Residential Estate – a 22 luxury home development in Durbanville – and various retirement villages across the country.

“Klein D’aria is very interesting as it’s on a wine estate and that is very unique. It’s a wine estate that sits within the urban area – you cross the street from the wine estate and you’re in a residential area,” says Ehlers.

“We are planning a retirement village in Constantia – we have the rights under appeal with the Cape metro. The Langebaarn Manor retirement village will be completed in 2019, and we also have one in the northern part of the country in an area called White River. There, we are developing a retirement village with a step-down sub-acute hospital on the site. The Galleria development in Tyger Valley will also take up a lot of our focus as we begin with the revamp of the velodrome and the hotel and offices. There are a lot of things that we will be looking to get off the ground in the first part of the new year.”

And after 29 years with the business, and a history before Devmark in the corporate world, Ehlers remains exhilarated and energised by the opportunities in the industry. Asked about a succession plan for Devmark he says

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that any change is long way off, but the company is perfectly positioned for any transition.

“Two of my sons work in the business and both of my daughters as well. We have other very talented people in the business who doing extremely well so it is not definitely going to be passed to my family. At this stage, it could be anybody.

“We have a young management team who are extremely wellqualified academically and they have now gained a lot of experience.

Certainly, they all have the ability to take the business to the next level – there’s no doubt about that,” he says.

Now is an exciting time for the company, and as it approaches its 30th birthday, it has never been stronger. Regarded among the Western Cape’s premier developers,

continually growing its influence across South Africa, building an international business, diversifying into new sectors – and doing all of these things with quality in mind – award-winning Devmark is the perfect example to follow for those looking for inspiration.

“By drawing upon the group’s collective knowledge and expertise, we hope that Devmark will continue to grow and prosper,” Ehlers concludes.

WWW.DEVMARK.CO.ZA

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THE GONDWANA COLLECTION

Sustainable & Natural Growth Drives Namibia’s Gondwana PRODUCTION: Karl Pietersen

“Welcome to Gondwana. We greet you with a smile and a warm handshake” - this is the mantra of Namibia’s leading hospitality business and the message that was extended to Gys Joubert when he took over as the company’s Managing Director last year. He talks to Enterprise Africa about plans underway to grow Gondwana and build brand Namibia.

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INDUSTRY FOCUS: PROPERTY

//

In January 2017, leading Namibian hospitality business Gondwana Collection welcomed a new Managing Director – Gys Joubert. The former-attorney and finance industry expert took the reins from founder and industry veteran, Manni Goldbeck, who had been running Gondwana for more than two decades. Goldbeck remains with the business as Brand and Marketing Director and continues to support Joubert, who served on Gondwana’s Board of Directors since 2016.

Since taking control, Joubert has set about growing the business and securing Gondwana’s industryleading position in Namibia’s hospitality sector. Today, the company boasts 18 properties across Namibia including lodges, hotels, safaris, and adventure offerings.

The Desert Grace Bar

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Just last month, Gondwana’s newest creation was launched – The Desert Grace, a beautiful lodge in the country’s remote Namib Desert.

“The Desert Grace opened on November 1st,” Joubert tells Enterprise Africa. “It was a very hectic time but we were ready. As the first guests walked in the front door, the mop and the bucket left the back door.”

Asked why Gondwana chose this location for its new lodge, especially considering the company already has a strong presence in the region, Joubert explains that the unique sand dunes and the wonders of the Namib Desert remain a major draw for tourists.

“The highlights of Namibian tourism are still around Sossusvlei and the dunes. Most countries in southern Africa have a good safari and wildlife offering, including Namibia, but no

one else has the desert and dunes that we have - the dune belt remains a big highlight. We have more than one lodge there already and we decided to construct this new lodge on the same property but keeping it around eight kilometres from the existing lodge.

It’s very exclusive and is a high-end product for the upper-end of the market. We are very proud of what we offer there and we are convinced that it will represent very good value for money.”

Part of Gondwana’s ‘Premium Collection’, the Desert Grace has twenty spacious double rooms and four family units, each with its own plunge pool. Construction of the lodge represents the company’s core values – sustainability, strong ethics and a commitment to nature. The main building is partly constructed

THE GONDWANA COLLECTION

from sandbags, filled on site, offering excellent sound and thermal insulation qualities. The lodge also has its own water recycling plant with energy supply largely catered to by solar sources.

“The values on which the company was born are all about nature,” explains Joubert, who describes himself as a passionate Namibian with a special love for his country, its environment and people.

“The first slogan of the business was ‘give back to nature what belongs to nature’. It was never a company, from day one until today, which is bottom line obsessed. The ideals of the company are about being a force for good – they were firmly established from day one and those foundations in the Fish River Canyon remain strong today.”

BORN IN THE CANYON Gondwana was established in 1996 after Manni Goldbeck and founding partners, identified an opportunity to provide for tourists visiting Namibia’s famous Fish River Canyon. The largest canyon in Africa, a Namibian national monument, and one of the most visited attractions in the country, the canyon was previously serviced by lodges and hotels further north.

“Back then, tourists would come and stay in Keetmanshoop as it was the closest town to the Fish River Canyon. They would drive down to see the canyon and then drive back and stay in Keetmanshoop as there were no facilities any closer. Manni saw the opportunity and realised if he could offer lodge accommodation closer to the canyon, he would be able to capture the market. Commercially, that is where

the group started,” details Joubert.

“Importantly, the dream and vision on which the company was founded was always about sustainability and the triple bottom line, and while these are now popular concepts, no one was talking about this back in 1996.”

In the past 22 years, Gondwana has grown to employ more than 940 people and its reach now covers almost the entire 826,000km2 of Namibia.

“If you look at the highlights of Namibia, we can offer everything on the map. There are only one or two small gaps that we are open to

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exploring but, in general, we are wellpositioned,” says Joubert.

Just before talking to Enterprise Africa, Joubert had been travelling around Gondwana sites in Namibia’s south. He explains that the company’s influence on the region over the years has been extremely important.

“We have the Gondwana Canyon Park to the south and I spent some time across our three lodges there.

It’s a big piece of desert that has been acquired over many years and rehabilitated in terms of wildlife, opening up fences, rewilding it, and re-stocking it with game. I spent a lot of time riding through the park on my mountain bike and you see the results of many years of hard work, how the wildlife has re-established itself and it’s wonderful to see.”

ALWAYS BUILDING In order to spread its roots deeper through Namibia, and further afield, Joubert explains more about plans for two new lodges in 2019 – one at Etosha National Park and one across the border in Zimbabwe.

The Desert Grace Bar

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“At the north eastern corner of Etosha, there is an access gate called the King Nehale Gate and it is situated on community land – it is not privately or commercially owned. Through a tender process, we have acquired the rights to construct a lodge there in conjunction with the community,” he says. “The community is organised around a conservancy and we have contracted with the conservancy to construct a lodge just outside the King

The Desert Grace Restaurant

Nehale Gate. We have just established the site and the project is kicking off.

The main construction will start early next year and contractors are on site.

It’s a very exciting project but it is daunting as we don’t own the land and it is a huge capital outlay of around N$75 million.”

The 40-room lodge will be surrounded by the communal areas of the Oshikoto, Oshana, Ohangwena and Omusati Regions and will provide

THE GONDWANA COLLECTION

guests with unrivalled access to the Etosha National Park – one of Africa’s leading conservation areas.

In Zimbabwe, the company is looking to attract travellers from different backgrounds, and will use Victoria Falls as the main lure.

“We are making very good progress with our registrations and setting up the company structure in Zimbabwe,” says Joubert. “Our design team is far-advanced and is now working on costings. We recently had a team visit Zimbabwe to work on the technicalities and pricings. It will certainly take around six more months before we break ground on that site, but we are making very good progress. We already own the land on the site so it is very exciting but it is also daunting as it is our first venture across the border, so we are putting in a lot of time and effort to understand the risks and opportunities.”

Earlier in 2018, Africa Albida Tourism – a leading tourism industry figure – found that tourism surrounding Victoria Falls was up on

The Desert Grace Bedroom

the previous year and showing no signs of abating. It is this demand that drove Gondwana to expanding into Zimbabwe.

“Firstly, Victoria Falls remains one of the biggest highlights in Southern Africa. It is one of the major entry and exit points in sub-Saharan Africa and is classed as one of the Seven Natural Wonders of the World – it is magnificent,” says Joubert.

“Secondly, we have invested a lot into the Eastern Zambezi region of Namibia which connects easily to Victoria Falls – it’s only 120km from the Namibian border to Victoria Falls.

We have invested in the corridor towards the Falls.

“Thirdly, the market profile in Victoria Falls is very different to the profile in Namibia. Namibia is very much German speaking but at Victoria Falls, there is much more North America and UK-based tourism.

We hope to develop the transfer from Victoria Falls to our properties in the Eastern Zambezi and from there further into Namibia.”

Traditionally, Gondwana has

// WE HOPE TO DEVELOP THE TRANSFER FROM VICTORIA FALLS TO OUR PROPERTIES IN THE EASTERN ZAMBEZI AND FROM THERE FURTHER INTO NAMIBIA // targeted the mid-market with these new properties and other new products like Camping2Go or the Namushasha River Villa, the company will be able to target different parts of the market attracting more topend clients and also those in the lower-end of the sector.

“We target the high-end of the market with some very luxurious properties and we also cater to the lower-end of the market through our adventure offerings, so we are definitely expanding. However, our bread and butter remains the midmarket, with a good value for money offering,” says Joubert.

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The Desert Grace Bar

BRAND NAMIBIA The future looks bright for Gondwana, and that is because the future looks bright for Namibia. Having averaged GDP growth of 4.29% since independence in 1990, the country’s economy, and the economy of the wider-southern African region, has hit a hurdle in 2018. But the IMF expects activity to pick up again in 2019.

Joubert believes tourism can be one of the drivers of improvement.

“In general, the economy is down and with that comes negative sentiment which is not good. However, we have two and half million people in this vast and beautiful country. We passionately believe that tourism can drastically and totally change the direction of our country. It can eradicate all forms of poverty in a sustainable manner.

By caring for our environment, assets and people, tourism can change our future. So, we are very optimistic and very passionate about the impact of the industry in Namibia.”

In 2017, travel and tourism contributed a total of 13.8% of Namibia’s GDP and around 98,000 jobs (according

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The Desert Grace Restaurant

to World Travel & Tourism Council). All of these figures are expected to increase and Joubert says that all players must push in the same direction.

“In terms of sustainability and in terms of making sure that tourism is inclusive – the only way it can be sustainable – we are very proud to play our part and bring the benefits of tourism to the communities of Namibia.

“Gondwana will always play its part but we need all role players involved – government and private sector – we all need to ensure we grow with the market.”

To further expand the business, and develop Namibian tourism, Gondwana will look to get involved in other corners of the industry in the future.

“We are looking at vertical integration with the value chain.

Historically, we only used to provide accommodation whereas now we have our own car rental company that we are growing. We want to become a one-stop-shop when servicing guests in Namibia. We will also be expanding our market in the upper and lower ends, and we are also looking at acquisition

// WE HAVE TWO AND A HALF MILLION PEOPLE IN THIS VAST AND BEAUTIFUL COUNTRY. WE PASSIONATELY BELIEVE THAT TOURISM CAN DRASTICALLY AND TOTALLY CHANGE THE DIRECTION OF OUR COUNTRY // opportunities to sustainably expand our reach,” details Joubert.

And, even with all the expansion underway, Gondwana will never forget about its home market – domestic Namibian tourists.

“Namibian tourism is very important to us and to back that up we have a Gondwana Card where we offer all holders 50% off all our products. For cardholders in the SADC region, they get 40% off to really encourage our

THE GONDWANA COLLECTION

The Desert Grace Bedroom

neighbours to make sure they see what this country has to offer. Our source market is still European-based, and we are very much focussed on families. In some of our more niche lodges, it is a bit more difficult but generally we focus on family rooms. We see it as a growth opportunity because more and more people are travelling with their children.”

When Gys Joubert took on his role in 2017, he said he looked forward to finding his own individual path in the business and, to date, he is doing just that. He is of course helped greatly by

The Desert Grace Shop

the magnificent attractions that are offered up by his country. But growing a business that is already very strong in its industry is no easy task. Is Joubert enjoying his work?

“We like to think Brand Namibia is very healthy. People love to visit this country and we want to protect that.

We always say that Brand Namibia is more important than Brand Gondwana.

We are in a wonderful industry, that creates quality employment in rural Namibia, and has major potential to shape the future of our country.

“We do have our challenges and it is easy to feel negative, but all the challenges can be overcome.

The positives vastly outweigh the negatives for us and the potential is so enormous,” he concludes.

WWW.GONDWANA-COLLECTION.COM

In January 2018, reports surfaced accusing US President Donald Trump of naming various African countries ‘shitholes’. This followed his mispronunciation of Namibia in September 2017 when he called the country ‘Nambia’ during an important press conference.

Gondwana took to YouTube to respond to the President’s comments, creating a video that shows Namibia’s awe-inspiring scenery and mocking Trump for his seemingly total lack of understanding of the region.

Regarded as a marketing success, the tongue in cheek video, along with others joking about Trump’s mishap, have been viewed more than a million times.

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Grey iron treatment - ready for the DISA

BESAANS

Fresh Investment

Heating Up Besaans PRODUCTION: David Napier

Built on foundations of quality and strength, Besaans is a business looking to bring manufacturing back to South Africa. After years of watching buyers head East for their cast iron products, Besaans is slowly clawing market share back. CEO Stefan du Toit talks to Enterprise Africa about strategy and upcoming investments that will position the company at the industry’s forefront.

//

Localisation is one of the most important tools for driving industrial development in South Africa. It will contribute to growth of the economy and manufacturing sector and will undoubtedly create jobs. That is the message coming from Trade and Industry Minister, Rob Davies, and also Joanmariae Louise Fubbs, Chairperson

of the Portfolio Committee on Trade and Industry.

Talking at the Proudly South African Buy Local Summit in Johannesburg last year, Davies said that government policy which ensures state-owned companies buy local is working. “If government decides to source products that are locally made, it will support the enterprises that

are producing those products in our own economy, while creating and supporting jobs,” he said.

“The reconstruction of South Africa’s industrial capacity is essential, and manufacturing has been identified as the critical instrument to drive the industrial policy action plan,” said Fubbs following President Ramaphosa’s State of the Nation Address.

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INDUSTRY FOCUS: MANUFACTURING

“We are going to persuade the private sector that it is in their own interest to increase their profits and to actually pursue our own retailers and manufacturers and buy local,” she added.

And the private sector is listening.

Since 1946, Besaans has been manufacturing locally from its foundry in Pretoria. Founded by Henri Besaans and Charl du Plessis after the conclusion of World War II, the business has strong and deep South African roots.

But, after successfully serving South African industry for decades, many customers were drawn to the East and basement pricing offered by China. Despite offering products, made to international quality standards, the business was losing out. It was the same for many foundry companies in South Africa. But Besaans decided to act.

CEO Stefan du Toit tells Enterprise Africa that, by partnering with government and investing in process development and the

CNC Tool making in progress

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facilities at its foundry, Besaans is starting to bring business back to South Africa, championing locallyproduced components.

“The things that we have been working on include actively targeting movement into the manufacture of components that have left the country and people are importing from China.

We want to get some of that work back into the country and we have been reasonably successful,” explains du Toit.

“For many years, these products were manufactured in South Africa but after the big push from China in 2008/09, a lot of customers moved the sourcing to the East because the products were so cheap. People are now realising that working capital is expensive, lead times are long, China’s inflation is creeping up; so we are working with various companies to find solutions that work for everyone so that products can be localised again.

We’re not always successful but 85%

// THERE WILL BE BIG REDUCTIONS IN EMISSIONS, WATER USAGE AND A 30% REDUCTION IN ELECTRICITY USAGE // of the products and customers that we have targeted have been positive.”

Importantly, Besaans was acquired from Saint-Gobain by the Kutana Group in 2017. A black woman-owned, Pan-African investment group focussed on building sustainable growth through responsible investments and a commitment to the communities we work with and support. Kutana’s portfolio spans various industries including media, property, resources, financial services and agriculture. The acquisition of Besaans from SaintGobain marked Kutana’s second move

BESAANS

into the steel and construction sector.

“They recently started to look at investing in the metals and engineering space which is something new for them,” details du Toit. “Being a cyclical industry, and with South Africa not in a particularly good space with poor GDP growth and a struggling metals sector, they thought it was a good strategy to invest in that side of the business and ride out the cycle so when the economy turns it will stand as a good investment.”

He explains that the Kutana model is to invest in companies and then allow them to be run by the existing management who understands the industry. This has allowed for the development of a new strategy that fits Besaans perfectly.

“We developed the first-year strategy together which was focussed around consolidation of existing and new markets and analysis of investment for the future. We created the foundations for expansion of our markets.

“We have also looked at how we should invest in the business, not in terms of capacity, but with manufacturing efficiencies in mind.

We are currently working on obtaining funding to replace our melting furnaces as well as our metal pouring technology. These will be latest bestpractice, energy-efficient types of technology that will create a significant reduction in our energy costs and improve general manufacturing efficiencies; especially in quality. It will also help with improving our metal yields and we believe will position us with a better cost-base so that we can be more aggressive and localise more products from the East.”

If the company is successful in gaining this investment, du Toit expects the new technology to be commissioned in 12 months’ time.

“We are now starting to work on the second phase of the strategy which we will focus on the next three years.

“The big energy user in a foundry is the melting unit so we are looking

// WE ARE CURRENTLY WORKING ON OBTAINING FUNDING TO REPLACE OUR MELTING FURNACES AS WELL AS OUR METAL POURING TECHNOLOGY // at replacing them and that will be a massive saving for cost, efficiency and energy. We will also change the way we pour our metal, opting for an automatic pouring machine.

These systems use cameras and other technology to accurately control the pouring of metal into the moulds. Both of these investments will also have a positive impact on safety and the environment. We expect reductions in emissions, water usage and a 30% reduction in electricity usage.”

Besaans has engaged government to ensure the investments it makes are sustainable and provide a return.

“We are working with the Department of Trade and Industry (DTI), the Industrial Development Corporation (IDC) and the Technology Localisation Implementation Unit (TLIU) which is a localisation initiative.

There’s a very strong drive with regards to localising and job creation and we are using the vehicles that are available.

There’s also private finance that the company will raise. It’s a team effort between industry and government,” says du Toit.

He is positive about the future for the industry and the company and suggests that those that invest in modern

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INDUSTRY FOCUS: MANUFACTURING

technology are those that will thrive.

“There has been a decline in the foundry industry. Although most of the foundries that have closed in the past 10 years have been more in the jobbing space, the pressure on production foundries like we are is very real as these foundries need consistent volumes and is where China has been very active,” du Toit explains. “We’ve seen a consolidation of capacity, so you would expect the foundries to be

Stefan du Toit - CEO

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in a better space than they were 10 years ago, but the whole industry is still in distress. To turn it around, foundries have to invest in technologies that make manufacturing more efficient and they have to use the programmes that the government makes available to ensure capacity is full. If we manage to convince the private sector to buy local, we will have a better prospect going forward. All the signs are there that China will become more expensive

and there is a strong desire for shorter lead times. Looking forward, there are still opportunities and the government is creating many more opportunities by designating certain components as local content so that state-owned enterprises have to buy from local manufacturers and not import.”

For Besaans, this is most welcome. Its products are utilised across a range of industry sectors including mining, rail, automotive, construction, power generation, engineering and many more.

“We are a component manufacturer for various OEMs,” details du Toit. “Typically, we produce components for rail rolling stock and railway infrastructure. In mining, we supply components that are used in roof support systems. In construction, we supply components that are used in scaffolding and reinforcing systems.

We also have an extensive range of cookware including traditional 3-legged cast iron potjies as well as cast iron casseroles and pans which we sell both local and international under our Best Duty and Chef Supreme brands.”

One arm of the manufacturing industry in South Africa where the prospect of losing business to the international supply chains is the automotive sector. South Africa is a major automotive manufacturer and the export of vehicles assembled in the country drives foreign exchange and investment. Besaans sees opportunities for expansion in this sector and du Toit says that the company is looking into components that could be manufactured at the foundry in Pretoria.

“It’s something that we will be investigating but not quite yet. To supply into the automotive industry we need to have our investments in place. The requirements - in terms of manufacturing cost, quality and risk - mean we will have to ensure we have the latest manufacturing technology installed.”

BESAANS

Management Team

// FOUNDRIES HAVE TO INVEST IN TECHNOLOGIES THAT MAKE MANUFACTURING MORE EFFICIENT AND THEY HAVE TO USE THE PROGRAMMES THAT THE GOVERNMENT MAKES AVAILABLE TO ENSURE CAPACITY IS FULL // This is a business with an exciting path ahead of it. Solidly positioned to take advantage of the country’s drive for locally produced goods, cast against a 72-year history, and emblazoned with ISO quality certification, Besaans has growth in the pipeline.

“People don’t like changing suppliers a lot and they tend to stick with companies that deliver on their expectations. If you give them good service and quality products, they will

stay with you. We have been around for more than 70 years and that heritage is very important in the market.

“We have a number of apprenticeships running at the moment and we will expand that in the next year. We are hoping that as the volumes come back to our business, we will be able to create more permanent employment,” says du Toit.

Asked to summate on the state of the industry and his feelings on the

challenges ahead, Stefan du Toit remains positive and shares his optimism.

“Overall, we are definitely in a better space than we were three years ago.

“There is a lot to do. I’ve been with the company for more than 12 years and I’ve been in the foundry industry since 1994. I am still quite excited as there is a lot to do in Besaans. We have a very good management team and a very strong and motivated employee base, and that makes it very easy to ask people to challenge themselves. I still wake up with a lot of energy for the things we are doing and the things we still have to do,” he concludes..

WWW.BESAANS.CO.ZA

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ROBERTSON & CAINE

SA Business Sails Away With US & Caribbean Top Spot PRODUCTION: Karl Pietersen

Catamaran yachts built by Cape Townâ&#x20AC;&#x2122;s Robertson and Caine are some of the most popular in the US and Caribbean markets. Each year, the Woodstock-based boat builder sends hundreds of yachts across the Atlantic to Florida, where its presence in the blue oceans continues to grow.

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INDUSTRY FOCUS: MANUFACTURING

//

Like South Africa’s automotive manufacturing sector, where much of the produce ends up in other countries on other continents, the country’s luxury boatbuilding industry is also exportfocused. Centred around a select few boatyards in the Western Cape, South Africa is known globally for its expert craftsmanship. It’s no surprise – the country is surrounded by ocean, its coastline is more than 1600 miles long and, since its earliest days, South Africa has been a sailing nation. Cape Town has proudly hosted the start of the famous South Atlantic Yacht Race for nearly half a century, and the city is a regular stop-off for around the world sailing races and keen yachtsmen who navigate to the port to rest up before heading off around the southern tip of Africa and on to the East.

But, even with a strong heritage in sailing, plenty of water to satisfy, and a strong group of companies working in the boatbuilding sector, it remains a challenging industry to navigate largely due to an ongoing slowdown across the wider South

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// THERE IS NOW AN OPPORTUNITY TO PUT MORE OF A MANUFACTURING FOCUS ONTO THE BUSINESS, WITH SOME EXCITING NEW PRODUCTS COMING IN THE NEXT YEARS // African manufacturing sector.

Despite renewed optimism across the country following a change in political leadership one year ago, the stats are yet to begin to show significant turnaround. Trading Economics reported in May that the country’s manufacturing production fell 1.3% year-on-year in March of 2018, and research from economist Mike Schussler suggested that South Africa is operating at 7.4% less of its manufacturing output in 2008 (when compared to what other emerging markets look like ten years on).

The economic climate in the country has long been unpredictable and South Africa is only just emerging from technical recession, showing 2.2% growth in the third quarter of 2018 (according to Stats SA). However, one of the most prominent and well-

known yacht builders in Cape Town looks past negativity in the economy and has managed to post strong growth figures when others have been fighting hard to stay afloat.

Robertson and Caine was founded in 1991 by friends John Robertson and the late Jerry Caine. Located in Woodstock, Cape Town, the business is recognised as the industry leader and largest boast builder in South Africa, launching more than 1800 boats for clients all over the world. Exposure in the local market is limited with the company’s main market located in the USA and the Caribbean.

Robertson and Caine has become known for manufacture of world-class catamarans (sailing 40ft, 45ft, 48ft and 58ft, and power 43ft and 51ft).

Its highly-skilled workforce of more than 1600 people has propelled the company to the top of its market, netting many prestigious international awards over the years.

“Following a couple of years characterised by very rapid growth, the company is heading towards a consolidation phase. During this phase we will aim to up-skill labour and further improve the quality of our boats. Being known for high quality, our Leopard brand has become associated with good value for money and our 45- and 50-footers have become top sellers in the US,” Co-Founder, John Robertson, told finweek last year. “We place a very high premium on honesty and quality,” he added, citing the country’s growing reputation for luxury boats as a big boost for his business.

This focus on quality and value for money has allowed the company to solidify its position as a leading exporter and a premium South African

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INDUSTRY FOCUS: MANUFACTURING

brand. A report from Crystal Market Research showed that the global market for catamarans is expected to swell up until 2025 – great news for the high-flying Cape Town business.

The report listed Robertson and Caine as one of the leading contributors to the catamaran market in 2018, highlighting just how far it has come in its almost three decades.

In its infancy, the business was busy building small yachts for private clients, ticking along like everyone else in the country before getting a real shot in the arm when it picked up a contract to build catamarans for a Florida-based charter company, The Moorings.

The Moorings offers customers the opportunity to hire yachts to explore different seas, all over the world. Robertson and Caine picked up the contract to supply its yachts

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to The Moorings and currently sends hundreds of boats across the Atlantic to Florida where it opened an office in Clearwater – close to Tampa - in 1999.

Robertson told finweek that while life at the helm of South Africa’s industry-leader has been great, he has faced challenges. The recession of the early 00s is one he remembers with sweat.

“Good relationships with our buyers and suppliers were perhaps our saving grace. Many small companies went bust during the recession (2003) and sales of big companies declined by up to 80%.”

But with that negativity in the past, Robertson and Caine looks to the future with ambition. In 2017, the Leopard 45 was given the Cruising World Boat of the Year Award: Best Charter Boat. This followed on from a number of previous awards for the Leopard range in 2013, 2012, 2011 and before.

Now, the company is welcoming a new Managing Director in South Africa as Peter Giliam, a former BMW SA-man, takes the lead from Alet du Plessis who moved on in July.

Giliam said in an interview with IBI that everyone at Robertson and Caine is looking forward.

“There is a big opportunity in the market and it is in our interest to move forward. With my background I would rather we take it a touch slower and make sure we are robust.

“There is now an opportunity to put more of a manufacturing focus onto

ROBERTSON & CAINE

the business, with some exciting new products coming in the next years.”

Of the company’s expansion at its Leopard 45 facility, Giliam said: “It is done and running – a significant add-on. We’ve added a completely separate factory, a whole moulding shop for the Leopard 45.”

The opportunities are big for this manufacturer. Just 12 months ago, the South African government was celebrating record investment into the ‘oceans economy’, the maritime element of Operation Phakisa, a government programme designed to achieve growth of industries that contribute to economic development using the ocean. Former Transport Minister, Joe Masangwanyi announced last year that the initiative has unlocked investments totalling R24.6 billion, with a Government contribution of R15 billion. Over 6500 jobs have been created through the oceans economy segment of Operation Phakisa.

While Robertson and Caine vessels are rarely purchased in South Africa for use in the country, development of skills in the industry is vital for the sustainability of the company.

“Cape Town used to have a great reputation for building boats due to its huge pool of skilled craftsmen and old-style tradesmen. Over the past two to three years, however, it has become increasingly difficult to find skilled and experienced tradesmen, as if that pool has dried up. I think the industry might have become stigmatised. Old hands are retiring while young people rather want to get into white-collar work,” Robertson told finweek.

So, the company has started a training programme where local people are offered apprenticeships and development opportunities to ensure valuable skills are not lost. And those skills certainly are valuable.

In September, Vanessa Davidson, executive manager of Sabbex, the South African Boat Builders Export

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Council, announced that the country’s luxury boat building sector (from which yachts can retail for more than R12 million) generates more than R1billion for the economy while creating employment for more than 3000 people.

Suzanne Levy from Boating World, a leading African importer of luxury sailing and motor yachts, suggested that sales in the local industry could improve in the future as the economic climate in the region stabilises. “90% of locally build boats are exported,” she said. “A single yacht can take 18-months to build depending on specifications. The market in South Africa is not as large as international markets, but we have seen a growth in sales in the past year. At Boating World, we find that most of the local sales we conclude

are with our South African clients.”

As many exit manufacturing in South Africa, those that remain, and those that are able to attract investment into the country because of the excellence of their product and service should become examples to follow for all companies. Robertson and Caine is an undoubted industryleader and, with South Africa the second largest manufacturer of catamarans in the world, there is certainly more to come from this boat builder-extraordinaire.

WWW.ROBERTSONANDCAINE.COM

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G4S AFRICA

Africa: The Land

of Security Opportunities PRODUCTION: Karl Pietersen

G4S, the global security company with a mass employee base across more than 20 African countries, is planning to secure its roots on the continent by consistently delivering high-quality services to its customers that need African know-how.

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G4S port security in South Africa

INDUSTRY FOCUS: SECURITY

//

As one of the largest employers on the African continent, G4S is a vital cog in Africa’s economy. The services it renders, the money it moves, the relationships it builds are all contributors to a growing African economic contribution in terms of global GDP. But the continent remains the poorest in the world, despite its more than one billion population and quickly growing markets (Economic growth in SubSaharan Africa looks set to average 3.6% in 2019–20 according to the World Bank). However, predictions from economists suggest that Africa

is the one region of the world where significant growth opportunities and returns on investments still remain.

Companies in mature economies are looking to Africa as the last playground for development. This is why financial, retail, construction, hospitality, manufacturing, automotive, mineral, outsourcing, and many more industries are finding themselves opening up in Africa.

Aside from the fairly obvious and well-known challenges of doing business on the continent (including politics, language, culture, climate, law, poverty, conflict, distances etc) there is the widespread problem

G4S cash in transit services in Soweto South Africa

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of under-funded police services, highlighted in South Africa - the continent’s most advanced nation – where just R104 billion was spent on policing in 2016/17 (R158 billion on public order). Without the assurances of safety and security, and a trustworthy local police force, companies can sometimes, understandably, choose to invest in other regions to minimise risk.

This has fuelled the voracious growth of the private security industry on the continent, an industry where G4S is the uncontested leader.

More than 100,000 employees across more than 20 countries makes G4S

G4S AFRICA

// EVEN THOUGH THERE ARE MANY CHALLENGES TO DOING BUSINESS IN AFRICA, THE CONTINENT STILL REMAINS AN ATTRACTIVE MARKET TO TAP INTO AND PRESENTS ENORMOUS GROWTH OPPORTUNITIES // one of the largest employers in Africa.

If G4S was its own country in Africa, it would be larger than the Seychelles.

According to UCT’s Associate Professor and Director, Institute for Safety Governance and Criminology, Julie Berg, private security is a mushrooming industry.

“In South Africa, the number of businesses in operation is just under 9000, according to the Private Security Regulatory Authority,” she said in her article - Private security in Africa: time to regulate the bad and harness the good.

“Almost two million security guards are believed to be in circulation, about half a million of whom are on active duty.

“Many countries in Africa have reported an exponential growth in the industry over the past couple of decades. In South Africa the number of companies have doubled in the last 12 years and now outnumbers the public police force by three to one.

There are many more examples across the continent – as numbers of private security personnel outnumber and outperform their public counterparts.”

Clearly, private security is needed, and now that it has become so integral in everyday life, it pays to partner with a company that

comes with experience, power and a commitment to service delivery. G4S is the biggest in the business and President of the business for Africa is Mel Brooks, operating from the HQ in Johannesburg. He tells Enterprise Africa that the opportunities for the company in Africa remain significant.

“Africa is an exciting and important regional market for G4S,” he says. “Even though there are many challenges to doing business in Africa, the continent still remains an attractive market to tap into and presents enormous growth opportunities. A combination of proven approaches, services and technologies are essential to address the multi-facetted security challenges Africa faces, and to instil continuous business growth.

“Across Africa, especially East and North Africa, we are growing very fast. We’re seeing that within our businesses, particularly in those regions, we are being approached by more customers and seeing our accounts grow.

“We have a number of global clients already in Africa or who are showing interest to do business on the continent, where the security aspect is significant. My promise to them is that we can be wherever they are and wish to be.”

He says that working across the continent has become normal for G4S and this is valuable for customers entering the market for the first time.

“We have several customers that require our services and expertise on a Pan-African level. G4S prides itself

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INDUSTRY FOCUS: SECURITY

G4S secure delivery in South Africa

in understanding ‘the bigger picture’.

We have a diverse variety of services, ranging from Cash Solutions, Manned Security and Courier Services to Security Systems, Risk Services and even Justice Services, to meet our customers’ requirements

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and have a broad geographic footprint to meet demand for security in Africa and globally.

“We use our global expertise and knowledge derived from providing security solutions in diverse regulatory environments in over 100 countries

around the world, combined with local knowledge to provide our customers in with elite and tailor-made security solutions in Africa.

“If we continue on our quest of providing our customers with tailormade, innovative and integrated security solutions, I believe that our business in the Africa region will reach new frontiers and continue to grow.”

But, even for a company like G4S - with significant clout not only in South Africa, Africa and around the world – it still has to perform dayto-day. And this has been extremely challenging in recent times with a spate of issues facing the company in South Africa, specifically in its important cash in transit business.

In June, the company reported its officers transporting cash were targeted five times in one day.

Several CCTV videos have emerged showing criminals violently targeting G4S vehicles and personnel. In some

G4S AFRICA

// I THINK THAT IF YOU WERE TO APPROACH A SECURITY OFFICER IRRESPECTIVE OF WHO THEY WORKED FOR AND ASKED THEM WHO THEY ASPIRED TO WORK FOR, THEY WOULD SAY G4S // areas, explosives have been used to gain access to the secure vehicles.

Police Minister, Bheki Cele said last month that between April and November, 118 cash in transit heists had occurred.

“I can report that we have made significant inroads in breaking the

(Not limited to the above)

backs of the syndicates involved in CIT robberies. While I am satisfied with the progress, our fight with these criminals is far from over,” Cele told media. “This is one of the crimes that seem to instil a tremendous amounts of fear in South Africans.”

Brooks understands the issue and praises G4S staff for their constant high-quality and professional attitude even in the face of serious danger.

“I believe that the great work our employees does to ‘secure your world’ and their continuous efforts to ‘live’ our company values, strengthens our image and supports us in unremittingly providing expert services to our customers.

“Our business is defined by the high standards and expertise of our people. We treat our people with respect and we train them

well. We pay our people well and they are well looked after. We aspire to give people a future and career opportunities and that isn’t always the case with organisations across Africa. When talking to our customers, it is also important to them and it’s a meeting of values which can be hugely important.

“I think that if you were to approach a security officer irrespective of who they worked for and asked them who they aspired to work for, they would say G4S,” he says.

Building on the company’s already strong partnership with SAPS is vital in overcoming these challenges.

“As an organisation, we seek to work with the security and law enforcement agencies,” says Brooks.

“We are not a law enforcement agency, we are there to augment

(Not limited to the above)

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INDUSTRY FOCUS: SECURITY

security operations around the continent. It is really important that we work alongside local law enforcement and authorities accordingly. Whatever we do, we have to understand the threats and risks our customer faces. The cash business

is an area that attracts a certain element of the criminal fraternity and we work with the police to better understand that, so a close working relationship is very important.”

Working closely with SAPS will help to further G4S’s business

// THE CASH BUSINESS IS AN AREA THAT ATTRACTS A CERTAIN ELEMENT OF THE CRIMINAL FRATERNITY AND WE WORK WITH THE POLICE TO BETTER UNDERSTAND THAT, SO A CLOSE WORKING RELATIONSHIP IS VERY IMPORTANT //

G4S perimeter security in South Africa

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in South Africa and around the continent, all the time contributing to solid global performance. In November, the company released its results for the third quarter of 2018. Organic revenue growth was 2.5% for the third quarter, after 0.2% for the first six months, resulting in growth of 1.1% for the first nine months of 2018.

“Organic revenue growth of 2.5% in the third quarter compares with 0.2% in the first half of 2018.

Strong organic growth rates in security services in North America and Asia and in Cash technology

G4S AFRICA

G4S Cash in transit services in South Africa

solutions were partially offset by lower revenues in Benelux and conventional cash services,” said G4S CEO, Ashley Almanza “We continue to exercise commercial discipline in markets where labour supply is tight and whilst this is expected to constrain revenue growth in 2018, our new contract wins and substantial, high quality pipeline provide good momentum into 2019,” he added.

In Africa, the future is very bright for G4S, and Mel Brooks is confident about everything the business is looking to achieve.

“I’m hugely enthused about the opportunities in Africa, I think the innovation that we offer our customers again presents an opportunity to grow but we have to grow profitably – that is really important for us,” he says.

“I believe that the future of the security industry will be heavily influenced by technology and that there is huge potential for technology in the African market. Although our prime regional focus will continue to be our core services of manned guarding, cash security and facilities management, the intention is also to

bring new energy and innovation to our electronic security sector and its consultancy role services in Africa.”

With the private security industry estimated to be worth R40 billion annually in South Africa alone, G4S is well-positioned to improve its already strong market share, continually driving economic development and corporate success.

WWW.G4S.CO.ZA

www.enterprise-africa.net / 131

PIKITUP

Waste Not,

Want Not PRODUCTION: Benjamin Southwold

Whatâ&#x20AC;&#x2122;s in a name? For Pikitup, the goal is clear: reduce the amount of detritus left on the streets of Johannesburg through a more responsible attitude to waste management and preserve an attractive and hygienic environment for residents and visitors alike.

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INDUSTRY FOCUS: WASTE

//

When more than three million people call a vibrant, busy metropolis home, an inevitable extra pressure is placed upon those responsible for ensuring that all the waste that is left in their wake is cleared up. Combined with a global diminishment in landfill space, more innovative and practical waste management solutions are being sought in order to cope.

Johannesburg is lucky to have Pikitup at its disposal, with more than 4500 people using in excess of 200 trucks to provide refuse collection services to the city’s private and business residents. Pikitup services each of Johannesburg’s 1625 square kilometres, collecting around 6000 tons of waste every day, cleaning and sweeping approximately 9000 kilometres of streets across the seven regions.

The company has 12 waste management depots strategically located throughout the City, alongside 44 garden refuse sites and four active landfill sites.

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NECESSARY MEASURES While a traditional failsafe, landfill is no longer sufficient as a standalone solution to the growing amount of waste being produced. This is not based on scaremongering, but merely the conclusion drawn from the available data; Eyewitness News reported only in June this year warnings from the City of Johannesburg that it is critically low on space for rubbish, and, “risks hitting an ultimate disaster point in six years if nothing is done.”

The concern is that if drastic measures are not taken, household refuse will have to be transported by train to a landfill site in Mpumalanga, the costs of which will inevitably be passed on to citizens, as well as the considerable inconvenience of such an arrangement. Pikitup General Manager, Mzukisi Tshem outlined that 2500 tons of rubbish is dumped daily, and that these sites are rapidly filling to the brim.

“There are about three years of space remaining, particularly relating to this Robinson Deep site at the moment,” he clarified, referring in particular to

Johannesburg’s largest landfill.

Pikitup has shown itself totally dedicated to the Johannesburg cleanliness cause, meanwhile, working tirelessly earlier this year to significantly reduce the waste removal backlog that residents had experienced over some weeks in October. Delays in renewing the waste removal contract led to disruption at the beginning of the month‚ in turn causing waste to pile up on the city’s streets.

Pikitup added that its employees had worked weekends and overtime in order to fully rectify the backlog‚ including activity at illegal dumping spots. “We want to be the leading integrated waste management company in Africa and be considered amongst the best in the world,” Pikitup confirms, and this is exactly the kind of action which will see it achieve the lofty aim.

The vision is also fully in line with that of the City of Johannesburg: to be considered a ‘World Class African City.’

SEPARATION AT SOURCE Pikitup is making massive changes to its strategic focus, to drive a reduction in the amount of waste generated in the city, via a community-driven approach and developing innovative solutions.

Pikitup references ‘Minimisation’ as the first goal of its demanding five-point business plan.

“These activities relate to ensuring that the necessary projects are implemented to ensure prevention, and minimisation of waste, as well as to divert waste from landfills through tackling all waste streams, generated within the City of Johannesburg,” the company outlines. “Re-use, recycling and recovery activities are prioritised, and the necessary infrastructure to support these initiatives developed.”

To this end, a mandatory separation-at-source programme has been launched to contribute to increasing recycling rates in South Africa. The current figures show that only 10% of Johannesburg’s waste ends

PIKITUP

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// WE WANT TO BE THE LEADING INTEGRATED WASTE MANAGEMENT COMPANY IN AFRICA AND BE CONSIDERED AMONGST THE BEST IN THE WORLD // up in recycling plants, and the initial target is to increase that figure to at least 30%.

MMC for Environmental Affairs, Nico de Jager, agrees with such an approach, explaining that the only way to avert a crisis is to make household recycling compulsory. “Behind us we’ve got a mountain of waste. Once upon

a time that was a flat piece land. In six years’ time this land will be encroaching on where we live.”

The city has responded in kind by rolling out targeted recycling in suburbs where the city issues residents with a clear or blue recycling bag, which is then collected on a weekly basis. Pikitup Managing Director Lungile Dhlamini explained that the company expects one household to generate 13 kg of dry recyclables a month, which is Pikitup’s aim by 2021.

However, he added that, based on 2016/17 tonnages of dry recyclables collected during a pilot separation-atsource programme, each household extracted just 4.5 kg of dry recyclables a month, which made a mandatory scheme unavoidable. Rather than enforcing the programme on households, Pikitup is incentivising

households to separate their dry recyclables and will eventually offer rebates to the best performers. “[Initially], no penalties will be implemented to effect mandatory waste separation at source,” Dhlamini wrapped up, “in order for the residents to be given a fair opportunity to improve the recycling rates in the affected areas without the threat of a fine being imposed at this stage. The city will also be intensifying its education and awareness programmes to positively influence the recycling rates in the affected areas,” he finished, as Pikitup embarks on a cleaner, more prosperous future for its beloved hometown.

WWW.PIKITUP.CO.ZA

www.enterprise-africa.net / 135

EXXARO

Mining King

Spreads Its Wings PRODUCTION: Timothy Reeder

For the longest time, Exxaro Resources has been known for responsibly investing in its primary commodity - coal - to fuel the future. Now, it has begun taking steps that will take the company beyond coal and even beyond mining toward renewable energy, water and the food security businesses. www.enterprise-africa.net / 137

INDUSTRY FOCUS: MINING

//

The Exxaro vision has remained unwavering throughout the 12 years since the Kumba and Eyesizwe Coal merger brought it into being: to make a positive impact on the world. Until now, this has been solely centred around powering better lives in Africa and beyond by investing with care in commodities that will sustain life on the continent.

It has always relied on coal to take care of ensuring fuel for the future, but Exxaro has recognised that diversity is now key. Through growth and innovation, it wants to become an unstoppable source of endless possibilities.

// WE CANNOT GROW AS A COMPANY AND A NATION UNLESS WE EMPOWER ALL SOUTH AFRICANS //

138 / www.enterprise-africa.net

Exxaro has grown to become one of the largest and foremost black-empowered coal and heavy mineral companies in South Africa, and crafted a footprint with business interests around the world in Europe, the USA and Australia. As well as its coal operations, Exxaro’s asset portfolio spans investments in iron ore, pigment manufacturing, residual base metals and, now for the first time, renewable energies.

BROADENING HORIZONS Coal will still remain the bedrock of all things Exxaro moving forward, and it continues to invest heavily in its longterm coal-mining business which has a 40-year horizon ahead of it. In the second half of 2017, Exxaro embarked on an expansion programme of roughly R13-billion in coal in Limpopo and Mpumalanga.

However, Exxaro Resources has been in fervent dialogue concerning a future beyond coal, and is in talks for possible acquisitions in

renewable energy, water and the food security businesses. “We have to start thinking beyond just coal,” declared Exxaro CEO Mxolisi Mgojo to Mining Weekly of the company’s expanding focus, “we have to start thinking beyond mining.

“We’re looking at capital-light, fast growing areas of high return that can be rapidly developed with others.”

Exxaro Executive Head Strategy and Stakeholder Affairs, Mzila Mthenjane gave a stark reminder of the consequences of failing to implement necessary change.

“Delivering on a strategy of yesteryear is hardly sufficient for the future success of any company. We have an option to either embrace change or, if I can be dramatic, be annihilated by change.”

This comes after Exxaro reported 23% higher operational cash generation, of R6.8-billion, and 17% higher net operating profit to R6.1-billion in 2017. Mgojo said the company was currently in

EXXARO

// WE’RE LOOKING AT CAPITAL-LIGHT, FAST GROWING AREAS OF HIGH RETURN THAT CAN BE RAPIDLY DEVELOPED WITH OTHERS // active negotiations for a potential investment that would present additional future earnings potential.

“We’re exploring new business opportunities that will impact positively on people’s lives,” he said. “Including our mainstay core business, being our coal business, we’ve also come to understand some of the big global challenges that are impacting not only ourselves, but the continent and the world at large.”

FUTURE-PROOFING Much of what drives Exxaro’s unique forward motion comes from its new Business of Tomorrow (BoT) unit.

It is a department dedicated to scouring the globe for innovative and disruptive business opportunities that will help achieve Exxaro’s ambition of becoming an African champion, one that powers both better lives and the possibilities that are waiting to be explored.

It is a mindset which has already resulted in the branching into renewable energy and water, and which keeps throwing up opportunities which would otherwise never have been unearthed. Similar seeds are being sown all the time, not least in Exxaro’s sponsoring 67CEOs Foundation’s Global Entrepreneurship Week workshop in a bid to promote entrepreneurship in South Africa by imparting practical advice and information to SMMEs. Mxolisi Mgojo explained that Exxaro chose to sponsor the workshop because of its priority on

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“We cannot grow as a company and a nation unless we empower all South Africans,” he expanded. “It is proven that SMMEs provide the foundation for growing an economy and Exxaro is determined to power South Africa by creating the right environment and conditions to help small and mediumsized conditions survive and thrive.”

Continuing the embracing of innovation and talent nurturing, Exxaro also welcomed the launch of the South Africa Scenarios 2030 Indlulamithi project in Johannesburg in June this year, which aims to create a socially-cohesive South Africa by 2030 and create a people-centred state which prioritises the economic and social wellbeing of its citizens.

“Exxaro is proud to do its part to reinvigorate our search, as a nation,

for ways to create a society where all people experience a sense of belonging and solidarity,” outlined Mzila Mthenjane.

“The continued growth of our coal business will be essential to providing not only essential energy, but also employment opportunities, education and funding to help achieve the 2030 vision,” he finished.

“But we also have to look beyond coal, as both the country and the world respond to the challenge of climate change, and doing so is a primary focus of our strategy – one that will enable the transition to a low-carbon future.”

WWW.EXXARO.COM

www.enterprise-africa.net / 139

BRITISH AMERICAN TOBACCO SOUTH AFRICA

Smoking the Competition for Over A Century PRODUCTION: Benjamin Southwold

British American Tobacco has a long legacy in South Africa. Present and dominant in the country for more than 100 years, the company’s official history began with the creation of the United Tobacco Company in 1904 and has seen it grow into the country’s leading cigarette manufacturer and distributor. www.enterprise-africa.net / 141

INDUSTRY FOCUS: AGRICULTURE

//

Tobacco is big business in South Africa. The recently released, ‘South African Tobacco Industry in South Africa 2018’ report puts its estimated value at R28.8 billion, and calculates that it is supported by some 8.2 million adult tobacco users. The sector is also a heavy contributor to the government purse, one which paid more than R16.6 billion in excise duty and VAT in the 2016/2017 marketing season.

A 2017 national survey found that about 20% of South Africa’s adult population, aged 15 or over, smoked cigarettes. There are 176 commercial tobacco farmers and 155 small-scale tobacco farmers in South Africa adding up to a total annual tobacco crop in the region of 15 million kilograms, 90% of which is used in South Africa in the manufacture of high-quality tobacco products.

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BIGGEST PLAYER British American Tobacco South Africa (BATSA) is the largest tobacco manufacturer and distributor of tobacco products in the country in this most profitable of markets. In 2016, market research company Euromonitor International put BATSA’s market share at 74%, trailed distantly by Japan Tobacco International (JTI) (9%) and Philip Morris International (8%).

Not only the biggest enterprise in this hugely gainful market, BATSA is also proud to stand as the sole tobacco company to be featured in the prestigious Dow Jones Sustainability World Index. First published in 1999, the DJSI represents the gold standard for tracking corporate sustainability performance among the world’s largest companies in the Dow Jones Global Total Stock Market Index (DJGTSMI).

// WE ARE THE ONLY TOBACCO COMPANY TO HAVE MADE THE CUT FOR THE DJSI WORLD, MAKING US THE TOBACCO INDUSTRY LEADER // The methodology employed measures companies’ adherence to the sustainable business principles that each candidate advocates, and how well these are communicated to investors and other stakeholders.

Simon Cleverly is Group Head of Corporate Affairs at British American Tobacco, and was unequivocally heartened by the company’s repeated

Proud supply chain partner to British American Tobacco South Africa since 2010.

INDUSTRY FOCUS: AGRICULTURE

feature among the best in the world.

“We are delighted to be included, yet again, in the Dow Jones Sustainability Indices,” he said. “Not only is this our 17th consecutive year of being listed, but this year we are the only tobacco company to have made the cut for the DJSI World – making us the tobacco industry leader.

“We are incredibly proud that our world-class sustainability agenda continues to be recognised by such a prestigious external organisation – a testament to, among other things, our commitment to upholding the highest standards of corporate conduct across the world, to our tobacco harm reduction activities and to ensuring we market our whole range of cigarette and potentially reduced-risk products in a responsible manner to our adult consumers.”

TOP EMPLOYER The awards just keep coming for British American Tobacco, as it has once again been recognised by the Top Employers Institute as one of the best companies to work for in Africa.

The Top Employers Institute conducts independent and internationally verified research into how a company looks after and develops its people, and only organisations that achieve certification in at least four countries within the region earn the special 2019 Top Employers Africa recognition.

This is the second year running that BAT has achieved the African certification, having been recognised as a top employer in South Africa, Angola, Zambia, Zimbabwe, Mozambique, Kenya and Nigeria.

// WE ARE EXCITED ABOUT ACQUIRING A LEADING VAPOUR BRAND AND THE OPPORTUNITIES IT PRESENTS // The South African top employer certification, meanwhile, was awarded for the tenth year running.

Of this sustained recognition, BAT commented: “Having operated in South Africa for more than a century, we boast a brand portfolio of 22 distinct brands, with a workforce of over 2000 employees. As one of the largest companies on the JSE we are proud to have been consistently

(c) Top Employers Institute. Photo - Simphiwe Nkwali. LtoR Francis Mwale, Soraya Benchikh, Wendilene Balie - BAT SA Management Team

144 / www.enterprise-africa.net

BRITISH AMERICAN TOBACCO SOUTH AFRICA

// AS ONE OF THE LARGEST COMPANIES ON THE JSE WE ARE PROUD TO HAVE BEEN CONSISTENTLY CERTIFIED AS TOP EMPLOYER FOR THE LAST COUPLE OF YEARS // certified as Top Employer for the last couple of years.

“We are driven by our commitment to transformation and we believe that our people are our greatest assets and our investment in their training and development has resulted in a strong culture of leadership and resilience. Our diversity remains one of our many strengths.

SECURING SUCCESS As an increasing number of competitors emerge into this most appealing of markets, BATSA has made a range of moves to cement its success for another century to come. One of the most important was its agreement to acquire 100% of Twisp Proprietary Limited, a vapour company based in South Africa. This is in line with BAT’s aim is to grow the next generation products (NGP) category of its offering, to offer consumers a wider choice of alternatives to smoking.

The vaping market, which has created more than 4000 jobs in the wholesale and retail sectors, is expected to generate an additional 10,000 jobs in South Africa over the next decade. This is according to Vaping Products Association of SA (VPASA) spokesperson, Fidel Hadebe. One factor in the e-cigarette industry’s continued strength in South Africa is going is many smokers’ decision to switch to vaping in a bid to quit smoking, with many health experts having advocated vaping as an alternative to smoking.

BATSA CEO Soraya Benchikh said Twisp is a leading vaping supplier in SA and that the acquisition will contribute towards BAT’s growth and sustainability. “We already have a large footprint elsewhere in the world. We are committed to the growth of our NGP business and it was only natural that we extend our offering in SA with a range that is familiar to this market.

“We are excited about acquiring

a leading vapour brand and the opportunities it presents.”

BAT has set itself for widespread success for the foreseeable future, as the most recently-released global results confirm. “In the first six months of 2018, the Group continued to perform well,” BAT commented. “The cigarettes and THP portfolio has outperformed the industry as market share grew 40 basis points (bps) with a tobacco price mix of approximately 4%, which is expected to strengthen in the second half of the year.

“Our strategy is to continue to grow our combustible business while investing in the exciting potentially reduced risk categories of THP, vapour and oral,” BAT outlined. “As the Group expands its portfolio in these categories, we will continue to drive sustainable growth.

“We anticipate another good year of adjusted earnings growth at constant rates of exchange.”

WWW.BATSA.CO.ZA

www.enterprise-africa.net / 145

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.

GHANA TRADE SHOW JAN 31 – FEBRUARY 02 | ACCRA GHANA TRADE SHOW 2019 is the prime event in Ghana attracting visitors from 12 African countries.

Exhibitors from 20 countries will be exhibiting displaying a wide range of products from the below sectors: Automotive, IT, Electronics, Building, Construction, Medical, Pharmaceutical, Food, Hotel Supplies, Consumer, Household, Industrial Machinery, Safety, Security, Printing, Packaging, Plastics, Rubber.

The exhibition will be held at Accra International Conference Centre, the perfect venue for hosting International trade exhibitions in Accra. It is situated in the heart of the capital city. Its exhibitions attract trade visitors from all the sectors of Ghana and the neighbouring countries such as Burkina Faso, Mali, Niger, Ivory Coast, Togo, Benin & Nigeria etc.

It offers high standard facilities, equipment & services.

ASLM2018 DEC 10 -13 | ABUJ ASLM2018 is the fourth biennial international conference of the African Society for Laboratory Medicine (ASLM).

ASLM2018 aims to serve as a platform for the international laboratory medicine community to share best practices, acquire

146 / www.enterprise-africa.net

knowledge and debate innovative approaches for combatting global health threats.

Specifically, ASLM2018 will: • Provide information on the laboratory medicine landscape and needs in Africa • Increase awareness of opportunities to invest in laboratory medicine amongst private, public and philanthropic donors • Facilitate networking among participants, particularly for newcomers to African healthcare settings and markets • Promote the creation of public-private partnerships to ensure further development of both African laboratories and African diagnostics companies FOOD AFRICA DEC 09 | CAIRO Food Africa is the continent’s largest International Trade Exhibition specialized in the Food and Agro industries. The exhibition, combining an innovative format of showcasing, networking, and matchmaking, is a unique platform to access the Egyptian megamarket, and Africa’s booming agriculture industry. Food Africa is the peerless portal to access major agriculture opportunities in Egypt and Africa.

KENYA TRADE EXPO KENYATTA INTERNATIONAL CONFERENCE CENTRE DEC 09 – 12 FOOD AFRICA EGYPT INTERNATIONAL EXHIBITION CENTRE DEC 09 - 11 ASLM TRANSCORP HILTON ABUJA DEC 10 -13 ECOMOF SOFITEL ABIDJAN HOTEL IVOIRE DEC 10 – 12 SHIELD AFRICA ECOLE DE POLICE D’ABIDJAN JAN 21 - 24 MAROCARNE & MILK OFFICE DES FOIRES ET EXPOSITIONS DE CASABLANCA (OFEC) JAN 23 - 25 GHANA TRADE SHOW ACCRA INTERNATIONAL CONFERENCE CENTRE JAN 31 – FEB 02

SKA1 MID - the SKAâ&#x20AC;&#x2122;s mid-frequency instrument The Square Kilometre Array (SKA) will be the worldâ&#x20AC;&#x2122;s largest radio telescope, revolutionising our understanding of the Universe. The SKA will be built in two phases - SKA1 and SKA2 starting in 2018, with SKA1 representing a fraction of the full SKA. SKA1 will include two instruments - SKA1 MID and SKA1 LOW - observing the Universe at different frequencies.

Frequency range:

350 MHz 14 GHz

Location: South Africa

to

~200 dishes (including 64 MeerKAT dishes)

Total collecting area:

33,000m2

or

Maximum distance between dishes:

126 tennis courts

150km

Total raw data output:

2 terabytes per second

62 exabytes per year

SKA1 MID

Enough to fill

x340,000

340,000 average laptops with content every day

Compared to the JVLA, the current best similar instrument in the world:

4x the

resolution

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5x more

sensitive

Square Kilometre Array

60x the survey speed

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The Square Kilometre Array

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