Enterprise Africa February 2019

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

February 2019

www.enterprise-africa.net

First Class Travelstart Flying High in

Booming African Tourism Sector Exclusive interview with Managing Director Jerome Touze ALSO IN THIS ISSUE:

Lithon Project Consultants / Poison City Brewing / Retractaline / Technicolour

www.fishgate.co.za_BR_9334

PROJECTS BIG AND SMALL

we welcome them all!

WE ARE SUPPLIERS OF BRIGHTS HARDWARE is a Western Cape-based hardware chain dedicated to providing customers with great service, quality products and expert advice on all things hardware.

Since 1971, BRIGHTS has been a consumer & industry partner for anything from putting up a shelf to building someone’s dream home. From DIY to construction contracts, we are your definitive contact – now with eight stores and a growing online store for your convenience.

SERVICES WE PROVIDE Truss Plant for all roof trusses. Estimations, deliveries and online shopping. B-BBEE Procurement Partner Quotations.

Building material

Hardware

Powertools

Bolts & Nuts

Tools

Curtaining

Plumbing

Irrigation

Paint

Gardening

Electrical

Pool

Electronics

Outdoor

Lighting

Automotive

CONTACT US Tel: 0861 333 777 Web: www.brights.co.za | Email: brights@brights.co.za Like us: Brights Hardware

Follow us: @BrightsHardware

Hardware store

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

//

This month we are reminded of the amount that South Africa has to offer the world in terms of its exports, and the huge offerings that the country delivers for those heading into South Africa, as tourists, commuters, or for any other reason.

Heineken South Africa has invested heavily in its product portfolio, bringing a fantastic range to a country that spends more on beer than it does on vegetables.

Now offering Soweto Gold and Strongbow Apple Cider, Heineken is catering to customers who want a premium offering but produced locally in SA. Also in the brewing space, Poison City Brewing – the Durbanbased craft beer and cannabis drink manufacturer – has released its cannabis lager and is looking for opportunities to bring the intriguing new product to new markets. It’s all change for founders Graeme Bird and Andre Schubert who are finding themselves at the centre of the ‘cannabis in foods’ discussion.

We also hear from Retractaline, the KZN-based manufacturer of homewares for the laundry market. After investing in a new production plant at the Dube TradePort, the company is now looking to lead its industry in South Africa and export into Africa.

It’s a similar story at Technicolour, the Bloemfontein-based auto body repair shop, where Damian Esterhuizen is looking to take the business into Uganda.

Our lead feature in February comes from Travelstart. Based in Cape Town, the online travel agency is becoming increasingly important in what is a booming travel and tourism market around Africa. The company has performed so well in SA that it is now expanding on the continent as well as breaking in to the Middle Eastern market. Entrepreneur and Managing Director Jerome Touze talks to Enterprise Africa about Travelstart’s ambitious plans to always do more for its customers.

What is your company doing to not only serve customer but to delight them and ensure they come back? Tell us online @EnterpriseAfri1

Administration & Finance +44 (0)20 7193 0419 Advertising & Feature Sales +44 (0)20 8123 7859 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 2019

www.enterprise-africa.net / 3

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

72/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

8/TRAVELSTART First Class Travelstart Flying High in Booming African Tourism Sector Ever-evolving online travel agency business, Travelstart, is investing in growth by targeting new geographies, new verticals and new customer groups. In its 20th year, the company is celebrating the success of its brilliant app called Flapp, and Managing Director Jerome Touze is looking forward to an increasingly international future for the company.

8/ 4 / www.enterprise-africa.net

CONTENTS

14/

49/

25/

INDUSTRY FOCUS: ENGINEERING

INDUSTRY FOCUS: FOOD & DRINK

14/LITHON PROJECT CONSULTANTS ‘Let Us Rise Up and Build’ the Call from Lithon’s Visiopreneur Director

49/POISON CITY BREWING Poison City Flying High Following Release of SA’s First Cannabis Beer

INDUSTRY FOCUS: AUTOMOTIVE

54/HEINEKEN SOUTH AFRICA Brewing up With the Perfect Recipe for Success in SA

25/TECHNICOLOUR Bloemfontein Body Shop Still in Pole Position After 25 Years

INDUSTRY FOCUS: FINANCE

31/TRANSCOR Making Safety, Reliability and Prompt Delivery the Norm

61/AFRICAN FINANCIAL GROUP Successfully Delivering Quality Healthcare for ‘Missing Middle’

INDUSTRY FOCUS: MANUFACTURING

INDUSTRY FOCUS: PROPERTY

37/GRW At the Cutting-Edge of Tanker Technology

66/SAOTA Constructing A Fearsome Global Reputation

42/RETRACTALINE Hanging High atop SA’s Manufacturing Industry www.enterprise-africa.net / 5

DAM LEVELS CONTINUE TO DROP The Department of Water and Sanitation has called on water consumers to intensify their water conservation efforts to save the country from a dry winter.

The department said that South Africa’s dam levels continued to drop, despite thundershowers in some parts of the country. A weekly dam levels report released by the department this week, paints a gloomy picture about the state of water since the beginning of the heat wave two months ago.

The report showed a drop in national water average from 63.6% last week to 62.9% this week.

This news effected the entire country with all municipalities suffering thanks to a heat wave across South Africa.

ABSA BOSS TO RETIRE Mario Ramos will step down from her role as Absa’s Group CEO at the end of February. After 10 years at the helm of one of South Africa’s biggest financial institutions, Ramos is turning 60 and has decided to move on.

The Board has appointed Mr René van Wyk as the Interim Chief Executive with effect from 1 March 2019 and has stated that an announcement regarding a permanent replacement will be made in due course.

“I would like to thank members of the Board and Exco, past and present, for all the support they have provided over the years. I am also grateful for the opportunity to lead an organization with committed colleagues,” said Ramos.

6 / www.enterprise-africa.net

PAY HIKE FOR CONTRACT CLEANERS Labour Minister Mildred Oliphant has announced wage increases for the contract cleaning sector.

In Area A, which includes Metropolitan Councils such as City of Cape Town, Greater East Rand Metro, City of Johannesburg, Tshwane and Nelson Mandela, the new minimum rate per hour will be R22.00, up from R20.74 in the 2018/19 financial year.

In Area B, the new minimum wage will be R22.20 per hour, up from R20.00.

Conditions of employment for KwaZulu-Natal areas shall be subjected to the agreement concluded in the Bargaining Council for the Contract Cleaning Service Industry KwaZulu-Natal.

In Area C, which includes the rest of the Republic of South Africa, the minimum rate per hour will be R20.07, up from R18.90. The new minimum rate will be applicable from 1 February 2019 to 31 January 2020.

Speaking at the launch in January, Zikalala said the industry has in the past succumbed to severe international

pressure that led to job losses.

He said the Africa Bespoke Apparel factory, which has capacity to handle over 235,000 garments per month, is equipped with state-of-the-art technology which makes it able to compete internationally.

“We are pleased to report today that government, in partnership with private sector stakeholders, are working together to rebuild our manufacturing capacity in the clothing and textile industry.

Government continues to avail financial assistance and other support to make the domestic clothing and textile industry more competitive,” the MEC said.

At full capacity, the factory will create over 750 permanent jobs, drawing most of the employees from surrounding areas. The bulk of the employees will be previously disadvantaged women between the ages of 18 and 60 years.

As a country, South Africa’s top destination markets for clothing include the SADC region, United Kingdom, United States, United Arab Emirates, Nigeria and Kenya.

NEWS SNAPSHOT

SHOPRITE PROFIT WARNING SPARKS UNCERTAINTY At the end of January, Shoprite issued a warning to shareholders that HEPS could fall by up to 36%. This news was met with a negative response in the market with the company’s share price falling by almost 17%.

Currently, Shoprite has more than 2840 stores across 14 countries and is widely known as one of South Africa’s major business success stories.

Some reports have emerged stating that the challenges relate to the business losing visionary founder

and CEO, Whitey Basson back in 2016. Pieter Engelbrecht has been in charge at Shoprite for two years now, and he faces the challenge of settling investors.

In 2018, the retailer spent R7bn on centralised warehouse facilities and information systems. This follows six years of investment totalling R40bn.

On Wednesday 30 January, the JSE was trading slightly weaker, despite gains from gold miners, thanks to Shoprite’s slump.

CUT OUT FOR SUCCESS KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala, has launched the biggest black-owned textile firm as part of efforts to revive the local clothing and textile industry.

Launched in Verulam, the blackowned and black-managed, cut-makeand-trim (CMT) factory is part of the province’s concerted and continued efforts to supporting the local clothing and textile industry.

Speaking at the launch in January, Zikalala said the industry has in the past succumbed to severe international

pressure that led to job losses.

He said the Africa Bespoke Apparel factory, which has capacity to handle over 235,000 garments per month, is equipped with state-of-the-art technology which makes it able to compete internationally.

“We are pleased to report today that government, in partnership with private sector stakeholders, are working together to rebuild our manufacturing capacity in the clothing and textile industry.

Government continues to avail financial assistance and other support

to make the domestic clothing and textile industry more competitive,” the MEC said.

At full capacity, the factory will create over 750 permanent jobs, drawing most of the employees from surrounding areas. The bulk of the employees will be previously disadvantaged women between the ages of 18 and 60 years.

As a country, South Africa’s top destination markets for clothing include the SADC region, United Kingdom, United States, United Arab Emirates, Nigeria and Kenya.

www.enterprise-africa.net / 7

TRAVELSTART

First Class Travelstart Flying High in Booming

African Tourism Sector PRODUCTION: Karl Pietersen

Ever-evolving online travel agency business, Travelstart, is investing in growth by targeting new geographies, new verticals and new customer groups. In its 20th year, the company is celebrating the success of its brilliant app called Flapp, and Managing Director Jerome Touze is looking forward to an increasingly international future for the company.

//

In 2018, hotel occupancy rates in Africa increased on average (compared to 2017) to 60.6%.

In South Africa, Cape Town remains the star, with occupancy rates and average daily rates exceeding all other cities.

This success is paired with a favourable environment in the air travel industry where African airlines posted the second fastest growth rate in the world in August 2018 (6.8%), according to a report issued by the International Air Transport Association (IATA). The report also highlighted the huge

8 / www.enterprise-africa.net

potential for expansion, citing Africa’s population of more than 1.3 billion only accounting for 2.2% of global air traffic. Africa’s tourism industry continues to boom in terms of visitor numbers. In 2017, the continent hit a 63 million high in international tourist arrivals compared to 58 million in 2016. A growing population with more disposable income and access to an increasing number of low-cost airlines has also fuelled the growth of domestic tourism, and travel and tourism now contributes around 8.1% to Africa’s

GDP. With all figures expected to grow, and with governments highlighting tourism as a creator of jobs, those active in the industry are excited.

Jerome Touze, Managing Director at online travel agency Travelstart tells Enterprise Africa that the industry is indeed booming and this is encouraging Travelstart to invest in growth.

“Travelstart is turning 20 this year and we have a lot going on with many celebrations to look forward to.

“There have been a lot of things that have been done to bolster tourism

INDUSTRY FOCUS: TRAVEL

and attract tourists into South Africa, but domestic tourism has also received a lot of attention. At township level, there has been a lot of effort to drive empowerment and entrepreneurship.

South Africa Tourism has done a great job working with local tour operators and working in developing the micro economy in the country.

“We are a big player in the domestic market. We bring people to South Africa and we take people outside of South Africa. Looking at South Africans, where do they travel to most – Namibia, Mozambique, Mauritius, Indonesia, Thailand, USA, UK to name a few, and we can cater for all of these needs.”

1 MILLION DOWNLOADS Through the Travelstart website, customers can look up, compare, book and pay for flights, hotels and car rentals, among other amenities. The process is simple, easy and fast. In 2015, helping to make things easier, simpler and faster, the company developed an app called Flapp for mobile use, and the booming tourism market

10 / www.enterprise-africa.net

has helped drive success of Flapp.

Initially launched as an app purely for commuters servicing primarily business travel between Johannesburg and Cape Town, Flapp now offers flights to all destinations on all airlines, a handy extension of the Travelstart website.

“The adoption of mobile technology in emerging markets is a lot faster than what you might find in the Western world, explains Touze. “In South Africa we have seen very positive adoption of our mobile app. We have just celebrated download number one million so we have a promotional activity going on. Currently, desktop is the bigger driver of volume but that is changing very quickly. We have a large number of searches through mobile, and not just through the app, also through our mobile website. We are also seeing greater conversion on our app. This is not just a Travelstart trend, it’s something that you will see across most ecommerce companies. It’s a great product and our developers have done a fantastic job. Customer acquisition and retention are vitally important to us

and we like to do it through channels that are more cost effective - Flapp gives us that opportunity.”

As well as pushing Flapp, Travelstart is looking to grow its share of the expanding market by increasing and improving the services it offers. “We definitely have ambition,” laughs Touze.

“The moment you think you have conquered a summit is the moment you are in trouble. We will never be complacent even with a strong market share where we have been active for many years.”

He explains that Travelstart has been predominantly orientated around flights and that remains the bulk of what the company does today, but he recognises that there is so much more to the pure flight booking. “Whether it’s travel insurance, seat selection, meal selection, flexi tickets – these are some of the services we will look to optimise further in 2019 and beyond.

“We can also do a better job when it comes to customer satisfaction. We have proved on many occasions that our processes can be refined and that comes down to coaching, training, ability to upsell, active management on the floor and the desire to deliver positive customers experiences through people and technology.”

GLOBAL TRAVEL AMBITION Jerome Touze, originally from France, started with Travelstart in 2018 as Chief Marketing Officer before being promoted to Managing Director in January of this year. The company now has offices in Cape Town, Lagos, Nairobi, Cairo, Dubai, Athens and Taipei.

“This is no longer just a South African story; this is a global story,” says Touze. “Our additional hubs are becoming increasingly important.

The Nigerian market is showing huge potential. We have an operation in Lagos with around 50 people and we also have an operation in Dubai where we have been experiencing very strong growth in the MENA region. Our group CEO will be travelling to those

TRAVELSTART

parts of the globe to look at corporate opportunities beyond what we have been doing in South Africa.”

And, like in South Africa, Travelstart will look to dominate the market across all verticals in these new geographies after flying high with success from its core market of flight bookings.

“We are very keen to hone our position in Nigeria and the Middle East. They are two huge markets for us and we have invested a significant amount of time and money. We are seeing an increase in market share which excites us.”

Another area where the company is targeting increased market share is with business travellers. Travelstart is already catering for those who commute or travel for work purposes but the target for the future is to deliver a bespoke solution for companies with employees

who move around on a regular basis. Recently, Travelstart launched Travelstart for Business, a business travel booking and reporting tool offered to companies and individuals globally, where businesses can book travel, add travellers and monitor business travel through reporting tools. Travellers can toggle between their personal and business travel accounts with ease, enjoying the same simple booking flow on both. In addition, business travellers can benefit from negotiated fares, corporate deals, no setup fees and round-the-clock customer support.

“We are very excited about the B2B market,” admits Touze. “Look at the amount of companies that exist in South Africa, with hundreds of employees, where a percentage travel regularly.

Those travellers don’t always have an outsourced travel procurement agency

and they will often book their flights and hotels in the same way we might book in a personal capacity. In December 2018, we launched our B2B platform and many exciting features will be rolled out in the coming months.”

Currently, the commuter routes that connect Cape Town’s International Airport, Johannesburg’s O.R. Tambo and Lanseria Airports, and Durban’s King Shaka International are the most popular in Africa and Travelstart sees an opportunity to capitalise on the traffic in the skies.

“80% of what we sell is domestic but it varies depending on season. A typical customer is a business traveller who commutes between Cape Town, Johannesburg, Durban and the other city hubs. We are a big volume driver of seats in those corridors,” says Touze.

Now flying twice a day between Johannesburg and London Heathrow.

Visit www.travelstart.co.za or call 021 486 4300 to book.

Trade - Travel Industry Review print Ad 210x149mm_AW.indd 1

18/09/2018 13:53

www.enterprise-africa.net / 11

INDUSTRY FOCUS: TRAVEL

COMPETITIVE MARKET Getting Travelstart off the ground in South Africa and up to cruising height has been no easy feat. There are numerous strong competitors in the local market, and many international players that offer services of a similar nature. For this reason, the company has to remain lean and innovative, while always focussing on service delivery.

“Customers will always have a choice and so we want them to have Travelstart at front of mind when it comes to fulfilling their needs,” says Touze.

He highlights the fact that customers can still book their flights and services directly through airlines or hotels, and competitors remain who offer alternatives such as physical outlets and presence across international markets. But he also states that Travelstart is technologically advanced and has an employee base with unrivalled experience.

“What I like about the proposition of Travelstart is the no fuss element – it’s very simple. You go to the website and it does what it says it will do. It’s clean and sleek, there’s no clutter. The website is light and delivers a simple message. It’s about the authenticity in the message, the price and the speed of technology. Some of our peers to do not have this cutting-edge technology.

We’ve been doing it for a long time and we attract talent, and that brings us differentiation,” states Touze.

12 / www.enterprise-africa.net

“People start paying attention as your audience grows,” he adds.

“Travelstart is now a big volume driver and so many doors have been opened.

But, while we work closely with the airlines, we also compete. People can go directly to the airlines, or they can go to Travelstart where they get great range, speed, simplicity and price – one of our key differentiators. We do have to work hard at it, and we dedicate people to work on our partnerships with airlines and other businesses. We have to ensure we are delivering value for them.”

But competition, according to this self-confessed optimist, is a welcome ingredient in any successful recipe.

“It’s good for customers,” he insists.

“It goes back to not taking anything for granted – just because you have strong market share, it doesn’t mean you can relax. The simplicity of our delivery along with the execution of what we provide is our true differentiator.”

STEEPED IN SA HISTORY The roots of Travelstart go back to the late nineties and to Sweden, where former DJ Stephan Ekbergh had established the business in Europe, but had seen chance in South Africa after being frustrated about the challenges he faced when travelling in Africa. It was not easy to get online and search for flights or accommodation, and reliable online travel agents were few and far between. The entrepreneur saw the opportunity and

// THIS IS NO LONGER JUST A SOUTH AFRICAN STORY; THIS IS NOW A NIGERIAN STORY, A KENYA STORY, A MIDDLE EASTERN STORY // moved out to Cape Town, learning the SA business beat, and never looking back.

“He started it in Sweden in 1999 and then came out to South Africa on holiday and realised there must be a better way to plan travel around Africa. Of course, he was blown away by the incredible beauty of Cape Town and he wanted to set up shop here. Today, he has been in Cape Town for more than 20 years,” says Touze, a long-time friend of Ekbergh.

“Stephan and I go way back,” he adds. Touze, a fellow entrepreneur who founded travel social media network wayn.com in 2002, was approached

by Ekbergh and team to help develop the business further in Africa, using his experience of the travel industry.

“I sold wayn.com to lastminute.com in 2016 and 18 months later, I met with Stephan. They were doing some very exciting things. When the opportunity to join the team presented itself, I seized it with both hands.”

Ekbergh, according to Touze, remains very hands on in his role as Group CEO and will spend more time moving forward looking at additional opportunities in and outside South Africa which could complement the growth of the company.

“He is an incredible guy, very humble and down to earth, and that was one of the things that attracted me to working with him. From one entrepreneur to another, you can relate to the stories that entrepreneurship brings – there is such a thin line between success and failure. We have both gone through the challenges of fund raising and macroeconomics and we can relate.”

TRAVELSTART

// SOUTH AFRICA BRINGS HUGE POTENTIAL AND THERE IS MUCH MORE FOR US TO DO – WE ARE YET TO EVEN SCRATCH THE SURFACE // As well as investing heavily in the customer experience, Travelstart is a modern employer and invests comprehensively in its staff. Significant time, money and thought has been invested into the company’s HQ, just off Cape Town’s Kloof Street, creating an environment perfect for creativity and imagination. Large and open meeting spaces, enclosed individual work zones, lots of glass, and contemporary décor throughout create a home where employees like to stay.

With more than 350 ambitious people focussed on delivering for the customer, Touze remains enthusiastic about Travelstart’s future.

“I am a positive and bullish person.

Looking at South Africa and all the challenges it has from an investment perspective, it still presents so many opportunities and I am very excited.

The next levels for us are tapping into

the verticals and tapping into new geographies,” he says.

Even through the challenges that the company has faced right on its doorstep, where Cape Town tourism has seen a slump thanks to water restrictions and the ‘Day Zero’ campaign, Travelstart will continue to encourage tourists and commuters to travel.

“Last year, the Western Cape was hit by a severe drought and that was extremely damaging. A lot of action was taken by the government and private sector. A lot of education was needed, for both local businesses and tourists, and although this was for the greater good, it resulted in a big knock on effect in the tourism industry. There is a time lag with these things and, even though water supply is back up to more than 60%, we will not see a resurgence in tourism overnight.”

Africa’s share of global air passenger

traffic is expected to grow by 4.9% annually over the next 20 years and tourism is expected to contribute more than 12% to the continent’s GDP in coming years. Job numbers in tourism are expected to rise by around 3% each year as this burgeoning industry becomes one of the main engines of growth. Asked for his personal thoughts on the prospects for Travelstart in such an exciting sector, Touze is clear: “Travel is not going away. People are always going to travel. They are still going to book flights so that they can handle their business. Disposable income continues to increase. South Africa brings huge potential and there is much more for us to do – we are yet to even scratch the surface,” he concludes.

WWW.TRAVELSTART.CO.ZA

www.enterprise-africa.net / 13

LITHON PROJECT CONSULTANTS

‘Let Us Rise Up and Build’

the Call from Lithon’s Visiopreneur Director PRODUCTION: Karl Pietersen

Namibia-based Lithon Project Consultants – a leading African engineering firm – is readying itself for expansion across the continent. Busy preparing for construction of the Otavi Rebar Manufacturing Plant, Founder and Executive Chairman, Adriaan Grobler tells Enterprise Africa about the company’s growth strategy as well as his plans to drive social change in Namibia and beyond.

14 / www.enterprise-africa.net

INDUSTRY FOCUS: ENGINEERING

//

Visiopreneur Adriaan Grobler started Lithon Project Consultants in 2002 after realising that the purpose in his life is to make a significant impact in the lives of people.

Drivers of infrastructural and social change, Lithon (the Greek word for cornerstone) is based on the Word of God, strongly value driven and focussed on its people.

Grobler describes a visiopreneur as someone who sees a better tomorrow, takes action and executes to achieve. “Call it a dreamer and a doer all in one.”

He has set his sights on developing a better, brighter, stronger future for Africa, and he hopes to do it through Lithon Project Consultants by constructing

roads, buildings, sewers and other infrastructure, but also by contributing to social upliftment through various funding initiatives.

Lithon has successfully completed more than 200 projects and the company is currently involved in many more that are in various stages of development.

Grobler, who has personally overcome serious health issues to remain at the forefront of the industry, explains that consistency is key to the success of his business.

“Starting up and growing a business is easier than keeping it going sustainably year after year – and that is where we are right now,” he tells Enterprise Africa. “Times are tough, the depression we see has been going on for the last 10 quarters, and for us to

expand into Africa, we need cash, so we are diversifying to drive revenue.

We are focussing on private-public partnerships and seeing how we can find a different solution for our clients while bringing the money, technology and understanding politics.”

Another vital factor is collaboration. Reaching out, connecting, and achieving together has been a cornerstone of Lithon’s success. “The time of being just a consultant is gone,” says Grobler.

“In the old days, you could be appointed by a client and complete your project, but now, if you don’t come with a full solution you will end up as a subcontracting consultant picking up bread crumbs. We want to be agents of change by creating projects and helping to finance them too.”

Providing excellent, value added construction services to our customers Founded in 1976, Nexus Group is Namibia’s leading building and civil construction group with over 40 years industry experience. Nexus Group and its affiliates are 100% Namibian owned and managed with more than 30% Black Empowerment shareholding.

Nexus Group has proven capability to deliver on a wide range of projects to a multitude of clients in diverse markets. We also have extensive tender capabilities.

Nexus Building Contractors covers the full range of conventional construction which includes: • hospitals, retail centres, residential complexes, office accommodation, educational institutions, hotels & lodges and industrial facilities as well affordable housing for the public sector.

Nexus Civils has capabilities spanning: • Municipal infrastructure - water, reservoirs, sewerage plants, roads, storm water and electrical • Transport infrastructure - roads (Bitumen & Gravel), bridges, airport terminals, aprons and runways.

• Bulk earthworks as well as landfill sites.

In order to maintain a high level of service and support to our stakeholders as well as keep up with the continuous demand for excellence, we frequently invest in our plant.

Being one of Namibia’s leading building and civil construction groups, Nexus group has endeavoured to assist government in achieving its action plan towards prosperity for all Namibians. Otavi Rebar Manufacturing Plant is an important project for Namibia which will boost our local economy. We would like to congratulate Lithon Project Consultants for their dedication on this project and the milestones they’ve achieved.

16 / www.enterprise-africa.net

Working together for a common objective, to ensure delivery exceeds what was promised

+264 67 313 770 nexus@nexusgroup.com.na www.nexusgroup.com.na

INDUSTRY FOCUS: ENGINEERING

Ndonga Pompstasie

TURNKEY PROVIDER A significant selling point for Lithon Project Consultants is its experience in the industry and its ability to offer a complete solution that goes right from feasibility studies and project planning through to design, tender preparation, site supervision, project management, quality control, and many more related services.

“We are now one of the top five firms in Namibia,” states Grobler.

“There are two legs of the business right now – Lithon Project Consulting and Lithon Developers.

Currently, the development business is working on three affordable housing projects; bringing a greenfield project, preparing concepts, taking it through prefeasibility stages, and moving to the EPC stage from where you can create

18 / www.enterprise-africa.net

Arandis Substation Upgrade

a bankable and operational project.”

This expertise has resulted in Lithon Project Consulting being asked to help bring about the development of a new steel plant in Otavi, close to the Etosha National Park.

The Otavi Rebar Manufacturing Plant will use scrap metal sourced from around Namibia and its neighbours to produce 300,000 tons (annually) of billets and rebar (8mm to 32mm). The products are vital for the development of local manufacturing, building and construction industries. The project is owned by Otavi Rebar Manufacturing (Pty) Ltd of Namibia and NORIC of Switzerland. On completion, it is suggested that the new plant will employ some 300 people.

Currently, Lithon is targeting start of construction for August 2019.

// FOR AFRICA’S FUTURE, MY OPINION IS THAT PRIVATE CAPITAL MUST BE PARTNERED WITH GOVERNMENT // “It will be tough. If we manage to achieve it, I will be very impressed,” admits Grobler. “We would like to get to financial close by the end of this year, and that will be viewed as a success. Over the next two months we will be busy putting together the information memorandum which the financial arranger, Nedbank, can use to start arranging capital. Projects of this nature are complex, especially

LITHON PROJECT CONSULTANTS

Basil Read Husab Road

on the legal side, so there is a chance that delays can creep in. But we are still on target and we believe that it will be done.”

Recognising the need for ambitious projects that create jobs, in a time where Namibia is faced with economic contraction of 0.2% in 2018, the government has thrown itself behind construction of the Otavi Steel Plant.

“We have a lot of support. From the very beginning, we have involved the government in the project and they fully back the idea. The founding President, previous President and current President have all backed the plans, so we are positive,” explains Grobler.

“All companies in Namibia are going through a tough patch right now and the economy is not strong. We are all hoping for a quick turnaround,

Henning Sidings

but we have accepted that it will be a tough journey,” he adds.

When all arrangements are finalised and workmen begin onsite, the area will be busy for two years. “We hope that the plant will be in operation by the end of 2021,” states Grobler.

He also points out that Lithon is busy organising the launch of a new development fund to help assist with projects like this, all over Africa, in the future.

“We have created an Urban Infrastructure Development Fund which is like a private development fund with which we will go to the market in March/April to raise capital. We will use it to assist councils with long-term urban planning or installation of services and then selling it to developers or back to government. We’ve also

decided that we will look at a SADC fund, rather than just Namibia, built from Mauritius. We will be seeking mostly impact investors that want to use their money for good, while getting a return but also creating large social impacts.”

For this group of ambitious engineers, the sky is the limit.

AFRICAN EXPANSION Lithon already boasts a strong presence in Africa in Namibia, South Africa and Ghana. Its workforce of more than 30 professionals is split across these three regions with plans to expand aggressively in the coming decade. Grobler wants to use the Otavi Steel project as a case study for the company’s expansion on the Continues on page 22

www.enterprise-africa.net / 19

Our Firm’s locality, accessibility, efficiency and quality of service delivery to our clients, distinguishes us from the rest.

Dr Weder, Kauta & Hoveka Incorporated specialises in litigation, labour law, commercial law, corporate law, tax law and conveyancing. The Firm currently operates from offices in Windhoek, Ongwediva,Swakopmund and Grootfontein respectively.

The Firm is widely respected and recognised for its professionalism and excellence in service provision. www.wkh-law.com

INDUSTRY FOCUS: ENGINEERING

Continued from page 19 continent, hoping that European partners will see the fantastic opportunities available.

“Our partner NORIC, who is in Africa for the first time, says that if we can nail this one then we can take it across the continent. It’s a scalable industry – wherever you have scrap you can put up a plant as it doesn’t make sense to export steel over long distances.”

Lithon’s African credentials are already starting to expand, making it the perfect business for infrastructural investors to investigate as they search for regional expertise in Africa.

Away from its core markets, the company is busy sealing deals in

22 / www.enterprise-africa.net

Nigeria, Kenya, Angola, Mozambique and Rwanda.

“We have signed a Memorandum of Understanding for a regional hospital for the government of Kenya. We are looking at projects in Mozambique and Angola where we are looking at special hospital projects. We are in discussions with financial brokers to arrange capital so we can start a medical fund for the construction of large-scale hospitals across Africa where there is a huge market.

Grobler reminds that African conditions favour businesses that can bring a turnkey solution. “In Africa, you have to go in, create a project, and bring the money,” he says. “That is why we are setting up the Lithon Impact Capital Fund. We will put in

// WE WANT TO BE AGENTS OF CHANGE

BY CREATING PROJECTS AND HELPING TO FINANCE THEM TOO // the seed capital and try and entice private capital from impact investors to see if it will be possible to start a project. For Africa’s future, my opinion is that private capital must be partnered with government.

That means you have to understand politics and economic conditions and look at countries where there is stability. That is why we have chosen

LITHON PROJECT CONSULTANTS

Kenya, and it is also why Tanzania is on our radar. Rwanda is also exciting and we are also looking to sign an MoU with Abia State in Nigeria state of Abia for a long-term project developing a new city. That is a very large project for which we will bring on board other companies and form a consortium. Our whole strategy is around collaboration and pairing with local companies and I believe that is the future of engineering.”

When Lithon has established itself

in Africa and has made real progress addressing some of the real human issues that exist on the continent, the next target is global expansion.

“We have developed a 30-year strategy which is split in two with the first 15 years focussed on Africa and the second half focussed on the rest of the globe. Personally, I have no plans for retirement or anything like that, I have warned the team that they are stuck with me for at least another 30 years while we work

through this strategy,” Grobler laughs.

As he continues to develop the company, he is also busy developing himself so that his dream of making a significant impact in the lives of people can become more of a reality.

“I’m busy with my Masters in Development Finance and my thesis will be on the impact of urbanisation on human development. This is a passion for me – I believe the only way we can build Africa is when the private sector partners with government.”

Lithon is more than a company simply driven by commercial success.

Adriaan Grobler has successfully installed a belief that by helping others solve problems and making a difference in their lives, you can address the need for social upliftment while achieving business success. The Otavi Steel Plant project is a perfect example. Creating jobs, driving trade, and making a difference in the lives of many Namibians.

WWW.LITHON.COM

Basil Read Husab Road

www.enterprise-africa.net / 23

TECHNICOLOUR

Bloemfontein Body Shop

Still in Pole Position After 25 Years PRODUCTION: Manelesi Dumasi

Damian Esterhuizen joined the family auto repair business as a youngster and - with the help of an expert team - has helped to mastermind its growth, realising significant expansion over the past quarter century. Today, Technicolour repairs vehicles for players and staff at the region’s major sports clubs as well as a host of other customers. Esterhuizen is planning expansion out of the Free State and into KZN and the Eastern Cape, before looking into Uganda and Botswana.

//

‘Is your battered car bruising your ego?’ asks Technicolour, Bloemfontein’s premier autobody repair centre. If the answer is anything but no, you can rely on this award-winning business to help.

From dent removal and accident repair through to diagnostic measuring, wheel and tyre repair, spray painting, and polishing, Technicolour has honed its craft to become critical in ensuring the ongoing performance and health of its client’s vehicles.

Founded in 1994, Technicolour

is celebrating its 25th anniversary, an achievement which very few companies manage to reach. But instead of looking back at its past, Managing Director Damian Esterhuizen is looking forward, planning an expansion strategy that will see Technicolour launch new services and grow in new provinces.

“The first thing that we are targeting is expansion in Kimberley, which is around 150km west of our head office,” he tells Enterprise Africa.

“There is a lot of opportunity there as we have a large client base there

already. Around 20% of the cars that we fix here in Bloemfontein are from Kimberley. We are starting to facilitate deals where we adopt other workshops like ours and we teach them how to operate businesses in the same way we do, creating a partnership.”

This franchise-type model allows Technicolour to sidestep the investment of large start-up capital and inherit existing client bases. Esterhuizen is also happy that this model does not risk employment in competitor organisations. “For us to set up facilities

www.enterprise-africa.net / 25

INDUSTRY FOCUS: AUTOMOTIVE

// WE ENSURE WE ARE ALWAYS THOUGHT ABOUT SHOULD ANYTHING GO WRONG WITH THE CAR // and separate businesses would result in the closure of existing businesses and us taking staff members, and that is not what we want to do.”

Esterhuizen, who has been involved in the family-run business since he was a child, is also keen to

see Technicolour expand in the south and east, with plans for partnerships in East London and Margate where he has already identified ‘potential suitors’. Growth at home in Bloemfontein is also important and the company will continue to search for suitable businesses to strike deals with in the market where it is industryleader. “We will make moves one at a time rather than spreading ourselves too thin. The bigger metros are very saturated – there are thousands of companies competing which makes the margins very poor. We would prefer to stay out of those markets

where we can,” says Esterhuizen.

Technicolour even has plans for expansion outside of South Africa and Esterhuizen sees potential in Uganda and Botswana, where his partnership model could offer great assistance for local businesses. “We have a business partner who has identified opportunities in Uganda and Botswana. We have a lot of enquiries about our business model from those two countries but first we want to ensure we are well-established in South Africa. We would certainly be interested in getting into Africa as there is money to be made there,” he says.

Jacques Strydom Boerdery Proudly Supporting Technicolour  admin@jsboerdery.co.za

26 / www.enterprise-africa.net



051 430 1011



PO Box 1035, Bloemfontein, 9300

TECHNICOLOUR

CERAMIC PRO As well as delivering traditional services that have helped build Technicolour’s name over the past 25 years, the company has started offering a new service which can help to protect vehicles even further.

Ceramic Pro is a paint protection product that can be added to vehicles and guard against scratches, dust, weather, and many more potential hazards. Technicolour is currently the only autobody shop, across all regions where it is present, to supply this valuable product.

“We brought it into the company around four months ago – a ceramic nano-coating that we apply to cars after repairs,” explains Esterhuizen.

“It locks in the work and protects from UV, small scratches, rain, dust, tar and other elements. We’ve launched it as an upsell product on all cars that we

fix. Currently we fix around 250 cars each month and we are looking for the next thing for our clients to maintain the look of their cars. We are launching with Toyota and Mercedes-Benz in Bloemfontein, where the coating will be sold as an option on new cars. Only we can do this coating in our province and if the car is in an accident, it drives business to our shops as it will have to be with us to be recoated.

“As of November 1st, we have someone at the Toyota dealership and the product will be offered to clients on all new vehicles sold. We are already doing around 35 cars each month and that is impressive as it is not a cheap product, costing R10-20,000.”

By introducing products like Ceramic Pro to add to its impressive service portfolio, Technicolour is ensuring its name is always at the industry’s forefront for anyone with

vehicle upkeep in mind. This is managed through always delivering for the customer, says Esterhuizen.

“The problem in our industry is that only 30% of the vehicles on the road are insured and the cost of repair is very high. That means the competition for insurance work in our industry is big. We have gone a different route and focussed on the client and the service the client can get from us, not only for repairing a vehicle but also looking after a vehicle.

We teach clients how to wash their car, we sell the soap, we coat the paint with Ceramic Pro, and we ensure we are always thought about should anything go wrong with the car. We are actively out there, always looking for business – that is the only way to survive. The result is that we have had gradual sustained growth that I could never complain about.”

www.enterprise-africa.net / 27

INDUSTRY FOCUS: AUTOMOTIVE

// WE ARE ACTIVELY OUT THERE, ALWAYS LOOKING FOR BUSINESS – THAT IS THE ONLY WAY TO SURVIVE // HISTORICALLY PROBLEM SOLVING The growth Technicolour has achieved has been remarkable considering the company’s founding. Esterhuizen’s father founded the business in his garage as more of a hobby-project without major funding or backing.

Today, Technicolour is recognised for a quality approach to everything it does.

“My father worked for a paint supply company and he provided products to this type of business,” explains Esterhuizen. “He spent a lot of the time around similar companies and at one point he got tired of working for a boss and he started his business inside our garage at home.

I was involved since I was around 10 years old and we worked from the

28 / www.enterprise-africa.net

garage for about two or three years before we expanded and gained more work and needed a premises.”

Before getting involved in the car market, Technicolour was known for expertise with motorcycles and smaller vehicles. Eventually, the focus switched to cars.

“We opened our new facility and focussed on the dealership market as dealership vehicles, especially second hand, were not well looked after at the time. We entered the market by providing a high-quality service for second hand vehicles so that when they got to the showroom they looked fantastic and sold quicker. We offered a range of services from spray painting, polishing, and

minor repairs. We built on that by creating relationships with insurance companies and gaining manufacturer approvals, and the business grew.”

In 2015, Technicolour was named ‘Top Regional Panel Beater’ at the Discovery Insure Partner Awards.

In 2016, the company was named the winner at the Auto Body Repair Centre awards for Mercedes Benz; and in 2017 gained first place in recognition of outstanding service delivery by Telesure.

Esterhuizen has taken all that Technicolour does well and is using the lessons learned to drive business by helping others.

“A side project for us is consulting in businesses that are

TECHNICOLOUR

not in our industry and might be in trouble because they are out of control. We go in and offer support and education when it comes to controlling business,” he says.

“One of the main problems we have in the country is that entrepreneurs are very scarce.

Not many people start their own businesses and those that do have little knowledge or experience and businesses often fail – that is a big problem for us. In our industry, we have hundreds of shops opening and closing, and with our plan we hope to facilitate growth for small, ownermanaged businesses so they can learn how to grow their businesses and run them effectively. We believe that we can then create a network of businesses using our model and those businesses can then go on and help others, brining benefits to everyone in the chain.”

This approach has been widely welcomed by partner companies and local communities where Technicolour involvement has resulted in the sustainable performance of existing businesses.

“We learn from other businesses and we take our skills from this business and share them with others.

It’s all about keeping us sustainable in the future. It creates a nice network for us and positions us as a company that helps its local community and invests in its growth,” says Esterhuizen.

FUTURE PROOFING Looking to the future, Esterhuizen is not resting on laurels and will certainly not be allowing economic worry or political turmoil to impact on Technicolour’s path.

“We don’t wait on business and wait for clients to approach us. I don’t share the views on negativity in the economy – I see it as opportunity as there are problems to solve. We are solution seekers and we try and solve problems for a wide variety of people,” he says.

// WE ARE SOLUTION SEEKERS AND WE TRY AND SOLVE PROBLEMS FOR A WIDE VARIETY OF PEOPLE // The Director is well-versed in economic highs and lows and has, for a quarter century, seen his business ride the waves. “It has been tough and the future will be different with a lot of Chinese auto business coming into the market. There is a lot of opportunity if things are done right but we will wait and see how things progress over the next two years.”

Continued success will be driven by the companies highly-skilled workforce. Technicolour is proud to say it only employs the best panel beaters and paint specialists, and creates an environment where staff are allowed to make decisions that help solve problems. This empowered approach has resulted in a high level of loyalty.

“I try and create an environment of growth as I have found that when people are growing they don’t leave,” details Esterhuizen. “When people are well trained and they stagnate, then they tend to leave.

Our business model over the past few years has been based on the Toyota business model where we focus on continuous improvement daily and we understand that a percentage

improvement per week means a 52% increase over a year. We like smaller, incremental improvements rather than trying to fix everything all at once. Because we do that, we have consistent learning and consistent involvement of the staff where they are involved with problems and come up with solutions – they have a lot of say in our processes. We have three staff members who have been here for more than 20 years and several others with more than 15 years’ experience.”

This experience drives customer retention and builds a brand that is recognised for excellence. From the 7000m2 centre in Bloemfontein, Technicolour looks set to become one of the country’s most widely respected body shops, and with Esterhuizen sharing business knowledge and expertise with others, the South African driver should never be too far from a skilled shop. ‘Is the luxury glow beginning to fade?’

– not at Technicolour.

WWW.TECHNICOLOUR.CO.ZA

www.enterprise-africa.net / 29

TRANSCOR

Making Safety, Reliability and

Prompt Delivery the Norm PRODUCTION: Timothy Reeder

Transcor is a stalwart of the South African transportation industry, operational for more than 30 years with a fine reputation having been established along the way. Trancor specialises in the moving of abnormal loads, including a major portion of all the earthmoving equipment which traverses sub-Saharan Africa. www.enterprise-africa.net / 31

INDUSTRY FOCUS: AUTOMOTIVE

//

While its roots are proudly and undeniably South African, Transcor really does provide a service that knows no bounds. Borders are no obstacle to this industrydefining abnormal load mover, as it has increased its scope beyond South Africa through Zambia, Zimbabwe, Botswana, Namibia and the Democratic Republic of Congo (DRC).

When it comes to moving abnormal loads, one of the principal challenges is that no two jobs are identical. Handling and efficiently moving loads that are high, wide, long or heavy requires specialist equipment, knowledge of the rules and regulations and superior driving skills, all underpinned by exceptional project management.

At Transcor’s disposal is a professional and comprehensive range of transport services, combined with a highly experienced team, which ensures

32 / www.enterprise-africa.net

the safe, reliable and prompt delivery of all loads to the intended destination.

“Transcor must supply a fast, efficient, reliable, safe and cost-effective service,” is the summation of Founder Peter Barnes, and the company time and again shows itself capable of fulfilling this brief to the highest standard.

DEFINE ABNORMAL One of the most commonly-asked questions which arises among newcomers to this industry is exactly what abnormal transport refers to. In short, it is the movement of those loads that exceed the legal limit in their mass and dimensions, and that cannot be dismantled into units that are legally permitted to be on the road.

In South Africa, this translates to a truck or semi-trailer length which cannot exceed 18.50m, while the length of a Superlink cannot be over

// TRANSCOR MUST SUPPLY A FAST, EFFICIENT, RELIABLE, SAFE AND COST-EFFECTIVE SERVICE // 22m. The width must not be more than 2.70m and the height restrictions are 4.30m from the ground. Section 81 of the National Road Traffic Act (NRTA) lays out the conditions under which abnormal transport is permissible, however, and states that if the movement of abnormal units is beneficial to the economy, such loads are eligible for an exemption permit.

Likewise, if the transportation of an abnormal load will advance in some way the social interests of South Africans, an

ABNORMAL TRANSPORT South Africa and Cross Border

9 Wessel Geldenhuys Street, Brackenfell, Cape Town

Vosma Vervoer is a dynamic, privately owned Abnormal Transporter based in Brackenfell, Cape Town. Vosma Vervoer is renowned for a professional and modern business approach with Customer Satisfaction being our main focus. Vosma has a solid infrastructure with highly qualified operational and admin staff. With more than 22 years experience in transporting freight and abnormal loads for the industrial, mining, construction and agricultural sectors

Quality and service is not an option, but a necessity to survive and thrive in an environment of global competition. We aim to provide total customer satisfaction that will lead to customer loyalty.

We always deliver on time.

Projects Done over the Past Few Years • • • •

KHI – Solar plant Upington – Over 1000 loads Kaxu – Solar plant Pofadder – 200 Abnormal loads Moved Sarens Tower Crane to KHI, Upington – 50 Abnormal loads.

Moved temporary GLA Crawler Crane to upington – 30 Abnormal loads

• • • • •

Solar Plants De Aar and Droogfontein, Kimberley – Transport of R35m worth Electrical Computer rooms.

Sere Wind Farm Koekenaap Mad Max Movie from Namibia to South Africa Sishen Solar Farm – 50 Abnormal Loads Black Mountain Aggeneys – 100 Abnormal Loads

Please contact us for all your transportation needs: Abnormal Long Distance / Local Transport, Escort Vehicles, Projects, Tri Axles, Extendables, Stepdecks, Lowbeds, 100 Tonner Loads, Tautliners and Container loads. www.vosmavervoer.co.za 021 982 4203 SW - 082 454 4867 sw@vosmavervoer.co.za Frikkie - 079 886 9330 frikkie@vosmavervoer.co.za

www.vosmaafrica.co.za 021 981 9628 JP - 064 850 8935 jp@vosmaafrica.co.za Ruan - 076 812 1251 ruan@vosmaafrica.co.za

INDUSTRY FOCUS: AUTOMOTIVE

// FEW PEOPLE ARE AWARE OF THE FACT THAT SOUTH AFRICA HAS THE 10TH LARGEST ROAD NETWORK IN THE WORLD // exemption permit may be granted to allows the load onto public roads within a specified period and under certain conditions. Once the permit is obtained, the transport becomes legal as long as there is no additional risk to other road users, a risk which Transcor is expertly placed to mitigate.

Abnormal load transport is perhaps most commonplace in the mining and construction industries, where specialist and extremely bulky machinery is often required. It is also frequently employed

34 / www.enterprise-africa.net

in plant and crane hire. To safely carry out the transportation of heavy loads, drivers and drivers’ assistants are required, as well as escort drivers and yard assistants.

GREAT NETWORKS Greatly helping Transcor’s bid for dominance is the excellent surfaces on which its specialists vehicles make their rounds. According to The Oxford Business Group’s ‘The Report: South Africa 2014’, South Africa has some of the best road and rail networks around and, most certainly the most extensive road and rail network in Africa.

Chapter four of the National Development Plan (NDP) calls for the development of economic infrastructure as the foundation of social and economic development, an efficient, competitive and responsive economic infrastructure network. Transport infrastructure and services support economic growth

and development by connecting people and goods to markets. The development and maintenance of an efficient and competitive transport system is a key objective of the NDP, and obviously enormously advantageous to Transcor as well.

Despite concerted efforts, however, to bring in an effective law enforcement strategy by the road and traffic authorities, the sharp increase in heavy vehicle traffic and the effects of overloading do continue to be a major problem on South African roads.

Overloading causes premature road deterioration, which brought about the formation of the Road Transport Management System (RTMS). A selfregulation initiative, outstanding results have already been witnessed since its implementation.

RTMS is an industry–led, government-supported scheme that encourages road transport operators to implement a management system

TRANSCOR

which contributes to preserving road infrastructure, improving road safety & increasing productivity. By becoming RTMS-accredited Transcor has therefore demonstrated that it pays due consideration to road safety, compliance and operational risks, and that it poses a minimal risk to the road infrastructure, the environment and other road users, as well as taking care of its drivers.

With Transcor clearly doing its significant bit to preserve the country’s excellent roads, roadbuilding and maintenance is the direct responsibility of the South African

// IT’S TIME FOR SOUTH AFRICA’S ROAD FREIGHT INDUSTRY TO JOIN THE 21ST CENTURY //

National Roads Agency (Sanral).

Sanral is responsible for the country’s network of national roads, which cover around 16,200km, and for the design, financing, maintenance, operation and rehabilitation of South Africa’s national toll and non-toll roads.

According to Sanral, the total number of kilometres of paved roads within in SA is 158,124km, 21,946km of which is under the care of Sanral.

There are 459,957km of gravel roads and 131 919km of un-proclaimed gravel road, which are not formally owned by any authority, combining for a total close to 750,000km of roads in South Africa. “Few people are aware of the fact that South Africa has the 10th largest road network in the world,” says Arrive Alive’s Johan Jonck.

With the country’s network in better shape than ever, now could be the time to fully harness the power of technology within the freight industry.

Linebooker has launched an online

bidding platform that connects bulk business transport customers and trucking companies through an online bidding platform, where customers can quickly submit load requests online to alert multiple transporters who can then provide the best bid.

“It’s time for South Africa’s road freight industry to join the 21st century,” concluded Naudé Rademan, MD of CCS Logistics and Linebooker to BizCommunity. “Technology exposes the imbalanced relation between buyers and sellers, and with our online tools and a single point of service, customers can enjoy more control and insights over the transport of various goods and products.”

WWW.TRANSCOR.CO.ZA

www.enterprise-africa.net / 35

GRW

At the Cutting-Edge of

Tanker Technology PRODUCTION: Benjamin Southwold

GRW is a leading South Africa-based transport equipment designer, manufacturer, and service provider of a wide range of quality tankers and trailers. As its product line has grown, so too has its global reputation and footprint, with operators in vital outposts the world over. www.enterprise-africa.net / 37

INDUSTRY FOCUS: MANUFACTURING

//

GRW was founded in 1996 after its founders - Gerrie van der Merwe, sons Gerhard and Wentzel and long-time family friend and associate Roussouw van Eeden found that existing manufacturers of road-tanker transport were producing inferior models.

In its infancy GRW built tankers for the wine industry but now, following the application of technology, innovation and teamwork alongside a highly-skilled workforce, GRW is the industry leader and widely known as one of the best tanker manufacturers in the business.

Its product range has grown markedly along with its reputation; today, customers can acquire anything from fuel tankers to flat deck trailers, and from specialised liquid tankers to refrigerated trailers. “We believe that our success lies in our uncompromising

38 / www.enterprise-africa.net

// WE SEE OURSELVES AS A GLOBAL COMPETITOR MANUFACTURING IN AFRICA - WE COMPETE WITH THE VERY BEST IN THE WORLD // approach to quality on the production floor,” says GRW. “Our products are manufactured in an ultra-modern facility with automated welding procedures and state-of-the-art equipment, which provide for perfect alignment and dimensions.”

GRW’s main hub is its Worcester manufacturing complex, where expert engineers deploy the finest technologies and procedures in the

vast ultramodern production facilities to produce world-class trailers. Each one is specifically configured to meet the unique transportation needs of individual customers.

From construction and mining to petroleum and chemical, fastmoving consumer goods to perishable temperature-controlled goods, or palletised goods to break-bulk general cargo GRW is committed to enhancing the productivity of its customers across numerous industries.

BULL RETURNS To great fanfare, GRW Trailers has launched the next generation of its tautliner trailer series, the Inkabi 2.0. Inkabi is Zulu for bull, and here is employed to show the sheer strength of the model, with the new iteration building on the experience gained with the original version launched in March 2015. The

DISTRIBUTORS OF

The Energy Business of JBT South Africa is a specialized business that is concentrated in custody transfer measurement systems. JBT South Africa’s partnership with TechnipFMC Measurement Solutions and TechnipFMC Loading Systems in Southern Africa has resulted in an unequalled solutions orientated provider to the oil industry in the region. As a world leader in flow measurement and control of petroleum products since 1933, today’s TechnipFMC Measurement Solutions delivers technical superiority with a complete range of liquid and gas custody transfer solutions.

By combining the strengths, capabilities, and experience acquired over many years with a diverse product offering, JBT in South Africa is able to provide a broad range of solutions complemented by application engineering, installation, commissioning and after-sales support in all segments of the petroleum industry that we serve.

Through it extensive product lines, including its highly esteemed Smith Meter® and Sening® heritage brands, TechnipFMC sets the standard for petroleum supply chain management. TechnipFMC accurate and reliable measurement solutions make the daily routine of petroleum product transportation and delivery faster, safer and more economical. Proper systems design is essential for accurate loading and unloading of straight and blended refined products at the Terminal. TechnipFMC products and systems provide the ultimate metering solutions for all liquid products, such as: • Multiflow, Flow computer • Vapour recovery • API Couplings • Discharge valves • Multiseal Sealed Parcel delivery systems JBT South Africa recognizes the critical importance of maintaining accurate measurement to ensure fiscal accountability.

Whether the requirements are on-site commissioning, planned maintenance programmes, or refurbishment assessments, JBT South Africa is able to assist.

Branches: Cape Town : (021) 982 1130 Johannesburg : (011) 422 2290

Director Measurement Solutions: Kevin Jamison kevin.jamison@jbtc.com

Account Manager: Stephen Pelser corne.stapelberg@jbtc.com

SUPPLIERS OF TANK TRUCK METERING, SEALED PARCEL DELIVERY SYSTEMS, TANK TRUCK FITTINGS AND TERMINAL MEASUREMENT SOLUTIONS

One device for all your purposes

Sening MultiTask®

GPS-based monitoring system: • Event Logbook with Geo-coordinates • Position reporting via GPS • Safety • Reliability • Flexibility • Efficiency • Intuitivity • Communication • Monitoring Product Information: www.technipfmc.com

INDUSTRY FOCUS: MANUFACTURING

second coming features many advanced design elements from GRW’s new partner, the aptly named German trailer manufacturer Schmitz Cargobull (SCB).

Key among these is the use of the SCB bolted technology. Instead of welding, the assembly of the entire chassis and all other functional components is bolted, unique because its splined section shears through both bolting surfaces, which means there is no need to secure the bolt head during fastening.

The hole diameters have a very small tolerance ensuring accuracy and a tight fit, and the bolted assemblies offer superior fatigue life over welded assemblies.

According to GRW CEO Gerhard van der Merwe, this bolting technology will be applied across the GRW product range as it allows for dissimilar materials to be joined, which responds to a key component of the Inkabi 2.0’s design: modularity.

“Modularity allows for scale-ability,” van der Merwe clarifies.

40 / www.enterprise-africa.net

“These bolted structures can be economically assembled in other locations. Modularity with bolted technology also ensures accuracy, as all of the components are manufactured in high-precision jigs and welded robotically.”

Various models of the Inkabi 2.0 will be available, while customers will have aces to a range of specification options from which to choose. Just

some of these are an overhead loadsecuring system to easily securing of high loads, rear doors and inter-leading doors for through loading and a GRWdesigned adjustable racking system.

“The best word to describe the Inkabi 2 compared to Inkabi 1 is ‘more’,” says van der Merwe. “More payload, more options, more money in your pocket, more peace of mind, more aftersales and service offerings.”

GRW

GLOBAL LEADERS With operators across Southern Africa, the Middle East, Australia, Europe and the United Kingdom, GRW’s expertise extends well beyond the production line. The company has once again shown that South African outfits can reach the highest levels of excellence on the global stage, via investment into the company by Europe’s largest and most renowned trailer manufacturer.

It is fairly rare in the manufacturing sector to read of an overseas company investing into a local, home-grown South African organisation; with Schmitz Cargobull AG acquiring 33% of the shares in GRW Holdings (Pty) Ltd in August 2017, the trend was officially bucked.

This development is a huge milestone in the progress of GRW as it seeks to consolidate its presence on the world stage. It also speaks volumes of the ability of South Africans to engineer and design products that serve to attract the best in the world

- this is a huge accolade not only for GRW but also for wider South Africa’s manufacturing capabilities.

“We find a lot of negativity towards Africa when dealing with foreign people,” states van der Merwe. “While we are a proudly African business, we are often perceived as a Third World company, which we are certainly not. People often don’t realise how professional we are until they come visit us and see what we are all about.

“We see ourselves as a global competitor manufacturing in Africa.

We compete with the very best in the world, which in turn gives us an advantage in the local and African market – not the other way around.”

The benefits to GRW are clear; not only does it give the company access to all the latest technology coming out of Europe, but it also opens up markets through Schmitz Cargobull’s extensive footprint in Europe, Eastern Europe and Russia where the company has 440 sales points, while it produces a

colossal 59,000 trailers per year.

This somewhat dwarfs GRW’s current 1400 per year rate which, van der Merwe says, they plan to more than double, rising to 3000 per year within a three-year window. He also hinted at the building of another manufacturing plant in the Gauteng area, which would serve to greatly solidify GRW’s presence in its home country.

For Schmitz Cargobull, on the other hand, suddenly the tanker market will be opened up for them in Europe - as it stands the company does not manufacture tankers, whereas GRW certainly does and its quality is globally accepted to be among the best. The obvious synergies between and multiple benefits to both companies make this deal, and the future of the partnership, well worth keeping a close eye on.

WWW.GRW.CO.ZA

www.enterprise-africa.net / 41

RETRACTALINE

Hanging High

atop SA’s Manufacturing Industry PRODUCTION: Karl Pietersen

Durban-based Retractaline is underway with an aggressive expansion programme that will see the iconic South African laundry and homeware brand strengthen its industry-leading position. After moving into a new facility at Dube TradePort, the company is now looking to expand its product range and restart its export operation, while always manufacturing to the highest international standards.

//

Last month, Enterprise Africa delivered the story of Dube TradePort and its remarkable journey from greenfield development project to one of South Africa’s key trade gateways.

The area is now home to a number of very exciting companies from agriculture, logistics, technology, hospitality, manufacturing and more.

It is a region that drives the wider local economy and brings prosperity to KZN. One company that realised the potential of the Dube Special Economic Zone, and moved in to take advantage, is Retractaline – South Africa’s iconic laundry care product manufacturer.

Founded in 1985 as a one-manband, it took Retractaline a decade

42 / www.enterprise-africa.net

to hit the fast lane. In 1995, when current Owner and Managing Director Chris Frost purchased the company, Retractaline transformed from a garage operation to become one of the country’s leading manufacturing organisations, supplying products to customers across southern Africa.

24 years ago, Retractaline was operating out of a 180 m2 space in New Germany, on Durban’s outskirts.

When Frost took the business, manufacturing was split between SA and China. He went about establishing relationships with new customers and Retractaline began to grow, carving out an industry-leading position in its niche market. But, then came the 2008 global financial crisis and business

became challenging for everyone, in all parts of the world. Retractaline halted its export programme and Frost analysed operations realising that manufacturing in China was not as cost-effective as it had previously been. In 2014 he decided to move all manufacturing back to South Africa and quickly began the search for a new location. After initial frustration, Frost discovered the opportunity at Dube TradePort, north of Durban, and set about building a dedicated 4400 m2 facility from which Retractaline could grow.

“I was semi-retired but when the expansion project began, I started working full-time again, travelling around the world sourcing new

INDUSTRY FOCUS: MANUFACTURING

machinery, overseeing the construction of the new factory, planning new product development and remaining very hands on with the business,” he tells Enterprise Africa.

The expansion project was challenging but enjoyable and you get a lot of personal pleasure seeing a vision become a reality.”

BRINGING BUSINESS BACK Many products stocked by South Africa’s retailers are imported. Locally manufactured goods that meet international quality standards are now uncommon. But, for Chris Frost, this is not right.

“I have no doubt that part of the solution to some of South Africa’s socio-economic problems will come through the stimulation of manufacturing. It’s a long-term job creator and skills enhancer,” he says.

One of the main drivers behind his decision to invest into a new facility was so that local retailers could source quality, locally manufactured goods for their local customers.

“The move was linked to the whole growth strategy through which we aim to go on an import replacement drive by expanding our product range to be able to offer the stores products that they are currently importing from countries in the Far East,” he states. “We are also looking to grow our export business. Part of that is to reverse integrate our manufacturing processes and bring everything in-house. To achieve that, we needed a new factory facility. We looked all over the market and Dube was attractive because of its Special Economic Zone status which comes with certain tax benefits for manufacturing entities. We acquired the land and commissioned a custom designed facility for our requirements.

The build took around one year and was split into two phases. Phase one began in 2015 and included the first two buildings, and phase two was started in 2017 with the two more buildings completed.

“It’s been relatively smooth with only the regular teething problems that come with new processes. Everything

is working as planned and we now have the ability to be internationally competitive against the East, and to improve production output with a wider product range.”

Funding for the new factory came from international venture capitalists and resulted in Frost sharing a stake in the business. “I owned 100% of the business prior to the expansion and I managed to get a venture capital company to invest into the business in return for shareholding and provision of credit facilities in terms of development financing for the buildings and plant and machinery.”

He highlights the investment as a shining example of how foreign funders are still keen on SA as a manufacturing investment destination when a sound business plan is presented.

“A lot of SA manufacturing work has been replaced by Chinese imports. If you look at any retail store in SA, a great percentage of what is on the shelves is currently imported from the likes of China and Europe. This means there is a lot of opportunity for South Africans if they can invest in plant, equipment and technology to become internationally competitive. The bottom line is if you can improve on imported standards and offer competitive prices, the stores will buy from you because you’re local, there are shorter lead times, they don’t have to order such volume, they don’t have to order as regularly, and you can offer in store merchandising services.”

NEW PRODUCTS, NEW CHANNELS Retractaline’s focussed approach to business development and quality has seen it rise to claim enviable market share across the categories in which it operates but Frost is keen to continue growing and is looking at new products and new routes to market to keep the company developing.

“We dominate the South African market with around 80% share,” he states. “We split our range into five categories: retractable clotheslines, rotary clotheslines, wall-mounted

44 / www.enterprise-africa.net

RETRACTALINE

// THE BOTTOM LINE IS IF YOU CAN IMPROVE ON IMPORTED STANDARDS

BY OFFERING COMPETITIVE PRICING, THE STORES WILL BUY FROM YOU BECAUSE YOU’RE LOCAL // folding clotheslines, folding airers, and ironing boards and accessories.

We don’t dominate with 80% market share in each of those categories, but we are growing rapidly. In retractable clotheslines and rotary clotheslines, we probably have more than 80% market share but in ironing boards, where a lot is still imported, we probably have 5-10% share. Our goal is to dominate the retail market and be the brand of choice across all categories.”

Currently, Retractaline products are found in some of the country’s major retail stores including Builders Warehouse, Brights Hardware, Bu Co, Game, Makro, Mica Hardware, Takealot, Russells, Pick n Pay, Burmeisters and more.

In the future, Frost expects online retailers to play an increasingly important role in the distribution of Retractaline products.

“There is a lot of growth in ecommerce, not just in South Africa,” he says. “Amazon is a disruptor to the traditional brick and mortar retailers and that is no different here. We are seeing big growth in ecommerce whereas traditional retail has slowed significantly. There are some new entrants in the traditional retail market with various players opening up stores, so the future is not just about the big chain stores.”

On the product side, Frost explains that the company will

stick to its laundry theme when introducing new homeware ideas.

“We have started with self-assembly wardrobes, we are making shoe racks, and there is a lot of product development ongoing. We launched the self-assembly wardrobes last year and they have been phenomenally successful, growing to become roughly our third biggest selling item across the range in a short space of time.

“In our market, not every home comes fitted with cupboards. With our product, you can walk into your local store and pick up a self-assembly wardrobe with steel tube and plastic components for not a lot of money – it meets a niche. We also expect our shoe racks to be pretty popular too.

We have grown from one product to now having more than 60.”

RETURNING TO EXPORT As manufacturing in South Africa, and product development at Retractaline, continues to pick up, the company will look to restart its export business. The first targets will be established markets through established online channels.

“We exported into Europe via Ireland for ten years but that ended with the 2008 financial crash. We’ve been growing so rapidly locally that the international focus tapered but in 2019 we will be expanding that and we have set up stores with Amazon UK, USA and Australia so we will go direct through the online route,” says Frost.

Next, Retractaline will aim for continental growth by teaming further with its existing customers that have a strong African presence. For example, the many brands owned by Walmart (including Massmart, Builders

SPECIALISTS IN INDUSTRIAL FASTENERS AND TOOLS We are your specialist supply partners, complemented by a professional team  More than a 100 years combined industry experience  Local & International network of suppliers to source difficult to obtain fasteners  Service delivery that meets our customer’s needs  Sales people that care for their customer’s businesses COMMITMENT • RESPECT • INTEGRITY • CARING

www.boltlink.co.za • 031 579 3144 sales@boltlink.co.za

www.enterprise-africa.net / 45

INDUSTRY FOCUS: MANUFACTURING

Warehouse, Game etc) are present across Southern Africa and act as the perfect distribution channel for Retractaline.

“We will deliver to a distribution centre in South Africa and they will deliver to their store network around Africa at their risk. For an independent business, there is a lot of risk in Africa and it’s easier for the big retailers to manage,” admits Frost.

The challenge here is delivering the

46 / www.enterprise-africa.net

high-quality standards that international retailers expect, consistently.

“It can be challenging” says Frost “but I’ve been doing this for 27 years and you eventually get used to it. Everyone wants everything on their terms. They all want stock to be held so they can order at short notice and have products delivered quickly. They all want overstocks to be returnable and they want

rebates and advertising spend – it is a challenging environment, but the challenges are vastly outweighed by the positives. The payment record is impeccable as you’re dealing with blue-chip companies, and their reach is unrivalled.

“If you understand what they’re looking for - quality products at internationally competitive pricing with instant stock availability – and you can deliver that effectively then you will be able to grow significantly.”

But how can Retractaline deliver quality and innovation unfailingly?

According to Frost, all success comes from not needing to outsource, and that is because of the company’s fantastic staff base.

“We have around 100 people and as the employee base grows, it does come with certain challenges, but any manufacturing business has those issues to deal with and we are fortunate with the calibre of staff we pull from our community. All are educated but also quick to learn our culture is one where people are certainly keen to learn and grow.

RETRACTALINE

// IF YOU UNDERSTAND WHAT THEY’RE LOOKING FOR - QUALITY PRODUCTS AT INTERNATIONALLY COMPETITIVE PRICING WITH INSTANT STOCK AVAILABILITY – AND YOU CAN DELIVER THAT EFFECTIVELY THEN YOU WILL BE ABLE TO GROW SIGNIFICANTLY // “We have some technical and specialised processes from steel tube making, machining, CNC programming etc, and everyone has been trained in-house – we don’t bring in outside expertise. We have high staff loyalty and there are still a number of people with the company that have been here since day one. Many have had 15-year or 10-year service behind them. We always look out for people that fit our culture and have a strong team and work ethic.”

With this strong team, a widelyrespected brand, a quality product offering, and a new internationally competitive factory, surely there is not much that can stop Retractaline’s expansion?

“South African manufacturing has been decimated over the past 20 years in many sectors,” explains Frost. “I still like to see our customers and try and convince them to switch from imports to us, and that keeps me very busy.”

But it seems as though manufacturing could be showing some green shoots. In January, the Absa Purchasing Managers’ Index - a report from the Bureau for Economic Research at Stellenbosch University – showed that respondents expect business conditions to improve over the next six months. The index rose from 49.5 in November 2018 to 50.7 points in December 2018 – it’s highest since July 2018 – signalling growth in the

sector. The report indicated that sales orders are outstripping inventories but highlighted the fact that a sustained recovery in demand is required before a meaningful recovery in manufacturing output, investment and employment can take place.

Frost agrees, saying: “There is a lot of positive talk and when I decided to do the expansion, sentiment was probably at its most negative. People told me I was crazy. But I thought that the right time to invest was when everyone was running. Since then, especially under current leadership, there has been a lot more positive talk about job creation in manufacturing. At this stage, it’s still a lot of talk and not much is transpiring into actual projects, but the sentiment is right and we should see talk become action.”

WWW.RETRACTALINE.COM

www.enterprise-africa.net / 47

POISON CITY BREWING

Poison City Flying High Following Release of SA’s First Cannabis Beer PRODUCTION: David Napier

KZN-based Cannabis Beverage Company, Poison City Brewing claims it has created ‘Durban’s kiffest beer’ – South African surfer slang for ‘coolest’. And it seems like many of the country’s beer drinkers agree. In October 2018, the company released the country’s first beer containing cannabis – Durban Poison Cannabis Lager – and demand has since outstripped supply every month. Enterprise Africa talks to Poison City Brewing Co-founder, Graeme Bird about this beer-Cannabis combo and what we can expect from the exciting business in the future.

//

One of Durban’s most exciting brands is taking something we all know and love – the classic lager – and giving it the Durbs treatment by introducing a new ingredient – cannabis. You’ve probably heard of the story coming from Poison City Brewing, a Cannabis Beverage Company that initially kicked off with craft beers, based just north of the city centre.

By adding de-husked hemp seeds to the brewing process - along with the traditional beer making ingredients of hops, barley and water – Director of Poison City Brewing, Graeme Bird says that the taste of Cannabis Lager is

unrivalled, encapsulating what Durban is all about.

“Hemp and hops form part of the same plant family called Cannabaceae,” he tells Enterprise Africa. “Essentially, they both have very similar characteristics and you can brew with hops or hemp but the more common way to do it is with hops. If you do add hemp or any form of cannabis flower, you get similar taste profiles to what you would get from hops.

“Durban Poison Cannabis Lager, which has created the massive impact, is specifically designed and packaged as premium beer. A premium lager looks and tastes like a Castle Light, Windhoek Lager

or Heineken. Because we’re a small brand we can’t produce our beer at the same price as the large commercial brands.

Our price is more in line with imported premium beers like Stella Artois or Corona.

But we think our beer tastes better and it has the unique difference of being a Cannabis product, so the price difference is hopefully justified.”

Durban Poison will be the flagship product in the Poison City range, despite its popular craft beers being older and already distributed country-wide.

“It stands alone as our main market beer. It is a beer for the people, for everybody,” says Bird.

www.enterprise-africa.net / 49

INDUSTRY FOCUS: FOOD & DRINK

SMOKING HOT MARKETING The release of the new beer in 2018 came at the perfect time as South Africans began to recognise cannabis as a newly legalised product. In September 2018, the Constitutional Court made the landmark ruling to allow for the private consumption and growth of marijuana plants. It remains illegal to use cannabis in public and also supply and sell it.

The country’s ruling followed the lead of Zimbabwe and Lesotho which were the first African nations to legalise marijuana for medical use.

With the news a hot topic for politicians and news readers, Poison City became the first South African company to release a beer product that experiments with cannabis. Bird is quick to remind that the drink contains no Tetrahydrocannabinol, or THC (the primary psychoactive ingredient in cannabis that delivers

Graeme Bird - Director

50 / www.enterprise-africa.net

the ‘high’), and the de-husked hemp seeds are added to deliver the distinctive and refreshing flavour.

“For those that are concerned because of negative stigma or conservatism, we have from the beginning positioned our brand very boldly with the design of our logo. For us, it was a big step and we wanted to be the first. As it happened, our release date tied in with the ruling of the courts to legalise consumption of cannabis for adults in South Africa. That sparked massive interest in our product. There was luck in the timing, but we were of course very confident with the quality of the product,” says Bird.

“From a business perspective, it’s a marketing idea,” he adds. “Our future goal is to move into products where we make use of Cannabidiol (CBD) and THC. We can’t use them at the moment, so this is a step towards establishing

// IT IS A BEER FOR THE PEOPLE, FOR EVERYBODY // the brand in the sector. We are aware of and support the liberalisation of attitudes towards cannabis. We followed the ruling in the constitutional courts in South Africa closely and we were aware of the massive developments in the industry globally where people are successfully integrating cannabis into other products. Even in South Africa and other surrounding countries, there is a scenario where governments are moving quickly towards the legalisation of cultivation and trade of cannabis. It made sense to get into the market and the earlier we could get in the better.”

Hemp oil, hemp seed and other cannabis derivatives are widely

POISON CITY BREWING

Did you know...

In 2017, the average South African household spent 2.1% of its total budget on beer, that’s more than vegetables (1.5%), tobacco (1.9%) and sweets (0.7%)!

Beer was the most important driver of alcohol spending, with 54% of the total spend going on drink compared to just 25% on wine and 21% on spirits. used in health and beauty products (including skincare ranges), foods (such as chocolate), and even pet treats in the USA. Poison City uses the whole hemp seed with the crunchy outer shell removed during the mashing stage of the brew.

“We don’t actually use hemp oil, we use de-husked hemp seeds and we add it to the mash tun. Through the process of the boil and the brew, the oil is extracted. Much like the barley or any other sediment, the remainder falls to the bottom and we crop it so what is left is the liquid,” explains Bird.

“We are using beer as the first vehicle to get a cannabis product onto the market. Beer is the natural first step into the launch of cannabis products.

You’re not redesigning the product; all you are doing is using cannabis with hops rather than a total radical change.”

And Poison City Brewing know their beer. The company has been brewing since 2015 and, before the launch of Durban Poison Cannabis Lager, the company had established a popular range of three different products – The Bird (a light lager), The Punk Rocker (an English Pale Ale), and The Other Bird (a Czech dark lager).

More recently, the company also added The Poison Cannabis IPA (an American IPA), which is described as mellow, flavourful and unconventional.

“We have always been set up to get involved in the cannabis beverage sector but it was too early when we first

started in 2015. We started with craft beers and we’ve been making those beers for the past three years – They are our cornerstone range and they are not super-trendy flavoured IPAs or anything like that. These got us going in the market. As time progressed, and we started looking more seriously at the cannabis product, we brought out these new beers, an IPA and a lager. The IPA has a similar look and feel to our other three beers and forms part of the craft beer range.

“The craft range is more for people who are really into their beer, and that represents a much smaller percentage of people in South Africa,” Bird explains.

“The key to global markets is the USA and Canada, both having moved their cannabis legislation forward. Most first-world economies have moved quickly in that direction and that will open up avenues for us. We are also very interested in expanding our reach into Africa as there is certainly an appetite for it. The response from local South Africans, has been phenomenal. Our beer is flowing in township taverns and

ALL CHANGE The launch of the Durban Poison Cannabis Lager has been met with a fantastic response from the market and has helped Poison City Brewing founders - Bird and Andre Schubert - to report to their backers that the idea has been a success. Starting out in 2015, the pair found the same as many craft brewers – the market is extremely challenging.

“When we were focussing on our original craft beers, things were very tough,” admits Bird. “In South Africa, there is a hell of a lot of competition and we are in a very tough economic climate where people are spending less. Craft beer consumption in the country has gone backwards in the past year and that creates a tough position for anyone in the industry.”

But the pair saw the obvious gap in the market. Feelings towards cannabis are changing – not just in South Africa but all around the world. “Attitudes are swinging,” states Bird. “Canada is leading the way, the USA is following, and I cannot see European countries not following in that. Sooner or later, the whole world will embrace the change and we recognise that there is a need for legislative change before our final goal is reached but we think there will be a fantastic result for brands like ours as well as the health of society.

www.enterprise-africa.net / 51

INDUSTRY FOCUS: FOOD & DRINK

Andre and Paul Tasting

award winning restaurants in the plush suburbs. We’ve truly penetrated almost every level of South African society.”

RCL Foods CEO Miles Dally and Spar CEO Graham O’Connor are just two of the Durban-based backers that have thrown their financial weight behind Poison City’s ambitious plans as the opportunity grows.

“We will start with the beer and then move into non-alcoholic products,” details Bird. “We’ll never put THC into an alcohol product. We see this as the responsible approach. Having started with hemp, which does not have any psychoactive elements, we’ll start using CBD in non-alcoholic drinks before, in the longer term, producing nonalcoholic drinks with THC - that is the ultimate future. The consumer in today’s world is health driven and in Colorado there has been a 27% reduction in alcohol sales since the legalisation of cannabis so clearly, a lot of modern consumers are looking for alternatives as social drinks. Instead of someone drinking alcohol, which is definitely not

52 / www.enterprise-africa.net

good for you in excess, why not drink a non-alcoholic product with THC which is from a medicinal plant and get that euphoric high using a medical product.

That is the future.”

DURBAN AT HEART One of the drivers at the core of Poison City Brewing has always been to create a business that reflects the Durban and its

subtropical, seafront, laidback lifestyle.

Bird and Schubert are confident that they have achieved this vision, with Durban Poison only furthering the reach of the brand.

“Our objective was to establish a successful business while at the same time making Durban proud,” says Bird.

“We have created a product that is gaining a lot of attention for the city

POISON CITY BREWING

// THE RESPONSE FROM LOCAL SOUTH AFRICANS, HAS BEEN PHENOMENAL. OUR BEER IS FLOWING IN TOWNSHIP TAVERNS AND AWARD WINNING RESTAURANTS IN THE PLUSH SUBURBS. WE’VE TRULY PENETRATED ALMOST EVERY LEVEL OF SOUTH AFRICAN SOCIETY // we come from and we are happy with that. We know we have a long way to go, we are still in our early days, but the way things are going, we are on track

to achieve our objectives and create employment opportunities, stimulating our local economy.

“To put it into perspective, the volume of orders in the last few weeks outnumbers the total annual orders for all three of our craft products. It has opened doors everywhere. Our funders are ecstatic and everything about the business has changed. We’re moving forward at pace now.”

In November, the company confirmed that JSE-listed beverages group Distell has agreed to distribute and market Durban Poison following the launch of product, when demand considerably outstripped supply. The beer is already available in many chain retailers including Spar, Tops, Game, Liquor City, and a number of bars and pubs around the country.

Around the world, the major food and drinks businesses are starting to wake up to the reality that consumers are very interested in products that contain cannabis. The world’s largest brewer, AB InBev, said recently that

it was ‘keeping a close eye on the cannabis market’, and Constellation Brands, which makes Corona beers in the US, invested $4bn into a Canadian marijuana company in August.

The support of a corporate like Distell has only bolstered Poison City.

“The past few months have been incredibly motivating and invigorating,” laughs Bird. “It was tough when we focussed on craft only, but we were very proud of what we achieved because we could see that people loved the brand. Now that we have huge demand, it changes attitudes of everyone – suppliers, customers, neighbours – and we have seen an outpouring of appreciation. That creates fantastic motivation for all of us.”

WWW.POISON.CITY

www.enterprise-africa.net / 53

HEINEKEN SOUTH AFRICA

Brewing up With the

Perfect Recipe for Success in SA PRODUCTION: David Napier

Global powerhouse brand, Heineken is fully established in South Africa and is ready to push for increased market share. Onboarding new brands and investing heavily in talent, this local and international brewer is consistently focussing on quality to delight customers all over SA and sub-Saharan Africa.

54 / www.enterprise-africa.net

INDUSTRY FOCUS: FOOD & DRINK

//

The world celebrates international beer day each year on August 2. But in South Africa, and around the southern hemisphere, August is not the best month for enjoying a cold beer outside with friends. So, in 2017, a group of beer enthusiasts started South African National Beer Day – a collection of small-scale events, promotions, pairings, specials and mini-festivals held across the country on the first Saturday in February. The idea is to celebrate beer and bring beer lovers together so that all can share in enjoyment of this much-loved beverage. In its first year, Beer Day saw some 50 events run successfully and 2018 followed with more than 80 events showcasing various beers around the country.

Beer is big business in South Africa.

A successful mix of major international producers, local craft players, various small-scale production companies, and a large number of home brewers make for the perfect recipe (just like water, hops, barley and yeast). In fact, figures from Stats SA from 2017 found that 2.1% of total household spending in South Africa goes on beer – that’s more than tobacco, veggies and sweets.

Beer heritage in the country is mixed and goes back a long way.

European settlers brought brewing knowledge to South Africa in the 1600s and early 19th century and this combined with local indigenous methods which included the creation of sorghum beers and Umqombothi – made with maize, maize malt, sorghum malt, yeast and water.

Today, the market is dominated by a handful of key international brands

one of which is Heineken. Previously imported as a premium European lager, Heineken is now brewed in a state-ofthe-art facility in Sedibeng, south of Johannesburg’s centre. Using the same recipe as its Dutch creators have used for more than a century, South African’s now enjoy Heineken the same way that their peers do in 192 other countries across the globe.

Heineken’s roots go back to 1873 in Amsterdam where a budding young brewer built a brewery and crafted a beer that was centred around outstanding flavour delivered by concentrating on perfect-quality ingredients.

In 2016, Heineken South Africa was born, bringing the popular brand into the country as an independent entity.

No longer a delicious import, Heineken began to grow its South African market share and add brands to its portfolio,

Simplicity works.

The story goes: In 1995, after Maurice and Charles Saatchi left the first ad agency they founded, due to a difference of opinion between them and a group of investors, they opened M&C Saatchi. Within a matter of days.

A year later, they had offices in London, Singapore, Hong Kong, Sydney, New York and Auckland.

Their overriding philosophy for the new venture was Brutal Simplicity of Thought – a spirit of entrepreneurship that was entrenched from the start. Today, M&C Saatchi has 23 offices globally, making it the largest independent agency network in the world.

When M&C Saatchi Abel opened its doors in Cape Town in 2010 with just 13 people and no clients, it was this philosophy that guided the founding of the agency.

Five years later, the agency had grown to become one of the largest in South Africa, with offices in Cape Town and Johannesburg, as well as presence throughout sub-Saharan Africa.

With numerous prestigious accolades already in the bag, today the Group consists of M&C Saatchi Abel, Connect & Africa, Creative Spark, Dalmatian & Avatar. And from its humble staff of 13, the Group employees over 190 people, servicing some of the bluest blue-chip clients locally and internationally.

So what is it about Brutal Simplicity of Thought that’s made it so attractive to the agency and its partners? The answer is brutally simple: efficiency. In the world of clutter, where people are bombarded with messages every single day, Brutal Simplicity offers an antidote to all the chaos. It is a proven philosophy that echoes in the words of Leornado da Vinci when he said: “Simplicity is the ultimate sophistication.”

Brutal Simplicity has proved itself to be an everlasting truism about life as well as business. So next time you need a solution to your complex business problem, approach M&C Saatchi Abel for their Brutal Simplicity of Thought. It works.

56 / www.enterprise-africa.net

M&CSAATCHI ABEL/24677/E

Delivering on our promise. Again.

Six years ago, one of the world’s most iconic brands put their trust in one of South Africa’s youngest agencies, and we made them a promise: to deliver both in the short term and the long. A promise of partnership and dedication, to ensure their trust will never be taken for granted. Six years on, Heineken® has earned the top spot in Sunday Times Top Brands for two consecutive years. We’re proud to say we’ve kept our promise and will continue to do so.

M&CSAATCHI ABeL mcsaatchiabel.co.za

INDUSTRY FOCUS: FOOD & DRINK

becoming a standalone beer and cider business in partnership with Namibia Breweries Ltd. Among the Heineken South Africa brands are other world-renowned products including Sol, Miller Genuine Draft, Amstel, Windhoek and local lager Tafel. The company’s newest offerings include Strongbow cider and Soweto Gold lager.

In South Africa, Heineken owes much of its success to Ruud van den Eijnden who played an instrumental role in starting up the local business after coming out of Europe to take the role of Managing Director. After three successful years, van den Eijnden has returned to the Netherlands to remain with the Heineken group. In July 2018 he looked back at his successes with Leadership magazine, saying: “For the Heineken beer brand, South Africa is now the fifth

biggest country in the world.”

In October 2018 it was announced that Gerrit van Loo, a Heineken veteran most recently of Heineken Ethiopia, would replace van den Eijnden and focus on taking the business to the next level.

BREWING BEST BRANDS In September 2017, Heineken moved to strengthen its hand in local markets by purchasing Soweto Brewing Company, owners of the popular Soweto Gold brand. The business was founded in Soweto by Ndumiso Madlala and Josef Schmid with the goal of going global.

Globally, Heineken has been on a ‘craft drive’ in recent years, purchasing a number of smaller brewers with a strong group of followers to build its brand and become more connected with drinkers across its geographies. In the UK, Heineken purchased a stake in London’s

Beavertown Brewery and the company said it would use the £40 million from the sale to finance construction of a large new brewery which could create 150 new jobs and upscale production in a big way. Also in 2018, Heineken bought a stake in Spanish craft brewer La Cibeles and pledged to increase its production facilities. In Italy, Heineken announced an agreement with Hibu Azienda Agricola (Birrificio Hibu), a craft brewery and brew pub in Burago di Molgora (MB) in the north of the country. Back in 2015, American brewer, Lagunitas, sold a stake to Heineken on the agreement that the business would be allowed to continue as normal – this has been the theme of Heineken’s craft strategy.

In Soweto, Gold was launched with a party that saw football icon Doctor Khumalo and champion boxer Dingaan Thobela turn out to support.

// I BELIEVE HEINEKEN SOUTH AFRICA’S MANAGEMENT TEAM REPRESENTS THE PERFECT MIX OF LOCAL AND INTERNATIONAL KNOWLEDGE AND EXPERIENCE WORKING IN AFRICA //

58 / www.enterprise-africa.net

HEINEKEN SOUTH AFRICA

Local tavern owners, consumers and various company bosses revelled in the smooth tasting lager with the founders unveiling the new tag line - Born in Soweto, brewed for all.

The Soweto project came just a year after Heineken brought Strongbow apple cider to the South African market.

Regular flavour was complemented by the introduction of Gold Apple and Red Berries and was aimed at urban South African’s who live life at high-speed but need to enjoy relaxation.

BUBBLING LEADERSHIP In Q4 2018, leadership changes were announced at Heineken South Africa. after welcoming Gerrit van Loo, the company was pleased to announce that Millicent Maroga was appointed as the company’s new Corporate Affairs Director, tasked with driving Heineken South Africa’s sustainability programme, ‘Brewing A Better World’.

“We are incredibly pleased to welcome Millicent to the Heineken family. She has a wealth of experience in strategic communications and

corporate affairs management, having previously been head of the Old Mutual Foundation, and worked for SAB as a Public Policy Manager and Corporate Affairs Manager,” says van Loo. He said that the team is now well set to drive forwards, aiming to become the number one brand in the country.

“I believe Heineken South Africa’s Management Team represents the perfect mix of local and international knowledge and experience working in Africa,” he says.

And it’s not just at the top of the pyramid where investment is happening. Heineken South Africa recently announced that it has welcomed 28 learners who will take part in the company’s Packaging Learnership programme. The 12-month programme will see the learners attain a NQF level 3 packaging qualification. The hope is that the programme will drive sustainability and transformation within the business, building a talent pool for the future and bring more female workers into a maledominated industry.

“Exposing the learners to both

theoretical and practical on-the-job training early on, translates to agile future employees who are skilled, and prepared for most challenges in their chosen career paths,” says Supply Chain Academy Manager, Thandie Letshabo.

“It important that the programme reflects women’s potential capabilities and contribution in the industry,” she adds.

It is this type of investment that has seen Heineken named among the country’s Top 500 – a publication that recognises the best managed organisations in South Africa.

On South Africa National Beer Day (Feb 2nd), perhaps Heineken should be your choice. Part of a global company that is proud to be in South Africa, Heineken SA is a business that is without doubt moving the brewing industry in the region forward. Pick up next month for more from Gerrit van Loo.

WWW.HEINEKEN.COM/ZA

www.enterprise-africa.net / 59

AFRICAN FINANCIAL GROUP

Successfully Delivering Quality Healthcare

for ‘Missing Middle’ PRODUCTION: Manelesi Dumasi

Now is a very exciting and important time for diversified financial services and healthcare business, African Financial Group. Growing on the continent and in the Middle East, listing on the ZAR X, and expanding into new service areas with local partners, Dr Gil Mahlati is a busy man. www.enterprise-africa.net / 61

INDUSTRY FOCUS: FINANCE

//

12 months since Dr Gil Mahlati told Enterprise Africa of his ambition to help transform the South African economy by ‘using money generated by black people instead of established money’ to drive an investment strategy focussed around healthcare, he is now happy to share that the plan is reaching fruition. His company, African Financial Group - a pioneering transformational investment and financial services company – is helping to build hospitals and healthcare facilities around the continent and helping to deliver quality, affordable healthcare where it is needed.

Dr Mahlati, a Fellow of College of Surgeons of SA from the University

// WE ARE NOW GETTING CONTRACTS IN THE UNITED ARAB EMIRATES AND WE ARE DISCUSSING BUILDING HOSPITALS IN DUBAI //

Dr. Gil Mahlati

62 / www.enterprise-africa.net

of Cape Town (1994) and a Clinical Fellow in liver surgery from King’s College Hospital in London, is one of the country’s most trusted figures in the healthcare industry.

He has a long history in finance and economic empowerment, and is now partnering with other local investment organisations to advance plans for delivery of healthcare to the so-called ‘missing middle’.

“There’s a whole section of our economy, known as the ‘missing middle’, including police, teachers and others in the lower-middle class, that don’t have access to proper private healthcare and proper private housing funding so we are concentrating on that area in South Africa which is around 15 million people,” he told Enterprise Africa in 2017.

Asked about progress in this area, Mahlati reports positively.

“It’s going very well,” he says. “We have the support of a local private equity fund called Razorite Healthcare Fund (RH Managers) and we are getting pan-African support from Oppenheimer Partners.

“We are part of a joint venture with Austrian healthcare company, VAMED, and they have established an

office in Johannesburg which helps to globalise our healthcare offering. We are now getting contracts in the United Arab Emirates and we are discussing building hospitals in Dubai. We are the financial partner to Sakhiwo – the healthcare infrastructure solutions company. We arrange the capital for Sakhiwo not only on the continent but also in Dubai and elsewhere.”

ZAR X LISTING Global exposure has helped spur AFG towards a local listing and, in the near future, the company will be traded on the new bourse, ZAR X. Established in 2016 by CEO Etienne Nel, the ZAR X is a licensed stock exchange that uses disruptive fintech to create a more efficient market for all.

“The ZAR X will list all black empowerment shares that are derived from listed companies on the JSE. We have created securitisation structures to list on the ZAR X and that will happen at the end of Q1. It will help to bring more capital into transformational investments which are trying to help rebalance the ownership of the economy. We are working closely with ZAR X, and we have been for the past few years, to make it possible for us to list. It has taken a lot of intellectual capital – legal, tax, financial – to do what we are doing,” states Mahlati.

The last year has seen African Financial Group grow revenue significantly and expand its geographic reach to bring innovative financing and healthcare solutions to more African nations. Previously, Mahlati stated he wanted to reach $1 billion turnover. “We are almost there,” he says.

“At Sakhiwo, in South Africa alone, we have new hospitals that we are building that amount to around R7 billion in turnover. If we look at the size of the projects in Dubai, which we have not concluded yet, they are around $200 million per hospital and we are looking at four hospitals. We have also just started discussions with the government of South Sudan on

AFRICAN FINANCIAL GROUP

// IT WILL HELP TO BRING MORE CAPITAL INTO TRANSFORMATIONAL INVESTMENTS WHICH ARE TRYING TO HELP REBALANCE THE OWNERSHIP OF THE ECONOMY // the $500 million roll out of healthcare infrastructure. So, we are on target to deliver $1 billion turnover on the healthcare infrastructure side. On the financial services side, with the listings, in terms of assets under management, our target is R10 billion in two years.

What is helping us is that some of the policy positions of our government, which encourage the redistribution of wealth and getting emerging companies to participate in South Africa. In the rest of Africa, there is a lot of interest in the continent as a source of growth from both East and West.”

He highlights private hospital projects across various African countries as brilliant examples of how the healthcare industry is modernising and expanding to come up with solutions to new challenges.

“We have a project in Zambia, with the local pension fund, to build a university hospital and we are also looking at other financial service opportunities. We have another project in Ghana to build a private university hospital. We also have a project in Cameroon to build a

private hospital and a pharmaceutical distribution centre.”

Faced with political and economic challenges, Africa – like any world geography – must jump hurdles to develop sound investment strategies.

But the nature of the healthcare industry makes it somewhat insulated from economic and political turmoil and Mahlati is happy to see private and public organisations coming together around Africa to achieve success.

“Healthcare is resilient when it comes to downturns - you can’t postpone your pain. The policy shift across the continent towards universal coverage in most countries - including Kenya, Zambia, South Africa – and the policy shift towards welcoming private sector involvement have combined to help with what we want to achieve,” he says.

LE T’S BUIL D HE ALTH w w w. s a k h i w o . c o m mail@sakhiwo.com

WE BELIEVE IN THE POWERFUL IMPACT OF WORLD-CLASS HEALTHCARE.

WE SPECIALISE in strategic health planning, health briefs, facility planning, architectural design, project and construction management, health technology, consultancy and advisory services related to hospital infrastructure development, commissioning and health facility maintenance management.

Current projects SOUTH AFRICA • Cecilia Makiwane Hospital • Lilitha College of Nursing • Frere Hospital (Oncology, ICU) • Sipetu District Hospital • Thabazimbi District Hospital • Letaba Regional Hospital • Limpopo Academic Hospital • Siloam Hospital • Eastern Cape Health Facilities Maintenance ZIMBABWE • The Avenues Woman and Child Hospital

MOZAMBIQUE • Nampula General Hospital GAMBIA • Horizons Private Clinic (TA for AfDB) NAMIBIA • Otjiwarongo Referral Hospital • Ondangwa District Hospital • Khomas District Hospital • Katutura Hospital • Windhoek Central Hospital BOTSWANA • Health Facilities Maintenance

SAKHIWO – Leaders in Health Infrastructure Development.

SAKHIWO acts as an implementing and multidisciplinary development agency for hospitals and health facilities and operates both in Southern Africa as well as the rest of the African continent.

www.enterprise-africa.net / 63

INDUSTRY FOCUS: FINANCE

NHI South Africa’s long-awaited National Health Insurance bill is set to be finalised in the coming weeks and months and the premise – to give all South Africans access to quality healthcare regardless of their socioeconomic status or ability to pay – is one which Dr Mahlati supports.

But in December, the bill was rejected by parliament and the Department of Health has had to rework the idea which has given African Financial Group time to prepare and plan for what this new system might look like.

“We are happy as we are honing our skills in terms of how we deliver this cost-effective healthcare, and it is giving us time to continue with our pilots in terms of reinvestment methodologies and contractual arrangements. We are now getting more partners and we are working with the government medical aid scheme in order to deliver this cost-effective healthcare,” says Mahlati.

64 / www.enterprise-africa.net

“We are expecting the announcement as part of the SONA and it will be pushed through – it’s only technicalities that are holding it up, surrounding how the Department of Health will work with the Treasury – it’s all inter-governmental issues.

Treasury gets a lot of tax from medical aid and people who fund their own healthcare and there are technicalities in terms of how that will be treated. Treasury doesn’t want that inflow to diminish but at the same time the Department of Health wants to have control of that type of cash for NHI. There’s also a constitutional technicality. Constitutionally, healthcare is delivered by government at provincial level and not at national level so NHI would require constitutional changes to be implemented.”

While addressing ANC supporters at the party’s election manifesto launch in Durban last month, President Ramaphosa said that the government remains committed to the implementation of NHI.

// HEALTHCARE IS RESILIENT WHEN IT COMES TO DOWNTURNS - YOU CAN’T POSTPONE YOUR PAIN // “The NHI is a chance for South Africans to contribute to the collective health and well-being of one another and extend access to quality healthcare to everyone.

“We are fully aware that the journey to universal health care has to start with deliberate efforts to address the immediate crisis in the public health system to tackle such issues as corruption, poor management of financial resources, human resource planning, training, budgeting, maintenance and upgrading of equipment and infrastructure,” he said.

AFRICAN FINANCIAL GROUP

FAMILY BUSINESS Dr Gil Mahlati started AFG alongside his wife – Dr Vuyo Mahlati, a financial services expert who has been a driving force behind South Africa’s NDP. Now, almost two decades into business, African Financial Group has welcomed the next generation of Mahlati’s to the company. Lilitha Mahlati - who holds a Master of International Business from Hult International Business School in Shanghai and a Business Science Finance Honours degree from University of Cape Town - is now the company’s Investments Director and Gil Mahlati is enjoying working with his daughter.

“It has been very helpful” he says, “especially when working with Sakhiwo as she is an infrastructure finance person and her skills are required for exactly what we are doing together. There is also an issue in South Africa with female empowerment – it’s very topical. Even if you are a black-owned company, you

tend to score higher if you have female Directors. One of our global partners, Castle Pines, has decided to invest in her and her team so that she can complete new deals and transactions. Right now, they are discussing relationships so that investments can move forward.”

Looking at other opportunities, away from its health and financial services offerings, AFG has been utilising presence at popular exhibitions to get involved in exciting new projects that can be scaled around the continent.

“There have been two investment conferences recently, one organised by SA and one focussed on the continent, and this has given us a lot of firepower and a lot of pan-African projects to work on. For example, we are now looking at the development of smart cities with a company based in Cape Town. They are looking at the development of a new city on the northern side of Cape Town over the next 20 years, which will absorb most

of the informal settlements from the Cape Town area. We plan to export this idea around Africa and we have interest from Mauritius, Zambia and Nigeria, and the project has the support of Castle Pines so we are in discussions about how we can fund it. There will be more to come on that in 2020 as the idea remains in development.”

Times are certainly thrilling for AFG, and with all that remains to be done on both the healthcare side of the business and the financial services side, this is a company which remains committed to its vision and is realising significant opportunities for Africa.

WWW.AFRICANFINANCIALGROUP.COM

www.enterprise-africa.net / 65

SAOTA

Constructing

A Fearsome Global Reputation PRODUCTION: Timothy Reeder

One of South Africa’s leading architectural firms, SAOTA’s innovative and dedicated approach to the design, documentation and execution of projects globally has seen it become an internationally sought-after brand. The company enjoyed a decorated 2018, with its global reach continuing to expand and allowing SAOTA to take on more complex and highly celebrated work.

66 / www.enterprise-africa.net

Yalikavak - Bodrum, Turkey

INDUSTRY FOCUS: PROPERTY

//

“We strive to promote a service marked by excellence both in our buildings and in addressing the needs of our clients, with the focus on high standards and elegance.” This is SAOTA’s mission statement right from the outset, and, driven by the dynamic combination of Stefan Antoni, Philip Olmesdahl, Greg Truen, Phillippe Fouché and Mark Bullivant, a shared vision has been developed which is instantly recognisable around the world in their designs.

SAOTA is positioned to offer expert services to the full set of key marketplaces: corporate, institutional, commercial and residential.

The company began life specialising in villa-style single residence buildings, and even the creative minds at its heart would have had difficulty picturing the business as it stands today. Over the past more than 30 years SAOTA has grown both in scope and reputation, and is now able to take on notable projects numbering hotels, multi-residence apartment buildings, government buildings and more.

Yalikavak - Bodrum, Turkey

68 / www.enterprise-africa.net

GLOBAL FOCUS As SAOTA’s expertise has grown, so too has its reach. Having grown from its strong roots in South Africa, 85% of SAOTA’s clientele is now international.

This has seen the firm compete projects in some 86 countries. Its footprint now covers five continents and includes highly technical work which spans some of the world’s most exclusive locations.

Philip Olmesdahl, who has notched up over 20 years at SAOTA, describes the scale of the shift in focus since his early days with the company. “We have a good spread around the world,” he outlines, “and we are localising in particular areas. Excluding Greece, we have seen nice growth in all of our targeted regions worldwide, and we have a good spread of both residential and commercial property; among these are much larger scale master planningtype jobs in Turkey and Spain.”

Its international capabilities have been instrumental in shielding the company from the pressures felt by others caused by volatile African markets, and SAOTA’s leaders want to achieve a balance between domestic and global

Clifton Terraces

// WE ARE PROUD TO SERVICE THE AFRICAN REGION AND ARE WORKING TO REGROW MARKETS THAT HAVE SLOWED // prosperity moving forward. “When we first moved out of South Africa, a lot of our work was still on the continent,” says Olmesdahl of SAOTA’s gradual move to today’s worldwide coverage.

“Up until a few years Africa remained a substantial part of our business, but that has changed substantially since our moves into the USA, Europe, the Middle and the Far East.

“Africa is not as prosperous any more due to a number of different reasons but Nigeria, Kenya and South Africa remain busy, and Senegal, Congo and Ivory Coast still have projects. We are proud to service the African region and as a result we are putting a lot of effort into re-growing markets that have slowed.”

SAOTA

Trust is being placed in the quality of SAOTA’s work from an ever-expanding proportion of the globe. This is largely down to a design philosophy that connects function and form, and the pursuit of true architectural design to create appropriate solutions wherever they may be required.

It is also the SAOTA focus on achieving maximum value which has led to these global invitations to design, build and create some of the most highly prestigious projects in recent years. In turn, increased exposure to the global marketplace has seen SAOTA flourish, lending it blank canvases in the form of cities and contexts to allow inspiration to radiate from its unique approach to design.

GLOBAL RECOGNITION Success in SAOTA’s industry can be measured in two ways. Contract awards for prestigious projects in far-off lands is an obvious indicator that a job is being well done, but the physical awards provide tangible proof of the progress being made.

New Engineering Building - UCT

Yalikavak - Bodrum, Turkey

www.enterprise-africa.net / 69

INDUSTRY FOCUS: PROPERTY

SAOTA is no stranger to either form, but 2018 was a remarkable year for prizes, even by its own lofty standards.

Characteristically, SAOTA was celebrated both at home and abroad.

The inaugural edition of Spice Lifestyle Honors took place in December, organised by lifestyle channel Spice TV to acknowledge excellence in the African fashion and style industry and recognise outstanding work by brands, individuals and lifestyle curators. SAOTA was delighted to be crowned Design Company of the Year, amid an extraordinarily strong field, boding very well for its big to bolster its African presence in the short-term.

At the completion of the Clifton Terraces development, a luxury suite of apartments in Cape Town’s famously affluent Clifton suburb, Director Greg Truen spoke of the commercial success that had followed a pleasurable design experience for the company. “It’s largely complete at

Yalikavak - Bodrum, Turkey

70 / www.enterprise-africa.net

this point, and it’s largely been sold,” he said. “It’s looking amazing and we are very happy with the way the whole thing has turned out. It’s a fantastic building from an architectural point of view and it’s been pretty successful commercially as well.”

His high praise was mirrored as Clifton Terraces was recognised for innovative excellence at the SAPOA Property Development Awards 2018, in the Residential Developments category. It is the most prestigious programme of its kind within the South African commercial real estate sector, and a primary objective is to define excellence in the property industry.

Clifton Terraces is located in one of the most sought-after locations in Africa, surrounded by the worldrenowned Clifton Beaches and nestled between Lion’s Head and Table Mountain. “A key consideration of the design was blending the building into the natural surroundings using its

// WE STRIVE TO PROMOTE A SERVICE MARKED BY EXCELLENCE, WITH THE FOCUS ON HIGH STANDARDS AND ELEGANCE // overall form, its deep overhangs and a restrained natural palette of materials,” said SAOTA Director Mark Bullivant of the thought process that paved the way for the award-winning design.

DOUBLE GONGS FOR DOUBLE BAY In Australia, meanwhile, overlooking a sheltered bay within Sydney’s world-famous harbour, you will now find SAOTA’s Double Bay, billed as a “youthful yet sophisticated contemporary family dwelling.” Set

SAOTA

If it is for your primary residence, holiday villa, development or office, ensure your next technology choice is the SMART one.

With over 20 years of project experience in Africa, trust 4ward-design with your integration, audio visual and control system requirements We offer a complete turnkey solution including: - Consultation and Design - Supply & Installation - Project Management - Programming and Commissioning - Technical support and Service Level Agreements

www.4ward-design.com info@4ward-design.com +27 21 510 1393

in a north-facing cove in Sydney’s vast natural harbour, the site borders a recreational park and a public pier which juts out into the bay and efficiently creates private, sheltered spaces for family living, whilst maximising wide outlooks towards the water and beyond.

SAOTA, together with Architects in Association Tanner Kibble Denton (TKD), gathered an award at the Trends International Design Awards 2018 (TIDA), in the category Australia Architect New Home 2018. Now in its fourth year, TIDA recognises outstanding homes by architects and designers across a range of countries.

A shining example of SAOTA’s strength in collaborative working, TKD worked closely with the client to ensure that SAOTA’s detailed design was delivered and a dream home

subsequently realised. Following this award, Double Bay has also been put forward for the TIDA International Category, but while we await news of this probable triumph, Double Bay has also been feted at the most high-profile event in the building industry calendar, The Master Builders Association of NSW (New South Wales, Australia) Excellence in Housing Awards.

Standing out from over 400 entries across the state, Double Bay was awarded the top prize in the Contract Houses (new builds) category.

“When visiting our clients in the newly completed Double Bay home, we were struck by the extremely high level of finish, accuracy and craftsmanship that had been achieved in the final product,” Philip Olmesdahl commented upon receipt

of the prize. “Horizon has achieved something special in the construction of this home that does full justice to our design, and this one-of-a-kind harbourside site.”

There was not a single visible defect that we could identify,” he continued. “Our experience of the build process with Horizon was a productive collaboration between all parties, and we look forward to working with them again in bringing another project to life.”

WWW.SAOTA.COM

www.enterprise-africa.net / 71

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.

MEETINGS AFRICA FEB 25 - 27 | SANDTON Meetings Africa is a Pan-African Business Events Trade Show that has been in existence for 13 years. The trade show was born in response to the global meetings industry’s growing recognition of Africa as a soughtafter premier business events destination.

Part of Meetings Africa’s role is to showcase the best of the best in our capabilities not only as a country, but as a continent. Meetings Africa serves as a primary platform for Africa’s business events professionals to showcase their diverse services and products to global buyers and create partnership opportunities with African associations to help transform and contribute towards the continent’s economic growth.

This year’s Meetings Africa promises to be the biggest yet, with exhibitors from numerous African countries who are participating for the first time. Namibia, Zambia, Tanzania and Mauritius will be the new additions to the 70 exhibitors from outside Africa. Around 230 South African exhibitors make up the rest of the numbers.

Approximately 400 highly qualified buyers from 36 countries around the world expected to attend in 2019, more than a hundred more than last year.

INVESTING IN AFRICAN MINING INDABA FEB 04 – 08 | CAPE TOWN The 25th Anniversary Mining Indaba will be big, bold and better than ever. The highly anticipated event will see the largest number of investors, mining executives and junior miners from across the globe come together

72 / www.enterprise-africa.net

for this leading deal making forum.

The unrivalled networking is matched by an agenda that features His Excellency President Cyril Ramaphosa, Republic of South Africa joined by His Excellency Nana Akufo-Addo, President of Ghana, 35 Mining Ministers and the most influential people in African mining. No other mining event provides this level of expertise and access to the entire value chain.

Celebrate how far the industry has come and discover what the future holds for you in the African mining market.

KZN CONSTRUCTION TRADE EXPO FEB 20 - 21 | DURBAN With more than R200 billion government expenditure earmarked for infrastructure development in KwaZulu-Natal over the next seven years and R35 billion set aside for the Port Waterfront development over the next 15 years, now is the time to capitalise on the growth opportunities for construction companies.

Being the only dedicated expo for KZN’s built environment, focusing on buyer and seller engagements through free-toattend practical training, CPD accredited workshops, live product demonstrations and face-to-face interactions, this is an event not to miss.

Over 2750 attendees are expected, ranging from small contractors to architects, quantity surveyors, property developers, government and industry associations.

This platform not only facilitates new investment into infrastructure but also builds capacity for local construction professionals through free education and technical skills development during training

MEETINGS AFRICA SANDTON CONVENTION CENTRE FEB 25 - 27 UGANDA TRADE EXPO UMA EXHIBITION CENTRE LUGOGO FEB 19 - 20 ISF NORTH AFRICA INTERNATIONAL SPORTS & FITNESS EXPO OLYMPIC CENTRE FOR TRAINING TEAMS, CAIRO FEB 06 - 08 EGYPT PETROLEUM SHOW CAIRO INTERNATIONAL CONVENTION AND EXHIBITION CENTRE FEB 11 -13 MY BUSINESS EXPO GALLAGHER CONVENTION CENTRE FEB 20 -21 CIFAC SOFITEL CASABLANCA FEB 13 INVESTING IN AFRICAN MINING INDABA CAPE TOWN ICC FEB 04 – 07 WOOD CONFERENCE CAPE TOWN ICC FEB 26 KZN CONSTRUCTION TRADE EXPO DURBAN ICC FEB 20 - 21

workshops over the two days. Sponsored

by Spider Mini-Cranes and supported by over 60 association and media partners, the KZN Construction Expo provides access to KZN’s entire building and construction value chain.

MAKE EVERY WORK ZONE A SAFETY ZONE. At Dromex we believe that all employees are entitled to maximum protection and that employers should never have to compromise on the quality of the protective products they supply. We believe that it is our responsibility to supply products that will deliver on this promise and its not something we take lightly.

Know safety. No injury. Know Dromex.

HEAD OFFICE Unit 1, 1 Blase Road, New Germany, 3610 T. +27 (0)31 713 1960 F. +27 (0)31 705 6508 E-Fax. 0866 844 595 Email. sales@dromex.co.za Web. www.dromex.net