Enterprise Africa - November 2019

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

November 2019

www.enterprise-africa.net

Prommac Positions Itself at

Forefront of Innovation Exclusive interview with CG Holdings CEO Jason English ALSO IN THIS ISSUE:

Logicalis South Africa / Momsen Bikes / Brights Hardware / Singita

SMART INSPECTION SOLUTIONS – WITH EXPERTISE AND KNOW-HOW. Reliable quality control in pharmaceutical packaging.

Seidenader supplies inspection solutions for ampules, vials, syringes and cartridges: from table-top units to high-performance inspection machines with state-of-the-art image processing systems and complementary leak testing technologies for liquid and freeze-dried products.

More than 120 years of experience and comprehensive knowledge of the high safety and quality requirements of the pharmaceutical industry make Seidenader one of the world’s leading suppliers of inspection solutions today. A Seidenader syringe inspection machine has also been installed in Cape Town, South Africa.

www.seidenader.com

EDITOR’S LETTER

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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 SENIOR PROJECT MANAGER Lewis Hammond  lewis@enterprise-africa.co.za PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za PROJECT MANAGER Daniel Roper  daniel@enterprise-africa.co.za PROJECT MANAGER Tom Gibbons  Thomas@enterprise-africa.co.za FINANCE MANAGER Chloe Manning  Chloe@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 +44 (0) 1603 855 161 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. © CMB Media Group Ltd 2019

Technology is changing the way business is conducted. While this may be the most obvious statement of the past decade, it’s amazing how many still fail to adapt. Businesses must be flexible and nimble, making changes where necessary, in order to survive. In South Africa, the advent of new technologies on businesses, large and small, is amazing to witness.

Take Secunda-based multi-disciplinary engineering firm, Prommac, for example. In 2016, training employees and bringing them up to speed with everything needed to manage sites was taking around four years. Today, following significant investments into modern technology, that timing is down to just two years. By using training videos, gamified testing, virtually reality and a host of other innovative methods, this business has made major efficiency improvements while other in the industry have remained stagnant. Chief Ecosystem Officer Jason English tells us more.

In Port Elizabeth, South African born and bred bike brand Momsen Bikes is looking at digital strategies and modern communication strategies to grow. By learning the very best manufacturing methods from industry leading businesses in Taiwan, CEO Victor Momsen has learnt how to design and create the best possible bikes for the SA off-road trails. The result – the brand has become very popular and is gaining traction in new market segments.

Western Cape hardware specialist, Brights Hardware, is currently bringing its entire catalogue online, and investing in digital technology so that customers can order and have products delivered effortlessly. While many are happy to sit and watch as foot traffic falls in stores, Brights is investing in its future by utilising technology.

These are just a few examples of fantastic businesses doing all the right things and November’s Enterprise Africa is packed full of inspiration.

Tell us how your company is, or is not, making the best use of technology. We’re online @EnterpriseAfri1 and on LinkedIn.

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 1603 855 161  joe@enterprise-africa.co.za www.enterprise-africa.net

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

134/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/ PROMMAC (PTY) LTD Prommac Positions Itself at Forefront of Innovation Prommac is investing heavily in technology that can help to upskill people quicker than ever, improving the company’s efficiency and building a business that is integral when delivering value for clients. CG Holdings CEO Jason English talks to Enterprise Africa about how Prommac is at the cutting edge of innovation and is continuing to grow while others falter.

8/ 4 / www.enterprise-africa.net

CONTENTS

INDUSTRY FOCUS:ENGINEERING

INDUSTRY FOCUS:TECHNOLOGY

8/PROMMAC (PTY) LTD Prommac Positions Itself at Forefront of Innovation

77/LOGICALIS SOUTH AFRICA Not Just IT Solutions but Global IT Know-how

INDUSTRY FOCUS:CONSTRUCTION

83/SKA PROJECT SKA Precursor Continues to Display Value

17/WBHO CONSTRUCTION WBHO Surviving and Thriving in Torrid Times 22/HAW & INGLIS Construction Revival Suits H&I Down to the Ground 29/BRIGHTS HARDWARE Doing More Than Ever For Local Building Trade 34/LHWP Water, Water, Everywhere…

40/DORNING GROUP Strong, Sustained Growth Sees Dorning Group Cement Position as Regional Leader 46/LEGARO PROPERTY DEVELOPMENT Johannesburg’s New Shining Light in Property INDUSTRY FOCUS:SPORTS & LEISURE 55/MOMSEN BIKES The Epic Mountaineer INDUSTRY FOCUS:HOSPITALITY 62/BARNYARD THEATRE From Footlights in a Farm to Bright Lights Across SA 66/SINGITA ‘Place of Miracles’ Holds A Vision for Conservation Expansion

91/PFK ELECTRONICS Leading the Golden Age of Automotive Innovation 96/CSI THABILE Strong Growth & Investment Spells IT Success INDUSTRY FOCUS:MANUFACTURING 100/NATIONAL PACKAGING SYSTEMS 36 Years of Automating Africa’s Food Packing 106/WIRQUIN SA Ever-Growing Wirquin Continues on Expansion Journey INDUSTRY FOCUS:INFRASTRUCTURE 113/DUBE TRADEPORT Everyone Agrees: Dube TradePort Is the King of SEZs INDUSTRY FOCUS:FINANCE 118/EXPERIAN SA Acquisition to Improve Financial Inclusion Across sub-Saharan Africa INDUSTRY FOCUS:RETAIL 129/TAKEALOT Customer Care Is Key to Takealot e-Dominance

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MINISTERS TO PAY THEIR WAY Finance Minister Tito Mboweni says there is a need to trim civil servant perks and stop wastages as the debt to GDP ratio is expected to rise to 71.3% in 2023.

This will include relooking at how much the public service spends on Ministerial cars, cellphone benefits and ensuring that everyone — including Ministers, the provincial executive and Mayors — travel economy class for all domestic flights.

“There are a number of risks to the fiscal framework, which this government has to confront head-on. The debt to GDP ratio is beginning to reach unsustainable levels. Once the debt to GDP reaches 60%, we should be concerned. Ideally, it should be 30% or lower.

“So the debt to GDP ratio is a very serious matter we need to attend to,” Mboweni said.

In the past, Ministers used to travel first class with their assistants. This was changed and currently, Ministers are eligible to travel business class.

Mboweni said government will stop buying cellphones for public representatives and senior managers in the public service. This area of expenditure will be looked at with a view of forcing public servants to buy their own phones and claim for official calls.

He said an audit of how much government spends on cellphones currently stood at R5 billion “on a 12-month basis”.

6 / www.enterprise-africa.net

MARA PHONE FACTORY BOOSTS LOCAL ECONOMY

Efforts to revive the country’s sluggish economy and create much-needed employment received a major shot in the arm with the launch of Mara Phone’s first cellphone manufacturing plant in South Africa.

During South Africa’s inaugural Africa Investment Forum in November last year, Mara Group founder and Chief Executive Officer, Ashish Thakkar, 38, announced that his company would invest R1.5 billion in a South African business venture over the next five years. Almost 11 months later, the Rwanda-based Mara group has made good on its promise.

The modern state-of-the-art plant, with an annual production capacity of over 1.2 million handsets, is expected of manufacture two models of smartphones – the Mara X and Mara Z. The company plans to launch upgraded versions annually.

The venture will generate hundreds of high-skilled direct jobs and thousands of indirect jobs. It will contribute to the transfer of technology and high-tech knowledge in South Africa. On its Twitter account, Mara Phones said more than 60% of the staff at the plant are women while 90% of the workforce will be youth.

The production is expected to serve the domestic market as well as

the regional market, especially the SADC region, contributing to strategies that position South Africa as the gateway to Africa.

Given the location of the operations, Mara Phones will be designated as a local product once production commences. Promotion will be conducted through a mix of traditional and digital/online media while utilising local platforms to influence local markets.

The phones are expected to be listed on commerce sites such as Jumia, Konga, and Amazon. The company also plans to sell the phones via retail partnerships with telecom operators Vodafone, MTN and Airtel.

“We all know the importance of high quality and affordable smartphones and the impact this can have on the continent. Quality smartphones mean we can truly enable financial inclusion, microlending and micro-insurance. This can translate into better education, digital healthcare and agriculture efficiency and improve commerce.

“If this is all going to be possible… we [need] quality and affordable smartphones. Unfortunately, we have quality smartphones but they are not affordable and if it is affordable, it is not quality,” said Thakkar.

NEWS SNAPSHOT SA’S ECONOMIC GROWTH PROJECTION REVISED DOWN TO 0.5%

South Africa expects the economy to grow at a rate of 0.5% in 2019 – which is a downward revision from the 1.5% that was projected in the February budget.

Finance Minister Tito Mboweni gave details when he tabled the Medium Term Budget Policy Statement (MTBPS), at the end of October.

“It is our job to chart a course that is strategic, sober, careful and inclusive. The economy is now forecast

to grow at 0.5 % in 2019 compared to the 1.5 % expected in February,” he said.

In addition, growth is projected to slowly rise to 1.7 % in 2022, supported by household consumption and private‐sector investment.

Mboweni’s projection comes after the country’s Gross Domestic Product (GDP) contracted by a revised 3.1% on a seasonally adjusted and annualised

basis in the first quarter of the year.

As the energy constraint lifted, growth rebounded to 3.1 % in the second quarter.

“These two quarters cancelled each other out, and this year growth has been flat. There are some signs that investment spending is strengthening. In the second quarter, growth in gross fixed capital formation rebounded to 6.1 %,” he said.

NTSHAVHENI TO UNVEIL FUNDING INSTRUMENTS FOR SMMES Small Business Development Minister Khumbudzo Ntshavheni is expected to unveil funding instruments that will improve the financing of Small, Medium and MicroSized Enterprises (SMME).

“Minister Ntshavheni will on 14 November 2019 announce a package of measures and SMME funding instruments for improved funding of SMMEs,” said the Ministry of Small Business Development.

The announcement comes as Statistics South Africa (Stats SA) on Tuesday announced that South Africa’s unemployment rate rose to 29.1% in the third quarter.

Ntshavheni noted the disheartening unemployment statics.

“She is of the firm view that the tide of unemployment in South Africa can only be turned around by the growth of the SMME sector, which must prioritise women and youth. Key to the growth and sustainability of SMMEs is improved access to funding, which has been a challenge to the majority of businesses,” said the Ministry.

According to Stats SA’s Quarterly Labour Force Survey (QLFS) unemployment rose by 0.1% from the second quarter.

Minister Khumbudzo Ntshavheni - Photo - GCIS

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Jason English - CG Holdings CEO

PROMMAC (PTY) LTD

Prommac Positions Itself at

Forefront of Innovation PRODUCTION: David Napier

Prommac is investing heavily in technology that can help to upskill people quicker than ever, improving the company’s efficiency and building a business that is integral when delivering value for clients. CG Holdings CEO Jason English talks to Enterprise Africa about how Prommac is at the cutting edge of innovation and is continuing to grow while others falter.

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Leading South African multidisciplinary technical services business, Prommac, has been excelling in the petrochemical and heavy industry sector since 2006.

Providing mechanical, maintenance, shutdown, project and drone services, Prommac has become the local player with an international reputation, competing against some of the biggest players in the global market while always delivering value, efficiency and results for clients.

In 2016, CEO Jason English told Enterprise Africa that the company was enjoying a number of contract wins while heavily investing in new technologies that would help drive their vision of building a culture of innovative excellence within the business.

Today, Prommac is continuing to embed industry leading technology into its business and is busy preparing for a

number of exciting projects that will get underway in 2020. Former COO Dany De Barros has taken the reins as CEO and Jason English is now CEO of Prommac’s parent group, CG Holdings which has also made investments in New Age Engineering - a top quality welding engineering and services business led

by CEO Joseph Zinyana.

“We are still very much focused on building a solid culture and it’s been a part of our growth story. There has been significant growth in Prommac over the past three years and that is because of the continued focus on the culture,” highlights English.

Previously, he explained that building a culture where employees feel valued and rewarded, and have all the opportunities for selfdevelopment at their fingertips, was vital for Prommac. Now, the emphasis is on retaining this culture whilst

building innovation into the DNA of the company by using technology to deliver more efficient services.

“We have really stepped up our innovation in training – the type of training material we are producing, the mentorship programs, the roll out of digitised learner platforms and the implementation of numerous virtual reality and mixed reality concepts are just some of the innovations we are driving across the company,” details English.

“We can take data and create models of the environments in which we work so we can onboard our people quicker and develop their experience.

Our learner management platform is constantly being updated with new training materials and improving in usage. Our platform is excellent as it gamifies the whole learning experience and that creates a form of competitiveness inhouse.”

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INDUSTRY FOCUS: ENGINEERING

GLOBAL TECH LEADER The company is not following this approach because it is a global trend, or because it makes Prommac seem different; English is part of Peter Diamandis Abundance 360 Singularity program as well as the Young’ Presidents Organization (YPO) and has had the opportunity to travel to innovation centres around the world in Silicon Valley, Europe, Asia and Russia and witness first-hand the amazing technology being developed. This has offered the company the chance to implement some of the world’s best systems, aimed at ultimately improving efficiencies in Prommac and the other group companies.

“As technology has evolved, we’ve pushed it harder and harder,” he says.

“As certain types of technology have evolved, they’ve become really useful tools for us. We’ve figured out that, because of the global economy and economies in general, there’s price pressure and there is disruption taking

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place. We are looking at what customers will want in the future and it always comes down to one thing – efficient suppliers and service providers. We have looked at how we can become more efficient and the answer is to increase the productivity of our people.

Everything that we try and do now is related to how we can improve the productivity of our people. If we are more efficient, in theory, our clients are more efficient, they can make more money in these depressed markets, and they will want to continue using us.

“A lot of the technology focus has been around the use of drones and connectivity to IoT (Internet of Things).”

The company has officially introduced drone services over the past three years and uses these remotely piloted aircraft to collect data from these plants and then converts that data into meaningful, useful information like Virtual Reality and Augmented Reality maps and visual displays.

IoT is a system where devices are

connected and can share data with limited human instruction. While the concept is no longer new, it is only just starting to find its way into the mainstream, and businesses are only just discerning and understanding the possible benefits. Prommac has been quick to realise the potential of IoT and has already worked on some innovative solutions that are producing results.

“We have signed a collaboration agreement with a leading telco in South Africa and a global IOT company, and we are working together to look at how we use sensors and the IoT to connect different data points on the ground to create meaningful impacts for our clients and ourselves - that’s being able to identify and track equipment, people, processes to improve project performance,” explains English. “We use different sensors to streamline the way in which we execute maintenance so we get different types of real time data from plant and equipment that can help

PROMMAC

// I SPEND A LOT OF TIME FIGURING OUT HOW TO BREAK OUR COMPANIES AND PUT THEM OUT OF BUSINESS // us predict future failures rather than being reactive to breakdowns. We are trying to use acoustic emissions to make predictions about failures, where we use sounds to pick up issues with rotating equipment. We are testing sensors in a non-traditional way to bring live data into a previously human captured environment. There’s a number of things that we are doing in this space and they are all aimed at helping us become a more efficient service provider for our customers.”

Before the introduction of the learning technology, it would take Prommac around four or five years to get a well-trained, systemsknowledgeable, operationallycompliant individual, ready to take on site management duties. Today, that time period is down to two years.

“The real value that we see is that we can onboard people with no experience about our business and rapidly get them to a point where they are effective in the field in the shortest possible time. Where it may have taken us four or five years to get someone up to speed in the field and ready to run operations, we are now finding that we can do it in two years. We are turning people with very little experience into valuable assets in the field, with technical knowledge, by using online training technology and building an innovative culture. To further enhance their value, we are exploring IoT solutions that allow us to gauge the hot spots where things are not going so well so we can respond quickly,” says English.

Prommac is demonstrating its ambitions to be an innovation leader

in South Africa and by bringing in advanced technology across the business, it is differentiating itself from others in the country.

“From what we know, there are others out there applying the same technologies, but in a fundamentally different way. Our uniqueness is that we take our deep knowledge of our industry sectors and use technology to evolve these industries in a way that no one else is really doing. In our space specifically, we are not always using world firsts, but we are certainly up there with some of the world’s leading companies,” admits English. “We are bringing together the right technology to solve client’s challenges on the ground.”

He is keen to position the business as one with a reach into the technology sector, but without losing its reputation for technical excellence in engineering.

“We are sitting in the middle and thinking that the business landscape is going to change significantly over the next five years, and in order to reposition ourselves, we have to think of ourselves as a technology business that brings the right technology to our clients so that we can yield the right efficiencies and improvements in their operations by using our own knowledge of their infrastructure. If we can connect the technology to our knowledge of their facilities, that is where the real value is seen and where everyone wins.”

PROJECT PIPELINE Following on from a number of success stories over the past few years – all over southern Africa – Prommac has secured a number of high-profile, high-value contracts across some of South Africa’s most vital infrastructure facilities.

We have provided solutions and products to a range of clients who have now become loyal customers. This speaks for itself, as Aszorb has certainly become a name that has earned respect in this competitive industry. www.aszorb.co.za / info@aszorb.co.za t: 011 892 8030/1/2 / f: 086 686 3222

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INDUSTRY FOCUS: ENGINEERING

// WE ARE THE ONLY COMPANY, THAT WE ARE AWARE OF, THAT HAS SEEN POSITIVE GROWTH YEAR-ON-YEAR OVER THE PAST FIVE YEARS IN A RELATIVELY LOW CONFIDENCE, DEPRESSED MARKET. // “A big focus going forward is a steam header replacement for a client in Sasolburg - that is a significant job,” says English. This is a project where Prommac has already demonstrated its enviable skillset. “In September 2018, we were given the first phase of a steam header replacement, one of two replica projects, the first in Secunda and the second in Sasolburg.

The one in Secunda was given to a large international company and the one is Sasolburg was given to Prommac. It was executed in conjunction with New Age Engineering and we applied some of our 3D animation technology to try and optimise the execution of the project. It was a 14-day job and we finished four days early. The same job being done in

12 / www.enterprise-africa.net

Secunda by the international business was finished seven days late. Everyone in the petrochemical space knows that the difference in these results in a significant amount of monetary gains for our clients.”

Such an effective delivery of the first phase saw Prommac awarded phase 2, and a subsequent great performance in phase 2, has led to phase 3 where the main steam header will be replaced. “It all stems from a team of people who have been productive and it all comes back to us being efficient. Because of the way we can execute, we have won significantly larger contracts.”

For foreign industrial sector businesses entering South Africa, Prommac has positioned itself as the

obvious partner, brimming with local knowledge and determined to deliver efficiency for clients.

In early 2020, Prommac will begin a fluid catalytic cracking unit (FCCU) replacement project for a French multinational business. The FCCU is extremely important, turning hydrocarbons into gasoline and other useable products.

“This is a follow-on job after our first project with them in 2017 which we completed safely and ahead of schedule. It was a very challenging job where we had to replace the top of a column. We used our animation technology to make that a very successful project. Subsequently, the same company has reappointed us for replacement of a reactor at another refinery in Cape Town in March 2020,” details English.

Prommac’s newer offerings fully complement its traditional service portfolio and drone services in particular are proving to be extremely useful for the company and its clients.

“We are the first fully technically

PROMMAC

// WE CAN TAKE DATA AND CREATE MODELS OF THE ENVIRONMENTS IN WHICH WE WORK SO WE CAN ONBOARD OUR PEOPLE QUICKER AND DEVELOP THEIR EXPERIENCE // accredited drone operator for a major global chemicals client and we have been providing some really intricate, detailed, internal boiler, tank, stack and pipeline inspections. We have been saving significant time in the execution of work. Traditionally, it could take three days to put up a scaffold tower while inspecting. We can do a flight in 40 minutes and pull in all the data to provide a report in three hours, and highlight the damages that we might see.”

Prommac is also using drone services to assist the mining sector with stockpile monitoring and high-profile inspections as well as supporting the agri-tech and security industry.

Again, these efficiency improvements are impactful on the bottom line of a client’s business and, inevitably, this encourages repeat business and an ongoing beneficial relationship.

CG HOLDINGS When looking for new technologies and methodologies to improve, Prommac is able to leverage from its sister companies in the CG Holdings group. Established in 2016, CG Holdings is an owner-managed group with more than 4000 employees at peak across its operating businesses with international exposure.

The group is made up of Prommac, New Age Engineering and EC&I in South Africa, Al Laith in Dubai, Event Centre in Ireland, and CG Labs (formerly Iris

Group) in the UK. CG Labs is the innovation hub of the business and helps to drive the development, acquisition and adoption of new technology across the group.

This problem-solving business helps to set the group apart from others.

“It is focussed on understanding all the technology that is out there and how our individual operating companies, like Prommac, could utilise various technology offerings,” explains English. “Prommac would send a request to CG Labs for a solution and CG Labs would either develop technology or source something from its ecosystem of partners before sending the idea back to Prommac where it would be tested and trialled before becoming a Prommac product and a solution for Prommac’s clients.”

Located in Milton Keynes,

Buckinghamshire CG Labs helps to take the load from other companies in the group, allowing them to focus on their core business and the business of their customers.

“When you innovate inside your company, it can be a distraction,” admits English. “We found that as the group grew bigger and bigger, it became worthwhile for us to establish a completely separate innovation business that would only focus on problems in the group while allowing the core operating businesses to continuously focus on their day to day operations.”

The work of CG Labs will become more and more significant as CG Holdings continues to expand its reach globally. Currently active across three continents, English says the group will expand, and is currently looking at new opportunities in the Middle East and UK.

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INDUSTRY FOCUS: ENGINEERING

INDUSTRY OVERHEAT? The oil and gas industry in South Africa has been depressed for some time, and markets surrounding including Angola, Uganda, Mozambique and Zambia have all been hit by unpredictable commodity prices and various other trading conditions.

Asked if English sees an immediate uptick, perhaps resulting from confidence after large offshore discoveries, he is clear in his assessment: “Generally speaking, no. The market is generally very depressed and very flat.

Mozambique is giving a little hope but there is scepticism about what the spinoff will be for South African businesses and the timing thereof.”

Despite this, he remains optimistic about the future of the sector in general and Prommac in particular. There is a shift of the large oil players business models towards diversified offerings and low carbon emissions and this will have a direct upliftment over time for

existing plants.

“There have been numerous bankruptcies filed by big-name businesses. Share prices have crashed and a lot of them are taking a beating.

It’s strange that we are bucking the trend completely in this space – we are the only company, that we are aware of, that has seen positive growth year-on-year over the past five years in a relatively low confidence, depressed market.”

The CEO is not happy about conditions across the sector even though his business has come through relatively unscathed. He says negativity delays investment and causes talented people to transfer their skills to other industries and other geographies. It also makes the industry vulnerable to incorrect views. However, Prommac, in its relatively short life, has already been through several economic cycles and has always come out with strength. English puts this down to truly

// WE ARE THE FIRST FULLY TECHNICALLY ACCREDITED DRONE OPERATOR FOR A MAJOR GLOBAL CHEMICALS CLIENT AND WE HAVE BEEN PROVIDING SOME REALLY INTRICATE, DETAILED, INTERNAL BOILER, TANK, STACK AND PIPELINE INSPECTIONS // understanding the business of clients and keeping a team motivated when the clouds are building.

“We are upbeat and we are fortunate that we have had a bit of luck in the decisions we have taken.

We understand our client’s challenges and we understand that they are under pressure from an economic perspective, and that just means that we have to reposition our business to help them.

That doesn’t mean we have to be cheaper; it means we have to offer a better value proposition to help our customers ultimately make more money.”

INNOVATION IS KEY Adding new technology to the Prommac portfolio, leveraging from the rest of the CG Group, upskilling employees quickly, and ensuring the company culture reflects a preparedness for quick changes in business direction, all comes as a result of Prommac’s commitment to innovation and culture.

In order to display the company’s commitment to innovation, it signed up as the headline sponsor of the South African robotics team, the SpringBots, from 2018 who compete annually in the Global Robotics Olympics.

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PROMMAC

The contest is annually themed around the ‘14 Grand Challenges of Engineering’. Each year, a different Grand Challenge takes focus and young robotics engineers gather to offer up solutions. Interestingly, South Africa could not raise the funding to send the team to compete in 2018 but other African nations had been involved since the competition’s inception.

“I was in Los Angeles in Jan 2018 and heard about the dilemma for team South Africa so we decided to jump onboard. They went to the world championships in Mexico in 2018 and finished sixth out of 192 participating countries. It was unexpected and Walt Disney actually awarded them a Gold Medal for Creativity and Innovation for their journey in the competition. They finished behind the USA, Singapore and other top economies but managed to beat South Korea and other powerhouse innovators of the world.

“We have taken a strategic view to really support anything that is related to innovative manufacturing or something that could potentially be a part of our future. We think robotics will have some part to play but being behind the SpringBots is more about inspiring hope for our country and its young people and is a clear indication that we can compete in this space if we build the right eco-systems. As a result, it helps to keep us in the know and positions us slightly differently,” says English.

This type of investment is not something that every company can put up and, much like the Prommac investment into technology solutions for advanced data processing, it is something which really separates the company from the rest.

“It’s hard to put a monetary value on new technology as it’s not always a direct revenue generator,” admits English. “We know it make us more efficient and to try and understand what that equates to in terms of actual value is very difficult. Investing in training of people and technology is very hard to determine ROI, and if you can’t get a ROI

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it’s difficult to get budgets approved.

Being a very entrepreneurial, privately owned business, competing in a large generally publicly owned space, we are a lot more agile and quicker with decision making processes.”

And the speed at which the company makes decision and shifts approach allows it to negate the challenges that larger, more-corporate behemoths are often faced with.

English takes responsibility for ensuring that Prommac, and other CG Group companies, ecosystem is crack-proofed.

“I spend a lot of time figuring out how to break our companies and put them out of business. If I can figure that out, then I can figure out new ideas and solutions to prevent that,” he says.

This ability, where management has a finger right on the pulse of the business, is not always the case

in big engineering firms. Ongoing investment into innovative technology solutions that help drive a culture of improvement and excellence are not always the norm across the industry, and it is these characteristics that set Prommac apart.

By becoming more efficient and therefore more valuable, Prommac’s clients are receiving more benefit than ever before. As long as this continues, this will be a business that grows.

WWW.PROMMAC.COM

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WBHO CONSTRUCTION

WBHO Surviving and Thriving in Torrid Times PRODUCTION: Timothy Reeder

Wilson Bayly Holmes-Ovcon (WBHO) Construction is among the largest construction companies in Southern Africa, with decades of experience in major projects spanning Africa, the Middle East and Indian Ocean islands. South Africa’s construction sector has been a brutal environment to operate in over the last decade, but WBHO continues to stand firm amid the hardship and challenge which has seen so many others crumble. www.enterprise-africa.net / 17

INDUSTRY FOCUS: CONSTRUCTION

//

Today, the WBHO group is one of the largest construction companies in Southern Africa and is listed on the JSE, driven by a core of dedicated, hands-on management professionals whose cumulative experience spans decades of major construction projects.

FULL SPECTRUM WBHO’s offices are strategically positioned in Johannesburg, Cape Town, Durban and Port Elizabeth, with construction activities covering the full spectrum divided into three main operating divisions: Building Construction, Civil Engineering and Roads and Earthworks. WBHO also entered the Australian market in 2000 after acquiring an initial 40% interest in Probuild Constructions, its subsidiary with headquarters in Melbourne.

“A decade later, with WBHO’s support, Probuild has developed into a tier one contractor having shown consistent yet controlled growth

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throughout the period.” Key to the success of this relationship has been the parallels in the values, culture and attitudes of both sets of management.

“WBHO’s building division is recognised as a leader in the South African building industry,” the group goes on, with his arm of its business having gained numerous plaudits over the years for its role in such milestone achievements as PWC Tower and Atterbury’s Mall of Africa. “Having established a reputation for quality, reliability and delivering against budget, the division regularly exceeds client expectations and is able to negotiate a number of projects every year as a result.”

The civil engineering arm serves to add diversity to the division’s margin streams, and strengthens the overall earnings of the group with some noteworthy civil works and expansion projects.

The roads and earthworks section of the group operates across multiple traditional civil engineering

// YOU CAN FOCUS ON BUSINESS PROCESSES AS MUCH AS YOU LIKE, BUT IT OFTEN COMES DOWN TO THE EXPERIENCE AND JUDGEMENT OF INDIVIDUAL PEOPLE // disciplines, and has undergone strategic acquisitions in order to gain exposure to a number of additional specialist disciplines. “The division has a particular strength when operating in Africa,” it expands, “and has developed a successful formula for trading in the region.”

Setting this outfit apart from the crowd is a modern fleet of plant and effective teams, all of whom are encouraged to work in unison with consultants and clients.

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INDUSTRY FOCUS: CONSTRUCTION

AUSTRALIA FAILURE At one time looking like becoming one of WBHO’s crowning glories to date, the upset of the Western Roads Upgrade (WRU) design and construct project has taken a heavy toll on the group. Consisting of the widening of roads and upgrades to various intersections in suburban Melbourne, WBHO Infrastructure was appointed as the lead contractor responsible for the delivery of the project to the concession company: eight high-priority road upgrades, almost 30 kilometres of duplicated lanes and in excess of 260 kilometres of road rehabilitation and maintenance for 20 years across Melbourne’s west formed the bulk of the brief.

Unsurprisingly, the Western Roads Upgrade project is Victoria’s largest single investment in arterial roads to date. It is a first of its kind for an arterial roads network in Australia, with its availability-style public-private partnership, and will help enormously to

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not only support the rapid population growth in Melbourne’s west, but to create jobs for local workers and provide less congestion on the roads.

The interpretation of the project’s technical specification, however, has caused significant tumult and subsequent losses, as WBHO CEO Louwtjie Nel explained in February.

The misunderstanding boils down to the underestimation of the physical work required to meet the output specifications of the contract, and has been blamed for a plunge in operating profit from R510-million for the six months to end December 2017, to R3million for the same period last year.

He added, however, that delivery of the project had now started with a strong project team in place, to ensure performance against the revised cost estimates included in the forecast loss.

“You can focus on business processes as much as you like, but it often comes down to the experience and judgement of individual people,” Nel elucidated

// WBHO’S BUILDING DIVISION IS RECOGNISED AS A LEADER IN THE SOUTH AFRICAN BUILDING INDUSTRY // for Engineering News, adding that the provision for the WRU project negated otherwise solid results within WBHO. “This could have been a very good six months for us.” The African business, including South Africa, continued to go against the grain and perform well amid turbulent and lacklustre market conditions. In the UK meanwhile, the Byrne Group, in whom WBHO acquired a controlling stake in June 2018, returned to profitability and the recently acquired Russells Limited delivered profitability in line with expectations.

WBHO reported an increase in

WBHO CONSTRUCTION

revenue from R18.1-billion to R20.1billion, owing largely to the first time consolidation of the UK businesses. The group’s total order book reached R50.1billion at the end of December, a rise of 1.9% from the close of June 2018.

SURVIVAL MODE “SA’s construction industry is being demolished,” is BusinessDay’s stark take on the current state of the sector. “While the construction industry is notoriously cyclical, the current mix of a depressed SA economy, high levels of national debt and low infrastructure spending is proving toxic as contracts dry up.”

“Those construction companies that are SA-orientated have gone from bad to worse in the past 12 months,” Marc Ter Mors, head of equity research at Johannesburg-based SBG Securities, said. “In SA, volumes are low, pricing is under pressure and companies are taking on more risk to win contracts, so margins are thin and that hits cash flow.

There are no real segments to hide in.”

In April, one of the country’s flagship construction and engineering companies, Group Five, joined a sadly burgeoning list of building firms to have closed its doors. One of the most shocking cessations, it stated that it would retrench a large chunk of its 7000 workforce as it had not been able to service its debt nor to grow its client base.

The summer months onwards have brought an unlikely renewed hope, though, and as gaps are left by disappearing businesses these will need to be filled by sturdy, reliable and reputable firms. Last year, too, president Cyril Ramaphosa announced the creation of a massive, centralised infrastructure fund, run by experts in the presidency and using private sector managers. The fund is expected to invest R400 billion over the next three years.

If construction demand does start to turn, there is one local firm in particular that has been pegged

to be supremely well positioned by Schalk Louw, portfolio manager and strategist at PSG Wealth Old Oak. “If you have patience and you aren’t short-sighted, I believe there is a good opportunity and solid value in Wilson Bayly Holmes,” he decreed.

“Yes, they have certainly made a mistake in Australia,” he admitted.

“But it looks like it may be a one-off mistake, and importantly, it looks like they have made sufficient provision for it.” WBHO is still generating good cash flow, with stable growth and very little debt. While the current implosion in the construction sector is proving devastating for some; “it does offer opportunities for companies like WBHO which has been managed conservatively,” Louw rounded off.

WWW.WBHO.CO.ZA

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HAW & INGLIS

Construction Revival Suits H&I Down to the Ground PRODUCTION: William Denstone

Established in 1984, Haw & Inglis (H&I) began life taking on minor infrastructure and services contracts before rapidly evolving to take on huge road and reconstruction projects, as well as building construction contracts. “H&I has established itself as one of the leading independent contractors operating throughout South Africa, recently expanding market focus to include certain SADC countries,� the company sets out.

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INDUSTRY FOCUS: CONSTRUCTION

//

Based in the Western Cape, H&I specialises in projects of significant size and complex scope which encompass road construction, road rehabilitation, infrastructure and building construction, operating throughout South Africa and neighbouring states.

The 20km stretch from Vredenburg to Velddrift completed in 1986 represented H&I’s first major road contract, and has been followed since by ever bigger rehabilitation jobs. Among the best examples of its meteoric rise is the Chapman’s Peak Reconstruction Project, in which H&I is a 40% partner in the Entilini Concession.

Having commenced in 2002, it has seen the company design, build, operate and continue to maintain the road for the ensuing 20 years.

In a timeline peppered with such highlights, the construction giant’s work on the 2010 World Cup also stands out

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as being especially noteworthy, with its three infrastructure projects on the Western Cape exposing its work much to a much wider and larger audience.

“Haw & Inglis focuses on being competitive and innovative,” the company says, “to continue offering its clients superior personal service whilst providing employees a culture that recognises and rewards independent initiative.”

SPECIALIST SKILLS Constantly building on its skillset, as H&I has grown in size and scope so have its capabilities. At the turn of the millennium it established Great Karoo Crushing (GKC), and in 2003 competed its first project outside of South Africa - the 120km road from Rosh Pinah to Aus in the Karas Region of southern Namibia.

During the past thirty-five years the group has developed into a

multi-disciplinary business and is now a leading independent contracting company operating throughout South Africa and SADC territories.

The holding company comprises two primary business units - Haw and Inglis Projects, which has its primary focus on building construction and H&I Construction, focused on all aspects of road construction, rehabilitation and infrastructure.

Key acquisitions in its lifetime, firstly of Peak Projects and later of Ursa Civils, have been vital to H&I’s rapid growth: these have boosted H&I’s specialised concrete construction capacity markedly, while adding crucial wind farm and wastewater treatment capabilities to its armoury.

These were put to perfect use in the construction of H&I’s first wind farm: the West Coast 1 has a capacity of 94 Megawatts and was inaugurated at the close of 2015.

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INDUSTRY FOCUS: CONSTRUCTION

“Whilst the company’s core focus is major National and Provincial arterial roads and urban highways, its expertise extends to urban

// WE EXPECT A SURGE IN ROAD CONSTRUCTION PROJECTS OVER THE MEDIUM-TERM FRAMEWORK AS PART OF THE BROADER NATIONAL EFFORTS TO INVEST IN ECONOMIC INFRASTRUCTURE // 26 / www.enterprise-africa.net

infrastructure and select institutional, industrial, commercial, residential and other building projects,” H&I proudly sums up of the result of its journey to date. Expanding its capacities and capabilities continues to bring H&I into the mix for an ever-wider array of jobs, and most recently landed it the contract for the construction of a new school building for Crestway High School, in Cape Town.

The tender granted to Haw & Inglis Projects is for a 14-month, R56m project, to include space for 1110 children and 30 classrooms, as well as a 555m² hall and administration block. It was warmly welcomed by all at the school, with teacher Ashley Jaftha summing up the prevailing mood and the positive reverberations it will cause. “We are extremely happy and we are looking forward to it. It

has been a long time coming, so we are excited and we think it is going to uplift the school, community and the broader area as well.”

Haw & Inglis was also integral in the Transnet National Ports Authority’s (TNPA) R542-million injection into several major infrastructure and equipment projects at the Port of East London. Invested over recent years as part of Operation Phakisa, it includes the R219-million refurbishment of the dry dock to support ship repair and marine manufacturing and the R108-million project to rehabilitate the 83-metre wharf adjacent to the Princess Elizabeth Dry Dock and Latimer’s Landing.

“Construction contractor Haw & Inglis sourced labour and material locally, in line with Transnet’s supplier development requirements,”

HAW & INGLIS

// HAW & INGLIS FOCUSES ON BEING COMPETITIVE AND INNOVATIVE TO CONTINUE OFFERING ITS CLIENTS SUPERIOR PERSONAL SERVICE // commented TNPA acting port manager Alvin Singama, going on to hint at the possibility of further such lucrative and progressive work for H&I. He outlined that the port was gearing up to further enhance its capacity with an expansion of its automotive facilities and the upgrade of maritime engineering offerings, all of which would be to H&I’s gain.

POISED FOR GROWTH 2010’s World Cup was a key time for Haw & Inglis, and it also marked the last time that the South African construction industry experienced anything approaching a real boom.

However, despite a technical recession in the first and second quarters of this year, 2018’s economic instability and poor performances

by State-owned enterprises and its negative effect on civil construction, there is cause for optimism yet.

The South African government’s economic stimulus plan is to pump billions into infrastructure development, and research giant Fitch Solutions expects 2019 to be the year the sector finally emerges from recession, with its 2019 sub-Saharan Africa construction growth report positing year-on-year growth of 6.8%.

Total infrastructure spend is expected to total R855-billion over the next three years, an increase of 2.5% on last year.

Economist Dr Roelof Botha, who compiles the Afrimat

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“The gradual implementation of the new growth plan published by the National Treasury places emphasis on creating new infrastructure and targeting sectors with high growth and employment creation potential,” he explained, “which could consolidate the latest modest recovery of construction sector activity and lead to a new sustained growth path.”

The South African National Roads Agency (Sanral) plans to issue tenders for major road construction projects

worth more than R40bn as part of this plan, which, as its famed speciality, will be music to H&I’s ears. “We expect a surge in road construction projects over the medium-term framework as part of the broader national efforts to invest in economic infrastructure,” said Louw Kannemeyer, the roads agency’s engineering executive.

“We are confident the R40 billion in tenders that are in the pipeline will benefit the broader construction sector and contribute to the growth of new enterprises who have been excluded from major contracts in the past.”

WWW.HAW-INGLIS.CO.ZA

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BRIGHTS HARDWARE

Doing More Than Ever

For Local Building Trade PRODUCTION: Manelesi Dumasi

Brights Hardware continues to buck the trends in the retail and building industries by achieving ongoing growth and investing in expansion that sees the company expanding across the Western Cape. CEO Orlando Luis updates to Enterprise Africa on fantastic progress over the past 12-months. www.enterprise-africa.net / 29

INDUSTRY FOCUS: CONSTRUCTION

//

Brights Hardware has grown to become one of the leading hardware, DIY and building suppliers in the Western Cape.

Starting as an individual family owned DIY store specialising in electrical goods, the business grew steadily and started to build a product range that now sits as one of the largest and most diverse in the industry. This is a success story like no other, that has benefitted the community, the industry, and the country as a whole.

Delfino Luis established the first Bright Hardware store in Boston, Cape Town in 1971 alongside his wife. Today, the company is run by their son, CEO Orlando Luis. Like his mother and father, Orlando is exceptionally ambitious and has a desire to develop the communities in which Brights operates.

In December 2018, Orlando Luis told Enterprise Africa that the company was busy with a five-year strategic growth plan which would see the expansion of the product range,

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store network, and employee base.

At the time, the company was busy with the opening of its eighth and newest store in Mitchells Plain and relocating its Stikland branch to an impressive new site. While expansion and upheaval of this nature could be disruptive and challenging for many organisations, Brights is comfortable with change and embraces growth.

“We have completed the move of our 25 year old Head Office in the Stikland industrial area to our new 6000 m2 Brackengate store, located on the eastern growth corridor called Bottelary Road, which comprises of a new industrial zone and residential components,” Luis tells Enterprise Africa.

“This single building consolidates three buildings operations, retail, admin and building yards into one plot. Previously, this was spread across three smaller plots. This should help to improve operations, reduce expenditure, and increase turnover and profit in the coming months.”

Luis has always followed a careful and considered growth strategy, encompassing steady geographic expansion outwards from the centre of Cape Town. While he is not yet ready to consider expanding beyond the borders of the Western Cape, he always has the next phase in the back of his mind. The next stage will be retail store number nine, and further expansion along the coast in the north of the province.

“We are busy with preparations

// WE HAVE COMPLETED THE MOVE OF OUR 25 YEAR OLD HEAD OFFICE IN THE STIKLAND INDUSTRIAL AREA TO OUR NEW 6000 M2 BRACKENGATE STORE //

BRIGHTS HARDWARE

// WE ARE CONFIDENT THAT TRADING WILL IMPROVE IN THE COMING MONTHS TO REALISE A GROWTH IN EXCESS OF 5% // for the possibility of the ninth branch opening in the northern growth corridor along the R27 Highway by the west coast. We will also be implementing expansion of our Uitzicht branch in 2020 which is located on the north-eastern growth corridor of the Cape Peninsula.”

Traditionally, the company has taken the strategy of growing in an area of 100km surrounding the city,

and installing stores in increments of approximately 10km from each other.

This way, anyone working on any project will always be in easy reach of a Brights outlet.

The sustainable expansion of Brights continues internally with the development of people and clients. As the company’s reach grows across the Western Cape, the brand has become entrenched in the mind of builders and DIYers but Luis has always been keen to diversify and modernise the make-up of his customer base. In February 2016, he told Enterprise Africa that bringing more women into the industry was important, and last year he confirmed that progress in this regard had been positive.

“We have increased our female client base of Card Holders from 19% to 27% and will continue to influence

females and the youth in the hardware retail space,” he says. “We have been influencing many schools and social development partners with training programs to assist females and the youth to use their hands to build hardware projects and to provide practical solutions for them to learn from and to become acquainted with tools and power tools.”

With young people now often choosing technology-based pursuits over working with their hands, being able to demonstrate the advantages of skill with tools is valuable for a business like Brights.

Of course, the more than 850 Brights people are key in delivering any message to the client base, and so the company continues to invest heavily in its human capital.

“We have managed to provide

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INDUSTRY FOCUS: CONSTRUCTION

// WE ARE ALSO NOW IMPORTING OUR OWN RANGE OF TOOLS, WELDING AND INDUSTRIAL MACHINERY UNDER A STALLION BRAND TO SERVICE THIS MARKET AND TO PROVIDE COST SAVING SOLUTIONS TO ALL OUR CUSTOMERS // development for more than 150 management and staff with some form of certification in various courses and internally promoted over 100 management and staff members

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along their career paths throughout the company. We will continue to focus on skills courses in the hardware industry,” says Luis.

The market is tough for retail, and for hardware retail in particular.

This could be down to economic performance (locally and globally), investor confidence, unemployment, changing consumer patterns or a host of other issues. Stats SA reported in 2017 that more than R30,000 was spent every second in retail stores.

However, there was a decline of 0.7% in the hardware sector. For this reason, Brights continues to invest in its digital presence, promoting its online store and making more and more products available for online purchase. By 2022, the company hopes to have a range of more than 20,000 products available online.

Another effort to stay ahead of the changing market comes in the form of a drive to supply into

independent hardware retailers, building the industry and growing the Brights Hardware impact further.

“We have connected with more than 10 independent hardware stores to influence them to source products from us to grow their range of products in their stores and sustain some growth during these difficult trading times with a lack of customer confidence,” says Luis.

This is a fantastic opportunity for those independent retailers and allows them access to a fantastic range, at reasonable prices, and within quick and easy reach.

“We are a proud member of EST Africa, our independent procurement partner, that has grown from 100 independent stores in 2012 to around 700 in 2019 of which we are the largest contributor of in the Western Cape. Our influence ensures that all independent hardware stores, including ourselves, benefits from

BRIGHTS HARDWARE

// WE ARE BUSY WITH PREPARATIONS FOR THE POSSIBILITY OF THE NINTH BRANCH OPENING IN THE NORTHERN GROWTH CORRIDOR ALONG THE R27 HIGHWAY BY THE WEST COAST // best possible rebates the group obtains from our common suppliers,” details Luis.

As well as building relationships with end users, Brights has been busy growing its commercial relationships with business clients, helping to drive demand across its product offering.

“We have also amalgamated

our wholesale division with an independent industrial wholesaler called Cape Engineering Supplies who added an additional 200 member trade-account customers to our books, and provided these customers with a comprehensive hardware and technical product offering at wholesale price.

“We are also now importing our own range of tools, welding and industrial machinery under a Stallion brand to service this market and to provide cost saving solutions to all our customers,” explains Luis.

“We have also increased our support with our strategic BBBEE partners to provide tender possibilities at our stores and have shared our systems and resources to grow their business in the hardware retail sector,” he adds.

While the Brights brand continues to grow, expanding quickly but sustainably across the Western Cape,

the family feel and the community dedication that saw the business succeed in the early days remains.

This focus is proving fruitful for the company, and Luis is cautiously optimistic about the future.

“Growth has been hard to come by in 2019 especially during the winter months and an election year where customers and investors are not willing to commit in the construction and hardware sector, but we are confident that trading will improve in the coming months to realise a growth in excess of 5%,” he concludes.

WWW.BRIGHTS.CO.ZA

www.enterprise-africa.net / 33

LHWP

Water, Water,

Everywhere‌ PRODUCTION: William Denstone

A multi-phased project to provide water to South Africa’s Gauteng region and generate valuable hydro-electricity for Lesotho, the Lesotho Highlands Water Project (LHWP) was established in by a 1986 Treaty signed by the two governments. Phase I of this crucial mega-project was completed in 2003 and inaugurated in 2004; attention switches now to Phase II as preparations and construction activities ramp up in intensity.

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Katse Dam

INDUSTRY FOCUS: CONSTRUCTION

//

Lesotho is blessed with an abundance of water.

Completely surrounding it, meanwhile, is South Africa, a much richer country but one which also suffers from a shortage of water. These mutually beneficial circumstances led to the devising of the ambitious Lesotho Highlands Water Project (LHWP), one of Africa’s largest ever engineering undertakings.

While its aims are fairly straightforward, the intricacies of such a project are predictably rather complex. In essence, it entails damming some of Lesotho’s major rivers, the majority of which flow

36 / www.enterprise-africa.net

// PHASE II IS STEPPING AHEAD PURPOSEFULLY WITH 2018 HAVING BEEN A BUSY YEAR FOR THE BOTH THE WATER TRANSFER AND HYDROPOWER COMPONENT // south into the Senqu - the Orange River to South Africans - a process which has created large artificial lakes.

The water from these new lakes is then diverted north through tunnels under the mountains to South African rivers, which in turn lead to the Vaal River System to supply the densely populated, urban and industrial region around Johannesburg and

Pretoria. In Lesotho, it involves the rivers Malibamatso, Matsoku, Senqunyane and Senqu, and is the largest water transfer scheme that Africa has seen.

ONGOING DEVELOPMENT The award-winning, multibillion Rand, bi-national LHWP is spoken of nearuniversally as an African success story,

LHWP

having paved the way for peaceful cooperation and mutually beneficial socio-economic development across the continent since its founding six decades ago. It was brought about by a treaty signed between the governments of Lesotho and South Africa in 1986, as a priority strategy to reduce poverty, stimulate economic growth and improve the livelihoods of the people of the two countries.

Lessons learned from the devastating droughts of the late 1960s showed that South Africa had to find an additional, reliable bulk water source to ensure that its industrial heartland was not hindered again. Thus formed a joint technical committee between Lesotho and South Africa in 1978, with in-depth feasibility studies completed in April 1986.

These revealed the most viable option to be a four-phased project that would capture the excess flows of the upper Senqu catchment and transfer the water from a series of storage dams via tunnels to South Africa. Hydroelectricity for Lesotho would also result, before delivering the mountain water to the homes and industries of South Africa, while creating revenue for Lesotho and providing jobs.

Phase IA was completed in 1998 and comprised the major water transfer and hydropower components.

Among the most notable was the construction of the iconic Katse Dam, the tallest in Africa at nearly 200 metres high and now one of Lesotho’s most popular landmarks, designed to divert water from the Senqu (Orange) River to the Ash River. A 48.2-kilometre-long tunnel was also put in place to transfer water from the Katse reservoir to the Muela hydroelectric power station in northern Lesotho.

The completion of Phase IB followed swiftly in 2002, and saw the Mohale Dam built on the Senqunyane River as well as a tunnel to transfer

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www.enterprise-africa.net / 37

INDUSTRY FOCUS: CONSTRUCTION

// PHASE II OF THE LHWP OFFERS CONTRACTORS WORK CONTINUITY FOR A NUMBER OF YEARS AND THE OPPORTUNITY TO GAIN VALUABLE EXPERIENCE ON A LARGE INFRASTRUCTURE PROJECT //

38 / www.enterprise-africa.net

water between Mohale and the Katse reservoir. The system is interconnected to facilitate water transfer in either direction for storage in Mohale, or for transfer to South Africa through the Katse reservoir.

PHASE II ACCELERATES The LHWP is one of the largest ongoing development projects in the world, and in 2006 the South African Institution of Civil Engineering (SAICE) named the LHWP as the Most Outstanding Engineering Achievement of the Century. Just prior, in 2005, a Phase II feasibility study was undertaken, in two stages, to identify further development opportunities.

This culminated in the recommendation of the Polihali Dam and transfer tunnel for implementation, and is set to increase the current supply rate of 780-million cubic metres a year incrementally to more than 1.26-billion cubic metres a year. Phase II of the LHWP will be implemented in two parts: a water delivery system to augment the delivery of water to South Africa and a hydropower generation system, which will boost the current electricity generation capacity in Lesotho.

“Phase II of the Lesotho Highlands Water Project comprises the construction of the Polihali Dam and Transfer Tunnel, hydropower generation, social and environmental programmes,” summed up Minister of Water, Honourable Samonyane Ntsekele, at the award last year to a joint venture of Sinohydro SA/Nthane Brothers of the first construction contract on Phase II of the LHWP. “Phase II offers contractors work continuity for a number of years and the opportunity to gain valuable experience on a large infrastructure project. The combination of local, regional and international expertise at the consulting and contracting level will also contribute to skills transfer

LHWP

and capacity building within the construction and engineering sector.”

The Polihali north-east access road project will upgrade the existing 16km-long, gravel road which runs from the town of Mapholaneng in north-eastern Lesotho and the Polihali dam site to a Class A surfaced road. The road will give access to the dam site for construction vehicles and better ease of movement for communities in the surrounding area.

January 2019, meanwhile, saw the LHWP launch the construction pre-qualification for the Phase’s main works: the Polihali Dam and Polihali Transfer Tunnel. “The call for Expressions of Interest for the construction of the 165m high Polihali Dam and the 38km long Polihali Transfer Tunnel is expected to attract the interest of major engineering and construction companies, and we encourage suitably experienced contractors to join forces with local contractors and apply,” announced Tente Tente, Phase II Divisional Manager.

“Implementing large scale infrastructure projects combines ‘maths and music’: the maths of delivering multiple highly technical engineering components within a specific timeframe and budget, and the music of the softer skills of diplomacy, communication, social, environmental and community protection, while considering the interests and expectations of multiple, diverse stakeholders.

“Phase II is stepping ahead purposefully with 2018 having been a busy year for the both the water transfer and hydropower

// IMPLEMENTING LARGE SCALE INFRASTRUCTURE PROJECTS COMBINES ‘MATHS AND MUSIC’ //

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components,” Tente went on, and fittingly, in August this year we learned that the LHDA had awarded a further two separate contracts for the construction of the Polihali Western Access Road (PWAR) (West and East) Joint Venture and Rumdel/ AC JV respectively.

This is the second road construction contract awarded as part of Phase II Advance Infrastructure and the fifth and sixth of approximately a dozen advanced infrastructure contracts for LHWP Phase II. Construction work for PWAR West began on 12 July 2019 and is expected to be completed by 11 June 2021, while the PWAR East works commenced on 23 July 2019 and are expected to be completed by 22 June 2021.

“The quality roads constructed

under Phase II will not only provide access to the Polihali Dam construction site but will also significantly influence sustainable economic growth through tourism and industrial development,” concluded Tente, as the major access corridor for construction equipment, materials and tunnel boring machine components for the Polihali Dam and Transfer Tunnel begins to take shape to allow this extraordinary infrastructure project to enter its next chapter.

WWW.LHDA.ORG.LS

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DORNING GROUP

Strong, Sustained Growth Sees Dorning Group Cement Position as

Regional Leader PRODUCTION: Karl Pietersen

The family-run Dorning Group is going through a period of significant expansion, opening a brand-new plant in a new area, ready to take on exciting new projects, offering quality products to important projects. This is a company battling against negativity in the construction sector, resulting in a fantastic business and a very positive outlook.

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INDUSTRY FOCUS: CONSTRUCTION

//

Times are tough for those active in South Africa’s worsening construction sector.

For years now, the industry has seen a dramatic decline thanks to reduced spending and investment, and a nonexistent project pipeline at the top end.

A stagnant economy has resulted in major retrenchments across construction as big-name businesses struggle to stay afloat – the walls are truly closing in for those that are not prepared and are not operating sustainably.

Fortunately, the industry is not entirely full of negativity. There remains pockets of quality, and companies that have not been sucked into the downward spiral.

The Dorning Group is the perfect example. Located in Kokstad, KwaZuluNatal, the group has grown from a twoperson operation to become a regional centre of excellence, providing quarry services, dolerite stone aggregates, mobile crushing, ready mix concrete and asphalt, cement blocks, roof tiles, pavers, and transportation solutions.

Established in 1991 by Ivan and Shanelle Dorning, the group has been through several recessions and various economic and social transformations, always coming through with strength and resilience.

// WE ARE SEEING PHENOMENAL GROWTH IN THE HOUSING PROJECT MARKET. WE SUPPLY THE BLOCKS TO A NUMBER OF HOUSING PROJECTS AND WE ARE DON’T SEE THEM SLOWING DOWN AT ALL // 42 / www.enterprise-africa.net

Today, the business employs around 200 people and is expanding its presence, despite the prevailing conditions in the wider construction industry.

Second generation leader, Tiege Dorning who heads up the group’s transportation and blocks division, tells Enterprise Africa that expansion is complete in Mount Frere and well under way into Matatiele and Lesotho.

MATATIELE Located around 75km from the Dorning Group HQ, a new plant has opened in Matatiele where the company is looking to service regional housing projects and municipal surfacing contracts.

“We are in the middle of the expansion right now,” details Tiege. “For us to take the risk and put in this new plant was an obvious decision. We did look at it, but we didn’t want to be left behind, we want to go with it. We had big demand in the block market and the transport between Kokstad and Matatiele is a long way so we decided, instead of having the delay of trucks on the road and the costs associated with that, we would put up a whole new quarry and block yard in Matatiele. We are currently targeting the block market but since we’ve been here, we have been running as a quarry as we have not completely finished completely automating the block yard yet. The quarry has taken off phenomenally.”

While major infrastructure projects may have slowed in recent years, housing projects – specifically social housing – have boomed. Whether formal - sponsored by the public or private sector - or informal, put up by local builders who buy from the local hardware store, this type of construction remains important for the country.

According to a General Household Survey by Stats SA, more than half of South Africans living in formal dwellings own their homes and these statistics offer plenty of room for further development.

Tiege highlights housing projects and road surfacing as those which have

// WE DECIDED, INSTEAD OF HAVING THE DELAY OF TRUCKS ON THE ROAD AND THE COSTS ASSOCIATED WITH THAT, WE WOULD PUT UP A WHOLE NEW QUARRY AND BLOCK YARD IN MATATIELE // helped the company to boom while others have struggled.

“The economy is tight and everyone is looking at the exchange rate worrying about whether they should expand but the amount of people we see coming into our company on a day-to-day basis - in Kokstad, Matatiele and Mount Frere – means we cannot see the company not growing, and the economy not growing. Yes, we are not seeing growth in big numbers like others but we are certainly seeing more traffic, whether it’s through Massmart projects or smaller, individual projects; we are seeing huge growth,” he says.

Early success in Matatiele is proof of a sound strategy. “It’s been very good on the turnover side and has done more than we expected, even though it is smaller than the original plant in Kokstad,” explains Tiege.

“The surrounding areas do not really have a central point so Matatiele can service Mount Fletcher, Lesotho and Cedarville, and this is now the only option as there is not another point where people can go to buy from. Matatiele is a booming town and there is a big road project coming up between Kokstad and Matatiele so there is currently a lot more people in the area than normal.”

As the new plant grows to full capacity, the Dorning Group will employ a further 21 people, contributing the

DORNING GROUP

regional economy. From here, the company will take its products and services across new areas.

“We are going to deliver into Lesotho from Matatiele as there is only a border between us. That will be the target as soon as we are fully established,” says Tiege. “The challenge is trying to transport into different areas in Lesotho and the other areas around us. This is the expansion that we are looking at right now and this was also a reason for us choosing to expand into Matatiele. We are not looking at further expansion yet and we will not consider further growth until we have completely finished with this phase.”

STRONG PRODUCT RANGE Stones, concrete blocks and asphalt produced by the Dorning Group have a reputation as some of the best around.

Strong, reliable, and long-lasting, these products are a testament to the experience of the company.

“We’ve put a lot of work into our recipe and our concrete is phenomenal,” admits Tiege.

“We will be selling the same current product range including concrete blocks and asphalt from Matatiele. Our product range helps us; if the blocks are down, the concrete covers; if the concrete is down, we push the blocks or the asphalt - it’s a balanced range. Currently, blocks are very popular and that is why we have started the new block yard.”

As the bigger projects in the area start to gain traction, Tiege is also keen to kickstart the company’s roof tile plant which is not yet at full capacity, along with other products to offer a more complete solution.

E L B A D N E P E D E C N A M R O F PER

“We would love to look for further growth,” he says. “Our concrete roof tile plant in Kokstad isn’t fully commissioned it yet – that is in the pipeline for the future. We would love to look at concrete piping and lintels. There is definitely a lot more that we would like to do but we are trying to get on top of what we have right now so that everything is running smoothly.”

Eventually, if growth in the housing market continues, almost the entire home could be sourced from the Dorning Group.

“We are seeing phenomenal growth in the housing project market.

We supply the blocks to a number of housing projects and we are don’t see them slowing down at all. Perhaps it’s because we’re in the Eastern Cape and there is a market for that type of project here,” suggests Tiege.

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INDUSTRY FOCUS: CONSTRUCTION

Despite its regional status, there is no shortage of opportunities for the Dorning Group and the family management team that runs the company is keen to always follow opportunities, wherever they might be.

“We are just trying to take the market as it is and continue doing business where we sit. Right now, our focus in Matatiele and last year we did branch out into Mount Frere where we put up a concrete plant, which is a complete duplicate of what we have

// OUR CONCRETE ROOF TILE PLANT IN KOKSTAD ISN’T FULLY COMMISSIONED IT YET – THAT IS IN THE PIPELINE FOR THE FUTURE //

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in Kokstad, so we just have to keep following the demand in the market.

Whether it’s local or elsewhere, if there is demand we will go,” says Tiege.

DORNING THROUGH AND THROUGH 28 years in and the Dorning Group remains a family owned business with the founders still involved. While the second generation now takes a lot of the responsibility, Ivan Dorning still oversees progress and helps drive the expansion strategy.

“He was in the building industry with his father-in-law and he saw the opportunity in the market for a business like this,” remembers Tiege. “He looked at the idea of doing it with my grandfather but when it came to starting the business officially, my grandfather pulled out and my father carried on alone. It was a risk, but it was a risk that paid off.”

The family works closely together, and this is very beneficial for business.

Where some families struggle to sit

around a dinner table, this is a close-knit group that works hard for each other.

“For us, it’s nice,” admits Tiege. “We are split up into different divisions but we run under one roof. We have Dorning Crushers run by my brother Russ, Dorning Asphalt and Concrete run by my brother-in-law Dustin, Dorning Transport and Blocks which I run, and then we have the financial side which is run by my mother and sister-in-law. My father still oversees the entire group and ensures everything continues to run smoothly.”

He explains that all members are happy to step in and help should another need assistance. All departments run independently but everyone is happy to join another when there is a need. “It all runs very smoothly.” This culture of collaboration and support has been instilled throughout the company.

In the future, the hope is for the company to remain a family business and the current management is already considering a succession plan.

DORNING GROUP

“It’s most definitely something we would like. We are not working so hard to not pass the business onto the next generation. It’s a family thing and it must carry on,” Tiege states.

A PHENOMENAL RUN The growth story of the Dorning Group, in what has been very challenging market conditions, is nothing short of remarkable but proves what can be achieved when a group of ambitious people follow a carefully crafted strategy.

“It’s been a tricky road,” says Tiege.

“We only deal with cash up front before we deliver. We aren’t stuck for cashflow

// WE’VE PUT A LOT OF WORK INTO OUR RECIPE AND OUR CONCRETE IS PHENOMENAL //

and we don’t offer out credit and ending up relying on someone else’s payments.”

The ongoing success of the brand and the obvious quality of products has led to the Dorning Group becoming a key supplier to many major wholesalers.

“Buildit, Cashbuild, Massmart, Builders are all key clients, and we work closely with the municipalities around us, providing asphalt for the roads. We use our own raw product to supply these municipalities and so we like to supply those close to us,” details Tiege.

It’s clear that, by following a sound and proven strategy, always investing in quality products that deliver for the customers, and building a culture of excellence throughout the business, the Dorning Group is managing to avoid negativity and is building a robust base for future growth.

“We are very fortunate and we have had a phenomenal run so far. We can only hope, and keep our heads down and keep going.

“In our area, we do have a say and we do have market share. We are positive about our reputation and we are always looking to grow it.

“We’ve always laughed and joked about one day getting big and being recognised nationally on the stock exchange but those are big dreams for the long-term,” laughs Tiege.

In 1991, Ivan and Shanelle Dorning probably joked about one day having hundreds of employees, multiple sites, and nationally recognised clients and, after decades of hard work, that dream is now the reality. The only way is up for this exciting business and who would bet against Tiege’s long-term vision being achieved considering what has already been realised?

WWW.DORNINGGROUP.CO.ZA

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LEGARO PROPERTY DEVELOPMENT

Johannesburg’s New Shining Light in Property PRODUCTION: David Napier

Hyde Park in Johannesburg is home to Africa’s first six-star green rated building courtesy of Legaro Property Development, a young and exciting female-managed business looking to change the face of the upmarket development industry.

Managing Director Michele Brookes talks to Enterprise Africa about her desire to create, and her aspiration to leave a lasting family legacy in her hometown.

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INDUSTRY FOCUS: CONSTRUCTION

//

In the mid-90s, a South African property business was starting out as a micro operation in a garage in Johannesburg. The family business grew and attracted interest from some of the big names in South Africa’s property development and construction spaces. A careful but ambitious approach saw the company go on to become a JSE-listed, national home builder – one of the biggest and the best. But along the way, the family feel was lost. The business became corporate and, while it operates today as a shining example, the founders wanted to rebuild something with a more personal feel, that had opportunities for future generations to grow into.

So, in 2017, Michele Brookes, wife of Balwin Properties CEO Stephen Brookes, established Legaro Property Development, a female owned and managed property business, with a focus on the top end of the market, in some of the country’s wealthiest suburbs.

Initially, the idea was to build a new company that differentiated itself from other developers by targeting

// WE ARE ALWAYS TRYING TO TAKE THINGS TO THE NEXT LEVEL AND THIS WILL BE THE SAME IN ALL OF OUR FUTURE DEVELOPMENTS. WE WANT TO INTRODUCE SUSTAINABLE LIVING AND SOLAR; USING THE EARTH AS A MEANS RATHER THAN DESTROYING THE ENVIRONMENT // 48 / www.enterprise-africa.net

specific groups of the economy’s top end, while growing a business that the family could leave its mark on.

“My husband is one of South Africa’s big property developers in the mid-range market. He listed his company on the JSE and that saw the loss of the family feel within the business. We have children and we wanted the children to become part of the business but that is not possible with a listed company,” Managing Director, Michele Brookes, tells Enterprise Africa.

After launching the business, the first task was to create a home. Brookes had the idea of creating a head office that was environmentally friendly, but also had class, elegance and quality. This was the start of a fantastic relationship with SA-based Italian-bred Daffonchio Architects. Legaro’s head office at 78 Corlett Drive, just north of Johannesburg’s CBD, went on to claim the first six-star green rating for a building in SA, awarded by the Green Building Council of South Africa.

The building boasts a carbon neutral design. The majority of waste from demolition and construction was recycled, the building can operate off the grid, it is water efficient, all lighting only reaches a certain energy consumption level, there are charging points for electric vehicles – even interior elements such as paint, adhesives and carpets had to meet strict guidelines. The outcome is a major success and a flagship for Legaro.

“We won the first six-star green rated commercial building in southern Africa and the SAPOA award for green building. We are always trying to take things to the next level and this will be the same in all of our future developments. We want to introduce sustainable living and solar; using the earth as a means rather than destroying the environment,” says Brookes.

“We are a green company and we are going for top ratings. We are very proud of our awards. We actually beat the Discovery Building in Sandton by

// BEING A WOMAN IN THE CONSTRUCTION INDUSTRY IS NOT EASY BUT I AM TRYING, ALONGSIDE OUR PROJECT DIRECTOR, TO TAKE THINGS TO THE NEXT LEVEL // two points – that is a massive building and we are this tiny new company so I must say I was surprised but proud.

“We are now looking to build another commercial building, right next to our head office, with all the same principals but we want to make this a live building. That means that all materials are recycled and all the plants are living and cleaning the oxygen in the air. We are going in-depth with the green lifestyle as I think it is needed. It goes back to us being light – we want to create something that’s new and give a fresh look to everything.”

Recognition of Legaro’s success has been international and a visit from global TV brand, The Discovery Channel, has confirmed the building’s status as iconic. The recording about 78 Corlett – where Legaro is the lead tenant alongside more fantastic lettable space – will air locally later this year.

UPMARKET Legaro’s first project after its green building HQ success was a residential development in Johannesburg’s Hyde Park – Melville Lane. Situated perfectly between Sandton and Rosebank, this bold idea brings peace and serenity to an otherwise busy neighbourhood.

Daffonchio Architects went for a blend of London townhouse with Cape Winelands country feeling. The development was tailored specifically towards a niche local market, and Brookes has gone on to target various

LEGARO PROPERTY DEVELOPMENT

iterations of the same sector with other developments.

“Our first development, Melville Lane, sold very well and we have had real demand – we’ve hit Hype Park with a bang,” enthuses Brookes.

“We have just launched a new development in Morson Road, Hyde Park. This is one of the more affluent areas of Johannesburg and homes are valued between R7 million and R30 million. I decided to target the downscaling market from this area – that’s people who have these mansions but where children have moved out of home and they don’t need the space anymore.

“You can downscale from a large house into a luxurious home, without losing any of the feeling. We launched in August and we sold nine of 12. In the South African economy, which

remains unstable, it shows we have hit the right market.”

Sticking to the same principles, just around the block, next to Hyde Park Corner, Legaro is working on the Emerald – an apartment development designed with another very specific market in mind.

“Alongside Morson Road, we are building another project called the Emerald. For this, we have targeted the children of elite property owners.

Instead of them moving out of the suburb they know and starting up somewhere else, we have created this place where they can live and work, feeling like they are still part of the community they have grown up in.

“It’s 292 apartments ranging from one bedroom to three bed and the building has all underground parking.

When you look at the development,

you don’t see cars or anything obstructive to the nature in the area.

We have also created a lifestyle centre which accommodates people going to the gym. We are putting in a full Technogym, a 25m indoor heated pool, an outdoor pool, yoga studios, cold baths, and a 24-hour concierge – for the growth of online shopping and deliveries,” Brookes explains.

These developments, all extremely impressive projects in their own right, are a demonstration of what Legaro is capable of, and, after a lifetime in the industry, Michele Brookes is keen to roll out across South Africa.

GOING NATIONAL A project in the pipeline for the company is away from its natural home and the busy surroundings of Hyde Park, in Paarl in the Western

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INDUSTRY FOCUS: CONSTRUCTION

Cape. Greener, leafier and more rural, the location sits amongst some of the country’s prime real estate and Brookes will bring the same luxury that has been delivered in Johannesburg, focussing on the same top end of the market.

“It’s in the pipeline at present and we are busy with council approvals and other issues that are standard for the industry before we can even think about laying the first brick,” she states. “The project is set for Paarl and is situated close to an elite polo institution and lifestyle centre, Val de Vie. Our product is of that calibre and we are absolutely targeting the top end of the market.

“We are still playing with the model but it will be around 220 homes. We are also going to create orchards so people can live off the food that grows. The farmers in the area will take care of the orchards and take the fruit to market to sell.”

Expanding out of an area that Brookes knows, and an area where the company has seen significant success in its relatively short life, will be a difficult move. Fortunately, life in the property and construction industry is not new for her and few things can surprise this industry veteran. “While my husband is not involved in the day-to-day operations of the company at all, I am fortunate that I can bounce

// I HAVE TAKEN THE MODEL TO THE NEXT LEVEL BY OFFERING THAT UNIQUENESS AND THAT BESPOKE DETAIL THAT YOU CANNOT GET ELSEWHERE RIGHT NOW // 50 / www.enterprise-africa.net

ideas off him, and I have grown up in property development for the past 18 years where I have eaten, drunk and slept property.

“I have taken the model to the next level by offering that uniqueness and that bespoke detail that you cannot get elsewhere right now.”

In the longer term, Legaro is looking to KZN and Durban, targeting presence in the country’s three major provinces. Again, the same model would be rolled out if any plan there comes to fruition. “I believe in sticking to a level, I do not believe in going for the cheapest,” says Brookes.

“We want to go national. Next year, Cape Town will be our first move out of Johannesburg. We are also looking at a site in the Ballito area of Durban. There is a beautiful colonial building that is going up for sale and we are considering buying and renovating, bringing in a new lifestyle for that area.”

LEGARO PROPERTY DEVELOPMENT

LASTING LEGACY The name Legaro will be entrenched in the history of Johannesburg thanks to the six-star building that the company has masterminded. But Brookes is keen for her business to leave a lasting legacy, beyond just bricks and mortar.

The very essence of the business has always been about family, and that is heritage that the company will leave.

“We have travelled extensively, and we are fortunate enough to see some of the finer things in life, so I suggested that we create a more upmarket development business.

We employed my brother-in-law as Technical Director, as he is fantastic at what he does, and I started as Managing Director with the idea that my step son would take over when he is ready. I would then follow the part I love and enjoy, which is on the

creative side, and my daughter could come in as Marketing Director. We wanted to get back to being a family business with a truly special product.

Ever since our establishment, we have grown significantly,” she explains.

“This is a family business and I do want it to go from generation to generation as there is a passion for it. The children have grown up surrounded by the industry, they know property, and they fully understand the business.”

Although the transition from one generation to another is still a way off yet, when it does eventually happen, the market is sure to receive the same levels of quality that the company has become renowned for. Standards slipping is simply not an option for Brookes.

“We are going to be growing but we are going to keep our product at

the same standard. I will never drop the standard of anything, every toilet will always be of the highest quality.

Whether it’s 292 apartments or five homes, quality will never drop,” she says.

The name ‘Legaro’ comes from Brookes’ own desire to bring a new light to the property development space.

Leggero translates from Italian to mean light, and that is very much the image she wants to project – a company which is shedding new light in the industry, and also acting in a light way, not heavy on its feet – quick and nimble in changing market conditions.

Ultimately, it is market response that determines your success in the property industry, and Legaro’s feedback has been fantastic. “We try hard and we are competitive. We have taken market share from others in our area and if people want to downsize

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INDUSTRY FOCUS: CONSTRUCTION

from a R30 million house into a R9 million home, they are now coming to us before other developers.”

ALL-ENCOMPASING Legaro has further strength, beyond what you might expect from a company of its age, in the fact that it provides an all-encompassing service, end-to-end, and this is how standards remain so high.

From architect to plumber to labourer, the company has built fantastic relationships and a value chain based on trust and quality. So many businesses claim this, but very few make it a reality.

“In the building industry, if you can gain respect from the men and women on the ground, then you can definitely take your business forward,” says Brookes.

“We have lots to learn but mixing with the right team gives us the

52 / www.enterprise-africa.net

advantage. Everyone from our town planners to architects to the interior designer to the project director; we have all played a big role getting the company to where it is.

“Keeping it all inhouse allows us to be hands on with our projects as opposed to leaving it to tender. We like to make sure things work. When we outsource, we deal with individuals. If someone says they will work with us, that means they will work with us, not their site people or staff. This ensures the highest quality and ensures quality and environmental friendliness for our customers,” she adds.

The model that Brookes and team have developed will remain the same, whatever the size of the project.

Because quality is paramount, and so far quality has been delivered, right now there is no reason to change.

This model has brought success and positioned Legaro, in just two short

years, as an industry frontrunner.

“I would like to say we are because of the nature of the awards that we have collected for our green building,” admits Brookes. “I like to think we are considered in line with

// I LIKE TO THINK WE ARE CONSIDERED IN LINE WITH THE TOP BUSINESSES AND TOP PEOPLE. WE ARE CERTAINLY KEEPING WITH TRENDS AND ALWAYS TRYING TO FIGURE OUT WHAT THE CONSUMER NEEDS AND WANTS //

LEGARO PROPERTY DEVELOPMENT

Morsim Road, Hyde Park

Morsim Road, Hyde Park

the top businesses and top people.

We are certainly keeping with trends and always trying to figure out what the consumer needs and wants, and trying to help them by offering affordable pricing.”

This is a company bucking the trend in an industry which is fraught with challenges. The building and construction industry has been in decline for the past decade, the economic climate in South Africa has halted major investment, and the financial institutions have been looking closer than ever at their lending. But for companies like Legaro, companies with a real strategy and a product that stands out, there is always a market to work with.

“We are always on the lookout for opportunities. People will continue to buy homes,” says Brookes. “We have three other projects that we are working on in the Hyde Park node.

We are busy with plans and approvals, some are 150 units and some are 10 units, so we are busy. We have three commercial and one residential project in the pipeline.”

The Managing Director understands that the growth of the business will be good for the wider economy and, after meeting with President Ramaphosa, Brookes – a proud South African – is confident about the future, both for business and for the country.

“We understand that you have to hit the bottom to get to the top again,” she says of the economy as it sits now. “I met with Cyril Ramaphosa recently and he told me one of the biggest problems we have as a country is infrastructure. He said he needs developers to help the municipalities.

He is bringing in the private sector to help the government, but he is aware it will take time.”

Despite the economic conditions in the country, one thing is now clear: If you are an investor, homeowner, first time buyer, or business looking for upmarket contemporary workspace, Legaro has the bespoke solution for you, completed with green design in mind, and finished to highest international standards. Already the envy of many developers in South Africa and around the world, Legaro – a shining light in African development – has achieved so much and is only at the start of its journey.

“We feel blessed. Being a woman in the construction industry is not easy but I am trying, alongside our Project Director, to take things to the next level.

I am very proud,” Brookes concludes.

WWW.LEGARO.CO.ZA

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MOMSEN BIKES

The Epic Mountaineer PRODUCTION: Colin Chinery

In 10 years, Victor Momsen has developed Momsen Bikes as a unique brand in the tough competitive world of mountain biking. “Our unique understanding of endurance mountain biking sets us apart,� says the Port Elizabeth businessman and MTB enthusiast.

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INDUSTRY FOCUS: SPORTS & LEISURE

//

With its diverse, rigorous terrain and benign weather, South Africa was always going to be a natural for mountain biking (MTB), the adrenaline-pumping pursuit that has exploded from marginal adventure activity into a national mainstream sport.

And since its inception in 2009, Momsen Bikes based in the Baakens Valley in Port Elizabeth has been creating bikes developed for the challenging South African terrain.

Designed and created by its inhouse R&D team, and tried and tested in the most extreme off-road conditions, Momsen Bikes are, as the company slogan says; ‘Forged in the Untamed.’

“It’s our lifestyle – not our job. We live, eat, sleep and breathe bicycles.”

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MOMSEN FOR EVERYONE Designed for the mountain biking trails of South Africa, Momsen has created bikes suitable for everyone from the beginner and casual enthusiast to high-profile professional cyclists competing on the national mountain bike scene.

Key features developed and designed around South Africa’s appetite for world leading MTB Stage Races include dual water bottle mounts, and I.T.B (Integrated Toptube Box) fixtures, allowing essential, easyto-reach, on-bike access to endurance event essentials. Each bike is designed and specced with components suited to the local market.

“This unique understanding of endurance mountain biking sets

us apart and inspires confidence in Momsen Bikes,” says Victor Momsen.

As a self-confessed bike geek, accomplished in provincial cross country and downhill racing, Momsen had always dreamt of starting his own bicycle brand.

Dream became reality in 2007 when he founded Two Wheels Trading, and two years later the Momsen Bikes brand now competing with international giants such as US-based brands including Specialized and Trek.

The pre-birth beginnings however – though never the passion - were more modest.

“I was working in a small surf and windsurfing shop in Port Elizabeth called Beachbreak. Windsurfing in the 80s was massive, but then had

MOMSEN BIKES

a slow decline in popularity, almost disappeared as a cool sport, and the surf shop ended up getting into mountain biking.

“So, I ended up as a school kid BMXer, working on a casual basis at the weekends, very involved with the guys running the shop and local MTB events.

PASSION AND PLAN “And that’s where the first passion comes from. I just knew as a teenager that long-term I wanted to end up working and being involved with bikes for a living.”

It was while he was studying mechanical engineering at the Nelson Mandela Metropolitan University in Port Elizabeth, that the Surf Shop

began importing Wheeler mountain bikes from Taiwan.

Taiwan is the world leader in the bicycle industry on the strength of its high-quality bikes and components employing the latest advances in such fields as electric, green and smart technologies.

“Wheeler was one of the most progressive of the cool Taiwan-based brands, and I ended up as a 19-yearold working for them at their factory in Taiwan.

“To be honest, I didn’t know where Taiwan was on the map. I just knew it was the real heart of the global cycling business, and if I wanted to have a run at this bicycle career I needed to go to Taiwan.”

He was to remain there for three years, undergoing in-service training for a diploma in mechanical engineering, and working for the Taiwanese manufacturer selling predominantly into the European market.

“As a manufacturer being based in Taiwan, they needed someone who could assist with market trends.

They were aware of consumer needs, what the consumer wanted, and what was cool. They had the know-how to make anything but were looking for validation on which projects and products to focus.

“I stayed in touch, finished my studies and they offered me a full-time job. I went back - this was 1998/99 and after living in Taiwan for nearly

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INDUSTRY FOCUS: SPORTS & LEISURE

// I FOUND THE MAJORITY OF THESE BIKES WERE MERE TOYS AND NOT REALLY RIDER FRIENDLY. SO I DEVELOPED A GOOD-QUALITY BALANCE BIKE THAT ALLOWS CHILDREN TO PROGRESS TO A REAL BIKE WITH OR WITHOUT SIDEWHEELS MUCH QUICKER THAN IF THEY USED TOY TRICYCLES //

Victor Momsen - CEO Momsen Bikes

58 / www.enterprise-africa.net

three years, I felt I needed a change.”

Returning to the Eastern Cape, he joined a local bicycle importer, Probike, as Product Manager and later Product Director, helping to revive and develop what had become the somewhat tarnished Raleigh brand.

“For seven years I was responsible for all the design, development and spec-ing of their complete bike line.

I’ve probably been to the East almost 100 times, building on contacts and relationships with key suppliers.

WHY NOT ME? “After a while I made the decision to start my own wholesale company. I was doing a lot and working hard, so I thought, why not do it for myself? I started Two Wheels Trading in 2007 and was able to secure a few good brands to distribute in the South African market.”

Launched two years later around the time 29-inch wheels were becoming must-haves, the Momsen brand debut was perfectly pitched.

“Only a couple of 29er brands were available and all were from overseas. Most people were sceptical or sitting on the fence waiting to see if the 29ers would take off.

“We embraced the change and developed a 29er frame kit. This allowed mountain bikers to upgrade without it costing an arm and a leg, as they were able to re-use 80% of the parts on their old bikes.”

In 2013, Momsen launched the Muna kids’ brand, after his children, Mia and Ethan made him aware of a gap in the market for quality, affordable children’s bikes.

“I found the majority of these bikes were mere toys and not really rider friendly. So I developed a good-quality balance bike that allows children to progress to a real bike with or without side-wheels much quicker than if they used toy tricycles.”

Muna also developed ordinary pedal bikes aimed at children aged four to around 10, with a range of

MOMSEN BIKES

// THERE ARE SO MANY SOUTH AFRICANS WHO ARE PATRIOTIC THAT THEY WOULD MUCH RATHER SPEND THEIR RANDS ON A PRODUCT AND A BRAND BASED IN SOUTH AFRICA //

juvenile models in the Momsen range, displaying the company’s ability to cater for the very high-end juvenile market.

“We invest a lot into these bikes, because we believe we are raising a future generation of Momsen riders.

That is why our JSL range of kids’ bikes receives a lot of high-end, lightweight components.”

SA ROOTS “While we’re infinitely proud of our South African roots, we haven’t just stuck to SA, with riders competing on Momsen Bikes while racing in events

worldwide from the Cape Epic to the UCI XCO World Cups.”

Building a South African bike brand in South Africa however, has its unique challenges, says Momsen.

“There’s a percentage of people who will never, ever buy one. It’s part of South African culture in a way; they aspire to own an American or European brand.

“On the flip side, there are so many South Africans who are patriotic that they would much rather spend their Rands on a product and a brand based in South Africa.

“This is one of the reasons why

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INDUSTRY FOCUS: SPORTS & LEISURE

// I JUST KNEW AS A TEENAGER THAT LONG-TERM I WANTED TO END UP WORKING AND BEING INVOLVED WITH BIKES FOR A LIVING //

“In some ways it might be said to be easier, but establishing credibility is harder because with the internet there are so many start-ups. People I was speaking to 10 years ago are no longer in business, they’ve simply vanished off the map.

“I would say it takes 10 years to really become a businessperson, the entrepreneurial bit at the beginning is the fun part, then it gets real!”

Momsen Bikes exists. We are a proudly South African brand that has always designed, specced, and built for the South African market - not a product that could be for everywhere and just happens to be sold in South Africa.”

As an outstanding cycle industry entrepreneur, Momsen says early momentum for success is increasingly challenging.

RESPONDING TO A CHANGING MARKET 10 years on from the Momsen Bikes launch, and responding to modern trends in a rapidly changing market, Momsen is developing a focus on digital and online selling, down-scaling office space, reverting to a warehouse operation in Port Elizabeth, and working closely with retailers while

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making these transitions. The rise of the internet means the company has to be proactive on all fronts.

And the one-time teenager who hopped from home-town Port Elizabeth to far-away Taiwan to pursue a dream, has recently moved again, this time to Perth in Western Australia, from where he is running the brand while keeping a keen eye on a new market.

“I’m basing myself now in in Perth, the family is relocated here, and I commute between South Africa and Australia.

“Multinationals have been doing it for decades of course, but technology now means smaller companies like mine can also do it.

“It doesn’t come without its challenges, but I think 10 years ago it was a lot harder than what it is now.”

One Taiwanese cycle boom that

MOMSEN BIKES

// I JUST KNEW IT WAS THE REAL HEART OF THE GLOBAL CYCLING BUSINESS, AND IF I WANTED TO HAVE A RUN AT THIS BICYCLE CAREER I NEEDED TO GO TO TAIWAN // Momsen is sceptical of is e-bikes.

Now a $77m industry, there’s no sign of a slowdown, with sales last year even surpassing traditional bike sales in the Netherlands.

“Unlike Europe and Australia, there is no market in South Africa for ‘general

use’ e-bikes. The market is extremely high-end and very competitive. In South Africa you do not use an e-bike to shop and buy bread or milk as you do in Europe.”

MOMSEN – A UNIQUE STORY In this tenth anniversary year, Momsen affirms the brand’s ‘Proudly South African’ high-spec credentials.

“Our bikes have a unique story, and this actually makes it hard for me to think global because we have to stick to our roots.

“The focus right now is some strengthening of relationships with our dealers and looking after the South African business, with the international expansion of Momsen Bikes as a brand very much on the back burner.”

Has Momsen the capability of remaining up to date in an extremely fast-moving competitive industry?

“I do, because the bike industry has some unique features.

“So long as there are bicycle enthusiasts in the world, there’s going to be an opportunity for passionate businessmen/cyclists to make a living. And the big brands struggle to compete with passion.”

WWW.MOMSENBIKES.COM

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BARNYARD THEATRE

From Footlights in a Farm to

Bright Lights Across SA PRODUCTION: Timothy Reeder

Live music in South Africa is famously vibrant and varied, with many venues able to survive and thrive. The power of corporate and fundraising events, meanwhile, has never been stronger and more corporates than ever are investing in event and experiential marketing.

At its six theatres across South Africa Barnyard is taking care of the full gamut of live events, growing into the preferred venue for numerous well-known companies and artists.

//

The Barnyard Theatre empire has grown to number six outposts across South Africa: four in Gauteng, one in Cape Town and one in Durban. The full list throws up some of the most famous venues in the country, and will be familiar to both show lovers and major corporations alike; among them are Emperors Palace in East Rand, Rivonia Barnyard in Sunninghill, West Rand’s Silverstar and Menlyn Barnyard in Pretoria.

“From its humble beginnings on a dairy farm in Plettenberg Bay to international hit shows, the Barnyard Theatre is a home-grown legend in the making.” In 1996 the first Barnyard Theatre was opened by the Möller family on a dairy farm in the Western Cape. Louis and Sybel had both been involved in the performing arts most of their lives, and the launch solved the conundrum of combining their dual loves of the footlights and the farm.

It was a truly ground-breaking concept, and it has clearly worked, as

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the Barnyard Theatre now edges toward its quarter-century of success under the bright lights.

GROWING PRESENCE Barnyard’s stock is constantly growing, as word spreads of the sensational experiences on offer on such a wide variety of shows. It has been bolstered twice on recent years, and just last month we were greeted with the opening of its new arts destination, the Tyger Valley Barnyard Theatre in Bellville.

The lavish opening followed last year’s return to Durban and launch of another new Barnyard venue, this time at Suncoast Casino Hotels and Entertainment. Its opening in December made it the third Barnyard venue to partner with a Tsogo Sun Entertainment destination, and the leading hospitality group’s heritage of 50 years of excellence in variety, quality and trusted service makes it the ideal associate for Barnyard.

Durbanites report an excellent

show experience and the same wooden interior and casual seating-style that creates the distinct ambiance unique to the Barnyard Theatre, amplified further by its in-house catering division with pizzas, snack baskets and more available to patrons attending shows.

The addition of the Barnyard Theatre to Suncoast forms part of the extensive refurbishments that have been underway over the last year. “Live shows six days a week at the Barnyard Theatre will add a whole new dimension to our already extensive offerings, and promoting

// THE BARNYARD THEATRE PROVIDES AN OLD-WORLD, INFORMAL, YET SOPHISTICATED ENVIRONMENT //

INDUSTRY FOCUS: HOSPITALITY

local talent fits in well with our existing philosophy,” commented Louise Howell, Suncoast marketing manager.

At Bandini Cheese we have an unwavering motto, that is to give customers what they desire, at an affordable price.

Customers' requirements have always been paramount in our approach. This has resulted in an offering of excellent quality with service to match and a product range which makes Bandini Cheese a one-stop shop.

Our basket caters for restaurants and pizzerias in particular.

Please give us a call on

011 433 2355 or email

sales@bandini.co.za to receive a personalised quotation.

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VARIETY: THE SPICE OF LIFE “The Barnyard Theatre provides an old-world, informal, yet sophisticated environment. Each venue is slightly different however the general layouts, look and feel of the theatre interior are all similar and resemble the original concept.” The variety and flexibility of personality found in a Barnyard venue matches the range of experiences it houses; it is just as fitting a spot for a corporate event as it is for an evening of live music or comedy.

Much has been written and spoken of the transformational power of business events and brand experiences: there is nothing quite so important in building a relationship or presence as meeting a company in person, and the meetings and events industry has a powerful impact on the South African economy.

“Live brand experiences are proving their ability to engage audiences effectively in an increasingly noisy world filled with so much digital marketing,” says Jeff Stelmach, president of Mosaic, and Barnyard caters for everything a business could need when it comes to presentations, award ceremonies, product launches and many in between.

The Barnyard Theatre also offers

// FROM ITS HUMBLE BEGINNINGS ON A DAIRY FARM IN PLETTENBERG BAY TO INTERNATIONAL HIT SHOWS, THE BARNYARD THEATRE IS A HOME-GROWN LEGEND IN THE MAKING //

BARNYARD THEATRE

(C) Werner Vermaak

// BARNYARD’S UNIQUE CONCEPT; SOCIABILITY, VALUE-FOR-MONEY AND A ONE-STOP EVENING OUT MAKE OUR THEATRES UNRIVALLED // fundraising opportunities as part of a staunch social responsibility to the surrounding community, seeing it offer companies and NPOs a reduced ticket rate to enable them to re-sell at a profit.

“Barnyard’s live music shows transcend boundaries,” says the group of its other hosting forte. “They are vibrant, uplifting, highly entertaining, and feature the greatest hits of our time. In addition, we regularly host well-known South African bands, comedians and performers.” It is the complete evening in one place, with patrons encouraged

to arrive early and socialise and enjoy a meal before curtain-up. “Barnyard’s unique concept; sociability, value-formoney and a one-stop evening out make our theatres unrivalled.”

What also sets Barnyard apart is a fierce commitment to providing a platform for local and emerging artists, as hinted in its live music brief.

“One of the most important factors for developing young talent in Africa is the live music scene,” writes Joe Chialo, senior vice president of A&R Universal Music Central Europe & Africa for IQ magazine.

“Especially at the start of their career, artists have to be able to try things out and play in front of audiences so that they can grow creatively.

Unfortunately, the infrastructure needed for this, like venues and a solid network of promoters, can’t always keep up with the speed at which the industry is developing.”

The Barnyard Theatre is setting out to rectify this, recognising local talent and offering the opportunity to earn a living in the creative space. “The

Barnyard Theatre Production Company owns and produces all the shows and employs all musicians and performers,” it concludes. “The company has produced over 110 shows in 16 years, including Under African Skies which has performed at over 80 theatres in Belgium, Holland, France and Denmark ,where it received rave reviews and achieved excellent ticket sales.

“Barnyard shows have also been staged internationally in the Middle and Far East, including multiple sell-out shows at The First Group Theatre at the five-star Madinat Jumeirah resort in Dubai. Our productions have also been seen in one of the entertainment hubs of South Africa, the renowned Sun City.”

As the Barnyard footprint continues to expand, it is humbling to see it use its reach increasingly to further the careers of the next South African stars of the stage.

WWW.BARNYARDTHEATRE.CO.ZA

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SINGITA

‘Place of Miracles’

Holds A Vision for Conservation Expansion PRODUCTION: David Napier & Singita

The Singita conservation and eco-tourism brand is continuing to expand its presence in Africa after opening in Rwanda. With a 100-year purpose to preserve and protect African wilderness for future generations, this is a business that is looking beyond profit, and is building a sustainable operation that benefits wildlife, local communities, African tourism, and the environment.

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Singita Malilangwe House - Breakfast with a view

INDUSTRY FOCUS: HOSPITALITY

//

Away from the traditional centres of commerce in southern Africa - in areas of pristine, beautiful, lush but wild African landscape – there is a business that is forging a growth story built on a 26-year dedication to conservation. Singita, the Shangaan word for ‘Place of Miracles’, is a conservation and eco-tourism brand that delivers luxury safari hospitality at 15 lavish, award-winning lodges and camps. While many businesses endure an endless pursuit for profit, profit, profit, Singita is carefully growing with an altogether more important vision in mind. The company is steadfast in its desire to achieve a 100-year purpose - to preserve and protect large areas of African wilderness for future generations.

Singita opened its first lodge in 1993 in South Africa, when Founder and Executive Chairman, Luke Bailes, saw an opportunity to utilise eco-tourism as a driver for his ambitious conservation agenda. He opened Singita Ebony Lodge in the Sabi Sand Game Reserve on the fringes of the Kruger National

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Park. Soon after came Boulders Lodge, adjacent to Ebony. Castleton followed, a luxury villa in what was the family homestead on the land that had been in Bailes family since 1925.

“People feel privileged to stay in unpopulated, untouched wilderness areas and they choose to stay with us because our lodges have a reputation for being rare and authentic, while embodying a philosophy of sensitivity,” states Bailes. “There’s an authenticity of place at each of our lodges that is not only a rarity but touches guests on every level – spiritual, emotional and physical.”

Already active in South Africa, Zimbabwe and Tanzania, Singita recently expanded its footprint into Rwanda, replicating its successful model and ensuring that important wilderness will get the attention it needs from a conservation perspective.

Two lodges, Singita Kwitonda and Kataza House opened on August 1 and both are set within a 72-hectare site on the edge of Volcanoes National Park. This magical setting is home to

a growing population of endangered Mountain Gorillas.

Singita has been quick, instilling its mantra of conservation and ecotourism, committing to extensive reforestation initiative almost two years before opening in Rwanda, helping to increase the range and numbers of gorilla – a species classed as ‘critically endangered’ until 2018 when it was reclassified as ‘endangered’ following an increase in numbers.

LAND OF A THOUSAND HILLS For Lindy Rousseau, Singita’s Chief Marketing Officer, expansion into Rwanda fits perfectly into Singita’s 100year purpose.

“It’s been an incredible success for so many reasons,” she tells Enterprise Africa. “The government in Rwanda has displayed such a shining example of how tourism can change a country’s fortune - they have a very similar ethos to tourism as Singita. It’s about high value tourism coming into the country, welcoming less tourists at a higher rate, in order to continue all the

SINGITA

conservation work. The gorilla success story is incredible – not long ago, they were on the critically endangered list and, for the first time ever, they have been downgraded to ‘endangered’. They are one of the only species to achieve this - although they are still endangered so it’s not a great story. Mountain gorilla numbers in the entire region had fallen as low as 242 in 1981 now, they number more than 1000.”

Singita offers gorilla treks, in partnership with local conservation organisations, and places a large emphasis on the promotion and reestablishment of gorilla habitat. Treks start at around $1500 per person.

“There is a real conservation reason for Singita to be in Rwanda. Singita acquired 178 acres of land around the lodge, increasing the buffer zone into the national park. Increasing the buffer zone ultimately increases the habitat for the gorillas.”

The lodges in Rwanda represent signature Singita flair – beautiful, comfortable, and sensitive to the land on which they stand. Built with

sustainability in mind, using local ecofriendly materials and methods, these lodges epitomise luxury eco-tourism.

Singita ensured the entire construction process benefitted the local community – almost 500 local artisans were employed on site, including many women. Local architects and artisans were called upon to bring the project to life, and Singita managed to reach the highest international standards while maintaining a very local flavour.

GAPP Architects, alongside Cecile and Boyd and HK Studio, were involved in building the two lodges in Rwanda.

These two companies also collaborated on Hillside Suite in Tanzania, as well as Malilangwe House in Zimbabwe this year. They work alongside a group of other architects and designers and Singita’s own internal design team.

Singita’s Creative Director crafts the entire guest experience which is constantly evolving – the touch points at the lodge, the linen drinks, or mini bar, what gets served, how and where it’s and more. “The team is always crafting the Singita experience and

moving it forward. It can’t just stay the same, we have many repeat guests and trends are constantly changing.”

THE SINGITA EXPERIENCE Staying with Singita is a refined experience. It’s not like staying in a top African hotel or a fancy city hotel, and this is why the business has managed to thrive. The brand has been carefully crafted, over many years, to be intuitive to its guests needs and is now recognised as a real industry leader in hospitality.

“It sits in a class of its own because of the premium rates and products,” Rousseau details. “and because of its quality and conservation purpose.”

Typically, the Singita customer base consists of wealthy international tourists, hailing from markets such as the UK, USA, Germany, France, Australia, South America and more. This type of discerning traveller can choose from a range of global destinations and so, in order to stay in line with international trends, the lodges receive regular investment.

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INDUSTRY FOCUS: HOSPITALITY

// WHAT BEGAN AS A BOUTIQUE SAFARI LODGE BUILT ON FAMILY-OWNED LAND IN SOUTH AFRICA’S SABI SAND GAME RESERVE 26 YEARS AGO, HAS BECOME A GAME-CHANGING COLLECTION OF ENVIRONMENTALLY SENSITIVE PROPERTIES THAT REDEFINES THE LUXURY SAFARI EXPERIENCE //

Singita Volcanoes National Park Dining

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The product in South Africa is at a very high level. Every year or every second year there is a redesign or refresh. In South Africa, the lodges have been through a series of improvements and they are now looking to the future.

“Singita has a very well-rounded wellness offering but it’s not something you can put your finger on – it’s more than a spa treatment in a room or some aromatherapy. It’s very deep and far-reaching and considers physical and mental well-being, connecting with nature – leaving devices behind and being alone with friends and family at sunset. All of these things and more can contribute to your sense of wellness.

In the New Year, we are building a new massage space with a workout area in the Sabi Sand. We are also looking at a tented experience in South Africa 2020/21. We will also continue to invest in our lodges whether its general improvements or specific upgrades,” says Rousseau.

The culture within the business, which is always thinking about its 100-year purpose, helps employees to remain focussed on delivering service of the highest standards and encouraging repeat business. Alongside the magnificent products and iconic safari destinations, intuitive service plays an important role in the Singita experience.

Singita staff work hard and do not rest on their laurels. There is a constant focus on improvement and excellence. To maintain exceptionally high standards is a very difficult thing to do. “The intuitive guest experience is not something you can teach. You need really smart, tunedin people that can deliver a service that is not over the top but is just perfect,” says Rousseau. That’s why guests return and why people recommend the brand. The lodges are spectacularly beautiful and the locations are almost unsurpassed but it has to be about more than that.

The conservation ethos along with iconic locations and transformative wildlife experiences also differentiates.

Another element in the product/ service mix which propels Singita to

SINGITA

the top of its sector is its incredible food and wine offering. Singita’s menus are based around local ingredients and local suppliers to give guests an honest example of the finest local cuisine. Rousseau explains that as well as taste, a strong focus is also placed on ethical sourcing, creating nutritious, healthy plates.

“Sourcing fresh produce from local suppliers and celebrating delicacies and recipes from the area’s rich cultural heritage means that every lodge offers uniquely tailored food experiences.

Developed alongside the awardwinning Cape Town-based chef Liam Tomlin, Singita’s food philosophy is grounded in freedom. Sharing plates – inspired by Tomlin’s contemporary dishes – abound, while signature ‘bardelis’ with mouth-watering treats and snacks enable guests to enjoy small

meals whenever they please.”

The high-quality food is largely vegetarian-based – delicious, wholesome and healthy. It is helping guests to move towards a healthier lifestyle, smaller potions and less red meat. “We hope that people will enjoy the vegetable-based dishes and apply it to their normal daily lifestyle. It’s good for people, better for the environment, and more sustainable. In Rwanda, the menu is almost entirely vegetable based as that is how the local population eats.”

It’s well-known that South Africa remains a powerhouse wine region of the world, and for Singita this provides significant opportunities to further delight guests.

Singita Premier Wine Direct is a dedicated wine division which buys up the best reserves from the finest vineyards to stock its lodge wine cellars.

The company also boasts a maturation facility in Stellenbosch and high-quality wine cellars at each lodge.

At any time, hundreds, sometimes thousands, of bottles of exquisite, rare wine is available for guests to taste.

Complemented by a team of trained sommeliers, Singita guests are certain to receive a suggestion for every taste, even in remote parts of Africa.

These small, elegant details help set Singita apart and positions the brand as one of sophistication with a layered guest experience.

AWARD-WINNING In recognition of the work that is ongoing at Singita, the company has received several prestigious awards in the past 12 months.

In July, Singita received top honours in the 2019 Travel + Leisure

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Singita Kwitonda Lodge Exterior

World’s Best Awards. Singita Sabi Sand was named the number one Safari Lodge in Africa and number three in the Top Hotels in the World, while Singita Grumeti, in Tanzania, was labelled number three in in Africa and number eight in the Top Hotels in the World.

“To have two properties in the top 10 in the world is an incredible feat.

// SOURCING FRESH PRODUCE FROM LOCAL SUPPLIERS AND CELEBRATING DELICACIES AND RECIPES FROM THE AREA’S RICH CULTURAL HERITAGE MEANS THAT EVERY LODGES OFFERS UNIQUELY TAILORED FOOD EXPERIENCES // 72 / www.enterprise-africa.net

I am enormously proud of our entire team! Winning these coveted awards is critically important to our future growth and positioning. Singita’s expansion depends on selecting projects that are as good, or better than, the current offering, where we can safeguard Africa’s most vulnerable species and natural habitats,” says Luke Bailes.

Adding to the company’s glittering run of awards, in September, Singita Sweni Lodge picked up a coveted SKIFT Design Award for Best eco-friendly design. Using solar energy and a host of other innovative initiatives, Sweni Lodge, in the Kruger National Park in South Africa, is described as a soulsoothing sanctuary.

“This was very important as it acknowledges what we do and the enormous strides that have been taken on the ground to ensure we have a light footprint, without destroying land,” says Rousseau. “We have even eliminated 90% of single-use plastics used in the lodges right down to the amenities which now come in bamboo tubes. Tea, coffee, milk and sugar are plastic-free and even the bath salts come loose without plastic. We don’t

offer plastic water bottles at all – guests receive an aluminium water bottle to use throughout their stay to take home, hopefully using it again and again in their normal lives.”

For Singita, doing the right thing is not an option, it is the only way.

Also in September, Singita (via the Lionscape Coalition) collected the Conservation and Sustainability award at the 2019 PURE Life Experiences ceremony in Morocco. Highlighting companies that show respect and responsibility for natural resources and eco-friendly practices, this award was a real coup for a collaborative conservation initiative. In response to the growing threat of extinction and the profound knock-on effect this could have on biodiversity, Singita joined forces with three of Africa’s other leading eco-tourism operators to establish the Lionscape Coalition.

Together with &Beyond, Wilderness Safaris and Conservation Travel Foundation by Ultimate Safaris, as well as Dazzle Africa and Asilia Africa, the companies work to secure a future for big cats and their natural habitats.

The Lionscape Coalition sees these

SINGITA

likeminded ecotourism brands, who each share the bold vision of the Lion Recovery Fund (LRF), to double wild lion numbers by 2050, collaborating on lion conservation programmes across the continent. Putting all commercial considerations aside, this alliance brings to this initiative over 100 years of positive conservation and community impact throughout Africa. ⁠ “There has been an alarming decline of 50% over the past 25 years.

There are now only around 20,000 wild lions left, and their natural habitats are being destroyed thanks to growing human population and illegal poaching, however a turnaround is possible,” says Bailes.

Demonstrating the international appeal of the idea, and the importance of the cause, Disney chose LRF as its philanthropic campaign and donated

millions of Dollars after the launch of the new Lion King movie in July.

Asked if the people on the front line within Singita recognise the importance of their work, and realise that they are responsible for creating an awardwinning business, Rousseau is clear – everyone is on the same page.

“Singita is s a company that doesn’t have to continuously reinforce its goals. All staff work exceptionally hard and we have the privilege of attracting the best people. Staff who work here do it because they believe in what they are doing.”

AFRICA NEEDS MORE TOURISM Even with the ethical, sustainable, and proven business model of Singita, the company cannot escape the threats that emerge from the wider economy.

Recently-released figures from StatsSA

// IT’S ABOUT HIGH VALUE TOURISM COMING INTO THE COUNTRY, WELCOMING LESS TOURISTS AT A HIGHER RATE, IN ORDER TO CONTINUE ALL THE CONSERVATION WORK //

show that South Africa welcomed 9.2% fewer guests in March 2019 compared with the same period in the previous year. Visitors from markets including the UK, France, Germany, the Netherlands and Australia were all down. Industry commentators have suggested that the issue could be caused by improving tourism offerings from other African regions, political instability in South Africa, crime statistics, and the infamous water crisis of 2017/18.

Halting this decline and sending out stories of positivity to the rest of the world is vital and this is recognised by not only those active in tourism but also the SA government and Tourism Minister, Mmamoloko Kubayi-Ngubane who said recently: “President Cyril Ramaphosa has set a target for us to attain 21 million tourist arrivals by 2030, and this can only be achieved if we work together to create conducive and inclusive environments for tourism to thrive.”

At Singita, eco-tourism remains the focus and delivering on the 100-year purpose is what helps to attract vital guest numbers.

“Overall, sub-Saharan Africa only sees 3% of world travellers and that is

Singita Kruger National Park

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not enough. We need to encourage more travellers to visit the continent so that we can expand our impact,” states Rousseau. “Pristine wildlife areas are shrinking as populations impinge on these wildlife areas. Our fear is that these wild areas will slowly disappear and that is why we believe what we are doing is so important.

The more tourism that comes to Africa and supports companies like this, the greater our impact.”

For South Africa, tourism is a fundamental element in economic performance. The World Travel & Tourism Council released a report in April that suggested 1.5 million jobs came from travel and tourism in 2018, contributing 8.6% of all economic activity. All indicators show that ongoing investment and development is critical.

Tourism is the most incredible creator of jobs. In just one hotel, you might only see a few staff on the floor but behind the scenes there could

Singita Sweni Suite - Outdoor Sleeping Waterfall City &Lodge PwC Aerial

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be 200-300 people employed. The possibilities are almost endless, and it also creates supporting industries such as laundries, transport companies and even private charter airlines.

“There are back-of-house staff housekeepers, guards, chefs, gardeners, anti-poaching units, environmental staff – who are out in the field doing jobs that guests will never see such as alien species control and other research. Then there’s all the front-line staff, managers, sommeliers, banakeli (waitrons) - it’s endless. In rural areas, these jobs are sought after and people are supporting families. In Tanzania, a lot of opportunities are not open to women and, in an area like that, it’s incredible to see many women excelling as lodge managers, chefs and even field guides.”

Singita remains confident about the future of tourism for Africa and, despite the worrying reports, the company continues to thrive thanks to a strong spread, and incredible support of the travel trade.

NURTURING LAND SINCE 1925 Before Luke Bailes established the Singita business in 1993, the Sabi Sand farm was owned by his grandfather.

When the Ebony Lodge was opened, the safari industry in South Africa was starting to take off. International tourists were mesmerised by the idea of being in the African wild. Back then, Bailes was dedicated to conservation, and today the company’s values remain intact.

“What began as a boutique safari lodge built on family-owned land in South Africa’s Sabi Sand Game Reserve 26 years ago, has become a gamechanging collection of environmentally sensitive properties that redefines the luxury safari experience. Beyond the breath-taking design and exceptional wildlife encounters, Singita’s lodges and camps are the heartbeat of a farsighted conservation vision driven by a profound love of Africa and a desire to preserve and protect its most vulnerable landscapes for generations to come,” says Bailes.

SINGITA

The historic growth story of the business demonstrates the careful expansion that Singita has adopted over the years, choosing sustainable development over a fast rise and a quick fall.

“Compared to others, Singita has grown slowly. Kruger National Park followed Sabi Sand in in 2003.

In 2006, the business partnered with a philanthropist investor in Tanzania, where Singita manages six-lodges, followed by Zimbabwe in 2007 and it has just launched two lodges in Rwanda - so the growth has been slow and measured.”

Singita is unique as it is still family owned and owner-run. All stakeholders buy into the company’s 100-year purpose, and there is no suggestion of putting the bottom line at the forefront of decision making.

However, like any business, growth remains an important goal for the future and Singita has no intention of letting up on its conservation drive.

The company hopes to double its footprint, where there is a compelling conservation reason to do so, “and only if it is better than the current Singita product,” says Rousseau. According to Luke Bailes, it’s a disciplined approach, ensuring that Singita’s reputation is continually elevated and continues to deliver the best possible guest experience, while still benefiting the land and communities in which it is privileged to operate.

LASTING LEGACY The future is just as important as the past at Singita, and while the company can look back over a highly successful 26 years, the need to expand the conservation schedule continues.

“Every day, it’s sad to read about wildlife crime and illegal trafficking in a world where humans are destroying natural habitats and species, so it is crucial to help protect landscapes and wildlife populations,” says Bailes.

As Singita strives to honour its 100-year purpose – the guiding light for

every key decision – it has become clear that strategic partnerships with guests and partners is essential in bringing the brand’s conservation vision to life.

The best way for Singita to leverage its future growth and therefore its impact on wildlife conservation across the continent is to work alongside nonprofit funds and trusts in each region, ensuring the fiscal independence of each entity.

Managed and functioning independently from Singita, these funds and trusts employ some of the best conservation experts on the continent, driving forward strategic and critical conservation initiatives that fulfil Singita’s commitment to biodiversity, sustainability and community partnerships. The lodges, designed as they are to offer an amazing wilderness experience in an atmosphere of extraordinary comfort and style, draw guests from around the world who are seeking a more profound connection with nature Singita’s goal is to be a sustainable business – and that’s not just conservation. “When we talk about conservation, it refers to the interdependent relationship between three elements: Biodiversity including animals and their habitat; sustainability – everything from how it builds and operates lodges, to how the head office acts. The company considers everything from plastic and water usage, energy supply and many other principals.

And finally, community partnerships.

Partner funds and trusts run incredible programmes focussed on early childhood development, environmental education, English immersion and enterprise development programmes.

If the community is not thriving and seeing the value of a national park, it will never work. There will be humanwildlife conflict and poaching problems – it’s a delicate and complicated model, but it works.”

Singita is providing a shining example for those in tourism, and across other industries, to follow. By building

// THE GOVERNMENT IN RWANDA HAS DISPLAYED SUCH A SHINING EXAMPLE OF HOW TOURISM CAN CHANGE A COUNTRY’S FORTUNE // sustainable revenue streams to fund the preservation of African wilderness for years to come, the company continues to do the right thing. The work with gorillas in Rwanda, lions and leopards across South Africa, or rhinos in Tanzania is proof that the eco-tourism model works to achieve goals.

It’s easy to see this is an incredible company with visionary leadership.

It takes a passionate team of smart, capable people running the business, doing so many of the right things, to create an environment like this.

Travellers choose to stay at Singita because of the expansive space and beauty of the reserves, limited guest and vehicle numbers, extraordinarily consistent game viewing and the exceptional care that is taken of each guest during their stay. Guests leave a Singita safari being transformed for a lifetime and having made a contribution to the legacy of Africa.

“As a safari company, Singita differentiates itself in a philosophical way. Whereas the growth of many businesses worldwide is bottom line driven, Singita’s decisions take into account 20, 50 and even 100-year horizons,” concludes Luke Bailes.

WWW.SINGITA.COM

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CEO FRIKKIE GROBLER

LOGICALIS SOUTH AFRICA

Not Just IT Solutions but

Global IT Know-how PRODUCTION: Karl Pietersen

Logicalis South Africa brings world-leading technology and ICT ideas to customers looking for unique and ever-changing solutions in a rapidly advancing market. CEO Frikkie Grobler tells Enterprise Africa more about the company’s growth through acquisition, and his plans for further advancement in Africa.

//

There is a new player in South Africa’s ICT industry, one which is coming to deliver excellence and provide the industry with a refreshing approach to problem solving.

Logicalis South Africa was established in 2017 and quickly set about building a reputation for excellence, drawing on expertise from its South African parent company, Datatec, and utilising global technology from the international Logicalis business, established in the UK in 1997.

Over the past two years, Logicalis SA has been busy with a two-phase growth plan which has seen it complete acquisitions and build partnerships with prominent international IT organisations so that it can deliver its offering of: Problem – Solution – Results, in that order.

Logicalis is a specialist in IT solutions and managed services, bringing a wealth of knowledge in hardware, software, security, cloud, shared infrastructure solutions and much more.

After spending more than 30 years in the IT space in South Africa, Logicalis SA CEO, Frikkie Grobler realised that on too many occasions the big businesses were developing ideas and trying to sell them, no matter the needs from clients.

His idea was to create a company that listens to the requirements of the market and brings best-of-breed solutions, proven around the world, to realise real results.

“We are still small and that makes us very nimble,” Grobler tells Enterprise Africa. “All of our engagements are consultative engagements. We do not go to any corporates or potential customers and try and force solutions that do not fit. I preach to our people to listen, listen, listen. We evaluate opportunities and only then give advice on what is the best fit solution. If we cannot deliver, we will walk away.

“I want to measure our business by what we actually deliver,” he adds.

“I want a CFO to tell me that we have added 1% to bottom line, 2% to revenue, or improved productivity by

3% for example. We can only achieve that when we have a consultative process and a trusting relationship.”

This mantra is working for Logicalis which has already managed to pick up a number of corporate customers and is now building its reputation across the continent.

“Our first phase was to build an offshore managed services delivery capability, which we have done. Through that, we moved more than 40 managed services customers and 200 maintenance customers from the UK to SA for delivery,” says Grobler.

“The second phase is the local South African business and advancing into Africa - that was always going to be through strategic acquisition. Our first acquisition was Clarotech which was designed to gain solutions that we believe could open doors for us, and they had a fantastic customer base. The Mars acquisition was to help establish a presence across all of the major centres of South Africa.”

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INDUSTRY FOCUS: TECHNOLOGY

STRATEGIC ACQUISITIONS In September 2018, Logicalis SA completed its first acquisition when it onboarded Cape Town-based IP telephony (IPT) cloud and managed services business, Clarotech. This acquisition boosted the Logicalis portfolio significantly and helped the company to quickly grow its customer base, opening doors with a unique open source voice solution.

In July 2019, Logicalis’ second acquisition was announced after the company completed the purchase of nationwide IT services business Mars Technologies. Specialist in a range of services from remote monitoring of networks and servers through to anti-virus and printers, Mars boasts a history of more than two decades in South Africa.

Grobler, who was on the lookout for a second acquisition opportunity – specifically one which would help Logicalis build a national presence – was introduced to the Mars business by a business associate and friend.

“We did extensive research on the company before I was introduced to the MD,” he says. “Initially they were not ready to sell the business, but we continued our discussions and eventually they realised we were serious about acquiring the business when we put a non-solicited, nonbinding offer on the table.

“We were attracted to the Mars business because of its footprint. With offices in Cape Town, Johannesburg, Port Elizabeth, Durban and East London it gave us an instant national footprint and access to a strong customer base of small and mid-market

enterprises in these geographies.”

Grobler sees the reach as a vital part of the strategy to effectively service big corporate clients. Building a footprint of such scale is a task for many years, so acquisition makes a lot of sense for a company looking to make an impact quickly.

The Mars head office has moved into the Logicalis building and Grobler reports that culturally the businesses are a good fit. While the two companies are still trading as separate entities, full integration will be complete on 1 March 2020 after financial year end.

TECH PARTNERS Logicalis has an enviable list of partners through which it is able to source the very best solutions for its clients. While remaining independent, the company does enjoy several enviable relationships, not just in South Africa but around the world.

In September, the company announced details of a partnership with leading provider of cloud-based security and compliance solutions, Qualys. By partnering with Qualys Logicalis can offer customers a complete end-to-end IT security solution that complements any cloud strategy. As businesses change and CIOs require new and different options, this type of service will become invaluable.

“Digital transformation and investment in cloud infrastructure is growing at a rapid rate and while this brings new opportunities, it also presents new security risks,” explains Grobler. “There are new

// DIGITAL TRANSFORMATION AND INVESTMENT IN CLOUD INFRASTRUCTURE IS GROWING AT A RAPID RATE AND WHILE THIS BRINGS NEW OPPORTUNITIES, IT ALSO PRESENTS NEW SECURITY RISKS // 78 / www.enterprise-africa.net

// THE MARKET IS OPEN FOR A NEW PLAYER AT THIS POINT – THE FEEDBACK THAT WE ARE RECEIVING FROM A NUMBER OF CIOS IS THAT THE MARKET IS LOOKING FOR CHANGE AND LOOKING FOR A NEW PLAYER // vulnerabilities, new regulations and new business risks which are increasingly introduced with digital transformation. Qualys, the globally leading vulnerability management cloud platform, helps companies consolidate their IT security and compliance requirements into a single platform to ensure they remain riskmanaged and IT security compliant.”

In this partnership, Logicalis and Qualys have joined forces to help organisations reduce the number of risks to critical systems by rolling out a unique Vulnerability Management Service as part of a Managed Security Service.

Strong partnerships also exist with major players including Microsoft and Cisco, and it is through these relationships that Logicalis will grow, positioning the business right at the forefront of technological innovation.

“Our strength is in finding the best technologies from our range of vendors and combining them to bring practical solutions to help our clients deal with complicated challenges. We have done this successfully with Cisco, Microsoft and Qualys,” details Grobler.

LOGICALIS SOUTH AFRICA

AFRICAN EXPANSION When Logicalis has established itself firmly in the local South African market, Grobler makes no secret that next will be an expansion on the continent. The company has already dealt with enquiries from different corners of Africa and this is because, at its heart, it is an African operation.

Logicalis South Africa is owned 100% by Datatec, a company established in South Africa and listed on the JSE. Positioning the business as a South African operation has been vital during phase two of the company’s growth plan.

“We have only been approaching the local market since 1 March 2018 (previously we were focussed on providing services to offshore companies). Logicalis is a strong brand internationally but it is mostly unknown in South Africa. Datatec, however, is well established in South Africa, so we are leveraging the brand,” says the CEO. “We do have a lot of great tech that we can leverage from the international group and bring into SA, but essentially we play as a South African company offering global solutions with local expertise.”

When the current acquisitions are totally integrated in South Africa, the next step for Logicalis will be into sub-Saharan Africa before moving further north into other powerhouse African economies.

“Africa is definitely part of our strategy - we already have some interest from African banks for security services where we have assisted by offering various proposals. We have also been approached to supply some equipment into Africa.

“The area we have identified for Africa is within the financial sector. Talking to our local financial institutions, everyone is looking to grow into Africa and we really see that as our first phase drive into Africa.

Hopefully, a lot of that will be off the back of the relationships we have built locally in South Africa,” says Grobler.

5 Stages of Cloud Data Management start your journey today!

Learn more: veeam.com

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INDUSTRY FOCUS: TECHNOLOGY

He explains that questions have already rolled in from Zambia, Nigeria and Ghana, but the focus initially will be on those markets closer to home. “We are looking at which ones we can deliver on right now. It will probably start with Namibia, Botswana and Nigeria before we look at Uganda and Angola.”

BOOMING BUSINESS Over the past decade, the South African economy has become extremely hard to predict. Gone are the days of regular, year-on-year growth for the economy, and today we are riddled with technical recession one day and significant upswing the next. This creates a challenging investment climate for those looking to make long-term decisions.

“So many companies are disappearing and the ICT market has gone through a rough period where a lot of corporates have burnt their fingers. They are now more risk averse and you have to work hard for them to give you an opportunity,”

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says industry veteran, Grobler.

“We have noticed that projects are not necessarily being cancelled but they are being delayed. We were talking with a major financial company in London in February and they were expecting the project to launch in March but the project is only just getting under way now – plans and projects are constantly getting moved out. Corporates don’t have a lot of choice – they have to change but management are wary of making big investments with the current economic and political situation in the country,” he adds.

But in July, IT consultancy firm Gartner predicted that South Africa would become the fourth fastestgrowing major IT market in the world in 2019. IT spending is expected to increase by almost 4% on 2018 and the major investments in local data centres from big-names, including Microsoft, have buoyed the sector.

Logicalis South Africa is poised for further growth and has big ambitions.

“We come from a low base and it

// ALL OF OUR ENGAGEMENTS ARE CONSULTATIVE ENGAGEMENTS. WE DO NOT GO TO ANY CORPORATES OR POTENTIAL CUSTOMERS AND TRY AND FORCE SOLUTIONS THAT DO NOT FIT // is easy to grow at this point,” admits Grobler. “The market is open for a new player at this point – the feedback that we are receiving from a number of CIOs is that the market is looking for change and looking for a new player but establishing a new brand has its own challenges.

LOGICALIS SOUTH AFRICA

CEO FRIKKIE GROBLER

“We have signed some contracts with leading brands in South Africa, and that makes it easier. Again, the relationships with Cisco, Microsoft, Qualys and others are really helping us. We’ve also learned that we need to convince them that we can deliver quality service as they will introduce us to others as long as we can prove we are reliable.”

The range of the Logicalis portfolio, and its extensive knowledge base, make for a formidable new force

// ALL OF THE PEOPLE WERE SO EXCITED TO BE PART OF A BIGGER, INTERNATIONAL ORGANISATION AND THEY WERE ALL SEEING OPPORTUNITIES //

in the South African ICT space. Being a local company is the feather in the cap for this exciting organisation. Right now, things are upbeat for Logicalis.

“After we completed the Mars Technologies deal, I took a road trip and visited all branches throughout the country to meet people and get a feel for the attitude throughout the company – one of the biggest risks when you acquire a new company is that key people leave the company and you end up with nothing. The excitement and positivity that we experienced during the road trip was unreal. All of the people were so excited to be part of a bigger, international organisation and they were all seeing opportunities. Everyone asked if they would be able to work for Logicalis in other parts of the world and the answer was yes, as long as there is an opportunity and you are a good candidate,” says Grobler.

This enthusiasm was infectious in the CEO, and he remains optimistic and excited about future opportunities,

even during challenging local and global economic conditions.

“If you asked me on 1 March 2017 where we would be at the end of 2019, I might have guessed half of where we are now. To actually see what we have achieved is quite remarkable,” he says.

With more than 6000 people and annualised revenues of over $1.7 billion, the Logicalis brand is very strong, and the South African operation will soon become a bigger contributor. By bringing tailored solutions rather than pushing square pegs into round sockets, Grobler and team are continuing to deliver results for clients, and that is the reason Logicalis exists.

WWW.ZA.LOGICALIS.COM

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© SKA

SKA PROJECT

SKA Precursor Continues to

Display Value PRODUCTION: Manelesi Dumasi

One of the great science advancements of our time, the SKA Project is an international effort to further our understanding of the universe. By bringing together the world’s best people and technology, and using South Africa as a base, this project will go down as one which changes the way humans research the skies. www.enterprise-africa.net / 83

INDUSTRY FOCUS: TECHNOLOGY

© SKA South Africa

//

The SKA (Square Kilometre Array) Project continues to break boundaries for global science and local technology development. A major infrastructure mission which sees complex engineering underway across several countries, the SKA Project is advancing human understanding of the universe, but it remains in its infancy.

The project involves building the world’s largest radio telescope, with instruments spread across a million square metres, and the ability to look far into space to understand more about the depths of the universe. In its entirety, the telescope will be one of the most powerful scientific instruments ever created and will dwarf the ability of any current system – even the Hubble Space Telescope.

A combined effort between several member countries, the SKA Project is headquartered in the UK but feels its heartbeat in South Africa’s arid Karoo region, where electrical interference is low and human population is sparse.

Eventually, from here, the project will see many high and mid frequency dishes collect data from

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the sky and high-power computing technology, some of which is still yet to be invented, will combine with data collected from more low frequency dishes located across Western Australia’s Murchison Shire.

Enterprise Africa has tracked the progress of this science and technology mega project and followed as the first seven dishes wet down in the Karoo – the KAT-7 – through until the MeerKAT (the initial 64 antenna array) was inaugurated last year, as well as all of the infrastructure and electronic work in between.

Now, progress continues at a stellar pace with more countries getting involved, more governments realising the benefits of this major concept, more technology going down on the ground, and more discoveries justifying the large investments that have been made.

SA PROJECTS In May, it was announced that 38 South African-led projects would be granted access to the MeerKAT radio telescope.

Eight large international projects will take up two thirds of the telescope’s time and the remainder will be offered

up for ‘open time observation’. Within this bracket, studies ranging from research of Proxima Centauri, the nearest star to the Sun, to investigations of hydrogen gas, the fuel that makes up stars, half-way across the Universe have been given the ok. These studies will be carried out by a host of different groups including students, professors, and national research executives.

South African Radio Astronomy Observatory (SARAO) Chief Scientist, Dr Fernando Camilo, commented on the success of the SKA Project when it comes to the development of a local science industry.

“We knew that the growing South African radio astronomy community was keen to use this magnificent telescope in novel ways,” he said, “and indeed we received many good proposals with clever ideas. While we expected postdocs to lead some proposals, we were surprised and very gratified to receive five proposals led by post-graduate students – including some of the very best! This bodes well for the future of South African radio astronomy.”

SARAO Managing Director, Dr Rob Adam was equally impressed

SKA PROJECT

with the appetite of the local science community. “A decade ago, such a call for South African-led projects would have resulted in a handful of proposals.

But while designing and building MeerKAT, in parallel we invested in the people, developing a human capital development programme closely tied to the science and engineering of MeerKAT and its associated technologies. This directly accounts for the success we see today, with this large number of young South Africans poised to use one of the world’s great research instruments.”

MOST POWERFUL COMPUTING Also in May, a group of computing experts, led by Cambridge University, offered up the engineering design work for the Science Data Processor (SDP), ready for the Critical Design Review (CDR). The SDP will be made up of two

super-computer components, one in Cape Town and one in Perth. The amount of data that the mid frequency telescope will collect is more than enough to fill 340,000 standard laptops, every day.

This requires a serious amount of power.

The design and engineering is vital and is helping to showcase excellence in South Africa by members of the SDP consortium, including the CSIR Centre for High Performance Computing (CHPC) and the University of Cape Town (UCT).

Dr Adam was delighted with progress, saying: “The unique requirements for the SDP have also driven our specialists to be creative and design unique technologies that allows SARAO to contribute to economic development and commercialisation in South Africa.”

Following from this important milestone, in July, the next hurdle

was overcome when the Assembly, Integration and Verification (AIV) Consortium of the SKA Radio Telescope completed its initial work. Vitally important, this work helps to ensure that telescope elements have been designed, tested, built, assembled, and verified. There is no room for redesign or reengineering after the project has gained momentum. Led by the SARAO, the AIV Consortium is responsible for quality control, and to date, its work has been successful.

“SKA-MID will consist of nearly 200 dishes in South Africa and 130,000 antennas in Western Australia, so we don’t want to assemble and integrate and then discover something crucial is missing, or doesn’t work as we expected it to,” said Richard Lord, AIV Consortium Lead at SARAO. “We’ve learned valuable lessons from MeerKAT about how challenging

We are building state-of-the-art receivers for the world’s most powerful radio telescopes Imagine what we can do for you

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Photo courtesy of SARAO

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INDUSTRY FOCUS: TECHNOLOGY

© SKA South Africa

AIV can be if issues are identified too late during deployment. Planning for the AIV now gives us the best possible preparation for accurate procurement and construction for the SKA.” SARAO Chief Technologist, Justin Jonas agreed, saying: “The AIV programme is critical to ensure that telescope elements, that have been designed and built by a dispersed global community, are tested, assembled and verified in a rational and thorough way, thereby ensuring that the entire telescope system will work as designed, to budget and on schedule.”

Peter Hekman, Engineering Project Manager responsible for AIV at the SKA headquarters, praised the work and highlighted its importance moving construction forward. “This small consortium has moved mountains in terms of the amount of preparation done for both SKA telescopes I want to sincerely thank them for their efforts.

After System Critical Design Review their work will really begin to pay dividends, as we put these plans into action with the construction of the SKA.”

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PROVING ITS WORTH After its official inauguration in the presence of Deputy President David Mabuza in July 2018, the MeerKAT telescope has already proven its worth as a precursor to the SKA, collecting highly valuable data about a supermassive black hole at the centre of the Milky Way. At the end of July 2019, the MeerKAT discovered missing gas in distant galaxies. A team of astronomers used the MeerKAT telescope to discover vast amount of hydrogen gas located in galaxies sitting 60 million lights years away from Earth. Research suggests that the location is a galaxy formed after the collision of two major galaxies more than two billion years ago. The new galaxy subsequently absorbed smaller satellite galaxies and led to confusion about why a nearby galaxy, NGC 1316 seemed to have so little hydrogen.

The MeerKAT was central in the finding as Paolo Serra of the Italian National Institute for Astrophysics (INAF) – Observatory of Cagliari, and lead author of the new study, explains: “We

// SKA-MID WILL CONSIST OF NEARLY 200 DISHES IN SOUTH AFRICA AND 130,000 ANTENNAS IN WESTERN AUSTRALIA, SO WE DON’T WANT TO ASSEMBLE AND INTEGRATE AND THEN DISCOVER SOMETHING CRUCIAL IS MISSING // show new radio images obtained with MeerKAT, which reveal where all that hydrogen was hiding – it’s distributed in two long, faint, gaseous tails, stretching to a large distance from the galaxy. The tails were generated by tidal forces in

SKA PROJECT

© SKA South Africa

action during the merger. The amount of gas found is consistent with that expected based on merger theory, and on the fact that the smallest progenitor galaxy was alike the Milky Way. Thus, thanks to these observations all pieces of the puzzle are now in place, and we finally have a more precise and coherent understanding of the formation of this famous galaxy.”

Fernando Camilo added: “With this beautiful piece of work, Paolo and his colleagues, among whom are several young South Africans, have significantly advanced our knowledge of the formation and evolution of galaxies.

This provides a wonderful taste of what MeerKAT will do in years to come.”

BUBBLING WITH POTENTIAL September was a very important month for researchers using the MeerKAT, looking forward to partial use of the SKA telescope in mid 2020s. A team of international astronomers tuned the telescope towards the centre of the Milky Way and detected enormous balloon-like structures that tower hundreds of light-

years above and below the centre of our galaxy. The theory is that a major energy burst, which occurred around two million years ago, next to the supermassive black hole at the centre of the galaxy caused the immense bubbles, only detectable by the MeerKAT. The discovery was published in the journal, Nature.

“These enormous bubbles have until now been hidden by the glare of extremely bright radio emission from the centre of the galaxy,” said Fernando Camilo, a co-author on the paper. “Teasing out the bubbles from the background noise was a technical tour de force, only made possible by MeerKAT’s unique characteristics and ideal location. With this discovery, we’re witnessing in the Milky Way a novel manifestation of galaxy-scale outflows of matter and energy, ultimately governed by the central black hole.”

This type of science has previously been unachievable and demonstrates the huge steps forward that are being made possible by the MeerKAT and wider SKA project.

At the beginning of the project,

back in 1993, a concept was discussed that could answer the big questions in astronomy including how galaxies evolve, what is dark energy, how are black holes are stars formed, what generates giant magnetic, and was Einstein tight about gravity. After more than a quarter of a century of development, bringing together some of the world’s finest minds, even the early sceptics have to admit that the SKA Projects is already showing its worth to mankind.

In South Africa, the offshoots have been massively beneficial and, with more than a decade of work yet to come, the future looks extremely exciting.

WWW.SKA.AC.ZA

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How will SKA1 be bette than today's best radio Astronomers assess a telescope’s performance by looking at three factors - resolution, sensitivity, and survey speed. With its sheer size and large number of antennas, the SKA will provide a giant leap in all three compared to existing radio telescopes, enabling it to revolutionise our understanding of the Universe.

WITH THE SKA

WITH CURRENT RADIO TELESCOPES

LOFAR Netherlands

SKA1 LOW Australia

SKA1 LOW SKA1 MID

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RESOLUTION Thanks to its size, the SKA will see smaller details, making radio images less blurry, like reading glasses help distinguish smaller letters.

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SURVEY

Thanks to its sensitivi larger area of the sky be able to observe m given time and so m

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Karl G. Jansky Very Large Array, USA

SKA1 MID

The Square Kilometre Array (SKA) will be the world’s largest radio telescope. It will be built in two phases - SKA1 and SKA2 starting in 2018, with SKA1 representing a fraction of the full SKA. SKA1 will include two instruments - SKA1 MID and SKA1 LOW - observing the Universe at different frequencies.

WITH THE SKA

WITH CURRENT RADIO TELESCOPES

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LOFAR NL

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ity and ability to see a at once, the SKA will more of the sky in a map the sky faster.

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SENSITIVITY Thanks to its many antennas, the SKA will see fainter details, like a long-exposure photograph at night reveals details the eye can't see.

e SKA isn't operational yet, we use an optical image of the Milky Way to illustrate the concepts of increased sensitivity and resolution.

PFK ELECTRONICS

Leading the Golden Age of

Automotive Innovation PRODUCTION: Benjamin Southwold

PFK is a globally renowned designer and manufacturer of advanced technology, specialising in innovative automotive solutions for manufacturers, major fleet and freight companies and the public transport sector. South Africa is often labelled a golden opportunity for automotive innovation, and it is a characteristic at the heart of the Autowatch and PFK Shurlok brands under which PFK produces every one of its tailor-made solutions in-house. www.enterprise-africa.net / 91

INDUSTRY FOCUS: TECHNOLOGY

//

PFK Electronics has been a supplier of automotive electronics systems for over 30 years, established in Durban, South Africa in 1985, today known as a major player in both the local and global markets having established offices in Durban, Johannesburg, Cape Town, Port Elizabeth, the UK, Canada, the USA and Sweden. It has supplied all of the leading automotive original equipment manufacturer (OEM) producers operating in South Africa, as well as a growing number of international outfits.

“More than just another technology manufacturer,” PFK interjects, “our vision is to be a key strategic partner and business enabler to clients around the world, offering a world-class suite of proactive risk and asset management technologies.” Quality is a core value that defines PFK, with every product manufactured to international standards to give a level of reliability and design excellence which enables them to fulfil the stringent requirements

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of the industry’s most highly respected governing bodies.

The strong partnerships it has constructed and the tailor-made solutions at its fingertips have enabled PFK to design turnkey offerings for the end customer, solutions which leverage the more than three decades of OEM and ISO-certified experience it has accrued. “The company is driven by a strong culture of innovation,” PFK says, “which translates into a finished product through its extensive research, development and world class production standards and capabilities.

“To this end, PFK has the ability to build even the most specialised electronic products from print to design.”

FUTURE OF AUTOMOTIVE TECH The African market represents around one-third of all automotive sales across the Middle East and Africa, and three in particular arise time and again when companies come to setting their sights: South Africa, Egypt, and Morocco. All have major

// OUR VISION IS TO BE A KEY STRATEGIC PARTNER AND BUSINESS ENABLER TO CLIENTS AROUND THE WORLD // sales potential due to their size, population growth and increasing wealth, propelled by a developed OEM presence and a desire to take on new technologies at a rapid rate to help transform their economies and living standards.

South Africa in particular is a key market, as it represents more than 50% of all new car sales across Africa. It is also a manufacturing and assembly hub for a number of OEM’s serving not only the domestic market, but exporting too to a number of destinations across the sub-Saharan region and beyond.

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INDUSTRY FOCUS: TECHNOLOGY

// THE COMPANY IS DRIVEN BY A STRONG CULTURE OF INNOVATION // Automobile Manufacturers of South Africa (NAAMSA) recorded over 32,000 new cars sold in July 2018, representing a 4.3% increase on the previous year; sales to the car rental industry contributed nearly 19%. “For now, the South African market is looking very attractive,” Medium.com underlined, with the potential to absorb into its infrastructure many more vehicles than it currently has.”

Connected car technology is not new to the continent. In fact, connected car technologies have been used in South Africa and the wider region for several years and the consumer market is now fully ready to embrace the concept and the reality of the connected car.

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“The automotive industry is experiencing a period of intense disruption, and consumers are starting to make their voices heard as to which innovations they value most,” said Karthi Pillay, Africa Automotive leader at Deloitte. “It will be interesting to see how the industry develops as advanced technology becomes more widespread.

“Africans understand the value that the information age brings to the consumer experience,” finished Medium.

“Connected cars like connected things are becoming mainstream here. But with the connected car locals can make their driving experience safer and more enjoyable.”

IN-HOUSE EXCELLENCE “PFK’s goal is to not only be best-inclass in its existing product markets,” it summates, “but to translate its expertise in emerging and exciting new technologies.” An unbending focus on innovation and technological progress has reaped enormous rewards for PFK in an enviably short space of time.

In its early days, PFK designed products exclusively for the South African Defence Force, the success of which led to the creation of the Autowatch brand in 2009. In 2012, PFK was then able to expand its capabilities yet further into control instruments by acquiring Pi-Shurlok, which supplies a variety of body control modules and many other custom-built parts and plastics to Original Equipment Manufacturers.

As a result, production facilities were moved into Pietermaritzburg.

“This state-of-the-art production facility afforded the rebranded PFK Shurlok the ability to custom build unique solutions in high volumes, to a variety of clients and design specifications from around the world,” the company explains. “Our manufacturing and testing facilities in Pietermaritzburg cover an area of more than 8500m², allowing for cutting edge design and rigorous testing of every product we create, including those sold under PFK Shurlok and the three Autowatch brands.”

PFK ELECTRONICS

Under the watchful eye of a team of top design engineers, PFK proudly designs and manufactures all products in-house. Established in 1969, Pi-Shurlok had already garnered international acclaim by the time PFK came knocking, and the takeover and rebranding to PFK Shurlok in 2012 saw its product offering much extended.

“PFK Shurlok is a world class designer and manufacturer of OEM (Original Equipment Manufacturer) products, with unparalleled production capabilities and proven quality standards. The business has an impressive array of awards and certification from a substantial list of globally recognised vehicle manufacturing brands.

// WE ARE THE GO-TO OEM SUPPLIER FOR MOST OF THE MAJOR MOTORING BRANDS //

“We are the go-to OEM supplier for most of the major motoring brands, with awards from Ford, Toyota, Volkswagen, BMW and others.”

Today, Autowatch is the leading supplier of vehicle security, telematics and vehicle interlock solutions in South Africa and further afield, having carved out firm footholds in the USA, Australia and Europe. Since their first introduction to the market in 2003, Autowatch Breathalok products have been at the cutting edge of alcohol ignition breathalyser systems, while Autowatch VSS has transformed the decades of realities of vehicle theft and hijackings in South Africa to develop peerless vehicle security solutions.

Completing the Autowatch line-up is PFK’s innovative 852 Video Telematics solution offering. Deploying telecommunication devices and advanced algorithms, it takes tracking and video fleet management far beyond stolen vehicle recovery through its wealth of experience designing and manufacturing systems for major

international companies.

It is a golden age for South Africa and its automotive tech sector, and PFK’s dedication to and application of innovation sees it leading the charge.

“What makes our facilities state-of-theart,” explains CEO Marco Valente, “isn’t necessarily just the technology but also the people, processes, standards and practices that we rigorously maintain and hold to ensure research and development (R&D) and production of the highest quality products.

“PFK’s very nature is to innovate— we have been doing so for nearly four decades when the business started in a small basement facility in Durban.

Today, we have state-of-the-art robotics and technology, which can bring whatever innovations our partners need, to life.”

WWW.PFK.CO.ZA

www.enterprise-africa.net / 95

CSI THABILE

Strong Growth & Investment

Spells IT Success PRODUCTION: William Denstone

Amid a moribund overall economic feeling, South Africa is pegged for both rapid growth and strong spending in its information technology (IT) sector. CSi Thabile is ideally placed to capitalise fully on such confidence and opportunity, coupling the latest tools, equipment and innovative technologies with an unparalleled knowledge and understanding of data centre design.

//

Starting life in 1981 as Computer Site Installations, CSi Thabile has come to be known for providing the physical platforms required to secure, manage and control the support systems that are so critical to the continued availability and function of IT infrastructure. Whatever the name behind its work, nearly 40 years of experience and continual investment in training and education of staff has kept the firm at the top of a very crowded pile in South Africa.

CSi Thabile is 51% black owned and a level 2-rated BBBEE contributor and, through a specialised trust, funds the education of promising students from disadvantaged communities. “We aim to be a leading IT networking and cabling company that offers turnkey solutions and services to customers in Southern Africa,” the company summarises, “led by our key values of integrity, reliability, respect and professionalism.”

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MAJOR GROWTH According to new research from Gartner, South Africa is expected to be the fourth fastest-growing major IT market in the world in 2019. Gartner’s Research VP John-David Lovelock told TechCentral in July that the strong performance is set to be driven by companies’ embracing cloud computing, particularly on the back of investments by international cloud providers in local data centres, as well as corporate investments in software deployments and upgrades.

IT spending in South Africa will total R303.5-billion in 2019, a 3.9% increase from 2018, with IT services and software expected to continue to perform well. “South Africa is still behind in terms of overall IT spending and continues to have a ‘technology debt’ to pay off,” Lovelock commented.

“However, by achieving 3.9% growth in 2019, South Africa will be one of the fastest-growing countries in the world

— ranked fourth globally.”

Corporate spending on cloud services and digital transformation is likely to be the sector’s saving grace in the coming years. “People who did not have cloud are now piling in,” Lovelock impressed. “Spending is almost all cloud-based growth, and CIOs must decide whether to build on-premise data centres or use the public cloud — and the cloud is prevailing.” The trend is being aided by Microsoft and Amazon’s launches of local hyperscale data centres.

// CSI THABILE IS A COMPANY AT THE CUTTING EDGE OF LEADING INNOVATIVE TECHNOLOGIES //

INDUSTRY FOCUS: TECHNOLOGY

COMPLETE SOLUTIONS However the growth manifests, you can be sure that CSi Thabile will be on hand to facilitate it. The company splits its operations handily into three main arms: Connect, Equipment and Secure. A certified and registered supplier and installers of all major fibre optic and UTP cable and component suppliers, it can also ensure that these are expertly housed in any major local or international cabinet, of all standard shapes and sizes.

Its equipment offering is vast, too, covering almost the entire range of needs for either a fledgling or fully established business. On the one hand, CSi Thabile will undertake the fabrication of server or network rooms themselves, encompassing brick works, fire-rated dry wall and doors and ceilings, and the installation of a raised or access floor with variable choice of height and scratch resistant cladding.

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On the other are the more intricate aspects of such a project: CSi Thabile will eagerly supply and install air-conditioning units, as well as the associated pipework, drainage and electrical supplies. Perhaps most crucially, the IT giant provides normal and dedicated power reticulation, to ensure consistently reliable and good quality power is available to computer and support equipment at all times.

Staying safe and secure should be, and increasingly is, among a business’s primary concerns, and CSi Thabile minimises both the physical and cyber risks with aplomb. Designing and implementing fully automated fire detection and protection systems is one of its responses; these comply with insurance companies’ stringent demands, and come complete with control panels with monitoring interface, visual and audible warnings and integrity testing.

“The security of any sensitive site should include the security of the equipment and personnel, without hindering daily movement of staff carrying out normal daily functions,” it continues, and in response has devised solutions numbering biometric access control, including magnetic locks and door closers, CCTV monitoring

// WE AIM TO BE A LEADING IT NETWORKING AND CABLING COMPANY THAT OFFERS TURNKEY SOLUTIONS AND SERVICES TO CUSTOMERS IN SOUTHERN AFRICA //

CSI THABILE

and recording and the monitoring of vital IT support facilities. Everything is taken into consideration, and all threats are nullified.

CHILDREN’S HOSPITAL So notorious is its superior expertise in relocating, upgrading and establishing data centre environments and network that CSi Thabile was awarded a valuable tender for the IT infrastructure at Nelson Mandela Children’s Hospital. “CSi Thabile is a company at the cutting edge of leading innovative technologies, and is certified on all premier products on the market and remains committed to providing service excellence, and to delivering on time, every time,” the company says of its appointment.

According to CSi Thabile’s Sales and Marketing Director, Mark Cheketri, “to be able to tender on projects requiring

these products you should have the OEM certification to design and install the product. CSi Thabile is in the fortunate position of being certified for design and installation of all premier products.

“It is vital that we apply the correct standards, because routes and ceilings are generally closed as soon as we have completed each section, and any faults may require re opening of ceilings and stripping of looms,” he went on.

“This in itself could cause delays and wasted labour. If the entire installation has been done and certified, the extended warranty gets issued, and the installation could run without any failures for many years as long as there is no physical abuse.

“We have been in existence since 1981, and we have staff members that go back more than 30 years with us,” Cheketri concluded. “The IT industry is

small and everyone knows everyone.

We find that service is the name of the game - you have to deliver at both the big jobs and the small jobs. You can’t always expect the client to only give you the big jobs. We have to be as enthusiastic about an order for R100 as we are for a R10 million order.

“Too many companies in the IT industry only go for the big jobs and their after-sale service does not exist,” Cheketri mused of the importance of consistency and reliability to CSi Thabile’s continued success. “We try hard to retain our customers by giving them the service that they deserve.”

WWW.CSIGROUP.CO.ZA

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NATIONAL PACKAGING SYSTEMS

36 Years of Automating Africa’s Food Packing PRODUCTION: Karl Pietersen

For almost any food product that needs packaging, Durban’s National Packaging Systems can provide a solution. Whether you’re a company based in South Africa, on the continent, or elsewhere in the world, this innovative and historic business can deliver. Quality is at the centre of everything it does and CEO John Pelucci tells Enterprise Africa that, thanks to a culture of excellence, everything is going well.

//

From its base in Pinetown, KZN, National Packaging Systems (NPS) – the local manufacturer of machinery for use in the food and beverage industry – has grown to become internationally renowned and recognised as a business that delivers excellence.

This is quite an achievement for a business operating in what is a

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strained economic environment and a manufacturing sector that is under extreme pressure.

Core in the NPS product range is vertical form, fill and seal machines; volumetric fillers; auger fillers; feeding systems and conveyors. The machines are used to sort and package powders, grains, liquids and other food groups.

While many international

manufacturers play in this space, there is a clear desire from local companies for a South African-based company to assist, and NPS has obliged. Growing from a small team in a minor facility, the company now boasts a group of industry leading engineers, an innovative and highly technical product offering, a wide range of different machines, an all-encompassing after

INDUSTRY FOCUS: MANUFACTURING

sales service, and a focus on machines built in Africa for Africa.

CEO John Pelucci – a mechanical engineer and a veteran of the packaging industry – tells Enterprise Africa that the NPS edge comes from building close relationships with clients which allows for a deep understanding of exactly what is required from a machine.

“We have a strong design team and we do a lot of design and development,” he says. “We listen to our clients and listen to their feedback about the machines. Some of our machines in the market are now third generation machines. We only build the machines, our clients run them. If a client says that they don’t like a certain feature, we will take it away for the next design – we are always improving.

// WHEN THE CUSTOMER SEES OUR MACHINE AND WHAT IT CAN DO, THEY USUALLY ASKS FOR A NEW MACHINE FROM US ANYWAY // 102 / www.enterprise-africa.net

“We can take control of a machine from anywhere in the world and we have a system that we can put onto any machine, not just our machines, and it will tell you when the machine starts, when it stops, how many empty sachets come through, how many full sachets – it gives a complete production report to our central mainframe.

“We have a lot of feedback from clients right now saying that they want this system on all their machines, not just those manufactured by us,” he adds.

Ultimately, NPS machines offer cost savings, efficiency improvements and faster speed to market for customers. With some of the world’s largest food companies as clients, these offerings are vital for the business.

“We are into many big brands including Unilever, Cadburys, Sasko, Saint Gobain and Tiger Brands.

We have been told we are the biggest manufacturer of packaging machines in South Africa. A lot of our competition build one or two machines but are agents for multiple machines. We are the other way around – we build 40 types of machine with 60 variants and we are agents for just four machines.”

QUALITY & INNOVATION Pelucci states that it is not only customers that understand the level of NPS quality, the rest of the industry is also aware of how innovative the company is.

“The quality of our machine is a real difference,” he says. “We recently attended an international trade show and we had Bosch coming to us and congratulating us on the standard of our machine, saying we are working to international standards and claiming that they see our machines everywhere they go. Because we manufacture locally, and we have local back up service, we have a niche in the market.

If I can’t supply a part ready for shipping by the next day, I’ll give it away for free.”

This commitment to not only a quality product, but also a quality service, gives NPS an advantage in the market and encourages local users to enquire about further service, asking NPS to overhaul machines that they may not manufacture. Of course, Pelucci is happy to assist, happy in the knowledge that every call out on a machine that isn’t made by NPS provides an opportunity.

“90% of the time, we can sort a problem with a machine over the

NATIONAL PACKAGING SYSTEMS

phone. If not, we use our digital system, and if that doesn’t work, one of our technicians is on the next flight.

“We could work on some machines from Europe and we could overhaul machines from big-name brands, but we will not work on Chinese or Indian machines. When the customer sees our machine and what it can do, they usually ask us for a new machine from us anyway.”

The strength that NPS has built its name on comes in the form of vertical form fill and seal machines, often used for the packaging of product into bags.

But, even in this sector where NPS is a leader, it is still vital for the company to produce high-quality because of the competitive nature of the industry.

“Vertical form fill and seal machines are the most common machine in the world and everyone manufactures them,” Pelucci claims.

“The vertical sachet and vertical stick pack machines are different altogether, and very few companies manufacture these,” he adds. “No one in South Africa does it, and only some of the big players around the world do it. When you buy an international machine, you pay through the nose – they are usually three times the price of ours, and you also pay their labour rate when they come over. Also, the backup service is not local and we provide that.”

FULLY PACKAGED The packaging industry in South Africa is big business and, according to Deloitte, is showing great potential for growth.

Consumer markets in Africa are growing, and a focus on health and wellness alongside urbanisation will see the demand for packaging products and reliable packaging machines expanding.

Both East and West Africa remain quickly growing regions and the expectation is that this growth will provide major opportunities for packaging businesses.

NPS is already active in Africa and is keen on furthering its export market on the continent.

“We deal with a lot of big, corporate companies and we do 75% export.

We export into Africa, Australia, the UK, USA – the African market is ok, we completed a large project in 2016 where we had a big order for 75 vertical sachet machines for export that can produce 360 sachets per minute,” says Pelucci.

He explains that the largest project NPS has completed was in Nigeria, a $3.8 million job, for one of the largest companies in Africa.

“It is a company that packs milk powder into sachets,” he says. “The beauty of our machine is that, if you buy

PINETOWN BOLT & ENGINEERING

BOLTS | NUTS | INDUSTRIAL FASTENERS | TOOLS

From humble beginnings in 1981 Pinetown Bolt & Engineering has since grown to a leading distributor of fasteners and allied products. Catering, both for the industrial and domestic market.

We are dedicated to providing service excellence by all our highly experienced sales team and go the extra mile to satisfy our customers. Pinetown Bolt objectives are to steadily improve the stock holdings and to supply from an ex-stock position. This includes improving our already comprehensive range of fasteners whilst remaining competitive to the market and maintaining our quality standards. www.pinetownbolt.co.za | sales@pinetownbolt.co.za | Tel: 031 702 9972/4 | Fax: 031 701 6272

www.enterprise-africa.net / 103

INDUSTRY FOCUS: MANUFACTURING

a four-sided-seal sachet machine, and you want to increase from a 60mm wide sachet to a 70mm wide sachet, you’d have to buy a new machine. With us, the Nigerian company can now do a 65, 70, 80 and 120mm in the same machine.

No other machine in the world can offer this, and it offers huge cost savings for our customers with just a 30-minute change over time between sizes.”

After more than 35 years in business, the company remains future-focussed and has lined up a very strong pipeline, both in export and local business.

“We have a contract coming up in Papa New Guinea, we are doing work for Walmart, we have just landed a major contract with a large sweet company in South Africa where we competed against five international companies but won the contract. That is for six major lines and we are busy manufacturing right now, ready for installation in November.

“We are busy with a machine for De Beers – a diamond packing machine. That is a major project where the first machine is about to be commissioned. They will likely go onto ships that draw diamonds from

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the seabed and they are then packed through the machine with an RF tracker so they can be traced anywhere in the world. The machine will also be used for land-based mines as well, not just in South Africa but internationally too.”

Fortunately for NPS, the country’s exchange rate is promoting export business. The Rand against the Dollar, Euro and British Pound makes South Africa attractive to buy from.

“The exchange rate right now is horrific but that is better for us in the export market. We still work in South Africa but 75% of our business is now export.

“We are a well-known business on the continent – when it comes to salt or sugar packaging, no one can touch us for speed, not even the big international players. Some machines are doing 50 packs per minute for 500g, 45 for one kilo and 30 for two kilos. We are 55 per minute across all three sizes. We also offer the full turnkey project from raw material coming in to finished product going out of the door,” explains Pelucci.

HISTORIC SA BUSINESS Pelucci’s involvement with the company started in 1994 after the

// WE HAVE BEEN TOLD WE ARE THE BIGGEST MANUFACTURER OF PACKAGING MACHINES IN SOUTH AFRICA // initial registration of the firm in 1983.

He purchased the company from one of the original owners after the other partner passed away. In 94, the company was a small concern and the new owner was keen to expand.

“At the time, the company was building one machine. Today, we build 40 different types of machine and 60 different variants.

“In 1994, the business was just keeping its head above water and not much more. It was operating out of a 400m2 premises. In 1996, we doubled the floor space, and in 2001 we moved to a new location with 1250m2. Two years ago, we moved again into 3100m2 and our staff has grown from 10 to 65.”

NPS has always been located in KZN and remains a South African business, building machines for the

NATIONAL PACKAGING SYSTEMS

African environment.

Pelucci is confident about the future, and he is buoyed by the response to his company’s success by the industry.

“We are growing all the time. You just have to look at the others in our industry – one wanted to buy us to close us down because we are affecting them, the other wants to buy us because they can see where we are going. They see our technology and they see the standards we are working to.

“Going forward, we would like to push for more business in the UK and USA but we are not too worried about where we sell machines,” he says.

MANUFACTURED SUCCESS South Africa’s manufacturing sector has seen mixed success over the past few years. The wider industry is driven by automotive manufacturing, petroleum and chemicals, and food and beverage, but these parts of the manufacturing industry have all realised their own struggles, often shedding jobs and witnessing a decline in contribution.

// I ENJOY WHAT I DO AND IF YOU DON’T ENJOY IT THERE IS NO POINT DOING IT //

Specialist manufacturing is hit and miss, and if a company cannot deliver for its clients, it can soon pay the price.

But NPS is a picture of health and is taking advantage of all of the opportunities coming its way.

“In the engineering industry and construction industry, people are struggling. In our industry, everybody has to eat food and it has to be packaged. A lot of the companies have old machines that are having a lot of downtime, so they have to buy new machines. Yes, the economy is upside down and we often do not know what is happening one day from the next, but we are still busy,” says Pelucci. “Africa is growing, Nigeria is going through the roof. We have a project with a major global food company in Nigeria where a bespoke system was needed that didn’t exist. We have designed the system and other players in the industry are looking to us to supply something similar.

“We do a lot of bespoke machines.

If we are at an exhibition and someone approaches our competition with something specific in mind, they will say ‘we only do standard machines, go and see NPS’. Our machines are specialised and customised for what the client wants,” he adds.

This innovative and forwardthinking business - whose machines go on to do most of their work behind the scenes in Africa’s food supply chain - has

become an example to follow. Every aspect of the company is under one roof and this allows total quality control.

“We train people from the floor up.

People start at the bottom and work their way up. My current partner started out as an electrician and he is now a shareholder in the company. A lot of people have been with us for 20 years,” says Pelucci. “We manufacture everything under one roof.

Raw materials come in, we manufacture all the parts in our machine shop, we handle all fabrication, we assemble the machine, and then run the machine in our factory with the clients materials and conditions for factory acceptance testing (FAT) purposes, and when they are happy we strip it down, crate it, send it to site, and then we go and install and commission it.”

This approach has seen NPS become an integral part of its customers operations, and when a business can achieve this status, growth should come organically.

Pelucci is happy with where NPS is now and excited about the future.

“I enjoy what I do and if you don’t enjoy it there is no point doing it,” he concludes.

WWW.NATIONALPACKAGING.CO.ZA

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WIRQUIN SA

Ever-Growing Wirquin Continues on Expansion Journey PRODUCTION: Manelesi Dumasi

Wirquin SA distributes and manufactures plumbing and sanitary products that save water and space, and allow consumers to enjoy their kitchens and bathrooms. In South Africa, the company is a market leader in terms of brand recognition, and so CCO talks to Enterprise Africa about how the company will be expanding over the next two years.

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INDUSTRY FOCUS: MANUFACTURING

//

With economic conditions remaining somewhat in the toilet in South Africa, very few businesses are finding a strategy that is allowing them to achieve meaningful growth. Although a 3.1% uptick in GDP was registered by Stats SA for the second quarter, this followed a 3.2% slump in 2019’s first three months. The environment remains unpredictable and, as soon as some positivity is injected, it can just as quickly be flushed away.

This is similar in global markets where companies are now having to work harder than ever to achieve margins.

Plumbing and sanitary equipment specialist, Wirquin Manufacturing SA, provides the perfect case study of a business that is realising growth, but is being held back from achieving its full potential by stagnant economies, globally and locally.

Featured in Enterprise Africa in 2017, Wirquin SA – the regional arm of the French multinational – was growing nicely, introducing innovative new products that were helping plumbers to achieve maximum efficiency in bathrooms and kitchens. Today, Chief Commercial Officer, Adler Teubes tells Enterprise Africa that the company’s

// WE CONTINUE TO PLUG AWAY, LITTLE BY LITTLE, ALWAYS WORKING ON SERVICE, QUALITY AND INNOVATION, WHILE TRYING TO OFFER OUR CUSTOMERS AND THEIR CUSTOMERS THE BEST VALUE FOR MONEY,” // 108 / www.enterprise-africa.net

growth is ongoing and will soon hit top gear as a facility expansion is signed off.

“We’ve been talking to the board for three years but I think we will get the go ahead next year. As far as we are concerned in South Africa, it’s underway – we are just waiting for the final board approval,” he says.

He describes the current situation in the warehouse as one where the company is ‘bursting at the seams’, housing many products to meet insatiable demand. The manufacturing facility is also in need of additional space to install new machines and improve output.

“We are looking at taking our space up to 8000-9000m2. It’s a big expansion; the need for extra space comes from increased demand. We are part of an international organisation and we work on economies of scale so certain items become cheaper to import rather than going through the capital expenditure required to produce new moulds etc. As we have been increasing our volumes in the local market, we have also increased our production requirements as we now do the volumes that warrant a capex spend on tooling - it is cheaper to manufacture locally. We have also seen natural growth with other products.”

For manufacturers in South Africa, the current economic climate has been prohibitive. Few are willing to invest until long-term government policy is detailed and any investment can be made securely. From the Wirquin HQ in France, where the investment decision is ultimately made, a close eye has been watching over the South African economy.

“The entire economy, not just in South Africa but around the world, is taking a dive and that effects the big European companies. Cash-flow, growth and profitability for all European manufacturers are under immense pressure and everyone is turning a dime six times before they spend it - that is the reality of the market.

“We have set up everything locally and as soon as we get the go

// WE BELIEVE IN WHAT WE’RE DOING, WE BELIEVE IN OUR PRODUCT, AND WE BELIEVE WE WILL GROW // ahead, we can press the button and start building. The build will take around nine months, and then we will be able to move into the premises. We would plan to get into the new premises in the first quarter of 2021,” explains Teubes.

With more space, Wirquin will be more efficient and will be able to automate. Specialist new machines will be sourced from Spain and Italy, demonstrating the company’s desire for excellence.

“Since 2017, we have put four new machines into the factory and we are quickly running out of space. We need blow moulding and compression moulding machines to continue our growth,” says Adler.

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ALWAYS INNOVATING One of the strengths of Wirquin, and something which has separated the company from its competition globally for many years, is the fact that it offers such a comprehensive product range, manufactured to the highest of quality standards.

The company is also an innovator, regularly introducing new products to solve problems and advance layouts of plumbing and sanitary equipment.

“Every year, we bring out at least 10 new products within the group internationally. There are three specific products that we will be concentrating on for the new year in the South African market,” details Teubes.

These new products will be for the shower industry, one where

Wirquin has enjoyed much success, and Teubes is excited.

“One is a ready to install shower tray – that is nothing new in Europe but it’s new for South Africa – a composite material that is just dropped straight into the shower. This is a massive product in mainland Europe. We want to bring it to South Africa to revolutionise the shower tray industry.

“A lot of our new products have nanotechnology and that is for space saving, taking up very little space under your basin or bath, or within the slab for a shower. With this new technology, we are able to assist a lot of the developers in constructing multi-storey buildings with showers where they do not negate the integrity of the slab because they do not need to dig deep into the slab

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to install the traps. We believe these products will be real winners because of the nanotechnology,” he says.

Currently, Wirquin boasts the lowest profile shower waste on the market and a Neo waste trap which offers the assurance of no leaks. The range also includes a toilet seat fixing which comes with lifetime warranty and promises to completely stop any seat movement. It is the company’s ability to solve problems that allows it to keep growing.

MARKET STRENGTH Despite economic downturn, and capacity problems, Wirquin remains a growing business. The brand is strong and relationships with wholesalers are well-serviced. The company has also managed to develop robust export

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INDUSTRY FOCUS: MANUFACTURING

// EVERY YEAR, WE BRING OUT AT LEAST 10 NEW PRODUCTS WITHIN THE GROUP INTERNATIONALLY // channels and Teubes has no intention of stemming the flow anytime soon.

“We have been fortunate in the past three years and we are growing.

Our factory is expanding and we are happy with our performance, even with our high expectations. The general market and economy is bad, the building industry is terrible, and overall people are saying that if you are growing on your previous year then you are doing well.

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“Export is growing, but not in a major way. Our biggest growth is coming from our complete range. We are stealing a little bit of market share in everybody’s market. There are certain areas where we are not so happy - the DIY segment, for example – but overall we are still managing to grow. We continue to plug away, little by little, always working on service, quality and innovation, while trying to offer our customers and their customers the best value for money,” he says.

Going forward, Wirquin will utilise its local manufacturing facility to offer affordable export for markets to the north and across the Southern Atlantic.

“I look at southern Africa as part of our local market. Export for me is central Africa and above. We have a few customers in northern Africa and Europe that we supply from South Africa because

of our cost of production. That is a market we want to grow but again, we need the capacity before we enter those markets.

There is massive potential in Brazil – we have all the contacts, but we are unable to approach because we would need more machinery,” says Teubes.

Of course, Wirquin will also focus on strengthening relations with its existing clients where it has created lasting partnerships over its 15 years in South Africa. This is paramount for Teubes who is keen on making the most out of the market while the company waits for the green light on expansion.

“I wish we could attack new markets and new customer groups but with our production and warehousing constraints we are in a Catch 22 situation. If we get new customers, we won’t be able to deliver service and we’ll lose them. We are trying to focus

WIRQUIN SA

on our existing customer base and start utilising that market more,” he says.

And the reason these customers keep coming back? It’s all to do with quality. Wirquin designs its products to be time, money and space saving, high performing, hygienic and reliable. This aids the company’s growth significantly.

“Quality plays a massive role, and with us producing more parts locally – importing from our sister companies less – our costs are lower and that helps our pricing structures to be more competitive too. Combine that with overall customer service, these are the things that are assisting us with our growth,” explains Teubes.

POSITIVE FLOW With many home builders, developers, and construction firms reporting extreme pressure in the market, it’s important for businesses to remain upbeat. The vast swathes of negativity coming through the media are enough to make anyone feel challenged, but Teubes isn’t buying into a short-term vision for South Africa.

“You have to be positive. If you allow the world to get you down, you will never ever succeed.

“We try and instil into the team to not look at the market conditions,” he continues. “We believe in what we’re doing, we believe in our product, and we believe we will grow.

I believe the South African market is going to turn; unfortunately, we are at the end of the building cycle.

If we are lucky and nothing happens in the next three months with the

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government, I’m expecting major investments in the building industry in the first quarter of 2020 and we will start seeing some of that spin off at the end of 2020, and that means 2021 should show strong growth.”

Even in a market that has been very weak for Wirquin, the expectation - and hope – is that the upswing is coming.

“The DIY market will recover but people don’t have disposable income to spend. If there are major investments and the entire economy starts turning, I think 2021 and 2022 should show improvements in that sector,” says Teubes.

Wirquin is not a company about to be swallowed up by a changing marketplace and an unpredictable economy. This is a business that has seen it all before. When Wirquin’s local facilities are expanded, expect this

industry leader to boom.

“There is not another local manufacturer that competes on quality,” says Teubes. “We do have strong European opposition that are in South Africa. All of their products are imported directly from Europe. They are strong here but we have the advantage of manufacturing locally and that is why we are trying to drive volumes here, relying on imports less. The exchange rate has a big impact on the economy and local manufacturing helps us. Other local manufacturers are not investing like we are,” he concludes.

WWW.WIRQUIN.CO.ZA

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DUBE TRADEPORT

Everyone Agrees:

Dube TradePort Is the King of SEZs PRODUCTION: Timothy Reeder

A world-class development, Dube TradePort Special Economic Zone (SEZ) offers globally integrated logistics and manufacturing infrastructure and support for the full extent of airport-related activities. President Cyril Ramaphosa has heralded South Africa’s SEZs as key to the country’s international investment drive, and with a 50-year masterplan behind it this Aerotropolis is gaining significant ground. www.enterprise-africa.net / 113

INDUSTRY FOCUS: INFRASTRUCTURE

//

Owned by the KwaZulu-Natal Provincial Government, Dube TradePort is the province’s flagship infrastructural development and its chief priority. Its importance is in large part due to its role in supporting South Africa’s National Infrastructure Plan, an initiative which, “intends to transform South Africa’s economic landscape while simultaneously creating significant numbers of new jobs, and to strengthen the delivery of basic services.”

Uniquely and strategically located on the east coast of South Africa, at the intersection of local and global intermodal transport routes, Dube TradePort is linked to two of Africa’s major seaports and major national roads, and also home to King Shaka International Airport. This allows it to take care of cargo operations,

warehousing and agriculture, while presenting a suite of commercial realestate for office, retail and hospitality.

“The benefits offered to businesses operating within the Special Economic Zone are geared towards promoting business growth, revenue generation, employment creation, the export of value-added commodities and the attraction of both foreign and local investment,” says Dube Tradeport, “all enhancing South Africa’s manufacturing and export capabilities.”

MASTERPLAN Dube TradePort has grown into one the top ten investment opportunities in South Africa. Located within a developing ‘aerotropolis’ around King Shaka International Airport and the burgeoning KZN North Coast, it is rapidly emerging as a vital global

supply link and trade centre for KwaZulu-Natal. “Dube TradePort is a 50-year master-planned airfreight and passenger hub,” says the entity of its lofty aims.

Made up of five business zones, the SEZ is arguably dominated by Dube TradeZone, a prime, fully-serviced industrial precinct of 77 hectares and set to grow to 300 ha. It is equipped for electronics, pharmaceuticals and aerospace manufacturing, assembling and distribution.

Dube Cargo Terminal, meanwhile, provides a state-of-the-art cargo handling facility with digital tracking, and Dube AgriZone, an advanced agricultural precinct, possesses worldclass facilities and technical support for horticultural products through an efficient supply chain. Dube City showcases a 12-hectare premium

Inspiration, Innovation, Integration Bidvest Facilities Management, previously known as Total Facilities Management Company (TFMC), was initially formed in 2000.

In 2012 TFMC was acquired by the Bidvest Group and in 2015 underwent a branding and name change and now forms part of the Bidvest Services Cluster. We have a national footprint of 12 regional offices and 33 satellite offices country wide to service the far-reaching needs of our clients.

We perform a dual function within the facilities services cluster, namely, technical and engineering services which is our core competence and is unrivalled within the facilities management sector in South Africa, and the second extremely important function is to perform the role as the integrator of total facilities management and/or bundled soft services. The benefit of our integrated approach is that we can offer our current and prospective clients a single point of contact for client directed customisable service offerings, instead of clients managing multiple single line services. We are in an enviable position as we are able to draw on our sister companies to bundle best in class solutions from well renowned soft services companies and they in themselves are class leaders in their specific disciplines, such as cleaning, hygiene, pest control, catering, etc.

Our core technical and engineering capability can be described as follows: • • • • • • • •

HVAC systems – design and maintenance Electrical distribution and reticulation systems (generators / UPS / lightning protection etc.)

Fire protection and detection systems Security and access control systems Building fabric maintenance and infrastructure Specialised plant, equipment and infrastructure Utility, energy and sustainability management Project management

Apart from self-performing over 80% of our technical services, we pride ourselves on being an innovative, technology led business which is one of our major objectives as an organisation moving forward. At the core of our belief is ensuring we drive customer centricity, and continuously strive for consistent service excellence. We are a proudly South African organisation with an enviable Level 1 B-BBEE rating and we are confident that given an opportunity we will be able to deliver comprehensive facilities solutions at a highly competitive rates. Let us take care of your facilities management while you focus on your core business!

114 / www.enterprise-africa.net

DUBE TRADEPORT

// WE AIM TO BE THE LEADING GLOBAL MANUFACTURING AND AIR LOGISTICS PLATFORM IN SOUTHERN AFRICA // business and hospitality precinct, while Dube iConnect is a cutting-edge telecommunications platform and premier cloud service provider to the Dube TradePort precinct.

“We aim to be the leading global manufacturing and air logistics platform in Southern Africa, seamlessly integrated with inter-modal road, rail and port infrastructure,” is Dube TradePort’s

overarching plan. “Our mission is to enable the development of an aerotropolis to attract and sustain investment through the creation and operation of a special economic zone and to grow business and trade through enabling new regional and international air services.”

The ground-breaking, 50-year Durban Aerotropolis Master Plan, designed to create an all new and extensive urban environment around King Shaka International Airport, was unveiled in September. “This is a purpose-built airport city,” Ms Nomusa Dube-Ncube, Provincial MEC for Economic Development, Tourism and Environmental Affairs, pronounced, “which aims to make KwaZulu-Natal more economically efficient, sustainable and attractive to investment.”

MARA PHONE PLANT President Cyril Ramaphosa spoke of the importance of SEZs to South Africa’s overall push for international investment at the opening of the Mara Group’s hi-tech smartphone manufacturing plant last month.

Lauding the investment in Dube TradePort, Ramaphosa said it was a milestone in SA’s drive to be a producer of advanced goods.

“Dube TradePort provides valuable insight into how a SEZ should work in real life,” he effused. “It enables us to appreciate the immense transformative potential of these zones for our economy. SEZs are important instruments to attract both domestic and international investment, building targeted industrial capabilities and establishing new industrial hubs.

“We are fortunate that we have

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INDUSTRY FOCUS: INFRASTRUCTURE

Dube TradeZone - Aerial 1

established a SEZ here in an existing metro, where all the facilities and capabilities are in place, and it is here that Mara has found fertile ground to establish this factory.”

Ramaphosa went on to describe the R3.2 billion in private sector investment and 12,000 job opportunities Dube TradePort had created in its first phase; this figure does not even include the Mara

Group’s R1.5 billion investment into SA’s first fully-fledged smartphone manufacturing plant.

Such is the integral role of SEZs in the South African economy that they are now to be found in provinces across the country. Many of these are longer established, such as Coega SEZ in Port Elizabeth, as well as the East London and Richards Bay SEZs. Together with Dube TradePort, other

// DUBE TRADEPORT PROVIDES VALUABLE INSIGHT INTO HOW A SEZ SHOULD WORK IN REAL LIFE. IT ENABLES US TO APPRECIATE THE IMMENSE TRANSFORMATIVE POTENTIAL OF THESE ZONES FOR OUR ECONOMY // 116 / www.enterprise-africa.net

newer SEZs include Atlantis and Saldanha Bay in the Western Cape, and potential abounds for more like the long-planned site near OR Tambo International Airport.

Mara Phones South Africa within Dube TradePort Special Economic Zone will employ almost 1500 people, and has the manufacturing capacity to produce 1.2 million units annually. “We have delivered on our commitment to open a smartphone factory in SA,” Mara Group CEO Ashish Thakkar said at the ceremony.

“This represents the Mara Group’s first foray into the country and the first fully-fledged smartphone manufacturing plant that will produce high quality but affordable smartphones locally.”

DUBE TRADEPORT

STATE-OF-THE-ART INCUBATION HUB Cisco South Africa brought further cause for celebration in April with the launch of an R10 million stateof-the-art Incubation Hub in Durban, KwaZulu-Natal. The second facility of its kind built by the company in South Africa, it aims to develop SMMEs and speed up their entry into the digital marketplace. SMMEs will be able to connect with global Cisco experts, who can support them develop business ideas and concepts in a digital world.

“As the government, we acknowledge that in order to secure the future prosperity of this nation we need to take advantage of the rapid technological changes, taking place around the globe,” recognised

KZN MEC for Economic Development, Tourism and Environmental Affairs Sihle Zikalala.

“We welcome the establishment of the Cisco Edge Incubation Centre, here within the Dube TradePort Special Economic Zone, and see it playing an important role in developing our people’s capabilities in the areas of technology and innovation. We hope it will be amongst the catalysts which will promote the growth of a thriving knowledge economy.”

Dube TradePort CEO Hamish Erskine closed with his thoughts on both the development’s immediate likely influence, as well as its importance to the visions for the wider Aerotropolis masterplan. “We foresee the Cisco Edge Incubation Center

having a huge impact on developing local business and entrepreneurs throughout the province of KwaZuluNatal,” Erskine propounded, “enabling them to build their capacity to compete on a global stage.

“The facility will also be one of the cornerstones of the knowledgeintensive firms that include an innovation centre, BPOs and research facilities,” he surmised. “We look forward to bringing these into the Dube City precinct over the next 10 years as we develop the core of what will become a smart city around the King Shaka International Airport.”

WWW.DUBETRADEPORT.CO.ZA

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EXPERIAN SA

Acquisition to Improve

Financial Inclusion

Across sub-Saharan Africa PRODUCTION: Karl Pietersen

Following its acquisition of Compuscan, Experian is targeting growth across southern Africa, with a target of improving financial inclusion by helping financial institutions to understand more about their markets, and end-consumers to understand more about credit. “It’s the largest acquisition for Experian this financial year and that shows that we are growing rapidly and giving a significant contribution to our Experian shareholders,” Experian SA CCO Mark Wells tells Enterprise Africa.

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INDUSTRY FOCUS: FINANCE

//

“We’re in a world where technology can disrupt businesses,” said Experian Group CFO, Lloyd Pitchford at the company’s results presentation in May. And he meant it in a truly global sense. All markets around the world are being disrupted by new technologies, whether it’s developed markets like the USA, or growing economies like South Africa.

In SA, Experian’s appetite for growth through technological innovation is just as fierce as in any other global market.

Ultimately, the goal of this financial data analytics and credit bureau business is to help people and organisations to assess, predict, plan and protect themselves. Technology has become an integral part of this offering, and its influence is only set to increase.

By investing in major acquisitions, and growing its product portfolio, Experian is fixed firmly on the growth path, and is helping more and more people and organisations to improve their understanding of, and access to, financial services, while at the same time helping lenders to understand market opportunities.

In May, Experian SA completed the acquisition of Compuscan and

// COMPUSCAN HAS A FOOTPRINT WITH LOCAL RELATIONSHIPS, KNOWLEDGE AND DATA, AND EXPERIAN HAD A DESIRE TO BEGIN TO PROVIDE MORE FINANCIAL SERVICES AND CREDIT OFFERINGS ON THE CONTINENT // 120 / www.enterprise-africa.net

Scoresharp to create an African powerhouse with industry-leading technology and unrivalled reach.

Experian SA Chief Customer Officer, Mark Wells talks to Enterprise Africa about how the deal is boosting financial inclusion and helping to bring more people into the credit economy.

“The acquisition was seen as a strategic opportunity for growth globally,” he says. “While it happened on our continent and in our market, it was something that had a lot of attention from the Group CEO and investment board – it was a big deal for Experian as a global entity. The reason for that is the reason we chose to buy Compuscan – our ambition to expand into subSaharan Africa.

“Previously, Experian had done quite a lot of narrow scope work in Africa – assisting certain financial institutions in the likes of Malawi and Botswana with regulatory analytics work – but that was an on-demand, reactive thing. If you look at the footprint of Experian across the globe, other than South Africa, the African continent is relatively untouched. Enter Compuscan which was a SA-born start-up business that had grown into a medium-sized business with the mission of expanding across sub-Saharan Africa.

“Compuscan had put down a footprint as a credit bureau and analytics services business across five other African countries and had begun to make great inroads in those markets.

What they didn’t have was the capital investments and the ability to grow at scale, so it seemed like a perfect marriage and that is exactly what is has turned out to be. Compuscan has a footprint with local relationships, knowledge and data, and Experian had a desire to begin to provide more financial services and credit offerings on the continent.”

Compuscan’s footprint spans South Africa, Namibia, Botswana, Uganda, Ethiopia, Mozambique and Lesotho.

Scoresharp has been a wholly owned subsidiary of Compuscan since 2007 but

// ON THE AFRICAN CONTINENT, WE UNDERSTAND THAT THE COMPUSCAN ACQUISITION IS MOST DEFINITELY THE START OF A GROWTH STRATEGY // has always been branded as an analytics organisation that was independent of a specific bureau. Its expertise comes in the form of a unique ability to take the best of data and interpret it in credit risk decisions to give the best possible outcome for a credit lender.

The result of the acquisition was a doubling of the employee base, an expansion of the product and service portfolio, and access to knowledge and data across important new markets, furthering Experian’s global footprint.

The success of the merge has been down to blending the two organisations strengths and weaknesses.

“It’s been an incredibly positive thing,” says Wells. “The businesses are very complimentary. We’ve had very little overlap in terms of customer penetration and customer services.

Compuscan had traditionally built its business on the microlending sector and their main source of income and service provision is to approximately 3000 microlenders in South Africa, extending across its other markets.

Experian has always been very focused on providing services to financial institutions - tier one banking, telcos, retail etc. We also had quite a different array of services so while there is an overlap in terms of the consumer credit bureau, Compuscan had a more mature analytics offering and Experian had a more mature commercial credit bureau as well as enterprise-class software and fraud offerings.

“Each of the individual business had

EXPERIAN SA

areas that we were strong in and areas that we were less strong in but in this acquisition, the reason that Compuscan was such a good target for us is that we were strong where the other was weak and vice versa. By putting the two organisations together, the value proposition on both sides has improved.”

R120 MILLION INVESTMENT A prerequisite of the acquisition, instilled by the Competition Commission, was that Experian must invest in South Africa. Happy to oblige, Experian announced it would invest R120 million into new technological enhancements, establishing South Africa as an investment hub.

The two key focus areas for this investment are moving the business onto a global cloud-based reference architecture, in line with international best-in-class, and adopting a new service model to remain compliant with the various legislations active across different territories.

“We took two parallel and separate running credit bureaus and we wanted to move to a much more agile architecture as we merged the data assets with the technology that serves customers. The first part of the investment is around moving to best-of-breed technology – a reference architecture based on cloud that would allow a much more agile service. It’s the reference architecture that Experian is using globally and is starting to roll out in other parts of the world. It’s beneficial for the African continent as, when products are developed on top of the credit bureau, if we are using the same reference architecture and structure in a cloud environment, our time to market bringing new products to African customers will be that much quicker,” says Wells.

The second part of the investment is what Experian terms ‘the hub and spoke services model’. “Legislation in each country is different with regards to data protection, data privacy and

storing data in country or allowing data to be stored in a central place. While we’re looking to remain absolutely compliant with those laws, where we can get economies of scale using a shared services model in this cloud infrastructure, we are looking to be able to service African countries from a central place where it is possible. Where data has to be stored in country, we would look to make those investments into reference architecture in those countries,” details Wells.

GELEZAR Another technological advancement, which looks set to have a real tangible impact on South African consumers and businesses, comes with the launch of Experian’s GeleZAR app. The company describes the app as a continuation in the fight against financial exclusion.

GeleZAR, which will be available from the app store once pilot testing is complete, is an educational tool which is aimed at the unbanked population, outside of the formal credit economy.

This is a large market, and one which many companies have tried to exploit over the years.

Wells insists that by helping consumers to understand more about credit, credit bureaus, financial services, and credit profiles, they can make better use of the data that is held about them and, potentially, unlock new opportunities in the formal credit sector.

“Firstly, we want to provide financial education to consumers as well as small and medium enterprises,” he says. “The app is targeted towards the unbanked sector of society and allows them to educate themselves on basic principles such as budgeting and how to handle

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money. It then takes those consumers on a journey to help them understand about credit and what a credit score is. It helps previously unbanked consumers from the credit economy to start understanding how they could unlock access to financing and build a credit profile that will create opportunities for them in their daily life.”

The app will also offer benefits to the country’s lenders. By using the app, consumers will offer up information about themselves as the technology will pull relevant data from the cell phone. This information can be used

by Experian to create an alternative profile of a person – extremely useful in a market where only around 52% of people have access to credit. Banks and other lenders are keen on gaining this type of information so that they can understand more about the market and its potential.

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“We ask consumers for consent to provide us with certain data that they store on their smart phones,” says Wells.

“We have found that if we are able to gain access to smart phone data, specifically for people that do not have a credit profile, that data provides us with an ability to build an alternative credit score which we have found to be quite predictive. We have piloted this is Brazil and in parts of Indonesia and we are using some of the algorithms they have developed. We have proven a correlation between traditional data and mobile scraping data, and it allows us to accelerate consumers ability to access credit. If we are given consent by consumers, with the intent to build an alternative credit profile, we can go to financial institutions looking to lend to that segment and give them a view of those consumers where they may not have had data before.”

This idea holds potential for the wider sub-Saharan African region.

Sub-Saharan Africa is projected to have 500 million smartphone subscribers by 2020 and a large portion of society remains unbanked and outside of the transitional credit economy.

“We are in a pilot phase right now, we have partnered with a number of financial institutions and one of the largest low-cost mobile phone retailers in Africa, and they have preloaded the app on phones. We are testing the algorithms and tweaking them specifically for the South African market,” says Wells.

“We’re in the early stages but it’s something we are very excited about because we’ve seen success in other parts of the world in developing alternative credit scores. In the rest of the sub-Saharan African market, 80-90% of the market isn’t part of the credit

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INDUSTRY FOCUS: FINANCE

economy and doesn’t have a data set that services a traditional credit bureau,” he adds.

Constantly adding to, and improving, the data available – and aggregating that data in a speedy and discernible manner – is a core capability for Experian, which is why it continues to develop new tools to access more data, even from mature credit markets.

In the USA, a new tool that encourages consumers to offer up extra data – data that might not be included in a traditional credit report – has helped to improve credit scores almost instantly. Experian Boost has seen such success, the company is already planning roll out in the UK and other mature markets.

“It’s a consumer service that has been launched, calling on consumers to contribute their data that isn’t

traditionally stored with the intent of immediately boosting their credit score,” says Wells. “It’s at the other end of the spectrum from the GeleZAR app but it’s part of the same story – consumers have data that is valuable and they can make that data work for them, continuing to enhance their ability to access financial services and credit.

“In a live environment, as they submit data, in an open banking way, they will see their credit score improve so they have benefits from the lenders they use.

“We’ve had a massive uptake in the US with Experian Boost and so the company is now looking to roll out globally. It is a product which is aimed more at people who understand their credit score. Again, it’s about how do they own their own data and make it work for them,” he adds.

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124 / www.enterprise-africa.net

INVESTING IN GROWTH The growth of the product portfolio and the delivery of new services coming out of Experian make for an extremely exciting international business, and the fact that the end goal is improved financial inclusion helps to list this business among one of the most important in the region.

But, even with a fantastic reputation, Experian remains hungry for further growth. Wells says that further acquisitions, mergers, partnerships and joint ventures are already being considered.

He says that there is certainly a feeling that local is best and, taking from the Compuscan lead, developing local knowledge is the way to go.

“This idea lends itself to M&A activity,” he adds. “We don’t have any specific targets at this stage as we are still looking to bed this acquisition down and enhance our services to those countries where we already have a presence.

In the very near future, we will start to identify opportunities in other markets that would be able to benefit from the same types of services that an ExperianCompuscan merger has already brought to markets where it is active.”

Of course, one of the major hurdles to any investment or growth strategy is the strength of the local and global economy.

South Africa has faced a weak economic climate for some time and the global economy is characterised by unpredictable choices.

But, in difficult times, Experian provides data insights to assist with the best possible decisions.

Its knowledge, data, and analytical ability give lenders a much clearer picture of the market, and this can help reduce risk.

“Our industry specifically is not immune to local economy pressure

EXPERIAN SA

// ULTIMATELY, THE SERVICES WE ARE LOOKING TO PROVIDE SURROUND HOW WE CAN GAIN MORE APPROVALS FOR FINANCIAL SERVICES CREDIT GRANTING THAN WE HAVE TODAY` // but what we have found, especially in South Africa, is that as pressure comes on to our client base, around credit provision, they become more risk averse. As they become more

risk averse in their practices, they have an increased hunger for data and interpretation of that data so they can glean insights out of that data. This is where our value proposition sits,” Wells explains.

“While our customers are always very cost-conscious and looking to drive pricing down, we have seen an increased demand for closer relationships and they are asking us for additional insights that can assist them in unlocking new markets in a relatively risk averse way. That spawns new opportunities for us so I wouldn’t say we operate without impact from the economy but it does drive customers to expand their relationships with us as they look to minimise pressure and reduce losses by not taking too many risky decisions.”

RISKY FUTURE? With the Compuscan acquisition now complete, and Experian in a position to provide more data insights than ever before, the future looks bright.

But there is one unknown hanging over the financial services industry – the looming National Credit Amendment Bill. Informally known as the ‘debt relief bill’, this piece of national legislation is designed to help those with serious debt problems. Specifically, individuals could be allowed to apply for relief and their debt could be suspended, partially or in full, for up to 24 months. Ultimately, if circumstances do not improve, debt could be terminated.

The bill has been signed into law by President Ramaphosa and the big banks are concerned. Experian is

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INDUSTRY FOCUS: FINANCE

// WE HAVE FOUND THAT IF WE ARE ABLE TO GAIN ACCESS TO SMART PHONE DATA, SPECIFICALLY FOR PEOPLE THAT DO NOT HAVE A CREDIT PROFILE, THAT DATA PROVIDES US WITH AN ABILITY TO BUILD AN ALTERNATIVE CREDIT SCORE WHICH WE HAVE FOUND TO BE QUITE PREDICTIVE //

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waiting to realise the full impact.

“From an Experian perspective, it provides us with a certain amount of work to do but also with opportunities,” says Wells. “We are obligated, once the debt relief bill is legislated, to create an identifier in the bureau that can recognise individuals that have applied for debt relief. The opportunity comes as each and every one of our banking and lending customers are interested in the exposure that they have to consumers that may apply for debt relief. They are coming to us and asking if we can assist them with making sure they understand their exposure and they understand the potential losses that they may experience based on people applying for debt relief.

“What we are not yet clear on

is how our customers will respond,” he adds. “Will they become more risk averse and cut down on lending to consumers who have applied for debt relief or will they see it is an opportunity to service the market as others withdraw?

It will be interesting, and our perception is that it doesn’t affect Experian’s business other than the development that we need to do on the bureau.”

South Africa’s Banking Association has made it clear that it does not support striking off debt in any form. Various analysts have suggested that SA banks could suffer losses of up to R25 billion.

But Experian would not be directly impacted – the company does not lend money and is purely a custodian of data.

EXPERIAN SA

“It enables us to provide an additional service by identifying individuals that may qualify for debt relief, and that information is valuable for our customers as they can gain an enriched story about who they are lending to.”

For Experian, locally and globally, it is important for financial institutions to seek data insights in order to grow their businesses.

Experian’s large amount of expertly aggregated data is invaluable in situations like this. The company has cleverly positioned itself as an organisation that financial institutions can truly partner with and derive benefit from.

With an ever-growing middle class around southern Africa, and a desire within financial institutions to lend to more people and grow

presence, now is the perfect time for Experian to go out and stake its claim as the African partner of choice – backed by international expertise – for both businesses and endconsumers looking to improve their access to the formal credit economy.

“Ultimately, the services we are looking to provide surround how we can gain more approvals for financial services credit granting than we have today. The organisations that are our customers have exactly the same objective. In order for them to do that, they need to be able to assess the risk, and in order for them to do that, they need insights to make informed decisions,” says Wells.

“We need to provide as much data as we possibly can both in traditional credit form as well as in alternative data form so that we can inform those

organisations whether someone is credit risk or not,” he concludes.

Technology is changing the landscape for this important sector and this vital company. Fortunately, Experian is an industry-leader and its position is secured by an ongoing enthusiasm for innovation and improvement.

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TAKEALOT

Customer Care Is Key to

Takealot e-Dominance PRODUCTION: Timothy Reeder

“Takealot.com’s mission is to be the most customer-centric online shopping destination in Africa.” This is Takealot in a nutshell, and the e-commerce giant has laid immovable foundations based on a simple concept: the customer comes first.

Constant new initiatives, excellent rewards programmes and superlative customer service combine to grow and retain a loyal consumer base, even as other major players awaken to the possibilities the country has in the online retail space. www.enterprise-africa.net / 129

INDUSTRY FOCUS: RETAIL

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Takealot.com was officially launched in June 2011, when the very concept of online shopping was still entirely in its infancy in South Africa. Its establishment followed the successful acquisition of an existing e-commerce business - Take2 - by the US-based investment firm, Tiger Global Management and Kim Reid in October 2010, and today, takealot.com is SA’s leading e-commerce retailer and one of the largest, most innovative e-commerce retailers on the whole African continent.

“The business was initiated with a simple vision in mind: To be the largest, simplest, most customercentric online shopping destination in Africa.” Takealot’s starting mission was a familiar one, but one from which it has never strayed and, as a result, it has rapidly evolved since inception to open and expand warehouses in Johannesburg, Durban and Cape Town. Department selection has experienced a similar blossoming, to now include over 21 across Electronics, Lifestyle, Media and Gaming, and Fashion.

“Our business is retail, and we strive to have the widest range of

// WE UNDERSTAND THAT CUSTOMERS PREFER ALTERNATIVES TO DELIVERY AND HAVING SPECIFIED LOCATIONS FOR BOTH COLLECTION AND RETURNS AT A TIME CONVENIENT FOR THEM IS AN ADDED BENEFIT // 130 / www.enterprise-africa.net

products and the best possible customer service on the African continent,” Takealot lays bare. “We’re doing it by employing great people and developing innovative, cuttingedge tech.”

GROWTH AND DIVERSIFICATION In a comparatively brief history, the Takealot story has been marked with frequent important milestones. 2014 was a truly pivotal year, as it heralded firstly a $100m investment from Tiger Global, quickly followed by the purchase of Mr Delivery. This was vital in giving the then fairly nascent business ownership and control over its own logistics network, through the Takealot Delivery Team division and its own app-based on-demand food delivery service through the MR D Food division.

2014 continued with the successful acquisition of Superbalist. com, a curated design and fashion website, and culminated in the announcement that Naspers-owned Kalahari.com was to merge businesses with takealot.com. The completion of the merger served to build the premier online shopping destination in Africa, with all Kalahari customer accounts successfully transferred over at the beginning of May 2015.

Naspers then increased its investment in takealot.com to 96% at the start of 2018. A global internet group and one of the largest technology investors in the world, in its own words, Naspers sets out to, “build leading companies that empower people and enrich communities.” Later on in 2018 two other members of the Naspers family, Superbalist.com and Spree, merged to provide customers with the latest ontrend local and international fashion.

“We believe in the power of local backed by global scale,” Naspers says, “and we look for opportunities to address big societal needs in markets where we see the greatest growth potential.”

E-COMMERCE EXPLOSION With a population of 55.5 million, South Africa has a 54% internet penetration total, with a substantial middle class and perhaps the best cross-border potential of any African country. This is integral to making it such a lucrative prospect for online retailers and merchants, and has entailed a sizeable explosion of e-commerce in the country in very recent years.

Back in 2018, fin24 reported what was being roundly identified as a, “massive growth opportunity in the digital commerce sector,” with e-commerce estimated to have amounted to some R10bn during the previous year, according to Geraldine Mitchley, Visa senior director for digital solutions in sub-Sahara Africa.

The growth was powered by high mobile penetration, rising consumer confidence in online transactions and the expansion of retailers into the online sphere by adopting a multichannel approach. The lack of physical retail infrastructure in most of Africa has created a favourable environment for cross-border e-commerce. “Local internet retailers are modifying channels to be able to add more value for their consumer base.

They are simplifying and improving accessibility and offering more benefits,” Mitchley delineated.

“Companies are eagerly implementing a variety of digital initiatives to transform the customer experience, and the digital agenda is top of mind for retailers. Our research showed customers want speed, simplicity and they want the process to be safe.

“The SA internet retail market is in its infancy by global standards, but even so, retail players are increasingly operating on omni channels,” she explained.

E-commerce growth has continued to outstrip even the most optimistic forecasts ever since, with BusinessTech telling at the beginning of 2019 of the

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92 million litres of fuel

INDUSTRY FOCUS: RETAIL

more than R14 billion that online retail had generated last year according to World Wide Worx’s Online Retail in South Africa study. The 2018 figure represented 25% growth over 2017 and came as something of a surprise, given the widespread predictions that online retail growth would slow down to below 20% by 2018.

Forecasts have been beaten as a result of massive investments in online retail, aggressive marketing, and the rapid uptake of new shopping channels like mobile shopping

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and Instagram. “Furthermore, most established online retailers have enhanced their digital presence and refined their fulfilment models,” World Wide Worx explained, “while many traditional retailers are starting to see significant growth in their online offerings. It is not unusual to see growth rates of between 25% and 50% reported by individual online retailers.”

ALL ABOUT THE CUSTOMER Takealot knows that if it wants to keep its spot as the number one choice in Such Africa’s goldmine of an e-commerce market, it has to make its customers feel valued, safe and well-served. “We are all about our customers,” Takealot effuses. “We want to be the most customer-centric online shopping destination in Africa – to make online shopping so easy and seamless that everyone will feel comfortable doing it.

“We want to know our customers.

We want to be a part of their lives. We want each experience they have with us to leave them with a smile, whether it’s a confirmation email, an added detail on the packaging or even the return of an unwanted or damaged order.” A key aspect of retaining customer loyalty and earning the invaluable recommendations which help expand a consumer base has been Takealot’s implementation of eBucks Rewards.

Originally launched in October 2000 as a FirstRand Group e-commerce initiative, today eBucks Rewards is one of South Africa’s most aspirational rewards programmes, focused on delivering real and meaningful value to partners and members alike. FNB and RMB Private Bank’s programme enables buyers to earn eBucks for everyday tasks, like online, shopping, which can then be spent on fuel, electronics and appliances, travel, books, CDs

TAKEALOT

// WE WANT TO BE THE MOST CUSTOMER-CENTRIC ONLINE SHOPPING DESTINATION IN AFRICA // and DVDs - pretty much anything imaginable. “With eBucks Rewards you save money every time you spend,” is the core concept. “This means you can do more and get more for less.”

In April this year, Takealot sought to fine-tune the customer experience by one more degree through the opening of 25 collection points, dotted across South Africa. The Takealot Pickup Points provide an ideal alternative to having an order delivered to the home or office, and include 14 in Gauteng. The flagship in Midrand spans the busiest highway in Africa and uses a mix of technology and automation to ensure shoppers are able to collect as quickly as possible.

“We understand that customers prefer alternatives to delivery and having specified locations for both

collection and returns at a time convenient for them is an added benefit,” explains CEO Kim Reid. “We are expecting these to add value to our customers and our business.

They will shorten delivery leadtimes and add another dimension of customer convenience.”

Reid told MyBroadband that such was his faith in what Takealot is doing, even potential competition from Amazon or Alibaba entering the South African e-commerce space does not unduly trouble him. While recognising the power of these colossuses, he also underlined Takealot’s huge advantage by being on home turf. “If you look at what is happening in India today, Walmart has bought out Flipkart and it is competing head-to-head with Amazon,” said Reid. “There is no reason

why you cannot compete against Amazon and Alibaba.”

After all, having been in on the ground floor with South Africa’s embrace of the power of online retail, it will take a lot to shift it from its perch. “Now, takealot.com is South Africa’s largest, most innovative e-commerce retailer, with over 2000 employees,” it hammers home. “At the core of everything we do is our customer. We are passionate about providing great customer experiences […] until the product you order is delivered safely into your hands.”

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EXHIBITION CALENDAR

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

IFE FRANCHISE EXPO NOV 01 - 02 | JOHANNESBURG The IFE Franchise Expo hosted in South Africa is launching the Franchise Indaba Virtual Webinar and Expo focused on skills development, entrepreneurship and how to buy or start a franchise business. The Franchise Indaba Virtual Webinar and Expo brings together the franchise industry offering visitors workshops and educational seminars for people wanting to join the franchise industry. This event will also showcase franchise opportunities where you can speak to industry experts, franchise business owners and people who work within the industry. This event is organised by FASA. AFRICACOM NOV 12 - 14 | CAPE TOWN AfricaCom is the place to meet everybody who’s anybody in African telecoms and technology; bringing together 15,000 attendees, 450 speakers and 500 exhibitors.

Whether your focus is connectivity infrastructure, disruptive technologies, digital services or ICT strategy, this is the place to network, learn and get deals done.

AfricaCom is co-located with both Mission Critical Technologies Africa, an event dedicated to critical connectivity,

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and Video Exchange Africa, an event focused on video distribution and content strategy.

AFRICAN AIR EXPO NOV 27 - 29 | DURBAN The African Air Expo brings together major players within the aviation industry, enabling a demanding clientele to discover the industry’s latest developments and innovations in a remarkable and convenient location.

African Air Expo will attract key aviation industry players to discover first-hand the range of new technologies and solutions that the industry has to offer. The African Air Expo is an ideal platform to discover the latest technologies and learn about emerging trends and networking with key decision makers and get first-hand knowledge about the industry’s present and future growth.

South Africa has cemented itself within the Aviation Industry, making it the perfect location to promote and grow your business by connecting with some of the region’s top decision makers. Exhibit at African Air Expo to take advantage of the ever-growing aviation industry within South Africa, as business and industry networking are the key goals when exhibiting at African Air Expo.

FRANCHISE BUSINESS FESTIVAL MALL OF AFRICA NOV 01 - 02 AFRICA OIL WEEK CAPE TOWN ICC NOV 04 - 10 AFRICA COM CAPE TOWN ICC NOV 12 - 14 WOPS (WORLD OF PLASTICS & RUBBER) SA GALLAGHER CONVENTION CENTRE NOV 12 - 15 AFRICAN AIR EXPO KING SHAKA INTERNATIONAL AIRPORT NOV 27 – 29 THE BIG 5 CONSTRUCT EAST AFRICA KENYETTA INTERNATIONAL CONFERENCE CENTRE NOV 07 – 09 AFRICA INDUSMACH – TANZANIA DIAMOND JUBILEE HALL – DAR ES SALAAM NOV 07 – 09 FOOD WEST AFRICA THE LANDMARK EVENTS CENTRE – LAGOS NOV 25 - 26 GHANA OIL AND GAS SUMMIT ACCRA INTERNATIONAL CONFERENCE CENTRE NOV 21 - 22

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