Enterprise Africa - December 2019

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

December 2019

www.enterprise-africa.net

Nomad Continues Movement Into Africa Exclusive interview with Owner Alex Rutherford

ALSO IN THIS ISSUE:

Heunis Steel / Broll / Travelstart / Sasol

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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

As we enter a time of year when celebrations are the norm, unfortunately there is not much to be happy about in the South African business sphere. The government continues to push for improved FDI and renewed positivity, but the reality is that SA Airways is in business rescue, PRASA is in administration, SABC is technically insolvent, Transnet senior management is like a merry go round, and Eskom is the laughable demonstration of how not to run a business.

State-owned entities are in disarray. What is encouraging foreign entities and funds to look to South Africa when the country’s state-owned companies look like this? And don’t forget the private organisations. Steinhoff, KPMG, Edcon, Group Five - all humiliated.

Fortunately, there are some businesses that continue to post positive results, invest in the country, act ethically, and achieve significant success while others fall away blaming the economic sloth that has, ironically, been fuelled by their negligence.

For Nomad Africa and Travelstart, times are tough but relentless focus on carefully crafted strategies have left both growing. For Heunis Steel and Broll, the same is true.

These have not had special treatment, yet they thrive.

“You have to be positive or you might as well pack up and go home; that is certainly not what we are doing,” says Travelstart MD, Jerome Touze.

The message here is that, clearly, there are opportunities and 2020 should be a year for excitement and not one to be feared.

Enterprise Africa explores the stories of businesses that are, instead of shying away and consolidating, investing in growth and laying building blocks for a stronger market in the future.

Enjoy Christmas and please contact us in the New Year to tell us why you are positive about prospects for 2020. We won’t be offline, find us on Twitter @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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INDUSTRY FOCUS: TRAVEL 06/NEWS: The News Snapshot A round up of some of the latest news stories from around the country

170/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors

9/NOMAD AFRICA ADVENTURE TOURS Nomad Continues Movement Into Africa 19/TRAVELSTART Africa’s Leading Travel Agency Soars Sky High After Acquisition 23/NETSHITUNI COACHES 35 Years Still Rolling in Limpopo INDUSTRY FOCUS: MANUFACTURING 28/HEUNIS STEEL Invest in Guaranteed Strength from Heunis 36/SA METAL GROUP 100 Strong Years and Counting…

41/ATLANTIS FOUNDRIES Combining Age-Old Arts With Constant Innovation 45/APEX CORDSET TECHNOLOGIES Staying Grounded While Powering Everyday Life 49/DEFY APPLIANCES Hot Investments Provide Perfect Recipe for Defy Success INDUSTRY FOCUS: PROPERTY 54/BROLL When The Going Gets Tough...

60/ANGOR PROPERTY SPECIALISTS ANGOR Remains Residential Hot Property

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CONTENTS

64/AFHCO Real Solutions to Johannesburg’s Housing Crisis

115/SASOL Sasol Enters Post-LCCP Build Era With New CEO

69/CENTURY PROPERTY DEVELOPMENTS Sustainable Property Development Done Properly

120/TANESCO Bringing Light and Growth Across Tanzania

INDUSTRY FOCUS: MINING 74/ANGLO AMERICAN PLATINUM Strong, Shining &Responsible 81/LETŠENG DIAMONDS Another Decade of Mining that Makes a Difference 85/FERMEL Making Mechanised Mining A Reality INDUSTRY FOCUS: INSURANCE 90/AMPLE INSURANCE BROKERS Short Term Insurance Made Personal 96/THATCH RISK ACCEPTANCES The Thatch Insurance Specialists INDUSTRY FOCUS: HEALTHCARE 101/NETCARE Healthy Netcare Continues Delivering Excellence INDUSTRY FOCUS: INFRASTRUCTURE 108/TRANSNET Rail & Port Investments to Drive SA Economic Growth

INDUSTRY FOCUS: CONSTRUCTION 126/CASHBUILD More Stores to Come for Cashbuild 135/MASSBUILD Building for the Future with New Store Concept INDUSTRY FOCUS: AGRICULTURE 140/ZAMBEEF Silver Jubilee for One of Zambia’s Meatiest 146/CARARA AGRO PROCESSING The Pick of the Pickle Bunch 150/BRITISH AMERICAN TOBACCO SA BAT Steps Up Diversification 156/TWO-A-DAY GROUP Growing Giant Remains Twice As Caring INDUSTRY FOCUS: AUTOMOTIVE 161/EQSTRA FLEET MANAGEMENT Fleet Partner of Choice 167/HUB PARKING TECHNOLOGY Total Parking Solution

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SAA PLACED UNDER BUSINESS RESCUE The Board of South African Airways (SAA) has adopted a resolution to place the company under business rescue.

“This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner,” said Public Enterprises Minister Pravin Gordhan.

The Minister announced government’s intention to introduce a radical restructuring process at SAA in order to ensure its financial and operational sustainability and in so doing reduce its ongoing impact on the fiscus.

“Our desire is that the restructured airline will mark the beginning of a new era in South African aviation and must be able to bring in millions more tourists into SA; help create more jobs in tourism and related sectors of the economy and work with other African airlines to underpin and service the integration of African markets and improve dramatically intra-African trade and travel,” Gordhan said.

He said it is important that the reliance on government finances be reduced as soon as possible and to minimize disruption to SAA services, customers, staff and other stakeholders.

“A business rescue practitioner will be chosen to take charge of the business and perform the function of operating the airline with the assistance of management. The practitioner will also undertake such rationalizations as are necessary.

“This set of actions should provide confidence to customers of SAA to continue to use the airline”.

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PROCTER & GAMBLE’S R300M INVESTMENT LAUDED Procter & Gamble have invested in a new R300 million sanitary pads manufacturing plant in Kempton Park, which has created 300 jobs. This has been welcomed by Deputy Minister of Trade and Industry, Nomalungelo Gina.

Gina said the commissioning of the new Always manufacturing facility, which is an additional line to the existing facility in Kempton Park, was a giant step forward.

The P&G investment was a testament to the company’s continuing and increasing investments into South Africa and the region.

“This investment demonstrates the commitment of P&G to continue to grow and contribute to the growth

of our country and region in addition to over R1 billion that has already been invested by P&G since 2009.

“We are seeing a new additional manufacturing facility being introduced for the Always sanitary pads, and we are also witnessing an additional line being added to the Pampers production line bringing the latest in the innovation and technology to South Africa,” she said.

“In demonstrating government’s commitment [to an inclusive economy], National Treasury this year announced zero VAT rate on sanitary pads which P&G advocated strongly for.”

The Deputy Minister was pleased to see the commitment of P&G to the empowerment of women and girls.

GDP DECREASES BY 0.6% The South African Gross Domestic Product (GDP) has decreased by 0.6% in the third quarter of 2019, StatisticianGeneral Risenga Maluleke has revealed.

“The economy of the country went into a 0.6% slump in the third quarter of 2019, while year-on-year it is sitting at 0.1%, and 0.3% at nine-months-onnine-months,” he said at a briefing.

Addressing reporters, Maluleke revealed that the mining and quarrying industry decreased by 6.1% and contributed -0,5% of a percentage point to GDP growth.

“During this period, a decreased production was reported in the mining of platinum group metals (PGMs), coal and iron ore,” he said.

Releasing the figures, Maluleke said the manufacturing industry decreased by 3.9% and contributed -0,5% of a percentage point to GDP growth.

The divisions that made the largest contributions to the decrease were basic iron and steel, non-ferrous

metal products, metal products and machinery; petroleum, chemical products, rubber and plastic products; and wood and wood products, paper, publishing and printing.

“In contrast, the trade, catering and accommodation industry increased by 2.6% and contributed 0.4% of a percentage point to GDP growth, largely as a result of positive growth in wholesale trade. Finance, real estate and business services increased by 1.6% and contributed 0.3 of a percentage point to the GDP growth,” said Maluleke.

In quarter three, general government services increased by 2.4%, mainly attributed to increased employment in provincial government and higher education institutions.

During this time, there was a R9.5 billion drawdown of inventories. Large decreases were reported for the manufacturing, trade and mining industries.

NEWS SNAPSHOT ESKOM GETS NEW GROUP CHIEF EXECUTIVE

Andre de Ruyter - Eskom CEO-designate

The Ministry of Public Enterprises has announced Andre de Ruyter as Eskom’s new group chief executive.

“I would like to thank de Ruyter for not only accepting this position at a difficult time for Eskom, but, given Eskom’s current financial situation, to also agreeing to a lower compensation package than the position currently pays,” Public Enterprises Minister Pravin Gordhan said in a statement.

De Ruyter, who is currently the CEO at Nampak, the continent’s largest packaging company, replaces former group chief executive Phakamani

Hadebe who left the entity at the end of July.

“As things stand, I am reassured that there is committed and capable leadership at Eskom in the Chief Financial Officer (Calib Cassim), the Chief Operating Officer (Jan Oberholder), the Group Executives for Generation, Transmission and Distribution (Bheki Nxumalo, Segomocco Scheppers and Monde Bala), the Group Executive for Human Capital (Ms Elsie Pule) amongst others, who have all been working tirelessly under the leadership of Mr Mabuza

over the past few months.

“I am confident that he will lead a committed and capable management team that will work with him and the Board to take Eskom forward,” the Minister said.

De Ruyter will commence his duties at Eskom on 15 January 2020.

The Minister said government is working to bring back the engineering skills and experience of competent and ethical professionals that have been lost to Eskom over the years due to state capture and other incidents of malfeasance.

MASTER PLAN TO ENSURE ENOUGH WATER FOR THE FUTURE Human Settlements, Water and Sanitation Minister, Lindiwe Sisulu, has unveiled the much-awaited National Water and Sanitation Master Plan, to ensure water security in the country.

Sisulu said that as the water and sanitation sector their job is to guarantee - not only for the short term but also for the very long term - the availability of water and to assure investors that South Africa is open for business.

“We also have to provide the same guarantee for our local businesses big and small, and our farmers. It is for that reason that we are launching this Master Plan,” Sisulu said.

While significant progress has been made in reducing the inequalities in the water sector, the country still has significant and unacceptable levels of inequality and poverty.

“There is not enough water for a country that is industrialised with a high population growth. The demand

simply outweighs the supply.

“To date, there are still over three million people without access to basic water supply services, while only 64% of households have access to reliable water supply.

With respect to the bulk water resources, on which the country depends, it is projected that demand will grow by 17% in 2030,” Sisulu said.

Public Works and Infrastructure Minister, Patricia de Lille, stressed the need to maintain ageing infrastructure while at the same time building new infrastructure.

“We need to look at the water leaks all over the country so that we don’t waste the resource,” De Lille said.

She said government will be investing in a number of water resource infrastructure projects, including, among others, the Lesotho Highland Water Project phase two, De Hoop Dam in Limpopo and Clanwilliam Dam.

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NOMAD AFRICA ADVENTURE TOURS

Nomad Continues

Movement Into Africa PRODUCTION: David Napier

In a changing tourism market, Nomad Africa Adventure Tours is looking to new territories for further growth opportunities. This South African road tripping business has been delighting tourists for more than 20 years and Owner Alex Rutherford is sure that more can be done, as long as pricing is sustainable. www.enterprise-africa.net / 9

INDUSTRY FOCUS: TOURISM

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The success of Africa’s tourism industry has been one constant across a decade which has been characterised by unpredictability, uncertainty, and volatility. In the past 10 years, South Africa has seen multiple recessions; the slow pace of domestic reforms has stifled economic growth in subSaharan Africa, and global economic uncertainty has seen some industries around Africa struggle to keep up.

But tourism has boomed. Africa now has the second fastest growing tourism market in the world as access has improved and development has continued. With major global attractions, and a unique offering for global visitors, African governments have looked to tourism to create jobs and drive wealth creation. And in many countries it has been working. Tourism business in Kenya is responsible for around 10% of GDP; in South Africa, it has been reported that tourism

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supports 1.5 million jobs; in Namibia, tourism contributes around 15% of GDP. More relaxed visa rules in Ethiopia have turned the country into a transport hub, growing by 48.6% in 2018 (according to the Jumia Africa Hospitality report).

In 2018, 67 million people visited Africa, a 7% increase on the previous year. This helped generate 8.1% of Africa’s GDP. Without doubt, tourism is a key contributor.

PRICE One man who has realised the amazing potential of this industry is Alex Rutherford, CEO and Founder of South Africa-based tour operator, Nomad Africa Adventure Tours (Nomad). The company shows tourists a real view of Africa, taking them off the beaten track en route to their destination, allowing immersion in local culture and community.

Rutherford established the

company in 1997, when African tourism was a whole different industry, and saw potential after travelling across Africa and witnessing the poor standards of hospitality on offer.

After 22 years, Nomad has become an industry leader and is a wellestablished player in the safari and adventure tourism market.

But now, with a booming tourism market, Rutherford is concerned about rising costs. The very essence of his business is about putting people in touch with the African wild, at a reasonable price. With governments realising the opportunities presented by tourism, some charges have already started to creep up.

“If we are not careful, tourism will become the domain of the rich only. My main concern for the future is pricing,” Rutherford tells Enterprise Africa.

Nomad uses purpose-built trucks, with large windows and strengthened canopies, to transport tourists

NOMAD AFRICA ADVENTURE TOURS

through some of southern and eastern Africa’s iconic draws. With fees going up, the company has to pass on costs to the consumer, and this is not good for those on a budget.

“As an operator, we are dealing with increasing park fees and increasing costs to take people to these places,” says Rutherford.

“There will always be people that can afford anything, but I am not a fan of five-star travel. I believe that normal people need to see these things as normal people make the world go around. The super-rich can do whatever they want but normal people get more involved emotionally with the communities and contribute positively. In Rwanda, a gorilla permit is $1500 for one hour and, in my opinion, that is pushing the envelope of what is absolutely unacceptable.

“That price makes it unaffordable for most people. There are rumours that Uganda will also push its prices up. The park access fees in East Africa are outrageous. Vehicles are $200, it’s $50 per entrance and $50 for camping with almost no facilities, and southern Africa is looking on wondering how they get away with charging those amounts.

“The five-star places are low volume, high-cost. Ironically, it’s the three-star market that creates more jobs as you need more people to service volume and, as long as the volume is not damaging the environment, that is where you create jobs,” he adds.

Tourism is still viewed by many as a gold mine, but if industrymanagement is not carried out in a sustainable manner, the very desirable attraction of Africa will quickly be overtaken by other parts of the world where value for money is a focus.

Currently, the Asia-Pacific geography has the fastest growing tourism market in the world as many travellers flock to the area to enjoy a vast range of activities and cultures without breaking the bank.

NEW MARKETS In October, the South African Tourism industry took a shot in the arm when it signed a deal with China’s largest online platform, Tencent, in an effort to attract more visitors.

Digital marketing across the Tencent ecosystem will help to promote South Africa as a preferred destination as the government looks to increase arrivals from China from around 100,000 in 2018 to half a million annually.

In Q1 of 2019, Stats SA reported a slight dip in arrival numbers from key markets including Germany, the Netherlands and the UK. Tourism Minister Mmamoloko Kubayi-Ngubane was quick to appeal to the country for stability to ensure visitors return, and she also visited China and Japan in an effort to boost the reputation of Brand SA.

At Nomad, preparations are already underway for new types of service crafted around the expectations of travellers from the East.

“Although it is not yet confirmed, after many years of resisting, we are looking at entering the coach market,” says Rutherford. “We will keep our adventure product and we certainly won’t be taking our coaches to places like Namibia. For South Africa and Botswana, it’s absolutely fine to work with coaches. We are busy quoting on a big contract right now and if we get that, it will be a big step for us. I have steered away from it, mainly because our passion is the bush and coaches are a mainstream product. We have to stick with the market and recognise supply and demand, and we see there are certain markets that work a lot with coaches, such as Chinese and Indian.

Thebe River Safaris For a fun-filled adventure and unparalleled convenience, look no further!

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INDUSTRY FOCUS: TRAVEL

Right now, we don’t have something for them and we are getting requests so it will be another expansion just to broaden our offering.”

In order to make the most of all of the fantastic attractions that are on offer across sub-Saharan Africa, Nomad will also be investing in new offices, one in Kenya and one in Namibia.

This idea comes as the company has witnessed an increasing age in its customer base, and a desire to move around less while on vacation.

“We are finding that people want to

// OVER THE PAST COUPLE OF YEARS, WE HAVE SEEN QUITE A RADICAL SHIFT IN THE MARKETPLACE IN TERMS OF TRAVEL BEHAVIOUR // 12 / www.enterprise-africa.net

travel less and they are more destination focussed,” details Rutherford. “While the demand is still there for our traditional trips, we’ve also made the decision that we have to launch a new series of products that cater more for people who don’t necessarily want to see four countries in one trip. We will be opening an office in Namibia and we will be running shorter trips in Namibia whereas currently most of our trips run from South Africa, through Namibia, into Botswana; or they start in Namibia and run to Victoria Falls or somewhere else in the region.”

Next year, these smaller, more focussed tours will kick off with a slightly higher price point, aimed a more mature traveller who is still value conscious.

“Over the past couple of years, we have seen quite a radical shift in the marketplace in terms of travel behaviour. It was stable for 10-plus years and, around five years ago, we started to notice a shift as clients got older and trips got shorter. Africa has

become more expensive and that is a driver behind the clients getting older,” says Rutherford.

“It’s a little sad to admit that, right now, camping is on the decline. I would imagine in 10 years, just 10% of our product will be camping whereas 10 years ago it was 90% - it’s a huge change that has happened quite fast.

Again, it is linked to older people who did camping when they were younger but they are now done with it and the youth market is travelling less in Africa they are now looking to Asia and South America where it is cheaper. That is a shame but we don’t have control over that as the cost comes from the activity fees and the park costs. We are evolving to meet the different requirements of the market.”

This evolution also includes a new emphasis on east Africa where safari adventures and wildlife excursions still rule. A new office will be opened in Nairobi to cater for those solely interested in game viewing in the Maasai

NOMAD AFRICA ADVENTURE TOURS

// COMPARED TO A LOT OF OTHER INDUSTRIES, WITH JUST A LITTLE BIT OF EFFORT CAN RESULT IN A FAST TURNAROUND // Mara or other popular safari destinations.

Nomad is also preparing to launch in Rwanda, a country which has reinvented itself as a tourism hub with unique offerings.

“In 2020 or 2021, we will launch in Rwanda. I recently visited the country and was pleasantly surprised by what I saw. We are looking at entering with a primate tour angle,” explains Rutherford.

Beyond Rwanda, Nomad will wait before looking at further expansion opportunities. The tourism market is ever-changing and it is important to

understand each market fully before jumping in. Rutherford is also keen to always remain in control of quality rather than becoming a reseller and offering clients something they could go out and organise for themselves.

“Rwanda is at the top of our list,” he says. We are looking at Angola, but I don’t think it’s ready yet. The demand is not quite there yet and it is a very expensive country. Beyond that, not really. We view ourselves as an operator and not a reseller. Our next options would be Ethiopia and Madagascar but we would end up subcontracting everything and we’ve found in the past that our clients are not keen on that as they could just arrange it themselves.

We want to stick to tours that we can run ourselves.

“The rest of Africa is really tough.

Once you get north of Uganda, you start dealing with a whole other world. There’s a lot of no-go countries right now – the DRC and Sudan are very hardcore places and we are

seeing people turn away from that type of travel and opting for more comfortable travel.”

Currently, regulations differ from nation to nation and this can make things tricky for operators like Nomad.

In east Africa, for example, foreign companies cannot enter national parks as operators and have to subcontract that section of a trip to a local partner.

By opening local offices and creating businesses in-country, Nomad will be able to retain control over its routes and service quality. Continuing to develop lasting relationships with agents and suppliers will be vital as these new businesses go up against established competitors.

Nomad will add to its fleet as it expands in east Africa, bringing more land cruiser-type vehicles which are reliable and perfectly suited to safari conditions, in what Rutherford terms a “fair capital investment”.

Continues on page 16

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See Real Kenya with Sentrim As one of Africa’s most visited countries, and one of the world’s most famous safari destinations, Kenya has enjoyed a buoyant tourism sector for the past 10 years. After a dip that followed the global financial crisis of 2007/08, Kenya is welcoming more tourists and offering renowned African hospitality. Today, tourism is one of the largest drivers of foreign exchange for the country.

Whether guests arrive for business or pleasure, the industry has a wideranging accommodation offering. Central hubs such as Nairobi and Mombasa are home to large hotel brands, and more rural locations have fantastic safari lodges and bush resorts.

Founded in 2002, Sentrim Hotels is present across Kenya with eight hotels and lodges. As a trusted partner of Nomad Africa Adventure Tours, Sentrim’s hotels are chosen because of their fantastic location, reliability, quality and price.

As Nomad tours move through Kenya, Sentrim has become the go to hotel brand for stop overs.

Director Jac Patel says that the two companies share a belief that travel should be priced for everyone and, as a result, enjoy a thriving relationship.

“Our prices are very competitive. We are not expensive and we charge for the normal middle-class person,” he says.

“We have been working together for many years and it has been very positive - we have a very good relationship - I cannot complain at all. They have good clientele coming in, and they receive good service from us, so the relationship is very positive.

“We offer good service, good rooms; and everything is clean and tidy. Most of our lodges are almost brand new. We started Sentrim Hotels and Lodges in 2002 and we have built five lodges – Amboseli, Samburu, Mara, Elementaita, and Tsavo; and we have three city hotels – one in Mombasa called the Castle Royal Hotel; and two in Nairobi – 680 Hotel and Boulevard Hotel,” he adds.

Sentrim, which was named as the Best Hotel Business in Kenya in 2013 at the BD Travel Awards, is enjoying a purple patch right now, even in a highly competitive market. For Patel, the hope is that by continuing to invest in a quality product, the company’s success can continue.

“We always ensure that all of our properties are up to date and we are constantly outfitting,” he says.

“The city hotels are facing an ever-increasing amount of competition – there are many hotels popping up from tough competitors. The lodges are doing very well and I have no complaints – the high-season and low-season are currently doing very well so we are happy with the lodges.

“Tourism is very good at the moment,” he adds, “generally speaking, it’s going very well. We hope that things will continue to go this way!”

With business guests heading to the cities from neighbouring countries - Rwanda, Nigeria, Sudan, Tanzania, Uganda and South Africa – and international tourists coming from Europe, North America, Australia, and the East, Sentrim is perfectly positioned to offer accommodation to all travellers arriving in Kenya.

“It’s so far so good,” says Patel. “At Sentrim Hotels and Lodges we believe in quality service delivery.”

See one of Africa’s gems, and all of the amazing things that Kenya has to offer, with Sentrim – a leader in quality, affordable Kenya hospitality. www.sentrimhotels.net / +254 20 3315680 / +254 (0)737 680680 / reservations680@sentrim-hotels.com

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Sentrim Amboseli

Sentrim 680

Sentrim Boulevard

Sentrim Mara

Amboseli

Castle Royal

Sentrim

Sentrim

Sentrim Six Eighty

Elementaita

Foot of Mt. Kilimanjaro

Mombasa

Nairobi City

Nairobi City

Great Riff Valley

Sentrim

Boulevard

Sentrim

Sentrim Mara

Sentrim Tsavo East

In Mara Game Reserve Tsavo National Park

find out more or book online at:

www.sentrim-hotels.com

INDUSTRY FOCUS: TRAVEL

Continued from page 13

In South Africa, the company is looking to improve on its already very successful dive tour product where visitors can go through a “surf and turf” offering, experiencing safari products inland before being transported out to the beaches of KZN for scuba.

MAKING THE MOST OF TOURISM Both the public and private sectors have invested heavily into tourism, especially in South Africa where it is estimated that more than 650,000 jobs are directly supported by tourism. But, even with major investment, it is still the responsibility or the industries big players to make the most of the opportunities that are presented.

Rutherford is certain that tourism

// IF WE ARE NOT CAREFUL, TOURISM WILL BECOME THE DOMAIN OF THE RICH //

Owner Alex Rutherford

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holds major prospects, and he is in no doubt that African tourism has much room for growth.

“There is massive potential – there is no doubt. In some countries, it is the only potential. There are many countries where there isn’t a lot going on and tourism needs to be the bigticket item,” he says.

“Compared to a lot of other industries, with just a little bit of effort can result in a fast turnaround. The ability of social media to highlight something that is exciting or different, you can get the word out so quickly and you don’t have to wait for decades of word of mouth.

“It is definitely already a huge player and can definitely grow substantially. The nice thing about Africa is that there is still so much open space in terms of wild Africa – it is not

built up, so the capacity for tourism to grow is there. The responsibility from people is also growing strongly.

In terms of looking after these spaces, I don’t have any concerns that things will get wrecked by having more tourists; if anything, it’s getting more controlled and more regulated and that is good.”

This is testament to the work being done by the likes of Nomad and others in the industry. It is a stark contrast to the picture that Rutherford found when he was travelling across the continent, unknowingly becoming an entrepreneur and developing the idea for his business.

“I went overseas and worked for a while but I got it into my head that I wanted to drive home and didn’t want to fly. I wanted an adventure and I’d always had an interest in Africa and

NOMAD AFRICA ADVENTURE TOURS

the bush. It wasn’t a business thing at that point, I saw it as an opportunity to see the continent. Little did I know it would be the trip from hell. It was a hard trip. There was very little entertainment value and it was more terrifying than anything.

“On the trip, I encountered a couple of old school trans-Africa travel companies and, back then, what I saw was shocking. It was rough and ready, the professionalism of the guides and the standards of the vehicles was pretty hardcore. There were people getting sick and even dying. I thought to myself, there has to be a better way to do this as the principle isn’t complicated,” he remembers.

DRIVING VISION After two decades in African tourism, Alex Rutherford is still buoyant about this exciting industry, and he is enjoying planning a future on the continent. Even though the industry is changing, Nomad is set up to be nimble and reactive to market conditions, without corporate shareholders, and with highly experienced managers on the ground.

“I have a very good team and a lot of them have been with me for a long time. They have worked from the ground up and they know the business. We have a solid operational background across various departments,” he says.

“I am lucky as I now take on more of the visionary jobs in the company. I have just concluded a two-month trip in East Africa doing site inspections and searching out new routes – that is where the Rwanda idea came up.

Without this trip we would have never realised the opportunities – it gets the creative juices flowing as you get out and talk to people about what is popular.”

Many travel agent and tour operator managers, especially those that work as part of international businesses, would never get this type of opportunity and would more often

The first choice in Chobe



be focussed only on sales rather than experience. Nomad is different.

“We are a journey company, not a destination company,” states Rutherford. “Our focus is on the process of travelling; in simple terms, the road tripping of Africa – meeting people, interacting with the local community, seeing a lot in a relatively short space of time.”

The entrepreneur, who spent the first decade with Nomad “chained to the desk” is looking forward to improving market conditions in the future, and certainly still believes that Africa is alive and waiting for you to discover her magic.

“2018 was a bit of a drop from 2017 when we had our best ever year.

2019 has been flat and it’s frustrating as it’s all down to market conditions that are out of our hands. Things ebb and



flow, and sometimes you just have to wait things out,” he says.

71% of tourists spend money in Africa on leisure activities but less than 5% of international travel arrivals are in Africa. This is a market with massive room for growth. At Nomad Africa Adventure Tours, growth into new markets and the addition of new products to bulk out the portfolio will only strengthen what is a superb travel business that delivers value for its clients.

WWW.NOMADTOURS.CO.ZA

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TRAVELSTART

Africa’s Leading

Travel Agency Soars

Sky High After Acquisition PRODUCTION: Travelstart

Africa’s leading online travel agency is embracing the continent’s digital future and empowering travellers in emerging markets through product innovation, acquisitions, partnerships and good old-fashioned values. Managing Director, Jerome Touze talks to Enterprise Africa about what has been a very busy year for Travelstart.

//

The success of Travelstart, Africa’s largest online travel agency, is a timely reminder of rapid digitisation taking place on the continent.

By 2022, it is estimated that Africa will be home to more than 636 million smartphone connections – double that of North America. Mobile data traffic is also expected to boom, increasing more than seven times its current rate.

According to Harvard Business Review, ‘digital technologies allow forward-looking businesses to recast Africa’s challenges as an opportunity to innovate and address massive unmet demand’.

Established by entrepreneur Stephan Ekbergh in Sweden in 1999, Travelstart relocated to Cape Town in 2006. From the southern tip of Africa, the online travel agency has grown its market presence to 18 countries across two continents.

Travelstart’s growth strategy has elevated the company into new sectors of

travel and tourism, and MD Jerome Touze is optimistic about the future.

“Travelstart is an established business that is experiencing strong growth in our core geographies and this is something that we are very proud of,” he says. “We have a long history in the South African market and a very strong brand. We are the largest online travel agency in Africa, and we don’t rest on our laurels. We are confident about the new services that we are rolling out and we think there are plenty more opportunities ahead. We are always looking at how we can bring more convenience to our customers and creating a compelling travel booking platform is at the heart of our mission.”

FLAPP When Enterprise Africa last spoke with Travelstart its flight booking app Flapp had exceeded one million downloads.

Today, Flapp is a driving force in how Travelstart connects with customers and

Touze is keen to expand mobile services to satisfy more traveller needs.

“Flapp is definitely a core component of our strategy, especially in how we retain customers,” he says. “In the past few months, downloads have surged and we have seen a marked increase in the number of people who are comfortable with completing travel bookings on small screens. This year, flight bookings completed on the app increased by over 65% from 2018. Now, we are building out the app with features that will drive more engagement and loyalty.”

Across many industries, mobile has emerged as a dominant sales channel and at Travelstart it’s no different. Even with Africa’s notorious connectivity challenges and steep data prices, mobile is soaring.

“The key is in optimising the user experience and following through in all aspects of the customer journey; not just on mobile but across all touch points,” says Touze.

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INDUSTRY FOCUS: TRAVEL

For more than a decade, Travelstart has had to adapt to constant change while remaining conscious of the nuances of each of its operating markets.

“In Africa, there’s no one-size-fits-all solution. To be successful, you need to be intimately in-step with your customers.

Are they comfortable with self-booking or would they prefer to speak to a person? Which language do they want to communicate in? Do they have the means to pay online or are they cash buyers only? These behaviours vary from country to country and are a crucial part of winning customers.”

In addition to solving the big issues, Travelstart aims to go the extra mile and innovation is an important part of how the company sets itself apart from competitors. “One of the products we launched this year is an optional, automated flight check-in service. It reduces friction and makes our customer’s lives easier before departure.

Even though it’s offered for a fee, people love it,” Touze says.

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“We are investigating niche ancillaries such as flight compensation insurance to reimburse customers who experience delays or cancelled flights,” he adds.

FIRST CLASS ACQUISITION At the heart of Travelstart’s success is an unrelenting focus on delivering a comprehensive platform and acquiring customers across territories. In December 2018, ‘Travelstart for Business’ launched in response to the lack of simple corporate travel solutions in the South African Market. The platform replicates the simplicity of its leisure offering with effortless reporting and booking tools for corporate travellers.

In October, Travelstart showed it is serious about corporate travel by wholly acquiring South Africa’s long-standing Club Travel Group.

“The strategic fit was very clear to all stakeholders,” confirms Touze. “We worked on the deal for more than a year and we are already working with our new partners to identify quick wins and synergies.

Travelstart for Business will benefit from the experience and market coverage that Club Travel has earned over the years.”

November marked Travelstart’s first entry into road travel with the addition of a long-distance bus booking platform in South Africa. At the time, Touze told the media: “For 13 years, air travel has been our focus, but bus transport also fits with our mission to make all modes of travel simpler and more accessible for everyone.”

This type of extension will become more frequent as Travelstart’s integration with Club Travel takes hold. Touze offers some advice about acquisitions saying, “Cultural fit is as important as financial metrics when looking at acquisitions.

After the deal was finalised, our staff count doubled overnight so you need to be cautious in how this expansion unfolds.

In this case, both parties recognised the value in each other, and it has made the transition a lot smoother.”

ALWAYS EXPLORING Travelstart’s growth beyond South Africa includes Tanzania, Egypt, Namibia and Nigeria where the local business has taken off. “We are happy with our growth across the board, but Nigeria has stolen the show this year. Affiliate marketing and paid advertising have contributed to this, but we have also hired excellent local talent and opened a new office in Lagos which serves as our first retail outlet. People can walk in and book a flight with an agent which people value in a country where distrust of online payment gateways is still a challenge.”

Since inception, Travelstart has prioritised the customer experience by practicing the core principles on which the company was founded. Even so, Touze says they can always do better.

“We believe we can do a much better job on mobile and we realise optimisation doesn’t end at launch. Refining the customer journey, lifting conversion rates and polishing content are ongoing and we have exceptional people in place to ensure we get the basics right. In Africa, where people do not always have access to Wi-Fi or fast networks, site and app

TRAVELSTART

speed are critical in delivering a service that people return to. Our engineers understand this and are constantly rolling out initiatives that enrich the nuts and bolts of the service,” says Touze.

AWARD WINNING To round off a milestone year, Travelstart was named the Best Online Travel Agency at the Nigeria Tourism Awards and Travel Agency of the Year at the 2019 Pyne Awards.

“It’s nice to get recognition for the work that the team puts in. Our people do an amazing job and they can be proud of what has been accomplished this year.”

Travelstart collected these accolades by delivering beyond the digital details with an equally impressive culture of customer service. “Operations are geared throughout the funnel to assist customers with amendments, refunds and every

other aspect of their trip. Our dedicated agents are available around the clock and this helps overcome the inherent barriers digital companies face.”

TRAVELSTART MEDIA With an addressable audience of more than 50 million travellers globally, Travelstart introduced a media division in April 2019. Titled ‘Media Hub’, the B2B division offers Destination Marketing Organisations and travel and tourism businesses around the world a platform to promote their brands and services to an active community of world travellers.

“It was a natural evolution to connect our audience to appropriate third parties,” explains Touze. “The size of our audience is a strong proposition when we discuss sponsorship or advertising opportunities with Media Hub prospects. We can give them a voice that resonates with

audiences they might not reach through their own marketing playbook. In a few months, we have signed commercial agreements with South Africa Tourism, Mauritius Tourism, Reunion Tourism and Thailand Tourism, to name a few.”

The success achieved by Travelstart is testament to the sound business and brand that has been developed with much hard work over the past 13 years.

This growing business is succeeding thanks to a commitment to robust core values: Keeping it simple, romancing the customer, swimming upstream, and competing with a warrior spirit.

WWW.TRAVELSTART.COM

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NETSHITUNI COACHES

35 Years Still

Rolling in Limpopo PRODUCTION: Karl Pietersen

Proudly serving the Limpopo and Gauteng communities for 35 years, Netshituni Coaches is a family business that moves people. Transporting people to and from work and school, this company has a range of buses and coaches equipped with Wi-Fi and other modern amenities, and everything comes at affordable prices. As activity in the region grows, and the population continues to expand, Netshituni Coaches is perfectly positioned for growth in the fast lane. www.enterprise-africa.net / 23

INDUSTRY FOCUS: TRAVEL

//

Despite being the province with the third highest average salary rate – behind only Gauteng and the Western Cape – Limpopo’s wealth remains low.

Unemployment sits at around 17%, better than the national average, but still leaving almost a million people jobless. The province – which is the fifth largest, with almost 50,000 square miles – looks to government and traditional business such as mining for work. Teachers, nurses, agricultural workers, tourism employees and infrastructural workers make up some of the key industries. Away from expensive data packages, fixed line internet provision is not widespread, especially in more rural areas, and public transport remains underdeveloped.

Clearly, there is a need for the private sector to complement efforts of the public sector to modernise in the province. Creating jobs, bringing innovation, and helping to move people is vital if Limpopo is to thrive.

This was the clear understanding of Andries Netshituni when he established his transport business in the province in 1984. Initially, the company was focussed on taxi services and small transport runs, aimed at getting students and teachers to school and nurses to hospitals from the rural areas.

These distances can be long, dangerous and difficult.

At the time, Andries was probably unaware of the impact that his enterprise would go on to have. After initial success with the business, things began to grow and demand was far outstripping supply that Andries could deliver. It was clear that expansion was on the cards and, eventually, Netshituni Coaches was established in its current form, as an integrated transport business moving people all over Limpopo and Gauteng, helping them to get to work, school and to see family.

The most important element of the business, and one which has never changed, has been doing things affordably. Andries recognised that people in Limpopo’s rural regions were not willing or able to fork out huge fees just to get to school or work, so he developed efficient routes and pricing to help the business run smoothly while meeting the needs of his customers.

Unfortunately, Andries Netshituni passed away 2013 – his death was untimely – and the void at the head of the now well-established company was filled by his wife Luciana (Lucia) Netshituni.

She went about continuing to grow the business while always remaining true to the core values installed by her husband. Today, a strong mission and ambitious vision drive this company forward.

// THERE IS COMPETITION BUT WE HAVE WI-FI ON OUR BUSES, WE HAVE PHONE CHARGING POINTS, WE HAVE AIR CONDITIONING, WE HAVE READING LAMPS, AND WE HAVE RECLINING SEATS //

BORN IN LIMPOPO “Safety, reliability, efficiency, and sustainability methods are principles our company live by,” states the company. “We ensure commuters are always comfortable in our fleet and that drivers are trained in customer services. We strive to be proactive and ever mindful of the changing transport needs of our passengers. Passenger safety is crucial.

“We always strive for excellence in offering the best bus services with the highest degree of safe and efficient transportation at reasonable fares. We take pride in serving transport to the

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// WE STRIVE TO BE PROACTIVE AND EVER MINDFUL OF THE CHANGING TRANSPORT NEEDS OF OUR PASSENGERS // communities around Venda and Gauteng and we look forward to doing so for years to come.”

Currently, Netshituni Coaches operates around 60 MAN and Scania coaches that service routes all over Limpopo and Gauteng, and even into Zimbabwe. Expansion is on the cards with further routes being investigated into Mozambique, Botswana and Zambia. New coaches are also being prepared as the management looks to add to the fleet and bring new services online.

“The villages are growing, they are building more hospitals and schools, and the population is growing.

The current buses we have get very overloaded and are at capacity,” Luciana told Enterprise Africa.

She said that new coaches, which will be improvements on the already very good fleet, will help to ease growing demand as the number of people moving between rural areas and commercial centres grows. “They will be added gradually and not all at the same time. There are many malls, schools and offices being built so depending on the population growth, we could add more than 20 to deliver an effective service – this is an ongoing investment programme.”

From 1996 to 2016, the population in Limpopo has ballooned from around 4.5 million to around six million. But population density remains sparse, and away from busier towns, the transport connections are less common. The five district municipalities; Capricorn, Mopani, Sekhukhune, Vhembe and

www.elegant-group.co.za

INDUSTRY FOCUS: TRAVEL

Waterberg; offer large opportunities for companies that are knowledgeable and experienced in their sector.

Netshituni Coaches, driven by national supplier Elegant Fuels, will continue to create jobs as its presence grows, adding to the 100 people already employed by the company.

FUELLING ECONOMIC GROWTH “With each new coach we bring to fleet, we create three more jobs,” said Luciana.

One of the key elements separating this local industry leader from the competition is the quality of buses.

While mini buses operate routinely around the region, they simply cannot compare to the 50, 65, 70 and 120 seater luxury coaches employed by Netshituni.

Most come with free Wi-Fi, LCD TVs, DVD players, CD players, stereo systems as well as air conditioning. Reclining seats, window blinds, and driver PA systems also help to make the service distinguishable against others.

“There is competition but we

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have Wi-Fi on our buses, we have phone charging points, we have air conditioning, we have reading lamps, and we have reclining seats. These are just some of the innovations that we install to make sure the passenger feels at ease on the bus and keep their lives going while they are on the bus. Netshituni is the only operator in Limpopo to offer these services,” states Luciana.

“Some of the villages we provide for are very poor, and Limpopo is a poorer province, so our Wi-Fi does help the young people to get information while they ride. Yes, it helps us separate ourselves from the competition, but it is also helpful for the children to get more information for school or work. We have found that the Wi-Fi really does help them to research and acquire knowledge.”

The service is especially handy for those on the job hunt, or those communicating with academic leaders.

“We hope to continually convince

the customer that we are the best and convince them that we will deliver whatever they need to feel comfortable.

We will always listen to the customer – that is the key to keep them coming back,” she says.

ECONOMIC SPEED BUMP One bump in the road which is causing discomfort for most businesses is the unpredictable South Africa economy.

Netshituni Coaches, although established for more than three decades and well-respected in its sector, is not shielded from the effects of a slack economic environment. Businesses and people have less money to spend, there is less confidence, and government spending, on things like road improvements and assistance for those in need, dries up. Following a slight uptick in Q2 of 2019, the country’s economy dipped once again in Q3, falling by 0.6%.

Luciana Netshituni is concerned that this volatility will ultimately impact those

NETSHITUNI COACHES

// I’M VERY HAPPY WITH THE BUSINESS AND HAPPY WITH THE DIRECTION WE ARE MOVING // who cannot afford to be disrupted.

“I’m very happy with the business and happy with the direction we are moving,” she said. “The only thing that concerns me is the impact of the economy on the lower end of the market because it is sad that we provide a fantastic service but people are still left using all of their money on food and transport only. I really hope the economy improves so that there is more money for the lower end of the market.

I think it will pick up – the President has sent out a delegation to attract investment into the country and he is making changes so that people can

benefit and we can all make something of ourselves.”

At the start of December, the announcement came through from the Department of Mineral Resources and Energy that 93 (ULP and LRP) and 95 (ULP and LRP) would both receive a 20 cent price increase. The fuel price is an obvious business-critical factor that must be considered by Netshituni Coaches, and it is passed on to the consumer.

“We are expecting the diesel price to go up again and not come down anytime soon so we are unsure - it is scary. When you are providing a good service, but people are complaining about the prices which are out of our control, that is not nice. Most of the people we carry are workers and students and those people do not have a choice – they have to go to school or work.

“We have not seen a drop off in passenger demand but it does affect the lower end of the market where earnings are small,” says Luciana.

Right now in South Africa, big

corporate transport companies are having their reputations dragged through the mud. SA Airways and PRASA (which owns Autopax) have both entered business rescue and administration situations, and uncertainty about the sustainability of these entities is rife. For the smaller, efficient, effective, customer-focussed businesses – especially those that are expanding and creating jobs – there is light at the end of the tunnel, and although the economy still leaves hurdles in place, these businesses drive regional industry forward.

“We strive to be proactive and ever mindful of the changing transport needs of our passengers,” says Netshituni Coaches, and as long as this continues, this is a business that will thrive.

WWW.NETSHITUNICOACHES.COM

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HEUNIS STEEL

Invest in Guaranteed

Strength from Heunis PRODUCTION: Karl Pietersen

Rainwater goods, roof sheeting and ceiling products manufactured by Heunis Steel in Pretoria are of the highest quality available in South Africa. Offered countrywide, Heunis Steel goods are favourites for builders, plumbers and home improvers. But the manufacturing industry, and the wider economy in SA, is creating a challenging environment for downstream profilers. Marketing Director Martin Carelse talks to Enterprise Africa about how this historic business can grow in the future.

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INDUSTRY FOCUS: MANUFACTURING

//

Last year was the 50th in business for Pretoriabased Heunis Steel. The manufacturer of metal rainwater, roofing and ceiling products has been under the same family ownership since its establishment in 1968.

Today, under the third generation of Heunis family leadership, Heunis Steel leads the way in galvanized rainwater goods, roof sheeting and ceiling products for the plumbing and building industry. Supplying the major national hardware retailers, Heunis Steel is recognised for quality, reliability, prompt delivery, and flexibility.

Often, family-owned businesses that perform strongly in early years are acquired by corporates or sold on for profit and rebranded. But Heunis Steel is different and continues to produce successfully against a challenging economic backdrop and in a manufacturing industry that continues to dwindle.

Marketing Director at Heunis Steel is Martin Carelse and he explains that, even in a highly competitive

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industry and with a difficult macro picture, this South African manufacturer continues to grow because of its variety, technology and quality distribution arrangement.

“We cannot participate in negativity. We feel positive and we keep pushing every single month,” he says. “We do not let things get us down. We find new avenues for revenue. We are realistic and we know there are opportunities and that is what we will concentrate on.

“I think we’ve managed to succeed by sourcing new clients, sourcing new products and getting our efficiencies right with our delivery and logistics side – that really counts in our favour.”

GROWING RANGE Heunis Steel is known for its galvanised steel products including down pipes, guttering, brackets, grease traps, stove pipes, vent flashing waterheads, and stopends. In September 2009, the company acquired Barak Products – a manufacturer of ceiling products –

// WE ARE DOING SOMETHING RIGHT BUT IT TAKES A LOT OF TIME, HARD WORK AND DEDICATION // and this made Heunis Steel the only company manufacturing highquality powder coated ceiling strips and trap doors.

This range of products will continue to grow as Heunis invests in research and development to ensure it is at the forefront of the market.

“We are busy with two product lines that we are looking at – I don’t want to reveal too much just now but it will be an add-on to the ceiling range that we already have and will be manufactured from galvanised steel,” says Carelse.

As more new products are added to the portfolio, it is key for Heunis to get its distribution right. Owning all of its vehicles and building strong relationships with clients, the company’s logistics department helps to set Heunis apart.

“We introduced galvanised roof sheeting eight years ago and it’s a very competitive product line to manufacture and distribute as it is a volume base product with low margins. If you had to send a 16-ton truck and you have a ±R300,000 load on that truck, your return is very small compared to the expense you make on the vehicle and delivery. We have to add something more valuable onto the truck and not try and deliver only 16 tons of roof sheeting. That is why we sell a full basket of products in one delivery,” says Carelse.

Heunis utilises all data available to it to ensure its logistics department is as efficient as possible.

“We measure everything,” admits Carelse. “We measure kilogram per litre, strike rate of the driver, how effectively things are delivered, we

INDUSTRY FOCUS: MANUFACTURING

// WE REMAIN PROUD, CONSISTENT AND PASSIONATE // track vehicles; we try and turn the vehicles as many times in a week as we possibly can.”

This information is invaluable as the company adapts to constantly changing market conditions and customer demands.

“There are more and more trucks on the road and customer buying patterns have changed. In the past, customers would give you bulk orders and you would only deliver once a month. Today, those customers do not have the spend and will order four times per month, meaning we must deliver four times per month.

The customer is expecting us to carry the stock and then deliver it, and that costs money.”

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ECONOMIC SHOCK Manufacturing in South Africa has been hailed as a sunrise sector for the economy – one where the government believes job creation could come in a big way. But those active in the sector are less optimistic.

Stats SA announced in November that manufacturing production had decreased by 2.4% year-on-year in September, following a 1.5% decline in August. Load shedding, global uncertainty and flat local demand have all hit manufacturers hard. Even President Ramaphosa has admitted issues. “The decline of the mining industry and manufacturing has cost the country millions of jobs and much economic capacity,” he said while opening of the Presidential Jobs Summit at the Gallagher Convention Centre last year.

Carelse, who has been with Heunis Steel for 15 years, says that economic pressure is certainly something that

the company has to navigate.

“The economy has caught up to us,” he says. “Our government does not protect the downstream manufacturer – that’s the smaller companies profiling steel products but who need help to be able to afford quality raw material. The Chinese can manufacture steel, and manufacture an end product, and bring it into South Africa at a cheaper price for the end user so that is damaging for the downstream profilers that are creating jobs. We are working hard to create jobs but we do struggle to compete against Chinese pricing, and we receive no protection – it’s a tough sector.”

Currently, the manufacturing sector is responsible for 1.7 million jobs in South Africa and contributes 14% of GDP. With unemployment at 29%, the country cannot afford to lose anymore jobs.

“People will end up looking to China and importing finished products,

HEUNIS STEEL

and that will result in retrenchments here in South Africa,” warns Carelse.

“That is the last thing we want but that is the way it will go if we are not careful – it’s a difficult situation. Consumer spending in South Africa is not growing. Normally, in November and December, factory workers get bonuses and they take that money for home repairs and improvements. That spend has diminished drastically. On top of that, there is government corruption, Eskom and its major issues, the SAA problems, and global economic trends, and it results in a difficult time for South African manufacturers.”

// YOUNG PEOPLE DON’T HAVE THE DREAM OF BECOMING A SHEET METAL WORKER //

The decline of the country’s construction sector has also contributed to the slowdown in manufacturing. As fewer projects are given the go ahead, fewer are making it to the later stages, when Heunis Steel gets involved. Share prices of the major listed construction firms have plummeted since the exposure of a price fixing scandal.

“Construction companies go onto a site and put their infrastructure in – we have nothing to do with that; then they do the building and we are not involved there; once they get to ceiling height, that is when we begin our work. But, some of these projects are not even getting to the infrastructure stage before they are canned. Then you are relying on the consumer to start with renovation and DIY but their spend is also low as they have less disposable income. We are going through a tough time and we have seen it coming for a few years.”

50 YEARS EXPERIENCE Through its five decades in business, Heunis Steel has seen ups and downs in the economy and complete social and economic change in South Africa.

The company knows how to deal with changing conditions across its marketplace.

“We are doing something right but it takes a lot of time, hard work and dedication,” says Carelse.

By introducing new products, streamlining delivery and logistics, and always offering solutions to problems rather than trying to sell a ‘one size fits all solution’, Heunis Steel has always moved through difficult times without too much trouble.

“We want to get to a certain turnover in five years’ time and we have built the infrastructure to accommodate that growth, but the economic downturn has caused a hiccup in our plan – it might now take longer than we originally planned,” admits Carelse.

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INDUSTRY FOCUS: MANUFACTURING

Retaining and nurturing an extremely strong company culture has also been essential to the growth of the business over the years. Expanding to become a significant player while maintaining a family feel within the business has been vital. This has allowed Heunis Steel to make quick decisions and adapt to the needs of customers as well as bring in ambitious people with the right personality.

“We still have the family background but it has evolved,” explains Carelse. “Technologically, the business has grown significantly but we do still have the family feel and we remain proud, consistent and passionate. We still have an entrepreneurial flair in the business which allows us to make things happen quickly and effectively.

“The third generation of the Heunis family, Anton, is in charge of the business now and he remains hands on in the business alongside his

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wife, Tammy, who is the HR Director.

His brother and sister are also involved in the business in the logistics and buying department.”

The wider Heunis Steel family is made up of 160 people and the company invests significantly to discover talent from a number of different sources in a very competitive environment.

“To find quality, qualified sheet metal workers is very, very difficult.

It’s hard worldwide but even worse in South Africa. It’s a major issue for us – what we can get out of people and what we have to pay is a big query for us. We go to the schools and the unions and look for trained technical people that are looking for apprenticeships. This is also helpful for us as it gives us accreditation.”

Unfortunately, even with all the effort that goes into finding good people, because of the state of the South African manufacturing space, keeping those people is not easy.

Especially challenging is discovering youth who are willing to put in that hard yards before working their way up through the company.

“Technology is increasing and technical skills are diminishing.

Young people don’t have the dream of becoming a sheet metal worker.

Everyone wants to be a manager straight away, but in this industry you need to start at the bottom,” says Carelse.

He warns that if the industry is not careful, job creation will slow even further as technology, and the efficiencies that come with it, become too attractive.

“We are already investing in robotics and machines,” he says. “We have robotic welding machines in the factory and they are definitely improving our efficiency. We are at a crossroads in the manufacturing industry in South Africa and we need to decide which way we are going to go.”

HEUNIS STEEL

STEELED FOR GROWTH With a desire to grow revenue in the future, Heunis Steel has everything that it can control in place and ready for expansion. Importantly, the company has very robust and longstanding partnerships in place with clients.

“We supply to the likes of Cashbuild, Chamberlains, Mica, Builder’s Warehouse – we have relationships with all of the big groups in South Africa,” says Carelse. “There are also the larger independent stores

// WE ARE REALISTIC AND WE KNOW THERE ARE OPPORTUNITIES AND THAT IS WHAT WE WILL CONCENTRATE ON //

in the outlaying rural areas which are very good businesses. We pride ourselves on the relationships we have with our customers. Our salesforce has been in the market for a long time and they know the product and the customers. We try to stay away from the end user – we do advertise so they know our product, but we don’t want to steal our customer’s customer. We deliver to the hardware merchants and we combine our product groups in one delivery. Selling a basket of products is what differentiates us from the others in the same industry.”

If manufacturing is to deliver the jobs and wealth that South Africa so desperately needs, the public sector must assist in protecting SA-based profilers, the government must continue to push education and training of skilled artisans, and the private sector must choose to buy local and buy quality rather than opting for cheaper imports. Stability

must also return to the markets and talk of recession downturn and downgrade must become a thing of the past.

“At Heunis Steel we have a saying when people ask us about the recession. We simply say, ‘we cannot partake in this recession’. We have no interest and have to make plans to move around it. Whether it’s invest in new machines, work over time, or whatever – we have to make it work.

We’ve been around for 50 years and we want to be here in 150 years,” Carelse concludes.

WWW.HEUNIS.CO.ZA

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SA METAL GROUP

100 Strong Years and Counting…

PRODUCTION: David Napier

How many companies in South Africa make to the magical 100-year mark? Even rarer, how many make it through an entire century while remaining under the stewardship of the same family? SA Metal Group has done exactly that, celebrating 100 years in business in 2019, now under the fourth generation of Barnett family leadership.

//

For 100 years, SA Metal Group – one of the country’s oldest and biggest metal recycling companies – has been processing South Africa’s scrap and turning what some consider trash into treasure.

It has been a long and interesting journey for this South African stalwart.

As a business, the company has found a golden model – turning waste, that is classed by others as worthless, into valuable product. This has long been the company’s mantra, and stems from the early days, more than a century ago, when Wolfe Barnett watched his father push a wheelbarrow around the streets of London, England collecting scrap for resale. In 1890, this was a tough job, physically demanding, and for little return. Eventually, in 1900, the family emigrated to South Africa, following many Brits heading for a new horizon in the lush and fresh Cape.

In 1919, in Woodstock, Cape Town, Wolfe Barnett established his own business, SA Metal and Machinery

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Company. This business purchased old machines and broke them up, reselling the spares for repairs and parts. At this time, scrap metal was a by-product for the company and was packed up and sent to the UK on steam ships.

The next two decades were hard for the business following the onset of World War Two and scrap metal was more difficult to come by during the war effort. But, when the war ended, relative calm returned to the market and machine parts were much more widely available. This drove the company hard into the scrap metal space. In 1946, the second generation took the reins as Aubrey Barnett joined and, the following year, a new scrap metal crane was introduced to the Woodstock yard.

As the company grew, more volumes began to move through the yard and so new machinery was required. A hydraulic bailing press and a hydraulic scrap handling machine were acquired from Germany and the UK respectively.

1970S By the 70s, the company was wellestablished and well-recognised in the industry. New avenues for growth were being explored and Waste Control, a business which removes waste rubble from home construction sites had been established a few years earlier.

New hydraulic shearing machines were installed at the yard and, in 1978, an iconic World War II Spitfire jet was restored and mounted at the SA Metal site in Salt River. It went on to become the symbol of the company for many years before being removed following deterioration and vandalism.

In 1980, after six decades in business, the third generation joined the business with Graham Barnett adding to the family organisation. The following decade was major for SA Metal, seeing the first bulk vessel leave from the Port of Cape Town, and then opening a new main site to the East of the city, in Epping Industria.

In 1991, further capital investment

INDUSTRY FOCUS: MANUFACTURING

was made when a shredder is installed, towering above the yard in Epping. SA Metal also made property investments, acquiring land around its Epping yard and expanding to become what is today the largest scrap metal processing plant in South Africa. More vehicles were purchased and more divisions opened as the company’s reach continues to expand. This is highlighted by the opening of a site in Johannesburg and the opening of SA Steelworks in Cape Town in 1999.

CHANGING BUSINESS The new millennium saw SA Metal rebranded as the SA Metal Group, incorporating all sub-divisions, across all major regions of South Africa.

New sites followed in Cape Town, Johannesburg and Pretoria, investment into new equipment continued and SA Metal Group even started producing reinforcing steel bar, accredited by SABS, for the construction industry.

In 2012, the fourth generation joined the business, as Daniel and Rafael Barnett took over the Johannesburg operation, becoming one of the oldest continuously family-owned businesses in the country. 2019 marks the 100year anniversary of the business and - through all the highs and lows, and

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socio-economic changes in South Africa – SA Metal Group has been a single constant supplying jobs, earning export revenue, and recycling waste products that might otherwise be discarded.

The company collects scrap from a variety of sources. Individuals can visit SA Metal yards with small pieces of scrap and exchange for cash, the company places waste skips at larger businesses and collects them when full, and SA Metal can also carry out complete dismantle and removal of old warehouses or factories, taking apart all metal products, sorting waste and identifying useful materials.

In Africa, scrap is big business.

Globally, with a growing focus on recycling and reusing to lessen human impact on the environment, companies are keen to ensure that only the smallest volume of excess is allowed to go unused.

Steel is the world’s most recycle material and is popular because it can be recycled multiple times without losing quality.

Producing materials from recycled steel is also less energy intensive than raw, new steel. Recycling scrap metal is extremely important for the environment and helps to stop the exposure of other harmful materials to natural settings. Car bodies, for example, can leak toxic chemicals into the wider eco system if not disposed of

// IN ALL OUR DEALINGS, WE STRIVE FOR THE HIGHEST STANDARDS OF SERVICE, INTEGRITY, COST-EFFECTIVENESS AND CONCERN FOR THE ENVIRONMENT IN ORDER TO BUILD LIFELONG RELATIONSHIPS WITH OUR SUPPLIERS AND OUR CUSTOMERS // correctly. South Africa exports more than R10 million worth of scrap and uses little for local production. The Metal Recyclers Association of South Africa is keen for this to change and for the country to retain scrap for smelting and use in local manufacturing.

In June, Trade and Industry Minister Ebrahim Patel said that the department would launch a programme aimed at assisting

SA METAL GROUP

Four generations of commitment 100 years

of excellence

At Standard Bank we believe in being more than just a service provider.

We recognise that long-term success requires vision and commitment.

The same kind of vision and commitment that has defined our 25-year journey with the SA Metal Group on our path to shared growth.

Standard Bank is proud to celebrate with their partner, SA Metal, on their 100-year anniversary.

Corporate and Investment Banking Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06).

Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA GMS-10816 08/19

metal producers and metal plant and equipment fabricators. Scrap is a major feedstock for the country’s foundries and mills and exporting less could, potentially, be beneficial for the industry.

“We’ll meet investors and stakeholders on the long-term development of foundries and steel mini-mills, including measures to enable the local beneficiation of scrap metal,” said Patel.

INTEGRATED GROUP SA Metal Group is now much more than a simple collector of scrap metal. It is an integrated material processing business which manufactures vital construction materials and recycles materials that would otherwise be headed for landfill.

Steel billets and rebar, copper busbars and brass bars, steel plates, razor wire,

roof sheeting, and a range of other materials can be produced, and the company’s extensive range of specialist machinery means that production is streamlined and economical.

For 100 years, SA Metal Group has established itself as a cornerstone of the country’s metal industry and, through its reach which now extends across southern Africa, the company continues to accelerate the growth of other companies and drive economic activity. How could Wolfe Barnett have ever known the impact his actions in 1919 would have had a century on.

“SA Metal Group strives to provide the best markets to our suppliers of scrap metals, to supply quality-controlled processed scrap metals, the highest quality steel and non-ferrous products manufactured from recycled scrap metals, the safest and most innovative demolition

services and the most efficient waste removal solutions,” confirms the company.

“In all our dealings, we strive for the highest standards of service, integrity, cost-effectiveness and concern for the environment in order to build lifelong relationships with our suppliers and our customers,” SA Metal Group adds.

With 100 years of successful business now behind it, the family-run SA Metal Group is now looking forward as the marketplace continue to change, and the management is preparing to ensure the Group continues to lead the way and set the standards. With a sustainable and quality-drive approach to business, who would bet against SA Metal Group going for another century?

WWW.SAMETAL.CO.ZA

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ATLANTIS FOUNDRIES

Combining Age-Old Arts With

Constant Innovation PRODUCTION: William Denstone

Part of a global supply chain and of one of the largest foundry networks for engine parts in the world, Western Cape-based Atlantis Foundries is a global leader in the development and production of heavy-duty engine blocks. The company continues to garner awards in recognition of its industry-leading endeavours to modernise practice, operating from the newly-designated Special Economic Zone (SEZ) which it has called home since 1979.

//

Atlantis Foundries produces automotive castings for the commercial vehicle industry, and in addition, operates a full machining facility. The firm also continues to specialise in off-road installations for export to engine manufacturers in the UK, USA, Brazil

and China, and in the past has produced castings for the passenger car market.

The iron age in Africa dates from roughly 500 BC to 1400 AD, when people began making tools and weapons from iron and steel. An ageold art, shaping iron has been forced to evolve into the complex and intricate

cast products of today.

“We are continuing with this ancient craft of working with cast iron,” says Atlantis Foundries, tirelessly bringing it into the modern age, “and have perfected it by achieving the modern requirements of precision casting and machining of grey iron.”

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INDUSTRY FOCUS: MANUFACTURING

MODERNISING ANCIENT ART Atlantis Foundries was recognised at South Africa’s inaugural ‘Factory of the Year’ award, launched in the country in 2018 by A.T. Kearney in partnership with the department of trade and industry, Council for Scientific and Industrial Research, Manufacturing Circle and Manufacturing Indaba.

It is a global annual competition that has been running for over 25 years; recognised as the toughest benchmarking test for companies in the production arena, it draws on best practices from over 2000 factories across all industries.

Atlantis Foundries was decorated with the Excellence in Digitisation award, a real testament to its work to modernise this most ancient of arts. “The current dynamics of the globalising world presents a challenge for all manufacturing operations,” said Igor Hulak, a partner at A.T. Kearney, “and specifically within the South African manufacturing environment where a strong sector has immense downstream impact.”

To ensure Atlantis Foundries remains at the peak of the industry, a strategy of continuous and ongoing improvement has been adopted. But this is not easy for a foundry business, as CCO, Sally Redshaw explained previously. “Foundry technology is

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old and established, and involves very complicated processes,” she stressed.

“There simply aren’t the same technological advancements as there are in other industries. For improvement, we have to look internally to focus on standardisation, optimisation of layout, continuous maintenance and preventative maintenance. In terms of capacity, it’s difficult to increase in small increments in the foundry business, it’s generally a very large jump.

“What we try to do is make processes more efficient so that we can get more output with the same or less input.”

While not quite reaching the iron age, the history of Atlantis Foundries still dates back impressively to 1979, when it was founded by the South African Government and licensed to manufacture Mercedes Benz and Perkins diesel engines. Daimler/Mercedes-Benz South Africa, then DaimlerChrysler, took control in 1999 and incorporated Atlantis Foundries into the Daimler Trucks Powertrain business unit.

The 1999 takeover sparked a period of exponential growth, seeing casting production increase from 30,000 to 69,000 net tonnes per year, before its 2015 sale to German metal casting group Neue Halberg-Guss GmbH and today, its 1200 people contribute to a reputation as one of the best heavy-duty engine block foundries in the world.

SPECIAL LOCATION Atlantis Foundries is based in the town of Atlantis in the Western Cape, around 50 km from Cape Town Port and 55 km from Cape Town Airport in a strong location logistically. On 6 December 2018, the Atlantis Special Economic Zone (ASEZ) was officially launched by President Cyril Ramaphosa, designating it a priority development node.

The president described Special Economic Zones as manufacturing hubs for the entire African continent, capable of reaching and servicing a rapidly growing market for goods and services. The Atlantis SEZ is specifically expected to grow the greentech sector in the Western Cape more broadly, and

// WE HAVE A GREAT REPUTATION LOCALLY, WE HAVE A LOT OF HISTORY AND WE’RE CRUCIAL TO THE WESTERN CAPE, THE SOUTH AFRICAN FOUNDRY INDUSTRY AND THE COMMUNITY OF ATLANTIS //

ATLANTIS FOUNDRIES

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of inspection and even maintenance during operation, by means of internal access platforms, swing out motor bases, and even open spray nozzles and coil.

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AUTOMATIC WATER TREATMENT AND FILTRATION With our automatic dosing systems and bleed control packages, all that will be required is water testing once a month and topping up of chemicals along with a regular maintenance program. With an added cyclone filtration system you reduce chemical usage by 25%, and even save on water consumption by running a higher cycle of concentration.

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revitalise Atlantis as a key industrial node in the region.

Green technologies like turbines, solar panels, biofuels and green building materials reduce or reverse the impact of people on the planet. Situated on South Africa’s West Coast, the Atlantis SEZ capitalises on the Western Cape province’s already booming renewable energy and green technology sector, and taps into the $3 trillion global clean technology market.

R700 million has already been invested in the Atlantis SEZ, including by manufacturers of wind turbine towers, geotextiles, double-glazed windows, wind tower internals and acetylene gas. More than 332 new jobs have been created in the zone to date, with the majority of the positions filled

by Atlantis residents.

Atlantis Foundries is supremely well-

BLUE by nature GREEN at heart

12/10/2019 8:39:12

equipped with the latest technology, development and expertise to challenge the future. Making use of modern equipment in all departments ensures demands are met for high quality and on-time delivery, while a culture of continuous improvement, practiced by every employee from bottom to top, helps to provide the competitive edge and advantage over the competition in the global market.

“We have a great reputation locally, we have a lot of history and we’re crucial to the Western Cape, the South African Foundry Industry and the community of Atlantis,” Redshaw concluded on the remarkably strong foundations Atlantis Foundries’ has forged. “To reach the next level Atlantis needs to secure new business, both locally and in export markets. This will in turn allow the company to justify investment into

expansion and build on its already sterling reputation while creating jobs and further benefitting the economy.

“We are always looking for innovation, efficiency and different ways of doing things to keep our competitive advantage,” was Redshaw’s conclusion, and it is clear that this remains a top priority for the business. “We’ve been in the game for many years, we have a lot of experience and that helps to carry us through. From our perspective, the future is bright. We think we have a sustainable future. There are many opportunities for growth and new business.”

WWW.ATLANTISFOUNDRIES.COM

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APEX CORDSET TECHNOLOGIES

Staying Grounded

While Powering Everyday Life PRODUCTION: Timothy Reeder

“Keeping people efficiently and safely connected in every walk of life is the very reason for the existence of Apex Technologies.” Simple, yet utterly crucial, it is this vision which drives the company to become the preferred supplier of the full range of plug and connector systems globally, powering some of our most vital functions.

//

Established in 1986, Apex Cordset Technologies (APEX) has grown to occupy the leading spot among developers and manufacturers of power cords, household electrical accessories and detonator cable assemblies.

Recognised today as the unchallenged largest power cord manufacturer in Africa, APEX manufactures a huge range of moulded plugs, sockets and related products for

a variety of commercial and industrial applications at a 14,000m² facility, consisting of five plants at the heart of Gauteng’s industrial hub.

“We are already the leading supplier to South Africa and have the ability to meet any country’s standards,” APEX pronounces. In addition to supplying superior products to local consumers, Apex Cordset Technologies has also entered the export market to supply companies in the USA, Chile,

Korea, Australia, Wales, Ireland, Poland and Portugal with its outstanding products.

“Although we are already the leading national supplier of power cordsets, moulded plugs, connectors and wire harnessing, through our mission we will continue to expand our business, introduce new and compatible products and grow in reputation beyond Africa’s borders,” APEX goes on.

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INDUSTRY FOCUS: MANUFACTURING

CORE VALUES A manufacturer, supplier and exporter of a wide range of quality products to suit every demand for moulded plugs, power cords and cord sets APEX supplies the electrical and electronics appliance markets. “APEX utilises state-of-the-art modular and fully automated machinery to ensure precision and consistent quality,” the company states. “Daily production meetings and strict in-house quality control – from materials selection to shipment – guarantee that we meet our customers’ urgent requirements and deliver quality products.

“Creative engineering, outstanding technology and uncompromising quality standards have ensured our standing as a world-class manufacturer in our field. Moreover, we are continuously investing in new technology, skills training, equipment and machinery to maintain and improve the company’s competitiveness.” APEX is renowned for conducting business with a true sense of personal, corporate and community pride, as well as its unbending focus on innovation.

“Apex Cordset Technologies

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commits to constantly evolve the cable industry, befitting all walks of life with quality products, backed by excellent service with our foundation in manufacturing expertise,” it says of an approach which really does cater for every person and every application, a peerless product range paired with a consideration of the needs of all consumers.

Staffed by more than 500 highly skilled personnel, the company possesses the expertise and capacity to provide customers with value-formoney, tailor-made products and exceptional lead times, manufacturing in excess of 120,000 plugs per day.

“To realise our vision,” APEX expands upon its future thinking, “we will need to adopt leading wire processing technology, provide a diversified product range of the highest quality and delivery at the fastest possible turnaround times.”

APEX assures that such lofty aims are continually reached by an unflinching adherence to an exhaustive set of core principles. A passion for quality and quality standards is arguably

// WE HAVE HIGH STANDARDS, AND OUR GOAL IS TO SELL THE HIGHEST QUALITY PRODUCTS WE POSSIBLY CAN // most significant, ensuring products to be compliant and of the top standard for the intended market. “We have high standards, and our goal is to sell the highest quality products we possibly can,” APEX offers.

Paramount in APEX’s priorities is customer satisfaction, and making sure that they feel valued. The company adopts an approach to its work that is informed, knowledgebased and constantly demonstrates professionalism in all it does, through competence, flexibility and efficiency.

“We go to extraordinary lengths to satisfy and delight our customers. We want to exceed their expectations every time they place an order with us.”

APEX CORDSET TECHNOLOGIES

SERVING THE EAST RAND SINCE 1975

We stock a large variety of steel products, square tubing, round tubing, rectangular tubing, flat bar, angle iron, beams, channels, sheets and plates and fencing materials. As well as aluminum, bright and stainless steel products.

Building… Bring us your cutting and bending schedule for a quote!

We also have an industrial hardware which stocks anything from welding equipment, safety gear, fasteners, bolts & nuts, cutting discs, paint, gate automation, ornamental steel and castings, security products, electrical and plumbing products.

www.steelmate.co.za

CRUCIAL APPLICATIONS Manufacturing in South Africa continues to experience real challenge, with fin24 reporting a decline in production for the consecutive month in September. Manufacturing production fell by 2.4% in September 2019 when compared with September 2018, a decrease well above the estimates of analysts, and by the same percentage on a monthly basis between August and September.

Of the 10 manufacturing divisions that the index tracks, only food and beverages showed positive annual growth of 2.8%. The largest annual decline was in the glass and nonmetallic mineral products sector, which decreased by 6.7%. Despite the apparent gloom, though, Business Day has pegged manufacturing as a ‘sunrise sector’ for South Africa.

sales@steelmate.co.za

It highlights its abundant potential to create jobs which could utilise the skills of 9.6 million currently unemployed South Africans, also pinpointing the lowering of corporate tax for manufacturers to 15%, conditional on a percentage of turnover being re-invested in capacity that expands production.

APEX has remained successful and productive throughout this period of austerity for SA manufacturing, expanding its facilities and product lines while so many have faltered and failed.

It is of course a combination of factors which have bred success in the face of adversity, but it is surely the range of applications of APEX products in vital settings which is chief among them.

The expanding population and growing reliance on technology and power is seeing Apex Cordset

011 897 8960

Technologies busier than ever. It might be deep underground in a gold mine, where a detonator cable is laid to extract the metal to build cities, countries and global economies.

A machine in neonatal ICU helps a premature baby to survive and flourish, while in offices the world over business is conducted, monitored, researched and recorded by computers.

“Almost every hour of the day we take our connection with power entirely for granted,” APEX reminds us. “From the explosive drama of saving lives to the soothing hum and reassuring purr of the daily routine, staying connected is what keeps our world ticking over.”

WWW.APEX-LEADS.CO.ZA

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DEFY APPLIANCES Hot Investments Provide Perfect

Recipe for Defy Success PRODUCTION: Karl Pietersen

A new Gauteng service centre, a new KZN production investment, and further spend planned for the future, Defy Appliances is a manufacturing stalwart that has been delivering pride for South Africans for more than a century. www.enterprise-africa.net / 49

INDUSTRY FOCUS: MANUFACTURING

//

Defy Appliances in South Africa is a shining example of what a sustainable, highquality, in demand manufacturing operation looks like. Operating in the country since 1905, the past 114 years have seen Defy grow from pioneering electric stove manufacturer to become the largest manufacturer and distributor of major domestic appliances.

The company now operates from three ISO 9001-2009 accredited facilities in Jacobs, Ezakheni and East London. Its range has grown from cooking equipment and now incorporates a bulging range of kitchen and other household appliances. Not just the best in South Africa, Defy’s products are recognised as continental leaders and, in some cases, global standard setters.

Whether it’s an oven, hob, fridge, freezer, microwave, kettle, toaster, dishwasher, tumble dryer, cooker hood or something else, Defy has a network of sales and servicing centres

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countrywide, and is also available through several major retail chains, and numerous other businesses.

In 2011, the company was acquired by Turkey-based Arcelik Group, a global leader in the manufacture of white goods and other electrical appliances. This milestone allowed Defy Appliances to kick into top gear, becoming the undoubted industry leader in South Africa.

“This was not just a sale but an investment, one that made Defy stronger and more innovative,” the company says.

TOP OF THE RANGE Second half year results for retailers active in the kitchen and home appliance sector are often buoyed by the hysteria of Black Friday – a shopping concept which has taken South Africa by force over the past decade. Offering discounts in order to clear backstock before Christmas and the New Year, customers flock onto shop floors and websites in

hope of a bargain – and Defy offers just that. But, even if you picked up a Defy product for slightly cheaper than

// DEFY HAS A PASSION TO SET HIGHER STANDARDS FOR CUSTOMER SATISFACTION IN ALL OF OUR OPERATIONS AND WITH THE OPENING OF OUR FIRST AUTHORIZED SERVICE CENTRE WE ARE SETTING A NEW VISION FOR SOUTH AFRICAN HOME APPLIANCE MARKET //

DEFY APPLIANCES

normal this year, you can rest assured that quality is never below par.

“Defy’s Cooking Appliance Range is at the heart of our business, bringing style to the ritual of baking and excitement to the idea of preparing a family feast in your home,” the company says. “Our Gemini Collection boasts a sleek and sophisticated new design, coupled with Feast Master capacity, ideal for bulk cooking. Defy’s signature ThermoFan™ Technology allows you to use both baking trays at the same time, cooking multiple dishes simultaneously without any flavour or aroma transfer.”

In the kitchen, Defy is king and most families could prepare an entire meal from start to finish using nothing but Defy products.

“Defy has recently included a stylish range of small domestic appliance which includes a range of blenders, juicers and coffee makers,” the company details.

Taking the daily frustration out of what should be simple tasks is where Defy thrives.

“Our Cooling range has extensive range of No Frost fridges which offers both Dual Cooling technology (which basically means there is fan in the fridge for greater humidity control – better energy efficiency, better odour control, fresher food for longer) and a 4 star freezer.”

Defy offers the largest capacity fridge in the market and utilises blue light technology which helps to extend the life of fresh produce.

“All Defy units offer an Auto Defrost fridge section, allows even static units to automatically drain any excess liquid through the back. Defy’s well-renowned chest freezer range offers a multi-mode function, allowing you the freedom to convert your unit between a fridge, chiller and freezer.”

Equally, laundry and washing are rexamined by Defy and redesigned to achieve superior results.

“Our laundry range boasts Aquafusion™ technology in our front

loaders which maximises washing power efficiency ensuring you get the most out of your detergent.

Surf’s up with Defy Aquawave™ drum technology in both top and front loaders. The technology aids in more effective washing.”

The company also supports its brand position further through its own sales, warehousing, and distribution and after sales service functions.

Who would have thought so much could come from a business which started life, under the name the Hollow Block Syndicate, manufacturing bricks and three-legged pots?

“Very few brands have stood the test of time like Defy. For more than a century, we have created beautiful memories for millions of households,” confirms Defy. “At Defy, the consumer is at the heart of everything we do.”

ONGOING INVESTMENT In April, Defy along with parent Arcelik celebrated success in South Africa, opening new regional offices in Johannesburg and launching a new brownfield development at the company’s plant in Durban.

In Gauteng, the Defy offices from Pretoria and Denver were combined to create a single, centralised sales and service office in Midrand. The new centre boasts an expanded call centre, a world-class showroom, a new 100-seater auditorium for customer and stakeholder engagement, as well as a new refurbishment centre created to repair damaged units and resell them.

The new centre began by employing 184 people on site.

At Jacobs, in KZN, the new manufacturing facility was designed

WWW.DBLACK.CO.ZA 300 JACOBS ROAD, JACOBS, 4052 TEL : 031-4656400 ELSIE@DBLACK.CO.ZA

PROUD SUPPLIER OF QUALITY METAL PRESSED COMPONENTS TO DEFY APPLIANCES FOR OVER 40 YEARS

www.enterprise-africa.net / 51

INDUSTRY FOCUS: MANUFACTURING

to grow Defy’s capacity for top loading washing machines.

The development, reported as R121 million, is part of a wider investment strategy that will see the group invest around R1 billion over the next five to seven years.

Defy infrastructure is ready for investment, with many buildings across its three main sites dated and at capacity. Countries including India, Bangladesh, Paraguay and Sri Lanka have already placed orders for products coming from the new lines, and the company wants to continue with its export growth while investing in growing capacity.

“We are a favourite in SA homes

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and number one in cooling, cooking, laundry, chest freezers, microwaves, built in tumble dryers and cookers, and cooking hoods. There is no limit to what is possible when you consistently strive for excellence,” the company says.

More recently, in Durban, in November, Defy announced further investment when it launched its first authorised service centre in the city, in partnership with Timberstar.

The centre provides both business and personal as well as retailers with access to qualified technicians, original parts and state-of-the-art technology for repairs and upgrades.

“Defy has a passion to set higher

// IT IS OF HUGE IMPORTANCE THAT DEFY, AS AN ORGANISATION, CONSISTENTLY GIVES BACK TO OUR COMMUNITIES // standards for customer satisfaction in all of our operations and with the opening of our first authorized service centre we are setting a new vision for South African home appliance market. Defy and Timberstar will

DEFY APPLIANCES

work together to roll out this passion and dedication of getting closer to our customers by delivering world class after sales service,” said by Evren Albas, Regional Director of Arcelik A.S. in sub-Sahara and CEO of Defy Appliances in South Africa.

“We believe that this business model is also a very good role model for

// DEFY’S COOKING APPLIANCE RANGE IS AT THE HEART OF OUR BUSINESS, BRINGING STYLE TO THE RITUAL OF BAKING AND EXCITEMENT TO THE IDEA OF PREPARING A FAMILY FEAST IN YOUR HOME //

Enterprise Development initiative for South Africa. We hope to see opening more authorised service centres with exactly the same format across the country in cooperation with our service and trade partners.”

Richard Bunting (Head of Sales at Defy) highlighted: “It is important that we understand fully just how vital service delivery has become from an appliance manufacturing point of view to bring a one-stop service experience to our valued customers.”

DOING ITS PART In September, Defy initiated a CSI project alongside the non-profit organisation Cupcakes of Hope and Metro FM to help make a difference in the lives of needy children in South Africa. The initiative is aimed at raising funds and awareness around childhood cancer and supporting families who need help with medical fees. The concept involved encouraging people to get out and bake sweet treats while

engaging with Defy on social media.

Defy would then donate funds based on every engagement received.

“It is of huge importance that Defy, as an organisation, consistently gives back to our communities. Partnering with Cupcakes of Hope to further their on-going commitment to deliver hope across the nation enables us to do our part in making a difference,” said Rajan Gungiah, Regional Marketing Director at Defy sub-Saharan Africa.

In the economic climate present across southern Africa right now – especially in the manufacturing sector - Defy Appliances stands as a shining example of what is possible when investment, desire for quality, and customer needs are put at the forefront of everything that is done.

WWW.DEFY.CO.ZA

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BROLL

When The Going

Gets Tough...

PRODUCTION: Colin Chinery

These are hard times in the commercial property market, and pan-Africa’s largest property services company, Sandton-based Broll Property Group, is hitting back with new technology and sharpened client-focused strategies.

“You have to be tougher than the circumstances you find yourself in,” says Nkuli Bogopa, Managing Director of Broll’s Investor Services.

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INDUSTRY FOCUS: PROPERTY

//

South Africa’s listed property market is stuck deep in the ruts of a challenging landscape.

The environment is tough, there’s pushback on pricing, deals have mostly dried up, vacancies are rising and lease renewals challenging.

It’s a situation that finds Nkuli Bogopa, Managing Director of Investor Services at the Broll Property Group, resolute and quietly positive.

“You have to be tougher than the circumstances you find yourself in,” she says.

As the largest independent panAfrican commercial property services company, with offices in the major cities of South Africa and operations in 16 other sub-Saharan countries, Broll lives at the coal face.

Founded in 1975, the Sandtonheadquartered business is delivering solutions to achieve value and improved profitability to over 21m m2 of occupied space, 12m m2 of managed facilities and 7.5m m2 of managed property assets.

WIDE SPAN: BIG NUMBERS It is a highly integrated operation, with a hands-on management and staff of 2300 overseeing a portfolio including property broking, valuation and advisory services, shopping centre management and retail leasing as well as occupier services.

The rollcall of numbers is hugely impressive; 400-plus shopping centres, 30,000 tenants, and 6000 leases concluded in the last 12 months.

But it’s a bruising, competitive environment, one in which Broll is responding with a series of strategic fine-tunings, including advanced

// THE TENANT IS KEY, AND WE WANT A FOCUS ON THE TENANT’S EXPERIENCE // 56 / www.enterprise-africa.net

in-house IT, greater leverage, and increasing an already storing focus on client-specific solutions and support.

“We must constantly ensure that we are working closely with our clients, understanding and looking after their needs, and constantly re-inventing ourselves in terms of our service offering.”

With a flat management structure, it’s an offering streamlined by a culture of fast decision making. Bogopa, Director of Investor Services for the past 13 months, explains.

“While I am MD of the Property Management division, I have an executive team reporting to me, and decision making regarding what is going in the various portfolios is generally discussed and agreed upon centrally, rather than in one place.

// MORE THAN INVESTIGATING NEW TERRITORIES, WE ARE LOOKING TO FURTHER PENETRATE THOSE TERRITORIES WE ARE ALREADY IN //

CLOSE CLIENT INTERACTION “As the CEO, Malcolm Horne is very involved, with an on-the-ground ear in terms of what is happening throughout the organisation and close interaction with clients. We don’t want to lose touch with our clients, something we feel very strongly about.

“The other major new input is increasing the leverage from all divisions, along with the key capabilities and facilities lying within the organisation.”

The sweep and depth of the Broll portfolio is also seen as a potent new business driver. “It’s a great strength and we are using it.

“When presenting to a client, we can say that while we can take care of your property management needs, we have equal strengths and capabilities in other related areas such as facilities management, valuations, and occupier service management.

“As a business it’s forcing us to make sure we are providing comprehensive solutioning for a client.”

While the client list includes top names, Broll is a brand for all sizes.

“We enjoy a number of Blue-Chip companies and look to expanding in this segment - not least because this re-

IT BREAKTHROUGH Nearly two decades ago Broll moved to develop an in-house IT system that enables its development team to analyse and make up for the gaps in bought-in competitor systems. Such is its success that Broll is now selling the software as a stand-alone service.

“Among the benefits this has brought is greater flexibility and the opportunity to white label and customise the system to suite our clients,” says Bogopa.

“It also reduces our costs, and makes it easier to track what is going on in terms of procurement spend in maintenance and repairs. Improved efficiency is always something we are looking for on an on-going basis.”

Turning to the challenging climate of the property sector, she says many companies - “to save a few bucks” - are taking their business away from specialists and turning to insourcing, sometimes to return.

“It’s a cyclical trend, something that happens in our life-cycle, and it’s prevailing at the present time.”

Another current trend is the increasing time being taken for decision taking, with the development landscape the longest to see through.

enforces our credibility and capabilities.

“But in the times we are in, Blue-Chip companies are not our only focus. We also have a lot of individual investors who are much smaller in nature, and we value their business equally. At a time like this, any business is good business.”

INDUSTRY FOCUS: PROPERTY

THE FUNDING FACTOR “Development relies on factors such as feasibility and funding. When funding comes through, the landscape changes, only to change again if you are unable to secure and hold on to tenants while you are waiting for the funding to be approved.”

And tenancy retention and income are now major issues. “We are seeing reversions of rental which means the big national tenants for example, are becoming stronger in terms of their negotiations, which are now very vigorous. So our landlords have to be a lot more flexible and amenable.

“We are also seeing the whole dearth of the office market. It’s a real problem, and one I don’t thing is going to change. For the foreseeable future it will continue to wind down.”

Broll’s response here as elsewhere, is a heightened attention to circumstance, need, and state-of-art technology.

“There is now a priority for a focused attention on tenants, and what actually

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works for them in their buildings.

“That whole tenant experience is critical, and we are gearing ourselves up from a customer-centric point of view with regard to our technology, mobile apps and so forth.”

From a tenant inter-action point of view, she believes this will make it easier to do business with Broll. “For example, a call-centre will allow a tenant to call indirectly and say, ‘I have a problem; can you resolve it?’

“The tenant is key, and we want a focus on the tenant’s experience.

With the volume of vacancies we are seeing, and the difficulties in filling those gaps, retention of those tenants becomes central.”

BRAND CONSCIOUSNESS While Broll’s exceptional resource and reputation make for a strong brand asset in hard times, Bogopa enters a note of caution.

“It can also lead to complacency.

We must not come across as arrogant,

// YOU HAVE TO BE TOUGHER THAN THE CIRCUMSTANCES YOU FIND YOURSELF IN // we have been in the business for a long time and there is a lot of competition.

“So we are acutely aware that while our long establishment has been a strength, it cannot be the only one we rely on.”

Brand strength was enhanced six months ago when the Broll Property Group entered into an exclusive affiliate arrangement with Cushman and Wakefield, the Chicagoheadquartered leading global real estate services company.

The partnership will provide clients with an integrated platform covering the entire sub-Saharan Africa region, optimising Broll’s knowledge of the African markets with the weight and expertise of a global player – “integrated

BROLL

access to a phenomenal global platform,” said CEO Malcolm Horne.

Dominant in South Africa and a major player in 15 African countries, might this mean Broll will be looking to add to its geographical portfolio?

“More than investigating new territories, we are looking to further penetrate those territories we are already in, where we are not currently offering a full suite of services,” says Bogopa “We are already doing business with them from a valuation point of view, but we have not expanded the service offering of property and facilities management, and these are the areas we will be focusing on in the next year, and where we see the opportunity.”

RISING STAR Listed in Forbes Africa 2013 as one of South Africa’s young talent to watch, following her nomination as a Rising Star in the Mining and Industrial Sector – she was at the time Group Property Manager at Rio Tinto – and

currently leading the South African Institute of Black Property Practitioners, Bogopa says her role as Managing Director of Investor Services places her in an environment with a strong entrepreneurial spirit - “one that challenges you in your overall thinking.

“I have previously been involved in very technically specific fields, and my role here is an over-arching business management. It’s a challenge I am enjoying.”

With the South African economic outlook for 2020 gloomy, it’s part of a wider challenge that Africa’s most advanced nation cannot shirk.

GDP is shrinking, the economy is stagnant, there’s a substantial budget deficit and state-owned enterprises are failing.

THE POWER OF POSITIVE THINKING And yet? Global research released by YouGov in September showed 64% of South Africans view themselves as optimists, 8% above the global

average. Positivity is clearly a musthave national resource.

“We definitely have a positive outlook,” says Bogopa, “and we have been able to sustain ourselves in terms of the numbers we employ.

“Tough times require one to become more resilient, and resilience is something we drill into our teams and the management of the organisation.

You have to be tougher than the circumstances you find yourself in.”

The arrival of a new President has given a “glimpse of optimism for a new type of economic outlook coming through.

“It’s about re-inventing yourself in difficult times, and maybe the success of the Springboks in the Rugby World Cup and the crowning of Zozibini Tunzi as Miss Universe has given us a new kind of hope!”

WWW.BROLL.COM

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ANGOR PROPERTY SPECIALISTS

ANGOR Remains Residential

Hot Property PRODUCTION: Timothy Reeder

Established in 1998, ANGOR Property Specialists dwells among the leading Property Managing Agents in South Africa. Its managed rental division manages hundreds of properties on behalf of property investors, while highly skilled agents offer a peerless sales service to clients in ANGOR’s focus areas of the Northern Suburbs of Johannesburg and Sandton. “We manage over 45,000 units in over 450 complexes and estates,” ANGOR outlines. “We are one of the largest managing agents in South Africa.”

//

Having last year celebrated the 20th anniversary of the renowned quality and reliability it brings to clients, ANGOR Property Specialists, founded as a family business offering various property services, is

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now one of the country’s go-to names in property management. The company expanded quickly in its nascent years, growing its staff base and reputation until 2009, when it was taken over by new management.

Since this milestone ANGOR has extended its footprint significantly across South Africa, now managing property throughout Gauteng, KZN and the Western Cape. The company is responsible for the management

Sandton Emperor

INDUSTRY FOCUS: PROPERTY

of over 45,000 Sectional Title and Homeowner’s Association units in over 450 schemes, with a combined worth in excess of R40 billion.

“We are extremely proud and we feel very blessed,” effused Executive Director, Dennis Flammer, in 2018. “I think we’ve got a great team of people here and we are very happy to be in the industry we are in.” Flammer was part of the team which oversaw the purchase of ANGOR in 2009 and he clarifies that a burning priority was to expand the company’s reach.

“Initially the business was predominantly in the Johannesburg area,” he set out, “and many of our clients are still in Gauteng, but we have started to grow our reach in the other provinces.

“For the last couple of years, we have been exploring opportunities in the Western Cape,” Flammer continued.

IN SAFE HANDS When clients are looking for a new managing agent for their complex, it is imperative to know that such complex funds are in safe hands and being taken on by an experienced, committed team of specialists. ANGOR sets itself apart through its unique practices, and the combined weight of the assets it is entrusted to manage.

The Nicol

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“We’re one of only a handful of Property Management companies in Gauteng which operate a completely separate trust account for each of our managed complexes or estates,” ANGOR explains. “An individual trust account offers multiple benefits to our clients, the most important of which is complete transparency.

“Our online facility allows Directors and Trustees to access monthly bank statements, creditor documents, budgets and financial statements at any time.”

This all-important, but sadly often lacking transparency is one of the crucial factors in gaining client’s trust and security. It prevents the possibility of payments appearing on disbursement statements but not actually being made, which ANGOR points out was one of the major issues uncovered when the many Estate Management Agents placed under liquidation in recent years.

“Our process is so transparent that this cannot happen, and our individual trust accounts allow Home Owners Association Directors and Body Corporate Trustees full access to bank statements and reports.” Fully compliant with Estate Agency Affairs Board, ANGOR too maintains Fidelity

// OUR EXCLUSIVE ONLINE FACILITY OFFERS TRUSTEES AND DIRECTORS A VAST MINE OF UP TO DATE INFORMATION // Fund Insurance across its trust funds, with additional insurance of R1 million additional insurance.

ANGOR Online is the company’s crowning glory, bringing together the very best of ANGOR in a slick and comprehensive package, as it describes.

“Our exclusive online facility offers Trustees and Directors a vast mine of up to date information. At their convenience and from anywhere in the world, Trustees and Directors are able to access all documents pertaining to the management of the scheme through our website and app.”

SHOOTS OF RECOVERY The South African property market has been a tremendously difficult space in which to operate in recent months, and has required all of ANGOR’s skill and experience to stay afloat amid the

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many challenges. “House prices in South Africa have continued to drop when corrected for inflation,” stated Business Report in November, “even though the average home price percentage lent by banks and the volume of mortgages transactions were at historical high levels in the second quarter of 2019.

“The loan-to-purchase-price reached 90.6% in the second quarter of this year –improving from an average of 88% in the second quarter of 2017–, becoming the highest level in more than a decade, the First National Bank Property Barometer showed.”

The value of home loans also grew fast, with the FNB Property Barometer showing that the total value of mortgages provided to South Africans grew by 4.3% in the first half of 2019, compared to 3.4% for the same period in 2018 - the highest growth in almost a

decade, since November 2010.

The combination of a high loanto-purchase-price proportion and the swelling value of home loans equates to a higher number of South Africans signing up for bigger and more loans, in turn injecting liquidity into and supporting the residential property market. In short, there has been not only a small growth in the volume of mortgage transactions, but lenders are also prepared to finance a bigger percentage of the purchase price.

Indicators point to a narrowing demand-supply gap, and this is all great news for ANGOR’s continued success.

“Banks are making it easier for first-time buyers to enter the market,” said CEO of Ooba, South African home loan exerts, Rhys Dyer. “Some are even prepared to offer home loans exceeding 100% of the purchase price to help cover transfer

and bond registration costs.”

In Johannesburg specifically, a key focus area for ANGOR, optimism is high with the advent of a new political era, producing positive forecasts after a period of slowing growth. According to Andrew Golding, chief executive of Pam Golding Properties: “The generally market-friendly result will in all likelihood create a degree of certainty and go some way towards addressing the issues currently affecting confidence in the South African economy.

“As a consequence, this will have a positive effect on the South African residential property market.”

WWW.ANGOR.CO.ZA

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AFHCO

Real Solutions

to Johannesburg’s Housing Crisis PRODUCTION: William Denstone

Since its founding in 1996 Afhco has remained the leading developer and investor in affordable housing and commercial property in the Johannesburg inner-city. Numerous factors such as the shortage of suitable affordable housing, growing disposable income in the emerging market and changing population demographics present unique opportunities as it looks to spread its reach throughout Sub-Saharan Africa.

//

The lack of affordable housing in South Africa is a well-documented problem; at the close of 2018 fin24 reported that the housing backlog stood at 2.3 million houses, a figure growing by around 178,000 houses each year. Despite various schemes and initiatives neither the public both the formal private sector continue to have difficulty in closing this gap.

The protests over housing shortages in Gauteng, South Africa’s richest province and economic hub, will live long in the memory, and succeeded in putting the spotlight on a problem which can see people languishing on housing waiting lists for many years.

64 / www.enterprise-africa.net

INNOVATION IS KEY South Africa’s mass housing programme has been hugely successful since democracy in 1994 in terms of the number of houses built: the Reconstruction and Development Programme has seen nearly four million “housing opportunities” – serviced stands, houses or social housing units – supplied. What has yet to be addressed is the issues arising from the supply of houses being unable to keep up with the increase in demand in urban areas.

“The government’s approach,” wrote The Conversation in 2017, “has given rise to rows upon rows of ‘one-size-fits all’ houses located at the periphery of cities, far from work opportunities and services, reinforcing

apartheid’s spatial patterns.

“While it’s acknowledged that the country must think beyond free houses, and that sustainable human settlements must include socio-cultural amenities and jobs, not much has been done to make this a reality.” Johannesburg’s inner-city area is a prime example of somewhere whose deficit needs urgent attention. Huge demand for accommodation from all sectors of society is not met with sustainable and quality supply, pushing prices up and leaving many in need.

“Less known are the innovative approaches emerging in the rental housing space, and particularly in townships,” remarked fin24, “where property entrepreneurs are quietly

Jeppe Street PO

INDUSTRY FOCUS: PROPERTY

getting on with the business of building houses for people who need a roof over their heads – often with minimal support from financial institutions, investors and the formal real estate sector.”

Afhco has been one of the firms leading this charge in South Africa, whose formation was driven in large part by a desire to do something about this grave, and worsening, situation.

It has been working to deliver an affordable, safe, quality lifestyle to

// TOGETHER WITH SACORP, THE GROUP WILL CONTINUE TO DEVELOP AND ACQUIRE SUITABLE BUILDINGS //

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Johannesburg’s inner-city for more than 20 years now, since its establishment by entrepreneur Wayne Plit back in 1996.

From identifying profitable emerging trends in Johannesburg to expertly managing over 8000 residential and commercial property units, Afhco’s residential units are stylish but affordable and its retail space provides opportunities for a range of commercial traders.

BRINGING ABOUT CHANGE The stock of empty buildings left in Johannesburg in the wake of the 1994 election looked to Wayne Plit like a perfect starting point in solving the housing shortage.

He acquired some buildings and existing residential stock, repurposed and refurbished them into quality residential space and began selling units to end users who were unable to obtain finance from banks for the

purchase of property in the inner-city.

“There were so many vacant buildings in the inner-city, which was essentially the business hub of South Africa, and some had become hijacked and others had fallen into a state of disrepair,” Afhco Property Management Managing Director, Kevin van den Heever, told us last year.

“In the early 2000s, Plit started the first conversion from open commercial to residential, a building called Castle Mansions. That is what started the trajectory of the business to where it has ended up today.”

Today, Afhco transforms old, unused, derelict and even destitute buildings that blight the landscape of Johannesburg into quality rental accommodation. These are of a higher quality than almost every other company operating in the inner-city, van den Heever explained.

“We like to think our newer units

AFHCO

Somkhanda Projects Proudly supporting Afhco Contact Elvis or Paul Gumbi on 083 210 8841 or email: somkhandaprojects7@gmail.com

// OUR NEWER UNITS ARE A CUT ABOVE WHAT MOST PLAYERS DO IN THE INNER-CITY // are a cut above what most players do in the inner-city. There are many new entrants in the market who have a certain amount of capital for projects and it just isn’t the same level as us. Our buildings often have more amenities and we are looking at putting in free Wi-Fi where others could not afford to do this.”

TANGIBLE EFFECTS The impact that Afhco’s endeavours have had on the housing backlog is tangible.

“As we sit today, we have approximately 6500 rental units in the

Johannesburg CBD and a further 2500 in suburban areas, mainly in Gauteng but we do have other assets in Cape Town and the mining town of Steelpoort,” said van den Heever.

The company’s influence does not stop there, however. The latest demonstration of its strong sense of social responsibility is in collaboration with Sowetan and Sunday World, to award one undergraduate a R50,000 bursary, paid directly to either University of Johannesburg or Wits University and wiping the recipient’s accommodation bills.

“A strategic imperative of Afhco has been social upliftment, community development and inner-city regeneration,” the company finishes, and this translates both the people and property. “The Afhco Group is extremely optimistic about the ongoing growth of

its market and its ability to fund future expansion throughout South Africa and Sub-Saharan Africa,” it continues of what is next for the pioneers.

“The Afhco Group was acquired in July 2014 by SA Corporate Retail, a Real Estate Investment Trust listed on the JSE. Together with SACORP, the Group will continue to develop and acquire suitable buildings. The underlying foundation of the Afhco business philosophy is that morality, ethics and empathy do not detract from doing good business.”

WWW.AFHCO.CO.ZA

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CENTURY PROPERTY DEVELOPMENTS

Sustainable Property Development

Done Properly PRODUCTION: Timothy Reeder

Century Property Developments began life in 1975 primarily as a developer of shopping centres, but over the course of its near half-century of operations has diversified into exclusive residential estates and commercial developments. The industry as a whole is poised to embrace sustainability more than ever which, alongside a uniquely South African approach, puts Century Property Developments in an industry-leading position. www.enterprise-africa.net / 69

INDUSTRY FOCUS: PROPERTY

//

Century Property Developments has undertaken a number of the key South African projects in recent memory, and on each occasion has delivered to investors a valuable asset of enduring quality and integrity. The company combines a deep and peerless understanding of South Africa’s unique context with its founding principles of financial feasibility and sustainability.

A CLASS APART What helps to set Century Property Development’s product apart from the rest is exactly this appreciation of its heritage, which incorporates uniquely South African architecture, indigenous landscaping, state-of-the-art security and a renowned green approach.

Alongside Century Property Development’s design and aesthetic vision, this is a company fully equipped to offer the very best in property investment opportunities. It has built up a proven track record of

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numerous residential and commercial developments, delivering a superior product to residents and investors and established high returns on investment.

In a sea of residential, estate and commercial high points, it is Century Property Development’s association with the Waterfall Estate which has bought perhaps most accolades over the years. Found mid-way between Johannesburg and Pretoria, on a 2200-hectare tract of land between Woodmead, Kyalami and Midrand, the Waterfall development is setting a new standard at the nexus of a growing residential and commercial node in Gauteng.

Century Property Developments proudly lists many aspects of the Waterfall complex among its enviable portfolio. The Villas, Waterfall, is made up of three-bedroom houses designed around the development’s spectacular views, with large en-suite bedrooms, open plan living areas and private gardens with swimming pools.

Located adjacent to Waterfall City, Waterfall Country Estate and Village is a sought-after lifestyle estate offering residents an upmarket, secure and spacious environment with world class facilities. The upmarket units that are up Waterfall Crescent, meanwhile, give the opportunity to live in Waterfall and fully benefit from the lifestyle that Waterfall offers.

So highly-regarded is Waterfall that it has scooped the International Property Award’s prize for Best International Mixed-Use Development two years running. The awards recognise the very best projects and professionals in the industry worldwide, across Asia Pacific, Africa and Arabia, Europe, USA and the UK. By its scheduled 2027 completion, the Waterfall development will combine 28,000 residential units housing an estimated 80,000 people, with approximately 1.6 million square metres of Gross Leasable Area for commercial and office space.

CENTURY PROPERTY DEVELOPMENTS

SUSTAINABLE FUTURE Some of Century Property Development’s most significant successes have been in the field of its commercial developments. Take Fourways Johannesburg’s sprawling Riversands Commercial Park, the near quarter-million-hectare development poised to set the benchmark for corporate parks in South Africa. Its location means that this development is positioned to offer tenants the very best in retail, light industrial and commercial business premises.

Riversands is attracting a wide range of high-end businesses, making it a key focus area for strategic investments in the north and will see it catalyse far more economic and social development.

Linksfield is another massive integrated mixed-use development,

which will again form the hub for a new economic node and of which light industrial and commercial areas are central features. Embodying the kind of ambition and scope for which Century Property Developments has come to be famed, it is envisioned that this development mark the beginning of a new era of lifestyle for South Africans: a multi class, multi-racial working and living environment.

Century Property Development’s decades of experience and resulting expertise in the commercial domain, combined with such a strong focus on sustainability, should see it perfectly placed to build on its success in the years to come. This is certainly the opinion of specialist banking and asset management group Investec, which recognises the robust returns returned by the commercial property

// THE NEXT WAVE OF AFRICAN PROPERTY DEVELOPMENT AND INVESTMENT WILL BE LESS SHORT-TERM AND OPPORTUNISTIC // sector to institutional investors over the last 15 years.

“We’ve realised phenomenal capital growth on the back of strong asset appreciation and rental increases that have kept pace with inflation,” says Darryl Mayers, Joint-CEO of the Investec Property Fund.

“By leveraging time and inflation, this asset class has outperformed just

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// WE ARE SEEING MORE FUNDS AND DEVELOPERS FORMING JOINT VENTURES AND USING THE EXPERIENCE OF LOCAL DEVELOPERS TO DELIVER BETTER AND MORE SUSTAINABLE PROJECTS // about everything else in the local market over this period,” adds Joint-CEO of the Investec Property Fund, Andrew Wooler. Among institutional-grade commercial properties, Wooler expands

that retail was a standout performer for fund managers and investors.

Firmly positioning Century Property Developments for further glory to add to its decorated history, eProperty News points out that, “the past decade has seen South African property developers and investors forge their way up the African continent and then pull back.

As they withdraw, a new wave of property progress is building – a more sustainable one - without them.”

Ever since its nascent days, this has been one of the pillars on which Century Property Developments has been built, and Standard Bank’s Head of Estate Finance, African Regions Niyi Adeleye, underlined its importance in the industry moving forward. “The precise timing is hard to predict but the next wave of African property development and investment will be less short-term and opportunistic,” he explained.

“There’ll be a more sustainable approach that creates products that really serve their markets and make sense in their context.”

Kfir Rusin, Managing Director of API Events which hosted the API Summit, the major industry event on African real estate for South Africa and globally, affirmed this belief.

“We are seeing more funds and developers forming joint ventures and using the experience of local developers to deliver better and more sustainable projects,” he posited, which can surely only spell success for Century Property Developments and its guiding philosophy.

WWW.CENTURY.CO.ZA

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ANGLO AMERICAN PLATINUM

Strong, Shining &

Responsible PRODUCTION: Karl Pietersen

Production and finances are strong at Anglo American Platinum. The company has also started the process of being audited by the Initiative for Responsible Mining Assurance’s (IRMA) ‘Standard for Responsible Mining’ in Zimbabwe.

Combine this with the news of a newly agreed wage deal with unions and you have a business with much to be excited about in the future.

74 / www.enterprise-africa.net

Š Anglo American - Polokwane Smelter

INDUSTRY FOCUS: MINING

//

Most know platinum as the valuable silver-coloured metal used to forge jewellery including rings and necklaces. But platinum is so much more than decorative; it is in fact one of the most important precious metals in the world. With the chemical symbol Pt and atomic number 78, this noble metal is popular because of its strength resisting corrosion. Today, platinum’s most important use is in vehicles as a catalytic convertor.

Discovered in South Africa in 1924 in the Bushveld Igneous Complex, platinum is now one of the country’s chief exports and South Africa is the world’s largest producer, exporting around a quarter of total global exports in 2018.

The clear-cut industry leader in this space is Anglo American Platinum, a business rooted in South Africa and recognised as the world’s largest primary producer of platinum group metals, offering up more than 35% of the world’s annual supply.

Established in 1995 in its current form, and part of the wider JSE and LSE-listed Anglo American group which is more than 100 years old,

// THIS IS VERY MUCH A STRONGER BUSINESS TODAY BECAUSE OF THE ACTIONS WE HAVE TAKEN IN RECENT YEARS AND I’M PLEASED TO SAY THAT THERE ARE FURTHER OPPORTUNITIES TO UNLOCK THE FULL POTENTIAL FROM OUR OPERATIONS // 76 / www.enterprise-africa.net

Anglo American Platinum employs some 30,000 people across various divisions and mining operations.

2019 has been a turbulent year for the company, characterised by both highs and lows. Decent financial and production results, along with global recognition for responsible mining, have been diluted by the threat of strikes which could damage the reputation of the miner, already hurt by strikes of 2012 and 2014.

But, with looming industrial action now seemingly averted, the time for Anglo American Platinum to push forward is here. In November, the company signed a three-year wage agreement with the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM) and UASA – The Union (UASA) which would see employees receive an annual increase of R1000 per month in basic pay in years one, two and three for bargaining unit employees, or 5.5%, whichever is greater for each year of the agreement. In addition, the base on which salary-related allowances and pension contributions are calculated will increase over the three-year period to bring it back in line with basic wages; and an ex-gratia payment of R1000 in July 2020 and R1500 in July 2021 will be delivered.

For Anglo American Platinum, this change results in an increase of the total labour cost-to-company of 7.4% in year one, 6.1% in year two and 6.3% in year three - 6.6% on average over the three years.

“We are very pleased to have reached an agreement, and we welcome the collaborative and constructive engagements with the unions throughout the process,” said Chris Griffith, CEO of Anglo American Platinum. “We believe this agreement will ensure the business can remain sustainable through the typical PGM price cycles, while our employees will benefit from meaningful pay and other increases.”

RESPONSIBLE MINING In May 2019, Anglo American Platinum opened its new smelter at the Unki Mine in Zimbabwe. This customdesigned, cost-efficient facility is set up to meet the current output at Unki but can be upgraded in the future should the need arise. The equipment smelts Unki concentrate resulting in furnace matte which is crushed and then moved to South Africa for further processing. Construction was announced back in 2015 and heat up began in August 2018.

Upon opening, Unki Mines Chairman James Maposa said: “The Unki smelter is a strategic investment for our company and will increase our processing capacity significantly. Unki has heeded the government’s beneficiation call, a key pillar of Zimbabwe’s goal to create value, employment and accelerate industrial development from its mineral resources. Anglo American Platinum acknowledges that we have a responsibility to contribute to the country’s economic and social development, and to ensure that our contribution here addresses key national priorities.”

And the success has continued at Unki. In September, Anglo American Platinum announced that the mine would be the first in Zimbabwe to commit to independent auditing against the Initiative for Responsible Mining Assurance’s (IRMA) ‘Standard for Responsible Mining’.

This standard looks at 26 areas of mining including working conditions, human rights, community and stakeholder engagement, environmental impact, and planning and financing reclamation and closure, performing well in its initial self-assessment.

Anglo American plans to measure many of its operations against the IRMA standard, aiming to have all assessed against credible responsible mining standards by 2025.

Chris Griffith said that the assessment helps to keep mines

ANGLO AMERICAN PLATINUM

// WE WELCOME THE COLLABORATIVE AND CONSTRUCTIVE ENGAGEMENTS WITH THE UNIONS THROUGHOUT THE PROCESS //

IRMA is a voluntary certification system meant to complement strong laws and government oversight, it is also the world’s first and only global definition of what constitutes leading practices in social and environmental responsibility for large-scale mining operations developed through consultation with a range of stakeholders. It is the product of ten years of collaboration between our stakeholders that seeks to emulate for mining what has been done with certification programmes in fair-trade agriculture, responsible forestry and sustainable fisheries, as examples.

“We are extremely pleased to see Anglo American’s Unki mine take the lead and begin the thirdparty certification process. We hope that this paves the way for others across the industry to make a similar commitment.”

IS

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operating to international best practice.

“The IRMA self-assessment tool has provided us with a valuable opportunity to measure our performance at Unki mine against international best practice on a wide range of environmental and societal factors,” he said. “We are immensely proud of the work the team has been doing at Unki on responsible

and sustainable mining, and we look forward to continue leading the way for our other mining operations.”

Anglo American CEO, Mark Cutifani agreed, saying: “We have a longstanding commitment as a leader in responsible mining, with numerous examples of our progressive business decisions across many decades. We are pleased that Unki will be the first mine in the world to publicly commit to a third-party audit to determine its performance against IRMA’s Standard for Responsible Mining. As our customers and end consumers who rely on our metals and minerals rightly expect the highest standards of ethical production, we will be putting all our managed mines through such rigorous certification processes by 2025.”

Aimee Boulanger, Executive Director of IRMA commented: “While

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INDUSTRY FOCUS: MINING

© Anglo American - Polokwne Smelter

© Anglo American - Tumela Mine One Shaft

ONGOING STRENGTH In July, Anglo American Platinum announced strong interim results amid tough market conditions and a difficult economic back drop in South Africa. The highlights included EBITDA growth of 82% to R12.4 billion, headline earnings per share up 120% to R28.15 per share, return on capital employed (ROCE) increased to 45%, and free cash flow from operations increased by 126% to R4.3 billion.

Importantly, the company also reported zero fatalities in the first half of the year, with total recordable injury frequency rate (TRCFR)

declining to the lowest on record.

“We are pleased to report that Anglo American Platinum has delivered safe, responsible and profitable production in H1 2019.

We are committed to eliminating fatal incidents on a permanent basis and ensuring safe operations, while delivering leading returns in the PGM industry. Thanks in part to strong fundamentals for the PGM basket price, we have increased EBITDA by 82% to R12.4 billion, resulting in an increase in the EBITDA margin to 32% and doubling our return on capital employed (ROCE) to 45%,” said Griffith.

“This is very much a stronger business today because of the actions we have taken in recent years and I’m pleased to say that there are further opportunities to unlock the full potential from our operations,” he added.

Platinum Grade Metal (PGM) production was consistent throughout H1 and only decreased by 2% on the previous year, thanks to Eskom’s power disruptions in Q1. Anglo American Platinum’s PGM portfolio includes platinum, palladium, rhodium, gold, iridium and ruthenium metal in concentrate.

// WE ARE EXTREMELY PLEASED TO SEE ANGLO AMERICAN’S UNKI MINE TAKE THE LEAD AND BEGIN THE THIRD-PARTY CERTIFICATION PROCESS. WE HOPE THAT THIS PAVES THE WAY FOR OTHERS ACROSS THE INDUSTRY TO MAKE A SIMILAR COMMITMENT // 78 / www.enterprise-africa.net

ANGLO AMERICAN PLATINUM

Chris Griffith Anglo American Platinum CEO

// WE ARE IMMENSELY PROUD OF THE WORK THE TEAM HAS BEEN DOING AT UNKI ON RESPONSIBLE AND SUSTAINABLE MINING, AND WE LOOK FORWARD TO CONTINUE LEADING THE WAY FOR OUR OTHER MINING OPERATIONS // “We are committed to the next phase of value delivery and work is underway to realise value at existing operations. Our aim is to achieve, and

beat, world best operating practices and implementing FutureSmartTM technology and innovation to enable material efficiency improvements.

Market development continues to progress, with a number of achievements made in H1 2019, including investments into the green economy and new product launches to promote platinum demand. Finally, project studies continue to assess how to unlock optimal value from Mogalakwena and the Mototolo/Der Brochen ground,” said Griffith.

In September, on release of the company’s third quarter production report, positive progress continued.

Zero fatalities occurred, PGM production consistency was maintained at 1,141,200 ounces, and the PGM production outlook for 2019 was maintained between 4.2 - 4.5 million ounces. The only major identified threats for the final quarter were

performance of power utility Eskom.

Production of this precious and much-needed metal is not easy. It requires significant monetary and time investments, and operations need constant nurturing to ensure efficiency.

Anglo American Platinum has mastered this practice and with many expansion plans in place to ensure safety, environmental and production statistics, Anglo American Platinum is still positioning itself as a business which leads its industry, and works as an example for others to follow.

WWW.ANGLOAMERICANPLATINUM.COM

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© Gem Diamonds

LETĹ ENG DIAMONDS

Another Decade of Mining that

Makes a Difference PRODUCTION: Timothy Reeder

Located high in the Maluti Mountains of the Kingdom of Lesotho, LetĹĄeng Diamond Mine has a long history of exceptional recoveries and huge volumes. Owner Gem Diamonds long-standing partnership with the Government and the people of Lesotho has just been renewed for a further 10 years, and will open up the continuation of a vital economic and social contribution to the country. www.enterprise-africa.net / 81

INDUSTRY FOCUS: MINING

//

1957 was a hugely important year in Southern Africa’s history.

It holds special significance for being the year that the General Assembly of the United Nations calls on South Africa to reconsider its apartheid policy, and was followed the next year by the country’s resumption of full participation in the UN. The year is also remembered for the series of shark attacks near Durban which occurred during Black December, while Die Stem van Suid-Afrika, written

by Cornelis Jacobus Langenhoven, becomes the official National Anthem. A momentous 12 months, 1957 was also the year of the first diamond discovery in Lesotho. A small mining industry was then established, and during the 1960s and 1970s, Lesotho’s mines yielded several large gems and the industry employed thousands of people.

PRODUCTIVE HISTORY Peter Nixon discovered the Letšengla-Terai Kimberlite Pipes, made up of the Main Pipe and the Satellite Pipe, in 1957 while working in the area.

The mine was officially opened in November 1977, closing after five years in 1982. The final production total was 272,840 carats, recovered from 9.4 million tonnes of kimberlite, mainly sourced from the Main Pipe.

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Letšeng Diamonds was formed in 1995 as a partnership between industry investors (76%) and the Lesotho Government (24%). The mining rights for the Letšeng Mine, situated high in the Maluti Mountains of the Kingdom of Lesotho, were acquired

by Letšeng Diamonds in 1999, and sparked the reconstruction of the mine’s infrastructure in 2003.

Letšeng Diamonds today has two shareholders, with Gem Diamonds Limited owning 70% and the Government of the Kingdom of Lesotho retaining the remaining 30%.

Operated by De Beers during its original operational lifetime between 1977 and 1982, Letšeng reopened in 2004 and was acquired by Gem Diamonds in late 2006 for US$118.5 million.

Letšeng continues to deliver exceptional returns for its shareholders, with annual production rising since the takeover from 55,000 carats in 2006 to over 126,000 carats per annum by the end of 2018. The mine currently processes around 6,439,000 million tonnes of ore annually. “Letšeng Diamond Mine is famous for its large, top quality diamonds,” the company says, “with the highest percentage of large (+10.8 carat) diamonds of any kimberlite mine, making it the highest dollar

// I AM VERY PROUD OF THE LETŠENG MINE. OF ALL MINES IN THIS COUNTRY, LETŠENG IS THE ONLY ONE THAT THAT STICKS TO THE PROMISES AND COMMITMENTS IT MAKES TO THE PUBLIC // value per carat kimberlite diamond mine in the world.”

“Not only are Letšeng’s diamonds the highest valued kimberlite diamonds in the world, they are also from one of the highest diamond mines in the world, at an altitude of over 3100 metres.”

As much as anything else, Letšeng is also renowned for its production of historic diamonds. In August 2011, a 550-carat white diamond, the Letšeng Star, became Letšeng’s fourth major recovery since Gem Diamonds’ 2006 takeover. It was preceded by the 478-carat Leseli la Letšeng (‘Light of Letšeng’) in 2008, the 493-carat Letšeng Legacy in 2007 and the 603-carat Lesotho Promise in 2006. In addition, the 601-carat Lesotho Brown was recovered in 1967.

Letšeng has now produced five of the largest rough white gem diamonds on record, when in January 2018, a 910-carat white diamond, the Lesotho Legend was recovered. This exceptional top-quality diamond is the largest to be mined to date and highlights Letšeng Diamond Mine’s unsurpassed quality.

“This is a landmark recovery for all of Gem Diamonds’ stakeholders, including our employees, shareholders and the Government of Lesotho, our partner in the Letšeng mine,” said Clifford Elphick, Letšeng’s Chairman.

LETŠENG DIAMONDS

MINING LEASE RENEWAL Gem Diamonds Limited was delighted to announce in October that the mining lease for the Letšeng mine had been renewed by the Government of the Kingdom of Lesotho for another 10 years, the maximum period allowed under the 2005 Mines and Minerals Act. The respective shareholding in the Letšeng mine will remain unaltered in the wake of the deal, with a slight increase in the royalty payable in respect of diamonds sold by Letšeng - from 8% to 10%. Letšeng will also be granted a higher number of work permits in respect of foreign nationals increases, which may prove invaluable in filling any skills gaps at the mining operations.

The renewal signalled the continuation of a long-standing, mutually beneficial partnership between the Company and the people of Lesotho,

and represented a firm endorsement of Gem Diamond’s long standing and very significant economic and social contribution to the country. Gem Diamonds continues to invest millions of dollars in corporate social investment (CSI) initiatives, which have included the Letšeng Dairy Project, the construction of classrooms and a footbridge in Pae-laItlhatsoa, as well as the construction of a police station in Phutha-lichaba.

At its opening ceremony at Pae-la-Itlhatsoa, the Hon Minister of Mines commented: “I am very proud of the Letšeng mine. Of all mines in this country, Letšeng is the only one that that sticks to the promises and commitments it makes to the public.” He added: “I so wish other mines could learn from Letšeng, that it is a great thing to work well with the communities. They truly are part of this community.”

Gem Diamonds recognises its responsibility to support the wellestablished cultures and social structures in the local community which surrounds its operations. “Gem Diamonds is proud of our long-standing partnership with the Government and the people of Lesotho,” added Clifford Elphick.

“The mining lease renewal will allow the Letšeng mine to continue to make a very significant economic and social contribution to the people of Lesotho. Gem Diamonds would like to thank the Government of Lesotho for its ongoing support and we look forward to continuing the shared value creation long into the future.”

WWW.LETSENGDIAMONDS.CO.LS

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FERMEL

Making Mechanised

Mining A Reality PRODUCTION: Timothy Reeder

Fermel is a 50-year veteran of the mechanised manufacturing industry, an original equipment manufacturer (OEM) headquartered in Gauteng specialising in underground mining machines. It is an established leader in facilitating complex underground hardrock and flameproof mining operations, and strives to develop machines to mechanise any mine. www.enterprise-africa.net / 85

INDUSTRY FOCUS: MINING

//

“Our proficiencies include design innovation and product optimisation,” begins Fermel, “and we deploy continuous product development to increase machine life and reduce end-user operating costs.”

Targeting excellence in workmanship across everything it does, Fermel is also committed to tailoring after-sales support exactly in line with the needs of the client and the service.

“We understand a client’s operational challenges to provide reliable, productive, sustainable and safe technology,” the company puts in a nutshell.

Fermel is a notable and proud level 1 Broad Based Black Economic Empowerment (BBBEE) employer.

It has undergone a positive transition to achieve its current status, which is reflective of the company’s commitment toward active participation and inclusion of historically disadvantaged South African (HDSA) groups.

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The Mining Charter required by 2014 that mining companies have 26% ownership by HDSAs, a figure raised to 30% in its latest iteration in 2018. It also outlines that a substantial proportion of procurement by mining companies is from BBBEE entities, meaning mining suppliers that have more than 26% HDSA ownership.

Non-compliance with the Mining Charter places a company at risk of not being granted mining rights, and pressure in this respect is increasingly cascading down to mining suppliers in order to remain successful and profitable. Fermel boasts a 97.35% score for ownership, 84.72 % for enterprise and supplier development, 112.1% for skills development inclusive of bonus points and 100 % for social economic development.

These are efforts it vows to continue to support and develop, in order to exceed government BBBEE criteria and to pass on the associated added value to clients.

CRUCIAL WORK Fermel strives to provide services covering every possible need in mechanised mining. Spares deliveries are made quickly from centralised distribution warehouses, or more provincial satellite stores, and regional management and support infrastructure pairs with specialised field technical support to keep things running smoothly. Onsite skills transfer, coaching and mentoring and comprehensive operator and maintenance training programmes also all form part of the Fermel standard.

A huge chunk of economic activity in modern-day South Africa has centred around this crucial sector, with much of its prosperity having centred on mining activities and their ancillary

// THE SAFEST MINE IS ONE WITHOUT PEOPLE EXPOSED TO RISK//

INDUSTRY FOCUS: MINING

// WE DEPLOY CONTINUOUS PRODUCT DEVELOPMENT TO INCREASE MACHINE LIFE AND REDUCE END-USER OPERATING COST // services and supplies. The country’s stock exchange in Johannesburg was established in 1887, a decade after the first diamonds were discovered on the banks of the Orange River, and almost simultaneously with the gold rush on the world-famous Witwatersrand.

In 2018 the mining sector contributed R351 billion to the South African gross domestic product (GDP), and it employed a total of 456,438 people. South Arica’s major mining sectors are well-known, and include platinum, gold, diamonds and coal at the top of the pile, but no matter the notoriety of the mineral, any ore body that lies a considerable distance below the surface presents a challenge when

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it comes to extracting it. The amount of waste that has to be removed in order to uncover the ore through surface mining becomes prohibitive, and in this event, underground techniques must be employed.

While potentially more expensive and harder to achieve the same productivity as in the open pit, it does mean that only underground ore is mined, as opposed to in the open pit where there are often several tons of waste stripped for each ton of ore.

It is highly technical, specialist work in which Fermel is engaged, which makes it imperative to know that the experts are on hand to help with the full range of products and machinery

to maximise productivity.

There is nothing that Fermel cannot handle, boasting a product range spanning loading and hauling, transport systems and scaling and breaking. It has robotic chargers for lifting while road building is also accomplished by a variety of articulated graders. Personnel are transported via 26-30 man capacity ramp bus or 18 man shuttle, and coal is accounted for with everything from extractors to load haul dumpers and compactors.

COMMITTED TO MECHANISATION “The South African mining industry is committed to mechanisation in its deep-level mining operations,” stated Mining Weekly in 2015, and its predictions have proven true to this day.

Centre for Mechanised Mining Systems (CMMS) Director Dr Declan Vogt told Mining Weekly that the steps taken by the mining companies in mechanising

FERMEL

// THE SOUTH AFRICAN MINING INDUSTRY IS COMMIT TED TO MECHANISATION IN IN ITS DEEPLE VEL MINING OPER ATIONS // their operations are encouraging because “as mines get deeper, the environment becomes more difficult, the rock is hotter and the stresses are higher, leading to greater seismicity”.

Mining safety remains a major concern in South Africa, and adv. Paul Mardon, Solidarity’s deputy General Secretary for occupational health and safety, remarked last year that there

is particular concern about seismic activities in deep-level mines in South Africa that cause ground falls leading to mining fatalities and injuries. A safer and healthier working environment is one of the major benefits the CMMS highlights when advocating mechanised mining, and Vogt agrees.

Using people in deep-level operations is a challenge for mining companies because not only does making the underground environment suitable for workers become more costly, but the risk to mineworkers also increases, he explained.

“However, mechanisation offers a solution – fewer people are exposed to risk and, potentially, if there are fewer people underground, they can be supplied with personal environmental zones, rather than the mine having to cool the entire mine.” Mechanisation is hugely beneficial; it removes people from risk, increases productivity

and potentially reduces costs, while opening up new orebodies that would otherwise not have been economical to extract.

“South Africa has some valuable resources that are accessible only through deep-level mining, including the deeper Witwatersrand gold and future deep Bushveld platinum,” Vogt wrapped up. “The safest mine is one without people exposed to risk.

Therefore, moving to mechanisation will improve safety significantly.”

WWW.FERMEL.CO.ZA

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AMPLE INSURANCE BROKERS

Setting the benchmark for South African insurance PRODUCTION: Benjamin Southwold

Ample Insurance Brokers has never been shy in its ambition to set the benchmark for South African insurance. A short term broker offering clients a range of products spanning motor, household, homeowners and business, Ample prides itself on peerless service that suits every individual’s needs.

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INDUSTRY FOCUS: INSURANCE

//

“We consist of a group of young professionals that work together to provide our clients with nothing but the best service,” Ample outlines from the off. “We believe that each client has his/her own individual insurance needs and our Professional Team will assist our clients to fulfil every requirement.” This belief has driven Ample to develop a range of different options to suit every possible need.

Ample lives by a set of ideals that have so far enabled the business to pass the 10-year mark, securing continual growth and expansion along the way.

Integrity is at the top of the list, and rightly so - as Ample puts it, this stands for, “honesty at all times and in all places. We do what is right and let the consequence follow, with no exceptions.”

When putting trust in an insurance broker, it is vital to know that everything will be done in the event of often traumatic circumstances

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arising, and Ample recognises this in its policy of going the extra mile for both co-workers and for clients. “We put value towards your time, compassion towards your circumstances and bring convenience to the table,” the company sums up. “We build a personal relationship with each individual.”

Ample’s relatively diminutive, but superlatively committed, employee base is made up of a group of professionals who have shown themselves worthy of such decorations as SA Underwriters New Brokerage of the Year award, and the Auto & General Hero’s Platinum award. “It has been our company policy not to head hunt,” detailed Founder and Managing Director, Eileen Stoffberg, when we last caught up with the business.

“We invest in people that have potential and help them get the experience and skills required. 95% of all Ample staff are under 40, so youth development is a great part of our business.”

THE BROKER ADVANTAGE With so many ways now prevalent to buy insurance, it is still difficult to argue against using an insurance broker’s expertise to help make the best-informed decisions. Not only can they provide expert, unbiased advice on individual insurance needs, unlike other providers who are focused purely on the sale, with a broker the client’s interests come first, setting it apart from all other insurance options.

“Think a middleman’s a waste of time and money? Think again,” Ample warns. “You’ve heard that cutting out

// WE ARE LIGHT AND NIMBLE AND CAN EASILY ADJUST TO CHANGES IN THE MARKET //

Chat to your broker today to ďŹ nd out how we can take care of your insurance needs or contact us to become a Partner that works with you, to provide value to your Clients.

INDUSTRY FOCUS: INSURANCE

an insurance broker will save you money but contrary to what advertisers would like you to believe, studies have proven that broker pricing is, in reality, cheaper than direct.

“Using a broker means reducing risk, which is why traditional insurers provide preferred or special rates to brokers. The reason for this is that brokers are qualified, experienced and equipped to select the right policy for you, ensuring that you don’t end up in a situation where you are under-insured.”

The personal touch is another factor that cannot be replicated by going direct for insurance. Alongside the often-limited knowledge and limited range of products at the disposal of an operator in a call centre, sorely lacking is the service that comes from looking at individuals and giving unique insurance solutions, tailored to specific needs.

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Opportunities for local brokers like Ample with such specialist knowledge and unerring focus on service delivery remain widespread, as Stoffberg outlined. “I can attribute Ample’s success to ruthless persistence and outstanding people who are self-motivated and do not need to be managed,” she explained.

“We are well rounded and ensure we understand the needs of our clients. We are light and nimble and can easily adjust to changes in the market. I believe this sets us apart from our competitors.

“I believe that in general people want value for their hard-earned money, regardless of the state of the economy,” she opined. “As a broker, we have the benefit of being able to offer the customer many different products from different insurers as opposed to a direct insurer which can only offer one brand.”

TECHNOLOGICAL REVOLUTION “Organisations operating in the insurance industry are faced with working in an environment that is rapidly changing and increasing in its complexity,” opens PwC South Africa in its look into the state of the sector today. “New market entrants, changing customer preferences and market erosion across product lines demand creative approaches to product development, and a willingness to keep

// AS A BROKER, WE HAVE THE BENEFIT OF BEING ABLE TO OFFER THE CUSTOMER MANY DIFFERENT PRODUCTS FROM DIFFERENT INSURERS //

AMPLE INSURANCE BROKERS

up with the rapid changes in technology.”

Amid a somewhat chaotic environment, with established players constantly being challenged by younger, disruptive upstarts, there is much opportunity for those that can innovate in line with the market needs. “We are a very fast paced innovative company,” said Stoffberg of the company which has built a reputation for being trustworthy, innovative, modern and giving personal attention. “We adapt together with our clients’ needs.”

// WE DO WHAT IS RIGHT AND LET THE CONSEQUENCE FOLLOW, WITH NO EXCEPTIONS //

This willingness to shift and change, particularly in a digital regard, may well be key to Ample’s next period of dominance. “The rise of technology and digitalisation is fast becoming a significant driving force in several industries globally, including the short-term insurance industry,” reports bizcommunity.com. “The industry and consumers are increasingly shifting from the traditional models of insurance, and gravitating towards more customercentric, digital solutions.

“The South African insurance industry has been relatively slow in terms of digital transformation,” it continued. “However, over the last few years, some of the key short-term insurance players have embraced technology to improve internal operations as well as customer experience.” With Ample’s dedication to peerless service delivery and history of embracing innovation, these

latest developments will surely be warmly welcomed.

“In addition,” the report concludes, “digitalisation is upending the traditional business model of the insurance market from a productcentric approach towards more of a customer-centric approach. As a result, more market players are making use of emerging technologies to centralise their product-offerings around the customer and to improve customer experience.”

WWW.AMPLEINSURANCE.CO.ZA

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THATCH RISK ACCEPTANCES

The Thatch Insurance

Specialists PRODUCTION: Timothy Reeder

With more than 20 years’ experience in its specialist field, Thatch Risk Acceptances (TRA) is the only South African company to specialise exclusively in the diverse, demanding market of residential thatch insurance, offering the broker market an independent option with specialist expertise.

//

“Thatch Risk Acceptances believe in managing a risk, and not merely insuring it.”

Thus begins the company founded in July of 1998, with the specific aim of servicing the diverse and demanding needs of the thatch risk market in South Africa. “We work with the Broker to minimise the risk. Major exposures, improvements and requirements are identified through a comprehensive underwriting procedure, adding value for the client.”

TRA’s specialist domain of thatch and its many intricacies spans private

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homes residential associations and commercial settings, the latter two of which can encompass body corporates, housing estates, schools, churches and offices and a whole has more. All of this is designed to give the client complete peace of mind when it comes to the all-important matter of their personal insurance.

“We are the only company to specialise exclusively in residential and commercial thatch insurance,” TRA underlines, “and over the years we have built a strong understanding of the requirements linked to this market.”

PROTECTION IS PARAMOUNT With the beauty of a thatched roof comes a whole host of considerations to manage to ensure that it is fraught with the fewest risks possible. It must, it goes without saying, be installed properly, and of tick the boxes of design, specification, construction, workmanship and material.

Then comes the responsibility of maintaining the installation properly, preventing it from being damaged over a period of time by mildew, damp, or wet- or dry-rot. Thatch, while attractive, is also highly combustible,

Global solutions. Local expertise Count on Sedgwick around the world

At Sedgwick South Africa (Pty) Ltd we offer a unique blend of stability, innovation and technical ability across a variety of disciplines. We provide an in-house reservoir of experts to deliver consistent service from a network of seven operational offices across South Africa. Our adjusting capabilities have also extended into the Sub Saharan African Regions as well as providing assistance to our Global colleagues when catastrophic situations arise.

Our loss adjusters manage corporate, commercial and domestic claims, specialising in the following specific areas:

Major and Complex Loss

Forensic fire and explosion investigations

Commercial and Domestic

Liability and Cyber

Quantity Surveying and Engineering Catastrophe response

All aspects of Marine claims

Fixed rate fast track claims

Where we service We have serviced many countries outside of South Africa, right up to Nigeria on the West Coast and Tanzania on the East Coast, including Angola, Mozambique, Zambia, Botswana, Malawi, Congo, Ghana, Kenya, Tanzania, Madagascar, Seychelles and Mauritius For all your loss adjusting needs, please contact ken.maclean@za.sedgwick.com. Our team are ready to assist you.

Sedgwick South Africa (Pty) Ltd Registered in South Africa No. 1992/007300/07 | Registered Office: 20 Georgian Crescent East, Hampton Office Park, Bryanston 2191 Tel: +27 11 557 9000 I www.sedgwick.com/za

THATCH RISK ACCEPTANCES

and becomes more so over time, as the thatch layer becomes thinner and heats up more quickly.

While direct lightning strikes are relatively rare, they still can happen and are apt to cause fires. The combination of South Africa’s high lightning flash density statistics, and the popular trend all over the country to use aesthetically pleasing thatched roofs for residential as well as commercial buildings mean that the threat of lightning damage is very real.

A lightning strike can cause widespread chaos as much as it can personal devastation, and thatch’s tendency to become ‘fluffy’ at its edges leaves it particularly prone to ignition as, if moist, methane and other flammable gases can be formed.

Other disasters, such as wildfires, are also far more likely to occur in South Africa than elsewhere, with hundreds each year making adequate protection an absolute must, particularly given thatch’s innate combination of beauty and risk. Electrical fault is a universal menace, and is singled out as the most common cause of fires in formal residential areas. Open flames used for cooking or heating are typically to blame for fires in informal settlements.

As a result, it is especially crucial that those benefitting from the glories of a thatched dwelling firstly do all they can to reduce the risk posed by fire, implementing as much prevention as possible and taking steps to minimise the damage should a fire occur. The next key line of defence is to take advantage of the valueadding, comprehensive underwriting procedure developed by TRA over its more than 20 years in the business.

// A THATCHED ROOF IS REGARDED AS A NON-STANDARD CONSTRUCTION BY MANY INSURERS //

THE OBVIOUS CHOICE Thatch Risk Acceptances is placed to offer a complete service to its broker base, backed by a full mandate from Compass Insurance Company.

Compass operates in the short-term insurance sector, offering a valueadded proposition to the market and focuses primarily on providing customised, innovative and costeffective insurance solutions.

As a result, TRA can provide quotations, issue policies and manage the entire claim settlement process from beginning to end. Dealing with the broker network is also advantageous for TRA, as it is able to focus solely on the thatch industry and thereby have the latest knowledge and capabilities at its disposal.

Choosing Thatch Risk Acceptances also lands the customer the full backing of Hannover Re, whose gross premium of more than EUR 19 billion places it third among the largest reinsurance companies in the world. It transacts all lines of property and casualty and life and health reinsurance, and is present on all continents with around 3,200 staff, boasting a worldwide network of more than 100 subsidiaries, branches and representative offices.

Quite apart from the strength of its partnerships, TRA itself is of course an immovably established firm with a proven track record of over 21 years, priding itself on delivering a personalised service with knowledgeable and friendly staff.

Absent here are the dreaded call centres which can amplify what can be an already stressful, complicated process, in favour of quick turn-around times on quotes, endorsements and claims.

“We have the independent ability to accept the risk, no matter how big or small,” TRA continues. “What is more, the premium quoted is the premium payable; there are no hidden costs or charges. We can provide a complete service to the broker fraternity, and full legislated commissions are paid.”

// THATCH RISK ACCEPTANCES BELIEVE IN MANAGING A RISK, AND NOT MERELY INSURING IT // When we last caught up on the status of the business, Natasja Blok, Managing Director of Thatch Risk Acceptances, highlighted this personal touch and unabashed dedication as key aspects of its success. Although the company is composed of a relatively small staff complement, each member has vast experience in the thatch insurance industry. “Our niche has never changed in over 15 years, and this is one of our key success factors,” she told us. “When you have a niche, you should stick to it and do what you know best.

“Our staff eat, drink and sleep thatch,” Blok was keen to impress upon us. “They work with it every single day and they are extremely knowledgeable about it. They could answer any question that could come up about thatch and this sets us apart from other players.

“In addition, we don’t run call centres. We are very focused on personal service and in today’s fast pace of business, this is still appreciated by many brokers when they experience our personal touch.”

WWW.TRA.CO.ZA

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NETCARE

Healthy Netcare Continues

Delivering Excellence PRODUCTION: Manelesi Dumasi

Leading South African private healthcare provider Netcare is driving forward with several initiatives and awards that demonstrate its industryleading status. Investments into new technology and an unwavering focus on patient care make this powerhouse provider almost unrivalled. www.enterprise-africa.net / 101

INDUSTRY FOCUS: HEALTHCARE

//

Things continue to move at pace for South Africa’s leading private healthcare business, Netcare. Even with uncertainty surrounding the future of the country’s healthcare industry, with the onset of NHI, Netcare’s progress is fast. Ongoing development and improvement have helped the JSE-listed group to deliver impressive financial results and outstanding services for patients.

Featured in Enterprise Africa in October 2015 and February 2017, Netcare has been growing significantly since its establishment in 1996. With just four hospitals upon listing in the same year as its establishment, the company now has 54 hospitals, more than 10,500 hospital beds, more than 21,700 employees, and seven training campuses among a range of other industry-leading facilities. When it comes to defining excellence and industry-leading business, it is hard to look beyond Netcare as an example.

Through 2018 and 2019, the company has further displayed its ambition and quality by completing acquisitions, celebrating anniversaries, achieving African firsts, and collecting numerous awards.

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AKESO After successfully exiting its operations in the UK, Netcare has bolstered its local presence after acquiring Akeso Clinics - a group of 12 dedicated mental healthcare facilities. Approved by the Competition Commission in March 2018, the deal was first announced in November 2016. The acquisition was reported to be worth R1.3 billion.

In March, Netcare CEO Dr Richard Friedland said: “We are continuously exploring ways to improve our service offering to patients and have recognised the growing demand for mental healthcare services in South Africa.

“The Netcare Group is a leading provider of primary, secondary and tertiary private healthcare services in the country, but is largely underrepresented in the mental healthcare field, as we do not currently have bespoke or dedicated mental health or psychiatric facilities in our portfolio.

“Akeso has an outstanding reputation, a well-respected and experienced management team, and an excellent patient-centred clinical programme. We therefore believe that the acquisition of Akeso provides a strong platform from which to expand our

// THIS TECHNOLOGY COULD SIGNAL A NEW ERA IN PERSONALISED JOINT REPLACEMENT // mental health services in South Africa.”

Allan Sweidan, Co-Founder and Managing Director of Akeso Clinics said that the deal would help Akeso to grow its footprint and access further investment.

Across Africa, there has been an absence of treatment for mental health problems, and in 2018 South Africa, Nigeria and Ethiopia were experiencing 75% and 90% treatment gaps respectively. Clearly, the need for services like those delivered by Akeso are vital - many doctors describe the relationship between mental and physical health as inseparable.

SPRINGS In Springs, at the Netcare N17 Hospital, celebrations were underway in August as the hospital celebrated its 20th anniversary. Opened in 1998, with a range of state-of-the-art technology,

NETCARE

// THE NETCARE GROUP IS A LEADING PROVIDER OF PRIMARY, SECONDARY AND TERTIARY PRIVATE HEALTHCARE SERVICES IN THE COUNTRY //

the N17 was built on the grounds of an old polo club. In its early days it as known as the Tonk Meter Hospital because of its location next to the Tonk Meter Road. After being acquired by the Netcare Group in 2007, the hospital has become even further entrenched in the community while always adding to its impressive and vast range of services.

“The 20th anniversary is an important milestone not only for the hospital but also for the communities we serve,” said Jaco du Preez, General Manager at N17.

“Our management team and staff members have embraced on-going improvement and our hospital has made a great contribution within the community over the years, with staff having cared for and touched the lives of many thousands of patients and their families.”

“Since inception, progress has been the primary objective of the hospital.

This was driven by quality medical service delivery, excellent facilities and equipment and a quest for on-going learning. The hospital culture has long been one of efficiency and dedication,

which have always been evident from the excellent relationships between staff and patients,” adds Du Preez.

Located on the outskirts of the busiest metros in South Africa, and perfectly positioned on an easy to reach transport route, the N17 has always faced capacity constraints.

“One of our greatest challenges through the years has been the facility’s capacity constraints. Today, Netcare N17 Hospital is a modern, 175-bed facility, which serves the communities of Springs and surrounding towns as far as Secunda,” he adds.

Fortunately, N17’s service portfolio is wide-ranging. In addition to emergency medical care, a wide range of medical disciplines is provided including ear nose and throat surgery, maxillo-facial surgery, neurosurgery, obstetrics and gynaecology, all of which are supported by diagnostic services. The hospital can accommodate adult, paediatric and neonatal patients requiring intensive care. Facilities also include paediatric, medical, surgical, and combined wards as well as a maternity unit.

AWARD WINNING In September, Netcare celebrations continued when the company was labelled as the best employer in the healthcare sector at the South African Graduate Employers Association (SAGEA) Employer Awards.

The awards are based on a survey undertaken by more than 2000 graduates where elements including brand, training and development opportunities, and range of programmes and roles available are reviewed and graduates are asked to pick the company they think has the most to offer.

The award is a coup for Netcare, which is highly reliant on the ongoing development of a talented local employee base.

“Netcare seeks to distinguish itself as a foremost employer of choice, and we strive to attract and retain talented individuals, including young graduates, to the healthcare sector,” said Peter Warrener, Netcare Group’s Human Resources Director. “This award is therefore a validation of our collective efforts over many years, and I would like

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INDUSTRY FOCUS: HEALTHCARE

to extend the company’s appreciation to all who contributed to this achievement.

“We place considerable importance on staff engagement and development to empower our people and encourage innovation, critical thinking, proactiveness, continuous development and life-long learning. At the same time, Netcare is a values driven organisation that emphasises care, passion, dignity, participation and truth in our approach to everything we do.

“We look forward to developing more young graduates and nurturing their talents within Netcare in the years to come, knowing that our approach to attracting and retaining quality staff ultimately benefits our patients and the quality of care we are able to provide,” he added.

A consumer focussed business, it is vital for Netcare to deliver service of the highest standards ensuring positive outcomes, strong brand recognition, and a culture of excellence.

Later in September, Netcare was in Washington DC, picking up the Sub-Saharan Africa Region Corporate Energy Management Award from the Association of Energy Engineers (AEE).

The AEE is recognised as the world’s leading authority in the global energy industry and these awards are highly sought after. This is the first time an African healthcare company has claimed an award, and Netcare was delighted.

“No company in the world today can afford to ignore the environmental impact of its operations and, as a responsible corporate citizen, Netcare has invested significantly in green technologies and more environmentally friendly and sustainable practices,” said Richard Friedland.

The awards reflect the company’s approach to energy sustainability and

follow on from two awards claimed in 2018 from the South African Energy Efficiency Confederation (SAEEC) for Commercial Corporate Company of the Year and Commercial Energy Project of the Year.

Over the past six years, the company has undertaken a review of its sustainability programme, resulting in the initiation of several energy saving projects. The result of these projects is a major reduction in carbon footprint of more than 47,000 tons of CO2 per year.

The projects include the use of modern heat pumps, optimisation of HVAC systems, installation of solar generating panels across 53 sites, and a major R130 million refit of lighting where more than 100,000 outdated lights were replaced with efficient alternatives. The result of the lighting project alone was a saving of 17,000,000 kWh in just one year (40% of Netcare’s lighting load).

“Netcare’s considerable success in environmental sustainability demonstrates our forward-thinking, innovative and disruptive approach, not only in the way we deliver healthcare, but also in terms of future-proofing our operations to play our part in a cleaner, healthier environment for all the people in our country,” said Friedland.

“Every member of the Netcare family has contributed towards these achievements. I would like to congratulate the operational and technical teams, as well as the staff members at all of our facilities for the support of the various environmental projects we have undertaken around the country. We especially thank our sustainability team led by Theuns Langenhoven, Johan Durand and André Nortje for their guidance on our environmental sustainability journey

// TODAY, NETCARE N17 HOSPITAL IS A MODERN, 175-BED FACILITY, WHICH SERVES THE COMMUNITIES OF SPRINGS AND SURROUNDING TOWNS AS FAR AS SECUNDA // 104 / www.enterprise-africa.net

// NETCARE AND NETCARE ST ANNE’S HOSPITAL ARE DELIGHTED THAT THEIR EFFORTS AND INVESTMENT HAVE RESULTED IN THEM MEETING THE STRINGENT TSSA LEVEL I ACCREDITATION REQUIREMENTS // and for keeping the Netcare and South African flag flying high.

“It is most rewarding that Netcare’s efforts to help secure a ‘greener’ future for our country have been recognised internationally. We remain fully committed to environmental sustainability, as we believe our initiatives are a critical investment in the future of our communities and country,” said Friedland.

ROBOTIC SURGERY October was a breakthrough month for Netcare, and the wider healthcare industry, when the group pioneered the use of Mako robotic arm assisted surgery system for the first time ever on the African continent.

At Netcare Linksfield in Johannesburg, a total knee replacement was carried out by orthopaedic surgeon, Dr Chris McCready.

For Netcare, the hope is that the advancement of this technology, which is common globally and can be used for hip replacements, can help streamline the process, bringing this much needed surgery to more and more Africans.

“There is no national register for local total knee replacements currently, but with an estimated 8000 to 10,000 total knee replacements taking place in

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INDUSTRY FOCUS: HEALTHCARE

South Africa each year, this technology could signal a new era in personalised joint replacement,” said McCready.

“This technology determines the dimensions for the surgical cuts to the bone surfaces, so that the best sized implanted joint components can be selected for each patient, and the placement and alignment of the implanted components can be planned in advance. During the operation, the robotic arm system provides detailed visual, auditory and tactile feedback to the surgeon, which helps to enhance surgical precision in positioning and

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aligning the knee implants.

“The robotic arm system, which is controlled by the surgeon at all times, provides an additional safeguard for the patient because it ensures that only the specific areas identified in the personalised pre-surgical plan can be operated on, and thus prevents damage to critical structures within the knee.

“Benefits for patients that have been noted in outcomes recorded internationally for this advanced surgical option include the achievement of a better balanced and more natural feeling implanted knee, less post-

operative pain and quicker recovery time,” added McCready.

Based on international examples, the hope is that this type of technology can help to reduce the length of hospital stay, improve recovery time and offer more options for those in need.

ACCREDITATION IN KZN Proving Netcare’s commitment to the provision of world-class emergency healthcare, the Netcare St Anne’s Hospital in Pietermaritzburg was, in October, recognised by the Trauma Society of South Africa (TSSA) with Level 1 Trauma Accreditation.

The facility, which recently went through an extensive upgrade programme, was recently relaunched and was proud to become the first private facility in KZN to achieve Level 1 trauma accreditation.

Craig Murphy, Regional Director of Netcare’s coastal region highlighted the importance of such acknowledgement.

“This is a memorable day for Netcare St Anne’s Hospital, which has become the first private facility in KwaZulu-Natal and one of only three private facilities in South Africa to achieve this remarkable feat.

“Netcare and Netcare St Anne’s Hospital are delighted that their

NETCARE

efforts and investment have resulted in them meeting the stringent TSSA level I accreditation requirements.

We congratulate all of those involved in achieving the accreditation, and particularly the practice of trauma surgeons comprising Professor Damian Clarke, Dr John Bruce, Dr Vassil Manchev and Dr Ian Donkin. We also wish to thank the Netcare national trauma team under the aegis of Mande Toubkin for their considerable support in ensuring that the accreditation came to fruition.”

There is a dire need for world-class trauma facilities in the region, proven by the 300% increase in severe trauma patients transported to the hospital by emergency helicopter in just one month after the new accreditation.

“At the beginning of this month, a patient was electrocuted by a 22-kilowatt high voltage line in a remote part of the Eastern Cape. According to the patient’s employer, the closest ambulance would have taken more than four hours to get the seriously burned patient to the closest hospital from where he would have had to be transferred to another facility that was able to provide the level of treatment and care required,” said Murphy.

“The employer said that thanks to the Netcare 911 helicopter emergency

service [HEMS] and the Netcare St Anne’s Hospital’s expert trauma team, the employee’s life was certainly saved as he was stabilised and received life-saving treatment in the shortest time possible.”

This recognition is vital for the hospital and significant for the advancement of practice, and medicine, in the province. KZN is home to 78 hospitals which cater for a range of different conditions. Not all are suitable for a trauma centre, and this makes it essential for those with capacity to ensure treatment is of the highest standard. Netcare is well aware of its responsibilities.

“Given Netcare’s commitment to improved trauma outcomes, the team at the hospital has worked in close collaboration with the TSSA and Netcare’s national trauma team to facilitate the accreditation. It is impressive to note that Netcare St Anne’s Hospital now joins the renowned Netcare Milpark and Netcare Union hospitals, situated in Johannesburg and Alberton respectively, as the country’s top TSSA-ranked private trauma facilities,” said Mande Toubkin, Netcare’s General Manager: Emergency, Trauma, Transplant and CSI. “Essentially, the Level 1 accreditation is an indication of the

application of best practice and having the required skills and facilities in place to treat alllevels of trauma, including life-threatening Priority One patients with complex and/or multiple injuries.”

Currently, 25 Netcare emergency departments are TSSA accredited and the company is keen to continue the roll out across the remaining hospitals.

At the core of the Netcare offering is a promise of ‘providing you with the best and safest patient care’, and this accreditation in KZN is the perfect example of the lengths the company will go to to ensure it is sticking to its values.

All of the success through the second half of 2019 is just a small example of the fantastic work that has been going on at Netcare, across South Africa, for the past 23 years. Investment into quality technology, development of staff, ensuring long-term sustainability, and growth into modern areas of medicine and healthcare are all underway ensuring that Netcare is well positioned for the future to achieve on of its central goals: ‘Being a leading corporate citizen, proud of our heritage and what we contribute to society’.

WWW.NETCARE.CO.ZA

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TRANSNET

Rail & Port Investments to Drive

SA Economic Growth PRODUCTION: Manelesi Dumasi

Transnet has signed up to a number of new partnerships and initiatives that will see the State Owned rail and port utility assist customers moving product around South Africa and exporting to global markets. In times where State Owned Entities are under more scrutiny than ever before, Transnet is displaying all the characteristics of a business ready to participate in the modern commercial environment.

//

Of all South Africa’s State Owned Enterprises (SOE), Transnet is arguably the country’s most important. Employing more than 55,000 people, the rail and port infrastructure utility is a major driver of economic performance and is the one of the most important elements behind President Ramaphosa’s big investment drive – if South Africa wants to attract FDI, it must have functional ports and rails in order to import, export, and move product around this large nation.

But, despite its clear importance to South Africa, and southern Africa, Transnet has been plagued by negativity after years of mismanagement and corruption have left the titanic business with a

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tarnished reputation and a lacking level of trust from the South African public.

This unfortunate situation was compounded in November when Auditor General, Kimi Makwetu confirmed that SOEs were indeed under extreme financial pressure.

“There were weaknesses in the performance reporting processes and an increase in non-compliance at the 14 SOEs and their significant subsidiaries audited by the Auditor General South Africa (AGSA). These entities also disclosed R1.4 billion in irregular expenditure,” said Makwetu.

For Transnet, this kind of news is not welcome as the company works hard to restore its standing as a trusted, reliable and ethical partner of South Africa.

Acting CEO, Mohammed Mahomedy

– viewed by many as a cleaner of corruption – has stated that the company is now regaining credibility.

“Transnet is a significant entity in the lives of South Africans and the local business community. Notwithstanding the adverse findings and reports at the Zondo Commission and in the media, the Board and management are confident that the vast majority of the organisation’s strong Transnet community are good, committed and passionate people who have given of themselves for the benefit of the organisation and all that it stands for,” he said when discussing the company’s financial results.

Several recent announcements have helped to affirm that the business continues to do good work, and remains extremely important to the country.

© Transnet

INDUSTRY FOCUS: INFRASTRUCTURE

REELING IN GOOD RESULTS In September, Transnet released its results for the year ending 31 March 2019. Revenue increased by 1.6% to R74.1 billion; EBITDA increased by 3.8% to R33.8 billion; profit for the year increased by 24.7% to R6 billion; and cash generated from operations increased by 0.7% to R35.2 billion. The company also recorded a disabling injury frequency rate (DIFR) of 0.71 – below 0.75 for the eighth consecutive year, and well below the global benchmark of 1.0.

These encouraging results demonstrate that, even during tough times, Transnet’s important work is continuing to generate positivity.

With ongoing capital investment programmes underway, it is likely that Transnet’s influence will also continue to prove vital across the various value chains in which it plays.

“Transnet is a significant entity in the lives of all South Africans;

// THE BOARD HAS MADE SIGNIFICANT PROGRESS IN ENSURING THE ORGANISATION IS CLEANSED OF THE MALFEASANCE ASSOCIATED WITH THE ‘STATE CAPTURE’ ERA AND HAS BEEN ABLE TO DRAW ON A DEPTH OF TALENT TO TAKE ON THE ROLES VACATED BY SENIOR EXECUTIVES WHOSE SERVICES WERE TERMINATED // 110 / www.enterprise-africa.net

and as one of the largest logistics infrastructure SOEs on the African continent, it is in many ways the very heart and lungs of our economy.

This 55,000-strong employee community is also a microcosm of the macrocosm that is the South African developmental state. As such, it is both our duty and privilege to support National Government’s developmental mandate through large-scale industrialisation, active and competitive supplier development, job creation and employment equity – both within Transnet’s operations, and through the creation of direct and indirect industrialisation opportunities in the wider economy,” said Mahomedy.

This positivity continued in December when decent half year results were released, highlighting a revenue increase of 2.9% to R38.7 billion; an EBITDA increase of 5.1% to R17.5 billion; cash generation from operations increasing by 5.3% to R16.2 billion; and profit for the year increasing by 3.5% to R2.9 billion.

“Operational performance during the period under review was mixed with areas where performance exceeded expectations and areas where, due to various challenges in the port environment and general freight rail sector, performance was below expectations,” said Mahomedy.

MECA 2 Also in September, Transnet announced details of an exciting new partnership with Kalagadi Manganese.

This black female-owned business has partnered with Transnet through a R3 billion, three million tonne per year deal which will see beneficiated sinter manganese moved across the country’s rail infrastructure to ports for export to global markets.

The Manganese Export Capacity Allocation Agreement (MECA 2) is a five-year deal which will also see creation of new jobs and large contributions to the national economy.

“This contract, which as part of

// TRANSNET IS A SIGNIFICANT ENTITY IN THE LIVES OF ALL SOUTH AFRICANS; AND AS ONE OF THE LARGEST LOGISTICS INFRASTRUCTURE SOES ON THE AFRICAN CONTINENT, IT IS IN MANY WAYS THE VERY HEART AND LUNGS OF OUR ECONOMY // the MECA2 project, will offer us an opportunity to move three million tonnes product from the Kalagadi Mine and Sinter Plant in the Northern Cape through to Eastern Cape Province Ports,” said Founder and Chairperson, Daphne Mashile-Nkosi – who has been working on a partnership with Transnet for more than a decade.

“This partnership supports a job creation of over 1250 direct opportunities through various parts of our value and these will make a contribution of R6.2 billion annually to the country’s GDP.” MECA 2 kicked off in 2015 and has since helped to realise an increase of manganese export volumes from five million to 15.1 million tons each year.

“As an entity, we want to be an active contributor to the country’s mission of retaining the position of being the leading exporter of highgrade beneficiated manganese. And this contract gives us the opportunity to make that dream a reality,” said Mashile-Nkosi.

Transnet Chief Customer Officer Mike Fanucchi added: “This is an indication that Transnet is serious about the integration of its operations to suit customer needs. When we commenced

TRANSNET

with the MECA process, and the integration of our service offering, we only had two manganese companies playing in the export manganese markets. We are excited to see this number increasing.”

Today, Transnet has organised MECA 2 contracts with 10 local manganese producers and has set aside 15% of its overall manganese export lines for new entrants.

WORLD’S LONGEST In October, Transnet Freight Rail (TFR) celebrated as it officially launched its new 375-wagon manganese train – a production train with the largest number of wagons in the world. TFR had held the previous record with its 342 wagon iron ore train.

The train, which extends over four km, travels 861 km from Sishen to Saldanha and can now carry 23,625 tons of manganese per train.

Designed to assist customers in the Hotazel region, the new train brings improved efficiencies.

TFR General Manager for the Iron Ore and Manganese Business Unit, Russell Baatjies said: “The project team was challenged to explore the use of technology through Industry 4.0 solutions, to achieve the same objective at minimum cost. Applying distributed power technology to increase the train length to 375 wagons will reduce capital requirements by over 90% of the initial estimate.”

TFR’s Acting Chief Executive, Lloyd Tobias said: “This is in line with TFR’s business objective of applying the heavy haul operating, maintenance, design, construction and best practice principles on General Freight operations, and the Transnet Strategy of migrating traffic from road to rail.”

TFR General Manager, Brian Monakali who is also the former Chairman of International Heavy Haul Association said: “This is another breakthrough for the Heavy

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INDUSTRY FOCUS: INFRASTRUCTURE

Haul Railway Industry. Rio Tinto, Australia, recently started with the implementation of Driverless trains in their Iron Ore railway system. Transnet has now successfully operationalised the 375-wagon train. The collaboration on technical research and sharing of best practice by Heavy Haul operations worldwide will surely keep pushing the operations, safety and rail capacity envelop to new levels through application of breakthrough technology.”

PEOPLE INVESTMENT The type of innovation and engineering excellence that shines through at Transnet comes as a result of the company’s ongoing focus on people development and its ability to bring people through a system.

By investing in skills development, Transnet is obtaining talent from South Africa and exposing it to the world.

In November, TFR welcomed more than 100 new engineering and technician graduates into the rail network operations side of the business. All have completed the Engineering Development Programme which is part of a wider Transnet

© Transnet

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scheme which has seen the group spend R700 million on training programmes in 2018/19 alone.

The 73 technicians and 35 engineers will undertake a wide range of important work for Transnet and will pave the way for future recruits coming out of South Africa’s universities.

Brian Monakali said: “EDP forms part of Transnet’s overall training programme. The development of Engineers and Technicians in rail engineering creates a pipeline and succession pool of qualified and competent Technicians and Engineers who are ready to advance the business needs and be promoted into critical management and specialist functions.”

Lloyd Tobias agreed saying: “There has been some notable progress over the years in terms of the intake of Engineers and Technicians at Transnet. As a SOC, we see the youth as the future leaders of our country and as informed by our mandate to commit to the skills development and training of our youth, the Engineering Development Programme seeks to contribute to the Government’s plans to advance youth development.”

TFR Executive Manager:

// AS AN ENTITY, WE WANT TO BE AN ACTIVE CONTRIBUTOR TO THE COUNTRY’S MISSION OF RETAINING THE POSITION OF BEING THE LEADING EXPORTER OF HIGHGRADE BENEFICIATED MANGANESE // Human Capital (Service Delivery), Zinhle Sithole spoke about the company’s successful collaboration with educational institutions.

“The Engineering Bursars are recruited from a number of tertiary institutions, the collaboration also gives Transnet a chance to tap into the minds of academics when comes to Engineering, Research and Development projects and other career developments,” she said.

TRANSNET

GERMAN PARTNERS A positive deal was concluded in November when Transnet arranged a loan agreement, as part of its diversified funding plan, with Frankfurtheadquartered KfW Ipex-Bank. The seven year, R1.6 billion bilateral loan will support the country’s freight-handling infrastructure development.

“The signing of this loan agreement demonstrates continued investor confidence in the business and their comfort with the improved governance environment, that has been driven by the new Transnet board of directors,” said Mohammed Mahomedy.

Transnet’s Acting Chief Financial Officer, Mark Gregg-Macdonald added: “This is Transnet’s second loan agreement with KfW Ipex-Bank which comes with a longer tenor and larger commitment than the previous facility concluded with them five years ago.”

LEDJADJA COAL Transnet has made its name in the coal fields of South Africa. Railing coal to the ports for export has been a major driver of business for the company over the years. In November – a productive month for Transnet – the company announced details of a new partnership that would see its work in the coal sector extended.

The R10 billion contract with Ledjadja Coal – a division of Resource Generation (ResGen) – will see Transnet haul 3.6 million tonnes per annum from the Boikarabelo Coal Mine in Limpopo’s Waterberg coal field to Richards Bay for export. Currently in development, the mine is aiming for first coal to be loaded at the port in June 2022.

The Waterberg is an extremely important region for Transnet, and for South Africa’s coal export industry, and the company continues to invest heavily in infrastructure development to maximise potential from the area.

A 1.8 km passing loop has been completed at Matlabas which allows 100-wagon trains to cross without disrupting other traffic. A 2.8 km

© Transnet

loop is underway at Thabazimbi, and expansion with a new five km line is underway to connect Bleskop and Norite. When all is complete, the Waterberg project will unlock capacity allowing for Ledjadja and other coal operations to send their product for export with ease.

Mike Fanucchi said: “This contract will enable Transnet to fulfil its mandate of lowering the cost of doing business in South Africa. This contract will stimulate an appetite of coal miners in and across the Botswana border.”

ResGen Chief Executive Officer (Interim), Leapeetswe “Papi” Molotsane said: “The signing of the deal is an important effort in opening up the Waterberg region, in line with South Africa’s strategic imperatives embedded in SIP 1. Boikarabelo is a genuine public-private partnership with key South African stakeholders such as Transnet. Securing rail capacity with Transnet is such a huge milestone for the company as it results in multiple economic benefit for Lephalale and surrounding areas.”

With this significant new contract, the success of the new graduates, and the progress being made in the manganese space, it’s clear that

Transnet’s decent results are not a one off and the business case behind this behemoth organisation remains robust. With new management purging the system of corruption, the future looks bright for Transnet as it continues to roll on as one of South Africa’s SOCs that is much needed.

“The Board has made significant progress in ensuring the organisation is cleansed of the malfeasance associated with the ‘state capture’ era and has been able to draw on a depth of talent to take on the roles vacated by senior executives whose services were terminated,” said Mahomedy.

As the reputation of all SOCs are nurtured back to health, Transnet is fortunate that its work is vital and ‘inextricably involved in all aspects of life in South Africa’ and its reach in terms of numbers of people employed make it a business that holds significant clout. With all of the exciting projects underway right now, and with more to come in the future, Transnet’s power and influence will continue to grow.

WWW.TRANSNET.NET

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SASOL

Sasol Enters Post-LCCP

Build Era With New CEO PRODUCTION: Joe Forshaw

Leading South African petrochemical business, Sasol, has faced an ongoing spate of issues since embarking on the construction of a new chemical production plant in Louisiana, USA. The past few years have been difficult for South Africa’s largest taxpayer, but the build is almost complete and the company is looking to restore confidence and build a culture of excellence as it pushes forward in search of growth.

//

It’s not business as usual for international petrochemical business, Sasol. The South African company, which has exposure in more than 30 countries, is going through a tumultuous period as it approaches full completion of its ambitious Lake Charles Chemical Project (LCCP) in Louisiana, USA. Founded in 1950, headquartered in Sandton, Sasol (South African Synthetic

Oil Ltd) is famous for using specialist technology to produce chemicals, oil and liquid fuels. Traditionally, the business – which employs some 31,000 people – has used coal liquefication techniques to produce synthetic oil, diesel and petrol fuels.

But, following expansion globally, and the progress of the LCCP, Sasol’s culture has been dented and the JSE and NYSE-listed company faces new challenges.

LCCP has gone way over budget and beyond deadlines, the company has been forced to look into its carbon emissions, and employees have voiced concern over management decisions regarding share ownership.

Of course, because of the size of investment, LCCP has been the immediate focus at Sasol. The project will now cost Sasol almost R13 billion, an increase of more than 50% on initial

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INDUSTRY FOCUS: INFRASTRUCTURE

// BY REDUCING EMISSIONS THROUGH ALTERNATIVE FEEDSTOCKS AND TECHNOLOGIES SUCH AS RENEWABLE ENERGY, WE BELIEVE OUR PRODUCTS, PRODUCED IN AN INCREASINGLY SUSTAINABLE MANNER, WILL SERVE AN IMPORTANT MARKET NEED, WHILE ADDRESSING CLIMATE REQUIREMENTS // projections. Shares hit a 20-year low when the company announced this news. In 2016, David Constable – thenCEO – said that a rise in cost to R11 billion was the ‘worst case scenario’.

Sasol has highlighted weather delays, correction for duplication of investment allowances, higher contract expenses, unanticipated work and defective materials as reasons for expense hikes.

Market commentators have looked on in shock and quickly pointed the finger at senior management - ‘it’s illustrative of lacklustre controls and oversight throughout the four to five years LCCP has been in design and construction. Sasol needs to address its leadership and culture’ said one analyst.

Since 2016, Bongani Nqwababa and Stephen Cornell headed up Sasol as joint CEOs. While the company has always backed strategy of a joint role, many have cited differing strategy and implementation methods as strains on the business with one journalist even labelling the

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organisation as the ‘Sasol Hydra’, after the two-headed mythical creature.

But, in October, Nqwababa and Cornell stepped down under pressure from shareholders amid the rising cost crisis at LCCP following a lengthy internal review commissioned by the Board. The company’s Executive VP of its global chemical business, Fleetwood Grobler – a 35-year Sasol veteran – will take the reins as CEO. Upon the resignation of the joint CEOs, the Sasol board released a fairly damming statement: “It is a matter of profound regret for the Board that shortcomings in the execution of the LCCP have negatively impacted our overall reputation, led to a serious erosion of confidence in the leadership of the company and weakened the company financially.”

Sasol is the largest contributor to tax revenue in South Africa and the world’s largest producer of fuel from coal. Grobler faces a big task to restore confidence in the business and steady the ship after the LCCP cost crisis.

During his first speech at the 2019 annual financial results presentation, Grobler set out his position on taking the business forward.

“I am well aware of the challenges that we have faced and also the challenges that lie ahead.

“Recent events have created a significant amount of uncertainty at Sasol, through which the team has been remarkably resilient.

“We need to be realistic that although today we address some key areas of uncertainty, we will have challenges ahead. Chief among these is the successful completion of the LCCP. “Many of our stakeholders are not interested in promises, they want to see delivery and I’m very much on that page,” he said.

Even with the hurdles in America, Sasol has managed to continue bringing positive results.

October saw the release of what Grobler termed ‘resilient results in a challenging environment’.

STRONG PERFORMANCE Overall, annual profit was up 5%.

Headline earnings per share (HEPS) were up 12% to R30,72. Core headline earnings per share (CHEPS) were up 5% to R38,13. Cash generated by operating activities was up 20%. At Secunda, Synfuels Operations achieved an annualised run rate of 7,8 mt post the full shutdown. Natref achieved a production run rate of 637m³/h, the highest in last eight years. The HighDensity Polyethylene plant produced at the upper end of design capacity, and ORYX GTL achieved utilisation of 81% due to unplanned maintenance shutdowns. Mining productivity was up by 3%. Liquid fuel sales volumes up 2%, resulting from a strong Natref performance. On the sales side, the business continued with satisfactory results. Base Chemicals sales volumes up 4%, offset by softer commodity chemical prices. Performance Chemicals sales volumes down 3% impacted by 1st half 2019 external supply constraints and 2nd half 2019 softer macroenvironment in Europe and Asia.

“For the financial year our foundation business delivered resilient results despite challenging conditions. The big capital spend on the LCCP is behind us and the finish

// LCCP HAS HIGHLIGHTED THE IMPORTANCE OF CREATING THE RIGHT CULTURE AND CONTROL ENVIRONMENT WHERE OPEN AND TRANSPARENT DIALOGUE IS ENCOURAGED //

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INDUSTRY FOCUS: INFRASTRUCTURE

// WE NEED TO BE REALISTIC THAT ALTHOUGH TODAY WE ADDRESS SOME KEY AREAS OF UNCERTAINTY, WE WILL HAVE CHALLENGES AHEAD // line is in sight,” said Grobler.

He went on to highlight progress in Louisiana, which he said was now 99% complete, with construction 96% complete and capital expenditure at $12.2 billion with projections placing the final cost between $12.6 and $12.9 billion.

“The Ethane Cracker, which is the heart of the project, reached beneficial operation in August this year, a landmark milestone for us. With

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the Cracker, LLDPE and EO/EG units operational, more than 60% of LCCP’s output is now online,” Grobler explained.

“By the end of this calendar year, with the LDPE plant online, the LCCP will be around 90% operational, based on nameplate capacity or gross production; or around 85% operational, based on steady state external sales. The Ziegler unit – the largest of the remaining units – has now reached more than 80% construction completion. As mentioned earlier, we are focused on a balanced cost and schedule execution of these last units and hence, forecast beneficial operation of the ETO unit in Q3 FY20, and the Ziegler and Guerbet units in Q4 FY20.

“Notwithstanding the significant and disappointing challenges related to LCCP, we believe that this world-scale facility significantly strengthens our position in the global chemicals market,” he said.

Going forward, Sasol will look to complete in America without further

delay or cost increase. The company will also look to restore confidence in its brand, and will look to reposition itself as an energy company with a sustainable model. For this reason, Grobler is looking to create a new culture within the business while reducing carbon emissions.

CULTURE SHIFT “LCCP has highlighted the importance of creating the right culture and control environment where open and transparent dialogue is encouraged.

We as management need to change our conduct and set the tone for the rest of the organisation. This is completely in line with our ongoing culture transformation programme, and a critical aspect of new and enhanced controls being introduced throughout the group.

“Nearly 85% of all our greenhouse gas emissions emanate from our South African operations, necessitating a particular focus here,” he said.

SASOL

The company is looking for a 10% reduction by 2030, bringing greenhouse gas emissions down from 56 million tonnes of CO2 to 50 million.

As the second largest emitter of greenhouse gases in South Africa, Sasol’s operations, particularly the Secunda chemical complex, pump out the same emissions as four power stations. Various ideas are being discussed for reducing the company’s footprint, and management will be incentivised for achieving various goals.

Hermann Wenhold has been installed as Chief Sustainability and Risk Officer and he is certain that the business must change. “As we contribute and respond to the global transition to a lower-carbon future, business as usual is no longer possible,” he said.

“Our business, particularly in South Africa, will be impacted in multiple ways. These include potential changing demand for our products, new policy requirements, higher costs from the transition to a lower-carbon future and physical climate change impacts on our operations. We are adapting as the transition takes place. Therefore, we have adopted a structured approach and are already executing on our emission-reduction ambitions. Our first goal is to reduce by 2030 the absolute GHG emissions from our South African operations by at least 10%, off our 2017 baseline.”

Since 2005, Sasol has improved its energy efficiency by 21.7% in South

// I BELIEVE WHAT SASOL NEEDS TO MOVE FORWARD: IS REALISM, FOCUS AND DELIVERY AND I AM COMMITTED TO MAKING SURE THIS HAPPENS //

Africa and 19.5% globally.

“By reducing emissions through alternative feedstocks and technologies such as renewable energy, we believe our products, produced in an increasingly sustainable manner, will serve an important market need, while addressing climate requirements,” adds Wenhold.

Sasol will no longer embark on any new coal- and gas-to-liquid projects, and will not add new refining capacity.

“We are working towards finding impactful, economic and socially acceptable solutions to reducing our emissions, especially in South Africa, where our challenge is elevated, given our coal-based operations,” reminds Grobler.

With LCCP nearing an end, ensuring the thousands of employees around the world get on board with the company’s new strategy, and a resilient culture is fostered, Fleetwood Grobler must get his tactics right.

Forbes Africa reported last year that ‘without a positive corporate

culture, many employees will struggle to find the real value in their work, and this leads to a variety of negative consequences for your bottom line’.

Research from Deloitte backs this up, finding that 94% of executives and 88% of employees believe a distinct corporate culture is important to a business’ success.

Grobler is clear what he thinks is needed to continue driving this South Africa success story forward.

“I believe what Sasol needs to move forward: is realism, focus and delivery and I am committed to making sure this happens,” he said.

With LCCP almost over the line, and with a new leader providing a single route forward, the future looks bright for Sasol.

WWW.SASOL.COM

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TANESCO

Bringing Light

and Growth Across Tanzania PRODUCTION: Timothy Reeder

Tanzania Electric Supply Company (TANESCO) is the sole provider of electricity in Tanzania, and owns the vast majority of the electricity generating, transmitting and distributing facilities across the Tanzania mainland. It has worked tirelessly to electrify more and more rural areas of the terrain which would be otherwise unconnected, and now looks to hybrid solutions to secure the country’s lofty generation aims.

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INDUSTRY FOCUS: INFRASTRUCTURE

//

At the turn of the century the first public electricity supply in Tanzania, then Tanganyika, was established by German colonialists at Dar es Salaam. In 1931, the Government handed over the undertaking at Dar es Salaam to private enterprises; one of these companies was the Tanganyika Electric Supply Company Ltd (TANESCO), later merging with another - the District Electric Supply Company Ltd (DARESCO) - in 1964 and becoming the Tanzania Electric Supply Company (TANESCO) that has shaped the country’s power today.

Following Tanganyika’s gaining independence in 1961, the government acquired the company in its entirety by 1975, becoming its sole shareholder.

Today, TANESCO is a parastatal organisation under the Ministry of Energy and Minerals and generates, transmits, distributes and sells electricity to the Tanzania mainland, and sells bulk power to the Zanzibar Electricity Corporation (ZECO) which is in turn sold to the islands of Unguja and Pemba.

The Tanzania Development Vision 2025 envisages that GDP per capita will rise from USD$640 to at least USD$3000 by 2025. Central to achieving this will be rapid economic growth propelled by reliable, affordable and environmentally friendly electricity

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supply, and generation capacity will have to increase from the current 1583 MW to at least 10,000 MW by 2025.

“Our mission is to generate, transmit and supply electricity in the most effective, competitive and sustainable manner possible. We strive to be an efficient and commerciallyfocused utility supporting the development of Tanzania.”

RURAL ELECTRIFICATION Electrification of rural areas and small townships has been a major priority for TANESCO throughout its operational lifetime, since the declaration of a 1965 policy by the Tanzanian Government.

It was agreed that if TANESCO was required to provide power supply to more economically precarious townships, this would be subsidised by either the Government, the local authority or prospective large consumers in the areas.

TANESCO’s five off-grid substations remain vital to bringing power to areas which would be otherwise unconnected, and the Netherlands’s Zwart has been an integral partner to making this reality.

“Our power plants ensure that there is reliable and stable electricity in rural and remote areas,” the company explains. “A large area in Tanzania has

// WE STRIVE TO BE AN EFFICIENT AND COMMERCIALLYFOCUSED UTILITY SUPPORTING THE DEVELOPMENT OF TANZANIA // access to power thanks to Zwart, where it has more than 25 years’ experience of facilitating off-grid power on behalf of Tanesco. Our specialists have realised more than one hundred of these reliable and cost effective power plants in Africa.”

Zwart’s off-grid power plants are trusted to deliver power in the most challenging environments throughout the world, helping to provide communities, businesses and utilities with a reliable source of power in places where the electricity grid is unreliable or not present. The plants utilise a mix of solar, diesel and, where possible, battery storage, to ensure that reliable, cost effective power is on tap at all times.

“Zwart’s Energy Solutions enables businesses and communities to flourish in regions where the investment

TANESCO

When it matters most 90

7000

100+

Years of experience

Systems delivered worldwide

Professionals

24/7

>75

1200+

Service capabilities

MW installed power in Tanzania

Sets under service contract

Ngara

Biharamulo

Loliondo

Kibondo Kigoma

Tanzania

Kasulu Sumbawanda Mpanda

Ludewa Mbinga

Iyonga Namtumbo Tunduru Songea

25 Years of partnership with Tanesco

Zwart your partner for • Off-grid power plants • Solar/diesel/battery hybrid solutions • Emergency/back-up powerplant solutions • Services info@zwarttechniek.com

zwarttechniek.com

needed to connect to the grid is just too great,” Zwart clarifies, “or, in the case of a national park in Tanzania, where installing overhead lines would have impacted the local environment. In such cases an off-grid power plant provides the perfect solution.”

BANKING ON MINING A new revenue plan sees TANESCO looking to mining firms to raise revenues, as it begins operating profitably. Large mining companies produce hundreds of megawatts of electricity using subsidised diesel in order to meet demands for better power alternatives.

However, improved generation and distribution capacity which increases alongside TANESCO’s financial might is leading the government to conclude that all mining companies should be connected to the national grid. Energy Minister Medard Kalemani is adamant that companies should proactively seek new business, rather than submitting to their historic tendency to wait for it to come to them.

He added that with TANESCO becoming a profitable entity, the time had come for money to be reinvested into power generation to meet the demands of various segments.

“We no longer depend on government subsidies,” Kalemani stated. “We expect to register a Sh9 billion operating profit this year. In

// A COMBINATION OF SOLAR POWER AND DIESEL GENERATORS ENSURES THAT ELECTRICITY IS GENERATED IN THE MOST ENERGYEFFICIENT AND ECONOMICAL WAY // www.enterprise-africa.net / 123

TREATED TIMBER PRODUCTS (TTP) SPECIALIZES IN THE PRODUCTION OF TRANSMISSION, TELEPHONE, FENCING AND BUILDING POLES. TTP was established in 1939 and is now the largest producer of Utility Poles in the Southern Hemisphere. With our six treating plants strategically positioned near Durban and Maputo harbours, we are able to serve the local and export market with comparative ease.

Our transmission poles are pressure treated with either Creosote or Copper Chrome Arsenic (CCA) to meet the South African National Standard SANS 754:2013, Tanesco S11 and Kenya KS516 or any other recognized national VY PU[LYUH[PVUHS ZWLJPÄJH[PVU TTP carries a large stock of treated and untreated poles, giving us the ability to meet large orders at short notice.

+27 (0) 33 342 2679 export@treatedtimberproducts.com www.treatedtimberproducts.com

TANESCO

2015, TANESCO’s revenues stood at Sh9 billion per week but this year we are making Sh46 billion per week.

If we can connect large mining companies, we will raise our earnings.”

Kalemani conclude by urging mining companies to present their transformer requirements to TANESCO, in order that they can be distributed to the companies as required.

TANESCO is also mobilising in collaboration with the Energy and Water Utilities Regulatory Authority (EWURA) to curb the illegal connection to power in the Arusha region. Arusha Region TANESCO Manager Herini Mhina explained that various strategies had been implemented to combat the scourge, including the compulsory registration of all electrical contractors

// OUR MISSION IS TO GENERATE, TRANSMIT AND SUPPLY ELECTRICITY IN THE MOST EFFECTIVE, COMPETITIVE AND SUSTAINABLE MANNER POSSIBLE //

within the EWURA system and forbidding any unregistered personnel from performing electrical work.

“We will deal with all electrical contractors who sign customers’ forms outside TANESCO offices because that is not allowed; that has to be done inside our offices within the laid down procedure and there will be no bureaucracy.” Mhina clarified that this would be closely monitored in order to eliminate the possibility of further contraventions.

SOLAR FUTURE Africa is a leader in hybrid power; with only 22% of Africa’s population having access to power, areas with suitable climates are ideally placed to house a solar hybrid power plant as a vital solution. Faced with rapid growth in electricity demand, the Government of Tanzania has set the goal of increasing the installed generating capacity, reflected in the implementation of the 2016 update of the electrical system master plan.

In tandem, TANESCO has decided to increase the share of renewable energies in its energy mix to 40%, for both environmental and financial reasons.

The Citizen reported at the end of last year that TANESCO had received 52 bids from local and international solar

developers desperate to be a part of the construction of large-scale solar PV projects across six regions. With a combined capacity of 150 MW, TANESCO aims to achieve power generation from plants in the regions of Dodoma, Singida, Shinyanga, Mwanza, Simiyu and Iringa over the next two years.

The tender scheme would represent the first real attempt to bring large-scale solar to the sub-Saharan African nation, if implemented, and would significantly boost Tanzania’s efforts to implement mini-grid solar projects to improve the share of renewables in its energy mix. Zwart’s own hybrid solutions are found throughout Africa, and are crucial to enabling communities to flourish.

“Our hybrid off-grid plants power communities and businesses in developing countries. A combination of solar power and diesel generators ensures that electricity is generated in the most energy-efficient and economical way. We have already installed over 100 power systems in Africa,” Zwart concludes, “driving local businesses and connecting these communities to the world.

WWW.TANESCO.CO.TZ

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CASHBUILD

More Stores

to Come for Cashbuild PRODUCTION: David Napier

Leading retailer of quality building materials and associated products, Cashbuild, has been faced with extremely tough market conditions as it searches for further growth across southern Africa. Fortunately, commitment to a strict strategy has helped the business to maintain positive results, resulting in an optimistic outlook for the future.

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INDUSTRY FOCUS: CONSTRUCTION

//

Cashbuild is a real rarity in South Africa. It’s one of those companies that doesn’t crop up all that often – a JSE-listed, that the general public still seems to trust and enjoy. So many corporates that go from small, regional start-up to major international player lose the trust of the market. There is a negative sentiment that surrounds big business. The consumer is now more aware than ever about where their money goes, and they are not keen on lining the pockets of fat cat executives. Much more popular is the idea of shopping local, helping the owner-run and managed business, being part of a movement towards sustainability.

But those big companies that have not strayed from their roots, those that have remained committed to their values, and those that have always put their customer at the forefront of planning – rather than becoming embroiled in an endless pursuit for profit – are the companies that have grown to become trusted, respected, and continually top performing.

Cashbuild is the perfect example. Opening its first store in King Williamstown in 1978 (this

// WE REMAIN COMMITTED TO OUR STRATEGY OF BEING ONE OF THE LEADING SOUTHERN AFRICANBASED RETAILER OF BUILDING MATERIALS AND PRODUCTS, PROVIDING THESE MATERIALS AND PRODUCTS AT THE BEST VALUE, DIRECTLY TO THE PUBLIC // 128 / www.enterprise-africa.net

store is still trading today), quality customer service and strong product range delighted customers, helping Cashbuild to grow. By 1986, the company was listed on the JSE and its 27 stores were turning over R87 million. Today, the company has more than 310 stores all over southern Africa and stays true to its mission of providing products at the lowest possible prices and always have advertised line in stock.

Thanks to this commitment, Cashbuild is now universally recognised as southern Africa’s largest retailer of quality building materials and associated products, selling direct to a cash-paying customer base through its large chain of stores.

After acquiring the business of P&L Hardware and Buffalo Timbers in 2016 and 2017 respectively, Cashbuild has been looking for further growth as it tries to conquer 30% of the market.

The company’s customers are made up mainly home-builders and improvers, contractors, farmers, traders, as well as all other customers requiring quality building materials at the best value. In South Africa, while this market has been subdued in recent years – suffering from the fallout of the wider macro-economic environment – it remains a big sector, with a lot of potential (especially in a country where at least 2.1 million new homes are still needed).

Earlier this year, the Financial Mail described South Africa’s DIY retail stores as ‘mostly immune to economic downturns’ but as the challenging period lengthened, conditions began to take their toll. A VAT rise, increases in the fuel price and poor wage growth have left consumers with less disposable cash, and many have shelved home purchase plans and home improvement projects.

Stats SA released figures that showed total retail sales growing only 1% in 2018’s Q4, however, for hardware, paint and glass retailers, sales shrank 1.5% across the same period

// A CRITICAL ELEMENT IN THE ACHIEVEMENT OF OUR STRATEGIC OBJECTIVES IS A SUSTAINED AND SUSTAINABLE INCREASE IN THE NUMBER OF CASHBUILD STORES // The South African economy has been in a stagnant state for some time, flittering between modest growth and technical recession for the past decade. But, with government debt and continued slow GDP growth, ratings agencies have looked to South Africa as a market that could be worthy of a downgrade. Essentially, this would result in government having to pay more to service its debts, leaving less money to service social initiatives and infrastructure, including home building.

Growth in the country is not expected to exceed 1% in 2020, despite a previous prediction of 1.7%.

Further forward, in 2021, growth is now forecasted half a percent lower than previously thought, at 1.3%.

For the consumer on the ground, this is not good news. And when the consumer is feeling the pressure, Cashbuild feels it too.

Fortunately, Cashbuild has seen highs and lows before; it has faced multiple recessions and socioeconomic changes across different nations in southern Africa. When things get tough, Cashbuild gets strong, and continues to serve clients with the best products at the best prices, with a unique approach to each area that it operates.

CEO, Werner de Jager said, as Cashbuild released its Integrated

CASHBUILD

Report at the end of June, that conditions were tough but, because of the company’s fantastic people, things were moving in the right direction.

“This has been my toughest year in my 15-year tenure at Cashbuild,” he admitted. “Both the second half of 2018 and the first half of 2019 were disappointing, but I am pleased to report that due to the tremendous efforts by the Cashbuild team to control costs, the second half of 2019 improved.”

De Jager, who gained his CA(SA) in 1994 before joining Cashbuild as Finance Director in 2004, was reasonably satisfied with the company’s performance, highlighting new store openings as a real source of success.

“The Cashbuild business in South Africa performed at acceptable levels bearing in mind the weak economic environment,” he said. “Gross margins

improved, notwithstanding the highly competitive trading conditions.

Expenses were well controlled resulting in a 9% increase in operating profits. On the other hand, the P&L Hardware business experienced good sales growth at 11%.”

Overall, the numbers were positive. The group reported revenue growth of 6% to R10.8 billion; gross profit growth of 6% to R2.7 billion; operating expenses increasing by 3% in existing stores; and headline earnings of R434 million, an increase of 2%.

The increase in revenue is primarily attributable to sales growth experienced by 34 new stores opened since 1 July 2017 contributing 3% of the increase.

By sticking to long-held core values, the company has come through a difficult trading environment and is

positioned for further growth. In 2017, the company made its first move into Zambia, opening a store in Kabwe.

The company is already present across South Africa, Botswana, Swaziland, Lesotho, Namibia and Malawi, and Zambia was the obvious next step. But it has not been a straightforward move and, while still viewed as an important strategic move, Zambia is receiving attention to maximise potential.

“Our venture into Zambia has also been more challenging than initially anticipated. During the year we approved the opening of one new store in Lusaka, which will happen in the first quarter of the new financial year. The plan is not to open more stores until the situation has improved in that country,” said de Jager. continues on page 132

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PPC, STRENGTH AND LONGEVITY INTO THE FUTURE The real threat of using sub-standard cement The cement industry is seen as a good indicator of a country’s economic growth as it is the key input material in infrastructure, development and much like the rest of the modern world, the foundation of South Africa is built on this premise. Yet, according to Njombo Lekula, Managing Director of PPC RSA, sub-standard cement products are threatening the built environment industry and placing South African lives at risk. Usage of sub-standard cement has various implications that may negatively affect the sustainability of buildings and structures thereby leading to increased repair or maintenance costs, injuries and fatalities due to structural failures or collapse.

During a normal market surveillance exercise whereby competitors’ products were all tested for comparison, PPC found that some products supplied by cement producers were substandard and warranted further investigation.

In an effort to protect the greater South African cement industry and consumer, PPC appointed, Beton-Lab, a South African National Accreditation System (SANAS) accredited independent laboratory in September 2017 to

physically purchase the bags themselves in order to maintain the chain of custody and assure no interference from any outside party.

Part of the process was to take photographs of each bag (front, side, back panels and bag weights) to verify Letter of Authority (LOA) numbers, cement type and strength class. The weights of the bags were checked and the EN strength testing in accordance with SANS 50197 for 2, 7 and 28 days was performed. The South African Bureau of Standards (SABS) prescribed uncertainty of measurement allowance of 2.5% was applied when analysing the resultant data. The results show the inability to produce a consistent quality product and thwarting of standards. Alan De Kock, MD of Beton-Lab says, “As an independent laboratory our work is tightly controlled, ensuring accurate data that is in no way influenced by outside parties.”

The report was recently released and the findings were shared with the SABS and the National Regulator for Compulsory Specifications (NRCS), showing continued nonperformance of the cements tested. According to Lekula, non-conformity of strength and weights of some products ranged from 11% to

73% of the sample set. “This failure to conform to local standards not only has an impact on the structural integrity of buildings, but also poses a threat to possible damage of property and even loss of life should the walls come tumbling down.�

It was also found that most of the sub-standard cement products carry the SABS mark. The SABS stamp is a mark of regulatory approval, instilling trust in the product being sold and, if used in accordance with the instructions, will result in a structure that is robust and safe.

strength before 28 days. The durability of mortar or concrete is primarily dictated by the amount and the strength performance of the cement that is used.

Retailers, builders and construction companies are also at risk of future legal action or loss of income as selling and using these substandard products can have a negative effect on the perception consumers have of their businesses and standards.

PPC.AFRICA | 0800 236 368

It takes up to 28 days for cement to develop strength and fly ash does not start developing

It takes up to

28 DAYS

1. Total samples tested

2. Cement products sold in retail

=274

=14

4. Amount of samples failed

5. One company failure rate

= 33%

= 73%

(total of all companies)

for cement to develop the strength as indicated on the bag.

3. Retesting Products

= 31 (23%)

Duration of test period Âą 2 years

INDUSTRY FOCUS: CONSTRUCTION

continued from page 129 “Zambia is currently not performing as expected due to various factors which have been identified and addressed or are in the process of being resolved,” he added. “The cost of getting stock into Zambia from South Africa is excessive and negatively contributes to our competitiveness in that country. Through a logistics company, a process is being explored and will be introduced with a view to reducing the cost of getting stock into Zambia. Furthermore, an aggressive drive is in place to engage with more local suppliers which will improve our competitiveness. In addition, the medium of marketing has been revisited and a new strategy, more applicable to the local environment, has been put in place, which includes increasing the brand’s awareness.

Excessive stock levels and slow-moving stock have also been addressed with effective reduction plans in place.”

132 / www.enterprise-africa.net

Other developing markets in Africa have been extremely positive for Cashbuild and de Jager highlighted Botswana and Malawi as stars where double digit operating profit growth has been achieved.

“We remain committed to our strategy of being one of the leading southern African-based retailer of building materials and products, providing these materials and products at the best value, directly to the public,” he said.

“Opportunities to expand further into the rest of Africa will continue to be carefully considered and their viability assessed, as and when they become evident.”

Going forward, the wider economy, along with Cashbuild’s sector, will remain under pressure.

Many issues combined – chiefly, the Eskom situation – will continue to disrupt investment and future planning, but Cashbuild has developed a sound strategy.

// CASHBUILD’S STRATEGY REMAINS ROBUST, AND THE IN-DEPTH QUALITY PRODUCT RANGE THAT IS TAILORED TO THE SPECIFIC NEEDS OF THE COMMUNITIES THE GROUP SERVES // “For the first six weeks of FY2020, total sales amounted to R1.2 million, representing an increase of 1% over the prior period, which is an indication of the continued tough trading conditions,” said de Jager.

“We are expecting the DIY retail market to remain exceptionally competitive going into the first half of FY2020 given the immense financial pressure under which all consumers

CASHBUILD

find themselves and the muted South African macro-economic growth. The alarming increase in retrenchments across all industries does not bode well for our market.”

To negate negativity, Cashbuild will continue to roll out further stores to bolster its presence. Each store has its own manager and emanates local knowledge for local conditions. This is how the company manages to retain its fantastic and loyal customer base.

“A critical element in the achievement of our strategic objectives is a sustained and sustainable increase in the number of Cashbuild stores, as well as the physical location of each store within its catchment area,” detailed de Jager in June. “The group plans to open on average 10 new stores per year.

These additional stores are approved on the basis of identified locations showing clear potential to meet strict

// THIS HAS BEEN MY TOUGHEST YEAR IN MY 15-YEAR TENURE AT CASHBUILD //

financial and operational criteria.

Furthermore, from a human resources perspective, investment in a new store requires significant operational and store management experience to be available within the group for deployment into new locations.”

Adding to a continued store network expansion, Cashbuild is also busy developing its ecommerce offering, bringing the product portfolio online for easy ordering. This forms another tactic from Cashbuild to do all that it can to help its customers achieve.

“Cashbuild has an e-commerce channel which its currently limited to Gauteng and kept at a small scale to fully understand impact on our business. The planning phase of allowing ecommerce functionality in every store is complete, and the first phase of revamping the website to support this initiative is close to completion. Expected roll out will be in the 2020 calendar year, and we will maintain our normal cautious approach,” said de Jager.

Recently retired Cashbuild Board Chairman, Stefan Fourie said that the well-researched strategy employed by the company will serve well going

forward and, if and when the economy does swing, Cashbuild will undoubtedly capture further market share.

“Cashbuild’s strategy remains robust, and the in-depth quality product range that is tailored to the specific needs of the communities the Group serves, as well as the adherence to the Cashbuild Way, positions the Group well, for any slight upswing in the economy,” he said.

Importantly, even in these trying market conditions, Cashbuild has managed to forge and maintain close relationships with its customers. By providing much-needed products at the best prices, and being available country-wide, Cashbuild has built that much-desired position of offering local service but being backed by big business. The demand for housing and home improvements will always continue, and the economic cycle will swing. For Cashbuild, consistent strength will always be displayed.

WWW.CASHBUILD.CO.ZA

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MASSBUILD

Building for the Future with New Store Concept PRODUCTION: David Napier

As the economy throws all it can at retailers, derailing those that are not adaptable to changes, only the strongest and most robust will survive. Massbuild is a leader in its industry, employing tried and tested strategies, to bring affordable pricing across a wide range of products to customers all over southern Africa. Even in these trying times, the company still boasts decent results and fierce growth ambitions. www.enterprise-africa.net / 135

INDUSTRY FOCUS: CONSTRUCTION

© Massmart

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Following the announcement

by Statistician-General, Risenga Maluleke, that South Africa’s economy shrank 0.6% in 2019’s third quarter, all businesses are re-evaluating expectations for 2020 – New Year’s resolutions are set to focus around keeping heads above water while swimming against the current. This is especially true in the retail and construction sectors where confidence, sentiment and spend are at damagingly low levels.

COMING UNSCREWED? Retail sales increased just 0.2% in September, after a modest 1% in August, leaving companies uncertain that a rebound will occur. This came after a volatile 3.2% GDP decline in Q1 and then a 3.1% improvement in Q2. A cut of SA reserve Bank interest rates in July failed to spark renewed spending, leaving retail spending just 1.1% higher than the same period in 2018.

In the DIY retail space – a sector traditionally more immune to economic

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downturn – the struggle has been very real. Higher taxes (VAT), higher fuel costs, high inflation and poor wage growth have left consumers with little disposable income, and for the last quarter of 2018, hardware, paint and glass retailers sales shrank 1.5%. The big names are now competing for existing market share rather than a slice of a growing pie. While the major national chains still continue to post reasonable results, they are nowhere near successes of the past, and this is worrying for those at the top.

On the professional side of the industry, the corporate building and construction sector has been failing for some time. Lacking infrastructure spend and historic mismanagement in the industry has led to mistrust and financial difficulty, and the jobs that are left are too small for the big businesses to sustain. With many of the majors now in business rescue, or gone from the market altogether, retrenchments and slowdowns have been widespread.

This backdrop has been the norm

for some time for those active in the sector, including Massbuild – the Massmart division operating four separate brands across southern Africa: Builders Express, Builders Superstore, Builders Trade Depot, and Builders Warehouse – is doing everything it can to delight customers and drive loyalty so that demand does not crumble.

SA BUILT Massbuild is a pioneer of the warehouse style, mass discounting for bulk buyers model in South Africa. ‘Pile them high, sell them cheap, and make the parking lot big’ is the concept and mantra championed

by America’s Walmart and Founder Sam Walton. The billionaire entrepreneur utilised this model across Walmart and Sam’s Club in the USA, growing a business from small, regional operation to one of the world’s largest companies, making him one of America’s richest men. Right from the start, Walton’s core value was always about offering the cheapest prices while bringing a large product portfolio for customers.

MASSBUILD

When Walmart entered Africa in 2011, purchasing Massmart for a reported $4.2 billion, the ideals remained the same. Massmart had, for many years, gained a big following thanks to its Walmart-style operation, quickly becoming the biggest retailer of basic foods in the region with sales of around $6.8 billion.

“Our business is built on high volume, low cost and operational excellence which enables our price leadership,” says Massmart.

Massmart started building its DIY and construction arm in 2003 when it purchased five Builders Warehouse stores operating in Johannesburg and Pretoria. This was the start of a mass buying spree that went on for the next few years, with Massmart buoyed by early financial successes in the DIY sector. When the economy is flush,

people buy new homes, but when things dip, people choose to spend on improvements on their homes rather than moving. This helped the industry to remain somewhat protected against economic downturn. Hardware retailers started to become the golden boys for JSE-listed buyers.

Now, the Massbuild division remains a vitally important element in the Massmart strategy.

“Builders Warehouse and Builders Express are both pioneers in introducing retail principles to the South African DIY and home improvement sector and attaching garden centres to hardware stores. The clean, friendly and uncluttered look and feel of our stores offer customers a shopping experience not traditionally associated with the industry. Our new stores aim to introduce ‘retail theatre’ where lighting,

// OUR BUSINESS IS BUILT ON HIGH VOLUME, LOW COST AND OPERATIONAL EXCELLENCE WHICH ENABLES OUR PRICE LEADERSHIP // colour and ambiance enhance the shopping experience, signage is clean and bold, and product displays are enticing,” the company states.

“Several of our private brands, including Mastercraft and Builders Pride, have become household names, with our customers assured of stringent quality control and best supplier

Stratagem Training Services has been partnering with Massbuild since 2006, providing bespoke retail finance training solutions for all levels of Massbuild staff and management, with programmes such as BusinessWise Plus, Retail Finance, Retail Management Finance, Senior Financial Management Programme.

Stratagem is proud to have been associated with Massbuild right from the beginning. We are grateful to Massbuild for their ongoing support and investment in their people.

www.stratagemtraining.co.za • info@stratagemtraining.co.za • Tel: +27 11 234 0884

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INDUSTRY FOCUS: CONSTRUCTION

practices. In both the residential and commercial property markets, Builders Trade Depot’s value proposition to customers is our ability to consistently deliver an appropriate, professional range at highly competitive basket prices, combined with exceptional contractor support services in a relationship-driven environment.”

STILL STRONG Thanks to this clever and considered strategy, that is proven in Africa and globally, Massbuild is one group that has managed to buck the trend in South Africa, with its stores posting largely positive results, and the group continuing with strength. Clearly, the results are not where management would want but, with the industry and macroeconomic environment not conducive to meaningful growth, posting modest improvements is classed by most as a success.

For the first half of 2018, Massbuild recorded sales of R6.413 billion. This represented a 7.6% increase. For the wider Massmart group, 2018 saw a 2.9% growth in total sales in what the group termed a “difficult economic environment”. In the first half of 2019, Massmart reported “the South African consumer environment remains challenging with no significant improvement during the past six months. Factors that have impacted

// WE ARE MINDFUL THAT OUR COMMITMENT TO ‘SAVE CUSTOMERS MONEY SO THAT THEY CAN LIVE BETTER’ IS ESPECIALLY RELEVANT IN DIFFICULT ECONOMIC CIRCUMSTANCES // 138 / www.enterprise-africa.net

MASSBUILD

// BUILDERS HAS DIGITISED ITS INSTORE RETAIL EXPERIENCE BY OFFERING FREE WIFI AND INSTALLING 44 HIGH DEFINITION SCREENS THROUGHOUT THE NEW BOKSBURG STORE // trading performance are well-known to the market and included low consumer confidence, negative GDP growth (-3.2%) in quarter one and increased unemployment (29%).”

But, Massbuild continued to display muscle even where others have struggled.

“Total sales of R6.7 billion increased by 5%, while comparable sales were up 1.8%. Contractor sales remain under pressure and were below the prior period,” the company reported. “The current period marks one of transition for Massmart. The company is fortunate in that there is significant depth of experience across the specialist areas of each division. This experience, together with the fresh perspective brought by new senior management will see

the business well placed to remediate identified short-term performance issues and reform the operating model.”

NEW STORE PROTOTYPE In April, Builders unveiled a new store prototype at the Boksburg branch. At 15,170m2, the new store brings a more versatile retail experience by offering shoppers a wide range of in-store services, eliminating shoppers’ need to trek between a slew of physical shops to make informed decisions about their DIY, home improvement and construction needs.

Many digital and technological advancements are aimed at helping customers make informed choices, with ease.

“Builders has digitised its in-store retail experience by offering free WIFI and installing 44 high definition screens throughout the new Boksburg store. These digital and physical displays give customers the ability to order in store, order within specific departments, shop the extended range of products as well as view promotions and search for product information or inspirational DIY content. They also allow customers to watch ‘how to videos’,” the company states.

The new store also offers 3D printing services, one of the first stores of its kind in Africa to do so, for both businesses and personal use.

“Prototyping, domestic replacement parts and modelling requirements

are just some of the examples of what is now within reach for Builders customers,” the company says.

After opening on May 1, the Boksburg branch will become the flagship and example for all upgrades going forward.

Internally, successes like this are important and offer renewed hope and optimism, which employees can share with customers.

“We are mindful that our commitment to ‘save customers money so that they can live better’ is especially relevant in difficult economic circumstances,” Massmart affirms. “This requires that we are able to continually identify opportunities to adapt and improve upon our low cost operating model. To this end a priority is to leverage group scale more effectively to enable our business units to optimise store portfolio performance, improve buying and logistics efficiencies and reduce costs.”

While the second half of 2019 has proven to be just as hard and the first, those that have a proven model, and a strategy that spawns success, are those that are set to thrive, and those that thrive in hard times are those that boom when things pick up. For Massbuild, the future looks bright.

WWW.MASSMART.CO.ZA

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ZAMBEEF

Silver Jubilee for One of

Zambia’s Meatiest PRODUCTION: Karl Pietersen

As one of the true success stories of southern African business, Zambeef is celebrating the quarter century, growing from a single butcher shop in Kabwata, south Lusaka, to a listed, integrated cold chain food products and agribusiness company which impacts the lives of almost everyone in the country. Right now, there is much to celebrate for Zambeef.

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INDUSTRY FOCUS: AGRICULTURE

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As the largest integrated cold chain food products and agribusiness company in Zambia, Zambeef holds significant responsibility on its shoulders. The country is faced with acute food insecurity, a shortage of clean and safe drinking water, chronic high malnutrition, and an energy deficit and livestock diseases according to the International Federation of Red Cross and Red Crescent Societies (IFRC) and other Red Cross Red Crescent partners working in Zambia.

“The devastating effects of prolonged dry spells coupled with the late onset of the rainy season have resulted in poor agricultural production and reduced access to food, contributing to acute food insecurity conditions across the country,” the IFRC said in September.

// IT HAS BEEN A LONG AND HARD AND ROCKY ROAD BUT A VERY SATISFYING AND REWARDING JOURNEY AND FROM THOSE VERY HUMBLE BEGINNINGS WE HAVE TOGETHER MANAGED TO CREATE THE LARGEST VERTICALLY INTEGRATED FOOD RETAILING BRAND IN ZAMBIA THAT NOW TOUCHES THE LIFE OF EVERY SINGLE PERSON IN THE COUNTRY // 142 / www.enterprise-africa.net

// AS FOOD PRODUCTION BECOMES A PROBLEM ACROSS THE WORLD DUE TO CLIMATE CHANGE IN ZAMBIA, WE ARE FORTUNATE THAT WE ARE ABLE TO PRODUCE OUR OWN FOOD // Even in metro areas, where populations and wealth are larger, the situation can be desperate. The country is facing economic woes with maximum GDP growth predictions coming in at just 2% - the lowest in a decade.

Inconsistent power supply, lacking national infrastructure, over reliance on imports, and crippling public debts are all taking their toll on a country which was an investor safe haven – thanks to its rich copper mining potential – just a few years ago.

The government urgently needs the private sector to chip in, and that is exactly what Zambeef is doing. A homegrown company, starting from nothing back in 1994; what was a small butchery business is now a national keystone employing more than 7500 people and delivering a range of different food products, through an integrated group of companies, to customers all over Zambia and the wider region.

Enterprise Africa highlighted the major growth story of Zambeef in 2016, and since then there has been ongoing success for the Lusakaheadquartered agriculture, processing and retail organisation.

Now a complex group with reach across several industry sectors, Zambeef’s operations are split into different businesses. Zambeef is involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The company also operates more than 200 retail outlets around Zambia and West Africa. At its core is meat, and the company now produces 18.1 million kgs of beef, 9.9 million kgs of pork, 16.9 million day-old and

processing 12.8 million kgs of chickens each year. On top of this, Zambeef also produces 19.3 million litres of milk each year and, in Zambia alone, has approximately 7787 hectares of row crops under irrigation which are planted twice a year, and a further 8694 hectares of rainfed/dry-land crops available for planting each year.

This is a private company that is making an impact, and acting as an example for others to follow when it comes to upliftment in Zambia. And the result of an ambitious and sustainable approach is a 25th anniversary celebration, where President Lungu congratulated the entire Zambeef team for an ongoing job well done.

SILVER JUBILEE In November, at the Taj Pamodzi Hotel in Lusaka, Lungu praised the company for empowering farmers by giving them a market for their products.

“I am delighted to be part of this very, very important occasion marking 25 years of the existence of Zambeef in Zambia. It has indeed been 25 years of feeding the nation. My government attaches great importance to the development of a productive, resilient, diversified, competitive and sustainable agricultural sector which spurs economic growth. Government is aware of the vital role the private sector plays in boosting productivity in the agricultural sector as well as driving economic growth. This is precisely what Zambeef is doing. It is indeed commendable,” said the President.

“There is no doubt that Zambeef plays a significant role in promoting value addition in the agricultural sector.

This is in line with my government’s policy of promoting value addition.

ZAMBEEF

The food sector in Zambia uses large quantities of locally produced raw cuts from major poultry producers such as Zamchick, a Zambeef subsidiary which grows day-old chicks from its own state-of-the art hatcheries and this is also commendable. Zambeef has demonstrated unwavering passion in ensuring value addition at every stage of production. Further, Zambeef has been supporting the implementation of the local procurement policy by buying livestock from farmers cross the country.

In beef processing, even hides are used by Zamleather to produce leather products. This is also in line with our government’s industrialisation agenda.

“It is gratifying to note that the company is one of the largest employers outside the mining sector and GRZ, providing decent jobs and a stable income to many of our people. For

the last 25 years, Zambeef has been a major player in strengthening the local agriculture sector, providing market linkages to our farmers and contributing to the country’s economic growth.

The company has been instrumental in supporting different categories of farmer through the provision of a dependable market.

“I extend special gratitude to the founders of Zambeef, Dr Carl Irwin and Mr Francis Grogan, for building a proudly Zambian company,” Lungu added.

At the event, which capped off a week of celebrations, senior management affirmed its commitment to Zambia and the country’s farmers.

“Zambeef is testimony to what entrepreneurship can achieve,” said CEO Francis Grogan. “This company began 25 years ago in 1994 from very, very humble beginnings. What we did have

was vision and energy and youth, and huge opportunity, and together with the incredible team of people we have assembled over the last 25 years, we have managed to create the Zambeef you see today.

“It has been a long and hard and rocky road but a very satisfying and rewarding journey and from those very humble beginnings we have together managed to create the largest vertically integrated food retailing brand in Zambia that now touches the life of every single person in the country.

“It is thanks to the enormous goodwill and support of all our stakeholders that we are the Flagship Company we are today. Today Zambeef accounts for over 1% of Zambia’s GDP and is the leading agribusiness in Zambia and the region.

“We are the champions of food

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// THE COMPANY HAS BEEN INSTRUMENTAL IN SUPPORTING DIFFERENT CATEGORIES OF FARMER THROUGH THE PROVISION OF A DEPENDABLE MARKET // security in Zambia. We are the largest business partner of farmers and employer in rural areas of Zambia

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promoting the procurement of locally produced raw materials and leading the way in poverty alleviation, food security, job creation and sustainable development of rural economies. Let me mention our loyal customers, our loyal and passionate staff, our long-term suppliers, the Meat & Grain Workers Union and also government, who have created the conducive business environment we needed to thrive,” Grogan added.

FUTURE PROOFING Co-Founder, Dr Carl Irwin said that the company should continue making the most of the resources on its doorstep.

“Zambeef has had a great impact on many lives in our country. Not only have we created over 7500 jobs, we

also contribute to poverty alleviation through all the small and emerging farmers we deal with in every part of the country. We have also played a big role in food security of Zambia. As food production becomes a problem across the world due to climate change in Zambia, we are fortunate that we are able to produce our own food,” he said.

Deputy Managing Director and CEO-Designate Walter Roodt – who will replace Grogan at the end of 2019 said: “Most businesses don’t survive 25 years. If you see the energy and passion channelled correctly, as it has been for all employees, that really is something that galvanises and that is why this is a strong family, not just employees and people working together. That passion is something we have to preserve, never

ZAMBEEF

mind the integrity, the dignity and the way we work together.”

In October, Zambeef announced that Mathews Ngosa would take over as GM at Zamhatch. This appointment is the perfect example of channelling passion correctly as Ngosa is one of the foremost animal science minds in the country. Active in the industry for more than 25 years, Ngosa holds double Master’s Degrees and has been CEO of the Poultry Association of Zambia.

// ZAMBEEF IS TESTIMONY TO WHAT ENTREPRENEURSHIP CAN ACHIEVE //

“I wanted to join Zambeef because my skills as an animal scientist would be put to good use.

I had worked with them before, so I knew the company’s culture and what they were out to achieve.

“My attitude towards work is to be a hard worker and a team player.

I’m not afraid to take on challenges that achieve results. I also have a great team; their dedication and expertise help us achieve the goals we set up for ourselves,” said Ngosa.

For Ngosa, Roodt, and all of the other seniors at Zambeef, the opportunities and challenges of the future are well-received. The climate will continue to change, the population will continue to grow, the demand for

accessible and affordable products will continue to rise, and the desire from farmers to join in the largest vertically integrated food business in the country will continue to grow.

Zambeef, which cites ‘being one of the most accessible and affordable quality protein providers in the Southern Africa region’ as its vision, is doing its part. As it expands, and as more farmers are added as partners, food security in Zambia will undoubtedly improve.

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Mathews Ngosa - the new general manager poultry at Zambeef’s Zamhatch division

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CARARA AGRO PROCESSING

The Pick of the

Pickle Bunch PRODUCTION: William Denstone

A product range headed up by the beautiful red cherry pepper, Carara’s firm focus on quality, reliability and consistency has enabled the grown substantially over the course of 12 years. Proud producers of a superior range of pickled products, Carara’s wares are a delicious addition to nearly any dish and created to the highest of standards.

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Carara this year celebrated the milestone of its 15th year of production, formed midway through 2004 by a group of ex-Zimbabwean farmers who moved south to avoid the political turmoil in their homeland.

Setting up a modern, state-ofthe-art processing facility in the small but appealing city of Grahamstown in the Eastern Cape, such a long and illustrious lifetime must have seemed a long way off for the group, who quickly began building relationships with local farmers for the supply of peppers, patty

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pans and jalapeños.

Subsequent expansion to the facilities has resulted in the installation and commissioning of a canning line, enabling Carara to produce a pasteurised, preservative-free product.

“Carara has a wealth of experience, and the capacity to produce quality pickled food products in a controlled environment,” says the company.

“We would like to remain recognised internationally as a quality organisation, specialised in Cherry Peppers and other pickled and pasteurised products.”

COMMITTED TO DEVELOPMENT Once it had placed its roots firmly in the soil of the Eastern Cape, Carara Agro Processing set about exporting its pickled products around the world, and a period of sustained growth coupled with high demand saw Carara open a second processing facility, the Natal Pepper Company in KZN, in which Carara is a 50% shareholder. To this day, quality and speed of delivery remain primary concerns throughout the company and its processes.

At peak production, Carara is the single largest employer in

INDUSTRY FOCUS: AGRICULTURE

JAR INSERTS

CAN INSERTS

DRUM INSERTS

Keeping our design solutions simple & usable, creating a winning environment that allows for partnerships in worldwide production distribution.

ViscoDisc™ is a South African innovation designed & developed to solve a packaging problem. It has successfully achieved its objectives, with a string of added bonus benefits that puts this simple looking invention into a class of its own.

This product is the ViscoDisc™ insert, which has been very successful in solving the perennial question of how to stop bottled produce from protruding above its preserving liquid.

For more information on ViscoDisc and their products go to www.viscodisc.com

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Grahamstown, with a full staff complement approaching 1200. Taken together, Carara and its subsidiary facilities have created approximately 2875 factory and 3000 on-farm seasonal jobs.

Alongside new equipment and improved efficiencies, Carara is looking at new product lines to bolster its exciting range and boost the productivity of its facilities.

“We’re always looking for new products, especially those that can smooth our production periods,” explained Managing Director, Mike Duxbury. “We’re a huge seasonal production facility and we want to spread our production time as long as possible.”

Recent exploration into products that can help in this regard have seen Carara branch into sweetheart peppers, fresh garlic and roasted vegetables. “The sweethearts can come in in January, February and March and we can get them in before the pepper season. It’s been fairly successful; we increased production from four tons to 150 tons and we’ve sold 40% of that this year already. We plan to increase production for next year because we believe in the product,” Duxbury detailed.

VITAL TO GDP South Africa’s exports represent a crucial element of the country’s gross domestic product (GDP) mix. The country has one of the 40 biggest export economies in the world and its chief exports include metals and minerals, coal, cars and associated products, and food stuffs such as fruits, vegetables, oils and wine.

Agricultural exports represented 10.8% of total South African exports in 2017, according to Fresh Plaza, and amounted to R127.69 billion.

Interestingly, South Africa is the second largest exporter of citrus fruit in the world, even though it is ranked 14th in citrus production; these exports amounted to R18.6 billion. Fresh Plaza revealed the Netherlands to have been

CARARA AGRO PROCESSING

SA produce’s number one importer in 2017 with spends totalling R11.56 billion. Second was the UK at R9.7 billion, and somewhat surprisingly, Mozambique third at R6.5 billion.

Meanwhile, Fin24 pointed out that in 2018, South Africa’s agricultural exports grew by 7% year-on-year to US$10.6bn, a record level in a dataset starting from 2001. “From a destination point of view,” Fin24 agreed, “the African continent and Europe continued to be the largest markets for South Africa’s agricultural exports, collectively absorbing 66% of total exports in 2018, measured in value terms.”

It too highlighted beverages, fruit, vegetables, wool, sugar and grains as the products leading the charge to foreign shores, while reporting Asia

// WE WOULD LIKE TO REMAIN RECOGNISED INTERNATIONALLY AS A QUALITY ORGANISATION //

to also be an important market for South Africa’s agricultural exports, responsible for a 25% share in 2018.

Agro-processing is a hugely important sector for the country, contributing large amounts of total GDP, supporting thousands of jobs, and contributing to the country’s trade deficit. The unfavourable weather conditions which prevail in South Africa must be carefully mitigated, however, as heatwave conditions and the late onset of rains have caused local supply failures in many parts of the country.

SHINING EXAMPLE A serious multi-year drought in parts of the Northern and Eastern Cape provinces has seen a number of small towns threatened by total water supply failures and livestock farmers facing financial ruin. Cape Town’s experience of extreme ‘Day Zero’ supply restrictions only adds to these fears, while weather forecasters seem unable to make reliable predictions more than a few weeks in advance.

Carara is a premier example of a successful agro-processing

business, an industry leader and an example to follow. President Cyril Ramaphosa signalled in the 2019 State of the Nation Address that potential expansion in agricultural production in South Africa would mainly be on export-oriented products, which will have been music to Carara’s ears. “We can’t complain,” summed up Duxbury, “the business is growing and remains financially sound. We are in a very fortunate place.

“We’ve developed a really strong grower-factory relationship without which we wouldn’t succeed. We know that without produce, we are not a business and we need quality fruits to provide the kind of quality our clients want. We put a lot of effort into giving back to the farmers.” As long as the water crisis can also be managed successfully, and exports continue to flow as a result, there is no reason why Carara can’t grow further and take a bigger chunk of its chosen markets.

WWW.CARARA.CO.ZA

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BRITISH AMERICAN TOBACCO SA

BAT Steps Up

Diversification PRODUCTION: Manelesi Dumasi

British American Tobacco SA continues to innovate and adapt to changing market conditions so that it can always thrive, even after a century of activity in one of its most important global markets. With new product categories stirring new demand, and awards for HR excellence, this is a business fulfilling its burning ambition in Africa.

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© BAT SA

INDUSTRY FOCUS: AGRICULTURE

//

As the second largest company listed on the JSE by market cap, the largest tobacco producer in SA by market share, and a company with more than a century behind it, British American Tobacco SA (BAT SA) certainly has a lot to live up to. Its almost 2000 employees are part of an international group that sells products across almost every country on earth. As custodian of some of the world’s most popular cigarette brands, British American Tobacco plays a vital role in agriculture, production, distribution, science and research, marketing, and sales, and is a leader in international tobacco trade.

Today, the World Health Organisation suggests that 1.1 billion people around the world smoke – around 20% of global population. But, since 2000, there has been a gradual decline in the number of smokers around the world, with many nations introducing warning advertisements

// BRITISH AMERICAN TOBACCO HAS ALWAYS BEEN A COMPANY FOCUSED ON ATTRACTING AND RETAINING THE BEST TALENT, NOT ONLY OFFERING EXCELLENT CONDITIONS, AND A DIVERSE CULTURE AND WORKING ENVIRONMENT, BUT ALSO ENSURING EXCITING CAREER OPPORTUNITIES IN THEIR WORLDWIDE LOCATIONS // 152 / www.enterprise-africa.net

on packaging and banning smoking in public places. From 2000 to 2015, 29 million people quit. The number of fatalities associated with smoking is still high, with seven million people dying each year globally. Many nations have signed up to global and regional targets to cut tobacco use in over 15s by 30% by 2025.

With that date fast approaching, for companies like British American Tobacco, the market is constantly changing, and there are many hurdles which must be overcome in order to remain relevant and to deliver for a market that is different one day from the next.

Vaping and smoking alternatives have taken rise in the market and BAT has extended its reach into this market, but following several high-profile health related stories emanating from around the world, the future of vaping is now also unclear.

For BAT SA, the company continues to do all it can to position itself as a reliable, trustworthy and responsible corporate citizen.

VAPE In August, the South African competition commission approved the acquisition of leading vaping products company, Twisp, by BAT SA. Twisp has around 70 stores nationally and is recognised as the largest multi-channel distributor of vape products and flavours in SA. The hope is that BAT can introduce Twisp’s range of risk reducing products across its wider international network.

“Twisp in South Africa brilliantly complements our well-developed existing New Category retail footprint in Poland, the UK and Germany. This footprint is of strategic importance to our future; allowing us to develop direct-toconsumer relationships, gain substantial consumer insight and the ability to fast pilot and test new product lines from our New Category brands.

“Consistency in this retail footprint will be critical for consumer navigation, and the roll out of a homogeneous

// CONSISTENCY IN THIS RETAIL FOOTPRINT WILL BE CRITICAL FOR CONSUMER NAVIGATION, AND THE ROLL OUT OF AN HOMOGENEOUS RETAIL BRANDED PROPOSITION HAS ALREADY COMMENCED IN EUROPE // retail branded proposition has already commenced in Europe,” said Kingsley Wheaton, Chief Marketing Officer, British American Tobacco.

In November, the company announced that it would widen its product portfolio and invest into new categories by looking closer at vaping, marketing through partnerships with global leaders such as McLaren Racing.

New categories include: VUSE for vapour products; VELO for modern oral products and glo for tobacco heating products. Since 2013, the company has invested $4 billion in product development, particularly surrounding reduced risk potential products.

“We understand global brands are important for our worldwide consumers - brands that they can trust, recognise and buy wherever they are in the world. We want to lead the industry across all our New Category products and believe the time is now right to simplify our brand portfolio, creating three strong, recognisable and trusted global brands. For these new consumer categories, both quality and trust are vital and this step further supports BAT’s leading ambition in the industry,” said Wheaton.

BRITISH AMERICAN TOBACCO SA

“We are at a very exciting stage of our New Category journey. Central to our leading role is continuing to develop remarkable products and trusted brands, whilst driving global awareness of them. The move to VUSE, VELO and glo is yet another exciting milestone in our New Category journey. We remain committed to accelerating the transformation of our industry and the growth of our brands.

“I am delighted that we’re celebrating the upcoming launch of our new global vapour brand, VUSE, in the UAE this weekend. Our fantastic partnership with McLaren continues to provide us with a truly global platform with which to accelerate our ambition with our New Categories business, which is focused on creating a better tomorrow for our consumers, shareholders, society and employees.”

Following media reports of tragedies in the USA and Europe, where vaping products had been associated with deaths and serious lung issues, BAT was at the forefront of those calling out for improved, increased and scientifically backed regulation to ensure consumer safety.

“As the world’s second largest vapour company, providing high quality products to more than 9 million consumers worldwide, we take consumer safety very seriously.

Quality and safety testing are a crucial part of the way we develop and manufacture our products and we scrutinise the ingredients we use in them,” said Dr David O’Reilly, Director of Scientific Research at BAT in September.

“We are fully supportive of the efforts of the various government agencies in the US, Canada and around the world who are working to understand the exact cause of the recent tragic consumer cases. To the best of our knowledge, no product developed or manufactured by BAT has been involved in these cases.

“However, these cases clearly demonstrate the need for robust and

effective regulation which ensures high product standards, particularly with regard to the testing and reporting of the ingredients used in vaping liquids.

“Governments also need to ensure relevant authorities enforce manufacturer compliance with these regulations. Only through effective regulation and enforcement will consumers retain confidence in vaping products which could potentially reduce the public health burden related to smoking.

“Given the significant investment and scientific resources we deploy to the testing and stewardship of our own products, we stand ready to work with governments and the science community to help in any way we can to support the development of robust product standards.”

This drive further enforces the need, globally, for elimination of the illicit tobacco trade – something which remains rife in South Africa, with a large health and financial cost to everyone in the country.

R30M AGAINST ILLICIT TRADE Earlier this year, BAT SA received a R30 million tax rebate from SARS after paying R9.1 billion in 2018. Head of External Affairs, Johnny Moloto said that the company would use the entire rebate to continue its fight against illegal tobacco trading.

“South Africans continue to be ripped off by connected billionaires who are taking at least R20 million every single day out of their pockets.

These criminals are the enemies of the State and of the people,” he said. “#TakeBacktheTax has shone a

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www.enterprise-africa.net / 153

INDUSTRY FOCUS: AGRICULTURE

© BAT SA

light on the illegal activities of these criminal billionaires who are robbing South Africans and we are proud to continue supporting it.

“We are highly encouraged by the actions that have been taken by the new SARS leadership in cracking down on this illegal trade after years of deliberate neglect.

“BAT SA was not a beneficiary of this corruption by rogue SARS agents. It, like all other taxpayers in South Africa, was a target. We are

the only local tobacco manufacturer in the country that declares all our production and pays all our taxes.

“We are very confident than any analysis of our operations and the volumes of documentary evidence we have supplied to SARS by any auditor with the appropriate experience in Customs & Excise will conclude that we are utterly compliant, fully paid up and due the rebate that will be used to continue to fight the illegal trade,” added Moloto.

SMOKING HOT PEOPLE For BAT’s people, the brand continues to lead the way in an industry which requires constant attention, and all work that they put in is well-rewarded. The company contributed 0.52% of SA GDP in 2015 and labelled itself a ‘bedrock of South African agriculture’. Beyond its direct employee base, the company is responsible for a much larger number of jobs, and its focus on successful HR practice was rewarded after the Top Employers Institute recognised the

// GIVEN THE SIGNIFICANT INVESTMENT AND SCIENTIFIC RESOURCES WE DEPLOY TO THE TESTING AND STEWARDSHIP OF OUR OWN PRODUCTS, WE STAND READY TO WORK WITH GOVERNMENTS AND THE SCIENCE COMMUNITY TO HELP IN ANY WAY WE CAN TO SUPPORT THE DEVELOPMENT OF ROBUST PRODUCT STANDARDS // 154 / www.enterprise-africa.net

BRITISH AMERICAN TOBACCO SA

© BAT SA

business as a Top Employer 2019 for South Africa, Africa and globally.

Giovanni Giordano, BAT’s Group HR Director, said: “Being named as a Global Top Employer is a great honour.

At BAT, we believe that people and their talent are essential to our success – and this accreditation acknowledges our focus on developing our people, and on providing an engaging, innovative and diverse place to work.

“As we work to transform our business and the industry, our culture of inclusion, performance and recognition is now more important than ever. It has never been so exciting to work at BAT, and we are delighted that our ongoing commitment to our 55,000 people, and the work that we do, has been recognised in this way.”

David Plink, CEO of the Top Employers Institute, said: “British American

Tobacco belongs to a very exclusive global community of Top Employers and it’s continuously showing great achievements. The recognition of BAT’s solid performance has expanded from Europe - where they are certified for the eighth consecutive year - to Africa, Asia Pacific, and Middle East. BAT is also the first tobacco company to be recognised as a Top Employer in Latin America.

“These outstanding results have earned British American Tobacco the exclusive Top Employer Global recognition. British American Tobacco has always been a company focused on attracting and retaining the best talent, not only offering excellent conditions, and a diverse culture and working environment, but also ensuring exciting career opportunities in their worldwide locations.”

Top Employers Institute research

showed that BAT SA provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation and has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees.

For BAT SA, and the wider BAT group, having the best people is the base for a far reaching and impactful business. It is a job creator, a product innovator, an agricultural protector, an economic driver, and a stopper of illicit tobacco trading.

In a quickly changing market, BAT SA is displaying all the tendencies needed to thrive in these uncertain times.

WWW.BAT.COM

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TWO-A-DAY GROUP

Growing Giant Remains

Twice As Caring PRODUCTION: Benjamin Southwold

The Two-a-Day Group is among the leading fruit growing, packing and marketing companies on the African continent. The Group’s total area under fruit exceeds 3300 hectares while its total production, including processing, equates to more than 200,000 tonnes per year.

//

Nestled at the foot of Africa lies the Elgin Valley, a region of South Africa renowned for its spectacular scenery and home to the Two-a-Day Group. Natural features like rich fertile soil, bracing winters and golden summers tempered by cool sea breezes make this one of the Cape’s most beautiful fruit growing areas.

An hour’s drive from Cape Town and one of the Western Cape’s better

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kept secrets, this stunning fertile valley is filled with vineyards, orchards and forests, offering the ideal conditions to grow and the more than seven million cartons of Two-a-Day fruit consumed every year across five continents.

Previously Elgin Fruit Packers Cooperative Limited, Two-a-Day began life as a primary agricultural co-operative in the Elgin district in South Africa’s Western Cape. Elgin Fruit Packers hit

upon a rich seam of produce during the 1950s when crop sizes swelled by 150%, which resulted in the packing of more than 550,000 cartons of fruit. This upward curve continued throughout the ensuing decades, reaching a peak in 1976 when more than 1.5 million cartons were packed and of which two thirds were exported, suddenly giving Elgin Fruit Packers an 8% share in the South African apple export crop.

INDUSTRY FOCUS: AGRICULTURE

The Group restructured itself in December 1993 and converted to an unlisted private company, the Two-a-Day Group that so many know and love today.

“TAD is one of the leading fruit growing, packing and marketing companies on the African continent comprising more than 50 farms owned by the principle shareholders,” the company states.

“Total area under fruit exceeds 3300 hectares, and total production, including processing, equates to over 200,000 tonnes per annum.

“The Group is currently exporting 5,200,000 cartons of apples and pears

// THE GROUP IS WIDELY RECOGNISED AS HAVING DISCIPLINED MEMBERSHIP, COMMITTED TO PRODUCING HIGH QUALITY FRUIT EMPLOYING SOUND ENVIRONMENTAL, SOCIAL AND ETHICAL PRACTICES //

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per year, and we also supply the local market with 2,900,000 cartons of apples and pears per annum. The Group plays a leading role in the growing, marketing and technological fields and is widely recognised as having disciplined membership, committed to producing high quality fruit employing sound environmental, social and ethical practices.”

// TAD IS ONE OF THE LEADING FRUIT GROWING, PACKING AND MARKETING COMPANIES ON THE AFRICAN CONTINENT //

TECHNOLOGICAL LEADERS The employment of innovation and technology by businesses in such a traditional endeavour as farming and fruit growing is rapidly on the rise. For Two-a-Day Group a lot has had to happen quickly since its early days, developing at the rate required to support the everincreasing scope of its operations.

Even in the past two decades, that way that the company uses technology has changed dramatically, Managing Director, Attie Van Zyl explained: “We’ve more than doubled our volumes in my more than 20 years with the company and I think the main thing that has changed is technology.

“Technology is now a huge driver of the business. The definition of technology is widening; for example, we use mobile devices throughout the business even at orchard level. In the factories, the technology is so different from what we had just ten years ago.

Importantly, technology in the orchards, horticultural technology, has advanced greatly. For example, water usage has become much more efficient.

“We embrace the science of fruit growing from a technology point of view and that is what is going to help us drive the business forward in the next 20 years.” Two recent investments for the company have been technological and have surrounded the pack house equipment and the cold storage facilities.

“With the pack house technology, the machinery that we had was old and we’ve put in machinery that can do weight sorting, diameter sorting, colour sorting and defect sorting,” Van Zyl detailed. “In the past, the old machines only did weight sorting so this makes a huge difference. This will help us to drive productivity and will also allow for increased accuracy in packing thanks to much more precise weighing technology.”

TWO-A-DAY GROUP

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GLOBAL OPPORTUNITIES “South Africa’s urgent need to create jobs requires that the country take advantage of opportunities in the global economy that it can convert into quick wins,” says The Conversation, and the fruit industry presents an ideal such opportunity.

The country’s fresh fruit industry is currently the largest exporter of agricultural products, contributing 52% of the value of South Africa’s agriculture export basket while it represents 28% of total employment in agriculture.

If South Africa can aggressively find new export markets and grow its exports, it can achieve a conservative 5% export growth per annum over the period 2019 to 2023, which would imply a production increase by 34% from approximately 6.5 million tonnes

in 2017 to 8.7 million tonnes by 2023.

At such increased level of production, assuming normal weather conditions, the fruit industry could create an additional 100,000 jobs by 2023.

There are obstacles to be negotiated, The Conversation is at piano to point out. “These include improving access to export markets, addressing congestion at the ports and improving the rail and logistics infrastructure.

“The high levels of congestion and delays at South Africa’s main ports remains a constraint to growing fresh fruit exports. Addressing such bottlenecks require investments in integrated digital systems to assist with planning and avoid product overload at the main ports.

“Fruit farmers would also need to make changes,” it concludes, and it sounds like nobody is better

placed to help achieve these aims that Two-a-Day. “Workers would need re-skilling to meet the growing demand for digital skills, using advanced machinery and equipment as well as research and technology development.” The success of the citrus industry demonstrates what is possible with concerted and coordinated action for fresh fruit, and decisive organisation of the many sub-sectors in agriculture should see ambitious objectives met and surpassed.

WWW.TAD.CO.ZA

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EQSTRA FLEET MANAGEMENT

Fleet Partner

of Choice PRODUCTION: Karl Pietersen

As Eqstra Fleet Management begins a new period in its long history, the company’s position as a market leader is not in question. After significant technology investments were completed, and the customer base across southern Africa brought on to a new Enterprise Resource Plan (ERP) system, this is a business in a stronger position than ever, and one that is looking for continued growth. www.enterprise-africa.net / 161

INDUSTRY FOCUS: AUTOMOTIVE

//

Are you part of a company that is on the road? Does your business operate vehicles or have a need to move people and goods around the country, or even cross border? Even if you don’t own your vehicles, do you spend money on rentals? The organisation of vehicles and transportation can be a headache. Depending on the size of your business and the nature of your work, you could insource this function and create a team to look after your fleet, or you could outsource and trust an experienced partner to handle all things driving.

Once you have the fleet sorted, the next challenge is all the ancillaries. Insurance, taxes, tolls, fines, maintenance, navigation, tracking, resale, acquisition, roadside assistance; just one of these issues could be enough to take up all of the attention of a full-time employees, depending on the size of your operation.

So, often, the easiest and most effective option is subcontracting.

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It can be cheaper, it allows you to focus on what you do best, you remain in operational control, but it gives you flexibility.

In South Africa, there are several great examples of fleet management businesses, both local and international, and the industry is an important sector, helping clients to navigate the country’s 747,000km road network – the tenth largest in the world.

One of the industry leaders, not just in South Africa but across Southern Africa, is Eqstra Fleet Management (EFM). Founded in 1988, the company has grown from a small regional player into a powerful multinational organisation that has significant bargaining power with industry suppliers.

ALL ENCOMPASSING Starting out as a leasing business, there was a clear opportunity in the market for EFM to expand its service portfolio, and after a decade

in business – now understanding the business of its clients in more detail than ever before – EFM made the move, becoming a full fleet management business.

Of course, the early days were hard. “From the moment we started, the new strategy brought us into a lot of new areas that we had not traditionally been in,” says Director Murray Price.

Warranties, fuel cards, documentation – EFM had taken on a whole host of new responsibilities. Today, the company is a multifaceted business with exposure to more than 1200 clients and complex vehicle networks.

“Every month we process over 5000 traffic fines, manage over 1000 accident claims from end to end, negotiate and approve over 12,000 maintenance events, provide roadside assistance to over 60,000 drivers, and provide live tracking with unique active management to over 30,000 vehicles,” states EFM.

EQSTRA FLEET MANAGEMENT

In order to handle the shift from simple leasing operation to becoming a business with so many touch points, the first thing that had to be addressed was the technology.

A whole new interface was needed and EFM made a large investment into a new IT system that would allow for smooth operation and implementation of services.

“As part of the project, Eqstra Fleet Management now implements a web portal that allows customers and suppliers to transact directly on the ERP system. This enables us to keep track of all individual transactions and reduce the duplication of effort seen in the traditional fleet management value chain.

“In addition, it delivers a single point of access to the full array of our fleet solutions, providing more

control to our customers as well as better reporting capabilities across all aspects of their fleet,” says Price.

“You can recognise the pioneer in any business because they are the ones with arrows in their back. But I believe that that this business would not have had a future unless we had changed direction,” he adds.

The new Microsoft solution developed in partnership with PwC was the source of a lot of pain in the early days, as the company made the switch over. But after staff, customers and suppliers became familiar with the system, it has become invaluable, proving its worth now that the company has shifted from 95% of revenue coming from leasing to around just 50%.

All in all, the company spent eight years and R250 million implementing

// YOU CAN RECOGNISE THE PIONEER IN ANY BUSINESS BECAUSE THEY ARE THE ONES WITH ARROWS IN THEIR BACK // its new system.

“To never forget that mission of finding a system flexible enough to accommodate the needs of every customer, we called this system Quest,” the company says.

“Global fleet directors have said they haven’t ever seen anything like Quest. Even our competitors have admitted that it represents the future in

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INDUSTRY FOCUS: AUTOMOTIVE

// IT DELIVERS A SINGLE POINT OF ACCESS TO THE FULL ARRAY OF OUR FLEET SOLUTIONS, PROVIDING MORE CONTROL TO OUR CUSTOMERS AS WELL AS BETTER REPORTING CAPABILITIES ACROSS ALL ASPECTS OF THEIR FLEET // fleet management, and some are even investigating ways to introduce similar functionalities to their own systems.

“Quest merges technology with software to give customers insights never seen before, and full control and visibility through powerful reporting.”

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ALWAYS GROWING With 16 locations around southern Africa and a market share in among the top five in the industry, EFM has undoubtedly built a strong and resilient business. Earlier this year, in Namibia, EFM was rebranded as Omatemba Fleet Services. Omatemba is the local word for ‘a fleet of wagons’ in the Oshiwambo and Otjiherero languages and EFM, which is in Namibia as part of a Joint Venture with Epia Investment Holdings, has developed strong and lasting relationships with large clients including the likes of Nampost and Namdeb Diamond Corporation.

“Our team in Namibia is fullygeared to provide complete fleet solutions to our Namibian clients, including companies in the private sector as well as public entities. Our service offerings are provided inhouse and controlled through service level agreements; we outsource/subcontract vehicle washing in Namibia, fuel cards roadside assistance and short-term vehicle insurance. We will rely on Eqstra Fleet Management

in South Africa only for financial administration and human resources control and administration,” Price said of the Namibian operation.

Just like South Africa, the Namibian operation offers a simplified approach to fleet management for customers and offers up the ability for those customers to deal with one single point of contact, streamlining and bringing efficiency improvements and cost savings.

FUTURE PROOFING The future looks bright for EFM and, with its expertise, experience and knowledge of the sector, it is an attractive business for both customers and investors.

This was evidenced in July 2019 when Bidvest Group announced that it would acquire EFM from enX Group for R3.1 billion. In October 2018, enX suggested that it was interested in disposing of EFM despite only acquiring the company three years ago. enX paid R7.8 billion for the business, from Eqstra Holdings, in November 2016. In group results

EQSTRA FLEET MANAGEMENT

released by JSE-listed enX in February, EFM’s performance was described as satisfactory and there was optimism behind the company’s ambitious plans for UK growth, where it was seeking out acquisition opportunities with industrial equipment vehicle businesses.

But in October, enX said that EFM would benefit from being part of a

new structure which would be able to better optimise its value proposition.

Bidvest was attracted by the 12,300 vehicles that EFM had under lease at the end of August 2018. “The acquisition of Eqstra is in line with Bidvest’s stated strategic intent to focus Bidvest Bank on its fleet management niche,” Bidvest said in July.

The desire for Bidvest is to

gain further traction in the fleet management market and bring a “cradle to grave” solution combined with Bidvest Bank and the group’s automotive division, have resulted in the acquisition.

The hope for the future is that EFM can add to its 120,000 fleet assets under management, capture further market share, and gain further access to the sector’s value chain.

The company is confident in its ability and knows it has the experience to deal with customers big and small, offering them savings, efficiency and excellence as they navigate the complex world of fleet management.

“Because we know that all fleets large or small are unique, the solutions we offer have all been customised to suit our customers very specific fleet needs,” EFM concludes.

WWW.EFM.CO.ZA

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HUB PARKING TECHNOLOGY

Total Parking

Solution PRODUCTION: Benjamin Southwold

HUB Parking Technology develops, manufactures, installs and provides after-sales services for its multitude parking access and revenue control systems. The company has constantly innovated throughout its lifetime to develop state-of-the-art systems to provide users with efficient parking solutions, which are profitable and easy to manage for operators and help to streamline a crucial revenue opportunity.

//

Smart parking is being adopted by many countries globally, and is becoming one of the prevalent smart solutions across various public and private places including airports, universities, shopping centres, and city garages. “The parking management solutions market is growing as traffic congestion intensifies,” adds Business Wire.

“New technologies are rapidly

changing the parking management landscape, with new participants in the sector facilitating smart parking aided by real-time parking information and technology.”

Properly implementing technology results not only in better control management and reporting, but also in brings about a significant reduction in monthly operating cost for parking owners, while providing a far better quality service.

STRONG ELEMENTS HUB Parking Technology combines the strengths, best practices and valuable experiences of three of South Africa’s best-known companies and brands: FAAC, ZEAG and Datapark. The combination of these three arms into a centralised hub allows it to meet every market expectation, through a plethora of solutions.

These products are developed around the world, and are robust,

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INDUSTRY FOCUS: AUTOMOTIVE

// THE PARKING MANAGEMENT SOLUTIONS MARKET IS GROWING AS TRAFFIC CONGESTION INTENSIFIES // reliable and designed for long-term application.

The three previously separate entities each enjoyed a number of major firsts and innovations before their amalgamation in 2013 by the FAAC Group, which designs, builds and markets solutions for every pedestrian and vehicle need across access automation and control, and car parks.

Datapark was famous for creating the first web-based validation, an easy to access, intuitive solution designed to offer a web-based alternative for the application of discounts to short-term parking users. It followed this by introducing the first ticketless system in Australia, joined soon after by the Datapark ticketless car park.

The Zeag Group was acquired

by FAAC SpA in 2011, and was

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famously contracted for a major construction project at O.R Tambo International Airport in the run-up to the 2010 FIFA World Cup. This entailed the installation of a massive new multi-storey car park equipped to hold some 5,200 parked vehicles.

Integrated with this construction was a sophisticated and highly intelligent car parking system, capable of delivering elevated and effective performance with high-level management and control resolutions.

Founded in 1965, Fabbrica Automatismi Apertura Cancelli (FAAC) entered the parking business in 1993 and established a specialist division the following year. It made major installations in New Delhi, India and Chile, as well as the implementation of an array of 26 pay stations at the vast Euroma2 shopping centre in Rome. FAAC Parking Business Unit became HUB Parking Technology in 2013, launching the JMS and new HUB product ranges in 2014, since when it has never looked back.

VAST RANGE OF SOLUTIONS Whether in airports or shopping centres, hospitals or hotels, and even through residential areas and business centres, HUB Parking Technology has the solutions to make

parking the car a relative breeze. The ability to book a space in advance throughout online reservations speeds up the entry processing time at airports, while parking can prove a major factor in a consumer’s choice of where to shop.

Intuitive and efficient solutions, reliability and user friendliness all help to minimise the risk of losing repeat business due to queues, difficulties in finding spaces or trouble making payments.

Parking at hospitals is a vital source of extra revenue, and one which has come to be accepted by all users for the ensuing convenience and peace of mind. Whatever the size of the healthcare facility, HUB Parking Technology vows to help ensure that parking makes a useful and important contribution to budgets.

Throughout the world, HUB Parking Technology is also providing municipalities with parking management solutions that meet the different requirements of every city. Its largest municipality installation supports over 300 peripherals, with the capability to handle even more, spread across the city and representing one of its largest network installations in the world to date.

HUB PARKING TECHNOLOGY

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HUB Parking Technology now looks to the future, and at a glance, this means the Jupiter product range. It works in tandem with the Janus Management System (JMS) software, which itself allows users to easily manage and control all HUB equipment and HUB Parking Systems with one simple and versatile software solution.

JMS is the first tile-based management system in the parking industry, a brand new, reliable management system that brings together the application logic and the communication protocol of previous versions, merging valuable expertise in a new state-of-the-art system.

Constantly changing demands on the part of managers and users alike mean that new and more flexible features ,which embrace innovation,

are required. HUB Jupiter is designed to adapt to complex systems which include license plate recognition, contract parking, online pre-paid parking or a mix of any of these, and to support ticketless parking.

HUB Parking Technology’s embracing of innovation was in full evidence at this year’s iteration of the South African Council of Shopping Centres (SACSC) Annual Congress, the premier industry event for the retail sector in the country. Now in its 23rd year, the event has become an occasion serving to not only educate, but also provides a platform for collaboration to further enhance an industry central to contributing to the economy of any country the world over.

HUB’s South African seized the opportunity to team exhibit and

meet with fellow delegates and professionals, and to discuss those customised parking solutions that are going to represent the next phase of trends in the retail zone.

Among these, important will be seamless access to the car parks of small to large shopping malls car parks, integration with third party apps, introducing loyalty programs through validations and discounts and dynamic pricing management.

Innovation is a way of life at HUB Parking Technology, and whatever the future may hold, it is certain that HUB will be right at its heart.

WWW.HUBPARKING.COM

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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.

MICROSOFT IGNITE JAN 30 - 31 | JOHANNESBURG Microsoft Ignite The Tour brings the very best of Microsoft Ignite to a city near you. The tour provides technical training led by Microsoft experts and your community. You’ll learn new ways to build solutions, migrate and manage infrastructure, and connect with local industry leaders and peers.

Find new ways to modernise workloads and migrate to the cloud, dive deep into the latest cloud technologies, explore innovative client development techniques, discover new ways to manage your infrastructure, and more.

Meet with experts who build and support the Microsoft technologies you’re using and evaluating. Join guided discussions with individuals who are facing similar challenges.

Connect with technical communities on new trends and shared interests.

Discover where your business can go next, learn about the latest developments in productivity, security, AI, machine learning and development practises through breakout sessions, deep-dive workshops, expert connexions, and more.

GHANA TRADE SHOW JAN 30 | ACCRA Ghana Trade Show is the main international event for all trades.

Setting new highs for participation from over 20 countries and visitors from over 12 African countries, the

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event is all set for its exhibitors to meet serious buyers within the three days. The event continues to lead the way in showcasing the new products and technology, not only to Ghana but also to its surrounding countries.

The exhibition will be held at Accra International Conference Centre, the perfect venue for hosting international trade exhibitions in Accra. It is situated in the heart of the capital city. Its exhibitions attract trade visitors from all the sectors of Ghana and the neighbouring countries such as Burkina Faso, Mali, Niger, Ivory Coast, Togo, Benin and Nigeria etc. It offers high standard facilities, equipment and services.

SOUTHERN AFRICAN COAL CONFERENCE JAN 29 - 31 | CAPE TOWN South Africa is proving to be an interesting and diverse market for coal. Currently the industry is facing a future of continued high coal prices and limited high-quality coal, opening up unprecedented opportunities for major producers and junior miners to expand, develop, and profit.

For 15 consecutive years the South African Coal Conference has produced the most relied upon educational and networking event for the Southern African coal market.

Here are some of the highlights from our 2019 conference: • Hearing directly from Ministers, CEOs and other high-level

KHARTOUM INTERNATIONAL FAIR KHARTOUM INTERNATIONAL FAIRGROUND JAN 21 - 28 GHANA TRADE SHOW ACCRA INTERNATIONAL CONFERENCE CENTRE JAN 30 – FEB 01 INTERMODAL AFRICA HYATT REGENCY – THE KILIMANJARO, DAR ES SALAAM JAN 28 - 30 PLASTEX – CAIRO CAIRO INTERNATIONAL CONVENTION& EXHIBITION CENTRE JAN 09 - 12 DEEP OFFSHORE WEST AFRICA CONGRESS ACCRA, GHANA JAN 16 – 17 SOUTHERN AFRICAN COAL CONFERENCE THE WESTIN, CAPE TOWN JAN 29 – 31 MICROSOFT IGNITE SANDTON CONVENTION CENTRE, JO’BURG JAN 30 - 31

executives that you won’t see on any other conference program.

• Standing-room-only sessions to hear from industry leaders about the latest developments in the political, investment and legal framework for coal mining in Southern African countries.

• Engaging easily with other delegates and speakers through the many networking events, session Q&A opportunities, audience polling and the event app.

manufacturing excellence

You can count on us to deliver in terms of price, timing, quality and reliability

Apex Cordset Technologies’ vision is to become a recognized international supplier within the industry through

excellent service with our foundation in manufacturing expertise. Our supply cord is expertly manufactured to deliver superior power connections to our clients and we are proud to call ourselves the South-African leader in plugs, cordsets and cordset extensions.

Quality Passion for Quality We appreciate the safety regulations as determined by the Standards of the products to which we manufacture. Through this we ensure to manufacture our products to be compliant to the relevant standard and market in which it is intended for.

Quality Standards We have high standards and our goal is to sell the highest

We want to exceed their expectations every time they place an order with us. We realise that by doing so we turn our customers into advocates for our business.

We want to serve our custo

Product Conformance; Safety; Reliability; Appearance and Product Delivery.

Education We can generate appreciation and loyalty from all our stakeholders by educating them about safety and performance related issues

Satisfying and Appreciating our Customers

the environment.

Professionalism An approach to work that is informed, knowledge-based and is

Meaningful Value

Extraordinary Customer Service We go to extraordinary lengths to satisfy and delight our customers.

high quality products, extraordinary service and a competitive price.

We are constantly challenged to improve the value proposition to our customers.

Member of

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