Enterprise Africa March 2020

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

March 2020

www.enterprise-africa.net

Tailor Made Tech Solutions Making

Investments Accessible Exclusive interview with Silica CEO Garth Smith

ALSO IN THIS ISSUE:

Securitas / Iconic Collective / SATIB Insurance Brokers / Phoenix Aviation

8 AGENCIES, ONE VOICE. Operating as a collective of creative businesses, our expertise encompasses shopper marketing; public relations and reputation management; UX/UI design; software and enterprise development; creative conceptual and design; experiential and event management; print and packaging design and production; digital and paid media strategy; and 2D & 3D animation with full post-production services.

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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 PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Lewis Hammond  lewis@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za PROJECT MANAGER Chris Fairhurst  chrisf@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.

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Obviously, the major focus for most in March has been responding to the budget speech delivered

by Finance Minister Tito Mboweni on March 4.

The theme that most seem to be taking from what Mboweni stated is that now is the time when more needs to be done with less. There is not enough money in government coffers to sustain service levels as they sit currently – something has to give.

Unfortunately, transport, housing, provision of basic infrastructure, education and health will also see reduced spending in the medium term as each sector looks to rein in spending to help balance the books.

The difficult speech for Mboweni was not as bad as many had previously thought, managing to avoid major VAT hikes. But it looks like the country has a long way to go before meaningful spending and growth will return to the market. This confirms what many have been fearing for so long. Let’s hope that the announcement on March 27 from Moody’s will not follow the same route and the country can avoid junk status.

For business, the ‘keep calm and carry on’ mentality is characterised best by SATIB Insurance Brokers, the leading hospitality and tourism risk business, which is still expanding across the continent while celebrating 30 years in business.

CEO Dewald Cillie tells us: “As South Africans, we are always positive and optimistic about the outlook and where we can go. If we are left with no option but to fight, then we will fight.”

Other companies with similar feelings featuring this month include Securitas RSA, the global security company looking to dominate the local market by 2023; the Iconic Collective, a leading integrated communications agency looking for international growth to drive its establishment; and Silica, the leading trading tech company, also looking to grow outside of South Africa.

Get in touch and tell us how you view the budget and how your company is planning to mitigate any unwanted impact. We’re online @EntepriseAfri1 for Twitter and LinkedIn.

Joe Forshaw EDITOR

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

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

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

8/ SILICA Tailor Made Tech Solutions Making Investments Accessible From in-house Investec software developer to fund management thirdparty administrator of choice to regional market share leader and internationally recognised trading tech innovator, Silica has come a long way in the past 20 years. CEO Garth Smith tells Enterprise Africa more about how this inventive organisation will grow its clients further in the future.

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CONTENTS

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35/

43/

INDUSTRY FOCUS: TECHNOLOGY

INDUSTRY FOCUS: TRANSPORT

8/SILICA Tailor Made Tech Solutions Making Investments Accessible

49/PHOENIX AVIATION 25 Years of Reaching New Heights

INDUSTRY FOCUS: FINANCE

55/TSHWANE RAPID TRANSIT Economic Handbrake Slows TRT Rollout

16/SATIB INSURANCE BROKERS SATIB Celebrates 30 Years of Protecting African Tourism

60/VOLVO TRUCKS SA Innovation, Efficiency, Dependability Results in Market Dominance

22/FSCA Regulators, Educators and Innovators

67/TALLIE MARINE Far More Than Just Staying Afloat

INDUSTRY FOCUS: SECURITY

INDUSTRY FOCUS: ENGINEERING

29/SECURITAS RSA Anti- Crime’s Second Front

73/LITHON PROJECT CONSULTANTS Positive, Significant, Impactful: The Lithon Way

INDUSTRY FOCUS: MARKETING

INDUSTRY FOCUS: ENERGY

35/ICONIC COLLECTIVE Jawbone Becomes Iconic

80/JUWI RENEWABLE ENERGIES SOUTH AFRICA Hybrid Systems the Future as Energy Opens Up

INDUSTRY FOCUS: ENTERTAINMENT 43/PHUMELELA GAMING & LEISURE Phumelela Continues to Set the Pace in SA Gambling

INDUSTRY FOCUS: MINING 86/FOSKOR Employee Wellbeing Top Priority for Foskor

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PETROL PRICE COMES DOWN IN MARCH The petrol price again came down by between 19 and 54 cents a litre for March.

The Department of Mineral Resources and Energy announced a 19 cent decrease in the price of 93 (ULP and LRP) and 95 (ULP and LRP) as of 4th March.

Meanwhile, both grades of diesel (0.05% Sulphur) and diesel (0.005% Sulphur) came down by 54 cents a litre.

The price adjustment saw a litre 95 come down to R15.84 cents in Gauteng, down from the R16.03 in February.

The price of illuminating paraffin (wholesale) decreased by 68 cents per litre, while that of illuminating paraffin (SMNRP) went down by 91 cents a litre.

“The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period,” said the department.

HUB TO SUPPORT LOCAL FILMMAKERS The National Film and Video Foundation (NFVF) is set to launch a facility that will provide local filmmakers, editors and digital entrepreneurs with space that has high-speed internet and resources.

The Eastern Cape Film Hub will be launched in Buffalo City Municipality.

This launch is a collaboration between NFVF, the Eastern Cape Development Corporation (ECDC), Eastern Cape Provincial Arts and Culture Council (ECPACC) and Cortex Hub. The facility will provide access to training, mentoring and rental facilities to kick-start the careers of filmmakers and editors.

“Following the completion of the programme, entrepreneurs will be tasked with creating a short film. The Film Hub will also ensure that young filmmakers entering the industry are exposed to collaborative efforts alongside successful local film talent. The Hub’s success will influence similar collaborations in underserviced parts of South Africa,” the NFVF said in a statement.

Aspiring filmmakers will have an opportunity to participate in a 12-month incubation programme and enhance their film business skills.

SA READIES TO ESTABLISH STATE BANK Government is ready to establish a state bank, Finance Minister Tito Mboweni said on March 4.

“In July 2019, I tasked the Deputy Minister of Finance with the responsibility to undertake the state bank project…

I am pleased to inform the House that preferred options for the establishment of a bank are now ready,” he said as he tabled the 2020 Budget Speech.

The Minister’s comments come after Parliament last year passed legislation to allow state-owned enterprises to apply for banking licenses.

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The architecture of the proposed bank will be that of a retail bank operating on commercial principles.

The bank will be subjected to the Banks Act, and will have an appropriate capital structure and performance parameters on investments and loan impairments.

“It will be regulated by the Prudential Authority on its own merits.

We will also consolidate the currently fragmented system of national and provincial Development Finance Institutions,” he said.

NEWS SNAPSHOT ECONOMIC GROWTH REVISED DOWNWARD TO 0.9% South Africa’s economy is expected to grow by 0.9% in 2020, National Treasury has stated.

This is a downward revision from the 1.7% projection made in the February 2019 budget.

In its budget review just over a year ago, Treasury had projected real economic growth of 1.5% in 2019 and 1.7% in 2020.

“We now expect real growth of only 0.3 per cent in 2019 and 0.9 per cent in 2020. In 2019, consolidated government spending reached a historic high of 36% of GDP,” said Treasury in the current budget review.

The increase it said, reflects downward revisions to the size of the economy, spending plans based on an assumption of economic growth that has not materialised, and increased demands from financially distressed

state-owned companies.

Treasury said while that makes a significant contribution to development, this level of spending is unsustainable, and results in continued high deficits and debt accumulation.

The impact of low growth on revenue collection has been a considerable one.

“Government expects to collect R63.3 billion less revenue than projected at the time of the 2019 Budget. The state is borrowing at an increased rate to fund operations, with the deficit projected at 6.3 % of GDP this year.”

Debt-service costs now absorb 15 cents of every rand government collects.

The National Treasury said that by 2022/23, interest payments will exceed health spending.

To counter this, and as a major

step towards fiscal sustainability, government has reduced the main budget expenditure baseline by R156.1 billion over the next three years in comparison with the 2019 Budget projections.

“This is approximately 1% of GDP per year,” noted the document.

NEW UNIVERSITY TO ADVANCE TECH INNOVATION IN SA Higher Education, Science and Technology Minister, Blade Nzimande, has welcomed President Cyril Ramaphosa’s announcement on the establishment of a new University of Science and Innovation.

During his State of the Nation Address (SONA) on 13 February, President Ramaphosa announced that a new University of Science and Innovation will be established in the City of Ekurhuleni, a major economic hub and seat of a growing aerotropolis, which provides vital services to the economy of the entire continent.

Nzimande said the university will be closely linked to driving high impact and cutting-edge technological innovation with current and future industries, sectors and firms to drive the frontiers of a future economy.

In a statement, Nzimande said Ekurhuleni is the only metro without a university, and government wants to address this through the new institution, which will have to develop a dynamic relationship with the “industrial and small and medium enterprises (SMEs) heartland of the country.”

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SILICA

Tailor Made Tech Solutions Making

Investments Accessible PRODUCTION: Karl Pietersen

From in-house Investec Asset Management software developer to fund management third-party administrator of choice to regional market share leader and internationally recognised trading tech innovator, Silica has come a long way in the past 20 years. CEO Garth Smith tells Enterprise Africa more about how this inventive organisation will grow its clients further in the future.

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For Sandton-based software and third-party administration company, Silica, 2020 looks set to be an exciting and prosperous year. The company, owned by Investec Asset Management, is pushing an exceptional new product while planning further international expansion. “We make investments accessible” is the company’s purpose.

From establishment more than two decades ago as a tech/software division of Investec, serving the changing needs of investors and asset managers, Silica has grown to become a vital aspect in the transactional and administrative process for South Africa’s unit trusts and mutual funds.

By using technology, data, and the power of digital, Silica is helping to drive efficiencies and costs so that investments can be managed more efficiently. CEO Garth Smith tells Enterprise Africa more about the company’s new Graphite solution, and how it will further drive productivity for clients.

“We had clients of clients who came to us saying they are dealing with big asset managers and they are

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sending individual instructions to our offices to be processed,” he begins.

“They asked if there was a better way to send instructions to us. We started looking at how people are executing on their investments and we realised that things had not changed for many years.

The world of technology has changed and we thought we could build an orchestration interface, or a switch, that people can connect to through their own channels and we can then manage the execution down to the asset managers. That is where the idea for Graphite came from.”

GRAPHITE Graphite is a system designed to integrate into the operations of clients so that investment managers can seamlessly access funds quickly and affordably.

The technology combines with existing software so that all information and instructions are captured at source through a single cash and application process. The performance of funds can be tracked in real time and this allows clients to adapt their service quickly. The system is also cloud-based resulting in cost

savings on the administration side.

In 2017, Silica approached Investec Asset Management with the idea for the new product. After development and piloting, Graphite was officially launched in May 2019.

“The way we went about it was to be very different from a traditional business,” details Smith. “We wanted different thinking and we took on a strategy of building a team completely outside of our existing team. We based the new team in Cape Town and we partnered with an expert company, NML, that could build the technology and integrate it back into Silica. NML is still our partner in the journey and we are still in the build stage but we do have accounts live on Graphite.”

For clients, Graphite makes the investment process smooth. For Silica, the solution will allow for growth in customer base and will help with the company’s consistently growing digital credentials.

“If something comes in via Graphite it is included in the price of Graphite and we don’t have to charge that back to asset manager, so it is a very costeffective channel.

SILICA CEO GARTH SMITH

INDUSTRY FOCUS: TECHNOLOGY

“Traditionally, our clients are asset managers, but we are now talking directly to wealth managers,” explains Smith. “In the past, a wealth manger would have their own software to handle analysis and the portfolio of investors. They then need to decide on the switch to a model, add more, or withdraw. Then, they would have to go to whichever service provider they were using and recapture the instruction, write it on paper and send it in, or go onto the website of the provider and capture the instruction electronically.

What Graphite does is goes directly to the wealth managers front office system through an interface and when the portfolio order changes, they can hit an execute button in their application, send to Silica in real time, and send a response back detailing the transaction. Previously, this would have been a two- or three-day process. We have taken out a lot of the

bulking and at any time we can pull statement information.

“In the current situation, because the files are separate, there has to be a data dump or files coming in on a daily basis.

Now, data is available as it stands at the moment through our systems. We believe it will help build our client base but we also think it will take friction out of the investment process in South Africa for advisors and wealth managers.”

NEVER STANDING STILL Silica is a team made up of industry professionals with a deep understanding of the market in which the company’s technology and innovation is put to work. Smith himself is a veteran of Stanlib, Standard Bank and Liberty Life. Embedding Silica further into the operations of its clients is important. This is why the company

is never standing still and is always on the lookout for opportunities where improved tech and digital revolution can improve ageing systems.

Back in 2018, Silica partnered with IRESS to automate trading of unitised investments, digitising the process to drive costs down for all players in the value chain – a partnership that thrives today.

“Stockbrokers are under pressure and volumes are down so a lot are trying to get into the retail space so we are partnering with IRESS, using a system that uses fixed messaging and allows clients to trade electronically on the JSE. We interface with that and we have a big client that has a portfolio management system that can trade equities and unit trusts. We are widening the channels that are available to unit trusts. Our asset management clients like it as it gives them

SIGNATURE BUSINESS SOLUTIONS (PTY) LTD PROUD STRATEGIC PARTNERS OF SILICA Signature Business Solutions (Pty) Ltd are proud to be the strategic partners of Silica, and through this close partnership have managed to automate many of their historic processes using the powerful iCompare platform. Through iCompare’s innovative and ground breaking technology, Signature Business Solutions have managed to not only automate but also significantly improve processes including the allocation of clients’ money.

Our solution was able to automatically reconcile client and investment transactions, both cash and non-cash, and then record thousands of financial transactions, and automatically manage the payment and receipts process, through to the bank.

Signature Business Solutions (Pty) Ltd has over 15 years’ experience in the financial services industry with some of the biggest listed financial services companies on the planet, which include but aren’t restricted to: SILICA, LIBERTY LIFE, GUARDRISK, STANDARD BANK, ABSA, DISCOVERY, VITALITY AND SANLAM Our goal is to increase the efficiency of your financial, IT and operational administration processes; with the use of the iCompare Platform. We do this by seamlessly integrating some of our existing, Data Management (ELT), Reconciliation, Transformation, Allocation, Receipt & Payment, Active Reports, and digital Sign-Off automated modules, within the iCompare Platform.

The reconciliation module is designed specifically to simplify and automate the reconciliation and settlement processes, reducing time and cost by up to 60%. The iCompare Platform automates the processes from data collection (including mapping, validation and normalizing) and aggregation through to matching and exception reporting, ensuring data accuracy.

Signatures Business Solutions iCompare Platform is an end-to-end solution that loads data through innovative digital readers, matches transactions from multiple sources at the same time, manages exceptions, resolves conflicts, generates file reports.

Then uploads files to hosts and/or interchanges. Our convenient and ease-of-use reconciliation solution reduces time and hassles of reconciling then settling through multiple network connections, which could include, SAP systems, Oracle, and other cloud services.

We are always happy to present our full suite of services to you; simply email us on info@signature.co.za or give us a call on 011 236 0620, to arrange a meeting.

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SILICA

a broader distribution that they don’t have to grow by themselves and it reduces cost,” explains Smith.

Silica has proven its ability to go beyond software development. As industry-leading experts in the trade technology space, utilising knowledge of the market, the company is continually but sustainably growing its product and service portfolio to help grow the business of its clients.

“We built a digital KYC capability with digital signatures and wealth managers can add these components to their front-end so that they make transactions completely electronically.

The KYC does a huge number of checks across multiple data bases including home affairs, police and more, giving a risk overview in just seven seconds.

“We have added our own retirement annuity and other products so that

independent wealth managers can get access. If they don’t want to go to one of the big brands to access these products, they can use ours. We don’t market them externally, but we see it is a building block for wealth managers and large financial advisors to use to build their practices and grow their brand,” outlines Smith.

The result – a climb to the top of the industry and a strong position in terms of market share and reputation.

Currently, Silica has 65-70% of the market in South Africa, helps customers to consistently grow their asset base, and is expanding internationally.

Of course, the Graphite solution remains the focus in the short-term and Smith and Silica are keen to make the most of a clear path forward before competitors begin to catch on to the strength of the product.

“Graphite is a very unique offering

and does not have a direct competitor at this stage,” says Smith. “Some of the traditional LISP providers see themselves as competition but we don’t treat them as competition as they could become clients of Graphite. We are saying that their differentiator shouldn’t be execution as that is what gets commoditised. If you want to commoditise, come to a place where that can be done at scale.

We rather focus on the front-end, the channel, the experience of people that are using products and services. That is not what Graphite does. Graphite does not put its own channel out there. We want to partner with people that own that and can service that themselves.

From a Graphite point of view, we are not seeing competition apart from a couple of software providers that are trying to come into our market – that is the closest we have for now.”

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INDUSTRY FOCUS: TECHNOLOGY

NEW GEOGRAPHIES Having conquered much of the South African trade technology space, the next growth frontier for Silica is abroad.

The company is already active in the UK and the Channel Islands, and Smith sees further international expansion as obvious and necessary.

“There is a limit to how much you want to saturate a market with one client. When we have Graphite going, our next thing will be to go into different geographies,” he says. “We believe one of our strengths is that we work in a niche, we are very focussed and we don’t spread ourselves too thin.

We are not trying to rush out and get growth at any cost. We have built up what we are doing in the local market from a third-party administration point of view, we’re getting Graphite going, and only when we get to a certain maturity level on that curve will we look to expand into other markets.”

This carefully considered approach to growth will begin in the UK and will eventually move East.

“We have around R500 billion outside of sub-Saharan Africa, with R200 billion of that in the UK, so it’s not huge,” he adds. “We have toe holds there and that keeps us relevant in the market so we would look at growth in the UK. We are also interested in looking

// WE STARTED OFF AS PURE TECHNOLOGY AND BECAME VERY MUCH AN ADMINISTRATOR AND WE ARE NOW IN A BLEND WHERE TECHNOLOGY IS STARTING TO COME BACK TO THE FOREFRONT AGAIN // 12 / www.enterprise-africa.net

to the East, to India and Asia, and see what is happening in those markets.

We understand the UK a lot better and there are some very dominant players in that market so that would make it interesting for us.”

Expansion outside of South Africa will result in further exposure to global best practice and world-class service providers which is only a good thing for the business.

“There is a huge amount of price pressure happening in this industry globally and I think there is still much to settle after Brexit and other influences.

We have chosen a path where we like to have deep knowledge of what we are doing and where we can partner with our clients. Some other companies might be more aggressive in their growth strategy but we have a shareholder who likes us to ensure we can maintain service levels and carry on being innovative by bringing new products and services to the market,” says Smith.

He confirms that more new ideas are in the pipeline but remain in the development stage while Silica decides on its medium to longer term strategy.

SOUTH AFRICAN ROOTS While many companies that have achieved the success experienced by Silica over the past two decades are quickly bought up and incorporated into large listed organisations, this is one business that is not being touted around for sale or expressing desire for independence from shareholders.

The only change that Silica will face in the future will be the movement of its owner Investec Asset Management out of the listed Investec group, becoming Ninety One Fund Managers – itself a listed entity on the JSE. The name Ninety One reflects the heritage of Investec Asset Management, established in 1991 and the rebrand and demerger is aimed at providing a better service and outcomes for clients as an independent asset manager.

Smith, who joined Silica in 2015, details more about the initial development of the company as an answer to a call from Investec.

“Investec Asset Management needed a new registry platform for unit trusts and mutual funds. The local incumbent was not seen as good enough going forward. It was felt that they were not investing enough in the platform and, because of the environment of the time, there weren’t any real international players in the market,” he details.

“To try and get an international player in the market was expensive.

So, they decided to build a proprietary system in-house. While they were planning, they decided to take an analyst that who knew a lot about the business, Daniel Micali, and brought in Michael Prentice as MD, and they partnered with a local software development house. They were tasked with building the software for a client registry business system for unit trusts.

They got it going and Investec Asset Management said ‘if you can build this and sell it to a couple of new clients within two years, we will spin you off into a separate company as opposed to you just being an in-house department’.

They did that successfully and they built a very nice platform – that is how Silica started as a software company.”

Next, after around five years of success, Silica was starting to dominate its market and understand its clients needs further. The obvious next step was into third-party administration – this was a request from local and international clients. No one wanted to buy just software; everyone wanted it as part of a service package.

The Silica team went back to its shareholder and explained about their findings in the market. Investec agreed and became the first and anchor client for Silica’s third-party administration services. This move helped the company to grow into the UK and helped Silica to pick up more clients while converting software clients to TPA at the same time.

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INDUSTRY FOCUS: TECHNOLOGY

The next step in the Silica growth story was moving digital. Everything was in place but the company needed to understand more about the appetite of its clients and their customers.

“Around six years ago, we started talking to clients and explaining that if they want to drive cost, convenience and customer experience, they have to start looking at digital. One of our large banking clients, as well as Investec, was very keen to adopt this and get into the web space so we started building websites for clients as well as integration into their larger group channels so they could start moving people from manual to digital,” explains Smith.

“Asset management is quite different from banking. In online banking, people are generally transacting and viewing bank accounts fairly regularly whereas, from an investment point of view, you buy in and then you wait. You generally only view accounts or make switches very infrequently. From an advisor space, people are moving quickly towards digital.”

Silica is firmly behind the move to digital and, despite making significant revenues from manual transactions and data capture, is ready to assist clients wherever necessary on the journey toward digital ecosystems.

“We’ve had to undertake a lot of insight to get our business ready for that because we had a high number of staff that were purely data capturers.

Our business has gone through an interesting cycle. We started off as pure technology and became very much an administrator and we are now in a blend where technology is starting to come back to the forefront again.”

INVESTMENT CONSTRAINT? During Tito Mboweni’s budget speech in February, the Finance Minister announced that economic growth would likely be slower than previously expected, reaching just 0.9% in 2020.

For a thriving investment climate, this is not good news. But Smith is not worried and says that Silica is helping clients to save money during tough times by taking trading digital.

“Our clients are under pressure” he admits “but many are realising that moving to a digital service does bring down cost, it makes things more scalable, and that is where we still see clients investing. Competition has become more fierce as the pot of money isn’t growing. Many of them are introducing offshore funds to their portfolios. Looking at South African GDP as a percentage of global GDP, you should not have all of your money in one geography which is such a small part of overall world GDP performance.

We are seeing people trying to find platforms that allow them to connect to funds so that they can move money offshore. That is part of the Graphite journey. In the longer-term, Graphite will connect with international fund managers so that those ranges can be sold locally.”

The expectation is that meaningful economic growth will not return to the country until after 2021 but Silica remains firmly set on a growth trajectory thanks to its exposure to international markets and its integration with many industry leading clients at home in South Africa. Stats SA found that for the last quarter of 2019, the finance industry managed to post an improvement of 2.7% while almost all other posted contractions.

THE UNIQUE, THE SPECIAL Like any business, especially tech businesses, people are at the heart of everything that has been achieved and everything that is planned for the future. The company admits that its success is intricately tied to its people and so there is a constant focus on nurturing and developing an outstanding company culture.

Perhaps the one shared factor across all successful business operations, a positive culture is simply a must if you are to succeed. At Silica, culture has received much attention and is now helping to convey the brand message about ‘making investments accessible’.

“Years ago, we redefined our

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SILICA

purpose,” says Smith. “We decided we need to be more than just a company with a statement around being the best third-party administrator in the market.

We came up with the purpose of ‘making investments accessible’. We do that by providing our clients, asset managers, products and services that help them to growth their businesses - that is a core driver for us.”

To ensure the company’s innovative culture and human-centric working environment, Silica invests heavily in the upskilling of its people – even if that results in them leaving.

“We need to look at our culture and the values and behaviours that sit behind that. You can have a value statement but unless that is creating behaviours, it’s just writing on the wall. We put a lot of work into our values and there is a lot of literature behind that. Part of it is about being a lot more transparent. When you are digitising your business and driving a lot of automation there is a potential impact on staff so we decided that we have to create a learning culture. We have developed the learning academy where staff can access courses and partner up with mentors, work with them, and eventually upskill themselves. We might not be able to absorb all of those skills but it makes for a general market which is highly skilled. That is totally free for all employees. We have also partnered with other digital learning organisations to ensure that our staff take advantage of opportunities to improve their skillset and remain relevant. We celebrate as much if staff upskill and gain a role elsewhere as if a staff member upskills and stays with Silica,” says Smith.

This idea has been introduced to ensure a fluid mindset among the company’s 480 people – there is no chance of getting comfortable and things going stale.

“We have to take people on a journey,” adds Smith. “If we have people who are in a role that might be disappearing, we have to explain why and be open about things, offering new programmes to reskill. People have to

be adaptable. Things that are ok today in terms of service levels will have changed tomorrow. The world is changing at an incredible pace. If you think your role won’t change, the expectation of your clients will always increase.”

By mid-2020 Investec Asset Management will be Ninety One Fund Managers, Graphite will be fully up and running, Silica will be further down the line with international expansion, and new faces will start arriving at HQ. The company is proof that the investment world never stops moving and this is why digitising, and partnering with the best, is so important. For Smith, there will be no complacency.

“It’s been quite a journey. It has been very hard. We are optimistic about the future but fully aware that is not just going to happen. You have to make tough choices. If you want to build a great

culture, it has to be owned and led top down, because if it’s not, it doesn’t set in.

“It’s not that we don’t see any headwinds, but we do believe there is opportunity out there.”

Some of the biggest names in the business trust Silica: FNB, Stanlib, Nedgroup Investments, Investec Asset Management, Old Mutual, Alexander Forbes Investments, Prudential Investment Managers, Capricorn Asset Management, Ashburton Investments, Sanlam and more are all running Silica systems, and all have benefitted.

Technology is the backbone of business that helps set the best apart from the rest.

For Smith and the entire team at Silica, the future is certainly looking bright.

WWW.SILICA.NET

www.enterprise-africa.net / 15

SATIB INSURANCE BROKERS

SATIB Celebrates 30 Years of

Protecting African Tourism PRODUCTION: Manelesi Dumasi

While SATIB Insurance Brokers has been at the forefront of the tourism and hospitality insurance market for three decades, protection needs continue to change. By investing in a digital strategy and new products surrounding cybercrime, this innovative organisation is readying itself for the next 30 years at the vanguard of this vital sector.

//

In June 2018, Dewald Cillie spoke to Enterprise Africa about the buzzing excitement across the SATIB Insurance Brokers business in South Africa after he took the reins of the company in January that year.

This unique and innovative company specialises in insurance and risk across hospitality and tourism – one of southern Africa’s most important industry sectors.

According to Stats SA, the number of tourist arrivals into South Africa alone will grow by 2023 to almost 20 million annually, contributing in a big way to the country’s economy. According to the World Travel and Tourism Council, tourism accounts for almost 3% of GDP and is responsible for more than R140 billion of income – some are even labelling the industry the ‘New Gold’.

This year, SATIB Insurance Brokers is celebrating 30 years of service in the

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vital industry and is planning strategies that will see it further entrenched in tourism across Africa.

“SATIB is turning 30 this year and it is a proud and humbling moment for us considering our clients have been trusting us for this long to look after their insurance requirements in the hospitality and tourism industry. It has never been an easy ride but we have been fortunate and we are looking forward to the year,” Cillie tells Enterprise Africa.

INDIAN OCEAN In 2018, SATIB had started a roll out across the Indian Ocean islands, basing itself in Mauritius and operating from a new brand – African Risk Transfer (ART).

Headed by industry expert Gavin Courtenay (son of SATIB founder, Brian), ART is a reinsurance brokerage business focussed on African expansion. Cillie is happy to report that progress in

Mauritius has been impressive.

“The Mauritius business has blown our minds in terms of how well it has done,” he smiles. “Having the right person at the helm in Mauritius has ensured we have exceeded expectations in terms of growth. We are far ahead of the targets we set and we have created some fantastic strategic partnerships with local businesses there. That has really helped to get us to where we are now and is creating a diverse footprint in Mauritius and into Africa.”

ART is now recognised for its A+ rated security, prompt claims settlement, and efficient and personal service.

According to Cillie the drivers of success in Mauritius include innovative thinking and effective relationship building.

“Firstly, we have bought in a fresh approach to how we do things in these territories. This sprouts from our experience over the years. We are

INDUSTRY FOCUS: FINANCE

not tied down to the normal way of handling insurance.

“Secondly, it’s the strategic partnerships that we have managed to build with the right people, who have a common view of business growth in Africa,” he says.

Like SATIB in South Africa, ART allows for businesses in tourism and hospitality to run free of worry. The experience within the company makes for a strong proposition and this is evidenced in the expansion that has been achieved to date.

With offices in nine African countries, SATIB is already a continental player. In 2018, plans were being developed to expand heavily in Mozambique. Recent growth in the Indian Ocean islands have caused those plans to be slowed down while exponential growth was serviced from Mauritius.

“There has been progress in Mozambique but it has been slower than we expected,” details Cillie. “Our Indian Ocean island growth strategy has surpassed our expectations and in a very short period of time we have also opened an office in the Seychelles.

The attention that we needed in those two areas has caused other growth areas to take a back seat. Mozambique is still on the cards but we don’t have anything formalised there yet - we are still in negotiations and it is a very delicate negotiation process there. We hope to have a solution there in the next 12 months.”

// IF WE DID NOT HAVE THE PEOPLE THAT WE HAVE, WHO HAVE DEDICATED SO MUCH TIME TO ENSURE OUR CLIENTS’ NEEDS ARE LOOKED AFTER, WE WOULD NOT BE WHERE WE ARE // 18 / www.enterprise-africa.net

DIGITAL FUTURE An inevitable element in the future mix of the insurance space is digital offerings. Some companies are already deep into the roll out of modern digital strategies, which include everything from roboadvice and AI communications through to novel insurance products to mitigate risk in the digital space.

For SATIB, entering the market with a digital product, or moving operations to become more digitally focussed is no simple task. The number of products and risks that the company works with, alongside the number of very different clients in very different environments, requires a considered, phased approach to digital integration.

Back in 2018, Cillie was clear that digital was the future, calling a strategy switch inevitable. Currently, SATIB is working on a digital solution to add to its overall offering for Africa. The innovation will be carefully considered and sustainable, and will help both the company and its clients to remain costcompetitive.

SATIB already brings economies of scale to clients thanks to its set up as part of the firstEquity Insurance Group and local partnership with PSG Insure. “firstEquity insurance group is our holding structure and that is where SATIB, ART and all of the other brands fall into. The collective buying power that we bring into the group is a bonus and allows us to bring more cost-effective solutions our client-base,” explains Cillie.

“We have made a lot of progress with our digital growth and we have managed to build our framework for that digital strategy. We are quite far advanced at this stage and we are busy adapting our existing products within our group offering to fit within the structure of our digital landscape. Our decision was that we would try and do this without throwing ridiculous money at it. Our Group CEO, Vis Govender is running with the project personally and he has been very hands on,

// IT’S ABSOLUTELY VERY POSITIVE AND WE BELIEVE WE ARE CONTRIBUTING TO SAVING LIVES AND KEEPING TOURISTS SAFE IN SA // working with a small team and doing all of the development in-house which has allowed for it to be done quite cost-effectively.

“Hopefully this year we will be ready for testing by Q3 and we can then start thinking of launch strategies,” he adds.

Digital transformation and disruption is perhaps one of the biggest risks to existing insurers (no strangers to risk), as innovative new start ups enter the industry utilising all new tools including machine learning, Internet of Things, blockchain, data analytics and other emerging technologies. While SATIB certainly will not be making people redundant to incorporate digital cost savings, the company is planning to become more and more digital as it grows.

“It is a plan of ours to take whatever we do into emerging markets. We haven’t finalised this strategy but, with this digital product and how we are developing it, it will give us an easy platform to take this into emerging markets around the world.”

CYBERCRIME One area of the digital space that SATIB will have to be fully versed on in the short- and longer-term future is cybercrime. As one of the fastest growing strains of criminal activity worldwide, cybercrime can be immeasurably destructive for businesses.

Sophisticated criminal groups use phishing, identity theft and other intimidating strategies to debilitate company systems and, potentially, steal information and money.

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INDUSTRY FOCUS: FINANCE

“Cybercrime is now probably Africa’s biggest risk and is becoming more and more frequent. Online fraud equates to around R6 billion lost in South Africa,” admits Cillie.

“This is a risk that businesses need to be aware of. The incapacitating ability of such an attack on a business is frightening. Unfortunately, we have been the target of cyber-attacks and if it wasn’t for our preparedness and our policy to fall back on, it could have been crippling to the business.”

Having experienced the panic and stress of cybercrime, SATIB itself is an example of how to handle the situation – have relevant and comprehensive cover alongside robust systems and protections.

Coincidentally, the attempted cyber attack on SATIB came just as the company was readying to promote its cyber insurance offering.

Underwriting Director, Carla Gillham recently travelled to London and world-leading insurance

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organisation Lloyd’s of London to understand more about the issue.

“For local business to remain competitive amongst international booking agents, and their competitors, cyber insurance is a prerequisite for sustainability and competitive advantage,” she says. “EU booking agents will be reluctant to expose themselves to the cyber risk of local businesses who don’t have cover.

African businesses that do purchase the cover can then use it as a marketing tool to differentiate themselves from other providers who do not, which will give them a competitive advantage.”

According to SATIB: “If your business stores client and supplier information for debit orders, or any other billing requirements at all, you fall within in the scope of a cybercriminal target.”

This is why Cillie is so keen to push new cyber insurance products and insure the industry is doing everything possible to minimise risk.

“We are still dealing with the fallout from the attack on our company and it makes it feel very personal. It’s scary that it coincided with the start of our campaign. We are using the opportunity that comes with our 30th anniversary to raise awareness within our client base of certain new risks in the market.”

The SATIB cyber policy can assist with data breach incident response, offering a direct contact to a specialist legal firm ready to investigate and develop a response plan. The product also boasts an extension for covering against financial losses that may arise from criminal strategies such as phishing.

30 YEARS YOUNG While SATIB is busy celebrating three decades of success, it is not resting on laurels or focussing only on achievements of the past.

The company has certainly come a long way from the days when Brian Courtenay founded SATIB in 1990 but, even during this year

SATIB INSURANCE BROKERS

of celebration, Cillie is clear that focus on excellence must remain to help the company during what is a turning out to be a difficult period for the regional economy.

“It’s such an uncertain situation that we find ourselves in,” he admits.

“We sit with large scale corruption at government level and obviously that has left us with a massive fiscal debt that we are trying to service daily. It’s a very tough environment for any business in South Africa at that stage. We have the drawback of also not having a trustworthy and steady power source and all of this hampers confidence. It really is a tough environment and we have seen tourism numbers decrease. There are many negative outlooks and there is a lot of uncertainty in South Africa and of South Africa.

“As South Africans, we are always positive and optimistic about the outlook and where we can go. If we are left with no option but to fight, then we will fight.”

For Cillie, a highlight from SATIB’s portfolio – an example of where the company has made a real difference in the life of clients – is the development and launch of the SATIB24 Crisis Call product.

Membership allows for 24/7 direct access to a hotline to help deal with emergency situations. Doctors, nurses, paramedics and even air evacuation services are among the long list of facilities on offer.

“It is one of our biggest offerings for the hospitality and tourism industry,” says Cillie. “We handle around 60 incidents a month and

// CYBERCRIME IS NOW PROBABLY AFRICA’S BIGGEST RISK AND IS BECOMING MORE AND MORE FREQUENT //

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100 YEARS

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that varies from tooth ache to very serious medical evacuations from remote areas to equipped medical facilities. It’s absolutely very positive and we believe we are contributing to saving lives and keeping tourists safe in SA, making sure they get the best medical facilities so they can recover from whatever incident they may experience.”

The CEO is hoping that SATIB can carry on delivering this type of top-class service for clients in the future, helping SATIB to start its next 30 years in the right way, leading the hospitality and tourism insurance industry. He is in no doubt about what is needed to continue in the same vein: brilliant work from fantastic people – the nature of the insurance market.

“We are very happy and we

OF LEGAL EXCELLENCE THROUGH SPECIALISED EXPERTISE

attribute that to the human capital that we have. If we did not have the people that we have, who have dedicated so much time to ensure our clients’ needs are looked after, we would not be where we are.

We believe in the cliché that our people are the greatest asset and we will continue to build the business around them.”

For 30 years, SATIB has had business in the hospitality and tourism industry covered. While Africa looks to drive tourism in the future, SATIB is now better positioned than ever before to ensure the sector remains protected against all risks.

WWW.SATIB.CO.ZA

www.enterprise-africa.net / 21

FSCA

Regulators, Educators

and Innovators PRODUCTION: Timothy Reeder

If you are a financial institution offering a product or service in South Africa then you will already be very familiar with the Financial Sector Conduct Authority (FSCA). The market regulator of South Africa’s thriving, highly-regarded financial sector is heavily focused on enabling the consumer to make more informed choices than ever, and is mirroring the boom of Fintech in the country with its own revolutionary Innovation Hub.

//

South Africa’s financial services sector is a sophisticated network boasting dozens of domestic and foreign institutions providing a full range of services. These encompass commercial, retail and merchant banking, mortgage lending,

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insurance and investment, and are all backed by a sound regulatory and legal framework.

Often described as one of the most well-regulated and stable financial services industries in the world, South Africa’s financial industry was historically the jurisdiction of the

FSCA’s predecessor - the Financial Services Board (FSB).

Running until 2018, the FSB supervised and regulated the nonbank financial services industry in the public interest, and by all accounts, with relative success. So what prompted the formation of the FSCA?

INDUSTRY FOCUS: FINANCE

CHANGE IN SCOPE “Despite the FSB’s successes, there was a clear need for South Africa to have a dedicated conduct regulator that would ensure that financial institutions prioritise treating their customers fairly,” explains Tembisa Marele, Head of Communications at the FSCA. “The FSCA not only regulates how financial firms conduct themselves, but also empowers customers to make better financial decisions,” she goes on. “As part of our strategy, our mandate as a conduct regulator is to promote fair customer outcomes, provide financial education and assist in maintaining financial stability in South Africa.

“The FSCA’s prioritisation of financial inclusion is not just about increasing consumer access to financial products and services as an end,” Marele clarifies. “We want and need to ensure that this access enables South Africans to use appropriate financial products that meet their needs and improve their quality of life.”

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The FSCA has a much broader remit than the FSB enjoyed, with oversight of financial products and services like banking, services related to credit, and the buying and selling of foreign exchange. “This requires a shift in approach from the FSB’s traditional compliance driven model to one that is proactive, pre-emptive, risk-based and outcomes focused,” Marele impresses.

The scale of the change required has been significant, impacting how the FSCA is structured, resourced and skilled as well as how regulatory and supervisory frameworks are designed.

“In this time,” Marele describes of the changeover, “we made key appointments to the executive team, provided support in the development of primary legislation, drafted and published several regulatory instruments and assisted the industry to navigate the changes in regulation and legislation.

“We also prioritised engagements with our key stakeholders, as it remains our belief that it is only through a collaborative approach that we can effectively regulate the sector.” Marele is conservative, even

// IT REMAINS OUR BELIEF THAT IT IS ONLY THROUGH A COLLABORATIVE APPROACH THAT WE CAN EFFECTIVELY REGULATE THE SECTOR // humble in her assessment of the FSCA’s impact to date, but it has been keenly felt throughout the industry.

“We should look at the industry and its milestones in terms of whether or not it’s treating its customers fairly, and while there is some progress, it remains something that needs to continuously be prioritised and scrutinised.

“The concept of treating customers fairly is not new to the industry and for the past seven years we have sought to entrench it.

Although we continue to see progress, our efforts have been intensified under the FSCA.”

INDUSTRY FOCUS: FINANCE

EDUCATION AND INNOVATION One important aspect of the FSCA’s mandate requires it to provide education to financial customers and promote financial literacy and inclusion, which drives its consumer education strategy. Marele goes on to describe the form that this takes. “We are working to develop best practice for the monitoring and evaluation of the impact of consumer education initiatives undertaken by the financial services sector,” she delineates.

“We want to drive industry initiatives that are better coordinated to maximise the impact of the sector’s spend on financial education, and ensure that this leads to changes in the behaviour of South Africans when it comes to money.

“We’ve partnered with the Department of Public Works to provide financial literacy to participants of the Expanded Public Works Programme (EPWP), and we’re coordinating national financial

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education projects such as Money Smart Week and the Financial Literacy Schools Speech Competition,” Marele adds, by way of illustration.

Perhaps chief among the imminent causes of excitement for Marele is the FSCA’s Fintech Innovation Hub, which, in partnership with the South African Reserve Bank (SARB), will see the body collaborate with all other regulators in the Fintech sector to create solutions for the South African market.

“The decision to follow a multi-regulator approach to the regulation of Fintechs uses an agile and design-thinking approach,” says Marele, “which has culminated in the impending establishment of the Innovation Hub. “The idea is to facilitate innovation in the sector in a manner that is coordinated, collaborative and controlled.”

The Hub will be used as a vehicle to engage with the Fintech ecosystem,

// WE WANT TO DRIVE INDUSTRY INITIATIVES THAT ARE BETTER COORDINATED TO MAXIMISE THE IMPACT OF THE SECTOR’S SPEND ON FINANCIAL EDUCATION // enabling regulators to craft new policies and innovate. “The Hub encompasses a Regulatory Guidance Unit, which is the first entry point for Fintech firms to obtain support in navigating the regulatory landscape and data and insights from the Unit will inform policy development,” Marele expands.

“There will also be a Regulatory Sandbox that will provide a live testing environment, that balances the risks

FSCA

and benefits of introducing innovative solutions to the market and which cannot be addressed within the current regulatory framework. An Innovation Accelerator will drive innovation, with common benefits across participating regulators and solutions.

“Additionally, an Internal Innovation Function will be owned by each regulator and will interface with the Innovation Hub. This is where

// THE CONCEPT OF TREATING CUSTOMERS FAIRLY IS NOT NEW TO THE INDUSTRY AND FOR THE PAST SEVEN YEARS WE HAVE SOUGHT TO ENTRENCH IT //

disruptive technologies and leading practices identified in the Hub will be recommended for consideration by individual regulators.”

Fintech is recognised to be rapidly transforming the essence of global financial services, and no more is it in evidence than in the SA space.

South Africa has been posited as the Fintech capital of the continent, with the industry managing to grow its investment value from $15 million to $170 million in 2018, and continuing this positive trajectory in 2019.

Marele is in absolute accordance with the suggestion of a fundamental shift towards the widespread integration of technology into the sector moving forward. “There are currently 217 active operational Fintech companies in South Africa operating across eight of the subsegments,” she says. “Some Fintechs operate across more than one segment which increases the total number of Fintechs to 224. These were founded in the last eleven years and

the number is expected to grow as the adoption of technology increases.

“In the future, financial regulators will be faced with the challenge of achieving a balance between supporting innovation, and managing the potential risk they pose,” Marele warns of the flip side to the many opportunities such endeavours present.

“They are imperative to supporting Fintech growth, but at the same time we must maintain a stable financial system.” This is really the essence of the FSCA: doing everything in its power to educate and facilitate the needs of consumers, while keeping the all-important equilibrium to ensure the continued success of one of South Africa’s true success sectors.

WWW.FSCA.CO.ZA

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SECURITAS RSA

Anti- Crime’s Second Front PRODUCTION: Colin Chinery

Part of the 53 nation Securitas Group, Securitas RSA protects South African homes and businesses, shaped by a holistic approach and its three guiding principles of ‘Honesty, Vigilance, Helpfulness.’ Far from usurping the South African Police Service – as some critic’s claim – Country President Ashleigh Parry says the private security sector is delivering a necessary and complimentary service. www.enterprise-africa.net / 29

INDUSTRY FOCUS: SECURITY

//

Crime, long a threat in the daily life of the ordinary South African, continues its fearful climb; robberies with aggravating circumstances up 39% since 2012, and murder cases and home robberies up by a third.

And as the crime stats soar, public confidence in the national police force plunges.

On a 2017/18 World Economic Forum scorecard of police reliability to enforce the law, South Africa ranked in the bottom 13% of 137 countries.

Ashleigh Parry, Country President of Securitas RSA, the South African operation of global security giant Securitas refutes this, arguing that private security is delivering a necessary and complimentary service.

NO FAITH Two years on, and nearly one in two citizens say they have no faith in the 150,000 frontline officer South African Police Service.

And since law and order, like nature, abhors a vacuum, the country’s private security industry now dwarfs SAPS, with well over twice as many private security officials as police officers.

While most South Africans are re-assured by this second line of defence, critics say it is increasingly, even illegally, usurping the powers of police.

FILLING THE GAP “As well as crime, there are allegations of deep levels of corruption within much of our State arm. It seems maladministration of state funds has stretched public resources and created an enormous gap in the state’s ability to provide effective security to both private residents and businesses. This has created a real need for additional security services, and the gap is being filled by the private security industry.

“I realise this is almost like a begrudging service since we would like our police to be able to do it. But

30 / www.enterprise-africa.net

// CHALLENGES CAN BRING OPPORTUNITIES, AND IF YOU CAN FIND WAYS OF WORKING WITHIN THESE CONFINED SPACES THERE ARE ENORMOUS OPPORTUNITIES FOR GROWTH // through no fault of their own, the police are very stretched and have neither the capacity nor resources to deal with the demands of our environment.

“We support our police and work closely with them. And of course, there is a boundary to our legislative capabilities, and unlike the police, as private security officials, we are not allowed to execute the law.”

Headquartered in Sweden, where it was founded in 1934, Securitas grew through acquisitions - Pinkerton, the legendary American detective agency that pursued Butch Cassidy and the Sundance Kid, was one - and is now the largest private security provider in the world, with over 300,000 employees in 53 countries across North and South America, Europe, Africa, Australia, the Middle East and Asia.

SECURITAS RSA

INDUSTRY LEADER Leaders in the transformation of the global security industry, from traditional guarding to a wide range of protective services, Securitas came to South Africa in 2009, since when it has been protecting homes and businesses, shaped by a holistic approach and its three guiding principles of ‘Honesty, Vigilance, Helpfulness.’

Acquisitions figured heavily in the first 18 months of the South African operation which saw a 700% growth rate. Now with a staff of 4500, Securitas South Africa is looking to match its global brand’s ambition and double its business by 2023.

This, says Parry, will be delivered by organic growth, and a stake in Securitas global-wide paradigm shift combining manned security services with advanced security technology.

“We are looking a lot at analytics, the CCTV aspects, and how we can apply them. We have clients with vast areas of space, such as in mining, quarrying and extensive areas of warehousing.”

Putting technology in these types of situations not only advances the ability to have eyes everywhere, says Parry, but also its capacity to supervise staff on the ground and respond to their requirements.

MANPOWER PLUS TECHNOLOGY “We believe there is quite a substantial and significant requirement for complementing manpower with technology.

“This allows not only for an enormous improvement in productivity, but also a cost reduction.

However, this is not to completely get rid of the man in a uniform, but rather to compliment.”

Last month a mediation settlement averted a security guard strike after failed wage talks between management and union representatives. Parry denies staff salaries are a calculation in the move to new technologies.

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www.enterprise-africa.net / 31

INDUSTRY FOCUS: SECURITY

“It’s not a driver. We fully support these wage increases. They make for a better standard of living, and at the end of the day, a happier member of staff.

“Times are very tough, but I don’t want anyone to think that this is something we can capitalise on. People in unfortunate circumstances should not be taken advantage of, and we want to provide good and valued jobs for our staff.”

The high-tech paradigm shift prioritised by Securitas, is shaped by both a wider embedding of existing and incorporation of new technology.

“Technology is always evolving, so we have to keep up with that.

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“Locally and internationally, we invest heavily in R&D to ensure we are keeping abreast of all these advances, allowing us to create the very best solutions for our client’s needs on a case-by-case basis.”

SA SPECIFICS A deep understanding of the security business, together with local knowledge and the ability to lean on its global operation and financial resources, means Sandton-headquartered Securitas RSA is well positioned to address distinctive South African needs and the specific challenges facing its clients, says the South Africa Securitas

chief who arrived at her command post six months ago.

And from these complex national challenges, emerges operational sophistication. “I guess South Africa has a crime savvy approach, and so we find that compared with some countries, we are quite advanced from the technical aspects.

“Crime, I’m afraid, is a matter of fact in South Africa’s daily life. Our criminals, their tactics and execution, are constantly evolving, and we need to ensure that at least we are at keeping one step ahead.”

The causes of crime are routinely part explained by many factors such as a poor economic performance, exacerbated by State corruption, cronyism and nepotism - yawning inequalities, and unemployment now running at over 29% (46% of black people are unemployed, and 9.8% of white). Parry acknowledges causes and effects.

“While South Africa’s economy is in - to use a loose term - dire straits, this creates an environment that is conducive to rising crime levels, and a situation where the requirement for security will continue to be demanding.

SECURITAS RSA

“I also believe that as we go on our journey as South Africa, and our continuing uncovering of corruption and corrupt practice, more and more companies will want to do business in a transparent manner and with ethical partners. And we pride ourselves on being ethical, with values and standards in line with this.

INCREASING MARKET SHARE “And unlike some of our competitors, we are finding more and more that we are passing through due diligence processes with ease, and I believe this will stand us in good stead in increasing our market share and business aims and goals.”

With further acquisitions discounted for the present, growth will come from new clients and new sales. But competition within the well-established, big stakeholder South African security sector is tough.

“Yes, it’s really hard. Awareness of our global brand here in South Africa is limited, and increasing that awareness is a very big focus of ours. I believe that one of our best marketing tools is to provide an excellent service so that people will talk about South Africa

Securitas, and hopefully refer us.”

Suggestions that expansion might include penetration of Africa north of the Limpopo are met with caution.

“While not in the short or medium term, it’s certainly on the radar, and it would take a very foolish person not to consider it.”

Meantime President Cyril Ramaphosa has announced plans to improve policing in South Africa – with a focus on improved police visibility, training of police officers, and an improvement in the quality of general and specialised SAPS investigations.

RAMAPHOSA WARNS And on the economic front, the President warned this week that unless the country acts to turn things around, there will be yet more difficult times ahead.

“Put simply,” said Ramaphosa, “we are spending far more than we are earning, with debt service costs now the fastest-growing area of expenditure.

“This position is precarious and unsustainable. We need to make significant changes and we need to make them now.”

Ashleigh Parry is supportive.

“My personal view is that President Ramaphosa is striking on all fronts, but there’s political infighting and trying not to alienate portions of his base.

“It’s a hugely obstacle-ridden path that he has to walk. It won’t happen overnight, but it would give some confidence to foreign investors if things happened more quickly.

CHALLENGE AND OPPORTUNITY “But it is not all doom and gloom.

Challenges can bring opportunities, and if you can find ways of working within these confined spaces there are enormous opportunities for growth.”

And for Securitas RSA - continued expansion to a doubling of business by 2023?

“Yes, I believe we are on track. The opportunities are there, and with the right commitment and focus we will achieve this.”

WWW.SECURITAS-RSA.CO.ZA

www.enterprise-africa.net / 33

ICONIC COLLECTIVE

Jawbone

Becomes Iconic PRODUCTION: Manelesi Dumasi

Jawbone Brand Experiences has joined the Iconic Collective, a unique integrated marketing and communications agency looking to break the traditional advertising model. Jawbone is now part of a family of eight businesses, each with different areas of expertise, and is on the hunt for new opportunities to help the group grow internationally. www.enterprise-africa.net / 35

INDUSTRY FOCUS: MARKETING

//

It’s a new era for Jawbone – South Africa’s leading brand activation and experiential marketing business. Established in 2008, Jawbone began life in Durban, as a one-man-band, handling outsourced marketing activities for some of the bigger agencies and manufacturing promo stands for exhibitions and conferences. The company always built strong relationships with clients and, because of this, realised there was more that could be done to help customers while strengthening partnerships. Jawbone grew into a brand activation business, helping brands like Nespresso, Lego, Orbit, Energade and White Snow to grow in South Africa.

The business became strong and during the tough years of 2016 and 2017, when many companies struggled thanks to economic weakness in the country, Founder and CEO Sven Reinertsen told Enterprise Africa about significant growth. Then, in 2018, a reorganisation of the business helped it to achieve national growth. Reinertsen explained that manufacturing and production would be formally separated from the activation agency but both

36 / www.enterprise-africa.net

would continue to work hand in hand as they serve international brands looking for market share in Africa.

After a highly impressive decade, going from start-up to established player, Jawbone was the picture of health – enjoying deep relationships with clients and a strong project pipeline. This success earned the company a reputation for excellence and this attracted the attention of the industry.

BECOMING ICONIC At the end of 2019, it was announced that Jawbone had joined the Iconic Collective – an integrated and hybrid advertising agency, made up of different businesses, founded in 2014 by CEO Dermot Latimer.

The Iconic Collective now consists of eight specialist companies, each offering up expertise in a different area of marketing: Jawbone, Iconic Digital, Prototyp Works, CMG, Meraki, Metriplex, Torque, and Fableist & Co. “We are proud to welcome Jawbone Brand Experiences to the Iconic Collective group,” says Latimer.

“Jawbone Brand Experiences is synonymous with providing flawless

// WE ARE NOT GOING IN TO JUST PUNT A SERVICE. WE ARE ASKING ‘WHAT ARE YOUR PROBLEMS AND HOW CAN WE SOLVE THEM’ // and effective on-the-ground delivery for experiential marketing and events, a service that will benefit our clients.

We are now eight agencies with one voice, operating as a collective of creative businesses to deliver end-toend solutions for our clients. Jawbone’s services will complement our existing shopper marketing, UX, development and technology, design, experiential, print, digital, creative production, public relations and post-production services.”

For Reinertsen, the ability to bring complementary skills together and to develop cross-sell opportunities was the big draw. “Between the eight businesses in the group, we can now compete with anyone globally because we are all experts at what we do,” he says.

ICONIC COLLECTIVE

The transition started in 2018 when Iconic CFO Rory Pirrie read about the success of Jawbone in Enterprise Africa.

Pirrie was a former rugby teammate of Reinertsen and he was keen to understand more about Jawbone’s unique service.

The pair engaged in conversation and it became clear that Iconic was a good fit for Jawbone. What Reinertsen certainly did not want was to sell up to a corporate that would change the nature of the business.

“We had been speaking loosely about setting up a group, there are various ways of looking at it,” he says, “but we knew that historically the way mergers had happened, specifically in the agency space in South Africa, people would go around on shopping sprees and acquire many small companies before pushing them all together and making them comply to a single system, process and culture.”

A scenario like this would have been disastrous for Jawbone which, over the past 10 years, had built a

thriving entrepreneurial culture where development is encouraged. For Jawbone to even entertain discussions about entering into a group, the culture fit had to be perfect.

“We have the mindset of being a family. Dermot is massive on culture and has been protecting that since the start,” says Reinertsen. “Trying to do this with an average culture would not be possible. The culture has to be strong – we are all onboard, we all understand what we are aiming for; we are aiming to break the advertising industry and that doesn’t happen easily. It certainly doesn’t come working at 80% - we are asking 100%+ from every single person within the group but because we have that culture, everyone is onboard. It really is unique and culture is probably the secret sauce that makes this all happen. Without it there would be too many egos, politics and back-end systems, and we have managed to put all of that aside and understand that as a family, we can make things happen.

Culture is the differentiator that allows

// WE ARE AIMING TO BREAK THE ADVERTISING INDUSTRY AND THAT DOESN’T HAPPEN EASILY //

us to make this work.”

In January, the latest edition to the Collective was finalised when Fableist & Co was added as the division responsible for PR. Headed by Tia Mthethwa, Fableist & Co brings another arm to the omnichannel approach provided by the Iconic Collective.

FAMILY DNA Mthethwa agrees that the culture within the group is a real differentiator and allows for a sense of freedom that is rarely present across the industry.

“We want everyone to realise that, even though they were individual businesses, the DNA of the culture is very exciting,” she tells Enterprise Africa.

“The culture that Dermot wanted when he began with the idea for the Iconic Collective was very intentional. He approached businesses that reflect the culture and values of Iconic. The familyorientated approach to business, where you put egos aside and work together, has allowed for seamless integration.

“Even though everyone came from individual businesses, what has been very apparent is that we all knew we needed each other to support different divisions. PR cannot be successful

www.enterprise-africa.net / 37

INDUSTRY FOCUS: MARKETING

without great brand activation; it’s about understanding how each piece fits into the puzzle to be holistic – there is a great understanding of that throughout the businesses.”

According to Forbes, a positive culture is the backbone of a happy workforce. It can result in recruitment improvements, increased loyalty, higher job satisfaction, smoother collaboration, stronger performance, better moral and reduced stress levels.

It is unlikely that the Iconic Collective will be adding further businesses to its portfolio right now.

There is a sense that the offering is now complete and the culture is stable.

“We have a solid offering as it stands with the eight business,” confirms Reinertsen. “We would add if we came across the right company but it’s not only the business, it’s the service offering, culture and leadership within that business. There is a lot of criteria that we would need to look to ensure the family works. Yes, there is still room to add more to the group but we’ve currently closed the loop and we don’t have any gaps where we stand. We are able to do almost anything inhouse but if we did come across a service provider that could add to the group we would consider it.”

PAYING OFF The first quarter of 2020 has been relatively successful for the Iconic Collective and its eight divisions.

Bedding in the businesses and

// WE CAN PROVIDE CLIENTS WITH A TRULY HOLISTIC, INTEGRATED SOLUTION TO GIVE THEM WHATEVER COMMUNICATION NEEDS THEY HAVE // 38 / www.enterprise-africa.net

// THE FAMILY-ORIENTATED APPROACH TO BUSINESS, WHERE YOU PUT EGOS ASIDE AND WORK TOGETHER, HAS ALLOWED FOR SEAMLESS INTEGRATION // establishing the culture which has been so important is not a quick and simple task, but the group has seemingly achieved it with ease.

In fact, at the start of the year, the Iconic Collective picked up its first client as a group. The customer, a cell phone brand, is launching into Africa and needs a full suite of marketing products, beyond what Jawbone can offer as an individual business.

“We presented as the Iconic Collective whereas previously, Jawbone would have approached for the activation side of the campaign alone,” says Reinertsen. “A big part of the pitch was awareness of the phone, and previously we would have outsourced the PR side of it, but we now have Tia onboard and the client could see the dynamic as a group of experts that all know what they are doing.”

Mthethwa agrees, saying: “We can provide clients with a truly holistic, integrated solution to give them whatever communication needs they have.”

Going forward, the Group’s project pipeline is strong. Each individual business had a set of clients before joining Iconic and these clients can now benefit from the improved range of services.

“We are now able to cross sell and up sell,” says Reinertsen. “Traditionally, Jawbone was the activation agency but we are now able to offer design, social media, digital services and more.

Geographically, Jawbone only had a Johannesburg office but we now have offices in Durban, Cape Town, Johannesburg, London, Dubai, and we are planning to open in Australia in the next 12 months.”

The Jawbone team has moved into the Iconic head office in Sandton, an impressive new building close to the Johannesburg Stock Exchange.

The open plan set-up complements the collaborative culture within the business and all of the group’s offices are organised in the same fashion.

“It’s great” admits Reinertsen “because Jawbone does not have a dedicated office in Cape Town but as part of Iconic we can send some of the greatest creative minds in the country to present to a client. As much as we are individual businesses, we are part of Iconic and we are stronger as one.

It’s about the collective and it’s about shared skills, resources, and minds. That is why we believe this is something different that doesn’t exist currently.”

The office in Dubai, a few blocks from the Jumeriah Palm, is set to take advantage of opportunities in various nations across the Middle East, where new international brands are entering the market and looking to pick up share quickly. Some of these brands have worked with Iconic Collective businesses in Africa and are happy that the Group is developing a new presence in the region. The team in Dubai is an existing business with a client portfolio, acquired by Iconic, to kickstart activity. Reinertsen is confident that the Jawbone offering will be wellreceived in Dubai. “We feel there is a lot of opportunity to build on our strategy and execution business as well as our activation and event offering,” he says.

In Australia, Jawbone and Iconic are preparing to roll out alongside a client – a UK-based e-cigarette brand – for which Jawbone has handled all South African execution and brand activation.

The brand is looking for a global partner to assist with its international expansion and 53 exhibitions in various geographies, and now with the backing of the seven other companies in the Iconic group, Jawbone is perfectly

8 AGENCIES, ONE VOICE. Operating as a collective of creative businesses, our expertise encompasses shopper marketing; public relations and reputation management; UX/UI design; software and enterprise development; creative conceptual and design; experiential and event management; print and packaging design and production; digital and paid media strategy; and 2D & 3D animation with full post-production services.

icollective.agency

INDUSTRY FOCUS: MARKETING

positioned. “To try and do that out of South Africa is probably not realistic so we need to build presence further afield. The plan is to grow, eventually, into North and South America, but that is still at least three years away. Right now, we have identified opportunities particularly in Europe, the Middle East and Australia and that is where the focus will be in terms of international expansion,” details Reinertsen.

To date, clients old and new are happy with all that is emanating from the Iconic Collective. “Our clients have responded very well and they are more than happy to give us the chance to expand our offering with various group services,” says Reinertsen.

RETURN ON INVESTMENT With all of the early success that the Iconic Collective has achieved in its time as eight businesses with one voice, there is an inescapable drawback that has impacted even the biggest and busiest businesses in South Africa – the economic climate. Weak GDP growth, slow investor confidence and lacking

business sentiment has resulted in marketing spend diminishing or being considered more closely than ever before. Right now, return on investment (ROI) is absolutely critical.

When delivering campaigns, agencies must be able to track, change, and ultimately prove the success and worth of a project. Only those that can consistently deliver ROI are those that will achieve industry leading status.

For Iconic Collective, delivery for clients is at the heart of everything it does – the Group’s very existence came out of a desire to be entirely clientcentric and to build deep and lasting relationships. Without delivering ROI, this could never happen.

“It is true that people are not just going to throw money; you have to be able to show where it’s going and what it is doing. We can now advise further and shift a marketing plan to ensure added value,” explains Reinertsen.

“That is why this merger made more sense,” he continues. “Within the group, there is a business called Prototyp Works that does app

development, builds dashboards, and does amazing things with data.

We definitely now have the ability to monitor and capture data and feedback to the client through our dashboards – they can see how campaigns are going and monitor hit rates. ROI is massive and involves the customer experience. We even have the ability to shift a campaign if it’s not working as we thought, where before we would have to wait for a campaign to end before we could analyse the data. Live data allows us to tweak and make adjustments as we go.”

Mthethwa says that, ultimately, there are cost savings to be made when dealing with an integrated agency.

“We have entered the market at a very difficult time, but our offering brings more value for money,” she explains. “Previously, a client was going out to different agencies but now they have a one-stop-shop, multi-disciplinary agency with various divisions. Looking at time and spend, if you had been working with different independents, results would have taken you longer and cost you more. Regardless of the tough

Dermot Latimer (Iconic Collective CEO), Mitch Bowker (Iconic Collective COO), Sven Reinertsen (Jawbone CEO)

40 / www.enterprise-africa.net

ICONIC COLLECTIVE

economy, we are offering something that makes business sense and in the long run, it is best for our clients’ interests to work with an integrated agency like ours.”

According to PWC, advertising spend was hit hardest by economic slowdown in 2017 (a year when the economy grew by just 1.3%). An improvement is expected to 2022, with a 3.3% CAGR bringing total advertising revenue to R41.5 billion, from R35.3 billion in 2017.

“Marketing budgets are definitely down and the challenge we had before was trying to sell them brand activation and experiential marketing services but now, we can understand business needs, even with a smaller budget we can offer new services – perhaps look at something digital, get online – and then look at linking online and offline,” says Reinertsen. “We are now selling a holistic service. Before, each business was selling what it can do whereas now, we can sell what the group can do. It’s all about value and if I can’t add value but Tia can, I can ask Tia to go see the client and help to solve their problems.”

This fresh approach has helped the Iconic Collective to support some of the most iconic brands on the planet.

“We are having different conversations in boardrooms now,” smiles Reinertsen. “We are not going in to just punt a service. We are asking ‘what are your problems and how can we solve them’. We try to understand the company, the brand, the consumer purchase journey, what can we do to add value to make that consumer feel more comfortable, how can we educate the consumer better – it’s a very different mindset.”

With so many South African businesses now looking to localise the supply chain, large international agencies are feeling the pressure.

For a hybrid, integrated agency, that is sees its clients as partners rather than customers, and is a truly South African operation, there are many opportunities.

“I have worked for really big agencies where the focus, after getting the brief, was how can we build the case study – that is not solving the client’s problems and it is more about stoking

our own ego,” explains Mthethwa.

Clearly, the Iconic Collective is the right home for Jawbone and its seven partner companies. The culture fits, the product works, the services are complimentary, clients are open and willing, and the long-term vision is consistent across the Group.

“We do not fit into the advertising community, we’re outsiders; and we’re cool with that,” states Iconic Collective.

“We don’t subscribe to the traditional thinking that exists in our industry, because we believe that thinking is fundamentally broken. Everything we do is centred around relationships; it is the very soul of us. Everything else is secondary.”

For this agency family, it seems the only way is up, and the target for global reach while breaking the ad industry locally seems closer than most might dare to think.

ICOLLECTIVE.AGENCY

www.enterprise-africa.net / 41

PHUMELELA GAMING & LEISURE

Phumelela Continues to Set the Pace in SA Gambling PRODUCTION: Benjamin Southwold

Over the course of the last decade South Africa has positioned itself as one of the most important gambling countries on the African continent. Horse racing in Gauteng was corporatised and totally restructured in 1997, the year of Phumelela’s formation, and alongside its sub-division, TellyTrack, it has grown to become the leading horse racing and sports betting organisation in the country. www.enterprise-africa.net / 43

INDUSTRY FOCUS: ENTERTAINMENT

//

Sports gambling revenue in South Africa continues to evidence healthy, yearly growth, with revenues ahead of Nigeria and Kenya. If the industry continues to grow in line with the predictions released by the National Gambling Board (NGB) in June 2019, forecasting a compounded rate of more than 5%, the South African gambling industry will be worth R35bn by 2021.

Casino and lottery dominate the share of gambling industry sectors, sports betting is responsible for 21% of gross gaming revenue in the country. “Recent football tournaments, including last year’s World Cup, have helped boost these figures,” Roy Coughlan, online acquisition specialist, and head of performance marketing at Kwiff, told iGB Affiliate, “but sports betting promises further opportunities for expansion.”

44 / www.enterprise-africa.net

A cursory glance at Google Trends indicates that the market’s potential is clear to see, showing how interest in sports-specific betting terms has increased since 2014. Many new operators have since arrived, with an influx of local and international players looking to make their mark; there are currently more than 40 active Western Capelicensed bookmakers in both the retail and online spheres.

“Traditional retailers are mobilising their online offerings and new online-only brands are offering the South African public a smooth and easy way to place their bets,” is Roy Coughlan’s take.

“The question is, what is the market betting on? Unsurprisingly, global sports such as football and horse racing are taking the lion’s share of the money, followed by rugby, cricket and tennis.”

COLLECTIVE STRENGTH Phumelela is both a licensed totalisator (tote) and racing operator, and “from its inception, has set about implementing strategies to enable horse racing to withstand the impact of competition from other forms of gambling and simultaneously create a solid platform for racing’s longterm viability.”

A key aspect of its capturing of the SA market, and increasing horse racing’s competitiveness in the face of stiff competition, has been Phumelela’s recognition of the power of collaboration and cooperation. To address the needs of horse racing as a sport, Gold Circle, Kenilworth Racing and Phumelela have co-operated in several areas, and perhaps most importantly in the creation of a combined national tote under the TAB banner.

The trio also manage the

PHUMELELA GAMING & LEISURE

// SPORTS BETTING PROMISES FURTHER OPPORTUNITIES FOR EXPANSION // production of one national horse racing database, which forms the core intellectual property upon which informed betting is based. Tellytrack, meanwhile, is a joint operation which manages the production of televised horse racing as both a local and export product.

TellyTrack made headlines last year when it joined the World Broadcast to show live coverage of the Investec Derby, from Epsom Downs Racecourse in the UK. More than 30 broadcasters across the globe, among them major networks such as NBC, CBC, ESPN, ITV and SuperSport, covered the £1,625,000 what many see as the greatest flat race in the world.

Phumelela is having to rely more than ever on the strength of its partnerships following its latest financial report. Just beating the deadline set by the JSE to release its results for the previous year to the end of July, Phumelela posted its worst year since the business was first incorporated in 1997.

Phumelela had been facing suspension from the JSE after it failed to submit its provisional report within the three-month period stipulated in the listing requirements, putting the company’s securities at risk of suspension and possible removal.

The eventual release of the results did not bring cause for fanfare, sadly, It said its international operations were continuing to perform at a high level but conversely the local operations, both horse racing and betting, had come in way below par. “International operations contributed R223.4million in pre-tax profit, but

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INDUSTRY FOCUS: ENTERTAINMENT

local operations lost a combined R332.4m, up from R51.9m compared to last year,” the group expanded.

Phumelela attributed its poor performance to a number of factors, including political turbulence, increasing unemployment, higher tax and inflationary administered prices.

“The increase in value-added tax (VAT) to 15% with effect from April 1, 2018, is a direct cost to the group,” it added.

“This cost the group approximately R26m for the fourmonth period to July and will have an annualised negative impact of approximately R75m. The group has had no alternative but to take further decisive measures to cut costs, with in excess of 15% of the group’s workforce retrenched and premises closed,” Phumelela said.

MOVING FORWARD Phumelela reported a headline loss of R98.2m compared with headline earnings of R155.6m, and headline loss a share of 98.2cents a share compared with the headline earnings per share of 154.23c reported last year. Loss for the year amounted to R95.82m compared with a profit of R151.75m.

These figures of course did not make for pleasant reading, but Phumelela is not new to having to weather storms and defy the odds; back in 2016 it was able to achieve, as it put it, “solid progress in all business areas,” against a backdrop of low economic growth and continued pressure on consumers. It was also during a period of intensive investing in diversification and international growth.

// THE GROUP HAS HAD NO ALTERNATIVE BUT TO TAKE FURTHER DECISIVE MEASURES TO CUT COSTS // Phumelela is moving forward under new stewardship, with the retirement of longstanding chairman Bernard Kantor prompting the announcement in January of his replacement, Moses Tembe, who joined Phumelela as lead independent director in 2018. “ The board would like to thank Bernard Kantor for his contribution and leadership as chairman,” were

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The vaults of Slovakia’s Love Bank are covered in the 2 900 verses of a romantic poem and each deposit box is filled with keepsakes, such as wedding rings, World War II letters and even ticket stubs from the first movie that couples in love saw together.

The exhibition in Banska Stiavnica is housed in the cellar of the inspiration for the 1846 poem Marina – whose parents married her off to another man rather than letting her wed poor student and poet Andrej Sladkovic.

“I think the story is great when love, no matter the hurdles, lasted forever,” said Eliska Galisova, who was yet to choose what trinket her and boyfriend Rezny would leave for all-time. Matus – Reuters

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the warm wishes directed his way.

“The board also wishes Kantor every success in his future endeavours.” Tembe takes the reins as the group considers how to best shape the next stage of its story.

Since it came into being nearly a quarter of a century ago the group has enjoyed many momentous moments. The establishment of TellyTrack, its exclusive television channel for horse racing, perhaps reigns supreme; all horse racing in South Africa and selected overseas races are now screened live on TellyTrack, an independent television channel (239) on the DStv bouquet.

It has also been behind the introduction of major new events, including the Triple Crown, Africa’s richest series of races for three-

year-olds, Champions Day and the SANSUI Summer Cup in 1999.

Champions Day and the Summer Cup now represent two of the “Big 4” on the South African horse racing calendar.

Phumelela will now look to make further history to add to a history stuffed with accomplishments. There has been an almost immediate bounceback on the part with a leap in January of the group share price by more than 13%, after Phumelela announced that it is considering capital raising initiatives.

“The company remains under cautionary as engagements with the MEC and the GGB are still in progress,” IOL reported from a statement to shareholders. “Should these initiatives be successfully

concluded these may have a material effect on the company’s securities,” the group concluded.

Phumelela has always bid to invest on the long-term sustainability of its sports and markets, and will surely rise from this latest setback in better form than ever.

WWW.PHUMELELA.COM

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PHOENIX AVIATION

25 Years of Reaching

New Heights PRODUCTION: David Napier

For more than 25 years, Kenya’s Phoenix Aviation has been transporting clients across the skies of Africa and further afield. Whether it’s VIP chartering, air ambulance transfer, or medical evacuation, this UN-trusted partner is truly one of the high flyers of the African aviation industry. www.enterprise-africa.net / 49

INDUSTRY FOCUS: TRANSPORT

//

Kenya’s buoyant aviation market looks set to fly higher than ever over the net two decades as the industry across the continent continues to boom. According the International Air Transport Association, the African aviation market will grow by 5% annually until 2040 thanks to the big commercial carriers adding more and more routes to their schedules and smaller budget airlines servicing second-tier airports, bringing travel opportunities closer to larger portions of the population.

It is expected that, by 2038, the market in Kenya will double with an additional 11.3 million passenger journeys, more than 449,000 more jobs and a US$11.3 billion (Sh1.1 trillion) boost to GDP. Kenya is among the top three aviation markets in Africa with some of the strongest potential for growth. But, away from the traditional passenger carrier market, there is even more possibility for expansion and the perfect example comes from Nairobi-based Phoenix Aviation.

SILVER ANNIVERSARY Founded in 1994, Phoenix Aviation celebrated its 25th anniversary last year and marked the occasion with the announcement that it would launch a new aeromedical offering, designed to meet the unique needs of clients requiring air ambulance services around the continent.

General Manager and Accountable Manager at Phoenix Aviation is Peter Wanyutu who tells Enterprise Africa more about a quarter century of success for the business.

// THE ONLY WAY TO SOLIDIFY OUR POSITION IS BY OFFERING THE BESTIN-CLASS SERVICE // 50 / www.enterprise-africa.net

“This year Phoenix Aviation celebrates 25 years of providing excellent aviation services,” he says.

“Phoenix Aviation plans to launch our new fully-fledged aeromedical wing – Phoenix Global Air Ambulance (PAA). We will have some marketing campaigns culminating in a gala event to be hosted in Nairobi.

“In the last 25 years, Phoenix became the biggest air ambulance company in the region. In addition, we provided the best executive charter services in the region,” he adds.

In its early days, the company started out as a maintenance and charter operation, servicing local clients on the African continent. The charter service was aimed at VIPs and was sold on the premise of saving time travelling across large distances. As the Phoenix reputation grew, the company was approached by more and different clients on the lookout for specialist providers. The first major form of expansion came when Phoenix started with an air ambulance service, providing evacuation flights from surrounding areas of conflict.

Alongside the United Nations, Phoenix was a vital cog in various missions across East Africa.

“Phoenix Aviation has been a UN approved vendor for many years,” confirms Wanyutu. “Supporting UN missions around the world has been an important part of our business.

Currently, we support UN missions in Africa with urgently needed aeromedical evacuation for frontline personnel requiring specialised medical care.

“This came about as a result of the conflict in our neighbourhood,” he continues. “For many years, Kenya was surrounded by countries that going through civil war. The humanitarian situation was grim, and Kenya was an island of peace and a base for most of the organisations offering humanitarian aid. Phoenix became one of the aviation companies supporting the UN during this time.”

// THE HUMANITARIAN SITUATION WAS GRIM, AND KENYA WAS AN ISLAND OF PEACE AND A BASE FOR MOST OF THE ORGANISATIONS OFFERING HUMANITARIAN AID // Many of these situations involved work in hostile environments and transfer of patients to hospitals across the world. Phoenix has built a partnership network in order to complete these missions in the fastest and most efficient manner.

Much has changed in the region since the mid-90s. Today, technology has improved beyond comprehension and the socio-economic-political climate in East Africa is more stable.

This has helped the aviation industry to grow and service providers, both local and international, to gain a foothold in the market.

FLYING HIGHER Becoming an industry leader has been no easy feat and Phoenix Aviation has had to climb a long way in challenging conditions to make it to the top.

“Times have changed since 1994,” laughs Wanyutu. “There has been advancement in technology and many new operators in the region.

Competition is now high. At the same time, many airports have been developed in the region allowing more aviation access.

The regulatory framework has and continues to evolve, directly impacting the industry. The industry is very different now.”

Boasting a fleet made up of luxury jets from the likes of Cessna and Beechcraft, Phoenix has shaped a position that is the envy of the rest.

PHOENIX AVIATION

“Our unique fleet allows us to meet varying customer needs depending on the areas of operation,” says Wanyutu.

“There exists significant competition in the aviation industry.

Many new players have come into the industry and the customer now has a greater variety to choose from.

Due to our excellent services, we have managed to carve out a niche. Much of our business is outside Kenya. We have developed a strong brand in Africa and our customers are from many countries.”

This widespread customer base has helped the company to build international status and is the catalyst for further development through one of marketing’s greatest tools – word of mouth.

“From our perspective, the only way to solidify our position is by offering the best-in-class service. By offing the best

and most efficient service, the market will reward us,” details Wanyutu.

“One of our key milestones was obtaining the EASA TCO (European Union Aviation Safety Agency Third Country Operator) approval. This allows us to fly unrestricted between Africa and Europe. This has greatly enhanced our air ambulance capabilities.

The company’s growing presence sees demand coming from customers across new routes – especially on the air ambulance side - and the result is Phoenix Aviation looking at expanding its fleet to continue differentiating itself from competition.

“Geographically, we have a unique advantage because we are within a 10-hour reach of any point in Africa,” explains Wanyutu. “Many of our evacuation flights are destined to Europe, Asia or North America. Due to

this growing demand, we are looking at some long-range jet options that will give us non-stop access Europe, Asia and Far East. This will increase the comfort of our passengers and reduce the trip times. Our charter and medevac customers will welcome these advancements. We have not settled on any specific OEM’s yet.”

VIP EXPERIENCE Operating from a sophisticated engineering centre at Wilson Airport, Phoenix Aviation has the knowledge, experience, technology and innovative thinking available to it that other charter aviation businesses simply do not have.

For this reason, the company has become one of the go-to choices for VIP chartering, government private hire, and air ambulance services. Building

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INDUSTRY FOCUS: TRANSPORT

the private hire side of the business will be a focus for Phoenix in the future, as Wanyutu confirms.

“In the last 25 years, Phoenix became the biggest air ambulance company in the region. In addition, we provided the best executive charter services in the region,” he states.

“VIP charters have been a key revenue steam since our inception.

We have provided governments and corporations with VIP charter solutions for their Heads of States, Heads of Government, Prime Ministers and government delegations etc. At present, we have some government contracts providing VIP transport around the world. This is a niche we intend to develop in the coming years.”

In 2014, the company was given the go-ahead from the Kenyan Civil Aviation Authority to operate chartered passenger and cargo flights to China. The aim of the exercise was to transport Chinese delegates and

52 / www.enterprise-africa.net

business heads to Kenya, around the country to mining regions, and back.

This is the type of business that the company has become recognised for.

The Operations Control Centre handles all details to ensure a smooth, on schedule and valuable experience.

“Phoenix Aviation benchmarks itself to global aviation standards. In our business segment, we have to evolve to changing technological and customer requirements. I believe Phoenix has developed the acumen to change as required,” says Wanyutu.

Of course, a significant challenge that the company will have to face in the future is the environmental impact of air travel. Over the past quarter century, the number of flights taking off globally every day has increased dramatically.

The CO2 volumes produced from the expenditure of jet fuel has been under the spotlight, and the industry has been put under pressure to make changes.

Phoenix Aviation operates a

// WE HAVE A UNIQUE ADVANTAGE BECAUSE WE ARE WITHIN A 10HOUR REACH OF ANY POINT IN AFRICA // modern fleet, with efficient and economical engines, but Wanyutu is keen to state up to date to ensure the company’s reputation remains premier.

“There exists many opportunities for the aviation industry to further reduce the carbon footprint. Being a highly regulated industry, it requires balance,” he says.

“The International Civil Aviation Organization (ICAO) has published Standards and Recommended Practices (SARPs) for CO2 emissions reports prepared by aeroplane operators, in accordance with the provisions of the Carbon Offsetting and Reduction

PHOENIX AVIATION

Scheme for International Aviation (CORSIA). Phoenix Aviation is following this closely.

The aviation industry has made great strides towards operating in a sustainable and ethical manner. With the advancement in technology, we are reducing the use of paper and other natural resources. From a flight operations perspective, navigation technology has greatly improved with Performance Based Navigation (PBN).

ICAO and other regional aviation bodies are agreeing more direct routes to cut down on emissions.”

According to the Air Transport Action Group, the global aviation industry produces around 2% of all human-induced CO2 emissions and is responsible for 12% of CO2 emissions from all transport sources.

Clearly, more needs to be done to ensure sustainability in the market but, fortunately, Phoenix Aviation is cognisant of the challenges faced by the

industry and is working hard to ensure efficiency. All aircraft types operated by the company are subject to periodic proficiency checks and engineers are sent to training facilities in the UK and USA to complete courses.

But, even with the greatest intent, some companies have been held back from making significant investments thanks to slack economic performance in various African markets. Zimbabwe, Namibia, South Africa, and Nigeria have all underperformed in recent years but Wanyutu remains confident.

“We are projecting a growth in our business over the next 12 – 24 months.

We offer unique services and the economic fluctuations will not affect our plans,” he says.

In the future, according to the GM, the business model of Phoenix Aviation will help to continue with growth. For 25 years, excellence in service delivery has helped the company fly with the best.

As the industry and technology involved

makes advances, the company is willing to adapt to continue best serving its clients. “The long-term plan for Phoenix is to consolidate our business model,” says Wanyutu.

“Economies in Africa are growing and the infrastructure in improving every year. This will enable access to areas that were hitherto not served by aviation.

New markets will be created. Phoenix may evolve into scheduled passenger services for these new markets.”

As Africa’s air travel market booms, Phoenix Aviation is perfectly positioned to take advantage of all that the skies can offer, consistently delivering a completely personalised experience, delighting clients with every journey.

WWW.PHOENIXAVIATION.CO.KE

www.enterprise-africa.net / 53

TSHWANE RAPID TRANSIT

Economic Handbrake

Slows TRT Rollout PRODUCTION: David Napier

While the plans for development of the Tshwane Rapid Transit system are welldocumented – new buses, new routes, and more people – the economic climate has thrown up multiple challenges. CEO Samuel Matebane talks to Enterprise Africa about the plans that are in place, and when we can expect to see movement. www.enterprise-africa.net / 55

INDUSTRY FOCUS: TRANSPORT

//

From Ga-Rankuwa in the west to Bronkhorstspruit in the east, crossing the world-famous Pretoria CBD at its heart, the sprawling Tshwane Metropolitan Municipality is one of South Africa’s busiest cities. Almost three million people share this 2500 square mile part of Gauteng and the flow of people falls to a few specialist providers. Perhaps the most prominent public transport system is the Tshwane Rapid Transit (TRT).

The region’s version of a worldwide success story, bus rapid transit (BRT), the TRT is a modern and effective bus service designed around the Tshwane commuter.

For TRT CEO Samuel Matebane,

// FOR ME, THE THING THAT SHOWS WE ARE DOING WELL IS THAT WE HAVE BEEN FIGHTING OFF OTHER COMPANIES WHO ARE TRYING TO TAKE DRIVERS FROM US // 56 / www.enterprise-africa.net

2020 has started with mixed feelings.

The company on the cusp of significant expansion, that could see more and more residents able to benefit from the efficient and reliable bus service offered by the company, but economic and political issues have slowed progress.

Currently, the TRT has access to a segregated right-of-way infrastructure throughout the municipality, utilised by a fleet of modern buses that provide commuters with fast, easy and safe transport. Matebane would like to add more routes, more buses, and improved services but is waiting to receive approval from all parties involved.

“Our goal is to move all public transport from the city-centre and have them operate in the peripheries.

How possible is that considering the financial constraints in the country right now and the timescales we face?

That remains the question to which I have no answer right now,” he tells Enterprise Africa.

BUDGET IMPACT In February, Finance Minister Tito Mboweni’s budget speech detailed spending cuts which would hit transport and housing as the government looks to relieve pressure on its finances. Only urgent priorities

would receive significant attention and public transport spending would be reduced by R13.2 billion over the next three years.

“It does impact us,” admits Matebane. “Transport may not be a priority for all but when you look at the percentage of household income spent on transport you see that, for the poorer, it’s a large portion of their income so that does impact us directly.”

TRT is built on the principle of providing excellent customer service.

With this budget news, TRT plans to invest in new buses – especially environmentally friendly compressed natural gas (CNG) powered buses – will be re-evaluated.

“We are reviewing the situation and reprioritising as we work with the City of Tshwane on these matters. From a roll out point of view, there will likely be a slowdown,” says Matebane.

“We have 114 buses right now. 40 of those businesses have been successfully converted to CNG. It’s good for the environment, there are less emissions, and they produce less noise than regular buses. With global warming and various environmental concerns that have become prominent, we have had to look at how we can expand and how we are making an impact.”

TSHWANE RAPID TRANSIT

SUSTAINABLE FUTURE While initial outlay for CNG converted buses is large, the long-term impacts make sense, both financially and environmentally. Eventually, the target at TRT is for all buses to run on CNG or similar systems. With government expenditure under the spotlight like never before, any investment will be meticulously considered as Matebane explains.

// IT’S GOOD FOR THE ENVIRONMENT, THERE ARE LESS EMISSIONS, AND THEY PRODUCE LESS NOISE THAN REGULAR BUSES //

“Looking at buses with environmental credentials, like a solar powered house, the initial cost is higher than the normal conventional product – that is a big factor for us to consider.

We are paying a premium right now in order for us to benefit in the longer term but we are busy deciding on what is best for the company and it is certainly not a decision we take lightly.

“We would like to purchase around 57 new buses in the future and we are in discussions surrounding that right now. When we are ready to partner with OEMs, we will ask the question about whether we purchase CNG buses or conventional buses. Any acquisitions will be price dependent.”

In terms of running cost, the price of fuel (diesel) came down 54 cents in March. Even with the Rand depreciating against the Dollar, the prices of petrol

and diesel came down. For TRT, using a fleet of CNG buses allows for improved bulk buying capabilities which will result in savings.

“Our aim has always been to move further into natural gas as we expand.

The main reason for that is that the more fuel we use, the economies of scale bring the average costs down which helps us a lot in the long run,” details Matebane.

In terms of expanding the reach of the system to new communities, growth is pencilled in for Q2 and Q3, helping to further entrench the reach and reputation of TRT. COMMUNITY ASSET “The company is viewed in a very positive way and the communities of Tshwane are very proud of the company,” insists Matebane. “We see

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INDUSTRY FOCUS: TRANSPORT

that in the number of passengers that we are moving – on average, 25,000 per day. Day in day out we have enquiries about our expansion.

“We will be expanding in April,” he adds. “Through that expansion, we are expecting another 15,000 people per day onto our buses. In July, there will be another expansion and that is when the new buses will come in handy.”

The route between Loftus stadium and Menlyn will receive attention and continues with a growth strategy that has been in place for a long time.

“It is all part of the strategy which was developed in 2014. We have reprioritised based on the cost and budget situation but overall expansion has been planned for a long time and we are looking forward to getting moving,” says Matebane.

Asked for more specifics on time frames for new buses and route expansion, the CEO is unsure. “We work alongside the city so we have to wait and see,” he says. “A lot of decisions are made at government level so it is difficult to commit to certain times but

58 / www.enterprise-africa.net

I know that in the next financial year we are aiming to complete the purchase of the 57 new buses.”

REALISTIC GOALS Over the past 12 months, there has been frustration from some commuters when services have been cancelled or changed without notice. The vision of TRT is to be the leading passenger transport operator in the continent. So, is it possible considering the challenges that the country and company faces; especially with a range of different competitors all vying for market share in the municipality?

“It is realistic,” confirms Matebane.

“Talking about competition, the BRT does not directly compete with the taxi industry. They are a feeder into that system so we see them as complementary. We do compete with other services but it really all depends where a person is travelling to and from.

We compete very well against other bus companies and we seem to be hitting the right buttons, so we are very proud of the work we do.”

TRT is not the only BRT in South Africa. Cape Town has the MyCiTi, Johannesburg has the Reya Vaya, George has the Go George BRT, Rustenburg has the Yarona, and the Nelson Mandela Bay had a BRT system put in place to service traffic during the 2010 FIFA World Cup. All have come under fire for operational inadequacy, but all continue to move South Africans to and from work on a daily basis. For TRT, some critics have pointed to the relatively small scope of the system when compared to initial promises from 2014. The imminent expansion should ease these concerns as the organisation targets coverage from Soshanguve to Mamelodi.

Matebane is enthusiastic about the future as the business continues to grow its reach, bringing it closer to its vision.

“Our focus area is the Mamelodi commuter bus service and we are busy making that business cost effective.

That is what excites me right now.

We are looking at leasing buses to add to the fleet and we are looking at automated collecting systems as well

TSHWANE RAPID TRANSIT

as adding more value in that space so that we can realise profits. We have a mandate to run that service for another three years from April 1 and that is what excites us,” he says.

Excitement from the CEO’s office spreads through the organisation.

TRT employs around 250 people throughout the business and Matebane, who has been in the industry for 10 years, is keen that all are regularly upskilled with relevant knowledge. For this reason, TRT is busy establishing a new training centre.

EMPLOYER OF CHOICE “In our business, we are recruiting the majority of employees, especially drivers, from the taxi industry. The skills in the taxi industry are different, so we are required to upskill and that is something we are continuing to do,” he says. “For me, the thing that shows we are doing well is that we have been fighting off other companies who are trying to take drivers from us.

Clearly, they recognise that our drivers are better so our continued focus on training is a very important thing for

us right now. We are ready to launch a new training centre for drivers and other employees and we will be taking drivers and asking them to help train new staff members while they go through various internal training programmes. Where we require external training, we will bring people inhouse to complete that.

It helps to save on cost and will save our drivers travelling a long way to external centres. We have the centre, we have the facilities, we have the skills. So we are saying, come and do your training here and save on the cost.

“Currently, we have 36 apprentices in training and we are happy with how the process is going, with various elements of training sponsored by the Department of Transport. It creates a bigger pool for us when we require new skills.”

For the most important people involved with TRT, its customers, the hope is that the service can continue running smoothly, quickly and safely, while expanding across the municipality and introducing new buses which improve sustainability credentials.

Of course, those within the business

will hope that the political and economic landscape can provide some predictability so that plans can be put in place. Unfortunately, they may be waiting for some time following the announcement at the start of the month that the City of Tshwane council would be dissolved and fresh elections would be held after the council had become dysfunctional since November 2019 meetings collapsed.

For Matebane, it’s business as usual as he continues to strive for ongoing improvement.

“We will persist with improving the socio-economic conditions and quality of life of all Tshwane residents, offering a better level of service as part of an integrated public transport system, and striving to be recognised as an employer of choice,” he concludes.

WWW.TSHWANETRANSIT.NET

www.enterprise-africa.net / 59

VOLVO TRUCKS SA

Innovation, Efficiency, Dependability Results in

Market Dominance PRODUCTION: David Napier

By delivering the core values of the long-established Volvo brand, Volvo Trucks South Africa is managing to claim industry-leading market share as a result of its world-class product and service portfolio. For those moving heavy and extra-heavy around South Africa, this company is positioning itself as the obvious first choice.

//

The Volvo brand is perhaps one of the world’s most trusted and standout when it comes to delivering on its promise - pioneering innovations that put people first, built on quality, safety and care for the environment.

Since 1927, the Swedish automaker has carved out market share alongside the world’s largest players and employs some 105,000 people around the world generating revenue of more than $44 billion in 2019.

In 1999, the passenger car operation of Volvo was sold to Ford before moving under the Geely Holding Group umbrella in 2010. This left the Volvo Group solely responsible for production, distribution and sale of trucks, buses and construction

60 / www.enterprise-africa.net

equipment along with other ancillary products and services.

Volvo Trucks is an industry leader, boasting many innovations and world firsts for its range of medium to heavy duty trucks. The trucks division of Volvo is services by 2100 dealers and 15 assembly plants across 130 countries.

In South Africa, Volvo Trucks was established 20 years ago. Previously, the brand had been imported and distributed by strategic partners but the company saw the potential in the country and set up shop on 13 February 2000.

After building a strong presence in South Africa, Volvo Trucks now offers up a range of high-quality options. The FH16, FH, FMX and FM are all extremely popular because of their

reliability, strength, quality build and safety credentials.

Unfortunately for Volvo Trucks, the South African economy has been under extreme pressure for a number of years with several factors combining to create a lack of business confidence and a slowdown in investment spending.

A truck from Volvo is a relatively high capital outlay and, even for the biggest businesses, when times are tough in the country this type of spend can often slowdown as organisations look to consolidate and perhaps make existing fleet last another year.

However, Volvo Trucks is a company that has navigated challenges many times before. The company is built on the reputation of overcoming difficult situations in harsh environments.

© Volvo

INDUSTRY FOCUS: AUTOMOTIVE

SA’S NUMBER 1 This was proven at the start of the year after the National Association of Automobile Manufacturers of South Africa (NAAMSA) released statistics showing Volvo Trucks market share at 23.2% for 2019.

Selling 3206 in South Africa and other African countries in the past year, Volvo Trucks grew its market share by 4.8% on 2018’s figures to claim the number one position in the industry.

With meaningful growth not expected to return to the South African economy in 2020, this was welcome news for Volvo Trucks and Vice President of Volvo Group Southern Africa, Marcus Hörberg who said: “Our customers and our staff are the main driving force behind everything we do. We believe that the quality of our products, our staff, service, parts and support, played a central role in increasing our market share. We will now work even harder to keep the trust our fleet owners have placed in us.”

The company’s units are assembled in Durban and distributed around South Africa and across the border into neighbouring countries including Botswana, Mozambique,

// OUR CUSTOMERS AND OUR STAFF ARE THE MAIN DRIVING FORCE BEHIND EVERYTHING WE DO. WE BELIEVE THAT THE QUALITY OF OUR PRODUCTS, OUR STAFF, SERVICE, PARTS AND SUPPORT, PLAYED A CENTRAL ROLE IN INCREASING OUR MARKET SHARE // 62 / www.enterprise-africa.net

Namibia, Zambia and Zimbabwe.

Hörberg committed to further investment in South Africa saying that the company would spend money on facility improvements, service centres and staff training.

“We are committed to continue increasing vehicle uptime and optimising vehicle utilisation for our fleet owners,” he said. “Aspects like connected services, flexible service contracts and preventative maintenance all assist fleet owners in keeping the wheels of their businesses turning.”

This investment will also help the company to maintain its position as the number one rated manufacturer in South Africa in terms of overall customer satisfaction. In December 2019, Data Track, a local research company that analyses customer experiences of over 37,500 truck and fleet operators in South Africa, confirmed its research shows Volvo Trucks is the top-rated truck manufacturer.

In January 2020, figures from NAAMSA suggested that Volvo’s efforts had been repaid, with the company selling 207 units in the extra heavy commercial sector (27.3% of the total), 73 units in the heavy commercial sector (26.3% of the total), and three units in the bus sector (10% of total).

These figures represent a total of 26.6% market share in the sectors that Volvo Trucks is active in the first month of the year.

FLEXI-GOLD In October 2019, Volvo Trucks announced the roll out of its new service contract, already established in some European markets, across South Africa. The FlexiGold plan is aimed at companies that need flexibility and adaptation based on markets and demand.

The idea of the usage-based Flexi-Gold contract is for hauliers to pay monthly fees, broken down into fixed and variable parts (km-based) tailored to the truck’s actual mileage. Through advanced telematics technology, vehicles communicate effortlessly with

// THE RAPID DEVELOPMENT OF CONNECTED SERVICES GIVES HAULIERS COMPLETELY NEW WAYS OF INCREASING VEHICLE UPTIME AND OPTIMISING VEHICLE UTILISATION // Volvo Trucks and provide information regarding actual usage which helps to account for fluctuations in seasonal demand – a big factor for those working in agriculture and construction.

“The rapid development of connected services gives hauliers completely new ways of increasing vehicle uptime and optimising vehicle utilisation. By adding flexibility to the payment model, we add another dimension to our offer. A pilot project for this new usage-based service contract has already been successfully implemented locally and will now be available for South African customers,” said Theunis Eloff, Aftermarket Director of Volvo Trucks Southern Africa.

The contract is different from what is currently available from Volvo and the rest of the market, and provides customers with a 40% flexibility span, where annual mileage can exceed or go under the agreed mileage by 20%.

This, combined with no extra invoicing paperwork, brings a much more flexible offering to clients.

“Many transport companies have short-term agreements with their clients or operate in unpredictable and fluctuating markets. They express a need for greater flexibility when it comes to service contracts. We now have the technology to make dynamic and connected solutions like this possible,” said Thomas Niemeijer,

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Business Development Manager, Service Contracts, Volvo Trucks.

“Quite simply, if you drive less, you pay less and vice versa. The Volvo Flexi-Gold Contract offers the same coverage and uptime as a Volvo Gold Contract, at the same predictable cost, but with much greater flexibility to adapt to changing business needs,” added Niemeijer.

FH I-SAVE The nature of Volvo is to be a pioneer.

Invention and innovation is in the company’s DNA. And helping to solve problems for clients is what helps to constantly improve the standing and reputation of Volvo Trucks.

Of course, one of the main concerns for hauliers is the cost of fuel. In South Africa, the Department of Mineral Resources and Energy announced in February that petrol prices would decrease by 13 cents and diesel prices would come down by five cents per litre. This small reprieve was welcomed by those in the transport and logistics industry. “Ongoing declines in the price of oil, since the second week of the year, will give South African fuel users

64 / www.enterprise-africa.net

a breather for February,” said South Africa’s Automobile Association (AA).

For Volvo Trucks, the ability to save clients money while pushing efficiency is important and so the company announced, in the first half of 2019, the launch of the FH I-Save.

This new model boasts the combined D13TC engine with updated fuelsaving features. The result is a 7% improvement in fuel efficiency with no loss of driveability features.

“Volvo FH with I-Save is our answer to this challenge. It is a complete

solution that combines our latest technology to substantially bring down fuel consumption in longhaul operations. And this is without compromising drivability,” said Roger Alm, President of Volvo Trucks.

Currently only available in Europe, the FH I-Save will be rolled out further afield if demand is strong. The model is targeted at those who drive more than 120,000 km each year and, with Southern Africa’s extensive road network, this could quite feasibly be the case for hauliers across the region.

VOLVO TRUCKS SA

© Volvo

UD TO ISUZU January’s figures for sales, according to NAAMSA, show that part of the Volvo Trucks offering to market included sale of the UD Trucks brand. Part of Volvo since 2007, UD has established its own brand strength and enjoys success across southern Africa.

But, at the end of 2019, Volvo Trucks and the Volvo Group announced that it would partner with Isuzu Motors to improve efficiencies and develop new technologies, with a part of the deal being ownership of UD Trucks passing from Volvo to Isuzu.

The result will be creation of the best long-term conditions for a stronger heavy-duty truck business for UD Trucks and Isuzu Motors in Japan and across international markets as well as deeper collaboration and technology expertise transfer between the two global businesses.

President and CEO of the Volvo Group, Martin Lundstedt, was positive about the plan, saying: “The Volvo Group and Isuzu Motors have a wellestablished relationship on mediumduty trucks in Japan based on mutual respect, shared values and win-win

spirit. We see great potential to extend our cooperation within technology, sales and service as well as other areas going forward, for the benefit of our customers and business partners. Our UD Trucks colleagues have done a great job to improve performance in recent years and the alliance opens up a great opportunity to continue the successful journey.”

President and Representative Director of Isuzu Motors, Masanori Katayama, agreed highlighting the opportunities for value creation going forward.

“Isuzu Motors and the Volvo Group strongly believe in the business opportunities and synergy potential between the two Groups. We intend to derive the full value from each other’s different specialties across product and geographical strongholds. Our collaboration will actively contribute to service improvements and strengthened customer satisfaction as well as to prepare ourselves for the forthcoming logistics revolution,” he said.

The non-binding Memorandum of Understanding signed between Volvo and Isuzu is expected to be

cemented by the middle of the year and completed in a binding format (subject to relevant approvals) by the end of the year.

The long-term impact on the business in southern Africa will take time to filter through, but Volvo Trucks has proven on so many occasions to be resilient and powerful and the likelihood is that things will continue as normal.

While Volvo Trucks continues to dominate market share and putting world-class products and services into the market, customers will continue to come. In South Africa it’s clear, Volvo Trucks is reliable, trustworthy and innovative, delivering everything you could need, and more, while moving around the country.

WWW.VOLVOTRUCKS.CO.ZA

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TALLIE MARINE

Far More Than Just

Staying Afloat PRODUCTION: William Denstone

Based in St Helena Bay, Western Cape, for more than 30 years the Tallie Marine boatyard has been South Africa’s one-stop, unrivalled ocean vessel boat building manufacturer and maintenance yard. South Africa has one of the world’s richest and longest maritime histories, and it is an industry which is receiving significant attention and investment as Tallie Marine continues to apply service excellence and pioneering technology to the craft of expert vessels. www.enterprise-africa.net / 67

INDUSTRY FOCUS: TRANSPORT

//

South Africa enjoys decades upon decades of experience when it comes to marine manufacturing and boat building, which shows no signs of abating.

Since 2014 the country has secured investments worth R30 billion and created over 7000 direct jobs in the ocean’s economy, with these coming mainly in infrastructure development, marine manufacturing, aquaculture, as well as the oil and gas sector.

South Africa’s oldest city, Cape Town, has a unique location at the southern tip of the African continent and is perfectly positioned on the South-South Trade Corridor, linking it to Asia, Africa and the East Coast of the Americas. In turn, this makes the ‘Mother City’ a bustling port for merchant and commercial fleets, housing several marine manufacturing, maintenance and repair companies that service local and international enterprises.

68 / www.enterprise-africa.net

HEART OF AN HISTORIC BAY Head just a short way north and you will find the spectacular St Helena Bay, in South Africa’s Western Cape.

It is historically notable for having been the site of Vasco da Gama’s first foray into South Africa, and today is famed as the only place on the West Coast where the sunrise over the sea is visible, distant dolphins enchanting shoreline spectators in the changing morning light.

The largest bay in Africa, the Dutch East India Company established an outpost there in the 17th century, while the Free Burghers found it a plentiful fishing spot, to which ships from the Cape settlement would regularly travel in search of resources to sustain the community.

It remains a major fishing town, and along with the port in Laaiplek is known as the home of South Africa’s fishing industry. Tinned fish products such as pilchards in tomato puree, hake

and fish-meal are processed at factory concentrations in communities like Stompneus Bay, West Point and Sandy Point, the eleven processing factories together providing more than half of the country’s R2 billion annual fish production.

At the heart of St Helena Bay is found the largest commercial glass-reinforced plastic (GRP) boat builder in Africa. Tallie Marine has come to be a hugely respected name in boat building and fishing, and synonymous with the famous Sandy Point Harbour. Situated in the harbour itself, it is the perfect

// INTEGRIT Y AND EXCELLENCE ARE THE PILL ARS OF TALLIE MARINE’S WORK ETHIC //

TALLIE MARINE

location to deliver the wide variety of services that the boatyard has to offer.

Four generations ago, the first Tallies landed in South Africa from Malta, and from humble beginnings began constructing wooden boats for the local market. Tallie Marine was first established as a maintenance and repair shop in 1988, working on wooden, steel and GRP vessels and in 1995, Anton Tallie designed the first GRP vessel as an alternative to the high maintenance and limited lifespan of wooden vessels.

Today Tallie Marine employs over 100 people and its name has spread far and wide throughout the boat building industry. Along the way vessels have been supplied to Mozambique, Namibia and to the Government of Angola, as well as of course to the local and vital South African market.

CHASING EXCELLENCE “Integrity and excellence are the pillars of Tallie Marine’s work ethic,” the company states. “We strive to maintain exceptionally high standards and hard-working mind sets that translate into a company that is viable, reliable and a source of upliftment for our employees.

“We believe in service - service to our people, and service to our customers”, Anton Tallie adds. Tallie Marine’s first competed GRP vessel remains special to the company, as it is the foundation on which the company’s legacy has been built over the course of the intervening nearly 25 years.

“Scarcity of the right wood for the right application, the price and the limited lifespan of wooden vessels moved us away from this form of

construction,” Tallie explains of the decision to move to GRP. Design innovation has long been key to remaining at the vanguard of SA boatbuilding, and a market leader in vessels of outstanding quality.

“Constantly we are staying up to date with current trends and ways to improve on designs,” Donna Tallie outlined to netwerk24. “Antonie Tallie is a creative force when it comes to innovation and designs are constantly evolving around clients’ needs and streamlining the vessels for maximum efficiency.

“Our vessels are built for strength and durability to maintain exceptional standards of safety,” Tallie further explained, and while striving for perfection in vessel engineering and execution is a constant preoccupation for Tallie

Triton Naval Architects Our services cover all aspects of Naval Architecture, Marine and Mechanical Engineering.

Supported by extensive computer packages and more than twenty five years experience in the local industry.

Clients include companies from industries such as: • • • • • • •

Fishing Offshore Diamond Mining Salvage Oil Exploration Harbour Services Defence / Protection Services Boat Building

www.triton.co.za | : +27 (0)21 418 2090 | : +27 (0)21 425 2722 | triton@triton.co.za

www.enterprise-africa.net / 69

INDUSTRY FOCUS: TRANSPORT

Marine, equally important is its larger contribution to the Cape and country.

“We are dedicated to providing viable employment in an unstable economic climate,” Tallie wrapped up, “where people come not only to work, but to learn and make good on opportunities to improve their lives.”

It is a company where people remain far longer than the average for the industry, and which is renowned for its recognition of employee achievement. This all adds up to a harmonious working environment, Tallie Marine depicts. “The atmosphere in our yard and workshops is fantastic.

We don’t have strikes, we don’t have problems. And that’s very important.”

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REVITALISING MARITIME INDUSTRY The South African boat building industry is currently worth well over R1 billion annually, and holds enormous further potential for the country’s economy. “We are keen to support sectors such as boat building to facilitate accelerated economic growth, job creation, and economic inclusion through skills development,” Cape Town mayoral committee

member for economic opportunities and asset management James Vos said in 2019.

Further growth and transformation of South Africa’s boatbuilding sector is forever being stimulated, as exemplified by last September’s investors workshop for aspirant local boatbuilders held by the Department of Transport. “There are opportunities in the sector and we can only get to the next level with new

// OUR VESSELS ARE BUILT FOR STRENGTH AND DURABILITY TO MAINTAIN EXCEPTIONAL STANDARDS OF SAFETY //

TALLIE MARINE

investors and players in the industry,” enthused SABBEX chairman Bruce Tedder, and SABBEX executive director Vanessa Davidson agreed.

“Recognition of the boatbuilding sector by the National Department of

// THE ATMOSPHERE IN OUR YARD AND WORKSHOPS IS FANTASTIC. WE DON’T HAVE STRIKES, WE DON’T HAVE PROBLEMS //

Transport is a great step and starts to firmly locate the marine manufacturing sector as a central tenet of our economy,” she mused.

South Africa has a coastline of 3900 km and an Exclusive Economic Zone (EEZ) of 1.5 million km2 - more than double South Africa’s landmass of 1.2 million km2. Operation Phakisa - ‘hurry up’ in Sesotho - was launched

by President Jacob Zuma in July 2014. It is billed as a flagship Oceans Economy geared toward unlocking the economic potential of South Africa’s oceans, which could contribute up to R177 billion to the GDP by 2033 and between 800,000 and one million direct jobs.

“A healthy ocean is very important to all life on earth,” sums up the Western Cape Government. “Billions of people depend on the ocean for their livelihoods and as a source of food.

We depend on the oceans for clean air and most of the oxygen we breathe.”

Such a close focus on our oceans can only spell prosperity for maritime giants like Tallie Marine, while serving to shore up our own health, economy and security.

WWW.TALLIEMARINE.COM

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LITHON PROJECT CONSULTANTS

Positive, Significant, Impactful:

The Lithon Way PRODUCTION: William Denstone

For leading African engineering firm Lithon Project Consultants, as for the majority of firms across the continent, the last 12 months has thrown up considerable challenge. With the worst of Namibia’s economic contraction apparently behind it, however, and recovery on the horizon, Founder and Executive Chairman Adriaan Grobler talks Enterprise Africa through how the company plans to adapt and maximise local opportunity to stay at the top of Namibian development. www.enterprise-africa.net / 73

INDUSTRY FOCUS: ENGINEERING

//

”Our aim is to make a significant impact in the lives of people and communities.” This is the key driver underpinning Lithon Project Consultants and the main reason behind Adriaan Grobler’s starting the firm in 2002, when he elected to follow what he felt was his true calling and how he could best make a difference.

Drivers of infrastructural and social change, Lithon means ‘cornerstone’ in Greek, and the group of companies has some to be known for its strongly valuedriven approach and an unbending focus on people.

Grobler is a self-styled ‘visiopreneur’, which he describes as someone who sees a better future and takes action to achieve it. “Call it a dreamer and a doer all in one,” he says.

Lithon Project Consultants reflects this in its turnkey, holistic service offering, through which it strives to turn clients’ dreams into reality.

“We are people-focused and aim to

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make the management of your project as seamless as possible by offering a full-spectrum project management service,” it outlines, “ranging from conceptualisation to completion.”

This is a significant selling point for Lithon Project Consultants - deep experience in the industry coupled with the ability to offer a complete solution that stems from feasibility studies and project planning through to design, tender preparation, site supervision, project management and many more related services.

“We are now one of the top five firms in Namibia,” Grobler proudly states of the firm’s rapid and sustained rise.

ECONOMIC IMPACT Over its lifetime Lithon has completed with trademark aplomb more than 200 projects, with many others in various stages of development. It has not been without its setbacks, however, and recent months have provided some of

the sternest challenges yet. “Starting up and growing a business is easier than keeping it going sustainably year after year – and that is where we are right now,” Grobler explains.

Owing largely to a brutal drought that wiped out livestock and left over half a million of its citizens without access to sufficient food, Namibia’s economy contracted by 1.9% in 2019.

“It has become clear that the impact of the drought on livestock and crops is likely to be more severe than earlier anticipated,” the National Bank stated, referring to southern Africa’s worst drought in a century.

Lithon Project Consulting has felt the effects of the contracting economy more keenly than most. In February 2019, a lot of the discussion centred around its involvement in the development of the new Otavi Rebar Manufacturing Plant, close to Namibia’s Etosha National Park.

The steel plant will use scrap metal

LITHON PROJECT CONSULTANTS

// IN THIS FINANCIAL YEAR ENDING APRIL OUR REVENUE INCREASE FROM THE PREVIOUS YEAR WAS 60%, AND WE WERE ABLE TO REDUCE OUR RUNNING COSTS WHICH LEAVES US IN A PROFITABLE SITUATION AT THE MOMENT AS A COMPANY // sourced from around Namibia and its neighbours to produce some 300,000 tons of billets and rebar each year. The products are vital for the development of local manufacturing, building and construction industries, and the plant has a projected revenue stream of US $205m in the first year of operation. On completion, it is suggested that the new plant will employ some 300 people.

“It will be tough. If we manage to achieve it, I will be very impressed,” Grobler admitted last year. “Projects of this nature are complex, especially on

the legal side, so there is a chance that delays can creep in.

“All companies in Namibia are going through a tough patch right now and the economy is not strong. We are all hoping for a quick turnaround, but we have accepted that it will be a tough journey,” he added - presciently, it transpires.

Twelve months ago, Grobler was hopeful that all arrangements would be finalised to allow the plant to be in operation by the end of 2021. The mishaps and delays which can dog

projects of this scale and scope have reared their head, however, as Grobler apprises us of the revised status of the mega-project.

“It is ongoing, and we are just awaiting the financial close, which we are still in the process of obtaining,” Grobler tells us. “We have been forced to rethink the project somewhat after a shift in focus from our original investors in Switzerland.

“They are still involved, but we are looking for alternative financial investors, and we remain hopeful that during the course of this year we will get this financial closure,” he goes on. “We have lost at least six months on this financial closure stage, but we are now in talks with both Nedbank and the World Bank as potential equity investors, and we will be able to shed more light on where we go next with Otavi Rebar in the next month or so.”

Continues on page 78

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DR. WEDER, KAUTA & HOVEKA Inc. Dr Weder, Kauta & Hoveka Incorporated specialises in li�ga�on, labour law, commercial law, corporate law, tax law and conveyancing.

The Firm currently operates from offices in Windhoek, Ongwediva, Swakopmund and Groo�ontein respec�vely.

The Firm is widely respected and recognised for its professionalism and excellence in service provision.Our strength and commitment lies in the diversity and experience of our professional staff. We pride ourselves in the apprecia�on of our clients’ requirements for quality legal services.

Dr Weder, Kauta & Hoveka’s unique professional ethos is derived from a combined period of over 70 years of legal experience within Namibia. This wealth of experience is further supported by a modern approach and apprecia�on of the contemporary legal se ng.

The partners of Dr Weder, Kruger & Hartmann and the directors of Kauta, Basson & Kamuhanga Incorporated merged with effect from the 1st of September 2006, both firms commenced to prac�ce as legal prac��oners under the name and style of Dr Weder, Kauta & Hoveka Incorporated. The merger of these two prominent legal firms was a first for independent Namibia, which now cons�tutes a truly empowered provider of professional legal services. It represents our aspira�on to create and maintain a Namibian en�ty, which meets the transforma�on brief, set out na�onally in order to make a meaningful contribu�on to the development of the country.

Windhoek Tel: 061 27 55 50

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PERFECT 2020 VISION. INDISPUTABLE REPUTATION AS PROVIDERS OF QUALITY LEGAL SERVICES

www.wkh-law.com

INDUSTRY FOCUS: ENGINEERING

Continued from page 75

LOCAL FOCUS Despite the difficulties heard from all players in the Namibian market, its economy is on the mend and the central bank forecasts that it will recover to growth of 1.5% this year and of 1.4% next year.

Finance Minister Calle Schlettwein was unequivocal in October of Namibia’s determination to attain economic recovery, sustainable growth and fiscal sustainability to promote economic progress and social transformation, highlighting some key strategies that would be used as a vehicle of economic recovery.

Adriaan Grobler has felt this shift in confidence: “Things are slowly turning around, and at least the government is spending a bit more now. Construction was probably the

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biggest sector that has collapsed in the last two or three years, when the government stopped spending.”

Lithon boasts a strong presence across Africa, taking in South Africa, Ghana, Angola, Kenya and Nigeria, but Lithon is clearly prioritising local projects to consolidate its business. “At the moment our focus is very much here in Namibia,” Grobler says of its core market.

“This is basically because of the economy and cashflow; it takes a big financial commitment to push out into Africa, and there are obvious risks involved, so we are holding back on these moves and focussing much more back here on Namibia. We foresee that this year for us will be a growth year.”

Grobler goes on to delineate exactly what these Namibian plans mean for Lithon in the immediate future. “We are busy with the updating of the Hosea Kutako airport, Namibia’s principal airport, which is a big one for

// WE FORESEE THAT THIS YEAR FOR US WILL BE A GROWTH YEAR // us - that is in its first phase.

“We have been appointed project managers for the undertaking and we have just completed the feasibility for the total upgrade,” Grobler reveals proudly. “Hopefully, towards the end of the year we will have received a decision on that.

“Another major one is the upgrade of Eros, Namibia’s second airport.

This has been delayed for almost two years on the government’s side due to funding but we have just completed the tender, and so will likely appoint a contractor very soon. This looks set to be a really profitable project, and these

LITHON PROJECT CONSULTANTS

are going to keep us busy this year.”

Grobler delves a little more into the financial hurdles his firm is having to overcome. “In the last two years the government has stopped spending, so a lot of the private clients have been a focus area,” he says.

“The banks are still very conservative at the moment, too, which means that people are struggling to get finance for projects. That is probably the biggest challenge at the moment.”

OPTIMISTIC FUTURE While the year since Enterprise Africa last heard in-depth about Lithon may

// AT THE MOMENT OUR FOCUS IS VERY MUCH HERE IN NAMIBIA //

not have brought exactly the results it had envisaged, the truth is that this group of companies has staved off the worst of the economic constraint which have proved fatal for so many, and can now look forward with hope. “We are lucky that we have sufficient work for the next year and onwards, whereas many others have really jangling nerves at the moment,” Grobler observes.

“It has been a tough fight, but in this financial year ending April our revenue increase from the previous year was 60%, and we were able to reduce our running costs which leaves us in a profitable situation at the moment as a company.

“It takes time to recover from a two or three year slump like we have just experienced, but we are one of the few firms that are positive,” he adds. “We have our expansion strategy in place for this year and we are focussed on starting to expand our business and further optimising our services.

“In the next six months, we have to maintain our focus here at home; improve our cashflow and turn around that area. Then we can start to lift our eyes again up further north,” Grobler explains.

Having faced up to and overcome the arduous recent times, Grobler is beginning to feel the buoyancy which has always characterised Lithon. “We are doing well and looking forward to an excellent 2020,” he rounds off, displaying the typical Lithon optimism and positivity, qualities which have enabled the company to enjoy nearly two decades of sparking change and influence in Namibia and surely many more to come.

WWW.LITHON.COM

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JUWI RENEWABLE ENERGIES SOUTH AFRICA

Hybrid Systems the Future

as Energy Opens Up PRODUCTION: Karl Pietersen

Eskom continues to fail when it comes to supplying consistent, reliable and clean energy for South African businesses and consumers. Fortunately, the market is beginning to open up and those with experience developing large on- or off-grid renewable solutions are well-placed to take advantages of significant opportunities.

//

Innovation in South Africa’s sorry energy sector is a welcome sight for many across the country. The general public as well as the business sector have voiced their dissatisfaction with the performance of Eskom, not for the first time. No longer is it acceptable for one of Africa’s leading economies to experience load shedding. No more should people have to worry about whether they will have lights, phones, and connectivity in their home and

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workplace. An alternative solution is needed and, while the government has been making efforts to change the energy mix for many years, progress must be ramped up.

In February, Minister of Environment, Forestry and Fisheries, Barbara Creecy, announced that the country would not ignore its responsibilities as a global citizen regarding climate change. The energy production industry is a major contributor to CO2 emissions globally

and, while South Africa’s energy industry needs to improve, it will not be done at the cost of the natural environment – according to Creecy.

“It is essential that the nations of the world stand together in support of the Paris Agreement. We have a common moral responsibility to future generations to honour our mutual commitments and our differentiated responsibilities to fight the causes and consequences of climate change,” she said.

INDUSTRY FOCUS: ENERGY

The government has previously committed to modernisation of the energy mix by introducing more renewable production and encouraging independent power producers (IPPs) who can install generating capacity from the likes of solar, wind, biogas and other renewable sources. While progress has been made, there is certainly more that can be done in this country of such abundance.

Rebates, tax incentives and other motivations have been put in place by the Department of Trade and Industry to encourage the adoption by potential manufacturers and end-users of the various energy systems including PV or fuel cell systems. There is also huge potential for skills development and employment creation in the renewable space – something which the government is desperate to fast track.

Whether it’s for climate and environment reasons, job creation and skill development reasons, future proofing reasons, or broadening the energy mix, investment into renewable energy production is vital and is not only on the agenda in South Africa, but has proven hugely successful around the world.

// HYBRID SYSTEMS ARE AT THE FOREFRONT OF TRANSFORMING THE REMOTE POWER GENERATION SECTOR AND THE RESOURCE INDUSTRY INTO ONE WITH A SUSTAINABLE FUTURE AS THEY OFFER EMISSIONFREE LOW-COST ENERGY // 82 / www.enterprise-africa.net

INVESTING IN CHANGE One company that is actively participating in the sector in South Africa is juwi Renewable Energies, the local arm of the global company, established in Germany in 1996. juwi officially opened its doors in South Africa in 2012 after realising the major potential for solar and wind energy across the region.

The company has proven itself in South Africa, building five utility scale solar plants, various wind farm projects, and a host of large embedded solar PV products. Under the government’s Renewable Energy Independent Power Producers Programme (REIPPP), juwi has installed 121 MW of solar power plant and is active in project development, Engineering, Procurement and Construction (EPC), and Operations and Maintenance (O&M) services alongside off-grid hybrid solar-diesel-storage energy solutions.

Now is an important time for IPPs in South Africa after President Ramaphosa stated in his 2020 State of the Nation Address (SONA) that municipalities would be given the option to purchase their own power from IPPs. Although we do not yet know when the official go ahead will be given, it will allow municipalities to choose the type of power they would want to purchase.

Also in the SONA, the President suggested that mining companies – some of the biggest users of energy in the country – would be allowed to produce their own power. This sentiment was welcomed by business and, as the largest gold mining nation in Africa and the largest platinum miner in the world, the industry has been desperate to produce its own power for years. Any excess could then be sold back to the grid.

For juwi, this news will be music to its ears. The company is already experienced in dealing with corporate clients and the perfect example comes from its partnership with Orion Minerals at the Prieska Zinc Copper Project in the Northern Cape.

NORTHERN CAPE SUCCESS In March 2019, juwi entered into a collaboration agreement with Repli Trading, a division of Orion Minerals, to study the potential for renewable energy generation at the Prieska Zinc Copper Project.

The idea is to build a 35 MW integrated solar and wind plant that can supply clean energy directly to mining operations from a site just 20km away.

Initial ideas came from the juwi installation at the Degrussa/Sandfire project in Australia. Also a hybrid generating solution, this off-grid project has saved the mine several million litres of diesel fuel resulting in Project of the Year status for 2016, awarded by Energy and Mines Magazine at the World Congress in Toronto. juwi now boasts years of operational data and an impressive 100% uptime which is attractive for miners and industries in rural areas. The plant has the potential to also supply power to the local community, something which the government is keen on.

Greg Austin, Managing Director at juwi said: “We are pleased to have this opportunity to work with Orion Minerals and to advance the use of renewable power in the mining industry.

Hybrid systems are at the forefront of transforming the remote power generation sector and the resource industry into one with a sustainable future as they offer emission-free lowcost energy.”

Errol Smart, Managing Director and CEO at Orion agreed, saying: “The agreement is in line with our strategy to make best use of our geographic advantages. The region has the highest irradiance levels in the country and is very well-situated for wind farms. It is already a well-established renewable energy generation region with 190 MW of solar power plants in operation and 240 MW of wind power under construction adjacent to our Prieska Project. The opportunity can only improve our power supply security, whilst lessening the burden on the national electricity grid and reducing our carbon and water footprint.”

CIVIL & GENERAL INFRASTRUCTURE

TRENCHLESS OPERATIONS • • • • •

This discipline specialises in: •

The development of all residential & industrial developments that include bulk storm water systems Bulk sewer & water reticulation pipelines / networks Micro piling & major concrete works Large bore pipelines Internal & external streets in & around residential & industrial developments.

• • • •

With over five years of combined experience, Raubex infra has the capabilities to ensure that your horizontal directional drilling (HDD) project is completed.

Since 2012 Raubex Infra has provided Horizontal Directional Drilling (HDD) solutions to numerous clients throughout Africa. At Raubex Infra, we approach each project with steadfast professionalism. We take pride in the experience of our personnel, quality of our equipment, & our commitment to deliver the highest quality of project available.

TELECOMMUNICATION & SPECIAL PROJECTS Telecommunications is a division of Raubex Infra & offers multidisciplinary solutions in predominantly different operational divisions, namely: • • • • • • •

Fibre & GSM Telecommunication Micro Trenching Fibre Internal/External Roads HDD Drilling Turnkey Solutions Fibre to Home Building of Subsidised Housing

Horizontal Directional Drilling Pit Drilling Pipe Jacking Mole Drilling Pipe Ploughing

ROADS & BULK EARTH WORKS This discipline’s activities consist of the following: • • • •

Cut & Fill operations Construction of platforms for solar plants & shopping centres.

Crushing Construction of earth darns & attenuation ponds Bulk earthworks & street construction

ELECTRICAL INFRASTRUCTURE & RENEWABLE ENERGY Raubex Infra’s Renewable Energy Division is a major role player in the REIPPP & private development industry specialising in PV, CSP & wind projects from 5MW to 150MW. Raubex Infra is a key player as Sub-EPC or Main Contractor specialising in the Electrical & Civil construction components of projects & is one of the few companies in South Africa that can complete electrical & civil balance of plant on these projects.

Raubex Infra has all the required plant, tools, equipment & qualified & experienced human resources to provide effective services ranging from Design & Engineering through to Construction, Commissioning & H& Over.

In addition to the above, Raubex Infra also specialises in the Installation of Electrical Reticulation & Distribution Infrastructure for Urban Development Projects.

Raubex Infra is a multidisciplinary construction company. With a history of success and a network of companies within the Raubex Group to support all our endeavours, we provide the end user with an integrated approach to reliable project delivery in the ever evolving globalized world. Proactive rather than reactive, we are at the forefront of new specialties and advantageous expertise. We are here to enhance people’s lifestyle and the economy through our services. Our services are distinctive because they are continuous. Our adaptability and the solid communication between the Raubex Group of Companies means we deliver results against all odds and external challenges. The level of service and anticipation of market development are what shape us.

Why? Because we are dedicated to making sure you, the customer, are satisfied, no matter how large or small your project is.

RAUBEX INFRA (Pty) Ltd Tel: 051 0111593 Website: www.raubexinfra.com Email: info.infra@raubex.com

INDUSTRY FOCUS: ENERGY

HOT PARTNERSHIPS In June 2019, juwi struck a deal with Reatile Renewables where the blackowned investment company would take a 20% stake in juwi’s EPC company. The EPC company is responsible for building solar PV plants in South Africa and is working on Round Four REIPP projects which will be connected to the grid.

Reatile is a serial investor in renewable energy initiatives and juwi is happy to bring on board a BBBEE partner.

After changes to round four renewable IPP projects system, where the Department of Energy required active shareholding and activity from project owners and contractors, juwi took steps to stop delays and move forwards. “juwi subsequently engaged with the lead equity on three projects, Old Mutual, and we have given them the commitment that we will be at least 40% black owned and at least 50% of that ownership will be through an active black industrialist shareholder. I am really delighted not only because our agreement with Reatile Renewables

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fulfils that objective, but also because there is a clear, broader strategic fit for the two companies,” said Austin. juwi is also ready to engage with Reatile regarding shareholding in its O&M business.

“We are really at the stage of taking the first steps on a much longer and deeper relationship journey that we will be exploring, in terms of Reatile’s participation in our projects in South Africa and on the continent, as it relates to our hybrid power projects focusing on mines,” he said.

Simphiwe Mehlomakulu, Chairman of Reatile Group, was clear about his company’s ambitions for the future of the energy space.

“The Reatile Group is interested in investing in megawatts throughout the continent,” he said. “Our vision is to diversify our energy mix away from fossil fuel and replace (or combine) it with renewables. We believe that renewables, as a clean energy, is the energy of the future. We want to make sure that for every rand we make in fossil fuel; we

make the same rand in renewables – so that when I die and leave this world, we have a neutral carbon footprint. “juwi has projects in South Africa and in Africa where they would want to have investors like Reatile Group to take equity investment in those projects, because we are interested in ownership of megawatts, the actual power that we sell,” he added. “The combination of investing in juwi, being the originator of the project as well as looking for an investor in some of its projects throughout Africa, it makes a very symbiotic relationship with Reatile Group that fits very well together.”

Mehlomakulu went on to highlight the strength of the juwi business in South Africa and globally. “They are strong in Germany and other parts of Europe. I visited the juwi head office in Germany last year, I was astounded by the technology and the support to the technology I saw. They are a well-capitalised company and are developing projects all over Africa and in South Africa,” he said.

JUWI RENEWABLE ENERGIES SOUTH AFRICA

In September, the two signed agreements where Reatile took a 43% shareholding in juwi’s solar PV O&M business. This subsidiary covers technical, commercial and remote monitoring aspects, planning, controlling, supply of inspections, maintenance and repairs, as well as back

// I AM REALLY DELIGHTED NOT ONLY BECAUSE OUR AGREEMENT WITH REATILE RENEWABLES FULFILS THAT OBJECTIVE, BUT ALSO BECAUSE THERE IS A CLEAR, BROADER STRATEGIC FIT FOR THE TWO COMPANIES //

office support containing specialists in the areas of PV technology, safety, health and environment, networks and SCADA, grid design and compliance.

“We are pleased that Reatile has taken up a substantial stake in our O&M subsidiary which, during 2020, will increase its South African market share significantly,” said Austin.

This strength of the juwi brand was recognised in September 2019 when the company was labelled as the fourth on a list of the world’s top utility scale solar constructors, compiled by Wiki-solar.org. Ranking was based on cumulative capacity and saw many global companies listed but juwi managing to maintain status.

In South Africa, the company’s influence will surely now boom following the announcement in February from Energy Minister Gwede Mantashe who said that NERSA had approved license for 75 entities to participate in energy production, totalling 42 MW. The majority of applicants are mining houses and

industrial companies, and this will be extremely helpful for taking demand from the Eskom grid.

In February, the World Bank said that off-grid solar systems were helping to bring electricity to people who really need it, especially in subSaharan Africa and Asia.

“The off-grid solar sector has grown rapidly over the past decade and is now a $1.75 billion annual market serving 420 million users, with further growth predicted,” its report stated.

For juwi, in South Africa and globally, there is major potential.

Already proven by its work in Prieska and its recognition as a global industry leader, this is a business that will have an important role to play going forward as South Africa’s energy market changes dramatically.

WWW.JUWI.CO.ZA

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FOSKOR

Employee Wellbeing Top Priority for Foskor PRODUCTION: Timothy Reeder

Foskor is the leading South African supplier of granular fertilisers, the core ingredient in nitrogen, phosphate and potassium fertiliser products (NPKs). Phosphorus is a fundamental component of life and an irreplaceable ingredient in fertiliser and Foskor is recognised not only as a key producer with a solid plan to shore up operations, but also as one of Africa’s top employers.

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INDUSTRY FOCUS: MINING

//

The history of South Africa’s fertiliser industry dates all the way back to 1652, when Dutch settlers are reported to have used manure to maintain the Governor’s Gardens in the Cape, at the time of its foundation as a refreshment outpost.

Small quantities of chemical fertiliser began to be imported at the close of the 19th century, followed closely by the commissioning of the first phosphate plant using animal bones in Durban. Midway through the century, in 1951, Foskor was founded by the Industrial Development Corporation (IDC) to produce phosphates for South Africa’s agricultural sector.

It is the only vertically integrated producer of phosphate ore, phosphoric acid and granular

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fertiliser in South Africa.

Phosphorus is known to be essential for the creation of DNA, cell membranes, and for bone and teeth formation in humans and is one of three elements, alongside nitrogen and potassium, required for commercial fertiliser and mass food production.

SUSTAINABLE DEVELOPMENT The Foskor Group’s core activities are the mining of phosphate rock and the production of phosphoric acid and phosphate-based fertilisers. Foskor’s Mining Division mines and processes phosphate rock concentrate at the phosphate-rich Phalaborwa in South Africa’s Limpopo Province, from two open-cast pits at a rate of over 24 million tons per annum. From here, it is carried by rail to the production facility at Foskor’s Acid Division in

Richards Bay, KwaZulu-Natal.

“From the humble beginnings of a single mining operation, Foskor has grown into one of the world’s largest and most dynamic phosphate and phosphoric acid producers,” the company says. “Strategic expansion took Foskor from basic mining to an holistic operation that extracts ore which is then produced into and products that are used locally and exported around the globe.

“One of the world’s largest producers of phosphate and phosphoric acid, Foskor is proudly South African, but internationally focused.”

Foskor’s Acid Division exports phosphoric acid to India, Japan, Bangladesh, the Netherlands, Mexico and Dubai, and has been a prime focus of the company’s sustainable investment approach. Phosphoric

HOW IT ALL STARTED Coalvest started as a coal trading company which was formed in 2007 as a subsidiary of the Grainvest Group, a privately owned and managed commodities trading and investment group, based and operating in Africa.

GROUP COMMODITY SERVICE STRUCTURE TRADING

LOGISTICS

FINANCE

RETAIL

INVESTMENTS

Fuel Fast Moving Consumer Goods

R

VALUE PROPOSITION OUR MISSION We aim to become the leading supplier and service provider of choice and to create a memorable experience for our customers when doing business with the group.

LOOKING AHEAD To become an intergrated, global investment services business.

+27(0)12 482 6600 | info@clvgroup.co.za | www.clvgroup.co.za Physical Address: Stonehouse, 510 Makou Street, Monument Park Ext 2, Pretoria, Gauteng, RSA

INDUSTRY FOCUS: MINING

acid has agricultural, industrial, medical and retail applications, and its end products include catalysts, rust proofing materials, chemical reagents, latex and animal feeds, among others.

As is the case with any company that employs heavy industrial machinery, Foskor is required regularly to make significant upgrades to remain competitive, as Shivaji Gadhave, GM Strategy, Projects & New Business Development, told Enterprise Africa.

“We have some plant that is around 40 years old,” he outlined, “so we now have the requirement to replace a portion of the plant in the Acid Division in Richards Bay. “We have had the funding approved from our shareholder, the IDC, for the acid equipment

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and we have initiated the project.

What the project is going to do is improve the utilisation of plant, the reliability of the plant and the efficiency of the plant – currently because of the age of the plant, we are struggling with these parameters,” Gadhave explained.

“New plant will mean sustainability and improved efficiency and that improves cost of production,” he added. Foskor has invested considerable resources in addressing legacy issues in its Acid Division, correcting the perception that it is an environmentally hazardous operation.

“Foskor recognises that sustainable development links opportunity with responsibility,” it drives home. “Sustainable development raises competitiveness

and allows for more informed production, taking damage to the environment into consideration.”

Foskor chairperson Bobby Godsell reported in August that the

// FROM THE HUMBLE BEGINNINGS OF A SINGLE MINING OPERATION, FOSKOR HAS GROWN INTO ONE OF THE WORLD’S LARGEST AND MOST DYNAMIC PHOSPHATE AND PHOSPHORIC ACID PRODUCERS //

Transformation by Performance Services: •

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Steel fabrication (including mechanical steel structure, conveyor structure, tanks, chutes, furnaces manufacture and pipe work).

Skilled & Unskilled Labour Hire MQA Registered Assessor & Moderator General Mining & Industrial Supplier Plant Maintenance and Shutdown Crusher Maintenance Plant Erections & Projects Hydraulic and Water Pump Repairs Pneumatic and Hydraulic Cylinder Repairs Undercarriage and all parts on earth moving equipment TMM & Office Air conditioner Maintenance Refrigerator Maintenance Plant Electrical Maintenance & Services Cleaning Services

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INDUSTRY FOCUS: MINING

// FOSKOR IS PROUDLY SOUTH AFRICAN, BUT INTERNATIONALLY FOCUSED // company’s board was conducting a comprehensive review of the group’s operations, and is on the cusp of developing a sustainability plan to determine its future movements.

Having recorded losses in consecutive years, Godsell said the review would investigate why Foskor “has underperformed in production, why it has underperformed in costs and why it has underperformed in profitably selling its products, both domestically and abroad.”

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IDC CEO TP Nchocho indicated that this could translate to securing a strategic equity partner or technical partner for Foskor, noting that leadership changes had been made at both the board and executive levels in an effort to turn around the company and improve labour relations.

TOP EMPLOYER It may seem an obvious statement, but employee satisfaction is supremely important to an organisation; it is central to productivity and leads to superior quality of performance and growing profits.

It has been identified as a particularly pertinent issue in subSaharan Africa, the only region in the

world where the youth population continues to grow. “It is also a region where ensuring that young people find rewarding employment is a major policy concern,” adds a report from Andy McKay, Andy Newell and Cinzia Rienzo entitled ‘Job satisfaction among young workers in Eastern and Southern Africa’.

“226 million 15 to 24 year olds lived in this region in 2015, and this is the only world region where the youth population is growing and projected to continue to grow for much of this century,” it goes on.

Top Employers Institute is a global organisation dedicated to accelerating the impact of people strategies to enrich the world of work, certifying organisations

FOSKOR

in single countries, regionally and globally. The cutting-edge international research conducted by the Top Employers Institute each year determines whether an organisation meets the required standard of HR excellence for certification as a Top Employer.

A record 230 organisations registered to take part in this year’s programme, with 210 organisations spanning 32 African countries and 23 industry sectors certified throughout the evening.

96 organisations will now carry the South African certification, while 114 Top Employers from 31 other African territories will carry their country specific certification. Top Employers Institute also recognised

17 continental Top Employers who have achieved certification in four or more countries.

“Our comprehensive independent research revealed that Foskor provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation,” read the company’s sparkling review at the 2020 iteration of the awards. “It has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees.”

Billy Elliott, Top Employers Institute Regional Manager: Africa said: “The Top Employers Institute is not just about certifying Africa’s Top Employers.” It is a testament

to employers and an important quality metric that enables them to position their brands more effectively in the attraction, retention, and engagement of top talent.

“We have seen a progression of HR in Africa over the last few years, and it is our role to empower and advance people strategies across the world. We are driven not just to certify but to benchmark and connect outstanding employers around the world,” Elliott finished.

WWW.FOSKOR.CO.ZA

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EXHIBITION CALENDAR

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

THE PROPERTY SHOW MAR 21 | CAPE TOWN The Property Show, organised by Private Property, is the ideal platform for anyone looking to further their property journey whether it’s buying, selling, renting or investing.

The show brings together the biggest real estate brands under one roof including financial service providers, estate agents, developers, conveyancers and additional services. Our educational theatres are packed with practical property advice and knowledge to help educate thousands of visitors.

DECOREX DURBAN MAR 19 | DURBAN It’s almost time for Africa’s biggest décor, design and lifestyle exhibition to kick off, with the first instalment, Decorex Durban, taking place at the Durban Exhibition Centre from 19-22 March 2020.

This prestigious showcase of the latest products and trends from top designers, décor professionals and industry experts is always hotly anticipated – and the 2020 instalment will be even bigger and better than before!

The overarching theme for Decorex Africa 2020 is ‘Lifestyle by Design’, an embracive approach that allows you to design your life the way you want it to be. Lifestyle by Design is about freedom,

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reclaiming your time and doing things you like. This is essentially illustrated through design and looking to future trends when curating your own personal space.

ENERGY EFFICIENCY WORLD AFRICA MAR 26 | JOHANNESBURG With increasing electricity prices and supply concerns, property owners, architects and large energy users, including mines, commercial property developers, industrial manufacturers and retailers are continuously looking to source cost-effective and sustainable energy efficient and lighting solutions.

Their most urgent need right now is to identify and evaluate the appropriate energy efficient and lighting solutions to help them achieve their business objectives and limit the vulnerability of being reliant on the grid. The 6th annual Energy Efficiency Show Africa (co- located with The Lighting Show Africa) caters to this need. Dedicated to showcasing the latest services and innovations to improve energy efficiency and lighting in Africa, this is the industry’s go-to event.

The Energy Efficiency Show Africa featuring The Lighting Show Africa, is the leading marketplace and ideas exchange platform for this market as well as for related industries – all hungry for innovative and efficient solutions.

GAPP PRINT EXPO JOHANNESBURG EXPO CENTRE MAR 08 - 11 WEALTH SUMMIT GALLAGHER CONVENTION CENTRE MAR 14 WORLD FOOTBALL SUMMIT AFRICA DURBAN ICC MAR 17 - 18 DECOREX DURBAN DURBAN ICC MAR 19 - 22 THE PROPERTY SHOW CAPE TOWN ICC MAR 21 -22 ENERGY EFFICIENCY WORLD AFRICA SANDTON CONVENTION CENTRE MAR 26 - 27