Enterprise Africa April 2024

EDITOR Joe Forshaw joe@enterprise-africa.net

SENIOR PROJECT MANAGER Sam Hendricks sam@enterprise-africa.net

SENIOR PROJECT MANAGER James Davey jamesd@enterprise-africa.net

PROJECT MANAGER Eleanor Sarbutt-King eleanor@enterprise-africa.net

PROJECT MANAGER Jamie Waters jamie@enterprise-africa.net

PROJECT MANAGER Chris Bolderstone chris@enterprise-africa.net

SALES MANAGER Tommy Atkinson tommy@enterprise-africa.net

LEAD DESIGNER Aaron Protheroe aaron@enterprise-africa.net

ACCOUNT MANAGER Isabel Murphy isabel@enterprise-africa.net

CONTRIBUTOR Manelesi Dumasi

CONTRIBUTOR Timothy Reeder

CONTRIBUTOR Benjamin Southwold

CONTRIBUTOR William Denstone

Positioning South Africa on the world stage is no easy feat, but three of this month’s feature companies have managed to do so through determination, innovation, and long-term planning. For these companies, there is no short-termism – they all believe in the country, and they have put investments in place to ensure that the eyes of the world look to South Africa, and the customers they serve remember that the country can deliver so much.

In Franschhoek, at the much-loved Boekenhoutskloof winery is expanding its footprint, buying up new sites and planting out new varietals to continue broadening its portfolio. The Chocolate Block – its signature wine – is popular around the world, going into more than 60 global markets and selling at a premium. Few others in the country can boast such success and Director Marc Kent puts it down to an unwavering focus on quality production.

Providence Hotels has operations around the world but is focused on the South African hospitality market with local industry veteran Neil Hughes driving success. He is promoting a third-party management structure for independent hotel owners, taking the stress and challenges out of hospitality operations, allowing operators to realise the true value of their assets. Not yet a popular model in the country, the team is busy educating the SA market on the major benefits that come from a team of highly experienced professionals taking care of daily operations.

Golden Arrow Bus Services provides commuter transport in Cape Town, but this forward-thinking organisation is ahead of the curve. The company is busy testing modern electric buses to reduced emissions and improve passenger experience. Longer-term, this innovation will also provide cost savings in maintenance and fuel.

These companies are paving the way for their industries in the future. They could easily carry on as normal and claim the rewards but instead they are looking further down the line and trying the encourage change. Now, it’s more important than ever to be ambitious and flexible, and there’s no doubt that our featured companies will reap the benefits.

Tell us how your company is future proofing and prepping for change. We’re always online at LinkedIn.

Joe

6

BOEKENHOUTSKLOOF

New Growth to Fuel Ongoing Success of Globally Renowned SA Winery

PROVIDENCE HOTELS

Supporting Hospitality with Full-Service Experience

BIDTRAVEL

Tourism Rebounds While BidTravel Focuses on the Details

GOLDEN ARROW BUS SERVICES

Sparking a Revolution in Public Transport

SOUTHEY CONTRACTING

Holistic, Integrated Growth Strategy Targets Increased Market Share

QUICKMART

Quickmart Aims for Kenyan Industry Top Spot

BOEKENHOUTSKLOOF

New Growth to Fuel Ongoing Success of Globally Renowned SA Winery

PRODUCTION: Jamie Waters

“The quality lies in the second half of the bottle,” insists Marc Kent, Technical Director at Boekenhoutskloof Winery. The award-winning business is home to the supremely popular Chocolate Block, a wine that continues to fly the flag for SA wine across international markets. Kent tells Enterprise Africa more about the journey from 6000 bottles in the beginning to more than six million bottles today.

Marc Kent, Technical Director

//When Marc Kent, Technical Director at Boekenhoutskloof Winery, started his three-decade long career in South Africa’s wine industry, he had no idea where the grapes of the Western Cape would take him.

Boekenhoutskloof is a multi-property award-winning winemaking business located across Swartland, Stellenbosch, Franschhoek and Hermanus.

Sky high ambitions saw Kent aim to become a pilot. He was selected to join an exclusive training program with the South African Air Force, completing his national service before setting sights on Europe. “I was waiting tables at a restaurant outside of Cape Town and I began to realise a passion for wine,” he tells Enterprise Africa. “I knew nothing about the industry. I am originally from the southern Natal coast – beer and whisky country. However, I managed to sell more

Chardonnay than any other waiter in the country, and the family that owned the business – the Finlaysons – invited me to the vineyard. I had never been to a vineyard before and I was blown away – that is where it all started.”

This happy accident was complemented by Kent’s hard work and entrepreneurial spirit. The Finlaysons offered him a chance to pour at a wine show and loved the work ethic. They encouraged him to join the industry officially, and he enrolled at Elsenburg Agricultural College.

“I had no idea what that was about, but I started in what was quite an exciting time in 1994,” he remembers. “During my undergrad study, I had the opportunity to become an apprenticeship at La Motte in Franschhoek. Fortuitously, some friends had purchased Boekenhoutskloof which had been a vineyard since 1776, and they approached Jacques Borman – the winemaker at La Motte

– to consult for them. He could not but he gave them my details. I started in December 1994 under Tim Rands, and we have still have the seven original shareholders in the business today. It’s been an incredible journey.”

PREMIUM BRANDS

Kent oversees all operations of the business from land management and vineyard care through to marketing and sales. He has developed a deep understanding of the industry, the agriculture, and the region. His focus is on high quality, premium wines – showcasing South Africa as an alternative to the traditional markets of the world that are well-known and well-sipped by international buyers in developed markets.

Today, Boekenhoutskloof owns four important South African brands: Boekenhoutskloof, The Wolftrap, Porcupine Ridge, and The Chocolate Block. A Syrah specialist, the company takes carefully selected grapes from various sites to blend unique wines packed with flavour.

The business is anchored by the Chocolate Block, a full-bodied red with grapes from one of the world’s best Syrah vineyards. This wine is hugely popular in export markets, particularly the UK. Exports, says Kent, is where the business will continue to grow, putting South Africa on the map.

“We are a premium wine business, all going into glass with distribution in 60 markets worldwide.

// WE WILL ALWAYS CONTINUE LOOKING AFTER CHOCOLATE BLOCK AS IT IS WITHOUT DOUBT THE MOST SUCCESSFUL PREMIUM BRAND OUT OF SOUTH AFRICA

“We will always continue looking after Chocolate Block as it is without doubt the most successful premium brand out of South Africa. How we continue to grow that and support it, with sufficient fruit and facilities, to maintain overall quality will be our focus.”

With good coverage in markets around the world, Kent believes instead of aggressively tapping new regions, the way forward is to further build brand recognition, positioning the company – particularly Chocolate Block – as a first-class offering.

“We are strong in grocers – that is how we grew the business - but that is not really our channel, and we are going more premium now - high end retail and direct to consumer.

“It’s one of the few South African brands that is no longer seen as South African – it’s international and people buy into that.”

GROWING BUSINESS

One of the fundamental steps in developing and nurturing a premium brand out of South Africa is by dreaming big, as Kent has always done. He cites Penfolds of Australia and Jackson Family Wines of California as premium brands that have created mutually beneficial relationships with their region and with global markets.

“South Africa lacks large operations,” he says. “It’s nice as an industry for South Africa to be recognised as a consistent, reliable producer of quality wine but it remains

off the radar for many wine drinkers. It’s not the nation of choice for wine drinkers in the States or Canada or elsewhere. They simply don’t buy into the SA proposition, they have little understanding of Africa, and we have been stagnant for nearly 15 years in the US market with little or no growth.”

By bringing a brand like the Chocolate Block to the market, Boekenhoutskloof is demonstrating exactly what South Africa is capable of at the top end, and this opens doors for all in the industry.

“We think if you’re making good or great wine, we think the market is big enough for everyone. Our focus is looking at competitors abroad. South Africa is heavily dependent on the UK market, good or bad, as well as the

Inside Boekenhoutskloof Barrel Maturation Cellar

INDUSTRY FOCUS: WINE

Dutch, German, and Belgium markets.

“I admire the biggest businesses in America or Australia because they have successfully presented their amazing products to the world, even at the premium end. We lack that. We do have some amazing wine producers who wave the flag for the country, but we

don’t have a business that says: ‘here is SA, we are meaningful on global scale’. We hope to move in that direction.”

EXPANSION PLANS

To further support the company’s international ambition, and solidify position in markets around the world as

the go-to South African premium brand, Kent and team have recently purchased new land to plant out. New varietals will grow but the tried and tested Syrah vines will also take some of the new capacity.

“Chocolate Block’s current release is 1.2 million bottles with a weighted average selling price of around €10. It’s a nice business that has grown well. The market still has an appetite for more product but it’s not Coca Cola – we are governed by agricultural cycles. Our investment in the vineyards is to support the market appetite for the product,” he says.

The business is busy building a new head office in Stellenbosch to centralise administrative duties across agriculture and sales, and Kent is actively looking for more sites across Swartland where Boekenhoutskloof already has 250 hectares under vine. Despite living in Portugal, he is in the field in the

Outside Boekenhoutskloof Barrel Maturation Cellar

Western Cape once a month ensuring his fixation on quality is deep-rooted.

“Product development is ongoing,” he says. “We are in four different regions – the Hemel en Arden Valley, which is the area with the biggest return per 750ml bottle, home of Chardonnay and Pinot Noir in South Africa. That has never really been our thing as we have been mostly a Syrah and Pinotage business, mostly in Swartland and Stellenbosch and Franschhoek, but we are now in Pinot and Chardonnay after buying up land in 2016. Those young vineyards are coming into production for a brand that is doing particularly well called Cap Maritime. We are also expecting to build a new facility near Walker Bay, outside Hermanus, towards the end of the year, when we

get the planning authorisations.”

The Western Cape’s soil is often described second to none. The different microclimates, the hot sun, the cold rain, the mountainous ups and downs, and a history of winemaking that goes back more than three and a half centuries make for a region that has all the options for a modern wine offering. The varied and diverse profiles across the region are home to a range of topographies including sandstone, granite, and shale. The cool breezes coming in from the Atlantic and Indian oceans contribute to consistent and high-quality vine performance.

“Our challenge, with our diverse offering – albeit premium – is how we package Boekenhoutskloof and its brands for a global market,” Kent states.

To generate a larger local market for Boekenhoutskloof products, Kent has long been a supporter of local tourism. He says that collaboration across the wider hospitality industry is a must for those around wine centres in South Africa, and has done much to bring people into and around the region.

“I have been very involved in gastro tourism in Franschhoek and I was, for many years, the chairman of a local vineyards organisation, integral in merging our various tourism groups into one – the Franschhoek Wine Valley & Tourism Association

It is now a hugely successful model which is much copied and envied worldwide. Franschhoek is an incredible destination and we were able to get all the tourism players all under one

INDUSTRY FOCUS: WINE

umbrella organisation,” he explains.

“Our industry has nominal support from government. A lot of the countries we compete with have big, generic bodies with huge support from the EU or individual governments. As such, we must do all we can to showcase South Africa as a destination and attract wine tourism.”

QUALITY FOCUSED

Being nimble is a key ingredient in the Boekenhoutskloof recipe for success. The company is very different from the early days when Kent arrived with nothing but a fridge and a hi-fi. Adapting to market conditions, embracing change, and planning for the long-term have helped the company to navigate macro issues that

have derailed some in the industry.

“The challenges in South Africa are well documented but not unique - corruption, no power etc. South Africa is an incredible country with very resilient people,” he says. “It is a country of opportunity if you are entrepreneurial. I was involved for many years in a successful vineyard in the south if France, but the bureaucracy is tough. Even in Portugal, it’s challenging. In SA, there’s a lot more flexibility and if you are agile things can happen quickly. That’s not specific to wine – developed nations, especially in Europe can be quite bureaucratic.”

By adopting a fluid approach to each season, this pioneering business has been able to grow significantly. More land, more markets, and –

importantly – more customers are the result of an unerring focus on quality produce. Kent is confident that you cannot grow from nothing to worldwide brand without always searching for superiority.

“We have always been quality focused and we have never made decisions based on spreadsheets,” he smiles. “Our selection process is critical across all levels and when we

// IN SA, THERE’S A LOT MORE FLEXIBILITY AND IF YOU ARE AGILE THINGS CAN HAPPEN QUICKLY //

blend a wine we don’t say ‘we need 70 bottles’. We look at what we have on the table and decide what will line up best in the bottle. We don’t compromise or cut corners. Follow the quality and the margin will come – that is how we run our wine business.”

By following this strategy, Boekenhoutskloof has registered itself

// FOLLOW THE QUALITY AND THE MARGIN WILL COME – THAT IS HOW WE RUN OUR WINE BUSINESS

as a top tier wine business – desired by retailers around the world. And this doesn’t come from expensive marketing campaigns or constant drives for industry accolades. Word of mouth is a powerful tool.

“Our route to market has been quite different,” admits Kent. “When I started more than 25 years ago, it was a time of shows and competitions, but we didn’t go down that route. We have always said that quality lies in the second half of the bottle, and we managed to grow from 6000 bottles in 1996 to six or seven million bottles today with really good third-party endorsement. We get great advocacy, and we overdeliver in the bottle.”

The sweet success of the Chocolate Block continues to showcase South

Africa and Boekenhoutskloof at international level. Flying high above the vineyards of the Western Cape, soaring beyond the peaks of the Hottentots-Holland Mountains, as home to a top premium brand exported out of the country, this individual and unique wine business continues to create opportunities and demonstrate what is possible.

“The wine industry has been very good to me,” concludes Kent, as he plans for the next 30 years of Boekenhoutskloof brand dominance.

PROVIDENCE HOTELS

Supporting Hospitality with Full-Service Experience

PRODUCTION: Eleanor Sarbutt-King

Supporting independent hotels to achieve the highest possible asset value and sustainable profitbility while helping to create memorable guest experiences that last forever, the innovative approach to independent hotel management from Providence Hotels is yielding great results. MD Neil Hughes talks to Enterprise Africa about celebrating brand individuality and championing South Africa as a premium destination of choice for international travellers.

//International tourism has returned to South African shores with a bang. After the decimation of the industry through 2020 and the Covid-19 pandemic, there was major concern over this valuable industry’s long-term viability in the country, contributing 3.7% of GDP in 2019. However, the forecast from

World Travel and Tourism Council’s Economic Impact Report (EIR) shows the South African Travel & Tourism sector is forecasted to grow at an average rate of 7.6% annually over the next decade, significantly outstripping the 1.8% projected growth rate of the country’s overall economy.

But South African resilience is world

renowned, and while the country’s tourism sector may have been down for three years, it certainly wasn’t out. In 2023, after a long stint of subdued and inconsistent arrival trends and lots of pressure on local businesses trying to reboot, the industry recorded fantastic statistics reinforcing the enduring appeal of the rainbow nation as a

INDUSTRY FOCUS: PROPERTY

bucket list destination for many around the world. Foreign arrivals (mainly from the UK, Germany, Netherlands and the USA) increased 46.5% from June 2022 to June 2023, and by the end of 2023 more than 7.6 million tourists arrived in the country. Particular highlights included strong numbers from the US markets, a market targeted in a global campaign from the Tourism Business Council and bolstered by renewed airline confidence into destination South Africa

On the ground, the industry is, thankfully, moving on very well and is embracing the changes that have become part of the new global travel and tourism normal.

This beloved tourism and hospitality sector is the space in which Providence Hotels operates. An independent full-service hotel management company working across South Africa, the UK, and other

markets, Providence Hotels can ignite value and potential within a hotel and serves as the catalyst for owners of independent hotels to ignite growth and development to the next level with a reliable and trusted international professional hospitality partner.

GROWING PIPELINE

“There are a lot of good things happening here in South Africa right now. International hotel groups are finding more and more reason to develop and build their brands across the continent, starting in South Africa, and Providence Hotels has a strong relationship with many of the top global hotel groups to manage their brands under third party agreements on behalf of the owners in order to assist with this growth.” MD Neil Hughes tells Enterprise Africa. “For any hotel business in our position, it is always

good to be able to connect with hotel owners that need immediate assistance. Maybe they have been trading for a while and maybe their teams have reached their glass ceiling and are looking to evolve their businesses to take the next step in their commercial, structural and market understanding – that is where we come in.”

Providence Hotels can offer fullservice solutions to any size hotel or alternatively merely strategic advice and support, operational oversight and guidance, revenue optimisation consultation or digital and online support to name a few. Independent hotel owners and hotel groups have entrusted Providence Hotels to come along side them and take their hand in driving growth and development within their businesses as well as their professional teams and structures.

“We position ourselves alongside hotel professional teams and together with the owners to help them re-establish their company visions and objectives and understand why they need to adopt, adapt and change,” smiles Hughes. “Change is the enemy for a lot of people, and breaking down these walls so that people can understand their WHY is essential. Evolving a professional team and owner mindset is indeed chellenging but our performance and results, over time and through consistency, brings comfort, trust and profitability to all stakeholders.”

Hotel operations are complex. Whether a large international brand active across sub-Saharan Africa or individual lodge in the Cape winelands, the long list of inputs required for a hotel to run successfully is difficult to achieve independently and without constructive professional support.

Providence Hotels is home to a range of skills and expertise thriving on solving problems for owners, franchisees, and delivering regional solutions for international brands which is often missing – especially when operating together with

Neil Hughes, Managing Director (SA)

larger brands and properties with zero to few boots on the ground.

“We can work together with big brands and their globally paced systems under a third-party management structure and have very good relationships with global brands to operate selected brands within their brand architecture. What this means is that the owner would franchise a selected international brand and then contract Providence Hotels to operate the brand on their behalf if they don’t have the experience or ability to do so,” says Hughes, adding that the client then gets the best of both worlds – an on-the-ground local operator that understands the local dynamics and nuances of the market, alongside a recognised global brand and their global distribution systems and loyalty programs.

“Sometimes, the big brands don’t bring that local knowledge, and they don’t yet have a full understanding of local dynamics, and they sometimes

send their expats in to deal with these things – who also don’t understand the local culture and often fall short of the mark. We saw this very clearly during the COVID pandemic where local owners were pulling on their international operators and very often their executives could not answer because they either didn’t understand or were not in situe to assist. A very big benefit of going the third party management route is that owners get the distribution and global loyalty reach and power from the big brand that is then combined with a company like Providence Hotels as the local operator who brings advice, understanding and real-time tactical support because they are on the ground - a very powerful combination indeed!”

These collaborations are not understood well enough in South Africa and are essentially all about growing hotel values and client operations within the South African hospitality industry. Tourism brings

in a vital economic contribution of foreign currency into the local economy and this very often converts into more substantial Foreign Direct Investment due to international visitors falling in love with the country.

Providence Hotels has hotels and consulting agreements across South Africa and also the UK and is actively looking to grow its portfolio of hotels under management agreements aggressively going forward in both regions. “I’ve been in the hotel and hospitality business for more than 25 years now and there is nothing more exciting to me than seeing the sector thrive through active collaborations. There is a place in the sun for everyone and we are stronger together,” adds Hughes. “The hotel sector has become a less desirable industry to work in and we need to change that perception in the minds of the local youth and working class and bring back the appeal and glamour of the industry to the next generation. The ‘old guard’ will only

Banhoek Lodge, Stellenbosch

INDUSTRY FOCUS: PROPERTY

// BEING IN THE INDEPENDENT SPACE

FOCUSES US ON BEING MORE DYNAMIC AND MORE AGILE THAN OUR COMPETITORS

be around for so long so we need to all become advocates in our circles of influence to do more to elevate hospitality back into something special and a vocation worth pursuing.”

DYNAMIC & AGILE

By trusting an outsourced hotel management company to operate a hotel, owners can take advantage of multiple services but with one single contact and relationship. It’s a more streamlined and simple approach in a sea of complexity, and Hughes highlights the dynamic nature of the hospitality business and why it is so absolutely important to surround yourself and your teams

with partners, like Providence Hotels, that understand your values and objectives and how to lift them up while driving revenue and cost optimisation initiatives across the business.

“Being in the independent space focuses us on being more dynamic and more agile than our competitors,” he says. “Big international hotel brands cannot necessarily adapt fast enough to the nuanced market challenges that we have in South Africa and in the rest of the African continent, and the ones that chose to partner with local operators, albeit through collaborations or partnerships, were the ones that were able to get through their local challenges relatively better and often more unscathed. While the pandemic is thankfully a distant memory, it has been somewhat of a ‘wake up call’ for many and is still something we have to consider and pay attention to. The market has changed drastically over the last three years and client booking patterns have evolved because of it with shorter lead times and more experiential services being sought after. Habits have changed and we have been very fortunate to have partners here in South

Africa and in the UK who have adapted and assisted us in evolving very quickly.”

Even so, selling the third party management concept in South Africa remains challenging as a consistently weak economic backdrop has depleted investment ability for many entrepreneurs and has forced independent hotel owners to, in most cases to their businesses detriment, restrict their executives teams access to out-sourced advise or management assistance and oversight. With all the benefits available, many still remain cautious about the cost of the out-sourced and services that are still relatively new and misunderstood within South Africa.

“We help to unscramble the eggs and realign independent teams to face their new and more profitable ‘true north’. We bring fresh ideas and focus for hotel owners around understanding of what their assets should be achieving. This year, we are definitely developing further on our third-party relationships with the global brands and their potential benefits together with independent hotels in South Africa.

“There are not many established

Franschhoek Country House & Villas, Franschhoek

professional independent hotel operators in South Africa or Africa for that matter,” Hughes admits. “It is a first-world model, and the third-party model is not massively understood in here. Sometimes, owners see it only as another layer of cost and they don’t often see the many benefits attached to the cost and knowledge now at their disposal. There is a very clear lack of understanding and we want to educate our market on what this business model can bring to the table and assist larger independent hotels to better succeed in the South African context.”

GREAT SECTOR FOR WORK

Hughes remains an advocate for the tourism industry, even after many “hard knocks”.

Having started his career with Protea Hotels more than 25 years

ago, now part of international brand Marriott, he grew within the company and succeeded in several operational roles before becoming one of the youngest hotel GMs in the group at the time. After this, commercial and hotel development was sought after and he moved into the group’s development arm, helping to identify new growth prospects and improve brand recognition across new and the then current clientele base.

After three years in development with Protea Hotels he joined Radisson Hotels in a business development position to assist in driving the Radisson brands growth into the African continent together with a very dynamic group of African developers. Joining Providence Hotels in 2019 to head the commercial growth of the business and assist in preparing

the South African managenment company for aggressive management agreement awareness and growth across the independent hotel space.

“We are now signing management agreements in South Africa and regionally and also actively looking for more,” Hughes says.

As the company grows alongside the return of meaningful tourism in South Africa, Hughes is keen to promote the industry as one of prosperity and opportunity adding that he also sits on the Board of Federation of Hospitality Associations of SA (FEDHASA) – the most significant and oldest hospitality association in SA – and amplifies that it is up to those of us that are in industry leadership positions to prepare and equip the next generation of hospitality professionals.

This was recently made very

INDUSTRY FOCUS: PROPERTY

apparent by the very successful launch and execution of the inaugural FEDHASA Hospitality Awards where the industry leaders acknowledged the current and next generation for their contributions to the industry.

Hospitality offers relatively low barriers to entry, can create jobs quickly, give sustainable career opportunities, and can lead to stronger earning potential for those willing to actively dedicate their time and efforts to becoming industry professionals. “This is something that FEDHASA and all of its sitting board members are very passionate about and we are looking for meaningful government and private sector participation in this regard to bolster this growth in awareness so that our guests and visitors remain well taken care of for many more years to come,” comments Hughes.

“The development of our local hospitality culture is so important. We need to elevate people and elevate the sector. It is a great sector to work in. As a vocation, it has been fantastic

for me and to me, and it can also be for others willing to work for it. We want people to think positively about hospitality as a careerof choice and I want future graduates and young professionals to experience the industry as I have as intensely interesting, dynamic and worth while. I have personally worked very hard to get where I am but this industry has allowed me to travel the world and for this I will be eternaly greatful. We need to elevate the industry’s persona and ‘make it sexy again’ for the next generation to start contributing to it in a meaningful way, and that will take time and effort in South Africa.”

FEDHASA has partnered with Insignis Solutions and they are championing active private participation in equipping the next group of hospitality professionals through on-the-job and in situe education after achieving certain theoretical hospitality achievements.

“In South Africa the hospitality sector in terms of hotels and restaurants

is a very underrated industry. It is not always a sought-after career with the working professionals coming through the ranks these days but it has always been a no-brainer for me. I have been in the industry my whole career and I have learned how a hotel functions and how its people come together and also how to navigate a way to the top of a commercial structure and into an executive position. The most challenging part of what I do now, apart from leading an amazing professional team at Providence Hotels in South Africa, is educating independent hotel owners and commercial property investors and REIT’s on why it is important to involve the right partners and professionals that can elevate their business and transcend the understanding of their people on the ground.” Hughes points out.

Key in this professional offering is engaging within and being a part of the South African supply value chain. Providence has a strong network of suppliers that deliver a range of services

Villa Marine, Pringle Bay - The Residence

// MAKING SURE CUSTOMER EXPERIENCES ARE UNIQUE AND EXCEPTIONAL, OFFER VALUE FOR MONEY, ARE AUTHENTIC AND MAINTAIN OUR OWN BRAND AND THE SOUTH AFRICA BRAND ONLINE IS IMPORTANT //

all designed to make the life of a hotel owner easier and the operation of the business more valuable.

“They have to be on the ground. They need to have at least an understanding of what is going on at the level we do,” explains Hughes. “We are a relatively small business and I expect all of our partners, especially in the digital realm, to understand the needs and requirements of our clientele and adapt accordingly. We have to be responsive, and I must be able to pick up the phone and speak to my partners, not a chatbot! Everyone sells a good story about their service levels but whether you can deliver on that makes the difference in the hospitality world and it’s important

to remain relational,” Hughes adds.

Involving a local supply chain also forms a key part of the Providence Hotels strategy to support job creation and sustainability in South Africa. “We will always look for local first,” states Hughes. “However, we are not blind to the fact that there are very good international products out there. We are therefore always on the lookout for product affiliations and digital solutions both local and international so we are not closed to those opportunities. In hospitality, things have to happen quickly, and we must solve the problems of our clients and our sector without delay and therefore reliable local suppliers are most essential.”

With new airline routes being

signed, for travellers looking to experience something spectacular and different, South Africa has it all. Doing so in comfort, style and without stress, Providence Hotels and its hotels are here to serve. It’s an exciting time for the business as tourism is expected to reach full recovery (measured against 2019) through 2024 and will continue to grow thereafter.

“Making sure customer experiences are unique and exceptional, offer value for money, are authentic and maintain our own brand and the South Africa brand online is important. Government and the private sector have a huge amount of work to do in reaching new heights together but once international guests have visited South Africa they most often than not are converted into brand ambassadors for life and ensuring these emotional connections will result in lucrative repeat business and FDI,” concludes Hughes.

San Lameer Championship Golf Course

BIDTRAVEL

Tourism Rebounds While BidTravel

Focuses on the Details

PRODUCTION: Jamie Waters

BidTravel’s wide range of services that span the travel and tourism industry are supported by an ambitious and forward-thinking South African industry. By investing in people and adding new skills for a constantly changing market, BidTravel aims to make the most of South Africa by delivering truly unforgettable experiences.

INDUSTRY FOCUS: TRAVEL & TOURISM

//As the saying goes, time is a healer. Perfectly demonstrated across South Africa’s travel and tourism industry, the effect of patience, perseverance, and persistence continues to be positive for those that were able to manage through the problematic pandemic.

The challenge was set. When lockdown came in March 2020, travel businesses must survive until restrictions were lifted and operations could resume. Many failed, and many longstanding companies were lost. But those that stuck the course and organised effectively are still here. Today, the picture is very different, and gone is the talk of survival. Now, thriving and growing is on the agenda again, and time – alongside good management – has helped to restore ambition in South Africa’s tourism space.

Lidia Folli, CEO at BidTravel, told Enterprise Africa in 2022 that the pandemic had hurt the business, but

it had made changes to navigate the tough environment. “I don’t think we will get back to where we were 100% in this calendar year, but I think we will be at 80% by the end of the year,” she said

In 2023, she was proved right and, with restrictions lifted, the industry grew. “We have certainly seen travellers returning in their droves,” she told Enterprise Africa.

BidTravel is a travel management organisation providing services to corporate and leisure travellers across a range of brands that span different parts of the travel, tourism, and transport industries.

Now, Folli keeps the struggles of the 2020 epoch in mind while looking forward to how the industry can continue to regenerate in what is a changed but opportunity-laden environment.

Within BidTravel, historic brands provide a range of services. The portfolio includes Rennies BCD

Travel, Rennies Travel Namibia, CWT, Harvey Worldwide Travel, Bush Breaks, Weekend Breaks, New Frontiers Tours, Cruises International, Scintilla, WorldTravel, and more.

From here, the company can organise business travel, corporate breaks, family vacations (into and out of South Africa), camping, and much more. All of the ancillary services can be organised, and the company can delivery a turnkey solution for anyone travelling for any reason.

UNDERSTANDING THE MARKET

Folli is keen to cover every eventuality and has been researching some of the fundamentals behind the industry –who is coming, why are they coming, what are their concerns, how can BidTravel and South Africa provide for them, and what is better about tourism in SA compared with other options.

Firstly, she picks up on the continued strength of demand

in traditionally strong markets.

“Higher international travel rates were seen in the UK and Germany and this tells me that targeting our marketing more in their direction would simply make sense.”

Compared to North America, where domestic travel is mostly the preferred option, thanks to smaller

// EXPERTS PREDICT THAT THERE WILL ALSO BE SIGNIFICANT LEANINGS TOWARDS TRAVEL EXPERIENCES THAT EMBRACE CULTURE, NATURE AND SEEKING BUCKET

vacation allowances, UK and German travellers – especially younger people that fall into ‘millennial’ or ‘gen-z’ categories – are keen on adventurous tourism and exploration.

“Experts predict that there will also be significant leanings towards travel experiences that embrace culture, nature and seeking bucket list destinations. That sounds like a recipe for a trip to South Africa to me!” says Folli.

Of course, South Africa has challenges to address when attracting international tourists from any region – this was the case pre-pandemic – but technology is playing its part here.

“Domestically, our lack of infrastructure within cities has largely been mopped up by e-haling services which allow our gen-z travellers easy access through our major cities. I think the challenge still remains though how Gen Z travellers are able to transit within our rural areas where many may not

own vehicles or driver’s licenses because they have no need to own or have access to cars when living in the cities.”

Even for domestic travellers, moving across SA’s large expanses, with road infrastructure mixed in quality, BidTravel has solutions. In fact, the business is keen on a new brand of tourism which sees digital capability abandoned to allow for a truer relaxation. This, she says, is certainly where South Africa can play.

“South Africa offers the perfect peace that is found in bush-breaks, in our mountain escapes, our beach escapes, and even in the beauty of our semi-dessert regions… Simply getting as far away as possible from a world that is ruled by technology, populated by crowded urban areas and riddled with stress.”

Focus on the small things, looking at customer demographics, searching for gaps in the market, and – importantly – understanding

INDUSTRY FOCUS: TRAVEL & TOURISM

customer behaviour is where BidTravel and its brands excel. By finding solutions to real problems and not pushing a one-size-fits-all approach, the company is helping to create meaningful experiences and memories, and this is where word-of-mouth, reputational marketing begins.

GROWING, OVERCOMING

Folli is clear that, as South Africa’s ambition to be a global tourism destination for both business and leisure grows, there are issues to overcome, but the country without doubt has the ability to deliver magical tourism offerings that are simply unavailable elsewhere.

“All in all, I do believe that, with some work on a few of the

challenges we face as a country not quite as advanced in certain aspects, we definitely do have what it takes to have strong appeal for both millennial and gen-z generations, and travel and tourism in SA faces a bright future!”

2023 was proof that the industry and the country had recovered, and time had indeed helped heal some of the pandemics deep wounds.

The industry demonstrated an almost 52% increase in activity compared to 2022. By the end of 2023, South Africa welcomed around eight million foreign tourists, including well over a million from Europe. The African continent was a strong source of tourist arrivals, and for this reason industry commentators are encouraged that the country is on track to meet

its goal of an average of 10 million arrivals by the end of March 2024.

“These latest figures underscore South Africa’s appeal as a sought-after leisure and business events destination. Africa as a source market continues to dominate in terms of arrivals and therefore solidified its position as a key contributor to our tourism industry,” said Tourism Minister, Patricia de Lille.

“The continued strength of established markets like the UK, US, and Germany cannot be overstated. While numerous factors can be attributed to this, direct flights have bolstered these numbers, reflecting not only the ease of connectivity but also the deep-rooted travel relationships South Africa enjoys with these nations.

“The re-opening of the Chinese

Lidia de Olim Folli, CEO

DECIDING WHERE TO STAY IS HARD

market and the initiation of direct flight routes have catalysed a resurgence in arrivals from this region, highlighting the vast potential and significance of this market to South African tourism,” she added.

Of course, Folli was also excited by the strength of the numbers. She is confident about the way forward and

has so far proved to be right about the future growth of the industry. Her one warning is that the industry must continue to invest in talent to ensure businesses like BidTravel and its brands can rollout the level of services required to support ongoing development.

“Generally speaking, the forecast for travel and tourism in South Africa is a glowing one, the beginning of which we are seeing right with bumper year-end tourism figures being reported in most of our tourism hotspots. One thing I have learned however, as one with much experience in the industry, is never to become complacent and rest on one’s laurels. The COVID pandemic was a hard lesson learned on how rapidly fortunes can change and we in travel and tourism must, while the going is good, continue to train, nurture and reward our people so that they

in turn will strive to make SA one of the best destinations in the world.

“Secondly, as an industry we need to spend that money we are earning from these bumpers seasons to continually strive to offer a better service, better experiences, better food, better venues etc to be the world’s number one,” she says.

As more time passes, more guests will arrive, bringing with them more money to flood into South Africa’s economy. For BidTravel, facilitating this needed inflow is part of the service, and it will continue to grow alongside the critical tourism industry.

GOLDEN ARROW BUS SERVICES

Sparking a Revolution in Public Transport

PRODUCTION: Jamie Waters

The future is now for Golden Arrow Bus Services as it plans an overhaul of its fleet to include electric buses. The idea is to introduce many new units by the end of 2026 and initiate a charging infrastructure that pulls in renewable energy from multiple sources, bolstering environmental credentials.

INDUSTRY FOCUS: TRAVEL

//In January, one of South Africa’s most famous exports famously said that the country is not ready for electric cars. Elon Musk highlighted multiple factors around the SA industry that made Tesla unwilling to launch here just yet. His main gripe was import duties and affordability, but many point to Eskom woes and loadshedding as a material factor.

However, while Tesla waits, others are moving. There is a need to decarbonise and transport is a key industry sector on this journey. Currently, South Africa’s 12 million cars continue with internal combustion engine power. The transition to EV has been slower here compared to Europe and China. Quality of roads, availability of power, lack of local manufacture, and prohibitive cost have all factored into an insignificant

rollout. But for the wider transportation sector, progress is underway.

In the mining industry, electric (and hydrogen) powered heavy trucks have been utilised; on the rails, electric trains are in use; and in public transport, electric makes a lot of sense.

“Around 31% of our total costs relate to fuel,” says Francois Meyer, CEO of Golden Arrow Bus Services (GABS), the Cape Town provider of commuter and community transportation services.

By changing the fleet to electric buses, the company expects to improve efficiency, cost, reliability, and environmental credentials. Following Russia’s invasion of Ukraine, fuel prices have been in a constant state of flux globally. No markets have been safe, and even traditionally strong supply chains have been disrupted. South Africa has been no exception and

rising diesel prices encouraged GABS to accelerate its move to electric.

In 2023, the company received its first electric bus from MAN Truck & Bus, the German manufacturer of which GABS requested a model suitable for the South African market more than a year ago. Currently, the Lion’s Explorer E electric bus is being tested on routes around Cape Town, but Meyer and team are extremely confident.

“There is not a route that the buses can’t complete or hill they can’t climb,” he said

POWERFUL INNOVATION

GABS has a history of investing to stay at the industry’s cutting edge. In Cape Town, few others can match the ambition of the company when it comes to innovation and technology.

According to Meyer, the company

© MAN Truck & Bus

has coughed up over R3 billion in the last 25 years to bring more than 1000 new buses to the fleet.

The new Lion’s Explorer E electric bus has already been tested over more than 100,000 km in South Africa, and its 66-seat capacity is perfect for the local market where journeys between stops are further than other markets in Europe. Equally in urban environments, the bus is much more energy efficient on a stop-start programme.

Adaptation for the local market was vital for GABS, and MAN was also keen to learn more about how it could modify products to bring its innovation to regions with different requirements. “We’re relying fully on electric vehicles in the European city bus segment with the Lion’s City E – and we’re doing the

GOLDEN ARROW BUS SERVICES

same around the world with the Lion’s Chassis E. Our responsibility towards sustainable mobility doesn’t stop at the borders of Europe,” said MAN Truck & Bus CEO, Alexander Vlaskamp.

MD of MAN Truck & Bus South Africa, Jan Aichinger, added: “Some of the roads here are just sand tracks, and after heavy rain there can be huge puddles. That’s why the buses must be capable on all terrains and must never ground out on the rough roads.”

High floors, step access, four 80 kWh battery packs located between the axles underside, 3+2 seating arrangement ensuring seats for all on longer journeys, and fully equipped with all of the modern applications to keep travellers comfortable make the Lion’s City E

perfect for the South African market.

“It was developed specially for use here,” said Head of Bus at MAN Truck & Bus, Barbaros Oktay. “The new model was also entirely built in South Africa. That meant that we could guarantee that the e-bus would perfectly meet the needs of local public transport companies and yet simultaneously integrate into existing processes as well as possible. If this is a success, electromobility in South Africa will really gather speed – we’re convinced of that.”

Aichinger and GABS are happy with the progress so far. Testing has been successful and capacity of 300-350km per day has been achieved, charging the batteries through the night.

“There have been no noteworthy

© MAN Truck & Bus

INDUSTRY FOCUS: TRAVEL

MODERN ELECTROMOBILITY SOLUTION ONE STOP CLOSER

In Cape Town, MAN Truck & Bus is busy testing its latest electromobility innovation alongside Golden Arrow Bus Services as the company continues with a drive around long-term sustainability through locally designed, locally destined products.

MAN Truck & Bus South Africa is partnering with Golden Arrow Bus Services (GABS) to develop the Lion’s Explorer E, a 66-seat passenger bus, powered by batteries, to transport and connect people around Cape Town.

Designed by a local engineering team, and assembled in-country at MAN’s SA facilities, the Lion’s Explorer E is tailored to African conditions.

Globally, MAN is aiming for lower emissions and innovative sustainability, already the market leader in battery powered heavy transport.

Currently, MAN have a bus in operation with GABS and a second at a testing facility in Turkey.

“So far, we are happy with testing. A very important part of our product development process is ensuring that what we design is suitable for the customer,” says MD Jan Aichinger. “Feedback from the customer is extremely good. It is performing better than we envisaged. It shows that the vehicle is really good and that we have chosen the right partner.”

With 70-80% of the population dependent on public transport, commuter buses make up one of the largest market segments in SA. With the zero emission, fully

issues so far – just one pleasant surprise: the Lion’s Explorer E uses less energy than we had expected,” said Aichinger. “Diesel is significantly more expensive than electricity here. That means that the switch to eBuses will pay off within ten years.”

Meyer agreed adding the decision to switch to electric was primarily a commercial decision.

COMMERCIAL CHOICE

Another positive for the transition is that electric buses require less engine maintenance compared to traditional fossil fuelled ancestors, meaning cost savings through labour

electric Lion’s Explorer E, MAN has combined a chassis and electric motor system from Europe with a design perfected for SA. Batteries sit between the axles, under the floor rather than atop the roof; the ride is higher, and the buses are all seater to accommodate for longer distances between stops.

“We have tested the vehicle from Scandinavia to Switzerland to southern Spain. We have seen altitude, cold, and heat. But it is the road conditions here that are completely different. We are on time and on schedule, and everything we are experiencing now will go back into the project and enhance the final product,” says Aichinger, adding that the ride of the bus is smoother and quieter than previous combustion engine models.

By 2025, the companies expect to have enough test data to begin a large rollout of vehicles bringing a custom-made SA product into operation, mitigating significant carbon emissions every year. MAN, a Level 4 BBBEE company, is firm believer in the local market.

“We are a market leader and we want to keep it that way, and that is why we are investing in electromobility and strong partnerships,” says Aichinger.

hours. GABS has trained artisans already, capable of maintaining the new e-buses, and the company will continue to deliver new skills, alongside manufacturers, for itself and the wider industry as the rollout continues.

“We’re doing all we can to ensure that the new eBus is as well-received in South Africa as our Lion’s City E is in Europe, with more than 1,000 units produced already,” said Oktay.

At the same time, GABS has been testing the BYD K9 bus from China. This model initially had a 37-seat capacity but was expanded by the manufacturer to meet the local needs of GABS and now boasts 65 seats

and strong performance statistics.

Thankfully, GABS is not only investing in electric buses at the front, operational end of the business. Behind the scenes, at its depot in Cape Town, a new solar PV installation covers the rooftop. Car parking spaces have also been replaced with solar car ports, and the company has plans to expand this rollout dramatically, eventually building out all of its 22 hectares with renewable generating capacity that can feed into its e-bus infrastructure. Currently, the business generates just over 2MW at peak capacity. There are also plans to organise wheeling arrangements with other

#SimplyMyTruck

Always ready for every task and every requirement. No matter how big or small.

www.mantruckandbus.co.za

renewable energy generators, bringing the GABS carbon footprint down dramatically over the next decades.

VERTICAL SOLUTION

Company Engineer, Gideon Neethling told Africa Sideways: “We will cover as much as we can with solar and we will look to partner with people with

// WE ARE PUSHING AHEAD. BY THE END OF 2025, WE NEED 60 BUSES ON THE ROAD IN CAPE TOWN. BY THE END OF 2026, WE NEED 120

wheeling agreements for wind and solar. We travel the same 1.3 million km every single week of the year and this is the new way to go. It’s exciting, it’s new, it’s the right thing to do, and it has financial benefits.

“We are pushing ahead. By the end of 2025, we need 60 buses on the road in Cape Town. By the end of 2026, we need 120. Then it is big decision time and we look at how we go forward. If I had to bet on it, I would expect that there will be many electric buses in GABS in the next five years.”

Lower emissions, lower cost, quieter, more comfortable, and with opportunities for skills development, the switch to electric – globally and locally – is underway and will not stop. Those that embrace are those that thrive. When Tesla does arrive, a local solutions provider will need to

be sought to ensure a comprehensive offering. Thankfully, the buses are ahead of the game and, in some cases, creating the road forward.

For GABS, the mission and vision has always been around people. These investments are just that – endeavours to further enrich the lives of the community it serves, both in terms of quality and environmental consciousness.

“We operate safe, reliable passenger transport services designed to meet the needs of our customers and by applying sound business principles to create a secure future for the company and its people.”

SOUTHEY CONTRACTING

Holistic, Integrated Growth Strategy Targets Increased Market Share

PRODUCTION: Jamie Waters

Southey Contracting is a longstanding partner to South Africa’s industrial and engineering industries. Providing scaffolding and access solutions, insulation, corrosion protection, fireproofing, asbestos removal, high pressure cleaning and more, the company has become a go-to partner for the petrochemical, mining, energy, and other industries. New Divisional Managing Director in Gauteng, Viloshini Pillay, is tasked with building up market share. She tells Enterprise Africa more about growth through a fusion of technology and people.

INDUSTRY FOCUS: INDUSTRIAL & ENGINEERING

//In 2016, Southey Contracting – one of the country’s leading multi-disciplinary industrial engineering firms – was on a strong growth path, achieving results by investing in its people. This strategy positioned Southey as a true frontrunner because of a universal focus on quality.

Divisional Managing Director at the time, John Humby, told Enterprise Africa: “The group prides itself on service delivery, fantastic safety records and superior training of staff.”

But the pandemic of 2020 and the resultant slowdown in site activity put a damper on aspirations. With several projects being cancelled or put on hold, and the industry was forced to consolidate.

Southey Contracting has a long and enduring history, and effective

Viloshini Pillay, Divisional Director

// WE LOOK FOR MORE INNOVATIVE WAYS OF DOING THINGS AND WE TRY AND LOOK AT WHAT OUR CUSTOMER NEEDS AND HOW BEST TO DELIVER THAT //

competitive position,” says Pillay. “We are certainly looking to increase our market share, and we are exploring various means of doing so, but the industry we play in is quite challenging.

“We have a very robust approach to solving our client’s needs,” she adds. “The Southey management structure allows us the freedom to exercise our entrepreneurial creativity and encourages us to expand our service offerings through technological advancements and diversification. We are continuously looking for more innovative ways of doing things as we strive to exceed our customer needs. That is the key to our business – a satisfied customer.”

management saw the business navigate through a challenging period with relative success. Today, the company employs people across the country and provides access solutions and scaffolding, cold and hot insulation, corrosion protection and fireproofing, high pressure cleaning and asbestos removal services within several industries.

As of December 2023, Viloshini Pillay took over the reins as Divisional Managing Director. She looks after operations in Gauteng, with experienced industry veteran Rob Ross taking care of Cape Town and KZN through the Coastal Division.

For both, the target is clear for the short and medium term: Growth through increased market share.

“We have a comprehensive offering and that places us in a very strong

EXPERIENCE & RANGE

Southey Contracting is operational across multiple industry sectors. Important contributors are petrochemical, power generation, mining, and paper and pulp industries. The company intends to increase its footprint within these industries as well as diversify into other related industries.

The company is part of the wider Southey Holdings Group which boasts operations across sub-Saharan Africa. At the very deepest level, quality and safety are the key drivers of the business. Whether it’s high atop scaffolding towers, inside boilers, or covering large industrial infrastructure with corrosion protection, Southey has the capability. These tasks are not ‘standard industrial processes’ and cannot be carried out by anyone.

Strict health and safety regulations are in place, and the industry has stringent compliance requirements to ensure the job is done safely and to the highest quality standards.

With a limited number of companies able to handle the stringent regulations, Southey sees the potential to recover any market share that might have been lost over the past four years.

“We would like to see our industry become more technologically advanced,” says Pillay. “We still operate in an industry that is not at cutting edge when it comes to technology. We are proponents of technology doing things more efficiently, especially in the construction industry. In terms of the contracting we do, the way in which we become more profitable is to do things more efficiently and effectively. If we can find solutions to

do that, we can provide a win-win for us and the client. This is a view around how to achieve growth and expanded market share that Rob and I share.

“I am passionate about growing the business,” she continues, “and that means increasing our market share, bringing on new clients, and diversifying our service offerings. Anyone in my position should want to ensure job security for their people. That is my goal at this stage and, ultimately, that is achieved by increasing our shareholders’ returns. It is a tough industry at the moment so growth and security are number one priorities.”

PEOPLE POWERED

To deliver complex industrial engineering solutions to clients at international quality standards, people development and upskilling

PKF Durban

is essential. Pillay is a seasoned qualified chartered accountant having worked in the industry since for 18 years, with operational experience on national mega projects.

“I was operationally responsible for insulation and scaffolding contracts at the Medupi Power Station. That was my introduction to operations. I’ve never been a typical accountant so I jumped at the opportunity and have not looked back since. That experience cemented my preference for being operationally involved. The project exposure I got was invaluable,” she recalls.

When she joined Southey in 2018, she headed up business development which included overseeing the company’s integrated management systems (IMS), B-BBEE compliance, training and development and operational support.

INDUSTRY FOCUS: INDUSTRIAL & ENGINEERING

// ANYONE IN MY POSITION SHOULD WANT TO ENSURE JOB SECURITY FOR THEIR PEOPLE //

“Effective industrial relations is critical to a company’s operational success – being a labour-intensive company and it is key for us to ensure that we maintain well-structured labour systems and processes.

“In my previous role, managing both the IMS and training and development functions,” she says. “I tried to marry those functions and

internally we now have a Continuous Development Programme for our employees. Developmental topics and training material is identified through our IMS statistics and trends as well as external audit findings. We have our own internal trainers and we can provide short educational programmes with the team almost immediately.”

Across Southey Contracting’s core operations such as industrial coatings, scaffolding, asbestos removal, insulation, there is not always easy access to certified, accredited training programmes. “If you need a Quantity Surveyor, you can pick out of the universities and other higher education institutions. Scaffolding, painting, and insulation – it’s a different ballgame.

“Typically, it is the responsibility

of the private sector to find ways of addressing skills shortages within its industry, and in most instances upskilling employees from an unskilled base,” says Pillay. “The training and development is generally modular and there are several international qualifications which are not accredited in South Africa by the relevant training authorities. This means that we are unable to get crucial SETA funding to carry out the required skills training which in turn severely limits the number of employees that we can train. We need more accredited courses to upskill people, and that is always a challenge.”

Another hurdle faced head on by Southey is maintenance of a sterling B-BBEE certificate. A Level 1 B-BBEE contributor and a company

that continues to invest in people to uplift, Southey Contracting regularly develops future leaders, supporting innovation and entrepreneurialism – a key focus for Southey at group level.

“It is something I am proud of,” says Pillay. “Our equity, management structures, skills development, and community programmes all come together under a strong, integrated BBBEE programme that has seen us successfully retain our Level 1 certification.

“Across all of our Contracting divisions, we carry out a well-structured Supplier Development program. Supplier beneficiaries meeting the required criteria are identified within our existing supply chain. These beneficiaries are then invited to apply

to join the development program. A detailed GAP analysis is undertaken with each beneficiary and key interventions are identified to assist in ensuring that these small businesses are equipped with the necessary tools and resources to improve their sustainability.”

ALWAYS CHALLENGING

While Southey has been successful navigating the challenges it encounters, there are underlying macro issues that the company cannot escape and so Pillay and team are always working hard to steer the business in the right direction.

“It’s the construction industry – it’s challenging overall,” says Pillay. “But our team is resilient and dedicated.”

Digitising is the obvious solution

for many industries looking to improve efficiencies, but it’s not that simple for Southey Contracting. The heavily regulated industries in which the company plays values safety above all, and introducing digital solutions takes longer.

For Pillay, the goal is clear: Grasp every opportunity, and claim market share to become the undisputed industry leader.

“Our major focal point right now is growing our footprint. We want to grow through innovation, and this remains our main focus,” she concludes.

© Southey Contracting

Quickmart Aims for Kenyan Industry Top Spot

PRODUCTION: James Davey

Growing significantly in the past three years, Quickmart holds the vision of becoming the number one grocery retailer in Kenya. Recent successes include new stores opening with great feedback, and Deputy CEO Jacques Dome is optimistic about the company’s potential.

//In Kenya, where 60% of goods are still purchased through small informal stores, growth opportunities are large for quality focused players. The country’s population of more than 53 million people is well educated and open to innovation.

Quickmart, a supermarket chain opened by Duncan Kinuthia in 2006, saw the potential. Modern, bright, open stores, all over the country, serviced by respected brands, and home to an exceptional customer service experience, delight customers with every visit.

Offering something different, but something very Kenyan, growth has been phenomenal for Quickmart, which now controls meaningful market share.

The company’s mission is to provide fresh produce in a way that is as easy as possible for customers. Today, a store network of more than 60 locations, staffed by 7000 people, are helping Quickmart to deliver

on its promise after a merger with Tumaini Supermarket in 2020.

“We had exceptional growth in 2020, 2021, and 2022, opening 10 new stores per year. 30 stores in three years is quite an achievement for a supermarket company of our size,” says Deputy CEO, Jacques Dome. “We got exposure in the Financial Times because of our success and we were labelled as the 11th fastest growing company in Africa, across all sectors.”

Dome, a retail industry veteran, joined Quickmart three years ago to help the company achieve its ambitions of becoming a national player. He has enjoyed a career across multiple geographies and various sectors, but always focused on retail with specific experience in GIB Group, Belgium; Kingfisher Group, UK; and Carrefour, Dubai and Athens.

“There is still so much potential in Kenya for further growth. We have 60 supermarkets and we believe we can get to more than 100. We are not

considering going beyond Kenya at this stage because we believe there is so much growth here.”

HOMEGROWN

Several local players and a handful of international organisations are present in the Kenyan grocery retail market, but Quickmart has managed to create industry leadership status for itself by remaining by Kenyans for Kenyans. Stores have a complete range of products, complete with onsite bakeries, delis, butcheries, and more.

“Our difference is that we are a homegrown company that understands Kenya very well,” says Dome, the only expat in the entire company. “We have great expertise both in terms of knowledge of consumers and knowledge of development opportunity. Competitors that have failed in Kenya fail for two main reasons,” he assesses. “Firstly, they are foreign entrants and they have preconceived ideas about what a Kenyan consumer

Jacques Dome, Deputy CEO

needs, but it is usually ranges and concepts that are not suitable here. Secondly, local competitors have failed with corporate governance. Retail seems a simple business but you have to control it very well. There are many opportunities to generate cash quickly or develop too quickly, or use cash for other reasons, and we have not been tempted by this.”

Quickmart is well organised, works within international quality standards, and works closely with suppliers to bring attractive offers and pricing to customers. At the same time, growth nodes in the country are identified and acted on by the senior team – not because they are typical high traffic high street locations, but

QUALITY CRAFTSMANSHIP

because the local knowledge within the business understands market needs.

“A third of the openings we’ve had in the past three years were sites that we had the opportunity to take from competitors that had failed in the Kenyan market. Two thirds were a result of organic growth and came because we had tremendous support from our founders,” says Dome, adding that the founder of Quickmart, Duncan Kinuthia, develops real estate assets, including shopping centres branded ‘Basic’, that house Quickmart stores.

SUCCESSFUL OPENINGS

New branches around Nairobi, Mombasa, and Nakuru have bolstered the Quickmart portfolio and Dome

is excited about the appetite from consumers as customer numbers continue to boom. This, he says, shows a desire from the company’s target consumer group for a better experience than they have had previously and an alignment from the company in how it services customers.

“We have had really successful openings and all have been generally performing beyond our expectations.

“We opened our most recent new store just six weeks ago in Narok. It is a city we felt was a little under subscribed. We have a pipeline of five or six more for the rest of this year. We are pursuing a few in Nairobi and in Nakuru where we are underrepresented today. We have one store there, a

TURN-KEY Retail, Commercial or Residential project… look no further

WORLD CLASS RETAIL SPACES

We focus on quality craftsmanship and attention to detail. We ensure that every aspect of your project is executed to the highest standards, delivering timely and exceptional results that exceed client expectation.

Customer satisfaction is guaranteed!

Ready to get the job done?

At Illumine International ltd, we specialize in design and construction of retail, commercial and residential projects, offering an end-to-end solution to bring your wildest vision to life. We provide a full range of comprehensive services: Conceptual Development, Architectural and Interior Design, Project Management and Construction. Our team of experts will take your dream from the design stage to construction; to the functionality and aesthetics that reflect your personality and style. info@illumineinternationalltd.co.ke

Schedule a consultation and take the first step towards creating your dream.

We have a reputation of creating world class retail spaces that enhance brand value and business performance.

BRAND-LED COMMERCIAL DESIGN

We specialize in brand-led commercial design and have the capacity and experience to deliver medium and mega projects.

INDUSTRY FOCUS: RETAIL

small supermarket, and so we would like a much larger store there.”

Dome is also keen on expansion further across the Rift Valley region, confident in the appeal of the company’s offering of ‘Fresh and Easy’.

“Our main competitor has more than 100 stores – a homegrown, local chain – and we both are searching for organic opportunities. There is

//

also an international chain – more focussed on hypermarkets in shopping malls – with more than 20 stores. We believe we are well positioned for leadership in the future,” he says.

“Just over a year ago, we commissioned Boston Consulting Group to study market potential. They researched, city by city, the population, perspective, and wealth, as well as currently level of competition. That identified pockets of opportunity and potential very clearly, even factoring in the development of competitors.

With that, we are confident that our operation can support 100 – 120 stores easily, even going further, to the northern part of the country.”

Currently, smaller competitors, operating one or two stores, dominate

rural towns while larger companies are present in the metropolitan centres. Few can boast the quality location and instore excellence of Quickmart, which modernises its portfolio regularly.

“We have stores that are more than 15 years old and we have an ongoing programme around renovation. Every year we reassess our priorities and identify five or six stores that require modernisation,” says Dome, adding that local partners are utilised to ensure the look and feel of Quickmart stores remains on brand.

IMPORTANT SUPPLY CHAIN

In its bid to become the largest retailer in Kenya, Quickmart has developed

Continues on page 46

INDUSTRY FOCUS: RETAIL

Continued from page 44

partnerships and collaborations with the biggest and best brands in the country, while also offering up a range of international products to ensure customers receive the very best. The finest beverages come from Kenya Wine Agencies and the sweetest sugar comes from Transmara, while a whole host of other agreements are in place with more than 14,000 farmers, keeping Quickmart fully stocked.

But supply chain logistics is not traditional. Instead, Quickmart opts for a decentralised approach, using its larger stores as regional hubs. For Dome, this helps manage cost while providing efficiency in delivery.

“The supply chain is very important,” he emphasises. “We have made an original choice by not

following the temptation and setting up a large central warehouse. Of course, there are positives with that strategy, but we wanted to be agile and not put too much investment into a single piece of infrastructure. We have been able to manage the supply chain which is mostly direct deliveries by suppliers to stores. We only handle logistics centrally with a few big, international suppliers because they are able to handle the cost.”

Suppliers deliver direct to store, and a Quickmart fleet of small trucks then completes circulation where required. “It’s a hybrid model but has been successful and cost effective,” says Dome.

This strategy again highlights the deep insight that Quickmart has of its market. Where other large international chains have entered Kenya

without a robust market knowledge and failed, Quickmart has always demonstrated a connection with local people, understanding what is required in store, at what price point.

The emerging digital retail experience in Africa is an opportunity for growth for the company, and here the supply chain is again engaged in the best way to reach customers. It’s different to other big markets like Nigeria or South Africa, and those that come with a one-size fits all approach only get so far. For Quickmart, a fast jump into e-commerce did not make sense as it continued rollout of its bricks and mortar. Instead, Dome and CEO Peter Kang’iri are looking to innovate and develop an online system that Kenyans need and want rather than copying what is successful elsewhere.

“There is definitely a big

opportunity that we have not seized yet,” he says, adding that deliveries and an online store must be carefully planned in line with the local supply chain.

“We started a partnership with Glovo – the international delivery firm - last year and we now have 24 stores operating through Glovo, serving customers digitally. We have a basic website but it is on the cards for us to invest in a step change there and look at a mobile app. We do take a lot of orders through WhatsApp or phone calls, and we do organise delivery to homes in this way. Currently, only less than 2% of our sales is online and we think the potential is there to reach 5%.”

CHANGING BEHAVIOUR

Dome is keen to progress the company’s digital capabilities as a behavioural change is already underway. Because of macroeconomic conditions present across East Africa, consumers are changing the way they shop. While perhaps a temporary adjustment, anything Quickmart can do to support its customers is helpful.

“Taxes and inflation have taken a toll on consumer buying power,” Dome admits. “We have seen the changing behaviour of consumers adjusting to that, coming more often, buying smaller baskets. Even so, the trends remain very good in terms of growth in number of customers.

“M-Pesa has now become the main payment method at close to 60% while cash only represents about a third of payments,” he says.

He adds that many customers comment on the convenience of the Quickmart offering, choosing the supermarket because of its welcoming environment, air-conditioned spaces, loaded with choices beyond the informal alternatives.

“When you enter any Quickmart store, you will see our branded red tuk-tuk where we display promotions. Then we have the fresh section where all the fruit and veg is displayed. It’s

distinctive for Quickmart and we were the first to really push the fresh concept with this level of visibility.

“The atmosphere in the stores makes them feel modern,” he says. “We have strong branding, strong colours, and we have high-energy customer service. Our motto is ‘Fresh and Easy’. We certainly have fresh, and easy is all about our customer service. We have many staff on the ground they offer a very good service to customers. In a Quickmart store you certainly get help – people will pack and take groceries to the car. It’s a very easy in and out experience. Our strategy is not to be inside shopping malls for that reason. We want to offer free parking, and an easy experience.”

Dome is excited about the way forward for Quickmart. With strong momentum behind the company, and

a growing economy, a fresh and easy retail experience, that brings the best of Kenya’s produce to customers, is a tried and tested recipe for success.

“It’s a wonderful country to live and work in,” smiles Dome. “People are friendly, open minded, and great to work with. Quickmart has been a great success story, and this has been a fantastic time for me for the past three years.”

Quickmart and Dome offer all customers the invitation to continue walking alongside the company as it continues to journey to even greater heights.

KEY UPCOMING EVENTS ACROSS THE REGION

IMPORTANT EVENTS AND EXHIBITIONS TAKING PLACE ACROSS SUB-SAHARAN AFRICA, GIVING BRANDS A PLATFORM TO TELL THEIR STORY.

MAY 13

AFRICA’S TRAVEL INDABA 2024

MAY 13-16 | DURBAN

Africa’s Travel Indaba is one of the largest tourism marketing events on the African calendar and one of the top three ‘must visit’ events of its kind on the global calendar.

It showcases the widest variety of Africa’s best tourism products and attracts international buyers and media from across the world. Africa’s Travel Indaba is owned by South African Tourism and organised by Synergy Business Events (Pty) Ltd.

Africa’s Travel Indaba has won the awards for Africa’s best travel and tourism show. This award was presented by the Association of World Travel Awards.

MAY 21

MACHINE TOOLS AFRICA

MAY 21-24 | JOHANNESBURG

Africa’s biggest machine tools exhibition and a shoawcase of everything that twists, turns, rotates, cuts, forms, bends or shapes, Machine Tools Africa 2024 is designed to bring to life the very latest global machine tools technology and to highlight the importance of local suppliers and their international manufacturing partners.

The exhibition is seen as an important and relevant platform where buyers and sellers can meet face-to-face in a relaxed informal environment. At this year’s show, visitors can expect to see a wide range of products, from machinery and tooling to control systems, robotics, design, accessories and more, and the opportunity to find what they need to take their manufacturing processes to the next level.

MAY 28

ENLIT AFRICA 2024

MAY 28-39 | CAPE TOWN

CAMINEX offers important value to both Zambia and the DRC’s rich mining belts as it is positioned in the heart of these adjoining areas.

Thousands of business decision-makers, purchasing influencers and professionals will use the trade show to network, exchange ideas, share information and develop partnerships

The expo will further benefit from the continued support of Government and leading industry Associations. It is well positioned to stimulate business growth in the region.

MAY 28

MAY 13

MAY 21

MAY 27

MAY 14

JUN 11

CAMINEX KITWE | MAY 28-30

AFRICA TRAVEL INDABA DURBAN | MAY 13-16

MACHINE TOOLS AFRICA JOHANNESBURG | MAY 21-24

WISA DURBAN | MAY 27-29

NAMPO HARVEST DAY BOTHAVILLE | MAY 14-17

SAITEX SANDTON | JUNE 11-13

DESIGNED SOME OF THE DEEPEST MINES. OUR SOLUTIONS ARE SHAPING THE FUTURE OF MINING.

MULTIPLE PROJECTS

DELIVERED WITH MORE THAN 3 MILLION LTI-FREE SHIFTS. SAFETY IS A CORE VALUE.

RANKED AMONG THE TOP INTERNATIONAL CONTRACTORS IN OUR FIELD.

Lima

Montreal Toronto

Santiago

PROCESS EXPERTS IN URANIUM, GOLD, COPPER, PGMS, MANGANESE, BATTERY MINERALS AND OTHER COMMODITIES.

OVER 65-MILLION-PERSON HOURS WORKED ACROSS DRA GLOBAL OPERATIONS AND MAINTENANCE SINCE 2000.

Cape Town Accra

Gabarone

Beijing

Riyadh

Harare

Johannesburg Maputo

8760 YEARS OF DESIGN AND ENGINEERING DRAWING OFFICE EXPERIENCE.

Perth

Brisbane

THE LARGEST MINING AND MINERALS FOCUSSED, ENGINEERING AND PROJECT DELIVERY CONSULTANCY.

OUR DEDICATION TO EXCELLENCE HAS EARNED US GLOBAL RECOGNITION AND TRUST.