Enterprise Africa August 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

August 2021

www.enterprise-africa.net

USN Growth Strategy Gains Big Boost Exclusive interview with USN CEO Albé Geldenhuys ALSO IN THIS ISSUE:

Nestlé South Africa / Aspen Pharmacare / Adumo / Concor

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IMMUNE ZINC & VITAMIN D

1 000 MG VITAMIN C

L-GLUTATHIONE

IMMUNE SUPPORT, ANTIOXIDANT & ALKALISING MINERALS WWW.USN.CO.ZA

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 James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za PROJECT MANAGER Ekwa Bikaka  ekwa@enterprise-africa.co.za PROJECT MANAGER Christina Allcock  christina@enterprise-africa.co.za PROJECT MANAGER Eleanor Sarbutt-King  eleanor@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR

Manelesi Dumasi Karl Pietersen David Napier Timothy Reeder Colin Chinery Benjamin Southwold William Denstone

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South African manufactured Covid vaccines are now flowing and there is optimism in the business community. Lorraine Hill, Group Operating Officer at Aspen Pharmacare tells us that the process is gathering pace as the J&J jab continues to roll out of the company’s Gqeberha plant. “The world has learnt to cope with Covid now; countries are not completely shutting down and it is longer paralysing,” she says.

Thanks to the hope this rollout brings, companies are able to make long-term growth plans around how they can expand and build sustainability into their operations.

Primocane Capital, the exciting agriculture venture of Stanford brothers Derek and Ted, is about to take a big step in its growth plans as it rolls out more blueberry farms powered by hydroponics, ensuring efficiency.

USN and Globepak, leading global sports nutrition brand and manufacturer founded in South Africa, are busy investing in a new manufacturing plant, head office and distribution centre as it looks to capitalise on growth in new markets and expansion of its exciting product range.

Carmien Tea, leading rooibos tea business in the Western Cape, is expanding its range and will be developing its presence in the local market.

CT Aluminium, Cape Town-based manufacture of metal window frames and other structures, is applying the finishing touches to a renewable energy system that will power its plant and bring opportunities for long-term development.

All of these plans would not have been possible without certainty about the future, and encouragement that the tough times arising from the pandemic are, almost, in the past.

Get in touch and tell us more about how your business is now looking to the future, having overcome challenges and drawing up a new strategy. We’re online through LinkedIn.

Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2021

Joe Forshaw EDITOR

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

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6/JAWBONE Riding the Waves Towards a New, Digital Future 14/ULTIMATE SPORTS NUTRITION USN Growth Strategy Gains Big Boost 22/GLOBEPAK Project Siyakhula Propels Globepak 28/NESTLÉ SOUTH AFRICA Utilising the Power of RE 36/CARMIÉN TEA Drinking to the Good Health of SA’s Rooibos Riches 42/PRIMOCANE CAPITAL Blueberry Blueprint Benefits Bottom Line 50/SHOPRITE People Power Gives Shoprite Strength In Adversity 56/ASPEN PHARMACARE Vaccine Manufacture is a Monumental Moment for Africa

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CONTENTS

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62/FIRST EQUITY Gearing Up for Post-Pandemic Take off 66/ADUMO Digital Payment Solutions to Accelerate Growth and Change 70/CONCOR Concor Builds Back and Builds Better 78/CT ALUMINIUM The Essential Elements of a Successful Recovery 84/FLSMIDTH Cleaner, Greener Building Blocks of Life 90/PORTLAND GROUP Portland Remains Rock Solid amid Industry Trials 98/SQUARE KILOMETRE ARRAY (SKA) Extra-terrestrial Questions Require Extraordinary Machines 104/THE BEVERAGE COMPANY Essential Refreshments Keep BevCo Sparkling www.enterprise-africa.net / 5

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FOCUS ON: JAWBONE

RIDING THE WAVES TOWARDS A NEW,

DIGITAL FUTURE WHERE SOME OF THE LARGE MARKETING AGENCIES HAVE BEEN WIPED OUT OR RAGDOLLED

BY THE SMASHING WAVE THAT IS THE COVID-19 PANDEMIC, EXPERT BRAND ACTIVATION BUSINESS JAWBONE HAS ADJUSTED STRATEGY AND IS STANDING STRONG, LOOKING TO THE FUTURE. CEO SVEN REINERTSEN TELLS ENTERPRISE AFRICA ABOUT A ROLLER COASTER YEAR.

The cut off your nose to spite your face scenario plays out in marketing departments all too often.

Times are tough and marketing is quickly chopped. The one part of business strategy that is outwardly focussed on bringing in and maintaining business – driving revenue and building strength – is always the first to be cut.

According to Harvard Business Review, this process is ‘today’s equivalent of bleeding – an old-fashioned but once widespread treatment that actually reduces the patient’s ability to fight disease’.

Unfortunately, marketing is usually slashed because it is effortless – easier than redundancies or downscaling premises.

During the Covid-19 pandemic, many of the large agencies around the world have reported major stress on marketing and advertising budgets, with big-brand budgets under pressure, and knowledge around the future guesswork at best.

But research strongly suggests companies that maintain, or increase, marketing activity during recessionary periods are the those that bounce back strongly.

I HAD TO TASK SOME RISKS, MAKE SOME BOLD CALLS

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In South Africa, the industry has suffered a major downturn in spending. Industry resource MarkLives.com conducted a survey finding 84% of respondents in agreeance that the pandemic is an incredibly serious problem. Almost half of those surveyed believed the pandemic’s impact would last longer than six months, 68% predicted a decrease in spend on events, promotions or activations, while 46% predicted decreased spend on out-of-home (OOH) advertising; 36% predicted declines in print spend and 25% saw decreases on sponsorships. Importantly, almost 70% of the industry reported that their company income would decrease substantially or slightly as a result.

ROGUE WAVE Sven Reinertsen CEO of Jawbone lives by the coast in KZN, and his business has felt the crashing power of the pandemic, like a wave of negativity washing over a very successful business. As one of South Africa’s leading brand activation and experiential marketing companies, Jawbone’s clients were impacted in a major way. As expected, marketing budgets were torn up and the gathering of people was outlawed - the race was on to re-strategize to stay afloat.

“I use the rugby analogy; it’s the Springboks against the All Blacks,” he begins. “We were 45-3 down at half-time and the odds of making the comeback were very slim.

But we had to stay in the game. Get to extra time, score

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points, don’t concede. We had to take some risks, make some bold calls and change our strategy to make positive steps forward, with a focus on attack instead of defence.

Right now, we’re not winning, but we are creating space and opportunities that are changing the game. It’s more like 49-43 and we are still in the game with the clock still ticking. We are one converted try away from taking the lead, and as a winning team we know how to stay ahead and close out a game.”

When South Africa deployed one of the world’s strictest lockdowns in March 2020, the type of event utilised by Jawbone to advertise its’ client’s offerings were immediately halted. Even large-name businesses were ruthless in the way they cancelled events.

One of the country’s largest retailers contracted Jawbone to deliver a stand-out year-end function. With glitz, glam and celebration on the brief, Jawbone planned an energizing gig with a large stage to be claimed by a high-profile rock band.

Just one week before the event, Reinertsen received a Covidforced cancellation call as the retailer prioritised the safety of its employees.

At this point, many in the industry were starting to see a similar pattern.

“The second wave was incoming,” remembers Reinertsen.

“Where a lot of the industry thought that December would realise an uptick, things were still being cancelled, suppliers

FOCUS ON: JAWBONE

were committed to big events, and people were losing money as things got worse. It was a hammer blow for the industry in South Africa.

“We were forced to shift and downsize. I think it’s for the better as Jawbone will be stronger down the line. We have a pipeline and we have clients that we are speaking to. I am now talking to people about how we have changed to be more relevant and we are discussing our growth and survival strategy as one.”

To future proof the business, Jawbone is moving further into the digital arena – a space where it has experience but has never fixated.

Unfortunately, with just over one million people receiving their vaccination in South Africa, the country remains in deep water, recoding more than 5000 new cases of Covid-19 every day consistently in the first half June. Many now fear a climb back up the Alert Level lockdown scale.

“There is still the third wave that most are worried about.

I wish we had a crystal ball,” admits Reinertsen. “It looks like some things may happen but for most events, it doesn’t look good. When things turn back on, we will be able to sell Jawbone’s historic services. We have not completely pivoted, but we need to be relevant. We have to be able to service people’s needs on other platforms and in other ways. There will be a space for experiential marketing down the line but it will be more technology based.”

UNION BLACK At the start of the pandemic, as the impact on events and experiential gatherings became clear, Jawbone transitioned quickly, demonstrating the beauty of a small business decision making speed.

Reinertsen ‘cut fast and deep’ and chose a lean strategy.

Establishing Union Black as a full-service digital marketing agency, with a user-centric and data-influenced approach.

The new entity quickly went about delivering a portfolio of measurable services as a standalone agency while working in partnership with Jawbone, to drive results for brands.

“I realised that Jawbone’s future would be heavily reliant on a digital offering and we needed to merge the online and the offline. Activations and experiences are no longer going to be just physical alone; there will be a digital element to it.

So, it was either outsource and lose control and the ability to execute at a high level and high speed, or set up a digital agency. Union Black is a one-year-old business bursting with creativity and digital solutions, with its own clients, working closely with Jawbone,” explains Reinertsen.

In 2020, Union Black and Jawbone launched the Chinese cell phone brand, TECNO SPAR 5, in South Africa. Part of TRANSSION Holdings (world’s fourth largest cell phone group), TECNO and iTel are making waves in the mid to lower tier smart phone industry in developing markets and, as a result, there are more TRANSSION devices in Africa than any other brand.

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“They have done very well globally,” says Reinertsen. “It was a game changing client. We managed to launch one of their devices last year and we have another three secured for this year, with exciting growth prospects for the future.

“It has helped us play with a global brand, and it has helped us transition into that digital space which includes work with influencers, as well as a range of other digital methods. It’s strategy all the way through to execution.”

This blend of physical services through Jawbone and digital offerings from Union Black have helped both companies to pick up new business, making the most of existing relationships, while others waited to see if and how the tender market would return.

Jawbone and Union Black have collaborated on a research piece for Chester Butcheries, conducting an online audit, physical instore questionnaires as well as geotracking to analyse the movement of people and vehicles.

“As a result of transforming data into insights and validating the various layers of data, we have found a range of solutions that can be implemented tomorrow to high-level brand strategy,” says Reinertsen Jawbone is still active in the shop fitting space, working with a large retail chain, by designing and installing instore concepts for cell phones and new concepts to accelerate the launch of new devices. By adding Union Black to the mix, the 360-service portfolio is complete.

“Cell phones continue to take off in South Africa where there are more cell phones that working toilets – smartphones are the future here. I have been working in this industry for the last 14 years and some of the brands we are launching are now moving into those stores. We are also looking at self-help style kiosks in stores as the future of retail needs to become more digital as humans are replaced by technology in a natural progression,” details Reinertsen.

“A big part of it is research,” he adds. “We’ve realised that a lot of people will claim to do things but they don’t truly understand what they are doing. We have a fulltime researcher at Union Black who has a lot of tools and technology to pull data and intelligence which helps build a profile and design the user experience. At Jawbone previously, we were selling the services that we could deliver.

Now, I am going to clients and asking what their needs are and what problems we can solve for them. We can either deliver ourselves or we will collaborate with our rockstar partners and project manage.”

This allows for the retention of a certain level of control over a project, and a direct communication line with the client. In the past, the outsourcing method employed by the big agencies has left different arms of the project feeling unconnected to the body, and ultimately the vision of the brand.

“We had a seat at the table but we were often told what to do,” remembers Reinertsen. “Now, we realise that we must

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FOCUS ON: JAWBONE

be at the table from the start and have a voice strategically so we understand what the brand is trying to achieve.

“The lockdown has forced our hand. I realised if you’re not playing at the strategic level, you’re not really in the game. We would have to wait for someone else to win the work and wait for them to outsource the work to us. We are now involved from the start and we can do things better and more cost-effectively than most.”

IT WAS A GAME CHANGING CLIENT. WE MANAGED TO LAUNCH ONE OF THEIR DEVICES LAST YEAR AND WE HAVE ANOTHER TWO SECURED FOR THIS YEAR

IF YOU’RE NOT DIGITAL AND YOU CAN’T QUANTIFY WHERE EVERY SINGLE CENT IS SPENT, THEN YOU DON’T REALLY HAVE A PLACE IN THE MARKET

CHANGING TIDE Combine consistently unpredictable economic performance in South Africa pre-Covid, with the lockdowns and delays during the pandemic, and you find a very different market in the post-Covid era. Where every Rand was under the microscope before, every Cent is now forensically examined, with return on investment (ROI) being the singular demand.

“The industry has been shifting for a while,” admits Reinertsen. “We were claiming to be able to measure better than others but it was still hard to measure the physical return accurately. With digital, you know exactly who your consumer is and how they fit into your target market.

That is where the game has changed with influencers and targeted social media. It was a natural progression from the activations space – there was always going to have to be a digital element to it because of its effectiveness, measurability and cost.

“If you’re not digital and you can’t quantify where every single Cent is spent, then you don’t really have a place in the market because everyone needs bang for their buck and everyone is under pressure. There will always still be a place for physical activations but at this stage we can’t plan for an industry that comes with new rules that we don’t know enough about.”

The comprehensive experience across all market sectors was demonstrated recently in Johannesburg when Jawbone and Union Black masterminded the FNB Jo’burg Art Fair. Typically an event attended in big numbers by members of the global art community – an opportunity to view and buy unique African pieces – Covid denied the 2020 crowds the opportunity. Union Black stepped in and moved the entire event online, much to the delight of FNB and buyers and sellers involved.

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I REALISED THAT JAWBONE’S FUTURE WOULD BE HEAVILY RELIANT ON A DIGITAL OFFERING AND WE NEEDED TO MERGE THE ONLINE AND THE OFFLINE “They had confirmation of an art fair that couldn’t take place so we had to build the strategy and build the platform.

We were quoting against other people and we offered better service and a better solution. It was the biggest Teams call I’ve ever been on in my life,” Reinertsen smiles. “They wanted to make sure everything was covered and we wanted to impress them. We hope to do the same again this year. “We uploaded all the art and we had interaction from 71 countries

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around the world. We are connecting African art with the world. We had buyers from the US who could see the art on their mobile device or computer, and we also had a virtual function where you could place the art on the wall in your room to see what it would look like. It was a success as we were able to connect people that would previously have never connected with one another.

“Often, as a small agency, you need someone to give you a chance. It paid off for them and having FNB as a client is a pretty good thing for us,” he adds.

ROUNDHOUSE CUTBACK While Jawbone has navigated its way through the Covid crisis and the reductions in marketing spend, the company has also been reeling after its separation from the Iconic Collective. Back in March 2020, Reinertsen told Enterprise Africa about merging his company into the Iconic Collective – a new type of agency, made up of eight of the country’s best creative businesses.

FOCUS ON: JAWBONE

After only a short time working together, as a combination of various culture clashes as well as the shock to the market from Covid-19, Jawbone and the Iconic Collective parted ways.

“It was essentially eight businesses thrown together.

There was definitely a need for a new style of agency as the old model was and is broken. You get charged too much and you often do not get what you’ve paid for. The thought behind it and the strategy was good. There were synergies and fantastic ideas, but it perhaps happened faster than it should of. I couldn’t risk my future and the future of the business so I left on amicable terms with the plans to continue working together. Then lockdown hit.”

Officially becoming part of the group on 5 December 2019, the relationship was short-lived. Sven Reinertsen moved Jawbone out of the Sandton office and reduced numbers in the company while moving to a project management model and establishing Union Black.

“There was a lot of work lined up, but the lockdowns around the world caused many contracts to be pulled. I was in Dubai with the group in January and we were already seeing projects delayed or cancelled,” he says.

“The journey did not end – and I thought it might – but the plot thickens. It’s looking better than it was 12-months ago, put it that way.

Now working out of KZN, Reinertsen’s commitment to Jawbone sees the company maintaining its country-wide operating status, with a strong future lined up. His own schedule has changed, no longer flying into Johannesburg several times each week, allowing for closer links with external partners. This new project management focus has allowed for a continuation of the high-quality on which the Jawbone brand is built.

“A lot of agencies with massive overheads have either closed down, downsized, or sold out. A lot of what they were doing was outsourced anyway. We are project management and execution specialists and we can still roll out globally. Today, my team was installing two cell phone units, and another four tomorrow. I am in KZN, the units are manufactured in Johannesburg, and the installation is around the country. That outsourced model is something that we are used to and we have been doing it for the last two years.

“We had to go lean, but we have a pipeline for six months which is better than most in the industry,” he says.

Post-Covid, brands are still developing ideas. Local and international companies are still looking to break into the South African market, be it for the first time, or with a new product. Now, Jawbone competes digitally, with brand activations, experiential marketing, and in events. As others have fallen away, victims of the ‘too big to shift’ scenario, opportunities remain for those that truly understand clients needs.

“I am optimistic,” smiles Reinertsen. “Those that can stay alive for the next six months, when things do turn back on, there will be a definite need for their services. We have made it this far and making it over the past 12 months has been the make or break, and there’s not too many people left standing. I’ve had my doubts, and I had people close to me telling me to throw in the towel. Had I listened to them, I’d be in a world of pain.”

Much like Durban’s surfers, Jawbone is comfortable in calm waters as well as in the big swells. 2020 certainly felt more like a thunderstorm and while some found themselves caught crumbling in the rip tide, Reinertsen, Jawbone and Union Black have grasped the opportunities and are now riding the waves. This is a business with more than a decade of experience working alongside world-renowned brands and a new chapter is just beginning.

visit www.jawbone.co.za

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ULTIMATE SPORTS NUTRITION

USN Growth Strategy

Gains Big Boost PRODUCTION: Manelesi Dumasi

USN will continue to grow both at home in South Africa, and in international markets, where its high-quality sports nutrition product portfolio is in demand like never before. After moving into a new HQ in Centurion, USN is positioning itself to take the next step in its innovative growth strategy. www.enterprise-africa.net / 15

INDUSTRY FOCUS: SPORTS

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As one of the truly great South African brands to go international, Ultimate Sports Nutrition (USN) continues to power a generation of athletes and sports enthusiasts with its portfolio of scientifically proven nutrition and wellness products. Now, with more than 20 years of experience, USN is looking to further strengthen the grip it holds over the market both locally and internationally, and always-industrious CEO Albé Geldenhuys continues to search for gains across all verticals.

Already operating across the major markets of the world including the

// OUR CAPACITY HAS GROWN A LOT IN THE LAST TWO YEARS, SO WE ARE EXPANDING OUR FACTORY TO DOUBLE OUR CAPACITY //

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USA, UK, Germany, Slovenia, Russia, Spain, France, Malaysia, the Middle East and more, USN has strategically positioned hubs around the world as it looks to diversify its operations and reduce the risks of being exposed to South Africa alone.

Globally, the sports nutrition market is set to bulge, reaching US$35.4 billion by 2025. As one of the fastest growing sports nutrition brands, USN is ready to pump its market share to new heights as a renewed focus on healthy living sweeps the globe. Protein, creatine, vitamins and capsules, weight control, pre-workout, accessories and much more are manufactured to very detailed recipes much to the delight of clients from all different sporting backgrounds.

Progress for USN starts at home, and in March 2021 the company began working from its new head office in Louwlardia Logistics Park, Gauteng.

By upgrading its space to a brandnew building, and moving office, manufacturing, logistics all under one roof, the company is well-placed to effectively distribute all over the country.

BIGGER, BETTER “A lot of our growth is now being initiated by adversity and challenges,” Geldenhuys tells Enterprise Africa, talking about the challenges faced as a result of the Covid-19 pandemic. “We were forced to take over our own logistics again so that we have more control over our supply chain which meant that our service levels improved significantly. It was all because of adversity during the Covid time. Some of our subcontractors were struggling so we planned our new space to set up for a logistics operation.

We still outsource the function of logistics – we are not experts in logistics and we are the first to admit that – but at least we now have control over the USN supply chain.”

The new custom-designed site covers 14,000m2, over a ten-year lease and offers the company the ability to deliver faster market response and world-class customer service. Great access to the N1 allows for smooth distribution countrywide, as well as quick input from the Port of Durban.

This is important as the company will utilise manufacturing capability in South

ULTIMATE SPORTS NUTRITION

Africa to complement its global output as the push into new markets, and pull from desperate customers, continues.

“We started shipping a lot more products to Russia, the Middle East and the Far East including Malaysia,” says Geldenhuys. “Our capacity has grown significantly in the last two years, so we

are expanding our factory to double our capacity. That is where most of our growth is going to come from.

“Because manufacturing capacity has been a problem during Covid times, we had to think creatively and as result are now manufacturing products in Europe for distribution to countries in

Europe, the Far East and the Middle East. We manufacture in the USA for distribution down to South America.

We are well covered when it comes to dealing with challenges around transport, shipping, and sanctions. We are now in a very good space to enter a period of consistent growth. We no longer have all eggs in one basket and if we are dealing with adversity on one continent, there are two others to support our growth and help the business to help the country.”

Traditionally, products manufactured by USN in South Africa have been made for the local market, but international growth has required a shift in strategy. “Since we started growing in Russia and Malaysia in the last year, the demand has grown so quickly that we could not satisfy the need from the UK alone. We are increasing our capacity in South Africa to meet those demands again,” confirms Geldenhuys.

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INDUSTRY FOCUS: SPORTS

This expansion is very welcome for USN, and the CEO admits that, as bitter lockdowns kicked in around the world and stores were forced to close, hopes for a beefy 2020 were quickly torn.

“We anticipated much lower sales for the UK market for 2020 than what we actually got. We ended up achieving our original targets that were in place before Covid. In the first two or three months, we lost some sales, and it was the

// IT’S ABOUT BEING RELENTLESS DAY IN AND DAY OUT AND EVENTUALLY THINGS WILL START TICKING OVER. IT’S EXTREMELY STRESSFUL, AND IT’S NEVER EASY // 18 / www.enterprise-africa.net

same in SA where we lost around 20% of our sales, but after that it really picked up,” he says.

The reasoning is now all too familiar. Gyms and fitness clubs closed, sporting events on hold, retailers closed or operating at limited capacity, people scared to get out. But naturally, as time passed, a safe approach to reopening was promoted and people were desperate to improve fitness.

“A lot of that has to do with people sitting at home, being bored, eating and drinking whatever, and getting out of routine,” explains Geldenhuys. “A couple of weeks pass, and people start thinking that they are going to go backwards if they carry on. So, they switch and do the exact opposite – go out and buy supplements, train at home, buy meal replacements to stop snacking, and they realise that it’s not all that difficult to train at home and be active.

It is convenient to go to the gym and complete all the exercises, but running, cycling, working out at home is very doable. People realised how easy it is to

stay in shape with less resources.”

USN offers training and eating plans that are made available online for free to complement its product range.

In April, GQ magazine labelled USN’s Blue Lab 100% Whey Premium Protein among the top ten available in the UK market. This product range is at the heart of USN and Geldenhuys is keen to continuously improve on products that have been so important in the company’s development globally.

STRONG RANGE “From a creative point of view, we have put a lot of focus on our successful products and how we can make them even more effective,” he says.

“We are entering more categories; expanding in wellness, growing with multivitamins, we are driving the keto movement where we have some products. At the same time, we are making sure that we maintain our growth in the traditional categories of whey protein powders. Our sales are already 50% up on last year which,

ULTIMATE SPORTS NUTRITION

considering the times, is quite good.”

Whey protein is a rich source of amino acids and is usually a milk-based product used to rebuild, refuel, and grow quickly after exercise. It is the favourite of those looking for muscular hypertrophy (building muscle mass) and can be a great supplement for athletes competing in strength and endurance disciplines. BlueLab 100% Whey is a favourite in the USN portfolio and used by the likes of Rassie van der Dussen, Herschel Jantjies, Talitha van Dyk, Shelby Neves and Ferdinand Omanyala, and stocked in a range of outlets including Dis-Chem.

After dominating the market in

SA, the first push overseas for USN was in the UK in 2009. What prompted Geldenhuys to take on a geography with strong, established competition?

“Complete ignorance,” he laughs.

“I didn’t realise what I was getting into. I thought ‘we’ve been successful, how hard can it be?’ It was very very hard. However, you should never give up and the relentlessness, and the realisation that we are halfway up the mountain, drove us to achieve. We focus on what the consumer wants, quality of products, strong brand, good relationships, and finding retailers to work with in whichever country we are in. It’s about being relentless day in and

day out and eventually things will start ticking over. It’s extremely stressful, and it’s never easy.”

Relationship building has been a vital element of the company’s strategy and by teaming with recognised sports personalities and retailers in the USA, UK, SA and other markets has helped to promote the science-based, high-quality nutritional characteristics of the range, which is now available in 70 countries.

“Even before the Covid outbreak, there were a couple of challenges that we had to consider. Brexit was a contributing factor. When I started in the UK, I had manufacturing partnerships in Belgium because we

PROUD SUPPORTER AND SUPPLIER TO THE USN FAMILY

 011 609 1488  sales@iswshrink.co.za i s w s h r i n k . c o . z a

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INDUSTRY FOCUS: SPORTS

would not have had the capacity in South Africa to ship into the UK and Europe. Most importantly it was for legislation purposes and to ensure we didn’t sit with capital in transport. What has helped us grow in the UK a lot has been capable manufacturers in Belgium who understand flavours, quality, and packaging. They have grown alongside us,” explains Geldenhuys.

“In the USA, we have manufacturing facilities in Buffalo New York as well as a couple of manufacturing outlets elsewhere. For the US market, and everything exported across the Americas, we produce everything there. Before Brexit, we moved some manufacturing capacity into England to compensate for potential taxes and other uncertainties. We had to move very quickly, having products reformulated ready for the UK market.”

Today, USN also has manufacturing capability in Spain where vitamin and other tablet-based products are made, mainly for the Russian market. There is also an independent distribution

USN CEO Albé Geldenhuys

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company based in Marseille, France – formerly owned outright by USN – which handles import and distribution for various European markets. Across all locations, the company employs an outsourced model to allow USN staff to focus on their core strengths.

“When you start trying to do everything, your staff count grows but it takes focus away from what you are really good at which is branding, innovation and sales.

“We are trying to get the best positioned manufacturers for wherever we are shipping the product to,” confirms Geldenhuys.

ULTIMATE INNOVATION USN is perhaps the best examples of a South African brand that personifies and promotes never standing still.

Movement into the new facility will be followed by a major push on innovation with new products across a range of new categories being released.

“We always have a whole list of innovations that we are working on,”

admits Geldenhuys. “Some of them may never see the light of day, but innovation takes time and we don’t rush things to market. In energy drinks, we are focusing on new flavours. We have a product off the line focussed on the gaming market, which has grown so much. It’s a very precisely formulated cognitive function energy drink designed for gamers. If you launch a good product, word of mouth usually sells it. We are looking at partnering with Xbox, and partnerships like this have been something which have helped us a lot.”

Partnerships have also been sought with Nestlé, where the two companies have worked together to develop new chocolate flavours in the whey class. Similarly, in the pre-workout category, USN has teamed with JBL to develop marketing campaigns that drive consumer interest. “It brings good credibility and strong brand association,” says Geldenhuys.

Flavour technology has helped to open new growth avenues where brands can now deliver flavoursome products, with less sugar, from plant-based ingredients – all while delivering the same punch of protein.

Between 2016 and 2020, plant-based product launches across sports nutrition categories grew by nearly 25% globally, showing significant consumer interest in protein sources that are healthier, with a smaller environmental footprint.

“We are also looking at organic, whole-food shakes. We have a Wholefood Gainer and we have 100% Plant Protein which is showing great momentum, so this is a category with a lot of promise for us. In all our categories, we are focussed on improvement and growth,” Geldenhuys points out.

By forming a more cohesive and integrated approach to logistics and manufacturing, growth will come through economies of scale as USN goes to market as a global business rather than smaller, individual country units.

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“We are focusing on using our global size to strengthen our relationships with our suppliers so that we can source the highest quality whey protein and creatine where we are doing significant volumes. We have been working in isolation between the UK, South Africa and the USA, sourcing ingredients independently. Now, we are using our strength as a global company to source as one buyer,” details Geldenhuys.

“We are also looking into investing in our own capsule and tablet manufacturing capability. It’s a lot more technical and takes a lot of investment but, ultimately, if you look at the vitamin tablet market has grown since lockdown, it’s significant and we see it as a massive growth opportunity,” he adds.

Fortunately, in times where business growth and sustainability has been

tougher to achieve than ever before, USN has continued to demonstrate what is possible when determination and persistence is applied. Like the rugby star looking to gain muscle mass, consistency, and a focus on doing things the right way has been key for USN riding out the storm. Consumers know the brand, and it provides comfort when times are tough.

A Deloitte report released suggests that as concerns about physical well-being increase, propensity to purchase name brands also increases. The same is true as concern about financial well-being rises.

“In these times of uncertainty, it’s amazing how customers go back to the brands they trust. It is not a time to take a chance on something new.

They want to invest in what they trust,” confirms Geldenhuys.

Clearly, USN is a South African brand, trusted globally, with mass

appeal that is only going to improve and expand as the product portfolio and international reach increases. With two decades behind it, market share is there for the taking, and USN knows how to press.

Unfortunately, due to lockdowns and restrictions, the company wasn’t able to celebrate its platinum anniversary in 2020, but Able Geldenhuys promises that all stakeholders will have the chance to reminisce of successes very soon.

“At this stage we will continue with special campaigns and deals for retailers and customers that have supported us.

There’s no question that we will create excitement,” he concludes.

WWW.USN.CO.ZA

www.enterprise-africa.net / 21

GLOBEPAK

Project Siyakhula

Propels Globepak PRODUCTION: David

Napier

A powerful new facility has emerged at Louwlardia Logistics Park in Centurion.

Housing the operations of USN and Globepak, this new site is a world-class facility for industry leading organisations. Globepak’s work will be complete in September and full production will commence as the company hunts growth alongside its parent.

22 / www.enterprise-africa.net

INDUSTRY FOCUS: MANUFACTURING

//

Kwena George Mmonwa is a distance runner from Tembisa.

He started working for South African-founded sports nutrition brand USN, in the company’s warehouse, in 2010. At the time, Mmonwa was not an elite athlete. In fact, he had little. By chance, a discussion with a USN colleague led him to taking up running. His enjoyment for the sport grew quickly. In just three years, he had become infatuated and signed up to race in the 2013 Comrades Marathon.

Much to his surprise, he ran 07:23:53,

// WE SEE OURSELVES AS A CONTRACT PACKER AND WILL ENGAGE WITH ANYONE WHO WOULD LIKE TO MANUFACTURE A DRY POWDER SPORTS NUTRITION PRODUCT //

24 / www.enterprise-africa.net

earning a silver medal. He also grew from a career perspective, receiving promotions and gaining seniority.

By 2018, he lined up for his sixth Comrades, citing his training plan – running 18km to work and 18km home each day – as key in his progress. But his efforts have not stopped. His Comrades PB is now 06:39:05 and he has his eyes set on winning the famous but gruelling race.

Perhaps one of the hidden drivers of Mmonwa’s success is his fuel – USN’s high-quality nutritional supplements for optimised health and sport performance. But often hidden behind internationally-recognised USN brand is another top performer – Globepak.

As the manufacturing and packing powerhouse – the beating heart of USN’s South African operation – Globepak is currently ploughing investment into a new facility that will see it located on the same site as parent USN, alongside distribution, marketing, sales and office functions.

The new, state-of-the-art facility will be created to world-class standards and will drive capacity improvements for USN as it continues to innovate for aspiring athletes, like Mmonwa, from all different backgrounds.

AMAZING NEW HOME “Globepak has 6000m2 and there is a lot going on. There are constantly contractors and suppliers on site, and it is all working well at the moment,” says Managing Director Douglas De Bruyn.

“We are progressing well. Over the past few months, we have been preparing the area on site to house the Globepak factory and make some step changes in both capacity and efficiency to make it a truly world-class manufacturing facility.

“We have laid hygienic epoxy floors and we’ve put up insulated isopanel walled clean rooms where all the measuring, weighing, blending and packing of our products will take place. We are busy installing the dust extraction and fresh air supply into these rooms. We have taken delivery of some of our new packaging equipment. We are taking across the majority of our equipment from our existing facility but, in order to expand, we are investing in new packing lines.

The idea is that, within weeks, we will be installing our new blending and packing equipment, and towards the end of August we will relocate the rest of our existing equipment and begin

GLOBEPAK

operations in the month of September.”

In September 2020, after a chaotic year for all businesses, discussions began at executive level about expanding Globepak’s capacity. The company was quickly outgrowing its existing infrastructure and, with future demand expected to spike across several new product ranges, the decision was taken to move Globepak to a new site at Louwlardia Logistics Park in Centurion.

To make the journey extra exciting, USN decided to relocate its entire distribution centre, warehousing, and office at the same time.

“Very quickly, the brief changed from looking at a growth space for Globepak to looking at an even larger facility that could take all aspects of the business under one roof.

“We put the distribution warehouse in first and we then moved the USN office in at the end of the first quarter, and now we are busy working on the Globepak move. Demand has increased so we are using it as an opportunity to upscale and make improvements along the way,” says De Bruyn.

Right now, solar panels are being installed on the roof by a local

contractor so ensure security of supply and bolster environmental credentials. Globepak has proactively searched for local suppliers, preferably those with a presence in Centurion, to ensure investment is felt within its community. In June, a 350kVA generator arrived on site – soon to be hooked up to the new solar array – bringing energy guarantees so that the site can operate uninterrupted.

This uptick in capacity and activity will inevitably create new employment opportunities. “The fact that we are putting in two additional packing lines already requires additional manpower to operate those lines. As the volumes grow, the other areas within the factory, especially in the warehouse and support functions, will need to grow too,” says De Bruyn.

FAST MOVING To date, this is a project that has, like Mmonwa, moved with speed – something which De Bruyn has welcomed.

“I come from a background of building factories in the food and beverage industry and I have loved the

opportunity to be able to set this vision and see it through.

“It’s a lot faster and a lot more agile and nimble. It will be one year from having a conceptual thought about possibly moving facility to moving into a brand-new, world-class manufacturing facility. Previously, in the corporate space, I’ve seen the wheel turn a lot slower. Here, once we made a strategic decision, it was all guns blazing to get it done and get it done best, rather than discussing whether it should be done.”

By September and completion of this project, Globepak will be focusing on the future and the opportunities that are clearly present in the market, rather than looking backwards through the recent turbulence.

“The first lockdown hit quite badly in terms of sales as no one knew what was going on and there was reduced retail foot traffic. We had to downscale our operations substantially from April to August 2020,” admits De Bruyn. “From September, it was strange, there was a change in consumer behaviour and people became very fitness orientated.

The online fitness programs became

www.enterprise-africa.net / 25

INDUSTRY FOCUS: MANUFACTURING

// WE HAVE BEEN PREPARING THE AREA ON SITE TO HOUSE THE GLOBEPAK FACTORY AND MAKE SOME STEP CHANGES IN BOTH CAPACITY AND EFFICIENCY TO MAKE IT A TRULY WORLD-CLASS MANUFACTURING FACILITY // popular, and socialising was only happening outdoors. There was a big uptake in our category of products and we realised that, if the growth was maintained, we would need the larger facility. It has been maintained from September 2020 until now and that has been great for us.”

Despite major success so far, now is not about coasting for Globepak. The company remains cautiously optimistic, but De Bruyn is mindful of the challenges that will likely need hurdling. “Regarding the recent unrest in South Africa, we were unscathed. Our location and the areas

26 / www.enterprise-africa.net

our people live remained untroubled.

From Covid, there has a been a big emphasis from us to keep our staff healthy and ensure that we can continue with operations. We have managed to do that and I am very grateful.

“We are cautious as most of our material supply, and some of our equipment for our new site, comes through Durban harbour. We haven’t been affected yet, but I am conscious that we could see some impact on supply through Durban. To date, there has been no direct impact.”

The product range of USN, developed and manufactured in South Africa by Globepak, is perhaps the catalyst in what has been exceptional growth for both businesses. Without doubt, this enviable range will grow and, as consumer trends change, Globepak will adapt.

PRODUCT DEVELOPMENT? “Globepak does the development work and the food scientists who research these new products sit within our company. That has been a trademark of USN; at one stage around 20% of turnover was made from innovations and new products in the market.

USN has always had a big churn of new flavours and new products, to establish first-to-market in their chosen categories. Globepak has been a beneficiary of that innovation drive.

“Within the current climate where people are very conscious of immunity, we have seen big growth in people looking for products that actually offer a health benefit and not just from a protein perspective. Vitamins, digestive, immune support are categories that have been growing. Products with collagen have also been popular and collagen has been a rising star ingredient across multiple ranges,” De Bruyn details.

Plant-based is another category which is booming. The International Society of Sports Nutrition (ISSN) has recognised the effectiveness of plat-based protein products. The rise of plant-powered athletes and those attributing their success to vegan or vegetarian diets is well-documented, and sports nutrition companies have tailored their offerings to ensure accessibility for all.

“It has come off a small base but the growth has definitely been there,” confirms De Bruyn. “The plant-based revolution has been undeniable around the world and we think that is a sustainable growth area. At first, when USN launched their premium plant protein range, the powder was brought in from the US and Globepak packed it from bulk into smaller containers for USN. When the growth became clear, we saw the benefit of manufacturing that product locally. We now source all ingredients and raw materials, and we blend the product here in South Africa.

It has been a success story so far and we do see that range growing.”

Interestingly, despite being founded to supply into USN and becoming owned 100% by USN five years ago, Globepak goes to market independently and plays as a manufacturer and packer for other sports nutrition companies in the industry. This complicated growth avenue is another area of promise for De Bruyn.

“Our second biggest client is BioGen. They also have big growth ambitions but they have been sold

GLOBEPAK

exclusively through Dis-Chem, which is also USN’s biggest channel. BioGen has been exploring operating more independently and they have now launched in Decathlon.

“We pick up a few smaller challenger brands which may be seen as competitors, but the reality is even the biggest nutrition manufacturers in the US also manufacture for their competitors. It is not uncommon for factories to manufacture for multiple brands.

“If we aren’t manufacturing for them then someone else will. We ensure we have IP protected on both sides and from a Globepak perspective we ensure we put the best product out there for whichever customer we are working for. Although USN owns us 100%, we see ourselves as a contract packer and will engage with anyone who would like to manufacture a dry powder sports nutrition product.”

In the immediate future, the majority of growth experienced at Globepak will come as a result of the USN push into new, emerging markets.

With a push on new products and pumping out large volumes for export,

all while bedding in new tech and equipment at a new site, it will remain crucial that Globepak’s focus on the core is not neglected. Since 2000, USN has prided itself on an industry leading whey protein product, endorsed by Founder and CEO Ablé Geldenhuys.

“Although innovations and new categories are where growth is, we are very conscious that the core of the business – whey protein – is very much where the volume and value for the business sits,” says De Bruyn.

“We will never overlook a category, especially one which has done so well, and so these categories regularly get maintenance. We have to look at the flavours, formulations and the packaging. USN has asked recently for us to look again at the packaging and use less plastic as the South African consumer becomes more environmentally conscious.”

The end result here is consistent, sustainable, profitable growth. This sits perfectly within the project aims, and spreads faith and confidence across an already ambitious workforce.

“From an employee perspective,

most people have been with Globepak since its establishment. The company was started from scratch around 11 years ago and many people here have seen that entire growth story,” says De Bruyn.

“They have seen the move from a small premises into the facility we currently occupy and now they are seeing the step change again as we upgrade into the next space. In the current climate, any indication of investment and longevity is very welcome. It shows ambition and confidence around job security and growth. We have adopted a project name ‘Siyakhula’, the isiXhosa word for ‘we are growing’ – it brings positive sentiment.”

The constantly improving USN product range, powered by Globepak, like Kwena George Mmonwa is reaching new heights and, thanks to investment into the new site, surely cannot be stopped in pursuit and maintenance of the number one position.

WWW.USN.CO.ZA

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NESTLÉ SOUTH AFRICA

Utilising the

Power of RE PRODUCTION: David Napier

Building a strategy around three sustainability pillars Rethink, Reuse, Repurpose, Nestlé is repositioning its operations across East and Southern Africa to be more environmentally conscious through real actions and not just well-meaning messaging. www.enterprise-africa.net / 29

INDUSTRY FOCUS: FOOD

//

RE – to return to a previous state. The long-held vision of society to reverse the impact of the climate crisis and global heating is characterised by these two letters.

Reticent has been the approach of many companies. Rejection of that restraint has been the reply from conscious consumers. Now, they say, is the time to make a difference. In Africa - where agriculture, forestry, the oceans economy, and more are crucial sectors exposed to the impact of a changing climate – recognition of the problem is required. Big businesses, often criticised for bureaucracy and lengthy decision-making processes, have been in the spotlight for their response.

Nestlé, the food and drink multinational headquartered in Switzerland, is delivering innovation and revolution, especially where overhaul of thought leadership is needed regarding sustainability. Saint-Francis Tohlang is Corporate Communications and Public Affairs Director for Nestlé’s ESAR (East and Southern Africa Region) market. He tells Enterprise Africa that the company is resolute in its focus on sustainability, and understands the responsibility on big business to lead.

Revamping business ideals and creating shared values across the entire stakeholder network has helped to map the way forward. This approach is now being seared into the organisation’s culture, especially across ESAR which includes 23 country markets split into six clusters.

// THE CORE OF OUR BUSINESS IS OUR PRODUCTS, BUT HOW DO WE MOVE BEYOND JUST THE PRODUCT AND PROVIDE AMAZING CONSUMER EXPERIENCES // 30 / www.enterprise-africa.net

A cornerstone in this new operational approach is utilising the power of RE – Rethink, Reuse, Repurpose.

And the positivity realised across all elements of the business is real.

RE NOW “In 2020, we launched the ‘RE’ Sustainability initiative and it’s allencompassing in so many different ways,” begins Tohlang. “We have three pillars: Rethink, Reuse, and Repurpose.

Thematically, it underpins our entire approach towards sustainability. It serves as a framework in terms of communication. We were pretty clear that we needed to create an accessible language when speaking on sustainability that is consumer friendly, simple, and understandable. But, more importantly, beyond creating that framework, what RE allows is for us to be focused and consolidate the many things we are doing on sustainability under one umbrella.”

In April 2021, Nestlé became the first food company to join Polyolefin Responsibility Organisation (Polyco) in South Africa – a non-profit focused on making waste a valuable resource that works for the economy. These relationships will become vital as South Africa moves towards implementation of legislation in November which will force manufacturers to responsibly manage product packaging at end of the cycle, feeding materials including polyolefin plastic packaging back into the system.

Mandy Naudé, CEO of Polyco was thrilled with Nestlé’s involvement. “We are excited to further our impact in growing the collection and recycling of polyolefin plastic packaging in South Africa, and to work closely with our members to support ending plastic waste in the environment.”

The Rethink pillar holds all in place through a cultural, organisational reset. A total reimagination of business ethos and processes sets out a new, focussed direction that achieves new goals.

// WE NEEDED TO RECOGNISE AND BRING TO THE FORE OUR SHARED VALUE PHILOSOPHY OF IN SOME WAY MAKING A DIFFERENCE // “We must be sustainable by design,” stresses Tohlang.

“It’s end-to-end, looking at business models and embedding sustainability at the very core of the concept. Not just a product, business process or approach.

It’s about looking at fundamentally, how is this sustainable by design. We are rethinking our relationship with the environment, we are rethinking our business, we are rethinking the role that a private organisation plays in combating some of the environmental issues we face.”

According to UN studies from the Intergovernmental Panel on Climate Change (IPCC), ramifications of the world’s warming by more than 1.5° C would be profound in sub-Saharan Africa. Heat waves, droughts, crop failures and resultant economic damage are likely in African regions within 15 degrees of the equator. If drastic action is not taken, rainfall in southern Africa could decrease by 20%, with consecutive rain free days set to increase. It’s a problem for all.

Tohlang explains that the Reduce pillar of the company’s strategy surrounds a major lessening of the Nestlé impact on the environment.

“It’s about efficiencies in our factories. Nestlé is going for zero environmental impact by 2030 and so that has to come bottom up from all of the different regions and markets where they all make a contribution so that collectively Nestlé globally can fully realise the vision.”

Globally, the company which has 291,000 employees across 187

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countries, has pledged net zero greenhouse gas emissions by 2050.

Nestlé cites the climate crisis as one of the greatest risks to the future of its business and is therefore setting out a plan incorporating great urgency. By 2030, it will have halved its emissions, and by 2050 achieved total offset.

Changes in production and the supply chain, alongside advanced agricultural techniques will be small elements of a big plan.

“That means zero waste to landfill which we have already achieved in East and Southern Africa,” details Tohlang.

“It’s about looking at opportunities to reduce water inefficiencies. In our Mossel Bay factory we have Zerau Water Technologies which is a flagship in the Nestlé world. We source milk from a farm and 80% of that milk is water.

Through an evaporation process, we can extract the water from the milk and dry the milk solids as powder. We then reuse the water in our factory operations which has led us to 161 million litres of water savings per annum. We also draw less water from the municipality and the factory is situated in a water scarce part of the country.”

In George, Nestlé is busy developing the Skimmelkrans project, a dairy farm with net zero carbon emissions. “We are confident it is the first in Africa,” says Tohlang. “By 2023 the initiative will be complete. We are focussing on a number of different interventions and it involves using the same factory where the Zerau

// IF A PRODUCT IS SUPER HEALTHY BUT CONSUMERS DON’T ENJOY THE TASTE THEN IT’S NOT WORTH IT – IT’S A VERY DIFFICULT BALANCE // 32 / www.enterprise-africa.net

technology is installed. It does give us a very interesting circular loop which is great.”

Net zero is achieved through a multifaceted approach which removes the same amount of emissions from the atmosphere. Innovative soil work, water conservation, feed management and manure processing are some of the biggest reductions of greenhouse gases.

Methane, one of the most harmful greenhouse gases that comes from the cattle and dairy farming industry, is reduced at Skimmelkrans by collecting manure during grazing and pressing, separating the solids and liquids, removing moisture. The solids are used in compost and the liquids for irrigation.

This all feeds into the Repurpose pillar of the RE Sustainability initiative.

“It’s about how we create more circular models and loops within our business. How do we ensure the true meaning of circularity – ensuring waste from one product is an input into another? That is a different process altogether,” says Tohlang.

He highlights Project Indigo as another example where waste coffee grains from the company’s large coffee production process are used as a growth vehicle for a community mushroom farming project. Previously, spent coffee grounds would have been sent off to farmers as feedstock. “It’s now no longer waste but it is a benefit to the community.”

FORTIFICATION In the ESAR market, Nestlé has identified the need for a range of affordable nutrition – products that provide genuine nutritional benefit with added vitamins and minerals, catered to regional requirements. Tohlang says that the most important factor behind this idea is providing good nutrition whilst ensuring flavour and taste is not lost and products continue to remain appealing to consumers.

“We are, particularly in East and Southern Africa, focussing specifically on affordable and accessible nutrition.

That is about developing products that are affordable, but are also fortified with the likes of iron, vitamin A and zinc as an example – to counter deficiencies that are so rife in Africa. Affordable accessible nutrition is not a product but a strategy.

Affordable nutrition is about nutrients in the broadest form not just fortification, but balancing energy, protein and fat to ensure we address not only the micronutrient needs of our communities but also the risks for chronic lifestyle conditions such as obesity.

“You have to balance preferred taste with key nutritional concepts such as fat and added sugar. It remains a fine balance to address consumers’ taste preferences with optimal nutrition. We’ve made great progress focussing on removing transfatty acids, and reducing sodium, and added sugar in our products.”

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The recipe for popular chocolatemalt drink MILO has been renovated and improvements have been made to the malts; added sugar has been reduced and iron fortification improved. We have also included zinc and vitamin A fortification whilst adding a cocktail of B-vitamins to improve the energy uptake for consumers at a cellular level.

MAGGI Noodles, a key brand in the Nestlé portfolio, now has more fibre and less sodium in the sachets, but they have not compromised on taste. In fact, compared to 2005, a year’s production of MAGGI products already contains more than 12,000 tonnes less salt. have been ramped up – “it’s all part of our strategy to ensure good food for a good life.” says Tohlang.

“We have an amazing network of very sophisticated R&D centres right across the world and they drive innovations from the product perspective. Apart from launching new products we are also driving renovation of existing products to remove trans-fatty acids and further reduce sodium and added sugars,” explains Tohlang.

GROWTH INTO THE FUTURE In February, Nestlé announced its full-year results for 2020 from its HQ in Vevey, Switzerland. In a challenging year for all businesses, the company reported that organic growth reached 3.6% with

34 / www.enterprise-africa.net

real internal growth (RIG) of 3.2%. The outlook for 2021 was positive with a predicted ‘continued increases in organic sales growth towards a mid single-digit rate. Underlying trading operating profit margin with continued moderate improvement. Underlying earnings per share in constant currency and capital efficiency expected to increase’.

“In this unprecedented environment, we achieved our third consecutive year of improvement in organic growth, profitability and return on invested capital,” said Nestlé CEO Mark Schneider.

“We remained focused on sustainability and set out our path to achieve net zero greenhouse gas emissions by 2050. This journey is expected to support future growth and be earnings neutral – it will generate value for society and our shareholders,” he added.

For Saint-Francis Tohlang, growth in ESAR will be achieved through a relentless and ongoing focus on the preplanned strategy including sustainability, technology, innovation, and consumer experiences, proving that success can be attained when concentrating on both business performance and environmental KPIs. “Sustainable growth is a key focus area for us. We want to accelerate and then sustain growth and that is the primary focus for the business in South Africa where Nestlé

has been for 106 years,” he says.

“We want to be a leader in terms of the circular economy principles in practice in a business. It’s one thing to talk about this but it’s a whole other thing to really demonstrate it and lead from a business perspective, demonstrating that it can be done to the benefit of all the different stakeholders.

“We also want to look at the role Nestlé can play in terms of mitigating the far-reaching consequences of lacking food security. That is something in its infancy for Nestlé in our region but certainly something we want to concern ourselves with as a business.”

Obviously, the business is bolstering its digital drive to ensure that it reaches as many consumers as possible. But, as well as achieving volume through scale, Tohlang is very focused on building interaction and creating true brand loyalty locally.

“We are driving digitalisation within and making sure the business is future-fit. We want to focus on innovation but beyond the core. The core of our business is our products, but how do we move beyond just the product and provide amazing consumer experiences.

We definitely want to continue on our diversity and inclusion journey. We are a Level 3 BBBEE company and that was a deliberate effort and a great achievement for a multinational. We absolutely want to

NESTLÉ SOUTH AFRICA

continue on the transformational agenda.”

This growth and development is reinforcement that the company’s ‘Good food, Good life’ mantra is being achieved.

While needing constant attention and updating, a strategy is in place which is providing success.

Going forward, after what has been a difficult period for the region, Nestlé has more innovation to add to its portfolio on the way. The burgeoning meat-free market has already demonstrated clear avenues for growth. In June, the company announced its intentions by launching the Harvest Gourmet range for restaurant customers. The burgers, schnitzels and chargrilled pieces are designed to bring the flavour and texture of meat, but made up entirely of plant-based ingredients that deliver protein and other nutritional benefits.

“We really do have some exciting projects around sustainability and the circular economy,” reiterates Tohlang.

“There are exciting innovations being worked on in the product range, and plant-based is indeed a key trend that Nestlé is looking to advance globally.”

Even through the Covid-19 pandemic, this customer-conscious and inventive nature has been fostered internally and through the value chain.

“We needed to recognise and bring to the fore our shared value philosophy of in some way making a difference whether it was through Covid relief measures, donations, product in kind, or anything else. Our East and Southern Africa CEO, Bruno Olierhoek, had a very interesting philosophy that we are only as strong as our weakest link, so across the entire value chain we needed to make sure we partner with suppliers as we have resources that they might not have access to. If a key supplier is struggling, that will definitely impact our business, so we have to make sure the weakest link is supported. It has created an interesting dynamic in our communities. Partnership with customers, suppliers, government has become vital through the pandemic,” says Tohlang.

Business continuity at all levels has been important for driving revenue within

Saint-Francis Tohlang

the business. Without this, Nestlé could not push such an effective sustainability campaign – one which is more than just words and one which has already seen action on the ground resulting in benefits for all stakeholders.

Importantly, the future success of the RE concept in the East and Southern Africa Region is the ability and willingness of big players to work collaboratively. Without this, the regenerative capacity needed to ensure long-term sustainability in the food production industry will not be realised. By placing RE at the forefront of thinking; and driving it through all tiers of business, across all regions, Nestlé is now on a journey towards deeper long-term health, fortified by shared values and powered by a circular loop mentality.

“As the world’s largest food and

beverage company, we remain cognisant that a sustainable circular economy cannot be realised without transformative actions,” Tohlang rounds off.

“World-wide demand for food is growing and while eating habits and behaviours are changing, there is demand on food manufacturers to ensure that their production does not impact the planet. At the same time, agricultural supply chains face many challenges, from an aging farming population to the effects of climate change. At Nestlé, we want to help build a sustainable, long-term supply of ingredients by focusing on regenerative practices,” concludes,” he concludes.

WWW.NESTLE-ESAR.COM

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CARMIÉN TEA

Drinking to the Good Health

of SA’s Rooibos Riches PRODUCTION: Benjamin Southwold

Uniquely cultivated in a specific segment of the Cederberg mountains, South Africa’s indigenous tea plant rooibos is swiftly becoming its most treasured homegrown crop, with a swathe of proven benefits and now boasting protected status. Carmién Tea is a leading producer and supplier both of quality bulk and packaged rooibos tea products in South Africa and worldwide exporter, as sharply focussed on giving back as it is on expanding its range and presence around the globe.

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INDUSTRY FOCUS: AGRICULTURE

//

of many serious conditions. Researchers are especially interested currently in Aspalathin, a unique antioxidant found in rooibos that could lower blood sugar.

// ROOIBOS IS ONE OF THE MOST ICONIC PRODUCTS OF THE WESTERN CAPE //

PROTECTED DESIGNATION AWARD That rooibos has gained global prevalence is all the more remarkable given that, despite the efforts of many farmers far and wide, it steadfastly refuses to flourish outside of a small corridor of the Cedarberg Mountain Range. “The rooibos can only grow in the narrow 60,000 hectare belt in the region where we are located, nowhere else,” underlines Carmién Tea Marketing Director Lize du Preez.

“This means that all of the production happens this side, a combination of the tea we grow ourselves and what we source from other rooibos farms in the designated rooibos region. All our facilities, factories - everything is on our Citrusdal farm,

Cherished in South Africa for generations, rooibos has seen its popularity swell worldwide in recent decades and is now exported to more than 31 countries, including the UK, Germany, China and the United States. Loved by tea aficionados for its flavour, described as smooth and sweet with a hint of vanilla, and easy to blend with other ingredients, there is a good deal more to rooibos than its taste.

Synonymous with numerous health benefits, it is packed full of antioxidants and is a source of some unique polyphenols which can reduce the risk of inflammation, a key trigger

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at the gateway to the rooibos tea region here in South Africa.” Only the best quality organic and conventional rooibos makes its way into Carmién Tea’s end product, taken from prime growing areas such as Piekenierskloof, Wupperthal and Gifberg.

Without doubt a special region; and certification has now been bestowed upon it to ordain that all rooibos must be cultivated, produced and processed in this specific geographical zone.

Joining the likes of France’s Champagne, Greece’s Feta cheese and Porto’s Port, rooibos is in truly iconic company, and becomes the first product in Africa to join this select bunch on the EU register of protected designations of origin and geographical indications.

“As an industry we recognise the close connection between rooibos, the area where it grows and the community and their traditions,” commented Dawie de Villiers, SA Rooibos Council legal

CARMIÉN TEA

// WE HAVE ALWAYS HAD HIGH DEMAND FOR OUR BULK EXPORTS, INCLUDING TO SOME OF THE MAJOR INTERNATIONAL TEA BLENDING COMPANIES // director. “Our goal is to protect, support and promote the sustainability of not only rooibos, but the rich heritage of the industry as a whole, which is why we so doggedly pursued the registration.

“It protects the product against would-be producers outside of the rooibos region in South Africa.”

The designation will be pivotal in sustaining the rooibos industry, as increased publicity and recognition leads to higher consumption, in turn contributing to the preservation of traditional knowledge. “Rooibos is one of the most iconic products of the Western Cape and its inclusion in the PDO register will signal its unique quality

to consumers, not only in Europe but all over the world,” reasoned Western Cape Agriculture MEC Dr Ivan Meyer.

“Rooibos also forms part of SA’s rich biodiversity,” added de Villers, “and we believe that the registration will make way for other indigenous species to also be indicated as PDOs and reap similar rewards.”

LOYAL TO ITS ROOTS Like the rooibos it lovingly tenders and produces, Carmién Tea represents another precious South African commodity - the truly authentic familyrun business remaining profoundly loyal to its origins. “With a background in the

farming operation side, my mother, Mientjie Mouton, who is now Managing Director, started the company back in 1999,” Lize du Preez recounts, “in an old farm shop on the historic Brakfontein Estate near the small town of Citrusdal.

“Our family farms are in the Citrusdal region, where we work with both citrus and rooibos tea,” du Preez expands. “and when direct product exports became possible Mientjie really saw the great potential, not only in shipping out rooibos tea all across the world, but also in creating a brand connected and coming straight from the farm, unlocking the value chain for the workers involved as well.

John Aitken CC John Aitken CC is a family business founded in the 1970s. Over the years, the company has represented many international brands, but the core focus has always been speciality papers, primarily tea bag filter paper & related products. John Aitken CC represents and distributes tea bag paper for Ahlstrom-Munksjö; pyramid tea bag media for FBF as well as tea bag thread for Zwirnerei GmbH in Germany.

John Aitken CC supplies Carmien with tea bag paper for pillow tea bags as well as BioWeb (PLA) media for Pyramid Tea Bags from the Ahlstrom-Munksjo Plant in Chirnside, Scotland. The company also supplies tagged PLA Mesh for production of the tagged Pyramid Tea Bags, manufactured in the UK by FBF. Carmien Tea has been proudly supported by John Aitken CC through the supply of Tea Bag Paper since 2014.

Ahlstrom-Munksjö continues to put a considerable amount of R&D and investment into plastic free media, focusing on reducing the environmental impact at end of life. This aligns well with the Carmien Tea requirement, culture and marketing Strategies.

John Aitken cc +27 (0)82 9030500 dale@aitken.co.za

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INDUSTRY FOCUS: AGRICULTURE

“Initially this was presented to local retailers in South Africa, which led to a few listings, and developed into exporting in bulk, which today represents around 75% of our volume.

More than 50% of our turnover, though, comes from packaged, branded products, which we sell locally as well as to some international retailers.

“We also do private label packing, and have our very own factory on the Bergendal farm where all the rooibos processing and packing happens,” du Preez continues. “When Mientjie first started the company everything had to be outsourced, but as the company grew we were able to invest in our own facilities.” This makes Carmién Tea the producer, processor, packer and exporter of its product, giving the customer an unparalleled direct link to the plant.

“Our key differentiator is that we

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// ALL OUR FACILITIES AND FACTORIES ARE ON OUR CITRUSDAL FARM, AT THE GATEWAY TO THE ROOIBOS TEA REGION IN SOUTH AFRICA // are both the label and the producer,” du Preez notes. “Our model is centred around bringing the consumer as close as possible to the source of the product.”

The deregulation of the rooibos industry in 1993 was pivotal for Carmién Tea, outlines Mouton. “We pride ourselves on what we have achieved since we were allowed to produce, process and market our products on an independent basis, outside the single channel rooibos marketing board that monopolised the South African industry until 1993.

“We offer quality products, we invest in our people and support the local community to ensure production

stability and a rewarding future for all involved for generations to come.”

Every Carmién Tea sale directly benefits nearly 700 farm worker shareholders, with around 5000 dependants, du Preez reveals. “With the help of government funding we have been able to give the farm workers 50% shareholding in the Bergendal Rooibos factory. The most important thing for us is making sure that the people on ground level also feel the benefit of our growth and sales: Bergendal Rooibos is a joint venture whereby we own 25%, the producer 25%, and the farm workers own the remainder.”

CARMIÉN TEA

GOOD NEWS FOR BREWS Even in arguably the most trying year in living memory, the nature of its product has meant that Carmién Tea has still been able to report positivity and growth. “Last year was a good time to be selling such a healthy, hydrating product as ours, when people were even more health-conscious than normal,” du Preez explains.

“Carmién Tea continues to grow well, and we are always looking to add

// LAST YEAR WAS A GOOD TIME TO BE SELLING A HEALTHY, HYDRATING PRODUCT LIKE OURS //

more value on this side prior to export, such as the burgeoning packaging side of the business,” she adds. “We have always had high demand for our bulk exports, including to some of the major international tea blending companies, which is crucial when creating value for our producer-shareholders.

“As well, though, we are growing and pushing our own brand in both local and international retailers.

Between the two approaches we have coverage of Europe, the USA, the far and Middle East and others.”

The company’s range continues to develop in line with these aims, du Preez sets out. “Last year, we developed and launched the first ever cold brew rooibos tea range, ideal for the hot South African summer and specially developed to be made with cold water.

We also have a suite of new wellness products on the way, including a rooibos tea with added Vitamin C designed for immune boosting.

“Carmién Tea is all for innovation, and we are renowned in the local market for launching a new product every year,” du Preez wraps up, and now the aim is to bring these precious wares to every corner of the globe. “We will look now to expand our markets by expanding our international footprint substantially.

“It will take time, and significant investment, but Carmién tea aim to bring pure quality, rooibos to cups, in every country.”

WWW.CARMIENTEA.CO.ZA

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PRIMOCANE CAPITAL

Blueberry Blueprint

Benefits Bottom Line PRODUCTION: Karl Pietersen

Technology improvements, a professional drive for capital, and partnerships with willing investors are helping Primocane Capital to seed success in South Africa’s fertile agriculture industry, making the most of the humble blueberry. Managing Director Derek Stanford talks to Enterprise Africa about a fresh approach to farming which can be replicated continent-wide.

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INDUSTRY FOCUS: AGRICULTURE

//

Derek Stanford of Primocane Capital has designed a plan to change the way African agriculture projects are funded and organised. For too long has this undervalued and misunderstood asset class been neglected. The chartered accountant has built a team alongside brother Ted – an experienced farmer with skill from multiple international markets – and, by redefining risk in agriculture through the implementation of technology, Primocane Capital has grown a blueprint for successful farming operations.

Cyanococcus or blue gold is where the company starts. Blueberries are one of the most in-demand fruits globally thanks to a renewed understanding of the health benefits they deliver. Packed with antioxidants, fibre, anthocyanidins, vitamins and minerals, blueberries were one of the first foods to gain the label of superfood. This caused consumers to rush for the punnets in markets all over the world, and this helps maintain a strong price.

For Derek Stanford, the opportunity was clear. In 2017, he went about putting his experience in the global financial sector to use in his new working home in South Africa’s agricultural heartland.

“I grew up on a farm with my brother. My father, grandfather, uncles and aunts are all involved in farming so it’s in our DNA,” he tells Enterprise Africa. “I saw the opportunity to bring my skills and knowledge into a relatively unstructured, ops focussed industry. Agriculture requires you to be more intensively focussed on ops. Cashflow planning, budgeting, raising capital, dealing with those who provide the capital for you to execute

operations is often undervalued.

Banks do not offer this service, they just offer the money.

“I started doing odd jobs for guys in the agri space in the Western Cape; consulting, and helping them to raise debt with the banks, restructuring their reporting so the banks like what they see. Drafting a strategy so the banks can see what is happening is very helpful. Typically, a farmer would just call the bank and ask for millions of Rand. It doesn’t work like that anymore.

Banks want to see full business cases, models and a risk profile.

“I embarked on an opportunity to create an investment opportunity for high-net-worth individuals. It was a 100-hectare blueberry farm in the Western Cape. I tried to raise small sums of capital, but it didn’t really work. There wasn’t a clear strategy and there wasn’t an actual farm. The plan was more about taking money and expanding an agri business. The best advice I got was ‘offer something that is real’. I put something together – I found a farm, put a team together, and set a budget. We needed R200 million and asked people if they wanted to

// TYPICALLY, A FARMER WOULD JUST CALL THE BANK AND ASK FOR MILLIONS OF RAND. IT DOESN’T WORK LIKE THAT ANYMORE // 44 / www.enterprise-africa.net

get involved. Learning along the way, we managed to get three high-networth individuals from Johannesburg to back us in late 2019.”

That initial project in Wolseley Strathbreede Berries – paved the way for Primocane to grow. Demonstrating its case to investors and stakeholders, this project highlighted a new, modern, tech driven, low cost, low risk approach to African agriculture. The team cleared a 115-hectare former pear and plum farm to make way for development of an intensive 85-hectare blueberry farm that will employ more than 2500 people. The first phase saw 23 hectares planted out with prime blueberry bushes in coir peat substrate pots, under 300,000m2 of shade netting and using 130,000kg of steel hoops and legs. Extensive irrigation piping connects each growing area to a brand new, state-of-the-art pumphouse.

Taking just five months, this was one of the fastest high-spec blueberry farm developments ever completed in Southern Africa.

FLOURISHING FARM “We have been building the farm ever since, and we have been strategically exploring other opportunities after landing our first deal. People started asking questions about us and showing interest in what we are doing,” says Stanford.

PRIMOCANE CAPITAL

// IT’S A VERY EXCITING PROJECT AND WE BELIEVE IT IS A WAY TO SHIFT THE STRATEGY AROUND HOW THESE THINGS ARE DONE // These questions lead to an unexpected partnership, but one which has planted Primocane Capital under the spotlight. While the company was outwardly searching for financial investment from private capital, Stanford and team were also on the hunt for corporate partnerships.

Interestingly, one of the biggest in southern Africa’s mining sector came forward with an open mind.

Pan African Resources, London and Johannesburg listed gold miner, was looking for opportunities to bolster its ESG (environmental, social, governance) credentials.

“ESG is the hot topic if you want to appeal to investors,” details Stanford, who spent many years working with E&Y in New York.

“We hosted them on our farms in the Western Cape and they were very impressed with the level of advancement, the technology, and the jobs we are creating. It was exactly what they were looking for.

In Barberton, they had excess land, water and labour. The mine attracts those employed there as well as their families. There was a need to create employment outside of the mining industry and so we came with the proposal of a blueberry farm on their

excess land in the area. They pulled the trigger very quickly.”

Primocane went about establishing a 15-hectare site at a cost of R40 million. Going forward, an additional 50-hectares of land has been made available for second and third phase developments. Eventually, 800 employment opportunities will be created during the harvest season.

Barberton has limited opportunities away from gold mining and both Pan African Resources and Primocane Capital are excited about diversifying the exports of the region. In 2022, 300 tonnes of blueberries will be ready to be sent out to markets around the world.

“On that piece of land there was absolutely nothing,” remembers Stanford. “Usually, we buy farms that have staff and have operations and we convert them over to blueberry farms.

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INDUSTRY FOCUS: AGRICULTURE

It’s easier to roll out as everything is in place. In Barberton, it’s been challenging and it has been tough to execute on. Working with a giant like Pan African Resources, where they have procurement policies and paperwork, is different for us but it is essential and forms part of good ESG. Good corporate governance is really important in business and we are proud to say that we have stuck to all the governance expectations in place in Pan African Resources; it’s a very exciting project and we believe it is a way to shift the strategy around how these things are done.”

Primocane handles all operational aspects on the farm including hiring managers, training them up, training staff, and ensuring profitability. The important consideration for the company was long-term sustainability – could a blueberry farm make a profit here? Or would it require ongoing investment from the mine?

“As much as we focus on project profitability, we do share the same objectives with of mine, job creation, local economic development and

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// IT’S VERY EASY – PROVIDE THE FUNDING AND WE WILL DO ABSOLUTELY EVERYTHING // sustainable use of natural resources.

“We have been doing it for years and we know how to structure good teams on the ground. The feedback from the community is very positive and very rewarding. When I visit the farm, I leave feeling emotional and proud as we can see the difference it is making.

“When we visit, we see the energy and the will to work. If you sit doing nothing for years, you lose motivation and purpose but now that there is this hope, it adds energy into the air. It’s been incredibly rewarding,” details Stanford.

In the early stages, media outlets and government quickly started asking questions about the project.

Why is a gold miner getting into blueberry farming, where is the money coming from, and what is happening on site? Recently, the Department of Mineral Resources and Energy was hosted on site in

Mpumalanga and, after the success of the project became clear, new questions came rolling in, but the main query was simple for Stanford – how did Primocane get this right?

“The answer is simple,” he smiles.

“You need the right operators who buy into your strategy and know how to deliver, and you need capital.

“The mine has provided us with capital, and we have the skills to execute and operate. The beneficiaries are those who are gaining employment, those who are gaining contracts, and that is what makes the difference. We can grow and leverage our skills, and we can gain more projects and achieve scale, buying power and efficiencies. We feel this will be the blueprint for larger corporates to review how they are doing this.”

The relationship building expertise, financial and investment opportunity knowledge, agricultural

PRIMOCANE CAPITAL

industry proficiency, and favourable market conditions have created a perfect environment for Primocane Capital. Now, with involvement from a big name like Pan African Resources, the stage is set for bumper growth and Stanford is ambitious.

AFRICAN AGRI EXPANSION “Africa as a continent is screaming for growth and investment but the challenge is getting those who have their hands on the capital and the authority to approve these investments to not just see risk,” he says. “The ability to understand the risk and manage it properly is essential. Yes, different jurisdictions have different risk profiles but mostly, Africa south of the equator shares a very similar risk structures.”

Across the continent, where mining is a major industry – receiving massive investment each year – there will always be opportunities for mobilisation of unused land. Primocane now has a proposal which can quickly and easily be recreated as long as capital and commitment can flow.

“We use the land as a tool to generate growth and opportunity.

That is the difference,” says Stanford.

“We are not there to hold and own land. I would lease land from a community – no problem. We have seen how land that has been redistributed to communities but without skills and capital has gone unused. Without skills and capital you cannot do anything. It’s what you do with the land and how you do it that drives value.

“We are hoping that we can leverage this opportunity with the mine. We are a young business but we have the right dynamic among the leaders in our business to really scale up and make the most of the opportunities we are given. We are hoping to gain exposure and appeal to corporates that want to invest. It’s very easy – provide the funding and we will do absolutely everything.”

Red Ant Agriculture designs and builds innovative agricultural solutions for farmers across Southern Africa.

Our recent development of the High Clearance Spray Tractor is yet another example of working with farmers to provide world class equipment suitable for African conditions.

www.redantagri.co.za 13 Porter Street, Ceres, 6835 info@redantagri.co.za

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INDUSTRY FOCUS: AGRICULTURE

In Africa, agriculture is everything.

Reports suggest that two thirds of the continent’s working population are employed in the agri sector with figures ranging from 30-60% of GDP coming from the industry across the different nations. But the important challenge is attracting investment to continue growing. Estimates suggest only around 6% of Africa’s land is occupied by crops.

By scaling this industry you gain inevitable and guaranteed outcomes of prosperity for communities, food security for those in need, and job creation where employment opportunities are scarce. In order to scale, Primocane is utilising technology and helping to drive African agriculture into the future.

“We’ve seen how we can control so much more of the typical movable parts of agriculture, typically seen as uncontrollable risks, hence the negative outlook that investors give agriculture.

What they’re missing is the point that introducing technology takes control of

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the risks,” explains Stanford.

“My task is to educate those in the capital markets. Many high-networth individuals have built massive companies but they don’t know what goes on in agriculture. When the penny drops, the capital flows.

“I am pro investment into primary agriculture as without that primary industry that generates value for the rest of the chain, the whole value would collapse or not even exist.

If you don’t encourage investment in agriculture – literally where we grow what humans require to exist – we would be nothing. It’s about understanding how important the source of the value chain is,” he adds.

By utilising principles of hydroponic farming, Primocane hopes to improve yield and quality while also growing blueberries with superior taste. Typically, blueberry plants benefit from lots of sunshine, welldrained acidic soil, and temperature consistency. Job creation comes as the berries ripen at different stages

// THE DYNAMIC OF FARMING IS CHANGING THROUGH TECHNOLOGY IMPLEMENTATION // and require several checks to ensure optimum collection as they move from pale green to dark blue.

Hydroponic farming involves the use of soil free, nutrient rich water feeding. It is already proven as a sustainable farming method with many installations, goring many different crops now active around the world. There are enormous benefits including the need for fewer resources, higher yields, quicker growth, the ability to locate a farm almost anywhere, and the ease of troubleshooting, reduced soil degradation, and water conservation.

“The dynamic of farming is changing through technology

PRIMOCANE CAPITAL

implementation, and that has been quick over the past few years.

My father comes to the farm and sees what we have done and he wishes he had access to the type of opportunities that we are looking at.

“During harvest 80% of people employed at the Barberton site are local women. It takes around eight months to build a blueberry farm, then it takes around 12 months to bring it into production. Currently, we have three farms, and we are consulting on a fourth. By 2024, all of our current farms will be full production, with expansion plans in place. Across the country we will have created 3500 jobs,” details Stanford.

INDUSTRY BLUE Now is a great time for development of exports in the blueberry industry.

The USA is the world’s largest producer of blueberries with farms all over the country. But a combination of global warming-based weather disasters and the Covid-19 pandemic decimated some farmers crops in 2020. With fewer pickers available to harvest, and frost and drought reducing volumes and size – especially in the state of Maine where natural rather than cultivated blueberries are common – American farmers are concerned. This shortfall from a key region in the industry will leave gaps in global supply chains as supermarket buyers vie for stock. Stanford is keen for Southern Africa to step up.

“The one industry that has remained strong during Covid is agriculture where we have seen growth rather than decline. It’s a robust and resilient industry which has been overlooked for too long and we are putting it back on the map as a credible asset class for investors to look at.

“We are exploring opportunities in Zimbabwe, so we see that there is demand for the services we offer, but the biggest hurdle when we review opportunities is always access to capital.

“We want to appeal to government and larger institutional investors as these funders wait to see what private does. We are slowly getting to the point where it is working and we are now hosting political leaders on the farm in Barberton as they are interested in learning how we are making it work.

We are building a solution to a big problem,” he says.

Barberton is now the perfect demonstration for investors and institutions. It is an advert for South Africa, and an example for agriculture.

A tech-based approach, with profitability as a core focus, will be the modern farming model. According to the UN, food production needs to grow by 70% by 2050 in order to meet demand from a swelling global population. With just 1% of commercial

lending going into agriculture in Africa, changes are required.

Primocane Capital and Stanford have the model. Now is the time for scale and the bearing of fruit.

“It’s a magic industry, I completely back it and believe in its potential.

A personal goal of mine is to ensure I educate influential people on how important this industry is globally.

“We pride ourselves on getting things done. I am very excited about the future and we firmly believe there is not anyway that we cannot succeed,” he concludes.

WWW.PRIMOCANECAPITAL.COM

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© Shoprite

SHOPRITE People Power Gives Shoprite

Strength In Adversity PRODUCTION: William Denstone

Operating nearly 3000 stores in 14 countries across Africa, Shoprite is Africa’s largest food retailer. Long considered part of the fabric of its home market of South Africa, it has kept the nation safely stocked throughout the pandemic and prioritised the safety and wellbeing of staff. Valuing its 150,000 people, from trainee to board level, has been pivotal in keeping it growing, innovating and, ultimately, triumphing. www.enterprise-africa.net / 51

INDUSTRY FOCUS: RETAIL

//

Around the world, uncertainty and constantly changing messages have brought enormous pressure and demand to food retailers and supermarkets.

The days leading up to South Africa’s countrywide lockdown last year saw retailers record massively increased volumes of shoppers stocking up on essentials, while retail-related conversation on social media platforms spiked as lockdown loomed.

As everything shut down around them, supermarkets were among a small group of retailers required to ramp up operations to keep customers nourished and healthy in their time of greatest need. Dealing in products and services ranging from basic to upper end food and furniture, to pharmaceuticals and financial services, Shoprite is the largest fast-moving consumer goods retail operation in Africa, all-encompassing shopping experience catering to customers’ needs.

© Shoprite

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LEADING THE FIGHTBACK As the coronavirus spread through South Africa, the Shoprite Group quickly put together a comprehensive action plan forming the core of its response.

It was informed by the critical plans and safety measures put forth by both government and international health authorities, while simultaneously protecting its employees, customers and communities.

“Although it was an incredibly trying year for all of South Africa, the Group worked hard to minimise the impact of Covid-19 and to continue innovating at pace,” the company states.

“The group proudly retained all of its employees’ jobs and fed millions of hungry people.” The launch of virtual vouchers came just two weeks after lockdown’s announcement, enabling tens of thousands of South Africans to reach out and help fellow citizens with economic struggles.

The group later teamed up with Mr D to deliver medicine to its MediRite

// OUR FOCUS ON COST-EFFECTIVE OPERATIONAL PERFORMANCE HAS PAVED THE WAY FOR US TO CONTINUE EXPANDING // pharmacy customers. “Getting medicine to those customers who are unable to leave their homes is one of many solutions we continue to roll out,” declared deputy CEO, Joseph Bronn.

“We continue to work day and night to keep our shelves stocked and our customers and staff safe.”

Shoprite’s employees’ invaluable role in these critical efforts has been recognised by the group at every turn. Most recently, as the third wave of Covid-19 ravaged, the group called on government to allow its employees, serving over 25 million people a month, to receive vaccinations urgently. Prioritising its frontline workers, Shoprite offered to source and administer the doses at its own cost, through its significant logistics and pharmaceutical infrastructure.

“Our frontline workers, including cashiers, merchandisers and line management retail workers, have been at work every day since the onset of the pandemic, working tirelessly to ensure we provide food, essential groceries and medicine to the nation,” announced CEO Pieter Engelbrecht.

“We strongly believe that they should be prioritised and we are ready to roll out vaccinations on behalf of government to our employees who continue to go the extra mile in challenging conditions to keep serving customers. We are prepared to play a role and foot the bill, and we can ensure it will happen rapidly.”

The Group has also thanked its employees for pushing through the

INDUSTRY FOCUS: RETAIL

latest set of trying conditions, working around the clock to re-stock and rebuild affected stores in KZN and Gauteng where unrest has erupted. “While we have been affected by the violence, looting and vandalism,” the group said, “we are doing everything in our power to restock shelves as quickly as possible.”

SHOPRITE OLD AND NEW “Our focus on cost-effective operational performance has paved the way for us to continue expanding,” Shoprite delineates, while June saw the opening of Shoprite’s 40th supermarket in Zambia, at Ndola’s Jacaranda Mall. More than 25 years since it first brought Zambia the pinnacle in shopping Shoprite now occupies 112,000 m² of trading space, employing almost 10,000 people.

“The opening of our 40th Shoprite supermarket in Zambia is a very special occasion,” stated Charles Bota, General Manager of Shoprite Zambia. “Over the last 25 years, we’ve worked hard to

© Shoprite

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bring the people of Zambia competitive prices and the freshest produce in the most convenient locations.”

More than half of Shoprite Zambia’s employees are women, while 80% of jobs are occupied by those aged 25 to 35 years. Shoprite Group has spent more than R700 million in the past five years to enhance the career options of South

Africa’s unskilled and unemployed youth, training 24,308 people in its own Retail Readiness Programme and providing 5765 young people with access to the Youth Employment Service (YES) programme.

“All of these initiatives are aimed at training and upskilling people not previously employed by Shoprite and

SHOPRITE

are focused on helping unemployed youth gain the skills they need to secure jobs in the retail industry,” the company outlined.

“Upon successful completion of the programmes, learners are offered the opportunity to join the Shoprite group.” Current absorption rates are 53% and 32% from the Retail Readiness Programme and YES programmes respectively, as the nation’s youth seizes the chance to jump aboard the recently-crowned 2021 retail Employer of Choice at the South African Graduate Employers Association (SAGEA) Employer Awards.

TOP OF THE PILE Two astute senior appointments have seen experienced accounting professionals and board members Nonkululeko Gobodo and Linda de Beer join the Shoprite board as independent non-executive directors.

De Beer is a chartered accountant with extensive experience as an independent nonexecutive director, on the boards of Aspen, Momentum Metropolitan Holdings and Tongaat Hulett.

“Well-governed companies are the success stories that give confidence in our country and its markets, which is very important for foreign investment,” she remarked. “They form the backbone of value creation for everybody including shareholders, employees, suppliers, customers and the community at large.”

Gobodo, meanwhile, is a chartered accountant and pioneer in her field whose firm grew to become

// WE CONTINUE TO WORK DAY AND NIGHT TO KEEP OUR SHELVES STOCKED AND OUR CUSTOMERS AND STAFF SAFE //

© Shoprite

SizweNtsalubaGobodo (SNG), the largest black accounting firm in South Africa and fifth-largest overall. “This is a great opportunity for me to work with a group that has been going through major innovations in the last few years,” she commented, “committed to its purpose of feeding the nations of Africa and catering for all people, including poorer communities.”

It is exactly this constant innovation, which recently has taken the shape of the Shoprite Xtra Savings rewards programme and the new Money Market Account, that has allowed Shoprite to retain its position as South Africa’s low-price champion.

The latest Sunday Times Top Brands survey has made this official, as Shoprite scooped the highest accolade to be

voted Best Convenience and Grocery Store of the Decade.

“This acknowledgement is testament to us continually striving to better serve our customers and staying true to our dedication to bring them lower prices they can trust, always,” concluded Willie Peters, General Manager Marketing.

“It is wonderful recognition during what has been a particularly challenging year, and reflects the incredible work of our entire team to ensure we keep our customers happy.”

WWW.SHOPRITE.CO.ZA

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ASPEN PHARMACARE

Vaccine Manufacture is a

Monumental Moment for Africa PRODUCTION: Benjamin Southwold

A 160-year heritage as a global specialty and branded multinational pharmaceutical company, Aspen Pharmacare is one of South Africa’s largest and most important enterprises.

Now it is making its expertise across multiple product types count more than ever before, as delivery of its first Johnson & Johnson doses sees an African-manufactured Covid-19 vaccine finally delivered to South Africa, already rolling into arms throughout the continent. www.enterprise-africa.net / 57

INDUSTRY FOCUS: MANUFACTURING

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Vaccines have long been hailed as a crucial, if not the fundamental, aspect of stopping the spread of Covid-19 in South Africa. They offer vital protection at both an individual and also a population level, reducing the risk of infection or the severity of symptoms.

“Vaccination is a safe and effective way to prevent disease and save lives,” the South African government states plainly. “When we get vaccinated, we do not just protect ourselves, but also those around us.”

A priority in the fightback against the spread of Covid-19, a vaccination programme is nonetheless

// IT WAS A MAMMOTH EFFORT FROM ALL THE TEAMS INVOLVED TO ENSURE THAT THERE WAS AN AFRICAN RESPONSE TO THE PANDEMIC //

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an incredibly logistically complex procedure to execute, particularly at the speed required of the endless waves of the pandemic. South Africa’s has been hampered by almost every factor imaginable, including delays in the global race for procurement, uncertainty around efficacy and access challenges.

A LANDMARK COUP News in December that Aspen was to join the vaccine rollout as a contract manufacturer for Johnson & Johnson (J&J) was greeted with jubilation across the nation, and its involvement has been integral in helping the nationwide process to gather pace. “We’ve worked very closely with J&J to complete a tech transfer in record time, which is kudos to us both,” begins Aspen’s Group Operating Officer Lorraine Hill.

“J&J freely gave resources, knowledge and time to ensure that we could adequately transfer the vaccine.

Once the widely publicised setbacks regarding the Emergent issues had been overcome, we have been able to commence manufacture and it is beginning to pay off and give J&J more stock to distribute.

“We receive the drug substance from J&J, and then do the full formulation, fill and finish in Gqeberha, before packing and freezing it prior to collection by J&J from the factory.”

These first J&J doses of the Covid-19 vaccines packaged at its Gqeberha plant were released by Aspen at the end of July. “This represents a significant landmark for South Africa and the African continent,” commented Stephen Saad, Aspen Group Chief Executive, “as these are the first Covid-19 vaccines to be produced on the African continent by an African producer for South African and African patients.”

The release of the doses is a huge boost to the local vaccination drive and marks a huge step forward in ensuring that Africa can address its healthcare priorities, with these the first set of jabs manufactured locally from active pharmaceutical ingredients (API) imported from Europe. “It has started rolling into people’s arms now,” Hill proudly states.

South Africa has placed an initial order for 30 million doses, which earlier this year President Cyril Ramaphosa said will increase to 400 million. No plant in South Africa has produced a vaccine

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INDUSTRY FOCUS: MANUFACTURING

itself in 25 years, and demand for the vaccine could never have been met in the time it would take to build such capacity. Instead, J&J is producing the vaccine at three existing plants and shipping it to just six centres across the world, one of which is Aspen’s Gqeberha factory.

“This is a real watershed moment,” Hill confirms. “There simply hasn’t been the capacity and capability in Africa before now, and for us to be able to use some of the investments that we have put in place and work with J&J to maximise that capacity so quickly is a really massive achievement on both sides.

“Our line capacity is 300 million doses, which is on track and running well.

It was a mammoth effort from all the teams involved to ensure that there was an African response to the pandemic.”

WORLD-CLASS FACILITY The massive investment plunged into Aspen’s manufacturing facility has been an ongoing process, initiated back in 2019 at the time of its purchase of GSK and AstraZeneca’s anaesthetics portfolios. “The shortage of sterile capacity then started to become

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evident,” Hill delineates. “Not a lot of sites globally have the completely modernised capacity, like ours, with the latest isolator technology.

“It was fortuitous for us that we had already started the build of this fully certified sterile injectables facility at our existing site, from which our teams have tirelessly worked to optimise production of J&J’s Covid-19 vaccine for Africa.”

Stephen Saad added: “We are actively seeking opportunities to further extend and capacitate Covid-19 vaccine manufacturing at this world class production facility. Aspen is seeking to play a meaningful role in contributing to the objective of delivering the majority of Africa’s needs from production sites located in Africa.”

Aspen has invested over R3 billion in the Eastern Cape-based facility to date, the single largest investment in the pharmaceutical industry in South Africa. It was subject to the highest praise in the run-up to the historic vaccine delivery, as President Ramaphosa relayed the findings of his personal visit.

“This is a world-class vaccination manufacturing facility which ranks

// THESE ARE THE FIRST COVID-19 VACCINES TO BE PRODUCED ON THE AFRICAN CONTINENT

BY AN AFRICAN PRODUCER FOR SOUTH AFRICAN AND AFRICAN PATIENTS // among the best on the planet,” he effused. “It is a great achievement for South Africa and demonstrates our capabilities in advanced manufacturing.

I wish to commend Aspen for having had the foresight to invest in this facility and for the speed with which they have readied themselves for production.”

The facility will have no shortage of demand any time soon, Hill predicts.

“The issue will not be available capacity, but we will face decisions on when and where to increase it. The vaccine may require boosters, or indeed a different

ASPEN PHARMACARE

vaccine entirely could be needed.

“The supply chain could go in any direction and we will work closely with J&J to align with their forecasts. Looking at Germany and Hungary, who have just rolled out boosters, it is clear that in the short to medium term there will still be a lot of demand for vaccines.

“We are working on a number of initiatives that will either fill the gap left by the vaccine or that will drive extra capacity when required.”

POSITIVE INTERIM IMPACT Aspen has succeeded in maintaining uninterrupted operations throughout these most extraordinary of times, including at its 15 manufacturing sites, as robust business continuity plans and the customary resilience and commitment of its nearly 10,000 employees have come to the fore.

“This has enabled us to continue to supply our medicines to patients in need across the world,” the company notes, “and to make an important contribution in assisting to combat the effects of the virus.” It has had another equally positive impact, with the group reporting revenue growth in its interim results at the close of 2020 of 17% to R18.6 billion, following 12% and 36% increases

by Commercial Pharmaceuticals and Manufacturing respectively.

“The business has proven to be in robust shape over the past six months,” Saad summarised. “We persevered with the build project to increase our sterile capabilities and capacity, we began the transfer of our Anaesthetics products to Aspen sites and remained steadfast in our commitment to patients and customers.”

Hill is equally confident. “We have a number of initiatives aside from our valuable vaccine work underway, and the December results show that the underlying strategy and the delivery are in great shape,” she states. “People recognise that we are here for South Africa, and we can transfer what we are achieving here to many other countries.

“We always rise to the challenges as they crop up in South Africa and find real solutions to enhance the people and the continent. The world has learnt to cope with Covid now; countries are not completely shutting down and it is no longer paralysing. It will certainly not stop us continuing to deliver.”

WWW.ASPENPHARMA.COM

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FIRST EQUITY

Gearing Up for

Post-Pandemic Take off PRODUCTION: Timothy Reeder

Insurance in South Africa, and the continent as a whole, is one of very few sectors coming through the Covid-19 pandemic in relative good health. For first Equity Insurance Group, spread was no longer a word to dread, as its diversity of portfolio across multiple regions, sectors and sizes of business helped it absorb the shockwaves, refine its practices and continue to grow.

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With many sectors across South Africa retaking their first tentative steps after the disarray wreaked by the Covid-19 pandemic, insurance is one of a lucky few to be poised for growth. A recent report by McKinsey and Company positions Africa as “one of the world’s hot regions for insurance,” second only to Latin America for rate of insurance growth globally and with the potential for prodigious development.

Times of unrest and crisis put insurance at the forefront of a nation’s thinking, and any disruption to consumer and commercial spending caused by the epidemic expected only to delay, rather than alter, Africa’s insurance growth pattern. South Africa, the largest and most established

insurance market, holds 70% of premiums on the continent.

Founded in 2006, now with 16 offices in nine countries around Southern Africa and the Indian Ocean islands, first Equity is no stranger to disruption, established to shake up what it called a jaded sector, lacking innovation and professionalism and highly concentrated on a handful of a multi-nationals. “first Equity was founded with the express intention of creating a credible South African alternative to the few major players in the corporate and commercial short-term industry at the time,” the company details, “and challenges the status quo of insurance broking in South Africa.”

ROBUST RESPONSE This novel approach and abundance of experience has earned first Equity a reputation for top-quality, individually tailored customer service and is one in its three-pronged approach to sustained growth and success.

To be able to continue to deliver it seamlessly, without interruption, has been as crucial as it has been impressive to witness.

“There are likely a number of elements behind our ability to adapt in the wake of the reverberations of the pandemic,” Chief Operating Officer Kevin Watson details when pressed on first Equity’s apparently effortless negotiating of the hurdles put in its path. “One important aspect

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INDUSTRY FOCUS: INSURANCE

is that the very nature of our business itself happened to lend itself well to a smooth transition to working from home, which we were already very well set up to do.

“Like most, this meant a slight change in culture for us especially in terms of our people management, but it actually worked very well and in fact we found that people were engaging in dialogue more even than when based fully in the office.

“This is one way in which we have really benefited from such a brutal shock to the system, as we are finding that staff are much more motivated and happy as a result of being able to spend more time at home and gain greater flexibility. We have noticed a profound uplift in wellbeing, with positivity much higher overall.”

With staff wellbeing assured and a swift shift to a new way of working

// WE WANT TO BE THE BIGGEST HOMEGROWN INSURANCE BROKING GROUP IN AFRICA // accomplished, it was first Equity’s diversity of operations which then helped it navigate the tumult of this epoch. “On the client side, we represent a number of different sectors and countries within our group,” Watson explains. “In most cases there has been a fairly negligible impact, really, and most people have kept their existing insurance going even if they might have delayed any new purchases.

“Even in the SME space our client base has also been amazingly resilient, where so many smaller businesses have struggled over the last year and ultimately closed.”

Watson describes how crucial this massively diversified spread of clients and services has been in keeping the

CHIEF OPERATING OFFICER KEVIN WATSON

64 / www.enterprise-africa.net

group growing. “We have real mix of every sort of insurance in the group,” he reveals. “Having a diversified portfolio of industries and clients of different sizes, looking after both businesses and individuals, has helped stabilise the downturn of certain industries and means that we can manage the ups and downs to come out healthy in the end.”

TOURISM’S TRAVAILS This is especially true considering that 30% of first Equity’s business comes from tourism, whose operations and profitability would be near the top of a table of those hit hardest by the pandemic’s consequences.

“A large proportion of our companies fall within the tourism insurance value chain, either providing products or acting as specialist brokers,” Watson says.

“Clearly the covers in place did not factor in an epidemic like this, and things like the business interruption claims which have arisen have been particularly tricky. To get them paid, our broking and claims teams have been the conduit between insurers and clients which have included, as an industry, ongoing legal battles and lengthy clarification and negotiation which, while necessary, has been very time-consuming.”

Tourism is some way off full recovery yet, of course, and for some the consequences may well prove unassailable, Watson details. “In our tourism space, I would say that around 15% of our clients have simply closed their doors. Whether they will return when tourism is back to full strength remains to be seen. Even those that have stayed in business have reduced their premiums to the bare minimum.

“The tourism business has been hit hard and hasn’t recovered as quickly as we would have expected, but we know

FIRST EQUITY Bryte_Enterprise Africa feature.pdf

that this will turn,” Watson reasons.

“There is still a lot of uncertainty out there, but we are very confident that 2022 will see an upswing.

“We have reorganised ourselves and looked closely again at our cost base and efficiencies. We hear daily about the amount of pent-up demand for travel around the world. This boosts our confidence in a strong return for the sector and our clients, which should lead to insurance premiums normalising.”

The oldest of all the businesses in first Equity’s group is SATIB Insurance Brokers, on board for more than 30 years and itself an industry leader in all aspects of insurance for the tourism, leisure and hospitality sectors across Africa. “SATIB took another hard hit,” Watson admits, “but we have again been able to use this opportunity to restructure and look at the business introspectively, so that when the revenue returns we will be in even better shape to provide bespoke products and services to the industry.”

STRATEGIC ACQUISITIONS “We have remained resilient throughout,” Watson sums up, “and have looked at our business model and made big changes. We have focussed a lot more on digitising and making the experience for our clients that bit better, and our staff are probably happier now than ever before.”

First Equity’s aim has never changed, Watson explains: “We want to be the biggest homegrown insurance broking group in Africa. A lot of our big competitors are overseas-based, but we want to be the African leader. There is massive opportunity for GDP growth on the African continent.” To achieve this, the group’s central tenets of quality service through innovation and digitisation are bolstered by a powerful acquisition strategy.

“We are also constantly on the lookout for opportunities to merge, acquire or work with the right partners, as the third of our key growth

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strategies,” Watson details. “This works alongside our drive to fashion bespoke products which respond to the risks of certain key niches, in a way that is different to the commoditised offerings already out there.”

These acquisitions have even been made to happen as first Equity has shored up its current business, Watson tells us. “We have just acquired Sencerus Insurance Brokers, and another called Axcion Administrators, building on further smaller deals last year. We are talking to a number of others while continuing our investment in new platforms and technologies to streamline brokers’ workloads. Watch this space over the next six months as we conclude the acquisition of and launch a digital platform which we believe is a world first.

“There is a huge amount going on for us, despite the world’s troubles at the moment,” Watson concludes, with first Equity having taken every opportunity to reshape and rethink, ready for a resumption of a normalised world.

“There is a real sense that we are all in this together and we are going to pull through, and we are in perfect shape to take advantage of the inevitable uptick. Now that we have hopefully seen the bottom, we personally are only going to pick up and move forward from here as the world begins to get moving once again.”

WWW.FIRSTEQUITY.CO.ZA

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ADUMO

Digital Payment Solutions to

Accelerate Growth and Change PRODUCTION: Timothy Reeder

South Africa’s largest independent payments processor, Adumo is leading the way in the South African transition to digital transactions. Backed by a wealth of expertise across its suite of service providers, and attracting significant investment all the time, CEO Paul Kent outlines how Adumo is unlocking payment potential across the nation.

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Processing in excess of R80 billion in transactions every year across more than 50,000 active clients, and with 90,000 active card machines dotted across 13 African countries: this is Adumo. “We are not a bank,” Adumo makes clear, “we are South Africa’s largest independent payments processor trusted by retailers across Africa.

“Whether you are a large multi-national, independent retailer, entrepreneur or informal trader, we have the technology and expertise to help you grow and expand in an everchanging environment.”

A COMPLETE PACKAGE More than just payment solutions, the company’s expertise allows it to make smart payment acceptance decisions tailored to each client.

“Our ecosystem offers working capital requirements, consumer engagement platforms, business support solutions, an in-store consumer credit platform, retail point of sales software and hardware, customer analytics, electronic voucher distribution

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and private label card issuing, all from a single provider,” Adumo says of its allencompassing offering.

The company brings together a number of powerful brands under its umbrella, each offering serval key elements. Humble, for example, is a proudly South African, cloud-based all-inone point of sale, payments, e-commerce and loyalty solution, while SwitchPay is an Alternative Payment Platform that merchants can activate consumer credit

offerings in-store and online.

Among this vaunted conglomerate of individuals, one that stands out in particular is Sureswipe, an award-winning fintech company featured by Enterprise Africa back in 2019 when Adumo’s CEO Paul Kent was still MD. “Sureswipe reached a point in a such an exciting, high-growth market where it attracted attention from numerous bidders at the same time, one of which was Crossfin,” Kent says of Sureswipe’s evolution.

CEO PAUL KENT

INDUSTRY FOCUS: FINTECH

“Crossfin had some great assets in its business which very much complimented Sureswipe, and made a joint bid with an international private equity firm Apis Partners that had great exposure to capital markets and expertise in our sector round the world.” This exciting combination of partners catalysed the formation of what we now know as Adumo, Kent explains.

“We rebranded in 2020 to Adumo, and are now structuring to have different businesses within the brand that focus on different segments of the market. We take a client-centric approach to the business structure, as opposed to being centred around products and build our payment solutions to fit the client from informal traders to multi-lane, multistore, enterprise customers.”

Sureswipe deals largely with formal SME retailers needing basic payment solutions, perhaps with loyalty programs, while established company iKhokha is unlocking the high growth small, micro and informal-enterprises.

“Most of Sureswipe’s customers are coming away from the banks, seeking better prices, service and solutions, while iKhokha’s business is primarily retailers accepting card payments for the first time,” Kent indicates. “iKokha’s belief is that every South African entrepreneur should be given the opportunity to compete in the digital economy, and we aim to give them the tools to do just that.”

A CHANGING LANDSCAPE Onto these founding businesses Adumo has continued to expand and re-structure around this firm client-

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centric approach, as multitude factors align to accelerate the adoption of digital payments in South Africa.

Traditionally a cash-driven society, it has registered a clear and sustained shift toward electronic payments over recent years, with card payments expected to rise by 7.6% to reach R1.4 trillion in 2021 according to GlobalData.

“The combined efforts of the government and financial institutions to boost financial awareness through the launch of financial literacy programs, the provision of basic bank accounts, as well as the expansion of payment card acceptance among retailers supported this growth,” clarified Ravi Sharma, Lead Banking and Payments Analyst at GlobalData. “Though the Covid-19 pandemic has impacted consumer spending, it has also highlighted the importance of noncash payment methods, pushing the use of card payments in the country.”

The cashless preference for payments has soared in South Africa during the pandemic, with an increasing number of consumers and merchants embracing digital channels for their purchases. To further encourage the shift away from cash, banks in South Africa nearly tripled the limit for contactless card payment without the need of a PIN, from R200 to R500.

Adumo’s offering has evolved to match this trend. “We now have omni-channel solutions for both the SME and medium enterprise segments,” Kent says, “and our one of our acquisitions of this year was of Wirecard South Africa, now Adumo Online, which means we now have e-commerce solutions for the online-only merchants, too.

“We have developed a broad range of payment-led solutions for each different market segment,” Kent summates, citing the acquisition of GAAP, a specialist point-of-sale software company for the hospitality industry.

ADUMO

“This move has allowed us to really deep-dive into a specific vertical of the food and beverage, or hospitality, market,” he continues, “as it gives us the software to run and operate a restaurant through to payment solutions and loyalty platforms, even access to credit. It is further evidence that payment-led solutions, when understood at a vertical or sector level, can support and grow businesses, as we are doing with hospitality.”

INSTITUTIONAL INVESTMENT Apis Partners and Crossfin are Adumo’s original institutional shareholders. Both with deep expertise and far-reaching relationships, investing in high-growth, capital-light financial services and focussed on solving everyday pain points not addressed by existing products. “Together we look to acquire or partner with innovative companies that solve everyday problems to accelerate growth,” Adumo states.

In March this year, the investment pair was joined by a third, with World Bank Fund member IFC bringing in a massive raise of $15 million. “This will be crucial to our further acquisitions and growth opportunities we see in our market,” Paul Kent recognises.

The investment will increase access to digital payment solutions for small and medium-sized businesses in several countries in Africa, and support Adumo to make their adoption more affordable and accessible. “Through this investment in Adumo, we will be helping small businesses tap into the digital economy, which is more important now than ever before,” said Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa.

Over 50% of South Africa’s workforce is employed by micro, small and medium-sized enterprises, which in turn contribute around 34% of GDP, and access to digital and mobile payment solutions is paramount to increasing footfall and improving customer retention by supporting the transition away from cash-based transactions.

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“The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an alltime high,” reinforces Kent. “The funds we have raised from our new equity partners will help us roll out new payment innovations and purposebased lending services to support consumers and retailers as they navigate an uncertain 2021.”

While slightly disruptive to Adumo’s initial five-year plan, Kent admits, the pandemic has really only really caused Adumo to react, and perhaps expedite the execution of important objectives.

“Because of the strong leaders and cultural alignment across the different businesses, we have been able to seize the opportunities which have been presented.

Acquisitions, for example, probably came in

quicker than expected, and all aligned with the plan we put together at the outset.

“We think we are in a place now where we can reshape and change the payments environment in South Africa for the benefit of all stakeholders,” Kent closes. “We will push regulatory change over time, and keep improving the alignment of our own businesses to best open up the potential they possess.

“We want to be known as experts in payments, but we are building customer-centric solutions that go beyond the one-size-fits-all approach.

As the payment world develops we are structuring our business to give solutions which are valuable, easy to operate and less complex.”

WWW.ADUMO.COM

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CONCOR

Concor Builds Back

and Builds Better PRODUCTION: Karl Pietersen

As one of the leading tier-one construction contractors in Southern Africa, Concor has had the adjust and adapt to bounce back following the lockdowns that came as a result of the Covid-19 pandemic. Now, the company is busy with several major infrastructure projects that will change the face of South Africa, and will enhance the life for individuals and communities that surround them.

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INDUSTRY FOCUS: CONSTRUCTION

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Complex, technical, intricate, multifaceted construction and engineering projects are today heavily sought after in Southern Africa. The few remaining tier-one construction industry players have had to reinvent themselves to remain relevant and feasible. Following the 2010 FIFA World Cup, when South African construction firms boomed, the industry has been decimated by lacking demand, corruption, liquidation and general market sloth.

But when the big projects go to tender, there remains a group of reliable and sustainable companies standing ready to serve the market, and the country.

At the top of this list is Concor.

With a long history in SA, Concor serves the construction industry and the mining services space through two separate business platforms. Offices across South Africa, Botswana and Namibia, the company’s presence is almost unrivalled and CEO Lucas Tseki is brimming with confidence as a strong project pipeline is continuously growing with exciting mega projects.

“The industry in South Africa has been in a state of decline since the 2010 World Cup programme,” he begins. “We saw huge activity around improvements of our highway infrastructure, we saw the construction of the famous Gautrain infrastructure, and this was all in preparation for

// WITH THE DECLINE IN EXPENDITURE AND SHRINKING GDP IN SOUTH AFRICA, WE HAVE HAD TO MAKE TOUGH DECISION IN THE LAST FEW YEARS TO ENSURE THAT CONCOR IS VIABLE AND SUSTAINABLE // 72 / www.enterprise-africa.net

the 2010 World Cup – not only spend from the public sector, but also a significant drive from the private sector. Unfortunately, since 2010 and the 2018 credit crisis, the Southern African economies have been in a state of decline. The construction sector has shrunk dramatically and some of the household names, large key competitors of Concor, no longer exist.

The changes have been significant because of the loss of these large construction companies in South Africa. With that, we’ve started seeing in the emergence of second-tier and third-tier players in the market who are looking to redefine and compete with the large, established first-tier players.”

Companies from the various international markets have also targeted Southern Africa as part of a growth strategy. Multinational construction firms from Turkey, China, India and more have set up in SA, looking for market share.

“With the decline in expenditure and shrinking GDP in South Africa, we have had to make tough decision in the last few years to ensure that Concor is viable and sustainable. These tough decisions have been taken to defend our balance sheet and protect the infrastructure in the business. We have taken out a lot of overheads and a lot of work has been done, making the business look materially different to what it looked like seven years ago,” details Tseki.

The Concor brand has been refreshed and a new energy is being injected to the business as it looks to modernise and grow. “We are looking at digitisation and technology, and we are looking to promote and spend time with younger engineers to deploy modern methods of doing things. Whether that is using modern methods or modern building materials, or focussing on sustainability, we are now very different to what we looked like years ago. The industry is more competitive and margins are under pressure,” admits Tseki.

// OF THE 23 WIND FARMS THAT HAVE BEEN CONSTRUCTED IN SOUTH AFRICA TO DATE, WE HAVE COMPLETED THE CIVILS AND BALANCE OF PLANT WORK FOR TEN OF THOSE, DEMONSTRATING OUR MARKET SHARE IN THAT SPACE // MEGA PROJECTS Currently, Concor is active across multiple sites, undertaking construction work which sits alongside some of the world’s most impressive projects in roads, buildings, infrastructure, and power and energy. In Gauteng, work continues of the impressive Oxford Corner complex, home to office, retail, hospitality and other buildings. In KZN and the Eastern Cape, Concor is busy with two flagship bridge construction mega projects. In the Western Cape, the Paarl Rock build of 266 apartments at the 22-hectare Conradie Park development is underway. In the Northern Cape, Concor continues with important, detailed civil work on the site of the MeerKAT telescope. Across all other provinces, teams continue with vital infrastructure work that is improving South Africa.

Tseki is extremely excited about the work on the N2 highway which will drive new life around the eastern and southern coast.

“We are well-known in South Africa for delivering large complex bridge projects,” he smiles. “The Msikaba Bridge project will be the longest cable-stayed bridge ever built on the African continent. It’s a beautiful bridge

CONCOR

and is a very important project for SANRAL. In the execution of complex infrastructure projects, we believe we are very competent and very capable in southern Africa, and our abilities are comparable to none – our credentials speak for themselves around these large complex projects.”

Built by a Concor-MECSA (Mota Engil Construction) JV, the bridge will form part of SANRAL’s Wild Coast project. Currently, work on the approach roads and the significant pylon foundations and anchor blocks for the bridge are under construction.

The bridge deck will sit at 194m above the valley below and will use 43,000m3 and 2700 tons of structural steel. On completion, Msikaba will come in as the third highest bridge in Africa.

“This is a crucial component in the new N2 highway that will connect KZN with the Eastern Cape, bringing together the major trading hubs within our Eastern Coastal line, reducing drive time between important economic hubs by three hours. The opportunities that will arise off the back of this project will be very large,” says Tseki.

However, not one to rest on laurels, Concor was quick to reach out for a new tender within the Wild Coast project, pricing for the Mtentu Bridge project which will eclipse Msikaba and will, when complete, become the tallest bridge on the continent at 223m high and 1.3km long.

“This project was initially awarded to the Aveng and Strabag JV but immediately after site establishment, they were unable to manage the extremely challenging community dynamics and declared force majeure, abandoning site. SANRAL put the tender out again following functional and technical evaluation and Concor’s price was opened, demonstrating our prowess for packaging large complex projects. It is a R3.5 billion project and is classed as a mega project in South Africa. This will probably be the largest mega bridge project starting this year in the Southern Hemisphere.

“We experienced the same community challenges with people in that part of our country, but our differentiator was our ability to enter into a viable and mutually respectful relationship with local communities where we look to integrate the community as not only spectators but as contributors who play the biggest role possible in the delivery of our projects. We go out of our way to ensure that our host communities find a way of being empowered through our projects.

Whether it’s education or enterprise programmes, we make it our business to focus on community dynamics and positive involvement,” details Tseki.

BUILDING THE BEST In Rosebank, Concor’s ongoing work at the Oxford Corner precinct has been lauded as industry leading following

the successful build of the BP Southern Africa HQ and a new Radisson RED Hotel.

“Right now, we are working with a longstanding customer called IntaProp on an office building,” says Tseki.

“This project demonstrates our core commitment as Concor around project delivery excellence and delivering value to our clients. We partner with our clients as a solutions provider and not just another contractor out there in the market. We have completed a number of buildings in the same precinct for this client. We completed the BP building, we completed the head office for Life Healthcare, offices for Arup and Sony Music, and we did a number of ancillary buildings as well.”

The Ikusasa office block at Oxford Parks will be completed by January 2022. The four-storey building will be constructed on three basement levels of

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INDUSTRY FOCUS: CONSTRUCTION

approximately 10,326m2 and will have four office levels totalling approximately 7555m2 GLA. It is anticipated that some 814 ton of rebar and some 8707m3 of concrete will be used in the construction of Ikusasa.

“The new building will be owned

by IntaProp and the tenant will be Anglo American. It is really important for us to partake in, and be associated with such world class projects where we are not only working for a world class developer but we are putting up facilities that will be used by world leading companies.”

World leading scientific projects are also within the Concor remit and, proving it’s adaptability, the company is altering its approach to work in challenging conditions to assist in the build programme of the international MeerKAT and SKA telescope project.

“The unique aspect about that project is that it’s a design and construction opportunity and this is the initial phase of the greater development that is being done around the MeerKAT programme,” explains Tseki. “We are in a partnership with Zutari (formerly Aurecon) as the design partner, and we are in partnership with OptiPower as the electrical contractor. It’s a very exciting opportunity which we secured through an open and competitive bid process. We competed against other South African construction firms as well as international firms who quoted on the opportunity.”

In the future, the larger SKA project will be under construction until 2050 with major activity across the Northern Cape.

“We believe that participating in this initial phase will position us well for meaningful participation when future

phases are being rolled out, when hundreds of millions of dollars will be spent on this project. It’s exciting and it is the largest telescope project globally.

For us as Concor to be participating in a project, that is being driven by global scientists and subject matter experts, as an infrastructure partner is really exciting and talks about our core competencies and capabilities.

“We are putting up access roads into the facility and 24 foundations structures for the satellites that will be installed. This is a project that will last just over one year but we believe future projects will allow us to remain on this site for many years,” says Tseki.

The challenge here comes in the form of technology usage available on site. The radio telescope technology is highly sensitive to noise and electrical signals. The equipment has already been used to detect new galaxies in the far reaches of space. So, construction tools on site have to be quiet and simple. Even cell phone signals can disrupt the environment.

// AS AN INFRASTRUCTURE ENGINEERING CONSTRUCTION COMPANY, IF YOU ARE NOT PLACING ONE BRICK ON TOP OF ANOTHER, OR YOU ARE NOT POURING CONCRETE, YOU ARE NOT EARNING – IT IS A SIMPLE BUSINESS MODEL // 74 / www.enterprise-africa.net

“Typically, we would use vehicles packed with electronics but on this site, it would interfere with the space observation activity, so we are having to use older equipment – vehicles that would have been used in the 1920s. We are not allowed cell phones, modern vehicles or modern equipment that would interfere with the electronic signals on the site – there are certainly unique aspects about this project that really excite us.

“It does impact productivity as you have to use specific methods to successfully and safely do the construction work and still make a profit,” enthuses Tseki.

POWERHOUSE In the energy industry, Concor is also busy growing the generating capacity of South Africa, by assisting in the construction of new wind farms, amongst other projects.

Jeffreys Bay, Noupoort, De Aar, Loeriesfontein, Perdekraal East, Excelsior, Golden Valley, Kangnas, Roggeveld and Khobab are large developments that have, combined, added more than 1000MW to South Africa’s grid. Smaller contractors simply do not have the expertise and scale to rollout projects requiring this level of detail alongside other major jobs.

“Looking at the projects we are working on in the energy space,

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INDUSTRY FOCUS: CONSTRUCTION

particularly renewable energy, of the 23 wind farms that have been constructed in South Africa to date, we have completed the civils and balance of plant work for ten of those, demonstrating our market share in that space.

“We completed a lot of projects during round three and four of the government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and we expect to be involved in Round five later this year. This is a very important space for Concor,” says Tseki.

Involvement in this sort of work forms a key part of the longer-term vision of Concor, something which Tseki has been pushing hard over his four-year tenure at the helm of the business. this is not a business with interim ambitions, Concor will add to its history of more than 100 years in South Africa.

“When we speak to our colleagues and the market, we say that we believe our core purpose is to positively impact mankind through the delivery of world class infrastructure solutions for the real purpose of enhancing the living and working environment. We are all about leaving a responsible footprint on this earth. We see ourselves as an

76 / www.enterprise-africa.net

important contributor to society around the delivery of world class infrastructure.

This could be education infrastructure such as schools or colleges, or health infrastructure like hospitals and clinics, or large complex solution such as road infrastructure, or even water projects such as dams and pump stations,” the CEO clarifies.

BRICK ON BRICK Unfortunately, Concor has not had the luxury of plain sailing over the past two years, with the Covid-19 pandemic obviously slowing project roll out and decision making. The initial lockdowns also hampered onsite delivery with staff forced to down tools.

“2020 was a watershed year in history and the impact of the Covid-19 will likely continue to interrupt society for years to come. Last year left no one untouched. The level of disruption, loss of health, and loss of loved ones was profound,” says Tseki, looking back.

“Within Concor, I continue to pay tribute to many of our people, partners, clients, and boards of directors who continue to provide support to us through these uncertain times. Throughout the last year we kept our projects operating because

of the sacrifices that were made by many of our people through additional time and effort, and by being physically present to deliver work that could not be managed remotely.”

The level of delay, cancellation, slowdown, and indecision by project owners cost Concor dearly, but important changes had already been implemented to ensure the business was agile enough to survive.

“As an infrastructure engineering construction company, if you are not placing one brick on top of another, or you are not pouring concrete, you are not earning – it is a simple business model,” insists Tseki. “In South Africa, we had hard lockdowns where we were not allowed to execute any construction works as we were not classified as an essential service.

For two months, we couldn’t earn any revenue and there was a direct hit on our revenue as an organisation, but we had to carry our overheads. That was a significant financial hit on our business.

The difficult thing is that there was a number of projects where Concor was already a preferred bidder. These were important projects that underpinned our business plan. Materially, all those projects have been indefinitely delayed

CONCOR

or cancelled entirely. That shows the huge negative impact of the pandemic in Southern Africa last year.”

He describes nightmare scenarios where calls and mails began rolling in from large clients with notices of cancellation. For example, the important expansion and modernisation work scheduled for South Africa’s major international airports OR Tambo and Cape Town. This R17 billon project was cancelled by Airports Company South Africa (ACSA) and the promised review is only set to occur in 2024/25. “This impact was certainly devastating,” says Tseki.

But with the vaccine rollout finally gathering pace across Southern Africa, there is some light at the end of the tunnel and, fortunately, construction is viewed as a remedy for ill economies.

“As much as the financial consequences of the pandemic have been so negative, the upside of it is that virus policy makers across southern Africa are pushing a concerted effort to utilise infrastructure SMEs as a mechanism to restimulate their economies.

“Towards the back end of last year and the beginning of this year, we have seen unprecedented tender activity from

government backed projects being put to the market. Right now, our estimating teams are totally inundated with enquiries and opportunities that we are responding to, to an extent that we had to bring in consultants and utilise other business partners in the market so that we could respond to this level of activity.

“It has been crazy to see this positive side coming out of the negative pandemic situation,” enthuses Tseki.

He remains concerned about the speed at which new projects, especially in the public sector, will be rolled out as the industry looks to repair damaged balance sheets as quickly as possible following an idle period. To maintain core competences and capabilities during times of inactivity is an expensive exercise. “The situation definitely seems to be turning around,” he says.

In the future, Concor is a name that will continue to be woven into the history of the country. Part of the Southern Palace Group of Companies, Concor has exposure and abilities that span the entire economic landscape of Southern Africa, and Tseki believes partnership building is the final, important element that sets the business apart from its competition.

“You could argue that what we are providing is a commodity in modern times. From a Concor perspective, we don’t believe that,” he says. “We believe there are specific differentiators.

Certainly, we are able to provide certainty around quality, on time delivery, and consistency – including large complex engineering projects which are very hard to deliver consistently on a global basis.

Our ability to partner hand-in-hand with our clients when delivering construction solutions is not something offered by all.”

With the tough post-2010 years behind it, the battle against Covid-19 seemingly swinging to the right side, and economic activity in the region picking up again (albeit slowly), Concor will continue building brick on brick and pouring concrete. For Tseki, the future is bright because the picture is clear.

“Large, complex, technically demanding projects is where Concor continues to dominate and where we continue to deliver better margins,” he concludes.

WWW.CONCOR.CO.ZA

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CT ALUMINIUM

The Essential Elements of a

Successful Recovery PRODUCTION: William Denstone

CT Aluminium is among South Africa’s foremost designers, manufacturers and installers of aluminium windows, doors and shopfronts. Last time we caught up, the company was toasting a long period of uninterrupted growth; a global pandemic has put a brief stop to this, but the company is returning to full strength in double quick time, according to Production Director Gareth Gilks. www.enterprise-africa.net / 79

INDUSTRY FOCUS: MANUFACTURING

//

Since manufacturing its very first aluminium products back in 2001, CT Aluminium’s combination of extensive technical expertise, outstanding project management and its state-of-the-art Western Cape manufacturing facility have seen it become the country’s go-to supplier of the most abundant metal on the planet.

Aluminium’s benefits are widely known, and its resultant popularity in both commercial and residential applications only continues to grow. It offers a long life, incredible resistance to the elements and is easily shaped so that design possibilities become almost boundless.

Easy to clean, strong and durable and an effective insulator, it is little wonder that this element is among the industrial pillars of the South African economy, where it is produced more than in any other African country.

SURVIVING SETBACKS “Providing a good product, with good service, all while being competitive,” is how, in 2019, Production Director Gareth Gilks explained CT Aluminium’s unbridled success, its humble beginnings at a Durbanville farm at the turn of the century belying the industry leader we see today.

“Since we moved premises in 2014, all we have done is grow,” he added. “We are now at a point where we need to stop growing so quickly and consolidate everything and streamline so that we can look at growth again.”

Two fairly catastrophic years on and it is difficult to foresee a time when any company will again be in a position to request a slow-down in business.

“The last year was not great, for obvious reasons, and was all about survival,” recognises Gilks of this vastly different industrial landscape. “The number one priority was the survival of the company

// WE REMAIN CONFIDENT FOR THE FUTURE // 80 / www.enterprise-africa.net

and the livelihoods of our staff.”

An early switch to survival mode and adoption of key new practices have allowed the business to keep running and instances of Covid-19 to remain absolutely minimal - just three, with none fatal nor operationally detrimental. “Upon re-opening after the initial five weeks of hard lockdown, the most important thing to do was implement strict protocols to avoid the spread of Covid-19 within the company,” Gilks tells us.

“Not only was the safety of our staff very important, we also knew that financially, CT Aluminium could not afford to close its operations again for two or even three weeks in the event of an internal spread of the virus.”

Even with this level of mitigation, the business still felt the effects of the pandemic. “The construction sector as a whole restarted quite slowly after the hard lockdown, with residential construction largely affected by delays in approval of building plans and a general shortage of building materials.

CT ALUMINIUM

“We have also had to absorb quite a few unprecedented price increases over various projects this year, making it difficult to be profitable, especially when are trying to claw yourself out of a horrible 2020.

“We pushed through, however, and as we entered the second quarter, we went on a drive to sell redundant machinery and equipment which were no longer adding value to our business,” Gilks says of the green shoots already beginning to show. “This has placed us

// SOUTH AFRICANS ARE RESILIENT. WE WILL KEEP ON PUSHING FORWARD, NO MATTER WHAT //

in a strong position going forward.

“We believe that we have negotiated the hardest part successfully and look forward to more stability as the number of orders increases.”

TECHNOLOGY INVESTMENTS PAY OFF The revenue from the machinery sales has been put to shrewd use, Gilks explains, funding one of CT Aluminium’s biggest technological investments to date. “We were able to use the proceeds from those sales to pay off what we owed on our SBZ628 and automated glass cutting tables in order to significantly reduce our monthly expenses.”

Currently the only one of its type in Africa, the revolutionary SBZ628 machine from Elumatec is a fully automated profile machining centre, presenting an enormous competitive

edge in terms of efficiency, labour and safety.

“Prior to the hard lockdown, we had been negotiating the purchase of a new DG104 double-header saw with Elumatec South Africa, which was concluded in June 2020 and installed in July,” says Gilks of the company’s further technological additions.

“It is programmed using Elusoft software and allows the operator to simply scan the barcode to activate the relevant machining program, meaning our manual cutting and machining department is now a semiautomated department.

“Whilst the majority of our profile machining is still done by the SBZ628, where that isn’t possible this investment has allowed us to increase productivity and significantly reduce waste in this department.”

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Levers & Locks was established in 2007 and, although relatively young, the company is steeped in history thanks to commitment from Jason Rod whose family started the concept of the ironmongery merchant showroom almost 50 years ago. That first showroom represented all major local brands, alongside imported door furniture, under one roof. This idea remains with the business today.

Decades of experience have helped Levers & Locks identify industry trends and new technologies. By dealing with each project individually and learning from each client, the company is constantly learning and growing.

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INDUSTRY FOCUS: MANUFACTURING

The installation back in 2019 of a new double-glazing machine has also had a hugely positive impact, Gilks continues. “Manufacturing our own double glazing in-house has greatly reduced costs and eliminated the leadtimes due to ordering double glazing

from external sources,” he explains.

“This means that we are more competitive when quoting on double glazed projects and are able to manufacture products faster by not having to wait for orders placed with suppliers. We are able to manufacture

// WE BELIEVE THAT WE HAVE NEGOTIATED THE HARDEST PART SUCCESSFULLY AND LOOK FORWARD TO MORE STABILITY AS THE NUMBER OF ORDERS INCREASES // 82 / www.enterprise-africa.net

the majority of our requirements and easily work around the units we have to outsource.”

POST-PANDEMIC POSITIVITY “We are currently busy with a few housing estate projects for some of our loyal and long-standing customers, who also have similar projects lined up for the near future,” Gilks responds when asked about the company’s current commercial concerns.

“We have also gained traction in the upmarket Clara Anna Fontein housing estate on the outskirts of

CT ALUMINIUM

Durbanville, having now completed a number of projects for six different contractors within the estate, and are currently in the tendering phase for an upmarket 10 storey apartment building in Newlands.

“This project is already underway,” Gilks clarifies. “If we gain the award, we expect to be on site before the end of the year.”

As well as a stuffed order book in more familiar domains, CT Aluminium is also lending its expertise to the vision for a greener future, a key aspect of its mission statement, in

the form of a pilot project alongside Sunwiwa South Africa. “The concept is to have a hybrid renewable energy solution, making use of solar and wind technology, connected to a battery system, to provide a constant supply of reliable energy,” Gilks outlines. “The current expectation is that this whole system should be able to provide about 90% of our energy requirements.

“The lack of reliable energy is still South Africa’s greatest hurdle for growth across all sectors,” Gilks adds. “This project is ongoing and we expect completion to be before the end of 2021.

“We remain confident for the future,” Gilks concludes, and his assurance appears extremely well-placed. “South Africa is a resilient nation and the construction sector itself is looking positive. Our order book is looking better than it has since before March 2020, when South Africa went into hard lockdown.

“I will say it again, South Africans are resilient. We will keep on pushing forward, no matter what.”

WWW.CTAL.CO.ZA

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FLSMIDTH

Cleaner, Greener

Building Blocks of Life PRODUCTION: William Denstone

FLSmidth is an international supplier of sustainable solutions and services to the global mining and cement industries. A long and distinguished history since 1882 is heading into a greener future courtesy of MissionZero, a monumental project to enable its customers to produce cement and process minerals with zero environmental impact by 2030.

//

Economic growth and urbanisation are driving increasing demand for cement and minerals in improved infrastructure, renewable energy options, electric cars and alternative energy.

“Minerals and cement are all around us,” FLSmidth points out, “and we play a key role in delivering sustainable productivity to the global mining and cement industries to support this.” The company is established around the globe and employs nearly 10,700 employees, spread across more than 60 countries.

“We are the market-leading supplier of sustainable technology, equipment, and service solutions,” FLSmidth declares. “Our core strengths and competencies are reflected in our market-leading technology, extensive product range, our ability to execute projects, and our unmatched services to mineral processing and cement plants worldwide.”

PRACTICE CHANGES PERCEPTIONS Its longevity and many years of experience is what Deon de Kock, President Sub-Saharan Africa, Middle East & South Asia, believes gives FLSmidth an enviable vantage point to see ahead of the curve and construct a brighter, greener future.

“We are a global supplier to the mining and the cement industry,”

de Kock outlines. “We’ve been in existence for over 135 years, so we have seen the signs of the times that have indicated that the green agenda, and green industrialisation, will become increasingly the reality for us and others in our space.”

The historic public perception of mining and cement is that of two major carbon culprits, he continues.

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INDUSTRY FOCUS: ENGINEERING

“We were under real pressure in the recent past, say 10 to 15 years ago, when people viewed mining and cement as the biggest contributors to pollution and to carbon emissions.

“Interestingly, though, if you consider the increased demand for electric cars, wind turbines or battery minerals - all of which are needed for the green transition - most elements require copper, cobalt, lithium or nickel and also cement used in the foundation of huge wind turbines which of course has to be mined and produced. Most of these commodities are actually in undersupply at present due to the high demand at this critical point in the transition.

“We provide sustainable productivity solutions to our clients so that they in turn can provide the copper, the battery minerals and the

// DRIVEN BY URBANISATION AND GLOBAL DEVELOPMENT PROPELLING THE NEED OF BASE METALS, WE ARE SEEING THE DAWN OF A STRONG UPWARD CYCLE FOR MINING // cement to drive the green agenda.”

This realisation of mining and cement working hand in hand with the green drive, has caused a big change of mindset across both the public and shareholders.

“The question is not whether we will process minerals or produce cement, because these are so vital to achieving the progress we all want,” de Kock affirms. “The question is how fast we can transition the industries to produce it in a sustainable and clean manner.”

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ZERO CARBON DRIVE With growing populations, a larger middle class, and a transition to greener energy, the demand for cement and minerals will only increase in the next decade. “A more sustainable future requires action from the industries,” FLSmidth sets out. “With MissionZero, we take the lead in bringing these industries into a sustainable future.”

Announced in November 2019, its pioneering sustainability programme aims to provide zero-emission technology to the mining and cement industry. “Of course, we have our own ambitions with regards what we want to do, purely as FLSmidth, in terms of our operations becoming carbon neutral,” de Kock says.

“MissionZero is our sustainability ambition, enabling cement and mining customers to move towards zero emissions, 100% fuel substitution and zero water waste by 2030. Mission Zero is our unique value proposition - we look at water preservation, reducing water usage and carbon emissions as well as alternative energy and fuel sources, in order to reduce the impact on the environment. Our mission is to provide sustainable productivity solutions.”

Over its lifetime, FLSmidth has gained an unparalleled reputation around the globe for innovative thinking, highly-advanced technology and immense process knowledge across multiple industries.

“Apart from the increase in legislation and external pressure on us to drive this new agenda, from our own perspective and ambition, we also want to utilise our technology, experience and resources

FLSMIDTH

to create something as important as MissionZero,” de Kock outlines.

“Our own ambitions, sense of responsibility towards the environment and sustainable productivity solutions tie in well with the obligations of mining companies and cement producers of the future.”

These impressive words have been backed by a flurry of activity on FLSmidth’s part, firstly at Heidelberg Cement’s Norcem Brevik project in Norway. As an example, to support the green transition of cement, FLSmidth is providing the necessary plant modifications and equipment allowing for downstream CO2 removal. Final commissioning is scheduled for the first half of 2024.

Carbon capture is considered to be one of the key technologies in solving the CO2 emission challenges in hard-to-abate sectors, like cement.

Heidelberg Cement’s Norcem Brevik plant is now prepared to become the first cement producer in the world to move from test into full-scale production after years of preparation together with FLSmidth and other technology providers.

Most recently FLSmidth was contracted to provide equipment to French cement producer, Vicat, at their site in France, to cut CO2 emissions by up to 16% in what is set to become Europe’s first full-scale clay calcination installation.

Replacing traditional, resourceintensive clinker is a key technology in eliminating traditional cement production’s environmental footprint, underlined Carsten Riisberg Lund, FLSmidth’s Cement Industry President.

“The significance of this order cannot be underestimated; Vicat is setting a new standard for green cement in Europe.”

Carbon capture is another essential element in achieving a sustainable global cement industry, and FLSmidth recently partnered with UK-based Carbon8 Systems (C8S) to extend the reach of C8S’s carbon capture and utilisation (CCU) solution, already deployed by Vicat at its French plant.

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FLSMIDTH

“This agreement is a significant leap forward in our joint efforts to deliver on the sustainability ambitions for the global cement industry,” added Riisberg Lund. “The combination of C8S’ advanced carbonation technology and our extensive process knowledge will make a significant contribution to the cement industry’s Net Zero ambitions.”

Digitalisation is key to the success of this drive, de Kock rounds off. “The technology and products that we own, combined with digitalisation and our expertise, gives us the competitive advantage and makes us unique. The other players may have one or the other, but we have the whole package.”

DIGITAL KEY TO FUTURE “Digital is the prerequisite for two crucial success criteria – productivity and sustainability,” opines FLSmidth’s Chief Digital Officer, Mikko Tepponen.

“Our MissionZero sustainability ambition is simply not achievable without digital solutions and optimisation.”

At a time when energy costs, over-capacity and new environmental regulations are major concerns to many plant owners, digitalisation presents massive opportunities for the cement industry. At Kirene in Senegal, Chinese construction giant CBMI Construction ordered the supply and engineering of three complete control systems for two existing and one new cement line, citing FLSmidth’s combination of extensive process knowledge and digital solutions that integrate across different equipment suppliers.

“This order reaffirms our strong digital expertise,” assessed Jens Adler, General Manager in Group Digital at FLSmidth. “Digitalisation is transforming how many respond to increasing demands for emission reductions and efficiency, and is reflected in the emphasis on digital solutions as part of our MissionZero ambition.”

In Africa, meanwhile, FLSmidth has made headlines recently as the preferred provider of four large bolted thickeners, to achieve optimal water balance in a customer’s mineral processing plant.

“Most recently we have also been selected to supply six filter presses in India, for a big iron ore plant to optimise water usage, by means of water separation, preservation and recirculation,” says de Kock.

At the forefront is where FLSmidth has spent its lifetime, pioneering technology and initiatives to clean up the industry and increase productivity, and de Kock feels that we are on the brink of halcyon days for the company.

“We are optimistic about mining prospects as a whole,” he wraps up,

“as well as the growth and increased capacity that will be required on our part to support our clients in producing the commodities and cement which are very much in demand.

“Driven by urbanisation and global development propelling the need of base metals, we are seeing the dawn of a strong upward cycle for mining. It will happen, maybe not on the same scale as in 2008-2014, but it is definitely upon us.”

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PORTLAND GROUP

Portland Remains Rock Solid

amid Industry Trials PRODUCTION: Karl Pietersen

When the going gets tough, the tough get going. The Portland Group - a leading quarry, ready mix, hollow core and development business – is proving its strength in difficult times by investing heavily in growth. GM Nicol Heyns tells Enterprise Africa about managing through the pandemic and initiating material growth strategies to build the business in the future.

90 / www.enterprise-africa.net

INDUSTRY FOCUS: CONSTRUCTION

//

A seemingly never-ending year, forever remembered with sadness and frustration; the impact of 2020 remains ongoing.

Covid-19 wreaked havoc across the business community, and it continues to rage in South Africa. Re-entering Level 4 lockdown at the end of June, businesses are again restricted to working in a far from productive manner to help stop the spread of this unwelcome but all-too-present virus.

South Africa’s Western Cape, with busy Cape Town at its heart, is the second worst hit area of the country behind only Gauteng. For those active in the province, working effectively has been demanding. Ensuring safety,

maintaining contracts, delivering on promises – each has become more difficult than ever before.

For Portland Group, a leading quarry and construction materials business based in Durbanville, the regular sounds of crushing, milling and machining was replaced during lockdown with an eerie silence as employees downed tools.

The Heyns family at the helm of the business made full use of the three decades of experience under their belt to manage and mitigate.

“Covid was and is horrific,” says Group General Manager Nicol Heyns, as he looks back at the period from 28 March 2020 when a severe lockdown

// WE GET EXCITED WHEN WE TALK ABOUT THESE THINGS. WE SIT AROUND AT BREAKFAST AND DINNER AND TALK BUSINESS. WE ALWAYS TALK ABOUT HOW WE CAN IMPROVE AND WHERE THE OPPORTUNITIES ARE. //

Heyns Family at Portland's 30 Year Celebration

92 / www.enterprise-africa.net

froze work in the construction and development space. “We sat at home having hours and hours of online meetings to strategize and work on various recovery plans for the months coming after lockdown. There were major uncertainties, from working at home, to suppliers’ shortages, not to mention the difficulties of municipal plan approvals and lack of willing buyers on the development side.

“Our main focus was based on the safety and health of our employees, suppliers and clients. We always keep a strict eye on cashflow which helped us tremendously through this period without any income. We had to juggle a few things to make sure we got everything sorted and we are proud of the courage and commitment our team showed throughout this tough time.

“We started a social media campaign to drive interest and put our name out there. We got positive feedback and people would say to us ‘it’s great to see that you are still busy’.

We are fortunate to say that we haven’t

PORTLAND GROUP

had to retrench anyone because of Covid and it was one of our first priorities to ensure that employees still received salaries throughout the hard lockdown. We are now appointing new staff with the eye on expanding the company and getting a bigger piece of the work available in the market and that is very positive for us.”

The second-generation family leader is now looking forward with an appetite for growth as the diverse Portland product range becomes more attractive with construction once again picking up. While the country’s general building space has failed to reach previously inflated heights, there are major opportunities. The Afrimat Construction Index climbed 5.4% in the first quarter of 2021. Economists expect the second quarter to improve again, but with the length of the third wave yet unclear, predictions for 2021’s third quarter remain cloudy.

Coming out of the initial curtailment of freedoms, Portland was quickly able to rebound as vital projects continued unabated.

“We work on a three-year trade in cycle with most of our vehicles and construction machinery. At the end of 2019, we ordered 18 new ready mix trucks which were delivered right in the middle of the lockdown period. That was terrible timing with all employees being at home. After hard lockdown we were only allowed to work with 50% of our workforce for a few months that forced us to look at our efficiencies and how we could be more productive by using automation. We had to reduce the number of personnel on a shift but, by being more efficient, we managed to drive sales and utilise employees more,” says Heyns.

“We are very fortunate and grateful that everything is running ok.

Sales are down, but if you look at the average over the last few months since we came back after lockdown, we have had great months and bad months. All in all, things are not too bad.”

STRONG & POSITIVE In May 2019, Portland was displaying its strength and Heyns told Enterprise Africa that there was enough work in the Western Cape to comfortably see the company through another decade.

“Since then, we have opened another two quarries. Our quarry in Durbanville was established in July 2000. This is where we crush Malmesbury Hornfels material. We opened our Saldanha (Jacobs Bay) based West Coast granite quarry in partnership with Tip Trans in November 2019. Just after the quarry started running the pandemic hit.

However, we had to push through,” he says.

“We opened another quarry with Tip Trans in Worcester which is more of a crushing plant than a quarry, but we crush river stone into the same

material specification as the other quarries and sell into the Worcester, Ceres or Paarl markets.”

Portland’s ready mix division has also seen expansion with a new plant in Saldanha (Jacobs Bay) opening in 2020. Because of the industry’s closed period, this plant was not able to reach its full potential as fast as Heyns would have liked. This new plant will continue to bring the Portland guarantee of strength and workability. Alongside constructional concrete, the company also caters for decorative and special application products. While plants were closed, maintenance was the name of the game.

“Our approach was to use the time wisely; push through and do upgrades, put up new plants, maintain our equipment, and whenever the work picks up make sure we are ready,”

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INDUSTRY FOCUS: CONSTRUCTION

details Heyns. “It was a good strategy and just after the hard lockdown ended, we got our maintenance guys in, and we began building the plant on the West Coast before the work started picking up. In April 2021 we had an awesome month and we have been very busy.”

In true entrepreneurial fashion, never willing to rest on laurels, Heyns and family quickly went about establishing plans to further advance ready mix capacity. Without revealing an exact location just yet, he confirms that a major upscaling is already underway.

“We are opening up another ready mix plant around 25km from our current flagship plant. This plant will, potentially, become our new flagship plant. It’s right next to the N1 with easy access in all directions. We are very excited about this endeavour and hopefully by September it will be up and running.”

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PRECAST & HOLLOW CORE The precast, hollow core concrete market has many applications and in South Africa there is a gap in the market for an experienced player to dominate. Portland uses leading precast technology as an effective alternative to poured and traditional concrete methods. Hollow core is ideal for large, uniform building projects and allows them to progress quickly.

Precast allows for largescale rollout of more detailed designs.

“With precast and hollow core, things have been going well,” says Heyns. “Portland Hollowcore has been a business where we couldn’t get to a point where we get consistency out of it. Over the years of experience on the quarrying business, we got to a point where we know what we are doing and why we do it and it created consistency – we also have this with ready mix. We know what our strong points are and we have a good idea of how to approach

our challenges. Over the last few years and with Covid contributing to the challenges we had in our Precast and Hollowcore business, this division of Portland Group was in a grey and cloudy space. Covid gave us the breathing space to build up some strategies and a different way of thinking inside the business and we are now back to a point where we have consistency in our hollow core department – that is really positive for us.

“Precast is not a major item in South Africa yet and I think there are a lot of positives around precast. We have had meetings with engineers from bigname businesses about changing in-situ cast concrete in Cape Town to precast hollow core. It’s a big project and is very positive for us, even if we don’t get the project, we have delivered the positives of precast to one of the largest engineering and construction firms in the country.”

Currently, precast products in South

PORTLAND GROUP

Africa are very detailed when compared to other international markets where cost and standardisation are key.

Working alongside project managers, concrete specialists in the country design extremely complex products to suit different projects. Of course, this leads to challenges with pricing.

“I don’t see that in other countries,” says Heyns. “It is the norm here to work on very detailed slabs that allow for every conduit and every pipe to feed wherever it is needed. From that point of view, we have to sell the detail of the slab rather than the slab itself.

Since Covid hit, it has been tough on the industry so there is a price war in everything that you do.”

There are larger projects that are well-suited for bigger, basic, mass produced slab products. High rise buildings, housing projects, bridges,

infrastructure and more are perfect markets for Portland’s products. But for Heyns it’s all about getting in at the right price.

“Best case scenario, you can install a hollow core slab for around R700 per square meter – if everything goes your way. That is very cheap – I have seen people buying tiles for more than this.

This is why we started looking more into precast. If you can pick up a client with a vision for precast, then you are selling something special,” he says.

Currently, the company is busy with a project for a number of high profile clients where Portland is supplying floors and other concrete infrastructure.

“There is a lot of positives coming from hollow core, especially when looking at waste reductions and improvements in efficiency. In precast, concrete and steel are two of the most

expensive input costs. By reducing costs and waste, there are major savings to be made if you put the effort into making it work,” explains Heyns.

“My opinion is that there is a massive gap in the market for these precast products. Over the last two or three years, we have made good appointments in our precast division.

We have brought engineers into the company in roles where it is not necessarily required. That is helping us a lot more than we thought it would, as they just have a different way of thinking. We have been expanding our variety of products for the market. We tender on big precast projects. Since 2019 we have doubled our precast factory and we have placed an order to double to the size of the factory again.

Since 2019 to now, we have increased by 200% and that is really positive.”

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INDUSTRY FOCUS: CONSTRUCTION

DEVELOPMENT INVESTMENTS Adding another string to the Portland bow, the Heyns family added Portland Beleggings to the group in 2015. This dedicated property development business comes as a natural progression after years of involvement in general building and construction. With other group companies able to support the business, Portland Beleggings has been an area of strength for the business.

Having already completely the hugely popular 76 on the Beach and Asante developments at Blouberg beachfront, this innovative arm of the group is readying for more exciting work.

“In Blouberg, we’ve done three projects recently and the last was completed in December 2020. We are starting another development in Langebaan where we will be putting up 88 units as the Nivica lifestyle apartments. The idea is to give it a resort feel. It has a swimming pool, underroof parking, laundry facilities, and amazing views across the lagoon. This is

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a medium-to-large-sized development and will be completed in one phase. It represents a risk for us, but we are very excited about it. We recently ran a radio ad campaign in Cape Town which have seen a lot interest on the sales side. The civil works have been completed and we should start building in September 2021,” explains Heyns.

The prime location of the Nivica Lifestyle Apartments will allow for easy access to the turquoise blue waters of the lagoon as well as the Club Mykonos Resort and Casino – regarded as one of the best family entertainment venues on the West Coast.

These projects are exciting for all involved and the company will push

PORTLAND GROUP

forward with any opportunities that arise. The second Heyns generation is especially keen on further diversification in the group and working as a close-knit family allows decisions to be made quickly.

“We love what we do – especially within our family,” admits Heyns. “With the younger generation coming in,

// WE HAD TO REDUCE THE NUMBER OF PERSONNEL ON A SHIFT BUT, BY BEING MORE EFFICIENT, WE MANAGED TO DRIVE SALES AND UTILISE EMPLOYEES MORE //

we make each other crazy because we have an absolute passion for quarrying, ready mix and precast. We get excited when we talk about these things. We sit around at breakfast and dinner and talk business. We always talk about how we can improve and where the opportunities are. It usually starts with a conversation, a calculator, and then a spreadsheet. This is how our vision grows. There is an appetite for risk in the younger generation and we are always looking for gaps in the market.”

Since Nico Heyns and Helenus Scholtz founded Portland Builders back in 1988, this proudly South African group has gone from strength to strength, always managing to find opportunities and positivity, even in the toughest of circumstances. In the future, this is a business that will grow, and the drive for expansion during these tough times is proof that Portland is a

company with ambition.

“With being consistent in what you do, you get the edge over the competition, and you are able to take market share. We want to be a brand that clients want to buy from. Client satisfaction is our highest priority because if you have that, you know you will have sales. Efficiency and productivity are vital and focussing on those helps us a lot. We get a lot of positive feedback on our performance.

That puts us in a positive mindset when it comes to expanding the business and looking forward,” Heyns concludes.

WWW.PORTLAND.CO.ZA

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SQUARE KILOMETRE ARRAY (SKA)

Extra-terrestrial Questions Require Extraordinary Machines PRODUCTION: William Denstone

While it may seem too easy today to label something ‘life changing’, the SKA project is exactly that. One of the true great scientific advancements of our time, it is a global undertaking designed to offer an unprecedented understanding of our universe and solve some of the biggest questions in the field of astronomy. Almost 30 years in the planning, lift off is finally looming for the biggest telescope on Earth.

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SARAO MeerKAT Cluster

INDUSTRY FOCUS: SCIENCE & TECHNOLOGY

//

What did the Universe look like when the first galaxies formed?

What exactly is ‘dark energy’?

Is it really driving apart the cosmos at an accelerating rate? Is there other life out there? All questions which have perplexed the public and scholars alike through the ages, and which could stand to finally be answered.

The unprecedented sensitivity of the SKA’s thousands of individual radio receivers combine to create the world’s largest radio telescope, a unique configuration giving it unrivalled scope in observations.

For astronomers, this means insight into the formation and evolution of the first stars and galaxies after the Big

// WE’VE DONE ALL THE PLANNING, NOW IT’S TIME TO DELIVER //

Bang, the role of cosmic magnetism, the nature of gravity and possibly even life beyond Earth.

“The scale of the SKA represents a huge leap forward in both engineering and research and development towards building and delivering a unique instrument,” the organisation states, “born of the ambition to explore the cosmic dawn and designed to study extreme events and reveal the hidden fabric of space.”

NEW ERA, NEW BRAND Signalling a new chapter in the SKA Project’s history, the newly born SKA Observatory (SKAO) brand was unveiled following approval by the SKAO Council in April this year. The SKAO now joins a select group of intergovernmental organisations dedicated to fundamental research, and is only the second such organisation to be dedicated to astronomy.

“The SKA Observatory will transform our understanding of the universe by building and operating cutting-edge radio telescopes, benefitting society through collaboration and innovation,” it summates.

Following several years of intricate and groundbreaking design work, the newly created Observatory will oversee the construction and operation of two telescopes over the next decade.

These will be the two most advanced radio telescope networks on Earth and promise to answer fundamental questions about the Universe.

“SKA has reached a significant point in its journey that has already seen some incredible milestones,” states SKAO Director-General Prof. Philip Diamond, of the project that has been more than 30 years in the formulation to reach this juncture. Two decades on from the development of the original SKA brand,

SARAO MeerKAT at sunset

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As an african company with an African identity, we are acutely aware of the intricate elements of successfully delivering local, fit for purpose project solutions, that enable sustainable development, maximise in-country value and transfer skills to locals

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INDUSTRY FOCUS: SCIENCE & TECHNOLOGY

the project has grown monumentally in scope and ambition and gone through major changes.

“We wanted this process to be as inclusive as possible from the start, to reflect collectively on the fundamentals of our new observatory,” explains William Garnier, the SKAO’s Director of Communications of this five-year collaborative process.

“I am extremely pleased with where we landed, and feel this brand we are launching today truly reflects who we are and who we are meant to become as a global observatory.”

THE RIGHT DIRECTION “The SKA Observatory has an unprecedented opportunity to position itself as the global research infrastructure with the broadest overall impact of any currently in planning or implementation,” the organisation continues, and the appointment of its telescope directors in both Australia and South Africa sees two widely respected figures in the field become the most

senior SKAO operations representatives in the telescope host countries.

“This is a unique and exciting opportunity to establish the SKA Observatory team in Australia and help deliver the world’s next generation radio telescopes,” enthused Dr Sarah Pearce, currently Acting Chief Scientist of Australia’s national science agency CSIRO and set to head up the SKAO’s lowfrequency telescope in Australia.

SARAO MeerKAT Silhouette

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“I’m honoured to continue my work on the SKA Project in this new role, and I look forward to building a long-lasting partnership between the SKA Observatory and CSIRO.” Dr Lindsay Magnus, meanwhile, is currently Head of Operations at the South African Radio Astronomy Observatory (SARAO), and now will be the director of the SKAO’s mid-frequency telescope in South Africa. “As a South African,” Magnus said, “I am proud to have been chosen to play a key role in the realisation of this iconic international scientific instrument.

I am humbled to undertake this task to transform as many lives as possible in South Africa as well as the rest of the world.”

The pair, bringing a wealth of experience and technical prowess including in managing and operating SKA precursor facilities, will establish and lead the SKAO’s operations in their respective countries as the telescope systems are distributed across several locations.

“I am delighted to welcome Dr Pearce and Dr Magnus as our SKAO telescope directors, both of whom are highly regarded professionals in our field,” says SKAO Director-General Prof. Phil Diamond.

“Their expertise on the SKA Project, deep knowledge of the telescope sites and related infrastructure, and of course their established relationships with our partner organisations in each country means they will be able to hit the ground running as we begin the Construction Phase this year.”

SQUARE KILOMETRE ARRAY (SKA)

CONSTRUCTION IS COMING Having sailed through its System Critical Design Review in December 2019, a series of independent external panels have now examined the detailed design, costing, future operations plan and business support functions of the SKA, approving its overall readiness to move from planning to construction.

On the operations side, one major independent review looked at the plan to operate and maintain the telescopes to ensure the collection, processing and delivery of data to the international science community. The second assessed the business-enabling functions needed to support the future SKA Observatory in delivering on its mission.

“Both operations reviews have shown that SKAO is as well prepared as you can be at this stage of the project for the future operation of the Observatory,” outlined Dr Andreas Kaufer, Director of Operations for the European Southern Observatory (ESO).

“The responses of the team to the review boards’ questions demonstrated a deep understanding of the issues and challenges ahead.”

Successfully navigating these reviews and audits gives extra confidence to decision-makers to approve funding for construction later this year, and to the SKA teams across the partnership, as well as the science community at large, that the project

is ready to be propelled into the stratosphere.

“I’m proud our teams were able to conduct these major reviews with such a positive outcome in the middle of a pandemic,” said Dr Lewis Ball, SKA Director of Operations. “It’s been a very intense period of a few months, but we couldn’t have delivered these results without the years of work behind it by people at the SKA Organisation.”

Dr Joseph McMullin, SKA Programme Director, concluded: “We’ve done all the planning, now it’s time to deliver.”

WWW.SKATELESCOPE.ORG

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THE BEVERAGE COMPANY

Essential Refreshments

Keep BevCo Sparkling PRODUCTION: William Denstone

The Beverage Company (The BevCo) was founded just three years ago, but packs the punch of combining two of South Africa’s largest manufacturers and brand owners.

Bringing together important brands, infrastructure and experienced workforce, it was just the foundation required for the newly-formed BevCo to launch its own challenge on the established market order, thriving in one of the few sectors able to continue trading largely unfettered and even show signs of growth amid the chaos of recent months.

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INDUSTRY FOCUS: FOOD & BEVERAGE

//

Once pegged as the country’s next big market, South Africa’s alcohol industry is now facing what Beverage Daily calls an ‘economic abyss’. Many businesses are on the brink of collapse in large part due to the repeated bans on the sale of alcohol now totalling well in excess of 100 days since March 2020.

Rising Covid-19 case numbers and increased pressure on the country’s health services have led to strict sanctions on the purchase and consumption of alcohol throughout the pandemic to date; suddenly, no longer was it permitted to sit at a bar and order a glass of wine, nor even buy beer at a store.

COVID-SAFE SECTOR With a void like this left in the overall beverage market, the soft drinks sector has been able to weather the catastrophic impact of the Covid-19 pandemic on many sectors, going as far as to even achieve marginal growth of 0.7% year-on-year between 2019 and 2020, and expected to grow at a 1.5% CAGR between 2021 and 2025, according to Insight Survey’s latest South African Carbonated Soft Drinks Industry Landscape Report 2021.

There can never have been a better time than this to be classed

as an essential commodity, and this billing has meant that soft drinks have been among a select group of products whose movement and availability has been unrestricted during lockdown. The classification has kept them on the shelves and in the fridges of the relatively few retailers which have remained open and sold across retail outlets, immune to the disruption and closures which have plagued so many other markets in this unprecedented epoch.

Additionally, a definite movement towards health and wellness has resulted in the emergence of nonalcoholic beverage alternatives, a trend again bolstered by the country’s Covid19-related alcohol drought.

TOP OF THE POPS Only forming in 2018, The BevCo is the product of a merger of Little Green Beverages and SoftBev, a combination which affords it a rich, staunchly South African heritage. Little Green Beverages was founded in 2006 in Robertville, Western Johannesburg and began producing a limited, select range of carbonated soft drinks in early 2006, the pinnacle of which has to be the universally adored Refreshhh brand.

On sale from South Africa to Mozambique, and everywhere in

// OUR CUSTOMERS AND CONSUMERS SIT AT THE VERY HEART OF OUR BUSINESS // between, the celebrated brand now comes in a raft of 14 flavours, in sizes from two litres to a 330ml bottle, and is continually broadened with additions like energy drinks, mixers and mineral waters.

SoftBev, meanwhile, brought to the mix over 50 years of combined industry experience. A business built on quality, independence and diversity, Softbev was the producer of South Africa’s much-loved Coo-ee and Jive brands, as well as the famous Pepsico franchise brands 7UP, Capri-Sun, Mirinda, Mountain Dew, Pepsi and Pepsi Max. With this enviable head start, which included not only this stuffed portfolio but also five excellent manufacturing plants, 1000 employees and nationwide coverage, The BevCo has wasted no time at all in becoming South Africa’s leading independent manufacturer and distributor of carbonated soft drinks, energy drinks, mixers and still beverages.

“Our customers and consumers sit at the very heart of our business,”

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the company states, “and we aim to delight them with excellent products at an excellent price and with excellent service.”

Rising to the fore over the course of the Covid-19 pandemic have been the locally-produced beverages which proliferate in South Africa, safeguarding them against distribution logistics which have been severely

// ALL OUR BRANDS HAVE BECOME TRUSTED HOUSEHOLD NAMES THAT ARE OF SUPERIOR QUALITY //

BE

affected. This has suited The BevCo down to the ground, with its concerted effort to not focus solely on the established, global champions of the market but also on an array of the most beloved local heroes in South Africa.

“For us,” former CEO Michael Benjamin outlined when we spoke in 2019, “our vision has always been around promoting local heroes and global champions, and that gives us a unique capability that other beverage companies do not have. No one has the portfolio diversity that we have,” he stressed.

“Each [brand] has its own heritage and personality,” The BevCo goes on, “some formed through South African culture and others through international influence. All our brands

INNOVATIVE.

Progress is part of our DNA.

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have become trusted household names that are of superior quality.

We strive to enhance the lives of our consumers by offering choice and variety at an affordable price.”

KEEPING THINGS FRESH Innovation can mean many things in the world of soft drinks. It is the ability to respond to sometimes sudden, and sometimes drastic, changes in the market and seize upon the opportunities such shifts present. Although important, strong retail promotions are not going to be sufficient alone to achieve the robust market growth forecast; this is also being driven by the launch of innovative carbonated soft drink products and concepts.

THE BEVERAGE COMPANY

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Globally, this is embodied by the introduction of innovative packaging, catering to the rising demand for sustainable and eco-friendly practices.

The BevCo has always recognised the important role it has to play in South African society, actively considering and implementing initiatives which positively impact the lives of staff, their families, surrounding communities and the wider environment.

“We are committed to deliberately innovating our business, products, operations and supply chain,” the company clarifies, “so that we can reduce any negative impact on the environment and actively consider the health and well-being of the consumers of our products.”

In South Africa, as well as the impact of the Health Promotion Levy, or sugar tax, recently introduced to

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impose a 10% levy on beverages above four grams of sugar per 10cl, more local consumers are also demanding wellness-focused beverages. This has resulted in the introduction of healthier alternatives, including reduced-sugar variants, as well as zero-calorie and fortified carbonated soft drink options.

In typical fashion, The BevCo embraced the principles of this legislation and was way ahead of the curve in adapting to it. “We were already working on our product formulas to make sure that we were compliant with legislation while still delighting our consumers with the quality, flavour and value of our beverages,” the company makes clear, pointing to the example of its hugely successful reformulation of Reboost, which tests showed the vast majority of participants to prefer over its sugar-loaded predecessor.

The perfection of this pairing of a shift towards healthier alternatives with unprecedented constraints on alcohol could almost not have been written, and is sure to keep the BevCo busy and innovating well into its sparkling future.

“Our driving mantra is about giving consumers choice,” Benjamin rounded off. “If our choices are not good enough then they will migrate and enjoy other things.” Through both conscious choice and necessity that choice is firmly in the soft drink arena now, and The BevCo has shown that it has everything needed to keep it that way as we enter the new order of post-pandemic life.

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