Enterprise Africa December 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

December 2021

www.enterprise-africa.net

Aspen Launches Africa-Leading Anaesthetics Production Exclusive interview with Christiaan Theron, Executive Head of SA Operations

ALSO IN THIS ISSUE:

Abland / Basil Read Mining / Mianzo / Stadio Holdings

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 PROJECT MANAGER Lily Vosper  lily@enterprise-africa.co.za PROJECT MANAGER Leanna Lucas  leanna@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za FINANCE MANAGER Paige Atkins  Paige@enterprise-africa.co.za CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR

Manelesi Dumasi Timothy Reeder Benjamin Southwold William Denstone

Published by 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

At the end of 2020, as the excitement of a New Year and a fresh start was looming, most breathed a sigh of relief thinking that, surely, what was for most the worst year in memory was behind us. But 2021 started with not much difference, and the year passed without much real improvement.

Covid still lingers, economic fallout continues, investment remains slow, and uncertainty is rife. Perhaps as we approach the end of 2021, no one will be mentioning the ‘fresh start’ and simply hoping quietly for general positivity next year.

But, even in the most challenging of conditions, there are always opportunities. This is a certainty, and has been fact for most businesses across the last two years. The real challenge is finding those opportunities and developing a strategy that allows companies to take advantage of them.

At PDC, a KZN-based manufacturing business, there are major opportunities in both the local and export markets. The company has set up automation and digital technologies to ensure the highest quality.

For Basil Read Mining, a consolidation of important clients is allowing for new prospects in existing projects as mines expand.

Investment businesses Gaia and Mianzo are looking to environmental funds and other ESG principles to bolster options.

Abland is moving into residential developments after a long history focussing on commercial.

Stadio Holdings is looking at new sites as it strengthens its portfolio of education offerings.

Golf Data, the creator of some of South Africa’s most beautiful and appreciated golf courses, is shifting to work on maintenance as well as design and creation while the market is slower.

It’s clear that businesses are alive and thriving, when able to find opportunities, and when not a behemoth that cannot change direction quickly enough.

Clearly, 2022 will have chances for businesses to excel. Tell us how you will be making the most of the opportunities available – or making your own growth prospects. Optimism is a choice, and perhaps now is the time for confidence and enthusiasm around the future. We’re on LinkedIn and would love to hear from you.

Joe Forshaw

EDITOR

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

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UMLINDI SECURITY A New Guardian for SA Business ASPEN PHARMA Aspen Launches Africa-Leading Anaesthetics Production EUROLAB Eurolab Boasts CEO of the Year STADIO HOLDINGS Education Central to the Future of the Nation MIANZO Shot in the Arm for Black SMEs GAIA Catalysing the African Infrastructure Investment Landscape NFB FINANCIAL SERVICES Steadfast in Quest to Turn Knowledge Into Wealth OUTSURANCE Out-of-this-World Service When You Need It Most

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CONTENTS

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TRANSCEND PROPERTY FUND Residential Property: Defensive and Sustainable Investment Case ABLAND Ground-breaking Approach to Property Development MISSION HOLDING GROUP Growing Community in Lush Kidd’s Beach DOGON GROUP PROPERTIES Cape Property Sensation Thrives Through Pandemic GOLF DATA Carrying the Flag for SA Golf STANDARD BANK The Best Bank in Africa, Officially BASIL READ MINING Driving Deep Successes in Northern Cape PRESSURE DIE CASTINGS Adaptation, Adjustment, Agility Allow PDC to Prevail BSI STEEL Overcoming Challenge and Uncertainty to Forge a Steel Icon SA METAL GROUP Extracting Every Scrap of Value from Waste Metal TARSUS Your Partner in Digital Transformation JD GROUP A Comfortable Lifestyle Is More Accessible Than Ever EDDELS SHOES & CELROSE CLOTHING A Cut Above in SA Fashion BIG FIVE DUTY FREE Blue Skies Ahead for Big Five Duty Free GAYDON MOTOR SPARES SA Full Speed Ahead for Gaydon Motor Spares MOTUS AFTERMARKET PARTS The Right Reaction Drives Global Growth www.enterprise-africa.net / 5

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FOCUS ON: UMLINDI SECURITY

A NEW GUARDIAN FOR SA BUSINESS Has the Beast been tamed? Stepping into a boardroom to manage Umlindi Security, Tendai ‘the Beast’ Mtawarira has swapped springbok colours for a suit and tie, but his appetite for success remains and nothing will stop this powerful driving force from achieving his goals as a true guardian of his clients.

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But, following his retirement in 2019 - when most sports people rest recuperate and look for an easier life after years of commitment to their trade – Mtawarira is again taking on responsibility. This time, the project is not an easy undertaking.

The weight of responsibility is heavy.

Establishing Umlindi Security in 2020, Mtawarira is partnering with Fidelity Services Group to provide modern, expert protection services to clients all over the country. A brand ambassador for Fidelity for almost a decade, Mtawarira is familiar with the company and knew quickly that a move into the security industry was right. With Fidelity behind him, supporting him personally and in business, the Beast is ready to stand as guardian.

R

esponsibility. Tendai Mtawarira has been shouldering it for years. A Bok icon, a symbol of the country’s world-famous rugby team, and a driving force behind South Africa’s success on the field. His 117 international caps make him one of the most capped forwards of all time, and his Gold medal from the 2019 Rugby World Cup in Tokyo has fixed him in South African sporting folklore – the Beast is responsible for success.

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HARMONY AND PEACE “I have always been a protective individual by nature,” he tells Enterprise Africa confidently and assertively. “I am hugely protective of my family and friends, and I always want to make sure there is harmony and peace wherever I am at. Security fits well because you are doing something for a greater good and protecting people and their livelihoods. You are making the world a safer place and that resonates with me in a big way.

“I want to amplify that and make sure that people in South Africa feel safer. We live in a country where crime is a problem and it can be quite scary, especially for young families. I want to promote safety and it is now my passion. I love what I am doing, and I am not here solely for profits – we have a much bigger purpose.”

FOCUS ON: UMLINDI SECURITY

South Africa has one of the worlds largest private security industries with some suggesting that as many as two million people are directly and indirectly supported by the sector. It is larger than the police and military combined, and the country is now home to many of the top international brands.

Fidelity Services Group is one of the largest, taking a big step forward with its acquisition of ADT in 2016.

Mtawarira met Fidelity CEO Wahl Bartmann while working on advertising campaigns for the company. The pair hit it off instantly. Bartmann, a rugby fan, was keen to explore opportunities for Mtawarira as the two built a lasting relationship.

“I began working a lot on promotions with the company,” remember Mtawarira. “My image fitted with the security business and it went well. I was offered shares in Fidelity and bought in. From there, I took part in an induction and found out more about what the security industry is all about. I knew that it was something I enjoy and I prepared for security as a career for a long time.”

WE ARE PUTTING THE MESSAGE OUT THERE THAT WE ARE OPEN FOR BUSINESS AND IF YOU NEED OUR SERVICES, I AM AT YOUR DISPOSAL

“Tendai has been a part of the Fidelity for close on nine years now as our brand ambassador and I have enjoyed my time as his mentor while we have collaborated on a number of projects which have all been successful. It was only a matter of time before the skills he gained would assist him to start his own company,” said Bartmann.

He has been enrolled on an MBA with Henley Business School and will learn while developing the new business.

Initially, the target will be to secure corporate clients and initiate guarding and technology operations for those who share the values of ‘Brand Beast’.

“When I retired, the plan was to start a SMME that I could run and we started Umlindi last year. I took the reins as CEO to grow the company and go out and find as many customers as possible. It was empowerment in a big way for me. I always wanted to have something of my own and it has been going really well.”

BACKED BY THE BEST Currently, Mtawarira partners as a shareholder with Fidelity and will continue to act as a brand ambassador. Together the two firms aim to pioneer next-generation physical and digital asset protection solutions. Umlindi Security is driving a new energy across the industry which has become saturated with more than 9000 registered companies.

“We have two offices but we operate everywhere in South Africa. Wherever Fidelity operates, we are also there,” confirms Mtawarira. “We are now sitting with more than

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WE LIVE IN A COUNTRY WHERE CRIME IS A PROBLEM AND IT CAN BE QUITE SCARY, ESPECIALLY FOR YOUNG FAMILIES

200 guards and there is huge room for improvement. We are always looking for new business and my mandate is to go out and use my brand as leverage when talking to clients so we can show them that we are a business that is fully compliant and founded on integrity.”

With the backing of Fidelity, Umlindi can provide guarding, cash management, monitoring and response, fleet management and tracking, business security and sensormatic, cleaning and hygiene, and fire detection and suppression. As the business grows, the number of services will expand as Mtawarira looks to build a complete end-to-end solution for clients.

“Fidelity provides us with infrastructure and manpower alongside skills and expertise. I am new in this space and so I have surrounded myself with the correct mentors. Wahl mentors me and shows me the most effective ways to operate in this industry. We are looking to grow to a stage where we are our own vehicle but for now, we do rely on Fidelity,” he says.

“Our main focus is to expand in South Africa – that is our primary focus, particularly in the corporate space. We want to try and be aggressive and get as much traction as

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possible while building a strong reputation among clients.

Word of mouth is really powerful and it is a small world; if you do something great for one corporate, it will lead to success with others.”

VIRTUAL BEGINNINGS Unfortunately, even the power of the Beast could not hurdle the challenges put up by the Covid-19 pandemic. Sports stars were not immune from the non-discriminatory virus which wreaked havoc across the country through 2020 and 2021, with major impacts still being felt by the population and business community. A key strategy in the growth of Umlindi was the ability to get out and stand in front of clients, demonstrating the strength of the Umlindi Zulu shield and the offer of protection for everything around you.

“There have been challenges,” says Mtawarira. “I was wanting to get in front of as many people as possible to give presentations and connect with people so they could understand what we’re doing and buy into it. I didn’t get that luxury as everything moved to the virtual space.

FOCUS ON: UMLINDI SECURITY

we have a lot of room to grow,” he says.

For now, the Beast’s subjugating of the security industry will remain within South Africa’s borders and, unlike his rugby endeavours, will not take him international. At home on the Dolphin Coast of KZN, Mtawarira understands South Africa and the unique challenges faced in one of the world’s most prominently unequal societies.

“In terms of going outside of SA, we haven’t made plans,” he confirms. “We are focusing purely on the SA market. Further down the line, we will discuss with the board of directors to see if we can explore different opportunities in Africa.”

“When you are on a virtual platform, you cannot read people in the same way and that was challenging for us.”

But, as South Africa emerged from its harsh lockdown, the Beast and team were able to capitalise on what had been a reasonably fruitful period, adding new business to the Umlindi portfolio.

“We did thrive, we picked up some good clients.

I am studying for my MBA after completing my post graduate study last year. That helped me to navigate the new business environment and get the right skills and knowledge as a CEO. It was great to back at school and working on academic qualifications – that gave me a spring in my step as I walked into the boardroom.”

Active with The Beast Foundation and an ambassador for UNICEF Africa, Mtawarira is busy. His dedicated focus to upliftment is now an inextricable part of Beast life and whether in a philanthropical environment or a corporate boardroom, there is a level of authenticity projected by this ambitious world conqueror.

“We have built relationships with a few good clients but

FOUNDED ON INTEGRITY Currently, Umlindi Security is a Level 2 BBBEE company with 73% black ownership. New to the business world but absolutely not to be underestimated, Mtawarira is keen to participate in the biggest contracts as his company blossoms.

“We want to be involved in government tenders and there is a 30% portion of tenders that go to SMMEs that have the correct BEE qualification. We want to be one of those companies and grow significantly in that space.”

If Mtawarira and Umlindi can successfully navigate government business while growing through word of mouth in the corporate space, it will not take long for South Africans to realise that this servant of the country continues to work hard to achieve results. With many nervous about the nature of private security industry tactics and ever-growing power, and with more completely lacking in trust in the police, this is an area where a business founded on veracity could quickly emerge as an industry leader.

“We are a company that is founded on integrity. We are compliant – that is a big thing for us. We work closely with PSiRA. We have the backing of the biggest in the industry – with a great reputation – that certainly elevates us in a big way. We can take on any type of work, we have no shortage of resources. It doesn’t matter if you are the biggest of corporate organisations, we can provide what you need. If you are a small business, we can also provide a comprehensive service,” Mtawarira summates.

It is obvious that the Beast feels responsibility, and he is certainly ambitious and aggressive about growth.

Having given so much for South Africa as an athlete, this entrepreneur is once again at the start of an exciting journey and is bettering himself and those around him. Clearly, the face behind Umlindi Security is one that South Africans can trust to deliver.

“We are putting the message out there that we are open for business and if you need our services, I am at your disposal,” he concludes. Has the Beast been tamed? Not quite yet.

www.umlindisecurity.com

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ASPEN PHARMA

Aspen Launches Africa-Leading

Anaesthetics Production PRODUCTION: Timothy Reeder

Headquartered in Durban, global speciality and branded pharmaceutical company Aspen is celebrating a significant milestone in its decorated lifetime. At the South African plant where it performs the vital filling and packaging of the Johnson & Johnson Covid-19 vaccine, it has announced the opening of the southern hemisphere’s largest general anaesthetics manufacturing line, making its Eastern Cape facility one of the most advanced in the world today.

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With an acknowledged, listed presence in the pharmaceutical sector of more than two decades and boasting a 170-year heritage, Aspen improves the health of patients in more than 150 countries across the world via a vast array of high quality, affordable medicines. Headquartered in Durban and boasting a strong presence covering both emerging and developed markets, Aspen focuses on marketing and manufacturing a broad range of post-patent, branded medicines and domestic brands.

These are delivered to hospital and consumer markets alike through its key business segments: manufacturing and commercial, pharmaceuticals, comprising regional brands and sterile focus brands. “Active at every stage of the value chain, we are uniquely diversified by geography, product and manufacturing capability,” states Christiaan Theron, Executive Head of SA Operations. “Our wide product portfolio of trusted brands spanning most therapeutic areas creates meaningful diversification.”

An almost exactly equal gender split comprises the nearly 10,000 employees who occupy Aspen’s 69 offices in more than 50 countries and territories, a staff group which Theron picks out for particular comment. “Our greatest strength is our diverse and talented team who work together every day,” he highlights, “united in our purpose to improve the health and quality of life of patients.

“In everything we do, we have one common goal – to deliver high quality, affordable medicines to the patients who need them.”

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INDUSTRY FOCUS: PHARMACEUTICAL

ANAESTHETICS ANNOUNCEMENT In a move which will see Aspen relocate products generating R8 billion ($542 million) each year from Europe to its flagship manufacturing site in the coastal town of Gqeberha, the pharmaceutical giant has recently opened the southern hemisphere’s largest general anaesthetics manufacturing line, and one of the largest anywhere in the world.

Situated at the South African plant where Aspen currently fills and packages the Johnson & Johnson Covid-19 vaccine, having been proudly selected by two of its Janssen Pharmaceutical Companies,

the additional production capability extends Aspen’s sterile footprint and complements the Group’s strategic vision of delivering quality, affordable medicines using high-technology pharmaceutical equipment, contributing to improved health outcomes for patients.

Aspen had already shifted the production of drugs for late-stage cancer, Parkinson’s disease and some autoimmune illnesses to the factory in 2018.

The unveiling of the general anaesthetics line now follows swiftly on the heels of the visit by President Cyril Ramaphosa in March 2021, at the outset of production of the Johnson & Johnson shot.

This development at the Gqeberha factory, into which Aspen has invested more than R3 billion, will make it one of the largest production hubs for critical medicine in the world, the importance of which was not lost on CEO Stephen Saad. “This facility will help ensure no African is ever denied these treatments like anaesthetics and vaccines again,” he declared, “and we thank J&J for giving us the capability to create our own manufacturing facilities; as a result, we’ve been able to produce vaccines in Africa and now to also bring anaesthetics home.”

Continues on page 16

A&S PRINTERS: GIVING YOU THE EDGE A&S Printers has been providing a true mark of quality from its Port Elizabeth home since 1996.

For more than 20 years, A&S Printers – leading provider of printing solutions – has been supplying Aspen Pharmacare with service of the highest standard. A&S believes in the power of relationships and has nurtured its partnership with Aspen to become the provider of choice for printing of pharmaceutical inserts.

The Aspen site in Port Elizabeth has different facilities, each responsible for different areas of healthcare, and each able to produce millions of tablets each year. Packaged locally, these products require information inserts before arriving at pharmacies. There is a strict process involved in printing and sorting these leaflets correctly. A&S has invested in leading technology to delight its client.

“We have a dedicated plant specifically designed to produce packaging inserts. We have come a long way with Aspen over the past 23 years. From humble beginnings, we have grown with Aspen,” says MD Peter-Jon Murray “From a tracking and traceability point of view, we have to ensure no leaflets are mixed up. If the instructions call for one tablet or ten tablets, getting the wrong leaflet in the wrong box would have huge consequences. Printing numerous different product labels, ensuring tracking and traceability of every single insert and each product on the batch line, helps us satisfy an auditing process which is extremely stringent – as it needs to be. We have specialist equipment that photo-checks every single leaflet to ensure it is the correct product and nothing can be mixed up.”

A&S works for its PE neighbour on a Just In Time basis, not holding large amounts of unnecessary stock and converting raw material for delivery on the day. This is a service which the company can offer for any client, and is demonstrated through work for multiple national businesses across pharmaceuticals and other industries.

“We are busy with an expansion process and widening our portfolio of products that we supply,” says Murray. “Our intention is to increase our offering so that we can grow with Aspen. It’s an evolving industry and regulations are continuously changing. We consistently have to change and adapt to improve our systems and technology to move with them while they continue to move at a rapid pace.”

With Aspen delivering vital products to SA and Africa, and investing heavily in PE, this is a relationship that will continue to thrive, always giving Aspen the edge.

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PHARMACEUTICAL PACKAGE INSERT PRINTING A&S Printers have over 26 years experience specializing in the printing and National supply of pharmaceutical insert leaflets in our purpose-built facility. Machines are fitted with cameras and any discrepancies are rejected on detection.

Our Quality Control Department follows stringent procedures to ensure that the best standards are met. Drawing live data from our tracking software installed at every workstation, we’re able to trace every job throughout the production facility and constantly improve on efficiencies and report traceability.

Our web printing presses are reel to sheet machines suitable for very large quantities. We currently produce pharmaceutical package inserts on these machines with quantities per order varying from 10 000 to several million.

We are audited and approved by numerous leading pharmaceutical producers and packaging plants. We have state of the art equipment which we regularly upgrade, to stay abreast of the unique demands of the pharmaceutical industry

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INDUSTRY FOCUS: PHARMACEUTICAL

Continued from page 14 Sterile Focus Brands, comprising anaesthetic and thrombosis products, is one of Aspen’s key business segments and contributes 28% of its revenue.

Aspen’s strategic decision to switch focus to production, rather than lower-value generic medicines, also served to pave the way for a push into vaccines. A key element of the company’s growth strategy is in identifying therapeutic areas both specialised in nature and a good fit with existing operations, Aspen details.

“In line with this strategy, we acquired the AstraZeneca and the GSK anaesthetics portfolios in 2017, which presented an opportunity to leverage both our existing sterile manufacturing capabilities and our hospital focused sales force. In November 2017, we acquired the remaining rights to the intellectual property and manufacturing know-how related to the AstraZeneca portfolio.

“We believe that increased control over the supply chain will enhance our ability to achieve manufacturing synergies and thus support earnings growth.”

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CRITICAL MEDICATION A diverse product range includes general anaesthetics, muscle relaxants as well as a number of local anaesthetics including topical agents. “From a business perspective, our anaesthetics portfolio and the combination of products makes Aspen probably the biggest manufacturer outside of the US,” Theron explains, “which status has been brought about by the combination of our diverse

portfolios. For South Africa, it is a huge coup as it means that this Diprivan general anaesthesia will now be exclusively made in our facility down in the Eastern Cape.”

It is also hugely significant from a technological perspective, Theron reasons. “It means that our sterile facility is one of the most advanced that can be found anywhere in the world at this moment in time. It is also an opportunity to employ quite a few new people, and to create good value, fulfilling jobs, the bulk of which are taken by young graduates to work with the complex, technical equipment and processes installed here.”

This spirit of upskilling and uplifting the communities in which Aspen operates, and their people, is at the heart of the company. Its broad range of ‘We Care’ initiatives has been wide-reaching, from donations of hand sanitisers and vital face shields through its Ethicare division, to distributing much-needed relief in the form of food parcels to the elderly of Soweto impacted by the pandemic.

“We Care is an initiative that demonstrates our ongoing commitment to responsible corporate citizenship,” Aspen details. ‘We continually evaluate and invest in initiatives where we can contribute toward the improvement of disadvantaged

ASPEN PHARMA

communities or individuals in need of equal opportunities to foster an environment in which they can thrive and become active members of society. These efforts have proven to have reaching environmental, social, wellbeing and economic impacts.”

“The launch also marks something of a milestone in an investment sense,” Theron continues. “It is the completion, at this point in time, of the facility, and means that the last part of that build now becomes commercial. For us, it also marks the moment that it starts delivering on its original objective,” he explains. “The vaccine line was initially designated for anaesthetic production, but with the arrival of COVID-19 we were presented with both an opportunity, as well as a moral responsibility, to quickly change gears to address this most urgent of needs.

“The lines commissioned in October now become the first new lines on which we are launching this anaesthetics portfolio bought from AstraZeneca.”

The start of operations is also extremely well-timed to allow a continuation of Aspen’s pandemic services, with anaesthetics belonging to a fundamental class of drug, one of whose uses has been proven in supporting the treatment of COVID-19 patients on ventilators in intensive care units. “South Africa has to date imported the general anaesthetics

// THE NEW PRODUCTION LINE WILL PROVIDE AN IMPORTANT MEDICAL PRODUCT FOR THE LOCAL MARKET AND CONTRIBUTE TO GLOBAL PATIENT SUPPORT //

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needed in our healthcare system,” Minister Ebrahim Patel commented.

“The new production line will provide an important medical product for the local market, assuring security of supply, and the bulk of it will be exported across the world, contributing to global patient support.”

For Aspen, anaesthetics are centrally important to future expansion and progress, with revenue growing 21% last year to R8 332 million. The acquisition of the supply chain rights to the AstraZeneca portfolio will catalyse the process of repurposing and preparing further key sites in South Africa and Europe to drive the manufacturing transition of the greater part of this portfolio over the next three to five years.

“The opening of our general anaesthetics manufacturing line is a

significant milestone for Aspen as it will serve as a crucial anaesthetics hub for this critical medication,” confirmed Stephen Saad. “This is one of the world’s largest general anaesthetics production lines and it positively positions Aspen’s integrated supply, marketing, and sale of anaesthetics globally.

“Our investment of more than R3 billion in this facility is the single largest investment in the pharmaceutical industry in the country and aligns with our commitment to supporting the industrialisation of South Africa.”

WWW.ASPENPHARMA.COM

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EUROLAB

Eurolab Boasts

CEO of the Year PRODUCTION: Manelesi Dumasi

Lynne du Toit, CEO of Eurolab – South Africa’s leading generic oncology company – is recognised as the CEO of the Year at a ceremony in Italy. This company is slashing the cost of cancer detection and treatment in South Africa, and helping people to access innovation that is sorely needed.

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For those active in healthcare, the pandemic was not a reason to shut up shop. There was no heading to hibernate, working from home and emerging into the new normal when the threat passed.

Healthcare workers and innovators were and are the proverbial frontline.

While Covid-19 raged in communities, and as its newest iteration continues to disrupt, those fighting

existing conditions have witnessed resources directed away from the vital ongoing work.

In January 21, the University of Oxford published a study in scientific journal, The Lancet Gastroenterology & Hepatology, suggesting that the likelihood of undiagnosed bowel cancer cases emerging as a result of lockdowns was high. It found that, in the UK, there were 3500 fewer cases diagnosed that

expected between April and October 2020. Unfortunately, this scenario is the same around the world, where patients were either not allowed into healthcare spaces, or became too scared to attend.

In South Africa, before the pandemic became a healthcare priority, cancer was already an underserved problem. The country, and the wider sub-Saharan region, faces higher than average fatality rates and many cases

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INDUSTRY FOCUS: HEALTHCARE

are preventable. According to a study from John Hopkins University (JHU), ‘opportunities exist for vaccination programs for cervical and liver cancer, genetic testing and use of new targeted therapies for breast and prostate cancer, and positive changes in lifestyle for lung, colorectal and bladder cancers’.

The number of cancer cases in Africa is expected to grow significantly over the next decade as a young population ages and detection technology access improves. But more investment, attention, and expertise is needed to fight this illness which has never been given the required consideration. ‘Even though cancer death rates have surpassed those of AIDS, tuberculosis, and malaria combined, there remains a lack of commitment to fighting cancer in Africa,’ the paper from JHU reads. ‘Due to the cost of care and the absence of facilities, cancer mortality rates are expanding in Africa. Cancer death rates in Africa are projected to exceed the global average by 30% in the next 20 years’.

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DRIVING DOWN COST But those involved in the industry have long-realised the need around cancer diagnoses and treatment.

Eurolab, South Africa’s largest generic oncology company - providing the most innovative in cancer treatment, cancer management and cancer care - is bringing the cost of quality treatment down significantly, allowing for more access to lifesaving medicine.

“In keeping with our vision to bring down the cost of cancer treatment and expand access to care, we are proud to announce the launch of Eurolen, South Africa’s first lenalidomide generic,” says Eurolab CEO, Lynne du Toit.

“Historically, the only lenalidomide product on the market cost over R60,000 per box. Over an average maintenance course of treatment, a patient needed to pay over R720,000 per year. Most medical aids cover R200,000 per year for cancer treatment, leaving patients to fork out a copayment of over R520,000 for a chance to survive their cancer.”

// THE MORE JABS WE CAN GET INTO ARMS, THE QUICKER SOUTH AFRICA CAN RETURN TO A SENSE OF NORMALITY ACROSS ALL SECTORS, AND ESPECIALLY HEALTH, ECO-TOURISM AND CONSERVATION // Lauded as a source of new hope for South Africans with multiple myeloma, Eurolen – launched in January – is set to change the future for people living with multiple myeloma, a form of blood cancer in which cancerous plasma cells accumulate in the bone marrow. These cells produce abnormal proteins that can damage the organs rather

EUROLAB

// OUR STRATEGIC FOCUS REMAINS ON DRIVING DOWN COSTS, ENHANCING CARE AND MAKING MORE TREATMENTS, THERAPIES AND TECHNOLOGIES AVAILABLE TO CANCER PATIENTS // ONCOLAB TESTING Eurolab is home to world-class laboratory equipment through its Oncolab division. A highly skilled team mans a flow sorter, magnetic bead sorting, 10-colour flow cytometers and next generation sequencing.

Early in the pandemic onset, Eurolab knew it could put its existing expertise to use and assist in testing sphere. This has become perhaps one of the most important arenas in the battle against the virus.

It used Oncolab to deliver PCR testing and next generation sequencing before assisting in the vaccine rollout in rural areas. At the Sabi Sand nature reserve in Mpumalanga, Eurolab joined forces with Dis-Chem and the Sabi Sand reserve to provide more than 2000 vaccines to staff and volunteers. While Dis-Chem set up the vaccines, Eurolab supported the drive and is delivering a promise for a remote testing site in the region at Dixie Village, saving people from the two-hour drive to the next nearest site. Currently,

LABEX

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than creating helpful antibodies.

“Eurolen costs R8711 per 25 mg box. By slashing the cost of treatment down by over R10,000 per month, we are offering renewed hope to South Africans fighting multiple myeloma.

Patients who are treated with Eurolen will therefore be fully covered by their annual medical aid oncology benefit.

“Furthermore, treatment of multiple myeloma can last eight years and beyond, meaning that patients needed to pay some R4 million in co-payments. It was clear to us that something needed to be done: the cost of lenalidomide in South Africa is out of reach for most people,” says du Toit.

This initiative talks to the very nature of Eurolab, established in 2011 to improve access to cancer treatment by driving affordability. In its relatively short life, the company has already driven down the price of cancer medication in South Africa by as much as 53% in some molecules in its direct market, and as much as 31% in molecules where it does not compete.

“Internationally and locally, the originator of lenalidomide has long been associated with profiteering at the expense of cancer patients,” says du Toit. “Currently, there is an ongoing United States enquiry regarding the price of the lenalidomide originator, where executives continue to receive massive salaries directly related to the price of the drug.”

As well as medication, the cost of diagnosing cancer in patients is also coming down, thanks to Eurolab. The company introduced the Aseptic Services Unit, the Gamma Knife, and Oncolab, and has managed to retain highest quality standard while driving down price. A proven track record of providing the least expensive cancer treatment is something of which Eurolab is keen to promote.

“Today, patients are paying less than half of what they were in 2010. Our strategic focus remains on driving down costs, enhancing care and making more treatments, therapies and technologies available to cancer patients,” says du Toit.

Mandy Proost and the Labex team would like to congratulate Eurolab on their current and future ventures.

Contact US

Sales@labex.co.za

011 728 1338

www.labex.co.za

www.enterprise-africa.net / 21

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vaccination stats in Mpumalanga remain low and there is a need to speed up rollout. The threat of the virus to unvaccinated individuals is now welldocumented in the scientific community.

Oscar Mthimkhulu, CEO of the Sabi Sand, said: “This vaccine drive aims to achieve reserve and community-wide immunity, attract visitors back to one of South Africa’s major eco-tourism destinations and retain jobs. Tourism in South Africa has been hard-hit by the Coronavirus pandemic, and Mpumalanga has not been spared.”

Ivan Saltzman, Dis-Chem Pharmacies CEO, added: “We are pleased that we were able to lend our expertise in setting up this mass vaccine site at the Sabi Sand and hope that this effort will boost tourism in the area. It also demonstrates our commitment to expanding vaccine access. Dis-Chem Pharmacies is directly involved in the national vaccine rollout and has established numerous vaccine sites across the country. We can set up vaccine sites where they are needed.”

Lynne du Toit was excited about assisting in an area where services will make a real difference. “The more jabs we can get into arms, the quicker South Africa can return to a sense of normality across all sectors, and especially health, eco-tourism and conservation,” she said.

“The Covid-19 testing station set up by our specialised testing facility, Oncolab, will make it easy and quick for guests and staff to take a test and get their results on the same day.”

CEO OF THE YEAR In November, du Toit was praised for her work in the industry at the Congress of Pharmaceutical Ingredients (CPhI) Worldwide Awards ceremony. The South African picked up the coveted CEO of the Year trophy, beating out seven competitors from companies around the world.

The CPhI Excellence in Pharma: CEO of the Year Award was given at a ceremony in Milan and judges applauded du Toit’s bold, forwardlooking leadership, dynamism and

EUROLAB

contribution to the wider industry.

The company’s ability to offer a whole-of cancer-solution to oncologists and their patients, while lowering costs is viewed as a life-changing offering from a private business, set up by former nurse, midwife and medical rep du Toit alongside Gabe Simaan, Chairman of the Eurolab group.

“Back then, pharma reps were mostly women and the management teams primarily men. Women have had to apply themselves smartly and carefully juggle family and professional demands to hold their own and show their grit alongside their male executives,” du Toit said in Italy.

“I dedicate this award to my hard-working team at Eurolab in South Africa; to scientists and developers who advance cancer treatment to improve outcomes for cancer patients; to cancer patients in SA and across the world; to oncologists and healthcare workers who care for these patients; and also to all

women CEOs who have had to balance family and work commitments to get ahead,” she added.

“By 2018, Eurolab had driven the price patients were paying for chemotherapy down by over 50%, while the rest of the market experienced an average increase of over 30%. The financial burden of cancer remains one of the biggest challenges for families who are experiencing this disease, and Eurolab is proud that today, patients are required to pay less than half of what they had to pay for oncology medicine in 2010.”

In South Africa, official unemployment figures came in at over 40% in the latest data set from Stats SA. The country’s business leaders, for the sixth consecutive year, cited economic uncertainty as a major issue around proceeding with investment decisions.

The government continues to grapple with power, water and health issues around the country’s vaccine rollout.

Clearly, the issues in South Africa will not disappear overnight. If any certainty can be had right now, it is that more people will suffer cancer, and treatment remains too expensive for the majority. It’s a problem that can, and must, change.

Eurolab is at the forefront of this demand, and that – alongside its fantastic people is what makes it an industry leader.

“We are working tirelessly on widening access to innovative treatments, solutions and collaborations to strengthen the oncology response in SA in the face of the growing incidence of cancer.

“We believe that every cancer patient deserves the best chance of treatment success,” said du Toit.

WWW.EUROLAB.CO.ZA

www.enterprise-africa.net / 23

Stadio Holdings CEO Chris Vorster

STADIO HOLDINGS

Education Central to the

Future of the Nation PRODUCTION: William Denstone

Supporting three prestigious institutions, which collectively offer over 90 accredited programmes, Stadio Holdings is an investment company focussing solely and exclusively on facilitating access to private higher education, currently opening up access to more than 35,000 students. For CEO Chris Vorster, the aim is clear: “We believe in the power of education to transform our nation,” he declares. www.enterprise-africa.net / 25

INDUSTRY FOCUS: EDUCATION

//

For Stadio Holdings, everything is centred around facilitating access to higher education, through a quality teaching and learning ethos where student success is the top priority.

“The time to do something great for South Africa is now,” begins CEO Chris Vorster. “That’s why we’ve united our collective experience with one goal: to empower the nation by widening access to higher education.”

It is no secret that South Africa’s universities are among some of the best in the world. The QS World University Rankings 2019 featured nine South African universities, with the highest international ranking position claimed by the University of Cape Town, at joint 200th. The

26 / www.enterprise-africa.net

University of the Witwatersrand, or Wits, came next at joint 381st, followed by Stellenbosch University just outside of the top 400.

Three more South African universities make it into the world’s top 800, namely the University of Pretoria, the University of Johannesburg and the University of Kwazulu-Natal, while 13 feature in the 2019 rankings of the bestperforming universities in the five BRICS countries: Brazil, Russia, India, China and South Africa. South African legislation does not allow private higher education institutions to be recognised as universities, however the Stadio Group is already in the top ten universities within South Africa in terms of size.

ALL-ENCOMPASSING INSTITUTION Recognising the calibre of the historic centres of learning in the country, Vorster outlines how Stadio has always been geared toward honing and crafting offerings which take on and, ultimately, overtake, the established order. “Stadio Holdings was founded in 2017, and acquired seven higher education brands,” he tells us. “The strategy was then to condense this down into three distinct brands, of which two are AFDA, which operates in the film and creative space, and Milpark, which includes CA Connect, focusing on accounting and financial services. These remain independent higher education institutions and will follow a product excellence strategy tailored to them specifically.

STADIO HOLDINGS

“We have consolidated the four remaining brands into what we have branded Stadio Higher Education,” he says of this conglomeration of four highly prestigious institutions: Embury Institute for Higher Education, LISOF, Prestige Academy and Southern Business School; this latter was founded by Vorster.

“This is where we want to establish this comprehensive, allencompassing institution with multifaculties and schools, and multitude modes of delivery. Our goal is to position Stadio in such a way that we can go toe-to-toe with the big public universities in South Africa - we are already bigger than some of these and, should legislation in South Africa change, we are well-positioned to

achieve university status.”

Its proven ability to offer the pinnacle of tertiary teaching through such a mix of both contact and remote learning methods stood Stadio in excellent stead to fend off the sorts of challenges which scuppered many during the COVID-19 pandemic. “We are very cognisant of the shifting higher education landscape,” Vorster, who, having started in his current role on 1st April 2020, could hardly be more wellplaced to comment on the rigmarole of the pandemic, details.

“In the Stadio Holdings group only 20% of our student population was following typical, contact learning. With 80% of our student population already studying via

online and distance learning it was much easier for us to deal with the sudden shift to remote learning as a full-time provision. The most significant adjustment that we had to make was from a final assessment point of view, away from the expected traditional sitting of exams.

“It was, in fact, the contact learners that presented us with the biggest challenge,” Vorster counters, “but this was assuaged greatly by our already having in place a ready-made platform, as well as much expertise, from our existing distance learning, which we could use to move the contact learners onto. The massive efforts on the part of our staff to achieve this enabled us to attain

www.enterprise-africa.net / 27

INDUSTRY FOCUS: EDUCATION

what, at one stage, looked like the impossible feat of ensuring that all projects and assignments were completed as scheduled within the academic year.”

STUDENT SHAREHOLDERS FIRST The quality and ease of this transition was a major factor behind Stadio’s reporting a 10% jump in enrolments, to some 35,031 students, for the period ended December 2020. Over the same period, distance learning students grew by 12% to 28,664 students, while contact learning students also grew by 3% to 6,367 students.

“We were able to successfully complete the 2020 academic year on time with drop-out figures of 2.5% for contact learning and 6.1% for distance learning, the lowest since we started with operations in 2017,” Vorster unravels, a hugely pleasing growth in student numbers given the extreme conditions faced throughout the year. “Stadio is considered a leader in distance learning, which gained further traction during the year.”

Waterfall (Midrand)

28 / www.enterprise-africa.net

In another landmark for the country, Stadio has just become South Africa’s first higher education institution to make its students shareholders. “We are very excited about this initiative; it really feels like we are onto something special,” Vorster beams. “It came about from seeking an answer to private institutions never receiving the same support from their alumni as with public universities.

“Take a UCT or a Wits, for example - their alumni really give back, to a completely different degree to us and other private institutions.

The long, 150-year histories of these universities is clearly impossible to replicate in a short period of time, but to get around this we sought an alternative way that we could partner with our students for life.

“We are empowering our learners by giving them qualifications that we believe to be of the very highest quality and perfectly aligned with the world of work. This is crucial for us, but secondly we are empowering

them to start building up their own portfolio of wealth, to bring the sometimes seemingly unattainable world of investing closer to our students, whilst continuing to upskill them through the provision of training and courses following their graduation. The challenge for us is to meet all their lifelong learning needs and this share scheme is one such way that we can further empower our students beyond their studies.

“We want to foster that environment whereby parents, grandparents, children - all are channelled through the institution that their predecessors attended.” The Stadio Khulisa Student Share Scheme has already seen postgraduate alumni issued with shares worth R1000, with around 1,200 to receive similar in each year to come. “For us it is a significant step in really putting our students on the track of opening up the financial market, and a new world, to them. We are giving back to our students through this groundbreaking initiative.”

STADIO HOLDINGS

Durban Musgrave

STRIVING FOR EXCELLENCE Vorster’s ‘WWS’ acronym neatly summates the three pillars on which, for him, the entire programme is built, and the third stands for what he terms the ‘student-centred experience.’ “The first W refers to widening access,” he explains. “The legacy in South Africa is of huge numbers having been excluded, whether for political reasons or simply due to very poor schooling at secondary level, preventing their entry into further education. We are putting in place infrastructure to overcome this historic issue.

“Our alignment with the world of work is the second of these key focuses, and we are driving it incredibly hard. We have industry involvement through every step of the journey, from the programme development phase to guest lectures and seminars in our classrooms, then to the moderation of the programme and, finally, to help get our graduates employed.”

It was revealed in September that the first phase of Stadio’s Centurion mega-campus, a comprehensive multi-school campus had been completed. With investments of around R223 million, the facility will provide support for distance learning students and cater for contact learning, as these numbers return to pre-pandemic levels.

“There was an existing structure there that we bought,” details Johan Human, Stadio COO, “but it was far from complete, and originally designed for a very different purpose. We are working with Triple3 Construction in this ambitious project, who exude a real sense of Continues on page 33

www.enterprise-africa.net / 29

REALISING YOUR

Triple 3 Group is a collective group of companies operating in the built environment across the African continent. We realise your vision by offering tailor-made and integrated project solutions through a centralised project management office.

Our project management office oversees the three fundamental business silos namely Town Planning, Engineering Services & Bulk Infrastructure and Property Development & Buildings.

Through our integrated project management solutions, we have access to a diverse professional network of specialists that suit your project’s unique needs. We cut out the unnecessary loops and transitions between service providers, simplifying your project and managing every aspect from one point. In each project, we ensure that you remain an active part of the project as we work in close collaboration with you.

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TRIPLE 3 GROUP Engineering · Project Management · Construction · Property Development

TRIPLE 3 GROUP: REALISE YOUR VISION Triple 3 Group is the construction partner for the new R220 million Stadio Holdings campus in Centurion. This new site is a symbol of hope for the country’s higher education sector.

Triple 3 Group is home to an industry-leading offering in the consulting engineering, project management, construction, and turn-key property development industries. Established to provide high-quality results for clients, while also benefiting the wider communities in which it operates, this engineering, project management, and construction specialist is working hard to build lasting relationships.

In Centurion, Triple 3 worked alongside educational investment business Stadio Holdings to build a new 14,000m2 campus designed to provide space for the training of new teachers as well as a school of commerce and other courses. Triple 3 had to bring a suite of services to the table for this project as the nature of the development was around rejuvenating an existing structure while revitalising the entire site. By employing the very best contractors and working hand-inglove with Stadio Holdings, Triple 3 highlights this project as a major success.

“Our focus is on a holistic project solution that integrates the processes from inception to completion to ensure successful delivery,” says CEO Gawie le Roux.

“As a group founded on the principles of integration, we recognise that each project plays a role in the world beyond our clients’ objectives. We bring a tailor-made and integrated approach to each project through our centralised project management office. In all our project management solutions, we give you peace of mind in knowing that your project is in the hands of industry experts. Our diverse professional network of specialists operates within the built environment, enabling us to offer our clients the best possible solution to any problem. The simplest solutions are often the best. By minimising the contact points involved in a project, we streamline processes and simplify the entire experience.”

The R220 million development was planned pre-Covid and had to change method midcontract, changing from a large single build to a phased approach. Rather than panicking and allowing the challenges of such a concept to take over, le Roux and team quickly adjusted and worked hard to meet the needs of the client.

“Triple 3 was involved in the conceptualisation of this new campus,” says Stadio Holdings COO, Johan Human. “It was an existing structure that we purchased but it was far from complete and designed to be something very different from the 14,000m2 campus that we are completing.

Triple 3 is completing the construction and full engineering. They are unique as they have a whole host of sub-contractors with very specialised skills that are managed very well.

“I really appreciate their openness as a contractor to partner and not just build something generic. There is a sense of partnership around doing something excellent for the client.

“They have worked extensively in the education industry and they understand the space in which education takes place,” he adds.

Stadio moved its operations from Bank Avenue and will officially open its new facility in the New Year, although students are already on site. Student accommodation will soon be opened on the adjacent site and other Stadio developments are in the pipeline as the company looks to upscale its student numbers over the next few years. Triple 3 will remain the contractor of choice for any complex construction projects.

“Our service excellence is made possible through our client-centric approach, driven by innovation and full collaboration between Triple 3, our unique BE Network and you,” says le Roux. www.triple3.co.za | +27 (0) 10 745 1333 | +27 (0) 82 445 2073 | info@triple3.co.za

32 / www.enterprise-africa.net

STADIO HOLDINGS

Waterfall (Midrand)

Continued from page 29 partnership which is, in my long experience in the education space, quite unique in a contractor.

“Triple3 was incredibly accommodating in helping us to find solutions, even when we had to pause the whole undertaking at

// STADIO IS CONSIDERED A LEADER IN DISTANCE LEARNING, WHICH GAINED FURTHER TRACTION DURING THE YEAR //

the height of the pandemic.” Human says, “and even though the site is incomplete, from the outside it looks both beautiful and functional. This is quite a feat, and only possible through Triple3’s support, flexibility and willingness to go the extra mile.”

The campus will accommodate around 3,000 students on a purposedesigned site when complete, scheduled for 2022.

Vorster stresses the importance now of tying together the various strands which will combine to allow Stadio to succeed in its quest to help the nation learn and flourish. “My goal now is to consolidate all that we have underway, and then to put down the blueprint for growth to come,” he replies. “I want to see the 47 programmes we have in development

accredited, and then to set out a concrete infrastructure for contact learning and distance learning.”

“Our target is to reach the magic 56,000 student mark which we have set for the company, before 2026.”

With so much already accomplished in such a short space of time, there appears to be little in the way of Stadio reaching a different class of higher education. “Our vision ultimately is to be a leading Higher Education provider, accommodating 100,000 students over time - to be a new vision in higher education,” Vorster concludes.

WWW.STADIO.CO.ZA

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CEO and Portfolio Manager, Luvo Tyandela.

MIANZO

Shot in the Arm for Black SMEs PRODUCTION: Colin Chinery

For South Africa’s failure prone SMEs, access to finance is a major stumbling block. But the launch of a R100m SME fund enterprise by Black-owned Cape Town-based asset manager Mianzo, is geared to help emerging entrepreneurs gain access to growth capital. www.enterprise-africa.net / 35

INDUSTRY FOCUS: FINANCE

//

With five out of seven failing within their first year, and 100% Black-owned businesses notable victims, South Africa has one of the world’s highest SME failure rates.

The consequences are stark.

With their higher capacity to absorb labour, and a lower average capital cost per job created, SMEs are crucial job creators in a country with high unemployment. South Africa’s unemployment rate hit a historical new high of 34.9% in the third quarter of 2021, up from 34.4% in the second quarter. If the expanded definition of unemployment is used, which includes discouraged job seekers, unemployment rate is sitting at 46.6%.

BIG BUT TROUBLED SMEs across South Africa represent more than 98% of businesses, employing between 50 and 60% of the country’s workforce across all sectors, and responsible for a quarter of job growth in the private sector.

Yet access to finance is a major stumbling block, with only 6% of SMEs reporting they have received government support.

36 / www.enterprise-africa.net

// WE ARE DEFINITELY LOOKING AT EXPANDING OUR PRODUCT RANGE, AND ON THE EQUITY SIDE WE ARE CONTINUALLY ASSESSING VARIOUS OPTIONS IN TERMS OF WHAT WE CAN ADD TO OUR PORTFOLIO WITHOUT COMPROMISING OUR INVESTMENT PHILOSOPHY // But in May, Mianzo, in partnership with SME incubator Black Umbrellas, launched a R100m SME fund enterprise to help emerging entrepreneurs gain access to growth capital.

Known as the Black Umbrellas Mianzo SME Debt Fund, it will provide loans to 51% Black-owned SMEs based in South Africa, addressing the low levels of entrepreneurship and high failure rate of emerging businesses in Africa.

BLACK SME INCUBATOR Initially spearheaded by Cape Town social entrepreneurs Mark Frankel and Charles Maisel to support SMEs, Black Umbrellas is a development incubation organisation with partners in the private sector,

Government, and civil society.

In 2009, the Cyril Ramaphosa Foundation, then the Shanduka Foundation, partnered with Black Umbrellas to position the project on a national level with a R5.2 million investment.

Today there are nine incubators countrywide, and Ramaphosa, Patron of Cyril Ramaphosa Foundation, is deeply committed to the vision of Black Umbrellas as a catalyst in the development of entrepreneurs, a sector he has identified as critical to the empowerment of historically marginalised South Africans.

NEW BEGINNINGS The Black Umbrellas Mianzo SME Debt Fund is the latest initiative by

MIANZO

Mianzo – ‘New Beginnings’ in Swahili – founded in 2010 and one of only a handful of Black asset managers in Cape Town.

With the objective of differentiating itself from the big corporates in terms of doing investments, and delivering “certainty in uncertain times,” boutique and bespoke Mianzo is founded on prudent principles, yet with a mindset challenging the status quo.

“We wanted it to be a derivatives investment boutique that provided downside protection to any asset class,” explains founding member, CEO and Portfolio Manager, Luvo Tyandela.

“Our philosophy is ‘preserving capital, and then search for yield pick-up’. If the market goes down, our portfolios are more robust than others that are growth oriented.

We are more conservative than the big competitors. Our quality value, benchmark cognisant approach attests to this.”

TOP ASSET MANAGERS With offerings in institutional, global, annuity, and collective investment schemes (CIS) platforms, and currently managing assets just short of R12b, Mianzo is ranked as one of the top Black asset management companies in South Africa.

According to the 27four BEE. conomics 2021 annual survey, which provides risk and performance data on black asset managers, Mianzo ranks in the top 15 of black asset managers. The firm has been growing by 30% its AUM. “Based on the 27four BEE. economics survey, Mianzo is ranked

in the top 15 of black Asset Managers in South Africa,” says Operations Manager, Faldie Isaacs.

“Competition is tough, and it takes a lot of work to move from R1 billion to R5 billion and then on to R10 billion. Yet, based on monthly Alexander Forbes surveys, over the past 12 to 24 months our performance has been greater than most of our competitors, even among non-Black asset managers.”

FLAGSHIP LAUNCHES It’s a period that has seen flagship launches propelling Mianzo into the spotlight.

Mianzo in partnership with 27four Investment Managers, launched two new retail unit trusts with fee structures that rival low-cost passive investment products, Mianzo Equity

We deliver tailored services to asset management, banking, real estate and insurance clients.

Through our collaborative approach and international perspective, our growing team of financial service experts provide forward-thinking solutions that helps businesses in the financial services sector comply with regulations, manage risks and transform their business.

Find out more

www.enterprise-africa.net / 37

INDUSTRY FOCUS: FINANCE

27four and Mianzo CPI+3% 27Four.

The retail savings products aim to attract new inflows from historically ignored lower-income communities who can access the products for as little as R199 a month or via a R1,999 lump sum.

And in another challenge to the asset management establishment, the products charge a management fee of just 0.55%, with no performance fees, a long cry from the total expense ratios of most

// COMPETITION IS TOUGH, AND IT TAKES A LOT OF WORK TO MOVE FROM ONE BILLION TO FIVE AND THEN ON TO 10 BILLION //

38 / www.enterprise-africa.net

established players. Based on internal research conducted by Mianzo, the average management fee in the industry is around the 2% mark.

COMPASS RESET With asset managers great and small suffering declines in institutional fund flows as the Covid-19 impact resulted in retrenched workers suspending monthly retirement fund contributions or accessing their funds to make ends meet, the industry has had to re-set its compass.

And with a long-term play focussed exclusively on the shrinking asset pool and increased competition within the institutional space, no longer sustainable, Mianzo has been looking to diversify its revenue streams.

This entails building a retail book, bringing in new investors in the lower LSM market, and ultimately playing in the discretionary savings space rather than being only exposed in the retirement space.

It would see Mianzo attracting money from savings pools that traditionally save in bank accounts rather than unit trusts, and would include public servants, women’s groups, and even street vendors.

One of the key players here is Portfolio Manager Thembeka Sobekwa, holder of a BBus.Sci in Actuarial Science majoring in the field of Quantitative Finance, University of Cape Town.

“In an industry dominated 99.9% by males, having Thembeka is marvellous for us internally, and we always like to celebrate these positive outcomes in terms of real-life stories,” says Isaacs.

Unsurprisingly, this high launch activity has seen increased media exposure. But true to the conservative spirit of Mianzo, Isaacs takes a measured view. “We are seeing success, yet we remain humble, because what goes up can come down.

MIANZO

“We are definitely looking at expanding our product range, and on the equity side we are continually assessing various options in terms of what we can add to our portfolio without compromising our investment philosophy. That is very important.”

UP AND OUT FROM THE CAPE As with every sector of the country’s investment business, Covid-19 and ensuing crash, hit Mianzo’s assets under management, but acumen, expertise, and resilience are deep within its DNA.

// IN AN INDUSTRY DOMINATED 99.9%

BY MALES, HAVING THEMBEKA IS MARVELLOUS FOR US INTERNALLY //

“Through the professionalism and dedication of the team, we regained investor confidence throughout those tough pandemic months, with existing clients topping up their investments, as well as on-boarding new clients,” says Isaacs.

“Our response also allowed us to invest in our people in the form of staff promotions, job creation in senior roles, and recruiting new staff.

“It is not common for people to come into asset management of our size during a pandemic, because in these tough times people are inclined to play safe and stay where they are.

But we have achieved this.”

According to Deputy Finance Minister David Masondo, privately held Black-owned asset managers oversee just 9% of SA’s total savings pool.

BLACK TALENT PLATFORM It is against this backdrop that a founding mission for Mianzo was the creation of a platform for talented

Black students to learn and receive mentoring and grow.

“South African universities are full of such talent. 90% of the people interviewed at Mianzo for an analyst position are Black students, and our criteria is that, on an equal skill set, we will prioritise the student that comes from a disadvantaged background.”

It is a recruitment and training programme that is driving increasing success.

“We have a unique set of investment professionals, a team that remains firm on the principles of our investment philosophy, advancing our continuing success, and with the passion, dedication and commitment to ensure that we operate in the best interest of our clients and our business, based on our pedigree, and the leadership that is steering the Mianzo ship,” Isaacs concludes.

WWW.MIANZO.CO.ZA

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GAIA

Catalysing the African Infrastructure

Investment Landscape PRODUCTION: William Denstone

Attractive South African and sub-Saharan African opportunities, which deliver investors predictable, inflation linked and long-term cash yielding returns: this is the Gaia proposition. Providing access to both listed and unlisted investment vehicles, Gaia has pioneered infrastructure as a viable asset class and now looks to secure its position as its leader across sub-Saharan Africa, says CIO Hendrick Snyman.

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Tsitsikamma Community Wind Farm © Stefanie de Beer – “Line of Sight”, 2015

INDUSTRY FOCUS: FINANCE

investment performance track record,” Snyman says of the small but perfectly formed team undertaking these lofty feats, before going on to detail Gaia’s formation and its genesis in recognising untapped potential.

Tsitsikamma Community Wind Farm © Stefanie de Beer – “Line of Sight”, 2015

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Established in 2012 as a specialist asset manager, Gaia focuses exclusively on facilitating the investment of longterm investor capital in infrastructure and agriculture investments in Southern Africa. “We pride ourselves on our unique engineering, project development and finance skills to execute upon the investment options throughout the project lifecycle,” introduces Hendrik Snyman, Chief Investment Officer.

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To date, Gaia has deployed its unique approach to invest nearly R4 billion through more than 20 transactions. These are in turn spread across nine utility-scale renewable energy projects, among them a toll-road, fibre optic network infrastructure and a litany of farming and agriprocessing initiatives.

“Gaia comprises highly skilled actuarial, engineering, project development, and investment professionals with a demonstrated

ASSET CLASS PIONEERS To understand Gaia, it is essential to know where we came from,” he begins.

“Gaia was founded when South Africa initiated its renewable energy programme, and began developing greenfield wind farm projects.

“During the development of these sites, the financially skilled engineers who were overseeing the projects, all with backgrounds in the investment and corporate finance space, realised that the cashflows that emanate from infrastructure projects are very well-suited to pension funds and life products.

“From the original company that developed these wind farms Gaia was then founded, with the goal of mobilising institutional long-term capital into sustainable infrastructure projects.

We exist to facilitate financial flows, in order to invest in infrastructure and, in so doing, open up reciprocal benefits: for investors, of course, but for the country, in terms of the National Development Plan and the intrinsic link between infrastructure and economic growth, and therefore poverty alleviation.

“We want to deploy long-term capital in infrastructure to match investors’ requirements with what infrastructure can deliver for them.”

Gaia has been an innovator in the specialist secondary infrastructure transaction space in South Africa, having concluded a number of firsts and record deals to date. “The renewable energy programme was probably the first opportunity that external investors had to gain access to this very new asset class,” Snyman explains, “and Gaia has been a pioneer in convincing South African institutional investors to support it.

“We did the first secondary, or

GAIA

// WE WANT TO BE THE BE THE BRAND LEADER, FIRST MOVER AND INNOVATOR IN THE INFRASTRUCTURE INVESTMENT SPACE // brownfield, transaction within South Africa in 2015, and have gone on to complete a further 12 renewable energy secondary transactions in the country.”

Many have attempted to follow in Gaia’s footsteps, but the company has a key differentiator over the competition, according to Snyman.

“We are the best team out there,” he recognises, “and unique in that we are exclusively engineers that have come

from the development landscape and, as a result, deeply understand it from the grassroots up.”

With access to electricity in sub-Saharan Africa becoming ever-more critical in the fight to rise above poverty and nearly 600 million currently without, Gaia has been selected as one of five funds by the International Climate Finance Accelerator (ICFA) Luxembourg to replicate its success within the continent. Africa has been identified as a key tipping point in sustainability, being home to 17% of the world’s population and possessing seven of the top 20 fastest growing economies, as well as 17 of the top 20 fastest growing cities.

Despite the challenges it presents, it also has a young population and arguably the

greatest renewable energy potential in the world which, considering predictions that its energy consumption will quadruple over the next 20 years, makes it vital to energise in a cleaner, more sustainable manner.

“Africa’s contribution to climate change has been the least but, as we chart our economic future, Africa must be central to the global climate solution,” warns the Intergovernmental Panel on Climate Chang (IPCC), as the Gaia Africa Climate Fund looks to catalyse an infrastructure development snowball and, in turn, develop a sustainable local industry.

SUSTAINABLE INVESTING Gaia’s strategic aim is to replicate what is has achieved to date throughout

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INDUSTRY FOCUS: FINANCE

the remainder of sub-Saharan Africa, Snyman elaborates. “Primarily, this will entail a continuation of our current investment themes, specifically targeting climate infrastructure such as solar and wind electricity generation and transmission, sewage and water reclamation. What will explicitly link all these projects is stable cash flows for Gaia’s investors, allowing project developers to recycle their capital and develop new projects to the benefit of the continent and its people.”

This is another factor emphasising Gaia’s long-term commitment to sustainable investing, in tandem with the 17 interlinked goals set in 2015 by the UN General Assembly, to achieve a better, more sustainable future for all. “The goals have a range of desired outcomes,

including food and water security, poverty reduction, healthy living and climate action,” Snyman details.

“We desperately need to promote prosperity for all, and protect our planet. Gaia has taken hold of the flame, and our investment mission is aligned with the fundamental principles of sustainability.”

One of Gaia’s most recent developments is the Fibonacci Fibre Fund, designed to offer investors attractive risk-adjusted returns, again based on stable cash flows and annual distribution growth in line with inflation. “We are investing in fibre networks which are de-risked to such a degree that it is an attractive proposition to investors seeking to minimise risks, and to harvest the cash flows from these assets,” Snyman says of this exclusively South African

Tsitsikamma Community Wind Farm © Stefanie de Beer – “Line of Sight”, 2015

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fund, in contrast to the sub-Saharan scope of its infrastructure bedfellow.

“The fund will only acquire premium sites which have already achieved a minimum uptake of 25%, with the probability that at least 40% of potential clients will sign-on to the network. This investment process mitigates many of the construction risks,” he elaborates. “The fund’s

// GAIA HAS BEEN A PIONEER IN CONVINCING SOUTH AFRICAN INVESTORS TO SUPPORT INFRASTRUCTURE AS AN ASSET CLASS //

GAIA

Linteg, Fibre is extremely proud to be associated with the GAIA Group, as they are pioneering fibre infrastructure as an asset group on the continent.

With our world class leading technology stacks, Linteg provides a full turnkey infrastructure management service like no other. As the fibre network operator we manage the entire customer and investor journey through transparency and awesome customer service to the end users.

Established in 2011 with the initial focus on providing micro-trenching and network build services for all major mobile operators, we have leveraged our technical expertise and focus on innovation and superior customer service to grow our footprint throughout the country. Today we provide a wide range of services to an ever expanding roster of blue chip clients. At Linteg we believe in “Connecting homes and not just passing them” Giles Marshman (CEO) of Linteg says: "Our goal is to provide our clients with a single electronic turnkey solution that brings multiple benefits. By thinking outside the box where fibre is concerned we’ve unlocked benefits far beyond mere data. This is how Linteg Fibre can today offer a far broader range of connectivity services to our clients."

www.lintegfibre.com l 010 592 1857

// WE DEPLOY LONG-TERM CAPITAL IN INFRASTRUCTURE TO MATCH INVESTORS’ REQUIREMENTS WITH WHAT INFRASTRUCTURE CAN DELIVER FOR THEM // resilient and stable cash flows provide excellent diversification benefits, while the exclusivity of the fibre networks allows the fund to act as toll operator for growing data consumption.”

SECURING A FOOTHOLD Having pioneered the viability of an entire asset class and led the way in sustainable investing to promote a positive environmental, social and governance impact, Snyman tells us that Gaia will now cement its position as the example to follow in infrastructure investment.

“As a company we want to establish a foothold as the best independent secondary transaction investor in South Africa,” he outlines. “There are a number of companies that do what we do, but they are connected to the larger institutions and so although they are ‘independent’, their capital comes from their parent companies.

“We want to be the be the brand leader, first mover and innovator in the infrastructure investment space, truly independent of a large institution. In the greater sub-Saharan

region, we would like to catalyse the infrastructure investment landscape.

“We are committed to proposing a solution that encompasses a positive environmental, social and governance impact,” Snyman reasserts. “Our aim is to prove the case of Africa as an infrastructure investment destination, and to show that it is not as risky as it might be perceived in order to crowd in investors in the development cycle.

In this way, we will be integral to enabling Africa to develop to its full potential.”

WWW.GAIA.GROUP

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NFB FINANCIAL SERVICES

Steadfast in Quest to Turn Knowledge Into Wealth PRODUCTION: William Denstone

“We are a leading South African financial services provider offering highly specialised, fiercely independent financial advice, products and services,” sets out NFB Financial Services. With in excess of R30 billion in assets under management and more than 35 years of experience NFB is there at every step to help clients achieve objectives, from growing and preserving wealth to maturing into the golden years of retirement. www.enterprise-africa.net / 47

INDUSTRY FOCUS: FINANCE

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NFB’s financial advisors are, to a man and woman, industryleading experts placed to offer independent financial advice, products and services to high worth individuals, trusts, businesses, and institutions. “We have a history of bringing shared wealth opportunities to fruition,” it asserts, of its mission to help grow and nurture assets. “We use hard won experience along with new age due diligence to achieve exceptional results for our clients.

“We partner with you to achieve financial fulfilment, and have an instinct for growth.”

Since 1985 it has been using this combination of expertise and intuition to establish and affirm its position as one of the country’s leading broadspectrum financial services businesses, with its wisdom employed by all major registered South African, and a select number of preferred international, financial institutions in the banking,

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insurance, listed equity, government and quasi-government sectors.

“Planning is the most important step in achieving,” NFB states, adding that such an ethos has arguably been more critical than ever before in its nearly four-decade lifetime.

“When times are tough, a consistent, structured approach to financial management is necessary. Tough economic climates call for preparation and resilience to achieve results.”

UNWAVERING DEDICATION Now with more than 130 employees nationwide, with some R30 billion of assets under management and boasting an incredible 98% client retention rate, NFB occupies a dominant position in SA private wealth management. Enterprise Africa asked NFB’s sole remaining founder and Chairman Mike Estment to talked us through the company’s astounding development under his leadership,

right from its establishment in offices in Port Elizabeth and Cape Town.

“There were five of us in the beginning,” he recounts. “The rationale behind the creation was to have something we owned as opposed to something we worked for. We were all into wealth management and we all came from banking backgrounds, so we wanted to establish something that had a long-term legacy and wealth creation opportunity both for ourselves and others, and it’s worked out rather well.

“It certainly hasn’t happened without headwinds,” Estment

// TOUGH ECONOMIC CLIMATES CALL FOR PREPARATION AND RESILIENCE TO ACHIEVE RESULTS //

NFB FINANCIAL SERVICES

qualified. “I like to climb mountains and remember the party at the top rather than the very tough bit between base camp and the summit, but it has been challenging.”

The NFB approach is centred around an unwavering dedication to its craft. “Financial expertise starts with a relationship,” it outlines. “We take great care in understanding our clients, getting to know their story and their specific financial objectives; so that we can guide their journey with care and insight.” The truly tailored client experience is one of

// NFB IS USED AS BENCHMARK IN THE FINANCIAL MARKETS OF SOUTH AFRICA //

the main reasons cited for such impressive customer loyalty over NFB’s long lifespan.

“Each financial journey is unique,” it acknowledges, “and requires a bespoke service offering aligned to the client’s distinctive lifestyle and future ambitions.

We are also proudly independent which allows us to be unbiased in the crafting of a solution-based financial management strategy for clients, matching the top product offerings on the open market to their needs, without compromise or institutional lock-in.

“Our highly-qualified specialists advise and arm clients with the knowledge and insight they need to make informed decisions.”

The devotion of its customers speaks loudly of the quality and expertise on offer at NFB, and while this is easily affirmation enough of the strength of its service it

has nonetheless been endorsed countless times over the years by the most prestigious awards in the industry. Taking home a trio of gongs at the 2019 Intellidex Top Private Banks & Wealth Managers Awards was matched by similar acclaim for NFB Asset Management, as it again outperformed its peers to win the Raging Bull Certificate for Top Performance for its Ci Stable Fund.

“These awards are testament to the uniquely personal relationships our advisors have with their clients,” Estment assessed. “We focus on simplifying the complexity of wealth and portfolio management for our clients while delivering exceptional value. This recognition and exceptional achievement would not be possible without the extraordinary team at NFB.

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INDUSTRY FOCUS: FINANCE

“NFB has built an enviable reputation in the industry, one in which we and our customers take great pride in. Intellidex is an influential barometer of the wealth management market in South Africa. Being able to win three awards, including the main category award, illustrates our effectiveness and understanding of how best to provide holistic financial services.”

MAINTAINING FOCUS NFB’s longevity, unbending commitment and obvious success has been driven by a fiercely entrepreneurial spirit, and one that never omits to acknowledge the value of teamwork. “We are exceptionally proud of our long-serving people who collaborate effectively across business skill sets, to ensure that every decision made for you is the best possible one,” enthused Estment.

// OUR HIGHLY-QUALIFIED SPECIALISTS ADVISE AND ARM CLIENTS WITH THE KNOWLEDGE AND INSIGHT THEY NEED TO MAKE INFORMED DECISIONS // 50 / www.enterprise-africa.net

“My experiences and personal beliefs have had me lead NFB in a certain direction, very ably and strongly supported by a crop of leadership that has been remarkable. This has left me with a deep belief in the value of teams,” he elaborates. “The kaleidoscope of people each with their skills and backgrounds, are enabled to have a voice and make a difference, this is a massive strength to NFB. Every NFB employee, from our directors to our drivers and ops teams, has combined to grow, make safe and maintain our various businesses.”

NFB will be able to draw on this wealth of knowledge and ingrained spirit of teamwork in leading the fightback in months to come. In trying times, a consistent, structured approach to financial

NFB FINANCIAL SERVICES

// WE FOCUS ON SIMPLIFYING THE COMPLEXITY OF WEALTH AND PORTFOLIO MANAGEMENT FOR OUR CLIENTS WHILE DELIVERING EXCEPTIONAL VALUE // management becomes crucial, and such circumstances are but further opportunity for NFB to prove its worth, drawing on every ounce of its history and know-how to help steer clients through this significant turbulence.

“Tough economic climates call for preparation and resilience to achieve results,” NFB elucidates. “When markets are volatile and confidence is low, searching for reassurance is human instinct. Your path to future

certainty lies in a financial plan crafted by a team of professional wealth managers and financial planners with the skills, knowledge and independence to empower you with the security you seek and the financial rewards you’ve earned.

“Everything we do is focused on making our clients happy and keeping them with us for the long term,” Estment wraps up. “The last nearly 40 years are peppered with

experiences and remarkable business and personal growth, and I stand proudly as chairman and active wealth managers as we now feel able to look forward to supporting our new leadership and all our customers.

“We are so lucky to have built a business capable of sustaining itself in the situation we find ourselves in at present. NFB is used as benchmark in the financial markets of South Africa, and we will move forward now by always going the extra yard to protect our clients and exceed our responsibilities through service, excellence and avoiding pitfalls.”

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OUTSURANCE

Out-of-this-World Service

When You Need It Most PRODUCTION: William Denstone

For more than two decades, OUTsurance has provided innovative, value-for-money insurance products developed with the needs of South Africans at the centre. “Disciplined underwriting and risk selection, great customer service and deep technology and data skills - these are our key differentiators,” sets out CEO Danie Matthee, and it is working, with growth, strength and recognition all continuing to come OUTsurance’s way. www.enterprise-africa.net / 53

INDUSTRY FOCUS: INSURANCE

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Today comprising some 5000 employees and South Africa’s third-largest insurance group, OUTsurance was launched in 1998 as a wholly-owned subsidiary of Rand Merchant Investment Holdings (RMI Holdings), a South African based financial services investment holding company. A main campus in Centurion, Pretoria is staffed by nearly 4000, with the remainder spread across offices in the likes of Cape Town, Johannesburg, Durban and Gqeberha.

“From an African perspective,” begins CEO Danie Matthee, “our focus remains very much on the South African markets, where we still consider that we have very strong growth opportunities.” This

// WE ARE THE LARGEST DIRECT INSURER IN SOUTH AFRICA BY SOME MARGIN //

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has not prevented this ambitious, young company from establishing subsidiaries in Namibia and even Australia – in the form of ‘Youi’, which was successfully launched in 2008.

Significantly expanding its scope since formation, OUTsurance’s offering now encompasses the full breadth of short and long-term insurance, as well as investment products, to individual and corporate customers. In 2010, the group also launched OUTsurance Life, to enable it to offer fully underwrite life insurance products in South Africa, as well as funeral and endowment products.

GROWTH DESPITE DISRUPTION A crisis such as Covid-19 affects all business sectors, but for the insurance industry there have been some unique challenges to broach, from employee and business continuity issues to client service considerations to the financial outlook. Amid intermittent lockdowns, anxiety and stress surrounding the virus and tough economic circumstances Matthee details how the group

has remained both strong and, impressively, growing.

“We have been really fortunate as a business to have not had to let anyone go during this period of time,” he says. “In fact, we have grown our headcount by close to 800 people in net terms over the last 18 months.

“From a consumer perspective there has been a concerted trend of being cost-conscious and downbuying, particularly when it comes to vehicle insurance, but overall, barring these visible consumer stresses, we are really proud of how we have managed to navigate Covid-19. Not only from a staff point of view, evidenced in our increased personnel numbers, but whether with premium relief, or claims payments for business interruption during hard lockdowns, for example, we have offered incredible support to our customers when they have needed us most.”

Assistance which has gone beyond the borders of the business, OUTsurance also moved nearinstantaneously to commit R102 million in March 2020 to help in

OUTSURANCE

South Africa’s time of greatest need, in support of clients, service providers, the healthcare sector and the Solidarity Response Fund. “With decisive leadership, togetherness and community support, we will emerge stronger,” Matthee said at the time.

“Of paramount importance to us is the safety and well-being of our staff and partners who work with us, while making sure that our clients are assisted. As a major South African financial services company, we have a

// WE HAVE OFFERED INCREDIBLE SUPPORT TO OUR CUSTOMERS WHEN THEY HAVE NEEDED US MOST //

social responsibility to contribute to the fight against this debilitating virus and its devastating economic impact.”

Then followed in July of this year another vital operation under OUTsurance’s ‘Staff Helping SA OUT’ banner, seeing it join the RebuildSA movement by donating more than 60 tons of food to riot-stricken areas in KwaZulu-Natal. “This is a time where we have to join hands and help wherever we can”, explained Matthee. “We’re always looking for ways to uplift those in need and create social change. OUTsurance is a special place to work and is full of exceptionally caring people.”

SERVICE SETS IT APART “The business is in good shape in the face of enormous obstacles and tragedy,” Matthee is able to relate, “and to have been able to continue to focus on

growth, and on disciplined underwriting and cost management, without the need to downscale our staff or affect anybody’s salary negatively is something from which we draw real pride.”

In an extremely competitive and ever-changing marketplace, filled to the brim with competent competitors, there is one factor that he feels is of paramount importance to keeping OUTsurance at the top. “The enduring competitive advantage that we retain is the ability to offer our customers great value for money, backed up by fantastic expertise and care,” he rounds up. “We think that the quality of our service is a significant differentiator in this tough field.”

The 2020 Consumer Satisfaction Index (SAcsi) for short-term insurance Continues on page 58

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THESL: IMPROVING LIVES THROUGH EFFORTLESS AND FAIR CONTENTS CLAIMS “With our range of trusted products and solutions, we automate the replacement process as much as possible to ensure that claims are settled as quickly and efficiently as possible” Thesl is a leading insurance industry partner, delivering claims processing and settlement so that positivity can be returned to negative situations.

Possessions are broken, lost and stolen – that’s life but that does not have to be the end of the story.

Thesl, which stands ‘For The Silver Lining’, aiming to be the good in a bad situation, works with insurance providers, including OUTsurance, to ensure the claims process is efficient, effective, and fast.

By utilising best-in-class technology, Thesl can, often instantaneously, evaluate and act on claims to ensure the best possible outcomes for policyholders.

“We’ve been working with OUTsurance for the past five years,” explains Thesl CEO Craig Rawraway. “We facilitate the quantification and settlement of household contents claims. We provide the ability to value a claim and then settle it on behalf of the policyholder.

“Typically, when an item is lost, broken or stolen, the policyholder contacts OUTsurance to lodge their claim and they would, where required, ask us to assist with identifying the item of loss correctly, get best pricing from multiple reputable suppliers, and to potentially facilitate replacement for the policyholder in the most seamless way possible.”

With more than a century of combined insurance industry experience behind it, the team at Thesl are now looking forward, with a view to incorporating technology to ensure an even more efficient delivery for end-users.

“In the near future, it will be common practise for a claimant to use a mobile device to lodge their claim which we can, through our data set and algorithms, quantify instantaneously and automatically issue a buying voucher or a virtual card to spend at a store of their choice. It’s about streamlining and minimising the input so that the claim is settled as quickly and efficiently as possible,” says Rawraway.

Offering solutions which includes TenderSystem to quantify claims, as well as settlement mechanisms such as ClaimsCard, mobile vouchers and purchase orders, efficiency is the end-goal for this business – formed to bring ease, simplicity and automation to the claims process. Right now, the company is close to finalising the build of a fully automated claims process, removing multiple interventions where possible and saving even more time and money for insurers.

“We are busy piloting parts of that process” details Rawraway, “and have built a new system to ensure our data engines and data mapping is accurate. When a claim comes in, we must be able to accurately identify an item, which is mapped against our extensive product data set built up over many years. Once identified, a succession mapping process ensures the policyholder is provided with the best available replacement option. Our system then maps this to live pricing from multiple feeds and recycle quotes from various suppliers so that we can give instantaneous responses. This will reduce turnaround times and increase efficiencies, ultimately lowering the cost of claims.”

Offered on a Software as a Service (SaaS) model, Thesl’s service relieves pressure on handlers when processing complex and, sometimes, high-value and multiple item claims allowing them to offer better service to the claimant.

“We have a great working relationship with OUTsurance as we are both innovators,” says Rawraway.

“Our goal is to get the best result for our client. They, like us, are a data driven company, and therefore we focus on providing them relevant data sets, which facilitates providing the most value adding replacement solution for their client base.”

By constantly rolling out innovative solutions, Thesl continues to achieve its goal of leveraging product data to promote efficiency and improve situations for policyholders and all stakeholders across the claims process.

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IMPROVING LIVES THROUGH EFFORTLESS AND FAIR CONTENT CLAIMS EVERY “AAARGH” SITUATION NEEDS A SILVER LINING It is said that every cloud has a silver lining; even the darkest clouds on the gloomiest days hold the shimmer of hope and possibility. Thesl stands for “The Silver Lining” as we want to be the good in the bad situation that clients find themselves in. We are a financial technology company that knows that when you focus on possibilities, you’ll have more opportunities.

With Thesl, your shortcut to easy just became an opportunity. With our range of trusted quantification and settlement solutions, we automate the replacement process to ensure that your content claims are settled as efficiently as possible

COST SAVING

TIME SAVING

www.thesl.co.za | hello@thesl.co.za 021-8525420 | 0861-252467 (CLAIMS)

HAPPY CLIENTS

EFFICIENT PROCESSES

INDUSTRY FOCUS: INSURANCE

Continued from page 55 polled 2600 customers across major South African during the second half of 2020, with the results corroborating the perception of what Consulta calls, ‘an industry where competition between players is fierce, with the difference between the top four scoring brands on customer satisfaction score barely more than a single index point’.

“For the first time in the history of the SAcsi, the Short-term Insurance SAcsi score overtook the Banking SAcsi score, which has traditionally performed at a very high level,” it explained. OUTsurance was pitted

// OUTSURANCE IS A SPECIAL PLACE TO WORK AND IS FULL OF EXCEPTIONALLY CARING PEOPLE // 58 / www.enterprise-africa.net

against true industry heavyweights such as Auto & General, Discovery, Momentum, Old Mutual and Sanlam, and, with a score of 82.3, succeeded in scooping the top spot in the overall customer satisfaction measure. It is unique among the swathes of companies also vying for the honour in demonstrating consistent yearon-year improvement in its customer

satisfaction score from 2016, finally cementing the leading position in 2020.

Not only ranked number one for customer satisfaction out of all the major short-term insurers, adds Matthee, OUTsurance’s approach also incurs very few grumbles from its customers. “We are fortunate in South Africa to have the ombudsman for short-term insurance, for example,

OUTSURANCE

// WE THINK THAT THE QUALITY OF OUR SERVICE IS A SIGNIFICANT DIFFERENTIATOR IN THIS TOUGH FIELD // and for the last six or seven years consecutively we have had the fewest complaints referred by consumers compared to our peers. Our service is top-rated by the readers of numerous newspapers, including The Star and City Press, and we have won numerous awards relating to our service delivery.

“This is truly part of our DNA, and embedded into everything that we do,” Matthee furthers, and is backed by deep technology skills and capabilities. “We already consider ourselves something of an Insurtech,” he details, “and the tech that we employ in our business is all

self-built, proprietary and built to serve a specific purpose. We are able to construct processes and systems that allow us to give customers better services, and use customer feedback to continuously improve.

“Looking at our business mix,” Matthee summarises, “we are predominantly a largely personal lines motor and household insurer which provides in the region of 70% of our premium income, and this makes us the largest direct insurer in South Africa by some margin.” Some of the most glaring opportunities looking forward, he adds, are those that OUTsurance has identified in the commercial insurance space.

“We already have a great business here, made even stronger by our heavy investment over the last three years to build face-to-face distribution. We recognised that often SMEs need someone to come in and really understand how their business works, and offer a much less commoditised product as a result.

This is a big area of growth and opportunity for us in the next three to five years,” he states.

“We have just over a million existing clients to take care of, however,” Matthee stresses, “and this existing business will continue to receive the primary focus that it merits.

“After all, we are in an industry of trust,” Matthee concludes, “and it is essential that we give the consumer confidence in the economic value we can add by protecting their assets and balance sheets through insurance.

In our sphere there is no tangible product in return for the payment of a premium, essentially we sell people a promise. What they can rely on is we are a committed, trusted and deeply skilled organisation that is there for you when you need us most.”

WWW.OUTSURANCE.CO.ZA

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TRANSCEND PROPERTY FUND

Residential Property: Defensive and Sustainable Investment Case PRODUCTION: Manelesi Dumasi

JSE-listed Transcend Residential Property Fund boasts an excellent portfolio of low- to middle-income residential rental units and is busy planning to significantly grow its stock over the next two to three years. CEO Myles Kritzinger talks to Enterprise Africa about how this confident and ambitious business has remained resolute through a challenging period.

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Southgate (Naturena Gauteng)

INDUSTRY FOCUS: PROPERTY

//

For too long has residential property, especially the rental sector, been overlooked as a highly profitable and reliable asset class for investors. With many choosing industrial, commercial or retail to generate returns, a small group has been championing the potential of residential retail. The old adage of ‘everyone needs a roof over their hood’ remains true and demand for residential property is unending, with the rental market proving to be an important part of a growing industry.

In South Africa, a growing population and a shortage of formal housing makes for a booming sector. In 2019, a report from independent think-tank the Centre for Affordable Housing Finance in Africa (CAHF) found that there remains a shortage of around 2.1 million homes for around 12.5 million people in South Africa, and the roll out of new homes is not moving fast enough – a problem the government has faced since the dawn of SA democracy, and before.

Attempting to do its part in solving the problem is Transcend Residential Property Fund (Transcend), a Real Estate Investment Trust (REIT), headquartered

De Velde (Somerset west)

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in Johannesburg. CEO Myles Kritzinger tells Enterprise Africa that rental property in South Africa proved highly defensive and sustainable through the past two years while economic conditions have been severely impacted across multiple sectors. Often-unrivalled industry knowledge was employed to ensure sustainability.

“The focus over the last year was to make sure everyone was well and the business was intact,” he begins.

“Our focus was about preserving and looking after our tenant base, making sure that they were happy. By doing that, naturally the performance of the business has remained intact as well. Another consideration for us was around cash and liquidity management and making sure cash management was appropriate and we had sufficient cash on the balance sheet to meet obligations and commitments. Those

were our main priorities during the Covid experience.”

Experts in the low- to middleincome segment of the South African affordable residential rental market, Transcend has proven its mettle. Initially, the company was listed on the AltX in December 2016, before migrating to the JSE main board in February 2020 – just a month before President Ramaphosa announced a national lockdown where people would be confined to their homes to stop the spread of Covid-19.

Kritzinger, who only took over as CEO in January 2021, explains how the market segment remained fruitful.

STRONG, SUSTAINABLE “What we saw in the affordable housing space was that we were very much protected and resilient during the difficulties in the market. That comes down to two things,” he says. “Firstly,

// WE ARE LOOKING TO OPEN THE PIPELINE WITH SIMILAR TYPES OF PRODUCT WHERE WE CAN DOUBLE UP THE FUND AND THE BUSINESS OVER THE NEXT TWO TO THREE YEARS //

TRANSCEND PROPERTY FUND

// OVER THE LAST TWO YEARS IS THAT RESIDENTIAL VERSUS OTHER SUBSETS OF PROPERTY HAS OUTPERFORMED THOSE SUBSETS OF THE BIGGER PROPERTY INDUSTRY ON EVERY SINGLE LEVEL // people will need a place to live – that is normally the last thing on people’s list of cuts despite the challenges of any economic environment. The affordable market is such a large pool of people who demand houses and fall into our rental target market so there is constant demand and even though units churn, the enquiries that come off the back of that far outstrip the vacate that you go through.

“We have been really lucky in that the market that we service is such a big market and a lot of people in the higher-income brackets have fallen back into that pool, where affordability might have been under pressure and people were assessing their position have dropped into a middle-income tier.

“Likewise in the bottom end of the market, there are always people progressing and growing into our market. We have been lucky that the pool of people has been big enough to keep our occupancies in place and our portfolio sits at about 95% full.

Even at the worst point during Covid, we were at 89%.”

Financial strain on South Africa’s middle class is well-documented.

Temporary, and sometimes permanent, salary issues resulting from the pandemic as well as a very high debt repayment portion of incomes has resulted in many moving

backwards across living standard measures (LSM).

Fortunately, Transcend is known for its promise of high-quality accommodation – offering more to the market than simply a roof over the head.

For this reason, the company managed to produce fantastic results in 2020, boasting 22 properties with more than 4100 housing units, and a portfolio value of R2.51 billion.

IN DEMAND “There is high demand for affordable housing and for quality affordable product,” says Kritzinger. “A lot of what gets offered and delivered to the affordable space is sub-par. We focus our efforts around providing a quality home that can be lived in. It’s aspirational living rather than giving a room with a bed.”

Even as the company looks to grow its portfolio and become a more attractive offering for investors, the quality of accommodation is non-negotiable.

“The one thing that we always go back to is that we want to expand in a responsible way. A lot of people grow for the sake of growing and that doesn’t mean that you’re left with the same values that you had before. For us, our product and offering is around quality affordable housing and around aspirational living with secure lifestyletype estates with affordable rentals. Our growth path is focused on sticking to that strategy,” confirms Kritzinger.

Success in the listed property sector is more than about just attractive units.

Finding, retaining, and growing a client base that is happy and paying is a key indicator of portfolio health. Transcend has a stringent process when it comes

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INDUSTRY FOCUS: PROPERTY

CEO Myles Kritzinger

to its renters, and thanks to the ongoing nurturing of this process, the people it attracts are reliable.

“It is a good story for us that people have continued to pay their rent,” says Kritzinger. “One of the big things that we benchmark ourselves on, that we use as a key market metric, is around cash collectability of debt,

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and also how big our arrears are and how big our debtors book is.

“Our cash collections have always floated at around 97-98% even during Covid. Our arrears currently sit at around 3% of total revenue. It hasn’t been something that has got away from us and we have managed to keep things under control.”

AMBITIOUS EXPANSION Keeping tenants happy, and advancing the portfolio at the same time is a challenge for anyone active in the sector. But Transcend holds the vision of expanding its assets and its strategic residential properties, across all of South Africa. With this in the mind, Transcend is on the lookout for appropriate opportunities at all times and Kritzinger says there are multiple prospects under investigation and he is hopeful these can be pushed through in the New Year.

“We are very much on growth trajectory and we have two target properties that fit the profile of our existing portfolio. We are going through a capital raise at the moment and we want to execute on those by Jan 2022.

That’s 442 units at around R253 million.

We are looking to open the pipeline with similar types of product where we can double up the fund and the business over the next two to three years,” he says.

These assets fit the profile for Transcend, matching its existing portfolio of units that are expected to achieve steady rental income growth and capital growth over time.

The new units will also fit into the company’s additional growth strategy surrounding upgrades and improvements to the portfolio which will see a number of buildings EDGE certified – a green building certification system focused on making buildings more resource-efficient. Environmental benefits are twinned with potential cost savings for tenants creating an important offering.

“The new units will be EDGE certified,” details Kritzinger. “The big

strategic shift over the last two years has been around sustainability and greening our portfolio. We are going through a process right now where we have registered our entire portfolio for an EDGE certification which was rolled out by the International Finance Corporation (IFC). We have had a bit of experience with green housing and we took a focus saying that it is something we want to incorporate into our business.

It is something we see as relevant and important, not only to the company going forward from a sustainability angle, but also to the tenants in terms of benefitting them through the savings and efficiencies on consumption. A lot of those savings manifest in a cost reduction in utilities for the tenant base. There’s an opportunity in that, if we green our portfolio and our homes, and if the tenant uses it in the right way, they could save around one month pre rental on an annual basis – and that is a good saving.”

Transcend registered its full portfolio in September and has allowed 18-24 months for all units to be EDGE or Green certified.

“Everyone has been brought back down to earth, and affordability and earnings are a key consideration for people so wherever we can give back, that’s a good thing,” says Kritzinger.

// OUR FOCUS WAS ABOUT PRESERVING AND LOOKING AFTER OUR TENANT BASE, MAKING SURE THAT THEY WERE HAPPY.

BY DOING THAT, NATURALLY THE PERFORMANCE OF THE BUSINESS HAS REMAINED INTACT //

TRANSCEND PROPERTY FUND

Molware (Midrand, Gauteng)

SOLID SECTOR As the company looks to drastically bolster its portfolio size in the coming years, Kritzinger is clear that focus will remain on the traditional core business: “We are a specialist residential fund.

We only focus on residential property and we are only a rental fund. We don’t buy and sell, develop, build or get involved in construction. We only buy stabilised rental stock which is used for housing, and we generate income from that,” he confirms.

While others are active in the development aspects, Transcend’s laser focus is what has driven its major success over the years and what will drive its growth in the future. By attracting quality tenants, greening the portfolio, and adding carefully considered new assets, Transcend is building a legacy that will benefit stakeholders and shareholders alike.

“There are others in the residential fund market in SA but product-wise they are slightly different, located in CBDs and typically high-density, more affordable but catering for the lower

end of the market, in the informal wage sector. Our tenant base is characterised with secure employment in the formal work sector,” says Kritzinger.

“In the South African market, residential property and residential rental is a very small component of the bigger property sector which references industrial, commercial and retail.

There are a few of us who are going through the process of formalising the residential market and standing as specialist residential property owners or landlords,” he adds. “What has been interesting over the last two years is that residential versus other subsets of property has outperformed those subsets of the bigger property industry on every single level. Whether it’s occupancy, arrears, collections, income growth and escalation, whatever it is across all of the different metrics, residential has outperformed all. It comes back to the fact that residential rental is defensive and resilient as an asset class, even during times of volatility. We continue to perform the way we have set out to perform and that

has manifested itself during the Covid period. A lot of people have catchphrased quality affordable residential as a Covid protected investment which is a nice way to label it.”

Through the challenges of the pandemic, the difficulty identifying new opportunities, and the hesitancy for many investors to look first at residential property, Transcend has achieved excellent results and is confident about the journey ahead.

“Our ultimate aim remains unchanged: we shall endeavour to grow the business responsibly by providing quality, affordable residential rental units in desirable locations to ultimately generate sustainable growth in distributions for our shareholders,” Kritzinger concludes.

WWW.TRANSCENDPROPERTY.CO.ZA

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ABLAND

Ground-breaking Approach to Property Development PRODUCTION: Manelesi Dumasi

Abland has been creating world-class property developments in South Africa for more than three decades. Its newest builds are already generating huge interest, even during volatile economic conditions. Director Grant Silverman tells Enterprise Africa more about recent success in Cape Town and beyond. www.enterprise-africa.net / 67

INDUSTRY FOCUS: PROPERTY

//

In the heart of Cape Town’s Central Business District (CBD), property development continues, with stunning new buildings alongside incredible renovations providing living spaces designed to inspire.

The Mother City, from the backdrop of Table Mountain forward to the exciting Foreshore and V&A Waterfront, is a vital organ in the South African system and growing and improving it has become essential. Primary property development business, Abland, is taking the lead, pumping money, expertise and fervour into a brilliant new project on Loop Street.

While some companies wound activity back as a result of the pandemic, Abland displayed strength, following a carefully crafted strategy and achieving goals in the toughest of times.

“We have had an interesting year, but things have calmed down and we are back on track,” Director, Grant Silverman tells Enterprise Africa.

“During the hard lockdown, we were doing nothing. Companies got a big fright and then everyone got used to working from home, and then they realised it’s not always efficient to have all your staff working at home. Companies have realised that there must be a balance. The old

// WE ARE NOW A GENERAL DEVELOPER AND WE HAVE COMPLETED MOST OF WHAT YOU CAN DO IN THE PROPERTY SECTOR //

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school way of thinking about being in the office all the time is over technology is here.

“We have just started construction on the Rubik which is our mixeduse development. We have broken ground and anticipate completion in August 2023. It will be made up of 79 residential units and that will be split between one, two and three bedrooms. Just below the residential will be 5000m2 of offices. We will also have retail on the site.

“The development itself has stateof-the-art security and access control with separate entrance and lifts for the commercial and residential. The residential area on the roof will have fantastic panoramic views of Cape Town and Table Mountain with a rooftop braai and pool area. We have designed the building to be as energy efficient as possible.”

ABLAND

THE RUBIK With one-bedroom apartments starting at R2,180,000, the project is expected to drive the market for a new style of living in central Cape Town – secure, comfortable, and aspirational.

Demolition and earthworks began in 2019 and construction started earlier this year. The building will be double glazed, with an air-conditioning system that does not use water evaporation for cooling, energy efficient lighting and water heating systems that complement Green Star initiatives.

This R500 million development is expected to enhance the city’s live, work, play feel and offers the chance for businesses and investors to generate good returns, while also delivering highquality residential units for those looking to buy on a sectional title basis.

Apartments have floor to ceiling windows to make the most of light and views, winelands and beaches are close by, and Loop Street sits in the centre of cosmopolitan Cape Town, recognised

by The Telegraph as the Best City in the World for seven years running to 2019.

Abland recently completed another high-profile development in Cape Town, the 35 Lower Long building which is home to 4-star green rated P-Grade office space. The 86-metre glass clad tower is a far cry from the 80s-built structure that previously sat on the site.

The Green Building Council of South Africa (GBCSA) has certified hundreds of structures around the country, but there remains major scope for improvement.

Abland has made its intentions regarding its footprint clear and aims to be a developer of choice when it comes to first-class environmental standards.

“Buildings will definitely shift as the move goes more to green star buildings – we have made the change to go with more efficient buildings already. That will be a big focus going forward. As developers, we have always carried a bad rep around not caring as much for the environment, but the opposite is true; we take it very seriously and it is something that we always look at,” states Silverman.

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INDUSTRY FOCUS: PROPERTY

PROPERTY EXPERTS Historically, Abland is an expert in the delivery of a range of property development projects. The company has expertise across all industry spheres and is recognised as a mark of quality.

“Abland is a privately-owned company that has been around for 35 years,” details Silverman. “Our developments in South Africa are focussed around Johannesburg, Pretoria and Cape Town, we also have a few developments in Durban. As one of the largest developers in the country, we do handle developments everywhere, in all the provinces.

“The main focus for us in the past was office space and office developments, and we still do that today - from office parks all the way through to high-rise buildings. Over the years, we have completed a number of industrial developments and distribution centres, warehouses, manufacturing centre, data centres, and more.”

Currently, he reports, there is a large focus on the retail sector. “It includes shopping malls and convenience shopping centres. We have opened two this year and we have broken ground on another three. We have a fantastic pipeline of retail centres.”

Abland has also proven its worth in other industries, successfully completing hotels, car showrooms, and fitness centres.

“We are now a general developer and we have completed most of what you can do in the property sector,” smiles Silverman.

A major factor behind the company’s success is its ability to foster flourishing and lasting relationships. Working alongside contractors, landowners, financial institutions and a host of other stakeholders, Abland is collaborative and does not drive a one size fits all solution.

“We enjoy partnering and we partner with institutions, funds, smaller developers and more. We use each other’s expertise and they like the way we structure our deals. We partner with everybody; we are not a company that comes in and takes over. We are very much a team player,” confirms Silverman.

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ABLAND

GROWING PIPELINE As South Africa deals with its fourth Covid wave, albeit more understood, many companies are still nervous.

But Abland has taken an optimistic stance, starting projects and furthering its pipeline.

“We are growing, there are a lot of developments in South Africa,” Silverman confirms. “Looking at our pipeline, it is very exciting. The larger companies are looking to the future and many of them have right-sized while going into new and more efficient buildings. We have engaged a lot of the multinationals where they have asked us to rationalise the space they have.

In the old days, nice big spaces with everyone having their own room was common but we have all now learnt to work from home and balance the flexi working lifestyle. People will go back to the office and that will be good for us.

“We have a number of developments in the ground now,” he adds. “We are busy with a few offices, and we have the S&J Industrial Estate development which is a big industrial park in the east of Johannesburg – that has gained fantastic traction. In Cape Town, we have just finished a fantastic high-rise in the foreshore which is now fully let. And then we have Atlantic Hills industrial development on the N7 which is progressing well.”

The S&J Industrial Estate is described by Abland as the ‘benchmark for industrial precincts in South Africa’, covering 210 hectares, and home to logistics, manufacturing, warehousing and distribution centres. Atlantic Hills is an industrial development with easy access to Cape Town harbour. The 44-hectare

// WE HAVE PROJECTS IN THE GROUND, WE ARE BREAKING NEW GROUND, AND WE’LL TAKE IT FROM THERE //

site will be merged into the City of Cape Town’s Integrated Transport System providing public transport access from Milnerton, Parklands, Plattekloof and Durbanville.

“Industrial will grow as all of the big retailers move online to make it easier for people to get things delivered to their door,” says Silverton.

Part of the larger Abcon Group, Abland draws knowledge from across the entire property industry, sharing insight with realtor, property management, residential, and asset management divisions. The Abcon Group’s 150 people are experts and the company keeps its internal operations lean to drive efficiencies.

PROUDLY SOUTH ARICAN With most now expecting the disastrous market conditions created by the pandemic to be a thing of the past, and with many expecting inflows of foreign investment as the Rand price becomes attractive, the property development industry is ripe for quick recovery and growth. The construction industry is a major driver of the economy and a job creator, and the government will be quick to fund investment into this area. Major successes from the likes of Waterfall City, Steyn City, and Century City are encouraging prospects to be turned into projects quickly, and Abland is ready to assist.

“We want to grow where we can,” admits Silverman. “We are a proudly South African company and we are here to stay for the long-run. Everyone was under pressure through the last year, but we were fortunate we had some projects in the ground. We are growing and people will move back to offices. All those people who gave up offices or downsized will come back to the market and that will improve our position further.

“We did manage to get through it, I wouldn’t say unscathed, but it’s upwards and onwards from here,” he adds. “We have projects in the ground, we are breaking new ground, and we’ll take it from there.”

The excitement generated in Cape Town, and at other sites around the country, are helping to fuel interest in Abland, and interest in the industry.

Right now, with so much pressure and uncertainty in markets, it pays to partner with a symbol of strength. Abland remains confident.

“We will keep going, breaking new ground, building buildings and working on industrial, retail or wherever the need is,” concludes Silverman.

WWW.ABLAND.CO.ZA

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MISSION HOLDING GROUP

Growing Community in Lush Kidd’s Beach PRODUCTION: Karl Pietersen

Just a stone’s throw from the sand and the Indian Ocean, Kidd’s Beach mixed-use development from MHP Property Specialists is emerging from the ground. Soon to be the site of 5500 quality new homes for a range of income groups, this is a unique project turning heads in the property development industry. CEO Tjaart Van der Walt talks to Enterprise Africa about progress on site.

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INDUSTRY FOCUS: PROPERTY

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In the Eastern Cape, nestled between the Mlele and Mkhansi rivers, a new mixeduse development is emerging from old farmland. In Kidd’s Beach, a quiet coastal resort town, a revolution is happening that is set to change the region, attracting people and business to the area.

Meaningful property development in South Africa is mostly centred around the country’s major commercial hubs – for obvious reasons – but Tjaart Van der Walt, CEO at Mission Holding Group (MHG) is driving a new type of project, building high-quality new homes for different income groups, sharing amenities, and handling everything through a vertically integrated supply chain.

Van der Walt is the son of a fisherman and an Eastern Cape native who spent his youth travelling the region fishing the local rivers. He moved North to develop his career as a mining engineering, designing some of the country’s most important mines for Sasol and the town of Secunda in Mpumalanga.

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// I AM PROUD WITH THE WAY THIS IS WORKING OUT AND I AM LOOKING FORWARD TO ROLLING IT OUT OVER THE NEXT FEW YEARS // MHG purchased 340 hectares of unused farmland, right by the sandy Kidd’s Beach, in 2007 and went about bringing to life a R10 billion dream of development in the region. The journey began slowly, taking seven years to rezone and prepare the land for construction. But now, this is a development fully underway, with 600 of the proposed 5500 homes already sold and occupied, and much optimism and ambition driving the vision.

“I am proud with the way this is working out and I am looking forward to rolling it out over the next few years,” smiles Van der Walt. “There’s probably another seven to 10 years to roll out the full 5500, which could even grow to 7000 if we can get a higherdensity product that can fit into the environment. People of the Eastern Cape love nature and every house on this development has a sea view. There

is a 1.5km beach front and it is very special that all houses, including the affordable homes, have sea views and are walking distance from the beach.”

DEVELOPMENT FOR ALL Kidd’s Beach will have a product for everyone, from first time buyers to investors and high-net-worth individuals. Shopping, entertainment, education and healthcare facilities are all either underway or in the pipeline.

Positioning multiple income groups across one site is a unique concept for South Africa, but Van der Walt says that it has been hugely successful to date.

“On the first five farms, there are around 2650 residential units from affordable at R750-800,000 to R5-10 million, and then there is the golden mile along the beach which is yet to open where we expect units to go for R10-20 million.

MISSION HOLDING GROUP

“We have the units for people to fulfil their aspirations of moving up the property ladder – we see that happening.

The architectural design and features are similar for the smaller houses through to the big units. On other estates in the country, you would not have the range of property that includes such a diverse spread of income groups.

“99% of our buyers are black. The average age of our buyer is 32, and the majority are first time homeowners, specifically in the affordable range between R750,000 and 1.2 million. When you get above R1.8 million, it’s usually departmental heads or teachers or those in government. Above R5 million tends to be Directors, CEOs and senior business leaders. The levy structure and amenities are more upmarket.”

This development solves a longstanding commuter problem in the region with many travelling into East London or Bisho to work, but residing in small towns or villages hours away from these hubs.

“We have taken the residential and amenities and made them all part of a mixed-use development estate.

With all the amenities come job and business opportunities and people can live and work on the estate,” explains Van der Walt.

“We have 600 houses already sold and occupied and we have 180 presales being built right now. More than 65% of the buyers and residents work in Bisho for other government departments. We are achieving what we set out to, and we are moving our focus to MercedesBenz SA who manufacture mostly for the export market but where the factory is only 18km from us. A lot of suppliers to MBSA, as well as renewable energy manufacturers, are based in that Industrial Development Zone.”

REGIONAL IMPORTANCE The East London Industrial Development Zone is close to the country’s only river port, on the doorstep of the airport, and right by the N2 and N6. In November, R3.4 billion was injected to the IDZ to

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INDUSTRY FOCUS: PROPERTY

boost economic recovery and grow the automotive industry in the region. MBSA recently started production and export of its new generation C-Class model after a R10 billion investment in 2018.

Employees here are perfect prospects for the future rollout of Kidd’s Beach.

“It is about addressing the housing need in South Africa while providing a space where people can work, play and live. Specifically in the Eastern Cape, people have come to me and said thank you for the work we are doing to develop the area,” says Van der Walt.

Currently, the site is open and first residents have moved in. The land is split into different zones including Umlele Heights, Umlele Hills, Umlele Springs, Impangele, The Village, and there are further adjacent sites which are currently being planned. Each zone has a secure entrance and has access to the primary private school and the new secondary private school which will open in January 2022.

To ensure all relevant amenities are on site, and create an entire community eco-system around Kidd’s Beach, a hospital, hotel, gym, and more will come in the future.

“The shopping centre is walking distance for all, and all the stores are there.

There are around 20 stores so far and MHG is a shareholder in the shopping centre which now has also a Debonairs Pizza that has recently opened.

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“In 2022, we are working on a private hospital. We have the license and we have finalised the rezoning.

We are talking to different operators and looking at a 100-bed private hospital, with three theatres and all the associated amenities.

“Thereafter we will look at a hotel and conference centre which has been pushed out as a result of the pandemic. We have had a number of people enquiring about this for as soon as tourism is back online,” details Van der Walt.

Kidd’s Beach is the start of the Wild Coast and there are a lot of malaria free private game reserves in the area which are home to the Big 5. For visitors to the region, this new development provides an anchor point to explore the region which has so much to offer. Just 15km from the airport, Kidd’s Beach makes for a location where travellers don’t have to go into East London city centre. “We considered all of these factors when completing the urban design, including proximity to Bisho where there is no real housing development. The government office there has around 130,000 people working across different sites but who all live in East London and have to travel 67km to get there – Kidd’s Beach is much closer,” says Van der Walt.

VERTICALLY INTEGRATED While many companies are experienced with new development projects in South Africa, this project requires a local feel and a set of minds that understand the area. MHG is the perfect developer thanks to its vertical integration. From organising the rezoning of the land, through construction and civils, and to estate agency and bond applications, Van der Walt has always wanted to provide a one stop shop.

“Under the Mission Holdings Group, we have a number of different subsidiaries for different activities.

“MHG Building is our inhouse construction company and that has two divisions which handles construction and civils. All sub-contractors come from our area and that is a commitment to an area where unemployment remains high. We have trained up a number of people and we are assisting SMMEs with registrations, paperwork, and health and safety management.

“We have MHG Properties which is our own estate agency. We have several agents selling, and we have rental agents managing 140 units for our investors. We also handle inhouse bond origination where we are linked with all the banks.”

A strong financial position and a healthy pipeline have reinforced strong relationships between MHG and the country’s big banks.

“Nedbank Affordable Housing Division is financing the civils and building contracts and they were sceptical when I approached them for financing. When I launched the first phase of 180 units, they gave me five years to complete and establish the address as they were concerned about who would buy in this area. Within nine months, we had sold all 180 units from plan. Within 18 months, we had built 180 and from there we started rolling,” says Van der Walt.

“The secondary private school opens in January and that is subsidised

by Old Mutal PIC School Fund to keep the monthly subscription fees for the school low,” he adds.

MISSION HOLDING GROUP

// IT IS A NEW SUPER SUBURB OF EAST LONDON AND THERE IS NOTHING ELSE LIKE IT IN THE EASTERN CAPE // MHG Financial Services is also a partner of Momentum, providing a range of insurance products, financial advice, and general financial well-being.

ROLLING OUT In the future, MHG has a lot to do at Kidd’s Beach, but the company is looking for opportunities to continue its important work.

“We have branched out along the southern coast,” says Van der Walt. On the other side of East London, MHG is undertaking development of the Balugha River Estate, a private gated

estate on the beach and river. This secure and environmentally conscious development provides amazing family homes or holiday rentals. There is also opportunity to buy plots and design house spec alongside the developer to achieve something truly unique.

At Kidd’s Beach, much of the time-consuming work is now complete and things are exciting for Van der Walt and team.

“The was completed in September 2020. We drilled 14 boreholes to supply 500 houses, the shopping centre, and school from three boreholes, completing the water purification and pressurisation ourselves. This was a real challenge with Eskom and loadshedding. If we had to rely solely on the municipality, the development would not have happened. We have gained momentum and raised taxes for the municipality and they see the value of the development with many of their employees living at Kidd’s Beach. It is a new super suburb of East London and

there is nothing else like it in the Eastern Cape,” he says.

“Now we have the product, it’s a question of rolling that out.”

This development is vitally important for the region and acts as an example to follow for future projects, not just in the Eastern Cape, but around South Africa. investing properly in everything required for a thriving community, MHG has stuck to a strategy and is achieving its vision.

“My aim is to provide quality housing and amenities,” states Van der Walt. “At Kidd’s Beach, people can be born in the hospital, grow up in the area, work close by, buy quality homes, and live their life in the shopping centres, gyms and other amenities. The only thing we haven’t decided on is where the cemetery will go,” he concludes.

WWW.MISSIONHOLDINGGROUP.CO.ZA

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DOGON GROUP PROPERTIES

Cape Property Sensation

Thrives Through Pandemic PRODUCTION: David Napier

Approaching its 20th anniversary, Dogon Group Properties is enjoying a wonderful time in and around Cape Town, with a number of high value developments underway and a booming market for luxury property. Managing Director, Alexa Horne tells Enterprise Africa that the key element in this industry is developing great people who can cultivate lasting relationships.

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INDUSTRY FOCUS: PROPERTY

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Luxury property in South Africa is some of the world’s finest. Globally renowned architects, ambitious homeowners, and expert developers have created dreamy properties that are the envy of even the most prudent buyers across international markets. The country’s climate and natural spaces, complemented by busy and exciting metros – especially Cape Town and Stellenbosch – make for a brilliant market for realtors.

But it’s certainly not easy. Even with rich stock, South Africa faces challenges, with unpredictable exchange rates, volatile economic conditions, mass unemployment and erratic politics.

Buyers have to be cautious, even in the traditionally successful markets around the Western Cape.

The pandemic has added a fresh new issue with buyers now on the lookout for space to work from home, and a balance between busy city and spacious countryside. Because of this, it pays to partner with the best - real estate agents that know the market and are familiar with the nuances of their regions.

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// I SUPPORT ANYONE WITH THE RIGHT ATTRIBUTES TO JOIN OUR TEAM – MOTIVATED, HARDWORKING, AND AN EAGERNESS TO LEARN // Freehold property experienced 6% price appreciation since in the first quarter of 2021. Penthouse apartments and luxury flats have also experienced strong price growth thanks to privacy, security, and high-end finishes. Buyers from Gauteng and KwaZulu-Natal are looking to Cape Town and its Southern Suburbs for space and quality.

Properties above R10 million across the Atlantic Seaboard have seen demand swell. For most estate agents, activity in the higher price brackets has been good, thanks to people’s new desire for more space as they work from home.

This demand is driving the development of bigger homes on secure estates, and the market is becoming difficult to stay on top of.

In the Western Cape, Dogon Group Properties is a front runner and able to assist clients in the upmarket category.

Established in 2002 by industry legend Denise Dogon, this is a company

pushing the boundaries and delivering service excellence in every transaction.

Managing Director, Alexa Horne talks to Enterprise Africa about a new development which will take Cape Town by storm – The Fynbos, a magnificent new mixed-use building in the CBD’s heart.

“This particular project has a long history. The developer, Lurra Capital, architect and development manager drove The Fynbos to life. There will be similar projects in the future and we are excited as we have not seen anything similar to this scale or extent in South Africa. The community response has been awesome. People have been astounded, everyone but a few loves it.

It’s a big change and is different – the city is going green,” she says.

The Fynbos is a 24-storey development with 689 apartments, a rooftop swimming pool, a fitness centre, a restaurant, a tea room, a bar, and a

DOGON GROUP PROPERTIES

sunset terrace. But, the most appealing aspect is its biophilic nature. It is a truly living structure – the first real example in Africa – with Green Star Certification in process from the Green Building Council of South Africa. The building is wrapped with a 1200 m2 vertical garden, made up of 30 indigenous species of trees and 20 species of shrub. Amazing environmental credentials help to further enliven this unique and vibrant building.

“There are extensive solar panels on every free surface - even vertical mounting on balconies. There is rainwater harvesting and double glazing throughout. It has large balconies for shading and private use. We have worked with a top-drawer team all round. The architect, interior architect, engineers of all disciplines and other consultants are those at the very top of their game – it’s a solid team that works very well together,” says Horne.

Compared to a traditional project, this development has pushed boundaries for those in the Dogon Group Properties developments division. More people, more moving parts, more ideas; it’s tough to manage.

“Once in place though, it makes sense,” says Horne. “We are expecting residents to begin moving in phases in the second quarter of 2024.”

Dogon Group Properties describes the project as one which will blur the lines between nature and the built environment. With luxury studio units starting at R890,400, this development allows Dogon to stick to its mantra of offering the choice selection of Cape Town properties.

For Horne, this is a project that will encourage future developments that work alongside the environment. “It’s all about minimising the structure’s environmental impact and holistically enhancing life for residents,” she says.

“Through energy efficiency, eco-friendly materials, and a deliberate awareness of its surroundings, The Fynbos leads the way for sustainable architecture that conserves the city’s biodiversity and reduces energy waste.”

Managing Director, Alexa Horne

AT HOME IN THE CAPE Dogon Group Properties has set itself apart as a real estate offering through alternative innovation and marketing.

Focussed on high-end property, and experts in Cape Town and its surrounds, Dogon is known for a revolutionary approach to business.

When the first office opened on the Camps Bay beachfront, it was unlike any other estate agency with lounge space, televisions, modern décor, and a fleet of Mini Cooper cars outside. There was also a modern and very user-friendly website which, for South Africa at the time, was visionary.

The business grew fast and quickly became recognised as the region’s industry leader, consistently achieving record prices, including the most expensive property sold in South Africa, a R290 million home in Bantry Bay in 2016.

Following an economic slowdown as a result of the pandemic through 2020, the industry and the company are once again on the move, and, as always, Dogon is leading the way through a relationship-based approach.

“Our business has been built interaction by interaction, proving that relationships are the bricks and mortar to success,” states Horne. “Being in a league of our own isn’t about being set apart – but rather staying connected to the heart of it all, paving the way for others. Our powerful brand is bolstered by an incredible sales team and very loyal admin and support team.”

While important, technology and processes are only secondary supporters of people at Dogon, and people are what makes the company great. Asked plainly what separates Dogon from the rest, Horne’s response is unmistakable: “Our people,” she confirms. “We pride ourselves on service excellence and holistic relationships nurtured over decades.”

These relationships have been built

by Dogon’s people over many years and this keeps Dogon in pole position.

“Cape Town is our main selling arena; however, we list properties via our nationwide network that we know will appeal to our client base,” says Horne. “Dogon’s longstanding Atlantic Continues on page 84

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INDUSTRY FOCUS: PROPERTY

Continued from page 81 Seaboard and City Bowl success is wholly attributable to our teams who continue to dominate in those territories via synergistic relationships.

I’ve personally had numerous requests recently to source homes for company executives relocating to Cape Town from up north. My most recent request was sourcing a Constantia wine farm for a long-standing Dogon client. As a group, we’re currently spearheading 29 developments in niche areas across the city, and because of the prominence of those areas, we’re connected to both national and international elite.”

These elites are tempted into famous Dogon offices around the region thanks to innovation and clever marketing, helping to again set the business apart from others.

“We have two main offices, our futuristic flagship office in Sea Point and our new Claremont office which is more than double the size of its predecessor and accommodates our ever-growing team in that territory,” says Horne.

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COVID PIVOT With face-to-face viewings and appointments in branch cancelled during the strict South African lockdown in early 2020, some real estate agents were left reeling, unsure about how to work effectively, and slow to react allowing buyers to migrate to competitors. For Dogon, change was quickly counteracted with ambitious new models and ideas, and a switch to a digital approach.

“We pivoted; stayed flexible and tenacious,” states Horne. “We basically just made plans. From getting sellers to conduct video walk throughs when restrictions didn’t allow viewings, to agents conducting Facetime viewings, we had to think out of the box – and our results show it. Construction was halted on several of our developments but due to excellent planning they’re now all underway and on track for completion.

“The initial hard lockdown was a shock to everyone and of course we had to reign in our spending,” she adds.

“The first thing I did to keep the ship afloat was ensure that everyone was adequately set up to work and function optimally from home. Prudent decisions were made and despite it all we had 16

new agents join us during lockdown. It was business as usual – albeit operating very differently.”

This is perhaps the clearest indicator of a business that was organised well, while also being ambitious. Adding new staff, in a time where unpredictability was the nature, shows power that others simply do not have.

“Dogon’s stellar sales and rentals during all lockdown levels is testimony to our ability to adapt and create success during the pandemic. When many businesses were folding, we not only survived, but grew through capturing competitor market share,” continues Horne.

“Personally, I was challenged by managing anxiety of the unknown and creating a structured environment for my two children. In terms of Dogon, it was pivoting a business heavily reliant on face-to-face interactions.”

STRENGTH TO STRENGTH When Denise Dogon handed the reins to Alexa Horne, the brief was clear: Expand company success from the Atlantic Seaboard across Cape Town’s Southern Suburbs. This vision has been achieved, even through the challenging market conditions that have prevailed through 2020 and 2021, and the appetite for luxury property has continued. For Dogon Group Properties, work on the Fynbos development alongside others in the region, will help to drive business over the medium-term and beyond.

“Slowly but surely Dogon has won market share from other Southern Suburb agencies. We’re growing from strength to strength,” Horne smiles.

“Our plans are sustainable expansion with an emphasis on quality service and employing the right people.

Focused on that, growth is inevitable.

Another core focus is cultivating our development team. Their exponential success is incredible, and we have numerous exciting developments in the pipeline. We don’t aspire to be the biggest agency, nor do we aspire to be everything to everyone. Size and

DOGON GROUP PROPERTIES

// OUR BUSINESS HAS BEEN BUILT INTERACTION

BY INTERACTION, PROVING THAT RELATIONSHIPS ARE THE BRICKS AND MORTAR TO SUCCESS // domination are overrated and come with their own set of problems. Dogon is a dynamic group of individuals – we love what we do and we’re able to pivot quickly in ever-changing environments.

Herein lies our power.”

Horne is keen to ride this wave and continue investing in growth. This means attracting more brilliant people to join the experienced and determined team.

A modern leader, she is only concerned about people’s abilities and what they can bring to the team. This is clearly another driver of the company’s success.

“I support anyone with the right attributes to join our team – motivated, hardworking, and an eagerness to learn. My new PA, for example, was appointed well into her pregnancy. She was quite shocked! But why wouldn’t I appoint someone that’s such a great fit and with all the requisite qualities? As a mother myself, I am of course incredibly

supportive of workplace mothers and women. I like to think I’m supportive of everyone. I have an open-door policy with my staff and with women especially, I always encourage them to master what they have – then innovate.”

For many agencies right now, pressure on cost has been overwhelming. The challenges of the pandemic combined with a changing marketplace have resulted in many turning to technology in a bid to replace people and reduce costs. This is not a strategy which Dogon will take, and Horne is clear that success in this industry, especially at the top end, comes from relationships which are nurtured by human beings.

“Digital technology will never replace human interaction - especially at the level where value adds in the luxury sector, like personal service or skilful negotiation, are required. But yes, we do embrace

technology with all its innovations and advancements. At Dogon we control tech.

It doesn’t control us.”

With developments including the Marlo, Alpha One, Station House, 26 De Longueville, Steenberg Green, and of course, The Fynbos alongside many more, Dogon continues to enhance the Cape Town skyline while bringing high-net worth individuals to the region. Its national and international networks, innovative marketing, sterling reputation, and devoted leadership are sure to continue delivering for clients.

Horne is not distracted and remains committed to the strategy.

“To avoid complete depletion of your energy you can’t waste time on things that aren’t deserving of it. Don’t focus too much on the competition – be mindful of their market share and what they’re doing right – but stay true to your own strategy,” she concludes.

WWW.DOGONGROUP.COM

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GOLF DATA

Carrying the Flag

for SA Golf PRODUCTION: David Napier

Golf Data is the hardworking design, construction, maintenance and consultancy business behind many of South Africa’s world-renowned golf courses. Managing Director Gary Waage tells Enterprise Africa that this company continues on a growth path and is celebrating major success in Steyn City and further afield. www.enterprise-africa.net / 87

INDUSTRY FOCUS: PROJECT MANAGEMENT

//

In November, at a glitzy ceremony in Dubai, the eighth annual World Golf Awards got under way with attendance from those involved in the world’s most high-profile courses, home to some of history’s most famous sporting memories. These awards are all about celebrating excellence in golf tourism, world-class courses, and golf destinations.

South Africa remains one of the world’s premier golfing destinations, home to a number of the global elite golfers and an abundance of renowned

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courses. Beauty, excitement and tough all in one – golf in South Africa is special.

At the World Golf Awards, the St Francis Links in St Francis Bay was named the Best Golf Course in South Africa for 2021. This prestigious course is famed across the golfing world, claiming multiple awards and driving the success of sport in the region.

But it did not come about by accident. St Francis Links, like most in South Africa, was carefully planned and designed to delight. Jack Nicklaus was behind the concept. The world-famous golf legend has proven his ability as a course designer and his local team, Nicklaus Design, knows what is required to create the very best in South Africa.

A key ingredient in the recipe is Golf Data, a 32-year-old business headed by Chairman Robbie Marshall and Managing Director Gary Waage.

In 1981, Marshall established a small business called Lawn Doctor following completion of a turf management course from A&M University in Texas. Clear demand for his excellence on the greens came quickly and, following the establishment of Golf Data in 1989, Marshall partnered with Nicklaus Design in 1995 during a visit to Augusta National for the Masters.

Waage, Marshall’s nephew, joined the team in 1994, becoming MD in 2012.

As the former Head Superintendent at Pecanwood Golf and Country Club (another Nicklaus-designed course), Waage has helped the company to grow into a globally-respected, award-winning organisation that operates across different disciplines including golf course construction and maintenance, general landscaping, design, and consulting.

AWARD WINNING “We started as a small, family-owned business,” Waage tells Enterprise Africa. “We have grown from a small greenkeeping business to a large organisation that has won the coveted Golf Digest ‘Best New Course’ award on six occasions, involved in 25 of the top 100 South African courses and our Chairman was awarded Complete Golfers most prestigious award, the ‘Lifetime Contribution to Golf Award’.”

Today, the company and its 600 employees operate country-wide but is headquartered between Somerset West and the major Steyn City estate development in Gauteng, between Johannesburg and Pretoria. The golf course at Steyn City, built by Golf Data, is a marvel.

GOLF DATA

For many years, the site sat unused as an old quarry. The land was dry and dying – wasted space and waste opportunity. But insurance magnate Douw Steyn purchased the site and transformed it to a lush green space – soon to be home to one million newly planted trees – creating employment and prospects. Nicklaus wanted a course that was visually stunning but highly playable, encouraging amateurs to return. 430,000 cubic meters of soil was moved to begin construction. Huge amounts of sandy loam soil was then brought in to create even fairways. The course crosses the Jukskei River and required extensive work to create a grey water irrigation system. This challenge was welcomed by Waage and team.

“The Nicklaus-designed course is our seventh and latest masterpiece.

Steyn City is quickly becoming iconic

in the golfing industry and a must play on the Gauteng and South African golf circuit,” says Waage.

Jack Nicklaus said that creating courses like this is now his passion.

“Designing a golf course is my total expression. My golf game can only go on so long, but what I have learned can be put into a piece of ground and that will last beyond me.”

For Waage, the Steyn City course is yet another feather in the cap for this industry leader.

“In conjunction with Nicklaus Design (one of the biggest signatures that can be added to a golf course project), we designed and constructed the golf course while a nursery was established to grow and supply plants to the estate during development. The course creates a hype in the market, and the clubhouse doubled as a sales/

marketing centre for the estate that for a comparatively small budget established the brand and destination helping sales once the development was launched to the market.”

The South African Landscapers Institute (SALI) commended Golf Data with two awards of excellence for its work at Steyn City. A Trophy for Best Specialised Turf Construction, and a Gold Award for Specialised Turf Construction at the Steyn City High School Sport Fields were acknowledged

by National Judge Sbu Dladla.

STRIKING PORTFOLIO A glance at the company’s track record reminds the industry why Golf Data is an industry leader. A who’s who of South African golf has trusted the company to perform. Durban Country Club, Humewood, Leopard Creek, Glendower,

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INDUSTRY FOCUS: PROJECT MANAGEMENT

Pearl Valley, Randpark, Hermanus, Johannesburg Country Club, and Royal Johannesburg are just a few listed on the Golf Data resume.

“We started off building golf courses and then maintaining them. We have been doing this for some time and we have quite a large portfolio with the maintenance that we do across a large range of courses,” admits Waage.

“There are two parts to the business: the maintenance division and the construction division.

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That is our core business but one market we have also ventured into is landscape installations and landscape maintenance, meaning we are not only golf. We can handle anything to do with landscaping, shaping, planting, design etc,” he adds.

In the future, Golf Data’s association with Nicklaus Design will continue to prove its worth as the company looks for international expansion.

Already boasting a sterling reputation, this world-class player sees major opportunities in other geographies, with stronger economic conditions and improved investor confidence.

“We are trying to expand overseas and pick up work in Europe and elsewhere,” explains Waage. “We are busy tendering and we are interested in getting our name out there. Golf Data’s aim is to be the very best at what we do, and in that process create long-lasting relationships with our business partners.”

Of course, South Africa is where Golf Data started and where Robbie Mitchell and Gary Waage have made a name for themselves. Without doubt, the maintenance arm of the business will continue to thrive in SA, and for every new development that is explored, Golf Data will be top of the list when it comes to a turnkey solution.

“South Africa has its challenges but if you an entrepreneur you can certainly make it work here,” says Waage.

STILL SWINGING The company managed to survive through the pandemic where many struggled, with South Africa’s lockdowns some of the harshest around the world.

Working outdoors and continuing with maintenance on some of the most esteemed courses in the country, Golf Data saw a slowdown in new investment spend but adapted to continue serving its clients, who are viewed as long-term partners.

GOLF DATA

// WE ARE TRYING TO EXPAND OVERSEAS AND PICK UP WORK IN EUROPE AND ELSEWHERE // “It was tough,” admits Waage. “The lockdowns were severe and when you are not invoicing, your cashflow is knotted - it tests how strong you are financially. At the same time, with maintenance, that is a good annuity business and, fortunately, our clients still needed to keep their courses alive and complete maintenance.

A lot of our clients were very supporting and wanted to make sure that staff and suppliers were paid. Construction was where we felt the pinch as we were simply not producing anything and therefore not able to invoice. As hard as it was, we got through it.”

In May, following this challenging period, Stellenbosch wine estate Hazendal unveiled its brand-new international standard 18-hole Golf Data designed and built course. This challenging project saw the Golf Data team faced with an overgrown site, ravaged by alien species, requiring a major overhaul to shape a shorter but exciting course. Local trees and shrubs were planted, and Golf Data rolled out the finest turf on the market for the greens – the same as would be used at any full-sized championship course. The multi-function site is now home to a driving range, practice course, putting green, and sits on a vineyard with hotel, restaurant and all associated hospitality offerings.

“With a heritage of 30 years in the golf and landscape industry, Golf Data has become an industry leader backed by experience and skilled expertise,” says Waage.

“With our wide range of services we are able to reduce risk and act as a single point of contact for all your green areas needs.”

Waage is confident going into the future. The business is a long-term creator of opportunity and delivers beauty in South Africa’s outdoor environment. As its brand grows, thanks to awards like the recent success of St Francis Links, this is likely to be a company that can celebrate international expansion.

“We focus on creating relationships and delivering quality based products. We are proud of our brand and the brands we associate with and strive to continually improve this image,” he concludes.

WWW.GOLFDATA.CO.ZA

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STANDARD BANK

The Best Bank

in Africa, Officially PRODUCTION: Benjamin Southwold

Standard Bank Group (SBG) is no stranger to recognition of the quality of its provision, and this year has been no different. Battling extraordinary circumstances it has emerged triumphant, and now looks to future-proof itself through a continued evolution into a digitally-enabled, diversified services organisation. “Africa is our home, and we drive her growth,” sets out Sim Tshabalala, Group CEO SBG. 92 / www.enterprise-africa.net

INDUSTRY FOCUS: FINANCE

//

“We are a proudly African, integrated financial services group with compelling competitive advantages,” SBG explains, “providing banking, insurance, investment as well as non-financial complementary solutions that drive the financial wellbeing of our clients at every stage of their financial journey.

“Our differentiator,” it continues, “is our long-term commitment to Africa, our home, underpinned by a heritage of over 150 years on the continent.”

Pushing economic growth has been a pursuit which has extended across the African continent and beyond through the group’s multiple divisions. “As a connected, real economy bank, our insight and experience helps unlock opportunities and mitigate risk for our broad range of clients,” SBG underlines. “Standard Bank has a proud history of serving clients and supporting economic development across Africa as the largest financial services group on the continent.”

SIMPLY AFRICA’S BEST Standard Bank operates in more than 20 countries in Africa and abroad, a worldwide presence consisting of an integrated suite of end-to-end wealth management services and banking solutions. Fittingly, it was the prestigious Global Finance that bestowed upon Standard Bank Group the ultimate honour of best bank in Africa in the 28th annual World’s Best Banks listing, as well as in both South

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BY OFFERING MORE OF THE SERVICES AND SOLUTIONS THAT OUR CLIENTS NEED // 94 / www.enterprise-africa.net

Africa and Uganda, individually.

Performance over the year at hand is a major factor in consideration of the worthy winners, alongside multitude other criteria including reputation, management excellence and leadership in digital transformation and corporate citizenship.

“To be recognised in this way by Global Finance is a great honour for the Standard Bank Group,” enthused CEO Sim Tshabalala. “Over the past year we have had to work even harder than usual to support our employees, clients and communities during difficult circumstances. I’m delighted to accept this award in grateful recognition of the excellent work done by my dedicated and resilient colleagues throughout our business.

“These awards are testament to the trust placed in us by our clients, and as we look forward towards 2022, we’re focused on creating more solutions for our clients across Africa and helping them achieve their goals.”

Standard Bank’s deep understanding of the continent, the product of its more than 150 years of business in Africa, was acknowledged as central to its performance during the Covid-19 pandemic and key initiatives underway in its operational markets, such as its OneFarm platform. Highlighted for specific praise, OneFarm Share has partnered

// WE’RE FOCUSED ON CREATING MORE SOLUTIONS FOR OUR CLIENTS ACROSS AFRICA AND HELPING THEM ACHIEVE THEIR GOALS // with HelloChoice, a digital agritrade platform, and FoodForward, a beneficiary network, to match excess produce from farmers with certified food recipients.

As a result, food is procured at a reduced cost or donated by farmers and then provided to beneficiary organisations, allowing OneFarm to have already provided six million meals to people across South Africa.

Global Finance also singled out Standard Bank’s partnership with Salesforce for praise, its initiative to power the group’s digital platform and service the bank’s ecosystem of clients. “The partnership between Standard Bank and Salesforce will allow both organisations to cocreate bespoke solutions for clients,” SBG detailed, “also enabling them to create solutions themselves by partnering with the Group’s service providers and vendors.”

INDUSTRY FOCUS: FINANCE

STRATEGY DRIVES TRANSFORMATION The innovative bent of the business saw Standard Bank again among the big winners, this time at the 2021 World’s Best Digital Banks Awards in Africa, selected for multiple awards across seven categories including Best Consumer Digital Bank in South Africa and Best Corporate/Institutional Digital Bank in Africa for both Trade Finance Services and for SME Banking.

“Over the past few years, Standard Bank has made significant structural changes to better serve clients,” the group stated, and it has paid off in multiple areas including the strength of

its strategy for attracting and servicing digital customers, breadth of product offerings and evidence of tangible benefits gained from digital initiatives.

“These shifts have allowed the Group to realise a more seamless delivery of financial services to its diverse customer base, reduce time and costs, and allow the organisation to innovate more quickly and efficiently.” The Covid-19 pandemic has only served to accelerate the rate of this change, and despite the obvious challenges, the crisis has presented numerous opportunities to problem solve, be creative and be innovative.

“With the global pandemic

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forcing people to conduct their personal and professional banking activities from their phones, tablets and computers, digital banking took on an importance and prevalence far beyond anything that had come before,” said Joseph Giarraputo, publisher and editorial director of Global Finance.

“We will continue leveraging our scale advantages and strengths to defend and grow our current position in the market, while accelerating toward our 2025 ambition of becoming a client-centric, digitally-enabled platform business,” responded Adrian Vermooten, Chief Innovation Officer at Standard Bank Group. “We are creating new solutions and new partnerships to serve our clients better and grow our revenues across Africa, our home. These awards are testament to the excellent

STANDARD BANK

leadership within the organisation and our incredibly committed employees who have been walking this digitisation journey with us.”

FUTURE-READY “The financial world is evolving rapidly,” Tshabalala says, “and we are excited about the opportunity that this presents to the group. We are focused on ensuring that we remain relevant by offering more of the services and solutions that our clients need.” Accelerating the execution of its strategy to become future-ready, SBG has already made significant internal structural changes, with the revised segments serving clients using all the preferred physical and digital channels.

The next phase of the existing business strategy will build on the substantial investments already

made by the Group into employee development, digital technologies, infrastructure upgrades and strategic partnerships in recent years.

“Transforming Standard Bank Group from a traditional financial institution to one that is defined by modern innovation will enable it to deliver on the promises made to help Africa grow, develop and fulfil its potential,” SGB declares.

It seems to be working, with the interim results for 2021 reflecting a recovery in client activity, an improved outlook and the strong momentum in the underlying business. Headline earnings were up 52%, while return on equity (ROE) rose from 8.5% to 12.9%. The group’s capital position also remained robust, with a common equity tier 1 capital adequacy (CET1) ratio of 13.5%.

“The first six months of 2021

were another exceptionally difficult period for many of our clients, staff and stakeholders,” commented Tshabalala, “but we are now hopeful that the worst phase of the pandemic is behind us.

“Our underlying business has strong momentum and, relative to this time last year, we have seen a recovery in client activity, an improved outlook and lower impairment charges. The global backdrop is expected to remain favourable, supported by sustained low interest rates, continued fiscal stimulus and consumer demand. We look forward to building on the progress we have made in 1H21 and remain steadfast in delivering on our purpose.”

WWW.STANDARDBANK.COM

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BASIL READ MINING

Driving Deep Successes

in Northern Cape PRODUCTION: David Napier

Basil Read Mining has completed a number of high-profile projects across sites all over southern Africa, and is now looking forward to a new long-term arrangement in the Northern Cape. CEO Nathan Williams tells Enterprise Africa that the company is in a good place following the pandemic and is excited about future prospects.

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INDUSTRY FOCUS: MINING

//

The South African mining industry is unquestionably a key driver of the economy.

This is not a revelation. Since 1867 and the discovery of diamonds and then gold, mining has been the country’s backbone, providing opportunities and employment for millions, while supplying the world with much-needed mineral resources. South Africa should be praised for the work this sector has completed as part of the development of global industries. Diamonds, gold, copper, iron ore, platinum, manganese, chromium, uranium, titanium and much more has been unearthed and exported.

But, in modern times, the industry has been faced with growing and changing challenges. Concerns around safety, environmental impact, morality, financial constraints, and more have resulted in an atmosphere of red tape and worry. Even with the major companies of the world

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operating modern, efficient, worldclass organisations, each investment decision is scrutinised like never before. This has been compounded by the Covid-19 crisis. Growing, developing, and sustaining a modern mining operation in South Africa is no easy task.

However, there are brilliant companies in South Africa making mining an exciting prospect, resilient to future change and a leading adopter and creator of technology.

In May 2022, the Investing in African Mining Indaba will once again take place at Cape Town International Convention Centre (CTICC) following cancelation in 2021

and a rescheduling from February’s initial new date.

In the build up to this event, Basil Read Mining – a shining star within the embattled Basil Read Group – has been consolidating its customer base, delivering world-class solutions, hunting for large projects, and investing in its stakeholders to build a business ripe for further innovation and development.

MINING EXPERTS The mining arm of Basil Read specialises in surface contract mining, which includes drill and blasting; load, haul and dump; material handling; in-pit water management; bulk earthmoving;

// THE THING THAT EXCITES ME IS THAT WE ARE SIX MONTHS IN AND WE ARE ALREADY LOOKING AT EXPANDING THE PROJECT //

BASIL READ MINING

thin, thick and multiple seam mining; mine spoils rehabilitation; mobile plant maintenance; and management services to the mining, quarrying and construction industries. Established by engineer Basil Read in 1952, this is a group intertwined with South Africa’s own history.

CEO of Basil Read Mining is Nathan Williams and he tells Enterprise Africa about progress with exciting projects in what remains a key industry.

“We are involved at De Beers Venetia Mine where we are doing some of the last open pit mining there before they move into underground operations. We will finish there mid2022,” he begins.

“In Botswana, we recently finished a project at Jwaneng and we landed a new five-year contract, with a partner, at Morupule Coal in October.

“In Namibia, we are busy finishing

// IT OPENS A LOT OF OPPORTUNITY FOR SAFETY AND PRODUCTIVITY IMPROVEMENTS AS WELL AS FINANCIAL GAINS AS YOU GET INTO LNG FUEL TECHNOLOGY OR EVEN DIESEL ELECTRIC // a project with Swakop Uranium at Husab. We will move a lot of the kit from there back to South Africa.

“We have just completed a contract at Navachab alongside a local partner. We are also excited about the potential Tschudi copper project which is coming up in the New Year.

We bid on that project as Basil Read Mining Namibia.

“In South Africa, we are bidding on work in the iron ore space for work at Sishen and Kolomela mines, and we are looking at work with ferromanganese with Samancor. There are lots of opportunities in the Northern Cape,” he says.

GAMSBERG In April 2021, the company landed a significant contract at Gamsberg mine in the Northern Cape. Next to the town of Aggeneys, Gamsberg is part of the Black Mountain Mining Operations, owned by Vedanta.

Initially, Basil Read Mining put a strong fleet on site consisting of a Liebherr 9200, a 915 and a 984 alongside a number of smaller trucks. The company started our drilling 25,000 metres per month.

“Gamsberg becomes a very important replacement project as Continues on page 104

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LIEBHERR-AFRICA: THE WEAPON OF CHOICE IN OPEN CAST MINING Liebherr-Africa has been partnering with Basil Read Mining for more than 20 years. The reason? Global mining expertise developed to thrive in South Africa’s harsh conditions.

Liebherr-Africa, established in 1958, is one of the oldest locations outside of Germany for this famous brand. Originally manufacturing and selling cranes and concrete mixers, the company has developed to become a leading supplier of mining equipment, recognised around the continent for volume, durability, quality, and strength.

For more than two decades, Liebherr has been trusted by South African powerhouse Basil Read Mining.

Shared values and desire for excellence make for a symbiotic relationship; one which keeps material flowing through South Africa’s vital mines.

“I would describe the relationship as a partnership built on trust, honesty, integrity and transparency.

Providing reliable hard rock equipment and service excellence, and creating a win-win business relationship for both parties,” says Liebherr-Africa Mining Sales Manager, Pierre Berrange.

“Due to Liebherr’s wealth of experience and worldwide footprint over many decades, the company is a significant solutions provider across various equipment needs including hydraulic excavators, rigid dump trucks, mining dozers, and mobile cranes,” he adds.

The Liebherr range is now a benchmark in South African mining and Basil Read Mining began using the huge R984 excavator back in 2001. More recently, the two companies have adapted to new challenges in mining by introducing the R9200, an excavator offering the biggest payload in its class.

“In partnership with Basil Read, the very first Liebherr R9200 excavator in the world was tested at the Assmang Beeshoek Mine in very harsh conditions. It performed exceptionally well and since then set the benchmark for 200-ton class excavators. Due to the outstanding performance and productivity of the Liebherr R9200, the test period was shortened by six months and Assmang purchased the R9200 prototype, with a further three R9200 excavators,” says Berrange.

The Liebherr range within Basil Read Mining has continued to grow and, as new projects come online, this collaboration will expand further.

“Currently there are various expansions in the pipeline” notes Berrange, “and the forecast for the next few years look very promising for both partners, with current projects across Botswana, Namibia, Lesotho and South Africa.

“As the partnership grows, there may be a possible extension on their Liebherr product line. Liebherr is looking forward to testing future equipment in partnership with Basil Read due to their expertise in open cast mining and their extensive experience in running larger fleets of mining equipment.”

Currently, Basil Read Mining is utilising Liebherr equipment on site at the exciting Gamsberg mine in South Africa’s Northern Cape, mining undeveloped zinc orebodies through a large open pit mine and a dedicated processing plant.

The project was opened in March 2020 and Basil Read Mining was selected in April to handle open cast mining activity. This was another opportunity to put Liebherr to the test.

“Basil Read Mining put their new Liebherr R9150B to test under tough conditions, it impressed as just as much as the Liebherr R9200 excavator did, especially with the match on the 100-ton trucks, making the operation much more efficient and effective,” says Berrange.

A new fast and powerful Liebherr R9150B works 550 to 580 hours per month, at an average availability of 92% at 3450 machine hours. “Liebherr machines are our weapon of choice when it comes to hard rock opencast mining,” states Basil Read Mining.

For all the challenges faced by South Africa’s mining industry, Liebherr is a reliable and lasting partner.

More than 50 years’ experience, global presence, a large range, and industry leading efficiency stats make Liebherr the go to name in design, manufacturing and support of mining machinery, even in the toughest of conditions.

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INDUSTRY FOCUS: MINING

Continued from page 101 Venetia closes. It is exciting that, not only did we land that project in April 2021, we are potentially looking at growing there,” says Williams.

Vedanta is waiting for assurances from the South African government around issues of water, power, and fiscal stability before it makes the final decision on expansion at Gamsberg, but so far has committed R21.4 billion to phases one and two and the smelter. Eventually, production capacity will reach four million tonnes of ore and 250,000 tonnes of zinc-in-concentrate per year. The 30-year project will fuel a zinc industry which sees demand currently outstripping supply.

“The thing that excites me is that we are six months in and we are already looking at expanding the

project. Initially we signed up to move 1.3 million tons per month and we are hoping to expand that significantly as the project grows,” says Williams.

Away from mining, Basil Read Mining as a division of the wider group also works across the quarrying sector and has several significant contracts underway right now.

“We operate in 26 other quarries in South Africa through our blasting and excavating subsidiary. We also offer a rebuild and specialist and maintenance service under another brand across southern Africa.”

FLEET POWER For Williams, there is no doubt that the strength of the fleet separates the company from others. “We have more than 1000 employees and we own and maintain a fleet of mobile mining equipment that can be deployed to

meet clients’ requirements, anywhere across the region,” he says.

And in the future, where the economic outlook remains unclear, Basil Read Mining is investing in R&D to ensure efficiencies. South Africa’s share of global exploration budget has been falling for more than a decade, its 2021 exploration budget makes up just 19% of all SADC nations, the country ranks outside the top 10 when it comes to mining investment attractiveness for Africa, and the number of listed mining and exploration companies continues to dip. But, the industry employed more than 500,000 people in 2019, contributing more than R527 billion to the economy and attracting foreign inflows with more than 60% of mined material heading abroad. Clearly, there remain opportunities for those able to innovate.

// IN SOUTH AFRICA, WE ARE A LEVEL-1 CONTRIBUTOR IN TERMS OF ECONOMIC EMPOWERMENT. WE ARE PROUD OF THAT AS WELL AS OUR ENTERPRISE DEVELOPMENT INITIATIVES //

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BASIL READ MINING

“We are trying to consolidate clients and move into the technology space where we can introduce automated equipment. Because of the nature of that kind of investment, it’s better to do with consolidated, long-term clients rather than experiment across a range of small contracts,” says Williams.

“It opens a lot of opportunity for safety and productivity improvements as well as financial gains as you get into LNG fuel technology or even diesel electric. We have traditionally played in the 100-ton and 200-ton excavator arena, but with consolidated clients we see the opportunity, especially with zinc and iron ore, to go in with 180-ton trucks with 400ton excavators. Getting into larger equipment again opens up a whole new market for us.”

Currently, Basil Read Mining employs the world’s best from Liebherr alongside other proven brands. At the Beeshoek Iron Ore mine in the Northern Cape, Basil Read Mining was the first company in the country to use a Liebherr R 9200 Mining Excavator, powered by a single Cummins QSK38 diesel engine, delivering a gross power output of 810 kW (1,086 HP). The machine was well-suited to deal with temperatures of 50 degrees Celsius, loading 100-ton trucks in five passes.

FUTURE PROOFING Basil Read at group level, and through its mining division, is committed to embracing good corporate citizenship.

Focusing around key areas of Safety, People, Environment, and Society, Basil Read continues to make a difference beyond its core operations. To date, the company has spent R9.9 million on the development of its people, it has invested R7.5 million in CSI projects, the mining division achieved a certificate of Safety Excellence in pursuit of Zero Harm awarded by De Beers at their global safety day event at Venetia mine, there is an inhouse occupational health clinic for all

employees to make use of, and the group has developed a comprehensive environmental strategy which sees it continually evolving to reduce, reuse and recycle to leave minimal impact on the environment.

This effort will result in an improved appeal internationally as the company grows its horizons.

“In South Africa, we are a Level-1 contributor in terms of economic empowerment. We are proud of that as well as our enterprise development initiatives. We are also very happy with our CSR sphere and our progress with female empowerment which is an important topic in South African mining. At group level, we have female leadership in the developments division. We have recently developed career pathways and development frameworks which we hope to get to stage that can be accredited, giving our own employees a national or international accreditation. That sets us up for working on other continents,” states Williams.

In the future, as the mining industry continues to contribute more than 8% of South Africa’s GDP and where commodity pricing has buoyed miners – driving financial results and tax collections – Basil Read Mining will continue to thrive. For Williams, a slight reorganising of group structure to become a comprehensive solution

across multiple industries will help Basil Read to claw back brand recognition.

“We have Mining, Construction and Developments as our three divisions; we are looking at consolidating Construction and Developments. If we can create a closer bond between Construction and Developments, we believe there are efficiencies to be had. We can then get Mining and Developments closer aligned because the mining division is thinking about how it can expand its footprint beyond just blasting, drilling, loading and hauling, and we can actually complete mine design, mineral economics, and get into the advisory space. In terms of execution, we can then get into the processing space too and handle crushing, screening, and design and operation of process plants.

We want to become a holistic turnkey provider,” he concludes.

Unquestionably, mining still has so much to offer. Companies like Basil Read Mining are leading the way towards a modern and pioneering future where the country benefits from industry activity in a big way.

WWW.BASILREAD.CO.ZA

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PRESSURE DIE CASTINGS

Adaptation, Adjustment, Agility

Allow PDC to Prevail PRODUCTION: Karl Pietersen

In the most challenging of economic conditions, KZN-based supplier of brass, aluminium and zinc castings, PDC, has managed to deliver for its clients, resulting in a sterling reputation that is helping the company to win deserved market share. Managing Director Jaco Wiese talks to Enterprise Africa about his optimistic outlook for the future.

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INDUSTRY FOCUS: MANUFACTURING

//

For Jaco Wiese, Managing Director at Pressure Die Castings (PDC), 2020 was a whirlwind. An engineer by training, this young an energetic leader found himself crossing South Africa and relocating his family to take the reins at PDC. But a global pandemic, economic uncertainty, and supply chain chaos was what met him since he arrived in Pietermaritzburg.

Established in 1952, PDC has grown in size and influence. Celebrating 70 years in business next year, this unique manufacturing business remains in a strong position, despite the challenges of 2020 and 2021.

Supply chain constraints as well as employment requirements have amplified the need for a thriving local manufacturing industry, and PDC is working hard to carry the torch.

“I got involved in April 2020 and, from the investors’ point of view, the appointment of a young ‘industry outsider’ was a commitment that the metal and castings industry is still a vibrant and live industry,” Wiese tells Enterprise Africa. “We have a young team and we wanted to revitalise,

Employee collborating with AI

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// IT IS A GREAT TIME TO BE IN BUSINESS AND THE SHAREHOLDERS DO SEE NOT ONLY A FUTURE FOR MANUFACTURING IN SOUTH AFRICA BUT A COMPANY WITH A VERY STRONG BASE TO GROW FROM // bringing in new approaches but holding onto the established foundation that is already here.”

But organising a 250-person manufacturing operation, with a relatively flat hierarchy, in a single premises, and where all people are hands-on in the process, is no easy task.

Producing mostly brass, aluminium and zinc components for multiple industries including building, plumbing, automotive and power, PDC and Wiese had to adapt quickly to the new normal as Covid swept through the country.

COVID CONTAINED “We were well-protected through South Africa’s first and second wave,” he says. “We invested in our people and their families early, getting good

quality masks and sanitiser. We audited each person and looked at what living conditions are like and how we could assist. We paid all our suppliers early to ensure they can continue and assisted those which requested assistance in advice or direction when Covid first came on the scene. We set that trend very early on and we spent a lot of time on education of our staff and direct community. The result was that we didn’t have a lot of issues through the first and second wave.”

In the second quarter of 2021, South Africa hit a third wave as the country’s vaccine rollout remained slow.

Businesses again had to adjust to a changing environment.

“The third wave was difficult,” admits Wiese, who had only been in the

PRESSURE DIE CASTINGS

business for 12 months at this point.

“We had senior people away sick and we had to move guys around. We had to be more fluid at that time but we did make it work. It was not the biggest issue that we faced.”

Global and South African attempts to fully re-open economies and return to some form of normality, together with people having to go about travel and business again, resulted in PDC realising positive cases. Thankfully, a culture of quick decision making, adjusting and adapting to needs of clients, and a nimbleness that is not present in big international manufacturers resulted in PDC continuing to serve without major interruption. This is a business that is dedicated to its clients and willing to rethink strategies to achieve results.

This nimble nature was instilled before Wiese arrived and has been a key driver of success over the years. Thanks to this, and several other contributing success factors, PDC shareholders are setting out a vision for ensuring a growing South African manufacturing business, using current clients as a base while constantly innovating.

“I moved my whole family right across the country, but I have never looked back. We are loving it here and I am loving the culture of the company and everything that we stand for,” says Wiese.

“We are positive about the future,” he adds. “The one thing the past year has taught us - around the world and inside PDC - is that we always think things will become more difficult. If you actually look at how people have reacted to the pandemic, there has been a lot of growth and a lot of positivity.

We believe that our order book will continue to grow, and we believe that if you have made it through this then you will be able to grow in a big way.”

CNC Machining

BULLISH A specialised high-pressure die caster, the company services clients around the country and internationally, always ensuring the best process solutions.

Initially established in SA making steel window fittings, electrical transmission componentry, and even horseshoes and other pieces of riding equipment at one point, the company grew into other sectors, spawning the development of many companies within these specialised spaces. Today, the company’s chosen metal is brass, with various building hardware – especially window fittings, handles, and hinges locally - and automotive remaining key industries.

// IF YOU WANT TO BE A MANUFACTURER IN SOUTH AFRICA, YOU HAVE TO BE ABLE TO REACT WHILE BEING STABLE //

“Over time, we have grown to where we are now as a privately-owned company that concentrates on a client first approach, supported by a strong technology set,” says Wiese.

Competing locally against imports from the East, PDC has always had to remain price competitive but with a heavy focus on quality and delivery.

Bulk containers full of parts being shipped around the world from China, Vietnam, Thailand or elsewhere struggle to react as fast or provide customer support as accurately as for product coming from PDC’s Pietermaritzburg facility. For this reason, local customers are very keen to invest in long term local partnerships.

“We are seeing a massive uptick in demand globally and locally as people are revisiting how their supply chains work. There is obviously a mishmash in the supply chain and a lot of confusion,

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INDUSTRY FOCUS: MANUFACTURING

resulting in lost sales opportunities as stock levels run dry. Being an established company, and having an innovative approach, we are seeing that we can actually address and react to the demand that is spiking in different areas of our business. We are fortunate to be in business in a booming market segment with established and loyal customers. The shareholders do see not only a future for manufacturing in South Africa but a company with a very strong base to grow from,” states Wiese.

But for manufacturing, the figures paint a stark picture. Manufacturing production increased by 1.3% in September 2021 compared with September 2020 but seasonally adjusted manufacturing production decreased by 3.9% in the third quarter of 2021 compared with the second quarter of 2021 with Stats SA highlighting negative growth rates for the period across eight of the ten manufacturing divisions. Covid and civil unrest in July continues to blight manufacturers.

Weak local demand, fiscal austerity, and the ongoing power crisis have dimmed confidence in the industry with many hoping for a rebound in importer economies that will drive pipelines.

Asked if this negativity has been felt at PDC, Wiese reports a contrasting view.

“South Africa is a vibrant economy,” he says. “Although we see things being very tough in this country – and they are, we have a lot of challenges – there are people who want to make the country

// IT’S NOT A SCIENCE FICTION MOVIE – IT’S VERY TANGIBLE IF YOU JUST LOOK AT IT. WE WERE AMAZED AT HOW MANY THINGS WE ARE ALREADY ON TOP OF // 110 / www.enterprise-africa.net

work. We can see that the formal and specifically informal economy is very much alive. Manufacturing is struggling due to power cuts and supply chain issues, but the demand side is very alive and we are bullish about where the economy can go.

“We try to be dynamic, innovative and try things that we think will work so we can take our teams on a journey,” he goes on. “If you want to be a manufacturer in South Africa, you have to be able to react fast while keeping your feet grounded. We as South Africans fortunately have a tenacity and innovative drive which helps us to realise this. You must be a stable supplier, with stable foundations, but you need to be able to react and incorporate technology so that you can stay nimble and address issues. There are many challenges in South Africa, but if you can embed a culture where people stay nimble then we can adjust to these challenges – that is what makes manufacturing work.

Obviously, a good set of clients and a strong order book gives you runway to dream, and PDC is blessed with that, but if you don’t react to reality you will die so you must stay nimble.”

SMART FACTORY As well as staying nimble and delivering first-class product and service, PDC is investing in the future and looking at new tools to drive efficiency and add to its thriving human capital. The South

African government is backing a Fourth Industrial Revolution drive, and there are obvious benefits for automation and digitisation. The PDC team is busy with a plan around the ‘factory of the future’ and the ‘Smart Factory’ but claims that many of the basics are already in place.

“We want to create value – that is what PDC is built on,” he says. “You have to create value for your customers, employees, shareholders and the government. To ensure longevity and to keep creating value for all, you have to innovate and stay competitive. That means bringing in new ways of doing things. The Fourth Industrial Revolution and the Smart Factory were things that we thought were being spoken about at big conferences and only applied to the big technology companies. Then we started delving into it and we realised that a lot of those concepts are already happening here and we just didn’t realise it. It’s not a science fiction movie – it’s very tangible if you just look at it.

We were amazed at how many things we are already on top of.”

Having factory-wide Wi-Fi access, automating basic counting tasks using AI, digitising packing operations to remove human error, and working on cloud computing systems to make the most of efficiencies is creating more value for customers and allowing employees to focus on innovation and creativity.

“We have Wi-Fi for everyone in the

PRESSURE DIE CASTINGS

factory and they are taught how to use emails and digital log sheets. It sounds arbitrary but that skill allows the guys to stop doing written sheets and reduce the amount of paper we use. All of this helps to digitise our environment and when you look at it this way, it’s not all about VR and AR; it’s very simple things,” Wiese reasons.

“One of the basic things, but one of the more exciting things that we have started realising is how accessible artificial intelligence is - automation and artificial intelligence is not to move people out,” he confirms. “We have a great example where a person can sit in the factory with a camera and the AI checks colour, quality and handles the counting, while the person packs the box with hinges and checking the mechanical quality of the part. The two work together to ensure quality

and remove the chance of packing the wrong colour hinges in the same box or other mistakes. It’s amazing how these things can work together and that is exciting.”

PDC hired server space through Google Colab, using the extra capacity to develop python code before executing, testing and understanding what resources would be required to run the system on a workstation desktop.

“We tested everything using cloud computing before localising and putting it all on our own system. The system now assists with ensuring customer satisfaction and the employee’s life is made easier. It sounds arbitrary, but it is very practical, it is tangible to us and it is not that difficult,” says Wiese.

90% of businesses in Africa are micro, small and medium sized enterprises and are non-digital. Start-ups, corporations,

“The PDC team is one of the most professional and efficient Company’s to work with. We look forward to growing our relationship with the Company well into the future. It has been a pleasure getting to know the PDC team and we wish them all the success for the next 70 years and more!” – Innovative Pvc Compounds (IPC)

and policymakers must ensure these organisations are not left behind and efforts are being poured into education, upliftment and reskilling to bring about digital transformation on the continent.

In 2019, President Ramaphosa said at a press conference around the Fourth Industrial Revolution that the country and its businesses must adopt technology, where possible, to drive improvement in the economy. “We have in a short space of time and rapidly changing technology advanced from being a nation of late bloomers to one of early adopters. To ensure that we are able to make waves, government has committed itself to a skills revolution that will give us the human capital required in the digital economy.” These skills are being driven within PDC as the company again leads by example in the manufacturing space.

IPC Innovative Pvc Compounds

www.innovativepvc.co.za | +27 31 500 1755 marketing@innovativepvc.co.za

SPECIALIST MANUFACTURERS OF PVC COMPOUND FOR INJECTION MOULDING AND EXTRUSION PROCESSES

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INDUSTRY FOCUS: MANUFACTURING

BUSINESS, BETTER Adjusting strategy to cope through the pandemic, pushing forward with a tech-based strategy to prepare for a competitive future, driving efficiency through digitisation, but always keeping long-held human skill and knowledge at the forefront of the business is positioning PDC on a robust platform for future growth. But it is a historic focus on excellence that has allowed the company to gain competitive advantage.

Wiese is keen to further build on success by highlighting the environmental attributes built into PDC products, not to boast but to emphasise a longstanding process considered the normal within the business.

“We make a product that lasts,” he smiles. “The product will outlast the person installing them in most cases. This longevity of the product is an attribute built into our product type and also a PDC product. In the same instance the re-use and recycling of material is built into our processes and supply chain over years. As humanity we have taken so much metal out of the ground and the supply is finite. It makes so much sense

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to recycle. At PDC we don’t really market that aspect of it. Recycling is embedded in our industry where there is a large volume of recyclable materials available.”

With foundries traditionally having a negative environmental connotation, PDC focussed on building in efficiencies long ago and continues to make use of recycled material, minimising wastewater and energy wastage, and is planning for further improvements.

“The environmental aspect, for us, is around efficiency. We want to do the same but with less energy. Most of South Africa’s energy is still derived from coal so our thoughts are around how can we use that energy better and not waste it. We are also thinking about what we can do directly to get green energy on our site.

These are the most relevant questions in the environmental space right now,” suggests Wiese.

Like many companies in South Africa, where the sun shines for 2500 hours each year, PDC is investigating the potential for a rooftop solar installation. A factory with a high base load and a roof space of around 7000 m2 provides the perfect base for a sizeable project.

“We are investigating that now,” confirms Wiese. “Solar panels have proven themselves technically and they have proven that the cost has diminished to a point where they will not get much cheaper per kilowatt peak that you install. PPA style funding models with a positive cash flow from day one have also matured and proven to be viable. Now is a good time to consider it and that is why we are getting quotes. We already have many efficiency projects, but solar on the roof would certainly be impactful. If we go ahead with it, we would be looking at an installation of just below 1MW.” For the 250 people active at PDC in KZN, this constant feeling of forward momentum and an ongoing desire to do the right things by the customer, shareholder and environment drives a culture of excellence and ambition. This is the catalyst of quality and the reason the company enjoys long-lasting relationships with its clients around the world.

“If you create value, you are at the forefront and you can grow the business.

A growing business is good for everyone in the business,” says Wiese.

“We have a healthy people and business culture and that comes from a number of things. Innovation helps, the industry and market momentum helps, but it is all about the people,” he adds.

PDC funds and operates an onsite clinic and offers accessibility for people who struggle to get time off to visit the doctor. They can walk over and see a doctor, collect meds or see a professional about any medical or social problems. “It helped during Covid with the vaccination drives and education around the pandemic.

At the end of the day, a company is people and we think that value we put into people comes back into the business through an amazing culture,” says Wiese.

According to Forbes, positive company culture – especially in manufacturing businesses – can lead to strong brand image, healthy employee identity, and solid retention rates. PDC is the proof of the theory.

PRESSURE DIE CASTINGS

Inspection Robots

HEALTHY OUTLOOK With economic conditions expected to remain unstable for the foreseeable, both globally and in SA, and manufacturing as an industry continuing through a transitional period, future outlook for most is unclear. But at PDC, an optimistic approach to growth, building on years of history and durable partnerships, is helping to bring about clarity.

“Right now, our first, second and third focus is our current clients,” says Wiese, unequivocally. “It is an uncertain time and if you leave clients without a quality product then you are dropping them. Our growth strategy launches from that. It’s not wise to chase something else and lose what has been so good for us over the years. Our growth strategy is all about a quality product, quality service, and looking after our current clients.”

This means the company is not actively seeking out new business, but rather being entrepreneurial and inventive in its approach.

“We are looking at different areas and thinking about the skillset and technology that we have and where

we can apply it in other geographies, industries or product ranges. For us, it’s all about building long-term relationships – that is the core of our growth strategy. We are not chasing specific numbers by specific dates.”

For PDC, lasting relationships are about shared value with suppliers and customers. The company is able to offer such a wide variety of products and services – including a fully equipped tool room and end-to-end in-house tooling solution – they can find a solution for all customers. PDC starts with customer need and then goes about finding the most suitable solution.

“We have a very hands-on team in the factory and they know all there is to know about the mechanics and electricals. We have a very flat structure and an open-door policy. We share and talk to everyone. Because of that culture, combined with an innovative way of working and trying to solve problems, we have a great system and everyone in the company remains involved in all aspects,” explains Wiese.

Having overcome the initial shock

of taking over a company during a global pandemic, steadying the ship and focussing a strong workforce with a brilliant ethos, Wiese and PDC, and specifically PDC’s clients and suppliers, have been able to capitalise on PDC’s ability to react positively where others may be struggling. Finding opportunities, respecting existing relationships and remaining calm when times are tough is a key trait of a lasting business. PDC has this in abundance and, for Wiese, the future is bright.

“I’m happy and feel very fortunate,” he smiles. “I landed here in what the other guys had built. A lot of credit must go to the company, things didn’t just happen. Adaptation, adjustment, implementing solutions quickly, and reacting to the needs of clients was essential. Without that, we would not have had the good year we have been experiencing.”

WWW.PDC.CO.ZA

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BSI STEEL

Overcoming Challenge and

Uncertainty to Forge a Steel Icon PRODUCTION: Timothy Reeder

South Africa’s leading steel merchant and steel supplier, BSi Steel continues to thrive in sub–Saharan Africa and can call on more than 35 years’ experience to steer it through times of challenge. Customer service is at the core of enhancing product performance and improving efficiencies to create better, more sustainable solutions.

“Through thick and thin, BSi Steel will always be by your side,” the company affirms. www.enterprise-africa.net / 115

INDUSTRY FOCUS: MANUFACTURING

//

South Africa is one of the largest steel producers on the African continent and its steel-consuming industries contribute some R600 billion to the country’s GDP. No sector has escaped the challenges of recent times but, in spite of everything, the steel industry remains strong and resilient and a major source of employment.

A litany of factors, including the availability of cheaper imports, challenging trading conditions, high tariffs and lack of infrastructural developments have entailed reduced production. South Africa now looks to further revive the industry, restore and even perhaps eclipse its former glory with the signing and implementation of a comprehensive new master plan.

INDUSTRY MASTER PLAN Announced by the Department of Trade, Industry and Competition in June and the product of regulators, industry and labour, the initiative covers the steel and metal fabrication sector and will reinvigorate the local steel industry, providing a massive boost to output by expanding production.

It would be hard to imagine a more wholesale transformation from the South African Journal of Industrial Engineering’s ominous forecast in 2017, which went as far as to moot the possible extinction of the entire, historically critical, iron and steel industry. Then finding itself in a truly embattled state and facing evermounting pressure with fewer local infrastructure projects, high input costs

// THE BSI STEEL GROUP CONTINUES TO EXPAND AND THRIVE IN AFRICA, SUPPORTED AND DRIVEN BY AN EMPOWERED WORKFORCE //

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and global price competition, this plan looks firmly towards a lucrative and far more optimistic future.

“The signing of the Master Plan sets the foundation and commitment for the development and growth of this important sector,” the ministry said in a statement, of the plan composed in consultation with government and all stakeholders in the industry. Its principal aims include addressing demand and supply, the African Continental Free Trade Area Agreement (AfCFTA) and a steel fund to support industry projects.

Its formulation and implementation has been roundly welcomed by companies in the sector, recognising the potential it possesses to improve the long-term sustainability of an industry which employs around 200,000 workers.

“The decline in both domestic production and demand has presented a challenge to an industry which is largely in survival mode, meaning that cost-cutting - rather than investment in new technology, new plants and

INDUSTRY FOCUS: MANUFACTURING

improved processes - is dominating the thinking of much of the industry,” the document detailed.

“The metals and engineering sector is a strategic industry for South Africa,” affirmed Steel and Engineering Industries Federation of Southern Africa president Elias Monage. “The National Development Plan is largely dependent on steel and South Africa needs steel – thus the viability and competitiveness of the sector is in all our interests.”

Some of the growth-stimulating measures which the document describes include export promotion into the African continent, which represents a significant opportunity for South African steelmakers and downstream processors. African countries purchase nearly R400 billion of iron and steel each year, and the plan will focus on opening

these markets for local entities and promotion of partnerships.

Local procurement is also seen as one of the key growth drivers, with state-owned entities such as Transnet committing to review their procurement requirements and to help improve local supply chains for large-scale projects and consumables.

STEELED AND READY BSi Steel will be one of the most important players in the southern African steel revival. South Africa’s leading steel merchant and steel supplier, BSi Steel covers the full range of mild steel forms through a primary product range spanning steel pipe, square, round and rectangular tubing, round and square bar and every conceivable iteration of pipe and coil, cold rolled coil.

// WE STAND TO REMAIN THE PREMIUM STEEL SUPPLIER IN SOUTH AFRICA, AND WILL ENSURE THAT WE REMAIN THE COUNTRY’S TOP STEEL MERCHANT //

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Times like these are when we look to our most established leaders and this experienced industry expert has all the knowledge and capability to ride out challenges in the sector, all while ensuring clients have access to the products at the heart of their operations.

“We are a high energy, high performance company that doesn’t settle for anything less than excellence,” BSi Steel proclaims. “We keep a firm focus on our objectives and challenge ourselves to make sure we’re always on track. When results aren’t achieved as expected, we take swift action to correct performance and enable future delivery.

“We stand to remain the premium steel supplier in South Africa, and will ensure that we remain the country’s top steel merchant.”

This South African great was conceived in 1985 when William Battershill established Discount Steel, entering new markets, building relationships with new steel suppliers all the time and, as a result, growing substantially. By 1995, the company acted upon the pressing need to enter Gauteng, and so become more involved

BSI STEEL

in the larger construction projects in the country’s most densely packed region.

Garrison Steel was founded and in 2001, following another strong period of growth, the group was renamed BSi Steel coupled with the purchase of a new warehouse the following year, leaving the company owning two facilities and offering strong processing and distribution capabilities.

In 2007, William Battershill and the management team listed BSi Steel on the AltX exchange in Johannesburg, raising R100m in funding which helped to fuel expansion in the form firstly of a new site in Klipriver, and then construction of a new 36,000 m2 warehouse and office building. The group’s processing division, Shearcut was established and further processing lines were installed which in turn bred the confidence to continue to push for national and international expansion. Between 2009 and 2014 BSi opened new branches in Ghana and Mozambique, adding to the African presence in Zambia, the DRC and Zimbabwe.

This will not be the first time that BSi Steel has been front and centre of a monumental initiative in the country, proving itself integral to and reaping the rewards of the

infrastructure boom catalysed by the 2010 World Cup. Knowing exactly when in its history to switch its focus to efficiency, wrap up inefficient operations and restructure, BSi Steel has ensured its long-term viability and stands strongly positioned to ensure low-cost, but large-scale, steel distribution all across southern Africa.

“BSi is in a very strong position today with some exciting growth prospects for the years ahead,” says BSi Steel of the green shoots it is eagerly grasping. “By working in partnership with you, we are able to help enhance your product performance, improve

your efficiency and help you to create more sustainable solutions.

“The BSi Steel Group continues to expand and thrive in Africa, supported and driven by an empowered workforce that takes pride in exceeding customer expectations. At BSi Steel, everything we do is driven by our desire to build partnerships that stand the test of time.”

WWW.BSISTEEL.CO.ZA

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SA METAL GROUP

Extracting Every Scrap

of Value from Waste Metal PRODUCTION: Benjamin Southwold

As metal recycling rates continue to grow steadily in South Africa, SA Metal Group shines as the country’s oldest and largest recycler of the element. Established in 1919 and now with a national footprint, for the last century the group has given new life to all forms of ferrous and non-ferrous metals from scrap yards in Cape Town, Johannesburg and Pretoria, under the direction of the Barnett family throughout.

//

The annual collection and recycling rates of metals continue to grow in South Africa. A report released by BMI Research revealed that almost 76% of all metal packaging in South Africa is recovered, positioning it as one of the global leaders in post-consumer metal packaging recovery and recycling, a status which industry leaders and experts predict will only improve further.

In comparison, 40.6% of glass and 30% of plastic packaging used in the country is recycled. South Africa generates roughly 108 million tons

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of waste annually, 90% of which still goes to the country’s landfills; these are expected to be filled completely in a matter of years and, in the case of many townships, new permits for landfills have not been granted in more than two decades.

This all combines to make South Africa’s metal packaging recycling superiority all the more critical in its lofty green aims, with food tins, tin foil packaging and aluminium beverage cans among the most common items sent for recycling and the majority of the resulting material sold locally.

100 YEAR TRACK RECORD Leading these heroic countrywide efforts is SA Metal, South Africa’s longest standing and biggest metal recycling outfit. Founded by current owner Clifford Barnett’s grandfather, Wolfe Barnett, back in 1919, the group recently chalked up 100 years of purchasing, collecting, processing and then recycling all forms of ferrous metals, like iron and steel, and non-ferrous metals such as aluminium, copper, zinc, stainless steel, lead, nickel, brass, tin and bronze, among others.

“The story began when Wolfe Barnett first began collecting scrap

INDUSTRY FOCUS: WASTE

metal for export to markets in industrialised countries,” explains Clifford Barnett. “In the century which has followed, the group has grown to become one of Southern Africa’s largest and most sophisticated metal recycling operations. We have a reputation for absolute integrity in all our dealings built up over the last hundred years.

“SA Metal is a proudly South African company,” he affirms, “and has a long tradition of trading in most Southern African countries including Namibia, Botswana, Swaziland, Mozambique, Lesotho, Malawi, Zambia and Zimbabwe.” Fully equipped

// IN ALL OUR DEALINGS WE STRIVE FOR THE HIGHEST STANDARDS OF SERVICE, INTEGRITY, COST-EFFECTIVENESS AND CONCERN FOR THE ENVIRONMENT //

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to deal with any and all ensuing environmental hazards, including radioactive material and asbestos, from conveniently-located scrap yards in and around Cape Town, Johannesburg and Pretoria SA Metal purchases scrap from a range of Southern African sources including industrial enterprises, public entities, scrap metal dealers and private individuals.

The group also acquires its scrap metal from off-site demolition projects, where it is able to provide expert demolition services to mines and factories. “We acquire our metal from a litany of sources,” Barnett adds, “anything from casual collectors picking up tin cans from the side of the road to jumbo jets, submarines, frigates and industrial scrap.”

SA Metal Group is now into its fourth generation of excellence, an astounding feat for any South African business which has been made possible due to the application of an extremely alluring model - turning one person’s trash into many others’ treasure. The first iteration of what would grow into this recycling royalty was Wolfe Barnett’s SA Metal and Machinery Company,

in Woodstock, Cape Town, following the family’s emigration from London.

Originally, its primary concerns were in buying old machines to break up, ready to resell their spares for repairs and parts.

The end of the war brought a much wider availability of machine parts, driving the company hard into the scrap metal space. The second generation took charge in 1946 with Aubrey Barnett, and, by the 1970s, the company had established itself firmly within the industry while adding new avenues for growth such as waste control, in essence the removal of rubble from home construction sites.

In 1980, Graham Barnett made SA Metal a third-generation business at the turn of what turned out to be a major decade for the company, seeing the business open a new main site in Epping Industria with stands now as the largest scrap metal processing plant following concerted investment and land acquisition. Just before the advent of the new millennium this was joined by a site in Johannesburg and the opening of SA Steelworks, in Cape Town, in 1999.

SA METAL GROUP

CENTRAL TO SA SUSTAINABILITY Rebranding in 2000 to SA Metal Group and now trading in all of South Africa’s major centres, new sites continued to follow and investment into new equipment did not let up. In 2012 the fourth, and current, generation joined the business with the arrival of Daniel and Rafael Barnett, and served to crown SA Metal as one of the oldest continuously family-run operations in the country.

Now much more than a collector of solely scrap metal, it is an integrated material processing business involved in the manufacture of crucial construction materials. Steel billets and rebar, copper busbars and brass bars, steel plates, roof sheeting and a host of other wares can be produced in a streamlined and economical manner thanks to the company’s range of specialist machinery.

SA Metal has been endeavouring to make the county greener for more than a century, and in so doing is reusing and uplifting materials that would otherwise be heading for South Africa’s already clogged landfill. “We are fully committed to preserving the fragile environment in which we live,” the group asserts, “and to dealing with all materials in an environmentally responsible manner.

We pride ourselves on our impeccable health and safety record throughout the group.”

In Africa, scrap is big business, and the growing global focus on recycling and reusing looks set only to grow keener. Growing metal recycling rates are all the more impressive given the contraction in the volume of metal packaging being produced, although industry leaders nonetheless expect the

// SA METAL GROUP STRIVES TO PROVIDE THE BEST MARKETS TO OUR SUPPLIERS OF SCRAP METALS //

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sector to grow again as more pressure is placed on the plastic packaging industry and the government to curb plastic waste in the environment.

Society is becoming increasingly eco-conscious and more aware of non-degradable waste, and the changing attitudes of consumers are demonstrably affecting the development of new packaging solutions. In a world of some nine billion consumers buying and using manufactured goods, we can no longer follow the model of resources being extracted at ever-increasing rates without consideration for the environment; but instead utilising the metals already in circulation, the metal packaging industry will become more sustainable.

“SA Metal Group is a world leader in scrap metal processing,” the company

states. “As part of our commitment to efficient scrap processing, we are constantly investing in improvements to our facilities in order to increase our capability and efficiency, while reducing our environmental footprint.

“In all our dealings we strive for the highest standards of service, integrity, cost-effectiveness and concern for the environment in order to build lifelong relationships with our suppliers and our customers, while providing the best markets to our suppliers of scrap metals.”

WWW.SAMETAL.CO.ZA

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TARSUS

Your Partner in Digital

Transformation PRODUCTION: Karl Pietersen

Tarsus Technology Group is the ideal partner for organisations on a digital transformation journey. With hardware, software, and cloud solutions to suit SMMEs and big corporates, this is a business that can assist in the new normal. “I truly believe we can make a profound difference in people’s lives with the technology that is available,” says Group CEO, Anton Herbst.

//

In May 2019, former Tarsus Technology Group CEO, Miles Crisp, told Enterprise Africa that the group was an expert in delivering much-needed services for its diverse customer base, and was experiencing interesting growth in cloud applications. Recognised as one of southern Africa’s leading IT hardware and software distribution organisations, delivering cloud, security, professional services and related technologies, Tarsus was growing nicely.

After years with the group, Crisp retired and Anton Herbst took the reins at the Gauteng-based business, made up of Tarsus Distribution and Tarsus on Demand, in March 2021.

Between May 19 and March 21, the world had been flipped, and very few places of work remained the same. A new normal had been fashioned as a result of the Covid-19 pandemic, and technology – Tarsus’ focus area – as thrust into

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the spotlight as a solution to the worldwide work from home problem.

For many distributors, orders soared as laptops, webcams, headsets, and all the related softwares were heavily purchased by businesses sending employees to work from home.

Secure storage in the cloud, the ability to connect with remote terminals safely, and the nature of constant openness of networks – alongside the requirement for sufficiently powerful and user-friendly hardware – made for an attractive market for Tarsus and its clients.

Amidst the seemingly endless uncertainty - something which Herbst thrives on – Tarsus has been successful.

According to Dell Technologies, 79% of South African organisations have fasttracked digital transformation. With these initiatives now beginning to take shape, Tarsus is constantly innovating and collaborating to ensure it stays are the forefront of digital transformation and change.

ASSISTING SMMES In November, the company partnered with SAtion, a community involved in the upskilling and accelerating of digitisation and the Fourth Industrial Revolution, to bring new skills and knowledge to the country’s SMMEs. Initially established in June 2021, SAtion brings together different spheres of the business world, with Tarsus bringing expertise as well as potential beneficiaries.

“With digital technology reshaping the global economy, big business and industrialisation will not, on their own, be able to deliver all the jobs and growth we need to put our country on a sustainable path,” said Herbst, commenting in his position as CEO of Tarsus on Demand, and as Group CEO. “Harnessing digital technologies and SMMEs is the key to creating tomorrow’s globally competitive, inclusive and shared economy.

“This isn’t a challenge any organisation or sector can address

INDUSTRY FOCUS: TECHNOLOGY

on its own – which is why we’re pleased to join hands with SAtion and work with its partners from the public and private sectors to drive digital progress among the country’s SMMEs. This partnership connects with one of our key purposes – working with industry partners to help SMMEs scale and succeed through digital technology.”

Gary Pickford, CEO of Tarsus Distribution shared Herbst’s sentiment saying: “SMMEs today need access to digital technology if they are to be efficient and competitive in a changing world. We are excited about the opportunity to connect SMMEs with our reseller community, giving them access to partners who understand their business needs and can guide them on the long-term digital transformation journey.”

For Dimakatso Matshoga, Chief Operations Officer of the SAtion ecosystem, having Tarsus involved will undoubtedly help micro, small and medium sized enterprises looking to embrace change and adopt digital strategies.

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// WHAT WE CAN DO IN INDUSTRIAL ORGANISATIONS, IS LOOK AT HOW WE BRING TECHNOLOGY TO BEAR, AND UNLOCK THE POTENTIAL THAT IS SITTING IN THE PEOPLE TO ENSURE THEY ARE PART OF THE TRANSFORMATIONAL JOURNEY // “To thrive in the post-pandemic recovery period and beyond, SMMEs will need to optimise costs, drive innovation, strategically collaborate for success, and enhance productivity,” she says. “We are looking forward to working with Tarsus On Demand and Tarsus Distribution in helping SMMEs to harness 4IR technologies such as AI and the cloud to become more resilient, adaptable and competitive. And all this in order for these SMMEs to create further innovative enterprises and thus advance sustainable employment.”

RETHINKING THE FUTURE Anton Herbst is very keen to utilise the power of digital to enhance not

only business success, but people in general. While there is a narrative around replacing people with technology, and using digital tools to dehumanise work, Herbst is keen to discover how the digitisation can change workplaces but not to the detriment of people.

“We have to realise that pre-Covid, we were busy with the transformation from an industrial economy to a digital economy. In the pandemic, that came up front and centre, and we experienced the digital economy because we had to,” he said in the Tarsus Engaged Series about making choices for the future. “There is always a big transition because digital

TARSUS

// WE HAVE TO REALISE THAT PRECOVID, WE WERE BUSY WITH THE TRANSFORMATION FROM AN INDUSTRIAL ECONOMY TO A DIGITAL ECONOMY //

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transformation in a digital economy doesn’t mean that you have to build a digital business, it means you have to ensure your business gets longevity by applying digital technology to extend and scale an organisation.

“The other challenge we have is a new digital business model. It works differently, and we need to understand that people are in the middle, on a journey between the two. That creates uncertainty. On one hand, we have exponential growth and people see the valuations of digital businesses and the impact they have, and then you look at industrial businesses which are being automated. It is becoming almost a dystopian discussion, asking what more are we going to do, instead of changing the conversation to talk about how we can be humane. Digital technology gives us the ability to make the lives of people in the industrial world much better.”

Currently, Tarsus Distribution makes the world’s leading IT hardware brands available to the Southern African reseller channel. The likes of Acer, ASUS, Dell, HP, Kaspersky, McAfee, Lenovo, Netgear, Microsoft, Samsung, Targus and more are all moved through Tarsus Distribution. Tarsus on Demand is the cloud division of the group, focussed on bringing change and innovation to the ICT industry through provision of leading and advanced cloud solutions.

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For clients, this combination is Tarsus describes itself as a digital vitally important as a shift in the world and collaborative business that of work and the societies in which we delights customers. For Anton Herbst, currently understand continues at pace. after an unusual year for all businesses, “If you only talk about automation, the group is now one that can serve productivity and all those good things, more than just its own customers, and then we are only talking about how its involvement with SAtion is proof we scale efficiency more. What we that Tarsus is all about people. can do in industrial organisations, is “I truly believe we can make a look at how we bring technology to profound difference in people’s lives bear, and unlock the potential that is with the technology that is available. sitting in the people to ensure they are But let’s not just do it for technology’s part of the transformational journey,” sake, let’s do it for bettering people’s detailed Herbst. “This is a challenge at lives and improving lives across the country level. We have a large industrial spectrum,” he said. economy, and a digital economy that is nascent, and for us to be relevant on the world stage, we have to make this WWW.TARSUS.CO.ZA transformation. We know the industrial

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10:38

JD GROUP

A Comfortable Lifestyle

Is More Accessible Than Ever PRODUCTION: Timothy Reeder

A diverse consumer base and its status as an economic leader on the continent keeps South Africa’s retail sector particularly competitive. JD Group has grown into a bastion of value for mass-market customers in Southern Africa and now takes on the e-commerce landscape, with results remaining remarkably strong across the board. www.enterprise-africa.net / 129

INDUSTRY FOCUS: RETAIL

//

For decades, savvy South African consumers have been availing of JD Group’s extensive range of trusted brands and companies, as well as its innovative financial services, to bring home the comfortable lifestyle it strives to make attainable for more people than ever before. “We provide value,” outlines JD Group of its overarching mission, “and enable South African consumers to live the way they deserve.”

Furniture and technology dominate the roster, and all showcase

a rich heritage of improving the quality of life of African consumers daily. The combination of Russells, with its unambiguous tagline that ‘you pay less for more,’ and Bradlows gives the two domestic doyens a combined reputation of over two centuries in providing tailored solutions to many generations of loyal South Africans.

Rochester takes the bespoke ethos to the next level, operating from 32 world-class retail outlets throughout the Gauteng,

// IT IS IMPORTANT FOR US TO CONTINUE PROVIDING AFFORDABLE PRODUCTS AND SERVICES TO OUR CUSTOMERS //

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Mpumalanga, North-West, Kwa-Zulu Natal and Polokwane regions. “We have searched far and wide to curate the most expertly crafted collections of stylish furniture and décor items for every room in your home.

Whether you are looking for ultramodern design, or something more traditional – Rochester has something to suit your needs,” it states.

Continuing the commitment to comfort from day to night, Sleepmasters understands the significant investment that buying a bed represents into health and wellbeing, and promises the right solution for all needs. Competitive prices allow consumers to rest even easier in one of its luxurious choices, from leading brands such as Sealy,

JD GROUP

Restonic, Serta and Cozy Nights.

“It’s all about choice,” Sleepmasters underlines, “and we’ve got something for everyone.”

TECH COMPLETES LINE-UP With a commanding homeware and furniture presence, arguably most synonymous with the JD Group name, among such an impressive collective, is its duo of electronic retailers. “If you’re looking for the widest range of leading national and international brands, Incredible Connection is the place to go,” states its first, the retailer of choice for integrated technology products, services and solutions boasting widest range of leading national and international brands available in 75 outposts nationwide.

Why shop anywhere else? This challenge could be applied to any of the brands under JD Group’s umbrella, but is reserved in particular for HiFi Corp, its discount retailer monolith serving electronic goods and appliances to Southern Africa’s burgeoning mass middle market with additional operations in Botswana, Namibia, Zambia and Swaziland.

“We truly understand our customers’ needs and our products, and offer value for money and affordable payment options,” the company says after nearly three decades at the forefront of giving shoppers value for money. “As the Low Price champion, HIFI Corp has strategically positioned itself to save the consumer money.”

The renowned everyday deal destination used its birthday last year as the perfect excuse to unveil a dazzling new-look site in Clearwater Mall, on the West Rand.

Its exclusive retail partnership with Incredible Connection also paved the way for the long-awaited return of Sony Bravia televisions to South Africa, slotting into a product range spanning product computing, home and kitchen, gaming and, of course, TV and audio.

Updated category navigation gives visitors to the store a streamlined shopping experience with multiple ways to pay that include 3D Secure, EFT Pro, Mobicred, or PayU payment options as well

// IMMENSE KNOW-HOW, E-COMMERCE AND LOGISTICS CAPABILITIES AND INFRASTRUCTURE PROVIDE WORLD-CLASS ONLINE SHOPPING EXPERIENCES //

as Masterpass contactless payment for hygienic and safe transactions.

Alongside over R200,000 in prizes to be won and amazing deals in celebration of this occasion, the perfect way to cap off the event was a massive opening sale, “proving that HiFi Corp continues to be at the forefront of delivering a safe and convenient shopping experience while fighting to keep prices as low as possible.”

EVERYSHOP SUPERSTORE Previously, HiFi Corp’s celebrated online retail portal, an extension of its website to a fully-integrated, usable e-commerce system resulting from its partnership with iGroup, was dominating the headlines. Perhaps it is only fitting for a company at the forefront of technology to lead

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INDUSTRY FOCUS: RETAIL

the way in e-commerce, and this year JD Group heralded the muchanticipated arrival of its Everyshop platform, South Africa’s latest and most exciting e-commerce service.

“The future of e-commerce has arrived,” pronounced the group at the launch of its unique and tailored departmental shopping experience, which is intent on being a true disruptor in this competitive landscape. The Covid-19 pandemic caused historic shopping habits to be broken and resulted in a worldwide e-commerce reset and acceleration of future adoption. Many shoppers were forced to experiment with online shopping for the first time, and JD Group has astutely seized the opportunities afforded by the explosion of smartphone penetration and the ensuing significant online growth opportunities.

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CEO Peter Griffiths set out the expertise behind Everyshop and its perfectly curated assortment of products. “Immense know-how, e-commerce and logistics capabilities and infrastructure have been built up

to provide world-class online shopping experiences with swift and efficient delivery options,” he said. “With the support of our existing retail businesses, we have partnered with some of South Africa’s most well-known and

JD GROUP

// WE PROVIDE VALUE AND ENABLE SOUTH AFRICAN CONSUMERS TO LIVE THE WAY THEY DESERVE // loved brands across several industries, including specialist electronics and appliances, furniture, fashion, footwear and DIY to deliver true value to the South African shopper.

“We are proud to be part of Pepkor Holdings with its many trusted brands and combined, we are a diversified retailer of clothing, footwear, furniture, household appliances and consumer electronic goods. Now, even more is offered with Everyshop – our brand new online platform.”

Pepkor Group stands as strong as ever in its history, reporting in May a headline earnings increase of 50% backed by a growing customer base. Financial highlights included revenue of R36.5 billion for the six months ending 31 March 2021, an 18.5% growth in operating profit to R4.6 billion and significant market share gains across most merchandise categories. JD Group includes some of Pepkor’s oldest brands, Bradlows and Russells, and itself toasted substantial success. Sales were up 16.4% for the period, buoyed by the consumer trend around working or studying from home, bringing high demand for technology upgrades, furniture and appliances. Operating profit for the segment increased by 15.4% to R209 million.

“We are extremely satisfied with the very strong performance

from all businesses across the group especially considering the economic context South African consumers face,” Pepkor CEO, Leon Lourens, announced. “It is important for us to continue providing affordable products and services to our customers and operate at the lowest cost of doing business so that we make our customers’ lives easier.

“In many instances, our businesses are the only option for consumers and we take our role in their lives very seriously. The value we provide our customers is rooted in operating a sustainable business underpinned by good corporate governance while taking care of our employees and looking after the communities.”

WWW.JDGROUP.CO.ZA

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EDDELS SHOES & CELROSE CLOTHING

A Cut Above in SA Fashion PRODUCTION: William Denstone

South Africa is well-placed to become a major supplier of clothing, textiles, footwear and leather to the continent, and there is abundant potential in the industry to rebuild after the decline caused primarily by pandemic pressures. Eddels Shoes and Celrose Clothing are two of the country’s most historic and foremost fashion outfits, with a sharp focus on consumer trends and innovation backed by a major emphasis on the importance of local manufacturing.

//

There is real, and realistic, hope that the South African fashion industry could bounce back resiliently from the challenges it has been posed by Covid-19. Heavily burdened consumers have meant that South Africa’s clothing industry has not escaped the impact of the pandemic, with retail sales in the SA clothing and textile industry reaching the worst decline ever recorded in 2020, falling 6.9% overall. This is, according to StatsSA, also the sole year of contraction, barring a decline in sales of 3.2% in 2009 at the height of the global financial crisis.

The local clothing, textile, footwear and leather (CTFL) value chain saw markedly constrained demand for retail goods, exacerbated sector-wide by several plant closures and associated job losses in the past year, which in

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turn reduced local capacity to produce.

Retailers continued to face a range of operational challenges, such as supply chain disruptions causing delays and further losses due to shipping challenges, port congestion and rising logistical costs. This impacted local suppliers as contracting order books placed significant strain on many businesses in the supply chain.

LOCAL IS LEKKER Heeding the lessons learned and shifting to fully support the local market, while avoiding the readopting of pre-pandemic practices, will be the key to patching up this partially tattered sector, opines Maryne Steenekamp, Head of Stadio School of Fashion (SOF). “The local fashion industry has indeed taken a knock,

however, we can emerge stronger if we continue to embrace the ‘local is lekker’ ideology, especially when it comes to our supply chain, alongside consideration for the environment,” she advises.

“Since the start of the pandemic it’s been difficult to import clothing and textiles from Asia, which means that we should use this as an opportunity to focus on our local industry and keep it alive. We can support local designers by seeking out ‘Made in South Africa’ garments and fabrics. As designers and producers of garments, we need to realise that the more we contribute to our local supply chains the more cost effective it will become compared to imports from China. This means that we can safeguard our local economy and become more competitive.”

INDUSTRY FOCUS: TEXTILES

This is also where the Retail Clothing, Textile, Footwear and Leather Master Plan, signed by government and local retailers in 2019, comes in.

Implemented in earnest in 2020, it aims to increase the proportion of locally manufactured products sold in-store from 44% (in 2018) to 65% by 2030, while simultaneously creating jobs. Thandi Phele, acting deputy director-general of the division for industrial competitiveness and growth of the Department of Trade, Industry and Competition (DTIC), clarified that manufacturers have committed to ramp up productivity and invest in production.

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“Even though the industry was under pressure, clothing imports took a bigger hit than locally manufactured clothing as retailers are buying goods more locally and local manufacturers are benefiting from this. Government has also committed to creating an enabling environment for investment in the South African clothing, textile, footwear and leather industry, through strategic tariff support, appropriate manufacturing incentives, and clamping down on illegal imports,” he thoroughly outlined.

“A masterplan was important because of the history of the sector and over the last few years the sector had suffered because of a decline in

manufacturing. The rationale behind the Masterplan was therefore based on the industry’s major contribution to the SA economy; the fact that South African retailers purchased products worth R70 billion in 2016; and the fact that imports of around 50% typically dominate clothing, textiles, and footwear and leather product purchases.”

This local focus is music to the ears of John Comley, CEO at Eddels Shoes and Celrose Clothing. For many years in the textile sector the overwhelming appeal of homegrown manufacturing has been loudly vaunted, with key figures citing its superior quality and affordability as well as a flexibility otherwise not available, alongside notable job creation.

Historically, the pull of enviable pricing from the East has been too strong for some retailers to resist; the tide now seems to be turning considerably in favour of domestic fashion.

DOMESTIC CHAMPIONS Celrose has been at the forefront of the South African sartorial game for nearly 80 years, offering quality garments at competitive prices since 1946. Based in Tongaat KZN, just 40 minutes north of Durban, the importance of manufacturing locally is stitched directly into the fabric of both Eddels Shoes and Celrose Clothing, according to Comley. “Manufacturing and

EDDELS SHOES/CELROSE CLOTHING

// WE WORK EXTREMELY HARD ON PRODUCT DIVERSITY AND FLEXIBILITY // great manufacturing companies are vitally important for the future of this country,” he enthused previously.

Celrose as we know it today was established in 1975 as the manufacturing arm of the Edcon group, opening its main manufacturing complex to both ramp up capacity and incorporate specialist equipment into a state-of-theart warehouse. In 2006, Edcon divested and Comley was appointed as CEO, with investments in technology, modern processes and new managerial processes helping to turn substantial losses into big profits within the decade.

“We work extremely hard on product diversity and flexibility, to become the

first name in the customer’s mind,” Comley revealed. “Not only will they get top service quickly; they will also get guaranteed quality and after sales service and support.”

Comley was already well-known in industry circles for having revived Eddels, a shoe factory in Kwa-Zulu Natal where Celrose is located, by introducing at his arrival in 2000 innovative workerparticipation and incentive schemes to enhance both productivity and profitability. Situated in Pietermaritzburg, Eddels is a shoe manufacturer that has been providing South African consumers with quality footwear for not far short of 120 years. The company is famous

for kitting out faithful customers in brands such as John Drake, QC, Riccardo, Aeroflex and Freedom, making in excess of 3000 pairs per day.

These two local heroes now look toward a future being brightened by a confluence of factors, all accelerating a shift by South African retailers away from a reliance on Asia and to source products locally. Spiralling shipping costs and Covid 19 supply chain disruptions meet with the significant progress already made in line with the R-CTFL master plan, and Eddels Shoes and Celrose Clothing will be at the forefront of the fightback. “After all,” as Comley put it best, “as a businessman, a captain of industry and as a citizen, you’ve got to determine your own success.”

WWW.EDDELS.CO.ZA

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BIG FIVE DUTY FREE

Blue Skies Ahead

for Big Five Duty Free PRODUCTION: Timothy Reeder

Air travel is of arterial importance to Africa’s unique tourism industry. Passengers passing through some of South Africa’s largest international airports, including O.R. Tambo, Cape Town and King Shaka, can avail of the very best local and international products thanks to Big Five Duty Free and its deep expertise in providing the very best in African airport retail.

//

“As more and more people take to the skies to begin travelling again, we look forward to welcoming you into Africa’s leading duty free stores.” So begins Big Five Duty Free’s heartfelt address to its loyal and longstanding customers, who have had to endure the interminable wait entailed by the pandemic and the resulting halt to travel of most kinds, with air among the worst affected.

It has been a long hard stretch for all concerned, not only those whose travel plans and dreams have been forced to be shelved but for the airport industry as a whole during this lengthy shutdown. Finally, airports are returning to their former glory as air travel surges once again, a welcome development for airports and airlines, travel and tourism.

Although caution remains, and future plans remain unpredictable, there is positivity as people learn to deal with the unexpected.

The relaunch puts Big Five Duty Free firmly back in the spotlight

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and perfectly positioned to offer its unrivalled range of wares - liquor, a wide selection of cosmetics, perfume and skin care, confectionery and tobacco as well as accessories, watches and timeless jewellery among them. It will in turn provide just the opening brands and companies looking to reach a receptive audience have been sorely lacking over the last 18 months and more.

“Big Five offers attractive promotions and comfortable and convenient shopping – making this environment your one stop shop,” the company states. “Well trained staff with extensive product knowledge, who speak a number of languages, are waiting to serve you.”

TRULY TAKING OFF Even back in 2019 airports in Africa were paying much closer attention to travel retail, as they came to the realisation that aviation charges alone could not come close to offsetting rising capital investment costs to fund terminal infrastructure developments.

“Fortunately, we have observed a paradigm shift during the past few years,” ACI Africa Secretary General Ali Tounsi told TRBusiness, “and African airports are become more and more revenue conscious and turning gradually to nonaeronautical revenue streams because of the higher profit margin, greater financial stability and sustainability as well as the capacity to withstand traffic volatility to some extent.

// NEW PASSENGER TERMINAL INFRASTRUCTURE BEING SET UP IN AFRICA RECENTLY ENABLES SIGNIFICANT DUTY FREE AND TRAVEL RETAIL AREAS //

INDUSTRY FOCUS: RETAIL

// AS MORE AND MORE PEOPLE TAKE TO THE SKIES TO BEGIN TRAVELLING AGAIN, WE LOOK FORWARD TO WELCOMING YOU INTO AFRICA’S LEADING DUTY FREE STORES // “It is encouraging to note that new passenger terminal infrastructure being set up in Africa recently enables significant duty free and travel retail areas, thus underlying the growing importance of this revenuegenerating stream in African airport business models.

“Commercial sales can be a stable source of revenue that can help recover operating costs and reduce a

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reliance on aviation taxes for future airport development.”

This focus on travel retail brings enormous befits to the customer, too, affirms the Airports Company of South Africa (ACSA). “The value proposition that duty-free also offers is that certain products and sizes or volumes are different to those sold in premium stores at normal shopping malls,” the organisation explains. “For example, alcohol at a duty-free store would be sold in one-litre bottles, compared to 750ml at a normal premium store.”

In the lucrative South African market, Big Five Duty Free is known as one of the true forefathers, as we learned from one half of the Big Five husband-and-wife management team Chris Harilaou. “The business was originally established by Marina’s father, who started it at grassroots level at a time when duty free simply wasn’t present in South Africa.

“It’s fair to say that he was the

pioneer of the duty free business here, helping to construct its foundations in the country’s airports and setting it up to grow into the industry we have today.

“We see the duty free environment as similar to a fashion brand,” Harilaou expanded, “in that we believe it is essential to keep strong foundations to the brand, but equally important to keep changing and providing something innovative, new and exciting for the consumer.

We have to keep up with the different markets and niche products which are evolving on a yearly basis.”

TAKING BACK TO THE SKIES Pre-pandemic, ACSA recorded 248,519 aircraft landings at its airports during the 2019/20 financial year. This nose-dived to 86,434 during 2020/21, reflecting the massive, albeit somewhat anticipated decline in the number of passengers travelling by plane; those who did were struck by the emptiness

BIG FIVE DUTY FREE

of formerly bustling airports.

Fortunately, this is changing fast, with ACSA recently reporting a renewed surge in air travel, and group CFO Siphamandla Mthethwa reported as proclaiming the worst to be overs following increasing numbers of passengers due to the government’s relaxing of local lockdown regulations. With this finely balanced as new Covid strains are examined, the industry waits with anticipation.

If new issues are managed correctly, the coming months are set to herald a return to well-populated airports. The UK has particularly strong links with SA and is the country’s biggest source of tourism outside Africa - on average more than 400,000 Brits visit each year.

“The growth in passenger numbers will be fuelled by leisure travel, especially between now and January,” stated Mzi Deliwe, deputy CEO of Provantage Media Group (PMG). “More than 300,000 British citizens have booked to come and spend Christmas in South Africa – and that’s only the UK. There will also be more business travel, given that a lot more people are vaccinated and feel safer to travel.” Of course, these plans now seem to be under threat as authorities investigate the B.1.1.529 variant. Thorough and effective planning is vital.

With the coming resurgence in air travel both domestic and international, and bustling airports ready to resume, as long as recent hurdles can be overcome, Big Five Duty Free will employ every ounce of the expertise and dedication

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that Marina Harilaou described. “In order to keep people coming back we offer value for money and are as competitive as possible,” she says, “alongside a range of promotions which are in effect on a continuous basis in the shops. We do extensive marketing and place a real priority on service to our clientele - we have a lot of repeat customers, particularly on the business side, which has seen our strike rate increase in the airport itself year on year.

// THAT’S REALLY BEEN OUR MAIN FOCUS AND DRIVING INFLUENCE: TO PROVIDE AN A-GRADE SHOPPING ENVIRONMENT THAT’S AS COMPETITIVE AS ANY OTHER DUTY FREE OPERATOR WORLDWIDE //

“We have tried to grow a business within the duty free market that’s recognised as a brand across South Africa and sub-Saharan Africa. We welcome our African visitors who in turn spend a lot of money with us, and we strive to look after them, and as a result they recognise the brand.

“They know they will receive genuine products at competitive prices, and with the highest level of customer service. That’s really been our main focus and driving influence: to provide an A-grade shopping environment that’s as competitive as any other duty free operator worldwide.”

WWW.BIGFIVEDUTYFREE.CO.ZA

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GAYDON MOTOR SPARES SA

Full Speed Ahead

for Gaydon Motor Spares PRODUCTION: Benjamin Southwold

Gaydons Motor Spares SA Pty Ltd (GMS) is South Africa’s one-stop shop for quality brands in the automotive industry, offering a formidable array of components from bumper to bumper and undercarriage for all vehicles and light commercial bakkies.

Imthiaz Ahmed Bassa CA (SA), Managing Director says: “GMS is a key player in the motor industry.” The company continues to promote quality local and international brands at competitive prices and excels in the fine art of franchising.

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INDUSTRY FOCUS: AUTOMOTIVE

//

Since 1986, GMS has established itself as one of South Africa’s leading independent motor spares distributors. GMS’ primary focus is on ensuring quality and reliability, at the right price, while concentrating on service excellence. This has kept GMS at the top of the motor industry market. The head office in Durban, together with branches in Johannesburg, ensures the company can offer a distribution network spanning all corners of Southern Africa, as well as being the perfect gateway to the rest of the continent.

This influence is not limited to Africa, elaborates Managing Director, Imthiaz Ahmed Bassa. “GMS has also used its vast capabilities as a pioneering trailblazer to take it where very few before have succeeded in this most lucrative industry.

“We are the largest leading independent wholesaler in South Africa,” Bassa relates firstly, “with a

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significant staff complement, which ensures an efficient and hassle-free order and delivery service to other wholesalers, retailers and workshops.

The combined experience of the staff complement exceeds a millennium, which underpins GMS’ strong heritage that it has built up.”

This has been affirmed by the appointment of Bassa as MD; whose roots in the industry go way back to his tender age of nine years when he was already retailing spares over the counter. Bassa has extensive experience in both the automotive industry and FMCG markets. The energy and vision from the modest 47-year-old is motivating, says Rehman Kajee, Head of Marketing and Franchising at GMS. Bassa maintains that success lies in the commitment and dedication of his team to provide an efficient service in a customer centric environment, leading to positive results in a demanding industry.

QUALITY AND PRICING ABOVE ALL “We were inspired to lay foundations with foreign suppliers, way back in the 1980s and we were in fact the first importers in South Africa.” This was a highly informative experience, Kajee says. “This was hugely enlightening, and from it we learned the sheer value of knowing exactly who we were ordering from, and the impact on quality that this can have. The relationships that were established 30 years ago still continue up to today.

“To avoid any potential

// OUR PRIMARY FOCUS IS ON THE VERY ESSENCE OF QUALITY AND RELIABILITY, OFFERED AT THE RIGHT PRICE //

GAYDON MOTOR SPARES SA

compromise on standards we have since established the technical development to source directly from these manufacturers exactly what the industry currently demands, based on the high-quality standards that we demand, rather than what people may decide to provide us with. This is the most important process and is based on our company’s moto ‘Quality starts and stops here’.”

Shifting focus to local operations, Kajee details to us the major change has just taken place in GMS’s South African operations. “We’ve recently moved offices,” he reveals, “from Rosettenville in Johannesburg to Maraisburg. We have been in Rosettenville since our inception, but the environment has changed

quite notably and we were no longer finding it conducive to our own progress and growth. We are now in a prestigious property in Maraisburg – which boasts A-class offices together with an efficient warehouse which reinforces Bassa’s vision of striving to reach new heights.

GMS has set itself a clear primary focus: the very essence of quality and reliability, offered at the right price, and all backed by service excellence.

Kajee boils this down even further, clarifying that there are two factors above all which define the company’s central ethos. “Quality and pricing.

We offer the right product, best in quality, at an affordable price, and this is how we capitalise on our market share.”

// THE NEED FOR LOCALISATION IS AN ESSENTIAL INGREDIENT IN TRANSFORMING THE DOMESTIC AUTOMOTIVE SECTOR //

The company stocks a wide range of local and house brands. Kajee says that due to high volumes of products purchased, the company is able negotiate with suppliers to obtain the most competitive pricing by cutting out the middleman.

Crucially, it also allows GMS to ensure that it always has stock available, either locally produced and, where required, supplemented by approved global suppliers.

“Our competitive advantage in this field is operational excellence – the process where we concentrate on combining our skills and assets into a personalised service, aimed at meeting all our customer’s individual needs. This allows us to deliver the highest levels of service whilst maintaining our cost competitiveness.

BIG INDUSTRY PLANS The South African Automotive Master Plan [SAAM] 2021 – 2035 strives to see the automotive industry growing

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INDUSTRY FOCUS: AUTOMOTIVE

from 600,000 to 1.4 million vehicles a year in production. This alone will drive demand as more vehicles can only equate to a greater need of replacement parts.

Crucially, the localisation which informs the very essence of GMS’s current and future operations has also been pegged as a significant opportunity to transform the automotive sector, while facilitating the entry of BEE participants in its supply chain.

“The need for localisation is an essential ingredient in transforming the domestic automotive sector,” confirmed Simon Woodward, automotive sector head at Rand Merchant Bank (RMB). “It is a massive opportunity to support black-owned automotive suppliers in building their businesses in the industry, and then

potentially partnering with leading global suppliers. It will help drive transformation and create jobs.”

“Without localisation, we’re going to struggle to remain competitive,” added Andrew Kirby, president and CEO at Toyota South Africa Motors Limited.

GMS embodies this perfect balance between prioritising local and offering the best of the rest of the world in its exhaustive range of brands. This GMS brand itself has gone on over the years to successfully capture a large share of the market, offering high standards of quality at affordable prices, Kajee outlines.

“The vast GMS product range includes various cleaning materials and chemicals, under-carriage parts, brake parts, engine overhaul spares, clutch overhaul spares, accessories and lubricants.”

// WE PRIDE OURSELVES ON BEING THE ONLY FRANCHISE WHICH OFFERS STORE-SPECIFIC ADVERTISING //

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DRIVING PROGRESS Next to the Bremskraft premium brake pads and Petromin oil, manufactured in Saudi Arabia, are three more of the leading South African auto products: Slik X Motor Oil, a GMS own brand of engine oil that has taken the industry by storm, HK filters and Spitzen shock absorbers, giving increased braking efficiency and reduced risk of skidding in the wet.

“The Slik X lubricants, house brand was established by late Director Mr Ebrahim Amod Badroodeen 18 years ago when he identified a gap in the market. The brand has grown significantly over the years with the increase in its product range over the automotive and consumable industries under the watchful eye of our MD.” Kajee was also excited to mention the launch of a new product line of additives, engine and fuel cleaning agents and car care products called BOOST, which enhances the performance of motor vehicles,

GAYDON MOTOR SPARES SA

prolongs the life of components and reduces emissions.

In the form of Inkosi Auto Parts, GMS seized upon the opportunities afforded by the art of franchising in order to give the truly personalised, tailored service, and replicate the proven recipe that has brought the franchise model success in local and further afield territories. “We have relaunched the concept after the return of Bassa, who is a keen believer in promoting the Inkosi Auto Parts franchise offering, which was launched 15 years ago and is currently

// GMS IS A FORCE TO BE RECKONED WITH IN THE MOTOR INDUSTRY //

the most affordable franchise on the market,” says Kajee of the self-styled ‘King of Auto Parts’.

“With Inkosi our aim is to offer as much support to all our franchisees as possible and with the backing of GMS it makes it possible to pass on massive savings to our franchisees, helping their businesses to flourish with the lowest possible capital investment. We strive to provide products that combine quality and variety with value pricing, coupled with unmatched service excellence.

“We pride ourselves, too, on being the only franchise which offers store-specific advertising, that speaks directly to the market where that specific store is located. There is no other brand that does this.”

With the GMS name known nationally and the business gaining

recognition from the likes of the Automechanika, South Africa’s leading international trade fair for the automotive service industry, GMS is on the road to an even greater footprint and further dominance within the industry, Kajee feels.

“Simply put, we link strategy, people and process to deliver operational excellence within the wholesale motor industry. With the continued growth in customer demand and the competitive environment becoming ever fiercer, offering great and excellent customer-service is at the heart of all we do, helping us to dominate our competitors well into the future.”

WWW.GAYDONMOTORSPARES.COM

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MOTUS AFTERMARKET PARTS

The Right Reaction Drives Global Growth PRODUCTION: Motus Aftermarket Parts

Like many companies worldwide, Motus Aftermarket Parts found itself negatively impacted by the continuing Covid pandemic, which disrupted trade, led to critical shortages of material and products and suppliers and customers facing uncertain financial futures. However, despite the prevailing gloomy economic environment, the company has grown and prospered by adapting its strategy to the meet market realities. By taking innovative steps within its key market segment, the business has weathered a storm that has had serious consequences for many enterprises operating in the highly competitive automotive sector. Malcolm Perrie, CEO of Motus Aftermarket Parts (MAP) talked to Enterprise Africa about the importance of effective management in tough times.

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INDUSTRY FOCUS: AUTOMOTIVE

//

The sudden emergence of the Covid-19 virus in 2020 and its seemingly unimpeded march across the world brought unprecedented changes to businesses worldwide. Within months, regular trade was being held hostage by the virus. In the face of draconian regulations and government interventions, the availability of raw materials stuttered and then stopped. The multiplier effect soon saw production capacity failing and distribution channels becoming clogged and closing.

Seemingly overnight, businesses around the globe that had relied on international suppliers for raw materials and products found themselves dealing with a reality in which the world’s manufacturing

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powerhouses, including China, were unable to meet their commitments for an extended period.

As pointed out by Malcolm Perrie, CEO of Motus Aftermarket Parts (MAP), the emphasis moved almost immediately from ‘business as usual’ into crisis management mode, the focus from growing business to consolidating it and then adapting strategies to identify potential areas where MAP could still make market gains.

MEETING CHANGED DEMAND FOR PRODUCTS The challenges presented involved developing approaches that would satisfy the needs of a diverse market requiring the original equipment and generic brands distributed by the company.

In addition, MAP had to grapple with issues involving demand for its accessories and tools products for the ‘Do it Yourself’ and ‘Do it for Me’ markets. Both these segments, which rely on the discretionary disposable income available to customers, faced falling demand from buyers forced to conserve their incomes.

The response by MAP, says Perrie, was to examine its business critically. This introspection included examining local operations and the benefits of its looking internationally for growth opportunities, driving volumes through centralised distribution and exploring alternative supply chain options.

In South Africa, coping with the pandemic has realised some hidden benefits. MAP has found that it can

MOTUS AFTERMARKET PARTS

operate remotely with staff operating from home and with only employees working in warehouses and frontline retail positions being needed at their usual places of employment. A rethink about working roles has also sparked investigations into the necessity of retaining some rented office space.

MAP has survived the vagaries of the Covid-impacted market and is now back on solid financial ground. Although lost sales can never be recouped, the emphasis now is on moving forward and identifying new opportunities.

NEW DIRECTIONS Using its other strategic focus points, the company has taken several innovative steps that Perrie is confident will ensure a buoyant future for MAP. Plans include benefitting from economies of scale by driving

volume through a central distribution centre (CDC) in Shanghai, China, and acquiring a UK-based business with exposure to the European market.

Perrie views investment in Shanghai as a logical development and does not share the concerns of some business leaders who are wary of potential future supply chain issues emanating from China.

The MAP Chinese footprint will remain important as there is little doubt that China will strengthen its output of automotive products in the long term. MAP’s faith is reflected by the establishment of its warehouse in Shanghai.

The Motus Trading Shanghai (MTS) facility will be central to MAP’s strategy of increasing volume throughputs and enabling the company to develop markets it can supply elsewhere in

the world. A wholly owned Motus subsidiary, the distribution hub, established in collaboration with a foreign investment company, is located in a free trade zone in the Port of Yangshan.

Although there were some constraints, including funding and borrowing requirements and transfer pricing attached to the MTS deal, ultimately, China and MAP benefitted from relocating the central distribution facility from Johannesburg to Shanghai, says Perrie.

ACQUIRING ‘LIKE-MINDED’ BUSINESSES Supplementing this drive by acquiring qualified businesses with similar product profiles to MAP that will spur volume growth, improve pricing, increase profit margins, and enhance

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INDUSTRY FOCUS: AUTOMOTIVE

competitiveness recently became a reality when MAP made a strategic investment in FAI Automotive.

The UK-based company, which has much in common with MAP, is a brand leader in the automotive parts distribution aftermarket. It has an annual turnover of about £35 million.

It operates primarily in the UK and in established European markets from which it draws about 50% of its

customers. Countries of operation include Poland, the Czech Republic and Russia.

Central to MAP’s acquisition strategy is the belief that businesses should be bought to exploit synergies and add value rather than to be restructured. The factors that MAP examines when assessing a purchase are whether there are opportunities to expand product portfolios, increase supply chain, improve logistics, and where new market opportunities can be found.

FAI illustrates this approach as the entire management team has been retained, and their strategy remains in place. The emphasis, says Perrie, is how both MAP and FAI teams can leverage off the operational strengths of both businesses, including the emerging market expertise of MAP. INDUSTRY ISSUES Turning to broader industry issues, Perrie comments that the immediate aftermath of the pandemic will only be entirely ascertained when the virus is no longer a threat to people and business.

However, several issues impacting business have been identified and still have to be measured and solved. They include a lack of shipping containers to cope with resurging production volumes, containers resting in the wrong ports, and limited shipping lanes out of China that has caused costs to escalate.

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MOTUS AFTERMARKET PARTS

Compounding these problems is Chinese concern about environmental issues that have seen some factories compelled to reduce outputs.

THE FUTURE FOR AFTERMARKET PARTS IN SA In South Africa, the aftermarket parts industry is still dominated by importers. However, with about 12.7 million vehicles in the country, there is still room for agile local players to grow their customer base and contribute to an industry that is crucial to South Africa’s economy.

As long as vehicle numbers in South Africa increase, there will be demand for parts, states Perrie.

As the industry serves both the new and used car sectors, demand remains reasonably steady, making it exempt from the factors that can occur and

result in parts of the automotive market being subjected to cyclical changes.

With the world moving away from fossil fuel-powered vehicles, the MAP product range may ultimately require some adjustment.

However, the days when electric vehicles dominate the roads are still far off and are not of immediate concern to the company, says Perrie.

He points out that with about 700 million traditionally powered engines globally, it will be some time before they vanish entirely.

Adoption of new technologies will be driven mainly by legislators who will ultimately dictate how rapidly the change to electricity occurs.

It is also unavoidable that change in some countries will lag others. New export markets will flourish when petrol and diesel-driven vehicles

become redundant in some countries.

The result will be an explosion of cheap cars being exported to lessdeveloped markets in Asia, Africa, and elsewhere worldwide.

Even though the motor manufacturers project 2030 as the year when internal combustion engines will stop rolling off production lines, seeing traditional cars vanish altogether could take up to 20 years. Eventually, however, concedes Perrie, the time will come when MAP will begin changing its offerings.

When it does happen, he says, the company will be ready.

WWW.MOTUS.CO.ZA

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