Enterprise Africa June 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

June 2021

www.enterprise-africa.net

SA’s First Integrated Mobility Solution From Avis Exclusive interview with Avis South Africa CEO, Ramasela Ganda

ALSO IN THIS ISSUE:

Securitas SA / MRC Group / Sanlam / Lodox Systems

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EDITOR’S LETTER

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EDITOR Joe Forshaw  joe@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks  sam@enterprise-africa.co.za SENIOR PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za PROJECT MANAGER Christina Allcock  christina@enterprise-africa.co.za PROJECT MANAGER Eleanor Sarbutt-King  eleanor@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR

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

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB +44 (0) 1603 855 161

Place yourself in the shoes of Ramasela Ganda. The CEO at Avis in South Africa started in her new role just four days after President Ramaphosa announced a national lockdown.

International tourism was effectively cancelled and people told to stay home. How does a car rental business begin to plan for something like this? She wasn’t even able to set foot in her own office to meet people and begin strategizing the fightback.

But, very quickly, a new leadership team was installed and an emergency contingency plan was put in place. While the competition was reeling, Avis was out there, working with manufacturers, and improving its fleet – spending big. This gamble paid off and the market leader maintained its position, growing share by rolling out an integrated mobility strategy.

For Defy Appliances, the multinational manufacturer of innovative appliances, there was a similar story. Instead of sitting back and waiting for the pandemic to pass, the company was out there investing in facilities and searching for opportunities to make a difference. Defy was involved with the development of a locally-made ventilator that literally helped people to breath if they were admitted to hospital with the coronavirus.

It’s a similar story in Namibia for Old Mutual Investment Group Namibia where CEO Tyrone van Wyk helped push through the launch of various new funds that assist in economic development on the ground – much needed in Namibia.

Look around at businesses that have failed during the tough times that have arisen thanks to the pandemic. Did they do everything possible to survive? Or did they not make the most of the opportunities available? Turning challenges into opportunities is the key to success, now and always.

Let us know how your company is searching out the opportunities that are undoubtedly there. We’re online @LinkedIn.

Joe Forshaw EDITOR

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

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

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12// AVIS SOUTH AFRICA SA’s First Integrated Mobility Solution From Avis After starting in a whirlwind, Ramasela Ganda – CEO at Avis South Africa – has guided the business through a major storm and is now looking forward to future positivity as the company rolls out its new Integrated Mobility strategy.

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CONTENTS

32// 6// 12// 20// 28// 32// 38// 44// 50// 58// 64// 70// 78// 86//

6/ SATRIX Satrix Officially Crowned as Best in Business 12/AVIS SOUTH AFRICA SA’s First Integrated Mobility Solution From Avis 20/OMIGNAM Success in Alternative Markets Yields Growth for OMIGNAM 28/A-SURE CONSULTING A-Plus for New One-Stop Solution 32/SANLAM The Dominant Force in African Insurance 38/LODOX SYSTEMS Diagnosis: Good Growth in 2021 44/GLODINA Glodina ‘Covid Set Back’ but Remains Positive 50/DEFY APPLIANCES Defy Cooks Up New Plan for Sub-Saharan Africa Expansion 58/LEMCO Turnkey Structural Steel Diversification 64/NATIONAL PACKAGING SYSTEMS Signed, Sealed, Delivered 70/BLEND PROPERTY GROUP The Bank to Bring New Life to Rosebank 78/MRC GROUP Building Envelope Installer Posts Strong Growth 86/SECURITAS SA Multifaceted Approach Safeguards Securitas Growth www.enterprise-africa.net / 5

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FOCUS ON: SATRIX

SATRIX OFFICIALLY CROWNED AS

BEST IN BUSINESS WITH 11 SIGNIFICANT INDUSTRY AWARDS WON BY MARCH, 2021 LOOKS LIKE ANOTHER SUCCESSFUL YEAR FOR SATRIX. THIS FOLLOWS A STRONG 2020, DESPITE THE COMPLEXITIES OF THE COVID-19 CLIMATE. CEO, HELENA CONRADIE, IS DELIGHTED AND SAYS THE ACCOLADES ARE TESTAMENT TO HER TEAM’S HARD WORK AND CLIENTS’ CONTINUED FAITH IN SATRIX TO DELIVER ROBUST RETURNS.

Investments, stocks, shares, exchange traded funds (ETFs), linked investment service provider (LISP), indices, index tracking, unit trusts? While many people may perceive these as the bastion of the wealthy, Satrix CEO Helena Conradie and her team are working hard to change this perception.

South Africa’s first ETF business has spent two decades tirelessly focussed on financial inclusion and democratising investing. “Our goal is to bring more and more South Africans into the investment space,” says Conradie.

Satrix is the South African industry provider of indextracking products (collective investment schemes that follow the movement of a market index, such as the FTSE/ JSE Top 40 index). The index tracking business was the first to introduce ETFs to South Africa more than 20 years ago, via the Satrix 40 ETF. Today, Satrix manages assets in excess of R130 billion.

During what has been a challenging time for markets around the world, Satrix has continued to work hard to foster widespread financial democratisation.

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SATRIX CEO, HELENA CONRADIE

As a result, for the fourth consecutive year, the Satrix 40 ETF was named the country’s favourite ETF by public vote at the South African Listed Tracker Funds Awards (SALTA) in March this year. Satrix also collected several other accolades at the SALTAs. Another outstanding accolade in the same month was Satrix being named Best Fund House in the Larger Fund Range in South Africa by Morningstar, a global financial services firm. Satrix was the first South African index investing business to be awarded the honour by the investment research house which has 35 years’ experience.

PEOPLE’S CHOICE “From day one, our purpose has been for all South Africans to ‘own the market’. This is a responsibility we take extremely seriously. Our aim is to bolster the country’s economy by empowering more people to invest with confidence. This makes the SALTA People’s Choice award particularly meaningful. It demonstrates that our deliberate actions to foster inclusivity and provide investment access to all South Africans are having an impact. It is a real

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honour as we know those who voted for us are on their own journeys towards investment success. It’s a privilege to know we’re playing a part,” says Conradie.

She says the awards also indicate the pivotal role index investing now plays in the industry. Satrix’s sustained success shows how vital passive allocation has become in a portfolio. “These awards are in fact a win for the whole index investing industry which is going from strength-tostrength relative to active asset management.”

The Morningstar award was also particularly pleasing for Conradie who has been with the business since the beginning and has seen much change across the industry.

“The award acknowledges the house that has consistently added the most value to investors. At the end of 2020, we were the house with the strongest performing fund line-up, on a risk adjusted basis, over one, three and five years. That doesn’t happen overnight and is confirmation for us as a business that we are on the right track.

“These awards have helped us as a business and driven the brand, enabling us to reach more people who need to be included financially,” she says.

FOCUS ON: SATRIX

MANY MOVING PARTS It should come as no surprise that Satrix managed to achieve such success. The team of people behind the business – which Conradie highlights as the reason for its achievements – has 173 years of combined industry experience and a diverse mix of skills. The ability to manage multiple equally important and challenging business elements is what truly separates the company.

“Over 20 years, we have put many important initiatives in place,” she details. “First mover advantage, strong strategic support from Sanlam, a resilient brand with a purpose, a diverse and skilled team, an ownership culture, the right partners – it’s not just one of those things that sets us apart. The magic happens when these elements work together; that is what makes us different.

“We launched the first ETF in November 2000. At that stage, few people knew about index investing in South Africa, and Sanlam, CorpCap, Gensec and the JSE came together, with Sanlam investing more than R2 billion as seed capital for the Satrix 40 ETF. Their vision was almost prescient. You don’t often see such entrepreneurial flare from large financial services companies.

“I began my career as a quantitative analyst,” adds Conradie, “I was far more involved on the institutional side of the business. It was only when I started working on the direct side that I realised how transformative working with the end investor could be. When you meet an investor and they look you the eye and trust you with their R200, that is when what we do really speaks to you. We are trusted to take someone else’s money and help it grow.

WE LAUNCHED QUITE A FEW GLOBAL FUNDS THAT GIVE ACCESS TO GLOBAL DEVELOPED AND EMERGING MARKETS, AS WELL AS CHINA, THE NASDAQ 100 AND S&P 500, AND WE PLAN TO ADD TO THESE. www.enterprise-africa.net / 9

“In 2006, we launched the Investment Plan. There was a perception that the stock market is only for rich people, but we started letting people invest as little as R300 per month. In 2012, we partnered with Easy Equities, which enabled us to offer no minimum investment amounts, so you can start with R20 or R50. That is true financial inclusion, something which we are very proud of.”

Today, the Satrix 40 ETF is widely viewed as one of the most cost-effective ways of getting exposure to the largest companies on the JSE. Starting with either a lump sum investment or a debit order, clients can quickly and easily access the market. The Satrix DIVI is also easy to understand and tracks the top dividend paying companies on the JSE. The company has a range of offerings for different appetites of both investment and risk.

SATRIX CEO, HELENA CONRADIE

FROM DAY ONE, OUR PURPOSE HAS BEEN FOR ALL SOUTH AFRICANS TO ‘OWN THE MARKET’. THIS IS A RESPONSIBILITY WE TAKE EXTREMELY SERIOUSLY. OUR AIM IS TO BOLSTER THE COUNTRY’S ECONOMY BY EMPOWERING MORE PEOPLE TO INVEST WITH CONFIDENCE.

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FOCUS ON: SATRIX

CONTINUED GROWTH Even with the challenges posed in 2020 by a global pandemic, Satrix enjoyed a brilliant year thanks to its hardworking team and the support of its clients.

“It was a very tough year,” admits Conradie. “I have so much appreciation for the business and the team because everyone put their heads down and pulled together with a real commitment. In the end, it turned out to be our best year ever. These awards are testament to that. It was incredible to see, in terms of fund flows, that people were saving and investing more. Maybe the whole situation taught us that you must provide for emergencies and for times that are not easy.”

Witnessing an increasingly diverse range of investors coming into the market is proof for Conradie that Satrix’s vision is achieving its purpose.

“The JSE has an initiative called SHE Invests. Back when we could gather as a group, we would easily get 600 women coming together over a long weekend to discuss investing and engage with industry experts. There is a hunger from people to know more so that they can become financially free. That need for information is a driver for us to be there on the ground, speaking to people. It’s amazing to see and it energises you,” she says.

The company will look to take this energy forward through 2021 and beyond as expansion continues, with new products being rolled out and new geographies being opened up to investors looking for offshore opportunities.

“We have launched quite a few global funds that give access to developed and emerging global markets, as well as China, the Nasdaq 100 and S&P 500, and we plan to add to that. We currently have eight global ETFs, and we will list more,” says Conradie. “We are busy investigating the global megatrends driving economic growth such as smart cities, infrastructure and healthcare, and we feel there are many opportunities out there. Locally, we will launch an inclusion and diversity product. We are looking at new markets that will help us broaden our client base.”

In 2020 Satrix launched the mobile app version of their online platform, SatrixNOW. As a tool for investors to keep track of portfolios and the various new ETFs on offer, the development of this app shows a desire to change and grow alongside the client. It has all the hallmarks of the Satrix process – easy to use and understand, intuitive, and secure.

With markets still changing and adjusting as the pandemic aftershocks continue to create new challenges, Satrix is looking at what can be done to expose investors to the obvious benefits that exist in the index market space.

For more than 20 years, Satrix has been delivering innovation to clients and now this multi-award-winning organisation is looking ahead at dynamic ways to welcome more people into the world of investing.

VISIT WWW.SATRIX.CO.ZA

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AVIS SOUTH AFRICA

SA’s First Integrated Mobility Solution From Avis PRODUCTION: Karl Pietersen

After starting in a whirlwind, Ramasela Ganda – CEO at Avis South Africa – has guided the business through a major storm and is now looking forward to future positivity as the company rolls out its new Integrated Mobility strategy.

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For almost half a century, Avis has been a leading car rental business in South Africa. The door was opened to the American brand – originally established in Detroit in 1946 – when, in 1972, Federale Volksbeleggings Bpk (a Sanlam subsidiary) partnered with Avis in a joint venture to bring the brand to South Africa.

For most in the industry, the vying starts at the airport. Globally, car rental is an industry popular thanks to its ability to solve a problem for international travellers. South Africa, home to a normally booming tourism market, seems like a great home for

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the typical car rental business. More than 15 million international travellers arrived in South Africa in 2019, the majority of which are part of the car rental target audience.

But what happens when one day the industry hits the brakes? The entire market is forced to close, and the movement of people is forced to stop? It’s the reality thanks to the Covid-19 pandemic.

Surely for those at the helm of car rental businesses, the news that the spread of the virus was out of control, and international travel would cease, must have felt like being hit by the proverbial bus.

WELCOME! But for Ramasela Ganda, CEO at Avis South Africa – the country’s market leader - the timing could not have been worse. After just four days in the job, President Cyril Ramaphosa announced that the country would enter a harsh national lockdown, with all ports of entry closed, and major uncertainty about the length of time restrictions would be in place. Around 60% of the company’s business came from tourism.

Owned by leading industrial company, Barloworld, the Avis Budget Group had to act fast to avoid disaster.

Ganda, an experienced business

INDUSTRY FOCUS: AUTOMOTIVE

leader, was without doubt thrown in at the deep end.

Fortunately, Avis had started planning a reorganisation of its business units, integrating car rental, leasing, and sales under one banner.

The Integrated Mobility Solution – the first of its kind in South Africa - helped the company to adapt quickly to make the most of a challenging situation.

“Within Barloworld, we felt like we were at the epicentre. All the airports were closed and in the month of April, we sold no cars. It has been crazy but also very exciting. I am one of the very few people that says Covid has been horrible but good in a very sad way.

There was a lot I had to do very quickly but it did provide opportunities. It’s about embracing a challenge,” Ganda tells Enterprise Africa.

With uncertainty in tourism came the chance to assist in other sectors. Ganda immediately went about putting the large but dormant Avis fleet to use. Survival became the aim of the game and the vastly experienced Chartered Accountant was quick to ensure cost containment.

Smaller facilities were closed, vehicles were deployed to deliver groceries and other essential items, and on June 1 liquor deliveries pushed the fleet into overdrive.

“We were very excited,” smiles Ganda, “it gave us hope after trying a lot of different things but we knew we still had a long way to go.”

// IN SEPTEMBER, WHEN WE WERE SPENDING R2 BILLION BUYING FLEET, OTHERS WERE IN A DEEP COVID MINDSET; YET TO ADJUST // 14 / www.enterprise-africa.net

CHANGING LANES The decision-making speed, and the ability to turn plans into actions without delay saw Avis quickly take up its regular place in pole position amongst competitors. Agility and a nimble attitude is something rarely found in big business. But in this new normal there has been very little time to waste.

“As Avis, we reacted really fast. Most people were trying to figure out what was going to happen and whether it would last some time or would be a temporary thing. By the time most of them realised there was a new normal, we were very much ahead,” says Ganda.

“Many are now realising and trying to reposition but it has become difficult.

It is do or die, and most are only now looking to act.

“There are a number of things that we have done to reposition – de-fleeting at the right time and the right price, and then reinvesting back into the fleet. In September, when we were spending R2 billion buying fleet, others were in a deep Covid mindset; yet to adjust. The market was slow, so we were able to get the new cars from the manufacturers in large numbers.

People then started to look at buying and the manufacturers could not fulfil, leaving them stuck with older vehicles.

That puts us in a very good position. The agility that we have really helped us to keep going during the tough times,” she explains.

As the cornerstone of the Southern African operation, Avis South Africa had to take quick decisions on behalf of its regional subsidiaries in markets across sub-Saharan Africa. But with each national government taking a different approach to restrictions, this was an extraordinarily difficult job. From Namibia, Botswana and Mozambique, up through Zambia to Ghana, all markets remain operational for Avis.

“We are a Southern African based company, so we do have a good footprint across the south of Africa. The restrictions were different across each country for both local and international

// VEHICLE MANUFACTURERS HAVE BEEN STRUGGLING TO MEET DEMAND BECAUSE THIS IS WHAT THE NEW MARKET WANTS AS A RESULT OF SOCIAL DISTANCING ON PUBLIC TRANSPORT // travellers so for each country we had to deal differently. Some had harsh and extensive lockdowns, some had fewer restrictions but still focussed on travel. International travel was the main thing we had to manage, and we had to introduce a local business strategy for each market. How each country’s government reacted and how we were able to reposition our company was the key consideration. It has been a continuous process of repositioning and understanding the market. Every single day we have our finger on the pulse,” confirms Ganda.

Away from international tourism-focussed car rental, longer term leasing and vehicles used for domestic staycations have also needed innovation from Avis. Changes in consumer behaviour and budget have required the company to optimise its fleet and constantly adapt.

“During Covid we had to change the market mix to serve the market that we are currently in. It included offering up a smaller-sized vehicle portfolio within our fleet because people were doing longer-term rentals and they couldn’t afford larger cars thanks to the uncertainty with jobs. Through the transition, as people became scared to fly and flights were closed, families started travelling long distance in South

Your Fleet Management Solution Mbatha Mlambo trading (MMT) was formed in 2005 and primary focus was on cleaning of cars.

Over the years the direction of the business changed and we identified other opportunities within the value chain. MMT is 100% black owned.

As a company we focus on innovation as well as identifying the most efficient way of delivering services to all our valued customers. We are passionate about local community empowerment hence we offer opportunities to communities where our footprint is present and currently MMT staff compliment is 1050 and counting. We have operations in all nine provinces and harbour the ambition of continental expansion.

Services: • • • • • • • • • •

Fleet management Professional drivers Chauffeur drivers Managing wash bays Workshop Access control Cleaning (car wash) Office cleaning Administrators Quality control and assurance

www.mmtrading.co.za 011 492 2347 41 Shelton Avenue, Harmelia, Germiston 1428

INDUSTRY FOCUS: AUTOMOTIVE

Africa using larger vehicles, specifically SUVs, so we managed to tap that market. SUVs quickly became a strong category for us. We used to offer these vehicles for our international market but we stopped during hard lockdown and we have now started to reacquire SUVs. Vehicle manufacturers have been struggling to meet demand because this is what the new market wants as a result of social distancing on public transport,” explains Ganda.

The SUV market, from a manufacturer point of view, is now seeing continued growth alongside hatchbacks and crossovers, with the traditional strong market segment of sedans facing drastic reduction.

“The beauty of the SUV market is that there have been many manufacturers that have introduced affordable models. We work with all

vehicle manufacturers and we can offer brands for the luxury market and the entry level market,” adds Ganda.

For larger vehicles, those in the truck and van segments, Avis continues to hold a strong lease book with a number of major corporate clients taking up the company’s attractive commercial long-term offering. By bringing the new Integrated Mobility Solution, corporate clients will receive a much more streamlined and value adding service from Avis. Currently, the company boasts 265,000 vehicles under management.

“We integrated this strategy from October 1 and it is still very new.

Because of the lockdown restricting us, it has been slightly slower, but we have seen great progress, especially in heavy commercial. The go to market strategy has been deployed and we’ve seen

// YOU HAVE TO OFFER SERVICE THAT GIVES THE CUSTOMER AN EXPERIENCE SO THEY COME BACK; NOT JUST BECAUSE YOU ARE CHEAP //

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uptake out of it. It’s going very well.

“From an operational point of view, they are now fully integrated and that the only thing left is external branding and the legal entity changes – that comes with a big cost. Now, going to the market, we go out as one,” she adds.

“We see a lot of opportunities in the corporate sector on the leasing side rather than the individual customer side. We believe that the individual customer will still present an opportunity in car rental but for leasing we see the future looking good for companies not having assets stuck in their name and rather leasing them, releasing cash to focus on their core business. That is where we see an opportunity – companies are seeing that they do not need to own cars and there is changing legislation in the country that will also provide good growth for the business,” explains Ganda.

“We want to move South Africans towards understanding the value of use rather than the value of ownership. Get us to provide you with the entire thing

AVIS SOUTH AFRICA

and you don’t have to worry. We now have a product and a service to meet every category but quality is the same throughout. How I greet an Avis client is exactly the same as how I greet a Budget client,” she adds.

EV IN SA Looking further into the future, Ramasela Ganda is very optimistic about the opportunities available for Avis.

Performing strongly during the most challenging times of all helps to position the business strongly for future growth.

In the fleet business, the company will be at the cutting edge of advancements from manufacturers.

As the use of electric vehicles becomes more widespread, Avis will monitor the situation and ensure access is available when the market requires. This obvious, imminent and major shift is more than just new vehicles – it requires infrastructure too.

“It will always be driven by the market requirement, consumer taste, consumer affordability, and market demand,” says Ganda.

“We are very close to our customers, we listen to serve the right market, and we work very closely with vehicle manufacturers to give the particular specification that meets our customer needs. We have spent a lot of time understanding our customer requirements, be it local or international – that is what we do most of the time, understand who our customer is and what their needs are. If we procure without taking their requirements into consideration – what is the financial position, where are they driving, why are they driving – we will not make the right decisions as all requirements are different. Catering for the market through fleet planning is essential.”

In 2020, only 1500 electric cars had been purchased across the entire continent – all in South Africa. Globally, the market is dominated by the EU, China and USA but the pandemic dampened uptake in North America in particular. But in South Africa, there is

// MOST OF OUR CUSTOMERS RENT CARS AND TRAVEL LONG DISTANCES SO WE MUST ENSURE THERE IS CAPACITY TO CHARGE AT RELEVANT POINTS //

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INDUSTRY FOCUS: AUTOMOTIVE

no government incentive backing the purchase of electric models, like in the EU. BMW’s i3 and the Jaguar I-Pace are currently available in SA, but at the top end of the market in terms of pricing – both upwards of R1 million. Ganda is certain South Africa will embrace the electric vehicle industry when the affordability issue is addressed.

“We have already started to see some brands starting to bring models to South Africa. Our local vehicle regulator recently participated in a show where they discussed electric vehicles. The infrastructure is still something to look at as it is essential that people can charge in the right places. Most of our customers rent cars and travel long distances so we must ensure there is capacity to charge at relevant points. That will be a challenge in the beginning. Over the years it has not been a secret that supply of energy in South Africa has been challenged and that will be a factor in this roll out. We have to make sure we can still move, and load shedding does have an impact.

We are positioning ourselves, alongside the OEMs, to make sure when it does come, we can work together to fund the recharge stations in partnership. There are a number of things we are looking at

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to help bring the cars into the market.

“Our market uptake will always be driven by the cost level. The initial cost of electric vehicles is a problem worldwide, but when it becomes more affordable there will definitely be an uptake in South Africa,” she adds.

STRONG STRUCTURE At group level, Barloworld released its annual results in May and group CEO Dominic Sewela reports improvement in continuing operations’ revenue and operating profit by 13% and 44% respectively.

He says that the company’s outlook for 2021 remains positive as key markets recover, commodity prices improve, customers increase capital expenditure, and government stimulus spending supports infrastructure projects.

“We expect Covid-19 related restrictions to continue impacting on our operations in the near term, with sporadic lockdowns expected to be implemented to support efforts to curb the spread of the virus. Sales volumes in the consumer segment are expected to benefit from a reduction in economic restrictions that impacted

AVIS SOUTH AFRICA

AVIS SOUTH AFRICA CEO RAMASELA GANDA

the prior period. The used car market is expected to be strong on the back of the shortage of new cars and anticipated higher prices.”

He adds that they also foresee providing quality services, and not just prices, will continue to be a driving force in the Car Rental and Leasing business.

“While we await the resumption of new normal travel patterns, we will maintain our reduced fixed cost base to ensure an agile organisation in Car Rental and Avis Fleet. Our commitment to our customers will continue while we grow our market share and sustain a lower cost to serve,” says Sewela.

Ganda welcomes support from Barloworld – where she served as an Executive in the Equipment division from 2017 to 2020 – and is confident that the structure will continue to work well in the ever-changing business environment.

“The group structure has worked over the years and continues to work very well,” she says. “Barloworld is a JSE-listed business and so governance becomes very important. As Avis we get very good support from Barloworld and it has been something which has worked very well and we

feel very supported. We have group targets that we work towards. We determine the strategy as a group and there is always alignment.”

As Avis continues to accelerate back up to top gear, ongoing change will be constant and a responsive approach to business will be required. Most of all, a clear and deep understanding of the customer will be vital to ensure the company’s industry leading market share position is not jeopardised.

LEADING THE PACK For Ganda – the first black female CEO within the Barloworld Group - the complicated start to life at Avis will continue. “On my first day, I met my team through Zoom. We had network challenges and no one was on video.

I did the entire structuring of the business on Zoom and I never set foot in the office. I don’t know if you can ever truly get to know a new role like that, but that was my entry – all while making significant changes, integrating businesses, and establishing a leadership team.

“Five of the leadership team in Avis are women. They are very powerful and strong – to survive in this environment,

you have to have significant strength. It’s been a rollercoaster of a period.

“We will learn to live with the virus and I really believe that we will maintain this position. We have moved away from the car rental market where we compete only on price – that is not sustainable and that has been proven internationally. You have to offer service that gives the customer an experience so they come back; not just because you are cheap,” she adds.

Avis is undoubtedly a leader on the road, consistently moving in the fast lane. 5000 locations in 165 countries are proof of trust placed in the brand.

But when times have been tough and economic uncertainty has been the only certainty, Avis has continued to dominate its market. History shows that those leading the industry during the most challenging times are those that thrive when the tide turns.

“International travel will come back.

We have a beautiful country for people to explore,” concludes Ganda.

WWW.AVIS.CO.ZA

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OMIGNAM Success in Alternative Markets Yields Growth for OMIGNAM PRODUCTION: David Napier

By focussing on alternative, unit trust, and money markets - while continuing to roll out an improved digital communication strategy - OMIGNAM has managed to grow its market share and attract new business. For CEO Tyrone van Wyk, unlike most, this is will go down as another good year under the same management team. www.enterprise-africa.net / 21

INDUSTRY FOCUS: FINANCE

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Investment and asset management is an industry full of problem solvers; people who offer up solutions that ensure growth. The sector, globally, is laden with innovation. Convergent thinkers come together to deliver prosperity for clients, safeguarding finances and offering up security and progress on hard-earned savings.

In Africa, the industry is strong.

Even the Covid-19 pandemic was unable to decimate as it did elsewhere in economies. But adjustment has been required. With resources stretched, investors require more guarantees and certainty than ever before. This is where partnering with the biggest and best is a sensible strategy.

In Namibia, the market leading investment and asset management business is Old Mutual Investment Group Namibia (OMIGNAM). A division of the larger Old Mutual group headquartered in Johannesburg, South Africa, OMIGNAM is responsible for delivering sustainable, long-term investment returns to institutional, corporate and retail clients.

The country’s economy is relatively small, dwarfed by its neighbour South Africa. But Namibia is viewed by many as the African success story following independence in 1990 and a subsequent run of strong economic growth lasting more than two decades, a result of political stability and sound economic management. 2016 saw the country fall into recession, and the struggle has been clear ever since – deepened by the pandemic which was a catastrophe for tourism.

For Tyrone van Wyk, OMIGNAM’s Chief Executive Officer and Chief

Investment Officer, the past 18-months have been very unusual but positive.

“As asset managers, all that we need to work together as a group is computers and systems. If you can send people home with access, then life continues. It does introduce a complication around how do you run meetings and interact together. But, because our staff are quite high-level, they are very adaptable, and they have made use of Teams and other programmes to run meetings. Clients have been using various programmes so there has been some technicalities to overcome but internally, we have been successful.”

At the start of 2020, van Wyk told Enterprise Africa that the company had N$40 billion under management – the largest share of the market. Today, that has improved. OMIGNAM commands N$45 billion of a market of around N$181 billion.

The company’s assets include the country’s largest pension funds as well as unit trusts and retail investor capital. By providing consistent returns and, perhaps most important of all, instilling a feeling of trust in clients, OMIGNAM has navigated the pandemic and Namibian economic sloth without a hiccup.

“It has always been the case that certain events or experiences benefit some industries while playing a role negatively in some others,” says van Wyk. “Because our main client base is pension funds, the bulk of the funding is non-discretionary so an individual cannot decide to stop contributing. In Namibia, the bigger businesses with corporate pension

// WE FIND THAT HIGH NET WORTH INDIVIDUALS THAT ARE OLDER IN THIS PART OF THE WORLD STILL WANT TO INTERACT PERSONALLY WITH SOMEONE IF IT CONSTITUTES RATHER LARGER AMOUNTS OF MONEY // 22 / www.enterprise-africa.net

// DURING LAST YEAR, WE MANAGED NET CLIENT CASH FLOW OF AROUND N$2.4 BILLION POSITIVE, SO WE DID ATTRACT INFLOWS DURING THIS STRENUOUS PERIOD // funds have not been exposed to the tourism industry. So, our client base has not been exposed to the sector of the economy that has been impacted the worst. The consequence is that life continued for us.”

In the unit trust market, where savings are more discretionary, individuals have withdrawn money. But this has resulted in an inflow of funds from individuals who were laid off and were able to access some of their savings to place in a discretionary pool to live from. That created a temporary injection of cash into the unit trust market from which OMIGNAM was able to benefit.

“During last year, we managed net client cash flow of around N$2.4 billion positive, so we did attract inflows during this strenuous period.

Granted, a component of that has been from Mauritius. As part of our business, we run two Dollar denominated Money Market funds from Mauritius, where we then place those funds predominantly in the UK market. There have been a number of businesses piling cash during the pandemic and they were not allowed to pay dividends so those funds have been beneficiaries of that activity.

Furthermore, we were successful in the alternative space – investment into the real Namibian Economy. That has continued unabated because it surrounds long term projects where

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INDUSTRY FOCUS: FINANCE

the project feasibility has been completed and has not stopped.

The drawdowns from institutional investors for alternative assets has continued and that has benefitted us. I suspect that helped us to weather the storm quite well.”

At the beginning of the pandemic spread in March 2020, Namibia was placed into a state of emergency and

Tyrone van Wyk

24 / www.enterprise-africa.net

closed all borders while suspending other areas of the economy. Since then, the country’s regions have flitted between various levels of lockdown in an attempt to halt local transmission. In the early stages, the market was impacted. In March 2020, OMIGNAM’s value of total funds under management dropped to N$37 billion before picking up again significantly.

BUILT FOR GROWTH Far from sitting back and waiting for the bumps in the economy to pass, OMIGNAM went out to the market on the front foot and became a growth catalyst in the industry through 2020 and the start of 2021. New funds, new markets, and client diversification have helped the company to maintain and build on its leading position in the Market.

“We try and diversify our client base, especially in the retail space. Because Namibia has such a concentrated market of institutional investors - Government Institutions Pension Fund (GIPF) is 70% of the pension market – and that places obvious risk on the business if it loses those major clients,” admits van Wyk. “Our strategy for quite some time has been to try and boost our presence in the alternative markets. It’s a longterm process in Namibia as you need to apply for licenses for registered funds to meet all the requirements for pension fund to be able to invest.

“One of the projects that we started at the end of 2019 and into 2020 was a new alternative equity fund – the Namibia Equity Infrastructure Fund (NEIF). This vehicle got all of its approvals at the end of 2019 and gave us a boost with investment into the real economy.

For us, that will continue to be a profitable venture despite the pressures that the general economy has faced.”

At the start of 2021, OMIGNAM acquired on behalf of one of our Funds under management, a majority stake in Aloe Investments Number Twenty-Seven, a project company and owner of the five MWp Rosh Pinah solar power plant in the Karas region in Namibia’s south. Active since 2017, the plant supplies to the grid through PPA with Nampower. For the local market, and for local investors, opportunities like this have become increasingly important.

“This focus on infrastructure in our market and around the world has become much more important and that creates efficiency and growth engines for the future. Solar and wind power are high level examples (exactly what the

OMIGNAM

NIEIF is targeting – equity investments into these projects). That has given us a boost during this time, and I suspect it will continue to be a lucrative area. These are long-term projects that are usually 10-years or more as well as the payoff, so it is a stable income generator,” details van Wyk. In the unit trust market, a consistently strong sector for OMIGNAM, the company is looking for further growth and this requires a clear and wide-ranging understanding of the market. The type of individuals investing in unit trusts are usually in the upper LSM levels and are possibly less impacted by the economic conditions on the ground. “It also tends to be a form of discretionary long-term savings for those individuals so it does broaden the client base and builds funding. That creates stability for us in the future and gives us a focus area,” explains van Wyk. Dollar-based money market funds, like the successful assets already run through Mauritius are also key in the company’s growth strategy. Spreading risk and growing this type of business is a target for van Wyk. “From a growth perspective, the Namibian market is quite concentrated and, similarly to the Mauritius funds we have, we will try and see where we can manage money elsewhere in Africa that relies on the existing types of transactions we already do,” he says.

“We are going to try and replicate our Mauritius funds elsewhere in Africa where there are investors with a need for a hard currency parking place. Dollar interest rates are virtually zero so as an institutional investor, if you can promise someone a bit of yield on those hard currency reserves, you are likely to attract that cash.”

NAMIBIAN HEART Around southern Africa, there is a trend surrounding the movement of funds offshore. It is well-established in South Africa where investors are keen to diversify their portfolio and protect their money from a single risk of the

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INDUSTRY FOCUS: FINANCE

Rand and the rollercoaster SA economy.

In Namibia a similar trend is underway.

But at institutional level, offshoring is regulated and the process of taking huge funds abroad is not a simple one.

For OMIGNAM, its home remains a vital market, and one which will offer opportunities, but diversification remains part of a responsible strategy.

“While the rhetoric in the local press is reasonably positive, we are struggling to see returns in the form of Foreign Direct Investment (FDI) in the country,” admits van Wyk. “There are ad hoc things that attract cash but on a net basis, the current account and the balance of payments remains under pressure. As an institutional investor, there is a legal limit to the amount that can be invested offshore and that is around 35% of a total pension fund or life company portfolio.

As asset managers, we vary our offshore component depending on the outlook for various assets. I don’t think we will see major changes for those types of investors. We are seeing big corporates and high net worth individuals becoming very attracted to investing offshore.

We will continue to see those types of investors looking for offshore vehicles with the involvement of local people that they know they can access. This falls into the Dollar money market funds and offshore equity fund that we are hoping to launch before the end of the year for retail investors. There remains growth in the offshore space, most certainly.”

But he says the company will obviously never write off its local market. “It remains an area of activity for us and we will continue to be competitive here, mining around in our local backyard. The economy has been under pressure over the last four years and I don’t foresee that turning around just yet. Namibia, according to Moody’s, was one of the countries with the highest increases in debt during the Covid period. Our government did not borrow for a long period, so there were no government bonds for us to buy into portfolios – that situation has changed dramatically and that is bad

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from a country perspective.”

According to the World Bank, Namibia’s GDP contracted more than 7.3% in 2020 and structural policy reforms will be required in order to raise Namibia’s growth potential. The pandemic has impacted significantly on the country’s economy and, with the hospitality industry slumping by almost half, there is much work to do to bring large groups across the poverty line.

NEW CONNECTIONS In finance, banking, insurance and investments, there has always been an assumed level of digitisation. A naturally growing phenomenon, the IT delivery systems in the sector have become more intelligent and more complex, and OMIGNAM has noted the increased use of digital tech during the pandemic.

Previously on a slow transition towards a more digital future, 2020 accelerated certain elements of uptake, especially in communications.

“Digital is impacting us in operational efficiency. We benefit from the digital revolution that we see globally,” confirms van Wyk. “One of the advantages for us as a country, because of how our settlement system and the whole process works, we probably operate on a similar level to how a fund manger in the UK would work. We can buy in or incorporate all of the same benefits in terms of automation in our

space. A good example is a change we made to administrators of our unit trust liability book to an entity called Jersey Trust Company. As an outsourced agreement, there is a focus from them for profitability as we pay them a flat fee per client, depending on the type of client, to enhance efficiency in the process. They give the unit trust customer the ability to contact via the web, and that focus on digital is there. In our world, we see that there are people with difficulty adapting to this.”

Clearly, the digital approach is proven and has benefits, but for many there is still much comfort to be found in dealing directly with a recognised face.

Pre-Covid, many of the conversations OMIGNAM’s senior management would have with clients would take place in a face-to-face environment. According to van Wyk, this will certainly return and continue for some time.

“The bulk of our clients are large institutional clients and they operate with a board of trustees who care for the pension fund. That is still the case, and while there is digital interaction, they still want to interact in person. Even this week, we have had to give feedback to one of the bigger pension funds who indicated that they would prefer a personal meeting rather than online. For us, as an investment house, the personal touch will continue to be important on the institutional side, while on the retail

OMIGNAM

side, digital plays a role in efficiency.”

Trading large sums of money comes with an underlying need for ubiquitous trust. For most, even in the biggest of global businesses, this is still far easier to build in a personal environment. In Namibia, where around 40% of people are internet-active, direct communication – especially surrounding high-value transactions – is the key to building trust.

“I work with a number of intermediaries who stay in small towns in the south of Namibia and they have a number of wealthy farming clients but they have zero ability to access client portfolios online,” says van Wyk. “They do not use email all that often so we have to physically mail statements and proof of deposits. I think we will continue to face a challenge with those types of people for some time. We find that high net worth individuals that are older in this part of the world still want to interact personally with someone if it constitutes rather larger amounts of money. This is common across the world.”

But some market segments are more open and willing to adopt digital solutions, and OMIGNAM has broadened its approach to tackle communication with clients through an omnichannel method.

“As part of our transition, there is a focus on enhancing digital interaction with the clients. Also, from a communications perspective, especially in the retail space, there is much more focus on communicating digitally. Old Mutual has defined a digital customer as someone on the book for whom we have a mobile phone number or email address.

Interestingly, after cleaning up data for KYC purposes, we have the ability to interact with more than 80% of our clients via text message or email.

Three years ago, that number was as low as 20%. From that perspective, there has been a jump forward in digital interaction but we are not yet at the level where the client interacts with the system completely without an intermediary being part of the solution,” says van Wyk. EXCITING? ABSOLUTELY Balancing success in 2020 with the clear and obvious challenges was difficult for most. Fatigue is perhaps the common sentiment felt amongst business leaders who have managed to drag and push companies through the storm. But the asset management space has been resilient, and

OMIGNAM has thrived thanks to a proactive mentality.

“Challenges are everywhere in the world, at all times. It’s about turning them into opportunities and that is the main goal. Every market goes through cycles. The big thing for us is that we are in a very open market,” says van Wyk. “As a country, there is a focus on involving private-public partnerships in infrastructure development and as an asset manager we are looking to tap into that through our new funds. We now have five alternative investment vehicles in total and it is an area of growth. Managed correctly, it is what is needed to revive the economy.”

The CEO is confident about the future, and it is clear that OMIGNAM has delivered the type of innovation needed to remain dependable despite many new hurdles.

“As a business, is it still exciting?

Absolutely. The world is open and available to us, which brings challenges and above all great opportunities,” he concludes.

WWW.OLDMUTUAL.COM.NA

www.enterprise-africa.net / 27

A-SURE CONSULTING

A-Plus for New One-Stop Solution PRODUCTION: William Denstone

“Creative underwriting. Innovative systems. Ground-breaking products.” These remain the central pillars supporting A-Sure Consulting, but it now prepares to inject life into the sector with the launch of its innovative one-stop insurance solution for small to medium enterprises (SMEs). CEO Thinus Janse Van Rensburg talks us through the outline of this innovative product, as the company bids to become the preferred provider through a comprehensive approach to cover.

//

“We are busy with a lot of exciting new things which we are working hard to get off the ground,” CEO and founder Thinus Janse Van Rensburg begins, with A-Sure Consulting poised to add another brave leap to its history. “We wouldn’t class ourselves as a ‘success story’ just yet, but in time we are certain that we will be.

“We have just finished building a product aimed almost exclusively at SME’s, and are now waiting for investors to come on board when we will be able to launch it in the commercial space,” Van Rensburg continues. “We will also accommodate personal lines, as well as catering for high-net-worth individuals (HNWIs) among others, but commercial SMEs will be our main focus.”

// MY VIEW IS THAT YOU MUST ALWAYS AIM FOR THE STARS // 28 / www.enterprise-africa.net

Priding itself on seeing the normal way as “a boundary simply waiting to be moved”, in just a decade of operation A-Sure Consulting has gone through several iterations, starting out as an administrator, then an Underwriting Manager, and now soon to be a fullyfledged Underwriting Management Agency (UMA) with a Cell Captive in partnership with Cardinal Concepts, focussed on short-term as well as life insurance group solutions.

ALL-IN-ONE The A-Sure Consulting mission is to bring together traditionally separate lines, such as commercial and personal, contractor works, plant all-risk and liability into a single policy. “We will do more than just sell our clients insurance, which is what sets us apart,” Van Rensburg elaborates. “We want to enable people to stay in business by giving them the systems and framework around it to construct an all-in-one

policy and a single product.

“Usually anywhere between four and seven policies across different, specialised fields are required for a business; we will put most of the those in one box including the owner’s private personal insurance. We will also be able to include Life insurance options like Credit Life, Funeral and other covers where needed.

“We are also going to help people to stay in business,” he continues. “For example, by introducing a recruitment benefit that can be added to the insurance, which most of the smaller guys cannot afford to use because the fee that you have to pay is way too high and due all in one go. We have made it so a smaller contribution is paid along with the insurance, and then everything around it like recruitment, legal services - even a business coach - is included.”

This is all part of, as Van Rensburg puts it, putting a stop to the senseless “robbing Peter to pay Paul,” approach

CEO THINUS JANSE VAN RENSBURG

INDUSTRY FOCUS: INSURANCE

that he has observed in the attempted rejuvenation and regrowth of the economy. “The only way to grow the economy is to create new businesses and new jobs,” he stresses. “What we are trying to do is keep the existing players in business, which is absolutely vital, and then create new opportunities for other promising ventures to be successful.

“In this way, and only this way, will we begin to see growth.”

INSURANCE INNOVATION When explaining the framework supporting this innovative method, Van Rensburg identifies one particular area of contracting as a prime target for A-Sure Consulting to begin to transform.

“The systems surrounding the product will primarily mitigate general risk,” he explains, “a lot of which will concern the threats present in normal, everyday situations that every business will face at some point.

“However, on the contracting front, with building for example, the system that we are going to employ is going to effectively take away all of the

30 / www.enterprise-africa.net

risk from what was traditionally a very problematic area of insurance, which is performance guarantees.”

Commonly used in the construction industry, this bond effectively guarantees satisfactory completion of a project and is a means of insuring a client against the risk of a contractor failing to fulfil their obligations. “With us,” Van Rensburg continues, “the contractor will no longer be forced to put up all the collateral that is normally required in such cases.

“The system we are going to use for this is proven over 16 years of deployment, and during that time anything that was put through it had zero performance guarantee claims whatsoever. Because it is managed so diligently, even the all-risk aspect of it is more protected and robust.

“This benefit means that a lot of the smaller guys, who were previously unable to gain tenders because they lacked the required collateral, will now be able to qualify, and the system will guide them through to prevent them falling behind and ensure a timely and

// THE ONLY WAY TO START THINKING OUTSIDE THE BOX IS TO INTRODUCE NEW IDEAS TO SUPPORT THE PRODUCT // successful completion.”

This is quite substantial proof that there is still room for innovation and forward-thinking in this ancient art.

“Our product is the first of its kind,” Van Rensburg underlines. “There is obviously a lot of insurance out there, but while lots of people have tried to do similar things there is nobody putting everything into this one package like we are going to.

“Insurance is insurance, you cannot really revolutionise it completely,” Van Rensburg admits, “but you can change the things surrounding it and which you use to mitigate the risks and make insurance work.”

A-SURE CONSULTING

SURE-FOOTED FUTURE The pandemic has wreaked untold havoc across industry, but A-Sure Consulting now looks to find the opportunity in devastation and the scope for reinvigoration. With all the

// WE ARE TRYING TO KEEP THE EXISTING PLAYERS IN BUSINESS AND CREATE NEW OPPORTUNITIES FOR OTHER PROMISING VENTURES TO BE SUCCESSFUL //

talk of this shiny new product set to hit the market, it is easy to forget that this is already an established company with a busy schedule in its current administrator guise; this latest innovative solution represents a complement and addition.

“We are not going to throw away what we have at the moment,” Van Rensburg confirms. “That will work for certain clients so that we can keep bringing them in well into the future.

The product that we are building is more focussed on a specific market and therefore opens us up to new and diverse business moving forward.”

Everything is aligning to make this the perfect time to expand. “We have survived through until now, and we believe that we have all things in place to move forward,” Van Rensburg wraps up. “Our plan is to spread like a virus -

everywhere locally within South Africa, of course, but our long-term goal is to extend beyond the borders.

“We don’t have our sights set on South Africa alone. We already have feelers out and people we can connect to when we are ready to expand, which we will do with a solid foundation within South Africa.

“My view is that you must always aim for the stars - that way, even if you just get to the moon, at least you got further than the guy without vision.”

WWW.ASURECONSULTING.CO.ZA

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SANLAM

The Dominant Force in African Insurance PRODUCTION: Timothy Reeder

In a lifetime filled with important financial decisions, Sanlam is there to help navigate what could otherwise be extremely daunting waters. Today one of the largest diversified financial services groups on the continent, by market capitalisation, Sanlam remains dedicated to cementing its dominance in Africa and exploring every opportunity to diversify. www.enterprise-africa.net / 33

INDUSTRY FOCUS: FINANCIAL SERVICES

//

“We contribute to financial resilience and prosperity in all the markets where we are present,” Sanlam sets out.

Headquartered in South Africa, this diversified financial services group operates across a number of selected global markets. In its more than 100-year existence Sanlam has been able to grow into one of the biggest internationally active insurance groups worldwide, and is classified as a domestic systemically important financial institution in South Africa.

“Our purpose is to empower generations to be financially confident, secure and prosperous. Our vision is to distinguish ourselves as the most admired financial services group in Africa,” the group explains.

Established as a life insurance company, today Sanlam is a diversified financial services provider, with an extensive product offering catering for all market segments and the biggest non-banking financial services

34 / www.enterprise-africa.net

footprint on the African continent.

Designed to be there for a lifetime of financial assistance, the group’s expertise spans life and general insurance, financial planning, retirement and employee benefits, investments and wealth management.

“We offer our clients a large and diversified range of solutions,” Sanlam affirms. “Omni-channel distribution ensures that clients are reached and serviced through their preferred channel with increased focus on developing our digital capability.”

AFRICAN DOMINANCE The Group has consistently grown its local as well as an international footprint with a presence today in more than 10 African countries, but has diversified too into others including India, Malaysia, Switzerland, the UK and Australia.

As CEO Paul Hanratty recently told The Africa Report, Sanlam’s decision to focus on Africa was an easy one.

// WE STILL SEE TREMENDOUS OPPORTUNITIES FOR VALUE CREATION IN SOUTH AFRICA // “We’ve got a billion people living in Africa,” he pointed out. “Very few of them have financial services – that’s a reality. If you want the economy to grow, you need financial services.

Financial services is like the railroad, you need to put in the railroad.”

Sanlam has remained steadfastly committed to its African operations throughout its long lifetime, and in recent years has reaffirmed this confidence through the acquisition of SAHAM Finances, the former insurance subsidiary of the SAHAM Group. A well-established and leading insurer present in 26 countries in Africa as well as in Lebanon, Sanlam took over

SANLAM

its control in three phases between 2015 and 2018.

Now called Sanlam Pan Africa (SPA) General Insurance, and based in Casablanca, at the close of 2020 Hanratty spoke of his enduring positivity surrounding the addition.

“SAHAM Finances brought a complementary footprint and has expanded our continental business presence,” he explained, “and given us particularly strong property and casualty insurance businesses in a number of African countries outside South Africa. We have got to know and appreciate this business over the last five years, and it is an outstanding business in every sense.

“We are fortunate to have acquired this business from the SAHAM Group who put in place a very sound set of operations and financial processes.

We are working hard to expand and widen the product set to be distributed through the SPA General Insurance network across Africa.

“In time we will build the business as the region is set to grow economically, while making life insurance an equally strong component of the offering.”

AFRICAN RAINBOW CAPITAL DEAL “South Africa is a vital market for us, and what I wanted to emphasise is that we still see a tremendous opportunity to grow in South Africa,” Hanratty was at pains to add. “The acquisition of SAHAM Finances has created a new long-term platform for growth, as has our Indian investment, but we still see tremendous opportunities for value creation in South Africa.”

Last year’s announcement of an agreement signed with African Rainbow Capital Financial Services (ARC FS) was the perfect example of the potential Hanratty describes, with the transaction establishing one of the largest black-empowered asset management companies in South Africa.

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INDUSTRY FOCUS: FINANCIAL SERVICES

// WE CONTRIBUTE TO FINANCIAL RESILIENCE AND PROSPERITY IN ALL THE MARKETS WHERE WE ARE PRESENT // “We are absolutely delighted with the creation of a new powerful asset manager in South Africa in partnership with Ubuntu-Botho Investments and African Rainbow Capital,” Hanratty effused. “The relationship between Sanlam and our partners continues to create value for Sanlam shareholders and the wider community that we serve in South Africa.

“This transaction takes Sanlam a step further on the journey to becoming South Africa’s leading asset manager.” The deal sees ARC FS own an approximate 25% economic interest in Sanlam’s South African third-party asset management business. It is also

36 / www.enterprise-africa.net

key in enabling Sanlam to explore opportunities to further develop its third-party asset management business, in partnership with UbuntuBotho Investments (UBI) and African Rainbow Capital.

“ARC Financial Services through its parent company Ubuntu-Botho Investments (UBI) has been Sanlam’s partner for more than 15 years,” Dr Patrice Motsepe, founder and chairman of Ubuntu-Botho Investments, commented. “With the latest transaction, I am of the firm belief that it will enhance Sanlam’s business as a serious contender in this highly competitive asset management space.”

Rumours now abound of further movement by Sanlam, in this instance to close a deal to see South Africa’s banking conglomerate Absa offload its Asset Management Unit. Absa, which had at the close of last year about R270 billion under the management of its Asset Management wing, was reported

by IOL News to be carefully considering the deal, which would create one of the country’s largest money managers, second perhaps to only the Public Investment Corporation.

STRENGTH IN UNPRECEDENTED TIMES The release of its 2020 results shows Sanlam to stand financially strong and resilient throughout the unprecedented health, economic and market challenges posed by the Covid-19 pandemic.

Reflecting the diversity and underlying durability of the Group’s

SANLAM

levels of client communication and financial plan reviews, premium holidays and direct financial support.

“Covid-19 caused pain for our employees, clients and communities,” summarised Paul Hanratty. “We lost loved ones, friends and colleagues.

Many people remain concerned about their financial situation, their employment and health.

“Sanlam has been there to provide support and advice. We are satisfied with our financial position which remained strong throughout 2020 as we implemented our strategy, while helping clients and other stakeholders to ensure a resilient future.” businesses, the group achieved overall net fund inflows of R62 billion, an increase of 8% on the prior year, while new business volumes increased by 25% to R311 billion exceeding R300 billion for the first time, supported by strong

investment business sales.

Various measures were taken to assist clients, intermediaries and partners in weathering the storm of the pandemic and adjusting their financial plans accordingly, including unprecedented

WWW.SANLAM.CO.UK

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LODOX SYSTEMS

Diagnosis: Good Growth in 2021 PRODUCTION: Karl Pietersen

South African manufacturing business, Lodox Systems, has managed to continue growing despite the tough conditions resulting from the Covid-19 pandemic. “It has impacted our ability to go out and market our life saving solution. It has also impacted our supply chain, logistics and our ability to service sites and keep contact with customers,” CEO Mbuyazwe Magagula tells Enterprise Africa.

38 / www.enterprise-africa.net

INDUSTRY FOCUS: ENGINEERING

//

2020’s intense and severe focus on global healthcare systems has brought to the fore shortcomings across almost all geographies. Innovation at lightning speed has been required to halt a pandemic where the lethal effects of an unknown virus have been quite clear.

As more information filtered through the medical industry about how to treat the millions of Covid-19 sufferers and stem the spread of the virus, the world has slowly turned a corner. But the repatriation of resources has left many without the care they need. It’s a conundrum on top of a crisis; one that will last a generation.

In the future, high quality, effective, proven, and affordable innovation will be essential for healthcare providers. The need for investment is now crystal clear.

Fortunately, this is where South Africa’s Lodox Systems can contribute.

This life saving company manufactures a unique and remarkable full-body x-ray imaging machine that delivers high-quality diagnostic images at top speed while producing very low radiation dose. Used in trauma and forensic pathology centres, the Lodox Xmplar-dr and eXero-dr systems are recognised as industry-leading equipment and have been installed in hospitals around the world.

In August 2019, Lodox CEO Mbuyazwe Magagula told Enterprise Africa that the company was keen on furthering its international exposure and would look to build on its already impressive global presence.

But that progress has obviously slowed following a year of disruption and stagnation.

TRYING AND DIFFICULT “It’s tough with the pandemic and we continue to experience spikes in infections, but it is levelling off.

It’s tiring and difficult to operate in this environment, but we have to,” admits Magagula. “The government continues to try and get economic activity moving and not shut things down further. December and January were very bad and the situation deteriorated quickly.

“However, we are still here, we are still operating, thankfully there has not been a huge impact, and we are optimistic. This has largely been through the efforts of our dedicated staff and the support of our loyal customer base and the fact that Lodox provides a world class lifesaving solution, fully African developed.”

The last two years have been good for Lodox with sales improving and the hype surrounding the machine after its appearance in American hospital TV drama, Grey’s Anatomy, still fresh in people’s minds.

“Since 2019 we have stabilised,” confirms Magagula. “We have seen good growth in the number of units that we are selling, both for the year ending March 2020 and March 2021.

The pipeline looks promising, so we haven’t been heavily impacted by Covid-19, at least on the sales side where we have continued to see some growth.”

However, operational performance and various working processes have obviously required adjustment so that the business can maintain efficiency and quality for clients.

“We largely rely on face-toface interactions and marketing at

// WE ARE LOOKING AT A PRIMARY HEALTHCARE IMAGING PRODUCT, MAINLY FOR MATERNITY USE TO MONITOR PREGNANCY. IT HAS BEEN DEVELOPED IN SOUTH AFRICA AND LODOX WAS SELECTED AS THE COMMERCIALISATION PARTNER. // 40 / www.enterprise-africa.net

// WE HAVE SEEN GOOD GROWTH IN THE NUMBER OF UNITS THAT WE ARE SELLING, BOTH FOR THE YEAR ENDING MARCH 2020 AND MARCH 2021.

THE PIPELINE LOOKS PROMISING // industry events, conferences and exhibitions, and these have not happened recently. We tried to attend some virtually and we have seen a mixed response. From a marketing perspective, it has impacted us as we are just not able to get around,” Magagula states.

“We have installations locally and globally, and from an after sales point of view, when there was a harsh lockdown locally, it was very hard for our service and maintenance and customer relations teams to keep in touch with sites and customers.

“On the supply chain side, problems persist. Some of our suppliers have faced disruption, especially where they are based in the UK, where they have been unable to access raw materials. That, in turn, has impacted us as we cannot always deliver machines on time. There have been general delays just because they are under severe restrictions. We have largely been able to manage this.

“On the logistics side, in terms of shipping machines, it has been problematic because of a lack of scheduled flights and the cost involved,” he adds. “We are starting to see availability return but the cost still remains high – almost three times what we were paying before, and we haven’t been able to pass that on, so it is eating into our margins.”

LODOX SYSTEMS

LONG TERM COST In terms of regular operational expense, the company has been forced to spend a bit more on health and safety, but Magagula is happy to ensure the safety and well-being of the team.

“On the operational cost side, with health and safety – providing PPE and ensuring the premises are clean – it has not impacted us too much but it is an extra cost we cannot ignore.”

Where Lodox has been successful in its daily work over the past year has been in relation to virtual communications. Connecting with clients and training operators has become much easier thanks to technology developments catalysed by the onset of the pandemic.

“There has been a positive in

the sense that the remote support to clients, in terms of training and service, has been accelerated,” says Magagula. “We need to be able to do the basic service and maintenance, even remotely, if we can. In the past, if a client came to us with a problem, we would have to jump on a plane or get in a car and drive. Now that we cannot do that as easily, we are looking to help remotely and only travel if it’s necessary.”

Obviously, the rapid switch from face-to-face to digital has highlighted some challenges for Lodox, but the company’s leadership has vast experience and is happy to adjust its approach to quickly overcome hurdles.

“There has been a positive shift in our working patterns. Staff that can work from home are encouraged to

do so,” says Magagula. “We are also a manufacturing site and we need our technical assembly staff on site, so there has been stress with some working remotely and some on site.

We have tried to update our mindset and manage the situation for results, and that does take some getting used to.

“People are working remotely and they have objectives that have been set and we are monitoring the deliverables, but as long as we achieve results then we have no problem with people working remotely. It does take some adjusting though as we are used to work being a place you go to and not something you can do away from the office.

We also have to be careful that team dynamics, connectedness and company culture are maintained.”

Established in 2005, manufacturing high precision components for commercial, medical and automotive markets CNC Turning | CNC Milling | Drilling | Surface Grinding

Tel: (012 804-5844 walquin@telkomsa.net www.walquin.co.za

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www.enterprise-africa.net / 41

INDUSTRY FOCUS: ENGINEERING

NEW OPPORTUNITIES The attraction of Lodox machinery includes its South Africanmanufactured credentials, highquality imagery, high speed and low radiation dose, proven results and many case studies of involvement in life saving diagnostics, and the ability to capture a whole-body image in a very short time thus giving the clinician full information on a patient’s injuries.

These attributes are why the current iteration of Lodox machines remain well-received. But innovation is at the heart of the company and so Lodox will continue to invest in research and development with the goal of improving and developing new technologies – perhaps in improving on price offerings for emerging markets.

“We are still working on improving the same machine, both on the trauma side in emergency hospitals and for forensics in mortuaries. Those are our two key

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markets but we have started looking at the development of an entrylevel machine,” details Magagula.

“We are still around 18-months away from rolling this out, but it will be happening, and it will help us service a market where high capital costs are a barrier. Some facilities do not see the level of trauma or the number of cases in a mortuary to justify that

capital expenditure, so the entry-level machine will be lower price but will have the same functionality in terms of image quality, speed and radiation safety. It will be designed differently to bring the costs down and that is why we are still some time away because we have to go through the entire design process and certification requirements before we can launch.”

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// AS LONG AS WE ACHIEVE RESULTS THEN WE HAVE NO PROBLEM WITH PEOPLE WORKING REMOTELY // Importantly, Lodox is backed by successful accreditation from various international bodies including ISO 13485 quality system certification, MDSAP quality system certification, CE Mark and US FDA (21 CR Part 820) compliance.

Because of this focus on quality, manufacturing, and sales and marketing experience, Lodox was approached regarding a new product for use in the medical environment, and Magagula is excited about what the future could hold.

“We are looking at a primary healthcare imaging product aimed at maternity departments to monitor pregnancy. It has been developed in South Africa and Lodox was selected as the commercialisation partner.

There is still some work to do in terms of looking at the markets and how big the opportunity is, whether a machine like this will address a market need, as well as how we manufacture it and

r b pe x pc e 0k of 0 1 s o ar 1 t e Y

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RU

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get it to the market. It will have to go through a registration process and so remains 18-24 months away,” he says.

The Lodox offering was preferred for this project because of the complete package that the company can offer, covering the entire value chain, and keeping development and distribution centralised. This is a key selling point for the business and one which Lodox is proud of.

“The partner went out and offered a request for proposals locally for medical device companies that could help them to commercialise and what swung it in our favour was us being fully integrated in terms of research and development, manufacturing, sales and marketing, service and maintenance, and training – it’s a whole value chain and they found that attractive. Our technical capabilities were also a factor, alongside the registrations and certifications that we hold,” he says.

RETURN TO THE STUDIO? In March 2013, the 18th episode of Grey’s Anatomy’s ninth series was broadcast to more than nine million American viewers, with the Lodox scanner performing a full body x-ray in seconds. From this moment on, the machine and the brand had recognition despite being displayed in

the fictional medical world. But even then, Lodox scanners were active in real hospital emergency rooms, saving lives with each use.

After a tough year for healthcare professionals and the wider industry, 2020 did feel like something from a Hollywood script. But with the good work being done internally, Lodox has managed to grow and expand its important influence. With new ideas being rolled out and existing sites being serviced in new but efficient ways, the future for this pioneering South African outfit looks bright.

As for TV appearances, Magagula does not have anything in the pipeline… for now.

“Interestingly, we were approached by a US-based TV production company who were working to very tight deadlines and who needed us to provide a Lodox machine, but they wanted to use it to show someone’s head being scanned in relation to Alzheimer’s. We had to decline because of the timing, and we felt it was slightly misleading to display the Lodox machine scanning for Alzheimer’s, which it cannot do.”

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GLODINA

Glodina ‘Covid Set Back’

but Remains Positive PRODUCTION: Karl Pietersen

KZN’s Glodina has for decades been a reliable and quality-driven manufacturer of towels, but after a scare in 2017 and now the wrath of a global pandemic, the company is faced with new challenges. Enterprise Africa talks to new CEO Abdul-Gakeem Satira about reinvigorating this stricken business and readying for the new normal.

//

Up and down is the story of Glodina. Like most companies, the peaks have been sweet and troughs sour. But this South African legacy has seemingly faced the extremes of the highs and lows. Founded more than 60 years ago, the company comes with strong South African roots. Known for producing high-quality luxury towels,

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Glodina has a reputation as a KZN manufacturer of choice, supplying into high-street retails stores, hotel chains, and many independents.

After leading the pack for decades passed, in 2017 the textile giant closed its doors after stumbling into a period of poor performance. A weak economic climate and the increase in imports saw all 550 employees

facing an uncertain future. It was a difficult time for the company, and the region. Located in Hammarsdale, on the outskirts of Durban, many of the affected employees would be unable to find new opportunities and, following the closure of another large employer in the area at around the same time, the government was forced to step in.

INDUSTRY FOCUS: MANUFACTURING

The Glodina Factory was at an absolute standstill for 12 months and in November 2018, the Industrial Development Corporation (IDC) announced that the company would open its doors once more. The iconic Black Label towels, famous for a soft and luxurious feel, could be manufactured locally again. R150 million was ploughed into the business, with investments into new machinery and efficiencies. Mark Goliath, the IDC’s textile lead and trouble shooter was installed as Interim CEO and looked to resharpen the Glodina approach.

He told Enterprise Africa that competitiveness was being reinstated by reducing bottlenecks in the company’s manufacturing processes.

Modernisations in the weaving shed, dyeing and finishing departments, makeup and sewing areas, as well as the introduction of automation would help to drive productivity and create a more seamless flow of goods.

After sinking to the unchartered depths, this textile phoenix was rising

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again. At the beginning of 2020, Goliath told Enterprise Africa once again that the company was moving in the right direction, improving from 30% capacity to 50%. Makro and Game were customers, and Colibri (a Western Cape towelling business and former competitor) had also been merged with Glodina. Things were looking good for the business as it attempted to bring manufacturing back to South Africa, demonstrating that the country’s sector could compete on quality and value, even with imports from the East.

But by the end of March 2020, South Africa (like much of the world) had been placed into a state of lockdown as a result of the Covid-19 pandemic. Tourism was decimated and non-essential retail forced to close.

Once again, Glodina was facing a very difficult test.

New CEO Abdul-Gakeem Satira, who was appointed to bring longterm sustainability and stability, was immediately in a whirlwind.

“I have been with the organisation for a matter of months and I have had to hit the ground running from day one,” he smiles.

DRIED UP Trying to balance continued production, sales, and finances, while also incorporating new technology into a business which is facing stunted demand is no easy task, and Satira has been forced to make tough decisions.

“From a Covid perspective, we have been hurt,” he says. “Covid has impacted all businesses, not just textiles specifically. It has definitely put a spanner in the works, in that a significant part of our business sits in hospitality and with the lockdown in full effect, combined with the international restrictions, a lot of that business has been taken away. We saw an immediate collapse in hospitality. We have however had instances where we have had some ease in lockdown restrictions and we would immediately see interest for new business within hospitality,

GLODINA

// IT HAS GIVEN US A PLATFORM WHERE WE CAN REASSESS OUR BUSINESS MODEL AND MAKE SURE THAT WE ARE FIT FOR PURPOSES IN LINE WITH OUR GROWTH STRATEGIES MOVING FORWARD // however Covid as a whole has definitely impacted us negatively.

“From an operational perspective, we were unable to complete some of our upgrades on time, which in turn has impacted our production output.

Though new technology has come to the market which we have installed in our mills, none of it could be effectively utilised in order for us to drive better efficiencies. So, we find ourselves in a similar position to where we were pre-Covid.”

At the start of 2020, Glodina had managed to re-employ more than 210 people and was on track to meet targets for the financial year. It had regained the business from hospitality giants Tsogo Sun and Sun International, and was targeting exports in tourismfocused economies such as Mauritius, Madagascar and some Indian Ocean islands. Other attractive areas across southern Africa had been targeted, but with a total collapse of people movement in a tourism capacity, these ambitions have been halted.

“Covid has definitely slowed down our progress but sometimes a slowdown is much-needed before you launch products into the market.

It has provided us a platform where we could reassess our business model and our capabilities to ensure we are fit for purpose, in line with our growth strategy moving forward,” says Satira.

TIME TO ADJUST Clearly, Glodina could not sit back and wait for the pandemic to pass, doing nothing at all. Satira has encouraged reassessment and refocussing of attention so that strategies can be executed effectively, making the most of all opportunities available.

“We’ve used the time to refocus our energies on other parts of the business, other than new sales, which also needs attention. These areas include improving processes, clearly understanding our real challenges and how we can affect that, and focussing on our commercial capabilities and what we need for the market. None of this, of course, being possible without investing in our people. This is one of our key priorities.” he says.

“As much as Covid has impacted the business negatively in terms of

revenue and production output, it has fast-tracked our focus on our development of our people, in our quest to provide excellent customer service through every-day-greatexecution.

“Right now, the aim is to stabilise the business and that is our core focus. When we have a certain level of stability, we then have the platform to sustainably expand into other growth areas. The important thing for us is not to do the same. If we are expecting improved performance results, then we have to change our ways or working.

We need to mitigate our risk and dependency on certain markets and diversify our customer portfolio and be more entrepreneurial. We need new areas of growth and there are a few projects on the way, on how we tap into these new opportunities.”

Chemicals CONGRATULATIONS TO GLODINA ON THEIR CONTINUED SUCCESS, FROM THE TEAM AT SS CHEMICALS (PTY) LTD

(+27) 082 553 1953 | hsf@sschem.co.za

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INDUSTRY FOCUS: MANUFACTURING

DIGITAL FUTURE? For now, as the market continues to settle in a post-pandemic world, Satira is keeping expansion plans close to his chest. There is a level of fluidity needed during these challenging times, and as tourism and hospitality remain uncertain, diversification will continue to be explored by Glodina.

“We have already started evaluating our current product and customer portfolios as well as our considerations of how we mitigate our financial risks,” he says. “With hospitality being such an essential part of our portfolio, we’ll continue driving growth in this area whilst expanding into new untapped areas in order to deliver sustainable business growth.

New product developments are already under way and as the market re-opens, we’ll be better positioned to provide improved service delivery with a variety of products available to choose from.

The emphasis on our brand moving forward is absolutely key to our success.

Competing like-for-like on price with imports is not a sustainable model for Glodina. A towel is not just a towel, especially when Glodina is your brand

48 / www.enterprise-africa.net

of choice. As my seven-year-old son articulates: ‘Dad, my Glodina towel is so warm and fluffy, I just want to use it as my blanket and go sleep with it’. Glodina is not just a towel, it’s an aspirational experience. It’s wrapping yourself in luxury in the comfort of your own home.

We want to sell this experience and win the hearts and minds of our customers.”

Textile imports in South Africa reached an all-time high of R5826 million in April 2020, increasing yearon-year since 2014, highlighting a disturbing trend of suppliers looking to China, India and East Asia and Pacific regions to satisfy a need. The Textile and Clothing (T&C) industry is a major job creator – especially in the low-skilled sector – and to see jobs being shed thanks to imports overtaking local supply is a long-term problem for the industry and government to address.

Interestingly, the pandemic has provided an opportunity for local manufacturers, with trade interrupted and large workspaces closed in foreign markets. Retailers had to turn to South African manufacturers to fill demand, and this is just the sort of opportunity that Satira and Glodina will look to grasp.

// THE IMPORTANT THING FOR US IS NOT TO DO THE SAME. IF WE ARE EXPECTING IMPROVED PERFORMANCE RESULTS, THEN WE HAVE TO CHANGE OUR WAYS OR WORKING. // “We will always be challenged with imports, however Covid has influenced the focus of local retailers, highlighting the importance of supporting local manufacturing. With this need comes the responsibility of providing excellent customer service, with a great sense of urgency and speed to market. We need to be agile in order to respond to the ever-changing demands from our customers,” he details.

“This is another positive for local manufacturers that has come through this process. We also cannot ignore

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the fact the e-commerce will now be more important than ever. Retailers and customer alike, now understands that we have to go digital if we are going to survive in this new world. Obviously there have been negatives, but there have also been some positives that we can extract from this entire process.”

Moving forward, if the company can take advantage of an increasing appetite for local supply from the country’s big retailers, as well as the emphasis being placed on local job creation by the general public and government, Glodina could secure a large market opportunity. The pandemic kickstarted e-commerce in South Africa – traditionally viewed as a nation with a love for in-store shopping. The country’s largest online retailer, Takealot, saw revenue up to the end of September increase by 41% over the previous

year. Massmart saw impressive online growth through a number of its brand channels, and supermarket retailers are also intensifying their digital efforts after seeing growth in demand during the pandemic.

“That being said, with South Africa being in lockdown and mostly only essential services operating, customers were just not able to get into stores and this has fast tracked the need to go online. All in all, we’ve definitely seen the impact of the economy shut down and people were very nervous about what happens next,” admits Satira.

Glodina has always bounced back when faced with difficulty. It is a company that has overcome hurdles and successfully navigated challenges while producing quality South Africanmade goods. The pandemic has forced a step-change within Glodina, and the

new CEO is ready to adjust to a different future. Establishing a new culture surrounding excellence, and driving sales in innovative new ways, Glodina is looking to life after Covid.

“Where Glodina found itself two years ago was unfortunate, however with that, there has been a change in culture and organisational behaviour.

A lot of time and energy has gone into people and making sure we have the right capabilities to manage the levels of technology we have brought into the company,” Satira concludes.

WWW.GLODINA.CO.ZA

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DEFY APPLIANCES

Defy Cooks Up New Plan for Sub-Saharan Africa Expansion PRODUCTION: Manelesi Dumasi

Driving a new brand purpose, underpinned by vital strategic pillars, Defy Appliances is proactively looking to drive market share across sub-Saharan Africa. CEO Evren Albas is keen to transform the business by implementing a collaborative approach across the entire value chain.

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Defy Danskraal Warehouse

INDUSTRY FOCUS: MANUFACTURING

//

In 2015, long before Covid and before today’s political/ economic turmoil had become part of the daily discussion in South Africa, one of the country’s leading manufacturing businesses was busy planning its continental expansion. Defy Appliances, part of the global Arçelik business, has been active in South Africa for more than a century. Now dominant across the country with a range of modern home appliances, Defy is looking to make the most of its international connections to push hard into subSaharan Africa.

Enterprise Africa heard from former Defy Marketing Director Rajan Gungiah in 2015 and even then, African expansion was on the cards. His idea was to move into two new countries each year for the next decade, while promoting significant investment and efficiency improvements at plants in South Africa as a major advantage over competition.

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In 2018, Evren Albaş was named as the company’s new CEO. A veteran of Arçelik group, having started as an engineer 27 years ago, Albaş brings with him an appetite for growth and a renewed focus on dominating the African market after an obviously turbulent 2020.

Originally from Turkey, Albaş moved to South Africa four years ago to lead Defy Appliances locally while pushing into sub-Saharan Africa. He was labelled as the Regional Director for Arçelik in sub-Saharan Africa and looks after export from SA into multiple African markets.

Arçelik owns 12 brands across consumer durables and electronics, and operates in 146 countries around the world. Apart from Defy in South Africa, another notable brand is Beko – recognised as a market leader in the UK and known as a global sponsorship partner of Barcelona FC.

SUB-SAHARAN GROWTH “From the beginning of 2018, Defy started to operate as the regional headquarters of the Arçelik global export business in sub-Saharan Africa,” Albaş tells Enterprise Africa. “We are managing our business in South Africa as well as the other 34 markets in sub-Saharan Africa. From Nigeria and Ghana in the west, Ethiopia and Sudan in the east, and all the way down to the DRC, Zambia, Zimbabwe, Angola, Namibia, Botswana – these are all within our territory.”

The group has placed a major emphasis on the continent and is keen to gain a position among the industry front runners in all major markets, with a particular focus on major African economies. Where the Defy brand is not as strong as the Beko brand, the company will utilise all resources at its disposal to ensure market penetration.

“Continental expansion is very important for us,” admits Albaş. “To get

DEFY APPLIANCES

Defy and Beko among the top three brands in the big African markets such as Kenya and Nigeria is a big target for us. We are doing everything to ensure we achieve this target including product strategy, strategic relationships, and good marketing.”

Currently, 80% of the product range sold into Africa – which includes washing machines, refrigerators, ovens, hobs, dishwashers, freezers and cooker hoods – is manufactured in South Africa at plants in Jacobs, Ezakheni and East London. The balance is shipped in from Arçelik manufacturing facilities around the world, from as far away as Turkey, Romania, China and Thailand.

“We are organically and inorganically well-connected to the markets in Africa. For example, in South Africa we have seven sales branches across the whole country and we have local and regional teams through dealer stores who manage the day-to-day relationships. We have this across Africa

too. We have 34 dealers with at least one in every sub-Saharan country. We are about to invest into an assembly line in Angola and this local presence and local connection gives us an advantage in terms of supply chain management, accessibility, and managing relationships,” details Albaş.

Over the next decade, you can expect to see product development and innovation from both the Defy and Beko brands to ensure suitability for continental operation. Clearly, subSaharan Africa is a very important sector for Arçelik and Defy, and the group will push whichever brand helps secure market share.

“Based on brand awareness, which is different in each country, we will go with Defy or Beko. Due to historical business connections, Defy is wellknown in southern African nations like Zambia, Botswana and Namibia. On the west and east, we mainly promote Beko brands,” confirms Albaş.

SOLAR HYBRID In February, Defy launched a groundbreaking new fridge freezer product which makes use of traditional electricity sources as well as solar energy when possible. The Solar Hybrid product switches between power sources based on the best available supply.

The statistics speak for themselves: reduction in energy cost of up to 44%, food stays frozen for 49 hours even without power (load shedding), and the cost is less than R6000 – cheaper than most alternatives. This product has been designed with Africa in mind and will be an important marker for strategy going forward. Defy is a ‘Proudly South African’ company, committed to enhancing capabilities and opportunities in South Africa and this, according to Albaş, helps differentiate the company from the rest.

“We have a real understanding of consumer market needs,” he says.

“Africa is a different market and the buying attitude is different. Economic

Defy Danskraal Warehouse

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INDUSTRY FOCUS: MANUFACTURING

// WHAT WE STAND FOR IS WHAT WE STAND ON – THERE IS NO PLANET B AND WE MUST DO ALL WE CAN TO PROTECT AND PRESERVE SO THAT FUTURE GENERATIONS WILL LIVE HERE HAPPILY AND HEALTHILY // power in terms of scale compared to the world average is different.

You have to adapt according to the consumer needs in terms of product innovations, cost structure, total cost of ownership when offering a product to consumers. Our local understanding really separates us from others.

Defy Offices

54 / www.enterprise-africa.net

“Defy is a South African company,” he continues. “We were established in 1905 and last year was our 115-year anniversary. As a company coming from humble beginnings, starting out producing stove parts, we are now producing state-of-the-art home electronics. There has been a big transformation in a country like South Africa which has had many ups and downs due to political system changes and macro-economic and social crisis.

Surviving in such an environment and bringing the business to where it is today is a great transformational story which makes us resilient. We were here 115 years ago and we will be here 100 years from now. This makes a big difference and gives great confidence to our business partners when it comes to the continuity of our business.”

The first-of-its-kind solar hybrid appliance was available through 78 stores around South Africa at the end of February. A simple installation process is managed, countrywide, by a trusted Defy partner and ensures longevity. By removing the need for costly inverters

and batteries, this Solar Hybrid brings the total cost of ownership down dramatically and answers an oftenasked African question. Defy will also soon roll out development of larger fridges and freezers to work with the Solar Hybrid system.

Acting as a leading solutions provider for the markets in which it operates is a key part of Defy’s new strategic brand pillars which Albaş will be pushing hard through 2021 and beyond.

BRAND PILLARS y reforging the company’s brand purpose, and looking at what Defy stands for as a corporate citizen and as a global operation, Albaş is bringing further Arçelik thinking to South Africa. At group level, Arçelik aspires to the vision of ‘Respecting the World, Respected Worldwide’. Defy, through its own brand pillars, will drive this vision in sub-Saharan Africa.

“We are trying to roll out our new brand purpose and align that with our business strategies. We are excited to spell out this purpose: Pioneering

DEFY APPLIANCES

our Future Together. It resonates very well in Africa which is a continent with obvious challenges but with a great and promising future,” he says.

“Internally, we have had workshops to make it crystal clear in terms of our core, what brings us in to the office and factory every day and what makes us work hard. We write this as our brand purpose and we strategize everything around that.”

The four pillars are: Pioneering Growth, Winning Together, Transformation, and Generational Custodians. For Albaş and Defy, these pillars encompass the entire Defy operation and provide a structural framework on how to move forward.

“First, Pioneering Growth. In order to do that we are continuously coming up with innovative products and tailor-making new technologies. We have launched the world’s first solar hybrid appliance – a clear requirement on a continent which is energy scarce and where cost of living is an important parameter.

“We are supporting this by investing in manufacturing efficiency and manufacturing quality. Right now, we have a lot of transformation projects in all of our factories. For example, in our cooking factory in Jacobs, Durban is undergoing a big transformation where we are investing in a lot of new technologies. We are calling this project ‘Jacobs Reborn’. It is a fascinating name for us as this factory is 115 years old.

Our company established here and is still operational here, and investing in Jacobs Reborn is meaningful for us.

“In Midrand, Johannesburg, we opened a large consumer experience centre to demonstrate all of the new product innovations to consumers.

In Kenya, we are opening a big retail laboratory in Nairobi to bring a new retail understanding to how we sell the appliances.”

Defy also continues to invest in new businesses, including small domestic appliance ecommerce offerings, to generate more revenue for the company

and for business partners, building a stronger industry.

Secondly - Winning Together. “This is a very important ambition for all of the company and we are trying to create a ‘one team’ understanding with our suppliers, workers, and dealers, and this is something we have become more aware of while we were under harsh lockdown,” admits Albaş. From 26 March 2020, South Africa entered its initial period of strict lockdown – one of the world’s most severe.

For many businesses, this time was fraught with worry and frustration.

But Defy engaged its entire employee base and business partners, ensuring continued operations as one team, with one goal. Across sub-Saharan Africa, the company ensured that every member of staff was aware of their contribution.

“We were impacted but we managed to keep our operation up and running through this understanding,” says Albaş.

The third pillar for Defy is Transformation. This involves making use of the Winning Together mentality to include as many as possible in the company’s success. Transforming supply chains, delivery models, product diversification strategies and operational thinking will help Defy to lead the industry in a new direction.

“By implementing our brand values, internally and externally, we are involving our partners in the business – suppliers and dealers – and finding ways to express the Defy transformational message,” the CEO says.

“In order to do that, we are investing in breakthrough transformational projects like

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INDUSTRY FOCUS: MANUFACTURING

opening authorised service centres in South Africa so that we can accelerate our service quality. We are investing in Artificial Intelligence for our supply chain and demand planning – we are studying machine learning algorithms to model our production demand and sales forecasting. We are investing heavily in development of our R&D capabilities, going beyond the South African borders, hiring engineers from Turkey to come and work in South Africa.”

Defy will make use of the HR capabilities at Arçelik to identify suitable candidates for development programmes. Already, this scheme has taken African engineering students learning at premier Turkish educational institutions and helped them into the business to progress new product ideas.

The final brand pillar for Albaş is being Generational Custodians. “This is all about building a sustainable future,” he says. “What we stand for is what we stand on – there is no planet B and we must do all we can to protect and preserve so that future generations will live here happily and healthily.”

To better manage its footprint, Defy is increasing the use of recyclable materials in its production across

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almost every product group, utilising more energy efficient technology in its manufacturing facilities, and is following a range of other energy saving initiatives.

“For example, in South Africa, we started an energy efficiency awareness company which is customer educational. We will train each consumer on what the energy efficiency label means and how much you can save if you buy an energy efficient appliance. If all South Africans moved up one level on the energy efficiency index, we could stop using two of the major power plants and stop using coal.”

Arçelik is the global leader on the Dow Jones sustainability index with continued sustainability efforts. It is the only appliance manufacturer to be ranked in two consecutive years.

FOR AFRICA Without doubt, Defy has not let the Covid-19 crisis dampen its ambitions and has in fact become more determined to deliver its brand of upliftment and opportunity. For Albaş, the company is more than white goods, it is more than a revenue feed into a larger global entity, and it is more than 100-years of development.

“We have 2700 people and it’s a big workforce that we are very proud of. They are connected through the business through our new brand purpose. We connected with people at every level and everyone knows about the strategic pillars. We are engaging everyone in the challenges and successes that we face, and we feel that everyone is well-briefed in what is needed for the future.

“We also want to create more employment,” he confirms. “In my opinion, a sustainable future is not all about products saving energy and being more recyclable; we have to bring a more inclusive financial system to life in Africa. The number of jobs is limited and young people are out there looking for jobs, so if we can offer more jobs and employ more people, across all of Africa, that will be a great win. It will increase our social impact as a company and that is one of the most important objectives for us.

“There is very rich human capital – the population in sub-Saharan Africa is already over one billion people and that is expected to boom over the next 15 years. These are young, creative entrepreneurs from humble backgrounds. This brings an amazing

DEFY APPLIANCES

positivity to the continent and we are very focussed on this, looking at how we can be a part of this growth with our strategy pillars.”

External relationships will also be enhanced, and there was clear evidence of the company’s desire to foster connections during the country’s closed period as a result of the pandemic.

“During the harsh lockdown, we reached out and checked the financials for those that needed support. Based on our capabilities, we tried to extend help and organise recovery plans for postpandemic work.

// WE ARE ENGAGING EVERYONE IN THE CHALLENGES AND SUCCESSES THAT WE FACE, AND WE FEEL THAT EVERYONE IS WELL-BRIEFED IN WHAT IS NEEDED FOR THE FUTURE //

“Our business is not just buy and sell so we have a long-term relationship with our suppliers. We are continuously developing new products and we need to offer spare part availability, and that requires a great process and business alignment with our partners. We are organising strategic meetings with our suppliers annually so that we can make them part of our new designs and involve them in the strategy. We want to use their knowledge and engineering to manage our design processes in a more agile way. Although they are separate entities, they are integral to our business so we treat them as part of the company,” says Albaş.

One product that found itself among the Defy range as a result of the pandemic was a specially designed ventilator used to assist critically ill patients with breathing if they are sedated or struggling thanks to virus symptoms. Manufactured at the company’s plant in Jacobs, the Impilo – the word for ‘life’ in Zulu and Xhosa – was lauded recently for its innovation. Developed in partnership with the University of Cambridge Open Ventilator System Initiative team, the Impilo received the Royal Academy of

Engineering’s President’s Special Award for Pandemic Service, as a result of their efforts in manufacturing mechanical ventilators for developing countries during the Covid-19 pandemic. The CEO praised local innovation and design teams, as well as the entire supply chain involved in bringing the life saving invention to the fore. Support from Arçelik, Beko, and Denel Land Systems was important and has helped to improve manufacturing methods in the country.

Clearly, Defy as a brand, alongside its global parent, is bringing original and innovative ideas to a market that is yearning for progress. With a refreshed brand purpose and a strategic roadmap detailing how this purpose can be achieved, Defy is well positioned to grow after the difficulty faced by all in 2020.

“It has been a long year but I am hoping and expecting, with the amount of science and technology in our hands now, that we can handle this and move on within this year,” Albaş concludes.

WWW.DEFY.CO.ZA

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LEMCO

Turnkey Structural Steel Diversification PRODUCTION: Karl Pietersen

Laubscher Engineering and Manufacturing Company (LEMCO) is a leading family-run structural steel business, active in South Africa for more than 50 years. After a strong period of growth, the company is now diversifying and consolidating, positioning itself for a changing future in the country.

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Stikland Industrial Park

INDUSTRY FOCUS: CONSTRUCTION

//

In September 2018, one of the Western Cape’s most prominent structural steel businesses was booming. LEMCO, a family business established in 1967 by Pieter Laubscher, was busy erecting steel buildings across multiple sites, bringing its well-recognised brand of quality to customers old and new, but always with the same result – complete satisfaction.

Andries Laubscher, second generation family leader, explained that by partnering with clients on an EPC basis and simplifying the construction process, LEMCO could deliver projects at large scale, high quality, affordable cost, and with speedy turnaround.

Over the last three years, the economic climate in South Africa has deteriorated further – fuelled by the pandemic. But LEMCO has continued to position itself as the partner of choice for structural steel. At the same time, a diversification strategy has helped Andries and Pieter, the Laubscher brothers at the helm of the business, to remain happy with circumstances.

“We have increased our footprint and we now have a 3500m2 production area. We have a 250m2 sand blasting booth, and 750m2 for paint,” Andries Laubscher tells Enterprise Africa.

The company has a portfolio of work dating back decades, listing major brands among clients. The likes of Takealot, Number Two Piggeries, Seaflower Group, GRI, Stikland Industrial Park, Apollo Air, Best Cheer Stone, GoGo Fruit, Alexandershoek Boerdery, and many more have trusted LEMCO to deliver industrial units, distribution centres, agricultural sheds and barns, shopping centres, showrooms, retail developments and more.

The Chalala pig farm from Number Two Piggeries in Malmesbury is a great demonstration of LEMCO’s abilities. Large, robust, weatherproof steel structures that cover vast tracts of land in an agricultural setting is bread and butter for the company.

LEMCO was active on a portion of this project in 2018, and it continues to expand three years on.

“The client has kept us very busy and we have probably done in excess of 45 football fields under roof. Right now, everything is finished and we are waiting for the next one. There seems to be no intention on their side of stopping so we are confident on continued involvement in future projects. We certainly deliver excellent service and great pricing, and it seems to be working,” details Andries.

Word of mouth is important in construction, and for LEMCO this has helped the business grow into sub-Saharan Africa, exporting structural steel products far and wide to country’s including Namibia and Kenya, and even Somalia.

The nature of the product from LEMCO lends itself to export. Designed to be simple for construction teams, components fit together without the need for extensive welding and complex engineering.

This concept has also been taken into the property development space by the Laubschers and is providing decent margins.

Apollo Air

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INDUSTRY FOCUS: CONSTRUCTION

DEVELOPMENT “We are involved in light industrial mini units,” explains Andries. “You don’t have to be a rocket scientist to run a project like that and for us, coming from the structural steel industry, we already do a quarter of a property project’s Rand value. The rest, we manage ourselves and use subcontractors. If you take everything together, including what you pay for the land and the work we put in priced as cheap as possible, there is a good margin in it.”

Slowly, the company is building a portfolio which is helping to drive residual income and providing stability during the pandemic where work in the general construction industry was put on hold.

“We have reached a bit of a ceiling and, in terms of personnel, we reduced by around 15-20% over the past year, and I don’t see that picking up soon.

For 2020 and 2021, we sustained our growth by starting to diversify and starting to enter the property development market,” says Andries.

“Obviously, we had some declines in work but, all things considered and compared to what I see with other contractors, we are still well off and very blessed. I do see that the market we

Best Cheer Stone

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operate in – the production of steel – is in a lot of stress. We are very blessed with the clientele and market that we service. Probably 95% of our work we do is design and supply. That gives you a little more margin as you sell a bottom line on a project, but when you tender with several other hungry companies for the same work, the guys who only work in that market will die a slow death.

“Steel itself will always be our big cash flow generator but to sustain in the future, development will be a good avenue and that has been proven over the last three years,” he adds.

Asked whether the future holds more of a focus on the traditional structural steel business, built by the family over the past half century, or whether property development will become the core focus for LEMCO, Andries is keen on the idea of consolidation while South Africa rides out the pandemic and refocuses its attention on reviving a critically unstable economy.

“I think we will focus as a core on expanding the property development arm of the business and we will look to utilise key personnel across both sides of the business to tap both skillsets. Then, we will consolidate

what we have and look to achieve the average margins we have for the past three years and we can then take that to develop property as cheaply as possible. We have kept everything we have built so far but hopefully in the future we can sell some too.

“When you start to get rental income, it become very addictive,” he adds. “In construction, you have to do something to get something. In rental, you start small and you keep building up and then you get the rental income at the month end; and then you can do another building - it becomes a snowball effect. We generate good profit if the right structural steel job comes along and we have good rental income on the property side. We will continue with this and consolidate what we have. We are a family-owned business and so we are not forced to shoot for the moon. We are able to work hard and be comfortable.”

HIGH-PROFIT, HIGH-QUALITY Consolidation is a key strategy for most right now, with the uncertainty in the South African economy present before the pandemic seemingly shot into overdrive, businesses must ensure long-term sustainability, and this can

LEMCO

Alexandershoek Boerdery

mean a period of consolidation before revisiting long-held growth strategies and ambitions.

“We want to sustain our profit by doing less work with less people.

Rather than doing 10 projects for a mixed gross profit on each, we would rather do three large projects with bigger gross profit to maintain the same profit at the end of the year. We intend to sustain the profit quantity and not profit margin, but that can

mean us facing less turnover in years to come. To achieve that, you have to throw a wide net. We have experience working around the south of Africa and so are happy to price on jobs, even they are further away from us,” says Andries.

The often-essential work carried out by LEMCO has and will continue despite the pandemic, and with demand unabating from all industry sectors looking for a design and supply

offering that is focused on quality, now is an interesting turning point in the history of the company.

Using all of the market knowledge held in the company, the decision to diversify into property development - while focussing on key, high-profit, high-quality projects - will drive LEMCO in the future as the company repositions for a post-pandemic environment. One thing is certain, quality and customer satisfaction will remain at the heart of everything this proudly South African company does.

“Structural steel is designed to be simple. That is why we like to work on EPC contracts. We can do the design and fit that design to suit our equipment.

My father always said ‘never adapt your labour force to the work, adapt your work to the labour force’. We make things simple and there is not a lot that can go wrong, that is why we have returning customers and a reputation for quality,” Andries concludes.

WWW.LEMCO.CO.ZA

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Dual form, fill and seal machine

NATIONAL PACKAGING SYSTEMS

Signed, Sealed, Delivered PRODUCTION: William Denstone

Packaging is the first and most crucial line of defence when it comes to ensuring product safety. It plays a critical role in maintaining the wellbeing and health of consumers, having to endure the shipping, material handling and storage of the prized and fragile contents. With nearly 40 years of history and innovation under its belt, Durban’s National Packaging Systems (NPS) can help with almost any product, arming both South Africa and the world with quality, robust solutions built to clients’ requirements.

//

Product packaging serves a much greater purpose than simply being sturdy, reliable and secure in order to protect what is inside. This is its core function but the cover is very often the first time a consumer will be introduced to a product or idea and form their judgements - a key differentiator in

competitive markets.

Safe, dependable packaging is without doubt the most failsafe way to ensure that consumers receive their wares in exactly the condition expected, ready to perform as desired, and offers an unmatched ability to inform, attract and retain both potential and already loyal buyers.

ROBUST INDUSTRY While National Packaging Systems (NPS) is an undoubtedly global enterprise, the packaging markets of both South Africa and Africa in particular have long been identified as some of the most robust, with high growth assured by socioeconomic factors and set to be further driven across the continent. According

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INDUSTRY FOCUS: MANUFACTURING

to Deloitte: “Demand [is] being driven by increased markets for consumer products, burgeoning individual incomes, an expanding population of youthful consumers and growing domestic economies - particularly those in East and West Africa.”

Smithers mirrored this outlook on a global scale as recently as 2019, estimating the total value of the packaging industry worldwide at $917 billion. Its comprehensive research, employed in its seminal publication The Future of Global Packaging to 2024, showed that packaging demand was set to grow steadily at 2.8% to reach a value of $1.05 trillion by 2024.

The robustness of the industry and its potential for seemingly untrammelled growth is thanks in no small part to its importance in the consumer products chain, in areas such as food and hygiene.

With consumption of the goods largely independent of economic cycles it is a sector mercifully robust against prevailing conditions and uncertain times; a growing population and a greater reliance than ever on distance buying means that products will always be bought, shipped and delivered, requiring the right packaging to reach their destinations unscathed.

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HISTORY OF INNOVATION “Our vision is to be the preferred provider in innovative packaging solutions,” sets out NPS, the staunchly local manufacturers of packaging machines and auxiliary equipment in South Africa. In the nearly 40 years since its founding NPS has pushed itself to achieve continued growth in this complex and multi-faceted industry. It can now boast a highly technical and innovative product offering, one which is central to its rightful recognition internationally as a

// WE LISTEN TO OUR CLIENTS AND THEIR FEEDBACK ABOUT THE MACHINES. WE ARE ALWAYS IMPROVING // business with a reputation for excellence.

NPS has a long history of augmenting and improving its service offering, never content to allow itself

to be surpassed in an industry which has left many behind. At its formation in 1983 its speciality lay in building vertical form, fill and seal machines for sachets, stick packs and pillow packs. This was supplemented with a comprehensive line of volumetric fillers, auger fillers, feeding systems and conveyors.

Come 1992 the original range of hydraulically operated models was transformed with the introduction of NPS’s own new pneumatic generation machines, using a belt drive pull down system. To this day the company’s machines are pneumatic and are also controlled via an inverter and a PLC. This means that speeds of up to 900 units per minute are achievable, depending on various factors including the product, its weight and the packaging material employed.

Innovation in the machinery at the heart of the packaging process has been something of a staple aspect of the industry, with easy to changeover, multi-functional packaging equipment central to how most food manufacturers are improving production and meeting consumer demand. This is according to the 2017 Vision 2025 report, produced by PMMI, The Association for Packaging and Processing Technologies.

Last time we caught up with NPS, CEO John Pelucci talked us through the importance of the company’s deep understanding of a machine’s requirements in giving it the edge over its many competitors. “We have a strong design team and we do a lot of design and development,” he explained. “We listen to our clients and their feedback about the machines - if they say that they don’t like a certain feature then we will remove it for the next design. We are always improving.”

As a result of its culture of nonstop improvement NPS machines can proudly offer cost savings, heightened efficiency and far superior speed to market for customers. These features are of paramount importance with

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INDUSTRY FOCUS: MANUFACTURING

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NPS counting some of the world’s largest and most successful food giants among its clients.

“We are into many big brands including Unilever, Cadburys, Sasko and Tiger Brands, among others,” Pelucci told us. “We have been told that we are the biggest manufacturer of packaging machines in South Africa, and while a lot of our competition build just one or two machines but are agents for many others, we are the other way around entirely - we build 40 types of machine with 60 variants and are agents for just four.”

BESPOKE SOLUTIONS “We are constantly involved in research and development, and our machines are very user friendly with minimal downtime and maintenance,” NPS sums up. “To the best of our knowledge, we are currently the only South African company that manufactures four side vertical sachet machines and three-sided stick pack machines that would otherwise have to be imported.

“Our equipment is well-known for its continued reliable service to the packaging industry. These hard-working machines are widely used to automatically pack amongst other things: sugar, rice, salt, peanuts, cereals, snacks, sweets, powders, liquids, fire lighters and even car components.”

While NPS has made in its name on the strength of its core line of machinery, among the more than 2500 projects it has under its belt to date is a burgeoning line of tailored solutions specifically delivering on individual needs. “We also specialise in bespoke systems,” the company states, “designed and manufactured to customers’ specific requirements and which are not accommodated by our standard range of machines.”

This was echoed by Pelucci’s description of a noteworthy project which had just been completed, for

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one of the largest companies in Africa.

“The beauty of our machine is that normally if you buy a four-sided-seal sachet machine, and you want to increase from a 60mm wide sachet to a 70mm width, you’d have to buy a new machine,” he detailed. “With us, the company can now do anything between a 65mm and 120mm in the same machine.

“No other machine in the world is capable of this, and it offers huge cost savings to our customers and with only a 30-minute changeover between sizes.”

A PACKED FUTURE “We see our mission as providing the world with user-friendly, purpose-built packaging solutions, effectively and efficiently,” NPS rounds off. “We aim to exceed customer expectations with integrity and honesty for the benefit of our stakeholders.” To realise these

lofty ambitions, NPS seeks growth wherever it may be found in order to drive continued development throughout the organisation.

NPS recently demonstrated its faith in the future of the business with a bold move from a 1250m² premises to the current 3100m² factory, almost tripling the premises in order to allow for vast expansion. “We provide a subsidised canteen as well as a gym for our staff as we believe in a happy and healthy workforce,” NPS adds, and it is a compliment which has also expanded by 25% including qualified, semiqualified, unskilled and sales people to cope with the extra client demand.

With installations completed throughout Africa, including in Angola, Botswana, Mozambique and of course South Africa, NPS has secured a seemingly unmovable foothold across the continent, and

its influence and presence look set to spread even further across the globe in years to come. “We are a well-known business on the content,” confirmed John Pelucci, “when it comes to salt or sugar packaging no one can touch us for speed - not even the big international players.

“We offer the full turnkey project from raw material coming into the finished product going out of the door,” he added, an approach which has seen this forward-thinking organisation become an example to follow, and an integral cog in its clients’ operations in territories the world over.

NATIONAL PACKAGING SYSTEMS

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BLEND PROPERTY GROUP

The Bank to Bring New Life to Rosebank PRODUCTION: David Napier

The Bank, from Blend Property Group, is the new business and lifestyle hub of Rosebank and brings together first-class business services, a new voco® hotel, and vibrant retail and hospitality offerings. The former FNB building is a flagship project for Blend and is also a demonstration of what is possible with modern green technologies. CEO Mark Corbishley tells Enterprise Africa more…

//

In Rosebank – the trendy cosmopolitan hub between central Jo’burg and Sandton – a one-ofa-kind development described as ‘the ultimate investment node in Johannesburg’ has been carefully created by Blend Property Group.

The Bank, a unique and historic high-rise, has been injected with new life. A 1970s FNB building, on the corner of Tyrwhitt Road and Craddock Avenue, The Bank is perfectly nestled

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in the heart of a thriving business, residential and lifestyle community.

Close to the Gautrain, Rosebank Mall, and the Zone shopping centre, this exciting new concept is a mixed-use development, home to first-class office space, an international hotel, and a restaurant which is quickly gaining a reputation as a shining light in the Johannesburg social scene because of its amazing food and chic but luxurious décor.

The 13-storey, 14,000m2

development from Blend Property Group is described by CEO Mark Corbishley as a ‘feather in the cap’ after what was a challenging year for all businesses battling through tough conditions brought about by the Covid-19 pandemic.

The Bank is a demonstration of the appeal of the area, attracting big names as tenants. It is home to the first voco® brand hotel in Africa – a product of the IHG Group – designed to bring business and professional

INDUSTRY FOCUS: PROPERTY

travellers to the area. Office space has been taken by consistently successful businesses including Rand Merchant Investment Holdings, Transaction Capital and Taquanta Asset Managers.

Workshop 17, one of the country’s leading flexible workspace providers, is involved with the provision of industry-leading office environments – an extremely important offering right now with the balance of home and on-site working shifting all the time. On the ground floor, the Trio Group has installed its latest offering, headed by chef Christo Nortier, the 250-seat Proud Mary restaurant.

Sketch Studio is a boutique interior design studio that specialises in retail and restaurant design. The studio is headed up by interior architect, Enrike de Villiers, and is based in the vibrant city of Johannesburg, South Africa.

Sketch Studio’s most recent completed project is Proud Mary at The Bank building in Rosebank.

Quintessence. Commitment. Convivial.

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A LANDMARK For what was previously a relatively monotonous ‘70s bank building, the R500 million project is a major achievement for Blend Property Group and is a testament to South African design and creativity. Stylish, modern, upmarket and packed with innovation, The Bank is a success story for Gauteng, where development has been mixed with cranes only seen periodically over the past few decades.

“We’ve just completed it and we see it as a true landmark in the heart of Rosebank,” says Corbishley.

“We acquired the building in 2016 and sought the best and most artistic minds in the country to modernise. It started out as a 4000 m2 four-storey structure but has been transformed.

“Most engineers will tell you that you can add one or two storeys to a property; we added eight. This involved significant reinforcement of the existing columns as well as beefing up the foundations. We had to bring in a specialised micro-pile machine (there was only one in South Africa) that could fit in our existing 2.3m high basement and place micropiles around the existing columns; it was a four-month process and was exceptionally difficult.

“We have retail on the ground floor, we have serviced offices in partnership with Workshop 17 on

BLEND PROPERTY GROUP

the first and second, we have some vanilla office space that is available on the third and fourth, we have a 131 key voco® hotel – the first in Africa -, and the top two floors are home to RMI Holdings in what we call the penthouse office spaces.”

Currently, the property is a complete project and 5000m2 of the 6000m2 total office space has been let. The hotel is expected to open in September as Covid restrictions in international markets ease and confidence returns to the tourism industry.

“It attracts global leaders who identify with the vision of living with easy access to modern conveniences and services without the pretentiousness so prevalent in upscale developments,” says Corbishley.

Rosebank’s population is small. The suburb only has a minor residential offering, but those that live in the area contribute to a range of big businesses with head offices based locally. Clearly, the appeal of Rosebank is for visitors. Shoppers, leisure, business and commercial travellers coming into the area know that they can expect vibrant pedestrian and café culture within the suburb’s characteristic village charm and contemporary city-style.

SA’S BEST The Bank has been lovingly revitalised

by South Africa’s own Daffonchio Architects and Enrico Daffonchio, alongside Nkuli Nhleko of Imbewu Design who completed the interior design. Littered with fine art, collated

by Art Gazette curator Morné Visagie and SA art veteran David Krut, shared space at The Bank has not been left out. One of the largest collections of South African art to ever be located in a single space, the collection at The Bank covers the restaurant, offices, hotel and courtyard.

Proud Mary, with its feeling of a glitzy 20s Manhattan whisky bar, was decked out by Sketch Studios and

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INDUSTRY FOCUS: PROPERTY

comes from popular restaurateurs Gary Hollywood and Warren Murley.

“We launched Proud Mary and it has been a phenomenal success – it is the talk of the town at the moment,” says Corbishley. “We have a huge number of A-listers that have frequented the space. At one lunch sitting, we had Victor Matfield on one table, Kerry McGregor at the bar, and Black Coffee with friends on another table. It is the place to be and it has created quite the spin in the Jo’burg social scene which is nice for social media attention.

“We took the decision to not have a food and beverage operation within the hotel, we decided to outsource it.

Proud Mary does both its own patrons as well as the hotel – so as a guest of voco® at The Bank, you can walk down and have breakfast at Proud Mary and it will be an à la carte breakfast experience rather than a typical hotel buffet. They will also do the room service, corporate functions for the offices, and food for Workshop 17.”

Importantly, The Bank has been designed with the future in mind and utilises modern technology that adds environmental efficiency to the building. Soon, the building will operate completely independently from the Eskom grid, and Corbishley is also keen to get the building away from the national water supply.

// WE TRY TO BUY WELL; REWORK THE ASSET - DEVELOP IT, EXTEND IT, REPURPOSE IT, PUT IN NEW TENANTS, GET THE RENTALS UP, STABILISE IT, AND THEN MOVE TO THE NEXT PROJECT // 74 / www.enterprise-africa.net

BLEND PROPERTY GROUP

“It’s a nice story in terms of the greening of the building,” he says.

“We have some amazing technology, including a 90kw solar array on the roof and a 416kw gas genset as we are connected, via a high-pressure gas line into the building, to the Egoli Gas line. We expect the building to draw approximately 400kw on average and, for 90% of its usage, this building will be completely off-grid. We are looking at putting a battery pack that will be able to store energy and take us off the power grid completely.

“We are busy installing a borehole in the basement which will supplement the municipal supply, this water will be filtered to sans 214 compliance before joining our municipal supply.

“We have a first-of-its-kind in Africa air conditioning system – a Mitsubishi VRF. As all units are linked to a central control, we are able to load throttle the start-up and prevent unnecessary peak draws. The hotel component uses Mitsubishi’s two-pipe heat recovery system, this system uses special BC controllers that use by-product from one unit for another unit’s heat/cooling source.

In the morning, heat given off by cooling rooms on the eastern façade is diverted to units on the western façade that are in warming mode; much of the building’s need can be handled just by off-setting, without the need for external energy sources – it’s very clever.”

The design of the façade includes 65% face brick and 35% double glazing - 12mm argon infill with thermal aluminium frames and automatic louvres for the harsher western façade.

The Bank also comes with a full ICT package, including back-up

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INDUSTRY FOCUS: PROPERTY

internet lines, to ensure businesses are uninterrupted. Valet parking services and video conferencing booths complete the offering, highlighting the building’s focus on a modern, smart way of working.

BEST IN CLASS Blend Property Group, established in 2006, has been working to bestin-class standards since day one.

The company has seen the ups and downs in the economy and property industry, and has successfully navigated each situation.

Perhaps one of the company’s most notable projects, prior to its work in Rosebank, is the Harrington in Cape Town. Just to the east of the city’s CBD, the 11,000m2 building is a mixed-use space, home to flexible office space and secure underground parking. Completed in 2017, the

// MOST ENGINEERS WILL TELL YOU THAT YOU CAN ADD ONE OR TWO STOREYS TO A PROPERTY; WE ADDED EIGHT //

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project took a similar path to The Bank, revitalising an existing structure and bringing it into the modern world while at the same time boosting the local community.

Blend’s expertise is demonstrated across its rich portfolio. “We are a privately held commercial property fund,” says Corbishley. “60% of our portfolio is offices and the balance is a mix of industrial and hospitality assets. We tend to trade a lot and we have five-year investment terms on most of our assets.

“We try to buy well; rework the asset - develop it, extend it, repurpose it, put in new tenants, get the rentals up, stabilise it, and then move to the

next project.”

Currently, the company’s gross asset base is around R2.2 billion across a gross lettable area of around 200,000 m2.

But, even for a business like Blend with many years experience and enviable industry knowledge, work has not been easy. The commercial property market was under pressure for many years prior to the onset of the Covid-19 pandemic, thanks in part to the continued lacklustre performance of the South African economy. Retailers are now reimagining their physical premises – with digital commerce and cost as a first thought; office space occupancy

BLEND PROPERTY GROUP

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is being overhauled as businesses adapt to new working patterns and trust employees to work from home; and property owners are looking at how they can secure their yields without scaring investors and tenants.

Interestingly, in April, South Africa’s real estate investment trust (Reit) or listed property sector became the top performing asset class on the JSE. This bounce back is welcome after a very difficult 2020 for the industry. Most point to

// IT STARTED OUT AS A 4000 M2 FOURSTOREY STRUCTURE BUT HAS BEEN TRANSFORMED //

the lifting of harsh restrictions and resultant economic improvement as key drivers of growth. If the country can avoid further Covid19-related waves, harsh lockdowns, and manages to improve its vaccine rollout, there is confidence that the listed property sector can strengthen further. Property is still a haven for investors and especially those who know what they want and which partners will help them achieve it.

Blend brings property management and corporate real estate services to the market, and the key selling point across these offerings is the ability to allow clients to focus on their own core business.

In the future, the company is investigating new mixed-use projects, including two exciting prospects in Gauteng, and is bullish about where

its ambitions can be taken.

With most talking about the pandemic in the past tense, Blend - as a fully integrated property business – will use The Bank as a prominent part of its marketing moving forward and will look to continue doing what it does best - what it has done for the past 15 years, achieving phenomenal results with its portfolio.

The powerful New York art decostyle design of The Bank now fits seamlessly into the Rosebank skyline, bolstering the appeal of the area and proving what is possible with the right approach.

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MRC GROUP

Building Envelope Installer

Posts Strong Growth PRODUCTION: David Napier

MRC Group is ensuring that South African structures are secure, warm, safe, and protected by designing and installing industry-leading building envelope solutions.

The company is busy with a major project at the Port of Durban, and is looking to secure its reputation as one of the best in the business. CEO Richard Polling talks to Enterprise Africa about how the company has grown.

//

South Africa in 2013, after the global financial crash and post FIFA World Cup, was similar in economic backdrop as it has been for much of the past three decades – not living up to potential. Too many still out of work, corruption still seemingly rife, a tax base too small to deliver true change, intermittent energy supply – the list goes on. But GDP still grew by 2.5% compared to the previous year – one of the better performing countries globally.

For entrepreneurs Richard Polling and Marc Ferriman, there was an

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opportunity. Investments were being made into property. Companies and property owners were beginning to shift focus towards refurbishing and upgrading their facilities, and government was spending on new infrastructure.

The pair established MRC Group and began to work on building projects, contracting as metal roofing installers.

After not long, the quality of work was clear for all to see and the company was asked by its clients to expand its service portfolio. Polling and Ferriman

obliged. From here, MRC Group boomed and quickly garnered a reputation as an industry-leader. Economic uncertainty, political instability, and unfavourable conditions could not stop this roofing specialist crashing straight through the ceiling and aiming for the sky.

“Our first contract was on the other side of the country and was a 12-hour journey to Upington where we had to take some insulation out of a roof and put new insulation in. From there, we went from strength to strength,” remembers Polling.

INDUSTRY FOCUS: CONSTRUCTION

QUALITY PARTNER The Gauteng-based business is now the partner of building owners, developers, architects, quantity surveyors, and structural engineers, all over South Africa and growing into the sub-Saharan region.

“We are well-known for highquality,” confirms Polling. “People know that we are not going to be the cheapest, and we trade on the basis that we are never going to be the biggest.

But we do like to ensure we are one of the best, if not the best, in South Africa. We take pride in what we do but, because we offer the design service, it means we have to take full responsibility for everything we do.

“90% of our work is in South Africa. We do have potential projects in Nigeria, and we have done work in Botswana, Namibia and Zambia, but we do focus on South Africa as there is plenty of work here.”

The envelope of a building is where MRC delivers expertise.

“Whether it’s a façade, a waterproofing system, a metal roof, green roof, living walls, corrosion coating, dry walls, fire walls, fire ceilings, raised access floors, rain screens – we cover everything

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and we are different because we offer full design as well as installation and maintenance,” details Polling.

Typically, many buildings in South Africa have been constructed using outdated technology and lacking adherence to international standards (Class B insulation is an important example). Of course, modern structures are almost universally well-built, but for older buildings and those requiring immediate maintenance, MRC is the perfect partner.

“We have now done work in most towns and cities in South Africa because of what we do and how we do it. Around 70% of our work is refurbishment and 30% is new build,” says Polling.

SHIP SHAPE Currently, a major project for MRC is the new MSC Cruises Passenger Terminal at the Port of Durban. This R200 million project started in 2019 and was led by the KwaZulu Cruise Terminal Consortium (KTC). MRC Group has been integral in the development of this exciting new building which is set to receive cruise line guests from all over the world when the tourism industry is allowed to operate

// FROM A BUSINESS PERSPECTIVE, IT DID NOT IMPACT US TOO MUCH AND THE REALITY IS THAT OUR PIPELINE AND ORDER BOOK IS EXTREMELY HEALTHY // without restriction. Previously, MSC Cruises docked one liner at the Port of Durban but decided to double its traffic into South Africa thanks to increased demand. In the future, MSC will operate the Opera and Musica out of Cape Town and Durban, with each ship capable of carrying thousands of passengers. The previous arrival terminal in Durban, the N-Shed, was a makeshift building that has been operating for several years.

The new structure is leagues ahead of existing infrastructure.

“We are at the end of that project and we have completed a full roof cladding system and façade system all in one. That was a big project for

MRC GROUP

us and it will be an iconic building in Durban. It’s a parabolic design and small triangles make up a larger triangular shape across the entire roof area. It’s highly challenging and it is one of our most iconic buildings,” says Polling.

The terminal building is a 5000m2 concrete and steel structure with multiple different areas required for inbound and outbound travel, including immigration, police services, baggage handling, check-in, and more.

Internally, the finishes create a quality impression with beech ceilings and polished concrete. Externally, the roof and façade are firsts for South Africa, made from a composite structure supporting Equitone panels in an intricate arrangement.

Away from Durban, the company is also busy with a long-term contract for a large technology business investing in data centres. A building, or space within a building, dedicated to the storage of computer, telecoms and storage systems, data centres are becoming increasingly common, and their development has been spurred by the pandemic with digital communication technology driving the business environment.

For MRC Group to be involved in projects like this is a big deal for Polling.

“We have a number of data centres where we are handling the installation of the internal building envelope,” he says. “We are also handling the inside and outside façade in a major five-year development. There is a lot of investment going into data centres – perhaps thanks to Covid and the resultant switch to using technology every day.”

Major data centres are planned for Johannesburg, Cape Town, and Stellenbosch. Careful planning and development has to go into the construction of a data site, with extensive consideration given to fire protection and cable routing. Large data halls must be fireproof, cool, wellinsulated, and will sometimes require raised floors and specialised cladding.

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INDUSTRY FOCUS: CONSTRUCTION

This is why MRC Group us a contractor of choice.

“We tend to be involved with our clients for more than 20 years. It’s a different approach to most contractors who go in and do the work and leave.

We do the maintenance too, and most maintenance schedules run twice a year so we are constantly reminding our customers that we are here,” says Polling.

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GROWTH X3 For many in construction and development, the past 18 months has been a major challenge with Covid-19 restrictions preventing ordinary work to continue on site, and money from investors drying up or being held back. Despite the essential nature of the industry, there are few who can state that the

last year has been business as usual.

For MRC Group, while the industry has been slowed by the effects of the pandemic, the work has not dried up and Polling has given the instruction loud and clear: Full steam ahead.

“I’m bored of the Covid story,” he states. “Going into Covid we had a lot of work and then the SA lockdown hit but we were allowed to work as a contractor under emergency legislation. We were allowed to assist in emergency situations with repairs and other work. We didn’t do a lot but it was enough to keep us ticking over.

“When we came out of lockdown, our workload was reasonably healthy and we have gone from strength to strength. The business turnover has increased by around three times.

From a business perspective, it did not impact us too much and the reality is that our pipeline and order book is extremely healthy.”

This continued stream of work can be put down to three things

MRC GROUP

– quality of portfolio, quality of relationships, and the never-ending nature of maintenance when it comes to buildings.

“From a maintenance perspective, you either have it or you lose your warranty. If you don’t maintain your roof or water proofing, all the money you’ve invested is at risk as you will lose your product guarantee.”

Because of the company’s history and the ability to prove its worth, long-term and direct relationships with clients are helping to consistently grow the MRC Group pipeline.

“We don’t tender for a lot of work, we negotiate directly with our clients. The type of client we are involved with is blue-chip.

Consol Glass, BMW, MercedesBenz, Redefine – a lot of the bigger developers. We are doing a lot of work for PepsiCo and KimberlyClark right now – it’s mainly a lot of the bigger property owners. We don’t tend to work for a contractor, we work directly for the client themselves,” explains Polling.

In order to market the company effectively, major projects are showcased through social media specifically LinkedIn where MRC Group is constantly active in trying to build its profile.

“We are one of the only companies in South Africa who puts this level of detail into social media but people recognise it and appreciate the transparency,” says Polling.

“We do a lot of Facebook and LinkedIn. We do a lot of technical articles in construction journals. We have a lot of different sites and a lot of technicalities that we are trying to show people. We don’t polish our photos or make any enhancements – we show people exactly what is going on and they can see for themselves the work that we do and the quality we install. It also allows us to show the challenges we face on site and displays the true live environment that we work in.”

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INDUSTRY FOCUS: CONSTRUCTION

SUPPLYING THE BEST The MRC Group process is startto-finish. There is no parachuting in and leaving before the end of a project. The company describes its involvement as ‘cradle to grave’. From the initial design process through specification, installation, and maintenance; by utilising industry leading products the MRC Group brings international excellence to South Africa.

“The type of work we are involved with is highly technical

and we are bringing systems and solutions into South Africa from all over the world,” says Polling.

“We only work with good quality products that come with good quality technical back up. It’s all very well having a great product, but if you’re not there to help us on site or to help our design department then you’re not going to be a lot of good.

It’s a mixture of technical capability, quality product, quality material, and stock availability.

“Our relationship quality with

// WE WANT TO BE THE COMPANY THAT EVERYONE COMES TO WHEN THERE IS A DESIGN CHALLENGE OR WHEN THEY NEED HELP AND ASSISTANCE //

84 / www.enterprise-africa.net

our supply chain is imperative for the business – our supply chain means everything to us. The reality is that they are there to support us. The type and size of project that we are involved with, it would be impossible to fund without a quality supply chain that helps us bring about the results we want. A lot of what we are doing alongside our supply chain is helping them make more work and they help us by supporting us through our installations.”

STEELED FOR THE FUTURE Construction and development continues to change as an industry sector – especially in South Africa.

New materials, new regulations, new parts of the country, and new total cost structures are important for all contractors to take into account. For Polling and Ferriman - both industry veterans, running MRC Group for almost a decade – shifting concepts are well received.

“We have grown into the marketplace and we are now starting to see much more opportunity. More and more solutions and more technical offerings are coming to the table but that is an evolutionary process.

“We were in the heart of the process of changing regulations around how to build. Our changes included ensuring more, thicker and better insulation is used to keep buildings warm and cool. We were at the heart of that change and it is going out to public committee as we speak.

“The major change for us is seeing a switch from new build to refurbishment as people cannot afford the new build side of it.”

To ensure a streamlined approach to each project, MRC Group has split its offerings into separate divisions, each capable of delivering the precision and quality that the company’s reputation is built on.

“Our divisions include water proofing, metal roofing, façade, and

MRC GROUP

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// PEOPLE KNOW THAT WE ARE NOT GOING TO BE THE CHEAPEST, AND WE TRADE ON THE BASIS THAT WE ARE NEVER GOING TO BE THE BIGGEST. BUT WE DO LIKE TO ENSURE WE ARE ONE OF THE BEST, IF NOT THE BEST, IN SOUTH AFRICA // green roofing. But even though we have segregated the business, we are a lean machine. We have 20-25 internal staff and project managers, and we have around 140 on site staff. It’s responsive to the work we have, and right now we are busy,” details Polling.

In the future, MRC Group is certainly looking to take the bull by the horns in terms of driving progress in a sustainable and quality-focussed way.

“Our design capability is a real differentiator. We don’t sit and wait

for people to give us solutions – we give them the solutions and we tell people how things should be done,” Polling confirms.

With the global community now seemingly looking beyond the pandemic, and the SA economy predictably unpredictable, the CEO is confident about what lays ahead.

“There is money to be spent and the South African story is that people are starting to invest in the country again – we are seeing that.

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We are seeing the data centre work, we are seeing food storage facilities, we are seeing distribution centres.

Commercial has been hit in terms of office blocks, but everyone has to refurbish their buildings.

“We want to carry on growing.

If we haven’t already done so, we want to establish ourselves as the go to building envelope installer and supplier. We want to be the company that everyone comes to when there is a design challenge or when they need help and assistance. We are getting there, and it is our goal for the next two to three years,” he concludes.

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SECURITAS SA

Multifaceted Approach

Safeguards Securitas Growth PRODUCTION: Manelesi Dumasi

By complementing a formidable manned guarding operation with new technologies and digital innovation, leading private security firm Securitas has become an industry leader in South Africa, continuing to perform well despite the impact of Covid-19. Country President Ashleigh Parry tells Enterprise Africa more about the acceleration of a twinned strategy.

//

The Covid-19 pandemic has imposed undeniable change across many industry sectors. Digitisation and technological advancement are the obvious examples for most workplaces, but changes to the well-recognised social construct have also come about, with redundancies and joblessness buoyed by the total slowdown in

people movement and investment.

While cost containment and survival were the foremost concerns for most businesses – even the largest –, people bore the brunt.

And in South Africa, where official unemployment figures were already sitting at above 30%, millions of jobs were shed as companies looked to reduce costs and protect their future.

As economic strength wanes, crime levels increase. The South African Police Service (SAPS) highlighted a number of worrying trends for the final quarter of 2020, including an increase in the number of car jackings which reached a five year high, house robberies increasing by 7.6%, and an 8.4% increase in the murder rate for the first quarter of 2021.

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INDUSTRY FOCUS: SECURITY

This is, perhaps, the reason the country turns to private security. It is well-documented that the country has one the largest private security industries in the world, with the sector employing more than double or treble the number of people compared to the police. 10,380 security companies employ some 2.5 million security officers, of which more than half a million are active.

One of the biggest and best in the country is the regional arm of the global Securitas business. Employing 5000 people and delivering a range of services, Securitas RSA is a powerhouse player in this busy and vital market.

EXTRA SECURITY “Sadly, it’s a grudge purchase because the country’s police are so resource strapped,” says Securitas Country President, Ashleigh Parry. “It creates an environment where there is an obvious need for security services.

Before Covid, our socio-economic circumstances drove the need, and post-Covid so many jobs have been lost and people’s livelihoods are under pressure. The financial implications of that mean that people are even more cash strapped than they were before. It’s a terrible situation that does result in extra crime, and drives the requirement for extra security.”

In March 2020, just as the scale of the pandemic was becoming

// WE ARE NEVER WAVERING IN OUR COMMITMENT TO OUR ETHICS ARE KEEN TO BROADCAST THAT TO OUR CUSTOMERS AND PARTNERS // 88 / www.enterprise-africa.net

clear, Parry told Enterprise Africa that the company was at the start of the journey that would see its traditional strength - manpower – being increasingly supported by a comprehensive technology offering.

The pandemic has accelerated this rollout and has changed people’s expectations of the industry, but manpower in security has no substitute and this core strength will not ever be neglected.

“On the ground, not much can change as we rely on manpower.

We have hastened our approach in supplementing manpower with technology. It has allowed our strategy to be enforced and progress more swiftly,” says Parry.

“I don’t think we will ever get away entirely from feet on the ground and our strategy has always been to complement our manpower with technology - this has facilitated that happening much quicker,” she adds “Transforming our manpoweronly sites to provide a solution that involved technology is being facilitated. A lot of people are a lot more open to it and, in fact, baying for it. Accompanied with everyone’s granular focus on costs and trying to keep them under control and/ or reduce them, this assists them in that aspect. Technology is cheaper than manpower and that is a widely accepted reality now.”

Securitas is a world-leader in digital solutions, sharing bestin-class offerings between global divisions. Remote video services including alarm verification, entry and exit management, perimeter protection, and virtual escort, patrol and supervision are delivered through cutting-edge cameras and software. Major clients in South Africa have made effective use of the combination of intelligent services on offer from Securitas and its testimonial book is strong. This, according to Parry, is thanks to the company focusing on its core and not

// DECISIONS ARE MADE EASILY, AND THOSE IN SENIOR ROLES ARE EMPOWERED TO MAKE DECISIONS RATHER THAN HAVING TO GO THROUGH RED TAPE AND BUREAUCRACY BEFORE ANYTHING GETS DONE // spreading itself thinly across multiple product and service channels.

“We have tried to maintain our focus on our core ability and not try to offer everything to everybody.

There are trends in the industry like offering thermal cameras. We looked at those offerings and made sure they align with our core capabilities and didn’t force us to try and be something different. The technology aspect, while it is a big part of our focus for our strategy, has been facilitated by Covid because lots of access and less manpower, and all the things that come with it, have been highlighted for our clients.”

The company has been on the hunt for new, faster, better, stronger products to offer to clients, and as the pandemic has worn on, the hard work has not stopped. This is driven by the desire of clients to make the most of the technology available and maximise their investments.

Traditionally used to minimise loss, the varying scope of use for security technology has been highlighted.

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INDUSTRY FOCUS: SECURITY

MAN & MACHINE At its root, the security industry is people focussed and the acceleration of technology adoption is vital but remains complementary.

“Our protective services, developed together with our customers, are designed to incorporate a high degree of technology content. While manned guarding still represents the cornerstone of Securitas, we continuously work to develop our offering,” the company states.

This ongoing development has also been required internally where, again, the pandemic has altered the norms.

Asked what changes have been felt, Parry cites collaboration.

“It is in line with how most other companies have progressed. Moving from a lot of personal interactions to remote and virtual meetings was a big change. Interestingly enough, that process allowed a lot of our teams to become much closer because it was much more regular and forced. That was a positive side effect as we realised more cohesiveness and closer interaction among teams and divisions.

“More of the technological

Ashleigh Parry - Securitas Country President

90 / www.enterprise-africa.net

proficiency we have studied during the Covid period is about the stabilisation of platforms and the uniform standardisation of aspects that run behinds the scenes. Being able to be brand agnostic and bring new tech into our network while offering the same streamlined service – a lot of hard work is being done on that.”

Thanks to this improved cooperation and intimacy within teams, a fluid and flexible mindset has been accepted by all.

“The big thing for us is a conceptual mindset change. It’s more about being able to keep up with change while being flexible because we don’t know that the next disruptor is going to be. Covid as a disruptor has highlighted how flexible we need to be and how we need to adjust very rapidly to changing circumstances. That change in focus and mindset allows us to rapidly deploy and be very movable on what is required for our clients,” says Parry.

One of the criticisms of security firms – especially the large, global organisations in SA – is typical of those across all industries: cumbersomeness.

Where speed and decisive action is

// IT WAS COVID THAT FORCED AN ACCELERATION OF OUR DIGITAL STRATEGY IN THIS INSTANCE, BUT IT WILL BE SOMETHING DIFFERENT IN THE FUTURE // essential, large players can take time to deploy as direction is needed from the top and through many managerial layers. At Securitas, this has been identified and mitigated by removing unnecessary layers, and installing clear communication channels and empowered employees.

“We have 5000 employees and our agility comes from our flat management structure. Decisions are made easily, and those in senior roles are empowered to make decisions rather than having to go through red tape and bureaucracy before anything gets done. That is refreshing for clients as well as they are able to get hold of a decision maker easily and they don’t have to wait for a whole lot of decisions to be approved,” says Parry, an industry veteran with experience across several industryleading organisations.

It is this nimble, agile approach that has allowed the company to swiftly roll out its strategy of twinning technology with traditional manned guarding.

While others were still looking into rudimentary technologies, Securitas was already rolling out data analytics and detailed intelligence reports for customers, proving the worth of a multifaceted approach.

“It was Covid that forced an acceleration of our digital strategy in this instance, but it will be something different in the future. The dual aspect strategy, pairing digital with human

SECURITAS SA

resources - rather than specifics around hardware - is what our clients are really buying into. That, coupled with our transformation, is helping us. We are approaching clients saying this is a great time to start reviewing things and looking at risk assessments with this new approach in mind,” says Parry.

PROTECTING ETHICS But, of course, quality human capital, technological leadership, and an agile and deft strategy mean nothing without a commitment to good governance and sustainability. At Securitas globally – more than 370,000 people across 58 countries - the entire operation is reinforcing its purpose and ensuring each employee is familiar with exactly what is expected.

“From top level down, through country Presidents and all the leadership teams, we are going through a process of signing a commitment letter to our values and ethics so that we can broadcast and ensure that we are living and breathing good governance and doing the right thing,” explains Parry. “That is so important in the

environment in South Africa because of the disastrous corruption the country has witnessed. We are finding more and more that companies want to do business with clean organisations. A couple of the deals we have landed over the past few months have been a result of us actually coming second in the bid process, but the initial winner has failed in due diligence. We are never wavering in our commitment to our ethics are keen to broadcast that to our customers and partners.”

During 2020, the number of registered, employed private security agents in South Africa increased for a fourth consecutive year, according to the Private Security Industry Regulatory Authority (PSIRA). The relatively uncomplicated and less restrictive environment is often viewed as a quick route into employment for many, and as demand continues to boom while state police effectiveness remains under scrutiny, it seems that this is an industry that will grow in power, pressure, and potency.

For Ashleigh Parry, the past 18-months have been challenging operationally and the Country President

is still hoping to revert to a more recognised environment soon, but provision of quality service remains the number one priority – as it always has.

“Last year was hard and this year is harder because there is so much fatigue in dealing with so many new things around how we interact and engage. There is a sense in our minds that it is temporary but a very long temporary, and everyone is feeling the same fatigue around how work is progressing and if we will ever get back to normal and interact with colleagues in a regular way. We will continue to lead the transformation of the security industry by putting our clients first.

We will continue to solve problems by offering qualified and engaged people, in-depth expertise and innovation across a portfolio of services, the ability to combine services and solutions by using data to add further intelligence,” she concludes.

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