Enterprise Africa March 2022

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AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

March 2022

www.enterprise-africa.net

Capitalising on the ‘Last Automotive Frontier’ Exclusive interview with Mike Whitfield, Chairman Nissan Africa South & Managing Director Nissan Egypt ALSO IN THIS ISSUE:

Broll Property Group / CJP Chemicals / Metso Outotec / UDM International


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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 Ekwa Bikaka  ekwa@enterprise-africa.co.za PROJECT MANAGER Christina Allcock  christina@enterprise-africa.co.za PROJECT MANAGER Eleanor Sarbutt-King  eleanor@enterprise-africa.co.za PROJECT MANAGER Leanna Lucas  leanna@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za FINANCE MANAGER Paige Atkins  Paige@enterprise-africa.co.za CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR CONTRIBUTOR

Manelesi Dumasi Timothy Reeder Benjamin Southwold William Denstone

As we move to a postCovid situation, a war and humanitarian crisis erupts in Europe, and those looking for stability in global economies in order to make crucial investment decisions are again blighted. Europe is a major source of FDI for South and Southern Africa and, undoubtedly, this will slow decision making processes. But this scenario is not new for South African business leaders. Practicing stability in the face of constant uncertainty has been a much-needed characteristic for those in senior positions. Even in the most challenging situations, where the road ahead is muddy and cloudy, senior decision makers continue to perform admirably as South African businesses move onwards and upwards. Nissan is the perfect example. Now incorporating a continental focus, headed out of SA and Egypt, this auto giant is aiming for African dominance with quality products sold in every market, alongside a cultural understanding of how and what to sell. Mike Whitfield, Chairman Nissan Africa South & Managing Director Nissan Egypt, tells us more. Broll provides another key example. By making quick and informed decisions, the property company has managed to continue achieving growth, and will grow in the future despite economic conditions. Jess Cleland, COO: Africa, elaborates. Metso Outotec, global mining equipment supplier, is also taking a wider view on Africa and choosing to supply products and knowledge across borders to reduce risk of single market reliance. Francois van Tonder, Marketing Director – Africa, provides insight. There is a lot happening in Africa right now, and despite pandemic, war, economic sloth, and political uncertainty, the companies that are bold and brave are realising positivity. Get in touch and tells us how you are making the most of the new normal. We’re online through LinkedIn.

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX

Joe Forshaw

EDITOR

+44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2022

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

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UDM INTERNATIONAL UDM Drives Culture of Success as Sales Skyrocket NISSAN AFRICA Capitalising on the ‘Last Automotive Frontier’ FORD SOUTH AFRICA Global Auto Business Eyes SA Opportunities ELECTROMECHANICA Driving Industry Best Practice BROLL PROPERTY GROUP Broll’s Strategic Shift for Core Growth and Innovation ATTACQ Architect of Development and Progress METSO OUTOTEC Planet Positive Plan Set Out by Metso Outotec CJP CHEMICALS New Recipe for Growth TRANSNET Localisation Drive Fuelling Transnet Future

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CONTENTS

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WINELANDS PORK Quality Focus Assured at Winelands Pork DE KEUR Rich Pickings for South Africa’s Cultivating Kings MONTIGNY INVESTMENTS Extracting Maximum Value from Precious Timber WOOLWORTHS Retail Pioneers Pursue Pivotal Green Goals CASHBUILD Built and Rebuilt on Immovable Foundations RAND MUTUAL ASSURANCE A Policy of Care and Compassion NETCARE Person-Centred Care with a Sustainable Heart ADVANCED HEALTH Advancing the Day Hospital Revolution in South Africa SANRAL Reliable Road Network Transforms Lives and Livelihoods www.enterprise-africa.net / 5


UDM DRIVES CULTURE OF SUCCESS AS

SALES SKYROCKET SELF-PROCLAIMED BEST SALES BUSINESS IN THE WORLD, UDM INTERNATIONAL CONTINUES TO GROW AND THRIVE THROUGH AN ENVIRONMENT DESIGNED AROUND SUCCESS, WHERE PEOPLE ARE RECOGNISED AND VALUED, AND WHERE MOTIVATION COMES IN THE FORM OF FINANCIAL REWARD AS WELL AS IMPROVING THE LIVES OF CUSTOMERS. MD AND CO-OWNER JACQUI VAN DER RIET TELLS ENTERPRISE AFRICA MORE.

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“We can sell anything,” smiles Jacqui van der Riet, Managing Director of UDM International, a leading South African direct marketing business. “It’s incredible what you can sell over the telephone with the right incentive structures for your staff, the right recognition, the right training – I believe we could sell anything.” Established in 1994 as a modest sales operation handling a small number of promotional insurance campaigns, UDM has changed, adapted, survived and thrived through all that South Africa has thrown at it over the past three decades. Economic evolvement, socio-economic shifts, technological transformation, and regulatory rollercoasters have moved the goal posts – many times – but UDM continues to score, notching up highly impressive sales numbers for its clients. An employment creator, this 380-strong company is on the rise, consistently bringing in new people across multiple disciplines while others slowdown and dwindle because of weak market conditions that came as a result of the pandemic.


UDM INTERNATIONAL

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“Now, we are on an amazing growth path and there is a different feel in 2022. We are seeing that people feel we are approaching the end of the Covid disaster and the mood in the market, as well as the mood of staff, is all about recouping and growing,” van der Riet tells Enterprise Africa. But industry commentators are quick to chime ‘sales is hard, sales only allows you to be as good as your leads, working in sales bring too much pressure’. In fact, even global CRM business Sales Force has released research demonstrating that sales is one of the toughest career choices because of the demand for relentlessly increasing productivity, the challenges in reading each individual customer, and the need to take personal accountability for results. The Wall Street Journal released a report in 2021 detailing that, even with high pay and large numbers of vacancies, fewer and fewer are looking to get into sales worldwide. The industry has earned itself a mixed reputation, but companies that solve problems and work alongside clients and customers, rather than only in self-interest, are reaping the rewards of the new market which is more consultative and transparent.

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SELLING SUCCESS For UDM, sales is not about being pushy or selling for the sole purpose of commission. The company works almost as an extension of its client and delivers services that make a difference in the lives of the customer. For this reason, the company is flourishing and changing the image of the world of sales through a vibrant, attractive company culture. “We take on around 30 trainees every single week and they go through a 12-week training period. Initially, they are on a temporary contract but if they are good enough over the 12 weeks then they will be offered a permanent position. Of the 30 trainees,

THE SAFEST WAY FOR UDM TO GROW WOULD BE TO FORMULATE OUR OWN PRODUCTS – THAT DOESN’T HAVE TO BE INSURANCE


UDM INTERNATIONAL

I DON’T BELIEVE ANY OTHER COMPANY HAS THAT AUTHENTIC RELATIONSHIP OF SUPPORT THROUGHOUT THE ENTIRE COMPANY

only 6-10% end up permanent because it is a difficult job that requires discipline, hard work and high productivity. As a result, we are always looking for new people. “We are currently redesigning our training division, just because I feel that the percentages of people going permanent are not high enough. I have included all of the top salespeople – and we have an elite team – and they are the highest earners in the company, and they are helping to compile training which comes straight from the horse’s mouth. We are hoping that more realistic training is going to help us keep more people permanent,” explains van der Riet. Often a quickly forgotten fact, sales is the lifeblood of any organisation and without a growing pipeline and a set of real people who can get deals over the line, progress will slow very quickly. With this vital cog in place, selling useful and tailored products becomes easier, helping to drive performance for all. “When we sell cancer insurance or accidental disability cover, we feel we are making a difference in people’s lives – that can be more important than money,” says van der Riet.

Locally owned, female-managed, with a proven track record, UDM delivers growth and development. The company is well-versed in all regulations and requirements in the local market and has clean and concise processes to avoid the often long and loathed methods associated with organising insurance over the phone. The company only employs people and doesn’t not use any form of robo-callers or recorded messaging. CULTURE RULES Bullish van der Riet, who has been with the business for 27 years, says that the key to efficient and effective sales is motivation of people. By looking at how salaries are made up, and paying well above the market average, employees have a clear vision on how to go about improving their pay packet. “When people hit their targets, they are very well renumerated and they earn more than most highly professional people,” she says. “The motivation is money, but there is also an atmosphere where people are highly recognised. We give out awards every week and we have a really fun vibe that breeds success. It’s contagious – when you’re in the building and you become part of it, it becomes addictive.”

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EVERY BUSINESS TEXTBOOK WILL TELL YOU TO HAVE ONLY ONE MAJOR CLIENT IS THE WORST IDEA Company culture is listed by Forbes as the most important element in strategy, helping to attract and retain talent, build a strong brand, and grow turnover. At UDM, the culture has been nurtured over a long period and the result is a driven environment where people support each other while having fun. Importantly, van der Riet is sure this culture gives UDM the edge over competitors. “It doesn’t exist anywhere else currently and would take a lot of time and effort to recreate,” she explains. “Of the people that leave, 70% beg to come back. I don’t believe any other company is as generous with their staff, I don’t believe any other company is as involved with their staff, I don’t believe any other company has the family atmosphere, I don’t believe any other company has the fun that we have, and I don’t believe any other company has that authentic relationship of support throughout the entire company – that is what makes us unique.” Add a competitive bonus package and a structured method to the mix and you have a recipe for success. “Everyone earns a percentage of what they sell and that kicks in at 50% of their target. As you reach more of your target, your incentives increase. Between 90% and 100% of target, there is a big gap, but it could mean a R25,000 a month difference in salary. Bonuses then kick in at 105% and 110%. People are always aiming higher as it makes a big difference to their income. The combination of people knowing exactly what is expected of them, the tools they are given to work, and the motivation to get involved and work makes for a great offering where everything is achievable,” details van der Riet. “Everybody in the company is planned for every hour of the month. We have huge schedules where we know how many leads we will be getting on certain campaigns and we know how many hours we have for people to work on those campaigns. People do not sell across all products, they are focussed on certain campaigns. We will put people where they are most suited. We give people targets and leads in advance and everything is very organised. It is strategic and well planned.” PEOPLE POWER UDM’s devotion to its people was displayed as the Covid-19 pandemic emerged and rolled on. A crushing blow for many companies, UDM thrived as customers became more available and the importance of risk protection was thrust

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UDM INTERNATIONAL

into the spotlight. Adjustments to the sales process to up volumes as pricing reduced was quick and seamless. “Our contact-ability skyrocketed and that helped our business tremendously,” says van der Riet. “The downside of that was that our client is the insurance company and we get paid for every sale that we make so we don’t get involved with sending of policy documents or collecting premiums. They found that even though we were making thousands and thousands of sales, they weren’t necessarily collecting very well. With the change in the economy and affordability being hampered by Covid, people became more conservative with their spending and there was a lot of job losses and reductions in salaries. As a result, our client said to us that they would reduce premiums from around R250 per month to around R99 per month. Our fee is completely linked to the value of the sale, so when the premium goes down, we are earning a third of what we were. To counter, we have had to look at volumes. We are bringing in lots more people and throwing everything at the R99 premiums.” The result – more jobs were created and the company did not retrench a single person. A streamlining process allowed for each individual to be utilised to maximum capacity so that the company continued to grow and deliver for its client. The partnership between UDM and its Insurance Company client goes back more than two decades and has been one which both parties have received major benefit. The client offers top class insurance services including cancer and accidental disability policies. In the early days, it built an amazing network through a referral scheme but needed a marketing solution to drive sales. UDM had been handling small-scale sales for the likes of AIG, Protea Life, Alexander Forbes and others, but stepped in for the client and never looked back. The relationship became exclusive in the early 2000s and both boost each other’s success. “It really has paid off,” van der Riet smiles. “Every business textbook will tell you that to have only one major client is the worst idea, but it has been very good for us. We bend over backwards for each other and we are dependent on each other for the success of both businesses. “I often worry about what would happen if we lost our client, but I have to remember that we are just as valuable to them as they are to us. As long as we keep ourselves valuable then we will continue to succeed.”

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Thankfully, van der Riet knows how to remain valuable and keep a company nimble. Joining UDM as a part-time receptionist 27 years ago, she has a deep understanding of every aspect of the business. Initially, she came in to simply answer the phone, but got bored and started to drum up competition with another employee who was tasked with collecting new details from policy holders whose renewals had lapsed. The excitement and earning potential was a draw for the young professional, and she developed new strategies based on previously ignored statistics. But she quickly became aware she must start to bring in more business – the start-up was not flush, and a more comprehensive approach to growth was required. “When I started at UDM, our turnover was R2500 per month, my salary was R4500 so I knew quickly that we needed to get some work in here,” she remembers. “Word of mouth in the industry ensured that people knew who we were and we then got enough business to get some employees in permanently. We got some work with AIG and other big-name insurance companies, and then we were approached by the owner of our insurance company client who could see that direct marketing had huge potential. Back in the day, it was about sending out thousands of mailshots to people in the post and then waiting for them to fill out applications and return them. If you got a 1% return, it was considered a success. But with telemarketing there was an expectation of around 13% which was great. We managed to get data and began selling, upselling and reselling to people, and that is when our client wanted us on an exclusive basis. We started selling a women’s cancer policy and that cost R49 per month and we then started to try and add a husband to a policy which meant we could sell two policies in one call. That took our business through the roof almost overnight.” Quickly, the company jumped on the opportunity of selling to the male population and began with an accidental disability

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WE ARE ALL DOING SO WELL AND WE ARE IN CONTROL OF OUR DESTINY AND THAT IS A BEAUTIFUL THING policy which was eventually offered to women too. Traditionally, because of the nature of the referral model used by the client, UDM’s exposure in the African market had been limited, but this changed with the launch of a new product range from the client. “We started selling cancer insurance but that was difficult. We tested a TB product, and that didn’t work. So, we now sell accidental disability and death cover into the African market and that sells very well. Many people travel by taxi and it can be quite dangerous, with many accidents, but we cover any accident.” Away from insurance, the company also boasts a strong cosmetics sales business, broadening the portfolio and demonstrating van der Riet’s claim that the company can sell anything. “Our main focus is insurance, but we can’t underplay cosmetics. Last year, we sold around R145 million of cosmetics and that is amazing how we can do that telephonically without sending sample packs or anything like that - it’s all about the conversations. We send a yearly supply and we then deduct monthly on a subscription model.” FUTURE GROWTH There are obvious growth strategies for UDM, including finding new customers, selling more products, and driving for improved conversion figures, but in a direct marketing business you cannot simply grow overnight – for every new growth phase, the company needs more people. At the same time, the


UDM INTERNATIONAL

company currently has more than enough business and an exclusivity agreement with its premier client. So, van der Riet is considering options. “The safest way for UDM to grow would be to formulate our own products – that doesn’t have to be insurance,” she says. “At one stage we were looking at organic cleaning materials. We started developing the products and we started to build a database through a referral scheme. But we struggled to get the profitability that we need. We couldn’t get the margins and it was a real stretch to find that. “To grow quickly, we can introduce more products with our current client but also take on new business with new people. We have a great relationship with our current client – we earn the most money with them and their data is amazing, but we always keep our eyes and ears open.” In terms of geographic expansion, right now van der Riet believes UDM has more than enough opportunity at home in South Africa and is not looking to grow beyond the country’s borders. In the past, the company has explored opportunities in the UK, USA, Poland and other areas, but with limited success and a complex regulatory environment, a decision was taken to remain in South Africa. “All the directors of both the client and UDM are very happy with that decision,” she confirms. And when it comes to the future much further down the line, no concrete plan is in place – again, UDM will take opportunities as they come. One thing is for sure, the company structure will not change.

“I don’t want to sell. I don’t want to list. I don’t want to retire,” declares van der Riet. “We are all doing so well and we are in control of our destiny and that is a beautiful thing. I want to protect what we have which is a great thing and a unique situation where people are happy.” She adds that even if the company was to look at opening another branch in pursuit of growth, this could fragment attention and take away from the highly impressive work the company is doing right now. Key in the success of UDM is an unyielding focus on being the best and achieving results. This mantra has run through the business for many years, and is delivered through a top-down approach with every employee understanding the importance of their role. Ultimately, the company’s mission statement is to be acknowledged as the most professional, ethical and successful direct marketing organisation in the world. “I don’t accept second best. We have a great understanding of that and our staff are very supporting of that ethos.” Apparently, UDM is taking inspiration from Nelson Mandela, who said: “I never lose, I either win or learn.” Expect brilliant things from this business in the future. With such great accomplishments already achieved, and with a culture of excellence spanning a magnificent group of people, UDM is certain to grow, and continue driving results for clients while solving problems for customers.

Visit www.udm.co.za

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NISSAN AFRICA

Capitalising on the

‘Last Automotive Frontier’ PRODUCTION: Eleanor Sarbutt-King

Nissan is searching out pole position across the entire African continent as it launches new campaigns around localisation of value chains and tech advancement. From its world class manufacturing facilities in South Africa, Mike Whitfield, Chairman Nissan Africa South & Managing Director Nissan Egypt tells Enterprise Africa that plans are moving in the right direction. www.enterprise-africa.net / 15


INDUSTRY FOCUS: AUTOMOTIVE

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For most, the potential of Africa as an economic case is undoubted. 54 countries with much untapped potential, both in terms of market opportunities as well as human capital and innovation. Home to a major part of the world’s population, but receiving comparatively miniscule total investment, it’s obvious that the continent’s only direction is up – as long as effective management, intraregional trade, and industrialisation is allowed to thrive. In his 2013 book, ‘Emerging Africa: How the Global Economy’s ‘Last Frontier’ Can Prosper and Matter’, former Deputy Governor of the Central Bank of Nigeria and Politician, Kingsley Moghalu stated that the last frontier was effectively a view of the continent as an extension of globalisation and a spread of wealth away from the traditional centres in Europe and North America. He suggested that Africa had caught the imagination of the world,

not as a basket case, but as part of the world where people can legitimately aspire to be prosperous, where there are opportunities, where business can be done, and good money made – “in short, a normal part of the world”. Africa has a rising consumer class and there is a huge shift in middle class growth, making for more people with spending power and creating huge opportunities for international trade. But only a few industries, and fewer companies, have the scale and ability to take advantage of such a mix of markets and such a blend of cultures. However, those with ambitions are reaping rewards, building brands with lasting impact, and driving loyalty across this last frontier. Nissan, one of the world’s largest automotive businesses - and part of the one of the world’s most powerful automotive organisations in the Renault-Nissan-Mitsubishi Alliance has been serving Africa and growing on the continent for decades. Both

small, inner-city cars and larger pick-up class vehicles have become hugely popular, with the brand recognised for reliability and quality. AFRICAN BUSINESS A recent reorganisation of the business in Africa means that the continent receives an even spread of attention as the automaker looks beyond the traditionally larger markets for further growth opportunities. As well as boosting its own prospects, the company is highly involved, alongside competitors, in the wider development of the auto industry across Africa. Mike Whitfield, Managing Director of the Nissan Africa Regional Business Unit, tells Enterprise Africa that the benefits of a thriving auto sector are clear for Africa, and Nissan intends to drive this development. “What we have created, as the only OEM in both north and south, is an African business unit that looks after 52 smaller markets as well as major

© Nissan

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NISSAN AFRICA

markets of South Africa and Egypt. We as an industry see Africa as the last automotive frontier. Today, there is a scenario where 1.3% of total global vehicle sales happen in Africa, but we have close to 17% of the total global population. If you look at Africa, you have 43 vehicles per 1000 against the global average of 182. Simply, there is huge opportunity in Africa.” In South Africa alone, where the industry enjoys a healthy position with many international operators, the impact on the economy is clear. 470,000 people are directly employed by the motor industry and three times that across the value chain. In 2019, 7.1% of GDP in South Africa came from automotive with R14.3 billion in exports. “It’s a massive part of the economy and when it is done properly it can really contribute,” states Whitfield. He cites the establishment of the African Continental Free Trade Area (AfCFTA) as a major win for business in Africa. Through this specialised strategic

framework, the automotive industry sector is able to localise value chains while providing benefits for African participants whatever area they are in. “There is huge opportunity,” he says, “but nothing will happen unless Africa works together to see how we can create inter-regional trade, and that links to the AfCFTA. Within that, automotive which is seen as a key industry to work on to help the industrialisation and manufacturing activities grow in Africa. Automotive has a significant value chain which creates skills and jobs and opportunities for participation in the economic sector that will grow. It requires cooperation and it must be complimentary but there is much progress being made around the value chain and rules of origin. As an industry, through the AAAM and the Secretariat of the AfCFTA and the Afreximbank and other stakeholders, we are working together to define the rules of origin and we are close to getting that finalised.”

Today, a significant portion of raw rubber comes from West Africa but “nowhere in West Africa is there a plant that manufactures tyre or wiper blades. The idea is to take the raw rubber and add value,” says Whitfield. Copper is mined in Zambia and Congo before ending up in China and being made into electric wire that goes into wiper motor before coming back to Africa to go into a final product, he explains, adding that “it is important that we understand the value chain and realise that by 2035, the market will be closer to four or five million vehicles and our objective is to have a big percentage of those vehicles built in Africa with components from Africa so that we can grow the manufacturing and industrialisation of the continent. Looking at India as an example, there is no reason why we can’t get there.” India’s population sits at around 1.4 billion people - much like Africa - and GDP per capita is roughly the same as the average in Africa, yet India

© Nissan

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produces and has a market close to 4.1 million vehicles per year compared to 1.2 million in Africa. For Nissan and Whitfield, taking advantage of the AfCFTA to create a positive balance of trade is a must for the industry in Africa. “Right now, the majority of Forex usage on the continent is going to buy vehicles and forms of transport that are made outside of the continent. We need to keep that inside of Africa as there are huge numbers of used vehicles coming into Africa that don’t meet safety or other standards - we all have to drive for safer mobility.” NAVARA LAUNCHED Nissan has grown its African presence significantly over the past decade. Initially opening up manufacturing operations in South Africa in 1961 (although Datsuns were imported through the 50s), the company has sold into all countries and boasts premier facilities in Rosslyn, Gauteng and 6th October Industrial City outside of Cairo (the only global OEM with a 100% owned investment in Egypt). Nissan also manages a semi-knocked-down (SKD) operation in Nigeria and is about to open a second SKD facility in Ghana. Recent coups for South African manufacturing include a deal to build the Nissan Navara – a light commercial utility pickup truck, popular in markets around the world. Local manufacturing,

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// WHAT WE HAVE CREATED, AS THE ONLY OEM IN BOTH NORTH AND SOUTH, IS AN AFRICAN BUSINESS UNIT THAT LOOKS AFTER 52 SMALLER MARKETS AS WELL AS MAJOR MARKETS OF SOUTH AFRICA AND EGYPT // which began in June 2021, has been hailed by the company as a product ‘built in Africa for Africa’. In February 2022, the African-made Navara arrived in Nigerian showrooms from the Rosslyn plant, which received R3 billion investment over the past three years. “Our all-new Nissan Navara, the best we have ever made, is literally built of more: it hasn’t just been tropicalised, it has a reinforced chassis, the suspension is different and the roll over angle is the best in the market,” said Nissan’s Sales Director for sub-Saharan Africa, Hide Kuwayama. “We manufacture the new Navara pick up and the NP200 for both South Africa and Africa. In the case of the Navara, it’s both left- and right-hand drive, single or double-cab. On site, we have around 2400 people daily, including all Nissan staff, sub-contractors, and service providers. We also operate into sub-Saharan Africa from Rosslyn, and we have around 116 independent dealers spread across South Africa. We also have independent national sales companies

operating through the rest of subSahara,” said Whitfield of the impressive Nissan Africa footprint. In April 2021, South Africa welcomed the Nissan Magnite – a compact SUV packed with features and designed to separate it from anything else in the segment. In January 2022, In Egypt, Nissan introduced the thirdgeneration Qashqai to its SUV range. As the first market in Africa to receive the all-new Qashqai, leaders in the Egyptian business were sure that state-of-the-art safety features, leading comfort and performance stats, and feature-packed design would be attractive. The pandemic slowed Nissan’s rollout pace across the continent, but the company countered by investing heavily in tech and digital solutions to prep for a future where customers demand more open communication channels between manufacturing, distribution, sales, and end user. NAME OF THE GAME: AGILITY “We have a great team, and it has created a lot of opportunities to take on African responsibility as opposed to just South Africa or Egypt,” says Whitfield. “We have two great Managing Directors for both of those units, and the reality was that with Covid we have all been faced with the same challenges. We have had to adapt very fast, and agility has been the name of the game. Covid is a reality and have to live with it going forward. We are certainly not going to work the same way we did before. Work from home is part of our overall strategy but that doesn’t mean everyone at home all the time. We like flexible working, and we mix and match working patterns.”


THE ALL NEW

NISSAN NAVARA


INDUSTRY FOCUS: AUTOMOTIVE

He adds that the main issues faced as a result of the pandemic surround supply chain and logistics, as well as protection of employee health. The company offered a vaccination drive among all employees, families, and locals, and continues to educate around importance of vaccines. With shipping costs rising, fuel pricing, and container availability heavily impacted, global companies have been forced to adapt. The semi-conductor crisis has also hit automakers hard, but Whitfield sees this as a short-term problem that will be rectified. “It makes it very difficult to forecast what you can build in the longer-term – we are living on a very short horizon with that. It will come right, but it will certainly take time before we start seeing that. “Having operated within Africa for so long,” he continues “we have always realised the need for agility. It is something that is a key attribute of the Nissan team as there are often changing political, economic and social environments. The volatility in exchange rates will remain, and Covid

© Nissan

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// HAVING OPERATED WITHIN AFRICA FOR SO LONG, WE HAVE ALWAYS REALISED THE NEED FOR AGILITY // has brought that to the fore, and that agility helps African businesses operate a lot better. We have had delays and there have been stock shortages, but we continue to manage within the parameters while being flexible going forward.” From a business and workflow point of view, the company has taken a focus on digital and is busy upgrading technology capabilities to ensure that it is prepared for a market that is embracing a new ‘shop from home’ culture. AMBITION 2030 At the end of 2021, Nissan unveiled its new company-wide vision, labelled Ambition 2030. Defining strategies around electrification, model development, battery power, and future mobility solutions, this plan was delivered by Nissan CEO Makoto

Uchida. Undoubtedly, Covid-19 has influenced the timescales and outlooks within Ambition 2030 but, ultimately, the company’s core purpose of enriching people’s lives remains. “The overall and core philosophy in the company is people. People have to come first, especially around safety and what we did was put together a task team across multiple areas to see how we could provide support during the pandemic,” says Whitfield. The launch of Ambition 2030, in line with the company’s aim to be carbon neutral across the lifecycle of its products by 2050, comes from the demands of people. People are on the hunt for brands that share values around the environment and sustainability, and transitioning to an electric future is key for Nissan. The reality of electrification of the automotive industry in Africa has


NISSAN AFRICA

often been questioned, but Whitfield – active in the company and industry for four decades – is certain progress will accelerate. “I don’t believe Africa will lead in electrification, but it will certainly follow. It is a global phenomenon and Africa will, without doubt, play a role. It cannot be part of the value chain going forward if we do not move in that direction. “A key issue is around the future of technology. For us, our long-term vision sees us moving to a more progressive future which looks at bringing a whole range of mobility together. There is a strong move towards electric and other technologies so we will see a mix of 50% electric across our brands with 23 new electric models coming to the market between now and 2030. We are going to be spending close to ¥2 trillion on this ambition and for us, that is our future, capitalising on change.” This message is reiterated in the company’s approach to its structure. Nissan has taken active steps in diversifying its employee base and leadership make up. The company has seen an increase in female management globally from 6.7% in 2008 to 13.9% in 2020 and is targeting further improvements by 2025. “I believe strongly in building a diversified team, not only in terms of gender and race, but also in attributes,” says Whitfield. “You can’t only build a team of optimists – you must have a balance. I am not in favour of a hierarchical organisation, and I believe everyone can contribute from wherever you are in an organisation. You have to create a

// IT IS A GLOBAL PHENOMENON AND AFRICA WILL, WITHOUT DOUBT, PLAY A ROLE //

Mike Whitfield, Chairman Nissan Africa South & Managing Director Nissan Egypt

belief that people can contribute so they feel enabled and empowered. Criticism must be constructive rather than destructive and one needs to create an environment that allows people to show their true potential as we will move forward to a system that sees people working together on a cross-functional basis. We see, as business develops, that the issue of cross-functionality and cross-cultural becomes critical. “When we established Nissan Africa,” he adds “we brought two very different cultures together from South Africa and Egypt. It has been interesting to see two cultures mix for a common purpose and you must have an openness so that people can have their say and challenge in a constructive way – transparency is critical.” With a seasoned, expert team in place to lead growth in Africa,

and a strategy that incorporates the entire continent, Nissan is targeting first-mover-advantage on the automotive last frontier. Introducing new technology faster, connecting with consumers smarter, and providing products that are top of class – manufactured in Africa through an African value chain – Nissan’s intentions to dominate on the continent are clear. For Whitfield, this is just the start of a very exciting journey. “What you do, you must enjoy doing. I’m happy with everything that we are doing and enthusiastic about future ambitions on the continent,” he concludes.

WWW.NISSAN.CO.ZA

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FORD SOUTH AFRICA

Global Auto Business Eyes

SA Opportunities PRODUCTION: Chris Wright

Ford remains one of the key international investors in South Africa. Its powerful local business is driving opportunities like no other in the country, and its products are revered as best-in-class. Upgrades at the Silverton Assembly Plant will see Ford manufacture world-class vehicles for local and export markets, much to the delight of the South African auto industry. 22 / www.enterprise-africa.net



INDUSTRY FOCUS: AUTOMOTIVE

//

South Africa’s government has promised to deliver massive foreign direct investment to drive employment opportunities, commercial activity, and ultimately GDP growth in a promising economy which has waned for almost a decade. President Ramaphosa was on the charm offensive in 2018, managing to drive huge increases in inflows and bring FDI to its highest level in five years. But, the subsequent years have thrown up unprecedented challenges and investment has slowed. In 2020, Ramaphosa urged African leaders to come together to attract investment to the continent as the African Continental Free Trade Area agreement came into play. And in 2021, he promised international investors that the country was committed to rooting out corruption while solving crippling power issues.

© Ford SA

24 / www.enterprise-africa.net

// RANGER IS ONE OF OUR HIGHEST VOLUME, MOST SUCCESSFUL GLOBAL VEHICLES. THIS INVESTMENT WILL EQUIP OUR TEAM WITH THE TOOLS AND FACILITIES TO DELIVER THE BEST FORD RANGER EVER, IN HIGHER NUMBERS AND WITH SUPERIOR QUALITY // Many companies listened, and big names including Microsoft, Johnson & Johnson, and Ford committed spend in South Africa. Ford’s venture is an important coup for the country which boasts a thriving automotive industry that contributes a major GDP component. The company announced in February 2021 that it would spend R15.8 billion upgrading its Silverton Assembly Plant in Tshwane. The goal of this investment is to boost production

capability and capacity, while creating new jobs. Excitement followed with this announcement marking the largest investment by Ford in its 99 years in South Africa – one of the largest investments in the history of the country’s auto industry. Highlighting the scale and importance of the investment, the Ford Silverton Assembly Plant said it would expect to generate revenues of more than 1.1% of South Africa’s GDP. The expansion allows for an extra 32,000 vehicles to roll off the


FORD SOUTH AFRICA

© GCIS: President Ramaphosa addressing the Ford Motor Company of Southern Africa’s investment ceremony.

//THIS IS A BOLD AND PIONEERING STEP THAT WILL TRANSFORM OUR BUSINESS, HELPING US MAKE AN IMPORTANT CONTRIBUTION TO REDUCE OUR IMPACT ON THE ENVIRONMENT // plant, and drives production of the all-new Ford Ranger and VW pickups. From Tshwane, the Ford Ranger will head for 100 global markets and will also hit South African roads. 1200 direct new jobs will be created, along with 10,000 across the value chain and supplier network, including in companies like ElectroMechanica where innovation is plentiful. SILVERTON UPGRADES “This investment will further modernise our South African operations, helping them to play an even more important role in the

turnaround and growth of our global automotive operations, as well as our strategic alliance with Volkswagen,” said Dianne Craig, President, Ford’s International Markets Group. “Ranger is one of our highest volume, most successful global vehicles. This investment will equip our team with the tools and facilities to deliver the best Ford Ranger ever, in higher numbers and with superior quality.” At the Silverton Plant, a new body shop with the latest robotic technology and a new high-tech stamping plant have been installed onsite to allow for streamlining of the

integrated manufacturing process. Thorough upgrades were also made to the box line, paint shop, and final assembly to improve vehicle flow within the plant. The container and vehicle yards were also expanded. “The extensive upgrades and new state-of-the-art manufacturing technologies will drive efficiencies across our entire South Africa operation – from sequenced delivery of parts direct to the assembly line, to increased vehicle production line speeds and precision of assembly to ensure the world-class quality that our customers expect,” said Andrea Cavallaro, director of Operations, Ford’s International Markets Group. This investment is furthered by ongoing upgrades and enhancements across the Ford South Africa ecosystem, including wholly owned facilities as well as supplier sites. Ockert Berry, Vice President,

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INDUSTRY FOCUS: AUTOMOTIVE

© Ford SA: Solar Energy Project

Operations, for Ford Motor Company of Southern Africa said that the economic impact of the company’s projects is invaluable. “As part of our extensive investment in the Silverton plant, we also are building a new Fordowned and operated chassis line in the Tshwane Automotive Special Economic Zone (TASEZ) for this new vehicle programme. “Having this new line and our major component suppliers located adjacent to the Silverton plant in the TASEZ is key to expanding our production capacity, as parts will be sequenced directly onto the assembly line. This will significantly reduce logistics costs and complexity, improve efficiency and allow us to build more Rangers for our customers,” he said. Managing Director, Neale Hill added: “Ford’s investment in our South Africa manufacturing operations underscores our ongoing commitment to deliver ever-better

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vehicles to our customers in South Africa and around the world, while providing opportunities for our own employees, new team members and our communities.” PROJECT BLUE OVAL The Silverton site, located east of Pretoria, received significant investment just 12 months earlier when Ford announced it would embark on a solar energy project, designed to take the entire manufacturing operation off the Eskom grid – one of the first Ford plants globally to achieve such status. “Our aim is to achieve ‘Island Mode’,” says Cavallaro “taking the Silverton Assembly Plant completely off the grid, becoming entirely energy self-sufficient and carbon neutral by 2024.” Labelled Project Blue Oval, this plan – in collaboration with SolarAfrica – when complete, will see the company’s site covered in 31,000 locally sourced solar panels. The

// OUR GOAL BY 2024, IS TO HAVE THE SILVERTON PLANT COMPLETELY ENERGY SELF-SUFFICIENT AND 100% CARBON NEUTRAL // installation provides 13.5MW of green energy and has been estimated at R135 million. “Ford Motor Company has launched clear objectives to address climate change, which compel us to change our behaviour in profound and lasting ways,” said Cavallaro of this visionary approach to challenging power issues in South Africa head on. “As stated in our 2020 Sustainability Report, Ford is the only full-line automaker in the US committed to doing its part to reduce CO2 emissions in line with


FORD SOUTH AFRICA

the Paris Climate Agreement, and we are working towards stronger vehicle greenhouse standards to reduce our impact on the environment. “An integral part of building highquality vehicles in an environmentally and socially responsible way is reducing the impact of our operations and supply chains through world-class facilities, innovative manufacturing processes and the most sustainable materials,” he adds. “Renewable energy is at the centre of this focused plan to reduce and ultimately eliminate our reliance on fossil fuels while lowering and offsetting the production of CO2 emissions.” Globally, Ford has the goal of carbon neutrality by 2050 and aims for 100% locally-sourced renewable energy as a benchmark by 2035. Project Blue Oval is a key demonstration for what is possible around the world, and regional Ford divisions are watching on closely. Ockert Berry is excited and proud of what is going to be achieved in South Africa. “Our goal by 2024,” he says “is to have the Silverton plant completely energy self-sufficient and 100% carbon neutral, using an integrated renewable and cogeneration energy mix comprising solar PV, biomass, biogas and biosyngas for all our electricity, gas and heating requirements. We will also be introducing 100% water recycling, and all non-fermentable waste will be repurposed through a pyrolysis system to produce syngas. “This is a bold and pioneering step that will transform our business, helping us make an important contribution to reduce our impact on the environment,” Berry adds. “It will also make our Silverton Assembly Plant both more efficient and more cost-competitive.” David Sonnenberg, Chief Technical Officer of SolarAfrica and Project Blue Oval provided further context on the Ford decision. “As we are all too well aware, South Africa is

MAKING CONNECTIONS POWERING TOMORROW ElectroMechanica, a proudly South African family-owned business founded in 1984, partners with leading global manufacturers to exclusively distribute innovative technologies in industrial automation, power distribution and energy management into the industrial and commercial sectors. EM has a vast portfolio of automation technologies providing innovative and simple solutions for monitoring and control applications. Visit www.em.co.za to find out more

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INDUSTRY FOCUS: AUTOMOTIVE

currently faced with a crippling energy crisis, coupled with the ongoing threat of load shedding, ever-increasing electricity tariffs, municipal shortage of capacity, demand charges on power, and the erratic quality of this power delivery with regard to spikes and dips,” he says. “For a global manufacturing operation such as Ford’s Silverton Assembly Plant, these challenges make running a facility of this scale efficiently exceptionally difficult – both in terms of the availability of reliable energy, and escalating costs. “An added challenge is that most of South Africa’s electricity is generated through fossil fuels, and specifically from coal-fired power stations. The high level of greenhouse gases generated exacerbates the

environmental damage and resulting climate change. “Along with Ford, we share the vision of a zero-emission future, and we welcome Ford’s enthusiasm and passion in launching the solar energy project, and working towards the broader green initiatives in the future.” David McDonald, MD of SolarAfrica reiterated importance and excitement of being involved in such a project. “We are delighted and proud to have been selected as the solar provider for this pioneering project, and developing what will be one of the largest solar carports in the world,” he said. “It has been a pleasure working with such a progressive team, and Ford’s commitment to reducing its carbon footprint and willingness to adopt change has been refreshing.”

RANGER & EVEREST Away from major investments that will alter the company’s future, Ford has been busy on the ground in South Africa, launching its new Ford Approved used car retail model. 94 dealerships with 1800 vehicles listed for sale are being marketed through a new website, delivered with a comprehensive 160-point presales checking process, and a 12 month roadside assistance package. With the pandemic putting pressure on spending ability, the Ford Approved programme has been extremely useful for those in the market for cheaper options with great quality. The company says that Ford Approved customers will receive the same level of quality and professionalism that they would get when buying a new car.

// FORD MOTOR COMPANY HAS LAUNCHED CLEAR OBJECTIVES TO ADDRESS CLIMATE CHANGE, WHICH COMPEL US TO CHANGE OUR BEHAVIOUR IN PROFOUND AND LASTING WAYS //

© Ford SA: SA Ford-Silverton Assembly Plant Upgrades

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FORD SOUTH AFRICA

In the SUV market, the Ranger and the Ranger Raptor were joined in South Africa by the brand-new Ford Everest this year. The exciting new model is reportedly being touted as a serious competitor to segment leader, the Toyota Fortuner. With new styling, which seems to be linked to the design of the worldfamous Ford F-150, the Everest also

boasts a brand-new infotainment system. It will be driven by 2.0 and 3.0 diesel engines, and a 2.3 EcoBoost in limited markets. The Ranger Raptor has been launched with much fanfare as those looking for power have been satisfied. A 3.0 twin turbo petrol V6 delivers an 85% increase in power model-on-model. Petrol heads will

explain that this power boost brings Ford Focus ST acceleration levels to the double-cab bakkie market, appeasing those who criticised the Raptor for lack of overtaking capability at cruising speed. With new models, new capabilities, new facilities, and new customers coming to the market, now is a great time for Ford in South Africa as it vies for top spot with the other big name international automakers. Fortunately for the Blue Oval, rivals are not investing in the country in the long-term the same was it is. With localisation, sustainability, and quality at the centre of its plans, Ford is proving what can be achieved by a multinational in Africa when real investments are made.

WWW.FORD.CO.ZA

© Ford SA

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ELECTROMECHANICA

Driving Industry

Best Practice PRODUCTION: ElectroMechanica

ElectroMechanica, specialist provider of electrical switchgear and solutions for automation and energy management, plays major role in upgrade of impressive Ford Silverton Assembly plant. www.enterprise-africa.net / 31


INDUSTRY FOCUS: AUTOMOTIVE

//

The Ford Ranger has been around for almost four decades and has become the mainstay amongst vehicles for work and pleasure. Built Tough to Live the Ranger Life, the Ford Ranger is among the top three bestselling bakkies in South Africa and the second most exported vehicle in its category. The Silverton Assembly plant in South Africa is one of Ford’s global production facilities, geared to manufacture Ford’s iconic Ranger, where two thirds of the Rangers produced are for export. In 2021 Ford strategically invested into the company’s production capabilities, in preparation for the launch of the next-generation Ranger. With almost double the capacity of the production from 2011, the Silverton plant would now be able to manufacture up to 720 vehicles a day, equating to one

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// THE EXTENSIVE UPGRADES AND NEW STATEOF-THE-ART MANUFACTURING TECHNOLOGIES WILL DRIVE EFFICIENCIES ACROSS OUR ENTIRE SOUTH AFRICA OPERATION // new Ranger every two minutes. ElectroMechanica in partnership and through its channel partner Electrahertz, had the privilege of contributing to the major upgrade of the Ford Silverton Assembly plant. To increase efficiency and productivity, whilst adhering to the safety standards, a solution to optimise the fan applications for air supply to the plant was implemented. Fans in industrial applications are critical for process support and human health. In the manufacturing sector, fans use about 78.7 billion kilowatt-hours of energy each year.

This consumption represents 15% of the electricity used by motors. If the filter across the air supply fans becomes dirty or blocked, the motor has to work harder to supply more air, and hence more energy is needed. To help Ford increase the efficiency of the fans, the Delta range of PLCs (Programmable Logic Controller), VFDs (Variable Frequency Drives) and HMIs (Human-Machine Interface) were utilised. The system was used to control and optimise the air supply to the plant. Using the Delta PLC to control the system, and continuously monitor the state of the field measurement devices, important decisions related to the functioning and performance of the output devices could be achieved. Differential pressure sensors were installed to measure the pressure across the fan filters. An increase in the differential pressure would indicate a blocked or dirty filter. The PLC would then adjust the output to the VFD, which could then increase the air supply and adjust itself to compensate for the dirty filter. All information related to the process, including alerts and alarms was visualised on the HMI. The touch screen HMI displays were all mounted in a customised panel built, tested and commissioned by Electrahertz. The interactive platform of the panel solutions enabled operators to manage the plant operations more efficiently. The panels were fitted with E-stop safety switches, to stop the fans in case of an emergency, as well as reset push buttons to easily restart operations of the fans, and lastly signal towers were used to attract the attention of the operators should


ELECTROMECHANICA

there be a change in operations that require attention or a safety concern that may arise. All components of the Panel solution, including the Delta PLCs, VFDs and HMIs were supplied by ElectroMechanica. The global semi-conductor shortage as well as the impact of the Covid-19 pandemic on freight and cargo into South Africa was no challenge for ElectroMechanica. With sixteen distribution hubs and over 24,500 m2 of stocked warehouses, ElectroMechanica was able to meet the demands of the Silverton project timelines set by Ford. Andrea Cavallaro, Director of Operations for Ford’s International Markets Group was quoted by Ford media stating: “The extensive upgrades and new state-of-the-art manufacturing technologies will drive

efficiencies across our entire South Africa operation – from sequenced delivery of parts direct to the assembly line, to increased vehicle production line speeds and precision of assembly to ensure the world-class quality that our customers expect.” ElectroMechanica together with Electrahertz was privileged to help Ford achieve its new production targets at the Silverton plant, in line with worldclass manufacturing standards. Being a proudly South African company, ElectroMechanica is committed to the upliftment of South Africa and remains totally committed to the founding principle of supplying Africa with worldleading, high-quality products. ElectroMechanica has an established network and reputable distribution partners across Southern

Africa, making it possible to service the industrial and manufacturing sectors for almost four decades. ElectroMechanica is proud of its long standing partnership with Electrahertz for over 30 years. Founder Dave van den Berg has played an integral role in growing a company that embraces new technology and pushes the boundaries of industry best practices, helping manufacturing companies to improve their processes and production capabilities in a sustainable manner.

WWW.EM.CO.ZA

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BROLL PROPERTY GROUP

Broll’s Strategic Shift for Core

Growth and Innovation PRODUCTION: Christina Allcock

Broll Property Group was already driving a progressive new strategy when the pandemic hit. This accelerated its roll out, but the company has also continued to focus on growth and innovation, even in the toughest of conditions. Jess Cleland, Broll COO: Africa tells Enterprise Africa more about new offerings and trends from the continent’s leading real estate services provider. 34 / www.enterprise-africa.net



INDUSTRY FOCUS: PROPERTY

//

The past five years has seen Broll – one of Africa’s leading commercial property services groups - actively seeking new opportunities, sourcing growth strategies beyond the traditional, and focusing on IT capability while it became ever closer to clients in a bid to provide a turnkey solution as a true problem solver. Today, looking forward to the next five years, Jess Cleland, Broll’s COO for Africa, tells Enterprise Africa that despite challenging market conditions and a change in workplace dynamics, the company is continuing to push for growth through new solutions, innovative offerings, and world-class service for clients as it helps to navigate a changing property market. “There are so many opportunities out there,” says Cleland on the vast area covered by Broll across Africa. “One has to shift away from this idea that investment property is only retail, office, industrial, and residential assets,” she warns. “Now, especially in Africa, real opportunities lie in segments of the market where there is the greatest socio-economic need – property that meets a social need – services that a government would normally provide but where they might not have been able to keep up with demand. I’m

// WE WERE WORKING TOWARDS A BRANDNEW CORE STRATEGY AND A FIVE-YEAR VISION FOR THE GROUP IN TERMS OF WHERE WE WANT TO GO, WHO WE WANT TO BE, AND WITH WHOM WE WANT TO PARTNER // 36 / www.enterprise-africa.net

// HAVING TRUE TRANSPARENCY, EVERYTHING SYSTEMISED, AND ALL OF YOUR ACCOUNTING AT YOUR FINGERTIPS, BRINGS GREAT BENEFITS AND EFFICIENCIES // talking about things like healthcare, education, infrastructure, affordable housing, student accommodation, data centres – those segments of the market, because of the pure supply versus demand, are where we will see real growth in the next 10 years.” Broll has been delivering a wide service portfolio - including sales, leasing, facilities management, occupier services, property management, valuations, research, and much more - since its establishment more than four decades ago. For CEO Malcom Horne, rich market knowledge is helping to differentiate the business. “Our success is built on our in-depth knowledge and expertise, based on our tangible understanding of local markets across Africa. This allows us to provide endto-end real estate solutions based on strategic, fully-integrated property services for both the occupier and investor segments,” he says. With more than 2000 employees active across 13 African countries, and $17 billion total assets under management, this 51% black female owned business is perfectly positioned to guide clients across the continent, even as it shifts internally. KEY SHIFT “The beginning of 2020 was a key moment and a key shift for Broll,” explains Cleland. “It quite serendipitously coincided with start of Covid, but it is something we were working on anyway. We were focusing ourselves with a brand-new core strategy and a five-year vision for the group in terms of where we want to go, who we want to be, and with whom we want to partner. It’s about concentrating on our core strengths and core abilities.”

This new strategy is people focused, centred around partners, clients, and employees. It aims to bring the company and clients closer together through new offerings driven by matching the needs of clients with the innovation of Broll people. “We are investing in and scaling our own Broll Online Software, positioning that in the market to maximise how it can benefit the real estate service industry across the entire continent. We are also focusing on our strengths while being ambitious,” states Cleland, adding that the company did not slowdown during the Covid-19 and resultant economic contraction. “We did launch new businesses in some new areas. For example, we now have Broll Risk Management service which manages security issues and provides market entry advice for companies moving into new geographies. We launched ID (Internal Developers), which is interior workplace strategy and consulting, including fit out projects. We also launched BSS (Business Solutions Specialists) which is a subprovision of facilities management solutions. The last year or two has really been all about focusing the energy of the business in conjunction with a new structure in the leadership team – putting the business into clusters, each with their own COO, which results in sensibly grouped divisions and empowers tighter collaboration.” This renewed focus, and display of ambition, has driven a new energy internally and, according to Cleland, sees everyone now clearly pulling in the same direction. “It’s about taking a more considered approach about where we want to focus. Obviously, for the first year or so, the focus was primarily on


Your One-Stop Security Shop G4S Nigeria is one of the leading security companies in the country and has been operating since 2005, headquartered in Lagos with a presence in (name states) and keen to expand into the remaining states in order to provide the security and stability required to support the economic growth of Nigeria. As part of the franchise agreement with G4S, G4S Nigeria benefits from access to global expertise, best practice and cutting edge technology, enabling us to provide bespoke and quality integrated security solutions, whilst ensuring our customer partnerships delivers the utmost return for their investments. We currently have 3500 personnel working for over (number of customers) customers, including major corporate organizations, like IHS, Huawei, British American Tobacco, British Airways, Seven Energy, Dangote Group, APM Terminals and Honeywell. We deliver a ‘one stop security shop’ for a wide range of business outsourcing services that are fully compliant with global best practice based on G4S worldwide standards.Our portfolio of integrated security solutions includes the following: • •

Manned Security Secure Transportation

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Electronic Security systems Vehicle Tracking

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Outsourcing & Support Event Security Management

We also offer our bespoke technology, G4S Risk 360, an end-to-end security, risk, and technology information management platform that provides five main elements at no extra cost. They are as follows; •

Security Management Dashboard

Incident and status report consolidation into an online occurrence book

Integrating multiple intrusion and monitoring sensors at remote sites

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Our global reach provides us with a strong understanding and clear visibility of how security trends are evolving around the world and we continue to invest in technology to meet the growing demand for integrated security solutions and to drive the development of innovative solutions for customers. Abayomi Lawal: +234 98 744 0278 abayomi.lawal@ng.g4s.com

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Securing Your World www.g4s.com/en-ng | 6 Adekunle Fajuyi way, GRA, Ikeja, Lagos state, Nigeria


INDUSTRY FOCUS: PROPERTY

getting through Covid and navigating rapidly changing markets, but we have certainly not slowed down at all,” she says. New offerings are being delivered where they are most suited and not in a blanket approach to the continent. The risk management business is focused on African projects, with a lot of interest in Mozambique and Uganda. ID has worked on projects across the continent with notable success in Kenya where it completed a major multinational head office fit out last year. COVID CLARITY For property owners and those in the market – all over the continent – the pandemic brought challenges that required unique responses. Different restrictions, different vaccination policies, and different support packages from government. Businesses were forced to reassess the cost base, and for some, property was the first element to be axed as times got hard. A complete reimagination has taken place since,

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and the African workplace is no longer standard or predictable. Thankfully, Broll is an expert in transition and upscaling or downscaling of requirements. “Throughout this period we have seen ups and downs, of course,” admits Cleland. “But on the commercial side, a number of corporates didn’t just jump into decisions. They wanted to see where things were going and assess the needs of their workforce. We are now starting to see decisions being made, which provides certainty. There have been some space reductions but in some cases there have instead been reconfigurations of space. We have seen a lot of assets come onto the market in the last 18 months. For a long time, there was a gap between what the sellers were expecting compared with what buyers were looking for, and so there was not a lot moving and we needed something to bring those closer together. Now that we are seeing borders reopen and people traveling to view properties, we are seeing things happen again. The inertia of the past couple of years is lifting.”

Already well-positioned to run its own operations on a remote basis, Broll was able to help clients through an unprecedented period, with most coming out in a strong position. Thanks to the forward-thinking Broll risk team, the company had tested remote working prior to lockdowns and closures. With operational efficiency unaffected, and client management ongoing successfully, Broll entered the ‘new normal’ in pole position. “The success of that is partly down to the system we use – the same system we use to service our clients: Broll Online,” hails Cleland. “That captures everything related to the management of our client’s portfolios from their leases and call logging through to accounting and finance, both for clients and our business. It’s all cloud-based with an app that can be accessed from anywhere and so everything had already been set up for us to transition to this new world of ‘do anything from anywhere’. So, for us, it was quite painless and we are


BROLL PROPERTY GROUP

seeing clients across the continent also enjoying the benefits of that sort of approach. “Having true transparency, everything systemised, and all of your accounting at your fingertips, brings great benefits and efficiencies,” she adds.

// WE HAVE SOME REALLY EXCELLENT PEOPLE IN THIS BUSINESS AND WE WANT TO GIVE THEM EVERYTHING WE CAN TO ALLOW THEM TO SUCCEED //

ON TOP OF TRENDS The purpose of Broll is to be the leading real estate services provider and the preferred place of employment for industry professionals. To achieve this mammoth task requires continued innovation and value add. The selfproclaimed ‘Progressive Property People’ manage such a range of clients that keeping fingers on the pulse is vital. “We manage the portfolios of some of the largest multinational investors and corporates in Africa,” states Cleland. “At the same time, a lot of African markets are not characterised by large, professionallymanaged, listed funds; they might be local family owned or a single asset business – we cover everything.” But covering everything is not easy. With 33,000 tenants and 19,000 leases being managed, 43m m2 of

space under management, and $2.5 billion under facilities management, insight developed by Broll through relationships with its clients helps the company to build strategies and advise clients ahead of the curve. Right now, there is huge potential for local businesses to grow. “It’s different by sector and different by country, and there are also different segments within each sector. For example, office space within a certain band might see a lot of stock moving but outside of that band things might be slower. In Ghana, we are seeing quite a lot of transactions go through, especially in sales, in certain residential slices of the market. We have been very successful with commercial leasing in Uganda. The face of retail in Africa is also changing. Over the past couple of decades,

Jess Cleland is responsible for all of Broll’s African businesses (excluding South Africa), including the teams which supports these businesses, as well as the valuations and intel divisions. A dual Australian and Canadian, who spent 12 years in Johannesburg and is now based in Mauritius, Cleland has been with Broll in Africa almost a decade. “There are three sides to my background which help me in my role. The first is having an understanding of property as a physical asset – my mechanical engineering degree has provided me with that (one of my first jobs was designing air conditioning services). Understanding the investment aspect of property is also vital, and I have a Master’s Degree in that as well as nine years’ experience with MSCI where I ended up as Director of Research, purely focused on researching the investment aspects of property. The third is in understanding businesses and how they work, for which my MBA completes the circle. “I’ve been with Broll for nine years and one of the things that impresses me about the company is how it is entirely normal to have women in leadership positions – at all levels. The balance of our board, exco and divisional heads is testament to that. It is something that I like to try and perpetuate, so that by holding a position I can try to help light the pathway for younger female professionals, if that is a similar pathway they would like to follow.” In 2018, Cleland travelled 3000km across West Africa, from Senegal to Ghana, on a mountain bike while raising funds for an animal rescue charity. She is currently training to take on the toughest mountain bike race in the world – the Absa Cape Epic – next year, again with the aim of fundraising for the same animal rescue charity.

MEET JESS CLELAND, COO: BROLL AFRICA

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INDUSTRY FOCUS: PROPERTY

// THE FACE OF RETAIL IN AFRICA IS CHANGING // we have seen the formalised retail market largely underpinned by South African retailers, and the shift that was starting to happen pre-Covid was accelerated strongly by several South African retailers moving out of other African markets. The composition of retail has adapted and changed slightly, with a stronger portion of local tenants, supplemented by international retailers mainly from Europe and the Middle East. So, we see a great opportunity for the building of local businesses in each of these markets,” Cleland explains.

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Other notable trends emerging in the market include a significant focus on logistics space, warehouse space, distribution centres, and particularly heavy attention on data centres as the continent drives connectivity as part of the continued digitisation of economies. “E-commerce is taking off across the continent, and each country is at a different stage of the growth pathway. For example, at the start of lockdowns, Mauritius did not really have a major online shopping capability, and then suddenly we started seeing a lot of enquiries for warehouse and logistics space. In Kenya, which by contrast was already much further advanced in its take-up of digital services, we saw stronger interest for data centre capacity.

“There is certainly a lot more interest in African data centres and a lot of international players are looking at the growth that Africa will provide over the next two decades,” confirms Cleland. Importantly, Broll has a commitment to its clients that goes beyond profit. It stands ready to advise whatever the scenario, building lasting relationships. If a client requires a temporary downsizing, even to the detriment of Broll, it is ready to assist to ensure the best outcome. Cleland is proud of this company-wide ethos towards building relationships for the long term. “We have an arm dedicated to working alongside corporates, focused purely on their interests, separated from the landlord. Strategic


BROLL PROPERTY GROUP

consulting is important, and we look at work patterns, what sort of space is required, where should the space be, how it should be configured – we can do everything including going to the detail of calculating how long it will take your staff to drive to work for different office scenarios. Being able to source space and handle all negotiations on a corporate’s behalf is a very important part of our business.” A longer-standing trend in the market is the growth of mixed-use developments. In South Africa, this concept has become popular, and the continent is realising the opportunities for property that has multiple uses, combining different lifestyle elements. “I can’t think of many new developments in east Africa in recent times that don’t have some sort of medical clinic included, for example,” says Cleland. “It requires partnership, as each of the elements are so different in how they are operated and designed, so you need specialist knowledge. Having education sitting alongside retail and residential is so complementary and this is the philosophy of where we are moving. With the remote/hybrid work, there will still be centralised commercial hubs but there will be a larger focus on providing decentralised services to

// THERE ARE SO MANY OPPORTUNITIES OUT THERE. ONE HAS TO SHIFT AWAY FROM THIS IDEA THAT INVESTMENT PROPERTY IS MERELY RETAIL, OFFICE, INDUSTRIAL, AND RESIDENTIAL //

Olki ElEctrOmEchanical nig. ltd Services we provide: • • • • •

Construction Supply Installation Maintenance Hiring/Liasing

• • • • •

Electrical Power Mechanical Power Instrumentation Control Facility management

phone: 08029091768 | 08033069064 www.olkielectromechanical.com.ng olkielectromechanical@yahoo.co.uk

bring work, live, play and learn closer to each other.” The success of Broll’s service delivery, and the quality of its offering to the market – helping to understand trends and act appropriately – was rewarded in both 2020 and 2021 when the company was awarded a prestigious Golden Arrow Award from PMR.africa for its Facilities Management range. Malcolm Horne paid tribute to Broll’s people, saying: “I wish to congratulate our Facility Management teams for always innovating and adding value to our client-centric service approach.” Cleland reiterated the company’s commitment to its people and their development. “We have some really excellent people in this business and we want to give them everything we can to allow

them to succeed. My philosophy is always to give people the opportunity, the tools they need to succeed, and the support to get there, and see where they go – it is very rewarding for everyone,” she concludes. Clearly, over the past six years, Broll’s appetite has not been dampened. Operating through some of the most challenging economic conditions ever, the company has always delivered – both for clients and employees. With results being achieved across the continent, and expertise being nurtured within, this is a company that will continue to find and develop opportunities.

WWW.BROLL.COM

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ATTACQ

Architect of

Development and Progress PRODUCTION: Timothy Reeder

One of South Africa’s premier property companies, Attacq’s forwardthinking approach has made it responsible for some of the major projects in the country in recent years. While constantly adding to its portfolio with a raft of flagship developments and expansions, Attacq is repeatedly recording robust financial and operational performances along the way. 42 / www.enterprise-africa.net



INDUSTRY FOCUS: PROPERTY

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Attacq is firmly positioned as one of South Africa’s preeminent Real Estate Investment Trusts (REITs), supported by one of the most comprehensive and diverse real estate portfolios in the country worth over R28 billion in total asset value. “Attacq creates safe, sustainable spaces where people can connect, unwind and thrive,” the company condenses, “and delivers exceptional and sustainable growth through its real estate investments and its developments in Waterfall City, Waterfall Logistics Hub and retail precincts.” Targeting exceptional and sustainable growth, Attacq has

accumulated a high-quality and diverse South African property portfolio that takes in the retail, hotel, office, mixed-use and light industrial sectors. “Attacq has a geographically diverse portfolio with property investments and developments in South Africa, retail investments in the rest of Africa and a strategic investment in MAS, which has a presence in Central and Eastern Europe.” FLAGSHIP VANTAGE CAMPUS To date, the obvious standout within the enviable Attacq armoury has been the immense Waterfall City and Logistics Hub, the signature

mixed-use development set in an unparalleled location between Pretoria and Johannesburg in Gauteng, South Africa’s commercial centre. “The Waterfall development consists of Waterfall City, an integrated city that works, alongside Waterfall Logistics Hub; this is Gauteng’s logistics hub of choice, and includes light industrial and warehousing,” the company explains. “It is a truly connected hub, a fully-integrated lifestyle which offers a complete work-life package and features everything you would expect in a vibrant, modern destination.” Continues on page 49

// ATTACQ IS WORKING WITH VANTAGE TO BUILD A CAMPUS THAT IS TAILORED TO MEET THE ORGANISATION’S GLOBAL REQUIREMENTS //

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Ellipse: An iconic high-rise residential development that surpasses any other in South Africa, in terms of luxury living, architectural beauty, and environmental advancements in the heart of Waterfall City, made up of four gleaming towers namely Galileo, Cassini, Newton and Kepler. 85% of the 600 apartments are sold across the current three towers. The final phase - The Galileo - launches mid-2022 with just 145 units remaining. Stock includes Exec one-, two-, and three-bedroom apartments as well as penthouses, and all residents can enjoy the top floor bar in the Galileo tower. Pick your apartment today. Register for the launch of The Galileo online, your new home in Waterfall City: www.ellipsewaterfall.co.za

THE VIEW IS NOT AN OPTIONAL EXTRA

THE NEW JEWEL IN THE CROWN AT WATERFALL CITY




MAXIFLEX: DEVELOPER’S TRUSTED PARTNER FOR QUALITY Maxiflex supports clients with modern, strong, sophisticated door and loading dock solutions that allow companies to focus on their core business, providing the best possible service to customers all over Southern Africa. Maxiflex, a leading industrial door and loading dock equipment company, is trusted by some of South Africa’s largest organisations to specify and install the correct entrance and loading dock solutions for their facilities. Established in 1990, this quality-focussed business ensures safety, security, efficiency, and productivity, offering professional advice, quality installation, and ongoing service and maintenance. Partnering with property developers and owners, including Attacq, Maxiflex has demonstrated its capabilities country-wide with branches in Johannesburg, Cape Town, Durban, and Gqeberha (Port Elizabeth), as well as successful projects completed across sub-Saharan Africa in Lesotho, Botswana, Mozambique, Namibia, Angola, Kenya, DRC, Zambia and Tanzania Whether it’s a blue-chip company, local business, warehouse, factory, store front, manufacturing facility, mine, or any other business or operation, there is much to consider when choosing entrance solutions for a business. Thankfully, Maxiflex offers world-leading products and boasts more than three decades experience, delivering a professional, friendly, family approach to relationships. Having recently completed successful projects for big-name clients in Johannesburg, Simon’s Town, Durban, Midrand, Gqeberha and Nelpruit, Maxiflex’s attention is now shifting to future projects as its 2022 pipeline grows. “Maxiflex supplied and installed the ASSA ABLOY range of sectional doors for the Deloitte River Creek building and we are also very proud to be the appointed supplier and installer of the 105 Teckentrup fire protection doors and complete loading bays from ASSA ABLOY for the Vantage Data Centre, which is one of the Attacq newest developments,” details Director Bram Janssen. “Maxiflex is the sole distributor for these high-quality European brands and we hope that the Vantage project will be a great success and that Maxiflex will be the preferred partner for entrance solutions for many more of Attacq’s future projects.” Right now, the company is also busy with multiple projects of scale for clients around the country. These include ASSA ABLOY Megadoors for Sishen Iron Ore; full turnkey entrance solutions with high-speed doors, sectional doors, and complete loading bays for MEGA Fresh Produce Market in Nelspruit; additional loading bays and sectional doors the DSV Logistics Park in Kempton Park; and 45 ASSA ABLOY high speed doors for Kerry Ingredients in KZN amongst others. The reason the company is in such high demand is its reliability and workmanship. Technicians are continuously trained, confident and able to perform any service, repair or upgrade required on any of the products in the range. Brands installed include inhouse-designed products as well as tough, enduring offerings from ASSA ABLOY Entrance Systems, and Teckentrup Door Solutions – no job is too big. The primary concern for this expert business is around quality of product and service, and by keeping this at the forefront of its provision, Maxiflex has grown consistently over three decades. “Maxiflex prides itself in offering quality entrance solutions for any industry. Our turnkey industrial entrance solutions meet a multitude of applications across diverse industries - from automotive manufacturing and mining to food and beverage, refrigeration, hospitality and pharmaceutical. We are adaptable, reliable and create solutions that enable us to develop trusted long-term client relationships,” says Janssen. Beyond high-quality products, amazing service, and lasting mutually beneficial relationships, Maxiflex brings an intangible element to the projects and clients with which it is involved. Customers can trust that Maxiflex can deliver a huge range of products within agreed timescales and completing work to the highest standard. “We strive to instil this passion and sense of pride in our staff, a mindset that rubs off onto our customers. Our 30-year presence in the industry gives our customers confidence in the quality of our product and service offering for complete peace-of-mind,” says Janssen. With some of the biggest names in all spheres of business putting faith in a Maxiflex solution, it is certain that this business can grow further, opening new avenues for clients, and locking in a brand reputation as one of the best.

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ATTACQ

Continued from page 44 Now Vantage Data Centers, itself behind the design, development and operation of some of the world’s most flexible and scalable data centres, has announced its plans to invest over R15 billion in its first‐ever African campus. This expansion into the continent will take the form of a flagship Johannesburg site within Waterfall City, in the heart of Africa’s largest data centre market. “The 80MW campus will help foster economic growth, stimulate job creation and lead the way in energy‐ efficient design,” Attacq assesses. A data centre is a dedicated space for servers and IT equipment, and Vantage is a leading global provider of hyperscale campuses, which amplify this to comprise in some instances hundreds of thousands of servers. Vantage’s carrier‐neutral Johannesburg location will include 60,000 square metres of data space across three facilities once

fully developed, to position it as the largest on the continent. “Johannesburg is the data centre hub for sub‐Saharan Africa due to its strategic location, IT ecosystem, fibre connectivity to the rest of Africa and the availability of renewable energy,” enthuses Antoine Boniface, Vantage EMEA President, who recognises the potentially huge wider impact of an African campus in creating a cost‐effective digital infrastructure solution for myriad fintech companies and local businesses. “With a scalable, fit‐for‐future logistics hub and a world‐class corporate campus, Waterfall City has an established track record of attracting leading international businesses such as BMW, PwC, Massbuild, Cotton On and Cummins to the precinct,” Attacq CEO Jackie van Niekerk reveals. “Attacq is working with Vantage to build a campus that is tailored to meet the organisation’s global requirements while still leveraging Waterfall’s

// ATTACQ CREATES SAFE, SUSTAINABLE SPACES WHERE PEOPLE CAN CONNECT, UNWIND AND THRIVE // unique capacity to scale its tenant footprints according to evolving company and market demand.” ANYTHING BUT MIXED RESULTS Attacq has also seen real success with Waterfall’s latest high-rise residential development, The Mix Waterfall, which is approaching sales of R200 million attributed to buyers originating from South Africa, Botswana, Dubai and Zimbabwe. These numbers are made all the more remarkable considering its launch date of July last year, during the height of one of the most destructive

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INDUSTRY FOCUS: PROPERTY

waves of the Covid-19 pandemic and the multitude of lockdowns experienced in Gauteng. In what is a highly competitive residential market, Giles Pendleton, Attacq’s Chief Development Officer explained that high-rise living has emerged as a far more sustainable alternative to the footprint of freestanding homes. “We have seen a move in real estate from large houses, and the accompanying maintenance, to a lock-up‐and‐go solution,” he relays. “More and more people are starting to look towards an apartment-style environment that gives access to a myriad of facilities right on their doorstep.” Upon completion The Mix will consist of 391 furnished micro apartments and has been carefully tailored to the country’s emerging young talent, not least in its proximity to the headquarters of many blue‐chip companies, and represents the ideal location for budding professionals looking for the

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unbeatable blend of convenience and world-class amenities it affords. “The success is testament to the fact that this development provides a convenient around-theclock lifestyle that residents within Waterfall thrive on,” assessed Robin Magid, founder and director of D2E Properties. “We believe that the high sales volumes are due to the

combination of a desirable product and the revolutionary online platform configured to accommodate buyers during the COVID-19 pandemic.” Attacq’s combination of a precinct-centric development strategy, willingness to embrace new technological advancements, peoplefirst mindset, and focused customer experience approach allowed it to


ATTACQ

10 Years of delivering multi-million Rand projects, both locally and internationally. Metrum Project Management Metrum Project Management provides professional project and construction management services to the building industry. Our level of service, motivation and accountability sets us apart in a competitive market. We understand the complexities of property development and work collaboratively with our clients to mitigate risks and create opportunities. Accredited and corporate members of the Association of Construction Project Managers (ACPM), The Green Building Council of South Africa (GBCSA) and the South African Property Owners Association (SAPOA).

www.metrum.co.za

record an impressive year close. A robust financial and operational performance was supported by a well-considered capital structure improvement programme and a strategy of informed disposals such as the Deloitte head office, Massbuild distribution centre and the Amrod

// VANTAGE’S 80MW CAMPUS WILL HELP FOSTER ECONOMIC GROWTH, STIMULATE JOB CREATION AND LEAD THE WAY IN ENERGY-EFFICIENT DESIGN //

building, all recently completed and at close to their valuations. “In spite of the headwinds, the business has delivered a solid performance we can be proud of,” reflected van Niekerk. “It’s been another year of flux for the real estate sector in South Africa – and across the globe - but during our 2021 financial year we were committed to being agile and responsive to the evolving operating environment. We ensured that we improved our capital structure, optimised our operations and will be embracing the various business disruption to continue to pioneer our business. “We continue to create value for our clients whilst pursuing growth opportunities aligned with our strategic focus that embraces business disruption. While Attacq has

remained focused on delivering on the financial and operational strategy, and we are extremely gratified to see this flow through in company performance, it is our team’s ability to roll with the punches and adapt at pace that has helped us keep moving forward so steadily. “We have endured many storms as a company and as a country, so please continue to deepen your roots. We will undoubtedly continue to do so at Attacq.”

WWW.ATTACQ.CO.ZA

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METSO OUTOTEC

Planet Positive Plan

Set Out by Metso Outotec PRODUCTION: Eleanor Sarbutt-King

Globally recognised as one the leading companies driving sustainability, Metso Outotec’s aim is to leave a net positive impact on the planet. Francois van Tonder, Marketing Director for Africa, and Charles Ntsele, VP Mineral Sales Africa, talk to Enterprise Africa about success of this strategy in their market sector.

//

In 2021, Metso Outotec – the global supplier of sustainable technologies, end-toend solutions and services to the aggregates, minerals processing, and metals refining industries – featured amongst the top 100 in the Corporate Knights 2021 Global 100 Index of most sustainable companies in the world. For a company involved in heavy mining and with major manufacturing operations around the world, this was quite the coup. Of 8080 companies analysed by Toronto-based media and investment advisory company Corporate Knights, Metso Outotec impressed thanks to its ongoing initiatives around sustainability, circular models, and plant first focus. In Africa, Metso Outotec has been a key player in mining operations for decades, providing advanced solutions to achieve results that would otherwise be impossible. Now, the company is helping clients to use less power, less

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water, emit less carbon, and recover more while using less. Its global pledge to leave a net positive impact on the planet has attracted positive attention, and Marketing Director for Africa, Francois van Tonder is proud of this Metso Outotec promise. “That is something that none of our peer companies were even close to,” he smiles. He explains that sustainability is now a core principle for the business and is included in planning and devising of strategy, both locally and globally. “Being in the mining industry, a lot of people assume there is no way we can operate in a sustainable manner,” he says. “But Metso Outotec sees itself at the front end of development of machinery and equipment that supports sustainability of the planet. We have a huge campaign globally around being Planet Positive. We want to design, manufacture and supply equipment that is sustainable, and as a company, we also have a huge

number of action plans to reduce our own carbon footprint, starting from the manufacturing units, along with suppliers into those units. In addition, we have several initiatives around reducing the carbon footprint in the logistics side and working cleverly to bring positive influence to all of this.” PLANET POSITIVE Charles Ntsele, VP Mineral Sales Africa, reiterates this ethos, explaining that the focus for the future surrounds three core elements. “Sustainable growth is the overarching theme for us. We plan to grow with Planet Positive products, and they talk to sustainability around water efficiency, energy efficiency, and digital solutions,” he says. “From a consumables point of view – items that are used to protect equipment, like linings and similar – we are looking at updating with sustainable offerings based on updated compounds. We undertake a lot of R&D



INDUSTRY FOCUS: TECHNOLOGY

to improve safety and lifetime, and reuse of material within a circular model. For example, we use rubber and steel to line some of our equipment. At the end of life we want to have the ability to take all of that back, separate, and remanufacturer using that material.” Manufacturing a large range of mining equipment including newly developed flotation products,

// NOW THAT WE ARE FREE TO TRAVEL, WE ARE GETTING TO OUR CUSTOMERS AND IT DOES MAKE A DIFFERENCE. PEOPLE STILL BUY FROM PEOPLE AND THAT IS WHY WE KEEP OUR MODEL // 54 / www.enterprise-africa.net

crushers, grinder, filtration, screening, separation, slurry and tailings management, and much more, Metso Outotec has set an ambitious global target of reducing CO2 emissions from operations by 50% by 2024 and logistics by 20% by 2025, compared to the 2019 baseline. ONE BUSINESS Globally, the company boasts more than 15,000 people and is headquartered in Helsinki. In Africa, Metso Outotec is home to around 450 people and work from main offices in Pretoria, Kitwe, and Accra. Satellite offices, presence on customer sites, and a network of agents and distributors bolster the offering and van Tonder highlights the merger of Metso and Outotec in 2020 as the key factor in firmly establishing the company’s presence on the continent. “Metso and Outotec merged officially in July 2020,” he details. “The new legal entity in South Africa came

into existence in October 2021. The two companies were in South Africa separately for a decade previously. Legally, in South Africa, we now comply with all BBBEE legislation and requirements, and we have done the same with the legal entity in Ghana. We are finishing up the legal entity in Zambia. In Africa, we look after 48 countries. Anywhere south of the Sahara is our responsibility. “We procure locally, and we have facilities that are not directly under the ownership of Metso Outotec but are partnership relationships where we support localisation.” Key in the company’s drive for improved sustainability, localisation is being pushed hard in Africa where the appetite for local involvement in value chains grows every day. AFRICA: RICH OPPORTUNITIES Van Tonder is extremely optimistic about opportunities on the continent and says that the company will always nurture localisation prospects.


METSO OUTOTEC

“There is huge potential in Africa,” he asserts. “All the studies in Africa show the potential that we have in new mines – they show something really big. If Africa can get the necessary investments, I think that the whole market can expand a lot. However, one of the major market trends within Africa is localisation. A lot of governments are trying to ensure that all the riches are not taken out of a country. We support localisation and we are trying to ensure viable economic solutions in transforming the market areas that we operate in.” He cites the 2020 divestment from an operation in South Africa as an example. “Metso used to have a manufacturing facility in Vereeniging and as part of a BBBEE deal, we sold this plant to a black owner and the company is now called Ostem. That is part of our drive to support the local economy. The deal was structured to give us a partnership and we are happy with the outcome,” says van Tonder. Confident of the Metso Outotec’s offering, and its ability to attract new business as new mines are launched, Ntsele details how a customercentred approach, built on standards of excellence, is helping this turnkey provider to grow locally. “From RFQ to receipt to close, the excellence in how we execute that part of our work talks about how we want to deliver for our customer,” he says. “We want to deliver a very positive experience and that includes delivery. We have programmes in place that encourage delivery of service that is excellent in every way, across every measure that is in our control. When the plant exists and there is Metso Outotec technology on site, that is when our service must also be excellent. We must understand the problem we are solving for our customers. Project implementation phase is not the right time to selling value add services, but we leave that on the table as it is required for the effective running of plant. We

Afri-Groan Engineering Services (AGES) is an engineering company working in the heavy industry covering mining, construction, manufacturing and value chain among other sectors. We specialize in: • Projects, Structural engineering, Fabrication and Installation • OEM ( Metso Outotec) sales, spares and equipment maintenance and inspections • Access scaffolding and mobile elevated working platforms • Wear Resistant Solutions, Conveyor Belts (installations, maintenance and splicing)

active ‘STAR’ for ages

 +263 242 662 105 / +263 242 667 897 enquiries@ages.co.zw  www.ages.co.zw

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INDUSTRY FOCUS: TECHNOLOGY

have a programme called Lifecycle Services and within that, we give the customer the opportunity to lighten their balance sheet, for example, by securing spares through a contractual relationship where we hold those spares in consignment.” The company also plans shutdowns and maintenance, and helps customers reduce the number of hours the plant is unavailable. “This releases value to the customer,” says Ntsele. “Sometimes

we have to streamline maintenance intervals as these sites are complex with multiple pieces of related machinery. Through our knowledge and experience, we help clients to optimise and that adds value. Our technicians are well-trained and go through an internal certification process so that their service level is guaranteed, and they can be supplied on site for clients as part of a package.” In a new mine, with less experience on site, this is a major asset.

// WE CAN TOUCH THE ORE, ALL THE WAY FROM THE MOMENT IT IS LOADED TO A TRUCK, THROUGH UNTIL THE POINT IT IS METAL, WITH EVERYTHING IN BETWEEN //

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UNMATCHED PORTFOLIO The company’s ore to metal solutions and service range is a key differentiator in the marketplace. Combine this with extensive local knowledge and industry experience, as well as notable success in sustainability strategy, and you have a market player that is starting to carve out its own future. “Metso Outotec’s strategy is coherent and clear, and it will help us to become an industry-leading company in customer satisfaction, sustainability and financial performance,” offers Metso Outotec President and CEO, Pekka Vauramo. Always innovating, Metso Outotec is busy with new products but many remain under wraps for now while final details are confirmed. “We have great plans,” smiles van Tonder who adds that he is not ready to talk about future product releases as they remain in development. But Ntsele details more about a recently launched flotation product that will assist in driving efficiency at mining operations where fine mineral processing is vital. “We have launched Concorde Cell™ flotation cell with the ability to recover very fine minerals. Most mines lose valuables through fine grinding and the technology is not good enough to recover at fine sizes, less than 30 microns. This new technology talks to sustainability as it is optimising output and recovery from your circuit.” The company claims this new product can recover the unachievable ore value, setting a new benchmark in high intensity pneumatic flotation. This is yet another innovation to strengthen the Metso Outotec portfolio. “We can touch the ore, all the way from the moment it is loaded to a truck, through until the point it is metal, with everything in between,” reminds van Tonder. The Metso Outotec operation is fully customisable and the company is happy to tailor bespoke offerings for clients depending on location,


METSO OUTOTEC

mineral resource, scale, and intensity of task. “From full lifecycle contracts, maintenance and optimised operation, and – depending on customer needs – we can customise the solutions,” says van Tonder. OVERCOMING CHALLENGES Going forward, there is much strength, ambition, and innovation within this business. The way the company staved off major disruption through the pandemic is testament to its ability to be agile and make important decisions quickly, despite its status as a major international organisation. “Our approach was to set our goals as if there was no pandemic. We didn’t budge or accept a slowdown because of Covid,” says van Tonder. “However, when you set a goal and an obstacle comes up, you make a plan to get around it. There are a number of things we have done to ensure we can get out to our customers. We had challenges – traveling to see customers across the border was difficult thanks to the lockdowns. Now that we are

free to travel, we are meeting our customers on site again, and it does make a difference. People still buy from people.” He reminds that the safety of people is the most important bottom line within the company and stringent checks were put in place to ensure risks were mitigated. Office team members were asked to work from home before government guidance came in, and the same employees are now offered a hybrid model where work is split between home and office. “We managed, in a good way, to make a difference and protect our people against potential exposure. We have taken all the benefits that we have learnt through the lockdown periods and we are using that to be even more efficient than before,” adds van Tonder. But, even with a new way of working, the company’s drive to become closer to its customers and help them achieve their goals in a sustainable manner remains. Metso Outotec will continue to search for

opportunities and relationships that build capacity for clients. “We have identified areas of improvement in terms of coverage and closeness to our customers around specific products. We are growing into partnerships with third parties, either as distributors or agents, and we give them an area of focus to increase our footprint in front of the customer,” says Ntsele. Without these deep relationships, Metso Outotec clients would struggle to perform in the safe and sustainable way that they do. This is a company building for the future through a Planet Positive strategy. With rivals yet to come close to the Metso Outotec ethos around sustainability, this is a company that will undoubtedly enjoy an industry-leading position as the mindset around mining and mineral processing shifts.

WWW.MOGROUP.COM

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CJP CHEMICALS

New Recipe for Growth PRODUCTION: Eleanor Sarbutt-King

The challenges of the past two years have allowed CJP Chemicals to learn and grow as it firmly establishes itself as an industry leader in the supply of raw materials and ingredients to every FMCG category. MD Karabo Radebe tells Enterprise Africa more about the company’s plans as it looks to the future with plans for growth.

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South Africa’s manufacturing industry has faced years of decline, stretching back way before the onset of the Covid-19 pandemic. For the best part of the last decade, manufacturers have struggled to keep up with demand has created an opportunity for importers to fill market demand at competitive prices. Locally, the economy continues to struggle to create sustainable manufacturing jobs despite the best

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efforts of business and government. In January, Stats SA announced that manufacturing as a whole shrunk by 0.7% year-on-year to November 2021, with sub-sectors ranging widely in their contribution. Power supply constraints, supply chain constraints and rising input costs resulting from the pandemic continue to stunt the manufacturing industry’s growth ambitions. But there are companies that able to navigate this tough

environment and buck the trend. South Africa’s manufacturing value chains are vital and those contributing know their reliable and robust offerings are significant in the country’s wider economic picture. CJP Chemicals, part of the Bud Group of Companies, is South Africa’s leading stockist and supplier of raw materials and ingredients for multiple industry sectors. This business has had to adjust to the ‘new



INDUSTRY FOCUS: DISTRIBUTION

normal’ and prepare for continued disruption across its importation operation, but continues to deliver for its clients, bringing products that are in high demand so the country’s manufacturing sector can work. PHENOMENAL LEARNING ENVIRONMENT Whether food and beverage, industrial, pharmaceutical, personal care or more in a long list of sectors, CJP Chemicals is part of the manufacturing value chain that keeps South Africa moving. At the end of 2019, a new Managing Director was onboarded to steady the CJP ship amidst challenging economic conditions. But, for Karabo Radebe – an experienced business leader - the challenge was about to get much more difficult. “My tenure was accelerated and compounded,” he smiles. “While only 27 months in, it feels like a lot longer given what we had to navigate. It was the most phenomenal

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learning environment which exposed strengths and weaknesses, and offered areas of focus in the business. It has provided a very good base for us to move forward as a business. Everyone has had to introspect and thoroughly understand what it is they bring to the market and how they can sustain themselves in this volatile, ever-changing environment.” With consumers increasingly under pressure, many businesses temporarily closed, and investment and capital projects placed on hold, demand was squeezed and the company had to adjust quickly to take advantage of limited opportunities. Thankfully, more than 30 years in South Africa, almost 200 permanent employees, a strong presence across the country, experience in

sub-Saharan Africa, and an enviable product range resulted in CJP Chemicals achieving relative success through extraordinary circumstances. “Our whole business is the importation of products and that is where the impact of the pandemic was most acutely felt – in supply chains,” asserts Radebe. “Be it an imbalance in shipping container availability, ports operating at limited capacity, if at all – both in source countries and in South Africa – it was a function of adapting to circumstances with rising commodity prices, rising shipping rates, unknown and unreliable commitment on timing. It was about whether we could adapt and communicate to our markets while securing stock from our suppliers.”

// THE LEADERSHIP TEAM IS CLOSE TO THE ACTION, AND WE CAN RESPOND QUICKLY TO OUR CUSTOMERS’ REQUIREMENTS //


CJP CHEMICALS

BEST-IN-CLASS As a best-in-class supplier, covering every FMCG category – with relationships across 26 international principals – CJP Chemicals strategy was to be open, transparent, and clear with clients about exactly what could be achieved. “The biggest thing is levels of communication, and being agile and able to turnaround and respond to information we receive to provide as much certainty as we can in a very uncertain environment,” says Radebe. Working hand-in-hand with suppliers, the flow of product continued through 2020 and 2021 and the company has now moved approximately 200,000 tonnes in the past three years. “Last year was very difficult,” admits Radebe. “South Africa went through hard lockdown restrictions which impacted the markets which we serve. There was less demand and less buying power; certain industries were completely closed for months – that was a very difficult period for us. In retrospect, the government appreciates that we cannot go through that extent of lockdown. We are still subject to the volatility that we are seeing globally, but, with regards to our customers, we are focussing on increased levels of communication so that they can understand where we are and make decisions with added certainty. We are carrying higher levels of stock than we normally would so that we can give certainty on price, availability, and volumes. It’s also about working closely with our suppliers to ensure shipments are loaded on ships and we have availability of stock.” CJP Chemical’s experience is vast and the company calls on years of practice dealing with clients of different size and scale. Its ability to supply products to solve bespoke and unique problems make it the partner of choice for many, and almost an extension of client’s business by

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INDUSTRY FOCUS: DISTRIBUTION

delivering what others cannot. By handling the entire journey of product from suppliers around the world, through South African ports, into CJP storage, and overland to customer facilities, clients are allowed to focus on excellence within their core business. “We leverage off our infrastructure and our core competency which is bringing in products to South Africa, warehousing it, distributing it, and covering that last mile for our global suppliers while being the port of call for local manufacturers who don’t have to deal with imports or warehousing. They can come to us, place and order, and 24 - 48 hours later get the products they need,” details Radebe.

“We service various markets but our biggest is the food industry followed by industrial, and personal care and pharma. Within that, there are several subsets,” he adds. “So, in food, we supply products into beverage, confectionary, wine, bakery, processed meats, flavourings, dairy etc. Under industrial, we supply products into construction materials, paints and coatings, mining chemicals, water treatment, lubes and energy. In personal care, we supply products into make-up and cosmetics, shampoo, body lotions, carriers and fillers.” This portfolio demonstrates quite the expansion from the early days of CJP Chemicals when the family business of the 1980s serviced only the local food space. Over time, either

// IT WAS THE MOST PHENOMENAL LEARNING ENVIRONMENT WHICH EXPOSED STRENGTHS AND WEAKNESSES, AND OFFERED AREAS OF FOCUS IN THE BUSINESS //

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by the product portfolio growing organically, or people joining the business with knowledge of other sectors, CJP Chemicals branched out into new industries. “That is how we find ourselves as so diverse today,” highlights Radebe. It is this diversity, combined with the agile approach from a flat management structure, that helps the company to differentiate itself from others in the market. AGILE AND NIMBLE “All of the big internationals are also in our market and smaller entrepreneurs are also servicing the market. We are able to take advantage as we have scale and we are established, but we are still able to be nimble - we’re not bound by big global processes, we can make decisions here. The leadership team is close to the action, and we can respond quickly to our customers’ requirements. “The relationships we have with our clients is unique. We have a long history and a lot of our relationships


CJP CHEMICALS

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extend over a number of years. Just knowing the level of service we can offer and being a sound player in the market – being able to offer customers certainty – that is key to our success and sustained performance over the years,” says Radebe. In the future, this is a company that can grow and intends to do just that. CJP Chemicals realises the importance it provides across multiple sectors, and the manufacturing industry in particular is reliant on companies that can supply certainty and reliability. As local manufactures look for long-term, adaptable, secure, well-priced partners, CJP Chemicals is positioned with its hand up. “We will be stabilising and strengthening our diversity,” says Radebe. “I want to introduce a focussed approach to each market,

strengthening the depth of expertise in each of our core pillars, to create a sustainable business. We have to remain relevant against the big bears and gorillas that have come into our market in South Africa. “Our heritage is a very commodity driven business and is also moving further up the value-added business into value added products and services as a pillar for growth. We also have to look at geographic growth. We are very South African orientated right now and we want to unlock opportunities outside of SA in a sustainable fashion. We have seen a lot of people go out with aggressive acquisitive strategies and that has not always served well. For us, it’s around exploiting opportunities while being sustainable.” After a whirlwind of a start, the Managing Director is confident

about the future. The company’s mantra of ‘driving excellence through innovation’ is being spread through the business from the top down. Targets are in place, and a clear strategy around sustainable growth is documented across various industries and geographies. Even in the toughest of times, with severe strains on all aspects of business and the economy, CJP Chemicals has demonstrated its abilities. This is a company with a proven recipe for success. “There’s chemistry in our service,” Radebe concludes.

WWW.CJPCHEMICALS.CO.ZA

www.enterprise-africa.net / 63



TRANSNET

Localisation Drive

Fuelling Transnet Future PRODUCTION: Chris Wright

By localising manufacturing, and partnering with regional partners to deliver ancillary services, Transnet hopes to return to profitability this year following the challenges of 2020 and 2021. www.enterprise-africa.net / 65


INDUSTRY FOCUS: INFRASTRUCTURE

//

These are tricky times for South Africa’s State-Owned Enterprises (SOEs). Names have been dragged through the mud, financial damage has been significant, operational inadequacy has been highlighted, and what should be organisations of pride for South Africans continue to miss the mark. But, behind the scenes – away from the cameras, courtrooms, and commentators – the fundamental work of the country’s government parastatals is ongoing. Huge numbers of employees – skilled people, with development and improvement of South Africa and Africa as the backdrop of their employment – continue to go to work hard, knowing that their contribution is invaluable. The necessity of cleaning up SOEs is not in doubt, but most are clear that the good work being done on the ground, out of the boardroom, should

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not be interpreted - the associated value chains and localisation that has been developed is too important. For this reason, President Ramaphosa continues to put resource and faith in the big SOEs, including Transnet. The benefits of a thriving infrastructure, rail, and pipeline company are too big to pass up. Calls for increased private sector involvement have not fallen on deaf ears, and the government is putting plans in place to test this with Transnet. Importantly, fantastic work is being done everyday by the company’s 54,000 people. Split between Freight Rail, National Ports Authority, Port Terminals, Engineering, Pipelines, and Property, these people are firmly behind the company’s vision to harness the power of the nation and combine with technology to brighten the future of millions across the continent – and beyond.

RESULTS IMPROVING At the end of the December, Transnet released its interim results for the period ending 30 September 21. With some pleasing numbers, and reinforcement that Transnet is a core driver of economic growth in the country, CEO Portia Derby reported to a Parliament Portfolio Committee on Public Enterprises that the company could start to see a return to meaningful profitability by late this year or early 2023. Transnet reported a R8.4 billion net loss for the year ended March 2021, but remains the only SOE to be completely self-funded by its own capital. This, the first loss reported by Transnet, was put down to the Covid-19 pandemic and its impact on freight volumes, and employee health as well as theft, vandalism, state-capture, and poor management from previous senior staff.


TRANSNET

“There is a lot that we need to do to get Transnet back on a stable footing and profitable once again. The latter half of 2022, maybe 2023, is when we will start to see some improvement,” said Derby. Transnet Board Chair, Popo Molefe added: “The impact of state capture on Transnet has been devastating. That will be apparent in our annual financials and the irregularities there. It also becomes apparent in our operational performance because that is linked to the manner in which we contracted when we procured locomotive and equipment.” The results released in December showed a revenue increase of 10.5% to R35.4 billion, a decrease in net operating expense of 0.4% to R22.1 billion, EBITDA at R13.3 billion, and capital investment spend going up by 15.5% to R5.7 billion. BBBEE spend also hit R11.3 billion, helping the

group to retain its Level 2 status. “Transnet has clearly demonstrated its financial and operational resilience as evidenced by the positive financial results for the six-month period. This improvement in performance in a tumultuous environment in which the company has experienced threats to its operational activities in the form of the cyber-attack and the civil unrest that led to the declaration of a Force Majeure is impressive, but the third and fourth wave of Covid-19 is expected to temper this recovery in the second half of the financial year,” said Group Chief Financial Officer, Nonkululeko Dlamini. GREEN LIGHTS Noted clearly by all officials, Transnet’s ability to nurture a thriving economy is undoubted. In January, Minister of Transport, Fikile Mbalula

said that Transnet NPA was working hard to utilise investments to improve port infrastructure. “To date, working closely with Minister of Public Enterprises and the Transnet National Ports Authority, we have given a green light in respect of a number of investments in the Ports, which will deliver tangible economic dividends and place South Africa on a sustainable growth path. “The Strategic Fuel Fund will construct an onshore Liquid Natural Gas (LNG) regasification facility at the Port of Ngqura. This investment is of national importance as it responds to energy policy and energy security of the country. The total project value is estimated at US$1.5 billion,” he said. In February, President Ramaphosa said: “Transnet is addressing these challenges and is currently focused on improving operational efficiencies at the ports through

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INDUSTRY FOCUS: INFRASTRUCTURE

procuring additional equipment and implementing new systems to reduce congestion,” as the company looks to bolster its relationships with private companies for localisation purposes. Already underway with private resources to prevent cable theft and vandalism on the freight rail network, the company will allow third-party access to the rail network from April this year to move more containers between Durban and City Deep. Another integration for Transnet is underway at Durban Container Terminal and Ngqura Container Terminal where a ‘special purpose vehicle’ is being created to assume control of operations over a 25year period. This process will be in collaboration with employees and an international terminal operator. This special purpose vehicle will operate on a license agreement with Transnet Port Terminals and will fund future expansion at Durban and Ngqura container terminals. According

to Public Enterprises Minister, Pravin Gordhan, this is not attempt at privatisation but a method of allowing Transnet to focus on its core purpose while continuing to achieve the goals of each unit. “Transnet doesn’t have the capital that it requires to attend to every single need that the economy has…

// TRANSNET HAS CLEARLY DEMONSTRATED ITS FINANCIAL AND OPERATIONAL RESILIENCE AS EVIDENCED BY THE POSITIVE FINANCIAL RESULTS FOR THE SIX-MONTH PERIOD //

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Transnet does require investment in its equipment and infrastructure and so it needs to find alternate ways of generating revenue which would assist with operational costs but also with investment, maintenance of equipment,” he said. “The special purpose vehicle will provide required investment in the terminal to improve efficiencies, resolve operational challenges and modernise the terminals,” Transnet said, noting reports that suggest both Durban and Ngqura container terminals operate under capacity. This strategy forms part of a wider focus from Transnet on localisation.



INDUSTRY FOCUS: INFRASTRUCTURE

// THE LINE, WHICH IS A LINK BETWEEN TWO STRATEGIC ECONOMIC HUBS IN THE EASTERN CAPE, WILL REDUCE THE COST OF DOING BUSINESS FOR THE MOVEMENT GOODS BETWEEN THESE TWO CITIES // In December 21, the company attempted reinvigoration of local manufacturing capacity around rails. “Transnet is placed at a significant disadvantage relative to its competitors in the market if it is compelled to procure through middle-persons, who add their own mark-up to the price of procured goods as a way to overcome the requirement to procure locally goods that are not manufactured in South Africa. This not only makes goods more expensive for Transnet, but reduces its ability to lower the cost of logistics in South Africa.

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“Transnet is therefore working with the Industrial Development Corporation (IDC) on the establishment of a local manufacturing facility for rails. Transnet has committed to procure from a local supplier for a period of up to 15 years to ensure viability of the supplier,” the company said. LOCAL RAILS This ambition will be vital in the country’s future drive for logistical expansion. In May 2021, Transnet Freight Rail doubled capacity on its export likes from the Free State to

support grain season. “Through integrated demand planning with farmers, TFR plans to move 550,000 tons of export grain, a 133% increase from 235,826 tons in the previous season. The 550,000 tons is equivalent to approximately 16,100 trucks off the road, which will have a material impact in easing road congestion in the Port of Durban precinct,” the company said, adding that it would further increase rail capacity for the 2022 season. In October 2021, Transnet confirmed the reopening of branch lines in the Eastern Cape aimed at


TRANSNET

supporting businesses in the East London and Coega IDZs. There is much appetite for railing of beverages and other FMCG products, cement and containers with auto parts between Gqeberha and East London. This R26 million investment into the Cookhouse-Blaney line was hailed by Portia Derby. “The re-opening of this branch line reaffirms our commitment to resuscitate economic development in regions that have been historically under-served in terms of infrastructure investment. The line, which is a link between two strategic economic hubs in the Eastern Cape, will reduce the cost of doing business for the movement goods between these two cities,” she said. “TFR Chief Executive, Sizakele Mzimela, added: “For TFR, the reopening of this branch line is a

massive achievement and fits squarely with Transnet’s strategy to contribute to our country’s economic recovery. “In addition to job creation opportunities, our sincere hope is to help stimulate economic growth by looking at ways we can connect with the communities this line touches, on key maintenance projects. This means longer-term, sustainable opportunities beyond the once off refurbishment,” she said. Eastern Cape Premier, Oscar Mabuyane highlighted, during his 2021 State of the Province Address, the strategic importance of the Cookhouse-Blaney line. “We are very much excited about the new collaboration and partnership between government and Transnet, as well as business for coming on-board to make full use of the available capacity, the expertise,

and experience in the business of freight movement management this partnership offers,” he said. Clearly, work on the ground is achieving results, and the day-today operations of Transnet – often overlooked in times of difficulty – are vital in the country’s economic progress. With localisation and upskilling at its heart, Transnet was, is, and always will be a crucial artery in South Africa’s system. With positivity being regularly achieved, and with a renewed focus on working alongside local businesses, it is likely that the only way is up for Transnet, and it will probably haul South Africa along with it.

WWW.TRANSNET.NET

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WINELANDS PORK

Quality Focus Assured

at Winelands Pork PRODUCTION: Eleanor Sarbutt-King

A drive for local produce, that is both high-quality and ethically produced, has helped Winelands Pork to command market share as one of the top Pork 360 Quality Assured businesses in South Africa’s agriculture space. Operations Manager, Henry Shaw talks to Enterprise Africa about how the company has continued with a focus on excellence through the pandemic. www.enterprise-africa.net / 73


INDUSTRY FOCUS: FOOD

//

In July 2017, Henry Shaw, Operations Manager at Winelands Pork, told Enterprise Africa that the expert abattoir and sales business was relentlessly driving a quality focus across the industry by adopting the Pork 360 accreditation – an initiative of SAPPO (the South African Pork Producers Organization). Winelands Pork was the first company to be approved as part of the scheme and Shaw was delighted that the company’s products and processes were recognised as superior. At the time, the company was growing and searching for expansion opportunities by offering quality inhouse training for staff and looking at export opportunities in various markets around the world. Today, following major shifts in markets and economies – all over the world – Winelands Pork is reassessing its strategy and developing plans for a post-pandemic world which requires a different approach. Thankfully, the value of pork in terms of health and availability has

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// WE RAN AT FULL CAPACITY AND, BECAUSE PEOPLE WERE NOT TRAVELLING AS MUCH AND SPENDING TIME AT HOME, THE BUSINESS MANAGED TO DO QUITE WELL // not diminished. High in iron and zinc, and packed full of protein, pork is a primary element in a healthy diet – lean, versatile, and nutritious. Farming pork can also be less problematic in regions where drought is common. Unlike cattle and sheep, pigs don’t need to graze extensive grasslands and can be well managed through intensive feeding processes. In South Africa’s fresh and open farmland of the Western Cape, pig farming continued relatively uninterrupted when Covid-19 was quickly moving through the human population. A key supplier into the food value chain – supplying retail, wholesale, and end users – Winelands Pork was allowed to maintain its operations albeit under strict new guidelines.

NO MAJOR COMPLICATIONS Shaw says that the company is well-versed in hygiene protocols and was already implementing stringent measures to ensure safety. “We had to step up all regulations and implementations,” he says. “We were sanitising and taking temperatures of every single person who came to the premises, not that it was a fool proof system but at least we were able to capture some cases. We have various categories in the abattoir – all the people working there wear protective clothing, they sanitise their hands and boots, and they get new clothing every time they enter the plant. On that side, we didn’t have too many incidents and we were not scared that we would have to shut down like some of the big plants in Europe.


WINELANDS PORK

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“We were monitoring everyone and sending anyone with even the slightest symptoms home to quarantine,” he adds. “On that basis, we managed to survive and avoid major complications. We ran at full capacity and, because people were not travelling as much and spending time at home, the business managed to do quite well.” The company was planning a number of projects and investments but these were hampered by the onset of the pandemic. “Covid hit and all of our planning was put on the backburner,” admits Shaw. He

2022/02/03 10:04

highlights the constant uncertainty around tourism and the opening, closing, and reopening of travel routes as a major hurdle with Cape Town thriving from tourism activity. Supplying wholesale into restaurants, hotels, and retailers, when the number of people coming into the city dried up, so did many of the businesses buying Winelands Pork. “You can’t invest if you’re not sure what is going to happen over the next year,” says Shaw. “We had plans to build a new facility but that was put on hold because of the uncertainty going forward.”

// YOU CAN’T INVEST IF YOU’RE NOT SURE WHAT IS GOING TO HAPPEN OVER THE NEXT YEAR //

MEAT EATERS South Africans consume around 200,000 tonnes of pork each year and the country has realised a 3.5% increase in production over the past decade. But input costs are going up and export costs remain relatively high. So, what has driven positivity for Winelands Pork? Firstly, the investment into Pork 360 quality accreditation has gone a long way. Customers recognise the importance of investing locally and spending on products that offer transparency about production. Pork 360 is a guarantee of food safety and, in the eyes of retailers and consumers, there is no more important factor. Secondly, the price of food has been rising. While this of course impacts production costs (pigs feed heavily on maize and soya), the price of food saw a

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INDUSTRY FOCUS: FOOD

9% jump year-on-year from December 21 to January 22. While this is a positive for food producers, it is worrying in the longer-term as pricing continues to grow faster than inflation with wage growth lagging way behind. Lastly, there are changing patterns in the consumer market, with many opting for fresh and moving away from processed and frozen (albeit

// ALL OUR FARMERS SUPPLY PIGS AND WE DON’T BUY PIGS IN FROM THE MARKET. THAT GIVES US A CONSISTENCY AND A QUALITY – THERE ARE NO VARIATIONS // 76 / www.enterprise-africa.net

slowly), and much attention being placed on locally sourced produce that supports local value chains. Winelands Pork has been all about local since its establishment in 2001. South African-owned, managed, and run, this is a local business with quality at its heart. “The abattoir is owned by shareholders which is a group of farmers,” says Shaw of Winelands Pork’s local flavour. “It is a similar set up to a cooperation and if you are part of the shareholding then you have to supply pigs. We are part of the Number Two Piggeries group in South Africa and they own around 85% of all shares as well as around 35% of all the pigs in South Africa, and 95% of all the pigs in Namibia. “All our farmers supply pigs and we don’t buy pigs in from the market. That gives us a consistency and a quality – there are no variations. We are in the fresh market and supplying to

retailers and butcher shops. Most of our competitors are in the processed market and they buy pigs, slaughter them, and then process the meat for sale.” GLOBAL AMBITION In the long-term, the focus for Winelands Pork continues around quality but moves beyond just product and incorporates all aspects of business as the company strives to be internationally recognised. “Winelands Pork’s aim,” the company states “is to strategically position ourselves amongst the most admired global marketers and distributors of pork meat in the world and to meet the various needs of the consumer every day by marketing and selling pork meat of a consistently high quality. The confidence that consumers have in our products is a result of our company’s many years of knowledge in pig farming, slaughtering of pigs, research and development as well as continuity.


WINELANDS PORK

Consumers relate to this and feel they can trust our products. We are ranked among the most admired companies in South Africa and our vision is to expand this status to that of a global one.” This global ambition will be achieved through a very local operation, realising the mission of value creation for both farmers and consumers through products, serving the nutritional needs of local and global communities, and driving responsible growth by fostering and focusing on a platform of producing and slaughtering pigs in the Western Cape. With around 300 staff employed by the company at its home on the outskirts of Cape Town, Winelands Pork is a large agri employer in the region, and is always training people in order to grow. Shaw, responsible for business development around the world, is confident of future expansion in new regions including other African markets and the Far East.

“Right now, we are putting a lot of effort into export as we don’t have the strength in the tourism industry or the same catering market. Restaurants are open but many went out of business during the pandemic. That market has shrunk quite a lot and we have lost a number of clients both directly and indirectly. We will really focus on export into Africa. In Namibia, Angola, Mozambique, DRC – they are huge consumers of pork. We already export fresh meat to Namibia and Mozambique. We also handle deboning to client specifications, and we can handle fresh meat supply to retailers, wholesalers, and production houses locally and nationally.” he says. With a strong platform to launch further export business, the news from the SAPPO that the industry looks set to become more efficient this year, is welcome news for Winelands Pork as it chases growth.

“Overall, we predict an exceptional year of innovation, because farmers are under immense pressure to produce affordable food while facing enormous rises in input costs. Feed prices are extremely high, and farm-gate prices haven’t increased proportionately,” SAPPO CEO Johan Kotzé told Farmer’s Weekly at the end of last year. As one of the larger, more respected, quality-focussed, and value adding companies in the sector, Winelands Pork remains in a strong position, and after a tough period this pork specialist continues to meet demands for this healthy and tasty meat.

WWW.WLPORK.CO.ZA

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DE KEUR

Rich Pickings for South Africa’s Cultivating Kings PRODUCTION: Timothy Reeder

A long-established and firmly rooted family-run agricultural business, over the course of its history in South Africa De Keur has built a reputation of cultivating first-class agricultural produce. Constant innovation in production lines, markets and the full range of in-house processes enable De Keur to remain the true apple of the nation’s eye in this most competitive field.

//

The De Keur legacy began in fairly unassuming fashion in the Ceres Valley, when Charl ‘Tippie’ du Toit acquired the De Keur farm in the Koue Bokkeveld mountain range in the Western Cape. With the site snapped up for the princely sum of £9,600 at a public auction held on March 28th, 1934, the transaction was sealed under the very same beautiful old oak trees that the farm retains and from which it continues to benefit from today. De Keur is blessed with land famous for its extremely fertile soils. Responsible

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for many a best-ever harvest in spite of drought and other plights and vital for the production of deciduous fruit, both the region and this legendary company have become hugely important to the South African fruit export industry. A pioneer of ethical farming, Tippie du Toit passed on the bestin-class practices and principles that gave the burgeoning De Keur such a solid grounding to his sons, Charl and Gys, who developed the farm into the industrial operation that it is today, plunging all of their effort and emotion into the production of quality fruits.

ENERGISED BY NATURE “Tippie du Toit was a man that believed in good farming practices, respect for all living things, honesty, fairness and dignity to all men,” De Keur rounds up. “After all, “A farmer is a humble servant of nature; his role is to give nature the opportunity to produce the best possible fruit. Nature creates, man only guides.” Continuing what he had tirelessly built up before them, Charl and Gys embraced the business and bought the Leeuwrivier and Rocklands farms in 1973 and 1981 respectively, as additional production units.



INDUSTRY FOCUS: AGRICULTURE

Both these estates are also situated in the Koue Bokkeveld and conjure rich crops of onion, apples and pears, while Leeuwrivier adds nectarines and peaches to the repertoire. In 2008 the pair brought on board the duo of Môreson and De Hoop farms in the Wolseley area, which again further expanded the product line to encompass blueberries and onion seedlings. A fruit packing facility in Ceres has also been in the De Keur armoury for more than 20 years, which extends the business’s presence across the supply chain. The facility currently packs all of the De Keur Estate’s fruit, as well as offering contract packing options to other local producers. “Owning our own packing facility gave us the opportunity and control to pack our fruit, meeting the exact demands and needs of our customers,” De Keur says. “Our packing facility has evolved over the years to cater for all the needs of our customers, especially the Freshmark Group who is the main supplier of fresh produce to the

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Shoprite Checkers Group. We strive to innovate and improve on packaging methods and material to give our consumers products that fulfil their expectations and much more.” The facility is operational yearround, and provides work to about 150 permanent workers, with a further 200 employed in high season. Rocklands also houses a similar facility where all of De Keur’s onions are packed and processed for the respective markets. “We are committed to supplying safe, quality assured, fresh and wholesome fruit that meet or exceeds our customer’s requirements and importantly comply with industry standards,” the company says. “We pride ourselves on being at the forefront of technology and agricultural science, as it’s paramount to increasing productivity and providing sustainability for the long term. “The aim of all technology is to transfer information effectively throughout the business in order to maximise productivity, efficiency

// EQUIPMENT IS CONTINUALLY UPDATED AS NEW TECHNOLOGY BECOMES AVAILABLE TO INCREASE EFFICIENCY AND IMPROVE FRUIT HANDLING // and above all, quality.” De Keur Fruit Packing is the perfect emblem of this commitment, a state-of-the-art facility, designed to grade, pack and handle fruit in the optimal way. MAF RODA Agrobotic was carefully selected as partner to take it through this vital next step of modernisation into the future of packing the right quality fruit, in the best and most effective manner, in order to suit consumer needs.


DE KEUR

“We strive for packing excellence and our new state-of-the-art MAF RODA packing line enables us to do just that,” declared Marina Potgieter, Director Packing Services. “We believe that we invested in a superior packing line with cutting edge technology which allows gentle fruit handling, precise sizing and sorting, defect detection and increased production. FRUITFUL TIMES AHEAD “We also strongly believe in staying up to date with new innovations and technology in the fruit packing industry. Equipment is continually updated as new technology becomes available to increase efficiency and improve fruit handling.” This quest for efficiency extends to such matters as payroll processes and management reporting, extensively overhauled last year through the implementation of Sage 300 People to achieve greater automation and cater to the business’s rapid growth. “The desktop product we were using before Sage 300 People served us well for many years, but we realised that we could improve efficiencies and streamline our business by implementing a newer solution,” opined Johan du Plessis, HR Manager De Keur Group on gaining access to an intuitive set of tools to avoid potential errors and hours lost to manual tasks. “Sage 300 People gives us a real-time view of our payroll, so we always have our finger on the pulse.” In 2019, De Keur embarked on its maiden exhibition at the South African pavilion at Asia Fruit Logistica. Already a big supplier to European markets, De Keur counts huge international

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Non-Woven Shopping Bags

clients including the UK’s Tesco and Marks & Spencer as customers and comprehensive accreditation lends it a formidable base from which to launch into new markets. “Asia is an important market in our marketing basket for various reasons,” outlined Cathrine Smuts, Marketing Manager. “So far we haven’t shipped apples to China but we have registered orchards for the 2020 season. China is a complex market but it’s one that pays good prices for high quality product, so the coming season is going to be a good learning curve for us.” With the famed De Keur quality on offer in the form of an increasingly wide range of produce and in more and more corners of the globe, the company’s dedicated staff bring it all together in the push for cultivating perfection. “At De Keur we have a proud heritage of

looking after our employees, which is a wonderful tradition that our grandfather Tippie started by treasuring his relationship with all of his employees,” De Keur concludes, with a look to what has yet to come for the growing greats. “In recent years a number of the ‘next generation’ has joined the business fulfilling a number of key roles from general management, production, and marketing to packaging and administration. This generation is proud to be associated with the De Keur legacy that their grandfather Tippie began in 1934, and they look forward to nurturing the legacy for generations to come.”

WWW.DEKEUR.COM

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MONTIGNY INVESTMENTS

Extracting Maximum Value

from Precious Timber PRODUCTION: Timothy Reeder

Montigny has over 55,000 ha of land under active timber management within the sprawling more than 80,000-hectare Usutu Forest Complex. One of Eswatini’s biggest employers, Montigny supplies markets around the world with its range of timber products, having grown from a small family business into the largest private timber owner-operator in Southern Africa. 82 / www.enterprise-africa.net



INDUSTRY FOCUS: TIMBER

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Proudly Swazi-owned and operated, and today positioned as the leading integrated timber grower in Southern Africa with a turnover in excess of E1 billion, Montigny Investments CEO Andrew Le Roux is quite clear on where the company’s competitive advantage lies, within such a crowded field across the Kingdom of Eswatini. “What makes us stand out from our competitors primarily,” he enthuses, “is the way in which we add value to every part of the tree.” “We are able to extract and utilise up to 95% of the tree’s value because of the breadth of our markets.” Back in 1997, Montigny was started up by entrepreneur Neal Rijkenberg, now Minister of Finance of Eswatini having taken up post in November 2018. At the time the operation was staunchly family-run, and supplied support timber to just one mine, but in actual fact the origins of the business date much further

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back to 1970, when the Rijkenberg family moved to Eswatini from South Africa and purchased a 200ha mixed farm near Nhlangano. The family had already been involved in the timber industry in Kwambonambi, the KZN centre of sugar and timber areas, when Neal joined the family business and began building up the sawmill in earnest and purchasing more farms, planting timber wherever the terrain and climate was suitable. Still, few would have been able to predict that this nascent outfit would swell to become the largest private timber owneroperator in Southern Africa. ADDING VALUE TO THE NATION In its contemporary form Montigny is positioned to service almost half of the entire regional wet-off-saw timber market, and boasts diverse timber-trading interests in South Africa, Swaziland, Mozambique, Namibia, Angola, Zambia and Japan.

// WE ARE ABLE TO EXTRACT AND UTILISE UP TO 95% OF THE TREE’S VALUE BECAUSE OF THE BREADTH OF OUR MARKETS // “Montigny takes an innovative approach to product development and supply,” the company expands. “We actively focus on extracting the maximum value from the timber at our disposal, and have extended our product range accordingly. “Competitive pricing and our commitment to excellence, in both product quality and service delivery, has seen us establish long lasting relationships with suppliers, service providers and clients around the


MONTIGNY INVESTMENTS

world.” Loyal customers of Montigny include the planking industry, for both industrial and fine carpentry applications, pallet users, the mining industry, furniture makers and construction companies. On crossing the border from South Africa into the Kingdom of Eswatini, formerly Swaziland, people often speak of a subtle yet perceptible change in atmosphere. While the rolling green hills and scattered rural homesteads are of a similar and familiar ilk, there is an overall air which suggests feeling more relaxed, less tense and surrounded by openness and warmth.

Montigny Investments’ forestry operation at Nhlangano confirms such impressions, the beating heart of a unique approach that is peoplefriendly and deeply integrated into the social fabric of Eswatini. It is one of the Kingdom’s biggest employers, having created close to 12,000 jobs since its inception, engaging with an extensive network of local subcontractors on top. It is a dynamic company which never accepts stasis, having rapidly expanded its timber resources and processing capacity and thus increasing its market share and turnover throughout its lifetime.

// MONTIGNY TAKES AN INNOVATIVE APPROACH TO PRODUCT DEVELOPMENT AND SUPPLY //

It combines this, crucially, with a proud and steadfast commitment to sustainable, profitable and ethical business practices, that are geared toward benefiting the local economy and adding value to the Swazi Nation. “Montigny commits significant resources to sustainable forestry practices, developing local enterprise, and giving generously to social responsibility projects. “Montigny is deeply committed to sustainable forestry,” the company adds. “We are careful to protect biodiversity and delicate ecological areas within our forests. As much value as possible is extracted from felled timber,” it explains, “and the remaining waste is used to generate energy.” Montigny also actively

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INDUSTRY FOCUS: TIMBER

engages with the communities of the more than 3000 residential units within the Montigny Usutu plantations and villages. “We conduct various social projects, school support initiatives, study scholarships, health clinics and sports events.” In 2006, Montigny’s founder, along with a team of social developers and entrepreneurs, purchased the abandoned mining town of Bulembu, pursuing the vision to restore it to a fully sustainable town which today provides care to over 350 orphaned and vulnerable children. “Our vision is to raise leaders while restoring a town

for sustainable Kingdom transformation,” the non-profit outlines. “Montigny plays an active role in the town’s commercial enterprises, as well as the care, education and health of the community, raising up the next generation to be the future leaders of Eswatini.” FOREVER BRANCHING OUT In 2014 Montigny concluded the purchase of Usutu Forest Products Company from Sappi, in a landmark deal which was the one of the largest private commercial transactions to take place in Eswatini. Its significance was lost on no-one at the time,

perhaps summed up best by Sappi itself. “This transaction is a positive for the country,” it effused, “because it brings total ownership of this important asset back to the hands of Swazi business people; a first since the inception of the company.” The Usutu Forest Complex boasts extensive and well-developed infrastructure and the deal put one of the largest, continuous man-made forestry estates in the world under Montigny’s purview. Montigny now transports and processes more than one million tons of timber per year, and nearly a million cubes of sawn

// MONTIGNY COMMITS SIGNIFICANT RESOURCES TO SUSTAINABLE FORESTRY PRACTICES, DEVELOPING LOCAL ENTERPRISE, AND GIVING GENEROUSLY TO SOCIAL RESPONSIBILITY PROJECTS // 86 / www.enterprise-africa.net


MONTIGNY INVESTMENTS

// MONTIGNY IS DEEPLY COMMITTED TO SUSTAINABLE FORESTRY AND IS CAREFUL TO PROTECT BIODIVERSITY AND DELICATE ECOLOGICAL AREAS WITHIN OUR FORESTS // timber make their way to market each year from the company’s more than 85,000 hectares of land, of which some 55,000 ha are under active timber management. These plantations extend all the way from Nhlangano in southern Swaziland, to the Usutu region in the North, and also encompass a total of eight mills and processing plants. As Montigny has driven untrammelled growth of its physical size and scope, similar has followed within its product line; timber remains at the forefront, of

course, through standard lumber supply to finished products and everything in between, while even local harvested and produced essential oils are now directed to the wholesale market, “in a natural and environmentally friendly manner to meet the cosmetic, pharmaceutical and household needs of the consumer everywhere.” Montigny is one of Eswatini’s great success stories, but for all its own success and growth, it remains loyal to contributing to the country’s overall economic growth, CEO Andrew

Le Roux hastens to add. “We have added value by continuing to create employment opportunities, from 6,700 in 2016 to 11,600 in 2019, and 12,500 by 2022, in rural areas with few employment opportunities,” he detailed to the king in 2019, discussing the country’s National Strategic Roadmap 2019-2023. “The Montigny Group of Companies has continued to prosper as we remain committed to your vision of growing the Eswatini economy,” he added. “Let us now unite in supporting the Strategic Roadmap by announcing that we are a safe, secure and stable destination for investment.”

WWW.MONTIGNY.CO.SZ

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WOOLWORTHS

Retail Pioneers Pursue

Pivotal Green Goals PRODUCTION: William Denstone

Dynamic store policies, so innovatory as to set Woolworths apart from its competitors, have been the order of the day at Woolworths ever since the first branch opened its doors to the public in Cape Town in October 1931. This forward-thinking ethos has led Woolworths to the contemporary creation of its Good Business Journey, guiding the SA giant to lead the green retail revolution via a litany of pioneering initiatives.

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Based in South Africa and operating across a further 10 countries in sub-Saharan Africa, as at June 2021 Woolworths SA had 719 store locations across this geographical footprint as well as a formidable online presence. Almost 33,000 people rely on it for their employment and some 3.7 million customers are active members of its WRewards loyalty programme. Woolworths Financial Services, a joint venture between Woolworths

South Africa and ABSA Group, is then posed and ready to serve Woolworths customers with focused financial products and associated services. “Woolworths South Africa is a leading sub-Saharan African retailer offering a range of primarily private label products,” the company introduces. “Woolworths SA offers a wide range of quality clothing, general merchandise and food products with a focus on innovation, value and sustainability.”

AHEAD OF THE CURVE Woolworths has been at the forefront of many experimental, innovative and, ultimately, long-lasting facets of retail over its legendary lifetime. Keen to attract and retain the best retail professionals, it was among the first local retailers to offer employees a pension fund, medical aid and maternity leave, and was also an early adopter of technology, already using a computerised merchandising system by the early 1970s.

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INDUSTRY FOCUS: RETAIL

Such dynamic thinking has consistently extended to Woolworths product offering, too. In 1974, the retailer became the first in South Africa to introduce sell by dates on food packaging, now a crucial and universal measure in safeguarding and improving shoppers’ experience and wellbeing. The pandemic offered Woolworths the ideal opportunity to show its nous in fulfilling customers’ most pressing contemporary needs, expanding its shopping options through a number of new contactless, Click & Collect drive-through stores. The scheme enabled shoppers another quick and convenient option for grocery shopping, without having to leave the comfort and safety of their cars. “We have seen an unprecedented increase in demand for our online offering during this crisis,” said Liz Hillock, Head of Online and Mobile. “Since the start of the lockdown we’ve increased our capacity by over 50% but demand remains sky high. Click & Collect is a great way to scale, because

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it also means we don’t compromise on our difference and core qualities, that being our rigorous cold chain to keep your favourite Woolies food fresh.” Even this month, Woolworths has reacted to the emergence of delivery services as one of the key markets in the country by moving to expand its Woolies Dash offering throughout South Africa. CEO Roy Bagattini pointed out that 30 stores in the country have same-delivery services and posited that this number will likely be closer to 100 by the end of the year. “I’m very excited by our runway for profitable growth, and the opportunities we see to invest in our diverse businesses,” he said at the recent shareholders’ meeting, highlighting a number of key differentiators the service possesses to help set it apart. “We are on track to rebuild our financial credentials, drive long-term value creation, and restore our business to its rightful place in the hearts and minds of all our stakeholders.”

ONGOING SUSTAINABILITY JOURNEY April 2007, meanwhile, saw the launch of one of Woolworths’s biggest ever initiatives in a history of progression and ingenuity, in the form of its Good Business Journey. “It is a bold plan to make a difference in eight key areas on our journey towards sustainability: Energy, Water, Waste, Sustainable Farming, Ethical Sourcing, Transformation, Social Development and Health and Wellness,” Woolworth explains. “We’ve made a commitment to care for the environment, our people and our communities. We call it our Good Business Journey.”

// WE’VE MADE A COMMITMENT TO CARE FOR THE ENVIRONMENT, OUR PEOPLE AND OUR COMMUNITIES //


WOOLWORTHS

Exacting goals comprising this stiff, staunch commitment. All directly sourced products must henceforth have at least one sustainability attribute, and all key commodities must be responsibly sourced. 500 billion litres of water is the target saving, and there is a drive to halve its energy impact simultaneously and to source uniquely from renewables by 2030. “Achieving sustainability in our supply chain and our own operations cannot be done overnight,” Woolworths sagely recognises. “It is an ongoing journey.” The announcement of a plastic bag-free store at Woolworths Steenberg and reusable bag awareness campaign was the perfect way to commence National Marine Week, and followed the announcement of Woolworths’s commitment to have zero packaging waste-to-landfill and for all packaging to be reusable or recyclable by the close of this year. “This is an ambitious target,” Woolworths added, “as most international retailers and producers with a similar commitment have set their sights on 2025.” The R5.50 reusable, recyclable shopping bag is locally-made from recycled materials by Isikwama, the black enterprise development supplier and longstanding partner of Woolworths, which has grown into a 100-employee strong organisation over the past eight years. Since opening its doors in 2010, the Woolworths Palmyra store in Claremont, Cape Town has consistently been ground-breaking in the sphere of advanced green building features and has set the green benchmark within the vast Woolworths property portfolio. The food market store was recently decorated as South Africa’s first retail outlet to achieve a 5-star rating certified by the Green Building Council South Africa (GBCSA). “GBCSA congratulates Woolworths on embracing green building practices and leading the way in creating

Baywear Clothing is a manufacturer of quality knitted undergarments for infants, children and adults. Fabric is produced on site in a modern knitting plant using 100% BCI cotton. The manufacturing plant is located in the city of Gqeberha, Eastern Cape, South Africa.

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more sustainable retail outlets in the country such as this one,” commented Manfred Braune, Chief Technical Officer of the GBCSA. “This is not just about doing the right thing, although that is, of course vital in the face of our local and global environmental challenges. It also makes good business sense to be investing in renewable energy, water harvesting and using innovative energy and water saving practices. Going forward, we look forward to seeing more green transformation in the retail industry in South Africa.” Woolworths agrees, and looks forward to being integral to the revolution. “Our vision to be one of the world’s most responsible retailers, and sustainability is core to our business – it impacts everything that we do. It has been entrenched into

the culture of our organisation and is put into action through our Good Business Journey strategy to enable a consistent approach to managing sustainability issues across the Group.” After all, sums up Feroz Koor, Woolworths Holdings Group Head of Sustainability, “as South Africans, we ultimately all want the same thing: a more sustainable country that protects its extraordinary natural heritage in our lifetimes, and for future generations. “We believe that setting ambitious sustainability goals challenges our own business to do more, and inspires others to collaborate on and contribute to this vital endeavour.”

WWW.WOOLWORTHS.CO.ZA

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CASHBUILD

Built and Rebuilt

on Immovable Foundations PRODUCTION: Tim Reeder

Unbeatable prices, dependable delivery, and advertised lines that are all in stock; Cashbuild continues offers them all to remain the largest retailer of building materials and associated products throughout Southern Africa. In South Africa in particular construction is enjoying a new dawn, and Cashbuild’s pursuit of growth cannot be curbed by even the sternest of challenges.

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From a vast, ever-growing network comprising well over 300 stores taking in South Africa, Namibia, Lesotho, Botswana, Swaziland, Malawi and Zambia, Cashbuild, whose shares have been listed on the JSE Securities Exchange since 1986, has honed its very own formula of selling directly to cashpaying customers to become the dominant retailer of building materials and associated products. South African construction has been on the receiving end of several massive shots in the arm to aid its recovery from the impact of the Covid-19 pandemic. With infrastructure investment critical in propelling the economy back into action, government announced that it is to pledge, over

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the course of a 10-year infrastructure investment plan, ZAR2.3 trillion (US$124.7 billion) to benefit the housing, energy, agriculture, transport, water and sanitation and digital infrastructure sectors. Combined with a resurgence in pandemic-inspired renovation, it is underpinning the complete revitalisation of an industry under severe pressure in recent years brought on by a dearth of infrastructure investment to this level, weak economic growth and low business confidence. The rebound is forecast to continue into 2022 and expand by 9.1% in real terms, building on the growth realised in 2021, and then stabilise at an annual average growth of 3.1% between 2023-2025.

CEMENTING LEADING STATUS What a time, then, to be the preferred vendor of mass building materials, home improvement and related products in each and every one of its territories and markets, able to offer a focused range of products and services suited to the specific needs of each. “We are the preferred retailer and integrated supplier of building materials, associated products and services, through chosen brands, across all market segments in selected countries, serving home-builders and improvers, contractors, farmers, traders,” Cashbuild opens. “Cashbuild is the first choice retailer in its chosen field in all the regions in which it operates. It achieves this by carrying a focused



INDUSTRY FOCUS: RETAIL

in-depth quality product range at the most competitive prices, to meet the needs of the local market for homebuilders, home improvers, contractors, farmers, traders and any customers requiring quality building materials at the best value.” Employing close to 7000 people through the totality of Cashbuild Limited, the South Africa-based arm, and the various operating subsidiaries registered in the many other countries it has established a presence, Cashbuild sets out to empower, recognise and reward its people at every turn. “Our progressive human resources practices, which promote a challenging and productive working environment and ensures that all our people develop to their fullest potential and are recognised and rewarded for outstanding performance. “Cashbuild is committed to the development of all its employees and encourages self-motivation and initiative.” Benefitting from a more than 40-year heritage in the industry, the company has grown into the leading brand for affordability and quality

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materials and true one-stop-shop for every conceivable DIY and renovation need, boasting product lines spanning the likes of bathroom, building, doors and windows, garden and hand tools, household and lighting products, paint and security wares. If that weren’t enough, Cashbuild has also built up an array of valueadded services in the unending quest to ameliorate its service offering. The VIC card has succeeded in developing a veritable fellowship among Cashbuild’s largest customers at national, regional and store level, and served to increase customer loyalty and, in turn, increase Cashbuild’s purchasing power. The Cashbuild Payment Card is also now available, to facilitate the purchase of building materials on credit, as is access to Nedbank personal loans, the perfect way to easily acquire the goods required for the project at hand. “We manage and improve our business through the Cashbuild way,” the company distils of this approach of continual innovation and development. “We deliver exceptional service and total customer satisfaction.”

// WE HAVE CONSISTENTLY GROWN REVENUE AND OPERATING PROFIT, AND WE WON’T BE SLOWING DOWN // BUILDING DESPITE SETBACKS Not only blighted by the turmoil of the pandemic and its oft-ruinous reverberations, Cashbuild was also forced to rebuild as swathes of South Africa were affected by last summer’s spate of looting, violence, vandalism and property damage. Almost one tenth of its store portfolio was left damaged and unable to trade, with 32 Cashbuild and four P&L Hardware sites affected, the latter acquired by Cashbuild in 2016. It hit group revenue to the tune of 10% for the first six weeks after year end, but the company was immediate


CASHBUILD

in its assurances to stakeholders, confirming that comprehensive insurance cover in place would serve to minimise losses to the group and the initiation of the process of rebuilding, restoring and restocking those establishments impacted. It was this customary resilience and stoicism in the face of any challenge thrown at it that had enabled Cashbuild to post a revenue increase of 25%, to R12.6 billion, and gross profit to swell by 34%. Basic earnings per share increased by 149% to R29.36, while headline earnings per share reached R28.73, a 152% boost from the prior year. It was a strength and ability to overcome which Cashbuild again

// CASHBUILD CARRIES AN IN-DEPTH QUALITY PRODUCT RANGE TAILORED TO THE SPECIFIC NEEDS OF THE COMMUNITIES WE SERVE //

called upon in its vow to continue to pursue growth opportunities, despite the shelving of its planned R1 billion acquisition of Pepkor subsidiary The Building Company (BUCO), which owns TimberCity and Tiletoria. The two parties were unable to agree on an extended timeframe for the deal following the Competition Commission’s recommendation that it be blocked, as reported in May last year, when it adjudicated that the proposed merger would create the single largest retailer of building material, hardware and related products in South Africa. “The proposed merger will give the merging parties the ability to unilaterally increase prices or change trading terms in several geographic areas,” it ruled, also concerned that the merging parties would use their buying power to exclude their rivals from competing in townships or rural areas. Disheartened, perhaps; nevertheless, Cashbuild was undeterred in its mission to open an average of 10 new stores each year, which would be approved based on the identified locations showing clear potential to meet strict financial

and operational criteria. “We have consistently grown revenue and operating profit, and we won’t be slowing down,” it pointed out, as Werner de Jager, Cashbuild CEO, added that the transaction would have aligned with Cashbuild’s overarching vision. “We are disappointed with the termination of the acquisition of BUCO,” he expressed, “as we firmly believe that this transaction would have aligned with Cashbuild’s vision of being the preferred supplier of building material and associated products and services across all market segments. “Cashbuild will, however, continue to pursue growth opportunities while still maintaining its commitment to its customers in the South African and neighbouring market,” he countered in closing. “Opportunities to expand further into the rest of Africa will continue to be carefully considered and their viability assessed, as and when they become evident.”

WWW.CASHBUILD.CO.ZA

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RAND MUTUAL ASSURANCE

A Policy of Care

and Compassion PRODUCTION: Timothy Reeder

Founded in 1984, Rand Mutual Assurance (RMA) is a non-profit mutual assurance organisation, owned by its policy holders and overseeing the receipt, adjudication and administration of workers’ compensation claims. An ever-expanding range of services enables RMA to respond peerlessly to times of distress, alongside a social impact strategy which has sparked massive recent entrepreneurship funding and responsible investing. 96 / www.enterprise-africa.net


Photo © Graeme Williams


INDUSTRY FOCUS: INSURANCE

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With 128 years of know-how, experience and calibre to draw on, RMA expertly undertakes the administration of claims for occupational injuries and diseases according to the Compensation for Occupational Injuries and Diseases Act (COIDA), with principal focuses on the mining and metals sector. Identifying a need to help care for miners who were injured while on duty, RMA was founded in 1894 by three mining companies on the Witwatersrand as a non-profit mutual assurance company, and to this day remains a mutual association whereby policy holders are also shareholders. At its heart and at every level of the organisation is a policy of care, compassion in the pursuit of the right compensation, RMA states. “No matter what a day may bring, RMA is our client’s constant source of warmth, compassion and care when life hands them challenges that seem too hard to face alone. We go the extra mile to ensure that beneficiaries and their families receive the care and compensation

Photo © Graeme Williams

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they are entitled to when they have sustained either a work-related injury or occupational disease. “Whether clients are injured on duty, ill or pass away and leave family behind, we are here to make life stress-free with a range of policies.” ADMINISTRATOR OF CHOICE This exhaustive array of products constitutes an unparalleled helping hand to see employees through times of difficulty, whether injured or ill on duty. “With the complete range of occupational insurance products, we can offer you a bespoke group cover policy to meet your company’s needs,” RMA explains. Crime and injury are covered against when commuting, as are group personal accident and injury at work or work-related events. International COID ensures employees who work outside South Africa can still enjoy workers cover for occupational disability or diseases, and in the worst imaginable circumstances affordable group

// NO MATTER WHAT A DAY MAY BRING, RMA IS OUR CLIENT’S CONSTANT SOURCE OF WARMTH, COMPASSION AND CARE // funeral plans are offered to companies for the benefit of their employees and provide a lump-sum payment to cover costs related to a funeral. Funeral cover assistance services have been a central focus for RMA in its recent raft of developments, ensuring that professional guidance is but a telephone call away in a bid to swiftly respond in times of distress and upheaval. For a small additional cost to an existing funeral cover premium support is afforded, not only in times of grief, but also for emergencies that may be related to health, travel, law, education, and recoveries and comprises the likes of a 24-hour nurse line, telephonic trauma counselling and repatriation of mortal remains. Kyansambo Vundla, group CFO, pinpoints the value-added products as where the growth some of the most lucrative opportunities for growth exist, particularly within life assurance offerings. “We’ve identified the strategy to ‘build a business of significance’,” she expands. “With a legacy of 128 years behind us, I think we have a trusted brand in the industry, and with a new executive committee to take us forward, it’s an exciting time,” she said last year. RMA employs every tool at its disposal in effectively and easily maintaining its policies and allowing business to continue with minimal interruption, underpinned by an integrated, high-powered IT system for the administration, adjudication and processing of compensation claims. “RMA’s high level of service


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INDUSTRY FOCUS: INSURANCE

Photo © Graeme Williams

and quick claims turnaround is underpinned by a market-leading integrated claims management IT system that allows for paperless adjudication of claims,” it delineates. “We are the administrator of choice for occupational injuries and diseases for Class IV (Mining), Class XIII (Iron, Steel and Metal) and related industries. Through our CompCare system, we offer enhanced efficiencies for the administration of compensation claims.”

// HELPING ENTREPRENEURS ACROSS SOUTH AFRICA WILL HELP LEAD TO SIGNIFICANT SOCIO-ECONOMIC GROWTH // 100 / www.enterprise-africa.net

HELPING HANDS TO BOOST SA RMA has built up an expansive footprint and one of its top priorities has been to become easily accessible to all clients, claimants and other stakeholders, through its head office in Johannesburg and via its many regional walk-in branches in Carletonville, Cape Town, Durban, eMalahleni, Johannesburg, Klerksdorp, Pretoria, Rustenburg and Welkom. “RMA lives by its caring and compassionate way,” it sums up. “We see it as a privilege to help communities further their skills; we enjoy seeing people being educated, reaching for their dreams and achieving their goals. We live to see the joy on people’s faces when they’re empowered and improve their standard of living. “Lending a helping hand is what warms our hearts.” RMA has recently revealed its largest commitment to responsible

investing to date, involving a R125 million contribution to the SummerPlace fund over a period of 10 years. SummerPlace Equity Partners is a black female-owned fund manager, investing in medium-sized businesses valued up to R200 million. “RMA’s Social Impact Strategy is designed to promote economic growth, uplift marginalised communities, and alleviate poverty in South Africa,” the company condenses. “It serves as a definitive plan with measurable outcomes and clear social impact. Responsible investing allows RMA to collaborate with a range of medium-sized businesses in various industries that exhibit major growth.” Of the five pillars which make up the totality of the strategy, also numbering financial education and inclusion, innovative skills development, and diversity and inclusion, the entrepreneurship aspect


RAND MUTUAL ASSURANCE

Photo © Graeme Williams

Photo © Graeme Williams

// RMA LIVES BY ITS CARING AND COMPASSIONATE WAY - LENDING A HELPING HAND IS WHAT WARMS OUR HEARTS // has also grabbed headlines of late as RMA looks to support businesses through either enterprise or supplier development during their formative years, enabling them to scale, create more jobs and subsequently boost the local economy. “Helping entrepreneurs across South Africa will help lead to significant socio-economic growth,” it posits, having pledged more than R58 million in funding to the cause through an enterprise development programme which, over a three-

year period, sees RMA cover a large portion of the beneficiaries’ operating and capital expenses. Beneficiaries participate in entrepreneurship programmes and training to eventually become fully independent in terms of operations and finances. “RMA is on a mission to improve the success rates of enterprises by encouraging strategic entrepreneurship and innovation that uplifts their surrounding communities. The support we provide to SMEs in our supply chain enables them to create more jobs, achieve higher revenues and reach sustainable operating levels that are independent of our support. RMA provides support in the form of salaries, office rental, IT equipment, furniture, travel, and other office operating costs.” RMA has a long history of going the extra mile in its bid to be the leading insurance provider and

administrator of employment injuryand health-related benefits. Already administering more than one million lives, it is able to have an impact more broad and more significant than ever in its lifetime through these quality, cost-effective and compassionate insurance services of the highest standard. “RMA is the warm African sunrise that welcomes warmth, comfort and care to the lives we touch,” the company concludes. “Just like parents who care for their children, the brand promise of RMA is to be caring and compassionate so that clients can go through life’s challenges a little bit easier.”

WWW.RANDMUTUAL.CO.ZA

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NETCARE

Person-Centred Care with

a Sustainable Heart PRODUCTION: Timothy Reeder

Throughout South Africa, Netcare’s unique and comprehensive range of private healthcare services and products cover the full spectrum of healthcare. As the company continues to rack up milestones and recognition in its provision of the best and safest care, the sustainability firmly at the heart of Netcare is embodied by its pioneering Alberton Hospital, scheduled to open in April this year. 102 / www.enterprise-africa.net



INDUSTRY FOCUS: HEALTHCARE

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“Our promise is to provide you with the best and safest care, centred around your unique needs and circumstances,” opens Netcare, South Africa’s leading provider of private healthcare. “We care about the dignity of our patients and all members of the Netcare family, and engage everyone with empathy and respond with acts of compassion in all interactions with our patients and their families.” Established in 1996 and listed on the JSE in the same year, Netcare operates the largest private hospital, primary healthcare, emergency medical services and renal care networks in South Africa. Today this translates to a suite of 57 owned and managed hospitals, including four public private partnership (PPP)

hospitals in South Africa, as well as one PPP hospital in Lesotho. In South Africa 9,996 registered beds are available joined by 425 beds in its Lesotho facility, totalling well in excess of 10,000 places. “It is our privilege,” Netcare states, “to care for patients from across South Africa, neighbouring countries and further afield in Africa who make use of the specialised treatments offered at Netcare hospitals. “At Netcare, we are striving to change healthcare for the better.” CUTTING-EDGE CARE Netcare hospitals are well and truly at the forefront of private healthcare provision in South Africa, in large part thanks to longstanding and well-established partnership with

// IT IS OUR PRIVILEGE TO CARE FOR PATIENTS FROM ACROSS SOUTH AFRICA, NEIGHBOURING COUNTRIES AND FURTHER AFIELD IN AFRICA //

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specialists. Most recently these standards have been endorsed by the largest representative body for radiology worldwide - the American College of Radiology - in its granting full accreditation to Parklane Radiology, making it Africa’s first and only Breast Imaging Centre of Excellence (BICOE). “We congratulate interventional and diagnostic radiologist, Dr Peter Schoub and the team at Parklane Radiology’s Women’s Wellness Centre on this landmark achievement for breast health on the continent,” effuses Netcare Managing Director Jacques du Plessis of this incredible achievement. The stringent requirements of the ACR process for accreditation encompass all breast imaging modalities, and to qualify, Parklane Radiology was required to demonstrate a high degree of proficiency in every one of these imaging types. This accomplished, all that was left to follow was the award of a full set of three-year ACR accreditations.


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INDUSTRY FOCUS: HEALTHCARE

// HEALTHCARE ORGANISATIONS CAN, AND SHOULD, MAKE A KEY CONTRIBUTION TO PROTECTING THE HEALTH OF OUR ENVIRONMENT //

“Limited breast health diagnosis and treatment facilities on the continent unfortunately mean that for too many people, breast cancer is only detected once it is at a more advanced stage. This can make it harder, and often more resource intensive, to treat,” Dr Schoub relates. “Our recognition as a Breast Imaging Centre of Excellence could not have been achieved without the caring, hard work, dedication to our patients and initiative of every member of the Parklane Radiology team.

“We thank our many patients for inspiring us and will provide them with world-class quality service in the years ahead.” While already viewed as bastions of the cutting-edge of care in the country, Netcare is ever-anxious to develop and implement solutions to further ameliorate the quality of its healthcare by inspiring its people, encouraging innovation and optimising operations. “We continue to invest in expanding our hospitals to meet the growing need for quality

healthcare services,” Netcare details, “and in equipping our facilities with the latest available technology. “This approach creates an environment where the specialists who practise at our hospitals are able to provide their patients with cuttingedge, life-saving treatments.” The new, ultramodern Netcare Alberton Hospital, which will open to patients in April this year, could hardly better embody this approach. Construction recently completed, its main contractor Trencon Construction last month officially handed over the building to Netcare for the final phase of preparations. “The handover represents a significant milestone in the development of our new future fit healthcare facility, and the culmination of a decade long journey of options analysis, planning and implementation of this new purpose-built hospital,” says Jacques du Plessis, Managing Director of Netcare’s hospital division of the new 427-bed facility developed by the Rejem-Linton-Netcare Joint Venture, a joint venture consisting of Netcare Properties, local businessman Riaan Jonker and Nedbank. SUSTAINABLE EXCELLENCE Power saving, water and waste recycling, integral building design elements and materials are amongst a raft of green initiatives forming part of the environmentally sustainable approach to healthcare at the

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NETCARE

// AT NETCARE, WE ARE STRIVING TO CHANGE HEALTHCARE FOR THE BETTER // Netcare Alberton Hospital, explicitly demonstrating the central focus on environmental sustainability at the heart of its design. “Developing the large 427-bed hospital from scratch presented us with the ideal opportunity to lay a strong foundation for providing healthcare more sustainably, through reducing reliance on the national power grid and conserving and recycling water, among other environmentally-conscious design features,” says du Plessis. Last year, Netcare became the first private healthcare organisation in Africa to commit to the Race to Zero 2050 challenge, pledging to support the UN’s goal of achieving net zero emissions by 2050. “Water is a finite resource and as a result of global

warming and pollution the availability of quality potable water supplies in South Africa are becoming more and more constrained,” comments André Nortjé, national environmental sustainability manager at Netcare, as some projections suggest that South Africa’s demand for water could outstrip available water supply by 17% by 2030, based on projected population and economic growth. “In the new hospital’s systems, we have therefore considered how this looming risk of water shortages could be mitigated,” Nortjé goes on, “and in line with Netcare’s 2030 sustainability strategy and our participation in the United Nations led international Race to Zero 2050 challenge, the Netcare Alberton Hospital will conserve water as far as possible through its own, onsite grey water treatment plant.” In the quest for zero emissions at the new hospital, which will merge and expand the facilities and services of Netcare Clinton and Netcare Union, a full building management system (BMS) monitors water and power usage throughout the technologically-

advanced, digitally-enabled hospital, to proactively foresee and prevent unnecessary wastage and optimise efficiency in daily operations. It is equipped with a photovoltaic solar energy generating system that will contribute two gigawatt hours of electricity each year, equal to seven million energy efficient light bulbs. “Environmental consciousness is a growing priority for people in their everyday lives,” du Plessis concludes. “The advanced design features, mechanical and building management systems at Netcare Alberton Hospital along with the Netcare Group’s sustainability targets demonstrate that healthcare organisations can, and should, make a key contribution to protecting the health of our environment for the benefit of individuals, communities and future generations.”

WWW.NETCARE.CO.ZA

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ADVANCED HEALTH

Advancing the Day Hospital

Revolution in South Africa PRODUCTION: Timothy Reeder

Through its extensive network of nine day hospitals throughout South Africa, Advanced Health South Africa (AHSA) is the industry leader in the provision of day surgery services. While its centres debut pioneering surgical techniques for South African patients it continues to inspire confidence and loyalty, by prioritising the delivery of high-quality, cost-effective healthcare at extremely competitive rates. www.enterprise-africa.net / 109


INDUSTRY FOCUS: HEALTHCARE

Knysna Reception

//

Listed on the JSE in 2014, AHSA establishes, invests in, and manages day hospitals in South Africa and now plays a fundamental role in its day surgery industry, having positioned itself within an existing healthcare system and supremely filled a key gap in the market. “Our facilities are modern, compact, and equipped to render same-day surgical procedures efficiently, with a strong focus on the quality of surgical outcomes at extremely competitive rates for patients and medical schemes.” Its establishment coincided with the revival of the Day Hospital Association in its current form, which sparked a large-scale promotion and vaunting of day hospitals and their benefits in South Africa. Increasingly in South Africa, medical schemes are now switching to align themselves far more to the day hospital model, AHSA points out, “and we are gradually

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seeing traction in them directing surgical procedures towards day hospitals as an alternative, more costeffective option. “More medical aids are channelling patients towards day surgery due to the cost effectiveness.” A MEDICAL REVOLUTION Globally, day surgery hospitals have changed the face of the patient medical experience by offering an alternative to acute or previously conventional hospital surgery, and almost nowhere is this truer than in South Africa where the concept of is gaining huge popularity as mounting hospital costs drive a rethink. It offers the ideal novel setting for short-stay surgical procedures in acute facilities, and the peace of mind it has afforded both patients and doctors has proved invaluable in pandemic conditions. Day surgery has gained significant traction internationally

// YOU AND YOUR LOVED ONES WANT THE BEST CARE, AT THE BEST FACILITY, AT THE RIGHT TIME // for its well-known improvements in anaesthesia, with a quicker recovery period, and pain control, as well as instrumentation and procedures such as keyhole surgery. These hospitals are, additionally, backed by reputations of running specialised facilities employing both state-of-theart equipment and high-end, skilled professionals who, in environments more conducive to shorter and less invasive working hours, can make a profound and lasting difference. “The Advanced philosophy is in line with the current changes in the healthcare industry,” AHSA


ADVANCED HEALTH

// THE QUALITY OF OUR SERVICES AS WELL AS THE CARE OF OUR PATIENTS STILL REMAINS OUR PRIMARY OBJECTIVE // reiterates, with the benefits clearly wide-reaching and numerous, “where the move to compact and custom-designed short-procedure facilities is being accelerated by surgical technology and modern anaesthesiologic techniques in both South Africa and Australia. “Day hospitals across the world are transforming the surgical experience for millions of patients

by providing them with a more convenient alternative to hospitalbased surgery,” AHSA states, “achieving the highest quality standards and positive patient experiences cost-effectively.” In essence, day hospitals are modern healthcare facilities performing surgical services and diagnostic procedures in a sterile environment. More than 60% of these interventions can be performed on a same-day basis, as a result of advanced surgical and anaesthetic technologies. Often cited as a major factor preventing even more widespread use of day hospitals is geographical access, but AHSA expertly circumvents such concerns with nine facilities located in Durbanville, eMalahleni, Groenkloof (Pretoria), East Rand, Knysna,

Roodepoort, Panorama, Worcester, and Simon’s Town. A total of 24 theatres, more than 200 licensed beds and in excess of 300 specialist doctors comprise a formidable whole, and make AHSA the day hospital provider with a difference. “You and your loved ones want the best care, at the best facility, at the right time,” AHSA condenses. “Advanced Health is the leader in the industry in South Africa with nine specialist day hospitals throughout our beautiful country. “We are proud of our achievements and we shall build on them to grow as a healthcare group that utilises relevant and costeffective technology to enrich the lives and add value to the needs of our patients, medical practitioners and personnel.”

All the Facilities, All the Professionals, All Together. For more than 35 years, the Benchmark Group has been involved in the healthcare industry, through medical real estate developments with its highly skilled professional team. The Benchmark Group’s focus is not only to increase its medical real estate portfolio through investment and new niche opportunities. The Group also grows their presence in the property industry through the management of medical and commercial real estate. The team imparts an inclusive and dynamic approach to the development or renovation of innovative medical facilities. This rightly services the growing population, being cognisant of newest knowledge, research & market trends.

www.benchmark-group.co.za | 012 663 5200

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INDUSTRY FOCUS: HEALTHCARE

THE HOSPITALS OF CHOICE The archaic funding structure in South Africa has traditionally favoured general or acute hospitals. As a result of their cost-effectiveness, day hospitals are now widely and vociferously advocated for shortprocedure surgery by medical schemes with not a hint of detriment to quality and safety. “It is difficult, if not impossible, for patients to get a similar cost advantage from a hospital,” AHSA adds, “even when quality and standards of care are equal.” Procedures performed in day hospitals are broad in scope and span knee, shoulder, elbow, hand, eye, skin, spine, cosmetic, gynaecological, urological, ear nose and throat, as well as dental and general surgery. Leading dermatologist and skin

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cancer expert Dr Johann de Wet has broadened this remit even further, opening the first dedicated Mohs Micrographic Surgery unit in the Cape Winelands area, at the Advanced Vergelegen Surgical Centre in Somerset West. Mohs surgery is a precise surgical technique with a near 100% cure rate and is considered the gold standard when treating specific forms of skin cancer. Dr De Wet cautions that there is an epidemic of skin cancer in the world, and South Africa is no exception where it is the most common cancer type. Although Mohs Surgery is well established in other parts of the world, South Africans have only very recently been able to benefit from this specialised treatment.

// IT IS DIFFICULT, IF NOT IMPOSSIBLE, FOR PATIENTS TO GET A SIMILAR COST ADVANTAGE FROM A HOSPITAL // “During Mohs surgery,” Dr De Wet explains, “thin layers of cancercontaining skin are removed in stages and microscopically examined until only cancer-free tissue remains. The goal of Mohs surgery is to remove the skin cancer, while causing minimal damage to surrounding healthy tissue, leading to smaller defects, and maximising the functional and cosmetic outcome that results from surgery.”


ADVANCED HEALTH

De La Vie Reception

// OUR FACILITIES ARE MODERN, COMPACT, AND EQUIPPED TO RENDER SAME-DAY SURGICAL PROCEDURES EFFICIENTLY // Proven to provide the highest cure rates when treating skin cancer. Mohs surgery is, too, the most costeffective and associated with the best cosmetic outcomes and covered by most medical aids. “Advanced has got the potential to grow the treatment of patients cost effectively in an environment where costs are predicted to escalate,” pronounced Chairman Carl Grillenberger, at the release of AHSA’s annual report for 2021. It made for extremely pleasing reading, with revenue showing growth of 43% on

2020 to reach R680.7 million, and EBITDA rocketing from R54.5 million to R162.6 million in the period. Cash generated from operations was up 44%, meanwhile, to R111.8 million from 2020’s R77.6 million. It spoke of the success AHSA has witnessed based on its failsafe formula of quality, cost-effectiveness and innovation, and Grillenberger recognised that the prevailing moods augur extremely well for its continued prosperity. “The funders of our healthcare systems have identified day hospitals as a safe and cost-effective

environment for the treatment of their members,” he closed. “Over the past few years, the day surgery industry has experienced substantial growth locally as well as internationally and is tipped as a growth industry for the future. The quality of our services as well as the care of our patients still remains our primary objective, and we have succeeded in entrenching our organisation as a cost-effective provider of same day surgery.”

WWW.ADVANCEDHEALTH.CO.ZA

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SANRAL

Reliable Road Network

Transforms Lives and Livelihoods PRODUCTION: Timothy Reeder

For SANRAL South Africa’s roads are its economic lifeblood - the ‘arteries’ of the country’s prosperity - and it is for the benefit of all its people that SANRAL is charged with delivering a safe, efficient, reliable and resilient national road transport system. “Ensuring our national road transport system delivers a better South Africa for all,” the agency asserts of its central vision. www.enterprise-africa.net / 115


INDUSTRY FOCUS: INFRASTRUCTURE

//

South Africa’s national road network creates benefits impacting a litany of spheres, including economic growth, tourism, social development and the creation of opportunities. Established in 1998 to align with staunch government commitments to transform the public sector, SANRAL harnesses a combined professional experience of more than 600 years, an accrual of core skills and experience in road development and management within a motivated and passionate team. SANRAL’s Tshwane head office is supplemented by four regional offices, a second in Tshwane and the remainder located in Cape Town, Pietermaritzburg and Gqeberha. SANRAL’s mandate is clear and welldefined: to finance, improve, manage and maintain South Africa’s vast, and expanding national road network. This is a system which currently stands at in excess of 22,00 kilometres

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- 22,207 kilometres according to SANRAL’s precise estimation. With an estimated value of R400 billion, it is considered one of South Africa’s largest infrastructural assets. “Our vision is to be a world leader in the provision of a superior national road network,” sets forth the agency. “As the custodian of the national road network, we are committed to the creation of economic value for the nation, through the provision of road infrastructure with a motivated and professional team, consideration for community needs and state-ofthe-art technology.” INFRASTRUCTURE DELIVERED Since the advent of democracy in South Africa, government has sought to realign its public expenditure, as well as the financing of public services, to redress past imbalances. “Recognising the enormity of many demands on the fiscus and the

// AS A LEADING ROLE PLAYER, JOB CREATOR AND INNOVATOR IN THE SECTOR, SANRAL IS AWARE OF THE CRUCIAL ROLE THAT MOBILITY PLAYS IN OUR SOCIETY // advantage of constructive engagement with the private sector, SANRAL has proactively sought alternative sources of finance for road infrastructure and opportunities to reduce dependence on tax-based revenues.” SANRAL has two primary sources of income: non-toll roads funded from allocations made by the National


SANRAL

Treasury, and toll road operations, which can be divided into two columns – those managed and funded by SANRAL and those wholly funded by private companies. Tolling represents a fair and equitable method as it enables motorists to be obliged only to pay for the specific section of road used; as such, it is often referred to as the ‘user‐ pay’ model. “SANRAL’s tolling approach is one of the most advanced systems in the world,” it adds, “which enables the individual design of each road section based on the needs for that particular section of the road. Tolls link the benefits for the road user

with its fees by charging users only in direct relationship to how much of the road they use.” Tolling’s importance is difficult to overstate, as it allows SANRAL to provide crucial roads much sooner than if reliant on the traditional tax‐based revenue funding. It assures the delivery of much-needed infrastructure in expedited fashion, and ensures that dedicated funds for maintenance is available to maintain a road network of world-famous quality, while augmenting road safety. South Africa has the highest cars per capita in Africa, with one in every five people in owning a

vehicle. With total vehicle sales in South Africa rising 19.5% year-onyear to reach 41,382 units in January of 2022, and well in excess of 10 million registered vehicles across the country, SANRAL’s task becomes all the more challenging and vital, as it neatly summates. “The South African national road network, managed by SANRAL, forms the arteries of the nation that connect major cities, town and developing villages in rural areas of the country. As a leading role player, job creator and innovator in the sector, SANRAL is aware of the crucial role that mobility plays in our society.

// WE ARE CONFIDENT ABOUT OUR TRAJECTORY AND OUR ROLE AS A CATALYST FOR ECONOMIC RECOVERY AND GROWTH IN THE COUNTRY //

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INDUSTRY FOCUS: INFRASTRUCTURE

“We are committed to delivering a safe, affordable, accessible and reliable road transport network which connects our cities, towns and rural areas, and connects people to jobs and services, supporting economic growth. By linking producers to markets, workers to jobs, students to schools and the sick to hospitals, roads are vital to any social development agenda in the region.” IMPACT BEYOND ROADS Reflecting its belief in roads’ critical role in South African progress and prosperity, SANRAL has instigated ongoing and significant investments in large-scale road infrastructure projects in the country. A number of these have targeted its all-important toll highways, such as in Knysna and the Wild Coast project in the Eastern

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// THE SOUTH AFRICAN NATIONAL ROAD NETWORK, MANAGED BY SANRAL, FORMS THE ARTERIES OF THE NATION // Province, one of the most beautiful parts of the country. “However, it is also one of the poorest, and would be well served by the development of a road system to encourage tourism and open up the region to economic opportunities,” SANRAL qualifies, as again the improvement of this infrastructure throws up an abundance of possibilities previously unthinkable. The spirit of upgrade and uplift is again apparent in the two major road upgrades slated for Mpumalanga this year, at a combined estimated cost of more than R9 billion. The

projects include the upgrading of the N2 between Ermelo in Mpumalanga and the border with KwaZuluNatal, which according to SANRAL’s Operations Maintenance Manager in the Northern Region, Madoda Mthembu, will be worth more than R6 billion alone. The second concerns the R40 between the Mpumalanga towns Hazyview and Bushbuckridge, which connects Mpumalanga’s capital, the city of Mbombela, with Phalaborwa in Limpopo. “It is also highly utilised by tourists to the Kruger National Park and the surrounding tourist


SANRAL

attractions,” Mthembu added of its multiple key functions. SANRAL also announced in February that it has been able, after no shortage of frustration and scuppered attempts, to award the contracts for the construction of the uncompleted intersections on the N14 between Olifantshoek and Kathu. “We are delighted to see this project finally entering the final stages of

// SANRAL HAS PROACTIVELY SOUGHT ALTERNATIVE SOURCES OF FINANCE FOR ROAD INFRASTRUCTURE //

completion. The intersections are a major road safety concern, and we are happy that SANRAL is prioritising road safety in our community. The jobs and subcontracting opportunities are a welcome boost to our local economy,” opined Councillor Ophaketse Hantise, Gamagara Local Municipality Mayor. SANRAL’s many and varied road construction and maintenance projects don’t benefit road users exclusively, they also improve lives and livelihoods within local communities and help transform the construction and engineering sectors in South Africa. “These projects have a positive impact across the board,” agrees CEO Skhumbuzo Macozoma, as SANRAL remains at the vanguard of a wholesale rebuilding in the wake of the pandemic.

“As the national road agency, we are confident about our trajectory and our role as a catalyst for economic recovery and growth in the country, and SANRAL is also playing its part in creating much-needed employment, especially for the millions of people who were previously excluded from our economy.” “Providing all South Africans with access to safe, intelligently designed and well-maintained roads is at the heart of what we do at SANRAL,” Macozoma reiterates, “but we also deliver so much more to improve lives and livelihoods.”

WWW.NRA.CO.ZA

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