Enterprise Africa October 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

October 2021

www.enterprise-africa.net

A Partner with ‘Special Responsibility’ Exclusive interview with Rheinmetall Denel Munition CEO Jan-Patrick Helmsen ALSO IN THIS ISSUE:

Trellidor / Veldskoen Shoes / Standard Bank / Sanlam

EDITOR’S LETTER

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

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

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161

By investing in new infrastructure projects, the South African government is trying hard to inject positivity into the commercial market. According to the Infrastructure Fund and DBSA, four projects have been earmarked for R21 billion in the current financial year. These flows, alongside other initiatives, are designed to provide opportunities for local organisations, and reiterate to international investors that South Africa is open for business with exciting things happening.

After the negative press the country received in July, this message is important and companies are welcoming the opportunities that are emerging as a result of government projects, and those that are coming through as, hopefully, the uncertainty arising from the pandemic tails off.

At Trellidor, the country’s leading access security products business, a switch to homeworking provided opportunities for growth as people reassessed their protection needs.

For Logicalis SA, leading technology and cloud services business, the transition to homeworking has also provided opportunities as companies look to solidify their security credentials and collaborate digitally.

At Veldskoen Shoes, one of South Africa’s burgeoning fashion brands, a transition to digital sales channels helped the business to sell when retail stores were closed.

Similarly, at Bata SA, a leading manufacturer of school shoes and industrial boots, an online strategy is in the pipeline to help take the business forward in markets across Africa.

Investments from the state, businesses taking chances, and entrepreneurs seeing opportunities shows that confidence is returning and people are looking forward with a healthy appetite.

Get in touch and let us know about your future outlook and what you’re doing to make the long-term exciting. We’re on LinkedIn

Joe Forshaw

EDITOR

E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

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

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

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6/SANLAM A Rock for People During Difficult Times 14/RHEINMETALL DENEL MUNITION A Partner with ‘Special Responsibility’ 22/VODACOM Super App Set to Disrupt South African E-Commerce 28/STANDARD BANK Conjuring Food, Jobs and Elegant Shelter from the Humble Mushroom 32/STANBIC BANK ZIMBABWE Zimbabwe’s Best Bank Keeps the Customer Right at the Centre 42/STANDARD LESOTHO BANK Striving to Reach and Include Every Lesotho Citizen 50/AVBOB Incomparable Care and Compassion in Times of Covid and Beyond 56/EOS CAPITAL Maximising Returns While Driving Namibia’s Growth 62/IMARA HOLDINGS Local Knowledge Leads Imara to Back Africa’s Fintech Revolution 68/AWCA INVESTMENT HOLDINGS Accelerating Economic Empowerment for Women

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CONTENTS

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74/GROOTE SCHUUR HOSPITAL Leading the Fight Through Innovations in Process, Service & Leadership 80/LOGICALIS SOUTH AFRICA IT Security Excellence Centred in SA 86/VELDSKOEN SHOES Shining on the World’s Largest Stage 92/BATA SOUTH AFRICA Bata Steps Out of Lockdown with Strength and Quality 100/TRELLIDOR Unbreakable Trellidor Stays Solid When Pressure Builds 108/DENNY MUSHROOMS Marvel at South Africa’s Mushroom Mega-Growers 112/ELPHICK PROOME ARCHITECTURE Collaboration and Innovation Keep EPA Building and Growing 118/HOMECHOICE Digital Drive Allows HomeChoice to Thrive 124/THE CAPITAL HOTELS AND APARTMENTS Five-Star Strategies Allow The Capital to Seize Opportunities www.enterprise-africa.net / 5

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FOCUS ON: SANLAM

A ROCK FOR PEOPLE DURING

DIFFICULT TIMES AS ONE OF THE LARGEST INSURANCE BUSINESSES IN AFRICA, AND WITH ACTIVITY IN SEVERAL GLOBAL MARKETS, SANLAM HAS SEEN THE BEST AND WORST OF THE LAST 18-MONTHS, STANDING ALONGSIDE ITS CLIENTS THROUGH THICK AND THIN. CEO PAUL HANRATTY TELLS ENTERPRISE AFRICA THAT THE COMPANY CONTINUES TO DELIVER ON ITS PROMISE OF SPREADING FINANCIAL CONFIDENCE.

“The funny thing is, as much as people say ‘it must be a terrible time to be in the insurance industry’, if you think about it, that’s why we’re here,” smiles Sanlam CEO Paul Hanratty, reminiscing on the tempestuous year of 2020 and the ongoing fallout in 2021.

A global pandemic; death, illness, fear, joblessness and uncertainty – Covid-19 ruined life for many. In March 2020, South Africa sank into lockdown, yet to emerge fully. Then, in July 2021, riots and looting across major metros destroyed businesses as the country realised negativity that required military intervention.

But at JSE-listed Sanlam – a diversified financial services group headquartered in SA, operating across various global markets – more than a century of experience has helped the company to provide calm and reassurance for clients in perhaps one of the country’s toughest years.

“These are the times we’re here for,” says Hanratty. “I’ve been in this industry for more than 35 years and there’s so many things that have happened. They come along every few years and you think ‘I never would have imagined that’, but you find a way through and, ultimately, that’s why we’re all there. There’s also why we have capital requirements and why regulators worry about who is well capitalised and who isn’t, and I must say that is the beauty of being in a place like Sanlam. The company is so well run and it’s so well capitalised that you feel you can be a rock for people.”

THAT IS THE BEAUTY OF BEING IN A PLACE LIKE SANLAM. THE COMPANY IS SO WELL RUN AND IT’S SO WELL CAPITALISED THAT YOU FEEL YOU CAN BE A ROCK FOR PEOPLE

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Interim results for the six months ending 30 June 2021 saw company performance boom. Paying out mortality claims of R8 billion in South Africa and R2 billion across the rest of its operations in the first six months of 2021, alongside sizeable pay-outs for contingent business interruption claims, Sanlam still recorded growth in operating profits, exceptional growth in the value of new business (94% higher than in 2020), and substantial growth in new business volumes (12% higher than 2020, with life insurance premiums up over 50%).

This, in a time where Sanlam, like most, was wading through confusion and doubt – it’s proof of a sound business.

“With Covid, we had to adapt very quickly. Getting people to work from home was pretty easy. We got our IT configured and we got people set up super quickly. It’s probably impacted our service a little bit but nothing really dramatic.

“I think the biggest issue for us in the early stages last year of lockdown was how do our salespeople and our financial advisors get to see customers? That became impossible and in certain segments of the market, people

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adapted very quickly to using FaceTime, Zoom and Teams.

But in the middle and lower-middle part of our market it had a very big impact on sales and the ability for financial advisors to see people - that was probably the single biggest operational challenge,” says Hanratty.

DOUBLE BLOW All of the large professional services firms highlighted the issues that insurers had to navigate. Deloitte said: “Claims costs will likely be specific to the class of business an insurer writes and their policy wording. However, the bigger picture concern is how the outbreak might affect the economic environment – specifically, prospects for growth and profitability in insurers’ underwriting and investment portfolios.”

KPMG highlighted the technological challenges, saying: “A further challenge for insurers is to respond to the increased risk of protecting the confidentiality of business information. In order to mitigate this risk, it is

FOCUS ON: SANLAM

I GUESS PEOPLE ARE ADAPTING TO THE NEW REALITY AND THIS IS THE WEIRD WORLD WE LIVE IN

essential to have a forensics and IT team work closely in developing and implementing strict remote connectivity protocols and monitoring these controls for any unexpected or unusual activity.

McKinsey & Company talked about the length of the problem to come: “The pandemic’s negative impact on the insurance-premium pool is expected to be roughly double that of the 2008–09 recession—and the sector will take twice as long to bounce back.”

PwC found that the big businesses managed to deliver good performance. “Despite the challenging macroeconomic uncertainty, the major insurers remained resilient and delivered credible financial results.”

S&P also spoke of the small rays of hope, stating: “The South African Insurance Sector is bruised but not beaten by the pandemic.”

But, unlike other global economies, South Africa was dealt a debilitating combo when unrest began smashing a nervous investment climate.

“It was very unfortunate timing because the economy was just beginning to show some real green shoots and, in fact, almost every business associate I spoke to, in whatever industry they’re in was quite positive, saying things are going much better than they thought. They were seeing better day-by-day, month-by-month, quarterby-quarter performance than we all anticipated, so things were definitely going better, consumer confidence was up and business confidence was rising,” says Hanratty.

Sanlam-owned Santam warned in July that the looting could impact the cost of insurance in the long-term thanks to a surge in new claims on top of the billions already paid out in relation to Covid and lockdown.

“There is no question that it will have negative impacts for some time,” confirms Hanratty. “Our economists did some calculations and we expect that it will take something like 0.3% off the GDP growth for the current year. That might sound small but it is a big deal when you’re recovering from a low base. It was definitely a setback.”

Even with this further setback, Sanlam continues to support initiatives that will drive the country’s economic development, allowing the business community to thrive.

The company is heavily involved in initiatives that will continue to improve on efficacy and volume in the vaccine rollout. It has also committed to assisting Sasria, South Africa’s state insurer that covers civil commotion, in the process when it comes to processing claims resulting from the unrest in a timely manner so that business can rebuild.

Paul Hanratty is confident about the future and says that recent times have forced people to reshape their relationship with insurance.

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“I think people are taking things a lot more seriously and they’re able to take them more seriously because they’re not spending money on travel, entertainment and restaurants etc. I think there has been a shift - definitely a shift in spending patterns and in people’s demand for financial security.

“We’ve had very strong new business so, ironically, we thought things would be very tough with economies contracting but actually people’s savings rates have gone up very strongly. So, while a lot of people have lost their jobs, those who still have jobs and their businesses are still running, they were saving a lot because they were not spending on other things.

Demand has been heightened because suddenly everybody knows people who are getting really sick or people who have either died or have come close to dying, so it brought that home and it’s of course made people even more aware about funding for retirement and so on because they’ve seen the fragility,” he says.

“I guess people are adapting to the new reality and this is the weird world we live in,” he adds.

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ACQUIRING GROWTH Despite all challenges, Sanlam has pushed for growth and continued with a strategy of acquisition, diversifying its geographic reach and creating a pan-African brand that is respected and powerful.

In June 2020, Sanlam took full ownership of FBN Insurance in Nigeria, strengthening presence in this important market. Sanlam stated that it viewed Nigeria as a key market on the continent.

August 2020 saw the company team with African Rainbow Capital Financial Services to build a black-empowered asset management business. Upon completion and regulatory approval, ARC FS took approximately 25% economic interest in Sanlam’s South African third-party asset management business other than the investment management business conducted

by Sanlam Private Wealth Proprietary Limited and the Sanlam Specialised Finance division.

This is a milestone transaction for Sanlam and opens new avenues for growth, improving competitiveness and further entrenching transformation as part of the group strategy. Patrice Motsepe, founder and chairman of UbuntuBotho Investments said: “ARC Financial Services through its

FOCUS ON: SANLAM

OUR ECONOMISTS DID SOME CALCULATIONS AND WE EXPECT THAT IT WILL TAKE SOMETHING LIKE 0.3% OFF THE GDP GROWTH FOR THE CURRENT YEAR

parent company Ubuntu-Botho Investments (UBI) has been Sanlam’s partner for more than 15 years. Over this period, both partners have created significant value for their respective shareholders, as well as for thousands of other stakeholders.

The partners benefitted as a result of their respective value add and contributions to the consistent growth achieved in their respective businesses.

“With the latest transaction, I am of the firm belief that it will enhance Sanlam’s business as a serious contender in this highly competitive asset management space. As before, UBI via ARC FS will competitively position and support Sanlam management to seize growth opportunities – to the benefit of both Sanlam and Ubuntu-Botho Investments stakeholders.”

Hanratty agreed, highlighting the BBBEE accreditation that comes with the transaction. “In South Africa, your empowerment credentials are a competitive factor in certain parts of the market and particularly for institutional asset management. If you’re talking to a pension fund, you have to know about the empowerment levels of the provider. By doing this deal, we’ve managed to put that business into a black-owned asset manager and that gives it some added

competitive advantage. Obviously, you need to be a good business and have good investment performance and good investment processes and products, but it adds a string to our bow, and we’ve indeed seen some good flows into that business post deal completion. It’s a coming together of what’s in our business interest, while also helping to promote the idea of moving wealth into black hands.”

Another important transaction was completed in 2018 is now seeing the Sanlam brand grow further. SAHAM Finances was acquired to bolster property and casualty insurance portfolio in Africa, outside of South Africa. SAHAM Finances was rebranded as Sanlam Pan Africa (SPA) General Insurance and is based in Casablanca.

“We’ve got a very good listed business in Morocco and we’ve got local shareholders. There was one big shareholder and he approached us because he wanted to elevate his investment from the Moroccan level to the group level. For us, it was an opportunity to increase our exposure to what we think is a good business while keeping him in as an investor at group level,” says Hanratty, highlighting Sanlam’s commitment and confidence in the transaction.

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Paul Hanratty

Sanlam waited to undertake the rebranding exercise so that the SAHAM business could be connected to the Sanlam culture and there was no chance of damaging any valuable client relationships.

“Our general insurance across Africa has been really good in 2020 and again we’re seeing continued good performance in 2021, whereas 2018 and 2019 were relatively weak years in the history that business,” details Hanratty. “We’re very pleased that we’ve had good performance, and a lot of people said maybe we had a good year because of lockdown and people couldn’t drive cars so I have to point out we don’t only do car insurance. We wanted to see how this year

would be and again we’re seeing great performance, so we’ve rebranded most of our businesses to Sanlam. People asked why we didn’t do this straight away. When you buy a business, you should introduce a new brand gradually. We’ve got to do these things carefully, so we wanted to test whether the Sanlam brand would work.

We’ve got a new promise and execution so it was about timing and getting things to coincide at a sensible time. We tested the market and we think the Sanlam brand will be well accepted, and so we’re effectively rolling out our new brand promise with the rebranding of our businesses across the continent, and I think it’ll go well.”

BY DOING THIS DEAL, WE’VE MANAGED TO PUT THAT BUSINESS INTO A BLACKOWNED ASSET MANAGER AND THAT GIVES IT SOME ADDED COMPETITIVE ADVANTAGE

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FOCUS ON: SANLAM

The new brand promise is all about providing financial confidence for everyone on the continent. Sanlam is committed to this promise and wants clients to be prepared the challenges life can bring, helping them to open doors and unlock dreams. By continuing to establish itself on the continent, delivery of this promise becomes more realistic.

“We will continue to consider opportunities that support our strategy across the continent,” confirms Hanratty. “People ask us why we don’t do greenfield projects but that’s actually very difficult and our philosophy is to partner with local people. It’s much easier to buy an existing business with local partners, local management; and then we try and bring something to the party in the way of technical skills, capital etc to enhance it, but not to change it fundamentally.

We think that the future of the continent is bright and good for our industry so we will do it over time as opportunities present themselves. We’re always looking at things. Because times are tough, there are likely to be opportunities.”

THOROUGH ESG In Sanlam’s 2020 governance report, a key focus area for the financial year was incorporating Environmental, Social and Governance (ESG) principles into risk management, asset management, and investing. In the past 18 months, interest and action around ESG has skyrocketed as those with money look to ensure their spend is ethical, moral and efficient. As a diversified financial services provider with global exposure, Sanlam has a responsibility to champion ESG principles for its clients, and Hanratty claims that the company is now giving this area more attention.

“For our investment activities, particularly with institutional clients, ESG is now a very big focus area. We’ve partnered with Robeco and we are rolling very thorough ESG into all of our investment processes. We’ll be able to say to every single client ‘in your portfolio, this is kind of the contribution, positive or negative, that you’re making on this front’. It’s not a black and white thing. It’s a question of whether people are exercising judgment and weighing things up that’s what is required. I think everyone at every level has to do better and for us it’s no different.

“If you want people to buy your shares in your company, your company itself now has to have a very strong ESG track record,” he adds. “It really is the ES and G - it’s all three. It’s an area that we are very conscious of because when foreign shareholders come looking for stocks on the JSE, Sanlam is a bellwether and it’s the single biggest stock in our sector so we must have good credentials.”

The UN’s Principles for Responsible Investment (PRI) details six elements that must be considered to ensure a more sustainable global financial system. All surround incorporating ESG into decision and policy making within organisations. At Sanlam, this is happening and helping the business to achieve its purpose of empowering generations to be financially confident, secure and prosperous.

“If you look at insurance penetration rates in South Africa, they are actually some of the highest in the world,” says Hanratty.

“Our focus will remain on consistently serving our customers, executing our strategy, maintaining the welfare of our employees, maintaining an extremely strong financial position and driving value creation from the diverse operations of the Group, to continue delivering value to our stakeholders despite the challenging operating environment,” he concludes.

Certainly, now is a time when quality, appropriate insurance and financial confidence has been in demand – rightly so. And even some of the biggest have struggled to deliver when it is needed most. Fortunately, Sanlam continues to stand strong, providing that shoulder to lean on, and working hard to produce fantastic results to the delight of clients and shareholders. Right now, you can confidently and wholeheartedly trust Sanlam.

VISIT WWW.SANLAM.CO.ZA

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RHEINMETALL DENEL MUNITION

A Partner with ‘Special

Responsibility’ PRODUCTION: Manelesi Dumasi

As a leading manufacturing business, Rheinmetall Denel Munition continues to provide opportunities and innovation in South Africa. The company is busy with multiple multi-million Rand projects, and is showing the strength needed to achieve desired objectives in tough market conditions. CEO Jan-Patrick Helmsen tells Enterprise Africa more.

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INDUSTRY FOCUS: DEFENCE

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The world of warfare is changing. Like the rest of the economy, digitisation is shifting the defence business technologically.

National security is now, more than ever before, a multifaceted industry and requires solutions across a wide spectrum. In Southern Africa, while physical deterrent and visible displays of strength are still commonplace, spending on defence has been vacillating.

Since 1992, Denel has been a dominant force in South African national security, equipping the South African National Defence Force (SANDF) and other security organisations with hardware, technology, and other products. But change saw Denel’s position weaken. Reaching concerning levels in 2015, financial worries saw the state-owned manufacturer sell off more divisions and restructure, following a period of market uncertainty where customer contracts, supplier relationships and the very nature of the business was under fire. Denel Munitions - the specialist manufacturer of large-

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and medium-calibre ammunition and world leader in the field of artillery, mortar and infantry systems as well as plant engineering – attracted new shareholding in 2008 and Rheinmetall Denel Munition (RDM) was born.

Ever since, the company has been modernising, digitising, rebuilding and reshaping to better serve national security forces in South

Africa and export markets.

From Officer in the German armed forces to Chief Executive Officer at RDM, Jan-Patrick Helmsen is a Rheinmetall veteran and has held positions across the group. He moved to South Africa to head up RDM in 2019 and is targeting continued growth on several fronts as the company negotiates ongoing periods of change.

RHEINMETALL DENEL MUNITION

// SINCE OUR COOPERATION BEGAN, WE HAVE BEEN GROWING AND THE RELATIONSHIP HAS BECOME VERY SUCCESSFUL. ANNUAL TURNOVER IS NOW TEN TIMES HIGHER THAN BEFORE // START WITH A BANG “Our core business is defence but the overarching thing is that we are a chemical manufacturing company specialised in producing explosives on five sites in South Africa. From the explosives, we produce ammunition as our core product. We handle development, design, manufacturing, and we have the full lifecycle process for our industry. We also have a business unit for industrial engineering where we build industrial plants worldwide,” he tells Enterprise Africa.

“Since our cooperation began, we have been growing and the relationship has become very successful. Annual turnover is now ten times higher than before, showing that if, as a State and country, you partner with a proper business you can grow.

“From an annual turnover perspective, we were doing well. We reached our targets for last year, but we had challenges with South Africa in a harsh level five lockdown.”

After just nine months at RDM, Helmsen found the business closed.

Covid had forced the shutdown, and the company’s progress halted.

“The defence industry and our company were not marked as essential so we had to close for almost three months.

As management, we decided to pay our people with the support of our shareholder in Germany. We believe this was our responsibility as an employer.”

RDM was quick to respond to the situation. The company put its employees first and foremost, and as they stayed home during the lockdown, RDM went about ensuring its partners were safe. The company donated 6000l of hand sanitiser to the SANDF, dished out 2000 packages of hygiene products to local families,

and delivered 500 bottles of hand disinfectant to children’s hospitals.

“We are also contributing with the vaccine rollout,” highlights Helmsen.

“Our business has five sites in South Africa and we started, alongside Clicks, using our doctors and their doctors to give vaccines to our staff and others on site.” This included contractors and other visitors.

At Group level, the company already manufactured PPE products, but it increased its output and order levels to suit the needs of customers and businesses within the group, to help protect as many people as possible.

SOLID PARTNER In such a live environment, it is imperative for RDM to build lasting, trust-based relationships. To date, the company has achieved this and Helmsen views clients from far and wide as true partners – involved in all aspects of development and deployment.

“RDM has a domestic arm where we are the ammunition supplier for South Africa and SANDF – this is our home market and where we come from,” he confirms. “We also have a global footprint and more than 85% of our annual turnover comes from international business. We service

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INDUSTRY FOCUS: DEFENCE

markets in Europe, UK, Australia, USA, Asia and the Middle East.

“In the defence industry, you have long-term partnerships. Your customers are always governments. We don’t have

B2B or B2C relationships – we only sell to the Ministries of Defence. That means that, even if there is an unexpected impact, these partnerships can secure the business.

“We are not only a supplier, we

Jan-Patrick Helmsen RDM CEO

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are a partner to soldiers and police worldwide,” he adds. “This partnership is really important as we are part of national security. You always need police, you always need politicians, you always need forces, and you need the defence industry to secure national security in your country. This is how I see our role – to be a partner of customers with a special responsibility; we are selling security. If people are using our products, it means they are under threat; they need to defend themselves or use deterrents – that is a unique responsibility. I see this role not as a supplier but as a partner and that is what separates us from others. We start from the design and go through prototyping, manufacturing, and full lifecycle support for our customers.”

Currently, South Africa is ranked by Global Firepower as the 32nd greatest military power in the world, behind Egypt (13th) and Algeria (27th) in Africa. The USA, Russia and China lead the rankings, based on more than 50 different contributing factors.

The United Nations (UN) and the African Union (AU) both view South Africa as the preliminary diplomatic peacekeeping force in Africa, having completed several missions on the continent over past decades.

In July, South Africa deployed more than 1400 troops in Mozambique to help fight insurgents linked to Islamic State. In the northern part of the country, in the Cabo Delgado province, violent extremists have been creating uneasy circumstances for some time and the SADC authorised military intervention. Clearly, there is an ongoing need for military action in Southern Africa, and this reinforces the need for a quality value chain and

// WE ARE NOT ONLY A SUPPLIER, WE ARE A PARTNER TO SOLDIERS AND POLICE WORLDWIDE //

RHEINMETALL DENEL MUNITION

// IF PEOPLE ARE USING OUR PRODUCTS, IT MEANS THEY ARE UNDER THREAT; THEY NEED TO DEFEND THEMSELVES OR USE DETERRENTS – THAT IS A UNIQUE RESPONSIBILITY // continued development of the industry which, at its heart, is a skills-based manufacturing concern.

“We have 1300 people, all located in South Africa. We also have a large number of interns which we are very proud of. Those 90 interns are young people who come from university or other educational routes and they see our company through a training programme before deciding if this is the right future for them,” says Helmsen.

COMPLEX FUTURE Going forward, the future of RDM remains in South Africa, and remains focussed on the manufacturing of products using its chemical expertise. Technology has dramatically disrupted the defence industry and, according to PwC, “emerging cyber, electromagnetic and biowarfare threats are adding to the urgency and changing the nature of defence… New competition, increased digitisation and accelerated procurement timelines will continue to weigh on incumbent players.

To succeed in uncertain times, leadership teams must plot strategy to anticipate changes, rather than reacting to them.”

For Helmsen, searching for new opportunities began long ago. Bullets can’t be made digital and so the company is already busy with projects away from defence, and is contributing with its shareholder to a concept that will unlock major value in the future.

“We have substantial business with the South African mining industry. We produce explosives for the mining industry, and we are also producing aluminium sulphate for water purification in the Western Cape.

Without RDM, no one in the Western Cape drinks water.

“We are looking into hydrogen

where there is a significant push in Europe, but also in South Africa as the world wants to go green and green hydrogen is a significant future business.

As a chemical company, we have substantial competencies in developing and prototyping. We can build hydrogen plants, we are investing in the storage of hydrogen, and we have projects where we are looking at integrating hydrogen in other complex systems,” he details.

The Rheinmetall group announced in September that it was pressing

ahead with its hydrogen strategy, partnering with government departments in Germany to prioritise mobility-based applications.

“Hydrogen is a key element in the ongoing transition to a climate-neutral future energy supply and the climateneutral transformation of industry.

Experts therefore see substantial global growth potential for the production, storage, distribution and use of hydrogen. A projection based on the goals of the Paris Agreement suggests that annual market volume could expand from the current figure of around €5 billion to over €100 billion by 2030,” the company states.

In terms of its core product and historic focus, Helmsen has no intention of losing market share.

“We are the market leader in

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INDUSTRY FOCUS: DEFENCE

ammunition and indirect fire from an artillery perspective. We always try to defend our pole position in the market with the largest range in the market,” he says.

In February, the company announced a deal with the South African military that would see RDM manufacture conventional 60mm and 60mm long-range mortar ammunition

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including high explosives, practice, illumination and smoke burst screening smoke mortar cartridges. This was the second order for 60mm products in the last 12 months. Delivering over the next quarter, RDM’s products will help Infantry and Special Forces troops deployed in counterinsurgency operations to engage targets successfully even in difficult terrain and built-up areas.

In February, the company received a R40 million order from an overseas customer for newly developed 110 lb/50 kg aircraft bombs as well as high fragmentation variants of its Mk 80 series warheads, including accessories and fuses. These products are designed for precision strikes from the air against vehicles and stations on the ground.

Clearly, there is need in the industry for RDM’s traditional range, albeit tweaked and improved for modern applications. But innovation is at the heart of this business. In the first quarter of 2021, RDM signed a MoA with the University of KwaZulu-Natal surrounding the development of new rocket propulsion technologies. As part of the SAFFIRE initiative - South African First Integrated Rocket Engine - RDM will supply design, analysis and manufacturing of key components, and the static evaluation of rocket engines.

The long-term mission is to assist in the development of a compact rocket

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// THE NEED FROM OUR CUSTOMERS IS NOW MORE COMPLEX COMPARED TO PREVIOUS TIMES WHERE SOLDIERS SIMPLY DEFENDED THEIR COUNTRY // engine that could power the first and second stages of a commercial small satellite launch vehicle.

Asked about the biggest change in the industry in recent times, Helmsen cites pace of transformation and complexity of requirements. This is a key driver behind the company’s focus on innovation through partnership.

“The need from our customers is now more complex compared to previous times where soldiers simply defended their country. There are now scenarios where soldiers are in more complex situations like cyber war compared to conventional warfare. That has an impact on our industry as we must react with different products.

The biggest change has been the cycle

of development around new technology.

Things are now smaller, faster and need to be integrated into our product range. This must happen in a way that results in a nice software system but with strength so that it can survive in a theatre of battle,” he says.

While much is changing in the wider industry, and major budgets are being tailored for future warfare and the digital dogfights that will come, troops and security forces on the ground require reliable excellence. Industrial plants and other processes require the knowledge of highly experienced chemical manufacturers. RDM is now perfectly positioned to offer strong, extensive support - now and in the future - to all of its partners.

“I want to continue with our success story of the last 10 years,” Helmen concludes. “The most important thing is that we have enough work and a good future for our people. I would like to provide our customers with the next technology cycle in the product portfolio and remain a strong partner for our customers.”

WWW.RHEINMETALL-DEFENCE.COM

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VODACOM

Super App Set to Disrupt

South African E-Commerce PRODUCTION: Timothy Reeder

Vodacom’s VodaPay super app is poised to revolutionise financial inclusion and economic growth in South Africa. Offering users basic mobile peer-to-peer (P2P) and QR code payments, alongside loans and an online shopping platform, the new business opportunities it will drive will be a major factor in transforming South Africa’s digital economy.

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INDUSTRY FOCUS: FINANCE

//

Vodacom, the South African telco group majority owned by one of the world’s largest communications companies by revenue in Vodafone, is a leading and purpose-led African connectivity, digital and financial services company.

Roots in South Africa have propelled the business’s operations to now encompass Tanzania, the Democratic Republic of the Congo (the DRC), Mozambique, Lesotho and Kenya, with mobile networks covering a population of over 295.8 million people.

“We believe in a connected digital society that connects people, communities and things to the internet like never before,” states the group, and across the eight strategic pillars underpinning its top three position in African telecoms are a raft of references to the significance of digital technology and its implementation. “We aim to be the leading telco in all markets through best network and IT excellence, with digital at the core,” it summarises.

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South Africa has a rapidly growing e-commerce sector, spurred massively since 2020 by the Covid-19 pandemic and its reverberations. Despite the boom in growth, online shopping still only accounts for around 2% of South Africa’s total retail spend - 14% less than the global average. Vodacom is here to harness its benefits to businesses and consumers alike, as unlocking the full potential of the e-commerce sector will have a prodigious impact on the entire economy.

// WE HAVE MADE SIGNIFICANT STRIDES WITH THIS TECHNOLOGY SOLUTION THAT WILL TRANSFORM THE FINTECH ECOSYSTEM IN SOUTH AFRICA //

VODAPAY SUPER APP “We build an organisation of the future where digital is first for all employees, underpinned by innovation, agility and new skills,” Vodacom underlines, “and scale our financial services offerings to empower the lives of our customers through financial inclusion.” These aims have all combined to result in Vodacom’s launch of a super app in South Africa.

VodaPay, developed by Vodacom Financial Services in partnership with

leading global digital lifestyle services platform and e-commerce giant Alipay, is an all-encompassing mobile payments solution that has been customised to meet the specific lifestyle and payment needs of consumers, businesses and tech developers. Alipay, which has in excess of a billion users, is in turn owned by Ant Financial, affiliate of China’s Alibaba Group Holdings.

“The world is moving toward e-commerce,” underlined Vodacom CEO Shameel Joosub to Bloomberg, “and

VODACOM

while leveraging off what we already have we also need to grow that side.

Since we announced the VodaPay Super App in July last year, we have made significant strides in developing this technology solution that will transform the fintech ecosystem in South Africa.”

Developers and businesses of all sizes are now being invited to join the VodaPay ecosystem by building their very own mini programs, as termed by the group, which employ worldclass technology to accelerate digital engagement and increase access to market. “The VodaPay Super App offers endless possibilities in acquiring new customers, trading and advertising through these Mini Programs,” Vodacom enthuses.

Vodacom reports that 70 businesses have already signed up or have committed to building their own mini programs on the one-stop shop for online transactions, including some of the giants of the African retail landscape. Makro, Builders Warehouse, Clicks and Edgars all occupy the list, as well as the likes of Game, Big Blue, FlightSite, Dollar Thrifty, NetFlorist, KFC and Booking.com, among many others.

Mariam Cassim, Chief Officer of Vodacom Financial and Digital Services, advised that VodaPay will be accessible to customers on any mobile network, but even more lucratively, it will be zero-rated for Vodacom users.

“It is an opportunity for your business to join a platform that has 43 million customers, and the ability to customise your products for the customers,” she remarked of the multiple benefits the app will afford.

“The beauty of the super app is that, in time, it is actually meant to target every single segment that we have in South Africa. As a start, we will be focusing on the highvalue segment, that is mainly the smartphone-enabled customers, and mid- to high-value segments. However, we have interesting use cases that look at the lower segments, such as creating bank accounts.”

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INDUSTRY FOCUS: FINANCE

WORLD OF POSSIBILITIES This is the next logical step in Vodacom’s history of positively transforming millions of lives across its markets, initially by connecting them to voice and digital products and services.

“Through our affordable products and services, we are bridging the digital divide in our markets,” it says at the dawn of this new era. African telecom operators’ businesses have expanded enormously from traditional voice

// THE ADOPTION OF DIGITAL TECHNOLOGY IS CRITICAL FOR BUSINESSES IF THEY ARE TO REMAIN RELEVANT IN THESE UNCERTAIN TIMES //

26 / www.enterprise-africa.net

calls into providing data and mobile payments, and digital financial services are now cemented as a significant aspect of the offering.

“As part of our vision to be a leading digital company that empowers a connected society,” says Vodacom, “we are using technology to transform our business model and enable a customercentric and digitally-connected world.”

Together with Safaricom, Vodacom recently acquired the M-PESA brand, to accelerate its growth in Africa and lead its expansion into new African markets. “Our joint venture will allow Vodacom and Safaricom to drive the next generation of the M-PESA platform – an intelligent, cloud-based platform for the smartphone age. It will also help us to promote greater financial inclusion and help bridge the digital divide within the communities in which we operate,” Shameel Joosub commented of its perfect alignment with both

Vodacom’s overall strategy and the aims of VodaPay. M-PESA is the largest payments platform on the African continent.

Launched in 2007, it now has 40 million users and processes over a billion transactions amounting to R366.4bn every month. M-PESA is operational in Kenya, Tanzania, Lesotho, Democratic Republic of Congo, Ghana, Mozambique and Egypt, and benefits from the growing smartphone penetration of these territories - currently around 25% of all M-PESA customers have access, a figure that is growing by 10% every year.

“We see this super app as a precursor to M-Pesa’s evolution,” Joosub explained, “supporting accelerated growth across our financial services’ businesses and assisting us in connecting the next 100 million African customers so that no one is left behind.”

Chief Financial Officer Rasibe Morathi highlighted the potential for

VODACOM

// THROUGH COLLABORATION WE CAN CHANGE THE ECONOMIC LANDSCAPE FOR THE BENEFIT OF THE ENTIRE COUNTRY // the super app to boost the group’s revenue. “Our financial services offering both in South Africa and the international market will benefit from further augmentation and the deeper product offering that comes from this super app,” he stressed. “Today South African financial services contributes 4.2% of our service revenue, but that 4.2% is growing faster than the rest of our business.”

VodaPay provides the infrastructure on which merchants and consumers transact, managing all the login, authorisation and payments processing aspects of their transactions, while the app allows consumers to do everything, from paying bills and sending money to playing games and ordering takeaways.

“Businesses also have access to next-

gen recommendation engines and data analytics to deliver personalised offers to customers as well as simplified checkout options, and advertising capabilities to drive sales,” Vodacom explained.

“A choice is available for customers of paying upfront, with rewards, or with payment terms such as buy-now-paylater and nano-credit offerings.”

“Our powerful partnership with Alipay strengthens our access to world-class technology and puts us on par with leading global digital counterparts,” Joosub neatly abridges.

“If we are to drive financial inclusion, and go even further together, we want to offer the capabilities of the VodaPay Mini Programs to as many businesses, of all sizes, across multiple industries as possible.

“The adoption of digital technology is critical for businesses if they are to respond to change quickly and remain relevant in these uncertain times. As we position ourselves as a leading pan-African technology company, we are excited to see the innovation from businesses and developers who will partner with us in using this technology to connect people to markets, and to build and support a resilient, dynamic, digital economy,” Joosub outlines.

“It is the most sophisticated platform in the world and so I think it is going to be quite transformational for the fintech environment in South Africa.

Through collaboration in establishing an inclusive mobile payment ecosystem, we can change the economic landscape for the benefit of the entire country.”

WWW.VODACOM.CO.ZA

www.enterprise-africa.net / 27

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STANDARD BANK

Conjuring Food, Jobs and Elegant Shelter from

the Humble Mushroom PRODUCTION: Standard Bank

If you’d been asked to predict what the major story to dominate Standard Bank would be by the middle of 2021, mushrooms might have been unlikely to feature among the guesses. But its partnership with the Massachusetts Institute of Technology (MIT) Label Free Research Group - a part of the Center for Bits and Atoms (CBA) on the ‘Mushroom House’ project. The visionary, far-reaching project emerging out of redHouseStudio is another extraordinary innovation in a long line of social responsibility upliftment initiatives, taking fungal material from mushrooms in Namibia to develop sustainable housing and food products.

//

“We have lived by our purpose of driving South Africa’s growth while providing world-class financial services to our customers for 159 years,” opens Standard Bank. “Each day is powered by our passion for finding new ways to make dreams possible.”

To date, this has entailed pushing economic growth across the African continent and beyond through the multiple divisions which make up the all-encompassing, steadfast and secure Standard Bank Group. “Our differentiator is our long-term commitment to Africa, our home, underpinned by a heritage of over 10 years on the continent.”

A proudly African integrated financial services group, Standard Bank provides banking, insurance, investment as well as non-financial complementary solutions that drive the financial wellbeing of clients at every stage of their financial journey.

CSR AT THE FOREFRONT The massive corporate social responsibility (CSR) that Standard Bank holds has long informed its operations as a whole. “Standard Bank is committed to driving sustainable and inclusive economic growth, as reflected in our purpose,” asserts Carolyn Kirksmith,

Strategic Development Executive at Standard Bank Group. “Africa is our home, and we drive her growth.”

“As Africa’s largest banking group by assets, we recognise the impact of our business activities on the societies, economies and environments in which we operate. We have embedded social, economic and environmental (SEE) considerations into our corporate strategy and day-to-day decisions.”

Whether labelled CSR, SEE, CSI or anything else, the concept remains universal: striving to attain a balance between the quest for financial return and social good.

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INDUSTRY FOCUS: FINANCE

THE MYCELIUM MIRACLE “Standard Bank firmly believes that co-creation is the key to acceleration,” the group makes clear, “and the fast-growing sustainable finance market provides Africa with an opportunity to identify and fund projects that deliver positive social, economic and environmental outcomes.”

That Standard Bank has co-adopted a litany of laudable causes in this space across the years is undeniable; none have been as unexpected or, arguably, as uniquely brilliant as its most recent. It

comes as a result of a partnership between Standard Bank and the MIT, alongside USbased architecture firm redhouse studio.

A seminal social upliftment project, the BioHAB initiative has the crucial aim of creating a sustainable economic and social ecosystem in Namibia, leveraging fungal material from mushrooms to develop housing and food products.

BioHAB will harness the mycelium - the root system that produces mushrooms – to grow housing completely from the ground up, as well

// WE NEED TO FIND INNOVATIVE SOLUTIONS THAT MAKE THE BEST USE OF SCARCE RESOURCES IN NEW AND SUSTAINABLE WAYS //

Carolyn Kirksmith

30 / www.enterprise-africa.net

as food products for consumption that immediately generate income. It may appear to have come completely out of left field but, while certainly groundbreaking, mycelium and its associated applications collectively known as mycotecture has been quietly and steadily gaining popularity as a construction material for as much as a decade.

“The mushroom farm is operating out of shipping containers in undeveloped land, the cultivators turn waste biomass into delicious mushrooms that easily outcompete beef on nutritional value per unit land, energy and time spent. The waste from this cultivation is immediately converted into strong, carbon-sequestering block bricks suitable for building,” said redhouse founder Christopher Maurer.

“We have developed new formwork from next generation inflatable technologies inspired by Mars exploration missions that can be used over and over again eliminating the need for costly and unsustainable formwork.”

BioHAB starts with the blackthorn ‘encroacher bush’ - Acacia millifera - that is choking Namibia’s water supply, harvested to create substrate, or food, for mycelium to grow through generating mushrooms and building, insulation and packaging materials replacing conventional, expensive, dirty processes.

Once harvested, the remaining material is compacted, on-site with in-housedeveloped, field-appropriate technologies into sustainable eco-friendly building materials. “By pressing and baking the waste,” Kirksmith continues, “the materials can be made stronger than concrete.

BioHAB is the world’s first building made with this sustainable technology,” she adds.

Work on BioHAB started in May 2019, shortly after Standard Bank Group became a sponsor of Dr Andreas Mershin’s Label Free Research Group at the MIT CBA and is an extension of the Standard Bank Namibia’s ‘Buy a Brick’ initiative, which in addition to removing carbon from the atmosphere, cleaning up farmland and creating new skillsets and jobs, aims to assist 500,000 no-to-low-income Namibians living in informal settlements.

STANDARD BANK

redhouse STRATOSPHERIC INNOVATIONS At its experimental site on the outskirts of Windhoek already in place, BioHAB is employing methods pioneered by architect Maurer for NASA’s Innovative Advanced Concepts programme. Geared towards creating a habitat on Mars, such methods require very little water and no additional nutrients, and these gourmet mushrooms use the least water, land and energy per pound of protein of many commonly grown crops.

“Standard Bank and MIT are partnering to leverage mycelium technology from NASA’s Mars program to develop an innovative way of building houses,” Kirksmith summarises.

“We are using the indigenous encroacher bush, a major ecological and environmental problem in Namibia, as food for the mushroom mycelium.

Good progress has been made to date in Namibia, our pilot country.”

The Namibian context lends even further importance to this campaign and its success, Kirksmith continues. “This

beautiful, arid country in the southwest of Africa is experiencing record drought, homelessness and unemployment, exacerbated by malnutrition and Covid-19,” she outlines. “This new way of building is designed to create food security, agricultural jobs and dignified low-cost housing all at once.”

With standard building materials like concrete and steel such significant contributors to the building industry’s sizeable environmental impact the sector is compelled to explore cuttingedge technologies that may influence future construction standards. BioHAB’s materials are multi-functional. They can be used structurally, for insulation, for fireresistance, and sound attenuation, and First Lady Monica Geingos agreed that they fulfil the brief exceptionally.

“This project opens up so many applications, and most importantly, challenges the building industry and society to think differently about how we can solve problems by being creative in promoting the lives of every member of society.

“It’s important to always dream big,” she added. “Problems unique to the informal settlements cannot be resolved by using conventional ideas, processes, regulations or laws.”

Having stepped far outside the conventional in pursuit of a solution, Carolyn Kirksmith feels strongly that this venture responds to this pressing need in a revolutionary way. “We are embarking on a journey into new territory,” she declares. “We need to find innovative solutions that make the best use of scarce resources in new and sustainable ways that enrich and benefit local communities wherever possible.

“While we still have much to do, we are excited and cautiously optimistic about BioHAB going forward,” she concludes. “Standard Bank, the CBA and redhouse are committed to furthering this technology to reach millions of people with healthy food, good jobs and comfortable, dignified shelter. In doing so, we hope to inspire the building industry to look more closely at sustainable low-carbon materials for building and regenerative practices for growing food.

“In a world after Covid-19, BioHAB is not just a building. It is an ecosystem, a circular and clean economy and a community. We firmly believe that it is the future.”

WWW.STANDARDBANK.COM

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STANBIC BANK ZIMBABWE

Zimbabwe’s Best Bank Keeps the

Customer Right at the Centre PRODUCTION: William Denstone

Standard Bank commenced operations on the African continent in South Africa, in 1862, taking the famous brand and all its expertise over to Zimbabwe in 1992.

The recently decorated institution has just enjoyed a roaring success of a tobacco season, and, like many across the group, harnessed the power of digitisation to ensure that both existing and previously-unbanked customers alike were financially empowered through even the worst of the pandemic.

32 / www.enterprise-africa.net

INDUSTRY FOCUS: FINANCE

//

The Standard Bank Group is the runaway leader banking and financial services group in Africa, and in Zimbabwe, Stanbic Bank has branches in Harare, Bulawayo, Gweru, Chitungwiza, Kwekwe, Mutare, Chegutu, Ngezi, Beitbridge, Hwange and Victoria Falls.

Guided and inspired by the group’s vision of remaining the leading financial services organisation in, for and across Africa, delivering exceptional client experiences and superior value, Stanbic Bank Zimbabwe, “is committed to making a real difference to financial services in Zimbabwe by providing banking services and products that enhance customer experience,” the institution states.

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COMPETITIVE EDGE Stanbic Bank CEO Solomon Nyanhongo opens with some key background to the business’s standing in the country. “Stanbic in Zimbabwe is renowned for being one of the domestically important banks in the country,” he says, “classified as a systemically important institution given the number of customers who bank with us and our command of around 20% of the total market share.

“We are well represented in the country and have branches in around 16 locations, which affords us coverage of pretty much the whole territory,” Nyanhongo adds.

“Anywhere there is business activity of significance occurring, you will find us there ready to serve.

“When it comes to foreign

currency business, we also have the largest share of trades in the market - close to 40% of the entirety.” Clearly an uncommonly dominant position, we ask the CEO to condense some of the competitive advantage which has propelled Stanbic Bank to the lofty heights it enjoys today.

// STANBIC IN ZIMBABWE IS RENOWNED FOR BEING AMONG THE DOMESTICALLY IMPORTANT BANKS IN THE COUNTRY //

STANBIC BANK ZIMBABWE

“First and foremost, we have very specialised units, or centres of excellence, staffed by subject matter experts across all the various key sectors in which we operate,” he offers.

“As such, we have a desk which caters for all of the mines and other business comprising our mining interest, and the same for energy, and these operate according to global standards.

“This makes our solutions to the various foreign currency conundrums

in the country consistently practical, specialised and fit for purpose; simply put, they deliver.”

Stanbic Bank’s receipt of the prestigious Best Bank in Zimbabwe award at the 2020 iteration of the African Banking Awards only cements its position at the forefront of the banking sector. As adjudged by EMEA Finance, it follows an almost identical accolade collected last year, from leading financial magazine

The Banker, continual recognition testament to its firm status as customers’ financial partner of choice.

TOP IN TOBACCO Tobacco production in Zimbabwe is a huge industry, this year forecast to grow by nearly 9% to reach 200 million kilograms due primarily to abundant rainfall. The lucrative crop is also a major source of foreign exchange for the nation, with

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INDUSTRY FOCUS: FINANCE

sales reaching $782 million in 2020 with 2021 set to eclipse even this figure. It is a vital component of the agricultural sector in Zimbabwe and contributes some 12% of the GDP. It is a major aspect of Stanbic Bank Zimbabwe’s business and brand, Nyanhongo clarifies. “We are a very big player in the tobacco industry and we command close to 50% of the market share, in terms of the lines of credit which we mobilise for the buying and selling of tobacco in the local market.

“It is also a key foreign currency, both for Zimbabwe and for us as a bank. Agriculture is one of our real fortes in the country.” Stanbic Bank is by far the biggest of the financial investment players in Zimbabwe’s

thriving tobacco industry, whose value is pointed out by Stanbic Bank’s Executive Director for Corporate and Investment Banking (CIB), Betty Murambadoro.

“USD$405m offshore and USD$20m onshore tobacco facilities are currently being enjoyed by the main tobacco merchants and primary producers linked to the major tobacco merchants and their value chains,” she delineates. “Tobacco production is a key component of the agricultural sector in Zimbabwe and contributes 12% of the GDP.” To fully capitalise in March this year, with the selling season looming, Stanbic Bank set up nine remote branches, or implants, at tobacco auction floors throughout the

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// WE COMMAND CLOSE TO 50% OF THE MARKET SHARE OF THE ZIMBABWEAN TOBACCO MARKET // country to enable ease of access to funds for tobacco farmers.

“The implants are seasonal and are set to go a long way in improving operational efficiencies as the country grapples with the relentless Covid-19 which has led to the decentralisation of tobacco auction floors,” said Murambadoro, as this solution ensured the continued service of tobacco farmers’ banking needs countrywide.

While it might be difficult to exactly replicate the success that Stanbic Bank has encountered in the tobacco industry, the business does have its sights set on novel sectors and product types, Nyanhongo explains: “There is certainly scope for growing our agricultural side and spreading our reach to different crops,” he explains. “We do have a strategic interest in grains, like wheat and maize, where we can expand into these areas and partner with growers to enhance their credit strength and ability to connect with larger corporates.

“Agriculture therefore presents an abundance of opportunity, but likewise energy is an area of real interest for us, and renewables in particular. To date we have mainly f inanced hydro electricity generation for the national power producer. More and more in the country, however, the government has been encouraging the participation of private players in initiatives like solar power plants, which we can finance, and we see ourselves participating in this, too, on a large scale.”

TCS BANCS™ CLOUD TO TRANSFORM STANDARD BANK CLAIMS PROCESS A cloud-first approach, a faster claims processing engine and high configurability, the TCS BaNCS™ Cloud for Insurance will help Standard Bank Insurance improve operational efficiency and streamline claims management.

The powerful partnership between Standard Bank and Tata Consultancy Services (TCS) was taken to new heights in May when Africa’s leading banking group selected TCS BaNCS Cloud for Insurance to drive digital transformation within its insurance business.

The partnership will see TCS BaNCS Cloud for Insurance streamline processes, grouping more than 60 products, currently divided over four claims administration platforms, to achieve quicker and more precise processing. By also integrating 16 different downstream applications including the enterprise GL system, payment gateway, CRM, business intelligence solutions and other peripheral systems, this new tech platform reasserts Standard Bank’s position as a continental digital leader.

According to TCS BaNCS, the most important part of insurance is the payment of claims very quickly, simply and seamlessly.

This is why TCS Financial Solutions signed a new engagement surrounding TCS BaNCS Cloud for Insurance offered on a software as a service (SaaS) model for insurance claims which will transform the way Standard Bank handles insurance.

It is run through Amazon Web Services Cloud as the cloud is the most important technical game changer going forward – most large businesses and banks are adopting it rapidly. Standard Bank is at the forefront of adopting the cloud and TCS Financial Solutions is thrilled that the bank has chosen TCS BaNCS Cloud. TCS BaNCS Cloud is available in South Africa and across Africa and the company invites anyone that is looking at it to get in touch and investigate how it can solve problems.

By taking a Cloud First approach, TCS Financial Solutions and Standard Bank are putting clients at the forefront of thinking, designing processes that improve outcomes and service quality. Currently, TCS BaNCS is deployed across more than 450 installations around the world, making the largest collection of components, enterprise and consumer apps for the financial industry available through the cloud.

“Customer satisfaction and loyalty are of utmost importance to us and with TCS BaNCS Cloud for Insurance’s SaaSbased solution, we expect to vastly improve policy holder claims experiences, deliver superior performance in a secure environment and benefit from the scale that a highly configurable solution offers,” says Dr Nolwandle Mqoqi, Head of Insurance, Standard Bank South Africa.

The two organisations have been collaborating for more than 20 years and TCS Financial Solutions views Standard Bank as the premier example of a financial services business adopting a truly digital strategy.

For TCS Financial Solutions, SaaS as a strategy is number one. The company has a cloud-first, SaaS-first strategy and clients are coming with phenomenal demand for TCS BaNCS™ Cloud. South Africa has an excellent adoption rate with cloud and TCS Financial Solutions is proving its abilities moving such a large application to a new platform.

“TCS cherishes the over 20-year relationship with the Standard Bank Group and our long-standing commitment to the South African financial services industry. We are pleased to be selected as the strategic partner to the company for this engagement. TCS BaNCS Cloud for Insurance will help Standard Bank’s short-term insurance enhance customer experience, reduce operational risk, improve claims efficiencies, and take advantage of emerging opportunities by seamlessly collaborating with an extended innovation ecosystem of insurtechs. This claims transformation sets up Standard Bank well for its next leg of thought leadership and client-centred delivery in the South African market,” says R. Vivekanand, Head, TCS Financial Solutions (TCS BaNCS).

Standard Bank and TCS have enjoyed a robust and enduring partnership that began with TCS servicing the Bank’s capital markets business in the late 90s. Over the years, TCS has successfully developed multiple technologies, across a variety of Standard Bank businesses.

As technology providers and transformational agents, TCS Financial Solutions believes that value unlocked through digital transformations is now significant and beneficial to clients in a Covid world.

TCS BaNCS Cloud prepares organisations for connectivity to anything, from anywhere, at any time. To stay relevant and grow, financial service businesses must invest in digital. TCS is the perfect partner for this exciting journey.

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The pandemic has set banks and financial institutions on evolutionary paths of exploring new, resilient business models and collaborative, connected ecosystems. The Cloud First approach has become a game changer for how financial institutions will operate in the future. After years of focusing on the cloud for its technological value as a faster, asset light and more elastic alternative, they are now looking at it as the always-on backbone of innovation.

TCS BaNCS Cloud delivered on a SaaS model is a comprehensive suite of pre-configured solutions for financial institutions of all sizes and types, with regulatory and data residency compliance built in. Resting on a strong digital core and designed on a microservices and API-based architecture, it can help institutions leverage the power of Open and enriched ecosystems, with curated partners from the TCS BaNCS Marketplace.

Be it updating systems faster or rebuilding transaction processing applications into leaner platforms, or executing on a consistent data delivery strategy, or applying cognitive tools like Optix for insightful decision making, TCS BaNCS Cloud is the solution that can drive your institution’s purposedriven journey into the future.

More than 100 MN transactions run on TCS BaNCS Cloud daily, and as evidenced by the 200+ customers who run their applications on the solution, it has steadfastly delivered on the promise of trust, accessibility, security, resilience, scalability, and compliance.

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Visit our website: www.tcs.com/bancs

INDUSTRY FOCUS: FINANCE

// WE HAVE INVESTED HEAVILY TO STABILISE OUR IT PLATFORMS, AND TO ENHANCE OUR ONLINE BANKING OPTIONS AND PLATFORMS //

CEO SOLOMON NYANHONGO

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DIGITAL PROVES CRITICAL It was a move mirrored across the Standard Bank group, but Stanbic Bank’s digital push at the height of the pandemic was arguably the most comprehensive and considered. “It went hand-in-hand with our efforts to enable our staff to work from home,” Nyanhongo says, “as we also sought to enable our customers to transact with us remotely.

“We have come up with products like contactless cards, helping to make payments hygienic and fast, and have invested heavily to stabilise our IT platforms, and to enhance our online banking options and platforms for our customers. Everything is possible at home, 24-7, across the vast majority of our service offering.”

Stanbic Bank Zimbabwe also opted to shift the cost of accessing a range of its digital banking platforms from the customer to the bank. Zerorating its website, Stanbic app, online banking and the SlydePay app, it was a move designed to allow customers access to key services as conveniently as possible, while encouraging uptake of digital banking platforms.

“Customer centricity is of utmost importance to our business and in keeping with this key pillar, we have seen it fit to ensure that our customers are able to access essential services on our digital banking platforms at no data costs,” commented Stanbic Bank Head of Personal and Business Banking, Patson Mahatchi.

STANBIC BANK ZIMBABWE

Recognising that, even today, digital is not universal, Nyanhongo also describes how the needs of those unable, or indeed unwilling, to embrace its dawn are met. “Our ATMs have been operational and functioning like never before,” he adds, “strategically distributed across the country for customers not wishing to transact with electronic money. We have kept some physical branches open, as well, and our business continuation plan is alive and well with back-up teams to get any branches that do have to quarantine back up and running within 48 hours.

“Our aim is to ensure that no customer is left out,” he summates, “and that they are all made to feel important and receive continuous service, whether or not they are able

// OUR CUSTOMERS ARE RIGHT AT THE CENTRE OF WHAT WE DO - WE ARE PLANNING AND GROWING TOGETHER WITH THEM // to make the jump to digital services.”

The customer first approach is one that Nyanhongo initiates right from the top of Stanbic Bank, and feeds through the entire organisation. It might just prove to be its key differentiator as it further distances itself from the completion in the country. “Our customers are right at the centre of what we do,” he wraps up. “We are planning and growing together with them.

“Moving forward, our priority is to deliver to our customers best in class service, which is unparalleled in the rest of the market. We

will continue to invest heavily in understanding our clients, in technology and in an environment conducive to retaining the best talent as we strive to remain the best bank for all our stakeholders.

“We want to be more than a bank to our customers,” Nyanhongo emphasises. “We want to offer a one-step solution, 360-degree service provision catering for every financial need.”

WWW.STANBICBANK.CO.ZW

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STANDARD LESOTHO BANK

Striving to Reach and Include

Every Lesotho Citizen PRODUCTION: Benjamin

Southwold

Standard Lesotho Bank (SLB) is the largest bank in the country, and reaps the full benefits of its association with the Standard Bank Group, Africa’s largest banking group.

Newly-appointed CEO Anton Nicolaisen is perfectly placed to talk us through the unique challenges of the territory, and the opportunities for the bank to craft solutions, bringing new ways of banking and financial inclusion to even the remotest customer.

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© Standard Bank

INDUSTRY FOCUS: FINANCE

//

SLB was rocked by the passing in October 2020 of its CEO Kenrick Cockerill, following a short illness. Following a glittering 32-year career with the Standard Bank group, in which he had held several key leadership and specialist roles in the likes of South Africa, Botswana, Nigeria, Kenya and Mozambique, Cockerill was appointed to the position in April of last year, until then CEO at the Standard Bank in Tanzania.

The bank described the huge sense of loss at his passing, and the value of his wealth of experience. “Kenrick Cockerill’s untimely death is a great loss to the bank, our staff and the banking industry in general as we were looking up to him to improve the experience of our customers across all our points of presence. The board, management and staff of the

bank conveys their heartfelt condolences to his family. He will be truly missed.”

Seeking a successor to a role of this import represents a colossal challenge in any situation; in these most tragic of circumstances it becomes nearinsurmountable. However, after Thabiso Tšenki’s spell as acting Chief Executive during the recruitment process for a substantive CEO, up stepped Anton Nicolaisen to take the helm in March 2021.

THE RIGHT SUCCESSOR The pinnacle of his own 32-year career history with the Standard Bank Group, Nicolaisen has already fulfilled a number of key leadership roles within the bank, developing and demonstrating the esoteric skills and abilities to lead a financial services organisation of this stature, along with an infectious, pure

// LESOTHO IS STILL DEEPLY ENTRENCHED IN ITS CULTURE, WHICH MEANS THAT WE REALLY HAVE TO LOOK AT HOW WE CREATE VALUE AND REACH CUSTOMERS // enthusiasm for the company and sector as a whole.

“I am a career banker,” Nicolaisen states, “having joined Standard Bank just as I was finishing my initial degree.

I immediately loved banking and, as I always say, I truly think that banking found me - it was the perfect match for my personality and love of structure and discipline, which are some of the core principles in becoming successful in the industry.”

“As I furthered my studies the bank then took me on a journey to some unbelievable places, through remotest South Africa, until I ultimately found myself in Gauteng having spanned the whole country and multiple units within the bank. Banking is such a multi-faceted business that you have incredible exposure to different people and aspects of the industry,” Nicolaisen says of the rich vein of experience this has allowed him to accrue.

“When this opportunity came about I went through the recruitment process and, ultimately and luckily, was deemed the right successor by the Board,” Nicolaisen explains. “It has always been on my bucket list to get exposure in other geographical areas than South Africa alone, and one thing I always tell people both within and outside of the Standard Bank Group is how many awesome opportunities are there waiting to be seized, to allow you to live out these dreams.”

Continues on page 48

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ECONET TELECOM LESOTHO

Pioneering Digital Solutions For Sustained Growth The past year-and-a-half significantly affected the business community, not only through the abrupt disruption of services, but particularly regarding growth and expansion plans that were in the pipeline. Econet Telecom Lesotho however has learned to pivot, and fast.

Econet Business Head of Department, ‘Mathato Nthontho said despite the world coming to an abrupt halt, they’ve managed to increase revenues.

“On the onset of the pandemic, we sped up digitization of our entire operations as a telecommunications provider including the support we provide to other businesses” said Nthontho She mentioned that the uptake of Direct Internet Access products and PABX solutions increased as more companies embraced the new normal and started running operations from the homes of the employees.

“There was an imminent necessity to have dedicated lines for uninterrupted connectivity, especially during peak hours when there is high traffic on the network” she added The company managed to roll out new products such as e-learning packages to support schools, teachers and students learning remotely. “This particular product has been well received as it was important for us to provide a solution that was accessible for all Basotho, affordable and fit-to-task” she stated “ Due to the resounding success, they’ve since extended its availability Nthontho happily mentioned that rebranding of their corporate sales department to Econet Business is one of the successful milestones they’ve reached this year. “This initiative is aimed at re-introducing the division to Lesotho’s business market, as well as rolling out new digital products for improved service delivery” promised Nthontho She further explained that they set up experiential booths in two (2) malls for a duration of two (2) weeks after the actual launch date as an effort to present scenarios for Econet customers to see, touch and check to appreciate all the digital gadgets that will work in tandem with existing data products and wifi packages. These include the Google Home

Hub; a virtual voice-controlled assistant to automate those tedious tasks like closing the curtains, turning on the lights, television, central heating, and even the surveillance camera software. “These are simply connected through an app on the customer’s phone using our high speed data or fibre package to make life a lot more convenient” she admired Econet Business digitized access to consultants for business enquiries with the launch of a dedicated Microsoft Teams and Zoom link that can be accessed from the company’s website www.etl.co.ls.

She explained that the service allows key account managers to assist clients effectively without having to schedule an inperson consultation, that would otherwise involve travelling time & cost. “At the click of a button, a client can reach their account manager” she cheered.

Another milestone has been the refurbishment of the existing system; the Self Service portal. This is an allinclusive account management portal for customers to carry out various functions such as sharing data with other Econet subscribers or across multiple devices, viewing account balances or purchasing voice and data bundles.

Nthontho explained that their focal point moving forward is to be the leading provider for digital solutions in Lesotho.

“You’ll notice this in the distinctive way we’ve changed communication with our customers” she said Additional channels introduced include a live chat function on our website is an alternative to dialing our contact center 100 and dedicated WhatsApp text line +266 66 100 100. “We are doing all these to encourage and create a supportive system for Basotho to embrace the digital experience” explained Nthontho She concluded that they have a lot of exciting new projects in the pipeline to make life a lot more convenient for their patrons.

“As the world adapts to the new normal, we too will continue introducing new products and migrating services to virtual” she added.

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A MEMBER OF THE

H L O B A . C O . Z A

INDUSTRY FOCUS: FINANCE

CEO Anton Nicolaisen

© Standard Bank

Continued from page 44 Amid the challenges and conundrums of the ongoing tumult, the customer is at the forefront of the new CEO’s concerns. “The current environment is truly tough from a human point of view, especially as the third wave continues to punish us hard. The exciting part is the opportunities that this presents, specifically for Lesotho.”

// WE WANT TO MAXIMISE OUR USE OF THE DIGITAL APPROACH AND SEE OUR PLATFORMS AS A KEY WAY TO REACH CUSTOMERS ESPECIALLY IN THE RURAL AREAS // 48 / www.enterprise-africa.net

“Looking at how as a country to become more economical and sustainable, addressing unemployment and financial inclusion - these are key things which hold a lot of promise, and we are relishing the chance to be part of this next phase upon which the country is embarking.”

REACHING REMOTE CUSTOMERS The move to Lesotho gives Nicolaisen a unique ability to assess and compare the two modes of operation, drawing some surprising conclusions along the way. “As might be the expectation, in the South African context there are certainly some things which are further ahead,” Nicolaisen says, “but actually, I came into Lesotho and found that other aspects of the business are moving forward much more quickly.”

“I have learnt never to assume that one will automatically be better than the other, because there were some very distinct advancements that the Lesotho team had made that were brilliant.”

Lesotho presents some uniquely

enticing opportunities and dynamics in terms of revolutionising customer experience, Nicolaisen goes on. “It is a country where the majority of the population is still in rural areas. Lesotho is still very deeply entrenched in its culture, which means that we really have to look at how we create value, in terms of financial inclusion, reaching these customers and allowing them to transact financially in the way they wish to do so.”

“I am a big believer in identifying the customer need and then finding the solution for it - not the other way around.”

“There are some definite improvements that we have earmarked in responding to these areas we have identified in terms of customer reach,” Nicolaisen goes on. “We are launching initiatives to give us greater mobility, for example the ‘bank on wheels’ that we are already deploying through the country - a fully functional branch, and a first of its kind.”

“We are also starting to model how our physical representation will

STANDARD LESOTHO BANK

look versus the virtual. We have tilted a little towards the virtual space, using platforms to reach our customers, as opposed to a channel approach.”

PRIORITISING DIGITAL PROGRESS “We want to really maximise our use of the digital approach, and we see our platforms as a key way to reach customers especially in the rural areas,” Nicolaisen reveals of the digital push SLB will sustain. The launch in March 2020 of data-free access on its Standard Bank app and internet banking exemplified this, allowing clients who are Vodacom subscribers to access both platforms at no cost.

“We are extremely delighted to introduce this development during such a critical time when we are facing the COVID-19 global outbreak. This new offering comes at a time when we are encouraging clients to reduce instances of going into branches and ATMs,” said Selloane Tsike, Head of Personal and Business Banking, urging others to join the more than 70% of clients who enjoy

data-free online banking access to the bank’s services at their convenience.

“We want to give our customers easy solutions which they can access not only through a smartphone app, but also through USSD to create an experience for that customer that makes them feel part of the financial system,” Nicolaisen stresses. This combination of platforms, both app-based and those using USSD, combined with high teledensity in Lesotho, will help drive the next digital push for SLB. “We have a new product ready to go which we will hopefully launch this year,” Nicolaisen details. “In this tough business environment it is critical to prioritise and make sure that the customer reaps value from the new initiative. They must actively want to use that solution in order to reap the benefit from a business point of view.”

“This is certainly the case with the platform that we are set to launch, and will spur the constant development of our smart app to keep improving functionality and facility.”

Nicolaisen is the first to admit that there is still some way to go in overcoming old habits. “The preference of the majority of the population is still physical interaction rather than digital,” he recognises.“ However, this gives us real scope to evolve, as long as it is done carefully enough that we bring our customers with us on that journey. Interacting with both the physical and the virtual is going to be key to our success.”

“We want to be a digital, platformbased bank,” Nicolaisen offers in closing.

“We want inclusivity and we want our customers to use our platform. In Lesotho, our aim is to reach each and every citizen in the country in some way.”

“We have made significant strides already on this journey, and we will not stop until we are a truly digital business.”

WWW.STANDARDBANK.COM

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AVBOB

Incomparable Care and Compassion

in Times of Covid and Beyond PRODUCTION: Timothy Reeder

One of South Africa’s best-known and most trusted funeral service providers, AVBOB exists to ensure that the lives of loved ones are honoured with special nurturing, sensitivity and care. The pandemic has ripped through the country and torn apart families; what AVBOB has been able to do, explains CEO Carl van der Riet, is take the spirit of care and compassion cultivated throughout its unique lifetime, stand at the focal point of the trauma and help move people through the devastation and grief.

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INDUSTRY FOCUS: INSURANCE

//

Established in Bloemfontein in 1918, AVBOB has grown over a century into Africa’s largest Mutual Assurance Society, with around 7000 staff providing a one-stop shop for funeral insurance and funeral service. Partly due to its relative affordability, funeral cover has an exceptionally high penetration rate, and of the approximately 55 million population in South Africa, currently more than 7.6 million lives are insured by AVBOB. “AVBOB as a mutual insurance society is the pacesetter in the funeral industry,” the group states.

// WE PROVIDE A MECHANISM FOR FAMILIES TO PROCESS GRIEF, AND TO TRANSITION THROUGH THAT EXPERIENCE // 52 / www.enterprise-africa.net

Across its three operating divisions it provides a comprehensive range of funeral products and services to meet the wide-ranging needs in the market, a full funeral and cremation service via a network of highlytrained staff and a factory in excess of 14,000m² where an extensive range of coffins, wreaths and fittings is manufactured.

Of course, death and the associated funeral is not something one wants to ponder at length or often. However, even in circumstances not akin to those we have seen since March 2020, in reality every person will at some stage go through this process, and in South Arica a high mortality rate together with the level of importance placed on funerals by the majority of the population, have combined to give rise to a large funeral services industry.

The sub-sectors within the industry are substantial too, among them a vibrant funeral supplies sector provides such items as family cars,

flowers, catering and clothing. The funeral service market operates on a national level as well as regional and local levels.

Elaborate burials are still a significant status symbol to many in South Africa, spawning a funeral insurance industry valued at somewhere between R7.5bn and R10bn per annum. A funeral can be a hugely expensive exercise costing anything from R12,000 to R100,000 - and as such it is today the most popular insurance cover in South Africa.

UNIQUE IN APPROACH “Ours is the largest funeral service operation in the country,” AVBOB CEO, Carl van der Riet, states. “We are national, with around 350 branches across the country targeting low, middle- and high income markets.

More than simply the biggest, being an integrated insurance and funeral service operator makes us truly unique in the country. Where other

AVBOB

insurers stop at the point of a claim, that’s where our full-service kicks in and we fulfil the complete need of our clients.”

“The second way in which we are unique is that we are a mutual,” van der Riet adds. “In South Africa, contrary to the UK or Europe, this is really rather rare; there remain only a very small number of mutual insurers in South Africa. With it comes the absence of shareholders - instead we are entirely owned by our members, the policyholders.

“All of the excess profits generated from operations and investments, are returned to the policyholders through special bonuses and free funeral benefits.

This is a unique model in South Africa and it makes our goals very focused and aligned; we do not have split loyalties between extracting value for shareholders and trying to provide value to customers - everything is focused on the policyholders.”

The approach has been crucial in shaping the company, van der Riet stresses. “Our mutual ethos pervades everything that we do.”

This ethos has another important knock-on effect, he goes on.

“We also have a very important corporate social investment (CSI) drive, whereby we believe that we are not here only for our customers, although paramount, but also for the communities that we serve. We

have a range of initiatives that we are pursuing, from enterprise and supplier development through to active investments in education.

“This even extends to more unusual, cultural programmes, such as our flagship national poetry competition that we run every year in 11 languages, providing an allimportant, powerful platform for people to express themselves in their mother tongue.”

Shipping containers also become fully-fledged libraries due to this highly socially-aware, community-conscious spirit, complete with books, computers, solar panels and ventilation. To date, AVBOB has delivered 57 libraries

// OUR MUTUAL ETHOS PERVADES EVERYTHING THAT WE DO //

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INDUSTRY FOCUS: INSURANCE

to underprivileged schools. “The whole ethos behind our significant investments into a wide range of projects and programmes is that we are owned by our members, who are part of these communities.

This drives our core aim - to allow people to participate in the economic benefits from the endeavours that we undertake within their communities.”

CRUCIAL SUPPORT Always crucial to its members, the supportive, caring and compassionate service AVBOB renders has been utterly invaluable amid the devastation of the pandemic and the toll of bereavements it has left in its wake.

“It has been the most incredibly tough year,” says van der Riet. “The convergence of all the various factors was, however, a perfect reminder of why it is we are in this business, and brought home a real sense of purpose.

“I often say that it is at times of real stress that character is truly revealed, and for me, as a business and as a country we have gone through a huge amount of trauma which has evidenced the real character and purpose of the company.

“Funeral services, as a sector, is still often misunderstood,” he adds.

// AVBOB AS A MUTUAL INSURANCE SOCIETY IS THE PACESETTER IN THE FUNERAL INDUSTRY //

54 / www.enterprise-africa.net

“People envisage the men with tall top hats and dark coats mournfully presiding over the ceremony. This is not even close to accurate - what we actually provide is a mechanism for families to process grief, and to healthily transition through that experience, which can be agonisingly painful.

“As well as the practical side, we offer the advice people solicit, the counselling where required and even the mediation in family disputes

AVBOB

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which do arise; we help people to come to terms with bereavement, which then leads to closure and allows people to move on in their life. What we do, helps people to heal and move forward and this is our true value.”

AVBOB is well-versed in adversity: its formation came about at the same time as swathes of soldiers bringing back Spanish Flu at the end of the First World War, one of the worst viral epidemics of modern times, and the ensuing wave of deaths. The culture

// I OFTEN SAY THAT IT IS AT TIMES OF REAL STRESS THAT CHARACTER IS TRULY REVEALED //

of the organisation and its deeply ingrained principles allow it to stand firm and resolute among the most intense adversity, van der Riet says.

“Over time, and almost unnoticed, people are made to feel like they belong, and part of the family. That results from the sense of commitment and belonging, and of integrity in what we stand for. This has been a key differentiator in our culture and among the people that we have in AVBOB.” Taking such good care of its people has paid real dividends, and as it moves out of these darkest of times, AVBOB will be able to gather together the strength and knowledge accrued over these trying months to bring comfort to many more people in their time of need. “In these extraordinary circumstances,

2021/10/06 16:05

not once did our staff complain, and we are very proud of what they have accomplished,” he closes. “Clearly we are growing, and have been stretched, but it seems that this increased market share is continuing and sustaining, rather than subsiding after the waves.

“We will endeavour to employ the best aspects of technology, but never to the detriment of the empathy for which we are known.

Most important is to continue building our physical infrastructure to retain the human contact we value so highly. That is what family is, ultimately.”

WWW.AVBOB.CO.ZA

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EOS CAPITAL

Maximising Returns

While Driving Namibia’s Growth PRODUCTION: Timothy Reeder

A Namibian private equity fund manager, Eos Capital’s mission is to provide attractive investor returns and sustainable impact in Namibia and the surrounding region. The firm has three important funds, all at different stages of development: Allegrow, NIDIF and Euphrates. With Allegrow having reached its exit strategy stage attention now turns to the second and third: the Namibia Infrastructure Investment and Development Fund (NIDIF), and the newer Euphrates Agri Fund, both driving lucrative investor returns as much as they are the overall growth and strength of the Namibian economy. www.enterprise-africa.net / 57

INDUSTRY FOCUS: FINANCE

//

In Greek mythology, Eos refers to a new dawn, which the company explains is aligned to its purpose. “We aim to bring new life to portfolio investments through capital and management support which allows them to grow to their full potential,” Nicole Maske, Eos Capital Managing Partner, states.

“We are a private equity firm,” explains Maske of Eos’s core operations, “which means that we essentially take investors’ money, invest it into private markets and projects and deliver attractive returns. That is the essence of our business.

“We strive to be the leading Namibian private equity player that manages funds across the region, is the first choice for investors, is the preferred financier for companies, and is a magnet for exceptional people.”

Its mission is to achieve these aims while contributing to the growth of the Namibian and regional economy, the second of the overarching aims set

58 / www.enterprise-africa.net

out at the formation of the company, according to Maske.

“We said to ourselves, how can we make a difference in the country through the skills we have?

The obvious way, perhaps, when people want to effect change and drive progress is by going to work for government, but we felt that we could do it alternatively, contributing by growing the private sector and the country through its infrastructure and agriculture development.”

The new Allegrow fund is Eos’s first, primarily a growth and operational development fund with a Namibiaonly mandate. “It is a general private equity fund,” Maske says, “which is fully deployed, putting us in value creation and exit mode. We have nine investments here and had around US$30 million to invest.” With this fund now making investments and unlocking the full potential of Namibian companies, attention now turns to Eos’s second and third.

INFRASTRUCTURE IN FOCUS The Namibia Infrastructure Development and Investment Fund (NIDIF) is another Namibia-only fund, geared specifically toward investing into and developing infrastructure assets.

“We look to invest in new or existing infrastructure projects across the country,” Maske says, to form a portfolio that provides robust, low volatility income yield over the long term.

Eos penned its second deal this year from NIDIF – its maiden infrastructure-focused investment vehicle – through an agreement to buy solar energy and commercial refrigeration company Energy Partners (now Energy Utilities) which builds, operates and maintains solar and refrigeration assets in Namibia. Part of a larger group that also has operations in other regions of Africa, notably in South Africa. The company was founded as Bokstone Solar in 2014 to create a portfolio of assets in rooftop solar photovoltaic installations.

EOS CAPITAL

Last year, Energy Partners South Africa acquired a stake in Bokstone and consolidated its assets into Energy Partners Namibia. “We were originally attracted by the company’s stable and consistent cash flows,” Maske explains.

// IT IS PROVEN THAT GROWTH IN THE AGRICULTURAL SECTOR HAS A MARKED KNOCKON EFFECT ON JOB CREATION AND A REDUCTION IN INCOME INEQUALITY //

“The NIDIF fund is targeting investment in infrastructure projects in Namibia through a mix of equity and mezzanine funding, and energy is a keen focus sector for us along with water, communication and technology, transport and logistics, healthcare and education.”

KELP BLUE The Kelp Blue investment follows Eos’s acquiring minority stake in Erongo Medical Group, a Namibian private healthcare group which owns the Welwitschia Hospital and has interests in radiology and telemedicine as well as Erongo Radiology, a leading provider.

Eos Capital will also manage the partnership between Climate Investor Two (CI2), managed by Climate Fund Managers (CFM), Kelp Blue and NIDIF to facilitate the commercial development

of the world’s first large-scale kelp farm.

Over a five-year period, investment of approximately US$60 million will be required, funded by both international and local Namibian sources through CI2 and NIDIF. “Kelp Blue’s business model will add value across the entire kelp value-chain,” reasons Maske. “The introduction of offshore engineering innovations and novel processing technologies will reduce overheads and increase scalable process efficiencies.

“Economic development will be promoted through the creation of value-added products in Namibia for local consumption and export,” she carries on, factors which align it succinctly with Eos Capital’s, and specifically the NIDIF’s, shared mission of furthering the development of the Namibian economy. This also allows the

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INDUSTRY FOCUS: FINANCE

job creation aspect so at the heart of Eos’s philosophy to be comprehensively fulfilled, Kelp Blue explains.

“During our starting phase we will be generating 15-20 direct jobs in biotechnology, engineering, factory support services and logistics. An additional 80-100 indirect jobs will be created, with half of these posts potentially being permanent.

“After our successful launch, a further 400 direct jobs and 2,000 indirect jobs could potentially be generated by this project.”

Kelp Blue will cultivate giant kelp in nutrient-rich waters 3-10km off the coast of Namibia, near Lüderitz, helping remove CO2 while boosting marine biodiversity and improving fish stocks. The seaweed canopy will then be properly harvested to produce alternative agri-food, bio-stimulant and textile products.

“In addition to the positive impact on our ocean and our local fish stocks, this is an exciting opportunity to add to the infrastructure and growth of Lüderitz, thereby enhancing prospects

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for the local community, and to secure inward investment into Namibia on an environmentally responsible basis,” Maske summates.

ADDRESSING AGRI CHALLENGES The third of Eos’s funds to date is the Euphrates Agriculture Fund, which aims to facilitate the industrialisation of the agriculture sector, deliver social impact and provide medium-term

returns to investors. “We are currently fundraising for this latest fund,” Maske explains, “to allow us to invest across the entire value chain of agri, again with a Namibia focus”.

“It is the first Namibian agriculture private equity fund to stimulate the sector through growth investments in climate-adapted, technology-driven projects which impact the entire value chain.” The fund aims to raise N$1 billion

EOS CAPITAL

(US$70 million) to address the challenges faced by the agriculture sector in Namibia, and focus on improving productivity and sustainability.

“Again, with this fund we have the balance between the return aim and the social aim,” Maske says. “We see a gap in the country in the funding landscape, where we have good projects with debt funding available, but not equity funding, and as a result they are not ultimately able to reach fruition. We see that as holding real potential for us.

“The social impact that we can have is also significant. It is proven that growth in the agricultural sector has a marked

//EUPHRATES WILL SERVE AS A CATALYST TO INDUSTRIALISATION

BY PURSUING QUALITY ASSETS AT ATTRACTIVE PRICES //

knock-on effect on job creation and a reduction in income inequality. We are really trying to spark the sector to start growing as these will be vitally important for the country moving forward.”

Agriculture is arguably among the lesser known of the wealth of investment opportunities available today, but offers one of the strongest options for long-term wealth growth.

With the world’s population projected to increase again by more than 35% by 2050, prioritising investments in farmland is crucial as farmers across the globe will increase crop production, expanding the amount of farmland in use and enhancing productivity on existing land.

“The launch of this Euphrates Agri Fund comes at an opportune time, when public and private sector need to integrate and coordinate efforts in the promotion of investment in the agriculture sector,” summarised Mesag Mulunga, attending the inauguration on behalf of Percy Misika, Executive Director of the Ministry of Agriculture, Water and Land Reform.

“Eos Capital’s strategy and decision for launching the Euphrates Agriculture fund is to address the challenges faced by the agriculture sector in Namibia,” explains Maske, “and to focus on boosting its productivity and sustainability by means of an unlisted manager solution.

“Our mission is to contribute to the growth of the Namibian economy and the Agri fund will take us a step further. It will be attractive to investors seeking diversification and investing into real assets that provide a hedge against inflation.

“Agriculture is a diverse asset with a broad range of risk/return profiles and characteristics, offering options and diversification. Euphrates will serve as a catalyst to industrialisation by pursuing quality assets at attractive prices, seeking to maximise returns over the long term.”

WWW.EOSCAPITAL.COM.NA

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IMARA HOLDINGS

Local Knowledge Leads Imara to Back

Africa’s Fintech Revolution PRODUCTION: William Denstone

The combination of deep local knowledge, experience and on-the-ground contacts together with international expertise is Imara’s key to accessing the opportunities Africa holds.

Expedited by Covid-19, it is the Fintech and e-payment revolution currently underway on the continent into which Imara is pouring its more than 60 years’ history in Africa.

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INDUSTRY FOCUS: FINANCE

//

As one of Africa’s leading independent financial services groups, engaged in asset management, investment banking and fiduciary and administration services, it is arguably the depth of Imara’s local roots, and the extent of its experience and expertise of working in Africa that has propelled it to the top.

“Imara has been around since the 1950s,” opens joint CEO Harry Wulfsohn, “originally as a stockbroking business in Zimbabwe, and has since evolved into a more diversified pan-African, asset management and advisory group.”

Since 2017 the business has been private and backed by Wulfsohn, business partner Hector Fleming as joint-CEOs and majority shareholders, and a handful of other families dotted around the world. “All our shareholders have deep knowledge of both financial services and Africa, so add great value and provide a long term and stable shareholder base,” Wulfsohn explains.

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ADEPT AFRICAN OPERATORS “Around 10 years ago Hector and I formed a two-family office - Fleming Wulfsohn Africa - to source investment opportunities in Sub-Saharan Africa on behalf of our families and other families who wish to co-invest with us.

Our families have a combined history of more than 100 years building and managing businesses in Africa and international financial services groups.

“We, together with a number of other families, split between the US, the UK and South Africa, collaborated through an investment vehicle to make an offer to Imara, listed on the Botswana stock exchange at the time. We ended up buying 92% and delisting the business. Imara with eight offices in Africa and over 100 people, provided us with significantly more on the ground resource and access to develop our strategy for Fleming Wulfsohn Africa.”

The pair’s involvement in Africa is far from random, Wulfsohn explains.

“I was born in Zambia, my parents in Zimbabwe and Zambia and my

grandfather was a Russian immigrant into what was then Northern Rhodesia in the 1920s. He founded an African family conglomerate, Susman Brothers & Wulfsohn, with 2000 employees in five African countries including large scale agriculture (300,000 acres, 26,000 cattle, dairy, piggery, crops), 30 butcheries, abattoirs, 150 retail trading stores, wholesaling, hardwood and softwood timber mills, hotel, garage, blanket manufacturer, real estate and financial services. Later the family founded Trans Zambezi Industries, a listed sub-Saharan industrial holding company with 8200 employees in the 1990s. Raising capital for Sub-Saharan companies from major US institutions active in emerging markets, including five IPOs of African companies on two African exchanges and a European exchange.”

As for his business partner, Hector’s father, Adam Fleming, moved to Johannesburg in 1990 to set up what subsequently became Fleming Martin & Co, a subsidiary of the Robert Fleming Merchant Bank.

Through relationships built up across

IMARA HOLDINGS

the continent, the family started co-investing in other businesses including mining, real estate and agriculture and still has holdings in more than 10 separate businesses across six different countries in Africa.

“The real vision for us is finding ways to attract international capital into Africa,” Wulfsohn explains, “by identifying a range of interesting, niche investment opportunities and, at the same time supporting local entrepreneurs and local communities as well as maintaining a very positive environmental and social impact in everything we do.

“Clearly there are big challenges in Africa,” he recognises, “but you have 55 countries all pushing and pulling in different ways. Despite the negative PR Africa receives, especially internationally, there are still excellent opportunities to

be found in select countries and if you focus on the right sectors returns can be achieved with less risks than many investors might think.

Wulfsohn reasons. “It is important that Africa is viewed through the right lens or it risks being consistently dismissed by international investors.

Africa is a youthful frontier story that has a long runway for growth uncorrelated to the rest of the world. The real story is the fortune at the bottom of the pyramid. It is not a middle-income opportunity. This market is there right now and it doesn’t depend on politicians, commodity prices or even a growing middle class. It depends on finding the right company that is sensitive to these consumers’ needs by delivering a product that is good quality, offers convenience and at the right price point.”

TRANSITION TIME Wulfsohn pinpoints that the most important trend driving growth across the Continent is the shift from the informal to the formal sector.

“This is a natural evolution from traditional methods/informal markets to modern markets. This is by far the most important trend and explains why Africa is an opportunity now and not in the future. This is a domestic, consumer theme. There is a market right now that is underserved and

// COVID IS A POSITIVE TAILWIND FOR THE E-PAYMENT REVOLUTION IN AFRICA //

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INDUSTRY FOCUS: FINANCE

// OUR VISION IS TO FIND WAYS TO ATTRACT MORE CAPITAL INTO AFRICA TO ACHIEVE BOTH RETURNS AND POSITIVE ESG //

underpenetrated. Estimates of the size of the informal and illicit market in Africa range from as low as 25% in South Africa to as high as 70% in Nigeria (according to the IMF).

Historically, this was a market that was perhaps overlooked by some during the colonial period. Postindependence however, it is a market that is getting a lot of attention. With the diaspora returning home to play a key part in management and directing local solutions and innovation we are seeing a lot of exciting products that address the needs of this segment.

The companies that serve this market with quality, convenience and affordable products have a large revenue stream, with economics that can match conventional premium or mainstream markets. You are talking cash displacement technologies, formalisation of retail, subsistence to commercial farming, raw/loose milk to processed milk, home brews to packaged opaque beer. We devote

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most of our time to finding such companies that can turn this revenue into profit. Companies that can do this have a long runway for growth,” he explains.

“It is all down to an intimate understanding among the management of the local market.”

Maggi seasoning, owned by Nestlé, is an excellent example of the power of domestic wisdom proving the key to success. “The 250g bag was not selling. Nestlé’s local Nigerian management team realised that people are paid daily or weekly, and cannot afford this sort of outlay in one transaction. Changing to 5oz or 10oz cubes now sees it flying out of the door - such a simple tweak of the same product to a different size has come from an understanding of the domestic economy.”

E-PAYMENTS One of the major transitions, which Wulfsohn and Imara believe is the big

investable theme taking off in Africa, is the transition from cash to e-payments.

“The e-payment revolution is bridging the massive gap between the relatively high cell phone and internet penetration on the one hand, with the very low non-cash payment penetration on the other hand – it is any technology that helps consumers and merchants transact payments electronically rather than with cash.

Think PayPal, Visa etc. Supporting this financial inclusion clearly also has significant positive social and financial benefits for the whole local communities. By catching early this emerging trend of consumers away from cash, we have compounded our money at over 45% per annum over two years,” Wulfsohn explains.

“This e-payment revolution has already taken off - but the steepest part of the adoption curve lies ahead,” he continues. “Like cell phones before, it’s not about if or when, but how much African fintech

IMARA HOLDINGS

will grow. In Egypt, Point of Sale (PoS) device growth is +100%, yet only 2% of payments are digital, with only 300 PoS devices/100k pop, contrasted against Brazil at 8% and 2,500/100k; and Brazil is not standing still. Convergence of technology, a youthful population, government support are underlying drivers.

Our process identifies Africa’s high quality, fast growing and attractively valued Fintechs. These companies tap the whole population pyramid, generating small, recurring revenue streams, whose profitability increases exponentially with scale.”

Cell phone ubiquity across Africa points us to the endgame. At the start of the century, cynics asserted that cell phones were a luxury few in Africa could afford. Thanks to cheaper handsets, 80% of Africans have a cell phone, creating tremendous utility for customers and wealth for investors.

Financial inclusion, driven by Fintech, banks and telcos, is following a

similar pattern. Cell phones have also provided consumers across the whole pyramid with a platform to transact.

The enormous opportunity is for Fintech to bridge this gap between the level of cell phone and digital payment penetration.

Covid is another key to the lock.

The technology adoption curve is tantalizing, but each stage has a lock and finding the key is tricky.

Lockdowns forced first time consumer adoption, paying for essentials as well as service providers onto payment platforms to reach customers. Covid can be spread on cash - this further drives adoption as governments lean in to curb the spread. For example, in Morocco, government added surcharges on cash purchases at tills.

In Egypt, payment of government employees switched from cash to card, and there are plans afoot to allow pensions to be paid into mobile wallets and promotions for merchant PoS adoption. In Kenya, electricity

smart meters, mobile money and the utility are linked in real time to avoid queues in stores. Foreign remittances direct to mobile money wallet or bank accounts are keeping people out of physical outlets.

Wulfsohn concludes: “We target high quality companies with scale-able technology, low customer acquisition costs and have long and wide runways for growth. We also see tremendous value unlock as banks and telcos spin off their fintech arms on substantially higher multiples.

All the companies we invest in are growing at over 50% annually, are the market leader in their country but unlike many of their global peers are already profitable and at attractive valuations.”

WWW.IMARA.COM

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SINDI MABASO-KOYANA

AWCA INVESTMENT HOLDINGS

Accelerating Economic

Empowerment for Women PRODUCTION: Timothy Reeder

African Women Chartered Accountants (AWCA) proudly supports the entry of young women into the historically almost impenetrable chartered accountancy (CA) profession. Having overcome exactly the struggles with which AWCA exists to assist, inspirational Founder, Sindi Mabaso-Koyana talks us through some of what makes the organisation so special and valuable to aspirational women who are mentored and supported throughout their journey of becoming CA and even beyond. To ensure the long-term sustainability of what AWCA does, a commercial arm of AWCA was formed and AWCA Investment Holdings (AIH) was birthed. The success of AIH paves the way for more and more women to participate in the economy. www.enterprise-africa.net / 69

INDUSTRY FOCUS: FINANCE

SINDI MABASO-KOYANA & JESMANE BOGGENPOEL

//

Established in 2008, AWCA Investment Holdings (AIH) is unique: a 100% black women owned and managed investment company. Operating as a holding company investing in companies across South Africa, a wealth of financial skills and strong business networks allows AIH to unlock deal

// THE ETHOS OF OUR BUSINESS IS TO ENSURE THAT WE EMPOWER NOT JUST OURSELVES AS SHAREHOLDERS, BUT ALSO CAUSE THAT ECONOMIC IMPACT TO REACH OTHER WOMEN // 70 / www.enterprise-africa.net

flow and closely work with a financial services, industrials, mining, and logistics investment portfolio.

“AIH shareholders are predominantly black female chartered accountants,” the company outlines, “and the ultimate aim is to unlock and create stakeholder value for the empowerment of previously disadvantaged women in South Africa.”

ACCELERATING CHANGE Historically, the accounting profession has been slow to keep pace with the transformation witnessed across industry in recent years and decades. The first female Chartered Accountant (CA) qualified in 1917, and it took another 70 years for the profession to welcome its first black female CA in 1987.

When AWCA was launched 17 years ago, African, Indian and Coloured (AIC) female CAs numbered just 407 of a total population of 20,903 - only 2%. The sustained efforts from various stakeholders has seen the much-needed

transformation gain momentum, and as of June 2019 AIC female numbers represented 15% of the total.

“AWCA is a forum committed to accelerating the advancement of qualified and aspiring Black Women Chartered Accountants,” the organisation summarises, “through the provision of active support, personal development and access to opportunities.”

Its commercial arm, AIH, is made up of 53 black women shareholders, among them many chartered accountants and captains of industry with competences across a range of sectors and provinces.

At its helm as Group Chairperson is Sindi Mabaso-Koyana, herself a CA by trade with a passion for transformation and governance in the workplace.

An illustrious career has seen Mabaso-Koyana appointed as Managing Director of Viamax Logistics, Group CFO of Transnet, Executive Partner at Ernst & Young, and serve on a litany of boards including Transnet, South African Institute of Chartered Accountants, MTN and Toyota.

AWCA INVESTMENT HOLDINGS

“I have always been positive about Africa’s economic prospects and I never hesitate to play the role of evangelist for entrepreneurship,” she explains. “I love investing in people and mentoring the generation to follow.”

The principle of skills development and the accelerated advancement of African Women CAs in South Africa was a central premise on which AWCA was founded, directly reflected in AIH’s own vision. “The ethos of our business is to ensure that we empower not just ourselves as shareholders, but also cause that economic impact to reach other women,” she explains.

“When we first came together in 2002 it was as a non-profit organisation, having observed the challenges associated with building and growing the number of black women CAs in the country. In 2008 we then formed the commercial arm which became AWCA Investment Holdings, and ever since we have been operating as a BEE women’s grouping.”

PRIVATE EQUITY SUCCESS “One challenge we have encountered,” Mabaso-Koyana shares, “is that to access deals competitively it is essential to have a pot of money readily available. Most of the time we are required to provide a contribution, perhaps 10% - known as ‘skin in the game’. That portion in a deal of, say, R100 million, is not readily available to us, given that most of us do not have generational wealth and have been professionals most of our lives investing in our homes and education for our extended families. So, we have been able to build wealth that allows you to write the cheque of R10m with ease. It grew to become an important factor in our being a relevant and respected women investment company to have funds available to invest in a rich pipeline we are exposed to.

“We are very excited to have just launched our private equity (PE) fund in response,” Mabaso-Koyana unveils. The resultant AIH Capital, fund manager of AIH Fund I, is a generalist private equity

fund, the principal investment objective of which is to make equity-related investments in companies that are primarily mid-sized and privately held.

“Our private equity is unique,” Mabaso-Koyana continues. “Usually individuals must be principals, whereas our funders have allowed an organisation to also be a majority shareholder, in this case AIH, in the PE structure. We are trailblazers in that in that our private equity has a company with 53 other shareholders set to benefit from the fund.

“We are proud of this as it allows us to continue with our broad-based approach to our model. Not only will the 53 women in AIH benefit, but also AWCA, the non-profit, as a 10% beneficiary of AIH. “AIH Capital will be a key catalyst for increasing the participation of

women in the economy, through leveraging their competitive advantage of a unique combination of demonstrated strength and depth and breadth of skills in investments, governance and financial management.”

ROLE MODELS “It is important that we invest in businesses with excellent management, among the best in their industry. We look for well-respected, medium-sized companies that can compete with the major players, which are well run and boast good business practices.

Reputation, values and culture are also key, as we only want to associate ourselves with exemplary businesses with spotless track records,” Mabaso-Koyana further outlines of AIH’s approach.

Inspiring at every turn, there are numerous programmes and initiatives

Our consulting division offers business case development, costs estimate throughout concept, desktop, pre-feasibility and feasibility studies in line with industry best practice front end loading best processes.

In addition, our service offering includes long term business planning, post investment reviews, post implementation reviews, financial modelling, financial model reviews, costs estimate reviews and business case reviews.

In our corporate finance division, we offer company valuations, transaction advisory, deal origination, due diligences, project and balance sheet finance advisory.

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INDUSTRY FOCUS: FINANCE

within AWCA geared toward strong mentoring and leadership priorities, Mabaso-Koyana relays.

“A lot of what we do in AWCA surrounds creating awareness for young women. When we started in 2002,

// WE ARE STICKLERS FOR ETHICS AND EXCELLENCE IN EVERYTHING THAT WE DO, AND WE ARE PROUD TO STAND FOR THESE PRINCIPALS //

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there was still a lot of work to be done to bring the idea of forging a career to the forefront of the thinking of young girls in the townships. This was not an attainable career for them 20 years ago, and so having qualified ourselves as chartered accountants it was then up to us to act as the role models for what was, and now is, possible.

“Once we have mentored and trained aspiring CAs, we also have leadership programmes to engender success in specific roles and business acumen,” Mabaso-Koyana highlights of a central tenet of AIH’s commitment to giving back. “Skills development is central to the ethos of AWCA, and we are proud as AIH that the one distribution that we have made is to AWCA, in the

form of bolstering their bursary fund.”

Since its establishment in 2005 the AWCA bursary programme has assisted 124 aspiring accountants to attend university where this would otherwise have been unattainable. “All bursary students are given access to AWCA mentorship, roundtable and celebrate success initiatives,” the organisation explains. “They receive turning and guidance where needed, so as to endure their academic progress, as well as to build and strengthen their leadership and other skills.”

THE UNTRODDEN PATH Mabaso-Koyana knows well the value of effective support and tutelage, and how transformative this can be in unlocking

AWCA INVESTMENT HOLDINGS

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potential and attaining the previously unattainable. “I was very fortunate to be a founder of AWCA alongside three of my colleagues Zodwa Manase, Sindi Zilwa and Tshidi Mokgabudi. Having grown up in the township of Durban where we had no guidance on what grades and subjects would secure our futures, sometimes even discouraged from aiming too high. When starting AWCA, I therefore felt it key to role model ourselves to those young women in rural and township areas.

“Having grown up in difficult circumstances, I knew I would have to give back to the whole community which brought me up alongside my family. Everybody looked out for us and this whole culture of discipline, care and support really contributed to what I ended up becoming. I also know the significance of financial assistance, which meant

that I was able to pursue my studies and become a chartered accountant.”

The gratitude she felt later heavily shaped Mabaso-Koyana’s career path, she recounts. “It is for this reason that I have spent most of my career in the public sector,” she says. “I really appreciated the fact that, without our government bringing in the new era of democracy, a number of us would have been unable to pursue the careers we ended up following.

“It was thus natural for me to have moved to form this broad-based investment company. Even when we launched our PE I insisted upon a broad base, which is so unusual.” It is however typical of an ethos and philosophy which has already inspired so many to strive to fulfil their aspirations, whatever the setback, and will do for so many more young women to come.

“I generally do things my own way, as long as I know I am doing the right thing,” Mabaso-Koyana concludes. “I’ve always had this compulsion to take the least easy option available - my ethos has always been to take the unchartered path. We want to develop women to be the best that they can be, and are sticklers for ethics and excellence in everything that we do and proud to stand for these principals.

“I always say to the team: you need to make sure that you have developed and grown beyond your own imaginable dreams when you look back at how AIH has touched your lives.”

WWW.AWCAINVEST.CO.ZA

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GROOTE SCHUUR HOSPITAL

Leading the Fight Through Innovations in

Process, Service and Leadership PRODUCTION: William Denstone

Groote Schuur Hospital has taken many lessons from the onslaught it has faced as a result of the Covid-19 turmoil. Tested like never before, it has risen to every challenge with aplomb, demonstrating the innovation, leadership and adaptability that has kept it world-renowned since gaining international spotlight more than half a century previously. “Our vision is to lead innovative healthcare at Groote Schuur Hospital,” proclaims CEO Bhavna Patel.

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INDUSTRY FOCUS: HEALTHCARE

//

Nestled in the slopes of Devil’s Peak in Cape Town is Groote Schuur Hospital (GSH), the renowned training ground of many of South Africa’s finest doctors, surgeons and nurses. The facility was officially opened in 1938 in Observatory, just a few minutes from the main University of Cape Town campus, and found global fame in December 1967 when young UCT-educated surgeon Dr Christiaan Barnard completed the world’s first successful human heart transplant.

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As the hospital has gone on to grow and build new wings in the years following the ground-breaking operation, the theatres in which the operation took place have been carefully preserved for posterity in the form the Heart of Cape Town Museum.

Tourists are taken through the entire process, culminating in Washkansky’s receipt of the donor heart via a gruelling nine-hour operation necessitating the skills of over 30 medical personnel.

Since the first successful implementation of this major medical procedure it has saved tens of thousands of patients’ lives in every corner of the world. It remains one of the hospital’s primary specialisms, where strengths otherwise lie in transplant services and cancer care as well as specialities in all medical and surgical sub-disciplines, psychiatric, neurosciences, obstetrics, gynaecology and neonatal care.

A LEADING INNOVATOR “We are well-known for performing the first heart transplant worldwide,”

// WE NEED A HEALTH SYSTEM REDESIGN AND RESTRUCTURE THAT IMPACTS EVERY ASPECT OF THE SERVICES ALONG THE ENTIRE PATIENT JOURNEY // recognises CEO Bhavna Patel, “but we always say that this is not the only thing that has put us on the map.” Patel has stood as GSH’s CEO since 2013, and is also a specialist a specialist in family medicine and public health after working as a General Practitioner for 10 years.

“Since 1967 we have done so many other things that make us proud as a hospital, and so many other innovations have also since come to the fore.” GSH enjoys a partnership with the University of Cape Town, Patel’s own alma mater,

GROOTE SCHUUR HOSPITAL

ranked by several international and authoritative indexes to be the best university on the African continent and among the best 200 universities worldwide.

“GSH is a specialist and subspecialist hospital, and we are very closely linked to the University of Cape Town and provide the teaching platform for their undergraduate and postgraduate students,” offers Patel by way of further background, “as well as a platform for research.

“Clinical services, teaching, training and research - these are our primary activities. As an academic health centre, we strive to provide outstanding tertiary and quaternary care for the patients of the Western Cape and beyond, and promote excellence in teaching and research.”

This goes hand-in-hand with GSH’s overarching vision. “Leading Innovative Healthcare” it asserts, admitting some 80,000 inpatients

per year and around half a million outpatients, and performing 25,000 operations all of the more complex, higher acuity nature.

“We are the only hospital in the country where authentic quaternary procedures like heart transplants are taking place,” Patel details. “We also perform liver, kidney and bone marrow transplants and have started a lung transplant program as well as other high-end procedures such as the transcatheter aortic valve replacement and laparoscopic surgeries.

“There are many examples of activities where we are the only public sector hospital offering the services.” With 80% of the population accessing public, rather than private, healthcare, reaching every citizen with the same level of care is becoming a growing concern across the whole of medicine and healthcare, and GSH is leading the way in its ground-breaking service.

LEARNING COVID LESSONS “Apart from priding ourselves on innovation,” Patel goes on, “we are very focused on exemplary and effective leadership, making sure that the hospital functions well and the patients receive the very best care.

“2020 threw us totally overboard,” she admits. “We were turned upside down, and this is really where our leadership came into its own. We had to hold it all together for our staff, make sure that patients were cared for and ensure the availability of the facilities to allow the medical and nursing staff to do their work. We developed a homegrown leadership development programme which stood us in excellent stead, making our managers more resilient, adaptable and able to cope.

“After everything that has gone on we have realised that our priority in 2021 has to be on staff wellness and safety,” she summates. “To this end, we

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INDUSTRY FOCUS: HEALTHCARE

appointed a wellness team to ensure that, as wave after wave batters us, the highest level of support and counselling is provided by our team of psychologists, psychiatrists and occupational therapist specialising in mental health. It has been truly invaluable to morale.

“Our second major point of learning from Covid,” Patel says, returning to the crucial lessons of the pandemic, “was around the major cause of death of people who contracted the virus - over 50% had diabetes and hypertension,” she reports.

// THERE ARE MANY EXAMPLES OF ACTIVITIES WHERE WE ARE ALONE IN SERVING THE PUBLIC SECTOR OF THE COUNTRY // “It brought crashing home that, without drastic intervention, we are going to see more and more young people developing these chronic illnesses, and if we don’t start to tackle this right now then in four or five years time we will have a huge health burden on our hands.”

How are we going to do things

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differently? This was the burning question for all at GSH, and Patel reveals that, like many players in the healthcare sphere, the hospital’s vision is far-reaching. “We started looking at our three- and five-year trajectory post-Covid” she says, “because there is no way that it could continue to simply be business as usual.

“We need a health system redesign and restructure,” Patel declares of the result of GSH’s considerations. “This cannot be solely what happens at Groote Schuur hospital, rather it has to impact every aspect of the services along the entire patient journey - the whole continuum from the clinic, to the day-care facilities and district hospitals and finally to us, a specialised service centre.

“Learning the lessons of the last 18 months - that is our real aim at present.”

LASTING IMPACT These systems and initiatives, whether developed pre- or mid-Covid, have been implemented throughout the hospital and sustained in everyday practice today to bring lasting improvements to crucial areas like waiting times and patient flow.

“Improvement process initiatives like these are vital in offering the staff across the whole hospital a systematic way of dealing with any issues they face,” Patel explains.

“They are able to provide the solutions to the problems they perceive which gives a sense of ownership and pride in what they achieve, and the resulting motivation to continue.”

These seemingly small adjustments go to show how innovating does not always have to mean the latest in science, technology

GROOTE SCHUUR HOSPITAL

or procedures. Ground-breaking accomplishments could just as easily be related to process as to service, quality or strategy, and while not always greeted with international acclaim, all have contributed to improving the quality of patient care

// THE CALIBRE OF OUR PEOPLE MEANS THAT THEY ARE ALWAYS SEEKING OUT NEW WAYS OF DOING THINGS //

provided and received.

Seeking new and different solutions to existing challenges is the crux of innovation, and GSH is in the privileged position of being able to capitalise on the extraordinary intellectual and creative capital of its staff body to transform the way in which healthcare is delivered both within the hospital and more widely.

“The calibre of our people means that they are always seeking out new ways of doing things,” sums up Bhavna Patel. “This has brought us entire lists of hospital firsts in the world, in the country, in the province where we are based and at the hospital itself.

“This should illustrate just how motivated our people feel to try out new things, the openness we promote and the freedom our experts are given to explore,” she closes.

“Always with the best interests of the patient at heart, it boils down to the pride we take in continually finding improved ways of operating, to retain our status as a leader in innovative healthcare.”

GROOTE SCHUUR HOSPITAL

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LOGICALIS SOUTH AFRICA

IT Security Excellence

Centred in SA PRODUCTION: Manelesi Dumasi

Logicalis is busy helping customers to digitally transform as the new working world emerges after the Covid-19 pandemic. In South Africa, a new Security Operations Centre and a drive to develop new business, is bringing about positive results for CEO Frikkie Grobler.

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INDUSTRY FOCUS: TECHNOLOGY

//

The South African IT sector received a major boost in August when global technology solutions provider, Logicalis, announced that it will open a Security Operations Centre (SOC) in South Africa. The SOC will be maintained and manged by Logicalis South Africa, headed by CEO Frikkie Grobler.

Established in 2017, this local arm of a global powerhouse has made great strides establishing itself in the market as a managed services provider. The company has secured several significant contracts with major organisations in South Africa, choosing Logicalis because of its large service portfolio and international partnerships with the world’s preeminent technology organisations.

With the establishment of the SOC in SA, Grobler hopes to onboard many more clients from around the world and develop an outstanding IT security sector in South Africa that is reliable and sustainable.

“Most companies have now realised that they must be able to work from home and they must be digital, and that has opened up a lot of opportunities for us, especially with the cloud,” says Grobler. “The corporate world is thinking differently about IT. Security is a major concern that people are talking about and that opens up big opportunities for us.”

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SA SOC SUCCESS A SOC is much like a multifaceted guarding operation around a secure estate designed to protect homes, but in digital form and taking care of information through cybersecurity knowledge. It is an ongoing effort that requires advanced skills and constantly evolving operations to fend off threats and to be able to respond to security incidents.

“We deliver different services from the SOC including end point protection, managed firewall, web gateway management, security awareness services, authentication services, managed detection response, vulnerability management, mobile management, SIEM Services and more,” details Grobler.

Currently, the SOC is managed by 17 T1 -3 Service Desk Analysts and Security Engineer Specialists servicing multiple customers. South Africa offers a unique prospect with lower operating costs, a highly skilled and scalable resource base, and a versatile team that can be mobilised very quickly.

“It is like a Network Operating Centre (NOC) - where you monitor company networks to see where lines are up and down, and where ports are failing. Constant monitoring issues alerts if there is a breach or an attempted hack. It is more in the software layer. Typically, you monitor

firewalls, and you can see that they are up and running. You can also monitor ports to see that they are closed or if they are being attacked. It’s a first and second line of monitoring that we can handle on the security estate, and the third line is specialised consulting level where our people can simulate an attack on the company and identify vulnerabilities,” details Grobler.

The SOC is managed out of Johannesburg, through a local service desk which can delegate calls to the appropriate engineering functions.

For South Africa, this announcement bolsters the sector and can bring a whole new level of security service to clients in the country.

“Moving the group SOC service to South Africa, we have a funded SOC that we can grow into the South African market,” smiles Grobler. He is also excited about the potential for global expansion as the SOC gives Logicalis South Africa a steppingstone to bigger clients.

“The move of our group SOC to South Africa lead to us being appointed by Liquid Telecom, as a strategic security partner. The security solutions that they sell on to customers will be provided by us and their internal security will be fulfilled by us. The move to South Africa proved that we have the skill and could handle the challenge,” says Grobler.

LOGICALIS SOUTH AFRICA

“If you want to be in security solutions, everyone will ask if you have a SOC service as that is the base of the entire security operation. To build and set it up for future business is quite challenging as it is costly and skill-heavy.”

Building, managing, and maintaining a SOC internally is extremely resource intensive. A costly and time-consuming mission, for most, it makes sense to outsource this function to a player with a reputation for excellence.

“There are so many different skillsets that are required, it becomes very costly very quickly. The average corporate cannot afford to build a great SOC inhouse. The tools are also expensive and, depending on how deep you go, you often need multiple tool sets,” says Grobler.

Such a comprehensive SOC in South Africa has already buoyed the local business, allowing new clients to be onboarded while integrating into the security operations of complex, large networks. Leading food group Lactalis recently signed up with Logicalis, bolting on a range of managed services, seamlessly delivering a truly comprehensive suite of services.

COVID RESILIENCE Logicalis has 10,000 customers around the world, with 6500 people across 27 countries, and annualised revenues of $1.5 billion. During the Covid-19 pandemic and subsequent lockdowns, the company was able to quickly pivot to remote operations, protecting staff but serving customers as normal.

“Covid caught us all by surprise,” he says. “But Logicalis SA was very lucky in the sense that by coincidence we were ready for a pandemic like Covid. From day one, we had designed our systems so they could be accessed remotely from the cloud. It turned out to be a crucial measure, allowing us to continue to help our customers 24/7, despite not being able to access the office.”

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INDUSTRY FOCUS: TECHNOLOGY

This prudent strategy was essential in the switch to remote working. The company closed its offices and within 48 hours the entire company was operational, accessing all systems. But, like most, there were challenges to overcome, with customers facing difficult conditions and looking for support wherever it was available. Logicalis stepped up and provided continuity and stability.

// MOST COMPANIES HAVE NOW REALISED THAT THEY MUST BE ABLE TO WORK FROM HOME AND THEY MUST BE DIGITAL, AND THAT HAS OPENED UP A LOT OF OPPORTUNITIES FOR US, ESPECIALLY WITH THE CLOUD //

“A lot of companies closed down but needed their systems to continue functioning, so we had a lot of assistance programs for our customers, and that obviously has an impact on us as a business. In the longer term, I believe we will have a loyal customer base.”

Partnerships with the biggest international players was essential during this time, allowing the company to switch and change its portfolio as client’s needs altered.

Connected with Cisco, Microsoft, Hitachi, Commvault and many more, has created a wide offering, across multiple price points.

“A critical element of operating a cloud infrastructure is security.

Working with our strategic partners we are able to offer bespoke solutions to our clients with managed services to ensure that they remain secure into the future,” explains Grobler.

The recent addition of Hitachi in their vendor network was a real coup in a time where negativity was all too common.

“In 2020, we became a Hitachi partner. During Covid, Hitachi

// IN THE LONGER TERM, I BELIEVE WE WILL HAVE A LOYAL CUSTOMER BASE // decided to work through a partner rather than going direct,” Grobler details. “They chose us a their partner in South Africa. We employed some of their salespeople and engineers, and that was a long journey. We’ve had some great successes with Hitachi in the market and it has opened doors for us. We’ve had nice deals at FNB, Multichoice and more.

“We’ve been appointed as their exclusive CSP partner in South Africa and that is fantastic as we can now sell managed cloud services in data centres and build data centres, for cloud, for Hitachi. They are invested in us and are making every effort to ensure success with some of the things we are doing in SA as firsts for the country.”

With the third wave of lockdowns still running through South Africa, Logicalis has seen many shelved projects from 2020 being brought back.

“In the corporate world, capital projects were put on hold. They were not cancelled, just put on hold.

Everybody was playing a waiting game,” remembers Grobler. “Our financial year starts 1 March and in the new financial year, we saw a lot of paused projects starting to reignite.

We had an unbelievable Q1 and a fantastic H1.”

A BRIGHT FUTURE Logicalis continues to be enhanced by the fantastic effort it puts into its CSR initiatives. Even during the pandemic, where physical restrictions resulted in campaigns for many companies being cancelled, Logicalis navigated a challenging programme to upskill interns and develop skills in the industry.

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LOGICALIS SOUTH AFRICA

“That was a very successful intern programme last year and we will run that again this year,” confirms Grobler.

“Most of those interns were employed by us or others in the industry and that is a major success during the Covid times as we couldn’t get people into the office to learn.

“We also assisted a few schools with remote learning, setting up firewalls and internet so they could teach the children remotely.”

A shining example comes from the Lenasia Muslim School in Gauteng where Logicalis supplied security

// IF YOU WANT TO BE IN SECURITY SOLUTIONS, EVERYONE WILL ASK IF YOU HAVE A SOC SERVICE AS THAT IS THE BASE OF THE ENTIRE SECURITY SOLUTION //

systems, firewall technology, and updated Wi-Fi connectivity to enhance teacher ability to connect with students remotely.

“We’re very grateful to Logicalis for assisting us with the latest fibre that was able to better position the school for the current reality and for the future,” said Principal of Lenasia Muslim School, Ms N. Suliman.

In the future, Logicalis SA plans to enlist its global partners in further upskilling opportunities. Grobler is in talks with Cisco about a project which could create jobs in areas they are sorely needed.

“Cisco want to uplift youth and we are discussing an initiative where they will sponsor the training and upskill young people in the security world, we will give practical experience and endeavour to deploy them in the SOC when they complete their training.

One of the elements of the discussion is where we set this initiative up.

We want to create jobs in the area where people live as, currently, everyone has to move to Cape Town

or Johannesburg to find employment and then send money back to families in other areas.”

He highlights Gqeberha as an area with potential, but discussions are ongoing. All of these efforts, combined with the excitement surrounding the SOC, as well as the success of relationships and projects that are now coming to fruition make for an exciting business case and one which Frikkie Grobler is extremely optimistic about.

“If the company continues on the current path, and everything the sales people tell me is true, we are going to have a phenomenal year. We will probably double the company this year. We are very excited about what the future holds,” he concludes.

WWW.ZA.LOGICALIS.COM

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VELDSKOEN SHOES

Shining on the World’s

Largest Stage PRODUCTION: David Napier

South Africa’s Veldskoen Shoes is a brand that has travelled worldwide making giant steps into international markets attracting big-name investors. It is a business with a sound model, an ethical conscience, making a stellar product, with a team of leaders who are passionate about South Africa and developing the entire value chain. What’s not to love?

//

On 23 July 2021, Team South Africa romped into Japan’s National Olympic Stadium, Tokyo ready and raring for the delayed but much-anticipated Olympic Games of 2020. As far as opening ceremonies go, Tokyo’s offering was fairly regular – lots of dancing groups, raising of flags, passing of flames and various performances that celebrate the locality of these cherished games.

Teams walked from a tunnel into the central area of the stadium – all relatively expected. That was until Chad le Clos and Phumelela Mbande emerged holding the colourful South African flag.

Eyes quickly shifted away from the squad packed full of sporting stars to the shoes of the lively and vibrant team. Bright, colourful, attractive and energetic – it was different to the other teams; eye catching and exciting. But, this wasn’t the only goal. The product was very South African, demonstrating vivacity and diversity in the country.

Designed by Cape Town-based Veldskoen Shoes, the footwear of the team was the Heritage shoe range. Each with a sole matching the colours of the SA flag. People loved it.

This high-profile spotlight was a second coup for the company which, in 2019, saw Prince Harry touring southern

Africa wearing a pair of Veldskoen Heritage. After just a couple of years in business, Veldskoen was making all the right headlines.

A product of Pretoria Boys High School (of Elon Musk fame), Veldskoen Shoes was established by Nick Dreyer and Ross Zondagh. The two are not your typical fashion business entrepreneurs an art dealer and a builder.

The opening ceremony in Japan was the culmination of years of hard work at Veldskoen that brought the concept of the company full circle from where it started, during a monotonous car journey across South Africa, back in 2016.

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A SOUTH AFRICAN JOURNEY “I was driving from Plettenberg Bay to Cape Town and talking with Ross.

It was around the time of the Rio Olympics,” says Dreyer. “We happened to pass comment that the South African Olympic team should have been wearing something that made them look South African. It became a debate, and we said that they could have been wearing Veldskoen. It’s a colloquial term that has been around for centuries describing a pair of shoes or a wellington boot. It’s an Afrikaans term that translates to field shoe.”

But, for Zondagh, the suggestion was flawed. “We realised that Veldskoen were not actually that cool,” he says.

The light-hearted discussion began snowballing and Dreyer recommended the addition of a new palette. “I’d been to America and bought a pair of shoes that had these bright yellow soles. I said to Ross ‘what if the original, normal Veldskoen had bright coloured soles and laces’. We had a designer who photoshopped some images of Veldskoen with bright yellow soles and laces and then he did the other colours in our flag. He sent it to me and in the same car journey we received these images and found them incredibly exciting to look at. We decided right there and then that we were going to start a shoe business called Veldskoen.

When I arrived in Cape Town six hours later, Ross had already registered the business, as well as putting in an application for a trademark which no one had ever done.”

// WE SELL MORE THAT 100,000 PRODUCTS EACH YEAR AND WE ARE LOOKING TO GROW TO SELLING MORE THAN A MILLION IN THE NEXT FIVE YEARS // 88 / www.enterprise-africa.net

At the time the notion was ludicrous to those who heard it. “I told my wife we were going to start a shoe business and she laughed uncontrollably. Her laughing actually lasted for a few days,” smiles Zondagh.

Paying no regard to anybody’s laughter, Zondagh and Dreyer opened up shop online.

“Neither of us had any experience in fashion, ecommerce or footwear, so we had to learn how to do it ourselves,” says Dreyer.

Eighteen months into the business, it was time to ask for some help. It came in the form of marketing expert, and old school friend, Nic Latouf.

“We knew we needed to market ourselves and we knew that Nic had just moved to Cape Town from Johannesburg, and this was his area of expertise. He immediately recognised that this was something special.”

The three knew each other from school but had grown apart in adult life. This reunion, catalysed by nothing more than a concept, was the start of a sensational journey that would traverse South Africa and then the world.

Dreyer and Zondagh had developed an idea and Latouf was challenged with marketing the product. Based on the design and quality of the product and the ethical approach to business, this was an exciting challenge.

INCREDIBLE, AUTHENTIC Latouf’s marketing strategy repositioned what was traditionally considered an Afrikaner shoe, to a product that celebrates the entire rainbow nation.

They began telling a new kind of Veldskoen story, and using imagery on Instagram that was very different to what people had experienced from a shoe company.

Campaigns were open and collaborative, and shared the spotlight with other local brands.

The choice of models was representative of the South African population. The message was journey, discovery, aspiration, by looking at something through a new lens.

The brand evolved into the ‘shoe for everyone’ and subsequently this also became one of Veldskoen’s international taglines.

VELDSKOEN SHOES

INTERNATIONAL SUCCESS Aided by early investment from Long4Life, the brand was able to begin its international expansion within two short years of inception. “We launched in the UK straight away,” says Dreyer.

“We built a site, we took shoes there, and it took off very quickly.” The Prince Harry sightings helped here. “It gave us a huge bump when he said was a fan of the shoes.”

Made in a family-run, locally-owned factory in Durban, using premium natural materials and manufactured by people who earn well and are ethically treated, Veldskoen Shoes are made with sustainability at heart.

The next step in the company’s blossoming story came in the USA where a major leap was made as breathtaking new investors were quickly onboarded, taking stakes in the local

business. “We capitalised the business and then completed a transaction in the USA which made Ashton Kutcher and Mark Cuban part of our investment team for the USA business. That was exciting and put us on the front pages of many magazines and newspapers globally,” says Dreyer.

By Q3 2019, Veldskoen was more than a concept and the business was beyond a start-up. Dreyer, Zondagh and Latouf had succeeded in taking their brand, and the interwoven South African stories that go with it, to a global audience. But, the disaster that no one predicted was around the corner and about to completely unlace retail and B2C markets.

“We were a decent sized business, selling a good number of shoes each year, but we got hit by Covid. It meant we had to rethink our strategy in terms

// I’LL NEVER FORGET THE WAY I FELT WHEN I SAW THE PICTURE OF THE SHOE THEY HAD DEVELOPED // of how our distribution model worked,” says Dreyer. Thankfully, being a small company resulted in a nimble approach to the market, and fast decision making thanks to a flat hierarchy. The partners quickly reimagined the route to market and managed to keep demand flowing.

“At the beginning of the pandemic we were selling in four territories globally. Today, we are selling in 30. We are not shipping to 30 territories, we are physically in business in 30 territories through a network of distributors and

We are specialists in the leather market and are an established brand in both the retail and corporate markets for more than 50 years, both locally and internationally.

Sourcing raw materials such as exotic and luxury leathers from a global network of specialist suppliers, we strive to provide a diversified product range of superior quality. By providing innovative branding options with attention to detail, we assures you a product that can be aligned with the personality of your individual brand.

www.parisbelts.co.za | michelle@parisbelts.co.za | (011) 334 1870 | (079) 506 8335

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INDUSTRY FOCUS: MANUFACTURING

our own ownership in those territories.

We grew rapidly which was exciting,” details Dreyer.

International expansion is at the heart of the company strategy going forward. For the Veldskoen founders, there is not a market where the brand cannot offer value, and following success in big markets including the USA, UK, Australia and at home in South Africa, there is major potential for further growth.

“Think about it like this,” starts Latouf. “One of the hardest regions in the world to take shoes to is Italy because they are the greatest shoemakers in the world and they only support local. Our business in Italy does extremely well. People will buy one pair and then two weeks

later buy another pair, and then three weeks later buy a third pair. People buy into the story but then it changes and becomes about comfort. The design is all about comfort and the way that we have worked our leather is very technical. You don’t even need to wear socks with the shoes as the comfort level is different to what has been experienced before. In Italy, our return rate of customers is extremely high.”

Zondagh agrees, confirming that the appeal is widespread – as soon as Veldskoen steps into a new market they become popular very quickly.

“Because we have such a diverse culture in South Africa, in every territory we go, the shoe takes on a different feel. It’s the most amazing thing to see how Veldskoen integrates

// NONE OF US HAD ANY EXPERIENCE IN FASHION, ECOMMERCE OR FOOTWEAR, SO WE HAD TO LEARN HOW TO DO IT OURSELVES // 90 / www.enterprise-africa.net

in Taiwan or Australia. It has been an incredible journey. We believe we have the most comfortable pair of shoes you will ever wear in your life and that is the reason it works. The stories behind it are incredible.”

One of those stories comes from David Grier, the legendary South African adventurer and speaker who recently spent 45 days running up and down Table Mountain, every day, in a pair of red-soled ‘Pinotage’ Veldskoen Heritage, demonstrating durability and comfort.

BOOMING FUTURE Thankfully the two founders remain heavily involved in the day-to-day business at Veldskoen and the values on which the company was created remain strong. “Our work now is to build Veldskoen into something that effects the world positively,” Dreyer underlines.

With a powerful brand now in place, this work becomes easier. The strength and significance of the brand was highlighted in the run up to the

VELDSKOEN SHOES

// WE SET THE TONE FOR SOMETHING VERY SPECIAL AND INSTANTLY SOUTH AFRICAN’S STARTED CONNECTING WITH THE SHOE // Tokyo Olympics, when the story of Veldskoen Shoes came full circle.

“In 2019, we remembered that our entire DNA was born out of the Olympics,” smiles Dreyer. “We were struggling to figure out how we could get involved, as any company would – it’s a ridiculous notion to somehow get your shoes on Olympians. We figured the best way was to ask South Africa for help. Nic filmed me asking anyone out there for help getting our shoes onto the feet of our athletes. The next day, the CEO of the South African Olympic Committee phoned me. We’d been working at it for two years and it was a wonderful thing to be part of.

The South African Olympic uniform set a precedent for nations where they supported local manufacturing

and young design talent. It created something that was representative of the size of our society.”

When Tatjana Schoenmaker and the rest of South Africa’s Olympic heroes stepped out with the colours of the country beneath them, the founding vision of Dreyer and Zondagh was fulfilled.

“Very few companies in the world have a story like that where it was born out of wishing for something and then five years later we achieved it. We are grateful, and now our focus is do justice to Veldskoen and the positivity it spreads.

We have a powerful value set in our business that we stick to and believe in, and we try to make good all the way through our supply chain,” says Zondagh.

For now, the humble Veldskoen is

delivering on its promise of quality and comfort. A new test will come as the founders look to up output and sales in a big way.

“We are growing rapidly, north of 40% by volume of shoes. That is because we are bringing out new ranges. We sell more that 100,000 products each year and we are looking to grow to selling more than a million in the next five years,” says Dreyer.

This is a brand of stories. It is an epic South African saga in its own right. The business is a success and the message from the founders and entrepreneurs is clear: Veldskoen Shoes assert that each of its shoes tells a tale and offers you the opportunity to finish the story. Walking in awesome comfort that you know is consciously sourced is the perfect way to create a legend of your own.

WWW.VELDSKOENSHOES.COM

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BATA SOUTH AFRICA

Bata Steps Out of Lockdown with Strength and Quality PRODUCTION: Karl Pietersen

When Bata veteran Michael Wyatt took the reins of Bata South Africa at the end of 2019, things were looking good for the company. But a global pandemic, economic meltdown, and regional unrest have forced Bata to refocus. Fortunately, a careful but ambitious plan has left the business ready for the next step in its growth strategy.

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INDUSTRY FOCUS: MANUFACTURING

//

The famous Bata Toughees have been a mainstay for South Africa’s school children for generations. Smart, hard wearing, reliable and made for quality, Bata school shoes come out of KwaZuluNatal, South African-made from heel to toe. The same goes for Bata Industrials – trusted by hard workers across different industry sectors, these shoes are safe, attractive and affordable. Made in South Africa, using premium materials including South African leather, the industrials range makes up part of a powerhouse portfolio that is busy searching out opportunities for growth.

Originally founded in 1894 in the Czech Republic, Bata arrived in South Africa in 1947 and the sturdy brand was immediately popular in an economy based on mining, heavy industry and agriculture. Today, at group level, Bata is the world’s leading shoemaker by volume, and in South Africa the company enjoys strong market share, with 500 people delivering years of industry experience.

MD Michael Wyatt tells Enterprise Africa that, after a need for refocussing during the pandemic, Bata now has Africa at its feet.

“When the pandemic came, unlike a lot of businesses that were involved in things like fashion products or those with seasonal patterns and trends, we went back to basics,” he begins. “We are a school shoe manufacturer and we make industrial and safety products, and then we have a few fashion brands.

We focussed on our core competencies and, after the pandemic, we plan to further strengthen our manufacturing or expand it to really look at those lines which saw us through the pandemic.

“We applied for a permit as an essential service provider and were allowed to restart manufacturing.

We provided PPE/safety footwear and this was a key in leveraging strategic

sales opportunity during the pandemic.

We opened our factories with strict Covid protocols and that was key to our success in 2020 compared to our competitors, leaving us in a strong position for 2021. Even with the hardest challenges there are opportunities.”

ONWARDS AND UPWARDS Wyatt sees the opportunities for Bata in export markets. Africa has long been a key element in the company’s strategy, and strong relationships are already in place across strategic territories.

Traditionally reliant on imports from the East, Africa’s footwear industry has a lot to offer but has been priced out of the market.

By teaming with local suppliers and marketing ranges in an effective manner, Bata has created an exciting portfolio for retailers to take to market.

// EVEN WITH THE HARDEST CHALLENGES THERE ARE OPPORTUNITIES //

MICHAEL WYATT

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BATA SOUTH AFRICA

// WHAT WE’RE DOING AT BATA IN SOUTH AFRICA IS TO BUILD FOOTWEAR COLLECTIONS USING LOCAL AFRICAN SUPPLIERS // “One of the most interesting areas in our business recently has been our export division,” confirms Wyatt. “A lot of African countries have suffered under years of various anti-dumping duties or prohibitive importation around certain products, so what we’re doing at Bata in South Africa is to build footwear collections using local African suppliers.

We then showcase those collections to the rest of the Bata group. We have branches in Zimbabwe, Kenya, Uganda, Zambia etc and we have become a hub for sub-Saharan Africa. We put

the collections together, and our retail sister companies from Africa come and view in the showrooms and put in their orders. We then facilitate the whole process from South Africa for export across the SADC region. That is a key project and something that we will focus on more going forward.

It all plays back into the idea of being self sufficient in sub-Saharan Africa and South Africa, relying a lot less on imports from China and others.”

Bata is capable of supplying a large chunk of the market, and its footprint in terms of impacting people is significant within the South African manufacturing industry. The company sells around 4.5 million pairs of shoes each year and Wyatt wants this to grow.

“We want to rebuild the business back to pre-pandemic levels. When the vaccination programme has run through South Africa, we will start to open up and get back to where we were before, and this is largely the target for most businesses locally. We also want to expand into fashion area of the market. Up until now, we’ve

focussed on the core aspects in the business and we want to grow the Bata brand. E-commerce and is going to be important going forward. We also want to drive a continued expansion into Africa, working alongside our sister companies in Africa and other new markets where Bata doesn’t have a presence,” he says.

FEET ON THE GROUND Before the pandemic hit, forcing businesses to close and many retail operations to come to a grinding halt, Bata’s output was climbing.

Strong relationships with the country’s merchants - including Pepkor (Ackermans & Pep), Massmart (Builders), Mr Price Group, The Foschini Group (Jet), Agrinet, Matus, SPAR and more – Bata was rolling out an expansion programme with market leadership in mind.

“South Africa had a record year in 2019 and equally strong start to 2020 before hard Covid-19 lockdown in March. We developed a strategic Covid mitigation plan early to strength

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test Bata South Africa resilience to the pandemic long-term to ensure we could see the company through both 2020 and begin to regrow in 2021 which proved successful in H1. We focused primarily on simplifying operations, focusing on our core production competencies and collections whilst mitigating and reducing any cash or stock risk - basically sticking to basics due to ongoing market uncertainties.”

Wyatt had only recently returned to South Africa before the pandemic impact became clear. A South African who had previously emigrated to Australia and then New Zealand before working for Bata in Eastern Europe, Wyatt wanted to get back to SA, knowing the market was immeasurable.

“I moved to Europe to manage Bata’s business in the Czech Republic, Slovakia and Poland. The European market is very dense and very populated whereas, as a manufacturing business in South Africa, it can be like the Wild West, and there is a lot of opportunity. There are 60 million

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// THE EUROPEAN MARKET IS VERY DENSE AND VERY POPULATED WHEREAS, AS A MANUFACTURING BUSINESS IN SOUTH AFRICA, IT CAN BE LIKE THE WILD WEST, AND THERE IS A LOT OF OPPORTUNITY // people, and then we have sub-Saharan Africa with our export partners.”

Wyatt has a personal ambition to develop the manufacturing industry in the country, which was hammered by the pandemic, falling by 2.1% year-on-year in February 2021. In fact, manufacturing as a whole has declined almost every month in the past 24.

“South Africa has a number of challenges and one of the main problems is unemployment, and I wanted to bring skills back to the country. My intention was to come back and strengthen our standing as a local manufacturer in the country. I returned at the end of 2019 just before the Covid

pandemic began going worldwide.

A lot of businesses import, and that is fine, but our drive has been to be a 100% locally made manufacturer in South Africa, for export into sub-Saharan Africa.

“We have a complicated political landscape and with that comes a lot of emigration to Europe or Australia and New Zealand and that results in a loss of skills, so for people who can come back, who can support the country, and through their efforts grow the economy and create jobs – it’s very important,” he says.

During the early stages of the pandemic, many jobs were shed in manufacturing, while companies were closed. For Bata, the idea of redundancies

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SOUTH AFRICAN MADE

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INDUSTRY FOCUS: MANUFACTURING

was unacceptable, and the company kept every single member of staff on payroll.

“That was a strategy from our side and relates back to unemployment in South Africa. Unemployment is above 30%, and can be as much as 70% in the youth so we try and come up with as many creative ways as possible to avoid laying people off.”

Employee loyalty is something that few companies can genuinely boast, but when it is achieved, product quality is improved and industry knowledge drives a healthy business. Wyatt - who has been in the industry for 20 years,

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across multiple Bata sites in different markets and various roles – truly appreciates the unique knowledge held within the South African workforce and utilises this longevity as a strategic asset.

“There are not too many companies where the average employee has 20-30 years of knowledge with the group,” he smiles. “Additionally, Bata is extremely resilient, after trading for 127 years there are not too many situations that the company does not have learnings and solutions on. Our customers and suppliers find security in this longstanding history, so Bata is a

trusted brand globally. Logically, we also realise that nothing is certain forever so we cannot be in any way complacent.

There is always a drive to improve, make progress, and move forward to find solutions. Overcoming the recent Covid-19 pandemic and Riot’s in South Africa are examples.”

LACING FOR GROWTH In Bata’s key product lines of school shoes and industrial wear, the focus continues. In these markets, Bata has a dominant position and it is not about to take a step back. In other sectors,

BATA SOUTH AFRICA

// AFTER TRADING FOR 127 YEARS THERE ARE NOT TO MANY SITUATIONS THAT THE COMPANY DOES NOT HAVE LEARNINGS AND SOLUTIONS ON //

including fashion-based lines, there is no doubt that a quality focussed, local manufacturer could make a big impact – especially one with retail relationships in place all over the country.

Wyatt is clear that developing the sector, creating jobs, and highlighting locally produced goods over cheap imports is the way forward for Bata, and for manufacturing.

“Look at the challenges with international shipping, container costs, ability to get bookings, various different lockdowns around the world, availability of finished goods or raw materials – it’s wreaked havoc on those who are solely importers. Our ability to turn on and turn off production, or adjust production accordingly is a fantastic positive that not a lot of businesses have and has allowed us to mitigate and find our way through this pandemic.

“Previously in our industry there was a heavy reliance on China for imported finished goods. The last two to three years have taught us that having our own manufacturing, and being able to control product in house, is key

to overcoming global challenges. In the next three years, we will continue to focus on South Africa and Africa.

Re-starting and growing local industry is the only solution to South Africa’s youth/job challenges. This is the primary reason I decided to return from Europe in 2019 and bring learnt skillset back to South Africa.”

Like Bata’s Toughees, its famously strong work boots, and all of the brands within its portfolio, this is a business built to last. The decades behind it provide the perfect base for the opportunities ahead. This is a South African manufacturer, using local materials and local suppliers, working in African markets to play its part in the Bata vision of shoeing the world.

“There are expansion plans in place for the post-covid market. Firstly, it’s about recovery to pre-pandemic levels, then it’s about expansion in the to the rest of Africa,” Wyatt concludes.

WWW.BATA.CO.ZA

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TRELLIDOR

Unbreakable Trellidor

Stays Solid When Pressure Builds PRODUCTION: David Napier

With an increasing number of criminal threats and a changing landscape making for a challenging security environment, Trellidor has been creative in its approach to business through 2020 and 2021 resulting in strong financial performance and ongoing product excellence. www.enterprise-africa.net / 101

INDUSTRY FOCUS: SECURITY

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2020 – the year of unrest and uncertainty. One like never before. The challenges came, and then came again; the onslaught was severe. And then, in 2021, people prayed for an end to the distress, fear and angst resulting from the pandemic, but a spate of disturbances begin around the world, perhaps most poignantly in South Africa where riots destroyed lives and businesses.

While Covid-19 was, and is, certainly a catalyst in the feelings of insecurity, other factors have merged, creating a world where, unfortunately, security and protection are foremost in people’s planning.

In South Africa, Police Minister General Bheki Cele briefed colleagues on the crime stats for the first quarter, citing increases across almost all metrics. The worrying stats were further confirmation for those in two minds: security is a worthwhile and necessary investment.

But where to start is in such a popular but convoluted industry?

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According to the Private Security Industry Regulatory Authority (PSiRA), there are more than 9000 registered companies in South Africa, servicing a whole range of requirements from technology to manned guarding to cashin-transit protection to home perimeter fencing and gates. It’s a minefield.

Fortunately, like in any industry, word of mouth is the best marketing tool and the best quickly rise to the top. In the manufacturing and provision of physical home and business security products that go into apertures, Trellidor is the industry leader, commanding impressive market share, and calling on a 45-year history of innovation and excellence.

The company has grown beyond the borders of its home province and country, and is now active internationally, and listed on the Johannesburg Stock Exchange (JSE).

Matching modern day uncertainty with a promise of absolute surety, Trellidor is a company that is dedicated to protecting homes and businesses.

STRONGEST PARTNER Sales and Marketing Director, Peter Rawson, tells Enterprise Africa that now, more than ever, it pays to partner with the best.

“If we get our work wrong, people could get hurt or killed,” he starts. “It’s an exciting industry and we appreciate the responsibility we have as the market leader to set the scene and make sure there is adherence. People are very appreciative when we do get involved and when we help them protect themselves. It’s a very fulfilling business to be a part of. We are proud of the products we produce as they are top quality, and the service we follow up with is the best available. Our network in South Africa is incredible and no one is close to it. It gives us a huge advantage in after sales service, maintenance and emergencies.

“We have seen examples from all over the word world where you see mobs going down the street and physically ripping steel shutters off

TRELLIDOR

shopfronts by hand. During the unrest, the same happened here, steel roller shutters were ripped from windows and doors in shopping centres with ease and everyone got a big fright about how limited this type of security actually is,” he adds, referring to the dreadful scenes realised across Gauteng and KwaZuluNatal (KZN) in July 21.

Many shops, malls and places of work were smashed, looted and set ablaze by rioters in a seemingly carefree rampage that quickly spiralled out of control, leaving the South African Police Service (SAPS) ineffective and resulting in South African National Defence Force (SANDF) deployed in some areas.

But shopfronts equipped with the Trellidor’s RH55 aluminium shutter escaped unscathed, demonstrating the experience, power and strength of the company and its products.

“We have completed a number of massive doors for Massmart in South Africa, and we put the units into most of their stores. I am happy to say that

during the recent unrest those units stood up against the looting and none were broken through,” says Rawson.

True to its promise and constantly innovating, Trellidor was already developing an alternative solution for shopfronts which don’t require the size of the RH55. Labelled the Lockdown Shutter, or RH65, this new roller guard is being installed by many businesses who were damaged during the riots.

“It comes out of our innovation with Sainsbury’s in the UK. We have developed the Lockdown Shutter and it is right at the top of the security provision. It works like a seatbelt in a car – if you drag it from the top with a motor it works perfectly. As soon as you try and force the sheet up in anyway, there are activators on each slat which tilt and jam. We have taken forklift trucks off the ground trying to force these products up. The RH65 is what we use in Sainsbury’s on their kiosks where they sell cigarettes and other valuable products. We have had people with

angle grinders and other sophisticated tooling trying to break these and being unsuccessful. In Africa, banks, jewellery stores, gun stores and hotels are our target market and there is huge excitement about it.”

Currently, aluminium products manufactured by Trellidor are some of the strongest available and provide real protection. The RH65 is manufactured in the UK, but will soon be integrated into the SA factory. The RH55 and the RH40 are built in SA and are popular in the market. When manufacture of the RH65 moves to SA, Rawson is confident the model will sell quickly, and updates to facilities will provide the ability to make shutters that are larger and stronger, and able to be deployed in almost any environment.

“We have a number of main retail companies lining up to look. We are also looking at bigger shafts and larger motors which will allow us to cover much bigger sizes, taking away any limitations we have experienced.”

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INDUSTRY FOCUS: SECURITY

PANDEMIC PRESSURE As the pandemic began to sweep through the nation, Trellidor focussed on its core products, reorganising the range into dedicated categories, making it simple for customers to navigate, and straightforward for the company’s sales team.

“It is being driven by the fact that people’s requirement for security is evolving and we are driving hard to get further into commercial corporate environments as we’ve always been so dominant in residential,” says Rawson.

The first category is homebased products that offer high-grade protection from various threats but also bring aesthetic qualities meaning they are perfect for use inside and outside the home. It comes from a demand inside gated communities or secure estates where the perimeter is

well-patrolled and the gates are secure, but threats remain inside the walls.

“It’s a lower-level estate product range including retractables, shutters, roller shutters, polybar, cottage guards etc. That range is aimed at a functional level where people are looking for protection from perpetrators but also from animals including monkeys, spiders, snakes, and insects. It is really more of an access control but has functionality that addresses the environmental issues such as light, wind and rain. It also has that all important aesthetic function,” details Rawson.

Far from your traditional security access products – rigid, rough and daunting – this range adds to the decoration of a home while driving the all-important Trellidor protection. The expansion of the group in recent years

has helped to grow in this category.

Taylor Blinds and Shutters and NMC Decorations were added into the group to access new market sectors and the Trellidor sales team is thankful.

“It is a big opportunity for us in South Africa which is a very competitive market. It gives us that opportunity during a security consultation to talk about light and wind and other things,” details Rawson.

“NMC is a Belgian offering and we import. It is a polycarbonate, very strong skirting and cornice range for housing. Again, it’s about bringing a wider offering when we are onsite. We work with builders and contractors and it’s the sort of product that allows us to get into big projects. That diversification is in its infancy but it is starting to work and is something we are pleased with.”

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INDUSTRY FOCUS: SECURITY

The mid-level, or Premium, range is where Trellidor has made its name and where it dominates the market. “This is our core business and is a security product,” declares Rawson. “It’s less about the aesthetic and more about stopping access. Even with various implements, this range will withstand an attack. We are trying to improve the aesthetics with the shutters but these are serious security products.”

A patented Trellidor locking system alongside an uncluttered design – hiding all mechanisms – and built-in strengthening features make the Premium Shutters and others in this range perfect for all.

The top-level range, labelled the Certified Range, is where Trellidor goes from residential provider to corporate partner, offering state-of-the-art security products that are rigorously tested through external sources and utilised by those requiring pinnacle protective barriers such as military and government clients, and well as large international conglomerates.

“We are now talking about serious, functional security that has been tested through the BRE Testing Centre, part of the LPCB which is insurance funded. The products go through stringent attack testing and receive a rating that demonstrates how strong they are,” says Rawson. “That takes us into corporate, commercial; areas where there are large crowds such as stadiums, railway stations, passenger terminals, and we see the certified

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range as a huge opportunity going forward. We are starting to see this range being used, especially in Africa, in banks, embassies, and in crowded public areas where security is the aim.

When these products are closed and locked, access is not going to happen – this is the real McCoy.” Demand for this range kicked off for Trellidor in the UK. Working with long-standing client Sainsbury’s, as well as the London Underground, this no-nonsense range achieves complete protection in secure environments. UK standards agencies have awarded the Trojan 3 EMESC T3000 gate the highest possible certification and Rawson sees potential locally and internationally.

“Without that certification, you are not a player. Armed forces in the UK will not consider your range without it being certified. British, American, Belgian, Austrian, and many more – we are securing embassies around Africa and the certified range is the go-to for them.

“There are huge security challenges and the international side of this business brings massive opportunities,” he says.

DIGITAL DEVELOPMENT In order to meet demand in a lockdown situation, where salespeople were not allowed to physically attend homes or business premises, Trellidor had to innovate. Fortunately, the company

has innovation in its DNA and moving quickly to adapt is a trait that has kept the company at the top of the industry, even in the toughest market conditions.

“We’ve always had a very positive attitude about these times and we quickly get into innovation - doing things better, looking for new markets, and researching new products,” saws Rawson, highlighting the 2008 recession, 2013 financial crash, and now the Covid-19 pandemic and global economic meltdown. “We changed the methodology of our consultation in the field and we were on the front foot with Covid protocols.

“It’s an exciting new world,” he adds. “Digital has arrived and taken us all by storm. It’s brought massive opportunities and we have embraced it. We are very excited about how the future looks.

“Through our website, we offered people the opportunity to have a virtual experience with us. It was simple and all online. Our sales team could get online and walk around a home with a customer, giving advice and talking about products, and we did a fair amount of business that way.

We also produced an AR (Augmented Reality) experience where customers could walk into a virtual showroom and experience the products in different colours and sizes, and that has also been a hit.”

TRELLIDOR

Previously, Trellidor used trade shows and home improvement expos as a direct route to market, but with the collapse of in-person meetings, alternative solutions became essential.

“The AR facility on our site became a requirement and we find it amazing how people have adapted. Covid has certainly driven innovation.”

Where many companies have been hard-hit by the impact of lockdowns, Trellidor’s this innovative approach to business, and it’s the company’s ability to provide a proven solution have resulted in a strong financial period. The company Trellidor announced improved revenue and Rawson puts this down to a nimble nature.

“On the financial side, we’ve had a tremendous year during what is one of the worst years ever. It was obvious upfront that we were in for a protracted test. We immediately reviewed any areas of the business where we could batten down the hatches from an overhead cost perspective without damaging progress, awareness and normal marketing. That worked exceptionally well as it was mainly factory focussed in terms of looking at shifts and efficiencies. From a marketing perspective, it was tough in terms of aggressive opposition as the market shrunk and everyone was fighting for what was left.”

He says that as people moved to work from home, they quickly identified

// WE’VE HAD A TREMENDOUS YEAR DURING WHAT IS ONE OF THE WORST YEARS EVER. IT WAS OBVIOUS UPFRONT THAT WE WERE IN FOR A PROTRACTED TEST //

// IT’S AN EXCITING NEW WORLD. DIGITAL HAS ARRIVED AND TAKEN US ALL BY STORM. IT’S BROUGHT MASSIVE OPPORTUNITIES AND WE HAVE EMBRACED IT // how vulnerable their homes were – even in protected areas. This was similar across South Africa, and on the continent, and the realisation drove demand.

“It effected our leads and the number of people wanting to see us.

But at the same time, many people demanded that we came in to install security products.”

Going forward, Trellidor will invest further in its digital capability, and into its technology in the product range. “It’s all about keeping up with consumer demand,” says Rawson.

The company will remain a manufacturing security company, dedicated to physical security but with various offerings that provide further protective products. “We have a concept around automated home living and automated business living, where people are aware of attacks on their property. There is a trend around monitoring the home or office through a phone and app. We are determined to embrace that and be a part of it, and that will bring a whole new element to our offering.”

GLOBAL GROWTH Although 2020 and 2021 remain years for most to forget, there is a growing acceptance that this is not the last time events and disruption of this nature will occur. Trellidor continues to search for new opportunities to diversify, and revamp its internal processes so that customer service is of the highest possible standard. By investing in digital, the company has already taken a step ahead of its competitors, and by continuing to devote resources to development of its range, exciting clients are enquiring from around the world. This is where Rawson sees the future of the group.

“RSA remains our focal point, but if we look at our two biggest opportunities, we look at Africa where we believe there is huge opportunity – especially in the Indian Ocean Islands - and then Europe where we now own our UK branch,” he says.

“Our African network is evolving brilliantly and we are looking at opening up four or five countries in Africa over the next 12 months with franchises that come fully-fledged with trim shops and the ability to supply and service.

“We have recently opened in Ethiopia with a fantastic operator. We are looking at South Sudan, Uganda, Angola, Ivory Coast, and New Caledonia.

We are seeing security as a requirement and becoming more and more of an issue in all counties we deal with.”

In its home market, Trellidor is undertaking a programme through which it will buy back franchises in the main centres of South Africa as franchisees retire or emigrate. The result is Trellidor-owned branches in Durban, Johannesburg and Cape Town and this brings further opportunities for expansion.

It is clear that this is a booming industry where trust is the most important factor. For 45 years, Trellidor has built its reputation and customer feedback is clear: this is a business that achieves what its goal of being the ultimate crime barrier with strength, quality and variety.

“Our philosophy is to be there to help, and help people to secure themselves,” Rawson concludes.

WWW.TRELLIDOR.COM

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DENNY MUSHROOMS

Marvel at South Africa’s Mushroom Mega-Growers PRODUCTION: Timothy Reeder

Packed full of antioxidants and selenium, brilliant for heart health and crammed with phytochemicals found to suppress breast and prostate cancer, mushrooms are the order of the day in South Africa. Denny has been the country’s household name expert grower for over 40 years across its three industry-leading farms and has no plans to deviate from leading the way in cultivation and promotion, according to Managing Executive Gerbrandt Rust.

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“Denny is the mushroom expert, and we are passionate about what we do,” neatly summates the mushroom monolith. This much is undeniable: its three farms produce half of the total mushroom consumption in South Africa, lovingly tended under perfect conditions to bring all the goodness of this vital vegetable to every South African.

Four decades of mergers, acquisitions and growth have produced this lasting, extremely well-known brand, popular among families and individuals alike in South Africa. “Every second mushroom eaten in South Africa is supplied by us,” Managing Executive Gerbrandt Rust proudly reveals. “Striving to produce the very best-quality has always been, and remains, very much our primary concern. Denny is such a household, familiar name, that it is almost a subconscious act for consumers to pick up one of our blue punnets ahead

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of any of the others. We stand out.”

Part of the Libstar group, one of the biggest house brand manufactures in South Africa, Denny lives by the Libstar values of customer centricity, accountability, partnerships and entrepreneurial spirit. “We value the input and efforts from our holding company Libstar which plays a big role in the success and future sustainability of Denny.

We at Libstar and Denny strive to enrich people’s daily lives,” Rust states.

Fittingly, Denny wares enjoy spots in the country’s prime outlets. “Top-end retail is the main sector Denny serves,” Rust adds, “which consists mainly of Woolworths, Pick n Pay, Spar and Checkers. We then supply a lot of fruit and veg sellers, as well as many restaurants looking for the very best in quality and freshness to then offer to patrons.”

Bringing to the table the largest and most extensive range of fresh white and brown mushrooms is Denny’s modus

operandi, greatly aided, Rust explains, by its ability to fulfil the entire process from beginning to end. “We do things a little bit differently to the big players in the UK and the EU, whereby we handle the whole chain, take care of the whole chain, right through to the shop shelf. It is very much a vertical, integrated business, and has been throughout Denny’s existence.”

SUSTAINABLE SUSTENANCE “We have recently branched out to a secondary focus on value-added products such as meat alternatives and farm-based products,” Rust reveals. This initiative has fitted wholly with Denny’s leader in sustainability status in South Africa, an accolade which drives it to continually work to improve its processes and make them even kinder to the environment.

“The mushroom cycle is a very sustainable one,” Rust presents. “It allows us to remove all the waste produced on farms in wheat and maize production and

INDUSTRY FOCUS: AGRICULTURE

take this to then form part of the substrate we make in order to feed and grow our mushrooms. Afterwards, this is then ploughed back into the lands, creating a very sustainable and integrated cycle of which we are very proud.”

The intensity and intricacy of the mushroom-farming environment, a 24-7, 365-day endeavour for Rust and company, makes it difficult to take on projects or products away from mushrooms, he says. “Over the past two or three years, however, this has really driven our focus on utilising every single piece of fibre that we produce on our farms.

“It has also led to the introduction of these new product offshoots, but also right down to the resourcefulness of supplying buckets of mushroom and brine to bio-manufacturers in South Africa, for example. There is a lot still for us to explore with what we currently have,

before we will begin to look at diversifying on our farms.”

This is a collaborative effort from a company which has long lauded the power of its partnerships in bringing the mushroom to the fore in the country. “We also prefer to consider the top retailers who we supply as our partners, rather than just our clients, to build a sustainable future together with us for the mushroom category in South Africa.”

When he speaks of sustainability, Gerbrandt Rust refers to more than environmental or agricultural practices - it is the health of the entire industry that Denny is working to safeguard. “We really invest in the industry and in South Africa through our people. We are always the first company to take graduates from university, and train them, and while many do end up going to our competition, I see this as a real source of pride. Denny was

where they found their love of the game and of the industry.

“In the South African landscape there are so many people who started out at Denny and went on to find success going their own thing and on their own farms. On a regular basis we also run apprenticeships, or internships, and sponsor select candidates who are still studying to complete their degree or diploma, who then come to work for us and continue to grow with Denny.”

FUNGI-FOCUSED Rust can offer a rare insight into the nuances of the Denny operation, having himself been at the heart of the farming element before assuming his current post just over a year ago. “I started off running the biggest mushroom farm in Africa, in Gauteng, and then was appointed to this post.

The Growers’ Dependable Supplier of Top-Quality Mushroom Spawn

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DENNY MUSHROOMS

“It brings such a different dynamic to the position if someone has actually worked on the farm; it allows you to understand the frustration of the people, what they need and the tools they require - you can put yourself in their shoes. It is a tough industry, and certainly isn’t for everyone,” he admits, “but as long as you have the backing of your team and they share the same vision and passion, then anything is possible.”

Moving forward it is not just Denny that Rust wants to grow and develop, he explains; it is a far more holistic aim.

“In South Africa we remain something of a niche market. Even though a lot of people are buying mushrooms there is a still a big untapped section for us to embark on conquering, by going into rural areas, educating people and teaching them how to cook with this very nutritious, filling product.

“It is not just about putting our brand and our name out there; for us, it is much more about increasing overall mushroom

consumption in South Africa. We would like to see it go from 150g per annum, per person, to double this or more, meaning higher demand and, inevitably, more opportunity in the sector leading to further expansion and job creation.”

Nutritious, delicious, capable of lowering risks of cardiovascular diseases and cancer - it is little wonder that Denny does not foresee any great need to revolutionise its operations or offerings as it seeks another four decades of dominance. “There is a very specific recipe that works in the mushroom industry, and as far as possible we try not to meddle with that,” Rust states.

“In the market, though, you want to be unique, to stand out and to have the leverage over the competition, which is difficult because at our roots we have the two strains: white and brown, nothing more, and that keeps us thinking creatively and constantly refining what we do. It forces us to always be ahead of the curve of

consumer behaviour and of where the market is moving, and a lot of background work and discussion keeps us there.

“This means that we are able to think on our feet, reassess and adapt very quickly, which gives us the upper hand in the market, listening to our partners’ needs.

“We are leading the market in South Africa in terms of yields, prices and how we look after our staff,” concludes Rust.

“Our main drive now is to stick to the basic principles of mushrooms growing and our major investments will be in our own production, to replace everything and invest everything that we make back into our business and our production. We want to upgrade our facilities to a global standard to push us into our next 40 years of farming.”

WWW.DENNY.CO.ZA

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ELPHICK PROOME ARCHITECTURE

Collaboration and Innovation Keep EPA Building and Growing PRODUCTION: William Denstone

Characterised by comprehensive and effective professional service, intelligent design solutions and delivering exciting and innovative buildings and spaces, Elphick Proome Architecture (EPA) is a leading architectural firm with a long and distinguished history in South Africa. Adaptability and competences in every sphere of architecture has taken EPA across Africa and beyond, and with a boundless desire to collaborate and learn, an everbroadening network looks set to bring its designs to every corner of the continent. www.enterprise-africa.net / 113

INDUSTRY FOCUS: ARCHITECTURE

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Committed to architectural excellence, EPA creates exciting buildings, environments and spaces with functionality at their heart. Established in 1989, George Elphick, Founding Director, details the formation of the business and the foundations which have been fundamental to its success today.

“Nick and I had known one another for some years,” he says of his longstanding partnership with fellow Founding Director Nick Proome, “before we decided to embark on our own architectural practice on the basis of being awarded a small industrial project in Durban. That was nearly 35 years ago, since which time we have built a practice consisting of two offices in our Durban stomping ground, where we have grown into a large and renowned practice within the South African architectural professional context.

“We have achieved this quickly in a relatively small city, and in the context of the reduced scope for work it offers.”

On this point, he says, it has been vital for EPA to adopt a can-do, master of all trades approach.

“We have found it imperative to be architects who take on work of any nature and scale. We are not specialists, per se, but have had to learn and develop competences within almost every sphere - commercial, residential, hospitality, health, industrial and mixed use and others, as the opportunities have arisen.”

CONTEXTUAL RESPONSE A more than three-decade legacy now sees EPA comprise three dynamic and capable architectural practices,

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created to deliver a complete and comprehensive range of design services in the African continent and beyond. “We created our second practice, Elphick Proome Studio, as an affirmative action collaborative, undertaking retail and commercial projects and engaging in educational and institutional projects in the South African context,” Elphick details.

The third practice is Elphick Proome Architects International (EPI), based in Grand Baie, Mauritius.

15 African countries have been uplifted by its work, with many of these projects brought to fruition in collaboration with locally-based architects, yielding highly successful outcomes. “We have one ethos and one culture, but independent practices that respond specifically to particular needs,” Elphick summarises.

“EPA was conceived with a vision to create quality design solutions that offer enduring and innovative, functional design solutions appropriate to the context, region and climate. Simply put, a contextual response is the cornerstone of our approach, which has taken us across the whole continent and even into Europe.

“Fundamentally we are an African practice and as such we consider ourselves able to respond to the African condition, which is inherently

Afro-centric, and requires a distinct ability to be particularly resourceful from the inception of a project all the way through to its execution.”

A PEERLESS PORTFOLIO “We have gone from a very small entity to an appreciable practice which has offered a huge amount to the African architectural and development world.”

EPA’s contribution is now permanently etched in the African landscape, in the form of a design portfolio steeped in historic and class-leading constructions.

It is EPA’s ability to be flexible, agile and resilient in its service that has brought about such a breadth of completed projects. “Each design solution represents a very particular journey, all different in nature but with notably successful outcomes.

The spread reflects our commitment to specific responses, rather than a branded approach that promotes a similarity between buildings,” Elphick assesses, highlighting the office buildings of RCL Foods as a singularly special opportunity offered to EPA. “This was a collaborative effort between numerous parties,” he details, “an integrated process of developer, landlord, contractor, ourselves and many others all working on the project at once. The resulting collaboration, I believe, created the energy to drive what is widely recognised as a building

ELPHICK PROOME ARCHITECTURE

with a very discernible African quality.

Internally especially, to the extent that our interior design arm won the global award in 2017 for that project.”

The edifice, it transpired, was a key element in a much wider strategy for RCL. “This building was designed to facilitate the creation of Africa’s best and largest food company, to vigorously take on those really big brands that exist both national and globally. It allowed RCL to amalgamate a series of different businesses under a single umbrella, bringing together five or 10 disparate cultures into a single new whole and the building was one of the significant tools used by RCL to drive the new culture, extremely successfully.

“We have in turn used it extensively to further our own collaborative capabilities. Rather than be the dictatorial architect, we tend to listen

a lot before we engage, and it all routes back to our love of developing relationships across the board.”

EPA’s Investec building was an entirely different venture to create a premium-grade banking corporate, Elphick explains. “This was a very tough project in many ways,” he admits, “to assimilate for South Africa’s homegrown international bank what had been done elsewhere in London, Zurich, Johannesburg and Cape Town, and make something of the brand that was predetermined. We took that brief and amplified it to create a very elegant building, which is still recognised as one of the premier office buildings in the country in terms of its architecture, its interior and its methodology to promote business.”

For Unilever, meanwhile, EPA was appointed to take on what was to

be used by the British multinational as a landmark industrial project.

“This particular building was to be earmarked as the new standard for Unilever’s industrial processes. We had to design and document it within a three-week timeframe, which we accomplished, and created a building which became their icon globally for two years.

“It is a highly successful food plant crammed with strong architectural metaphors and a very complicated series of industrial processes. It was one of the very first buildings to be entirely off the grid from a water perspective, too, at a time when the sustainability agenda was but a fledgling idea. We are very proud to have been involved and forged some valuable relationships at the same time.”

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INDUSTRY FOCUS: ARCHITECTURE

George Elphick

EXCITING ENDEAVOURS Despite the slowdown in spending and nervousness within the commercial sphere, EPA has a lot of new business keeping it busy, learning and growing at present. “We have recently commenced a very sophisticated and substantial new head office building for some big clients of ours, GRIT and their development company Gateway Real Estate Africa (GREA), in Mauritius,” Elphick reveals.

“We are also currently at the design phase of a local university for a Japanese company which undertakes an MBA programme for its employees and others, another

// OUR ENDEAVOUR IS TO CONTINUE TRAVELLING THROUGH AFRICA, AS WE HAVE BEEN SINCE 1997 // 116 / www.enterprise-africa.net

fascinating new project upon which we are beginning to embark.”

One proposal that suffered terribly both pre- and throughout Covid is the largest mixed-use project in South Africa, the Oceans Development in uMhlanga. “This is a very exciting project which has gathered significant interest in the architectural and development world,” Elphick states.

“It has a substantial, high-grade retail and public interface podium, and then three towers on which we are the lead architects.” One of these is a new, 207 room Radisson Blu hotel, a high-end complex featuring luxury apartments.

This is yet another example of collaboration proving decisive for EPA, where it is teaming up with LYT and Ruben Reddy Architects to deliver this new urban resort. “It is well underway for completion by the end of 2023,” Elphick informs us, “which is a great relief for us on such a critical project in one of SA’s primary holiday destinations.

For the last two to three months there

has been a lot of activity, and the biggest number of cranes Durban has ever seen on a single site.

“Through all of our past, and these current, projects, we have enjoyed excellent collaborations with other well-known architectural practices in the US, in France and in Britain,” Elphick adds, recognising that these alliances are going to prove crucial as EPA looks to extend its reach even further.

GROWING THE FOOTPRINT “A lot of developers in South Africa are questioning their rollout of anticipated pre-Covid developments at the moment,” Elphick describes, “so we feel almost bullish about opportunities we see elsewhere on the continent. We have a wide network to draw on and Africa is very much a growth area for us.

“Our engagement and establishment of a practice in Mauritius was somewhat fortuitous, a chance meeting with a young architect on the same flight as me heading back to settle

ELPHICK PROOME ARCHITECTURE

Illove

Nick Proome

in Mauritius following many years in this country. Within a month this had blossomed into what would become a thriving practice.

“We saw a distinct opportunity as we had a very strong client in Mauritius, for whom we are the preferred architect, who was engaging specifically in projects throughout Africa. This presented a very distinct and obvious synergy and prompted us to establish an international practice through which all of our work taking place outside of South Africa, or the SADC, is channelled.

“Our long-term plan is to grow that even further,” Elphick goes on, “into a practice of perhaps five or 10 people. It will give us the gravitas we need to amplify our work in the Indian Ocean islands, where we see vast opportunities in terms of bringing an established South African practice to them, something which has not happened before in a territory mainly dominated by homegrown branches.

We have identified a big gap for

hospitality, and even more so possibly for commercial and industrial in a growing environment.”

Having already done so much in such a relatively short space of time, and seized every opportunity to extend its network, competences and reach, EPA will now look to do much more with the abundant openings still available to it with its current setup. “We have no intention of opening other practices at this moment. We have collaborated with some very well-known outfits in London and New York, for example, on other African projects, and have established relationships throughout Africa with other institutions. There is a certain reciprocity with this, too, where we become the representatives of other international practices in an African context.

“Once again, this is all seeded in the principal of forging and promoting partnerships and affiliations. Our longterm consideration is that we will face certain challenges in South Africa in the

next 10 years and while the market here is not shrinking - it will certainly hold its own - neither is it massively expanding.

“We believe therefore that our sustainability will derive from having this much bigger, more varied footprint,” is Elphick’s closing assessment. “Our endeavour is to continue travelling through Africa, as we have been since 1997, forging many new relationships and exploring numerous prospects along the way.

“We have found over the years that we tend to attract work that we have already done, and one thing that we see as a strength in our business is the ability handle many building types,” he adds. “We are capable in many areas, by necessity and through the experience we have accrued, and this will stand us in excellent stead to grow the business further.”

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HOMECHOICE

Digital Drive Allows

HomeChoice to Thrive PRODUCTION: Timothy Reeder

HomeChoice has long been known for its commitment to adapting to consumers’ wants and needs in an ever-changing environment. In a vital response to the height of the pandemic HomeChoice elected to grow and refine its digital offering, and with its FinTech operations continuing to exhibit strong growth, results are showing remarkable bounce back.

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INDUSTRY FOCUS: RETAIL

//

By no means the most significant or lasting disruption of the Covid-19 pandemic, but still notable amidst the turmoil and devastation was the gradual, almost unnoticed at first, reduction in anything leisure-related, until options had all but disappeared entirely.

Socialising, shopping, dining out - under the rigorous conditions of various lockdowns all were suddenly removed from the menu as movement was curtailed and gatherings became a thing of the past. The whole of South Africa, and large parts of the world, faced up to the new reality of recreation and relaxation taking place almost exclusively at home.

What this sudden confinement meant, however, with the home becoming the arena for every aspect of our lives both personal and, for many, professional, was a renewed and fierce desire countrywide to maximise the enjoyment of this enforced isolation.

It produced a boom in demand for

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homewares, as consumers sought to make as comfortable and enjoyable as possible the one environment left available to them.

// 96% OF OUR CUSTOMERS RATE FINCHOICE AS THEIR FAVOURITE DIGITAL FINANCIAL SERVICES PROVIDER // CUSTOMER FIRST HomeChoice is southern Africa’s largest home-shopping retailer, offering homeware and financial services. It caters primarily to the middle-income mass market with an omni-channel route delivering both its vast product range and related financial services division (FinChoice). “The business

has always been mass-marketed, targeted at females, specifically urban, of African descent,” HomeChoice Chairperson Shirley Maltz told Enterprise Africa in 2018.

At the time, Maltz also highlighted another strategy HomeChoice was employing to best respond to changing customer requirements, outlining to us in detail the then-nascent concept of the HomeChoice showroom. The second of these had just opened in Maponya Mall with the third, fourth and fifth set to quickly follow.

“The concept is that you can walk in, look at the product and feel the quality before ordering online for the product to be delivered or collected,” she explained. “Our customers can see exactly what they could have and exactly what we offer.”

Far from a ploy on HomeChoice’s part to transition to a bricks and mortar retailer, Maltz was keen to stress, these showrooms are designed to consummately compliment the

HOMECHOICE

company’s existing retail strategy and create new touch points and interaction opportunities. The burgeoning fleet has since swelled to in excess of 10, with sites in Cape Town, Komani, Pretoria and Rustenburg added in the ensuing years.

“HomeChoice understands that your home is a reflection of your personal style, which is why we’re always bringing you the best in style and quality in line with international trends,” the company says. “We stock trusted, big-name brands with quality appliances to suit all living spaces, big or small.”

“She’s always shopping somewhere, she just might not be shopping with you,” Maltz summed up of HomeChoice’s majority customer base - female, usually with children and between 30-60 years old, living in South Africa’s urban areas. “If she’s not shopping with you it’s because your products are not good enough. We push ourselves very hard to stay apace with the customer.”

// OUR DIGITAL MOMENTUM HAS ACCELERATED AND WE ARE REALLY PLEASED WITH THE 23.1% DIGITAL SALES GROWTH ACHIEVED // DIGITAL DOMINATES Even back in 2018, this commitment to responding to consumer requirements translated to an aggressive development of HomeChoice’s digital channels, embracing the transformation and possibilities for improved customer engagement via both smartphone and traditional phone access.

It proved invaluable when in-store and in-person capability was brought to a crashing halt as the virus secured a vice grip on the country.

A combination of enforced shutdowns and a haemorrhaging of consumer confidence in attending physical stores brought the focus resoundingly back to HomeChoice’s digital prowess.

Covid-19 brought about massive acceleration in the structural shifts towards digital. The South African

e-commerce market showed growth of 287% on its 2015 position, while in Deloitte’s Africa Digital Commerce survey last year two in three respondents indicated an intention to further increase their use of online in their shopping needs into this year and beyond.

As a result of its innate ability to respond to the immediate needs of both the market and the shopper, HomeChoice was able to capture this opportunity and capitalise in a big way.

It has notched up nearly a million likes on Facebook, a 7.1% increase year-onyear, while its Instagram profile saw almost a doubling of its followers. This was all joined by a 10% rise in e-mail engagement, 35 million shopping sessions and another 27% growth in adopters of the HomeChoice app.

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INDUSTRY FOCUS: RETAIL

// OUR INTERIM RESULTS REFLECT OUR CONTINUED DIGITAL GROWTH IN OUR FINTECH AND RETAIL DIVISIONS, TAKING ADVANTAGE OF THE STRUCTURAL SHIFT TO DIGITAL MOBILE-FIRST TRANSACTING // A vital arm of its multi-capability offering, HomeChoice’s FinTech business FinChoice provides personal lending,

ASSISTING YOU IN GROWING YOUR BUSINESS

value-added services and insurance products to its retail target market, who are increasingly mobile-savvy. “96% of our customers rate FinChoice as their favourite digital financial services provider,” the group enthuses of its mobile-first, technology-driven solutions.

New customer acquisition doubled from the comparable period in 2020, with an additional 42,000 customers brought on board in the first half of 2021 alone. “Using API data-driven technology we are able to make personalised loan offers to prospective customers from sources external to the Group,” HomeChoice furthers, “now contributing 64% of new customers.

“Pleasingly, 65% of new customers are originated end-to-end digitally, further entrenching the FinTech automation benefits.

“Our retail recovery plan is

gaining traction,” the group summates.

“Retail sales grew by 8.5%, driven by digital momentum and the additional showrooms opened in H2 of 2020.

“Our digital momentum has accelerated and we are really pleased with the 23.1% digital sales growth achieved. One in four new customers are digital and there has been a 27% increase in HC App installs, supporting our mobile-first approach to drive digital adoption by our customers.

Monetisation of social media has also proven effective, with sales up 27%.”

EXCEPTIONAL TRADING PERFORMANCE In large part thanks to such strong digital growth, HomeChoice was able to post a highly resilient set of interim results for the six months ended 30th June 2021. “In challenging market and socio-economic

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HOMECHOICE

conditions, group revenue increased by a creditable 7.4% to R1.7 billion,” the group reported. This was driven by strong loan disbursements growth of 99.0% to R1.6 billion and retail sales growth of 8.5% to R0.9 billion.

“Our interim results reflect our continued digital growth in our FinTech and retail divisions, taking advantage of the structural shift to digital mobile-first transacting, accelerated by the Covid-19 restrictions,” commented Maltz.

FinChoice was without doubt the outstanding performer, succeeding exceptionally well in the six months measured. Loan disbursements doubled and insurance premiums increased by 40%, with revenue growth of 15.3% and trading profit increasing by an outstanding 87.8% to R139 million.

“The structural shift to digital has accelerated an already strong momentum achieved by the FinTech division,” HomeChoice summed up.

“With a 0.95% market share of the

National Credit Regulator’s reported debtors’ book for short-term and unsecured lending, the Financial Services business is well placed to grow and take market share by capitalising on our FinTech platform.”

Despite recent unrest, HomeChoice remains focused on driving sales, as the acceleration of the vaccine roll-out provides relief and supports growth in GDP, alongside early indications of improvements in South African consumer credit health. The resurgence in homeware attention looks set to be a lasting one, too, as the number of South Africans living in owneroccupied housing continues to expand and provides a constant supply of purchasers of homewares.

“We will continue to invest in technology to support the FinTech’s vision to be our customers’ favourite digital financial services provider,” HomeChoice rounds off. “The retail division is focused on the execution of

our recovery plans, product innovation and excellence combined with ongoing digital transformation.”

“Our significant investments made in technology in recent years, with cloud-based platforms, digital marketing and social media monetisation, as well as machine learning algorithms and datadriven customer acquisition to drive digitalisation have enhanced the customer experience and made it easier for her to transact with the group,” Maltz said.

“We will continue to focus on delivering exciting products, new merchandise categories and attractive financial services to both new and existing customers.”

WWW.HOMECHOICE.CO.ZA

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© THE CAPITAL HOTELS & APARTMENTS

THE CAPITAL HOTELS AND APARTMENTS

Five-Star Strategies Allow

The Capital to Seize Opportunities PRODUCTION: William Denstone

The runaway leader in South Africa’s hybrid hotel business, The Capital Hotels & Apartments (The Capital) has been breaking hotel norms since 2008. This bold approach has massed it a portfolio totalling more than 1200 rooms, across multiple properties in key locations. A self-styled ‘anti-hotelier’ himself, CEO Marc Wachsberger delves into the group’s unique strategy and philosophy powering continual acquisitions and investments and the countrywide presence in its midst. www.enterprise-africa.net / 125

INDUSTRY FOCUS: HOSPITALITY

//

13 years of innovation in the hotel business have seen The Capital lead the way in sought-after, apartmentstyle accommodation, that offers a home away from home experience in the context of a slick, luxury hotel. “We are the leading hotel and apartment group in South Africa, specifically in the bracket of apartment or extended stay hotels, and the fastest-growing both in general hotel terms and specifically conferencing,” The Capital CEO Marc Wachsberger unpacks.

“We currently have 12 hotels, including the new properties set to open this year, which in the African context perhaps does not look a large number,” he readily acknowledges, “but what really excites us is our status as the group with the fastest, strongest growth, which frames the whole story much more accurately for me.

© THE CAPITAL HOTELS & APARTMENTS

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“We began amid another crisis, in 2008, when we were renting apartments and then sub-letting them nightly - very much the same space that Airbnb subsequently adopted,” Wachsberger details, and these formative years. “This initial foray then led us into the regular hotel sector and conferencing, meetings and events.”

UNIQUE PROPOSTION The ensuing years have allowed Wachsberger and The Capital to zero in on and hone the elements that set it apart. “Over this time, as our experience and portfolio have grown, we have come to realise that we have two major strengths and differentiators. The first is having apartments within our portfolio to

THE CAPITAL HOTELS & APARTMENTS

// IT TAKES AN ANTIHOTELIER, SOMEONE FROM OUTSIDE OF THE SECTOR, TO MAKE THE BUSINESS PROFITABLE // afford people longer stays,” he explains.

“The brain-drain that has taken place within the whole of Africa means that we have to import lots of skills from Europe, India, and many other countries. These clients prefer apartments as they are often staying for much longer, and we have been a major player in introducing this provision whose popularity continues to boom.”

The Capital’s still fairly unique management model has also been a significant boon, Wachsberger

furthers, giving it complete control over the offering and identity, as well as the ability to implement practices across the entire portfolio with ease. “The other major discerning factor for us is that we are an owner-operator. This goes against the norm, which is still to have a management company simply putting a known name to other people’s properties.

“This has really been key to our success. It has removed any sense of bureaucracy from the decisionmaking process, and means that we are able to pivot, change and adapt to volatile and unpredictable circumstances very quickly.”

Bureaucracy is not the only ingrained hampering characteristic that The Capital has decided to shun, Wachsberger explains. “Ego is a massive thing in the world of hotels, as it leads to people overcompensating and making

things way fancier than is sustainable or profitable. We take ego out of the equation and design our hotels backwards, so that we don’t get caught in the trap of overbuilding and generating no returns.”

We created our business at a time of crisis with risk defences in place, so that if ever we found ourselves in trouble, we would have a plan. Thus we find ourselves in the heart of the Covid storm, with terrible trading for over 18 months, the only hotel group able to adapt to and expand despite the new situation,” Wachsberger adds of how The Capital is now uniquely placed to capitalise.

“While a number of players can see the opportunity in crisis, nobody else has the funding or the ability to execute on being a purchaser of distressed properties.

This is our philosophy: to use the bad times to grow.”

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INDUSTRY FOCUS: HOSPITALITY

ABILITY TO CAPITALISE South Africa is unlike much of the rest of the world, according to Wachsberger, where an overload of prospective hotel buyers meets a dearth of sellers. “In South Africa it is entirely the opposite,” Wachsberger counters, which brings stunning opportunities. “Sellers and distress abound, and we are literally the only feasible buyer I know of.

“As such we have been able to secure hotels at incredible, once-in-alifetime prices simply because we have been able to raise the money to purchase these properties where no-one else can.”

There is no sense of this being a purely self-serving pursuit, Wachsberger is anxious to relate its impacts are much more widereaching and vital. “We are doing this to save jobs. Looking at our recent acquisitions, all of the staff were about to be retrenched and we have come in and spared all these livelihoods.

“Of course, it suits our business to buy distressed, but ultimately it supports a whole industry’s ability to survive and continue to contribute to the entire economy. Not just jobs, but through the whole hotel supply chain, which has been equally

// WE INTEND TO SPREAD OUR HOTELS ACROSS SOUTHERN AND EAST AFRICA, AND BUILD ON WHAT WE HAVE ALREADY ACHIEVED AS THE LEADER IN THE SECTOR //

brutally impacted as the hotel groups themselves.”

Having built the business to withstand what Wachsberger terms a ‘black swan’ scenario - this sudden, and for many ruinous, stop - The Capital was then, characteristically, able to capitalise.

“Step two was to adapt the business to the new situation on the ground, and then step three was to take advantage of the opportunities that inevitably arise.”

OPEN DURING SHUTDOWN With an entire industry and every competitor mandated to close, The Capital once again defied the norm to maintain an enviable continuity of business and occupancy. “We were the only hotel group able to keep its assets open and running , with all but one of our 10 remaining operational even during the harshest lockdown and

ROUBLER: ONE SEAMLESS SYSTEM. WORKFORCE-WIDE IMPACT. As the fastest growing hotel group in South Africa, The Capital Hotels & Apartments needed a flexible and modern workforce management system to support their expansion. They wanted a partner that was as disruptive in the technology industry as they were in hospitality, and Roubler fit the bill perfectly.

With Roubler, The Capital Hotels has increased efficiencies across the entire workforce, helping them scale the business and remain agile. As a result, new staff are onboarded faster, managers spend less time on admin, and employees can manage their work life via the mobile app.

Roubler provides an all-in-one system covering the complete employee lifecycle: from onboarding, to time and attendance and rostering. They now have complete oversight across the entire group to ensure employees are working the right hours, and are being paid correctly across their various locations.

At a site level, managers save valuable time with features like smart rostering and leave management in the mobile app. Managers also gain valuable insights from real-time performance analytics and forecasting capabilities, allowing them to make more informed decisions.

Employees’ lives are also made easier with the Roubler app. They can view their roster, book leave, access documents and training and update their personal information, without the need to log in to different systems or request information from HR. Roubler is a cloud-based workforce management software system. Incorporating everything they need to recruit, onboard, roster, manage and pay your team, Roubler provides one seamless system for all your workforce management needs.

To find out more about how Roubler transformed The Capital Hotels & Apartments workforce management processes visit roubler.com/capitalhotels or contact our friendly team directly on +27 10 500 2223.

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All-in-one workforce management software Everything you need to recruit, onboard, roster, manage and pay your staff.

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Roubler has enabled us to manage our workforce far more efficiently across our group of nine hotels nation-wide.

John Skelton Chief People Officer The Capital Hotels & Apartments

roubler.com/capitalhotels

INDUSTRY FOCUS: HOSPITALITY

// WHAT REALLY EXCITES US IS OUR STATUS AS THE GROUP WITH THE FASTEST, STRONGEST GROWTH // with an average occupancy of 80%.

“We were the first to rush to government’s aid to quarantine and isolate passengers arriving from overseas, which then landed us the approval to keep our doors open. As many as 50% of the repatriation flights that came to South Africa then stayed with us, booked and paid for by the government of South Africa.

“We still made a loss, but we lost an awful lot less than all the others who had to close.

© THE CAPITAL HOTELS & APARTMENTS

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“As we were the only ones open, we consolidated all the essential services business from rival hotels. We even created a hospital in partnership with the largest medical aid in South Africa, Discovery Health,” Wachsberger goes on, a feat of adaptability impressive even for one so known for it as The Capital. “We turned the entirety of one of our hotels into a centre for Covid-positive patients, to relieve the pressure on the hospitals themselves.

“All of this allowed us to survive the harshest of the lockdowns, and put us into a position where we were able to then explore these purchasing opportunities of bankrupt hotels.”

CONSTRUCTION AND ACQUISITIONS Planned expansion into Southern Africa has had to be put on hold as The Capital maximises opportunity in South Africa. “We are already in

the big four cities - Johannesburg, Pretoria, Durban and Cape Town - and we are about to start our rollout into the sub-national cities.”

Construction of The Capital Mbombela’s R205m hotel is central to this, the third new product in the group’s portfolio this year with an opening anticipated for November 2021. “It might have been a brave decision to build it during Covid,” Wachsberger says, “but we actually thought it the best time to construct, in time for re-opening and all the anticipated catchup business after the pandemic.

“There hasn’t been a new hotel in a location like this since our 2010 World Cup, so we think it will do very well,” he elaborates. “In Africa there simply isn’t the competition a constant supply of new hotels engenders, so if something is done well, it will be successful.

THE CAPITAL HOTELS & APARTMENTS

© THE CAPITAL HOTELS & APARTMENTS

“You don’t have to try to find perfection in service to stand out from competitors in Africa. You need to give guests everything they need, and nothing they don’t.

It has to be consistent, solid and

// IT SUITS OUR BUSINESS TO BUY DISTRESSED, BUT ULTIMATELY IT SUPPORTS A WHOLE INDUSTRY’S ABILIT Y TO SURVIVE AND CONTINUE TO CONTRIBUTE TO THE ENTIRE ECONOMY //

driven in accordance with value.

“It takes an anti-hotelier, someone from outside of the sector, to make the business profitable,” Wachsberger states, whose own background in mergers and acquisitions has proven a huge asset to The Capital’s success to date, and a further two iconic hotels have been snapped up by The Capital including an R15 million investment to renovate 15 On Orange for reopening in August. “We are midway through the development of our much larger Zimbali acquisition,” Wachsberger reveals of the second, which will retain approximately 140 employees and deliver over R40 million in upgrades to the legendary Fairmont Zimbali Resort on KwaZulu Natal’s North Coast.

Everything points to further dominance to come for The Capital, and the group has the ambition

to match. “In five years we should have 40 hotels, based on our growth trajectory ramping up from opening two hotels per year to three in 2021, and the growth opportunities available,” Wachsberger finishes. “The portfolio acquisition opportunities are such that we could double our size in a single year now with the hotels that are out there.

“For this reason, we aren’t rushing too far too soon - there is too much potential still here for us to explore. We intend to spread our hotels across Southern and East Africa, and build on what we have already achieved as the leader in the sector. We have everything in place to remain the best.”

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