Enterprise Africa - September 2021

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

September 2021

www.enterprise-africa.net

Five-Star Strategies Allow The Capital to Seize Opportunities Exclusive interview with The Capital Hotel Group CEO Marc Wachsberger

ALSO IN THIS ISSUE:

Light Fibre Infrastructure / AstraZeneca / Masterparts / AWCA

A global company with a passion for local sustainable health access.

Grounded in science, our innovative programmes include:

Activity ID: ZA-2901 Expiry date: March 2023

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

There is a bigger but quieter pandemic underway in South Africa away from Covid-19: Diabetes. A large section of the population suffer the condition but do not manage it correctly resulting in further health complications. For Grant Newton, CEO at the Centre for Diabetes and Endocrinology (CDE) this is unacceptable and threatens future growth across all sectors of the economy. His business is trying to integrate digital technology into the healthcare system to ensure better outcomes for patients. It’s a path taken by many industries with undeniable results.

The situation is similar for Standard Lesotho Bank. New CEO Anton Nicolaisen is keen to drive digital adoption so that the unbanked population in the country can be absorbed into the formal banking environment.

Again, at Pay@ - Stellenbosch headquartered payment aggregator – where collection in cash through a large retail network was put under pressure by the pandemic, a digital offering has been expedited to ensure payments continue smoothly. The result? Continued growth, and strong projections going forward.

Ayo Ghana is the perfect example of how disruption is changing legacy practices that are no longer suitable for the masses. Cheap, fast, affordable, convenient insurance products, delivered via mobile money, last for short terms – it’s painfully obvious, and credit must go to MTN for taking the risk. CEO Francis Gota tells us more.

Digital technology is clearly the way forward for almost all businesses and industries: disrupt or be disrupted. Tell us how your business is developing its digital strategy, we’re on LinkedIn.

Joe Forshaw

EDITOR

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

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

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

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AYO GHANA We exist to make customers lives better THE CAPITAL HOTELS AND APARTMENTS Five-Star Strategies Allow The Capital to Seize Opportunities ASTRAZENECA Serving Every Africa Patient Through Collaboration, Innovation & Dedication THE CDE ‘Revovational Transformation’ Underpins CDE Stability MTN BUSINESS MTN Business Pairs With Quro for Life-Changing Connectivity LIGHT FIBRE INFRASTRUCTURE Digging Deep to Deliver Digital Inclusion MASTERPARTS Masterparts in Fast Lane on Growth Plan ALSTOM UBUNYE Driving the Future of Sustainable Southern African Rail STANDARD LESOTHO BANK Striving to Reach and Include Every Lesotho Citizen AWCA INVESTMENT HOLDINGS Accelerating Empowerment for Aspirational Women

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CONTENTS

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CAPITAL LEGACY 20 Questions with Brandon Garbutt IEMAS INSURANCE BROKERS Belongings & Business, Family & Future: All Secured With Care PAY@ Future Proofing Payments by Embracing Digital FIRST EQUITY Gearing Up for Post-Pandemic Take off ADUMO Digital Payment Solutions to Accelerate Growth and Change FS SYSTEMS Cutting-Edge Solutions to Protect People, Property and Assets KALLOS GLOBAL Pick of the Pickers GLOBEPAK Project Siyakhula Propels Globepak SCRIBANTE CONCRETE Durable, Reliable Solutions Given the Personal Touch www.enterprise-africa.net / 5

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FOCUS ON: AYO GHANA

WE EXIST TO MAKE CUSTOMERS

LIVES BETTER AYO GHANA IS THE MICROINSURANCE BUSINESS OF MTN AND MMI. TO DATE, THE BUSINESS HAS GROWN FROM A ZERO BASE TO REACH MORE THAN GH₵5 MILLION IN PREMIUMS EACH MONTH. THIS IS A BOOMING BUSINESS WHICH IS LOOKING TO DRIVE AN INCLUSIVE INSURANCE INDUSTRY IN GHANA, THROUGH QUALITY PRODUCTS AND EXCELLENT SERVICE DELIVERY.

Ghana remains, for many, one of Africa’s ongoing success stories.

Years of relatively consistent economic growth and a strong movement towards political stability through the adoption of a democratic multiparty system have allowed the country to thrive. Now boasting strong, modern industry sectors, Ghana is a partner for the rest of the world. However, the onset of the Covid-19 pandemic has left major scars on the country with the economy contracting by 3.2% in the second quarter of 2020 and 1% in the third, according to the World Bank. This saw Ghana slide into recession for the first time in 38 years.

Quickly, many people were worried about being unable to work, being admitted to hospital, contracting the virus, and drumming up big bills should extensive treatment be required.

Insurance, not traditionally popular across the country’s more than 30 million people, quickly became more attractive. But, as is the case across the continent, the barriers to entry remained.

Cost, availability, suitability, and understanding remain foremost brakes on the drive of insurance penetration across Africa. Thankfully, technology is changing that.

MAKING IT EASY FOR PEOPLE TO BUY INSURANCE POLICIES, MAKING IT EASY FOR THEM TO USE IT, MAKING IT EASY FOR THEM TO CLAIM – THAT IS WHERE WE HAVE OUR COMPETITIVE ADVANTAGE AND THAT IS WHERE WE WILL BE STAYING

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THAT EXCITES ME AS THE VISION OF THE BUSINESS IS TO CREATE A FUTURE WHERE EVERYONE USES INSURANCE, NOT JUST HIGH-COST INSURANCE FOR THOSE WHO CAN AFFORD IT

Francis Gota, CEO of aYo Ghana tells Enterprise Africa that this microinsurance provider is offering short-term health and life products, directly through the phone of a user. Utilising the mighty MTN subscriber base of around 23 million people, aYo Ghana has precise access to a customer base that can buy products in minutes, with a few clicks.

“The aYo business started operating in Uganda and Ghana came onboard in 2017. We launched our first product, Recharge with Care – which leverages mobile money transactions to give insurance cover to both the sender and recipient,” he says.

“Recharge with Care is a very important product and allows you to gain insurance cover by paying with your airtime.

I remember when we launched and on the first day we had 243 people sign up; on that first day, we generated GH₵130 Ghana in premiums. Today, we are looking at around 10,000 people signing up on a daily basis and we are looking at premiums reaching almost GH₵5 million on a monthly basis. The business has grown tremendously in a short period of time.”

GHANA GROWTH Currently active in Uganda, Ghana, Zambia, and most recently Côte d’Ivoire, aYo is a product of MTN and has enjoyed a very strong growth, building its base by offering low cost, easy to manage, quick to pay out insurance cover, delivered through cell phone and mobile network infrastructure.

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As discussed with aYo Holdings CEO Marius Botha in Enterprise Africa’s April 2021 edition, the business is answering a need on the continent by utilising a distribution method that was previously unexplored by the industry; and the growth potential is phenomenal.

“11 million is a great milestone but still a small drop in the ocean. Our ambition and vision is to really become a unicorn and target 50 million or 100 million customers on the platform and that would be powerful, making us the largest insurer in Africa,” he said.

Francis Gota is equally enthusiastic and optimistic about future opportunities, with Ghana set to play a key role in the company’s strategy.

“Recharge with Care is now up to around 4.5 million customers which we are very happy with in a space of less than four years,” he says.

“In terms of claims, we’ve paid around GH₵4.2 million. That excites me as the vision of the business is to create a future where everyone uses insurance, not just high-cost insurance for those who can afford it. We leverage technology to offer vital, sensible, and easy-touse insurance to the low-end and medium segment who think that insurance is only for rich guys and who are excluded from financial systems. It excites me that claims are growing and people are truly benefiting from the insurance solution.”

FOCUS ON: AYO GHANA

INCLUSION IMPROVEMENT There is no question that the aYo solution is helping to drive not only participation in the industry in Ghana, but financial inclusion where it is sorely needed.

“Looking at the National Insurance Commission (NIC) reports for 2019, gross written premiums in Ghana are measured by the contribution of premiums to GDP. In Ghana, insurance penetration sits at 2%. The government, through the NIC, is now trying to lift this figure,” details Gota.

Demonstrating the disruptive nature of the business, aYo is already a sizeable player in the market. “Looking at the top ten companies, if aYo Ghana was a fully-fledged insurance company, with the premiums that we generate (around GH₵20 million in 2019), we would have been among those top ten life insurance companies.

“That shows how we are competing with the traditional insurance firms. Looking at micro insurers, there are three key players: aYo, BIMA and MicroEnsure. In 2019, we generated GH₵20 million in premiums. MicroEnsure which has been around for around 10 years generated GH₵7.5 million. BIMA, which started operating in 2010, generated around GH₵40 million in 2019. It just shows how we are growing in the industry,” says Gota.

Before the onset of the pandemic, the insurance market in Africa was expected to grow at compound annual growth rates of 7% per annum between 2020 and 2025 – faster than

North America, Europe and Asia. Obviously, the Covid crisis has impacted growth figures but, according to Mckinsey & Company, the African insurance market’s immaturity points to significant scope for growth, with levels of insurance penetration in Africa half that of the world average measured as a percentage of GDP, and premiums per capita are 11-fold lower than the world average. Agents and brokers are still the main distribution channels, an area where aYo will challenge.

“The way we deliver our solutions is digital and contactless,” says Gota. “We make it very easy for customers to sign up and use our solution. Many insurance companies are now trying to follow this idea, especially because of Covid. In terms of disruption in the insurance industry, aYo Ghana is a key player now and we are expecting a lot of people to come on board.

“For me, insuretech is the way to go,” he adds. “Making it easy for people to buy insurance policies, making it easy for them to use it, making it easy for them to claim – that is where we have our competitive advantage and that is where we will be staying. If you leverage technology, you bring down your costs. For microinsurance to be profitable, you have to make sure you scale quickly and drive down your operational costs – that is where technology plays a critical role. Internally, your claim cost has to reduce because you need to quickly verify claims at a cheaper cost. We intend to stay in the aYo way of operating but, we are not only using technology to offer

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IN TERMS OF DISRUPTION IN THE INSURANCE INDUSTRY, AYO GHANA IS A KEY PLAYER NOW AND WE ARE EXPECTING A LOT OF PEOPLE TO COME ON BOARD products to the low and mid income markets; we also want to offer solutions to higher income customers where most of the traditional companies are operating.”

This, combined with other initiatives, will allow aYo to continue on its rapid growth trajectory as the company looks to further expand within the MTN subscriber base. Recharge with Care and Send with Care will soon be added to with new products, as Gota explains.

“We are looking to launch new products, we have started working on ideas and by the end of the year we would like to launch a new product that is tailor made to suit customer feedback. The design is influenced by the feedback we get from customers around our existing products. Recharge with Care, which provides GH₵100 hospital admission cover and hospital cost benefit for each additional night you spend in hospital, is a very popular product. We also have Life Cover, which provides death benefits up to GH₵6000 and covers the insured as well as another family member for free. In Ghana, the family system is strong and customers were demanding that we extend the cover to other family members. Our new product will be about extending cover for family members; extending hospital cover to children or other members.”

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Francis Gota - aYo Ghana CEO

FOCUS ON: AYO GHANA

As a group, by June 2021, aYo had passed the 12 million customer mark, showing clearly that its ideas and methods are well-suited to the markets in which it operates. After launching in Côte d’Ivoire in August, aYo can expect fast and powerful growth through the second half of 2021.

PASSIONATE AND LEARNING As telcos look to diversify, and control market share in a potentially cashless future Africa, more financial services offerings will emerge. Mobile money transactions increased by 23% in 2020, reaching $490 billion – larger than the total GDP of Nigeria. The movement of funds, increasingly digital as a result of the pandemic, plays into the hands of the powerhouse telcos. Fortunately for aYo in Ghana, the company has the experience and know how that will be difficult for others to match.

“We are always learning and improving on things,” says Gota. “As a business, we are passionate about that. If we want to provide a future where everyone can use insurance then the experience has to be top notch and hassle free so that is one of the areas that we will continue improving on.

“There is a lot of opportunity because as you approach, you learn more about the new opportunities that are out there. Last year alone, we did GH₵44 million in gross written premiums during the Covid period. When customer experience is top notch, we are giving customers value for money; and customers always want more, so we see many opportunities to grow with our customers.”

There is an inevitable upcoming struggle between Africa’s mobile money providers, each desperate to pull out small extras from each customer. By offering financial services products – following a tried and tested path taken in China – the telcos could add colossal figures to their books. At aYo, the focus remains on the provision of insurance cover for all.

“We exist to make customers lives better,” concludes Gota.

“We are here to ensure customers have resilience to risk so they can go about their activities with peace of mind. This is what we are always looking to highlight. When customers are happy, our financial performance will be good. We are customer-centric and we deliver value.”

VISIT WWW.AYO4U.COM

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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 / 13

INDUSTRY FOCUS: HOSPITALITY

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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 //

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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

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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ASTRAZENECA

Serving Every Africa Patient Through Collaboration, Innovation and Dedication PRODUCTION: Timothy

Reeder

AstraZeneca needs little introduction, the renowned global innovation-driven biopharmaceutical company pushing the boundaries of science to deliver life-changing medicines. In the African Cluster the company’s commitment to reaching every single patient, private or public, remains very clear, and President Barbara Nel describes her teams’ steadfast stance on collaborating and building sustainable partnerships with which to innovate and serve across the continent.

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Barbara Nel Barbara Nel AstraZeneca Country President South Africa, Sub Saharan Africa & French Speaking Africa

INDUSTRY FOCUS: HEALTHCARE

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AstraZeneca’s African cluster has been working to deliver knowledge and value to patients for almost 30 years, transforming lives and ensuring access to the most innovative medicines. Its presence covers a large territory on the continent from Angola, Nigeria, Ghana, through the likes of Ivory Coast and Cameroon, reaching Rwanda, Kenya and Ethiopia, among others.

As Country President of the African Cluster, Barbara Nel’s responsibility is all-encompassing, incorporating South Africa as well as the whole of SubSaharan and French-speaking Africa.

Nel’s unbending determination to meet the needs of African patients is backed by deep experience as a business leader and a proven track record of developing, implementing and embedding innovative strategies.

AFRICAN AIMS Building on expertise accrued across numerous roles globally and across all emerging markets, now a decade into her career with AstraZeneca, Nel begins with a rundown of some of what takes place under her stewardship. “Within the African cluster our main focus is around how we, as a science-led, innovative company, bring new molecules and new indications to serve patients in Africa.

“Even just taking the last eight months, we have had 27 regulatory approvals for either new molecules that we can bring into many of our countries, or new indications for existing molecules pointing to potential new applications,” she reports.

“The disruption that Covid has created in all industries, but notably in pharmaceutical and healthcare, has made us closely examine how we adapt,” Nel goes on. “We have been in Africa for just shy of 30 years, and crucial for us is a continuation, and furthering, of that phenomenal partnership.

“We are committed to responding to this big question of access through

// THERE’S NOTHING LIKE DISRUPTION TO DRIVE INNOVATION // constant innovation, challenging ourselves to serve every patient.”

The pandemic of course gave AstraZeneca and Nel great cause to innovate, Nel asserts, one solution forged being a new, streamlined, ‘lowtouch’ approach to care. “In response to the big drop in new diagnoses of non-communicable diseases such as cancer, asthma and diabetes that we observed, we are creating, in

PUMUA event Kenya World Asthma Day neb machines handover

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ASTRAZENECA

partnership with BrandMed, a patient journey where there are fewer physical points of contact with the healthcare system. It is a one-stop shop for the patient offering them an integrated view, and less time spent in a hospital but a much more holistic view to the treatment they receive.”

Consistent across AstraZeneca’s primary care areas in Africa is the belief in science’s ability to change our vision of the world and how we deal with the diseases that affect us. The pandemic has only made it push harder at the limits of what is possible within the African cluster.

CRUCIAL COLLABORATION “There’s nothing like disruption to drive innovation,” Nel states with customary pragmatism, explaining that again access and patient convenience is at the centre. “A lot of our work at present is around ecosystems, and the behavioural changes that we have observed among patients, hospitals and healthcare professionals. We want to consider how patients are accessing healthcare moving forward.

“We have also had to adapt the way in which we support healthcare professionals, quickly pivoting away from in-person seminars to online platforms and in fact connecting a bigger audience able to put forth the realities they were facing.”

Despite the obvious and expected competitive edge to the African pharmaceutical market, working together remains absolutely pivotal to both the present and future of African medicine. “At AstraZeneca we have always placed a lot of importance in collaboration in our approach,” she tells us, as with its Africa PUMUA Initiative which required partnerships with governments, healthcare professionals and societies.

“Swahili for ‘breathe’, this initiative looks to improve and redefine asthma care for both adults and paediatric patients,” Nel unpacks. “Very often we are associated purely with treatment, but

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INDUSTRY FOCUS: HEALTHCARE

actually this stage comes very late in the patient’s timeline. We are working closely with companies producing equipment to assist with the administration of our medication and focusing on strengthening local health systems and building health worker capacity.”

Under Nel’s leadership innumerable forward-thinking initiatives have been implemented, with aims spanning access to sustainable healthcare, early detection of disease, promotion of

// AT ASTRAZENECA WE RECOGNISE THAT BREAKTHROUGH SCIENCE AND HEALTHCARE DOESN’T HAPPEN IN ISOLATION; IT IS THE RESULT OF COLLABORATION AND PARTNERSHIP //

// YOU CAN HAVE COURAGE OR YOU CAN HAVE COMFORT, BUT YOU CAN’T HAVE BOTH // primary prevention and early detection of disease, promotion of primary prevention and young health. Common across all is this philosophy of being stronger together.

“At AstraZeneca we recognise that breakthrough science and healthcare doesn’t happen in isolation; it is the result of collaboration and partnership.

Our commitment to our patients and our responsibility to work closely with partners and stakeholders who can join us along the whole patient journey is integral to our work in Africa, to create a sustainable impact and to find answers to health challenges.”

INSPIRING LEADERSHIP Faced with the unprecedented challenge of Covid, Africa has been spurred to undertake a vaccines revolution, with the power of science and collaboration at the forefront. “What we have done with our vaccine so far in Africa has been a real success,” Nel

recognises. “It demonstrates that even a big multinational like AstraZeneca is prepared to take risks and show a very high level of agility.

“The AstraZeneca vaccine through COVAX has reached over 129 countries, and in Africa 39 countries are currently benefitting from its availability. We are enormously proud of this commitment to delivering our vaccine to so many countries at no profit during the pandemic. Around the world to date, more than one billion doses of Covid-19 Vaccine AstraZeneca have been released for supply to over 170 countries, and approximately two thirds have gone to low- and lower-middle-income countries. AstraZeneca is the third biggest supplier of Covid-19 vaccine doses in the world.”

Nel herself has taken genuine inspiration from the progress and accomplishments the pandemic circumstances have engendered. “One real challenge has been living the science, the

PUMUA Handing over the nebulisation machines at Kenyatta Kenya

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ASTRAZENECA

Barbara Nel Country President AstraZeneca and Dr Riaz Motara CEO Brandmed

// IN A PREDOMINANTLY FEMALE ORGANISATION WE HAVE BEEN ABLE TO EMBRACE RISK-TAKING AND AGILIT Y, AND ENSURE THAT WE FUNCTION IN AN INCLUSIVE WAY // pandemic and the rollout of the vaccines all at the same time,” she divulges. “It has really inspired me from a risk-taking perspective to see some of our senior leaders show the level of nimbleness and adaptability to juggle these enormous responsibilities simultaneously.

“For me, demonstrating that leadership and fostering that innovation in a company is exactly what we have done in the African cluster,” Nel says, and it would be impossible to argue otherwise. “We want to position Covid from a business perspective as a positive thing, a big disruptor which has spurred us to say that now is the time to do the things we had stated for the future.”

Even after 28 years in the pharmaceutical sector, 10 with AstraZeneca and two as President of

the African Cluster, Barbara Nel is using these remarkable situations to hone her own leadership. “The most important thing is to work with your team, because in a situation like this nobody has the answer,” she states frankly.

“As I always say, we had to develop different muscles. Now being in the midst of a third powerful third wave we have learned a lot from the first and the second, and we now know what we need to do to continue to put our people first and deliver for patients in the African cluster.”

Barbara Nel is in a crucial role as an accomplished, respected female leader, supremely supported by an organisation renowned for inclusivity.

“AstraZeneca in Africa has for the first time been recognised as a top gender

employer. In the African Cluster we are around 60% female, as are the majority of my senior leadership team. In a predominantly female organisation we have been able to embrace risk-taking and agility, and ensure that we function in an inclusive way.”

Asked for her final words of insight for any aspiring African, or indeed global, leaders, Nel is clear in her core principles. “Take risks, rather than waiting until everything is perfect, and then learn as you go along. You can have courage or you can have comfort, but you can’t have both.

“Believe in and love what you do.

I am inspired every day, not just by the innovation that we inspire but by the difference that we make to and the impact that we have on people’s lives.

That is what drives me.”

WWW.ASTRAZENECA.COM

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THE CDE

‘Revovational Transformation’

Underpins CDE Stability PRODUCTION: Karl

Pietersen

Treating chronic healthcare conditions, like diabetes, in South Africa should be transformed for the better thanks to a focus on the speedy introduction of digital technology. This revolution is being driven by the Centre for Diabetes and Endocrinology and CEO Grant Newton tells Enterprise Africa that progress is already underway.

//

The age of digitisation in healthcare is here. Where retail, real estate, travel, hospitality, finance, and more have been disrupted by technology and digitisation, healthcare is following. This transformation is both welcomed and feared by those active in the industry as it brings waves of change which require upskilling and learning, but outcomes can result in vast improvements for patients.

Unfortunately, the benefits that come with a technological transformation have not been quick to materialise in healthcare, and according to McKinsey & Company the reason for this differs by region but is usually not because of the technology itself.

Rather, culture change is a barrier which struggles to be hurdled.

For sufferers of chronic conditions, digital transformation can provide major leaps in terms of care quality and, ultimately, treatment outcomes.

Diabetes provides a clear example.

Global healthcare company Abbott launched a glucose monitoring system through which users can gain large

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amounts of data, and timely readings of their current level using a smartphone or digital reader to scan a sensor which is attached to the arm through a pain free adhesive. The system is designed to remove the need for finger pricking, which is uncomfortable and inconvenient, and only gives a snapshot of the overall picture. For many, this innovation has changed the way diabetes is managed, and resulted in clinicians being able to provide much more precise guidance.

As the company has learnt more, the sensors have become smaller, stronger and more sensitive, and the information has been incomparable to previous regimes. By using technology in this way, people in healthcare have been empowered.

This is the vision of Grant Newton, CEO of the Centre for Diabetes and Endocrinology (the CDE), South Africa’s leading provider of specialist diabetes care, spanning all related conditions, and known as a ground-breaking organisation in terms of its business model.

His long-held idea is to blend the

expert humanity already present in healthcare with novel and exciting tech that is emerging as part of the fourth industrial revolution. Operating with 204 centres of excellence around the country, alongside 508 highly upskilled family practitioner, diabetology cardiovascular centres around the country, the CDE is positioned strongly to drive this revolution and deliver a unique integrated care model which incorporates multidisciplinary teams that can deal with all cardiovascular care.

REVOVATIONAL TRANSFORMATION “I coined the phrase revovational transformation. When we were starting this process of digitisation, we were in innovation. Then we realised that the fourth industrial revolution was not about innovation but about disruption and revolution,” he says.

In this fast-moving environment, where the end goal is less about profit but more about life and improving health, a digital transformation is no easy task – especially across a business and industry with such reach.

INDUSTRY FOCUS: HEALTHCARE

“Moving out of the dynamics of historic, legacy ways of dealing with healthcare, towards health 4.0, digital and AI, and things that are going to change the way that they do business through the flux that is going on around the globe at the moment, is what we need to do,” says Newton.

But South Africa faces a number of significant challenges that feed into the bigger problem. Connectivity, affordability, and perhaps most troubling but at the same time conducing for a digital revolt, trust.

“Because of the continuous onslaught onto private and public healthcare clinicians, there is a retreat.

In the current environment, there is a fear to treat and fear to be treated,” admits Newton, who has been involved in the healthcare space for more than two decades. “There is a disconnect, and from a business perspective that is the worst thing that can happen as the customer is disconnecting from the provider. The bottom line is that people are getting less healthy because they have lost contact with a formal clinical environment. It’s our job to bring that back together. Using technology is what we consider as the critical pivot to achieve that.”

Currently, growing levels of diabetes diagnosis is considered a global healthcare crisis. In South Africa, it is cited as a leading cause of death with some estimates suggesting up to 15% of the population could suffer the condition. By 2045, the International Diabetes Federation (IDF) expects 47 million people in the sub-Saharan region will have diabetes. But the condition is manageable and the CDE offers significant support. The challenge for the company is bringing the population into a formal clinician environment.

“Extending clinicians, putting them together with, and presenting them digitally to individuals, and then working on bringing in data that we’ve never had before – from a tracking device for example, where there is more information than you could ever

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glean in a consultation – and utilising that data for effective cost reduction of healthcare and increased access to quality healthcare – that is our problem statement,” confirms Newton.

By employing digital technologies including cloud-based big data management, AI organisation, videobased interaction, IoT collaboration, telemedicine, blockchain electronic health records, 5G powered wearable devices and much more, the process of developing a long-standing but adaptable treatment plan becomes more affordable, more detailed, and more measurable. But at the heart of the system remains a skilled clinician.

“Our approach is to grab the jewels of history, and there are some extraordinary jewels,” smiles Newton.

“You can’t lose humanity in the transfer.

What was in healthcare, which has unfortunately waned radically, is the humanity. There are still doctors and nurses in healthcare who have a vocation when they come into healthcare, and we don’t want to lose that humanity. In our minds, the trick is about integrating humanity and digitisation – not replacing humanity with digitisation. My philosophy is if I can replicate humanity in digitisation and still hold a thread to the humanity, that is a far more effective and efficient outcome than trying to replace humanity with digitisation – therein lays the disruption.”

WAKE UP DOCTORS The CDE started out in 1994, working for those with diabetes who had been underserved for many years. Medical schemes did not fund care for the condition correctly, and it was grouped in with general health conditions.

Suboptimal care was the standard. The establishment of the CDE saw a specialist programme developed by Professor Larry Distiller, a world-renowned Endocrinologist. From here, diabetes care in South Africa, and the idea of managed healthcare for a singular condition, grew significantly. The first medical aid scheme to participate was the Tafelberg medical

// WE REACTED BY REALISING AND ACCEPTING THAT THERE WAS GOING TO BE, AND IS, FEAR. THE PANDEMIC WAS A DISRUPTOR AND BUSINESS AS USUAL WAS HALTED // aid scheme. The provision of specialist advice and expert management programmes helped patients achieve results, and the company grew, expanding the number of excellence centres around the country.

Now, the fourth industrial revolution – described by President Ramaphosa as key in challenges around health, poverty, unemployment and inequality – is a driver of the CDE’s ambition as it adapts again.

“We have had to say, ‘wake up doctors in business, your patients/ consumers have sought a new doctor, and all of a sudden doctor Google is doing home visits and you don’t do that anymore’. How can we get you back into creating home visits? That is the structure of our business,” says Newton, discussing closing the chasmic disconnect between clinicians and patients.

“AI is a fundamental part of what we’re doing. When it comes to diabetic retinopathy screening, we are linking ourselves to the entire ecosystem of AI fundus cameras across the country.

We are setting up high value nutrition management programmes, we are working on physical management and wellness programmes, and we want to become not only the destination for the unwell but also for those who want to ensure they don’t become unwell.

“We believe that we are addressing the problem through empowering clinicians with digital, AI and telemedicine

Dedicated to a Healthy Nation Zydus Healthcare was established in South Africa 2007. Zydus Cadila has manufacturing capabilities across the value chain including formulations, APIs, vaccines, biosimilars, complex products (transdermals, topical etc.), animal health products and wellness products with more than 30 manufacturing plants worldwide including India, Germany, Brazil & USA. Zydus Cadila’s innovation programme is spearheaded by 1300 researchers across 19 sites. From NCEs to vaccines, biosimilars and niche technologies, the company is exploring different ideas and concepts, innovating constantly.

The local business remains focused on the following areas of therapy: • Pain Management • Cardiometabolic diseases • Critical care • Respiratory • And Neuropsychiatry

SIYAENZA

Zydus Healthcare South Africa expects to add further launches in other therapeutic areas, including cancer therapy. The newly established consumer health business will add further diversification and complement our existing interest in the management of diabetes mellitus.

Zydus Healthcare SA (Pty) Ltd, Block B, Southdowns Office Park, 22 Karee Street, Centurion, 0157.

Tel. no.: +27 (0)12 748 6400. ZYD/08/21.

INDUSTRY FOCUS: HEALTHCARE

healthcare, replacing stethoscopes and warm body pulse taking with digital tools.

The technology is there. How can we marry the legacy paternal hierarchical individual who came from a very positive medical school environment with the daily life of people who have moved on - those who go to doctor Google first, before going to their GP? “In the research, the fourth industrial revolution and healthcare 4.0 was our driver initially. We realised that the trending patterns of health consumers was different and changing quickly.

The access to far more information, the increase in curiosity amongst health consumers, and the ability for doctor Google to meet a lot of those needs changes the way we think. That was the initial inspiration for revovational transformation, but it was expedited very quickly when it became a critical business need rather than a necessary business need.”

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COVID CRISIS Operating a healthcare business as the Covid-19 pandemic roared through economies was and is a major undertaking, and requires careful but speedy decision making. For the CDE, providing care and advice to patients was essential as those with diabetes were quickly identified as being at high risk from serious complications thanks to a compromised immune system.

Continuing to deliver important services while shifting strategy to become Covid-secure was a challenge.

“Frankly, if we had not reacted like we did, we would have found ourselves in a very bad space,” admits Newton. “We reacted by realising and accepting that there was going to be, and is, fear. The pandemic was a disruptor and business as usual was halted. Family practitioners and specialists were sitting and waiting for patients in their consulting rooms, but

everyone was staying away. There was the fear to treat, the fear to be treated, and now a fear to be treated differently.

The opportunity there was that we could introduce digitisation much quicker.

Finding a reason for disruption is much easier than disrupting for the sake of disrupting. We began empowering clinicians with telemedicine, ability to connect digitally with patients, and simple things like incorporating booking reminders and the establishments of call centres to create a connection point between us as a catalyst between clinicians and healthcare consumers.”

This uncomfortable jolt towards its longer-term vision was unwelcome, the CDE was thankfully prepared. Digitisation in healthcare is not all new. Many innovations have been used for decades, and much of the modern technology now being trialled is already active in other industries, but for Newton progress

THE CDE

has been too slow and Covid kicked up the speed of an overhaul. The internal strategy and culture of the CDE was also challenged as clinicians close the edge of exhaustion required support.

“These people may have been trained as soldiers rather than clinicians as they are the infantry on the frontline in this battle, and giving them support is a privilege,” confirms Newton.

“Whilst there was devastation, and the ongoing impact of the mental health fallout with what we’ve been through, as well as clinician burnout, we have had to adapt as a business to be prepared.

“We are now engaging to ensure we build the personal resilience of clinicians, helping them to understand their own personal environment. Personal mastery is something we have to be introducing through clinical practice. Clinical practice has never had the advantage of corporate practice where you have these programs

and training mechanisms – that doesn’t happen in private clinical practice, let alone public clinical practice. We support those clinicians and help them revive and reconstitute their business in a completely different way. This is where we believe we have a multipronged approach towards the necessity for change.”

With more than 2500 clinicians around the country, supporting hundreds of thousands of patients, across multiple centres of excellence, total breakdown was not an option. “The CDE was founded by clinicians and not business people,” reminds Newton. This internal obstacle further embedded the need for a revamp in the industry.

“By changing our philosophy and engaging in healthcare 4.0 or the fourth industrial revolution, we continue to ask: how can we radicalise and disrupt?

It is my intention to disintermediate the current legacy health insurance market.

We want to work with the industry, but we intend to disrupt,” he says.

ALL NEW COMPETITION The CDE stands apart from others in the industry thanks to its strategic and concentrated focus, as well as its model which sees it partner across the value chain and through both private and public channels. In the future, Newton is keen to partner with medical schemes, insurers, payers as well as managed care organisations and other relevant bodies to ensure proper diabetes care is administered. Stats suggest that many in the country who live with the condition are not aware of it and are therefore unaware of improvements that could be made to their life with the correct management plan. But a collaborative approach to business is more difficult to arrange in a sector that has been traditionally focused on profit.

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INDUSTRY FOCUS: HEALTHCARE

“We have found that the economics have driven a new dynamic. Previously, the market was flush with cash and the growth was strong,” explains Newton.

“But there was heavy tightening in the regulatory environment and that increased the cost of access to healthcare and restricted the growth for big administrators. The medical scheme environment in South Africa was a community-led environment and there was no competition on price. What they appreciated was that their market was not growing but they had to continue to feed their big shareholders. There was a large consolidation into three big cohorts in the market. We moved from more than 100 medical schemes to just

Grant Newton

32 / www.enterprise-africa.net

63 in that consolidation process, and we have moved from 20 or so administration managed care organisations to less than 12. The market didn’t grow, consolidation happened, and the shareholders ended up coming down into value chain to ensure they continued to earn.”

This situation sees increased competition in the market, but for many the CDE remains a premier choice because of its emphasis on real healthcare outcomes for patients.

Corporate businesses, individual patients, and clinicians within the organisation appreciate the drive towards patient care excellence rather complementing a healthy balance sheet rather than the other way around.

“Historically, we never saw the administrators or managed care organisations as competitors in the value chain. Subsequently, all of the big competitors have realised that the only way they are going to feed the share price is to gain more of the wallet in the value chain, more of the wallet in the medical schemes, and the specialisation of dealing with managed care diabetes with designated service providers and integrated care models etc. That has been usurped by big, listed conglomerates who have come down and started to acquire clinical practices in the value chain. That has left the clinical practices scurrying, and there are not many like ourselves - clinician driven managed care organisations – that are not driven by consolidated insurers,” details Newton.

This forced home the realisation that some administrators are now directly competing with the CDE – and competing with strength. The nature of administrators means they have deep insight into their clients’ full financials and full intimate back office. This makes constructing products to compete with the delivery service partners in the market easy.

“We now have to look at our three-to-five-year plan,” says Newton.

“Do we end up competing with our clients because they are closer to the administrator and we are just clinicians?

Are we at the point where we convert our services to business-to-consumer rather than business-to-business? We are looking at all options.”

ALWAYS GROWING In what is clearly a dynamic environment, changing regularly but on the cusp of a major metamorphosis, a growth strategy is hard to pen. And market predictions especially in South Africa where economic stability has been absent for some time - are equally tough to prescribe. But the CDE is working to formulate for what certainties are already clear. The result is a flourishing business, helping more people across a range of disciplines.

THE CDE

“We are absolutely expanding,” assures Newton. “That’s expansion of our own product lines rather than being a price taker, and expanding by formalising more people in care onto annuity revenue streams rather than being this third party interaction.

“72% of diabetic patients have anxiety and depression and mental health is something we cannot ignore.

If we want effective outcomes based on diabetes, we have to address the mental health side - we are bulking up those teams to support mental health now too.”

Currently only active in South Africa, the CDE will be opening centres in Botswana, Zimbabwe, Kenya, Mauritius and, potentially, the Middle East. The idea here is to provide a ready-made offering for the market that comes with 25 years of workflows, protocols, structures and processes so that clinicians can get the best outcomes associated with patients living with cardiovascular chronic care, and now including mental health – appropriately labelled ‘CDE in a box’.

Locally, the company is preparing for the country’s National Health Plan by registering as a designated national service provider in the national health environment. The CDE is 90% black-owned with shareholders from government pension funds and the PIC. “We are positioned very nicely for externalising and internalising our business as the shift happens from private to a hybrid of public-private healthcare,” says Newton.

For patients, the CDE provides unrivalled care. For corporate clients, the company absorbs high levels of risk. “We want the least healthy people because we know we can make a difference,” insists Newton. “Whether you’re a life insurer, corporate, a medical scheme or a man in the street, give us your bad risk and we’ll help you through it – that is our value proposition rather than just providing a service.”

For almost 30 years, the CDE has been promoting a leading diabetes management programme, and as the seriousness and volume of cases

continues to grow in sub-Saharan Africa and around the world, now is the time for all involved in the government, medical and healthcare spheres to do whatever is necessary to combat and mitigate the ill effects of a killer condition which should not be as destructive as it is. If this means adopting and accelerating entry to techdrive digital healthcare sooner, then the CDE will be ready.

“When people think about diabetes, they don’t think about the cardiovascular issues, or the mental health issues. So, what we’re trying to do is get people living with diabetes, opposed to patients who have diabetes (an important nuance), living a better quality life.

“There has been an evolution from a family business to an organisation that can now extend the philosophy and legacy of that family – those founding people – into creating extended care, bringing more quality care to more people. We aim to become a gentle part of the life of every person living with a chronic care disease.”

Unfortunately, the adoption of value-adding innovation is not possible without sizeable investments from those with spending power. Fortunately,

digitising healthcare is showing signs of ROI like in the case of Abbott and the Freestyle Libre sensor which has been onboarded by major healthcare programmes in the UK, USA, Canada, India, and more.

The CDE is at the forefront of digitisation and technological transformation, and that should bring positivity to South Africans with diabetes and related chronic cardiovascular conditions.

“The global mindset of moving healthcare towards a merge of humanity and digitisation. There are now new opportunities and we need to think through these opportunities, and be curios, to create new offerings. If that’s a blending of humanity and digitisation, that would be great. Revovational transformation is necessary, and if we are to face what is to come at us from digital, Covid etc, we are going to have to do things differently and quickly,” concludes Newton.

WWW.CDEDIABETES.CO.ZA

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MTN BUSINESS MTN Business Pairs With Quro for

Life-Changing Connectivity PRODUCTION: Tim Hands

Launched in 1994, the MTN Group is a leading emerging markets operator, driven by the belief that everyone deserves the benefits of a modern connected life. MTN Business’s heavy investment in telemetry and network infrastructure is now opening up Internet of Things (IoT) applications to many customers, and its peerless network is allowing SA start-up Quro Medical to bring life-changing remote patient monitoring to homes and institutions across the country.

//

The IoT has quickly become one of the most important technologies of everyday life, a relevance which will continue to gather pace as the potential of connected devices in helping people live and work smarter and gain complete control over their lives is fully realised.

It describes a system of interrelated computing devices, machines, objects, or people provided with unique identifiers (UIDs), able to transfer data over a network without requiring human-to-human or human-tocomputer interaction.

“The power of technology becomes so much more important when it can save lives,” MTN recognises, and the IoT is already seeing major impacts in medical and healthcare applications. “With the ability to collect, analyse and transmit health data, Internet of Medical Things (IoMT) tools are rapidly changing healthcare delivery,” says HealthTech magazine.

“For patients and clinicians, these applications are playing a central part in tracking and preventing chronic illnesses — and they’re poised to evolve the future of care.” Innovative internetconnected devices improve efficiencies, lower care costs and empower better outcomes in healthcare, thanks to major advances in wireless technology, miniaturisation and computing power.

HEALTHCARE INNOVATIONS “The IoMT is rapidly transforming medtech’s role and relationships within health care,” confirms Deloitte’s ‘Medtech and the Internet of Medical Things’ report. “Connected medical devices will have a profound impact on patients, clinicians and the life sciences industry.”

Founded in 2018, health tech start-up Quro Medical has seized upon the opportunity and need to take technology into critical medical and healthcare settings, crafting a platform capable of collecting patients’ vital

signs, and employing to a smartphone to enable their remote monitoring.

The resulting data is then sent for processing and assessed by Quro Medical’s team of qualified health professionals, monitored on a minuteby-minute basis, 24/7.

This is the value of the IoT for Quro Medical: the ability to make an impact for many people in many locations at once, from a single location. “We combine state-of-the-art technology, clinical oversight and excellent clinical care to manage acutely ill patients in the comfort of their homes,” outlines Quro Medical CEO, Dr Vuyane Mhlomi. “This provides physicians and their patients with a safe and affordable alternative to hospital general ward or step-down facility admission.”

The Deloitte report recognises how transformative the application of such technology can be, even shaping Continues on page 38

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CONNECTIVITY: THE FUTURE OF INDUSTRIES, TODAY. By: Nicolas Blixell, Vice President of Ericsson Middle East & Africa Industries today are under constant pressure to improve product quality, boost factory efficiency, stay competitive, enhance safety, security, and sustainability, all the while remaining profitable. And by evolving certain technologies, we evolve the network platform which will fundamentally change the way we innovate.

Let’s take a look at the port and mining industries, two of the most crucial industries in the world: ports are fundamental to the global economy as they transfer up to 90 percent of the world's goods, while the mining industry produces $1.5 trillion worth of rare earth elements annually, accounting for 2% of global gross domestic product (GDP) on its own, as per the 2020 World Mining Data report.

However, due to the slow modernization and the large-

scale nature of these industries, certain efficiency challenges emerge. Issues like vessel and truck congestion at ports can slow down businesses, result in high handling costs of containers and lead to an increase in the price of goods.

These hold-ups can have a knock-on effect on economic development which is why it is vital that we use smart technological solutions to address these challenges.

Cellular networks bring unprecedented optimization value to port and mining sites, delivering a new level of process and operational efficiency that reduces costs, lowers environmental impact, and boosts economic value. The port of Livorno, for instance, which Ericsson has supported in enabling IoT, has reported that optimizing vessel berthing led to a 20% average cost reduction per year which was

THE POTENTIAL OF AUTOMATED OPERATIONS CAN REVOLUTIONIZE TELECOMMUNICATIONS COMPANIES CAPABILITIES

Atul Kayal, Chief Technical & Information Officer, MTN Benin

Sunaina Davet, Head of Managed Services Africa, Ericsson West and South East Africa

Sectors and industries across a wide spectrum are navigating the advances in technology and strategizing how best to leverage transformative tools such as automation to improve their businesses and ultimately their customers’ experience.

Digitalization is undoubtedly a significant force of change. New technologies, such as artificial intelligence, 5G, and IoT bring a transformative impact across most businesses and industries.

Digitalization plays a dual role as it redefines ways of working and core offerings and at the same time accelerates demand for what the industry produces. At the heart of much this technological evolution is data.

In our work with CSPs we are utilizing data to enhance operations.

Key to leveraging operational transformation are healthy and productive partnerships like Ericsson and MTN where we are working closely to leverage automation, to improve operational efficiency and reduce time to market for new services for Communication Service Providers (CSPs).

As CSPs introduce virtualized and software-defined infrastructure and prepare to expand their business in the digital economy, automation is essential to re-scale and re-purpose operations.

CSP partners like MTN Benin are beginning their journeys to a closedloop, “highly automated, low-touch” operations and orchestration system based on real-time data analytics.

Operations for CSPs in the past have focused on networks, the IT environment and KPIs – all measured utilizing different tools. However, with the goal ultimately focused on constantly improving customer experience, operations have to bring together those various tools to enhance what the customer experiences.

How can CSPs like MTN Benin be enabled with intelligent data driven approach to operations? Shifting towards an intelligent automated network operations centre is essentially about focusing on bringing together the various data elements, developing an appropriate infrastructure with applied automation rules and injecting them with smart tools developed to bring in advance actions, tasks or steps to either

equal to roughly 2.5 million Euros. Our work at Ericsson with Rotterdam World Gateway in implementing a private LTE network also saw an enhancement in performance, reliability, and data security of the terminal. In addition to securing all year-round operations, the private LTE network further enabled robust and cost-effective data communication for around 100 clients on the container terminal.

The port and mining industries are just two examples of where countless businesses around the world are currently being transformed by digital technologies. As industries start adopting digital technologies and automation, we aspire to enable these technologies through innovative cellular technology that maximizes productivity, reduces inefficiencies, and enables sustainability.

prevent operational outage, to move traffic quickly, and adapt to the needs and behaviors of customers proactively.

While this transformation is not easy it can be enabled through powerful tools, hours of data crunching, analysis and algorithms creating automation rules implemented in front and back-office environments. That transformation can shift competences by bringing in analysts who allow an engineer, for example, to monitor network performance in real time and react to challenges or predict peaks in usage.

These transformations with partners like MTN Benin are being implemented through processes such as Ericsson’s Automated Network Operations portfolio. This portfolio allows CSPs to enhance network performance and scaling across physical and virtual resources, as well as simplifying the way networks are run in terms of time and efforts required. Unique analytics applications allow CSPs to leverage untapped data into actionable insights and realtime decisions, ensuring a superior customer experience.

Embarking on this journey is critical in this data rich world. A recent managed services engagement between Ericsson and MTN Benin over the last 18 months has focused

on automating operations with improvements in areas such as automated alarm correlation so that the organization can be even more responsive to customer requirements or network performance. There has been a 15 percent increase in automated alarm correlation, 47 percent increase in automated ticket creation to respond to customer requests, with an additional 68 percent increase in automated work orders in the field.

In turn this has proven to not only improve network performance and quality but improve the overall availability of the network to MTN customers by enabling 55% reduction in faults on network sites and increase in data traffic and voice quality.

The foundation of MTN business is driven by the core belief that everyone deserves the benefits of a modern, connected life. A belief that enables MTN to make the lives of the people we serve a whole lot brighter. Being a Communication Service Provider, MTN Benin’s key focus is on enhancing customer perception and quality of services for customers. With automation and continuous innovation, MTN Benin is now better prepared, for unforeseen events such as outages, any degradation of quality of services etc.

Automation has not only simplified MTN Benin’s work environment, but it

has also supported in enhancing client perception in minimal time. In addition to that there is significant improvement in organizational efficiencies, network resiliencies and reduction in number of issues. MTN Benin is also preparing to launch Artificial Intelligence use cases this year in this enhanced environment to further boost service quality.

In a nutshell, strategically implementing automation in MTN Benin managed services has delivered significant business value by enhancing the quality of service, time to market, increasing the response rate to changing business requirements and reducing security and compliance risks radically.

This just shows the fantastic brave new world we embark on bringing predictability in MTN Benin’s operations. This is just the beginning of the journey in terms of automation capabilities. CSPs services enable the broad spectrum of industry sectors allowing customers such as MTN to develop specific automation use cases to enable customers to be understood fully and develop tailored and quality services that reflect the potential that 5G will bring to the world.

visit www.ericsson.com

INDUSTRY FOCUS: TELECOMS

Continued from page 35 what the future of care will hold.

“Connectivity between sensors and devices aids real-time patient care, even from remote locations,” it states.

“The large volume of data generated creates opportunities for new models of care and supports the delivery of medicine that is predictive, preventive, personalised and participatory.”

Quro Medical’s Co-Founder and Chief Operations Officer Zikho Pali agrees that there has long been a need of an innovative approach to treating acute patients in South Africa. “The

// WE PRIDE OURSELVES IN A PARTNERSHIP THAT WILL HELP GROW THE FUTURE OF PUBLIC HEALTH //

38 / www.enterprise-africa.net

healthcare sector across the globe has experienced extreme pressure and strain caused by the Covid-19 pandemic and desperately needs digital solutions to ease many of the problems experienced in it.”

With this innovation, Quro has pioneered South Africa’s first technology-enabled hospital-at-home solution. “What technology like this means for South Africa is a fundamental transformation of healthcare as we know it,” enthuses Dr Mhlomi. “For a very long time we’ve accepted the status quo despite repeated reports that call for a change in how healthcare is being delivered. We not only improve geographical accessibility to healthcare, but also financial access.

“Quro Medical is pioneering an innovative healthcare delivery and economic model, set to leverage the power of artificial intelligence and machine learning, using key patient physiological data as digital biomarkers to not only detect but to anticipate which patients are likely to fall into trouble.”

PERFECT PARTNERSHIP For many years, the US and Australia have led the way in IoT solutions for healthcare applications, which meant that Quro Medical faced the considerable challenge of finding reliable and affordable connectivity to make their solution work in South Africa.

When lives are at stake, network quality must be of world-class standard to enable rapid monitoring, understanding of and acting upon data, and MTN’s IoT connectivity offering banishes any prospect of delays in the data transmitted from a patient’s home to Quro Medical’s healthcare professionals.

“One of the main challenges that we faced was securing reliable and affordable internet connectivity,” Pali details, “that can keep up with the performance requirements of our technology, to enable us to reach patients in under serviced communities.

“MTN has the best network coverage in the country. For our

MTN BUSINESS

technology to be effective and safe to be used for patient monitoring, we need to minimise disconnections or prolonged interruptions in internet connectivity. In light of this, MTN was the obvious choice for us.”

MTN Business’s Acting GM: SME Songezo Masiso details the solution that was devised as a result of Quro’s approach. “To address the client’s requirements, we provided Quro Medical with mobile data connectivity in the form of MTN Made for Business Data S++ offering 6GB per month.

“We also provide Quro Medical with a daily usage report to address the client’s requirement to manage the data available,” Masiso expands. This report provides information on patient health as well as the amount of data used every day on each patient, generated through MTN’s telemetry platform.

“For our solution to work optimally and be safe for patient monitoring we need connectivity which is reliable, and to minimise prolonged disruptions,” Pali delineates, “and there hasn’t been a single moment of lapsed connectivity.

“We chose MTN as a connectivity partner because of its reach, but also the enthusiasm with which it embraces technology and how open it has been to an innovation like ours, adapting and tailoring its offering to meet our requirements.”

MTN REIGNS SUPREME At a time when MTN’s provision has to stand up to the strictest scrutiny, it has again been officially recognised

// WHAT TECHNOLOGY LIKE THIS MEANS FOR SOUTH AFRICA IS A FUNDAMENTAL TRANSFORMATION OF HEALTHCARE AS WE KNOW IT //

as the undisputed top network in South Africa. Following its retention of the crown in 2020, the first quarter of 2021 has again seen it outstrip the competition, with average download speeds of 64.29Mbps dwarfing the 32.76Mbps in second place.

“We have continued to maximise on the opportunity created by the increased spectrum, to expand and enhance our world-class network,” commented MTN SA CEO Godfrey Motsa.

“We are honoured as MTN to witness the continued growth in our network quality, and overall network performance. We have managed to constantly widen the gap between ourselves and our competitors to give our customers a superior experience,” added MTN SA Chief Technology and Information Officer, Giovanni Chiarelli. “We will continue to put our customer’s first by maintaining the high standards we have set for ourselves.”

In partnering with a network of this calibre, Quro Medical will obtain the high-quality, reliable internet connectivity required for its IoT ecosystem to function optimally, an astute choice bolstered by the $1.1 million recently secured in seed funding. “This investment will enable us to accelerate our growth and meet the increased demand from our clients,” Dr Mhlomi explained.

// THE POWER OF TECHNOLOGY BECOMES SO MUCH MORE IMPORTANT WHEN IT CAN SAVE LIVES // “We are focused on saving lives and enhancing patient care. The technology is the enabler, making all of this possible,” he added, as Quro seeks to become the home healthcare service of choice in Southern Africa. “As a young and blackowned company set to be a leader in healthcare innovation in Africa, we pride ourselves in a partnership that will help grow the future of public health.

“The fact that Quro Medical has partnered with South Africa’s best mobile network will provide us with the reliability and quality of connectivity that we require to provide South Africans with high quality healthcare at affordable rates,” concludes Zikho Pali.

“Quality and affordability don’t have to be mutually exclusive, and that is what our partnership with MTN signifies.”

WWW.MTN.COM

www.enterprise-africa.net / 39

LIGHT FIBRE INFRASTRUCTURE

Digging Deep to Deliver

Digital Inclusion PRODUCTION: Karl Pietersen

The recent completion of a major infrastructure project which will bring reliable, high-speed, high-quality fibre connectivity to communities down South Africa’s east coast has been completed by Light Fibre Infrastructure, one of the country’s industry leaders in long-haul telecoms and utility developments. www.enterprise-africa.net / 41

INDUSTRY FOCUS: INFRASTRUCTURE

//

Fibre roll out in South Africa is both encouraging and disappointing at the same time. The need for reliable, high-quality, high-speed internet connectivity is no longer debated.

It is today viewed by many as a human right; a driver of inclusivity, and a tool for advancing society. The digital revolution has resulted in a time where without connectivity it is difficult to participate in a modern, changing world.

But the country’s fibre roll out has been slow. Even today, as the most advanced economy on the continent, South Africa ranks 89th in the world and sits behind Ghana in Africa in ranking of mobile and fixed broadband speeds from around the world.

Much is being done to improve the situation which still sees many

// THERE ARE MASSIVE OPPORTUNITIES IN MANY COMMUNITIES ALL OVER THE COUNTRY // communities rely on expensive cellular data packages. In the government’s State of the ICT Sector report for 2020 from the Independent Communications Authority of South Africa (ICASA), figures suggested huge improvements in fibre roll out with a 5000% improvement in fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) subscriptions between 2015 and 2019.

According to the report, South Africa had 1.6 million fibre customers by 2019, up from only 31,843 in 2015. But, despite success in the major metros, large swathes of the country remain under-connected; and some of the big telecoms companies have slowed their rollout of fibre network.

However, the opportunities remain titanic and Johannesburg-based Light Fibre Infrastructure is busy working to bring connectivity to the whole of South Africa.

“There is still a large portion of long-haul infrastructure to be developed around southern Africa. We are busy with some smaller, although sizable, projects currently. We have identified a number of significant and sustainable projects in the future on the long-haul side,” says General Manager, Pat Kimmince.

Celebrating the recent completion of the Durban to Cape Town NLD5/6 – a 1700km fibre route traversing the country down the east coast - Light

COMMUNICATION IS KEY Mariswe is proud to have been a part of Liquid Intelligent Technologies SA’s National Long Distance 5&6 fibre project for the past four years.

Mariswe provided statutory control services as required by SANRAL, the Western Cape Government Department of Transport and Public Works, and various local and district municipalities. The success of a project of this magnitude depends on efficient working relationships and communication between all the parties. The firm played a critical role in facilitating effective communication among other services provided.

Due to work being undertaken on various sections of the project simultaneously, issues around occupational health and safety, quality control, production monitoring and reporting, and environmental sustainability were challenging. This project required out of the box management, agile decision making with quick reaction times and adjustments when required.

Weekly progress and planning meetings were held with Light Fibre Infrastructure’s management team. Risks were identified before construction commenced through obstacle and deviation registers, mitigation actions were agreed and implemented as required. Light Fibre Infrastructure did exceptionally well to accommodate the various requirements of the project.

Mariswe is a South African civil engineering firm established in 1972 with 10 offices throughout South Africa. The company has worked in most Sub-Saharan countries on a wide range of projects. In the past decade Mariswe has been involved in similar long haul fibre optic projects including a 1 000 km installation between Johannesburg and East London, an 800 km project in Uganda which was completed within seven months, a 250 km project in the DRC, and 285 km in Zambia.

Mariswe also provides civil engineering services in water, sanitation, transportation, structures, infrastructure planning and construction management. www.mariswe.com

42 / www.enterprise-africa.net

LIGHT FIBRE INFRASTRUCTURE

Fibre Infrastructure continues to solidify its position as one of South Africa’s industry leaders when it comes to turnkey long-haul telecommunications and utility infrastructure.

“There is a tremendous amount of infrastructure to be developed, not just from this project, but from a lot of

// WE HAVE ALSO FOCUSSED ON BUILDING OUR OWN NETWORK WHERE WE HAVE A DIVISION RESPONSIBLE FOR OPERATING THAT NETWORK //

the previous projects we have been involved with as, effectively, we have been building backbones for the various service providers around the country.

That has covered a lot of the main territories and towns across the route but there is still plenty of opportunity in terms of taking high-speed, reliable, high-quality interconnection services to many communities that are still reliant on the old cellular network towers which, as we all know, from a capacity, quality and speed point of view are nowhere near the technological abilities that we are building. There are massive opportunities in many communities all over the country.”

NLD5/6 Connecting Durban and Cape Town, this exciting mega project saw Light Fibre Infrastructure contracted by Liquid Intelligent Technologies. Passing

Mariswe Half-page Exclusive Enterprise Ad 17 Aug 2021.indd 1

through Gqeberha and East London, the fibre brings new prospects to many communities through KZN, the Eastern Cape, and the Western Cape.

“A project on this scale takes an incredible amount of planning and regulatory approvals,” says Kimmince.

“We started towards the end of 2017, the programme started to get momentum in 2018, and we closed it out at the end of 2020. All the big telco businesses are part of it in some way.”

By modernising this section of the country’s network, Light Fibre Infrastructure Infrastructure is readying South Africa for 5G and the fourth industrial revolution. This new infrastructure also incorporates connections with the east and west coast undersea cable systems, located at Mtunzini (EASSY), Dynefontein (ACE) and Yzerfontein (WACS).

2021/08/17 13:12

www.enterprise-africa.net / 43

INDUSTRY FOCUS: INFRASTRUCTURE

“There are a couple of international landing sites that come into this route and South Africa is a key point with a lot of data centres here, storing data for many of the well-known international corporates. Because of the location and cost structure, South Africa is a favoured destination for global data centre infrastructure and this development is a key enabler,” details Kimmince.

The challenge for this project and for Light Fibre is not the intricacies of the construction work, but the scale of the work across such a large area and the engagement with the many different local communities. This is where the company applied extensive industry knowledge but was happy to learn at the same time.

“At one stage during that project, we were working on four different sections at once, covering over 500km.

The logistics, management, and quality assurance were challenging.

“In the second stage, we were

44 / www.enterprise-africa.net

working on four sections over a 700km distance and we upscaled significantly for that. Based on the size of the projects and the time deadlines, the company, through a structured approach, expands or contracts slightly. We are busy with a number of other projects currently.

“Dealing with local SMMEs and communities is a challenge on its own and we learnt a lot very quickly.

In South Africa, if you’re going in and not engaging with local communities, you build a lot of resistance very quickly. We built a team to negotiate in various forums to pave the way for the future,” explains Kimmince.

This future looks bright for those communities where reliable, consistent internet access will drive opportunities. With corporations like MTN, Vodacom and Telkom driving the rollout and promising billions of Rand over the coming years, closing connectivity gaps is clearly a priority.

“This project brought about the securing of fibre optics all the way down the coast, through communities who in the past had access to cellular network communications but were restricted because of the nature of that model with capacity and speed limitations. This is a very important piece of infrastructure development in terms of the bigger picture for the country because it’s a key enabler, bringing high-speed, high-quality internet services to the larger population. Government institutions, schools, clinics, local business, and the local population can now receive cheaper, more reliable, faster, better capacity internet and wireless solutions.

It is playing a pivotal role in enabling government to roll out all of these strategies,” confirms Kimmince.

MTN is equally proud of the milestone project, with Chief Technology & Information Officer at MTN SA, Giovanni Chiarelli saying: “The

LIGHT FIBRE INFRASTRUCTURE

// WE HAVE BEEN FACED WITH MANY CHALLENGES – GOING RIGHT DOWN THE COAST OF A COUNTRY, WE HAD TO CROSS EVERY RIVER. THERE WERE THOUSANDS OF RIVERS, ESTUARIES, AND STRUCTURES // project gives MTN an opportunity to provide additional and significant capacity between coastal cities and the rest of SA, ensuring the digital world is brought one step closer for many more people. At MTN, we are committed to improving the network experience of our customers. We look forward to welcoming many more users to the cutting-edge digital world now on our doorstep.”

As projects that will enhance the future state of the industry in

South Africa quickly begin to gain momentum, Light Fibre Infrastructure has proven its abilities and shines as the standout partner for long-haul infrastructure construction.

“We have been faced with many challenges – going right down the coast of a country, we had to cross every river. There were thousands of rivers, estuaries, and structures. You would never realise when driving down the route in a car, but the scale of work and the technical requirements imposed

upon us taught us a lot of lessons and we have enhanced our skillset. From an innovation point of view, it’s been a wonderful learning curve.”

COVID REROUTE Even in the lightning digital world of fibre connectivity, where fibre optic cables are used to transfer information instead of traditional copper cables, slowdowns can occur. Like most industries, the progress of fibre rollout was impacted by the onset of the Covid-19 pandemic, and work slowed to a halt as South Africa moved into a severe lockdown.

“Everything was shut down,” remembers Kimmince. “We had a fibre team that didn’t stop working as those routes were critical for the enablement of transfer of data between government departments and businesses.

INNOVATIVE FIBRE SOLUTIONS Superior & cost-effective products, ensuring reliable networks with longevity Averge Technologies was established in 2011 with a diversified product offering, covering the Energy, DC-Power and Fibre sectors. The Averge fibre optic division is one of the leading Fibre product solutions suppliers to the ICT industry. We offer an end-to-end OSP (outside plant) and ISP (inside plant) product solutions.

Averge has developed and supplied various OSP products to various key customers, such as Vodacom, MTN, Telkom, Liquid Telecom, Frogfoot and Vuma. Averge’s key competencies lies in the design and development of products creating and end-to-end fibre solution. With our recently developed and locally manufactured patch panel we have been successful internationally.

We pride ourselves in having relationships with full-turnkey contractors, such as Light Fibre Infrastructure, providing product and support to deliver national projects successfully, as recently supplied to the NLD project.

www.enterprise-africa.net / 45

INDUSTRY FOCUS: INFRASTRUCTURE

// BECAUSE OF THE LOCATION AND COST STRUCTURE, SOUTH AFRICA IS A FAVOURED DESTINATION FOR GLOBAL DATA CENTRE INFRASTRUCTURE AND THIS DEVELOPMENT IS A KEY ENABLER // He says that this period of delay and inactivity hit the company from a productivity and cost perspective, initiating several challenges that had never been seen before. Light Fibre Infrastructure sent all construction staff home to ensure safety. The company then had to apply for the rights to work as an essential provider.

“We also had to develop the protocols for working with social distancing, monitoring and many other things,” says Kimmince. “We had anticipated this as a business and we had previously developed a risk profile

Pat Kimmince.

46 / www.enterprise-africa.net

plan. We split and mitigated risk across the management structure to ensure, from a strategic and support point of view, the business wouldn’t fail if we had virus run through the company. In a structured way, we quickly looked at getting the teams back to work as soon as possible because of the national importance of the project we were working on.

“It was just two weeks from the start of the lockdown for us to get everything in place before getting the teams back on site. There were implications as we had to stick to strict

protocols around social distancing, manage the cost of PPE, organise travel from site camps to construction sites with roadblocks in place, and much more.”

The result of the company’s fastidious planning was the successful navigation of the early months of the crisis, and continued success on site. “For the first five months, we didn’t have any Covid positives within our structures.

We learnt a lot of lessons about how agile and fast we can address challenges without having to close our doors like so many others did,” enthuses Kimmince

LIGHT FIBRE INFRASTRUCTURE

FUTURE PROOFED There is no question that investment will continue to roll in across Africa when it comes to connectivity provision as a growing, young, tech savvy population demands access to the rest of the world. In 2013, the South African government started South Africa Connect, a policy that would see the whole country effectively connected by 2030. While work is still required to meet this ambitious target, the foundations are beginning to take shape. Light Fibre itself has put down more than 5500km of infrastructure, negotiating future work across the border and around southern Africa. A 2018 MyBroadband survey across a large range found that lack of availability was the main reason behind people not taking up fibre subscriptions.

As the sector advances, Light Fibre will grow. “We’re a full in-house turnkey solution company. From conception to survey to design to concept solution, through all technical planning, permission granting and project management on behalf of the client - the operational side, supply chain support, logistical close out, technical fibre design, and optimisation and roll out, through to project close out – we have great expertise,” says Kimmince.

In August, it was announced that Facebook and partners would improve subsea cable connections with a new infrastructure project designed to advance speed and connections around the continent.

New connections will be made into the Indian Ocean Islands, Comoros, the Canary Islands and more, and exciting infrastructure will be implemented in South Africa, Uganda, Nigeria and the Democratic Republic of Congo.

With the major opportunities available in what remains a relatively untapped market, investors continue to realise returns to this booming area.

“We have increased our client

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base and we have attracted new clients across a range of smaller projects,” says Kimmince.

“We have expanded to not just include long-haul infrastructure development but we have become specialists in going through all the towns and cities.

“We have also focussed on building our own network where we have a division responsible for operating that network. We have developed into a company that enables internet service providers (ISP) by building for them directly, as well as our sister company which runs as a registered ISP. We’ve taken that offering into a number of large estates and we have a few thousand clients on board now. We will be expanding that further, particularly into the business side where we will

take internet services to the business fraternity,” he adds.

For Light Fibre, the industry is exciting and holds great potential.

For nine years, this is a business that has proven its worth, adding high-quality capacity where it is most needed. Contributing to national development and projects which uplift South Africa, Light Fibre remains at the start of a long journey in long-haul infrastructure.

“We are very entrepreneurial here,” concludes Kimmince. “We identify opportunities, scale quickly, and provide solutions that meet specific, individual needs.”

WWW.LIGHTFIBRE.CO.ZA

www.enterprise-africa.net / 47

MASTERPARTS Masterparts in Fast Lane

on Growth Plan PRODUCTION: David Napier

Supporting South Africa’s automotive industry for more than 40 years, Masterparts continues to grow its national presence while others have struggled as a result of the pandemic and recent unrest. Providing one of the largest product portfolios and stocking hard-to-find items, Masterparts is the go-to for automotive components.

www.enterprise-africa.net / 49

INDUSTRY FOCUS: AUTOMOTIVE

//

For South Africa’s automotive industry, the Covid-19 pandemic has driven new challenges and seen a race begin for the opportunities that have remained in the market. As showrooms, repair shops, manufacturing facilities and garages were forced to close, and even roadblocks put in place to enforce the rules, car wheels stop rolling.

And, as companies got to grips with the pandemic, parts of the country descended into chaos with riots and looting destroying businesses and creating uncertainty.

It’s hardly a recipe for confidence and growth. The National Association of Automobile Manufacturers of South Africa (naamsa) said in July that export sales declined by 33.1% and a combination of physical damage to assets and property, lost sales orders, and subsequent cancellation of new developments in the country’s auto sector would cost SA more than R3 billion.

For a sector that contributes 6.4% of SA’s GDP, the automotive industry’s importance has never been in doubt.

But, together, the pandemic, looting, pricing, taxes, environmental concerns, and demands of SA’s road network

50 / www.enterprise-africa.net

// WHEN WE OPENED AGAIN, WE OPENED WITH HALF-STAFF SO WE COULD HAVE PEOPLE WORKING ALTERNATE WEEKS, BUT WITHIN 10 DAYS WE WERE BACK TO FULL STAFF BECAUSE THE DEMAND WAS THERE // make for an atmosphere where the average driver has more to consider.

Thankfully, there are some robust businesses in the industry that will continue to lead the industry onwards and upwards. Some of the big international OEMs have committed long-term to the country, and some of the national chain stores have benefitted from this vote of confidence.

Masterparts, a leading supplier of car engine parts and automotive accessories, has kicked into top gear, accelerating with a strong growth strategy which sees it busy opening a new centre in KwaZulu-Natal while managing to avoid the macro challenges that have affected so many others.

“We’ve got three stores in KZN, but thankfully none were affected, even though the chaos was incredibly close

to us. A neighbour to one of our stores supplies power tools and unfortunately they were broken into and had all of their stock stolen,” says Managing Director, Chris O’Carroll, discussing the recent unrest in the country.

For this second-generation family business leader, turmoil in the province could not have come at a worse time.

Masterparts opened its shiny new warehouse, 10 miles north of Durban, in June. “I thought, gosh, we’re trading for a month and they’re going to charge and burn it down.”

The nearby supermarket and strip mall had been cleaned out by looters, and O’Carroll had seen customers businesses decimated, but Masterparts was fortunate.

Continues on page 54

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At Sidem, we produce in-house steering and suspension parts for the car assembly and replacement market. Quality and production are in our DNA. Because we control every step in the process, Sidem delivers only premium quality parts in automotive.

As an expert, Sidem offers steering and suspension parts to those other automotive experts: distributors and car mechanics. Thanks to the focus on advanced technical knowledge and the aim for premium quality Sidem stands for reliable parts from a specialist brand.

This is why OE brands appreciate our approach so much. Brands such as Porsche, Ford and more rely on Sidem for steering and suspension parts.

Sidem is a leading European designer and manufacturer of premium steering and suspension parts for the car assembly and replacement market in the automotive sector. Thanks to the focus on its own production facilities, advanced technical knowledge, yearlong experience and continuous optimisation, Sidem offers the most complete range of steering and suspension parts of the highest European quality.

Making mechanics and their customers happy.

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INDUSTRY FOCUS: AUTOMOTIVE

Continued from page 50 “When people are looting for food you can understand, but when they’re just being destructive it’s devastating to the community. Things are getting back on track, but obviously there’s still some disruption. One of our suppliers had their warehouse burnt down, which has forced us to look for an alternate source, at least in the short term.

These kinds of issues will still be felt for months to come.”

HISTORIC JOURNEY Masterparts has been serving the South African automotive sector for 46 years and currently has a range of more than 50,000 parts for 4000

// WHEN WE GOT TO JUNE AND JULY, THERE WERE QUITE A FEW SHORTAGES IN THE MARKET BECAUSE PEOPLE HAD THAT FINANCIAL STRAIN OF THE LOCK DOWN // vehicle models. With more than 500 staff active across 10 branches and a large distribution centre (DC) in Cape Town, this is a business that knows how to navigate the peaks and troughs of the economy.

“We started in 1975 and were sourcing from local suppliers, agents and warehouses,” says O’Carroll. “As the company has grown we have been able to source directly from international

// OVERALL, SINCE OUR LOCK DOWN, IT’S ACTUALLY BEEN ABOVE THE AVERAGE PRECOVID. IT HAS AFFECTED OTHER PEOPLE IN THE INDUSTRY A LOT WORSE IF THEY WERE LOW ON STOCK OR LOW ON CAPITAL // 54 / www.enterprise-africa.net

suppliers in various markets in order to achieve our aim of having an extensive range with good availability.

“We have one store in Windhoek, six in the Western Cape as well as the DC, and we have three in KZN.” The opening of the new warehouse in KZN was to support the company’s strong growth in the region and optimise the movement of stock around the country.

“We planned to start in February 2020 and then we started hearing the rumblings about Covid. It was questionable whether we would go ahead or wait to find out what impact Covid would have. We decided to go ahead in late February and on March 27th we went into a lockdown,” explains O’Carroll.

MASTERPARTS

“There were a lot of knock-on effects which resulted in the project taking 16 months to complete, instead of the planned 11 months.”

This new warehouse has a retail offering built in onsite and will support the other outlets in the region.

“Engine components can be heavy or bulky. A brake disc can weigh 20kg,

there are a lot of suspension items which are cast iron and bulky and radiators are physically big, So the aim is to try and cut down on stock movement and make the handling process as efficient as possible.

There are also logistical benefits of a new warehouse site. Many Masterparts suppliers send products into the company from international markets and

most come in through the Port of Cape Town. The warehouse at KZN means that suppliers can send containers into the Port of Durban – the largest in subSaharan Africa – for a more streamlined approach into Masterparts outlets.

“We buy from about 20 countries,” Continues on page 58

INDIVIDUALLY STRONG, UNBEATABLE AS A TEAM After several decades of successful representation in South Africa, the bilstein group took a strategic decision to found a local subsidiary in the country in order to be even closer to our customers and to better promote and market our premium German brands, which include febi and Blue Print. This saw the establishment in 2017 of a local team who have a collective experience of many decades in the South African Independent Automotive Aftermarket - Ferdinand Bilstein South Africa (Pty) Ltd was born.

Given that our country, its vehicles, conditions, cultures, languages and people differ to many others around the globe, it was felt both important and necessary to create a local team who could best understand all of the afore mentioned factors and more. Hence, we have a small dedicated, driven and passionate group of employees who are proud to serve the needs of our customers and the market alike. They support our partners – including our longstanding & loyal partner Masterparts – with sales, technical and marketing aspects of our premium brands.

We collectively believe in the quality, range and back-up of our 177-year old German-based parent company and are fully committed to the best interests of all who fit our premium replacement automotive components. The febi and Blue Print brands stand for tried and trusted OE-matching components at an attractive price and where Right First Time is paramount.

www.enterprise-africa.net / 55

Individually Strong, Unbeatable as a Team The Seal of Quality in the Automotive Aftermarket

SOLUTIONS MADE IN GERMANY Best selection, best quality: with a range of more than 32,000 articles, febi offers repair solutions for all common European and Asian passenger cars. Each of our replacement parts meets the requirements for OE matching quality.

Timing Chains • 100% check of all timing chains and system parts • Timing chains from OE manufacturer • Timing chains with TRITAN®-coating

Fluids febi offers fluids for all established European brands and models: • Brake fluid • Antifreeze • Engine oil • Transmission oil

Wheel Bearings • All febi wheel bearing kits are direct OE replacements • Coverage of up to 95% of the required vehicle applications in Europe

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Blue Print is the right choice for quality replacement parts for Asian and European cars and light commercial vehicles. Blue Print provides the aftermarket with Premium quality, as well as technical and information solutions for more than 160 different product types.

Clutches • Extensive range of more than 1,100 kits and 2,100 individual components for over 30,000 Asian and European passenger cars and LCV applications • Competence Centre with laboratory test facility for research & development

Filtration • All-makes range of more than 2,750 filtration components, covering over 90% of all passenger cars and LCVs on Europe’s roads • All products are manufactured to offer the highest degree of installation safety and durability

Braking • All-Makes range of more than 3,400 brake friction components for Asian and European vehicle applications with a coverage of over 98% of all passenger cars and LCVs on European roads • Rigorous and systematic quality checks to ensure the continuous supply of quality products

INDUSTRY FOCUS: AUTOMOTIVE

Continued from page 55 details O’Carroll. “We have suppliers in North and South America, Asia and a number of countries in Europe. That scope enables us to cover the full range of makes and models in our market.”

It reduces the amount of picking and paperwork to be completed in Cape Town and lowers the transit time for goods moving from port to DC. It also reduces time on road between Cape Town and Durban.

“A lot of the focus for us is on how to minimise the manual labour in the

logistics process,” admits O’Carroll.

“It was a reasonable capital investment and resulted in us adding 45 staff. That number should increase as we build on the early foundation but adding a large staff compliment in one go has been challenging for our HR department.” he adds.

COVID CRASH? For those on the hunt for engine, transmission, steering, electronic, suspension, timing, exhaust, filtration, brake, wheel, cooling parts, or part across many other automotive zones,

// NOW THAT WE HAVE THE WAREHOUSE IN DURBAN, WE WILL PROBABLY LOOK IN THAT AREA IN TERMS OF THE NEXT STORE OPENING //

CHRIS O’CARROLL

58 / www.enterprise-africa.net

Masterparts has, for more than four decades, offered one of the largest selections in the country, and has made it easy for customers to walk into a branch and pick up what is required. But with the pandemic, and the lockdown, the nature of the retail operation changed. Today, many argue that a traditional retail model is gone for good. But at Masterparts, following the relevant guidance and ensuring the safety of staff and customers has resulted in a reasonably seamless process with business allowed to continue without the major disruption faced by many.

“The pandemic has changed our attitudes and certain habits. We’re wearing masks and ask our customers to do the same. We have hygiene stations and ensure our staff have risk awareness, but from a business perspective we have managed to weather the storm so far.” explains O’Carroll.

“Initially it was a big change but after 18 months, the various protocols and practises have become way of life now and you just accept it and move forward.”

Initially, the pandemic had a draining impact on Masterparts thanks to the strict lockdown in place in South Africa from the end of March. Trade was lost and employees had to deal with navigating the economy without picking up the virus.

“Unfortunately South Africa doesn’t have a reliable and safe public transport system.

Combined with the country’s general economic factors, this leads to favourable business conditions in our industry no matter what the general climate is at the time. After the lockdown in April 2020 we opened with half of our usual staff compliment but within two weeks we were back to full staff because the demand was there.”

The company introduced a night shift, splitting the team in half to ensure that if the virus did run through the business, there would be at least half a team to continue working.

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INDUSTRY FOCUS: AUTOMOTIVE

“Previously we were an 08:00 to 5:30 company but Covid forced us to re-think various strategies. One was to split the warehouse staff and run a night shift in order to mitigate risk.

If somebody on one shift contracted Covid it would mean fewer staff having to go into isolation.”

But, even with protocols and contingency in place, with an employee base of more than 500 spread across a large geography, in hot spot areas some disruption was inevitable.

“We’ve had to shut down all of our stores multiple times to fumigate after a staff member has tested positive. It’s a huge disruption but one of many issues Covid has brought with it, that businesses have had to accept.” says O’Carroll.

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However, the demand from customers has been high, especially as many are looking to fix up and repair cars rather than investing in new vehicles during times of uncertainty.

“When economic times are difficult, the average age of vehicles rises as people undertake ongoing maintenance to extend the life of their vehicle and they turn to the aftermarket because of pricing.

“When times are good, vehicle sales increase and the vehicle park grows.

Vehicles are sold to new road users, so our potential market increases. So, we are fortunate to have fairly steady business whether the economy is on an upward or downward trend.

“There is less traffic on the roads due to many businesses allowing staff

to work from home and less holiday travel due to various restrictions,” O’Carroll says.

By sticking by its core principle of stocking a vast number of products, Masterparts has become a go-to for those in the industry. Asked about the company’s success, O’Carroll talks of the key factors. “We want to be synonymous with range and availability. When you lose an entire month of trading, it affects cash flow and creates challenges. After overcoming those we found other knock-on effects of Covid such as steel shortages and also a shortage of shipping containers, which has led to higher prices on both products and freight. It’s become a minefield of issues to navigate.”

MASTERPARTS

PEDAL TO METAL In the future, as the country emerges from the grip of the pandemic, and as the automotive industry regains confidence as freedoms are universally restored, more people will take to the roads, more cars will be purchased, more cars will be repaired, and people will begin venturing into stores in real numbers again. Masterparts is not waiting to be prepared, it is already on the move.

“Thankfully we are growing,” smiles O’Carroll. “We have added stores in order to reduce pressure on existing stores, so that we can maintain high levels of service.

In 2019, local government announced that the auto sector in KZN was thriving with a number of major international brands present in the province and a number of assembly operations helping to create opportunities. With the new Masterparts warehouse, stock could not be easier to come by for these clients and potential clients.

“Now that we have the warehouse in Durban, we can service that region more efficiently.

The pandemic and riots have subdued the appetite for risk slightly but we’re still on the lookout for new opportunities,” says O’Carroll.

Currently, the automotive components industry in KZN employs around 17,000 people and there are around 40 members of the Durban Automotive Cluster which is funded by the municipality.

There is no question that Masterparts has engrained itself into the DNA of South African automotive sector and is now a key part in this engine that drives so much economic activity. By applying long-standing, sound business principles and being well-prepared to deal with uphill challenges, this is a company that will continue to find opportunities, wherever they may be.

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“By mid-2020 we started to see shortages in the market caused by the financial strain of the lockdown.

We were able to capitalise because of our availability and even though we lost April as a trading month, we finished the year about 4% up. Given the sudden and unprecedented challenges, it was good to be able to provide stability for our staff when so many businesses were having to manage redundancies,” says O’Carroll.

“It’s a huge responsibility to have hundreds of staff and their families dependant on our business for their livelihood and then be faced with the challenges of the last 18 months. But we’ve managed to maintain that momentum and I feel it will stand us in good stead going forward,” he concludes.

The Masterparts mission is to continue providing the widest possible selection of car parts – including hard-to-find items – and to maintain technical ability and a depth of knowledge greater than competitors can offer. For decades, this mission has been achieved, and the result is a business that is now stronger and more resilient than others – even in the post-pandemic climate. Masterparts is sitting in pole position with opportunities in front of it. O’Carroll is confident the company can power onwards, achieving more growth and more success.

WWW.MASTERPARTS.COM

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ALSTOM UBUNYE

Driving the Future of

Sustainable Southern African Rail PRODUCTION: Timothy

Reeder

Alstom’s contribution to the local South African rail industry dates back nearly a century to 1925 and the building of the first electric locomotive. Alstom continues to strengthen its commitment to South Africa through numerous transformative joint ventures and significant investments, details Managing Director Southern Africa Bernard Peille, as thoughts now turn away from pandemic disruption toward sustainable mobility and continued innovation.

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©Alstom - Electric Locomotives Assembling Plant

INDUSTRY FOCUS: TRANSPORTATION

//

“Leading societies to a low carbon future, Alstom develops and markets mobility solutions that provide the sustainable foundations for the future of transportation,” opens the worldwide rail transport giant, whose product portfolio ranges from high-speed trains, metros, monorail and trams to integrated systems, infrastructure and digital mobility solutions.

150,000 Alstom vehicles are in commercial service worldwide, while in excess of 70,000 employees occupy more than 250 strategic locations in 70 countries. According to Alstom Chairman and CEO Henri PoupartLafarge: “The role of Alstom is not only to provide rolling stock, services and maintenance but to offer mobility solutions to a world in profound transformation.

“Alstom is in excellent position to shape tomorrow’s mobility: efficient, sustainable and connected.”

KEY SA PARTNER In Southern Africa, Alstom is engaged as a long-term key partner in the continued revitalisation of the rail industry, providing transport solutions tailored to local needs and making notable contributions to the local economy.

In 2016 Alstom completed the acquisition of South African rail company Commuter Transport & Locomotive Engineering (CTLE). Based in the region of Ekurhuleni in Nigel,

// WE ARE BUILDING TRAINS IN SOUTH AFRICA, FOR SOUTH AFRICANS, WITH SOUTH AFRICANS, CREATING JOBS AND INVESTING IN LOCAL COMMUNITIES // 64 / www.enterprise-africa.net

the resultant Alstom Ubunye boasts an 80,000m2 manufacturing facility and has nearly 600 employees, 25% of which are women and more than 50% hailing from the local area.

“Through the acquisition and the formation of Alstom Ubunye,” the company declares, “Alstom strengthened its position as a South African key player with local partners, creating a stronger industrial and commercial base with the purpose to offer a complete portfolio including infrastructure, signalling, trains and components, as well as services to better address Southern Africa’s railway transport needs.”

Alstom Ubunye is one of four major joint ventures in which Alstom is the majority shareholder, with the group as a whole having grown significantly in recent months via another in the form of Bombardier Transportation’s rail business, Bernard Peille explains.

“It has really bolstered our presence in South Africa,” he says, “as we have gone from having 1,500 to nearly 1,900 people in the country.” A transformational step for Alstom, this marks the creation of a global mobility leader committed to responding to the increasing need of greener transportation worldwide.

“We are active in the whole South African railway industry and portfolio,” Peille clarifies. “We also have the

// THROUGH THE ACQUISITION AND THE FORMATION OF ALSTOM UBUNYE, ALSTOM STRENGTHENED ITS POSITION AS A SOUTH AFRICAN KEY PLAYER WITH LOCAL PARTNERS // significant partnership with Transnet Engineering, too, which forms our Bombela JV, and to date 70 locomotives have been delivered from this contract with the rest to follow by 2024.”

“By bringing its skills and infrastructure to South Africa, Alstom through its JVs is shaping the future of the country’s railway transport and is positioning itself as the country’s long-term partner,” Alstom says. “We are committed to contributing to South Africa’s infrastructural development by building the foundations of tomorrow’s railway transport.

“We are building trains in South Africa, for South Africans, with South Africans, creating jobs and investing in local communities. This South Africa

INDUSTRY FOCUS: TRANSPORTATION

industrial base will enable Alstom to better address mobility needs in Southern Africa and beyond. South Africa could thus become a real railway leader for the whole African continent.”

GIBELA JOINT VENTURE Peille goes on to describe the fourth in this stunning series of partnerships. “We also have the longstanding contract with the Passenger Rail Agency of South Africa (PRASA), Gibela,” he describes.

“This JV comprises 70% ownership by Alstom and 30% our partner Ubumbano, and sees us tasked with delivering 600 electric multiple unit (EMU) trains between 2018 and 2030.

“Again, we have delivered the first 70 or so of these, each one consisting of a six-car configuration. We are now operating at a rate of around 44 trains per year, and in two years this will increase to 62. This long-term manufacturing and supply contract is in place until 2030, and running alongside it is a service agreement, which will stand for 19 years.

“For this contract we have built a brand-new plant, in Dunnottar, currently

// WE ARE ACTIVE IN THE WHOLE SOUTH AFRICAN RAILWAY INDUSTRY AND PORTFOLIO // staffed by nearly 1000 people” Peille adds. “We remain an actively hiring company, and this number will grow to somewhere in the region of 1500 within the next couple of years - purely for the Gibela venture.” The JV in 2018 sparked the largest and most advanced centre for train manufacturing in Africa, and the first of its kind on the continent.

“We have invested close to a billion rand in the Gibela facilities,” Peille tells us, “one of which is dedicated to building the trains themselves, and the other to making some of their components.”

The 53,000m2 site in Dunnottar took 22 months and 2.5 million hours to complete, and hosts manufacturing workshops designed in a modular format to enable lean manufacturing processes.

The world-class manufacturing facility and its equipment feature the latest innovations, facilitating the advanced manufacturing processes necessary for the assembly of at least

10,000 parts and the linkage of 250 industrial activities.

“We are all immensely proud of what we’ve achieved and are committed to delivering trains to the Passenger Rail Agency of South Africa,” reinforced Didier Pfleger, Alstom Senior Vice President for Middle East and Africa.

“These are trains that will, first and foremost, improve the lives of South Africans. This factory is a major boost to the rail industry in the country, as South Africa will now be able to produce state-of-the-art trains locally and will become the Alstom centre of excellence for railway in Africa.”

SUSTAINABLE MOBILITY When something like a lockdown comes along and causes the mobility of entire countries to grind to a complete halt, transport companies are naturally going to be among those taking the brunt of the impact, Peille

©Alstom

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ALSTOM UBUNYE

©Alstom

relates. “For Alstom Group it has of course been a difficult period, as for our customers who have experienced a significant drop in traffic and in passenger transportation.

“Nevertheless,” he qualifies, “we continue to follow our strategy and pursue our growth targets, and our primary concern remains to satisfy our customers through our delivery and service. Continuing to be considered a preferred partner by them is a big part of our long-term plans.

“We have ambitions to extend our footprint beyond South Africa,” Peille

// ALSTOM IS IN EXCELLENT POSITION TO SHAPE TOMORROW’S MOBILITY: EFFICIENT, SUSTAINABLE AND CONNECTED //

says of a future rife with positivity.

“Very large cities like Nairobi, Rwanda and Kinshasa are all very alluring prospects. We have the solutions as Alstom Group to export from South Africa, and in the medium term this is very much our aim - whether suburban trains, metro or urban solutions.”

This prosperous future that Peille depicts will be informed by every ounce of the experience accrued over his 32 years with the Alstom Group. “I have been posted to the US, France, China, Russia and now South Africa,” he informs us, “which has given access to multitude cultures, customers and challenges within the group.”

The landscape has changed markedly during his tenure, Peille says, but Alstom is perfectly situated to adapt to the prevailing order. “When I joined the primary investments in transport infrastructure development by many countries concerned high speed. This has drastically altered, and the focus now lies in green technologies.

“We have developed hydrogen trains in just the last couple of years,

which are so much cleaner and more sustainable, and increasingly requested by both customers and passengers. It is an evolution that we will continue to buy into over the coming decades.

“Today it is much less about speed, where have reached the limits of what is possible in most areas, and more to do with making commuter and passenger lives much more enjoyable through the services we can provide on board, how we can help people stay connected to the outside world and ensure that every train journey is taken in a green and sustainable manner,” is Peille’s closing message.

“We want more satisfied customers, more growth and more innovation. We want to be the leader in South Africa’s railways and we will never stop working to achieve it.”

WWW.ALSTOM.COM

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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.

//

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 near-

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insurmountable. 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 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 72

© Standard Bank

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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 68 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.”

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“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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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 / 75

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 // 76 / 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.

www.lynshpincedar.co.za

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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, there was still a lot of work to be done to bring the idea of forging a career to

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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 potential and attaining the previously unattainable. “I was very fortunate to be a founder of AWCA alongside three of my colleagues Zodwa Manase, Sindi

AWCA INVESTMENT HOLDINGS

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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20 Questions

20 Questions

with Brandon Garbutt Managing Director, Capital Legacy

Brandon Garbutt

Capital Legacy is a business that strives to make the loss of a loved one easier. It’s also a business that has completely turned the insurance industry on its head and a business that has experienced unprecedented growth. Meet the Managing Director, Brandon Garbutt.

1. Brandon, news on the ground is that you guys at Capital Legacy are shaking up a very “traditional” insurance industry. What do you say to that?

I say that it needed to be shaken! Insurance in South Africa has been done the same way for the past 40 years, but the world has changed. We’re simply looking to find new ways of doing financial planning that will truly make a difference in people’s lives. If that is shaking up the industry, then yes, it’s true.

2. You and Capital Legacy CEO, Alex Simeonides, are said to be ‘partnership gold’. What do you say to that?

Alex and I are a great fit. We have different personalities, and our strengths complement each other. He has a brilliant mind and he dreams big. My Skills compliment this by being able to implement these ideas operationally through the day to day running of the business. I really enjoy that about my job.

3. What else do you enjoy about your job?

The people. I enjoy interacting with our Capital Legacy teams, on all levels. I am passionate about what we do, and

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I love that the people I work with are passionate too. There is an energy at Capital Legacy that really can’t be beaten.

4. What do you love least about your job?

Mundane, routine and reactive tasks that need to be “ticked off” on a list.

5. Has Capital Legacy made a difference in people’s lives?

Oh, absolutely, and it’s something we’re very proud of. We offer a solution in an area that was largely overlooked by the industry before. We believe a Will is one of the most important documents you will sign in your life, and that all good financial planning starts with a signed Will.

6. Speaking of good starts, your father was an insurance ‘legend’ and some say you were born with a silver spoon in your mouth. Were you?

I believe perception is reality, so I’m glad I have the opportunity to address this “perception” upfront. There were perks in terms of networks, but being the son of an industry “legend” comes with its own challenges.

20 Questions

You have to work harder than anyone else to prove yourself because expectations are high. Wins are usually attributed to your lineage, while failures are attributed to your shortcomings. So sure, some may say I had a silver spoon, but the truth is that I worked very hard to get to where I am today.

7. What three traits do you attribute to your success?

Determination: I always have my eye on the goal. Drive: I constantly move in the direction of that goal. Luck: I need it to manage “potholes” along the way.

8. You’ve been called a mentor and a driver by your colleagues. What type of leader are you?

I’m a tough but fair leader. Transparency is important to me because when everyone is on the same page, success is inevitable. I also trust the people close to me to do what they do well and to have the company’s best interests at heart.

9. Have you ever been poorly managed?

Absolutely! I once had a boss who was a belligerent dictator. He managed with fear and belittlement. When you were called to his office, it was like walking the plank. I’m glad that person showed me how NOT to lead people. Bullying is not my style.

10. Who has inspired you?

The “nicest CEO in the world”, aka Disney’s Bob Iger.

I remember watching a two-hour interview with him and Oprah Winfrey. Oprah said that although Bob had hundreds of things going on, not once did he look at his cell phone during the interview. Bob responded that he was engaging with Oprah and her time was as valuable as his. Closer to home, I was inspired by Theuns Botha.

He taught me accountability and how to solve problems.

And then, I must mention my mom, who taught me about hard work and perse-verance.

11. Pet peeve?

Being made to look like a fool, and lazy people.

12. What’s your greatest passion?

Football, Liverpool and Steven Gerard. Unfortunately, my wife wouldn’t let me call our daughter Stevie G! And, of course, my family plays a big part in my life.

13. One regret?

Not being focused on my career earlier in my life.

14. How can you rectify that now?

I rectify it every day by being completely focused and driven and taking the lessons I learned in my 20s and using them to succeed now in my 40s.

15. What book has inspired you the most?

I enjoy biographies. At age 16, I read Losing My Virginity

by Richard Branson, and I was hooked. More recently, I enjoyed Bob Iger’s biography, The Ride of a Lifetime.

However, I don’t only draw inspiration from books; I really enjoy motivational video clips where people talk about what they have done in the background, that nobody is aware of, and which led to their success. These videos are “pick me ups” to start my day on the front foot.

Brandon Garbutt

16. Which film affected you most?

Rudy, without a doubt. The movie is about a young guy who has big dreams of playing American football at Notre Dame University, despite significant obstacles.

The message is to believe in yourself and that if you work hard, you will overcome adversity.

17. What quote do you live by?

As mentioned before, and as anyone who knows me will know, ‘perception is reality’, is the quote I live by.

18. What is your favourite place in the world?

Locally, I feel at home in Franschhoek. The good wine definitely helps! I’ve also been for-tunate to travel overseas and experience amazing places. Switzerland is right up there for me.

19. Current brag project?

My roots lie in education, and I saw a massive opportunity in our industry to kick-start the careers of young advisors and even existing advisors who want to better themselves. So, we created the Legacy Lessons Institute - a place of learning and shared information. I’m very excited about the upcoming launch of this project.

20. Your business is all about legacy. What legacy would you like to leave?

I want my legacy to be about how I contributed to change in the industry and how I helped others in the same positive way that I talk about those who inspired my career.

For more information about Capital Legacy, visit www.capitallegacy.co.za To connect with Brandon, click here for his LinkedIn profile: linkedin.com/in/brandon-garbutt-890a6252

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IEMAS INSURANCE BROKERS Belongings & Business, Family & Future:

All Secured With Care PRODUCTION: Timothy Reeder

For Iemas Insurance Brokers, care informs every move the business makes. It sets out to walk every step of life, and beyond, with each of its valued members, offering comprehensive solutions to safeguard life’s most critical elements and helping customers along the path to financial freedom and wellness. Iemas Insurance Brokers was an early adopter innovative, future-proof solutions, establishing a digitally-enabled future made infinitely more relevant and urgent in the wake of the Covid-19 pandemic.

//

“We are your 360-degree insurance solution,” sets out Iemas Insurance Brokers, a wholly-owned subsidiary of Iemas Financial Services (Iemas) established to focus exclusively on the specialist provision of insurance solutions.

“In April 2017 we became fully operational,” MD Piet Wolmarans informed us when we spoke in April 2020, explaining his role in guiding

the project through the litany of regulatory approvals and operational aspects required to be in place.

“We had to register the company as a wholly-owned subsidiary of Iemas, transfer all contracts from service providers, move over employees and get all operational capabilities in place according to full compliance regulations required by the Financial Service Conduct Authority.”

With this accomplished Iemas Insurance Brokers quickly went on to become an FCSA-registered member and holder of its own FSP license. Purchasing insurance can be an overwhelming endeavour, and Iemas Insurance Brokers has gone on to build a commanding reputation around offering comprehensive solutions to secure clients’ future, family, belongings and business.

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INDUSTRY FOCUS: FINANCE

CO-OPERATIVE STRENGTH Iemas is a true household name in South Africa and far and away its largest financial co-operative.

Originally formed as the Iscor Employees Mutual Aid Society (I.E.M.A.S.) within Iscor (now Mittal Steel), the success and growing renown of the business allowed the addition of a wealth of finance products to a burgeoning portfolio, officially registering in March 1996 as a trade co-operative.

Operating as a co-operative has allowed Iemas over a 10-year period to allocate over R1 billion to its members, in the form of rebates on interest and premiums and allocations to their individual member funds. In 2017, for example, the member benefit allocation was R109 million.

“This is a significant contribution to our members of which we are extremely proud,” effused Johan Nel, Iemas CEO, “and testament to Iemas’s unique and resilient business model.”

“We celebrated our 80th anniversary in 2017, and thus remain sustainable – even in the current challenging and uncertain economic times,” Iemas says of a rich history and a comprehensive range of competitive financial products and services on offer to over 160,000 members across South Africa.

The future looks ever-brighter, with more than 10,000 retailers on board including Woolworths, Pick n Pay and Shoprite/Checkers, a staff complement of almost 600 and a large base of loyal members.

// THE SHIFT TO DIGITAL CHANNELS IN AFRICA IS WELL UNDERWAY, AND THE COVID-19 PANDEMIC HAS ACCELERATED THIS TREND // 84 / www.enterprise-africa.net

// AS YOUR CARING PARTNER IN INSURANCE, IEMAS INSURANCE BROKERS ALWAYS STRIVES TO GIVE OUR CLIENTS THE BEST VALUE TOGETHER WITH PROFESSIONAL SERVICE // FINANCIAL WELLNESS Although only a relatively young standalone entity, Iemas Insurance Brokers benefits from the full weight of the Iemas’s more than eight decades of experience in the financial services sector. “We are proud to be associated with the largest financial co-operative in South Africa,” the company asserts of this valuable alliance, “and share the same ethos and member-centric focus as Iemas.

“Our business is founded on the well-established co-operative principles of democracy, equality and social responsibility,” states Iemas, “underpinned by the commitment to live our brand promise of being a caring partner.” It is an ethos which bleeds right through Iemas Insurance Brokers’ own philosophy. “As your caring partner in insurance,” the company outlines, “Iemas Insurance Brokers always strives to give our clients the best value together with professional service.

“We walk with you, through your life journey and beyond,” the company stresses, and as such product solutions are based on four key pillars. Securing your future comes through tailored savings and investment plans and retirement annuities, while your family is safeguarded with funeral, disability and life cover as well as education savings plans and Wills and Estate planning.

Belongings are taken care of through comprehensive car, home, buildings and personal belongings insurance, while lastly business is secured with various options to allow you to solely focus on growth and progression.

Underpinning its philosophy of protecting your most cherished assets Iemas Insurance Brokers continual promotion of financial wellness

and freedom, a key differentiators and of higher importance than ever during these most uncertain of times. It is wrong to think that this translates to being wealthy, Iemas Head of Corporate Marketing, Communications and New Business Development Nomtha Lusu told Tech Financials: “Financial wellness is about planning and adapting your finances to your current or future situation,” she clarified.

“It is so important to achieve financial wellness,” furthered Piet Wolmarans, “because if you are in control of your finances and know how to manage your money then you will be able to adapt financially when the unexpected happens.

“Living financially well is very similar to living physically well.”

In the spirit of co-operation and giving back, Iemas Insurance Brokers empowers stakeholders to approach financial wellness through the provision of tools, resources and personal advice on their journey towards financial freedom.

“As such,” Lusu rounds off, “we offer financial wellness training at no cost to our partner employers across South Africa, providing financial discipline, tricks and lessons learned, and tools to assist people with managing their finances responsibly no matter what life brings.”

DIGITAL DAWN The annus horribilis that was 2020, whose reverberations continue to be keenly felt, at least brought hurtling home the critical need of extensive cover, allowing the industry to again show its resilience while positively impacting the lives of its customers at a time of great financial need.

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IEMAS INSURANCE BROKERS

McKinsey and Company has recently labelled Africa as “one of the world’s hot regions for insurance,” second only to Latin America for rate of insurance growth globally and with the potential for prodigious development. South Africa, the largest and most established insurance market, holds 70% of premiums on the continent.

The past year was also, perhaps less obviously, a year in which the industry made meaningful strides in changing its operating model.

It expedited the introduction of the digital capabilities that have long been positioned as crucial to unlocking this vast potential, and which will transform the industry for many years to come.

“The shift to digital channels in Africa is well underway,” Confirmed the McKinsey report, “and the Covid-19 pandemic has accelerated this trend. Lockdowns and working from home have accelerated digital adoption and shifted expectations in the next normal, and interactions that are not digital or digitally enabled will no longer gain traction.”

Iemas Insurance Brokers was immune to the mad scramble which followed this digital dawn, with Wolmarans detailing to us last year how well-armed the company had made itself to adopt this trend.

“We have created an array of digital functionalities on our platform,” he described, “and as part of our longterm insurance solutions we have developed a digital self-serve portal for financial planning.”

Iemas Insurance Brokers 2019 partnership with Simply, the South Africa-based company selling life,

// LIVING FINANCIALLY WELL IS VERY SIMILAR TO LIVING PHYSICALLY WELL //

disability and funeral cover online, transpired to be an astute move, as the Insurtech startup registered a fivefold explosion in sales on their No-Touch Broker Platform as lockdown took hold.

Wolmarans underlined how these crucial digital systems have come into their own while chaos has abounded. “By digitising our products and ensuring they co-exist with our face-to-face service, we’ve been able to reach more people and offer them proper financial service and risk protection in a convenient way.

“This has been invaluable during lockdown, when digital sales have soared as a proportion of our overall business.” More than a mere temporary swell in demand for digital insurance solutions, experts predict that, post-Covid, this will

be one significant way in which the world will change permanently, and Iemas Insurance Brokers is superbly positioned to capitalise.

“We’re going to see businesses that are well-suited to the new normal do better than ever,” Anthony Miller, Simply CEO, concluded. “The world is going to be less face-to-face and more remote and online. In our industry, if you’re digital, if you can adapt quickly, if you can target accurately, the future looks good. The time for digital life insurance has arrived.”

WWW.IEMASFINANCIALSERVICES.CO.ZA

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PAY@

Future Proofing Payments

by Embracing Digital PRODUCTION: Manelesi

Dumasi

Pay@ is positioned for solid growth in the coming years as the company builds out its digital payments strategy on the back of its strong retailer and cash collection platforms, while all the time delivering service quality of the highest order to bill issuers around Africa. “We are super excited about the next three years,” CEO Andrew Hardie tells Enterprise Africa.

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INDUSTRY FOCUS: FINANCE

//

Africa is largely viewed as the continent which has made the most progress with money movement. For not be too much longer will cash be able to justify its claim as undisputed King across all territories. Today, digital players and fintechs are busy trying to dethrone cash payment incumbents.

And the amount of money on the move every single day is eyewatering on the continent that has promised to bypass others through technological advancement, desperate to leave behind its tag of underdeveloped or economically insecure.

Mobile money is amongst the royalty of Africa’s fintech boom. In 2020, the GSM Association reported that 43% of all new mobile money accounts started in 2020 were in sub-Saharan Africa. Registered accounts reached 548 million in 2020 (a 12% y-o-y increase)

Andrew Hardie

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with 159 million active monthly users (up 18%). The region saw an astronomical 27.4 billion transactions, worth an immense $490 billion.

Interestingly, the report found that not only are users active with their accounts more often, they are increasingly looking for more services.

The Covid-19 pandemic has obviously moved many previous cash-only users online, and this has been welcomed by mobile money players as well as bill issuers who are on the hunt for improved ways to collect remittance from customers.

Whether it’s retailers, financial services, online or digital TV subscriptions, medical providers, educational facilities, government institutions or more, cash is now rivalled by fast, efficient, effective and affordable digital payment solutions.

Leader in the payments industry is

Pay@. Headquartered in Stellenbosch with clients countrywide, Pay@ has been assisting with bill collection, whether cash or digital, since 2007. Settling up through Pay@ has never been easier for end users, and this has made life better for the companies issuing the bills.

ALWAYS EXPANDING Growing into Africa is the next step for this exciting business, as the pandemic has moved more people online and as big-name South African clients continue their push north of the border.

“We are integrated to, from a Southern Africa perspective, the largest independent network of collection points,” Pay@ CEO Andrew Hardie tells Enterprise Africa. “The history of that is around financial inclusion. Not everybody is banked, and even for many people who have a bank account, they go and draw out all the cash, they keep it under their mattress to use as their tender and currency.

“To serve this market in other parts of Africa, mobile money has really taken off, but mobile money in South Africa is not quite there yet. We do have a mobile money product, but our core service and collection points are retailers - large tier one retailers in South Africa – and we have pretty much all of them. We have 9000 retailer points; you can go to any tiny little town in the middle of nowhere and there will be a Shoprite, Pick n Pay, Pep store or a Spar store and you can go and pay a Pay@ bill in those stores. We also collect retailer payments via kiosks and many thousands of mobile point-of-sale agents.”

This model has allowed clients including some of the biggest businesses around – Multichoice, DStv, Eskom, Standard Bank, Assupol, SABC, SAA, HomeChoice, Mukuru, and many more – to issue, validate, collect and confirm bill payments from any customer, in any form, anywhere in South Africa. In fact, “MultiChoice is one of the largest billers in Africa and we have served them over the last 10 years to great effect. MultiChoice use pretty

PAY@

much every single one of our services and we have a team that focusses on delivering behind their requirements,” Hardie highlights.

But Pay@ recognised early in its journey the potential of digitisation and the importance of the ability to manage different payment methods. Easy online payments, cards, EFTs, mobile money and wallets are all accepted seamlessly.

DIGITISATION JOURNEY “Over the last six years, we have been building out a digital strategy. That has two sides. One is online digital payment methods, such as the conventional online card mechanism. And the other is digital bill presentment, such as an interoperable QR code,” details Hardie.

“One of the deployments we have made that combines a digital payment method with digital bill presentment is our QR code solution. A QR code payment method is fast, contactless, card-not present and secure. It provides a great, seamless payment experience.”

We helped Mastercard build Masterpass out in South Africa, which was really great. Masterpass can read our QR codes wherever they deploy their functionality, so whether it’s VodaPay, all of the banks, or any other mechanism, they all now read our QR code.

“We put a QR code on a bill payment statement that can be read by all the mobile apps. We also have the independent apps like Snapscan and Zapper that can read the code and collect on our behalf. It’s actually not about the technology; it’s education, trust and security around digital. As that increases, we see tremendous growth there.

“To find the payer - the consumer of the bill issuer, you have to access them in a form that resonates with that consumer. What I mean by that is you might have a highly banked, tech savvy, smartphone user who doesn’t want to get a USSD message, so you access them via Whatsapp, app, web, etc. Whereas where people use feature phones, there’s no data and the likes, you rather use USSD or your telco partners. That’s

// THERE IS A DICHOTOMY OF A HIGHLY SOPHISTICATED PAYING MARKETS COMBINED WITH THE GRASSROOTS SIDE AND A LOT OF THE TIME YOU HAVE COMPANIES THAT SERVICE ONE OR THE OTHER BUT NOT ALL. THAT IS WHERE OUR AGGREGATOR MODEL COMES INTO PLAY // another side that we’ve set up. We have a broad base of either proprietary or third-party presentment services. SMS, USSD, WhatsApp, in-app, web, QR, email pay now buttons, and we’ve also created a platform where both networks as well as bill issuers can do direct billing on their own websites. They use the product we have called DigiAPI.” As cash and card payments at retailers are still strong, Pay@’s solution that links digital presentment to physical payments in-store is also seeing great traction. Thanks to this all-encompassing digital approach, built on the foundations of the payment acceptance through retail networks, Pay@ has been called in to assist its clients further afield.

“The company is diversifying,” confirms Hardie. “Our core market is South Africa; geographically we’re also in Botswana, Namibia, Lesotho, and we service transactions in Zimbabwe.

We’re heading next into Zambia and Mozambique, and possibly Angola on our retailer strategy, but we’re looking from a digital point of view at how we can do things slightly differently into other parts of Africa where retail may not be as strong. We are also diversifying into different services.”

While expansion into Africa is often at the heart of every expansion strategy for those succeeding in South Africa, Pay@ has ambitions beyond the continent.

“Regionally, we are expanding much further into Africa and also broadening the lens in terms of services

that we provide there. We have already started looking at international expansion. We went to the USA last year and we’re working with some of the major payment value chain brands that are partners of ours to access other markets. That could be Latin America, Asia or Eastern Europe on the emerging side or it could be the US on the highend side. Due to the breadth and depth of our solutions we can straddle both.”

The management team are quick to innovate and search for new opportunities in existing and new markets. Stagnation is not acceptable at Pay@. That is why Hardie and colleagues are rolling out new offerings to add to the strong portfolio. The core of the business is that of being a payments and bill aggregator whereby through integrated retailers, banks, telcos, mobile wallets and other payment services providers collections are made for organisations of all sizes across multiple industries. But the business is expanding into software-as-a-service, presentment-as-a-service, e-commerce, new industries, SME services, rapid payments, and industry solutions, such as banking, telcos and insurance.

“We’re going into new industry sectors like gaming and internet, online businesses etc. We also have an electronic bill presentment & payment (EBPP) platform for SMEs – doctors, plumbers, electricians etc, and this platform enables a whole different servicing side of our business.

Continues on page 94

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PARTNERSHIP ENSURES EXPANSION OF ASSUPOL DIGITAL STRATEGY In a changing world where traditionally strong cash cultures are being disrupted from all angles, digital players are making the most of an appetite for fast, easy and contactless payment solutions.

Africa is now recognised as the continental fintech hub at the forefront of this revolution, and strong businesses are emerging as industry leaders.

Assupol – one of the leading providers of funeral, life, savings and retirement products – is on a digital journey as it answers the needs of consumers by providing a hassle-free online process to ensure access to their portfolio when people need it most.

“Due to the effects of the Covid-19 pandemic, clients are more focussed on keeping their life insurance affairs in order” says Jacques Erasmus, Senior Executive Manager: Individual Life Administration at Assupol. Following a resurgence in demand as the Covid-19 pandemic swept through communities, Assupol needed to accept premiums through different channels, especially during lockdown. The necessity to accept payment in different forms allowed Pay@ to support this activity for Assupol.

“Pay@ provides Assupol with payment mechanisms that allow our clients to pay their insurance premiums in a way that is most convenient to them. It is particularly useful for clients that don’t have accounts with the commercial banks or are not comfortable with debit orders” says Erasmus.

Being able to use the method of receiving cash at the vast network of retailer partners’ till points makes it possible for Assupol to provide access to our products to even unbanked clients, or clients that do not receive regular salary or wage payments. Pay@ also provides online card payments, instant EFTs and other options.

“Pay@ has assisted us in providing access to financial services to those clients that have traditionally been excluded from the insurance industry. The Pay@ service also makes it possible for us to provide great flexibility to our clients and achieve our ambitions of being the most client-centric insurer in our target market,” he adds.

Assupol is now in a position to offer funeral insurance to every person in South Africa, but instead of the traditional model where brokers sit with potential clients and both sign paperwork, a new webbased offering is improving service quality.

“We are currently enhancing our client self-service portal to make it possible for clients using other payment methods such as debit order or salary stop order to catch up with any premiums they may have missed by using one of the options provided by Pay@,” says Erasmus.

In partnership since 2017, Assupol and Pay@ have complemented each other’s growth and will work closely together going forward as more consumers go digital.

“There is nobody left who is not on a digital drive,” explains Erasmus. “Covid-19 was the catalyst behind this as people became scared to travel and gather. We are and have always been a clientcentric business and so we are moving to assist our customers.”

By integrating with one single partner, Assupol avoids the need to move around South Africa, building partnerships with each retailer, bank, telco or payment acceptance point. One partner, one cost, zero stress.

“We don’t try and reinvent the wheel. By using the services of experts in their respective fields like Pay@, Assupol can focus on its core values and provide our clients with superior solutions” Erasmus concludes.

0861 235 664 | info@assupol.co.za | www.assupol.co.za

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INDUSTRY FOCUS: FINANCE

Continued from page 91 “Where the value is that via a single integration into Pay@, billers get access to all of those payment networks and don’t have to have multiple individual integrations to these networks, and similarly the networks don’t want to have integrations to hundreds of companies - we aggregate all of that for them,” Hardie adds. “Essentially, we take care of the whole transaction.

We present the bill, we manage the real-time validation of the transactions, and any business rules linked to the transactions. Once the payment takes place, there’s confirmation, and that takes care of the actual transaction.

We then manage the flow of funds by collecting all monies paid across all networks and we then aggregate that into a single bulk settlement to each bill issuer. We provide reports and a reconciliation file to the bill issuer that they can upload to their back-office system ERP. The process is seamless and automated, manual bank reconciliations are a thing of the past!”

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Pay@ processes millions of transactions each month, with a 99.995 success rate. This efficacy rate plus the safety and ease of use of the system enhances the customer experience and reduce process and overhead costs of stakeholders. There are a many bigname user caser studies.

“Software as a service within the payments industry is a real opportunity because of the inefficiencies in the value chain. We are deploying a few of these services, such as real time notifications for banks, presentment-as-a-service, reconciliations-as-a-service and others.

Interestingly, companies are struggling with POPIA and we are quite advanced

in our progress on that side so we could maybe offer that as a service as well.

There’s lots of scope.”

COVID CRISIS? Pay@ has been a South African success story since its establishment, and even during the tough 2020-21 Covid-19 period when some of its retailer channels were closed in hard lockdown, the company has registered strong results.

A research paper from American Express found that the pandemic had changed consumer preferences when it comes to payment, finding that people will now actively seek out shopping options with a mix of

// WHAT’S INTERESTING NOW IS THAT WHEN YOU CHANGE A BEHAVIOUR THAT BECOMES ENTRENCHED. WHAT WE ARE SEEING NOW IS THAT MANY OF THOSE DIGITAL TRANSACTIONS HAVEN’T GONE BACK TO THE RETAILERS OR TO OTHER CHANNELS //

PAY@

// PRESENTING DIGITALLY BUT PAYING IN-STORE WITH CASH, THAT IS BRIDGING DIGITAL AND PHYSICAL, IS ALSO A COMMON THEME COMING THROUGH WHICH IS INTERESTING // payment solutions. More than half of the respondents said they would spend more, and interact more frequently with businesses that accept digital payments.

The digital offering that Pay@ has put so much work into is proving its worth.

“Payments businesses are doing well and what’s very interesting is that payments really are the fuel of any business or the economy. It was great for us as a business that we could really add value to our stakeholders over the last year. We actually grew our volumes and values by almost 25% since the start of Covid. It wasn’t business as usual though. Most of our payments are still going through the retailer channels because the lower LSM consumer brackets are still largely limited to this channel. You would think that with five weeks locked down that we had last year, the instore payments channel would just come to a grinding halt.

But in fact, cash and card payments at in-store at retailers increased over this period. The clothing retailers closed and the food retailers were open. We have a mix of both so we didn’t get any transactions from the clothing retailers, but the food retailers increased transactions,” explains Hardie.

“However, we were incredibly well positioned on the digital side, and we saw over 150% growth in digital transactions. What’s interesting now

is that when you change a behaviour that becomes entrenched. What we are seeing now is that many of those digital transactions haven’t gone back to the retailers or to other channels, that’s become the standard way people are paying and it’s only growing.”

The American Express study confirmed this switch with more than 60% of people stating they plan to continue using contactless, digital payments in the future and more than a third of respondents saying they would actively avoid cash-based transactions in the future. This is especially true in developed markets.

The diversity of Pay@’s aggregation model has seen it through the pandemic. Where one sector saw a downturn, others ticked up. It shows the benefit of aggregation and scale – something which Pay@ has achieved but where others are yet to match.

“Cable TV, insurance (people were wanting to have funeral cover, etc), money remittance; it was fascinating,”

says Hardie. “In terms of the growth in money remittance, we were wondering, nobody’s working so where’s this money coming? These are migrant labourers, living in South Africa, sending their money back home. One of the key alternative channels for sending money home is to give it to a taxi driver. He drives the 15 hours or three days to get back to Malawi or wherever, and then goes and gives the money to the family in that area. With borders closed, that whole channel was stopped. We saw an increase in volumes and lots of interesting stories that have come out.”

PRESENTMENT IS KEY As the pandemic raged through closed economies, worry beset businesses with outstanding bills. Hardie puts a large part of their success in supporting these businesses, even in the most challenging times, down to a focus on presentment.

“It becomes so critical to find your consumer,” he says. “Sure, they might

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INDUSTRY FOCUS: FINANCE

be struggling and might not be able to pay but if you’re not finding that person, then you’re not going to even have a chance of getting that payment, and so we’ve seen lots of interest now around the digital presentment.

“Presenting digitally but paying in-store with cash, that is bridging digital and physical, is also a common theme coming through which is interesting.”

According to PYMNTS.com and Versapay, more than 60% of CFOs in small and medium sized businesses see innovation in the payments space as vital to the future of their income, but most see digitising as too expensive to handle internally. In Africa, consumer payments are expected to exceed $2.1 trillion by 2025 with only around 5% through digital rails.

“If you look at some of the problems in payments industry, poor experience, value chain problems, and the lack of a multi-dimensional approach etc are big hurdles. We feel

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the aggregation model is going to become a more common and popular model going forward,” says Hardie.

“South Africa has always been quite advanced in Africa and there is a dichotomy of a highly sophisticated paying markets combined with the grassroots side and a lot of the time

you have companies that service one or the other but not all. That is where our aggregator model comes into play.”

This aggregator approach is not only attractive from an efficiency point of view, it has a major impact on cost base. By investing in a partnership with Pay@ companies can benefit

PAY@

// WE ARE INTEGRATED TO, FROM A SOUTHERN AFRICA PERSPECTIVE, THE LARGEST INDEPENDENT NETWORK OF COLLECTION POINTS // from a reduction in process costs and overhead saving. “There are many millions of transactions each month and only 0.005% of those require human intervention, so it’s an incredibly scalable, seamless process,” says Hardie.

“We process large numbers each month but we only have 40 people in the company. We really are a tremendous example of fintech scalability. It’s really more about the system.”

To date, Pay@ has seen tremendous and consistent year-on-year growth.

This growth is not through acquisition, merger, or over stretched borrowing; it is organic and completely funded by the Pay@ balance sheet. Hardie is proud of the company’s history but ambitious and fervent about the future.

“We are super excited about the next three years,” he smiles. “The

company is 14 years old now. We’ve built a tremendous platform, not only with our current set of clients and networks, but also the actual system capacity and governance and all of those good things. Over the next three years, we’re looking to grow additional services into our current biller base, onboard the tremendous pipeline we have of new billers, and diversify both regionally and from a service perspective. We’re looking for exponential growth,” he concludes.

With Pay@’s digital drive coupled with ‘new normal’ market conditions present globally, the business is future proofed for the ever-increasing move to digital. That said, it also is tremendously strong in its cash and in-store payment offerings, which is important as it can continue to support this payment channel

which will take time to be replaced by digital and this also enables Pay@ to assist its retailer partners to migrate into the digital world. As the coronation of digital edges closer, another new normal approaches where digital money movement will be more common and bill presentment will gain even more importance. In some countries, especially in the developing world, it can cost 1.5% of GDP to print, replace and distribute bank notes annually.

Bill issuers and payment networks alike must be ready for a switch. Pay@ is the ideal partner for the now and the future.

WWW.PAYAT.CO.ZA

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FIRST EQUITY

Gearing Up for

Post-Pandemic Take off PRODUCTION: Timothy Reeder

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

//

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

Times of unrest and crisis put insurance at the forefront of a nation’s thinking, and any disruption to consumer and commercial spending caused by the epidemic expected only to delay, rather than alter, Africa’s insurance growth pattern. South Africa, the largest and most established insurance market, holds 70% of premiums on the continent.

Founded in 2006, now with 16 offices in nine countries around Southern Africa and the Indian Ocean islands, first Equity is no stranger to disruption, established to shake up what it called a jaded sector, lacking innovation and

professionalism and highly concentrated on a handful of a multi-nationals. “first Equity was founded with the express intention of creating a credible South African alternative to the few major players in the corporate and commercial short-term industry at the time,” the company details, “and challenges the status quo of insurance broking in South Africa.”

ROBUST RESPONSE This novel approach and abundance of experience has earned first Equity a reputation for top-quality, individually tailored customer service and is one in its three-pronged approach to sustained growth and success. To be able to continue to deliver it seamlessly, without interruption, has been as crucial as it has been impressive to witness.

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

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

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

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

With staff wellbeing assured and a swift shift to a new way of working accomplished, it was first Equity’s diversity of operations which then helped it navigate the tumult of this epoch. “On the client side, we represent a number of different sectors and countries within our group,” Watson

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INDUSTRY FOCUS: INSURANCE

explains. “In most cases there has been a fairly negligible impact, really, and most people have kept their existing insurance going even if they might have delayed any new purchases.

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

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

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// WE WANT TO BE THE BIGGEST HOMEGROWN INSURANCE BROKING GROUP IN AFRICA // TOURISM’S TRAVAILS This is especially true considering that 30% of first Equity’s business comes from tourism, whose operations and profitability would be near the top of a table of those hit hardest by the pandemic’s consequences.

“A large proportion of our companies fall within the tourism insurance value chain, either providing products or acting as specialist brokers,” Watson says. “Clearly the covers in place did not factor in an epidemic like this, and things like the business interruption claims which have arisen have been particularly tricky. To get them paid, our broking and claims teams have

been the conduit between insurers and clients which have included, as an industry, ongoing legal battles and lengthy clarification and negotiation which, while necessary, has been very time-consuming.”

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

FIRST EQUITY Bryte_Enterprise Africa feature.pdf

“The tourism business has been hit hard and hasn’t recovered as quickly as we would have expected, but we know that this will turn,” Watson reasons.

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

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

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

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

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

“We are also constantly on the

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lookout for opportunities to merge, acquire or work with the right partners, as the third of our key growth strategies,” Watson details. “This works alongside our drive to fashion bespoke products which respond to the risks of certain key niches, in a way that is different to the commoditised offerings already out there.”

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

launch a digital platform which we believe is a world first.

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

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

WWW.FIRSTEQUITY.CO.ZA

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ADUMO

Digital Payment Solutions to

Accelerate Growth and Change PRODUCTION: Timothy Reeder

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

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CEO PAUL KENT

INDUSTRY FOCUS: FINTECH

//

Processing in excess of R80 billion in transactions every year across more than 50,000 active clients, and with 90,000 active card machines dotted across 13 African countries: this is Adumo.

“We are not a bank,” Adumo makes clear, “we are South Africa’s largest independent payments processor trusted by retailers across Africa.

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

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

“Our ecosystem offers working capital requirements, consumer engagement platforms, business

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support solutions, an in-store consumer credit platform, retail point of sales software and hardware, customer analytics, electronic voucher distribution and private label card issuing, all from a single provider,” Adumo says of its allencompassing offering.

The company brings together a number of powerful brands under its umbrella, each offering serval key elements. Humble, for example, is a proudly South African, cloud-based all-in-one point of sale, payments, e-commerce and loyalty solution, while SwitchPay is an Alternative

ADUMO

Payment Platform that merchants can activate consumer credit offerings in-store and online.

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

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

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

Sureswipe deals largely with formal SME retailers needing basic payment solutions, perhaps with

// THE PANDEMIC AND ASSOCIATED IMPACT ON CONSUMERS AND BUSINESSES ARE TRANSFORMING THE FACE OF THE PAYMENTS INDUSTRY //

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

A CHANGING LANDSCAPE Onto these founding businesses Adumo has continued to expand and re-structure around this firm client-centric approach, as multitude factors align to accelerate the

adoption of digital payments in South Africa. Traditionally a cashdriven society, it has registered a clear and sustained shift toward electronic payments over recent years, with card payments expected to rise by 7.6% to reach R1.4 trillion in 2021 according to GlobalData.

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

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INDUSTRY FOCUS: FINTECH

// WE THINK WE CAN RESHAPE AND CHANGE THE PAYMENTS ENVIRONMENT IN SOUTH AFRICA // cash payment methods, pushing the use of card payments in the country.”

The cashless preference for payments has soared in South Africa during the pandemic, with an increasing number of consumers and merchants embracing digital channels for their purchases.

To further encourage the shift away from cash, banks in South Africa nearly tripled the limit for contactless card payment without the need of a PIN, from R200 to R500.

Adumo’s offering has evolved to match this trend. “We now have omni-channel solutions for both the SME and medium enterprise

segments,” Kent says, “and our one of our acquisitions of this year was of Wirecard South Africa, now Adumo Online, which means we now have e-commerce solutions for the online-only merchants, too.

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

“This move has allowed us to really deep-dive into a specific vertical of the food and beverage, or hospitality, market,” he continues, “as it gives us the software to run

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and operate a restaurant through to payment solutions and loyalty platforms, even access to credit. It is further evidence that payment-led solutions, when understood at a vertical or sector level, can support and grow businesses, as we are doing with hospitality.”

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

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

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

Over 50% of South Africa’s workforce is employed by micro, small and mediumsized enterprises, which in turn contribute around 34% of GDP, and access to digital and mobile payment solutions is paramount to increasing footfall and improving customer retention by supporting

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the transition away from cash-based transactions.

“The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an all-time high,” reinforces Kent. “The funds we have raised from our new equity partners will help us roll out new

// WE HAVE DEVELOPED A BROAD RANGE OF PAYMENTLED SOLUTIONS FOR EACH MARKET SEGMENT //

2021/09/06 15:04

payment innovations and purposebased lending services to support consumers and retailers as they navigate an uncertain 2021.”

While slightly disruptive to Adumo’s initial five-year plan, Kent admits, the pandemic has really only really caused Adumo to react, and perhaps expedite the execution of important objectives. “Because of the strong leaders and cultural alignment across the different businesses, we have been able to seize the opportunities which have been presented. Acquisitions, for example, probably came in quicker than expected, and all aligned with the plan we put together at the outset.

“We think we are in a place now where we can reshape and change the payments environment in South Africa for the benefit of all

stakeholders,” Kent closes. “We will push regulatory change over time, and keep improving the alignment of our own businesses to best open up the potential they possess.

“We want to be known as experts in payments, but we are building customer-centric solutions that go beyond the one-size-fits-all approach. As the payment world develops we are structuring our business to give solutions which are valuable, easy to operate and less complex.”

WWW.ADUMO.COM

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FS SYSTEMS

Cutting-Edge Solutions

to Protect People, Property and Assets PRODUCTION: Benjamin

Southwold

Able to cater to commercial and industrial customers with people, property or assets in need of protection, FS Systems delivers end-to-end life safety and electronic security solutions across Africa and Latin America. In its landmark 50th year of security solution enterprise there is even more to celebrate at FS Systems, as new divisions and a resilient response to the pandemic pave the way for another half-century of success.

//

In 1965, Duane Pearsall and Stanley Peterson developed the world’s first batteryoperated smoke detector in the USA, prompting, just four years later, South Africans Margaret and Robert Macfarlane to establish Fire Fight, a company catering to South Africa’s great need of the installation and integration of fire and life safety devices in Observatory, Cape Town. A hectic two years on the founders opted to concentrate on manufacturing their own such products, seeing the company split into the dual forces of Ziton and Lintek.

The absence of legislation to support fire detection in SA in the 1970s made for many challenges, but equally an abundance of innovations and helped Lintek to become one of only a handful of specialists in the Western Cape. In the 1980s, Lintek became FireSpec, staying faithful to its roots in the fire market

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while expanding into other areas of enterprise security including access control, surveillance, voice evacuation and physical security information management (PSIM).

In the 2010s, FireSpec was again rebranded, this time to the FS Systems of today, and with the change of moniker came its first international projects for the mining and gaming industries in Latin America and Africa.

Today, the FS Group consists of four companies with more than eighty employees on its team, consummately executing projects in more than nine countries in Africa and Latin America.

FS CONNECT FS Group’s head office remains in Cape Town, but its reach has swelled via expansion outside of its home territory through FS International, dealing with Africa and Latin America, and FS Ghana, which caters to West Africa.

“Our newest addition - our new baby,

meanwhile” Cathrine Herwill, Marketing & Sales Enablement Manager, smiles, “is FS Connect, a division also based in Johannesburg and geared firmly toward 4IR and cloud-based technologies and systems.”

Managing Director of FS Connect, Thabo Wessie elaborates: “Economic growth will ride in the cockpit of technology, and as FS Connect we are at the centre of making sure we use this technology to drive business efficiencies, protect and unleash performance of business assets. Things are moving quickly, and we are looking forward to making this technology available to the market.”

Despite the tumultuous conditions which immediately followed its launch in March last year, Herwill reports that initial dealings have been great cause for positivity. “It managed to navigate and overcome opening its doors just before the various lockdowns,” she says, “and is going extremely strong.”

INDUSTRY FOCUS: SECURITY

50 YEAR CELEBRATIONS Moves like this perfectly encapsulate one of the central pillars of FS Systems’s success, Carlo Klopper abridges. “FS Systems has stayed true to its roots in the fire detection and enterprise security market, while making sure that we continuously grow and stay up to date with the latest technology.” This year holds special significance, as it sees FS Group notch up half a century of continually innovating and burgeoning to refine its ability to protect people and assets, especially harnessing technology to achieve this.

“It is a huge milestone for us,” agrees

Herwill. “Our story began in 1971 as a tiny business operating out of a little house, focussing on fire protection and suppression systems. While a large portion of our business is still defined as life safety, our reach has expanded now to encompass integration with video surveillance and access control, to build entire integrated systems.”

These 50 years of operation equate to more than a century of combined security industry management, and have brought with them a variety of global partnerships with industry leading technology suppliers and

// WE PRIDE OURSELVES ON TURNKEY EXECUTION, FROM SYSTEM DESIGN, DOCUMENTATION AND COMMISSIONING TO SYSTEM HANDOVER //

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important official accreditations. “We employ highly qualified specialists who regularly undergo training in their relevant fields,” FS Systems further underlines. “We have a dedicated budget set aside for training to ensure that our technical teams are certified.”

FS Systems offers the latest product sets in six key areas: HD video surveillance, Fire protection and life safety, Enterprise access control systems, integrated security management, systems, predictive maintenance and 4IR, Internet of Things (IoT) and Cloud Solutions.

“A lot of the focus has been on the employees, celebrating them internally,” Herwill says of marking this remarkable landmark. “We have a lot of longstanding employees, many of whom have been with us for in excess of 15 years and have walked a long journey with the

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company. A huge part of our success is directly thanks to them and we wanted to celebrate their stories and favourite moments with FS Systems.”

Having celebrated its first five decades, thoughts now turn to the next five, and future considerations are a top priority for the company. “We are

// IT HAS BEEN AN INVALUABLE LEARNING EXPERIENCE FOR THE COMPANY TO ACHIEVE WHAT WE DID DURING THE PANDEMIC //

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constantly evaluating new products so that our clients are always up-to-date with the latest features, upgrades and technology available.

“We remain future-focused and will continue to provide an end-to-end solution for our customers.”

PRAGMATIC POSITIVITY Increasingly, as we see the gradual return to a semblance of normality in operations, we are finding that businesses are dealing with the pandemic’s impact in one of two ways: either it has caused widespread despair and unassailable turmoil or, as is evidently the case with FS Systems, it has in fact been an invaluable opportunity to reshape and rethink, with many positives to grab among the upheaval.

“Each of our companies has crafted its own niche or area of expertise within

the security, fire and life safety space, with its own unique product solutions,” Herwill closes. “Digitisation of all our processes is going to be a real strategic priority moving forward,” she notes, “making everything accessible and workable online.

“We strive to be the leading technology provider for life safety and electronic security solutions in Africa,” FS Systems summates. “By becoming experts in our field,” concludes Carlo Klopper, “we have been able to bring global trends and technologies to the African market for the last fifty years.

We look forward to proudly protecting people and assets for the next 50 years to come.”

WWW.FS-SYSTEMS.CO.ZA

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KALLOS GLOBAL

Pick of the

Pickers PRODUCTION: Colin Chinery

Kallos Global is a major global driver in South Africa’s growing multimillion-rand fresh fruit industry. “We are seen throughout the industry as a route to market strategist, specialising in developing nations and their informal sectors,” says CEO Brendan Langeveldt.

//

Essential for our well-being, critical in combating diseases, aid to longevity; fresh fruit is a Good Health imperative. And a massive earner for South Africa.

Of the 4.7 million tons produced here, almost 60% is sold abroad, a R22 billion generator - 2.5% of GDP - making it the biggest segment of the nation’s crucial farm exporting arm.

A key player in the on-going drive is marketing and export specialists Kallos Global of Durbanville, Cape Town, South Africa.

Working predominantly in the apple market and focussing on top produce from quality growers, Kallos Global exports to markets across Africa, the Indian Ocean Islands, and increasingly, the Near, Far, and

Middle East, Russia, and Canada.

From pome to citrus and grapes to pomegranates, South African fruit is among the best. Kallos Global is an African champion and Global Brand Ambassador, representing the premium fruit brands of its SA based growers and other top producers across the world.

With extensive product and market knowledge, expertise, and a multi-lingual marketing team, Kallos services its customers with value added solutions.

“It’s about delivering a sustainable value proposition to the industry. It’s not so easy to say that you are the best in the world, because that’s a biggy. But this is what we strive to achieve, and we have been successful in doing that,” says CEO Brendan Langeveldt.

SUSTAINABLE PLATFORMS “While Africa remains the heart of our operation, we have developed sustainable global platforms operating in other strategic developing informal markets. We represent committed and dedicated third and fourth generation growers who nurture their lands passionately and professionally.

“By delivering top quality produce, these growers enable Kallos to fill critical shelf space in our markets across the world,” says Langeveldt.

Kallos was founded in 1943 by Etienne Kallos, with the vision of servicing the African continent with fresh fruit.

His son, Achilles, joined the company in the early 1960’s, over the next four decades he took the company

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INDUSTRY FOCUS: EXPORT

and its operations to new heights before retiring in 2000 at the age of 70.

Brendan Langeveldt, a fruit industry executive veteran, supplied Kallos since 1989. He acquired an equity stake and a seat on the Board of Kallos in 2003. Brendan was appointed CEO in 2015, where he is affectionally known as ‘Captain’.

MARKET STRATEGISTS “We have repositioned our company, grown exponentially over the past two decades, and are now recognised throughout the industry as a route to market strategist, specialising in developing nations and the informal sectors therein.

“For us, Africa is our playground and we have manifested an exceptionally strong and well-respected presence throughout 42 countries in Africa, specialising in Central, West and East Africa, as well as capitalising on all the Indian Ocean islands including Mauritius, Seychelles, Mayotte,

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Maldives and Reunion. We also have representation in Indonesia, Malaysia, and Vietnam. We have been fortunate and have grown in leaps and bounds,” Langeveldt details.

Kallos’s close relationships with Growers and Receivers across the world ensures mutual growth and sustainability, ensuring year-round seasonal supply.

“Through product knowledge, experience and diversification, we have grown to offer an array of value adding produce, priding ourselves in supplying our global Receivers with a continuous array of produce year-round.”

While Kallos is active in the formal sector, notably supermarkets in the Russian and Canadian retail sector, over 90% of its business falls within the informal sector - small-scale owner-operated enterprises including street vendors.

Despite the high concentration of formal retail ownership in South Africa’s food and grocery sector, the informal food sector still accounts for 40 to

// DEMAND HAS CARRIED OVER INTO THIS YEAR AND WE HAVE A SOLID FOUNDATION FOR CAPITALISING ON SALES // 50% of sales – a take-up notably higher among households in poorer neighbourhoods. Elsewhere in Africa, the proportion is higher.

For these consumers, and for Kallos Global, the arrival of Covid-19 and its counter measures was a massive blow.

DOWN ON THE STREET Following the March 2020 South Africa lockdown - and despite the supply of food being identified as an essential service - street fruit traders were immediately stopped from operating,

KALLOS GLOBAL

losing their incomes overnight.

“Little was known about Covid, and there was a lot of panic,” says Langeveldt. “Ports closed, there were less volumes going into both the formal and informal trades, and street vendors - a huge percentage of our business couldn’t conduct business and sales fell quite substantially.”

In 2019 Kallos placed 2000 - 40 ft reefer containers onto their established shelf space, securing R800m for the Kallos Group. In 2020 volumes dropped to 1500 containers resulting in a lower revenue of R600m, down 25%.

Covid, with all its devastating baggage, had some silver linings with a few category winners, one of them being fresh fruit. Widely welcomed for its publicised counter-infection properties, citrus sales, in particular, have seen a surge, as the pandemic spurred demand for vitamin C. “The single biggest fruit category shipped into Africa is apples, by far the biggest percentage at 78% of our basket, with grapes at 10%, and citrus fruits at 8% with the balance of 4% made of various other fruits and vegetables.

“People seeing the advantages of maintaining a high level of vitamin C, prompted substantial demand for South African citrus resulting in record returns back to growers. Surprisingly, Africa competed successfully with other global citrus market returns.

“Demand has carried over into this year and a solid foundation has been laid for capitalising on citrus sales. As the saying goes, ‘The fruit follows the money’,” says Langeveldt.

And across a wider global plane, the fruit industry is seeing Africa as an increasingly attractive marketplace.

AFRICA STEPS UP “Prior to 2013, the global fresh fruit industry regarded Africa as a pretty small deal. But we persevered and pursued, and became the pioneers, in effect saying, if you want to establish a footprint in Africa, you need to put your money where your mouth is.

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INDUSTRY FOCUS: EXPORT

“We set up ‘shop’ in Ghana, Nigeria, Cameroon, Burkina Faso, Mali, Rwanda and Tanzania, together with much needed infrastructure so as to discharge cargo into a cold store, without which you couldn’t maintain the cold chain needed to sell fresh fruit.

“By doing that, sticking to it, and getting the support of the growers, we established a sustainable demand for high quality fruit.

“And from there it has grown.

Others have piggy backed on us, and that’s fine,” insists Langeveldt.

Africa, especially West Africa, is now “a massive, critical market” for South Africa’s Golden Delicious apple crop.

“Apple sales culminated into a domino effect resulting in shipping grapes, stone and citrus fruits.

“Our fruit basket has grown, and we are now even doing kiwi fruit from Italy and hope soon to be shipping from New Zealand. Kiwi fruit is a hard one to sell, especially into a developing nation, trust me,” Langeveldt smiles.

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ON-GOING CHALLENGE If 2020 was challenging, this year is even more so, Langeveldt explains.

“So far, it’s been a flat line, and we are doing the same as 2020.

Covid is still with us, and now we are also having to deal with another one of its consequences – container/ equipment shortages.

“Due to misplaced equipment globally, we have a shortage of containers. We have demand, we have shelf space, and we’ve got the fruit, but we can’t meet market demand.”

But for a company where “tenacity, perseverance, guts and courage” are built into the DNA, challenges are temporary obstacles on the road to success.

Fruit plantings and growth are encouraging as is the Kallos global footprint.

“Our passion, culture and integrity are paramount to establishing and maintaining successful, long-term relationships

// BY DELIVERING TOP QUALITY PRODUCE, THESE GROWERS ENABLE KALLOS TO FILL CRITICAL SHELF SPACE IN OUR MARKETS ACROSS THE WORLD // throughout the fresh produce industry,” says Langeveldt.

Solid relationships and word-ofmouth recommendations are 95% of the Kallos marketing strategy.

“Growers recommend us to other growers, our footprint has expanded, and as a result we have become one of the biggest fresh fruit suppliers into Africa.”

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THAT PERSONAL TOUCH “It’s the personal touch, there’s no ‘one size fits all’ with Kallos, absolutely not,” confirms Langeveldt.

// GROWERS RECOMMEND US TO GROWERS, OUR FOOTPRINT HAS EXPANDED, AND AS A RESULT WE HAVE BECOME ONE OF THE BIGGEST FRESH FRUIT SUPPLIERS INTO AFRICA //

“Kallos has three main drivers,” says its CEO: “our primary driver is unrequited passion, the second driver is striving to be the best in the world at developing sustainable Route to Market strategies for our grower base, each one is different; you can’t throw a blanket over it” “Our third economic driver is our people. Our People are our single biggest asset. Now, if we draw three interlocking circles, with each circle representing one of the three drivers, then the ‘sweet spot’ is where all three circles overlap and intersect, this is what makes us different - this ‘sweet spot’ is our brand culture.

“It has taken years to develop our brand culture. It’s having a disciplined and passionate team consisting of the right people, doing the right thing at the right time, living by the Kallos

Code of Ethics. Just like the cowboy, mending fences, branding and driving cattle to market, collecting the strays, ever protective of the herd, the Kallos Cowboy ensures that the rancher sleeps soundly. Every ranch needs a cowboy, and every cowboy needs a ranch.

“I’m blessed to be the captain of a great team and to have a happy marriage of 41 years. So, I guess you can say I’m one of these old school, lucky guys. I have a mistress, she’s called Kallos, and I spend more time with my mistress than I do with my wife. But my wife knows my mistress well, Kallos is a mistress she can respect.”

WWW.KALLOS.CO.ZA

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GLOBEPAK

Project Siyakhula

Propels Globepak PRODUCTION: David

Napier

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

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

//

Kwena George Mmonwa is a distance runner from Tembisa.

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

Much to his surprise, he ran 07:23:53, earning a silver medal. He also grew

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from a career perspective, receiving promotions and gaining seniority.

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

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

another top performer – Globepak.

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

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

INDUSTRY FOCUS: MANUFACTURING

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

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

“We have laid hygienic epoxy

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

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

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

In September 2020, after a chaotic year for all businesses, discussions began at executive level about expanding Globepak’s capacity.

The company was quickly outgrowing its existing infrastructure and, with future demand expected to spike across several new product ranges, the decision was taken to move Globepak to a new site at Louwlardia Logistics Park in Centurion. To make the journey extra exciting, USN decided to relocate its entire

distribution centre, warehousing, and office at the same time.

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

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

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

This uptick in capacity and activity will inevitably create new employment opportunities. “The fact that we are

GLOBEPAK

putting in two additional packing lines already requires additional manpower to operate those lines. As the volumes grow, the other areas within the factory, especially in the warehouse and support functions, will need to grow too,” says De Bruyn.

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

“I come from a background of building factories in the food and beverage industry and I have loved the opportunity to be able to set this vision and see it through.

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

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

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

The online fitness programs became popular, and socialising was only happening outdoors. There was a big uptake in our category of products and we realised that, if the growth was maintained, we would need the larger facility. It has been maintained from September 2020 until now and that has been great for us.”

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INDUSTRY FOCUS: MANUFACTURING

// WE HAVE BEEN PREPARING THE AREA ON SITE TO HOUSE THE GLOBEPAK FACTORY AND MAKE SOME STEP CHANGES IN BOTH CAPACITY AND EFFICIENCY TO MAKE IT A TRULY WORLD-CLASS MANUFACTURING FACILITY // Despite major success so far, now is not about coasting for Globepak. The company remains cautiously optimistic, but De Bruyn is mindful of the challenges that will likely need hurdling. “Regarding the recent unrest in South Africa, we were unscathed. Our location and the areas our people live remained untroubled.

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

“We are cautious as most of our material supply, and some of our equipment for our new site, comes

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through Durban harbour. We haven’t been affected yet, but I am conscious that we could see some impact on supply through Durban. To date, there has been no direct impact.”

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

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

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

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

and collagen has been a rising star ingredient across multiple ranges,” De Bruyn details.

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

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

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

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

“Our second biggest client is BioGen. They also have big growth ambitions but they have been sold exclusively through Dis-Chem, which is also USN’s biggest channel. BioGen has been exploring operating more independently and they have now launched in Decathlon.

“We pick up a few smaller challenger brands which may be seen as competitors, but the reality is even the biggest nutrition manufacturers in the US also

GLOBEPAK

manufacture for their competitors. It is not uncommon for factories to manufacture for multiple brands.

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

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

With a push on new products and pumping out large volumes for export, all while bedding in new tech and equipment at a new site, it will remain crucial that Globepak’s focus on the core is not neglected. Since 2000, USN has prided itself on an industry leading whey protein product, endorsed by

Founder and CEO Ablé Geldenhuys.

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

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

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

“From an employee perspective, most people have been with Globepak since its establishment. The company was started from scratch around 11 years

ago and many people here have seen that entire growth story,” says De Bruyn.

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

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

WWW.USN.CO.ZA

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SCRIBANTE CONCRETE

Durable, Reliable Solutions

Given the Personal Touch PRODUCTION: William

Denstone

From humble beginnings more than 20 years ago Scribante Concrete has constructed an unmatched reputation on the way to becoming one of the largest privately owned ready-mix concrete suppliers in South Africa. National fleet expansions, personal attention to each and every order and central involvement in a suite of impressive projects are building up the Scribante Concrete brand ever further afield.

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INDUSTRY FOCUS: CONSTRUCTION

//

Scribante Concrete has established itself as a reliable, safe, high-quality, experienced Readymix supplier with expertise spanning South Africa’s most fundamental industries. “We are a full service, ready-mix concrete producer with experience in commercial, industrial, renewable, civil, residential and agricultural projects throughout SA,” the company explains, with the reach to match this comprehensive suite of applications.

“We run a national fleet of over 140 trucks which are able to relocate to

areas when your project requires it.”

Also crucial in keeping Scribante Concrete atop a competitive pile in South Africa is its ability to apply its trademark care and pride to every client, whether large or small in project scale.

“We understand that personal attention to each and every order, and each and every customer, helps define great service,” the company states.

“Small contractors and homeowners alike are treated with the same courtesy and attention to detail as our largest customers doing the largest pours.

// OUR QUALITY DRIVE HAS LED US TO BECOME ONE OF THE MAJOR SUPPLIERS OF READYMIX TO THE VARIOUS WIND FARM PROJECTS AROUND SOUTH AFRICA //

“We wholeheartedly believe that our combined efforts will allow us to become a stronger, more efficient company,” it assuredly asserts. “We are confident that this change will only strengthen our ability to provide consistent quality products and services to our valued customers.”

STRONG FOUNDATIONS One aspect that has always been central to Scribante Concrete’s ethos and vision has been to construct a team founded in positivity and on a family spirit.

This has enabled it to build a culture where employees are selected not only because they are highly skilled, but also because are adaptable and communicate well. The company has a longstanding and robust approach to its recruitment, Sales Director Eric Fouche told us when we last spoke.

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SCRIBANTE CONCRETE

“We do try to keep our staff compliment low to be efficient, and we try and keep everyone involved in all facets of the business. We always joke within the company that our receptionist becomes the bookkeeper becomes HR becomes the Manager.

Everyone is always moving up and if you come into our company, it’s likely that you’re destined for greater things,” he outlined.

“We only have a few directors in Scribante Concrete and previously we were all involved with all aspects of the business and could fill in for each other easily.”

Director Silvio Scribante agrees, ascribing Scribante Concrete’s triumph to date not only to its people and their expertise, of course indispensable, but also to the quality and efficacy of its operations. “Our growth and success is

attributed to our competent staff, but also to the manner in which we are able to offer solutions-based products to all of our clients.”

Scribante Concrete’s footprint has swelled to number branches in Port Elizabeth, Coega, Jeffreys Bay, Kariega, Mthatha, Peddie, Richards

Bay as well as in Lesotho. In line with this spread, Fouche added how Scribante Concrete’s aspirations have also grown in scope while retaining the passion, determination and humility that has powered its attainment of the highest standards in all it has done to date.

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INDUSTRY FOCUS: CONSTRUCTION

“Our mindset now and our mindset when the company was founded is different. We definitely found things challenging in the early days, but at the time we were only thinking about a small area – Port Elizabeth. As we grew into different areas, we found more and more opportunities and with every day that passes, we are reaching new heights.”

COMPREHENSIVE SERVICE “We have remained a business with a family feel,” he insists. “We have grown so much, and our reach is now so widespread, that we also need to bring corporate elements as our projects are growing and our employee base in growing. We certainly want to maintain a team culture where everyone can be heard.”

As Scribante Concrete has boomed in size and scope, so has its range of services. Fouche explains how the company has gone about achieving this so comprehensively.

“With today’s market in SA being as tough as it is, it is important to ensure that your brand stands out from the rest,” he begins. “Scribante Concrete has done just that over the past few years with major focus on the way we service our clients both commercially, and through our mobile divisions.”

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“Our commercial footprint is continuously increasing,” the company states, “and we are always looking for new areas and projects that would be suitable to produce sustainable business, whilst focusing on our mission and vision of always using high quality products and techniques.”

Scribante Concrete goes on to explain that this leads to the production of a Readymix product that is accessible to all at reasonable prices, while continually mindful of the environmental and societal impact of the business.

Its commercial plants are fully automated to ensure the delivery of the best possible product to clients, ranging from 35 to 55 cubes per hour in production and even doubling up on plants at some sites to meet the demand of the area.

In the mobile plant market Scribante Concrete is known for timely and expert delivery whilst ever-mindful of safety. Most are plug and play systems allowing for a smaller carbon footprint and increased installation speed, and consist of wet and dry batching systems.

“Scribante Concrete is also wellversed in high rise building pumping, and has designed special mixes in order

// WE ARE A YOUNG, DYNAMIC BUNCH OF PEOPLE AND LOOK FORWARD TO THE CHALLENGES THAT LIE AHEAD // to resolve quality issues around it,” the company adds, and a fleet of four pump trucks are used in its different operational regions for projects of any size.

“With more than 13 commercial plants nationally, six mobile plants servicing various projects and sectors around renewable energy, shopping malls, high-rise pumping requirement, dams and other infrastructure-based supply, we are also proud to have established a permanent home in Lesotho, servicing both government and private projects,” Fouche sums up.

FUTURE-PROOF PROJECTS “Our quality drive has led us to become one of the major suppliers of Readymix to the various wind farm projects around South Africa,” Fouche relates of Scribante Concrete’s heavy involvement in the energy

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transformation currently underway.

“We are able to offer clients specific solutions tailored to their needs.

Scribante Concrete is proud to be one of the largest ready-mix suppliers to SA’s renewable energy projects in South Africa.”

Scribante Concrete’s wares are propping up some of the foremost new edifices in the country today. Alongside the strong renewables focus in the likes of the Tsitsikamma and Waainek Windfarms, it has laid 10,000m3 at Redhouse Chelsea Interchange, Port Elizabeth on behalf of Basil Read Roads and Earthworks, 5500m3 for WBHO at SANRAL’s Port Elizabeth building and vast quantities at many others, including Baywest Mall and Fairbreeze Mine.

Scribante Concrete’s current undertakings are no less exciting, and include the mammoth R130 million

Massbuild Distribution Centre near to Fairland. While the construction industry in South Africa obviously felt the impact of the Covid-19 pandemic, it is still on track for growth of 6.1% in real terms in 2021, a vast improvement on the 16.5% contraction in 2020.

This has been buoyed significantly by the government announcement of a 10-year infrastructure investment plan worth R2.3 trillion (US$124.7 billion), making it one of the strongest sectors in which to be active currently, and Scribante Concrete has laid the foundations to allow it to reap the rewards far into the future.

“We strive to pair on time delivery with superior quality and competitive pricing,” the company concludes, adding that it really doesn’t have to be complicated to get it right. “What every contractor and homeowner needs from

their ready mix concrete supplier is really quite simple: delivery of the right mix of concrete, in the right quantity, at the right time, at a fair price.”

“My aim,” closes Silvio Scribante, “is to keep growing our current brand both locally and across the border, while retaining the same family feel and service without relaxing on the standards to which I have become accustomed through three generations of successful business.”

“We are a young, dynamic bunch of people,” finishes Eric Fouche, “excited about our involvement in all projects small or large, and look forward to the challenges that lie ahead.”

WWW.SCRIBANTECONCRETE.CO.ZA

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92 million litres of fuel