Hollard Mozambique / FS Systems / Columbit / JCDecaux
Exclusive interview with CEO of Kagiso Tiso Holdings, Paballo Makosholo
EDITOR Joe Forshaw
joe@enterprise-africa.net
SENIOR PROJECT MANAGER Sam Hendricks
sam@enterprise-africa.net
SENIOR PROJECT MANAGER James Davey
jamesd@enterprise-africa.net
PROJECT MANAGER Ekwa Bikaka
ekwa@enterprise-africa.net
PROJECT MANAGER Christina Allcock
christina@enterprise-africa.net
PROJECT MANAGER Eleanor Sarbutt-King
eleanor@enterprise-africa.net
PROJECT MANAGER Jamie Waters
jamie@enterprise-africa.net
LEAD DESIGNER Aaron Protheroe
aaron@enterprise-africa.net
FINANCE MANAGER Samantha Lynn
samantha@enterprise-africa.net
CONTRIBUTOR Manelesi Dumasi
CONTRIBUTOR Timothy Reeder
CONTRIBUTOR Benjamin Southwold
CONTRIBUTOR William Denstone
//In Mozambique, small scale farmers have for so long worked unprotected and exposed to risks from the environment that can destroy crops and livelihoods. But Hollard Mozambique is stepping up to create new products for the market that provide comprehensive protection that can mitigate against serious risk events. The challenge has been pricing in a market without spending power.
In Rwanda, lacking transport connectivity is limiting trade and development opportunities with many delivering vital cargo and goods on foot or bicycle. Vehicle ownership is low and those that do have transport are unable to navigate the tough road conditions. OX Delivers is piloting a new concept where robust electric trucks can overcome all terrains, with zero emissions, bringing large capacity at low cost.
In South Africa, Sanji Electronics is manufacturing security devices for the automotive industry that help in the fight against vehicular crime. For many, electronic jamming is a thorn in the side, bringing worry when parking cars. This type of innovation is often only discovered on the African continent where problems are solved differently and in a way that bypasses traditional mature market strategies.
Creativity continues to shine through despite tough market conditions. Covid lingers, GDP is down, the Russian war continues, and inflationary pressure is harsh. But the business community is not shying away from the challenges. Planning through the cycles, focussing on sustainability, and being inventive is the nature of the companies that are driving success.
We are thankful that we get the talk to the best of the best and we would love to hear from you about why your organisation is an industry leader. We’re on LinkedIn.
Published
by Chris Bolderstone – General Manager E. chris@cmb-multimedia.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 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.
Securing Better Futures Through Pioneering Agri Insurance Scheme
REINFORCING & MESH SOLUTIONS
Strong RMS Builds Solid Growth Strategy
SANJI ELECTRONICS
Secure Sanji Posts Consistent Year-on-Year Growth
FS SYSTEMS
Modern Tech Ignites New Growth Story
42// 50// 56// 62// 68//
COLUMBIT
Commitment to Sound Values Seals Columbit’s Industry Top Spot
JCDECAUX
Transforming the African Out-of-Home Advertising Landscape
OX DELIVERS
Driving the Path Less Taken
AFRIMAT
Diversification Cements Afrimat as Mining and Materials Leader
NESTLÉ
A Healthier, Tastier, More Sustainable Future Is Brewing
KAGISO TISO HOLDINGS
Driven by Impact
PRODUCTION: Joe Forshaw
Leading investment holdings company, Kagiso Tiso Holdings, is providing its investee companies with everything needed to make a difference in the communities in which they operate. Investing for the long-term, this is an organisation creating sustainable value for shareholders. Group CEO Paballo Makosholo tells Enterprise Africa more about growth opportunities.
INDUSTRY FOCUS: INVESTMENT
//Leading investment holdings business, Kagiso Tiso Holdings (KTH) – based in Sandton – is eyeing growth after a challenging period. The economic environment of 2020 and 2021 has seen portfolio value challenged for all, but planning for the long-term and building sustainability into the organisation as a cornerstone of success is helping KTH to prepare for future success.
KTH was established in 2011 when Kagiso Trust Investments and Tiso Group merged to form a powerful black-owned investment company with a strong and diversified portfolio. KTI was built by Eric Molobi, JJ Njeke and Tiso founded by David Adomakoh, Nkululeko Sowazi and Fani Titi.
Today, the organisation is led by Group CEO Paballo Makosholo – a Chartered Accountant, former non-executive Director of KTH and Chairman of the Investment Committee, as well as former COO of Kagiso Capital and non-executive Director of FirstRand amongst many board seats. His current responsibility amongst others involves chairing
the boards of Juta, Future Managers, Urban Brew Studios, Mediamark and Kagiso Media Radio. He is a board member of MMH and he is passionate about development, serving on the board of Graça Machel Trust.
His vision is to grow the portfolio of investments through increasing exposure to existing assets while exploring new opportunities within the worlds in which the group is already strong and exploring new growing sectors: Media, financial services, education, food, and technology.
“We do not have a massive team and we are driven by the impact we would like to have,” he tells Enterprise Africa. “We want to focus on strategic worlds. It is not about having 10 or 15 small stakes, it’s more about having fewer assets with significant exposure. We also recognise that there may be other businesses that are attractive but given their size we may not be able to get the level of stake we want. As long as those investments are within the worlds we look at, we believe we can achieve great growth. For example, in the connectivity space with a Telco -
// WE VIEW OURSELVES AS PEOPLE THAT MANAGEMENT CAN TAP INTO THE ENHANCE VALUE //
because of their sheer size our holding will be relatively small, however we will receive great exposure in terms of growth. We would be happy to invest there, understanding the limitations.”
Currently, KTH boasts stakes in Kagiso Media, Servest, and Momentum Metropolitan to name just a few. These organisations employ thousands of people and contribute significantly to South Africa’s wider economy as well as the communities in which they operate. Any growth and expansion will always be centred around this mantra.
“Eric Molobi said our purpose is clear Kagiso must outgrow us as individuals. Years from now when we are qualified ancestors, it must still be here. It must still be serving people. He
Paballo Makosholo, CEO
sadly passed away in 2006 but today, in 2022, we are talking about a KTH that is thriving. The key is how can we continue to be sustainable,” says Makosholo.
INVESTMENT STRATEGY
KTH aims to be the BBBEE investor of choice in South Africa through a clear and concise investment strategy. Simply, KTH aims for significant influence across a smaller range of large assets. There is a desire to drive pan-African exposure while developing a mix of cash generative and growth assets in both listed and unlisted investments. To date, this strategy has built the company into a shareholder of reference and Makosholo is keen on continuity.
“We are not a passive investor. We do not want to invest and stand back to watch money grow,” he says adding that KTH likes to get into businesses at board level, influencing strategy and managing investments hands on.
“What drives us is that it must be a good business with good management. We are not interested in replacing management,” he continues. “We like to give strategic direction where we can as
with Darren, Keri and Sky Weekdays 6-9am
INDUSTRY FOCUS: INVESTMENT
we are primarily a financial investor and locator of capital. There may be a listed business where your active role is sitting on the board, or you may be in an unlisted business where governance structures are slightly different where you are on the board and management may use you more to further enhance value. We view ourselves as people that management can tap into to enhance value.”
He says relationships with investee companies are extremely strong and the active management strategy pays off in this regard.
“I have great relationships with all of the leaders where we
balance sheet. Where we have 100%
// WE ARE PROVIDING AN ECOSYSTEM WHICH RESULTS IN A PRODUCT FOR LIFE AND NOT A PRODUCT FOR DEATH //
Already active in Nigeria through investment in Me Cure – a leading healthcare business – KTH was delighted to deliver materially on the continent as the first and the only hospital or centre in the entire West Africa to have in-house production of a medical radioactive isotope to stage all cancers using a PET-CT.
“That is something we are very proud of,” highlights Makosholo.
When it comes to expanding further in Africa, KTH is not set to acquire or invest in assets in other African nations at this stage. The strategy is about assisting companies within the portfolio to grow in Africa and organically develop reach on the continent. Servest is keen to achieve a larger continental presence and KTH will back this ambition through collaboration.
“We are looking more at how the investments we have as KTH can grow into the continent so that the management can deliver on expansion opportunities. Any of the investments that we have are capable of growing on the continent and that is something we fully support.”
Currently, new investments are funded through the KTH balance sheet and recycled capital. The result is no pressure to exit investments quickly and a long-term focus around sustainability can be installed – provided assets meet the KTH investment case. Of course, this is a challenging strategy to follow and can limit opportunistic transactions but the company is open and flexible and will invest where clear prospects are present. “We will invest in businesses that may not fit into our current worlds but create good value this will assist us to grow our capital base so that we can fund our core business,” explains Makosholo.
GROWTH OPPORTUNITIES
Asked about new investments and opportunities, Makosholo explains that the focus will always be on the worlds in which the company is active and, as such, an exciting new venture is soon to be launched in the financial services space to aid in the educational sphere, speaking to the core values KTH was founded on.
“Currently, we are looking at finalising our financial year and we are looking at a number of
opportunities for the next financial year. Some are in financial services where we already have a presence.
“We have aspirations to grow in that world and to that end we are launching a new business in October. FutureWise is purpose driven educational-insurance business and its core is to secure the future of bright young minds.”
The concept is around life insurance and should a risk event take place - whether that is retrenchment or disability or death - individuals could receive a benefit that would cover school fees of children until the age of 23. This will be paid directly to the relevant educational institution, this is a product that will provide true peace of mind for many.
“We are providing an ecosystem which results in a product for life and not a product for death. You are able to enjoy that ecosystem while still alive and if a risk event has not taken place you have a savings pot which will help you and your child when they go to varsity. We have been busy with this product for some time and we are excited about its launch,” says Makosholo.
Away from financial services, the media world remains highly appealing and Makosholo is expecting growth here.
“We are aiming to get into new media through the existing media that we have. We are looking at opportunities in that space because we want to grow those assets. Within Kagiso Media we have a number of businesses in the radio, content, and publishing space. The way we think about media in the radio space is looking at how we can acquire audience and increase our share of audience. We understand that the advertising spend is highly competitive and in order to enhance market share, you have to grow your audience by being diverse and engaging. We are busy looking at our position in the media space. Our business Urban Brew
WINNER COMMERCIAL STATION OF THE YEAR 2021
Download and listen www.jacarandafm.com
Studios is telling authentic stories in Netflix and this is a deliberate strategy to participate in new media through provision of world-class content.”
The longer-term strategy across the portfolio is to enhance each world – diversifying in media, innovating in financial services, growing into new areas of education and professional development, and exploring new avenues in healthcare and technology, especially connectivity. “We can see that as an obvious aspect of growth,” details Makosholo. “We have a pillar around connectivity and we are constantly talking to people about opportunities to invest in that world.”
LONG TERM INVESTOR
The core focus in all business activity for KTH is meaningful transformation and black economic
empowerment while making a sustainable difference in communities. To do this, the company must look beyond short-term challenges and plan for long-term impact.
Right now, both macro and microeconomic conditions hamper business and investor confidence and so the organisation must promote the image of trust and wealth in the form of knowledge, like the Ndoro symbol that adorns KTH branding.
“In the South African landscape, we see the issue of power constraining businesses before you add the inflationary pressures and rising interest rates. There is also flight of capital and that adds pressure to the economy. This does impact
Continues on page 13
Impacting People, Perceptions, Productivity and Profits
Level 1 BBBEE contributor, Servest, boasts a partnership with KTH which has created the leading majority blackowned facilities management company on the African continent.
Servest leads the way in South Africa’s facilities management sector, established in 1997 and delivering an unrivalled service portfolio to more than 6500 clients. In 2015, when Kagiso Tiso Holdings took a 51% stake in the business, Servest became the continent’s first black-owned facilities manager.
Growth is on the agenda for this expert business as it targets expansion across the investment portfolio of KTH and partners.
“We have a great relationship,” says Servest CEO and Co-Founder, Dennis Zietsman, of the relationship with KTH. “We find that the team we work with is very collaborative, very helpful and they play to their strengths. Whether it’s finance or funding, they are keen to get involved and that is very useful, adding a lot of value.”
Currently, KTH is invested in eight organisations across various sectors, and those companies have many subsidiaries and operating units. KTH itself is part of the Remgro portfolio and this opens up many opportunities for Servest.
“We are trying to sell an integrated service where we can offer a basket that includes everything from technical services around looking after a facility including energy management, air conditioning, maintenance, through to the soft services such as security, cleaning, landscaping etc,” details Zietsman.
Longer-term, the ambition for Servest is to grow on the continent alongside a partner with significant exposure. These aspirations are well-matched with KTH which has long sought pan-African coverage.
“In 2015, we only had our South African operation alongside work in the UK and a couple of other African countries. We hope to work together to develop markets in certain countries for our services – we know there is a big investment in Ghana and we would like to grow there side by side,” suggests Zietsman.
Already strong in education, mining, industrial, and more, Servest is driven by values, and for Zietsman, this is mirrored at KTH and will allow the pair to flourish together. “We have a strong brand and our priorities are our colleagues and clients. We get everyone working together on the same page, and everyone knows what needs to be done. We have large, complex contracts across a diverse range of customers and they run from 12 months to 28 years.
“We are hoping for more of the same and we are keen on collaborating with KTH to build our network of new clients,” he concludes.
For 25 years, Servest has created a foundation for sustainable growth, and cooperation with KTH is set to further advance prospects for a company that goes beyond conventional facilities management.
Landscaping
Security
Property Services
Catering
Washroom Deep Cleaning Solutions
Kitchens Deep Cleaning Solutions
Cleaning Solutions
Pest Control Solutions
Air Sanitation Solutions
Water Solutions
Parking Management
our portfolio and we are not the only ones experiencing these challenges,” admits Makosholo.
“We are aware that you must invest through the different economic cycles. We understand that there will be different cycles within the investment journey as long-term investors. The cycle we are in currently has been challenging, starting off with Covid and now geopolitical challenges stemming from Russia and Ukraine which impacts input costs for some of our businesses.
“We operate in South Africa and Africa – we are a black-owned business and that is our nature. Not all transactions that we do will be linked to BEE but we have credentials that we are very proud of and we fundamentally believe in the continual transformation of
the South African economy. This continent must be a place where everyone can thrive and benefit from economic activity and we see ourselves continuing as a majority owned black investment company,” he says of the aim over the coming decades.
In terms of tangible, measurable targets, Makosholo is highly ambitious. Using the investments within the portfolio to create endless opportunity and achieve the vision of the founders, KTH can become a true African powerhouse, he says.
“When people look at an organisation like KTH they should see it in its various facets, positively impacting societies in which we operate. Whatever we do must be driven by our purpose and it must provide impact on society. I would be a happy man if this group becomes a R30 billion business – that would be, financially, a great outcome.”
HOLLARD MOZAMBIQUE
Securing Better Futures Through Pioneering Agri Insurance Scheme
For Hollard Mozambique, the fact that smallholder farmers – totally reliant on their crops – are exposed to significant risk from extreme climatic events is unacceptable. For the past five years, the company has been pioneering models which will see smallholders able to take advantage of risk mitigation products so that they can protect livelihoods that support so many. Managing Director – Life & Agriculture, Israel Muchena is passionate about this sector and is certain that it’s better to be safe than sorry - É melhor estar seguro do que pesaroso.
PRODUCTION: Joe Forshaw
INDUSTRY FOCUS: INSURANCE
Israel Muchena, Managing Director – Life & Agriculture
//Manica province, Mozambique – around 62,000km2 centrally located within the country, home to almost two million people – has rich agricultural opportunity. Good rainfall, mild climate, large open spaces, fertile soil, and an abundant workforce make for an attractive offering, but there has never been real growth or expansion in the area. Some put this down to lacking investment and slow uptake of technology, others cite an absence of organisation with most farmers being small scale operations with little cooperation. Whatever the reason for slow development, smallholder famers in the area remain challenged. The story is similar throughout the country.
However, 90% of Mozambique’s food is sourced through informal smallholders. 70% of the country’s
population is employed in the agricultural industry. There is little or no finance or credit available, and the majority of attempts by large foreign investors to scale in Manica have failed. Researchers are often surprised that thousands of smallholder farmers succeed. Clearly, an understanding of local conditions is essential here, and a carefully considered route to market is critical.
Alongside lacking finance, credit, infrastructure, marketing, and government support, the agricultural space across Manica - and further afield through almost all of Mozambique - continues working every year unprotected. Until 2018, insurance was not an option. There was simply no market for risk management in an area also recognised as highly exposed to natural disasters. Drought,
floods, landslides, and cyclones are real threats here. In fact, a report from Germanwatch, commissioned after the killer cyclones Idai and Kenneth, highlighted Mozambique as the world’s most vulnerable country to extreme climatic shocks.
For Hollard Mozambique – a company known for its commitment to the country and upliftment wherever possible – this situation was troubling.
“We looked at all of this and we said we must propose something,” says Israel Muchena, Managing Director – Life & Agriculture.
AGRI MOZAMBIQUE
In 2018, Hollard Mozambique rolled out its first pilot project in the agricultural space – the Agri Mozambique initiative, an innovative concept which sees the company partner with a local
// OUR PROBLEM WAS HOW WE DISTRIBUTE THE PRODUCT TO THE TARGET POPULATION - THERE ARE NO INSURANCE BROKERS IN THE RURAL AREAS AND THERE ARE NO FINANCIAL SERVICES //
seed provider to bring insurance to the traditionally unreachable smallholder farmers in Mozambique.
Using deep knowledge of the local market - developed over 20 years in business in Mozambique, and 42 years as a group – Hollard managed to come up with costings for the industry, and is using ambitious measurement methods to assist in supporting claims. However, its delivery mechanism is the highly impressive differentiator and is pioneering agricultural insurance in the country and region.
“When we came up with the idea of climatic risks and remote satellite sensing, we realised that they could
be effective solutions to identify which areas have been affected and how much we need to pay. Our problem was how we distribute the product to the target population - there are no insurance brokers in the rural areas and there are no financial services,” explains Muchena.
Most smallholder farmers are self employed individuals farming on small sites – often around one hectare, using little or no technology, often without access to basics such as electricity and water. These farmers rarely have bank accounts or formal financial arrangements. They are rural and isolated – not
connected to Mozambique’s main infrastructure. Cotton, maize, cassava, and sorghum are just some of the commonly grown crops.
“The average smallholder is producing 500-600kg of maize per hectare in Mozambique,” details Muchena. “The same crop in Malawi or Zimbabwe is getting 2000kg per hectare. In South Africa, it’s closer to 10,000kg per hectare. We have low levels of productivity and low application of technology. Less than 10% of smallholder farmers use certified seeds, according to the most recent national agricultural survey. When there is drought, they lose produce
HOLLARD MOZAMBIQUE
INDUSTRY FOCUS: INSURANCE
// WE HAVE MANAGED TO CONVINCE PHOENIX SEEDS TO ENHANCE THE VALUE OF THEIR PRODUCT BY INCLUDING INSURANCE AS PART OF THE COST OF THE SEED //
- the conditions are harsh, difficult, and exposed to elements of nature.”
The joint study alongside the University of California, Davis helped Hollard to learn that seed providers are probably an ideal element in the value chain to work with in order to reach smallholder farmers. They already have a distribution network in rural areas and there is also a preexisting relationship of longstanding trust with the smallholder farmers.
“The most exciting initiative we have at this stage is a partnership with Phoenix Seeds in the central province of Manica where highquality seeds are sold to the target beneficiaries with basic climate risk protection,” says Muchena.
The initiative sees Hollard provide much-needed cover to those active in agriculture, promising the supply of new seeds for replanting should a crop fail for a range of climate-based issues. This support for farmers is invaluable and is something they have never experienced before.
GROWING PARTNERSHIP
Hollard’s offering for smallholder farmers is still being refined and, after initial challenges, the product is beginning to be accepted and demanded. It helps that in the first year of trial, the company ended up paying significantly more than it gained in premium, but for Muchena, this is all part of marketing a good
product and proving its worth.
“We felt pressure originally when we conducted a pilot study in 2012 alongside the World Bank,” he says, adding that the initial rollout was to cover 40,000 smallholder cotton producers, earning $100,000 in premium.
“By the end of the season, we paid out $270,000. This doesn’t happen normally with insurance,” he smiles.
“We thought it was terrible and we started off with a bad experience, but what better marketing. We were excited and we thought that people would see we paid $2.70 for every $1 paid in premium and they would come to buy.”
But again, the challenges faced by the country’s smallholders presented hurdles. Farmers have limited capacity to store and preserve quality of their produce throughout the year. To protect themselves from post-harvest losses, they try to sell off their excess
Continues on page 20
INDUSTRY FOCUS: INSURANCE
Continued from page 18
production as soon as they harvest. As farmers try to sell their produce at the same period at the end of the season, the excessive supply leads to low prices. By the time that the next rainfall season is beginning, their meagre storage would have been exhausted and, in some cases, they do not have enough to feed themselves. The same commodities that they sold off cheaply at the end of the last season, cost much more by the time that they are preparing for the next season. One of the research studies of this phenomenon in the local agricultural sector referred to this period at the beginning of the agricultural season as the ‘hunger period’. The farmers have barely enough to feed themselves let alone to buy inputs for the next season.
“How can we go to a smallholder farmer then and ask them to pay for insurance? In our view, because of the way the agricultural value chain operates at the beginning of the season, the farmer does not have resources,” Muchena highlights.
“We would love to market to farmers and explain about the protection we can offer, but we are aware of the financial capacity where farmers don’t have enough to feed themselves. We have managed to convince Phoenix Seeds to enhance the value of their product by including insurance as a value added benefit for their seed.”
The result? A single client for Hollard Mozambique to manage, but access to a large base of beneficiaries quickly and easily. Crucially, this arrangement allows
for the company to effectively satisfy challenging regulatory requirements when onboarding clients, as Muchena explains.
“By partnering with Phoenix Seeds, we have been able to achieve the inclusion of basic climate risk insurance alongside their seeds, meaning we only take them through the process of KYC as they are an established company with all the necessary documentation. Phoenix Seeds becomes the policyholder and the smallholder farmers become the beneficiary of insurance.”
This innovative scheme makes for a simple delivery mechanism that brings much needed protection to those who are vulnerable. The purpose of Hollard Mozambique is all about securing prosperous futures, and this concept talks directly to that ethos.
HOLLARD MOZAMBIQUE
WE WILL CONTINUE
In its infancy in Mozambique, insurance for the agricultural sector looks set to boom. A sector responsible for 32% of the country’s GDP, continuing to operate unprotected, is not sustainable. Hollard Mozambique is gaining first mover advantage and is part of change in the country through which smallholder famers will be able to secure better futures. The challenge now is to present positive market figures and reach more and more smallholder farmers through inventive models, developing the market with each interaction.
“When the percentage of claims exceed 50% of received premiums, insurers start getting stressed,” smiles Muchena. “The financial contribution in terms of group revenue is still small when looking at premium income.
When you look at the expenses we incur in terms of marketing and resources that are deployed, we are spending more than we collect.
“We will continue as we believe what we have achieved so far offers a prototype that could be used to set up schemes at a larger scale. We believe that agriculture will become a major source of growth for the insurance sector and, for now, instead of counting the dollars or talking about the bottom line, we prefer to look at headcount and how much of a social impact we are having.” he concludes.
As the largest insurer in Mozambique, following the acquisition of ICE Seguros in March 2022, Hollard continues to display its pioneering nature, and its ambition for partnership, as it provides a fundamental financial structure for the principal economic
Israel Muchena has authored the only book about the development of the insurance industry in Mozambique.
Available to order today
activity in the country. Alongside its strong offerings across other disciplines, agriculture will continue to receive focus from Hollard as the company develops restorative insurance solutions in Africa, by Africans, for Africans.
Content sponsored by Hollard Mozambique
REINFORCING & MESH SOLUTIONS
Strong RMS Builds Solid Growth Strategy
PRODUCTION: Eleanor Sarbutt-King
Providing the strength and stability across some of southern Africa’s most important construction projects, Reinforcing & Mesh Solutions is a powerful player. An enviable portfolio and a solid project pipeline leave this company well-set for future growth. Commercial Manager, Jason Bewick tells Enterprise Africa more about this important construction player.
INDUSTRY FOCUS: CONSTRUCTION
//Economies in sub-Saharan Africa continue to show reasonable recoveries following the Covid-19 pandemic. The region itself is expected to grow 3.6% in 2022, down from 4% in 2021 according to the World Bank. But South Africa’s struggles with economic growth continue with expectations of a 2.8% slowdown while the regions other big nations – Nigeria and Angola - thrive as a result of increasing oil prices. With the conflict in Ukraine dragging on, the global impact is felt in sub-Saharan Africa where growth is desperately needed. For companies operating here, the environment must be carefully managed. With sluggish economic growth comes uncertainty and hesitancy around long-term planning. In the construction industry – a game very much reliant on longer-term certainty – infrastructure projects provide so much opportunity and must be given the correct conditions to thrive. Government and private sector organisations
need no further reason for timidity.
Fortunately for those that are wellmanaged, properly scheduled, clearly organised, and centred on quality, large opportunities remain. Construction continues in South Africa, and recent government announcements look set to allow successful firms to plan effectively.
The Minister of Home Affairs announced a R6 billion plan to overhaul several border posts; there is a new
organisation set to implement a range of major bulk water resource infrastructure projects; Transnet has declared plans to spend R44 billion on port infrastructure; pension funds are soon to be allowed to invest 45% of capital into infrastructure projects; and the government’s renewable energy plan is fast-tracking projects to assist in the country’s need for power generation.
STEEL-STRONG
Reinforcing Mesh Solutions (RMS), a leading supplier in the steel mesh and rebar industry, has bounced back successfully after the pandemic, feeling minimal impact. On the hunt for new opportunities, and tendering aggressively, this is a company with a strong outlook that refuses to be weakened by structural challenges in the country.
“We have a good footprint nationally and we are able to assist customers throughout the country with the services that we provide,” says Commercial Manager, Jason Bewick, describing a team of 100 contracted employees working from 11 branches with HQ located in Johannesburg.
“We are primarily a steel reinforcing company and we sell into the construction industry across all sorts of projects from large civil infrastructure to smaller individual jobs. We partner well with concrete and you will always see steel and concrete together. We are strong with precast and hollow floor suppliers and we are leaders in the In-situ fixed concrete works. We have a sister company that handles post tensioning where we use cables so that engineers have different options on slab spans and thicknesses,” he adds.
In the past two decades, RMS has completed more than 100,000 projects around southern Africa and has developed a brand that is strong and trusted in the industry.
“Reinforcing is a strange, un-talked about, unglorified product,” smiles Bewick. “When you’re talking about facades or glazing of buildings, these features are quite impressive. Our product is unassuming but it is needed –it is integral to the building standing up.”
It is easy to drive around South Africa and pass projects where RMS work has been critical. The company has completed bridges, wastewater treatment works and reservoirs, wind and solar farms, tunnels, high-rise buildings, suburb developments, housing projects, staircases, and
REINFORCING & MESH SOLUTIONS
smaller home improvement projects.
“For want of a better phrase, we handle the skeleton that gets buried in concrete,” says Bewick.
Like many in construction, the firm was forced to temporarily close in April 2020 but this was short-lived as RMS – highlighted as a key contributor to major projects – was given special license to continue its work. Steel wire mesh and rebar are used to support structural works, providing tensile strength and protecting against high pressure forces. Often required in buildings, bridges, roads and other high-traffic projects, the steel work that knits concrete together is essential. For this reason, getting the company back on site was crucial in reigniting projects in the first half of 2020.
‘WE WERE FORTUNATE’
“We were able to get back to work in the first week of May as we fell into the critical services category with our projects critical to
infrastructure,” remembers Bewick.
“We were fortunate as we had a number of projects prior to the pandemic and they needed to continue,” he adds.
By early 2021, there was a slowdown as the impact of slack decision making and sluggish contract awarding began to bite. RMS realised indecision from clients, and investments became much more onerous than before. “Many people were migrating away from commercial buildings. There was an oversupply of stock and it took some time for industry to understand what was happening with the reduction in demand for office space, but an increase in demand for distribution and warehousing facilities,” says Bewick.
Thankfully, the company again relied on a strong pipeline, built up over a long period, and backed by a robust reputation. RMS’ industry standing is also helping it to build a future pipeline as important projects are, slowly, given the go ahead.
INDUSTRY FOCUS: CONSTRUCTION
// WE DO HAVE CHALLENGES AHEAD BOTH AS A STEEL INDUSTRY AND A CONSTRUCTION INDUSTRY, BUT WE REMAIN CONFIDENT IN OUR CAPABILITIES //
“Data centres are coming online and, more recently with the power issues we face, we are seeing power generation projects come through, although we will only see the work in the next 12-18 months. 2021 was a tough year with the volume of work down, demand down, but competition still there so margins were under pressure,” details Bewick.
“Things started to change in the third quarter of 2021, with more positive news coming through. The cost of material has escalated tremendously with infrastructure
being a buzz word, but we see light at the end of the tunnel. The struggle is around power. Not so much on our level with the manufacturing but on an industrial scale with steel mills needing massive amounts of power that cannot be provided by Eskom. Then there are transport costs which are rising and that will impact the customer. We do have challenges ahead both as a steel industry and a construction industry, but we remain confident in our capabilities.”
LANDMARK PORTFOLIO
Able to cite some of South Africa’s landmark buildings as case studies, RMS can prove its product and knowledge. Ford, Capitec, Radisson Hotels and more major international brands are all end users of projects completed by RMS.
“We have recently been awarded a contract for an extension at the South Africa Reserve Bank in Pretoria which is a big project. There are a lot of tenders on road projects that we are still waiting to secure – this has been slightly delayed by the weather, especially in KZN along the N2 and N3 corridor.
“There are some projects in Cape Town that we are busy with including Harbour Arch in the Foreshore, phase one of six across a R3.7 billion project.
“There is a big buzz around wind and solar farms at the moment with bids being awarded to contractors and suppliers. There are a number of good tenders that we are busy with right now that we are confident in securing but are not over the line just yet,” explains Bewick.
The Harbour Arch project is particularly exciting, headed by Amdec and following the model rolled out at the Melrose Arch precinct, this site in Cape Town will eventually be home to six new high-rise buildings, creating 200,000m2 of usable space. For RMS, this presents a significant opportunity to take part in the modernising and updating of public space in Cape Town, strengthening through steel, ensuring that future generations
will enjoy this brilliant new space.
Further from home, RMS believes there is significant opportunity for it to add value as projects on the continent continue to be rolled out. Across mining, infrastructure, transport, retail, technology, and much more, development is being pushed hard in countries with a good economic outlook. ArcelorMittal has a strong presence up the eastern flank of southern Africa, and European companies thrive along the western side of the continent, especially in francophone nations where many deals are done in Euros. But across southern nations – Namibia, Botswana, Zimbabwe, Zambia, Mozambique, Lesotho, eSwatini, and South Africa – there are openings for strong local players. Already active in some markets, RMS has the credentials to work further in the continental market and is happy to explore opportunities as they arise.
“We do export into Lesotho via Bloemfontein, we export into eSwatini via Nelspruit, and we export in Mozambique via Nelspruit. We sell into Namibia via merchants. We are not in Botswana or Zimbabwe but we are looking at selling upwards north through the Musina corridor into Zimbabwe and onto Zambia,” says Bewick
Opening new horizons and exploring opportunities across borders will help RMS to further bolster its offering as it looks to restore full capacity after the Covid slowdown.
“We are going through a transition where we are trying to grow and get capacity back into the company after two years of depression as a result of Covid. We are trying to pass on knowledge by employing from within and bring people up through the ranks,” says Bewick.
FUTURE PROOFED
ISO 9001, 14001, 45001 certified and a Level 1 BBBEE contributor, RMS has all the ingredients for further success. Strong partnerships with
Jason Bewick, Commercial Manager
REINFORCING & MESH SOLUTIONS
5th Mountain Networks (Pty) Ltd specialises in “Managed Secure SD-WAN as a Service” with our Halo suite of products.
We are continuously perfecting Managed Secure SD-WAN as a Service by turning legacy networks into “Great Networks”
Increased bandwidth, security, visibility, availability and control whilst substantially decreasing costs!
Tel +27 10 100 3639 | sales@5thmountain.co.za | www.5thmountain.co.za
the country’s main steel businesses have been developed and so - even in a tough trading environment with steel imports often more attractive than local supply – the company has ben able to consistently supply quality to clients despite challenges.
“Generally in South Africa, we are serviced by five steel mills that service the steel industry in total,” details Bewick. “Steel reinforcing is only a small percentage of the total product. The mills use volume and low margin to sell into the reinforcing market and likewise that is our model into the contractors. We are wellsupplied currently by local companies who source successfully but we have tracked import prices for years. Right now, our ability to buy has diminished somewhat because of currency price against the Euro or Dollar. There are
also import tariffs to consider. The war in Ukraine has also tremendously impacted countries in that region to sell rebar into the world markets.”
As more projects are rolled out nationally, RMS will lean on its longstanding relationships to provide its recognised level of delivery and quality. The company is perfectly positioned and, unlike others who were not able to withstand the Covid slowdown, RMS is embracing its position as the market leader in reinforcing steel and welded mesh in southern Africa.
“Not much has changed in evolution of building materials. Cement, stone, sand, and steel, with brickwork – that is our game,” smiles Bewick.
“We are owned by WBHO, we enjoy Billion Rand turnover per annum, and we work with some of the biggest construction companies in the region.
“We have shown growth and we do see potential growth in the future. We are in a tough spot as a country and as a construction industry but I think we are in a position to gain great benefit from the work that is to come. I see a lot of positive things coming through and we have to be patient and put ourselves in the position to realise opportunity,” he concludes.
Right now – when it is sorely needed – RMS can promise strength, certainty, and quality. As South Africa’s infrastructure continues to develop, this is a business that will be central in the biggest projects.
SANJI ELECTRONICS
Secure Sanji Posts
PRODUCTION: James Davey
Despite major challenges for all businesses over the past 24 months, Sanji Electronics – South Africa’s leading automotive electronic security and accessory organisation – has achieved significant growth. According to Managing Director Steve Easton, the company is busy with an exciting new product alongside a major manufacturer which could further revolutionise vehicle security where it is sorely needed. “Intelligence is a matter of thinking and Sanji do this exceptionally well,” the company states.
INDUSTRY FOCUS: AUTOMOTIVE
//A sickening report was released recently, highlighting South Africa’s eye watering crime statistics and how, unfortunately, they continue to rise. The country’s criminals continue to become more creative and, thanks to wider macroeconomic conditions, more are turning to unscrupulous activity to get by. Automotive crime continues to blight the country, which has gained an international reputation as one where auto-related offence is a norm.
The South African Police Service (SAPS) reported in August that between April and June 2022, more than 5800 hijackings occurred around SA – a 14% increase on the previous year and an average of one car stolen every 22 minutes. In 2022, South Africans are still being told to consider whether they should pull into their own driveway, and being advised to keep an eye out for tails and suspect behaviour in the neighbourhood around their homes.
As manufacturers have installed new systems, such as push to start buttons, crooks have
adapted, becoming increasingly technologically advanced. Jammers and signal blockers are all-to-easy to access, and so many are unaware of the threats they are faced with.
Thankfully, Sanji Electronics continues to provide industry-leading vehicle security systems and associated electronic equipment to make the country’s automotive industry safer and more reliable. A designer, manufacturer,
and seller of advanced vehicular security products, Sanji often installs direct into units along the assembly line. A strong partnership with Isuzu, as well as similar arrangements with many other manufacturers, has helped build the company into a powerhouse.
In 2020, Managing Director Steve Easton told Enterprise Africa that the company was thriving and searching for consistent double-digit year-on-
year growth. In 2021, he confirmed that, through diversification and hard work, the company had achieved this and was primed for further growth.
Never wanting to use the challenge of the pandemic as an excuse, Easton has always been clear that Sanji would do all it could to serve clients with the highest level of quality, despite tough circumstances. This dedication to excellence has served the company well, with Sanji booming during 2020 while others struggled.
Now, this impressive Kyalamibased business is continuing to display dominance, as Easton explains.
“Last time, we had a very good year in the middle of the Covid situation. Last year, we had an even better year and we exceeded all of our expectations –we are thrilled and we are moving in the right direction,” he tells Enterprise Africa. “All the building blocks that have been put in place over the past few years are starting to fall into place and we are in a very good space.”
CUSTOMER COMES FIRST
Asked how the company has managed to continue growing in such a harsh business climate, Easton is clear that an everlasting focus on customer experience is essential.
“It goes back to our original principals of giving the best customer service. As I have mentioned before, we are not a family business but that is how we operate. We have a fantastic team and that mindset goes right through the business,” he says, talking of a team of around 60 that covers three offices.
“We all know that the customer comes first, we go to the ends of the earth for our customers and that is what has been a turning point. For a lot of companies, when times are tough they quickly cut support. We have kept our support as our technical knowledge is paramount to our success. We work hard, we are always developing, and we move with the times, but our support, customer service, and quality is second to none. That is the
SANJI ELECTRONICS
// OUR SUPPORT, CUSTOMER SERVICE, AND QUALITY IS SECOND TO NONE. THAT IS THE REASON WE ARE GROWING YEAR ON YEAR //
reason we are growing year on year.”
The wider automotive industry, as well as its feed-in sectors, has struggled thanks to a shortage in components, logistical challenges, and an unpredictable demand problem. A global semiconductor chip shortage continues to wreak havoc across the sector, and adverse weather and IT issues at ports contributed in South Africa. But in August 2022, the country registered more than 43,500 new vehicles – a 30.9% year-on-year increase (albeit from a low base). Sanji Electronics did not entirely negate the challenges, but it is strongly positioned to take advantage of a buoyant local market.
“The international component shortage has affected us, like any electronic manufacturing company,” says Easton. “But we are fortunate enough that our team saw it coming and so we put a lot of steps in place with our stockholding growing by
three times. We bought up stock as it was being released in order to not let our customers down – that made a huge difference in our growth as we were always able to supply.
“There were delays in the supply chain,” he adds. “We had a component that used to be a 32-35 day lead time but suddenly it became 50 weeks. There were opportunities to buy components online at a premium and we did that, buying up whatever we could to be sure that we kept the wheel turning. We got into a situation where we were able to sell components to companies because we didn’t need all the raw materials. It’s not an ideal situation but it keeps the factory running and, more importantly, keeps our customer supplied and happy. The bottom line is that we have delivered for our customers and we have exceeded their expectations – our OEM clients and our contract manufacturers, we haven’t let anyone
INDUSTRY FOCUS: AUTOMOTIVE
down. At the end of 2021, the factory was working seven days a week to ensure we met demand – that is what we will do to ensure a happy customer.”
Following the success of the company’s ZX JamAlert, ZX90-V anti-hijack system, Journey Organizer app, and more, Sanji is busy with new products that have been a long time in the making.
ELECTROMECHANICAL ARM
“We have a number of facets in the business; a manufacturing side, a vehicle security side, and accessories. We have added another tier to the business which is around electromechanical. In South Africa, big double-cab bakkies are popular but the tailgate doesn’t have a lock, or they have a key which must be used to manually lock. We have automated that process with advanced security, giving the convenience. With these vehicles, there is also a canopy that goes over the back of the bakkie.
We have developed a canopy lock, linked to the vehicle’s remote control. Orders have just started going out this month. We are busy with a major motor manufacturer in South Africa where we hope to make this a standard on their vehicles. It’s an exciting time and an exciting new venture that we have put a lot of R&D into.”
For South Africans, the bakkie is a popular choice with Toyota, Ford, Nissan, VW, Hyundai, Isuzu, and other OEMs producing popular models that are among the country’s mostwanted vehicles. As manufacturers look for every opportunity bring the cost down for the end user, new prospects are presented for Sanji, and this keeps the innovative team busy.
“You have to develop each manufacturer separately,” says Easton. “We have started with Isuzu, we are growing with other manufactures and we hope to replicate what we do there and fit on the line.
“We are always looking for
Steve Easton, Managing Director
opportunities to go into new areas. Right now, we are looking at various things but we are still busy with this electromechanical project which has been very big for us. It’s just started going to market and we need to see it through as it is different for all the manufacturers. That will keep us busy for this financial year.”
Further down the line, the future becomes more difficult to predict at Sanji, but Easton is concentrating on consistent year-on-year growth while delivering quality in the automotive space. To date, this has been achieved and the company has a successful recipe for success.
“We will always stay in our lane. We have burnt our fingers by looking at things that we are not familiar with,” he says. “We will stick to what we know. We know the motor industry very well. There will be more growth in this space. We always want to enhance our product range to complement the motor industry. There are a lot of new cars coming through in South Africa and, because of the ludicrous cost, they are stripping out all of the niceties and that leaves big opportunities for us.”
CAPACITY EXPANSION?
A passionate leader, with a desire to grow sustainably, Easton is preparing for capacity improvements but is conscious of the unpredictable nature of the commercial environment both globally and at home in South Africa.
“Unemployment in SA is crazy. Over
// IF WE WANT TO CHANGE DIRECTION, WE DON’T HAVE TO GO THROUGH BOARD MEETINGS. WE MAKE DECISIONS QUICKLY AND THAT IS WHY WE ARE SUCCESSFUL //
Fatton Ariva is a privately owned logistics company operating in South Africa, providing highly personalised, tailor made logistics solutions to South African Importers and Exporters.
We know that every Importer and Exporter has their own specific needs and we pride ourselves in delivering individual solutions to match those needs.
Customs Brokerage
International Airfreight Forwarding
International Oceanfreight Forwarding
International Courier Services
Overborder Roadfreight
the last year we have managed to create quite a few new jobs and bring in new people,” he highlights. “We are getting to the point where we are quoting on big new projects which are yet to be confirmed but if we do get them we will definitely be expanding our factory which will create even more jobs.”
But even with this further positivity on the horizon, there remains caution and a commitment to nimble business principles.
“Where our country is at the moment, it is hard to look beyond the next five years,” says Easton. “There should be vast improvements, but who knows. We are taking small steps and we are confident about the next two years, but beyond that, we are watching.”
He emphasises the company’s speed and ability to tackle issues quickly as they arise as a real differentiator and
Domestic Distribution
Warehousing Packing
Customs Compliance/Tariff Classification
International Network
something which allows for a mitigation against long-term economic risks.
“The way we run this business, we are quick to react. There is no bureaucracy,” he verifies. “If we want to change direction, we don’t have to go through multiple board meetings. We make decisions quickly and that is why we are successful. For example, a customer came to us recently and asked us to upgrade software on one of our older products. They had the new software in five days. We react quickly and if we can technically do it and it makes financial sense we do it.”
Inventive, pioneering, and truly knowledgeable of the industry in which it operates, Sanji Electronics has grown to become a trusted partner of motorists and OEMs in South Africa. As vehicle crime challenges become more sophisticated, Sanji’s offerings grow
in importance. Proven on the road, these are no gimmicks. Manufactured to ISO9001 quality standards and thoroughly tested, products from Sanji protect and safeguard, while making life on the tarmac easier.
“The customer comes first, that has always been the case. If there is a problem, we deal with it, we don’t run away from it. Things change quickly and our reaction time is why we have grown. What we do we do well, and we look after our people. It is unusual for people to leave this business; we have a happy team and that goes into the product that goes out of the door, creating a good experience for our customers,” Easton concludes.
Carlo Klopper, CEO
Modern Tech Ignites New Growth Story
PRODUCTION: Christina Allcock
“We protect lives and assets through technology,” says Carlo Klopper, CEO of FS Systems – industry leader in fire and life safety and electronic security solutions. After 50 years in business, this is a company still on a growth path thanks to quality delivery and internationally-recognised product range.
INDUSTRY FOCUS: SECURITY
//Fire remains one of the biggest threats to business, property, and life. For expert South African tech business, FS Systems; even after 50 years in the game, the risks from fire are still very real. Too many commercial properties still go unprotected or under protected, and stories of fire causing misery remain too common – the reports of fire at Cape Town’s parliament buildings earlier in the year were sadly not isolated.
Insurers face enormous claims every year for fire related disruption. Whether it is destroyed stock in a warehouse, business interruption from office fire, infrastructure destruction in a hospital or school, or even burning fields in a vineyard – without proper protection, insurers will dispute claims and major business interruption is the result. According to global insurer Allianz, fire and explosion are the top cause of loss (by total value) in South Africa. Unfortunately, a report from Discovery suggests claims from fire incidents are increasing. The report cites Fire Protection Association of South Africa research, showing a 68% rise in the number of reported
fires between 2011 and 2020.
For FS Systems – a growing and diversifying business – fire protection through the optimisation of technology is essential for a modern business. Bringing end-to-end life security and electronic security solutions, this Cape Town-based business is doing everything possible to protect people and assets. Its expertise has been demonstrated at the Baxter Theatre
Centre in Cape Town, on UCT campus, where an upgrade to existing infrastructure was required, in a short period of time, without interrupting rehearsals for an important upcoming international show. The goal was to meet SANS Standards with new fire detection, public address system, emergency lighting, and all associated engineering. Also, at a globallyrelevant gold mine in West Africa, FS Systems was called on to install new
fire detection and gas suppression systems to satisfy risk management and business continuity plans.
FAST GROWING VERTICAL
Last year, the company celebrated its 50th anniversary while introducing an exciting new cloud-driven division – FS Connect. Alongside strong growth across the group, this digital-focussed arm is experiencing a ramp up in demand as its solutions go hand-in-hand with the modern built environment.
“FS Connect has done really well and we are seeing things return to more of a normal situation post-Covid, and that is really encouraging,” says CEO Carlo Klopper. “Through Covid and the change in how people work and engage, we have seen growth in the telecommunications industry and that is a market that FS Connect serves with innovative cloud technologies. We have been serving a fast-growing vertical in the business and it is going well. We have seen a big acceptance of cloudbased technologies from end users, and more are happy to move infrastructure, clients, and service environments
into the cloud. Our solution set is very much focussed on that, so it has been good for the business. The team in FS Connect has grown and they have moved into new premises.”
FS Connect aims to lead in the electronic fire detection and security industry, fuelled by advances in cloud computing and services, Internet of Things (IoT), Artificial Intelligence, and video analytics.
“We’ve had a great year and we are definitely still going from strength to strength. We continue to bring phenomenal products to market, through great processes and people. We are solving real business problems for our client base,” says Klopper.
He adds that significant success on a recent project with a leading FMCG business highlights the range of solutions available through FS Connect and the ability of the company to deliver through pioneering tech-based systems.
“We are digitising a big part of their delivery supply chain. They have drivers that do deliveries to various locations throughout South Africa.”
In the past, for these deliveries to happen, there had to be someone on
site, there were physical keys required for gates and it was a cumbersome compliance and control system.
“We have changed of the delivery depots to Bluetooth enabled digital locks. We have helped the company through change management training to get all the drivers to have a company provided smartphone and app, and they now open the delivery cages autonomously, with everything synced to route planning with audit trails and visual logs through the whole process. That was great in enabling business wins for the customer as well as enabling the drivers on a digitisation journey,” highlights Klopper.
INCREASING FOOTPRINT
As much capital investment was halted, delayed or reconsidered as a result of the pandemic, FS Systems was busy servicing clients, providing some of the world’s best solutions in unique and individual packages. As the environment returns to a more stable situation, FS Systems continues to realise positivity.
“We are growing and increasing our footprint but it has taken some time to get into that now that the market is
INDUSTRY
FOCUS: SECURITY
// IN OUR INTERNATIONAL BUSINESS, WE SEE CONTINUOUS GROWTH IN THE MINING SECTOR, ESPECIALLY AROUND INDUSTRIAL FIRE DETECTION AND FIRE SUPPRESSION SOLUTION SETS //
getting back to normal,” admits Klopper. “Company size has slightly increased, we have taken on projects in some additional countries in sub-Saharan Africa, and we are looking to grow and expand on that while we wait for the
continental markets to return to normal.”
The group make up consists of FS Systems in South Africa (offices in Cape Town and Johannesburg), FS Connect – centred around digital solutions, FS International which takes care of projects outside of SA (with a focus on West Africa), and a division which explores opportunities in Latin America.
“In our international business, we see continuous growth in the mining sector, especially around industrial fire detection and fire suppression solution sets. We are embarking on a few mega projects that we are excited about in that space,” smiles Klopper.
The technology market around fire and life safety products is busy and competitive. The industry is set to grow by 8.8% between 2022 and 2029. Many companies remain singular in their focus, providing only installation or only
GALLAGHER - SECURING MINING SITES TO MINIMISE RISK
product sales. But for most businesses looking for a holistic solution, it is now essential for a partner to have knowledge up and down the value chain, and the ability to bring this complicated but vital offering under one roof. FS Systems is a turnkey solutions provider and not simply a sales business. Relationships with clients are long lasting and solutions encompass more than just one piece of technology.
“We see ourselves helping with the solution set up, product sourcing, importation, distribution, implementation, support, and by taking the whole value chain, there are a lot of ways to deliver those solutions quite efficiently,” says Klopper, an industry veteran, formerly of UTC Fire & Security and GE Security.
Continues on page 40
Mining companies face a number of risks. With numerous staff to protect, heavy machinery in operation, and highrisk activities taking place, managing risk and ensuring compliance is essential. An integrated security solution, such as Gallagher Command Centre, supports mining sites to do all this and more from one central platform, simplifying operations and creating safer sites.
Compliance-driven access control ensures everyone on site is authorised to be there and has completed any necessary trainings and inductions or holds the correct competencies to be in a particular area. Access control also ensures employees are fit for work by monitoring fatigue and exposure, and enforcing random drug and alcohol checks.
Gallagher’s Regulated Zones functionality can monitor the time an employee has worked on a shift, the recovery time between an employee’s shifts, and the number of consecutive shifts an employee has worked, raising an alarm if an employee exceeds any limits. Proactive monitoring through Regulated Zones supports sites to reduce risk by preventing accidents with vehicles or machinery and slow decision-making due to work-related fatigue.
Gallagher’s Random Selection functionality ensures people are fit for work by randomly selecting employees, visitors, and contractors for checks – including drug and alcohol testing, safety gear checks, or health checks – on entering or exiting the mine. Integrated access control and breathalysers, such as Alcolizer, enforce a site’s no alcohol policy at the door, with access automatically denied if alcohol is detected and the results recorded in the database for historical reporting.
Personnel location monitoring through Gallagher’s Tag Boards feature ensures the safety of staff, contractors, and visitors, providing a real-time view of where people are on site. In the event of an emergency, such as a fire, natural disaster, or security breach, or if any planned hazardous activity is taking place on site, Tag Boards supports a site to know who is in a particular area at any given time. Gallagher’s Broadcast Notifications feature also supports sites in an emergency with the ability to send mass notifications relaying important information to those on site.
Visit security.gallagher.com to find out more about Gallagher’s risk management and health and safety compliance solutions, or contact Gallagher’s local in-market team at sales.za@gallagher.com or +27 11 974 4740.
INDUSTRY FOCUS: SECURITY
Continued from page 38
“We believe we bring the best products and we spend a lot of time on R&D, evaluating solutions, and forming deep partnerships around the products we bring to market.
“We have a deep focus on expertise and a lot of credibility being in business for more than 50 years. We also have that depth of expertise that allows us to understand client’s needs and bring solutions versus just bringing product – that sets us apart as we bring value.”
VERTICAL FOCUS
Centred around key vertical markets, FS Systems has built a strong knowledge base in key sectors including education, mining, hospitality, healthcare, logistics, and banking. The company has proven case studies where the correct technical solution has been applied in a way that suits the environment, ultimately resulting in efficiency but overall, protection.
“We are focussing on a few fast-growing vertical markets including mining, telecoms, and logistics which we see as industries in which we can provide solutions that aid businesses in becoming
more efficient, safer, and smarter.
“We have some legacy customers that we continue servicing but we see our customers evolving. They keep the legacy products but they are migrating to more digital, cloud-based solutions and that is great that we can take those customers on that journey. We have multi-year relationships and customers are looking more for value and a solutions partner that can help them on this journey rather than just someone who sources products,” states Klopper.
Cathrine Herwill, Marketing & Sales Enablement Manager at FS Systems reiterates the importance of understanding customer requirements to create a relevant solution.
“A lot of what we do right now with presales is digital and involves working with clients to understand what arrangements they have in place currently and what we can offer to add value,” she says. “A lot of the fire and life safety solutions that we offer are custom designed so there is not a one-size fits all. This is where a face-to-face visit is important, and we can then begin to understand more about the compliancy and laws in each country. There is a lot of interaction but it is all about looking at where we can add value.”
// WE MAKE SURE THERE IS ABILITY FOR LONGEVITY IN THE RELATIONSHIP AND WE FOCUS ON THOSE THAT HAVE A BIG SPEND ON R&D SO THAT WE CAN BE INNOVATIVE TOGETHER //
Ensuring the absolute peak performance from products is essential in such an important sector. FS Systems takes no risks and partners only with the world’s finest organisations including Gallagher – which recently launched a new HALO Smart Sensor and Command Centre software - and many more. The cornerstone in these relationships is quality above price.
“We see our relationship with our key product suppliers equal in importance to the relationships we have with our clients,” details Klopper. “It is a very important part of our business and we are very selective when
FS SYSTEMS
bringing new products onboard. We spend a lot of time understanding the synergies between how we operate and how the OEMs operate. We make sure there is ability for longevity in the relationship and we focus on those that have a big spend on R&D so that we can be innovative together.”
Asked if the cost of bringing the world’s best tech results in pricing that is unattractive to customers, Klopper is keen to highlight value and the company’s turnkey solution provision.
“We need to provide value first and foremost. When we bring value, efficiency, and optimisation, the input cost becomes less important as the net result is positive. If we can drive big efficiency but at higher cost, our clients are likely to accept that. We see the industry moving more into vertical value chain integration. We are taking more of that value chain and that allows us to bring a more holistic product set to market at a value price without thousands of intermediaries in the process.”
Partnering with industry-leading tech providers is not about progress for the sake of progress. FS Systems is keen on products that solve problems in a more efficient manner than before – for example with the Motorola Solutions Safety Reimagined portfolio - and this can be through automation or connectivity. Products must be flexible enough to be utilised across FS Systems’ different verticals, but must remain high-performing in any situation.
“Our core product sets are there – how we take them to market is dependent on the vertical. How we customise the product and applications is also very vertical specific. We bring a broad solution as we learn more, but the product set is something we are very focused on as we are very selective over who we partner with,” explains Klopper.
CHANGE IS CONSTANT
Going forward, Klopper has always been clear on the future goal of FS Systems. During the 50-year anniversary
celebrations he was steadfast in his commitment to further growth but always with quality delivery as a catalyst. This message remains the same today and ambition for ongoing improvement has not diminished.
“We want to be the leader in protecting lives and assets through technology. We want to be the industry leader in sub-Saharan Africa and other emerging markets. We are on a good journey and we see ourselves as the industry leader in the verticals that we play in,” he says.
Despite global and local economic uncertainty and supply chain challenges, the ongoing threat of fire and security incidents is incessant and requires new ideas to shield against negative fallout. FS Systems stands tall and strong in this battle and will continue to serve clients with the highest quality products and service, industry-leading knowledge, and robust foundations.
“We remain positive,” states Klopper. “The one thing we have all taken from the past two years is that change is a constant. In a business environment, there is no such thing
as certainty. We are adaptive and the team has shown tremendous resilience through Covid and through the uncertainty. We take a lot of pride and confidence in the fact that our team is resilient, confident, innovative, and adaptive. We see more and more need for the type of solutions we bring to the market and we see great technology advances through AI, biometrics, deep learning, cloud computing – these are all innovations that spill into our industry and what we take to market. We have a great client-base, great supplier base, and we are very positive.
“We are doing the right things and we are growing, so that is great, especially in this environment. We have done well in difficult environments so I am very proud,” he concludes.
There is no tool to completely eliminate fire or security hazards from a company risk profile but partnering with FS Systems is a definite and obvious action that can protect people, property and assets.
COLUMBIT
Commitment to Sound Values Seals Columbit’s Industry Top Spot
PRODUCTION: Jamie Waters
By always working with integrity and honesty, delivering quality and innovation, and supporting clients with industry-leading service, Columbit continues to grow despite tough conditions. According to GM Werner Rautenbach, the company relies on a strong employee base and outstanding product range to delight clients.
INDUSTRY FOCUS: TECHNOLOGY
//For southern Africa’s food producers, industry and macro-economic conditions are beginning to bite. The war in Ukraine, crippling power cuts, adverse weather conditions, challenging currency pricing conditions, and increasing regulatory requirements make for a difficult market. Mix in an inflation storm and the lingering economic effects of the pandemic, and consumer wallets are tighter than ever. Challenged supply alongside lacking disposable income make for a crunch in the market.
A well-developed and technologically advanced food processing sector requires continual servicing from an equipment perspective and, as many companies look more at input costs, it pays to partner with the most experienced and knowledgeable.
In order to process, package, and supply food and beverage products at volume, with high quality, at speed, and in line with regulations, high-spec machinery and automated systems are vital. Technology continues to change this market, but for companies like
Columbit – a leading provider of the world’s best equipment – staying ahead of the game is the bread and butter.
Established in South Africa in 1938 by German immigrant Ernest Zeh, the introduction of European technology to Africa has always been a cornerstone of the business. 84 years later and Columbit is still bringing world-class technology from Europe and installing at food and beverage processing businesses across southern Africa.
Importantly, the solutions provided by Columbit are helping users to lower input costs and make savings through various innovative technologies. Right now, this is extremely attractive for embattled organisations.
SPECIALISTS
“All of our machines are imported from Europe, mostly Germany and Italy and we specialise in meat and beverages, with a specific focus on wine. Our Bettcher range of tools are manufactured in the USA,” says GM Werner Rautenbach.
The company boasts a product list from suppliers for the meat processing sector including Eberhardt, Weber,
Gunther, Fessmann, Domino, Polyclip, Margurit, Laska and more. These are the leaders in their specific field.
Suppliers for beverages are all Italian, with our key partners being TMG, MBF, Makro, Nortan and Ragazzini.
From processing through sorting and packing to distribution, the machines installed by Columbit come with ongoing support and maintenance.
“In our game, you have to be flexible and constantly aware of the market requirements. We continuously evaluate our offering and if we realise something that the market doesn’t need any more then we will re-consider such equipment and rather focus on products required by our customers.” explains Rautenbach. “As the demand changes, we will search for new products that can satisfy the requirements, on the other hand we have a few products that we have been promoting for many years since these types of technology have been in high demand and we foresee that it will remain like that well into the future. With Polyclip for example, Columbit is the distributor who have been representing Polyclip for the longest period of time, in fact
the relationship between Columbit and Polyclip started long before I was born - it is an achievement that we are very proud of. There are a number of our agencies where Columbit started a relationship with the supplier shortly after they formed the company and after many years Columbit is the only company who represented them. This stable relation with our suppliers gives our customers piece of mind as they know it is a trustworthy supplier.”
Whether it’s slicing, pressing, mincing, injecting, packing or a more indirect input, clients of Columbit know they will get the very best tool for the job and will have first-class after sales service. By combining the best people with unrivalled technology, Columbit has found its recipe for success by sticking to its vision, mission, and core values.
thanks to a longlist of clients with an installed base around the country. Maintenance and servicing endured and some sales continued to roll in as the company’s listed as critical across the food sector worked as normal.
“We believe we have a good team and without our people we can’t do anything. We are fortunate to have a very strong and motivated team who tackle the market well. We don’t try to go overboard – we try to do the basics right and always deliver customer service at the highest level.
Asked about the bounce back, Rautenbach has been positively surprised. “It has been better than we expected,” he says.
“However, especially on the wine side in South Africa, for some time the production and packaging of wine was not allowed, and sales and
industry coming to a standstill – that was a tough time. Being diversified, people still needed to buy food and meat and that helped us. The industry is quite resilient and the sales have returned quite quickly so we are quite satisfied with how we performed through such a difficult time.
“We are fortunate as we didn’t need to reduce our headcount or anything that could affect our service delivery negatively. We made adjustments and we limited expenses, but we were fortunate that we did
INDUSTRY FOCUS: TECHNOLOGY
not need cut staff numbers as that is the last thing we ever want to do.”
With millions of formal sector jobs cut in South Africa during 2020, to commit to employees and a strong presence in the market is a statement of intent. A core value for Columbit is the retention and promotion of honesty and integrity within the company and it is employees that deliver this culture. Across the entire geographic market served by the business, even after the pandemic, this value is core in the Columbit offering.
“We have meat and beverage processing equipment for which we cover most of southern Africa. We have customers in Angola, Namibia, Botswana, Zimbabwe, Malawi, Kenya, Zambia, and we cover all areas,” says Rautenbach, who has been with the business for more than two decades.
80 people serve clients with the company’s other core values: Quality,
Innovation and Service in order to assist with the issue of efficiency. For the wine industry, quality is non-negotiable, and in food processing innovation around freshness and longevity is vital.
QUALITY & INNOVATION
“The customers’ requirements to improve productivity with rising input costs is an important factor,” details Rautenbach. “Everyone needs to increase productivity and lower costs, this forms an important part when we consider what to offer our clients. The need to reduce input cost has been a huge motivation for more automation.”
Even from an operational viewpoint, machine suppliers are reimagining composition to ensure maximum efficiency, and Columbit is noticing change.
“High hygiene standards, traceability and food safety is extremely important when producing food,
fortunately with such good machine suppliers these requirements are high on their priority list and our machine suppliers make such a huge effort ensuring their machines are easy cleaning with access to all the important areas to be cleaned.” says Rautenbach.
The country’s big companies and multinational corporates employ some 75% of the food processing industry’s people, and account for more than 90% of the industry. These are the companies that rely on top class equipment, that is well serviced, efficiently designed, and drives productivity.
“The environment has been characterised by consistent pressure to reduce input costs,” reiterates Rautenbach.
In the wine industry - where Columbit is well-known across the Western Cape thanks to its range of corks, capsules, wine barrels and screwcaps – there is again strong demand for a partner with such a track record and a clear focus on quality.
“Locally Columbit add value to the range of consumable products. We partnered with a local screw cap producer where Columbit receive the plain screwcap and in our factory and print the customers unique design on the screw cap. Further, we have a factory that produces capsules that cover the wine cork. We obtain the aluminium material and manufacture the capsules here in Cape Town for the industry. In our cork treatment facility, we complete final treatment, printing and top branding on imported corks.” says Rautenbach, highlighting the importance of the company’s involvement in an industry worth R55 billion to the Western and Northern Cape economies.
WIDENING SCOPE
Going forward, Columbit is excited about further success as the impact of the pandemic lessens and a localisation programme continues to encourage food processing businesses to thrive. By bringing in more quality
Bacon in top shape!
equipment through an expanding range of contacts, the company will be able to exploit new opportunities.
“We are very fortunate that we were able to reach an agreement with a machine manufacturer to represent them in our area. We are of the opinion that will give us some good growth and widen our scope of supply for our customers. This will definitely help to give clients a better offering and we have made good progress already.
“We have a number of other
ideas and initiatives that we are busy with behind the scenes but it is too early to talk about these just yet,” Rautenbach teases.
Currently self-labelled ‘large enough to make a difference but small enough to care’, Columbit deals with clients with flexibility but acts as an extension of its suppliers. Leaning on the commitment and expertise of its staff while delighting customers with each interaction, this is a business perfectly positioned for further growth as the industries it serves search for quality.
“We have great inhouse technical teams who are regularly trained by the machine suppliers. Columbit makes significant investments ensuring our team of technicians are up to date with the technology we offer. We handle the lifecycle of the product, with spare parts
and repairs, keeping the equipment in top condition with original spare parts from the manufacturers.
“A good product combined with a good back up service is a winning recipe,” concludes Rautenbach.
Something which will not change is the commitment to sound values, only enhancing an already sterling reputation. Columbit sits proudly atop the food processing and wine equipment industry, and it would take something rather drastic to change that anytime soon.
Transforming the African Out-of-Home Advertising Landscape
PRODUCTION: James Davey
Innovators since 1964, family-owned JCDecaux is the top outdoor advertising company worldwide and present in 19 countries across Africa, with dedicated offices in each and the broadest range of digital and static advertising solutions. Early adoption of technological advancements continues to result in pioneering, client-centred advertising offerings, with a new MD at the helm set on keeping the company turning heads across Africa.
INDUSTRY FOCUS: MARKETING
//A whole host of factors; among them growing urbanisation, increasing digitisation and accelerating technological innovation within the sector; are conspiring to result in the need of advertising which communicates faster, more effectively and with greater flexibility, and which in turn increasingly benefits from a more reliable accountability.
Enabling brands to reach a mass audience rapidly and consistently, Out-of-Home (OOH) advertising encompasses digital and static panels carrying advertising across every urban outdoor environment, and endless and boundless innovation within the medium allows OOH to meet an ever-broader range of communication goals. OOH attracts a higher percentage share of advertising in Africa than in most other global markets, and while television and radio have mostly remained fairly stable with newspapers and print sharply declining, OOH and digital media have, conversely, boomed. Such has been this ascent that
OOH media now accounts for 13% of advertising revenue in the majority of key African markets, and having made a sharp recovery in 2021 in particular from much reduced airport visibility, is projected to expand at a CAGR of 3-6% over the next five years. “Beyond the established strength of rapid broadcast coverage, the growing penetration of the medium in the urban environment has resulted in an ability to offer more tightly targeted messaging,” JCDecaux says of OOH’s superior reach and effectiveness as a wealth of devices, methods and channels vie for audiences’ attention.
“OOH remains a key medium that surrounds audiences in their everyday environment; it can reach them while they are close to the point of sale, and when they are more receptive and are less distracted by other media.”
BEACON VALUES
JCDecaux Africa is the number one player in OOH on the continent, offering almost 30,000 advertising panels
and priding itself on quality service, innovation and insights. “At the heart of JCDecaux’s growth trajectory, across over 80 countries internationally,” it expounds, “is a commitment to four core values: outstanding design, flawless quality, cutting edge innovation and sustainable development.” These are unshakeable principles which have guided the company almost 60 years, since its launching of the brand new concept and business model of bus shelters financed by advertising,
// OUR MEDIA PROVIDES AN ESTIMATED DAILY REACH OF 400 MILLION CONSUMERS, ALL WITH ONE TURNKEY SOLUTION THROUGH JCDECAUX AFRICA //
subsequently changing the entire face of the industry and of cities worldwide.
“Today our media provides an estimated daily reach of 400 million consumers, all with one turnkey solution through JCDecaux Africa,” the company details. “We are a global player with local relevance; we have a deep respect for local culture and insights, integrating this into our business. JCDecaux continues to look for shared value opportunities, with Africa being a key focus market. We aim to create an environmentally sustainable and socially responsive organisation that understands and knows the African commercial trading environment and landscape.
“Quality and innovation, integrated into our unique economic model, are beacon values for us that place JCDecaux in the process
// QUALITY AND INNOVATION ARE BEACON VALUES FOR US THAT PLACE JCDECAUX IN THE PROCESS OF PERMANENT PROGRESS //
of permanent progress.”
Targeting progress is embedded within every aspect of the business, and the world’s number one outdoor advertising company last month announced the appointment of Lunga Majija into the role of Managing Director for JCDecaux South Africa.
“JCDecaux is synonymous with innovation,” Majija recognises with verve, “and I’m excited to be part of the leadership team responsible for the advancement and development of this amazing organisation.”
Himself a highly accomplished, successful and well-regarded business leader, Majija has accrued extensive
experience in the media industry across the continent, including most recently as Regional Director for JCDecaux Southern Africa, where he held responsibility for defining and implementing business strategy, and as Operations Director for the Middle East and Africa. His new role will see Majija oversee the implementation of the company’s South African business growth strategy by furthering asset digitisation, supporting data by design approach, service delivery and customer excellence to attain corporate sales and profitability objectives.
“I look forward to introducing several initiatives that help monetise
INDUSTRY FOCUS: MARKETING
our Data Solutions offering by delivering greater value and accountability to our customers,” Majija asserts. “I aim to gear the business to leverage market opportunities while addressing diverse trading challenges through operational efficiencies and several business optimisation initiatives. Together with the new talent in business, I hope to strengthen our relationships with customers, industry experts and stakeholders, to position the business as the company of choice in outdoor advertising.”
LASTING IMPRESSIONS
JCDecaux Africa’s entrepreneurial spirit is driven by one overarching purpose, to make cities, transport systems and shopping centres increasingly attractive while meeting challenges like urbanisation and digitalisation that define the 21st century. “As the leader in Out-of-Home advertising,” it declares,
“we are dedicated to giving brands a unique voice and rich market insights by providing messaging platforms throughout the continent, which are of the highest quality and design supported by first-class customer service.”
With the aim of continually innovating to deliver more value to customers through memorable, immersive, and engaging advertising solutions that really resonate, creativity is key, in leaving lasting impressions, promoting sharing and driving consumer action.
“Creative quality is the single biggest driver that explains growth on brand exposure, contributing up to 50% to campaign salience,” reasons a study by data analytics and brand consulting company Kantar, and in a perfect merging of technology with creativity, JCDecaux South Africa has launched a cutting-edge 3D
// AS THE LEADER IN OUT-OF-HOME ADVERTISING, WE ARE DEDICATED TO GIVING BRANDS A UNIQUE VOICE BY PROVIDING MESSAGING PLATFORMS THROUGHOUT THE CONTINENT OF THE HIGHEST QUALITY AND DESIGN //
anamorphic experience for brands and advertisers by activating its 4x8 metre Deep Motion Digital screen at Sandton City shopping centre.
“We are excited about the new creative opportunities our 3D Deep Motion Digital anamorphic display offers brands and advertisers to push the creative boundaries to connect with consumers,” enthused Lélanie Butler, Innovation and Projects Director. “In today’s competitive attention economy, brands and advertisers find it challenging to generate ads and content that retains consumers’ attention to deliver memorable brand and product messaging. Through our 3D Deep Motion Digital
anamorphic displays, we aim to increase engagement and emotional relevance by providing consumers with large colourful creative that can be easily captured and shared instantly.”
JCDecaux Africa has now been delivering premium advertising solutions for over 20 years, and in another iconic first for Such Africa announced its branding of Gautrain buses in partnership with Pixykorner and the LFP Group, traversing a route network covering an estimated 320,000 km per month travelling
through high-net-worth suburbs ranging from Melrose, Gallo Manor, Waterfall, Irene and Hatfield.
“JCDecaux Africa has combined its unique strengths, knowledge and expertise to create a market-leading, innovative Out-of-Home company positioned for growth,” the company sums up. “We plan to continue investing and growing our footprint across the continent, enhancing our existing suite of premium advertising assets, and look forward to further expanding into new environments with diverse static and digital properties across the continent.”
OX DELIVERS
Driving the Path Less Taken
PRODUCTION: Jamie Waters
Francine Uwamahoro, Managing Director for OX Delivers in Rwanda tells Enterprise Africa more about the amazing innovation underway in Africa as this pioneering business looks to build something special, driving opportunity for all emerging markets.
INDUSTRY FOCUS: LOGISTICS
Francine Uwamahoro, Managing Director
//Just 43% of Africa’s roads are paved. 30% of all of the paved roads on the continent are in South Africa. Africa is home to the lowest automobile penetration rate in the world, with an estimated 44 vehicles for every 1000 people. In smaller, less developed, more rural nations, this is a problem. Transport and poverty are linked.
According to the World Bank, more than 50% of people of people who live in extreme poverty live in sub-Saharan Africa, and 70% of people who live in Africa’s rural areas are expected to be unconnected from a transport perspective.
Agriculture is often the industry of choice (or necessity) for employment. In sub-Saharan Africa, more than 53% of formal employment is in the agricultural sector. But often farmers are limited to customers within walking distance. Crops diminish quickly over long distances.
Clearly, there are challenges
to be addressed. For this reason, OX Delivers – an exciting company in the logistics space – has started a pilot in Rwanda using electric vehicles to fill gaps in transport networks and deliver opportunities.
Started in the UK by Managing Director, Simon Davis, OX has raised significant funding to develop and deploy affordable logistics services using the electric OX truck in Africa. Ultimately, the company is planning for coverage across the world’s emerging markets, driving down costs with an inexpensive model that has minimal carbon impact. The vehicles will come flat packed and be easily assembled in country.
In Rwanda, known as the Land of a Thousand Hills, the road network is demanding with only 1000 km paved and the remainder dirt, dust, sand, gravel and mud. Often, fourwheel drive vehicles are required to navigate the challenging conditions. For farmers looking to send product to market in Kigali, or wholesalers looking to buy valuable grocery products from the country’s best farmers in the rural regions, OX Delivers is providing a much-needed lifeline, only paying for the space they take on truck rather than the entire truck. Currently, there are only seven cold store trucks operating in Rwanda.
CAREFULLY COORDINATED
The company sends electric trucks from depots in hard-to-reach areas, on a coordinated route within a 20km radius of the depot, to collect and return produce which is traded locally. On return journeys, important inputs are sent back, including fertilisers and other agricultural materials. For example, coffee beans are moved to drying facilities and then onto processing plants before heading to export corridors. The best part? The process is carefully planned by local experts through OX’s DriverPlus network, providing cost savings compared to traditional transport methods.
Managing Director for Rwanda, Francine Uwamahoro tells Enterprise Africa more about this exceptional concept.
“OX is delivering clean and affordable transport to emerging markets,” she begins. “We are focused on rural areas and we are addressing a situation where bad roads prevent drivers moving into rural areas. Through these roads is where the majority of groceries and crops and other agricultural products are coming from. We are bringing a solution where we send our trucks to reach the last mile of the bad roads so we can support, instead of individuals travelling long hours on foot with cargo
// BECAUSE THE PURCHASING POWER IS NOT HIGH HERE, PEOPLE CANNOT AFFORD EXPENSIVE TRUCKS, SO WE ARE MAKING AFFORDABILITY A PRIMARY CONCERN //
on the head. Because the purchasing power is not high here, people cannot afford expensive trucks, so we are making affordability a primary concern by coordinating the journey and by using electric vehicles.”
In Rwanda, goods move on foot or bicycle in rural areas. Slow, dangerous and arduous, this system is not for the fainthearted, and does not allow access to lucrative markets like Kigali.
OX Delivers will change this. The truck – developed in the UK by engineers with history across big names including Jaguar Land Rover – comes as a result of funding from the UK and US governments as well as other public and private institutions and angel investors. Despite its birth in England, the OX truck is designed for emerging and frontier markets. The goal is to manufacture something easy to put together and maintain, that can navigate severe conditions, and carry up to 3.5 tonnes – 20 times that of a man on a bicycle.
“We have started in Rwanda but our target is to cover the whole of Africa,” smiles Uwamahoro.
ADDRESSING COST CHALLENGES
In 2019, a convention around the industry was held in Kigali and local players discussed the theme of logistics as an engine of economic growth in Africa’s most densely populated country. The issue of cost of logistics was raised as most inhibitive, often representing 30-40% of total cost of goods. For crops including coffee and tea, this remains too high.
OX Delivers comes with a model based on a new way of trading, bypassing traditional systems developed for mature markets. The company believes that Net Zero ambitions must include Africa at the
forefront of the fight against climate change rather than an afterthought; and as a driver of trade and a connector of people and industries, cost has always been at the forefront of planning.
“Our targeted customers love our affordability and our service, and they wait for us instead of going to competitors because they know of the additional services we can provide,” details Uwamahoro.
“Some competitors do not go to the farms because of bad roads and they charge too much because there is no coordination. They travel with empty trucks a lot and they do not have professional drivers.
“Our main competition comes from bicycles which have been hauling cargo here for a long time for farmers. Our value is that our price is similar to bicycles but also, we are able to deliver big quantities in short times. We are aware of how
OX DELIVERS
beneficial bicycles are and have been and, where vehicles cannot reach, we are partnering with customers to use bicycles for smaller loads,” she adds.
The electrical system that drives the utility truck is powered by an off-theshelf EV powertrain that can achieve 100km range when the truck is fully loaded. A two-wheel drive system saves energy, cost, weight, and complexity, and clever engineering has resulted in performance that has most of the attributes of four-wheel drive but for less. Innovative suspension helps to balance the entire vehicle and this is the most important factor when navigating tough terrain. Compared to a typical pick-up truck used in many emerging markets, OX provides three times more capacity, twice the payload, and is the only electric option available. It is also significantly cheaper to run and maintain than diesel counterparts.
“We are currently piloting the model,” explains Uwamahoro. “The electric vehicle is manufactured in the UK and, right now, we have one prototype which is 100% electric in Rwanda alongside a diesel prototype, with two more electric models in the UK to arrive in Africa soon. We are testing
INDUSTRY FOCUS: LOGISTICS
in Rwanda because of the severe hills and road conditions we have here. If it can work in Rwanda, we are sure it can work elsewhere in Africa.
“Our main focus is to have an electrical vehicle available while we are developing the business model to ensure that what we are planning for the model will work in a way that is profitable. After that, we will look to expand. We project expansion into other countries in 2024 as we believe 2023 will be a year for proving profitability and making further electric vehicles available for expansion,” she adds.
TRANSPORT ECO-SYSTEM
Importantly, OX Delivers is not just an engineering supplier. The company is
building an eco-system centred around clean transportation. For so many that would never buy a vehicle in their lifetime, this is a welcome innovation in a country where the target market for motorised transport is currently classified as non-consumer.
Through a 3G app-based system, OX Delivers can help users to book deliveries and collections as well as so much more including journey tracking and payload monitoring. Fuelled by the country’s successful 2G network and strong feature phone coverage, the majority of people have access to a phone which can bring opportunities for trade and development. A new version of the app, operable through a 2G network, is soon to be released as more trucks hit the market. There
// SOME COMPETITORS DO NOT GO TO THE FARMS BECAUSE OF BAD ROADS AND THEY CHARGE TOO MUCH BECAUSE THERE IS NO COORDINATION //
is also a web app for ease of contact, alongside the main channel – a free telephone number, 6960.
“Customers call us for free and we use Driver Plus – a network of drivers who can deliver cargoes and also handle financial payments, marketing, and brand recognition in the rural villages,” says Uwamahoro. “If a customer calls us, we agree on a time that the truck will be available and a time by which cargo must be delivered. If the truck is not available, we will always suggest a different time and coordinate how is best to deliver the cargo. We give a delivery note to the customer and we ensure the end user receives the exact quantity and quality. That has helped us to be competitive compared to others because we care about the safety of our cargo and the safety of our driver and customers. In terms of affordability, we have been able to deliver for 35% less than other companies in the market.”
Drivers are trained to negotiate prices effectively, market the business to the wider community, and collect payments efficiently. Prices are typically based on weight against distance, and drivers are given all the tools to understand cost of sales with daily targets to easily understand how much they can earn.
They can also handle marketing by interacting with local leaders and new customers to distribute the company’s message, often at ‘Umuganda’ –community events where members come together to achieve shared goals. It’s win-win for OX with the community getting help, roads being improved, and a deeper level of understanding developed of needs in the market. Since achieving first revenue in Q1 of 2021, OX Delivers has realised 40% month-on-month revenue growth.
“We have two categories of truck – one which is smaller and operates in rural areas and one which is bigger and can travel longer distances,” Uwamahoro furthers. “Our main customers are farmers and there are no longer many farmers near Kigali. But people need
foods and groceries so we use a 10-ton truck to collect and deliver to Kigali. In Kigali, there are industrial centres from which the farmers must get their fertilisers, maize, rice and other essentials so we can distribute from Kigali to village and village to Kigali.
“There are also traders and business owners who want to purchase goods from farmers or products from industries in Kigali, and we are helping them to run their businesses by distributing what they need.”
INNOVATIVE & CONFIDENT
Easy to drive, cheap to run, and simple to manage, the OX truck and OX business model is a true example of innovation where it is sorely needed. Uwamahoro, who joined the company earlier this year, is a seasoned business leader and heads a diverse team
unwavering in its desire to solve problems. Empowering women, creating opportunities, supporting economic development, and acting as a catalyst for change, OX Delivers is currently an African success story.
Of course, the whole theory is built on quality. “Right now, we are responsible for maintenance of the trucks as we are still in the pilot stage. We work with different suppliers on spare parts, sometimes sourced locally and sometimes from the UK. Our drivers can do some minor repairs internally, and we are keen on safety so we are investigating suppliers of safety equipment. For us, quality is vital when it comes to spare parts and maintenance,” declares Uwamahoro.
“We encourage a gender balance and we have female drivers which is not common in Rwanda - currently, our
team is 50% women. We are training our drivers to give professional and quality service to customers, and we are charging less than others so we are confident,” she concludes.
Are we witnessing the evolution of the logistics space in East Africa? Is OX a symbol of the future? Like the Ford Model T, GM’s Hydra-matic transmission, VW’s fuel injection, Toyota’s Prius, Tesla’s software – the OX Delivers truck and business model are mapping out a new way forward. The only purposedesigned vehicle for emerging markets, which is emission free, is reimagining transport and bridging the gap between transport and poverty.
AFRIMAT
Diversification
Cements Afrimat
as Mining and Materials Leader
PRODUCTION: Christina Allcock
Afrimat is a leading mid-tier mining and materials company, supplying an enormous range of products from construction materials, industrial minerals and bulk commodities, as well as full pit to port solutions to the mining, construction, and quarry industries throughout southern Africa. An already diversified offering is constantly growing, as results fulfil its promise to consistently deliver the very best.
INDUSTRY FOCUS: CONSTRUCTION
//With more than half a century of experience driving it, Afrimat has built up a vast geographical footprint already covering swathes of urban and rural southern Africa, and growing quickly. An integrated product offering is today distributed across the Western Cape, Eastern Cape, KwaZulu-Natal, Free State, Gauteng, Limpopo, Mpumalanga and the Northern Cape.
It is a geographical flexibility which in turn translates to project scale, with the group consummately servicing major infrastructure and construction undertakings for both public sectorand government-owned enterprises, through to small private sector contracts. “This diverse client base acts as a risk hedge and geographically diversifies Afrimat’s exposure to the infrastructure-related spend in its target regions,” the company furthers.
A huge variety of aggregates and concrete-based products is on offer through its Construction Materials division, with everything from readymix concrete and building lime to clinker supplies and sand available.
The company’s Industrial Minerals arm supplies the steel industry with metallurgical dolomite as well as furnishing the construction industry with a variety of aggregate products, while agricultural lime is delivered through its Vredendal, Langvlei, Marble Hall and Glen Douglas mines.
Established in 2016, Afrimat’s Commodities division focuses on supplying quality iron ore and manganese to local and international markets. Afrimat Mining Services,
meanwhile, specialises in competences from mine planning, bulk drilling and blasting to beneficiation of products, management and logistics.
ROBUST RESULTS
“We aim to be globally respected for excellence in unlocking and enhancing the earth’s mineral potential to build a better world,” Afrimat proclaims. “We inspire growth by consistently delivering solutions through the empowerment of our people, and our customers,
and everything we do is within an atmosphere of joy and positivity.”
Such lofty aims and clear methodology have combined to result in revenues up 26.7% on 2021’s figures, with full year results ending February 2022 posting R4.7 billion compared to the R3.7 billion of the previous 12 months. In an all-encompassing success story operating profit margins of 23.7% joined headline earnings per share (HEPS)of 542.9 cents, up 22.9%, with a final dividend per share of 146 cents and return on net operating assets of 33%.
Andries van Heerden, Group CEO, attributed the remarkable achievements and strong operating cash flows to myriad factors, including favourable iron ore prices and the return to pre-Covid-19 volumes in both of the Construction Materials and Industrial Minerals divisions.
The Bulk Commodities segment, consisting of the Demaneng and recently established Jenkins iron ore mines, benefited from the efficient and timely turnaround of Afrimat’s Nkomati Anthracite mine and favourable iron ore pricing, contributing an overall 74% to the Group’s operating profit.
“This excellent performance was further enhanced by increased volumes from the Jenkins mine,” van Heerden clarified, as additional volumes contributed positively to the second half of the financial year. “Operationally, we’re very proud of what the guys did there. What they did in a very short space of time and in how they are continuously improving that business by bringing down costs – it’s quite a significant improvement that they have achieved over the last year.
“Nkomati, which produces a high-
quality product for the local market, was loss-making for the first five months of the reporting period, but turned into a profitable business from August 2021 onwards, recovering the biggest part of the losses of the first five months.”
Its people have always been at the heart of both Afrimat’s considerations and its accomplishments, whereby a famously consistently low staff turnover has resulted in a deep skills pool on which to draw, and van Heerden was equally anxious to recognise their role in a financial year which saw excellent labour relations maintained. “The Group is committed to creating and sustaining harmonious relationships in the workplace and to addressing issues proactively,” he explained.
“We continue to prioritise staff development, training and education on the human capital agenda. With training
INDUSTRY FOCUS: CONSTRUCTION
// DIVERSIFICATION IS THE KEY TO GROWTH FOR AFRIMAT, UNDERPINNED BY THE ENTREPRENEURIAL FLAIR THAT IS EMBEDDED IN THE GROUP’S DNA //
and development being a critical part of the Group, a total of 10,000 training days for employees were undertaken during the year, supplemented by the issuance of 56 staff bursaries.”
DIVERSIFIED OFFERING
Afrimat is in no way ambiguous about what will enable all of its historic success and innovation to continue.
“Diversification is the key to growth for Afrimat,” the company insists, “underpinned by the entrepreneurial flair that is embedded in the Group’s DNA.” As 2021 came to a close Afrimat announced a landmark acquisition, this time in the phosphate and rare earth minerals space, in the form of Glenover Phosphate, located 90km northwest of Thabazimbi in the Limpopo Province.
“Current reserves of phosphate, vermiculite and rare earth elements provide for a resource life of more than 20 years,” van Heerden divulged of the new asset. “Afrimat will obtain the inventory deposits of historically-mined resources and extend the life of project by acquiring the remaining in situ resource.
“The application of these minerals is vast,” he added of an acquisition set to further expand the Group’s offerings in line with its diversification strategy.
“Phosphates are used in fertilisers and rare earth elements are used in many applications, one of which is for magnets in electric motors; an international trend towards electric vehicles is expected to be a big demand driver for this application in future. Vermiculite is used in the construction of fire-retardant partitioning boards, and in horticulture as a growth medium and other industrial applications.”
Importantly, van Heerden addended, Glenover will also expand Afrimat’s product portfolio beyond the ferrous metals value chain in the form of a multi-commodity product that addresses fundamental needs and trends, including those in the agriculture and food industry, as well as in new technology applications.
Turning Data into Information into Insight into Action
An end-to-end data and informa�on company, Insight Consul�ng works with businesses to formulate and deliver on data strategies at all levels of the organiza�on, unlocking ac�onable insight with the latest thinking and technology across the data value chain.
We partner with our customers on a long-term basis, using our Customer Journey framework to inform and guide our customers every step of the way, from formula�ng a data strategy, designing and implemen�ng solu�ons, through to upskilling the
Custom So�ware Development
Insight Consul�ng’s Kodelab division is a full-scale development house, crea�ng complex enterprise so�ware and mobile apps using clear and effec�ve design processes to ensure the best customer experience.
Data Integra�on
We provide powerful data warehouse automa�on and integra�on capabili�es which allow IT professionals to consolidate data from mul�ple sources in real �me, providing complete, accurate, cataloged and up-to-date datasets for data analy�cs, as well as a host of other applica�ons and business processes.
Data Analy�cs
Our consultants are industry experts, who combine their business experience with cu�ng-edge technical excellence, enabling us to advise on and deliver intui�ve and truly valuable, self-service analy�cs to our customers, no ma�er where they are on their data journey.
Planning and Forecas�ng
Connec�ng financial and opera�onal departments with an integrated planning system, we provide solu�ons that enable top-down and bo�om-up planning, immediately showing the impact of changes on the bo�om line, easy what-if scenario analysis, and saving customers hundreds of hours in compiling and aligning plans.
Industry Solu�ons
Across the data value chain, we have developed industry and func�on best-prac�ce templates which enable quick �me to value.
• InsightBot
• Data Literacy
• Accelarator Applica�ons
www.insightconsul�ng.co.za
info@insightconsul�ng.co.za
// OUR FUTURE GROWTH WILL CONTINUE TO BE DRIVEN BY THE SUCCESSFUL EXECUTION OF OUR PROVEN STRATEGY, RECENT ACQUISITIONS AND A WIDER PRODUCT OFFERING TO THE MARKET //
“This transaction provides the Group with a new platform for growth while at the same time reducing cyclicality. Phosphate, vermiculite and rare earth minerals will also widen our international geographic market footprint.”
Such moves are perfectly aligned with what van Heerden clearly believe to be an excellent positioning to capitalise on strategic initiatives and future opportunities. “Our future growth will continue to be driven by the successful execution of our proven strategy, recent acquisitions and a wider product offering to the market, with several exciting opportunities being investigated,” he shares.
“Of course, operational efficiency initiatives aimed at expanding volumes, reducing costs and developing the required skill levels across all employees, remain a key focus in all operations. Most important of all perhaps though is our desire to uphold ESG fundamentals and consciously work on all stakeholder relationships. We do all this daily because it is entrenched in our culture to ensure returns that support long-term sustainability.”
A Healthier, Tastier, More Sustainable Future Is Brewing
PRODUCTION: Eleanor Sarbutt-King
“We unlock the power of food to enhance quality of life for everyone, today and for generations to come.” So begins the world’s largest food and beverage company, Nestlé, whose Head Office in South Africa represents the hub of an ESAR operation encompassing 23 country markets split into six clusters, where tackling hidden hunger and transforming lives and livelihoods remain pressing concerns.
INDUSTRY FOCUS: FOOD AND BEVERAGE
//Present in 191 countries around the world and with more than 2000 brands ranging from global icons like Nescafé or Nespresso to local favourites such as Ricoffy to its name, Nestlé is steadfast in its drive to enhance quality of life and contribute to a healthier future.
“We want to help shape a better and healthier world,” the company abridges.
“We also want to inspire people to live healthier lives. This is how we contribute to society while ensuring the long-term success of our company.”
This is a commitment which dates right back to its foundations more than 150 years ago, when Swiss pharmacist Henri Nestlé created an infant cereal - ‘Farine Lactée’ - which saved the life of a child. The first Nestlé products then arrived in South Africa during the 1870s, with the company’s
presence in the country formally entrenched in July 1916.
“We constantly aim to push the boundaries of what is possible with food, beverage and nutritional health products to promote better health, greater accessibility and affordability, effortless preparation, protection of our natural resources and enjoyment,” Nestlé states. “We focus our energy and resources where unlocking the power of food can make the greatest difference and apply our expertise in nutrition, health and wellness to help people, families and pets live happier, healthier lives.”
TACKLING MICRONUTRIENT DEFICIENCY
Access to affordable nutrition is a global challenge, with an estimated three billion people unable to secure
adequate food. Micronutrients account for approximately 7% of the global disease burden, and play a key role in the growth and development of the whole family. A lack of micronutrients, otherwise known as hidden hunger, can lead to poor growth, sub-optimal brain development, and a heightened risk of contracting infectious diseases.
// WE CONSTANTLY AIM TO PUSH THE BOUNDARIES OF WHAT IS POSSIBLE WITH FOOD, BEVERAGE AND NUTRITIONAL HEALTH PRODUCTS //
“That is why,” Nestlé responds, “we’re working to make high-quality food accessible and available and to address micronutrient malnutrition for the people who need it most.” The launch of NESTLÉ EVERYDAY is targeted specifically at helping to tackle micronutrient deficiencies in South Africa, in the form of an affordable fortified medium fat dairy powder drink which not only presents a viable solution to hidden hunger, but also builds immunity to help fight against micronutrient deficiencies.
In South Africa, studies have shown that adults are prone to zinc deficiency and that one in five children are stunted; addressing hidden hunger is thus a crucial step in ensuring the health and wellness of the whole family. “The introduction of NESTLÉ EVERYDAY into our stable of brands
for the South African family is a deliberate pivot from the business in East and Southern Africa,” comments Takudzwa Mupfurutsa, Business Executive Officer: Dairy at Nestlé ESAR, of the flagship product enhanced with locally sourced ingredients containing Calcium, Iron, Vitamins, and Zinc.
“We are driven to contribute to solving hidden hunger by bringing products that are affordable and accessible while boosting immunity and health for the whole family.
NESTLÉ EVERYDAY is testament to that commitment, formulated through innovative and collaborative research with labs and communities.
“The COVID–19 outbreak emphasised the importance of strong immunity to help our bodies fight against infectious diseases, while the economic impact of the pandemic
for many families in emerging economies further hamstrung access to nutritious food to build immunity,” Mupfurutsa adds. “Therefore, we locally manufactured NESTLÉ EVERYDAY in South Africa, and we were intent on delivering an affordable product that suits all budgets, and is easily available from both supermarket chains and spaza shops. We are proud that the
// WE FOCUS OUR ENERGY AND RESOURCES WHERE UNLOCKING THE POWER OF FOOD CAN MAKE THE GREATEST DIFFERENCE //
INDUSTRY FOCUS: FOOD AND BEVERAGE
final result also delivers exceptionally on taste, ensuring a delicious experience for the whole family.”
TRANSFORMATIVE THINKING
One of the most widely recycled materials in the world, aluminium is infinitely recyclable, saving enormous quantities of energy in its production and making it well-suited to the circular economy. Nestlé is continuing to drive science, technology and innovation to help meet its 2025 ambition to make 100% of its packaging recyclable or reusable in a first for the Starbucks® At Home by Nespresso® range, with the announcement of coffee capsules that are to be made using 80% recycled aluminium.
“With every material we use to produce the capsules, we are
// BY USING 80% RECYCLED ALUMINIUM, WE DEMONSTRATE ITS RECYCLABILITY AND IN TURN HELP TO DECREASE THE CARBON FOOTPRINT OF A CUP OF COFFEE //
committed to ensuring that none of our packaging ends up in landfill or as litter and aim to minimise the impact of our packaging on the environment,” explains Nicole Roos, Business Executive Officer for Beverages at Nestlé East and Southern Africa Region. “This includes advocating for adequate recycling infrastructure for coffee capsules regardless of the material used. In addition, aluminium can be re-melted and reused infinitely, giving it a second life.”
The range is available across stores
including Checkers, Pick ‘n Pay, Spar and Makro as well as convenient online platforms such as Takealot, Checkers Sixty60 and Pick ‘n Pay Online. Not only is this new initiative infinitely better for the environment, aluminium is also one of the best materials to retain freshness and protect the aromas of the coffee, providing an exceptional barrier to oxygen, light and humidity.
“By using 80% recycled aluminium, we demonstrate the recyclability of aluminium and want to encourage our consumers to recycle their
Merchandising
Merchandisers ensure that our Principal’s products appear in the right store at the appropriate time and in the correct quantities.
Field Marketing
Experienced staff stationed at all our independent traders, retailers and wholesaler channels ensure maximum shelf space, shelf occupation and on-going long standing relationships.
aluminium capsules, helping in turn to decrease the carbon footprint of a cup of coffee. This is a key aspect of the Nestlé ESAR RE initiative that focuses on three key pillars RETHINK, REDUCE and REPURPOSE to tackle
Order Administration and Warehouse Co-Ordination
Orders are captured and tracked from warehouse and distributors to our different traders and retailers
Information Technology
We have access to and continue to improve our IT infrastructure and resources to supply our clients with an effective service.
sustainability issues”, Roos adds.
Nestlé is also wholly committed to the push to grow agribusinesses and encourage agripreneurship amongst young people in east and southern Africa, instituting the Nestlé Needs Youth (NNY) Agri Competition in partnership with the Branson Centre of Entrepreneurship South Africa. Capacity development, mentorship, and coaching support are all key to addressing the widespread skills gap in agriculture in Africa, accelerating the evolution of the sector and affording better efficiencies, improved processes, and cutting-edge technologies
“Many of Africa’s economies have an agrarian foundation from community all the way to national level and through this competition, we are looking to support and encourage young people to
participate in this economic sector,” explains Nestlé East and Southern African Region Head of Learning and Development, Desiree Zikalala.
“There are several transformative prospects in agriculture that desperately need young people to step in and lead, and we believe that the IGNITE Programme placements that are up for grabs will help facilitate those opportunities. We intend for the NNY Agri Competition to open further dialogue on young people in agriculture, and help build transformative networks that support agripreneurship, employment and employability.”
CaseWare iXBRL Reporting enables users with an automated solution to prepare CIPC iXBRL reports. IFRS Financial Statements or SME Financials Statements (Desktop), supports the creation of iXBRL reports by default with automated embedded tagging. For users not using a CaseWare Financial Statement solution, XBRL Lite empowers preparers to capture all relevant disclosure and create the iXBRL report with all the benefits of iXBRL Reporting.
When CaseWare iXBRL Reporting solutions are combined with CaseWare Cloud and SmartSync, distributed teams can seamlessly collaborate together on the same engagement, wherever they are, at any time.
Key Features
CIPC iXBRL Compliance
Create CIPC iXBRL reports with seamless support forall mandatory fields and the CIPC taxonomy.
Utilise pre-tagged iXBRL CIPC support by default when using CaseWare to draft IFRS or SME annual financial statements.
CIPC Validation Flexible Report Reviewer
Validate iXBRL integrity with rigorous data checks and real-time online validation against the CIPC portal.
Preview all tags used within the iXBRL file quickly and easily using the built-in report reviewer.
WE CAN HELP YOU MANAGE YOUR WASTE
At Sealand we've taken on the challenge to transform the gifting industry by upcycling advertising banners that would otherwise be deemed as waste. This material, Polly Twill, lines each Sealand bag, making our product unique and vibrant. We are future proofing our circular economy approach by o ering you a partnership to gift with a conscience, divert waste from landfill and empower our team of local machinists who hand make every Sealand bag. Contact us for more information.
