Finance Focus Q2 2022

Backed up by almost 100 years of experience, with a track record that defined and shaped our pedigree on the South African retail property landscape, comes a fresh and innovative asset and property management company – Mowana Properties.

We are committed to serving our customers by providing innovative and pro-active property solutions. Contact us and find out how we can ensure the continued growth of your business.

mowanaproperties.co.za

EDITOR Joe Forshaw  joe@finance-focus.net

SENIOR PROJECT MANAGER Sam Hendricks  sam@finance-focus.net

SENIOR PROJECT MANAGER James Davey  jamesd@finance-focus.net

PROJECT MANAGER Ekwa Bikaka  ekwa@finance-focus.net

PROJECT MANAGER Eleanor Sarbutt-King  eleanor@finance-focus.net

PROJECT MANAGER Jamie Waters  jamie@finance-focus.net

LEAD DESIGNER Aaron Protheroe  aaron@finance-focus.net

FINANCE MANAGER Isabel Murphy  isabel@finance-focus.net

CONTRIBUTOR Manelesi Dumasi

CONTRIBUTOR Timothy Reeder

CONTRIBUTOR Benjamin Southwold

CONTRIBUTOR William Denstone

Finance Focus is written and produced by a team of journalists with a collective experience of over 35 years in business to business journalism. Every month we bring stories, from across the industry, of companies striving to make a positive difference to the sectors they serve, be it through innovative cutting edge technology, entrepreneurial individuals influencing the industrial landscape, ground breaking projects and developments as well as many other inspirational pieces.

The media world is evolving rapidly, technology is helping to connect people and business in an instant. We embrace this and invest heavily in our distribution channels to ensure that the publication is easy to read through a digital circulation which is accessible at your desk or on your travels through smartphone and tablet compatibility. Whilst being at the forefront of the digital push, we also retain a superb quality print run to deliver a traditional hard copy magazine every month.

Our award winning editorial and design teams work tirelessly to produce the best content in the most well designed publication of its type, helping businesses of any size and stature to deliver news, and grow brands.

Our readership is made up of business professionals across every finance industry sector in Europe, the Middle East and Africa. Typically decision makers such as CEO’s, directors, and senior managers read the publication regularly and with a subscriber base of over 110,000 individuals the coverage that Finance Focus offers is perfect for any business with a story to tell or a product to promote.

Get in touch and tell us more about your company’s circular endeavours. We’re online at 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.

© CMB Media Group Ltd 2022

UDM INTERNATIONAL

UDM Drives Culture of Success as Sales Skyrocket

GRAND RE

Balancing Risk Across the Continent

CIPC

Innovating and Improving to Support Enterprise and Growth

UDM DRIVES CULTURE OF SUCCESS AS SALES SKYROCKET

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

“We can sell anything,” smiles Jacqui van der Riet, Managing Director of UDM International, a leading South African direct marketing business. “It’s incredible what you can sell over the telephone with the right incentive structures for your staff, the right recognition, the right training – I believe we could sell anything.”

Established in 1994 as a modest sales operation handling a small number of promotional insurance campaigns, UDM has changed, adapted, survived and thrived through all that South Africa has thrown at it over the past three decades. Economic evolvement, socio-economic shifts, technological transformation, and regulatory rollercoasters have moved the goal posts – many times – but UDM continues to score, notching up highly impressive sales numbers for its clients. An employment creator, this 380-strong company is on the rise, consistently bringing in new people across multiple disciplines while others slowdown and dwindle because of weak market conditions that came as a result of the pandemic.

“Now, we are on an amazing growth path and there is a different feel in 2022. We are seeing that people feel we are approaching the end of the Covid disaster and the mood in the market, as well as the mood of staff, is all about recouping and growing,” van der Riet tells Enterprise Africa.

But industry commentators are quick to chime ‘sales is hard, sales only allows you to be as good as your leads, working in sales bring too much pressure’. In fact, even global CRM business Sales Force has released research demonstrating that sales is one of the toughest career choices because of the demand for relentlessly increasing productivity, the challenges in reading each individual customer, and the need to take personal accountability for results.

The Wall Street Journal released a report in 2021 detailing that, even with high pay and large numbers of vacancies, fewer and fewer are looking to get into sales worldwide. The industry has earned itself a mixed reputation, but companies that solve problems and work alongside clients and customers, rather than only in self-interest, are reaping the rewards of the new market which is more consultative and transparent.

SELLING SUCCESS

For UDM, sales is not about being pushy or selling for the sole purpose of commission. The company works almost as an extension of its client and delivers services that make a difference in the lives of the customer. For this reason, the company is flourishing and changing the image of the world of sales through a vibrant, attractive company culture.

“We take on around 30 trainees every single week and they go through a 12-week training period. Initially, they are on a temporary contract but if they are good enough over the 12 weeks then they will be offered a permanent position. Of the 30 trainees,

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

only 6-10% end up permanent because it is a difficult job that requires discipline, hard work and high productivity. As a result, we are always looking for new people.

“We are currently redesigning our training division, just because I feel that the percentages of people going permanent are not high enough. I have included all of the top salespeople – and we have an elite team – and they are the highest earners in the company, and they are helping to compile training which comes straight from the horse’s mouth. We are hoping that more realistic training is going to help us keep more people permanent,” explains van der Riet.

Often a quickly forgotten fact, sales is the lifeblood of any organisation and without a growing pipeline and a set of real people who can get deals over the line, progress will slow very quickly. With this vital cog in place, selling useful and tailored products becomes easier, helping to drive performance for all.

“When we sell cancer insurance or accidental disability cover, we feel we are making a difference in people’s lives – that can be more important than money,” says van der Riet.

Locally owned, female-managed, with a proven track record, UDM delivers growth and development.

The company is well-versed in all regulations and requirements in the local market and has clean and concise processes to avoid the often long and loathed methods associated with organising insurance over the phone. The company only employs people and doesn’t not use any form of robo-callers or recorded messaging.

CULTURE RULES

Bullish van der Riet, who has been with the business for 27 years, says that the key to efficient and effective sales is motivation of people. By looking at how salaries are made up, and paying well above the market average, employees have a clear vision on how to go about improving their pay packet.

“When people hit their targets, they are very well renumerated and they earn more than most highly professional people,” she says. “The motivation is money, but there is also an atmosphere where people are highly recognised. We give out awards every week and we have a really fun vibe that breeds success. It’s contagious –when you’re in the building and you become part of it, it becomes addictive.”

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

Company culture is listed by Forbes as the most important element in strategy, helping to attract and retain talent, build a strong brand, and grow turnover. At UDM, the culture has been nurtured over a long period and the result is a driven environment where people support each other while having fun. Importantly, van der Riet is sure this culture gives UDM the edge over competitors.

“It doesn’t exist anywhere else currently and would take a lot of time and effort to recreate,” she explains. “Of the people that leave, 70% beg to come back. I don’t believe any other company is as generous with their staff, I don’t believe any other company is as involved with their staff, I don’t believe any other company has the family atmosphere, I don’t believe any other company has the fun that we have, and I don’t believe any other company has that authentic relationship of support throughout the entire company – that is what makes us unique.”

Add a competitive bonus package and a structured method to the mix and you have a recipe for success.

“Everyone earns a percentage of what they sell and that kicks in at 50% of their target. As you reach more of your target, your incentives increase. Between 90% and 100% of target, there is a big gap, but it could mean a R25,000 a month difference in salary. Bonuses then kick in at 105% and 110%. People are always aiming higher as it makes a big difference to their income. The combination of people knowing exactly what is expected of them, the tools they are given to work, and the motivation to get involved and work makes for a great offering where everything is achievable,” details van der Riet.

“Everybody in the company is planned for every hour of the month. We have huge schedules where we know how many leads we will be getting on certain campaigns and we know how many hours we have for people to work on those campaigns. People do not sell across all products, they are focussed on certain campaigns. We will put people where they are most suited. We give people targets and leads in advance and everything is very organised. It is strategic and well planned.”

PEOPLE POWER

UDM’s devotion to its people was displayed as the Covid-19 pandemic emerged and rolled on. A crushing blow for many companies, UDM thrived as customers became more available and the importance of risk protection was thrust

EVERY BUSINESS TEXTBOOK WILL TELL YOU TO HAVE ONLY ONE MAJOR CLIENT IS THE WORST IDEA

into the spotlight. Adjustments to the sales process to up volumes as pricing reduced was quick and seamless.

“Our contact-ability skyrocketed and that helped our business tremendously,” says van der Riet. “The downside of that was that our client is the insurance company and we get paid for every sale that we make so we don’t get involved with sending of policy documents or collecting premiums. They found that even though we were making thousands and thousands of sales, they weren’t necessarily collecting very well. With the change in the economy and affordability being hampered by Covid, people became more conservative with their spending and there was a lot of job losses and reductions in salaries. As a result, our client said to us that they would reduce premiums from around R250 per month to around R99 per month. Our fee is completely linked to the value of the sale, so when the premium goes down, we are earning a third of what we were. To counter, we have had to look at volumes. We are bringing in lots more people and throwing everything at the R99 premiums.”

The result – more jobs were created and the company did not retrench a single person. A streamlining process allowed for each individual to be utilised to maximum capacity so that the company continued to grow and deliver for its client.

The partnership between UDM and its Insurance Company client goes back more than two decades and has been one which both parties have received major benefit. The client offers top class insurance services including cancer and accidental disability policies. In the early days, it built an amazing network through a referral scheme but needed a marketing solution to drive sales. UDM had been handling small-scale sales for the likes of AIG, Protea Life, Alexander Forbes and others, but stepped in for the client and never looked back. The relationship became exclusive in the early 2000s and both boost each other’s success.

“It really has paid off,” van der Riet smiles. “Every business textbook will tell you that to have only one major client is the worst idea, but it has been very good for us. We bend over backwards for each other and we are dependent on each other for the success of both businesses.

“I often worry about what would happen if we lost our client, but I have to remember that we are just as valuable to them as they are to us. As long as we keep ourselves valuable then we will continue to succeed.”

Thankfully, van der Riet knows how to remain valuable and keep a company nimble. Joining UDM as a part-time receptionist 27 years ago, she has a deep understanding of every aspect of the business. Initially, she came in to simply answer the phone, but got bored and started to drum up competition with another employee who was tasked with collecting new details from policy holders whose renewals had lapsed. The excitement and earning potential was a draw for the young professional, and she developed new strategies based on previously ignored statistics. But she quickly became aware she must start to bring in more business – the start-up was not flush, and a more comprehensive approach to growth was required.

“When I started at UDM, our turnover was R2500 per month, my salary was R4500 so I knew quickly that we needed to get some work in here,” she remembers. “Word of mouth in the industry ensured that people knew who we were and we then got enough business to get some employees in permanently. We got some work with AIG and other big-name insurance companies, and then we were approached by the owner of our insurance company client who could see that direct marketing had huge potential. Back in the day, it was about sending out thousands of mailshots to people in the post and then waiting for them to fill out applications and return them. If you got a 1% return, it was considered a success. But with telemarketing there was an expectation of around 13% which was great. We managed to get data and began selling, upselling and reselling to people, and that is when our client wanted us on an exclusive basis. We started selling a women’s cancer policy and that cost R49 per month and we then started to try and add a husband to a policy which meant we could sell two policies in one call. That took our business through the roof almost overnight.”

Quickly, the company jumped on the opportunity of selling to the male population and began with an accidental disability

policy which was eventually offered to women too. Traditionally, because of the nature of the referral model used by the client, UDM’s exposure in the African market had been limited, but this changed with the launch of a new product range from the client.

“We started selling cancer insurance but that was difficult. We tested a TB product, and that didn’t work. So, we now sell accidental disability and death cover into the African market and that sells very well. Many people travel by taxi and it can be quite dangerous, with many accidents, but we cover any accident.”

Away from insurance, the company also boasts a strong cosmetics sales business, broadening the portfolio and demonstrating van der Riet’s claim that the company can sell anything.

“Our main focus is insurance, but we can’t underplay cosmetics. Last year, we sold around R145 million of cosmetics and that is amazing how we can do that telephonically without sending sample packs or anything like that - it’s all about the conversations. We send a yearly supply and we then deduct monthly on a subscription model.”

FUTURE GROWTH

There are obvious growth strategies for UDM, including finding new customers, selling more products, and driving for improved conversion figures, but in a direct marketing business you cannot simply grow overnight – for every new growth phase, the company needs more people. At the same time, the

WE ARE ALL DOING SO WELL AND WE ARE IN CONTROL OF OUR DESTINY AND THAT IS A BEAUTIFUL THING

company currently has more than enough business and an exclusivity agreement with its premier client. So, van der Riet is considering options.

“The safest way for UDM to grow would be to formulate our own products – that doesn’t have to be insurance,” she says. “At one stage we were looking at organic cleaning materials. We started developing the products and we started to build a database through a referral scheme. But we struggled to get the profitability that we need. We couldn’t get the margins and it was a real stretch to find that.

“To grow quickly, we can introduce more products with our current client but also take on new business with new people. We have a great relationship with our current client –we earn the most money with them and their data is amazing, but we always keep our eyes and ears open.”

In terms of geographic expansion, right now van der Riet believes UDM has more than enough opportunity at home in South Africa and is not looking to grow beyond the country’s borders. In the past, the company has explored opportunities in the UK, USA, Poland and other areas, but with limited success and a complex regulatory environment, a decision was taken to remain in South Africa. “All the directors of both the client and UDM are very happy with that decision,” she confirms.

And when it comes to the future much further down the line, no concrete plan is in place – again, UDM will take opportunities as they come. One thing is for sure, the company structure will not change.

“I don’t want to sell. I don’t want to list. I don’t want to retire,” declares van der Riet. “We are all doing so well and we are in control of our destiny and that is a beautiful thing. I want to protect what we have which is a great thing and a unique situation where people are happy.”

She adds that even if the company was to look at opening another branch in pursuit of growth, this could fragment attention and take away from the highly impressive work the company is doing right now.

Key in the success of UDM is an unyielding focus on being the best and achieving results. This mantra has run through the business for many years, and is delivered through a top-down approach with every employee understanding the importance of their role. Ultimately, the company’s mission statement is to be acknowledged as the most professional, ethical and successful direct marketing organisation in the world.

“I don’t accept second best. We have a great understanding of that and our staff are very supporting of that ethos.”

Apparently, UDM is taking inspiration from Nelson Mandela, who said: “I never lose, I either win or learn.”

Expect brilliant things from this business in the future. With such great accomplishments already achieved, and with a culture of excellence spanning a magnificent group of people, UDM is certain to grow, and continue driving results for clients while solving problems for customers.

GRAND RE

BALANCING RISK ACROSS THE CONTINENT

Established in 2005, Grand Reinsurance Company (Grand Re) provides sound reinsurance and financial services to Zimbabwe and, increasingly, the entire African insurance market. The company’s Managing Director (MD), Tatenda Katoma details how a rapid and sustained expansion across Africa is reaping rewards for all, allowing the company to tailor sorely-needed solutions while supporting skills development and premium retention for the entire continent.

PRODUCTION: Timothy Reeder

INDUSTRY FOCUS: INSURANCE

Reinsurance is more commonly known as ‘insurance for insurance companies’. A vital second layer of protection, it drastically reduces the risk for major insurers of suffering dangerously high losses as a consequence of payments for large claims. It is becoming an increasingly essential tool used by insurance companies to manage risks, and the amount of capital they must hold to support those risks.

Between 2011 and 2020, sub-

Saharan, national, regional and international reinsurers achieved an average annual growth in gross written premiums of 9.15%. Despite a challenging operating environment in 2020 marked by the Covid-19 pandemic, volatile oil prices, high inflation, and depreciation of local currencies, the growth potential of reinsurance in sub-Saharan Africa is widely acknowledged as being extremely strong. Even in such a constraining

context, the region is blessed with abundant natural resources and strongly growing economic indicators, alongside a young and dynamic population offering strong insurance growth potential and legislation which is always evolving apace. A rise in infrastructure investment in recent years has also been a sizeable contributing factor in the overall development of the local reinsurance market, a trend that is expected to continue as sustained economic growth and a general tightening of reinsurance rates supports further improvements as stability returns.

PAN-AFRICAN EXPERTISE

Beginning life in 2005 as a local provider of reinsurance solutions

“THE COMPANY HAS MOVED FROM BEING A LOCALLY-OPERATING OUTFIT FOCUSING ON ZIMBABWE TO BECOME THE ORIGINAL PANAFRICAN PLAYER”

Tatenda Katoma - Managing Director

“A PRESENCE IN MORE AND MORE TERRITORIES ENSURES THAT WE ARE ABLE TO GIVE ACCESS TO GOOD QUALITY INSURANCE PRODUCTS ACROSS THE AFRICAN REGION”

to cover all short-term business in Zimbabwe, Grand Re now boasts expertise across agriculture, engineering, fire, liabilities, and motor, and even taking in such specialist fields as marine and aviation.

“The company has been fully operational now for close to 20 years, starting out with a singular focus on our local market of Zimbabwe,” he harks back to the very beginning. “Over the years, however, this focus changed and in 2014 Grand Re’s structure was overhauled entirely in our bid to become the preferred reinsurer

in the sector. As a result, we were propelled from eighth in the market to first position and a key player in the space of just two years. We have always demonstrated the highest levels of service in the markets we serve,” Katoma sums up. “Our reassurance to our clients is that we have the same commitment to excellence as they do and the resources to back it up.” Grand Re’s success and growth has taken it way beyond its Zimbabwe origins, Katoma goes on to tell us, to establish a footprint well on its way to covering the entire African continent.

“Our original expansion into the rest of Africa was in the form of our Botswana office, for which we received our full license in 2020 and which is now fully operational and growing at a tremendous pace,” he proudly relays.

“Following this original expansion, more recently we opened a fully-fledged office in Tanzania, in September 2021, and then at the beginning of March this year the company started operations in Douala, Cameroon, which will focus on all of our Francophone business.” The official confirmation came in February that Tanzania had been granted a newly registered reinsurance firm, making Grand Re the country’s second local reinsurance company joining Tanzania Reinsurance Company (TanRe). With these initial forays outside of Zimbabwe successfully completed, Katoma is keen to convey that Grand

INDUSTRY FOCUS: INSURANCE

Re now intends to take its portfolio across the whole continent, which brings significant mutual benefits.

“This is a very deliberate plan of ours,” he makes clear. “Given the ever-changing nature of the insurance landscape in Africa we see dynamic, new, and complex challenges and risks emerging every day. The intention

therefore is to avoid concentrating our business in any one location to ensure that if anything were to happen in one territory, the relevant section of the business would be secure and stable enough to offer the required assistance to the affected area.

“Overall, from a strategic point of view the company has moved

from being a locally-operating outfit focusing on Zimbabwe to become the original Pan-African player,” Katoma condenses. “We have broadened our ambitions now to establish ourselves firmly on the African continent, targeting in particular the Southern East African side and working our way into the rest of Africa.”

VISIONS OF AFRICAN LEADERSHIP

Grand Re’s steady march across Africa brings wholesale benefits to the market and its customers, while the increase in the number of reinsurance firms is a vital step in ensuring the

“WE NOW WANT TO COMPETE WITH THE TOP TIER PLAYERS ON THE AFRICAN CONTINENT AND ATTAIN A COMPETITIVE RATING TO PUT US AMONG ITS LEADERS”

risks are retained locally, Katoma adds. “A presence in more and more territories allows us to ensure that we are able to give access to good quality insurance products to more and more key clients across the African region,” he delineates. “Currently, there are a lot of classes of more specialist insurance where people are failing to find cover, and Grand Re intends to create tailor-made products for each region to ensure that our clients are able to secure the capacity that is much needed in these areas.”

“On a much wider scale, this will in turn assist the African continent in keeping hold of premiums that historically have always been placed into offshore markets, such as those in Europe and Asia. It is strategically beneficial to the company, of course, but also to these African countries if we are able to increase underwriting capacity locally, and thus assist the country to retain this much-needed forex that would otherwise be placed elsewhere.”

Capital raising and regulatory compliance, along with recruitment and training of the staff charged with manning all these new offices, is consuming a sizeable amount of Grand Re’s current drive and resources, according to Katoma; it is having a tremendous knock-on effect for skills development in this important African sector he explains. “In terms of human capital, the sheer growth of the business has also highlighted something of a scarcity of skills on the continent. We are really on a drive to grow our talent and develop these specialised, actuarial, and legal competences within our own respective offices.”

Amid the most stringent of operational challenges and volatile prevailing market conditions, Grand Re has withstood it all to be positioned more strongly than ever and with a clear path to further dominance, Katoma

wraps up. “We are now fully focussed on our value proposition, really getting to the bottom of why it is we are here and differentiating ourselves from the competition via our offering to our clients and remaining relevant,” he states.

“Throughout the pandemic and a litany of economic challenges we have recorded more than doubledigit growth year in, year out, quite contrary to what we see happening around us,” Katoma explains, “and the robustness of our business model allows us to respond to the needs of our clients and attract every possible dollar to position us to fulfil our strategic objectives. We now want to achieve a balance sheet that allows us to compete with the top tier players on the African continent, and to attain a competitive rating to put us among

its leaders. This is what Grand Re is pursuing: to be number one in the market in Africa and the go-to brand across every market that we serve.

“We look forward now to growing together with all of the new clientele that comes along with all these new strategic developments and building ourselves up to be the reinsurer of choice across sub-Saharan Africa. Our personal performance far exceeds the global reinsurance industry, and at Grand Re we are refocusing, reinforcing, and revolving the risk transfer mechanisms to ensure that, time and again, we are the perfect reinsurance partner.”

CIPC

INNOVATING AND IMPROVING TO SUPPORT ENTERPRISE AND GROWTH

PRODUCTION: Oliver Skipper

Established by the Companies Act 2008, the Companies and Intellectual Property Commission (CIPC) is a vital agency of the Department of Trade and Industry in South Africa, coming into effect in May 2011. A dual office integral to the registration of companies, co-operatives, and intellectual property rights, CIPC seamlessly transitioned to not only maintain but improve standards and turnaround times as the pandemic took hold, with a policy of ceaseless innovation at the core of its efficacy.

INDUSTRY FOCUS: GOVERNMENT

While they may not necessarily even be aware of it, every individual who has registered a company name in South Africa has been dealing with the Companies and Intellectual Property Commission (CIPC) right from the inception of the nascent business.

Created in May 2011 from the merger of Companies and Intellectual Property Registration Office (CIPRO) and the Office of Company and Intellectual Property Enforcement (OCIPE), since its formation CIPC has undergone a sustained and rapid transformation in order to improve its service delivery, and to allow it to

now contribute in a most meaningful fashion to South Africa’s overall developmental and economic needs. A swift metamorphosis has been required, from its baseline as an administrative organisation with little or no regulatory focus, operating an almost exclusively manual, paperbased process at risk of errors and lost documents and reliant upon an outdated and unreliable ICT infrastructure and ICT governance.

CIPC’s great strides have expedited the modernisation of the organisation to bring it in line with, and exceed, current standards. Upgrading infrastructure and

introducing new and improved online services has completely overhauled and remodelled the full scope of processes: from company registration, name reservations, annual returns and director and member changes to financial yearend changes, address changes, as well as trademark, patent, design, and copyright in film applications.

FAR-REACHING REMIT

Commissioner Rory Voller informs Enterprise Africa of CIPC’s inception and primary functions, unpacking an institution comprising over 500 staff with an annual budget of around R700

“WE HAVE USED DIGITAL TECHNOLOGIES AND PARTNERSHIPS TO BECOME A MODERN, WORLD-CLASS REGULATOR OF BUSINESSES AND INTELLECTUAL PROPERTY RIGHTS”

Commissioner Rory Voller

Our Services

million, as broad and multifaceted as it is complex and intricate. “We have a dual function of registering companies, and registering intellectual property rights,” he delineates firstly. “Beyond the registration of companies, however, I also deal with issues surrounding patents, copyright, trademarks and industrial designs.

“There are still some jurisdictions

which have these two registries as separate offices, whereas in South Africa the decision was taken to combine them, coming about as the result of a major amendment to the Companies Act just over a decade ago,” Voller explains. “In South Africa there was a wholesale overhaul of its company law, and which resulted in the implementation of various regulation agencies. One of these was the Companies and Intellectual Properties Commission, previously the Companies and Intellectual Property Registration Office.

“Behind these major changes was a shift away from the office merely being one of an administrative nature, to become a regulator of various pieces of legislation under corporate law and international property law. Beyond the scope of being the registrar

of various domains and aspects of corporate law, we are also very much involved and entrenched in the work of improving corporate governance in South Africa, as well as dealing with the effective enforcement of the legislation under our purview.”

CIPC plays a key role in ensuring the integrity of the country’s company registration system, underpinning a growing economy, but this is always expanding, Voller furthers. “Our regulatory role has evolved to the extent that we are now, too, very much responsible for looking closely at financial reporting standards in the country, by ensuring that we comply with international reporting levels, while reviewing and monitoring compliance with annual financial

Continues on page 26

“I HAVE WORKED HARD TO INSTIL A CULTURE OF CONTINUOUS IMPROVEMENT WITHIN THE ORGANISATION”

All our solutions come with installation, IT support (full-time), technical assistance and maintenance. These services are suitable for the public sector, private businesses and home offices.

DIDO is an integrated IT & Document Solutions provider providing digital solutions in the already complex IT world.

OFFICE AUTOMATION IT INFRASTRUCTURE SECURITY MANAGED PRINT SERVICES (MPS) SOFTWARE AND HARDWARE

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

Flexible Report Reviewer

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.

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.

www.casewareafrica.com

INDUSTRY FOCUS: GOVERNMENT

Continued from page 23

statements as lodged with us at CIPC.”

CIPC’s role’s being twofold gives it a scope far beyond company registration, Voller is at pains to transmit, across myriad aspects of regulation and enforcement. “We have a heavy involvement in the area of international property enforcement, and play the coordinating role when it comes to dealing with anti-piracy and anti-counterfeiti ng activities,” he says.

“We bring together enforcement and prosecuting agencies together with the rights holders whenever fake merchandise is being sold or advertised, and also have act in an educational capacity towards prosecuting authorities and the police and customs services. We have established ourselves as a substantial, sizeable public entity within government.”

INNOVATION, AUTOMATION, DIGITISATION

While the pandemic wreaked havoc for so many organisations, CIPC found itself ahead of the curve and extremely well-placed to continue in a fashion as close to normal as could be hoped; it even brought the chance to re-evaluate and institute a number of impactful changes, Voller unravels. “Some of our most important work is in the space of massive education and awareness activities,” he describes firstly, “and one lasting ramification of the pandemic is that it pushed us into the realm of online webinars, allowing us to reach a far greater spread of people. This is something we now have no intention of deviating away from.

“When the move came towards telecommuting and working from home it was a very smooth adaptation for us, as this was a road down which CIPC had been travelling

TIPS TO READY YOUR BUSINESS FOR FINANCING

Natisha Lazarus - Head: Business Banking, Sasfin Bank

for many years,” he explains. “We had the infrastructure already here which staff were accustomed to using every day, which facilitated the move offsite and enabled them to continue seamlessly to register companies and deal effectively with every one of our responsibilities.

“Our enforcement activity

Continues on page 28

Small and mid-sized businesses are the cornerstone of South Africa’s economy. They make up approximately 98% of the businesses in South Africa, and yet they continue to struggle to obtain finance to either start or grow their businesses.

One of the biggest challenges SMEs continue to face is securing funding to start a business or to enable the growth of their businesses. As a business bank that focuses on the SME market and helping businesses to grow and evolve into mature organisations, we have identified seven ways you can ensure your business is credit worthy.

1. Ensure your personal and business credit ratings are in order. Maintain monthly payment obligations to avoid defaults and judgements being listed against your name on a credit bureau.Your personal credit history will be reviewed as closely as the business’s credit history.

2. Update your information with credit bureaus. Credit bureaus collect data that is translated into a business score. Financiers use this to determine the outcome of your application.

3. Maintain your public records. Should you have any credit bureau listings against your personal/business name, apply for them to be rescinded.

4. Route all business trading (turnover) into your bank account to build a track record. Most banks base certain credit decisions on the turnover routed to the bank account.

5. Maintain separate personal and business bank accounts.

6. Apply for credit before you need it and do not overdraw your account without prior engagements with your bank.

7. Consider alternative lenders, as the conventional banking solutions may not suit your business.

Find out how Sasfin can support your business by visiting sasfin.com or call us on +27

11 809 7500

“OUR SERVICE DELIVERY STANDARDS SURROUNDING THE PROCESSING OF APPLICATIONS WERE UNAFFECTED THROUGHOUT THE PANDEMIC”

INDUSTRY FOCUS: GOVERNMENT

Continued from page 26

took something of a hit during the period,” Voller concedes, “as so much of it is required to be meeting-based, or to bring parties together in mediation and arbitration when dealing with complaints.”

The strain on CIPC’s regulatory role that very much temporary, however, lasting only around six months as it very quickly adapted in typically innovative fashion. “Our service delivery standards surrounding the processing of applications were unaffected throughout,” he states. “We must register a company within one

“I HAVE WORKED HARD TO INSTIL A CULTURE OF CONTINUOUS IMPROVEMENT WITHIN THE ORGANISATION”

day, for example; we didn’t deviate once from this strict turnaround time.

“It really helped that the majority of our work has been done online for many years,” Voller stresses, “and CIPC is a highly automated environment exemplified by our range of e-services but arguably best by our flagship product BizPortal, one of our major success stories.” Developed by CIPC, the platform is designed to offer company registration and related services in a simple, seamless, and digital way, in response to the quest to improve the ease of starting a business in South Africa.

“It exists to bring together a multitude of services and departments into a single portal so that the entrepreneur is able to start a company and access a gamut of services in a single location,” Voller outlines. “We have also brought in private sector partners, to enable people to apply for business banks accounts, for example, or to access the domain authority of South Africa if starting a website.

“We are proud of the fact that BizPortal was developed entirely

in-house,” he continues, “and such has been its success that it has featured on two occasions in state of the nation addresses by the President, in the context of having helped to further the growth and ease of doing business within South Africa, while reducing the bureaucracy and red tape by having everything in one place.” The turnaround time of starting a business now averages a startling 15 minutes.

“It has taken us a long time to reach this point, but the whole idea with BizPortal was that functionality would increase year-on-year and it would host an ever-greater breadth of services,” Voller rounds off, with Google SA is the latest to join and offer small business owners access to a range of its own services through the platform.

510,000 new businesses were registered in 2021, the most that has ever been recorded in a single year, so this ethos of innovating wherever every possible element will allow CIPC to deliver even greater efficiencies and service. “I have worked hard to instil a culture of continuous improvement within the organisation,”

Voller enthuses, “so pandemic or not, we always look to innovate.”

“We have used digital technologies and partnerships to become a modern, world-class regulator of businesses and intellectual property rights, and through being agile, adaptive and high-performing we will seek to make an increasingly important strategic contribution towards South Africa’s enterprise, competitiveness and growth.”

// CIPC IS A HIGHLY AUTOMATED ENVIRONMENT, EXEMPLIFIED BY OUR FLAGSHIP PRODUCT BIZPORTAL //

CURO FUND SERVICES

FUTURE-FOCUSSED FINANCE DIGITISATION

For more than a decade, Curo has been finessing the investment administration processes that underpin and facilitate investment house offerings. Now South Africa’s largest third-party administrator, Curo’s ethos of coupling technology with expertise is powering a drive towards digital and embracing cutting-edge finance mechanisms.

PRODUCTION: Timothy Reeder

INDUSTRY FOCUS: INVESTMENTS

Aproudly South African, multifaceted and fine-tuned solution provider, at its core Curo sets out to provide administration services that cover the entire lifecycle of an investment. Two overarching ideas have guided Curo in its ascent to the top of this critical industry, as it makes plain. “We invest in great people with deep expertise, and secondly, we remain responsive to our customers’ dynamic needs.” Curo possesses a wide range of costeffective, outsourced investment management solutions, with an integrated and scalable platform giving clients a crucial competitive edge.

“We have been in operation for more than a decade to become one of the largest providers in the South African market,” Curo asserts. “Our wellestablished track record is founded on the principles of specialised investment expertise and market-leading flexibility, alongside a comprehensive investment administration service covering life products, pension and retirement

funds, medical aid funds, collective investment schemes and hedge funds.

“At the heart of Curo is our relentless drive to take care of, look after and effectively manage the investment administration of our clients.”

EXCELLENCE PAST AND PRESENT

Curo has long been at odds with the desire on the part of many new entrants into the market to bundle fund administration services in along with their core offerings, and has resolutely maintained its singular focus in order to remain the obvious choice. “We believe it’s hard for an organisation to be world-class with a diluted focus,” it explains. “Our resolve has strengthened to continue providing brilliant fund administration services at exceptional value, as we have done for all our valued clients.”

From its acquisition back in 2012 by the two financial services heavyweights of Sanlam and Old Mutual, Curo was swiftly set up as a fund administrator before experiencing a remarkable rise

to prominence in the South African space, eclipsing two trillion rand in assets under administration within its inaugural two years and holding more than 30% of the country’s top asset mangers as clients by 2015.

A culture of success that bleeds right through the organisation to this day, last year Curo once again achieved Top Employer status, confirming its place among the ranks of companies who have successfully negotiated the exacting global best practice certification process to achieve this accolade. The Top Employer Institute has certified nearly 2000 companies in 120 countries globally, and Curo now joins a select group of fewer than 100 South African businesses similarly certified.

“It is a satisfying achievement for Curo to be part of the global community of organisations to be certified as a ‘Top Employer’,” confirmed HR Executive Mandla Dlova, “as it affirms our strategic progress towards excellence in the conditions and opportunities created for our people. The Top Employer assessment and associated Certification forms part of our strategic Human Resource Management initiatives, designed to enhance our employee offering using distinctive insights aligned to the world’s best HR practices and developments.

“Such initiatives support our aim of remaining an employer of choice in our industry.”

“AT THE HEART OF CURO IS OUR RELENTLESS DRIVE TO TAKE CARE OF, LOOK AFTER AND EFFECTIVELY MANAGE THE INVESTMENT ADMINISTRATION OF OUR CLIENTS”

INDUSTRY FOCUS: INVESTMENTS

Phase one of Curo’s complete office revamp and overhaul, completed last April, plays a vital role in breathing new life into the space occupied by the business since 2005. More than this, it ensures that those staff of whom it is famed for taking such good care continue to enjoy the very utmost in professional surroundings and environment. The revamp project forms part of the broader business strategy of a hybrid office model, with the first phase entailing the creation of a new reception and guest waiting area, boardroom, meeting rooms and a project room.

“We have done well to progress through the Covid-19 lockdown and, in some areas, have made use of the time to capitalise on the period by

fast-tracking future-forward aspects of our business,” outlined Darren Botha, Business Development Executive, with the move to a hybrid office model a crowning glory amid numerous such initiatives. “Through this revamp, the model has been extended into our office space to re-orientate our physical workspace to align with our company vision, mission and values and, indeed, our future.”

EMBRACING DIGITAL LANDSCAPE

Curo is as good as synonymous with technology, and its astute application. “Coupled with expertise, it means that we are geared to support the fast-paced investment industry,” the company explains. South Africa has itself for a long time been at the forefront

of digitisation and collaboration, and both have been integral parts of Curo’s strategy throughout its lifetime. “We are in the process of overhauling processes, removing unnecessary human intervention and reducing risk,” Botha reveals.

“Technology is an important aspect of our business so we are introducing high levels of automation, seamless processing and integration between front and back office.” The innovation, creativity and drive to create value abundantly evident at Curo was recognised last year at the Global Business Outlook awards as it brought home the coveted Best Use of Technology in Fund Administration prize. “Our mission is to enhance consumers’ financial dreams and goals,” summated Botha, “by providing our clients with reliable services through innovative means and domain expertise.”

These multitude factors converge to see new MD and CEO Lance Jacobs

“WE ARE IN THE PROCESS OF OVERHAULING PROCESSES, REMOVING UNNECESSARY HUMAN INTERVENTION AND REDUCING RISK”

take up post at the perfect time to drive this mission, already having proven instrumental in improving service standards within Curo, and creating a formidable team, centrally focused on the customer and delivery. As the executive responsible for all aspects of operations, client services and operational technology, furthermore, in close collaboration with colleagues Lance has been behind the concerted and ambitious push to digitise and modernise the Curo administration platform.

Market developments and the impact of COVID-19 have accelerated the digitalisation of currencies, markets and societies in general, and Curo is at arguably the zenith of its own

digitalisation journey. Completing the first phase migration of funds from its five legacy systems, banking software company Temenos announced last year that Curo Fund Services had gone live with Temenos Multifonds Global Accounting platform.

The move transformed Curo’s operating model, simplifying its architecture and enabling more automated exception-based processing to increase efficiencies, reduce costs and open up new opportunities for growth. “Two years ago, we started a partnership with international industry leader Temenos to move funds to a new accounting platform,” concludes Botha. “We are in the process of migrating more

than 3000 funds from our legacy fund accounting platforms to a single global accounting platform which we have branded the Atlas Platform.

“We view this technology platform not just through the traditional lens of efficiency and cost, but the future opportunities it can create by facilitating entry into new markets, new and innovative services and new business opportunities. The switch further helps to provide cost effectiveness and delivery of quality, best-in-class services for clients.

“It’s undeniable that the future is indeed digital,” Botha closes. “While some form of technological intervention has always been around, more and more, intelligent automation is changing the landscape for many investment industry businesses.”

“INTELLIGENT AUTOMATION IS CHANGING THE LANDSCAPE FOR MANY INVESTMENT INDUSTRY BUSINESSES”

DBSA

IGNITING SUSTAINABLE DEVELOPMENT AND TRANSFORMATIVE CHANGE

For the Development Bank of South Africa (DBSA) sustainability is at the forefront, as it promotes economic growth in South Africa and across sub-Saharan Africa. In the current push for net zero its commitment is borne out in multiple ways, with massive investments in key programmes and tireless support of a low-carbon economy fulfilling its central role in driving a just transition.

PRODUCTION: Timothy Reeder

INDUSTRY FOCUS: SUSTAINABILITY

Our purpose,” explains the DBSA, “is to build Africa’s prosperity by driving inclusive growth and securing innovative solutions that drive socio-economic development in emerging economies in sub-Saharan Africa.” The company fulfils this ambitious mandate by first mobilising funding resources, and subsequently channelling these into projects aimed at building sustainable infrastructure planning and development across the continent.

Among the leading African Development Finance Institutions (DFIs), the DBSA was established in 1983 with primary focus areas of energy, water, transport and telecommunications, as well as interests in health and education. “We aim to deliver impactful development finance solutions that ignite transformative change in South Africa and on the rest of the continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact,” the DBSA details.

“We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity development.”

INVESTMENTS PAY OFF

Having amassed more than three decades of experience in driving transformational change for different types of infrastructure development, the DBSA is now partner of choice for some of the continent’s most impactful development projects. In June last year came the conclusion of two loan facility agreements between Trans-Caledon Tunnel Authority (TCTA) and the DBSA, totalling R5.5 billion and spanning 20 years, to spark the implementation of Phase II of the Lesotho Highlands Water Project (LHWP).

The investment was negotiated with the five major banks in South Africa for a total of over R15 billion, with the DBSA’s funding to be used for new infrastructure development

integral in ensuring water security across South Africa.

With significance beyond the benefit to the overall Vaal River System, the transaction strengthens the ongoing cooperation between these two influential parties, furthering their mutual water infrastructure mandates, while with water and sanitation representing one of the DBSA’s key focus sectors, the deal serves to significantly bolster its loan book. It in turn allows TCTA to

“OUR FUTUREFOCUSED STRATEGY IS REINFORCING THE RESILIENCE AND RELEVANCE OF THE DBSA IN A WORLD OF DISRUPTION AND CHANGE”

fulfil its flagship role as a bulk water infrastructure implementing and national funding agency of the South African government.

“This is a significant transaction and as the DBSA, we are proud to be instrumental in the continued implementation of this historical

and highly developmental project for both South Africa and Lesotho,” acknowledged Zodwa Mbele, DBSA Group Executive. “The anticipated economic shift speaks to significant combined GDP impact of about R245 billion in the two countries, additional water supply to support about 60% of the South African economy and incremental royalties to the Kingdom of Lesotho, which are key to its fiscus and national economy.”

Now in its ninth month of construction, the 100MW Redstone monolith is a concentrated solar thermal power (CSP) plant forming a fundamental part of the South African Renewable Energy Independent Power Producer (REIPP) Procurement Program. Its backing, to a total of R11.6 billion, also makes it the largest renewable energy investment in

South Africa to date, with the DBSA’s commitments totalling R1.91billion - R1.5 billion in senior debt and R410 million in equity-linked funding.

Redstone CSP will power 200,000 households with clean and reliable electricity upon completion and offset an estimated 440 metric tons of CO2 emissions per year; it has now notched up a crucial milestone in the form of its first debt drawdown, securing in the region of $152 million and further solidifying the commercial viability of CSP technology in enhancing clean energy generation.

“The African Development Bank is privileged and proud to play the MLA and Coordinating Bank’s role for this largest renewable project in South Africa alongside our partners ABSA, CDC, DBSA, DEG, FMO, Investec, Nedbank, and Sanlam,” resumed

TAKING YOUR PROJECTS TO NEW HEIGHTS

With over 38 years’ experience in civil, structural, municipal and township engineering services, Infraconsult aims to be the preferred civil engineering consulting firm for public and private sector clients across southern Africa.

As your Proudly South African infrastructure design and support link, the company strives to do the right thing, the first time.

Infraconsult Engineering is honoured and proud to be associated with the Development Bank of South Africa as a preferred Professional Service Provider. We truly appreciate the high level of professionalism and efficiency with which the DBSA as a Client Body executes and implements its projects.

Highly qualified, highly skilled and highly competent

“AS A LEADING DFI IN THE REGION, THE DBSA IS WELL PLACED TO ENSURE THAT A TRANSITION TO A NET ZERO TARGET IS A JUST TRANSITION”

INDUSTRY FOCUS: SUSTAINABILITY

Director General of the Southern African Region Leila Mokaddem.

“It reflects our shared objectives of supporting the energy transition to address the threat of climate change across Africa.”

JUST TRANSITION COMMITMENT

In all that it does, the DBSA evinces its commitment, through activities and initiatives that contribute towards the global greenhouse emissions target, to playing an active role in the transition to net zero by 2050. “We are developing an integrated sustainability approach,” the DBSA outlines. “As a leading DFI in the region, the DBSA is well placed to ensure that a transition to a net zero target is a Just Transition.”

Providing transition finance, while eschewing new fossil fuel investments not part of a clear and unambiguous plan to a decarbonised future, is key here. Exemplifying this is the DBSA’s

Green Fund, instituted to contribute towards a wide range of goals in transitioning to a greener economy. These include the financing of projects and programmes that reduce the impact on climate change and favouring high-impact, innovative, low-carbon, inclusive programmes.

“The DBSA has made a concerted effort to address climate change and contribute to the broader lowcarbon aspirations of South Africa and the rest of Africa by supporting and investing in initiatives aimed at climate change mitigation and adaptation. The DBSA was instrumental

in the development of the Renewable Energy Independent Power Producers Programme (REIPPP) by funding the establishment and administration of the Independent Power Producer Office resulting in investments of over R200 billion and the creation of 50,000 jobs in the REIPPP.”

A solid set of results for the financial year ending 31 March 2021,

in the face of the havoc wreaked by the COVID-19 pandemic, kept the DBSA firmly on course to pursue its growth strategy designed to augment disbursements through emphasis on its catalytic role. “This is aimed at contributing to sustainable infrastructure development beyond the confines of its own balance sheet,” the bank stressed.

“Our continued success hinges on our ability to grow developmental impact using our own balance sheet and partnering with others,” assessed Patrick Dlamini, DBSA CEO. “The bank has a healthy pipeline of projects that form a solid springboard for success in the future and we will continue to focus on disbursing to infrastructure projects to grow developmental impact in line with our mandate.”

The DBSA saw net profit for the year increase by 182% from approximately R504m in the prior year

to R1.4 billion in 2021, attributed to the core lending activities of the bank. Solid growth in net interest income amounted to 11% compared to the prior year and an 8% improvement in operating income to R5.1 billion for 2021. Significant adjustments to accommodate the impact of COVID-19 also allowed impairment charges to reduce by 68% compared to 2020.

“We are operating in a rapidly transitioning world,” Dlamini sums up, “and the DBSA is mindful of how this impacts the sustainability of our business. Consequently, our futurefocused strategy is reinforcing the resilience and relevance of the bank in a world of disruption and change.”

“WE WILL CONTINUE TO FOCUS ON DISBURSING TO INFRASTRUCTURE PROJECTS TO GROW DEVELOPMENTAL IMPACT IN LINE WITH OUR MANDATE”

PHENOMENAL

PEOPLE PUSH CARRICK PAST PANDEMIC

PRODUCTION: Manelesi Dumasi

Carrick Wealth is a leading African financial advisory business with a range of important services that help clients secure, nurture, and grow their financial ecosystem. By taking a positive approach to the market during the pandemic, this is a business that has consistently delivered returns.

INDUSTRY FOCUS: WEALTH MANAGEMENT

After a devastating economic blow, dealt by the Covid-19 pandemic, South Africa is regaining GDP and clawing back fiscal position in the toughest conditions of a lifetime. In 2020’s second quarter, GDP sat at a total of R947 billion, falling from R1.147 billion in the first quarter. But, in quarter two of 2021 the country’s GDP was back to R1.131 billion. Economists expect further improvement through 2022, but major growth is unlikely, and prior to the meltdown, the economy was already weak. For investors, those looking for real returns, and people searching for ways to nurture their wealth, being exposed to South Africa alone remains a major risk.

In November 2018, financial advisory business, Carrick Wealth, was formulating a plan to offer offshore investment opportunities as a key product to their clients. Even then, there was a nervousness about having all assets in South Africa following years of unsteady politics and economics.

CEO and Founder, Craig Featherby explained that the boutique business was growing strongly and preparing for major expansion.

But with the catastrophe that has been the pandemic, Featherby has been forced to re-strategise and re-evaluate. New ideas and new offerings have been developed, and offshoring has been formalised. Enterprise Africa asks Featherby again about the company’s prospects. With so much money wiped from the economy, you may think he would be downbeat, but this entrepreneur and his highly experienced and innovative team are buoyant and confident. “It

has been a whirlwind,” he smiles.

“The relatively sudden onset of the pandemic and lockdowns came as a worrying curveball, there is no denying it. I spent a few days in my home office in March 2020 chewing over the new circumstances and deliberating on the ‘what now?’. It became clear that there were two choices available to us, and only one was an option. We could wrap ourselves up in cotton wool and hope that we were resilient enough to survive, without taking any steps to adapt. That approach was simply not viable - in South Africa, Covid has had a devastating effect on SMEs, with 38% going out of business. The other option, and the choice we took, was to ‘throw the kitchen sink at it’.”

The highly successful business, established in 2014 and home to more than 120 employees in South Africa, was forced to shift and adapt. A restructure of its model, installation of new management principles, clearing out distractions, and refocussing of the brand allowed Carrick Wealth to achieve strong results. Featherby was relieved and cites the establishment of new offerings as a major contributor to the company’s success over the past two years.

“One is an international property investment company that assists clients in purchasing buy-to-let properties in the UK, France and CEO and

Founder, Craig Featherby

Mauritius. That is Carrick Property, and it has done really well. We then launched Carrick Consult which helps clients to manage their estate planning. We understand that we are in the largest trans-generational wealth transfer in the history of mankind. There is more money than ever being transferred from parents to children and then to the next generation and we need to make sure our clients have robust structures for that. We also started our own asset management business in partnership with an existing investment manager here in South Africa –LNKD Investment Managers. That has performed exceptionally well and provided stunning returns for our clients. Lastly, we started a company called Carrick Partners which is a financial advisory network. There are various challenges advisories face including the ever-rising cost of doing business, eating into margins. Carrick Partners provides a range of financial services under the Carrick brand that assists with everything from operational support to administration, marketing and much more.”

PHENOMENAL RETURNS

As the pandemic challenged financial positions for many, a relationship with a financial advisor became more valuable than ever. Understanding risks and actively managing portfolios allowed the company to deliver results for clients. “We have generated phenomenal returns for our clients and that is what it’s all about. We must and will keep going, whatever the circumstances,” says Featherby.

Continued success has allowed Carrick to open new offices in Gqeberha and Pretoria, and this has fuelled further growth. “The business has had a staggering 40% year-on-year growth since we started in terms of revenue, profit and assets,” details Featherby.

After 2020’s worries, 2021 was altogether different. Of course, Covid remained a concern, but Carrick Wealth was driving a reinvigoration.

“In 2021, we launched what we call Carrick 2.0, or the next chapter. We felt that as a business, we had reached a certain ceiling and we needed to go to the next level,” explains Featherby. “We needed to identify how we would differentiate ourselves in the market and we realised that we can’t differentiate based on product. We chose a concept around hospitality and put that at the forefront of everything we do. The definition of hospitality in our eyes is ‘how do we make our clients feel’. In South Africa, a lot of people

are under a lot of pressure and when they look to a financial advisor, they’re not necessarily only looking for solid, transparent, professional advice. They are potentially looking for a partner and a long-term relationship. We want to be financially married to our clients, providing the enduring support, commitment, and dedication one does in a cherished relationship.”

By fostering these deep relationships and going above and beyond in terms of returns, the company managed to eclipse even its own high expectations for growth figures.

“ WE SEE OURSELVES REMAINING IN AFRICA – WE ARE AN AFRICAN BUSINESS. WE ARE OWNED BY AFRICANS

INDUSTRY FOCUS: WEALTH MANAGEMENT

“We did exceptionally well in 2021 and by the end of October we were 145% up on 2020. We have had incredible growth since our founding, and we are above all current rates so that is great. We are hoping to realise a finish to 2021 of 150-155% up on 2020,” Featherby celebrates.

AFRICAN OPERATION

With successful operations developed to diversify client wealth in terms of geographic location, Featherby is quick to remind that this remains a very African operation and will always call the continent home.

“In terms of the future, we see ourselves remaining in Africa – we are an African business. We are owned by Africans and the majority of our clients are Africans. We have operations in Botswana, Zimbabwe, Malawi, and we have international operations in the UK and Mauritius.”

A route-to-market has been developed in 17 other African countries, and license applications are being secured in Zambia and Kenya. In East Africa (likely Uganda, Tanzania, Rwanda and Ethiopia), Carrick will aim for offices to create operations that replicate the success of the South African business.

“We see further opportunities in Africa with an African family office based in Jersey, Channel Islands. Concentrating on ultra-high net worth individuals who have between US$10 and US$30 million investable assets but who don’t necessarily qualify for the traditional family office offerings out of Switzerland or other European countries. They are rarely regarded as an institutional customer, and we think there are massive opportunities in Africa for that.

“We have created lots of opportunities to grow outside of Africa, but we stick to our knitting. We know who and what we are, and we know the model in Africa. We believe Africa is what the Far East was 25 years ago and we feel there is enormous opportunity here. We have an underlying goal over the next five years to change the lives of 100,000 African families by offering superior financial advice.”

In order to serve African clients that have moved away from the continent, Carrick Wealth now has a fully-fledged office in Fulham, London. Designed to service clients onboarded in Africa but active in the UK, this office brings a full suite of services to those that have emigrated or may be spending extended periods in a new financial environment.

TROPHY HAUL

Developing brand-Carrick is a continuous process. A truly never-ending task for any business, nurturing the brand is something that the Carrick exec team is hot on. In 2020, the company was voted by a large international advisory

“WE HAVE ACHIEVED SUCCESS AND WON SOME FANTASTIC AWARDS AND THAT COMES DOWN TO THE PEOPLE WE HAVE IN THE BUSINESS”

Carrick Wealth Directors

board – International Advisor – as the top financial advisory firm in South Africa. In 2021, Carrick celebrated again after being awarded Excellence in Advisory Best Practice in Africa by International Investment. This streak of success has helped instil further equity in the brand and Featherby puts it down to the team.

“We have achieved success and won some fantastic awards and that comes down to the people we have in the business. We have a brilliant group of around 221 people within the organisation, many of whom have been here since day one. There is a remarkable executive team who do the majority of the heavy lifting, but we have amazing people throughout the company who collectively make this the great business that it is.”

This people focus continues externally through Carrick|Impact, a new philanthropic division designed around supporting charitable, uplifting, enriching causes but with clear measurement of influence.

In 2013, Featherby and business partner Mike Fannin started a charity which was very successful and eventually became formalised within the Carrick business. But the pair were

keen for clear information on how donations were utilised.

“A lot of the time, there is no measurement within charities and people’s investment can go unnoticed. Carrick|Impact provides a quarterly impact report that clearly reflects how your investment into a chosen charity has performed and how much of an impact you are making on society. The goal is to continue with philanthropic endeavours in all of the countries we operate in, and we would like to roll this out across third-party companies and go to them with advice on all CSR initiatives.”

Internally, displaying its commitment to people, Carrick Wealth retained all personnel throughout the pandemic. No one took a pay cut, no one was retrenched, and no one was asked to change their package or the hours that they worked. The measurement of this investment? A positive future outlook.

“We are proud of that,” says Featherby. “We have managed to stick to our core fundamental values as a business and we have managed to look after our team throughout the pandemic and the associated lockdowns.

“Things are exciting, and we are aware that we are fortunate. We must

think about technology and how we can incorporate that into the business, but it is key that we strike the right balance between technology and people. We also have to remain patient and remain humble, that is of major importance.”

This patience and humbleness has helped Carrick to come through where others have fallen away. Not only has the company survived, it has thrived, picking up awards and delivering returns, but most importantly, retaining a culture of excellence and a team of industry leaders. For Featherby, the importance of quality financial advice is now more important than ever.

“Financial advice is such a fundamentally important aspect of someone’s life. We help clients make some critically important decisions. The reality is that if we get things wrong, it can ruin people’s livelihoods. We must get things right all of the time, not just 95% of the time. That is why the calibre of one’s team is vital,” he concludes.

Flexibility, convenience and rewards… exclusively for your business.

Standard Bank Business Credit Cards not only offer flexible payment options, they help to simplify your business finances too. With a range of solutions designed to cater for everything from travel, forex and entertainment to procurement, fuel and even aviation expenses, you will be able to manage and control your company’s operational expenditure more efficiently – and more effectively. Benefits include:

• Up to 55 days’ interest-free credit

• Free travel insurance cover of up to R1 million

• International acceptance at more than 300 million merchants and 900 000 ATMs world-wide

• Detailed statements to facilitate your dealings with the South African Revenue Service and reduce the need to maintain a creditor’s book.

• Access to MasterCard Smart Data Online (SDOL) or Visa Intellilink, web-based expense management tools which allow you to manage and track your business expenditure.

• Easy card management via the Standard Bank App. You can activate your cards for international travel, stop a card if it gets lost or stolen and much more – all from your Smartphone or tablet.

Collect