IndustrySA - April 2014

APR

2014 ISSUE 20

Shaping the Future of SA Rail PRASA is investing heavily in upgrades and developments across South Africa’s entire rail network. With billions of Rand being spent every year, IndustrySA asks head of group communications, Moffet Mofokeng, where is all this money being spent?

Lucilla Booyzen

Defy Appliances

BRINGING YOU SAFW

COOKING UP A STORM

RMA

Williams Hunt

PROVIDING LIFESAVING COVER

DRIVING TOWARDS INCREASED MARKET SHARE

EDITOR’S PAGE

EDITOR Joe Forshaw SUB-EDITOR Harriet Pattison WRITERS Colin Chinery Tim Hands Roland Douglas Christian Jordan RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS James Clark Ajuanne Payne Emily Woodhall Hal Hutchison ADVERTISING SALES SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Holly Graham SALES EXECUTIVE Mark Leonard STUDIO STUDIO DIRECTOR Martyn Oakley ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman 2a Ardney Rise, Norwich, Norfolk, NR3 3QH, Unitied Kingdom If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 411568 or email info@industrysa.com

East Coast Promotions Ltd 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. Any resemblance to real persons, living or dead is purely coincidental. 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.

Welcome to issue twenty

We often talk about the business decisions that affect the future; financial planning for the year ahead, investment into new facilities, whether we operate in an eco-friendly manner; but all of these considerations would be irrelevant if we did not invest in our youth.

Yes, be it a good thing or not, young people are the future and they will take the reins of all industries at some point.

Fortunately for South Africa, the country has recently committed multiple resources to helping the youth as part of its Vision 2030, for example; two brand new universities Sol Plaatje University and the University of Mpumalanga, a R71million graduate placement programme and a new awards ceremony dedicated to businesspeople under the age of 35 – The Maverick Awards.

But what are you doing for the future? It’s an important question. Not just for family businesses looking for the next generation to take over, but for every business person around the country. It is vital that training is provided and young people are given the skills they will need to take on the leadership mantle in the future so this month we ask two of the country’s most prominent companies, Williams Hunt and Exxaro, and their Grootegeluk Mine, to find out what they are doing for the future.

Let us know how you deal with the youth. Do you embrace and offer assistance or do you try to opt for the more experienced when recruiting? Talk to us online @industry_sa or on Facebook – www.facebook.com/ECPindustrysa

Joe Forshaw

editor@industrysa.com

© East Coast Promotions Ltd 2014

APR 14 PAGE 3

CONTENTS

3 EDITOR’S PAGE Upskilling is the key

6 NEWS All that’s happening in South Africa 10 INNOVATION No place like home 12 ENTREPRENEUR Lighting up the catwalk

14 SOUTH AFRICAN FASHION WEEK Helping designers to grow

16 CASEY JEANNE One to watch

18 TERRENCE BRAY Locally made, globally recognised

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20

CONTENTS

74

27 PLASSER SOUTH AFRICA The reliable local partner

66 LUSAKA STOCK EXCHANGE Investing in Zambia 74 GROOTEGELUK MINE Ramping up and upskilling

32 MTN Innovating yes again

34 PBT SA

78 SWAKOP URANIUM One of Namibia’s most important developments

Do you have the time?

38 DIGITATA

82 AGCS Insurance designed for Africa

Leader in dynamic tarrifing

44 DEFY APPLIANCES

86 WILLIAMS HUNT

A brand you can rely on

On the road to increased market share

52 RAND MUTUAL ASSURANCE

92 PERI SA

Caring, compassionate, compensation

Who construction relies on

60 UBUNTU TECHNOLOGIES On cloud nine after new appointments

96 NECSA

COMPANY REPORTS

20 PRASA Investing in a big way

Understanding nuclear

APR 14 PAGE 5

NEWS All that’s happening in South Africa

Marriot hotels expanding further into Africa

image - Protea Hotels

One of the largest hotel companies in the Middle East and Africa, Marriot International, have plans to expand further into African markets. Marriott International is in the process of completing its R2.02 billion acquisition of South Africa’s Protea Hospitality Holdings.

The new Protea portfolio will make Marriott International Africa’s biggest hotel company by the number of rooms in operation or under construction.

The Protea development will consist of over 10,000 rooms in seven African countries, including nearly

PAGE 6 APR 14

80 hotels in South Africa and 37 hotels in African countries including, Malawi, Namibia, Nigeria, Tanzania, Uganda and Zambia.

Alex Kyriakidis, Marriot’s president for the Middle East and Africa told Bloomberg news agency: “We have 25 Marriott brand hotels under construction in seven countries in Africa that will come on stream over the next four years. With our existing hotels plus those in the pipeline and those Protea operates today, we will be in 16 countries in Africa by 2017.”

NEWS

On your bike!

The Gauteng Department of Roads and Transport are promoting people to use their bicycles and to walk rather than getting into their cars. This is in a bid to help reduce congestion on the roads and to both promote and create a cleaner and more sustainable city.

In an effort to promote this further, the Gauteng Department plan to distribute 3000 bicycles and to create 5km of cycle lanes in Vosloorus (east of Johannesburg) and 10km north of Johannesburg in Kaalfontein. The Department hope that this will help learners get to school more efficiently and safely.

Octavia Mamabolo, spokesperson for the Gauteng Department of Roads and Transport said: “The creation of a dedicated network of high-quality pedestrian and cycling routes will promote social integration among city residents. Integrating cycling at public transport nodes by making cycling cool through awareness

and mind-set change [would also help to promote integration].

“Amending relevant technical roads standards and planning requirements will also reduce road deaths, amounting to 40% of road fatalities, which occur at intersections and cost the public health system, police, traffic departments and third party claims to escalate.”

Plans also include the Johannesburg’s infrastructure roll-out programme in the township of Alexandra to integrate walking, cycling and public transport and to improve the pavements. There are also plans to have dedicated cycle paths and safe links to Rea Vaya Bus Rapid Transport system.

Mamabolo said the department acknowledged the need to shift to “a new paradigm and policy approach for making non-motorised transport a mode of choice for short distances as well as for recreation.”

APR 14 PAGE 7

NEWS All that’s happening in South Africa

The ladies golfer Lee-Anne Pace did it for the ladies this week by becoming the first woman to be named the country’s Golfer of the Year at the annual Compleat Golfer Awards, making South African golf history.

Pace has received one award after another when in 2013, she finished second place on the Ladies European Tour’s ISPS Handa Order of Merit and was named the Ladies European Tour’s Players’ Player of 2013 by her golfing peers. Pace also received this impressive distinction in 2010, alongside receiving a nomination for Sports Woman of the Year at the South African Sports Award and in addition, finished the year ranked number one golfer on the ladies European Tour after a watershed season which actually saw her share the award with Louis Oosthuizen, the Open champion.

Impressively, Pace has also received the Women’s Professional Golf Association (WPGA) Golfer of the Year award for a fourth year running. A fantastic start to her 2014 season on the opening Sunshine Ladies Tour. In three starts, Pace finished in the top five. Coming fourth at the Dimension Data Ladies Pro-Am, third in the Chase to the Investec Cup for Ladies at Glendower and finishing second at the SuperSport Challenge. With such a fantastic result, Pace has now qualified for the season-ending finale, which was limited to the top 10 available pros on the Order of Merit, and romped to a six-stroke victory in the Investec Cup for Ladies at Sun City.

Lee-Anne Pace

A good read An R11 million new library has been opened in the Ntamanana community in the uThungulu District of KwaZulu-Natal.

The library, which is a partnership between the department and the municipality, was officially opened by Ntombikayise Sibhidla-Saphetha, the KwaZulu-Natal Arts and Culture Department MEC, which will help to provide valuable resources for five schools in the area, two of which are high schools. It will also alleviate the provincial government’s plans to encourage reading in schools in order to help improve the province’s matric pass rate.

Speaking at the opening event, Sibhidla-Saphetha explained the benefits of this new project: “We are extremely proud of

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this project as it is an investment in our children’s future. The entire community will benefit from this initiative and it will help the area progress not only on a socio-economic level but also expose the people to facilities that can better their lives.”

Already, the library has over 600 members and has introduced a reading and writing club where community members can be taught to read and write in isiZulu. A children’s section, with books by Unisa and the University of Zululand, helps to encourage early childhood development.

With the addition of a free internet café, members are able to surf the web whilst enjoying a nice cup of coffee.

Sibhidla-Saphetha concludes the department will spend approximately R640,000 a year to maintain the library.

NEWS

A successful maths lesson A Centre of Excellence in Mathematical and Statistical Sciences has been launched at Wits University in Johannesburg. Since 2004, 14 centres have been introduced by the National Research Foundation and the Department of Science and Technology.

Each centre is designed to speed up the appropriate human resources and knowledge capacity to ensure that South African research remains competitive and at the forefront of discovery. Of the 14 centres, four are hosted by Wits University with another three at the centre in Strong Materials, the centre in Paleosciences and the centre in Biomedical Tuberculosis Research, co-hosted with the universities of Stellenbosch and Cape Town.

The new centre at Wits University will focus on Mathematics of the Earth and Environment and will also help to contribute to the Square Kilometre Array (SKA) initiative. A development, the university states: “From which we anticipate data analysis challenges unlike anything humankind has seen before.”

Professor Fazal Mahomed of the School of

Computational and Applied Mathematics at Wits University explains: “The centre promises to afford us a better understanding of complex, dynamic systems associated with the earth and environmental sciences and perhaps more importantly, a better understanding of how to develop a better understanding of such complex systems.”

Mahomed adds that the centre will be “bringing much-needed specialised attention to what are some of the most pressing issues of our time.”

At the launch of the new centre, Science and Technology Minister Derek Hanekom reiterated the integral importance of mathematics as “the spinal cord of science, engineering and technology development, and as such it is critical to South Africa’s national system of innovation and to our future as a competitive, knowledge-based economy.”

Hanekom places a great importance on the country’s National Development Plan (NDP), adding that it is vital in improving mathematics education from primary school right through to university.

Cornubia: the r25 billion housing project A R25 billion Cornubia Housing Project is launching in Durban, KwaZulu-Natal. The Department of Housing reveal Cornubia will be a mixed use and mixed income development and is expected to provide in access of 28,000 homes.

Once completed, it will include mixed income housing units, lights industrial factories, schools, various businesses and retail parks.

The development is located 15km south of the King Shaka International Airport between Phoenix, Ottawa and Waterloo. With an estimated time frame of 20 years, Cornubia is expected to alter the skyline of Umhlanga once complete.

The Cornubia project, a joint venture between the national Department of Human Settlements, the KwaZulu-Natal Department of Human Settlements,

eThekwini Metropolitan Municipality and Tongaat Hullet Development, is hoped to integrate the disparate communities to encourage future opportunities and add value.

Site of the Cornubia development © cornubia.co.za

APR 14 PAGE 9

INNOVATION

No place like home Editorial: Harriet Pattison

Constructed using 28 shipping containers, New Jerusalem is so much more than an orphanage, it’s a “five star hotel”. CEO, Anna Mojapelo explains…

Located in Midrand, the New Jerusalem Children’s Home was founded in 2000 by sisters, Anna and Phina Mojapelo. Set on a 26,000m² agricultural smallholding, the project is far more spectacular than most with the innovative design using 28 shipping containers for the infrastructure.

New Jerusalem Children’s Home CEO, Anna Mojapelo explains that she has no previous experience in design and that in fact, the New Jerusalem orphanage was her first project. She attributes the impressive design and development to 4D and A Architecture, the resident architects who designed the project.

Built on such an impressive scale, Mojapelo explains that her reasons for the project actually stem from “a divine calling.” With a growing number of children from the surrounding communities suffering with the challenges of HIV, abandonment and vulnerability, Mojapelo says “I thought I could do a better job, with mothering, nurturing and giving love to the children.”

Aurora Kwakwadi was the first child to New Jerusalem before many more followed. Now, with each container capable of housing up to 12 children, the orphanage has an impressive capacity of 80 children.

housing abandoned and vulnerable children in large containers.

Completed in 2011, worries were put aside with a magnificent end result. “It was a learning experience but it came out very beautifully and the children just love it,” says Mojapelo.

With each container creating a light and inviting space, the children now have a space to enjoy for themselves. “It has helped the children in a very positive way; they help with the cleaning and invite their friends. It has given them a sense of self-worth. It is beautiful to see the impact of the container on the children,” Mojapelo explains.

A BEAUTIFUL SPACE Each repurposed container has a “house parent” who helps to care for the children. A communal kitchen and dining area is shared between two containers and outside is a permaculture vegetable garden providing fresh and organically grown vegetables. “You can see the children have changed a lot. In the way the building has been designed, it contributes to the children and their upbringing” says Mojapelo. One child has even claimed the home to be their five star hotel; a sure testament to the incredible design, beautiful interior and homely feel it creates.

LESSONS IN SUSTAINABILITY INNOVATION AT ITS FINEST At first glance, it is difficult to imagine a shipping container as a home and inevitably, there were mixed emotions about

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It is essential that New Jerusalem not only provides support for these children but encourages a bright future too. Mojapelo explains: “It is our aim that when they leave, they don’t fall

INNOVATION

“When they leave the orphanage, they are ready for the world”

back into the system. We must start teaching them sustainable development and how to sustain yourself.” These lessons are vital and provide the children with a sense of self-esteem. “Before they were isolated but now that isolation has gone and they are part of the greater community,” says Mojapelo. The children are taught about sustainability in many ways, including the valuable use of rainwater. “We want the children to know they need to save and that we don’t have to waste” she says. Of course, these children have been shown the true value of recycling through their new home, “These containers can be used for children to live in, which is a beautiful thing” Mojapelo says.

The New Jerusalem Orphanage has brought a community together and encouraged involvement in recycling and harvesting. It has given the children a wonderful sense that they are making a difference. “If you remove the stigma of Aids, offence and vulnerability, people see that the children can think on their own and initiate projects,” says Mojapelo. “We walk hand in hand with the communities; we recycle cardboard, plastic and bottles. We have a recycle station so for those parents of the children who are unemployed, we can get them involved and engage with them so they can be part of saving and recycling.”

site. The eco-friendly centre “will provide our children and the surrounding community with a computer laboratory, library, toy library, afterschool homework classes, arts and crafts and career information for the youth and office administration for New Jerusalem.” The Resource Centre will impact about 500 to 1000 children and youth from New Jerusalem, Ivory Park, Kanana, Rabie Ridge and Mayibuye.

“We desire to make New Jerusalem Children’s Home a training and teaching centre for the surrounding community about energy saving, recycling, waste management and preserving our environment for future generation,” says Mojapelo.

With such encouragement and positivity at New Jerusalem for these children, it is clear there is a much deserved bright future on the horizon for them. “When they leave the orphanage, they are ready for the world,” concludes Mojapelo.

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A BRIGHT FUTURE After such a successful first project for Anna Mojapelo, she explains that they have now introduced The Resource Centre on

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ENTREPRENEUR

Lucilla Booyzen owns the South African catwalk Editorial: Harriet Pattison

A waking thought in February 1997 led to a reality just six months later. The launch of South African Fashion Week has seen the South African fashion industry come a very long way in just 16 years due to the inspirational and entrepreneurial spirit of Lucilla Booyzen.

Lucilla Booyzen, founder and director of South African Fashion Week, explains that despite her family having no involvement in the fashion industry, they were always fashion forward. “If I look back at what the women and the men wore - their jackets, shoes, dresses and handbags, I can tell that they had a sense of style that was not the norm in South Africa at that stage.”

Initially trained as a higher education teacher, Booyzen has now put these skills into the training and development of SA Fashion Week (SAFW) designers. Having worked as a model for five years and later launching her own fashion production company in 1984, Runway Productions, Booyzen is no stranger to the somewhat cut-throat industry of fashion.

As a show producer she travelled all over the world, to the glamorous fashion capitals of Paris and London to prestigious fashion events in Shanghai and Venice. Despite such an impressive background in both business and fashion, launching SAFW is undoubtedly an incredible accomplishment.

Booyzen explains that on her return from the established fashion capitals, who had succeeded in allowing designers to showcase their collections to buyers and the media, she felt that for South Africa to truly flourish as a fashion destination it needed its very own designer platform, its very own fashion

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week. “Of course SA was not ready to do something this brave, then, in February 1997 I woke up one morning and decided that the right time had arrived. We did the first fashion week 19th-22nd August 1997.”

Booyzen describes the launch in the Summer of ‘97 as “an incredible experience.”

“We erected a marquee in Nelson Mandela Square and to get the height that is required to do proper lighting, we lifted this marquee into one meter high drums. It was not Paris I can assure you, but we were very proud of our very first baby steps.”

SAFW has successfully provided a platform for South African designers to gain exposure, showcase their talents to the commercial and retail world and have direct access to buyers and the media. They have been given a truly fantastic opportunity of growing and building their business with confidence. Booyzen plays an active role in helping to nurture the designers from beginning to end and through introducing the Mentorship Programme she explains, “I would like to believe that it is one of the most important elements of growing an industry. The creative fashion design industry has so many facets that it is almost impossible to gain the knowledge without a mentor or mentorship programmes.

ENTREPRENEUR

Taking the young fashion design entrepreneur through all the steps from inspiration through to designing and editing a collection, costing, developing a marketing strategy to registering your business and then merchandising and retail is absolutely essential in SA.” To get an idea of the success generated from SAFW, during the first year publicity was valued at R600,000 and now, 16 years later, it is generating R114 million per annum. “We are creating new income streams for the designers all the time that for us is the single most important ‘to do’ at SAFW. Job creation is one of our main aims,” Booyzen says.

She explains that in order to ensure continued success, the designers need to understand the invaluable opportunities in the luxury and middle-market, rather than concentrating on one single client. It is vital that designers create new identities but remain individual with each new seasonal collection.

“Brands need continuity, fashion means constant change,”

says Booyzen.

It is clear to see why so many designers are succeeding at SAFW - the saying goes that behind a great pupil is an even greater teacher. Booyzen excels in teaching why the business aspect of designing is so vital to succeed and enthuses a passion of what this success could really mean for the South African fashion industry. “Designers need to take responsibility for their success because they have the power to create lots of jobs.

We want the creative fashion industry to play an active role in our economy,” she says.

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“We are creating new income streams for the designers all the time - that for us is the single most important ‘to do’ at the SAFW.” APR 14 PAGE 13

SOUTH AFRICAN FASHION WEEK

Success is in the air at SAFW

Editorial: Harriet Pattison

Following the first South African Fashion Week launching in the summer of 1997, the industry has continued to grow with new and established fashion designers making their mark. SA Fashion Week 2014 again attracted the best and brightest names in the business and, as usual, glitz and glamour was not in short supply.

Since its first show, running 19th-22nd August 1997, South African Fashion Week has gone from strength to strength, putting its stamp firmly on the global fashion map. Lucilla Booyzen, Director of SAFW, attributes much of this success to the nature of the designers, encouraging them to showcase their talents and build their business.

THE DESIGNER’S CAPSULE Designers at South African Fashion Week have achieved fantastic support and huge success over the last 16 years.

Exposure is integral so with the help of projects such as The Designer’s Capsule, it provides them with invaluable opportunities to interact with commercial and retail businesses.

The Designer’s Capsule is a turning point in South African fashion as it creates a direct commercial line for designers and provides much more accessibility for the public. Many other cities operate on a more business to business level during Fashion Week, only offering collections to the media and buyers. As a result, The Designer Capsule helps South African designers to grow their platform and successfully build their business.

SAFW POP-UP SHOP The Pop-up Shop is also a fantastic tool to be introduced at South African Fashion Week and provides an opportunity for designers to connect directly with the end consumer and build a relationship with them. It will allow them to interact with the media throughout Fashion Week to help market their brand and build an important database of both buyers and direct clients. It will also enable the designer to act as their own retailer, meaning they can keep the margin from wholesale to retail price.

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THE DESIGNERS This year SAFW S/S 14 is well under way, running 2nd - 8th April. The designers showcasing their collections offer a real mix from utter romanticism tailored with luxurious fabrics from Casey Jeanne, to the graceful elegance of Clive Rundle with his collection ‘Swan’, to the nostalgic inclinations of a summer evening by Terrence Bray.

“In the Creative Fashion Industry the Designers must all invent their own work and at the same time their own enterprise.

They must design and make clothes for everyday life and not just for important occasions which are increasingly few and far between and above all, we need to create a culture of excellence,” says Booyzen in the SAFW Annual Report. “Designing a specific product, creating new identities constantly season by season, is becoming more and more important” she adds.

The Buyers Lounge, which operates two days after Fashion Week, is another project allowing the designers to have direct access to buyers. It also provides research and access into new retail stores and encourages valuable buyer relationships.

LOOKING TO THE FUTURE With the introduction of these innovative projects, SAFW has provided designers in South Africa with many opportunities that previously would not have been available to them. All of the designers on show this year have received coveted accolades, some of the most valuable and prestigious available in Africa.

This highlights not only their evident talent but assures that their success is helping to create wealth and employment throughout many sectors and has the power to create a culture of excellence.

Booyzen explains: “Designers all need to take responsibility for their own future and success in business. They have the power to not only lead the country in fashion design but to create thousands of jobs.”

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SOUTH AFRICAN FASHION WEEK

APR 14 PAGE 15

CASEY JEANNE

Fashion to make the heart beat a little faster Editorial: Harriet Pattison Casey Jeanne has been called ‘one of South Africa’s leading young persons to watch’ and ‘one of South Africa’s leading emerging designers’. She has received numerous awards for her work and she is building a large fan base and long list of very satisfied clients. As one of the high-profile designers on show at SA Fashion Week, Casey tells IndustrySA that her journey in the fashion industry all stems from an experiment with her mother’s suit when she was just three years old!

Q: Can you remember the moment when you realised you wanted to be a fashion designer?

My fascination for fashion started when I was about three years old. I cut up one of my mums work suits, and I obviously thought it looked much better when I was done with it!

Q: What made you want to design your own bespoke bridal wear collection?

It all started for me in weddings in one December, a few days before my 19th birthday. On Christmas Eve my mum got engaged, and she kind of threw me in at the deep-end straight away with the wedding dress. I was about to go into my second year of Fashion and Textiles at the Durban University of Technology, and it was my ‘obligation’ to design and make this wedding dress. Well, needless to say I was stressed out of my mind and everyone thought I was crazy. So that was my first wedding dress, and it was a great learning experience for me. After doing about three more wedding gowns after that, I was completely hooked. Creating beautiful hand-made wedding gowns with gorgeous frothy tulles, French laces, magical embellishments… and custom designing each gown… is where I’m meant to be!

Q: There is a beautiful and romantic notion to your bridal designs, focusing on intricate detail. How long is the design making process for each dress?

The quality of each once-off gown is ensured by establishing a four to six month working partnership with every bride to develop a wedding dress that encapsulates her day. Once the sketch is done and fabrics are chosen, it generally takes three months of intricate hand work for each gown.

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Q: Your Spring Summer 2014 collection is based on the “Golden Era”. What is your inspiration behind this and does it often change for new collections and your bridal wear range?

I am focusing more on having a stronger connection between my new collections and the custom wedding gown part of my label. The inspiration behind my SS15 collection is back to the heart of what I love most. It is exceptionally sophisticated, with a focus on superior detailing and couture finishes. Think magic, rain drops, glistening of the dew of a fresh summer’s morning, fountains of love, travel, soft and delicate fabrics, illusion, surface embellishment and utter romanticism. It’s a contemporary collection on the “golden era”; with elements of luxury tailoring and evening wear with a cultured Hollywood feel and a glamorous sci-fi edge. Each piece is beautifully hand crafted, tells a story of inspiration and vision, and is made to make the heart beat a little faster.

Q: You are a part of Edgar’s X SAFW Designer Capsule, how important is this to you as a designer?

This is a great medium to grow in the retail aspect of the fashion industry. It’s great exposure and a huge learning experience!

Q: With a bright future for South African fashion, what is next for Casey Jeanne?

I am actually aiming to finish my Master’s degree within the next year, whilst growing the ‘Casey Jeanne’ brand and taking each opportunity as it comes. First and foremost, the next step is SA Fashion Week SS 14/15 collections.

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CASEY JEANNE

APR 14 PAGE 17

TERRENCE BRAY

Locally made, globally recognised Editorial: Joe Forshaw Terrence Bray began his career in the fashion industry in 1997. The Durban native has seen a meteoric rise to the forefront of the industry in South Africa and is now recognised on the global stage. British Vogue named him ‘The South African label to buy’ and South African GQ has also voted him ‘Most Outstanding Men’s Designer’. His multi-award winning designs make him one of the most sought after creators around and he is perhaps most well-known for dressing Charlene, Princess of Monaco. With much of the SA fashion world converging on the Rosebank Hotel in Johannesburg this month, it is certain that Terrence’s show will be one that no one will want to miss. He tells IndustrySA that he could not imagine ever doing anything apart from fashion…

Q: Tell us more about your history in the industry? When and how did you get started? What were the challenges when building the brand in the beginning?

I started in 1997, post graduating from Durban University of Technology, entering emerging designer competitions for media exposure and visibility. The challenges were mainly experience and the resources to start the business.

Q: What is the most difficult aspect of managing a successful fashion brand?

There are three difficult aspects; labour, skills and suppliers.

Q: What is the ultimate goal you would like to achieve in your career?

Time is my most valuable commodity and I would ultimately like that to realise its true value.

Q: What would you say has been your career highlight to date?

Showing in Europe and working with Giorgio Armani and Karl Lagerfeld at Chanel.

Q: Within the male and female sectors, is there a certain segment/demographic of the market that your designs are aimed at?

Not obviously, but I suppose true individuals.

Q: Is the industry in South Africa in a good place? Could the government do more to encourage growth in the industry?

Q: What is it like lecturing at DUT? What sort of reaction do you get from students during your talks? Is this something that you would like to do more of?

It is not great; the government could do more to harness potential but politics will always undermine our true potential. However, I am currently involved with eThekwini Municipality Business Support Unit that I believe will be a game changer.

It is a very valuable experience, I get very positive responses.

I love learning new things and teaching others what I know is a great way to learn. I am committed to education but unfortunately have no more time to dedicate to it than I currently am.

Q: Do events such as SA Fashion Week have a real impact on the market throughout the year?

Q: Where do your talents lay away from fashion? If you were not a designer, what would you be?

Yes for me personally but this impact is both positive and negative. The public need to be educated about the industry so we can be taken seriously.

I cannot imagine being anything else but I am very good with power tools and I love dancing and directing so take what you want from that combination.

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TERRENCE BRAY

APR 14 PAGE 19

COMPANY PROFILE

Revolutionising train travel across the nation Editorial: Christian Jordan Production: Chris Bolderstone

The Passenger Rail Agency of South Africa is spending vast amounts of money, all over the country, developing and upgrading the busy railway network. With this spending comes job creation, skill development and economic growth. Head of group communications, Moffet Mofokeng speaks to IndustrySA and explains more about PRASA’s big plans for the future.

Back in December 2012, when the Passenger Rail Agency of South Africa (PRASA) announced it was to award a R51billion contract to Gibela Rail Transportation consortium (led by French company Alstom), a breath of fresh air was felt throughout the whole rail industry.

“The ageing fleet combined with rapidly growing passenger need has led PRASA to focus on scaling the rolling stock investment as part of a broader strategy to acquire modern technology to meet changing demands,” PRASA CEO, Lucky Montana said in a statement.

Montana added that the average age of the coaches used

by PRASA is 39 years and the life span of railway rolling stock is around 46 years on average.

So the time is clearly right for an upgrade and Gibela Rail Transportation, whose majority shareholder is

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Alstrom, was started from scratch with the purpose of revitalising the rail industry in South Africa.

The rolling stock fleet renewal programme consists of the purchase of 7224 electrical multiple units over a period of 20 years between 2015 and 2035.

This will not be a project where vast sums of money leave South Africa - far from it. Gibela is planning to invest in the South African market in a big way; creating jobs, upskilling people and using SA expertise.

“Gibela is building a factory to manufacture trains here in South Africa however; the first 20 of the trains will come from Lapa, Brazil. This is to ease pressure on the current trains which will have reached the end of their design life by this time,” says PRASA head of group communications, Moffet Mofokeng.

Back when the announcement of the contract award was first made, PRASA said that the first trains were expected

PRASA

to be delivered in 2015 and Mofokeng confirms that this is still the expectation.

“Everything is on track; the schedule hasn’t changed,” he says. “The trains will still be delivered here, on time, in 2015. Obviously we will undertake tests before we put people in the trains but 2015 is still the date and we are excited. The only thing that is outstanding is a letter from the government regarding financial close, and that will come anytime. On our side, we have done everything we can do to complete all the paperwork within the timeframes that were set out.”

BRIDGE CITY Away from upgrading trains, PRASA has also set its sights on developing the country’s whole railway network.

Stations, tracks, technology and signalling equipment are all set to get an overhaul, bringing them up to date and in

line with similar international stations.

“Stations will be fitted with state-of-the-art access/ ticketing control gates, electronic display boards for train schedules, electronic customer help points, CCTV cameras and public address systems, including the securitisation of station environments and rail corridors through re-fencing and walling,” said Montana.

One of the most recent projects, finished in February, is the Bridge City station development near Durban.

The R1.3 billion project is part of the Bridge City Rail link project which was originally proposed in 2001 with approximately 60 hectares of high density mixed use development.

“The trains are moving there now, everything is working. It connects the communities of Ntuzuma and KwaMashu to the economic hubs of the region,” says Mofokeng.

APR 14 PAGE 21

COMPANY PROFILE

© General Motors -1916 Chevrolet 490 “It is a beautiful station. The train station is underground and has a shopping centre on top. On top of the shops is a block of flats so people live and work around the station every day.”

Lucky Montana said that the Bridge City project would improve people’s access to public transport.

“The Bridge City project is part of PRASA’s overall integrated approach to passenger rail service, in bringing communities closer to integrated public transport solutions, investing in the modernisation of passenger rail services and positioning rail as the backbone for public transport,” he said in a statement.

“The trains will still be delivered here, on time, in 2015” The Bridge City line ties in with the existing multiuse rail line at Duffs Road station along with the new train turnaround facilities at Dalbridge, south of Durban.

The ties will ensure operational integration with the north-south rail corridor which is part of the overall infrastructure modernisation programme in preparation for new rolling stock.

However, it’s not just Bridge City where planned

PAGE 22 APR 14

improvements are being realised.

“We are refurbishing many stations, doing everything from making sure toilets are clean and that the doors close properly to fitting new announcement equipment. All of this is in preparation for the new trains; we really are transforming all of PRASA,” explains Mofokeng.

“We are doing some platform corrections. This is where the platform and the train are not aligned and we step in to correct that.

“We are opening a new station in Mamelodi. The development has cost around R432million and will open on April 9th. It’s called Greenview rail extension and we are doubling the track there,” he says.

GOOD NEWS FOR COMMUTERS There are four major upgrade projects under way right now, all at different stages, which PRASA has implemented in order to plan for future growth and expansion of the rail commuter network. Montana said at the annual Africa Rail exhibition back in 2012 that these projects would “ensure the system is extended to reach areas that have developed away from the existing rail network. Projects are focused on marginalised communities, deprived of affordable public transport and access to economic opportunities.”

Mofokeng details some of the most exciting aspects of current developments.

WILLIAMS HUNT

PANDROL FASTCLIP is a switch on-switch o system which was developed in response to the growing need for fast, eďŹƒcient, low-cost track installation and reduced maintenance costs. The speed of application is instrumental for railways and contractors in setting new track records, time and time again.

Longest Heavy Haul track (2,000 kms, Saudi Arabia)

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T: +27 11 392 5061 E: info@pandrol.co.za W: www.pandrol.co.za MAR 14 PAGE 23

COMPANY PROFILE “We are planning the Etwatwa rail extension which will be an extension of around 10km with four or five new stations.

The estimated cost for this is R2.5billion.

“Another project is the linkage of King Shaka Airport and the north of Durban; places like Ballito where there are a lot of tourist homes and Dube Tradeport.

“Then we have the Cape Town International Rail Link. It will be about 4.5km from Cape Town to the airport station and the cost will be around R3.2billion. It will also link Belville, the northern suburbs and Metro South East. That plan is still in the pipeline. Nothing has changed as we speak.

We want to do it; it is definitely still part of the plan. We also have a similar plan in KZN for a link between King Shaka Airport and the centre of Durban.

“In the Eastern Cape, we have the Motherwell Rail Link project which will comprise around 17km of new track and around eight new stations. This project will cost around R1.5billion. There is already a line here but we want to connect it with others and make the system more efficient and easy for people to use.

“We are also extending the line from Nasrec to Baragwanath Hospital in Soweto. This will allow for a direct link between FNB Stadium and surrounding townships. It will benefit Aeroton, Orlando, Eldorado Park, the University of Johannesburg and the Potchefstroom corridor.

“In the Moloto area, along the Moloto rail corridor, there

PAGE 24 APR 14

are a lot of buses and there are a lot of accidents. The R573, Moloto Road, has suffered from systematic deterioration because of the movement of large numbers of people to metropolitan areas. Because of this, the department of transport has given the go-ahead to build a new railway line from the former homelands of KwaNdebele to Pretoria.

This will be a 113km development and is expected to cost R12billion, connecting Mpumalanga and Gauteng.

“We also have signalling projects around the country; in Durban with Bombardier, a R1.3billion project; in the Western Cape with Thales-Maziya, a R1.8billion project, and with Siemens in Gauteng, a R3.8billion project,” he says.

Montana said in a statement issued by Siemens: “The need for more effective train control is important as the number, speed, mass and length of the trains in Gauteng increase.”

Siemens said the signalling overhaul was the “first of its kind for South Africa”, involving the replacement of outdated technology - some of it dating back to the 1930s - with modern electronic systems.

“Key features of the upgrade include the introduction of electronic interlocking systems, the upgrade and/or building of new relay rooms, a brand new train detection system, overhead and track changes, and implementation of a customdesigned train control operating system across the entire Gauteng network,” the company said in a statement.

“Completion of the rail signalling project will see the

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COMPANY PROFILE Gauteng railway network aligned with modern urban rail networks across the world,” said Lucio Lefebvre, senior project manager at Siemens South Africa.

As for the Western Cape, Thales said in a statement: “This state-of-the-art signalling system will enable highly reliable operations and improved passenger services and comfort.”

Justice Tootla, Thales South Africa’s deputy chief executive officer said: “The provision of an integrated rail signalling system to the country’s Western Cape Province will ensure efficiency and reliable investments, contributing to a fast- developing continent.”

Government spending on rail infrastructure increased from 2007 in the build up to the 2010 FIFA World Cup and Montana says that the event served as “a catalyst for ongoing service and infrastructure improvements in the rail commuter system, but also ensured ongoing funding commitments to accelerate the recapitalisation of the urban rail system in South Africa.”

“This will be a 113km development and is expected to cost R12billion, connecting Mpumalanga and Gauteng” But where does all of this money come from?

Sometimes it seems as though PRASA has bottomless pockets but Mofokeng suggests that the company is taking steps to create wealth for itself, as per its secondary business objective.

“If you go anywhere in Europe you will see that the rail companies are using the properties at their disposal to create and generate wealth. For example, shops and restaurants can rent space from the rail company and they attract more people.

“This money can be used for the upkeep of the station and improvement of infrastructure and we are trying to do this more and more so we can rely less on the state in the future. We feel that this will help to make the travelling experience great for commuters,” he says.

COMMUNITY STANDING With all the money that PRASA spends it is easy for external parties to be impressed with what’s going on. The results are tangible and easy to measure – do the trains run on time, are the stations up to date and well kept, are the lines well maintained; an outsider can easily see outcomes from investment but what about internally? PRASA creates a vast number of job opportunities, attracts significant foreign investment into South Africa and drives infrastructure development which in turn pushes economic growth. So do the

PAGE 26 APR 14

more than 15,000 PRASA people really know how much of an impact they are having on the country? Mofokeng believes that they do.

“I think people do recognise the impact of PRASA on the country. The government has given recognition for the jobs that have been created and the industry has not seen the sort of investment that PRASA is now committed to so I think the rest of the sector recognises the importance of PRASA. “I like to think the general public realise our impact; people say ‘I’ve seen PRASA’s work – please let me come and work for PRASA’ and this in itself is recognition.”

And if the company was viewed in a positive light before, its standing looks set to increase even further as it tries to step up the fight against climate change - a key part of the rolling stock fleet renewal programme.

“We certainly want to encourage greener operations,” says Mofokeng. “The new trains will be lighter and consume less energy, becoming more efficient. They are all designed with this in mind.

“In South Africa, we have a lot of coal mines and power stations and the issues with climate change are very important for us. We do not want to leave the environment in a bad state for future generations so these things do matter.”

Come next year, we will see what effect the delivery of the new trains has on PRASA’s reputation as the rolling stock fleet renewal programme starts to become a reality. For now, Mofokeng says that PRASA is happy with the progress and excited for the future.

“We have many projects on-going and on the horizon,” he says. “It’s looking good and we are happy to be serving the people of South Africa. I personally cannot wait for the new trains to arrive; I’m over the moon with them.”

.

Check back to IndustrySA’s March 2013 edition for more information on PRASA’s rolling stock fleet renewal programme.

WILLIAMS HUNT

Local Partner of Plasser & Theurer for: Consulting and new machine sales Technical support Training Spare parts Major component overhaul and machine refurbishment Operating and maintenance agreements Contracting Plasser South Africa (Pty) Ltd | PO Box103, Maraisburg, 1700 | Tel: 011-761-2400 | info@plasser.co.za

APR 14 PAGE 27

Historic overview of mechanised track Maintenance to PRASA The history of railways in South Africa dates back to 1859 with the inauguration of the first railway line in market square Durban. On-track mechanised maintenance is much younger, dating back to only 1957 with the delivery of the first track maintenance machine to South Africa from Plasser & Theurer of Austria.

Figure 1: Plasser & Theurer VKR01; the First Tamping Machine in South Africa 1957

The Railways realised the benefits of mechanised maintenance during a long phase of growing railway infrastructure and rail traffic and must also have realised the benefits of having a good support structure for maintaining these machines since with the second order of machines from Plasser & Theurer, Plasser South Africa was established in 1959 to support the machines with technical expertise and components.

Since delivery of the first machines to South Africa, the advances in track maintenance and construction mechanisation technology from Plasser & Theurer was phenomenal. Machines were designed to produce higher production in leaps and bounds to satisfy the demand by the high traffic density lines. However, with high production and technology comes sophistication of all the systems used on these machines. From early days Plasser South Africa also produced the machines locally which increased their specialised knowledge of the machines and shaped highly trained and skilled artisans and technicians. From the beginning Plasser South Africa’s technicians and artisans were South Africans and till today, the skills and experience are based in South Africans.

Figure 2: Plasser & Theurer 09-4X Dynamic – Four Sleeper Continuous Action Tamping Machine The Highest Production Tamping Machine in the World

During the initial period of owning and maintaining the machines by the Railway, performance of the machines were not optimised which either necessitated additional machines to maintain the required tamping cycles or machine availability had to be improved.

Plasser South Africa was subsequently contracted in the 1960’s to maintain the machines by providing fitters to work full time on the machines alongside the operators that were provided by the railways. Due to the lack of synergy between the railway’s operator and the OEM’s fitter, optimum machine performance was still not achieved.

The next logical step was to contract to original equipment manufacturers (OEM) to operate and maintain the machines with high demands on performance and availability. Plasser South Africa was obliged to expand its operations to provide the high level of technical support that would be required to avoid the high penalties that became applicable for poor performance at the time.

In the 1970’s railways called for machines to be provided, operated and maintained by contractors, thereby transforming the machine market from railway owned to contractor owned and the Railway benefitting from the ‘no work no pay’ concept linked to production. It allowed the OEM to specialise and ensure that they keep their machines at very high levels of maintainability and technologically up to date whereas the Railways only paid a unit price for work carried out.

By 1997 the railways, including Metrorail (PRASA today), have completely outsourced their mechanised track maintenance activities. They generally no longer leased, hired or owned heavy on-track maintenance machines but

contracted the full service to contractors specialising in this area. The contractor supplied all the support functions around the machines, supplied their own diesel, flagmen, track masters, general workers etc.

This system is still in force.

Machine availability is today characterised by figures averaging at above 95% across Plasser South Africa’s fleet which has become an international benchmark.

There are various reasons why this contracting system proved to be so successful.

The Maintenance Contract: The current maintenance contract developed and improved over many years. In this contract the Railways take the risks in areas which they control and the contractor takes the risks which they control.

The contract incentivises availability and production. Higher production and availability therefore means a better income to the contractor and at the same time reduces the unit cost of maintenance to the railway.

Specialisation: Specialisation is the key to efficiency and creativity. Under a contracting arrangement, machine staff is optimised due to operating and maintenance staff working as one team and often have a dual function thereby avoiding split accountabilities. It is also in the contractor’s interest to creatively seek more efficient methods and processes to improve production and reduce downtime due to breakdowns or maintenance.

Economy of Scale: Mechanised track maintenance machinery is very capital intensive. The machines also work under severely harsh conditions and require constant maintenance and component replacements due to high levels of wear.

The machines work across South Africa and mostly far from any major towns or infrastructure. This is a logistical nightmare and requires a vast support infrastructure. Mechanised maintenance is hardly economically feasible unless it can rely on the economy of scale. A number of contractors have failed over the years due to the limited demand in Southern Africa. Plasser South Africa being a world leader in mechanised maintenance technology owns operates and maintains a large fleet of machines which allows it to share resources. This made the unit prices of track maintenance of the lowest known in the world.

Access to Global Experience: Plasser South Africa’s relationship with Plasser & Theurer provides South Africa with access to the vast experience, technical know-how and continuous technological progress made by the 18 international partner firms of Plasser & Theurer. Plasser South Africa uses this benefit to their advantage by continuously upgrading and updating their machines to improve reliability and availability.

Specialised Facilities: To support its machines and reduce costs, Plasser South Africa has specialised workshops to re-build or re-manufacture major components at competitive prices. These facilities are also used to locally manufacture or completely refurbish and upgrade machines to the latest standards and technology available in the world.

Technical Support: Mechanised track maintenance machines consist of sophisticated hydraulic and electronic circuits and are therefore an international challenge to achieve reasonable availability of the machines to ensure that production targets can be achieved so as to limit the number of maintenance windows and machines required.

Because the economy of scale allows it, Plasser South Africa supports its machines through various activities, systems and programmes by a dedicated team of experienced technicians. Even major components can be replaced on site as opposed to having the machine shipped to a workshop and thereby removing it from production for an extended period.

Figure 3: Major Components being Replaced Safely in the Field

Continuous Training: Operating and maintaining track maintenance machinery is specialised and not comparable to any other industry. Experienced machine operators, artisans and technicians are therefore not available on the labour market and have to undergo intensive training before they can work independently on a machine. The training is equally specialised which require Plasser South Africa to provide the training in-house in its own TETA accredited training facility in accordance with a formal curriculum for each category.

Spare Parts Holding: To ensure optimal availability and reliability of machines, Plasser South Africa holds a very large spares stock to ensure that breakdowns can be attended to immediately considering that the lead time for some major components is very long.

Plasser South Africa developed these skills, infrastructure and facilities due to market demands in South Africa, unlike its partner firms in the rest of the world who are purely manufacturers and suppliers of machines.

The valuable lessons learned in owning, operating and maintaining mechanised maintenance machinery over the past four decades will favourably benefit Plasser South Africa’s future customers due to the first-hand experience and the resulting expert advice the company will provide while still having the infrastructure which is second to none.

Plasser South Africa has adapted its business strategy to meet the new market demands and as the local partner of Plasser & Theurer Austria, provides the following services to owners and potential owners of Plasser machines: • Consulting And New Machine Sales • Technical Support • Training • Spare Parts • Major Component Overhaul And Machine Refurbishment • Operating And Maintenance Agreements

COMPANY PROFILE

Hard work and dedication pays off...

Editorial: Harriet Pattison Production: Chris Bolderstone

First featured in IndustrySA in August 2012, MTN have continued to succeed, innovate and remain a valuable brand in an industry which just keeps on growing. This month IndustrySA speaks to MTN SA CEO Zunaid Bulbulia about its unstoppable success.

Telecommunications is becoming one of the fastest growing sectors in South African economy, largely due to the exponential growth in cell phone usage and the gradual increase in broadband connectivity. With more and more people using mobile phones, internet accessibility on cell phones has dramatically changed connectivity across Africa. South Africa now has the most developed telecommunications network on the continent.

Globally we are seeing mobile phone usage grow at an unbelievable rate with more and more businesses relying on these devices to ensure the smooth running of their business and to stay connected in a world heavily focused on social media and networking. From 2000-2010, mobile phone use in South Africa increased from a mere 17% to a staggering 76%.

Almost 30 million South Africans now use a mobile phone, with only five million now using landline telephones. This

PAGE 32 APR 14

figure is more than both radio and TV usage in South Africa.

It is clear then why telecoms is not only one of the most important industries across South Africa but one of the most competitive. At the start of the year, IndustrySA featured the incredible growth of MTN South Africa (MTN SA) which topped the list of top South African brands in 2013 and was named as one of the top 500 most valuable brands in the world.

Founded in 1994, MTN has successfully changed the face of communications across Africa. CEO of MTN SA, Zunaid Bulbulia, attributes this impressive and continued success to the hard work and dedication of the staff; “It might seem like a clichĂŠ to say that a company is only as good as its people but we at MTN truly believe this. The telecommunications industry is one of the most competitive in the world and the South African marketplace is no different. Without our employees, there would be no awards and we would not be able to achieve the successes we have had to date. By being named one of the

MTN

top brands in the country shows the MTN leadership (and the staff) that our collective hard work is recognised in the South African market.”

The growth of telecommunications, not only in South Africa but globally, is increasing at a staggering pace as more and more businesses realise the potential of this industry. Bulbulia explains: “Given the connectedness of the world today, there certainly has been a fundamental shift in the market. As a way for people, businesses, and companies to engage and interact with one another, telecommunications provide the foundation.

Over the past two years, we have seen how mobile devices (both smartphones and tablets) have permeated virtually every facet of our society. It has also changed the African market with people having access to world-class network infrastructure bringing with it increased bandwidth and more competitive data rates.

“Telecommunications is vital for the empowerment of

people. Just look at how many entrepreneurs run their businesses from their mobile phones. Without a quality and reliable network, this would not be possible and economic growth would stagnate” he says.

STAYING CONNECTED MTN now operates in 21 countries across Africa and the Middle East. As a multi-national telecommunications group, MTN is nearing 200 million subscribers across operations that include, Botswana, Cyprus, Ghana, Nigeria, South Africa and Swaziland. One of four licensed mobile operators in South Africa, including Vodacom, Cell C and 8ta (a subsidiary of Telkom); MTN is leading the way in making international paths with over 100 million subscribers within these operations.

Undersea cables which link South Africa to the rest of the continues on page 37...

APR 14 PAGE 33

Do you have the time?

While time consuming business justifications are being put together for the next big BI project or technology acquisition, everybody seems to be missing the most important aspect and that is time or rather the lack thereof. People do not buy a fast food burger or drumstick because they like it – they buy it because they can have it in 2 minutes. Per second billing has replaced per minute billing since people no longer have the time for lengthy conversations.

Why would BI be any different? Yes, we are all aware of the importance of proper processes and procedures, redundancy and disaster recovery, but while all this is happening your business does not only change, but it is being devoured by your competitor. Agile arrived on the scene with a bang and even though many people would argue that it has not delivered on expectation it is mostly because it is being evaluated against incorrect criteria. Agile in its nature should have one key measurement and that is time.

When it involves BI we have been our own worst enemy.

The initial intention was for it to provide speedy insight to Executives in order for them to run their businesses more effectively. However, it did not take long before the value of an integrated data source was realised and suddenly, what was supposed to be a few executive dashboards, turned into thousands of operational reports.

Regulatory guidelines and financial principles also makes the accuracy of operational reports essential. As a result, highly skilled professionals spend weeks ensuring the quality of data. In the midst of this happening, BI starved Business Executives are left coveting the pot of gold at the end of the rainbow only to realise that they are actually funding the entire exercise from their own “pot of gold”.

“When I analyse my business and predict the future from millions of lines of data, the fact that ten lines are missing or one client has been duplicated, will have a negligible impact on the trend or prediction. I want answers and I want it quickly and if I have to apply the 80/20 rule where 20% of the data will tell me 80% of what I want to know and I can get to that information in days rather than months, I will take it anytime.”

Operational BI has its rightful place but has become the Achilles heel for securing budgets for future BI projects.

Executive BI done right will become a self-fulfilling prophecy since speedy delivery of information to leadership will ensure better management and higher profitability, which in turn will make available more money for other projects. It is, therefore, essential to divorce the concepts of operational BI and Executive BI. It is inevitable that the one will always follow the other but unless you draw the distinction, you will be serving both an injustice.

An answer not received today will become useless, since the question tomorrow will be different.

Armandè Kruger – Regional Sales Director, PBT Group

MTN ...continued from page 33 world are also underway, helping to create not only local internet access but a continued increase in mobile phone usage too. Despite this usage increase, data charges are decreasing and operators like MTN are seeing more subscribers as a result. One of these expansions is a 5000 km fibre optic cable network, being built by MTN, Vodacom and Neotel. It will provide connection to several major centres across South Africa. The first phase, commissioned in June 2010, links Gauteng with KwaZulu-Natal.

Previously, the Seacom Submarine fibre optic cable system that links South and East Africa to global networks via Europe and India was introduced in 2009. The West Africa Cable System, Africa’s largest capacity submarine fibre optic cable, links Southern and Western African countries with Europe.

This has raised South Africa’s broadband capacity to more than 500 Gigabits per second (Gbps). South Africa has further cable expansion plans which include a South Atlantic Express Cable that will run between South Africa, Angola and to Brazil, with onward connectivity to the USA. With an estimated cost of R3 billion, it will be the highest capacity cable to serve South Africa when it becomes operational later this year.

To help improve local connectivity, national and city-wide fibre optic cable networks are also in talks. The government, via the Department of Communications, wants to implement a National Broadband Network by 2020 to ensure universal access. The Western Cape also plans to connect the 4000 government facilities and every school in the province to a

broadband network and to further ensure IT facilities are readily available to the public.

MTN: TOP EMPLOYER MTN SA demonstrated its success once again when it won Top Employer for 2014, an accolade that is only offered to the best employers globally and those that provide employees with the highest standard of benefits.

MTN SA offer a wide range for its employees, including; company car and travel allowance, phone allowance, home internet connection, pension scheme and performancerelated bonuses. It also provides networking opportunities that are available through sporting events, online blogs and forums, social events and social media. Nearing 6000 employees, MTN SA are leading the way in development with numerous programmes to ensure the progress of each employee is optimised. Bulbulia explains, “MTN views each employee as a unique individual and provides in all their needs. As such, the corporate environment allows for significant personal growth and opportunities both in South Africa and abroad.”

MTN also offer the biggest graduate-development programme in the country, employing more than 200 technology graduates every year in addition to high performer programmes, job rotation opportunities, international exchanges and mentoring programmes for its employees. continues on page 41...

APR 14 PAGE 37

COMPANY PROFILE

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PAGE 38 APR 14

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APR 14 PAGE 39

COMPANY PROFILE

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PAGE 40 APR 14

MTN ...continued from page 37

MTN SA INNOVATION AWARD In March 2013, MTN SA won the Global Telecoms Business Award (GTB) for Wireless Network Infrastructure innovation.

This award is one for projects, rather than products and acknowledges excellence in collaboration between the operators and the vendors. Presented in London, it represents MTN SA’s successful implementation of cVidya’s MoneyMap Revenue Assurance Solution. CVidya is a leading provider of revenue analytical solutions for communications and digital service providers. Since its deployment in 2010, MTN SA have seen a return on the investment which has helped to improve billing accuracy, boosted revenue and the all-important, customer experience. MTN SA is expanding cVidya’s coverage to further revenue intelligence which will include new business lines and risk management.

MTN SWAZILAND MTN Swaziland, a subsidiary of MTN which has also been innovating recently, first began operating in September 1998.

In 1999, it launched a R4 million voicemail system, meeting the 12 month coverage obligation an impressive nine months ahead of schedule. MTN Swaziland continued to provide telecoms and in 2002, launched SMS and increased its coverage to 75%, creating R71 million in revenue for that year alone.

With nearly 300,000 internet users, Swaziland has seen a staggering increase with user numbers trebling since 2009

“Telecommunications is vital for the empowerment of people. Just look at how many entrepreneurs run their businesses from their mobile phones” when there was only 90,000 users. Swaziland Posts and Telecommunications Corporation (SPTC), the state owned operator, had, up until 2011, a stake in the country’s sole mobile network. Since then, the SPTC has transferred its stake into MTN and in 2011, MTN Swaziland received its 3G licence and the rights to its own network which resulted in an international gateway. MTN Swaziland are now the sole mobile provider of Swaziland with a mobile network coverage of over 70% of the geographical area, including many major business centres and is continuing to grow.

The mobile market penetration in Swaziland is high above the African average and although the subscriber rate has slowed, the average revenue per user is now the highest in Africa. Although MTN Swaziland has a well-developed fibre

optic network, prices have increased due to the reliance on neighbouring countries where international bandwidth is more expensive. With the introduction of localised submarine fibre optic cables being installed, however, MTN Swaziland are relying on these prices falling for its customers in due course.

PLS SPONSORSHIP RENEWAL In March of this year, MTN Swaziland renewed its sponsorship with the Premier League of Swaziland (PLS).

The company have been league sponsors since 2001 when it took over from Swaziland Beverages. MTN is in talks with the PLS about how they can improve and get more value from the football sponsorship. Under the current format as MTN Corporate Affairs Manager Mpumelelo Makhubu put it, the sponsorship package is E1,335,000 from which the champions pocket E770,000, which is inclusive of the E100,000 for CAF Champions League participation.

“It is true that we will be renewing our sponsorship for a year in the current format while we continue our engagements with the PLS,” confirmed Makhubu in the Times of Swaziland.

While the Manzini Wanderers won the first MTN league trophy, the Mbabane Swallows are the current reigning champions.

MTN FOUNDATION In addition to football sponsorship, MTN Swaziland have also encouraged public-private cooperation by donating three LG computers, printers and an internet dongle to Emhlangeni Primary School as part of the 21 Days of Y’ello Care campaign. This foundation was set up by MTN to give something back to each nation it operates in. For 21 days in the calendar year, MTN employees leave their normal work duties to help and get involved in community projects and areas where extra help is needed. MTN Swaziland also donated hygiene packs to 500 pupils at the Emhlangeni School and vegetable seeds to encourage its gardening project.

In 2010, MTN were awarded The Most Socially Responsible Company in a study conducted by First Principles for its inspirational community campaigns.

Secure investment in education in Swaziland is continually needed so philanthropic projects such as these, create a real community feel and continued customer support in MTN SA and MTN Swaziland.

Bulbulia explains the importance of maintaining this community feel and support to ensure the company’s subscriber base grows and continues to attract more customers. “Expansion is a core element of what we do but it is not just about the numbers. MTN is committed to giving back to the communities in which it operates. To this end, the work it is doing through the MTN SA Foundation

APR 14 PAGE 41

COMPANY PROFILE has become an integral component to the success (and expansion) of the organisation.

“Furthermore, we take great pride in developing innovative services and solutions for both our business and consumer customers that reflect their unique needs as well as the markets in which they live. This local understanding is interwoven into our corporate DNA.” Bulbulia concludes in explaining the importance of MTN employees in its Foundation campaigns.

“We believe that sharing the accomplishments of the organisation with its people is a fundamental part of the success of MTN. It serves to provide further impetus for employees to work hard, work with passion, and give back to the communities through our Foundation initiatives.”

FURTHER INNOVATION Being a highly innovative company, MTN surrounds itself with innovation and partner company Mobile Decisioning Africa (Mo-de) has provided just that. Mo-de provide mobile value added services to mobile network operators, like MTN. The company currently operates in 13 countries in Africa, launched only in 2010, Mo-de has already been awarded the IBM Global Entrepreneur of the Year in 2012 and was listed as one of the 2013 finalist for the African Awards for Entrepreneurship under the Outstanding and Mature Business Award category among other companies To help relieve the worry of running out of mobile credit, MTN Swaziland have introduced MTN Xtra Time. This allows existing pay-as-you-go customers the

option of an advance on their existing airtime before it runs out. Customers select an airtime amount, from E5 up to E50, by sending through a short USSD code which is then paid back when they next top up. This innovative service is a by-product of the collaboration between MTN and Mo-de and was awarded ‘Most Innovative Service’ at the 2013 AfricaCom Awards.

AN EXCITING FUTURE FOR MTN Looking to the future, the South African government have prioritised broadband access, saying in its 2014 manifesto: “We aim to connect all schools, public health and other government facilities through broadband by 2020, and at least 90% of our communities should have substantial and superfast broadband capacity by 2020. Government will support and develop free-Wi-Fi areas in cities, towns and rural areas. The local electronics sector and emerging entrepreneurs will be stimulated as part of our efforts to support the manufacturing industry.” Bulbulia explains the benefits of the government’s proposed plans and how they will benefit MTN in years to come.

“We are working with stakeholders in both private and public sectors to ensure that the connectivity requirements of all the citizens are met. In addition to developing cost-effective voice and data solutions, MTN is continuously upgrading its network to stay ahead of technology trends. For example, our ongoing efforts to roll out LTE while simultaneously improving 2G, 3G, and HSPA access is indicative of this passion and commitment to provide universal broadband access for all.”

.

Grain Silo

PAGE 42 APR 14

MTN

APR 14 PAGE 43

COMPANY PROFILE

‘You can rely on Defy’ Editorial: Christian Jordan Production: Ajuanne Payne

Defy Appliances has been leading the way in Southern Africa’s domestic appliances sector for many years. CEO, Hakan Kozan gives IndustrySA an insight into what keeps this pioneering organisation at the forefront of the industry…

Manufacturing is one of the country’s most important sectors and a significant driver of economic development. The sector has received huge support from the government and from the private sector and as a result has helped with the creation of jobs and the building of South Africa’s reputation in international markets.

While there are many sub-sectors of the manufacturing industry, each has a stand-out company; one which leads the way in terms of innovation, entrepreneurialism and business excellence. In the case of the domestic appliances sector, that company is Defy Appliances; an organisation that has been setting the standards for over 100 years.

As Southern Africa’s largest manufacturer and distributor of major domestic appliances, Defy certainly

PAGE 44 APR 14

knows its market. Supplying everything from stoves and ovens to refrigerators and air conditioners, Defy’s name is universally respected and its brand is extremely strong.

Sticking to its philosophy and slogan, ‘You can rely on Defy’, the business has gained a robust customer base and because of its on-going focus on quality, growth is inevitably on the cards.

Having already expanded its footprint into neighbouring countries, Defy is looking at increasing its market share in the SADC region and also further afield in Africa as CEO, Hakan Kozan explains: “There is a continued drive to expand into SADC countries. Defy already has branches in Namibia, Botswana and Swaziland.

There are also distributors in Zambia, Zimbabwe, Mozambique, Angola and Malawi. Further opportunities are being pursued in DRC, Malawi and Tanzania.

DEFY APPLIANCES

“Now that Defy is part of a global group, exciting opportunities exist to export worldwide to satisfy the group’s global customers.”

That global group is the Arcelik Group, a Turkish household appliance business, active in over 100 countries with approximately 21,500 employees.

Defy was acquired by the Arcelik Group in 2011 and since then there has been much investment in SA, allowing Defy to modernise and expand.

“Since the takeover, Defy has been able to provide a product offering that competes with the best in the world. Aside from the huge investment to modernise our factories to international standards, additional product categories like air conditioning and Small Domestic Appliances (SDA) have been added to the range,” explains Kozan.

International standards are something to which Defy

is no stranger. The company has been ISO certified for many years and quality remains a focus area when it comes to continual improvement.

“Quality and continual product improvements have been a key focus area in all Defy manufacturing plants. Future quality certificates planned are ISO 18000 – Health and Safety and ISO 50000 – Energy management system,” says Kozan.

OUTSTANDING PRODUCTS So what is it that makes Defy such a popular brand?

What has driven its expansion in sub-Saharan Africa?

Obviously it is partly down to the outstanding products and service offered.

Defy’s current product portfolio includes refrigerators, freezers, ovens, hobs, stoves, cooker continues on page 48...

APR 14 PAGE 45

Construction Automotive Industry

REHAU EMBARKS ON LONG TERM GASKET SUPPLY CONTRACT Leading polymer specialist REHAU has embarked on a long term contract, awarded in the latter half of 2013, to supply Defy Appliances with refrigerator gaskets.

The gaskets will be produced at REHAU’s newly commissioned production facility in Ezakheni Industrial, Ladysmith, in close proximity to Defy’s refrigerator and chest freezer factory in Ezakheni.

Nico Bläser, REHAU’s Sales & Marketing Manager for Southern Africa, says REHAU has a well-established relationship with Defy Appliances, based on the longstanding supply of refrigerator gaskets and rigid profiles from its plant in Fort Jackson, East London. Defy Appliances was acquired by the Arçelik Group in Turkey in 2011, one of the biggest appliance companies in the world and also a long term customer of the global REHAU organisation, supplied from its plant in Osmaneli, Turkey.

“When Arçelik took over Defy Appliances we went into discussions with its local management to supply the company’s entire gasket demand for its South African operations,” Bläser says. “We’re delighted to have secured this extensive contract and we believe the order came our way based on successful relationships proven over many years — locally with Defy Appliances and internationally with its parent company, Arçelik.”

“The recent commissioning of our new production plant in Ezakheni Industrial has ideally positioned us to execute this contract and to optimise logistics costs, not only for Defy Appliances, but also for our other customers.”

In addition to the manufacture of gaskets for refrigerators and chest freezers, the new REHAU plant produces specialised profiles made to customer specifications in soft and rigid PVC, as well as co-extrusions that incorporate two different compounds. Included in the production line-up are profiles for the manufacture of cold rooms and for supermarket refrigeration display units, as well as customised products for copper electrolytic refining.

Materials used in residential refrigerator and freezer gaskets require distinct qualities to withstand the

demands of these applications. REHAU meets these demands with its own uniquely formulated PVC grades that incorporate low migration plasticisers. Gasket features include lead-free and cadmium-free colours and stabilising systems, colours matched to any solid-colour sample, special biocide materials to inhibit fungal and bacterial growth and particular formulas for excellent low-temperature flexibility.

Bläser comments that the commissioning of the new plant is the latest in a series of investments made

by REHAU into South African industry. “A few years ago we built a state-of-the-art production facility for automotive components in Port Elizabeth and right now we’re investing in expansions to an existing plant in Fort Jackson on the back of an additional automotive contract awarded by Mercedes Benz. These significant investments demonstrate REHAU’s commitment to the future of South Africa.”

“Our extensive range of products and services is unique worldwide,” Bläser concludes. “Many of our polymerbased products are world leaders in the construction, automotive and industrial sectors. We specialise in providing custom solutions to technically difficult problems and are able to support contemporary needs for engineering prototypes, testing and production. The international experience available to our South African production facilities enables us to offer customers world class quality products.”

Construction Automotive Industry

RAND MUTUAL ASSURANCE

EXPERT DEVELOPMENTS FOR THE APPLIANCE INDUSTRY MATERIAL + TECHNOLOGICAL SKILL = BESPOKE SOLUTIONS REHAU’s extensive range of products and services is unique in the world. It generates valuable knowledge transfer across various industries and a systematic quality advantage.

Many of REHAU’s polymer-based products in the area of construction, automotive and industry are today’s world leaders.

REHAU offers innovative products for various industries, such as the domestic appliance sector. We supply tailormade solutions together with flexible logistics to strengthen our customer’s competitive ability.

Contact REHAU on (011) 201 1300 to discuss your requirements.

REHAU Polymer (Pty) Ltd - P O Box 924 - Edenvale -1610 - Pellmeadow Office Park - Building B - 60 Civin Drive - Bedfordview - 2007 Tel: 011 201 1300 - Fax 011 201 1350 www.rehau.co.za MAR 14 PAGE 47

COMPANY PROFILE

...continued from page 45 hoods, washers, dryers, dishwashers, microwaves, air conditioners and more, and with the addition of the SDA range and other projects, it looks set to add to its already sizeable customer base.

“Defy has an extensive customer base which includes chain stores, independent traders, buying groups, contract business as well as exports customers. New sales channels will be added through the introduction

“Further opportunities are being pursued in DRC, Malawi and Tanzania” of SDA and air conditioning,” explains Kozan.

“We are continuously monitoring the market activity and identifying any potential product opportunities.

At this point in time, there are a number of planned projects within the major domestic appliances category which are priority and receiving the most focus. As mentioned, SDA have been added to the range and will

PAGE 48 APR 14

be distributed by the end of the second quarter 2014.”

But even though products are vital to the business, anyone who operates in manufacturing will know that a comprehensive after sales service can be equally as important. Fortunately, Defy offers one of the best in the country, reinforcing its position as a market leader.

“Whilst there will always be aggressive competition in the market, it is our opinion that Defy’s extensive product range together with the exceptional backup service in almost every region throughout the country is what has made us the market leader in major domestic appliances in South Africa,” says Kozan.

He adds: “With Arceliks investment and expertise, we intend to extend that lead even further in South Africa as well as dramatically increase exports into subSaharan Africa and the rest of the world.

“With such a strong household name in South Africa and neighbouring countries, Defy believes it will greatly benefit by offering the consumer additional products in the kitchen, especially with the very good national support structure.”

FACTORY UPGRADES Defy is headquartered in Jacobs, Durban and controls

DEFY APPLIANCES operations in three major factories. The facility in Ezakheni (Ladysmith) manufactures electric chest freezers and electric refrigerators; the facility in East London manufactures electric refrigerators and the facility in Jacobs manufactures free-standing stoves, built-in ovens, hobs and tumble dryers.

Recently, the factories have received investments which have bolstered their ‘green’ credentials as Kozan explains: “There has already been significant investment in all Defy factories in respect of design, technology, energy and environmentally friendly chemicals and gases.

“A massive R200 million upgrade at the Ladysmith (eZakheni) Factory was completed in 2013 which included brand new chest freezer and refrigeration lines. The plant is now one of the most modern refrigeration facilities in the world, with harmful gases and chemicals being eliminated, ensuring compliance with the Kyoto protocols and future South African legislation.

“More than a R100 million is currently being spent on investments in the East London refrigeration plant.

A brand new side-by-side line as well as upgrades to existing lines is in the process of being completed. All

products within the Jacobs plant have been updated and improved to world class standards.

“Investment in each plant is geared to achieve future sales growth objectives,” he says.

But even with this investment into green processes, how friendly can home appliances really be when it comes to the environment? After all, lots of energy is used to make them and run them, isn’t it? Well, Defy has made its stance on eco-friendly processes clear.

“The Arcelik Group, and hence Defy, are committed to ‘environmentally friendliness’ – all products are designed with this principle in mind. Energy is also a key design consideration. The new generation of Defy products are up to 44% more energy efficient than the previous generation of products,” says Kozan.

“Arcelik’s motto is ‘Respects the globe, respected globally’. In all aspects of our business, everything is done with this motto in mind.”

STRENGTH IN TOUGH TIMES One of the toughest tests for businesses in recent times was the global economic slowdown that struck in 2008. Companies around the world felt the pinch when spending dried up and South Africa was no different.

MAR 14 PAGE 49

COMPANY PROFILE

We have heard of many difficulties that have presented themselves as a result of the recession but Defy managed to navigate all of this relatively unscathed. The growing demand for electrical goods and developments in infrastructure helped this and allowed the company to continue to grow, even during tough times.

“The major appliances market in the Southern African Customs Union (SACU) has historically enjoyed strong growth primarily due to the growing South African middle class and the investments in infrastructure since the change in government regime,” Kozan explains.

“However, the appliances market was hit both in terms of volumes and value during the South African economic recession, as consumers became stretched both in terms of credit and disposable income. In 2010, the market recovered significantly as the economy turned around helped by infrastructure development programmes, the FIFA World Cup and reduced interest and inflation rates.”

Infrastructure development and the attraction of world renowned events such as the World Cup are partly down

to the government and Kozan says that Defy, and the industry more widely, enjoys helpful support from Pretoria.

“Defy engages with the DTI on a regular basis and are currently exploring opportunities. The government is very keen to encourage further development and employment in the manufacturing industry. Defy is enjoying the benefit of government manufacturing grants related to our large investment spend.

“Despite the global economic slowdown, Defy continued to grow in market share as well as profitability due to its strong brand and unrivalled countrywide service back-up,” he says.

So, with its sights firmly set on growth whilst focussing heavily on efficiency and eco-friendly practice, it seems that Defy is set to further extend its leading position in its chosen market place. With factory upgrades and new product lines imminent, why would you look anywhere else? The company’s slogan, ‘You can rely on Defy’ defiantly rings true, all over Southern Africa.

.

Defy Appliances: The facts • Founded - 1905 • Head office location – Jacobs, Durban • Number of employees – 2700 • Annual turnover - (2012) in excess of R3.5 billion • CEO – Hakan Kozan • Ownership – owned by Arcelik Group since 2011 • Quality – all factories are ISO 9001-2009 certified

PAGE 50 APR 14

Bakers Making Strides Bakers SA Ltd a Level 2 BBBEE compliant organisation holding a 150% preferential procurement status which includes 25% as a value added supplier, is once again proving to be at the forefront of cutting edge technology. Bakers has created a strategic partnership with Vodacom, and use their high capacity microwave infrastructure for voice and data communications which provides rapid internet connectivity and ADSL failovers to provide redundancy. Bakers also utilizes a host of software products for the smooth operation of the business which includes warehouse & transport management systems providing online visibility to clients. Focusing on improving core functions of operations, the Accellos 3PL warehouse management system has been successfully implemented, and has become a viable asset over the past 3 years. This software aids with the management of inventory from production, first choice sales, returns and exports.

Our current objectives include infrastructure development and expansion of our sites & depots. In 2013, a facility was established in Namibia, enabling the organisation to be more accessible across the

border. Future plans will see the opening of facilities in Botswana and Zambia as well. Local expansion projects are also under way with the extension of the head office based in Pietermaritzburg and the development of a flagship depot in Philippi, Cape Town. This state of the art facility will be officially opened in May this year, and will become the benchmark for the entire Bakers network. Last year also saw a remarkable increase in fleet of 81 mechanical units, bringing the fleet total to over 1000 vehicles.

Other key components for 2014 objectives include: • special attention to the quality of human capital development • more frequent health & safety awareness campaigns • implementation of the new marketing infrastructure • making our world class operation a reality at all facets of the organisation

At Bakers each and every employees focuses on providing the best service to our clients at all times, we are performance driven logistics.

MAR 14 PAGE 51

COMPANY PROFILE

Minefields protector sets new horizons

Editorial: Colin Chinery Production: Ajuanne Payne

For 120 years Rand Mutual has been providing caring compensation for workers in the mining sectors. Now as it moves into other sectors such as metals and auto, CEO Jay Singh talks to IndustrySA about the proud history and new horizons of a company for whom compassion is never a cliché.

In South Africa’s biggest and most iconic industry Rand Mutual is pioneer, innovator and role model. Its protectorate; the great minefields: coal, diamond, chromite, vanadium, and the platinum group metals, a sector realising 18% of GDP, employing one million – half directly - and accounting for roughly a third of the JSE’s market capitalisation.

Of South Africa’s industries this is by far the most hazardous. Safety is improving, the 2012 figures – the latest available - registering the lowest ever number of fatalities, according to the Mine Health and Safety Inspectorate. Even so 112 miners died that year, and this February saw at least 26 workers, legal and illegal, killed underground.

This is the backdrop against which, 120 years ago, non-profit Rand Mutual Assurance was formed

PAGE 52 APR 14

by three gold mining corporations opening on the Witwatersrand.

“At the time there was no injury insurance cover for those working in the new gold mining industry,” says Rand Mutual CEO, Jay Singh.

“But there was a demand, and the only country in the world that offered workers compensation insurance was Germany. There are close parallels with our work and the work done in Germany. Someone would probably have looked at the German model and adapted from it.

“It was three gold mines that started the business in the beginning so from 1894 until 1940, RMA did what it thought was required of it, in consultation with those gold mining companies.”

MINERS’ FRIEND For the next 46 years Rand Mutual Assurance was the

RAND MUTUAL ASSURANCE

sole provider of industrial death and injury cover in South Africa. The first national legislation came in 1941 - but excluding workers in mining and construction.

52 years later the Compensation for Occupational Injuries and Diseases Act (COID) created a workers’ ‘umbrella’ to which employers are required to register and contribute.

COID nonetheless encourages employers to take out additional insurance. And Rand Mutual, which deals exclusively with corporates, has an impressive client list that includes majors such as Anglo Platinum, Anglo Gold Ashanti, the whole of Anglo American, Harmony Gold, Lonmin and BHP Billiton.

“If you are in mining you can choose to buy your cover from the Government or from Rand Mutual; just like in construction where you can choose the Government or FEM,” says Singh. “And this means

in effect that in market terms our competition is the Government.”

And competitive edge demands better and more attractive benefits. “We have to make sure we pay at least what the legislation says. So we have built other products around COID, for example our workers compensation scheme has a number of components - medical aid, injury while on duty, and a disability calculation resulting in a lump sum or pension.

“COID says that a pension should be based on a person’s salary but the salary is capped at R26,000 per month. We’ve taken that cap away and will base the pension on your actual salary, even if it is R1million per month rather than the minimum R26,000.

“We’ve created a lot of value-adds. COID doesn’t cover travel to and from work and we’ve added that as a product. If you’re injured while going to work or

APR 14 PAGE 53

COMPANY PROFILE

coming from work or travelling on business then we can provide that cover too - this is particularly significant in South Africa, where a lot of people travel by taxi.

“We deal only with corporate customers. When the employer buys the cover and pays the full premium, we take over the obligation of providing cover. Any of his requirements in terms of legislation or injury at work, we would then honour on his behalf.”

“Our system is pretty much five different programmes integrated into one” To underpin this and to manage the pension benefits payable to claimants and their beneficiaries RMA Life Assurance Company Limited (RMA Life) was established as a wholly owned subsidiary of Rand Mutual in 1990.

From its Johannesburg headquarters Rand Mutual

PAGE 54 APR 14

oversees 160 employees, six main offices around the country, and three satellites –in the Eastern Cape, Mozambique and Lesotho.

“In South Africa and neighbouring countries most of the miners come from very rural areas; rural parts of South Africa and rural parts of neighbouring countries; and that is why we have a number of small or satellite offices.

“40 years ago South Africa got a lot of its mine workers from Mozambique for instance, so now there will be injuries, or widows of those who died in mining accidents who need to be paid pensions or medical care. In fact there are in Mozambique around 2000-3000 pensioners who we look after.”

CROSS-BORDER COMPLEXITIES According to Southern Africa Trust consultant Dr Mathais Nyenti, some 86% of migrant workers from Botswana, Lesotho, Mozambique, Swaziland and Zimbabwe are currently working in South Africa. Does this throw up administrative complexities for insurers?

RAND MUTUAL ASSURANCE

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APR 14 PAGE 55

COMPANY PROFILE

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“Looking after cross-border workers and ex-workers is fairly complicated,” says Singh. “For example; if there’s a mining accident the widow may not fully understand she is entitled to receive benefits. It is our responsibility to find and identify the widow - making sure there is no fraud - and then pay her. And the difficulty so often is in tracing the dependents and beneficiaries.”

While statutory workers insurance remains its backbone, the Rand Mutual product reach has expanded into areas like accidental injury or death due to workplace disturbance, and a number of other related spaces.

Another area under review is a funeral policy or burial fund. “We could do more on this. We currently have about 50,000 insured and it’s an area we want to expand and in which we see great potential.”

The Government may be its only market competitor but Pretoria is engaging with Rand Mutual on a joint scheme to improve national welfare insurance mechanisms and in particular its IT system.

“Another key area for us in terms of expansion surrounds the licensing of our systems. We’ve built a COID system and the Government does the same

PAGE 56 APR 14

things as us but their compensation fund system is not the best so we see that as a potential market for us.

“The same scheme could be marketed throughout Africa – in fact there isn’t a good system anywhere on this continent that administers workers compensation benefits.

“In South Africa and neighbouring countries most of the miners come from very rural areas which is why we have a number of small or satellite offices” “The Government is piloting some of our IT systems as we speak, with the potential to put some ten million lives on to the system. We have been doing research to see if there is anywhere else in the world comparable to our system and we haven’t come across one yet - and certainly not in Africa.

RAND MUTUAL ASSURANCE “Workers compensation benefits have a number of components. There is a medical aid component, a leavepay component for people injured at work, then there is a component that calculates your disability from which we can pay a disability lump sum or disability pension.

“If you are severely or fatally injured at work then you or your wife and children will receive the pension for life or until they are 18. So there are many facets to consider.

“You often get a pension system that delivers only pensions, or another that handles only funeral benefits.

Our system is pretty much five different programmes integrated into one system and database and it is this integration that provides the real benefit.”

While Rand Mutual pursues opportunities to license its IT system to third parties, a parallel focus for growth is an extension of its COID license to include the metal sector.

“We have been operating more or less as an exemption from current legislation, and until last year this was on the basis that we can provide this service only to the mining industry.

“So over the past few years we have gone back to Government and said ‘Look we are doing a very good

job in mining, with more than 95% of the mining houses buying from us rather than the Government.

So on the basis of us providing a very good and costeffective service, let us expand our services into the iron, steel and other metal industries.’

“Replicating our business model into another sector is the quickest and easiest way to expand, potentially increasing the 400,000 lives we currently insure by another 600,000.

“We have started, and are making presentations to the bigger potential clients, understanding motivations and doing analysis, and signing up half a dozen. And this year we expect to take on at least 100,000 lives.”

As for expanding physically into neighbouring countries and offering products to industry in the rest of sub-Saharan Africa, Singh says this would be a complex move and one that requires extensive research.

“There is strict legislation between different countries. For example; if we were to offer our products in Zimbabwe, the Zimbabwean government would say that the money can’t leave Zimbabwe and would have to be insured with a local insurance company. We would also need to prove that this type of insurance is not available in that country.

ITQ Business Solutions, a JHB based IT Company founded in 2000, drives and supports its clients through the provision of custom built software solutions and outsourced / co-sourced development services. ITQ Business Solutions has 3 subsidiaries – ITQ Health, Red Edge and iSolve, which collectively form The ITQ Business Solutions Group.

Our solutions are typically built around the Oracle and MS SQL Server Databases using Oracle Forms, Oracle ADF, Java or .NET as the development platform, leveraging proven development architectures like SOA. ITQ traditionally enters into long term business relationships with its clients and is seen as a trusted partner rather than a supplier. The ITQ Business Solutions Group has a complement of over 350 Developers, Project Managers and Business Analysts - we believe with some of the finest skills in the country. We have established a solid reputation for delivering large and complex projects, all of which are reference sites.

Our long standing large clients include Rand Mutual Assurance Company, Medscheme, Wesbank, Standard Bank, Liberty, Stanlib, FNB, Momentum, Vodacom, AON, DE Beers, Deloitte and Mutual & Federal.

We employ a hybrid of proven methodologies ranging from agile practices to more traditional project management that will see the project achieving its full potential in shorter time frames. The specific development methodology we employ depends on the nature of the project, but where possible we use our own flavour of Agile/RAD. Where complex business rules/processes are involved we always prepare a detailed architectural specification and database design up front. In our industry, it has become common for projects or development phases longer than 12 months to miss deadlines or never finish. We break this trend through our strong belief in providing frequent, functional deliverables to our project stakeholders. Where required, we endeavour to adapt our approach to fit in with our clients’ existing methodologies.

ITQ Business Solutions is majority black owned business (BEE Level 3) that is part of the listed Morvest Group. iSolve House 17 Sunninghill Office Park Peltier Drive Sunninghill Ext 71 Gauteng, South Africa

Office: +27 11 087 6601 Fax: +27 86 621 9666 Fax2Email: +27 86 621 9618 info@itq.co.za www.itq.co.za

MAR 14 PAGE 57

COMPANY PROFILE “What we would need to do is set up in those countries and get a life insurance license to do business.

We are researching this and the concerns are around the capital required and the need for a local partner in those countries.

“It’s probably a slightly longer term vision, not for the next two or three years but after that we might find the ideal types of partners, those who are involved with life insurance and want to grow into workers compensation and benefits.”

KING COAL Like South Africa itself, Rand Mutual has grown through mining. “Pre-2008 we may have had 90% of the mining business. And we would try to convince the remaining 10% to join us.”

Since then and despite a 7-8% fall in mining employment, Rand Mutual has seen a decline of only 2%. “We have been very active in making sure we are not much affected by the drop in mining house numbers.

“There’s quite a bit of diversity in mining. Look at gold. Six or seven years ago it was in decline while platinum was growing like crazy. Since 2008 platinum

has not grown but the coal industry has.

“The international demand for coal is so great that no one country can meet it. As a result we have seen a lot of new employees in the coal mining sector. So growth in one industry offsets a decline in another.”

Over 120 years Rand Mutual has grown almost in lock step with the rise of the nation’s great mining industries. Now as it moves into the steel, metal and auto sectors, it is attracting a new client list of potential major league companies such as ArcelorMittal, Evraz Highveld Steel, Mercedes-Benz, BMW, Nissan, Toyota; an inspiring South African story of shared interests and Mutual regard.

.

“Replicating our business model into another sector is the quickest and easiest way to expand”

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RAND MUTUAL ASSURANCE

Jay Singh

Rand Mutual Assurance – The People Like any company, RMA has employees with a wide range of skills. Having people with skills across different areas allows for real expertise in the various departments of the business. Singh explains that what makes RMA people different is that they understand the medical nature of the company.

“We have people who asses a disability; maybe people who have been in a mining accident and is injured; for this we have medical doctors who have gone on to gain an occupational health qualification.

They will measure disability and review our patients. Supporting these doctors are senior nurses.

“On the other side of the business we have people who capture claims. They are usually more junior and but they have understanding of medical terminology. If

there is a claim, our people can quickly relate to the injury, when they are capturing the claim or processing a doctor’s invoice.

“Then of course we have financial people, administrators and IT people. Our IT people are highly skilled. We do all of our IT development in-house.

“It’s like any other company; we have a whole cross-section of skills. The main difference is our medical expertise and the training that we provide in that regard.

For example; our doctors are trained and understand occupational health but we skill them in terms of worker compensation, legislation and all the systems that go with it.

“We also offer training to all the mining houses that we cover and the labour organisations. It’s very important that they understand the benefits so when there a query, they know exactly how to report it.”

APR 14 PAGE 59

COMPANY PROFILE

Aviat-Ubuntu: A match made in telecoms heaven?

Editorial: Harriet Pattison Production: Chris Bolderstone

South Africa has experienced exponential growth in the telecommunications industry in the last decade and with two highly innovative companies joining forces, they are expected to take the industry by storm…

With over 16 years of experience in the IT industry, Ubuntu Technologies has made waves since it was founded in 1997. Realising a gap in the technology market with a lack of empowered companies in the ‘90s, Ubuntu has succeeded using its continued invaluable experience in networking, wireless solutions and data services to help and assist local clients. Primarily within the public sector, including government departments, state-owned entities and selected corporate clients, Ubuntu help each client meet individual organisational objectives efficiently and successfully by designing, implementing and supporting ICT infrastructure services and solutions.

Since its inception, Ubuntu has now grown to include a group of impressive leading industry vendors that help to provide networking and communication. With leading names including Dell, Intel and EMC, Ubuntu is able to design exciting and innovative products and solutions with

PAGE 60 APR 14

the upmost efficiency for its clients. In its value statement, Ubuntu explain: “We embrace diversity within our organisation and celebrate the cultural differences of our employees. We, as a group of individuals, value the practise of our business which is led by integrity, honesty, personal excellence and a high regard for customer satisfaction. We are committed to our customers and partners and aim to deliver only the best of solutions and services.”

Ubuntu has been awarded numerous awards in the past few years; Dell Partner of the Year South Africa 2013, Avaya Partner of the Year 2013 and VMware Rising Star Southern Africa 2012, are just a few testimonials showcasing why Ubuntu Technologies is now an industry leader.

NEW BOARD MEMBERS In 2012, Ubuntu hired two new board members, Mandisa Monakali and Allen Tshabangu, to join the

UBUNTU TECHNOLOGIES

current directors; Wandile Bereng (CEO), Gary Robertson and Stephen Stroh. The newly appointed board members are part of Kapa Consortium, led by Tshabangu, and have been in talks with Ubuntu to acquire 30% stake in Ubuntu Technologies Group with a possibility of increasing this to 60% in the next few years. Ubuntu is confident that this will help to further its objectives within the ICT sector.

Bereng explains the importance of hiring Monakali and Tshabangu: “This appointment affirms two strategic imperatives within the company, the first being that the appointments complement Ubuntu’s drive to increase our black shareholding and management control to a majority. We believe that the country depends on businesses to best manage Black Economic Empowerment and meaningful transformation within their organisations to promote

economic and social stability.

“Secondly, the appointment aims to assist with the achievement of our business objectives of growing and broadening our services offering as an end-to-end ICT services and solutions provider. We are therefore delighted to welcome Ms Monakali and Mr Tshabangu to our company’s board, and strongly maintain that their renowned business and strategic insight will add considerable value to our company’s ambitions.

“Ubuntu Technologies’ reputation has been built on a strong foundation of moral ethics, and this philosophy includes a concerted commitment to fulfilling South Africa’s transformation aspirations. Our recent board appointments firmly speak to these objectives, and moving forward we will continue to contribute in a meaningful and positive way to the country’s growth and development” he said.

APR 14 PAGE 61

COMPANY PROFILE THE CLOUD Ubuntu implements its end-to-end company ethos by offering software, hardware and security solutions to clients, resulting in a successful business infrastructure.

Although the recession has affected Ubuntu’s competitors, the company itself remains strong with more challenges and opportunities in which to exceed and innovate. Its innovative introduction of The Cloud includes three new concepts; Private Cloud, Public Cloud and Hybrid Cloud.

Firstly, a Private Cloud is predominately defined, controlled and serviced by internal IT resources and can be built using both internal and external IT infrastructure. It can be operated as a service but it must enable your transformation from a legacy IT organisation to a strategic business partner within the organisation. Cloud architectures requires changes in traditional architectural foundations at numerous levels including, infrastructure, application network levels and storage resources. In adopting a private cloud, it will require a transformational approach to current IT principles.

Sarel Naude, Senior Solutions Consultant at Ubuntu Group explains the necessary requirements for the

cloud implementation: “Traditional approaches of creating isolated physical configurations where services are bound and tied to specific hardware configurations need to be shattered. Resources (CPU, Memory, Storage and Networking) all need to be pooled and must be dynamically provisioned at the enterprise level.”

To help with any challenges, Ubuntu offer a Cloud Readiness Assessment. A ‘Fast-Track’ solution to help with questions that managers may face when considering using this new design, including “How ready are we really for the Cloud? How can we put together a roadmap to the Cloud that is based on fact and is specific to our unique environment?” This solution will provide immediate value and actionable deliverables for any IT organisation. In addition, it will help to accelerate the organisations transformation strategy towards Cloud Computing.

The Cloud Readiness Assessment additionally helps to examine an organisation’s maturity along nine fundamental characteristics of Cloud Computing; Cloud Organisational Readiness, Cloud Ready Infrastructure, Data Protection for Cloud Computing, Multi-Site Cloud Technologies, Automation/

We’re proud to be seen in public with you.

Dell is proud to have Ubuntu Technologies as our preferred partner in the public sector.

Trained and certified on the entire range of Dell solutions, Ubuntu Technologies deliver comprehensive ICT consulting, deployment and support services to the public sector. Which in turn allows it to serve the communities in which it operates more efficiently, timeously and cost effectively.

RAND MUTUAL ASSURANCE

AVIAT INTELLIGENT MICROWAVE, SECURELY CONNECTING ENTERPRISES TO THE CLOUD Aviat Network Microwave Solutions helps create a trusted and resilient delivery network for efficient connectivity to the cloud.

Find out more at www.aviatnetworks.com Proud to be an Ubuntu Technologies Partner for Cloud Services Delivery

Orchestration for Cloud environments, Trust/ Compliance in a Cloud delivery model, Cloud Services/ Chargeback, Cloud Applications Readiness and lastly, End User Computing for Cloud.

Naude explains that these nine characteristics, “will guide the participants of the assessment, through a set of guided workshops designed to build a personalised Cloud maturity model describing the existing and desired readiness state of your IT environment. This will assist organisations to plot the route required to journey to the Cloud and reduce the risk involved in embarking on this journey.”

STRONG PARTNERSHIPS Aviat Networks is a leading independent provider of microwave transmissions with over 50 years of experience in the telecommunications sector and 20 years presence in Africa. Based on 25 telecom operators representing 37% of worldwide capital expenditure and revenue in 2012, Aviat was rated as number one for technology innovation, product reliability, security and management software (to name but a few), in a survey conducted by California-based Infonetics Research.

Aviat certainly has many impressive statistics putting it

high up on the industry pedestal as a well-established global brand with over a million systems deployed globally, over 200 patents and 2000 customers and currently serving to 350 mobile networks. It is clear to see then that the hard work over the past fifty years has paid off for Aviat Networks.

Now present in more than 100 countries, Aviat’s innovative use of microwave technology for network solutions is considered a cheaper alternative to the fibre optic networks which are still widely used.

Despite the company’s impressive successes, the company needed BEE (Black Economic Enforcement) to help move it forward and successfully expand into the South African market, including access into government and public sectors. Forming an allegiance with Ubuntu Technologies, Aviat-Ubuntu, with a joint revenue of over R6 billion, will create an innovative telecommunications company that will combine cutting edge local and international expertise.

With both companies working together with joint ownership and with a significant black representation at board level, Aviat-Ubuntu Technologies will provide a ‘best of breed’ service to both the private and public telecommunications operators. With nearly 70 years

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COMPANY PROFILE

of experience and a joint revenue of over R6 billion, Aviat-Ubuntu is not expected to develop products as such but more to alleviate marketing campaigns and to help drive sales and continue to create an impressive international client base.

THE CEO Newly appointed CEO of Aviat-Ubuntu, Allen Tshabangu, has 20 years of experience in financial services, working for companies including, Standard Bank, Electronic Media Network (M-Net) and Norwich Investments and managing pension funds, life insurance and private equity investments. Tshabangu has also been involved with numerous impressive acquisitions including the V+A Waterfront and Sandton City.

Previously the non-executive director of Escalator Capital, Tshabangu has been appointed board member and director of Ubuntu Technologies.

Tshabangu explains, “Aviat-Ubuntu aims to support the development of the country’s economic potential by leveraging off the unique expertise of the two partners.

The new company is uniquely positioned to provide end-to-end solutions, and also to compete for market share based on improved efficiencies that will accrue from economies of scale. The company is poised to take a lead in providing leading telecommunications solutions.

“We’re the new players on the telecommunications block, and we aim to make our presence felt in a way that will benefit all operators and the South African

PAGE 64 APR 14

people as a whole” he concludes.

LOOKING TO THE FUTURE Where Ubuntu has previously concentrated on more back-haul network solutions and data centre services, both companies now want to further develop and expand by offering cloud computing, virtualisation and storage services for the enterprise market by becoming internet service providers. Both companies are also in talks to offer and service other cellular network providers to the rest of Africa and in the future, to the Middle East. Bereng explains: “AviatUbuntu intends to be a force to be reckoned with in the telecommunications sector. By joining forces, our two companies will be able to compete aggressively in the telecommunication sector, and will be able to expand our client base significantly.”

With many plans for expansion and growth on the horizon for Aviat-Ubuntu, this joint venture looks to be a match made in telecoms heaven.

.

“We’re the new players on the telecommunications block, and we aim to make our presence felt in a way that will benefit all operators and the South African people as a whole”

RAND MUTUAL ASSURANCE

VALUE PARTNERSHIPS Being successful and staying competitive in the South African IT industry

S

outh Africa boasts a versatile and oftentimes challenging IT environment. An environment that today supports an industry that by virtue of an isolated past is inherently innovative, challenging of conformity and pioneering in its approach to technology.

It is with this as its backdrop that Westcon is today proud of its partnership with local resellers who embrace a global understanding, business approach and service ethic, and are then able to adapt these to a local environment, partners such as the Ubuntu Technology Group of South Africa.

“Our goal at Westcon is to align with partners who make a valued contribution to and impact in the industries in which they operate,” states Uwe Brandkamp, Regional Sales Director at Westcon.

“One such partner is that of the Ubuntu Technology Group, a company, that through its service ethic, understanding of technology and unique approach to its customers continues to provide client-centric solutions that match the express needs of a changing customer base.”

According to Brandkamp the real value a reseller can bring to its clients is a key and core understanding of the technologies they represent, the expert skills needed to implement and support these, as well as a view of how these technologies fit into the “bigger picture”, or the future roadmap of both IT and the (client’s) business.

Excellent vendor relationships either through its distributors as a conduit, or directly with these companies, is also quintessential to ensuring client satisfaction.

Today Ubuntu partners with Westcon on the delivery of solutions from its Cisco, Symantec and Microsoft portfolios. This includes the delivery of services and solutions right from the edge of the network, through to the heart that is the data centre, and back onto the desktop of the user.

Ubuntu’s focus on “partnering” with clients has to date enabled it to map the right technologies, to the right environments, without compromising itself or the client’s technology investments.

“IT needs to at all times be considered as part of a bigger picture. You cannot look at a technology investment as a singular or linear part of a business.

In our experience Ubuntu strives to look at the holistic impact technology will have on a client by way of a needs analysis, they then use this information to map out a specific configuration or specification for the client and then build a relevant use case scenario for the company,” states Brandkamp.

“It is seemingly simple, but so few companies take the time to engage with their customers throughout the technology delivery process, while at the same time evaluating the validity of the decisions being made,” he adds.

“

“

Our goal at Westcon is to align with partners who make a valued contribution to and impact in the industries in which they operate.

As a distributor of high-value technology solutions across a myriad environments and industries, Westcon prides itself on offering its partners with the strategic value-added services they need to grow their own businesses, while having access to a series of global vendor portfolios and relationships.

Its value-added portfolio extends the delivery of technical, training, sales and support services for its resellers. Access to warehousing, staging and backup stock facilities, as well as technical teams that can act as an extension of the customer should they need to.

“Yes of course businesses need to succeed in order to remain viable. But in our case, as a value-added distributor, our success is directly linked to the success of our partners. Ubuntu’s ongoing success in being able to act as a high-value services and solutions provider in the highly competitive and innovative South African market is testimony to the mettle from which they have been forged,” ends Brandkamp.

0800 600 557 | WWW.WESTCON.CO.ZA MAR 14 PAGE 65

COMPANY PROFILE

20 years and counting for the LuSE Editorial: Joe Forshaw Production: Ajuanne Payne

The Lusaka Stock Exchange is 20 years old this year. After celebrations in February, the focus quickly turned back to the expansion and development of the exchange which is currently going through a demutualisation process. CEO, Brian Tembo talks to IndustrySA to explain more…

Sub-Saharan Africa is becoming one of the go to destinations for investors, both local and international. Commercial and industrial success in the region has inspired impressive predictions for growth with the IMF stating that the region’s economy could grow by as much as 6.1% in 2014 compared to just 1% in the Eurozone.

Clearly, the developing nations that make up sub-Saharan Africa will be vital in the growth of the continent as a whole.

One of those nations, Zambia, was found celebrating recently as its principal stock exchange – the Lusaka Stock Exchange (LuSE) – turned 20 years old.

The exchange has played a pivotal role in the growth of the country, allowing businesses that were previously state owned entities to move into the private sector and to raise much needed capital for expansion.

LuSE CEO, Brian Tembo tells IndustrySA more about the history of the exchange and how it came into being back in ’94.

PAGE 66 APR 14

“LuSE was established on 21st February 1994,” he says.

“There was a gap that was created by governments exit from business. Because of this there was a need for a platform where the private sector, which was expected to drive economic activity, would go to raise longer term capital.

“The exchange was central in the privatisation process and also in the exit route that the government wanted to utilise to exit from the businesses it held. We as an exchange performed that role, facilitating the divestiture of government interests. There was also a need to empower citizens through share ownership which was a relatively new thing at the time so clearly the exchange had to perform that role of allowing the government as it exited to offer those shares to citizens at a discount.

“There was also a need to attract foreign investment and that was also possible through the exchange.

“Companies that had become private could now grow

LUSAKA STOCK EXCHANGE

© General Motors -1916 Chevrolet 490

through the exchange. That was the initial push for the establishment of the exchange.

“Since then we have had 21 companies listed and out of those 21 about 11 were as a result of that privatisation process.”

20 YEARS AND COUNTING The 20th anniversary of the exchange was marked with a week of activity and celebrations at the headquarters in Cairo Road, Lusaka. Brokers were present in malls around Lusaka, introducing people to the LuSE and educating the business community on the key theme of the week – ‘going public’.

“On the day and in the week leading up to February 21st, we had a series of events,” says Tembo. “We called it Capital Markets Week and it was launched by the Minister of Finance.

Brokers were able to offer free account opening services to the public. We held a Peer Forum where companies who have listed on the exchange and grown through the exchange

could explain to their peers what their experiences have been on the exchange.

“In mid-April there will be a compliance conference as we are looking to re-sensitise the market of the rules. We benchmark our rules to the South African exchange, the JSE, and people from the JSE will come in to hold a workshop for companies that intend to list so that they understand what the requirements are.

“We are also planning a huge conference, a capital market conference, to share with people where we are coming from, where we are and where we would like to be.”

The exchange has come a very long way since its inception and its exceptional growth looks set to continue with government encouraging public listing. Tembo explains that he expects more companies to list throughout 2014.

“We’ve just concluded a $20 million rights offer for continues on page 70...

APR 14 PAGE 67

Imagine

LUSAKA without us

Imagine you woke up one morning and your bedroom walls had disappeared.

Imagine the very foundations of your house were gone and you were standing on the bare earth. Imagine looking around and seeing a barren landscape before you.

Imagine your life without Lafarge. www.lafarge.co.zm PAGE 68 APR 14

Building better cities™

LAFARGE ZAMBIA PAYS SHAREHOLDERS HIGH DIVIDEND ON THE BACK OF STRONG 2013 FINANCIAL RESULTS Turnover rose 14.5 percent, to ZMW 1,132 million compared to 2012 for Lafarge Zambia Plc, Zambia’s leading producer of building materials and construction solutions provider, on account of increased demand in the domestic and export markets. The company recorded strong performance in cement production due to improved industrial performance at both the Ndola and Chilanga Plants resulting in total sales volumes for the year of 1,1 75,000 tonnes, up 7% compared to prior year.

At the Company’s Annual General Meeting held at Taj Pamodzi Hotel on 31st March 2013, members approved a final dividend of ZMW 2 per share, in addition to the ZMW 1.5 per share interim dividend already paid. This represented a dividend payout ratio of 207% up from 70% in the prior year.

The Directors were also pleased with the Company’s share price which had risen from ZMW 8 at the beginning of the year to ZMW 15.75 per share at the end of 2013 and was at ZMW 22 per share at the time of the meeting.

The Company revealed that profit after tax at the end of the financial year rose to K338 million while profit before tax was ZMW 510 million, compared to ZMW 435 million in 2012.

Lafarge Zambia CEO, Emmanuel RIGAUX stated: “The second half of the year saw a sharp improvement in operational and industrial results both at our Ndola and Chilanga Plants. Lafarge Zambia also implemented targeted cost reductions as well as logistical optimizations which enabled us to improve our operating margins.

Looking at 2014 we expect a continuous strong environment driven by infrastructure and mining projects both in Zambia and in the DRC. Our absolute priority this year is to improve our level of customer service through innovation, refocus of our sales and customer departments and logistical break-through solutions. As previously referred to by Lafarge Group, Lafarge Zambia is planning to double its capacity both in Ndola and in Chilanga through debottlenecking and construction of a new line. This will enable us to remain the market leader and preferred supplier of construction solutions in Zambia and the DRC’’.

COMPANY PROFILE ...continued from page 67 one of the energy sector company listed on the exchange, CEC (Copperbelt Energy Corporation), which has branched out and invested in West Africa. We are getting more Zambian companies that are able to expand through the exchange and take advantage of opportunities in other parts of Africa which is fantastic I think,” he says.

“We set out to play a pivotal role in the development of the economy. What has changed is that now the public are more aware about share investments and that awareness did not exist before. One thing that is worth noting is that despite the change in government administration, the support towards the exchange and what it stands for has continuously grown. Just recently, the Minister of Finance was at a public event where he actually announced his and the government’s desire for companies to list.

“If you want to share your wealth and success by spreading your shareholding then you must list. It’s good that we’ve had finance banks step up and say that they want to list and if they do so this year we are looking at quite a number of new listings.

“We anticipate at least four listings this year. We see 2014 as not only being our anniversary year but a year of rekindling the life of the exchange. We are also launching a platform for SMEs so that smaller growth companies can have easier access to the exchange to grow.”

As for the nature of companies listing, Tembo suggests that

“We are also launching a platform for SMEs so that smaller growth companies can have easier access to the exchange to grow” technology businesses will play an increasingly important role with two insurance based companies expected to list and other financial services sector organisations and telecoms companies also giving off good signs.

When it comes to investors, Tembo says that the exchange is looking to encourage both foreign and local investors to get involved because “we need diversity and we also need to put the country on the map so we can attract more and more investment.”

The exchange itself will undergo changes as it grows and developing a wider range of products and services is inevitable.

“As an exchange we want to look at multi asset offering. We want to broaden the product offering of the exchange. We also want to ensure that we are driven by local growth companies

PAGE 70 APR 14

and play a role in economic development,” explains Tembo.

CHANGE IN STRUCTURE Back in 2013, strong rumours emerged that the LuSE was considering demutualisation. These were confirmed in November 2013 after consultants were bought in to manage the demutualisation process in which the LuSE will issue stock to investors other than its members.

“For us, demutualising is not only about changing the shareholding strategy but more so about aligning the exchange in a manner that it can better perform its commercial role as well as its regulatory public benefit role. Embarking on this process has been very positively received because it signifies the exchange stepping up to lead by example in terms of corporate governance,” says Tembo.

“The process only started in November. We have appointed our consultants and the initial phase was to identify the legal changes that will have to happen and to engage with our key stakeholders on the kind of changes that will happen as a result of demutualisation and we are also engaging with the government and wider market so that everyone understands why we are doing this.

“So far most of the interest groups have been engaged. We are in the process of engaging with the listed companies and we are set to release a report which will be looked at the entire community.

“We expect by the end of the year that certain changes will have taken place including separation of ownership from brokerage and some changes in the rules to reflect that,” he adds.

What will be the immediate impact from the demutualisation process? “It will also allow us to raise funds and one of the outputs after this would have to be broadening the staff complement. This is a very unique business and requires a lot of training. A lot of the training can happen locally but we will also look to collaborate with our partners in the JSE and the NSE so that our people have a vast range of experience. We would also consider sending people off the continent, to the US or UK, so that they have strong exposure to the business,” explains Tembo.

FUTURE OUTLOOK The Zambian economy has been buoyant in recent years despite the slowdown in the global economy. This is mainly due to the success of the mining, agriculture and construction industries and Tembo says that a successful economy is only beneficial for the exchange.

“We are currently experiencing a construction boom, there are a number of new districts which have been set up and all of these districts require services so all of this is working positively to stimulate the local business space,” he Grain says. Silo

LUSAKA STOCK EXCHANGE

MAR 14 PAGE 71

COMPANY PROFILE “The slowdown had an indirect affect. Of course, the currency exchange rate was affected and slower economic activity stifles businesses and stops them doing what they are trying to do. When that happens, you’ll find that fewer companies turn to the exchange to raise money for expansion.

“However; as for the outlook, especially after the last rating where Fitch gave us a B, we are absolutely stable. The government is on the verge of issuing a $1 billion bond to combat the deficit and finance some of the infrastructure projects and that will provide a boost for the whole economy.”

In 2013, the LuSE’s all-share index rose by 42% making it Africa’s fourth-best performer. As the region’s economy continues to grow and more busiensses think about listing, it looks like nothing but good times for the exchange in the future.

ZAMBIA AND SA One of the key factors in the growth of the LuSE has been its robust relationship with the rest of the African exchanges and the JSE in particular.

“The JSE is like our big brother,” says Tembo. “In the SADC region, exchanges use the JSE as a benchmark for standards. We aspire to achieve what the JSE has achieved.

We get technical support from the JSE and whenever we are looking to advance our set-up, we have a constant exchange with them. The JSE plays a very important role in helping our markets grow; they are a very important partner.”

PAGE 72 APR 14

He goes on to state that he would like to see an increase in the business relationships between the two countries saying that cross listing represents a good opportunity for South African companies.

“What I would like to see is for South African companies who are setting up in Zambia and are listed on the JSE to consider cross listing. Also, I would like to see a lot more collaboration between SA and Zambian businesses, away from the exchanges.”

Another key factor in the development of the exchange has been its close relationship with the government of Zambia. As mentioned above, even after changes in administration, the government has been supportive of the exchange.

“We work in partnership with the Zambian government. If you look at how the government has encouraged investment in the exchange, you’ll find that we have had some tax incentives and we also support government policies through the exchange.

“It really is a partnership. We are always looking to what government thinking is and what their plans are. In the past we have received grants for market development and ensuring our regulatory environment is up to scratch,” says Tembo.

With the backing of the government and a potentially growing number of listed companies, it seems as though the exchange is well on its way to meeting its mission statement, as a primary market to ‘become the capital

WILLIAMS HUNT

raising mechanism of choice in Zambia through the provision of an efficient, transparent and cost effective service to issuers.’

Tembo reiterates that expansion is one of the targets for the LuSE saying: “The stock exchange wants to expand its asset classes away from the mainstream equities and bonds

to also look at commodities so I see the future breeding one exchange in Zambia that has multi-assets.”

If this sort of expansion can be achieved then who would bet against celebrations being planned ten and 20 years down the line when the LuSE marks its 30th and 40th anniversaries?

.

Meet Brian Tembo “My life with the exchange started when I was an undergraduate. During the privatisation period, people had mixed feelings as there were many who liked being looked after by the state but the government was saying that they didn’t want to be involved in business.

“I did a study that looked at the impact and the initial results of privatisation and floatation and of course I recommended things that I thought could be done to make things better and I ended up implementing those things through my various capacities. I worked for the privatisation agency which dealt with those companies which changed for listing on the exchange, I then found myself at the exchange helping to develop the business, I left the exchange to develop the Zambian Agricultural Commodities Exchange and here I am today pushing the board and shareholders vision of where the exchange should go.

“It’s been a labour of love. I’ve found myself in a privileged position where I can push my ideas on how a structured market of exchanges can help develop Zambia.”

APR 14 PAGE 73

COMPANY PROFILE

Still an integral part of the energy mix Editorial: Harriet Pattison Production: James Clark

Grootegeluk Coal Mine has been labelled as one of the most efficient mining operations in the world.

IndustrySA speaks to Business Unit Manager, Mervin Govender to find out about the company’s new industry innovations and popular training opportunities.

The coal industry is once more on the rise after it suffered a major decline when the world began opting for liquid fuel. An initial source of energy for hundreds of years, the rising cost of oil and gas has since prompted an increase in the demand for coal.

South Africa represents the third largest coal producer in the world and currently holds 11% of the world’s total coal reserves. The coal mining industry plays a vital role in the country’s economy and while a large proportion of the coal produced is consumed by the South African energy sector, mainly power stations like Medupi, a staggering 70 million tonnes is exported each year via Richards Bay Coal Terminal.

first of its kind in Africa to use some of the most efficient and lowest emission coal-fired technology. The GMEP represents one of the largest mining growth projects in South Africa and by 2018/19 coal supply to Medupi is expected to be in full production.

With two new dense medium coal beneficiation plants on site, Govender explains, “both facilities are now ready.

We have a few contractors making small improvements to the plants with regards to dust control etc.” Grootegeluk currently has the world’s largest beneficiation complex.

Beneficiation is the treatment of raw materials, like coal, to improve their chemical and physical properties in preparation for further processes which add monetary value.

GROOTEGELUK COAL MINE

TRUCK AND SHOVEL

The Grootegeluk open-pit coal mine is situated in the Waterberg Coalfield, in the Limpopo province, currently employs more than 2000 workers. The company produces in excess of 18.8 million tonnes of coal each year. Mervin Govender, Business Unit Manager of Grootegeluk, explains that with the completion of the Grootegeluk Medupi Expansion Project (GMEP), Grootegeluk will also supply to the Medupi power station. An estimated 14.6 million tonnes of power station coal is needed every year for Medupi, the

Govender explains the conventional process of mining coal, often referred to as the ‘truck and shovel’ method, can be likened to “high level gardening”. The process involves, “marking it off and blasting it into loose material to create a stockpile. Big shovels are then used to scoop the coal up where it is put on to trucks, taken all the way to the tip bins and finally, on to the processing facilities.”

Although truck and shovel is a tried and tested method for the coal mining industry, an innovative new conveyor

PAGE 74 APR 14

GROOTEGELUK MINE

system has now been implemented at Grootegeluk. Rather than loading the coal on to the trucks, coal can now be transported out of the pit on a 6km conveyor belt to the processing facilities. Govender explains this conveying system is “much more efficient as it reduces carbon emissions and the heavy dependency on mining trucks.”

With 50% of South Africa’s remaining coal reserves held in the Waterberg coalfields, Govender attributes the efficiency of Grootegeluk to its world class mining operation. “We never stop innovating and improving,” he says. “It is a highly complex situation. We have the mine and the processing facility on one site where it is processed.

It is a massive complex and we are running three different products, the power-station product, the semi-soft coking coal and metallurgical coal, from the same complex.”

Govender adds that Grootegeluk has an abundance of technical flexibility which allows the company to alter its product amounts; for example pull back on semi-soft coking coal to respond to the more affluent market of power station coal. “Very few coal operations can do this,” he says.

PLANS FOR THE FUTURE With the paperwork finalised and mining agreement in place, plans for the Thabametsi mine, a greenfields

development, are now in bankable feasibility stage. With an estimated time frame of 2015-2025, Govender explains, “we are waiting for an offtake agreement, once we have this it should move very fast.” An offtake agreement is normally negotiated prior to the construction of a mine to secure a market for the future output of the facility.

With the demand for coal increasing, the international price is inevitably rising too which may affect future business.

“The market is never fixed and continuously goes up and down so despite there being a better price on the domestic market than on the international, we are compensated by the exchange rate,” Govender explains. This increase has not shielded further plans for expansion either with opportunities to supply coal to other markets, Govender explains, “We are innovative in finding these markets. We are not currently supplying to India but we are looking into it.

We export a lot into Europe too and are exploring different destinations to see if we can supply coal there as well.”

TRAINING AND KNOWLEDGE Grootegeluk prides itself on its training facility opportunities in Waterberg. The company has an impressive capacity to train up to 350 artisans, including electricians and mechanics.

Govender explains, “this mine is not a short-term mine so

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COMPANY PROFILE

we invest heavily on our people. We spend a lot of money on our front line supervisors and pay particular attention to our bottom line employees.” He stresses the importance of these workers adding: “There is a lot of value to be extracted from the bottom. We ensure a lot of knowledge is handed down to these workers to make sure they understand mining processes in a lot of detail. From there, they then have the confidence to take this product of the right quality to the next customer.”

Training in the mining industry is essential, especially with expansion plans and increasing demands. Govender believes this preparation is imperative for Grootegeluk, looking to the future he explains: “If you have such a high dependency on one mine, you must ask yourself; what should the management at that mine look like? It is not just about the mine and Eksom but about the country as a whole. The right people are needed to take this forward and deliver the goods,” he says.

“We believe that what we do now with regards to training our senior management; making sure they understand the procedures, how to manage themselves, how to manage their team and how to manage the organization; will move the company forward and result in superior products.”

FRONT LINE INNOVATION

PAGE 76 APR 14

Grootegeluk has already come up with a unique and innovative solution that sees HR employees being moved to the front line. “Employees in the admin offices have been given the opportunity to be trained, free of charge, in a production skill. As part of their development, they are starting to understand the implications at the bottom and are using that information to start improving their processes,” explains Govender.

Giving a clerk the opportunity to train free of charge as a truck driver, ensures that if there was a business interruption, Grootegeluk has enough people to drive the product to the power stations, causing minimal impact to business.

“Although this is a different way of thinking, it has proven very popular with employees and we feel this will help us in moving forward,” says Govender.

BIG PLANS In 2012, Grootegeluk launched their vision to produce an incredible 40 million tonnes of coal by 2020. “We are trying to create the same goal so our people on the ground understand their contribution. Our destination is very clear and each year we assess how close we are to that vision. We see improvement on this mine as our priority and welcome suggestions at any time. Above all, we feel we’re moving forward,” concludes Govender.

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The front line of construction The front line of

WILLIAMS HUNT

construction

info@hcmsa.co.za Hitachi Construction Machinery Southern Africa Co (Pty) Ltd. Hitachi Construction Machinery Southern Africa Co., Limited Atlas Road Boksburg North Tel: +27 (0) 11 841 7700 Atlas Road Boksburg North Tel: +27 (0) 11 841 7700

MAR 14 PAGE 77

COMPANY PROFILE

One of the largest and most efficient uranium mines in the world…

Editorial: Harriet Pattison Production: James Clark

In the Erongo region of central west Namibia a project of global significance is currently taking shape under the supervision of Swakop Uranium, established in 2006 to explore, evaluate, develop and produce uranium oxide (U3O8) as a source of fuel conversion for lowcost, environmentally-friendly, nuclear power.

What is the first thought that enters your mind when you hear the word ‘uranium’?

Is that thought to do with safety? Is it to do with danger? People often correctly associate uranium with the nuclear power industry but wrongly associate this valuable element with disaster, contamination and all things nasty.

However, uranium itself is a natural metal like gold or lead but much more abundant. It is found in most of the Earth’s rock, soils, rivers and oceans and is used mainly to produce electricity and power some sea-going vessels.

So what is that makes people uneasy when Uranium is discussed? Probably the fact that uranium-235, a concentrated or ‘enriched’ uranium, has been used as the fissile explosive material to produce nuclear weapons.

But, like most elements, when handled correctly uranium is widely considered safe; trace amounts of it can even be found in food and in our bodies.

Its reputation has changed in recent years and since nuclear power has become more popular and is now being actively supported by many experts around the world – especially in South Africa where planning for six new nuclear power stations is currently underway – the demand for uranium has been on the increase.

PAGE 78 APR 14

Uranium’s most useful property is that its atomic structure can be changed in a process that releases energy in the form of heat. Inside a nuclear reactor, this heat is harnessed to generate electricity without producing greenhouse gases - an attribute which coal and gas power stations cannot match.

So where does uranium for use in power stations actually come from? It is mined, through various methods, from countries around the world; mainly Kazakhstan, Canada, Australia, Niger, Russia and of course, Namibia.

HISTORIC FIND Namibia has been supplying uranium to world markets since the 70’s. It was originally discovered in Namibia in the Namib Desert in 1928 but it took over 40 years for uranium to be produced at Rio Tinto’s Rössing mine. In 2010, worldwide production of uranium reached over 53,000 tonnes with Namibia producing just under 4500 tonnes in that year.

Back in 2008, Swakop Uranium’s owners at the time, the Australian exploration company Extract Resources, announced a major new uranium discovery beneath the sands in the Erongo region of central west Namibia,

SWAKOP URANIUM

around seven kilometres south of the Rӧssing Uranium Mine.

The first blast on the site, releasing 200 tonnes of uranium-bearing granite, was detonated by the Namibian Minister of Mines and Energy in June 2010.

Progress then moved very quickly with EIA approval in January 2011, Definitive Feasibility Study (DFS) results in April 2011, EIA approval in July 2011 and a mining license granted in December 2011.

The Namibian Ministry of Mines and Energy granted the licence to Swakop Uranium to develop the Husab mine with the goal of supplying uranium for nuclear power stations around the world.

2012 was again a busy year for in the development of the mine with a change in ownership in March (Taurus Minerals takes over Swakop Uranium’s 100% shareholder, Extract Resources – Taurus Minerals is owned by China General Nuclear Power Company Uranium Resources Co Ltd and the China-Africa Development Fund) and an Engineering, Procurement and Construction Management (EPCM) agreement signed in November.

Later that month, the Namibian government-owned mining company Epangelo Mining Company took a

stake in Swakop Uranium, leaving the company owned 90% by Taurus Minerals and 10% by Epangelo.

2013 saw the first water pumped to the site (Feb), the ground breaking ceremony (Apr) and the arrival of haultruck dump bodies (Jun) - one of the largest freights ever carried by road in southern Africa.

This year; power has been connected, investment into the community has commenced and the official start of mining activities was celebrated following a detonation on March 12th.

When in full production, the mine will be the second largest uranium mine in the world and will produce approximately 15 million pounds per annum of uranium oxide. This will make Namibia the second largest producer in the world behind only Kazakhstan.

IT’S A LOT OF FUN Director of communications and stakeholder involvement at Swakop Uranium, Grant Marais, tells IndustrySA that the project is on track and extremely exciting.

“It’s a lot of fun, there is a lot going on,” he says.

“When I joined the company there were six people and I’ve seen significant changes, it’s been an amazing

APR 14 PAGE 79

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journey going from an empty field with a few holes in it to seeing what’s happening today on site; I definitely don’t get bored, I come in first thing in the morning looking forward to the day – how could you get bored of the second biggest uranium mine in the world?

“We are in the development/construction phase.

Internally, every item is specifically detailed with start and end dates and it all falls under a very complex programme. We are past the civils and groundwork and moving into construction.”

As for control over the construction of the mine, Swakop Uranium is in command although a joint venture partnership is carrying out most of the work.

“Tenova Bateman and AMEC is the joint venture EPCM partner called Husab Project Joint Venture (HPJV) and they are doing the project under our project management team. So, Swakop Uranium control HPJV who are building the mine,” explains Marais.

The current activities on site are wide-ranging. It is a busy place with activities, everything from pre-stripping to the assembly of the massive dump trucks that will be used in daily operations when the mine begins producing.

“Pre-stripping started recently,” says Marais. “You’ve got an ore body underground at varying depths and whilst we are constructing the mine and the process

PAGE 80 APR 14

plant, we are already pre-stripping the overburden and getting ore through the crusher so we can build a stock pile. So when the processing plant comes on line, the product can start going through smoothly.

“Overall, it’s a massive plan that has to come together. Equipment is being assembled, we are starting with training of drivers and we are moving all of the equipment to the correct area of the site.”

A POSITIVE START Progress since the mining license was granted in 2011 has been swift and, to date, all the deadlines have been met.

“As for second quarter 2014, we are on target – so far so good,” says Marais.

As the construction phase comes and goes, the focus will inevitably turn to mining and Marais explains that the emphasis will be on guaranteeing quality and quantity is delivered to the processing plant.

“Currently mining is just a small part of the process, but when the mine is finished it will be a massive part and we need to ensure that there is sufficient and good quality ore for the processing plant to turn into final product.”

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Even though full-scale production is still years off, plans are well underway to secure customers for uranium from the Husab Mine.

“We are busy negotiating off-take contracts already and those are with various utilities worldwide, not only the Chinese, despite the fact that this is 90% owned by the Chinese government. We are negotiating with agents so we can have off-take agreements signed prior to exports being taken,” says Marais.

Although China will be the major client, other utility providers from around the world will make up the group of customers. However, uranium is set to be an important investment for China as it looks to address its issues with air pollution. Even though the Husab mine will be a major contributor, it will still not satisfy the entire demand from China so Swakop Uranium’s exploration will undoubtedly continue.

“The Chinese have made a strategic decision around uranium. They said this is a strategic resource that they require to clean up their atmosphere because they are building nuclear power plants that will have no CO₂ emissions. Pollution has a massive impact in China. The need for uranium is on-going as one of the Chinese core power requirements is going to come from nuclear.

Swakop Uranium will supply that product to them. The decision has not yet been made as to what percentage will go to China and what will go to other utilities but I can tell you now, we will not produce enough to supply all of their reactors,” explains Marais.

Although mining is now officially underway, delivery to customers is still a long way off. For now, each milestone is an achievement in itself for this monumental project which is not just significant for Namibia, but for the world as a whole.

Next month we will explore Swakop Uranium and the Husab Mine further and understand more about its operating requirements and its impact on the local community.

.

“As for second quarter 2014, we are on target – so far so good” APR 14 PAGE 81

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Back to nurture Editorial: Colin Chinery Production: Ajuanne Payne

When Munich-based Allianz Global and Corporate Speciality (AGCS) targeted a major growth strategy for South Africa and the Sub Saharan region, it tasked Canada-based Delphine Maidou to lead it. “We’re investing in Africa, because we believe in the continent,” the underwriting and marketing high-flyer and Africa-returnee tells IndustrySA.

© Allianz

For Delphine Maidou arriving in Johannesburg 18 months ago as newlyappointed Africa CEO for Allianz Global Corporate and Specialty (AGCS) after 20 years in North America, it was destiny’s appointment with opportunity. “I have always wanted to come back to Africa, and it’s been a timing issue.”

By late 2012 the timing was right. The Munichheadquartered Group was embarking on a new and ambitious African regional strategic direction, and the Burkina Faso-born former head of AGCS’s Market Management for Canada was flying in to lead the drive for major pan-African growth.

The moment was right for another reason; the bullish economic outlook for Sub Saharan Africa. The International Monetary Fund forecasts 2014 output growth in the whole SSA region at 5.7% - significantly better than elsewhere in the world - a view shared by the World Bank.

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Allianz offers companies specialist risk consulting support as well as property, financial lines, engineering, marine, liability and energy insurance from its South African office. The company also provides access to all the complementary products and services offered by the Allianz Group and its network in over 150 countries.

Although Allianz had a presence in Africa for years - mainly in support of the African operations of big multinationals - it wanted a bigger share in emerging markets. And at the start of 2012 a project team of mainly African Allianz employees and headed by Ms Maidou was tasked with investigating the opportunities.

“We did a lot of work before my parachuting into here.

I was in two roles; closing up in Canada and starting here in South Africa. Now some two years later, it’s all going very well.”

DOUBLE GROWTH So well that AGCS now offers its services to an

AGCS

increasing number of South African and African clients, and the Johannesburg headed business is growing rapidly. “In one year we have doubled our size and looking to double again in the next two years in both premiums and turnover.”

But before take-off came the big questions: “How do we do it, when is a good time to launch, who do we hire?

In the industrial division of the Group we only look at large corporate risks, with a lot of construction projects and large properties. So we asked ourselves how many clients across Africa are there in our target segment?

“So at the beginning it was important we had a local team that understands the market and has relationships within it. But we are also working for a global company, and the team we have locally would not necessarily understand how Allianz works as a whole.”

The answer was a recruitment mix; South African and ex-pats that understood Allianz. And between the two says Ms Maidou, she has been able to create a good balance,

an 80% African team following the global rules and principles of Allianz and at the same time adapting them to suit the African market.

“Initially there were only two lines of business, and we recognised that to expand we needed to bring our full spread of products into the continent.

“South Africa is a springboard into Africa for many companies. We follow our customers and now we are seeing business from right across the continent.

“We have gone from a team of around 19 to 42 where it is today, bringing all the lines of business globally into Africa. So whatever you can get with Allianz in London which is where the African market tends to go to - we are now saying you can now get with Allianz in South Africa.”

CONTINENT IN CONSTRUCTION But Africa and South Africa are two different structures, says the mother of two CEO. “Leave South Africa and you are in a different world. And each African country is

APR 14 PAGE 83

COMPANY PROFILE different one from another.”

So AGCS is targeting nations undergoing significant economic development, major economies such as Mauritius, Kenya, Nigeria and Tanzania. “We have a continent that is in construction, whether in mining or infrastructure.

“But come daytime and a problem, the client needs to know the company they are with is a partner who will go with them into the claims process and then pay so they can move on with their operation” “But we are also looking at regions. In eastern Africa for instance there are a lot of construction projects, with

© Allianz

PAGE 84 APR 14

roads going from one country to another, and we are doing insurance on roads and bridges, looking not only country by country but also where the investment is going.”

At the end of the day says Maidou, the claims function is a market facing issue. “This is what the client is buying, otherwise it’s just a promise that allows him to sleep easier at night.

“But come daytime and a problem, the client needs to know the company they are with is a partner who will go with them into the claims process and then pay so they can move on with their operation. And this is key for us.”

A chartered underwriter and former Africa High School pupil with degrees from the universities of Boston and Pittsburgh, Maidou has worked for Allianz Global

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“When the Group decided to look more closely at emerging markets, I was approached to lead the team here in Africa, and my international experience has helped me a lot.

NO WAY BACK “Now going forward the plan is to have a team that is increasingly local and ultimately to have an Allianz in Africa that is run by Africans.

“We’re investing in Africa, because we believe in the continent. And looking ten years ahead I’m hoping we will be in the position where we will be using our strength right across Africa to help development.

“Without insurance there is no growth. And for fast-growing Allianz Global Corporate and Specialty in Africa, there is no way back.”

.

© Allianz

APR 14 PAGE 85

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Speeding towards increased market share

Editorial: Roland Douglas Production: James Clark As one of the oldest automotive brands in the country, Williams Hunt has undertaken a long and challenging journey to the top. Even though the company has seen much success there is still a drive to further increase market share. Ben Robertson, New Vehicle Sales Manager at Williams Hunt Fourways explains more…

The transport industry in South Africa is vital for the continued growth of the economy. The government has highlighted the industry as a key contributor to South Africa’s competitiveness in global markets.

Transport incorporates many market segments from corporate logistics, people movement, market migration and international market penetration to name just a few sectors but probably the most recognisable and familiar of all of these is the private vehicle market; where the general public buy new and used cars and other vehicles.

Without this sector what would business be? Employees need transport to get to work, customers need their cars to get to the shops, delivery companies need their vehicles – it is imperative that the automotive sector thrives.

One of the industry leaders in this sector is Williams Hunt, a company that has been proudly serving the

PAGE 86 APR 14

South African public since 1903 as part of the General Motors South Africa (GMSA) family. Williams Hunt provides full sales and after sales backing for all GMSA vehicles, including honouring all warranties, service and maintenance plans, parts supply and all other areas of after sales support for Chevrolet, Opel and Isuzu vehicles.

The company also provides full after sales support for Hummer, Saab and Cadillac brands.

New Vehicle Sales Manager at Williams Hunt Fourways, Ben Robertson tells IndustrySA that the business has its sights set firmly on increasing its market share throughout 2014.

“What we would like to do is use our existing structure to grow our market share by 2-3% so we can meet our target share, set by the manufacturer, of 12%. We need another 2% of all cars sold in South Africa to be from our brands. This target market share is split, under the GM

WILLIAMS HUNT

banner, between the three brands that we sell; 8% for Chevrolet, 3% for Isuzu and 1% for Opel,” he says.

This target will be achieved by leveraging Williams Hunt’s national footprint which comprises 19 GMSA franchise outlets and around 800 people.

As for expanding this national footprint, the company has come a long way since its establishment and is looking for continued growth. However, the manufacturer does not want the market to become overly congested so there are limits to the amount of dealerships that can be opened as Robertson explains.

“The amount of dealerships is determined by the manufacturer. We started out with six in Jo’burg, one in Cape Town and one in Durban and over the years we have acquired other dealerships along the way.

“We’ve just taken over the Reeds Group which had seven branches in the Cape Town area but there’s a

limited amount of available points from one manufacturer and you can’t really go beyond that. Unless there’s a single point dealer who’s battling financially and it suits us to grow our footprint by taking them over, it’s not something that will benefit.

“It’s not like a food chain; we don’t want to be on every corner. The manufacturer only allows a certain amount of dealers because each needs to be able to be profitable and have its own customer base so we don’t want to swamp the market.”

When it comes to cross-border expansion, a strategy that is now almost the norm for many South African companies, Robertson says that the business is not currently looking to focus too much on Africa.

“It is not currently within our plans to have a multinational footprint,” he says. “There are GM dealers across Africa but it’s not really on the cards for Williams Hunt.”

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Nevertheless, GMSA remains one of the top three car brands in the country with the Chevrolet Utility remaining ever popular and the Chevrolet Sonic making waves in its sector and the Williams Hunt outlets are a huge part of this success.

A LONG JOURNEY Williams Hunt has a long and fascinating history and its roots stretch as far back as 1886 and visionary of the time Henry Hunt, an Englishman who had moved to SA with the hope of making a fortune on Kimberley’s diamond fields.

After struggling initially with various business ventures, Hunt moved to Johannesburg and saw a gap in the transport market; at the time the horse and carriage was the recognised method and if you couldn’t afford a horse you bought a bike. Hunt, along with a partner, opened a bicycle shop in 1903 in downtown Jo’burg, unwittingly creating the foundations for the success of Williams Hunt.

In the beginning, the business was a great success but after time began to struggle and Hunt himself began to struggle; failing in attempts to bring his wife out from London. Eventually, two of Hunt’s three sons joined him in SA and helped with the running of the business but it still wasn’t enough. Finally, Hunt’s wife arrived in SA and bought with her a much needed cash injection of £300.

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This resulted in a change of fortunes for the business but the real turnaround came when the Hunt’s helped introduce the Indian Motor Cycle to SA. Previous attempts to introduce motorbikes to SA had failed mainly because they were difficult to maintain and could not handle the rugged SA conditions. The Indian however,

“We need another 2% of all cars sold in South Africa to be from our brands” was sturdier and the Hunts’ popularised the vehicle with innovative marketing stunts.

Following the success of the bike, the first Williams Hunt branch was opened in 1914 in Durban and more followed.

Even though the Indian was popular, times were changing and the future of transport was the car. After dipping into the market, the Hunts found the perfect vehicle for SA terrain during a trip to the USA - the Chevrolet 490. This sparked the beginning of a long standing relationship between the two companies.

Today, Williams Hunt is under new ownership. “It has changed hands a number of times over the years. It has been part of the Unitrans Group for quite someGrain time,Silo

WILLIAMS HUNT probably around 20 years now, and recently Unitrans was taken under the wing of Steinhoff International and that is our holding company,” explains Robertson.

The set-up of each of the motor businesses under the Unitrans brand has its own targets and its own management and Robertson says that everything is geared towards increasing market share.

“Unitrans has many divisions including a dedicated motor division. Within the group we have different franchises including Nissan, BMW, Mercedes Benz, General Motors, Toyota and even a MAN truck dealership. Each of these franchises has a Franchise Director who heads up the brand within the group and then each branch is run by a Dealer Principal.

“You have targets that are set by the manufacturer on volumes and purchasing of parts, then you have financial targets that are set by the cost structure of your business and by Unitrans. It’s all based on a market share penetration strategy,” he says.

PEOPLE POWER Under the Dealer Principal and Franchise Director, there is a mix or expertise and skills. Williams Hunt is very keen to harness these skills and develop them to ensure that customers get the best possible service. This means

training employees to the highest of standards.

“We are very open to training new people in the industry” says Robertson, “however; a large amount of our workforce is on the technical side which means they need to get a technical qualification that will allow them to work on the vehicles.

“We have a very strong apprenticeship programme across the country so we take on people and train them up so they can filter into our workforce.”

Robertson also explains that the company is very active in the community and, together with GMSA, places a large emphasis on upliftment. He says that a very aggressive affirmative action plan to grow the business’s BEE component is in place and the company is also open to working with individual dealers to support worthy projects.

“Together with GM we are involved in schooling projects where we provide food for children and we are also involved with individual dealers in the local community; whatever the need may be in the specific area, we identify it and support it best we can,” he says.

DRIVING FORWARD The future holds much promise for Williams Hunt.

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WILLIAMS HUNT has managed to position itself amongst the leaders in the industry. When asked which part of the business is the most important for growth over the coming years, Robertson suggests that each division supports the next but sales and service remain prevalent parts of the business.

“Of course, there is certainly a drive for new car and used car volume” he says “but we wouldn’t have a business if it wasn’t for the service centre. Obviously, the parts centre supports the service centre and the finance and admin centres are the support structure for the other divisions so all parts of the business work hand-in-hand.”

When it comes to marketing, the Williams Hunt brand is extremely recognisable; the shimmering blue lights that illuminate the Fourways dealership at night make it quite the sight but of course lighting is not the only promotion that goes on. The company is keen to let the products speak for themselves and actively encourages customers to get behind the wheel.

“A lot of the time, we will supply people with test vehicles for their honest and unbiased opinion. It’s something we do on an on-going basis; we like to invite the public to ‘ride and drive days’ so they can judge the cars for themselves.

“We’ve had one recently in Kyalami and another

coming up in Nasrec. It’s a great opportunity for us the let the people see the vehicles, touch and feel, and experience ride quality so it is a strategy of ours and allows people to experience the brand first hand,” says Robertson.

And it seems as though this strategy is working as Robertson says that Williams Hunt is a top player in terms of market share across the entire country.

“There’s always a battle for the top three positions in our market. I would definitely peg us as a consistent player in the top five as far as market share goes in South Africa,” he says.

With a dedicated and highly skilled team, an ambitious and aspiring leadership team and the quality and world renowned expertise of GM behind it, it seems that Williams Hunt has all the components to drive forward quickly and achieve its target of increased market share while delighting drivers along the way.

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“We have a very strong apprenticeship programme across the country”

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COMPANY PROFILE

Climbing into Africa Editorial: Roland Douglas Production: Chris Bolderstone

PERI is the largest manufacturer and supplier of formwork and scaffolding systems in the world. With 6500 employees, 52 subsidiaries and 110 efficient storage sites, PERI serves its customers worldwide with equipment and a broad range of services related to formwork and scaffolding technology. In Africa, this innovative company is making waves in the construction industry and has an impressive portfolio of successfully completed projects.

Operating in the South African construction industry has been something of a difficult task over the past few years. Since the widely reported boom that surrounded the industry during preparations for the 2010 FIFA World Cup, construction companies and associated businesses have had mixed fortunes.

Even the big name players have reported challenging conditions; mainly due to the tough economic climate, legacy issues and rising costs of fuel. Aveng said that despite reports of an upturn, it was still yet to see any real improvement in infrastructure spending; WBHO has seen operating profit and headline earnings fall and even Murray and Roberts has reported challenges.

But there are always two sides to every story and there has been a silver lining for many firms in the shape of Africa.

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The continent has provided massive opportunities for expansion and while the South African market continues on the recovery path, some firms have found great successes whilst operating across borders.

Take Group Five for example; it has said that the rest of Africa, mining and cross-border energy projects, and Africa’s general infrastructure needs are likely to boost the pipeline of work. So is expansion on the continent the answer? Well, for any company that is suitably positioned to move into Africa, yes.

That is exactly what PERI SA has done. As a subsidiary of the global PERI Group, which is the largest manufacturer and supplier of formwork and scaffolding systems in the world, PERI SA has expanded its footprint and is now looking to increase its activities in East, West and Central Africa.

With representative offices already established in

PERI SA

Mozambique, Namibia and Angola, the head office in Stellenbosch has created the perfect springboard for a strong move into the African market – where it has already seen significant successes.

The company boasts some major projects as part of its portfolio and the German-South African engineering skills that have been demonstrated have provided the perfect base for PERI SA to move into neighbouring countries.

PERI formwork and scaffolding systems were used during the construction of Greenpoint Stadium in Cape Town, Moses Mabhida Stadium in Durban, Mbombela Stadium in Nelspruit and the Vodacom Park Stadium in Bloemfontein.

Custom designed PERI solutions were used during the upgrading of the Koeberg interchange. This project provided a web of complex issues as road and rail traffic

could not be interrupted. Numerous contractors and consultants were involved as well as engineers, projects managers and of course the customer, the Western Cape Provincial Government. Products used included; the VARIO GT 24 Girder Wall Formwork, the MULTIFLEX Girder Slab Formwork and the HD 200 Heavy Duty Prop, and of course, all met the stringent safety standards and Codes of Practice for Temporary Works set out by the relevant organisations.

Other major projects in Africa include the Fairlands Administration Building in Johannesburg, the Central Bank of Nigeria Administration Building in Lagos and the Lekki Ikoyi Bridge, also in Lagos.

NIGERIAN SUCCESS The administration building for the Central Bank of Nigeria, on Lagos Island; in a city aiming to become

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COMPANY PROFILE

the financial centre of Africa; threw up many challenges for contractors. The 21 storey, 100m tall high rise structure is home to around 2000 employees and even has a landing pad for helicopters on the roof. Because of the complicated foundations, proximity to the neighbouring buildings and extremely cramped site conditions, this project needed innovative solutions and leading building contractor, Julius Berger Nigeria, found exactly what was needed with PERI products.

PERI provided all of the formwork and scaffolding for the project and also delivered professional training for the construction site team. The building shell facade was scaffolded with PERI UP and the company says: “The scaffolding planning was created with the help of PERI CAD software and took into account the

PAGE 94 APR 14

varying ground plans featuring numerous projections and recesses as well as the three crane towers with corresponding fixing struts.

“As a result, planning reliability and optimum material utilization could be achieved especially for those scaffold sections reaching up to 100m in height.”

The project made use of a number of other innovative PERI solutions and the company’s expertise allowed the contractor to work to maximum capacity.

PERI’s work in Nigeria is not isolated to this one project; the company was also heavily involved in the construction of the Lekki Ikoyi Bridge.

PERI engineers combined two ACS (Automatic Climbing System) and RCS (Rail Climbing System) climbing systems to create a project-specific, optimally

PERI SA adapted formwork solution. PERI solutions allowed construction to move rapidly, even with a wide range of geometric and safety-related challenges to consider.

The first cable-stayed bridge in Nigeria, Lekki Ikoyi Bridge connects two districts of Lagos, Lekki on Victoria Island and Ikoyi on Lagos Island. With a total length of 1357m and a pylon which reaches 90m high, this is yet another mega-structure which PERI can add to its project portfolio.

HIGHEST ACHIEVEMENTS Producing quality work does not go unnoticed and PERI SA has realised this after being awarded a Golden Arrow from PMR Africa in 2010, 2011 and 2012. A random, national panel of 120 respondents comprising building material retailers and representatives of construction companies rated PERI as the best supplier in the formwork and bricks category.

This award confirms PERI’s operational excellence and helps to set benchmarks in the industry. The company said it was very proud of the accolade and hoped to retain it in the future.

Reinforcing the company’s quality credentials even

further, PERI SA has received ISO 9001 certification.

The company says that operating to these high standards has allowed for a continued focus on PERI guidelines of “best customer service, striving to achieve excellent work and respect for the individual.”

So, as the South African construction industry continues on its recovery path and Africa continues to offer potential, it seems that PERI has made the right decision to up its expansion drive on the continent.

It has been reported that Kenya, Uganda, Zimbabwe and Rwanda and the DRC could provide fruitful opportunities and with contractors clearly happy with the way the business is set up to provide innovative, flexible on-site solutions; it looks as though there is no limit to the heights it can reach.

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“The scaffolding planning was created with the help of PERI CAD software and took into account the varying ground plans featuring numerous projections and recesses as well as the three crane towers with corresponding fixing struts”

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COMPANY PROFILE

The driving force behind nuclear development Editorial: Tim Hands Production: Chris Bolderstone At a time when, more than ever, energy demand in South Africa is on the continual increase, nuclear power is the subject of intense focus. The South African Nuclear Energy Corporation (Necsa) is the state-owned company charged with driving the research and development centred on harnessing its potential, but also with allaying public fears around what is, historically, a much-misunderstood concept.

Necsa realises, along with many other eminent individuals in the field, that these developments must be undertaken as quickly as possible in order for the country to benefit most fully from such a prominent industry.

With its primary functions being to undertake and promote research and development in all things nuclear technology-related, the South African Nuclear Energy Corporation plays an important role in what is becoming an ever-more urgent desire to fully exploit the potential of nuclear power in South Africa. Its home remains the Pelindaba site, just 30 km west of Pretoria, selected in 1959 when it was decided that the country’s nuclear research and development would be conducted by the company, then known as the Atomic Energy Board.

Skip forward to 1999 and Necsa’s existence was brought about by the restructuring of what had come to be known in the intervening years as the Atomic Energy Corporation, coupled with a new mandate to which it remains true today.

Alongside its central focus on research and development surrounding the peaceful implementation of nuclear processes, Necsa is also concerned with the processing, reprocessing and enriching of source material, and working with the various individuals and organisations falling within this bracket of operation.

The presence of its sizeable uranium reserves and the extensive mining industry around this primary energy source

PAGE 96 APR 14

help to make South Africa one of the world’s foremost producers of the element. At present, the country has two nuclear reactors which serve to generate 6% of its electricity, with the first of these having begun operations in 1984. The necessity to depart from a previously heavy reliance on coal, due largely to the abundant coal deposits in the north-east of the country, centre around concerns over price increases, exhaustion of reserves and global warming. This is where Necsa’s vast range of responsibilities within the field makes it absolutely pivotal to the country’s quest to fully exploit its nuclear possibilities. Working from three regulatory frameworks, the company’s primary function is to serve as the central force behind nuclear energy research, development and innovation in South Africa. A particular focus of this is on applications relating to medical isotopes production – it is in fact the main supplier of medical radioisotopes in Africa, through the Safari 1 research reactor, and can supply up to 25% of the world’s molybdenum-99 needs. Necsa is heavily involved in all aspects of the nuclear fuel cycle, in particular decommissioning and decontamination of previous strategic nuclear facilities, and management of nuclear waste disposal on a national scale.

Necsa is also governed by the provisions of the Nuclear

SOUTH AFRICAN NUCLEAR ENERGY CORPORATION

Energy Policy of 2008, which directs the organisation to develop viable nuclear fuel cycle operations for South Africa.

This is something which has become increasingly important in light of the energy crisis faced by the country, and an area where Necsa continues to play a key role in using its experience and expertise to advise on the nuclear new-build programme for South Africa.

A period in early 2008 illustrated neatly the sharp rise in South Africa’s energy needs, with the country’s demand for power coming dangerously near to its total installed net capacity. With this in mind, a budget speech in May 2011 saw the Energy Minister, Ben Martins, affirming that 22% of new generating capacity by 2030 would be nuclear, with Necsa allocated R586 million in its pivotal role in research, development and innovation around nuclear energy in its quest to provide solutions to the energy demands.

NUCLEAR AFRICA 2014 The Nuclear Africa 2014 Conference sought to project an image of the future of nuclear power in South Africa, with a view to bringing all parties involved into productive interaction in an open and transparent manner.

It was hosted by Nuclear Africa (Pty) Ltd, a nuclear

project management company operating out of Pretoria, which is fully involved in all areas relating to nuclear manufacturing. A primary goal of Nuclear Africa is to allay the continuing public fears which surround this form of energy, and promote what is in reality both a reliable and a cost-effective form of energy production.

It is without doubt a complex form of power, and so it is important that the public is exposed to an accurate portrayal of the progress in nuclear power development in South Africa.

Speaking at the event Ben Martins stated South Africa’s objective to be, “self-sufficient in all aspects of the nuclear chain.” This would include uranium mining, enrichment, nuclear fuel manufacture as well as the construction, operation and decommissioning of nuclear power plants.

It became apparent from his speech that specific details of the nuclear build programme in South Africa were imminent, with Martins also urging the development of local nuclear skills and research and development, as, “localisation will result in opportunities for local industry.” Clearly an industry full of potential throughout the economy, these were encouraging words from the Minister of Energy, intimating that there is much to

APR 14 PAGE 97

COMPANY PROFILE

be gained from fully engaging with the development of nuclear power.

The Nuclear Africa Conference also looked to bring together a significant cross section of nuclear power players to engender professional interaction, and strengthen technological and economic exchange concerning the construction of the new nuclear power plants for South Africa. Martins himself stated the importance of companies developing these connections internationally, in order that, “when the [nuclear] rollout is announced and commences, there will be vibrant partnerships between South Africans and international role-players.”

This universal approach is something Des Muller, Director at Group Five Nuclear Construction Services, spoke of at the Nuclear Forum in February; “the United Kingdom probably would be a good example of this level of multilateral engagement where the private and public sectors are working closely together to put through various skills development programmes, working through universities, through various organisations. That is something South Africa is considering and needs to start embracing.”

Development of both working relationships and of skills throughout the country’s workforce came to be a central theme of the important and revelatory information conveyed at the Conference. However, as is becoming quickly apparent, this potential that nuclear clearly offers needs to be made a reality.

Necsa CEO, Phumzile Tshelane was on hand at the summit to detail the need of a more immediate approach in promoting the expansion of nuclear energy in South Africa. Tshelane embodied the drive and ambition behind his company’s continual quest for development, affirming that, “we need to talk about nuclear today. Let’s talk about it differently, with action plans in mind.” He expressed frustration at a process which does not echo the need expressed by various individuals for rapid action, compounded further by the revisions being made to the 2010 Integrated Resource Plan – which will provide for the targeted 9600MW of nuclear power; “What is it that drives South Africans not to make these decisions, or to be slow to make these decisions?” he queried.

The danger South Africa of course faces in this respect, is that these frequent delays in making decisions and committing to projects will lead to other countries emerging and overtaking South Africa in this field. With the experience and expertise on offer from Necsa, which has already proven itself more than capable of undertaking significant projects of this type with its manufacturing of

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fuel for Koeberg and the Safari Research reactor, South Africa has the capability to have a full value chain of nuclear energy. Martins has previously stated exactly this, in his address at the regional forum for the South African nuclear industry Atomex Africa in February. He affirmed that the government is committed to becoming globally competitive in the nuclear sector, citing the three key facets guiding the government as localisation, skills transfer and job creation.

The engagement within the sector will do much more than merely serve to meet the country’s increasing energy demands, however - Martins describes the “new vistas of career opportunities,” which will be opened up to South Africa’s pupils and students, with a continual focus on creating a better life for its people.

The concept of this field having such diverse and far-reaching benefits is a sentiment echoed entirely

“We need to talk about nuclear today. Let’s talk about it differently, with action plans in mind”

by Necsa’s Nurad division acting group executive Ayanda Myoli. The development of the country’s nuclear ambitions would see the expansion of industries stretching from agriculture and food to medical and manufacturing. With the nuclear industry currently responsible for around 3000 direct jobs, the nuclear build programme would add in the region of 27,000 jobs to the economy during the construction of the first four of six planned reactor units, leading towards the country’s proposed future energy mix, containing 9.6GW of nuclear energy by 2030. Again though, with a construction time of about five to ten years, Myoli stresses that the country has to fast track the building of nuclear reactors in order to fulfil the promise of nuclear spoken of so frequently and so highly. The US Deputy Secretary of Energy Daniel Poneman affirmed the, “great opportunities,” in nuclear power, and a, “burgeoning relationship,” with South Africa which could see the two countries working together in the sector. So many experienced, eminent individuals and groups are extolling the virtues of nuclear, and with Necsa as the driving force behind its research, development and innovation, South Africa could not be better placed to commit a future in which nuclear power plays a huge part.

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NECSA

ERMETO

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MAR 14 PAGE 99

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