ISA Issue 50

MAY

2015 ISSUE 50

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The gold standard in risk assessment The number one provider of risk assessment services in Southern Africa, Marsh Risk Consulting offers customised and innovative solutions across a range of insurable and non-insurable risks. IndustrySA speaks to Managing Director, Volker von Widdern, on the company’s growth and developments within the last year

Rand Mutual Assurance Providing compassionate assurance

Arrowhead Properties Finding value where others don’t

Gearhouse SA Stage entertainment

De Keur A Strong family bond

Shaping unique

solutions that Shine

Emerald Risk Transfer is currently

For more information on how Emerald

the largest Corporate Property and

can assist your Corporate clients, visit our

affiliated Engineering Underwriter

website or call us.

in South Africa, and underwrites

t +27 11 658 8200 W www.emeraldsa.co.za E info@emeraldsa.co.za

business

throughout

the

African

Continent.

The solution orientated approach of the Emerald team to create sustainable, quality products is part of their culture.

Find us on Facebook www.facebook.com/emeraldrisktransfer

This flexible approach, coupled with the

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support of their excellent Reinsurer panel,

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allows Emerald to be truly innovative.

The aim of the company is not to be the cheapest by cutting corners, but rather to be the best by offering expertise and skill.

Emerald writes business into the insurance licence of Santam Limited. Santam has a Standard & Poors rating of A- with a stable outlook.

Emerald Risk Transfer (Pty) Ltd (Reg. No. 1998/025512/07) is an authorised financial services provider (FSP No. 13893). Emerald is a wholly owned subsidiary of Santam Limited.

EDITOR’S PAGE

EDITOR Harriet Pattison SUB-EDITOR Ajuanne Payne WRITERS Colin Chinery Tim Hands Rebecca Bingley PROJECT MANAGERS Rick Liddiment Kieran Shukri Jodie Rettie Aaron Wick ADVERTISING SALES SALES DIRECTOR Andy Williams SALES EXECUTIVE Holly Graham STUDIO STUDIO DIRECTOR Martyn Oakley DESIGNER Harvey Tarlton ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson FINANCE DIRECTOR Scott Warman 2a Ardney Rise, Norwich, Norfolk, NR3 3QH, United 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. © East Coast Promotions Ltd 2015

Welcome to issue fifty...

This month is a special one here at East Coast Promotions, celebrating our 50th issue, we have covered a range of special events across South Africa in that time. While some have been sad, many more have been commemorative and this month we saw tributes and celebrations for Freedom Day; marking 21 years since all races, including the country’s black majority, voted in the country’s very first free and fair elections on 27th April 1994.

Speaking on the lawns of the Union Buildings in Pretoria on Freedom Day, President Jacob Zuma said: “We recommit ourselves as government to ensure that all policies and plans that we develop and implement, build a better future for our children and the youth.”

In this month’s issue, we revisit the number one provider of risk assessment services in South Africa; Marsh Risk Consulting. Speaking with Managing Director, Volker von Widdern, he explains the positive developments the company has seen since we last spoke in June last year - “As far as Marsh Risk Consulting is concerned we had a very good organic growth year in 2014 - well above inflation, well above 10%.”

Speaking with Danell du Toit, we follow up with De Keur on its latest innovative technologies in the Koue Bokkeveld region and its future plans for growth – We would also like to offer our condolences following the sad news on the passing of Gys du Toit.

And before he heads out into the desolate South African bush, IndustrySA chats with Hannes Lochner as he tells us about his latest project and what it takes to be a true wildlife photographer.

Get in touch with us online @industry_sa to tell us your own story of business excellence.

Harriet Pattison editor@ecp-ltd.com

PAGE 3

CONTENTS

3 EDITOR’S PAGE A milestone for IndustrySA

6 NEWS All that’s happening in South Africa

12 EnTREPRENEUR Pam Golding: queen of the property ladder

14 Innovation A lightbulb moment

18 Lifestyle SA Capturing the beauty of South Africa

44 PAGE 4

CONTENTS

22 Marsh Risk Consulting

70 De Keur

Assess risks, ensure profit

Close family ties

38 Industrial Logistic Systems Optimising storage solutions

76 Haw & Inglis Strong construction capabilities

44 Rand Mutual Assurance Compassionate assurance, for life

80 Gearhouse SA Putting on a good show

52 Arrowhead Properties

84 Lona Citrus

A growing property portfolio

A successful harvest

58 Standard Bank SA

90 Imperial Holdings

South Africa’s most successful bank?

The logistics giant

64 Swakop Uranium

94 Letshego

Development of the Husab uranium mine

Lending a helping hand

COMPANY PROFILES

70

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NEWS All that’s happening in South Africa

African Utility Week 12th-14th May 2015

Last week’s announcement of the Department of Energy that it has approved 13 new renewable IPP bids “signals the strong commitment of the South African government to continue renewable energy deployment.

We encourage the whole sector to anticipate these developments and continue helping South Africa to stabilise its energy sector and solve the load shedding problems”. This is according to Sliman Abu Amara, Area Manager Africa, DNV GL – Energy, a leading global testing, certification and advisory services company that has been working on the largest wind and solar energy projects in Africa, including South Africa, Egypt, Kenya and Morocco.

In South Africa alone, DNV GL has been involved in nine wind projects (including Dorper and Gouda Wind Farms), and one solar project. In Kenya, DNV GL is the engineering partner in the 300MW Lake Turkana project, which will be the single largest wind park in sub-Saharan Africa.

At the upcoming African Utility Week from 12-14 May in Cape Town, the continent’s leading renewable energy project managers, investors and technology

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providers will gather in Cape Town as part of the largest utility conference and expo in Africa. DNV GL is the exclusive diamond sponsor at the event.

“We have noticed a lot of things happening in the African market, in South Africa, in sub-Saharan Africa and in Northern Africa,” says DNV GL’s Abu Amara.

“The African market is ready for the penetration of larger scale renewable energy on the continent.”

“Everybody always smiles when you talk about solar in Africa” says Abu Amara, “the continent has abundant sunshine so solar is its most logical choice. There are several projects starting, with South Africa again leading the market. Morocco has developed a few projects and so has Egypt, Other countries are following suit but unfortunately it is still going too slow. And that is despite the fact that during the last decade, solar has become much cheaper.”

Abu Amara notes that “for African utilities to continue attracting investments in solar, they have to solve issues related to grid integration. In 2020, we will see very strong deployment of solar technologies in Africa, like never before.”

DNV GL also sees Egypt as a renewable energy market to

NEWS

watch: “They are very ambitious in terms of renewable energy with a target of 20% renewable energy in the country. The political instability has caused delays, but the current government is dedicated to enable financing of renewable projects. We see Egypt as a very important market for the renewable energy sector – it is going to be growing very fast.”

According to Abu Amara, DNV GL is very selective about the markets it operates in. “We see a lot of potential in many countries but we are more interested in their governments and the utilities that have to implement the commitments. There has to be political will to do something and improve the situation in their countries. We have established excellent relationships with utilities, with governments, but also with investors and developers. When we arrive in a country as an independent, third party electrical engineering company and start with a pioneering project, we assist the project developer with the technical challenges and boost confidence, making the project visible.”

“We want to be South African in South Africa” During the upcoming African Utility Week, DNV GL wants to demonstrate its commitment to the development of the power sector in Africa. “We have identified the challenges that this sector faces in these countries through our experiences. We

have identified the issue of capacity and we have now developed a strategy to localise in terms of resourcing, working with universities in African countries to empower Africans to make DNV GL localised. We want to be African in Africa and we want to be South African in South Africa.”

The company will also release findings at African Utility Week from a large survey for Africa regarding three dynamics reshaping renewable and grid connection. “We know that renewables and the grid is a complex issue worldwide”, says Sliman Abu Amara. “It is the same in countries such as Germany and the US, but we are also aware of this from our work in South Africa, Tanzania, Kenya, Egypt and Morocco. This is why at African Utility Week, we will announce the results of our survey to develop tailored solutions for African grid challenges, to enable African utilities to connect and integrate more renewables into the grid.”

African Utility Week and Clean Power Africa are organised

by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK.

Source: Press Release

PAGE 7

NEWS All that’s happening in South Africa

South Africa marks Freedom Day

Entering into its third decade of freedom on 27th April, the day marks 21 years since all races voted in its first free and fair elections that included the country’s black majority in 1994, ushering in a new democratic dispensation.

President Jacob Zuma reinstated his government to the vision of building a united, non-racial, non-sexist, democratic and prosperous South Africa.

“We recommit ourselves as government to ensure that all policies and plans that we develop and implement, build a better future for our children and the youth,” he said at the official Freedom Day celebrations on the lawns of the Union Buildings in Pretoria.

Celebrations for Freedom Day took place countrywide, with the main event taking place at the Union Buildings, in the capital of Pretoria. This year the day was celebrated under the theme: ‘Celebrating the third decade of our freedom through accelerating radical economic transformation.’

It reflected on the progress South Africa has both made and seen in moving the country forward. Looking back

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over the last two decades, the government has worked hard to construct a society that serves all its people by trying to address the economic, social and cultural challenges created under apartheid.

Great progress has been made in lifting South Africans out of poverty providing access to water, education, healthcare, housing and many other basic needs which they did not have before 1994.

The Freedom Day celebrations helped to provide an opportunity for South Africans to reflect on the road to democracy and deepen the understanding of how democracy was achieved. It also allows them time to appreciate and acknowledge the contribution made by unsung heroes and heroines in their respectful communities and further, help to reflect on the contribution of other African countries and the rest of the world in liberating South Africa.

This year’s Freedom Day celebrations also marks the 60th Anniversary of the adoption of the Freedom Charter, the historic road-map to the country’s struggle for freedom and ultimately the achievement of democracy.

NEWS

Eskom’s Sere wind farm now fully commercially operational Eskom’s Sere wind farm now fully commercially operational Monday, 20 April 2015: Eskom is pleased to announce that its Sere Wind Farm near Vredendal in the Western Cape has achieved its full commercial operational capacity of a 100 MW on 31 March 2015.

The achievement of this milestone is in line with the commitments made by Eskom in terms of both time and cost and the result of successful interaction between Eskom and our contractors.

Mr Brian Molefe, Eskom’s Acting Chief Executive said, “Sere is Eskom’s first large-scale renewable energy project, and forms part of our commitment to renewable energy and reducing our carbon footprint. The Sere plant adds 100MW to the national power grid and contributes to saving nearly 6-million tons of greenhouse gas emissions over its 20 years expected operating life, with average annual energy production of about 298 000 MWh, enough to supply about 124 000 standard homes.”

“The unwavering commitment of the project team to drive the target dates set out and address issues timeously is something we can indeed be proud of as an organisation,” adds Mr Molefe.

All 46 wind turbines have been erected and energised, and the construction of the new Skaapvlei substation and a 44-kilometer 132kV distribution line has been completed. The first wind turbine at the farm was erected in December 2013. The project took the first step towards the goal of synchronising the wind turbines to the grid when the first string of 7 turbines were energised on 6 October; 2014. Although Sere had been completely energised and feeding power to the grid since 30 December 2014, the first quarter of 2015 was used to ensure that the milestone of commercial operation is achieved.

The Sere Wind Farm is Eskom’s first utility scale renewable energy project. “The project is one of the largest wind energy projects in South Africa and is important in showing Eskom’s commitment to the growing role that renewable power will play in the future,” Mr Molefe said.

Since the energising of the first wind turbine in October 2014, the Sere Wind Farm has contributed over 90 GWhrs of energy to the national power grid. Through

this facility, Eskom has shown that it can construct a world class wind energy facility comparable to any in the world with regard to cost, time, and quality and with a safety record in line with Eskom’s zero harm policy.

There were also no environmental legal contraventions recorded on the project and given the extent of the site and the amount of bush clearing done, this is an outstanding achievement.

The wind farm is not the only green energy initiative at Eskom, which is also developing a 100 MW concentrating solar plant (CSP) project near Upington in the Northern Cape, a project that will save about 450 000 tons of carbon dioxide emissions over its lifetime. The World Bank, African Development Bank, Clean Technology Fund, and Agence Française de Développement helped fund the project.

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NEWS All that’s happening in South Africa

Department of Energy announces preferred bidders for renewable energy programme – an additional 1,121 MW to the grid The Renewable Energy IPP Programme is a flagship programme of the Department through which a total of 4,322MW have been procured in less than four years.

I am pleased to confirm that on 11th April 2015, the DoE issued confirmation letters to thirteen (13) Preferred Bidders for the fourth bid submission phase of the REIPP Programme.

These projects, once completed, will contribute an additional 1,121MWs to the national grid.

This brings a total of 79 projects approved by the Department of Energy with a capacity of 5,243MW across all Renewable Energy Bid Windows . This represents a massive investment of R168 billion in economic infrastructure in our country, which will contribute to economic growth and job creation, in addition to the contribution it makes to security of electricity supply.

The 13 preferred bidders for Window 4 are as follows:

Biomass Ngodwana Energy Project – 25MW

On - shore wind Roggeveld Wind Farm – 140MW The Karusa Wind Farm – 140MW The Nxuba Wind Farm - 139MW Golden Valley Wind – 117MW Oyster Bay Wind Farm – 140MW

Solar PV: Sirius Solar PV Project One – 75MW Droogfontein 2 Solar – 75MW Dyason’s Klip 1 – 75MW Dyason’s Klip 2 – 75 MW Konkoonsies II Solar Facility – 75MW Aggeneys Solar Project – 40MW

PAGE 10

Hydro: Kruisvallei Hydro - 5MW We expect financial close for Bid Window 4 to be in Quarter 4 of this year, and commissioning of these projects from November 2016.

In view of the current electricity supply challenges experienced in our country, and in the context of broader coordination efforts of government to address these challenges, the Department has been structuring a comprehensive response with regard to the IPP Programme.

I have instructed my Department and the IPP Office to accelerate and expand the Renewable Energy IPP Procurement Programme through: Firstly, utilising the enabling provisions in the current RFP to allocate additional MWs from Bid Window 4 procurement process. This bid window has been extremely successful with regards to price and economic development proposals. I expect to receive a firm report in this regard by month end, and an announcement will be following soon thereafter, however not later than end May 2015.

Secondly, we will be issuing a Request for Further Proposals for an expedited procurement process of 1,800MW from all technologies. I have directed the IPP Office to follow a diligent, but shortened and simplified, competitive procurement process. This bidding process would be open to inter alia all unsuccessful Bidders from all previous Bid Windows (BWs 1 to 4) which are ready for re-submission. The Request for Further Proposal for this expedited procurement process will be issued by no later than early June 2015 and the IPP Office will release more details on the proposed process for this in due course.

NEWS Furthermore, I have requested the team to redesign the current RFP for the Fifth Bid Submission phase to be ready for release in the second quarter of 2016. Key aspects of the RFP that will be redesigned include the definition of local community, the mechanisms to ensure early, efficient and equitable benefits to the communities and the local content / industrialisation regime, as well as to take into account the constrained distribution and transmission systems that we dealing with.

I wish to announce that I also intend to submit to NERSA, for their concurrence, a new determination for an additional 6,300MW for the Renewable Energy IPP Procurement Programme. This is done in accordance with the IRP 2010 - 2030 and to maintain the momentum of the programme, especially for future Bid Submission phases.

In conclusion, I wish to extend the appreciation of government to all South Africans who are doing their part to alleviate the electricity shortages we face currently. We must re-iterate that the challenge affects all of us equally and we do possess the resolve and ability to collectively address this matter. We also wish to extend our gratitude to all stakeholders, in the public sector, private sector, in labour and our communities at large for the ongoing engagement and interaction. Please be assured that the various proposals we have received from you and the many interactions are indeed appreciated and assist to shape of collective response to this national challenge

.

Source: media statement - Ms Tina Joemat-Pettersson, Minister of Energy

PAGE 11

Entrepreneur

Making a house, a home Looking back over previous issues of IndustrySA, Pam Golding is certainly an entrepreneur that stands out as one of the finest we have featured. A true entrepreneur, Mrs Golding maintains a strong and inspiring reputation for property development, but also the importance of passion and integrity when buying a house.

Our entrepreneur this month has had a glittering career in the property industry and really sets the bar high for lifetime achievements in South Africa.

Mrs Pam Golding is the founder and now Life President of the internationally recognised and locally celebrated Pam Golding Property Group. Not only is Mrs Golding an inspiration and role model for women, she is also widely regarded as one of the world’s leading businesswomen and entrepreneurs.

Founded in 1976, the business had a challenging beginning. During tough economic times, with virtually no capital, no leads, no infrastructure and just one sales assistant, the business flourished thanks to the drive and talents of Mrs Golding including; an unerring talent for successfully matching buyers and sellers, a graceful style, networking skills and a passion for property.

Headquartered from Bishopscourt, Cape Town, the company now has a network of more than 300 offices in Africa as well as international offices in the UK, Germany, Mauritius, Seychelles and France. The Pam Golding group forms part of a strategic alliance with one of the world’s largest property groups, Savills PLC, gaining access to its prestigious network of over 500 offices worldwide.

In the beginning Mrs Golding was against using her own name as the title of the business but the personal branding has turned out to be a great success. Thanks to the hard work, vision and entrepreneurial spirit of Mrs Golding and her team, the business is today a multi-million Rand organisation

PAGE 12

with around 300 branches, 186 franchises and over 3,000 staff.

Pam Golding Properties was the first South African real estate business to achieve sales turnover figures for a single year of around Rand 18 billion. The company is now so vast; people all over South Africa have bought their homes from a Pam Golding representative.

The company was born out of an idea which sprung to mind after Mrs Golding, her husband, Cecil and their two young children bought their first home. Mrs Golding enjoyed being involved in the industry and had a conversation with someone discussing networking and pointing people with property requirements in his direction. In the end she looked after their needs herself and the idea for the business came to life.

The initial concern was the difficulty of raising capital but after overcoming this, the company saw steady growth before Mrs Golding identified the top end of the market was the area where maximum growth could be found. She has based her business strategy on a remarkable ability to find exclusive properties for people who sometimes didn’t even know what they wanted themselves.

One of the high points for Mrs Golding and the company was finding a property for the inspirational Nelson Mandela and his wife Graca Machel, this was a home that the former President never thought he would buy, but with help from Mrs Golding he did just that. Mrs Golding has said that she feels a sense of achievement after giving people good advice, and a

Pam Golding

responsibility to do so.

Today, Mrs Golding’s son, Andrew, is the chief executive of the company and she plays a role of ambassadorial nature as a global networker and facilitator, encompassing

both the promotion of South Africa and its diversity of investment opportunities to the world at large – an inspiration to any budding entrepreneur or any business person, in any part of the world

.

Over the years Mrs Golding has been honoured for her leadership skills and personal achievements with an impressive array of national and international awards: • Business Against Crime WC – Lifetime Service Award • Ernst & Young World Entrepreneur Wards - Lifetime Achievement Award (2009) • Honorary Degree of Doctor of Philosophy (Ph.D.) in Business Administration from the Walter Sisulu University (2009) • Honorary Life Member of the Institute of Estate Agents of South Africa (2008) • Provincial Honours Award in the Category: Officer - for her contribution to the economic development of the Western Cape and in acknowledged of her involvement in empowering women in business. (2007) • Cape Times/KPMG Business Personality of the Year (2003) • Die Burger & Kaapstad Sakekamer Sakeleier van die Jaar – (Translated as: Business Leader of the Afrikaans Chamber of Commerce) – the first and only woman to have received this prestigious award (2001) • The Star Group – One of the Leading 50 Women Entrepreneurs of the World (1998) • BWA Executive Women’s Club Businesswoman of the Year (1996) • Previously a member of The Women’s Leadership Board at the John F Kennedy School of Government at Harvard University • International Women’s Forum • Desmond Tutu Peace Trust Board Member • University of Pretoria Business Clinic Pioneer Entrepreneur

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Innovation

South Africa’s proudest invention?

This month, IndustrySA looks back at one of the most noteworthy and successful innovations – The LightieTM. When we last spoke with creator, Michael Suttner, he explained how he came up with one of Africa’s most promising innovations to date.

Many hands make light work; we’ve all heard the old proverb. But in the case of this South African innovation, it’s just two hands, those of Michael Suttner, a young social entrepreneur whose idea is rapidly becoming one of the most talked about inventions to come out of South Africa.

Suttner is the man behind The Lightie™, a small solar powered light bulb, about the size and shape of a test tube, which fits inside a regular PET/soda drinks bottle. This innovation could provide light to millions of people who live without electricity and have to suffer using expensive and dangerous paraffin lanterns.

Suttner tells IndustrySA that as many as two million people die each year using paraffin lanterns or candles, on average people spend 25% of their income on this ‘dirty fuel’ and nearly 200 million tonnes of CO² are released into the atmosphere annually as a result of this fuel for lighting.

Previous attempts to tackle this problem on a mass scale have all but failed and one of the main hurdles was the cost of distributing functional products to the vast range of people in need. But Suttner has almost cleared this hurdle by making his product cheap, small and flexible by potentially leveraging some of the biggest existing distribution networks in Africa – for example those of Coca-Cola.

“I looked at the biggest distributors in Africa, Coca-Cola, MTN, Unilever, the corporates that own the distribution channels,” explains Suttner. “Their market penetration is very deep. I looked at CocaCola and was very impressed with how they distribute their products and how much reach they have in Africa where infrastructure is

PAGE 14

pretty much non-existent. I thought if I could somehow leverage their distribution then I could potentially get light to millions of people.

“I did some research on who had partnered up with Coca-Cola before, and it quickly became clear that Coca-Cola were in the market to sell Coke, not solar lights for example. If I wanted to leverage their distribution channels, I would have to come up with something that got them excited.”

THE LIGHTIE™ Using flexible solar technology, a small powerful lithium battery and efficient LED technology, all mounted in a test tube like unit, The Lightie™ can output up to 12 times more light than that of a traditional paraffin lantern.

After researching the solar market in Africa for three years, Suttner explains that his inspiration came one day on his way to the gym.

“There had been a lot of talk about lighting up Africa and moving from paraffin to solar but nothing was ever done on a mass scale so I set myself a challenge. The technology was there and the price was right because of mass production, so it essentially boiled down to getting the technology to the end user. The biggest challenge was distribution. If I could find the right distribution partner and the right product, we could have something that could reach the masses and essentially light up Africa and the rest of the impoverished world.

“One day on my way to gym after realising I had left my water bottle at home, I decided to stop off at my local sport shop to buy

The lightie™

a new one. That was when I came across the Bobble water bottle, which had an interesting looking filter screwed into the top of it. This was when I had my eureka moment. I realised with all the technology that I had researched over the years, the battery technology, the flexible solar and LED technology; I realised that this could all fit together in a test tube shaped unit which could screw into a soda bottle/coke bottle borrowing the bottles form as the structure.

“I went home and put everything on paper, I got the idea provisionally patented worldwide and I trademarked the name ‘The Lightie™’. My mind went to overdrive as I realised that this could be the solution that Africa has been waiting for. Not only could it give out a lot of light but it could reduce the cost dramatically.

“The units use a flexible solar panel which is around half the price of a conventional mono or polycrystalline solar panel because it gets printed in low cost, roll to roll process. Flexible solar technology has come a long way in the last few years catching up and having similar efficiency to some of the best conventional solar technology on the market. By using a coke/soda bottle, I reduced the cost further as there was no need to create a conventional structure for the lantern.

The Lightie™ essentially is a solar powered light bulb and the Soda bottle is the fixture.

“I realised that Coca-Cola may be interested in the marketing side of things as they see themselves as the enablers of happiness and through this whole process the idea for The Lightie™ was born.”

‘ALWAYS THE TINKERER’ After School Suttner went on to study mechanical

engineering for a short while but before that he was always interested in how things worked. He describes himself as a ‘tinkerer’, something that would be a source of much frustration for his family.

“I’ve always been a tinkerer, from a young age I was always taking things apart and making things. I would spend all my free time disassembling and building things in the house. My mother used to lock me out of the kitchen as I wanted to take apart the dishwasher but I would never be able to put it back together. Eventually she started buying me electronic kits and I spent most of my childhood playing with these kinds of things.”

His interest in solar technology developed at the end of high school when Suttner created an alarm system for campers in a science competition where a solar panel sits atop a tent or vehicle and powers a perimeter alarm.

In 2010, Suttner was working in Europe, on a yacht in the Mediterranean, where he witnessed how well solar technology was being implemented. This made him think, could solar tech be a viable option for South Africa?

“Over the years I had read a lot about the advances of European solar technology in magazines and newspaper clippings in South Africa but we’ve always been years behind Europe and what was new here was five years old in Europe.

“When I was working on the yachts I noticed the hi-tech solar equipment being used. I thought if I could bring it back to SA it might be a good business opportunity. However, when I came back every Tom,

PAGE 15

Innovation Dick and Harry was doing it and the market was flooded.

“I subsequently shifted my focus to the rest of Africa and realised it was a totally different ball game. Conventional solar wasn’t that useful in Africa but Micro Solar (or Pico Solar) products were. This refers to very small, highly efficient solar powered products. This was my inspiration,” he says. “With 600 million being forced to live without light and having to spend $38 billion dollars on ‘dirty lighting’ annually and with only 2% market penetration in the solar sector, it was a no brainer.”

The speedy advances in cell phone technology over the past decade have all contributed to the development of effective batteries and other technology which gave Suttner a lot of scope when creating The Lightie™.

“The technology was right thanks to the development of cell phone technology, the price was right because of the mass production of cell phone technology and I couldn’t understand why there were still 600 million people in Africa still forced to live in darkness every day when the sun sets. It just didn’t make sense.

“In my opinion, this small test tube shaped light

PAGE 16

bulb is the international answer to the world’s lighting problems,” he says.

THE FUTURE? While The Lightie™ is still a conceptual product, Suttner has proven that the idea can work – very effectively. The idea has already been recognised by numerous national and international organisations as an inspirational innovation.

At the 2013 ABSA/Design Indaba DRD Contest, The Lightie™ was chosen as the winner for its ‘ingenious innovation and distribution strategy’. At the 2013 CLIPDC Lions Den Challenge, The Lightie™ won first prize of R50,000 for being the most promising idea which showed the biggest potential social impact. At the 2013 TIA/SASOL Step-Up Innovation Competition, The Lightie™ took first prize in the Green Environment category. At the 2013 FNB Ideas Can Help Competition, The Lightie™ won the grand prize of R500,000 seed capital and a one year incubation/ commercialisation agreement through Vumela and Edge growth and at the The 2013 GAP Green Awards, The Lightie™ won first prize of R300,000 including enrolment into the Maxum Business incubator and Climate Innovation Centre for its work in the area of clean tech solution such as renewable energy, water and sanitation and sustainable mobility.

Suttner says that he hopes to take his product to the

The lightie™ masses and go on to solve other prominent everyday problems. He says that The Lightie™ could eventually be sold alongside Coca-Cola and paraffin and could be used in various industries including mining.

“Currently, it’s a crude concept but I wanted to get all the electronics in and make sure it works. Does it charge? Yes. Does it give you light? Yes. Can it give you light for up to 40 hours? Yes. “We are now in the next phase of development. We are talking to manufacturers and getting designers to give us an idea of how the final product could look and work and how we can get it to the masses.

“We are also in the process of creating a mother brand under which The Lightie™, and other products we produce, will fall. I see myself in this industry for the foreseeable future. I would like to form a company that will solve everyday problems and not just provide variations on what is already available. I would like to solve problems on a mass scale, not just in pockets around the world.

“I see The Lightie™ sitting on the shelves next to CocaCola, next to paraffin across the world where those two products are easily accessible to the masses.

“Of course, there will be many uses for the product. It could be used in the mining industry, potentially attached to mining hardhats. Miners could have one down in the mine, one charging above ground and then one to take home for

use with their families providing light, saving money and improving their health dramatically” he says.

To ensure the smooth transition from concept to final product, Suttner has assembled a team to assist with all areas of business from finance to electronics.

“I’m only 27 and to be honest, my business acumen isn’t up to scratch with a project of this calibre,” he says. “So I have put together a small team of respected businessmen and they are helping me and I’ve made a lot of connections.

I have a business coach, financial advisors, lawyers, an industrial designer and a specialist engineering company in Holland who I’m looking to outsource the electronics through. They have developed a special patented chip which will make my unit up to 200% more efficient than most of my competitors. It will be able to charge under very low lighting levels and even in dark cloudy and rainy conditions.”

So, The Lightie™ is safe, sustainable, cheap and easy to maintain. It is efficient and can be used in a range of different environments. It has been recognised for its ingenious design and distribution strategy and its creator is focussed on making it a success. With all of this in mind, it is likely that the next few years will be extremely busy for Michael Suttner and The Lightie™ and, hopefully, this fantastic idea can being enlightenment to people around Africa and around the world

.

“My mind went into overdrive as I realised that this could be the solution that Africa has been waiting for”

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Lifestyle SA

Capturing the beauty of South Africa Editorial: Harriet Pattison

One of the finest photographers to capture the true essence of South African wildlife, this month we talk to Hannes Lochner, who we last featured in February 2014. About to embark on a new and inspiring project out in the Delta, he explains why, despite the challenging conditions, it remains such an exciting profession…

IndustrySA last featured Hannes Lochner, the critically acclaimed wildlife photographer, back in February 2014 and in this month’s issue, we are lucky enough to catch Hannes before he ventures back out into the South African bush for his next project.

G r o w i ng u p n ext to a nature re se rv e in Cape Tow n , L o chner ad mits that he was always off ex pl or i n g and getting l ost in the be autiful s u r r ou n dings o f h is ho me . Be fore making a n a m e f o r hims elf in the world of photog raphy, L o c h n e r d ecid ed to trav e l and on his re turn, h e s t a r t e d u p his o w n rafting company which h e l a t e r s o ld to the b igg e st company in the i n d u s t r y.

Ph ot ograp hy and nature was cle arly in h i s b l oo d f ro m a very young ag e and while a p a r t i c ularly challen ging industry to be s u c c e ss f ul in, Lo chner has cle arly prov e d h i m se l f f ro m his p revious proje cts including ,

PAGE 18

‘C ol ours of S out h e rn Afri c a ,’ ‘T h e Col ours of t h e Ka l a h a ri ’ a n d ‘T h e D a rk S i de of t h e Ka l a h a ri ’. T h e l a t t e r c e n t e rs on t h e h a rds h i p and c h a l l e n g e s of a youn g fe m a l e l e opa rd rais i n g h e r c ubs t h roug h t h e h a rs h c on di t i on s and e n v i ron m e n t of t h e A fri c a n bus h . H e w a s luc k y e n oug h t o s h oot m os t of t h i s proje c t at n i g h t , a pri v i l e g e t h a t h a s n e v e r be e n g ra n t e d be fore a n d pe rh a ps a s a re s ul t , i t w a s re c og n i s e d on a n i n t e rn a t i on a l s c a l e by t h e BB C Ve ol i a Wi l dl i fe Ph ot og ra ph e r of t h e Ye a r for i t s un i que c on t e n t a n d s h e e r t e c h n i c a l ap proa c h .

Wi t h s uc h a n i m pre s s i v e re put a t i on be h i n d him , w e a s k H a n n e s a bout h i s l a t e s t proje c t wh i c h h e h a s jus t v e n t ure d i n t o: “Aft e r fi v e yea rs i n t h e Ka l a h a ri D e s e rt , I w a n t e d t o capt ure a n i m a l s w i t h i n a w a t e r e n v i ron m e n t and m ore di v e rs i t y. H e re t h e bi rdl i fe a re am a z i n g a s w e l l a s s o m a n y ot h e r s pe c i e s l i k e wi l d h og , e l e ph a n t s a n d h i ppos . “ S o w e w a n t t o c a pt ure t h e e s s e n c e of w a t e r

Hannes Lochner

© Hannes Lochner w i t h in a d es ert en v ironme nt and de cide d on t h e O kavango Delta and are as borde ring the D e l ta. We w ill b e base d he re for two ye ars and w i l l live p erman en tly in a te nt in the bush. “ We h ave j u s t s tarte d and we are g e tting v e r y w et! There is lots of rain and the mozzie s a r e e ating u s alive. Sig hting s are scarce b e c a u s e o f the amount of wate r and so the a n i m als are s p read out and don’t re ally v e nture t o waterh o les an d riv e rs,” he adds.

I t is certainly the unique ne ss of the se

“I get to see these amazing animal behaviours, because I’m in the bush constantly but patience and time is what you need for images like this”

proje c t s w h i c h m a k e s L oc h n e r’s w ork a n d ph ot og ra ph y s o a ppe a l i n g – for m a n y t ouri s t s v i s i t i n g t h e s e l oc a t i on s , m uc h of w h a t t h e y w i l l s e e i s s o de pe n de n t on l uc k a n d t h e t i m e of da y or s e a s on i n w h i c h t h e y v i s i t . L oc h n e r h ow e v e r, h a s t h e fort un e t o s t a y da y a n d n i g h t , c a pt uri n g t h e da i l y l i v e s t h e s e a n i m a l s l e a d, be fore put t i n g i t on t o pa pe r a n d s h a ri n g i t . “ I w oul d l i k e t o c a pt ure ph ot og ra ph y t h a t t e l l s s t ori e s a n d m os t of t h e s e i m a g e s a re i n a re a s w h e re t ouri s t s a re . I g e t t o s e e t h e s e a m a z i n g a n i m a l be h a v i ours , be c a us e I ’m i n t h e bus h c on s t a n t l y but pa t i e n c e a n d t i m e i s w h a t you n e e d for i m a g e s l i k e t h i s ,” h e e x pl a i n s .

S t a yi n g i n a t e n t for t w o ye a rs a t a t i m e w h e re t e m pe ra t ure s c a n re a c h i n e x c e s s of 4 0 de g re e s , pl um m e t t o a s l ow a s -1 0 de g re e s duri n g t h e w i n t e r m on t h s w i t h a pl e t h ora of i n s e c t s a n d m os qui t os i s c e rt a i n l y n ot e v e ryon e ’s c up of t e a but t h i s i s pe rh a ps t h e k e y t o a t rul y s uc c e s s ful a n d de di c a t e d ph ot og ra ph e r.

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Lifestyle SA

“ I l o v e livin g in the bush,” L ochne r te lls u s . “ B e l ieve it o r no t we fe e l safe r the re than i n c i t i e s. I w ill never li v e in a city and in the b u s h yo u really ‘ live’ . It’s roug h at time s, es pe c i a l ly in a ten t, b u t whe n you look back a t i t , i t ’s w o rth every m ome nt. It’s a journe y, a n a d v e n tu re, and w ith my partne r Noa, who d o e s a l l th e f ilmin g, w e hav e to ov e rcome l ot s of ob s tacles , d ealing with v e hicle issue s, b r e a k do w ns , gettin g s tuck, washing away, b u r n i n g in the s u n , eq uipme nt malfunctioning ; b u t l i k e I s aid , it’s an adv e nture . “ I h a v e learnt a lo t re g arding ne v e r to take c e r t a i n t hings f o r grante d, to appre ciate life m or e a n d I no w get u p e xcite d e v e ry day. It’s t r u l y a wo nd erf u l exp erie nce . My photog raphy h a s n ot really ch anged but you always want to b r i n g n e w and f res h id e as to the table and with t h i s e v e r changin g an d saturate d photog raphy m a r k e t , y o u h ave to s te p up and do some thing d i f f e r e n t .”

L i v i n g in an en viro n me nt such as this,

PAGE 20

where life is so determinedly different and in direct contrast to one spent working and l i v i n g w i t h i n c i t i e s o r s u b u r b a n s t r e e t s . To

“I have learnt a lot regarding never to take certain things for granted and to appreciate life more and I now get up excited every day”

Hannes Lochner

© Hannes Lochner have the privilege of waking up ‘excited every day’ in addition to the abundance of time and f r e e d o m i n w h i c h t o t h i n k a n d c o n s i d e r. O f course, the environment is challenging, harsh a n d u n f o r g i v i n g a t t i m e s – “ I t ’s h o t i n a t e n t 9 0 % o f t h e y e a r, I m e a n r e a l l y h o t , a v e r a g e above 40 degrees Celsius with the winters g e t t i n g a s c o l d a s - 1 0 d e g r e e s . Ve h i c l e s break, equipment presents problems, terrain is mostly 4x4 and we get punctures all the t i m e . S a n d , m u d , w a t e r, s u n , m o z z i e s , i n s e c t s , stings, bites, itches are all part of a daily routine, so there is never really a way to prepare for this, you must take what c o m e s a l o n g .”

From speaking with Hannes, it is abundantly clear he has an unequivocal and true passion for taking once in a lifetime photos to share with others who may never see something so beautiful or real in nature, even if it is on their very doorstep. “I hope I never get the ‘perfect’ shot!” jokes Hannes.

“If that happens, your drive and search will s l o w l y d i s a p p e a r. T h e r e a r e a l w a y s i m a g e s close to your heart, but the perfect picture must wait. “ I t ’s a h a r d l i f e , b u t v e r y r e w a r d i n g .

Moments me and Noa share with certain animals, close relationships, you get used to everything and when you make peace with y o u r l i f e s t y l e a n d n o t w o r r y a b o u t t o m o r r o w, i t j u s t g e t s b e t t e r,” h e e x p l a i n s .

Once Lochner completes his latest project in the Delta, he explains there is still so much to explore in Southern Africa.

“A f r i c a i s h u g e , I w a n t t o f i n i s h f i r s t i n m y back yard then I’ll travel. The diversity in Southern Africa is huge, so for now I’m in the D e l t a u n t i l 2 0 1 7 ,” L o c h n e r c o n c l u d e s

.

You can buy Lochner’s previous works and follow his progress here:

www.ha nnesloc hner.com PAGE 21

company profile

Trusted partner for risk solutions Editorial: Ajuanne Payne

With the largest dedicated team of professionals in the African continent and recognised as the partner of choice for market leaders in a range of industry sectors in South Africa – Marsh Risk Consulting is arguably the number one provider of risk assessment services in the Southern African region.

Speaking with Volker von Widdern, Managing Director of Marsh Risk Consulting, South Africa, IndustrySA catches up on developments in the company over the past year.

Risk assessment forms the backbone of the global insurance industry – accurately quantifying potential pitfalls for companies is key to not only getting insured, but getting the best, most cost effective insurance. Cost effectiveness is no longer based on the premium, but on wider definitions of the Total Cost of Risk. You cannot insure your assets without some element of risk assessment and as such, this area of the business is at the core of predicting any financial hurdles a company may have to overcome.

In our current times, customers have access to a wealth of information at their fingertips and are much more empowered when making spending decisions than previously. Essentially the definition of insurance hasn’t changed – you pay for an insurance policy that pays out if the organization suffers an insured loss; however the science behind risk mitigation has developed tenfold from the days when customers would set up a meeting with a broker prior to making an insurance purchase.

In this globally connected, internet age, the science of risk assessment has evolved to fully utilise new opportunities – be it the benefits of new technology to analyse data, or the connectivity of the global economy making it easier to quantify potential risks.

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Risk to a certain extent is, evidently, necessary and unavoidable in any company, be it mid-sized or large corporate, in order to promote growth and invest in progress. All risks are both a challenge and an opportunity – and it is Marsh Risk Consulting’s job to effectively assess the potential challenges in order to enable organizations to exploit the opportunities.

The South African insurance market accounts for nearly 80% of the African market as a whole and is playing a key role in the fast rate of socio-economic growth on the continent, with South Africa acting as a springboard for investments in the rest of the continent.

The country does hold a leading position in terms of risk financing and loss control programmes in the global risk management community – innovations and developments that definitely have their roots in the complexities of the market there.

As the hub of the African insurance market, South Africa is home to regional divisions of global leaders in the insurance and risk advisory industries. The most recognisable of these companies, and a household name, is Marsh – a leader in insurance broking and risk management worldwide, with local subsidiary, Marsh Africa heading up the company’s interests on the continent. This subsidiary is part of Marsh and

Marsh Risk Consulting

McLennan Companies – a group with almost 150 years of experience in the industry.

Defined by a deep corporate culture of specialization and collaboration, Marsh Africa is born of a company with a proven track record for excellence in handling all the ‘what ifs’ an organisation may come across.

Headquartered in Johannesburg, Marsh Africa has branches in Namibia, Botswana, Zambia, Malawi, Zimbabwe, Uganda and Nigeria, as well as affiliates in over 20 African countries.

The specialised division for Marsh Africa that handles its risk consultancy is Marsh Risk Consulting (MRC) which was part of a merger with Alexander Forbes Risk Services back in 2012 to create the largest risk consultancy on the African continent.

Expansion across Africa is an ongoing strategy for the company. Volker Von Widdern, Managing Director of MRC SA, explains: “Marsh is in the progress of finalising its footprint in Nigeria, which will position it as number one there. It continues to develop its footprint in North East Africa and in selected African countries, so that gives us a very strong footprint across Africa. Then we have a network of 20 plus associates and correspondents - so we are represented in over 30 countries around Africa.

“This is part of the ongoing strategy since Marsh’s

acquisition of Alexander Forbes - to ensure that we are represented in many African countries throughout the continent.”

In a region often seen as the last development frontier, with a higher likelihood of political, social and economic change, the risk landscape is difficult to manage at best and unpredictable at worst in the fast-growing economies that make up the African continent.

Pre-emptively, MRC, encompassed by Marsh Africa is taking the steps today that will ensure it is in the best position to serve large corporate clients in areas which have not, up until now, had an insurance sector as developed as South Africa and the rest of the globe.

It is what the company does best – anticipating events to ensure preparedness, and with Marsh on side in the years to come, the entities currently investing in Africa will ensure they have the capacity to get the job done.

BACK TO BASICS In order to help organizations to better identify and manage the potential risks they face, the core of MRC’s risk consultation can be broken down into two main themes – qualitative or operational risk on the one hand and quantitative or financial risk on the other.

Volker von Widdern explains in further detail: “The

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company profile

kinds of things that can burn, break, injure people, poison the environment etc. - those are addressed under hazard/operational risks.”

The company would write up a substantial report, encompassing all their findings and assessing the critical elements and main risk areas. Using this to correctly evaluate and price the risk, underwriters are able to ensure they propose the right solutions to their clients.

“The critical outputs of the survey report are what we call the estimated maximum loss (EML) and the maximum possible loss (MPL) scenarios,” says von Widdern. “EML is a large loss scenario but where protective systems work - so the fire prevention works, or you can minimise the impact of plant failure. The MPL is where your prevention systems don’t work - maybe a plane hits your roof and wipes out your sprinkler system, for example.”

Once MRC has this comprehensive report and it is made available to its insurance market brokers, it can raise recommendations for the clients on how best to assist them to improve the risk. MRC draws on its expertise and the knowledge gained through a close working partnership with its client to provide effective risk management solutions.

“We work right from the bottom up to help with developing standards, training and implementation. We

PAGE 24

have a very strong audit programme, do benchmarking and validations and effectively become the rent-arisk manager providing the right resource as required across the whole qualitative operational risk area,” von Widdern explains.

PEOPLE POWER MRC in South Africa provides its clients with strategic advice and innovative solutions across a wide range of insurable and uninsurable risks in order to improve resiliency. The company offers services to its largescale clients in the mining and financial services sectors, clients in the middle market sector, ranging from manufacturers, automotive companies, hospitality and catering, distribution, food, retail – the list goes on.

In this age of increasing technological advancements, MRC has long recognised the importance of maintaining face-to-face connections in order to truly understand the needs of a client on a case-by-case basis. Part of the reason for MRC’s large dedicated team in SA is the signficant benefits of having multiskilled staff members with expertise in the different fields the company works in.

“We need technical engineering people to understand how mechanical things work and understand when they break down how long they will

Marsh Risk Consulting

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company profile

TRANSITION RISK SOLUTIONS PTY LTD

(Underwriting Managers)

FSP No : 40534

Transition Risk Solutions was founded in 2009 by experienced short term insurance campaigners Winston van Zyl and Tony Rose.

Winston and Tony combined have spent more than 50 years in the reinsurance, insurance, retail broking industry, holding senior positions at the various corporation’s that they have worked for.

Transition has secured panel positions at many of its targeted accounts. Growth followed strong relationships with major national, international and independent brokers of which Marsh is one of their leading suppliers. At the outset Transition adopted a strategy of writing follow lines on the larger Assets All Risks type policies depending on risk segmentation and quality Transition specialises in corporate assets risks for large corporate client’s i.e. Telkom, Eskom, Impala etc with operations in South Africa and beyond. Our segments include Mining, Industrial ,Energy , Manufacturing and all other property portfolios says Winston. The UMA offers covers such as Material Damage, Business Interruption and Machinery Breakdown as well as all assets associated with their clients activities.

Transition’s partnership with New National (South Africa’s oldest empowered insurer) has been in existence for the past three years.

New National has just exceeded the R1billion mark in premium income and boasts impressive empowerment credentials. Due to New National being involved in other classes of business (motor, liability, engineering, marine etc.), Transition is able to offer a seamless product to its clients.

The partnership is also a welcome step towards transformation in an industry where change happens slowly. “We share the common vision of meaningful transformation in the corporate insurance space” says Rose.

New National | One of South Africa’s Largest Empowered Short Term Insurers | A rated - GCR | FSP 2603 Address: 11 Boundary Road, Isle of Houghton, 1st Floor, No 2 Harrow Court, Parktown, Johannesburg Directors: Winston van Zyl (cell no: 0823383960) and Tony Rose (cell no: 0834538673) Ownership: Transition is owned by Winston van Zyl and Tony Rose Tel: (011) 4846802 | Fax: (011) 4849385 | E-Mail: Winston@transitionrisk.co.za and tony@transitionrisk.co.za

be down for,” explains von Widdern.

“Then we need people on the fire, health and safety standard side. We recruit people and develop them.

Our development comes from the survey routines we have established over many years; the audit procedures, the technical standards and benchmarking, and people learn these and learn what best practice is.

“We have chartered accountants working for us.

They are offering the highest level of insurance consulting to the captive insurance companies that we service here. These are people who may have been junior accountants through the chartered accountant training routes at auditing firms and who have looked for jobs in commerce. We try and recruit them and demonstrate that there are good opportunities for career growth as both accountants and consultants, in an area of specialisation like insurance.

“The same happens with asset valuations. We would recruit an asset valuer and they would like working in a large organisation where the client base is highly diverse and they can gain diverse experience,” von Widdern explains.

“We want to be the leading risk advisor, reducing the cost of risk both qualitatively and quantitatively in

PAGE 26

respect of cash flow and exposure. What that means is that by engaging with clients we want it to be recognised that we add value by reducing risks and that improves business performance.

“We think that by demonstrating to companies that you can use risk management as a strong lever towards operational improvement, it will become less of a grudge purchase and more of a gain sharing, success building process,” says von Widdern.

MRC has experienced growth across the whole business over the past year, in both revenues and physical size. When we spoke with von Widdern in 2014, his team numbered around 110 people, but has since grown to 140 associates spanning financial risk, fraud, forensics, modelling, risk finance optimisation and all occupational risk areas.

“As far as Marsh Risk Consulting is concerned we had a very good organic growth year in 2014 - well above inflation, well above 10%. The team also grew by more than inflation and our role in terms of both financial risk modelling and operational risk continues to grow,” von Widdern explains.

“Overall there are very much higher levels of competence in all of the practices that we have at the

Marsh Risk Consulting business.”

The insurance and risk management sector is not one typically known for a large headcount; however Marsh understands the importance of being able to boast an industry leading team with unrivalled expertise spanning all the industries it services. The company is continuously adapting to stay abreast and be prepared for all the issues surrounding accurate and comprehensive risk consulting in the region – and one very important part of this is having the right people for the job.

CHANGES IN THE INDUSTRY

brings with it.

“The industry I think is going to continue this path of being more and more holistic, where you’ve got to bring together different entities,” von Widdern explains. “The starting point is very much compliance and regulatory orientated, in an operational sense as well as from a statutory risk product point of view.

“You have to ask, what are the organisation’s goals and how do we make sure that we have the highest relationship in the risk management space? Do we understand the full consequences of potential exposures?

How do we protect the organisations early or innovate and make the organisation’s systems even better? That element of linking all the dots, I think, continues to grow.”

One element of ‘linking all the dots’, and an aspect of MRC’s offering that we looked at in our previous feature in 2014, is supply chain risk. The company is unique in this offering; a further example of its ability to think of everything and anticipate the needs of its clients.

Interconnectedness is one of the prevailing factors changing the global insurance and risk market – as seen in the financial crisis in 2008 and the cascading socioeconomic consequences that were felt worldwide. Along with this increasing interconnectedness globally, a greater understanding for the connections between risk factors is developing.

A positive change as a result of this is the increasing 2788 Constantia_Uma Directory advert_9-4-2015.pdf SUPPLY 1 2015/04/14 AM CHAIN10:13 RISK need for collaboration and mutually beneficial Von Widdern explains that as the only company to partnerships in order to better understand this new age of offer supply chain assessment in the region, they are communication and the changes to the risk landscape it

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PAGE 27

company profile ahead of the competition in this area.

“In the field of supply chain risk assessment, there is difficulty in achieving adequate insurance coverage and our unique analysis substantially improves the coverage terms for our clients.

“We are the only risk consultants in South Africa’s insurance industry who do supply chain risk assessment. It’s unlikely that you can get a risk solution from anyone else other than Marsh where we will motivate a more pragmatic risk orientated outcome, in partnership with the insurers,” he says.

MRC provides comprehensive solutions to cover all aspects of assessing, understanding and managing the potential risks to supply chain that can be farreaching. Von Widdern defines this type of risk as: “any disruption to the supply chain where the underlying assets or business interruption cover for the company’s own assets is not the primary risk exposure consideration.”

“Instead of just accepting that supply chain is not insured, more and more effort is going into mapping and understanding elements of the supply chain that are priority items to the corporate and finding ways of

partially insuring or better insuring the supply chain.

“When you can’t insure it, it’s very important to understand the knock-on effect of the underperformance or the absences of your supply chain performance and understand how your resilience or your recovery plans can work there. So, that level of integration is moving ahead, but I would say it’s still early stages,” explains von Widdern.

CHANGES IN THE MARKET An ongoing and continually developing factor in the risk management sector is the continued advancements in technology that are contributing to the more interconnected world economy in a wider sense and, specifically in risk management, enabling companies to get a clearer, more detailed grasp on what factors will potentially effect day-to-day business. Underpinning the practice of risk assessment is data – the ability to accurately collect it and analyse it.

“I think the main emphasis moving forward is going to be streamlining the collection of data applicable to the insured risk; the asset basis of clients, and/or insured environments,” von Widdern explains.

Hollard & Marsh partner to deliver effective and individualised commercial and corporate insurance in Africa “Hollard Insurance is proud to partner with Marsh, South Africa’s largest broker, whose priority is to deliver innovative insurance protection which accurately fills the specific needs of their clients – both in South Africa and the African continent. Our shared vision includes fast and efficient claims settlement, innovative risk management, minimisation of client stress, coupled with expert knowledge of risk and legal requirements in our mutual client’s country of operation which can differ significantly and impact on the effectiveness of insurance protection.” says Andre van der Merwe, head of Corporate Property at Hollard Broker Markets, a division of Hollard Insurance, one of South Africa’s top three insurers who are specialists in all forms of commercial and personal lines insurance.

Hollard Insurance is an innovator and trend setter in South Africa’s insurance industry with a turnover exceeding R12.5 billion and assets in excess of R23.6 billion. Since 1980 Hollard has been forming solid win-win partnerships which benefit clients and has introduced many firsts in its leadership role in all forms of insurance as well as creative approach to risk management.

Van der Merwe elaborates “The financial threats that businesses face in this century come from many directions such as: advances in cyber technology, political instability, internal and external fraud and changing weather patterns. Marsh’s demands for their clients is high and Hollard’s specialist teams in all categories of insurance are equipped to deliver exceptional and individualised insurance throughout Africa.

“Sharing priorities, vision and high levels of expertise is essential in any partnership in order to deliver accurate levels of commercial and corporate insurance.” Here are the main priorities Hollard shares with Marsh: • • • • • •

We have specialist teams who work together to individualise protection We are continually innovating products and services to meet changing client needs We deliver accurate insurance and risk management backup Legitimate claims are settled quickly and efficiently to minimise client stress Hollard has the highest possible financial capacity for paying claims Marsh teams are approachable and experienced and work in synch with our different Centres of Excellence which offer all categories of commercial insurance • Hollard has offices and local partnerships throughout Africa to serve Marsh clients

More information about Hollard’s culture, commitment and products is available on www.hollardbrokers.co.za.

PAGE 28

Marsh Risk Consulting

jun 14 PAGE 29

company profile “That will become more and more technology driven and seen to be generic. The focus will be more on the interpretation of that data and making sure that the appropriate risk management and/or cover is applied to the data when it’s interpreted.

“For example, with a client in 100 or so locations, it’s very important to have an accurate understanding of that, and then the issue is, ‘what is the next step?’

“In history, a simple addition of all the values of those locations would have been done to get your number, but perhaps these days it won’t be a simple addition, it will be some other approach. The interpretation of the data once it has been collected will be the real direction going forward.”

Marsh has been busy applying advancements in technology and process to all areas of its business – and one area they are doing this in is in the local mining industry.

The mining sector has always been one of the cornerstones of the South African economy; according to the Chamber of Mines in South Africa, in 2013 the sector accounted for 8.3% GDP, equivalent to R279.7 billion.

Globally, Marsh is the world’s leading provider of

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risk management and insurance services to the mining industry and MRC in South Africa is no different.

With 17% of the global mining budget being spent in Africa, the company provide their clients with a service that takes into account local expertise, while also having the added benefit of being able to access all major global markets also.

MRC has spent its time over the past year further cementing its hold in the South African mining industry.

“We’ve moved quite strongly into the mining sector.

We’ve always been a strong participant there, but we’ve developed new ways of calibrating and assessing risks across many mining portfolios - so that’s been a very good milestone that we’re about to launch in the Q3 of this year.”

Another area in which MRC has a lot of influence is within the developing renewable energy sector in South Africa. The renewables sector globally has seen a huge leap in investments and opportunities in the past five years and when it comes to seeing this trend reflected locally, South Africa as a nation has considerable, unrealised potential in the areas of wind and solar energy.

Marsh Risk Consulting

Managing Director | Volker von Widdern Infiniti Print Ad 88 x 125.pdf As a result of aligning its renewable energy policy with its broader climate and development policies in 2009, South Africa has helped secure the confidence of investors in the years since and has targeted renewable energy production to make up 9% of total electricity generated by 2030.

“Marsh has over 50% market share in the renewable energy space in South Africa,” von Widdern explains.

“So, we are the risk provider to more than half of the new alternative energy providers to our state utility, which is a strong position to be in and we understand that space quite well.

“As you move forward in that innovation from the risk finance point of view, many of these new independent power producers and/or sectors need to have a form of alternative capital or strategic risk finance product service, because there are times when difficult to insure events happen.

“Whatever the issue is, it could be a long period of absence of sunshine or wind, more thinking is going in to protecting those businesses. That’s a sector that’s going to continue to grow and where we are well represented,” he says.

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STAYING AHEAD OF THE PACK MRC in South Africa is leagues ahead of its counterparts in the region in terms of experience

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company profile and capabilities; von Widdern explains that it is the quality of the staff at the company that underpins its continued success.

“It really is down to the high variety of well experienced and skilled staff in four or five areas of risk management that are not available in any other provider in the local market. Our teams in those areas are three, four, five times any similar team in the market,” says von Widdern.

After moving into modern office facilities in October, 2013, to bring together the teams following the merger with Alexander Forbes in 2012, MRC has seen strong and continued growth.

“We have certain competencies, but we haven’t locked up the market. There are other service providers for every one of the services we offer. We are under constant pressure to justify a premium price.

Market entrants are constantly coming in so we have to try and be nimble as well as being corporately well aligned.

“There is a lot of competition but it keeps us alert and that is fine.”

Aside from von Widdern’s confidence in his team, it is his own influence on the company, in industry

experience and leadership that has also contributed significantly to its number one spot in the South Africa risk consulting arena.

“I’ve been in financial services, in one form or another - either asset management or insurance and risk, for most of my career,” von Widdern explains.

“When I arrived at Marsh, I had the option of becoming a senior financial executive or working in more of a consulting type role. Marsh in South Africa was fairly small at the time but had some very large corporate accounts like Anglo American,” he says.

“We wanted to focus on very large clients in a way that we could add value, make sure that we understood the full range of strategic risks and bring a new level of thinking.

“I came at it from a financial strategic element. I was also appointed to the board of Marsh and through that process understood that we had access to risk consulting engineers and a variety of other specialist risk areas. As a result of my interest in that area, the division was handed over to me in late 2002, and from early 2003, I started travelling around the world, seeing how all these specialist practices worked whilst still continuing with my normal job in South Africa.”

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Marsh Risk Consulting

jun 14 PAGE 33

Company profile

Following a hectic time for von Widdern in the mid 2000’s when he was responsible for strategic development in Latin America, Africa, Australia and

“We support clients with the complete foundation for risk management and regulatory compliance including standards development, training and implementation” Asia, he took on different responsibilities for Marsh in the Middle East and Africa.

“From 2009 to 2011, I was given the responsibility

PAGE 34

of the Middle East as well as South Africa so I spent half of my time in the Middle East and half in South Africa. That was how I got to know those countries and roll out strategic value propositions for a variety of risk consulting services.

“In the meantime we grew the business in South Africa and in 2011 we completed the deal where Marsh bought Alexander Forbes Risk Services and from the beginning of 2012 my focus was purely on South Africa because we then had a very large risk consulting team,” says von Widdern.

“We had nearly 100 colleagues in the combined risk consulting team based on 45 from Marsh SA and the Forbes team was already 65 strong. Forbes in South Africa had nearly 800 people whereas Marsh only had around 200.

“We put the teams together and they were very complimentary in terms of their skills sets,” he says.

“In the local market, the approach and the value proposition of Forbes and Marsh was very similar; to give the highest quality professional service and really understand clients well. It was really the upper end of professionalism and technical competence.

“Forbes by their size and history and scale, had a

Marsh Risk Consulting

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jun 14 PAGE 35

company profile very well established sectoral footprint – hospitality, financial services and others. Marsh, because of the globals, was very strong in mining, banks and some other industry elements. In almost every industry sector, Forbes had very good penetration and that was just a fact of life as they had, through their networks, grown a very solid company over 40-50 years.”

In October 2013, von Widdern was named Risk Manager of the Year by the Institute of Risk Management South Africa (IRMSA) – recognising him as one of the best risk professionals in South Africa.

Over the years MRC has displayed its resilience and ability, time and again, to adapt and stay ahead in an ever-changing industry sector. An inherent focus on collaboration, investment in people, innovation and thorough, analytical business practises has made it a household name for risk assessment and a trusted partner for new, untried investments as well as traditional risk areas.

Von Widdern explains that the company wants to continue along the same path in the years to come, developing its areas of specialty further: “We want to be recognised as a provider of more wide scale solutions to large corporates.

“Whereas now we might do a particular area of specialised fire prevention, we have the capability to do really wide ranging solutions; materially improving the clients total cost of risk in its direct and indirect measurements.

“We’ve started that journey in terms of very large clients and we’re getting good recognition for that.

So, we want to see ourselves as being recognised in the future as having that ability to make a material difference to our clients across multiple areas of activity.”

Encompassing MRC, Marsh Africa itself, in expanding its African footprint, is ensuring that the company will be well placed for the years of huge socioeconomic development predicted for the continent’s future – once again, displaying its ability to really understand what is needed and where it needs to develop its services.

The organic growth experienced at MRC in just the last 12 months shows that the company as a whole continues to truly understand what is expected of it, but perhaps more importantly, can anticipate better than any other what is needed to maintain its leading position in the years to come

.

Dotting your ‘i’s and ‘crossing’ your ‘t’s Christoph Leuzinger, Executive Head: Global Corporate, Zurich South Africa With a number of global and South African companies expanding across the continent and an evolving global risk landscape becoming more interconnected, cross-border insurance has never been more pertinent. But what are the opportunities and challenges that this presents for insurers and brokers?

Expansion...

The demand to access Africa is increasing across all sectors, presenting opportunities for insurers operating in the specialist space. In terms of construction and telecom, the African Development Bank (AfDB) has estimated that the continent’s infrastructure investment deficit stands at a staggering US$50 billion per year. Consequently, many African governments have prioritised infrastructure development, allocating large portions of national budgets to ongoing projects, welcoming private sector participation and funding.

A fundamental for successful expansion however, is energy security. The World Bank estimates electricity outages on average cost African countries around 2.1% of GDP and with little sign of a clear solution on the horizon it is no surprise that renewable energy projects are picking up pace. Fleet insurance is another opportunity as goods, products and supplies will need to be transported to other countries with each presenting its own set of risks.

Barriers and borders As a result, cross-border cover has become a necessity. First and foremost, insurers will have to select local partners who are familiar with in-country regulation and governance or set up their own operations in particular markets.

This is imperative as many countries have policies in place that facilitate the growth of their own insurance sectors.

Insurers must also be certain about how they will deal with language and skills barriers and how they will manage these relationships. Legal and tax requirements will also be a consideration, further reiterating the importance of establishing robust networks. Here, skilled brokers who are familiar with these markets and the associated risks, and who are able to advise customers, are essential.

Adding value Ultimately, operating and succeeding in this space is about guiding customers every step of the way and making sure that processes are diligently followed and fit within legislative parameters. This is what cross-border cover is all about – expertise meeting customer needs, creating a win-win for all players involved.

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Marsh Risk Consulting

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company profile

Expert logistics from beginning to end Editorial: Tim Hands

Industrial Logistic Systems sets out to provide peerless expertise in the field of supply chain logistics, offering consultancy from initial strategies right through to execution. An essential part of any company’s plans to develop, add space, consolidate or even relocate, ILS helps to make correct decisions through analysing existing operations and projecting future requirements.

Concerning the all-important discipline of managing the flow of goods between the point of origin and the point of their eventual consumption, the field of logistics can take in the management of resources from those physical items such as food, materials, animals, equipment and liquids, through to more abstract items such as time, information and even energy. A complex and varied discipline, at its centre is the aim of minimising the use of resources, a common logistics motivation for both import and export. To this end, ILS offers its internationally recognised expertise, accrued over its 22 years of professional operations and more than a century of engineering experience.

ILS is clear in its overarching mission to be the leading provider of expertise in the field of Supply Chain Logistics, through its many and varied key focuses. These

PAGE 38

range from the perhaps more obvious, such as supply chain strategies and materials handling systems, right through to the analysis and advising of best practice standards and the optimisation of both people and productivity.

ILS was started up in 1987 by Gary Benatar and Martin Bailey, when the pair decided to offer a pioneering facilities planning service. “We were doing facilities planning, laying out operations and using our skills as industrial engineers to lay out a site or operation and make that efficient. We were also consulting in materials handling and systems design and selection,” explains Managing Director, Gary Benatar.

AHEAD OF THE COMPETITION ILS’ work is governed by a strict set of principles, all of which are geared toward setting itself as the industry

Industrial Logistic Systems

standard in supply chain consultancy. What helps set it apart from its many competitors in the market of supply chain and logistics consultancy, alongside its vast experience of executing strategic plans, is the personal aspect that permeates the full range of its operations. ILS seeks to act as an extension of its clients business, acting as the client’s very own specialist logistics department and subsequently advising as though it was its own business.

Ultimately, the interests of the client are of the utmost importance at the company, above the influence of any supplier or service, to ensure that ILS consistently and unfailingly adds value and worth in return for the fees paid to secure its service, and repay the trust that clients daily put in its work. To this end, all work carried out is done so to the very highest standards, allowing clients in turn to be able to deliver world class best practice. “Our

job involves building a strong relationship with clients,” says Bailey. “Our guys who are present at the start of a project are present all the way through to the end.”

A HISTORY OF LOGISTICS The direction in which world business is moving means that companies across the globe are becoming ever more reliant on flawless logistics and supply chain management, in order to keep pace with the demands of an increasingly global economy. The term ‘logistics’ itself, and actions associated with the field, in fact originated in the military, where, in war, logistics applied to the process of supplying equipment and supplies to troops.

Logistics as a business concept, meanwhile, evolved in the 1950s with the increasing complexity of supplying businesses with materials and shipping out products in a

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company profile supply chain which was becoming ever more globalised.

Today, the business sector uses this term to describe the efficient flow and storage of goods from point of origin to the point of consumption. The supply chain is a vital part of this process, and includes transportation, shipping, receiving, storage as well as the management of all these areas. Within the business sector and with a similarly far-reaching scope, logistics can be applied to information, transportation, inventory, warehousing, material handling, and packaging, disposal and security.

As the pre-eminent worldwide authority in the field, The Council of Supply Chain Management Professionals defines logistics as, “that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” Or, more briefly, it is, “the management of inventory, at rest or in motion.”

With the advancement of the world and the increasing grip of the digital age, ILS has been able to build its relationships in different ways, profiting from ever developing technology. “We work with clients from all over,” explains Bailey. “Because of this we invested

PAGE 40

heavily in infrastructure, things like video conferencing and a strong IT backbone. This means we are able to communicate and do things remotely.”

This is somewhat different to the way the business was run in the beginning: “When we started ILS, drawings were done on a drawing board and emails didn’t exist.

Faxes had only just started becoming popular but life was still easy as the expectation of instant gratification and result from the customer was not there.”

A major part of what makes the ILS way of operating so crucial to a business is its ability to maximise customer value through active supply chain management, and achieve a sustainable competitive advantage for the client.

The service that ILS offers can be applied right from the grass roots, if necessary, with a heavy focus, for example, on all things concerned with location. Of course, it is from a correctly planned site that all corporate success will stem, and ILS takes care of every facet of the provisional planning in this regard, analysing the location to put the business at the heart of its target market and assessing all related costs, from land and construction to areas of strategic risk. A complete proposal can then be produced, based on the nature of the operation and the respective space and budget considerations.

Industrial Logistic Systems

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TOYOTA FORKLIFT – A BENCHMARK FOR PRODUCTIVITY AND SAFETY IN AFRICA’S RETAIL WAREHOUSING SECTOR The extensive business partnership Toyota Forklift enjoys with ILS (Industrial Logistics Systems) has been an invaluable contributor to Toyota Forklift‘s market leadership in the Southern African retail warehousing sector. The partnership has seen both a number of important awards for Toyota Forklift, including a recent major contract for the Shoprite Group of Companies, as well as the expert input of ILS’s unparalleled understanding of and commitment to pushing the boundaries of technology in supply chain logistics.

The recent order for major retail group, Shoprite, covered the supply of a comprehensive range of warehousing equipment for its Shoprite and Freshmark operations. Continuing a more than 15 year business relationship with Shoprite, the contract, awarded in 2014, is also testimony to Toyota Forklift’s commitment to partnering with its customers for life.

The equipment supply and on-site maintenance contract includes one of the first deliveries of the zero-emission and exceptionally efficient Toyota Traigo electric counterbalanced forklift trucks to an operation in South Africa. The order, of which the BT range of warehousing equipment comprises a major portion, is mainly for Shoprite and Freshmark distribution centres in Cape Town and Centurion.

Toyota Forklift’s award winning range of Toyota Forklift and BT branded forklift trucks and warehousing equipment covers applications from loading to horizontal transport, stacking and order picking, all supported by high-quality aftermarket services and ancillary products such as batteries and chargers for forklifts. The range is distinguished by innovative technologies, which have set a benchmark in the market for improved productivity and safety. Such innovations include the powerful forklift fleet management solution, the Toyota I_Site, which now offers web-based control.

As the sole distributor of Toyota Forklift, BT, Raymond and Flexi material handling equipment in Southern Africa, Eqstra Industrial Equipment (EIE), is the largest supplier of forklifts to the Southern African market and has the most comprehensive product support infrastructure in the region. As a result, EIE is well positioned to offer the retail sector a total materials handling solution, based on exclusive distribution agreements for best-in-class brands.

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company profile

BUSINESS STRATEGY ILS will, as standard, develop a whole outline of prospective building specifications, including clear height, column spacing, floor slab thickness, recommended lighting levels and even the number and location of doors. Once the detailed planning stage is reached, ILS will then prepare tender specifications for all the necessary equipment, again working closely with the client to evaluate all tenders, and make recommendations before and seeing that the equipment is properly installed and functional.

Crucial to the successful flow of merchandise through this new building, ILS develops written functional reports for the distribution centre’s processing system, which describe how each function within the facility operates. With such an exhaustive service it is a particularly profitable time to be in such a position as ILS’s, with PwC global industry leader for transport and

PAGE 42

logistics Klaus-Dieter Ruske highlighting the fact that, “Africa is home to one billion people who will become consumers,” which will require the delivery of goods and services. “There is huge potential for transport and logistics companies in Africa,” he underlined.

South Africa was recently identified as being especially well positioned to shine as a global business partner, with the performance of its logistics sector being a key component in this. Indeed, six of the world’s ten fastest growing economies are in sub-Saharan Africa. Running supply chains properly is crucial to Africa’s success, as growth continues and consumer demand rises.

ILS Chairman and Executive Director, Martin Bailey is unequivocal that with a solid supply chain as a foundation, effective operations can then fall into place.

“You can have two operations with exactly the same processes, the operations are identical but the technology and the methods used to execute strategies are different.

Industrial Logistic Systems When you get the execution of the supply chain right it makes everything easier.”

“The South African government’s increased focus on and investment in infrastructure development have seen more than R260 billion being set aside for transport and logistics projects,” states Dr Cornelius Ruiters, Executive Director of the CSIR’s Built Environment research domain, adding that, “The effective maintenance, expansion and management of our country’s infrastructure will enable South Africa to compete at a higher level globally.”

Cobus Rossouw, Chief Integration Officer of Imperial Logistics, echoed that sentiment: “South Africa is a leader in complex, emerging and dynamic logistics environments and has achieved success despite geographical impediments, severe skills shortages and lack of economies of scale.” ILS is perfectly placed to build and capitalise on this opportunity. It provides the full range of logistics expertise, also specialising in project management and systems commissioning of the finished article, and continues to strive to provide the very latest in technology, software and systems, to ensure the highest level of productivity and service for its clients.

ILS has already been involved in developing innovative applications of technology and related

systems, including labour tracking systems and mechanised handling systems, and now looks to build yet further on the competences it can offer. Whether this is expansion into E-Commerce fulfilment logistics, or moving up the supply chain into purchasing and inventory optimisation, ILS will continue to be ideally positioned to aid any client in matching their particular environment to the operations and systems best suited to their needs.

Having become recognised as an industry leader in South Africa, the company has developed its opportunities with international clients, and targets movement into new industry sectors as key to its growth. “We offer such a comprehensive service and it is so broad and so different to anyone else in the world that it is perhaps too broad and we cannot grow it further. What is growth for us is new types of industry.

Retail is maybe our biggest, manufacturing second and pharmaceutical third but over time we will find a new niche and grow there. It could be government or something similar,” explains Benatar. There looks set to be much growth and expansion in South Africa and the commercial world looks to companies such as ILS for inspiration; it is a business that is truly an example of the very best practice the industry can offer

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company profile

Caring, compassionate assurance

Editorial: Ajuanne Payne

Rand Mutual Assurance has been providing caring, compassionate compensation to its mining sector clients for over a century and is the go-to partner for the large corporates that form the South African Mining Industry. Delving deeper in to the company’s operations, we explore its continued, dedicated services to an industry that has long been a cornerstone of the national economy…

For over 120 years, Rand Mutual Assurance has been the administrator of choice for assurance services to the South African mining industry - providing workers’ compensation for mining industry employees injured during the course of their employment.

In an industry that has without a doubt been the true foundation of the South African economy, Rand Mutual is a long-term trusted partner, providing services to its South African clients in their operations at home and across the border.

Founded in 1894 by three mining companies on the Witwatersrand as a non-profit mutual assurance company, Rand Mutual filled an urgent need for protection in one of the more hazardous industries operating locally.

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

PAGE 44

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.”

With the growth of South Africa’s secondary and tertiary industries in the last few decades, the relative contribution of the mining industry to GDP has declined, accounting for 18% of national GDP, according to the Chamber of Mines, and roughly 1 million jobs. However to put that in to perspective, the mining sector in South Africa accounts for roughly one third of the market capitalisation of the

Rand Mutual Assurance

JSE and is one of largest pulls for foreign investment in the country.

Although safety standards have been improving for miners year-on-year, the industry is still considered one of the most dangerous, with 84 recorded deaths in 2014. It is Rand Mutual’s job to ensure the safety of these workers across all areas it is responsible for; companies mining: coal, diamond, chromite, vanadium, and the platinum group metals.

A TRUSTED PROTECTOR Rand Mutual’s licence is granted in terms of the Compensation for Occupational Injuries and Diseases Act (COIDA). Implemented in 1946 the Act makes it compulsory for employers to contribute to insuring employees against potential injuries and Rand Mutual is the body responsible for administering to this

directive.

“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.”

The company works exclusively with large corporates and as such has a client list packed with industry leaders and global majors, such as Anglo Gold Ashanti, Anglo Platinum, Anglo American as a whole, Harmony Gold, Lonmin and BHP Billiton.

In order to keep their competitive edge, Rand Mutual tailors its offerings to the varying needs of their impressive client list. “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

PAGE 45

company profile

GUIDING CLIENTS INVESTMENT STRATEGIES Ginsburg Asset Consulting is an established investment advisory business, focusing exclusively on providing independent asset consulting services to a wide range of institutional clients across Southern Africa.

We provide forward-looking, bespoke solutions to achieve results consistent with our clients’ specific needs and investment objectives.

Our business proposition and services are underpinned by our principles of integrity and transparency, ensuring impartiality, objectivity and the avoidance of conflicts of interest.

Our mission is to ensure that our clients’ assets are managed in a responsible, accountable and prudent manner, providing for the best possible return within a sound risk management framework.

For more information, please contact our offices: Tel: +27 21 685 7761 (CPT) Tel: +27 11 326 5373 (JHB) email: info@ginsburg.co.za www.ginsburg.co.za Authorised Financial Service Provider Licence No. 27526

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compensation scheme has a number of components - medical aid, injury while on duty, and a disability calculation resulting in a lump sum or pension,” explains Singh.

“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 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.”

GOING THE EXTRA MILE RMA Life Assurance Company Ltd. (RMA Life) was established as a wholly owned subsidiary of Rand Mutual in 1990 and was set up in order to underpin Rand Mutual’s general assurance offerings by managing the pension benefits payable to claimants and their beneficiaries.

As a further reflection of the company’s commitment to providing exemplary service, this year

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2014/04/04 4:37 PM

sees it celebrating 10 years of caring for its disabled pensioners by way of a mobile clinic that travels the length and breadth of Southern Africa.

Together with its prosthetic partner, Merissa Nel & Associates, Rand Mutual has completed 10,000 prosthetic reviews through its mobile clinic since it began the service, helping beneficiaries in rural, remote areas who otherwise may not be able to access the right care.

The mobile clinic not only repairs prosthetics on site, but also includes on-site prosthetic manufacturing as part of the service.

A CROSS-BORDER OPERATION Rand Mutual employs over 160 staff members and overseas six main offices around the country and three satellite offices in the Eastern Cape, Mozambique and Lesotho from its head office in Johannesburg.

“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.”

Migrant workers make up a significant number of the employees working in the mining sector

Rand Mutual Assurance in South Africa. With workers travelling from Lesotho, Botswana, Mozambique, Swaziland and Zimbabwe, insurers have to find ways to manage the complexities this throws up.

“Looking after cross-border workers and exworkers 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.”

GROWTH AREAS Although the government in South Africa is Rand Mutual’s only market competitor, it has been engaging with the company in recent times to improve national welfare insurance mechanisms, particularly 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 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,” explains Singh.

“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.

“Workers compensation benefits have a number of components. There is a medical aid component, a leave-pay 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

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PAGE 47

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

Rand Mutual is a company that prides itself on being technology-forward. It has improved upon its online platforms over the past year to offer several new functionalities and services to stakeholders and continually pursues opportunities to license its IT system to third parties.

In other areas of development, a parallel focus for growth at the company 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

PAGE 48

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 cost-effective 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.”

In terms of expanding the company’s footprint further in to Sub-Saharan Africa, Singh explains the complexities behind such a move.

“There is strict legislation between different

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company profile

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,” explains Singh.

“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.”

PAGE 50

INDUSTRY GROWTH Rand Mutual’s business has grown parallel to the growth of the nation’s mining industry over the years. “Pre-2008 we may have had 90% of the mining business. And we would try to convince the remaining 10% to join us.

“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.”

PEOPLE POWER Like any company, Rand Mutual’s employees form

Rand Mutual Assurance

the backbone of its company and are the basis for its success. The company’s employees have a wide range of skills across all the areas it services, especially regarding the medical nature of the company.

“We have people who assess 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,” explains Singh.

“On the other side of the business we have people who capture claims. They are usually more junior 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’s a query, they know exactly how to report it.”

It is this concentration of expertise and its 120 year track record that has made Rand Mutual the trusted partner to the South African mining industry that it has become. With technological advancements being made to further streamline operations and the potential for further expansion in the future, it would be no leap of the imagination to see Rand Mutual successfully in operation for another 120 years, ensuring peace of mind for industry workers across the nation

.

Founded in 2006 through the merger of ITQ (est. 2000) and Mindkey Software Solutions (est. 1998), ITQ Business Solutions is a consulting and software development ICT company.

A subsidiary of the black empowered, JSE listed company, Morvest Business Group Ltd. ITQ Business Solutions drives and supports its clients through the provision of custom built software solutions and outsourced /co-sourced development services.

Physical Address 17 Sunninghill Office Park, iSolve House, Peltier Drive, Sunninghill, Ext 71, Gauteng, 2191

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.

Postal Address P O Box 997, Sunninghill, Johannesburg, 2157

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.

Telephone Number (011) 087-6602 Facsimile Number 086 621 9666 Web Site Address www.itq.co.za Email Address info@itq.co.za Contact Person Marc Schrader (Director)

ITQ Business Solutions is a Level 2 BEE contributor which has enjoyed solid growth every year since inception, without exception.

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company profile

‘Finding value where others don’t’ Editorial: Rebecca Bingley

Despite only being in operation for four years, Arrowhead Properties has displayed exponential and strategic growth in an industry which is becoming increasingly competitive. Declaring 13.5% distribution growth for the six months to 31st March 2014 compared to the previous year, the company’s asset base continues to grow…

The JSE-listed SA REIT (Real Estate Investment Trust), Arrowhead Properties holds a diverse portfolio of industrial, commercial, retail and more recently, residential buildings, throughout South Africa.

T h e c o mp any ’s main atte ntion lie s with p a yi n g g ro w in g in co me re turns to its inv e stors – t h i s i s d ep end en t o n e scalating re ntals i n t e r m s o f s atis f acto ry re ne wal of le ase s w i t h e x i s tin g tenants , m anag ing the se costs a ss oc i a t ed w ith p o rtf o lios and re nting of va c a n t s pace w ith in the portfolio but pe rhaps m os t i m po rtantly, s ecu ring re v e nue -e nhancing p r op e r t ies .

T h e A rro w h ead p ro p erty portfolio curre ntly c on si st s o f 48% co mme rcial, 3 5 % re tail, 1 4 %

PAGE 52

in dus t ri a l a n d 3 % re s i de n t i a l prope rt i e s a c ros s all n i n e prov i n c e s w i t h i n S out h Afri c a .

In N ov e m be r l a s t ye a r, Arrow h e a d Prope rt i e s an n oun c e d a di s t ri but i on of 3 6 ,4 3 c e n t s pe r c om bi n e d A a n d B un i t for t h e qua rt e r e ndi n g 3 0 t h S e pt e m be r 2 0 1 4 . O v e r t h e s a m e pe ri od l i s t e d i n 2 0 1 3 , t h e c om pa n y de c l a re d a d i s t ri but i on of 2 9 ,3 3 , h i g h l i g h t i n g a 2 4 .2 % im prov e m e n t on ye a r. O v e r t h e ye a r t o Se pt e m be r 2 0 1 3 , t h e re fore , a t ot a l of 1 3 3 ,2 4 ce n t s pe r c om bi n e d A a n d B un i t w a s de c l a re d, a 17 .9 % i n c re a s e on t h e pre v i ous ye a r.

A rrow h e a d’s a c qui s i t i on of Vi v i de n d I n c om e Fu n d a n d e n t e ri n g i n t o t h e re s i de n t i a l m a rk e t were n a m e l y t w o k e y fa c t ors w h i c h i m pa c t e d pos i t i v e l y on t h e bus i n e s s a n d on i t s re s ul t s for the ye a r.

Arrowhead Properties

C O O, Mark K ap lan e xplaine d: “We are p l e a s ed w ith the results, which re fle ct our e f f o rts d u rin g th e ye ar. We continue d to i m p ro ve th e q u ality and size of our portfolio t h r ou gh acq u is itio ns in line with our strate g y a n d cap italized o n the consolidation that t oo k p lace in the s ector with the succe ssful a c q u is itio n o f Vivide nd which adde d a pp ro ximately R 2. 3 billion worth of re tail, o f f i c e and ind u s trial prope rtie s to Arrowhe ad’s p o r t f o lio . We als o div e rsifie d the Fund t h r ou gh the es tab lishme nt of Arrowhe ad R e s id ential.”

Prior to joining Arrowhead, Kaplan held the position of Managing Director at Aengus Property Holdings, responsible for controlling a portfolio of assets worth an estimated R300 million.

“ T h e qua l i t y of t h e a s s e t s i n our port fol i o i n c re a s e d ov e r t h e pa s t ye a r a n d i t i s c l e a r t h a t t h e c urre n t A rrow h e a d i s n o l on g e r t h e A rrow h e a d i t w a s a t l i s t i n g w i t h pe rc e i v e d s e c on da ry prope rt i e s . E x c l udi n g t h e re s i de n t i a l port fol i o, t h e n um be r of i n di v i dua l a s s e t s t h a t w e m a n a g e h a s i n c re a s e d from 8 9 a t l i s t i n g i n 2 0 1 1 t o 1 5 5 a t pre s e n t . T h e a v e ra g e v a l ue pe r prope rt y a l s o i n c re a s e d from R 1 7 m i l l i on t o R 4 5 m i l l i on , a s w e c on c e n t ra t e d on bui l di n g s i z e a n d qua l i t y,” e x pl a i n e d CE O, G e ra l d L e i s s n e r. “ I a m e x c i t e d a bout t h e ye a r a h e a d,” L e i s s n e r a dde d. “A rrow h e a d i s t a rg e t i n g t o a c qui re R 1 bi l l i on of c om m e rc i a l (re t a i l , offi c e a n d i n dus t ri a l ) prope rt y ov e r t h e n e x t fi n a n c i a l ye a r a n d w e w a n t t o i n c re a s e our s t a k e i n

PAGE 53

company profile D i p u l a P ro p erty Fu nd . The re is an additional R 1 bi l l i o n o f res id ential prope rty in the p i pe l i n e , s ettin g th e course to imple me nt what w e be l i e ve to b e very u nique opportunitie s in t h e r e s i d ential p ro p erty se ctor g oing forward.

We e x p e ct that the p o rt folio of prope rtie s a s a t 30 Sep temb er 2014 should produce d i st r i bu tio n gro w th p er combine d A and B l i n k e d unit o f 11% f o r the ye ar e nde d 3 0 S e pt e m b er 2015.”

VIVIDEND INCOME FUND In a deal valued at an estimated R430 million, Arrowhead bought 31.7% of Vividend Income Fund’s linked units from Coronation Fund Managers in December 2013. This transaction added a further

PAGE 54

“We support clients with the complete foundation for risk management and regulatory compliance including standards development, training and implementation”

Arrowhead Properties R2.3 billion worth of commercial, industrial and retail properties to the company’s current portfolio.

Arrowhead’s CFO, Imraan Suleman, explained: “In terms of the Vividends fund, we looked across the sector and we looked at yields that were trading above Arrowhead, it was in keeping with our strategy to acquire a yield in access of our cost of funding.

We approached one of the larger shareholders, Correlation Asset Management, who held a 34% stake in Vividend.”

“Over the course of a year, we’ve engaged in discussions with them where we have proposed a swap ratio, so for all of the Vividend unit they held, we proposed issuing them with new Arrowhead A and B link units at a ratio that was accretion to Arrowhead from an income perspective. Over the period of a year those negotiations have taken place and initially we proposed a ratio that would give us the accretion that we were looking for and that didn’t suit Correlation so it was turned down.

After a year or so we agreed a swap ratio that was satisfactory to both parties.”

Suleman explained further that it was the quality of the portfolio which attracted Arrowhead to Vividend, with its biggest asset in access of R500 million access parking in Cape Town and with strong retail buyers – “We really thought it was the type of asset from which Arrowhead could attract serious value. It was a perfect fit for us and it offered us yield accretion whilst improving the quality of our overall portfolio.”

“We are pleased that the Vividend transaction has had the support of the Vividend management and board. The transaction is expected to create certainty and unlock significant value for Vividend shareholders by providing them with access to a larger more liquid fund with faster growing distributions,” added Leissner.

increasing from R2,8 billion to R4,4 billion as of 30th September 2013.

“We have worked hard during the past six months growing our asset base, acquiring five commercial, industrial, retail properties for R535 million and residential properties for R150 million, all at yields that are revenue enhancing. We are confident that our strategy provides our investors with a diversified portfolio at acceptable risk levels that enhance distributions,” Leissner explained.

By issue of Arrowhead Units, the company also acquired 22% of the B units in Dipula Income Fund but made the decision to dispose of the Education Building in King Wiliams’ Town for R2.8 million.

“Our treasury places excess funds in our access facility to reduce the overall interest charge,” Suleman added. “The effective interest rate for the period is 8.28% and interest rates on more than 90% of our debt has been fixed for five years at rates of between 9.37% and 9.58%.”

“We will continue to grow Arrowhead in line with our strategy. Taking into account the acquisitions concluded to date and the performance of the existing portfolio, we expect to achieve a distribution growth per combined A and B linked

AssOciAted insurAnce BrOkers i capital Risk Services (Pty) Ltd t/a

100

95

75

25

5

Our clients’ business is our business 0

AIB are independent short-term insurance brokers located in Sandton, Johannesburg, South Africa.

We are Arrowhead’s Insurance Brokers and proud to be associated with them.

AIB place business with most local insurers and are agents for Brokers at Lloyd’s of London

POSITIVE GROWTH Following the Vividend acquisition, Arrowhead announced positive interim results of 13.5% distribution growth in May last year. The company declared a distribution of 32,38 cents per combined A and B unit in the quarter ending March 2014, producing a 15,48% improvement on 2013. Over the six months ending March 2014, resulted in 62,58 cents per combined A and B unit, amounting to a growth of 13,49 cents compared to 2013.

The company’s asset base also grew from R1,5 billion to R4,6 billion with its market capitalisation

3rd Floor, 12 Fredman Drive, Sandton, 2196 Email: info@aib.za.com Tel: 27 (0)11 883 2400 Fax: 27 (0)11 783 3664 www.aib.za.com AIB is a registered Financial Services Provider FSP 19819

PAGE 55

company profile unit for the year ended 30 September 2014 of 16.8% on the distribution to 30 September 2013,” concluded Leissner.

CONTINUED EXPANSION It is clear from its recent results and growth the company has experienced in the past few years that Arrowhead Properties has maintained a leading position in an industry that is increasingly competitive and continually expanding into new markets.

It is perhaps Arrowhead’s unfailing strategy, whether dealing with residential or commercial property, to only look at a potential acquisition if it offers a yield in excess of the company’s costs for funding and is enhancing to the company’s existing distribution.

Speaking to IndustrySA back in September last year, Imran Suleman explained: “In the last 18 months, we’ve bought between R3R4 billion worth of property, R600 million of that was on the residential side, so the way we look at residential at present is an extension

PAGE 56

of Arrowhead’s strategy. Our strategy is to buy yield enhancing assets and we would assess those in whatever sector the opportunity would present at that point in time and we see residential as an extension of that. This gives us more opportunity to buy property and grow the fund.”

Although starting out with just 84 properties, Arrowhead’s portfolio has continued to grow, last year reaching 185 properties with the average property size rising to £14 million, up from 17 at listing.

“As the property portfolio has grown, we’ve added on asset managers and legal resources.

We’ve also bought on one specialised person to add up the residential side of things, he was from a company called the Johannesburg Housing Company, he’d been there for seven years and was second in charge to the CEO. He was responsible for managing 4, 000 residential units that the Johannesburg Housing Company own, he’s very experienced in his field,” Suleman concluded

.

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PAGE 57

company profile

Number one on the continent Editorial: Ajuanne Payne

The most successful bank in the history of South African financial services, Standard Bank has continued to go from strength-to-strength over its 150 years in operation. In this issue we snapshot the operating principals that have contributed to the company’s prestigious track record and the industry recognition the bank continues to receive...

When you think of the banking sector in South Africa and, in fact, Africa itself, Standard Bank is the first name that comes to mind as a true pillar of the African financial services sector and one of South Africa’s oldest companies.

Standard Bank Group can trace its roots back to 1862 over 150 years ago and is the largest banking group in South Africa. Headquartered in Johannesburg, the company employs over 53,000 staff members at a group level and is operational in 32 countries globally and 19 across the African continent.

With such a long and successful history in the financial services industry, Standard Bank ended 2014 on a high – winning a whole host of industry awards and with recorded revenues up

PAGE 58

by 15% to R84.24 billion at a group level.

The company operates out of its three main business units; personal & business banking, corporate & investment banking and wealth/ liberty.

The Standard Bank of South Africa is the largest operating entity within the group and the base from which the company began its international expansion in the early 90’s, with the acquisition of the ANZ Grindlays Bank in 1992 and its operations in eight African countries.

INTERNATIONAL FOOTPRINT, LOCAL FOCUS One of the key contributing factors to Standard Bank’s continued success is its focus on local

Standard Bank SA

expertise in order to expand and secure its cross-border businesses. With a rise in the withdrawal of international lenders following the 2008 global economic crisis, the continent has seen a paralleled increase in demand for regional lenders that can provide the same level of world-class expertise.

“The financing gap left by the European banks continues to manifest itself but we believe this provides an opportunity for Pan African banks such as Standard Bank to step up to the breach,” explains Gwen Mwaba, Group Executive Vice President, speaking at the 6th annual East Africa Trade and Commodity Conference last year.

“Standard Bank aims to be the bank of choice in Africa and given the number of new clients

we’re on-boarding, particularly in the oil and gas sector, we expect the demand for locallygrown banking services to help propel us in to that position.”

Using all their competitive advantages to the full, Standard Bank aims to be the financial services provider of choice for the swelling economies of the continent. The company offers the complementary benefits of being able to offer the same world-class levels of service as their international counterparts, while also being furnished with the local-knowledge that is so essential to any investor wishing to do business outside of its usual footprint.

AWARDS Not a year can go by without Standard Bank gaining the recognition of its peers and

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company profile

winning prestigious accolades and awards.

The final quarter of 2014 saw Standard Bank scoop a host of awards – a demonstration of the strength of the bank’s position within the South African financial services industry.

In FX Week’s 2014 survey of the global foreign exchange industry, Standard Bank Group was awarded Best Bank for South African Rand for the second consecutive year. As the benchmark for performance in the global FX industry, the FX Week Best Banks Awards are the most precise indicator of which institutions are leading the market, with analysis from banks, corporate treasurers and investors.

The decision of the London-based publication to begin including the Rand in the awards in 2013 was a reflection of the growing importance of the South African Currency in the global trading arena.

Richard de Roos, Head of Foreign Exchange

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at Standard Bank Group, explained further what the accolade means for the company: “This is certainly one of the premier awards for currency market makers across the foreign exchange trading industry so Standard Bank Group is very honoured to receive this recognition, particularly since we are one of a very small pool of regional banks to be included in the survey.

“The fact that the Rand trades in the same time zone as the highly liquid and competitive European market is testament to the relevance and quality of Standard Bank Group’s trading and settlement capabilities. The stature and quality of the participants in this survey certainly make this award a very relevant one to the broader industry and an achievement for which Standard Bank Group is duly proud.

“This award is not only a recognition of our relevance to the market but it also validates

Standard Bank SA our strategy to leverage our dominant position in our local franchise markets in order to extract liquidity for the purposes of solidifying our growing role in international currency markets,” says Mr de Roos.

“The fact that we have been recognised by all the major participants in the market shows that our strategy is paying off.”

As South Africa’s leading market maker and

“The financing gap left by the European banks continues to manifest itself but we believes this provides an opportunity for Pan African banks such as Standard Bank to step up to the breach” biggest Rand trader, Standard Bank’s strong footprint across the African continent means it is ideally situated to maximise on opportunities in all the regions it services and to work with investors both locally and across the globe.

Standard Bank Group collected no less than 18 awards at the prestigious Sibos conference in Boston, USA in October 2014. Two of these were awarded to the bank at the EMEA Finance Magazine awards ceremony, one award; ‘Strongest Bank in South Africa’, from The Asian Banker and a total of 15 were won by the bank at the Global Finance Magazine awards ceremony for Global Finance Transaction Processing.

“We are delighted to receive these awards from such prestigious publications,” explained Standard Bank Group’s Global Head of Transactional Products, Neil Surgey. “They provide further confirmation of the success of our client-focused strategy and desire to serve clients through our well-established physical

presence in Africa and our global connectivity that links clients to Africa.”

Aside from this clean-sweep in October, the bank was also recognised in the same month as ‘Most Innovative Bank from Africa’ by The Banker Magazine.

At a time when multi-national corporates are increasingly focusing on investment opportunities on the African continent, Standard Bank has the track-record and experience to provide the financial backing that is essential for the strong growth being seen across the African regions.

The company has extensive sector expertise and strong, long-term relationships across the continent and is known for its innovative, tailor-made approach to the varying complexities of the cross-border financial markets.

Standard Bank has continued the trend into this year and was named ‘Best Trade Finance Bank in Sub-Saharan Africa’ by Global Trade Review. This award further illustrates the

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PAGE 61

Company profile

company’s successful approach to cross-border growth while maintaining local knowledge.

LOOKING AHEAD Over the past six months Standard Bank has gained the recognition of its peers across a plethora of industry awards and continues to demonstrate its strength to the global markets.

Already this year, Africa’s largest pension fund, the Government Employees Pension Fund (GEPF), has chosen the company to provide a comprehensive range of investor services product solutions for its more than R1.5trillion of assets.

Standard Bank Group Chief Executive Officer Sim Tshabalala explained the significance of this win in a statement in February of this year, “We are delighted that GEPF has entrusted Standard Bank to act as the sole custodian and recordkeeping agent for the Fund’s entire investment portfolio. This appointment further

PAGE 62

strengthens our longstanding partnership with Africa’s largest institutional investor.”

Within the same week as this, the company partnered with Eskom to arrange a USD1.25 billion bond sale to international investors.

Right at the end of 2014, Standard Bank played an important part in arranging the finance package for the ground-breaking Lake Turkana Wind Power (LTWP) project. With the Help of Standard Bank and 11 other financiers, Africa will see its largest wind farm to date built in Kenya in the next few years.

The LTWP project will provide 300 MW of clean power to Kenya’s electricity grid, with total cost standing at around €623 million – the largest private investment in Kenya’s history.

As one of the mandated lead arrangers for the project, Standard Bank will also be providing the interest rate hedge for the project and has played a key role in bringing private investment in to the burgeoning renewables energy

Standard Bank SA industry in Africa.

An important aspect of supporting the fast rates of growth being seen across Africa socio-economically is financing essential infrastructure projects – and it is financial institutions such as Standard Bank that will pave the way to further development.

“Power generation is a very relevant sector in East Africa at the moment, especially when one considers the energy shortfall and the important role that it plays in boosting economic growth,” explained George Kotsovos, power and infrastructure finance executive “Standard Bank is proud to have been able to offer its expertise to contribute towards boosting the generating capacity of a fastgrowing economy like Kenya, which remains the economic power house of the region.”

Standard Bank is evidently the go-to institution for the biggest and most influential deals in the country and with such a long and illustrious history, it would be hard to imagine the African financial services sector without the presence of its iconic banking giant.

After over 150 years of success and with steep growth predicted across the whole African continent in the next decade, the bank will continue to see ever increasing demand for its knowledge and a level of service unrivalled by the other localised banking groups that service the regions

.

“The fact that we have been recognised by all the major participants in the market shows that our strategy is paying off”

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company profile

Elevating Namibian mining Founded in 2006 and headquartered in Windhoek, Namibia, Swakop Uranium operates as a subsidiary of CGNPC Uranium Resources Co. Ltd, and focuses on the exploration and development of the Husab uranium mine, located in the country’s western-central Erongo region.

Editorial: Tim Hands

The Husab Uranium Project comprises a uranium mine currently under development near the town of Swakopmund, located around 60 kilometres from Walvis Bay. A 2.5 billion dollar project, it has been in development since the signing in Beijing of an EPCM contract in November of 2012, following the granting of a license to Swakop Uranium in late December 2011 by the Namibian Ministry of Mines and Energy. Studies show that the mine reserves contain the highest grade, granite hosted uranium deposit in the whole of Namibia, with the potential here for 15 million pounds - 6800 tonnes - of uranium oxide per annum.

Once placed into production, this figure will make it the second-largest uranium mine in the world, and elevate Namibia’s total production

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capacity, “past Niger, Australia and Canada to the second rung on the world ladder of uranium producers,” states Swakop Uranium’s CEO, Zheng Keping.

The Husab mine The Husab mine is estimated to contain approximately 280 million tonnes of uranium ore, a quantity that will take close to 20 years to mine. Around 4,000 construction jobs are expected to result from this colossal project, of which 1,200 will remain permanent, while the extracted uranium is eventually expected to contribute 5% of the country’s gross domestic product. According to Percy McCallum, Swakop Uranium’s Director Human Resources, the thinking behind such a concerted recruitment drive is to

Swakop Uranium

ensure operational readiness, through focussing on building the strength of the team. “Our aim is to attract and retain skilled individuals and to coach and mentor emerging talent, so that the company can ensure it has a world-class pool of Namibian employees,” he explained.

Until April 2012, Swakop Uranium was a wholly owned subsidiary of the Australian company Extract Resources, until Taurus Minerals Limited of Hong Kong – itself a subsidiary of CGNPC - became the new owners, following a successful takeover of Extract Resources. CGNPC’s investment in Swakop Uranium marked not only the biggest in Namibia since the country’s independence, but also, significantly, by far the single biggest investment by China in Africa to date.

While the Erongo region contains many mines

similar to Husab, with its high grade of uranium hosted in a type of granites called alaskites, it is set apart by its being the largest and highest grade uranium-only deposit in Namibia. The mineralisation stretches along approximately 8km, and when fully operational this project is anticipated to produce some 7000t of uranium each year, placing it behind only the MacArthur River mine in Canada in production terms.

Husab is to be developed as an open-pit mining operation using a conventional truck and shovel method, and will require loading and hauling equipment on a huge scale for its mining to be carried out. As well as the drill rigs which will be used to create the pits for mining, excavation will be carried out using diesel and electric shovels, alongside a vast range of other equipment

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company profile to include excavators, rock breakers and dozers.

Once extracted from the mine, the ore will then be fed to the processing plant, which will produce the high grade uranium, via a conventional acid leach plant designed for a capacity of 15mlbs per year. A complex process, this involves leaching the uranium using sulphuric acid, which should enable approximately 88% of the uranium to be recovered.

A mine residue facility is also to be built at the site, in which the waste rock and tailings will be disposed of, while a programme to optimise and extend the mining resources has already been set in motion, geared toward increasing the mine’s lifespan and improving the processes taking place at Husab.

Heavy Haulage Playing a significant role in achieving these goals at the mine will be the massive Komatsu haul trucks, assembly of which began in August 2013. These trucks each have a payload of 327 tonnes, are in fact delivered to the site in the form of a kit at, and while 26 of these trucks will be received, at a rate

of two per month, during the project phase, in total 39 of them will be operating on the mine when production begins at its nameplate capacity of 15 million pounds of uranium oxide per annum.

As might be expected, merely transporting the first two dump bodies along the 2,250 kilometres from Johannesburg to the site was a major logistical operation. These bodies measure 14.6 metres long, 10.7 metres wide and 5.4 metres high and are the last part of the truck to be fitted, necessitating two cranes to lift them. Komatsu’s Gerhard Klopper said of the undertaking: “Every step of the journey had to be carefully measured and investigated before the 50-tonne load could be granted permission to travel. Even then, strict conditions were applied and the vehicles needed to be accompanied by at least two escorts from the transportation company Transcor, as well as two South African road authorities.”

Construction of the Husab mine is reported to be progressing extremely well, with the majority of the main contracts having been awarded and both bulk earthworks and construction of the

100

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Swakop Uranium

Marsh leads the Pan African pack Three years on from the Alexander Forbes Risk Services acquisition, Marsh Africa’s strong capabilities servicing the African continent have seen our growth ambitions as a pan-African leader come to fruition.

“They say it’s the journey, not the destination that matters and our journey over the past three years has seen the business flourish to exceed expectations,” says Debbie Geraghty who heads up Mining, Metals and Minerals at Marsh Africa. Marsh has the strongest mining practice in the industry, with over 200 risk and insurance colleagues specializing in mining, metals and minerals, with more than 10% of that expertise based in Africa.

Geraghty goes on to say that the South African market had a good year in 2013 for mining risks, with more Insurers now willing to write mining business due to the higher rates than non-mining business.

“While traditionally, asset rates for mines have been maintained, even in a soft market, the ample capacity available in the international markets is forcing the price down and we are seeing insurers providing higher limits at the same price in order to keep their revenue,” she says.

Mining companies are facing greater challenges as they are progressively moving into more remote areas as they expand into geographies with regulatory regimes that are changing and can vary widely from one country to the next. This challenge not only requires that companies take a more strategic and customized approach to risk transfer, but also brings to light the need to deliver local expertise wherever our clients do business.

“We’re in a fortunate position as the strength of our business and the way we work makes it easy to attract the best talent in the industry. Since the acquisition, we have had an excellent retention rate for existing clients and in 2013 we had our best year ever for new business,” she says.

Marsh provides risk and insurance advisory & placement services to 87% of the Fortune Global 500 companies and the majority of the world’s major mining operations. This global expertise along with our ability to deliver economies of scale and international best practice ensure the delivery of consistent quality solutions to our clients.

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Marsh is the pre-eminent provider of Mining Sector business to the international insurance and reinsurance market. Our client base ranges from small single site operations to some of the world’s leading multi-national corporations and covers virtually every form of mining in all corners of the world. This diversity gives our highly experienced team a broad based knowledge of the exposures and requirements of clients within this very specific and challenging sector.

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SEP 14 PAGE 67

company profile

permanent road and bridge to the mine site well under way. Namibia’s state energy supply company, Nampower, has approved a guaranteed power supply of 50 MW for the mine, while the first water at the site was delivered near two years ago via a temporary pipeline from the Rössing reservoir, feeding into a newly-built pond on the Husab mine. Permanent water will be supplied either by a newly built desalination plant near Swakopmund, or from the existing large-scale plant built by Areva, constructed to supply all the water to its own Trekkopje mine.

This was the first seawater desalination plant to be constructed in southern Africa, located 30 km north of Swakopmund at Wlotzkasbaken, a site about 40 km further into the desert, with the plant eliminating the need to pump water from the aquifers and thus helping significantly to preserve the country’s groundwater reserves.

Furthering the significant progress underway at the mine, the end of 2014 brought an important development in Swakop’s work, seeing the company sign an agreement with Metal and Allied Workers Union of Namibia, with the purpose of ensuring the health and

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safety of employees and contract workers. This also comprised plans to intensify safety efforts and minimise the negative impact mining activities have on the environment, outlining the principles and procedures which will govern the relationship between Swakop Uranium, the contractors, MANWU and its members in relation to health, safety and environment at the mine site.

Zh e n g Ke pi n g , c h i e f e x e c ut i v e offi c e r of Sw a k op U ra n i um , w a s k e e n t o c l a ri fy h ow t h e ag re e m e n t w i l l e n s ure t h a t a l l s t a k e h ol de rs are c om m i t t e d t o obs e rv i n g ri s k a s s e s s m e n t , sta n da rd ope ra t i n g proc e dure s a n d re l e v a n t le g i s l a t i on t o e n s ure t h a t a l l pot e n t i a l inc i de n t s , a re ful l y pre v e n t e d, a n d re port e d whe n t h e y oc c ur: “ We a l l h a v e a m ut ua l int e re s t i n t h e oc c upa t i on a l s a fe t y a n d h e a l t h of e m pl oye e s a n d t h e prot e c t i on of t h e e nv i ron m e n t a n d t h us un de rt a k e t o c oope ra t e in a n e ffort t o e l i m i n a t e oc c upa t i on a l H S E ha z a rds a n d c on duc t a l l ope ra t i on s w i t h due c on s i de ra t i on for t h e prot e c t i on of t h e e nv i ron m e n t . A l l c om pa n i e s c on t ra c t e d by Sw a k op U ra n i um s h a l l c om pl y w i t h pol i c i e s

Swakop Uranium

a n d p ro ced u res an d applicable le g islation and p r omo te co mmitment and te amwork to e nsure z e r o harm to w o rke rs and prote ction of the e n v i ro n men t.”

O peratin g to s u ch a strict and tig htly p l a n ned s ch ed u le as that adopte d by Swakop m e a ns that the p lant is sche dule d to be f u l l y an d s u s tainab ly ope rational in 2 0 1 6 . A c e r e mo n y in May la st ye ar, atte nde d by v arious d i g n itaries in clu d ing Namibian pre side nt H i f i k ep u ny e Po hamba, China’s ambassador t o Namib ia Xin Shun Kang , and CGN c h a i rman H o Yu , marke d the official start of m i n ing o p eratio ns at the Husab proje ct. To c om m emo rate s u ch a sig nificant landmark, the f i r s t h eavy -d u ty mining e quipme nt at Husab w a s started u p , an d acte d as a pre cursor to t h e e xtractio n o f the me asure d and indicate d u r a n iu m res erves o f about 1 4 0 ,0 0 0 tonne s. The m i n e its elf w ill co mprise two pits: the Z one 1 p i t will b e s o me 3k m long , 1 km wide and 4 1 2 m d e e p , w hile th e Zo ne 2 pit will be 2 km in l e n gth , 1. 3 km w id e and 3 7 7 m de e p.

With the min e d ue to start uranium p r od u ctio n early in 2 0 1 6 , commissioning of

t h e s i t e ’s proc e s s i n g pl a n t i s e x pe c t e d t o t a k e pl a c e l a t e r t h i s ye a r, w h i l e t h e m i n e re c e n t l y a l s o a c qui re d t h e bi g g e s t c rus h i n g pl a n t i n S out h e rn A fri c a . H us a b e x pe c t s t o m ov e 1 5 0 m i l l i on t on n e s of roc k pe r a n n um a n d 1 5 m i l l i on t on n e s of proc e s s e d ore a n n ua l l y, a s D e on G a rbe rs , s e n i or v i c e -pre s i de n t of ope ra t i on s , a dde d, “ T h e m i n e ’s l i fe -s pa n i s 2 0 ye a rs pl us . N e w de pos i t s h a v e a l re a dy be e n di s c ov e re d a s w e l l w h i c h w i l l e x pa n d t h e l i fe s pa n of t h e m i n e furt h e r.”

T h i s ye a r a l on e , S w a k op U ra n i um w i l l s pe n d m ore t h a n N $ 1 ,5 m i l l i on on proje c t s l i n k e d t o s oc i a l re s pon s i bi l i t y, w i t h t h e a i m of be n e fi t t i n g pre v i ous l y di s a dv a n t a g e d c om m un i t i e s , a l on g s i de w h i c h s e v e ra l h un dre d N a m i bi a n a rt i s a n s a n d ope ra t ors a re c urre n t l y re c e i v i n g t h e re l e v a n t t ra i n i n g t o a l l ow t h e m t o joi n H us a b m i n e ’s pe rm a n e n t s t a ff a s m i n i n g proc e s s i n g ope ra t ors . H us a b m i n e h a s re c e n t l y i n t roduc e d a H i g h Pe rform a n c e Cul t ure prog ra m m e for a l l i t s e m pl oye e s , i n orde r t o s t re n g t h e n t h e i r w ork pe rform a n c e a n d i n t roduc e s t a n da rds t o c om pe t e w i t h t h e v e ry be s t i n t h e w orl d

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company profile

A proud legacy Editorial: Rebecca Bingley

The very first De Keur farm was first purchased at a public auction over 80 years ago by founder, Tippie du Toit, for £9,600.

Today, family and quality still remains vitally important for this fresh produce agricultural company - “We are proud of our history, our heritage, and the ‘De Keur family”, Danell du Toit, Managing Director, tells IndustrySA.

With strong family ties and a long ancestral history, the De Keur Group was originally founded back in 1934 by Tippie du Toit, who acquired the ‘De Keur’ farm in the Koue Bokkeveld region for £9,600 at a public auction.

The ethos which was established all those years ago – good farming practices, a respect for all living things and embracing honesty, fairness and dignity to all men – still remains today, three generations on.

The De Keur Group currently maintains three separate businesses underneath it; De Keur Estates, which produces a wide range of fresh fruit and vegetables, De Keur Packaging, which includes the fruit and vegetable state of the art packing facilities and atMarket, the newest company solely responsible for the marketing of De Keur’s fresh produce range.

Based in Ceres in the Western Cape, the family agricultural

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business is still very much run by the family, as Danell du Toit, grand-daughter to founder Tippie, explains: “Brothers, Charl and Gys du Toit joined their father, Tippie, on the farm in 1967 and 1972 respectively, and together they formed a formidable team in the agriculture industry.

“Currently, there are four of Charl’s children and Gys’ son working in the organisation. Charl Snr and Gys handed over the reins to the younger generation in 2014. Charl Snr remains connected to the business in an advisory and mentor capacity, but sadly for the family and the organisation, his brother Gys recently passed away in early April of this year.”

STATE OF THE ART FACILITY Developing its product lines over the years, De Keur deals with a variety of fruit and vegetables, including pears, apples, nectarines, butternut squashes and onions. In 2001, the company

De Keur

purchased its fruit packing facility in Ceres, which has not only helped to extend De Keur’s presence across the supply chain but means all its produce can be packaged here with the offer open to other local producers too. Operational all year round, the facility allows De Keur to have more control over the packing and quality standards of its fruit, enabling it to provide for the exact needs and requirements of its customers.

The state of the art facility both grades, packs and handles the fruit that passes through it. The CA Complex, built in 2007 allows the company to store up to 14,000 bins over a much longer time frame, helping to ensure continuous supply of their products to customers.

Du Toit explains that De Keur is continuously updating and implementing new technologies

throughout the company and its facilities, in an attempt to improve the manual processes and ensure they are less time consuming and more cost efficient.

“We are continuously implementing new technologies and/or production methods to improve on our existing quality and quantity of produce. In the last few years we have successfully trialled direct drilling of onion seeds and will expand this trial to more hectares in the next year.

We have also started to mechanically harvest onions for certain markets, which decreases our labour costs for onion harvesting immensely.

“We have already had great success with the high density fruit orchards that we’ve been planting in the last few years, with the trees producing earlier in their lifespan, as well as an increased production

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company profile

per hectare.”

Du Toit also reveals the company’s plans to introduce a new MAF RODA apple packing machine in the fruit pack house by the end of this year.

“The MAF RODA packing machine will have the very latest technology for apple sorting by weight, colour and external quality. This decision was made to ensure adequate packing facilities for our own production expansion plans, but more importantly to incorporate the latest technology in order to optimise our packing process and ensure the best possible quality.”

A SHIFT IN THE MARKET It is this renewal and implementation of such innovative technology which helps to place De Keur in such a prominent position within the agricultural industry. With the fresh produce market starting to veer away from more traditional markets, including the UK and Europe, business is starting to move towards the Far East and into Africa. A beneficial move for De Keur, competition within the region will inevitably rise too.

“The Russian embargo on European fruit has also seen many European producers entering Africa

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as an alternative market, which has increased the competition in this market remarkably,” explains du Toit.

“Competition changes continuously in the fresh produce industry. Firstly from a production perception, access to new varietal strains is crucial in order to provide the commercial producer with a competitive edge. We continue to maintain a successful reputation with our clients, since we absolutely believe there is no substitute for quality.

“From a consumer perspective, there is in certain markets, like Europe, definitely a more discerning and environmentally concerned buyer. In order to satisfy this buyer, it is important to produce according to sustainable farming practices and to ensure that the company contributes in a socially responsible manner with the communities in which we operate.

With the market now beginning to shift more in favour of African agriculture, does Continental Africa still hold the potential as its biggest growth market over the coming years?

“Yes, this is definitely still the case, although this growth is slightly dampened by the unrest in the Horn of Africa,” explains du Toit. “We are continually looking at expanding our footprint in

De Keur

A part of the global Gerber Goldschmidt Group and serving solutions to the fresh produce industry for over 23 years, we at Gerber Fresh are experts in the pack house industry. Started in 1993, we are a division of the Gerber Goldschmidt Group (SA) (Pty) Ltd - a multi-faceted private equity investment company headquartered in Johannesburg.

The operations of our company stand firmly on the pillars of: Productivity, Innovation, Aesthetics, Cost Saving and Service Excellence.

With a head office in Midrand, a branch office in Cape Town and technical support nationally, we are in the unique situation of having to communicate with both grower/packer and retail corporates.

We support the largest to the smallest supplier with the same level of excellent service.

In order to fully service our customer’s needs, we cater for the whole post-harvest pack house process - from automated bin dumpers, to sizers & graders, computerised weighers, net and poly baggers, robotics for palletising and final wrapping & strapping.

We are involved specifically with post-harvest fruit and vegetables, supplying solutions with machinery, netting, wrapping mediums & labels. We are also specifically focused on pre-packs, 1 to 3 Kg and offer a range of solutions including shrink wrap, flow wrap, stretch wrap, netting & polybags. Our Fresh Prep division supplies a range of equipment, which compliments fresh produce through processing, slicing dicing etc., Vacuum packing, Juicing, Top Sealing etc.

Our principals are the best in their particular disciplines and are always on hand to give us support, technically and commercially. Our technicians, who are factory trained, are known for their expert service. Our key objective is always service excellence. We understand the pressures of a packer and are there to assist the all the way.

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company profile

the African continent, since we still believe that agribusinesses should find substantial markets for their products as Africa has a vast consumer base with a rising middle class.”

ATMARKET (PTY) LTD When IndustrySA last spoke with De Keur back in November 2013, Charl du Toit (Jnr) explained the company was in the process of forming a new company of the De Keur Group, atMarket (Pty) Ltd. Incorporated in December 2013, it has gone from strength to strength, helping the existing business along the value chain by exporting and marketing all of the company’s fresh produce directly to its clients located all over the world.

“By having an in-house marketing and export capability, we are able to provide our customers directly with the quality produce that they require, when they expect it,” explains Danell du Toit.

“Additionally, it also provides us with invaluable information with regards to market trends, customer needs and changes in market dynamics.

“We believe the changing nature of consumer demands and demographics means that future

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“The MAF RODA packing machine will have the very latest technology for apple sorting by weight, colour and external quality”

De Keur

agricultural production will be determined by that demand, rather than by production or the producer, as it has been in the past. Therefore it is paramount that we gather this market information early in order to make the necessary changes from a production and packing perspective to continue serving these markets more effectively in the years to come.”

With so many positive changes implemented since we last spoke with De Keur 18 months ago, it seems as though this family run company has maintained its position on the agriculture pedestal in South Africa. So, what does the future hold now?

“Growth, growth and growth,” explains du Toit. “We believe that we continuously seek to improve our quality and quantity of our produce by implementing the latest technology right through our value chain. We constantly look for opportunities within the market to increase our footprint in the agricultural industry.”

STRONG FAMILY TIES Family is evidently extremely important and has contributed a lot to the success and continued

growth of this company since its inception over eight decades ago.

“We have an amazingly motivated and talented team that is willing to take the necessary steps in order to shift the De Keur Group to the next level.

“I also credit a lot of our success to the many people who have led and worked within the business since our inception in 1934. They have provided the current generation with a successful and established organisation and a very strong brand.”

“I think a special mention of our grandfather, Tippie Du Toit and after him my father, Charl and uncle, Gys. They have always managed the business with the highest integrity and respect for people, always believed in trusted relationships with suppliers and clients, and they are known for treasuring their relationships with all of their employees.”

“We are proud of our history, our heritage, and the ‘De Keur family’. My dream is to continue this fantastic legacy to ensure a bright future for the De Keur Group,” concludes du Toit

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company profile

Paving the way to success Editorial: Rebecca Bingley

The Haw & Inglis Group, based in Cape Town, has long established itself as one of the leading and independent construction specialists operating across Southern Africa.

Over the last three decades, it has focused on road construction and rehabilitation, civil engineering infrastructure with a range of more specialised areas including geotechnical contracting and aggregate supply.

Established in the Western Cape, with its headquarters in Cape Town, Haw & Inglis’ main business centers on road construction and rehabilitation, infrastructure and building construction.

Founded in 1984, the company boasts a wealth of experience working alongside key companies on major national and provincial arterial roads, busy urban highways and concentrating on building and urban infrastructure including commercial, residential and industrial.

With three main divisions: Haw & Inglis Civil Engineering (Pty) Ltd, Great Karoo Crushing (Pty) Ltd and Haw & Inglis Projects (Pty) Ltd, the company has successfully established a firm position as one of the leading independent contractors operating across South Africa today.

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Adrian Robinson from Haw & Inglis, explains: “As we grew, it became apparent that we had to formalise operations to run the company to its full potential.

“H&I Projects focuses more on building work. Normally construction companies will split operations between civil work and building work and we done that, starting H&I Projects in 2005. Before this, we never entered the building market officially, although we had done some small projects with low cost housing, but H&I Projects now solely work on specific building projects.

“Great Karoo Crushing (GKC) is our plant and crushing department. This was formed in 1999 through a natural split. They look after plant and material and we hire from them for

Haw & Inglis

work on our sites.”

All three subsidiaries help to ensure efficient cost control throughout the Haw & Inglis Group and following two mergers with Peak Projects and Ursa Civils in 2007 and 2012 respectively, the company’s capacity increased further.

Dealing mainly within the private, public and PPP (Public, Private Partnerships), Haw & Inglis Projects subsidiary carries out construction work, varying from smaller industrial complexes to more modern office buildings and residential complexes. With continued support and on hand assistance of architects, quantity surveyors and consulting engineers, Haw & Inglis is able to provide an efficient and reliable turnkey service to clients.

DIVERSIFYING INTO RENEWABLE ENERGY The company’s construction capabilities now covers a wide base and in 2013, Haw & Inglis made the decision to venture into the renewable energy market over the coming years, playing a pivotal role in the construction of wind farms.

“In the future, we hope to work more with the wind farms in the renewable sector,” explains Robinson. “We will handle the roads and the concrete bases that house the turbines. It is hoped that this will take up 20-30% of our capacity in the next few years.”

Through its acquisition of Ursa Civils in December 2012, this will help to ensure Haw & Inglis is fully equipped for the potential challenges venturing into this new energy sector will present.

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company profile Haw & Inglis invested in a number of German machines, at a cost of R12 million to add to its already impressive fleet, back in 2013. Replacing the John Whitford Griffiths WR2400 machines, Robinson explains the manufacturers have a long standing reputation: “We were probably only the second construction company to buy Wirtgen machines and we have been using them for about 15 years. The machines develop every five to ten years, they are always being upgraded but the fundamental idea remains the same.”

FLAGSHIP PROJECTS

BB_quarter page_Industry SA

Budding portfolio of extensive experience in 17 April 2015a01:29:39 PM this field, this was a strategic move, as Robinson explains: “In the renewable energy sector, we acquired a company called Ursa Civils. They are the only company that built bases for the wind towers at Coega in Port Elizabeth. We acquired the company with the vision of expanding our contracts with renewables and also water and sewerage work.

We feel that there will be many opportunities in this sector.

“They have worked in the Eastern and Western Cape and are currently working in the Northern Cape so they have a broad knowledge of the industry,” Robinson explains.

With imminent plans to pursue projects such as these, Robinson highlights the need of construction work at these wind farm locations: “The farms that we will be involved with will have a number of turbines, ranging from 10 to 47 so there are huge requirements for concrete work on these wind farms.”

To ensure its work maintains the high standard and quality it has developed such a reputation for,

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Looking back over its three decades in operation, Haw & Inglis has been involved in some of the country’s most important and essential construction projects.

Work first began on Chapman’s Peak Drive in 1915, in an era where Environmental Impact Assessments were not required, the 11km of road took a total of four years to complete. The stretch of road however, has paved a hazardous history with numerous landslides and in May 1980, part of the road was washed away during torrential weather conditions. At such an expense to maintain, it was decided in 2000 to switch the responsibility to road users rather than the taxpayer and a toll was introduced at the end of 2003 to those who travel the road.

Numerous updates and construction works have been implemented on Chapman’s Peak Drive since the first foundations were laid almost a century ago and over an 8-month period in 2008, Haw & Inglis was involved in the road rehabilitation and new toll plaza building development for its client, Entilini Concession (Pty) Ltd. This included an upgrade to the rockfall protection installations, construction of 2500n 3 gabion walls, a new gabion rockfall dam and shotcrete and mesh treatment of the many unstable areas surrounding Chapman’s Peak Drive – all in time for the road to reopen in 2009.

Haw & Inglis has been involved in numerous large projects and while it initially stuck to more geographical locations in the Cape, it has since ventured onto and seen success in Northern Kwa Zulu Natal and Southern Free State areas.

Throughout its first two decades, Haw & Inglis completed an estimated 23 million square meters of surfacing, securing 2,300 km of surfaced roads and urban developments under its belt, this helped

Haw & Inglis

to cement its ever competitive position in the road construction industry across Southern Africa.

A number of other key projects Haw & Inglis has been involved in over the years include the Clifton Terraces located in Cape Town – a complex multi-level residential block, the tenstorey building underwent a range of complex geotechnical work followed by building structure construction work, all to the company’s reputable high standards.

Haw & Inglis was also involved in Cape Town’s first 5-star green rated office building, the New Bloemhof Electricity Services Head Office Building, which was constructed to both ISP 9001 and 14001 standards. Staying on the green and renewable path, Haw & Inglis played an active role in the update of the Scottsdene taxi rank – now one of South Africa’s first certified Green star rated taxi ranks - it features a solar power generation and a recycled water system.

With such an impressive reputation and project list behind it, there is no doubt that Haw & Inglis will continue to cement its position as a true industry leader throughout Southern Africa and neighbouring countries, paving the way for a very successful future

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company profile

Lighting up the entertainment industry Editorial: Harriet Pattison

With its roots first planted back in 1991, Gearhouse SA has made a truly successful name for itself in the world of stage technical equipment and entertainment. With Managing Director, Ofer Lapid, at the helm, his drive, passion and knowledge has helped to position this company as the go-to technical supplier across South Africa.

Gearhouse SA has an irrefutable reputation in South Africa as the leading technical supplier to the live events and entertainment industry – a title that remains deservedly so, offering its clients the widest range of services, all under one roof. With offices in Cape Town, Johannesburg and Durban, Gearhouse has built an impressive repertoire of equipment and experience which now exceeds any other event technical supplier across South Africa.

It is this well rounded range of services which places Gearhouse SA in such a competitive position within the industry as a turnkey provider. Clients benefit from its technical expertise with individual specialists in different fields, all from one single contact.

Gearhouse SA’s roots were first planted in 1991 with a much smaller Johannesburg-based business, Lighting Unlimited, founded by Ofer Lapid, now Founder and joint Managing Director of Gearhouse SA. “The original goal and objectives were to bring the technical service industry in line with the international standards, in South Africa by South Africans,” explains Lapid.

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Lighting Unlimited was then acquired by Gearhouse PLC, the UK based company, in 1996. With operations spread across five continents, this small company has now turned into an industry leading technical solutions provider, following a management buy-out in 2001 which helped to secure the South African division of the company.

In February this year, Gearhouse SA erected two new dome venues in Johannesburg, one on Krugersdorp hill which forms part of Tsogo Sun’s Silverstar Casino located in Muldersdrift and a smaller replication erected at Tsogo Sun’s The Ridge Casino Hotels & Entertainment complex situated in Emalahleni, Mpumalanga.

The first was designed and built by Otoo Wijnberger from In2Structures and includes a stage, PA system and a basic lighting rig, ensuring it is a self-sustained venue for when Silverstar hosts smaller shows.

A member of the Gearhouse Group, In2Structures (Pty) Ltd designed and built both dome structures. The SupaDome, located at Silverstar, measures 71m x 35m with a height of 17m while the Maxi Dome, located at The Ridge site, measures 49m x 28m and stands 13m tall.

Both dome structures have been designed and erected

Gearhouse SA

with strict safety measures and the intention to withstand large imposed loads such as suspended equipment and wind pressures.

The ease of rigging also means these domes provide a multipurpose venue solution for a variety of entertainment events and shows.

GREEN INITIATIVES Maintaining sustainable and green initiatives throughout the company, Gearhouse SA has implemented several step by step processes. Even smaller differences including recycling batteries, generator oil and consumables have been employed to make a significant change and ensure a sustainable influence.

In an additional attempt to maintain this sustainable approach, the company strategically streamlines its equipment and services, helping to achieve its full potential.

In many of the company’s services, these green approaches have already been implemented and tested.

Substitute LED technology for lighting is being used, drastically reducing its power outlay whilst achieving the same lighting intensity.

In its trussing sector, Gearhouse SA has tried to reduce its transport requirements by using folding truss, helping to save on average four meters of truck space per load.

Looking at its audio visual, Gearhouse SA has worked to produce effective and stand out digital signage and LCD screens rather than printed paper banners, ensuring they produce much more of an impact statement and of course, it is a much more environmentally friendly option. Paper and printing is often where companies fall short of maintaining a sustainable approach, but Gearhouse SA uses digital consoles to help reduce the amount of paperwork it produces.

Its use of a new generation switch-mode amplifiers also delivers four times the power at the same consumption.

MAINTAINING A COMPETITIVE ADVANTAGE Held at The Forum, Bryanston on 26th November last year, Gearhouse SA was the proud recipient, for the 4th consecutive year, of the Best AV Supplier Award at the EXSA (Exhibition and Event Association of Southern Africa) Awards. “Our competitive advantage lies in the fact that we

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company profile provide a turnkey technical solution with specialists in each field and are unique in having the widest range of services currently available in SA,” explains Lapid.

“And because we are used to working together, the individual technical production aspects fit together smoothly under the co-ordination of our project managers.

“This means our clients get the benefit of a single contact access to the whole range of services, technical expertise as well as the advantage of a globally negotiated price.”

Gearhouse SA is also the sole South African representative of the AV Alliance – an international network of similar companies which are all committed to faultless service and quality to the highest standards, the company assists with audio, structures, daylight screens and power, to name but a few.

PASSIONATE SERVICE From the offset, when Lapid first founded Lighting Unlimited over 25 years ago, it was his passion, integrity and industry experience which helped to give Gearhouse SA the success and reputation it has today.

“My own passion lies not only in creating a future for lighting, studio and AV technicians, stage and set builders and the rest but also to find a way of educating people towards both greater knowledge and greater recognition,” Lapid explains.

“We have a hard earned reputation for technical service excellence and creative distinction, and a stringent system of client service checks for every event. Delivering a consistent and thoroughly professional service is key to our success.

“We are the industry leaders in southern Africa and the largest by far. But there are plenty of smaller competitors and we are doing our best to stay a step ahead.”

It is clear that happiness of the client is of prime importance to this company, ensuring that its services match their expectations, both during the job and maintaining an after sales relationship too.

“In our industry after sales means maintaining an excellent relationship with your client. A good gig for us is when our client standing next to us is happy with the way everything went, places his trust in us and Gearhouse becomes the ‘go-to’ for all things technical going forward,” Lapin explains.

“Music makes people happy. In sport you have an audience that is supporting two opposing sides, but at a music event the people are united in their support of the band.

“Everyone is equal regardless of colour, age or gender,

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and most of the time it is a happy gathering. And that makes me happy.”

GEARHOUSE KENTSE MPAHLWA ACADEMY Alongside the care and consideration it takes with its clients, Gearhouse SA is also the proud organiser of its very own annual training program held across three different locations, Cape Town, Johannesburg and Durban. A free program, the academy aims to teach theoretical and practical approaches to students including; audio visual, lighting, power and sound and structures.

Introducing up to 30 Gearhouse Kentse Mpahlwa Academy graduates into the industry every year, the course works to produce industry-ready entrants which is a requirement for the Technical Production Services industry.

“The Gearhouse Group has an extremely proactive training and development policy, with a high priority placed on ongoing training and skills development to keep personnel abreast of all the latest technological advancements,” explains Lapid.

Continually meeting high expectations and aiming to provide a flawless service to its clients, it’s no wonder Gearhouse SA maintain such an industry leading position within the technical entertainment industry.

On this occasion, it certainly seems that the contagious passion and integrity of this company and of its founder, Ofer Lapid, rightly places it amongst the world leaders working within the industry.

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company profile

Enjoying the fruits of its labour Editorial: Harriet Pattison

Now standing as the fourth largest exporter of citrus in South Africa and the eighth largest company within the export industry, it may come as a surprise that Lona Citrus has only been in the industry for less than a decade, but has already added zestful influence and support to the rural farming communities working and growing within the Eastern Cape…

With a noteworthy and entrepreneurial history, Lona Citrus was started almost a decade ago in 1996 by Spencer Johnson, using only his father’s garage as his very first office base. Financed with a loan of just R30,000 from his already fruit-farming Uncle, Johnson was acutely aware of the discontent amongst local farmers surrounding the current state of the industry and how business was being done, so he decided to start his very own marketing company.

Over the next five years, with Johnson at the helm of the company, it focused its efforts on vegetables, a variety of exotic fruits, wine, dried fruit and tea, but in 2004 a decision was made to concentrate solely on the growing citrus fruit market.

“At this point citrus was doing very well and

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covered 70% of the commodities being traded,” explains General Manager, Irving Davelaar.

“Obviously, domestically, it is geographically well spread so it limits risk when it comes to natural disasters, macro-economic impacts, pests and diseases, and fruit flies etc. Also, from an international marketing point of view, the market is huge. It spreads from Canada right across to Japan and this is why the company decided to divest from everything else we were doing and focus more on citrus. From then on we became a citrus export specialist.

“As export volumes increased, Spencer recruited a few more people to manage logistics, marketing, procurement and other functions across all the commodity groups.”

And just a few years later, in 2005, Lona Citrus

Lona Citrus

made the decision to integrate into primary agriculture and invested in its very first farm. This move not only helped the company economically but in a business sense too, providing it with a more reputable stance with much larger and international retailers.

“We invested in our first farm and this gave us further credibility with the likes of retailers such as Tesco, Sainsbury’s and Marks & Spencer. This gave the company a sustainable advantage too as it was now seen as a grower and exporter/trader supplying to some of the largest retailers in the world.

“We have since invested in a couple more farms, to secure the sourcing of the fruit and gain more control of the supply chain. We are involved in all areas, from the farm all the way to export. Inbetween that we help farmers develop; we finance

them, we aggregate their fruit and then we export it. This has given the company solid ground to stand on,” explains Davelaar.

It is this support and reliability which Lona Citrus has continued to build on, helping to establish itself as a dependable citrus export specialist.

INCREASING THE CARTON COUNT Lona Citrus is certainly not averse to aiding the social and economic development of rural farming within the country either, recently joining forces with Riverside Enterprises. An established citrus farming, packaging and marketing company in the Eastern Cape, there are more than 20 citrus farmers now receiving export support due to the help and support of this joint venture.

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company profile

“An increase from 70,000 cartons in 2012 to 180,000 cartons in 2013. Exceptional achievements, considering some of these farms were not even producing just a couple of years ago” “Lona has played a big role over the last nine or ten years in mentoring these farmers. Assisting and facilitating these farmers in the process to obtain the relevant knowledge such as what fertilisers to use, when to use them, how to plant trees, how to manage admin and finance etc.

“The main areas that farmers need support with is admin and finance. There is often a lack of paperwork, audit trails and the knowledge of financial management.

It’s very admin intensive on our side and it’s important to act in an advisory capacity and not boss people around.

It’s a challenge but it can be very interesting and it’s amazing, the feeling you get when you’ve been working at it for a couple of years and you see the improvement on the farms because of your input.”

With numerous initiatives in place, both Lona Trading and Riverside Enterprises have already helped eight

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emerging farmers in the Alice Kat citrus development program to receive their respective title deeds, thereby finally owning the land in which they farm.

The joint venture aims to provide support and services to the grower base, helping to facilitate access to markets, offering training and technical support, providing administrative support and encouraging compliance with accreditation systems including Fairtrade, Tesco Nature’s Choice and GlobalGAP. Responsible for the marketing and logistics of emerging farmers and their citrus crop, Lona Trading hopes to achieve an increase in the number of cartons that are exported from these farms to 300,000 a year.

This increase carries added benefits - bringing in a Fairtrade social premium in excess of R1.5 million in its first year alone.

A prime example of where this venture has made a notable impact is the Mabunda farm in Letsitele. With an estimated 200 hectares of citrus and 95 hectares of mango plantings, Lona Trading exported the majority of the farm’s citrus crop in the last two seasons, receiving a Fairtrade and GlobalGAP accreditation in 2008. The fruit from the Mabunda farm is now exported to over 40 different countries and as a result of a new operating model, production on the farm has quadrupled, leaving a significant and positive impact on both employment and revenue.

EASTERN CAPE DEVELOPMENT Even as a one man band, Lona Citrus plays an invaluable part in turning the lives of many farmers around, dramatically increasing their exports by

Lona Citrus

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company profile

more than double in numerous cases.

“We have seen massive changes, sometimes in just a short amount of time,” Davelaar explains.

“For example, there is a farm in north that we got involved with. In the beginning they were exporting around 20,000 cartons of citrus. In 2010, they did around 450,000 cartons. This improvement was over just four years.

“And in the Eastern Cape, we’ve seen the same thing,” says Davelaar. “We partner with a group of farmers, the Landbank and the IDC where we do all of the ground work to get these growers up and running and this year for the first time they broke the 100,000 carton mark. An increase from 70,000 cartons in 2012 to 180,000 cartons in 2013.

Exceptional achievements, considering some of these farms were not even producing just a couple of years ago.”

The Industrial Development Corporation (IDC) is also doing its bit to help reconfigure the rural farming industry within South Africa, especially in the Eastern Cape where unemployment continues to be rife. At its full production established in 2011, the farms generated an estimated R61.5 million in annual foreign exchange earnings.

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Financing is essential for the rehabilitation of these rural farms, helping to fund the farmers’ land acquisitions from the Department of Land Affairs and re-plant over 300 hectares of citrus orchards.

Riverside Enterprises has also been involved in the project, administering loans, providing marketing and an integrated service from primary production, through to packaging, marketing, logistics and administration. The company initially began providing this support back in 2000 following the wave of poor fruit quality coming from these farms in the Eastern Cape. In fact it was this continued support from Riverside Enterprises and the positive response from other farmers looking for the same professional assistance that led IDC to get involved too.

Geoffrey Qhena, CEO of IDC explains: “These farms were developed on state land under the Ciskei government and limited farming experience and working capital has left them debilitated. The investment and association with Riverside boosts the fruit quality; ensures a marketing avenue and instils new hope for these farmers.”

Rehabilitation programs such as these can influence a ripple effect of benefits, initially

Lona Citrus

helping to improve yields and fruit quality and leading to an increase in fruit volumes and orchard acreage. More employment opportunities will arise as a result with a promise of development within the rural farming sector and so creating a better vision and spirit for these communities.

FOURTH LARGEST EXPORTER With such impressive growth and industry influence over the last ten years, Lona Citrus has made an assuredly positive impact on the rural farming industry in Southern Africa and a difference to so many farmers who struggled for so long in much harsher market conditions.

Irrefutably one of the largest and most influential citrus exporters within the industry today, the future looks to continue much the same way if Lona Citrus continues to place as much importance on the customer as it has done in recent years.

“If we look at the market, we are the fourth largest exporter, when it comes to citrus, in South Africa and we are the eighth largest company in the export industry and that’s all commodities included. Lona remains privately owned and is

one of the largest citrus exporters in the industry,” explains Davelaar.

“We fight to get the best returns for our producers and we fight to keep our customers happy. There is a fine balance between the two.

We see the producers as one of us and we place huge importance on the customer because if you have no home for the product you have nothing.

“We manage to consistently find a balance between the two and that is one of our key success factors,” Davelaar concludes

.

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company profile

A revenue milestone Editorial: Ajuanne Payne

In this months edition of IndustrySA, we were keen to look at one of South Africa’s most iconic companies – the mobility giant that is Imperial Holdings.

The continued success story of the local, turned international company is one of a company consistently leading the pack and with 52,000 employees and revenues of over R100 billion in 2014, Imperial Holdings continues to build on over 60 years of experience, leading the industry sector both locally and across the continent.

From humble beginnings in 1948 as a single motor dealership grew Imperial Holdings – the diversified industrial services and retail group that is the leading third-party logistics provider in Southern Africa.

The group’s activities span logistics, vehicle distribution and retail, car rental, parts and industrial products distribution and financial services, with five dedicated business segments that handle these different areas of operation.

In order to streamline their operations and ensure continued growth and entrepreneurship across the companies, each business segment is autonomously managed and encouraged to operate almost independently, while retaining the considerable benefits of being one cog in the much larger Imperial Holdings machine.

PAGE 90

THE CURRENT MARKET Imperial Holdings has performed well over the past year, despite certain pressures on the South African market. Evidently on the whole over the past few decades the country’s economy has seen significant progress; however it is currently dealing with some difficult external factors.

Some of the pressures on commerce and industry in South Africa at the moment include slower economic growth, volatile currency issues, a large amount of consumer debt, high unemployment and electricity shortages. Due in part to these hurdles, the progress of businesses and foreign investment in the country has been impeded to a certain extent this year and last.

Over two thirds of Imperial’s revenues and profits were generated in this somewhat uncertain

Imperial Holdings

environment during 2014.

With significant socio-economic change also expected throughout the Southern African region over the next decade the company will need to adapt itself correspondingly, both locally and crossborder, to ensure they are ideally positioned to experience continued growth.

The National Development Plan (NDP) was implemented in February 2013 with the main aims of eliminating poverty and reducing inequality in South Africa by 2030. It ‘defines a desired destination and identifies the role different sectors of society need to play in reaching that goal’ and is the government plan dedicated to growing the local economy – laying the foundations for further improving the lives of locals across all sections of society.

Mark Lamberti, CEO of Imperial Holdings, commented further on the company’s dedication to the NDP in the years to come: “Imperial is committed firstly to aligning its strategies and plans in support of relevant NDP initiatives, and secondly to working directly with government and indirectly through business associations, in pursuit of the growth and development objectives of the NDP. “Debates about whether or not growth will create jobs in the short term, cannot divert us from the primacy of growth as the foundation of long term progress for every citizen.”

Not only is Imperial Holdings committed to the NDP out of a dedication to the betterment of the country where it has its roots, but also because, for a company of this size, positive change in the

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company profile the first time, the second record operating profits, the third record revenue and operating profit from four of the group’s five divisions.”

The financial results were indeed a significant milestone for Imperial Holdings and further evidence of its resilience and adaptability within the mobility industry.

At the divisional level, with continued growth and record profits recorded across four of the five segments, Imperial Holdings is really outperforming itself.

The group’s Logistics Africa division saw a 38% growth in operating profit to R1.3 billion and the Logistics International division grew by 5% to R1 billion. In the Vehicle, Rental and Aftermarket Parts division, operating profit grew by 16% to R1.6 billion and the Financial Services division saw its profits growing by 14% to R1.1 billion.

A BLUEPRINT FOR SUCCESS

economy as a whole will very quickly and directly affect its profitability. Conversely, and perhaps most importantly, the group is of a size to have real influence and drive change.

A REVENUE MILESTONE The group has consistently displayed year-on-year growth over the past decade – and 2014 was no different.

Imperial Holdings reported an increase of 12% in revenues to R103.567 billion from R92.382 billion in 2013. Record profit of R6.185 billion was also achieved, with 27% of that coming from the group’s operations outside of South Africa.

Lamberti commented further on the success, explaining that: “Despite a tightening of economic conditions in the second half, there were three laudable features of Imperial Holdings’ financial performance in 2014.

“The first was revenue exceeding R100 billion for

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Imperial Holdings can attribute much of its success to staying true to its roots as a motor dealer and diversifying within its area of expertise.

Not to be confused with a conglomerate operating out of different sectors, the company somehow manages to strike the delicate balance between maintaining its pioneering attitude, while also not straying too far from that which made it the household name it is today – its extensive track record within logistics and vehicle distribution and retail and across the mobility sector as a whole.

Lamberti commented further on this key strategy, explaining that: “As the listed parent of various business units that compete in the marketplace for goods and services, Imperial Holdings must achieve two objectives. It must add value to its business units in excess of the tangible or intangible costs of doing so, and it must add value for shareholders by diversifying in a manner they could not.

“The evolution of Imperial Holdings has proven this to be the case. The development of the group over decades has sought to enhance the scale, competitiveness and performance of existing businesses, while utilising established capabilities to found or acquire businesses in allied markets and lines of trade not easily accessed by the public markets.

“The resources and capabilities that today enable Imperial Holdings subsidiaries to compete and mitigate risk can be traced back to the group’s genesis as a motor dealer. Although our embedded

Imperial Holdings entrepreneurial ethos will cause us always to be vigilant and opportunistic in considering new developments, we intend to tighten our focus on three major lines of mobility: consumer and industrial logistics; vehicle import, distribution, dealerships, retail, rental and aftermarket parts; and vehicle-related financial services.”

In order to ensure the further development of the Imperial group and its leadership in the mobility industry, the company is dedicated to founding, acquiring, merging, integrating and disposing of assets and companies strategically.

There is also significant focus within Imperial Holdings on honing the skills of its executives and staff-members as a whole in order to improve profitability and reduce costs – it is a company that understands the value of investing in its staff.

“While the human capital management of Imperial Holding’s around 52 000 employees is dealt with on a decentralised basis,” explains Lamberti, “the impact of executive capability on the progress of the group demands a broader intradivisional perspective.

“Imperial Holding’s is therefore in the process of implementing practices and processes to identify, select, develop, compensate and retain executive leaders throughout Imperial, whose performance and potential positions them among the top quartile in their field of expertise.

“This talent pool will be viewed as a group resource to be deployed wherever required in the interests of Imperial Holding’s performance and sustainability.”

It is the company’s core strategies and wealth of industry knowledge that secured it such praiseworthy financial results for 2014 and will continue to direct it to bigger and better things in the years to come.

Lamberti explains further that the company always aims to add value, benchmarking its legitimacy “precisely by continuous verification that the value of any subsidiary would be less under different ownership or as an independent entity.

“Simply put, Imperial has no right to be invested in businesses or assets whose long term value is not enhanced by its ownership.”

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company profile

Leaders in accessible finance Editorial: Ajuanne Payne

In 17 short years, Letshego has established itself as a trusted provider in the unsecured loans market across Southern Africa. Letshego has experienced fast rates of growth since inception and has made finance options accessible to individuals previously limited in their choices…

Letshego, founded over 15 years ago, is one of the main frontrunners in the unsecured loan market in Botswana and across Southern Africa.

As opposed to the more traditional assured loans offered by banks and backed by assets, unsecured loans don’t require lending to be backed, relying on assessments of the individual’s ability to make repayments.

These types of loans open up financing options for lower income and MSE consumers who might otherwise not be able to access lending, and as leaders in this market in the region, Letshego is there to lend a helping hand.

Letshego Holdings has subsidiaries in 11 countries across the African continent, with further expansion plans on the horizon. This growth has

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been achieved in just ten short years – the company only began its cross-border operations in 2005.

Letshego CFO, Colm Patterson, says that this success could be attributed to the company spotting a niche in the market where there would be demand for its services. “Set up in 1998, Letshego set out to provide unsecured loans to individuals, because generally at that time the banks only focused on providing secure and corporate loans.

“The company listed on the Botswana Stock Exchange (BSE) in 2002, and from 2005 onwards we started our African expansion and we are now in 11 different countries across southern and eastern Africa.”

The company also offers covers services spanning funeral cover, vehicle finance and executive finance and has plans for expansions into micro-banking,

Letshego

however its core offering is very much focused on providing unsecured loans to individual customers.

“Our core product is the unsecured loan to the individual,” says Patterson, “we give loans up to five years in duration, with the maximum loan size roughly at $35,000. It is consumer finance, we are giving individuals the opportunity to borrow on reasonably straight-forward terms, and our only credit risk is ‘will the individual remain in employment for the duration of the loan?’”

A FRAMEWORK FOR SUCCESS In an industry that is seen as somewhat of a risky business, Letshego has in place a comprehensive strategic framework in order to ensure repayment in an efficient manner.

This is facilitated by working closely with

customers and employers - Patterson explains the model further: “We use a business model known as ‘deduction at source’; what this means is we have an agreement with employers that in order to repay the loan, monthly instalments are deducted directly from an individual’s salary and paid directly back to us,” he explains.

“The deduction at source business model is wellestablished in South Africa, and whilst Letshego was the first to do this in Botswana, we’re not the only company with this arrangement. Other financial service providers now have the same arrangement with employers and government, so it is becoming very competitive.”

The process of deduction at source is an efficient way to avoid issues surrounding late or missed repayments and provides a level of security for a

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company profile

company operating in the unsecured loan market.

Patterson explains that Letshego “has a robust approach when issuing loans. Letshego has built a credible brand and a great reputation through its approach to lending; our internal processes are robust and aimed at ensuring that customers are assisted in a timely and efficient manner thereby avoiding over-commitment of customers.

“Also, if you walk into one of our branches in the morning, there is a good chance you could have approval on a loan that same day. The fact that people know where they stand with Letshego is very important,” says Patterson.

“The reason for people taking out loans vary, it isn’t your typical loan whereby the bank will ask you what you want to use the loan for, we generally don’t really ask, but we have noticed over the years that people use loans for school fees, improvements on properties, vehicles and starting up businesses, but people also use them for things like holidays, so

PAGE 96

it really is quite varied.”

Letshego’s roots are in servicing government employees – a customer base that to this day still makes up the majority of its clients. The company began its operations with an agreement to service government employees in Botswana.

Patterson explains the relationship further: “The largest employer in Botswana is the government, which is where the majority of our customers work.

We therefore started off with an agreement with government to provide loans to those employees that needed them.

“The motivation from the government’s perspective was that some of its employees would need a loan for one reason or another, and at that time the banks would not provide them, which would result in the employee asking the employer for a loan.”

Letshego has continued to nurture this public/ private sector relationship in the years since and

Letshego adapted this model in the course of its expansions on the African continent.

business practices and safeguards it can mitigate successfully against the slightly elevated risks being an unsecured loan lender exposes it to.

ASSESSING THE RISK Understandably, unsecured loans are generally considered higher risk for both the provider and the consumer as there are no assets for the lender to access should the client default, and for the client as they typically of a lower income and more likely to encounter circumstances that make them unable to keep up with repayments.

Letshego understands these risks and has systems in place to lessen them, while still providing a high level of service for its clients. Patterson explains further: “What’s very important is not to overdebt individuals and there are processes in place to ensure this doesn’t happen, for example in Botswana individuals can only have one loan that goes through payroll deduction.”

“There are also safeguards in place in terms of minimum take-home pay, which is set out by government. These principles are enforced by an independent central registry that plays a very important role.”

Minimum take-home pay is self-explanatory - set out by government to ensure that an individual takes home enough pay to cover all their household needs is a specific minimum amount which also prevents loan companies from deducting charges and repayments that the customer cannot afford and would leave them in a bad situation.

Not just because it is obligatory to, but also on principle Letshego stringently adheres to these regulations and works hard to also ensure other companies conduct themselves similarly: “We are actively involved in lobbying governments where these processes aren’t already in place, because we believe that it is in their interest as a responsible employer and our interest as a responsible lender to ensure individuals are protected,” says Patterson.

Letshego also has its own processes to ensure it protects itself from unnecessary risk. Patterson explains further: “We are giving individuals the opportunity to borrow on reasonably straightforward terms, and our only risk is ‘will the individual remain in employment for the duration of the loan?’ We therefore have processes in place to assess the likelihood of this.”

As the majority of its customer base is employed by government, Letshego is somewhat protected by this factor alone, so in combination with its strong

A CROSS-BORDER FOOTPRINT Letshego has offices spread across Sub-Saharan Africa and has plans to expand further, both in footprint and services.

“Our existing businesses are at various stages, for example some are fairly mature whilst others are just starting up with major growth potential, so the first stage in our expansion plans is to continue to grow those existing businesses,” Patterson explains.

With further expansion across the continent in to Zimbabwe, Malawi, Ghana and Nigeria on the horizon, the company is also introducing a range of new services.

“In certain areas we are looking to apply for commercial banking licenses which would allow us to broaden our product range and offer a wider variety of financial services. This is important because the market is becoming extremely competitive and we want to stay ahead of the competition by offering services that are relevant to

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company profile

our customers,” Patterson explains.

“In Botswana and Namibia we are the market leader in terms of deduction at source loans, in other areas we have managed to grow our business quite significantly, but the market is becoming very competitive. More and more organisations are targeting the market, and banks are also becoming very aggressive in this area also.”

Letshego has already established itself as a leading player across its entire footprint and has built up a high level of trust with its clients and within its government partnerships. Because of its existing footprint, further growth will be fairly organic for the lender.

A STRATEGIC FUTURE PLAN One of the company’s more recent acquisitions Micro Africa Limited in 2013, the mother company of Rwanda Microfinance saw the company rebrand to Letshego Rwanda Ltd., and is one aspect of the company’s plan to expand further in to micro-banking

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and deposit taking.

This acquisition not only positions Letshego to serve consumers who previously had limited access to financial services, but is also a step towards further growth and potential diversification.

Jan Claassen, Managing Director of Letshego since 2013, comments further, saying that this move towards micro-banking “is a first step to our diversification plan into a broader micro-finance firm with a financial inclusion agenda.”

Last year the company received a provisional banking licence in Namibia, worth P6.5 billion, similar to the one they also hold in Mozambique.

In the years to come Letshego is also setting its sights on further expansion in to West Africa and Southern Africa – specifically countries like Zimbabwe, Malawi and Zambia, further cementing its position as a financial services leader in the region and servicing the needs of MSE and low income individual customers

.

Imperial Holdings

#BeInspired

Every month we discover awe-inspiring stories of successful entrepreneurship, world-leading innovation and universal inspiration.

In the future we will bring you further stories of business excellence and highlight the hard work that is going on in South Africa to grow the nations industries into global leaders.

Your success is our inspiration

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© Michael Poliza

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