CFO South Africa Magazine - Issue 3 by CFO South Africa

THE MAGAZINE FOR SOUTH AFRICAN FINANCE PROFESSIONALS 3 • 2019 CFO.CO.ZA

Quit to win Debbie Ransby’s Plan B

Bruce Bydawell Alexander Forbes Group CFO Keeping it real

Disruptive M&A Defining your future

Angela Pillay Sasfin Group CFO Telling a good news story

On the road again Four CFOs share their top work travel tips

Umar Banda City of Tshwane CFO Young CFO of the Year

TIME FOR CHANGE

CFO Cares: A new life for former sex workers

CFO of the Year

Ralph Mupita MTN’s problem solver

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THE FIRST BANK IN SA TO ISSUE A RENEWABLE-ENERGY BOND. When you look at the world differently, financial expertise can impact your business and the environment for good. CIB@nedbank.co.za

Nedbank Corporate and Investment Banking is a division of Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

CONTENTS

THE MAGAZINE FOR SOUTH AFRICAN FINANCE PROFESSIONALS 3 • 2019 CFO.CO.ZA

Quit to win Debbie Ransby’s Plan B

page 42

Bruce Bydawell Alexander Forbes Group CFO Keeping it real

page 50

Angela Pillay Sasfin Group CFO Telling a good news story

page 26

Umar Banda City of Tshwane CFO Young CFO of the Year

Disruptive M&A Defining your future On the road again Four CFOs share their top work travel tips

page 36 page 66 page 76

40 TIME FOR CHANGE

CFO Cares: A new life for former sex workers

page 72

CFO of the Year

page 20

Ralph Mupita MTN’s problem solver

CFO South Africa is the organisation for finance executives in South Africa. Our goal is to connect finance professionals online and off in order to share knowledge, exchange interests and open up business opportunities. CFO Enterprises (Pty) Ltd 1 Wedgewood Link, Bryanston, Johannesburg, 2191, South Africa. | +27 (0)11 083 7515 | CFO.co.za © 2019 CFO Enterprises (Pty) Ltd. All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. MANAGING DIRECTOR

DESIGN

PRINTING

Joël Roerig jroerig@cfo.co.za +27 76 371 2858

Elizabeth Ferraris

EDITOR-IN-CHIEF

Toni Muir

Novus Print Peter Wilding peter.wilding@paarlmedia.co.za +27 11 201 3400

Georgina Guedes gguedes@cfo.co.za +27 83 651 2789 COMMUNITY MANAGER John Deane jdeane@cfo.co.za +27 82 570 9482

CFO MAGAZINE • CFO.CO.ZA

PROOFREADING

PHOTOGRAPHY Patrick Furter Ter Hollmann OTHER CONTRIBUTORS Caylynne Fourie, Kate Ferreira, Raisibe Morathi, Ray Mhlaka

People Moves 8

Onwards and upwards for many CFOs this quarter

CFO Awards 14 18 20 26 30

The highlight of the South African finance calendar: The 2019 CFO Awards Finance’s finest in all their splendour CFO of the Year Ralph Mupita: MTN’s problemsolving CFO Nine questions for Young CFO of the Year 2019: Umar Banda from the City of Tshwane Transformation Award winner Hannes Boonzaaier: Doing what needs to be done

Balance 36 42

Debbie Ransby’s Plan B: Quit to win Alexander Forbes’s Bruce Bydawell: Keeping it real

Growth 48 50 56

Making the business case for tech asset rental Angela Pillay: Happy to be telling Sasfin’s “good news” story Raisibe Morathi shares three key themes in worldclass reporting

Future 62 66 70

Broll propelled to global real estate stage through Cushman & Wakefield partnership Disruptive M&A: Defining your future Scary and exciting – CFOs become “futurealists” at Saxon dinner

Community 72 76

CFO Cares: Tryphosa Ramano takes making a change into her own hands On the road again: Travel tips and tricks from top CFOs

56 CFO MAGAZINE • CFO.CO.ZA

FROM THE EDITOR-IN-CHIEF

welve years ago, I took a year off work to travel the world. I was a young magazine editor at that point and considering starting a family, and the ultimatum of “now or never” loomed fairly large. At the time, there were two responses to my decision. The first was along the lines of what I expected: “What an incredible opportunity.” The second was: “But look at how well you’re doing in your career. Why would you give that all up?” It had honestly never occurred to me that I was giving anything up. Surely I’d be able to pick up where I left off on my return? And if one of my peers ended up benefiting from opportunities that I’d missed in my absence, surely another would come along? It’s clear that in the “life’s a journey” vs “life’s a race” debate, I am squarely in the former camp. So off I went, and 12 years on, I still consider that year to be one of the more important experiences of my life. I learnt a lot about the world and myself, and came back with new perspectives on work and life to support me in the next phase of my career. Also, there’s very little that beats watching the sun set over the Mekong River from a hammock on a remote Laotian island. For all of these reasons, I related to Bruce Bydawell’s decision to take some time off to work on farms in Europe at the high point in his career. In his story on page 42, he explains how it restored his perspective on what really matters in life and on not holding on to things too tightly. And clearly, it didn’t damage his career prospects, because on his return, he was appointed as Group CFO of Alexander Forbes. Another person who’s confronted her own beliefs about the really important things in life is Debbie Ransby – one-time FD of Takeda who, upon being appointed as MD in a bittersweet moment, realised she was not in a healthy space, and started laying the groundwork for her departure. Now established as an executive coach, she reflects on her journey to this point on page 36. The CFO of the Year also took the path less trodden – although his journey led him to being a CFO rather

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than away from it. Ralph Mupita started out as an engineer, completed an MBA, moved into financial services, and was recruited into the role of CFO of MTN, where he’s been applying his engineering brain to problem solving of a financial nature. His performance made him a worthy winner of four prizes at the CFO Awards, and we chatted to him about the vision that got him there on page 20. Other award winners featured in this issue include Afrocentric Group CFO Hannes Boonzaaier, who won the Transformation Award by doing what needed to be done (page 30), and Umar Banda, CFO of the City of Tshwane and Young CFO of the Year, who takes youth empowerment in his city seriously (page 26). The CFO Awards are a highlight of the finance calendar for good reason. For the CFO South Africa team (pictured above), it’s extremely rewarding to see the finance community come out in support of their leading colleagues. You can find out more about the evening’s celebrations on page 14, and take a look at how South Africa’s finance elite come out in style on page 18. Yours, in celebration of life’s journey, wherever it may lead you, Georgina Guedes Editor-in-chief gguedes@cfo.co.za +27 83 651 2789

SANDTON CONVENTION CENTRE 16-17 OCTOBER 2019 LEARN | NETWORK | BUILD YOUR CAREER

THE BIGGEST

FINANCE CONFERENCE

IN AFRICA

with top executives like Zaf Mahomed, CFO of Cell C, Liaan Kretzschmar, FD of Jaguar and Land Rover SA and Lori Milner, Director of Beyond the Dress and rock star speakers like entrepreneur and best-selling author Marnus Broodryk and Young CFO of the Year Umar Banda, CFO of the City of Tshwane. Some topics you don’t want to miss: – Turning an accident into a business empire with Ryan Bacher, Netflorist MD – Own your time with Lori Milner, Beyond the Dress Director

Finance professionals register for FREE www.finance-indaba.co.za Do you want to exhibit at Finance Indaba Africa 2019? Contact John Deane jdeane@cfo.co.za | +27 82 570 9482 or visit www.finance-indaba.co.za

PEOPLE MOVES

ONWARDS AND UPWARDS FOR MANY NEW CFOS THIS QUARTER Barloworld, Oceana Group and EcoBank appoint award-winning finance professionals and PnP CFO retires after 34 years. as its new CFO and executive director as of 17 June. Elton will be taking over from Trevor Giles, who had been acting in the role of interim CFO after previous CFO and 2015 Transformation & Empowerment Award winner Imraan Soomra was appointed as CEO in August 2018. Mohammed Abdool-Samad, a previous CFO Awards nominee, has been appointed as the CFO of Massmart. He will be taking over from Hans van Lierop from 1 August. He joins Massmart from Illovo Sugars, where he was group finance director. Nopasika Lila

Nopasika Lila has been appointed as group FD of Barloworld as of 1 August. Nopasika is a well-respected finance leader and was nominated for the CFO Awards in 2017 for her work at the Eskom Pension and Provident Fund (EPPF). She later became CEO of the fund, but resigned earlier this year. Mary-Anne Musekiwa has been appointed as Coronation Fund Managers’ new CFO. Mary-Anne has been deputy CFO since December and has replaced John Snalam as of 12 June. Oceana Group has appointed former Clover Industries CFO Elton Bosch

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“I am looking forward to being part of a vibrant industry, with massive opportunities.” – Mohammed Abdool-Samad He said the “challenge of moving to a new industry (retail) and moving back into the listed environment” is what made him take the job. “I am looking forward to being part

Elton Bosch

of a vibrant industry, with massive opportunities, operating in the context of a subdued economy,” he says. Bakar Jakoet will be retiring as CFO of the Pick n Pay Group. He has agreed to remain in his position until a successor has been appointed and will serve as a non-executive capacity on the board after that. He joined the group in 1984, working in the national finance office, heading up special projects and new business. He was appointed a divisional manager in 1993 and served on the retail board as chief finance controller since its inception in 1995. He was appointed

Thembi Mazibuko appointed as Masslift’s first CFO Masslift Africa has appointed Thembi Mazibuko as its new CFO as of 7 January. The CFO role is a new role within the company. CEO Geoff Tucker, who is due to retire at the end of 2019, used to perform both the finance and operation function. Thembi has also joined the board of directors as of 1 April. About her appointment, Thembi told CFO South Africa:

Marco to get their working capital cycle delivering for the company, as it is the “heartbeat of any organisation”. “There is no ‘big brother’ that can extend funding so cash management is critical and key to the smooth functioning of the business.”

“I’ve been in the logistics industry since I qualified, so I’m excited to learn about the forklift industry, which generates revenue from both services rendered and the sale of Mitsubishi forklifts.”

She says that business process enhancement, especially within the finance function, is also a key focus to streamline internal processes and unlock efficiencies so that the team is focusing on their core function and not other nonvalue adding activities.

She is collaborating closely with

Risk management also plays a big

as CFO and a member of the Board in 2011. Intu Properties announced that their CFO Matthew Roberts will succeed David Fischel, who has stepped down and left Intu Properties from 29 April, as CEO. Robert Allen has been appointed as

Intu’s new CFO as of 10 June. Kagiso Lerutla has been appointed as the new Ekurhuleni Metropolitan Municipality CFO after Gugu Pride Malaza resigned following a probe into the alleged non-disclosure of information regarding her dismissal from the South African Broadcasting Corporation (SABC). As a result of her resignation, the disciplinary process against her has been brought to an end. Former American International Group Inc (AIG) CFO Senele Mbatha has joined the Discovery Group as the CFO of Discovery Vitality as of April. ACSA has appointed Lindani Mukhudwani as its new acting CFO. She will be taking over from Dirk Kunz, who has been acting CFO since January 2017. Dirk will be returning to his role as group manager of corporate finance.

Mohammed Abdool-Samad

Mark Gregg-Macdonald will be taking over from Mohammed

Thembi Mazibuko

part in her short-term plan for the role. She will be reviewing policies and procedures to ensure that they are aligned with and still relevant to the strategy of the company. She will also be assessing any additional risk that may need mitigation.

Mahomedy as Transnet’s acting CFO, who was recently appointed as Transnet’s acting group CEO. He will also serve on the board of directors. Mark joined Transnet in 2001. At a meeting of pan-African Ecobank Transnational Incorporated’s directors, the board accepted the resignation of CFO and group executive of finance Greg Davis. Ayo Adepoju, who has worked very closely with Greg, has been appointed as acting CFO. He has performed the role of group head of business performance and analytics for the group for the last two years. In 2015 Greg, who was the CFO of Standard Bank Africa at the time, won the Moving Into Africa Award at the CFO Awards. Heidelberg Graphic Systems South Africa has promoted its FD Marc Lotter to MD and territory head as of April. Marc joined the company in June 2015 as FD.

CFO MAGAZINE • CFO.CO.ZA

PEOPLE MOVES

Chryso Southern Africa has appointed Pieter van Buuren as its new CFO. Pieter resigned from Basil Read on 21 September 2018 after the company had gone into voluntary business rescue. He became an independent financial expert before joining Chryso Southern Africa.

Greg Davis

Arrowhead Properties has appointed Arend de Kock as interim CFO after former CFO Imraan Suleman resigned following an instance of the unauthorised use of company resources. Arend has been responsible for the daily financial operations of the company under the guidance of Imraan.l

“The wheel will begin to turn in 2019. Business has to happen, the entrepreneur will come to the fore and things will start moving again.” – Graham Mears

Self-confessed “digital native” new M&C Saatchi Abel CFO M&C Saatchi Abel appointed Graham Mears as the group’s new chief financial officer in May. Graham has over two decades of experience as a CA in the financial and marketing industry, with the last four spent within the advertising landscape. He has a wealth of digital experience and, as a result, “is a self-confessed ‘digital native’”. About his decision to move to M&C Saatchi Abel as its new CFO, Graham said: “I was excited by the prospect of joining a highly entrepreneurial agency. M&C Saatchi Abel has a unique partner model, with the partners having an equity stake in the business. The partner model incentivises a relentless quest for growth and innovation, while encouraging risk-taking and investment. Additionally, employees are encouraged to be brave, and to do so while living up to the ethos of ‘Brutal Simplicity of Thought’, which I love.”

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He says it is also important to him to play a part in the ongoing transformation of the business, which already has a level 1 B-BBEE rating, while always being mindful that transformation is about more than just a scorecard. With 2019 predicted to be a tough year financially for the country and consequently agencies and their clients, Graham believes that while most agencies are engaged in cutting staff costs and juniorising their talent, this strategy will result in a race to the bottom. He therefore seeks to promote a strategy of investment in the best talent to solve clients’ business problems, to ensure that the year is a profitable one for the M&C Saatchi Abel Group and that offerings are affordable for clients. Looking to the future, Graham says he is a little unusual as he’s an eternal optimist: “Last year, most clients cut marketing

Graham Mears

spend and delayed initiatives, but this can’t go on forever and the wheel will begin to turn in 2019. Business has to happen, the entrepreneur will come to the fore and things will start moving again. M&C Saatchi Abel has remained resilient through the tough times thanks to its enduring approach of creating beautifully simple solutions for a complex world and will be well positioned to benefit from any upturn in the economy.”l

Find your dream job today JobsInFinance.co.za Employers and recruiters are invited to create an account on JobsInFinance.co.za and upload their finance vacancies for immediate results. For special deals and campaigns, please contact Nick Smith | nsmith@cfo.co.za | +27 72 202 1071

Finance Indaba showcases what South Africa’s finance community can do Finance Indaba returns to the Sandton Convention Centre for the fourth year running on 16 and 17 October, bringing together South African finance professionals for unparalleled learning and networking opportunities.

inance Indaba Africa is the biggest finance conference of its kind in Africa, showcasing world-class speakers, with over 5,000 finance professionals annually, 75+ exhibitors and more than 120 expert sessions.

For two days, thousands of CFOs, finance professionals, service providers, technology providers, specialists, entrepreneurs and business gurus gather under one roof for unparalleled learning. Finlytics CEO Brian Jarret said that Finance Indaba 2018 was: “One of the best conferences in the world

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that actually showcases Africa and what South Africans can do. The networking opportunity is incredible and second to none. I’ve met at least 50 to 100 people and I can’t do this anywhere in Africa!” Finance Indaba will be returning to the Sandton Convention Centre this year for the fourth time on 16 and 17 October, featuring top speakers like: • Entrepreneur and best-selling author Marnus Broodryk • Barloworld Equipment executive head of business services and Public Sector CFO of the Year 2017 Ramasela Ganda

XXX

• Kumba Iron Ore CFO Bothwell Mazarura • City of Tshwane CFO and Young CFO of the Year 2018 Umar Banda

Come to the Finance Indaba 2019 and grab the opportunity to:

RMB CFO Storme McDonald said: “Finance Indaba makes sure that relevant topics are looked at and moves with how the world of finance moves.”

• Learn about the latest in analytics and automation,

If the networking opportunity, with the more than 3,000 finance professionals that have already registered, isn’t a good enough reason to register, there will also be free beer and a performance by comedian Nik Rabinowitz.

• Hear from women leaders shattering the glass ceiling,

Finance professionals and members of recognised professional accounting bodies can register for free, and non-finance professionals can purchase a ticket. All professionals can earn 12 CPD points. l

• Receive advice on balancing work and life, and

• Hear about the personal experiences of leading South African CFOs, • Get tips on exercising corporate governance and due diligence, • Receive personal lessons from international finance leaders, • Hear from your public sector servants on how they are building a better future for South Africa and South Africans.

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The highlight of the South African finance calendar: The 2019 CFO Awards South Africa’s leading finance executives gathered in Bryanston to recognise and celebrate the finest in their profession.

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Xolani Mhlaba, Standard Bank executive head of finance, André du Plessis, Capitec CFO, and Emilia Teixeira, Mercantile Bank CFO

outh Africa’s top CFOs gathered under the autumn sky on 15 May at the Dimension Data Campus in Johannesburg for the sixth annual CFO Awards, known widely as the “Oscars of the finance profession”, where they were treated to the evocative sounds of violinists, delicious canapés, and a viewing of the gibbous moon through the telescope with renowned astrophotographer Cory Schmitz. After networking under the stars, the CFOs headed into the marquee, elegantly decorated in black, gold and silver, and were treated to a menu prepared by Franz de Waal, who is known as “the power chef”. In line with the “Adapt or die” theme of the event, Franz created an excellent “adaptability” menu that was deliberately prepared with organic vegetables, free-range lamb and chicken – and without the environmentally problematic ingredients of beef and palm oil. Prominent comedian Nik Rabinowitz returned to the CFO Awards as the master of ceremonies. He threw humorous jabs at the audience and the entire finance profession: “Last year's CFO awards theme was 'Do the right thing'. I think these themes are built on movie themes. In

2025, the theme will be "Robot CFOs: Make sure they don't kill you," he said to an audience that burst into laughter. This year’s “Adapt or die” theme reflected the often-complex environment that CFOs navigate in their everyday reporting and implementation role in organisations, and the need to evolve in their roles or lose relevance. Joël Roerig made his debut on the CFO Awards stage as the CFO South Africa MD, saying the event was a celebration of excellence in the finance industry: “The CFO Awards have become a crucial date on the calendar for finance leaders to reflect and celebrate excellence – dress up, network, and share an amazing meal together. The event is also a part of a CFO community that is a trusted, safe space for CFOs and FDs." He pointed out past CFO of the Year winners who were among the other attendees of the evening, including Simon Ridley, who won in 2014 as Standard Bank FD, Discovery CFO Deon Viljoen, who won in 2015 when he was at Alexander Forbes, 2017 winner Till Streichert from Vodacom and AngloGold Ashanti’s Christine Ramon, who won in 2018.

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Thando Headbush, CFO of Compensation Fund

Joël also acknowledged the several companies that made the CFO Awards possible. Principal sponsor Deloitte headlined the awards for the third year in a row. Awards sponsors include Momentum Corporate (a first-time sponsor), PwC, Oracle, RMB, Standard Bank, SNG Grant Thornton and Workday. Associate sponsors include Drayton Glendower & Mokhobo, KPMG, Kumba Iron Ore, MTN and Phembani Group. Deloitte chairman Trevor Brown took to the stage to say that Deloitte’s support of the CFO Awards is a sign that the firm is committed to the development of CFOs in the country. “We are behind CFOs in the country and assisting CFOs to run their operations. Locally and globally, we have a fresh insight into every stage of their career, how to manage their roles, and adapting to strategic shifts in the market,” said Trevor. MTN CFO Ralph Mupita, who was not able to attend

CFO MAGAZINE • CFO.CO.ZA

the Awards because he was working in Nigeria on MTN’s Nigerian Stock Exchange listing, was declared the CFO of the Year, in addition to winning the Strategy Execution, High-Performance Team and Finance Transformation awards. In an acceptance speech recorded in the case he won, Ralph thanked his finance and group executive team at MTN. "This award is for the men and women of MTN who are making a fantastic contribution to the company," said Ralph, who described his team as dedicated and diligent, and thanked the team at CFO South Africa as well. Capitec CFO André du Plessis walked away with the Compliance & Governance, and Finance & Technology awards. He said: “The Capitec journey has been difficult but successful. We are told by investors that we need to relax now that we have many banking clients. However, we need

Arno Daehnke, Standard Bank Group FD, receiving the Moving into Africa Award

to work harder and smarter every day to maintain and build the business to the next level. To transform the country, we need to work together to create jobs and inclusion. That's part of my job every day. We need to build the corporate governance that we had before state capture and governance issues. We always keep each other accountable." Standard Bank FD Arno Daehnke won the Moving into Africa Award, saying: “This year I will be visiting 20 Africa regions. For me, it is energising to see what is happening north of Limpopo and the innovation we are seeing in the content. We are excited about this at Standard Bank.” AfroCentric group CFO Hannes Boonzaaier walked away with the Transformation & Empowerment Award. In his speech, Hannes said he has faced peaks and troughs in his career: “I've been through the highs and lows of performing due diligence, closing companies, winning and losing contracts,

dealing with customers and their unreasonable demands. It wouldn't be possible without my team that has supported me and AfroCentric that has allowed me to go to different countries." City of Tshwane CFO Umar Banda won the Young CFO of the Year Award. He said it’s important for young people to be an opportunity to lead and demonstrate their skills in the finance industry. “A lot of CFOs and senior executives are close to retirement. When I started at the City of Tshwane, I never thought I'd be the CFO. But it was with the support of my team that I grew in my profession. This country needs young people to provide ethical leadership to get the country out of the mess." The Industrial Development Corporation (IDC) CFO Nonkululeko Dlamini was awarded the Public Sector CFO of the Year Award. She was also not in attendance, but a colleague at the IDC accepted the award on her behalf. l

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Cox Mokgoro, CFO of the Avashnee Ramdial, Stanlib CFO

Department of Public Works

Jen McDonald, Deloitte Africa CFO

Finance’s finest South Africa’s leading finance professionals donned their tuxes and evening dresses to celebrate the leaders in their profession at the CFO Awards. These are just some of the most stylish outfits of the evening.

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Nakedi Ramaphakela, Masimong Group Holdings CFO

Mark Kathan, AECI CFO, and Christine Till Streichert, Vodacom CFO

Ramon, AngloGold Ashanti CFO

Delise van der Byl, Deloitte Africa client programme leader, Storme McDonald, RMB Corporate Banking CFO, Claudelle von Eck, IIA SA CEO, Aarti Takoordeen, JSE CFO, and Debbie Ransby, executive coach

CFO MAGAZINE â&#x20AC;¢ CFO.CO.ZA

CFO of the Year MTN’S PROBLEM-SOLVING CFO

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Photos: Patrick Furter

Two years into his role as MTN CFO, Ralph Mupita received four CFO Awards, including CFO of the Year, for the pivotal part he’s played in turning MTN around. CFO South Africa met with Ralph to learn more about the man behind the strategy and the awards. What emerged was a clear picture that this engineer has turned his mind to solving problems in telecommunications, finance and the African continent. By Georgina Guedes

CFO AWARDS

t the CFO Awards 2019, Sugentharen Perumal, executive: group finance operations at MTN, walked up to the stage to accept an award on behalf of Ralph Mupita, not once, but four times. He was accepting the awards because Ralph, MTN CFO, who was voted CFO of the Year, along with taking home the Strategy Execution, High-Performance Team and Finance Transformation awards, was unable to attend the awards ceremony. This was because he was in Nigeria, listing MTN Nigeria on the local stock exchange. This was a crucial step for the telecommunications giant, and also a significant contributor to the strategy that propelled Ralph to his CFO Awards success. The Nigeria listing was the end point of a long-term plan to resolve some complex issues in the country. To say that MTN has had a difficult time in Nigeria in recent times is an understatement. Many of the issues were inherited when Ralph and CEO Rob Shuter took the helm two years ago, but it fell to them to resolve these various challenges, including a demand by the Central Bank of Nigeria for $8 billion of dividends to be repatriated to the country, a $2 billion tax demand by the Attorney General, and ensuring that the agreement related to the 2015 SIM registration fine of $1.6 billion is fully implemented. One of the conditions of the SIM registration fine was to list the business in Nigeria, which was achieved by 16 May 2019, the day after the CFO Awards. Coming in a very busy and complex week for Ralph, his awards recognition was uplifting news – and he was glad that his team was there. “I am very appreciative of the recognition. For me it was really about my team. I’ve had a strong team working in the background supporting some of the listing activities. And some of those people were in the room for the awards. I’m glad they were there, even though I couldn’t be.”

The engineer in a finance role Ralph is an engineer by training. He went to UCT to study after completing schooling in his native

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Then, he received a call from Phuthuma Nhleko, the former CEO and non-executive chairman of MTN Group board. “Halfway through him drinking his tea, me drinking my coffee, he said, ‘How would you like to join MTN?’ Initially, I chuckled. Then I went home and asked my wife, Makole Maponya – who is a CA – what she thought of the proposition. I’d never worked in a CFO role. It took me all of two days to think about it. Having reflected, I felt I could take up the role and be part of a leadership team that would put the business into a stronger position to take advantage of the opportunities that digital and financial inclusion presented in Africa and the Middle East. MTN was looking for a CFO who could go beyond the traditional role of the CFO and add a few things more.” Ralph did some further research and was reassured to discover that many global CFOs are not CAs, and that in South Africa, somewhere between 20 and 30 percent of listed companies’ CFOs also do not hold the qualification. “Obviously you need someone who understands numbers. And I see numbers as a language that tell me why things are the way they are. Having trained as an engineer, I am very comfortable with numbers. I believe the most important thing about them is that they have integrity.”

“Having trained as an engineer, I am very comfortable with numbers. I believe the most important thing about them is that they have integrity.”

He added that he felt very humbled considering the “class acts” among the others who were nominated. “It couldn’t have been easy for the judges.” He does confess to a sense of relief that the two processes – the Nigeria listing and the “interesting” but intensive awards interview process – had come to an end.

Zimbabwe 30 years ago. “I worked on engineering and construction sites all around the Western Cape, then kind of drifted towards doing an MBA. In the middle of those studies, I realised I wanted to move away from engineering, and I ended up in financial services, working at Old Mutual for 17 years – even though I started with a one-year plan – and ultimately serving as the CEO of Old Mutual Emerging Markets.”

While the change from being a CEO to a CFO was an unusual one, Ralph was encouraged when he recalled that one of the people he had looked up to, Tidjane Thiam, CEO of Credit Suisse, was once a CEO before taking on the role of CFO. “It’s unusual, but it happens.”

He also points out that while bringing a financial services CEO into a telecommunications company might not seem like the most obvious move, there’s a certain logic to it. “At MTN, we firmly believe that the future of financial services is on the phone, so my appointment isn’t as unusual as it might appear on the face of it.” The other experience Ralph had gained in financial services that was now becoming increasingly important was capital allocation and a focus on returns.

“The CEO is where the buck stops, but a CFO needs to be an advisor, not only to the CEO but also to the company.”

He says that the most important thing for him in going into a new environment is to be curious and learn, and in that, he says, he’s been supported by his excellent team. “Technically, they are very strong. I’ve asked questions and had to learn the language and important issues. But it’s a constant journey, and I’m invested in that.” His role at MTN gives him the opportunity to exercise one of his great passions: making a contribution to Africa's development. “I like travelling on the continent. I like solving problems. It comes with being an engineer. I am attracted to challenging situations. They bring out the best in me. So the MTN CFO position spoke to four of my passions: Africa, solving problems, creating value and working in a team.”

A curious mind Ralph says that his curious mind has served him well as he’s shifted industries twice in his career.

“I’ve always had the view that you must be constantly learning and have a mindset that says when you get into new situations, you should immerse yourself and become the situation you are in. I’m blessed that I am always curious and always able to adapt.” He’s found mentors to support him in his learning and growth journey. “When I moved from engineering to finance, one of my mentors told me that there were five things that I needed to understand the industry and its value chain, and then those things each branch into another five things. It was a useful way to get a real grasp of the sector.” He says that always being a bit of an outsider has helped him to ask interesting questions that deliver new insights. “Coming into financial services, the learning curve was pretty steep. There’s always a year to 18 months that’s difficult, and during which time I was learning every day.” He went through the knowledge acquisition process

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CFO AWARDS

The MTN team celebrating Ralph's wins at the CFO Awards.

all over again when he joined MTN. “I’m still learning and will continue learning. There’s always that first 18 months of the steep learning curve, but then I get more comfortable and start picking things up almost intuitively rather than learning them.” The other transition, that of moving from being the CEO to a CFO, also took some adjusting. “The CEO is where the buck stops, but a CFO needs to be an advisor, not only to the CEO but also to the company. It’s a strong advisory role. Also, the CFO is there to provide balance to decisions – to provide strategic thinking and highlight the financial effects of decisions. Or at least that’s how I work with Rob – providing balance, giving a risk-based view, providing clear options and working through the consequences of those options, and testing their soundness based on the data, instinct and history.” He adds that he’d been fortunate to work with Rob before, when Rob was at Nedbank and Ralph was at Old Mutual, which was helpful in the transition. “I must also commend Rob for helping me on the learning journey because he had also made the transition from financial services to working in telecommunications, working for two years as a CFO at Vodacom, before becoming a regional CEO there.” He says that he has to credit Phuthuma Nhleko for his support. The opportunity to work with Phuthuma was one of the benefits of joining MTN, as far as Ralph was 24

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concerned. Phuthuma, like Tidjane Thiam, has been a role model over the last two decades for Ralph. “He’s another engineer MBA, and engaging with him has helped me to learn a lot about the industry and business more generally. Between Phuthuma and Rob, I’ve learnt a lot.”

MTN culture and values Aside from the change in industry and role, working in any new organisation comes with a cultural adjustment. “What was very helpful coming into MTN just over two years ago was that the values deep within the company are my own personal values – having a can-do attitude, teamwork is key, believing that everyone deserves the benefits of a modern, connected life, where digital connectivity and financial inclusion is critical. And as I have already mentioned, we’re making a difference on the African continent, which I am passionate about.” His engineering background means that he likes to solve problems. MTN presented him with the opportunity to do just this. “It’s in my DNA, my make-up to solve problems. And the more complex they are, the better. When I came to MTN in 2017, I was very mindful of the challenges the company was going through. I was very clear, coming into the situation, that there was a need to make some changes, working with Rob

“I feel at home in Johannesburg, Harare, Lagos, Accra or Nairobi. Africa is home, and I would like to make a small contribution to its socio-economic development.” and the broader team, to put the business in a more stable position. It has an industrial strength finance organisation and risk organisation, and I knew I was coming in with those key things.” He says that when he came into the business, he had a list of three-year goals. The first was building a worldclass finance function, and he has been making the necessary changes, and will continue to do so. The second priority was capital allocation. “I had the benefit of my financial services experience to see what happens when margins really come under pressure. So we had to reposition the business in a lower margin environment. We had to prioritise putting capital where the returns are going to be. We now have set out a very clear capital allocation process.” His third priority was to enhance the risk control environment. And the final goal was to build a culture of excellence. “A culture of excellence never gets to its destination. It’s always improving.” The fruits of this strategy are bearing fruit and in March this year, MTN announced a massive increase in headline earnings per share of 85.2 percent, and service revenue up 10.7 percent.

A Southern African executive When the news of Ralph’s CFO Awards win broke, the Zimbabwean press responded with enthusiasm, even though Ralph has lived and worked in South Africa for 30 years. He still returns frequently to visit his mother, though. “I’ve lived all my adult life in South Africa – studying, working as an engineer, moving to Old Mutual. I met my wife there, working in asset management. She is South African and my children were born here. While I have spent the bulk of my life in South Africa, I was born in Zimbabwe, and I see both as home. I see myself as an African. I’m super passionate about Africa, and feel at home in Johannesburg, Harare, Lagos, Accra or Nairobi. Africa is home, and I would like to make a small contribution to its socio-economic development.”

This, he says, benefits him as he works across the different regions of the continent. “At MTN, we work with different cultures and norms, in markets where there are predominantly Christian or Muslim religions. You’ve got to be able to work within those markets, being fully comfortable with your own identify, while at the same time being respectful of others. Having been born in one country and then learning the cultural aspects of another does help me as I work and travel on the continent.”

Family and Formula 1 Ralph says that his deepest passion is for his family, and he spends a lot of time with his wife and children. His wife, he says, is particularly good at explaining accounting standards when they seem counterintuitive to his engineering mindset! He also loves watching sport, especially cricket and rugby, and he used to run marathons and ultramarathons. But his real interest lies in Formula 1, which he watches not just as a spectator but as an engineer. “I’m always working things out, following the strategy, working out when they’re going to change the tyres, what car will do well on what course because of the downforce.” No matter whether he’s at home or at work, Ralph is clearly a problem solver. This attribute has stood him in good stead as he’s adjusted to a new role in a new industry, and it will continue to drive him on to excellence in the years to come. l

The transformation of the CFO Ralph says he is often asked how he sees the CFO role evolving. “My view is that I think in the future, with machine learning and artificial intelligence, the transactional part of finance is going to change quite radically. We will need finance leaders with stronger strategic skills who are much more anticipatory with much more agility, ready to deal with a lot more uncertainty. “Instead of looking at a three-year budget cycle, we now need to think every quarter about how things are changing and how we need to respond to them. Strategic skills and the ability to adapt are going to come more and more to the fore, and will be demanded of finance leaders going forward. “Finance leaders used to report on the performance of the company, but now are leading the development of strategy as they understand the dynamics of the company much more than anyone else.”

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QUESTIONS FOR YOUNG CFO OF THE YEAR 2019 UMAR BANDA FROM THE CITY OF TSHWANE

At the CFO Awards on 15 May 2019, Umar Banda walked away with the Young CFO of the Year Award, in recognition of the exceptional work he is doing at the City of Tshwane. He has addressed the metropolitan municipality's illiquid position by finding innovative ways to generate income, and he is excited about the establishment of a CA programme, which will bring much-needed skills to the field of public finance. Georgina Guedes asked this trailblazing CFO some questions about his vision for the City of Tshwane.

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Photos: Ter Hollmann

“The unemployed are mostly the young. If we don’t do anything to change that trajectory, we are going to have a problem as a city and as a country.”

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How did you end up in the role of CFO at the City of Tshwane?

I completed matric at Zinniaville Secondary School in Rustenburg. In Standard 9, I wasn’t sure what to do after school, but then we had a career day, and I was intrigued by the accounting profession. I was quite good at accounting and maths, so I thought, let me try this thing. I went to the University of Pretoria and obtained a BCom degree in Accounting Sciences, and an honours degree as well. Then I joined KPMG in Hatfield as an junior accountant, and eventually I qualified as a CA in 2008. I left KPMG in June 2012 to join the office of the Auditor-General, but after a couple of months, the opportunity came up to join the City of Tshwane as head of financial reporting and assets, and I was appointed in 2013. After about two years, they asked me to act as CFO, and from then on, doors started opening, and I was officially appointed in the position in 2017.

What in your mind makes a great public sector CFO?

For a number of years, the public sector has been plagued with controversies, when it comes to compliance with legislation, so I think the thing that comes to mind first is ethical leadership. People need an exemplary figure that they can follow, so that they can be the public servants that we need them to be in this city of ours.

In your acceptance speech for the Young CFO of the Year Award, you spoke about the importance of empowering the youth. Could you share with us why you believe this is important? I have always believed in investing in young people, so one of my endeavours has been to appoint a lot of

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young people to bring new ideas into the system and to make sure that, as and when people are ready for retirement, we are able to continue as a city. In this ever-changing world, we need to be ready with new ideas for how to take this city forward. I believe that this is important because if you look at the unemployment statistics, especially in Tshwane, which is the most youthful city in the country, the unemployed are mostly the young. If we don’t do anything to change that trajectory, we are going to have a problem as a city and as a country. If you look at the number of service delivery protests and work stoppages, they mostly involve young people who are looking for opportunities. If we don’t create those opportunities, the situation will become a problem for the city and the people we serve.

You have introduced a CA programme at the City of Tshwane. Please tell us more about it.

When I was still in high school, one of the most amazing things that happened was that I met a gentleman who was willing to provide financial support throughout my high school years, and because I had reasonably good marks in matric, I was offered a scholarship to university. Then, when I was at KPMG, my manager was a person who was really willing to make a contribution to changing someone else’s life. In this profession, one of the things we are always encouraged to do is to mentor the people who come after us. For eight years, I got accustomed to that. So, when I left the AuditorGeneral, it became my passion to introduce something similar at the City of Tshwane. I appointed two CAs a couple of years ago. After six months, they left because they weren’t used to the environment. There is a shortage of young, black CAs in the country, and we need financial management skills in the

field of local government. Without the training, it becomes very difficult to thrive in the environment. So Group Financial Services has created a CA training programme to allow young graduates the opportunity to become CAs. The City provides the training in partnership with SAICA. We will produce CAs who are accustomed to the public sector environment, and they can continue beyond their training here or they can provide services to the public sector at large. My dream is to have a couple of them signed off in the next five years.

What is your vision for the future of the City of Tshwane?

Financial resilience. I want clean audits and clean governance for the City. The environment is conducive, we have the right people and, with the CA programme, we are well on our way to contributing to the capital city we all want to see.

What are you proudest of in your time as CFO?

I am proudest of the efforts we’re making towards youth empowerment. Outside of the CA training programme, we’ve been hiring young people with at least Grade 12, preferably with mathematics, and given those young people jobs, such as calling our customers daily to remind them to pay accounts or going out to assist with meter readings. Giving opportunities to people that don’t have hope for tomorrow is extremely fulfilling. I am also proud that the City of Tshwane was upgraded two notches by Moody’s last year – something that hasn’t happened in seven years. This is really a demonstration of the kind of work we are putting in as a team. Our finances are resilient, and we can continue to support the vision of the City going forward and make sure that we are able to deliver services.

You’ve achieved great cost-savings and efficiencies at the City of Tshwane. Tell us some of the measures you adopted. When I was appointed, we were in a technically illiquid position, so I had to introduce a financial recovery plan. We looked at a few areas. We engaged with customers to make them aware of their obligation to pay their municipal accounts, which has seen about a three quarters of a percent increase over the past year, which amounts to quite a lot if you consider the number of customers we have. We also have the Wonderboom Airport that we’re not taking advantage of. If you fly over OR Tambo’s airspace, you pay a fee, but if you fly over ours, you pay nothing. We have a national licence, so we’re looking at commercialising the airport. If any airlines want to come to us, we’re just about ready. And then, in a city of this size – it’s a city of 6,000 km2, the largest in the country – we have a number of properties, so we’re looking at options to lease them at market-related rates or to get rid of them. So my focus is on concentrating on what we can do on the commercial side to increase our earnings, because increasing tariffs is getting too expensive.

Umar with Zuko Mdwaba, country MD of Workday, which sponsors the Young CFO of the Year Award

This was your third nomination for the CFO Awards. How did you find the process?

It was quite daunting. This year was a particularly difficult one. One of the things we struggle to do as people is to share the things we’ve done well. You can quickly forget the little things you’ve done that have made a big difference in the working environment. This year, I looked at very high-level things, recollecting what had happened over the last 12 months. When my name was announced as the Young CFO of the Year, I thought I hadn’t heard properly. I had to make sure that they had actually

said my name. It’s a feeling that is quite difficult to explain.

What do you do to relax?

Being halfway through my first five years as CFO, as you can imagine, the environment is quite strenuous and stressful. I take a lot of time to enjoy nature. I really enjoy fishing – not that I know how to. I’ve only caught three or four in the last few years. But it’s one of the ways I am able to relax. On the weekend, I do gardening, which relaxes me quite a bit – it’s a different environment to being in the office. And I love going home to visit my family in the village, where there’s total serenity. That’s how I relax.l

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Photos: Patrick Furter

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Transformation Award winner Hannes Boonzaaier

Doing what needs to be done The Afrocentric Group CFO is pragmatic in his approach to helping the company to achieve a Level 1 rating: “You just look at what’s got to be done and you do it.” By Georgina Guedes

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How do you eat an elephant?” the old question goes. The answer? “Bit by bit.” This is how Hannes Boonzaaier, Afrocentric Health CFO and recent winner of the Transformation Award at the CFO Awards, outlines his company’s contribution to the ideal of universal healthcare. “We see opportunities where we can provide solutions on a smaller scale,” he says. “We’re already providing a chronic medication solution to 750,000 state patients in four provinces. We deliver their medication to them at their workplaces so they don’t have to go into the clinics. We started this with the Department of Health in 2014, and it’s already grown to significant volumes, making it worthwhile even though the margins are low.”

He explains their approach. “What we try to do is pass the benefit. There’s a lot of fat in the healthcare chain in South Africa due to fragmented care and suppliers. We want to make our schemes more successful, so if our schemes, Bonitas, GEMS, Polmed and Fedhealth can come with lower rates and lower increases on the market, our membership will grow and that’s where we’ll make our money. For sustainability, we want to drive healthcare costs down, so we only buy a business if it will mean that we can do it cheaper than the market is doing it currently.” As a part of this strategy, Afrocentric has been purchasing businesses in the medical value chain that will allow them to leverage relationships and harness efficiencies in delivering healthcare solutions to their clients. “The group has diversified and our traditional medical scheme administration business is probably only 60 percent of our group at this stage, split between Joburg

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He says that the positive outcomes of good ideas – especially those in Afrocentric’s acquisition and expansion space – excite and inspire him.

“People always want to go out in the market and buy talent, but I’ve seen it so many times that you will lose those people in a couple of years.”

He says that Afrocentric, which owns one of the biggest medical scheme administrators, Medscheme and various other pharmaceutical companies, is all about providing medical solutions to its clients and patients (rather than rolling out bricks-and-mortar institutions). “Widely, what we want to achieve as a group, is that we feel that we can drive healthcare costs lower by assisting our funder schemes to make better-informed decisions on their procurement strategies. The DNA of what we do every day is ask how we make our clients’ access to healthcare easier, whether it’s processing a claim quicker, buying more cost-effective services and products or giving them the ability to transact with us via apps.”

and Cape Town. We’ve diversified into a pharmaceutical business, based in Pretoria, and various other disciplines from hospital consumables to back and neck rehabilitation services.”

“As we expanded our pharma business with new warehousing facilities, it added so many synergies for the business. We now have our disaster recovery site there, and many of our administration business units are also being located closer to this new environment to co-create synergies and new products. It’s optimised so much more than just the warehouse for the pharmaceutical business. It excites me to come up with new ideas every day about how to optimise things. It makes the day worthwhile. And then reporting them in the end, you know what a lot of work you did to get to that entry.”

Eating the B-BBEE elephant Another significant aspect of Hannes’s work that he’s applied the “eating the elephant” approach to is the company’s B-BBEE scorecard, for which his efforts earned him the Transformation Award. “We’re at Level 1. I’ve been very involved since the new codes came in, and ran the accreditation project in 2015. There was a risk that we’d go from Level 2 to 4, but three years ago, we went to Level 2 and are now at Level 1.” He says that when you’re refining the scorecard and you want to go from 95 points to 103 points, “Decimals start counting. You just look at what’s got to be done and you do it.” Who better to chase the decimals than a CFO? “I was quite involved for three of four years heading it up, and I am now head of the procurement pillar. In this space, we are trying to grow new businesses and support smaller businesses. We take in interns, some of whom are disabled people – not for the points but because we are fortunate enough to have an organisation that’s growing, so we can absorb disadvantaged people into the group.” When Hannes started with Afrocentric in 2010, the finance team was 80 percent white and 20 percent black. He’s proud to say that today, those ratios have switched through specific capacity-building efforts.

“To be progressive, you have to build the capability yourself. People always want to go out in the market and buy talent, but I’ve seen it so many times that you will lose those people in a couple of years. So we’ve taken eight years to get guys that were credit controllers to be financial managers. We’ve developed them quite a lot, and they remember that. They are committed to the group based on what our inputs to their development have been and that’s why they mostly want to aspire further in other disciplines in our diverse group. For me it’s been a great journey.”

Afrocentric is also registered on the Saica accreditation programme, to take people internally from their B.Com studies all the way into CA. The first three CAs will be graduating in October this year, and a new allblack intake is coming on board. Afrocentric also has an internship programme, taking in more than 100 graduates a year. “Graduates need a lot of IT skills, so we take people with a basic IT background and we put them on further development. The costs of buying IT skills when young professionals are 26 to 30 years old are very expensive compared to

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developing them from 20,” Hannes says. Another aspect of the company’s B-BBEE success is that it has embraced supplier development in industries related to theirs. “Big IT companies were doing a lot of our desktop support, but now we’ve created and empowerment company to provide this service, headed up by a black IT professional that previously worked for us.” Similarly, in their Pharmacy Direct business, there’s lots of courier work to be done, and they have set up supplier development programmes through which new and smaller courier companies are created and given the work which was first all done internally. Hannes is always on the lookout for further opportunities.

Hannes himself spent five years in the operations, in the claims assessing environment, the commission environment and in scheme finances. “I got to know the business. When people are talking about IT systems, I know how the transactions work and what the solution could be, and I can give the finance view on that. I am promoting this with my finance guys. I tell them not to sit behind their desks, but to get out of the finance department and go and have coffee with the other colleagues. It takes extra time, but it ultimately buys respect, and opens up all types of discussions when it comes to the budgeting and cost-cutting phases.”

“It excites me to come up with new ideas every day about how to optimise things.”

“I’ve been personally involved in a new travel solution. A female entrepreneur came to us saying she was developing a new travel platform that makes travel booking in South Africa a lot cheaper, and can we support her with the benefit of being on a new platform for free. I am quite involved in a lot of these initiatives to help guys out. That’s been the spirit behind getting to Level 1.”

About winning the Transformation Award, Hannes had the following to say: “Winning the award for developing my finance team over a period of eight years is really gratifying and they were the first colleagues I shared the award with the following morning. The satisfaction of having seen many young professionals join the finance team and develop into seasoned commercial businessmen that have advanced further in the group is what gives me the ultimate kick.” He says that the award has also motivated him to share many of his experiences as a finance executive with other young finance professionals outside of the group, and that he looks forward to doing the same at the Finance Indaba in October as well.

Getting to know the business and the CFO Hannes is a strong believer in the value of broad exposure within the organisation, which reflects his own career path to CFO, and he encourages others on the finance team to garner as much business experience as possible. “I always say, ‘get practical’. Get involved in the core business. You need to know what the ticks are behind a number, behind a product or behind a client. Because in that way you can add value.”

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Hannes says the role of the CFO is to contribute to the profits of the organisation through cost and revenue decisions. “It’s not enough to say you know what we need to do to reduce costs or increase revenue. Once you start climbing into and understanding the environment of your colleagues, you get respected for trying to understand the problems they are facing and can suggest solutions.”

He believes that emotional intelligence and respect for what makes others “tick” gets a CFO further than facts alone. “I have so often seen a decision made, not on information, but based on the upfront trust that the board or decision makers have in a person, and their track record. Of course, this is supported by the information being presented.” He says that nothing beats the basics of prudent accounting, cashflow management, clean reconciliations, and accurate reporting and forecasting. Asked about his future ambitions, Hannes says that one always aspires to greater things but that for now, he’s happy where he is, and his goals are around the business. “I want to double or triple the market capitalisation of the group through various acquisitions and growth initiatives.” In terms of his home life and leisure time, Hannes has a teenage son and daughter. His view is that the worklife balance needs to be flipped around so that your personal friends, sport and hobbies give you energy and innovation in the workplace. For this reason he is an avid daily supporter of his bootcamp class in gym and on weekends plays “fairly” competitive tennis. He says that marriage and kids’ activities keep him quite busy, and he enjoys adventure sports on holiday. l

BOOK YOUR SEAT NOW FOR THE OSCARS OF FINANCE CFOAWARDS.CO.ZA | 14 MAY 2020 | JHB To sponsor an award or to buy a table, contact John Deane (jdeane@cfo.co.za | +27 82 570 9482)

Plan B Quit to win The day that Debbie Ransby secured the permanent position of MD of Takeda, she started making plans to leave. She shared the story of what led to this revelation, and how she’s since brought balance back into her life, with Joël Roerig.

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Wow, you were brilliant!” In the soulless corridors of a Dubai office, Debbie Ransby’s Italian boss appeared to pay her a big compliment that evening. Debbie had just aced a presentation that turned out to be a final job interview with the Italian’s superior that would see her being promoted from FD to MD for pharma giant Takeda in South Africa, a position she had wanted badly for the 11 months she had been acting in the role. But the

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boss’s comment spurred a very different turning point than that. “He made the comment as if he was surprised I had done so well during the presentation,” recalls Debbie. “I felt insulted.” For nearly a year, Debbie had fulfilled both the role of FD and acting MD. For nearly a year, she had cultivated a collaborative and inclusive culture, boosted sales and productivity and developed an ambition that she didn’t know she had when she won the

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BALANCE

Debbie with her fellow award winners at the 2017 CFO Awards

Moving into Africa Award at the 2017 CFO Awards for her turnaround success with Takeda in Egypt. In that period she had three different Dubai-based bosses, all with different nationalities, all men. “When he told me I was brilliant, it was like he – and all the other men before him – wanted me to fail. And I thought: What am I doing with my life? Clearly my boss is not in my corner. I am in Dubai, while I am missing a school event for my daughter in Johannesburg. It was a day of big personal triumph for me, but it was bittersweet. I felt sad and lonely.” On the day that Debbie secured her future career as MD, she decided to resign from Takeda, which she eventually did half a year later. In this interview she reflects on the lessons of her time as an FD, the exhilarating period as an MD and her newfound happiness as a business coach, focusing on female finance professionals in particular. And she explains that sometimes, even when you are on top of the world, you have to quit to win.

Time for reflection “Very often we don’t look back and celebrate what we have achieved,” says Debbie, looking more relaxed but as focused and precise as she did before in her FD role at Takeda. No longer is she combining an acting MD role with a caretaker FD role, studying business coaching part-time and running a – largely nocturnal – cake-baking venture. As a full-time professional

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coach, she has time during the day for "mommy duties" like baking and knitting and – significantly – reflection. “Winning the Moving into Africa Award at the 2017 CFO Awards was very unexpected,” she says. The prize was an acknowledgement of an achievement in Egypt that was extraordinary in itself, but extra special because it was accomplished by a South African woman – although Debbie didn’t believe in gender obstacles at the time. In a business environment where she was purposely being provoked and having her outstretched hand refused by male colleagues, she stayed calm and collected – and turned the Egyptian pharmaceutical business from a complete mess into a well-performing operation. “When I won the award, I had been with Takeda for nine years,” recalls Debbie, who still looks back at her Egyptian tenure as “tough, really tough”. Not only did the CFO Awards give Debbie an opportunity to treat her finance team to an incredible evening, it also gave her the opportunity to “reflect on where I was and to think about the future”. “The CFO South Africa community also provided me with a new network and opened a lot of doors. I wondered if it was time for a bigger finance role or a bigger role at Takeda,” says Debbie. Not long after the awards, Takeda’s South African MD left to join competitor Acino and Debbie was asked to step into the role in an acting capacity. “An MD role had never been on my radar,” she admits. “I liked finance. It was

a safe space for me. But this was the best thing that ever happened to me.”

More than just the numbers Given the fact that now, two years later, Debbie doesn’t work for Takeda anymore and is neither an FD nor an MD, that might sound a bit strange. But the truth is that Debbie started discovering that she had a lot more value to add to people and organisations than “just” numbers and data. “As acting MD, I worked very hard on the culture of Takeda in South Africa. We worked in a collaborative and inclusive way – there was no such thing as a stupid question. I knew the names of all 110 employees. I absolutely loved it.”

“What if you don’t get appointed MD?” “I didn’t want to go back into a similar FD role,” says Debbie. “I realised I didn’t have a plan B.”

Making Plan B A few months earlier, the Ransby family had gone through the trauma of a nasty break-in. In the aftermath, Debbie had been advised by a child psychologist that her children were coping fine, but that she herself needed help. “I went to get that help and the psychologist helped me enormously. I thought to myself: what an amazing thing if you are able to influence someone’s life in such a positive way. I thought about ways I could do something similar and that is when the idea of business coach came up.”

“An MD role had never been on my radar. I liked finance. It was a safe space for me. But this was the best thing that ever happened to me.”

That didn’t mean Takeda had turned into a cuddle corner. Having tasted the champagne, Debbie wanted the MD role “badly”, she now concedes, and she was dead set on making a success of it. “I restructured the sales force, which proved to be extremely successful. Leadership is all about boundaries. I expect very high standards from myself. My colleagues know that and see that. And it rubs off.”

Debbie acted in the MD role for a month. And then another. And then nine more. “I did interviews. I performed. But I was given all sorts of reasons that nobody was appointed. Looking back, I should have pushed harder, but I was accommodating and patient. I was also told repeatedly that my boss had met with excellent external candidates. I had lost confidence in my abilities.” In the background, Takeda was busy acquiring fellow pharma giant Shire, which was leaked and led to significant anxiety for employees. At the same time, Takeda’s ‘regional’ office in Dubai, to which Debbie reported, went through a merry-go-round of three Area Heads in quick succession. Debbie learnt that in periods of instability, like a pending merger, instability is deadly. “If something needs to happen, do it immediately and do it transparently. People don’t like change, so it is better to do it quickly.”

So there was Plan B. Debbie started a course to become accredited with SA Business Coaches and loved the “positive space” it introduced her to. “It allowed me to stop to think. That is critical for everyone. Women sometimes struggle to do this. Two years ago I would have said that there is no such thing as a glass ceiling and that everything comes down to hard work and merit. In hindsight, I had blinkers on. It was a useful luxury for me to have those blinkers on, but they were still blinkers. For men, a ‘fake it until you make it’ attitude is more common, more accepted. It is easier.” Then, 11 months into her tenure as acting MD, came that fateful trip to Dubai, where Debbie finally shattered that glass ceiling – only to realise that her future was not with Takeda at all. “I believe everything happens for a reason,” says Debbie. “I saw the culture starting to change. There was a lot of emphasis on ‘lean’ and ‘agile’, which was Shire’s strength, and very little focus on people, which was the cornerstone under the success of the South African team. I saw the writing on the wall.”

The status quo was not only bad for Takeda but also for Debbie. “I couldn’t recruit an FD and was left in both functions, which was wrong for corporate governance reasons alone. It took a toll on my health and my family. I was never around.”

As Takeda and Shire announced their global structure and strategy, and even audaciously announced a day of celebration on 8 January 2019, employees were still in complete darkness about their own future. “It was shocking,” says Debbie. “We received a lot of communication but it didn’t say anything. It was not addressing the things people were concerned about. It created insecurity and the productivity went down.” By that time Debbie’s mind had been made up.

Adcock Ingram Prescription Division MD Ashley Pearce, a long-time mentor to Debbie, then asked her:

Never the impulsive person and not keen “to be silly about it”, Debbie still took her time to prepare for her

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move away from Takeda, into the great wide open. “I studied part time on top of two jobs and I knew I was onto something special,” Debbie reflects. “It was a journey of self-discovery. I always said my children are my number one priority, but that didn’t show in my behaviour as I performed two roles at Takeda and spent a significant amount of time away from home.” In March of this year, Debbie eventually said goodbye. “The farewell was very emotional. I walked away from a group of people who said ‘please don’t go’ and I felt I was letting them down.” Debbie says she left on a good note and harbours no ill feelings towards Takeda. Personally, though, she has come out much stronger, proving that quitters can be winners.

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Her brand new business is called Connected Coaching, which focuses on assisting clients wanting to make the transition out of audit, as well as climbing the career ladder in the corporate environment. She also helps working moms manage the demands placed on them in both their professional and personal space, and assists clients with challenges around gender inequality. “I still get up, dress properly and put my make-up on… but I can sleep at night – because I can bake my customised cakes during the day. My bond with my girls is so much stronger. I fetch them from school and do all sorts of mommy duties. I have also started knitting scarves, which is very therapeutic. I was on the brink of burnout. Now I feel like I finally have found the balance. l

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Keeping it

real

Alexander Forbes Group CFO Bruce Bydawell recently took a sabbatical to spend time working on European farms. As soon as he was appointed CFO on his return, he started planning for his succession by a black South African. He has a singular view on his own role as CFO, and on life in general, which he shared with Georgina Guedes.

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ruce Bydawell came to the position of Group CFO at Alexander Forbes with his own unique combination of many years of experience in the financial world coupled with a willingness to try something new. Bruce, whose career has spanned 25 years, returned to Alexander Forbes following a sabbatical in 2018 when he and his wife Janet spent four months in Europe working on farms. When asked why he had chosen to do this, he explains his love of travelling and broadening his experiences help give him a clearer perspective on life and what he values most. “There are so many ways to live and so many ways to be. You can get caught up in a job and lose that perspective. The experience restored my perspective and gave me a deeper appreciation of things – it reminded me that I shouldn’t take things too seriously or get caught up in my idea of the way things should be.”

They moved on to cows in Ireland to sheep in Devon and after that, a well-earned rest on a Greek Island. It was in Greece that Bruce was informed of the significant changes happening at Alexander Forbes.

Alexander Forbes calling “They called me and asked me to help out over a tough period. When I was later offered the role of CFO, the board and I agreed that my successor would be a black South African since transformation is integrally linked to the success and future of Alexander Forbes. I’ve been very clear with the board about this and they have supported me on this crucial objective, given that it is top of their agenda as well. I feel so lucky to have convinced Rachel Nkgodi – currently a partner at Deloitte – to join me as the deputy CFO. I am excited about the role that Rachel will play within the finance function and value and insights she will bring to the greater organisation. She and I are committed to her being set up for future success.”

“There are so many ways to live and so many ways to be. You can get caught up in a job and lose that perspective.”

Bruce is clear about the role of a CFO and the integral position it plays in any organisation. He says a good CFO is someone who has a strong handle on the financial workings of the company coupled with a holistic understanding of the company strategy. To do this it is critical to have the right people supporting you. “Without the right support, the ability to analyse data and project the financial picture of the organisation becomes a challenge”.

He is a firm believer in the power of integrity, which, he says, gives people something to stand by and is the basis on which trust is built. “I also think that a good CFO is a calming influence. Executives can get excited about their deliverables. But I think that the CFO has to think calmly and put the decisions in plain sight with less emotional thinking.” The first month in his working holiday in Europe was spent taking care of a smallholding in Tuscany, where there were chickens to feed, vegetable gardens to maintain and plenty of wood to be chopped. “The work was hard but the rewards enormous,” he says. After four weeks in Italy he and Janet moved on to a dairy farm in Ireland where there were 123 cows to be milked twice a day and beautiful green fields to maintain. “It was inspiring to see how hard people work and how deeply fulfilled they were by their work.”

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For now, Bruce has his hands full with implementing a revised strategy for the business and – at the time of interview – finalising year end. “The new strategy necessitates organisational change to enable the group’s success and involves, for example, unifying the consultants and advisors from each of the four business units to deal with clients holistically. This requires leadership at senior and middle management levels and ongoing engagement of our employees.

Selling the insurance business Mergers and acquisitions are included in his mandate and the sale of the short-term insurance business has also been keeping Bruce busy. “It’s been a totally open and well-governed disposal process. We put out an information memorandum to a number of interested parties. It is a great asset, and we were pleased with the interest shown. We have received non-binding indicative offers and will select less than a handful to go to the next phase. Part of the discussion will be around what they are planning to do with our staff and clients, because we’ve made it very clear the protection of these stakeholders is high on our agenda.”

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Time to relax Finding new perspectives through travel is something of a theme in Bruce’s life, and he has combined this passion with sport. A previous CFO at Alexander Forbes got Bruce into running international marathons. In 2007 he invited Bruce to join him in running the Berlin Marathon, and this gave Bruce the motivation to commit to long-distance running, which he loves. Since then he has run New York, Moscow, Warsaw, Lisbon and is training to do the Athens and then Soweto Marathons in November this year. Bruce is also an enthusiastic squash player and has played Gauteng League Squash for more than 20 years. Commitment to his family forms part of his core value – despite the enormous demands on his time, he is home to have a family dinner most nights of the week. “The challenge that I face is to remain centred in who I am, rooted in my faith, my integrity and my commitment to my family,” and in the words that he has spoken to each of his three children on many occasion: “Just keep it real!”

“I am at the cutting edge of decision-making. I work with people who are passionate about this business and have been here a long time.” The decision to move away from insurance was not an easy one, he says. The business has delivered growth in the past with good prospects. “But essentially, we were a small fish in a very big pond with lots of regulatory requirements becoming the norm in this industry. If we were to carry on with the business – which has only three percent of the market – we would have had to invest substantially in systems and people, and we would be playing against some of the much bigger players with bigger balance sheets.” This, he says, goes against what the shareholders want from the company, which is to stay “capital light

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and focused on what we do best, to provide advice-led integrated retirement solutions and holistic wealth management. Since our delisting in the private equity days, we’ve done a number of corporate transactions, but there’s a lot of complexity in everything that we’ve done, and now it’s time to simplify, refocus our efforts on the core businesses and grow from there.”

Building the benefits The core businesses that Alexander Forbes is focusing on is consulting, administration and investments, which Bruce says is a challenging industry given that it is largely dependent on the market and the economy growing. “That’s why we need consistency and certainty in what we do. Part of our strategy is predicated on the potential consolidation in the employee benefits industry, so we need to simplify and make our processes more accessible, gain scale and encourage a better savings culture in South Africa.” He points out that not many people in this country save enough for retirement, even though they are starting to earn more. “The emerging middle class has its own pressures, including a wider family that they need to

“We need to simplify and make our processes more accessible, gain scale and encourage a better savings culture in South Africa.”

support, so their ability to put money aside and save is limited. We have to try and be relevant within that environment, to try and help people build wealth.” Mercer, the global human resources consulting firm, is Alexander Forbes’s largest shareholder at 33 percent. “Our strategic partnership with Mercer presents us with unique opportunities that benefit our clients and our people. Through the strategic alliance in our investments business, we have access to their skills and expertise and their global portfolios – as they have to ours – as well as access to their economies of scale. We now offer a better offshore value proposition at a better price to our customers. Further, we have enhanced our value propositions for the South African market through accessing the global expertise of Mercer’s research capability.” They have also partnered with Mercer to better serve clients in Africa through the ARRIVE solutions platform. “ARRIVE is a pan-African benefits solution across health, wealth and career that aligns to local regulations and is based on global best practice. This solution is the first of its kind in our industry and responds to our multinational clients who have challenges in developing appropriate benefits that work

across all countries in which they operate. It is a client-led strategy which is underpinned by our best advice and delivered through an integrated and seamless distribution platform across Africa.” He says that so far, there have been some early successes.

It’s a great place to be Bruce says he loves his job, although he admits his wife is concerned about his health. “But I am loving it. I am at the cutting edge of decision-making. I work with people who are passionate about this business and have been here a long time. I love the business and it’s a great place to work.” With the tough years that the company has been through, one of the things that the executive team has prioritised is improving staff morale. Bruce believes you can feel the difference, and a recent engagement survey revealed that there is a definite improvement in outlook and culture. “You don’t need a survey to tell you about it. You can feel it. But it’s nice when a survey confirms it and you know you’re heading in the right direction.” l

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MAKING THE BUSINESS CASE FOR TECH ASSET RENTAL InnoVent was founded in 2003 by two CAs who saw a gap in the market for an asset rental business. The trick has been convincing the South African market that there’s enormous financial benefit in leasing tech. By Georgina Guedes

ccording to Zakhe Khuzwayo, the founder and financial director of InnoVent, the asset rental company’s motto is, “If it has an on button, we will finance it.” While this approach usually extends to computer equipment, the company has financed such obscure technology as an airborne camera that attaches to an airplane, and base stations for some of the cell phone companies. While technology asset rental makes financial sense, Zakhe says that South African corporate (and consumer) culture can sometimes make the model a hard sell. “South Africans tend to want to own things. We’ve been taught that debt is bad, and that we must own our assets and pay off the debt as quickly as possible.” However, Zakhe points out that this line of reasoning makes sense if you own a house that you live in for 20 to 30 years, and then endow to your children. “But when it comes to technology, that’s not the case. In a constantly changing environment, you are getting more powerful, more efficient, more cost-effective

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equipment or solutions. It doesn’t help you to have paid off a laptop that you bought two years ago, because in another two years, you have to buy a new one with better battery life and new technology. Technology is a commodity that you want to keep pace with rather than own and sweat.” This approach to technology assets is prevalent in the US, the UK and Europe, where people rent everything from technology to vehicles. “They lease technology for three years and once they’ve had use of it, they give it back and get a new one,” Zakhe says. “We work on a refresh cycle of two years for mobile devices, and three to four years for non-mobile devices. You always need to transition from old to new, whether you own or rent.” In the South African market, InnoVent have done the calculations on how much their customers can save by renting a laptop or a desktop as opposed to buying it. “It saves between 15 and 30 percent in terms of net present value cost. These numbers are supported by independent organisations like Gartner,” says Zakhe, who is a CA.

“Over time, you’ve forgone the opportunity cost of using that money elsewhere in your business or investing it and getting a return.” InnoVent’s leasing fees include insurance, maintenance and a warranty. At the end of the cycle, InnoVent will carry out all asset disposal and data wiping so that no company information gets out into the public domain. It will then be repurposed and introduced back into the market of secondary users – often schools or small businesses. And after it’s second life, when Zakhe says “It is generally worse for the wear, it will be disposed of in an environmentally friendly manner.”

Founding and growing InnoVent InnoVent was founded in 2003 by Zakhe and a friend DJ Kumbula, also a CA. They had identified a gap in the market for tech asset rental. “This was shortly after Y2K, when a whole lot of companies had had to upgrade equipment, spending vast sums of money overnight with no alternative,” Zakhe recalls. The environment made it easy to

present the business case for asset rental. “It wasn’t that difficult to show that it was preferable to pay R3 million a month, rather than paying R100 million in one go. The cashflow advantage was obviously immense. So we educated our customers that there is an alternative – to lease with an upgrade path.” Zakhe qualified as a CA with PwC in 2001, then worked for an Australian leasing company. After two years, he and DJ founded InnoVent. Growth, apparently, has been good at over 20 percent per year. “From a zero base, we now have assets of over R3 billion under lease,” Zakhe says. In South Africa, they have 120 employees, roughly half of whom are techies, and the other half of whom are admin. They now have subsidiaries in the UK, Zambia, Zimbabwe and Tanzania. “The continental business is doing very well. A lot of our repurposed equipment from South Africa gets exported to the rest of our African branches, where there are lower spec requirements – mostly schools or small businesses. The credit market there is not so developed. You don’t want to put in a new device

Zakhe Khuzwayo, InnoVent founder and FD, says tech asset rentals save companies between 15 and 30 percent

that costs R10,000 because the exposure to risk is so much higher, so you’ll put a R3,000 device in that environment.” Generally speaking, the first-use client profile is blue-chip companies with user bases of 1,000 and upwards. “Then it makes sense, because the scale of savings you’ll make with 1,000 users as opposed to 10 users is much higher.” Their clients choose which assets they require, from which suppliers. InnoVent doesn’t influence their decision, they simply finance the assets once the decision has been made. InnoVent will then structure a lease of the asset over its useful

life. InnoVent does, however, have a relationship with Lenovo, and are their financial service partner. InnoVent also has a very active internship programme, bringing in between eight and 10 graduates – not necessarily of a technology degree, but also from law or accounting. “We look for the right attitude, personality and culture fit, and then we train them up. We generally keep our interns. We spend a lot of time and resources training them up from scratch, so we don’t like to let them go,” says Zakhe. “They might also end up in business development or sales, depending on their background and interests.” l

To find out more about how InnoVent can help your business to realise a 15 to 30 percent saving on asset expenditure, speak to one of their consultants today at info@innovent.co.za

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ANGELA PILLAY: HAPPY TO BE TELLING SASFIN’S “GOOD NEWS” STORY

One year after she was appointed as Group CFO of Sasfin, Angela Pillay chatted to Georgina Guedes about being part of CEO Michael Sassoon’s new vision for the bank, and being able to deliver an excellent set of results in her first year.

ngela Pillay had a lot of hard work to do in her first year as FD of Sasfin. Having reached 12 months with the company in March, she was happy to be in a position to deliver a positive set of annual results in her anniversary month. “It really was hard work, being a new FD, working with the new auditors, and learning about Sasfin at the same time. But by the time we were preparing these results, I was more attuned with the way things were going.” It helped that she was in a position to “tell a good news story”. “Earnings are up, even if off a low base, and the team has put a lot of effort into the key elements of the business to make sure that it’s working for us.” Sasfin has been through a major management reshuffle with Michael Sassoon, the son of the founder and former CEO Roland Sassoon, having taken the helm as CEO (with JSE and Reserve Bank approval), and appointed various executives to support his new

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strategy for the business. Angela was one of those appointments and says she’s part of an impressive team. “In H2 of last year, we were in the final throes of changing the bulk of our executive team. We had a new internal auditor, a new head of compliance and a new head of risk – all seasoned individuals.” The restructuring was at exco level, but the management team has also beefed up the talent at the second tier, to drive the sales and distribution side of the business. “We’re going to reap the benefits now as they settle in and understand the business, the operating model and the strategy. With a bit more investment in the front line and technology, we believe we’re really going to start seeing that revenue come through.”

Finding her finance feet Angela herself has an impressive CV, having served as

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the CFO of LibFin, and being previously employed at Barclays and First National Bank. This culminated in over 15 years of experience in designing, leading and implementing a broad range of initiatives to support business strategy. She is a CA (SA) and has a master’s degree in Financial Services. However, despite this depth of experience, Angela says she didn’t want to study finance – and didn’t even think she’d be good at it. “I had a passion for interior decorating, going back as far as I can remember. It seemed sexy. But my dad, who’s quite old school, didn’t get what all of that was about. He said I had to go to university and study, and when I’d made enough money, I could be an interior decorator.”

and all those wonderful things. I loved understanding that this is not something tangible, but it exists.” She continued into various roles at FNB, serving for a time as the CFO for the Commercial Bank, where she was for four years. She took maternity leave, and then wanting a change, moved back into the centre, working on balance sheet management for the thenCFO of FNB, Harry Kellan, who is now the Group FD at FirstRand Bank. “He’s been a mentor to me over the years.”

“Almost every day, I thought I was going to fail miserably, yet it inspired me to do better and to make a difference.”

One of her sisters was studying law, and the other was studying accounting, so Angela thought she’d follow in the finance sister’s footsteps and see how things worked out. “I grew into it. I found my passion at articles, which I did at Arthur Andersen. It was my first real job at a place I absolutely loved the wonderful people. I learnt so much about clients and business, and not just about the technical aspects of finance. It wasn’t just debits and credits. Yes, there was compliance, and yes you have to be IFRS conscious, but I realised that the numbers tell a story.” She says that she was hooked when she realised that the income statement and balance sheet deliver a narrative that explains how the business is doing. “That’s what I love about finance. It’s not just a number; it explains something or interprets something. And it’s structured. Every day is a different day, but finance can tell you what you need to do from day one to day 20, and what you need to deliver. No two days or two months are the same. It’s always evolving and expanding.”

Career moves After the KPMG takeover of Arthur Andersen, Angela took up a position in the new firm, but she wanted to get into financial services, so she moved to FNB, which is where she says her love for banking started. “My first job at FNB was in home loans – this is close to 15 years ago – and I learnt so much about funding and credit

She then moved on to Absa, where she became CFO of the Corporate Bank and had international exposure through Barclays. “I looked after corporate SA as well as the “Rest of Africa”, as it was known at the time. It was hard work and challenging but oh so rewarding. Out of all the roles I’ve held to date, that’s the one I am most proud of. Almost every day, I thought I was going to fail miserably, yet it inspired me to do better and to make a difference. I built good relationships with people and changed the face of finance at least in the corporate space. When I left, I was able to say that I had left something behind that was better than how I found it.” She moved across to Liberty as the CFO of Libfin, for a very short tenure because she was soon approached for her current role as group FD of Sasfin. “The opportunity to be a group FD doesn’t come around every day. It was the opportunity to work in a smaller bank, and having met Michael and Roland, I was inspired by their vision of where they want to take the business to. The BEE transaction had just happened, and my role was going to be to create a new vision from a strategic finance perspective.” However, it was a tough start for Angela, and she has made significant changes to the management team in her first 12 months. “Restructuring the team, while at the same time going through a new audit, while at the same time getting to know your board and senior leadership is really a baptism of fire – but in a good way. I learnt so much about my own inner strength and ability, and also about my team, and how it’s possible for people to work together and rally. It’s been a phenomenal journey for me.”

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Leadership and learning Angela says that there are a few positions still to fill on her team, but that her vision for creating a “best practice finance team that are true partners to the executive leadership” is on track. As a leader, she says that she tries to recognise her own blind spots and has gone on leadership courses to help address these. “I am a great believer in mentoring and coaching, and I’ve done a course to improve my abilities in this area, because I believe that a lot of what I do is about building relationships. I’ve also done a few leadership courses, which I loved. They gave me a different dynamic on leadership and the ability to take people along on the journey with you.” She says that some of the things she learnt through these courses include learning to listen, asking the right questions and giving people the ability to speak their own minds. “The biggest lesson I have learnt – especially since I am a single mum to a seven-year-old – is to not try to solve everyone’s problems for them. Give them the opportunity to go on the journey for themselves. You’re just there to facilitate the process. This was such a powerful lesson for me, because I just want to solve everyone’s problems and give them the answers I think they should hear.” She says that she is a collaborative leader who tries to paint a picture and sell a vision, then have people who are really passionate about their craft buying into it. “I am not a micromanager and I am not detail oriented, but I know how to get from point A to point B, and how to work with people to get there. You have to make tough decisions along the way, and try to do that with as much humility and empathy as possible.” As many qualifications as she has on her CV, she believes in surrounding herself with people who are smarter than she is. “If you’re the brightest person in the room, then you’re in trouble.” Despite her obviously high levels of commitment and focus, Angela says that she has to find the time and space for humour in her working day. “I love to laugh. If I don’t make jokes, I get more stressed and find that I don’t love what I do. I have to find a way to make it all fun.”

A quiet family life As a single mother, Angela’s priority is making time for her daughter Ava-Mae. “All my quality time is spent

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“That’s what I love about finance. It’s not just a number; it explains something or interprets something.” with her and my family – my parents and my sisters. I don’t spend much time with all of them in the week, so I love catching up during the weekend and going to the park or watching a movie with Ava-Mae. I am very much engaged around spending time with her.” She says that she has a “phenomenal” support system, with a very loving nanny helping out at home, and a mother who lives close by and collects her granddaughter from school, and can step in if Angela is working late. “If it’s a busy time for us, my mom will watch over her. I’ll come home to put her to bed, and then start work again once she’s asleep.” Ava-Mae is no stranger to Sasfin and often comes into the office with Angela over the weekends when there’s work to be done. “She’s so in tune. If the phone rings and it’s Michael, she’ll say, ‘Take the call. I’ll be quiet.’ She knows how to be in the background if it’s a work call. But she’s also not afraid to tell me that she wants some of my time to herself. She knows her mind.” Angela bought a new home close to Sasfin and, with the help of a professional, got to try her hand at her long-held dream of interior decorating. But while she enjoyed having the opportunity to express her creative side, she realised that she prefers the world of finance. “I think my dad was right that it wasn’t the right career for me. There was some wisdom there.” She says she would love to find the time to read again, but with regular 700-page board packs to get through, “I never want to read anything else.” Before falling pregnant, she used to do yoga “like a crazy person”, and meditation. She’s trying to get back into meditation, calming her mind for 15 minutes before she falls asleep at night – but she says that gym is just wishful thinking. She and Ava-Mae have a miniature schnauzer, Bitzer, who fits into their little family very well, and keeps them occupied and fit. “We walk to my parents and the park with him. Generally, we have a very quiet, family-focused life.” l

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3 key themes in worldclass reporting & communications Earlier this year, Nedbank received a letter from the JSE acknowledging the banking groupâ&#x20AC;&#x2122;s high standards of financial reporting for the year ended 31 December 2018, and in particular, its IFRS disclosures. These are the insights behind achieving recognition for reporting at this level. By Raisibe Morathi

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t Nedbank we take great pride in our reporting and communication to shareholders and other stakeholders. For us it is more than just complying with financial and regulatory requirements; it embraces what we do, how we make decisions and how we tell our value-creation story. Transparent reporting has never been more important than today, with the macroeconomic environment remaining challenging and uncertain, and corporate scandals having eroded trust in South African companies, both listed and unlisted. As a CFO community we need to focus on three key themes when we think about communicating with the external world, namely credibility of financial reporting and good governance; moving beyond financial disclosure; and communicating to a broad set of stakeholders. Let me share a few thoughts on these.

Credibility and good governance Corporate scandals and misrepresentation of financial results have dented the good reputation of South African corporates among local and international investors. As I reflect on the conversations we have had with the international investment community, there has been a marked deterioration in the perception of corporate South Africa over the past five years or so. No longer are we seen as the poster child of good governance and disclosure in emerging markets; questions are now being asked about the credibility of financial disclosures, as well as accounting and auditing practices.

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To regain investor trust, the finance community needs to be more open and transparent in their disclosures and embrace balanced reporting. To achieve this, we have to ensure that our organisations have appropriate oversight and world-class governance practices in place and that our finance teams are skilled and supported by effective systems that facilitate clear and insightful internal reporting to ensure one version of the truth with external reporting. In this context I am extremely proud that Nedbank recently received a letter from the JSE acknowledging Nedbankâ&#x20AC;&#x2122;s the high standards of financial reporting for the year ended 31 December 2018 and, in particular, our IFRS disclosures. We are humbled by this response.

Moving beyond financial disclosure Traditionally, a key role of the CFO was to oversee financial disclosures. However, in this ever-changing world, supporting financial reporting with relevant non-financial disclosures has become more important, particularly when it comes to the drivers of value creation on the one hand, and environment, social and governance (ESG) issues on the other. While Nedbank is regarded as a leader in integrated reporting in South Africa, as acknowledged by multiple integrated reporting awards over the past few years, we continue to challenge ourselves to set a new standard and raise the bar each year. We embrace the International Integrated Reporting Council guidelines, but more importantly we ensure that we address the key issues in which the investment community is interested.

“In this ever-changing world, supporting financial reporting with relevant non-financial disclosures has become more important.” Integrated reporting is beneficial to any organisation, since financial disclosure cannot be credible without being underpinned by integrated thinking to create a golden thread binding together strategy development, target setting, business planning, measurement and tracking of performance, reward and recognition, and eventually external reporting. Good disclosure and reporting is not limited to what is published; it should extend to engagements with the investment community. As management we dedicate time to meaningful interactions with various stakeholders throughout the year. These are important opportunities for us to obtain feedback and answer questions, but also for stakeholders to assess the quality and depth of leadership – a key investment consideration. While these engagements are common practice for the management teams of companies, at Nedbank we have extended these engagements to ESG roadshows, during which our chairman and lead independent director, meet with shareholders to discuss environmental, social and governance matters. Through these engagements over the past six years, we have listened, debated and also received valuable feedback. This is clearly evident in the outcome of our annual general meetings where resolutions, in particular about remuneration, receive more than 98 percent votes in favour.

Communicating to a broad set of stakeholders While we understand that integrated reporting is primarily aimed at shareholders, we have seen that our reports are widely used by multiple stakeholders, from

potential employees and clients, to prospective shareholders, ratings agencies, suppliers, non-government organisations, regulators and society at large. And while we ensure one version of the truth, our reporting and communication is attuned to each group of stakeholders. As such, we always keep our staff informed and before we meet with the investment community (after the release of our SENS announcement) we have a live and interactive broadcast with our employees. Sell-side analysts want to get their reports out as quickly as possible and we engage based on insightful presentations and one-on-one meetings. Long-term shareholders are not as time sensitive and we usually give them the opportunity to digest sell-side analyst reports, so that subsequent discussions can focus more on the value creation drivers than on shortterm financial nuances. Lastly, as a regulated industry we also keep our primary regulator, the Prudential Authority at the South African Reserve Bank, informed of our financial performance – a practice that has now been embraced by many of our peers. We are proud to serve as a good example of excellent financial reporting and communication in South Africa and as CFO of Nedbank I personally drive continuous improvement and open and transparent disclosure. A special thank you has to go to the Investment Analysts Society and the investment community for recently voting Nedbank Group as a leader in corporate reporting in the banking sector. We hope to inspire the highest quality of corporate reporting industrywide. In so doing, we will be playing our part and truly delivering on our purpose – to use our financial expertise to do good. l

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FUTURE

BROLL PROPELLED TO GLOBAL REAL ESTATE STAGE THROUGH CUSHMAN & WAKEFIELD PARTNERSHIP A partnership between commercial property services company Broll and global real estate services firm Cushman & Wakefield will support the expansion of Broll’s footprint into North Africa and the Middle East, providing real estate services to tenants and helping them to optimise their spend. Ray Mahlaka spoke to Malcolm Horne, Group CEO of Broll Property Group, and Ken Gerber, the MD of Cushman & Wakefield | Broll, about the intricacies of this deal and what it will mean for tenants on the African continent.

roll Property Group recently concluded an exclusive affiliate agreement with US-headquartered Cushman & Wakefield, aimed at covering the sub-Saharan Africa region. The agreement, which has been six months in the making, has all the markings of a successful business partnership – certainly, the due diligence process has been given the attention it deserves. “We have been on the lookout for a new international partner since January 2019. And after we participated in several roadshows, we found a lot of synergies between ourselves and the Cushman & Wakefield

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team,” said Malcolm Horne, Group CEO of Broll. Although formal talks began six months ago, the relationship and business dealings between the companies go back 14 years. The exclusive affiliate arrangement is a coup for Broll. Over the past 44 years, the firm has offered a suite of real estate-focused services including auctioneering, property management, research, valuation and advisory services, retail leasing, broking and occupier services, across 16 sub-Saharan Africa countries (including its South African home market). And collaborating with Cushman & Wakefield, which

“We have built the largest services business on the continent and we are proud of that. It was easier for us to pitch in and show Cushman & Wakefield what we have and are capable of because we already have the track record in region.” – Malcolm Horne, Group CEO of Broll Property Group Malcolm Horne, Broll Property Group CEO

is the world’s third-largest real estate services firm, easily propels Broll beyond the African continent as it will gain access to the former’s international and highprofile clients in over 70 countries. Some of Cushman & Wakefield’s real estate clients have a burning desire to expand their operations into sub-Saharan Africa and Broll will be their link to the region. “It’s a match made in heaven. We will be getting access to international markets and international clients. And we are opening up the African market to Cushman & Wakefield as well,” said Malcolm. The partnership with Cushman & Wakefield only involves Broll’s sub-Saharan Africa-based occupier services business unit. In other words, Broll’s other services such as auctioneering, property management, research, valuation, and advisory services, and retail leasing are excluded from the partnership. Ken Gerber, the MD of Cushman & Wakefield | Broll, supported Malcolm’s views saying there are synergies between Broll and Cushman & Wakefield regarding their operations and real estate strategies. “What really impressed us about Cushman & Wakefield, besides their status as one of the leading real estate companies in the world, was how similar our businesses already are,” said Ken. “From the very first meeting we had, it was obvious that we shared similar views around professionalism, integrity, client-centrism and there is an overall alignment on the direction that the market is moving in. Above all, we could see how our people

gelled with each other. I think it’s going to be a very powerful fit.”

About occupier services Occupier services is an important business unit. Broll decided to launch the unit in 2005, realising that there was an opportunity to offer tenants at shopping malls, office buildings and industrial/warehouse properties support services. In the occupier services unit, Broll works directly with tenants and not landlords – advising them on various real estate services such as introducing technological and financial data solutions to better manage their use of space, utilities use (electricity and water), collecting and paying the rental of the occupier to the landlord. As Malcolm puts it: “the differentiator with occupier services is that you are appointed by the user of space for their real estate needs. It’s about anything within the tenant space, providing service to a tenant and optimising their real estate spend.” Broll’s occupier services business unit has built a track record of working with many multinational companies that occupy real estate space. It is this track record that has impressed Cushman & Wakefield, prompting it to cement an exclusive affiliate arrangement with Broll. Cushman & Wakefield didn’t have a desire to build an occupier services business, which focuses on subSaharan Africa, from scratch. It wanted to partner with a firm like Broll, which already has exposure to subCFO MAGAZINE • CFO.CO.ZA

FUTURE have the wrong interface from the beginning with them, you can make their journey into the region more difficult.” The year 2015 was a turning point for many sub-Saharan Africa economies that relied heavily on the production and export of commodities for their fortunes. Africa’s largest commodity producers and exporters such as Nigeria, Angola, Equatorial Guinea and Algeria, whose oil proceeds account for more than 70 percent of exports, were hit the hardest and faced serious economic headwinds due to low commodity prices. However, most of these countries are on a path towards economic recovery as commodity prices have rebounded.

Ken Gerber, MD, Cushman & Wakefield | Broll

Saharan Africa and local knowledge about real estate fundamentals in the region. Underscoring Broll’s reach in the region is the fact that the group has offices in Angola, Ghana, Ivory Coast, Kenya, Madagascar, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Swaziland, Uganda, Zambia, and others. “We have built the largest services business on the continent and we are proud of that. It was easier for us to pitch in and show Cushman & Wakefield what we have and are capable of because we already have the track record in region. That’s why I think there was a synergy between both of us. They also understood that we have a good understanding of the occupier services industry,” said Malcolm.

Africa rising It’s well known by now that international firms need a local partner if they have ambitions of taking advantage of sub-Saharan Africa’s forecasted three percent economic growth for 2019 (according to the World Bank), rising consumerism, a relatively young population, and industrialising economies. These market dynamics are largely known as the “Africa rising” story. Malcolm said there is still an appetite by multinational occupiers of space to make a foray into sub-Saharan Africa. “What is important is for us to be the first point of contact for multinational occupiers. We are encouraging multinational occupiers to come into the region. If you

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Although the broader sub-Saharan Africa economy is not as strong as developed economies, Malcolm said there are still opportunities to be realised not only in the real estate services industry. “We are finding that there is a space for us to promote the international entry of multinationals that are either looking for oil or gas opportunities in Mozambique or Ghana. In Nigeria, we are finding interests from retailers in Turkey. And in South Africa, we have international retailers that are still looking to come into the country. “As a business, we need to have our key skills ready to be able to deal with inquiries from multinationals and local big users of space that want to jump into other geographies. They might want to move from Nigeria into the Ivory Coast.” The entry of international multinationals into subSaharan Africa or the expansion of domestic players further into the region is a good thing. It means that they will demand real estate for their operations, and ultimately real estate services – like those offered by Broll.

Occupier services opportunities, Africa expansion The occupier services business unit under the exclusive affiliate arrangement will be branded as Cushman & Wakefield | Broll. At the heart of the agreement is people and their real estate skills. The exclusive affiliate arrangement will see the collaboration of Broll and Cushman & Wakefield employees, working on occupier services-related and other real estate opportunities across different jurisdictions and workstreams that reach across the US, Middle East, Europe, and subSaharan Africa. After all, Cushman & Wakefield has

real estate professionals stationed at its offices in the US, broader Europe, Middle East, Asia and sub-Saharan Africa (mainly South Africa). Malcolm said the partnership is important for skills development in the real estate industry because Broll employees can benefit from Cushman & Wakefield’s larger scale. Through Cushman & Wakefield, Broll employees can be exposed to international best practices regarding the execution of occupier services. “Often, we say that we are great at what we do as Broll. But the question is; can we stand on the international stage and be counted among the best of the best?” He acknowledged that the broader goal of the partnership is to professionalise the entire property industry. “If the real estate sector formalises and professionalises, it can only be good for countries we operate in and the growth story of the continent.” The partnership is also expected to be a boon for Broll because it has ambitions to establish offices in North Africa and the Middle East. On its radar in the next few months are Egypt, Morocco, and Dubai. It will rely on the expertise of Cushman & Wakefield for its expansion plans. Depending on market dynamics and where opportunities lie, Broll might offer a full suite of property services and not only occupier services in North Africa and the Middle East. “It’s a logical move,” Malcolm said about expanding Broll’s footprint. “There are close ties between London and the continent, Dubai and the continent. A lot of people around the world are coming into various access points. Those are the two logical access point we think we can be involved in. We hope we can tell the Africa growth story. At all times, we want to remain an Africa-focused business.” Arguably, it’s not hard to see why Broll’s interest has been piqued by North Africa and the Middle East. The World Bank expects the region as a whole to pencil in an economic growth rate of 1.9 percent in 2019 compared with 2018’s 1.7 percent. Despite slower global trade growth and tighter external financing conditions, domestic factors, particularly policy reforms, are anticipated to bolster growth in the region. Egypt alone, which Broll is targeting, is expected to grow its economy by 5.6 percent in 2019, as the country’s investment is supported by reforms that strengthen the business climate. Its growth is also expected to be driven by a rise in consumer consumption. The country, which is an oil importer, has been in reform and rebuilding its economy since the political uprising in 2011, which ended the three-

decade-long presidency of Hosni Mubarak.

The South African situation Meanwhile, Broll’s South African home market is expected to record economic growth of less than one percent in 2019. Economic growth in South Africa, which is Africa’s most industrialised economy, is undermined by heightened political uncertainty, low levels of domestic and foreign investment, deteriorating business confidence, and power cuts that have intensified in recent months. The country is on the brink of losing its remaining investment grade credit rating from Moody's Investors Service. Market watchers expect political stability to return in South Africa considering that the country’s general elections, which gave President Cyril Ramaphosa a definitive mandate in May 2019, are over. But there is still a lot of work to do to stabilise South Africa’s economy and for capital markets in the country to recover. Malcolm stressed that Broll’s expansion into North Africa and the Middle East does not necessarily mean that the real estate services firm is not bullish about South Africa or that it’s turning its back on the country. He said any company that wants to grow in a sustainable manner must, at one point, explore diversifying into new markets. Broll’s diversification efforts will not reach Europe. “For us, it is about aligning ourselves with an international firm that has got reach across several continents. We can help our clients get good advice in several jurisdictions. We wouldn’t go to Europe. If we come across any Europe-based opportunity, we’d rather refer it to the Cushman & Wakefield business. We don’t have the desire to conquer the world.” While world-domination can wait, it certainly seems that Cushman & Wakefield | Broll has set the stage for conquering Africa. The synergies inherent in the partnership will doubtless yield successes on the continent as many companies expand into the region with occupier services support from this new entity. l

To find out more about how Cushman & Wakefield | Broll can support your commercial real estate needs in South Africa and Africa, contact: Ken Gerber, MD of Cushman & Wakefield | Broll, +27 11 441 4201 or via email: kgerber@broll.com. CFO MAGAZINE • CFO.CO.ZA

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DISRUPTIVE M&A: DEFINING YOUR FUTURE As part of their Breakingviews predictions for 2019, Reuters wrote (in late 2018) that “disruption will be the mother of M&A in 2019”. This reflects the growing trend of ‘acquiring innovation’, as a growth driver and a protective measure made by established corporates who are determined not to sit around and wait to be disrupted by the ‘upstart’ they didn’t see coming. By Kate Ferreira

he concept of business disruption is well established these days. Uber and Airbnb are two of the classic examples: start-ups with new technology who entered markets (taxi/ transportation and hospitality/accommodation respectively) and turned them on their heads. Not only is the technology platform revolutionary, but the operating model – connecting service providers to customers, rather than directly offering your owned assets – is too. Suddenly market leaders who were established, and frankly comfortable, were scrambling to react to the changes and compete with newcomers. This disruptive effect was so significant it led to the coining of the term “uberisation” to describe an operating model built on networked service provision. When a disruption of this magnitute strikes, it soon builds up a kind of mythology around it in media and the public agenda. You no longer need to be an MBA candidate to be familiar with disruption, or (for example) the cautionary tales of Kodak (the film photography company that famously bet against digital cameras and tumbled off its pedestal to declare bankruptcy in 2012) and Microsoft’s Steve Ballmer misfire on the iPhone (Ballmer declared in 2007 that there was “no chance that the iPhone is going to get any significant market share”). One of the common motifs of this disruption story is the outward-in structure of threats – how outsiders see an industry through new lenses and this allows them to see disruptive opportunities. But is that the only way? Can large corporates nurture fresh “lenses” and introduce innovation to prevent going the way of the business-dinosaurs?

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The acquisition model One way is through “disruptive M&A”, a growing trend globally – and one starting to gain ground in South Africa too. A recent example is US tobacco firm Altria buying a 35 percent stake in vape manufacturer Juul and a 45 percent stake of marijuana company Cronos. And locally, in May 2019, Vodacom announced their acquisition of a 51 percent stake in South African internet of things (IoT) start-up, IoT.nxt. “Globally, there is increased focus on disruptive M&A as a strategy. Non-technology companies have overtaken technology companies as the largest acquirer of tech firms worldwide and Deloitte’s latest Global M&A Index shows that from 2015 to 2018, companies spent $877 billion acquiring disruptive technologies and business models, up 28 percent from the prior year. In another recent survey, 77 percent of businesses reported that they expect to compete in a new sector within the next three years,” says Mohsin Khan, a partner in Deloitte’s Financial Advisory practice. Mohsin is also the digital lead for Deloitte Financial Advisory in Africa, under which disruptive M&A falls. “There are companies that are challenged for growth in their traditional business models, and where there is an imperative on them to create the ‘business of tomorrow’, they don’t necessarily have the capacity or the ability to generate innovation in-house,” Mohsin says. For these companies, a deal that allows them to bring in new tech, new people, or new approaches is a (relatively) quick and proactive protection against outside disruption, he explains. “A disruptive M&A deal can take the form of an acquisition, a joint venture, a partnership, or corporate venturing; all of those

would fall under the spectrum of disruptive M&A.”

Kickstart your digital transformation Karin Hodson, the Africa managing partner for Financial Advisory, says disruptive M&A is a key initiative of theirs as they are increasingly seeing non-tech corporates buying out tech start-ups or buying into adjacent industries. “This is driven by the need to change from their normal business models, and for some companies it would even be a case of ‘adapt of die’. Business models are rapidly changing, and firms are asking themselves how they shift accordingly, upscale quickly, or gain access to new technologies.” She continues: “This is something that we are looking to assist clients with. We see our clients who are looking into ‘adjacencies’ and helping them connect with startups. Locally we have already seen some of these types of deals happen, particularly within telecommunications and financial services.”

Mohsin Khan, partner in Deloitte’s Financial Advisory practice

Their network and deep digital knowledge, says Karin, allows them to add value at every stage of a disruptive M&A deal, even from the first step of sourcing the right target company or technology. Deloitte has an existing network of startup and innovation hubs globally that they tap into, and in South Africa they enjoy a relationship with

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FUTURE

Grindstone, an accelerator programme. And because of the connected nature of business today, local companies can take advantage of new tech developed in Israel, or a Netherlands-based firm could enter into a deal with a South African startup.

Deep digital know-how But it is not, Karin and Mohsin caution, as simple as swallowing up a small competitor or technology. “Everyone does M&A. There are numerous transactions occurring in the market, but disruptive M&A is quite different,” says Mohsin. These deals are inherently complex and the skills required often fall outside of the scope of the traditional M&A field of expertise. “How you value these companies will be very different from valuing an established, mature business, compared to technology startups or scale-ups with unproven track records but potentially high value intellectual property.” “These deals happen at a much faster rate than a typical M&A deal. This is not M&A as usual, and may involve multiple successive or simultaneous transactions.” he says. Karin concurs, adding that the valuations and due diligence required here involves understanding matters like IP ownership, third-party contracts and dependencies, as well as platform and technology nous. “And likewise human resources, culture, and fit of individuals needs to be considered, all the way through to post-merger integration.”

Culture is king The latter is often overlooked, says Jared Moodley, an associate director in Deloitte’s Financial Advisory practice. “The last thing you want to do is acquire a startup, incorporate them into your large corporate structure, and kill the innovation.” “That is part of what we do – understanding the culture fit, and advising on post-merger integra-

For more information on disruptive M&A, visit www2.deloitte.com/za/DeloitteDisrupt

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Karin Hodson, Africa managing partner for Financial Advisory at Deloitte

tion. It must be driven by an understanding of strategy, working with the leadership team to articulate what they want from a deal.” “Then it’s about doing the right deal – be it an acquisition, a joint venture, a partnership or corporate venturing – with the right startup company, within the right ecosystem.” l

It’s crunch time The CFO guide to cloud As a CFO, you know in your gut that cloud investments will be part of the future, whether they’re driven by the need for innovation, the need for cost reduction, or both. CFOs need to be aware of all these opportunities. The key to effectiveness with cloud is to have a workable plan and keep moving. With a taste of what’s possible, and with Finance at the table, you can be sure that new initiatives can be extended across the enterprise when the time is right. For more information contact, contact Philip Hechter, Finance and Enterprise Performance Leader – Africa Tel: +27 (0)11 517 4646 | Email: phechter@deloitte.co.za © 2019. For information, contact Deloitte Africa. (815367/Una)

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Photos: Patrick Furter

Rivasha Maharaj, AFGRI CFO

Bothwell Mazarura, Kumba Iron Ore CFO

Scary and exciting – CFOs become “futurealists” at Saxon dinner CFOs discuss what’s on the horizon at a scrumptious three-course dinner at the Saxon, with futurist Graeme Codrington. 70

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Storme McDonald, CFO of RMB Corporate Banking, Elisa Mkhize, CFO of Clinix and Marlé van der Walt, Investec Specialist Bank CFO

n 16 April 2019, a select group of some of South Africa’s top CFOs discussed the future with globally renowned speaker and strategist Graeme Codrington over a delicious threecourse meal at the luxurious premises of the Saxon Hotel. The evening, hosted by CFO South Africa in partnership with software company Sage, brought about discussions of the “futurealist”, which was as much about technology as it was about the impact of staying younger longer, ethics and education, as well as the lives and times of our children. Clinix Health Group CFO Elisa Mkhiza sparked a conversation about how the future is “exciting and scary at the same time”. The continuous technological revolution in personal life and the workspace was touched on by most dinner guests, including Investec Specialist Bank CFO Marlé van der Walt, who said that tech has the potential to “invigorate the profession”. RMB Corporate Banking CFO Storme McDonald focussed on the way tech can “amplify human capital”

and allow finance leaders to hire coders and engineers as part of their team, rather than just CAs. Sappi CFO Glen Pearce talked about the influence of technology in promoting democracy, but also touched on moral and ethical dilemmas, for example around driverless cars. Kumba CFO Bothwell Mazarura emphasised the future is now and talked about the challenge as a parent around regulating the exposure and access of his children to tech, a point that was debated for a while by all. Afgri CFO Rivasha Maharaj concluded that tech forces leaders to be even more responsible and accountable. Sage’s Greg Palmer and Matthew Kibby regularly chipped into the CFO discussion and the dinner turned into a showcase for the top-notch learning and knowledge sharing for which these types of events have become known. With Graeme Codrington on form, the discussion was also full of fascinating facts and thought experiments. What, for example, are the consequences of the fact that our average age will soon be 100? What does that mean for us personally, for our business and for the CFO role? l

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CFO Cares:

Photos: Patrick Furter

Tryphosa Ramano takes making a change into her own hands PPC CFO Tryphosa Ramano supports the not-for-profit organisation Time for Change in her personal capacity. She says it’s important to give what she can to make an impact on someone else’s life, because she has succeeded as a result of her community supporting and uplifting her. By Ray Mahlaka

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Tryphosa Ramano, the CFO of PPC, producer of cement, lime and materials, attributes her career milestones and success in the finance world to the township of Mamelodi in South Africa’s capital of Pretoria. After all, she’s had a high-flying career the likes of which many finance professionals could only dream. In 2011, she was appointed as the first female CFO of PPC, a multinational business listed on the Johannesburg Stock Exchange, which operates in the construction industry – a space that is still dominated by men in top echelons. Women empowerment has always been Tryphosa’s passion and goal in the various roles she held before joining PPC, including being the financial director of Women Investment Portfolio Holdings and director of the Development Bank of South Africa – just to mention a few. Her journey of building a finance career began with hardships during her formative years. Tryphosa was raised by her grandmother in Mamelodi because her biological mother gave birth to her when she was only 16 years old. “Life was difficult because we didn’t have a lot of money at home and we struggled to even afford the basics of life to survive,” says Tryphosa. Although her household didn’t have the financial means for a comfortable lifestyle, her grandmother ensured that Tryphosa and her siblings excelled at their education. The Mamelodi community, especially her teachers, also rallied around her, helping her to complete her education at Vlakfontein Secondary School. In one of many examples, teachers at the school helped her apply for a government-subsidised loan – now known as the National Student Financial Aid Scheme – which allowed her to pursue and complete a B. Com in Accounting at the University of Cape Town in 1992. And more than 20 years later, Tryphosa believes in the philosophy of paying it forward by uplifting people born into disadvantaged circumstances. She fulfills this purpose by supporting not-for-profit organisations like Time for Change, which provides a refuge for homeless children and adults that are lured into the vicious world of commercial sex work. Time for Change was founded in 2004 by Barbara Hill, a stalwart in the non-profit organisation industry that began outreach work in the 90s. The organisation operates from the Drill Hall, a significant heritage site in Hillbrow near the bustling Noord Street taxi rank in Johannesburg. The Drill Hall was a venue where the initial stages of the Treason Trial were held between 1956 and 1957 – in which 156 anti-apartheid activists, including Nelson Mandela, were charged with high treason. Today, Hillbrow is at the forefront of the country’s social challenges: there are high incidences of unemployment, refugee influx, HIV/Aids, women abuse, degradation of urban

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environments, drug dealing, crime, and prostitution. It was the latter problem that prompted Barbara to start Time for Change, which initially operated from her apartment in Yeoville in 2004. At the time, she took in two girls, aged 13 and 14 years, after discovering that her neighbours in the apartment building were using them as commercial sex workers. “I ended up housing some of these young girls in my house while I tried to locate their families. I located the grandparents of one of the girls, but they didn’t want her because she was HIV positive. They said they didn’t want her even if she is dead,” says Barbara. Using her personal savings, she

Support Time for Change For more infoinformation about how you can get involved with the incredible work being done by Time for Change, contact Barbara Hill on +27 78 720 1361.

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founded Time for Change, which rehabilitates sex workers so that they gain vocational training and employment. The organisation also provides former sex workers with temporary housing at the Drill Hall. She first established a bakery where former sex workers would bake scones that would be sold in the streets of Hillbrow to raise funds that cover the day-to-day runnings of Time for Change. The bakery was so successful that Barbara was able to expand Time for Change’s programmes to include educational support and vocational training to sex workers and street children. Barbara teaches them how to sew to make bags and clothes, which are sold to financially support the organisation. They are also trained on how to use a computer, which is critical to finding gainful employment.

Enter Tryphosa Since Time for Change opened its doors, Barbara estimates that she has rehabilitated a total of 2,111 children and adult sex workers.

In achieving this feat, Barbara says it wouldn’t be possible without Tryphosa’s unwavering support. “She has supported us even in the darkest moments when we didn’t have money to run the organisation,” she adds. Barbara and Tryphosa initially met in 2012 when PPC awarded Time for Change a donation of R50,000, which went into buying sewing machines, groceries and baking equipment for the organisation’s bakery. Tryphosa’s support of Time for Change goes beyond PPC structures as she donates her own money and other resources to the organisation. Barbara recalls how Thembi*, who was rescued from the streets by Time for Change, wanted to register for an accounting degree at the University of Johannesburg (UJ) in 2016 after passing matric with flying colours. She couldn’t register because Time for Change didn’t have the required R5,000 registration fee. Barbara didn’t tell Tryphosa about the conundrum or ask her for

money. But Tryphosa surprised Barbara by transferring the required money into her account. “When Tryphosa gave us the money, it was like heaven. Finally, she could go to school to improve her life instead of continuing to sell scones on the streets.” Thembi has since graduated from UJ and works for a national government department.

to Time for Change. This endeavour makes a huge impact especially during Christmas, when children at the organisation expect new clothes to celebrate the holiday season. She also partnered with some of her industry peers at Nedbank to collect 40 blankets, a portion of which were distributed to Time for Change.

ies host annual conferences, Tryphosa ropes in Barbara and Time for Change to design and sew bags that can be used by delegates to hold conference materials. She sometimes uses her own money to order bags – in large volumes of between 150 to 400 bags – for conferences in which she is involved.

Tryphosa is also Time for Change’s biggest customer.

Going beyond the extra mile

When Tryphosa has family occasions, she orders Barbara’s fluffy and delicious scones and other baked goods. Disclaimer: CFO South Africa tasted the scones and they are delicious.

Barbara says there are many instances in which Tryphosa has gone beyond the extra mile. But there is one which is her highlight.

Asked by CFO South Africa about why she gives back to the community, Tryphosa says it is in her DNA.

Underscoring their close relationship is that Barbara designed and baked Tryphosa’s wedding cake in 2015. Tryphosa says her support of Time for Change as a patron helps the organisation to sustain itself, instead of relying on handouts. To further support the organisation, Tryphosa uses her vast network in the finance industry to promote and encourage support for Time for Change. She constantly asks her colleagues at PPC’s head offices in Sandton to donate their old clothes, which are handed

At Time for Change’s premises, there is a sewing room where reusable shopping and laptop bags are made using PPC cement packaging that is donated by the company. When PPC has corporate events, the company buys the bags in bulk – money which goes towards sustaining Time for Change. Tryphosa takes this PPC-Time for Change relationship further. Beyond PPC, she was the president of the African Women Chartered Accountants from 2016 to 2017 and president of the Association of Black Securities and Investment Professionals from 2011 to 2015. Whenever these industry bod-

“I am very passionate about social development because some of us come from tough environments. Somebody saw the potential in me and provided me with an opportunity. I am where I am because of the Mamelodi community that uplifted me. My motto in life is that whatever I have, I need to give it away and make an impact on someone’s life.” l *Thembi is not her real name.

Do you have a CFO Cares story to share with us? Contact CFO community manager John Deane on jdeane@cfo.co.za with the details.

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TRAVEL TIPS AND TRICKS FROM TOP CFOS

ON THE RO 76

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OAD AGAIN With so many companies having multinational or multi-provincial operations, it’s unsurprising that “willingness to travel” is a headline job requirement for CFOs. Four finance executives who apply their strategic thinking to the business travel journey as much to the destination, shared their travel tips and tricks with Kate Ferreira.

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part of the Liberty Group. This entails overseeing the finance of 12 different business units and serving on a number of boards, including as chairman of the Audit and Risk Committee (ARC), so he characterises his work-related travel as “extensive”. For business travel, his preparation starts long before takeoff. First, be sure you check yourself in, rather than relying on the travel agent to do so, he says. “This not only gives you peace of mind, but you can also ensure that your preferential seat is booked.” Along the same lines is double checking your travel documents: “Always check the number of pages left in your passport as well as the rules around the required number of pages. I've been turned away from a flight before, even though I thought that the space in my passport was still sufficient.” He also confirms that his phone is set up to make and receive calls (with data roaming switched off).

n an increasingly globalised business environment, regular travel is a given for your average CFO. And this climbs to monthly and weekly excursions for executives reporting into international headquarters or overseeing multinational divisions. CFO South Africa asked four professionals from our network to tell us (and you) how they manage the miles and make the travel time fly – both personally and professionally.

Ravi Singh, Liberty Ravi Singh is the CFO of Liberty Africa Insurance,

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Ravi suggests frequent travellers invest in quality travel gear, including hand luggage and laptop bags, and wireless headphones. “Ensure these are fully charged before flying. And keep your music playlists updated; music is great for passing the hours on a flight, especially while you’re working.” If you prefer to take in the entertainment, Ravi suggests predownloading series or movies. “As a frequent flyer, the same in-flight movie may play a few times on your trips, and having your own selection makes the flight more comfortable.” Choosing – and paying for – comfort is a strategy that comes up repeatedly from our CFOs. For example, Ravi says, “Make full use of the airport lounges, even if you

have to pay for access at times. They provide comfort and a good place to work in, along with catering, thus relieving the frustration of the wait before flights.” The same applies to personal travel, he says. “But I will add, keep all the relevant family documents handy and easily accessible as you will be asked a few times to produce birth certificates and passports for the kids, and a quality sleeping pillow that supports your neck is vital for the whole family, irrespective of how old the kids are.” Lastly, he offers a word of caution: “Never underestimate the roads, especially for early morning flights out of SA. Always leave early – period!”

Estelle Tait, Acer Africa Financial director Estelle Tait’s travel tips are pragmatic and actionable. Firstly, she agrees, “comfort is key”, and for her, this starts with comfortable clothing, including a warmer item for layering up “when the temperature in the aircraft drops” as it usually does overnight. There’s also comfort of the skin-deep kind: she recommends keeping your moisturiser to hand, so the dry cool circulating air doesn’t dry you out. On the tech and content side, she is also a fan of noise-cancelling headphones, and of pre-downloading selected content, arguing that you’ll want to enjoy your own favourite movies and series, rather than relying on the airline’s choices. Estelle also takes along a fullycharged power bank, so she can extend the life of her devices.

Alternatively, she says, you can’t go wrong with a good book to read.

Jaco Maritz, Syspro Jaco Maritz is the chief operating officer (COO) of software development company Syspro (he was previously featured in CFO Magazine when he was the CFO). The company was started in South Africa, and is headquartered in Johannesburg, but has grown substantially and now has operations or offers support in Kenya, Asia, Australian, Canada and UK.

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As a result, Jaco flies internationally often, and “most of the time,” he says, “this means travelling across time zones with very little recovery time. There are four things I pack right away, apart from my passport.” First on the list is his prescription sleeping pills. “When flying across time zones, it is more important to get some sleep rather than watching movies. The sleeping pills prescribed by my doctor work very effectively for six hours, but that is it; It does not leave me feeling like I finished the flight’s whiskey collection like some of the ‘over the counter’ pills do,” he says. Next on the list is his noise-cancelling Bose 35 over-theear headphones. “I am sure people reading this who travel a lot can already hear that monotone sound of

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the airplane cabin. The headphones take enough of it away, even without listening to music, and they are compatible with most airlines' entertainment systems.” “It is also a good ‘leave me alone’ device when you have a very talkative seat companion,” he adds. Jaco keeps all his documents and tickets in “all-in-one man’s purse” he bought from Woolworths. “Yes, I know. Too much information,” he jokes. “But it can hold my cards, my passport, my ticket, my cell phone, a pen, and landing card. It prevents that frantic search just before you land and the silent counting that you have everything.” The downside of this strategy though is that he’s keeping all his proverbial eggs in one basket.

“If I lose it, then I am in trouble, so it stays very close to me on the flight, and stays in the safe at the hotel when I am at my destination.” Finally, Jaco is a self-described “Airmune junkie”, dosing up on the supplement on trips to try and prevent getting sick “sometimes without success”.

Sam Hopwood, Mars Africa Mars Africa CFO Sam Hopwood not only travels extensively for work and pleasure, but has moved cities and countries for work – taking no more than two suitcases with him – on more than one occasion. Sam hails from the UK originally, and comes to the South African role via Switzerland, Leeds, Nottingham and the Netherlands. “I travel around once a month, both short haul and long haul. And luckily when you're travelling business class, flights become much more bearable. But there are a few things you can do to make it even more comfortable. For example, I always drink a lot of water, because being in that dry atmosphere for 12 hours or so is very dehydrating,” says Sam. Arguably though, he continues, timing is the most important factor. “If you’re flying to Europe, not crossing many time zones, you won't have to deal with jetlag, but choosing to fly at the right time is worth the extra R1,000 or so – whether you're going to spend the time working, or just getting a good night's sleep, so you're fresh for the office the next day.” “I always book direct flights,” Sam adds. “I know it can be tempting to save money, but if it adds, for example, an extra 15 hours to your journey, you have to think

about whether that's providing value.” When possible, Sam will also spring for business class seats for his personal travel. “Thankfully, because of all the business travel, I've built up a lot of air miles through various frequent flyer and loyalty programmes. This means that I can often upgrade to business class, even on my personal trips. But I make sure I only do that on long haul-flights. I don't personally see the same benefit over a two- or three-hour flight.” But it’s not all discomfort and frustrations to overcome, argues Sam: “One great thing about these flights is that it does give me time to read – something I love and wish I could spend more time doing at home. Being locked away in a cabin for 10 hours can give you a great window for reading.” l

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Burnout then and now – and how we can harness stress to our benefit When I was growing up on the East Rand in Johannesburg, a “burn out” was something you did on your motorbike by holding the front brakes, putting the bike into gear, revving like hell and dropping the clutch. In those days it was a highly sought-after skill and anyone who could execute the move was seen as extremely cool and fun.

you at the second annual CFO Day on 23 July at Marble Restaurant in Rosebank, Johannesburg.

A couple of decades later, having entered into the business world, I no longer find the adult version of burnout to be cool or fun.

Lined up, we have Richard Sutton, a global sports coach and author of The Stress Code, who will be delivering a keynote address on how to reduce stress and use it to your advantage. Richard has been a regular at many of our exclusive CFO Dinners and the unanimous feedback we receive is that his insights are life-changing.

On 28 May 2019, burnout (“a syndrome conceptualised as resulting from chronic workplace stress that has not been successfully managed” as described by the World Health Organization) was recognised formally by the medical community and WHO as an official workplace syndrome. Honestly, over-revving a bike was way more fun. The community that I work with – finance executives – have what is regarded as one of the most stressful jobs in corporate culture. As the CFO or FD, you are ultimately responsible for signing off the numbers. The slightest negligence or oversight could have insurmountable consequences for your organisation and its hundreds or thousands of employees. It’s estimated that finance executives work between 50 and 80 hours a week. Although overworking has been glamorised by success culture, in reality, it leads to fatigue and workplace stress, too much of which, as we know, leads to burnout.

Richard will be presenting alongside leading executives from A2X, Absa, G4S, EOH, Investec, SAA, SNG Grant Thornton, Telkom and T-Systems. We're looking forward to seeing you there. We will also be hosting a Working Wonderwomen Dinner on 1 August to kick off Women’s Month. The focus is on showing up in business and in life, and a panel of industry experts and keynote speaker Lori Milner from Beyond the Dress will discuss the unique challenges that working women face, and provide inspirational solutions. Registrations are open to women CFOs and their mentees. For more information on any of our upcoming events, feel free to contact me. Over and out, but hopefully not burnt out,

I consider myself lucky, therefore, to work in an organisation where we engage with some of the best minds on identifying, overcoming and even harnessing stress so that we can be our most productive yet healthiest selves. We’ll be sharing these insights with

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John Deane CFO South Africa community manager +27 82 570 9482 jdeane@cfo.co.za

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