Essential Business Magazine Issue 15

Africa

www.essentialbusinessmag.com|Issue 15

Building a Better

Future Profica Nigeria staying true to its roots p28

Also in this issue: Coega Development Corporation p14 HF Group p20 Leogem Properties p34

P R O D U C T I O N Scott Jameson

Publisher sjames@essentialbusinessmag.com

Zain Millington

Production Manager

Sam Wright Editor-in-Chief

James Macnamara

Associate Editor production@essentialbusinessmag.com

Magazine Design and Production: www.opticjuice.co.uk design@opticjuice.co.uk

P R O J E C T S David Taylor

Head of Projects dtaylor@essentialbusinessmag.com

Amelia Nazer

Senior Projects Manager amelia@essentialbusinessmag.com

Uzzal Hossain

Project Manager hossain@essentialbusinessmag.com

James Hall

Project Manager jhall@essentialbusinessmag.com

Lucrecia Salie

Project Manager lsalie@essentialbusinessmag.com

S A L E S Adam Caan

Head of Sales acaan@essentialbusinessmag.com

Johann Van Wyk

Sales Executive jvwyk@essentialbusinessmag.com

F I N A N C E Miah Dizer

Finance Manager accounts@essentialbusinessmag.com

E X E C U T I V E

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his edition of has something of a property and project management theme.

In our lead feature we take a tour through the Coega Industrial Development Zone (IDZ), and look at the company behind managing this enormous project.

Property and financial services company HF Group is up next, as speak to its managing director about diversifying and integrated solutions.

South African Leogem Properties’ modern, energy efficient homes are satisfying the country’s shifting property demands. A family-run operation, company directors Messrs Christos reveal the strategies behind their progression.

Finally, property management consultant company Profica Nigeria has pioneered project management in Nigeria, and while branching out remains loyal to its country of origin.

With other features including a discussion on how automated technologies are working both for and against Africa’s job market, and a look at Germany’s interest in African energy, there’s lots to be getting into in this edition – we hope you enjoy.

D I R E C T O R S

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Contents Automating Africa

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look at whether a compromise can be reached between the drive towards automated technologies and the demand for employment.

Transferring energy expertise 8 An interview with Christina Wittek on German interest in African energy projects.

News round-up 12 Business news in Africa, including an energy deal between Djibouti and Toshiba, and details of the Japan-Africa Business Conference.

Coega Development Corporation 14 A tour through an enormous land and business management project, with Coega Development Corporation at its helm.

HF Group

20

HF group continues to lead the way in building affordable housing, and are key contributors to KenyaVision 2030.

Profica Nigeria

28

Property management consultants Profica Nigeria continues to expand across the continent, while remaining rooted in its country of origin.

Leogem Properties

34

Innovative design and intelligent strategies mean Leogem Properties look to be there to meet rising demand for housing in South Africa.

Siyahamba Engineering

38

Siyahamba Engineering manufactures essential parts for the rail and transport industries.

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On

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s Africa continues to reveal its potential, a dichotomy has emerged between the advances available to it and the educational frameworks allowing its workforce to embrace them. Although increasingly widespread 4G and 5G internet enables many people to selfeducate and find new ways towards entrepreneurship, the infrastructural and educational challenges of African nations

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Global industrialisation has traditionally been ase accompanied by an incre es. in automated technologi While often welcome, n in Africa this has been see ve iti tu in ter by some to be coun to the demand for employment and a skilled workforce. Can a compromise be reached?

“Yet few could deny that a dichotomy exists between the advances available to Africa and the educational frameworks in place allowing its workforce to embrace them

rest on the shoulders of the unrealised potential of an enormous workforce. Concurrently, advanced mechanisation technologies enable everything from manufacturing to port logistics to operate by means of software and steel – yet for many organisations, to embrace such machinery stands against the potential locked inside the people.

Trusting the talent

In a recent interview with , Mr Karl Socikwa, chief executive of South Africa’s Transnet Port

Terminals (TPT), expressed his perspective on favouring the employment of manual labour versus automation, even in a leading South African port currently being modernised.

His sentiment – to uplift the capabilities of the unemployed and the ambitious – is one echoed within and beyond South Africa.

As African nations diversify their economies, with renewable energy and construction proving fertile ground for employment, the population continues to rise.

However, job opportunities are often not rising in parallel. In 2015, Sub-Saharan Africa alone had 19 million first-time job seekers facing labour markets that had just 500,000 jobs available, making it little wonder that young Africans increasingly take their skills abroad. Such dynamics take valued talent out of Africa, and as much as those skills are appreciated worldwide, it is the continent itself that needs them most of all.

Rise of the machines

Industrialisation has long been heralded as the path to Africa’s future, as touted by the World Bank and the United Nations Economic Commission for Africa. United Nations projections suggest 500 million more Africans of working age will be added to the continent’s population by 2050. Creating jobs for those individuals is paramount,

“Such dynamics take valued talent out of Africa, and as much as those skills are appreciated worldwide, it is the continent itself that needs them most of all and 2016’s African Economic Outlook has suggested that countries such as Kenya, Mozambique and Ethiopia have been more successful than their contemporaries in diversifying their economies away from commodities. That means growth in agriculture, construction, manufacturing and infrastructural development – each key sectors for employment opportunities, as well those for which automation has its advantages.

Compounding that revelation is the information discovered by studies conducted for Citi GPS’s Technology At Work v2.0 study – produced in alliance with the Oxford Martin School – which suggested that Ethiopia could stand to see 85% of its agricultural jobs consumed by automation. As one of Africa’s largest nations, that puts a staggering number of citizens

at risk of losing employment opportunities. Numerous other African countries were similarly listed in the report as at the highest risk of fostering an unfavourable balance between skills-based employment and automated industry. Crucially, both Nigeria and South Africa were cited in the same report as risking losing around 66% of their potential employed workforce to automation.

With those three countries representing the leading economies of Africa, how will nations further down the chain stand up to these concerns? How do businesses and governments prioritise development at both the technological and social level, while encouraging homegrown talent to remain and propagate progress?

African appeal

For many, the answer rests in raising the standard of living in Africa. According to the African Economic Outlook, countries such as Mauritius, the Seychelles and nations along the Maghreb belt have performed the best in recent years with regards to human development. That means the creation of education and incentives enabling the development of skills alternative to those involved in manually intensive vocations. If realised, that movement would enable automation and employment opportunities to exist harmoniously across the continent.

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Expert

In this edition’s expert discuss interview Germany’s interest in African energy projects with Christina Wittek, division head for German Energy Solutions Initiative at the Federal Ministry for Economic Affairs and Energy.

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Let´s start with the German Energy Solutions Initiative of the Federal Ministry for Economic Affairs and Energy.

What is the initiative?

The German Energy Solutions Initiative supports German SMEs tapping into foreign markets as well as transferring knowhow and energy expertise.

Additionally, the initiative wants to tie economic interests with international development. It is coordinated and financed by the German Federal Ministry for Economic Affairs and Energy.

The initiative offers market information, networking and business opportunities within and outside Germany, and showcases reference projects and facilitates capacity building abroad. I am head of the German Energy Solutions Initiative division at the ministry.

What kind of activities are you involved in in Africa?

In Africa, the whole range of activities that we offer are being carried out. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is implementing the Project Development Programme (PDP), which focuses on developing and emerging energy markets.

The PDP is giving policy advice in order to help establish the necessary framework conditions

for the implementation of smart energy solutions focusing on renewable energies. In markets that already have a German Bilateral Chamber of Commerce (AHK), we are facilitating networking opportunities between German and African SMEs with their help in order to foster business cooperations.

Further, the initiative supports SMEs in realisation of reference projects with the purpose of showcasing “energy solutions – made in Germany” as well

“The initiative offers market information, networking and business opportunities within and outside Germany, it showcases reference projects and facilitates capacity building abroad as enabling them to exhibit at international trade fairs such as the African Utility Week. We also offer fact-finding missions to Germany for African company representatives and decision makers. Our aim is to enable them to gather first-hand information on energy solutions by visiting reference projects and demonstration sides.

This year we are organizing 23 activities on the African continent.

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These activities comprise nine AHK trade missions from Germany to various African countries, four fact-finding missions to Germany, three reference projects are being implemented and three information events on African energy markets are taking place in Germany. We will also be present at one more trade fair in Morocco.

“The South African market is a growing and interesting market for German suppliers of energy solutions What kind of activities are taking place for and in South Africa this year?

The second reference project within the dena-RenewableEnergy-Solutions-Programme in South Africa was commissioned on the 19th of May. With this project the German company is transferring the PV renting approach to South Africa. This approach offers a smart business

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model for financing such a power producing system. A first 20 kWp pilot project was installed at the Dominican Grimley School in Hout Bay in February 2016 and a second one is currently being implemented at the Atlantic Gold Guest House. The project has successfully tackled the challenge of financing tools for photovoltaic (PV) systems not being readily available in South Africa, which is the main obstacle to the implementation of small scale PV systems.

How important is the South African market for the German suppliers of renewable energy technologies and services?

The South African market is a growing and interesting market for German suppliers of energy solutions. Therefore the German Energy Solutions Initiative has been focusing on the South African market for years. The importance has been increasing in the last few years. More and more German companies are establishing offices in South Africa not just because of the growing market for renewable energies but also because it can be seen as a gateway to the neighbouring countries.

And the African market?

Even though the energy markets are still at an early stage in

some African countries, we see an enormous potential for renewable energies as well as the possibility to establish a sustainable energy system.

This is especially the case in countries where access to energy is lacking. German companies have gained lots of experience and know-how in this area over the years and can provide the necessary technologies and expertise.

We see the African markets gaining even more importance for German suppliers of renewable energy technologies and services in the future.

What challenges do renewable energies face in Africa in your view?

Like almost everywhere, the biggest challenge is financing, especially for small-scale installations. Therefore, it is very important to develop business models that are economically viable.

One possible business model is the PV renting approach which I mentioned before. PV renting means that one entity invests in a PV system (system owner) and rents the system to a second entity (system operator).

The system operator uses the electricity and pays a monthly rental fee to the system owner.

Furthermore, the system owner gets the option to buy the system after 10-15 years.

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News RESOURCES

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oal India, the largest coal producer on Earth, has entered a memorandum of understanding (MoU) with African Exploration Mining & Finance Corporation (AEMFC), which is owned by the government of South Africa. The deal aims to enable the Indian giant to take advantage of the substantial coking coal resources available in the country, and has already seen the firm actively evaluating the potential of several coal mines across South Africa.

In a deal that encompasses the exploration, acquisition and management of coal assets in South Africa, Coal India and AEMFC also made apparent that a joint venture enterprise could be floated to further facilitate operations.

In Malawi, Mkango Resources is ramping up activities following a series of successful preliminary surveys, together with successful listing on the London Stock Exchange. The push forward comes as uranium anomalies and other high-interest resources continue to be identified in what CEO Mr Will Dawes asserted as being a ‘serious mining destination’.

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apan’s Prime Minister, Mr Shinzo Abe, personally addressed leading political and economic minds at the Japan-Africa Business Conference at the Kenyatta International Convention Centre in Nairobi.

The convention, held at the end of August, was held to commemorate the signing of over 70 memorandums of understanding designed to forward relationships between African nations and Japan.

The Asian country has pledged US$30 billion T R A D E in total across such agreements, all of which are designed to further the continent’s economic and infrastructural growth.

Experts from across Africa are similarly agreed in consolidating their trade interests, in the hopes of mitigating the impacts suffered by economies like Nigeria and Angola in the light of commodity price slumps. Egypt, South Africa, Nigeria and Kenya have put forward the design for an African trade bloc that unites the continent’s largest economies, which will not only facilitate trade from one African nation to another, but also provide a platform by which international trade agreements can be more readily brokered. Time will tell if the idea gains traction and, if so, whether such a trade bloc truly breaks the barriers otherwise impeding a stronger and more economically agile Africa.

News E N E R G Y

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jibouti has entered a landmark new deal with Toshiba in the development of new geothermal energy assets that will aim to revolutionise the country’s power grid, in terms of both output and the country’s commitment to advancing as a green economy.

The agreement between Toshiba and Djiboutien de Développement de l’Energie Géothermique (ODDEG) will see expertise implanted into the country via the MoU, which will include the development and operation of geothermal power plants as much as training and development of the personnel to run such sites. Djibouti’s 120 MW generation capacity is currently supplemented by power that is imported from neighbouring Ethiopia, although most of the country’s own energy is generated by geothermal means. A further 50 MW of geothermal energy is

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hana’s economic journey, hampered in recent months by poor international commodity prices, has mobilised both local and international interest groups with retail outlets in the country to rethink their strategy.

A combination of currency depreciation and high inflation has been met with a series of energy crises that have created new challenges for businesses in the retail sector of Ghana. A study by local research group Broll noted that fuel and living costs have hampered disposable income in Ghana’s citizenry, despite the country’s renowned high GDP growth and rising middle class.

Accra, capital of the nation, has been heralded by some to have reached a ‘saturation point’ in terms of mall and dedicated shopping centre space, where retailers have flocked

projected to be added to the country’s grid via the possibilities opened by this new deal.

The MoU further adds to Toshiba’s existing portfolio of geothermal energy projects across the African continent, which also includes the organisation’s involvement in Tanzania and Kenya.

Meanwhile in Nigeria, the economic giant’s reliance on crude oil, which contributes 70 per cent of the nation’s GDP, has been afflicted by the commodity’s continuing downturn. Following a Q2 review, Nigeria has officially entered a state of economic recession for the first time since 1991, with its oil & gas activities further beleaguered by the militant activities of groups such as the Niger Delta Avengers.

R E TA I L

to meet prior economic booms and today been left buffeted by the ill winds of the downturn. Experts are citing that a readjustment of demographic targets, moving from high-end products to value commodities in high demand among the populace, will reverse what has otherwise been a concerning trend.

Additionally, retail giants are now turning their attention to the comparatively less tapped resources of so-called ‘second-tier’ cities, such as Takoradi and Kumasi. Both cities have sizeable populations and promising economic outlooks, as well as new mall complexes each scheduled to begin operations in 2017. With Kumasi City Mall’s sizeable expanse already 80 per cent let to interested parties, it is apparent that Ghana’s retail success story isn’t petering out quite yet.

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Coega w w w . c o e g a . c o . z a

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Diversified

Coega Development Corporation

Founded in the summer of 1999, the Coega Development Corporation is a state-owned company entrusted to manage the highly-coveted Coega Industrial Development Zone (IDZ) – a significant responsibility, considering it includes 11,500 hectares of industrial land. On top of this, Coega’s primary aim is to attract investors to the site in an effort to increase socioeconomic growth within South Africa and bolster the area’s status as an investment hotspot.

For the Coega Development Corporation, nothing is done on a small scale.

Managing 11,500 hectares of land in South Africa, it has signed investments worth billions and generated more than 62,000 jobs both locally and overseas.

Coega’s target investors are within export-oriented industries, not least because of the industrial development’s location. The vast plot is adjacent to the Port of Ngqura, a deep water harbour and transhipment hub that’s the largest IDZ in the Southern Hemisphere and acts as a convenient gateway to the rest of the global market.

Thus far, Coega’s investors largely span across the automotive, energy and construction industries, with companies specialising in everything from steel and air products to wind towers and cold storage.

Additionally, Coega not only offers an opportune location

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C o e g a

D e v e l o p m e n t

– one that’s also within reach of the Nelson Mandela Bay Metropolitan Municipality – but a wealth of money-saving advantages. Investors who choose Coega also benefit from tax incentives and rebates within a duty-free zone, not to mention ample space for large-scale buildings such as factories.

More than just property management

Never one to be limited, Coega’s operations span much further than just managing the IDZ. Coega also provides its investors with business management, human resources and strategy services, all aimed to get companies off their feet and thriving.

Coega has also been tasked with helping advance the delivery of infrastructure within the Eastern Cape and KwaZulu-Natal regions, through addressing issues like constrained planning and project management capacity, skill shortages

Investors who choose Coega also benefit from tax incentives and rebates within a duty-free zone, not to mention ample space for large-scale buildings such as factories

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C o r p o r a t i o n

and under-expenditure.

When it comes to improving unemployment, Coega has met the task head-on. The Top Employers Institute estimates that Coega has created some ‘62,000 jobs in both local and foreign direct investment’, and subsequently contributed an estimated 2.5% gross domestic product to the local area. As a result, they have been awarded the organisation’s Top Employer Award in South Africa for 2016.

The corporation is also committed to growing internally.

Beginning in 2011, Coega has since branched out so that its project management services assist not only those found on the IDZ but schools, hospitals and road-building projects, working alongside clients like the South African Departments of Health and Education. As the need for various resources within South Africa expands and their range of clients continues to grow, Coega is devoted to meeting the challenge.

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D e v e l o p m e n t

Investors are confident in the Coega IDZ’s ability to withstand tough times, as such they continue to experience consistent growth year-on-year

On the horizon

Stagnancy within the IDZ is scarce – in the past two fiscal years alone, four of Coega’s investors have opted to expand their facilities within the IDZ. ‘These numbers are impressive, given the macroeconomic challenges facing the domestic and global markets,’ Coega’s Head of Marketing & Communications Dr Ayanda Vilakazi told website RNews. ‘Investors are confident in the Coega IDZ’s ability to withstand tough times, as such they continue to experience consistent growth year-on-year.’

One such expansion has occurred with Coega investor Dynamic Commodities, an agro-processing company.

Announced earlier this year, the plan is to tack on an additional warehouse and refrigerated storage facility to Dynamic Commodities’ property, thus generating 500 jobs in total and the resources necessary for expanding the company’s

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clientele. The expansion also allows ‘farmers the opportunity to grow produce on contract specifically for the [IDZ] factory,’ Coega Business Development Senior Manager Johan Fourie told RNews, ‘and in this way, create jobs and opportunities for local farmers who would otherwise not have had a market for their products.’

C o r p o r a t i o n

On top of this, Coega is beginning to see an uptick in dealings with China, one that holds much potential for continued growth. As a result of a recent meeting which included Chinese Prime Minister Xi Jinping and South Africa’s President Jacob Zuma at the Forum on China-Africa Cooperation in Johannesburg at the end of last year, the two Heads of State signed 26 bilateral agreements, according to Engineering News.

These agreements reportedly allude to China’s strengthening faith in South Africa’s investment potential. It has already lead to the Beijing Automobile International Corporation signing a multi-billion South African Rand deal with Coega, and, if all goes according to plan, this will only be the beginning.

Diversified

email: production@essentialbusinessmag.com

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HFGroup w w w . h f g r o u p . c o . k e

Desirable

Properties

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Professional Services

Property and financial services company HF Group is leading the way in building affordable homes in Kenya and East spoke to Africa. managing director Frank Ireri about diversification and the company’s contribution to Kenya Vision 2030.

H

F Group is a leading property and financial services group, currently operating with three commercial subsidiaries. HFC Ltd provides mortgage and commercial banking solutions, HFDI is their property development and investment arm, while HF Insurance Agency is a bank insurance subsidiary.

They also run a non-profit initiative, HF Foundation, which focuses on training builders and tradesmen for the construction industry in Kenya, with the vision of creating “an army of one million artisans” for Kenya and East Africa.

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H F

“We’ve built that capability to now include retail banking, corporate banking, trade finance and foreign exchange – the whole gamut of banking products

Frank Ireri, group managing director of HF Group, talks about its diversification since 2012, and how the focus of the company has changed: “10 years ago we were primarily a mortgage finance company, offering mortgage loans around main assets and, in terms of the liability side, focusing on savings accounts, corporate deposits and medium term bank loans.

“With time we were able to lobby to have the Banking Act amended to allow Mortgage Finance Companies to be able to offer full banking products.

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This change enabled us to meet our customers’ desires to be their primary bank and also to level the playing field between commercial banks and mortgage finance companies.

The most critical banking products we initiated were current accounts and entry to the clearing system, which then enabled us to issue our customers with cheque books so they can take care of their own transactions. We’ve built that capability to now include retail banking, corporate banking, trade finance and foreign exchange – the whole gamut of banking products.”

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H F

Housing Finance Company of Kenya

HF Group has a close relationship with the Kenyan government, and indeed was founded by the government as the Housing Finance Company of Kenya in 1965. They soon became the premier mortgage finance institution in Kenya licensed under the Banking Act. Mr Ireri explains, “We were founded by a merger two years after independence between the government of Kenya and the government of the UK through CDC. We went public in 1992 and that’s when both CDC and the government of Kenya started selling down their shares. In 2007 CDC exited completely. They were then the anchor shareholder at 25%, until their share was bought out by

G R O U P

“HF Group is also a leading provider of integrated solutions for the acquisition, development and improvement of property in Kenya Equity Bank and British American Insurance – which is now Britam – who came in as a consortium.

Equity then sold their shares to Britam at the end of 2014, making them our largest shareholder.

The government still has about 2.5%, they don’t have a board seat anymore but our working relationship is very close.”

Integrated solutions

HF Group is also a leading provider of integrated solutions for the acquisition, development and improvement of property in Kenya. Its strategy is based on the real estate value chain, including land ownership, property development, property financing and property insurance through its subsidiary companies.

Mr Ireri says, “In 2012 we revived our development arm, Kenya Building Society, which we later rebranded in 2015 to HF Development and Investments (HFDI). Our property development focus is towards the middle and lower middle income segments of the market.

“We’re also looking to set up a property management subsidiary in the next year. As we develop these affordable houses we then create the banking opportunities and insurance opportunities. That’s how we distinguish ourselves from the 42 players in this market.”

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Providing financial solutions since 1965

H F

The group has big plans for the future in terms of both banking and development: “In the next 12 months, on the banking side the big focus is on retail banking and targeting the same income groups to bank with. We’ve been expanding our branch network into some of the higher density parts of the country. At the beginning of last year we had about 15 branches, now it’s 24 and by the end of next year we’re hoping to have about 40.”

Komarock development

The Komarock shopping mall and largescale residential property development is a good example of HF Group’s recent diversifi cation. “When we revised the company in 2012 we had a land bank of 50 acres in Komarock. We saw a huge gap in the market for development.

Over the last three years we’ve developed close to 600 homes as well as a shopping mall…

Simultaneously, in 2013 we started our fi rst two joint ventures with landowners. Precious Heights and Kahawa Downs have both been completed, sold and occupied. So our pipeline of development now is joint ventures with landowners where we are targeting to build high density units to help achieve a 40,000 dollar and below selling price.”

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G R O U P

HF Foundation

As part of the Kenya Vision 2030 Delivery Board, HF Group are well on their way towards reaching their one million artisans target for Kenya and East Africa. The group’s HF Foundation has embarked on the programme, with the aim of addressing the shortage of skilled artisans in the country, providing services to students, career counselling, mentorship and a holistic learning experience for technical training for economic and social development.

“The foundation launched a youth account around entrepreneurship, building and crafting, and has employed prevailing global practices and globally recognised techniques and technology to achieve this goal.” The initiative looks to be another exciting step towards closing both Kenya and the continent’s skills gap, and an important string in Kenya Vision 2030’s bow.

“The group’s HF Foundation has embarked on the programme, with the aim of addressing the shortage of skilled artisans in the country, providing services to students, career counselling, mentorship and a holistic learning experience for technical training for economic and social development

Profica

w w w . p r o f i c a . c o m

a Better Future

Property management consultants Profica Nigeria have expanded their operations across the continent, and are growing to become industry leaders.

While spreading its wings its core is firmly planted in Nigeria, the company seeing the sun even in the shadow of the country’s oil crisis.

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Construction

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t the time of Profica Nigeria’s inception, the professional project management sector was still a burgeoning enterprise in the West African country. After managing projects across Rwanda, Angola and South Africa, Country Manager Malcolm Matanda and his colleagues realised the unique opportunity and potential challenges they faced – to get project management off the ground in Nigeria.

“Though their clientele extends well beyond national borders, Profica Nigeria is ever-aware of and attendant to their Nigerian roots Launching officially in 2005, Profica Nigeria has since expanded its offices, so that it’s on the ground in Southern, East and West Africa, providing consulting services to property and construction industries, including tenant coordination and property management. The company’s specialty market lies within malls and commercial office accommodations, but as the market and economic climate changes, Profica Nigeria adapts their business parameters accordingly. Though their clientele extends well beyond national borders, Profica Nigeria is ever-aware of and attendant to their Nigerian roots.

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P r o f i c a

Investing in Nigeria

Breaking into the project management sphere within Nigeria would not have be done without extensive effort. Many South African companies had already attempted to make their mark in the country, but failed.

This was, Matanda speculates, at least in part as a result of the companies’ arrogance and aims to educate those they deemed less capable. Profica Nigeria, however, knew to proceed with much more cultural sensitivity than their predecessors had shown. ‘We came with a more conciliatory attitude,’ Matanda says, ‘which was that we were aware of the cultural aspects… and made sure that we learned the cultures here and were sensitive to the cultures here. I say cultures, because that’s plural.’

“As well as commercial office buildings, shopping malls and hotels, we’re also trying to diversify a bit more into other things, such as project managing road construction Their hunch paid off. Soon, Profica Nigeria was a success.

From 12 years to up until about a year and a half ago, ‘Nigeria’ was a buzz word for international companies looking to expand, and Profica Nigeria was happy

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JOHANNESBURG OFFICE: 2nd Floor, No.3 Melrose Square, Melrose Arch, JHB, South Africa | Tel: +27 11 067 9700 | Email: info@lyt.co.za | Web: www.LYT.co.za NIGERIAN OFFICE: La cour, 3 Cooper Street, Lateef Jakande Road (off Glover Road) Ikoyi, Lagos, Nigeria | Tel: +23 41 460 6516 | Email: info@lyt.ng | Web: www.LYT.co.ng

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to assist. ‘We were getting a lot of enquiries from international property funds that were looking to enter Nigeria,’ Matanda says.

‘Some even seemed to think that if you’re not in Nigeria then you’re not expanding.’

But as foreign exchange challenges arose, the international interest in Nigeria dried up seemingly overnight.

For Profica Nigeria, this was an opportunity to adjust their business model. ‘Luckily for us, that made a decision early on that we weren’t just going to fashion our business to cater to international clients.

“The company recently completed a large scale production on Owerri Mall, an upscale retail pavilion located within Nigeria that holds the potential to expand ‘Even while the boom was happening, we made a deliberate decision to spread our portfolio to be both international and local.’ This proved an intelligent move, so that when economic difficulties eventually did present themselves, Profica Nigeria still saw funds from local investors. In the darkest moments of the economic crisis, ‘The local business kind of sustained us and left a light on.’

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Overcoming a stuttering market

In recent years, Nigeria’s gas and oil crisis has rocked what has historically been one of the country’s most profitable sectors.

With the fall in oil prices, Profica Nigeria has seen their clients downsizing or tabling projects entirely, at least until the market re-stabilises. Though not an easy obstacle, the company has managed to soften the blow by diversifying their business.

‘As well as commercial office buildings, shopping malls and hotels, we’re also trying to diversify a bit more into other things, such as project managing road construction. So that, even though we have seen difficulties elsewhere, we can perhaps get into other sectors and try to use the prices as an opportunity.’

It’s still early days in the shift, but in spite of everything, Profica Nigeria has still managed to maintain its strength.

Matanda also doesn’t hesitate to admit that at least some of Profica Nigeria’s sustainability and maintenance of their network of clients has to do with being in the right place at the right time.

‘What has held us in this leaner time is that, in terms of partners, we made sure we were dealing with the top end of the sector in terms of partnerships with the right consultants, with the right clients. Part of their core function is to create development products, and if they stop doing

that, then they’re stopping business. They’re not individuals looking to do a one-off project.

These are the guys who are still around in this financial stress.’

Summer on the horizon With oil prices slowly on the rise, Nigeria looks set to flourish again, and Profica Nigeria is looking towards a similarly bright future.

Construction

The company recently completed a large scale production on Owerri Mall, an upscale retail pavilion located within Nigeria that holds the potential to expand. What’s more, the construction created some 2,000 jobs for locals, bolstering the community and is contributing towards getting the country back on its feet, one

project at a time. ‘It’s something anybody in this industry would be proud of, that our work has that residual impact.’

As the market ebbs and flows, Matanda likens Profica Nigeria’s continual success and efforts to maintain a steady influx of business to the changing of the four seasons.

‘The hard work we did during the summer period held us in good stead during the winter period. But effectively, once we move forward and hopefully spring comes, then back into summer, we will be looking to grow further.’ With Profica Nigeria’s track record, this next step seems incredibly achievable.

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Leogem Property Projects w w w . l e o g e m p r o p . c o m

Revolutionising Residences in

Using green design, energy efficient construction and modern architectural style, Leogem Property Projects is proudly improving housing in South Africa. Company Director Mr Dino Christos, Mr Chris Christos, Financial Director, and Spiro Christos, Sales Director speak on the strategies empowering the organisationâ&#x20AC;&#x2122;s prosperity.

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hroughout Johannesburg, demand for housing remains constant, and with spending power in South Africa rising, there is particular market demand being demonstrated from the mid to high income bracket. For almost 25 years, the classically styled and efficiently designed homes and apartments of Leogem Property Projects have proven a cut above the rest â&#x20AC;&#x201C; and that

Construction

“For almost 25 years, the classically styled and efficiently designed homes and apartments of Leogem Property Projects have proven a cut above the rest Johannesburg. “This is a family business, which my father founded in 1992,” he explained.

“The aim has always been to provide South Africans with high quality housing, and that is the core ethos that has guided our progress in almost 25 years of growth.”

Hallmarks of an innovator

success, irrespective of economic dynamics, is owed to the company’s philosophy of quality, integrity and pioneering design.

Mr Dino Christos, the company’s Director, began working at the organisation seventeen years ago. “The passing of the business down a generation to my brother has allowed myself and my brother Chris to take the bull by the horns, as far as growth is concerned,” he says.

That ambition is an assured strategy, given the international competition that is rising across the African continent, the development and urbanisation of which is a key talking point for leading business minds today.

That rapid degree of social evolution is as true of South Africa as anywhere else, and especially pronounced in the capital.

Mr Spiro Christos, Sales Director of Leogem Property Projects, recounts the firm’s journey from its offices in Midrand,

Mr Chris Christos, Financial Director of Leogem Property Projects, elaborates: “The South African construction industry

is much more regulated and formal than it was a decade or so ago. Furthermore, end users have greater expectations of their housing – it is no longer a question of simply having a roof over one’s head.” Indeed, modernisation has paved the way for informed consumers to demonstrate considerable awareness of environmentalism, design efficiency and energy saving solutions when choosing housing. That said, Leogem Property Projects has welcomed these changes. “It has inspired positive improvements and increased competitive positioning from every property player in the country,” Mr Christos confirms.

Inspiring trust

Economic and political challenges in modern South Africa have created unforeseen obstacles for businesses to circumvent. Material costs are high, consumer confidence is below the ideal, and the depreciation of the Rand has had a profound impact on a nation heavily reliant on imports.

Yet despite such dynamics, Leogem Property Projects continues to demonstrate

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ambition, resolve and a roster of effective strategies. “We appreciate that people are tentative, yet housing has always been a game best won by fostering consumer confidence,” Mr Christos notes. “We excel in that regard by meeting the needs of our demographic – energy efficient lighting, specialised glass to facilitate temperature control, as well as thermal insulation. The water boilers that we utilise in our properties can save on users’ bills by up to 60 per cent.”

Building a better future

Modern yet classically stylised, the residences developed by Leogem Property Projects are known for their resilience and longevity, as Mr Christos says: “People buy our houses to live in, rather than rent out. Consumers appreciate our attention to detail.”

Townhouses, apartments and luxury villas all fall under the expertise of Leogem Property Projects, which is responsible for countless notable Johannesburg developments, including Shearwater and the Blue Crane Estates. With consolidated developments adding up to 500 units taking place over the next few years, it is apparent that Leogem Property Projects has the confidence to excel.

Mr Christos affirms, “While 500 may seem a high number, it is indicative of the high demand present in Johannesburg today.

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Urbanisation is very much in effect in South Africa, with more citizens moving to the major cities of the country. That is a dynamic that will not be fading any time soon, so we foresee steady and lucrative growth in the coming years.”

Furthermore, the future stabilisation of the economy and the overarching aspirational element in today’s South Africa bodes very favourably for Leogem Property Projects going forward. Increases in consumer confidence translate into greater demand for housing that befits a higher quality of living – and that is a call that the business is more than ready to answer.

Empowered by his family firm’s philosophy of putting the needs of the people first, Mr Christos sums up the differentiators leading the charge for Leogem’s advancement. “Being a family owned company is very much the secret of our success, because we have a certain understanding and respect that may be lacking in other companies, as well as a common goal that drives us forward. We have confidence in our abilities, together with personally relatable history that enables us to continue building on the foundations we laid almost a quarter of a century ago. We hope to continue our growth and expansion, with the goal of moving into a wider range of areas in South Africa, or even beyond.”

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P r o j e c t s

Concrete Slab Supplies With CSS, there is no project too big or too small.

From the outset, partners Ricky Vasconcelos and Tommy Harper decreed that their companies would set themselves apart from others through a credo of excellence in every facet of their operations – be it design, development, manufacture, or client service.

This commitment, coupled with intensive research into concrete slab

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technology and manufacture on a broad scale, laid the foundations as an organization, as did the quest for excellence manifest itself.

Together Ricky Vasconcelos and Tommy

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Harper lead their professionals in every aspect of the company’s functionsfrom the initial quote, to in-house design, through to on-site supervision.

As Directors, both are actively involved, and are readily available for consultations or on-site visits.

CSS have been supported by Leogem, a client since July 2004, who have consistently used their Fabpanel™ as well as rib & block products in the construction of their Units in the Midrand area.

Manufacturing facilities are situated strategically in the Midvaal area, giving easy access to road infrastructure limiting times delays in the provision of manufactured goods.

www.concreteslabs.co.za

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Siyahamba Engineering

w w w . s i y a h a m b a . c o . z a

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Manufacturing

Opening Siyahamba Engineering is a specialist manufacturer of innovative, customised and patented windows, locks, doors and door gears for the rail and transport industry.

Based in Johannesburg, the company has been in business for nearly 30 years and supplies clients in South Africa and internationally.

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eginning life as Nustart Holdings (Pty) Ltd some 29 years ago, a Black Economic Empowerment (BEE) consortium acquired Siyahamba Engineering in 2003.

At that time it took its current name, and is now a 90% black owned company. Meaning ‘we are moving’ in Zulu/Xhosa, Siyahamba Engineering’s name both reflects the transport industry and its intention to progress.

Siyahamba’s initial focus was to provide railways, predominantly across South Africa, with spare parts for existing doors, dooroperating mechanisms, gears and windows, but within less than a year it became a significant manufacturer of these products.

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E n g i n e e r i n g

Venture Plastics Founded in 1987 as Watson Plastics, and later renamed Venture Plastics, the company has grown from its humble beginnings and currently employees over 80 people.

Our ability to continually deliver on time and in full is made possible by the depth of management and production experience. The core team responsible for manufacturing, supply chain and innovation each have over 20 years polymers experience and are always willing to share their knowledge with customers and suppliers.

For 29 years we have been helping clients across a range of industries to optimise their product ranges, achieve cost savings and commercialise ideas.

Contact us for more information: T: +27 (0)11 824 1420 www.ventureplastics.co.za

The move from supply of parts to manufacture was possible due to Siyahamba Engineering’s insight into the industry and knowledge of what customers wanted as well as what rail passengers need.

Similarly, their website states that they “aim for the quickest possible delivery through anticipating our product demand.”

“Siyahamba Engineering’s name both reflects the transport industry and its intention to progress

Innovative product design to meet demand

The company’s developments have included window and door systems to combat widespread vandalism and theft, such as the vandal-resistant 3 CR12 door system designed to replace the much vandalised aluminium-cast driver doors.

The revolutionary ‘hopper’ windows were a creation of Siyahamba Engineering and, significantly, the design of external sliding doors protected innocent passengers from being thrown out of moving trains during the pre-election train violence of 1992-1994.

These outside sliding doors also have the benefit of both preventing theft and minimising

Kyler Mech Powder Coating ..was established in 2002 at its current location in Anderbolt, Boksburg.

Our factory which includes a workshop is over 2,500m2 in size, equipped with some of the latest equipment and technology available to date. We are an integrated extension arm into our client’s production line to comply with various coating demands.

Kyler Mech offers Undercoat and Top Coat solutions for additional corrosion resistance as well as a 7 stage zinc phosphating process which pre-treats the steel to high levels of corrosion resistance in preparation for powder coating.

For the more competitive price solutions, we also provide the Iron Phosphate process. All our solutions are available for all stainless steel and galvanised material for any industry.

Contact us for more information: T: +27 (0)11 894 7570 T: +27 (0)11 894 7571 www.kmpowdercoating.co.za

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Manufacturing Venture Plastics YOUR PARTNERS IN THERMOPLASTIC PRODUCTS

WE PRIDE OURSELVES ON OUR ABILITY TO WORK WITH OUR CLIENTS TO DEVELOP THEIR PLASTIC PRODUCTS To THEIR FULL POTENTIAL - FROM INITIAL CONCEPTS THROUGH TO FINAL PRODUCTION, WE OFFER VITAL EXPERIENCE. WE CONGRATULATE SIYAHAMBA ON THEIR ONGOING SUCCESS Our services include: • INJECTION MOULDING > UP TO 650 TONNES • VACUUM FORMING > UP TO 1500 x 2500 mm • blow moulding > up to 1000cc • extrusion > pipes & profiles Call: +27 (0)11 824 1420 | Email: plastics@venplas.co.za www.ventureplastics.co.za

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E n g i n e e r i n g

Huge investment in South Africa’s rail infrastructure

“The company attributes its success to understanding the diverse and changing requirements of its clients both in South Africa and beyond the corrosion problem affecting the inside pocket of sliding door systems. More recently the company introduced fireresistant, nylon-based window frames fitted with glass or polycarbonate panels that can be removed for repair without taking out the frame.

Developing systems that are now widely used on passenger trains throughout South Africa, it’s no wonder that Siyahamba’s client base has grown beyond general overhaul contractors to include PRASA (the South African public commuter operator).

The company also supplies to local and international original

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equipment manufacturers, such as Transnet Engineering, Bombadier Transport, General Electric Transport, Alstom (through Gibela Rail) and China South Rail.

The company attributes its success to understanding the diverse and changing requirements of its clients both in South Africa and beyond.

As well as producing original designs that fit with customers’ needs, Siyahamba works to the highest standards, including ISO 9001:2000 accreditation, to ensure it remains a leading manufacturer to the railway coach components industry.

South Africa’s rail system is the most developed in the whole of Africa but, despite this, in 2013 70% of all the country’s freight was moved by road.

A National Infrastructure Plan (NIP) and National Transport Master Plan put in place by the South African government aims to overhaul the transport network with a shift from road to rail freight. Record amounts of money have been invested over the last four years, with a large proportion of this dedicated to rail.

The aim is for South Africa to be the fifth largest railway system in the world by 2019, placing it as a key player in the global freight industry.

By 2019, the goal is for there to be an extra 1,300 diesel and electric locomotives on the tracks, which will have a big impact on business for Siyahamba and the rail industry in general.

The large-scale infrastructure investment will have farreaching benefits for South Africa’s economy as key industries such as iron ore and coal mining will be able to increase capacity with improvements to transport lines. The economy as a whole will prosper with more countries looking to do business in South Africa.

Manufacturing

Speaking to Railway Technology last year, Mike Asefovitz, senior media relations manager at Transnet explained that increased tonnage by rail will improve the country’s overall efficiency. He says: “Our aim is to lower the cost of doing business in South Africa. As we increase our efficiency and become a more reliable transporter, that will transpose into the rest of the economy.

What we anticipate is that this capital investment will give us an additional 128 million tonnes of rail volume. So by the end of the seven-year period, we are looking at transporting some 344 million tonnes of commodities. And that’s really what rail is: a bulk business.”

Supplying rail’s biggest operator

South African state rail freight operator Transnet is one of Siyahamba’s key customers.

Its chief executive Siyabonga Gama recently told Reuters that “Transnet is embarking on a major expansion drive in the rest of the continent. Transnet, which operates nearly three quarters of all Africa’s rail network, [is] opening offices in West and East Africa and looking to deploy its expertise in running ports and pipelines as well as rail.”

Since 2012 Transnet has invested billions in the biggest rail recapitalisation programme in South Africa’s history, building its locomotive fleet and rejuvenating the country’s ports, rail and pipelines infrastructure.

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www.ipad-kenya.com

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For more information about your participation at the event contact: E: benjamin.weinheimer@spintelligent.com | T: +27 21 700 3515 E: jeantite.oloumoussie@spintelligent.com | T: +27 21 700 3508