Africa Outlook Issue 9

WWW.AFRIC AOUtlOOkMAg.COM

Interview with fastjet CEO Ed Winter

GROWTH ON THE MENU

TOWERING ABOVE THE REST 98

18

Unilever Food Solutions helps chefs all over the world “serve tasty, wholesome meals that keep guests coming back for more”

EXCELLING ON A GLOBAL STAGE 118

Helios towers Nigeria provides fully-managed tower sites for the telecoms industry in Nigeria

POWERING UP

56

Mantrac Nigeria distributes and supports the full range of Caterpillar construction machines, power systems and materialhandling equipment

Saab grintek Defence is a South African company with a global reputation

AFRICA OUTOOK ISSUE 09 ALSO THIS ISSUE: ALTRISK | GA INSURANCE | MOI TEACHING AND REFERRAL HOSPITAL | AIR UGANDA

WE Import & Distribute the finest quality Italian products into Africa

Mangiare Bene, Vivere Bene

- eat well, live well

Contact Clifford Barratt, Managing Director Email: Clifford@fratellifoods.co.za Website: www.fratellifoods.co.za

W E l C O M E Reaching for African skies It’s that time of year again where we prepare for the visit of the man in the red suit, power shortages (if you’re in South Africa and have to rely on Eskom), the peak of summer, and of course the annual shutdowns. It’s also that time where you reflect on the past year, 12 months in which a meteor exploded over Russia, a new Pope was appointed and of course Edward Snowden blew the lid on a mass U.S. surveillance operation, a story that continues to run.

Our next issue will see us look back further on 2013 as well as look to 2014 and what we can expect by way of trends. But that’s next month and for now we’ve many, many treats and you shouldn’t view this as some sort of go-between. first off, you’ll have noticed our cover story, an interview with Ed Winter the CEO of fastjet, an ambitious company with a rather ambitious plan to build Africa’s first pan-African low-cost airline. now that’s quite the task but the former pilot who held senior roles at Ukbased British Airways, easyJet and go has all the experience necessary to pull it off. Learn more on page 10.

We also bring you the story of Unilever Food Solutions, the company which helps chefs all over the world “serve tasty, wholesome meals that keep guests coming back for more”, the story of Castrol in South Africa, Mantrac in Nigeria and Concord Cranes an ambitious new South African crane hire company, as well as discuss the successes at Saab grintek Defence, the winner of Best South African Export Company at the inaugural South African Premier Business Awards earlier this year.

Ian Armitage Editor, Outlook Publishing

EDITORIAL Editor: Ian Armitage ian.armitage@outlookpublishing.com

PRODUCTION Production Manager: Clare Durrant clare.durrant@outlookpublishing.com

BUSINESS Sales Director: Nick Norris nick.norris@outlookpublishing.com Sales: Eddie Clinton eddie.clinton@outlookpublishing.com Sales: Donovan Smith donovan.smith@outlookpublishing.com Projects Director: James Mitchell james.mitchell@outlookpublishing.com Project Managers: Sheridan Halls sheridan.halls@outlookpublishing.com Stuart Shirra stuart.shirra@outlookpublishing.com tom Cullum tom.cullum@outlookpublishing.com Ben Wigger ben.wigger@outlookpublishing.com Arron Rampling arron.rampling@outlookpublishing.com Hal Hutchison hal.hutchison@outlookpublishing.com

ACCOUNTS Finance Manager: Suzanne Welsh suzanne.welsh@outlookpublishing.co Office Administrator: Daniel george daniel.george@outlookpublishing.com MAGAZINE DESIGN: Optic Juice ltd IMAGES: getty DIGITAL & IT: Hamit Saka HELPDESK: James leMay

Outlook Publishing Managing Director: Ben Weaver ben.weaver@outlookpublishing.com Chairman: Mark Weaver CONTACT Africa Outlook / UK 22 Wensum Street, Norwich, Uk, NR3 1Hy Sales: +44 (0) 1603 559 551 Editorial: +44 (0) 1603 559 144 Fax: +44 (0) 1603 559 553 Africa Outlook / SA the Colosseum, First Floor, Century Way, Century City, Cape town, 7441 Tel: +27 (0) 21 527 0053 Subscriptions Tel: +44 (0)1603 559 144 ian.armitage@outlookpublishing.com

www.africaoutlookmag.com Follow us on Twitter - @Africa_Outlook

Enjoy the magazine.

WWW.AFRICAOUtlOOkMAg.COM

3

C

O

N

T

E

N

In this issue of Africa Outlook...

10 06

NEWS All the latest news from across Africa

BUSINESS

10

FINANCE

14

Investment profile: Mozambique

Africa Outlook takes a closer look at Mozambique’s business and investment potential

FOOD & DRINK FOCUS G r o w t h o n t h e menu Unilever Food Solutions helps chefs all over the world “serve tasty, wholesome meals that keep guests coming back for more”

18

A winning t as t e f o r l ife Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients, raw materials and functional ingredients

42

4

www.aFRICAoutlookmag.com

S

18

56

108

114

G B F e y es A frican e x p ansi o n Greenbelt Fertilisers, a 100 percent subsidiary of CHC Commodities, plays a major role in Africa’s farming community

48

CONSTRUCTION FOCUS

Reaching for African skies

Fastjet’s CEO Ed Winter has become something of an expert in overcoming obstacles and shares his plans for low-cost travel in Africa

T

R eac h ing new h eig h t s In 2012 Investec facilitated a transaction whereby Concord Cranes Ltd became the holding company of Anglo-V3 Crane Hire and Elcon Crane Hire

52

P o wering u p Mantrac Nigeria distributes and supports the full range of Caterpillar construction machines, power systems and material-handling equipment

56

HEALTHCARE FOCUS

62

M o i Teac h ing an d R eferra l H o s p i t a l Africa Outlook speaks to Dr John Kibosia

FINANCE FOCUS A s s o cia t i o n o f K en y a I nsurers Kenya’s insurance sector is growing. Industry veteran Tom Gichuhi, the CEO of the Association of Kenya Insurers, gives us his insight

70 72

76

P o ise d f o r gr o w t h GA Insurance is a company poised for growth says CEO Vijay Srivastava M ain t aining a nic h e f o cus Altrisk is a specialist long term risk product provider whose reputation has been built around superior underwriting expertise

ENERGY FOCUS

82 88

S o u t h A frica ’ s na t i o na l o i l c o m p an y South Africa’s national oil company PetroSA continues “to perform admirably” R unning S m o o t h l y Castrol South Africa has been making oil since men have been making cars

TELECOMS FOCUS

94

T o wering ab o v e t h e res t Helios Towers Nigeria provides fully-managed tower sites for the telecoms industry in Nigeria

MANUFACTURING FOCUS E x ce l l ing o n a g l o ba l s t age Saab Grintek Defence is a South African company with a global reputation

114

M anufac t uring in S o u t h A frica Foreword by Coenraad Bezuidenhout, Executive Director, Manufacturing Circle

122

A frican ambi t i o n Kansai Plascon is a company with expansion on its mind. Already the premier paint company in South Africa, Plascon was purchased by Japanese company Kansai in 2012

124 134 138

T h e fabric o f a c o mmuni t y For South Africa’s Pep Clothing there is more to life than loss or profit F u l l f l us h Crystal Paper is recognised as being the leading independent tissue paper manufacturer in Africa EVENTS

142

SUPPLY CHAIN FOCUS

104

A c l ear winner Elite Clearing and Forwarding (Pty) Ltd is an expert international shipping company offering comprehensive logistics and freight solutions

108

T h e wings o f E as t A frica Meridiana Africa Airlines Limited, trading as Air Uganda, is a privately owned airline founded in 2007 in Uganda

94 www.aFRICAoutlookmag.com

82 5

N E W S F inance

F inance

Zanu PF unveils plan to save Zimbabwe economy

Property group Attacq lists on JSE Property group Attacq, which was previously known as Atterbury Investment Holdings, has listed on the real estate holdings and development sector of the main board of the JSE. Since its inception eight years ago, the firm has delivered an average compound annual return exceeding 20 percent.

Morne Wilken, Attacq CEO, said: “Listing Attacq will create a foundation to grow the business further. It enables Attacq to access capital efficiently, raise its profile and expand its investor base, all of which should enhance Attacq’s prospects.”

He added: “Attacq’s focus on long-term sustainable capital growth distinguishes it from other JSE-listed property entities, such as REITs that predominantly focus on rental income distribution. When considering Attacq’s listing, we assessed the investor benefits of various structures, including REITs. But, our established structure and business model of delivering sustainable long-term capital appreciation has proven successful and delivered excellent results to our investors. The timing of the listing also places Attacq in an ideal position to invest in excellent development opportunities, especially those at Waterfall Business Estate.”

Attacq’s assets comprise two focus areas: investments and developments. Its portfolio strategy is to hold 65 percent investments and 35 percent developments to optimise long-term sustainable capital growth, enhance total returns to shareholders and mitigate risk.

Wilken explained: “Our investment in completed buildings provides stable

6

and growing income and balance sheet strength to responsibly secure and fund high-growth opportunities within developments. In turn, the group’s developments create a pipeline of highquality investment properties that grows the investment base, as developments are retained rather than realised.”

Attacq’s asset base of R12.5 billion at March 2013 includes landmark commercial and retail assets and developments. Among its developments is the prime Waterfall Business Estate an infill development between Johannesburg and Pretoria.

It also benefits from an African portfolio, which includes Bagatelle Mall of Mauritius and Bagatelle Offices, and has an effective 32.5 percent stake in Atterbury Africa, in partnership with Hyprop Investments and Atterbury Property Holdings, which invests in retail centres and developments across sub-Saharan Africa.

“Our long-term strategy is to achieve an optimal portfolio balance of 70 percent of our assets by value in South Africa, 20 percent in other countries on the African continent and 10 percent internationally outside Africa,” said Wilken. “We are already making good progress on this objective and will continue to seek opportunities to further this goal as well as expand our development pipeline to grow longterm prospects.”

Zimbabwe’s President Robert Mugabe has rubberstamped a new plan designed to lift the country’s aligning economy.

The plan, called the Zimbabwe Agenda for Socio-Economic Transformation (Zim Asset), is a fiveyear economic plan designed to make good on a raft of Zanu PF election promises which include rolling out the indigenisation programme to poor Zimbabweans.

“All the source documents recognise the continued existence of the illegal economic sanctions, subversive activities and interference in the country’s internal affairs by some hostile countries. This therefore underlines the need to come up with sanctions busting strategies and to put emphasis on reliance on local funding for the plan, hence Zim Asset’s focus on the full exploitation of and value addition to the country’s abundant resources,’’ said Finance Minister Patrick Chinamasa.

The blueprint projects that the economy will grow by an average of 7.3 percent, improve by 3.4 percent in 2013, 6.1 percent in 2014 and continue on an upward growth trajectory to 9.9 percent by 2018.

The policy has four strategic clusters that the government will prioritise - food security and nutrition, social services and poverty eradication, infrastructure and utilities, and value addition and beneficiation.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

B usiness

Westinghouse in SA nuclear MoU Toshiba Corporation’s Westinghouse Electric Company has signed a Memorandum of Understanding (MoU) with South Africa’s Sebata Group in preparation for what it calls “the potential construction” of Westinghouse AP1000 nuclear power plants in the country.

In a statement, Westinghouse said the MoU marks the start of a collaboration aimed at the “development of an engineeringled organisation, involved in a variety of disciplines, including safety, health, environment, risk and quality (SHERQ) and authorised inspection agency services, manufacturing quality support and skills development

and training in the nuclear industry sector”.

Westinghouse has been active in South Africa’s nuclear industry, mainly through support to the Koeberg Nuclear Power Station (pictured), since the 1990s and is at the origin of the nuclear fleet technology in the country – South Africa’s two reactors are Westinghouse-licensed.

S por t

“This important agreement with Sebata Group not only reaffirms our pledge to use local talent and resources, but our commitment to develop and support the South African nuclear industry,” said François Harari, Westinghouse vice president and managing director for France, Benelux and South Africa.

“Westinghouse and Sebata Group will utilise their complementary skills in upcoming projects to further develop the expertise required for an eventual nuclear build project in South Africa.

Supplier development is critical to Westinghouse and that’s why we think globally but act locally.”

Westinghouse recently signed an agreement with the South African Nuclear Energy Corporation (Necsa) to investigate and cooperate in the development of local fabrication capabilities for fuel assembly components.

N ews

Puma ends Bafana Bafana sponsorship Just a few days after banking group Absa ended its six-year association with Bafana Bafana, sportswear manufacturer Puma has ended its association with the South African FA (Safa) following the match-fixing scandal involving the national team.

“Following match fixing allegations made against Safa along with inappropriate responses from within the football organisation (including the suspension of senior officials), PUMA terminated the contract with immediate effect,” the company announced. “PUMA abides by a code of ethics in all areas of its business operations and expects its partners to adhere to the same values. PUMA would

like to state that with notable exception to the issues in question it enjoyed a good working relationship with SAFA, and wishes them well for the future.”

In December, a Fifa investigation found ‘compelling evidence’ that four South Africa friendlies had been fixed prior to their hosting of the 2010 World Cup.

DR Congo M23 rebels chased from strongholds, says UN The Democratic Republic of Congo’s M23 rebel movement is all but finished as a military threat, according to reports citing the UN’s special envoy in the country.

“Practically all M23 positions were abandoned yesterday, except a for small triangle at the Rwandan border,” Martin Kobler is reported to have told the UN Security Council by video-link at a closed door meeting.

The M23 movement emerged in April 2012 after a mutiny by former rebels who had been taken into the DR Congo army under a 2009 deal.

Peace talks between the government and M23, hosted by neighbouring Uganda, recently broke down.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

7

N E W S B usiness

De Beers begins construction of new underground mine in Limpopo De Beers has begun construction on a new R20 billion underground mine to extend the life of its open-pit Venetia diamond mine in Limpopo to beyond 2040.

“The investment will extend the life of Venetia beyond 2040 and replace the open pit as South Africa’s largest diamond mine,” the De Beers Group said in a statement.

“With underground production expected to commence in 2021, over its life, the mine will treat approximately 130 million tonnes of ore, containing an estimated 96 million carats. The Mine will also support over 8,000 jobs directly, and a further 5,000 through the supply chain – benefiting the South African economy,” it added.

South African President Jacob Zuma praised the company’s

investment decision, explaining, “This R20 billion investment in the diamond industry, the biggest single investment in the diamond industry in decades, signals that indeed our mining sector is poised for growth, and that it has a bright future.”

Minister of Mineral Resources, Susan Shabangu, said it boded well for the economy of the province.

“The launch of this underground mine shows that South Africa remains an investment destination of choice and, through our mining laws, we will continue to ensure that this

Of the 20 economies improving business regulation the most since Sub-Saharan Africa 2009, nine are in Sub-Saharan Africa: ‘improving business Burundi, Sierra Leone, Guinearegulation’ says Bissau, Rwanda, Togo, Benin, World Bank Liberia, Côte d’Ivoire, and Guinea.

“It is encouraging to see so many Sub-Saharan Africa continues to countries in Sub-Saharan Africa record a large number of reforms engaged in reforms aimed aimed at easing the regulatory at reducing burdensome regulations burden on local entrepreneurs, and building up stronger legal according to the World Bank’s 2014 institutions. In 2012/13, more than Doing Business report. twice as many economies in the The report’s data shows that, region reformed as in 2005,” said of 47 economies in the region, 31 Augusto Lopez-Claros, Director, implemented at least one business Global Indicators and Analysis, regulatory reform in 2012/13.

World Bank Group. “Despite Rwanda, Côte d’Ivoire, and Burundi these achievements, more can be were among the 10 economies globally done to improve the quality of the improving business regulation the most. rules underpinning the activities

investment sustainably benefits mining communities and laboursending areas.”

Mark Cutifani, chief executive of Anglo American and chairperson of the De Beers Group, said Anglo had invested nearly R200 billion in South Africa, emphasising its “commitment and making a real difference for South Africa and all South Africans”.

“The positive social impact of skills development, the acquisition of economically valuable experience and the potential to uplift rural and sometimes poorer communities is what exists here at the heart of Venetia,” he said.

Philippe Mellier, chief executive of the De Beers group, said the decision to build an underground mine at Venetia was a vote of confidence by shareholders.

“Venetia will support South Africa’s mining economy for generations to come, and make diamond moments possible for millions of people around the world.”

B usiness

8

of the private sector, to ensure continued convergence toward the better practices seen elsewhere in the world.”

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

B usiness

Paramount Trailers opens new manufacturing facility One of South Africa’s leading commercial trailer manufacturers, Paramount Trailers, has opened a new state-of-the-art manufacturing facility in Midvaal.

“This is a reflection of our commitment to investing in this industry and becoming a leader in customised trailer manufacturing across the African continent,” said Paramount Trailers CEO Fernando Marques.

The family-owned business has been based in Alrode, south of Johannesburg, for the past 17 years and over time acquired numerous new premises around the initial offices to facilitate the company growth.

In 2011, a decision was taken to purchase land in the Kliprivier Business Park and develop a new manufacturing plant.

“We had outgrown our existing premises and it was necessary for us to upgrade our facilities,” said Warren Marques, Paramount Trailers MD. “The new premises will enable us to not only significantly increase the number of trailers we are manufacturing on a monthly basis but to also operate more efficiently.”

The professional operational facilities allow for a significant capacity increase in the number of trailers that can be manufactured monthly.

In addition, new equipment has been purchased to ensure that the

latest innovations in customised trailer manufacturing will be provided.

Marques is determined that no matter how large the company grows it is still imperative that a personal relationship is maintained with all clients.

“Our reputation and success can be attributed not only to the excellent trailers we produce but the superb client relationships we foster,” he said.

In anticipation of the move, and the increase in manufacturing capacity and efficiency, Paramount Trailers has already experienced a significant increase in demand and the company has increased its staff complement by 41 percent over the past four months, additional employees joining the workshop, administration, sales and design departments.

“We have now entered the premier division in this industry,” said Marques.

“We are proud of what we have built over nearly two decades, but the time has come for Paramount Trailers to increase our footprint in South Africa and across the SADC region.”

N ews

N ews

Renamo ends Mozambique peace deal

Ethiopia bans citizens from travelling overseas for work

Mozambique’s Renamo opposition movement has ended its 1992 peace pact with the ruling Frelimo party, which ended the country’s civil war, after government forces attacked and captured the base of its leader Afonso Dhlakama.

Renamo spokesman Fernando Mazanga told the Reuters news agency that the attack was an attempt to assassinate Mr Dhlakama but he managed to escape.

“Peace is over in the country... The responsibility lies with the Frelimo government because they didn’t want to listen to Renamo’s grievances,” he said.

About a million people were killed in the brutal civil war which lasted from 1975 to 1992 and the country’s economy has been booming ever since.

There are fears the country will slip back into chaos.

According to the state-run Erta news agency, Ethiopia’s government has temporarily banned its citizens from travelling abroad to look for work.

It has also provisionally barred employment agencies from facilitating travel abroad.

In Erta’s report, the Ministry of Foreign Affairs was quoted as saying countless Ethiopians had lost their lives or “undergone untold physical and psychological traumas due to illegal human trafficking”.

The government had taken various measures, including setting up a national council and a taskforce, to protect its citizens but they had not been able to “address the problem effectively”.

The travel ban will remain in place until a “lasting solution” is found.

go to www.aFRICAoutlookmag.com/news for all of the latest news from africa

9

f a s t j e t

fastjet CEO Ed Winter has become something of an expert in overcoming obstacles and shares his plans for low-cost travel in Africa.

Writer Ian Armitage

10

www.aFRICAoutlookmag.com

B

U

S

I

N

ESS

irline industry veteran Ed Winter is a man with a rather ambitious plan – build the first panAfrican low-cost airline.

Now that is quite the task, but the former pilot who held senior roles at UK-based British Airways, easyJet and Go has all the experience necessary to pull it off.

“Africa is without doubt aviation’s final frontier,” he says. “But it is an environment where protectionism, a lack of infrastructure and bureaucracy have held things back.

“Africa is in desperate need of good aviation connectivity. A billion people live in Africa but it has just three percent of the world’s aviation. If you look at it, every city is a long distance to the next one, poorly serviced by road and rail.

There’s usually a jungle, mountain, river or lake in the way. Aviation should be a much bigger feature of the African economy than it is.”

And with Africa’s economies growing, there are an increasing number of people with the money to fly.

It makes good business sense.

“Our model relies on making air travel more affordable to the burgeoning middle class,” says Winter.

London-listed fastjet was created following its acquisition of the African airline Fly540 and operates from four bases in Kenya, Tanzania, Ghana and Angola.

“We launched flights under the fastjet brand in Tanzania utilising our Airbus A319 fleet at the end of 2012 and currently fly four routes in Tanzania,” he says. “Of course, in October this year, we launched, after some considerable delays, our first international flights between Tanzania’s commercial hub Dar es Salaam and Johannesburg in South Africa, which represents a new era for us. It has been more difficult than we initially thought but we are delighted we finally got here. Until now that route has been prohibitively

www.aFRICAoutlookmag.com

11

f a st j et

expensive for many people, with incumbents charging crazy prices, which restricts the market size. But the launch of this service offers a new, affordable and reliable option to both Tanzanians and South Africans – we’re competing head-to-head with South African Airways to provide real value for money flights. We believe that with our low fares we can stimulate demand on this route significantly.”

It is the first of several planned international routes for fastjet from Tanzania and other potential new bases throughout Africa.

Flights between the two cities will initially be operated by fastjet three times a week on Mondays, Wednesdays and Fridays, increasing in frequency as soon as consumer demand dictates.

The plan is to use its Tanzanian base as a springboard in much the same way that easyJet spread across Europe in the 1990s, when it exploited the opportunity offered by the newly liberalised single market.

“There is currently only one other international route within Africa operated by low-cost carriers apart from our Dar es Salaam/Johannesburg route,” says Winter. “Building on our existing operation and the strong consumer faith in our brand, the opportunities for us to penetrate the intra-Africa market are huge but so are the challenges.”

12

www.aFRICAoutlookmag.com

Indeed, Africa’s low-cost carriers face strong headwinds. The main problem is costs. Governments impose large taxes on fuel and tickets, and airlines are charged higher insurance premiums than established ones in other countries.

“Europe’s budget-airline boom in the 1990s was made possible by an open sky agreement,” Winter says.

“But in Africa it is not open sky. We’re waiting to see the outcome of a court case where Comair (operating British Airways and kulula.com) is challenging newcomer low-cost airline FlySafair from operating domestically in South Africa because of ownership regulations. It will have serious ramifications because if you move towards liberalisation and allow airlines to operate in a competitive, free market you drive airlines into efficiency.

If you look at Europe, the low-cost airlines like easyJet or Ryanair are now carrying hundreds of millions of people who wouldn’t have travelled before.

In the background, the old traditional airlines like British Airways, Air France and KLM are still surviving and thriving, becoming far more efficient. What you end up with is far better connectivity and an environment where the consumer wins.”

On November 1, the day we talked to Winter, fastjet launched services to Mbeya in Tanzania. It is an important domestic destination for the airline,

B

U

S

I

which he says “given its location in the south-west of the country, close to the border, gives us access to a catchment that spreads into neighbouring countries.”

He expects to add further international routes over the next few months, including to destinations in Zambia and Malawi. “fastjet has been on an incredible journey since we started flying domestically in Tanzania with a single A319 plane nearly 12 months ago between Dar es Salaam, Mwanza, and Kilimanjaro. With Mbeya, our services will be going into the new Songwe Airport, which has been upgraded to allow it to handle jet aircraft operating to international standards.

We have worked hard with Tanzanian authorities and the Civil Aviation Authority to get the right facilities in place. Dar es Salaam will remain the focal point for our international expansion - destinations like Lusaka, Harare, Maputo, Lilongwe, Entebbe, Juba, Nairobi and Mombasa are all in our sights. In the future I can envisage routes from Kilimanjaro and Zanzibar to Johannesburg. We’re looking forward to announcing some more international routes pretty soon and we are confident in the potential of our long-term strategy to become the panAfrican low cost airline of choice.”

Winter hopes to have a South African operation up and running soon and said that local law requires airlines to be 75 percent owned by a domestic firm, another challenge and something that has so far stopped fastjet from getting into the market there.

“Our business model actively encourages giving up equity to local partners but unlike other franchise businesses such as restaurants or the hotel trade, the airline industry has standards on which it simply cannot compromise, given the safety factor.” fastjet’s solution is a management contract that will require partners to

N

E

S

S

give up control of matters such as safety, pilot training and maintenance.

“What we want to create is a series of fastjet airlines. To the consumer it is all one airline because it will offer the same levels of punctuality and reliability, the same customer service and be sold as part of the same network. Now clearly the passenger needs to be told at some point that they are being carried by fastjet SA or fastjet Tanzania etc. and that they are separate companies but if we can create that series of fastjet airlines around Africa to the consumer that becomes something very similar to the easyJet model around Europe.

The challenge for us is how do we control that quality and reliability across all those airlines? One area we are making progress is maintenance which is very important from a lot of aspects – costs, flight safety and reliability. So the maintenance contract is vital and rather than rely on lots of different maintenance providers, we did requests for proposals with several European maintenance repair organisations and Sabena Technics came out as being the best and serves our structure. Therefore each of the fastjet airlines will have an arrangement as part of that global contract so the same standards, quality and reliability will be across the airlines.

It is that sort of thing that will enable us to control the brand and reliability across the pan-African network.”

Another urgent matter on the agenda is the need to find a chairman, a role Winter has temporarily assumed.

“We haven’t progressed the search as quickly as we’d have liked,” he says.

But the future is bright.

“We’re excited. The low-cost model is all about market stimulation. It is not about market share. It is about going into a market place that is constrained because prices are too high, coming in with a reasonable, flexible fare and stimulating demand.

The fact that the middle classes are growing rapidly just adds to the rate of market expansion.

“I think we’re doing just that.”

Analysts believe Africa is ready for an airline with the ambition of fastjet and that a commonly branded airline is a brilliant idea.

When flying in Tanzania from capital Dar es Salaam to Kilimanjaro or Mwanza, Winter says, 38 percent of passengers are first-time flyers, testament to Africa’s potential for growth. fastjet flights in Tanzania sell for as little as $20.

To learn more visit www.fastjet.com.

www.aFRICAoutlookmag.com

13

I n v estment

I n v es t men t p r o fi l e 14

p r o f i l e

Mozambique

Africa Outlook takes a closer look at Mozambique’s business and investment potential.

Writer Ian Armitage

www.aFRICAoutlookmag.com

F

I

N

A

ozambique is a rising economic power and real GDP growth has averaged eight percent per year over the last ten years, driven by bumper coal and gas discoveries, according to the African Development Bank.

But things seem to be slowing and the country’s economy grew at just 4.8 percent in the first quarter of 2013, thanks to extensive flooding in the Limpopo Valley which saw agriculture, an industry that constitutes around 23 percent of GDP, register a negative growth rate of 2.6 percent compared to the first quarter of 2012. The manufacturing sector also contracted.

That aside, natural resourcebased mega-projects continue to be a particular boon for the Mozambican economy. They have spurred infrastructure development and helped diversify Mozambique’s exports away from agriculture.

Earlier this year, Australian mining services company WorleyParsons won a contract to build a 584kmlong rail line connecting Brazilian resources giant Vale’s coal mine in Mozambique with the Port of Nacala in the country’s northeast. When it is finished, the rail link will be able to transport 18 million tonnes of coal a year. The Nacala Rail Corridor Project will be undertaken

by WorleyParsons’ Mozambique and South Africa divisions.

WorleyParsons will also perform the detailed design of the rail facilities and maintenance complex at Nacala.

The contract was awarded by Corredor Do Desenvolvimento Do Norte S.A. (CDN).

“We are delighted that Vale has chosen WorleyParsons for this critical infrastructure project and we look forward to assisting Vale with the achievement of its business objectives in Mozambique,” WorleyParsons CEO Andrew Wood said.

N

C

E

They aren’t the only ones benefiting.

Aveng Manufacturing, a division of Aveng, one of South Africa’s top diversified engineering and construction groups, has also enjoyed success in Mozambique where it is looking at leveraging further opportunities in the country and wider region. It opened an office in Maputo as part of its expansion in the country earlier this year, responding to rapid economic growth by constructing a $17 million factory in Tete province to produce materials for the country’s huge infrastructure projects. Aveng Manufacturing Lennings Rail Services was awarded a contract for section two of the Nacala Corridor Project and is constructing a 62.5km rail line.

“Aveng Manufacturing has factories in Swaziland and Zambia and, in partnership with Aveng Steel, has established two new manufacturing and processing plants in Tete, Mozambique, to serve coal mining and related infrastructure development in the province. The steel factory commenced production in April 2013. The concrete products factory is expected to commence operation in January 2014 and is well positioned to supply pipes, culverts and railway sleepers to the mining and rail sectors in Mozambique,” Aveng says in its 2013 integrated annual report. “The operating group

continued to experience growth in the export of its concrete and steel products to Mozambique and Zambia and is exploring opportunities to build factories in other growth markets in west and east Africa where it does not currently have a presence.”

The future it seems is bright.

“Mozambique’s transition from a post-conflict country to one of Africa’s “frontier economies” has been nothing short of impressive,” says the World Bank. “Economic growth – spurred on by political stability, steady macroeconomic management, reconstruction, and structural reforms – has been bolstered by a boom in large foreign investments in the burgeoning energy and natural resources sectors.

The country has become a world-class destination for mining and natural gas development. Vast untapped coal reserves have attracted multinationals such as Brazil’s Vale and Australian Rio Tinto. Recent figures indicate that foreign direct investment (FDI) doubled to US$5.2 billion in 2012. The country’s recent achievement of Extractive Industry Transparency Initiative (EITI) compliant status (October 2012) is an important milestone in the country’s economic development. Alongside its natural resources, Mozambique’s long coastline positions it as a natural gateway to global markets for neighbouring land-locked countries.”

www.aFRICAoutlookmag.com

15

I n v estment

p r o f i l e

The World Bank predicts the country’s economy to increase by seven percent this year and one man who is more than aware of Mozambique’s potential is Simon Everest, Country Manager for Coca-Cola Sabco in Mozambique.

Coca-Cola Sabco has a huge 87 percent share of the carbonated drink market in the country and has big plans to grow the brand - and Everest expects double-digit growth in the next two to three years.

Conscious that new competitors are being drawn by Mozambique’s increasingly attractive economy as oil, gas and mining operations grow, he is working to raise the company’s game.

Coca-Cola however has clear advantages in Mozambique. It’s been operating there since 1994 when restrictions on South African businesses operating in Africa were lifted and it’s built up enormous brand loyalty, a big factor in Africa’s markets.

The company also has what Everest describes as “the best distribution

16

system in Mozambique and 1,000 experienced staff members” and it’s strategically placed throughout the elongated country with three plants: one in Nampula servicing the North, another in Chimoio servicing central regions and a plant in the capital Maputo servicing the Southern provinces.

Everest says the locations were carefully chosen because of their geographic and strategic importance, with Nampula covering Northern provinces and Chimoio placed equidistantly between the port of Beira and the coal-producing Tete region.

While the country’s roads could “still do with some work” there is growing investment into its infrastructure to upgrade its railway connections, roads and ports.

The company has committed itself to the country and to increasing its production capacity to meet market demands.

www.aFRICAoutlookmag.com

“We’re investing $170,000 over the next three years,” says Everest.

This includes installing a brand new PET production line, a German-made Krones line at the Chimoio factory, which will triple PET capacity, which is desperately needed.

They are also constructing a new factory in Maputo where the present facility is too small for production needs. The new facility will ultimately produce 140 million cases annually.

Phase one of the process is due to be completed by the end of 2016 and will put capacity at about 95 million cases.

“We are making a very significant investment because apart from the production plant we are also investing in coolers, vehicles and people,” says Everest.

Mr Everest, who joined the firm in November 2010, saw the potential of the country and the company but was also aware of big challenges like capacity constraints that had to

F

I

N

A

be overcome to reach Coca-Cola’s full potential.

While he is happy with Mozambique’s and his company’s economic prognosis and growth rates, he’s aware that the rate of social upliftment is lagging behind.

“If you look at Maputo you can see a lot of the infrastructure, housing being developed, you’ve got plenty of sports stadiums and there is a very nice airport there now so there are signs of wealth beginning to come through.

“Is there wealth actually getting down to the ordinary man in the street? Not at this stage, I think it will take another few years before it starts trickling through to smaller businesses,” he says.

The Coco-Cola brand is strongly associated with social responsibility initiatives and he is especially proud of its campaign to boost local entrepreneurs, particularly women.

The company provides each vendor with a big ice-chest and a

N

C

E

certain amount of core product and support. There have been “a number of really good stories of women who have from starting with one ice box ended up owning a number of stalls,” Everest says.

Even more importantly for the entrepreneurs, the company believes that each ice box placed out in the market “supports ten to 25 people.”

The project falls into the global company’s 5 BY 20 campaign, launched

by Muhtar Kent, Chairman of the CocoCola company, which aims to assist in the empowerment of five million women by 2020.

Everest’s excited about the challenges facing Coca-Cola Sabco in Mozambique and happy with the moves to increase capacity.

“I think by the end of this year we will, for the first time in a very long time, have sufficient capacity to satisfy demand… with the new investment and PET line we are in a very good spot,” he says.

It all sounds wonderful, but could there be trouble ahead? Indeed there might. Mozambique’s Renamo opposition movement, the guerrilla organisation that fought the existing Frelimo-backed government in a civil war, recently ended the 1992 peace pact after government forces attacked and captured the base of its leader Afonso Dhlakama. Renamo spokesman Fernando Mazanga told the Reuters news agency that the attack was an attempt to assassinate Mr Dhlakama but he managed to escape. “Peace is over in the country... The responsibility lies with the Frelimo government because they didn’t want to listen to Renamo’s grievances,” he said.

About a million people were killed in the brutal civil war which lasted from 1975 to 1992 and the country’s economy has been booming ever since. There are fears it will slip back into chaos and Renamo has certainly shaken investor confidence.

www.aFRICAoutlookmag.com

17

C O U N M I l pE av NE yr

N f O a M O Ed

S O l U T I O N S

Growth ????? ?????

IS oN thE MENU ?????????? ???????????????? ???????????????

????????????????

Unilever Food Solutions helps chefs all over the world “serve tasty, wholesome meals that keep guests coming back for more”.

Writer Chris Farnell Project manager James Mitchell

18

WWW.AFRICAOUtlOOkMAg.COM

f EO a O T Ud r &E

d

r

I

N

k

nilever is one of the most recognised names in the food industry around the world. If you go to your fridge right now there’s a pretty good chance you’ll find something with the word Unilever somewhere on the label. Among the many facets of the business is Unilever Food Solutions, the professional culinary division which is dedicated to offering products and services to the food service market all over the world. As managing director Michel Mellis explains, “We work with powerful global brands such as knorr, Hellmann’s, Robertsons and Carte d’Or in combination with local names such Marvello, Meadowland and Fine Foods in order to offer culinary solutions to all kinds of operators, ranging from hotels, restaurants, contract caterers to quick service restaurants.”

WWW.AFRICAOUtlOOkMAg.COM

19

U ni l e v e r

Foo d

S o l utions

Of course, while Unilever is a globally recognised brand, Unilever Food Solutions can’t rely on brand recognition alone to bring in business. It’s unique selling point, Mellis says, is the “incomparable end results our customers can achieve on meal preparation through our brands and services”.

“We don’t just sell top quality products and brands, but we also offer services in the areas of menu organisation, kitchen preparation and guest satisfaction,” he says.

The main issue affecting Unilever Food Solutions and the whole industry is a combination of inflation and lower consumer income, which pressures costs on one side and takes value off the market on the other”

ENS africa ENSafrica is the largest law firm and the only one of its kind in Africa. The firm benchmarks itself according to international standards whilst retaining a uniquely African focus, making it well-equipped to advise clients wherever they may choose to do business.

The firm has approximately 550 practitioners and was established over 100 years ago, making it one of the oldest full-service law firms in Africa. The firm has a breadth and depth of experience and specialist expertise that span all areas of law, tax, forensics and IP. As a law firm based in Africa, ENSafrica has easy access to clients and their markets and understand the different political, cultural, lingual and regulatory factors of working in African countries.

Whether dealing with the complexity of a multi-jurisdictional project, or the establishment of a start-up business in one African country, ENSafrica’s localised experience and expertise ensures that clients obtain the benefit of scale and scope when doing business in Africa.

ENSafrica is a recognised marketleader and is ranked by Chambers and Partners as a leading law firm.

Email Info@ensafrica.com

www.ensafrica.com

20

www.aFRICAoutlookmag.com

f e a tu r e

www.aFRICAoutlookmag.com

21

brandinc/4036/e

A new branch on the family tree.

Unilever’s on-going quest for a greener future, and Nashua’s firm commitment to reducing their clients’ carbon footprints has led to a natural business solutions partnership. Nashua proposed a solution that is custom-built to Unilever’s needs, lowering the amount of paper printed while still maintaining a high level of efficiency. The energy-saving functionality built into all Nashua’s devices reduces electricity consumption when not in use, another planet saving feature.

With our like-minded approaches to business, we look forward to this partnership blossoming.

Tel: +27 31 940 9120 email: info@nashuadbn.co.za www.nashua.co.za

DURBAN

/NashuaLTD

@nashuasolutions

U ni l e v e r

Foo d

S o l utions

We don’t just sell top quality products and brands, but we also offer services in the areas of menu organisation, kitchen preparation and guest satisfaction”

This combination of high quality products and excellent service has been key in consolidating Unilever Food Solutions’ position as a market leader, but the company is still setting its sights higher even in the face of a difficult financial climate. “This year we are growing at twice the GDP index in like-for-like business, which is a relatively good performance,” Mellis says. “However we feel there are plenty of opportunities to accelerate.

The main issue affecting Unilever Food Solutions and the whole industry is a combination of inflation and lower consumer income, which pressures costs on one side and takes value off the market on the other.”

24

www.aFRICAoutlookmag.com

f e a tu r e www.pwc.co.za

Advising you in changing times To find out more on how we can assist you, please contact our Durban office in South Africa on +27 (0) 31 271 2000.

Sometimes bigger is better. Tap into a world of possibilities with PwC. There’s much to be said for world-class solutions and a global network of expertise. We establish relationships to bring real value to our clients, our people and the communities in which we operate.

Contact us for tax, advisory and assurance services tailored to your specific needs.

©2013. PricewaterhouseCoopers (“PwC”). All rights reserved. (13-13943)www.aFRICAoutlookmag.com

25

U ni l e v e r

Foo d

S o l utions

However, while the economic climate is one thing, Mellis believes the biggest challenge facing the industry right now is something far more prosaic. “Our biggest challenge has been communication,” he admits.

“Because the market is so pulverised and operators don’t follow any specific communication channel exclusively, it is a real challenge to talk to our target food service market. That’s why we must develop multiple forms of communication in search of our customers. Then of course there is also the challenge of operating in an emerging market environment, where the economy is not particularly strong, there is a high unemployment rate, volatile currency and social inequality.”

Touch Design Ltd The challenge

We have such well known and loved brands... we must leverage into new markets”

Unilever’s Robertsons brand is the category leader in SA. The challenge was to redesign the bottle, cap & refill box and branding & graphics, across over 120 SKUs, to improve shelf navigation, merchandising, and encourage consumers to discover and expand their repertoire of Robertsons herb and spices.

The solution The new ownable bottle design and ingenious user-friendly custom cap - the world’s first injection moulded, orientated, multi-functional closure on a glass bottle – was the result of structural design based on insight, usage and ergonomics.

The results From brief to launch within just 18 months! This included structure, graphics and a new packaging line.

The 6 month sales target was achieved within just 5 months; volume increased by 8%; and turnover by 14%.

The pack scored 9.2 out of 10 with Unilever’s home testers - the highest score ever recorded!

International awards include: winner of Ambient Food Category Gold Medal; Overall Goldpack Award IPSA 2013; and Runner up International Food and Beverage awards 2013.

The Iconic Brand Survey 2013 now recognises the Robertsons brand as a top 10 South African brand. ...which we are very proud of.

Tel 00 44 (0) 1344 894507 Email heidim@touchpackdesign.com

www.touchpackdesign.com

26

www.aFRICAoutlookmag.com

f

e

a

e Industry’s best kept secret . . .

tu

r

e

“touch are small enough to

big enough to cope”

Unilever

“No on-cost, and

uplift!”

Mars

“

“

” Birds Eye “Brief to launch and

uplift in 18 months! . . . touch rocks!”

Unilever SA

. . . that everyone’s talking about!

for details on how we can touch your brand call Heidi Maxwell on +44(0) 1344 894 524 email heidim@touchdesign.com or visit us at www.touchdesign.com www.aFRICAoutlookmag.com

27

U ni l e v e r

Foo d

S o l utions

In the face of these diverse challenges, the most important thing is for Unilever Food Solutions to have a team with the skills and experience to deliver the very best. For Mellis, ensuring the business has the best talent is an absolute priority. “We make sure we have the best people by attracting the best talents, developing them and making sure they stay with us. The care we take in creating a great work environment has been recognised. This year Unilever was elected best employer to work for, which obviously helps tremendously in finding people who are willing to work for us. We also have probably one of the best development programmes in the market, which includes real global exposure and local training that ranges from market insights to leadership behaviour, as well as on the job coaching/mentoring.

GEA Process Engineering

We make sure we have the best people by attracting the best talents, developing them and making sure they stay with us”

G

EA Process Engineering is a global leader in the provision of hygienic process equipment and turnkey process lines for the food industry within liquid and power process engineering.

Powder Processing. GEA offer a range of dryers for handling fluid, paste and moist powder, particulate and granulate feeds as well as powder handling and packaging systems Liquid Processing. GEA supply complete processing lines or equipment that can be integrated into an existing liquid processing system or combined with downstream systems to a complete production line or turnkey installation Concentration & Pre-treatment.

Concentration of liquid streams is used to increase the solids content and/or achieve a volume reduction by removing water. Concentration may be a standalone operation, but is also an important upstream step in a drying process Process Automation Solutions. Our global network ensures best practice process automation solutions – every time – everywhere After Sales & Service. We provide a single source for the procurement of technical service, spare parts, automation support and training. Our complete approach is further enhanced with our web based tool GEA Assist.

Customers for Life!

South Africa Tel: + 27 11 805 6910 Email: info.za@gea.com United Kingdom Tel: +44 1925 812650 Email: info.gpuk@gea.com

www.gea.com

28

www.aFRICAoutlookmag.com

f e a tu r e

Together, we can make it!

GEA Process Engineering is recognised as an international leader in food processing technology, setting the trend in process engineering and plant design. From the provision of hygienic liquid process equipment to turning food products into powder types - our expertise and know-how covers all aspects of food processing. GEA is your partner in excellence. Together, we can make it.

GEA Liquid Processing (Pty) Ltd

GEA Process Engineering Ltd

Midrand, South Africa Tel +27 11 805 6910, Email info.za@gea.com

Warrington, United Kingdom Tel +44 1925 812650, Email info.gpuk@gea.com

engineering for a better world

www.gea.com

GEA Process Engineering www.aFRICAoutlookmag.com

29

U ni l e v e r

Foo d

S o l utions

With top of the range talent and brands that are known and loved the world over, Unilever Food Solutions is in a great position right now, and the business intends to make the very most of that�

30

www.aFRICAoutlookmag.com

f e a tu r e

www.aFRICAoutlookmag.com

31

U N I l E v E r

f O O d

S O l U T I O N S

TAPFLO GROUP

t

apflo is a Swedish manufacturer of air operated diaphragm pumps as well as horizontal centrifugal pumps & range of magnetic drive pumps. the company was originally established as a pump distribution company founded in 1980. the present company product program includes approximately 50 different models for all needs.

Tapflo is represented by own companies in 25 countries and by independent sales companies in another 20 countries and has app 350 employees.

Since 1997 Tapflo has been present in the South African market with offices in KZn, gauteng, and Eastern Cape & Western Cape. With personal service and years of experience in liquid handling Tapflo offers competent advice in most applications.

The Tapflo Group, including Tapflo (Pty) ltd, will actively incorporate the on-going assessment, nurturing and training of their staff, within a planned structure, for the long term benefit of both the staff member and for the group as a whole.

If you are interested in developing your career and are a good performer, a major global company like us will always have a place for your next step”

32

However, investing so heavily in the company’s staff can be a doubleedged sword. When your company has the best talent, it makes them a rich target for head hunters. “the real challenge becomes preventing other companies tempting our talent away after we’ve worked with them for so long,” Mellis admits.

“We strive to avoid this by offering great career possibilities combined with the pride of working for a company with such high ethical principles. If you are interested in developing your career and are a good performer, a major global company like us will always have a place for your next step.”

With top of the range talent and brands that are known and loved the world over, Unilever Food Solutions is in a great position right now, and the business intends to make the very most of that.

WWW.AFRICAOUtlOOkMAg.COM

Product range Air Operated Diaphragm Pumps Horizontal centrifugal pumps Vertical centrifugal pumps Self-Priming centrifugal pumps Mag drive centrifugal pumps Rotary lobe pumps Rotary wing pumps gear pumps Flexible impeller pumps Hose(peristaltic) pumps Drum pumps quality 5 years Product Warranty ISO 9001 certified CE marked products the EC AtEX directive 94/9/EC EhEDG certified Tel 031 701 5255 Email sales@tapflo.co.za

www.tapflo.co.za

f

O

O

d

&

d

r

I

N

k

WWW.AFRICAOUtlOOkMAg.COM

33

U N I l E v E r

f O O d

S O l U T I O N S

SOUTH AFRICA

SOUTH AFRICA

Ben's Erection & Fabrication is an innovative South African materials handling company whose services include: • Steel erections • Steel fabrication • Steel work maintenance • Machinery maintenance • Steel repairs • Machine repairs • General steel fabrication • Steel constructors • Material handling • Steel - mining industry And many more...

Proud Suppliers of Radio & Television Tracking Services to Unilever Since 2008

For more information visit us at www.afstereo.com or www.gnosko.com

34

WWW.AFRICAOUtlOOkMAg.COM

f

O

O

d

&

d

r

I

N

k

Working together.

Reaching the top.

Shepstone & Wylie is proud to be long-standing business partners with Unilever Food Solutions.

Together, we strive for excellence.

24 Richefond Circle, Ridgeside Office Park, Umhlanga Rocks, 4319. Tel: 031 575 7000

www.wylie.co.za DURBAN • CAPE TOWN • JOHANNESBURG • RICHARDS BAY • PIETERMARITZBURG • LONDON

PIPING, MECHANICAL & STRUCTURAL STEEL CONTRACTORS. INTEGRITY. INGENUITY. QUALITY. We deliver project support through every stage of production. From cost estimation and planning all the way through to project initiation, fabrication, inspection, transportation and installation.Our highly skilled staff of artisans perform their tasks, professionally, punctually and promptly .

www.africanarc.co.za Tel: +27 31 461 4036 | Email: info@africanarc.co.za

WWW.AFRICAOUtlOOkMAg.COM

35

U ni l e v e r

Foo d

The food service market is very promising in this part of the world and we plan to outpace market growth at least at double rate”

S o l utions

“The future is there for us to make the most of it,” Mellis says. “Specifically for Unilever Food Solution in Africa, we will keep developing our South Africa power house, and make a more structured move into Sub-Saharan African markets.”

As the company builds on its growth in existing markets, and approaches new ones, he is confident in Unilever’s unique value proposition. “We have such well known and loved brands, that in combination to our unique market approach, we must leverage into new markets like Angola, Nigeria and Ethiopia, just to name a few. The food service market is very promising in this part of the world and we plan to outpace market growth at least at double rate.”

There are clearly exciting prospects ahead for Unilever Food Services, but more than the wide recognition of their brands, the quality of their products and service, or even the talents of their people, there is one thing that Mellis believes the company keeps in mind above all else.

Nordson Corporation Nordson adhesive application equipment is used in numerous industries to bond products during manufacturing.

Nordson’s OptiBond Solutions Enable packagers to stretch their adhesive up to 100 percent Double the number of packs sealed per kilogram of adhesive Optimise adhesive bead length, placement, diameter and volume Seal packs with significantly less adhesive while preserving bond and package integrity.

The ProBlue Fulfill is an integrated adhesive melter and fill system.

Automatic adhesive replenishment saves operator time, prevent thermal shock and adhesive degradation Uninterrupted operation eliminates missed beads, poor bonding, downtime due to empty tank and reduces contamination.

Tel +27 21 510 1888 Email infosa@nordson.com

www.nordson.com

Lowe and Partners South Africa

L

owe and Partners is a global multi-agency partnership designed to give clients a high concentration of senior, smart and flexible problem solvers to deliver ideas for business.

Utilising the partner network, Lowe and Partners is able to build brands offering services from strategy and media, through to advertising in both above- and below-the-line to point of purchase.

Key clients of the partner group include: Unilever, Merck, Fromageries Bel, SAB, Cape Times, CTFM, Tsogo Sun, Castle Lite, Sasol, Nestlé, Media 24, Hansa Pilsener, SA Homeloans, Avis, Investec and Adcock Ingram.

Tel +27 11 780 6306 Email loweandpartnerssa.com

www.loweandpartnerssa.com

36

www.aFRICAoutlookmag.com

f

O

O

d

&

d

r

I

N

k

The best thing

since sliced bread.

Lowe and Partners SA has always strived for perfection and it’s within Unilever Spreads that we have met a like-minded client. The success of the relationship over the years is easy see. From loved seedman animations, to showing the world its first live heart surgery, both Lowe and Unilever have pushed the boundaries and taken some of SA’s favourite brands – Rama, Flora, Blue Band and Stork – to heights that seemed impossible. This is the kind of fruitful relationship that we at Lowe and Partners SA set out to forge every day. Find out more about Lowe and Partners SA at www.loweandpartnerssa.com or call 011 780 6100.

WWW.AFRICAOUtlOOkMAg.COM

37

U N I l E v E r

f O O d

S O l U T I O N S

QUEST STAFFING SOLUTIONS

W

e are the leading white-collar recruitment company in South Africa and Africa. We have earned this position by setting and consistently achieving high standards in the recruitment, training and management of permanent and contract/ temporary staff for almost 40 years.

Our full circle Staffing Solutions (fcS²™) model incorporates our end-to-end service offering which has been defined and refined over decades and is today, the most comprehensive in the industry, it includes:

Drake & Scull is one of the largest and most sophisticated Facilities Management and Technical Service Providers in Southern Africa. We provide extensive technical, nontechnical and business support services, which enables us to deliver continuous cost benefits while improving the quality of our clients non-core services.

Permanent Staffing, contract/Temporary Staffing, field Marketing, response Handling, Contingent Workforce Management and Outsourced Payroll.

We are a level 2 BBBEE Contributor boasting 70.22% black ownership and 30.21% black female ownership.

Tel +27 21 413 4700

www.quest.co.za

JS ENGINEERING CC

STAFFING LOGISTICS Offer of personalized staffing solutions to various industries A leader in temporary and permanent employment solutions Excess of 10 years payroll management Achievable talent development, with accredited training on offer

GENERAL ENGINEERING ELECTRICAL CONTACTS BRUSH HOLDERS - SLIPRINGS ETC.

quality and expert HR and IR Solutions to all our clients Expert professional individuals with solid experience and exposure to labour supply chain 24 hours operations in selected areas Over 3500 registered staff on record Reputable client retention of over ten years We place over 2000 staff daily into operations.

Tel: +27 11 892 1900 Fax: +27 11 892 1616 54 Tile Road, Boksburg North, 1460

38

WWW.AFRICAOUtlOOkMAg.COM

For service excellence in staffing solutions Tel +27 11 452 9856 Email sales@stafflog.co.za

www.staffinglogistics.co.za

Foo

d

&

D

r

in

k

Think Quest.

You can’t risk anyone but the best handling your recruitment.

With almost 40 years of experience, unparalleled expertise and world class candidate assessment tools, partnering with us will help you break new frontiers.

Look no further than Quest.

To ensure your business reaches new heights, think Quest.

A16301

Permanent Staffing | Flexible Staffing Field Services | Outsourced Payroll Response Handling

FOLLOW US ON:

www.aFRICAoutlookmag.com

39

U n i l e v e r

F o o d

S o l u t i o n s

endeavor engineering & REfrigeration Industrial refrigeration contractors Specialise in Ammonia and Freon refrigeration Total system maintenance and repair Preventative maintenance agreements Fault finding and maintenance works Overhauling of screw / reciprocating compressors Supply and installation of walk-in cold rooms and freezers Supply and installation of water chilling equipment Supply and installation of air conditioning units Supply and installation of ventilation systems 24 /7 Emergency service Maintaining refrigeration standards and safety measures Basic refrigeration training Safety awareness training Tel +27 (0)82 461 1253 Email endeavour@iburst.co.za

Atlas Copcos

The most important aspect of everything that we do is the consumer”

“The most important aspect of everything that we do is the consumer,” he says. “And consumers in our market are very local, despite globalization in many sectors. We at Unilever Food Services spend many, many hours talking to consumers, investigating market trends and learning from observing them. We do all of this in order to pass all this knowledge onto our customers, so that they will always be empowered to develop the very best solutions for making their guests, and our consumers, happy.”

To learn more visit www.ufs.com.

40

www.aFRICAoutlookmag.com

Atlas Copcos long history in the Southern African region makes it a leading player in numerous industries, including FMCG. Our products and services are designed and manufactured to assist customers in achieving maximum productivity.

Our vision is to become and remain “First in Mind—First in Choice ®” with our customers and we believe that our combination of product excellence and dedicated staff assist in achieving our vision. South Africa, Namibia, Zimbabwe, Botswana and Mozambique together make up the Southern African region.

Atlas Copco in Southern Africa employs an extensive sales force for each division whom are dedicated to ensuring the supply of products and services that are best able to meet client requirements.

Atlas Copco is committed to the superior productivity of its customers and sales staff is trained to assist in selecting products and services to achieve this.

Tel +27 11 821 9000 Email atlas.copco@za.atlascopco.com

www.atlascopco.co.za

f

O

O

d

&

d

r

I

N

k

Endeavour Engineering & Refrigeration cc

Industrial Ammonia Freon Refrigeration Office Air-conditioning Mechanical Maintenance Safety Awareness Training .... providing the best possible solutions to meet Client refrigeration needs and problems

Accreditation

SARACCA SOUTH AFRICA REFRIGERATION & AIR CONDITIONING CONTRACTORS ASSOCIATION

MerSETA MANUFACTURING, ENGINEERING & RELATED SERVICES SKILLS EDUCATION & TRAINING AUTHORITY

Tel: +27 (0)11 915-6549 • Fax: +27 (0)11 915-6510 • Mobile: +27 (0)82 461 1252 • eMail: endeavour@iburst.co.za

WWW.AFRICAOUtlOOkMAg.COM

41

S y m r i s e

A winning

taste for

42

life

www.aFRICAoutlookmag.com

F

o

o

d

&

D

r

in

k

Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients, raw materials and functional ingredients and its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements. Africa Outlook speaks to Ibrahim Wagdy about how Symrise has taken a hold in Egypt and beyond and its plans for the African continent.

Writer Hannah Eiseman-Reynard Project manager James Mitchell

ymrise creates flavourings and fragrances for cosmetics, toiletries, sweets, savoury foods and beverages. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and it is among the top four companies in the global flavors and fragrances market.

Of course, the firm is headquartered in Holzminden, Germany, but the group is represented in over 35 countries in Europe, Africa, the Middle East, Asia, the U.S. and Latin America.

“It takes on average 45 aroma chemicals to make a flavour so it takes a long time to train those people to develop a solid knowledge of hundreds of raw materials to be able to create different flavours,” says Symrise Egypt’s Managing Director Ibrahim Wagdy, talking about how Symrise trains technologists to work in flavours and fragrances.

It sounds like a lot of fun – how do we get in?

“We prefer to bring fresh people in than to headhunt,” he replies. “We operate in quite a niche area and we select young, fresh graduates who show scientific curiosity and have a can-do attitude. We need them to be entrepreneurial, pro-active people.

It’s a very competitive industry and our clients compete in a very competitive industry.”

The training programme can see selected candidates travelling and doing training and internships for months at a time. Symrise has operations all over the world, so the opportunities can be extremely wide and varied.

“Symrise was formed ten years ago when Haarmann & Reimer (H&R) and Dragoco merged,” says Mr Wagdy.

“Both companies were already major

www.aFRICAoutlookmag.com

43

S y m r ise

We claim to know the consumers in Africa much better than our competitors. We do lots of market research. This year we’re looking especially into the food and beverage market”

44

www.aFRICAoutlookmag.com

global players in the industry with over 100 years heritage and we’ve had strong growth since year-on-year and that’s reflected on our share value in the stock market. We’re the fourth biggest globally and the second biggest in Europe, the Middle East and Africa.”

The company has an annual total turnover nearing two billion euros and employs over 5,000 people.

Wagdy’s involvement with the firm began in 2010 when Symrise acquired Futura Labs Group, a leading flavours and fragrances manufacturer in Egypt and the United Arab Emirates.

Egypt has a population of 80 million and is a fast-growing market.

“Symrise thought merging the two companies would end up with a faster growing gig: Futura Labs had over 100 people and offered a lot of synergy, as well as a very good technical team,” Wagdy says. “Africa is a focal point because of the potential in it. We had been growing rapidly in Egypt and the region – we have two plants in Egypt and one in Dubai. Integration went very smoothly back in 2010 and since then we’ve been doing double-digit growth in Egypt and in all of Africa.”

Double-digit growth across a whole continent? “We’re growing faster than the industry,” says Wagdy.

Symrise has another base in South Africa and from these two locations the company is plotting to conquer Africa.

So what’s the secret of its success?

“All top industry players have good technology and special molecules but our service is what really distinguishes us,” says Wagdy. “We have on-site support for our clients. There are other players who simply send off-the-shelf samples for the client to evaluate but we visit our clients, tailor make a flavour creation over several visits.

We then fine tune the recipe with the client testing it on his production line and with consumer tests. It’s an integrated process. Our partnership

f e a tu r e

taste for life® Making the tastes people love.

HealtH and pleasure and tHe COuntless OptiOns in between taste for life® is our unique approach to turn taste solutions into success: from holistic health to pure pleasure. When it comes to the perception of food, the boundaries are blurring. “Health” has become mainstream, “pleasure” does not have to mean guiltiness, “light” can taste better than the real thing, indulgent food is exciting. taste for life® has been devised as an answer to these multi-faceted consumer needs. It offers easy-to-handle solutions for the industry, giving the consumers the products they desire and the taste they love. www.symrise.com www.aFRICAoutlookmag.com

45

S y m r ise

46

www.aFRICAoutlookmag.com

f

O

O

d

&

goes beyond even making sure we deliver successful finished product and we often help clients engaging with other complimetary suppliers of packaging or machinery.

“We really look at the whole product concept,” Wagdy stresses.

In addition, Symrise puts plenty of effort into ensuring not just that its flavours and fragrances smell and taste great, but that they are appropriate to their markets.

“We claim to know the consumers in Africa much better than our competitors. We do lots of market research. this year we’re looking especially into the food and beverage market – and researching how the African consumer sees refreshment.” this research serves Symrise well, and it also serves its clients well.

“Clients are happy to see we have research-based products,” Wagdy says, who explains that consumer trends are leading the industry and Symrise is staying ahead of the curve.

d

r

I

N

k

“Consumer health is a focal area – we have created a business unit which caters to consumer health. this focus is what the market wants.”

In addition it is attractive for the consumer, not to mention a great business model to look closely into sustainability.

“All the natural materials that we use have to be used in a responsible and sustainable way… for example, for the vanilla we have a special programme in Madagascar, and we’re the only company in our industry that does this. We have a sustainable growth programme with the local growers and we help support that community.” the company gained DqS certification in november of this year and is a certified green company. It has a campaign currently to help preserve the threatened blue lavender species of Provence, Wagdy says.

Sustainable ingredients aside, what are some of the challenges facing Symrise?

“the main issue is the ever-growing complexity of industry regulations. those standards keep getting more and more complex every year.

Every day we see more and more certifications we have to comply with and our clients often have their own regulatory limitations and specific quality certifications too. Operating across so many countries and regions adds to the complexity.”

So what’s the focus for the future?

“We’ll continue to focus on Africa where we’re putting more and more resources” Wagdy says. “Egypt was first – investing in infrastructure to manufacture flavours, emulsions and seasonings in Egypt and South Africa. Our main focus will be on development and production. We want to remain one of the top two suppliers in Africa.” that seems pretty much guaranteed. to learn more visit www.symrise.com.

WWW.AFRICAOUtlOOkMAg.COM

47

G r E E n B E L T

f E r T i L i S E r S

GBF EYES

African expansion Greenbelt Fertilisers, a 100 percent subsidiary of CHC Commodities, plays a major role in africa’s farming community.

We talk to managing director Robert Coventry.

Writer Hannah Eiseman-Reynard Project manager James Mitchell

48

WWW.aFRICaouTlookMaG.CoM

f

o

o

d

&

reenbelt Fertilisers (GBF) was incorporated in 2004 and founded in Zambia but over the years has expanded into Mozambique, Zimbabwe and Malawi.

The firm has what managing director Robert Coventry describes as “a proud record” in giving farmers “a higher yield with minimal costs” and he says that while it has traditionally focused on the commercial sector, “we are now also targeting smaller farms”.

With a small scale farmer, they’ll typically use one fertiliser for any crop and in any soil. The potential in this sector is high.

“We identified a need for more competition and better quality fertilisers,” says Coventry.

GBF’s formula seems to work and in just nine years it has become the biggest supplier to the commercial sector in Zambia.

To grow that fast it helps to have strong commercial links. Greenbelt Fertilisers are a 100 percent owned subsidiary of CHC Commodities Ltd., a firm which specialises in agricultural products such as maize, wheat, sorghum, malting barley and soya beans. It has links to major farming enterprises, as well as strong relationships in the logistics side of the business – handling and shipping large quantities of food products on behalf of traders and relief agencies.

The positioning is strong, good commercial ties and the product is of a high quality – a strong start for any business, says Coventry.

“Greenbelt Fertilisers was incorporated in 2004 as a fertiliser blending and marketing company, offering agronomic services to farmers to determine accurate crop and soil specific fertiliser requirements for the commercial farming sector in particular,” he explains. “We don’t sell generic fertilisers. Each fertiliser is

d

r

i

n

k

We identified a need for more competition and better quality fertilisers”

made up specifically for each farmer’s soil type, crop and yield expectation on prescription.”

GBF has made a name for itself selling an extremely high quality product, pitched perfectly for every customer’s soil type, ground type, crop and more. How do they go about it? With some of the biggest blending plants in the world. “We can blend 11 different raw materials at a time to create a highly-specialised product – there’s almost no one else that can provide that efficiency,” says Coventry.

With such a specialised and tailormade product it’s hard to get specifics on what GBF can offer, but it has a range of slow-release coatings and ingredients and raw materials from all over the world.

“Primarily, Greenbelt Fertilisers has been focused initially on large commercial farms – defined as farmers who grow 100 hectares or more and large corporate farming operations,” says Coventry.

In the short time it has been in operation the company has managed to grow to an 80 percent share in the Zambian sugar market. This is something Coventry is very proud of. “The larger farms and corporate operations are always on the look out for innovation and we run field days with farmers to educate them about the benefits of our products and what we could do for them,” he says.

But of course there is tremendous opportunity among small scale farmers. They though need a bit of convincing.

“That’s right. It’s the smaller farmers who need more convincing. They need cheaper fertiliser and they stick to what they’re used to so they’re harder to convert. However, the smaller farms are coming around as Greenbelt’s market share – and interest in it – grows rapidly.”

In 2010 GBF purchased a second plant from Ranco in the U.S increasing the blending company to factories in Zambia.

The second factory is operating in the Mkushi farm block, allowing for further expansion in the north of the country.

GBF has also been in Mozambique for two years and it looking to expand further throughout the continent.

It opened a blending plant at the port in Beira in 2011.

“We are targeting Africa,” Coventry says.

But, while making great use of local materials, most ingredients in the fertilisers need to come in from abroad. The port location reduces transport costs on import as well as on export, and opens up further markets.

“There’s a logistical advantage to shipping by sea. We’re working with key ports for cheaper transport costs, and we’re looking to expand down the east coast by sea,” says Coventry. “What have some of the challenges been facing Greenbelt Fertilisers over the past year or so? Primarily it’s just been with capital.

People need to order fertiliser about four months in advance, so we hold a lot of stock and we hold a lot of capital.”

In a bid to cut costs and raise efficiency for clients, GBF has been focusing increasingly on its own environmental impact.

“Some fertilisers can have up to 50 percent filler when they are transported. At Greenbelt Fertilisers we transport them in concentrated forms

www.aFRICAoutlookmag.com

49

G r e e n b e l t

F e r t i l i s e r s

to reduce transport costs and the environmental impact of those costs.”

In addition the company keeps a keen eye on the environmental impact of its products when sprayed on crops.

“We aim to reduce the negative effect of fertiliser on the environment,” says Coventry. “By creating a highly specialised product for Zambian soil, the effects of urea loss from leaching can be reduced dramatically – keeping more nutrients in the soil and protecting the ground water.”

And with operations in so many different countries and regions, how does the company ensure quality delivery across its 1,000 employees?

“We always aim to have as many international training days as possible.

We have health and safety training and much more. But across the whole operation we have one guiding philosophy on high-quality crop nutrition and soil nutrition – that stays the same.”

Having been in Mozambique for two years, what other plans does GFB have? “We want to continue as we are doing: offering a specialised product with excellent service at a good price, and we want to have strong growth and be number one in Central and East Africa,” says Coventry. “We aim to increase market share and expand along East Africa especially. We aim to do this by continuing to create a better service and a better product.”

GBF is already a force to be reckoned with and offers an excellent, highlyspecialised product. This company has staked its claim to being part of the ongoing development of African agriculture and aims to increase production of fertiliser to 150,000 metric tonnes in 2014/15 from 100,000 metric tonnes in the previous season.

“There are huge natural resources in this part of the world and they’re not being utilised,” says Coventry. “We plan to help change that.”

To learn more visit www.greenbelt.co.zm.

50

www.aFRICAoutlookmag.com

Lushbury Fertilizer

L

ushbury Fertilizer Corporation congratulates Greenbelt Fertilisers Ltd on your achievements. We are privileged to have been a part of your growth and success and look forward to continued close cooperation.

Lushbury is a reliable supplier of a full line of premium macro- and micro- nutrient fertilizers and agricultural chemicals. Our business is built around Africa and its people. Our comprehensive portfolio of products, deep expertise in logistics, and dedication of our people sets Lushbury apart from competition.

Nitrogen: G-AmSul, Urea, CAN 27% Phosphates: DAP, MAP, TSP, SSP Potash: MOP, SOP, KNO3 NPK: Any customized blend Micros: Zinc, Kieserite, Sulphur, Customized Formulas Lushbury’s mission is to be our customers’ preferred supplier of all plant nutrients and agricultural chemicals. Through close cooperation and innovative thinking we are setting the standard for quality, reliability, and customer support.

Lushbury prides itself on a highest degree of focus and commitment to our customers. We are a proud member of fertilizer industry’s leading organizations: International Fertilizer Association and The Fertilizer Institute.

We invite you to meet us at any of the upcoming events and conferences.

We grow with our customers and suppliers and drive value for our investors. Grow with us!

Tel +1-516-308-2787 Email export@lushburyfertilizer.com

www.lushburyfertilizer.com

f e a tu r e

www.aFRICAoutlookmag.com

51

C o nc o r d

C ranes

Reaching new

In 2012 Investec facilitated a transaction whereby Concord Cranes Ltd became the holding company of Anglo-V3 Crane Hire and Elcon Crane Hire.

Writer Ian Armitage Project manager Stuart Shirra

52

www.aFRICAoutlookmag.com

heights

C

o

n

s

t

r

uccessful couples don’t just make promises to each other; they commit. And commit to each other is exactly what Elcon Crane Hire and Anglo-V3 have done.

In 2012 Investec facilitated a transaction whereby Concord Cranes Ltd became the holding company of both entities.

It was a watershed moment.

“That’s right it was a big development,” says David Wilkinson, Elcon’s founder. “It all started really back in 2011 when we released an equity stake in the Elcon Group to Investec and this was followed in December 2012 with a merger between Elcon Crane Hire and Anglo-V3. We weren’t looking for a partner but negotiations took place whereby Investec, who had already decided to invest in Anglo-V3, wanted us to join and become part of a much larger network and of course we’ve always looked for new avenues to develop our business interest over a larger African footprint. We soon realised the future of the crane industry might be to have a bigger footprint in South Africa. It is still our intention today.”

Both Elcon and Anglo-V3 are longstanding participants in the South African crane hire industry and both have strong family histories.

They continue to trade under their individual branding and livery and are managed by the same management teams – Herman van Staden leading Anglo-V3 and David heading up operations at Elcon.

“Concord Cranes was previously called V3 Crane Hire which was the original holding company of the Anglo-V3 group, which included Phakamisa Crane Hire the BBBEE Company associated with Anglo-V3,” says Mr van Staden. “With the addition of Elcon Crane Hire to the group the decision was made to

uc

t

i

o

n

change the holding company name to a new ‘neutral’ name, Concord Cranes. The addition of Elcon has added an immediate presence and exposure for the group to the Durban and surroundings markets where Anglo-V3 previously has never been actively involved.”

It is expected that within the next 12 months that Mr Wilkinson’s son, Marcus, will assume CEO responsibilities for the Elcon trading leg. Marcus has co-managed the Elcon Group over the past seven years as commercial director and is presently working very closely with Mr van Staden and Anglo-V3 operations director Francois Smith on new ventures for the group.

“We’re excited by the future and I’m confident I’m leaving the business in good hands,” Wilkinson says. “This combining of resources into the market has many positive advantages for all our customers. This new group now offers our clients the strength and variety of 150 mobile cranes of different sizes and lifting capabilities and wider geographical coverage. This enhanced capacity will certainly be of interest to many industries around the country where some cranes are in short supply.

To give you an example, access to the bigger fleet has assisted us in securing the Engen Refinery maintenance contract in Durban, serviced through Elcon, and Sasol in Secunda and PetroSA in Mossel Bay through Anglo-V3.”

The combination means Concord boasts a strong core and provides a platform for expansion into areas not yet covered geographically, Mr Wilkinson says.

“And we, of course, have the skills and experience in this industry, which isn’t an easy industry to get into,” he adds. “If you wanted to start a crane company off in South Africa you would need a large capital investment and a spread of six or seven cranes across the sizes because if you don’t have a basket of sizes to offer your clients you’re soon going to run out of capacity and then the client has got to go to an alternative supplier.”

Anglo-V3 Crane Hire has ten branches spread across Gauteng, the Free State, Western Cape, Eastern Cape and KZN, with its headquarters in Midrand.

“Not a lot has changed since each entity is effectively trading separately as before,” Mr van Staden says. “The added back-up via fleet size and inhouse expertise including experience

www.aFRICAoutlookmag.com

53

C onco r d

C r a nes

has benefitted both companies and has given the group more confidence in tackling bigger projects going forward. Financial stability, growth potential via a bigger client base and added fleet back-up are just a few of the benefits of the merger and we’ll be nationally more competitive in areas where we were not previously active.”

Elcon has a branch in Richards Bay and a head office in the Port of Durban.

“We service everywhere from Maputo down to East London,” Wilkinson explains. “Our clients already see the benefits of the bigger footprint.”

Concord Cranes boasts a fleet of over 150 mobile cranes throughout the range, from the smallest 7t capacity up to the 550t all terrain, and has worked itself into one of the “top three operators in the country,” he says.

Elcon Crane Hire was born from humble beginning in 1986 when Mr Wilkinson purchased the construction wing of Elgin Engineering.

“I was a consultant in the sugar industry in the early years for CG Smith, being involved in the refurbishment and building of all sugar mills north and south of Durban,” he says, recalling Elcon’s heritage. “One of the principle contractors on these sugar mills was a construction and manufacturing company called Elgin Engineering and I eventually joined Elgin to carry on a contract for them and re-manage their exposure into the sugar industry.

During the course of this two-year contract I carried out the duties I was requested to do by the management and then I saw an opportunity to remove their construction division from the Elgin Group and I pursued and concluded a management buyout.

That’s where Elcon was born. From there, and with many years of hard work, I’ve progressively built up the company, modernising aggressively up to and including 2012 when we became part of Concord.”

54

www.aFRICAoutlookmag.com

C

onst

r

uction

9270

ELCON CRANES REACHES NEW HEIGHTS. As their banking partner, we congratulate Elcon Cranes on their on-going success, from humble beginnings to the cutting-edge services they provide today.

Nedbank can also be of service to you, your business, your staff and your household through our decentralised service model, which empowers our regions to offer customised end-to-end business solutions and quick turnaround times.

For more information please contact business manager Daryl Norris at daryln@nedbank.co.za.

Nedbank Business Banking – partnering for growth for a greater South Africa. nedbank.co.za Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16)

Going forward Mr Wilkinson is sure that the combined group will remain at the “cutting edge” of new crane technology and continue its commitment to customer service through strong business values and its core business principal of understanding the customers’ needs “holistically”.

“That’s absolutely vital and over the years we’ve invested in such technology,” he says. “For instance, we have cranes with bluetooth capabilities which enable the operator to utilise a portable terminal and walk around the machine during set up to ensure 100 percent safety.”

Over the past year Elcon has introduced four new machines to its fleet – three Liebherr all terrain cranes and a new Zoomlion 35t rough terrain machine. Anglo-V3 has purchased 12 machines, spread across various brands and applications.

Both companies are managed by entrepreneurial directors and our aim is to generically grow the group to one of the largest and best crane hire companies in Southern Africa”

The purchases were primarily driven by “clients increased demand for this size and type of machine,” Wilkinson says.

An ultra marathon runner and keen athlete, we believe his retirement certainly won’t hold him back.

Mr Wilkinson can be proud of what he has built and we’re sure he’ll continue to play an active role in developing Concord.

“We’re excited by the future,” van Staden concludes. “Both companies are managed by entrepreneurial directors and our aim is to generically grow the group to one of the largest and best crane hire companies in Southern Africa, and in so doing ensure a strong financial stability to the benefit of its shareholders and loyal employees.”

To learn more visit www.elconcranes.co.za and www.anglov3.co.za.

www.aFRICAoutlookmag.com

55

M a n t r a c

N i g e r i a

Powerin Mantrac Nigeria distributes and supports the full range of Caterpillar construction machines, power systems and material handling equipment. We talk to strategic planning and marketing manager James Agama.

Writer Chris Farnell Project manager James Mitchell

56

www.aFRICAoutlookmag.com

C

o

n

s

t

r

uc

t

i

o

n

ng up

he Mantrac Group is the sole dealer of Caterpillar products across the African continent and Mantrac Nigeria is their Nigerian division. This unique market position has meant that for over 60 years the company has been closely involved with the vast majority of major construction jobs across Nigeria.

Providing sales and rentals of Caterpillar products, as well as maintenance, servicing and onsite training for the same, Mantrac Nigeria has fortified a dominant position in the construction and earthmoving markets, and it is proving increasingly essential for the power generation needs of the oil and gas sector.

It’s hardly a surprise that the last decade has seen a 300 percent rate of growth as the company has expanded to ten separate branches around the country.

And Mantrac Nigeria is needed now more than ever, as Nigeria is in need of a huge overall to its infrastructure.

“There is a heavy, heavy infrastructure deficit in our country with regards to power and construction,” says Mantrac Nigeria’s strategic planning and marketing manager James Agama.

Poor infrastructure naturally makes business more difficult.

“Like most multinationals in our country, we find the infrastructure can be very challenging,” Agama admits. “The operating cost is high. Also there are limits on the resources which are available.”

Mantrac Nigeria has placed itself as a crucial resource in correcting that deficit across the country.

“We are partners in developing the infrastructure of this country and we’re looking at new ways to make things better,” Agama tells us.

“We’re doing all that we can to help

www.aFRICAoutlookmag.com

57

M a N T r a C

N I G E r I a

BALTIC AIR & MARITIME CARGO SERVICES LTD BAltIC AIR & MARItIME CARgO SERVICES ltD was incorporated in Nigeria as a private limited liability Company on the 17th of September, 1978.

We have been a key player in the Maritime and Air Industry. With more than two decades in operation, BAltIC AIR AND MARItIME CARgO SERVICES ltD is one of the largest and most successful transport and logistics providers in Nigeria and beyond.

As professionals, we have been involved in the enhancement, updating, improvement of clearing, haulage and storage systems, and we are also a reliable partner for industrial development and growth, as recognized by the Nigerian Customs Services for having the best clearing services in Air & Maritime cargo handling activities.

www.balticairmaritime.net the country. Presently, for example, we’ve partnered with Setraco in one of the major infrastructure projects in the Niger Delta area.

We’re providing the equipment that makes it possible for them to work there. that’s a major project in this country so we’re showing strength in that partnership.” this isn’t a fly by night operation however. Mantrac is committed to a long term investment in Nigeria’s national infrastructure.

“We’re here for the long haul, we’re committed to Nigeria, and we know that we are willing to help and be involved as much as possible to get the country where it wants to be,” Agama says proudly. “We are the largest company in this field.

We have become the benchmark for quality here.” looking forward the company is aiming to drive its coverage across the country, while providing the

58

WWW.AFRICAOUtlOOkMAg.COM

C

onst

r

uction

Efficient, Reliable, Fulfilling and Balanced Cargo Movement Services Abuja Airport: Nnamdi Azikiwe Int'l Airport Cargo Shed, Abuja, Nigeria Tel: +2348160703946

Lagos State: 5 Jogunosimi Street, Off Obafemi Awolowo Way, Ikeja, Lagos, Nigeria Tel: +2347098141839, +2347098123876, +23417927004

Lagos Bonded Terminal Warehouse: Mile 2 terminal Mile 2, Amuwo Odofin, Lagos, Nigeria.

Tel: +2347068442329.

Kano State: SAHCOL Premises Malam Aminu Kano Int'l Airport Kano State, Nigeria Tel: +2348022907617

Rivers State: Port Harcourt Int'l Airport Port Harcourt, Rivers State, Nigeria.

Tel: +2348122200012

Dubai office: SAIF Zone, Sharjah UAE

Tel: 09 -2900626 | www.balticairmaritime.net | Email: info@balticairmaritime.net 11 Jere Street, Area 3, Abuja, F.C.T, Nigeria

We’re doing all that we can to help the country.

Presently, for example, we’ve partnered with Setraco in one of the major infrastructure projects in the Niger Delta area”

www.aFRICAoutlookmag.com

59

M a N T r a C

N I G E r I a

We’re here for the long haul, we’re committed to Nigeria, and we know that we are willing to help and be involved as much as possible to get the country where it wants to be”

60

WWW.AFRICAOUtlOOkMAg.COM

best value for money it can from its brands, fuelled by well built one-onone relationships with customers.

But that’s just the beginning. talking to Agama it is abundantly clear that he is very excited for the future. the company has been building an increasingly significant presence in the power generation sector, which he believes holds great future potential, and the company’s consistent support of new infrastructure is going to pay off as the demand for more industrial equipment continues to grow.

However none of that is worth anything if the company is not able to find and retain the skilled people who make that business happen.

Perhaps the single key facet of the business is the company’s people management. While being the sole provider of Caterpillar products to the region gives Mantrac a market advantage, it’s one that’s worth nothing without the company’s extremely knowledgeable staff. that staff is able to offer exemplary service, with every member of the team possessing an in depth knowledge of the Caterpillar products they sell. this is thanks to a highly selective recruitment process and the company’s ability to take advantage of comprehensive product training.

“We use a mix of direct recruitment and agencies, depending on what sort of position we are looking to fill. As well as our superb recruitment processes, we are working to bring in new roles such as my own strategy planning position. Meanwhile we are also acquiring new platforms that make it easier for our staff and customers to interact, such as the newly launched SalesForce CRM system we recently installed which will make those relationships stronger,” Agama tells us.

C

onst

r

At the forefront of its strategy is a world class staff development programme. “We pride ourselves on providing a training programme for a lot of people. The Mantrac group runs training across the many different countries in which we operate,” Agama says. “Our courses are tailored towards improving the person as well as what they bring to the business. We also work hard to ensure that we are offering the best in terms of benefit and welfare packages, so that after we’ve invested in our staff they want to stay with the business.”

However, as well as benefiting from global training resources, Mantrac also places a great deal of value in local knowledge. Agama points out, “We have a global practice but we also rely heavily on the local

uction

knowledge. We hire staff that have lived in this country and understand the local environment.”

That understanding is becoming especially important as the markets in Nigeria are in a constant state of change, especially with other international brands attempting to get a foothold on the market.

“The competitive landscape has changed over the years,” Agama admits. “There are new brands constantly popping up. In particular there are a lot of Chinese brands in Nigeria now. Possibly the biggest challenge we’ve faced are that the market is changing on a regular basis. To combat these new realities we are looking at how we define our processes, how we meet the customer and how we can provide

new products that allow us to fight on quality not affordability.”

It’s a strategy that’s paying off.

“The last 12 months have been better than the previous year, there’s interest coming in on all fronts as a result of the investment we’ve put into the business finally beginning to see results in terms of new products and processes,” Agama says. “We’ve been here for over 60 years, and in most developing countries the infrastructure still needs a lot of work.

We’re hoping as a business to help our country reach the infrastructure levels every Nigerian desires. That is why in the last few years we’ve invested so heavily in the business.”

To learn more visit www.mantracnigeria.com.

www.aFRICAoutlookmag.com

61

M oi

T e a c h ing

a n d

Re f e r r a l

Hos p it a l

Caring for Kenya

62

www.aFRICAoutlookmag.com

He

a

l

t

h

c

a

r

e

Africa Outlook speaks to Dr John Kibosia of Moi Teaching and Referral Hospital about what it’s like operating Kenya’s second largest referral hospital.

Writer Hannah Eiseman-Reynard Project manager Eddie Clinton

he Moi Teaching and Referral Hospital located in Eldoret, Kenya - home to Kenya’s fourth international airport - has nearly 100 years of history having been founded in 1917 as the Native Cottage hospital with a bed capacity of 60. Today, it has a bed capacity of 550 serving the larger Western and Nyanza provinces in Kenya and its surrounding areas of Kapenguria, Kapsowar, Kitale, Nandi, Kapsabet and Tambach, as well as offering medical education through its association with Moi University, a major development.

The hospital has certainly moved with the times – and we’re happy to bring you its story because, as it has evolved, it has helped to transform healthcare in Kenya.

Let’s go back to 1990 when its association with Moi University began.

“Moi has been at the forefront of training. The facility was upgraded to a hospital to be a training facility for the medical students,” explains Dr John Kibosia of Moi Teaching and Referral Hospital. “The link has been good because so far whenever Moi Hospital University is mentioned – it is an honour. It is the university which has made the hospital.”

The upgrade did not come without its own challenges and, as the centre upgraded and grew, the patient numbers grew even more rapidly.

“Previously referral cases had to be taken to Kenyatta national Hospital but when Moi became a referral hospital there was a crunch upon it being declared as a referral hospital,” says Dr Kibosia.

As the second-largest referral hospital in Kenya, Moi’s catchment area became a staggering 16.24 million people. Kenya’s total population is 38.2 million.

It also has international patients.

“People come from up to Sudan and

www.aFRICAoutlookmag.com

63

M oi

T e a c h ing

a n d

Re f e r r a l

Uganda, some come from as far as Tanzania – the hospital caters for a much bigger population,” says Dr Kibosia The hospital has 3,200 staff, 800 beds and, of course, a catchment area of 16.24 million. With these numbers its little surprise that keeping up with the needs of the patients is a challenge the hospital cannot always meet. In instances of political unrest – such as the election violence which erupted in 2002 – Moi has struggled to deliver care to all the people who need it.

One problem is the resources which the hospital has. Though the hospital was initially working very well, the transition period of 2002 brought problems.

“The Government decided to develop cold feet on this hospital.

There were deals that were not forthcoming. The hospital could have been rendered useless – service delivery went down and most referrals

Hos p it a l

Megascope Healthcare

M People come from up to Sudan and Uganda, some come from as far as Tanzania – the hospital caters for a much bigger population”

egascope Healthcare (K) Ltd provides services of distribution and supplies of medical equipment and hospital disposables. We have gained unmatched reputation for our knowledge in vital hospital equipment used in critical care, radiology, dentistry and laboratory.

Over the years we have been able to expand our product portfolio to include forensic equipment, hospital furniture and sterilization equipment. We have partnered with renowned manufacturers in Western Europe, Asia, America, Southern part of Africa and Holland. Megascope works on a planned preventive maintenance measure to ensure continuous quality service.

Tel + 0722 299097 Email info@megascopekenya.com

www.megascopekenya.com

©Moi Teaching and Referral Hospital/Facebook

64

www.aFRICAoutlookmag.com

He

a

l

t

h

c

a

r

e

www.aFRICAoutlookmag.com

65

M oi

T e a c h ing

a n d

were going to Kenyatta hospital,” says Dr Kibosia. “Moi hospital had been rendered insignificant and most of the talent was lost, but that is turning around currently.”

Luckily, with a fresh intake of trainee doctors, the hospital is never without human resources, and the experience on the staff is building back up.

But the challenges don’t end there.

Indeed, though it is better equipped than many hospitals in the region, Moi struggles with the quality of many of its machines.

“The CT motion analysis and dialysis machines are not state-of-the-art.

Most machines are second hand. They are what people have been given,” says Dr Kibosia.

And it gets worse. In a population where the average wage is below one U.S. dollar a day, a CT scan costs around 12,000 Kenyan shillings (while dialysis costs 20,000 shillings per visit), so accessing the medicine at all is something only a fraction of the population can afford.

With cancer care the picture is even bleaker.

“There is a very big challenge with cancer – those who can afford care are very, very rich. Cancer is killing, killing, killing people. In this level of poverty people die,” says Dr Kibosia.

He tells us the hospital needs a specialist cancer care ward.

Currently, cancer patients who can afford to travel go further afield for treatment, while those who can’t are treated in among the other patients with no specialist care available.

“A cancer unit would be a very great blessing,” Dr Kibosia tells us. Currently situation is often little more than palliative care. “It’s said it’s a relief when you get HIV/AIDS rather than dying of cancer,” he says.

Another challenge the hospital has faced is shortages of some drugs and medicines.

66

Re f e r r a l

Hos p it a l

“Most of the drugs patients get from the hospital pharmacy, but the hospital pharmacy is not that well stocked with the rarer drugs,” Dr Kibosia says.

The situation is not uniform across all diseases. Tuberculosis drugs, for instance, are readily available thanks to a combination of government initiatives and U.S. aid.

Anti-retroviral drugs for HIV/AIDS too are made more available by NGOs, however, the steady supply of medicine to the hospital is an ongoing challenge, and one of the main reasons for that is corruption.

“Corruption is like a cancer in our society. Some doctors get drugs and sell them to their own pharmacies.

Corruption is quite rampant. I’m not afraid to say that,” says Dr Kibosia.

In some instances drugs which are ordered are not delivered, in other cases they go missing after they have arrived at the hospital.

www.aFRICAoutlookmag.com

Disposable Surgicals And Recoveries Ltd DSR believes that there are no barriers it cannot overcome across nations nor gender We aim to bring to our country the best quality medical products available across the world Cheap can be very expensive We challenge competition by educating the end users on our products thus creating a powerful relationship between supplier and end user Our clientele are the most important ingredients in our relationship We consistently strive to exceed our clients’ expectation in the timely provision of goods We strive to be the best amongst our competition We challenge our principals to be the best service providers.

Tel +254 020 521 3 647 / +254 020 801 3 652

He

a

l

t

h

c

a

r

e

Committing to creating people oriented to quality sutures and disposable surgical dressings Managing Director Frader Opembe Disposable Surgicals And Recoveries Ltd P.O. Box 10326 - 00100 NAIROBI, KENYA Tel: +254 020 521 3 647; +254 020 801 3 652

Cell: +254 0722 649 145

ŠMoi Teaching and Referral Hospital/Facebook

www.aFRICAoutlookmag.com

67

M oi

T e a c h ing

a n d

Re f e r r a l

Hos p it a l

“Doctors receive drugs from a medical assignment and give them to specific pharmacies. The corruption is a social scourge. We need a hospital to be a one-stop service with all the medicines.”

One reason corruption is so rife is the poverty and it can affect more than just the medical supplies.

“The professional misconduct comes about because of corruption.

We need an independent body to regulate care and drugs,” says Dr Kibosia. “In Kenya you can get people working as doctors who were not trained as doctors.”

While a teaching hospital is unlikely to have that particular problem, Moi hospital does have difficulty holding on to trained doctors once they graduate.

“They could be accommodated at the hospital but they seek jobs elsewhere. They say our government is not paying enough.”

Some staff wages are assigned by the Government and some are assigned by the Centre for Disease Control (CDC), but this piecemeal approach does not always work efficiently and Dr Kibosia fully supports increased wages.

“At times people prefer going to private hospitals because their service delivery is high. There is less corruption and drugs don’t go missing.”

Despite the many challenges Moi Teaching and Referral Hospital faces, Dr Kibosia is confident he knows what some of the solutions to this situation should be.

“Corruption has eaten each and every institution. That’s why each and every organisation needs an independent body.”

He wants an independent medical professional not related to the government overseeing the organisation to maintain professional standards.

In addition, he recommends the setting up of smaller branch

68

www.aFRICAoutlookmag.com

He

a

l

t

h

c

a

hospitals in Kisumu and Nyanza province “so that the sub-branches can get direct help. It was just my humble submission that those can be set up to even the service delivery.”

Other investments which would help patient care immeasurably – as well as improvements in hospital equipment – are the specialised cancer care unit as well as a more specialised children’s hospital.

Currently Moi Teaching and Referrals Hospital offers paediatrics, but would benefit from more specialised HIV/ AIDS paediatrics.

Despite all that, Moi has achieved many great things and has always been at the forefront of training and has the best tropical medicine department in Kisumu.

In addition to plans for better patient care, Moi Teaching and Referrals Hospital works to give more back to the community it is based in.

One example Dr Kibosia gives us is the Boresha Educational Empowerment group – boresha means ‘betterment’ in Swahili – and the Education Volunteers project which empowers teenage girls.

The teenage pregnancy rate is very high, and with so much poverty in the population that young women often have to choose between spending money on sanitary towels or 2kg of maize to feed them and their families – many girls regularly miss out on schooling as soon as they hit puberty.

The Education Volunteers project aims to combat this by empowering and encouraging girls in their education, as well as providing practical support such as antiretroviral drugs for HIV positive students.

“It is a brilliant scheme,” Dr Kibosia says.

We spoke to the doctor on a Monday – he told us the Friday before he’d been at a prayer day with the students ahead of their national exams.

Many of the healthcare workers at the hospital come from the local community and Moi Hospital is helping to both empower its local community as well as train up a new generation of staff.

Moi Teaching and University Hospital is facing some huge challenges but Dr Kibosia is facing them head-on and remains resolute and upbeat.

From 7-12 December the Boresha Educational Empowerment group will be running an educational festival at Moi Teaching and Referral Hospital, with inspirational and expert speakers.

Those interested in sponsoring or collaborating with the festival should get in touch.

r

e

Supplier of scientific laboratory equipment and chemicals Agricultural | Industrial Chemicals | Analytical Chemicals Culture Medias | Clinical Chemistry | Safety Medical/Lab equipments | Lab glass ware | Filter Papers

Tel: +254-20-2632860 Mobile: +254-723913480 / +254-754268466

www.igls.co.ke

To learn more visit www.mtrh.or.ke, email boreshaeduc@yahoo.com or call +254725200054.

www.aFRICAoutlookmag.com

69

f O r E W O r d

Q&a: kenya’s insurance sector is growing. Industry veteran tom gichuhi, the CEO of the Association of kenya Insurers, gives us his insight.

Writer Ian Armitage Project manager Sheridan Halls

n August the Association of kenya Insurers (AkI) announced that members’ profits grew 53 percent last year, helped by increased investment income from the domestic stock market that recovered from a slump in 2011. Indeed, kenya’s 46 insurers posted a pre-tax profit of Sh14.8 billion last year.

Following the announcement, we caught up with AkI’s CEO tom gichuhi and asked him a few questions about kenya’s insurance industry. Here’s what he had to say...

70

Tell me more about Kenya’s insurance market. What are the main challenges facing the industry? the challenges facing the kenyan insurance market include, but aren’t limited to, very stiff competition due to the presence of a large number of underwriters (most of whom are almost of the same size in terms of market share) coupled with little product differentiation. The above factors have led to very stiff competition which has led to unsustainable price cutting, low levels of awareness of the importance of insurance among potential consumers of insurance, low disposable

WWW.AFRICAOUtlOOkMAg.COM

incomes and therefore inability to purchase insurance, which in most cases is not regarded as a necessity, and fraud which ends up making insurance claims sometimes unmanageable. this has the potential of making insurance expensive as underwriters try to balance their books.

The market is characterised by low penetration. How as an industry is that being tackled? the industry is tackling low penetration through increased consumer education mainly conducted by AkI and the Insurance Regulatory Authority

Fin

a

(IRA), market penetration through introduction of new products that resonate well with the consuming public, simplification of insurance contracts to make them consumer friendly, diversification of distribution channels e.g., bancassurance, and market diversification, e.g. micro insurance for the low income earners and the informal sector and introduction of agriculture insurance.

nce

efforts to encourage those who have, to save more preferably through insurance.

Tax incentives would certainly encourage more savings through purchase of long term insurance and pension products.

skills upgrade for pension and marine underwriters. Individual insurance companies are also aggressively involved in training their personnel in technical, managerial and marketing skills.

Tell me more about the legislative environment. Is it condusive for insurers to do business?

The current legislative framework is not robust enough to encourage accelerated growth of insurance.

We certainly need to do more. We have to come up with legislation that encourages investors to invest more in insurance, one that encourages the consumers to buy more insurance through tax incentives and other benefits, and one that promotes good corporate governance so that the image of the industry is improved so as to attract more customers. There are some proposed changes in the Finance Bill 2013. One of the changes requires that persons registered under the insurance Act charge and remit a ten percent excise duty to the Kenya Revenue Authority on all fees and charges levied on services offered. It is a very ambiguous piece of legislation and we are already lobbying against it.

The other new proposed amendment requires insurance companies to pay insurance claims within 90 days of reporting of such claims. We are also lobbying to have that proposal changed by way of wording so as to require that claims are paid with 90 days of submission of the requisite documents.

Tell me more about the market itself. Kenya’s insurance industry is fragmented. Would you encourage some consolidation?

Yes the Industry is probably fragmented. We are almost at 50 in number. Consolidation would help a lot particularly in creating huge corporate organisations that would not only dictate the market trends and control such vices as price cutting but which will also enjoy economies of scale, thus bring down the cost of insurance which would ultimately encourage more people to buy insurance hence improve penetration. Consolidation has not really taken root. But there are all the indicators of mergers and buyouts. We may have seen one or two but certainly more are expected to come through. It is a process that is going to take some time but we are cetainly headed there.

Most uptake in insurance is in motor insurance, fire industrial and personal injury. Why is that?

That’s right; most uptake in insurance is in motor, fire industrial and medical.

There are good reasons for this. First of all, motor third party is compulsory.

This ensures that all motor vehicles must carry the minimum motor third party insurance cover. Secondly, purchase of motor vehicles in most instances is financed by banks and employers hence the requirement for a comprehensive insurance cover to protect the interest of the financier. When it comes to fire industrial insurance, it is purchased by corporate organisations as a risk management tool. They are in business and therefore the need to protect their assets. They are also a lot more aware of the importance of insurance. A lot of them are also financed and therefore insurance is a source of security. Medical insurance, meanwhile, has in the last five years or so become the fastest growing segment. This is purely informed by the ever escalating cost of healthcare in this country. Ultimately however, only about seven percent of Kenyans have one form The industry is also facing a mounting skills shortage. How can that be of insurance or another. tackled?

Is the lack of savings culture in Kenya a Shortage of skills is only in certain specialised areas such as actuarial, concern for insurers? pension, marine and aviation It is, but that said, we also have to underwriting, agriculture insurance appreciate that one can only save underwriting and claims processing, and available disposable income. Around oil and gas insurances. IRA is already half of Kenyans live below the poverty on a programme to train actuaries line and you cannot save what you do and AKI has been actively engaged in not have. However there are concerted

Do you see a bright future for the insurance market in Kenya?

There is a very bright future not only for the insurance market in Kenya but also for the entire financial services sector. There is the expanded market provided by the larger East African Community with its 140 million inhabitants, discovery of huge deposits of oil and gas, a mining industry just about to start thriving, huge infrastructural projects in the areas of road, railway, sea and airports, electricity generation projects and a rapidly growing middle class which is the main driver of consumption of products and services, insurance included. The list is endless!

To learn more about AKI and Kenya’s insurance industry visit www.akinsure.com.

www.aFRICAoutlookmag.com

71

G a

I N S U r a N C E

for

gA Insurance is a company poised for growth says CEO Vijay Srivastava.

Writer Ian Armitage Project manager Sheridan Halls

72

WWW.AFRICAOUtlOOkMAg.COM

f

I

N

a

N

C

E

he kenyan insurance industry recorded 15 percent growth in the first half of this year, with premiums growing to $744.7 million from $647 million in the same period last year.

But, despite the growth, with an increasing number of people buying insurance, penetration is low and the result is that competition in the industry is fierce as licensed companies compete for a limited market. kenyans’ uptake of insurance cover, both at corporate and personal level, remains predominantly in the motor, fire industrial and personal accident (mainly group medical cover) classes.

“The main issue affecting us and the industry in general is the unhealthy competition and lack of self-discipline among players,” says Vijay Srivastava, cEO & Principal Officer, at GA Insurance. “the companies are too many for a relatively smaller market. the penetration and awareness of insurance is poor. the imbalance between a regulated and free market is a challenge. the crime related claims are always on rise besides the motor and Employers liability legal claims and the industry is struggling to reduce the fraudulent claims especially in the motor classes.” gA Insurance is one of the oldest insurance companies operating in kenya, underwriting all classes of general insurance, including medical and travel.

Formerly known as general Accident Insurance Company of kenya limited, having its parentage from general Accident Insurance Uk, it was incorporated as a kenyan insurance company in 1979.

In 2006, the company was acquired by the present owners, who also own the renowned I&M Bank group in kenya with interests in banking, insurance, beverage bottling and real estate. With new

ownership and new management, the company’s profile changed and it has been growing consistently since 2007, maintaining a growth of over 25 percent each year. this resulted into repositioning of the company in the kenya market and prompted it to rebrand in 2009.

“Presently gA is the most promising and one of the leading companies in the market. It has grown considerably since 2006,” says Mr Srivastava. “gA’s key strength is its people, the work culture and quick adaptability for achieving excellence. We are selling solutions to customer needs and creating viable options in the market. the reputation of the shareholders of the company and synergy with I&M Bank group give us a lot of credibility and good standing. We work with the dual responsibility of living up to gA and group’s brand.” the gA brand is recognised as one of kenya’s most reputable insurers.

Srivastava says the people in the company have been “literally living the corporate values to make it a sustainable brand” and that gA has been “focusing growth with profitability towards long time sustainability”. “this led the company to develop one of the strongest financials in the market in terms of top and bottom line, assets, net equity, large investments and high solvency margin,” he says.

Over the last year gA has recorded premium income growth of over 30 percent.

Profits are also up. And new ventures have been launched. “this year we opened the gA life Assurance Company having 100 percent ownership of gA Insurance,” says Srivastava. “gA life got licensed in June this year and has made a very promising beginning especially in the fund management, pensions and group life.”

WWW.AFRICAOUtlOOkMAg.COM

73

G A

I nsu r a nce

Of course, with things growing quickly, there are challenges.

“Handling the fast paced growth in business and maintaining good customer service and delivery are certainly two of them. We had the potential and ambition to make a difference in the market but the comfort is that we have much better services as a bigger company than what we used to have five years back.

The pain of implementation of the core software system is now resulting in good services to clients.”

There is plenty of room for expansion, if you understand the needs and challenges of Kenyans, Srivastava says.

“Kenya’s insurance market has enjoyed average growth rates of between 18 and 20 percent and insurance supervision is changing from compliance based to risk based.

The regulator is very active and has brought a number of guidelines for better governance of the industry.

This has given us clearer road map in managing the company.”

Kenya also has a growing number of tech savvy young professionals and this too is impacting the business and leading to new channels of distribution.

“The new generation is more technology savvy with smartphones, internet and social media,” says Srivastava. “New distribution channels are coming up like Bancassurance, other agents like in travel/tourism with large number of loyal retail and corporate clientele, and increased use of credit/ debit and other smart cards. Increased risk awareness about terrorism and political violence and new finds in oil and energy are interesting also and will require specialised cover, capacity and an expert technical knowledge of the special insurance covers. We at GA have geared up to these new trends and are adaptable to the fast growing needs of the customers. We are selling

74

www.aFRICAoutlookmag.com

f

in

a

nce

Service never sleeps…

At Willis Re, we understand the challenges that keep you up at night.

Our passion makes for constant Reinventing, continuously Rethinking and always providing Resilient Reinsurance solutions to achieve peace of mind.

Willis Re (Pty) Ltd is an Authorised Financial Service Provider, Licence No. 24845.

1st Floor, Building 3, Inanda Greens Office Park, 54 Wierda Road West ,Wierda Valley, Sandton Tel: +27 11 341 9600

12323_ADVERT_RISKSA_AW.indd 1

travel insurance online and are in the process of making our website more interactive and of practical use to the customer for their convenience. We are already part of a bank and are developing the bancassurance. We now have a Life company in the group and this will facilitate us to package many new innovative products along with the general and medical insurance covers distributed through bancassurance. We are aiming into building our capacity and knowledge about the oil exploration and energy sector. We also have an integrated software system for both general and medical insurance. This enables us to handle the large volumes with controls and efficiency ensuring better customer services.”

GA dreams big. And it has paid off.

From a moderate $6.5 million GWP in 2006 it will close the year 2013 at about $36 million GWP. “We recently finished our strategy meeting and have put in place a long

27/08/2013 16:42:12

GA Insurance is one of the oldest insurance companies operating in Kenya”

and short term plan,” says Srivastava.

“We are still looking for more high growth in business for the next three years in order to further improve our market share.

“We have a very high solvency margin, good growth and liquidity.

Our investments are quite diversified and safe. We are making some new investments in real estate and regional

expansion of our operations. After investing this year in GA Life Assurance in Kenya, we are very soon opening in Tanzania with 67 percent share of GA Kenya. We also have plans to expand into few more countries in East Africa.

“We always love to dream and implement it into reality. I will not ask for any shortcuts or easy deals that will make us complacent.”

GA Insurance was awarded General Insurer of the Year 1st Runner-up 2012

by Think Business earlier this year – a remarkable achievement given there are 38 general insurers in Kenya – and in 2011 it was named second runner up for Socially Responsible Corporate.

“We have been doing a lot of work in CSR by contributing two percent of our net profits every year,” concludes Srivastava. “We are focusing mainly in education, clean water and sanitation among others.”

To learn more visit www.gakenya.com.

www.aFRICAoutlookmag.com

75

A l t r i s k

Altrisk is a specialist long term risk product provider whose reputation has been built around superior underwriting expertise.

Writer Chris Farnell Project manager Sheridan Halls

76

www.aFRICAoutlookmag.com

f

in

a

nc

e

nichefocus M a i n ta i n i n g a

www.aFRICAoutlookmag.com

77

A l t r is k

n life the unexpected happens and while you can’t protect yourself against every potential hazard, you can take sensible measures to minimise the financial impact of the unexpected.

This is why long term risk cover is important to help safeguard you and your family’s financial security. But what happens if you struggle to get insurance because you have a chronic health condition or dangerous hobby?

That’s how Altrisk, an operating division of the Hollard Life Assurance company came about.

Altrisk was the brainchild of two individuals, an underwriter, Dalene Allen, and Nick Stern, an actuary.

They started out with the knowledge that there was a large amount of life insurance business being turned away as uninsurable and they believed that with the right approach anything is insurable at the right price, terms and conditions.

With the backing of Hollard and Hannover Re they created the business that became Altrisk. In just 14 years the company has grown to hold a seven percent market share in a tough industry with many competitors.

Altrisk has over 177,000 policies in force, with R226 billion sum insured.

They started out as a niche underwriter and quickly gained a reputation for insuring impaired lives – the ones the industry traditionally had no appetite for. They created a framework where they were able to apply specialist underwriting and policy structuring to people who were otherwise uninsurable. As their reputation grew they got more and more standard life insurance, based on their good service and excellent underwriting.

Today Altrisk is known in the market for its non-generalist approach and ability to think outside the box about individual life cover.

78

www.aFRICAoutlookmag.com

The benefit allows a client to boost their financial protection against cancer. It also gives you complete peace of mind that you are fully covered for cancer”

Managing director Michael Blain says Altrisk was ahead of the curve when life insurers started to unbundle life and investment products. There had been a long run of life insurance being sold as a bundled investment, and customers were complaining they weren’t getting investment value out of these products.

So what Altrisk did was clearly separate risk from investment business. “We’re a pure risk underwriter, so policy holders are clear about what they’re buying,” Blain says.

In 14 years the insurer has gone on to launch a range of firsts in the traditionally conservative life market.

Its Early Cancer Cover, South Africa’s very first early cancer insurance product, is one of these firsts.

f

in

As a specialist risk only underwriter, we’re competing with the biggest companies in the industry and distribution is becoming a battle of scale”

a

nce

Altrisk’s head actuary Ryan Chegwidden says the benefit provides cover for early or Stage 0 cancers, which are not covered by critical illness benefits.

Chegwidden says statistics indicate that there is a great need in the life insurance market for this type of benefit – according to reinsurance figures one in six people is diagnosed with early cancer.

Altrisk’s claim statistics mirrors this trend. “We noticed an increase in clients being diagnosed with early stage cancer and Altrisk’s claims queries showed that many clients thought they have complete cancer cover, when in fact they don’t,” he says. “This is why we decided to create this product.”

In October Altrisk further expanded its cover for cancer when it launched an all- inclusive comprehensive cancer benefit. Comprehensive Cancer Cover is a standalone benefit that provides complete cover for a wider range of cancers, right from Stage 0 (early cancer) to Stage 4.

“This is the distinctive feature of our new benefit - it includes cover for early cancers, which are excluded from traditional critical illness insurance,” Chegwidden says. “The benefit allows a client to boost their financial protection against cancer. It also gives you complete peace of mind that you are fully covered for cancer.”

He says Altrisk’s underwriting expertise makes it possible to develop such benefits. The insurer’s underwriting team has more than 250 years combined experience. Altrisk’s individual approach to underwriting means that policies are underwritten based on the customer’s specific needs, rather than simply following a checklist to see which premade product they’re going to sell.

Managing director Michael Blain says Altrisk’s recognised key strength is its underwriting skill, and that comes from a philosophy of flexibility

around risk based on the unique characteristics of the case. “Our underwriters have a reinsurance experience, so they understand the risk philosophy behind reinsurance underwriting as well as working directly with the market,” Blain says.

Recently there’s been some changes at Altrisk. The insurer’s parent company, Hollard Life Assurance, bought out the last of its minority shareholders, bringing Altrisk entirely under their ownership. Blain explains that Altrisk was always able to underwrite and administer on behalf of Hollard.

“As the business grew there were frictional costs for running the business as a separate entity,” he says. “The important component of this decision is that Altrisk has its own management infrastructure, ways of doing things and our own brand. We still operate as a separate entity.”

This change marks the beginning of a bold new era for Altrisk, but as the company grows and enters new markets it faces new challenges as well.

“We’re facing two main challenges,” Blain explains. “The first is the transition from the owner/ founder era that every start up goes through, to a more mature and corporate business. This is emotional and challenging in terms of succession and maintaining the character of the business, while undergoing these changes.”

Blain says the other big challenge is distribution.

“As a specialist risk only underwriter, we’re competing with the biggest companies in the industry and distribution is becoming a battle of scale,” he says.

Their biggest challenge is distributing products in a changing distribution landscape.

“We’re looking into improving our partnership models and general agency contracts where tied agents can get a quote from Altrisk because

www.aFRICAoutlookmag.com

79

a l T r I S k

SCOR SCOR Africa is a wholly owned subsidiary of SCOR SE, a global reinsurer. Based in Johannesburg, SCOR Africa provides life and non-life reinsurance support to insurers in sub-Saharan Africa. SCOR Africa has an A+ financial strength credit rating from S&P. Since its inception in 2009, SCOR Africa has grown significantly and is expected to write just under R1 billion in gross premium income in 2013. We provide product development, pricing and risk capacity support to insurers in subSaharan countries for health, group and individual life products. We are actively growing our non-life business and are currently reviewing opportunities in several African countries.

Bernard Ross: Managing Director-life, bross@scor.com Mohamed Motala: Managing Director Non-life, mmotala@scor.com terry Ray: CEO, tray@scor.com Tel: +27 11 507 3900 www.scor.com

we’re servicing niches the big companies simply can’t,” he says.

It’s in these niches that Altrisk sees its future.

“We’ve made a decision that we’re not a mainstream provider trying to be everything to everybody,” Blain says.

But this decision comes with its own set of challenges. “that means we need to carve out further niches in our risk pocket where we can develop products in market segments overlooked by the mainstream players,” he explains.

Many risk product providers go for volume over specialisation, which means they compete aggressively on price.

“But we operate beyond this and I think there are huge opportunities for those who can segment categories of risk and consumers and develop products that come at those segments with high value and niche appeal,” says Blain. to learn more visit www.altrisk.co.za.

80

WWW.AFRICAOUtlOOkMAg.COM

f

I

N

a

N

C

E

Pub DK 96 x 160 mm_Mise en page 1 29/10/2013 13:41 Page 1

Optimal Dynamics

2016

Strong Momentum Dynamic Lift Moving Forward Back on Track

2013 2010

2007 2004

Download the plan and access the latest SCOR financial information on your iPad

2002

www.scor.com

We’re a pure risk underwriter, so policy holders are clear about what they’re buying”

WWW.AFRICAOUtlOOkMAg.COM

81

P E T R O S A

PetroSA continues “to perform admirably”, achieving a R593 million net profit for the 2012/13 financial year.

Writer Ian Armitage Project manager Sheridan Halls

82

WWW.AFRICAOUTLOOKMAG.COM

E

N

E

R

G

Y

SOUTH AFRICA’S

National oil company

etroSA is South Africa’s national oil company and it plays what its website describes as an “instrumental role in the country’s transformation through a range of activities that span the petroleum chain”.

It is a giant. The question is where to start. Of course, it heavily involved in the exploration and production of oil and natural gas, selling petrochemical products to South Africa’s major oil companies and exporting petrochemical products to the international markets. In 1992 it famously started operating the world’s first gas-to-liquid (GTL) refinery at Mossel Bay – and that refinery remains the third largest among the five now operating across the globe.

According to its website, PetroSA’s core business activities are “the exploration and production of oil and natural gas”; “the participation in, and acquisition of, local as well as international upstream petroleum ventures”; “the production of synthetic fuels from offshore gas at one of the world’s largest GTL refineries”; “the development of domestic refining and liquid fuels logistical infrastructure”; and “the marketing and trading of oil and petrochemicals”.

“PetroSA operates the FA-EM, South Coast gas fields as well as the Oribi and Oryx oil fields.

The producing gas fields provide feedstock to the Mossel Bay GTL refinery,” the company says. “Outside South Africa, the company has exploration acreage in Equatorial Guinea and Namibia.

“PetroSA’s GTL refinery produces ultra-clean, low-sulphur, low-aromatic synthetic fuels and high-value products converted from natural methane-rich gas and condensate using a unique GTL Fischer Tröpsch technology. Key commodities produced include

WWW.AFRICAOUTLOOKMAG.COM

83

Pet r o S A

DEVELOPMENTNOMICS (PTY) LTD.

R

arely do words, so long ago spoken - in 1770 - so far away, have such resonance with an organisation’s service posture as the words spoken by John Adams, America’s first vice president and second president.

He posited that “whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” He could as well have been talking about the raison d’etre of our company.

We are wholly devoted to the notion of uncovering facts and producing evidence for the purpose of informing, formulating, monitoring, evaluating and implementing public policy decisions, improving public management, civic relationships and commerce.

©PetroSA

unleaded petrol, kerosene (paraffin), diesel, propane, liquid oxygen and nitrogen, distillates, eco-fuels and alcohols. Its world-class synthetic fuels and petrochemicals are marketed internationally,” it continues.

Project Ikhwezi, the flagship offshore development to produce and supply gas feedstock to the company’s GTL refinery, is scheduled to come onstream in 2013 and is “set to extend the refinery´s life and consolidate PetroSA’s position at the heart of South Africa´s transformation,” the company says.

“At the same time, we are vigorously pursuing new investment opportunities across Africa as part of our commitment to supporting the continent´s accelerating development,” its website adds.

84

This is a good point at which to introduce PetroSA’s vision 2020 which is to “become a fully integrated, commercially competitive national oil company, supplying at least 25 percent of South Africa’s liquid fuel needs” by, you guessed it, 2020.

“We aim to achieve this by sustaining the Mossel Bay GTL refinery as a profitable operation and use it as a platform to sustain our company; growing our company into a significant industry player, while ensuring security of energy supply for the country; transforming the company, the sector and society; and ensuring that the above are carried out in line with the highest safety, health, quality and environmental standards,” the company says.

www.aFRICAoutlookmag.com

Our globally benchmarked methodologies, tools and techniques are supported by over a century of practiced skills and experience of our principal officers who guide our service theatres of advisory, project management and monitoring and evaluation services.

While we are based at the southernmost tip of Africa, our outlook is global. Our consultants are multinational, multilingual and multidisciplinary.

We hold ourselves out to serve everywhere and anywhere development thought, word or action is desired and welcomed.

It will be our eternal pleasure to welcome you into our growing community of satisfied clients.

Tel +27 21 460 0435 Email info@developmentnomics.co.za

www.developmentnomics.co.za

f e a tu r e

www.aFRICAoutlookmag.com

85

Pet r o S A

©PetroSA

And despite volatile macroeconomic conditions, it continues to “perform admirably”, achieving a R593 million net profit for the 2012/13 financial year.

That profit though was much lower than the 2012 reported profit of R1.2 billion.

It blamed the sluggish performance on challenging macro-economic conditions, lowerthan-anticipated production at the Mossel Bay GTL refinery and increased operating costs.

“The Group’s financial position remains strong with total assets of R34. 2 billion and a cash balance of R7.4 billion,” Webster Fanadzo, PetroSA’s Acting Chief Financial

86

www.aFRICAoutlookmag.com

We are vigorously pursuing new investment opportunities across Africa as part of our commitment to supporting the continent´s accelerating development”

Officer, said in a statement. “An aggressive capital expansion programme, which includes the Project Ikhwezi offshore development project, and the envisaged acquisition of a downstream operation, will significantly change this scenario, as the Group is set to move from its current low-geared position to one in which it takes on more loan financing,” he added.

And there were many positives.

For instance, PetroSA significantly increased its revenue from R14.4 billion to R19.6 billion – the weakness of the rand against major currencies, improved local trading of finished products and the addition of new revenues from PetroSA’s

E

ne

r

g

y

©PetroSA

©PetroSA

acquisition of oil reserves in Ghana during September 2012 all playing a significant part.

During 2012/13, the group invested R3.7 billion on Project Ikhwezi, up from R601 million in the previous financial year.

Ms Nosizwe Nokwe, the PetroSA Group CEO, said the increase in capital expenditure on projects would in the short-term result in a diminished bottom-line. She however remains confident that in the longterm these initiatives would deliver sustainable returns.

“A very notable success over the past year, and in support of PetroSA’s long-term strategy, is the R232 million operating profit

This impressive year-on-year increase of 50 percent signifies PetroSA’s ongoing commitment to economic empowerment”

contribution, during the second half of the financial year, resulting from the acquisition of oil reserves and related production in Ghana,” she said.

PetroSA’s payments to Broad-Based Black Economic Empowerment (BBBEE) suppliers with a minimum of 25.1 percent black shareholding increased to R4.3 billion, in the reporting period, up from R2.8 billion in the prior year.

“This impressive year-on-year increase of 50 percent signifies PetroSA’s ongoing commitment to economic empowerment,” the company said.

To learn more visit www.petrosa.co.za.

www.aFRICAoutlookmag.com

87

C a st r o l

S out h

A f r ic a

g n i n n u R 88

www.aFRICAoutlookmag.com

E

ne

r

g

y

y l h t o o Sm Castrol South Africa has been making oil since men have been making cars.

Writer Chris Farnell Project manager Sheridan Halls

hen you’re driving your car it’s possible you don’t spend a great deal of time thinking about the engine lubricant. It’s an essential part of your engine, sure, but it’s like the margarine in a sandwich - you don’t tend to think of it as the most essential component.

And yet Castrol knows that for an engine to work to the absolute best of its potential you need an oil that has been developed alongside the engine itself. That’s what it has been doing for over a century.

“We’re a global company that’s been around over 100 years and we continue to shape the whole industry,” explains Castrol South Africa’s marketing director, Shren Moodley. “We’re about driving new technology and leading the agenda for our market sector. We work in the automotive, the industrial, aviation, marine, and mining sectors. We’ve got a wide portfolio and a depth of over 100 years experience. There simply aren’t many businesses in the market that can match us for specialisation or longevity.”

Castrol uses its experience to create a top of the line product.

“We’re a premium brand and a market leader,” Moodley says. “We’re slightly more expensive than most products on the market, but what most people don’t know is that we invest that money right back into our research and development. We continue to keep our R&D breakthroughs going forward, just as we have continued to do that consistently for the last 100 years. Our products have often been used at the forefront of world changing breakthroughs such as land speed records, marine racing and aviation.”

Castrol is able to do this because of the close partnerships it has built with its customers, over the years developing products to specifically meet the needs of the products those customers are designing.

www.aFRICAoutlookmag.com

89

C a st r o l

S out h

A f r ic a

“What sets us apart is that we work very closely with our partner companies,” Moodley says. “We’ve got a long history with firms such as BMW and Volkswagen and we’ve worked with them developing technology to fit their purposes. In terms of our depth of partnerships we’re second to none.

There are more cars on the road in Africa that are born with Castrol oil in the engine than any other oil. So we have a great relationship with those manufacturers, they’re developing their technology with us, from basic cars to supercars such as Lamborghini.”

Of course, you don’t reach levels of recognition and success like that without having to overcome some pretty big challenges along the way.

“Everything we do is done to the very highest safety standards,” Moodley points out. “Lubricant is basically oil and we know that that can have a big effect on the environment, so we have to have very high standards in terms of how it is used and how we protect the environment.

“For example, if you look at South Africa, we’re on the board of the Rose Foundation, a non-profit organisation that provides education and encourages for used oil to be collected and disposed of. We’ve been at the forefront of that foundation ensuring that lubricants are used in a safe manner.

“When we supply lubricant we have checklists and check points to help customers be aware of the safety issues. We’re driving for safety measures such as extinguishers. We start every meeting talking about safety. And we try to spread that attitude to both our customers and suppliers.”

Along with an increasing appreciation of the environmental issues that their industry must consider, Castrol is seeing other changing attitudes among the markets it traditionally sells to.

90

ANIKCOR INSTALLATIONS Emerging as a leader in the oil and lubrication industry, we pride ourselves on excellence and workmanship. Our breakdown call-centre is managed by qualified staff that excels in: Efficiency – Our carefully designed services and superior products are manufactured and compiled with our customers in mind.

Reliability - The quality of our product range and our workmanship is superior, ensuring confidence in our products and service.

Being a one-stop provider – Our expert design department ensures that we supply exceptional quality installations. We maintain, upgrade, and provide consultation to ensure cost-effectiveness, promote productivity, reduce risks, and increase safety.

Tel +27 11 395 2144 Email info@anikcorinstallations.com

www.anikcorinstallations.com “We’ve had a very good year, within our region one of the best years ever,” Moodley says. “There’s a strong move towards synthetic products and synthetic oils are where our strengths are. Many manufacturers are demanding more sophisticated lubricants and oils, which plays more and more to our advantage. That’s really helping us out. We’re getting a really good performance out of our products; there are growth opportunities out there that we’re looking at. It’s been good all round.

“We’re also seeing the rise of the emerging middle class in Africa,” Moodley continues. “We’re working to provide solutions for this rising middle class that will be the future of Africa.”

To take the best possible advantage of those growth opportunities, Castrol makes a concerted effort to employ the best and brightest.

www.aFRICAoutlookmag.com

Fury Motor Group

T

he Fury Motor Group opened its doors with its first dealership in 1995 and has since grown into a twelve dealership strong motor group, showcasing SA’s leading motor brands. The Fury Motor Group also has its own parts distribution centre and wholesaler, Fury Auto Parts, which supplies a diverse grouping of motor retailers, general purpose motor repairers and panel beaters with a wide range of leading brand genuine auto parts.

At our Fury Academy we provide the highest level of technical training and level-testing to up-and-coming motor-trade technicians and autobody repairers.

For more information, visit

www.fury.co.za.

E

ne

r

g

y

Fury Motor Group – Proud Retailers of SA’s leading brands

Thanks to Castrol SA - Proud oil & lubricant supplier to the Fury Motor Group for 18 years

www.aFRICAoutlookmag.com

91

C a st r o l

S out h

A f r ic a

McCarthy Motor Group McCarthy Motor Group is proud to be associated with Castrol, one of its partners in automotive excellence.

The McCarthy Motor Group provides a 360 degree vehicle sales and service solution, with over 100 dealers nationwide offering 27 major vehicle brands. We can also handle all your fleet requirements.

“Castrol is flexible in terms of how we recruit,” Moodley says. “We will use different techniques depending on the position we have to fill. We have a solid graduate recruit programme as well as a direct entry system where we recruit the right person for the right job from other industries. We also have a strong BBBEE push to find the best black talent out there, and we’re at the forefront of that.”

Castrol’s recruitment efforts also benefit from the company’s links with its parent company, BP. “We share a lot of resources with BP, so we enjoy a combination of the cultures of Castrol and BP so that we get a nice diversity within the company.

It helps that we also pay really well, so that’s one way we recruit. We also have programmes to identify high potential talent for accelerated development.

Our development programme is excellent because of the breadth of BP we offer great sales, marketing and finance expertise that can give you great exposure to all kinds of skills and disciplines.”

As well as recruiting the best available staff from a wide array of backgrounds, Castrol also takes measures to ensure that each and every member of its staff is up to date with the latest breakthroughs in the field.

92

www.aFRICAoutlookmag.com

Our innovative online McCarthy Call-aCar service assists customers to locate their vehicle. After that, our trained and experienced techni-cians provide exceptional after-sales service. We stock only genuine spare parts and a wide range of vehicle accessories. We also sell - and can fit - most leading tyre brands.

Our Club McCarthy loyalty programme gives customers peace of mind, both on and off the road.

For these reasons McCarthy has remained one of South Africa’s leading vehicle retailers for over 100 years.

Tel 0860 22 33 44

www.mccarthy.co.za

We’re a global company that’s been around over 100 years and we continue to shape the whole industry”

“We have a research centre in Pangbourne in the UK that is constantly developing new technologies and they let us know what the latest engine technology or lubricant technology is,” Moodley says. “So right now for instance the market is demanding much more for much less, with engines getting smaller and smaller as we try to conserve fuel while still getting more power out of the engine. This means that there’s demand for a stronger oil to keep up with those changes.

Meanwhile, we also work very closely with our customers, so through our partnerships we get a continuous information feed regarding what the latest developments are. We’re seeing a positive future with plenty of growth opportunities and we’re confident we’ll be able to capture those opportunities.”

To learn more visit www.castrol.com.

E

N

E

r

G

y

Freightmax is a leading Supply Chain Partner to Castrol.

We are very proud to be associated with Castrol and value the partnership that has been built over many years.

Email: brian.giddey@fmax.co.za Tel: (+27) 31 274 9200 www.imperiallogistics.co.za

WWW.AFRICAOUtlOOkMAg.COM

93

H E L I O S

94

T O W E R S

N I G E R I A

www.aFRICAoutlookmag.com

T

e

l

ecoms

Helios Towers Nigeria provides fully-managed tower sites for the telecoms industry in Nigeria. We spoke to CEO Inder Bajaj about keeping Nigeria connected.

Writer Hannah Eiseman-Reynard Project manager Donovan Smith

elios Towers Nigeria puts up and maintains telecoms towers for the telecoms industry, providing an impressive guaranteed 99.99 percent uptime to clients, despite an average of just two hours grid time per day.

Founded in 2006, this Nigeria-based company builds, manages and rents tower infrastructure structures to mobile network operators (MNOs) and internet service providers (ISPs) to host their antennas, base stations and transmission equipment.

Helios Towers Nigeria’s management of towers includes security, the supply of power, batteries, air-conditioned equipment shelters and rectifiers,

www.aFRICAoutlookmag.com

95

com p a n y

96

n a me

www.aFRICAoutlookmag.com

f e a tu r e

www.aFRICAoutlookmag.com

97

H E L I O S

T O W E R S

N I G E R I A

After site acquisition it takes 60 days for a new tower to be operational and it takes 30 days to acquire a site, so it’s only 90 days total for a brand new site”

98

www.aFRICAoutlookmag.com

as well as on-site support in the event of any problems to ensure the guaranteed uptime.

Clients – telecoms companies – use the towers on a rental and lease basis and Helios Towers Nigeria has achieved an impressive average 2.8 clients per tower referred to as Colo Ratio.

“Essentially we are a telecoms infrastructure company and we invest in and manage our own infrastructure,” says CEO Inder Bajaj.

Helios Towers Nigeria commenced operations in 2006 and is the oldest and largest independent tower company in the country.

Key customers include global system for mobile (GSM) companies MTN, Airtel and EMTS. The sector is growing and moving fast.

“Nigeria has around 25,000 towers and the number is growing by three to four thousand every year,” Mr Bajaj says.

Helios Towers Nigeria owns and runs around 1,300 and is putting up around 600 new towers per annum.

“We are a Greenfield operation, specialising in new sites and putting them up speedily,” says Bajaj. “After site acquisition it takes 60 days for a new tower to be operational and it takes 30 days to acquire a site, so it’s only 90 days total for a brand new site. We ensure delivery within five to six days to be operational for second and third customers. That is a key differentiation we offer to our customers apart from the uptime.

We have a sister company Helios Towers Africa which operates in Ghana, Tanzania and the DRC.” According to Bajaj, many telecoms companies in Nigeria are currently in the process of “commencing their process for sales and leaseback off towers to tower companies” and it “is expected to happen over the next two years.”

f e a tu r e

Telenoetica limited

T

elenoetica limited caters to the business needs of Telecom Operators, Tower companies and OEMs, through its services, solutions and products offerings. Established in July 2009, we have been recognized by our expertise and intent to deliver world-class solutions and services to our evergrowing list of clients.

With a vision to add tangible value to diverse sectors across Africa, Telenoetica started business by supplying LED (Light Emitting Diode) based 48 V DC Aviation warning Lights and Telecom site security lights for tier 1 telecom operators. Today we are the single largest manufacturer/supplier of LED based lights with more than 6000 such Lights installed in Year 2012/2013 and another 10000 Lights targeted for sale in 2013/2014 including our innovative 220 V AC powered LED lights for other sectors such as Banking, Oil and Gas and other SMEs. Over the years we have added wide range of Telecom Infrastructure solutions which save energy and help in containing OPEX such as Intelligent Power Management and Hybrid management systems, Li Ion batteries, DC Generators, DC Air conditioners, Modular Rectifiers and Modular Invertors.

We started our telecom projects division in 2011 and have since been performing

Turnkey Site Build services, Collocation upgrades, Radio Access Technology upgrades, RF optimization services, Site Audit and advance site data collection and Analytic services.

Telenoetica added the pioneer service of telecom equipment Test and Repair in 2013 and has quickly gained immense confidence of Tier 1 telecom operators and tower companies. While in-country repairs looked a distant dream, we championed this service with a very high success rate of incountry repairs.

We also realized that sophisticated OPEX saving concepts such as IPMS, Solar Hybrid systems etc don’t succeed because of lack of eco-system to support their functioning. Telenoetica is providing maintenance and operational support services for these equipments and creating the necessary workforce aligned to its mission of: Partnering with world class

technology enablers and professionals

AND Engaging and developing local

resources for efficient service delivery.

Email info@telenoetica.com Email support@telenoetica.com www.telenoetica.com

www.aFRICAoutlookmag.com

99

H E L I O S

T O W E R S

N I G E R I A

ghaddar machinery & COMPANY nigeria ltd.

We are pleased to introduce our Company GHADDAR MACHINERY & COMPANY NIGERIA LIMITED branch of GHADDAR MACHINERY (BEIRUT-LEBANON).

We are a world class Engineering Company, specializing in the distribution of PERKlNS Engines-UK and LEROY SOMER AlternatorsFrance. We rank among the top three distributors of Perkins Engines, distributing over 20,000 units worldwide.

Our quest to become a clear leader with international pedigree in the sales of Industrial Generators cannot be over-emphasized , as we have put in place state of the art equipment handled by well-trained and seasoned professionals in the Engineering & non Engineering fields.

“It’s a win-win situation as it serves our customers as a financing option and also outsourcing to specialists while they focus on other key aspects of business,” he explains.

“As the market grows, along with the leaseback sales of towers, we are positioned to increase our market percentage share dramatically. We aim to run 20-30 percent of towers in Nigeria and we aim for a very high level of customer satisfaction.”

Helios Towers Nigeria currently runs about eight percent of all telecoms base station electronics in a country whose telecoms market is growing rapidly with respect to coverage into new areas and as well as the capacity growth with usage growth in voice and data.

100

www.aFRICAoutlookmag.com

With local distribution network scattered all over Nigeria, we are known to produce and service best quality Generators at very affordable prices prompting customer delight and satisfaction at all times.

As the market grows, along with the leaseback sales of towers, we are positioned to increase our market percentage share dramatically”

Innovation, quality and partnership have always been at the core of the corporate vision. This vision helped the company widen its portfolio of products while maintaining a sound image and unrivalled quality products.

Being part of the worldwide Perkins distributors’ network dedicated to providing a service of excellence to the operators of the Perkins engines, GHADDAR Machinery & CO Nig Ltd maintains an inventory of Genuine Perkins Spare Parts, renowned for their reliability and durability.

Tel +234 1 7765926 Email drm@ghaddarnig.com

www.ghaddar.com

f e a tu r e

www.aFRICAoutlookmag.com

101

H E L I O S

102

T O W E R S

N I G E R I A

www.aFRICAoutlookmag.com

T

E

l

E

C

O

M

S

the secret to Helios tower Nigeria’s success is that it hasn’t been afraid to invest big in its own infrastructure. “to run a successful service, grid availability is vital,” Bajaj says. “In Nigeria we have only two hours a day of electricity on the grid – for 22 hours To run a a day we need to create our own successful electricity and run generators.”

He goes onto explain some of the service, grid current challenges facing the availability is vital” industry: “the evolving industry means that we have to work around the infrastructure,” he says. “Providing our own electricity with systems of generators for 22 hours a day is no small task. this is challenging and we see the Nigeria is the largest market in Africa situation improving as the country invests in power generation, having the largest customer base transmission and distribution. the of 110 million, equating to over $10 other challenge is multiple permits billion revenue per annum. and taxes by the local government, the telecom penetration is at around 60 percent and growing which state governments, as well as federal government. the industry makes the market very attractive.

and the regulator are working towards telecoms being an essential service and the simplification of permits and taxes.

“Another challenge faced in recent times is security in select areas of the Northeast of the country. three states were declared in a state of emergency earlier this year. Having said this, the government and security agencies have been very supportive,” Bajaj says. “But the future is bright and as coverage improves, the customer take up of mobile services will increase and, usage trends being positive, the industry is expected to grow exponentially.”

Helios towers Nigeria is making huge headway despite the challenges and one can only imagine how far it will accelerate its market share as the market grows. the company remains one to watch. to learn more visit www.heliostowers.com.

WWW.AFRICAOUtlOOkMAg.COM

103

E l ite

C l e a r ing

a n d

Fo r w a r d ing

( Pt y )

Lt d

A clear winner

Elite Clearing and Forwarding (Pty) Ltd is an expert international shipping company offering comprehensive logistics & freight solutions.

Writer Chris Farnell Project manager Stuart Shirra

104

www.aFRICAoutlookmag.com

S

U

p

p

l

y

hatever industry you work in, the chances are that at some point you rely on logistics.

Whether it’s a question of importing essential supplies, or getting your own products to foreign markets, virtually every company has to, at some point, entrust the cargo that makes it possible for them to do business to someone else, often over a long distance with plenty of potential hazards along the way.

Elite Clearing and Forwarding is a company dedicated towards making that part of your business as painless as possible.

As Ben Van Rensburg, Elite Clearing and Forwarding’s Managing Director explains, “We see ourselves as a logistical management company.

We manage the process from A-Z, making sure everyone involved does whatever is needed to get cargo from the start to the end of its journey with the least possible risk and in the most cost effective way.” the movement of cargo doesn’t just involve one component; it may involve trucks, ships, warehouses, harbours or planes, each run by a separate company with its own procedures, rules and communications channels. this creates a potential minefield of problems as cargo is passed from one company to another. Elite Clearing and Forwarding’s job is to make that transition as smooth as possible with no or minimal delays at the lowest cost.

“We act somewhat like a musical conductor,” Van Rensburg says. “By making sure everything happens when it needs to happen, as it is supposed to happen. We see to it that the cargo is properly insured, with documentation done at the loading and discharge points in time, and the cargo delivered in a timely and safe manner. We cover

C

h

a

I

N

the entirety of South Africa and do regular imports and exports to all major harbours and cities in South Africa. We also move a lot of cargo into the African continent, as South Africa is largely seen as the gateway into Africa.” the company handles all types of cargo from containerised and heavy machinery through to small air freight consignments. “By us managing the entire international logistics process, it allows our customers to focus on their core business, the manufacturing and/ or selling of their goods. We take away the concerns of international logistic risk management. All they need to do is the buying and / or manufacturing of their products and the selling, and we’ll make sure it gets to the right place at the right time,” Van Rensburg says.

As we’ve already mentioned, logistics only works well when a whole host of separate organisations are able to communicate and interact well, and Elite Clearing and Forwarding specialises in creating

the relationships that allow this to happen. It is the mutual factor that ties the entire international logistics process together.

“Our niche is that we provide a personalised logistical solution for our clients. We believe relationships get things done, so it’s important to us to have the right relationships with our service providers and customers,” van Rensburg says. “there are a lot of people and companies involved at various points along the way, and it is essential that they have the good relationships that will make sure things go smoothly.

So we make sure communication channels are always open and that we work with the right people.”

However, because Elite Clearing and Forwarding doesn’t run any vehicles of its own, it can often be challenging having its cargo customers’ cargo entirely at the mercy of its service providers. “the biggest challenge we’ve faced is that we are not in direct

WWW.AFRICAOUtlOOkMAg.COM

105

E l ite

C l e a r ing

a n d

Fo r w a r d ing

( Pt y )

Lt d

control of the harbours, vessels or aircraft so we’re sometimes dependant on third parties for the movement our clients’ cargo,” Van Rensburg admits. “But the reason we exist is that we specialise in sorting out the problems that often arise with shipping lines, airlines, customs and harbours, to make sure there are no undue delays.

This we do through good relations with both our clients and the stakeholders in the various stages of the cargo movement” But delays can be hard to avoid, not just because of local bureaucracy, but also because of problems out of everyone’s control like the weather or unexpected events like vessel breakdowns or strikes.

“One of the main issues that we have struggled with is harbour delays both in South Africa and overseas, especially this past year,” Van Rensburg explains. “I had a conversation with the chairman of the Harbour Carriers Association of South Africa who said they are having huge problems with climate change in Durban. Weather conditions especially winds are playing havoc with the loading of vessels departing and arriving vessels in ways that we didn’t see even last year. Another big issue is we’re still seeing delays due to strikes at various points along the cargo’s path, and the impact we’re still feeling from general world economy.”

To combat these problems, Elite Clearing and Forwarding needs good people, both among its service providers and its own staff, and the company has exceedingly high standards when it comes to picking its own team.

“We recruit as widely as possible to attract the best candidates,” Van Rensburg says. “We want to

106

www.aFRICAoutlookmag.com

S

U

p

p

l

y

C

h

I

N

9334

make sure we have good employment practices so that we attract talented people that want to work at our company and make sure that the staff are properly motivated and competent as well as trained to handle any shipment that may be handled. At the end of the day we’re in a service-based industry. We don’t sell crates or containers; we sell a service provided by people, as it is people that make sure cargo moves.

Our business is only as good as the person you speak to at the other end of the telephone line, so we make sure every employee is a shipping and usually a product expert as every product has different regulatory and movement requirements. We have in-house training in operational and logistics procedures, including refreshers and ongoing procedural training to identify any gaps in our people’s training to improve our staff as necessary.”

Of course, if you’re investing that much in your staff, you want to keep hold of them and so Elite Clearing and Forwarding provides plenty of incentive for them to stay with the company.

“Our staff turnover is low because we believe that to retain staff you have to look at the entire package, not just salary but work culture, and ensure that although we’re busy and sometimes require long working hours, we make sure people can live a life outside of the office,” Van Rensburg says.

So what for the future of Elite Clearing and Forwarding? “there’s huge opportunity for growth, especially in Africa,” he explains. “We believe we’re doing something right because a lot of companies have stayed loyal with us over the years and new clients come continuously on board. As long as we continue what we’re doing, we will always have a competitive edge and the company will keep on growing. It is important that our clients are at all times informed of the exact status and locations of their cargo and for that we use various technological systems because we believe that we’re a communications company as much as a cargo company. We can’t control the weather or the harbour conditions but we can control our communication with our clients, so we’re always working to make sure that our clients are constantly informed and up to date regarding their shipments.”

a

WE WISH YOU LOADS AND LOADS MORE SUCCESS. We would like to congratulate Elite Clearing and Forwarding on their growth and development as a comprehensive logistics and freight solutions service provider in South Africa.

Through our continued partnership we hope to continue being a part of their ongoing success. Nedbank can also be of service to you, your business, staff and household through our decentralised service model that allows all our regions to offer customised business solutions.

For more information please email us at business@nedbank.co.za.

Nedbank Business Banking – partnering for growth for a greater South Africa. nedbank.co.za Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

to learn more visit www.elitecf.co.za.

WWW.AFRICAOUtlOOkMAg.COM

107

a i r

u g a n d a

The

wings of

East Africa

Meridiana Africa Airlines Limited, trading as Air Uganda, is a privately owned airline founded in 2007 in Uganda.

Writer Hannah Eiseman-Reynard Project manager James Mitchell

108

www.aFRICAoutlookmag.com

S

u

p

p

l

y

c

h

a

i

n

ir Uganda was established in 2007 as a quality regional airline after more than 20 years without a national carrier in Uganda. In the six years since, the airline has grown from serving approximately 80,000 passengers a year to 170,000 passengers per year and runs on the basis of three pillars of high service and operating standards, reliability and punctuality.

“How has the past year been for business for Air Uganda?” asks Cornwell Muleya, CEO of Air Uganda.

“We have been growing steadily over the past year and have consolidated our routes across East Africa. The Ugandan air transportation market has been growing at approximately 15 percent every year now for six years in a row. Incidentally, we turned six years old today.”

Air Uganda, otherwise known as “the wings of East Africa”, runs a two class product on board: Crane Class, which is its premium products, and an economy class. The airline also runs a frequent flyer programme called the Celestair Club.

“We maintain a small, homogenous fleet,” continues Mr Muleya. “This allows us to standardise our product on board and minimise operating costs.

We were founded in 2007 in response to the need of Uganda to have an airline operating out of Entebbe airport.

From here we connect passengers to all major cities in East Africa and in particular to Nairobi, Bujumbura, Mombasa, Juba, Dar es Salaam, Kigali, Kilimanjaro and Mogadishu.”

Air Uganda makes the most of its small fleet of three aircraft by running an extremely efficient and punctual service.

It gained IATA Operational Safety Audit (IOSA) certification quickly two years ago, allowing it to become equal in terms of safety and operating standards like the large international players in the industry.

www.aFRICAoutlookmag.com

109

a i r

ug a n d a

And its IOSA certification has just been renewed for another two years as per IATA practices and procedures.

With such recognised service standards, Air Uganda boasts a codeshare agreement with Rwandair and has global interline partnerships with SN Brussels Airline, British Airways, Emirates, Kenya Airways, Ethiopian Airlines and Qatar.

Through these partnerships the airline connects its passengers on long-haul services to other regions of the world.

“Last year Air Uganda took control of its Entebbe Hub operations by starting its self-handling services,” says Muleya. “We wanted to take control of our own product in terms of standards and service levels. We were especially keen to ensure a quick turnaround of our aircraft and to minimise delays out of our home base. We can turn an aircraft around within 30 minutes and taking control of Entebbe Hub has improved our output in terms of punctuality across our network. This has helped enhance our reputation for having the best punctuality service of all the airlines in our markets. We are a full-service carrier and we have continued to improve our ground and on-board services each year.

110

“Aviation is a people’s business,” Muleya adds. “We therefore invest in the training of our people to keep a high standard and personalised warm reception for our passengers. The cleanliness of our premises, as well as the aircraft on board is also important in ensuring our customers get the best from a quality airline. So, is our reputation for being on time.”

In a fast-growing industry, finding staff with the right skills can be tricky.

How is Air Uganda ensuring it has the best people for the job? “Like all airlines in this competitive industry, staffing has been a huge issue as skilled personnel are in short supply,” he says. “There is a shortage in Africa of qualified technicians, engineers, pilots and other operational staff.

For such skilled staff we look to the international labour market for pilots, engineers and some key financial services. In critical areas like aircraft maintenance we may use short term interventions from specific organisations abroad. ” However, Air Uganda has also responded to the skills shortage challenge with significant investment in the training of its people. It hires highly educated Ugandans and trains them to international expertise.

www.aFRICAoutlookmag.com

Meridiana

M

eridiana is a private italian Air Fly Company, second player behind Alitalia. The Company headquarter is in Olbia, Costa Smeralda and has been founded on the 29th of March 1963 By Prince Karim Al-Hussayn Aga Khan in name of Alisarsa. In the 1991 tha Company name has been changed in Meridiana.

At the and of February 2010 the merger with Euroflay, second flyer italian Company specialized on charter long routes, rename Meridiana as Meridiana Fly. In October 2011 Meridiana has acquired the majorities of Air Italy, and on May 2013 has bought the minorities of Air Italy delisting by the Italian Stock Echange.

Today Meridiana offers connenction from italian islands to the rest of Italy, Sardinia from Olbia e Cagliari and the Sicily from Catania and Palermo to Milan, Roma, Naples, Verona, Turin, Bologna etc..

The Company is specialized on leisure destination: from the core italian airport flyes to the beßt piace in Africa (Egipt, Red sea etc..). From Rome Fiumicino and Milan Malpensa Meridiana is one of the best european player on intercontinental leisure destination travelling Maldive, Mauritius, Kenya, Zanzibar, Madagascar, Cuba, Santo Domingo e Brasile.

Tel 0871 423 3711

www.meridiana.it

f e a tu r e

www.aFRICAoutlookmag.com

111

a i r

ug a n d a

“We have a development programme within the company for local staff because that is more sustainable for the airline in the long run. We use joint programmes with international organisations like IATA and AFRAA to provide cost effective training at regional centres in Africa, except for specialised trainings like simulators, which, for the aircraft we operate, are found overseas. We send people abroad for a lot of that in keeping with international standards. We are regulated in such areas by our CAA and international aviation organisations such as ICAO to which all state parties have subscribed for the aviation industry,” Muleya says.

As a result of such measures, Air Uganda boasts a workforce which is more than 90 percent local and 10 percent international.

“One of the biggest challenges for any airline must be the security; how do you address this risk in in the industry?

We cooperate and work closely with many service and security organisations at each of the airports we operate from. Typically, the airline has its limited security personnel and they work hand in hand with airport security personnel, who in turn work with the country’s security organsations and structures.

There is a great deal of sharing information on risks and incidents so that the safety and security of the travelling public is not compromised.

This will remain a challenge of the industry for many years to come. Our commitment is to use best practice in all areas and to comply with the safety standards in all the countries in which we operate. There is a huge sharing of knowledge as we try to close any perceived gaps in this critical area of our industry,” Muleya says.

In addition to international standards and industry best-practice, each country Air Uganda operates in has its own stringent checks. For example, while most airports will have two or three

112

www.aFRICAoutlookmag.com

Air Uganda makes the most of its small fleet of three aircraft by running an extremely efficient and punctual service”

checks before passengers can get on the plane, specific countries where the risk is higher may have even seven check points.

The other challenge hitting the entire industry is cost. At the top is the cost of fuel, which is usually out of the control of the airlines and in recent years has accounted for approximately 40 percent of airline operating costs.

“When the fuel prices increase that is a big problem for the airlines. Also, with increasing airline taxes at most airports, there is a balancing act to be struck in the pricing of the tickets as the passenger will not distinguish between the fare, which goes to the airline, and the taxes, which accrue to the airport authorities and the governments,” concedes Muleya.

The other challenge for a growing regional carrier in Africa is that not all the airport destinations Air Uganda operates reach the international standards passengers expect. “There are differences in the quality of airport facilities, especially for transit passengers who expect to connect seamlessly to other destinations,” says Muleya. “The customer service offered by airport personnel in processing passengers and their baggage also differs, with some airports faring better than others. We need to reach minimum operating standards to ensure passengers

S

u

p

p

l

y

c

h

a

in

• Airline fuelling & refuelling • Fuel depot • Fuel transportation

www.kushpetroleum.net Tel: +211955125613, +211 977 116305 Juba International Airport, Juba - The Republic of South Sudan

feel comfortable to come and fly and transit through our airports. We are pleased to note that most, if not all the airport authorities in the region, have recognised this problem and have announced programmes to upgrade many of these airports.”

So far the airline is doing an excellent job at continually improving the service offered.

It has developed an excellent website which allows customers to book and pay online, using all forms of payment including mobile money, in response to the needs of the consumer.

“We are taking advantage of technology with our website initiatives.

In our region mobile money is big and customers expect this platform from any progressive company. Therefore allowing customers to pay using mobile money is a natural progression of the changes reflected by our society in East Africa,” says Muleya. “We also have an active social network programme so

that customers can interact with us and make bookings on both Twitter and Facebook. We are growing our followers on those platforms and this has kept us on our toes.”

So what does Air Uganda have planned for the future?

“We have dealt with most of the initial challenges of starting up the airline in the past five years. We are now in the process of consolidating our position in the market by offering more frequency to our key destinations in East Africa,” says Muleya. “We aim to grow at a rate that allows us to balance costs and services effectively.”

Alongside this Air Uganda is planning to open a number of new routes, not just following other operators into already crowded market places, but by pioneering new routes to niche markets in the region.

To learn more visit www.air-uganda.com.

www.aFRICAoutlookmag.com

113

S a a b

G r i n t e k

D e f e n c e

Saab Grintek Defence is a South African company with a global reputation.

Writer Ian Armitage Project manager Tom Cullum

114

www.aFRICAoutlookmag.com

M a n u f a c t u r i n g

he common assumption, particularly in the defence and security industry, is that Africa is not strong when it comes to technology and innovation. Saab Grintek Defence has turned this claim on its head.

According to CEO Magnus Lewis-Olsson, South African-made electronic warfare technology has and continues to make its mark in the international military arena, with home-grown self-protection systems being used by numerous defence forces around the world.

An impressive range of defence forces, he says, use electronic warfare technology made and invented in South Africa.

Amazingly, more than 90 percent of the systems that are being designed and produced by Saab Grintek Defence are being sold on export outside the continent.

Unsurprisingly this has been celebrated by the Department of Trade and Industry (dti) who named Saab Grintek Defence Best South African Export Company at the inaugural South African Premier Business Awards earlier this year.

Hosted by the dti, Proudly South African and Brand South Africa, the award aims to recognise all export industry sectors from services to manufacturing and encourage other South African companies to participate in international business development and markets.

It also recognises South African businesses which invest in both human and technical resources in various projects or activities, produce quality products and services, and remain domestically and internationally competitive. “We are a proudly South African company,� Lewis-Olsson says. “And the fact our products are globally exported represents valuable source

www.aFRICAoutlookmag.com

115

C O M p a N y

N a M E

SAAB GRINTEK DEFENCE Saab GRINTEK DEFENCE, a South African company, has consolidated

We combine our local South African

its position on the African continent as a

expertise with proven international

leading defence and security company,

capabilities to develop the prosperity of

bringing capabilities including electronic

the nation along with its protection.

warfare, sensor technology, command and control, training systems, avionics, air traffic management, security and support solutions to the African and international market.

116

WWW.AFRICAOUtlOOkMAg.COM

We employ over 600 staff locally, working across the defence and civil security spectrum. Saab’s South African employees are engaged on all levels of the company,

f E a T U r E

YOUR WINGMAN IN AFRICA applying their skills ranging from highly specialised research to manufacturing and support staff.

Leading edge technologies are developed and matured, resulting in new products manufactured to the highest quality standards for security and defence use globally.

www.saabgroup.com/southafrica WWW.AFRICAOUtlOOkMAg.COM

117

S a a B

G r I N T E k

d E f E N C E

Our primary product is our electronic warfare products (EW) and we mount those predominately on helicopters and fighters but also on transport aircraft and we have a product that goes onto civilian aircraft to detect and protect from missiles and lasers�

118

WWW.AFRICAOUtlOOkMAg.COM

M a nu f a ctu r ing

of revenue for South Africa. Job creation in engineering and production are other obvious advantages.”

Saab Grintek Defence is owned by Swedish parent company Saab with a local BEE shareholding of almost 30 percent.

“Our primary product is our electronic warfare products (EW) and we mount those predominately on helicopters and fighters but also on transport aircraft and we have a product that goes onto civilian aircraft to detect and protect from missiles and lasers,” Lewis-Olsson says. “We also make avionics products, black boxes and recording and health monitoring systems.

Those two categories – EW and Avionics – are mainly sold on export.

Around 75 percent of our turnover is export. Our biggest customers are in India, Southeast Asia and Europe but some are also in the U.S. “Export is a clear driver for any nation and our products are being sold across the world. It is great to see our products in Asia, Europe, Northern Africa and the U.S. but I have to admit we need a better local foothold in South Africa and Sub-Saharan Africa and hopefully we can open doors inside our own home market. We have about 600 employees in South Africa but we also have a telecoms arm called Saab Grintek Technologies which employs around 250-300 so in total we are just shy of 1,000 people locally. All employees, aside from five people, are South African so it’s not Swedes moving into South Africa - it’s a South African run company.”

Business has been good despite the general downturn in the global defence industry and according to Lewis-Olsson Saab Grintek Defence has “taken quite a few orders on the EW side and the outlook for the beginning of next year is good.”

www.aFRICAoutlookmag.com

119

S a a b

G r inte k

De f ence

“We do upgrades to aircraft when it comes to EW, so I suppose we’re in a good situation now where not necessarily everyone buys a new aircraft,” he explains. “We also integrate our equipment into new aircraft and in those instances we go business to business where we supply our equipment to the helicopter or fighter manufacturer and they integrate it. I think it’s going well. It’s looking even better for the next year. We’ve had a good year.

“What’s our secret? I think we have a product that works. It’s not something that we need a ten year plan to build. We’ve proven that it works and has many applications.

120

www.aFRICAoutlookmag.com

The fact our products are globally exported represents valuable source of revenue for South Africa.

Job creation in engineering and production are other obvious advantages”

We have an edge. I suppose the general downturn of the defence industry has been largely in Europe rather than Asia and India. Of course defence spending is dropping in the U.S. but the local U.S. companies haven’t seen that much of a problem yet. If the general mood in the industry however is that if it’s all going down then that influences the buyer but to be quite honest we haven’t seen much of this. If anything we see that companies are starting to acquire equipment again.

“Some of our markets are in Africa – both North Africa and Sub-Saharan Africa – and there we face a lot of challenges. How does the market work and how do we do transparent

M a nu f a ctu r ing

We want to keep selling our EW equipment and we’d like to break into the Sub-Saharan Africa market”

business? Despite the challenges of working in Africa the market has much potential.

“In Sub-Saharan Africa we see countries that are more transparent.

They have procurement methods and process that at least resemble what we’re used to from the rest of the world. That would be countries like Namibia, Botswana, Ghana and possibly Kenya. Those countries are our main focus aside from South Africa.

“In 2014 we have a lot of deliveries to get out the door,” Lewis-Olsson continues. “We have done a lot of business this year and we need to focus on that and those operations but we also need new business and we need to do follow up business in India and Asia. We want to keep selling our EW equipment and we’d like to break into the Sub-Saharan Africa market. We’re one of the few larger defence companies who are in the region so we’d like to see more business here.

“In South Africa itself there are a lot of requirements for defence in the next one or two years and there are a few other countries that have big projects. If we can find a way to do decent transparent business in those countries then we are more than prepared to go there too.”

To learn more about Saab Grintek Defence visit www.saabgroup.com.

www.aFRICAoutlookmag.com

121

F O R E W O RD

Manufacturing in S o u t h A f rica

Writer Coenraad Bezuidenhou executive director, Manufacturing Circle t has become clear to all that if Africa wants to leverage its population dynamics adequately for sustainable growth over the next decade, the continent needs to rapidly expand and build out its manufacturing base. South Africa may by far be the most industrialised of all African economies, but its relative position has been slipping and much work needs to be done for manufacturing to regain the strong foothold it once had here on the continent’s southern tip.

The Manufacturing Circle has made it its mission to converse with our

122

www.aFRICAoutlookmag.com

There are numerous opportunities for the situation to improve for manufacturers in South Africa over the next couple of years�

government on issues that challenged the survival and growth of many of our stalwart manufacturing companies.

Many improvements have resulted since we have started to have these conversations with government, many of which have contributed to an environment where manufacturing has been recovering, albeit at rates we would have liked to exceed. So the South African purchasing managers index has been in expansionary territory for five months of this year, which at least compares well with many of our competitors. But even so, volumes are now still at pre-October 2008 levels, which means there is still a long way to go.

m

a

nu

f a

ctu

South Africa has a reputation for manufacturing quality at a good price. We have long established trade relationships with the Eurozone and the U.S., which have allowed us to explore complementarities. So, for instance, we know that we are competitive with goods such as metal parts and components, rubber and plastics, pipes and process equipment and aftermarket automotive components. Our established manufacturing concerns are keen to find investment partners from strong competitor economies and to have their existing distribution networks leveraged to export products into Africa that are complimentary to their existing manufactured exports.

Though our conversations with government, we have promoted monetary and fiscal policy implementation that is circumspect of the needs of manufacturing. The South African Revenue Service has responded by improving customs operations and its interactions with key industries. The latest installment of South Africa’s industrial policy action plan envisages numerous transversal interventions and is less focused on picking winners, and more so on helping to enhance the competitiveness of our manufacturing sector.

There are numerous opportunities for the situation to improve for manufacturers in South Africa over the next couple of years. In the first instance, we are slowly but surely seeing the political space in the country becoming more competitive. This will have the effect that, especially at local and provincial government level, service delivery could improve over time. This would particularly benefit our many injection moulding and FMCG manufacturers who suffer worst during water and electricity supply interruptions.

In the second instance, the traction

r

ing

being gained by industrial policy measures has every chance to improve. Government’s local procurement strategy is succeeding where locally manufactured goods of the right quality can be supplied at prices that do not exceed justifiable premiums. In addition to this, industry also eagerly awaits the results of the Presidential Infrastructure Coordinating Commission, whose task it is to ensure a prioritised pipeline of infrastructure projects is being rolled out evenly, thus ensuring better project sightlines and facilitating better investment decisions.

The third opportunity lies in growing the market lies outside of South Africa’s borders. Here we concentrate on three areas. In the first instance, there are still numerous opportunities to deepen our relationships with our traditional export markets (Europe and the U.S.), who may not be growing as fast as our emerging competitors, but who are still affluent and has demand for products we could still potentially manufacture.

Secondly, with the introduction of the BRICS Business Council, we now

have the opportunity to explore complementarities with Brazil, Russia, India and China, with the hope of securing improved reciprocity on trade in manufactured goods. The third area is Africa, where massive urbanisation will provide excellent opportunities for South African-based manufacturers.

Finally, there is a massive opportunity for better alignment between the manufacturing industry and organised labour in South Africa. Whereas public sector unions have consolidated over the last decade, labour in the private sector has disaggregated. This opens the opportunity for labour and business to better rally around a strong industrial development agenda, to which government can then respond. This would not only bolster the labour market, but would massively strengthen industrial peace and productivity, which is a hallmark of any strong manufacturing economy.

To learn more visit www.manufacturingcircle.co.za.

www.aFRICAoutlookmag.com

123

k a N S a I

p l a S C O N

AFRICAN

124

WWW.AFRICAOUtlOOkMAg.COM

M

a

N

U

f a

C

T

U

r

I

N

G

kansai Plascon is a company with expansion on its mind. Already the premier paint company in South Africa, Plascon was purchased by Japanese company kansai in 2012. With a fresh injection of money from Japan, it purchased a 63.25 percent interest in Zimbabwean Astra Industries limited this July. Africa Outlook takes a closer look at this household name with huge ambitions.

Writer Hannah Eiseman-Reynard Project manager Tom Cullum

WWW.AFRICAOUtlOOkMAg.COM

125

k a N S a I

p l a S C O N

CQUENTIAL SOLUTIONS

C

quential – SEE WAREHOUSE RUN is about enabling you to convert your warehouse into a strategic asset, by improving operational efficiencies whilst enhancing customer service levels. this comprehensive solution gives you full control over warehouse processes with additional modules extending to suppliers and customers.

Behind the solution, you will find a group of extremely experienced and passionate business people and consulting and project teams that always go the extra mile to ensure the successful delivery of projects.

We have built up an impressive customer base across a number industries, and among others we enable ABB, Kansai Plascon, Famous Brands, Cipla Medpro, Enterprise Foods, Fresenius-Kabi and Fairfield Dairies.

Tel +27 11 236 4360 Email info@cquential.com

www.cquential.co.za

outh African paint and coatings company kansai Plascon’s history stretches back to 1889 when a carriage varnish seller expanded into ready-mixed paint – the first to do so in the country. In the years that followed Plascon, as it was known until Japanese company kansai purchased it in 2012, became South Africa’s largest manufacturer of paints, coatings and chemicals, serving both the retail and manufacturing industries. Now it has investment from Japan to go even further. “kansai had a clear mandate that once we came into Africa we would use kansai Plascon in South Africa for our platform for further growth into the rest of the continent,” CEO Nauman Malik told CNBC Africa’s Power lunch in an interview earlier this year.

126

the expansion has been rapid with a $5.5 million investment in a 63.25 percent share in Zimbabwean company Astra Industries – the leading paint company in Zimbabwe – just this July.

“We are very happy to say that we have made the first step in that expansion plan a reality,” Malik said.

Astra Industries focuses on the coatings industry and the industrial sector – much like kansai Paint does in South Africa, creating a formidable and joined-up approach to the entire paints and coatings market.

“As in any market you know finding the right partner is critical,” Malik continued.

And this is just the first step. the rest of the continent – East and West Africa – is on the radar and “we will be embarking upon acquisitions, greenfields projects, joint ventures in those territories as well,” Malik said.

WWW.AFRICAOUtlOOkMAg.COM

KONICA MINOLTA SENSING EUROPE B.V. konica Minolta products are renowned for their accuracy and total reliability for quality Assurance in the lab or in production We emphasize on competent presales consultancy as much as reliable and timely after sales support.

Email info.sensing@konicaminolta.eu

www.konicaminolta.eu

NARICH (PTY) LTD As the sole distributor for konica Minolta Sensing in the SADC region ensures that this competency is carried out in this market.

Tel 086 094 9903 Email colour@narich.co.za

www.narich.co.za

M

a

nu

f a

ctu

r

ing

Providing an affordable and collaborative environment across the supply chain

Cquential Warehouse Systems PO Box 413452, Craighall, Johannesburg, 2024, South E-mail: info@cquential.com Telephone: +2711-236-4360 Fax: +2711-236-4361

www.cquential.co.za

www.aFRICAoutlookmag.com

127

K a ns a i

P l a scon

eVONIK DEGUSSA (PTY) LTD

E

vonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals.

Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik has for many years used the Smart Formulating concept, which represents the promise that it will work closely with its customers in arriving at innovative, effective, and individual solutions for the formulation of advanced paint and coating systems.

Since 2005, the presentation of the system solutions offered has developed into a customer-oriented categorization of coatings components.

Tel +49 201 177-01

www.evonik.com

Kansai Plascon already has a presence in Malawi, Zambia, Botswana and Namibia. Now it’s looking at possible expansion into Kenya, Tanzania and Uganda in the East, and Nigeria and Ghana in West Africa.

“Those are big markets,” Malik continued. “They’re not only big markets in terms of consumer goods but of course with a lot of infrastructure development happening, the demand for coatings would substantially increase going into the future. We are looking into finding the right partners in both territories. Finding the right partner is key going forward.

Integration is key. Buying the company is the easy bit, but integrating it and then setting it up for success for further expansion is the key objective for us going into the future.”

Kansai Plascon’s relationship with Astra goes back to the mid 70s and in many ways, buying a large stake in the firm, was a “logical conclusion”.

128

www.aFRICAoutlookmag.com

We will be embarking upon acquisitions, greenfields projects, joint ventures in those territories as well”

“Astra Industries is a very longestablished company, very strong management, some very good brands and have been manufacturing some of the Plascon brands for several years,” says Ebrahim Mohamed, executive director for African operations.

Of course working in Zimbabwe is seen by some as a risky venture, but the acquisition seemed perfectly timed for Kansai Plascon.

The Investment Branch of the Bank of Zimbabwe was selling its stocks and Kansai Plascon stepped up to the challenge.

Though there were other interested parties Kansai Plascon was able to demonstrate why it should be the preferred bidder – from the historical relationship to the existing licence and technical agreements between the two companies already.

Importantly, it was also able to demonstrate a very clear and credible indigenisation programme which

M

a

nu

f a

ctu

Iron Oxide Pigments for Paints and Coatings.

Made by CATHAY. As one of the world’s leading manufacturers of iron oxides CATHAY INDUSTRIES pursues an ambitious goal: to offer pigments of the highest quality for the production of exceptional paints and coatings systems. As with CATHAYCOAT™ Red RA11A. This super micronized and easily dispersible pigment provides a particularly high chroma in comparison to standard iron oxides.

Your advantage: extraordinary brilliance and high colour saturation of your paints.

For more “brilliant” information on iron oxide pigments from CATHAY INDUSTRIES visit: www.cathayindustries.com / www.cathayindustries.co.za Or email us at: info@cathayindustries.co.za Cathay Industries (Africa) (Pty) Ltd has been proudly associated with Kansai Plascon in South Africa for the past 8 years.

r

ing

EXPERIENCE INNOVATION EXPERTISE Follow Us:

Jeremy Heathcote: 072 687 4314 Collin Austen: 082 331 0117

corp@clubtravel.co.za

www.clubtravel.co.za

www.aFRICAoutlookmag.com

129

k a N S a I

p l a S C O N

PROTEA CHEMICALS Creating customer wealth by leveraging knowledge through process innovation Providing exceptional and innovative service- based solutions by utilising assets to differentiate market offering A well established distributor and manufacturer of polymers, speciality, functional chemicals and effect chemicals Operating through out Africa supplying over 7000 customers with 700 generic products According to ICIS Protea Chemicals is the thirteenth largest chemical distributor in the world and the largest in Africa and Middle East Protea manages the entire customer supply chain and builds partnerships by providing chemical solutions that solve, not create, environmental issues.

www.proteachemicals.co.za would enable management and staff to benefit from the acquisition.

“I think it’s on these fronts that we were able to clinch the deal,” says Mohamed.

So, with such an ambitious (and proudly stated) expansion goal – what tips might Kansai Plascon offer other companies planning similar expansion? “I think homework is essential,” says Mohamed. “Certainly understanding and having a good grasp of the regulatory environment, understanding that one cannot find shortcuts at all. We also have a very strong Plascon brand and it will certainly serve us well going forward.”

Starting from South Africa, with Japanese funding, the kansai Plascon brand is extremely well placed to realise those ambitions.

“In South Africa you really have a little bit of the whole African continent right here in our country,” says Mohamed. “We

130

WWW.AFRICAOUtlOOkMAg.COM

M

a

nu

f a

ctu

r

ing

PLASTIPAK CC FOR YOUR PACKAGING REQUIREMENTS Creodata Business Solutions is an IT resource, outsource and technology company that specialize in the sourcing of top flight ITC staff, outsourcing of IT projects and the integration of systems. Creodata place a lot of emphasis on the building of mutually beneficial relationships with their customers. Our ventures in the market gave us the opportunity to partner with some of the most forward thinking IT companies in South Africa. We synergize and complement each other by leveraging from each other’s key strengths.

We are especially proud and honoured to be part of an extraordinary team at Kansai-Plascon and are determined to grow in assistance with one of the world’s leading brands.

Creodata believe in the future of South Africa and its youth. We have an active youth development program for young individuals that want to embark on a career in Information Technology. Most of the trainees are already successfully placed at customer sites and some are developing proprietary systems for Creodata.

We supply the following types of packaging: • Clear & Colour Plastic Bags/Sheets

• Toilet Roll Bags

• Printed (up to eight colours) Polyethylene Bags

For the past 12 years, we made IT happen. We will keep on doing so.

• Polyethlene Shrink Film

Pieter Grimsell: Tel: 0832720352 | Email: pieterg@creodata.co.za Adriaan Vivier: Tel: 0832609642 | Email: adriaanv@creodata.co.za

Tel: 031 305 4549 Email: plastipak@mweb.co.za 124 Berea Road, Berea, Durban, 4000

www.aFRICAoutlookmag.com

131

K a ns a i

132

P l a scon

www.aFRICAoutlookmag.com

M

a

N

U

f a

C

T

U

r

I

N

G

www.bayermaterialscience.com www.bayercoatings.com

Buying the company is the easy bit, but integrating it and then setting it up for success for further expansion is the key objective for us going into the future�

use that expertise for the various segments of our markets to understand the markets much better, to enter those markets with humility rather than an arrogance that we know we are the market leader, and our targets are very, very clearly identified.� kansai Plascon is the first of a new wave of international business. Africa is at the forefront of Japanese investment and we expect to see a lot more of this fast growing company.

WWW.AFRICAOUtlOOkMAg.COM

133

c eo pm p p c al n ot y hning a m e

?????

fabric ????? community The

?????????? ???????????????? ???????????????

????????????????

For South Africa’s Pep Clothing there is more to life than loss or profit.

Writer Chris Farnell Project manager Tom Cullum

134

www.aFRICAoutlookmag.com

of a

f Ea aN T UU f r aE C M

T

U

r

I

N

G

or more than 40 years, Pep Clothing, the manufacturing division of Pepkor, has been clothing South Africa. the company has been dedicated to providing every variety of high quality apparel.

“We’re more than 40 years old,” boasts Marthie Raphael, Pep Clothing’s general manager. “the first factory operated in KwaZuluNatal, and we soon founded another division in Cape town. 25 years ago we moved both of those divisions into one building. Over the years we’ve done many different clothing items.

We’ve been a school uniform factory, we’ve had limited fashion exposure, we’ve provided socks, blankets, underwear and stockings. However, over time many of those divisions have been relocated and sold, leaving us specialising in school uniforms.”

Raphael knows what she’s talking about, she’s been with the company for a while and has worked her way up through the business, seeing it from every perspective.

“My very first job was with the factory in 1993,” Raphael tells us. “I

worked as a quality engineer, then moved to Malawi, first for the group, then left to work for a local company for four years before returning to Pep Stores and from there moved back into the manufacturing side of the business again, where I moved up through the ranks. I’ve now held this position for six years.” throughout its 40 years Pep Clothing has built its reputation on one foundation – consistent quality. “the consistent quality of our clothing, trouser after trouser and shirt after shirt, has always been our unique selling point,” Raphael insists.

“We provide school clothing of a high standard, we supply two leading brands, and with school uniforms quality is paramount because it will be passed down for years.” that quality is all the more essential because Pep Clothing is competing in a market awash with cheap, low quality products.

“What happens with many of the imported products on the market is that year after year you will not get consistent quality and colour continuity,” Raphael explains. “We can achieve that quality because we

WWW.AFRICAOUtlOOkMAg.COM

135

p E p

C l O T h I N G

have an in house laboratory that tests all our products to destruction before they reach the shops, as well as a long established quality system which monitors quality from the source of our raw material supplies, to the delivery to our customers.”

Competing on quality alone is always a challenging proposal, especially when on all sides you are being undercut on price. “there are certainly areas in the industry that show growth, especially if you can offer superior quality to the cheaper imports, but the main challenge remains the cost of the raw materials we need. We’ve seen some job losses in the industry as a result of that,” Raphael says.

But in the long run it’s a strategy that has always worked for Pep Clothing, and continues to do so today.

“Over the last year we’ve outperformed our operational and financial budgets,” raphael says. “We operate on a break even model where profits go right back to the customer.

We’ve been performing higher than our targets, we’ve brought staff turnover down, absenteeism is low and our financial targets are being met. that being said, we have to continuously improve our offering to our customers in terms of value, as superior quality alone will not keep any business afloat.”

Even now, the business is working on making its facilities bigger and better, providing higher volumes than before.

“We’re in the process of renovating the whole factory and building,” Raphael tells us. “the entire site is being renovated. We have redesigned the factory layout to improve process flow. We are moving each of our four factories to a temporary area while we relay the factory according to our new line layouts. The first phase is already half way down the line and we expect to finish the project in 12 to

136

WWW.AFRICAOUtlOOkMAg.COM

M

a

N

U

f a

C

T

U

r

I

N

G

Drake & Scull is one of the largest and most sophisticated Facilities Management and Technical Service Providers in Southern Africa. We provide extensive technical, nontechnical and business support services, which enables us to deliver continuous cost benefits while improving the quality of our clients non-core services.

13 months, improving our efficiencies and health and safety standards, as well as replacing our light fittings with more environmentally friendly alternatives. Once the refurbishing is done, we’ll reintroduce shifts and expand our capacity.”

Constructing new facilities is only part of Pep Clothing’s ongoing projects for improvement however.

Another crucial facet it is working on is improving efficiencies and effectiveness throughout the entire operation. “last year we improved our productivity by one percentage point, lowered absenteeism by three percent, with the lowest labour turnover we’ve seen in seven years,” Raphael says. “this is thanks to a combination of the way we treat our employees, an organisational change to create a safe environment to work in, as well as providing extra support

that’s necessary because many of our employees come from difficult backgrounds. By providing a safe, supportive environment, we’re able to ensure that our employees don’t leave us as they appreciate our wide array of wellness and leadership programmes.” this is only the beginning as far as Raphael is concerned. She strongly believes in the ongoing improvement of the business.

“We still need to improve absenteeism and productivity,” she admits. “It remains a challenge during the winter months due to excessive rain and flooding. The biggest measure we’re introducing will be having assistance programmes for employees to put them in touch with government departments that can assist them, as well as introducing an attendance bonus, and more initiatives to bring services in house. For instance we have a full Employee Assistance programme

offering training, education and several other services to our employees.” this is about more than having a series of schemes that pay lip service to staff support however. raphael emphases that all of these efforts are just symptomatic of a corporate culture that really cares about its people.

“I think what’s very important to me is our organisational culture, treating everyone with dignity and respect,” she says. “the initiatives we run are quite unique for a large South African clothing manufacturer. these initiatives include full occupational and primary healthcare, as well as social workers on site. We run debt counselling sessions, a large number of training programmes for our employees and the ultimate cherry on the cake for us is knowing we can help our employees’ families and communities.”

WWW.AFRICAOUtlOOkMAg.COM

137

C r y S T a l

p a p E r

G r O U p

fullf lush

Crystal Paper is recognised as being the leading independent tissue paper manufacturer in Africa.

Writer Chris Farnell

Project manager Tom Cullum

138

WWW.AFRICAOUtlOOkMAg.COM

M a N U f a C T U r I N G

issue paper is big business. that box of tissues that you keep on standby for break-ups, weepy movies and nasty colds might look pretty unassuming, but there is a huge industry in place to make sure that your nose never goes un-blown.

It’s where the Crystal Paper group comes comes in. However, it’s a company with relatively humble beginnings as managing director rafik Dosani explains. “crystal Paper started in 1986 as one of the smallest tissue manufacturers in South Africa.

However, by 2006 we had become the largest independent tissue manufacturer in the country.”

Since its birth, the company that started out as Crystal Paper Mills Pty ltd has seen growth upon growth.

It is now a nationally respected manufacturer of tissue, as well as having an extensive recycling programme, with a huge proportion of its new products being made from recycled paper.

As the company has gone on to receive widespread recognition in South Africa and beyond, it has achieved a growing footprint in the national and international market, thanks party to a carefully laid out and well established manufacturing and sales infrastructure.

Indeed, at the time of writing, the Crystal Paper group is not only the largest privately owned tissue manufacturer in South Africa but the third largest such company across the entire continent of Africa.

But this growth didn’t happen overnight. the Crystal Paper group is the living embodiment of the saying “slow and steady wins the race”.

Dosani tells us, “the growth of the company has always been internally financed. A lot of the time this meant that the growth was very slow, but it has also remained

consistent. We’ve been growing steadily for over 20 years in a slow and consistent manner. We’ve accumulated a great deal of the business over a period of time.”

In recent years it’s really begun to pay off, especially since the start of the decade, despite the fact that many companies were still feeling the pinch from the impact of the global recession.

“Over the last three years we’ve seen consistent growth between 18 and 20 percent,” Dosani boasts.

“We’re particularly proud of that and consider it very significant given that for the past two years South Africa has been in a recession.”

Dosani is clear as to the reason for their success. “We’ve done things differently to many other companies in the market,” he admits. “We’ve taken extra measures to ensure that we are always able to add value for the customer.” the value added approach has been a key driver for the company’s growth. To this end, the firm has a “capitalisation of R250 million” Dosani says, and that is “essential for increasing” its manufacturing capacity and enabling future levels of growth.

“A large part of the company’s consistently successful growth strategy is that we have always been careful to look for and target new niches that appear in the market, something we’ve grown adept at with the wealth of experience the Crystal Paper group has built up,” he explains. “With the number of years we’ve spent in the industry we’ve learned about the niche markets to an extent that allows us to really target the niche customers.

Our wealth of experience has made us experts in South Africa and surrounding markets.”

However, regardless of which target market the Crystal Paper group has its sights on at any given time,

WWW.AFRICAOUtlOOkMAg.COM

139

C r y S T a l

p a p E r

G r O U p

the company’s message has always remained the same.

“If you want a consistent supply of tissue and to add value to your company, you should be dealing with the Crystal Paper group,” Dosani tells us, matter-of-factly.

Of course, a key driver behind the company’s success has always been the people behind the tissue paper.

And the Crystal Paper group is insistent on always finding the right people for the right job, and developing them with the skills they need. “training is held internally and on the job,” Dosani says. “We aim to pick people off the street and then train and build them up to the standard that we expect of the people we work with. We also aim to give something back to the community we work with.

Our company holds an advanced position within the community, and we perform a variety of social work all year round.”

140

WWW.AFRICAOUtlOOkMAg.COM

We’ve taken extra measures to ensure that we are always able to add value for the customer”

this includes measures such as a recycling scheme that allows for 19 trees to be saved for every one ton of recycle paper used by the factory and it has also saved 23,000 litres of water for every ton of recycled paper used.

However, the company has a particular advantage in that it is a family firm, and even though it is moving to a more corporate structure, it still aims to keep the best qualities it gained from its family origins.

“Although we are a family company, with two family members involved, a lot of the manpower comes from outside,” Dosani says.

“And we tend to promote our own people rather than source from other companies, and train them up. the main quality we look for in new recruits is honesty and loyalty. We look for people who are in it for the long term, not people who are here

M a N U f a C T U r I N G

6 Parsons Street, Industria West, Johannesburg, South Africa Tel: +27 11 474 2218 | Fax: +27 11 474 9435 | Email: sales@quickslit.co.za | www.quickslit.co.za

to learn everything and then move on, which is difficult because a lot of smaller companies target our staff.

“It’s been strange going from a family business to a corporate environment,” he continues. “We’re seriously considering going onto the Johannesburg Stock Exchange at the moment. It’s a big but necessary step to maintain our current levels of growth. to expand we need more capital, and the best way to do that is on the stock exchange.

“Once the company’s listed we’ll be looking to grow to meet the demands of the African continent as whole. there are a lot of industries and resources that are being developed across Africa that will increase the demand for tissue, and we’re becoming the prominent supplier of it.” to learn more visit www.tissuepaper.co.za.

WWW.AFRICAOUtlOOkMAg.COM

141

com p a n y

n a me

e

v

3rd annual Nigeria Energy and Power Summit

ents Rail Safety Africa 2013

Meetings Africa 2014

The Westin Cape Town Convention Square, Lower Long Street, Cape Town, South Africa

Sandton Convention Centre Johannesburg South Africa

1 2 December 2 0 1 3

2 4 - 2 6 F ebruar y 2 0 1 4

www.nigeriaenergyandpower.com

Mining Risk Management Summit: Africa

PHP South Africa Johannesburg 2014

Thinking Things Through

Indaba Hotel and Conference Centre Johannesburg South Africa

Venue to be announced Johannesburg South Africa

2 5 - 2 8 N o v ember 2 0 1 3

A p ri l / M a y 2 0 1 4 ( T B C )

Transcorp Hilton Abuja 1 Aguiyi Ironsi St Abuja 900001 Nigeria

2 8 - 2 9 N o v ember 2 0 1 3

SciBono Discovery Centre Johannesburg South Africa

1 December 2 0 1 3 www.fsi.org.za

ICTD2013 Kramer Building (K3) and the Baxter Theatre (O3) University of Cape Town Lovers Walk St Cape Town South Africa

7 - 1 0 December 2 0 1 3 www.ictd2013.info

Urban Rail Africa 2013 The Westin Cape Town Convention Square, Lower Long Street, Cape Town, South Africa

www.railconferences.com

www.miningriskmanagement summit.com

Central & East Africa Mining Investment Summit Venue to be announced London

2 0 - 2 3 J anuar y 2 0 1 4 www.ceamis.com

Rubyfuza 2014 Strand Tower Hotel Corner Strand and Loop Streets Cape Town South Africa

6 - 8 F ebruar y 2 0 1 4 www.rubyfuza.org

1 0 - 1 1 December 2 0 1 3 www.railconferences.com

142

www.aFRICAoutlookmag.com

www.meetingsafrica.co.za

www.phpsouthafrica.com

African Utility Week Cape Town International Convention Centre Convention Square, 1 Lower Long Street Cape Town South Africa

13 – 14 May 2014 www.african-utility-week.com

simply vanilla® – vanilla is our passion Our dedication to vanilla farming in Madagascar allows us to live our commitment to social responsibility and sustainability. From pollinating the blossoms to harvesting the beans, all the way to manufacturing the extract, we ensure the highest quality in cooperation with local farmers. We know our customers’ and consumers’ vanilla needs and meet them with creativity, expertise in application technology, and impressive taste concepts. Responsible simplicity: simply vanilla®. www.symrise.com

SAAB GRINTEK DEFENCE YOUR WINGMAN IN AFRICA Saab GRINTEK DEFENCE, a South African company, has consolidated its position on the African continent as a leading defence and security company, bringing capabilities including electronic warfare, sensor technology, command and control, training systems, avionics, air traffic management, security and support solutions to the African and international market.

We combine our local South African expertise with proven international capabilities to develop the prosperity of the nation along with its protection.

www.saabgroup.com/southafrica

We employ over 600 staff locally, working across the defence and civil security spectrum. Saab’s South African employees are engaged on all levels of the company, applying their skills ranging from highly specialised research to manufacturing and support staff.

Leading edge technologies are developed and matured, resulting in new products manufactured to the highest quality standards for security and defence use globally.